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HomeMy WebLinkAboutZIP Peconic Wells, LLC MELISSA A. SPIRO LAND PRESERVATION COORDINATOR melissa.spiro@ town.southold.ny.us Telephone (631) 765-571 l Facsimile (63 I) 765-6640 OFFICE LOCATION: Town Hall Annex 54375 State Route 25 (comer of Main Road & Youngs Avenue) Southold, New York MAILING ADDRESS: P.O. Box 1179 Southold, NY 11971-0959 DEPARTMENT OF LAND PRESERVATION TOWN OF SOUTHOLD To: From: Date: Re: RECEIVED Elizabeth A. Neville Town Clerk SE? 1 7 10 Melanie Doroski Sr. Administrative Assistant '~outhold Town Cle~ September 16, 2010 ZIP PECONIC WELLS, LLC to TOWN OF SOUTHOLD Development Rights Easement SCTM #1000-86.-1-10.2 Location: 2350 Wells Road, Peconic Betty: Enclosed for safekeeping in your office, please find the following documents: · Suffolk County Clerk Records Office Recording Page · Suffolk County Recording & Endorsement Page · Original Grant of Development Rights Easement dated August 3, 3010, between ZIP Peconic Wells, LLC and the Town of Southold, recorded in the Suffolk County Clerk's office on 8/16/2010, in Liber D00012634 at Page 587 · Title insurance policy #O-8911-544232 issued by Stewart Title Insurance Company on August 3, 3010 in the insured amount of $2,410,535.80 (title no. ST0-801136) · Closing Statement Thank you. Melanie encs. cc: Assessors w/copy of recorded easement & survey map SUFFOLK COUNTY CLERK RECORDS OFFICE RECORDING PAGE T~pe of Instrument: EASEMENT Number of Pages: 30 Receipt Number : 10-0095798 TRANSFER TAX NUMBER: 10-01192 District: 1000 Deed Amount: Section: Block: 086.00 01.00 EXAMINED AND CHARGED AS FOLLOWS $2,410,535.80 Recorded: At: LIBER: PAGE: Lot: Received the Following Fees For Above Instrument Exempt Page/Filing $150.00 NO Handling COE $5.00 NO NYS SRCHG TP-584 $5.00 NO Notation Cert. Copies $37.50 NO RPT Transfer tax $0.00 NO Comm. Pres Fees Paid TRANSFER TAX NUMBER: 10-01192 THIS PAGE IS A PART OF THE INSTRUMENT THIS IS NOT A BILL JUDITH A. PASCALE County Clerk, Suffolk County 08/16/2010 01:19:27 PM D00012634 587 010.012 Exempt $20.00 NO $15.00 NO $0.00 NO $30.00 NO $0.00 NO $262.50 SEP 1 5 20t0 DEPT. OF LAND PRESERVATION Number of pages This document will be public record. Please remove all Social Security Numbers prior to recording. Deed / Mortgage Instrument ,I Deed / Mortgage Tax Stamp FEES Reco[ding / Filing Stamps Page / Filing Fee Handling 20. 00 TP-584 Notation EA-52 17 (County) EA-5217 (State) R.P.T.S.A. Comm. of Ed. 5. 00 Affidavit NYS Surcharge 15. 00 Other 4 ] Dist./ti~ Sectic Real Pmperty Tax Service Agency Verification 6 Sub Total Sub Total Grand Total ~,F~, 5'~O 10017836 ~.ooo oeeoo o~.oo o~.oo~.2 Satisfactions/Discharges/Releases List Property Owners Mailing Address RECORD & RETURN TO: ~o,~x ~~, ~ V 1/¢71 Mail to: Judith A. Pascale, Suffolk County Clerk 310 Center Drive, Riverhead, NY 11901 www. suffolkcountyny, gov/clerk Mortgage Amt. 1. Basic Tax 2. Additional Tax Sub Total Spec./Assit. or Spec./Add. TOT. MTG. TAX Dual Town __ Dual County__ Held for Appoin~.~nt Transfer Tax Mansion Tax The property covered by this mortgage is or will be improved by a one or two family dwelling only. YES or NO If NO, see appropriate tax clause on page # of-this instrumm~t. Community Preservation Fund 2onsideration Amount ~,. 4/~ ~J~'-,~ ~.PF Tax Due $ .? Improved Vacant Land`/ TD TD ]i~ IN~a Title Company Information me~7'~"~r' 77r3~ Suffolk County Recording & Endorsement Page This page [?orms part of the attached TO (SPECIFY TYPE OF INSTRUMENT) The premises herein is situated in SUFFOLK COUNTY, NEW YORK. made by: In the TOWN of In the VILLAGE or HAMLET of BOXES 6 THI~II 8 MUST BE TYPED OR PRINTED IN BLACK INK ONI.Y PRIOR TO RECORDING OR FILING. IMI"OI(TAN T NOTICI~. If the document you've just recorded is your SATISFACTION OF MORTGAGF, please be aware of the following: ' If a portion of your monthly mortgage payment included your property taxes, *you will now need to contact your local Town Tax Receiver so that you may be billed dlrectlv for all future orooe~ tV statements. Local property taxes are payable twice a year: on or before January 10~ and on or before May 31'~. Failure t0 make paymefii& in a timely fashion could result in a penalty. Please contact your local Town Tax Receiver with any question8 regarding property tax Payment. BabylonTown Reqel~er of Taxes 200 East Sunrlsi~ Highway North Llndenhursi, N.Y. 11757 (631) 957-3004 Riverhead Town Receiver of Tl~xes 200 Howell Avenue Riverhead, N.Y. 11901 (631) 727-3200 Brookhaven Town Receiver of Taxes One Independence Hill Farmingvllle, N.Y. 11738 (631) 451-9009 Shelter Island Town Receiver of Taxes Shelter Island Town Hall Shelter Island, N.Y. 11964 (631) 749-3338 East Hampton Town Receiver of Taxes 300 Pantigo Place East Hampton, N.Y. 11937 (631) 324-2770 Smlthtown Town Receiver of Taxes 99 West Main Street Smithtown, N.Y. 11787 (631) 360-7610 Huntington Town Receiver of Taxes 100 Main Street Huntington, N.Y. 11743 (631) 351-3217 Southampton Town Receiver of Taxes 116 Hampton Road Southampton, N.Y. 11968 {631) 283-6514 Islip Town Receiver of Taxes 40 Nassau Avenue Isllp, N.Y. 11751 (631) 224-5580 Southold Town Receiver of Taxes 53095 Main Street Southold, N.Y. 11971 (631) 765-1803 Sincerely, Judith A. Pascale Suffolk County Clerk GRANT OF DEVELOPMENT RIGHTS EASEMENT THIS GRANT OF DEVELOPMENT RIGHTS EASEMENT, is made on the ,.~--*~ day of August, 2010, at Southold, New York. The parties are ZIP PECONIC WELLS LLC, c/o Lloyd P. Zuckerberg, 717 Fifth Avenue, 19TM floor, New York, NY 10022 (herein called "Grantor"), and the TOWN OF SOUTHOLD, a municipal corporation, having its principal office at 53095 Main Road, P.O. Box 1179, Southold, New York 11971 (herein called "Grantee" or "Local Grantee") and to the UNITED STATES OF AMERICA,~(herein called the "United States"), by and through the United States Department of Agriculture, Natural Resources Conservation Service, acting on behalf of the Commodity Credit Corporation (herein called the "United States"). The Local Grantee and the United States are collectively referred to as the "Grantees", The Grantors and Grantees are collectively referred to as the "Parties". ~ 'c/o ~/s,~,,) -,u~,, ~Vl ~ 54Un~, ~4- INTRODUCTION WHEREAS, Grantor is the owner in fee simple of certain real property located in the Town of Southold, Suffolk County, New York, identified as part of SCTM #1000-86-1-10.9 more fully described in SCHEDULE "A" attached hereto and made a part hereof and hereinafter referred to as the "Property" and shown on the survey prepared by Howard W. Young, Licensed Land Surveyor, for Young & Young, dated February 1, 2010, and last revised July 19, 2010 (a reduced copy of which is attached hereto and made a part hereof and hereinafter referred to as the "Survey"); and WHEREAS, the Property is located in the R-80 Zoning District of the Town of Southold; and WHEREAS, the Property contains soils classified as Class I and Class II worthy of conservation as identified by the United States Department of Agriculture, Natural Resources Conservation Service's (formerly the Soil Conservation Service) Soil Survey of Suffolk County, New York; and WHEREAS, The Federal Farm and Ranch Lands Protection Program's purpose is to purchase conservation easements ' o0 land with prime, unique, or other productive soil for the purpose of protecting topsoil from conversion to nonagricultural uses (16 U.S.C. 3838h and 