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successive one-year terms thereafter, unless and until terminated in writing by either party prior to May I during any renewal term. 2. Rent. The rent shall be $1.00 per year, payable in advance. 3. Permitted Use. The Property is leased by the City to the Railroad Museum in an "as is" condition for use by the Railroad Museum as follows: (a) Storage, restoration, and maintenance of railroad cars and associated equipment, railroad memorabilia, and items reflecting or embodying our railroad heritage. (b) As a permanent exhibit that is open to viewing by the public. (c) The Railroad Museum understands that applicable codes require bathroom facilities if there is to be public access to the interior of any railroad car, and it shall comply with these and all other code and zoning requirements. 4. Railroad Cars; Conveyance of Caboose. There are presently four railroad cars on the Property. One of them, a caboose, is the property of the City, which received it as a gift from Norfolk Southern Railway. By this instrument, the City hereby conveys all its right, title, and interest in the caboose to the Railroad Museum, and the Railroad Museum accepts ownership of the caboose in "as is" condition, with no express or implied warranties of any kind. The remaining three cars are already the property of the Railroad Museum. The Railroad Museum is further authorized to bring a locomotive engine and a tender to the Property, to be placed on the existing tracks on the Property. The Railroad Museum will make all necessary maintenance and improvements to the existing tracks, including cross ties and spikes, to ensure their ability to hold safely said locomotive engine and tender. -2- Draft 6