Document:

PPL Backstop Agreement

  BACKSTOP AGREEMENT 
 THIS BACKSTOP AGREEMENT (the "Agreement") made this 21st day of March, 2013 between Blue Ridge Real Estate Company, a Pennsylvania corporation ("Seller"), having a business address at Route 940 and Moseywood Road, P.O. Box 707, Blakeslee, PA 18610, and PPL Electric Utilities Corporation, a Pennsylvania corporation ("Buyer"), having an address at 2 N. 9th Street, Allentown, PA 18101. 
 WITNESSETH: 
 WHEREAS, Seller is the owner of certain property located in the Township of Buck, County of Luzerne, containing approximately 1,557 acres of land, which is identified by Tax ID. No. 05-L15-00A-008-000 and more fully described or identified on Exhibit A hereto (the "Property"). 
 WHEREAS, in filings with the Pennsylvania Public Utilities Commission ("PUC"), Buyer has identified the Property as one over which it seeks authorization for the exercise of eminent domain power pursuant to 15 Pa. C.S. § 1511, for the taking of a right-of way over the Property related to the construction of two power lines associated with its Northeast-Pocono Reliability Project (the "ROW"). 
 WHEREAS, on February 21, 2013, Seller filed a timely Petition to Intervene with the PUC, challenging Buyer's exercise of eminent domain with regard to the Property. 
 WHEREAS, Seller has engaged in negotiations with the Pennsylvania Game Commission (the "Commission") regarding the purchase of, inter alia, the Property, which negotiations have culminated in Seller's grant of an option to purchase the Property to the Commission (the "Option"). 
 WHEREAS, upon acceptance of the Option by the Commission, the Option by its terms shall convert into a binding Land Sale Contract. The Option is scheduled for review by the Commission at its April 14, 2013 meeting and, if accepted, settlement on the transfer of the Property would occur on July 31, 2013. 
 WHEREAS, because of its interest in obtaining the ROW, Buyer has participated in certain discussions between Seller and the Commission, but it is not a party to the potential sale. 
 WHEREAS, Seller desires to enter into this Agreement to provide assurance for the orderly disposition of the Property and Buyer desires to enter into this Agreement to provide for the acquisition of the ROW prior to the Commission's settlement on the Property. 
 WHEREAS, in accordance with the above, the parties enter into this Agreement to set forth the terms and conditions of the purchase of the Property by the Buyer in the event that the Seller's sale to the Commission fails to come to fruition. 

  

 

 
 NOW THEREFORE, in consideration of the mutual promises and covenants set forth herein, and other good and valuable consideration, the receipt, adequacy and sufficiency of which are hereby acknowledged, the parties agree as follows: 
 
 1. 
 If Seller owns the Property on August 1, 2013, Seller agrees to sell the Property to the Buyer and Buyer agrees to buy the Property from the Seller. The price or consideration shall be Five Million Dollars ($5,000,000.00), which shall be paid to Seller by Buyer at settlement. 
 
 2. 
 BUYER SHALL ACQUIRE THE PROPERTY IN AN "AS-IS" CONDITION, WITH ANY AND ALL FAULTS. OTHER THAN REPRESENTATIONS OF TITLE THAT MAY ACCOMPANY THE SPECIAL WARRANTY DEED, SELLER MAKES NO REPRESENTATION, WARRANTIES OR GUARANTEES OF ANY KIND, EXPRESS, IMPLIED OR ARISING OUT OF OPERATION OF LAW, REGARDING THE PROPERTY OR ITS CONDITION AND HEREBY DISCLAIMS ALL SUCH REPRESENTATION, WARRANTIES OR GUARANTEES. ACCORDINGLY, BUYER, FOR IT AND ITS SUCCESSORS AND ASSIGNS, HEREBY RELEASES AND DISCHARGES THE SELLER FROM CLAIMS RELATED TO THE PROPERTY AND ITS CONDITION, INCLUDING ANY IMPROVEMENTS THEREON. THIS PARAGRAPH SURVIVES SETTLEMENT AND IS NOT MERGED INTO THE DEED. 
 
 3. 
 The deed to Buyer will contain a clause that Seller retains the rights to develop oil and gas until August 31, 2023. Seller shall, during this period, have the usufruct of the oil and gas and shall keep all rents, bonuses, and royalties derived therefrom. After August 31, 2023, the rights shall automatically cease and terminate and any and all oil and gas rights shall become the property of Buyer absolutely. Notwithstanding the foregoing, in no event shall the exercise of the rights reserved by Seller herein interfere with the operation of any of Buyer's electric transmission or distribution facilities constructed on the Property. 
 
 4. 
 On or before March 31, 2013, Seller shall execute a Right-of- Way Agreement, in the substantially the form set forth at Exhibit B, over the Property in the location and in the dimensions depicted on Exhibit C; provided, however, that before such execution, Buyer must certify that it has not exercised its option to terminate this Agreement, and will not terminate the Agreement, pursuant to Paragraph 9 below. Buyer agrees to release, quitclaim, discharge, indemnify, defend and hold harmless Seller, its officers, directors, employees, agents, successors and assigns from and against any and all loss, liability, damages, demands, claims, suits, fines, penalties or causes of action whatsoever, including but not limited to environmental and third party claims, caused by, resulting from, or in any way related to the Buyer's possession of the right of way rights, including resolving any environmental problems caused by Buyer, without expense to Seller, to the satisfaction of all appropriate local, state and federal governmental entities, that arises from or is related to Buyer's activities on the Property prior to settlement on the Property with either the Commission or Buyer. Buyer's obligation to indemnify pursuant to this paragraph shall terminate as of the date of settlement with either the Commission or Buyer, but not as to any claims related to events occurring after the date of the Seller's grant of right of way rights to the Buyer and before the date of such settlement. 
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 5. 
 The Property is to be conveyed free and clear of all liens except for the encumbrances, easements and other items of record or visible upon the ground, and the title to the herein described lot or piece of ground shall be good and marketable. 
 
