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2021-01-12 Lambrecht Farm LeaseBLAIR AIRPORT AUTHORITY FARM LEASE — CASH THIS LEASE ("Lease') is made between City of Blair Airport Authority, (`Landlord"), whose address for the purpose of this Lease is City of Blair, 218 South 16th Street, Blair, NE 68008, and Lambrecht Farms, ("Tenant"), whose address for the purpose of this Lease is 1145 Co. Rd 40 Bennington, Nebraska, 68007. THE PARTIES AGREE AS FOLLOWS: 1. PREMISES AND TERM. Landlord leases to Tenant the following real estate situated in Washington County, Nebraska (the "Real Estate"): See map attached hereto as Exhibit A and fully incorporated herein by reference. USDA Farm Service Agency farm number 5377 tract numbers 3947, 4208, 4229, and farm 779 tract 185. and Containing 132 acres, more or less, of tillable farm ground and 32 acres, more or less, of grass hay with possession by Tenant for a term of four (4) years to Commence on March 1, 2021, and end on February 28, 2025. The Tenant has had or has been offered an opportunity to make an independent investigation as to the acres and boundaries of the premises. 2. RENT. Tenant shall pay to Landlord as rent for the Real Estate (the "Rent"): a. Total annual cash rent of $36,255.00 payable, unless otherwise agreed, as follows: $36,255.00 on March 1, 2021 (135 acres at $253 per acre plus $2100 for grass) $36,255.00 on March 1, 2022 $36,255.00 on March 1, 2023 $36,255.00 on March 1, 2024 All Rent is to be paid to Landlord at the address indicated above. Rent must be in Landlord's possession on or before the due date. Participation of this farm in any offered program by the U.S. Department of Agriculture (U.S.D.A) or any State or Local program for crop production control or soil conservation, the observance of the terms and conditions of this program, require Landlord's consent. Any U.S.D.A. farm program payments shall be payable to tenant. 3. LANDLORD'S LIEN AND SECURITY INTEREST. As security for all sums due or which will become due from Tenant to Landlord, Tenant hereby grants to Landlord, in addition to any statutory liens, a security interest as provided by the Nebraska law. 4. INPUT COSTS AND EXPENSES. Tenant shall prepare the Real Estate and plant such crops in a timely fashion as may be directed by Landlord. Tenant shall only be entitled to pasture or till those portions of the Real Estate designated by Landlord. All necessary machinery and equipment, as well as labor, necessary to carry out the terms of this lease shall be furnished by and at the expense of the Tenant. 5. PROPER HUSBANDRY; HARVESTING OF CROPS; CARE OF SOIL, TREES, SHRUBS AND GRASS. Tenant shall farm the Real Estate in a manner consistent with good husbandry, seek to obtain the best crop production that the soil and crop season will permit, properly care for all growing crops in a manner consistent with good husbandry, and harvest all crops on a timely basis. As per the bid specifications, all faiming operations shall be completely NO -TILL. In the event Tenant fails to do so, Landlord reserves the right, personally or by designated agents, to enter upon the Real Estate and properly care for and harvest all growing crops, charging the cost of the care and harvest to the Tenant, as part of the Rent. Tenant shall timely control all weeds, including noxious weeds, weeds in the fence rows, along driveways and in the general area adjacent to cropped areas. Tenant shall comply with all terms of the conservation plan and any other required environmental plans for the leased premises. Tenant shall do what is reasonably necessary to control soil erosion including, but not limited to, the maintenance of existing watercourses, waterways, ditches, drainage areas, terraces and tile drains, and abstain from any practice which will cause damage to the Real Estate. Tenant agrees to perform all farming operations so as to not encroach into any grassed areas not approved by the Authority for erosion control and to make sure all fences and gates are maintained in a closed position for Airport security. Failure to perform will be a cause for early termination of the lease. Upon request from the Landlord, Tenant shall by August 15th of each lease year provide to the Landlord a written listing showing all crops planted, including the acres of each crop planted, fertilizers, herbicides and insecticides applied showing the place of application, the name and address of the applicator, the type of application and the quantity of such items applied on the lease premises during such year. Tenant shall not remove from the Real Estate, nor burn, any straw, stalks, stubble, or similar plant materials, all of which are recognized as the property of Landlord. Tenant may use these materials, however, upon the Real Estate for the farming operations. Tenant shall protect all trees, vines and shrubbery upon the Real Estate from injury. 6. Airport Safety. Tenant shall at all time keep all Airport operation safety areas clear of any equipment and obstructions. Should tenant have a need to operate in a safety area, he/she shall notify Airport Manager for assistance to assure safe airport operations at all times. 