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AZREB.com | Real Estate Forms
FARM
LEASE
BY THIS LEASE, made and entered into to be effective this _____ day of
_____________, ____, by and between ("Landlord")
and ("Tenant"),
the parties hereto covenant and agree as follows:
1.
Land. For and in
consideration of the agreement of Tenant to pay the rent and other sums provided
for herein and to perform the terms, covenants and conditions on its part
required hereunder, Landlord hereby leases to Tenant and Tenant hereby leases
from Landlord approximately farmable acres of real property located in
,
Maricopa County, Arizona, more specifically described on Exhibit
"A" attached hereto and incorporated herein (the
"Land").
2.
Term. The term of
this Lease is (___) months commencing ,
__ and
expiring on ,
__ .
3.
Rent. Tenant shall
pay to Landlord, in lawful money of the United States, at such place as is
hereinafter designated for the giving of notice to Landlord as rental for the
Land the sum of DOLLARS
($ )
($ per
acre per year), in equal installments of $
payable on or before , __ and
,
__ , respectively.
4.
Use of the Land. The
Land shall be used for the purpose of planting, growing, and harvesting solely
those crops which are specified on Exhibit "B" attached hereto
and incorporated herein. The Land
shall not be used for any other purpose without the prior written consent of the
Landlord. Landlord makes no
warranty or representation as to the suitability of the land or any portion
thereof for the growing of the crops specifically referred to and permitted
herein.
5.
Operations on the Land. All
operations conducted on the Land by the Tenant incidental to any of the uses
specified on Exhibit "B" attached to this Lease shall be
conducted by Tenant in accordance with the best course of husbandry practiced in
the geographical vicinity of the Land. Should
Tenant fail to take any action or fail to conduct any operation undertaken by it
on the Land in accordance with the best course of husbandry practiced in the
geographical vicinity of the Land, Landlord may, after serving a ten (10) days'
written notice of such failure on Tenant, in the manner provided for service of
notices in this Lease, enter onto the Land and take such action as Landlord may
deem necessary to protect its interest in this Lease and in the Land.
Tenant agrees to reimburse Landlord on demand for the cost of any actions
taken by Landlord pursuant to the provisions of this paragraph.
6.
Payment of Utilities and Taxes.
Tenant shall be responsible to pay all water delivery (including pump
taxes, if any), stored water, headgate, utility or other charges in connection
with the use of the Land for farming purposes.
Tenant shall also be responsible for taxes or regular assessments
imposed on the Land by any irrigation district having jurisdiction over
the Land, as well as all other taxes, assessments and special assessments levied
against the Land which result directly or indirectly from Tenant's use of the
Land for farming or irrigation purposes. The
cost of any water used on the Land shall be the sole responsibility of Tenant. In addition to Tenant's other obligations hereunder, Tenant
shall promptly forward to Landlord any notice of assessment or charge which
Tenant receives in connection with the Land.
7.
Waste or Nuisance. Tenant
agrees that it will not commit, cause or permit any waste or strip of the Land
and that Tenant will keep the Land, including all ditches, laterals and drains
located thereon, free of noxious plants and weeds, and otherwise in good
condition and repair. Tenant agrees
that upon the expiration of the term of this Lease, or upon any other
termination of this Lease, that Tenant will surrender possession of the Land to
Landlord in as safe and good condition and repair as the land was in when
received by Tenant or in such improved condition as the Land may be put during
the term of this Lease, reasonable wear and tear in accordance with normal
farming practices excepted. Without
limiting the foregoing, prior to termination or expiration of this Lease, Tenant
shall disk and cross-disk the Land such that the Land at the termination of this
Lease by expiration or otherwise shall satisfy all governmental or
quasi-governmental requirements or regulations therefor.
Failure to lease the soil in such condition shall constitute a default
under paragraph 16 hereof. In
addition, Tenant agrees to abide by all rules and regulations established by the
Department of Water Resources in regard to irrigation waters as more
specifically set forth in paragraph 8.
8.
