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HomeMy WebLinkAboutMO # 1700155087 MUNICIPAL ORDER NO. 1700 A MUNICIPAL ORDER OF THE CITY COMMISSION OF THE CITY OF PADUCAH, KENTUCKY APPROVING A FIRST AMENDMENT TO FARM LEASE AMONG THE CITY OF PADUCAH, KENTUCKY, AND JOSH GOODWIN WITH RESPECT TO FARM LAND GENERALLY REFERRED TO AS THE "LINDSEY FARM," AND AUTHORIZING THE EXECUTION OF THE FIRST AMENDMENT WHEREAS, On January 1, 2010, the City of Paducah, Kentucky ("City"), and Josh Goodwin (the "Lessee") entered into a Farm Lease Agreement (the "Farm Lease"); and WHEREAS, the City and Lessee desire to amend the Farm Lease, which amendment is in the best interest of the City and its residents. NOW THEREFORE, BE IT ORDERED BY THE CITY COMMISSION OF THE CITY OF PADUCAH, KENTUCKY, AS FOLLOWS: Section 1. Recitals and Authorization. The City hereby approves the First Amendment to Farm Lease Agreement among the City and Goodwin (the "First Amendment") in substantially the form attached hereto as Exhibit A and made part hereof. It is hereby found and determined that it is in the best interest of the City and its residents to enter into the First Amendment for the purposes therein specified, and the execution and delivery of the First Amendment is hereby authorized and approved. The Mayor and Clerk of the City are hereby authorized to execute the First Amendment with such changes in the First Amendment not inconsistent with this Order and not substantially adverse to the City as may be approved by the officials executing same on behalf of the City. The approval of such changes by said officials, and that such are not substantially adverse to the City, shall be conclusively evidenced by the execution of the First Amendment by such officials. Section 2. Severability. If any section, paragraph or provision of this Order shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph or provision shall not affect any of the remaining provisions of this Order. Section 3. Compliance With Open Meetings Laws. This City Commission hereby finds and determines that all formal actions relative to the adoption of this Order were taken in an open meeting of this City Commission, and that all deliberations of this City Commission and of its committees, if any, which resulted in formal action, were in meetings open to the public, in full compliance with applicable legal requirements. Section 4. Conflicts. All ordinances, resolutions, orders or parts thereof in conflict with the provisions of this Order are, to the extent of such conflict, hereby repealed and the provisions of this Order shall prevail and be given effect. Section 5. Effective Date. This Order shall be in full force and effect from and after the date of its adoption. ATTEST: Tammara S. Sanderson, City Clerk Adopted by the Board of Commissioners, December 18, 2012 Recorded by Tammara S. Sanderson, City Clerk, December 18, 2012 \mo\lease-lindsay farm 2013 amend 153766 EXHIBIT A FIRST AMENDMENT TO FARM LEASE AGREEMENT THIS FIRST AMENDMENT TO FARM LEASE AGREEMENT ("Amendment") is made and entered into this day of , 2012, by and between CITY OF PADUCAH, NTUCKY, a municipal corporation of the second class existing under the laws of e onwealth of Kentucky, and a body politic and corporate, of Post Office Box 67, Pad ah, Kentucky 42002-2267, hereinafter referred to as "Lessor," and JOSH GOO IN, whose address is , h einafter referred as "Lessee." (Lessor and Lessee may collectively be referred to as the "P ies" and singularly e referred to as a "Party"). Recitals A. On January 1, 2010, Lessor and Lessee entered to a Farm Lease Agreement (hereina r referred to as the "Lease"), which Lease is attac ed hereto as Exhibit "A." Capitalized terms sed herein but not defined shall have the meanin set forth in the Lease. B. The ease had an initial term beginning J ary 1, 2010, and ending December 31, 2010. Lesso has continued to lease the Farm La to Lessee and Lessee has continued to accept the lease o the Farm Land from Lessor pars t to the Lease since January 1, 2010, to date. C. By this Am din and for the p ose of benefitting both parties, Lessor and Lessee desire to amend the ease as more parti larly set forth herein. NOW, THEREFORE, in ons of $1.00, the foregoing premises, the promises and covenants contained herein, d for her valuable consideration, the receipt of which is hereby acknowledged by each party, hep ies do covenant and agree as follows: 1. Amendment to Amendment, Lessor and Lessee do hereby and ending December 31, 2014. of Lease to reflect new "Term". By this i a new lease term beginning January 1, 2013, 2. Amendment to Section 3 of the ease to reflect new "Cash Rent". Lessee agrees to pay to Lessor annual cash re in an amount e ual to the total of (i) 25% of the yearly soybean and corn yield produced fro the Farm Land (ii) $60\ethe 00 per acre of winter wheat planted on the Farm Land. Cash re t shall be paid to Lesequal installments, with the first installment due on or befor March 30th, of each ylease term and the second installment due ori or before De ember 31St of each yearse term. If eligible, Lessor shall be entitled toreceive 2 o of all government subsied from the farming of the Farm Land. Lessee shall pr ptly pay Lessor its share ofment subsidies upon receipt of same. Lessee shall pro e annually to Lessor writtetation of the aforesaid crop yields and plantings. 