EXHIBIT 10.21
STATE OF ARKANSAS )
) HUNTING LEASE
COUNTY OF XXXXXXX ) -------------
This Agreement, made and entered into this 20th day of May, 1985, by and
between IP Timberlands Operating Company, Ltd., a Texas limited partnership
(herein called "LESSOR"), and HITECH, Inc., an Arkansas corporation, (herein
called "LESSEE"):
W I T N E S S E T H
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That for the term and in consideration of the rentals hereinafter set
forth, and the covenants, conditions and obligations to be observed and
performed by the LESSEE, the LESSOR does hereby lease and demise unto LESSEE the
exclusive right and privilege of propagating, protecting, hunting, shooting and
taking game and wildfowl from the following described lands of LESSOR in Xxxxxxx
County, Arkansas and more particularly described as follows:
The Southwest 1/4 of the Southwest 1/4 of Section 9; the West l/4,
Southeast 1/4 Southwest l/4, the South l/2 of the Southeast l/4, the East
l/2 of Northeast l/4, and the Northwest l/4 of the Northeast 1/4 of Section
16, all lying in Township 13 South of Range 14 West.
Together with full rights in LESSEE to enter into, upon, over, across and out
said lands solely for the purposes abovedescribed and for none other whatsoever.
(l) LESSEE covenants and agrees to pay as rental to LESSOR at its office at
P.0. Xxx 000, Xxxxxx, Xx. 00000, the sum of EIGHT HUNDRED AND EIGHTY
DOLLARS ($880.00) per annum, in advance.
(2) This Lease shall commence on the 15th day of August, 1985 and, unless
sooner terminated as hereinafter provided, shall expire on the 15th day of
August, 1988.
(3) LESSEE recognizes, understands and acknowledges that LESSOR has acquired
and holds the aforesaid lands for the purpose of planting, growing,
protecting, maintaining, conserving and harvesting therefrom trees, timber,
pulpwood and other forest products, and for other uses in connection with
the operation of its lands, and Lessee agrees that all rights, titles and
privileges hereunder granted are, and shall be, at all times, expressly
subject to Lessor's basic and primary right to prevent any fire, waste,
nuisance, or unnecessary injury to said property or to the commercial
values thereof, and to develope, use, enjoy and protect its said lands
without limitation. Therefore, Lssee's exercise of any of its rights under
this agreement shall in nowise impede or hinder Lessor in the full
enjoyment of said land as above-described, and if in Lessor's land
management operations as aforesaid it becomes necessary, expedient or
advisable for Lessor to prohibit, curtail or suspend all hunting on the
above-described leased premises, Lessor shall have the right so to do upon
written notice thereof to Lessee, or Lessor may cancel this lease as
provided in Paragraph 6 hereof.
(4) Lessee further expressly covenants and agrees:
a. To furnish Lessor a copy of Lessee's Charter and By-Laws if any, and
also annually or on or before the anniversary date hereof a list of the names
and addresses of its membership and of every guest or license to whom the
privileges of hunting on siad lands have been granted by Lessee. While Lessee
shall have the right and privilege of permitting persons of its selection other
than its members to use the land for hunting insofar as its Charter, By-Laws,
rules and regulations permit, it may do so only upon the prior written approval
of Lessor obtained, and any privileges so extended to such other persons by
Lessee shall be strictly subject, as in the case of all of its members, to the
terms, limitations and conditions of this lease. Moreover, the total membership
of Lessee and the total number of additional guests or licensees which Lessee
may invite to use said premises as hereinbefore provided shall be subject to the
approval of Lessor.
b. To use every precaution to protect the aforesaid timber, trees and
forest products from fire or other damage, and to that end, Lessee will assist
and exercise every effort in putting out any fire that may occur on said lands.
In the event that any fire shall be willfully or negligently started or allowed
to escape on said lands by Lessee, Lessor shall have the right to immediately
cancel this Lease without notice, and any unearned rentals theretofore paid
shall be forfeited to Lessor. In addition, Lessor shall be entitled to recover
from Lessee any damages which Lessor sustains as the result of such fire.
c. To assume responsibility, and to pay for any trees, timber or other
forest products that may be cut, used, damaged and/or removed from said lands by
Lessee.
d. To comply, and to require compliance by each and all of its members and
all persons to whom hunting and privileges shall be extended hereunder as
aforesaid, with all laws, rules and regulations now existing or hereinafter
enacted by any county, state or federal authority with respect to its activities
hereunder, and any violation of any such laws, rules or regulations, shall
constitute a material breach of this lease and shall give Lessor the right and
privilege of cancelling this lease, with or without notice, and in such an event
any unearned rentals paid hereunder shall be forfeited to Lessor as liquidated
damages for the breach of this agreement. Bag limits and the length of the
hunting season shall strictly conform to the game laws of the particular county
or counties in which lands are located.
e. To exercise all reasonable precautions in and about the enjoyment of
Lessee's rights hereunder respect to its safety and the safety of others using
said privileges under Lessee's authority.
f. To indemnify, save and hold harmless Lessor from and against any claims,
demands, injuries, damages, costs, fees or expenses on the part of any person or
persons whomsoever, arising out of, or attributable to, the use of this said
land by Lessee, its members and guests, under the terms of this agreement,
whether such liability, claims, loss, injury or damage is caused or alleged to
have been caused in whole or in part by the negligence of Lessee, its agents and
employees.
