THIS INDENTURE made as of the day of, 20.

Transcription

1 THIS INDENTURE made as of the day of, 20. BETWEEN: MUNICIPAL DISTRICT OF TABER 4900 B 50 Street, Taber, Alberta, T1G 1T2 (hereinafter referred to as the Lessor ) -and- (hereinafter referred to as the Lessee ) GRAZING LEASE 1. DEMISED PREMISES 2. TERM 3. RENT 1.1. WITNESSETH that in consideration of the rents, covenants and agreements hereinafter reserved and contained on the part of the Lessee to be paid, observed and performed, the Lessor hath demised and leased, and by these presents doth demise and lease unto the Lessee, certain farm lands in the Province of Alberta, (hereinafter referred to as the Demised Premises ) and more particularly described as: See attached Schedules A & C for the purpose of grazing livestock. 2.1 TO HAVE AND TO HOLD the Demised Premises for and during the term of TWO (1) years to be computed from and inclusive of the 1st day of, 20 and from thence forth next ensuing and fully to be completed and ended on 31 st day of, 20, payable on or before the 15 th day of November in each year YIELDING AND PAYING THEREFORE yearly and every year during the said term hereby granted unto the Lessor, their Executors, Administrators or assigns, the clear yearly rent hereinafter mentioned of $ DOLLARS ($ ) without any deduction, defalcation or abatement whatsoever.

2 THE LESSEE COVENANTS WITH THE LESSOR AS FOLLOWS: 4. PAYMENT OF RENT THE Lessee will, during the said term, pay to the Lessor the rent hereby reserved, in the manner hereinbefore mentioned, without any deduction whatsoever. 5. G.S.T. AND ADDITIONAL TAXES 5.1. IF the Lessor is required to collect and remit the Goods and Services Tax or some tax of like nature in respect of this Lease pursuant to the Excise Tax Act of Canada or pursuant to any other law or regulation hereafter enacted the Lessee will, in addition to the rent and other monies payable under this Lease, pay to the Lessor the tax required to be paid by the Lessee by that Act, law or regulation. 6. PROPERTY TAXES 6.1. THE Lessee will pay all the taxes, rates and assessments which may be levied against the Demised Premises during the continuance of the said term. 7. GOVERNMENT ASSISTANCE, CROP INSURANCE 7.1 THE Lessee acknowledges that the Lessor will not be entitled to share in any income received in the form of government assistance or crop insurance unless the Lessor have made application for such benefits in its own name and have paid all of the premiums related thereto. 8. CONDITIONS 8.1 THE Lessee acknowledges that the Demised Premises are in good condition and repair at the date of commencement of the terms hereby demised. The Lessee covenants and agrees to repair and maintain the Demised Premises in a good and proper state of repair. Good and Proper State of Repair means maintaining grasslands in a condition that aids in the preservation of the natural prairie ecology, maintenance of native and beneficial tame grass species, and grazing management which demonstrates knowledge of commonly accepted best management practices in accordance with the Alberta ESRD Grazing Lease Stewardship Code of Practice. December 14, In the MD of Taber s interest of reduced soil erosion, minimizing encroachment by invasive plant species, and elimination of destruction of native habitat, the Lessee s rights under the MD Land Grazing Lease are subject to all MD of Taber bylaws including but not limited to the MD of Taber Prairie Conservation Bylaw and Conservation Order.

3 3 9. ENTRY AND REPAIR 9.1 IT will be lawful for the Lessor and it s agents at all reasonable times during the said term to enter the Demised Premises to examine the condition of the Demised Premises. If the Lessee is found to be in non-compliance of the conditions set out in Section 8, and deemed necessary, the MD of Taber may issue a Conservation Order under the Prairie Conservation Bylaw. In the event the Lessee may neglect or refuse to adhere to the conditions of the Conservation Order for the Demised Property, the Lessor may repair the damages and recover all amounts expended by it in connection therewith by all remedies available to it for the recovery of rent in arrears. 9.2 THE MD of Taber may enter upon the lands at any time to perform inspections to confirm the compliance with the Grazing Lease Agreement and the Prairie Conservation Bylaw and/or Conservation Order. 10. MAINTAINING THE CONDITION OF THE LAND 10.1 THE Lessee will not break, cultivate or put into crop any portion of the Demised premises without the prior written consent of the Lessor SHOULD the Lessee break, cultivate or put into crop any portion of the Demised Premises without the prior written consent of the Lessor the Lessee shall immediately forfeit the lease for the property as outlined in Section 27 of this agreement and the leasehold rights for the property will be tendered to the public by the Lessor THE Lessee shall not mow, cut, swath, bale, combine or otherwise harvest any portion of the grass upon the lease without the written consent of the Lessor SHOULD the Lessee mow, cut, swath, bale, combine or otherwise harvest any portion of the grass upon the lease in a manner, other than grazing, without the written consent of the Lessor, the Lessee shall immediately forfeit the lease for the property as outlined in Section 27 of this agreement and the leasehold rights for the property tendered to the public by the Lessor. 11. GRAZING AREA 11.1 THE Lessee will confine his livestock to the Demised Premises (as depicted in Schedule C )