3838i). Under the authority of the Farm and Ranch Lands Protection Program, the United States Department of Agriculture Natural Resources Conservation Service (hereinafter the "United States" or "NRCS") acting on behalf of the Commodity Credit Corporation has provided $990,000.00 to the Grantee for the acquisition of this Easement, entitling the United States to the rights identified herein. WHEREAS, the Property is part of the New York State Agricultural District #1, and the Grantor wishes to continue using the Property for agricultural production as defined in this Easement; and WHEREAS, the Property is currently used as sod crop in rotation with other specialty crops; and WHEREAS, it is the policy of the Town of Southold (the "Town"), as articulated in the Town's Master Plan of 1973, amended in 1986 and :~989 as adopted by the Town Board, Town of Southold, and §272-a of the New York State Town Law ("Town Law") to protect environmentally sensitive areas, preserve prime agricultural soils, to protect the scenic, open space character of the Town and to protect the Town's resort and agricultural economy; and WHEREAS, the Property in its present scenic and agricultural condition has substantial and significant value as an aesthetic and agricultural resource since it has not been subject to any substantial development; and WHEREAS, Grantor and Grantee recognize the value and special character of the region in which the Property is located, and Grantor and Grantee have, in common, the purpose and objective of protecting and conserving the present state and inherent, tangible and intangible values of the Property as an aesthetic, natural, scenic and agricultural resource; and WHEREAS, Grantee has determined it to be desirable and beneficial and has requested Grantor, for itself and its successors and assigns, to grant a Development Rights Easement to Grantee in order to restrict the further development of the Property while permitting compatible uses thereof; NOW THEREFORE, in consideration of Two Million Four Hundred Ten Thousand Five Hundred Thirty-Five and 80/100 DOLLARS 2 ($2,410,535.80) and other good and valuable consideration paid to the Grantor, the receipt of which is hereby acknowledged, the Grantor does hereby grant, transfer, bargain, sell and convey to the Grantee a Development Rights Easement, in gross, which shall be binding upon and shall restrict the premises shown and designated as the Property herein, more particularly bounded and described on Schedule "A" annexed hereto and made a part of this instrument. TO HAVEAND TO HOLD said Development Rights Easement and the rights and interests in connection with it and as hereinafter set forth with respect to the Property unto the Grantee, its successors and assigns forever, reserving, however, for the direct use and benefit of the Grantor, its legal representatives, successors and assigns, the exclusive right of occupancy and of use of the Property, subject to the limitations, condition, covenants, agreements, provisions and use restriction hereinafter set forth, which shall constitute and shall be servitudes upon and with respect to the Property. The Grantor, for itself, and for and on behalf of its legal representatives, successors and assigns, hereby covenants and agrees as follows: 0.01 Grantor's Warranty Grantor warrants and represents to the Grantee that Grantor is the owner of the Property described in Schedule A, free of any mortgages or liens, as set forth in Stewart Title Insurance Company Title Report ST0-801136 and possesses the right to grant this easement. 0.02 Grantee's Status Grantee warrants and represents to Grantor that Grantee is a municipal corporation organized and existing under the laws of the State of New York State and is authorized under {}64 of Town Law and {}247 of the New York State General Municipal Law ("General Municipal Law") to acquire fee title or lesser interests in land, including development rights, easements, covenants, and other contractual rights which may be necessary or desirable for the preservation and retention of agricultural lands, open spaces and natural or scenic resources. 0.03 Purpose The parties recognize the environmental, natural, scenic and agricultural values of the Property and have the common purpose of preserving these values by limiting nonagricultural uses of the Property. This instrument is intended to convey a Development Rights Easement on the Property by Grantor to Grantee, exclusively for the purpose of preserving its character in perpetuity for its environmental, scenic, agricultural and natural values by preventing the use or development of the Property for any purpose or in any manner contrary to the provisions hereof, in furtherance of federal, New York State and local conservation policies. 0.04 Governmental Recognition New York State has recognized the importance of private efforts to preserve rural land in a scenic, natural, and open condition through conservation restrictions by the enactment of General Municipal Law §247. Similar recognition by the federal government includes §170(h) of the Tnternal Revenue Code (":IRC") and other federal statutes. 0.05 Documentation Grantee acknowledges by acceptance of this Development Rights Easement that present uses of the Property are compatible with the purposes of this Easement. ~[n order to aid in identifying and documenting the present condition of the Property's natural, ~cenic, agricultural, and aesthetic resources and otherwise to aid in identifying and documenting the Property's agricultural values as of the date hereof, to assist Grantor and Grantee with monitoring the uses and activities on the Property and ensuring compliance with the terms hereof, Grantee has prepared, with Grantor's cooperation, an inventory of the Property's relevant features and conditions (the "Baseline Documentation"). This Baseline Document includes, but need not be limited to, a survey dated February 1, 2010 last revised .luly 19, 2010 prepared by Howard W. Young, Licensed Land Surveyor, for Young & Young, a Phase 1 Environmental Site Assessment dated August 22, 2008 by Nelson, Pope & Voorhis, LLC, and a letter dated November 26, 2008 from the New York State Department of Environmental Conservation to Nelson, Pope & Voorhis, LLC. 4 Grantor and Grantee acknowledge and agree that in the event a controversy arises with respect to the nature and extent of the Grantor's uses of the Property or its physical condition as of the date hereof, the parties shall not be foreclosed from utilizing any other relevant or material documents, surveys, reports, photographs or other evidence to assist in the resolution of the controversy. 0.06 Recitation Tn consideration of the previously recited facts, mutual promises, undertakings, and forbearances contained in this Development Rights Easement, the parties agree upon its provisions, intending to be bound by it. ARTICLE ONE THE EASENENT 1.01 Type This instrument conveys a Development Rights Easement (herein called the "Easement"). This Easement shall consist of the limitations, agreements, covenants, use restrictions, rights, terms, and conditions recited herein. Reference to this "Easement" or its "provisions" shall include any and all of those limitations, covenants, use restrictions, rights, terms and conditions. 