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HomeMy WebLinkAbout11A Norris Square Redevelopment TIMOTHY J. KUNTZ DANIEL J. BEESON *KENNETH J. ROHLF STEPHEN H. FOCHLER JAY P. KARLOVICH ANGELA M. LUTZ AMANN *KORINE L. LAND *DONALD L. HOEFT DARCY M. ERICKSON DAVID S. KENDALL *BRIDGET McCAULEY NASON TONA T. DOVE BRADLEY R. HUTTER ARIEL A. PITTNER • HAROLD LEVANDER 1910-1992 • ARTHUR GILLEN 1919-2005 • MEMO ROGER C. MILLER 1924-2009 * ALSO ADMITTED IN WISCONSIN ALSO ADMITTED IN NORTH DAKOTA ALSO ADMITTED IN MASSACHUSETTS ALSO ADMITTED IN OKLAHOMA ALSO ADMITTED IN ARIZONA TO: The Honorable Mayor Bailey and Members of the Cottage Grove City Council FROM:Korine Land, City Attorney DATE:December 21, 2016 RE: Presbyterian Homes Land Exchange Approvals As part of the project with Presbyterian Homes (“PHS”), there are several actions that need to occur, many of which have already been outlined by City Staff. Attached you will find numerous documents pertaining to the different components of the actions, including the following resolutions: 1.Resolution Authorizing City to Enterinto a Land Exchange Agreement, Short-Term Occupancy Lease, License Agreement for Water Tower Maintenance and All Necessary Access and Utility Easements 2.Resolution Approving a Lot Split forParcel Identification Number 18.027.21.11.0059 The supporting documents for such transactions are as follows: Land Exchange Agreement. This agreement outlines the terms and conditions of the transfer of real estate between the parties. PHS is conveying Outlot A to the City, the City is conveying Lot3 (Fire Station) to PHS, as well as a remnant parcel of right of way on Hadley. Akin to a purchase agreement, it has standard terms and conditions for the purchase and sale of real estate. Short-Term Occupancy Lease for the fire station. The City will beallowed to continue to utilize the fire station until June 30, 2018, if needed. This agreement states the terms and conditions of the lease. License Agreement for Water Tower Maintenance. When the City needs to conduct maintenance on the water tower, the City will be able to use a portion of PHS’ property 633 SOUTH CONCORD STREET • SUITE 400 • SOUTH SAINT PAUL, MINNESOTA 55075 • 651-451-1831 • FAX 651-450-7384 OFFICE ALSO LOCATED IN SPOONER, WISCONSIN for mobilization of this activity. This agreement contains terms relevant to this activity and will expire upon the decommissioning of the water tower. Access Easement Exhibit and Access EasementAgreement. The exhibit document depictsthe access easements that will be necessary for the City to access the water tower and for PHS to use an area around the water tower for emergency access to its facility. These legal descriptions and depictions will be incorporated into a formal easement document that will be recorded against the properties. The Access Easement Agreement isin draft form and will be approved subject to modification and final approval by the City Attorney. Warranty Deed for Hadley Right Of Way. This is the deed from the City to PHS for the remnant Right of Way parcel. Warranty Deed for Lot 3 (fire station). This is the deed from the City to PHS for the fire station lot. Warranty Deed for Outlot A. This is the deed from PHS to the City for Outlot A, which is at the intersection of Grange and Hadley. Other Easements. There are many other utility easements that will be necessary for the project that are still under review by the surveyor and attorneys. The documents included in thepacket are in draft form, so they will be approved subject to modification and final approval by the City Attorney. As always, I will be available for any questions. 2 Resolution Authorizing City to Enter into a Land Exchange Agreement, Short-Term Occupancy Lease, License Agreement for Water Tower Maintenance and All Necessary Access and Utility Easements CITY OF COTTAGE GROVE WASHINGTON COUNTY STATE OF MINNESOTA RESOLUTION NO. _____ A RESOLUTIONAUTHORIZING CITY TO ENTER INTO A LAND EXCHANGE AGREEMENT, SHORT-TERM OCCUPANCY LEASE, LICENSE AGREEMENT FOR WATER TOWER MAINTENANCE AND ALLNECESSARY ACCESS AND UTILITY EASEMENTS WHEREAS, PHS/CG Center, LLC, a Minnesota limited liability company (“PHS”) has submitted plans to the City of Cottage Grove (the “City”) for a senior living and nursing care facility (the “Project”); and WHEREAS, as part of the Project, the City will convey certain parcels to PHS, and PHS will convey an outlot to the City, the terms and conditions of which are memorialized in a land exchange agreement; and WHEREAS, one of the lots that the City will convey is occupied by a fire station that will need to be utilized for a short period of time by the City, therefore, the City will need to enter into a short-term occupancy lease; and WHEREAS, the City will need access to the City’s water tower, which PHS and an adjacent property owner have agreed to grant; and WHEREAS, PHS will need emergency access on the City’s property around the water tower that the City has agreed to grant; and WHEREAS, the City will need access on PHS property, so that the Citycan provide adequate maintenanceto the water towerand PHS has agreed to allow this access through a license agreement; and WHEREAS, there is a utility easement contained in recorded document number 1173363 that will be vacated over Lot 1, Block 1,PHS COTTAGE GROVE INCand will be replaced by a new utility easement; and WHEREAS, there are several other utility easements that will be necessary as part of the Project that have been prepared in draft form at this time. NOW THEREFORE, BE IT RESOLVED , by the Cottage GroveCity Council thatthe City hereby approves the following agreements and authorizes their execution, subject to minor modification and final approval by the City Attorney: 1.Land Exchange Agreement rd 2.Short-Term Occupancy Lease for Lot 3, Block 1, PHS COTTAGE GROVE INC 3 ADDITION 3.License Agreement for Water Tower Maintenance 4.Access Easement Agreement 5.Warranty Deed conveying Hadley right of way parcel rd 6.Warranty Deed conveying Lot 3, Block 1, PHS COTTAGE GROVE INC 3ADDITION nd 7.Warranty Deed accepting conveyance of Outlot A, PHS COTTAGE GROVE INC 2 ADDITION 8.Other Access and Utility Easementsor vacations thereof, as deemed necessary by the City Attorney 9.Any other documents necessary to effectuate and implement the transactions contemplatedby this Project, as determined by the City Attorney. Passed this day of , 2016 Myron Bailey, Mayor Attest: Joseph Fischbach, City Clerk Resolution Approving a Lot Split for parcel identification number 18.027.21.11.0059 CITY OF COTTAGE GROVE WASHINGTON COUNTY STATE OF MINNESOTA RESOLUTION NO. _____ A RESOLUTIONAPPROVING A LOT SPLITFOR PARCEL IDENTIFICATION NUMBER 18.027.21.11.0059 WHEREAS, parcel identification number 18.027.21.11.0059 is legally described as follows: That part of Tracts A and B, REGISTERED LAND SURVEY NO. 36, shown as Parcel 42N on MINNESOTA DEPARTMENT OF TRANSPORTATION RIGHT OF WAY PLAT NO. 82-21 as the same is on file and of record in the office of the Registrar of Titles in and for Washington County, Minnesota; EXCEPTING THEREFROM that part of said Parcel 42N as shown on said Plat No. 82-21 lying within the following described tract: All that part of Tract B of REGISTERED LAND SURVEY NO. 36 on file and of record in the office of the Registrar of Titles in and for said Washington County, described as follows: Commencing at the most westerly corner of said Tract B; thence northeasterly along the northwesterly line of said Tract B on a bearing of North 53 degrees 26 minutes 11 seconds East for 147 feet to the point of beginning of the tract to be described; thence South 36 degrees 33 minutes 49 seconds East for 155 feet; thence North 53 degrees 26 minutes 11 seconds East for 206.19 feet to an intersection with the northeasterly line of said Tract B; thence along said northeasterly line of Tract B on a curve concave to the northeast, central angle of 07 degrees 17 minutes 27 seconds, radius of 953.45 feet for 121.32 feet; thence along said northeasterly line of Tract B,North 36 degrees 33 minutes 49 seconds West for 34 feet to the most northerly corner of said Tract B; thence southwesterly along said northwesterly line of Tract B, South 53 degrees 26 minutes 11 seconds West for 198.48 feet to the point of beginning. (the “Property”); and WHEREAS, PHS/CG Center, LLC, a Minnesota limited liability company (“PHS”) has submitted to the City of Cottage Grove (the “City”) plans to split the Property; and WHEREAS ,PHS has prepared new legal descriptionsfor the split of the Property, described and depicted on the attached Exhibit A. 1 NOW THEREFORE, BE IT RESOLVED , by the Cottage Grove City Council that: 1.The City hereby approves the lot splitof the Property, as described and depicted on Exhibit A. 2.City Staff is authorized to execute, record or take any other actions necessary to implement the lot split. Passed this day of , 201 . Myron Bailey, Mayor Attest: Joseph Fischbach, City Clerk 2 EXHIBIT A New Legal Descriptions A-1 EXHIBIT A New Legal Descriptions (continued) A-2 Land Exchange Agreement LAND EXCHANGE AGREEMENT THIS LAND EXCHANGE AGREEMENTAgreement (this “”) is made and entered into effective as Effective DatePHS/CG Center, LLC of January _____,2017(“”), by and between, a Minnesota PHSCity of Cottage Grove limited liability company(“”) and the , a municipal corporation(the City “”). THE PARTIES MUTUALLY AGREE AS FOLLOWS : The PropertiesPHS 1..PHS owns the property legally described on Exhibit A (the “ PropertyFire Station ”). The City owns the property legally described on Exhibit B (the “ PropertyHadley Avenue ”)and the property legally described on the attached Exhibit C (the “ Parcel ”) (the Fire StationProperty and the Hadley Avenue Property are sometimes referred to City Properties herein together as the “”)(the PHS Property and the City Propertiesare PropertiesProperty sometimes referred to herein as the “,”or in the singular, the “”).PHS desires to acquire the City Propertiesfrom the City in exchange for the PHS Property, and the City desires to acquire the PHS Property in exchange for the City Properties. Exchange 2..Upon satisfaction of the terms and conditions of this Agreement, including without limitation the exchange and conveyance of the licenses, easements, leases, vacation of easements, and release of escrow deposit as hereinafter provided and referenced inthis Agreement, PHS shall transfer to the City all of PHS’sright, title and interest in and to the PHS Property, and the City shall transfer to PHS all of the City’s right, title and interest in and to the City Properties. Warranties and Representations 3..PHSand the City hereby warrant and represent to the other that, as of the date hereof, each of the following is true and accuratewith regard to the Property that they are transferring to the other: A.That there is no existing, pending or, to the best of either party’sknowledge,threatened violation, litigation, condemnation, suit, action, or proceeding before any court or administrative agency affecting their respective Property. B.Tothe best of either party’sknowledge, there are noadverseenvironmental conditions affecting their respectiveProperty which would have a material negative impact upon development of theirrespective Property.There are no underground or above-ground storage tanks located on or about their respectiveProperty.PHS Property is a former contaminated site, but has received a “No Action” letter from the MPCA and the City acknowledges and accepts the PHS Property as suitable for its purposes. C.That PHS and the City have made arrangements to have fee simple ownership of their respectivePropertyat the time of Closing, subject only to such matters that appear on the record of title,andthat both parties have the full right and authority to sell and convey their respective Property to the other as provided in this Agreement. -1- {00512096.1 } D.The individualsexecuting this Agreement on behalf of each party havethe requisite authority to execute this Agreement and such other documents as are contemplated or to be delivered by such party herein, and to bind such party thereto; and each party has the full and complete authority to sell their respectiveProperty. E.Neither party is a foreign person, foreign partnership, foreign trust or foreign estate as those terms are defined in Section 1445 of the Internal Revenue Code. F.Neither party is in default in the performance of any of their respective obligations under any easement agreement, covenant, condition, restriction or other instrument relating to their respectiveProperty. G.Their respectiveProperty will as of the Closing Date (hereinafter defined) be free and clear of all liens, security interests, all encumbrances, leases, pledges or other restrictions or objections to title, except as permitted by this Agreement. Title Matters 4.: Commitment A.. As soon as practicable after the date of this Agreement, PHS and the City, at their respective sole cost and expense, shall obtain for their respective Property Commitment a current Title Commitment for an Owner’s Title Policy (the “”) issued by Title Company First American Title Insurance Company (the “”), showingthe status of title of their respective Property and all exceptions, including liens, encumbrances, easements, restrictions, rights-of-way, covenants, reservations and other conditions, if any, affecting their respectiveProperty which would appear in a title policy, if issued, and committing to issue such title policy to the other party in the full amount of coverage required by each party for the Property to be acquired by each such party under this Agreement at the Closing. Accompanying such Commitment, each party shall also receive from the Title Company legible copies of all documents affecting the Propertiesand referred to in the Commitment. Each party shall pay the cost of obtaining any title policy. Survey B..Within five (5) days of the Effective Date, PHSshall provide to the City, at Survey PHS’sexpense, copies of allexistingsurveys of the Properties(the “”). Title Objection C. . If such Commitment described in Section 4.A.or the Survey described in Section 4.B.shows exceptions, defects or other matters adverse to the insurability of title and/or objectionable to either party, such partyshall make written objection to the other of such exception within forty-five (45) daysof the later to occur of (i) the Effective Date of this Agreement or (ii) receipt by each party of both the Commitment and Survey. Neither party need object to mortgages or monetary liens. If either party fails to cure such defectswithin fifteen (15) days of receipt of a written objection andprior to the ClosingDate, or if either party notifies the other of its decision not to cure or remove some or all of such defectswithin fifteen (15)days of receipt of a written objection andprior to the Closing Date,then the other party may either (a) terminate this Agreement by giving written notice thereof, and neither party -2- {00512096.1 } shall thereafter have any further rights, duties or obligations hereunder, or (b) elect to proceed with the transfers of the Properties subject to the objected matters. If not sooner satisfied, both parties shall satisfy any mortgages or monetary liens at Closing. Any matters on the Survey and/or title not objected to by either party shall be deemed Permitted Encumbrances “.” Leaseback of Fire Station 5..At the time of conveyance of the deed to the Fire StationProperty Fire StationLease from the City to PHS, PHS shall enter in to a lease (the “”) of the Fire StationProperty back to the City. The Fire StationLease shall be for a term to expire onJune 30, 2018,unless otherwise agreed to by the parties in writing, shall be an absolute net lease where the City pays for all of the expenses associated with possession and occupancy of the property, and shall contain such other terms and conditions as are acceptable to both the City and PHS. Upon expiration of the Fire StationLease, the City shall vacate the Fire Station Property, and PHS shall be responsible for the coststo demolish and remove the improvements located on the Fire StationProperty. Release of Escrow 6.. In exchange for the conveyances and other consideration afforded the City in this Agreement, the City hereby releases the $38,000of funds currently held by the City and shall at the time of Closing (hereinafter defined) utilize the escrowed funds to cover the City’s administrative expenses related to the PHS project. Contingencies 7..Both parties’obligation to close this transaction and exchange the Propertiesis contingent upon the satisfaction of each of the following: A.Each party shall have approved the Commitment described in Section 4.A.and the Survey described in Section 4.B.and shall have received a “mark up”of the Commitment by which the Title Company unconditionally commits to insure each party’stitle in the Property to be acquired by them in the amounts required by each party, with such deletions as is required by each party, including, without limitation, deleting the so-called “standard exceptions.” B.The other conveyances, terms and conditions of this Agreement shall have occurred and been satisfied. Each party shall pay all costs and expenses related to or arising out of each party’sactivities on the Property to be acquired by them and shall restore suchProperty to its original condition after completing its tests and investigations. Each party shall indemnify, defend and hold the other party and the Property to be acquired by them harmless from any and all costs, expenses, liens (including mechanic’s liens), damages, claims and any other liability (including reasonable attorneys’fees) arising out of or related to such party’sactivities on the Propertyto be acquired by themprior to Closing. The contingencies in this Agreement are for the sole benefit of each party. Closing 8..Provided that this Agreement has not been canceled or terminated as allowed herein, Closing the Closing (herein the “”) shall take place on a date mutually acceptable to PHSand Closing the City that is not later than thirty (30) days after the date of this Agreement(the “ -3- {00512096.1 } Date ”). The Closing shall take placeat a mutually agreeable time and place. Delivery of possession of the Propertiesshall occur on the ClosingDate. On the ClosingDate,each party shall execute and deliver to the other party: A.Awarranty deed conveying marketable title to theProperty conveyed by such party subject only to the Permitted Encumbrances; B.Properly executed affidavits in the customary form stating thatthere are no unrecorded interests, liens, judgments, mechanic liens, bankruptcies, etc. which affect their respectiveProperty; C.A transferor’s certification stating that such party is not a “foreign person,”“foreign partnership,”“foreign trust”or “foreign estate”as those terms are defined in Section 1445 of the Internal Revenue Code; D.All documents and instruments that may be required of such party under applicable law, including any revenue or tax certificates or statements, or any affidavits, certifications or statements relating to the environmental condition of any of their respectiveProperty; E.A settlement statement consistent with this Agreement executed by each party; F.Appropriate federal income tax reporting form; G.All other documents reasonably determined by either party or the Title Company to be necessary to transfer their respective Property to the other party free and clear of all encumbrances except those permitted under this Agreement; Closing Costs 9..The partiesshall pay the following costs and expenses in connection with the Closing: A.Each party shall pay for the cost of obtaining any required title curative documentsfor their respective Property; B.Each party shall pay for recording fees for any title curative documentsfor their respective Property; C.Each party shall pay any deed tax or other realty transfer fees imposed upon the transfer of their respectiveProperty; D.PHS shall pay all of the escrow or closing fees charged by the Title Company; E.PHS shall pay the cost to record the vacations for the Easements to be Vacated and the Replacement Easements. -4- {00512096.1 } F.PHS shall pay the cost to record all deeds related to this Agreement. G.Each party shall pay their respective attorneys’fees; H.Other costs to bepaid by either party set forth herein; and I.All other expenses incurred by either party with respect to the conveyance of the deeds and Closing under this Agreement, including but not limited to each parties’respective attorneys’fees, are to be borne and paid exclusively by the party incurring the same, without reimbursement except to the extent otherwise specifically provided in this Agreement. Taxes and Special Assessments 10..Each party shall pay all real estate taxes and special assessments due in theyears prior to the year of Closing. All general real estate taxes and special assessments certified and due and payable in the year of Closingshall be prorated as of the Closing Date. Notices 11.. Any notice which any party hereto may desire or may be required to give to any other party shall be in writing and either (a) mailed by certified mail, return receipt requested, or (b) sent by overnight carrier which provides for a return receipt, or (c) sent by facsimile to the party’s fax number indicated below. Any such notice shall be sent to the respective party’s address as set forth below or to such other address as such party may, by notice in writing, designate as its address. Any such notice shall constitute service of notice hereunder three (3) days after the mailing thereof by certified mail, one (1) day after the sending thereof by overnight carrier, and on the same day as the sending of a facsimile pursuant to the terms hereof. The notices shall be addressed as follows: A.If to the City:City of Cottage Grove, Minnesota Attn:Charlene Stevens Cottage Grove City Hall 12800 Ravine Parkway South Cottage Grove, Minnesota55016 With a copy to:LeVander, Gillen & Miller, P.A. Attn:Korine L. Land 633 South Concord Street, Suite 400 South St. Paul, MN 55075 B.If to PHS:PHS/CGCenter,LLC Attn:Pam Belz 2845 Hamline Avenue North, Suite 100 Roseville, Minnesota 55113 -5- {00512096.1 } With a copy to:Leonard, O’Brien, Spencer, Gale & Sayre, Ltd. Attn:Grover C. Sayre, III 100 South Fifth Street, Suite 2500 Minneapolis, Minnesota 55402 Brokerage Commission 12..Each party represents and warrants to the other that it has not engaged any agentorbroker in connection with the transaction contemplated by this Agreement in such a manner as to give rise to any valid claim for a broker’s fee. Blocked Persons 13.. Neither partynor, to the actual knowledge of either party, any of their Anti- affiliates, is in violation of any laws relating to terrorism or money laundering (“ Terrorism Laws ”), including Executive Order No. 13224 on Terrorist Financing, effective Executive Order September 24, 2001 (the “”), and the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56. Neither party hereto nor, to the actual knowledge of the parties, any of their affiliates, is any of the following: (a) a person or entity that is listed in the annex to, or is otherwise subject to the provisions of, the Executive Order; (b) a person or entity owned or controlled by, or acting for or on behalf of, any person or entity that is listed in the annex to, or is otherwise subject to the provisions of, the Executive Order; (c) a person or entity with which either party is prohibited fromdealing or otherwise engaging in any transaction by any Anti- Terrorism Law; (d) a person or entity that commits, threatens or conspires to commit or supports “terrorism”as defined in the Executive Order; or (e) a person or entity that is named as a “specially designated national and blocked person”on the most current list published by the U.S. Treasury Department Office of Foreign Asset Control at its official website or any replacement website or other replacement official publication of such list. Neither the parties, nor any of their affiliates (i) conduct any business or engage in making or receiving any contribution of funds, goods or services to or for the benefit of any person described in this Section 15, (ii) deals in, or otherwise engage in any transaction relating to, any property or interests in property blocked pursuant to the Executive Order, or (iii) engage in or conspire to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding, or attempt to violate, anyof the prohibitions set forth in any Anti-Terrorism Law. This Agreement may be terminated by either