4 4 12. LIVESTOCK IDENTIFICATION, STOCKING REPORT, AND CALCULATIONS OF ANIMAL UNIT MONTHS 12.1 THE Lessee will not allow livestock that are not owned by the Lessee on the Demised Premises without the prior written consent of the Lessor THE Lessor reserves the right to inspect the livestock of the Lessee on the Demised Premises and require proof of ownership from the Lessee satisfactory to the Lessor ALL livestock on the Demised Premises must carry the brand of the Lessee, or in the case of Grazing Associations or Grazing Cooperatives, the brands of the registered members of the Association or Cooperative unless written consent of the Lessor is received by the Lessee THE Lessee will provide to the Lessor a Stocking Report for the Demised Property before December 31 st of each year STOCKING Rates, or the number of animals the Lessee is permitted to graze on the Demised Property will be based upon current Animal Unit Month (AUM) Calculations as outlined within Schedule A of this agreement. The Lessee agrees to limit the number of animals grazing on the Demised Premises to the stocking rates calculated pursuant to this agreement The Lessor reserves the right to reduce the A.U.M. for any parcel of land subject to this Agreement at any time subject to written notice to the Lessee. 13. FENCES 13.1 THE Lessee will maintain and keep in good repair all fences. 14. WEEDS 14.1 THE Lessee will use his best efforts to control all noxious, nuisance and invasive weeds as defined with the Weed Control Act or Municipal District of Taber Bylaws. 15. ASSIGNMENT 15.1 THE Lessee agrees it cannot assign its interest under this Lease or sublet any portion of the Demised Premises without the written consent of the Lessor, which may be withheld according to the Lessor s policy relating thereto; the same being attached hereto as Schedule B and forming part of this agreement.

5 THE Lessor reserves the right to change their policies at any time and any request to assign or sublet as outlined above will be subject to the Lessor s policies at the time of the request and not at the time the parties hereto entered this lease. 16. EXCLUSION OF LIABILITY It is agreed between the Lessor and the Lessee that: 16.1 THE Lessor, their agents, servants and employees shall not be liable for damage or injury to any property of the Lessee which is entrusted to the care and control of the Lessor, its agents, servants and employees THE Lessor shall not be liable, nor responsible in any way for any personal or consequential injury that may be suffered by the Lessee or to their employees, agents, servants or invitees. 17. GENERAL INDEMNIFICATION 17.1 THE Lessee agrees that they shall indemnify, defend, and hold the Lessor and the Lessor's employees and agents harmless from and against any and all loss, liability, claims, strict liability claims, demands, lawsuits, causes of action, fines, judgments, penalties, damages, expenses and costs (including solicitor's fees) in connection with the actual or alleged damage to property, personal injury, and or loss of life arising from or relating to the use, occupation and possession of the premises by the Lessee and the Lessee's agents, employees, officers, invitees, livestock, and directors, except to the extent caused by the Lessor's own negligence THIS indemnification shall include any and all loss, liability, remediation and clean-up costs, private third party claims, governmental claims, strict liability claims, demands, lawsuits, causes of action, fines, judgments, penalties, expenses and costs (including solicitor's fees) arising out of or resulting from any actual or alleged violation of any laws, orders, directives, rules, regulations, orders or decrees, or other similar requirement of any government, court, or authority that relate to environmental pollution, environmental control or environmental matters of any kind on the premises THIS indemnification shall include any and all loss, liability, remediation and clean-up costs, private third party claims, governmental claims, strict liability claims, demands, lawsuits, causes of actions, fines, judgments, penalties, expenses and costs (including solicitor's fees) arising out of or resulting from the presence, release, storage, use, handling, disposal, or dispersal of any substance or material in, on, or from the premises that, actually or allegedly, caused or causes environmental harm or damage to natural resources.

