Exhibit 10.3
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Form of The Forest Bank Forest Management Easement
FOREST MANAGEMENT EASEMENT
This DEED of EASEMENT made this ____ day of ___________, 20__, by
______________ having an address at _________________________________
(hereinafter "Grantor") and THE FOREST BANK, LLC, a Delaware limited liability
company, having an address at _____________________________ (hereinafter
"Grantee").
WHEREAS, Grantor is the fee simple owner of a certain tract of land located
in ________, being all of the lands and premises conveyed to the Grantor by
________, by Deed dated ________, and of record at Deed Book __, Volume __, Page
___ in the Office of the Recorder of Deeds in and for the County of ________, in
the State of ________ in and more particularly described in Attachment 1
(hereinafter "the Property");
WHEREAS, Grantee is a limited liability company whose primary purpose is
the maintenance of healthy ecological systems and the conservation and
management of forest lands in their scenic and forested condition while
providing an economic return to the landowner;
WHEREAS, Grantor has previously conveyed to The Nature Conservancy, a
District of Columbia nonprofit corporation, a Forest Conservation Easement,
recorded prior hereto, restricting and limiting the use of the Property on the
terms and conditions set forth therein;
WHEREAS, Grantor is desirous of maintaining the forests which now exist on
Grantor's property and of enabling those forests and timber resources to be
managed in an environmentally sensitive manner and of receiving an economic
return as described in Attachment 2 [the Forest Bank membership unit
certificate];
WHEREAS, Grantor is willing to grant to Grantee this Easement over said
Property, including the right to manage and selectively harvest the timber
resources thereon, thereby restricting and limiting the use of said Property, on
the terms and conditions and for the purposes hereinafter set forth, and the
Grantee is willing to accept such easement; and
WHEREAS, ▇▇▇▇▇▇▇ agrees by accepting this grant to honor the intentions of
▇▇▇▇▇▇▇ stated herein and to preserve and protect in perpetuity the forest
conservation values of the Property.
NOW, THEREFORE, in consideration of the above and the mutual covenants,
terms, conditions, and restrictions contained herein, and for other good and
valuable consideration, and pursuant to the laws of [state of location of the
property], Grantor hereby voluntarily grants and conveys to Grantee this Forest
Management Easement in perpetuity over the Property of the nature and character
and to the extent hereinafter set forth:
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Section 1. Grantee shall use the Property for forest conservation, and for
--------- forestry, and for no other purposes.
Section 2. Grantor shall use the Property for non-commercial recreation and
---------- open space purposes, and for any purpose not inconsistent with the
management and retention of the property for forest and ecosystem
conservation and forestry purposes as specified herein.
Section 3. Grantor and ▇▇▇▇▇▇▇ acknowledge that the principal objective of this
--------- grant of easement is to conserve and utilize the productive forestry
resources on the Property and to encourage the long-term,
professional management of those resources, subject to the following
objectives (recognizing that the resource values of the Property,
and the state of knowledge as to responsible forest management
standards will evolve over time):
(a) Facilitate economically and ecologically sustainable,
commercially viable management and production of forest and
timber resources without compromising surface water quality,
permanent scenic benefits, wildlife habitat and other
values;
(b) Manage forest stands for high quality sawtimber utilizing
long rotations and maintaining a healthy, and biologically
diverse, forest; and
(c) Conduct forest management and harvesting activities
(including the establishment, maintenance and reclamation of
log landings and skid roads) using the best available
management practices in order to prevent soil erosion and to
protect water quality.
Section 4. On or before ______________, and not less than every ten years
--------- thereafter, Grantee will develop a Forest Management and Stewardship
Plan for the Property (hereinafter, "Forestry Plans"). Each such
Plan shall be consistent with the purposes of this Easement and may
include at least the following elements:
(a) Environmental attributes (topography, soils, wetlands and
streams);
(b) A description of the units into which the property will be
divided by Grantee for management purposes ("Stands");
(c) Forest Management objectives;
(d) Forest stand descriptions (forest types, descriptions, goals
and treatments);
(e) Tract information (history, growth rates, tree quality,
insects and disease, future potential, access and
operability); and
(f) Wildlife and biodiversity considerations (identifications of
species and
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management recommendations).