 6. 
 Settlement shall be made on or before August 31, 2013. 
 
 7. 
 Possession is to be given at the time of settlement by delivery of a special warranty deed. 
 
 8. 
 It is understood and agreed that all transfer taxes imposed by any governmental body shall be borne by Seller. 
 
 9. 
 In the event the Seller is unable to give a good and marketable title, as above set forth, Buyer shall have the option of taking such title as the Seller can give without abatement of price, or of terminating this Agreement such that no further liability or obligation hereunder is borne by either of the parties hereunder and this Agreement shall become null and void. Buyer's exercise of the option to terminate this Agreement hereunder must be made before March 31, 2013. Seller shall take no action to disturb, alter, abridge or modify the standing of the title of the Property after the date of this Agreement, without Buyer's written consent. 
 
 10. 
 Risk of loss shall remain on Seller until Settlement hereunder. 
 
 11. 
 Seller and Buyer hereby represent that they have not utilized the services of any broker in connection with the sale and purchase of the Property. 
 
 12. 
 Seller agrees to execute and/or deliver to Buyer at settlement any and all documentation required by law. 
 
 13. 
 Deed preparation and acknowledgment are to be paid by Seller. 
 
 14. 
 Settlement shall be held at a time and location agreed upon by the parties. 
 
 15. 
 This agreement shall extend to and be binding upon the respective successors and assigns of each of the parties hereto. 
 
 16. 
 The parties agree that the grant of the ROW encumbers the Property such that Seller will not be able to effectively implement its existing development plan for the Property and in a manner that imposes inestimable marketing costs and business complications on Seller. The parties further agree that they are entering into this Agreement to provide that, if Seller grants the ROW before settlement transferring ownership of the Property to the Commission, Buyer will serve as a backstop to the Commission and agrees to purchase the Property in the event that the Commission fails to settle on the Property, as set forth herein. Accordingly, the parties agree that, in the event of Buyer's breach hereof, Seller will have no adequate remedy at law and the exercise of an equitable remedy demands that Buyer be specifically required to close on the Property according to the terms set forth herein. If Seller is in default of any of its obligations under this Agreement, including the failure by Seller to proceed to settlement, Buyer 
 3 

  

 

 
 shall have the right to pursue any applicable equitable or legal remedies under Pennsylvania law. In the event litigation is required by either party to enforce the terms of this Agreement, the prevailing party of such action shall, in addition to all other relief granted or awarded by the court, be entitled to judgment for attorneys' fees incurred by reason of such action and all costs of suit and those incurred in preparation thereof at both the trial and appellate levels. 
 
 17. 
 Time is hereby agreed to be of the essence of this Agreement. 
 
 18. 
 Buyer certifies that no PUC approval is needed to bind Buyer to the terms hereof. The signatories below certify that they have requisite corporate authority to enter into this Agreement on behalf of the entity for which they are executing this Agreement and to bind such entity to the terms hereof. 
 IN WITNESS WHEREOF, the parties hereto, intending to be legally bound hereby, have hereunto set their hands and seals the day and year first above written. 
 
 WITNESS: 
 PPL Electric Utilities Corporation
 
 /s/ JoMarie Jenkins
 By: /s/ Colleen Kester
 Colleen Kester 
 Senior Manager-Siting & Right of Way 
 

 

 
 WITNESS: 
 Blue Ridge Real Estate Company
 
 /s/ Christine A. Liebold
 By: /s/ Bruce Beaty
     Bruce Beaty, CEO and President
 4 
 

 
 EXHIBIT “A”
 TAX ID 05-L-15-00A-008-000
 1,557 ACRES LOCATED IN BUCK TOWNSHIP, LUZERNE COUNTY
 DECRIPTION OF PROPERTY

  

 

 
 EXHIBIT “B”
 PPL Form 100-19 Corp. (11/2012)
 This instrument solely grants, vests or confirms a public utility easement.
 Prepared by and return to:  
 PPL Electric Utilities Corporation
 Attn:
   Colleen Kester   
 Phone:
 610-774-7190
 Address:
 2 N 9th Street, GENN5
 Allentown, PA 18101
 Parcel ID#:  05L15 00A008000     
 Grant of Public Utility Easement
 Know all Men by these Presents, That Blue Ridge Real Estate Company, a Pennsylvania corporation, having a business address at Route 940 and Moseywood Road, P.O. Box 707, Blakeslee, PA 18610 hereinafter referred to as “GRANTOR”, in consideration of the sum of One Dollar ($1.00) and other consideration, paid at the date hereof by PPL ELECTRIC UTILITIES CORPORATION, hereinafter referred to as “PPL”, the receipt whereof being hereby acknowledged, and in lieu of condemnation, does hereby irrevocably grant and convey unto PPL, its successors, assigns and lessees, the right to construct, operate and maintain, and from time to time to reconstruct its overhead and underground electric transmission, distribution and communication lines for PPL’s use only, including but not limited to such poles, towers, guys, anchors, cables, wires, fiber optics, fixtures and apparatus above and below ground, hereinafter referred to as “electric and communication lines”, that may be from time to  time  necessary for the convenient  transaction  of  the  business  of  PPL,  its  successors, and assigns, upon, across, over, under, and within strip(s) of land 150' feet in width, said strip(s) being a part of the property which GRANTOR owns,  or in which GRANTOR has any interest in the  Township  of  Buck  County of Luzerne, 
 Commonwealth of Pennsylvania (as further described in certain deed dated  January 1, 1962 and recorded in the Office for Recording of Deeds in and for  Luzerne County in  Deed Book  1497 Page  529) (the “GRANTOR property”), as shown on plan hereto attached and made a part hereof, including the right of ingress and egress over and across the GRANTOR property to and from the said strip(s) of land at all times for any of the purposes aforesaid including the right to build or utilize existing access roads as shown on the attached exhibit; also the right to cut down, trim, remove and to keep cut down and trimmed by mechanical means or otherwise, any and all trees, brush or other undergrowth now or hereafter growing on or within said strip(s) of land, as well as the right to cut down, trim and remove and to keep cut down and removed any and all trees adjoining or outside of the strip(s) which in the judgment of PPL, its successors, and assigns, may or could potentially at any time interfere with the construction, reconstruction, maintenance or operation of the said electric and communication lines or menace the same, and in connection therewith, the right to remove, if necessary, the root systems of said trees, brush or other undergrowth, and to treat said brush and undergrowth with herbicides labeled to allow their use for the removal and control of said vegetation.
 

