AGRICULTURAL LEASE
STATE OF TEXAS )
COUNTY OF HOUSTON )
This LEASE, between Seven J Stock Farm, Inc., by Xxxx X.
Xxxxxx, President, hereinafter called OWNER, and Xxx Xxxxxx,
hereinafter designated OPERATOR, unless otherwise indicated.
W I T N E S S E T H :
That OWNER, for and in consideration of the agreements
hereinafter set forth, to be kept, performed and observed by
OPERATOR, has demised and leased to OPERATOR the following
three(3) tracts situated in Houston County, Texas, to-wit:
(1) That certain four hundred fifty-eight (458) acres,
more or less, tract or parcel of land, known as the NORTH
XXXXXXX FARM tract;
(2) That certain six hundred eighty-three (683) acres,
more or less, tract or parcel of land known as the SOUTH
XXXXXXX FARM tract;
(3) That certain two hundred ninety-three (293) acres,
more or less, tract or parcel of land known as the PIN OAK
FIELD tract; (122 acres of which is irrigated land).
TO HAVE AND TO HOLD the above described premises for
the sole purpose of cultivating and producing cotton, legumes and
grain crops thereon and therefrom with all the privileges and
appurtenances belonging to same, unto the OPERATOR for the crop
years 2003 through 2007, terminating on the date the 2007 crops
have been harvested.
(1) OPERATOR agrees to pay to OWNER as annual rental, the
sum of thirty-five dollars ($35) per acre for the non-irrigated
land leased herein. The calculation of the annual rental is
attached as Exhibit "A". The rental for each year shall be due
on May 1.
(2) OPERATOR agrees to pay to OWNER as annual rental, the
sum of sixty dollars ($60) per acre for the irrigated land leased
herein. The calculation of the annual rental is attached as
Exhibit "A". The rental for each year shall be due on May 1.
(3) OPERATOR agrees that cotton, legumes and grain, and no
other crop, shall be planted or cultivated upon the hereinabove-
described premises.
(4) [INTENTIONALLY LEFT BLANK]
(5) [INTENTIONALLY LEFT BLANK]
(6) [INTENTIONALLY LEFT BLANK]
(7) OPERATOR agrees, at his sole expense, to maintain and
repair all buildings, if any, fences, gates, water lines and
other improvements upon said premises, or which may at any time
during such term be erected thereon.
(8) OPERATOR furthermore agrees to maintain at his expense,
the existing drainage system on the demised premises and every
part thereof in as good repair and condition as the same are now
in ordinary wear excepted.
(9) OPERATOR agrees, and shall be obligated, to maintain a
neat appearance on and over the leased premises and agrees to
remove all containers and waste material necessarily resulting
from the agricultural operations immediately after the use
thereof.
(10) OPERATOR agrees to hold harmless and unconditionally
indemnify OWNER against and from all liability including but not
limited to costs, expenses, claims and damages which for any
reason may be asserted against OWNER at any time as a consequence
of the application of insect poison or herbicides by OPERATOR,
whether applied aerially or by conventional means or methods.
(11) OPERATOR shall have the right of ingress and egress
through and across OWNER'S property along routes to be designated
by OWNER and such right of ingress and egress shall be limited to
OPERATOR, unless otherwise mutually agreed between OWNER and
OPERATOR.
(12) OPERATOR shall not have the right to xxxx, fish or
otherwise use the leased premises except for the specific
agricultural use designated herein.
(13) OPERATOR shall not sublet or assign this lease or any
part thereof, or any rights granted thereunder unless the written
consent of the OWNER is first obtained thereto.
(14) OWNER and OPERATOR agree that this lease may be
continued on an annual basis for an additional two (2) year
period after the expiration of the primary term provided herein
unless terminated upon written notice by either party.
(15) OPERATOR agrees and is hereby obligated to deliver
peaceably to OWNER, whenever this lease shall terminate, the said
premises and every part thereof in as good repair and condition
as the same are now in, loss by fire, storm or ordinary wear
excepted.
(16) The addresses of the parties are as follows:
OWNER: Seven J Stock Farm, Inc.
Xx. 0, Xxx 000
Xxxxxxxx, XX 00000
Attention: Xxxx Xxxxxxx
(000)000-0000
OPERATOR: Xxx Xxxxxx
X.X. XXX 0000
Xxxxxx, XX 00000
(000)000-0000
(17) OPERATOR agrees to pay to OWNER its proportionate 17%
share of levee and drainage ditch maintenance and the cost of
maintaining and operating the two (2) pumping stations.
(18) OWNER has installed a pivot sprinkler system on a part
of the premises covering approximately 122 acres. OPERATOR shall
have the right to use the irrigation system on the following
basis:
(a) OPERATOR shall, at its sole cost and
expense, maintain and operate the well, pumping
system, and pivot system during the growing season.
The OPERATOR will leave the system at the end of the
lease term in as good or better condition as he received
it at the beginning of the lease term, normal wear and
tear excepted.
(b) OWNER shall be responsible for any down hole
repairs to the water well.
(c) OPERATOR shall have free use of water from
OWNER'S well.
(d) OPERATOR shall purchase fuel gas for the
pump from OWNER'S affiliate at agricultural rates.
(19) If OPERATOR fails to pay the rental for any year by
the May 1 due date, OWNER may serve notice of lease cancellation
on OPERATOR. If OPERATOR fails to make the lease payment within
30 days of the date of the notice, OWNER may, in addition to his
other remedies, declare this lease terminated and take immediate
possession of the property.
It is further agreed that the OPERATOR'S obligations
under the terms and provisions of this lease shall be and are
hereby secured by a lien upon all the property that OPERATOR may
now or hereafter have upon the premises.
WITNESS our hands in Duplicate Originals, this _____ day
of ______________, 2002.
OWNER: OPERATOR:
SEVEN J STOCK FARM, INC.
By__________________________ ______________________________
Xxxx X. Xxxxxx, President XXX XXXXXX
STATE OF TEXAS )
COUNTY OF XXXXXX )
Before me, the undersigned authority, on this day personally
appeared Xxxx X. Xxxxxx, known to me to be the person whose name
is subscribed to the foregoing instrument, as President of SEVEN
J STOCK FARM, INC., and acknowledged to me that he executed the
same for the purposes and consideration therein expressed and in
the capacity therein stated.
Given under my hand and seal of office this ____ day of
______________, 2002.
My Commission Expires: ____________________________
Notary Public in and for
________________________ The State of Texas
STATE OF TEXAS )
COUNTY OF )
Before me, the undersigned authority, on this day personally
appeared Xxx Xxxxxx, known to me to be the person whose name is
subscribed to the foregoing instrument, and acknowledged to me
that he executed the same for the purposes and consideration
therein expressed.
Given under my hand and seal of office this ____ day of
______________, 2002
My Commission Expires: ___________________________
Notary Public in and for
_______________________ The State of Texas
Exhibit 'A'
Field Acres Irrigated Acres Dry Acres
North Xxxxxxx Farm 458 0 000
Xxxxx Xxxxxxx Xxxx 683 0 683
Pin Oak Field 293 122 171
Total 1434 122 1312
Total Rental $53,240 $7,320 $45,920
