Hay Ground Lease Agreement - Industrial Park

HAYGROUND LEASE AGREEMENT – INDUSTRIAL PARK

THIS AGREEMENT is effective as of the 1st day of May, 2026 between the City of Falls City, Nebraska, a Municipal Corporation (the “Landlord”) and ________________________ (the “Operator”).

WHEREAS, Landlord is the owner of real property situated in the County of Richardson, State of Nebraska, to-wit:

The SW 1/4 Lying North Of CB & Q of Section 14,Township 1 North, Range 16 (20.78a) Tr 2 & 3 Tr 2 Ind Tract N of Meat Co (17.28a), .35A Falls City Industrial Park No 2 Lot 1, .43A PT SW1/4 Industrial Park No 2 Lot 2, .42A PT Sw1/4 Falls City Industrial Park No 2 Lot 3, .40A PT SW1/4 FC Industrial Park No 2 Lot 6, .40A Pt SW1/4 FC Industrial Park No 2 Lot 5, .37A PT SW1/4 FC Industrial Park No 2 Lot 4, Falls City, Richardson County, Nebraska. Approximately Eight and One Half (8.5) Acres.

and depicted on Exhibit A which is attached hereto and incorporated herein by reference (“the Property”), and Operator leases real property for the mowing, raking and baling of the grasses; and

WHEREAS, Landlord desires to lease the Property to Operator and Operator desires to lease the Property from Landlord, and by this written Agreement the parties desire and intend to set forth the terms and conditions of their agreement in writing;

NOW, THEREFORE, for and in consideration of the mutual promises set forth below, the receipt and sufficiency of which is hereby mutually acknowledged, the parties agree as follows:

1. The term of this lease shall begin on May 1, 2026 and end on February 28, 2027. Operator holds option to renew annually for two additional two (2) years for a total of three (3) consecutive years. If Operator utilizes option to renew, Operator shall notify Landlord in writing on or before February 1 of each subsequent year to renew option. Landlord shall confirm and approve the written request for renewing this lease based on compliance with the previous year’s lease. Lease terms will remain the same as the original lease agreement. If Landlord does not confirm acceptance of option renewal notice in writing before February 28, the lease will terminate without further notice or demand. This lease will terminate with no right of renewal on February 29, 2029.

2. The Operator shall pay Landlord annual cash rent in the amount of $_______ per acre. The parties agree that at the initiation of this lease, the property contains 8.5 acres of native grass hay. In the event of a change in the number of tillable acres, the Landlord and Operator shall enter into a supplemental agreement regarding the new number of tillable and/or harvestable acres. If Operator and Landlord cannot agree upon the number of tillable acres, the number of tillable acres shall be as determined for USDA program purposes. One half of the amount due shall be paid by May 1st of each year and the remainder shall be paid on or before October 1st of each year the Lease is in effect. If rent is not paid on time Operator will be in default of this Lease, and if the default is not cured within 30 days the Lease will terminate. Upon such a default and termination Operator shall lose all its rights of access to the Property, and Operator will remain obligated to pay Landlord all unpaid rent for the year.

3. Operator will supply all the equipment for mowing, raking and baling and shall furnish and pay all expenses for the operation of the farm including but not limited to labor, maintaining, mowing, raking and baling and removing the same, utilities, seed, fertilizer, insecticides and herbicides and the costs of applying the same. The real estate taxes shall be paid by the Owner.

4. Operator will operate the property in an efficient and husband-like way, will maintain, mow, rake and bale in a manner that will conserve the Landlord’s property. The Operator will not commit waste on or do damage to the property and will use care to prevent others from doing so. The Operator will not use the property as a storage area for farm equipment except when needed for maintaining, mowing, raking and baling. Bales shall not remain on property for more than twenty (20) days.

5. Operator will use due diligence to prevent noxious weeds from going to seed on the property and will destroy the same and will keep the weeds and grass cut or destroyed in the fields and road frontage will be maintained to standards required by law. If Operator fails to keep the weeds destroyed, Landlord reserves the right to maintain said weeds and Operator agrees to pay for the costs of the same. If invoice is not paid within thirty (30) days, Operator will be in default of this Lease, and if the default is not cured within 30 days the Lease will terminate. Upon such a default and termination Operator shall lose all its rights of access to the Property, and Operator will remain obligated to pay Landlord all unpaid rent for the year.

6. Operator shall follow all label restrictions and instructions in the use of all fertilizers, pesticides, herbicides and other chemicals which may be applied to the Property, and further agrees that all estate will be disposed of in a manner as approved by all federal, state and local environmental agencies and regulations. Operator hereby indemnifies Landlord from any loss, liability, claim or expense, including, without limitation, clean-up, engineering and attorney’s fees and expenses that Landlord may incur by reason of the use, generation or disposal by Operator of any toxic or hazardous waste or substances on or about the Property, or by reason of any investigation of claim of any governmental agency in connection therewith. This indemnity shall survive the term of this Lease or any extension hereof.

