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HomeMy WebLinkAbout07-115 Resolution No. 07-115 RESOLUTION AUTHORIZING EXECUTION OF AN ILLINOIS CASH FARM LEASE AGREEMENT (Elgin Regional Park Property) BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN,ILLINOIS,that Olufemi Folarin, City Manager, and Dolonna Mecum, City Clerk, be and are hereby respectively authorized and directed to execute a written Illinois Cash Farm Lease agreement with Sherri DeRaedt for the premises commonly known as the Elgin Regional Park-Pollnow farm consisting of 224 acres,Elgin,Illinois, a copy of which is attached hereto and made a part hereof by reference. s/Ed Schock Ed Schock, Mayor Presented: May 9, 2007 Adopted: May 9, 2007 Omnibus Vote: Yeas: 7 Nays: 0 Attest: s/Dolonna Mecum Dolonna Mecum, City Clerk Illinois Cash Farm Lease TO USe Phis lease form: Complete two identical copies-one for the Lessor(Landowner)and one for the Lessee(Tenant).Cross out anyprovisions that are not to become apart of the contract and add any additional provisions that are desired.If preparing the lease manually,use ink or typewriter: however,the web-based lease form can be filled in on-line before printing. This lease form is available on the farmdoc website at <http://www.farmdoc.uiuc.edu/legallfarm_lease arms_abs.html>.Additional leasing information can be found in the Leasing Fact Sheets prepared by University oflllinois Farm Business Management Educators located at<http://www.farmdoc.uiuc.edu/manage/leasing_fact_sheets.html>. Note.A lease creates and alters legal rights;thus,Landowners and Tenants may want to discuss specific lease provisions with their respective legal advisors. Date and names of parties.This lease is entered into on May 1,2007,between: Lessor(s)(Insert Landowner's exact name):City of Elgin,Illinois,Whose mailing address is 150 Dexter Court,Elgin,IL 60120, and Lessee(s)(Insert Tenant's exact name):Sherri DeRaedt, whose mailing address is I ON841 Tower Road,Hampshire,11,60140, and whose Social Security Number or Employer Identification Number(if Tenant is an entity other than an individual)is 329-50-6467. The parties to this lease agree to the following provisions. Section 1. Description of Rented Land and Length of Tenure A. Description of Land. The Landowner(Lessor)rents and leases to the Tenant(Lessee),to occupy and to use for agricultural purposes only,the following real estate located in the County of Kane and the State of Illinois,and described as follows: Elgin Regional Park, commonly known as the Pollnow farm and consisting of approximately 224 acres,together with all improvements thereon belonging to the Lessor,except B. Length of tenure. The term of this lease shall be from May 1, 2007, to December 1,2007,and the Lessee shall surrender possession at the end of this term or at the end of any extension thereof. Extensions must be in writing and attached to this lease,and both parties agree that failure to execute an extension at least 2 months before the end of the current term shall be constructive notice of intent to allow the lease to expire. Section 2. Fixed Cash Rent (With Option for Indexing) Tenant agrees to pay Landowner annual fixed cash rent as identified below;however, if the"option for indexing"is also completed,the rent shall be adjusted as described in the option for the years following the first year. Fixed Rent:The annual cash rent shall be the sum of$36,512. This represents 224 acres of cropland at$163.00 per acre, plus NA acres of NA at$ NA per acre,plus NA acres of NA at$ NA per acre,plus NA Optionfor hidexinge After the fiFst year, the annual eash rent f,9F a pai4icular lease year shall be the Fixed Rent above,but adjusted annually aftef the first year as follows: , Extension Educator. The editors express appreciation to other University of Illinois Extension Farm Business Management and Marketing Educators for their assistance with this form. Section 2 (Alternate). Flexible Rent Using Option 1, 11, or 111 le: Strike either Section 2 or Section 2(Alternate). The cash rent can be flexible and change each crop year.Abase rent can be established and djusted has upon yield and/or price fluctuations. The factors to be used in adjusting the rent in Options 1 and 11 must be listed below. Base cash rent Base yield Base price Min.cash rent cash rent C (s) (per acre) (bu orton/acre) (per bu or per ton) (per acre) (per acre) The current price for the cu t year shall be the average price at close of day based on t/ee riod(s)and cations(s): Crop(s) Price source ay Month through Month at Da Month through Month at Day Month through Month at A. For each lease year,the per-acre base cash rent r each crop shall be adjusted at the c season by one of the following methods: OPTION l—FLEXING FOR PRICE ONLY Crop(s) Base rent x(Current price)Base pri ) =Rent acre' own =Adj.Rent for year $ x$ _$ =$ $ x$ _$ x =$ $ x$ _$ x =$ Total all crops =$ OPTION Il—FLEXING FOR PRICE AND YIELD Crop(s) Base rent x(Current price) x(Current yld' =Rendacre' x Acres grown =Adj.Rent for year Base Price) Base yld) $ x$ x$ _$ x =$ $ x$ x$ _$ x =$ $ x$ x$ _$ x =$ Total all crops =$ OPTION III—OTHER PROCEDURE TO BE USED B. Additional Rent for Inflexible items(com ete at beginning of lease period) Pasture $ Hay land $ Other inflexible cropland $ Timber,wasteland $ Farmstead $ TOTAL INFLEXI\REN $ C. TOTAL REN FOR YEAR: Sum the Flexible cropland rent(calculated from Part A, Option I. ent(from Part B). $NA If calcul d figure is less than"Min.cash rent"in'Basic Information,"use the set minimum.If calculated figure is more that"Max cash rent'in"B is Informal' n,"use the set maximum. 