Tindilo Payam.
If 250,000 hectares of suitable land is not found in Tindilo Payam and the plantation is expanded into neighboring payams, the Community Support Program has to be shared with other specified payams, based on their part of the 250,000 hectares.
After the expiry of the agreed upon 99 years, the government and Tree Farms Sudan may renew the terms of the lease on new terms basis of mutual agreement
Financial obligations - community or commodity funds
For the purposes of holding and the use of the property Tree Farms Sudan shall pay the Tindilo local community, the sum of US$ 12,500 only per annum. The annual rent shall be increased by 2% every year through the lifespan of the lease to cover for inflation.
Tree Farms Sudan will provide new buildings, facilities and equipment. The operational costs of the facilities shall be covered by the government.
The government shall facilitate exemptions or state taxes, fees, and other relevant local rates imposed on machinery, equipment, plants, chemicals, fertilizers and other materials, supplied for the development of the property. This has to be done through the Ministry of Finance.
For the purposes of holding and the use of the property Tree Farms Sudan shall pay the Tindilo local community, the sum of US$ 12,500 only per annum. The community shall be the end of the year present proper accounting showing how the money has been spent, before new payment is done. Tree Farms Sudan is paying the annual amount within 30 June the year after. The annual rent shall be increased by 2% every year through the lifespan of the lease to cover for inflation.
During the first 25 years of the contract, Tree Farms Sudan shall support as its contribution to the community, basic, social services, including: (i) health; (ii) education: (iii) clean water; (iv) agricultural extension service; (v) community housing services; and (vi) road maintenance.
As part of the Community Support Program, enclosed as an Appendix to the contract, Tree Farms Sudan will support the Tindilo Payam Community by building education infrastructure, dispensary infrastructure, village office/community house infrastructure, clean water access boreholes, providing materials such as seeds, fertilizers and facilitating coordination for training as to agriculture and forestry, and by supporting sport activities.
Tree Farms Sudan will implement the support during 3 different time periods, 0-5 years, 5-10 years and 10-25 years. The commitment periods start on the date of the final approval and legal registration of the Land Lease Agreement.
From year 26 onwards the full responsibility is with the government to provide the normal infrastructure and roads, and the running costs of these, for the local community.
Tree Farms Sudan shall provide professional skills, expertise knowledge and capacity building of the local community. Tree Farms Sudan shall provide training to the community.
The government shall facilitate through the local authorities and the concerned technical ministries/institutions all the necessary permits, licenses, concessions and guarantees required for the development of the property
All disputes, controversies or differences of any kind which may arise between the government and Tree Farms Sudan in connection with or arising from this contract shall in the first place be amicably settled by and between the government and Tree Farms Sudan. If the government and Tree Farms Sudan fail to amicably resolve such disputes, controversies or differences, they shall finally be settled by arbitration under the laws of the government. Arbitration shall take place outside Southern Sudan, preferably Uganda. The award of such arbitration body shall be find and binding on the government and Tree Farms Sudan.
Tree Farms Sudan has the right at any time during the lease period, to sell out and/or transfer the whole or part of the plantation to new owner(s). Any assignment, cession or transfer of any right or obligation arising under this contract shall be made mutual consent of the government and Tree Farms Sudan.
The government reserves the right to terminate the lease should: (i) Tree Farms Sudan be declared bankrupt and unable to conduct its business, which termination shall have immediate effect without further judicial intervention; and (ii) Tree Farms Sudan fail to provide the support to the community social service projects/forestry projects as agreed upon
Either the government or Tree Farms Sudan shall not be liable for forfeiture of its performance security, liquidated damages of termination for default, if and to the extent that its delay in performance or failure to perform its obligation under this contract are the results of an event of force majeure.
"Force majeure" means act of God, fire, explosions, flood, lightning, act of terror, war rebellion, void, sabotage or strikes or similar labor disputes or event or circumstances outside the reasonable control of the affected party. As soon as any event or circumstance of force majeure takes place, the affected party shall give notice thereof to the other party giving full details including but not limited to the nature of the event or circumstance, the date of its occurrence, the anticipated duration and the likely effect of the force majeure events or circumstances.
The government shall, with the assistance from the technical departments, monitor, review and carry out evaluation of the progress of work. Tree Farms Sudan shall furnish the government, the technical ministry and the local authorities with the relevant project documents and annual progress reports.