 

 
 And further, in consideration of said payments, GRANTOR does hereby understand, covenant and agree to and with PPL, its successors, and assigns, that no buildings, swimming pools or any other improvements or structures whatsoever shall be built, constructed or placed on, under or within said strip(s) of land; that no inflammable or explosive materials of any kind shall be stored on, under or within said strip(s) of land; and that PPL, its successors, and assigns, shall be informed of any proposed changes in use of the land located on, or changes in grade under or within the said strip(s). 
 It is further understood and agreed that PPL, its successors, and assigns, shall not be limited in its or their enjoyment of the rights hereby granted for such electric and communication lines as may be first constructed on said strip(s) of land, but shall have, at all times in the future, the right to construct, operate and maintain, and from time to time to reconstruct, additional electric and communication lines of any type necessary for the convenient transaction of the business of PPL upon, across, over, under, and within the said strip(s) of land.
 This Grant of Public Utility Easement shall be binding on GRANTOR and PPL and his/her/their/its heirs, executors, administrators, successors and/or assigns.
 

 In Witness Whereof, said GRANTOR has caused this  agreement to be  executed  in  its  corporate
 name by its proper officers, this     day of March, 2013.
 

 Blue Ridge Real Estate Company
 
 WITNESS:
 GRANTOR

 	 	
	 

	 By: 

	 

	 Name:

	 

	 Title:

   

 

 

 
  

 Commonwealth of Pennsylvania
 )
 : SS
 County of
      
 )
 

 On this        day of      , 20  , before me, personally appeared     who acknowledged himself/herself to be the      of      And that he/she as such     , being authorized  to do so, executed the foregoing instrument for the purposes stated therein. 
 In Witness Whereof, I have hereunto set my hand and notarial seal.
 ___________________________________     
 Notary Public
  

 
  
EXHIBIT “C”
 

 

 
 

 
 
 

 

 
 ACAHELA-POCONO LINE RIGHT-OF-WAY
 TO BE CONDEMNED OVER PROPERTY OF
 BLUE RIDGE REAL ESTATE COMPANY
 Beginning at a point, said point being located at the intersection of the proposed centerline of electric line in the Southerly division line of lands of Blue Ridge Real Estate Company (DB 1497, PO 529) and lands now or formerly of PPL Electric Utilities Corporation (DB 3011, PO 230906). 
 Thence along said dividing line, North sixty-seven degrees two minutes seven seconds West (N 67° 02 '07" W) seventy-six and fifty-nine one hundredths feet (76.59') more or less to a point. 
 Thence through lands of Blue Ridge Real Estate Company, running parallel to and at a distance of seventy-five feet (75') perpendicular from the centerline of proposed electric line, the following three (3) courses and distances: 1. North thirty-four degrees forty minutes fifteen seconds West (N 34° 40' 15" E) four thousand six hundred seven and eighty-four one hundredths feet (4,607.84') more or less to a point. 2. North seventy-seven degrees twenty-nine minutes ten seconds East (N 77° 29' 10” E) five thousand one hundred eighty-six and twenty-six one hundredths feet (5,186.26') more or less to a point. 3. North twenty-one degrees thirty-two minutes two seconds East (N 21 °32 '02" E) one thousand thirty-eight and twenty-nine one hundredths feet (1,038.29') more or less to a point in the center of Choke Creek, said point also being in the Northerly division line of lands of Blue Ridge Real Estate Company and lands now or formerly of Commonwealth of Pennsylvania. 
 Thence along said division line, the following five (5) courses and distances: 1. South fifty-three degrees fifty minutes fourteen seconds East (S 53° 50' 14" E) fifty-five and thirty-three one hundredths feet (55.33') more or less to a point. 2. Crossing the proposed centerline of electric line at a distance of twenty-four and eighty-three one hundredths feet (24.83') more or less, South thirty-eight degrees seventeen minutes forty-three seconds East (S 38°17' 43" E) fifty-one and sixty-six one hundredths feet (51.66') more or less to a point. 3. South two degrees fifty-three minutes fifty seconds West (S 02° 53' 50" W) forty-five and eighty-three one hundredths feet (45.83') more or less to a point. 4. South twenty-seven degrees twenty-four minutes thirty seconds West (S 27° 24' 30" W) forty-seven and sixty-two one hundredths feet (47.62') more or less to a point. 5. South nineteen degrees forty-five minutes twenty-nine seconds East (S 19° 45' 29" E) sixty-three and seventy one hundredths feet (63.70') more or less to a point. 
 Thence through lands of Blue Ridge Real Estate Company, running parallel to and at a distance of seventy-five (75') perpendicular 
 

 
 from the centerline of proposed electric line, the following three (3) courses and distances: 1. South twenty-one degrees thirty-two minutes two seconds West (S 21° 32' 02" W) nine hundred thirty-nine and thirty-seven one hundredths feet (939.37') more or less to a point. 2. South seventy-seven degrees twenty-nine minutes ten seconds West (S 77° 29' 10" W) five thousand two hundred seven and twelve one hundredths feet (5,207.12') more or less to a point. 3. South thirty-four degrees forty minutes fifteen seconds West (S 34° 40' 15" W) four thousand five hundred seventeen and ninety-five one hundredths feet (4,517.95') more or less to a point in the aforesaid Southerly dividing line of lands of Blue Ridge Real Estate Company and lands now or formerly of PPL Electric Utilities Corporation. 
 Thence along said dividing line, North sixty-seven degrees two minutes seven seconds West (N 67° 02' 07" W) seventy-six and fifty-nine one hundredths feet (76.59') more or less to a point. The Point of Beginning. 
 Said Easement containing thirty-seven and thirteen one hundredths Acres (37.13+/- Acs.) more or less as shown on PPL drawing No. C393182 prepared by PPL Electric Utilities entitled "PLAN SHOWING ELECTRIC LINE RIGHT-OF-WAY TO BE CONDEMNED OVER PROPERTY OF BLUE RIDGE REAL ESTATE COMPANY". 
 Bearings and distances described are based upon the centerline of the proposed electric line as surveyed by PPL Electric Utilities. 