3. Amendment to Section 9 of Lease to reflect new "Termination" Provisions. Either P y shall have the right to terminate this lease in w ole only upon thirty (30) days prior written otice to the other party on November 1St and May 1St of each year of the Term. In the eve of such termination by Lessor, Lessor shall compensa\eand for damage to planted crops ac rding to the per acre formula as supplied by the US Deof Agriculture Farm Service gency agent or representative of the McCracken Countwhose opinion shall be final, ess all government subsidies realized from the farming om Land. Such compensatio will be restricted to only those acres of crops planted, in thd damaged as TT a direct res It of Lessor's termination of this Agreement. In the event termination by Lessee, L see shall not be entitled to any compensation for damage tcrops or any other d ages for his termination of this lease. In the event of terminatithis Section 9 by eithe Party, cash rent shall be prorated through the date that possessioed to Lessor. 4. Reaffirmation of Other Terms and Provisions of Lease. Ex pt for the arrlent herein, all other terms and provisions under Lease shall remain in full, force and Accordingly, all parties do hereby ratify and reaffirm all of such terms and provisions, incorporate by reference all of such terms as if recited verbatim herein. 2 153766 FIRST AMENDMENT TO FARM LEASE AGREEMENT THIS FIRST AMENDMENT O FARM LEASE A9MEMENT ("Amendment") is made and entered into this IL day of �4-Aj �, 201 by and between CITY OF PADUCAH, KENTUCKY, a municipal corporation of the second class existing under the laws of the Commonwealth of Kentucky, and a body politic and corporate, of Post Office Box 2267, Paducah, Kentucky 42002-2267, hereina er a errs} as "Lessor," and JOSH GOODWIN, whose address is b[Il% rel i / a Z/ 2--7 , hereinafter referred to as "Lessee." (Lessor and Lessee may collectively be referred to as the "Parties" and singularly be referred to as a "Party"). Recitals A. Effective as of Januaryl, 2010, Lessor and Lessee entered into a Farm Lease Agreement (the "Lease"), the Lease is attached hereto as Exhibit A. B. The Lease had an initial term ending December 31, 2010. C. Subsequently, the Lease was renewed for a second term beginning January 1, 2011, and ending December 31, 2011, and a third term beginning January 1. 2012, and ending December 31, 2012. The renewals are attached hereto as Exhibit B. The Lease and all renewals shall collectively be referred to as the "Leases." Capitalized terms used herein but not defined shall have the meanings set forth in the Leases. D. By this Amendment, and for the purpose of benefitting both parties, Lessor and Lessee desire to amend the Leases, effective as of January 1, 2013, as more particularly set forth herein. NOW, THEREFORE, in consideration of $1.00, the foregoing premises, the promises and covenants contained herein, and for other valuable consideration, the receipt of which is hereby acknowledged by each party, the parties do covenant and agree as follows: 1. Amendment to Section 2 of Lease to reflect new "Term". By this Amendment, Lessor and Lessee do hereby establish a new lease term beginning January 1, 2013, and ending December 31, 2014. 2. Amendment to Section 3 of the Leases to reflect new "Cash Rent' Lessee agrees to pay to Lessor annual cash rent in an amount equal to the total of (i) 25% of the yearly soybean and corn yield produced from the Farm Land and (ii) $60.00 per acre of winter wheat planted on the Farm Land. Cash rent shall be paid to Lessor in two equal installments, with the first installment due on or before March 30th, of each year of the lease term and the second installment due on or before December 31St of each year of the lease term. If eligible, Lessor °r shall be entitled to receive 25% of all government subsidies realized from the farming of the Farm Land. Lessee shall promptly pay Lessor its share of all government subsidies upon receipt of same. Lessee shall provide annually to Lessor written documentation of the aforesaid crop yields and plantings. 