2 The rrent yield shall be the"farm"yield for the current lease year Page 2, Cash Lease— Farmdoc Form CL 0 1-0912 Section 3. Investments and Expenses A. The Landlord agrees to furnish the property and to pay the items of expense listed below: 1. The above-described farm,iced B. The Lessee agrees to furnish the property and to pay the items of expense listed below: . . ents to buildings and permanent fences 1. All the machinery, equipment, labor, fuel,and exeept as agreed te in 134 and amendments to power necessary to farm the premises properly. rh;� lease. 2. The hauling to the farm,except when otherwise 3. Skilled labor empleyed in making and r 5 agreed,of all material which the Lessor furnishes for making repairs and minor improvements,and ents and all labepfer-� buildings. the performing of labor,except skilled,required for such repairing and improving. 4. Taxes on land,improvements,and personal 3. All seed, inoculation,disease-treatment property owned by the Lessor. materials,and fertilizers,except that which the 5. Lessor agrees to furnish above. value, en t..e residenee and all buildings owned by the Lessor aiid used by the Lessee in ster-in-ge 4. The following described items and all other items of expense not furnished by the Lessor as equipment.or-housing grain, feed, liVestock and provided in A: 6. Ground Iifnestonei LeSSEW is tO fUMiSh —pereent or share of total , hauling and spreading. 7. A water-supply adequate for household use and animal units F livestoeli. 8. Other--items: — Section 4. Tenant's Duties in Operating Farm The Tenant further agrees to perform and carry out the stipulations below. (Strike out any not desired.) A. Activities required: t. To cultivate the farm faithfully and in a timely, the),may be put by the Lessof during the tefm o thorough,and businesslike manner. the lease or-dinaf�,wear-, loss by fire,e 2. To prevent noxious weeds from going to seed on said premises and to destroy the same and keep 7— the weeds and grass cut. shrubs, and to injui-y to the 3. To haul and spread all manure on appre 8. To keep the farmstead neat and orderly. fields at fifnes and in qu tits with q. To prevent all unnecessary waste,or loss,or damage to the property of the Lessor. ditches,4. To keep open tile drains,tile e io. To comply with pollution control and grass water-ways,and tefFaees in good r-e. environmental protection requirements as 5. To preserve established watercourses or ditches, required by local, state, and federal agencies,as and to refrain from any operation that will injure well as to implement soil erosion control them. practices to comply with the soil loss standards 6. To keep the building, fenees(inoluding hedges), mandated by local, state,and federal agencies. and other impr-evements in good fepair-a I]. To use prudence and care in transporting, endition as rho...,--when th_ T.nan r..l..� --., - -•-•• --- - �� • storing,handling,and applying all fertilizers, of in as good repair-and eendition as pesticides, herbicides, and other chemicals and Page 3, Cash Lease-Farmdoc Form C L 0 1-0912 similar substances;to read and follow label ground and clearly marked.No chemicals or instructions for the use of such materials in order chemical containers will be disposed of on the to avoid injury or damages to persons or property property. or both on the leased premises and adjoining 14. To generally follow Natural Resource areas;and to comply with state pesticide Conservation Service and Farm Service Agency training, licensing,storing,and usage. recommendations and to maintain all other 12. Any chemicals for weed or insect control or requirements necessary to qualify current and other use,when used, should be applied at levels future farm operators to participate in federal not to exceed the manufacturer's farm programs. recommendation for the soil types involved. The 15. Other: Tenant agrees to provide to the Lessor, annually, a written report indicating the product name, amount,date of application and location of application of all pesticides, fertilizers, and seed used on the farm. 13. No chemicals will be stored on the property for more than one year. When chemicals or petroleum products are stored on the farm,they will be only those planned to be used on the farm and they will be in closed,tight containers