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forestry lease agreement

Long term forestry rent

On July 10 an 11-year rental agreement was signed to plant Eucalyptus Smithii trees at a farm in Lavalleja. Annual payment upfront as a guarantee for the German landowner. We will further investigate the possibilities to generate benefits for this investor as a result of forestry carbon credits. In addition, we will also lease out the part for grazing of cows in a 6 year contract with the option of 5 year renewal. During 8 months it will not be possible to have cows in between the newly planted trees. Repair and maintenance is part of the rental agreement.