HomeMy WebLinkAbout013_Simkins-Hallin Draft Lease Agreement BNSFIndefinite Term Lease – Land MRL Form 405 February 2015 Page 1
INDEFINITE TERM LEASE LAND NO. 502,270
02BOZEMAN
THIS INDEFINITE TERM LEASE FOR LAND ("Lease") is dated as of the 1st day of October, 2023 (the "Effective
Date") between MONTANA RAIL LINK, INC., a Montana corporation ("Lessor"), whose mailing address is PO Box 16624,
Missoula, MT 59808-6624 and physical address is 101 International Way, Missoula, MT 59808 and;
SIMKINS-HALLIN, INC., A MONTANA CORPORATION, ("Lessee")
whose address is 326 N. BROADWAY
PO BOX 938
BOZEMAN, MT 59715
RECITALS
A. Lessor is in the railroad transportation business and leases a system of rail tracks ("Lessor's Track(s)")
and various real properties associated therewith from BNSF Railway Company, a Delaware corporation ("BNSF"), pursuant
to that certain Agreement between Lessor and BNSF dated July 21, 1987 ("Master Lease"), including the Property
described below which Lessee desires to further lease from Lessor.
B. Lessor has agreed to lease to Lessee the Property, subject to the terms, conditions and limitations provided
herein.
AGREEMENTS
In consideration of the mutual covenants herein, Lessor and Lessee hereby agree as follows:
Section 1. Property, Term and Master Lease.
A. Lessor leases to Lessee and Lessee rents from Lessor, subject to the covenants, agreements, terms,
provisions and conditions of this Lease, that certain parcel of real property situated in the City of Bozeman, County of
Gallatin, State of Montana, Mile Post 142+0780.2, Survey Station 7505+40.2, as shown on the plat, dated March 20, 2023
a copy of which is attached hereto as Exhibit "A" and made a part hereof ("Property").
B. Lessee leases the Property from Lessor beginning October 1, 2023 ("Commencement Date"), and shall
continue until terminated by either party as provided in this Section 1(B). This Lease may be terminated by either party, at
any time, without cause, for convenience, by serving upon the other party written notice of termination at least thirty (30)
days in advance. Upon termination, this Lease and all rights of Lessee shall absolutely cease.
C. Upon termination, either (i) Lessor may retain from prepaid rent, as an additional charge for use of the
Property, a sum equal to three (3) months Rent (as defined below), and any unearned portion of the annual Rent, in excess
of such retainage, paid in advance shall be refunded to Lessee or (ii) if Lessor has not been paid sufficient Rent to satisfy
the above retainage, then Lessee shall pay Lessor a sufficient sum so that, together with sums already held by Lessor,
Lessor shall hold a sum equal to three (3) months Rent which Lessor shall retain as an additional charge for use of the
Property, and such additional sum shall be paid by Lessee within thirty (30) days of termination of the Lease.
D. Each consecutive twelve-month period this Lease is in effect, beginning with the Effective Date of this
Lease, is herein called a "Lease Year."
E. Lessee acknowledges that it is assuming all risks associated with Lessor's right to terminate this Lease at
any time as provided above, and (i) Lessor gives no assurance that Lessor will delay termination of this Lease for any length
of time whatsoever, (ii) Lessee may expend money and effort during the term of this Lease which may not ultimately be of
any benefit to Lessee if Lessor terminates this Lease, but nonetheless, Lessor shall have the right to terminate the Lease if
Lessor determines in its sole and absolute discretion that Lessor desires to terminate, and (iii) in no event shall Lessor be
deemed to have any legal obligations to continue to lease the Property for any length of time.
Indefinite Term Lease – Land MRL Form 405 February 2015 Page 2
F. This Lease is subject and subordinate to the Master Lease. BNSF hereby agrees by its signature below to
recognize Lessee’s rights under this Lease, if, prior to the termination of this Lease, or to the expiration of the term of this
Lease, the term of the Master Lease expires, the Master Lease is terminated or BNSF reenters and repossesses the
Property after a default by Lessor under the Master Lease. If BNSF succeeds to the rights of Lessor as the "Lessor" under
this Lease, Lessee agrees that (i) BNSF shall not be liable or responsible for any breach of or default under this Lease
arising prior to the date that BNSF succeeds to the rights of Tenant as the "Lessor" under this Lease; (ii) BNSF shall not be
required to cure or correct any breach or default under this Lease arising prior to the date that BNSF succeeds to the rights
of Lessor as the "Lessor" under this Lease; and (iii) no breach of or default under this Lease arising prior to the date that
BNSF succeeds to the rights of Lessor as the "Lessor" under this Lease shall excuse, delay, release or relieve Lessee from
the payment and performance of all of Lessee’s duties and obligations under this Lease. The preceding sentence is not
intended and shall not be construed to affect any rights or remedies of Lessee against Lessor arising or resulting from a
breach of or default under this Lease by Lessor prior to the date that BNSF succeeds to the rights of Lessor as the "Lessor"
under this Lease. If BNSF succeeds to the rights of Lessor as the "Lessor" under this Lease, Lessee agrees to recognize
BNSF as the "Lessor" under this Lease and timely tender payment and performance of Lessee’s duties and obligations
under this Lease to BNSF as if BNSF were named as "Lessor" in this Lease.
Section 2. Use and Compliance.
A. Lessee may use the Property for the sole and exclusive purpose of outdoor building materials storage:
lumber and trusses and for no other purpose without the prior written consent of Lessor. Lessee shall respond to Lessor's
reasonable inquiries regarding the use or condition of the Property.
B. Lessee shall comply with all Laws applicable to Lessee, the Property, this Lease and Lessee’s activities
and obligations hereunder, and shall have the sole responsibility for costs, fees, or expenses associated with such
compliance. As used herein, the term "Laws" shall mean any and all statutes, laws, ordinances, codes, rules or regulations
or any order, decision, injunction, judgment, award or decree of any public body or authority having jurisdiction over Lessee,
the Property, this Lease, and/or Lessee’s obligations under this Lease, and shall include all Environmental Laws (as defined
in Section 4(A)).
C. If any governmental license or permit is required or desirable for the proper and lawful conduct of Lessee's
business or other activity in or on the Property, or if the failure to secure such a license or permit might in any way affect
Lessor or BNSF, then Lessee, at Lessee's expense, shall procure and thereafter maintain such license or permit and submit
the same to inspection by Lessor. Lessee, at Lessee's expense, shall at all times comply with the requirements of each
such license or permit.
Section 3. Rent.
A. Lessee shall pay as rental for the Property, in advance, an amount equal to One Hundred Four Thousand
Nine Hundred Eighty Dollars ($104,980.00) annually ("Rent"). Lessor may, in its sole discretion, adjust the Rent annually
to reflect a then current fair market rental value. Billing or acceptance by Lessor of any rental shall not imply a definite term
or otherwise restrict either party from canceling this Lease as provided herein. Either party hereto may assign any
receivables due it under this Lease; provided, however, such assignments shall not relieve the assignor of any of its rights
or obligations under this Lease. All Rent and other monetary payments under this Lease from Lessee to Lessor shall be
delivered solely to the following address:
Montana Rail Link, Inc.
PO Box 16624
Missoula, MT 59808
Lessor shall have the right to designate at any time and from time to time a different address for delivery of such payments
by written notice to Lessee pursuant to the notice provisions of Section 36 below. No Rent or other payment sent to any
other address shall be deemed received by Lessor unless and until Lessor has actually posted such payment as received
on the account of Lessee, and Lessee shall be subject to all default provisions hereunder, late fees and other consequences
as a result thereof in the same manner as if Lessee had failed or delayed in making any payment.