1.02 Definitions "Development Rights" shall mean the permanent legal interest and right to prohibit or restrict the use of the Property for uses or purposes consistent with the terms of this Easement, including agricultural production as that term is presently referenced in §247 of the General Municipal Law and/or defined in Chapter 70 of the Town Code of the Town of Southold (the "Town Code" or "Code") and including the production of crops, livestock and livestock products as defined in Section 301(2)(a)-(j) of the New York State Agriculture and Markets Law ("Agriculture and Markets Law"), now or as such laws and/or Code may be amended. No future restrictions in said laws and/or Code or limitation in the definitions set forth in said laws and/or Code shall preclude a use that is permitted under the current law and/or Code. 5 "Improvement" shall mean any addition to raw land, such as structures, fences, wells or drainage. "Riding Academy" shall mean a business use of a lot for any of the following purposes: the letting of horses for hire to individuals or groups whether supervised or unsupervised, horseback riding instruction or the holding of horse shows or other equine events. "Structure" shall mean anything constructed or erected on or under the ground or upon another structure or building, including walkways. Structures shall not include trellis, posts and wiring, farm irrigation systems, nursery mats, or fencing necessary for agricultural operations or to mark the boundaries of the Property, including without limitation fencing to keep out predator animals, including deer. Approvals for those items listed in the preceding sentence shall be as required by applicable provisions of the Town Code. 1.03 Duration This Easement shall be a burden upon and run with the Property in perpetuity. 1.04 Effect This Easement shall run with the Property as an incorporeal interest in the Property, and shall extend to and be binding upon Grantor, Grantor's agents, tenants, occupants, heirs, personal representatives, successors and assigns, and all other individuals and entities and provides Grantee with the right to administer, manage and enforce the Easement as provided herein. The word "Grantor" when used herein shall include all of those persons or entities. Any rights, obligations, and interests herein granted to Grantor and/or Grantee shall also be deemed granted to each and every one of its subsequent agents, successors, and assigns, and the word "Grantor and/or Grantee" when used herein shall include all of those persons or entities. ARTICLE TWO SALE 6 GRANTOR, for Two Million Four Hundred Ten Thousand Five Hundred Thirty-Five and 80/100 ($ 2,410,535.80) good and valuable consideration, hereby grants, releases, and conveys to Grantee this Easement, in perpetuity, together with all rights to enforce it. Grantee hereby accepts this Easement in perpetuity, and undertakes to enforce it against Grantor. ARTICLE THREE PROHIBITED ACTS From and after the date of this Easement, the following acts, uses and practices shall be prohibited forever upon or within the Property: 3.0i Structures No structures may be erected or constructed on the Property except as permitted by the Southold Town Land Preservation Committee ("Land Preservation Committee") and other applicable provisions of the Town Code and 1.02 and 4.06 of this Easement. 3.02 Excavation and Removal of Materials; Mining The excavating or filling of the Property, except as may be necessary to construct and maintain permitted structures and improvements on the Property or in connection with necessary drainage or soil conservation programs, shall be prohibited, without the prior written consent of Grantee. Mineral exploitation, and extraction by any method, surface or subsurface, is prohibited. The removal of topsoil, sand, or other materials shall not take place, nor shall the topography of the Property be changed, except to construct and maintain the permitted structures and improvements on the Property and for purposes of erosion control and soil management, or in connection with normal agricultural/horticultural activities, without the prior written consent of Grantee. 3.03 Subdivision Except as provided in this Section 3.03, the Property may not be further subdivided pursuant to Town Law §§265, 276 or 277 or § 335 of the Real Property Law, as they may be amended, or any other applicable State or local law. "Subdivision" shall include the division of the portion of the Property from which the development rights are acquired into two or more parcels, in whole or in part. Grantor may, subject to approval by the Planning Board of the Town of Southold and as otherwise required by applicable law, subdivide the property, provided that all resulting parcels contain at least 10 acres of preserved agricultural land subject to a development rights easement. Notwithstanding this Section 3.03, upon the death of Grantor, the underlying fee interest may be divided by conveyance of parts thereof to Grantor's executor, trustee, heirs or next of kin by will or operation of law. The United States Secretary of Agriculture shall be notified prior to such division or conveyance. 3.04 Dumpinq The dumping or accumulation of unsightly or offensive materials including, but not limited to trash, garbage, sawdust, ashes or chemical waste on the Property shall be prohibited. This prohibition shall exclude materials used in the normal course of sound agricultural practices on the Property, including fertilization, composting and crop removal. 3.05 Signs The display of signs, billboards, or advertisements shall be prohibited, except signs whose placement, number, and design do not significantly diminish the scenic character of the Property and only for any of the following purposes: (a) to state the name of the Property and the names and addresses of the occupants and the character of the business conducted thereon, (b) to temporarily advertise the Property or any portion thereof for sale or rent, (c) to post the Property to control unauthorized entry or use, or (d) with the consent of the Grantor, to announce Grantee's easement. Signs are subject to regulatory requirements of the Town. 3.06 Utilities The creation or placement of overhead utility transmission lines, utility poles, wires, pipes, wells or drainage systems ("utilities") on the g Property to service structures approved pursuant to Section 4.06 shall be prohibited without the prior written consent of the Grantee. Underground utilities must, to the extent possible, be constructed within 30 feet of the centerline of any roads or driveways, and may be used solely to service the permitted structures on the Property. The Property may not be used for the creation or placement of utilities to service any other properties. 3.07 Prohibited Uses Except for uses specifically permitted by this Easement, the use of the Property or structures on it for any residential, commercial or industrial uses, permanent or temporary, including but not limited to a riding academy, shall be prohibited. For the purposes of this section, agricultural production, as that term is presently referenced in {}247 of the General Municipal Law and/or defined in Chapter 70 of the Town Code, and including the production of crops, livestock and livestock products as defined in Section 301(2)(a)-(j) of the Agriculture and Markets Law, now or as such laws and/or Code may be amended, shall not be considered a commercial use. Uses, improvements and activities permitted by the Town Code now or in the future on agricultural lands protected by a development rights easement or other instrument, including but not limited to farmstands, shall not be considered a commercial use. No improvements, uses or activities inconsistent with current or future agricultural production shall be permitted on the Property. Under no circumstances shall athletic fields, golf courses or ranges, commercial airstrips and helicopter pads, motorcross biking, or any other improvements or activity inconsistent with current or future agricultural production be permitted on the Property. 