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 Xxxxx 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 four
(4) tracts situated in Houston County, Texas, to-wit:
(1) That certain two hundred twenty-nine (229) acres,
more or less, tract or parcel of land known as the PRAIRIE FIELD
tract;
(2) That certain two hundred twenty (220) acres, more
or less, tract or parcel of land known as the LOWER BOTTOM NORTH
tract (200 acres of which is irrigated land);
(3) That certain two hundred sixty-four (264) acres,
more or less, tract or parcel of land known as the LOWER BOTTOM
SOUTH tract, (200 acres of which is irrigated land); and
(4) That certain one hundred eighty-three (183) acres,
more or less, tract or parcel of land known as the EAST RICE
FIELD tract, (160 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: Xxxxx Xxxxxx
XX 0, XXX 000-X
Xxxxxxxx, XX 00000
(000)000-0000
(17) OPERATOR agrees to pay to OWNER its proportionate 11%
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 the
Lower Bottom Field covering approximately 400 acres, and a
movable pivot sprinkler system on the East Rice Field covering
approximately 160 acres in two sets. OPERATOR shall have the
right to use the irrigation systems on the following basis:
(a) OPERATOR, at its sole cost and expense,
shall maintain and operate the Lower Bottom Field
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 Lower Bottom Field water well.
(c) OPERATOR shall have free use of water from
OWNER'S Lower Bottom Field well.
(d) OPERATOR shall purchase fuel gas for the
Lower Bottom Field pump from OWNER?S affiliate at
agricultural rates.
(e) OPERATOR, at its sole cost and expense,
shall maintain and operate the East Rice Field 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.
(f) OWNER shall provide water to the East Rice
Field pivot system from its underground pecan
irrigation system at a sufficient pressure to operate
the pivot. OWNER will make a fair allocation of
capacity between the East Rice Field pivot system and
the other irrigation requirements of the system from
the water and pressure available.
(g) OPERATOR will pay to OWNER a pumping charge
equal to his pro-rata share of the pumping cost, based
on gallonage, for the East Rice Field pivot system.
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 XXXXX 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 HOUSTON )
Before me, the undersigned authority, on this day
personally appeared Xxxxx 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
Prarie Field 229 0 229
Lower Bottom North 220 200 20
Lower Bottom South 264 200 64
Rice Field 183 160 23
Total 896 560 336
otal Rental $45,360 $33,600 $11,760
Page 8
