3607 Schedule _A_ - Agricultural Lease - Johan VerveerTHIS AGREEMENT made in duplicate this 11th day of April , 2012. BETWEEN: THE CORPORATION OF THE TOWN OF TILLSONBURG hereinafter called the Lessor, of the First Part, -and-JOHAN VERVEER hereinafter called the Lessee, of the Second Part WHEREAS the Lessor is the owner of the Tillson burg Regional Airport property, which is located between Airport Road and Prouse Road east of Highway 19, and legally described as Lots 5 & 6 and Part ofLots 2, 3, 4, and 7, Township of South-West Oxford, County of Oxford, Province of Ontario, and known municipally as 244411 Airport Road (the "Property"); AND WHEREAS the Lessor is desirous of renting the subject lands for agricultural purposes subject to the conditions hereinafter set forth in this Agreement. NOW THEREFORE THIS INDENTURE WITNESSETH 1. PAYMENT The Lessee covenants with the Lessor that the Lessee shall pay annual rent as set out below to the Lessor by two payments each year during the term of this agreement. The first payment of which shall constitute 50% of annual rental fee and shall be due and payable upon execution of the contract or no later than May 1 and the remaining 50% of the annual rental fee shall be due and payable on November 30 of each year that this indenture remains in force: (a) Approximately 337.8 Acres of arable land, shown as Parcels 1, 2, 3, 4, 5, 6, 7, 8, 9, 10 & 11 on the sketch in Appendix A, at a price of$305/acre for a total of $103,029 annually. 2. TERM The term of the lease shall be from May 1, 2012 to expiration upon harvesting of crops in the fall of 2012, and no later than December 31, 2012. The Lease Term can be extended for additional one (1) year terms by the Lessor in their sole and absolute discretion. 3. RE-ENTRY PROVISO for re-entry by the Lessor on non-payment or non-performance of covenants. 4. CROPS IT IS further agreed that the crop to be grown on the said lands shall be agreed upon prior to planting and shall generally be a com and soybean rotation. 5. RIGHT TO SELL SUBJECT LANDS IT IS further specifically agreed by and between the Parties hereto that the Lessor shall have the right to sell any part or parts of the subject lands and given immediate possession thereof, subject to the condition that if the Lessor sells and requires possession of any of the subject lands on which an agricultural crop is growing, the Lessee shall be compensated for any and all expenses incidental to growing such crop and the acreage leased pursuant to paragraph 1 hereof, shall be adjusted to take into account such share or lease throughout the balance of the term of the Lease. The Lessee must provide detailed accounting of the costs incurred for the lands in order to be reimbursed.
Page2 6. RIGHT TO SELL OTHER LANDS IT IS further specifically agreed by and between the Parties hereto that the Lessor retains the right to sell or lease any lands except those on which the crop is being grown without notice or compensation to the Lessee. 7. FARM BUSINESS REGISTRATION NUMBER The successful tenant will be required to provide proof of valid Farm Business Registration Number (OF A, CFFO or proof of exemption). 8. QUIET ENJOYMENT OF LANDS 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, including access to the forested lands, with the costs of any minor crop damage being born by the Lessee. 9. ASSIGNMENT IT IS further specifically agreed by and between the Parties hereto that the Lessee will not assign or sublet without approval by the Lessor, in their sole and absolute discretion, and not to carry on upon the subject lands any business other than that of crop production. 10. INSURANCE 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 ofTillsonburg named as an additional insured, from any claims or demands whatsoever which might result from the aforementioned use of the lands. 11. INDEMNIFICATION The Lessee shall indemnify and save harmless the Lessor from and against all claims, demands, loss, cost, damages, actions, suits or other proceedings by whomsoever made, brought or prosecuted by, or attributed to any such damages, injury or infringement as a result of activities under this Agreement. 12. MAINTENANCE 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. 13. IMPROVEMENTS TO PROPERTY The Lessee agrees that all improvements to the property for the purposes of increasing agriculture production are at their sole cost and subject to the approval of the Lessor, in their sole and absolute discretion. Notwithstanding this, the Town may consider entering into a second agreement for proposals that significantly expand the lands available for agricultural production. 14. BANKRUPTCY 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.
Page 3 15. TERMINATION FOR CONVENIENCE 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 by giving notice, in writing, sixty (60) days prior to the termination date or the expiration of the lease term. In the case where the Lessor terminates the lease, the provisions ofParagraph 5 above shall be in effect. 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. 16. TERMINATION OF THE CONTRACT FOR CAUSE In the event of any material default in this agreement by the Lessee that is within the reasonable control of the Lessee, the Lessor shall have the right to provide written notice of such default and demand that the deficiency of program be rectified within five (5) working days or such longer period as may be agreed upon by the Lessor. If the said default is not rectified or steps are not take to rectify the situation according to the agreed upon plan, the Lessor shall be entitled to issue a written notice of termination for cause with no less than thirty (30) days notice and all commissions outstanding shall be payable to the Lessor within thirty (30) days from termination. 17. NOTICE Notice to either party shall be given at the following addresses: If to the Lessor: Att: Airport Manager Corporation ofthe Town ofTillsonburg 244411 Airport Road South-West Oxford, ON N4G 4H1 Ifto the Lessee: Johan Verveer 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 benefit of not only the Parties hereto, but also their respective executors, administrators and assigns.
Page4 IN WITNESS WHEREOF the parties hereto have hereunto set their hands and seals. SIGNED, SEALED AND ) DELIVERED in the ) Presence of ) ) ) ) ) ) ) J:d~ JO~SfHF;IJA.v6R ~~ =--DONNA WILSON, CLERK THE LESSEE JOHAN VERVEER Af,J l L 1--D 12-DATE -f\pr'"'t l2/ ?ot2 I DATE DATE I have the authority to bind the corporation APPENDIX A-SUBJECT LANDS