Alberta Cash Farm Lease Agreement by Megadox


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									                           CASH FARM LEASE AGREEMENT

THIS LEASE is entered into as of the _____ day of ______________, _______ by and between:

        LANDLORD:                [name of Landlord] (the “Landlord”)
                                 [full address of Landlord]
                                 [phone number]

        TENANT:                  [name of Tenant] (the “Tenant”)
                                 [full address of Tenant]
                                 [phone number]

In consideration of the mutual covenants and agreements contained in this Lease, Landlord and Tenant
hereby agree as follows:

                                 ARTICLE I – GRANT OF LEASE
1.1     Grant of Lease and Description of Lands

Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, the lands located at
___________________, Province of Alberta, consisting of approximately ____________ acres, and legally
described as:

        [give the legal description of the land]

(hereinafter called the “Lands”), to occupy and use for agricultural purposes only.

1.2     Condition of Lands

The occupancy of the Lands by Tenant shall be conclusive evidence as against Tenant that at the time
Tenant took possession of the Lands, they were in good and satisfactory condition for use by Tenant.

                              ARTICLE II – TERM AND RENEWAL
2.1     Initial Term

The initial term of this Lease shall commence on __________ [insert date] for a term of ______ year(s)
(“Term”), and shall expire on __________ [insert date].

2.2     Renewal

At the end of the initial term of this Lease, the Term shall be automatically extended for a further year and
from year to year thereafter, provided Tenant is not then in default, unless at least ______ month(s) before
the end of the then current Term, either party serves the other party with written notice of its intention to
terminate the Lease at the end of such current Term.

                                         ARTICLE III - RENT
3.1     Annual Cash Rent

The annual cash rent shall be $________ per acre x ________ acres of tillable land, for a total annual rent of
$___________, not including GST, which will be added as applicable.

3.2     Time and Place for Payment

Rent shall be paid as follows:

                 Installment Payment ($)                     To be paid by (date)

Tenant agrees to pay interest on any installment payment of rent which is not paid by the due date, at the
rate of _______ percent (___%) per annum, from the due date until paid.

4.1     Use of Lands

Tenant shall use the Lands for farming and agricultural production only, and shall not permit or allow
any other person to use all or any part of the Lands for any purpose or activity not directly related to such
farming and agricultural production. Tenant shall farm the Lands in a good and husbandman-like
manner, in accordance with normal farming practices.

4.2     Compliance With Laws

Tenant shall conduct its farming operations on the Lands in accordance with all applicable local,
provincial and federal laws and regulations governing agricultural and environmental matters, including
but not limited to health and safety, fire prevention, and the application of fertilizers, pesticides and
herbicides, which shall be applied only by licensed applicators of such substances or, alternatively, Tenant
shall take all necessary steps to obtain the appropriate licenses to make such applications.

4.3     Control of Weeds and Soil Erosion

(a)     Tenant agrees to prevent noxious weeds from going to seed on the Lands and to destroy the same
        and keep the weeds and grass cut.

(b)     Tenant shall control soil erosion as completely as reasonably possible through the maintenance of
        existing water courses, grassed waterways, ditches, drainage areas, terraces and tile drains, and
        Tenant shall abstain from any practice which may cause damage or injury to any such structures.

4.4     Maintenance, Repairs, Alterations

Tenant agrees to maintain fences and other improvements in as good condition and repair as they are in
at the beginning of the Lease term, or in as good condition and repair as they may be put by Landlord
during the term, except for ordinary wear and tear, loss by fire or unavoidable destruction. Tenant agrees
not to remove, alter, move, or make improvements or changes to any building or fence on the Lands
without the prior written consent of Landlord.

4.5     Cutting of Trees

Tenant shall not cut or allow any other party to cut live or dead trees for the purpose of sale or for
personal use.