B. Lessee acknowledges that Lessor utilizes the rental collection system involving direct deposit of monies
received through a financial institution selected by Lessor, which precludes Lessor's ability to exercise rejection of a rental
payment before Lessee's check is cashed. Lessee agrees that as a condition of Lessor granting this Lease Lessee hereby
waives any rights it may have under law to force continuation of this Lease due to Lessor having accepted and cashed
Indefinite Term Lease – Land MRL Form 405 February 2015 Page 3
Lessee's rental remittance. Lessor shall have the option of rejecting Lessee's payment by refunding to Lessee the rental
amount paid by Lessee, adjusted as set forth in this Lease, and enforcing the termination provisions of this Lease.
C. Lessee shall pay the Rent and all additional amounts due pursuant to Section 9 as and when the same
become due and payable, without demand, set-off, or deduction. Lessee's obligation to pay Rent and all amounts due under
this Lease is an independent covenant and no act or circumstance, regardless of whether such act or circumstance
constitutes a breach under this Lease by Lessor, shall release Lessee of its obligation to pay Rent and all amounts due as
required by this Lease.
D. If any Rent or any payment under Section 9 or any other payment due by Lessee hereunder is not paid
within five (5) days after the date the same is due, Lessor may assess Lessee a late fee ("Late Fee") in an amount equal
to 5% of the amount which was not paid when due to compensate Lessor for Lessor's administrative burden in connection
with such late payment. In addition to said Late Fee, Lessee shall pay interest on the unpaid sum from the due date thereof
to the date of payment by Lessee at an annual rate equal to (i) the greater of (a) for the period January 1 through June 30,
the prime rate last published in The Wall Street Journal in the preceding December plus two and one-half percent (2 1/2%),
and for the period July 1 through December 31, the prime rate last published in The Wall Street Journal in the preceding
June plus two and one-half percent (2 1/2%), or (b) twelve percent (12%), or (ii) the maximum rate permitted by law,
whichever is less.
Section 4. Environmental.
A. Lessee shall strictly comply with all federal, state and local environmental laws and regulations in its
occupation and use of the Property, including, but not limited to, the Resource Conservation and Recovery Act, as amended
(RCRA), the Clean Water Act, the Clean Air Act, the Oil Pollution Act, the Hazardous Materials Transportation Act, and
CERCLA (collectively referred to as the "Environmental Laws"). Lessee shall not maintain any treatment, storage, transfer
or disposal facility, or underground storage tank, as defined by Environmental Laws, on the Property. Lessee shall not
release or suffer the release of oil or hazardous substances, as defined by Environmental Laws, on or about the Property.
B. Lessee shall give Lessor immediate notice to Lessor's Manager of Environmental Projects at 406.523.1415
and to BNSF's Resource Operations Center at 800.832.5452 of any release of hazardous substances on or from the
Property and to Lessor's Manager of Environmental Projects at 406.523.1415, Lessor’s Real Estate Department promptly
in writing, and to BNSF's Manager Environmental Leases at 785.435.2386 for any violation of Environmental Laws, or
inspection or inquiry by governmental authorities charged with enforcing Environmental Laws with respect to Lessee's use
of the Property. Lessee shall use its best efforts to promptly respond to any release on or from the Property. Lessee also
shall give Lessor's Manager of Environmental Projects, Lessor’s Real Estate Department and BNSF's Manager
Environmental Leases immediate notice of all measures undertaken on behalf of Lessee to investigate, remediate, respond
to or otherwise cure such release or violation and shall provide to Lessor's Manager of Environmental Projects, Lessor’s
Real Estate Department and BNSF's Manager Environmental Leases copies of all reports and/or data regarding any
investigations or remediations of the Property.
C. In the event that Lessor and/or BNSF have notice from Lessee or otherwise of a release or violation of
Environmental Laws on the Property which occurred or may occur during the term of this Lease, Lessor and BNSF may
require Lessee, at Lessee's sole risk and expense, to take timely measures to investigate, remediate, respond to or
otherwise cure such release or violation affecting the Property or Lessor's right-of-way.
D. Lessee shall promptly report to Lessor and BNSF in writing any conditions or activities upon the Property
which create a risk of harm to persons, property or the environment and shall take whatever action is necessary to prevent
injury to persons or property arising out of such conditions or activities; provided, however, that Lessee's reporting to Lessor
and BNSF shall not relieve Lessee of any obligation whatsoever imposed on it by this Lease. Lessee shall promptly respond
to Lessor’s and/or BNSF's request for information regarding said conditions or activities.
E. Hazardous Materials are not permitted on the Property except as otherwise described herein. Lessee
expects to use on the Property the following Hazardous Materials: none, and to store on the Property the following
Hazardous Materials (as defined in Section 4(F) below): none; provided, however, that Lessee may only use and store the
listed Hazardous Materials in such amounts as are necessary and customary in Lessee's industry for the permitted uses
hereunder ("Permitted Substances"). All such Permitted Substances shall be placed, used, and stored in strict accordance
with all Environmental Laws. Use or storage on the Property of any Hazardous Materials not disclosed in this Section 4(E)
is a breach of this Lease.
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F. For purposes of this Section 4, "Hazardous Materials" means all materials, chemicals, compounds, or
substances (including without limitation asbestos, petroleum products, and lead-based paint) identified as hazardous or
toxic under Environmental Laws.
G. Lessor or BNSF may, at its option prior to termination of this Lease, require Lessee to conduct an
environmental audit of the Property through an environmental consulting engineer acceptable to Lessor or BNSF, at
Lessee's sole cost and expense, to determine if any noncompliance or environmental damage to the Property has occurred
during Lessee's occupancy thereof. The audit shall be conducted to Lessor's and BNSF satisfaction and a copy of the audit
report shall promptly be provided to Lessor and BNSF for their review. Lessee shall pay all expenses for any remedial action
that may be required as a result of said audit to correct any noncompliance or environmental damage, and all necessary
work shall be performed by Lessee prior to termination of this Lease.
Section 5. Access to Adjacent Property by Lessee.
If access to and from the Property can be accomplished only through use of Lessor's property adjacent to the
Property, such use is granted for ingress and egress only and on a non-exclusive basis, subject to such restrictions and
conditions as Lessor may impose by notice to Lessee. Lessor shall have the right to designate the location or route to be
used. Lessee understands and agrees that all of the obligations under this Lease applicable to Lessee shall also be
applicable to Lessee with respect to Lessee's use of any property adjacent to the Property, including, without limitation, the
indemnity provisions of Section 13. Notwithstanding anything to the contrary herein, this Section 5 shall not grant Lessee
any right to cross any of Lessor's Tracks. Any such crossing rights may only be granted by a separate written agreement
between Lessor and Lessee.
Section 6. Access to Property by Lessor.
A. Lessor and its contractors, agents and other designated third parties may at all reasonable times and at
any time in case of emergency, in such manner as to not unreasonably interfere with Lessee's use of the Property as
allowed hereunder, (i) enter the Property for inspection of the Property or to protect the interests of Lessor and BNSF in the
Property or to protect from damage any property adjoining the Property, (ii) enter the Property to construct, maintain, and
operate trackage, fences, pipelines, communication facilities, fiber optic lines, wireless towers, telephone, power or other
transmission lines, or appurtenances or facilities of like character, upon, over, across, or beneath the Property; provided
that Lessor and BNSF shall have no obligation to pay any sum for any damage, including damage to growing crops, (iii)
take all required materials and equipment onto the Property, and perform all required work therein, for the purpose of making
alterations, repairs, or additions to the Property as Lessor may elect if Lessee defaults in its obligation to do so, (iv) enter
the Property to show the Property to holders of encumbrances on the interest of Lessor in the Property, or to prospective
purchasers or mortgagees of the Property, and all such entries and activities shall be without any rebate of Rent to Lessee
for any loss of occupancy of the Property, or damage, injury or inconvenience thereby caused.
B. For purposes stated in this Section 6, Lessor will at all times have keys with which to unlock all of the doors
and gates on the Property, and Lessee will not change or alter any lock thereon without Lessor's permission.
C. In an emergency, Lessor will be entitled to use any and all means that Lessor may deem proper to open
doors, gates, and other entrances to obtain entry to the Property. Any entry to the Property by Lessor as described in this
Section 6 shall not under any circumstances be construed or deemed to be a forcible or unlawful entry into, or a detainer
of, the Property, or any eviction of Lessee from the Property, and any damages caused on account thereof will be paid by
Lessee.