7. ENVIRONMENTAL. a. Landlord. To the best of Landlord's knowledge to date: i) Neither Landlord nor, Landlord's former or present tenants, are Subject to any investigation concerning the premises by any governmental authority under any applicable federal, state, or local codes, rules, and regulations pertaining to air and water quality, the handling, transportation, storage, treatment, usage, or disposal of toxic or hazardous substances, air emissions, other environmental matters, and all zoning and other land use matters. ii) Any handling, transportation, storage, treatment, or use of toxic or hazardous substances that has occurred on the premises has been in compliance with all applicable federal, state, and local codes, rules, and regulations. A) iii) No leak, spill release, discharge, emission, or disposal of toxic or hazardous substances has occurred on the premises. iv) The soil, groundwater, and soil vapor on or under the premises is free of toxic or hazardous substances except for chemicals (including without limitation fertilizer, herbicides, insecticides) applied in conformance with good fanning methods, applicable rules and regulations and the label directions of each chemical. Landlord shall hold Tenant harmless against liability for removing solid waste disposal sites existing at the execution of this Lease, with the exception that Tenant shall be liable for removal of solid waste disposal sites to the extent that the Tenant created or contributed solid waste disposal site at any time. Landlord shall assume liability and shall indemnify and hold Tenant harmless against any liability or expense arising from any condition which existed, whether known or unknown, at the time of execution of the lease which is not a result of actions of the Tenant or which arises after date of execution but which is not a result of actions of the Tenant. Landlord shall disclose in writing to Tenant the existence of any known wells, underground storage tanks, hazardous waste sites, and solid waste disposal sites. Disclosure may be provided by a properly completed groundwater hazard statement to be supplemented if changes occur. b. Tenant. Tenant shall comply with all applicable environmental laws concerning application, storage and handling of chemicals including, without limitation, herbicides and insecticides and fertilizers. Tenant shall apply any chemicals used for weed or insect control at levels not to exceed the manufacturer's recommendation for the soil types involved. Farm chemicals may not be stored on the premises for more than one year. Farm chemicals for use on other properties may not be stored on this property. Chemicals stored on the premises shall be stored in clearly marked, tightly closed containers. No chemicals or chemical containers will be disposed of on the premises. Application of chemicals for agricultural purposes per manufacturer's recommendation shall not be construed to constitute disposal. Tenant shall employ all means appropriate to insure that well or ground water contamination does not occur, and shall be responsible to follow all applicator's licensing requirements. Tenant shall install and maintain safety check valves for injection of any chemicals and/or fertilizers into an irrigation system injection valve only, not main well check valve. Tenant shall properly post all fields when posting is required whenever chemicals are applied by ground or air. Tenant shall haul and spread all manure on appropriate fields at times and in quantities consistent with environmental protection requirements. Tenant shall not dispose of waste oil, tires, batteries, paint, other chemicals or containers anywhere on the premises. Solid waste may not be disposed of on the premises. Dead livestock may not be buried on the premises. If disposal of solid waste or burial of dead animals is permitted as stated in the previous two sentences, the disposal or burial shall be in compliance with all applicable environmental laws. Tenant shall not use waste oil as a means to suppress dust on any roads on or near the premises. No underground storage tanks, except human waste septic systems that meet current codes, rules, and regulations, shall be maintained on the premises. 3 Tenant shall immediately notify Landlord of any chemical discharge, leak, or spill which occurs on premises. Tenant shall assume liability and shall indemnify and hold Landlord harmless for any claim or violation of standards which results from Tenant's use of the premises. Tenant shall assume defense of all claims, except claims resulting from Landlord's negligence, in which case each party shall be responsible for that party's defense of any claim. After termination, Tenant shall remain liable for violations, which occurred during the term of this Lease. In the absence of selection of an alternative where choices are provided in this paragraph 8b, the choice of word "may" shall be presumed unless that presumption is contrary to applicable environmental laws and regulations. 8. NO LIVESTOCK ON LEASEHOLD PREMISES: The tenant shall not have livestock or animals of any kind on the leasehold premises. 