6 18. ENCUMBRANCE OF TITLE NOTHING herein contained shall authorize the Lessee to do any act or make any contracts so as to encumber or affect in any manner the title and rights of the Lessor in the Demised Premises. It is also agreed that no contract, transfer, assignment, mortgage, judgment, lien arising out of the transactions of the Lessee shall in any manner affect the title of the Lessor in the Demised Premises or take precedents to any of the rights or interests of the Lessor herein. THE LESSOR COVENANTS WITH THE LESSEE AS FOLLOWS: 19. QUIET ENJOYMENT 19.1 THE Lessor covenants with the Lessee for quiet enjoyment. THE LESSOR AND THE LESSEE MUTUALLY COVENANT WITH EACH OTHER: 20. IMPROVEMENTS 20.1 PROVIDED that the Lessee has obtained the Lessor s consent, which consent shall not be unreasonably withheld, the Lessee will have the right to make improvements to the Demised Premises. Any aforementioned improvements will be made at the sole expense of the Lessee with no expectation of compensation or contribution from the Lessor to the Lessee PROVIDED, and it is hereby expressly agreed, that the Lessee may prior to or within six (6) months following the expiration of this Lease, take, remove and carry away from the Demised Premises all of the Lessee s fixtures, including without restricting the generality of the foregoing, the Lessee s fences, corrals and granaries, and any additions, alterations or improvements made by the Lessee to the Demised Premises, and make good any damage which the Lessee may occasion thereto. If the Lessee does not remove the said fixtures within six (6) months of the expiration of this Lease, then all such fixtures and improvements thereon will become the property of the Lessor, without further notice to the Lessee. 21. SURFACE LEASES 21.1 THE Lessor will retain TWO THIRDS (2/3) of all income from all existing surface leases or new surface leases and pay to the Lessee ONE THIRD (1/3) of all income from the said surface leases so long as the Lessee s share does not exceed 50% of the combined total of the Lessee s rent as outlined in this Agreement.

7 IT is further agreed that the Lessor reserves the right to enter into new surface leases and approve the same. If crop damage occurs to the Demised Premises then payment for crop damage, if any, will be paid to the Lessee IT is further agreed that the payments to the Lessee as outlined above will be paid on the 31 st day of December in each year IT is further agreed that the Lessor reserves the right to enter into geophysical agreements with respect to geophysical operations, and other operations Relating thereto. The Lessor will be entitled to all monies received for geophysical agreements except for crop damage (if any) which will be paid in the same manner as outlined above. 22. RESIDENCY 22.1 ALL individual Lessees shall be persons who are at least eighteen (18) years of age and an individual whose primary residence is within the Municipal District of Taber (including municipalities within the boundaries of the M.D. of Taber); 22.2 CORPORATE Lessees shall be deemed to have met the residency requirement found within paragraph 22.1 provided that the corporation has at least one shareholder or a combination of shareholders who possess the majority of the corporation s shares and whose primary residence is within the M.D. of Taber. All Corporate Lessees shall provide a list of shareholders to the MD of Taber NOTWITHSTANDING paragraph 22.1, any non-resident Lessee as of July 10, 2007 shall be allowed to retain their Lease until such time as the Lease is terminated by the death of the Lessee or the Lease is terminated pursuant to any other provision of the Lease. 23. SURRENDER 23.1 THAT the Lessee will, at the expiration or sooner determination of the said term, and any renewal, surrender and yield up unto the said Lessor, the Demised Premises with the appurtenances, together with all buildings, fixtures or erections which at any time during the said term shall be made therein or thereon in good substantial repair and condition. 24. ABANDONMENT 24.1 IF the Lessee abandons or removes himself from the said Demised Premises before the end of the said term, then and in such case, the Lessor may forthwith, or at any time afterwards, without notice and without waiving or postponing any rights against the Lessee, relet the Demised Premises or part thereof upon such terms as they shall deem proper, and apply the proceeds less costs and expenses, including the costs of repairs and collection upon any rent due or Judgment therefore and hold the Lessee liable for the unpaid balance of rents and costs as aforesaid.