  

 

 
 JENKINS-ACAHELA LINE RIGHT-OF-WAY 
 TO BE CONDEMNED OVER PROPERTY OF
 BLUE RIDGE REAL ESTATE COMPANY
 Last revised March 20, 2013
 Beginning at a point, said point being located at the intersection of the proposed centerline of electric line in the Southerly division line of lands of Blue Ridge Real Estate Company (DB 1497, PG 529) and lands now or formerly of PPL Electric Utilities Corporation (DB 3011, PG 230906). 
 Thence along said dividing line, the following two (2) courses and distances: 1. North sixty-seven degrees two minutes seven seconds West (N 67° 02 '07" W) one hundred sixty-two and eighty-five one hundredths feet (162.85') more or less to a point. 2. South twenty-two degrees forty-three minutes ten seconds West (S 22° 43' 10" W) thirteen and ninety-six one hundredths feet (13.96') more or less to a point. 
 Thence through lands of Blue Ridge Real Estate Company, running parallel to and at a distance of seventy-five feet (75') perpendicular from the centerline of proposed electric line, the following three (3) courses and distances: 1. North forty-four degrees thirty-six minutes forty-six seconds West (N 44° 36' 46" W) four hundred forty-three and zero one hundredths feet (443.00') more or less to a point. 2. North four degrees twenty-seven minutes seven seconds West (N 04° 27' 07" W) five thousand eight hundred eleven and two one hundredths feet (5,811.02') more or less to a point. 3. North sixty-one degrees forty-two minutes sixteen seconds West (N 61° 42' 16" W) sixty-nine and fifty one hundredths feet (69.50') more or less to a point in the Westerly division line of lands of Blue Ridge Real Estate Company and lands now or formerly of Commonwealth of Pennsylvania, State Gamelands 91. 
 Thence along said division line, North three degrees fifty-six minutes nine seconds West (N 03° 56' 09" W) thirty-nine and seventy-six one hundredths feet to a point. 
 Thence along said division line, crossing the proposed centerline of electric line at a distance of seventy-seven and five one hundredths feet (77.05') more or less, North eight-five degrees forty-nine minutes thirty-one seconds East (N 85° 49' 31" E) two hundred eight and ten one hundredths feet (208.10') more or less to a point. 
 

 

 
 Thence through lands of Blue Ridge Real Estate Company, running parallel to and at a distance of seventy-five (75') perpendicular from the centerline of proposed electric line, the following two (2) courses and distances: 1. South four degrees twenty-seven minutes seven seconds East (S 04° 27' 07" E) five thousand eight hundred thirty-two and fifty-four one hundredths feet (5,832.54') more or less to a point. 2. South forty-four degrees thirty-six minutes forty-six seconds East (S 44° 36' 46" E) seven hundred fifteen and eight one hundredths feet (715.08') more or less to a point in the aforesaid Southerly dividing line of lands of Blue Ridge Real Estate Company and lands now or formerly of PPL Electric Utilities Corporation. 
 Thence along said dividing line, North sixty-seven degrees two minutes seven seconds West (N 67° 02' 07" W) one hundred ninety-six and sixty-three one hundredths feet (196.63') more or less to a point. The Point of Beginning. 
 Said Easement containing twenty-two and twenty one hundredths Acres (22.20+/- Acs.) more or less as shown on PPL drawing No. C393182 prepared by PPL Electric Utilities entitled "PLAN SHOWING ELECTRIC LINE RIGHT -OF- WAY TO BE CONDEMNED OVER PROPERTY OF BLUE RIDGE REAL ESTATE COMPANY". 
 Bearings and distances described are based upon the centerline of the proposed electric line as surveyed by PPL Electric Utilities. 
 ALSO, a sixteen foot (16.0)' wide permanent access easement and including two temporary parallel seventeen foot wide (17’) construction easements to be extinguished once the power line has been completed, to the above described Right-of-Way, over lands of Blue Ridge Real Estate Company (DB 1497, PG. 529) as shown on the above referenced plan, the Centerline of the access easement being bounded and described as follows to wit: 
 Beginning at a point, said point being located in the Southerly division line of lands of Blue Ridge Real Estate Company and the northerly right-of-way of Buck River Road, as shown on the abovementioned plan. 
 Thence through lands of Blue Ridge Real Estate Company, generally along the centerline of the existing access road the following twenty-one (21) courses and distances. 
 

 

 
  

 1.
 North eighteen degrees twenty minutes forty-five seconds West (N 18° 20' 45" W) seventy-one and thirty-eight one hundredths feet (71.38') to a point. 
 
 2. 
 North five degrees six minutes thirty-five seconds West (N 05° 06' 35" W) one hundred eighty-nine and eight one hundredths feet (189.08') to a point. 
 
 3. 
 North fifty-nine degrees fifty-one minutes twelve seconds West (N 59° 51' 12" W) three hundred seventy-nine and four one hundredths feet (379.04') to a point. 
 
 4. 
 North thirty-one degrees forty minutes five seconds West (N 31° 40' 05" W) eighty-one and three one hundredths feet (81.03') to a point. 
 