Groundwater Usage. Notwithstanding
anything to the contrary contained in this Lease, Landlord and Tenant
acknowledge and agree that the following provisions shall govern the use of
water by Tenant on the Land:
a.
Tenant agrees to comply with all rules, regulations and statutes which
regulate or affect the use of groundwater in the Phoenix Active Management Area
(the "Groundwater Provisions"). Such
Groundwater Provisions include, but are not limited to, the Management Plan for
the Phoenix Active Management Area. As
used herein, the term "groundwater" has the same meaning as adopted by
the Arizona Department of Water Resources ("DWR") and it includes any
surface waters commingled with said groundwaters so as to make it impossible to
identify the source of said groundwater.
b.
If the Groundwater Provisions mandate conservation measures, acquisition
of additional equipment required to conserve water, or changes in operation,
Tenant shall be solely responsible for meeting any and all costs, charges,
penalties or expenses associated with said measures, acquisition or changes in
operation.
c.
Tenant shall furnish any information about groundwater used on the Land
as may be requested by DWR within fifteen (15) days after Tenant receives a
request for such information. In
the event Tenant directly provides such information to DWR, Tenant shall also
furnish a copy of such information to Landlord.
In the event that the request is directed to the Landlord, Tenant agrees
to provide such information to Landlord within fifteen (15) days after Tenant is
notified by Landlord that DWR desires such information.
In any event, Tenant shall provide to landlord a written record of the
annual groundwater use on the Land during the Lease Term by no later than
January 31st of the following year. In
addition, Tenant shall promptly forward to Landlord copies of any "Monthly
Water Run Reports" as may be received on a monthly basis from the Salt
River Valley Water User's Association.
d.
In the event that Landlord must pay DWR an assessment, pump tax, or
withdrawal fee based upon the amount of water withdrawn and used on the Land by
Tenant, Tenant shall pay to landlord the amount of the assessment, tax, or fee
within ten (10) days following written notice to Tenant from Landlord that such
an assessment fee or tax is, or will be, due.
e.
In the event that an annual allotment is imposed on any right to use
groundwater on the Land, Tenant agrees not to exceed such annual groundwater
allotments. If Tenant does so
exceed such annual allotments, such event will constitute a default under the
terms and conditions of this Lease. In
any event, Tenant hereby agrees to pay as liquidated damages to Landlord the sum
of ____________________ Dollars ($_______) for each and every acre-foot of
groundwater used on the Land in excess of the annual allotment for the Land,
said amount of liquidated damages being a fair and reasonable approximation of
the market value of each acre-foot of groundwater.
9.
Insurance. Tenant
shall maintain, at its expense, insurance on the Land against claims for
personal injury or property damage under a policy of general public liability
insurance in such amounts as Landlord may direct.
Tenant shall furnish Landlord with a certificate of insurance that
designates Landlord as an additional insured evidencing that such insurance has
been obtained. Further, Tenant
shall maintain, at its expense, insurance coverage of the crops and personal
property of Tenant located upon the Land and hereby waives the right to assert
any claim of liability against Landlord for any loss or damage resulting to said
personal property and crops by fire or other casualty.
Further, Tenant shall carry State Workmen's Compensation insurance on all
employees to the extent required by Arizona law.
10.
Inspection by Landlord. Tenant
shall permit Landlord or Landlord's agents, representatives, or employees to
enter the Land at all reasonable times for the purpose of inspecting the Land to
determine whether Tenant is complying with the terms of this Lease and for the
purpose of doing other lawful acts that may be necessary to protect Landlord's
interest in the Land.
11.
Alterations and Liens. Tenant
shall not make or permit any other person to make any alterations to the Land or
to any facility appurtenant thereto, if any, without the prior written consent
of Landlord. Tenant shall keep the
Land free and clear from any and all liens, claims, and demands for work
performed, materials furnished, or operations conducted thereon at the instance
or request of Tenant, and from all liens and encumbrances which may be placed on
the Land by virtue of the use thereof by Tenant or by virtue of Tenant's failure
to pay any charges for water used on the Land.
