LEASE AGREEMENT

          THIS LEASE is entered into this _____ day of ______________, 2016, by and between City of Lawrence, Kansas (OWNER), _____________________ and ____________________ (name), _____________________ (type), (OPERATOR).

1. The OWNER hereby leases to the OPERATOR, to occupy and use solely for agricultural purposes, tracts of land in the City of Lawrence, Douglas County, Kansas located in Sections 32, Township 12 South, Range 20 East of the 6th Principal Meridian and comprising approximately 56 acres, more particularly described as follows:

56 ACRES EAST OF THE CITY'S WASTEWATER TREATMENT PLANT; BOUNDED BY THE KANSAS RIVER TO THE NORTH AND 11TH STREET/N1550 ROAD TO THE SOUTH. (SEE ATTACHED MAP AS REFERENCE), ALL IN DOUGLAS COUNTY, KANSAS,

of which approximately 56 acres are tillable for agricultural purposes.

2. The term of the lease shall commence January 1, 2017 and shall expire on January 1, 2020 unless either the OWNER or OPERATOR provides written notification to the other party by August 15th of any year of the termination of this Agreement for the coming year; provided that as an alternative to termination the parties may mutually agree to amendments to this Agreement, including an extension of the term of this Agreement.

3. OPERATOR has had possession of the property since 2006 and accepts it in its existing condition at the commencement of this agreement. by taking possession of the property accepts it in that condition existing at the time of occupancy. The OPERATOR, by taking possession waives any claim that OPERATOR may have concerning the condition of the property.

4. For the use of said premises for the term described in paragraph numbered 2 of this Lease Agreement, Operator hereby covenants and agrees to annually $76 per acre to Owner as cash rent for use of the premises. Rent is due and payable on November 1st of each year. The number of acres farmed each year will be based on US Department of Agriculture, Farm Service Agency (FSA) measurements during the crop year.

5. In exchange for rent, Operator is entitled to 100% of crop value, revenue, and any related government payments associated with the agricultural uses of said property.

6. Amendments and alterations to this lease shall be in writing by both parties.

7. This lease shall not be deemed to give rise to an agency or partnership relation, and neither party shall have authority to obligate the other without written consent, except as specifically provided in this lease. It is expressly acknowledged that the parties’ relationship is solely that of operator/owner.

8. The OPERATOR shall hold OWNER, its agents, officials, and employees free and harmless, and shall indemnify OWNER from loss from each and every suit, liability, expense, damage or claim, or demand of whatever nature, made on behalf of or by any person or persons, for any wrongful act or omission on the part of the OPERATOR, its employees, agents, officials, contractors, guests, licensees, and invitees. OWNER shall hold OPERATOR, OPERATOR'S agents, officials, and employees free and harmless, and shall indemnify OPERATOR from loss from each and every suit, liability, expense, damage or claim, or demand of whatever nature, made on behalf of or by any person or persons, for any wrongful act or omission on the part of the OWNER, its employees, agents, and officials.

9. At all times during the term of this Lease Agreement, and during any use, occupancy, or possession of the premises before such term commences, OPERATOR shall, at OPERATOR'S  own expense, maintain comprehensive general liability insurance protecting and indemnifying  the OWNER against any and all claims and liabilities for injury or damage to persons or property or for the loss of life or property occurring upon, in or about the premises caused by or resulting from any act or omission of the OPERATOR, OPERATOR'S employees, agents, contractors, guests, licensees, and invitees. Such insurance shall provide for coverage of not less than $500,000.00 for injury or death to any one person, and not less than $1,000,000.00 for injury or death occurring to more than one person as a result of one accident, and not less than $1,000,000.00 for property damage. OPERATOR further shall, at OPERATOR'S expense, take out and maintain at all times all necessary workers' compensation insurance covering all persons employed by OPERATOR in and about the premises.

Before OPERATOR'S use, occupancy, or possession of the premises, OPERATOR shall obtain all such insurance and deliver to the OWNER policies of such insurance, or certificates evidencing the issuance of such policies, during the initial terms of such insurance and all renewals thereof. Certificates of insurance shall be provided delivered annually to the OWNER’s City Clerk, and no later than July 15th of any year.

All insurance required hereunder shall name as an additional insured, the OWNER, its employees and agents. OPERATOR shall not assign its insurance policy to a third party without written consent from OWNER. OPERATOR shall not sub-contract any work unless notice has first been provided to OWNER and written consent by OWNER has been granted.

All insurance required hereunder shall be effected under valid and enforceable policies issued by insurers of recognized responsibility authorized to do business in the State of Kansas, and shall contain a provision whereby the insurer agrees not to cancel the insurance without thirty (30) days prior written notice to the City Manager, 6 E. 6th Street, Lawrence, KS 66044.

10. The OPERATOR shall be responsible for performing all labor necessary for the planting, care, and harvesting of all crops grown on the land. All costs, including seeds and fertilizer, shall be the responsibility of OPERATOR except as otherwise provided herein.

11. The OWNER reserves to itself, its agent, employees, or assigns, the right to enter the farm at any reasonable time for purposes of a) consultation with the OPERATOR; b) making repairs, improvements and inspections; and c) after notice of termination of the lease is given, performing customary seasonal work, none of which is to interfere with the OPERATOR in carrying on regular operations.

12. To improve the premises, conserve its resources, and maintain it in a high state of cultivation, the two parties agree as follows:

A. The OPERATOR will maintain the premises during the tenancy in as good a condition as existed at the beginning of the tenancy, normal wear and depreciation, and damage from causes beyond the OPERATOR'S control excepted.

B. The OPERATOR will not, without oral consent of the OWNER, 1) plow permanent pasture or meadow land; 2) cut live trees for sale or for personal uses, but may take for fuel or use on the premises only dead or unmarketable timber designated by the OWNER.