 5. 
 North three degrees forty-one minutes twelve seconds West (N 03° 41' 12" W) three hundred forty-two and ninety-two one hundredths feet (342.92') to a point. 
 
 6. 
 North fifty-two degrees forty-seven minutes thirty-one seconds West (N 52° 47' 31" W) one hundred forty- four and ninety-one one hundredths feet (144.91') to a point. 
 
 7. 
 North four degrees seven minutes fifty-one seconds East (N 04° 07' 51" E) three hundred eighty-five and seventy-two one hundredths feet (385.72') to a point. 
 
 8. 
 North twenty-seven degrees forty-seven minutes forty seconds West (N 27° 47' 40" W) ninety-two and ten one hundredths feet (92.10') to a point. 
 
 9.
 North sixty-two degrees fourteen minutes forty-five seconds West (N 62° 14' 45" W) four hundred fifty-three and eighty-two one hundredths feet (453.82') to a point. 
 
 10. 
 North eighty-five degrees fourteen minutes eleven seconds West (N 85° 14' 11" W) one hundred two and ninety-five one hundredths feet (102.95') to a point. 
 
 11. 
 North seventy-four degrees thirty-one minutes eleven seconds West (N 74° 31' 11" W) seven hundred fifty-four and thirty-three one hundredths feet (154.33') to a point. 
 
 12. 
 North forty-two degrees eight minutes fifteen seconds West (N 42° 08' 15" W) one hundred forty-five and eighty-five one hundredths feet (145.85') to a point. 
 
 13. 
 North seventy-two degrees forty-eight minutes one second West (N 72° 48' 01" W) three hundred ninety-one and seventy-three one hundredths feet (391.73') to a point. 
 
 14. 
 North fifty-nine degrees fifty-six minutes twenty-three seconds West (N 59° 56' 23" W) one hundred thirty-eight and eighty-nine one hundredths feet (138.89') to a point. 
 
 15.
 South eighty-two degrees fourteen minutes five seconds West (S 82° 14' 05" W) one hundred fourteen and thirty-five one hundredths feet (114.35') to a point. 
 
 16. 
 North seventy-five degrees fifteen minutes twenty-three seconds 
 

 
 West (N 75° 15' 23" W) one hundred one and nineteen one hundredths feet (101.19') to a point. 
 
 17. 
 North fifty-two degrees thirty-five minutes forty-one seconds West (N 52° 35' 41" W) one hundred ten and twenty-two one hundredths feet (110.22') to a point. 
 
 18. 
 North seventy-three degrees zero minutes thirty-four seconds West (N 73° 00' 34" W) one hundred sixty-three and fourteen one hundredths feet (163.14') to a point. 
 
 19. 
 North sixty-three degrees fifty-two minutes thirty-four seconds 
 West (N 63° 52' 34" W) six hundred sixty-three and seventy-two one hundredths feet (663.72') to a point. 
 
 20. 
 North eighty-one degrees thirty-seven minutes thirty-eight seconds West (N 81° 37' 38" W) four hundred seventeen and thirty-five one hundredths feet (417.35') to a point. 
 
 21. 
 North sixty-six degrees eight minutes forty seconds West (N 66° 08' 40" W) six hundred seventy-three and eighty-four one hundredths feet (673.84') to a point in the centerline of the above described Right-of-Way. 
 The above described centerline having a total length of five thousand nine hundred nineteen feet (5,919') more or less.Exhibit 4.12 Purchase & Sale Agreement

Exhibit 4.12

PURCHASE AND SALE AGREEMENT

THIS PURCHASE AND SALE AGREEMENT (this "Agreement") is made and entered into on December 28, 2012, by and between MASLAND CARPETS, LLC ("Seller"), a Georgia limited liability company, and the DEVELOPMENT AUTHORITY OF GORDON COUNTY ("Buyer"), a Georgia public body corporate and politic.

WI T N E S S E T H:

WHEREAS, Seller is the owner of several carpet-dyeing buildings (the "Improvements"), located on an approximately 46.44 acre site, more particularly described in Exhibit A attached hereto, in Gordon County, Georgia (the "Site"), and related equipment more particularly described in Exhibit B attached hereto (the "Equipment"), which Seller proposes to sell to Buyer pursuant to this Agreement; and

WHEREAS, Buyer will obtain funds to purchase the Site, the Improvements, and the Equipment (collectively the "Facilities") from Seller by obtaining a loan (the "Loan")  from Masland Carpets, LLC (the "Lender"), pursuant to the Loan Agreement,  dated  this  date  (the "Loan Agreement"),  between  Buyer and the Lender;

NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the parties hereby agree as follows:

ARTICLE I
PURCHASE AND SALE

		
	1.1
	Agreement to Sell and Purchase the Facilities.   Seller hereby agrees to  sell and convey to Buyer, and Buyer hereby agrees to purchase  and take from Seller, subject to and in accordance with all of the terms and conditions of this Agreement, the Facilities.

		
	1.2
	Purchase  Price.  The purchase price for the  Facilities (the "Purchase Price") shall be $5,339,217.03. The Purchase Price shall be paid by Buyer to Seller on the Closing Date, by wire delivery of funds through the Federal Reserve System to an account designated in writing by Seller or by the exchange of indebtedness of Buyer to Seller for the property being purchased.

		
	1.3
	Closing. The closing of the purchase and sale of the Facilities (the "Closing") shall be held at the offices of Buyer on December 28, 2012 (the "Closing Date").

		
	1.4
	Access and Inspection; Delivery of Documents and Information by Seller.

(a)Between the date of this Agreement and the Closing Date, Buyer and Buyer's agents and designees shall have the right to enter the Facilities for the purposes of inspecting the Facilities, conducting tests, and making surveys and any  other investigations and inspections (collectively  the "Inspections") as Buyer may reasonably  require to assess the condition  of the facilities; 

1

provided, however, that such activities by or on behalf of Buyer on the Facilities shall not materially damage the Facilities or interfere with Seller's lawful use of the Facilities.

