HAY LEASE, CONTINUED, EXHIBIT B
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- Jocelin Shepherd
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2 HAY LEASE
3 HAY LEASE, CONTINUED, EXHIBIT B
4 05/16/06 FARM LEASE This Lease, made the day of, 20, by and between the Airport Authority of the City of Lincoln, Nebraska, hereinafter called Authority, and, hereinafter called Lessee. It is mutually agreed between the parties as follows: 1. Demise. Authority, in consideration of the rents to be paid by Lessee as hereinafter set forth, and of the covenants and agreements hereinafter stipulated to be mutually kept and performed by the parties hereto, does hereby lease unto Lessee the following described real estate: TRACT I areas north and northwest of the North Park Road and Northwest 38th Street consisting of approximately Three Hundred Eighty Acres (380A), as shown as Tract I on the attached exhibit labeled TRACT I Exhibit A. 2. Term. (a) Basic Term. Lessee shall have and hold the said real estate for a term of three (3) crop seasons beginning December 1, 2006, and ending November 30, 2007; beginning December 1, 2007, and ending November 30, 2008; beginning December 1, 2008, and ending November 30, 2009, or whenever harvest of 2009 crops is completed, whichever first occurs. (b) Extension. If this Lease has not been previously terminated, this Lease shall automatically renew for an additional term of three (3) crop seasons beginning December 1, 2009, and ending November 30, 2012, or whenever harvest of the 2012 crops is complete, whichever occurs first, unless either party gives notice to the other party, on or before January 1, 2008, that it will not agree to such extension. If this Lease is automatically extended, all terms and conditions, including rent, shall apply during the extension term and rental for all years of the extension term shall be paid in accordance with the schedule herein set forth for the final two years of the basic term. 3. Rent. Lessee agrees to pay Authority annual cash rent in the amount of ($ ) payable as follows: $ 5% of annual cash rent due upon acceptance of bid at auction. $ 5% of annual cash rent due on January 1, $ 30% of annual cash rent due on March 1, $ 30% of annual cash rent due on July 1, $ 30% of annual cash rent due on November 1, $ 10% of annual cash rent due on each of the following dates: January 1, 2008 and January 1, $ 30% of annual cash rent due on each of the following dates: March 1, 2008 and March 1, $ 30% of annual cash rent due on each of the following dates: July 1, 2008 and July 1, 2009.
5 $ 30% of annual cash rent due on each of the following dates: November 1, 2008 and November 1, Payments. All rental payments due under this Lease shall be paid, without notice to Lessee, to the Authority. Lessee agrees to pay to Authority an additional charge of fifteen percent (15%) per annum on unpaid rent from the first day of the month that the rental payment is due, on any rental payments which remain unpaid for more than ten (10) days after due date. 5. Taxes. At the time of execution of this Lease, no real estate taxes have been levied against the properties described herein. However, if the leased premises become subject to real estate tax or subject to a payment in lieu of tax, then the Lessee shall pay the said tax or payment in lieu of tax, in addition to any rental fees specified in the Lease. 6. Use and Purpose. The land can be planted to wheat, corn, milo, alfalfa, or soybeans. Lessee shall secure approval from Authority before planting anything other than these crops. Lessee agrees that he will not cultivate or farm any grass areas or waterways, earthen dike areas, or other erosion control areas now in existence or hereafter developed. 7. USDA; Recommendations. The Authority has retained the services of the United States Department of Agriculture - Wildlife Services, to manage wildlife on airport property with regard to continuing safe aircraft operations. The recommendations of Wildlife Services will be followed by Authority and Lessee. 8. Farming Practices. All farming practices may be changed with a written thirty (30) day notice given prior to the effective date of the change. Tenant farmers shall leave as much crop stubble standing in the fields as possible to deter geese and other birds. If this is not effective and turns out to attract geese and other birds, then Authority may require tenant farmers to till the stubble under in a manner acceptable to the Authority. The cropland can be planted to wheat, corn, milo, alfalfa or soybeans. 9. No Cost to Authority. This Lease shall be in every sense without cost to Authority. Lessee agrees to pay all expenses in connection with his operations pursuant to this Lease including, but not limited to, weed control, fence repair and maintenance and the production and marketing of the crops Crop History; Yield. Lessee agrees to give Authority, upon Authority s request, crop history, yield, and any other information on farming operations on the tract of land described in this Lease. 