In the event Landlord is required or desires to remove any lien or
encumbrance that may be placed upon the Land as a result of any of the
foregoing, Tenant agrees to pay, in addition to the amount claimed under or
secured by such lien or encumbrance, any and all sums expended by Landlord in
removing said lien or encumbrance, including Landlord's reasonable attorneys'
fees.
12.
Indemnification. Landlord
shall not be liable for any debts or liabilities contracted or incurred by
Tenant. Further, Tenant agrees to indemnify and hold Landlord
harmless from any and all claims, liability, loss, damage, or expense resulting
from Tenant's occupation and use of the Land, specifically including, without
limitation, any claim, liability, loss, damage, civil or criminal penalty
incurred by Landlord arising:
a.
By reason of injury to person or property, from whatever cause, while in
or on the Land or in any way connected with the Land or personal property on the
Land including any liability for injury to the person or personal property of
Tenant, its agents, officers or employees;
b.
By reason of any work performed on the Land or materials furnished to the
Land at the instance or request of Tenant, its agents or employees;
c.
By reason of Tenant's failure to perform any provision of this Lease or
to comply with any requirement imposed on Tenant or on the Land by any duly
authorized governmental agency or political subdivision;
d.
By reason of Tenant's failure or inability to pay as they become due any
obligations incurred by Tenant in the agricultural or other operations to be
conducted by Tenant on the Land; and/or
e.
By reason of Tenant's failure to comply with the provisions of paragraph
8 hereof.
13.
Subleasing and Assigning. Tenant
shall not encumber, assign, or otherwise transfer this Lease, any right to
interest in this Lease, or any right or interest in the land or any improvements
that may hereafter be constructed or installed on the Land, without the express
prior written consent of Landlord, neither shall Tenant sublet the Land or any
part thereof or allow any other persons, other than Landlord's agents, to use
the Land or any part thereof without the prior written consent of Landlord.
In connection with this paragraph, Tenant shall send any written request
for approval of its proposed subletting or assignment to Landlord at the address
set forth herein and to
at
. In the event Landlord
fails to respond to Tenant's request within thirty (30) days after such notice
is given in accordance herewith, such acceptance shall be deemed to have been
given. The consent by Landlord to
one assignment, subletting, or use by another person or entity shall not be
deemed to be a consent to any subsequent assignment, subletting or use by any
other person or entity. Any
encumbrance, assignment, transfer or subletting without the prior written
consent of Landlord, whether it be voluntary or involuntary, by operation of law
or otherwise, is void and shall, at the option of Landlord, terminate this
Lease. The consent of Landlord to
any such assignment of Tenant's interest in this Lease or the subletting by
Tenant of the Land, shall not be unreasonably withheld.
Further, such consent shall in no way affect the liability of Tenant
hereunder.
14.
Subordination and Attornment.
a.
This Lease shall automatically be subordinated to the lien of any
mortgage or deed of trust heretofore or hereafter placed upon the Land, to any
and all advances made or to be made thereunder, to the interest on the
obligations secured thereby, and to all renewals, replacements and extensions
thereof; provided, however, that in the event of foreclosure or the
exercise of the power of sale under any such mortgage or deed of trust, Tenant
shall attorn to the purchaser of the Land at such foreclosure or sale and
recognize such purchaser as Landlord under this Lease.
b.
Tenant covenants and agrees to exercise and deliver upon demand, without
charge therefor, such further instruments evidencing such subordination of this
Lease to the lien of any such mortgages or deeds of trust as may be required by
Landlord, or any encumbrancer or purchaser of the Land.
Tenant hereby appoints Landlord as Tenant's attorney-in-fact,
irrevocably, to execute and deliver any such agreements, instruments, releases
or other documents.
15.
Condemnation. If all
or substantially all of the Land shall be taken for public or quasi-public use
by right of eminent domain, or transferred by agreement in lieu of condemnation
for such public or quasi-public use, then Tenant may give Landlord notice of its
intention to terminate this Lease on any date after such taking, but not more
than 120 days thereafter, whereupon this Lease shall be terminated, provided
that Tenant shall be entitled to share in any condemnation award to the extent
of the value of its leasehold interest in the Land.