9. TERMINATION OF LEASE. This Lease shall automatically renew upon expiration from year-to-year, upon the same terms and conditions unless either party gives due and timely written notice to the other of an election not to renew this Lease. If renewed, the tenancy shall terminate on February 28th of the year following, provided that the tenancy shall not continue because of an absence of notice in the event there is a default in the performance of this Lease. All notices of termination of this Lease shall be as provided by law. 10. POSSESSION AND CONDITION AT END OF TERM. At the termination of this Lease, Tenant will relinquish possession of the Real Estate to the Landlord. If Tenant fails to do so Tenant agrees to pay Landlord $150.00 per day, as liquidated damages until possession is delivered to Landlord. At the time of delivery of the Real Estate to Landlord, Tenant shall assure that the Real Estate is in good order and condition, and substantially the same as it was when received by Tenant at the commencement of this Lease, excusable or insurable loss by fire, unavoidable accidents and ordinary wear, excepted. 11. LANDLORD'S RIGHT OF ENTRY AND INSPECTION. In the event notice of termination of this Lease has been properly served, Landlord may enter upon the Real Estate or authorize someone else to enter upon the Real Estate to conduct any normal tillage or fertilizer operation after Tenant has completed the harvesting of crops even if this is prior to the date of termination of the lease. Landlord may enter upon the Real Estate at any reasonable time for the purpose of viewing or seeding or making repairs, or for other reasonable purposes. 12. VIOLATION OF TERMS OF LEASE. If Tenant or Landlord violates the terms of this Lease, the other may pursue the legal and equitable remedies to which each is entitled. Tenant's failure to pay any Rent when due shall cause all unpaid Rent to become immediately due and payable, without any notice to or demand upon Tenant. 13. REPAIRS. Tenant shall maintain the fences on the leased premises in good and proper repair. Landlord shall furnish necessary materials for repairs that Landlord deems rd necessary within a reasonable time after being notified of the need for repairs. Tenant shall haul the materials to the repair site without charge to Landlord. 14. NEW IMPROVEMENTS. Tenant shall not make any structural or fencing improvements of any kind to said leased area. 15. WELL, WINDMILL, WATER AND SEPTIC SYSTEMS. No Wells, Windmills, Water Systems or Septic Systems exist on leased property. Landlord does not guarantee continuous or adequate supplies of the water for the premises. 16. EXPENSES INCURRED WITHOUT CONSENT OF LANDLORD. No expense shall be incurred for or on account of the Landlord without first obtaining Landlord's written authorization. Tenant shall take no actions that might cause a mechanic's lien to be imposed upon the Real Estate. 17. NO AGENCY. Tenant is not an agent of the Landlord. 18. TELEVISION AND RADIO. Tenant shall not install any television reception antennas, microwave dishes, radio reception and/or transmission antennas without the written consent of the Landlord. 19. CHOICE OF FORUM AND CHOICE OF LAW. Any legal dispute concerning this lease shall be brought solely in the court system of Washington County, Nebraska and Nebraska law shall apply. 20. ATTORNEY FEES AND COURT COSTS. If either parry files suit to enforce any of the terms of this Lease, the prevailing party shall be entitled to recover court costs and reasonable attorneys' fees. 21. CHANGE IN LEASE TERMS. The conduct of either party, by act or omission, shall not be construed as a material alteration of this Lease until such provision is reduced to writing and executed by both parties as addendum to this Lease. 22. CONSTRUCTION. Words and phrases herein, including the acknowledgement, are construed as in the singular or plural and as the appropriate gender, according to the context. 23. NOTICES. The notices contemplated in this Lease shall be made in writing and shall either be delivered in person, or be mailed in the U.S. mail, certified mail to the recipient's last known mailing address, except for the notice of termination set forth in Section 9, which shall be governed by the Laws of the State of Nebraska. 24. ASSIGNMENT. Tenant shall not assign this Lease or sublet the Real Estate or any portion thereof without prior written authorization of Landlord. 25. ADDITIONAL PROVISIONS. Tenant hereby consents to Landlord filing a financing statement, perfecting his statutory Landlord's lien with the Nebraska Secretary of 5 State, at any time after the execution of this lease; even though said filing may be before Tenant is in possession under the terms of this lease. Lambrech Farms, Tenant `F Authorize Representative of the City of Blair Airport Authority, Landlord STATE OF NEBRASKA ) ) ss. COUNTY OF WASHINGTON ) Before me, the undersigned Notary Public, personally came 0 1 ske , an authorized representative of the Blair Airport Authority, Landlord above, and being duly sworn, stated the facts contained in the foregoing Lease Agreement were true and they signed the same as their free and voluntary act and deed. WITNESS my hand and seal this ?— day of c crr,5 r , 2020. GENERAL NOTARY - State of Nebraska BRENDA R WHEELER j b�e My comm. EV, dune 20, 2024 NOTARY PUBLIC STATE OF NEBRASKA ss. COUNTY OF WASHINGTON Cel Before me, the undersigned Notary Public, personally came, Tenants above, and being duly sworn, stated the facts contained in the foregoing Lease were true and they signed the same as their free and voluntary act and deed. f WITNESS my hand and seal this day of { ;} v , 2026. GENERAL NOTAAMte of Nebraska ANGEL D. CHAISTENSENE-3 MY C—• Exp, August 25, 2021 NOTA; , Y PUBLIC 7