3. Amendment to Section 9 of the Leases to reflect new "Termination" Provisions. Either Party shall have the right to terminate this lease in whole only upon thirty (30) days prior written notice to the other party on November 1St and May 1St of each year of the Term. In the event of such termination by Lessor, Lessor shall compensate Lessee for damage to planted crops according to the per acre formula as supplied by the US Department of Agriculture Farm Service Agency agent or representative of the McCracken County Coop whose opinion shall be final, less all government subsidies realized from the farming of the Farm Land. Such compensation will be restricted to only those acres of crops planted, in the field, and damaged as a direct result of Lessor's termination of this Agreement. In the event of such termination by Lessee, Lessee shall not be entitled to any compensation for damage to planted crops or any other damages for his termination of this lease. In the event of termination under this Section 9 by either Party, cash rent shall be prorated through the date that possession is delivered to Lessor. 4. Reaffirmation of Other Terms and Provisions of the Leases. Except for the Amendment herein, all other terms and provisions under the Leases shall remain in full force and effect. Accordingly, all parties do hereby ratify and reaffirm all of such terms and provisions, and incorporate by reference all of such terms as if recited verbatim herein. IN WITNESS WIEREOF, the parties hereto have executed this Amendment to Leases by the signatures signed below. LESSOR: CITY OF P. III LESSEE: v JOS GOOD 2 Kc 121240 FARM LEASE AGREEN FVT T S FARM LEASE AGREEMENT made and executed on this —;96-4-y of 2010, by and between CITY OF PADUCA% KENTUCKY, a municipal co ration of the second class existing under the laws of the Commonwealth of Kentucky, and a body politic and corporate, of Post Office Box 2267, Paducah, Kentucky 42002-2267, hereinafter referred to as "Lessor," and JOSH GOODWIN, whose address is 8085 Old Mayfield Road Paducah, KY 42003 . hereinafter referred to as "Lessee:' The parties We as follows: Section 1: Demise, Descriatim and Use of Premises Lessor demises and lets to Lessee, to occupy and to use for agricultural purposes only and for no other purpose, approximately 120+/- acres of ground which is commonly referred to as the "Lindsey Farm" in McCracken County, Kentucky, excepting any lands sold for right of way (hereinafter referred to as the "Farr, Land"). Lessee covenants that each and every use of the Farm Land hereunder shall comply m all material respects with all applicable federal, state, and local laws. Lessee accepts the Farm Land and its suitability for growing crops "AS LS", and assumes all risks with regard to same. Section 2• Term The term of this lease shall commence on January 1, 2010 and shall terminate on December 31, 2010. Section 3: Rent Lessee agrees to pay to Lessor an annual rental of $7,200.00, which rental shall be paid to Lessor in two installments of $3,600.00, with the first installment due on or before March 30, 2010, and the second installruent due on or before December 31, 2010. Lessee shall be9entitled to all government subsidies realized from the farming of the Fama Land. Section 4: Insurance The Lessee shall procure and maintain at its costs comprehensive general liability coverage covering Lessee's use of the Farm Land. The limits of coverage shall not be less than Three Hundred Thousand Dollars ($300,000.00) for a combined single limit Lessee shall be responsible for providing casualty insurance for its equipment and other property. The coverage to be provided hereunder shall be in such form and amounts as are acceptable to Lessor, and shall be with such insurers as may be satisfactory to Lessor. The Lessor shall be named as an insured under the coverage provided It is further agreed that the policy providing such coverage shall contain a provision whereby the policy cannot be canceled except after thirty (30) days' written notice to Lessor. The Lessee agrees that in the event Lessee shall fail to procure such insurance coverage or fail to pay the premium for such coverage, the Lessor shall have the right to procure said coverage or pay such premium, and Lessor shall thereafter have the right to seek immediate reimbursement from the Lessee for any costs incurred. Section 5; Indemnification The Lessee hereby releases and discharges Lessor from and shall fully protect, indemnify and keep and save Lessor harmless from any and all costs (including attorneys' fees), charges, expenses, penalties, damages, claims, demands, and causes of action of every nature whatsoever, arising out of matters or conditions under control of or caused by any act or omission of Lessee or Lessee's representatives, assigns, agents, servants, employees, licensees, invitees, and