11. Authority; Right to Amend. Authority reserves the right to amend the provisions of this Lease from time to time (except for rental rates and lease term) as may be necessary for airport operations. Authority shall give Lessee thirty (30) days prior written notice of any such amendment. 12. Burning/ Grazing Prohibited. Lessee shall not burn or remove any stocks from the land. No livestock grazing will be allowed at anytime without Authority s written permission. 13. Crop Preparations; Expiration of Lease. Lessee agrees not to fall plow any land, plant any crop, or prepare the land for planting any crop which would not mature until after the expiration of this Lease. Lessee acknowledges that, if the lease is not extended pursuant to paragraph 2 (b), a new tenant will have possession of the tract after harvest of
6 2009 crops or December 1, 2009, whichever first occurs, or if the lease is extended, a new tenant will have possession of the tract after harvest of 2012 crops or December 1, 2012, whichever occurs first 14. Compliance with Airport Rules. It is understood and agreed by and between the parties that the farming operations of Lessee will be conducted on the portions of Lincoln Airport as are described herein, which are under the general jurisdiction of the Authority, and its Executive Director or his designated representative. Lessee shall, at all times, comply with any directions, instructions, rules or regulations of the Authority, as amended from time to time, and its Executive Director or his designated representative to the end that said farming operations shall be conducted in such a manner as will not interfere with any of the safety, security and operations now or hereafter conducted at Lincoln Airport. Lessee shall, in the use of the premises, comply with all applicable requirements of all state, municipal, and federal authorities now in force or which may hereafter be in force. 15. Airport Requirements; Repossession. In the event that a portion of the premises leased herein are required for any Airport improvement or safety reasons, or other use during the term, it is agreed that the Authority or its agents may repossess the property, provided only that Authority shall give Lessee written notice thirty (30) days prior to repossession and that Lessee shall be reimbursed for the reasonable value of work performed or crops planted on the area involved and the rental rate provided for herein will be proportionately reduced. 16. Best Farming Practices. Lessee further agrees to cultivate the land and rotate crops in accordance with the best farming practices and to maintain the fertility levels of all fields and to prevent excessive washing to the land. Authority reserves the right and option to require fall tilling or to prohibit fall tilling upon thirty (30) days notice to Lessee. In addition, Authority reserves the right to allow hunting of wildlife on the property to individuals selected by Authority. Lessee shall not hunt or otherwise discharge any deadly weapon on the area included in this lease unless specifically authorized to do so in writing by the Authority, 17. Fences; Maintenance; Weed Abatement and Control. It is further expressly agreed by Lessee that he will, at his sole expense, carefully protect and maintain all fences, buildings, and improvements of every kind that are now on said premises. Lessee also expressly agrees to use all reasonable means to keep the cultivated lands of said premises free from weeds and to destroy all weeds throughout the leased area and along the fences and buildings, including all cockleburs, musk thistles and other weeds on the highway or roadways adjoining the land and along the borders of the fields before they ripen their seeds. In the event that Lessee does not adequately control weeds covered under this Lease, and after receiving a notice from Authority, then Lessee agrees to reimburse the Authority for the costs incurred by the Authority to control weeds covered under this Lease. 18. No Assignment or Subletting. Lessee will not sublet or assign this Lease in whole or in part nor in any manner lease any part of the described premises without the written consent of Authority. Any such assignment or subletting without the prior written consent of Authority shall be void and shall, at the option of Authority, terminate this Lease. 19. Right to Inspect. It is further agreed that Authority and its agents may go upon said premises at any time to inspect the same or to make improvements or repairs thereon, or to take soil samples, and to plow for future crops in the fall of 2009, or if the lease is extended in accordance with paragraph 2 (b), in the fall of Covenants Binding. The covenants herein shall extend to and be binding upon the heirs, executors, and administrators of the parties to this Lease. 21. Expiration; Surrender. Lessee will promptly, at the expiration of the term herein granted, yield up possession of said premises, without prior notice of termination of the Lease by the Authority with fences, buildings, and improve-