Section 5. To accomplish the purpose of this Easement, Grantee may:
---------
(a) Preserve and protect the conservation values of the
Property;
(b) Perform and contract for the performance of forest
management activities, and harvest timber, wood and other
forest products existing at the time of this grant and which
may grow on the property in the future, and may replant
trees and seedlings on the property to regenerate forest
growth for future harvesting and management. All of such
activities shall be performed in accordance with Forestry
Plans approved as set forth in Section 4 above, provided
that, prior to commencing timber harvesting activity Grantee
shall provide Grantor with not less than thirty (30) days
prior written notice. Nothing in this clause shall be
interpreted to require Grantee to harvest a Stand, but only
to require that any such harvest be in accordance with the
approved Forestry Plan should Grantee elect to harvest;
(c) Construct, maintain, repair, place and use timber haul
roads, log landings, and skid trails; construct, maintain
and use forestry structures or facilities, together with
necessary access drives and utilities and extract sand
and/or gravel, provided such activities are exclusively for
uses related to the forestry or property maintenance
activities permitted under this Grant; provided further that
such activities are in furtherance of the Forestry Plan
prepared pursuant to Section 4 above, and provided further
that any such construction and the extraction site(s) will
be operated, maintained and closed in a manner which
minimizes and to the extent possible prevents soil erosion
and surface water degradation;
(d) Enter upon the Property at reasonable times in order to
carry out the purposes and activities of this Easement and
otherwise enforce the terms of this Easement; provided that
such entry shall not unreasonably interfere with Grantor's
use and quiet enjoyment of the Property;
(e) Enter the Property and the timber subject to this easement
in any carbon sequestration or other banking or pollution
mitigation program and receive the benefits of such program
or system; and
(f) Prevent any activity on or use of the Property that is
inconsistent with the purpose of this Easement.
Section 6. Any activity on or use of the Property inconsistent with the forest
--------- management purpose of this Easement is prohibited:
(a) The prohibited uses shall not affect Grantor's current
hiking, seasonal
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hunting or outdoor recreational use being made of the
Property and the right to continue such seasonal hunting or
recreational uses, which shall be reserved to the Grantor,
its representatives, successors or assigns;
(b) Nothing shall be done to deny legal right-of-way to
representatives of the Grantee to the portion of a
landowners property that is covered by this easement; and
(c) No other acts or uses will be permitted which will adversely
affect Grantee's ability to carry out its forestry
activities or the preservation of land or water areas on or
adjacent to the Property.
Section 7. Grantor reserves to itself, its representatives, successors and
--------- assigns, all rights accruing from its ownership of the Property,
including the right to engage in or permit or invite others to
engage in all uses of the Property that are not expressly prohibited
herein and are not inconsistent with the purposes of this Easement.
Grantor also retains all responsibilities, costs, and liabilities of
any kind related to the rights retained under this Easement for its
ownership, operation, upkeep and maintenance of the Property,
including the maintenance of adequate liability insurance coverage.
Section 8. Grantee shall keep the Grantor's interest in the Property free of
--------- any liens arising out of any work performed for, materials furnished
to or obligations incurred by Grantee; Grantee shall retain all
responsibilities, costs, and liabilities of any kind related to the
rights granted to and exercised by it under this Easement, including
the maintenance of adequate liability insurance coverage.