any other person or persons associated with Lessee; and Lessee shall farther protect, fully indemnify, and save forever harmless Lessor from any and all liability, costs, damages, and expenses, including attorneys' fees incident to injury (including injury resulting in death) of persons or damage to or destruction of property incident to, arising out of or anyway connected with Lessee's use and occupancy or right of use and occupancy of the Farm Land (whether by omission or commission and irrespective of exclusive or nonexclusive right herein) including but not limited to Lessee's farming operations on the Farm Land Section 6: Hazardous Materials Lessee shall not cause or permit any Hazardous Material to be located or disposed of on, under or at the Farm Land or any part thereof in noncompliance with all federal, state, and local environmental law. For the purpose of this agreement, "Hazardous Material" shall mean any hazardous, toxic or dangerous waste, substance or material defined as such in, or for purposes of, any Environmental Law. "Environmental Law" shall mean any federal, state, or local statute, law, ordinance, code, rule, regulation, order, or decree regulating, relating to, or imposing liability or standards of conduct concerning any Hazardous Material, as now or at any time hereafter in effect. Provided, however, that Lessee shall have the right to use agricultural products on the Farm Land in the ordinary course of farming, if such use is in accordance with the law. Lessee agrees to indemnify and hold Lessor harmless from and against any and all losses, liabilities, damages, injuries, costs, expenses (including without limitation reasonable attorneys' and consultant fees), claims for damage to the environment, claims for fines or civil penalties, costs of any settlement or judgment, and claims of any and every kind whatsoever, paid, incurred or suffered by Lessor or asserted against Lessor by any person, entity or governmental agency for, with respect to, or as a direct or indirect result of, the presence on or under the Farm Land of, or the actual or threatened escape, spillage, discharge, emission, or release from the Farm Land of, or transportation of; any Hazardous Material or any noncompliance with any Eaviroamental Law. Section 7: Lessee's Duties in Farminz the Farm Land Lessee does hereby further covenant and agree to comply with and satisfy all of the hereinafter defined obligations which shall govern Lessee's use of the Farm Land: A. Lessee shall cultivate the Farm Land in a reasonable and prudent manner in accordance with generally accepted farming standards and practices, at Lessee's sole cost. Lessee shall faithfully cultivate the Farm Land and harvest the crops planted thereon in a timely,. thorough, and reasonable manner; B. Lessee shall utilize the Farm Land in such manner as to prevent injury to any trees now located on the Farm Land; C. Lessee shall comply with pollution control and environmeatal protection requirements of local, state, and federal agencies, as well as to implement soil erosion control practices which comply with soil loss standards mandated or recommended by local, state, and federal agencies; D. Lessee shall maintain and keep open all ditches, tile drains, tile outlets, and grass waterways in the same condition as presently exists; E. Lessee shall use prudence and care in transporting, storing, handling, and applying all fe dlizers, pesticides, herbicides, and other chemicals and similar substances upon the Farm Land; F. Lessee shall follow all label instructions for the use of farming materials in order to avoid injury or damages to persons or property on the Farm Land and adjoining areas, and to comply with all laws pertaining to pesticide and herbicide training, licensing, storage, and usage; G. Lessee shall preserve the Farm Land and prevent waste, loss, or damage to the Farm Land, and keep the Farm Land free from any lien or other adverse interest created through Lessee, and shall indemnify Lessor from any lien or adverse interest created through Lessee; and Section 8: De ault If at any time Lessee shall fan or refuse to pay or cause to be paid any payment of rent due under this lease within 15 days of when same becomes due, or Lessee faits to remedy any default with respect to the performance of Lessee's obligations under Section 7 within 24 hours after notice is given by the Lessor, or Lessee fails to remedy any default with respect to any other obligation herein assumed by Lessee within 10 days after notice thereof is given by the Lessor, or bankruptcy proceedings are voluntarily or involuntarily commenced against Lessee, then in any of such events, the Lessor shall have the right, at its option, and without limiting