party if the other party is determined to be a blocked person within the meaning of the Executive Order. Survival 14.. Each and every representation, agreement, covenant and warranty made by either party in this Agreement, or in any exhibit attached hereto shall be effective and shall survive the Closing as expressed and provided for in this Agreement, for a period of twelve (12) months following the Closing Date. Default 15..Ifeither party shall default under this Agreement and the transaction cannot be consummated or is not consummated by the parties as a result of such default, then the nondefaulting party shall be entitled, at their option, to (i) declare this Agreement to be null and void, in which event neither party shall have any further claims against, obligations to or rights against the otheror(ii) enforce this Agreement by specific performance. -6- {00512096.1 } Rights of Inspection;Testing and Review of Property 16..Each party authorizes the other, their respectivecounsel, accountants, agents and other representatives, to have access to the other’s Property and all parts thereof, at reasonable times and in coordination with activities taking place on saidPropertyandto investigate and inspect the physical condition of said Property. Each party shall, at such party’ssole cost and expense, restore and/or repair the other’s Property to the condition the same was in prior to such party’sentry and inspections. Furthermore, each party shall indemnify and hold the other harmless against any and all liability, damages, claims, suits, causes of action or any proceeding, including reasonable attorneys’fees arising out of such party’sor its employees and agents, conducting inspections on the other’sProperty. Miscellaneous 17.: A.Time is strictly of the essence hereunder. B.This Agreement shall be binding upon thesuccessors and assignsof both partiesand shall inure to the benefit of each party,theirsuccessors and assigns. C.Any reference in this Agreement by name or number, to a government department, agency, statute, regulation, program or form shall include any successor or similar department agency, statute, regulation, program orform. D.All articles, section titles and headings in this Agreement are for convenience only. They shall not be deemed part of this Agreement and in no way define, limit, extend or describe the scope or intent of any provisions hereof. E.Wherever the context may require, any pronoun used herein shall include the corresponding masculine, feminine, or neuter forms. The singular forms of nouns, pronouns, and verbs shall include the plural and vice versa. F.This written Agreement constitutes the complete Agreement between the parties and supersedes any prior oral or written agreements between parties regarding their respectiveProperty. There are no verbal agreements that change this Agreement and no waiver of any of its terms will be effective unless in a writing executed by the parties. G.This Agreement has been made under the laws of the State of Minnesota, and such laws will control its interpretation. H.The parties execute and deliver all documents, provide all information and take and forbear from all such action as may be necessary or appropriate to achieve the purposes of this Agreement. I.No provision of this Agreement shall be construed by any court or other judicial authority against either party by reason of any such party being deemed to have drafted or structured such provision. -7- {00512096.1 } J.Each party shall have the right to assign its rights hereunder to any entity in which each party holds a controlling interest. Any other assignments require the otherparty’s written consent. Each party may assign its interest hereunder only after receiving the other party’swritten consent. K.This Agreement may be executed in several counterparts, each of which when executed is considered an original, but all of whichtogether shall constitute one instrument. Separate signature pages may be signed by each party to this Agreement and each complete set of pages hereto, with signature pages signed by each party, shall constitute one original of this Agreement. This Agreement may be delivered by facsimile or email and the parties agree to accept and be bound by facsimile or email signatures. L.If any provision of this Agreement shall be determined to be invalid or unenforceable, the remaining provisions shall not thereby be rendered invalid or unenforceable, provided that the remaining provisions, taken together, do not materially reduce the benefits or increase the obligations of any party hereunder. M.No delay in the exercise of any right shall be deemed a waiver thereof, nor shall the waiver of a right or remedy in a particular instance constitute a waiver of such right or remedy generally. \[Signatures begin on next page\] -8- {00512096.1 } To evidence their agreement to the foregoing, the parties have duly executed this instrument on the date aforementioned. PHS/CGCenter,LLC (AMinnesota limited liability company) ________________________________ Signature ________________________________ Name (print) ________________________________ Title -9- {00512096.1 } CITY OFCOTTAGE GROVE (A municipal corporation) By: ____________________________ Mayor Myron Bailey By: ____________________________ City Clerk Joseph Fischbach -10- {00512096.1 } EXHIBIT A PHS PROPERTY Outlot A, PHS COTTAGE GROVE INC 2NDADDITION, according to the plat thereof on file and of record in the office of the Registrar of Titles in and for the County of Washington and State of Minnesota. PID: 18.027.21.11.0068 Certificate of Title No. 70851 A-1 EXHIBIT B THE FIRE STATIONPROPERTY Lot 3, Block 1,PHS COTTAGE GROVE INC 3RD ADDITION, according to the plat thereof on file and of record in the office of the Registrar of Titles in and for the County of Washington and State of Minnesota. Torrens Property B-1 EXHIBIT C THE HADLEY AVENUE PARCEL That part of Parcel 42Nshown on the plat designated as MINNESOTA DEPARTMENT OF TRANSPORTATION RIGHT-OF-WAY PLAT NO. 82-27 on file and of record in the office of the Registrar of Titles in and for Washington County, Minnesota, described as beginning at monument B9 of said MINNESOTA DEPARTMENT OF TRANSPORTATION RIGHT-OF-WAY PLAT NO. 82- 27; thence South 05 degrees 21 minutes 08 seconds East, assumed bearing, along a westerly line of said Parcel 42N a distance of 64.45 feet to monument B8 of said plat; thence South 37 degrees 02 minutes 44 seconds East along a southwesterly line of said Parcel 42N a distance of 70.58 feet to monument B7 of said plat; thence North 84 degrees 38 minutes 52 seconds East along a southerly line of said Parcel 42N a distance of 48.80 feet to monument B6 ofsaid plat; thence northwesterly 151.48 feet, along a non-tangential curve, concave to the southwest, having a radius of 798.08 feet, a central angle of 10 degrees 52 minutes 29 seconds and a chord the bears North 39 degrees 56 minutes 53 seconds West to the point of beginning. Torrens Property C-1 Short-Term Occupancy Lease SHORT-TERM OCCUPANCYLEASE THIS SHORT-TERM OCCUPANCY LEASELease (this “”), effective as of _____________,2017 Effective DatePHS/CG Center, LLC (the “”), is entered into by and between , a Minnesota limited LandlordCity of Cottage Grove liability company, as landlord (“”), and the , a municipal corporation, Tenant as tenant (“”). RECITALS A.Landlord and Tenant presently are parties to a Land Exchange Agreement, with an effective Exchange Agreement date of _______________,2017(the “”),under which Landlord will acquire from Tenant a parcel of real estate located in the City of Cottage Grove, Minnesota, and Property legally described on the attached Exhibit A (the “”). B.For a period of time following transfer of the Property to Landlord, Tenant desires to lease the Property from Landlord, and Landlord desires to lease the Property to Tenant. NOW THEREFORE , in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiencyof which are hereby acknowledged, Landlord and Tenant hereby agree as follows: 1.Property. Landlord leases the Property to Tenant, and Tenant leases the Property from Landlord. Term 2.Term. The term (the “”) of this Leasewill commenceonthe Effective Date and will expireonthe earliest to occur of:(a) the date Tenant vacates the Propertyor (b)June 30, 2018, unless otherwise agreed to by the parties in writing. 3.Rent.Tenant shall pay, when due,alltaxes, utilities, maintenance costs, repairs, operating expenses and all costs and expenses of any kind incurred at, related to, or resulting fromthe Property and/orTenant’s use or occupancy of the Property. 4.Possession. If Tenantperforms all of itsobligations under this Lease, Landlord promises that Tenant may peaceably and quietly possess and enjoy the Property. 5.Permitted Use.Tenant shall only use the Property for public safety purposes,and for no other use whatsoever. 6.Compliance with Laws. Tenant will at its expense promptly comply with all laws, ordinances, rules, orders, regulations, directives and other requirements of governmental authorities now or subsequently pertaining to the Property. 7.Assumption of Risks. Tenant assumes all risk of loss or damage to or of the Property, or Tenant’s property within the Property,including any loss or damage caused by water leakage, fire, windstorm, explosion, theft or any other cause. Landlord will not be liable to Tenant, or -1- {00531324.1 } those claiming through Tenant, for injury, death or property damage occurring in or at the Property. 8.Indemnification. Tenant will indemnify Landlord against all claims, demands and actions, and all related costs and expenses (including attorneys’fees) for injury, death, disability or illness of any person, or damage or destruction of any property,occurring in or at the Property or arising out of Tenant’s use of the Property. 9.Insurance.At all times during the Term, Tenant will keep commercial general liability insurance in force at its expense by an insurer and policy acceptable to Landlord in its reasonable opinion. The policy will name Landlord as an additional insured, for limits of at least $2,000,000. Landlord will have no obligation to insure the Property or Tenant’s personal property located in or at the Property.On or before the Effective Date, Tenant shall provide evidence of such insurance coverage acceptable to Landlord in Landlord’s sole and absolute discretion. 10.Assignment and Subletting. Tenant shall not assign this Leaseor sublet all or any part of the Property without the written consent of Landlord. No such assignment or subleasewill relieve Tenant of liability under this Lease. 11.Defaults.Tenant shall bein default under this Leaseif it breaches any one or more provisions of this Lease, andfails to cure the same within ten (10)business days after receipt of Landlord’s written notice of such breach. If Tenant is in default, Landlord may either or both immediately terminate this Leasewithout additional notice to Tenant, and pursue all remedies available at law and in equity. 12.Waiver of LeaseProvisions. No waiver of any provision of this Leasewill be deemed a waiver of any other provision, and waiver of a right or remedy in one instance will not preclude enforcement of that same right or remedy in the future. 13.Notices. Any notice under this Leasemust be in writing, and must be sent bypersonal delivery, prepaid certified mail, orreputable overnight courier, addressed to Landlord and/or Tenant, as appropriate, at the addresses set forth below, or to such other address as is designated by either partyin a notice given under this section. A notice is given on the date of actual receipt or three days after the depositin the mail, whichever is earlier. If to Landlord:PHS/CG Center, LLC Attn:Pam Belz 2845 Hamline Avenue North, Suite 100 Roseville, Minnesota 55113 With a copy to:Leonard, O’Brien, Spencer, Gale & Sayre, Ltd. Attn:Grover C. Sayre, III 100 South Fifth Street, Suite 2500 Minneapolis, Minnesota 55402 -2- {00531324.1 } If to Tenant:City of Cottage Grove, Minnesota Attn:Charlene Stevens Cottage Grove City Hall 12800 Ravine Parkway South Cottage Grove, Minnesota 55016 With a copy to:Levander, Gillen & Miller, P.A. Attn:Korine Land 633 Concord Street South, Suite 400 South St. Paul, Minnesota 55075 14.Memorandum of Lease; Recordable Termination. Tenant shall not record this Leasenor a short form lease regarding this Lease. 15.Governing Law. This Leasewill be construed under and governed by the laws of the State of Minnesota. If any provision of this Leaseis illegal or unenforceable, it will be severable and all other provisions will remain in force as though the severable provision had never been included. 16.Entire Agreement. This Leasecontains the entire agreement between Landlord and Tenant regarding the Property. Tenant agreesthat it has not relied on any statement, representation or warranty of any person except as set out in this Lease. This Leasemay be modified only by an agreement in writing signed by Landlord and Tenant. No surrender of the Property, or of the remainder of the Term, will be valid unless accepted by Landlord in writing. 17.Successors and Assigns. All provisions of this Leasewill be binding on and for the benefit of the successors and assigns of Landlord and Tenant, except that no person or entity holding under or through Tenant in violation of any provision of this Leasewill have any right or interest in this Leaseor the Property. \[The balance of this page is intentionally left blank.\] -3- {00531324.1 } Landlord and Tenant have executed this Leaseto be effective as of the Effective Date. Landlord : PHS/CG Center, LLC (AMinnesota limited liability company) ________________________________ Signature ________________________________ Name (print) ________________________________ Title \[Signature page 1 of 2 to Short-Term Occupancy Lease\] -4- {00531324.1 } Tenant : CITY OF COTTAGE GROVE By: ____________________________ Mayor Myron Bailey By: ____________________________ City Clerk Joseph Fischbach \[\] Signature page 2of 2 to Short-Term Occupancy Lease -5- {00531324.1 } EXHIBIT A LEGAL DESCRIPTION OFTHE PROPERTY Lot 3, Block 1, PHS COTTAGE GROVE INC 3RDADDITION, according to the plat thereof on file and of record in the office of the Registrar of Titles in and for the County of Washington and State of Minnesota. A-1 License Agreement for Water Tower Maintenance LICENSE AGREEMENTFOR WATER TOWER MAINTENANCE THIS LICENSE AGREEMENTLicense (this “”) is made and entered effective as of ____________ PHS/CG Center, LLCGrantor _______,2017between , a Minnesota limited liability company (“”) City of Cottage GroveGrantee and the , a municipal corporation (“”). RECITALS : A.Grantor is the owner of the real property legally described onthe attached Exhibit A Grantor’s Property (“”). B.Grantee is the ownerof the real property legally described on the attached Exhibit B Grantee’s Property (“”). C.Grantee needs access from time to time to a portion of Grantor’s property in order to perform routine maintenance on the water tower located on Grantee’s Property. NOW, THEREFORE , for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Grantor and Grantee hereby agree as follows: LICENSE 1..Grantor hereby grants to Grantee and Grantee’s Permittees(as hereinafter defined) a license to, from time to time, temporarilyencroach up to 25feeton to Grantor’s Property over the boundary lines between Grantor’s Property and Grantee’s Propertyon the northeast sideand up to 35 feet on to the Grantor’s Property over the boundary lines between Grantor’s Property and Grantee’s Property on the southeast side for the purpose of locating the equipment needed to undertakeand perform routine maintenance on and to the water tower located on Permitted Encroachment Grantee’s Property(the“”).The Permitted Encroachment is Grantee’s Permittees depicted on Exhibit C. For the purpose of this License, “”shall mean Grantee’s contractors, sub-contractors, engineers, agents and employees. DURATION 2.. The license granted in this License shall become effective as of the date hereof and shall terminate upon the earlier to occur of (i) the date Grantee no longer owns Grantee’s Property or (ii) the date Grantee no longer uses the water tower located on Grantee’s Property and has fully decommissioned it. HOLD HARMLESS AND INDEMNITY 3..Grantee agrees to pay and to protect, indemnify and save harmless Grantor from and against any and all liabilities, damages, costs, expenses (including reasonable attorneys’fees), causes of action, suits, claims, demands, or judgments of any nature whatsoever arising from the following to the extent that they are caused by Grantee’s or Grantee’s Permittee’s use of Grantor’s Propertyin connection with this License: (a) any work or thing done by Grantee or at its direction in, on, or about Grantor’s Property; (b) injury to, or the death of persons or damage to property on Grantor’s Propertyor upon adjoining sidewalks, trees, fences, gates, streets, alleys, curbs, or in any manner growing out of or connected with the Permitted Encroachment; (c) any negligence in connection with the exercise of the rights granted herein by Grantee or any of Grantee’s Permittees; (d) violation by -1- {00531339.1 } Grantee of any agreement or condition of this License or of any conditions, agreements, or restrictions of which Grantee has been given written notice or governmental statutes, charters, laws, rules, ordinances, or regulations affecting Grantor’s Property or the use thereof; (e) the provisions ofthis Section 3shall survive the termination of this License. INSURANCE 4.. Grantee shall procure, and provide evidence acceptable to Grantor,that Granteehas procured liability insurance in the amount of not less than TwoMillion Dollars ($2,000,000.00) insuring Grantee against (i) any liability that may result from any claims, causes of action, suits, demand, injury to,or death of persons or damage to property, resulting from Grantee’s activities on Grantor’s Propertyand (ii) any of those matters that Grantee has agreed to indemnify Grantor for, or hold Grantor harmless against, under paragraph 3 of this License. Grantor shall be named as additional insured under the policy of liability insurance and shall be provided with an agreement by the issuer to provide Grantee with notice of cancellation. NOTICESNotice 5..Any notice, demand or request (“”) in this Licenseprovided or permitted to be given, by either party to the other must be in writing and shall effectively be given if deposited in the United States mail, postage prepaid and certified return receipt requested and addressed to the party to be notified, or delivered in person to such party by a third party providing proof of such delivery. Any Notice mailed shall be effective upon deposit in the United States Mail. For purposes of Notice, the addresses of the parties shall, until changed as hereinafter provided, be as follows: If to Grantee:City of Cottage Grove, Minnesota Attn:Charlene Stevens Cottage Grove City Hall 12800 Ravine Parkway South Cottage Grove, Minnesota 55016 With a copy to:Levander, Gillen & Miller, P.A. Attn:Korine Land 633 Concord Street South, Suite 400 South St. Paul, Minnesota 55075 If to Grantor:PHS/CG Center, LLC Attn:Pam Belz 2845 Hamline AvenueNorth, Suite 100 Roseville, Minnesota 55113 With a copy to:Leonard, O’Brien, Spencer, Gale & Sayre, Ltd. Attn:Grover C. Sayre, III 100 South Fifth Street, Suite 2500 Minneapolis, Minnesota 55402 The parties shall have the right from time to time to change their respective addresses upon at least fifteen (15) days prior written notice to the other party. -2- {00531339.1 } GENERAL 6.. This License does not create the relationship of principal and agent or of partnership or of joint venture or of any association between Grantor and Grantee, the sole relationship between the parties hereto being that of Grantor and Grantee. This Licenseshall be governed by and construed in accordance with the laws of the State of Minnesota.Grantee may not assign this License to any entity without Grantor’s prior written consent. The invalidity or unenforceability of any provision of this Licensein any particular respect shall not affect the validity and enforceability of any other provision of this Licenseor of the same provision in any other respect. Time shall be of the essence with respect to this License. The headings of this License are insertedonly as a matter of convenience and for reference, and in no way define, limit or describe the scope of this License nor the intent or any provision thereof. This License may be executed in counterparts and by email and facsimile signatures, all of which when taken together shall constitute one and the same original License. BINDING AGREEMENT. 7.The parties mutually recognize and agree that all terms and conditions of this License shall run with Grantor’s Propertyand shall be binding upon the heirs, successors, administrators and assigns of the parties. This Agreement shall also be binding upon all after-acquired rights, interests and title of the parties that may be acquired from and after the date of this License. \[Signatures begin on next page\] -3- {00531339.1 } IN WITNESS WHEREOF , Grantor and Grantee have executed this License as of the date first above written. Grantor : PHS/CGCenter, LLC (AMinnesota limited liability company) ________________________________ Signature ________________________________ Name (print) ________________________________ Title -4- {00531339.1 } Grantee : CITY OF COTTAGE GROVE By: ____________________________ Mayor Myron Bailey By: ____________________________ City Clerk Joseph Fischbach -5- {00531339.1 } EXHIBIT A LEGAL DESCRIPTION-GRANTOR’S PROPERTY Lot 2, Block 1, PHS COTTAGE GROVE INC 3RD ADDITION, according to the plat thereof on file and of record in the office of the Registrar of Titles in and for the County of Washington and State of Minnesota. A-1 EXHIBIT B LEGAL DESCRIPTION-GRANTEE’S PROPERTY Lot 5, Block 1, PHS COTTAGE GROVE INC 3RD ADDITION, according to the plat thereof on file and of record in the office of the Registrar of Titles in and for the County of Washington and State of Minnesota. B-1 EXHIBIT C DEPICTION OF PERMITTED ENCROACHMENT C-1 Access Easement Exhibitand Access Easement Agreement ______________________________________________________________________________ (FRUO) ORECORDING SENLY ACCESS EASEMENT AGREEMENT THIS ACCESS EASEMENT AGREEMENTEasement Agreement (this "") is made and PHS/CG Center, LLC entered into this _____ day of December, 2016, by and between , a PHS/CGCity of Cottage Grove Minnesota limited liability company (""), and the , a municipal City corporation (the ""). RECITALS A.PHS/CG is the owner of those certain parcels of real property situated in the City of Cottage Grove, County of Washington, State of Minnesota, more particularly described Parcels A on Exhibit A attached hereto and incorporated herein by this reference (""), and the City is the owner of that certain real property situated in the City of Cottage Grove, County of Washington, State of Minnesota, more particularly described on Exhibit B Parcel B attached hereto and incorporated herein by this reference ("") (Parcels A and Parcels Parcel B are collectively referred to herein as the ""). B.PHS/CG and the City desire to impose an easement for access upon the Parcels, for the mutual and reciprocal benefit and complement of the Parcels and the present and future owners and occupants thereof, on the terms and conditions hereinafter set forth. NOW, THEREFORE , in consideration of the above premises and of the covenants herein contained, the parties hereto hereby declare that the Parcels and all present and future owners and occupants of the Parcels shall be and hereby are subject to the terms, covenants and easements hereinafter set forth in this Easement Agreement, so that said Parcels shall be maintained, kept, sold and used in full compliance with and subject to this Easement Agreement and, in connection therewith, PHS/CG and the City covenant and agree as follows: AGREEMENTS 1. Definitions. For purposes hereof: - 1 - {00534693.1 } OwnerOwners (a) The term "" or "" shall mean PHS/CG and the City and any and all successors or assigns of such persons as the owner or owners of fee simple title to all or any portion of the real property covered hereby, whether by sale, assignment, inheritance, operation of law, trustee's sale, foreclosure, or otherwise, but not including the holder of any lien or encumbrance on such real property. ParcelParcels (b) The term "" or "" shall mean each separately identified parcel of real property now constituting a part of the real property subjected to this Easement Agreement as described on Exhibit A, that is, Parcels A and on Exhibit B, that is, Parcel B, and any future subdivisions thereof. Permittees (c) The term "" shall mean the tenant(s), resident(s) or occupant(s) of a Parcel, and the respective employees, agents, contractors, customers, invitees and licensees of (i) the Owner of such Parcel, and/or (ii) such tenant(s), resident(s) or occupant(s). Access Easement Area (d) The term "" shall mean those portions of Parcels A and Parcel B legally described and depicted on Exhibit C attached hereto and incorporated herein. 