above B. Activities restricted.The Tenant further agrees,unless the written consent of the Lessor has been obtained: 1. Not to assign this lease to any person or persons 8. Not to erect or permit to be erected any or sublet any part of the premises herein leased. commercial advertising signs on the farm, other 2. Not to erect or permit to be erected any structure than seed variety signs. or building or to incur any expense to the Lessor 9. Not to enter into any agreement, contract,or for such purposes. other farming or business arrangement that alters 3. Not to add eleetr4eal wipfti , plumbing, or- rights in the Lessor's security interest,right of heating to an),building. (if oefisent as given-,ueh entry,default or possession. additions must tneet standafds and requirements 10. Not to permit,encourage,or invite other persons of power-and insur-apee companies.) to use any part or all of this property for any 4. Not to piew pefmanent___1 owiaild. purpose or activity not directly related to its use for agricultural production,except as specifically S. Not to allow any stock on any tillable noted here: exeept by annual agreement. 6. Not to burn or remove cornstalks,straw,or other crop residues grown upon the farm. 11. Other: 7. Not to cut live trees for sale purposes or personal uses. Section 5. Management and Business Procedures The Lessor and Tenant agree that they will observe the following provisions(Strike out any not desired.) A. General Cropping System. Except when mutually B. Insurance. For the term of the lease,Tenant shall decided otherwise,the land use and cropping shall be maintain insurance with a carrier acceptable to the approximately as follows: Landlord, insuring Tenant while performing on these 224 acres for rotated crops premises hereunder for the following types and in 0 acres in permanent pasture stated minimum amounts: 0 acres in non-grazed woodland Crop Insurance $531.45 per acre 0 acres in building and lots 0 acres in other Page 4,Cash Lease—Farmdoc Form CL 0 1-0912 Liability 3, Insurance: $1,000 per person $500,000 per occurrence Property Damage: $14,000 per occurrence Workers Compensation: As required by statute F. Land use in last year of lease. If,during the last six months of the lease term, or after notice to Tenant shall furnish Landlord with a Certificate of terminate has been given if this lease has become a Insurance and give notice of termination of coverage. year to year lease,the parties fail to agree on questions Tenant agrees that all applicable insurance policies name of land use, cropping system, fertilizer applications, or the Landlord as an additional insured any deviations from the lease provisions,then the C. Financial and prGduGtion reGords.The Tenan specific agreements in this lease shall prevail or, in the agFees to keep Ananeial and production r-eeefds of the absence of agreements in the lease,the Lessor shall fiH:m business afld to furnish an aRatial report to th-e decide and the Tenant agrees to abide by the Lessor's Lessor-,on stieh forms as the Lessor-may provide,on e decisions. The Lessor's decisions shall not contradict before any provisions in this lease or violate good farming D. Cash Rent Installments. The cash rent shall be procedures. paid each year in the following installments: G. Conservation. Both Lessor and Tenant affirm the Dollars or percent Date Due goals of minimizing soil erosion losses and preserving ofrent due the productivity of the land in ways that are consonant $18,256.00 May 1,2007 with their needs and desires for acceptable current $18,256.00 November 1,2007 returns to their individual inputs on the leased premises. To these ends they agree to implement as far as possible the best management practices recommended by the Natural Resource Conservation Service and to cooperate Balance Due with that agency's soil and water conservation programs. H. Tenant responsible for hired labor.The Tenant E. End Gf lease mumbursements.At the end of this shall be solely responsible for all employer obligations tease,the Lessor a Fees to,-o;,.,>.0 fse the Tenant: on hired labor with respect to safety requirements and social security and workers'compensation contributions, 1.Fe:the Tenant's remaining cost in limestone. The and the Lessor shall have no responsibilities therefore. Tenant's r-emaining oest shall be ealeula4ed by depr-ersiating the Tenant's net east at the rate-af I. Other management agreements: 2. For-the Tenant's cost of soluble 2854 and potall, /Y for-grain in the last yeaF of this lease minus the amoun of these plant food elements, Valued at the same Fates, eentained in the Tenant's shafe of these efaps-. Section 6. Default, Possession, Landlord's Lien, Right of Entry, Mineral Rights, Liability, Extent of Agreement The Lessor and Tenant agree to the following provisions.