Loading...
HomeMy WebLinkAboutHairpin Ranch_Purchase and Sale Agreement_FINAL_1.16.20PURCHASE AND SALE AGREEMENT (Hairpin Ranch Conservation Easement) This PURCHASE AND SALE AGREEMENT ("Agreement") is entered into by and among KITTITAS COUNTY, a political subdivision of the State of Washington ("County"), having an address of 205 West 5"' Avenue, Ellensburg, WA 98926, and FORTERRA NW, a Washington nonprofit corporation, its successors or assigns ("Forterra") having an address of 901 50' Ave, Suite 2200, Seattle, WA 98164 (collectively, "Buyer"), and Brent Minor and Mary Minor, a married couple (collectively, "Seller"), having an address of 8001 Naneum Road, Ellensburg, WA 98926, as of the first date on which the County, Forterra and Seller have all signed this Agreement ("Effective Date"). Buyer and Seller may be referred to herein individually as "Party" and collectively as the "Parties." RECITALS A. Seller owns certain real property commonly known as "Hairpin Ranch," also formerly known as "Rader Road Ranch," located along Naneum Creek, in Kittitas County, Washington, as more particularly described in this Agreement. B. Buyer desires to purchase a conservation easement on said real property owned by Seller, as hereinafter defined, for the purpose of protecting the agricultural conservation values of the property, on the terms and conditions set forth in this Agreement. C. County has adopted Comprehensive Plan GPO 2.1 with the goal to maintain and enhance County's natural resource industry base, including but not limited to productive agriculture resources. County is exempt from taxation. D. Forterra is a conservation organization having among its purposes the acquisition of open space and critically important ecological systems in King, Snohomish, Pierce, Kittitas and Mason counties and surrounding communities. Forterra is exempt from taxation under Section 501(c)(3) of the Internal Revenue Code of 1986 (as amended from time to time, the "Code") and is included in the "Cumulative List of Organizations" described in Section 170(c) of the Internal Revenue Code published by the Internal Revenue Service. Forterra is not a private foundation within the meaning of Section 509(a) of the Code. E. County and Forterra will steward the conservation easement on said real property according to the terms and conditions of the Conservation Easement and Funding Sources, as defined below. F. Seller acknowledges that upon granting the conservation easement, as defined below, to Buyer, Buyer shall be free to transfer any such easement interest, for any price Buyer deems appropriate, to any subsequent buyer qualified under state and federal law as a holder of conservation easements, subject to the terms, conditions, and stewardship obligations set forth in the Conservation Easement. Page 1 of 20 G. Seller desires to sell to Buyer, and Buyer desires to purchase from Seller, the Conservation Easement, as defined below, on the terms and conditions set forth in this Agreement. AGREEMENT Intending to be legally bound, for good and valuable consideration, including the mutual covenants and promises of the Parties, the adequacy and receipt of which is hereby acknowledged, the Parties agree as follows: 1. Property. The property subject to the conservation easement in this Agreement is that certain real property consisting of approximately 274 acres, more or less, comprised of 37 tax assessed parcels, having a street address of 8001 Naneum Road, located along Naneum Creek, in Ellensburg, Kittitas County, Washington and more particularly described in Exhibit A attached and incorporated by reference (the "Property"). 2. Purchase. Seller shall sell and convey to Buyer, and Buyer shall purchase from Seller, a conservation easement on the Property, on the terms and conditions set forth in this Agreement, in substantially the form attached as Exhibit B and incorporated by reference (the "Conservation Easement"). Prior to Closing, Buyer and Seller may make changes to the Conservation Easement as they mutually deem appropriate, subject to approval of the Funding Sources, as defined below. 3. Purchase Price. The purchase price for the Conservation Easement shall be One Million Six Hundred Eighty -Nine Thousand and No/100 Dollars ($1,689,000.00) ("Purchase Price"), payable by Buyer to Seller at Closing. Buyer intends to purchase the Conservation Easement using funds from State Grant Award 16-1634A, administered through the Washington State Recreation and Conservation Office ("RCO") and Federal Grant Award #N5319ALE00100132, administered through the United States Department of Agriculture Natural Resources Conservation Service ("NRCS") (collectively, "Funding Sources"). Seller acknowledges and agrees that the Funding Sources, as a condition to providing grant funds, shall have an enforceable interest in the Conservation Easement upon Closing. 4. Title. 4.1. Condition of Title. Title shall be insurable by a 2006 ALTA Owner's Standard Coverage Policy in the amount of the Purchase Price, subject only to the Permitted Exceptions, as defined below. Seller shall satisfy all requirements of the Title Company in connection with issuance of its title policy (the "Title Policy") in accordance with the Commitment. 4.2. Title Insurance Commitment. Buyer has obtained a title insurance commitment issued by AmeriTitle as agent for Chicago Title Insurance Company (the "Title Company" or "Escrow Holder"), File Number 265429AM, dated October 16, 2018, and including any updates, showing marketable title to the Property to be vested in Seller and committing to insure such title in Buyer by the issuance of a 2006 ALTA Owner's Standard Coverage Policy of Page 2 of 20 title insurance in the amount of the Purchase Price and including any policy endorsements required by Buyer (the "Title Commitment"). 4.3. Review of Title. Buyer shall have until the end of the Contingency Period, as defined below, to notify Seller in writing of any objection Buyer in its sole discretion may have to any exceptions shown on the Title Commitment. General taxes due after Closing and those exceptions disclosed in the Title Commitment that Buyer does not disapprove shall constitute permitted exceptions ("Permitted Exceptions"). Seller, at its sole cost and expense, shall remove all exceptions other than Permitted Exceptions. Seller shall immediately notify Buyer of any liens, leases, encumbrances, easements, restrictions, conditions, covenants, rights-of-way and other matters affecting title to the Property that are created and which may appear of record or be revealed by survey or otherwise after the date of the Commitment but before the Closing (collectively, "Intervening Exceptions"). Intervening Exceptions shall be subject to Buyer's approval and Buyer shall have ten (10) Business Days after notice in writing of any Intervening Exception, together with a description thereof and a copy of the instrument creating or evidencing the Intervening Exception, if any, to either accept it (whereupon the Intervening Exception shall be a Permitted Exception) or submit written objection. Seller will promptly remove all Intervening Exceptions that do not become Permitted Exceptions. 5. Conditions Precedent. 5.1. Conditions to Purchase. Buyer's obligations with respect to purchase of the Conservation Easement and the Closing are subject to fulfillment by the Closing Date, or earlier waiver by Buyer, of the conditions precedent described below ("Conditions Precedent"). (a) Title Policy. All requirements set forth in the Title Commitment shall have been satisfied or waived by the Title Company and the Title Company shall be prepared to issue the Title Policy. (b) Moratorium. No reassessment, reclassification, rezoning or other change in judicial or administrative decision or proceedings (including amendments and modifications of any of the foregoing) pending or proposed to be imposed by any governmental or quasi -governmental authority or any public or private utility having jurisdiction over the Property shall have occurred. (c) Zoning; Survey_. There are no existing violations of zoning ordinances or other laws, ordinances or restrictions applicable to the Property; there are no encroachments upon the Property; and there are no other matters of survey that, in Buyer's sole discretion after examination of a survey of the Property, would affect the placement of or purpose of the Conservation Easement. (d) No Notices. Seller has not received actual notice from any governmental authority that existing uses of the Property are not in full compliance with all applicable zoning laws (and applicable variances) and any other local, municipal, regional, state or federal requirements or that the improvements on the Property do not comply with all applicable Page 3 of 20 building, safety, health, zoning, environmental, subdivision and other laws, ordinances and regulations. (e) No Actions or Proceedings. There is no action, proceeding or investigation whether in the nature of eminent domain or otherwise, pending or threatened, with respect to the title, ownership, maintenance, use or operation of the Property. (f) No Environmental Violations. The Property is not in violation of any federal, state or local law, ordinance or regulation relating to industrial hygiene or to the environmental conditions on, under, above or about the Property, including but not limited to soil and groundwater conditions. (g) Representations, Warranties and Covenants of Seller. Seller shall have performed each and every agreement to be performed by Seller under this Agreement, and Seller's representations and warranties in this Agreement shall be true and correct as of the Closing. (h) No Adverse Changes. Between the Effective Date and the Closing, there shall have been no adverse change in the physical condition of the Property that would frustrate the placement of or purpose of the Conservation Easement from the standpoint of Buyer or either of the Funding Sources. (i) Seller's Deliveries. Seller shall have delivered each of the items described in this Agreement to Buyer and/or Escrow Holder. 0) Investigation. Buyer shall have notified Seller that the Buyer's condition with respect to investigation of the Property has been satisfied or waived within the Contingency Period. (k) Appraisal. Buyer shall have obtained, at no cost to Seller, an appraisal of the Conservation Easement in form, amount and substance satisfactory to Buyer in its sole and absolute discretion. (1) Funding. Buyer shall have secured funding for the Conservation Easement in an amount sufficient to pay the Purchase Price in full at Closing and otherwise on terms and conditions acceptable to Buyer in Buyer's sole and absolute discretion. (m) No Seller Bankruptcy. If at any time prior to Closing, (i) there shall be filed against or by Seller a petition in bankruptcy or insolvency or a petition seeking to effect any plan or other arrangement with creditors or seeking the appointment of a receiver and the same is not discharged or dismissed before Closing; (ii) a receiver or liquidator is appointed for all or substantially all of Seller's property; or (iii) Seller makes an assignment for the benefit of creditors or takes any other similar action for the benefit or protection of creditors, then Buyer shall have the right in its sole and absolute discretion and in addition to all other remedies available to Buyer pursuant to this Agreement or at law or in equity to cancel and terminate this Agreement and neither Party shall have any further rights or obligations under this Agreement. Page 4 of 20 (n) Buyer's Approval. Buyer shall have obtained such formal authorization (which may include the approval of its board of directors or commissioners) to consummate the purchase and sale contemplated by this Agreement as may be necessary. 5.2. Benefit of Buyer. The Conditions Precedent are solely for the benefit of Buyer and may be waived only in writing by Buyer. Buyer shall at all times have the right to waive any condition. The waiver by Buyer of any condition in any specific circumstances shall not be a waiver of such condition with respect to any other circumstances or a waiver of any other condition and shall not relieve Seller of any liability or obligation with respect to any representation, warranty, covenant or agreement of Seller, unless the waiver expressly so provides. 5.3. Termination. If any Condition Precedent is not timely fulfilled and is not waived by Buyer, Buyer may terminate this Agreement by written notice to Seller and Escrow Holder shall, if Buyer so instructs, return to the Parties all funds and documents deposited by them, respectively, into escrow. 6. Investigation of the Property. 6.1. Seller's Initial Deliveries. Within ten (10) Business Days following the Effective Date, Seller shall, at Seller's sole expense, deliver to Buyer copies of any documents and records in Seller's possession or control, or in the possession or control of Seller's property manager, relating directly or indirectly to the Conservation Easement or the conservation values of the Property, including without limitation all permits, studies, surveys and maps of the Property. 6.2. Entrv. Without limiting any other rights of Buyer under this Agreement, as of the Effective Date, Seller understands and agrees that Buyer and/or the Funding Sources, and their respective agents and employees, shall have the right to enter upon the Property with Seller's advance permission in order to evaluate the Property for placement of the Conservation Easement, including without limitation for the non-invasive environmental assessment detailed below in Section 6.3. Seller agrees to cooperate with any such evaluation and assessment. Nothing in this Agreement authorizes Buyer or the Funding Sources or any other entity to conduct soils, engineering, or any other physical sampling or invasive tests at the Property, and Seller does not grant access for any such purposes. The exercise by Buyer of any of the preceding rights or any other act of Buyer shall not negate any representation, warranty or covenant of Seller, or modify any of Buyer's rights or Seller's obligations in the event of any breach by Seller of any of its representations, warranties or covenants under this Agreement. Buyer shall indemnify and hold Seller harmless from any and all damages, expense, liens or claims (including attorneys' fees) arising from Buyer's negligence in exercise of its entry rights hereunder or failure to pay third parties; and the provisions of this indemnity shall survive termination of this Agreement. 6.3. Environmental Assessment. Buyer and any Funding Source may obtain such non-invasive environmental assessments of the Property as Buyer and any funding source deem appropriate to evaluate the Property for placement of the Conservation Easement. Page 5 of 20 6.4. Period for Investigation. Closing of this transaction is conditioned on Buyer's satisfaction with the suitability of the Property for the placement and purpose of the Conservation Easement and the feasibility of this transaction in Buyer's sole and absolute discretion. Buyer shall have thirty (30) Business Days from the Effective Date to conduct its investigation (the "Contingency Period"). If Buyer fails to notify Seller in writing that this condition is satisfied or waived prior to 5:00 p.m. Pacific Time on the final day of the Contingency Period, then this Agreement shall be deemed terminated, and both Seller and Buyer shall be released and discharged from all further obligations under this Agreement. 7. Seller's Obligations. Before the Closing Seller shall, at its sole expense: 7.1. Promptly notify Buyer upon learning of any fact or event that would make any of the representations or warranties of Seller contained in this Agreement (including, without limitation, Buyer's Conditions Precedent and Seller's representations and warranties) untrue or misleading in any material respect or that would cause Seller to be in violation of any of its covenants or other obligations hereunder. 7.2. Notify Buyer promptly upon receiving notice of a claim or pending litigation affecting the Property, or notice of any event, transaction, or occurrence before Closing that would materially adversely affect the Property or any part thereof. 7.3. Not convey, mortgage, grant a deed of trust, or contract to do the foregoing or otherwise allow or consent to convey, abandon, relinquish, cloud or encumber title to the Property or any interest therein or part thereof without Buyer's prior written consent. 7.4. Maintain the Property in good order, condition and repair, and otherwise operate the Property and maintain its business records in the same manner as before the making of this Agreement, as Seller will continue to do as fee owner of the Property following sale of the Conservation Easement to Buyer. 7.5. Maintain all casualty, liability and hazard insurance currently in force with respect to the Property without diminution in coverage. 7.6. Remedy any violations of law or municipal ordinances or regulations of any federal, state, local or other governmental departments. 7.7. Take no action that will adversely affect title to the Property. 8. Deliveries to Escrow Holder. 8.1. By Seller. Seller shall deliver or cause to be delivered to Escrow Holder on or prior to the Closing Date the following items, the delivery of each of which shall be a condition to the performance by Buyer of its obligations under this Agreement: (a) Deed of Conservation Easement. A deed of conservation easement, in form and substance satisfactory to Buyer and its counsel, duly executed and acknowledged by Page 6 of 20 Seller (the "Deed"), conveying to Buyer or its designee the Conservation Easement, free and clear of all liens, encumbrances, restrictions and easements, except only the Permitted Exceptions. (b) FIRPTA Affidavit. A certificate in form and substance acceptable to Buyer and its counsel, duly executed by Seller, evidencing that Seller is exempt from the withholding requirements of Section 1445 of the Internal Revenue Code. (c) ALTA Affidavits. Any affidavits, certifications or instruments, including any lien affidavits or mechanic's lien indemnifications, duly executed and acknowledged by Seller, as reasonably may be required by the Title Company in order to issue the Title Policy. (d) Title Insurance Policy. The Title Policy in conformance with this Agreement. (e) Closing Certificates. A certificate of Seller dated as of the Closing Date certifying that all of Seller's representations and warranties remain true as of the Closing Date, or if not, specifying the respect in which any representation or warranty is no longer true. (f) Certificates of Authority. Such certificates as are necessary or required by Buyer or the Title Company to evidence the authority of Seller and its signatories to execute the instruments to be executed by Seller in connection with this transaction, and evidence that the execution of such instruments is the official act and deed of Seller. (g) Excise Tax Affidavit. A real estate excise tax affidavit signed by Seller or its agent. 8.2. Buyer. Buyer shall deliver or cause to be delivered to Escrow Holder on or before the Closing Date: (a) Closing, Funds. Cash by federal funds, wire transfer or cashier's check in the amount necessary to pay the Purchase Price and Buyer's share of closing costs and prorations. Buyer or its agent. (b) Excise Tax Affidavit. A real estate excise tax affidavit signed by (c) Deed of Conservation Easement. Acceptance of the Deed. 9. Close of Escrow. 9.1. Time. The close of escrow (the "Closing") shall occur not later than thirty (30) Business Days following expiration, or Buyer's earlier waiver, of the Contingency Period (the "Closing Date"), at the offices of Escrow Holder, unless extended in writing by mutual agreement of Seller and Buyer. When the Title Company is in a position to issue the Title Policy and all documents and funds have been deposited with Escrow Holder, Escrow Holder shall immediately Page 7 of 20 close escrow as provided for below. The failure of either Seller or Buyer to be in position to close by the Closing Date shall constitute a default by such Party. 9.2. Procedure. Escrow Holder shall close escrow as follows: (a) Obtain the release of the Property from any liens described in the Commitment, or at minimum obtain subordination agreements from any lien -holders described in the Commitment so that such liens are contractually subordinated to the Conservation Easement, except for the Permitted Exceptions; (b) Pay applicable real estate transfer excise taxes record the Deed, and complete the prorations; (c) Issue and deliver the Title Policy to Buyer; (d) Deliver to Buyer any other documents deposited by Seller into escrow that are intended for Buyer; (e) Deliver to Seller the Purchase Price less Seller's closing costs and prorations; and (f) Forward to Buyer and Seller, in duplicate, a separate accounting of all funds received and disbursed for each Party and copies of all executed and recorded or filed documents deposited into escrow, with such recording and filing date endorsed thereon. 9.3. Incorporation of Escrow Instructions. This Agreement shall serve as escrow instructions, and an executed copy of this Agreement shall be deposited by Buyer with Escrow Holder following its execution. The parties may execute additional escrow instructions provided that such additional escrow instructions shall not change the terms of this Agreement. 