2. Easement: 2.1 Grant of Reciprocal Access Easement. Subject to any express conditions, limitations or reservations contained herein, PHS/CG and the City hereby declare that the Parcels, and all Owners and Permittees of the Parcels, shall be benefited and burdened by the following nonexclusive, perpetual and reciprocal easement in favor of each Parcel for reasonable access, ingress and egress over all paved driveways, roadways and walkways as presently or hereafter constructed in the Access Easement Area for the passage of motor vehicles and pedestrians over and Paved Passageways across the Access Easement Area (the ""). 2.2 Reasonable Use of Easements. The easements herein above granted shall be used and enjoyed by each Owner and its Permittees in such a manner so as not to unreasonably interfere with, obstruct or delay the conduct and operations of the business and activities of any other Owner or its Permittees at any time conducted on its Parcel, including, without limitation, public access to and from said business, and the receipt or delivery of merchandise in connection therewith. 3. Maintenance. Each Owner of a Parcel covenants at all times during the term of this Easement Agreement to maintain or cause to be maintained at its expense all Paved Passageways located on its Parcel in good working order, condition and repair. 4. Insurance. Throughout the term of this Easement Agreement, each Owner shall procure and maintain (or cause to be procured and maintained) general and/or comprehensive public liability and property damage insurance against claims for personal injury, death, or property damage occurring upon such Owner's Parcel, with single limit coverage of - 2 - {00534693.1 } not less than an aggregate of Two Million Dollars ($2,000,000.00) including umbrella coverage, if any, written by one or more responsible insurance carriers licensed to do business in the state in which the Parcels are located. The liability of each Owner under this Easement Agreement shall be limited to each Owner's respective Parcel that is burdened or benefited by this Easement Agreement and no partner, officer, manager, shareholder, member or director of an Owner shall have any liability with respect to the covenants contained herein, provided that the Owners and their respective partners, agents, officers, directors, managers, shareholders, members, employees or tenants, shall not be liable to the other for damage to or loss, theft, robbery, pilferage or loss of the use of property, or for injury or death to persons caused by any persons entering the Access Easement Area. 5. Taxes and Assessments. Each Owner shall pay all taxes, assessments, or charges of any type levied or made by any governmental body or agency with respect to its Parcel. 6. No Rights in Public; No Implied Easements. Except as set forth in Paragraph 2.1(c), nothing contained herein shall be construed as creating any rights in the general public or as dedicating for public use any portion of Parcels A or Parcel B. No easements, except those expressly set forth in paragraph 2, shall be implied by this Easement Agreement; in that regard, and without limiting the foregoing, no easements for signage are granted or implied. 7. Remedies and Enforcement. 7.1 All Legal and Equitable Remedies Available. In the event of a breach or threatened breach by any Owner or its Permittees of any of the terms, covenants, restrictions or conditions hereof, the other Owner(s) shall be entitled forthwith to full and adequate relief by injunction and/or all such other available legal and equitable remedies from the consequences of such breach, including payment of any amounts due and/or specific performance. 7.2 Self-Help. In addition to all other remedies available at law or in equity, upon the failure of a defaulting Owner to cure a breach of this Easement Agreement within thirty (30) days following written notice thereof by an Owner (unless, with respect to any such breach the nature of which cannot reasonably be cured within such 30-day period, the defaulting Owner commences such cure within such 30- day period and thereafter diligently prosecutes such cure to completion), any Owner shall have the right to perform such obligation contained in this Easement Agreement on behalf of such defaulting Owner and be reimbursed by such defaulting Owner upon demand for the reasonable costs thereof together with interest at the prime rate charged from time to time by Bank One, N.A. (its successors or assigns), plus two percent (2%) (not to exceed the maximum rate of interest allowed by law). Notwithstanding the foregoing, in the event of (i) an emergency, (ii) blockage or material impairment of the easement rights, and/or (iii) the unauthorized parking of vehicles on a Parcel, an Owner may immediately cure the same and be reimbursed by the other Owner upon demand for the - 3 - {00534693.1 } reasonable cost thereof together with interest at the prime rate, plus two percent (2%), as above described. 7.3 Lien Rights. Any claim for reimbursement, including interest as aforesaid, and all costs and expenses including reasonable attorneys' fees awarded to any Owner in enforcing any payment in any suit or proceeding under this Easement Agreement shall be assessed against the defaulting Owner in favor of the prevailing party and Assessment Lien shall constitute a lien (the "") against the Parcel of the defaulting Owner until paid, effective upon the recording of a notice of lien with respect thereto in the official real estate records of Washington County, Minnesota; provided, however, that any such Assessment Lien shall be subject and subordinate to (i) liens for taxes and other public charges which by applicable law are expressly made superior, and (ii) all liens recorded in the official real estate records of Washington County, Minnesota prior to the date of recordation of said notice of lien. All liens recorded subsequent to the recordation of the notice of lien described herein shall be junior and subordinate to the Assessment Lien. Upon the timely curing by the defaulting Owner of any default for which a notice of lien was recorded, the party recording same shall record an appropriate release of such notice of lien and Assessment Lien. 7.4 Remedies Cumulative. The remedies specified herein shall be cumulative and in addition to all other remedies permitted at law or in equity. 7.5 No Termination For Breach. Notwithstanding the foregoing to the contrary, no breach hereunder shall entitle any Owner to cancel, rescind, or otherwise terminate this Easement Agreement. No breach hereunder shall defeat or render invalid the lien of any mortgage upon any Parcel made in good faith for value, but the easements, covenants, conditions and restrictions hereof shall be binding upon and effective against any Owner of such Parcel covered hereby whose title thereto is acquired by foreclosure, trustee's sale, or otherwise. 7.6 Irreparable Harm. In the event of a violation or threat thereof of any of the provisions of paragraph 2 of this Easement Agreement, each Owner agrees that such violation or threat thereof shall cause the nondefaulting Owner and/or its Permittees to suffer irreparable harm and such nondefaulting Owner and its Permittees shall have no adequate remedy at law. As a result, in the event of a violation or threat thereof of any of the provisions of paragraph 2 of this Easement Agreement, the nondefaulting Owner, in addition to all remedies available at law or otherwise under this Easement Agreement, shall each be entitled to injunctive or other equitable relief to enjoin a violation or threat thereof of paragraph 2 of this Easement Agreement. 8. Term. The easements, covenants, conditions and restrictions contained in this Easement Agreement shall be effective commencing on the date of recordation of this Easement Agreement in the official real estate records of Washington County, Minnesota and shall - 4 - {00534693.1 } remain in full force and effect thereafter in perpetuity, unless this Easement Agreement is modified, amended, canceled or terminated by the written consent of all then record Owners of Parcels A and Parcel B in accordance with paragraph 9.2 hereof. 9. Miscellaneous. 9.1 Attorneys' Fees. In the event a party institutes any legal action or proceeding for the enforcement of any right or obligation herein contained, the prevailing party after a final adjudication shall be entitled to recover its costs and reasonable attorneys' fees incurred in the preparation and prosecution of such action or proceeding. 9.2 Amendment. PHS/CG and the City agree that the provisions of this Easement Agreement may be modified or amended, in whole or in part, or terminated, only by the written consent of all record Owners of Parcels A and Parcel B, evidenced by a document that has been fully executed and acknowledged by all such record Owners and recorded in the official real estate records of Washington County, Minnesota. 9.3 Consents. Wherever in this Easement Agreement the consent or approval of an Owner is required, unless otherwise expressly provided herein, such consent or approval shall not be unreasonably withheld or delayed. Any request for consent or approval shall: (a) be in writing; (b) specify the section hereof which requires that such notice be given or that such consent or approval be obtained; and (c) be accompanied by such background data as is reasonably necessary to make an informed decision thereon. The consent of an Owner under this Easement Agreement, to be effective, must be given, denied or conditioned expressly and in writing. 9.4 No Waiver. No waiver of any default of any obligation by any party hereto shall be implied from any omission by the other party to take any action with respect to such default. 9.5 No Agency. Nothing in this Easement Agreement shall be deemed or construed by either party or by any third person to create the relationship of principal and agent or of limited or general partners or of joint venturers or of any other association between the parties. 9.6 Covenants to Run with Land. It is intended that each of the easements, covenants, conditions, restrictions, rights and obligations set forth herein shall run with the land and create equitable servitudes in favor of the real property benefited thereby, shall bind every person having any fee, leasehold or other interest therein and shall inure to the benefit of the respective parties and their successors, assigns, heirs and personal representatives. If either Parcel is subdivided into two or more parts by ownership, the rights and obligations arising under this Easement Agreement shall benefit and bind only those portions of the Parcel which are - 5 - {00534693.1 } contiguous to the easements described in this Easement Agreement or which have appurtenant rights to the easements described in this Easement Agreement, and the owners thereof, and the other portions of the Parcel and the owners thereof shall not be benefited or burdened by such rights or obligations. Each Owner shall be liable under this Easement Agreement only for such obligations as accrue during its respective period of ownership of the Parcel. 9.7 Grantee's Acceptance. The grantee of any Parcel or any portion thereof, by acceptance of a deed conveying title thereto or the execution of a contract for the purchase thereof, whether from an original party or from a subsequent owner of such Parcel, shall accept such deed or contract upon and subject to each and all of the easements, covenants, conditions, restrictions and obligations contained herein. By such acceptance, any such grantee shall for itself and its successors, assigns, heirs, and personal representatives, covenant, consent, and agree to and with the other party, to keep, observe, comply with, and perform the obligations and agreements set forth herein with respect to the property so acquired by such grantee. 9.8 Severability. Each provision of this Easement Agreement and the application thereof to Parcels A and Parcel B are hereby declared to be independent of and severable from the remainder of this Easement Agreement. If any provision contained herein shall be held to be invalid or to be unenforceable or not to run with the land, such holding shall not affect the validity or enforceability of the remainder of this Easement Agreement. In the event the validity or enforceability of any provision of this Easement Agreement is held to be dependent upon the existence of a specific legal description, the parties agree to promptly cause such legal description to be prepared. Ownership of both Parcels by the same person or entity shall not terminate this Easement Agreement nor in any manner affect or impair the validity or enforceability of this Easement Agreement. 9.9 Time of Essence. Time is of the essence of this Easement Agreement. 9.10 Entire Agreement. This Easement Agreement contains the complete understanding and agreement of the parties hereto with respect to all matters referred to herein, and all prior representations, negotiations, and understandings are superseded hereby. 9.11 Notices. Notices or other communication hereunder shall be in writing and shall be sent certified or registered mail, return receipt requested, or by other national overnight courier company, or personal delivery. Notice shall be deemed given upon receipt or refusal to accept delivery. Each Owner may change from time to time their respective address for notice hereunder by like notice to the other Owner(s). The notice addresses of PHS/CG and the City are as follows: - 6 - {00534693.1 } PHS/CG: PHS/CG Center, LLC Attn: Pam Belz 2845 Hamline Avenue North, Suite 100 Roseville, Minnesota 55113 The City: City of Cottage Grove, Minnesota Attn: Charlene Stevens Cottage Grove City Hall 12800 Ravine Parkway South Cottage Grove, Minnesota 55016 9.12 Governing Law. The laws of the State of Minnesota shall govern the interpretation, validity, performance, and enforcement of this Easement Agreement. 9.13 Estoppel Certificates. Each Owner, within thirty (30) days of its receipt of a written request from the other Owner, shall from time to time provide the requesting Owner, a certificate binding upon such Owner stating: (a) to the best of such Owner’s knowledge, whether any party to this Easement Agreement is in default or violation of this Easement Agreement and if so identifying such default or violation; and (b) that this Easement Agreement is in full force and effect and identifying any amendments to the Easement Agreement as of the date of such certificate. 9.14 Bankruptcy. In the event of any bankruptcy affecting any Owner or occupant of any Parcel, the parties agree that this Easement Agreement shall, to the maximum extent permitted by law, be considered an agreement that runs with the land and that is not rejectable, in whole or in part, by the bankrupt person or entity. \[Signatures begin on next page\] - 7 - {00534693.1 } IN WITNESS WHEREOF , PHS/CG and the City have executed this Easement Agreement as of the date first written above. PHS/CG CENTER, LLC By:_________________________________ Its:_________________________________ STATE OF MINNESOTA ) ) ss. COUNTY OF____________ ) This instrument was acknowledged before me on this ____ day of ________________, 2016, by ____________________, the _________________ of PHS/CG Center, LLC, a Minnesota limited liability company, on behalf of said limited liability company. ____________________________________ Notary Public \[Signature page 1 of 2 to Access Easement Agreement\] - 8 - {00534693.1 } CITY OF COTTAGE GROVE By: ____________________________ Myron Bailey, Mayor By: ____________________________ Joseph Fischbach, City Clerk STATE OF MINNESOTA ) ) ss. COUNTY OF ____________ ) I certify that I know or have satisfactory evidence that Myron Bailey and Joseph Fischbach are the persons who appeared before me, and said persons acknowledged that said persons signed this instrument, on oath stated that said persons were authorized to execute the instrument and acknowledged them as the Mayor and City Clerk, respectively, of the City of Cottage Grove, a municipal corporation, to be their free and voluntary act for the uses and purposes mentioned in the instrument. Dated this _____ day of __________________, 2016. ____________________________________ (Signature of Notary) \[Signature page 2 of 2 to Access Easement Agreement\] - 9 - {00534693.1 } EXHIBIT A LEGAL DESCRIPTION OF PARCELS A Lot 3, Block 1, PHS COTTAGE GROVE INC. 3RD ADDITION, according to the recorded plat thereof on file and of record in the office of the Registrar of Titles in and for the County of Washington and State of Minnesota. {00534693.1 } EXHIBIT B LEGAL DESCRIPTION OF PARCEL B Lot 5, Block 1, PHS COTTAGE GROVE INC. 3RD ADDITION, according to the recorded plat thereof, Washington County, Minnesota. {00534693.1 } EXHIBIT C ACCESS EASEMENT AREA DD EPICTION AND ESCRIPTION {00534693.1 } Warranty Deed for Hadley right of way WARRANTY DEED DEED TAX DUE: $_______.___ Date: ___________________ City of Cottage Grove FOR VALUABLE CONSIDERATION,,amunicipal corporation, PHS/CG Center, LLC Grantor, hereby conveys and warrants to ,a Minnesota limited liability company, Grantee, real property in Washington County, Minnesota, described as follows: That part of Parcel 42Nshown on the plat designated as MINNESOTA DEPARTMENT OF TRANSPORTATION RIGHT-OF-WAY PLAT NO. 82-27 on file and of record in the office of the Registrar of Titles in and for Washington County, Minnesota, described as beginning at monument B9 of said MINNESOTA DEPARTMENT OF TRANSPORTATION RIGHT-OF- WAY PLAT NO. 82-27; thence South 05 degrees 21 minutes 08 seconds East, assumed bearing, along a westerly line of said Parcel 42N a distance of 64.45 feet to monument B8 of said plat; thence South 37 degrees 02 minutes 44 seconds East along a southwesterly line of said Parcel 42N a distance of 70.58 feet to monument B7 of said plat; thence North 84 degrees 38 minutes 52 seconds East along a southerly line of said Parcel 42N a distance of 48.80 feet to monument B6 ofsaid plat; thence northwesterly 151.48 feet, along a non-tangential curve, concave to the southwest, having a radius of 798.08 feet, a central angle of 10 degrees 52 minutes 29 seconds and a chord the bears North 39 degrees 56 minutes 53 seconds West to the point of beginning. Check here if all or part of the described real property is Registered (Torrens) together with all hereditaments and appurtenances belonging thereto, subject to the following exceptions: None. Check box if applicable: XThe Grantor certifies that the Grantor does not know of any wells on the described real property. A well disclosure certificate accompanies this document. I am familiar with the property described in this instrument and I certify that the status and number of wells on the described real property have not changed since the last previously filed well disclosure certificate. 1 City of Cottage Grove (A municipal corporation) ________________________________ ______________________________ SignatureSignature Myron Bailey Joseph Fischbach Name (print) Name (print) MayorCity Clerk TitleTitle STATE OF MINNESOTA ) ) ss. COUNTY OF ___________ ) The foregoing instrument was acknowledged before me this _____day of ________________, Myron BaileyJoseph Fischbach 2016, by and , the Mayor and City Clerk, respectively, of the City of Cottage , a municipal corporation, on behalf of the City of Cottage. _________________________________________ SIGNATURE OF PERSON TAKINGACKNOWLEDGMENT Tax Statements for the real property Notarial Stamp or Seal (or otherTitle or Rank) described in this instrument should be sent to (include name and address of Grantee): PHS/CG Center, LLC 2845 Hamline Avenue North Roseville, Minnesota 55113 This Instrument Drafted By: Leonard, O’Brien, Spencer, Gale & Sayre, Ltd. 100 South Fifth Street, Suite 2500 Minneapolis, Minnesota 55402 (612) 332-1030 Reference: GCS 2 Warranty Deed for Lot 3 (fire station) WARRANTY DEED DEED TAX DUE: $_______.___ Date: ___________________ City of Cottage Grove FOR VALUABLE CONSIDERATION,,amunicipal corporation, PHS/CG Center, LLC Grantor, hereby conveys and warrants to ,a Minnesota limited liability company, Grantee, real property in Washington County, Minnesota, described as follows: Lot 3, Block 1, PHS COTTAGE GROVE INC 3RDADDITION, according to the plat thereof on file and of record in the office of the Registrar of Titles in and for the County of Washington and State of Minnesota. Check here if all or part of the described real property is Registered (Torrens) together with all hereditaments and appurtenances belonging thereto, subject to the following exceptions: None. Check box if applicable: XThe Grantor certifies that the Grantor does not know of any wells on the described real property. A well disclosure certificate accompanies this document. I am familiar with the property described in this instrument and I certify that the status and number of wellson the described real property have not changed since the last previously filed well disclosure certificate. 1 City of Cottage Grove (A municipal corporation) ________________________________ ______________________________ SignatureSignature Myron Bailey Joseph Fischbach Name (print) Name (print) MayorCity Clerk TitleTitle STATE OF MINNESOTA ) ) ss. COUNTY OF ___________ ) The foregoing instrument was acknowledged before me this _____day of ________________, Myron BaileyJoseph Fischbach 2016, by and , the Mayor and City Clerk, respectively, of the City of Cottage , a municipal corporation, on behalf of the City of Cottage. _________________________________________ SIGNATURE OF PERSON TAKINGACKNOWLEDGMENT Tax Statements for the real property Notarial Stamp or Seal (or otherTitle or Rank) described in this instrument should be sent to (include name and address of Grantee): PHS/CG Center, LLC 2845 Hamline Avenue North Roseville, Minnesota 55113 This Instrument Drafted By: Leonard, O’Brien, Spencer, Gale & Sayre, Ltd. 100 South Fifth Street, Suite 2500 Minneapolis, Minnesota 55402 (612) 332-1030 Reference: GCS 2 Warranty Deed forOutlot A WARRANTY DEED DEED TAX DUE: $_______.___ Date:___________________ PHS/CG Center, LLC FOR VALUABLE CONSIDERATION,,a Minnesota limited liability City of Cottage Grove company,Grantor, hereby conveys and warrants to ,a municipal corporation, Grantee, real property in WashingtonCounty, Minnesota, described as follows: Outlot A, PHS COTTAGE GROVE INC 2NDADDITION, according to the plat thereof on file and of record in the office of the Registrar of Titles in and for the County of Washington and State of Minnesota. PID: 18.027.21.11.0068 Check here if all or part of the described real property is Registered (Torrens) together with all hereditaments and appurtenances belonging thereto, subject to the following exceptions: None. Check box if applicable: XThe Grantor certifies that the Grantor does not know of any wells on the described real property. A well disclosure certificate accompanies this document. I am familiar with the property described in this instrument and I certify that the status and number of wells on the described real property have not changed since the last previously filed well disclosure certificate. 