itself in the exercise of any other right or remedy it may have on account of such breach or default, and without any further demand or notice, to declare this lease and Lessee's rights herein terminated Thereafter, Lessor shall have the right to reenter the Farm Land with or without due process of law and take possession of the Farm Land,'and eject Lessee and all other parties in possession from the Farm Land without being liable to any prosecution for said reentry or trespass, and without prejudice to any remedy provided to Lessor by law. Section 9: Termination Lessor shall have the right to terminate the rights granted herein in whole or in part at any time upon thirty (30) days written notice to Lessee. In such event, Lessor shall compensate Lessee for damage to planted crops according to the per acre forumia as supplied by the US Department of Agriculture Fano. Service Agency agent or representative of the McCracken County Coop whose opinion shall be final, less all government subsidies realized from the farming of the Farm Land. Such compensation will be restricted to only those acres of crops planted, in the field, and damaged as a direct result of Lessor's termination of this Agreement. Section 10: Entry Lessor or its designees shall have the right to enter upon the Farm Land at any time during the term of this agreement and without notice to conduct such inspections or testing as it deems appropriate. Lessee shall not in anyway interfere with Lessor's or its designees inspections or testing Section 11: Binding Effect --Assignment The provisions of this lease shall be binding on the heirs, executors, administrators, and assigns of the parties. Lessee shall not assign this Lease or any rights hereunder without the prior written consent of Lessor. In the event Lessor sells the Farm Land, such sale shall be subject to this lease. Section 12: Governing Law This lease shall be governed by the laws of the state of Kentucky, both as to its ixnterpretation and enforcement. The venue of any action relating to this lease shall be exclusively in a state court located in McCracken County, Kentucky. 4 Section 13: Leval Fees and Expenses If Lessor shall employ legal counsel to enforce Lessor's rights and remedies under this Lease, Lessor shall be entitled to recover the reasonable attomey's fees incurred by Lessor, together with any and all other costs and expenses incurred by Lessor in connection with the enforcement of this Agreement. Section 14: Entire A¢reement 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. This lease may not be modified - except by written modification signed by all parties. Section 1S: Effective Date The effective date of this agreement shall be the date of execution by the parties. Section 15: Holdover Any holdover by Lessee following the expiration of the team of this lease shall be on a month to month basis, subject to either party's right to terminate this agreement upon giving a thirty (30) day notice to terminate. VATNESB. whereof, each party to this lease has caused it to be executed on the a"6 day of _, 2010. LESSEE: _004 40SA GOO WIN 5 EXHIBIT B 4 moi/ /if. V. i -W von. 121240 FARM LEASE AGREEMENT THIS FARM LEASE AGREEMENT made and executed on this 95116y of i'fM tar 2011, by and between CITYOF PADUCAH, JOU4TUCKY, a municipal corporation ofilie second class wdsting under the laws of the Commonwealth of Kentucky, and a body politic and corporate, of Post Office Box 2267, Paducah, Kentucky 42002-2267, beremaha referred to as "Lessor," and JOSH GOODWIN, whose address is 8085 Old Mayfield Road, Paducah, Kentucky 42003, hereinafter refer ed to as "Lessee." The parties agree as follows: Section 1: Demise. Description. and Use of Premises Lessor demises and lets to Lessee, to occupy and to use for agricultural purposes only and for no other purpose, approximately 120+1- acres of ground which is commonly referred to as the "Lindsey Farm" in McCracken County, Kentucky, ewcepting azo' lands sold for right of way (hereinafter referred to as the "Farm Laud"}. Lessee covenants that each and every use of the Farm Land hereunder shall comply in all material respects with all applicable federal, state, and local laws. Lessee accepts the Farm Land and its suitability for growing crops "AS IS", and assumes all risks with regard to saute. Section 2• Term The term of this lease shall commence on January 1, 2011 and shall terminate on December 31, 2011. Section 3• R_ ent Lessee agrees to pay to Lessor an annual rental of $7,400.00, which rental shall be paid to Lessor in two installments of $3,700.00, with the fust installment due on or before March 30, 2011, acid the second installment due on or before December 31, 2011. Lessee shall beentitled to all government subsidies realized