7 ments, if any, in as good condition as they now are or may be at any time during the continuation of this Lease, ordinary wear and tear and loss by fire excepted, and free from any claim by Lessee or agents of or employees of Lessee for work or expenses incurred preparing for subsequent crops. 22. Harvest; No Later than November 30th. Lessee covenants and agrees that all crops shall be harvested and removed from the leased premises no later than November 30th of each year, and that crops remaining on the leased premises after November 30th of each year shall, at the sole option of Authority, become the sole property of Authority or shall be removed from the property at Lessee s expense. 23. Protection of Airport. Authority reserves the right to take any action it considers necessary to protect the aerial approaches of the Airport against obstruction, together with the right to prevent Lessee from erecting, or permitting to be erected, any building or other structure on the Airport which, in the opinion of Authority, would limit the usefulness of the Airport or constitute a hazard to aircraft. 24. No Adverse Affect on Airport. It is understood and agreed that the rights granted by this Lease will not be exercised in such a way as to interfere with or adversely affect the use, operation, maintenance, or development of the Airport. 25. Right of Flight Unrestricted. There is hereby reserved to Authority, its successors and assigns, for the use and benefit of the public, a free and unrestricted right of flight for the passage of aircraft in the airspace above the surface of the premises herein conveyed, together with the right to cause in said airspace such noise as may be inherent in the operation of aircraft, now known or hereafter used for navigation of or flight in the air, using said airspace or landing at, taking off from, or operating on or about the Airport. 26. FAA Requirements; Addendums. Lessee agrees that Lessee will, by lease addendum, agree to such additional provisions as may be required by FAA as a condition of granting to Authority funds for Airport improvement projects or as FAA or Authority deem necessary for operations, safety, or security of the Airport. 27. Breach; Right of Termination. Authority may elect to terminate all of the rights of Lessee hereunder by giving ten (10) days written notice of termination to Lessee when any of the following shall occur: a. Institution of voluntary bankruptcy proceedings by Lessee. b. Institution of involuntary bankruptcy proceedings in which Lessee thereafter is adjudged a bankrupt. c. Assignment for benefit of creditors of the interest of Lessee under this Lease. d. Appointment of a receiver for the property or affairs of Lessee. e. Failure or refusal to pay rent as per the terms of this Lease. f. Breach of any covenant or term of this Lease. Any occurrence set forth above shall constitute a breach of this Lease by Lessee and Authority shall, in that event, be entitled to exercise all remedies herein provided for a breach by Lessee, as well as any and all remedies provided by law or in equity. It is further agreed that upon said breach and after notice as provided above, Authority may re-enter the leased premises and remove all property of Lessee
8 therefrom. 28. Hold Harmless; Insurance. Lessee shall defend, indemnify and hold Authority and its agents, officers and employees harmless from and against any and all claims, suits, demands, actions, liabilities, losses, damages, judgments or fines arising by reason of injury or death of any person, or damage to any property, including all reasonable costs for investigation and defense thereof (including, but not limited to, attorney fees, court costs, investigator fees, and expert fees) of any nature whatsoever arising out of Lessee s activities on Authority s property, or in its use or occupancy of the leased premises, regardless of where the injury, death or damage may occur, except to the extent such injury, death or damage is caused by the negligent act or omission or willful misconduct of Authority. Authority shall give Lessee reasonable notice of, and an opportunity to defend against, any such claims or actions. Notwithstanding the above indemnification, Lessee shall give Authority reasonable notices of any matter covered herein and shall forward to Authority a copy of every demand, notice, summons or other process received in any claim or legal proceeding covered hereby. Lessee agrees to obtain liability insurance in the amount of One Million Dollars ($1,000,000.00) including the Authority as an additional insured. Said insurance policy shall contain a provision to notify the Authority in writing thirty (30) days prior to any cancellation or reduction of coverage. 29. Notice. All notices to be given pursuant to this Lease shall be addressed to the Airport Authority, Lincoln Airport, P.O. Box 80407, Lincoln, Nebraska 68501, or to the Lessee herein named at. Notice shall be deemed to have been fully given if and when enclosed in a properly sealed envelope or wrapper addressed as aforesaid and deposited, postage prepaid, in a post office regularly maintained by the United States Government. 