Section 7. Warranties.
LESSOR DOES NOT WARRANT ITS LEASEHOLD INTEREST IN OR BNSF'S TITLE TO THE PROPERTY NOR
UNDERTAKE TO DEFEND LESSEE IN THE PEACEABLE POSSESSION OR USE THEREOF. NO COVENANT OF
QUIET ENJOYMENT IS MADE. This Lease is made subject to all outstanding rights or interests of others. If the Property
is subsequently found to be subject to prior claim, this Lease shall terminate immediately on notice to that effect from Lessor.
Lessee accepts this Lease subject to that possibility and its effect on Lessee’s rights and ownership of the Lessee
Improvements. In case of eviction of Lessee by anyone other than Lessor, or anyone owning or claiming title to or any
interest in the Property, Lessor and BNSF shall not be liable to Lessee for damage of any kind (including any loss of
ownership right to Lessee's Improvements) or to refund any Rent paid hereunder, except to return the unearned portion of
any Rent paid in advance.
Indefinite Term Lease – Land MRL Form 405 February 2015 Page 5
Section 8. Property Condition; Lessee Improvements.
A. Lessee represents that the Property, the title thereto, any subsurface conditions thereof, and the present
uses thereof have been examined by the Lessee. Lessee accepts the same in the condition in which they now are, without
representation or warranty, expressed or implied, in fact or by law, by the Lessor, and without recourse to the Lessor and
BNSF as to the title thereto, the nature, condition or usability thereof, or the uses to which the Property may be put. By
taking possession or commencing use of the Property, Lessee (i) acknowledges that it is relying on its own inspections of
the Property and not on any representations from Lessor regarding the Property; (ii) establishes conclusively that the
Property is at such time in satisfactory condition and in conformity with this Lease and all zoning or other governmental
requirements in all respects; and (iii) accepts the Property in its condition as of the Commencement Date on an "AS IS,"
"WHERE IS," and "WITH ALL FAULTS" basis, subject to all faults and infirmities, whether now or hereafter existing. Nothing
contained in this Section 8 affects the commencement of the term of the Lease or the obligation of Lessee to pay Rent as
provided above. Lessee represents and warrants to Lessor as follows: (i) Lessee does not intend to, and will not, use the
Property for any purpose other than as set forth in Section 2; (ii) Lessee has previously disclosed in writing to Lessor all
special requirements (but Lessor shall have no responsibility relative to any such special requirement), if any, which Lessee
may have in connection with this intended use; and (iii) Lessee has undertaken and has reasonably and diligently completed
all appropriate investigations regarding the suitability of the Property for Lessee’s intended use. Lessee shall comply with
any covenants, conditions or restrictions now or hereafter affecting the Property, and acknowledges that Lessor may place
any covenants, conditions or restrictions of record affecting the Property prior to or during the term of the Lease. In such
event, this Lease will be subject and subordinate to all of the same without further action by either party, including, without
limitation, the execution of any further instruments. Lessee acknowledges that Lessor has given material concessions for
the acknowledgements and provisions contained in this Section 8, and that Lessor is relying on these acknowledgements
and agreements and would not have entered into this Lease without such acknowledgements and agreements by Lessee.
B. If initial improvements are necessary for Lessee's use of the Property, Lessee, at Lessee's sole cost and
expense, shall, on or after the Commencement Date, construct and install such initial improvements to the Property which
are necessary for Lessee's use of the Property and are acceptable to Lessor and BNSF in Lessor's and BNSF's sole
discretion ("Lessee Improvements"). The construction and installation of any Lessee Improvements shall be subject to
Lessor's and BNSF's prior written approval of plans and specifications for such Lessee Improvements to be prepared by
Lessee and submitted to Lessor and BNSF for approval as set forth below, such approval to be in Lessor's and BNSF's
sole and absolute discretion. Within forty-five (45) days after the Commencement Date, Lessee shall submit detailed plans
and specifications, and the identity of Lessee's proposed general contractor for the Lessee Improvements for Lessor's and
BNSF's review and approval. Lessor and BNSF shall either approve or disapprove the plans and specifications and general
contractor (in their sole and absolute discretion) by written notice delivered to Lessee within sixty (60) days after receipt of
the same from Lessee. In the event of any disapproval, Lessor and BNSF shall specify the reasons for such non-approval.
If Lessor and BNSF fail to deliver notice to Lessee of Lessor's approval or disapproval of the plans, specifications, and
proposed general contractor within the time period discussed above, Lessee's plans, specifications and proposed contractor
shall be deemed disapproved. If Lessor or BNSF specifies objections to the plans and specifications or general contractor
as herein provided and Lessor and Lessee or BNSF and Lessee are unable to resolve the objections by mutual agreement
within a period of thirty (30) days from the date of delivery of written notice thereof, Lessee, as its sole remedy, to be
exercised not later than ten (10) days after the expiration of said thirty (30) days period, may terminate this Lease by written
notice to Lessor. Upon approval of the plans and specifications by Lessor and BNSF, Lessor, BNSF and Lessee shall sign
the same, and they shall be deemed a part hereof. All Lessee Improvements shall be constructed and installed in
accordance with the terms and conditions of Exhibit "B" attached to the Lease and all applicable terms and conditions of
the Lease regarding alterations and improvements. Lessee shall not construct any other alteration or improvement to the
Property without Lessor's Real Estate Department’s prior written consent and BNSF's prior written consent. The Lessee
Improvements constructed pursuant to the above provisions shall be owned by Lessee during the term of the Lease and
removed from the Property or surrendered to the Lessor pursuant to Section 20 below upon termination of this Lease.
Section 9. Taxes and Utilities.
A. In addition to Rent, Lessee shall pay all taxes, utilities, and other charges of every kind and character,
whether foreseen or unforeseen, ordinary or extraordinary, which are attributable to the term of this Lease and may become
due or levied against the Property, against Lessee, against the business conducted on the Property or against the Lessee
Improvements placed thereon during the term hereof, even though such taxes, utilities or other charges may not become
due and payable until after termination of this Lease provided; however, that Lessee shall only be responsible for the
payment of property taxes levied against the Property to the extent such taxes are separately assessed by the applicable
taxing authority as a result of this Lease. Lessee agrees that Lessor shall not be required to furnish to Lessee any utility or
other services. If this Lease is a transfer of an existing lease, Lessee must make arrangements with the present lessee for
payment of any delinquent and current taxes, utilities, and other charges prior to taking possession. If such arrangements
Indefinite Term Lease – Land MRL Form 405 February 2015 Page 6
are not made, Lessee agrees to pay all such taxes, utilities, and other charges. If Lessor should make any such payments,
Lessee shall promptly upon demand reimburse Lessor for all such sums.
B. Should the Property be subject to special assessment for public improvements in the amount of Five
Hundred Dollars ($500.00) or less during any Lease Year, Lessee shall promptly reimburse Lessor the amount in full. Should
the assessment exceed Five Hundred Dollars ($500.00) during any Lease Year then such excess shall be paid by Lessor,
but the Rent herein shall be increased by an amount equal to twelve percent (12%) of such excess payable for each Lease
Year such amounts are payable.
Section 10. Track Clearance.
A. Lessee shall not place, permit to be placed, or allow to remain, any permanent or temporary material,
structure, pole, or other obstruction within (i) 8½ feet laterally from the centerline of any of Lessor's Tracks on or about the
Property (nine and one-half (9-1/2) feet on either side of the centerline of any of Lessor's Tracks which are curved) or (ii) 24
feet vertically from the top of the rail of any of Lessor's Tracks on or about the Property ("Minimal Clearances"); provided
that if any law, statute, regulation, ordinance, order, covenant or restriction ("Legal Requirement") requires greater
clearances than those provided for in this Section 10, then Lessee shall strictly comply with such Legal Requirement.
However, vertical or lateral clearances which are less than the Minimal Clearances but are in compliance with Legal
Requirements will not be a violation of this Section 10, so long as Lessee strictly complies with the terms of any such Legal
Requirement and posts a sign on the Property clearly noting the existence of such reduced clearance. Any such sign shall
be painted with black and white reflective paint.
B. Lessor's or BNSF's operation over any Lessor's Track on or about the Property with knowledge of an
unauthorized reduced clearance will not be a waiver of the covenants of Lessee contained in this Section 10 or of Lessor's
or BNSF's rights to recover for and be indemnified and defended against such damages to property, and injury to or death
of persons, that may result therefrom. In addition to, and not in exclusion of, other provisions of this Lease, Lessor and
Lessee hold BNSF harmless from liability occurring as a result of Lessor's provision of rail freight services over the Property.
C. Lessee shall not place or allow to be placed any freight car within 250 feet of either side of any at-grade
crossings on Lessor's Tracks.
Section 11. Repairs; Maintenance.
A. Lessee shall, at its sole expense, take good care of the Property (including all Lessee Improvements) and
shall not do or suffer any waste with respect thereto and Lessee shall promptly make all necessary or desirable Repairs to
the Property. The term "Repairs" means all reasonable repair and maintenance necessary to keep the Property (including
all Lessee Improvements) in good condition and includes, without limitation, replacements, restoration and renewals when
necessary. Lessee shall keep and maintain any paved areas, sidewalks, curbs, landscaping and lawn areas in a clean and
orderly condition, and free of accumulation of dirt and rubbish.
B. Lessor shall not have any liability or obligation to furnish or pay for any services or facilities of whatsoever
nature or to make any Repairs or alterations of whatsoever nature in or to the Property, including but not limited to structural
repairs, or to maintain the Property in any manner. Lessee acknowledges that Lessor shall have no responsibility for
management of the Property.
Section 12. Safety; Dangerous and Hazardous Conditions.
It is understood by Lessee that the Property may be in dangerous proximity to railroad tracks, including Lessor's
Tracks, and that persons and property, whether real or personal, on the Property will be in danger of injury, death or
destruction incident to the operation of the railroad, including, without limitation, the risk of derailment, fire, or inadequate
clearance (including sight clearance or vision obstruction problems at grade crossings on or adjacent to the Property), and
Lessee accepts this Lease subject to such dangers, and acknowledges that its indemnification obligations hereunder extend
to and include all such risks.
Section 13. Indemnity.
A. TO THE FULLEST EXTENT PERMITTED BY LAW, LESSEE SHALL RELEASE, INDEMNIFY, DEFEND
AND HOLD HARMLESS LESSOR, BNSF, BURLINGTON NORTHERN SANTA FE LLC AND EACH OF THE
AFOREMENTIONED PARTIES' AFFILIATED COMPANIES, PARTNERS, SUCCESSORS, ASSIGNS, LEGAL
REPRESENTATIVES, OFFICERS, DIRECTORS, SHAREHOLDERS, EMPLOYEES AND AGENTS (COLLECTIVELY,
Indefinite Term Lease – Land MRL Form 405 February 2015 Page 7
"INDEMNITEES") FOR, FROM AND AGAINST ANY AND ALL CLAIMS, LIABILITIES, FINES, PENALTIES, COSTS,
DAMAGES, LOSSES, LIENS, CAUSES OF ACTION, SUITS, DEMANDS, JUDGMENTS AND EXPENSES (INCLUDING,
WITHOUT LIMITATION, COURT COSTS, ATTORNEYS' FEES AND COSTS OF INVESTIGATION, REMOVAL AND
REMEDIATION AND GOVERNMENTAL OVERSIGHT COSTS) ENVIRONMENTAL OR OTHERWISE (COLLECTIVELY
"LIABILITIES") OF ANY NATURE, KIND OR DESCRIPTION OF ANY PERSON OR ENTITY DIRECTLY OR INDIRECTLY
ARISING OUT OF, RESULTING FROM OR RELATED TO (IN WHOLE OR IN PART):
(i) THIS LEASE, INCLUDING, WITHOUT LIMITATION, ITS ENVIRONMENTAL PROVISIONS;
(ii) ANY RIGHTS OR INTERESTS GRANTED PURSUANT TO THIS LEASE;
(iii) LESSEE'S OCCUPATION AND USE OF THE PROPERTY;
(iv) THE ENVIRONMENTAL CONDITION AND STATUS OF THE PROPERTY CAUSED BY,
AGGRAVATED BY, OR CONTRIBUTED IN WHOLE OR IN PART, BY LESSEE; OR
(v) ANY ACT OR OMISSION OF LESSEE OR LESSEE'S OFFICERS, AGENTS, INVITEES,
EMPLOYEES, OR CONTRACTORS, OR ANYONE DIRECTLY OR INDIRECTLY EMPLOYED
BY ANY OF THEM, OR ANYONE THEY CONTROL OR EXERCISE CONTROL OVER,
EVEN IF SUCH LIABILITIES ARISE FROM OR ARE ATTRIBUTED TO ANY NEGLIGENCE OF ANY INDEMNITEE. THE
ONLY LIABILITIES WITH RESPECT TO WHICH LESSEE'S OBLIGATION TO INDEMNIFY THE INDEMNITEES DOES
NOT APPLY ARE LIABILITIES (1) TO THE EXTENT PROXIMATELY CAUSED BY THE GROSS NEGLIGENCE OR
WILLFUL MISCONDUCT OF AN INDEMNITEE OR (2) WHOLLY CAUSED BY THE SOLE NEGLIGENCE OF AN
INDEMNITEE.
B. FURTHER, TO THE FULLEST EXTENT PERMITTED BY LAW, NOTWITHSTANDING THE LIMITATION
IN SECTION 14A, LESSEE SHALL NOW AND FOREVER WAIVE ANY AND ALL CLAIMS, REGARDLESS OF
WHETHER SUCH CLAIMS ARE BASED ON STRICT LIABILITY, NEGLIGENCE OR OTHERWISE, THAT AN
INDEMNITEE IS AN "OWNER", "OPERATOR", "ARRANGER", OR "TRANSPORTER" WITH RESPECT TO THE
PROPERTY FOR THE PURPOSES OF CERCLA OR OTHER ENVIRONMENTAL LAWS. LESSEE WILL INDEMNIFY,
DEFEND AND HOLD THE INDEMNITEES HARMLESS FROM ANY AND ALL SUCH CLAIMS REGARDLESS OF THE
NEGLIGENCE OF THE INDEMNITEES. LESSEE FURTHER AGREES THAT THE USE OF THE PROPERTY AS
CONTEMPLATED BY THIS LEASE SHALL NOT IN ANY WAY SUBJECT ANY INDEMNITEE TO CLAIMS THAT ANY
INDEMNITEE IS OTHER THAN A COMMON CARRIER FOR PURPOSES OF ENVIRONMENTAL LAWS AND
EXPRESSLY AGREES TO INDEMNIFY, DEFEND, AND HOLD THE INDEMNITEES HARMLESS FOR ANY AND ALL
SUCH CLAIMS. IN NO EVENT SHALL LESSOR BE RESPONSIBLE FOR THE ENVIRONMENTAL CONDITION OF THE
PROPERTY.
C. TO THE FULLEST EXTENT PERMITTED BY LAW, LESSEE FURTHER AGREES, REGARDLESS OF
ANY NEGLIGENCE OR ALLEGED NEGLIGENCE OF ANY INDEMNITEE, TO INDEMNIFY, AND HOLD HARMLESS
THE INDEMNITEES AGAINST AND ASSUME THE DEFENSE OF ANY LIABILITIES ASSERTED AGAINST OR
SUFFERED BY ANY INDEMNITEE UNDER OR RELATED TO THE FEDERAL EMPLOYERS’ LIABILITY ACT ("FELA")
WHENEVER EMPLOYEES OF LESSEE OR ANY OF ITS AGENTS, INVITEES, OR CONTRACTORS CLAIM OR
ALLEGE THAT THEY ARE EMPLOYEES OF ANY INDEMNITEE OR OTHERWISE. THIS INDEMNITY SHALL ALSO
EXTEND, ON THE SAME BASIS, TO FELA CLAIMS BASED ON ACTUAL OR ALLEGED VIOLATIONS OF ANY
FEDERAL, STATE OR LOCAL LAWS OR REGULATIONS, INCLUDING BUT NOT LIMITED TO THE SAFETY
APPLIANCE ACT, THE BOILER INSPECTION ACT, THE OCCUPATIONAL HEALTH AND SAFETY ACT, THE
RESOURCE CONSERVATION AND RECOVERY ACT, AND ANY SIMILAR STATE OR FEDERAL STATUTE.
D. Upon written notice from any Indemnitee, Lessee agrees to assume the defense of any lawsuit or other
proceeding brought against such Indemnitee by any entity, relating to any matter covered by this Lease for which Lessee
has an obligation to assume liability for and/or save and hold harmless such Indemnitee. Lessee shall pay all costs incident
to such defense, including, but not limited to, attorneys' fees, investigators' fees, litigation and appeal expenses, settlement
payments, and amounts paid in satisfaction of judgments.
Section 14. Equal Protection.
It is agreed that the provisions of Sections 10, 12, and 13 are for the equal protection of other railroad companies,
including, without limitation, the National Railroad Passenger Corporation (Amtrak), permitted to use Lessor's property, and
such railroad companies shall be deemed to be included as Indemnitees under Sections 10, 12, and 13.
Indefinite Term Lease – Land MRL Form 405 February 2015 Page 8
Section 15. Assignment and Sublease.
A. Lessee shall not (i) assign or otherwise transfer this Lease or any interest herein, or (ii) sublet the Property
or any part thereof, without, in each instance, obtaining the prior written consent of Lessor and BNSF, which consent may
be withheld in the sole and absolute discretion of Lessor and BNSF. For purposes of this Section 15, in the event that there
are aggregate transfers or other changes in the ownership interests of Lessee resulting in a change of more than 20% of
the ownership interests as held on the date hereof, a transfer shall be deemed to have occurred hereunder. Any person or
legal representative of Lessee, to whom Lessee's interest under this Lease passes by operation of law, or otherwise, will
be bound by the provisions of this Lease.
B. Any assignment, lease, sublease or transfer made pursuant to Section 15(A) may be made only if, and
shall not be effective until, the assignee cures all outstanding defaults of Lessee hereunder and executes, acknowledges
and delivers to Lessor an agreement, in form and substance satisfactory to Lessor, whereby the assignee assumes the
obligations and performance of this Lease and agrees to be personally bound by and upon all of the covenants, agreements,
terms, provisions and conditions hereof on the part of Lessee to be performed or observed. Lessee covenants that,
notwithstanding any assignment or transfer, whether or not in violation of the provisions of this Lease, and notwithstanding
the acceptance of Rent by Lessor from an assignee or transferee or any other party, Lessee will remain fully and primarily
liable along with the assignee for the payment of the Rent due and to become due under this Lease and for the performance
of all of the covenants, agreements, terms, provisions, and conditions of this Lease on the part of Lessee to be performed
or observed.
Section 16. Liens.
Lessee shall promptly pay, discharge and release of record any and all liens, charges and orders arising out of any
construction, alterations or repairs, suffered or permitted to be done by Lessee on the Property. Lessor is hereby authorized
to post any notices or take any other action upon or with respect to the Property that is or may be permitted by law to prevent
the attachment of any such liens to the Property; provided, however, that failure of Lessor to take any such action shall not
relieve Lessee of any obligation or liability under this Section 16 or any other Section of this Lease.
Section 17. Insurance.
Lessee shall, at its sole cost and expense, procure and maintain during the life of this Lease the following insurance
coverage:
A. All risks property insurance covering all of Lessee’s property including property in the care, custody or
control of Lessee. Coverage shall include the following:
¨ Issued on a replacement cost basis.
¨ Shall provide that in respect of the interests of Lessor and BNSF the insurance shall not be
invalidated by any action or inaction of Lessee or any other person and shall insure the respective
interests of Lessor and BNSF as they appear, regardless of any breach or violation of any warranty,
declaration or condition contained in such policies by Lessee or any other person.
¨ Include a standard loss payable endorsement naming Lessor and BNSF as the loss payee as its
interests may appear.
¨ Include a waiver of subrogation in favor of Lessor and BNSF.
B. Commercial General Liability Insurance. This insurance shall contain broad form contractual liability with a
combined single limit of a minimum of $1,000,000 each occurrence and an aggregate limit of at least $2,000,000. Coverage
must be purchased on a post 1998 ISO occurrence form or equivalent and include coverage for, but not limited to, the
following:
¨ Bodily Injury and Property Damage
¨ Personal Injury and Advertising Injury
¨ Fire legal liability
¨ Products and completed operations
This policy shall also contain the following endorsements, which shall be indicated on the certificate of insurance:
¨ The employee and workers compensation related exclusions in the above policy shall not apply
with respect to claims related to railroad employees.
Indefinite Term Lease – Land MRL Form 405 February 2015 Page 9
¨ The definition of insured contract shall be amended to remove any exclusion or other limitation for
any work being done within 50 feet of railroad property.
¨ Any exclusions related to the explosion, collapse and underground hazards shall be removed.
No other endorsements limiting coverage may be included on the policy.
C. Business Automobile Insurance. This insurance shall contain a combined single limit of at least $1,000,000
per occurrence, and include coverage for, but not limited to the following:
¨ Bodily injury and property damage
¨ Any and all vehicles owned, used or hired
D. Workers Compensation and Employers Liability insurance including coverage for, but not limited to:
¨ Lessee’s statutory liability under the worker’s compensation laws of the state(s) in which the work
is to be performed. If optional under State law, the insurance must cover all employees anyway.
¨ Employers’ Liability (Part B) with limits of at least $500,000 each accident, $500,000 by disease
policy limit, $500,000 by disease each employee.
Other Requirements:
All policies (applying to coverage listed above) shall contain no exclusion for punitive damages and certificates of
insurance shall reflect that no exclusion exists.
Lessee agrees to waive its right of recovery against Lessor and BNSF for all claims and suits against Lessor and
BNSF. In addition, its insurers, through the terms of the policy or through policy endorsement, waive their right of subrogation
against the Lessor and BNSF for all claims and suits. The certificate of insurance must reflect the waiver of subrogation
endorsement. Lessee further waives its right of recovery, and its insurers also waive their right of subrogation against the
Lessor and BNSF for loss of its owned or leased property or property under Lessee's care, custody or control.
Lessee’s insurance policies through policy endorsement must include wording that states that the policy shall be
primary and non-contributing with respect to any insurance carried by any Indemnitee. The certificate of insurance must
reflect that the above wording is included in evidenced policies.
All policy(ies) required above (excluding Workers Compensation and if applicable, Railroad Protective) shall include
a severability of interest endorsement and shall name the Lessor and BNSF as additional insureds with respect to work
performed under this Lease. Severability of interest and naming the Lessor and BNSF as additional insureds shall be
indicated on the certificate of insurance.
Lessee is not allowed to self-insure without the prior written consent of Lessor and BNSF. If granted by Lessor and
BNSF, any deductible, self-insured retention or other financial responsibility for claims shall be covered directly by Lessee
in lieu of insurance. Any and all liabilities of the Lessor and BNSF that would otherwise, in accordance with the provisions
of this Lease, be covered by Lessee‘s insurance will be covered as if Lessee elected not to include a deductible, self-insured
retention or other financial responsibility for claims.
Prior to accessing the Property, Lessee shall furnish to Lessor an acceptable certificate(s) of insurance including
an original signature of the authorized representative evidencing the required coverage, endorsements, and amendments
and referencing the contract audit/folder number if available. The policy(ies) shall contain a provision that obligates the
insurance company(ies) issuing such policy(ies) to notify Lessor in writing at least 30 days prior to any cancellation, non-
renewal, substitution or material alteration. This cancellation provision shall be indicated on the certificate of insurance.