3.08 Soil and Water Any use or activity that causes or is likely to cause soil degradation or erosion or pollution of any surface or subsurface waters shall be prohibited. This prohibition shall not be construed as extending to agricultural operations and practices (including, without limitation, the use of agrochemicals such as fertilizers, pesticides, herbicides, and fungicides) that are in accordance with sound agricultural management practices of the NRCS. 3.09 Conservation Plan 9 All agricultural operations on the Property shall be conducted in a manner consistent with a resource management system (RMS) Conservation Plan (the "Conservation Plan") prepared by the NRCS utilizing the standards and specifications of the NRCS Field Office Technical Guide, 7 CFR part 12 and approved by the Suffolk County Soil and Water Conservation District. All lands enrolled in the Farm and Ranch Lands Protection Program will be subject to the Conservation Plan. The resource management system for cropland, prescribed in the Conservation Plan for all cropland enrolled in FRPP will assure that selected conservation practice alternatives will prevent sheet and rill erosion from exceeding the current published soil loss tolerance level. Grantor shall give Grantee copies of the Conservation Plan upon request and advise Grantee of amendments thereto so as to enable Grantee to keep its records current. 3.10 Conservation Compliance Provisions of the Conservation Plan As required by Section 1238! of the Food Security Act of 1985, as amended, the Grantor, his/her heirs, successors, or assigns, shall conduct all agricultural operations on the Property in a manner consistent with a conservation plan (the "Conservation Plan") prepared in consultation with NRCS and approved by the Suffolk County Soil and Water Conservation District. This Conservation Plan shall be developed using the standards and specifications of the NRC$ Field Office Technical Guide (FOTG) and 7 CFR Part 12 that are in effect on August 3, 2010. However, the Grantor may develop and implement a conservation plan that proposes a higher level of conservation and is consistent with the NRCS Field Office Technical Guide standards and specifications. NRCS shall have the right to enter upon the Property, with advance notice to the Grantor, in order to monitor compliance with the Conservation Plan. !n the event of noncompliance with the Conservation Plan, NRCS shall work with the Grantor to explore methods of compliance and give the Grantor a reasonable amount of time, not to exceed twelve months, to take corrective action. If the Grantor does not comply with the Conservation Plan, NRC$ will inform Grantee of the Grantor's noncompliance. The Grantee shall take all reasonable steps (including efforts at securing voluntary compliance and, if necessary, appropriate legal action) to secure compliance with the Conservation Plan following written notification from NRCS that (a) there is a substantial, ongoing event or circumstance of non-compliance with the Conservation Plan, 10 (b) NRCS has worked with the Grantor to correct such noncompliance, and (c) Grantor has exhausted its appeal rights under applicable NRCS regulations. If the NRCS standards and specifications for highly erodible land are revised after the date of this Grant based on an Act of Congress, NRCS will work cooperatively with the Grantor to develop and implement a revised conservation plan. The provisions of this section apply to the highly erodible land conservation requirements of the Farm and Ranch Lands Protection Program and are not intended to affect any other natural resources conservation requirements to which the Grantor may be or become subject. 3,11 Drainaqe The use of the Property for a leaching or sewage disposal field shall be prohibited. The use of the Property for a drainage basin or sump shall be prohibited, except in accordance with sound agricultural management practices and the Conservation Plan and in order to control flooding or soil erosion on the Property. 3.12 Development Rights The use of the acreage of this Property for purposes of calculating lot yield on any other Property shall be prohibited. Grantor hereby grants to Grantee all existing development rights (and any further development rights that may be created through a rezoning of the Property) on the Property, except for the right to construct, maintain and replace any pre-existing structures, and to construct new structures, as such rights may be provided in Section 4.06, and the parties agree that any other such development rights shall be terminated and extinguished and may not be used or transferred to any other parcels. ARTICLE FOUR GRANTOR'S RIGHTS 4.01 Ownership Subject to the provisions of ARTICLE THREE, Grantor shall retain all other rights of ownership in the Property, some of which are more particularly described in this ARTICLE FOUR. 4.02 Possession Grantor shall continue to have the right to exclusive possession of the Property. 4.03 Use Grantor shall have the right to use the Property in any manner and for any purpose consistent with and not prohibited by this Easement, as well as applicable local, State, or federal law. Grantor shall have the right to use the Property for uses, improvements and activities permitted by the Town Code, now or in the future, on agricultural lands protected by a development rights easement or other instrument, including, but not limited to farmstands and for educational or training programs related to agricultural production or activities. Grantor shall also have the right to use the Property for traditional private recreational uses, provided such recreational uses are conducted for the personal enjoyment of Grantor, are compatible with farming, and are otherwise consistent with and do not derogate from or defeat the Purpose of this Easement or other applicable law. These uses shall not be offered or provided for the commercial purposes, including the commercial gain of Grantor or others. 4.04 Landscaping Activities Grantor shall have the right to continue the current and/or customary modes of landscaping, pruning and grounds maintenance on the Property as evidenced by the documentation set forth in Section 0.05. Grantor shall have the right to remove or restore trees, shrubs, or other vegetation when dead, diseased, decayed or damaged or interfering with agricultural production, to thin and prune trees to maintain or improve the appearance of the property, and to mow the property. 