from the farming of the Farm Land. - Section 4: Insurance The Lessee shall procure and maintain at its costs comprehensive general liability coverage covering Lessee's use of the Farm Land The limits of coverage shall not be less than Tbree Hundred Thousand Dollars ($300,000.00) for a combined single limit Lessee shall be responsible for providing casualty insurance for its equipment and other property. after notice is given by the Lessor, or Lessee fails to remedy any default with respect to any other obligation herein assumed by Lessee within 10 days after notice thereof is given by the Lessor, or bankruptcy proceedings are voluntarily or involuntarily commenced against Lessee, then in any of such events, the Lessor shall have the right, at its option, and without limiting itself in the exercise of any other right or remedy it may have on account of such breach or default, and without any further demand or notice, to declare this lease and Lessee's rights herein terminated. - Thereafter, Lessor shall have the right to reenter the Farm Land with or without due process of law and take possession of the Farm Land, and eject Lessee and all other parties in possession from the Farm Land without being liable to any prosecution for said reentry or trespass, and without prejudice to any remedy provided to Lessor by law. Section 9: Termination Lessor shall have the right to terminate the rights granted herein in whole or in part at any time upon thirty (30) days written notice to Lessee. In such event. Lessor shall compensate Lessee for damage to planted crops according to the per acre formula as supplied by the US Department of Agriculture Farm Service Agency agent or representative of the McCracken County Coop whose opinion shall be final, less all government subsidies realized from the fiuming of the Farm Land. Such compensation will be restricted to only those acres of crops planted, in the field, and damaged as a direct result of lessor's termination of this Agreement. Section 10: Entry Lessor or its designees shall have the right to enter upon the Farm Land at any time during the term of this agreement and without notice to conduct such inspections or testing as it deems appropriate. Lessee shall not in anyway interfere with Lessor's or its designees inspections or testing. Section 11: Binding Effect Assignment The provisions of this lease shall be binding on the heirs, execatca, administrators, and assigns of the parties. Lessee shall not assign this Lease or any rights hereunder without the prior written consent of Lessor. In the event Lessor sells the Farm Land, such sale shall be subject to this lease. Section 12: Governing Law This lease shall be governed by the laws of the state of Kentucky, both as to its interpretation and enforcement. The venue of any action relating to this lease shall be exclusively in a state court located in McCracken County, Kentacky. 4 Section 13: Leeal Fees and Expenses If Lessor shall employ legal counsel to enforce Lessor's rights and remedies Under this Lease, Lessor shall be entitled to recover the reasonable attorney's fees incurred by Lessor, together with any and all other costs and expenses incurred by Lessor in connection with the enforcement of this Agreement. �T- Section 14: Entire Asree�nent 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. This lease may not be modified except by written modification signed by all patties. Section 15: Effective Date The effective date of this agreement shall be the date of execution by the parties. Section 16: Holdover Any holdover by Lessee following the expiration of the term of ibis lease shall be on a month to month basis, subject to either party's right to terminate this agreement upon givins a thirty (30) day notice to terminate. S, whereof, each party to this lease has caused it to be executed on the 'i� day of � r 2011. LESSOR: CITY O AD Y By: ` Title:C�-moi LESSEE: 1 , ... . JO GOOD 6 1 121240 FARMLEASEAGREENOW THIS FARM LEASP AGREEMMPF made and executed ou this 2e dayof Decembor 2011, byandbetwom CITY OFPADDCAE61MTUCSY, am nidpal coWomdonof thesecond dorsa dMingunderthelawsofthe CommonwealthofKenacky,adabodypoliticandcolporate,of Pod Office Box 2267, Podu a h, Kentucky 42002-2267, hem refected to as "Ewen,' and JOSS GOODWI K whose address is X89 Old May$eldRooA Paducah. KY 42(03, hereinafter referred to as'Usee." The parties agree as follows` Sectlan 1: Demise. De9eriation. and Use of Premises Lessor demises and leis to Lessee, to occupy and to use far agdcolbud putposes only and far no other purpose, appeaadmately 120+1- mras of Smund wilichis commonly WWW to as the i 'Lindsey Farm" m )&Cmdm Cauaty, Kentacky, wwopting my laude sold for right of way *=nw%w=&vedto as the "Farm lmd'} Lessee covenants 6d