The agreement can be renewed for additional years as mutually agreed by the parties. The agreement shall be renewed on the same terms and conditions. If either party wishes to renew the agreement, it shall inform the other party at least 12 months before the expiration of the term.
Ruchi Agri is obliged to take good care of the leased land and the natural resources on it, with particular obligations to (a) conserve tree plantations that have not been cleared for earth works, (b) apply appropriate work methods to prevent soil erosion in "slopping" areas, and (c) observe and implement all legislation regarding natural resource conservation
The Government undertakes to provide special investment privileges such as exemptions from taxation, import duties of capital goods, and repatriation of capital and profits granted under the investment laws of Ethiopia
There shall be a 4-year grace period for land rent, where the rent during this period will be prorated annually over the remaining years, commencing from the date of execution of the agreement. After that time, the annual payment amount shall be birr 2,775,000 (or birr 111 per hectare). The total payment amount of the agreement shall be birr 69,375,000. The Government reserves the right to revise the lease payment rate after 10 years of the last price fixation, as the need may arise, in consultation with Ruchi Agri. However, any increase shall not exceed 20% of the existing rate.
Ruchi Agri has the right to build infrastructure such as dams, water boreholes, power houses, irrigation system, roads, bridges, offices, residential buildings, fuel/power supply stations/outlets, health/hospitals/dispensaries and education facilities at its discretion upon consultation and submission of permit request with the Ministry of Agriculture and Rural Development, subject to the type and size of the investment project.
Upon the expiry or termination of the agreement or revocation of the investment license, Ruchi Agri shall remove assets installed on the leased land and hand over the leased land to the Government within 1 year. However, where the agreement is terminated upon expiry of the term or for one of the reasons in article 9, the Government has the priority right to purchase properties over the land in negotiation with Ruchi Agri.
The Ministry of Agriculture and Rural Development has an obligation to arrange access and use of facilities of the Government and Regional State Research centers for soil testing and mapping purposes, for a fee
The Government shall ensure that Ruchi Agri shall, during the period of the lease, enjoy peaceful and trouble free possession of the premises and shall be provided adequate security, free of cost, for carrying out its activities, against any riot, disturbance or other turbulent time other than force majeure, as and when requested by Ruchi Agri. The Government shall protect the right of Ruchi Agri to the peaceful possession, use and quiet enjoyment of the leased area.
Ruchi Agri should take control of the leased land within 30 days of the execution of the agreement by settling the required down payment. Ruchi Agri is expected to start to develop the land within 6 months from the date of execution of the agreement, or from the date that it receives final clearance from the Government, whichever is later. Ruchi Agri shall develop 10% of the leased land within the 1 year, and the entire plot of leased land within 4 years from the date of execution of the agreement, or from the date that it receives final clearance from the Government, whichever is later.
Upon entering into this agreement, Ruchi Agri shall submit an advance action plan regarding the use of the leased rural land, along with the agreement, to the Ministry of Agriculture and Rural Development. Ruchi Agri shall not make any unauthorized use of the leased land beyond the purpose of soya bean farming and rotational crops, or the scope as permitted under article 3 of the agreement, without the express written consent of the Ministry of Agriculture and Rural Development
In the event of a dispute, both parties will do their utmost to resolve the dispute amicably and to their mutual satisfaction through negotiation. If the dispute has not been settled within 6 months of request for amicable settlement, the dispute may be submitted to the competent Ethiopian court. Or, if the parties fail to agree on the above dispute settlement procedure, the dispute may be referred to the International Center for Settlement of Investment Dispute under the rule governing additional facilitates for the administration of the proceedings by the Secretariat of the Center.
Unless 75% of the land is developed, Ruchi Agri has no right to transfer the land or properties developed on the land to any other company or individual. Upon developing 75% of the land, Ruchi Agri can transfer the land or properties developed on the land to any other company or individual, but only with the prior permit of the Ministry of Agriculture and Rural Development.
The agreement may be terminated for (1) expiry of the term, (2) failure by the Government to deliver the land to Ruchi Agri for reasons other than force majeure, (3) failure of the Government to fulfill its obligations under the agreement within 6 months of receiving written notice from Ruchi Agri, (4) failure of Ruchi Agri to settle annual rental and relevant tax payments for 2 consecutive years, (5) failure by Ruchi Agri to perform its obligations under the agreement within 6 months of receiving notice from the Government, (6) termination by the Government on justified good cause after 6 months' prior written notice to Ruchi Agri, and (7) termination by Ruchi Agri upon justified good cause after 6 months' written notice to the Government. The Government has the right to restore any land which is not developed with 6 months' advance notice and after Ruchi Agri has not cured the failure within 1 year. The Government shall issue 6 months' advance notice prior to termination of the agreement on the grounds of (1) failure to develop the land within the time limits set by the agreement, (2) if there is any damage to the natural resources, or (3) non-performance of due payment of lease charge. If the issue is not addressed, the Government may extend the time period for such compliance or terminate the contract in accordance with the terms of the agreement. The Ministry of Agriculture and Rural Development shall issue 6 months' written notice prior to termination of the agreement on the grounds of failure to develop the land within the time limits set by the agreement. If the issue is not addressed, the Ministry of Agriculture and Rural Development may either extend the time period for compliance or terminate the agreement.
If the agreement is terminated by Ruchi Agri for failure of the Government to fulfill its obligations or for termination by the Government on justified good cause, the Government shall pay to Ruchi Agri the value of improvements made by Ruchi Agri on the land at the market price after setting off any dues on account of rentals or taxes
Ruchi Agri shall provide correct data and investment activity reports upon request by the Government. The Government has the right to monitor and establish the fact that Ruchi Agri is discharging and accomplishing its obligations diligently. This monitoring must be done in a manner that does not cause any hindrances to the work and activities of Ruchi Agri.