TAX RECOVERY LAND GRAZING LEASE

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- of (hereinafter referred to as the Lessee ) TAX RECOVERY LAND 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 Schedule A and F for the purpose of grazing livestock TO HAVE AND TO HOLD the Demised Premises for and during the term of years, to be computed from and inclusive of the day of, 20, and from thence forth next ensuing and to be fully completed and ended on the day of, 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, which shall be payable on or before the 15 th of November in each year of the term of this lease.

2 2 THE LESSEE COVENANTS AND AGREES WITH THE LESSOR AS FOLLOWS: 4. PAYMENT OF RENT 4.1. 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 7. CONDITIONS 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 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 Tax Recovery Land Grazing Lease are subject to all MD of Taber bylaws including but limited to the MD of Taber Prairie Conservation Bylaw and Conservation Order. 8. ENTRY AND REPAIR 8.1. 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 condition set out in Section 7, and deemed necessary, the MD of Taber may

3 3 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 Premises, the Lessor may repair damages and recover all amounts expended by it in connection therewith by all remedies available to it for the recovery of rent in arrears THE MD of Taber may enter upon the lands at any time to perform inspections to confirm the compliance with the Tax Recovery Grazing Lease Agreement and the Prairie Conservation Bylaw and/or Conservation Order. 9. MAINTAINING THE CONDITION OF THE LAND 9.1. 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 26 of this agreement and the leasehold rights for the property will be tendered to the public by the Lessor pursuant to Schedule C of this agreement 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 26 of this agreement and the leasehold rights for the property tendered to the public by the Lessor pursuant to Schedule C of this agreement. 10. GRAZING AREA THE Lessee will confine his livestock to the Demised Premises. 11. LIVESTOCK IDENTIFICATION, STOCKING REPORT AND CALCULATIONS OF ANIMAL UNIT MONTHS 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.

4 4 12. FENCES 13. WEEDS 14. ASSIGNMENT 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 THE Lessee will, at his own expense, erect, maintain and keep in good repair all fences and cattle guards installed by current or previous tenant that are necessary to confine the livestock to the Demised Premises THE Lessee will use his best efforts to control all noxious, nuisance, and invasive weeds as defined with the Weed Control Act or any Municipal District of Taber bylaw 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 THE Lessor, in regards to subletting reserves the right to change their policies 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 UPON notification which shall be given in writing by the Lessee to the Lessor that the lease for the Demised Premises is being voluntarily surrendered the Demised Property will be turned back to the Lessor at which time the right to graze the property will be offered to the public as per Schedule C attached herein.

5 ANY future purchase of Tax Recovery Lease Lands, including the Demised Premises held by the Lessee shall be subject to the terms and conditions found within Schedule D attached herein. 15. EXCLUSION OF LIABILITY It is agreed between the Lessor and the Lessee that: 15.1 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. 16. GENERAL INDEMNIFICATION 16.1 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 6 17. CANCELLATION OF LEASE- COMPLICANCE WITH AGREEMENT AND LAW 17.1 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 THE Lessor may terminate a lease and issue a Notice of Cancellation if in its sole discretion is satisfied that; (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) Any portion of the native grassland within the Demised Premises has been broken or cultivated by the Lessee; Any portion of the grassland was mowed, swathed, combined, baled or harvested by the Lessee; 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 pursuant to the Lessor s rules and regulations pertaining to Tax Recovery Lands; 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; A breach or default is made in any of the covenants herein contained by the Lessee; 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. 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;

7 WHERE the Lessor is authorized to terminate a lease under Section 17.4; (a) (b) The Lessor may instead withdraw part of the land from the Lease, and 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. 18. ENCUMBRANCE OF TITLE 18.1 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. 20. RENEWAL OF LEASE 20.1 AN Option to Renew this lease is attached herein as Schedule E of this agreement. THE LESSOR AND THE LESSEE MUTUALLY COVENANT WITH EACH OTHER: 21. IMPROVEMENTS 21.1 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. 22. SURFACE LEASES 22.1 THE Lessor reserves the right to enter into any agreements with respect to geophysical operations, and other operations relating thereto UNTIL February 28, 2016, the Lessee shall be allowed to retain all income