(Strike out any not desired.) A. Termination upon default. if either party fails to carry out condition as when they were entered upon by the Tenant,loss by substantially the terms of this lease in due and proper time,the lease fire,flood,or tornado,and ordinary wear excepted. If the Tenant may be terminated by the other party by serving a written notice fails to yield possession,the Tenant shall pay to the Lessor a penalty citing the instance(s)of default and specifying a termination date of of$_ per day or the statutory double rent.whichever is less, 30 days from the date of such notice.Settlement shall then be made for each day the Tenant remains in possession thereafter,in addition in accordance with the provisions of Clause B of this section.the to any damages caused by the Tenant to the Lessor's land or reimbursement agreements of Section 5,and any amendments to this improvements,and said payments shall not entitle the Tenant to any lease. interest of any kind or character in or on the premises. B. Yielding possession. The Tenant agrees at the expiration or C. Landlord's lien.The Landlord's lien provided by statute on termination of this lease to yield possession of the premises to the crops grown or growing,together with any other security Lessor without further demand or notice,in as good order and agreement(s)created by Tenant in favor of Landlord,shall be the security for the rent herein specified and for the faithful performance Page 5,Cash Lease—Farmdoc Form CL 0 1-0912 of the terms of the lease.The Tenant shall provide the Lessor with D. Landowner's right of entry.The Lessor reserves the right the names of persons to whom the Tenant intends to sell crops grown personally or by agents,employees,or assigns to enter upon the on these premises at least 30 days prior to the sale of such crops.A premises at any reasonable time to view them,to work or make lesser period may be allowed by mutual written agreement. Tenant repairs or improvements thereon,to care for and dispose of the consents to any filing required by law to perfect the statutory Lessor's share of crops,to develop mineral resources as provided in landlord's lien upon crops.If the Tenant fails to pay the rent due or Clause E below,or,after constructive notice has been given that the fails to keep any of the agreements of this lease,all costs and lease may not be extended,and following severance of crops,to attorney fees of the Lessor in enforcing collection or performance plow and prepare a seed bed,apply fertilizers,and any other shall be added to and become a part of the obligations payable by the operation necessary to good farming by the succeeding operator, Tenant. these operations not to interfere with the Tenant in carrying out the regular farming operations. E. Mineral rights.Nothing in this lease shall confer upon the Tenant any right to minerals underlying the land.Such mineral rights are hereby reserved by the Lessor together with the full right to enter upon the premises and to bore,search,excavate,work,and remove the minerals,to deposit excavated rubbish,to pass over the premises with vehicles,and to lay down and work any railroad track or tracks, tank,pipelines,power lines,and structures as may be necessary or convenient for the above purpose.The Lessor agrees to reimburse the Tenant for any actual damage the Tenant may suffer for crops destroyed by these activities and to release the Tenant from obligation to continue farming this property when development of mineral resources interferes materially with the Tenant's opportunity to make a satisfactory return. F. Landowner liability.The Tenant takes possession of the leased premises subject to the hazards of operating a farm,and assumes all risk of accidents personally as well as for family, employees,or agents in pursuance of farming operations,or in performing repairs on buildings,fences,tile,and other improvements. G. Binding on heirs,etc.The terms of this lease shall be binding on the heirs,executors,administrators,and assigns of both Lessor and Tenant in like manner as upon the original parties. Section 7. Additional Lease Provisions Regarding Section 6-E,Lessor agrees to reimbursement Tenant$700 per acre for any crop damage done by Lessor or its agents. Si es of a I ase: Landowner Date ® Landowner / / /07 Date gy AQent Date a L� p Tenant 'Rol / Date Tenant Date Page 6,Cash Lease—Farmdoc Form CL 01-0912 05/01/07 TUE 08:40 FAX 815 756 7886 FARM CREDIT 4002 Arfarm&eW&rows eAt the heart of a growing America. Crop Inhmmwe Office•1350 W.Prairie Drive-Sycamore.,11.60179-(815)787-4979-(A00)361-9751-Fax(815)756-7886 May 1, 2007 Sherri Deraedt- The crop insurance coverage that you have in Kane County is an 85%CRC policy for both corn and soybeans. The unit structure established is an enterprise unit and shows an approved yield history of 154 bushels per acre of corn. The soybeans have an approved yield history of 51 bushels per acre. The maximum guarantee per acre of corn is $531.45 and the maximum guarantee for soybeans is$350.70. The insurance company that holds this policy is Great American Insurance Company