C. The OPERATOR will spread the manure, straw or other crop residues on the premises, as appropriate.

D. The OPERATOR will use diligence to prevent noxious weeds from going to seed on the premises. The OPERATOR agrees to control noxious weeds, mow or cut weeds and sprouts in waterways and along roadsides and field edges, to keep all hedges trimmed in the manner provided by law. It is also agreed that in the event of any noxious weeds in such areas, OWNER, by giving prior approval, will furnish materials and OPERATOR will apply said materials for control.

E. The OPERATOR agrees not to allow livestock to be pastured or wintered on the premises.

F. The OPERATOR agrees that application of additional fertilizer shall be in accordance with    the soil test recommendation and minimum crop requirements. The OWNER may intermittently apply biosolids from the wastewater treatment plant as a fertilizer and soil amendment to the property with notice and consent of OPERATOR.

G. The OPERATOR will not, without written consent of OWNER, 1) erect or permit to be erected on the premises any non-removable structure or building; 2) incur any expense to the OWNER for such purposes; or 3) add electrical wiring, plumbing or heating to any buildings. If consent is given to undertake any of the items identified in this paragraph, OPERATOR will make such additions in compliance with all applicable laws. All alterations, additions, or improvements to the premises made by the tenant shall become the property of the OWNER upon termination of the lease. The OWNER shall have the right to require the OPERATOR to remove all alterations, additions, or improvements at OPERATOR'S cost, upon termination of lease.

H. The OWNER shall pay one-half of all lime treatment for soil treatment on the above-described land. Any lime treatment recommended by soil tests shall not exceed one-third of the described property farmed by the OPERATOR in any one year without prior consent of the OWNER.

I. The OPERATOR will control soil erosion as completely as practicable and in the event of soil blowing, the OPERATOR shall take care to remediate blowing soil promptly at the OPERATOR’S expense. No stubble is to be burned from the ground in the leased area.

J. The OPERATOR will keep in good repair, terraces, open ditches, inlets and outlets of tile drains, preserve all established water courses or ditches including grass waterways when seeded by the OWNER, and refrain from any operations or practices that will incur them.

K. Before any new conservation practices or measures are carried out, the parties will agree between themselves as to the nature and cost of such improvements.

L. It is also understood and agreed that the rights granted hereunder will not be exercised in such a way as to interfere with or adversely affect the use, operation, maintenance, or development of the OWNER'S Wastewater Treatment Plant.

13. OPERATOR agrees that all farming activities shall be in compliance with applicable federal or state regulations and/or guidelines, if any, including those set forth by the United States Environmental Protection Agency, United States Department of Agriculture, the United States Food and Drug Administration, and the Kansas Department of Health and Environment.

14. This lease shall be binding upon the heirs, executors, administrators and assigns of both the OWNER and OPERATOR.

15. OPERATOR shall not, at any time during the term of this lease or any renewal or extension thereof, in any manner, either directly or indirectly, assign, sublease, sublet, or transfer this lease or any interest therein, without the prior written consent of the OWNER.

16. It is further agreed between the parties that in case said OWNER shall require immediate possession of the premises, or any part thereof, for any purpose whatsoever, the OWNER shall be entitled to the same, and said OPERATOR shall surrender to the OWNER the premises herein rented, or any such part thereof, on payment of the value of any crops which may be growing and immature and a prorated share of crop rental revenues received. If the OWNER and OPERATOR cannot agree as to such value, it shall be left to three arbitrators experts or mediators, whose decision shall be final; one to be chosen by the OWNER, one by the OPERATOR, and the two arbitrators experts or mediators to choose a third.

17. The laws of the State of Kansas shall govern the validity, performance, and enforcement of this lease agreement. Venue for any claim arising from this agreement shall be in Douglas County.

18. In the event a court of competent jurisdiction shall declare any portion of this lease agreement invalid, the parties agree that the remaining terms and provisions of this lease agreement shall remain in full force and effect.

19. Either the OWNER or OPERATOR may declare that the other party has defaulted on the provisions of this Lease Agreement and that the Lease Agreement is thereby terminated; provided that such default shall be preceded by a Notice of Default to the other party which shall provide the defaulting party with details on the default and a reasonable opportunity, not exceeding thirty (30) days, to cure such default.

20. If at any time OPERATOR elects to erect or install a fence or other enclosure on the property, OPERATOR shall be responsible for all costs associated with such fencing or enclosure, and shall at all times keep such fencing or enclosure in good and repaired condition.

21. This Agreement constitutes the entire agreement of the parties and supersedes all prior representations, understandings, and agreements between the parties.

IN WITNESS WHEREOF, the parties have hereunto set their hands on the date first above written.

The City of Lawrence, Kansas                                               (Lessee Name)

_________________________                                     _________________________
Thomas M. Markus, City Manager                                (Lessee Signing)
OWNER                                                                  OPERATOR

STATE OF KANSAS             )
COUNTY OF DOUGLAS        )

COMES NOW a Notary Public in and for the State and County last set forth above, and states upon their oath, that Thomas M. Markus, City Manager, City of Lawrence, Kansas, did execute this Agreement, and acknowledge the same to be his voluntary act, on the _____ day of _______________, 2016.

__________________________________________
Notary                                                

My Commission Expires:

STATE OF KANSAS             )
COUNTY OF DOUGLAS        )

COMES NOW a Notary Public in and for the State and County last set forth above, and states upon their oath, that ____________________, did execute this Agreement, and acknowledge the same to be his voluntary act, on the _____ day of ______________, 2016.

__________________________________________
Notary                                                

My Commission Expires: