SHORT LIMITED DURATION TENANCY AGREEMENT

between

and

2018 // DRAFT

D:\DOCS\2018-04-29\0D9F68845F9E5C41336AAFBF6673B157.DOC 30/05/18 SHORT LIMITED DURATION TENANCY AGREEMENT between

(1) , residing at (who and whose successors and assignees whomsoever are hereinafter referred to as the "Landlord") and

(2) , residing at and their permitted assignees and successors whomsoever (“Tenant”)

IT IS CONTRACTED and AGREED between the Landlord and the Tenant as follows:-

The Landlord in consideration of the rent and other benefits and with and under the reservations, conditions and others hereafter specified, HEREBY LETS to the Tenant but expressly excluding successors and sub-tenants whether legal or conventional (other than those permitted by Sections 20 or 21 of the Agricultural Holdings (Scotland) Act 2003 (“2003 Act”) ALL and WHOLE Insert conveyanci ng description being the Leased Holding coloured in Insert colour on the plan annexed and signed as relative hereto (“Leased Holding"), together with any internal roads and any existing buildings and erections thereon and service infrastructure installed therein and thereon and (which Leased Holding, together with the fixed equipment as listed in the schedule annexed and signed as relative hereto (“Fixed Equipment”) are hereinafter referred to as the “Leased Holding");

And in the Lease, the singular includes the plural and the masculine includes all other genders unless the context otherwise requires.

1 Duration

Notwithstanding the date or dates hereof, the Leased Holding is let from Insert date of entry ("Date of Entry") to Insert date of termination (“Date of Termination”), a term of Insert duration years inclusive (“Period of Let”) and the Lease is by virtue of Section 4(1) of the 2003 Act, a short limited duration tenancy as defined by Section 4 of the 2003 Act under declaration that where the Lease is silent on any matter, or where the terms hereof conflict with the same, the provisions of the 2003 Act relative to Limited Duration Tenancies are applied to and imported into the Lease, in particular those relating to fixed equipment specified in Section 16 of the 2003 Act.

2 Rent

2.1 The initial yearly rent payable by the Tenant will be £Insert rent per annum, exclusive of VAT, from the Date of Entry until Insert date initial rent ends. The yearly rent will be payable in Enter arrears or advance on Insert date and Insert date in each year, the first payment being due on the Date of Entry. The Landlord will not at any time be barred from claiming damages from the Tenant for failure to implement the Tenant's obligations under the Lease by reason of the fact that the rents may have been accepted by the Landlord. Except as he may be entitled to do so following an order made in his favour by the Scottish Land Court pursuant to Section 12 of the 2003 Act the Tenant shall not be entitled to withhold the payment of rent, or any part thereof when the same falls due, in respect of any question or difference between the Tenant and the Landlord or for any other reason.

2.2 In the event of the Tenant failing to make any payment of rent or any such other sum on the date upon which the same becomes due the Tenant shall be bound to pay interest thereon to the Landlord at a rate four percentage points above the base rate of the Clydesdale Bank in force from time to time from the date upon which payment becomes due as aforesaid until payment thereof and such interest shall be recoverable as if the same were rent in arrears and due under this Lease. The Tenant shall not be entitled in any circumstances to withhold any payment of rent or any other sum payable to the Landlord, unless with the express authorisation of the Land Court.

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3 Purpose

The Leased Holding shall be used by the Tenant only as an agricultural holding as defined by Sections 1 and 85(1) of the 1991 Act and the Tenant shall not use the land or any dwellinghouse or building thereon for any non-agricultural purposes it being declared and agreed specifically that the Leased Holding is let for the purpose of 1.

4 Assignation and Sub-letting

The Lease is non assignable and the Tenant may not sub-let.

5 Reservations

The Landlord reserves all minerals insofar as belonging to them, a right to use all water in lochs, rivers, streams or springs in or traversing the Leased Holding, all timber on the Leased Holding, all game (including ground game), the power to resume the whole or any part of the Leased Holding in accordance with Section 17 of the 2003 Act, all rights of access to include pedestrian, vehicular or equestrian over the Leased Holding including access for inspection of the Leased Holding, all existing servitudes and wayleaves and power to grant new ones.

6 Fixed Equipment

6.1 The Tenant accepts any buildings and other Fixed Equipment as being in a thorough state of repair as at the Date of Entry and sufficient to enable the Tenant, who guarantees that it is skilled in husbandry, to Insert purpose of lease on the Leased Holding;

6.2 The Tenant binds himself during the Period of Let to keep the Fixed Equipment which is and any other building or fixed equipment which may be provided by the Tenant or the Landlord under any obligation contained in these presents or otherwise in a thorough state of repair, and at the expiry or sooner termination of the Lease to leave the same and any additional or substituted buildings, roads, bridges, hedges, dykes, walls and fences, gates, gate posts, embankments, drains, ditches, watercourses and water pipes, and fittings and all other fixed equipment on the Leased Holding in the like good state and condition, natural decay and ordinary fair wear and tear alone being excepted;

6.3 The Tenant will not alter or add to any building or fixed equipment or erect new buildings or fixed equipment or carry out any capital improvement on the Leased Holding unless with the prior written consent of the Landlord, which consent shall not be unreasonably withheld or delayed.

7 Obligations at Entry

At the Tenant’s entry to the Leased Holding the Tenant shall be bound and obliged to take over from the Landlord or the outgoing tenant the whole (if any) lime and residual and unexhausted manurial values and fertilisers within the Leased Holding and all feeding stuff, crops in store and growing crops and that in each case without any payment being made declaring that at the Tenant’s waygoing from the Leased Holding the Landlord or the incoming tenant shall be bound or taken bound to take over the same at the valuation.

8 Tenant’s Undertakings

8.1 Rates

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The Tenant will pay all rates, taxes and other charges including water rates, usually payable by a tenant or occupier and any Value Added Tax payable in respect of any payment payable by the Tenant hereunder.

8.2 Cultivation and Cross Compliance

The Tenant shall be bound to cultivate and manage the Leased Holding according to the rules of good husbandry as defined in the Sixth Schedule to the Agriculture (Scotland) Act 1948 as amended by Section 18(4) of the 2003 Act so as not to impoverish or deteriorate the Leased Holding and to keep and leave the same clean and in good heart and in particular and specifically the Tenant undertakes to comply with any European Union, United Kingdom or Scottish primary and secondary legislation concerning any cross-compliance requirements affecting the Leased Holding (including Statutory Management Requirements and the requirement to maintain the Leased Holding in good environmental and agricultural condition) which forms part of or refers to the Single Farm Payment Entitlement Scheme as the same may be amended from time to time during the term of this lease by any relevant European Union, United Kingdom or Scottish primary and/or secondary legislation.

8.3 Permanent Pasture

The permanent pasture and (if any) rough grazing included on the Leased Holding shall not be broken up or ploughed without the written permission of the Landlord.

8.4 [Stock

The Tenant is obliged throughout the Period of Let to have on the Leased Holding a sufficient stock which shall be bona fide the Tenant’s own property and specifically declaring that the Tenant shall not take in livestock of any third party or in which a third party has an interest without the previous written consent of the Landlord but with the exception of the over- wintering of sheep for which the consent of the Landlord shall not be required; declaring that if so required by the Landlord, by notice in writing, to do so, the Tenant shall forthwith produce to the Landlord full details of the stock carried on the Leased Holding, together with evidence of the ownership thereof.] DRAFTING NOTE – ONLY USE IF STOCK ON THE HOLDING.

8.5 Consumption of Produce

The Tenant is obliged not to sell or remove from the Leased Holdings but to consume thereon the whole straw, hay, silage, turnips and other fodder grown thereon (except potatoes) unless provision has been made by the Tenant for the return to the Leased Holding of the full equivalent manurial value of all such produce sold off or removed from the Leased Holding in the form of the application to the Leased Holding of manures or fertilisers having such value first approved in writing by the Landlord.

8.6 Cutting Weeds

The Tenant shall be bound to cut down or spray at least twice in every year all rag weeds, docks, thistles, nettles and all other weeds as may reasonably be required and also to cut or otherwise destroy the bracken when required to do so by the Landlord and to take all steps to prevent the spread of whin.

8.7 Ground Vermin

The Tenant shall be bound to keep down all rats, moles, rabbits and other vermin on the Leased Holding (including the spreading of mole hills) and that subject always to the provisions of the Ground Game Act 1880.

8.8 Tenant’s Failure to Control Vermin or Weeds

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In the event of the Tenant failing to implement the foregoing obligations as to vermin, weeds, bracken and others the Landlord reserves the right to implement the same and to recover the cost of doing so from the Tenant.