9.4. Closing Costs and Property Expenses. (a) Closing Costs. Buyer and Seller shall each pay their own attorneys' fees. Buyer shall pay the cost of recording the Deed, escrow fees, real estate transfer excise taxes, compensatory tax (if applicable), and the title insurance premium charged by the Title Company for a standard owner's policy. If required by Buyer, Buyer shall pay the additional premium charged by the Title Company for extended coverage, any endorsements and the cost of the survey. (b) Property Expenses. There shall be no change in responsibility for expenses related to the Property as a result of Buyer's acquisition of the Conservation Easement. At all time before and after Closing, Seller shall continue to be responsible for timely payment of all expenses of the Property, including but not limited to, real property taxes, rents, utility charges, amounts payable under contracts, annual permits, and other expenses normal to ownership, use, operation and maintenance of the Property. Any special assessments against the Property shall also continue to be the responsibility of Seller. Page 8 of 20 9.5. Possession. Possession of the Property shall remain in Seller upon Closing, subject to the Conservation Easement. 10. BrokeraL a Commission. Seller warrants to Buyer and Buyer warrants to Seller that each Party's sole contact with the other and with the Property regarding this transaction has been directly with the other Party and has not involved any broker or finder. Seller and Buyer further warrant to each other that no broker or finder can properly claim a right to a commission or finder's fee based upon contacts between the claimant and that Party with respect to the other Party or the Conservation Easement. Each Party shall indemnify, defend and hold the other Party harmless from and against any loss, cost or expense, including, but not limited to, attorneys' fees and court costs, resulting from any claim for a fee or commission by any broker or finder in connection with the Conservation Easement and this Agreement resulting from the indemnifying Party's actions. The obligations of the Parties under this Section shall survive the termination of this Agreement. 11. Casualty or Condemnation. 11.1. If there is a condemnation of all or part of the Property initiated before Closing, Seller shall promptly notify Buyer and Buyer shall have the option for ten (10) Business Days following the date the notice is received either to, by notice to Seller: (a) proceed with the Closing, in which event a percentage of all condemnation proceeds — with such percentage equivalent to the appraised value of the Property burdened by the Conservation Easement (the "after" value) divided by the value of the unencumbered Property (the "before" value) — already received by Seller by the Closing shall be paid to Buyer and the right to receive the same percentage of such proceeds not yet received by Seller shall be assigned to Buyer at the Closing, or (b) terminate this Agreement. Unless this Agreement is terminated, Seller shall take no action with respect to any condemnation proceeding without the prior written consent of Buyer. 11.2. The entire risk of loss or damage by casualty to the Property however caused shall be borne and assumed by Seller. Buyer's acquisition of the Conservation Easement has no impact on Seller's continuing responsibility for such loss or damage. If any casualty materially impacting the purpose of the Conservation Easement (i.e., costing 10% or more of the Purchase Price to repair) occurs to the Property before Closing, Buyer at its election may: (a) terminate this Agreement; or (b) proceed to close in which case the Parties shall determine whether an adjustment in Purchase Price and/or terms of the Conservation Easement are appropriate, with any such adjustment(s) subject to approval of the Funding Sources. 12. Representations. Warranties and Covenants. 12.1. Seller's Representations. Warranties and Covenants. In addition to the representations, warranties and covenants contained elsewhere in this Agreement, Seller as of the Effective Date and as of the Closing Date makes the following representations, warranties and covenants: (a) Title. Seller is the sole owner of the Property. At Closing, Buyer will acquire right, title and interest in and to the Conservation Easement, free and clear of all recorded or unrecorded liens, encumbrances, covenants, restrictions, reservations, easements, Page 9 of 20 options, tenancies, leases, encroachments, claims or other matters affecting title or possession of the Property, subject only to the Permitted Exceptions. Seller will retain fee simple ownership of the Property, subject to the Conservation Easement. (b) Agreements to Transfer or Encumber. Seller has not committed nor obligated itself in any manner whatsoever to sell, lease or encumber the Property or any interest therein to any party other than Buyer. (c) Compliance with Law. To the best of Seller's knowledge, the Property complies in all material respects (both as to condition and use) with all applicable statutes, ordinances, codes, rules and regulations of any governmental authority having jurisdiction over the Property (including those related to zoning, building, subdivision, and engineering), including all conditions contained in any certificate of occupancy covering any of the Property. Seller has obtained all required permits or authorizations for such occupancy. Seller has no knowledge of any facts that might give rise to any violation of the foregoing matters. (d) BankruptcX. No bankruptcy, insolvency, rearrangement or similar action involving Seller or the Property, whether voluntary or involuntary, is pending, threatened, by a third party, or contemplated by Seller. (e) Litigation. There is no pending, or to the best of Seller's knowledge, threatened judicial, municipal or administrative proceedings with respect to Seller, this transaction, or in any manner affecting the Property or any portion thereof or in which Seller is or will be a party by reason of Seller's ownership of the Property or any portion thereof. (f) Notices. Seller has not received any notices from any insurance companies, governmental agencies or from any other parties with respect to any violations or other matters concerning the Property. (g) Taxes and Assessments. Other than amounts disclosed by the Commitment, to the best of Seller's knowledge, no other property taxes have been or will be assessed against the Property for the current tax year, and there are no general or special assessments or charges that have been levied, assessed or imposed on or against the Property. (h) Tax Returns. Seller has filed all local, state and federal tax forms that are required to be filed by Seller, has paid all taxes due and payable by Seller to date and will pay all such taxes that become due and payable by Seller prior to the Closing. (i) Underground Storage Tanks. To the best of Seller's knowledge, there are no cisterns, wells, subterranean storage or underground storage tanks on the Property and underground storage tanks have not been removed from the Property. 0) Violation of Property Restrictions. To the best of Seller's knowledge, the Property and the current use, occupation and condition thereof do not violate any applicable deed restrictions or other covenants, restrictions or agreements (including, without limitation, any of the Permitted Exceptions), site plan approvals, zoning or development plans applicable to the Property. Page 10 of 20 (k) Subdivision. To the best of Seller's knowledge, the conveyance of the Conservation Easement will not constitute a violation of any subdivision ordinance. (1) Tax Valuation/Assessment. Seller has no knowledge and has received no notice of any proceedings pending for the correction of the assessed valuation of the Property or any other pending or threatened special assessments affecting the Property. (m) Authority. Seller has all requisite power and authority to execute and deliver this Agreement and to carry out Seller's obligations herein and the transactions contemplated hereby. This Agreement has been, and the documents contemplated hereby will be, duly executed and delivered by Seller and constitute the Seller's legal, valid and binding obligation enforceable against Seller. The sale of the Conservation Easement is not in violation of or in conflict with, nor does it constitute a default under, any term or provision of any agreement or instrument to which Seller is or may be bound, or of any provision of any applicable law, ordinance, rule or regulation of any governmental authority or of any provision of any applicable order, judgment or decree of any court, arbitrator or governmental authority. (n) No Omissions. All representations and warranties made by Seller in this Agreement, and all information contained in any certificate furnished by Seller to Buyer in connection with this transaction, are free from any untrue statement of material fact and do not omit any material facts necessary to make the statements contained herein or therein not misleading. The copies of any documents furnished to Buyer in connection with this transaction are true and complete copies of the documents they purport to be and to the best of Seller's knowledge contain no untrue statement of material fact and do not omit to state any material facts necessary to make the statements contained therein not misleading. (p) Mechanic's Liens. No labor, material or services have been furnished in, on or about the Property or any part thereof as a result of which any mechanics', laborer's or materialmen's liens or claims might arise. (q) No Assumption of Liabilities. Seller acknowledges that Buyer, by virtue of the purchase of the Conservation Easement, will not be required to satisfy any obligation of Seller, whether arising before or after the Closing Date. Seller will pay and discharge any and all liabilities of each and every kind arising out of or by virtue of the possession, ownership or use of the Property, whether before or after the Closing Date, and shall indemnify, defend and hold Buyer harmless therefrom. (r) Provide Further Information. From the Effective Date through the Closing Date, Seller will notify Buyer of each event of which Seller becomes aware affecting the Property or any part thereof immediately upon learning of the occurrence of such event. 12.2. Effect of Buyer's Inspections. The effect of the representations and warranties made by Seller in this Agreement shall not be diminished or deemed to be waived by any inspections or investigations made by Buyer or its agents. Page 11 of 20 12.3 Buyer's Representation. Forterra is a Washington nonprofit corporation duly organized, validly existing and in good standing in the State of Washington. County is a political subdivision of the State of Washington. Each Buyer, for itself, represents that it has all requisite power and authority to execute and deliver this Agreement and to carry out its obligations and the transactions contemplated by this Agreement. This Agreement has been, and the documents contemplated by this Agreement will be, duly executed and delivered by Buyer and constitute Buyer's legal, valid and binding obligation enforceable against Buyer. The purchase of the Conservation Easement is not in violation of or in conflict with, nor does it constitute a default under, any term or provision of Buyer's governing documents, or any of the terms of any agreement or instrument to which Buyer is or may be bound, or of any provision of any applicable law, ordinance, rule or regulation of any governmental authority or of any provision of any applicable order, judgment or decree of any court, arbitrator or governmental authority. 13. Environmental Compliance. In addition to and without limiting any other provision of this Agreement, Seller warrants, represents, covenants and agrees: (a) To the best of Seller's knowledge, Seller and the Property are in compliance with all federal, state, and local laws, regulations, and requirements applicable to the Property and its use; (b) To the best of Seller's knowledge, there has been no release, dumping, burying, abandonment or migration from off-site on the Property of any substances, materials, or wastes that are or are designated as, hazardous, toxic, dangerous, or harmful or contain components that are, or are designated as, hazardous, toxic, dangerous, or harmful and/or that are subject to regulation as hazardous, toxic, dangerous, or harmful by any federal, state or local law, regulation, statute, or ordinance; (c) Neither Seller nor, to the best of Seller's knowledge, Seller's immediate predecessor as owner of the Property, has disposed of any Hazardous Substances off- site, nor have they disposed of substances at sites designated or proposed to be designated as federal Superfund (42 U.S.C. §9601 et seq.) or state Model Toxics Control Act (RCW 70.105D.010 et seq.) ("MTCA") sites; and (d) To the best of Seller's knowledge, there is no pending or threatened litigation affecting the Property or any portion of the Property that will materially impair the conservation values of any portion of the Property. To the best of Seller's knowledge, no civil or criminal proceedings have been instigated or are pending against Seller or its predecessors by government agencies or third parties arising out of alleged violations of environmental laws, and neither Seller nor its predecessors in interest have received any notices of violation, penalties, claims, demand letters, or other notifications relating to a breach of environmental laws. (e) Seller will hold harmless and indemnify the Buyer against all litigation, claims, demands, penalties, and damages, including reasonable attorneys' fees, arising from or connected with the release or threatened release of any Hazardous Substances or Hazardous Materials on, at, beneath, or from the Property, or arising from or connected with a violation of any Environmental Laws by Seller or any other prior owner of the Property. Seller's Page 12 of 20 indemnification obligation will not be affected by any authorizations provided by the Buyer to the Seller with respect to the Property or any restoration activities carried out by Buyer at the Property; provided, however, that the Buyer is responsible for any Hazardous Substances or Hazardous Materials contributed after this date to the Property by the Buyer. (f) Pre -Closing Covenant. Seller will not use, generate, manufacture, produce, store, release, discharge or dispose of on, under, above or about the Property (or off-site of the Property that might affect the Property), or transport to or from the Property, any Hazardous Substance or authorize any other person or entity to do so, prior to the Closing, other than such substances as are currently and typically used for agricultural activities on the Property, including pesticide and herbicide, provided that any such use, storage, disposal, etc. complies with all local, state and federal laws and regulations. The terms `Environmental Law" and "Environmental Laws" mean any and all Federal, State, local, or municipal laws, rules, orders, regulations, statues, ordinances, codes, guidelines, policies, or requirements of any governmental authority regulating or imposing standards of liability or standards of conduct (including common law) concerning air, water, solid waste, hazardous materials, worker and community right -to -know, hazard communication, noise, radioactive materials, resource protection, subdivision, inland wetlands and watercourses, health protection and similar environmental health, safety, and building and land use as may now or at any time hereafter be in effect. The term "Hazardous Substance" shall mean any substances, materials, or wastes that are hazardous, toxic, dangerous, or harmful or are designated as, or contain components that are, or are designated as, hazardous, toxic, dangerous, or harmful and/or which are subject to regulation as hazardous, toxic, dangerous, or harmful or as a pollutant by any federal, state, or local law, regulation, statute, or ordinance, including, but not limited to, petroleum or any petroleum product. The term "Hazardous Substances" shall not include biosolids, herbicides, pesticides, rodenticides, insecticides, and fertilizers applied in accordance with federal, state, and local law. The term "Hazardous Materials" means any petroleum, petroleum products, fuel oil, waste oils, explosives, reactive materials, ignitable materials, corrosive materials, hazardous chemicals, hazardous wastes, hazardous substances, extremely hazardous substances, toxic substances, toxic chemicals, radioactive materials, infectious materials, and any other element, compound, mixture, solution or substance that may pose a present or potential hazard to human health or the environment. The term "Release" shall mean any release, generation, treatment, disposal, dumping, burying, or abandonrnent. 14. Indemnification. Seller shall protect, defend, indemnify and hold Buyer and its successors and assigns harmless from and against any and all loss, liability, damage and expense suffered or incurred before or after Closing by reason of (a) the breach of any representation, warranty or agreement of Seller set forth in this Agreement, (b) the failure of Seller to perform any obligation required by this Agreement to be performed by Seller, (c) the ownership, maintenance, Page 13 of 20 and/or operation of the Property by Seller, not in conformance with this Agreement, or (d) any injuries to persons or property from any cause occasioned in whole or in part by any acts or omissions of the Seller, its representatives, employees, contractor or suppliers. Seller shall defend any claim covered by this indemnity using counsel reasonably acceptable to Buyer. The obligations of Seller under this Section shall survive the termination of this Agreement. 15. Entire Agreement. This Agreement contains the entire integrated agreement of the Parties, including all of the covenants and conditions between the Parties with respect to the subject matter of this Agreement, and supersedes all prior correspondence, agreements and understandings, both verbal and written. No addition or modification of any term or provision of this Agreement shall be effective unless set forth in writing and signed by Seller and Buyer. 16. Default, Remedies 16.1. Remedies and Specific Performance. In the event of breach or default of this Agreement by either Party, the other Party may pursue any remedy available at law or in equity. This Agreement pertains to the conveyance of an interest in real property, the unique nature of which is hereby acknowledged by the Parties. Consequently, if Seller breaches or defaults under this Agreement or any of the representations, warranties, terms, covenants, conditions or provisions hereof, Buyer shall have, in addition to a claim for damages for such breach or default, and in addition and without prejudice to any other right or remedy available under this Agreement or at law or in equity, the right (a) to specific performance of this Agreement; or (b) to terminate this Agreement upon written notice without liability to Seller. 16.2. Attorneys' Fees. If either Party brings an action or other proceeding against the other Party to enforce any of the terms, covenants or conditions hereof or any instrument executed pursuant to this Agreement, or by reason of any breach or default hereunder or thereunder, the Party prevailing in any such action or proceeding shall be paid all costs and reasonable attorneys' fees by the other Party, and in the event any judgment is obtained by the prevailing Party all such costs and attorneys' fees shall be included in the judgment. 17. Notices. All written notices required to be given pursuant to the terms hereof shall be either delivered personally, mailed by overnight courier with confirmation of delivery, or deposited in the United States mail, certified mail, return receipt requested, postage prepaid and addressed to the addresses listed below with copies to the parties listed after such address: SELLER: Brent Minor and Mary Minor 8001 Naneum Road Ellensburg, WA 98926 With a copy to: Draper Law PLLC 683332 d Avenue NE Seattle, WA 98115 Page 14 of 20 Page 15 of 20 BUYER: Forterra NW 901 5th Ave, Suite 2200 Seattle, WA 98164 Attn: Corporate Counsel Kittitas County 205 W 5th Ave. Ellensburg, WA 98926 Attn: Brett Wachsmith, Chairman The foregoing addresses may be changed by written notice to the other Party as provided herein. Mailed notice properly given shall be deemed received three (3) Business Days after deposit in the mail. 18. Partial Invalidity. If any term or provision of this Agreement or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Agreement, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby; and each such term and provision of this Agreement shall be valid and be enforced to the fullest extent permitted by law. 19. Waivers. No waiver of any breach of any covenant or provision in this Agreement shall be deemed a waiver of any preceding or succeeding breach thereof, or of any other covenant or provision in this Agreement. No extension of time for performance of any obligation or act shall be deemed an extension of the time for performance of any other obligation or act. 20. Construction. Captions are solely for the convenience of the Parties and are not a part of this Agreement. This Agreement shall not be construed as if it had been prepared by one of the Parties, but rather as if both Parties had prepared it. If the date on which Buyer or Seller is required to take any action under the terms of this Agreement is not a Business Day, the action shall be taken on the next succeeding Business Day. 21. Time. Time is of the essence of every provision of this Agreement. As used in this Agreement, the term “Business Day” refers to Monday through Friday, other than legal holidays in the State of Washington. 22. Force Majeure. Performance by Seller or Buyer of their obligations under this Agreement shall be extended by the period of delay caused by force majeure. Force majeure is war, natural catastrophe, strikes, walkouts or other labor industrial disturbance, order of any government, court or regulatory body having jurisdiction, shortages, blockade, embargo, riot, civil disorder, or any similar cause beyond the reasonable control of the Party who is obligated to render performance (but excluding financial inability to perform, however caused). A Party desiring to assert force majeure is required to promptly notify the other Party with such information regarding the event and its duration as the Party may reasonably request. 