Upon request from Lessor, a certified duplicate original of any required policy shall be furnished.
Any insurance policy shall be written by a reputable insurance company acceptable to Lessor with a current Best’s
Guide Rating of A- and Class VII or better, and authorized to do business in the state(s) in which the Property is located.
Lessee represents that this Lease has been thoroughly reviewed by Lessee’s insurance agent(s)/broker(s), who
have been instructed by Lessee to procure the insurance coverage required by this Lease. Allocated Loss Expense shall
be in addition to all policy limits for coverages referenced above.
Indefinite Term Lease – Land MRL Form 405 February 2015 Page 10
Not more frequently than once every five years, Lessor and BNSF may reasonably modify the required insurance
coverage to reflect then-current risk management practices in the railroad industry and underwriting practices in the
insurance industry.
If any portion of the operation is to be contracted by Lessee, Lessee shall require that the contractor shall provide
and maintain insurance coverages as set forth herein, naming Lessor and BNSF as additional insureds, and shall require
that the contractor shall release, defend and indemnify the Lessor and BNSF to the same extent and under the same terms
and conditions as Lessee is required to release, defend and indemnify the Lessor and BNSF herein.
Failure to provide evidence as required by this section shall entitle, but not require, Lessor to terminate this Lease
immediately. Acceptance of a certificate that does not comply with this section shall not operate as a waiver of Lessee's
obligations hereunder.
The fact that insurance (including, without limitation, self-insurance) is obtained by Lessee shall not be deemed to
release or diminish the liability of Lessee including, without limitation, liability under the indemnity provisions of this Lease.
Damages recoverable by the Lessor and BNSF shall not be limited by the amount of the required insurance coverage.
For purposes of this section, BNSF shall mean "Burlington Northern Santa Fe LLC", "BNSF Railway Company" and
the subsidiaries, successors, assigns and affiliates of each.
Section 18. Water Rights and Use of Wells.
This Lease does not grant, convey or transfer any right to the use of water under any water right owned or claimed
by the BNSF which may be appurtenant to the Property. All right, title, and interest in and to such water is expressly reserved
unto BNSF, and the right to use same or any part thereof may be obtained only by the prior written consent of the BNSF.
Lessee shall not use, install or permit to be installed or used any wells on the Property without the prior written consent of
BNSF.
Section 19. Default.
A. An "Event of Default" by Lessee shall have occurred hereunder if any of the following shall occur:
(i) if Lessee violates any safety provision contained in this Lease;
(ii) if Lessee fails to pay Rent or any other monetary payment hereunder when due or fails to perform
any other obligations under this Lease and such failure continues thirty (30) days after written notice from Lessor
to Lessee of Lessee's failure to make such payment or perform such obligations;
(iii) if a decree or order of a court having jurisdiction over the Property for the appointment of a receiver,
liquidator, sequestrator, trustee, custodian or other officer having similar powers over Lessee or over all or a
substantial part of the property of Lessee shall be entered; or if Lessee becomes insolvent or makes a transfer in
fraud of creditors; or an interim receiver, trustee or other custodian of Lessee or of all or a substantial part of the
property of Lessee shall be appointed or a warrant of attachment, execution, or similar process against any
substantial part of the property of Lessee shall be issued and any such event shall not be stayed, dismissed, bonded
or discharged within thirty (30) days after entry, appointment or issuance;
(iv) if the Property is abandoned or vacated by Lessee.
B. If an Event of Default occurs as provided above, Lessor may, at its option, (i) terminate this Lease by serving
five (5) days notice in writing upon Lessee, in which event Lessee shall immediately surrender possession of the
Property to Lessor, without prejudice to any claim for arrears of Rent or breach of covenant, (ii) proceed by
appropriate judicial proceedings, either at law or in equity, to enforce performance or observance by Lessee of the
applicable provisions of this Lease or to recover damages for a breach thereof, (iii) cure the default by making any
such payment or performing any such obligation, as applicable, at Lessee's sole expense, without waiving or
releasing Lessee from any obligation, or (iv) enter into and upon the Property or any part thereof and repossess the
same without terminating the Lease and, without obligations to do so relet the Property or any part thereof as the
agent of Lessee and in such event, Lessee shall be immediately liable to Lessor for all costs and expenses of such
reletting, the cost of any alterations and repairs deemed necessary by Lessor to effect such reletting and the full
amount, if any, by which the rentals reserved in this Lease for the period of such reletting exceeds the amounts
agreed to be paid as Rent for the Property for the period of reletting. The foregoing rights and remedies given to
Indefinite Term Lease – Land MRL Form 405 February 2015 Page 11
Lessor are and shall be deemed to be cumulative and the exercise of any of them shall not be deemed to be an
election excluding the exercise by Lessor at any time of a different or inconsistent remedy. If, on account of breach
or default by Lessee of any of Lessee's obligations hereunder, it shall become necessary for the Lessor to employ
an attorney to enforce or defend any of Lessor's rights or remedies hereunder, then, in any such event, any
reasonable amount incurred by Lessor for attorneys' fees shall be paid by Lessee. Any waiver by Lessor of any
default or defaults of this Lease or any delay of Lessor in enforcing any remedy set forth herein shall not constitute
a waiver of the right to pursue any remedy at a later date or terminate this Lease for any subsequent default or
defaults, nor shall any such waiver in any way affect Lessor's ability to enforce any Section of this Lease. The
remedies set forth in this Section 19 shall be in addition to, and not in limitation of, any other remedies that Lessor
may have at law or in equity, and the applicable statutory period for the enforcement of a remedy will not commence
until Lessor has actual knowledge of a breach or default.
C. In the event of a default by Lessee, Lessor shall be allowed to recover one hundred percent (100%) of its
costs or outstanding amounts owed, including any amount received by a collection agency in connection with
pursuing any unpaid portion of rent or other amounts due under this Lease on Lessor’s behalf.
Section 20. Termination.
Upon the termination of Lessee's tenancy under this Lease in any manner herein provided, Lessee shall relinquish
possession of the Property and shall remove any Lessee Improvements, and restore the Property to substantially the state
and environmental condition in which it was prior to Lessee's use ("Restoration Obligations"). If Lessee shall fail within
thirty (30) days after the date of such termination of its tenancy to complete the Restoration Obligations, then Lessor may,
at its election (i) either remove the Lessee Improvements or otherwise restore the Property, and in such event Lessee shall,
within thirty (30) days after receipt of bill therefor, reimburse Lessor for cost incurred, (ii) upon written notice to Lessee may
take and hold any Lessee Improvements and personal property as its sole property, without payment or obligation to Lessee
therefor, or (iii) specifically enforce Lessee's obligation to restore and/or pursue any remedy at law or in equity against
Lessee for failure to so restore. Further, in the event Lessor has consented to Lessee Improvements remaining on the
Property following termination, Lessee shall, upon request by Lessor, provide a Bill of Sale in a form acceptable to Lessor
conveying such Lessee Improvements to Lessor.
Section 21. Survival of Obligations.
Notwithstanding any expiration or other termination of this Lease, all of Lessee's indemnification obligations and
any other obligations that have accrued but have not been satisfied under this Lease prior to the termination date shall
survive such termination.
Section 22. Holding Over.
If Lessee fails to surrender the Property to Lessor upon any termination of this Lease, and Lessor and BNSF do not
consent in writing to Lessee's holding over, then such holding over will be deemed a month-to-month tenancy. Lessee's
holdover will be subject to all provisions of this Lease.
Section 23. Multiple Party Lessee.
In the event that Lessee consists of two or more parties, all the covenants and agreements of Lessee herein
contained shall be the joint and several covenants and agreements of such parties.
Section 24. Damage or Destruction.