8.9 Disease to Stock or Crop

The Tenant shall be bound to notify the Landlord in writing forthwith of any outbreak or suspected outbreak of any notifiable disease of crops or stock on the Leased Holding and to take all reasonable precautions to prevent the introduction or spread of eelworm and other soil borne diseases and pests on the Leased Holding and in particular not to grow on the same land during any four consecutive years more than one crop or potatoes or other crop which is susceptible to eelworm.

8.10 Burning

The Tenant shall not carry out any burning of straw or stubble upon the Leased Holding except with the express prior written consent of the Landlord on each occasion and then only upon such conditions as shall be laid down by the Landlord in terms of such consent and to take all necessary steps to prevent fire from spreading to adjoining hedges, plantations, fences or any other part of the Leased Holding and to reinstate or pay the full cost of reinstating any damage caused to the property of the Landlord or any other third party by the spread of fire.

8.11 Turf

The Tenant shall not cut any turf on or remove any top soil from the Leased Holding except with the previous consent in writing of the Landlord.

8.12 Water Supply

The Tenant shall not dam natural water supplies or bore to obtain supplies for the purposes of irrigating grassland or crops without the previous consent in writing of the Landlord.

8.13 Application of Chemicals

The Tenant shall use all chemical and other sprays so as to comply with the Control of Substances Hazardous to Health Regulations (No.437 of 1999) and any other regulations, directives or codes of practice which may from time to time be in force and as the same may be amended from time to time and the Tenant shall at all times use same with reasonable care to ensure that hedges, trees, crops, rivers, streams and gardens on or in the vicinity of the Leased Holding are not adversely affected and so far as possible shall apply chemicals or other preparations to the Leased Holding of a type and in a manner least likely to cause harm to human beings, game, birds or other wild creatures declaring that the Tenant shall forthwith make good or pay compensation for any damage caused by any breach of this condition to the property of the Landlord or any other party.

8.14 Pollution

The Tenant shall not cause or knowingly permit the pollution of the environment whether by reason of the discharge of any substance or the emission of gas or of any noise levels or otherwise on the Leased Holding resulting in such pollution; declaring that the Tenant shall free, relieve and indemnify the Landlord from all (if any) claims, actions, proceedings, costs, expenses, fines, penalties, demands or the like arising out of or relating to the pollution by the Tenant of the environment as a result of the Tenant’s occupation or activities on the Leased Holding.

8.15 Soil Analysis

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At any time during the Period of Let, if so required by the Landlord in writing a proper analysis of the soil on the Leased Holding may be taken by the Landlord at the Landlord’s expense.

8.16 Returns

The Tenant shall be bound at all times and upon demand to produce to the Landlord true and accurate records of cropping of the Leased Holding including copies of IACS Forms (or the equivalent) submitted to the Scottish Government Rural Payments and Inspections Directorate for the past 3 years and true accounts of all straw, hay, silage, turnips and other fodder sold off or removed from the Leased Holding and to keep and to produce any time at the request of the Landlord a record of what provision is or has been made for the return to the Lease Holding of the full equivalent manurial value of all such produce sold off or removed from the Leased Holding and of what provision has been made to protect the Leased Holding from injury or deterioration. The Tenant shall preserve copies of all Agricultural Returns made by him to SGRPID and shall exhibit the same to the Landlord within 14 days of being required to do so by notice in writing to that effect given by the Landlord, whether such notice is given during or after the termination of the tenancy.

8.17 Tipping

The Tenant will indemnify the Landlord from all claims and demands howsoever arising in connection with any tipping which may occur on the Leased Holding by the Tenant (such tipping being hereby prohibited by the Landlord) and no warranty whatsoever is given by the Landlord to the Tenant that any tipping on the Leased Holding which may have occurred was permitted under planning or any other relevant regulatory framework.

8.18 Nuisance

The Tenant shall not do or suffer to be done on the Leased Holding anything which may be or become a nuisance, annoyance or danger to the Landlord or the owners, occupiers or users of any adjoining land or roads and shall indemnify the Landlord against any claims by third parties in respect of any breach of this condition.

8.19 Statutes

The Tenant shall be bound and obliged to comply in all respects with and obtain all necessary licences required by and shall have the benefit of all European Union Regulations and Directives and all United Kingdom and Scottish laws, statutes, statutory instruments, regulations, bye-laws, orders or directions by any United Kingdom government, Scottish Government, local authority or other public body, any codes of practice issued by a United Kingdom Minister or United Kingdom Government Department or any Scottish Minister or Scottish Government Department or by any other authorised body issuing same which may apply or at any time may be applied to the Leased Holding or to the water supply thereto or therefrom or to the husbandry of the Leased Holding declaring that where such directives, laws or others as are hereinbefore mentioned conflict with the provisions hereof the former shall prevail and the Tenant shall not do or permit to be done on the Leased Holding any act or thing whereby the Landlord may become liable to any penalty and shall indemnify the Landlord from and against all (if any) claims, actions, proceedings, costs, expenses, fines, penalties, demands or the like arising out of or in consequence of any breach of this condition.

9 Obligations at Waygoing

With regard to the Tenant’s waygoing from the Leased Holding it is hereby provided and agreed as follows:-

9.1 that the Tenant shall leave to the incomer or incoming tenant the first and second years’ grasses on the Leased Holding declaring that the Tenant shall be entitled to receive compensation for such grasses, at valuation, but only in the event that the same have at the time of the Tenant’s waygoing been ungrazed, otherwise no compensation shall be payable;

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9.2 that the incomer shall be bound to take over from the Tenant the Tenant’s last or waygoing crops of straw, hay, silage, turnips and other fodder (other than potatoes) grown solely for consumption on the Leased Holding (which the Tenant shall be obliged to leave on the Leased Holding); and

9.3 that the Tenant shall not graze the grass land intended for hay and/or silage after 1 March in the year of the Tenant’s waygoing in the event of the waygoing being Whitsunday.

10 Quotas and Single Farm Payment Entitlements

The Tenant agrees that this lease does not confer any rights to any quotas or entitlements to receive subsidies including any payments under the Single Farm Payment Entitlement Scheme in terms of any present or future European Union Regulations, United Kingdom or Scottish primary or secondary legislation but the Landlord and the Tenant are agreed that the Leased Holding is at the disposal of the Tenant in terms of the Single Farm Payment Entitlement Scheme for the period of the let.

11 Notices

11.1 Without prejudice to any duty imposed on the Tenant by any statute the Tenant shall as soon as reasonably practicable following the receipt of any Notice, Order, Direction or other matter affecting or likely to affect the Leased Holding produce the same to the Landlord and shall permit the Landlord or his Agents to make a copy thereof.

11.2 All Notices (including Notices to Quit), intimations, claims, requests, and consents to be made or given by either party under the Lease or under statute shall be in writing and served in the manner provided by Section 85 of the Agricultural Holdings (Scotland) Act 1991, and any notice, intimation or claim which the Landlord may require to serve on the Tenant shall be deemed to have been validly served if it has been served in the manner foresaid.

12 Irritancy

In the event of the Tenant during this lease (a) becoming apparently insolvent or sequestrated in terms of the Bankruptcy (Scotland) Act 1985 as amended or granting a trust deed for creditors or otherwise or if any deed or diligence is performed against the Tenant or his goods including his stock or crop on the Leased Holding and remains undischarged after a period of 7 days or (b) assigning this Lease except as may be permitted under Sections 20 or 21 of the 2003 Act or otherwise sub-letting the Lease Holding or any part of it without the consent of the Landlord in writing or (c) allowing any installment of rent to remain unpaid after it has become due or (d) failing to have a sufficient stock on the Leased Holding which shall be bona fide the Tenant’s own property or (e) failing to cultivate and manage the Leased Holding according to the rules of good husbandry as hereinbefore defined and in accordance with the provisions hereof including maintenance of the Leased Holding in good environmental and agricultural condition or (f) using any part of the Leased Holding for a purpose other than agricultural (unless with the consent of the Landlord) or except in accordance with the provisions hereof or (g) failing to fulfill or breaching any of the remaining obligations incumbent upon the Tenant in terms of this Lease then and in any of these events and without prejudice to any other remedy competent to the Landlord it shall be in the power of the Landlord (provided always that in the case of an alleged breach which is capable of being remedied the Landlord has first served written notice on the Tenant requiring the Tenant to remedy the alleged breach within such period as is specified in the said written notice and the Tenant has failed to remedy the alleged breach within the said specified period) by written intimation addressed to the Tenant forthwith to put an end to this Lease and immediately to resume possession of the Leased Holding without prejudice however to the Landlord’s claims for past, due and current rents or for any dilapidation, deterioration or damage of or to the Leased Holding or any other claim competent to the Landlord howsoever arising; declaring that subject always to Section 12(8) and Section 18(6) and (7) of the 2003 Act, the Landlord shall not be prevented from

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exercising the right of irritancy hereby created or any other rights to which they may be entitled either in terms hereof or by any statute to terminate this Lease by reason of the fact that they are or may be in breach of any obligations incumbent upon them in terms of this Lease or otherwise.