of Peoria, Illinois. Any further questions please contact me on my cell at 815-766-0683 or at the office 800- 361-9751. Thank you, Jason Johnson I"Farm Credit Services Crop Insurance Specialist 05/01/07 TUE 08:40 FAIL 615 758 7856 YAKK GNEUIT 1¢JUU3 05/0112007 Great American InsuranceCumpanies Multiple Peril Crop Insurance Pagc:IofI Peoria 1315 W.C:ominttee Drive DECLARATION OF COVERAGE riEtGARMt141GVN Peoria.IL 61615-1462 EFFECTIVE FOR THE 2007 CROP YEAR 1"Sm"CE GROUP Policy Number: 2007-IL-030-9125M INSURED: I SI IERRI DE-RAEDT Entity Type: Spousal/Marricd ION 971 TOWER RD Tax ID: 32¢50.6467 HAMPSHIRE-IL 60140-8404 ID Type: SSN Phone: (841)4645553 Authorized Representative: PGA: NOnc Spouse's Name: UEGERI DERAEDT Spouse's SSN: 33846.6008 POLICY INFORMATION FOR TfiTs STATE OF ILLINOIS Caverete ►rice ornew APPIleeWc Catutry Crop rise level Cleetlee Ce•eryels) Status Pr6vIsl6es/CeMtseneets (•)Ksnc(89) Cam Crop Revenue Cvg.(44) 85% 1009/6 EU Active 2005-NCIS 700B-CRC BASIC Provisions 07/242003 2007-NCIS 701W BASIC Provisions 08N12006 2002-NCIS 702-CRC CROP Provisions I t/1512001 2W3-NCIS 701 QUALITY ADJ ENDR 09/192002 2004-NCIS 700B-CRC-CCL'-RV ENDR 12/012003 2007 SPECIAL COUNTY PROVISIONS 12/032006 (')Kane(e9) Soyba+ns Crop Revenuc Cvg.(44) 85% 100% YA EU Active 2005-NCIS 7009-CRC BASIC Provisions 0712412003 2007.NCIS 701 W BASIC Provisions 08/0112006 2002-NCIS 702-CRC CROP Provisions 11/15/2001 2003-NCIS 701 QUALITY ADJ ENDR 09/19/2002 2004-NCIS 7008-CRC-CU-KV ENDR I2MI2W3 2007 SPECIAL,COUNTY PROVISIONS 121(131206 ALL STATE/COUNTY OPTION: Ycs ("-Denotes Primary County designation for tht crop) ASSIGNMENT OF INDEMNITY: Non. IMPORTANT DATES 2007 C*OF YEAR SALES mODUCr)ON ACRIAGE PREMtuM COUNTv CROP CLOSING REPORTING REPORTING UmuNC TMMINAVION CANCGLtwnON Kant(89) Cum 3/152007 4/30/2007 7/162007 10/1/2007 3/15/2008 3/152008 Kane(89) Soybeans 3/152007 4/302007 7/162007 10/12007 3/152008 3/152008 PLEASE REVIEW FOR ACCOXACY AND CONTACGf YOUR ACrYsW IF Yft HAVE ANY QUESTIONS, YOUR AGENT IS: Code No: 275774 IST FCS-SYCAMORE Thant: (81$)787-4979 1350 W.PRAIRIE DkIVE SYCAMORL--IL 60178 Fax: (815)756.7886 (Form M915) 3 - � • AGENCY 04-0067-00 POLICY 79887917 . 13645 (10-06) T F BUCKI FINANCIAL GROUP INC 5N264 ROUTE 31 SAINT CHARLES IL 60175 04-04-2007 a �dgU.Owners �fs�'tE1"l1fZC�'+ Life Home Car Business The lllo16ro6�'mir�o�eQeo P.O. BOX 30660, LANSING, MICHIGAN 48909-8160 • 517-323-1200 AUTO-OWNERS INSURANCE COMPANY AUTO-OWNERS LIFE INSURANCE COMPANY HOME-OWNERS INSURANCE COMPANY OWNERS INSURANCE COMPANY PROPERTY-OWNERS INSURANCE COMPANY SOUTHERN-OWNERS INSURANCE COMPANY DEZERI 8 SHERRI DERAEDT 45W300 HILLVIEW LN HAMPSHIRE IL 60140-7500 Thank you for allowing Auto-Owners to handle your insurance needs. Auto-Owners Insurance Group is financially sound with sufficient reserves to be ranked among the leaders in the in- dustry for financial security. Our A+ + (Superior) rating by the A.M. Best Company signifies that we have the finan- cial strength to provide the insurance protection you need. Feel free to contact your independent Auto-Owners agent with questions you may have about any of your insurance needs. Your agency's phone number is (630) 377-2600. Auto-Owners Insurance - The "No Problem" People * * * * * * * THIS IS NOTA BILL. * * * * * * * IF ADDITIONAL PREMIUM IS OWED, A BILL WILL BE MAILED SEPARATELY. PLEASE PAY ANY UNPAID BILLS. — Serving Our Policyholders and Agents for More Than 90 Years — s auto-,Owners Page 1 33419 (01-03) Issued 04-04-2007 INSURANCE COMPANY FARM-PAK POLICY DECLARATIONS 6101 ANACAPRI BLVD. , LANSING, MI 48917-3999 Endorsement Effective 03-21-2007 AGENCY T F BUCKI FINANCIAL GROUP INC 04-0067-00 MKT TERR 097 (630) 377-2600 POLICY NUMBER 954104 79887917 INSURED DEZERI 8 SHERRI DERAEDT Company Use 79-41-IL-1995 Company POLICY TERM ADDRESS 45W300 HILLVIEW LN Bill 12:01 a.m. -to 12:01 a.m. HAMPSHIRE IL 6014+0-7500 07-01-2006 07-01-2007 This policy is amended in consideration of the additional or return premium shown below. This Declarations voids and replaces all previously issued Declarations bearing the same policy number and premium term. Entity: Individual Type of Farm: Grain Policy Deductible: $1,000 Total Acres: 1843.0 County: 056 SECTION I PROPERTY PROTECTION LOCATION 001 Property Description: 40.0 Acres , Section 22 41N R6E Township Street Address: IL 60140 Rating Information: Protection Class 10, Territory 01, Kane County ITEM COVERAGE LIMITS PREMIUM LOCATION 002 Property Description: 111 .0 Acres , Section 08 41N 7E Township Street Address: IL 60123 Rating Information: Protection Class 10, Territory 01, Kane County LOCATION 003 Property Description: 11 .0 Acres , Section 19 41N 7E Township Street Address: IL 60140 Rating Information: Protection Class 10, Territory 01, Kane County LOCATION 004 Property Description: 60. 