If at any time during the term of this Lease, the Property is damaged or destroyed by fire or other casualty, then
Lessor may terminate this Lease or repair and reconstruct the Property to substantially the same condition in which the
Property existed immediately prior to the damage or destruction, except that Lessor is not required to repair or reconstruct
any Lessee Improvements, personal property, furniture, trade fixtures, or office equipment located on the Property and
removable by Lessee under the provisions of this Lease.
Section 25. Eminent Domain.
If any part of the Property is taken by eminent domain, Lessor may either terminate this Lease or continue the Lease
in effect. If Lessor elects to continue the Lease, Rent will be reduced in proportion to the area of the Property taken by
eminent domain, and Lessor shall repair any damage to the Property resulting from the taking. All sums awarded or agreed
Indefinite Term Lease – Land MRL Form 405 February 2015 Page 12
upon between Lessor and the condemning authority for the taking of the interest of Lessor or Lessee, whether as damages
or as compensation, will be the property of Lessor; without prejudice, however, to claims of Lessee against the condemning
authority for moving costs and the unamortized cost of leasehold improvements paid for by Lessee taken by the condemning
authority. If this Lease is terminated under this Section 25, Rent will be payable up to the date that possession is taken by
the condemning authority, and Lessor shall refund to Lessee any prepaid unaccrued Rent less any sum then owing by
Lessee to Lessor.
Section 26. Representations.
Neither Lessor nor Lessor's agents have made any representations or promises with respect to the Property except
as herein expressly set forth.
Section 27. Signs.
No signs are to be placed on the Property without the prior written approval of Lessor of the size, design, and
content thereof.
Section 28. Consents and Approvals.
Whenever in this Lease Lessor's or BNSF's consent or approval is required, such consent or approval shall be in
their sole and absolute discretion. If Lessor and BNSF delay or refuse such consent or approval, such consent or approval
shall be deemed denied, and Lessee in no event will be entitled to make, nor will Lessee make, any claim, and Lessee
hereby waives any claim, for money damages (nor will Lessee claim any money damages by way of set-off counterclaim or
defense) based upon any claim or assertion by Lessee that Lessor or BNSF unreasonably withheld or unreasonably delayed
its consent or approval.
Section 29. Captions.
The captions are inserted only as a matter of convenience and for reference, and in no way define, limit or describe
the scope of this Lease nor the intent of any provision thereof.
Section 30. Public Record.
It is understood and agreed that this Lease shall not be placed of public record.
Section 31. Governing Law.
All questions concerning the interpretation or application of provisions of this Lease shall be decided according to
the substantive laws of the state in which the Property is located.
Section 32. No Waiver.
One or more waivers of any covenant, term, or condition of this Lease by Lessor or BNSF shall not be construed
as a waiver of a subsequent breach of the same covenant, term, or condition. The consent or approval by Lessor or BNSF
to or of any act by Lessee requiring such consent or approval shall not be deemed to waive or render unnecessary consent
to or approval of any subsequent similar act.
Section 33. Binding Effect.
All provisions contained in this Lease shall be binding upon, inure to the benefit of, and be enforceable by the
respective successors and assigns of Lessor and Lessee to the same extent as if each such successor and assign was
named a party to this Lease.
Section 34. Force Majeure.
Except as may be elsewhere specifically provided in this Lease, if either party is delayed or hindered in, or prevented
from the performance required under this Lease (except for payment of monetary obligations) by reason of earthquakes,
landslides, strikes, lockouts, labor troubles, failure of power, riots, insurrection, war, acts of God or other reason of the like
nature not the fault of the party delayed in performance of its obligation, such party is excused from such performance for
the period of delay. The period for the performance of any such act will then be extended for the period of such delay.
Indefinite Term Lease – Land MRL Form 405 February 2015 Page 13
Section 35. Entire Agreement/Modification.
This Lease is the full and complete agreement between Lessor and Lessee with respect to all matters relating to
lease of the Property and supersedes any and all other agreements between the parties hereto relating to lease of the
Property. If this Lease is a reissue of an existing agreement held by Lessee, it shall supersede and cancel the previous
lease or leases, without prejudice to any liability accrued prior to cancellation. This Lease may be modified only by a written
agreement signed by Lessor and Lessee.
Section 36. Notices.
Any notice or documents required or permitted to be given hereunder by one party to the other shall be in writing
and the same shall be given or shall be deemed to have been served and given if (i) delivered in person to the address
herein above or hereinafter set forth for the party to whom the notice is given, (ii) placed in the United States mail,
certified - return receipt requested, addressed to such party at the address herein above or hereinafter set forth, or (iii)
deposited into the custody of any reputable overnight carrier for next day delivery, addressed to such party at the address
herein above or hereinafter set forth. Any notice mailed as above shall be effective upon its deposit into the custody of the
U. S. Postal Service or such reputable overnight carrier, as applicable; all other notices shall be effective upon receipt. All
Rent and other payments due to Lessor hereunder shall also be made as provided in Section 3(A) above, and delivery of
such rental and other payments shall only be effective upon actual receipt by Lessor. From time to time either party may
designate another address or telecopy number within the 48 contiguous states of the United States of America for all
purposes of this Lease by giving the other party not less than fifteen (15) days' advance written notice of such change of
address in accordance with the provisions hereof.
If to Lessee, at the address shown above.
If to Lessor, at the address shown above.
If to BNSF:
BNSF Railway Company
Jones Lange LaSalle Brokerage, Inc., Its Attorney in Fact
Attn JLL Rail Practice Group
2650 Lou Menk Drive – MOB 1
Ft. Worth, TX 76131
Section 37. Counterparts.
This Agreement may be executed in multiple counterparts, each of which shall, for all purposes, be deemed an
original but which together shall constitute one and the same instrument, and the signature pages from any counterpart
may be appended to any other counterpart to assemble fully executed documents, and counterparts of this Agreement may
also be exchanged via electronic facsimile machines and any electronic facsimile of any party's signature shall be deemed
to be an original signature for all purposes.
Section 38. Relationship.
Notwithstanding anything else herein to the contrary, neither party hereto shall be construed or held, by virtue of
this Lease, to be the agent, partner, joint venturer, or associate of the other party hereto, it being expressly understood and
agreed that the relationship between the parties hereto is and at all times during the term of this Lease, shall remain that of
Lessor and Lessee.
Section 39. Severability.
If any clause or provision of this Lease is illegal, invalid or unenforceable under present or future laws effective
during the term of this Lease, then and in that event, it is the intention of the parties hereto that the remainder of this Lease
shall not be affected thereby, and it is also the intention of the parties to this Lease that in lieu of each clause or provision
of this Lease that is illegal, invalid or unenforceable, there be added, as a part of this Lease, a clause or provision as similar
in terms to such illegal, invalid or unenforceable clause or provision as may be possible and be legal, valid and enforceable.
Section 40. Transferability; Release of Lessor.
Indefinite Term Lease – Land MRL Form 405 February 2015 Page 14
Lessor shall have the right to transfer and assign, in whole or in part, all of its rights and obligations under this Lease
and in the Property, and upon such transfer, Lessor shall be released from any further obligations hereunder, and Lessee
agrees to look solely to the successor in interest of Lessor for the performance of such obligations.
Section 41. Tax Waiver.
Lessee waives all rights pursuant to all Laws to protest appraised values or receive notice of reappraisal regarding
the Property (including Lessor's personalty), irrespective of whether Lessor contests the same. However, if the Property is
separately assessed by the applicable taxing authority as a result of this Lease, the Lessee may, at its own cost and upon
written consent of Lessor, contest the assessed value of the Property.
Section 42. Attorneys' Fees.
If any action at law or in equity is necessary to enforce or interpret the terms of this Lease, the prevailing party shall
be entitled to reasonable attorneys' fees, costs, and necessary disbursements in addition to any relief to which it may be
entitled.
Executed by the parties to be effective as of the Effective Date set forth above.
LESSOR
Montana Rail Link, Inc., a Montana corporation
By:
Joe Gentri, Manager Real Estate
LESSEE
Simkins-Hallin, Inc. a Montana corporation
By:
Printed Name:
Title:
BNSF's execution in the space provided below evidences BNSF's consent to this Lease. This Lease is not valid and shall
have no force and effect without BNSF's signature.