13 Record

As soon as reasonably practicable after the Date of Entry a record of the condition of the Fixed Equipment on and of the cultivation of the Leased Holding (including soil analysis) shall be made up as provided for in respect of 1991 Act tenancies by in accordance with the provisions of Section 61 of the 2003 Act and at the joint expense of the Landlord and the Tenant.

14 Insurance

14.1 The Landlord undertakes that in the event of damage to any building on the Leased Holding other than a building belonging exclusively to the Tenant the Landlord shall reinstate or replace the said building if its reinstatement or replacement is required for the fulfilment of the Landlord’s responsibilities to manage the Leased Holding in accordance with the rules of good estate management or to enable the Tenant to maintain efficient production as aforesaid and the Landlord further undertakes to insure in his own name to their full value all buildings on the Leased Holding against all normal insurable risks (other than buildings belonging exclusively to the Tenant which the Landlord shall be under no obligation to insure unless by specific agreement in writing with the Tenant); but the Tenant shall have no claim against the Landlord on account of lack of buildings accommodation resulting from such insurable risks and will not be entitled to withhold rent or to any abatement of rent during the reinstatement of a building as aforesaid following damage.

14.2 The Tenant shall not do or omit to do any act by which any policy of insurance of the Landlord shall be invalidated and shall indemnify the Landlord against any losses, charges, costs or expenses incurred by any breach by the Tenant of any condition of this lease.

14.3 The Tenant shall be bound in the event of destruction by fire of harvested crops (if any) grown on the Leased Holding for consumption thereon to return to the Leased Holding the full equivalent manurial value of the crops so destroyed insofar as the return thereof is required for the fulfilment of the Tenant’s responsibility to farm in accordance with the rules of good husbandry and the Tenant shall be bound to insure to their full value all live and dead stock (if any) on the Leased Holding including especially all such harvested crops as aforesaid against damage by fire with an insurance company to be approved in writing by the Landlord (which approval shall not be unreasonably withheld or delayed) and to pay the premia therefore and to exhibit a current policy of insurance of the said items; the Tenant shall further insure his stock against all commonly insurable diseases or such of them as the Landlord may agree.

15 Entry for Repairs

The Tenant shall allow the Landlord, his employees or contractors to carry out any repairs which the Tenant is liable to execute under this lease in all cases in which the Tenant has not executed the same within 2 calendar months of receiving written notice from the Landlord so to do and of the Landlord to carry out such repairs in case of the Tenant’s failure to do so and in such cases to pay to the Landlord on demand the costs of such repairs so carried out by the Landlord declaring however that this clause shall in no way relieve the Tenant from liability to carry out the said repairs.

16 Vacation

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The Tenant binds and obliges himself to flit and remove himself, his servants, goods and effects and to leave the Leased Holding void and redd to the Landlord or incoming tenant at the expiry or sooner termination of this Lease.

17 Dispute Resolution

Every case which may require a settlement between the parties hereto or the Tenant and the incoming tenant (and failing agreement between them) under this Lease (including without prejudice to the foregoing generality any claim for compensation, any valuation, any question of any increase or decrease in rent arising from any provision hereof or any dispute or difference arising between the parties and whether arising at the commencement of or during the Period of Let or after the date termination) shall be determined in accordance with Part 7 of the 2003 Act.

18 Expenses

Each party shall bear their own expenses in connection with the preparation and adjustment of these presents. The Tenant shall pay any Stamp Duty Land Tax payable in respect of the tenancy hereby created.

19 Registration

The parties consent to registration hereof for preservation and execution:

IN WITNESS WHEREOF

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SCHEDULE OF FIXED EQUIPMENT

This is the schedule referred to in the foregoing Short Limited Duration Tenancy Agreement between and dated Insert date.

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