4.05 Aqricultural Production and Activities Grantor shall have the right to engage in all types of agricultural production as the term is referenced in Section 247 of the General Municipal Law and/or defined in Chapter 70 of the Town Code, and including the production of crops, livestock and livestock products as defined in Section 301(2)(a)-(j) of the Agriculture and Markets Law, 12 now or as such laws and/or Code may be amended. No future restriction in said laws and/or Code or limitation in the definitions set forth in said laws and/or Code shall preclude a use that is permitted under the current law and/or Code. Grantor may offer "U-Pick" operations and/or the use of a corn maze to the general public, provided that such activities are conducted in conjunction with seasonal harvests, do not interfere with agricultural production and are otherwise consistent with and do not derogate from or defeat the Purpose of this Easement or other applicable laws. Notwithstanding the definition of agricultural production in Chapter 70 of the Town Code or any successor chapter, structures shall be prohibited except as set forth in Section 4.06 herein and as permitted by the Town Code now or in the future on agricultural lands protected by a development rights easement or other instrument, including but not limited to farmstands. 4.06 Structures A. Allowable Tmprovements. Grantor shall have the right to erect and maintain the following improvements on the Property, as may be permitted by the Town Code and subject to the approval of the Town of Southold Land Preservation Committee, provided the improvements are consistent with and do not derogate from or defeat the Purpose of this Easement or other applicable laws: Underground facilities used to supply utilities solely for the use and enjoyment of the Property; (ii) New construction, including drainage improvement structures, provided such structures are necessary for or accessory to agricultural production; any new construction as permitted by this 4.06 is restricted to the Agricultural Structure Area shown on the Survey, described in Schedule "B" attached and made a part hereof; (ii) Renovation, maintenance and repairs of any existing structures or structures built or permitted pursuant to this Section 4.06, provided the primary purpose of the structure remains agricultural; (iv) Lot coverage shall be limited to 2% of the Property. B. Conditions. Any allowable improvements shall protect prime agricultural soils, agricultural production, open space and scenic vistas, and otherwise be consistent with the Purpose of this Easement. No construction is permitted outside of the Agricultural Structure Area described in this 4.06. C. Environmental Sensitivity During Construction. The use and location of any improvement permitted hereunder shall be consistent with the purposes intended herein, and construction of any such improvement shall minimize disturbances to the environment. Grantor shall employ erosion and sediment control measures to mitigate any storm water runoff, including but not limited to minimal removal of vegetation, minimal movement of earth and minimal clearance of access routes for construction vehicles. D. Replacement of Improvements. In the event of damage resulting from casualty loss to an extent which renders repair of any existing improvements or improvements built or permitted pursuant to this Section 4.06 impractical, erection of a structure of comparable size, use, and general design to the damaged structure shall be permitted in kind and within the same general location, subject, to the review and written approval of Grantee, pursuant to applicable provisions of the Town Code. 4.07 Notice Grantor shall notify Grantee, in writing, before the construction of any permanent or temporary structures as permitted in Section 4.06 herein and shall file all necessary applications and obtain all necessary approvals that may be required by this Easement or by the Town Code, and shall provide documentation as may be required for such applications. 4.08 Alienability Grantor shall have the right to convey, mortgage or lease all of its remaining interest in the Property but only subject to this Easement. Grantor shall promptly notify Grantee and the United States Secretary of Agriculture of any conveyance of any interest in the Property, including the full name and mailing address of any transferee, and the individual principals thereof, under any such conveyance. The instrument of any such conveyance shall specifically 14 set forth that the interest thereby conveyed is subject to this Easement, without modification or amendment of the terms of this Easement, and shall incorporate this Easement by reference, specifically setting for the date, office, liber and page of the recording hereof. The failure of any such instrument to comply with the provisions hereof shall not affect Grantee's rights hereunder. 4.09 Further Restriction Nothing in this Easement shall prohibit or preclude Grantor from further restricting the use, improvements or structures on the Property. Any such further restrictions shall be consistent with and in furtherance of the general intent and purpose of this Easement as set forth in Section 0.03. ARTICLE FIVE GRANTOR'S OBLIGATIONS 5.01 Taxes and Assessments Grantor shall continue to pay all taxes, levies, and assessments and other governmental or municipal charges, which may become a lien on the Property, including any taxes or levies imposed to make those payments subject, however, to Grantor's right to grieve or contest such assessment. The failure of Grantor to pay all such taxes, levies and assessments and other governmental or municipal charges shall not cause an alienation of any rights or interests acquired herein by Grantee. 5.02 Liability and Indemnification Grantee and the United States have no obligations whatsoever, express or implied, relating to the use, maintenance or operation of the Property. Grantee's or the United States' exercise of, or failure to exercise, any right conferred by this Easement shall not be deemed to be management or control of the activities on the Property. Grantee shall not be liable to Grantor for injuries or death to persons or damage to property or any other harm in connection with Grantee's administration and/or enforcement of this Easement, unless such harm is due to the negligence of Grantee or its agents, in which case liability shall be apportioned accordingly. Grantor shall indemnify and hold harmless Grantee, and the United States of America, their employees, agents and assigns from any and all costs, claims or liability, including but not limited to reasonable attorneys fees arising from any personal injury, accidents, negligence or damage relating to the Property, or any claim thereof, unless due to the negligence of Grantee or its agents, in which case liability shall be apportioned accordingly. Grantor further agrees to indemnify and hold harmless Grantee, and the United State of America, their employees, agents and assigns from and against any and all claims, costs, expenses, fines, penalties, assessments, citations, personal injury or death, and the like arising from or out of the existence (actual or alleged) of any and all environmentally hazardous or toxic substances or materials whatsoever on or under the Property. 