1 PHS/CG Center, LLC (AMinnesota limited liability company) ________________________________ Signature ________________________________ Name (print) ________________________________ Title STATE OF MINNESOTA) ) ss. COUNTY OF ___________) The foregoing instrument was acknowledged before me this _____day of ________________, PHS/CG Center, LLC 2016, by________________, the ________________,of , a Minnesota PHS/CG Center, LLC limited liability company,on behalf of . _________________________________________ SIGNATURE OF PERSON TAKINGACKNOWLEDGMENT Tax Statements for the real property Notarial Stamp or Seal (or otherTitle or Rank) described in this instrument should be sent to (include name and address of Grantee): City of Cottage Grove Cottage Grove City Hall 12800 Ravine Parkway South Cottage Grove, Minnesota 55016 This Instrument Drafted By: Korine L. Land (262432) LeVander, Gillen & Miller, P.A. 633 South Concord Street, Suite 400 South St. Paul, MN 55075 TITLE NOT EXAMINED 2 Access and Utility Easement Agreement ______________________________________________________________________________ (FRUO) OR ECORDING SE NLY ACCESS AND UTILITY EASEMENT AGREEMENT THIS ACCESS AND UTILITY EASEMENT AGREEMENTEasementAgreement (this "") PHS/CGCenter, is made and entered into this _____ day of December, 2016, byand between LLCPHS/CGPHS/Cottage Grove, Inc. , a Minnesota limited liability company (""), and , a PHS/Cottage Grove Minnesota nonprofit corporation (""). RECITALS A.PHS/CG is the owner of those certain parcels of real property situated in the City of Cottage Grove, County of Washington, State of Minnesota, more particularly described ParcelsA on Exhibit A attached hereto and incorporated herein by this reference(""), and PHS/Cottage Grove is the owner of that certain real property situated in the City of Cottage Grove, County of Washington, State of Minnesota, more particularly described Parcel B on Exhibit B attached hereto and incorporated herein by this reference ("") Parcels (ParcelsA and Parcel Barecollectively referred to herein as the ""). B.PHS/CG and PHS/Cottage Grove desire to impose certain easements upon the Parcels, for the mutual and reciprocal benefit and complement of the Parcels and the present and future owners and occupants thereof, on the terms and conditions hereinafter set forth. C.PHS/CG and PHS/Cottage Grove also desire to convey to the City of Cottage Grove drainage and utility rights within the utility easement area described and depicted on Exhibit Cto this Easement Agreementconveyed and created by this Easement Agreement, as hereinafter provided. NOW, THEREFORE , in consideration of the above premises and of the covenants herein contained, the parties hereto hereby declare that the Parcels and all present and future owners and occupants of the Parcels shall be and hereby are subject to the terms, covenantsandeasements hereinafter set forth in this EasementAgreement, so that said Parcels shall be maintained, kept, sold and used in full compliance with and subject to this EasementAgreement and, in connection therewith, PHS/CG and PHS/Cottage Grove covenantand agree as follows: -1- {00533945.1 } AGREEMENTS 1.Definitions.For purposes hereof: OwnerOwners (a)The term "" or "" shall mean PHS/CG and PHS/Cottage Grove and any and all successors or assigns of such persons as the owner or owners of fee simple title to all or any portion of the real property covered hereby, whether by sale, assignment, inheritance, operation of law, trustee's sale, foreclosure, or otherwise, but not including the holder of any lien or encumbrance on such real property. ParcelParcels (b)The term "" or "" shall mean each separately identified parcel of real property now constituting a part of the real property subjected to this EasementAgreement as described on Exhibit A, that is, ParcelsA and on Exhibit B, that is, Parcel B, and any future subdivisions thereof. Permittees (c)The term "" shall mean the tenant(s), resident(s) or occupant(s) of a Parcel, and the respective employees, agents, contractors, customers, invitees and licensees of (i) the Owner of such Parcel, and/or (ii) such tenant(s), resident(s) or occupant(s). Common Area (d)The term "" shall mean those portions of ParcelsA and Parcel B that are outside of exterior walls of buildings, drive-through areas or other structures from time to time located on the Parcels, and which are either unimproved, or are improved as (without limitation) parking areas, landscaped areas, driveways, roadways, walkways, light standards, curbing, paving, entrances, exits and other similar exterior site improvements. Utility Easement Area (e)The term "" shall mean those portions of ParcelsA and Parcel B legallydescribed and depicted on Exhibit Cattached hereto and incorporated herein. Easement Area (f)The term "" shall mean the Utility Easement Area and any easements over the Common Areas grantedin this EasementAgreement. 2.Easements. 2.1Grant of Reciprocal Easements. Subject to any express conditions, limitations or reservations contained herein, PHS/CG and PHS/Cottage Grove hereby declare that the Parcels, and all Owners and Permittees of the Parcels, shall be benefited and burdened by the following nonexclusive, perpetual and reciprocal easements which are hereby imposed upon the Parcels and all present and future Owners and Permittees of the Parcels: -2- {00533945.1 } (a)Access.An easement in favor of each Parcel for reasonable access, ingress and egress overall paved driveways, roadways,walkways and parking areas as presently or hereafter constructed and constituting a part of the Common Area of either Parcel so as to provide for the passage of motor vehicles and pedestrians over all portions of the Common Area of either Parcel intended for such purposes, and to and from all abutting streets or rights of way furnishing access to either Parcel. (b) Drainage and Utility.An easement under and across the Utility Easement Area for the installation, operation, maintenance, repair and replacement of water quality treatment ponds, infiltration raingardenponds, storm water drainage ponds, drainage and storage of surface water, catch basin, water mains, storm drains, sewers, water sprinkler system lines,telephone or electrical conduits or systems, fiber optic communication lines, cable, gas mains and other utility facilities necessary for the orderly development and operation of the Common Areas and each building from Utilities time to time located within the Parcels(the ""). Except in an emergency, the right of any Owner and its Permittees to enter upon the Parcel of another Owner for the purpose of maintaining, repairing or replacing any of the Utilities shall be limited to private utilities and the exercise of any right pursuant to such easements shall be conditioned upon providing reasonable advance written notice to the other Owner as to the time and manner of entry. All such systems, structures, mains, sewers, conduits, lines and other public utilities shall be installed and maintained below the ground level or surface of the Parcel (except for such parts thereof that cannot and are not intended to be placed below the surface, such as transformers and control panels, which shall be placed in such location as approved by the Owner of the affected Parcel).Driveways, roadways, walkways, parking areas, walkways, curbs, gutters, landscaping and similar improvements may be located in the Utility EasementArea. (c)City Drainage and UtilityEasements.An easement for the benefit of the City of Cottage Grove under and across the Utility Easement Area for theoperation, maintenance, repair and replacement of water quality treatment ponds, infiltration raingardenponds, storm water drainage ponds, drainageand storage of surface water, catch basin, water mains, storm drains, sanitary sewers, water sprinkler system lines, telephone or electrical conduits or systems, fiber optic communication lines, cable, gas mains and other utility facilities necessary for the orderly development and operation of the Common Areas and each building from time to time located within the Parcels. (d)General Application.All systems, structures, mains, sewers, conduits, lines and other public utilities shall be installed and maintained below the ground level or surface of the Parcel (except for such parts thereof that cannot and are not intended to be placed below the surface, such as transformers and control panels, which shall be placed in such location as approved by the Owner of the affected Parcel). -3- {00533945.1 } 2.2Reasonable Use of Easements. The easements herein above granted shall be used and enjoyed by each Owner and its Permittees in such a manner so as not to unreasonably interfere with, obstruct or delay the conduct and operations of the business and activities of any other Owner or its Permittees at any time conducted on its Parcel, including, without limitation, public access to and from said business, and the receipt or delivery of merchandise in connection therewith. 3.Maintenance. Each Owner of a Parcel covenants at all times during the term of this Easement Agreement to maintain or cause to be maintained at its expense all Common Areas and the improvements located on its Parcel in good working order, condition and repair. 4.Insurance. Throughout the term of this EasementAgreement, each Owner shall procure and maintain (or cause to be procured and maintained) general and/or comprehensive public liability and property damage insurance against claims for personal injury,death, or property damage occurring upon such Owner's Parcel, with single limit coverage of not less than an aggregate of TwoMillion Dollars ($2,000,000.00) including umbrella coverage, if any, written by one or more responsible insurance carriers licensed to do business in the state in which the Parcels are located. The liability of each Owner under this EasementAgreementshall be limited to each Owner's respective Parcel that is burdened or benefitedby this EasementAgreementand no partner, officer, manager, shareholder, member or director of an Owner shall have any liability with respect to the covenants contained herein, provided that the Owners and their respective partners, agents, officers, directors, managers, shareholders, members, employees or tenants, shall not be liable to the other for damage to or loss, theft, robbery, pilferage or loss of the use of property, or for injury or deathto persons caused by any persons entering the Easement Area. 5.Taxes and Assessments. Each Owner shall pay all taxes, assessments, or charges of any type levied or made by any governmental body or agency with respect to its Parcel. 6.No Rights in Public; No Implied Easements.Except as set forth in Paragraph 2.1(c), nothing contained herein shall be construed as creating any rights in the general public or as dedicating for public use any portion of ParcelsA or Parcel B. No easements, except those expressly set forth in paragraph 2, shall be implied by this EasementAgreement; in that regard, and without limiting the foregoing, no easements for signage are granted or implied. 7.Remedies and Enforcement. 7.1All Legal and Equitable Remedies Available. In the event of a breach or threatened breach by any Owner or its Permittees of any of the terms, covenants, restrictions or conditions hereof, the other Owner(s) shall be entitled forthwith to full and adequate relief by injunction and/or all such other available legal and equitable remedies from the consequences of such breach, including payment of any amounts due and/or specific performance. -4- {00533945.1 } 7.2Self-Help. In addition to all other remedies available at law or in equity, upon the failure of a defaulting Owner to cure a breach of this EasementAgreementwithin thirty (30) days following written notice thereof by an Owner (unless, with respect to any such breach the nature of which cannot reasonably be cured within such 30-day period, the defaulting Owner commences such cure within such 30- day period and thereafter diligently prosecutes such cure to completion), any Owner shall have the right to perform such obligation contained in this Easement Agreementon behalf of such defaulting Owner and be reimbursed by such defaulting Owner upon demand for the reasonable costs thereof together with interest at the prime rate charged from time to time by Bank One, N.A. (its successors or assigns), plus two percent (2%) (not to exceed the maximum rate of interest allowed by law). Notwithstanding the foregoing, in the event of (i) an emergency, (ii) blockage or material impairment of the easement rights, and/or (iii) the unauthorized parking of vehicles on a Parcel, an Owner may immediately cure the same and be reimbursed by the other Owner upon demand for the reasonable cost thereof together with interest at the prime rate, plus two percent (2%), as above described. 7.3Lien Rights. Any claim for reimbursement, including interest as aforesaid, and all costs and expenses including reasonable attorneys' fees awarded to any Owner in enforcing any payment in any suit or proceeding under this EasementAgreement shall be assessed against the defaulting Owner in favor of the prevailing party and Assessment Lien shall constitute a lien (the "") against the Parcel of the defaulting Owner until paid, effective upon the recording of a notice of lien with respect thereto in the official real estate records of Washington County, Minnesota; provided, however, that any such Assessment Lien shall be subject and subordinate to (i) liens for taxes and other public charges which by applicable law are expressly made superior, (ii) all liens recorded in the official real estate records of Washington County, Minnesota prior to the date of recordation of said notice of lien, and (iii) all leases entered into, whether or not recorded, prior to the date of recordation of said notice of lien. All liens recorded subsequent to the recordation of the notice of lien described herein shall be junior and subordinate to the Assessment Lien. Upon the timely curing by the defaulting Owner of any default for which a notice of lien was recorded, the party recording same shall record an appropriate release of such notice of lien and Assessment Lien. 7.4Remedies Cumulative. The remedies specified herein shall be cumulative and in addition to all other remedies permitted at law or in equity. 7.5No Termination For Breach.Notwithstanding the foregoing to the contrary, no breach hereunder shall entitle any Owner to cancel, rescind, or otherwise terminate this EasementAgreement. No breach hereunder shall defeat or render invalid the lien of any mortgage upon any Parcel made in good faith for value, but the easements, covenants, conditions and restrictions hereof shall be binding upon -5- {00533945.1 } and effective against any Owner of such Parcel covered hereby whose title thereto is acquired by foreclosure, trustee's sale, or otherwise. 7.6Irreparable Harm. In the event of a violation or threat thereof of any of the provisions of paragraph 2of this EasementAgreement, each Owner agrees that such violation or threat thereof shall cause the nondefaulting Owner and/or its Permittees to suffer irreparable harm and such nondefaulting Owner and its Permittees shall have no adequate remedy at law. As a result, in the event of a violation or threat thereof of any of the provisions of paragraph 2of this EasementAgreement, the nondefaulting Owner,in addition to all remedies available at law or otherwise under this Easement Agreement, shall each be entitled to injunctive or other equitable relief to enjoin a violation or threat thereof of paragraph2of this Easement Agreement. 8.Term.The easements, covenants, conditions and restrictions contained in this Easement Agreementshall be effective commencing on the date of recordation of this Easement Agreementin the official real estate records of Washington County, Minnesota and shall remain in full force and effect thereafter in perpetuity, unless this EasementAgreementis modified, amended, canceled or terminated by the written consent of all then record Owners of ParcelsA and Parcel B in accordance with paragraph 9.2hereof. 9.Miscellaneous. 9.1Attorneys' Fees. In the event a party institutes any legal action or proceeding for the enforcement of any right or obligation herein contained, the prevailing party after a final adjudication shall be entitled to recover its costs andreasonable attorneys' fees incurred in the preparation and prosecution of such action or proceeding. 9.2Amendment.PHS/CG and PHS/Cottage Groveagree that the provisions of this EasementAgreementmay be modified or amended, in whole or in part, or terminated, only by the written consent of all record Owners of ParcelsA and Parcel B, evidenced by a document that has been fully executed and acknowledged by all such record Owners and recorded in the official real estate records of Washington County, Minnesota. 9.3Consents. Wherever in this EasementAgreementthe consent or approval of an Owner is required, unless otherwise expressly provided herein, such consent or approval shall not be unreasonably withheld or delayed. Any request for consent or approval shall: (a) be in writing; (b) specify the section hereof which requires that such notice be given or that such consent or approval be obtained; and (c) be accompanied by such background data as is reasonably necessary to make an informed decision thereon. The consent of an Owner under this Easement Agreement, to be effective, must be given, denied or conditioned expressly and in writing. -6- {00533945.1 } 9.4No Waiver. No waiver of any default of any obligation by any party hereto shall be implied from any omission by the other party to take any action with respect to such default. 9.5No Agency. Nothing in this EasementAgreementshall be deemed or construed by either party or by any third person to create the relationship of principal and agent or of limited or general partners or of joint venturers or of any other association between the parties. 9.6Covenants to Run with Land.It is intended that each of the easements, covenants, conditions, restrictions, rights and obligations set forth herein shall run with the land and create equitable servitudes in favor of the real property benefited thereby, shall bind every person having any fee, leasehold or other interest therein and shall inure to the benefit of the respective parties and their successors, assigns, heirs and personal representatives.If either Parcel is subdivided into two or more parts by ownership, the rights and obligations arising under this Easement Agreement shall benefit and bind only those portions of the Parcel which are contiguous to the easements described in this Easement Agreement or which have appurtenant rights to the easements described in this Easement Agreement, and the owners thereof, and the other portions of the Parcel and the owners thereof shall not be benefited or burdened by such rights or obligations. Each Owner shall be liable under this Easement Agreement only for such obligations as accrue during its respective period of ownership of the Parcel. 9.7Grantee's Acceptance.The grantee of any Parcel or any portion thereof, by acceptance of a deed conveying title thereto or the execution of a contract for the purchase thereof, whether from an original party or from a subsequent owner of such Parcel, shall accept such deed or contract upon and subject to each and all of the easements, covenants, conditions, restrictions and obligations contained herein. By such acceptance, any such grantee shall for itself and its successors, assigns, heirs, and personal representatives, covenant, consent, and agree to and with the other party, to keep, observe, comply with, and perform the obligations and agreements set forth herein with respect to the property so acquired by such grantee. 9.8Severability.Each provision of this EasementAgreementand the application thereof to ParcelsA and Parcel B are hereby declared to be independent of and severable from the remainder of this EasementAgreement. If any provision contained herein shall be heldto be invalid or to be unenforceable or not to run with the land, such holding shall not affect the validity or enforceability of the remainder of this EasementAgreement. In the event the validity or enforceability of any provision of this EasementAgreementis held to be dependent upon the existence of a specific legal description, the parties agree to promptly cause such legal description to be prepared. Ownership of both Parcels by the same person or -7- {00533945.1 } entity shall not terminate this EasementAgreementnor in any manner affect or impair the validity or enforceability of this EasementAgreement. 9.9Time of Essence. Time is of the essence of this EasementAgreement. 9.10Entire Agreement. This EasementAgreementcontains the complete understanding and agreement of the parties hereto with respect to all matters referred to herein, and all prior representations, negotiations, and understandings are superseded hereby. 9.11Notices. Notices or other communication hereunder shall be in writing and shall be sent certified or registered mail, return receipt requested, or by other national overnight courier company, or personal delivery. Notice shall be deemed given upon receipt or refusal to accept delivery. Each Ownermay change from time to time their respective address for notice hereunder by like notice to the other Owner(s). The notice addressesof PHS/CG and PHS/Cottage Grove areas follows: PHS/CG:PHS/CGCenter,LLC Attn:Pam Belz 2845 Hamline AvenueNorth, Suite 100 Roseville, Minnesota 55113 PHS/Cottage Grove:PHS/Cottage Grove, Inc. Attn: Mark T. Meyer 2845 Hamline Avenue North Roseville, Minnesota 55113 9.12Governing Law. The laws of the State of Minnesotashall govern the interpretation, validity, performance, and enforcement of this Easement Agreement. 9.13Estoppel Certificates. Each Owner, within thirty (30) days of its receipt of a written request from the other Owner, shall from time to time provide the requesting Owner, a certificate binding upon such Owner stating: (a) to the best of such Owner’s knowledge, whether any party to this EasementAgreementis in default or violation of this EasementAgreementand if so identifying such default or violation; and (b) that this EasementAgreementis in full force and effect and identifying any amendments to the EasementAgreement as of the date of such certificate. 