0 Acres , Section 07 41N 7E Township Street Address: IL 60140 Rating Information: Protection Class 10, Territory 01, Kane County LOCATION OOS Property Description: 5.0 Acres , Section 19 41N Township Street Address: IL 60170 Rating Information: Protection Class 10, Territory 01, Kane County Page 2 33419 (01-0b AUTO-OWNERS INS. CO. Issued 04-04-2007 AGENCY T F BUCKI FINANCIAL GROUP INC Company POLICY NUMBER 954104 79887917 04-0067-00 MKT TERR 097 Bill Company Use 79-41-IL-1995 INSURED DEZERI 8 SHERRI DERAEDT Term 07-01-2006 to 07-01-2007 Coverage E Farm Buildings and Structures 010 Barn One Story $50,000 $569. 00 _Actual Cash Value Broad Perils i Metal/Pole Rate Type: 2 020 Grain Bin 510,000 $61 .19 Actual Cash Value Broad Perils Steel Rate Type: Grain Bin 030 Grain Bin $10,000 $61 .19 Actual Cash Value Broad Perils Steel Rate Type: Grain Bin 040 Grain Bin $10,000 $61 .19 Actual Cash Value Broad Perils Steel Rate Type: Grain Bin 050 Grain Bin $2,000 $12.23 Actual Cash Value Broad Perils Steel Rate Type: Grain Bin 060 Grain Bin $5,000 $30.59 Actual Cash Value Broad Perils Steel Rate Type: Grain Bin 070 Grain Bin $10,000 $61 .19 Actual Cash Value Broad Perils Steel Rate Type: Grain Bin 080 Grain Bin $20,000 $122.38 Actual Cash Value Broad Perils Steel Rate Type: Grain Bin 090 Grain Bin $30,000 $153.58 Actual rash Value - Broad Perils Steel Rate Type: Grain Bin t4uto.-Owners Page 3 33419 (01-03) Issued 04-04-2007 INSURANCE COMPANY FARM-PAK POLICY DECLARATIONS 6101 ANACAPRI BLVD. , LANSING, MI 48917-3999 Endorsement Effective 03-21-2007 AGENCY T F BUCKI FINANCIAL GROUP INC 04-0067-00 MKT TERR 097 (630) 377-2600 POLICY NUMBER 954104 79887917 INSURED DEZERI & SHERRI DERAEDT Company Use 79-41-IL-1995 Company POLICY TERM ADDRESS 45W300 HILLVIEW LN Bill 12:01 a.m. 12:01 a.m. to HAMPSHIRE IL 60140-7500 07-01-2006 07-01-2007 This policy is amended in consideration of the additional or return premium shown below. This Declarations voids and replaces all previously issued Declarations bearing the same policy number and premium term. 100 Barn One Story $80,000 $569.00. Actual Cash Value Broad Perils Metal/Pole Rate Type: 1 110 Grain Bin $20,000 5122.38 Actual Cash Value Broad Perils Steel 30 X 12 Rate Type: Grain Bin TERRORISM COVERAGE $9.29 LOCATION 006 Property Description: 200.0 Acres , Section 07 41N 7E Township Street Address: IL 60140 Rating Information: Protection Class 10, Territory 01, Kane County Coverage E Farm Buildings and Structures 010 Grain Bin $7,000 $42.83 Actual Cash Value Broad Perils Steel Rate Type: Grain Bin TERRORISM COVERAGE $.21 LOCATION 007 Property Description: 40.0 Acres , Section 23 T41N R6E Township Street Address: IL 60140 Rating Information: Protection Class 10, Territory 01, Kane County LOCATION 008 Property Description: 9.0 Acres ' Section 08 Plato Township Street Addpass'. IL 60140 Rating Information: Protection Class 10, Territory 01, Kane County 010 Coverage A Dwelling $307,500 $1,893.39 Frame Non-Owner Occupied 1976 Replacement Cost Special Perils Adjusted Value Provision Applies Page 4 33419 (01-Q3) AUTO-OWNERS INS. CO. Issued 04-04-2007 AGENCY T F BUCKI FINANCIAL GROUP INC Company POLICY NUMBER 954104 79887917 04-0067-00 MKT TERR 097 Bill Company Use 79-41-IL-1995 INSURED DEZERI & SHERRI DERAEDT Term 07-01-2006 to 07-01-2007 Coverage B Other Non-Farm Structures $30,750 Included Replacement Cost Special Perils Coverage D Loss of Rents $30,750 Included Premium Adjustments That Apply Smoke Detector Discount Included Fire Extinguisher Discount Included Deadbolt Lock Discount Included No Solid Fuel Heating Except Fireplace Included Coverage E Farm Buildings and Structures 020 Shed #1 $15,000 $109.00 Actual Cash Value Broad Perils Metal/Pole 36 X 37 Rate Type: 1 030 Shed #2 $7,000 $52.00 Actual Cash Value Broad Perils Metal/Pole 20 X 26 Rate Type: 1 TERRORISM COVERAGE $10.28 LOCATION 009 Property Description: 128.0 Acres , Section 18 Plato Township Street Address: IL 60140 Rating Information: Protection Class 10, Territory 01, Kane County LOCATION O10 Property Description: 40.0 Acres , Section 13 41N R6E Township Street Address: IL 60140 Rating Information: Protection Class 10, Territory 01, Kane County LOCATION 011 Property Description: 10.0 Acres , Section 08 Plato Center Township Street Address: IL 60140 Rating Information: Protection Class 10, Territory 01, Kane County LOCATION 012 Property Description: 67.0 Acres , Section 08 Plato Center Township Street Address: IL 60140 Rating Information: Protection Class 10, Territory 01, Kane County auto-Owners Page 5 33419 (01-03) Issued 04-04-2007 INSURANCE COMPANY FARM-PAK POLICY DECLARATIONS 6101 ANACAPRI BLVD. , LANSING, MI 48917-3994 Endorsement Effective 03-21-2007 AGENCY T F BUCKI FINANCIAL GROUP INC 04-0067-00 MKT TERR 097 (630) 377-2600 POLICY NUMBER 954104 79887917 INSURED DEZERI & SHERRI DERAEDT Company Use 79-41-IL-1995 Company POLICY TERM ADDRESS 45W300 HILLVIEW LN Bill 12:01 a.m. t0 12:01 a.m. HAMPSHIRE , IL 60140-7500 07-01-2006 07-01-2007 This policy is amended in consideration of the additional or return premium shown below. This Declarations voids and