5.02A Environmental Warranty "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. "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 which may pose a present or potential hazard to human health or the environment. Grantor warrants that it is in compliance with and shall 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, non-compliance or alleged non- compliance with or any liability under any Environmental Law relating to the operations or conditions of the Property. Grantor further warrants that it has no actual knowledge of a release or threatened release of any Hazardous Materials on, at, beneath or from the Property, as such substances and wastes are defined by applicable Federal and State law. Moreover, Grantor hereby promises to defend and indemnify the Grantee and hold harmless and indemnify 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 Property, or arising from or connected with a violation of any Environmental Laws by Grantor or any other prior owner of the Property. Grantor's indemnification obligation shall not be affected by any authorizations provided by Grantee or the United States to Grantor with respect to the Property or any restoration activities carried out by Grantee at the Property; provided, however, that Grantee shall be responsible for any Hazardous Materials contributed after this date to the Property by Grantee. 5.03 Grounds Maintenance Requirement If Grantor leaves the Property open and does not engage in agricultural production for two (2) consecutive years, then Grantor shall implement a Natural Resources Conservation Plan (the "Plan") approved by Grantee, including the Land Preservation Committee, to maintain or restore the Property to the condition in which it existed on the date of this Easement, as evidenced by the documentation referred to in Section 0.05, in order to protect the environmental, natural, scenic and agricultural values of the Property. In the event Grantor fails to comply with the provisions of this section after reasonable written notice is given to Grantor by Grantee, then, in addition to all other remedies set forth herein, Grantee or its agents are hereby authorized to enter upon the Property to implement the Plan, and to recover the costs of such implementation from Grantor, as provided in Section 6.03. ARTICLE SIX GRANTEE'S RIGHTS 6.01 Entry and Inspection Grantee shall have the right to enter upon the Property at reasonable times, upon prior notice to Grantor, and in a manner that will not interfere with Grantor's quiet use and enjoyment of the Property, for the purpose of inspection to determine whether this 17 Easement and its purposes and provisions are being upheld. Representatives of the United States Department of Agriculture shall also have the right to enter the Property for monitoring conservation plan implementation, upon prior notice to Grantor and not more frequently than annually without Grantor's consent. Grantee shall not have the right to enter upon the Property for any other purposes, except as provided in Section 5.03 and 6.03, or to permit access upon the Property by the public. 6.02 Restoration In addition to Grantee's remedies under Section 5.03, Grantee shall have the right to require the Grantor to restore the Property to the condition required by this Easement and to enforce this right by any action or proceeding that Grantee may reasonably deem necessary. However, Grantor shall not be liable for any changes to the Property resulting from causes beyond the Grantor's control, including, without limitation, fire, flood, storm, earth movement, wind, weather or from any prudent action taken by the Grantor under emergency conditions to prevent, abate, or mitigate significant injury to persons or to the Property or crops, livestock or livestock products resulting from such causes. 6.03 Enforcement Rights of Grantee Grantor acknowledges and agrees that Grantee's remedies at law for any violation of this Easement may be inadequate. Therefore, in addition to, and not as a limitation of, any other rights of Grantee hereunder at law or in equity, in the event any breach, default or violation of any term, provision, covenant or obligation on Grantor's part to be observed or performed pursuant to this Easement is not cured by Grantor within ten (10) days' notice thereof by Grantee (which notice requirement is expressly waived by Grantor with respect to any such breach, default or violation which, in Grantee's reasonable judgment, requires immediate action to preserve and protect any of the agricultural values or otherwise to further the purposes of this Easement), Grantee shall have the right at Grantor's sole cost and expense and at Grantee's election: (i) To institute a suit to enjoin or cure such breach, default or violation by temporary and/or permanent injunction, (i~) To enter upon the Property and exercise reasonable efforts to terminate or cure such breach, default or violation and/or to cause the restoration of that portion of the Property affected by such breach, default or violation to the condition that existed prior thereto, or To enforce any term, provision, covenant or obligation in this Easement or to seek or enforce such other legal and/or equitable relief or remedies as Grantee deems necessary or desirable to ensure compliance with the terms, conditions, covenants, obligations and purposes of this Easement; provided, however, that any failure, delay or election to so act by Grantee shall not be deemed to be a waiver or a forfeiture of any right or available remedy on Grantee's part with respect to such breach, default, or violation or with respect to any other breach, default or violation of any term, condition, covenant or obligation under this Easement. Grantor shall pay either directly or by reimbursement to Grantee and/or to the United States of America, all reasonable attorneys' fees, court costs and other expenses incurred by Grantee or the United States of America (herein called "Legal Expenses") in connection with any proceedings under this Section, as approved by the Court. Under this Grant of Development Rights Easement, the United States is granted the right of enforcement in order to protect the public interest. The Secretary of the United States Department of Agriculture (the Secretary) or his or her assigns, on behalf of the United States, may exercise this right of enforcement under any authority available under State or Federal Law if the Town of Southold fails to enforce any of the terms of this instrument, as determined in the sole discretion of the Secretary. 6.04 Notice All notices required by this Easement must be written. Notices shall be delivered by hand or by registered or certified mail, return receipt requested, with sufficient prepaid postage affixed and with return receipts requested. Mailed notice to Grantor shall be addressed to Grantor's address as recited herein, or to such other address as Grantor may designate by notice in accordance with this Section 6.04. Mailed notice to Grantee shall be addressed to its principal office, recited herein, marked to the attention of the Supervisor and the Town Attorney, or to such other address as Grantee may designate by notice in accordance with this Section 6.04. Notice shall be deemed given and received as of the date of its manual delivery or three business days after the date of its mailing. Where notice is required to the United States of America or to the NRCS, such notice shall be delivered to U.S. Department of Agriculture, NRCS, c/o Commodity Credit Corporation, State Conservationist, The Galleries of Syracuse, 441 South Salina Street, Suite 354, Syracuse, New York 13202-2450. Notice to the NRCS shall be deemed notice to the United States of America. 