BNSF
BNSF Railway Company
By:
Indefinite Term Lease – Land Exhibit B MRL Form February 2015 Page 16
EXHIBIT "B"
WORK LETTER AGREEMENT
THIS WORK LETTER AGREEMENT (the "Agreement") supplements that certain Indefinite Term Lease For Land
("Lease") dated ___________, _____ by and between MONTANA RAIL LINK, INC., a Montana corporation ("Lessor"),
and ______________________, a(n) __________________ ("Lessee"). In the event of any conflict between the provisions
of this Agreement and the provisions of the Lease, the provisions of this Agreement shall control. Unless the context
otherwise requires, capitalized terms not defined herein shall have the meaning assigned to such terms in the Lease.
In the event Lessee uses one or more general contractors or subcontractors ("Contractor(s)") for any
improvements, alterations, build out, finish out, or other similar work on the Property ("Work"), Lessee agrees to and accepts
the following:
1. Prior to performing any Work, Lessee shall obtain Lessor's and BNSF's approval of each Contractor and
any Work to be performed by such Contractor shall be performed pursuant to a written contract between Lessee and the
Contractor ("Work Contract") approved in advance by Lessor and BNSF.
2. Prior to commencing any Work, Lessee shall submit for Lessor's and BNSF's review and approval Lessee's
plans, specifications and/or drawings for such Work (collectively, "Plans") in accordance with the procedure set forth in the
Lease.
3. All Work must be performed at Lessee's sole cost and expense and in accordance with the Plans which
have previously been approved by Lessor and BNSF.
4. Lessee shall cause its Contractors to meet all insurance and indemnification requirements required of
Lessee under the Lease and shall obtain indemnification and insurance provisions from its Contractors in favor of Lessor
and BNSF and in the same form as set forth in the Lease.
5. Prior to the commencement of the Work, all required local building, fire, health and other departments must
approve all Plans requiring approval by local building codes. In addition, the Work shall be performed, installed and/or
constructed in accordance with all applicable federal, state and local laws, codes, ordinances, rules and regulations,
including without limitation, the Americans With Disabilities Act of 1990, 42 U.S.C.A. 12101 et seq.
6. Lessee shall be responsible for obtaining all municipal and other governmental licenses or permits for the
Work with copies furnished to Lessor and BNSF prior to commencement of any construction.
7. Lessee shall furnish Lessor and BNSF, for Lessor's and BNSF's approval, a copy of its schedule of the
Work. Lessee shall perform the Work in accordance with the schedule approved by Lessor and BNSF, and any changes in
such schedule must be approved by Lessor and BNSF in writing in advance.
8. Notwithstanding the status of the completion of the Work, Lessee's obligation for payment of Rent and other
amounts due under the Lease shall commence on the Commencement Date provided in the Lease. Notwithstanding
anything herein to the contrary, Lessor and BNSF may, in Lessor's and BNSF's sole discretion, permit Lessee and Lessee's
Contractors to enter the Property prior to the Commencement Date in order to commence Work; provided, however, that
Lessee agrees that such early entry or occupation of the Property shall be governed by all of the terms and conditions of
the Lease and this Agreement (including the insurance and indemnity requirements therein), as such terms and conditions
are more specifically set forth in the Lease and this Agreement.
9. During construction, Lessor and BNSF reserves the right to inspect the Work at any time upon reasonable
notice to Lessee.
10. Lessee's Contractors shall keep the Property reasonably clean at all times during the performance of the
Work.
11. All Work must be performed in a good and workmanlike manner, free from defects in materials and
workmanship.
Indefinite Term Lease – Land MRL Form 405 February 2015 Page 17
12. If any materialman's, mechanic's, laborer's or any other liens for any work claimed to have been undertaken
for Lessee or at Lessee's request is filed against the Property, Lessee shall indemnify, defend and hold harmless Lessor
and BNSF from any such liens filed during the term of the Lease and shall, at Lessee's own expense, cause all such liens
to be removed within ten (10) days after written notice from Lessor or BNSF to Lessee of the filing thereof.
13. Lessee must obtain Lessor's and BNSF's reasonable approval that the Work has been completed in
substantial accordance with the approved plans and specifications. Lessor and BNSF shall receive copies of all Certificates
of Occupancy and as-built drawings (electrical, mechanical, fire and architectural) prior to approving the Work.
14 All guarantees and warranties provided by Lessee's Contractors shall be issued to Lessee and, for Work
which is or will at the termination of this Lease be Lessor's property, also to Lessor and BNSF.
IN WITNESS WHEREOF, the parties hereto have executed this Work Letter Agreement to be effective as of the
date first set forth above.
LESSOR:
Montana Rail Link, Inc., a Montana corporation
By:
Name:
Title:
LESSEE:
By:
Name:
Title:
BNSF's execution in the space provided below evidences BNSF's consent to this Work Letter Agreement. This Work Letter
Agreement is not valid and shall have no force and effect without BNSF's signature.
BNSF
BNSF Railway Company, a Delaware corporation
By:
Name:
Title:
7505+007510+007515+007520+007525+00400.2'
1267.9'115.0'85.3'PC: 7509+40.40PT: 7516+67.09ENGINEERING DEPARTMENT
PLAT SHOWING: LEASE AREA
FOR: SIMKINS-HALLIN
CITY COUNTY STATE
SUBDIVISION SCALE
DATE FILE
MP 142.2 Simkins-Hallin Lease.dwg
BOZEMAN
2ND
3/20/2023
GALLATIN MONTANA
1:2001427497+60NOTIFY ROADMASTER CHRIS SEYMOUR (406)
223-3237, AT LEAST FIVE (5) WORKING DAYS
BEFORE STARTING WORK ON RAILROAD
RIGHT-OF-WAY. A RAILROAD FLAGGER AT
PERMITTEE'S EXPENSE MAY BE REQUIRED.
NOTIFY SIGNAL SUPERVISOR NATHAN KLUCK
(406) 570-5993, AT LEAST FIVE (5) WORKING
DAYS BEFORE STARTING WORK ON RAILROAD
RIGHT-OF-WAY. A RAILROAD FLAGGER AT
PERMITTEE'S EXPENSE MAY BE REQUIRED.
TO SANDPOINT JCT.TO JONES JCT.
EXHIBIT "A"
RAILROAD RIGHT-OF-WAY
VERIFY SCALE!
LINE SHOULD BE ONE-INCH (1") ON PAPER
200'
U.S. SPRINT COMMUNICATIONS COMPANY
HAS INSTALLED AN UNDERGROUND FIBER
OPTIC CABLE ON MONTANA RAIL LINK
RIGHT OF WAY IN THIS AREA. LOCATION
OF THIS CABLE AND AUTHORITY TO
CROSS IT MUST BE OBTAINED FROM
U.S. SPRINT AT 1-800-521-0579.
NUMEROUS OTHER UTILITY COMPANIES
HAVE UNDERGROUND AND ABOVE
GROUND FACILITIES WITHIN THE RAILROAD
RIGHT OF WAY IN THIS AREA. IT IS THE
PERMITTEE'S RESPONSIBILITY TO RESOLVE
ANY CONFLICTS WITH THE EXISTING
UTILITY OCCUPATIONS.
DESCRIPTION: A SITE CONTAINING 4.82 ACRES,
MORE OR LESS, FOR LUMBER STORAGE AREA
SITE LEASE, AS SHOWN HEREON SHADED.
STA 7505+40.2
MP 142+ 780.2'
ORIGINAL TRACK
LOCATION
RAILROAD RIGHT-OF-WAY
MAIN TRACK
LEASE AREA:
200'
DC=1°31'04"
L=75.6'
Δ=1°8'49.73"
DC=1°32'03"
L=171.6'
Δ=2°37'54.72"
NOTE: CURVES ARE
CHORD DEFINITION
26'
STA 7524+65.4
MP 142+ 2,705.4'
SIDING TRACKRUNAROUND TRACK