9.14Bankruptcy. In the event of any bankruptcy affecting any Owner or occupant of any Parcel, the parties agree that this EasementAgreementshall, to the maximum extent permitted by law, be considered an agreement that runs with the land and that is not rejectable, in whole or in part, by the bankrupt person or entity. -8- {00533945.1 } IN WITNESS WHEREOF ,PHS/CG and PHS/Cottage Grove have executed this Easement Agreementas of the date first written above. PHS/CG Center, LLC By:_________________________________ Its:_________________________________ STATE OF MINNESOTA) )ss. COUNTY OF____________) This instrument was acknowledged before me on this ____ day of ________________, 2016, by ____________________, the _________________ of PHS/CG Center, LLC, a Minnesota limited liability company, on behalf of said limited liability company. ____________________________________ Notary Public \[Signature page 1 of 2 to Access and Utility Easement Agreement\] -9- {00533945.1 } PHS/Cottage Grove, Inc. By: ____________________________ Mark T. Meyer Its:Chief Financial Officer STATE OF MINNESOTA) )ss. COUNTY OF____________) This instrument was acknowledged before me on this ____ day of ________________, 2016, by Mark T. Meyer, the Chief Financial Officer of PHS/Cottage Grove, Inc., a Minnesota non-profit corporation, on behalf of said non-profit corporation. ____________________________________ Notary Public \[Signature page 2of 2 to Access and Utility Easement Agreement\] -10- {00533945.1 } EXHIBIT A LEGAL DESCRIPTION OFPARCELSA Lots 1, 2and 3, Block 1, PHS COTTAGE GROVE INC. 3RD ADDITION, according to the recorded plat thereof on file and of record in the office of the Registrar of Titles in and for the County of Washington and State of Minnesota. {00533945.1 } EXHIBIT B LEGAL DESCRIPTION OFPARCEL B Lot 1, Block One, PHS COTTAGE GROVE INC., according to the recorded plat thereof, Washington County, Minnesota. {00533945.1 } EXHIBIT C UTILITY EASEMENT AREA DD EPICTION AND ESCRIPTION {00533945.1 } CONSENT TO ACCESS AND UTILITY EASEMENT AGREEMENT Mortgagee Wells Fargo Bank, National Association, a national banking association (""), as mortgagee under that certain ___________ Mortgage _______________________ , executed by PHS/Cottage Grove, Inc. in favor of Mortgagee, dated _____________________, recorded in the office of the Registrar of Titles, Washington County, Minnesota on __________________, as Document No. ________________ (together with any modifications or supplements thereto, the Mortgage ""), hereby consents to the foregoing Access and Utility Easement Agreement by and between PHS/CG Center, LLCandPHS/Cottage Grove, Inc., it being Mortgagee's intention that by executing and acknowledging this Consent, the same shall be as if it had executed and acknowledged the Access and Utility Easement Agreement. \[Signatures on next page\] {00533945.1 } Wells Fargo Bank, National Association (A national banking association) By:_________________________________ Its:_________________________________ STATE OF ______________) ) ss. COUNTY OF ____________) The foregoing instrument was acknowledged before me this _____ day of _______________, 20___, by __________________________________, the ___________________ of Wells Fargo Bank, National Association, a national banking association, on behalf of said national banking association. ___________________________________ Notary Public This instrument drafted by: Leonard, O'Brien, Spencer, Gale & Sayre, Ltd. 100 South Fifth Street, Suite 2500 Minneapolis, Minnesota 55402 (612) 332-1030 Reference: GCS \[Signature page to Consent to Access and Utility Easement Agreement\] {00533945.1 } Drainageand Utility Easement Agreement ______________________________________________________________________________ (FRUO) ORECORDING SENLY DRAINAGE AND UTILITY EASEMENT AGREEMENT THIS DRAINAGE AND UTILITY EASEMENT AGREEMENTEasement (this " Agreement ") is made and entered into this _____ day of December, 2016, by and between PHS/CG Center, LLCPHS/CGCity of , a Minnesota limited liability company (""), and the Cottage GroveCity , a municipal corporation (the ""). RECITALS A.PHS/CG is the owner of that certain parcel of real property situated in the City of Cottage Grove, County of Washington, State of Minnesota, more particularly described on Parcels A Exhibit A attached hereto and incorporated herein by this reference (""), and the City is the owner of that certain real property situated in the City of Cottage Grove, County of Washington, State of Minnesota, more particularly described on Exhibit B Parcel B attached hereto and incorporated herein by this reference ("") (Parcels A and Parcels Parcel B are collectively referred to herein as the ""). B.PHS/CG and the City desire to impose a drainage and utility easement upon the Parcels, for the mutual and reciprocal benefit and complement of the Parcels and the present and future owners and occupants thereof, on the terms and conditions hereinafter set forth within the utility easement area described and depicted on Exhibit C to this Easement Agreement, as hereinafter provided. NOW, THEREFORE , in consideration of the above premises and of the covenants herein contained, the parties hereto hereby declare that the Parcels and all present and future owners and occupants of the Parcels shall be and hereby are subject to the terms, covenants and easements hereinafter set forth in this Easement Agreement, so that said Parcels shall be maintained, kept, sold and used in full compliance with and subject to this Easement Agreement and, in connection therewith, PHS/CG and the City covenant and agree as follows: AGREEMENTS - 1 - {00534803.1 } 1. Definitions. For purposes hereof: OwnerOwners (a) The term "" or "" shall mean PHS/CG and the City and any and all successors or assigns of such persons as the owner or owners of fee simple title to all or any portion of the real property covered hereby, whether by sale, assignment, inheritance, operation of law, trustee's sale, foreclosure, or otherwise, but not including the holder of any lien or encumbrance on such real property. ParcelParcels (b) The term "" or "" shall mean each separately identified parcel of real property now constituting a part of the real property subjected to this Easement Agreement as described on Exhibit A, that is, Parcels A and on Exhibit B, that is, Parcel B, and any future subdivisions thereof. Permittees (c) The term "" shall mean the tenant(s), resident(s) or occupant(s) of a Parcel, and the respective employees, agents, contractors, customers, invitees and licensees of the Owner of such Parcel. Drainage and Utility Easement Area (d) The term "" shall mean those portions of Parcels A and Parcel B legally described and depicted on Exhibit C attached hereto and incorporated herein. 2. Easements. 2.1 Grant of Reciprocal Easements. Subject to any express conditions, limitations or reservations contained herein, PHS/CG and the City hereby declare that the Parcels, and all Owners and Permittees of the Parcels, shall be benefited and burdened by the following nonexclusive, perpetual and reciprocal easements which are hereby imposed upon the Parcels and all present and future Owners and Permittees of the Parcels: (a) Drainage and Utility. An easement under and across the Drainage and Utility Easement Area for the installation, operation, maintenance, repair and replacement of water quality treatment ponds, infiltration raingarden ponds, drainage and storage of surface water, catch basin, water mains, storm drains, sewers, water sprinkler system lines, telephone or electrical conduits or systems, fiber optic communication lines, cable, gas mains and other utility facilities necessary for the orderly development and operation of each building from time to time located within the Utilities Parcels (the ""). Except in an emergency, the right of any Owner and its Permittees to enter upon the Parcel of another Owner for the purpose of maintaining, repairing or replacing any of the Utilities shall be limited to private utilities and the exercise of any right pursuant to such easements shall be conditioned upon providing reasonable advance written notice to the other Owner as to the time and manner of entry. All such systems, structures, mains, sewers, conduits, lines and other public utilities shall be installed and maintained below the ground level or surface of the Parcel (except for such parts thereof that cannot and are not intended to be placed below the surface, such as transformers and control panels, which shall be placed in - 2 - {00534803.1 } such location as approved by the Owner of the affected Parcel). Driveways, roadways, walkways, parking areas, walkways, curbs, gutters, landscaping and similar improvements may be located in the Drainage and Utility Easement Area. (b) General Application. All systems, structures, mains, sewers, conduits, lines and other public utilities shall be installed and maintained below the ground level or surface of the Parcel (except for such parts thereof that cannot and are not intended to be placed below the surface, such as transformers and control panels, which shall be placed in such location as approved by the Owner of the affected Parcel). 2.2 Reasonable Use of Easements. The easements herein above granted shall be used and enjoyed by each Owner and its Permittees in such a manner so as not to unreasonably interfere with, obstruct or delay the conduct and operations of the business and activities of any other Owner or its Permittees at any time conducted on its Parcel, including, without limitation, public access to and from said business, and the receipt or delivery of merchandise in connection therewith. 3. Maintenance. Each Owner of a Parcel covenants at all times during the term of this Easement Agreement to maintain or cause to be maintained at its expense all Utilities located on its Parcel in good working order, condition and repair. 4. Insurance. Throughout the term of this Easement Agreement, each Owner shall procure and maintain (or cause to be procured and maintained) general and/or comprehensive public liability and property damage insurance against claims for personal injury, death, or property damage occurring upon such Owner's Parcel, with single limit coverage of not less than an aggregate of Two Million Dollars ($2,000,000.00) including umbrella coverage, if any, written by one or more responsible insurance carriers licensed to do business in the state in which the Parcels are located. The liability of each Owner under this Easement Agreement shall be limited to each Owner's respective Parcel that is burdened or benefited by this Easement Agreement and no partner, officer, manager, shareholder, member or director of an Owner shall have any liability with respect to the covenants contained herein, provided that the Owners and their respective partners, agents, officers, directors, managers, shareholders, members, employees or tenants, shall not be liable to the other for damage to or loss, theft, robbery, pilferage or loss of the use of property, or for injury or death to persons caused by any persons entering the Drainage and Utility Easement Area. 5. Taxes and Assessments. Each Owner shall pay all taxes, assessments, or charges of any type levied or made by any governmental body or agency with respect to its Parcel. 6. No Rights in Public; No Implied Easements. Except as set forth in Paragraph 2.1(c), nothing contained herein shall be construed as creating any rights in the general public or as dedicating for public use any portion of Parcels A or Parcel B. No easements, except those expressly set forth in paragraph 2, shall be implied by this Easement Agreement; in that regard, and without limiting the foregoing, no easements for signage are granted or implied. - 3 - {00534803.1 } 7. Remedies and Enforcement. 7.1 All Legal and Equitable Remedies Available. In the event of a breach or threatened breach by any Owner or its Permittees of any of the terms, covenants, restrictions or conditions hereof, the other Owner(s) shall be entitled forthwith to full and adequate relief by injunction and/or all such other available legal and equitable remedies from the consequences of such breach, including payment of any amounts due and/or specific performance. 7.2 Self-Help. In addition to all other remedies available at law or in equity, upon the failure of a defaulting Owner to cure a breach of this Easement Agreement within thirty (30) days following written notice thereof by an Owner (unless, with respect to any such breach the nature of which cannot reasonably be cured within such 30-day period, the defaulting Owner commences such cure within such 30- day period and thereafter diligently prosecutes such cure to completion), any Owner shall have the right to perform such obligation contained in this Easement Agreement on behalf of such defaulting Owner and be reimbursed by such defaulting Owner upon demand for the reasonable costs thereof together with interest at the prime rate charged from time to time by Bank One, N.A. (its successors or assigns), plus two percent (2%) (not to exceed the maximum rate of interest allowed by law). Notwithstanding the foregoing, in the event of (i) an emergency, (ii) blockage or material impairment of the easement rights, and/or (iii) the unauthorized parking of vehicles on a Parcel, an Owner may immediately cure the same and be reimbursed by the other Owner upon demand for the reasonable cost thereof together with interest at the prime rate, plus two percent (2%), as above described. 7.3 Lien Rights. Any claim for reimbursement, including interest as aforesaid, and all costs and expenses including reasonable attorneys' fees awarded to any Owner in enforcing any payment in any suit or proceeding under this Easement Agreement shall be assessed against the defaulting Owner in favor of the prevailing party and Assessment Lien shall constitute a lien (the "") against the Parcel of the defaulting Owner until paid, effective upon the recording of a notice of lien with respect thereto in the official real estate records of Washington County, Minnesota; provided, however, that any such Assessment Lien shall be subject and subordinate to (i) liens for taxes and other public charges which by applicable law are expressly made superior, (ii) all liens recorded in the official real estate records of Washington County, Minnesota prior to the date of recordation of said notice of lien, and (iii) all leases entered into, whether or not recorded, prior to the date of recordation of said notice of lien. All liens recorded subsequent to the recordation of the notice of lien described herein shall be junior and subordinate to the Assessment Lien. Upon the timely curing by the defaulting Owner of any default for which a notice of lien was recorded, the party recording same shall record an appropriate release of such notice of lien and Assessment Lien. - 4 - {00534803.1 } 7.4 Remedies Cumulative. The remedies specified herein shall be cumulative and in addition to all other remedies permitted at law or in equity. 7.5 No Termination For Breach. Notwithstanding the foregoing to the contrary, no breach hereunder shall entitle any Owner to cancel, rescind, or otherwise terminate this Easement Agreement. No breach hereunder shall defeat or render invalid the lien of any mortgage upon any Parcel made in good faith for value, but the easements, covenants, conditions and restrictions hereof shall be binding upon and effective against any Owner of such Parcel covered hereby whose title thereto is acquired by foreclosure, trustee's sale, or otherwise. 7.6 Irreparable Harm. In the event of a violation or threat thereof of any of the provisions of paragraph 2 of this Easement Agreement, each Owner agrees that such violation or threat thereof shall cause the nondefaulting Owner and/or its Permittees to suffer irreparable harm and such nondefaulting Owner and its Permittees shall have no adequate remedy at law. As a result, in the event of a violation or threat thereof of any of the provisions of paragraph 2 of this Easement Agreement, the nondefaulting Owner, in addition to all remedies available at law or otherwise under this Easement Agreement, shall each be entitled to injunctive or other equitable relief to enjoin a violation or threat thereof of paragraph 2 of this Easement Agreement. 8. Term. The easements, covenants, conditions and restrictions contained in this Easement Agreement shall be effective commencing on the date of recordation of this Easement Agreement in the official real estate records of Washington County, Minnesota and shall remain in full force and effect thereafter in perpetuity, unless this Easement Agreement is modified, amended, canceled or terminated by the written consent of all then record Owners of Parcels A and Parcel B in accordance with paragraph 9.2 hereof. 9. Miscellaneous. 9.1 Attorneys' Fees. In the event a party institutes any legal action or proceeding for the enforcement of any right or obligation herein contained, the prevailing party after a final adjudication shall be entitled to recover its costs and reasonable attorneys' fees incurred in the preparation and prosecution of such action or proceeding. 9.2 Amendment. PHS/CG and the City agree that the provisions of this Easement Agreement may be modified or amended, in whole or in part, or terminated, only by the written consent of all record Owners of Parcels A and Parcel B, evidenced by a document that has been fully executed and acknowledged by all such record Owners and recorded in the official real estate records of Washington County, Minnesota. - 5 - {00534803.1 } 9.3 Consents. Wherever in this Easement Agreement the consent or approval of an Owner is required, unless otherwise expressly provided herein, such consent or approval shall not be unreasonably withheld or delayed. Any request for consent or approval shall: (a) be in writing; (b) specify the section hereof which requires that such notice be given or that such consent or approval be obtained; and (c) be accompanied by such background data as is reasonably necessary to make an informed decision thereon. The consent of an Owner under this Easement Agreement, to be effective, must be given, denied or conditioned expressly and in writing. 9.4 No Waiver. No waiver of any default of any obligation by any party hereto shall be implied from any omission by the other party to take any action with respect to such default. 9.5 No Agency. Nothing in this Easement Agreement shall be deemed or construed by either party or by any third person to create the relationship of principal and agent or of limited or general partners or of joint venturers or of any other association between the parties. 9.6 Covenants to Run with Land. It is intended that each of the easements, covenants, conditions, restrictions, rights and obligations set forth herein shall run with the land and create equitable servitudes in favor of the real property benefited thereby, shall bind every person having any fee, leasehold or other interest therein and shall inure to the benefit of the respective parties and their successors, assigns, heirs and personal representatives. If either Parcel is subdivided into two or more parts by ownership, the rights and obligations arising under this Easement Agreement shall benefit and bind only those portions of the Parcel which are contiguous to the easements described in this Easement Agreement or which have appurtenant rights to the easements described in this Easement Agreement, and the owners thereof, and the other portions of the Parcel and the owners thereof shall not be benefited or burdened by such rights or obligations. Each Owner shall be liable under this Easement Agreement only for such obligations as accrue during its respective period of ownership of the Parcel. 9.7 Grantee's Acceptance. The grantee of any Parcel or any portion thereof, by acceptance of a deed conveying title thereto or the execution of a contract for the purchase thereof, whether from an original party or from a subsequent owner of such Parcel, shall accept such deed or contract upon and subject to each and all of the easements, covenants, conditions, restrictions and obligations contained herein. By such acceptance, any such grantee shall for itself and its successors, assigns, heirs, and personal representatives, covenant, consent, and agree to and with the other party, to keep, observe, comply with, and perform the obligations and agreements set forth herein with respect to the property so acquired by such grantee. - 6 - {00534803.1 } 9.8 Severability. Each provision of this Easement Agreement and the application thereof to Parcels A and Parcel B are hereby declared to be independent of and severable from the remainder of this Easement Agreement. If any provision contained herein shall be held to be invalid or to be unenforceable or not to run with the land, such holding shall not affect the validity or enforceability of the remainder of this Easement Agreement. In the event the validity or enforceability of any provision of this Easement Agreement is held to be dependent upon the existence of a specific legal description, the parties agree to promptly cause such legal description to be prepared. Ownership of both Parcels by the same person or entity shall not terminate this Easement Agreement nor in any manner affect or impair the validity or enforceability of this Easement Agreement. 9.9 Time of Essence. Time is of the essence of this Easement Agreement. 9.10 Entire Agreement. This Easement Agreement contains the complete understanding and agreement of the parties hereto with respect to all matters referred to herein, and all prior representations, negotiations, and understandings are superseded hereby. 9.11 Notices. Notices or other communication hereunder shall be in writing and shall be sent certified or registered mail, return receipt requested, or by other national overnight courier company, or personal delivery. Notice shall be deemed given upon receipt or refusal to accept delivery. Each Owner may change from time to time their respective address for notice hereunder by like notice to the other Owner(s). The notice addresses of PHS/CG and the City are as follows: PHS/CG: PHS/CG Center, LLC Attn: Pam Belz 2845 Hamline Avenue North, Suite 100 Roseville, Minnesota 55113 The City: City of Cottage Grove, Minnesota Attn: Charlene Stevens Cottage Grove City Hall 12800 Ravine Parkway South Cottage Grove, Minnesota 55016 9.12 Governing Law. The laws of the State of Minnesota shall govern the interpretation, validity, performance, and enforcement of this Easement Agreement. 9.13 Estoppel Certificates. Each Owner, within thirty (30) days of its receipt of a written request from the other Owner, shall from time to time provide the requesting Owner, a certificate binding upon such Owner stating: (a) to the best of such Owner’s knowledge, whether any party to this Easement Agreement is in - 7 - {00534803.1 } default or violation of this Easement Agreement and if so identifying such default or violation; and (b) that this Easement Agreement is in full force and effect and identifying any amendments to the Easement Agreement as of the date of such certificate. 9.14 Bankruptcy. In the event of any bankruptcy affecting any Owner or occupant of any Parcel, the parties agree that this Easement Agreement shall, to the maximum extent permitted by law, be considered an agreement that runs with the land and that is not rejectable, in whole or in part, by the bankrupt person or entity. \[Signatures begin on next page\] - 8 - {00534803.1 } IN WITNESS WHEREOF , PHS/CG and The City have executed this Easement Agreement as of the date first written above. PHS/CG CENTER, LLC By:_________________________________ Its:_________________________________ STATE OF MINNESOTA ) ) ss. COUNTY OF____________ ) This instrument was acknowledged before me on this ____ day of ________________, 2016, by ____________________, the _________________ of PHS/CG Center, LLC, a Minnesota limited liability company, on behalf of said limited liability company. ____________________________________ Notary Public \[Signature page 1 of 2 to Drainage and Utility Easement Agreement\] - 9 - {00534803.1 } CITY OF COTTAGE GROVE By: ____________________________ Myron Bailey, Mayor By: ____________________________ Joseph Fischbach, City Clerk STATE OF MINNESOTA ) ) ss. COUNTY OF ____________ ) I certify that I know or have satisfactory evidence that Myron Bailey and Joseph Fischbach are the persons who appeared before me, and said persons acknowledged that said persons signed this instrument, on oath stated that said persons were authorized to execute the instrument and acknowledged them as the Mayor and City Clerk, respectively, of the City of Cottage Grove, a municipal corporation, to be their free and voluntary act for the uses and purposes mentioned in the instrument. Dated this _____ day of __________________, 2016. ____________________________________ (Signature of Notary) \[Signature page 2 of 2 to Drainage and Utility Easement Agreement\] - 10 - {00534803.1 } EXHIBIT A LEGAL DESCRIPTION OF PARCELS A Lot 3, Block 1, PHS COTTAGE GROVE INC. 3RD ADDITION, according to the recorded plat thereof on file and of record in the office of the Registrar of Titles in and for the County of Washington and State of Minnesota. {00534803.1 } EXHIBIT B LEGAL DESCRIPTION OF PARCEL B Lot 4, Block 1, PHS COTTAGE GROVE INC. 3RD ADDITION, according to the recorded plat thereof on file and of record in the office of the Registrar of Titles in and for the County of Washington and State of Minnesota. {00534803.1 } EXHIBIT C DRAINAGE AND UTILITY EASEMENT AREA DD EPICTION AND ESCRIPTION {00534803.1 } Storm SewerEasement Agreement ___________________________________________________________________________________ (FRUO) ORECORDINGSENLY STORM SEWER EASEMENT AGREEMENT THIS STORM SEWER EASEMENT AGREEMENT Agreement (this "") is made and entered into Rademacher Family Limited Partnership effective as of December ____, 2016, by and among , a RademacherPHS/CG Center, LLC Minnesota limited partnership (""),, a Minnesota limited liability PHS/CGPHS/Cottage Grove, Inc.PHS company (""), and , a Minnesota nonprofit company (""). RECITALS Lot A. Rademacher is the owner of the real property legally described on the attached Exhibit A (" 1 "); and Lot 2 B. PHS/CG is the owner of the real property legally described on the attached Exhibit B (""); and PHS Lot C. PHS is the owner of the real property legally described on the attached Exhibit C (the ""); and D. Rademacher, PHS/CG and PHS desire to grant certain easements as identified herein. NOW THEREFORE , in consideration of the sum of One Dollar ($1.00) and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereby covenant and agree as follows: 1. Definitions. For purposes hereof: Utility Easement Agreement (a) The term "" shall mean that certain Access and Utility Easement Agreement dated December ____, 2016 by and between PHS/CG and PHS. Drainage and Utility Easement (b) The term "" shall mean the drainage and utility easement benefitting and burdening the Lots created under and pursuant to paragraph 2.1(b) of the Utility Easement Agreement. {00534634.1 } - 1 - Drainage and Utility Easement Area (c) The term "" shall mean those portions of the Lots depicted and described on Exhibit B of the Utility Easement Agreement. Easement Area (d) The term "" shall mean the Storm Sewer Easement Area. LotLots (e) The term "" or "" shall mean each separately identified parcel of real property subjected to this Agreement as described on Exhibit A as Lot 1, on Exhibit B as Lot 2, on Exhibit C as the PHS Lot and any future subdivision thereof (including any Subdivision). OwnerOwners (f) The term "" or "" shall mean, collectively, Rademacher (as to Lot 1), PHS/CG (as to Lot 2) and PHS (as to the PHS Lot), and any and all successors or assigns of such persons as the owner or owners of fee simple title to all or any portion of the real property covered hereby, whether by sale, assignment, inheritance, operation of law, trustee's sale, foreclosure or otherwise, and including any Subdivision Owner, but not including the owner of any lien or encumbrance on such real property. As of the date hereof, Rademacher is the owner of Lot 1, PHS/CG is the owner of Lot 2 and PHS is the owner of the PHS Lot. It is anticipated that a Lot may be subdivided in the future and that any Subdivision and any Subdivision Owner will have the rights and obligations as an Owner under this Agreement. Storm Sewer Easement Area (g) The term "" shall mean that portion of the Lots legally described on Exhibit D attached hereto and depicted on Exhibit D-1 attached hereto. Subdivision (h) The term "" shall mean any and all future subdivisions of all or a portion of any subdivided Lot that exist after the effective date of this Agreement. Subdivision Owner (i) The term "" shall mean, collectively, any and all Owners of any Subdivision. 