30. Hazardous Materials; Indemnification. Lessee shall not cause or permit any hazardous substance or material to be brought upon, kept or used in or about the Premises by Lessee, its agents, employees, contractors or invitees, except for such use as is in compliance with all laws, ordinances and regulations. Lessee agrees that it shall be fully liable for all costs and expenses related to any use, storage, or disposal of hazardous substances or materials kept upon the Premises by the Lessee, and the Lessee shall give prompt notice to the Authority within twenty-four hours of the occurrence of any violation or potential violation of the provisions of this Lease. Lessee shall defend, indemnify, and hold harmless Authority and its agents from and against any claims, demands, penalties, fines, liabilities, settlements, damages, costs, or expenses (including, without limitation, attorneys and consultant fees, court costs, and litigation expenses) of whatever kind or nature, known or unknown, contingent or otherwise, arising out of or in any way related to: (a) The presence, disposal, release or threatened release of any such hazardous substance or material that is on, from, or effects soil, water, vegetation, buildings, personal property, persons, animals, or otherwise; (b) Any personal injury (including wrongful death) or property damage (real or personal) arising out of or related to such hazardous substance or material; (c) Any lawsuit brought or threatened, settlement reached, or government order relating to such hazardous substance or materials; or (d) Any violation of any laws applicable thereto. The provisions of this Lease shall be in addition to any other obligations and liabilities Lessee may have to Authority at law or in equity and shall survive the transactions contemplated herein and shall survive the termination of this Lease. As used herein, the term hazardous substance or material means: (a) Any hazardous waste as defined by the Resource Conservation and Recovery Act of 1976, as amended from time to time, and regulations promulgated thereunder; (b) Any hazardous substance as defined by the Comprehensive Environmental Response, Compensa-
9 tion and Liability Act of 1980, as amended from time to time, and regulations promulgated thereunder; (c) Any glycol, oil, petroleum products, and their byproducts; and (d) Any material or substance which is or becomes regulated by any federal, state, or local governmental authority. 31. Nondiscrimination. Lessee, as a part of the consideration hereof, does hereby covenant and agree that: (1) No person on the grounds of race, color, or national origin shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in Lessee s use of the premises; (2) That in the construction of any improvements on, over, or under the land or the furnishing of services thereon, no person on the grounds of race, color, or national origin shall be excluded from participation, denied the benefits of, or otherwise be subjected to discrimination; (a) That the Lessee shall use the Premises in compliance with all other requirements imposed by or pursuant to 49 C.F.R. Part 21, Nondiscrimination in Federal Assisted Programs of the Department of Transportation and as said regulations may be amended. (b) Lessee shall not discriminate against any employee or applicant for employment to be employed in the performance of this Lease, with respect to his or her hire, tenure, terms, conditions, or privileges of employment, because of his or her race, color, religion, sex, disability, or national origin. 32. Time of Essence. Time is of the essence of this Agreement. 33. No Waiver. No waiver by Authority of any breach of any provision of this Lease agreement shall be deemed for any purpose be a waiver of any breach of any other provision hereof or of a continuing or subsequent breach of the same provision. 34. Entire Agreement; Amendment. This Lease shall constitute the entire agreement between the parties. Any prior understanding or representation of any kind preceding the date of this Lease shall not be binding upon either party except to the extent incorporated in this Lease. No amendment of this Lease shall be valid unless it is in writing and is signed by the parties or their duly authorized representatives. IN WITNESS WHEREOF, the parties have hereunto set their hands the day and year first above written. AIRPORT AUTHORITY OF THE CITY OF LINCOLN, NEBRASKA, ATTEST: Lessor By: Chairman Secretary By: Lessee Lessee (Printed Name)
10 Address: Phone: APPROVED AS TO FORM: William F. Austin ERICKSON & SEDERSTROM, P.C. Legal Counsel for the Airport Authority of the City of Lincoln, Nebraska STATE OF NEBRASKA ) ) ss. COUNTY OF LANCASTER ) The foregoing instrument was acknowledged before me on this day of, 20, by, Chairman of the Airport Authority of the City of Lincoln, Nebraska and on its behalf. Notary Public STATE OF ) ) SS. COUNTY OF ) The foregoing instrument was acknowledged before me on this day of, 20, by. Notary Public
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