23. Successors. The terms, conditions and covenants contained in this Agreement shall be binding upon and shall inure to the benefit of the successors and assigns of the Parties. 24. Applicable Law. This Agreement shall be governed by the law of the State of Washington. 25. Recitals and Exhibits. The Recitals and Exhibits are incorporated into this Agreement by this reference. 26. Counterparts. This Agreement may be signed in counterparts, any of which shall be deemed an original. [Remainder of page intentionally blank.] Page 16 of 20 IN WITNESS WHEREOF, the undersigned have executed this Purchase and Sale Agreement as of the Effective Date. SELLER: Brent Minor Mary Minor Date: Date: BUYER: FORTERRA NW, a Washington nonprofit corporation By: Michelle Connor, President and CEO Date: KITTITAS COUNTY, a Washington county By: Name: Title: Date: Page 17 of 20 Exhibit List Exhibit A Legal Description of the Property Exhibit B Form of Deed of Conservation Easement — Final Draft Page 18 of 20 EXHIBIT A TO PURCHASE AND SALE AGREEMENT Legal Description of the Property [To be confirmed] TRACT 1: Parcel 5 of that certain Survey as recorded May 9, 2007, in Book 34 of Surveys, pages 42 and 43, under Auditor's File No. 200705090017, records of Kittitas County, Washington; being a portion of the Southeast Quarter of Section 8, Township 18 North, Range 19 East, W.M, in the County of Kittitas, State of Washington. TRACT 2: Parcels A, B, C, and D of that certain Survey as recorded July 5, 2007, in Book 34 of Surveys, pages 78 and 79, under Auditor's File No. 200707050010, records of Kittitas County, Washington; being a portion of the Southwest Quarter of Section 9, Township 18 North, Range 19 East, W.M., in the County of Kittitas, State of Washington. TRACT 3: Parcels S1, S2, S3, S4, and S5 of that certain Survey as recorded July 10, 2007, in Book 34 of Surveys, pages 82 and 83, under Auditor's File No. 200707100002, records of Kittitas County, Washington; being a portion of the Southwest Quarter of Section 9, Township 18 North, Range 19 East, W.M., in the County of Kittitas, State of Washington. 1 .. Parcels 1W, 3W, 4W, 5W, 6W, 7W and 8W of that certain Survey as recorded July 11, 2007, in Book 34 of Surveys, pages 89 and 90, under Auditor's File No. 200707110035, records of Kittitas County, Washington, being a portion of the West Half of Section 9, Township 18 North, Range 19 East, W.M., in the County of Kittitas, State of Washington. TRACT 5: Parcels 1E,2E, 3E, 4E, 5E, 6E, and 7E of that certain Survey as recorded July 12, 2007, in Book 34 of Surveys, pages 93 and 94, under Auditor's File No. 200707120013, records of Kittitas County, Washington; being a portion of the West Half of Section 9, Township 18 North, Range 19 East, in the County of Kittitas, State of Washington. TRACT 6: Parcels 1, 2, 3, 4, 5, 6, 7, and 8 of that certain Survey as recorded July 13, 2007, in Book 34 of Surveys, pages 95 and 96, under Auditor's File No. 200707130037, records of Kittitas County, Washington; being a portion of the Southwest Quarter of Section 9, Township 18 North, Range 19 East, W.M., in the County of Kittitas, State of Washington. TRACT 7: Parcels A, B, C, D and E of that certain Survey as recorded July 25, 2007, in Book 34 of Surveys, pages 106 and 107, under Auditor's File No. 200707250023, records of Kittitas County, Washington; being a portion of the West Half of Section 9, Township 18 North, Range 19 East, W.M., in the County of Kittitas, State of Washington. Page 19 of 20 EXHIBIT B TO PURCHASE AND SALE AGREEMENT Form of Deed of Conservation Easement — Final Draft [See attached] Page 20 of 20 AFTER RECORDING RETURN TO: Forterra NW 9015th Avenue, Suite 2200 Seattle, WA 98164 Please print or type information WASHINGTON STATE RECORDER'S Cover Sheet (RCW 65.04) Document Title(s) (or transactions contained therein): Deed of Agricultural Conservation Easement Reference Number(s) of Documents assigned or released: Additional reference numbers on page(s) of document. Grantor(s) (Last name, first name, initials) 1. Minor, Brent 2. Minor, Mary 3. ❑ Additional names are on page(s) of document. Grantee(s) (Last name first, then first name and initials) 1. Kittitas County (Grantee) 2. Forterra NW (Co -Grantee) ❑ Additional names are on page(s) of document. Legal description (abbreviated: i.e. lot, block, plat or section, township, range) [to be inserted] ❑Additional legal description is on Exhibit A. Assessor's Property Tax Parcel/Account Number ❑ Assessor Tax # not yet assigned [to be inserted] The Auditor/Recorder will rely on the information provided on the form. The staff will not read the document to verify the accuracy or completeness of the indexing information provided herein. FINAL DRAFT 111 612 02 0 DEED OF AGRICULTURAL CONSERVATION EASEMENT This DEED OF AGRICULTURAL CONSERVATION EASEMENT ("Easement") is made by Brent Minor and Mary Minor, a married couple, (collectively, "Grantor"), having an address of 8001 Naneum Road, Ellensburg, WA 98926, in favor of the County of Kittitas, a political subdivision of the State of Washington ("County" or "Grantee"), having an administrative office address of 205 West 5"1' Ave., Ellensburg, WA 98926; and Forterra NW, a Washington nonprofit corporation ("Forterra" or "Co -Grantee"), having an address of 901 5t` Avenue, Suite 2200, Seattle, WA 98164. Grantor and Co -Grantee may be referred to herein individually as a "Party" and collectively as the "Parties" or "Co -Grantees." The following third party beneficiaries (individually a `Beneficiary" and collectively, the `Beneficiaries") have certain rights hereunder, including third party right of enforcement: The United States of America (the United States), acting by and through the United States Department of Agriculture ("USDA") Natural Resources Conservation Service ("NRCS") on behalf of the Commodity Credit Corporation ("CCC") and the State of Washington, by and through the Washington State Recreation and Conservation Office ("RCO"). 1. RECITALS 1.1. Grantor is the owner in fee simple of the certain real property (hereinafter, "Protected Property") located in Ellensburg, Kittitas County, Washington, more particularly described in Exhibit "A" ("Legal Description") and shown on Exhibit `B" ("Site Map"), which are attached to this instrument and incorporated herein by this reference. The Protected Property consists of approximately 274 acres in 37 parcels, and is commonly known as "Hairpin Ranch." 1.2. The Protected Property possesses significant agricultural values of great importance to Grantor, Co -Grantee, the people of Kittitas County, and the people of the State of Washington (collectively, "Agricultural Conservation Values"). The Agricultural Conservation Values include, without limitation, existing and potential economic productivity, the viability of the site for continued agricultural production, including farm -to -market access, proximity to roads and utilities, and water availability. Permanent protection of the Protected Property will further the purposes of the Washington State Farm and Forest Account (FFA) established under RCW 79A.15.130, which provides that moneys appropriated to the FFA "must be distributed for the acquisition and preservation of farmlands and forestlands in order to maintain the opportunity for agricultural and forest management activity upon these lands." The legislatively declared policies of the State of Washington in the Washington State Open Space Tax Act, Chapter 84.34 RCW ("OSTA" ), provide that "it is in the best interest of the state to maintain, preserve, conserve, and otherwise continue in existence adequate open space lands for the production of food, fiber and forest crop, and to assure the use and enjoyment of natural resources and scenic beauty for the economic and social well being of the state and its citizens." Under the OSTA, lands eligible for preferential real -2- FINAL DRAFT 111612020 property tax treatment include lands such as the subject Protected Property where the preservation in its present use would conserve and enhance natural resources and promote conservation of soils. As of the Effective Date, the Protected Property is classified by Kittitas County's Assessor's office as farm and agricultural land (as such term is defined in the OSTA). Pursuant to such classification, the Protected Property receives preferential real property tax treatment in accordance with the OSTA. It is the intent of all Parties that the Protected Property shall be maintained in a manner that allows it to remain eligible for designation as farm and agricultural land under the OSTA during the term of this Easement. It is the intent of all parties that the Agricultural Conservation Values of this easement shall be primary and the habitat or other conservation values shall be secondary." 1.3. The Protected Property consists primarily of working farm and grazing land (as defined in RCW §79A.15.010(4)) the soils which have been classified prime farmland by the NRCS due to the soil quality, growing season, and moisture supply as needed for sustained agricultural production. 1.4. The Protected Property is irrigated via flood irrigation utilizing water rights associated with the Kittitas Reclamation District and also via a portion of water rights associated with the Naneum Creek system that runs through the Protected Property. 1.5. The Agricultural Conservation Values are documented in an inventory of relevant features of the Protected Property on file at the offices of Grantee and Co -Grantee and incorporated herein by this reference ("Baseline Documentation"). The Baseline Documentation consists of reports, maps, photographs, and other documentation that provide, collectively, an accurate representation of the Protected Property at the time of this grant and which is intended to serve as an objective information baseline for monitoring compliance with the terms of this grant. The Parties acknowledge that the Baseline Documentation is complete and accurate as of the date of this Easement. The Baseline Documentation may be used to establish that a change in the use or condition of the Protected Property has occurred, but its existence shall not preclude the use of other evidence to establish the condition of the Protected Property as of the date of this Easement. Grantee and/or Co -Grantee may use the Baseline Documentation in enforcing provisions of this Easement, but are not limited to the use of the Baseline Documentation to show a change in the use or condition of the Protected Property. 1.6. This Easement is acquired in part with funds provided under the Agricultural Conservation Easement Program (ACEP) 16 U.S.C. Section 3865 et seq. and 7 CFR Part 1468, administered by and through NRCS for the purpose of protecting the agricultural use and future viability, and related conservation values, by limiting nonagricultural uses of the Protected Property pursuant to that certain cooperative agreement (#N5319ALE00100132) between NRCS and Co -Grantee ("United States Grant Agreement"). NRCS is a third -party beneficiary of certain rights under this Easement. -3- FINAL DRAFT 1/16/2020 1.7. This Easement is acquired in part with a grant from RCO pursuant to that certain grant agreement (#16-1634A) between RCO and Grantee and Co -Grantee dated July 15, 2019 ("RCO Grant Agreement"). RCO is a third -party beneficiary of certain rights under this Easement. 1.8. Forterra is a Washington nonprofit nature conservancy corporation or association authorized to acquire and hold conservation easement interests under RCW §64.04.130 and RCW §84.34.210. 1.9. County is authorized to acquire and hold conservation easement interests under RCW §64.04.130 and RCW §84.34.210. 1.10. Grantor is the holder of water rights from the Kittitas Reclamation District in a quantity up to 990 acre-feet per year for irrigation (the "KRD Water"), and is also the owner of a water right dating from 1882 evidenced by a water right certificate stating a quantity of up to 575 acre-feet per year for irrigation (the "Certificate"). The Parties agree that, in order to maintain the opportunity for agricultural activity upon the Protected Property pursuant to RCW §79A.15.130(1), it is appropriate to include in this Easement all of the KRD Water and the first 372 acre-feet per year legally and physically available under the Certificate, as collectively described in Exhibit "D" attached to this instrument and incorporated herein by this reference (the "Dedicated Water Rights"). The balance of the authorized quantity under the Certificate is not subject to this Easement, nor are any other water rights which Grantor may hold. 1.11. The Parties intend that the Agricultural Conservation Values be preserved and maintained in perpetuity by permitting only those land uses on the Protected Property that do not impair or interfere with the Agricultural Conservation Values. 1.12. Grantor, as owner of the Protected Property, has the right to protect and preserve the Agricultural Conservation Values, and desires and intends to transfer such rights to Co - Grantees in perpetuity, commencing on the Effective Date of this Easement. 2. CONVEYANCE AND CONSIDERATION 2.1. For the reasons stated above, and in consideration of the mutual covenants, terms, conditions and restrictions contained herein, and pursuant to the laws of Washington and in particular RCW §64.04.130 and RCW §84.34.210, Grantor hereby voluntarily grants, conveys and warrants, for valuable consideration, the receipt of which is acknowledged hereby, to Grantee and Co -Grantee a conservation easement in gross in perpetuity over the Protected Property consisting of the rights in the Protected Property, hereinafter enumerated, subject only to the title matters set forth in Exhibit E (Permitted Exceptions), which is attached to this instrument and incorporated herein by this reference. In FINAL M11 -i1- 1 111612020 2.2. This conveyance is a conveyance of an interest in real property under the provisions of RCW §64.04.130. 2.3. Grantor expressly intends that this Easement runs with the land and that this Easement shall be binding upon Grantor's, Grantee's, and Co -Grantee's successors and assigns in perpetuity. 3. PURPOSE 3.1. Purpose. The Purpose of this Easement is to protect the Agricultural Conservation Values of the Protected Property forever and prevent any use of the Protected Property that will impair or interfere with its Agricultural Conservation Values, thereby maintaining the opportunity for agricultural activity upon the Protected Property pursuant to RCW §79A.15.130(1). 3.2. Stewardship Plan. To further the Purpose of this Easement, the Grantee and/or Co - Grantee may develop a plan for stewardship of the Protected Property (the "Stewardship Plan") consistent with this Easement. 3.3. Interpretation of the Easement 3.3.1. The Parties intend that this Easement be interpreted in a manner consistent with its Purpose. 3.3.2. The Parties intend that this Easement be interpreted to confine the Grantor's use of the Protected Property to such activities that are consistent with the Purpose and terms of this Easement. At the same time, the Parties intend, and this Easement is structured, to give Grantor maximum flexibility and discretion to undertake activities that are consistent with the Purpose and terms of this Easement. 3.4. No Public Rights Conveyed Through Easement. The Parties acknowledge that, except as specifically provided herein, Grantor does not grant, expand or extend any rights to the general public through this Easement, including without limitation, any rights of public access to, on or across, or public use of, the Protected Property. 4. RIGHTS CONVEYED TO GRANTEE AND CO -GRANTEE To accomplish the Purpose of this Easement, the following rights are conveyed to Grantee by this Easement: -5- FINAL DRAFT 111612020 4.1. Protection. Grantee shall have the right to identify, protect, preserve, maintain and conserve in perpetuity and to enhance, restore, or improve by mutual agreement the Agricultural Conservation Values of the Protected Property. 4.2. Access by Grantee. As provided for and limited herein, Grantor hereby grants to Grantee reasonable and non-exclusive access at reasonable times across the Protected Property solely for the purposes of fulfilling Grantee's obligations under this Easement and exercising its affirmative rights under this Easement. Specifically, Grantee shall have the right: 4.2.1. To enter upon, inspect, observe and study the Protected Property, with such persons as Grantee may require, at mutually agreeable dates and times and upon reasonable prior notice to the Grantor, for the purpose of (a) identifying the current uses and practices on the Protected Property and the condition of the Protected Property, and (b) monitoring the uses and activities on the Protected Property to determine whether they are consistent with this Easement. 4.2.2. To enter upon the Protected Property, at a mutually agreeable date and time and upon reasonable prior notice to Grantor, to inspect the Protected Property after major natural events occur, such as fires, windstorms, and floods. 4.2.3. To enter upon the Protected Property at such other times as are necessary if there is reason to believe that a violation of the Easement is occurring, for the purposes of enforcing the provisions of this Easement. Prior to entry, Grantee must provide Grantor notice, and describe the basis of the reasonable belief that a violation is occurring on the Protected Property. 4.2.4. Grantee shall exercise its access rights in compliance with applicable law and in a manner that will not materially disturb or interfere with Grantor's reserved rights, any other person's lawful use of the Protected Property, or Grantor's quiet enjoyment of the Protected Property. 4.2.5. Grantor shall not unreasonably withhold or delay its consent to dates and times of access proposed by Grantee. 4.3. Development Rights. Grantor hereby grants to Grantee all development rights (i.e., any interest in and the right to use or subdivide a lot for any and all residential, commercial, and industrial purposes) that are now or hereafter allocated to, implied, reserved or inherent in the Protected Property except as specifically reserved herein, and the Parties agree that such rights may not be used on or transferred off of the Protected Property as it now or hereafter may be bounded or described, or to any other property adjacent or otherwise, or (except as expressly permitted herein) used for the purpose of calculating permissible lot yield or density of the Protected Property or any other property. 0 FINAL DRAFT 1/16/2020 4.4. Injunction and Restoration. Grantee shall have the right to prevent, or cause Grantor to prevent, any use of, or activity on, the Protected Property that is inconsistent with the Purpose and terms of this Easement, including trespasses by members of the public, and shall have the right to undertake or cause to be undertaken the restoration of such areas or features of the Protected Property as may be materially damaged by activities contrary to the provisions hereof, all in accordance with Section 9. 4.5. Enforcement. Grantee shall have the right to enforce the terms of this Easement, in accordance with Sections 8 and 9. 4.6. Assignment. Grantee shall have the right to assign, convey, or otherwise transfer its respective interest in the Protected Property in accordance with Section 13. 4.7. Signage. [Intentionally omitted.] 4.8. Co -Grantee: To accomplish the purpose of this Easement the rights conveyed to Grantee by this Section 4 are also conveyed to Co -Grantee by this Easement. The limitations imposed by this Section 4 on Grantee's exercise of such rights shall also apply to Co -Grantee's exercise of such rights. 5. PERMITTED USES 5.1. General. Grantor reserves for itself and its successors and assigns, any and all rights not otherwise conveyed to Grantee and Co -Grantee under this Easement and any and all uses of, or activities on, the Protected Property that are not inconsistent with the Purpose and terms of this Easement, and that are not prohibited herein. Without limiting the generality of the foregoing, Grantor specifically reserves for itself and its successors and assigns the following uses and activities, which shall be considered permitted uses and activities under the Easement. 5.2. Agricultural Activities. Grantor may engage in, and allow others to engage in, Agricultural Activities (as defined below) on the Protected Property, as further provided for and limited in this Section and in Section 6. 5.2.1. As used herein, "Agricultural Activities" shall mean the commercial production of horticultural, viticultural, floricultural, dairy, apiary, vegetable, or animal products, including but not limited to crops commonly found in the community surrounding the Protected Property, field crops, fruits, vegetables, horticultural specialties, livestock or livestock products, or the commercial production of berries, grain, hay, straw, seed, or Christmas trees not subject to the excise tax imposed by RCW §§84.33.100 through 84.33.140, and all conditions and activities occurring on a farm in connection with such commercial production, including, but not limited to, marketed produce at roadside stands or farm -7- FINAL DRAFT 111612020 markets; noise; odors; dust; fumes; operation of machinery and irrigation pumps; movement, including, but not limited to, use of current county road ditches, streams, rivers, canals, and drains, and use of water for agricultural purposes; ground and aerial application of seed, fertilizers, conditioners, and plant protection products; employment and use of labor; roadway movement of equipment and livestock; protection from damage by wildlife; prevention of trespass; and construction and maintenance of buildings, fences, roads, bridges, ponds, drains, waterways, and similar features and maintenance of streambanks and watercourses. 