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Penny Conservation Easement Draft Nov. 27, 2006 BOCC 16 <br />purposes of this Conservation Easement and shall comply with Sec. 170(h) of the Internal <br />Revenue Code, or any regulations promulgated in accordance with that section. Any such <br />amendment shall also be consistent with the Uniform Conservation and Historic Preservation <br />Agreements Act, N.C. Gen. Stat. § 121-34 et seq., or any regulations promulgated pursuant to <br />that law. The Grantors and Grantee have no right or power to agree to any amendment that <br />would affect the enforceability of this Conservation Easement. <br />11. PROCEDURE IN THE EVENT OF TERMINATION OF <br />CONSERVATION EASEMENT. If it determines that conditions on or surrounding the <br />Grantors' Property change so much that it becomes impossible to fulfill the conservation <br />purposes of this Conservation Easement, a court with jurisdiction may, at the joint request of <br />both the Grantors and the Grantee, terminate or modify the Conservation Easement created by <br />this Deed in accordance with applicable State law. If the Conservation Easement is terminated <br />and the Grantors' Property is sold, then as required by Section 1.1 70A-14(g)(6) of the IRS <br />regulations, the Grantee shall be entitled to a percentage of gross sale proceeds or condemnation <br />award (minus any amount attributed to new improvements made after the date of the <br />conveyance, which amount shall be reserved to Grantor), equal to the ratio of the appraised value <br />of this Conservation Easement to the unrestricted fair market value of the Property, 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 />All termination related expenses, including reasonable attorney fees, incurred by the <br />Grantors and the Grantee shall be paid out of any recovered proceeds prior to distribution of the <br />net proceeds as described herein. <br />12. PROCEDURE IN THE EVENT OF CONDEMNATION OR EMINENT <br />DOMAIN. Grantors 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 Grantors' <br />Property prior to the restrictions imposed by the Conservation Easement. Accordingly, if any <br />condemnation or eminent domain action shall be taken, on all or part of the Grantors' Property, <br />by any authorized authority, said authority shall be liable to the Grantee for the value of the <br />property 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 Grantors' Property or the <br />entire Property 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 Property, this Conservation <br />Easement may be terminated or modified accordingly through condemnation proceedings. <br />Grantors 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 Grantors' Property is sold <br />or taken for public use, then, as required by Section 1. 1 70A- I 4(g)(6) of the IRS regulations, the <br />Page 16 of 15