6.05 No Waiver Grantee's exercise of one remedy or relief under this ARTICLE STX shall not have the effect of waiving or limiting any other remedy or relief, and the failure to exercise or delay in exercising any remedy shall not constitute a waiver of any other remedy or relief or the use of such other remedy or relief at any other time. 6.06 Extinquishment of Easement/Condemnation At the mutual request of Grantor and Grantee and United States of America, a court with jurisdiction may, if it determines that conditions surrounding the Property have changed so much that it becomes impossible to fulfill the Purpose of this Easement described in Section 0.03, extinguish or modify this Easement in accordance with applicable law. The mere cessation of farming on the Property shall not be construed to be grounds for extinguishment of this Easement. If at any time the Property or any portion thereof shall be taken or condemned by eminent domain approved in advance by the United States Department of Agriculture NRCS, by the Grantee or by any other governmental entity, then this Easement shall terminate with respect to the Property, or portions thereof so taken or condemned, and the Property shall not be subject to the limitations and restrictions of this Easement. :In such event, the Grantor, its successors or assigns, shall not be required to pay any penalties, but the value of the Property shall reflect the limitations of this Easement. Any condemnation award payable to the Grantor shall be in proportion to the value attributable to the residual agricultural value of the Property. Tf the condemnation is undertaken by an entity other than the Grantee, then the remaining portion of the condemnation award shall be payable to the Grantee in proportion to the value attributable to the 2o development rights transferred hereby, in accordance with Section 7.12 herein. ARTICLE SEVEN MISCELLANEOUS 7.01 Entire Understandina This Easement contains the entire understanding between its parties concerning its subject matter. Any prior agreement between the parties concerning its subject matter shall be merged into this Easement and superseded by it. 7.02 Amendment This Easement may be amended only with the written consent of Grantee and current Grantor and with the approval of the Secretary of the United States Department of Agriculture and in accordance with any applicable State and local laws. Any such amendment shall be consistent with the Purpose of this Easement and shall comply with the Town Code and any regulations promulgated thereunder. Any such amendment shall be duly recorded. This Easement is made with the intention that it shall qualify as a Conservation Easement in perpetuity under Internal Revenue Code §170(h). The parties agree to amend the provisions of this Easement if such amendment shall be necessary, to entitle Grantor to meet the requirements of §170(h). Any such amendment shall apply retroactively in the same manner as if such amendment or amendments had been set forth herein. 7.03 Alienation No property rights acquired by Grantee hereunder shall be alienated except pursuant to the provisions of Chapter 70 of the Town Code, or any successor chapter and other applicable laws upon the adoption of a local law authorizing the alienation of said rights and interest, following a public hearing and, thereafter, ratified by a mandatory referendum by the electors of the Town of Southold. No subsequent amendment of the provisions of the Town Code shall alter 2] the limitations placed upon the alienation of those property rights or interests which were acquired by the Town prior to any such amendment. The United States of America shall also consent to any such alienation. In addition to the limitations set forth above, Grantee shall have the right, subject to the provisions of Section 7.11 (Contingent Rights of United States of America) herein, to transfer all or part of this Easement to any public agency, or private non-governmental organization, that at the time of transfer is a "qualified organization" under §170(h) of the Internal Revenue Code, provided that transferee expressly agrees to assume the responsibility imposed on the Grantee by this Easement. Any easement transfer must be approved by the Grantor or any subsequent owner, and the United States Department of Agriculture, NRCS. If the Grantee ever ceases to exist, a court of competent jurisdiction may transfer this Easement to another qualified public agency that agrees to assume the responsibilities imposed by this Easement. The United States Department of Agriculture, NRCS, will be notified in writing in advance of such transfer. The NRCS State Office must approve the choice of any new non-governmental organization in advance of any transfer of this Easement. 7.04 Severability Any provision of this Easement restricting Grantor's activities, which is determined to be invalid or unenforceable by a court, shall not be invalidated. Instead, that provision shall be reduced or limited to whatever extent that court determines will make it enforceable and effective. Any other provision of this Easement that is determined to be invalid or unenforceable by a court shall be severed from the other provisions, which shall remain enforceable and effective. 7.05 Governing Law New York law applicable to deeds to and easements on land located within New York shall govern this Easement in all respects, including validity, construction, interpretation, breach, violation and performance. 7.06 Interpretation 22 Regardless of any contrary rule of construction, no provision of this Easement shall be construed in favor of one of the parties because it was drafted by the other party's attorney. No alleged ambiguity in this Easement shall be construed against the party whose attorney drafted it. Tf any provision of this Easement is ambiguous or shall be subject to two or more interpretations, one of which would render that provision invalid, then that provision shall be given such interpretation as would render it valid and be consistent with the purposes of this Easement. Any rule of strict construction designed to limit the breadth of the restrictions on use of the Property shall not apply in the construction or interpretation of this Easement, and this Easement shall be interpreted broadly to effect the purposes of this Easement as intended by the parties. The parties intend that this Easement, which is by nature and character primarily negative in that Grantor has restricted and limited his right to use the Property, except as otherwise recited herein, be construed at all times and by all parties to effectuate its purposes. 7.07 Public Access Nothing contained in this Easement grants, nor shall it be interpreted to grant, to the public, any right to enter upon the Property, or to use images of the Property. Grantee may use images of the Property only for non-commercial reporting of this Easement. 7.08 Warranties The warranties and representations made by the parties in this Easement shall survive its execution. 7.09 Recording Grantee shall record this Easement in the land records of the office of the Clerk of the County of Suffolk, State of New York. 7.10 Headings The headings, titles and subtitles herein have been inserted solely for convenient reference, and shall be ignored in its construction. 