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TRACK LEASE AGREEMENT 101696
THIS AGREEMENT, made and entered into this 16th day of October, 1996,
by and between DAKOTA, MINNESOTA & EASTERN RAILROAD CORPORATION, hereinafter
called the "Company", and South Dakota Soybean Processors, hereinafter called
the "Industry".
WITNESSETH:
WHEREAS: The Company, in consideration of the agreements of the Lessee
herein contained, hereby leases unto the Lessee, for a term of 12 months 1000
feet of track and land occupied thereby (hereinafter collectively called "Said
Track") situated at Volga, SD, shown by yellow coloring on the drawing dated
October 16, 1996, attached hereto and made a part hereof, said track extends
between points A and B on attached print.
WHEREAS: The Company is willing that said track shall be maintained and
operated upon the terms and conditions herein set forth:
THEREFORE, in consideration of the premises, it is hereby agreed
between the parties hereto as follows:
1. Lessee agrees to pay the Company, as rent the sum of Two
Thousand Five Hundred Dollars and no/100 ($2500) which shall
be billed by the Company in advance on the first effective
date of this Agreement and on the same date of every year
thereafter, subject to revision at anniversary date.
2. The Company shall bear the cost and expense of all maintenance
of that part of said track maintenance shall include any and
all repairs, additions, betterments and the removal of snow,
ice, vegetation or any other obstructions therefrom. The
necessity of such maintenance shall be determined by the
Company. Also, the Company shall determine who (being Company
and/or contract forces) shall do said maintenance.
3. It is agreed by the Lessee, the said track shall be used and
occupied as a site for storage, loading, and/or unloading of
cars containing soybeans, soybean meal and oil with the use of
whatever devices necessary, and the Lessee forever indemnifies
the Company against and agrees to save it harmless from any
and all liability whatsoever for loss and damage to any
property whatsoever, and injury to or death of any person or
persons whomsoever, including all cost and expenses incident
thereto, however, arising from or in connection with the
existence, construction maintenance, repair, renewal, or
reconstruction, operation, use or removal of equipment or any
unit thereof, or any defect therein or failure thereof, or the
failure of the Lessee or its' employees or agents to abide by
or comply with any of the provisions of this Lease.
4. All cars delivered to Lessee on said track shall be deemed to
have been delivered as soon as the car or cars have been
placed on said track and detached from the
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engine or train by which it is moved. The Lessee agrees to
assume all risk, responsibility and liability for costs or
rerailing or loss or damage to said cars, from any cause
whatsoever, from the time of delivery of said cars until said
cars are attached to engine or train by which they are moved.
5. Upon the expiration of any termination hereof, Lessee shall
surrender the use and possession of said track to Company in
as good condition as it is on the date hereof.
6. This Lease shall be binding upon the heirs, executors,
administrators, successors and assigns of the parties hereto.
7. The Industry shall not place, or permit to be placed, or to
remain, any equipment, material, structure, pole or other
obstruction, or any excavation within 8.5 feet on straight
track, or 9.5 feet on curved track, laterally of the center,
or within 23 feet vertically from the top of the rail of said
track.
8. The Company shall have the right to use said track, or any
extension thereof, for any and all purposes which do not
unreasonably interfere with service to the Industry.
9. The Industry shall be solely liable for all the consequences
of its sole negligence; the Company shall be solely liable for
all the consequences of its sole negligence; and both parties
shall share equally all of the consequences of their joint or
concurrent negligence.
10. The Company shall have the right at its' option, to terminate
this agreement discontinuing operation over said track, by
giving thirty (30) days notice in writing to the Industry.
11. The Industry shall not assign this Agreement, or any interest
therein, without the written consent of the Company.
12. The Industry agrees to move all railroad cars with on track
equipment only.
13. Addendum:
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed this 17 day of September, 1996.
DAKOTA, MINNESOTA & EASTERN
RAILROAD CORPORATION
ATTEST: /s/ Tim By: /s/ Douglas G. Deberg
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Office Engineer Chief Engineer
SOUTH DAKOTA SOYBEAN PROCESSORS
ATTEST: /s/ Connie Kelly By: /s/ Rodney Christianson
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CFO CEO
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[Attached Drawing and Print Not Reproduced.]