EXCLUSIVE OPTION TO PURCHASE DEVELOPMENT RIGHTS WITH PROVISION FOR ACCEPTANCE AND ASSIGNMENT
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1 EXCLUSIVE OPTION TO PURCHASE DEVELOPMENT RIGHTS WITH PROVISION FOR ACCEPTANCE AND ASSIGNMENT Page 1 of@ The Conservation Fund tenants in common, hereinafter collectively called the "Grantor," whose post office address in consideration of One and No/I00 Dollars ($1.00) and other good and valuable consideration, the receipt of which is hereby acknowledged, does hereby GRANT to THE CONSERVATION FUND, whose post office address is 1800 N. Kent St., Suite 1120, Arlington, VA hereinafter called the "Grantee" the exclusive option to purchase the development rights on the following described land situated in the Township of@, County State of Michigan: PROPERTY DESCRIPTION: (Hereafter referred to as the "Property") See Exhibit "A" Attached Hereto for the FURTHER sum AND No/I00 DOLLARS, ($@), provided within 120 days from the date hereof, (a) the Director of the Michigan Department of Agriculture, (hereinafter referred to as the "Assignee") shall accept the terms of this option, and (b) notice of the Assignee's acceptance of this option shall be delivered by Certified Mail addressed to the Grantor within ten (10) business days following its acceptance, whereupon this option shall become a contract binding upon the Grantor and the Assignee. (1.) Upon acceptance of this development rights purchase option by the Grantee, the Grantee will request a policy of title insurance from any reputable title insurance company insuring the title of the Grantor. This agreement shall not be binding on the Grantee if title of the Grantor is not free and clear. The Grantor further agrees to execute and deliver a good and sufficient Farmland Development Rights Easement in the form attached hereto as EXHIBIT "B," conveying to the Assignee the development rights of the property herein described, free of all liens and encumbrances otherwise satisfactory to the Attorney General of the State of Michigan except covenants, restrictions and easements of record. Although the Grantee will obtain title insurance, the Grantor is not relieved of the responsibility to clear defects in title. (2) Grantor agrees not to do, or allow others to do, any act by which the value or title to the development rights may be diminished or encumbered. Grantor further covenants and binds himself, his executors, administrators, successors and assigns to carry out the terms of this option agreement.
2 Page 2 of4 (3) Grantor shall execute and deliver to Grantee at closing a Farmland Development Rights Easement in substantially the form attached as Exhibit B to effectuate conveyance of the development rights to Grantee. The final form of the Farmland Development Rights Easement to be delivered by Grantor at closing shall be subject to approval by the Michigan Attorney General. (4) Grantor acknowledges and agrees to the assignment of this option to the Michigan Department of Agriculture, including all rights, privileges and obligations set forth therein. PARAGRAPH) Grantor intends to complete this transaction as part of a Section 1031 tax deferred exchange. Grantee and Assignee agree to cooperate with Grantor in documenting and completing such exchange under the terms and conditions of this Agreement. Grantee and Assignee shall incur no additional expense or liability by such cooperation. Notwithstanding the foregoing, Grantor agrees and understands that time is of the essence with regard to the Closing hereunder that the Closing may not be extended because of Grantor's desire to accomplish a Section 1031 deferred tax free exchange.