(b) On or before the date one (I) day prior to the Closing Date, Seller shall deliver to Buyer, if not previously delivered, or make available to Buyer for examination or copying by Buyer, at the address for Buyer set forth below Buyer's execution of this Agreement,  the following documents and information with respect to the Facilities (collectively the "Facilities Information"): (i) all surveys, environmental, engineering, and mechanical data relating to the Facilities, and reports such as soils reports and environmental audits, which are in Seller's possession or which Seller can obtain with reasonable effort; and (ii) a copy of any policy of title insurance issued in favor of Seller, together with legible copies of all instruments referenced therein. All of the Facilities Information provided to Buyer or to any third party shall be and is provided without warranty as to any of the matters set forth therein, and Buyer hereby acknowledges and agrees that no warranties, either express or implied, shall be deemed to have been given or made by Seller, its agents, employees, or representatives as to the content, authenticity, truthfulness, correctness, or otherwise with respect to any of the Facilities Information. In the event the Closing hereunder does not occur for any reason, Buyer agrees to return to Seller all of the Facilities Information.

		
	1.5 
	Title. Seller covenants to convey to Buyer at the Closing good and marketable fee simple title in and to the Facilities by limited warranty deed and bill of sale. For the purposes of this Agreement, "good and marketable  fee simple title" shall mean  fee simple ownership that is: (i) free of all claims, liens, and encumbrances of any kind or nature whatsoever other than the Permitted Exceptions, herein defined; and (ii) insurable by a title insurance company reasonably acceptable to Buyer, at then current standard rates under the standard form of ALTA owner's policy of title insurance (ALTA Form 2006), with the  standard or printed exceptions therein deleted and without exception other than for the Permitted Exceptions. For the purposes of this Agreement, the term "Permitted Exceptions" shall mean: (A) current city, state, and county ad valorem taxes not yet due and payable; (B) all easements, restrictions, reservations, and rights­ of-way of record serving the Facilities; and (C) any matters revealed by the title commitment or survey.

		
	1.6
	Proceedings  at  Closing.  On the Closing Date, the Closing shall take place as follows:

(a)Seller shall deliver to Buyer a Limited Warranty Deed to the Facilities, in recordable form, and such other documents as are customary or reasonably required by the title company and Buyer in such form as is reasonably approved by Buyer in order to ensure Buyer has good and marketable fee simple title to the Facilities.

(b)    Seller shall deliver to Buyer a Bill of Sale and Assignment to the Equipment and such other documents as are customary or reasonably required by Buyer in such form as is reasonably approved by Buyer in order to ensure Buyer has good and merchantable title to the Equipment.

(c)    Buyer shall pay the Purchase Price to Seller in accordance with the provisions of this Agreement.

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1.7    Costs of Closing.  All costs and expenses of the transactions contemplated hereby shall be paid by Seller.

1.8    Warranties, Representations, and Additional Covenants of Seller.

(a)Seller represents and warrants to Buyer, knowing that Buyer is relying on each such representation and warranty, that:

(1)     There are no actions, suits, or proceedings pending or threatened against, by, or affecting Seller that affect title to the Facilities or that question the validity or enforceability of this Agreement as to Seller or of any action taken by Seller under this Agreement, in any court or before any governmental authority, domestic or foreign.

(2)    To the best of Seller's knowledge and belief, there are no violations or potential violation of, any zoning, building, health, environmental, or other laws, codes, ordinances, regulations, orders, or requirements of any city, county, state, or other governmental authority having jurisdiction  thereof, or any private restrictive covenants affecting the Facilities.

(3)    There are no pending, threatened, or contemplated condemnation actions involving all or any portion of the Facilities or any interest therein, and, to the best of Seller's knowledge and belief, there are no existing, proposed, or contemplated plans to widen, modify, or realign any public rights-of-way located adjacent to any portion of the Site.

(4)    There are no leases or other agreements for use, occupancy, or possession presently in force with respect to all or any portion of the  Facilities other than the Permitted Exceptions.

(b)Seller covenants with Buyer that:

(1)    Between the date hereof and the Closing Date, without the prior written approval of Buyer, Seller shall not, except for Permitted Exceptions, (A) make or enter into any lease or other agreement for the use, occupancy, or possession of all or any part of the Facilities or (B) encumber the Facilities, unless such lease, other agreement, or encumbrance is terminated on or before the Closing Date as to the Facilities.

(2)    On or before the Closing Date, Seller shall cause the Facilities to be released from any and all liens, monetary encumbrances, and security interests arising by, through, or under Seller other than (A) real estate ad valorem taxes and assessments for the current year and all subsequent years thereafter and (B) Permitted Exceptions.

(3)    On the Closing Date there will be no indebtedness arising by,  through,  or under Seller to any contractor, laborer, mechanic, materialman, architect, engineer, or any other person for work, labor, or services performed or rendered, or for materials supplied or furnished, in connection with the Facilities for which any such person could claim a lien against the Facilities, unless Seller has provided Buyer with reasonable indemnification or title insurance with respect to such claim of lien.

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Seller acknowledges and agrees that no examination or investigation of the Facilities by or on behalf of Buyer prior to the Closing shall in any way modify, affect, or diminish Seller's obligations under the representations, warranties, covenants, and agreements set fo1th in this Agreement. Except for the specific representations, warranties, and covenants set fo1th in this Section 1.8, Seller is conveying the Facilities "AS IS, WHERE IS, AND WITH ALL FAULTS," and Buyer assumes the risk that adverse physical characteristics and existing conditions may not have been revealed by the Inspections. The representations, warranties, and additional covenants of Seller set forth in this Section 1.8 shall survive the Closing for a period of one (I) year from the Closing Date.