ca It sad every uss of die Farm iaadhe►eutlderaballcomplyinallmate>;alrespectswithaIIappliceblefekMtstaie.andlocollaws. ; Lesser: ascents the Farm Land and its suitability for grnwing corps "AS W, andassumes all risks withmga>dto same. Section k Term ThstemtoftWs lease shall commenceonJaauary 1, 2D12and sball Wm nate on Docember31, 2012. Section 3: Rent ' Lessee agrees to pay to Lessor an amnia rental of $7,400B%which rental shall. be puidto i Lmw in two installments of $3,700.00, with the fust illstdment due m or befie March 30, 1.012, and the secondinstallmotddm on ori eforeDecemberU 2012. Lessee shall be endtledto di govemment subsidies realizedfmm the farmingof the Ron Land. ; Section 4: Inu rim Mw L.es= shall pmm and maintain at its costs comprehensive gonad liability - coverage covering i ossea's use of the Fawn La1ai. The limits of coverago dM not be less dine 1i= Beaded Thousand Dolhus ($300,000.00) for a combined single limit. Lessee shall be responsible forproviding casualty ineuance for its equipment and other property. 1 The coverage m be provided her unft shall bein sash farm mdsmotmte as ere =epteble to Lessor, and shall be with such insurers as may be satisfidn to Leaser. The Lessor shall be namiodasaahmmdunderdhecoveragepmvided.ItisfiuWwsgroodihatdopoftpmvicti mmh coverage shall contain a pmvmdm whereby the policy cart be canceled except atter thirty (30) days' written nottceroLesso: The Lessee agrees do&in the event Lessee shall fail toprocans such insurance covemp or to pay do premium far such covanD, doLessor shalt have ta:fight to pmmm said govenV or pay such premiumo, and Lessor shall thereafter have the right to seek imme&tarelmbucsammtfsm &eLemeeforaycostsineutired. Seedon 5: IgdemnMeation T1ceLesseehe+febyrelesses anddischargesI�eseotfaorreanda6all fu11Y1? � keep andsawLessorhannless frammy and dI costs Cmdu ftattomeydfees). charges, expenses, pendd a,damages,dahm,demands,andcausesofaromaofeveaynanwowhatsoomiarisingoutof matters or eondthms under control of at caned by any act or omission of Lessee or Lesseeh mp ue"ve% assigns, agents, servards. employem licensee4 invitees, and any oft person or persons associatedwithLessee; and Lessee shall fmarerprotect, fully indemnifY. andsave- forever hmW= Lessor fmrn any and all habi tyi cods, damages, and expenses, inclu ft atteaneys' thea incident to injury gaduding in jury =Mug in death) of pgrsoog or damage to or desawki n of propedykmderrtto,adsingcutufmaralywayconnectedwitlt mee'suseendoccapaucyord&of use and occupancy of the Farm Land (whether by omission or commissiaa sad impecdve of awk sive ornonaduave nigbt lie=) including but not limited to Lessee's farming operations an the Fawn Land. Section b: Haaardous Materials Lessee shaft rat cause or pem* any Hazarflous Msteoai to be located or disposed of on, under or at the Farm Land or any palm therwf in noncamplianos with alt Waal, alts, and kxml envuonmaentat law. For fhe purpose of this agmemeK Taprd= li!btenial" shall mean any luaedons, to= or dangerous waste, subsUm or matedd de6aed u such 4 Of forpurpomes 04 any Envimimnentel Law. R&vmmvntal We shall mean any federal, date, or local deWQe, law, ordinance, code, rale6 regulation. order. or decreo regulat RS relating to. o• imposing ltabrliity at dandaids of conduct concerning any Hazandous bbtexI4 as now or at any bmebereafter In effect. Provided. however. that Lessee shall have theflgbt to use agricultural products on the Form Land in the ordinaryootrree of fmoing, if ouch use is in aceordarmewith the law. Lasses agrees to kdeannify and hold Lessor hm*u from and agebw any and ail losses, liab Mies,damages.injuries,coats.expenses(+routingwithoutlimitationreasonableattomeya'and corsubat fees), claims for damage to to enviromneK claims for funs orcivii penalties, a costs of my setflement or judgment. and claims of any and every Wnd whooever, paid, incurred or and red by law or asserted Against Lassorby any person, w" or governmead agency fb; with rasped to, oras a direct orindirectresuk of. ftpuence on crunder dw FAM Lad of, artite actud or threatened escape, spillage, dischazge, emission, or abose from the Farm Land of. or transportation of, anyllazzilausMalexid oranynmaomopliancowith =YEAVixWVMWLAW- Section. 