8 8 from Surface Leases existing at the time this Lease is entered, afterwhich all leases will be subject to the provisions of paragraph Further, should the Lessor negotiate a higher rent on the said existing surface leases, any increase in lease payment shall be retained for the benefit of the Lessor SUBJECT to paragraph 22.2, the Lessor will receive one hundred percent (100%) of all income from all existing surface leases and new surface leases and shall pay to the Lessee the sum of $ each year for each existing surface lease site IN addition to any compensation payable to the Lessee under paragraph 22.3, if any new well sites are established on the Demised Premises, and if the new well site results in additional compensation being paid to the Lessor by the surface lease holder, then the Lessor will pay to the Lessee an additional $ per new well site surface lease, plus any compensation paid by a surface leaseholder for nuisance, inconvenience and adverse effect in the first year of the establishment of each new well site surface lease. For greater certainty, the parties acknowledge that surface leaseholders do not normally pay compensation for additional wells drilled in an area that falls within an existing surface lease and accordingly, no additional compensation will be paid by the Lessor to the Lessee for additional wells drilled on existing well site pads, unless the surface leaseholder who drills the new well pays additional compensation to the Lessor NOTWITHSTANDING the foregoing, all monies received for seismic activity on the Demised Premises will be payable to the Lessee IN return for the foregoing compensation the Lessee agrees to use reasonable efforts to monitor the use of the lease by any surface leaseholder and will immediately report to the Lessor any instances of misuse or problems arising from use of the Demised Premises by a surface leaseholder IT is further agreed that the payments to the Lessee, as outlined above, will be paid on the 1 st day of December in each year. Should the 1 st day of December not be a business day for the Lessor, the payment will be made on the 1 st business day following December 1 st in each year IT is further agreed that the Lessor reserves the right to enter the Demised Premises and test for and remove any sand, gravel or rock on its own accord or enter into any agreement for the removal of the same. No compensation will be paid to the Lessee for sand, gravel, or rock removed from the Demised Premises by the Lessor IT is further agreed that all revenue or income paid to the Lessor by a third party in relation to pipelines above or below the surface of the Demised Premises shall be the property of the Lessor, except that any damages or

9 9 23. SURRENDER compensation received from a third party in relation to ground disturbance caused by installation of pipelines shall be paid to the Lessee IT is further agreed that all other revenues generated or related to the Demised Premises, that are not specifically addressed in this agreement shall be the property of the Lessor 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 25. INSOLVENCY 26. DEFAULT 24.1 IF the Lessee abandons or removes himself from the 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 THAT the Lessee covenants that during the term hereby granted if the Lessee s goods and chattels on the Demised Premises become liable to distress or 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 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. The Lease will be deemed cancelled ninety days following the receipt of the said Notice.

10 NON-WAIVER 27.1 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. 28. TERMINATION OF LEASE DUE TO SALE OF LAND 29. NOTICES 28.1 SHOULD the Lessor sell the Demised Premises or require the Demised Premises for any purpose other than grazing at any time during the term of this Lease, the Lessor may terminate this Lease by giving notice in writing to the Lessee, one year prior to date of termination, personally delivered or mailed to the Lessee at the address herein being. The Lessee agrees to allow prospective buyers reasonable access and cooperate with the efforts of the Lessor to sell the Demised Premises. Further, the Lessor covenants that the said premises, subject to termination, shall not subsequently be sold or leased for either grazing or cultivation purposes 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 1T2 and will be deemed to be received on the fifth day following the date posted 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 fifth 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.

11 WORDING 31. DEFINITION 32. RESIDENCY 30.1 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 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 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); 32.2 NOTWITHSTANDING paragraph 32.1, on all new tax recovery lands being transferred to the Lessor, any existing non-resident Lessee 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 ALL Grazing Association Lessees incorporated prior to September 30, 2006 shall be permitted to have members who are non-resident if permitted to do so by the Association bylaws ALL Grazing Association Lessees incorporated after September 30, 2006 shall be required to ensure all members of the association meet the residency requirement in paragraph 32.1 above CORPORATE Lessees shall be deemed to have met the residency requirement found within paragraph 31.1 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.