2. Grant of Storm Sewer Easement. Owners for themselves, their successors and assigns and as owners of the Lots, hereby grant, declare, establish, covenant and convey a perpetual private pond, drainage and storm sewer easement, benefitting and burdening Lot 1 and Lot 2 over, under and across the Storm Sewer Easement Area, for the purposes of (i) drainage of storm water to the Storm Sewer Pond (hereinafter defined), (ii) access to and installation, maintenance, operation, repair, replacement and construction of all drainage improvements, storm sewer lines, water quality treatment ponds, infiltration rain garden ponds, storm water drainage ponds, drainage and storage of surface water catch basins, and other pond and drainage improvements in the Storm Sewer Easement Area, and (iii) operation and use of storm sewer lines and storm water pond retention equipment and facilities in the Storm Sewer Easement Area. The drainage and storm sewer easement(s) granted herein shall include the right of reasonable ingress and egress as may be required to construct, maintain, repair, replace and operate the improvements constructed in the Storm Sewer Easement Area. All storm sewer pipelines and facilities located on Lot 2 and the Storm Sewer Lines PHS Lot (the "") shall be installed and maintained by the Owner of Lot 2 below the ground level or surface of the Lots (except for such parts thereof that cannot and are not intended to be placed below the surface, which shall be placed in such location(s) as reasonably approved by the Owners of the respective Lot where the Storm Sewer Lines are located). The {00534634.1 } - 2 - Owner of the PHS Lot hereby grants the Owner of Lot 2 access to such areas of Lot 1 as are needed to construct the Storm Sewer Lines. The storm sewer pond located south of the southwesterly corner of Lot 1 on the PHS Lot within the Drainage and Utility Easement Area (the Storm Sewer Pond "") has already been constructed and exists under and pursuant to the Drainage and Utility Easement. Driveways, roadways, walkways, parking areas, curbs, gutters, landscaping, buried power lines, lighting, and similar improvements may be located in those portions of the Storm Sewer Easement Area which are not used for ponds or open-air drainage purposes or include above-ground equipment or facilities. 3. Duration. The easements conveyed in this Agreement shall become effective as of the date hereof and shall be perpetual. 4. Use. The Storm Sewer Easement Area shall be used by the Owner of Lot 1 and the Owner of Lot 2 (and any Subdivision Owner) solely for the purposes set forth in paragraph 2 of this Agreement. 5. No Rights in Public; No Implied Easements. Nothing contained herein shall be construed as creating any rights in the general public or as dedicating for public use any portion of any of the Lots. 6. Maintenance. 6.1 Storm Sewer Lines. The Storm Sewer Lines shall be maintained by the Owner of Lot 2. The Owners of Lot 1 and Lot 2 shall be jointly responsible for and shall jointly share in the payment in full of the cost of any maintenance, repair and replacement of the Storm Sewer Lines. Allocation of cost among the Owners of Lot 1 and Lot 2, including any Subdivision Owner, shall be based upon the percentage of square feet each such Owner's Lot comprises of the total square feet of all of such Owner's Lots combined. In the event construction on SewerLine any of the Lots results in the replacement, resizing and/or rerouting (" Reconstruction ") of any of the Storm Sewer Lines, the Owner of the Lot undertaking the Sewer Line Reconstruction shall be responsible for the cost of the Sewer Line Reconstruction and shall also be responsible to ensure existing service is maintained during the Sewer Line Reconstruction. 6.2 Storm Sewer Pond. The Storm Sewer Pond shall be maintained by the Owner of the PHS Lot. The Owners of Lot 1, Lot 2 and the PHS Lot shall be jointly responsible for and shall jointly share in the payment in full of the cost of any maintenance, repair and replacement of the Storm Sewer Pond. Allocation of cost among the Owners of Lot 1, Lot 2 and the PHS Lot, including any Subdivision Owner, shall be based upon the percentage of square feet each Owner's Lot comprises of the total square feet of all of such Owner's Lots combined. 7. Remedies and Enforcement. 7.1 All Legal and Equitable Remedies Available. In the event of a breach or threatened breach of any term of this Agreement, the parties shall have the right to exercise any and all {00534634.1 } - 3 - remedies afforded under law and at equity, including without limitation the right to obtain injunctive relief, payment of any amounts due and/or specific performance. 7.2 Self-Help. In addition to all other remedies available at law or in equity, upon the failure of a defaulting Owner (including any Subdivision Owner) to cure a breach of this Agreement within thirty (30) days following written notice thereof by an Owner (including any Subdivision Owner) (unless, with respect to any such breach the nature of which cannot reasonably be cured within such thirty (30) day period, the defaulting Owner or Subdivision Owner commences such cure within such thirty (30) day period and thereafter diligently prosecutes such cure to completion), any Owner (including any Subdivision Owner) shall have the right to perform such obligation contained in this Agreement on behalf of such defaulting Owner or Subdivision Owner and be reimbursed by such defaulting Owner or Subdivision Owner upon demand for the reasonable costs thereof together with interest at the prime rate charged from time to time by Wells Fargo Bank, N.A. (its successors or assigns), plus two percent (2.0%) (not to exceed the maximum rate of interest allowed by law). Notwithstanding the foregoing, in the event of (i) an emergency and/or (ii) blockage or material impairment of the easement rights, an Owner (including any Subdivision Owner) may immediately cure the same and be reimbursed by the defaulting Owner or Subdivision Owner upon demand for the reasonable cost thereof together with interest at the above-described prime rate, plus two percent (2.0%), as described above. 7.3 Lien Rights. Any claim for reimbursement, including interest as aforesaid, and all costs and expenses including reasonable attorneys' fees awarded to any Owner or Subdivision Owner in enforcing any payment in any suit or proceeding under this Agreement shall be assessed against the defaulting Owner or Subdivision Owner in favor of the prevailing Assessment Lien party and shall constitute a lien (the "") against the Parcel of the defaulting Owner or Subdivision Owner until paid, effective upon the recording of a notice of lien with respect thereto in the official real estate records of Washington County, Minnesota; provided, however, that any such Assessment Lien shall be subject and subordinate to (i) liens for taxes and other public charges which by applicable law are expressly made superior, (ii) all liens recorded in the official real estate records of Washington County, Minnesota prior to the date of recordation of said notice of lien, and (iii) all leases entered into, whether or not recorded, prior to the date of recordation of said notice of lien. All liens recorded subsequent to the recordation of the notice of lien described herein shall be junior and subordinate to the Assessment Lien. Upon the timely curing by the defaulting Owner or Subdivision Owner of any default for which a notice of lien was recorded, the party recording same shall record an appropriate release of such notice of lien and Assessment Lien. 7.4 Remedies Cumulative. The remedies specified herein shall be cumulative and in addition to all other remedies permitted at law or in equity. 7.5 No Termination For Breach. Notwithstanding the foregoing to the contrary, no breach hereunder shall entitle any Owner to cancel, rescind, or otherwise terminate this Agreement. No breach hereunder shall defeat or render invalid the lien of any mortgage {00534634.1 } - 4 - upon any Parcel made in good faith for value, but the easements, covenants, conditions and restrictions hereof shall be binding upon and effective against any Owner of such Parcel covered hereby whose title thereto is acquired by foreclosure, trustee's sale, or otherwise. 8. Miscellaneous. 8.1 Attorneys' Fees. In the event a party institutes any legal action or proceeding for the enforcement of any right or obligation herein contained, the prevailing party after a final adjudication shall be entitled to recover its costs and reasonable attorneys' fees incurred in the preparation and prosecution of such action or proceeding. 8.2 Amendment. The parties agree that the provisions of this Agreement may be modified or amended, in whole or in part, or terminated, only by the written consent of all of the then record owners of the Lots, evidenced by a document that has been fully executed and acknowledged by all such record owners, and recorded in the official real estate records of Washington County, Minnesota. 8.3 Consents. Wherever in this Agreement the consent or approval of an Owner is required, unless otherwise expressly provided herein, such consent or approval shall not be unreasonably withheld or delayed. Any request for consent or approval shall: (a) be in writing; (b) specify the section hereof which requires that such notice be given or that such consent or approval be obtained; and (c) be accompanied by such background data as is reasonably necessary to make an informed decision thereon. The consent of an Owner under this Agreement, to be effective, must be given, denied or conditioned expressly and in writing. 8.4 No Waiver. No waiver of any default of any obligation by any party hereto shall be implied from any omission by the other party to take any action with respect to such default. 8.5 No Agency. Nothing in this Agreement shall be deemed or construed by any party or by any third person to create the relationship of principal and agent or of limited or general partners or of joint venturers or of any other association among the parties. 8.6 Successors and Assigns. All rights and easements ratified, confirmed, established, granted, reserved and consented to by this Agreement shall run with the land and, except as provided otherwise herein, shall inure to the benefit of and be binding on all present and future owners of the Lots and their respective successors and assigns. The Owners shall be liable under this Agreement only for such obligations as accrue during each of their respective period of ownership of all or a portion of the Lots. 8.7 Grantee's Acceptance. The grantee of any Lot or any portion thereof, by acceptance of a deed conveying title thereto or the execution of a contract for the purchase thereof, whether from an original party or from a subsequent owner of such Lot, shall accept such deed or contract upon and subject to each and all of the easements, covenants, conditions, restrictions and obligations contained herein. By such acceptance, any such grantee shall {00534634.1 } - 5 - for itself and its successors, assigns, heirs, and personal representatives, covenant, consent, and agree to and with the other party, to keep, observe, comply with, and perform the obligations and agreements set forth herein with respect to the property so acquired by such grantee. 8.8 Severability. Each provision of this Agreement and the application thereof to the Lots are hereby declared to be independent of and severable from the remainder of this Agreement. If any provision contained herein shall be held to be invalid or to be unenforceable or not to run with the land, such holding shall not affect the validity or enforceability of the remainder of this Agreement. In the event the validity or enforceability of any provision of this Agreement is held to be dependent upon the existence of a specific legal description, the parties agree to promptly cause such legal description to be prepared. Ownership of all of the Lots by the same person or entity shall not terminate this Agreement nor in any manner affect or impair the validity or enforceability of this Agreement. 8.9 Time of Essence. Time is of the essence of this Agreement. 8.10 Entire Agreement. This Agreement contains the complete understanding and agreement of the parties hereto with respect to all matters referred to herein, and all prior representations, negotiations, and understandings are superseded hereby. 8.11 Notices. All notices, communications, demands and requests permitted or required to be given to an Owner under this Agreement shall be in writing and shall be deemed to have been given (a) when personally delivered, or (b) one (1) business day after being delivered to a reliable and recognized overnight courier or messenger service which provides receipts of delivery, with fees prepaid or charged to the sending party, or (c) three (3) business days after being deposited in the United States mail in a sealed envelope with registered or certified mail postage prepaid thereon, addressed to the Owner at such Owner's Lot. 8.12 Governing Law. The laws of the State of Minnesota shall govern the interpretation, validity, performance, and enforcement of this Agreement. 8.13 Bankruptcy. In the event of any bankruptcy affecting any Owner or occupant of any Lot, the parties agree that this Agreement shall, to the maximum extent permitted by law, be considered an agreement that runs with the land and that is not rejectable, in whole or in part, by the bankrupt person or entity. {00534634.1 } - 6 - IN WITNESS WHEREOF , the parties have hereunto executed this Agreement as of the date first written above. Rademacher: Rademacher Family Limited Partnership (A Minnesota limited partnership) By:______________________________________ William C. Rademacher Its: General Partner And By:________________________________________ Karen L. Rademacher Its: General Partner STATE OF MINNESOTA ) ) ss. COUNTY OF __________ ) The foregoing instrument was acknowledged before me this ______ day of _____________, _____, by William C. RademacherKaren L. RademacherRademacher Family and , the general partners, of Limited Partnership , a Minnesota limited partnership, on behalf of said limited partnership. ___________________________________ Notary Public \[Signature page 1 of 3 to Storm Sewer Easement Agreement\] {00534634.1 } - 7 - PHS/CG: PHS/CG Center, LLC (A Minnesota limited liability company) By:______________________________________ Mark Meyer Its: Chief Financial Manager STATE OF MINNESOTA ) ) ss. COUNTY OF __________ ) The foregoing instrument was acknowledged before me this ______ day of _____________, _____, by Mark MeyerPHS/CG Center, LLC , the chief financial manager, of , a Minnesota limited liability company, on behalf of said limited liability company. ___________________________________ Notary Public \[Signature page 2 of 3 to Storm Sewer Easement Agreement\] {00534634.1 } - 8 - PHS: PHS/Cottage Grove, Inc. (A Minnesota nonprofit corporation) By:______________________________________ Its:______________________________________ STATE OF MINNESOTA ) ) ss. COUNTY OF __________ ) The foregoing instrument was acknowledged before me this ______ day of _____________, _____, by PHS/Cottage __________________________________, the _____________________________, of Grove, Inc. , a Minnesota nonprofit corporation, on behalf of said nonprofit corporation. ___________________________________ Notary Public This Instrument Drafted By: Grover C. Sayre, III Leonard, O'Brien, Spencer, Gale & Sayre, Ltd. 100 South Fifth Street, Suite 2500 Minneapolis, Minnesota 55402 (612) 332-1030 \[Signature page 3 of 3 to Storm Sewer Easement Agreement\] {00534634.1 } - 9 - EXHIBIT A LEGAL DESCRIPTION LOT 1 Lot 1, Block 1, PHS COTTAGE GROVE INC. 2ND ADDITION, according to the recorded plat thereof on file and of record in the office of the Registrar of Titles in and for the County of Washington and State of Minnesota. A-1 {00534634.1 } EXHIBIT B LEGAL DESCRIPTION OF LOT 2 Lot 1, Block 1, PHS COTTAGE GROVE INC. 3RD ADDITION, according to the recorded plat thereof on file and of record in the office of the Registrar of Titles in and for the County of Washington and State of Minnesota. B-1 {00534634.1 } EXHIBIT C LEGAL DESCRIPTION OF PHS LOT Lot 1, Block 1, PHS/COTTAGE GROVE, INC., according to the recorded plat thereof on file and of record in the office of the Registrar of Titles in and for the County of Washington and State of Minnesota. C-1 {00534634.1 } EXHIBIT D STORM SEWER EASEMENT AREA D-1 {00534634.1 } EXHIBIT D-1 DEPICTION OF SEWER EASEMENT AREA D-1-1 {00534634.1 } CONSENT TO ACCESS AND UTILITY EASEMENT AGREEMENT Mortgagee Wells Fargo Bank, National Association, a national banking association (""), as mortgagee under that certain ___________ Mortgage _______________________ , executed by PHS/Cottage Grove, Inc. in favor of Mortgagee, dated _____________________, recorded in the office of the Registrar of Titles, Washington County, Minnesota on __________________, as Document No. ________________ (together with any modifications or supplements thereto, the Mortgage ""), hereby consents to the foregoing Storm Sewer Easement Agreement by and between PHS/CG Center, LLC and PHS/Cottage Grove, Inc., it being Mortgagee's intention that by executing and acknowledging this Consent, the same shall be as if it had executed and acknowledged the Storm Sewer Easement Agreement. \[Signatures on next page\] 1 {00534634.1 } Wells Fargo Bank, National Association (A national banking association) By:_________________________________ Its:_________________________________ STATE OF ______________ ) ) ss. COUNTY OF ____________ ) The foregoing instrument was acknowledged before me this _____ day of _______________, 20___, by __________________________________, the ___________________ of Wells Fargo Bank, National Association, a national banking association, on behalf of said national banking association. ___________________________________ Notary Public This instrument drafted by: Leonard, O'Brien, Spencer, Gale & Sayre, Ltd. 100 South Fifth Street, Suite 2500 Minneapolis, Minnesota 55402 (612) 332-1030 Reference: GCS \[Signature page to Consent to Storm Sewer Easement Agreement\] 2 {00534634.1 } Watermain Easement Agreement (City) ______________________________________________________________________________ (FRUO) ORECORDING SENLY WATERMAIN EASEMENT AGREEMENT (C) ITY THIS WATERMAIN EASEMENT AGREEMENTEasement Agreement (this "") is made PHS/CG Center, LLC and entered into this _____ day of December, 2016, by and between , a PHS/CGCity of Cottage Grove Minnesota limited liability company (""), and the , a municipal City corporation (the ""). RECITALS A.PHS/CG is the owner of those certain parcels of real property situated in the City of Cottage Grove, County of Washington, State of Minnesota, more particularly described Parcels A on Exhibit A attached hereto and incorporated herein by this reference (""), and the City is the owner of that certain real property situated in the City of Cottage Grove, County of Washington, State of Minnesota, more particularly described on Exhibit B Parcel B attached hereto and incorporated herein by this reference ("") (Parcels A and Parcels Parcel B are collectively referred to herein as the ""). B.PHS/CG and the City desire to impose certain easements upon the Parcels, for the mutual and reciprocal benefit and complement of the Parcels and the present and future owners and occupants thereof, on the terms and conditions hereinafter set forth. NOW, THEREFORE , in consideration of the above premises and of the covenants herein contained, the parties hereto hereby declare that the Parcels and all present and future owners and occupants of the Parcels shall be and hereby are subject to the terms, covenants and easements hereinafter set forth in this Easement Agreement, so that said Parcels shall be maintained, kept, sold and used in full compliance with and subject to this Easement Agreement and, in connection therewith, PHS/CG and the City covenant and agree as follows: AGREEMENTS 1. Definitions. For purposes hereof: - 1 - {00534794.1 } OwnerOwners (a) The term "" or "" shall mean PHS/CG and the City and any and all successors or assigns of such persons as the owner or owners of fee simple title to all or any portion of the real property covered hereby, whether by sale, assignment, inheritance, operation of law, trustee's sale, foreclosure, or otherwise, but not including the holder of any lien or encumbrance on such real property. ParcelParcels (b) The term "" or "" shall mean each separately identified parcel of real property now constituting a part of the real property subjected to this Easement Agreement as described on Exhibit A, that is, Parcels A and on Exhibit B, that is, Parcel B, and any future subdivisions thereof. Permittees (c) The term "" shall mean the tenant(s), resident(s) or occupant(s) of a Parcel, and the respective employees, agents and contractors of the Owner of such Parcel. Watermain Easement Area (d) The term "" shall mean those portions of Parcels A and Parcel B legally described and depicted on Exhibit C attached hereto and incorporated herein. 2. Easements: 2.1 Watermain Easement. Subject to any express conditions, limitations or reservations contained herein, the Owners declare that the Parcels, and all Owners and Permittees of the Parcels, shall be benefited and burdened by an easement in favor of each Parcel under and across the Watermain Easement Area for the Watermain operation, maintenance, repair and replacement of watermains (the " Lines ") for the delivery of water to improvements located from time to time on the Parcels. The Watermain Lines shall be installed and maintained below the ground level or surface of the Parcel (except for such parts thereof that cannot and are not intended to be placed below the surface, such as transformers and control panels, which shall be placed in such location as approved by the Owner of the affected Parcel). Driveways, roadways, walkways, parking areas, curbs, gutters, landscaping and similar improvements may be located in the Watermain Easement Area. 2.2 Reasonable Use of Easements. The easements herein above granted shall be used and enjoyed by each Owner and its Permittees in such a manner so as not to unreasonably interfere with, obstruct or delay the conduct and operations of the business and activities of any other Owner or its Permittees at any time conducted on its Parcel, including, without limitation, public access to and from said business, and the receipt or delivery of merchandise in connection therewith. 