8 8 25. INSOLVENCY 25.1 THAT the Lessee covenants that if the term hereby granted or the Lessee s goods and chattels of the Demised Premises liable to distress shall be at any time seized or taken in execution or in attachment by any creditor of the said Lessee or if the said Lessee shall make any assignment for the benefit of any creditor or becoming bankrupt or insolvent shall take the benefit of any act that may be in force for bankrupt or insolvent debtors, the then current years rent will immediately become due and payable and the said term will immediately become forfeited and void. 26. CANCELLATION OF LEASE- COMPLIANCE WITH AGREEMENT AND LAW 26.1 THE Lessee will not directly or indirectly permit any violations of any laws or relevant by-laws now or hereafter enacted relating to environmental conditions with respect to the Demised Premises arising from the Lessee s use or occupancy of the Demised Premises, including, without limitation, laws relating to soil and ground water conditions THE Lessee will comply with all Municipal District of Taber Bylaws, including, but not limited to the Prairie Conservation Bylaw THE Lessor in their sole discretion may terminate the Lease of the Lessee if he is indebted to the Lessor for accounts or other amounts owing for any reason, whether related to this Lease agreement or not, in excess of one thousand dollars that remain outstanding for more than 180 days 26.4 The Lessor may cancel a lease, and issue a Notice of Cancellation if the MD of Taber is satisfied that; (a) (b) (c) (d) (e) (f) (g) The lease land is not being used for the purpose for which it is leased, The lease was issued in error, The lease or the land described in it is not held by the lessee for the lessee s sole use and benefit, The lessee was ineligible to apply for or acquire the lease or is ineligible to hold it, The lessee has failed to pay the rent, taxes, rates or assessments levied against the lessee s interest under the lease or any other money payable under the lease when it is due, or A breach or default is made in any of the covenants herein contained by the Lessee. Any portion of the grassland within the Demised Premises has been broken or cultivated by the Lessee.

9 9 (h) Any portion of the grassland was mowed, swathed, combined, baled, or harvested by the Lessee (i) A contravention of environmental law has occurred on the Demised Premises including but not limited to the Weed Control Act, Agricultural Pests Act, Soil Conservation Act or the Alberta Environmental Protection Act; (j) A contravention of the Prairie Conservation Bylaw and/or Conservation Order or any Municipal District of Taber bylaw has occurred on the leased land or within the adjacent municipal right of way caused by the Lessee, an employee of the Lessee or an agent working on behalf of the Lessee Where the Lessor is authorized to cancel a lease under Section DEFAULT (a) The Lessor may instead withdraw part of the land from the Lease, and (b) Where land is withdrawn from this lease all payments made to the Municipal District of Taber are forfeited and the lessee is not entitled to any compensation for any work performed on the leased land or for any expenditure made by the lessee in respect of or incidental to the lessee s use of it. (a) (b) PROVIDED, also that if a breach or default be made in any of the covenants herein contained by the Lessee, the Lessee will be sent a Notice of Cancellation of Lease. THAT if in any year, the Lessee receives a Notice of Cancellation of Lease, on or before the 31 st day of December, in each year that a default occurs, the Lessee may have the Lease reinstated by payment of all outstanding amounts due under the Lease plus interest at the rate of 1% above prime rate plus the following years rent payable on or before the 1 st day of February following such notice of cancellation. 28. NON-WAIVER 28.1 IT is further agreed that any condoning, excusing or overlooking by the Lessor any default, breach or non-observance by the Lessee at any time or times in respect of any covenant, agreement, proviso or condition herein contained will not operate as a waiver of the Lessor s rights hereunder in respect of any subsequent default, breach of non-observance, nor as to defeat or affect in any way the rights of the Lessor herein in respect of any such subsequent default, breach or non-observance.

10 TERMINATION 29.1 SHOULD the Lessor sell the Demised Premises or require the Demised Premises for any purpose at any time during the term of this Lease, or should the corporate Lessee change its controlling shareholders, the Lessor may terminate this Lease by giving notice in writing to the Lessee on or before the 1 st day of March in any year, personally delivered or mailed to the Lessee at herein, being The Lessee agrees to allow prospective buyers reasonable access and cooperate with the efforts of the Lessor to sell the Demised Premises. 30. NOTICES 30.1 THE Lessor and the Lessee agree that any notice, request or demand herein provided for or given hereunder if given by the Lessee to the Lessor will be sufficiently given if mailed by registered mail, postage prepaid, addressed to the Lessor as follows: 4900B 50 th Street, Taber, Alberta, T1G 1T ANY notice herein provided for or given hereunder if given by the Lessor to the Lessee will be sufficiently given if mailed as aforesaid addressed to the Lessee at. Any notice mailed as aforesaid will be conclusively deemed to have been given on the next business day following the day on which such notice is mailed as aforesaid. Either the Lessor or the Lessee may at any time give notice in writing to the other or others of any change of address of the party giving such notice and from and after the giving of such notice the address therein specified will be deemed to be the address of such party for the giving of such notices thereafter. 31. WORDING 31.1 WORDS importing the singular number only will include the plural and vice versa, and words importing the masculine gender will include the feminine gender and words importing persons shall include firms and corporations and vice versa. The headings to clauses are for convenience of reference only and will not affect the interpretation of these clauses. 32. DEFINITION 32.1 UNLESS the contrary intention appears, the words Lessor and Lessee wherever they appear in this Lease will mean respectively Lessor, his executors, administrators, successors and/or assigns: and Lessee, his executors, administrators, successors and/or assigns ; and if there is more than one Lessee or Lessor, the Lessee or Lessor is a female person or a corporation, this Lease will be read with all grammatical changes appropriate by reasons thereof, and all covenants, liabilities and obligations shall be joint and several.