5.1     Insurance

Tenant shall obtain and maintain at all times during the Term of this Lease adequate policies of insurance
insuring Tenant and Tenant’s employees while performing farming operations on the Lands. Such
insurance policies shall be in form and amounts satisfactory to Landlord and shall Landlord as an
additional insured party and shall require the insurer to give notice of termination of coverage to
Landlord. Tenant shall furnish evidence of such insurance upon request by Landlord.

5.2     Taxes

Landlord will pay all real property taxes, rates and assessments that may be levied against the Lands
during the Term of this Lease. Payment of Tenant’s income taxes and other taxes payable by Tenant shall
be the sole responsibility of Tenant.

5.3     Fuel, Utilities, Labour Costs

Unless otherwise stated in this Lease, Tenant shall be responsible for all costs of farming the Lands,
including but not limited to fuel, electricity, power, telephone and other utilities, and all labour costs
associated with the farming operations.

                      ARTICLE VI – LANDLORD’S RIGHT OF ENTRY
Tenant covenants to permit Landlord or its agent, either alone or with workmen or others, to enter upon
the Lands from time to time and at all reasonable times during the Term upon _____ days prior notice to
Tenant for the purposes of:

(a)     viewing the Lands;
(b)     making repairs, improvements, and inspection;
(c)     surveying, soil testing, developing mineral resources; or
(d)     after constructive notice has been given that this Lease may not be extended, and following
        severance of crops, for the purpose of plowing and preparing seed bed, making seedings,
        applying fertilizers, and any other operation necessary to good farming by the succeeding

such operations not to interfere with Tenant in carrying out the regular farming operations.

                          ARTICLE VII – MAJOR IMPROVEMENTS
Tenant agrees not to make major improvements to the Lands without the prior written consent of
Landlord. The amount of compensation payable to Tenant by Landlord for a major improvement shall be
agreed upon by the parties, and if they cannot agree, the dispute shall be resolved by arbitration in
accordance with Article ____ (Arbitration). Title to all such improvements shall vest in Landlord upon
completion and no improvement shall be sold, bartered, mortgaged, charged, encumbered, disposed of or
removed from the Lands without Landlord’s written permission. For the purposes of this Article, and
without limiting the generality of the foregoing, “major improvement” shall include water development,
erosion control, fencing, buildings, clearing, breaking and seeding of land to pasture and hay land.

8.1     Quiet Possession

So long as Tenant pays the annual rent hereby reserved and performs the covenants and obligations on
the part of Tenant to be observed and performed pursuant to the provisions hereof, Tenant shall have
quiet possession of the Lands for the term hereby granted without any interruption or disturbance from
Landlord or any other person lawfully claiming by, from or under Landlord.

8.2     Right-of-Way

Wherever necessary, Landlord shall give Tenant a right-of-way over any lands owned by Landlord which
adjoin the Lands for the purpose of allowing Tenant to plant, tend, maintain or harvest the crops on the
Lands. Such right-of-way shall cease upon the termination of this Lease.

                                  ARTICLE IX - TERMINATION
9.1     Termination by Mutual Agreement

The parties may mutual agree to terminate this Lease at any time.

9.2     Termination for Breach

If either party fails to substantially perform its obligations under this Lease, the other party may terminate
the Lease by serving written notice of termination specifying the reason(s) for termination and a
termination date not earlier than ___________ days following the date of such notice.

9.3     Surrender of Lands at Termination

(a)     Tenant shall, at the expiration of the term or other sooner termination of this Lease, peaceably and
        quietly leave, surrender and yield up vacant possession of the Lands to Landlord.

(b)     Tenant shall leave the Lands in good repair, and in the same condition at the termination of the
        Lease as at the beginning of the Lease term, excepting only reasonable wear and tear and damage
        by fire, lightning and tempest.

(c)     Tenant agrees to pay Landlord reasonable compensation for any damage to the Lands and
        premises for which Tenant is responsible.

9.4     Tenant’s Compensation on Termination

Upon termination of this Lease,
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