3 Page 3 of4 IN WITNESS WHEREOF, The Grantor has signed this option agreement on this day of ---', (Type or print names of witnesses beneath signatures) ST ATE OF MICIDGAN COUNTY OF _--'-- On this day of, A.D. 2001, before me, a Notary Public, personally appeared to me known to be the same persons who executed the foregoing option and acknowledged the same to be own free act and deed. Notary Public My Commission Expires: County, Michigan
4 Page 4 of4 NOTICE TO GRANTOR: You are hereby notified that the Director of the Michigan Department of Agriculture, acting for and on behalf of the STATE OF MlCillGAN, the Assignee, on,2001, approved of the acceptance of this option for the purchase of the land at the price as stated and in accordance with its terms and conditions and has directed that this notice of the acceptance of the option terms be sent to the Grantor with the information that a binding contract now exists. MICillGAN DEPARTMENT OF AGRICULTURE By: Richard A. Harlow, Manager Farmland and Open Space Preservation Environmental Stewardship Division
5 -,-.,~ S. DEPARTMCNTOF AGRICULTURE COMMODITY CREDIT CORPORA non CCC-I2S5-A OMB No OPTION AGREEMENT TO PURCHASE WETLANDS RESERVE PROGRAM O~ONAGREEMENTTOPURCHASENO. This Option Agreement is between the Commodity Credit Corporation (hereafter «CCC"), and the following named Landowner(s), their heirs, successors and assigns (hereafter "Landowner"): Name: Ad~~: In consideration of One Dollar ($1.00), receipt of which the Landowr.er acknowledges, CCC and the Landowner agree that: 1. To further the Wetlands Reserve Program (WRP), ifccc exercises this option to purchase, the Landowner agrees to convey a WRP casement ~ the United States of America. The WRP easement is attached as EXlllBIT A and encumbers the land generally desaibed or depicted on EXHIBIT B, (hereafter the "Property"). Except for DonnaI farming, pasturing, and grazing, the Landownec as?;recs Dot to do, or allow others to do, any act by which the value or title to the Property may be diminished or encumbered "L. Subject to the terms of this Agreement, CCC will pay the Landowner S for conveyance of the easement. The Landowner agn:cs to accept this amount as the full and final compensation for the easement This offer is based on an estimated acres subject to change based on final acreage determination. 3. CCC will arrange for closing of the easement conveyance which may involve use of a title company or other closing agent CCC will secure at its expense title evidence sufficient to meet Federal standards. 4. At dosing, the Landowner agrees to execute an easement deed in the form described in EXHIBIT A, along with any other document which is necessary for the United States to acquire a satisfactory title to the Property. "Joe Landowner shall pay at closing any conveyance taxes and taxes owing against the Property. 5. With prior notice to the Landowner, CCC may hereafter enter upon the Property for planning and acquisition purposes prior to closing. At its cost, CCC may survey and monument the Property ~d any associated access route. 6. All tenus and conditions of this Agreement are expressly stated herein, and there are no other related representations or promises. No Member of or Delegate to Congr~, or Resident Commissioner shall be admitted to' any share or part of this Agreement or benefit from it. 7. This agreement is effective for months from the date of execution below. During that period, CCC has the option to acquire the easement for the stated purchase price. 8. Except for reasons beyond the control of the Landowner, if the Landowner fails to convey the easement, the Landowner will be in default and shall pay the United States the amount of costs incurred by CCC for survey and all other actions taken after the date, and in furtherance, of this Option Agreement.
6 Executed this day of --'. 199_. Umdowne~s), ccc Title James G. Marshall~ III Wetlands Reserve Program Coordinator This instrument was drafted by the Office of the General Counsel, U.S. Department of Agriculture, Washington, D.C
7 ASSIGNMENT OF OPTION THE CONSERV A non FUND (the "Fund") a non profit corporation with offices at 1800 North Kent Street, Suite 1120, Arlington, Virginia for and in consideration of 1 percent (1%) of the purchase price of the development rights on the land hereinafter referred to as the "Optioned Property", the delivery of which is hereby acknowledged, does hereby Assign and Transfer to the STATE OF MICIDGAN, DEPARTMENT OF AGRICULTURE that certain Exclusive Option to Purchase Development Rights with Provision for Acceptance and Assignment (the "Option") by and between the Fund attached hereto as Exhibit "A", including, without limitation, all rights, privileges and obligations set forth therein. The property subject to said Option is more particularly described in said Option. IN WITNESS WHEREOF, the undersigned, The Conservation Fund by and through its duly authorized representative' has set its hand and seal this day of The Conservation Fund, A Maryland non-profit corporation By: Jodi O'Day, Deputy General Council ACKNOWLEDGEMENT Commonwealth of Virginia County of Arlington Ss: Personally appeared the above-named Jodi O'Day, Deputy General Council of the Conservation Fund, and acknowledge the foregoing to be her free act and deed in her said capacity, and the free act and deed of The Conservation Fund. Before me, this day of --/, Notary Public My Commission Expires:
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