If said taking does not render the remaining portion of the Property
unsuitable for Tenant's reasonable use thereof, then this Lease shall continue
provided that the rental provided hereunder shall abate pro rata to the portion
of the Land so taken or transferred.
16.
Default. If Tenant
should fail to pay any sum required by this Lease to be paid to Landlord within
five (5) days of its due date, or if Tenant should fail to perform any other
obligation to be performed by Tenant hereunder and such failure should continue
for a period of thirty (30) days following written notice thereof from Landlord
to Tenant, or should Tenant's interest herein be terminated or assigned by
operation of law or otherwise, including, without limitation, the filing of a
petition by or against Tenant, or any member of Tenant if Tenant is a
partnership or joint venture, under any insolvency or bankruptcy code or act, or
should Tenant make a general or any assignment for the benefit of creditors, or
a receiver shall be appointed to take charge of Tenant's assets, or if Tenant
should vacate or abandon the Land, then Landlord may treat the occurrence of any
one of the foregoing events as a default of this Lease, and in addition to any
other rights or remedies it may have hereunder or at law or in equity, Landlord
shall have the right without any further demand or notice, to pursue one or more
of the following remedies:
a.
terminate this Lease by written notice to Tenant.
In the event of such termination, Tenant agrees to immediately surrender
possession of the Land. Should
Landlord terminate this Lease, Tenant shall have no further interest in this
Lease or in the Land, and Landlord may recover from Tenant all damages Landlord
may incur by reason of Tenant's default, including, without limitation, the cost
of recovering the Land, and reasonable attorneys' fees;
b.
sue for any sums due Landlord under this Lease; and/or
c.
render such performance required of Tenant, and charge all costs and
expenses incurred in connection therewith to Tenant, and all amounts so charged
shall be due and payable immediately to Landlord upon presentment of a statement
to Tenant indicating the amount and nature of such costs or expense.
17.
Interest. Any monies
due from Tenant to Landlord hereunder which are not paid when due shall bear
interest from the due date until paid, at the rate of eighteen percent (18%) per
annum, but the payment of such interest shall not excuse or cure any default by
Tenant under this Lease. The
acceptance or endorsement by Landlord of any payment or check from Tenant shall
not be deemed an accord and satisfaction and shall not prejudice Landlord's
right to recover the balance of any amounts due under the terms of this Lease,
unless otherwise expressly agreed by Landlord in writing.
18.
Surrender of Land and Holding Over.
Upon the expiration or other termination of this Lease, Tenant hereby
covenants and agrees to surrender and deliver up the Land peaceably to Landlord
immediately upon such expiration or other termination.
If the Land is not surrendered upon such expiration or other termination,
Tenant shall indemnify Landlord against any loss or liability resulting from
delay by Tenant in so surrendering the Land, including, without limitation, any
claims made by any succeeding tenant based on such delay.
Further, if Tenant should remain in possession of the Land after
termination without executing a new lease, such holding over may, at the
election of Landlord, be deemed a tenancy from month-to-month, subject to all of
the provisions of this Lease, except that the rent shall be automatically
increased to
AND NO/100THS DOLLARS ($_______________) per year of
AND NO/100THS DOLLARS ($_____________) per acre per year, with such
year, for purposes of this calculation, to be deemed to commence as of the
applicable expiration or termination date.
The rent payable by Tenant hereunder as automatically increased herein
shall thereupon be payable by Tenant to Landlord in equal monthly installments
of $2,035.00 in advance on the first day of each calendar month.
19.
Crops. Tenant agrees
to remove any and all crops from the Land prior to the expiration or other
termination of this Lease. In the
event any crops are not so removed from the Land by Tenant prior to the
expiration or other termination of this Lease, such remaining crops shall become
the sole property of Landlord, including all proceeds from the sale of such
crops.
