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3618 Schedule "A" - Agricultural Land Lease Agreement - B & B Graydon Enterprises LtdAgricultural Land Lease Agreement - B & B Graydon Enterprises Ltd. THIS AGREEMENT made in triplicate this ck? day of IV ^ , 2011. BETWEEN: THE CORPORATION OF THE TOWN OF TILLSONBURG hereinafter called the Lessor, of the First Part -and- B & B GRAYDON ENTERPRISES LTD. hereinafter called the Lessee, of the Second Part WHEREAS the Lessor is the sole administrator of all those parcels or tracts of land described as: (a) Excess lands located on the south side of Highway 3, known municipally as 2901 Highway 3, being Part Lot 2, Con 5 N.T.R. Middleton, Town of Tillsonburg, containing a grain dryer, five steel storage bins, and yard; AND WHEREAS the Lessee is desirous of renting said lands and premises for agricultural purposes for a term ("the lease period") commencing January 1, 2012 to expiration on December 31, 2013, subject to the conditions hereafter set forth in this Agreement. AND WHEREAS the Lessor is desirous of renting the said lands and premises as aforesaid to the Lessee for the term aforesaid, subject to the conditions hereinafter set forth. 1 NOW THEREFORE THIS INDENTURE WITNESSETH that the Lessee covenants with said Lessor that the Lessee shall pay rent as set out below, to the Lessor by two payments each year during the term of this agreement. The first payment of which will constitute 50% of annual rental fee and shall be due and payable on or before the start of cultivation and the remaining 50% of the annual rental fee not later than December 31st of each year that this indenture remains in force. (a) Excess lands located on the south side of Highway 3, known municipally as 2901 Highway 3, being Part Lot 2, Con 5 N.T.R. Middleton, Town of Tillsonburg, containing a grain dryer, five steel storage bins, and yard at a rental rate of $6,624 for 2012 and increased by the annual rate of inflation for 2013 (Consumer Price Index as per the Bank of Canada for the period from Dec 1, 2011 to November 31,2012). 2. IT IS further agreed that the Lessee shall be responsible for the below costs in addition to the lease costs: (a) The cost to maintain utilities for the grain dryer operation, including gas and hydro during the term of the lease; (b) The maintenance of the yard, grain dryer, and steel storage bins and related equipment. 3. PROVISO for re-entry by the Lessor on non-payment or non-performance of covenants. 4. IT IS further specifically agreed by and between the Parties hereto that the Lessor retains the right to sell or lease for purposes other than agriculture any lands except those on which the crop is being grown without notice or compensation to the Lessee. 5. IT IS further specifically agreed by and between the Parties hereto that the Lessor covenants with the Lessee for quiet enjoyment of the lands leased. Notwithstanding the foregoing, the Lessor shall be permitted to access the property for their purposes with the costs of any minor crop damage being born by the Lessee. Page 2 6. IT IS further specifically agreed by and between the Parties hereto that the Lessee will not assign or sublet without leave and not to carry on upon the said premises any business other than the use of the grain dryer and grain storage bins. 7. IT IS further specifically agreed by and between the Parties hereto that the Lessee shall provide to the Lessor proof of liability insurance in an amount not less than $2,000,000, to protect both the Lessor and the Lessee with the Town of Tillsonburg named as an additional insured, from any claims or demands whatsoever which might result from the aforementioned use of the lands. 8. IT IS further specifically agreed by and between the Parties hereto that the Lessee covenants to maintain all of the lands rented under this Agreement in good condition during the lease period. 9. IT IS further hereby agreed between the Parties hereto that if the term hereby granted, or any of the goods or chattels of the Lessee shall at any time during the said term be seized or taken in execution or in attachment by any creditor of the Lessee, or if the Lessee shall make any assignment for the benefit of creditors, or becoming bankrupt or insolvent debtors, the then current and next ensuing balance of rent shall immediately become due and payable and the said term shall, at the option of the Lessor, immediately become forfeited and determined and in such case, the Lessor may re-enter and take possession of the said lands as though the said lands was holding over after the expiration of the said term. 10. IT IS further hereby agreed between the Parties hereto that this lease agreement may be terminated, in whole or in part, by either party, in their sole and absolute discretion, upon thirty (30) days notice, in writing, delivered to the below addresses. In the case where the Lessee terminates the lease, he/she shall be responsible to pay a pro-rated payment to the date of termination for the lands leased. If to the Town of Tillsonburg: Cephas Panschow, Development Commissioner The Corporation of the Town of Tillsonburg 200 Broadway, Suite 204 Tillsonburg, ON N4G 5A7 Fax:519-842-9431 If to the B&B Graydon Enterprises Ltd: Brian Graydon, President B&B Graydon Enterprises Ltd 57547 Talbot Line RR3 Tillsonburg, ON N4G 4G8 F: (519)842-6557 11. IT IS further hereby agreed between the Parties hereto that this lease agreement may be extended in the sole and absolute discretion of the Lessor only at a cost per month equal to the annual rate divided by 12. The Lessee shall provide notice, in writing, of his/her desire to do so and the Lessor shall have 14 days to provide notice, in writing, of their determination. IT IS HEREBY declared and agreed that the expressions "Lessor" and "Lessee" wherever used in this indenture shall, when the context allows, include, be binding on and enure to the the benefit of not only the Parties hereto, but also their respective executors, administrators and assigns. Page3 IN WITNESS WHEREOF the parties hereto have hereunto set their hands and seals. SIGNED, SEALED AND ) DELIVERED in the Presence of THE CORPORATION OF THE TOWN OF TILLSONBURG DATE DONNA HEMERYCK, CLERK DATE THE LESSEE GRAY^ON DATEPRESIDENT I have the authority to bind the corporation