3. Maintenance. Each Owner of a Parcel covenants at all times during the term of this Easement Agreement to maintain or cause to be maintained at its expense all Watermain Lines located on its Parcel in good working order, condition and repair. - 2 - {00534794.1 } 4. Insurance. Throughout the term of this Easement Agreement, each Owner shall procure and maintain (or cause to be procured and maintained) general and/or comprehensive public liability and property damage insurance against claims for personal injury, death, or property damage occurring upon such Owner's Parcel, with single limit coverage of not less than an aggregate of Two Million Dollars ($2,000,000.00) including umbrella coverage, if any, written by one or more responsible insurance carriers licensed to do business in the state in which the Parcels are located. The liability of each Owner under this Easement Agreement shall be limited to each Owner's respective Parcel that is burdened or benefited by this Easement Agreement and no partner, officer, manager, shareholder, member or director of an Owner shall have any liability with respect to the covenants contained herein, provided that the Owners and their respective partners, agents, officers, directors, managers, shareholders, members, employees or tenants, shall not be liable to the other for damage to or loss, theft, robbery, pilferage or loss of the use of property, or for injury or death to persons caused by any persons entering the Watermain Easement Area. 5. Taxes and Assessments. Each Owner shall pay all taxes, assessments, or charges of any type levied or made by any governmental body or agency with respect to its Parcel. 6. No Rights in Public; No Implied Easements. Except as set forth in Paragraph 2.1(c), nothing contained herein shall be construed as creating any rights in the general public or as dedicating for public use any portion of Parcels A or Parcel B. No easements, except those expressly set forth in paragraph 2, shall be implied by this Easement Agreement; in that regard, and without limiting the foregoing, no easements for signage are granted or implied. 7. Remedies and Enforcement. 7.1 All Legal and Equitable Remedies Available. In the event of a breach or threatened breach by any Owner or its Permittees of any of the terms, covenants, restrictions or conditions hereof, the other Owner(s) shall be entitled forthwith to full and adequate relief by injunction and/or all such other available legal and equitable remedies from the consequences of such breach, including payment of any amounts due and/or specific performance. 7.2 Self-Help. In addition to all other remedies available at law or in equity, upon the failure of a defaulting Owner to cure a breach of this Easement Agreement within thirty (30) days following written notice thereof by an Owner (unless, with respect to any such breach the nature of which cannot reasonably be cured within such 30-day period, the defaulting Owner commences such cure within such 30- day period and thereafter diligently prosecutes such cure to completion), any Owner shall have the right to perform such obligation contained in this Easement Agreement on behalf of such defaulting Owner and be reimbursed by such defaulting Owner upon demand for the reasonable costs thereof together with interest at the prime rate charged from time to time by Bank One, N.A. (its - 3 - {00534794.1 } successors or assigns), plus two percent (2%) (not to exceed the maximum rate of interest allowed by law). Notwithstanding the foregoing, in the event of (i) an emergency, (ii) blockage or material impairment of the easement rights, and/or (iii) the unauthorized parking of vehicles on a Parcel, an Owner may immediately cure the same and be reimbursed by the other Owner upon demand for the reasonable cost thereof together with interest at the prime rate, plus two percent (2%), as above described. 7.3 Lien Rights. Any claim for reimbursement, including interest as aforesaid, and all costs and expenses including reasonable attorneys' fees awarded to any Owner in enforcing any payment in any suit or proceeding under this Easement Agreement shall be assessed against the defaulting Owner in favor of the prevailing party and Assessment Lien shall constitute a lien (the "") against the Parcel of the defaulting Owner until paid, effective upon the recording of a notice of lien with respect thereto in the official real estate records of Washington County, Minnesota; provided, however, that any such Assessment Lien shall be subject and subordinate to (i) liens for taxes and other public charges which by applicable law are expressly made superior, and (ii) all liens recorded in the official real estate records of Washington County, Minnesota prior to the date of recordation of said notice of lien. All liens recorded subsequent to the recordation of the notice of lien described herein shall be junior and subordinate to the Assessment Lien. Upon the timely curing by the defaulting Owner of any default for which a notice of lien was recorded, the party recording same shall record an appropriate release of such notice of lien and Assessment Lien. 7.4 Remedies Cumulative. The remedies specified herein shall be cumulative and in addition to all other remedies permitted at law or in equity. 7.5 No Termination For Breach. Notwithstanding the foregoing to the contrary, no breach hereunder shall entitle any Owner to cancel, rescind, or otherwise terminate this Easement Agreement. No breach hereunder shall defeat or render invalid the lien of any mortgage upon any Parcel made in good faith for value, but the easements, covenants, conditions and restrictions hereof shall be binding upon and effective against any Owner of such Parcel covered hereby whose title thereto is acquired by foreclosure, trustee's sale, or otherwise. 7.6 Irreparable Harm. In the event of a violation or threat thereof of any of the provisions of paragraph 2 of this Easement Agreement, each Owner agrees that such violation or threat thereof shall cause the nondefaulting Owner and/or its Permittees to suffer irreparable harm and such nondefaulting Owner and its Permittees shall have no adequate remedy at law. As a result, in the event of a violation or threat thereof of any of the provisions of paragraph 2 of this Easement Agreement, the nondefaulting Owner, in addition to all remedies available at law or otherwise under this Easement Agreement, shall each be entitled to injunctive or other equitable relief to - 4 - {00534794.1 } enjoin a violation or threat thereof of paragraph 2 of this Easement Agreement. 8. Term. The easements, covenants, conditions and restrictions contained in this Easement Agreement shall be effective commencing on the date of recordation of this Easement Agreement in the official real estate records of Washington County, Minnesota and shall remain in full force and effect thereafter in perpetuity, unless this Easement Agreement is modified, amended, canceled or terminated by the written consent of all then record Owners of Parcels A and Parcel B in accordance with paragraph 9.2 hereof. 9. Miscellaneous. 9.1 Attorneys' Fees. In the event a party institutes any legal action or proceeding for the enforcement of any right or obligation herein contained, the prevailing party after a final adjudication shall be entitled to recover its costs and reasonable attorneys' fees incurred in the preparation and prosecution of such action or proceeding. 9.2 Amendment. PHS/CG and the City agree that the provisions of this Easement Agreement may be modified or amended, in whole or in part, or terminated, only by the written consent of all record Owners of Parcels A and Parcel B, evidenced by a document that has been fully executed and acknowledged by all such record Owners and recorded in the official real estate records of Washington County, Minnesota. 9.3 Consents. Wherever in this Easement Agreement the consent or approval of an Owner is required, unless otherwise expressly provided herein, such consent or approval shall not be unreasonably withheld or delayed. Any request for consent or approval shall: (a) be in writing; (b) specify the section hereof which requires that such notice be given or that such consent or approval be obtained; and (c) be accompanied by such background data as is reasonably necessary to make an informed decision thereon. The consent of an Owner under this Easement Agreement, to be effective, must be given, denied or conditioned expressly and in writing. 9.4 No Waiver. No waiver of any default of any obligation by any party hereto shall be implied from any omission by the other party to take any action with respect to such default. 9.5 No Agency. Nothing in this Easement Agreement shall be deemed or construed by either party or by any third person to create the relationship of principal and agent or of limited or general partners or of joint venturers or of any other association between the parties. 9.6 Covenants to Run with Land. It is intended that each of the easements, covenants, conditions, restrictions, rights and obligations set forth herein shall run with the - 5 - {00534794.1 } land and create equitable servitudes in favor of the real property benefited thereby, shall bind every person having any fee, leasehold or other interest therein and shall inure to the benefit of the respective parties and their successors, assigns, heirs and personal representatives. If either Parcel is subdivided into two or more parts by ownership, the rights and obligations arising under this Easement Agreement shall benefit and bind only those portions of the Parcel which are contiguous to the easements described in this Easement Agreement or which have appurtenant rights to the easements described in this Easement Agreement, and the owners thereof, and the other portions of the Parcel and the owners thereof shall not be benefited or burdened by such rights or obligations. Each Owner shall be liable under this Easement Agreement only for such obligations as accrue during its respective period of ownership of the Parcel. 9.7 Grantee's Acceptance. The grantee of any Parcel or any portion thereof, by acceptance of a deed conveying title thereto or the execution of a contract for the purchase thereof, whether from an original party or from a subsequent owner of such Parcel, shall accept such deed or contract upon and subject to each and all of the easements, covenants, conditions, restrictions and obligations contained herein. By such acceptance, any such grantee shall for itself and its successors, assigns, heirs, and personal representatives, covenant, consent, and agree to and with the other party, to keep, observe, comply with, and perform the obligations and agreements set forth herein with respect to the property so acquired by such grantee. 9.8 Severability. Each provision of this Easement Agreement and the application thereof to Parcels A and Parcel B are hereby declared to be independent of and severable from the remainder of this Easement Agreement. If any provision contained herein shall be held to be invalid or to be unenforceable or not to run with the land, such holding shall not affect the validity or enforceability of the remainder of this Easement Agreement. In the event the validity or enforceability of any provision of this Easement Agreement is held to be dependent upon the existence of a specific legal description, the parties agree to promptly cause such legal description to be prepared. Ownership of both Parcels by the same person or entity shall not terminate this Easement Agreement nor in any manner affect or impair the validity or enforceability of this Easement Agreement. 9.9 Time of Essence. Time is of the essence of this Easement Agreement. 9.10 Entire Agreement. This Easement Agreement contains the complete understanding and agreement of the parties hereto with respect to all matters referred to herein, and all prior representations, negotiations, and understandings are superseded hereby. 9.11 Notices. Notices or other communication hereunder shall be in writing and shall be sent certified or registered mail, return receipt requested, or by other national overnight courier company, or personal delivery. Notice shall be deemed given - 6 - {00534794.1 } upon receipt or refusal to accept delivery. Each Owner may change from time to time their respective address for notice hereunder by like notice to the other Owner(s). The notice addresses of PHS/CG and the City are as follows: PHS/CG: PHS/CG Center, LLC Attn: Pam Belz 2845 Hamline Avenue North, Suite 100 Roseville, Minnesota 55113 The City: City of Cottage Grove, Minnesota Attn: Charlene Stevens Cottage Grove City Hall 12800 Ravine Parkway South Cottage Grove, Minnesota 55016 9.12 Governing Law. The laws of the State of Minnesota shall govern the interpretation, validity, performance, and enforcement of this Easement Agreement. 9.13 Estoppel Certificates. Each Owner, within thirty (30) days of its receipt of a written request from the other Owner, shall from time to time provide the requesting Owner, a certificate binding upon such Owner stating: (a) to the best of such Owner’s knowledge, whether any party to this Easement Agreement is in default or violation of this Easement Agreement and if so identifying such default or violation; and (b) that this Easement Agreement is in full force and effect and identifying any amendments to the Easement Agreement as of the date of such certificate. 9.14 Bankruptcy. In the event of any bankruptcy affecting any Owner or occupant of any Parcel, the parties agree that this Easement Agreement shall, to the maximum extent permitted by law, be considered an agreement that runs with the land and that is not rejectable, in whole or in part, by the bankrupt person or entity. \[Signatures begin on next page\] - 7 - {00534794.1 } IN WITNESS WHEREOF , PHS/CG and the City have executed this Easement Agreement as of the date first written above. PHS/CG CENTER, LLC By:_________________________________ Its:_________________________________ STATE OF MINNESOTA ) ) ss. COUNTY OF____________ ) This instrument was acknowledged before me on this ____ day of ________________, 2016, by ____________________, the _________________ of PHS/CG Center, LLC, a Minnesota limited liability company, on behalf of said limited liability company. ____________________________________ Notary Public \[Signature page 1 of 2 to Watermain Easement Agreement\] - 8 - {00534794.1 } CITY OF COTTAGE GROVE By: ____________________________ Myron Bailey, Mayor By: ____________________________ Joseph Fischbach, City Clerk STATE OF MINNESOTA ) ) ss. COUNTY OF ____________ ) I certify that I know or have satisfactory evidence that Myron Bailey and Joseph Fischbach are the persons who appeared before me, and said persons acknowledged that said persons signed this instrument, on oath stated that said persons were authorized to execute the instrument and acknowledged them as the Mayor and City Clerk, respectively, of the City of Cottage Grove, a municipal corporation, to be their free and voluntary act for the uses and purposes mentioned in the instrument. Dated this _____ day of __________________, 2016. ____________________________________ (Signature of Notary) \[Signature page 2 of 2 to Watermain Easement Agreement\] - 9 - {00534794.1 } EXHIBIT A LEGAL DESCRIPTION OF PARCELS A Lots 1 and 3, Block 1, PHS COTTAGE GROVE INC. 3RD ADDITION, according to the recorded plat thereof on file and of record in the office of the Registrar of Titles in and for the County of Washington and State of Minnesota. {00534794.1 } EXHIBIT B LEGAL DESCRIPTION OF PARCEL B Lot 5, Block 1, PHS COTTAGE GROVE INC. 3RD ADDITION, according to the recorded plat thereof on file and of record in the office of the Registrar of Titles in and for the County of Washington and State of Minnesota. {00534794.1 } EXHIBIT C WATERMAIN EASEMENT AREA DD EPICTION AND ESCRIPTION {00534794.1 } Watermain Easement Agreement (PHS) ______________________________________________________________________________ (FRUO) ORECORDING SENLY WATERMAIN EASEMENT AGREEMENT (PHS/CG,I.) OTTAGEROVENC THIS WATERMAIN EASEMENT AGREEMENTEasement Agreement (this "") is made PHS/CG Center, LLC and entered into this _____ day of December, 2016, by and between , a PHS/CGPHS/Cottage Grove, Inc. Minnesota limited liability company (""), and , a Minnesota PHS/Cottage Grove nonprofit corporation (""). RECITALS A.PHS/CG is the owner of those certain parcels of real property situated in the City of Cottage Grove, County of Washington, State of Minnesota, more particularly described Parcels A on Exhibit A attached hereto and incorporated herein by this reference (""), and PHS/Cottage Grove is the owner of that certain real property situated in the City of Cottage Grove, County of Washington, State of Minnesota, more particularly described Parcel B on Exhibit B attached hereto and incorporated herein by this reference ("") Parcels (Parcels A and Parcel B are collectively referred to herein as the ""). B.PHS/CG and PHS/Cottage Grove desire to impose certain easements upon the Parcels, for the mutual and reciprocal benefit and complement of the Parcels and the present and future owners and occupants thereof, on the terms and conditions hereinafter set forth. NOW, THEREFORE , in consideration of the above premises and of the covenants herein contained, the parties hereto hereby declare that the Parcels and all present and future owners and occupants of the Parcels shall be and hereby are subject to the terms, covenants and easements hereinafter set forth in this Easement Agreement, so that said Parcels shall be maintained, kept, sold and used in full compliance with and subject to this Easement Agreement and, in connection therewith, PHS/CG and PHS/Cottage Grove covenant and agree as follows: AGREEMENTS 1. Definitions. For purposes hereof: - 1 - {00534802.1 } OwnerOwners (a) The term "" or "" shall mean PHS/CG and PHS/Cottage Grove and any and all successors or assigns of such persons as the owner or owners of fee simple title to all or any portion of the real property covered hereby, whether by sale, assignment, inheritance, operation of law, trustee's sale, foreclosure, or otherwise, but not including the holder of any lien or encumbrance on such real property. ParcelParcels (b) The term "" or "" shall mean each separately identified parcel of real property now constituting a part of the real property subjected to this Easement Agreement as described on Exhibit A, that is, Parcels A and on Exhibit B, that is, Parcel B, and any future subdivisions thereof. Permittees (c) The term "" shall mean the tenant(s), resident(s) or occupant(s) of a Parcel, and the respective employees, agents and contractors of the Owner of such Parcel. Watermain Easement Area (d) The term "" shall mean those portions of Parcels A and Parcel B legally described and depicted on Exhibit C attached hereto and incorporated herein. 2. Easements: 2.1 Watermain Easement. Subject to any express conditions, limitations or reservations contained herein, the Owners declare that the Parcels, and all Owners and Permittees of the Parcels, shall be benefited and burdened by an easement in favor of each Parcel under and across the Watermain Easement Area for the Watermain operation, maintenance, repair and replacement of watermains (the " Lines ") for the delivery of water to improvements located from time to time on the Parcels. The Watermain Lines shall be installed and maintained below the ground level or surface of the Parcel (except for such parts thereof that cannot and are not intended to be placed below the surface, such as transformers and control panels, which shall be placed in such location as approved by the Owner of the affected Parcel). Driveways, roadways, walkways, parking areas, curbs, gutters, landscaping and similar improvements may be located in the Watermain Easement Area. 2.2 Reasonable Use of Easements. The easements herein above granted shall be used and enjoyed by each Owner and its Permittees in such a manner so as not to unreasonably interfere with, obstruct or delay the conduct and operations of the business and activities of any other Owner or its Permittees at any time conducted on its Parcel, including, without limitation, public access to and from said business, and the receipt or delivery of merchandise in connection therewith. - 2 - {00534802.1 } 3. Maintenance. Each Owner of a Parcel covenants at all times during the term of this Easement Agreement to maintain or cause to be maintained at its expense all Watermain Lines located on its Parcel in good working order, condition and repair. 4. Insurance. Throughout the term of this Easement Agreement, each Owner shall procure and maintain (or cause to be procured and maintained) general and/or comprehensive public liability and property damage insurance against claims for personal injury, death, or property damage occurring upon such Owner's Parcel, with single limit coverage of not less than an aggregate of Two Million Dollars ($2,000,000.00) including umbrella coverage, if any, written by one or more responsible insurance carriers licensed to do business in the state in which the Parcels are located. The liability of each Owner under this Easement Agreement shall be limited to each Owner's respective Parcel that is burdened or benefited by this Easement Agreement and no partner, officer, manager, shareholder, member or director of an Owner shall have any liability with respect to the covenants contained herein, provided that the Owners and their respective partners, agents, officers, directors, managers, shareholders, members, employees or tenants, shall not be liable to the other for damage to or loss, theft, robbery, pilferage or loss of the use of property, or for injury or death to persons caused by any persons entering the Watermain Easement Area. 5. Taxes and Assessments. Each Owner shall pay all taxes, assessments, or charges of any type levied or made by any governmental body or agency with respect to its Parcel. 6. No Rights in Public; No Implied Easements. Except as set forth in Paragraph 2.1(c), nothing contained herein shall be construed as creating any rights in the general public or as dedicating for public use any portion of Parcels A or Parcel B. No easements, except those expressly set forth in paragraph 2, shall be implied by this Easement Agreement; in that regard, and without limiting the foregoing, no easements for signage are granted or implied. 7. Remedies and Enforcement. 7.1 All Legal and Equitable Remedies Available. In the event of a breach or threatened breach by any Owner or its Permittees of any of the terms, covenants, restrictions or conditions hereof, the other Owner(s) shall be entitled forthwith to full and adequate relief by injunction and/or all such other available legal and equitable remedies from the consequences of such breach, including payment of any amounts due and/or specific performance. 7.2 Self-Help. In addition to all other remedies available at law or in equity, upon the failure of a defaulting Owner to cure a breach of this Easement Agreement within thirty (30) days following written notice thereof by an Owner (unless, with respect to any such breach the nature of which cannot reasonably be cured within such 30-day period, the defaulting Owner commences such cure within such 30- day period and thereafter diligently prosecutes such cure to completion), any Owner shall have the right to perform such obligation contained in this Easement - 3 - {00534802.1 } Agreement on behalf of such defaulting Owner and be reimbursed by such defaulting Owner upon demand for the reasonable costs thereof together with interest at the prime rate charged from time to time by Bank One, N.A. (its successors or assigns), plus two percent (2%) (not to exceed the maximum rate of interest allowed by law). Notwithstanding the foregoing, in the event of (i) an emergency, (ii) blockage or material impairment of the easement rights, and/or (iii) the unauthorized parking of vehicles on a Parcel, an Owner may immediately cure the same and be reimbursed by the other Owner upon demand for the reasonable cost thereof together with interest at the prime rate, plus two percent (2%), as above described. 7.3 Lien Rights. Any claim for reimbursement, including interest as aforesaid, and all costs and expenses including reasonable attorneys' fees awarded to any Owner in enforcing any payment in any suit or proceeding under this Easement Agreement shall be assessed against the defaulting Owner in favor of the prevailing party and Assessment Lien shall constitute a lien (the "") against the Parcel of the defaulting Owner until paid, effective upon the recording of a notice of lien with respect thereto in the official real estate records of Washington County, Minnesota; provided, however, that any such Assessment Lien shall be subject and subordinate to (i) liens for taxes and other public charges which by applicable law are expressly made superior, and (ii) all liens recorded in the official real estate records of Washington County, Minnesota prior to the date of recordation of said notice of lien. All liens recorded subsequent to the recordation of the notice of lien described herein shall be junior and subordinate to the Assessment Lien. Upon the timely curing by the defaulting Owner of any default for which a notice of lien was recorded, the party recording same shall record an appropriate release of such notice of lien and Assessment Lien. 7.4 Remedies Cumulative. The remedies specified herein shall be cumulative and in addition to all other remedies permitted at law or in equity. 