1.9    Conditions   of   Buyer's   Obligations.    Buyer's obligations to consummate the purchase and sale of the Facilities on the Closing Date shall be subject to the satisfaction or performance of the following terms and conditions, any one or more of which may be waived in writing by Buyer, in whole or in part, on or as of the Closing Date:

(a)    Seller shall have fully and  completely  kept,  observed,  performed,  satisfied, and complied with all terms, covenants, conditions, agreements, requirements, restrictions, and provisions required by this Agreement to be kept, observed, performed, satisfied, or complied with by Seller before, on, or as of the Closing Date;

(b)    the representations and warranties of Seller in this Agreement (and the substantive facts contained in any representations and warranties limited to Seller's knowledge and belief) shall be true and correct in all material  respects, and certified by Seller to Buyer as such, on and as of the Closing Date, in the same manner and with the same effect as though such representations and warranties had been made on and as of the Closing Date; and

(c)    Buyer shall have obtained the Loan and shall have sufficient unspent proceeds from the Loan to pay the Purchase Price due on the Closing Date.

If any of the foregoing conditions have not been satisfied or performed or waived in writing by Buyer on or as of the Closing Date, Buyer shall have the right, at Buyer's option, either: (i) to postpone the Closing scheduled for the Closing Date, by giving written notice to Seller on or before the Closing Date, in which event the Closing shall be postponed until such time as the foregoing conditions have been satisfied or performed or waived in writing by Buyer; or (ii) if such failure of condition constitutes a breach of representation  or warranty by Seller, constitutes a failure by Seller to perform any of the terms, covenants, conditions, agreements, requirements, restrictions, or provisions of this Agreement, or otherwise constitutes a default by Seller under this Agreement, to exercise such rights and remedies as may be provided for in Section 1.11 of this Agreement.

1.10    Possession at Closing. Seller shall surrender possession of the Facilities to Buyer on the Closing Date.

1.11    Remedies. If (i) any representation or warranty of either party set forth in this Agreement shall prove to be untrue or incorrect in any material respect; or (ii) either party shall fail to keep, observe, perform, satisfy, or comply with, fully and completely, any of the terms, covenants,  conditions,  agreements,  requirements,  restrictions,  or  provisions  required   by  this Agreement to be kept, observed, performed, satisfied, or complied with by such patty; or (iii) the purchase and sale of the Facilities is otherwise not consummated in accordance with the terms and provisions of this Agreement due to circumstances or 

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conditions that constitute a default by either party under this Agreement (the matters described in the foregoing clauses (i), (ii), and (iii) are herein sometimes collectively called "Defaults"), then the other party may, in its sole discretion and as its sole and exclusive remedy as a result of any Defaults, enforce this Agreement and the purchase and sale transactions contemplated herein by specific performance. Each party hereby expressly waives any right to seek or obtain any monetary judgment  or damages against the other party in the event of any Defaults and acknowledges and agrees that no other damages, rights, or remedies shall be collectible, enforceable, or available to such party.

1.12    Risk of Loss and Insurance. Between the date of this Agreement and the Closing Date, the risks and obligations of ownership and loss of the Facilities and the correlative rights against insurance carriers and third parties shall belong to Seller. In the event of the damage or destruction of any portion of the Facilities prior to the Closing Date, Buyer shall have the right, at Buyer's option, to postpone the Closing scheduled for the Closing Date, by  giving written notice to Seller prior to the Closing Date,  in which event the Closing shall be postponed until such time as the Facilities shall be restored, repaired, or replaced to their condition immediately preceding such damage or destruction.

1.13    Condemnation. In the event of the taking of all or any part of the Facilities, or any interest therein, by eminent domain proceedings, or the commencement  or bona fide threat of the commencement  of any such proceedings, prior to the Closing, Buyer shall have the right, at Buyer's option, to cancel the Closing, by giving written notice thereof to Seller prior to the Closing, in which event the Closing shall be cancelled. If Buyer does not so cancel the Closing, the Purchase Price shall be reduced by the total of any awards or other proceeds received by Seller prior to Closing with respect to any taking, and, at Closing, Seller shall assign to Buyer all rights of Seller in and to any awards or other proceeds to be paid or to become payable after Closing by reason of any taking. Seller shall notify Buyer of eminent domain proceedings within five (5) days after Seller has notice thereof.

1.14    Broker  and  Commission.  All negotiations relative to this Agreement and the purchase and sale of the Facilities as contemplated by and provided for in this Agreement have been conducted by and between Seller and Buyer without the intervention of any person or other party as agent or broker. Seller and Buyer warrant and represent to each other that Seller and Buyer have not entered into any agreement or arrangement and have not received services from any broker or broker's employees or independent contractors that would give rise to any claim of lien or lien against the Facilities, and there are and will be no broker's commissions or fees payable in connection with this Agreement or the purchase and sale of the Facilities by reason of their respective dealings, negotiations, or communications.

1.15    Further Assurances; Survival. At the Closing, and from time to time thereafter, Seller shall do all such additional and further acts, and shall execute and deliver all  such additional and further deeds, affidavits, instruments, certificates, and documents, as Buyer or any title insurer may  reasonably require fully to vest in and assure to Buyer full right, title, and interest in and to the Facilities to the full extent contemplated by this Agreement and otherwise to effectuate the purchase and sale of the Facilities as contemplated by and provided for in this Agreement. All the prov1s1ons of this Article I (including, without limitation, the representations, covenants, and warranties of Seller as set forth in this Agreement) shall survive the consummation of the purchase and sale of the Facilities on the Closing Date, the delivery of the deed to Buyer, and the payment of the Purchase Price for a period of one (I) year from the Closing Date.