12 CORPORATE LESSEES 33.1 NOTWITHSTANDING anything to the contrary in this Lease, any transfer of shares by a shareholder of the corporate lessee will be deemed to be an assignment of the Lease and will require an application for an assignment to be made by the transferor of the shares as per Schedule B herein. Failure to make such an application will be a default under this Lease ALL corporate Lessees shall provide to the Lessor a list of each shareholder along with their corresponding corporate interest and primary residence addresses, which lists shall be provided by no later than December 31 st in each year during the term of this Lease. 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

13 13 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 ), 20 ) A Commissioner for Oaths in and for the Province of Alberta

14 14 SCHEDULE A Grazing Lands Leased From the Municipal District of Taber Legal Land Location Acres A.U.M

15 15 SCHEDULE B M.D. OF TABER - ASSIGNMENT OF LEASE POLICIES 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, and c) Notwithstanding the foregoing a personal representative of an estate of a deceased leaseholder must make application within 18 months for the date of death of the leaseholder to make an assignment of a lease. 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 32.1 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.

16 16 a) Corporate Lessee shareholder primary residence requirement determined as per paragraph 32.1 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. 1.5 Notwithstanding any of the foregoing paragraphs, following the transfer of the Tax Recovery Lands from the Government of Alberta to the Municipal District of Taber a Lessee may assign their leasehold interest, at any time, in accordance with Section 32 of the Tax Recovery Land Lease Grazing Lease Agreement to any assignee provided that: a) It is by way of a private sale based upon market value; i. Market value price for the leasehold interest is to be determined by a real estate appraisal and set by Resolution of Council after taking into account all pertinent information regarding the land. The passing of such Resolution not to be unreasonably withheld; b) Or it is by way of public auction; c) All costs associated with determining the market value of the leasehold interest and the execution of assignment shall be borne either by the seller or the purchaser of the leasehold interest; d) That any purchaser (assignee) will meet the residency requirements as outlined in the preceding paragraphs; e) The assignment of the leasehold interest is approved by Resolution of Council; f) An assignment fee of $ (one hundred and fifty dollars) per Animal Unit Month (A.U.M.) is paid. 1.6 Notwithstanding any of the foregoing paragraphs, following the completion of the Tax Recovery Land transfer process each Lessee may make application to the Municipal District of Taber to purchase Tax Recovery Lands leased by them in the manner and form found within Schedule D herein. 2. Grazing Leases 2.1. An individual or corporation applying for a grazing lease shall supply the M.D. of Taber with proof of ownership of the applicant's livestock outlining its brand, ear tag, or tattoo; 2.2. Failure of the applicant to provide such proof will result in the rejection of the grazing lease application.

17 17 SCHEDULE C Tender Policy 1. The following are the procedures for tendering; a) Property Leases will be advertised for two consecutive weeks in the local newspaper, the advertisement will include: i. The legal land description of the property lease being offered for tender, ii. The date and time the tender for the property lease closes, iii. The street address and mailing address of the Municipal District of Taber Administration Office, iv. The residency requirements: Eligible Lessees shall be persons who are at least eighteen (18) years of age whose primary residence is within the M.D. of Taber (including municipalities within the boundaries of the M.D. of Taber), b) Sealed tenders, inclusive of the full tendered amount, will be accepted in person at the Municipal District of Taber Administration Office during office hours or by mail, c) Upon arrival at the MD of Taber Administration Office tenders will be date and time stamped, d) The Tender opening will be open to the public, e) The highest value tender will not be accepted by Council until conditions found within Section 32 of the Grazing Lease are confirmed, f) The highest value tender will be confirmed by Resolution of Council, g) Both successful and unsuccessful tenders will be notified.