5.2.2. Agricultural Activities shall also include such "Accessory Uses," as defined as of the Effective Date of this Easement in RCW §36.70A.177(3)(b), that are related to the permitted Agricultural Activities on the Protected Property, that maintain the primacy of, and are subordinate to, the farmland character and use of the Protected Property, that are compatible with the Agricultural Conservation Values, and that provide supplemental income. 5.2.3. All Agricultural Activities shall be carried out in accordance with applicable law and in compliance with the Purpose and terms of this Easement. Grantor retains discretion over the specific character and content of the management decisions and practices necessary to identify, protect, preserve, maintain and conserve in perpetuity and to enhance, restore, or improve the Agricultural Conservation Values consistent with the Purpose and terms of this Easement. 5.3. Stewardship Activities. Grantor may engage in, and allow others to engage in, any activity to monitor, protect and maintain the Agricultural Conservation Values with prior written notice to and consent of Grantee and pursuant to any Stewardship Plan that may cover the Protected Property and agreed to by the parties to the Stewardship Plan. 5.4. Maintenance and Construction of Buildings and Other Structures 5.4.1. Maintenance of Existing Structures. Grantor may maintain, repair, replace or decommission structures, houses, barns, water -pollution -control facilities, water impoundments, fences, corrals, roads, ditches, sloughs, pumps, levees, and other permanent improvements ("Improvements") existing on the Protected Property as of the Effective Date of this Easement, provided that such activities related to existing Improvements are carried out in compliance with the Purpose and terms of this Easement, including the impervious surface limitations provided for in Section 6.6.1. Such Improvements shall include utility systems that support the Improvements, including, without limitation, electric power lines, septic systems, water storage and delivery systems, and telephone and communication cable systems. FINAL Ms' I 1 1/16/2020 5.4.2. Construction of New Structures and Expansion of Existing Structures. Grantor may construct additional Improvements not existing as of the Effective Date of this Easement and may expand or enlarge Improvements existing on the Protected Property as of the Effective Date of this Easement provided those structures and improvements are located within the Building Envelopes (as defined below in Section 6.6.2), are in compliance with the Purpose and terms of this Easement, and are subject to the impervious surface limitations and restrictions on new Improvements provided for in Section 6.6. 5.4.3. Reservation of Dwelling Units. Grantor reserves the right to use, maintain, repair, replace, expand and/or enlarge existing single-family dwelling units and to construct new single-family dwelling units within the Building Envelopes on the Protected Property (collectively, the "Dwelling Units"), subject to applicable government rules and regulations and subject to the impervious surface limitations and restrictions on new Improvements provided for in Section 6.6, for the sole purpose of accommodating the Grantors and their successors in interest to the Land or any portion thereof, the farm operator(s), and/or the families of such persons, or for accommodating agricultural employees of the owner(s) or operator(s) and their families. No more than three (3) Dwelling Units in total will be permitted at any one time on the Protected Property and all must be located within the Building Envelopes. As of the Effective Date of this Easement, Grantor utilizes two (2) buildings as Dwelling Units: Grantor's primary house and a pump/well house. At such time as the pump/well house is no longer used for dwelling purposes it will not be considered a Dwelling Unit for purposes of this Easement. 5.5. Water Rights. The Parties agree that the Dedicated Water Rights must be maintained on the Property to ensure the protection of the Agricultural Conservation Values. Grantor may exercise the Dedicated Water Rights by putting them to any beneficial use that is not inconsistent with the Purpose and terms of this Easement, and that is not prohibited herein. Grantor may maintain, repair, and if destroyed, reconstruct or replace any existing facilities relating to the Dedicated Water Rights (such as ditches, wells and reservoirs) with notice to Grantee as provided for in Section 7, provided that such activities are carried out in compliance with the Purpose and terms of this Easement. 5.6. Recreational or Educational Use. Grantor may engage in, and allow others to engage in, recreation or educational activities on the Protected Property. Recreational uses are limited to uses such as hiking, fishing, horseback riding, and other forms of recreation that do not require site modification to accommodate motorized, mechanical or electronic accessories. All forms of developed recreation or recreation that adversely impact the Agricultural Conservation Values are prohibited. All recreational and educational activities on the Protected Property shall be carried out in compliance with the Purpose and terms of this Easement, and in a manner that in 11. DRAFT 1/16/2020 maintains the primacy of, and remains subordinate to, the farmland character and use of the Protected Property. 5.7. Forestry Use: Grantor may remove trees from the Protected Property when required for safety, fire protection, salvage purposes, pest control, disease control, restoration, domestic use, or as necessary to benefit Agricultural Activities (the "Forestry Activities"). All Forestry Activities on the Protected Property shall be carried out in compliance with the Purpose and terms of this Easement. Grantor shall not engage in or permit any Forestry Activities that would preclude the opportunity for agricultural activity upon the Protected Property. The provisions of this Section 5.7 shall not apply to the commercial production of Christmas trees not subject to the excise tax imposed by RCW §§84.33.100 through 84.33.140. 5.8. Emergencies: Grantor may undertake any activities that are necessary to protect health or safety or prevent significant property damage on the Protected Property or are required by and subject to compulsion of any governmental agency; provided, however, that Grantor shall first reasonably attempt to notify Grantee and Co -Grantee prior to taking such action. If Grantee and Co -Grantee cannot provide consent, with or without conditions, within such time as is reasonable under the circumstances, Grantor may proceed with such action without consent. 6. PROHIBITED USES AND RESTRICTIONS ON PERMITTED USES 6.1. General. Any use of, or activity on, the Protected Property inconsistent with the Purpose or other terms of the Easement is prohibited, and Grantor acknowledges and agrees that it will not conduct, engage in, or permit any such use or activity. Without limiting the generality of the foregoing, and except as permitted in Section 5 above, the following uses of, or activities on, the Protected Property are either (a) inconsistent with the Agricultural Conservation Values and Purpose of this Easement and prohibited herein or (b) limited as provided herein to make such uses or activities consistent with the Agricultural Conservation Values and Purpose of this Easement. 6.2. No Conversion to Incompatible Uses. Grantor shall not convert the Protected Property to industrial or suburban/residential development or to any other use that is incompatible with maintaining the opportunity for agricultural activity on the Protected Property. 6.3. Limitations on Subdivision. The Protected Property may not be further divided, partitioned, or subdivided except in its current configuration. "Current configuration" means the entire Protected Property, i.e. all the separate legal parcels that make up the Protected Property taken together as one whole entity. 6.4. Water Rights -10- FINAL DRAFT 1/16/2020 6.4.1 In furtherance of the Purpose of this Easement, Grantor shall cooperate with Grantee and Co -Grantee to help assure the maintenance of the Dedicated Water Rights. 6.4.2 Except as expressly provided in this section, Grantor shall not transfer, encumber, sell, lease or otherwise separate the Dedicated Water Rights from the Protected Property. 6.4.3 Grantor shall not abandon, relinquish or otherwise lose or forfeit, by action or inaction, any of the Dedicated Water Rights. 6.4.4 Grantor shall take affirmative actions to avoid such abandonment, relinquishment, loss or forfeiture, including but not limited to the following: i) exercising the Dedicated Water Rights by putting them to beneficial use in accordance with RCW §90.14; ii) seeking to place or enroll the Dedicated Water Rights in the Washington State trust water rights program on a temporary basis, provided that any acquisition of the Dedicated Water Rights by the State shall be expressly conditioned to limit its use to instream purposes and its duration to a term no longer than 10 years; and/or (iii) seeking to lease the Dedicated Water Rights for use on land other than the Protected Property for a term no longer than 10 years, with prior written notice to and consent of Grantee and notice to Co -Grantee, after obtaining approval in accordance with RCW §§90.03.380, 90.03.383, 90.03.390, or 90.44.100 for a temporary transfer or change of the Water Rights; provided, however, that any such lease shall require the lessee to make beneficial use of the Dedicated Water Rights in accordance with RCW §90.14 and for Agricultural Activities only (collectively "Water Rights Maintenance Actions"). If Grantor is unable to take one or more of the Water Rights Maintenance Actions and the Dedicated Water Rights are under threat of abandonment, relinquishment, loss or forfeiture, Grantor shall convey ownership of said rights to the State Water Rights Trust Program on a temporary basis as defined in 6.10.4 (ii) in order to avoid relinquishment and allow the rights to be withdrawn at the request of the Grantor, Grantee or Co -Grantee in order to maintain the opportunity for agricultural activity on the Protected Property. 6.4.5 Any relinquishment, loss or forfeiture of the Dedicated Water Rights shall not be deemed or construed to be a waiver of Grantee or Co -Grantee's rights under this Easement or to defeat the Purpose of this Easement, and shall not otherwise impair the validity of this Easement or limit its enforceability in any way. 6.5. Limitations on Agricultural Use. -11- FINAL DRAFT 1116/2020 6.5.1. The establishment or maintenance of a commercial feedlot is prohibited. For purposes of this Easement, a commercial feedlot is defined as a permanently constructed confined area or facility within which the land is not grazed or cropped annually, and that is used to receive livestock that are confined solely for the purpose of growing or finishing. However, seasonal confinement of animals raised on the Protected Property and year-round confinement for the commercial production of dairy products on the Protected Property are expressly permitted. Furthermore, nothing in this Section shall prevent Grantor from leasing pasture for the grazing of livestock owned by others. 6.5.2. Grantor shall not engage in, or permit others to engage in, the commercial production of cultivated marine or freshwater aquatic products on the Protected Property. 6.5.3. Horticultural crops, such as ornamental trees and shrubs, and the continuous production of sod or other crops where soil is removed above tolerable limits is prohibited. 6.6. Limitations on Improvements. Grantor may build or rebuild Improvements only in a manner consistent with the following absolute limit on Impervious Surfaces (as defined below) and other Improvement -related limitations: 6.6.1. Impervious Surfaces Limitation. 6.6.1.1.As used herein, "Impervious Surfaces" means material that does not allow water to percolate into the soil on the Protected Property, including, but not limited to, buildings with or without flooring, paved areas, and any other surfaces that are covered by asphalt, concrete, or roofs.. Impervious Surfaces do not include an open uncovered flow control or storage area or water quality treatment facility, provided that the construction and maintenance of such area or facility is consistent with the Purpose and terms of this Easement. 6.6.1.2. The total area of the Protected Property covered by Improvements of any kind and Impervious Surfaces shall be limited to no more than two percent (2%) of the area of the Protected Property; provided, however, that minor unenclosed agricultural improvements such as corrals, hayracks, headgates, fences, ditches, culverts, stock tanks, or other minor agricultural structures ("Minor Agricultural Improvements") may be constructed or placed on the Protected Property and not count against this total impervious surface limit. While graveled surfaces that allow water to percolate into the soil are not considered Impervious Surfaces, the total amount of gravel plus Impervious -12- FINAL r P I!. 1 1/16/2020 Surfaces shall never exceed four percent (4%) of the total area of the Protected Property. 6.6.2. Limitations on Building Envelope Improvements 6.6.2.1. Building Envelope Improvements for Agricultural Activities. Within the two building envelopes totaling approximately twenty (20) acres and described and shown on Exhibit "C" ("Building Envelopes"), and subject to the limits on Impervious Surfaces in this Section 6.6, Grantor may maintain, repair, replace, decommission, expand, or enlarge Improvements existing on the Protected Property as of the Effective Date of this Easement and may install, build or construct, expand, enlarge, maintain, repair, replace or decommission Improvements not existing as of the Effective Date of this Easement. Grantor may build new, additional agricultural buildings within the Building Envelopes, subject to the impervious surface restrictions in Section 6.6.1 and other conditions in Sections 5 and 6 above. 6.6.2.2. Building Envelope Improvements for Nonagricultural Activities. For personal and domestic uses and activities and other nonagricultural activities within the Building Envelopes, and subject to the limits on Impervious Surfaces in this Section 6.6 and the limits on Dwelling Units in Section 5.4.3 above, Grantor may maintain, repair, replace, decommission, expand or enlarge Improvements existing on the Property as of the Effective Date of this Easement, and may install, build or construct, expand, enlarge, maintain, repair, replace or decommission Improvements not existing as of the Effective Date of this Easement, if Grantor provides Grantee and Co - Grantee advance written notice of the proposed new, expanded or enlarged Improvements and consent is given by Grantee and Co -Grantee for such proposed Improvements as provided for in Section 7, which consent shall not be withheld provided all such proposed Improvements are confirmed to be located completely within the Building Envelopes and otherwise comply with this Easement. 6.6.3. Limitations on New Improvements Outside the Building Envelopes 6.6.3.1.Outside the Building Envelopes, Grantor shall not expand or enlarge Improvements existing on the Property as of the Effective Date or install, build, or construct new Improvements not existing as of the Effective Date unless such Improvements are consented to in writing in advance by Grantee and Co -Grantee as provided for in Section 7 and such Improvements are necessary for Agricultural Activities (excluding Accessory Uses) and in compliance with the total impervious surface limit of Section 6.6.1., provided, however, that Grantor may install, build or construct, expand or enlarge Minor Agricultural Improvements without providing such notice or receiving such consent. -13- FINAL. DRAFT 1116/2020 6.6.3.2.Nonagricultural Accessory Uses, including, without limitation the Dwelling Units, shall not be located outside the Building Envelopes, with the exception of a well or drain field which may be located outside of the Building Envelopes to the extent necessary to make a Dwelling Unit habitable and shall not otherwise convert more than one acre of agricultural land to nonagricultural uses. 6.6.4. Alternative Energy Production. Grantor may install, build, or construct Improvements for alternative energy production (micro -hydro, micro -wind or micro -solar power) exclusively for generating energy for the permitted uses on the Protected Property with advance written notice to Grantee and Co -Grantee and consent of Grantee for such Improvements as provided for in Section 7, which consent shall not be unreasonably withheld, and provided no access or other easement across the property is required which is inconsistent with the Purpose of this Easement. This is subject to local legal limits on wind power generation as required by Section 6.12 and other applicable local regulations. 6.6.5. Limitations on Improvements Related to Advertising. Commercial signs, billboards, or other improvements installed, built or constructed for the purpose of advertising nonagricultural activities or products are not allowed on the Protected Property, except in connection with the sale or lease of the Protected Property or to state the conditions of access to the Protected Property. Signage consistent with the character of a working farm, and for Agricultural Activities, is allowed on the Protected Property. 6.7. Limitations on Mining: Grantor shall not conduct, engage in, or permit the commercial mining or commercial extraction of soil, sand, gravel, oil, natural gas, fuel, or any other mineral substance, using any surface mining method. Grantor may conduct or engage in mineral extraction of soil, sand, and gravel solely for a permitted use on the Protected Property in a manner consistent with the purpose of this Easement and all applicable laws and regulations, minimal in scope and impact, and not exceeding one- half acre. 6.8. Limitations on Alteration of Land. Grantor shall not alter the surface of the land, including, without limitation, grading, excavating or removing soil, sand, gravel, rock, stone, aggregate, peat, or sod, except as provided below. 6.8.1. Notwithstanding anything in this Section or Section 6.7 to the contrary, soil, sand, gravel, rock, stone, aggregate, peat or sod may be extracted without further consent from Grantee so long as such extraction is solely for use on the Protected Property, is in conjunction with permitted Agricultural Activities, is revegetated promptly after extraction is complete, and is accomplished in a manner that is consistent with the Purpose and terms of this Easement. -14- FINAL DRAFT 1/16/2020 6.8.2. Notwithstanding anything in this Section to the contrary, prior to extraction activities or developing improvements as referenced herein, Grantor shall comply with all applicable state and federal laws and shall give notice to and receive consent from Grantee as provided for in Section 7 with respect to any alteration of land that would have the effect of physically disturbing a known cultural site. 6.9. No Significant Erosion or Pollution: Grantor shall not engage in any use or activity that causes or is likely to cause significant soil degradation or erosion or significant contamination or pollution of any soils or surface or subsurface waters on the Protected Property. This prohibition is not intended to limit the grazing or pasturing of cattle on the Protected Property to any greater extent than applicable local, state, or federal laws and regulations related to soil and water protection. 6.10. Limitations on Waste Disposal. 6.10.1. Grantor may accumulate and store ashes, garbage or other waste ("Trash") on the Protected Property only if such accumulation occurs in the normal course of domestic or Agricultural Activities on the Protected Property. Long-term accumulation of Trash (i.e., exceeding one calendar year in time) may occur within areas designated by Grantor with prior notice to Grantee and Co -Grantee and written consent of Grantee as long as such waste is either destined for transfer off-site, or for incineration on-site, or, in the case of biodegradable material, composted on-site. 6.10.2. Grantor shall not otherwise dispose of or Release (or permit the disposal or release of) any Hazardous Substance on the Protected Property. The term "Release" shall mean any release, generation, treatment, disposal, dumping, burying, or abandonment. The term "Hazardous Substance" shall mean any substances, materials, or wastes that are hazardous, toxic, dangerous, or harmful or are designated as, or contain components that are, or are designated as, hazardous, toxic, dangerous, or harmful and/or which are subject to regulation as hazardous, toxic, dangerous, or harmful or as a pollutant by any federal, state, or local law, regulation, statute, or ordinance, including, but not limited to, petroleum or any petroleum product. The term "Hazardous Substances" shall not include biosolids, herbicides, pesticides, rodenticides, insecticides, and fertilizers applied in accordance with federal, state, and local law. Any storage and disposal of Hazardous Substances shall be in accordance with federal, state, and local law. 6.11. No Compensatory Mitigation. The creation, enhancement, restoration or preservation of wetlands, fish or wildlife habitat, or other natural resources for the purpose of, directly or indirectly, compensating for or mitigating resource losses or damages in any way associated with actual or potential impacts of development except -15- FINAL DRAFT 1/16/2020 for impacts caused by Grantor on the Protected Property ("Compensatory Mitigation") is prohibited on the Protected Property. Compensatory Mitigation includes, but is not limited to, mitigation banking, conservation banking, and any other sale or exchange of mitigation credits based on the creation, restoration, enhancement and/or preservation of such natural resources within the Protected Property. 