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ARTICLE II

GENERAL PROVISIONS

2.1    Notices.   Whenever any notice, demand, or request  is required  or permitted  under this Agreement, such notice, demand, or request shall be in writing and shall be delivered by hand, be sent by registered or certified mail, postage prepaid, return receipt requested, or be sent by nationally recognized commercial courier for next business day delivery, to the addresses set forth below their respective executions hereof, or to such other addresses as are specified by written notice given in accordance herewith, or shall be transmitted by facsimile to the number for each party set forth below their respective executions hereof, or to such other numbers as are specified by written notice given in accordance herewith. All notices, demands, or requests delivered by hand shall be deemed given upon the date so delivered; those given by mailing as hereinabove provided shall be deemed given on the date of deposit in the United States Mail; those given by commercial courier as hereinabove provided shall be deemed given on the date of deposit with the commercial courier; and those given by facsimile shall be deemed given on the date of facsimile transmittal. Nonetheless, the time period, if any, in which a response to any notice, demand, or request must be given shall commence to run from the date of receipt of the notice, demand, or request by the addressee thereof. Any notice, demand, or request not received because of changed  address or facsimile number of which no notice was given as hereinabove provided or because of refusal to accept delivery shall be deemed received by the party to whom addressed on the date of hand delivery, on the date of facsimile transmittal, on the first calendar day after deposit with commercial courier, or on the third calendar day following deposit in the United States Mail, as the case may be.

2.2    Limited Obligations. It is understood and agreed that in the performance of the agreements of Buyer herein contained, any obligation it may thereby incur for the payment of money shall not constitute a general obligation of Buyer but shall be a limited obligation of Buyer payable solely out of the proceeds of the Loan, and no recourse shall be had or claim shall be made against any other assets, properties, or revenues of Buyer to satisfy any obligations of Buyer under this Agreement.

2.3    Facsimile   as   Writing.    The parties expressly acknowledge and agree that, notwithstanding any statutory or decisional law to the contrary, the printed product of a facsimile transmittal shall be deemed to be "written" and a "writing" for all purposes of this Agreement.

2.4    Assignment; Parties. This Agreement may not be assigned by Buyer, in whole or in part, without the prior written consent of Seller, which consent may be withheld in the sole and absolute discretion of Seller. This Agreement may be assigned by Seller, in whole or in part, without the prior written consent of Buyer, but with prior written notice to Buyer of such assignment  and  the  identity  of  the  assignee.    This  Agreement  shall  be  binding  upon  and enforceable  against,  and  shall  inure  to  the  benefit  of,  Buyer  and  Seller and  their  respective successors and assigns.

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2.5    Headings. The use of headings, captions, and numbers in this Agreement is solely for the convenience of identifying and indexing the various provisions in this Agreement  and shall in no event be considered otherwise in construing or interpreting any provision in this Agreement.

2.6    Exhibits. Each and every exhibit referred to or otherwise mentioned in this Agreement is attached to this Agreement and is and shall be construed to be made a part of this Agreement by such reference or other mention at each point at which such reference or other mention occurs, in the same manner and with the same effect as if each exhibit were set fo1th in full and at length every time it is referred to or otherwise mentioned.

2.7    Defined Terms. Capitalized terms used in this Agreement shall have the meanings ascribed to them at the point where first defined, irrespective of where their use occurs, with the same effect as if the definitions of such terms were set forth in full and at length every time such terms are used.

2.8    Pronouns. Wherever appropriate in this Agreement, personal pronouns shall be deemed to include the other genders and the singular to include the plural.

2.9    Severability. If any term, covenant, condition, or provision of this Agreement, or the application thereof to any person or circumstance, shall ever be held to be invalid or unenforceable, then in each such event the remainder of this Agreement or the application of such term, covenant, condition, or provision to any other person or any other circumstance (other than those as to which it shall be invalid or unenforceable) shall not be thereby affected, and each term, covenant, condition, and provision  hereof shall remain valid and enforceable to the fullest extent permitted by law.

2.10    Non-Waiver. Failure by any party to complain of any action, non-action,  or breach of any other party shall not constitute a waiver of any aggrieved party's rights hereunder. Waiver by any party of any right arising from any breach of any other party shall not constitute a waiver of any other right arising from a subsequent breach of the same obligation or for any other default, past, present, or future.

2.11    Time of Essence; Dates. Time is of the essence of this Agreement. If any date set forth in this Agreement shall fall on, or any time period set forth in this Agreement shall expire on, a day that is a Saturday, Sunday, federal or state holiday, or other non-business day, such date shall automatically be extended to, and the expiration  of  such  time  period  shall automatically be extended to, the next day that is not a Saturday,  Sunday,  federal  or  state holiday, or other non-business day.

2.12    Applicable  Law. This Agreement shall be governed by, construed under, and interpreted and enforced in accordance with the laws of the State of Georgia.

2.13    Entire  Agreement;   Modification. This Agreement supersedes all prior oral or written  discussions and agreements between  Seller and Buyer with respect to the purchase and sale of the Facilities and other 

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matters contained herein, and this Agreement contains the sole and entire understanding between Seller and Buyer with respect thereto.  This Agreement shall not be modified or amended except by an instrument in writing executed by or on behalf of Seller and Buyer.

2.14    Counterparts. This Agreement may be executed in several counterparts, each of which shall be deemed an original, and all of such counterparts together shall constitute one and the same instrument.

[Signatures and Seals to Follow]

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 IN WITNESS WHEREOF, the parties have caused their duly authorized representatives to execute, seal, and deliver this Agreement, all as of the day and year first written above.

SELLER:

MASLAND CARPETS, LLC

By: /s/ Jon A. Faulkner   (SEAL)
Jon A. Faulkner, President

Initial address for notices:

2208 South Hamilton Street Extension 
Dalton, Georgia 30721
Telecopy:

[SIGNATURES CONTINUE ON FOLLOWING  PAGE]

 
 

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BUYER:

DEVELOPMENT AUTHORITY OF GORDON COUNTY

By: /s/ Larry Roye        
Chairman

Initial address for notices: 
300 South Wall Street
Calhoun, Georgia 3070 l Telecopy: (706) 625-5062 Attention: President

ATTEST:

/s/ Ray Towers         
Secretary     (SEAL)

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EXHIBIT "B" 
DESCRIPTION  OF THE EQUIPMENT
[Attached]

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14

 
  

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