replaces all previously issued Declarations bearing the same policy number and premium term. LOCATION 013 Property Description: 117.0 Acres , Section 10 Plato Center Township Street Address: IL 60123 Rating information: Protection Class 10, Territory 01, Kane County LOCATION 014 Property Description: 102.0 Acres , Section 11 Plato Center Township Street Address: IL 60123 Rating Information: Protection Class 10, Territory 01, Kane County LOCATION 015 Property Description: 40.0 Acres , Section 33 Plato Center Township Street Address: IL 60123 Rating Information: Protection Class 10, Territory 01, Kane County LOCATION 016 Property Description: 30.0 Acres , Section 04 Campton Township Street Address: IL 60123 Rating Information: Protection Class 10, Territory 01, Kane County LOCATION 017 Property Description: 142.0 Acres , Section 24 41N R6E Township Street Address: IL 60140 Rating information: Protection Class 10, Territory 01, Kane County LOCATION 018 Property Description: 80.0 Acres , Section 23 41N R6E Township Street Address: IL 60140 Rating Information: Protection Class 10, Territory 01, Kane County Page 6 33419 (01-Q3) AUTO-OWNERS INS. CO. Issued 04-04-2007 AGENCY T F BUCKI FINANCIAL GROUP INC Company POLICY NUMBER 954104 79887917 04-0067-00 MKT TERR 097 Bill Company Use 79-41-IL-1995 INSURED DEZERI & SHERRI DERAEDT Term 07-01-2006 to 07-01-2007 LOCATION 019 Property Description: 36.0 Acres , Section 14 41N R6E Township Street Address: IL 60140 Rating Information: Protection Class 10, Territory 01, Kane County LOCATION 020 Property Description: 80.0 Acres , Section 28 41N R7E Township Street Address: IL 60123 Rating Information: Protection Class 10, Territory 01, Kane County LOCATION 021 Property Description: 53.0 Acres , Section 08 Afton Township Street Address: IL 60115 Rating Information: Protection Class 10, Territory 01, Dekalb County LOCATION 022 Property Description: 41 .0 Acres , Section 09 Afton Township Street Address: IL 60115 Rating Information: Protection Class 10, Territory 01, Dekalb County LOCATION 023 Property Description: 2.0 Acres Street Address: 45W300 Hillview Hampshire , IL 60140 Rating Information: Protection Class 07, Territory 01, Kane County 010 Coverage A Dwelling $386,500 $2,015.69 Frame Owner Occupied Primary 1992 Replacement Cost Special Perils Adjusted Value Provision Applies Coverage B Other Non-Farm Structures $38,650 Included Replacement Cost Special Perils Coverage C Household Personal Property $270,550 $312.99 Replacement Cost Broad Perils Coverage D Additional Living Expense $77,300 Included t4uto.Owners Page 7 33419 (01-03) Issued 04-04-2007 INSURANCE COMPANY FARM-PAK POLICY DECLARATIONS 6101 ANACAPRI BLVD. , LANSING, MI 48917-3999 Endorsement Effective 03-21-2007 AGENCY T F BUCKI FINANCIAL GROUP INC 04-0067-00 MKT TERR 097 (630) 377-2600 POLICY NUMBER 954104 79887917 INSURED DEZERI & SHERRI DERAEDT Company Use 79-41-IL-1995 Company POLICY TERM ADDRESS 45W3O0 HILLVIEW LN Bill 12:01 a.m. 12:01 a.m. HAMPSHIRE IL 60140-7500 07-01-2006. t0" 07-01-2007 This policy is amended in consideration of the additional or return premium shown below. This Declarations voids and replaces all previously issued Declarations bearing the same policy number and premium term. Premium Adjustments That Apply 100% Replacement Cost Discount Included Mature Discount Policyholder Term Age 53 Included Smoke Detector Discount Included Fire Extinguisher Discount Included Deadbolt Lock Discount Included No Solid Fuel Heating Except Fireplace Included Optional Coverages That Apply Guaranteed Home Replacement Cost $104.33 LOCATION 024 Property Description: 232.0 Acres , Section 13 T41N R6E Township Street Address: IL 60140 Rating Information: Protection Class 10, Territory 01, Kane County LOCATION 025 Property Description: 160.0 Acres , Section 21 T37N R4E Township Street Address: IL 60115 Rating Information: Protection Class 10, Territory 01, Dekalb County LOCATION 026 Property Description: 7.0 Acres Street Address: 16133 S First St Dekalb , IL 60115 Rating Information: Protection Class 10, Territory 01, Dekalb County 010 Coverage A Dwelling $186,142 $1,163.34 Frame Non-Owner Occupied 1946 Actual Cash Value Broad Perils Coverage B Other Non-Farm Structures $18,614 Included Actual Cash Value broad Perils Coverage D Loss of Rents $18,614 Included Premium Adjustments That Apply No Solid Fuel Heating Except Fireplace Included Page 8 33419 (01-03) AUTO-OWNERS INS. CO. Issued 04-04-2007 AGENCY T F BUCKI FINANCIAL GROUP INC Company POLICY NUMBER 954104 79887917 04-0067-00 MKT TERR 097 Bill Company Use 79-41-IL-1995 INSURED DEZERI 8 SHERRI DERAEDT Term 07-01-2006 to 07-01-2007 Coverage E Farm Buildings and Structures 020 Cinder Block Barn $200,000 $2,171 .00 Replacement Cost Broad Perils Masonry 50 X 75 Rate Type: 2 Adjusted Value Provision Applies 030 Barn One Story $15,000 $304.41 Actual Cash Value Broad Perils Frame 70 X 60 Rate Type: 3 040 Grain Bin $5,000 $30.59 Actual Cash Value Broad