6.12. Compliance with Regulatory Requirements. Grantor shall conduct all reserved and permitted uses and activities under this Easement to meet all requirements of federal, state and local statutes, rules, and regulations as they may be amended from time to time. 6.13. Limitation on Transfers. 6.13.1. For purposes of this Section, "Transfer" includes but is not limited to any sale, grant, lease, hypothecation, encumbrance, assignment, conveyance, or any transaction the purpose of which is to effect a sale, grant, lease, hypothecation, encumbrance, assignment, or conveyance. 6.13.2. Except as provided in Sections 6.13.3 and 6.13.4, Grantor shall not undertake or permit any Transfer of any rights in the Protected Property without prior notice to Grantee and Co -Grantee and consent of Grantee as provided for in Section 7; provided, however, that such consent shall not be withheld unless Grantee determines that the proposed Transfer would be inconsistent with the Purpose and terms of this Easement. 6.13.3. The following shall require notice to but shall not require consent of Grantee and Co -Grantee: i) any gift, bargain, sale or devise of fee simple title to the Protected Property; ii) any mortgage, deed of trust, or similar document providing security for an indebtedness of Grantor, provided that such security interest shall be subject and subordinate to this Easement; iii) leases for telecommunications installations or wind energy installations within the Building Envelopes, as provided for in Section 6.6.2.2; and iv) temporary transfers or leases of the Dedicated Water Rights. 6.13.4. The following shall require no notice to or consent of Grantee or Co -Grantee: a leasehold interest for agricultural purposes, provided, however, that the lease shall expressly describe this Easement. 7. NOTICE AND CONSENT 7.1 Notice. 7.1.1 Grantee. Certain provisions of this Easement require Grantee to give notice to Grantor prior to undertaking certain activities. Whenever such notice is required, -16- FINAL DRAFT 1/16/2020 and no other timeline for notice is set forth elsewhere in this Easement, Grantee shall provide such notice in writing not less than thirty (30) days prior to the date Grantee intends to undertake the use or activity in question. Grantee shall provide a copy of any such notice to Co -Grantee and/or each Beneficiary of this Easement concurrently with notice to Grantor. 7.1.2 Grantor. Certain provisions of this Easement require Grantor to give notice to Grantee, Co -Grantee, NRCS, and/or RCO prior to undertaking certain permitted uses and activities (e.g., Sections 5 and 6). The purpose of requiring Grantor to notify Grantee, Co -Grantee, NRCS, and RCO prior to undertaking these permitted uses and activities is to afford Grantee, Co -Grantee, NRCS, and RCO an adequate opportunity to ensure that the use or activity in question is designed and carried out in a manner consistent with the Purpose of this Easement. Whenever such notice is required, and no other timeline for notice is set forth elsewhere in this Easement, Grantor shall provide such notice in writing not less than) sixty (60) days prior to the date Grantor intends to undertake the use or activity in question. The notice shall describe the nature, scope, design, location, timetable, and any other material aspect of the proposed use or activity in sufficient detail to permit Grantee to make an informed judgment as to its consistency with the terms of this Easement and the Purpose thereof. Upon receipt of such notice, Grantee shall immediately forward a copy to Co -Grantee and each Beneficiary of this Easement. 7.2 Consent 7.2.1 Consent by Co -Grantee and Beneficiaries is Required. Wherever in this Easement Grantee's consent is required, such consent may be required of Co - Grantee and each Beneficiary to this Easement. 7.2.2 Consent Not Unreasonably Withheld. Wherever in this Easement a Party's or a Beneficiary's consent is required, such consent may be withheld only upon a reasonable determination by the consenting party that the action as proposed would be inconsistent with the Purpose or terms of this Easement and cannot be modified to make the proposed action consistent with the Purpose and terms of this Easement. Any consent may include reasonable conditions consistent with the Purpose and terms of this Easement that must be satisfied in undertaking the proposed action, use, or activity. 7.2.3 Timeline for Consent. Whenever in this Easement Grantor's or Grantee's consent is required, and no other timeline for consent is set forth elsewhere in this Easement, the party whose consent is required shall grant or withhold its consent in writing within the following time periods: -17- FINAL DRAFT 1/16/2020 7.2.3.1 Grantor. Where consent by Grantor is required under this Easement, Grantor shall grant or withhold its consent within sixty (60) days of receipt of a written request for consent. 7.2.3.2 Grantee. Where consent by Grantee is required under this Easement, Grantee shall grant or withhold its consent within sixty (60) days of receipt of a written request for consent. 7.2.3.3 Co -Grantee. Where consent by Co -Grantee is required under this Easement, Co -Grantee shall grant or withhold its consent within thirty (30) days of receipt of Grantee's written decision to grant or withhold consent or within ninety (90) days of receipt of Grantor's written request for consent, whichever comes later. 7.2.3.4 Beneficiaries. Where consent by any Beneficiary is required under this Easement, the Beneficiary shall grant or withhold its consent within thirty (30) days of receipt of Grantee's written decision to grant or withhold consent or within ninety (90) days of receipt of Grantor's written request for consent, whichever comes later. 7.2.4 Failure to Grant or Deny Consent Within the Required Time. When consent is required under this Easement, and when such consent is not granted or denied within the time period and manner set forth in this Section 7, the party requesting consent may conclusively assume the other party's consent of the proposed action, use, or activity in question. The Parties and each of the Beneficiaries agree that failure to grant or withhold consent within the required time on any proposed action, use or activity shall not be deemed or construed to be a waiver of Grantee's, Co -Grantee's, or any Beneficiary's rights under this Easement with respect to any future proposed action, use or activity. 7.2.5 Emergencies. In emergency situations, the Parties acknowledge that Grantor may not be able to comply with the notice and consent timelines in this Section 7. As such, Grantor may undertake any activities that are necessary to protect health or safety or prevent imminent and significant property damage on the Protected Property, or as required by and subject to compulsion of any governmental agency; provided, however, that Grantor shall first attempt to notify Grantee and Co -Grantee prior to taking such action where notice is otherwise required under this Easement. If Grantee and Co -Grantee cannot provide required consent, with or without conditions, within such time as is reasonable under the circumstances, Grantor may proceed with such action without consent. 7.3 Optional consultation. If Grantor is unsure whether a proposed use or activity is prohibited by this Easement, Grantor may consult Grantee by providing written notice to Grantee describing the nature, scope, design, location, timetable, and any other material aspect of the proposed use or activity in sufficient detail to permit Grantee to make an informed judgment as to its consistency with the Purpose of this Easement 9 NO FINAL 1.1h' 1 , and to provide comments thereon to Grantor. This Section 7.3 does not itself impose a requirement of prior consent of the activity described in any such notice. 7.4 Addresses for Notices. Any notice, demand, request, consent, concurrence, approval, or communication that any party desires or is required to give to the other shall be in writing either served personally or sent by registered mail or overnight courier with proof of delivery, addressed as follows (or to such other address as any party from time to time shall designate by written notices to each other party): To Grantor: Brent Minor and Mary Minor 8001 Naneum Road Ellensburg, WA 98926 Phone: 509-899-5858 To Grantee: Kittitas County 411 North Ruby, Suite 1 Ellensburg, WA 98926 Phone: 509-962-7506 To Co -Grantee: Forterra NW 901 5a' Ave., Suite 2200 Seattle, WA 98164 Phone: 206-292-5907 To RCO- Recreation and Conservation Office Director 1111 Washington St SE, Olympia, WA 98502 PO Box 40917, Olympia, WA 98504-0917 Phone: 360-902-3000 To the NRCS: State Conservationist U.S. Natural Resources Conservation Service Washington State Office 316 W. Boone Ave., Suite 450 Spokane, WA 99201-2348 Phone: 509-323-2900 8 DISPUTE RESOLUTION 8.1 Preventive Discussions. 8.1.1 Grantor, Grantee, and Co -Grantee will promptly give the other Parties notice of problems or concerns arising in connection with the others' actions under this Easement or the use of or activities or conditions on the Protected Property, and -19- FINAL DRAFT 1/16/2020 will meet as needed, but no later than fifteen (15) business days after receipt of a written request for a meeting, to minimize the same. 8.1.2 Grantee shall invite each Beneficiary to this Easement to such preventive discussion meetings provided for in this Section 8, however, the Beneficiaries are not required to attend such meetings. 8.2 Mediation. If the Parties disagree as to the consistency of any proposed use or activity with the Purpose or terms of this Easement and the Parties are unable to resolve such disagreement through unassisted preventive discussions between themselves and each Beneficiary to this Easement, and if Grantor agrees not to proceed with the use or activity pending resolution of the dispute, Grantor, Grantee and/or Co -Grantee shall refer the dispute to mediation by request made in writing upon the other and with notice to NRCS and RCO (who have full discretion to participate or not to participate in the mediation). Within ten (10) business days of the receipt of such a request, the parties to the mediation ("Mediation Parties") shall select a single impartial mediator. Mediation shall then proceed in accordance with the following guidelines: 8.2.1 Purpose. The purpose of the mediation is to: (a) promote discussion among the Mediation Parties; (b) assist the Mediation Parties to develop and exchange pertinent information concerning the issues in dispute; and (c) assist the Mediation Parties to develop proposals which enable them to arrive at a mutually acceptable resolution of the controversy. The mediation is not intended to result in any express or de facto modification or amendment of the terms, conditions or restrictions of this Easement. 8.2.2 Participation. The mediator may meet with the Mediation Parties and their counsel jointly or ex parte. The Mediation Parties agree that they will participate in the mediation process in good faith and expeditiously, attending all sessions scheduled by the mediator. Representatives of all Mediation Parties with settlement authority will attend mediation sessions as requested by the mediator. 8.2.3 Confidentiality. All information presented to the mediator shall be deemed confidential and shall be disclosed by the mediator only with the consent of the Mediation Parties or their respective counsel. The mediator shall not be subject to subpoena by any party. No statements made or documents prepared for mediation sessions shall be disclosed in any subsequent proceeding or construed as an admission of a party. Records of mediation communications shall be exempt from the requirements of Chapter 42.56 RCW (Washington State Public Records Act) to the extent provided for in Chapter 7.07 RCW (Washington State Uniform Mediation Act). 8.2.4 Time Period. Neither party shall be obligated to continue the mediation process beyond a period of sixty (60) days from the date of receipt of the initial request -20- FINAL DRAFT 111612020 or if the mediator concludes that there is no reasonable likelihood that continuing mediation will result in a mutually agreeable resolution of the dispute. 8.2.5 Costs. The costs of the mediator shall be borne equally by the Parties; the Mediation Parties shall bear their own expenses, including attorney's fees, individually. 8.3 Arbitration. In the event the Parties are unable to resolve such disagreement through mediation,the Parties and each Beneficiary may by mutual agreement submit disputed matters to arbitration upon such rules of arbitration as Grantor, Grantee, Co -Grantee and each Beneficiary may agree. 9 GRANTEE'S AND CO -GRANTEE'S REMEDIES 9.1 Grantee and Co -Grantee's Rights and Obligations. The Grantee shall have the primary responsibility of monitoring and enforcing this easement, including but not limited to accessing the Protected Property at least once per year to monitor use and activities in accordance with Section 4.2.1 above and as required by funding sources, determining if a violation has occurred, providing or withholding consent to Grantor, and for approving any amendments to the Deed of Conservation Easement. Remote sensing may be used to document land changes and new construction. Annual onsite inspection is required to monitor the following: sheet erosion; erosion from concentrated flow; runoff from heavy use areas; conditions of waterways, diversions, and riparian areas; and other changes in the baseline conditions. Grantee will share with the Co -Grantee monitoring and stewardship information, including but not limited to monitoring reports at least annually and any written notices or consents to and/or from Grantor. The Grantee is responsible for any costs incurred in enforcing the terms of the easement, including any attorney's fees and any costs of the suit. Grantee may recover costs from Grantor and/or a third party as described in this Section 9. Grantee shall alert Co -Grantee to any potential or actual violation of the Easement as soon as practically possible following discovery of such violation, and Grantee and Co - Grantee shall make good faith efforts to determine a unified course of action should a potential or actual violation of the Easement arise. Co -Grantee shall have the right to monitor and enforce the terms of the Easement if Grantee becomes unable or fails to enforce the Easement, or if Co -Grantee in its sole discretion finds that Grantee's enforcement action or consent to Grantor fails to protect the conservation purposes of the Easement. Grantee shall reimburse Co -Grantee for all costs incurred in monitoring and enforcing the easement. 9.2 Notice of Non -Compliance. If Grantee or Co -Grantee determine that the Grantor is in violation of the terms of this Easement or that a violation is likely to occur, Grantee or Co -Grantee shall give written notice to Grantor of such violation and demand -21- FINAL DRAFT 1/16/2020 corrective action sufficient to cure the violation and, where the violation involves injury to the Protected Property resulting from any use or activity inconsistent with the Purpose or terms of this Easement, to restore the portion of the Protected Property so injured to its prior or potential condition in accordance with a plan to which Grantee and Co -Grantee have given consent. 9.3 Grantor's Failure to Respond. Grantee or Co -Grantee may bring an action as provided in Section 9.3 if Grantor: 9.3.1 Fails to cure the violation within thirty (30) days after receipt of notice thereof from Grantee or Co -Grantee; 9.3.2 Under circumstances where the violation cannot reasonably be cured within the thirty (30) day period, fails to begin curing such violation within the thirty (30) day period; or 9.3.3 Fails to continue diligently to cure such violation until finally cured. 9.4 Grantee's or Co -Grantee's Action. Grantee or Co -Grantee may bring an action at law or in equity, or both, in a court of competent jurisdiction to enforce the terms of this Easement, to enjoin the violation, ex parte as necessary and as allowed under the applicable civil rules, by temporary or permanent injunction, to recover any damages to which it may be entitled for violation of the terms of this Easement or injury to any of the Agricultural Conservation Values protected by this Easement, including damages for the loss of the Agricultural Conservation Values; and to require the restoration of the Protected Property to the condition that existed prior to any such injury. Without limiting Grantor's liability therefor, Grantee or Co -Grantee, in their sole and absolute discretion, may apply any damages recovered to the cost of undertaking any corrective action on the Protected Property provided, however, that Co -Grantee shall obtain Grantee's and Beneficiaries' consent before applying any such damages. All such actions for injunctive relief may be taken without Grantee or Co - Grantee being required to post bond or provide other security. 9.5 Immediate Action Required. Notwithstanding any other provision of this Easement, if Grantee or Co -Grantee, in their sole and absolute discretion, determine that circumstances require immediate action to prevent or mitigate significant damage to the Agricultural Conservation Values, Grantee or Co -Grantee may pursue their remedies under this Section 9 without prior notice to Grantor, without participation in dispute resolution as provided for in Section 8, or without waiting for the period provided for cure to expire. 9.6 Nature of Remedy. Grantee's and Co -Grantee's rights under this Section 9 apply equally in the event of either actual or threatened violations of the terms of this Easement. Grantor agrees that Grantee's and Co -Grantee's remedies at law for any -22- FINAL /) Rt IFTM 6/2020 violation of the terms of this Easement are inadequate, and that Grantee and Co - Grantee shall be entitled to the injunctive relief described in this Section 9 both prohibitive and mandatory, in addition to such other relief to which Grantee and Co - Grantee may be entitled, including specific performance of the terms of this Easement, without the necessity of proving either actual damages or the inadequacy of otherwise available legal remedies. Grantee's and Co -Grantee's remedies described in this Section 9 shall be cumulative and shall be in addition to all remedies now or hereafter existing at law or in equity. The provisions of Section 9.6 shall not be interpreted to preclude Grantee or Co -Grantee from obtaining injunctive relief. 9.7 Damages. Inasmuch as the actual damages to the Agricultural Conservation Values that could result from a breach of this Easement by Grantor would be impractical or extremely difficult to measure, the Parties agree that the money damages Grantee and/or Co -Grantee are entitled to recover from Grantor shall be, at Grantee's and/or Co -Grantee's election, the higher of (i) the amount of economic gain realized by Grantor from violating the terms of the Easement or (ii) the cost of restoring any Agricultural Conservation Values that have been damaged by such violation. In the event Grantee or Co -Grantee chooses the second of these two measures, Grantor agrees to allow Grantee, Co -Grantee, their agents or contractors, to enter upon the Protected Property and conduct restoration activities. 9.8 Costs of Enforcement. In the event Grantor, Grantee, or Co -Grantee finds it necessary to bring an action at law or other proceeding against the other party to enforce or interpret any of the terms, covenants, or conditions of this Easement, the prevailing party in any such action or proceeding shall be paid all costs and reasonable attorneys' and consultants' fees by the other party and all such costs and attorneys' and consultants' fees shall be included in any judgment secured by such prevailing party. 9.9 Grantee's Discretion. Enforcement of the terms of this Easement shall be at the discretion of the Grantee, or in the absence of action by Grantee, at the discretion of the Co -Grantee. Any forbearance by Grantee or Co -Grantee to exercise its rights under this Easement in the event of any breach of any terms of this Easement by Grantor shall not be deemed or construed to be a waiver by Grantee or Co -Grantee of such term or of any of Grantee's or Co -Grantee's rights under this Easement. No delay or omission by Grantee or Co -Grantee in the exercise of any right or remedy upon any breach by Grantors shall impair such right or remedy or be construed as a waiver. 9.10 Waiver of Certain Defenses. Grantor acknowledges that it has carefully reviewed this Easement and has consulted with and been advised by legal counsel of its terms and requirements. In full knowledge of the provisions of this Easement, Grantor hereby waives any claim or defense it may have against Grantee, Co -Grantee, or their successors in interest under or pertaining to this Easement based upon abandonment, -23- adverse possession or prescription relating to the Protected Property or this Easement. Except for the foregoing, Grantor specifically retains any and all rights it has under the law as owner of the Protected Property, including, without limitation, the right to bring claims against Grantee or Co -Grantee for any breach by Grantee or Co -Grantee of the terms of this Easement. 