Section 9. ▇▇▇▇▇▇▇ agrees to release, hold harmless defend and indemnify
--------- Grantor from any and all liabilities including, but not limited to,
injury, losses, damages, judgments, costs, expenses and fees which
Grantor may suffer or incur as a result of or arising out of the
activities of Grantee on the Property. ▇▇▇▇▇▇▇ agrees to release,
hold harmless, defend and indemnify Grantee from any and all
liabilities including, but not limited to, injury, losses, damages,
judgments, costs, expenses and fees which Grantee may suffer or
incur as a result of or arising out of the activities of Grantor on
the Property.
Section 10. The Grantor agrees to pay any real estate taxes or other
---------- assessments which may be levied on the Property.
Section 11. The Grantor covenants and represents that the Grantor is the sole
---------- owner and is seized of the Property in fee simple and has good
right to grant and convey this Easement; that the Property is free
and clear of any and all encumbrances, including but not limited
to, any mortgages not subordinated to this Easement, and that the
Grantee shall have the use of and enjoy all of the benefits derived
from and arising out of this Easement.
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Section 12. The Grantor covenants and represents that no hazardous substance or
---------- toxic waste exists nor has been generated, treated, stored, used,
disposed of, or deposited in or on the Property, and that there are
not now any underground storage tanks on the Property.
Section 13. In the event of a violation of this Easement, Grantee shall give
---------- written notice to Grantor or other violator of such violation and
require corrective action sufficient to cure the violation and
restore the portion of the Property so injured. In the event the
violation continues or the injury to the Property is not cured
within thirty (30) days of the written notice from Grantee, the
Grantee, or its successor or assign, may institute a suit to enjoin
by ex parte, temporary and/or permanent mandatory or prohibitive
injunction such violation, to require the restoration of the
premises to their prior condition, or in the alternative sue for
damages for breach of covenant. Grantee shall have the right to seek
any legal action or remedy at law or in equity, including specific
performance, to enforce the provisions set forth herein without the
necessity of proving either actual damages or the inadequacy of
other available legal remedies. ▇▇▇▇▇▇▇'s remedies described herein
shall be cumulative and shall not impair or be construed as a waiver
to such right or remedy. Nothing contained herein shall be construed
to entitle Grantee to bring any action for any injury or change in
the Property resulting from causes beyond Grantor's control
including fire, flood or storm.
Section 14. If this Easement is taken, in whole or in part, by exercise of the
---------- power of eminent domain, Grantee as well as Grantor, shall be
entitled to compensation for their respective interests in
accordance with applicable law.
Section 15. Grantor agrees that these restrictions will be inserted or
---------- referenced in any subsequent deed or other legal instrument which
conveys either the fee simple title or possessory interest in the
subject Property.
Section 16. The grant of this Easement in no way grants the public the right to
---------- enter said Property for any purpose.
Section 17. This Easement shall be liberally construed in favor of the grant to
---------- effect the purpose of this Easement. If any provision of this
Easement is found to be invalid, the remaining provisions shall not
be altered thereby.
TO HAVE AND TO HOLD unto Grantee, its successor and assigns forever.
WITNESS the following signatures and seals; and
IN WITNESS WHEREOF, The Forest Bank, LLC, a Delaware limited liability
company,
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has caused this instrument to be executed on its behalf by its duly authorized
representative.
LANDOWNER:
______________________________[SEAL]
______________________________[SEAL]
THE FOREST BANK, LLC,
a Delaware limited liability company
By:___________________________
Its:___________________________
STATE OF______________________
CITY/COUNTY OF ____________________, to-wit:
The foregoing instrument was acknowledged before me in the jurisdiction
aforesaid this _____ day of _______________, 20__, by ________________________.
My commission expires: ___________________________.
________________________________
Notary Public
STATE OF______________________
CITY/COUNTY OF ____________________, to-wit:
The foregoing instrument was acknowledged before me in the jurisdiction
aforesaid this _____ day of _____________, 20__, by _______________________, who
is _________________ of The Forest Bank, LLC, a Delaware limited liability
company, on behalf of the company.
My commission expires: ___________________________.
________________________________
Notary Public