18 18 SCHEDULE D SALE OF TAX RECOVERY LEASE LANDS The disposition process for Tax Recovery Lease Land Leaseholders who wish to obtain title to Tax Recovery Land will be determined as follows: 1. No offers to purchase will be considered by the Municipal District of Taber until all Tax Recovery Land held by the Province has been transferred to the municipality. 2. The current lease holder will make application to purchase the lease land by way of a written request to Municipal Council. 3. Administration will obtain a real estate estimate of value for any tax recovery lands requested to be purchased. Costs for determining the real estate estimate of value to be borne by the Leaseholder. 4. After receiving the real estate estimate of value for both the land and improvements the Municipal Council will establish a sale price for the lands by crediting the depreciated replacement value of the improvements made on the land by the leaseholder over the term of the lease to the appraised market value of the land. 5. The Leaseholder will determine whether or not to proceed with the sale of the lease land by way of written notice in the affirmative or negative to the M.D. of Taber once they have received the sale price for the land from the M.D. of Taber. 6. The Municipal District of Taber may determine to withhold parcels from any sale including: a) Parcels adjacent to a river or other named water body; b) Parcels with unique environmental or topographical features including, but not limited to, those with coulee complexes or river breaks; c) Parcel with erosive or marginal soils; d) Parcels with a low productivity rating as established by M.D. of Taber assessment staff; and e) For any other purpose determined by M.D. of Taber Council 7. Lands determined to be of a sensitive nature by M.D. of Taber Council to be sold subject to the registration of a restricted covenant prohibiting the breaking of native grass. 8. If the leaseholder does not proceed with the purchase of the property once they have committed to do so after receiving the real estate estimate of value and after giving a written commitment as described within paragraph 4 of this schedule the leasehold rights to the property in question will be tendered to the public pursuant to the provisions of Schedule C, with the net proceeds of the tender being retained by the leaseholder less the assignment fee of $ (one hundred and fifty dollars) per Animal Unit Month (A.U.M.) being retained by the M.D. of Taber. 9. Individuals may make application to the Municipal District of Taber to purchase Tax Recovery Lands prior to the expiry of their lease with Sustainable Resource Development by signing a consent to withdraw from their SRD lease and entering into this lease agreement, whereby all lease conditions will apply including the purchase of tax recovery lands held by them.

19 SCHEDULE E OPTION TO RENEW LEASE THIS AGREEMENT 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 ) WHEREAS by a TAX RECOVERY LAND GRAZING LEASE (hereinafter referred to as the Lease ) dated, 20 the Lessee leased from the Lessor certain lands (hereinafter referred to as the Leased Premises described within SHEDULE A of the Lease for and during a term (the Term ) expiring on February 28, AND WHEREAS the Lessor has agreed to provide the Lessee with an option to renew the Lease for a further Term of 10 years from March 1, 2016 and ending on February 28, 2026 on the Terms and Conditions herein set forth; NOW THEREFORE in consideration of the mutual covenants and agreements herein contained and for other good and valuable consideration (the receipt of which is hereby acknowledged), the parties hereto agree as follows: 1. Provided that the Lessee is not then in default under the Lease, the Lessor hereby grants to the Lessee an option (hereinafter referred to as the Option ) to renew the Lease for the Renewal Term. 2. The Option to be automatically exercised at the end of the Lease. 3. The Terms and Conditions of the Lease during the Renewal Term shall be the same as in the Lease except as to rental which shall be agreed to between the Lessor and the Lessee, and except as to any further rights of renewal. 4. This Agreement expresses the entire agreement between the parties concerning the subject matter hereof and supersedes all previous agreements, whether written or oral, between the parties respecting the subject matter hereof. 5. The Lessor and Lessee hereby covenant that the Lease is in full force and effect, unamended, except as expressly provided for herein. MUNICIPAL DISTRICT OF TABER SIGNED, SEALED AND DELIVERED ) In the presence of: ) ) Witness as to the signature of LESSEE

20 20 SCHEDULE F (Sketch Plan)