9.11 Acts Beyond Grantor's Control. Nothing contained in this Easement shall be construed to entitle Grantee or Co -Grantee to bring any action against Grantor to abate, correct, or restore any condition on the Protected Property or to recover damages for any injury to or change in the Protected Property resulting from actions by a trespasser upon the Protected Property or causes beyond Grantor's control, including, without limitation, natural disaster, fire, flood, storm, pest infestation, earth movement, and climate change, and from any prudent action taken by Grantor under emergency conditions to prevent, abate, or mitigate significant injury to the Protected Property resulting from such causes. In the event the terms of this Easement are violated by acts of trespassers, and Grantor has not undertaken suit itself, Grantor agrees, at Grantee's and Co -Grantee's option, to assign its right of action to Grantee and Co -Grantee, or to appoint Grantee and Co -Grantee its attorneys in fact, for purposes of pursuing enforcement action against the responsible parties. 9.12 Compliance Certificates. Upon request by Grantor, Grantee and Co -Grantee shall, as soon as possible and no later than thirty (30) days after receipt of such request, execute and deliver to Grantor any document, including an estoppel certificate, which certifies, to the best of Grantee's and Co -Grantee's knowledge, Grantor's compliance or lack thereof with any obligation of Grantor contained in this Easement and otherwise evidences the status of this Easement as requested by Grantor. Such certification shall be limited to the condition of the Protected Property as of Grantee's and Co -Grantee's most recent inspection. If Grantor requests more current documentation, Grantee or Co -Grantee shall conduct an inspection, at Grantor's expense, within forty-five (45) days of receipt of Grantor's written request and payment therefor. Any Beneficiary to this Easement shall not be estopped from claiming or enforcing a violation of this Easement unless such Beneficiary has also executed the Compliance Certificate. 10 LIABILITIES, TAXES, AND ENVIRONMENTAL COMPLIANCE 10.1 Liabilities and Insurance. Grantor retains all responsibilities and shall bear all costs and liabilities of any kind related to the ownership, operation, upkeep, and maintenance of the Protected Property, including the maintenance of adequate liability insurance coverage. Such insurance shall include Grantee's and Co -Grantee's interest, name Grantee and Co -Grantee as an additional insured, and provide for at least thirty (30) days notice to Grantee and Co -Grantee before cancellation and that the act or omission of one insured will not invalidate the policy as to the other insured party. The Parties release and relieve the other, and waive their entire right to recovery for loss or damage -24- FINAL DRAFT 1/1612020 to the extent that the loss or damage is covered by the injured party's insurance. This waiver applies whether or not the loss is due to the negligent acts or omissions of Grantor, Grantee or Co -Grantee. Grantor remains solely responsible for obtaining any applicable governmental permits and approval for any construction or other activity or use permitted by this Easement, and all such construction or other activity or use shall be undertaken in accordance with all applicable federal, state, and local laws, regulations, and requirements. Grantor shall keep the Protected Property free of any liens arising out of any work performed for, material furnished to, or obligations incurred by Grantor; provided that the Protected Property shall be deemed to be free of such liens if i) Grantor or Grantee, as the case may be, is diligently challenging the application of such liens to the Protected Property; or ii) such liens are subordinated to this Easement and do not require any action or inaction inconsistent with the Purpose and terms of this Easement. 10.2 Taxes. Grantor shall pay before delinquency all taxes, assessments, fees, charges of whatever description levied on or assessed against the Protected Property by competent authority (collectively "taxes"), including any taxes imposed upon, or incurred as a result of, this Easement, and shall furnish Grantee and Co -Grantee with satisfactory evidence of payment upon request. 10.3 Liability. Grantor shall hold harmless, indemnify, and defend Grantee, Co -Grantee, each Beneficiary to this Easement, and their members, directors, officers, employees, agents, and contractors(collectively, "Indemnified Parties") from and against any and all liabilities, penalties, costs, losses, damages, expenses, causes of action, claims, demands, or judgments, including, without limitation, reasonable attorneys' and consultants' fees, arising from or in any way connected with injury to or the death of any person, or physical damage to any property resulting from any act, omission, condition, or other matter (including the release of hazardous or toxic substances) related to or occurring on or about the Protected Property that is not a consequence of any action or omission of any of the Indemnified Parties on or about the Protected Property. 10.4 Representations and Warranties. Grantor represents and warrants that, to the best of Grantor's knowledge: 10.4.1 Grantor and the Protected Property are in compliance with all federal, state, and local laws, regulations, and requirements applicable to the Protected Property and its use; 10.4.2 There has been no release, dumping, burying, abandonment or migration from off-site on the Protected Property of any substances, materials, or wastes that are or are designated as, hazardous, toxic, dangerous, or harmful or contain components that are, or are designated as, hazardous, toxic, dangerous, or -25- FINAL DRAFT 1/16/2020 harmful and/or that are subject to regulation as hazardous, toxic, dangerous, or harmful by any federal, state or local law, regulation, statute, or ordinance; 10.4.3 Neither Grantor nor Grantor's predecessors in interest have disposed of any hazardous substances off-site, nor have they disposed of substances at sites designated or proposed to be designated as federal Superfund (42 U.S.C. §9601 et seq.) or state Model Toxics Control Act (RCW §70.105D.010 et seq.) ("MTCA") sites; and 10.4.4 There is no pending or threatened litigation affecting the Protected Property or any portion of the Protected Property that will materially impair the Agricultural Conservation Values of any portion of the Protected Property. No civil or criminal proceedings have been instigated or are pending against Grantor or its predecessors by government agencies or third parties arising out of alleged violations of environmental laws, and neither Grantor nor its predecessors in interest have received any notices of violation, penalties, claims, demand letters, or other notifications relating to a breach of environmental laws. 10.5 Remediation. If, at any time, there occurs, or has occurred, a Release in, on, or about the Protected Property of a Hazardous Substance, Grantor agrees to take or compel responsible third parties to take all steps required under applicable law and necessary to assure its containment and remediation, including any cleanup that may be required (except that the use of institutional controls shall not be allowed without Grantee's consent), unless the Release was caused by Grantee, in which case Grantee shall be responsible for such remediation to the extent the Release was caused by Grantee. At its discretion, Grantee may assist Grantor in compelling third parties to contain and remediate any such Release. 10.6 Environmental Warranty and Indemnification. Grantor warrants that it is in compliance with, and will remain in compliance with, all applicable Environmental Laws. Grantor warrants that there are no notices by any governmental authority of any violation or alleged violation of, noncompliance or alleged noncompliance with or any liability under any Environmental Law relating to the operations of conditions of the Protected Property. Grantor further warrants that it has no actual knowledge of a release or threatened release of Hazardous Materials, as such substances and wastes are defined by applicable Federal and State law. Moreover, Grantor hereby promises to hold harmless and indemnify NRCS, RCO and the Grantees against all litigation, claims, demands, penalties, and damages, including reasonable attorneys' fees, arising from or connected with the release or threatened release of any Hazardous Materials on, at, beneath, or from the Protected Property, or arising from or connected with a violation of any Environmental Laws by Grantor or any other prior owner of the Protected Property. Grantor"s indemnification obligation will not be affected by any authorizations provided by the Grantees, RCO or the United -26- FIRTAL DRAFT 1/16/2020 States to the Grantor with respect to the Protected Property or any restoration activities carried out by Grantee at the Protected Property; provided, however, that the Grantees are responsible for any Hazardous Materials contributed after this date to the Protected Property by the Grantees. The terms `Environmental Law" and `Environmental Laws" mean any and all Federal, State, local, or municipal laws, rules, orders, regulations, statues, ordinances, codes, guidelines, policies, or requirements of any governmental authority regulating or imposing standards of liability or standards of conduct (including common law) concerning air, water, solid waste, hazardous materials, worker and community right - to -know, hazard communication, noise, radioactive materials, resource protection, subdivision, inland wetlands and watercourses, health protection and similar environmental health, safety, and building and land use as may now or at any time hereafter be in effect. The terms "Hazardous Materials" means any petroleum, petroleum products, fuel oil, waste oils, explosives, reactive materials, ignitable materials, corrosive materials, hazardous chemicals, hazardous wastes, hazardous substances, extremely hazardous substances, toxic substances, toxic chemicals, radioactive materials, infectious materials, and any other element, compound, mixture, solution or substance that may pose a present or potential hazard to human health or the environment. 10.7 Control. Nothing in this Easement shall be construed as giving rise, in the absence of a judicial decree, to any right or ability in Grantee, Co -Grantee or any Beneficiary to this Easement to exercise physical or managerial control over the day-to-day operations of the Protected Property, or any of Grantor's activities on the Protected Property, or otherwise to become an operator with respect to the Protected Property within the meaning of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended ("CERCLA"). 11 SUBSEQUENT TRANSFER OR EXTINGUISHMENT 11.1 Extinguishment. 11.1.1 If circumstances arise in the future that render the Purpose of this Easement impossible to accomplish, this Easement can only be terminated or extinguished, whether in whole or in part, by judicial proceedings in a court of competent jurisdiction and with the permission of the United States. 11.1.2 The amount of the proceeds to which Grantee, Co -Grantee, and any Beneficiary to this Easement shall be entitled, after the satisfaction of prior claims, from any sale, exchange, or involuntary conversion of all or any portion of the Protected Property subsequent to such termination or extinguishment, shall be determined, unless otherwise provided by Washington law at the time, in accordance with -27- FINAL 1)1?. 1/, 1/1612020 Section 11.3. Grantee shall use all such proceeds for the acquisition of property interests that are substantially equivalent to those conveyed by this Easement. Grantee shall consult with and receive the approval of Co -Grantee, NRCS, and RCO in the selection of any replacement property interests. Upon acquisition of such replacement property interests, Grantee shall convey to Co -Grantee, NRCS, and RCO the same or substantially equivalent rights as provided for in this Easement. 11.1.3 In granting this Easement, Grantor has considered the fact that any use of the Property that is prohibited by this Easement, or any other use as determined to be inconsistent with the Purpose of this Easement, may become economically more valuable than permitted uses. It is the intent of Grantor, Grantee, and Co - Grantee that such circumstances shall not justify the termination or extinguishment of this Easement. Grantor's inability to carry on any or all of the permitted uses, or the unprofitability of doing so, shall not impair the validity of this Easement or be considered grounds for its termination or extinguishment. 11.2 Condemnation. If the Easement is taken, in the whole or in the part, by the exercise of the power of eminent domain, Grantee, Co -Grantee, NRCS, and RCO shall be entitled to compensation in accordance with Section 11. 3, for the value of the Easement taken; and the Grantor shall be entitled to compensation in accordance with applicable law for the value of the underlying fee title and improvements taken. In the event that Section 11.3. violates applicable law, then the proceeds to Grantor, Grantee, Co - Grantee, NRCS, and RCO shall be divided in accordance with applicable law. In the event that Grantee is the recipient of the proceeds from any condemnation, then Grantee shall disburse to RCO and the United States their respective shares of the proceeds pursuant to Section 11.4 as soon as is practicable. 11.3 Valuation 11.3.1 This Easement constitutes a real property interest immediately vested in Grantee and Co -Grantee. For purposes of this Section, the Parties stipulate that this Easement has a fair market value determined by multiplying (a) the then fair market value of the Protected Property unencumbered by the Easement (minus any increase in value attributable to improvements on the Protected Property), at the time of termination or extinguishment, as determined by an appraisal that meets RCO and the United States requirements for appraisals and is approved by the United States of America, by (b) the ratio of the value of the Easement at the time of this grant to the value of the Protected Property, unencumbered by the Easement, at the time of this grant. 11.3.2 For purposes of this Section, the Parties agree that the ratio of the value of the Easement to the value of Grantor's property unencumbered by the Easement is evidenced by that certain real property appraisal prepared by Gregory Richards M. FINAL.;,,,,, 1, .1116/2020 with Richards & Associates, dated July 30, 2019, on file with Grantee. This ratio is 0.59 and shall remain constant. 11.4 Distribution of Proceeds. In the event of extinguishment of this Easement pursuant to Section 11. 1, condemnation of this Easement pursuant to Section 11.2, or damages received by Grantee in an amount equal to the fair market value of this Easement pursuant to Section 9.6 any proceeds attributable to the value of the Easement shall be distributed as follows: NRCS is entitled to 40% and RCO is entitled to 50% and Co - Grantee (or other source of acquisition funding for the Easement as applicable) is entitled to the remaining 10% of any such proceeds. 11.5 Subsequent Transfers. Grantor agrees to: (1) incorporate by express reference the terms of this Easement in any deed or other legal instrument by which it divests itself of any interest in all or a portion of the Protected Property; and (2) describe this Easement in and append it to, any executory contract for the transfer of any interest in the Protected Property. Grantor ftuther agrees to give written notice to the Grantee and Co -Grantee of the transfer of any interest at least thirty (30) days prior to the date of such transfer. Such notice to Grantee and Co -Grantee shall include the name, address, and telephone number of the prospective transferee or such transferee's representative. The failure of the Grantor to perform any act required by this Section 11 shall not impair the validity of this Easement or limit its enforceability in any way. 12 AMENDMENT 12.1 If circumstances arise under which an amendment to or modification of this Easement would be appropriate, the Parties may jointly amend this Easement provided that the Parties first obtain the written consent of each Beneficiary to this Easement. Any such amendment shall be consistent with the Purpose of this Easement, shall not affect the qualification of this Easement or the status of Grantee or Co -Grantee under any applicable laws, shall not shorten the duration of this Easement, shall not amend the area of the Protected Property covered by the Easement (unless it is expanded to cover additional land without removing any land included in the Protected Property) and shall be recorded in the official records of Kittitas County, Washington, and any other jurisdiction in which such recording is required. 13 ASSIGNMENT 13.1 Assignment. 13.1.1 Grantee Interest. Grantee's interest in this Easement is transferable with prior written notice to and consent of RCO and the United States, but Grantee may assign its rights and obligations under this Easement only to an organization that is a qualified holder at the time of transfer under RCW 64.04.130, as amended, and a qualified recipient of grant funds from the farm and forest account under -29- FINAL 1)l� I 1 1'111012020 RCW 79A.15.130. Grantee shall not assign this Easement without notice to and consent of Co -Grantee, RCO and the United States, which consent shall not be unreasonably withheld. As conditions of such transfer, Grantee shall require that assignee (a) continue to carry out the Purpose of this Easement and (b) comply with the terms of the RCO and the United States Grant Agreement, as described in Section 14. Grantee shall notify Grantor in writing, at Grantor's last known address, in advance of such assignment. The assignment shall not be valid without such notice; provided, however, that the failure of Grantee to give such notice shall not impair the validity of this Easement or limit its enforceability in any way. 13.1.2 Co -Grantee Interest. Co -Grantee's interest in this Easement is transferable, but Co -Grantee may assign its rights and obligations under this Easement only to a qualified organization with notice to and consent of Grantee, RCO and the United States, which consent shall not be unreasonably withheld. As conditions of such transfer, Co -Grantee shall require that assignee (a) continue to carry out the Purpose of this Easement and (b) comply with the terms of the RCO and the United States Grant Agreement, as described in Section 14. Co -Grantee shall notify Grantor in writing, at Grantor's last known address, in advance of such assignment. The assignment shall not be valid without such notice; provided, however, that the failure of Co -Grantee to give such notice shall not impair the validity of this Easement or limit its enforceability in any way. 13.2 Rights and Obligations Upon Transfer. A party's rights and obligations under this Easement terminate upon transfer of the party's interest in the Protected Property or this Easement, as the case may be, except that liability for acts or omissions occurring prior to transfer shall survive transfer. 13.3 Succession. If at any time it becomes impossible for Grantee to ensure compliance with the covenants contained herein and Grantee has not named a successor organization, or the Grantee shall cease to exist, then Grantee's rights and duties hereunder shall become vested and fall upon RCO, who may then assign, with the United States' consent (which shall not be unreasonably withheld), Grantee's rights and duties hereunder to an organization with a similar mission to that of Grantee. 14 RCO THIRD PARTY RIGHT OF ENFORCEMENT 14.1 RCO is hereby granted third party right of enforcement of this Easement. As such, RCO may exercise all of the rights and remedies provided to Grantee and Co -Grantee herein,and is entitled to all of the indemnifications provided to Grantee and Co - Grantee in this Easement. RCO, Grantee, and Co -Grantee each have independent authority to enforce the terms of this Easement; provided, however, that RCO and Co -Grantee expect that Grantee shall have primary responsibility for monitoring and enforcement of the Easement. In the event that RCO, Grantee, and/or Co -Grantee do -30- FINAL 1)H� 117 1/1612020 not agree as to whether the Grantor is complying with the terms of the easement, RCO or Grantee or Co -Grantee may jointly or individually proceed with enforcement actions without the consent of any other. If RCO elects to enforce the terms of this Easement, it shall first follow the dispute resolution process and remedies described in Sections 8 and 9 above; provided, however, that RCO shall not be obligated to repeat any non judicial dispute resolution steps already taken by Grantee or Co - Grantee. 14.2 This third party right of enforcement does not extend to any other third party and will automatically transfer to another State agency charged with maintaining, preserving and/or restoring agricultural lands in the event RCO is dissolved or reorganized. 14.3 In the event that Grantee transfers or assigns this Easement without the consent of RCO, which consent shall not be unreasonably withheld, RCO may require that Grantee pay to RCO, at RCO's election, the higher of (i) an amount equal to the fair market value of this Easement, which shall be determined as provided in Section 11.3 and distributed as provided in Section 11.4; or (ii) an amount equal to the Total Project Cost as specified in the RCO Grant Agreement with interest due and payable from the date of breach at the rate provided for in RCW 43.17.240, as may be amended from time to time. 14.4 In the event that the Protected Property is used by Grantor in a manner that is not consistent with the Purpose of this Easement or the terms of the RCO Grant Agreement, RCO shall have the right, in addition to any other remedies described in this Easement, to require that Grantor pay to RCO, at RCO's election, the higher of (i) an amount equal to the fair market value of this Easement, which shall be determined as provided in Section 11.3 and distributed as provided in Section 11.4; or (ii) an amount equal to the Total Project Cost as specified in the RCO Grant Agreement with interest due and payable from the date of breach at the rate provided for in RCW 43.17.240, as may be amended from time to time. Any costs, fees or damages paid by Grantor for enforcement of this Easement or restoration of the Conservation Values pursuant to Section 9 shall be deducted from this amount. RCO agrees that it will follow the dispute resolution process and remedies described in Sections 8 and 9 before exercising this right, unless legally compelled to do otherwise. Any amounts due and owing RCO under this paragraph shall be due and owing within 120 days of receiving a written demand for repayment by RCO. Upon Grantor's repayment of such amount to RCO, Grantee and RCO agree to prepare and record a deed amendment to release Grantor from any further obligations to RCO or Grantee under this Easement. 