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12. PROCEDURE IN THE EVENT OF CONDEMNATION OR EMINENT <br />DOMAIN. Grantor and Grantee recognize that the partial sale of this Conservation Easement <br />gives rise to a property right, immediately vested in the Grantee, with a fair market value equal <br />to the proportionate value that the Conservation Easement bears to the value of the Easement <br />Area prior to the restrictions imposed by the Conservation Easement. Accordingly, if any <br />condemnation or eminent domain action shall betaken, on all or part of the Easement Area, by <br />any authorized authority, said authority shall be liable to the Grantee for the value of the property <br />right vested in the Grantee at the time of the signing of this Conservation Easement. <br />If condemnation or a taking by eminent domain of a part of the Easement Area or the <br />entire Easement Area by a public authority renders it impossible to fulfill any of the conservation <br />purposes of this Conservation Easement on all or part of the Easement Area, this Conservation <br />Easement may be terminated or modified accordingly through condemnation proceedings.. <br />Grantor and Grantee agree that this Conservation Easement is a currently vested real property <br />right with a value equal to the proportionate value of the Conservation Easement to the <br />unencumbered value of the fee, as of the date of this Conservation Easement. If the <br />Conservation Easement is terminated or modified and any or all of the Easement Area is sold or <br />taken for public use, then, as required by Section 1.170A-14(g)(6) of the IRS regulations, the <br />Grantee shall be entitled to a percentage of gross sale proceeds or condemnation award (minus <br />any amount attributed to new improvements made after the date of the conveyance, which <br />amount shall be reserved to Grantor) equal to the ratio of the appraised value of this <br />Conservation Easement to the unrestricted fair market value of the Easement Area, as these <br />values are determined on the date of this Conservation Easement, subject to any applicable law <br />which expressly provides~for a different disposition of the proceeds. <br />If, however, after the condemnation or eminent domain proceedings, a court of <br />jurisdiction does not include in the just compensation awarded as a result of the taking, the <br />amount of the Conservation Easement value, then the Grantor shall not be responsible to share <br />any proceeds awarded. <br />All condemnation related expenses, including reasonable attorney fees, incurred by the <br />Grantor and the Grantee shall be paid out of any recovered proceeds prior to distribution of the <br />net proceeds as described herein. <br />13. INTERPRETATION. This Conservation Easement shall be interpreted under <br />the laws of North Carolina, resolving any ambiguities and questions of the validity of specific <br />provisions as to give maximum effect to its conservation purposes. <br />14. TITLE. The Grantor covenants and represents that it is the sole owner and seized <br />of Easement Area in fee simple and has good right to grant and convey this Conservation <br />Easement; that the Easement Area is free and clear of any mortgages not subordinated to this <br />Conservation Easement, and that the Grantee shall have the use of and enjoy all the benefits <br />derived from and arising out of this Conservation Easement, subject to the Exceptions to Title <br />identified on Exhibit C hereto. . <br />Page 12 of 20 <br />