7.5 No Termination For Breach. Notwithstanding the foregoing to the contrary, no breach hereunder shall entitle any Owner to cancel, rescind, or otherwise terminate this Easement Agreement. No breach hereunder shall defeat or render invalid the lien of any mortgage upon any Parcel made in good faith for value, but the easements, covenants, conditions and restrictions hereof shall be binding upon and effective against any Owner of such Parcel covered hereby whose title thereto is acquired by foreclosure, trustee's sale, or otherwise. 7.6 Irreparable Harm. In the event of a violation or threat thereof of any of the provisions of paragraph 2 of this Easement Agreement, each Owner agrees that such violation or threat thereof shall cause the nondefaulting Owner and/or its Permittees to suffer irreparable harm and such nondefaulting Owner and its Permittees shall have no adequate remedy at law. As a result, in the event of a violation or threat thereof of any of the provisions of paragraph 2 of this Easement Agreement, the nondefaulting Owner, in - 4 - {00534802.1 } addition to all remedies available at law or otherwise under this Easement Agreement, shall each be entitled to injunctive or other equitable relief to enjoin a violation or threat thereof of paragraph 2 of this Easement Agreement. 8. Term. The easements, covenants, conditions and restrictions contained in this Easement Agreement shall be effective commencing on the date of recordation of this Easement Agreement in the official real estate records of Washington County, Minnesota and shall remain in full force and effect thereafter in perpetuity, unless this Easement Agreement is modified, amended, canceled or terminated by the written consent of all then record Owners of Parcels A and Parcel B in accordance with paragraph 9.2 hereof. 9. Miscellaneous. 9.1 Attorneys' Fees. In the event a party institutes any legal action or proceeding for the enforcement of any right or obligation herein contained, the prevailing party after a final adjudication shall be entitled to recover its costs and reasonable attorneys' fees incurred in the preparation and prosecution of such action or proceeding. 9.2 Amendment. PHS/CG and PHS/Cottage Grove agree that the provisions of this Easement Agreement may be modified or amended, in whole or in part, or terminated, only by the written consent of all record Owners of Parcels A and Parcel B, evidenced by a document that has been fully executed and acknowledged by all such record Owners and recorded in the official real estate records of Washington County, Minnesota. 9.3 Consents. Wherever in this Easement Agreement the consent or approval of an Owner is required, unless otherwise expressly provided herein, such consent or approval shall not be unreasonably withheld or delayed. Any request for consent or approval shall: (a) be in writing; (b) specify the section hereof which requires that such notice be given or that such consent or approval be obtained; and (c) be accompanied by such background data as is reasonably necessary to make an informed decision thereon. The consent of an Owner under this Easement Agreement, to be effective, must be given, denied or conditioned expressly and in writing. 9.4 No Waiver. No waiver of any default of any obligation by any party hereto shall be implied from any omission by the other party to take any action with respect to such default. 9.5 No Agency. Nothing in this Easement Agreement shall be deemed or construed by either party or by any third person to create the relationship of principal and agent or of limited or general partners or of joint venturers or of any other association between the parties. - 5 - {00534802.1 } 9.6 Covenants to Run with Land. It is intended that each of the easements, covenants, conditions, restrictions, rights and obligations set forth herein shall run with the land and create equitable servitudes in favor of the real property benefited thereby, shall bind every person having any fee, leasehold or other interest therein and shall inure to the benefit of the respective parties and their successors, assigns, heirs and personal representatives. If either Parcel is subdivided into two or more parts by ownership, the rights and obligations arising under this Easement Agreement shall benefit and bind only those portions of the Parcel which are contiguous to the easements described in this Easement Agreement or which have appurtenant rights to the easements described in this Easement Agreement, and the owners thereof, and the other portions of the Parcel and the owners thereof shall not be benefited or burdened by such rights or obligations. Each Owner shall be liable under this Easement Agreement only for such obligations as accrue during its respective period of ownership of the Parcel. 9.7 Grantee's Acceptance. The grantee of any Parcel or any portion thereof, by acceptance of a deed conveying title thereto or the execution of a contract for the purchase thereof, whether from an original party or from a subsequent owner of such Parcel, shall accept such deed or contract upon and subject to each and all of the easements, covenants, conditions, restrictions and obligations contained herein. By such acceptance, any such grantee shall for itself and its successors, assigns, heirs, and personal representatives, covenant, consent, and agree to and with the other party, to keep, observe, comply with, and perform the obligations and agreements set forth herein with respect to the property so acquired by such grantee. 9.8 Severability. Each provision of this Easement Agreement and the application thereof to Parcels A and Parcel B are hereby declared to be independent of and severable from the remainder of this Easement Agreement. If any provision contained herein shall be held to be invalid or to be unenforceable or not to run with the land, such holding shall not affect the validity or enforceability of the remainder of this Easement Agreement. In the event the validity or enforceability of any provision of this Easement Agreement is held to be dependent upon the existence of a specific legal description, the parties agree to promptly cause such legal description to be prepared. Ownership of both Parcels by the same person or entity shall not terminate this Easement Agreement nor in any manner affect or impair the validity or enforceability of this Easement Agreement. 9.9 Time of Essence. Time is of the essence of this Easement Agreement. 9.10 Entire Agreement. This Easement Agreement contains the complete understanding and agreement of the parties hereto with respect to all matters referred to herein, and all prior representations, negotiations, and understandings are superseded hereby. - 6 - {00534802.1 } 9.11 Notices. Notices or other communication hereunder shall be in writing and shall be sent certified or registered mail, return receipt requested, or by other national overnight courier company, or personal delivery. Notice shall be deemed given upon receipt or refusal to accept delivery. Each Owner may change from time to time their respective address for notice hereunder by like notice to the other Owner(s). The notice addresses of PHS/CG and PHS/Cottage Grove are as follows: PHS/CG: PHS/CG Center, LLC Attn: Pam Belz 2845 Hamline Avenue North, Suite 100 Roseville, Minnesota 55113 PHS/Cottage Grove: PHS/Cottage Grove, Inc. Attn: Mark T. Meyer 2845 Hamline Avenue North Roseville, Minnesota 55113 9.12 Governing Law. The laws of the State of Minnesota shall govern the interpretation, validity, performance, and enforcement of this Easement Agreement. 9.13 Estoppel Certificates. Each Owner, within thirty (30) days of its receipt of a written request from the other Owner, shall from time to time provide the requesting Owner, a certificate binding upon such Owner stating: (a) to the best of such Owner’s knowledge, whether any party to this Easement Agreement is in default or violation of this Easement Agreement and if so identifying such default or violation; and (b) that this Easement Agreement is in full force and effect and identifying any amendments to the Easement Agreement as of the date of such certificate. 9.14 Bankruptcy. In the event of any bankruptcy affecting any Owner or occupant of any Parcel, the parties agree that this Easement Agreement shall, to the maximum extent permitted by law, be considered an agreement that runs with the land and that is not rejectable, in whole or in part, by the bankrupt person or entity. Signatures begin on next page\] - 7 - {00534802.1 } IN WITNESS WHEREOF , PHS/CG and PHS/Cottage Grove have executed this Easement Agreement as of the date first written above. PHS/CG CENTER, LLC By:_________________________________ Its:_________________________________ STATE OF MINNESOTA ) ) ss. COUNTY OF____________ ) This instrument was acknowledged before me on this ____ day of ________________, 2016, by ____________________, the _________________ of PHS/CG Center, LLC, a Minnesota limited liability company, on behalf of said limited liability company. ____________________________________ Notary Public \[Signature page 1 of 2 to Watermain Easement Agreement\] - 8 - {00534802.1 } PHS/COTTAGE GROVE, INC. By: ____________________________ Mark T. Meyer Its: Chief Financial Officer STATE OF MINNESOTA ) ) ss. COUNTY OF____________ ) This instrument was acknowledged before me on this ____ day of ________________, 2016, by Mark T. Meyer, the Chief Financial Officer of PHS/Cottage Grove, Inc., a Minnesota non-profit corporation, on behalf of said non-profit corporation. ____________________________________ Notary Public \[Signature page 2 of 2 to Watermain Easement Agreement\] - 9 - {00534802.1 } EXHIBIT A LEGAL DESCRIPTION OF PARCELS A Lots 1 and 3, Block 1, PHS COTTAGE GROVE INC. 3RD ADDITION, according to the recorded plat thereof on file and of record in the office of the Registrar of Titles in and for the County of Washington and State of Minnesota. {00534802.1 } EXHIBIT B LEGAL DESCRIPTION OF PARCEL B Lot 1, Block 1, PHS COTTAGE GROVE INC. ADDITION, according to the recorded plat thereof on file and of record in the office of the Registrar of Titles in and for the County of Washington and State of Minnesota. {00534802.1 } EXHIBIT C WATERMAIN EASEMENT AREA DD EPICTION AND ESCRIPTION {00534802.1 } CONSENT TO WATERMAIN EASEMENT AGREEMENT Mortgagee Wells Fargo Bank, National Association, a national banking association (""), as mortgagee under that certain ___________ Mortgage _______________________ , executed by PHS/Cottage Grove, Inc. in favor of Mortgagee, dated _____________________, recorded in the office of the Registrar of Titles, Washington County, Minnesota on __________________, as Document No. ________________ (together with any modifications or supplements thereto, the Mortgage ""), hereby consents to the foregoing Watermain Easement Agreement by and between PHS/CG Center, LLC and PHS/Cottage Grove, Inc., it being Mortgagee's intention that by executing and acknowledging this Consent, the same shall be as if it had executed and acknowledged the Watermain Easement Agreement. \[Signatures on next page\] {00534802.1 } Wells Fargo Bank, National Association (A national banking association) By:_________________________________ Its:_________________________________ STATE OF ______________ ) ) ss. COUNTY OF ____________ ) The foregoing instrument was acknowledged before me this _____ day of _______________, 20___, by __________________________________, the ___________________ of Wells Fargo Bank, National Association, a national banking association, on behalf of said national banking association. ___________________________________ Notary Public This instrument drafted by: Leonard, O'Brien, Spencer, Gale & Sayre, Ltd. 100 South Fifth Street, Suite 2500 Minneapolis, Minnesota 55402 (612) 332-1030 Reference: GCS \[Signature page to Consent to Watermain Easement Agreement\] {00534802.1 } Easement Vacation and Termination EASEMENTVACATION AND TERMINATION THIS EASEMENTVACATION AND TERMINATIONEasement Termination (this "") is PHS/Cottage entered into effective as of December _____, 2016, and is hereby conveyed by Grove, Inc.PHS/Cottage GrovePHS/CG Center, , a Minnesota nonprofit corporation (""),and LLCPHS/CG , a Minnesota limited liability company (""), the holdersof certain easement rights hereinafter described and defined. RECITALS A.PHS/Cottage Grove is the Declarant of a Declaration of Easements, Covenants, Easement Conditions and Restrictions (the "") dated December 14, 2006, recorded on December 21, 2006, as Document No. 1173363 in the Office of the Registrar of Titles, Washington County, Minnesota, and current owner of Parcel A legally described in Exhibit A of the Easement. B.PHS/CG is the owner of Parcel B legally described in Exhibit B of the Easement. C.PHS/Cottage Grove and PHS/CG desires to terminate and vacate the Easement. NOW, THEREFORE , in consideration of the above recitals and One Dollar ($1.00) and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, PHS/Cottage Grove and PHS/CG hereby declare that: 1.Termination of Easement. TheEasement ishereby terminatedand vacatedin its entirety effective as of the date of this Easement Termination. 2.MinnesotaLaw. This Easement Terminationshall be construed in accordance with the laws of the State of Minnesota. 3.Severability. The invalidity of any covenant, restriction, condition, limitation, provision, paragraph or clause of this Easement Termination, or any part of the same, or the inapplicability thereof to any person or circumstance, shall not impair or affect in any manner the validity, enforceability, or effect of the rest of this Easement Termination, or the inapplicability of any such covenant,restriction, condition, limitation, provision, paragraph or clause to any other person or circumstance. -1- {00531533.1 } IN WITNESS WHEREOF ,the undersigned hascaused this instrument to be executed the day and year first above written, intending to be legally bound thereby and warranting authority to execute the same. PHS/Cottage Grove, Inc. (A Minnesota nonprofit corporation) By:______________________________ Its:______________________________ STATE OF MINNESOTA) ) ss. COUNTY OF_________________) I certify that I know or have satisfactory evidence that ________________________ is the person who appeared before me and said person acknowledged that said person signed this instrument, on oath stated that said person was authorized to execute the instrument and acknowledged itas the ____________________ of PHS/Cottage Grove, Inc., a Minnesota nonprofit corporation,to be its free and voluntary act for the uses and purposes mentioned in the instrument. Dated this _____day of __________________, 2016 ____________________________________ (Signature of Notary) \[Signature page 1 of 2 to Easement Vacation and Termination\] -2- {00531533.1 } PHS/CG Center, LLC (A Minnesota limited liability company) By:______________________________ Its:______________________________ STATE OF MINNESOTA) ) ss. COUNTY OF_________________) I certify that I know or have satisfactory evidence that ________________________ is the person who appeared before me and said person acknowledged that said person signed this instrument, on oath stated that said person was authorized to execute the instrument and acknowledged it as the ____________________ of PHS/CG Center, LLC, a Minnesota limited liability company, to be its free and voluntary act for the uses and purposes mentioned in the instrument. Dated this _____ day of __________________, 2016 ____________________________________ (Signature of Notary) This instrument was drafted by: Leonard, O'Brien, Spencer, Gale & Sayre, Ltd 100 SouthFifth Street, Suite 2500 Minneapolis, Minnesota 55402 Grover C. Sayre, III (612) 332-1030 \[Signature page 2 of 2 to Easement Vacation and Termination\] -3- {00531533.1 } Easement Vacation and Termination (Storm Sewer Easement) EASEMENT VACATION AND TERMINATION \[SSE\] TORM EWER ASEMENT THIS EASEMENT VACATION AND TERMINATION Easement Termination (this "") is PHS/Cottage entered into effective as of December _____, 2016, and is hereby conveyed by Grove, Inc.PHS/Cottage GrovePHS/CG Center, , a Minnesota nonprofit corporation (""), LLCPHS/CGRademacher Family Limited , a Minnesota limited liability company (""), and PartnershipRademacher , a Minnesota limited partnership (""), the holders of certain easement rights hereinafter described and defined. RECITALS A.PHS/Cottage Grove, PHS/CG and Rademacher did enter into a Storm Sewer Easement Easement Agreement (the "") dated January 7, 2014, recorded on January 10, 2014, as Document No. 1226470 in the Office of the Registrar of Titles, Washington County, Minnesota. B.PHS/Cottage Grove, PHS/CG and Rademacher desire to terminate and vacate the Easement. NOW, THEREFORE , in consideration of the above recitals and One Dollar ($1.00) and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, PHS/Cottage Grove, PHS/CG and Rademacher hereby declare that: 1. Termination of Easement. The Easement is hereby terminated and vacated in its entirety effective as of the date of this Easement Termination. 2. Minnesota Law. This Easement Termination shall be construed in accordance with the laws of the State of Minnesota. 3. Severability. The invalidity of any covenant, restriction, condition, limitation, provision, paragraph or clause of this Easement Termination, or any part of the same, or the inapplicability thereof to any person or circumstance, shall not impair or affect in any manner the validity, enforceability, or effect of the rest of this Easement Termination, or the inapplicability of any such covenant, restriction, condition, limitation, provision, paragraph or clause to any other person or circumstance. - 1 - {00534461.1 } IN WITNESS WHEREOF , the undersigned has caused this instrument to be executed the day and year first above written, intending to be legally bound thereby and warranting authority to execute the same. PHS/Cottage Grove, Inc. (A Minnesota nonprofit corporation) By:______________________________ Its:______________________________ STATE OF MINNESOTA ) ) ss. COUNTY OF _________________ ) I certify that I know or have satisfactory evidence that ________________________ is the person who appeared before me and said person acknowledged that said person signed this instrument, on oath stated that said person was authorized to execute the instrument and acknowledged it as the ____________________ of PHS/Cottage Grove, Inc., a Minnesota nonprofit corporation, to be its free and voluntary act for the uses and purposes mentioned in the instrument. Dated this _____ day of __________________, 2016. ____________________________________ (Signature of Notary) \[Signature page 1 of 3 to Easement Vacation and Termination\] - 2 - {00534461.1 } PHS/CG Center, LLC (A Minnesota limited liability company) By:______________________________ Its:______________________________ STATE OF MINNESOTA ) ) ss. COUNTY OF _________________ ) I certify that I know or have satisfactory evidence that ________________________ is the person who appeared before me and said person acknowledged that said person signed this instrument, on oath stated that said person was authorized to execute the instrument and acknowledged it as the ____________________ of PHS/CG Center, LLC, a Minnesota limited liability company, to be its free and voluntary act for the uses and purposes mentioned in the instrument. Dated this _____ day of __________________, 2016. ____________________________________ (Signature of Notary) \[Signature page 2 of 3 to Easement Vacation and Termination\] - 3 - {00534461.1 } RADEMACHER FAMILY LIMITED PARTNERSHIP By: _____________________________ Its:______________________________ STATE OF MINNESOTA ) ) ss. COUNTY OF _________________ ) I certify that I know or have satisfactory evidence that _________________________ is the person who appeared before me, and said person acknowledged that said person signed this instrument, on oath stated that said person was authorized to execute the instrument and acknowledged it as the ____________________ of the Rademacher Family Limited Partnership, a Minnesota limited partnership, to be its free and voluntary act for the uses and purposes mentioned in the instrument. Dated this _____ day of __________________, 2016. ____________________________________ (Signature of Notary) This instrument was drafted by: Leonard, O'Brien, Spencer, Gale & Sayre, Ltd 100 South Fifth Street, Suite 2500 Minneapolis, Minnesota 55402 Grover C. Sayre, III (612) 332-1030 \[Signature page 3 of 3 to Easement Vacation and Termination\] - 4 - {00534461.1 } CONSENT TO EASEMENT VACATION AND TERMINATION \[PHS/CGM\] OTTAGEROVE ORTGAGE Mortgagee Wells Fargo Bank, National Association, a national banking association (""), as mortgagee under that certain ___________ Mortgage _______________________ , executed by PHS/Cottage Grove, Inc. in favor of Mortgagee, dated _____________________, recorded in the office of the Registrar of Titles, Washington County, Minnesota on __________________, as Document No. ________________ (together with any modifications or supplements thereto, the Mortgage ""), hereby consents to the foregoing Easement Vacation and Termination by and among PHS/CG Center, LLC, PHS/Cottage Grove, Inc., the City of Cottage Grove and Rademacher Family Limited Partnership, it being Mortgagee's intention that by executing and acknowledging this Consent, the same shall be as if it had executed and acknowledged the Easement Vacation and Termination. \[Signatures on next page\] - 1 - {00534461.1 } Wells Fargo Bank, National Association (A national banking association) By:_________________________________ Its:_________________________________ STATE OF ______________ ) ) ss. COUNTY OF ____________ ) The foregoing instrument was acknowledged before me this _____ day of _______________, 20___, by __________________________________, the ___________________ of Wells Fargo Bank, National Association, a national banking association, on behalf of said national banking association. ___________________________________ Notary Public This instrument drafted by: Leonard, O'Brien, Spencer, Gale & Sayre, Ltd. 100 South Fifth Street, Suite 2500 Minneapolis, Minnesota 55402 (612) 332-1030 Reference: GCS \[Signature page to Consent to Easement Vacation and Termination\] - 2 - {00534461.1 } CONSENT TO EASEMENT VACATION AND TERMINATION \[RM\] ADEMACHER ORTGAGE Mortgagee ________________________________, a _______________________ (""), as mortgagee under that certain ___________ Mortgage _______________________ , executed by Rademacher Family Limited Partnership in favor of Mortgagee, dated ________________, recorded in the office of the Registrar of Titles, Washington County, Minnesota on __________________, as Document No. ________________ (together with any modifications Mortgage or supplements thereto, the ""), hereby consents to the foregoing Easement Vacation and Termination by and among PHS/Cottage Grove, Inc., PHS/CG Center, LLC, the City of Cottage Grove and Rademacher Family Limited Partnership, it being Mortgagee's intention that by executing and acknowledging this Consent, the same shall be as if it had executed and acknowledged the Easement Vacation and Termination. \[Signatures on next page\] - 1 - {00534461.1 } ___________________________________ (A _____________________) By:_________________________________ Its:_________________________________ STATE OF ______________ ) ) ss. COUNTY OF ____________ ) The foregoing instrument was acknowledged before me this _____ day of _______________, 20___, by __________________________________, the ___________________ of ________ _____________________________, a _______________________________, on behalf of said __________________________. ___________________________________ Notary Public This instrument drafted by: Leonard, O'Brien, Spencer, Gale & Sayre, Ltd. 100 South Fifth Street, Suite 2500 Minneapolis, Minnesota 55402 (612) 332-1030 Reference: GCS \[Signature page to Consent to Easement Vacation and Termination\] - 2 - {00534461.1 }