15 JOINT ENFORCEMENT 15.1 Before Grantee , Co -Grantee, or any Beneficiary to this Easement exercises its rights to undertake mediation, arbitration or legal action as provided for in Sections 8 and 9, -31- FINAL DRAFT 1116/2020 the party contemplating such action agrees to confer with the other parties holding enforcement rights under this Easement as to whether they will join the mediation, arbitration or legal action and share costs and expenses related to such action; provided, however, that this agreement to confer shall not be construed as a limitation on the ability of Grantee, Co -Grantee, or any Beneficiary to this Easement to exercise its enforcement and other rights under this Easement. If Grantee, Co - Grantee, RCO, and/or the United States decide(s) to join in the action and share costs and expenses related to the action, the parties joining in the action and sharing costs and expenses related to the action shall apply any recovery to reimburse such parties for their costs and expenses; provided, however, that any amount received based on loss of value to the easement, or resulting from condemnation and/or extinguishment of the Easement, shall be shared equally by Grantee, Co -Grantee, RCO and the United States only after reimbursing such parties for their costs and expenses. 15.2 If Grantee, Co -Grantee, or any Beneficiary to this Easement chooses not to undertake mediation, arbitration or legal action as provided for in Sections 8 and 9, and/or share costs and expenses related to such action, such party shall not be entitled to any recovery for enforcement costs; provided, however, that any amount received based on loss of value to the easement, or resulting from condemnation and/or extinguishment of the Easement, shall be distributed in accordance with Section 11.4 only after first reimbursing any party for its costs and expenses that are not otherwise separately paid as part of any arbitration award or judgment. 16 RECORDATION Grantee shall record this instrument in a timely fashion in the official records of Kittitas County, Washington, and in any other appropriate jurisdictions, and may re-record it at any time as may be required to preserve its rights in this Easement. 17 NO MERGER In the event that Grantee or Co -Grantee acquires all or a portion of the fee title to the Protected Property, it is the intent of the Parties that no merger of title shall take place that would merge the restrictions of this Easement with fee title to the Protected Property and thereby eliminate them, and that the restrictions on the use of the Protected Property, as embodied in the Easement, shall, in the event that all or a portion of title become vested in Grantee or Co -Grantee, become and remain permanent and perpetual restrictions on the use of the Protected Property. Grantee and Co -Grantee covenant to do what is required to prevent merger of title, including, if necessary, assignment of the Easement to an appropriate third party pursuant to Section 13.1. 18 GENERAL PROVISIONS -32- FINAL DRAFT 1/1612 02 0 18.1 Effective Date. The Effective Date of this Easement shall be the date on which the Grantor executed this Easement. 18.2 Governing Law and Venue. The laws of the State of Washington and applicable federal law shall govern the interpretation and performance of this Easement. By executing this Easement, Grantor acknowledges the jurisdiction of the courts of the State of Washington in this matter. In the event of a lawsuit involving this Easement, venue shall be proper only in Kittitas County. 18.3 Liberal Construction. Any general rule of construction to the contrary notwithstanding, this Easement shall be liberally construed in favor of the grant to effect the Purpose of this Easement. If any provision in this instrument is found to be ambiguous, an interpretation consistent with the Purpose of this Easement that would render the provision valid shall be favored over any interpretation that would render it invalid. 18.4 Severability. 18.4.1 Except as provided in Section 18.4.2 below, if any provision of this Easement, or the application thereof to any person or circumstance, is found to be invalid or unenforceable by any court of competent jurisdiction or is superseded by state or federal legislation, rules, regulations or decision, the remainder of the provisions of this Easement, or the application of such provision to persons or circumstances other than those as to which it is found to be invalid or unenforceable, as the case may be, shall not be affected thereby. 18.4.2 If any material provision of this Easement, or the application thereof to any person or circumstance, is found to be invalid or unenforceable by any court of competent jurisdiction or is superseded by state or federal legislation, rules, regulations or decision, so that the intent of these provisions is frustrated, the parties agree to immediately negotiate a replacement provision to fulfill the intent of the superseded provisions consistent with the Purpose of this Easement and applicable law. 18.5 Entire Agreement. This instrument sets forth the entire agreement of the Parties with respect to the Easement and supersedes all prior discussions, negotiations, understandings, or agreements relating to the Easement, all of which are merged herein. No alteration or variation of this instrument shall be valid or binding unless contained in an amendment that complies with Section 12. 18.6 No Forfeiture. Nothing contained herein will result in a forfeiture or reversion of Grantor's title in any respect. -33- FINAL DRAFT 1/16/2020 18.7 "Grantor" - "Grantee" — "Co -Grantee". The terms "Grantor," "Grantee," and "Co -Grantee," wherever used in this instrument, and any pronouns used in the place thereof, shall be held to mean and include, respectively the above-named Grantor and its successors and assigns, the above-named Grantee and its successors and assigns, and the above-named Co -Grantee and its successors and assigns. The term "Grantor" shall also include any party taking ownership of the Protected Property, or any portion thereof, subsequent to the foreclosure of any mortgage or deed of trust. 18.8 Successors. The covenants, terms, conditions, and restrictions of this Easement shall be binding upon, and inure to the benefit of, the Parties and their respective successors and assigns, and to any party taking ownership of the Protected Property, or any portion thereof, subsequent to the foreclosure of any mortgage or deed of trust, and shall continue as a servitude in perpetuity with the Protected Property. 18.9 Captions. The captions in this instrument have been inserted solely for convenience and ease of reference and are not a part of this instrument and shall have no effect upon construction or interpretation. 18.10Counterparts. The Parties may execute this instrument in two or more counterparts, which shall, in the aggregate, be signed by both Parties; each counterpart shall be deemed an original instrument as against any party who has signed it. In the event of any disparity between the counterparts produced, the recorded counterpart shall be controlling. 18.11Authority. The individuals signing below, if signing on behalf of any entity, represent and warrant that they have the requisite authority to bind the entity on whose behalf they are signing. 18.12Recitals. The Parties agree that the terms and recitals set forth in Section 1 (among other terms of this Easement) are material to this Easement, and that each Party has relied on the material nature of such terms and recitals in entering into this Easement. Each term and recital set forth in Section 1 is fully incorporated into this Easement. 19 This Grand Deed of Agricultural Conservation Easement is acquired with funds provided, in part, under the Agricultural Conservation Easement Program (ACEP). The EXHIBIT F is attached hereto and incorporated herein by reference and will run with the land in perpetuity. As required by 16 U.S.C. Section 3865 et seq. and 7 CFR Part 1468, and as a condition of receiving ACEP funds, all present and future use of the Protected Property identified in EXHIBIT A (legal description or survey) is and will remain subject to the terms and conditions described in EXHIBIT Fentitled Minimum Deed Terms For The Protection Of Agricultural Use that is appended to and made a part of this easement deed. 20 SCHEDULE OF EXHIBITS -34- VI V il. I WAFT 1/16/20X) Exhibit A Legal Description of Property Subject to Easement Exhibit B Site Map of Property Subject to Easement Exhibit C Building Envelopes Exhibit D Water Rights Exhibit E Permitted Exceptions Exhibit F Minimum Deed Terms for the Protection of Agricultural Use TO HAVE AND TO HOLD unto Grantee, Co -Grantee, their respective successors, and assigns forever. REMAINDER OF PAGE IS INTENTIONALLY BLANK; SIGNATURE PAGES FOLLOW -35- FINAL DRAFT 1/16/2020 IN WITNESS WHEREOF, the undersigned Grantor has executed this instrument this day of , 2020. Grantor: Brent Minor and Mary Minor, husband and wife Brent Minor Mary Minor STATE OF WASHINGTON ) ) ss. COUNTY OF KITTITAS ) On this day of 2020, before me, the undersigned, a Notary Public in and for the State of Washington, duly commissioned and sworn, personally appeared Brett Minor and Mary Minor who executed the within and foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said corporation for the uses and purposes therein mentioned, and on oath stated that he/she/they (is/are) authorized to execute the said instrument. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written. Dated: (Use this space for notarial stamp/seal) Printed Name Notary Public in and for the State of Washington Residing at My commission expires -36- FINAL DRAFT 1116/2020 Kittitas County does hereby accept the above Grant Deed of Agricultural Conservation Easement. Dated: Co -Grantee: By Brett Wachsmith, Chairman Laura Osiadacz, Vice- Chairman Cory Wright Its: County Commissioners STATE OF WASHINGTON ) ) ss. COUNTY OF KITTITAS ) On this day of , 2020 before me personally appeared to me Brett Wachsmith, Laura Osiadacz and Cory Wright, known to be the duly elected, qualified and acting County Commissioners of Kittitas County, Washington, who executed the within and foregoing instrument and acknowledged said instrument to be the free and voluntary act and deed of said County, for the uses and purposes therein mentioned, and each on oath stated that they were authorized to execute said instrument by resolution of the Board of County Commissioners of said county, and that the seal affixed is the official seal of said County. Given under my hand and official seal the day and year last above written. Dated: (Use this space for notarial stamp/seal) Printed Name Notary Public in and for the State of Washington Residing at My commission expires -37- FINAL DRAFT I/16/2020 Forterra NW does hereby accept the above Grant Deed of Agricultural Conservation Easement. Dated: Co -Grantee: By Its STATE OF WASHINGTON ) ) ss. COUNTY OF KING ) On this day of 2020, before me, the undersigned, a Notary Public in and for the State of Washington, duly commissioned and sworn, personally appeared Michelle Connor to me known to be the President & CEO of Forterra NW, the Washington nonprofit corporation, that executed the within and foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said corporation for the uses and purposes therein mentioned, and on oath stated that he/she is authorized to execute the said instrument. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written. DATED: (Use this space for notarial stamp/seal) Printed Name Notary Public in and for the State of Washington Residing at My commission expires No FINAL DRAFT 1/16/2020 THE STATE OF WASHINGTON, BY AND THROUGH THE WASHINGTON STATE RECREATION AND CONSERVATION OFFFICE, Third Party Beneficiary, does hereby accept the above Grant Deed of Agricultural Conservation Easement. Dated: Its Approved as to Form: Assistant Attorney General Date STATE OF WASHINGTON ) ss. COUNTY OF ) On this day of 2020, before me, the undersigned, a Notary Public in and for the State of Washington, duly commissioned and sworn, personally appeared to me known to be the of , a , that executed the within and foregoing instrument, and acknowledged the said instrument to be the free and voluntary act and deed of said corporation for the uses and purposes therein mentioned, and on oath stated that he/she is authorized to execute the said instrument. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal the day and year first above written. Dated: (Use this space for notarial stamp/seal) Printed Name Notary Public in and for the State of Washington Residing at My commission expires -39- FINAL W, I 11/16/2020 ACCEPTANCE OF PROPERTY INTEREST BY THE NATURAL RESOURCES CONSERVATION SERVICE ON BEHALF OF THE UNITED STATES OF AMERICA The Natural Resources Conservation Service, an agency of the United States Government, hereby accepts and approves the foregoing Conservation Easement Deed, and the rights conveyed therein, on behalf of the United States of America. This property is the Hairpin Ranch property, in Kittitas County WA, under agreement #N5319ALE00100132 with the Forterra NW. Authorized Signatory for the NRCS STATE OF ! ) ss. COUNTY OF ) On this day of 2020, before me, the undersigned, a Notary Public in and for the State of _. personally appeared known or proved to me to be the person whose signature appears above, and who being duly sworn by me, did say that she/he is the State Conservationist of the Natural Resources Conservation Service, United States Department of Agriculture, is authorized to sign on behalf of the United States of America, and acknowledged and accepted the rights conveyed by the within Conservation Easement Deed. In witness whereof, I have hereunto set my hand and official seal the day and year first above written. Dated: Printed Name Notary Public in and for the State of Residing at My commission expires (Use this space for notarial stamp/seal) EXHIBIT A Legal Description TRACT 1: Parcel 5 of that certain Survey as recorded May 9, 2007, in Book 34 of Surveys, pages 42 and 43, under Auditor's File No. 200705090017, records of Kittitas County, Washington; being a portion of the Southeast Quarter of Section 8, Township 18 North, Range 19 East, W.M, in the County of Kittitas, State of Washington. TRACT 2: Parcels A, B, C and D of that certain Survey as recorded July 5, 2007, in Book 34 of Surveys, pages 78 and 79, under Auditor's File No. 200707050010, records of Kittitas County, Washington; being a portion of the Southwest Quarter of Section 9, Township 18 North, Range 19 East, W.M., in the County of Kittitas, State of Washington. TRACT 3: Parcels S1, S2, S3, S4 and S5 of that certain Survey as recorded July 10, 2007, in Book 34 of Surveys, pages 82 and 83, under Auditor's File No. 200707100002, records of Kittitas County, Washington; being a portion of the Southwest Quarter of Section 9, Township 18 North, Range 19 East, W.M., in the County of Kittitas, State of Washington. TRACT 4: Parcels 1W, 3W, 4W, 5W, 6W, 7W and 8W of that certain Survey as recorded July 11, 2007, in Book 34 of Surveys, pages 89 and 90, under Auditor's File No. 200707110035, records of Kittitas County, Washington, being a portion of the West Half of Section 9, Township 18 North, Range 19 East, W.M., in the County of Kittitas, State of Washington. TRACT 5: Parcels 1E,2E, 3E, 4E, 5E, 6E, and 7E of that certain Survey as recorded July 12, 2007, in Book 34 of Surveys, pages 93 and 94, under Auditor's File No. 200707120013, records of Kittitas County, Washington; being a portion of the West Half of Section 9, Township 18 North, Range 19 East, in the County of Kittitas, State of Washington. TRACT 6: Parcels 1, 2, 3, 4, 5, 6, 7, and 8 of that certain Survey as recorded July 13, 2007, in Book 34 of Surveys, pages 95 and 96, under Auditor's File No. 200707130037, records of Kittitas County, Washington; being a portion of the Southwest Quarter of Section 9, Township 18 North, Range 19 East, W.M., in the County of Kittitas, State of Washington. TRACT 7: Parcels A, B, C, D and E of that certain Survey as recorded July 25, 2007, in Book 34 of Surveys, pages 106 and 107, under Auditor's File No. 200707250023, records of Kittitas County, Exhibit A FINAL DRAFT 1/16/2020 Washington; being a portion of the West Half of Section 9, Township 18 North, Range 19 East, W.M., in the County of Kittitas, State of Washington. Parcel Number: Abbreviated Legal: Being a ptn of Sec 5, Twp 18N, Rge 19E, W.M. Purported Address: 8001 Naneum Road Ellensburg, Washington 98926 Exhibit A EXHIBIT B Property Subject to Conservation Easement 953195 194234 931036 953203 953202 953204 953196 953205 14796 953197 — 953218 953219 953198 953199 953221 953220 953201 853200 1 804p 953222 1 953223 953189 +953224 953208 953209 1953210 953225 I`953190953192 953212 953213 953214 953191 Property Subject to Conservation Easement L i i Parcel Potentially Separately Conveyable F-71 Other Parcels Property and tax parcel boundaries courtesy of Kittitas County GIS data published January 2019. Exhibit B N Map produced by FORTERRA August26, 2019 Feet 0 500 1,000 S FINAL DRAFT 1/16/2020 EXHIBIT C Building Envelopes Building Envelope Boundary Public Road Property Subject to Conservation Easement rN-o Stream, Canal or Ditch Subject Tax Boundary Lake or Pond Property and tax parcel boundaries courtesy of Kft tas County GIS data published January 2019. Exhibit C r Map producer/ by FORTERRA N December 16, 2019 A Feet 0 500 1,000 g FINAL DRAFT 1/1612020 EXHIBIT D Dedicated Water Rights Kittitas Reclamation District (KRD): 5 -acre feet per year over 198 acres for a total of 990 acre feet per year for irrigation. All of the KRD water for irrigation shall run with the Protected Property under the Easement. June 30, 1882 Certificate: Naneum Creek irrigation of 115 acres and stock water claim 00484 (A) 004498 April 1 through October 15th 2.3 cubic feet per second in May and June. 1.20 cubic feet per second in April and July 1 through October 15th 575 -acre feet per year for irrigation and 4 -acre feet per year for stock watering Only the first 372 acre feet per year for irrigation under this Certificate shall run with the Protected Property under the Easement. Exhibit D EXHIBIT E Permitted Exceptions Exhibit E FINAL DRAFT 1/16/2020 EXHIBIT F MINIMUM TERMS FOR AGRICULTURAL LAND EASEMENTS The Agricultural Conservation Easement Program, 16 U.S.C. Section 3865 et seq., facilitated and provided funding for the purchase of an Agricultural Land Easement ("ALE"), as described in this Grant Deed of Agricultural Conservation Easement ("ALE Deed"), on real property described in Exhibit A, hereafter referred to as "the Protected Property." As used herein, references to the "ALE Deed" include this Exhibit, except where explicitly stated otherwise. Brett Minor and Mary Minor (collectively "Grantor"), Kittitas County and Forterra NW (collectively "Grantee"), the State of Washington, by and through the Washington State Recreation and Conservation Office (RCO), and the United States of America (the "United States"), acting by and through the United States Department of Agriculture Natural Resources Conservation Service (NRCS) on behalf of the Commodity Credit Corporation (jointly referred to as the "Parties") acknowledge that the ALE is acquired by the Grantee for the purpose of: protecting the agricultural use and future viability, and related conservation values, by limiting nonagricultural uses that negatively affect the agricultural uses and conservation values of the Protected Property (the "Purpose of the ALE'). Baseline conditions of the Protected Property are set forth in a Baseline Documentation Report, a copy of which is maintained in the files of the Grantee. In order to ensure compliance with the Agricultural Conservation Easement Program, 16 U.S.C. Section 3865 et seq. and 7 CFR Part 1468, the following rule of interpretation will govern any and all inconsistencies between this Exhibit and those portions of the ALE Deed other than this Exhibit. Notwithstanding any other provision of the ALE Deed, the Parties agree that all present and future use of the Protected Property is and will remain subject to all of the terms and conditions identified in the following Sections I and II. If the terms and conditions in Sections I and II are inconsistent with terms and conditions in other portions of the ALE Deed, Sections I and II will control; provided, however, that if other portions of the ALE Deed have terms and conditions that are consistent with, but more restrictive to the rights of the Grantor than the terms and conditions in Section I, Paragraphs 1, 2, and 4, those more restrictive terms and conditions will control. If other portions of the ALE Deed are more restrictive to the rights of the Grantor than Section I Paragraph 3 and 5 and Section II then Section I Paragraph 3 and 5 and Section II will control. SECTION I - MINIMUM CONSERVATION DEED RESTRICTIONS Even if the Protected Property consists of more than one parcel for real