7. Lessee's ROOM in. EV_MIBZ the FarmLand Leasee does left Jimber covenant and apee, to comply with ad sRd* all of the hereinafter defined ObHpflow which SbOU govern IA&wo!s use of the Pam Land: A. Lessm shall culdwis to Fam Land In a remoaft and pnWant MMU in MconlanoS with generally scoapiett famu* stanifards and pu9cm at Lessees sole owL Lessm shall bUbfidly cultivate the Fatm, lad and harvest the crops planted thereon in a timely, thorough, and reasonablemanuez, B. Leasee shall uffiwthe Fern Land iasuch mmmatoprevent injury WKWtrees now located on the Form Land-, C. Lessee did comply wi6pollutionewdral and enV1mnMeUWprotection MquWMts Of local, state, andfiderA apncie% awall as tolmPlements011aodancantral practiceawhich comply with soil low standards mandated or scmmmended by local, stsK and federal szeadw; D. Lessee shall maintain and beep open all ditches, the drains, tue outlets, and grass waterways -in the same condition as presently exists; F- In= Shen we paxlence and cm in transporb& awft handing, and applying all fadlimu% pastidderb herWdd%% andother chemicals and Amilar substances upon the Fam Lan F. lasm"Mow all Wwl instracdonsfirthaumofilsaftmateNsin mdwtD avoid Injury ordamagestopersons orp%ftyon WarMlAndandafjoiniagareas. andtocomplywith all laws pertaining tDpcsftdeand herbicide training, licensing, storage, and usage; 0. IA=ee shall preserve the Farm Land and prevent waste, loss, or damage to the Farm Land, and bq to Faun land hw from any lien or other adverse Interest created though Lam and shall hKkmv* Low fi= anylien or adverse interest creWd dwm& Imam and Section St P—ef U"I N at anytime Lam dM fad orzefue to payer cam to be paid my payment of rent due under this lege within 15 days of when cam becomes due, or Lem fails to mmady any default with reaped to the performance of Lessee's obligations under Section 7 within 24 ho= 3 after notice b given by theLewor, or Lessee Ns to remedy any defialtwhhrwppctto anyolher ; ob1hptionlimin assumed by Lam within 10 days afternoticethereofis giva►bytheLesscam, or bankruptcy proceedings are vohmtadly or isvokintatily coonneaced, spot Lasses, then in any of each events, the Ieworsbati have the dA at its option, and withoutlitniting itself in the exudse of any other right or remedy it may have on account of such broach or defit, and without any farther demand or notice, to deuce this lease and Lessee's dsW herein tcardnab d. Ibnaftea', - Lessor shalt have the right to reenter the Famr Land with or without dna process of law and We possession of the Farm Lend, and eject Lessee and all other paries in, possession from the Farm Land without being liable to any prosecution for Wdreentry orirespaes, and withoutprejadwe to any remedy provided to Lessor bylaw. Section 9: Terminatlort Lessor shall have the A&M to terminate the rights grantedhenk in whole Orin part at any time upon fit q (3t)) r ya written notice to lance, rh such event, Learorahall 0011TORM Lessee for damage to planted crap accordingloflroperarrafomrulaassuppliedbythe US Depaitozutof Agticallow Faun Service Agency agent or representative of the McCracken County (coop whose opinion shall be final, less ant government subsldies realized from the farming of the Farm Laod. Suchcompeasation will berestrictedtoonly those amof cropsplaoted, in the field, anddamaged as a directmailt of Lassoes t rmimtion of bis Agseamea Seetion 10: E Lessor Grits desfgnens shallbave rhe4&toenwupartheFarmlandatanry time dumtg s the teen of this apeerowt and without notkato conduct such inspections or testing as it dem appropriate. Lessee shall not in anyway inted= witli'i essor's or its designees inapeotions or testing. ! Section 11: Binding LYfed—Aseianmeat The provisions of this lease shall be binding on the hens, executers, admdebb% and assigns of sire parties. Lessee span not assign this Lease or any rights hereunder without the prior i written conseatof Iessor. in the eventLesmrsells theFarmLand,such We shah be fubjerx Whis i lease. Section II Goveraints Law This lease shall be governed by do laws of the state of Kauucky, both as to its iatterpretation and enforcement. The venue of any action relating to this lease shall be exclusively in a state court located in McCracken County, Kentucky. 4 Section 13: Legal Fees and Mmenses ffLessarshA employ legalcwma to a&= igoodsu*u andamuxo mderUs Lease, Lcum shall be entitled m recover dm reasonable mame s few koumd. by feasor, toga with any and all d er costs and expenses kamed by Lessor is cmnention wl& die enforcement of this Agreement. Section 14: Entire Agreement 116 Tease shalt coasdaw the enm qpuma between the part. Any prior tmdersteruTingornpae» rattan of w►ykkdpmwft t md* of Mbmstn$ notbe binding upondAwpattyexcept tn8:eexbmtb izLd* km WsknemaynotbemoMed except by wriam modificadon signed byallparties. Section 16: Effective Date i The effective dawof dus speameatdM be t z data of exemdm by thepatties. Section 16: Holdover ' Any hollow by Lessee curing fhe expbfm of die tmn of this base sball be at a month tp mandtbasis,sab,�ct toeitherpart�sriglrttoxuninate� agreementupon gives a thirty (30) day notice to terminate. iTNFSS , wherect each party io ibis lease has caused it to be executed on the "ay cf 2011. I FSSUIb' f'7'rVnRP iR'.AH CRY r\ Bir _ 4Z Title ' r + 5 i �T