Perils Steel Rate Type: Grain Bin 050 Grain Bin $5,000 $30.59 Actual Cash Value Broad Perils Steel Rate Type: Grain Bin 060 Grain Bin $5,000 $30.59 Actual Cash Value Broad Perils Steel Rate Type: Grain Bin 070 Pole Barn $75,000 $534.00 Actual Cash Value Broad Perils Frame 50 X 100 Rate Type: 1 TERRORISM COVERAGE $21 .32 COVERAGE F FARM PERSONAL PROPERTY LIMITS PREMIUM Blanket Coverage $14,000 $102.46 Actual Cash Value Broad Perils LIMITS PREMIUM Scheduled Coverage a001 Machinery $523,700 $2,046.19 Actual Cash Value Special Perils Rate Class: Machinery tAuto.Owners Page 9 33419 (01-03) Issued 04-04-2007 INSURANCE COMPANY FARM-PAK POLICY DECLARATIONS 6101 ANACAPRI BLVD. , LANSING, MI 48917-3999 AGENCY T F BUCKI FINANCIAL GROUP INC Endorsement Effective 03-21-2007 04-0067-00 MKT TERR 097 (630) 377-2600 POLICY NUMBER 954104 79887917 INSURED DEZERI 8 SHERRI DERAEDT Company Use 79-41-IL-1995 Company POLICY TERM ADDRESS 45W300 HILLVIEW LN Bill 12:01 a.m. 12:01 a.m. to HAMPSHIRE IL 60140-7500 07-01-2006 07-01-2007 This Policy is amended in consideration of the additional or return premium shown below. This Declarations voids and replaces all previously issued Declarations bearing the same policy number and Premium term. Borrowed Equipment $100,000 Included TERRORISM COVERAGE $10.74 ADDITIONAL COVERAGES LIMITS PREMIUM Refrigerated Products $500 Included Fire Department Charges $500 Included Power and Light Pole Coverage $500 Included Credit Card, Charge Plate, Fund Transfer Card, $1,000 Included Check Forgery and Counterfeit, Money Coverage Road Trouble Service - Farm Implements $500 Included SECTION II PERSONAL LIABILITY PROTECTION LIMITS PREMIUM Coverage G Personal Liability (each occurrence) $500,000 $169.00 Coverage H Medical Payments to Others (each person) $1 ,000 Included Premium Adjustments That Apply Residences Occupied by Tenant ( 2) $34.00 Locations with Farm Buildings ( 3) $66.00 Additional Coverages That Apply Upset and Overspray $25,000 Included Farm Products Recall $10,000 Included Optional Coverages That Apply Farm Employer's Liability and Farm Employee's $57.00 Medical Payments Additional Part Time Employee 0-3 months ( 2) $44.00 Additional Full Time Employee ( 1) $57.00 TERRORISM COVERAGE $2.15 TERM TOTAL FARM PREMIUM $13,278.31 PREMIUM ADJUSTMENTS $3,983.49- RETURN PREMIUM $4.57- TOTAL POLICY PREMIUM $9,294.82 Page 10 33419 (01-GS) AUTO-OWNERS INS. CO. Issued 04-04-2007 AGENCY T F BUCKI FINANCIAL GROUP INC Company 'POLICY NUMBER 954104 79887917 04-0067-00 MKT TERR 097 Bill Company Use 79-41-IL-1995 INSURED DEZERI 8 SHERRI DERAEDT Term 07-01-2006 to 07-01-2007 FORMS AND ENDORSEMENTS 33448 (01-03) 33408 (01-03) 33401 (01-03) 33402 (01-03) 33455 (01-03) 33431 (01-03) 33440 (01-06) 33473 (06-04) 33515 (07-06) 33468 (05-06) Countersigned By: auto-Owners Page 11 33419 (01-03) Issued 04-04-2007 INSURANCE COMPANY FARM-PAK POLICY DECLARATIONS 6101 ANACAPRI BLVD. , LANSING, MI 48917-3999 Endorsement Effective 03-21-2007 AGENCY T F BUCKI FINANCIAL GROUP INC 04-0067-00 MKT TERR 097 (630) 377-2600 POLICY NUMBER 954104 79887917 INSURED DEZERI & SHERRI DERAEDT Company Use 79-41-IL-1995 Company POLICY TERM ADDRESS 45W300 HILLVIEW LN Bill 12:01 a.m. 12:01 a.m. to HAMPSHIRE IL 60140-7500 07-01-2006 07-01-2007 This policy is amended in consideration of the additional or return premium shown below. This Declarations voids and replaces all previously issued Declarations bearing the same policy number and premium term. SECURED INTERESTED PARTIES AND/OR ADDITIONAL INTERESTED PARTIES Item 001 NATIONAL BANK & TRUST CO OF SYCAMORE ITS SUCCESSORS &/OR ASSIGNS 1425 DEKALB AVE SYCAMORE IL 60178-2747 Interest: Mortgagee SIP-ID: IL014932 Description: 45W300 Hillview Lane Item 002 COMMONWEALTH EDISON COMPANY Loan: # PO BOX 767 CHICAGO IL 60690-0767 Interest: Additional Interest SIP-ID: IL010653 Description: Location 5 Item 003 COMMONWEALTH EDISON COMPANY Loan: # PO BOX 767 CHICAGO IL 60690-0767 Interest: Additional Interest SIP-ID: IL010653 Description: Location 20 Item 004 THE CITY OF ELGIN 150 DEXTER CT ELGIN IL 60120-5527 Interest: Additional Interest SIP-ID: IL050213 Description: Location 15 & 16 Item 005 WILLIAM H DITTMAN 19N265 WOODVIEW PKWY HAMPSHIRE IL 60140-8316 Interest: Additional Interest SIP-ID: IL056775 Description: Location 16,19,20,21,25 Page 12 33419 (01-021) AUTO-OWNERS INS. CO. Issued 04-04-2007 AGENCY T F BUCKI FINANCIAL GROUP INC Company POLICY NUMBER 954104 79887917 04-0067-00 MKT TERR 097 Bill Company Use 79-41-IL-1995 INSURED DEZERI 8 SHERRI DERAEDT Term 07-01-2006 to 07-01-2007 Item 006 MARVIN DITTMAN 474 JOHN MARSHALL LN SYCAMORE IL 60178-8780 Interest: Additional Interest SIP-ID: ILD56776 Description: Locations 16,19,20,21,25 Item 007 MINERA POLLNOW 3095 0 OAK ST GENOA IL 60135-8085 Interest: Additional Interest SIP-ID: IL056777 Item 008 WILLIAM CRISTY 4517 S RIDGEWAY RD RINGWOOD IL 60072-9621 Interest: Additional Interest SIP-ID: IL056778 Description: 160A Sec 21 Victor Twp Dekalb Co