estate tax or any other purpose or if it was acquired previously as separate parcels, it will be considered one parcel for purposes of this ALE, and the restrictions and covenants of this ALE Deed will apply to the Protected Property as a whole. Exhibit F FINAL DRAFT 1/1612020 The terms and conditions of the ALE Deed run with the land and are binding upon the Grantor and Grantee and their respective heirs, successors, agents, assigns, lessees, and any other person claiming under them, any and all of whom must comply with all terms and conditions of this ALE Deed, including the following: 1. Limitation on Impervious Surfaces. Impervious surfaces will not exceed 2% of the Protected Property, excluding NRCS-approved conservation practices. Impervious surfaces are defined as material that does not allow water to percolate into the soil on the Protected Property, including, but not limited to, buildings with or without flooring, paved areas, and any other surfaces that are covered by asphalt, concrete, or roofs. This limitation does not include public roads or other roads owned and controlled by parties with rights superior to those rights conveyed to Grantee by this ALE Deed. 2. Limitations on Nonagricultural Uses. Any activities inconsistent with the Purpose of the ALE are prohibited. The following activities are inconsistent with the Purpose of the ALE and are specifically prohibited, subject to the qualifications stated below: (A) Subdivision — The Protected Property shall not be further divided or subdivided, and shall not be separately conveyed as more than three (3) separate parcels (three (3) divisions allowed), the boundaries and the allocation of the impervious surface limitation for which have been identified in Exhibit B, which is appended to and made a part of this ALE Deed. To protect the Purpose of the ALE, the boundaries of such divisions have been preapproved in writing by Grantee and the Chief of NRCS or the Chief's authorized designee (Chief of NRCS). Deviations from the identified boundaries will not be allowed. Grantor must give Grantee and the Chief of NRCS written notice prior to separately conveying a parcel of the Protected Property. (B) Industrial or Commercial Uses — Industrial or commercial activities on the Protected Property are prohibited except for the following: (i) Agricultural production and related uses in accordance with the terms and conditions of this ALE Deed; (ii) The sale of excess power generated in the operation of renewable energy structures and associated equipment or other energy structures that Grantee approves in writing as being consistent with the Purpose of the ALE and in accordance with the terms and conditions of this ALE Deed; (iii) Temporary or seasonal outdoor activities or events that do not harm the Purpose of the ALE; and (iv) Commercial enterprises related to agriculture or forestry. (C) Construction on the Protected Property — All new structures and improvements must be located within the Building Envelope(s), containing approximately twenty (20) acres Exhibit F !.V F 1. DRAFT 1/16/2020 and described or shown in Exhibit C, which is appended to and made a part of the ALE deed. Agricultural structures and utilities to serve approved buildings or structures, including on- farm energy structures allowed under Section I, Paragraph 2(B)(ii) and Section I, Paragraph 3(C) that neither individually nor collectively have an adverse impact on the Purpose of the ALE, may be built outside of the Building Envelopes with prior written approval of the Grantee. New roads may be constructed if they are approved in advance by Grantee, within impervious surface limits, and are necessary to carry out the agricultural operations or other allowed uses on the Protected Property. Maintenance of existing roads documented on the Baseline Documentation Report is allowed; however, existing roads may not be widened or improved unless widening and improving is within impervious surface limits, approved in advance by Grantee, and necessary to carry out the agricultural operations or other allowed uses on the Protected Property. Fences may be maintained and replaced, and new fences installed if they are necessary for agricultural operations or other allowed uses on the Protected Property or to mark boundaries of the Protected Property. Maintenance, replacement, and installation of fences must be conducted in a manner consistent with the Purpose of the ALE. (D) Granting of Easements for Utilities and Roads — The granting or modification of easements for utilities and roads is prohibited when the utility or road will adversely impact the Purpose of the ALE as determined by the Grantee in consultation with the Chief of NRCS. (E) Surface Alteration — Grading, blasting, filling, sod farming, earth removal, or any other activity that will disturb the soil surface or materially alter the topography, surface or subsurface water systems, or wetlands of the Protected Property is prohibited, except for the following: (i) Dam construction pursuant to a plan approved by the Grantee to create ponds for agricultural use, fire protection, or wildlife enhancement, including enhancement through wetland restoration, enhancement, or creation; (ii) Erosion and sediment control pursuant to a plan approved by the Grantee; (iii) Soil disturbance activities required in the construction of approved buildings, structures, roads, and utilities provided that the required alteration has been approved in writing by Grantee as being consistent with the Purpose of the ALE; and Exhibit F FINAL DRAFT 1/16/2020 (iv) Agricultural activities and related conservation activities conducted in accordance with the terms and conditions of this ALE Deed. (F) Surface and Subsurface Mineral Exploration and Extraction — Mining or extraction of soil, sand, gravel, oil, natural gas, fuel, coal, or any other mineral substance owned by Grantor as of the date of this ALE Deed or later acquired by Grantor, using any surface mining, subsurface mining, or dredging method, from the Protected Property is prohibited except as otherwise provided in this Paragraph F. If a third party owns or leases the oil, natural gas, or any other mineral rights associated with the Protected Property at the time this ALE Deed is executed, and their interests have not been subordinated to this ALE, the Grantor must require, to the greatest extent possible, that any oil, natural gas, and mineral exploration and extraction conducted by such third party is conducted in accordance with this Paragraph (F). Any mineral leases or other conveyances of minerals entered into or renewed after the date of this ALE Deed are subordinate to the terms of this ALE Deed and must incorporate by reference this ALE Deed. Limited mining activities for materials (e.g., sand, gravel, or shale) used to facilitate the agricultural operations on the Protected Property are allowed where the extraction of such materials is limited, localized, and occurs only within a single one -half -area of the Protected Property. 3. Preserving Agricultural Uses. The provisions of this ALE Deed and associated exhibits will not be interpreted to restrict the types of agricultural operations that can function on the Protected Property, so long as the agricultural operations are consistent with the long-term viability of the Protected Property and the Purpose of the ALE. No uses will be allowed that violate Federal laws, including Federal drug laws, or that decrease the ALE's protection for the Purpose of the ALE. Allowed uses of the Protected Property include the specific uses allowed in Section I, Paragraph (2)(B)(i)-(v) and the following activities, subject to the qualifications stated below: (A) Agricultural Production — The production, processing, and marketing of livestock and agricultural products compatible with the Purpose of the ALE are allowed provided these activities are conducted in a manner consistent with the terms of the ALE deed. (B) Forest Management and Timber Harvest — Forest management and timber harvesting are allowed, provided these activities are carried out, to the extent practicable, in accordance with current, generally accepted best management practices for the sites, soils, and terrain of the Protected Property. (C) On -Farm Energy Production — Renewable energy production is allowed for the purpose of generating energy for the agricultural and residential needs of the Protected Property. Renewable energy sources must be built and maintained within impervious surface limits and consistent with the Purpose of the ALE. SECTION II - PROTECTION OF THE UNITED STATES'S INTERESTS Exhibit F 1. 1)R?1T"7'1/16/2020 1. United States Right of Enforcement. Pursuant to 16 U.S.C. Section 3865 et seq., the United States is granted the right of enforcement that it may exercise only if the terms of the ALE Deed are not enforced by the Grantee. The Secretary of the United States Department of Agriculture (the "Secretary") or the Secretary's assigns, on behalf of the United States, may exercise this right of enforcement under any authority available under State or Federal law if the Grantee, or its successors or assigns, fails to enforce any of the terms of this ALE Deed, as determined in the sole discretion of the Secretary. In the event the United States exercises this right of enforcement, it is entitled to recover any and all administrative and legal costs associated with any enforcement or remedial action related to the enforcement of this ALE Deed from the Grantor, including, but not limited to, attorney's fees and expenses related to Grantor's violations. In the event the United States exercises this right of enforcement, it is entitled to recover any and all administrative and legal costs associated with any enforcement of this ALE Deed from the Grantee, including, but not limited to, attorney's fees and expenses related to Grantee's violations or failure to enforce the ALE Deed against the Grantor, up to the amount of the United States's contribution to the purchase of the ALE. The Grantee will annually monitor compliance and provide the United States with an annual monitoring report that documents that the Grantee and Grantor are in compliance with the ALE Deed. If the annual monitoring report is insufficient or is not provided annually, or if the United States has a reasonable and articulable belief of an unaddressed violation, as determined by the Secretary, the United States may exercise its right of inspection. For purposes of inspection and enforcement of the ALE Deed and the United States ALE Agreement with the Grantee, the United States will have reasonable access to the Protected Property. Prior to its inspection of the Protected Property, the United States shall provide advance notice to Grantee and Grantor and provide Grantee and Grantor a reasonable opportunity to participate in the inspection. In the event of an emergency, the United States may enter the Protected Property to prevent, terminate, or mitigate a potential or unaddressed violation of the ALE Deed and will give notice to Grantee and Grantor at the earliest practicable time. 2. General Disclaimer and Grantor Warranty. The United States, its employees, agents, and assigns disclaim and will not be held responsible for Grantee's or Grantor's negligent acts or omissions or Grantee's or Grantor's breach of any representation, warranty, covenant, or agreements contained in this ALE Deed, or violations of any Federal, State, or local laws, including all Environmental Laws (defined below) including, without limitation, those that give rise to liabilities, claims, demands, losses, expenses, damages, fines, fees, penalties, suits, proceedings, actions, costs of actions, or sanctions asserted by or on behalf of any person or governmental authority, and other liabilities (whether legal or equitable in nature and including, without limitation, court costs, and reasonable attorneys' fees and attorneys' fees on appeal) to which the United States may be subject or incur relating to the Protected Property. Grantor must indemnify and hold harmless the United States, its employees, agents, and assigns for any and all liabilities, claims, demands, losses, expenses, damages, fines, fees, penalties, suits, proceedings, actions and costs of actions, sanctions asserted by or on behalf of any person or Exhibit F FINAL 1)R IFI 1/16/2020 governmental authority, and other liabilities (whether legal or equitable in nature and including, without limitation, court costs, and reasonable attorneys' fees and attorneys' fees on appeal) to which United States may be subject or incur relating to the Protected Property, which may arise from, but are not limited to, Grantor's negligent acts, omissions, or breach of any representation, warranty, covenant, agreements contained in this ALE Deed or violations of any Federal, State, or local laws, including all Environmental Laws (defined below). 3. Environmental Warranty. As used herein, "Environmental Law" or `Environmental Laws" means any and all Federal, State, local or municipal laws, rules, orders, regulations, statutes, ordinances, codes, guidelines, policies, or requirements of any governmental authority regulating or imposing standards of liability or standards of conduct (including common law) concerning air, water, solid waste, hazardous materials, worker and community right -to -know, hazard communication, noise, radioactive material, resource protection, subdivision, inland wetlands and watercourses, health protection, and similar environmental health, safety, building, and land use as may now or at any time hereafter be in effect. As used herein, "Hazardous Materials" means any petroleum, petroleum products, fuel oil, waste oils, explosives, reactive materials, ignitable materials, corrosive materials, hazardous chemicals, hazardous wastes, hazardous substances, extremely hazardous substances, toxic substances, toxic chemicals, radioactive materials, infectious materials, and any other element, compound, mixture, solution, or substance that may pose a present or potential hazard to human health or the environment. Grantor warrants that it is in compliance with, and will remain in compliance with, all applicable Environmental Laws. Grantor warrants that there are no notices by any governmental authority of any violation or alleged violation of, noncompliance or alleged noncompliance with, or any liability under, any Environmental Law relating to the operations or conditions of the Protected Property. Grantor further warrants that it has no actual knowledge of an undisclosed release or threatened release of Hazardous Materials, as such substances and wastes are defined by applicable Federal and State law. Furthermore, Grantor warrants the information disclosed to Grantee and United States regarding any past violations or noncompliance with Environmental Laws and associated remedial actions, or any past releases of Hazardous Materials and any associated remedial actions is complete and accurate. Moreover, Grantor hereby promises to hold harmless and indemnify Grantee and the United States against all litigation, claims, demands, penalties and damages, including reasonable attorneys' fees, arising from or connected with the release or threatened release of any hazardous materials on, at, beneath or from the Protected Property, or arising from or connected with a violation of any Environmental Laws by Grantor or any other prior owner of the Protected Property. Grantor's indemnification obligation will not be affected by any authorizations provided by Grantee or the United States to Grantor with respect to the Protected Property or any restoration activities carried Exhibit F FINAL 1) i i / 1/1612020 out by Grantee on the Protected Property; provided, however, that Grantee will be responsible for any Hazardous Materials contributed after this date to the Protected Property by Grantee. - 4. Extinguishment, Termination, and Condemnation. The interests and rights under this ALE Deed may only be extinguished or terminated with written approval of the Grantee and the United States. Due to the Federal interest in this ALE, any proposed extinguishment, termination, or condemnation action that may affect the United States's interest in the Protected Property must be reviewed and approved by the United States. With respect to a proposed extinguishment, termination, or condemnation action, the Grantee and the United States stipulate that the fair market value of the ALE is 59.33 percent, hereinafter the "Proportionate Share," of the fair market value of the land unencumbered by this ALE. The Proportionate Share will remain constant over time. If this ALE is extinguished, terminated, or condemned, in whole or in part, then the Grantor must reimburse Grantee and the United States an amount equal to the Proportionate Share of the fair market value of the land unencumbered by this ALE. The fair market value will be determined at the time all or a part of this ALE is terminated, extinguished, or condemned by an appraisal that meets the Uniform Standards of Professional Appraisal Practice (USPAP) or Uniform Acquisition Standards or Federal Land Acquisition (UASFLA). The appraisal must be completed by a certified general appraiser and be approved by the Grantee and the United States. The allocation of the Proportionate Share between the Grantee and the United States will be as follows: (a) to the Grantee or its designee, percent of the Proportionate Share; and (b) to the United States percent of the Proportionate Share. Until such time as the Grantee and the United States receive the Proportionate Share from the Grantor or the -Grantor's successor or assign, the Grantee and the United States each have a lien against the Protected Property for the amount of the Proportionate Share due each of them. If proceeds from termination, extinguishment, or condemnation are paid directly to Grantee, the Grantee must reimburse the United States for the amount of the Proportionate Share due to the United States. 5. Amendment. This ALE Deed may be amended only if, in the sole and exclusive judgment of the Grantee and United States, by and through the Chief of NRCS, such amendment is consistent with the Purpose of the ALE and complies with all applicable laws and regulations. The Grantee must provide timely written notice to the Chief of NRCS of any proposed amendments. Prior to the signing and recordation of the amended ALE Deed, such amendments must be mutually agreed upon by the Grantee, Grantor, and United States, by and through the Chief of NRCS. Any purported amendment that is recorded without the prior approval of the United States is null and void. Exhibit F MINIMUM TERMS FOR AGRICULTURAL LAND EASEMENTS EXHIBIT A Legal Description TRACT 1: Parcel 5 of that certain Survey as recorded May 9, 2007, in Book 34 of Surveys, pages 42 and 43, under Auditor's File No. 200705090017, records of Kittitas County, Washington; being a portion of the Southeast Quarter of Section 8, Township 18 North, Range 19 East, W.M, in the County of Kittitas, State of Washington. TRACT 2: Parcels A, B, C and D of that certain Survey as recorded July 5, 2007, in Book 34 of Surveys, pages 78 and 79, under Auditor's File No. 200707050010, records of Kittitas County, Washington; being a portion of the Southwest Quarter of Section 9, Township 18 North, Range 19 East, W.M., in the County of Kittitas, State of Washington. TRACT 3: Parcels S1, S2, S3, S4 and S5 of that certain Survey as recorded July 10, 2007, in Book 34 of Surveys, pages 82 and 83, under Auditor's File No. 200707100002, records of Kittitas County, Washington; being a portion of the Southwest Quarter of Section 9, Township 18 North, Range 19 East, W.M., in the County of Kittitas, State of Washington. TRACT 4: Parcels 1W, 3W, 4W, 5W, 6W, 7W and 8W of that certain Survey as recorded July 11, 2007, in Book 34 of Surveys, pages 89 and 90, under Auditor's File No. 200707110035, records of Kittitas County, Washington, being a portion of the West Half of Section 9, Township 18 North, Range 19 East, W.M., in the County of Kittitas, State of Washington. TRACT 5: Parcels lE,2E, 3E, 4E, 5E, 6E, and 7E of that certain Survey as recorded July 12, 2007, in Book 34 of Surveys, pages 93 and 94, under Auditor's File No. 200707120013, records of Kittitas County, Washington; being a portion of the West Half of Section 9, Township 18 North, Range 19 East, in the County of Kittitas, State of Washington. TRACT 6: Parcels 1, 2, 3, 4, 5, 6, 7, and 8 of that certain Survey as recorded July 13, 2007, in Book 34 of Surveys, pages 95 and 96, under Auditor's File No. 200707130037, records of Kittitas County, Washington; being a portion of the Southwest Quarter of Section 9, Township 18 North, Range 19 East, W.M., in the County of Kittitas, State of Washington. Minimum Terms for ALE - Exhibit A TRACT 7: Parcels A, B, C, D and E of that certain Survey as recorded July 25, 2007, in Book 34 of Surveys, pages 106 and 107, under Auditor's File No. 200707250023, records of Kittitas County, Washington; being a portion of the West Half of Section 9, Township 18 North, Range 19 East, W.M., in the County of Kittitas, State of Washington. Parcel Number: Abbreviated Legal: Being a ptn of Sec 5, Twp 18N, Rge 19E, W.M. Purported Address: 8001 Naneum Road Ellensburg, Washington 98926 Minimum Terms for ALE — Exhibit A MINIMUM TERMS FOR AGRICULTURAL LAND EASEMENTS EXHIBIT B Impervious Surfaces Minimum Terms for ALE — Exhibit B MINIMUM TERMS FOR AGRICULTURAL LAND EASEMENTS EXHIBIT C Building Envelopes Envelope A 14.5 acres ................. i CV W Envelope B 5.5 acres : - Z ......... rr' .,y.� Building Envelope Boundary Public Road ,wap pratlucad by FORTERRA N Property Subject to Conservation Easement Stream, Canal or Ditch December 16, 2019 subject Tax Boundary Lake or Pond Property and tax parcel boundaries courtesy of Feet Kittites County GIS data published January 2019. 0 500 1,000 s Minimum Terms for ALE — Exhibit C