re: Pipeline on farmland

Page 3

The first term of this SERVITUDE shall be for a period of ten (10) years, provided XXX gives written notice to OWNER of its intent to exercise its option on or before MM/DD/YEAR. The mutually agreed upon consideration to the OWNER for an additional ten (10) year option term shall be $C,CCC per rod adjusted upward by the increase, if any, in the consumer price index, all U.S. items prepared by the U.S. Bureau of Labor Statistics, using as the base for the computation the average for the full year WWWW (initial year of agreement) and comparing it to the average of the 12 month period ending three months prior to the ending month of the Initial Term to determine the percentage of increase to be applied to the consideration.

Consideration for subsequent ten (10) year option periods will be determined by adjustment upward by the increase, if any, in the consumer price index, all urban consumers, prepared by the U.S. Bureau of Labor Statistics, using as a base for the computation the average consumer price index for the year 20, and comparing it with the average of the twelve (12) month period ending three months prior to the ending month of the current ten (10) year option period to determine the percentage increase to be applied to the consideration.

The index figures shall be taken from the publication of the U.S. Department of Labor, and the Department of Labor shall be the sole judge as to the comparability of successive indexes, should there be a change in the form of the consumer price index. If the Department of Labor cannot supply an index comparable to the consumer price index at the time the option is exercised, then another index representative of the changes in the purchasing power of the U.S. Dollar will be used. If either party cannot agree on a substitute method to determine the proper consideration, then the parties shall submit the same to arbitration in accordance with the now existing arbitration law of the State of Louisiana for determination of the price. But in no event will the consideration be less than that paid for the primary term. The second term of the SERVITUDE shall be for a period of ten (10) years from and after the date of expiration of the first term. Upon expiration of the first term (without XXX exercising its second term option within a reasonable period of time) or upon expiration of a properly secured second term, the SERVIOTUDE shall revert to OWNER, his successors and assigns, without the necessity of any action on the part of either of the parties hereto; provided, however, XXX is hereby granted the right and option at any time until one (1) year after the expiration of said SERVITUDE to remove the pipeline which XXX may have placed thereon or thereunder. All above ground structures and material shall be removed by XXX from the above described premises with the one (1) year expiration period. In any event, XXX shall restore the above described premises to as near its former condition as is reasonably practicable.

The rights herein granted may not be assigned in whole or in part unless prior approval has been granted to XXX by the OWNER which approval shall not be arbitrarily withheld. Upon the assignment or transfer of the SERVITUDE, any of XXX’s liabilities for this SERVITUDE will remain with XXX unless specifically set out in an assignment or transfer agreement and accepted by the party receiving the assignment or transfer of the SERVITUDE.

The terms and conditions and provisions of this contract shall extend to and be binding upon the heirs, executors, administrators, personal representatives, successors and assign of the parties hereto.

IN WITNESS WHEREOF, the parties have hereunto affixed their signatures in the place and on the date and in the presence of the witnesses hereinafter indicated.

Executed on behalf of XXX, herein represented by _______________________________ on the ___ day of _______________.

WITNESSES: GRANTEE:

XXX
By: ___________________________________

_______________________________
Signature


_______________________________ _______________________________
Printed Name Signature

__________________________
Printed Name
Title: __________________________

_______________________________
Signature


_______________________________
Printed Name

ACKNOWLEDGEMENT

STATE OF _______________________
COUNTRY/PARISH OF______________

This instrument was acknowledged before me on this ______ day of __month_______, __year__ by ________________________________.

______________________________
Notary Public

My Commission Expires:
___________________