20.
Landlord's Option to Terminate.
Landlord shall be entitled to terminate this Lease as to all or any
portion of the Land at any time prior to expiration of the term hereof provided
that Landlord gives Tenant at least thirty (30) days' prior written notice
thereof and Tenant shall vacate the Land or any portion thereof within said
thirty (30) days; provided, however, that Landlord may not terminate this Lease
as to only a portion of the Land, if the remainder of the Land would be
unsuitable for farming purposes. If
Landlord terminates this Lease as provided
herein as to a portion of the Land only, the rent shall abate pro rata
based upon the acreage or fraction thereof over which the Landlord exercises its
right to terminate. If Tenant
receives the notice at a time when a crop has been planted, Tenant shall use all
due diligence to harvest the crop and to the extent Tenant is unable to harvest
the crop, Landlord shall compensate Tenant for Tenant's reasonable costs
incurred in planting, tillage and hedging the Land or any portion thereof over
which Landlord exercises the right provided herein to terminate this Lease.
Such costs shall not include and (Tenant shall not be entitled to
reimburse for) projected or anticipated profits on the sale of such crops had
the same been in harvestable condition at the date of any termination of this
Lease by the Landlord.
21.
Miscellaneous.
a.
This Lease represents the entire agreement and understanding of the
parties and supersedes all prior agreements and negotiations between the
parties, whether oral or written. This
Lease may not be altered or amended except by written instrument executed by the
parties hereto. If any term or
provision of this Lease shall be determined invalid or unenforceable, such
invalid term or provision shall not affect or impede the remainder of this
Lease, but such remainder shall continue in full force and effect as though such
invalid term or provision were not contained herein.
b.
In the event either party finds it necessary to employ legal counsel or
to bring an action at law or other proceedings against the other party to
enforce any of the terms, covenants or conditions hereof, the prevailing party
in any such action or other proceeding shall be paid all reasonable attorneys'
fees by the other party and, in the event a judgment is secured by such
prevailing party, all such attorneys' fees shall be determined by the court and
not a jury and shall be included in any such judgment.
c.
Except as otherwise provided herein, any notice to or demand upon either
party hereto by the other, pursuant to this Lease, shall be in writing and shall
be delivered in person to the other party or forwarded by registered or
certified mail, return receipt requested, addressed as follows:
To Landlord at:
ATTENTION:
To Tenant at:
ATTENTION:
or
elsewhere, as either party hereto may from time to time designate by written
notice to the other and no such notice or demand shall be deemed to have been
duly served, given or made unless served, given or made in said manner.
Any such notice or demand shall be deemed given and received immediately
if delivered in person, or if delivered by mail, then upon the date set forth on
the return receipt or seventy-two (72) hours after deposit thereof with the
United States Postal Service, whichever date is earlier.
d.
The title and headings in this Lease are for convenience only and shall
not affect, limit or control the meaning or application of any provision hereof.
Whenever the context so requires,
the masculine gender includes the feminine and the neuter, and the singular
includes the plural. This Lease may
be executed in any number of counterparts, each of which shall be deemed an
original, but all of which together shall constitute the entire agreement
between the parties pertaining to the Land.
e.
Time is of the essence with respect to the obligations of the parties
under this Lease. The terms and
conditions hereof shall inure to the benefit of and be binding upon the heirs,
executors, personal representatives, successors and assigns of the parties
hereto.
f.
The relationship between the parties is that of Landlord and Tenant, and
no other.
g.
This Lease shall be governed by the laws of the State of Arizona.
h.
Landlord agrees that for the purpose of convenience, Tenant shall have
the right to combine the Land subject to this Lease with other land farmed by
him/her under any of the ASCS farm programs, provided that such action by Tenant
shall not be construed in any manner to create any new obligations or increase
any existing obligations of Landlord hereunder.
IN WITNESS WHEREOF, the parties hereto have executed this Lease to be
effective at the date set forth above.
Dated:
,
____
("LANDLORD")
Dated:
,
____
("TENANT")
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