11 11 IN WITNESS WHEREOF the parties hereto have hereunto affixed their hands or their corporate seals duly attested to by their proper officers in that behalf, the day and year first above written. This Agreement may be executed in any number of counterparts, no one of which needs to be executed by all the parties, and this Agreement shall be binding upon all the parties with the same force and effect as if all the parties had signed the same document, and each signed counterpart shall constitute an original of this Agreement. MUNICIPAL DISTRICT OF TABER PER: SIGNED, SEALED AND DELIVERED ) In the presence of: ) ) Witness as to the signature of LESSEE

12 12 AFFIDAVIT OF EXECUTION C A N A D A ) PROVINCE OF ALBERTA ) TO WIT: ) I,, of, in the Province of Alberta, MAKE OATH AND SAY: 1. I was personally present and did see named in the within (or annexed) instrument, who is personally known to me to be the person named therein, duly sign and execute the instrument for the purposes named therein. 2. That the same was executed at, in the Province of Alberta, and that I am the subscribing witness thereto. 3. That I know and he is in my belief of the full age of 18 years. SWORN BEFORE ME at the City of ), in the Province ) of Alberta, this day of ), 2015 ) A Commissioner for Oaths in and for the Province of Alberta

13 13 SCHEDULE A Grazing Lands Leased From the Municipal District of Taber Legal Land Location Acres Animal Unit Months (AUM)

14 14 SCHEDULE B - ASSIGNMENT OF LEASE 1. Application for Assignment of Grazing Lease 1.1. An application may be made in writing by an individual Lessee, or by the Personal Representative of a deceased Lessee, for an assignment of a grazing lease; a) To a person who is at least 18 years of age and whose primary residence is within the M.D. of Taber (including municipalities within the boundaries of the M.D. of Taber) and who is a family member of the Lessee including husband, wife, son, daughter, father, mother, brother, sister, son-in-law, daughter-in-law, grandchild, or a combination of the above and, following the approval by the M.D., paying to the M.D. an administration fee of $ per quarter section; and b) In any case on compassionate grounds. 1.2 An application for an assignment of a grazing lease may be made in writing by a corporate Lessee: a) To the shareholders of the corporation in their personal capacity as long as the assignee is a person who is at least 18 years of age and who is a family member of a shareholder of the corporate Lessee including husband, wife, son, daughter, father, mother, brother, sister, son-in-law, daughter-in-law, grandchild or a combination of the above and the following approval by the M.D. of Taber, by paying to the M.D. of Taber an administration fee of $100 per quarter section. b) Corporate Lessee shareholder primary residence requirement determined as per paragraph 22.1 of the Grazing Lease In the event that a corporation Lessee has changed any of its shareholders an application may be made in writing by the original shareholder allowing for the transfer of the share to the new shareholder. The new shareholder must be a person who is at least 18 years of age and who is a family member of the former shareholder including husband, wife, son, daughter, father, mother, brother, sister, son-in-law, daughter-in-law, grandchild, or a combination of the above and following the approval by the M.D. of the transfer of shares there shall be a payment of an administration fee of $ per quarter section to the M.D. of Taber. a) Corporate Lessee shareholder primary residence requirement determined as per paragraph 22.1 of the Grazing Lease. 1.4 Notwithstanding the foregoing, the situation where an individual Lessee or a shareholder of a corporate Lessee dies the beneficiary of the deceased Lessee s interest in the Lease shall have until the expiry of the lease agreement to meet residency requirements contained herein.

15 15 SCHEDULE C Sketch Plan