7. Operator shall comply with all government programs to which the farm may be subject during the term of this lease. Upon modification of any such program, Operator shall plan and perform according to such modification so as not to jeopardize the rights of the Landlord and the farm to further participation in government programs. The farm shall not be combined with any other tract operated by Operator for government program purposes without the prior written consent of Landlord.

8. Operator shall be entitled to possession of the Property for the sole purpose of maintaining, mowing, raking and baling native grass hay during the term of this Lease and not for any other purpose.

9. Operator shall furnish Landlord a copy of the Operator’s liability insurance naming Landlord as additional insured. The liability insurance shall be in an amount not less than $250,000.00.

10. Operator shall not sublease, re-lease or assign this lease without the prior written approval of Landlord.

11. The Operator shall not harvest or remove any of the crop residue from the Premises without the prior written consent of the Landlord. The Operator shall not keep any livestock on the Premises without the written consent of the Landlord. Landlord specifically reserves all oil, gas mineral leases in existence or entered into in the future; and the right of ingress or egress is reserved in such Landlord, its heirs, and assigns, for the purpose of geophysical exploration and the drilling and production of oil and gas of the removal of other mineral interest; and this lease is subject to such rights except the Operator shall be reimbursed for any actual damage occasioned thereby. Landlord reserves all hunting and fishing rights to this property including all rights to give permission to others.

12. Landlord, may, by resolution of the City Council for the City of Falls City, determine the property, part or all, is needed for use in the City of Falls City, and the property will revert to the Landlord. Operator shall be reimbursed for interference with the use of said property in proportion to the amount of ground and number of months Operator is not able to use said property.

13. Any and all payments or notices given or delivered by any party hereto shall be delivered in person, by private commercial courier for next business day delivery or otherwise deposited in the United States mail, duly certified or registered, postage prepaid, and addressed as set forth below:

To Landlord: City of Falls City

2307 Barada Street

Falls City, NE 68355

To Operator: ___________________________

___________________________

___________________________

___________________________

14. Each party agrees, acknowledges warrants and represents:

A. The foregoing recitals are true, correct, constitute the intent of the parties, and are incorporated by reference into the terms of this Agreement; and

B. The consideration herein expressed is contractual and not a mere matter of recital; and

C. No promise or agreement not expressed in this Agreement has been made by the parties, and any amendments or modifications to this Agreement shall be in made in writing; and

D. All prior oral or written statements relating to the subject matter of this Agreement are merged into this writing; all prior leases and agreements regarding the property are hereby terminated; and

E. They have carefully read the foregoing Agreement and know the contents thereof and have signed the same as their own free act; and

F. In executing this Agreement, they do not rely on any statement or representation made by the other or their respective agents, attorneys or employees, but they rely solely upon their own judgment; and

G. The person executing this Agreement has been duly authorized by all requisite corporate or other entity action, if applicable, and no other proceedings on the part of the party on whose behalf they execute this Agreement are necessary to authorize this Agreement and the conveyances contemplated hereby; and

H. Each shall cooperate fully and execute any and all supplementary documents and to take all additional actions which may be necessary or appropriate to give full force and effect to the basic terms and conditions of this Agreement; and

I. This Agreement shall be binding upon the heirs and successors and assigns of both parties; and

J. This Agreement shall be construed and interpreted in accordance with the laws of the State of Nebraska.

K. The failure or delay of the Landlord to exercise any right or privilege under the lease shall not be held a waiver of any of the terms, covenants or conditions of this lease and any act of the Landlord waiving or which may be held to have waived any specific default of the Operator shall not be construed or held to be a waiver of any future default.

IN WITNESS WHEREOF, the said parties hereto have set their hands the day and year first above written.

LANDLORD:

City of Falls City, Nebraska

By:___________________________

Mayor

STATE OF NEBRASKA )

) ss

RICHARDSON COUNTY )

Before me, a notary public qualified in said County, personally came, ___________________________ Mayor of the City of Falls City, Nebraska, a Municipal Corporation, known to be to be the Mayor and identical person who signed the foregoing Lease and acknowledged the execution thereof to be his voluntary act and deed of said municipal Corporation, and that the Corporate seal was thereto affixed by its authority.

Witness my hand and notary seal this _____ day of _______________________________, 2026.

Notary Public

OPERATOR:

By:___________________________

STATE OF NEBRASKA )

) ss

RICHARDSON COUNTY )

On this ______ day of _________________________, 2026, before me, a notary public, a duly commissioned and qualified for and residing in said county, personally came _______________________________, to me known to be the identical person whose name is affixed to the foregoing Lease and acknowledged same to be his voluntary act and deed.

Witness my hand and notary seal this _______ day of ____________________________, 2026.

Notary Public

EXHIBIT A:

(include map)