g. Not to construct or install upon said lands any plantings, food plots,
roads, bridges, fences, camps, buildings, lodges, shelters, docks, piers,
landings or other structures, permanent or temporary, without having first
obtained in writing the consent of Lessor thereto. In the event at any time that
such consent is granted by Lessor, Lessee further Covenants to effect such
construction or installation at its own cost and expense and strictly in
compliance with any specifications, requirements or limitations that shall be
imposed with respect thereto by Lessor, and shall further keep and maintain the
same in a condition of repair, cleanliness and safety agreeable to Lessor or its
duly authorized agents.
h. Not to hinder, impede or deny access to the public to any lake, fishing
or picnic areas that may be located on the lands above-described, or to any
streams that may traverse the same, but no roads or access ways to such lakes,
streams, fishing and/or picnic areas shall be used by the public other than
those designated by Lessor for that purpose; and Lessee covenants and agrees to
use all reasonable means and to cooperate with Lessor's representatives in the
enforcement of such limitations.
i. Not to erect or display any signs or notices that the leased premises
are posted for hunting, except and unless such signs shall be approved by Lessor
and shall clearly bear the name of Lessee. Attached hereto, made part hereof as
Exhibit "A", are two artist renderings of the signs which LESSEE shall be
authorized to place every ONE HUNDRED (100) feet on the leased premises.
(5) It is further stipulated and agreed that (i) wherever herein the word
"Lessee" is used, it is intended, and shall be deemed, to include and shall
be binding upon, Lessee's members, agents, officers, servants, employees,
contractees, invitees, licensees, guests, successors and assigns; and (ii)
wherever herein the word "Lessor" is used, it is intended and shall be
deemed, to include and shall be binding upon, Lessor's successors and
assigns; save and except only in either case those instances wherein the
text clearly indicates a contrary intention.
(6) Anything in this Agreement to the contrary notwithstanding, it is expressly
understood and agreeed that Lessor and Lessee each reserve the right to
cancel this agreement, with or without cause, at any time during the term
hereof after first giving the other party 30 days prior written notice
thereof. In the event of cancellation by Lessor (unless elsewhere herein
expressly provided to the contrary) Lessor covenants and binds itself to
refund unto Lessee any
unearned rentals that might have been theretofore paid. In the event of
cancellation by Lessee all rentals theretofore paid and unearned shall be
forfeited to Lessor as liquidated damages for breach of this agreement, and
shall not be refunded to Lessee.
(7) Upon expiration of the term of this agreement (or of any extension or
renewal thereof), or upon cancellation hereof by either party as
hereinbefore provided, Lessee shall have the privilege for a period of 60
days thereafter to take and remove from the aforesaid property any and all
buildings, structures, equipment or other personal property owned by
Lessee; provided that if Lessee shall fail or refuse to remove the same
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within the period aforesaid, title thereto shall ipso facto vest in Lessor.
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(8) This lease shall not be assignable by Lessee except upon the express
written consent of Lessor.
(9) This lease is made and accepted (i) without any representations or
warranties of any kind on the part of Lessor as to the title or suitability
to the purposes for which the same is granted; and (ii) expressly subject
to any and all existing easements, mortgages, reservations, liens, rights-
of-way, contracts, leases (whether grazing, farming, oil, gas or minerals)
or other encumberances or servitudes now of record or on the ground
affecting the lands herein described, or to any such agreements that may
hereafter be granted from time to time to others by Lessor.
(10) Lessee assumes responsibility for the condition of the premises and Lessor
shall not be liable or responsible for any damages or injuries caused by
any vices or defects therein to the Lessee or to any occupant or to anyone
in or on said premises who derives his right ot be thereon from the Lessee.
(11) Lessor hereby agrees and covenants that due to the nature of Lessee's
business and manufacturing, that Lessor shall do no "Controlled Burning" of
the Leased premises without giving prior notice to LESSEE of not less than
five (5) working days prior to control burning the demises premises.
Nothing in this paragraph shall restrict LESSOR from control burning its
properties as and when it sees fit, but the conditions and covenants in
this paragraph shall simply require LESSOR to give five (5) working day
notice of its intention to so control burn.
IN WITNESS WHEREOF, the parties have caused these presents to be executed
in duplicate originals by their duly authorized representatives on the day and
year first hereinabove set out.
IP TIMBERLANDS OPERATING COMPANY, LTD.
By: IP Forest Resources Company
Its Managing General Partner
By: /s/
---------------------------------
Its Treasurer
LESSOR
WITNESSES:
/s/ Xxxxxxx Xxxxxxx
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/s/ Xxxxx Xxxxxxx
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HITECH, INC.
By: /s/ Xxxx Xxxxxx
---------------------------------
Xxxx Xxxxxx, President
LESSEE
ATTEST: /s/ Xxxxxx X. Xxxx
--------------------------------
Xxxxxx X. Xxxx
Assistant Secretary
WITNESSES:
/s/ Xxxxx X. Xxxxx
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/s/ Xxxxx Xxxxxx
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RENTAL SCHEDULE
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8/15/85 - 8/15/86 - $880.C0 (440 Acres @ $2.00/Ac.)
8/15/86 - 8/15/87 - $880.00 (440 Acres @ $2.00/Ac.)
8/15/87 - 8/15/88 - $880.00 (440 Acres @ $2.00/Ac.
