BLUE SKY XXXXX XXXXX XXX
XX 0 Xxxxxx, Xxxxxxx X0X 0X0 Telephone / Fax: (000) 000-0000
THIS AGREEMENT -- TO MANAGE BISON AT BLUE SKY BISON RANCH LTD.
This Agreement made and entered into this 1st day of December , 1998 by and
between R & R Ranching, Inc., hereinafter called Owner, and Blue Sky Bison
Ranch Ltd., hereinafter called Blue Sky, WITNESSETH:
A. Blue Sky operates a ranch enterprise that is engaged in the raising of
bison livestock.
B. The Owner is the owner of Bison carrying the identifying marks by ear tags
more particularly described and listed in Schedule A (the Bison) which will be
attached hereto on January 15, 1999.
C. The purpose and intent of This Agreement is that the Owner is desirous of
retaining the services of Blue Sky to provide grazing facilities and care for
the Bison on the terms and conditions set out in This Agreement.
Now therefore, in consideration of the mutual promises and covenants to be
performed by the respective parties, and the agreements and conditions
hereinafter set forth, BE IT AGREED:
1. All costs of transporting the Owner's Bison to Blue Sky lands shall be
borne by Blue Sky.
2. Upon delivery of the Bison, Blue Sky shall provide range, feed, care and
management for them in accordance with the customary and proper practices of
bison management. Specifically, Blue Sky shall provide the following:
a) Lands necessary for grazing (including proper pasture maintenance
and rotation practices)
b) All necessary winter feed, hay, straw, grains, minerals and water
c) All veterinary care including vaccinations for diseases and blood
parasites, and worming
d) Handling facilities and handling labor
e) Identification tagging of the Bison and records management
f) Herd bulls for the purpose of breeding the Bison at a rate of no
less than one ( 1 ) bull per twenty ( 20 ) bison cows.
3. Insurance for death loss, acts of parliament or other perils of the Bison
is the responsibility of the Owner.
4. Blue Sky agrees that it will carry liability insurance in the amount of
$2 million to protect the Owner from liability that may arise by reason of
acts of the public generally, third persons and trespassers; Blue Sky shall
bear the cost of this liability insurance.
5. Blue Sky will assist in marketing, selling and transporting the Owner's
Bison breeding stock at the Owner's request and at the Owners expense.
6. Blue Sky will market and sell the Owner's yearly calf crop and will bear
the costs associated therewith.
7. Blue Sky will provide reasonable access to the lands of Blue Sky for the
Owner or a person authorized by the Owner for the purpose of inspecting the
Bison.
8. The remuneration payable by the Owner to Blue Sky for the services
provided pursuant to This Agreement shall be as follows:
a) The Owner will pay on a monthly basis $500.00 (CAD) for the services
described in this agreement. The owner will pay 1/4 of the proceeds of money
earned from the sale of the bulls and the heifers for 1999.
10. Blue Sky shall be entitled to a lien upon all the Owner's Bison for any
sum which may be due and owing by the Owner to Blue Sky pursuant to This
Agreement. This lien may be enforced by the sale of any of the Owner's Bison.
Specifically, any animal whose pasturage fee is three ( 3 ) months in arrears
may be sold after serving due notice to the Owner. The proceeds of said sale
will go first to pay incurred pasturage and sale costs with the remaining
moneys to be remitted to the Owner.
11. It is mutually agreed that for purposes of Owner revenue determination,
the Owner shall receive a prorata share of the revenue from the sale of the
entire calf crop of the immediate herd in which the Owner's Bison cows reside
based on the number of the Owner's Bison cows in relation to the total number
of bison cows in the immediate herd.
i.e. the calving rate of the Owner's Bison cows shall be the collective
calving rate of the entire, immediate bison cow herd in which the Owner's
Bison cows reside, and the male to female ratio of the Owner's calf crop shall
be the male to female ratio of the entire, immediate herd's calf crop in which
the Owner's Bison cows reside.
12. It is specifically understood and agreed that Blue Sky shall have at all
times the exclusive preference option and right to purchase or refuse to
purchase, as the case may be any and all animals offered for sale by the Owner
at fair market value.
13. The term of this agreement will be for the period of 12 months
beginning on the 1st day of January , 1999, and ending on the 1st day of
January, 2000. The agreement may be extended on a monthly basis beyond the
first 12 months on a monthly basis as agreed upon between the owner and Blue
Sky.
14. In the event of premature termination of this contract, the Owner will
be liable for boarding fees over the remaining term of the contract at a rate
of $1,200 per bison per year. All fees payable by the Owner to Blue Sky
shall become due and payable at the time of contract termination.
15. This Agreement constitutes the entire agreement between the parties and
shall be amended only by agreement of the parties in writing.
16. This Agreement shall ensure to the benefit of and be binding upon the
parties hereto and their respective heirs, executors, administrators,
successors and assigns.
IN WITNESS HEREOF, the parties have executed This Agreement as of the day and
year first noted above
BLUE SKY BISON RANCH LTD. R & R Ranching, Inc.
Per /s/ W.M.C. Davidson Per /s/ Xxxxxxx X. Xxxxxxxx, President
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WITNESS WITNESS
/s/ Xxxxx Xxxx /s/ Xxxxx Xxxx
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