23 7.11 Continqent Rights of the United States of America l~n the event that Grantee fails to enforce any of the terms of this Easement, as determined in the sole discretion of the Secretary of the U.S. Department of Agriculture, the said Secretary of Agriculture and his or her successor and assigns shall have the right to enforce the terms of this Easement through any and all authorities available under Federal or State law. Tn the event that Grantee attempts to terminate, transfer or otherwise divest itself of any rights, title or interest of this Easement without the prior consent of said Secretary and without payment of consideration to the United States as provided herein, then, at the option of such Secretary, all right, title and interest in this Easement shall become vested in the United States of America. 7.12 Proceeds The grant of this Easement gives rise to a property right, immediately vested in Grantee, which, for purposes of calculating proceeds from a sale or other disposition of the Property as contemplated under Section 6.06 (Extinguishment of Easement/Condemnation), shall have a value equal to a percentage of the value of the Property unencumbered by this Easement (the "Proportionate Share"). The Proportionate Share is determined by dividing the value of this Easement, calculated as of the date hereof, by the unencumbered value of the Property, as reflected in an appraisal obtained by Grantee dated May 18, 2010, in which the effective date of valuation is February 11, 2010. The Proportionate Share is 30.53 percent. The Proportionate Share shall remain constant (subject to reasonable adjustment to the extent permissible under Section 170(h) of the Tnternal Revenue Code for any improvements which may hereafter be made on the Property). If any part or all of this Easement is extinguished pursuant to Section 6.06, the proportional shares of the Grantee and the United States of America are 58.93 percent, and 41.07 percent, respectively, 24 representing the proportion each party contributed to the purchase price of the easement. :IN W:ITNESS WHEREOF, Grantor has executed and delivered and Grantee has accepted and received this Deed of Easement on the day and year set forth above. ACKNOWLEDGED AND ACCEPTED: ZIP PECONIC WELLS LLC, Grantor BY'~ Z~rg, Managing Member ACKNOWLEDGED AND ACCEPTED: THE UNTTES STATES OF AMERTCA BY: ~Conservationist TOWN OF S.~HOLD, Grantee BY: ~ Scott A. Russell Supervisor Acceptance of Property :Interest by the Natural Resources Conservation Service 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 th~e United States of America. A~t~'~ ~F YBO 0 ze r'---F~,- ,~ Stli~of New YoN(L) Count-~f /2/f/¢Zc-Cz~/:~ ), ss: 25 On the ~' day of July in the year 2010 before me, the undersigned, personally appeared Astor F, Boozer, personally known to me or proved to me on the basi~of satisfactory evidence to be the individual (s) whose name~subscribed to the within instrument and acJ~nowledg(~d to me that~t~e_~she/they exe~cuted the same in (f~)her/their capacity (ies~/and that b~her/their signature(s) on the ~nstr~'' ument, the individual(s), or the person upon behalf of which the~Nbl~'/~ ~~~~d, executed the instrument. Nota Public . of M d on, Sta e of N.Y [ ffiCe' Or6dividual taking acknowledgement / YORK) COU .... ) SS: On this~O day of ~0 k~ in the year 2010 before me, the undersigned, personally appeared Lloyd P. Zuckerberg personally known to me or proved to me on the basis of satisfactory evidence to be the individua~whose name~ is ~subsccibed to the within instrument and acknowledged to me that he/shg/they executed the same in his/~ capacity~ and that by his/~ signature~on the instrument, the individual~or the person upon behalf of which the individual~acted, executed the instrument. ~ot&ry Public (/ ..~v. STATE OF NEW YORK) COUN~ OF SUFFOLK) SS: On this~'~-- day of ~,~rin the year 2010 before me, the undersigned, personally appeared Scott A. Russell, personally known to me or proved to me on the basis of satisfactory evidence to be the individual(s) whose name(s) is (are) subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their capacity(les), and that by his/her/their signature(s) on the instrument, the individual(s), or the person upon behalf of which the individual(s) acted, executed the instrument. Notary Public PATRICIA L FALLOf~ Notary Public, State Of NewYod[ No. 01FA4950146 Qua f ed n Suffolk County Commission Expires Apri 24, 26 title insurance company NEW YORK METRO 800-853-4803 212-922-1593 fax stewartnewyork.com SCHEDULE A - DESCRIPTION Title No.: ST0-801136 AMENDED 7/28/2010 TOTAL AGRICULTURAL EASEMENT AREA ALL that certain plot, piece or parcel of land, situate, lying and being in the Town of Southold, at Peconic, County of Suffolk and State of New York, as shown on a survey made by Young & Young, dated 2/1/2010 and last revised 7/19/2010 for the Town of S outhold known as Lot 3 of Property of Zip Peeonic Wells LLC; said lot being more particularly bounded and described as follows: BEGINNING at the coroer formed by the intersection of the southeasterly side of Main Road (N.Y.S. Rte. 25) and the southwesterly side of Wells Road; RUNNING THENCE from said beginning along the southwesterly side of Wells Road the following two (2) courses and distances: (1) (2) South 33 degrees 18 minutes 25 seconds East, 871.83 feet; South 08 degrees 03 minutes 45 seconds East, 547.75 feet; THENCE South 81 degrees 56 minutes 15 seconds West, 56.00 feet; THENCE South 08 degrees 03 minutes 45 seconds East, 399.92 feet to land now or formerly of Zip Peconic Wells LLC; THENCE South 59 degrees 03 minutes 45 seconds West, 476.06 feet to land now or formerly of Pelligrini Peconic LLC; THENCE North 34 degrees 40 minutes 26 seconds West, 1,329.59 feet to a monument set on the southerly side of Main Road (N.Y.S. Rte. 25); THENCE from said monument along the southeasterly side of Main Road (N.Y.S. Rte. 25) the following two (2) courses and distances: (1) (2) North 35 degrees 20 minutes 45 seconds East, 820.12 feet; North 40 degrees 28 minutes 45 seconds East, 206.55 feet to the corner first above mentioned, the point or place of BEGINNING. SCHEDULE B - DESCRIPTION Title No.: ST0-801136 AGRICULTURAL STRUCTURE AREA DESCRIPTION - ALL that certain plot, piece or parcel of land, situate, lying and being in the Town of Southold, at Peconic, County of Suffolk and State of New York, as shown on a survey made by Young & Young, dated 2/1/2010 and last revised 7/19/2010 for the Town of Southold known as part of Lot 3 of Property of Zip Peconic Wells LLC; said part of lot being more particularly bounded and described as follows: BEGINNING at a point on the southeasterly side of Main Road (N.Y.S. Rte. 25) distant the following two (2) courses and distances southwesterly from the comer formed by the intersection of the southeasterly side of Main Rood (N.Y.S. Rte. 25) and the southwesterly side of Wells Road: (1) (2) South 40 degrees 28 minutes 45 seconds West, 206.55 feet; South 35 degrees 20 minutes 45 seconds West, 607.31 feet to the true point of beginning; RUNNING THENCE South 34 degrees 40 minutes 26 seconds East, 254.16 feet; THENCE South 55 degrees 19 minutes 34 seconds West, 200.00 feet to land now or formerly of Pellegrini Peconic LLC; THENCE North 34 degrees 40 minutes 26 seconds West, 181.44 feet to a monument set on the southeasterly side of Main Road (N.Y.S. Rte. 25); THENCE from said monument along said southeasterly side of Main Road (N.Y.S. Rte. 25) North 35 degrees 20 minutes 45 seconds East, 212.81 feet to the point or place of BEGINNING. 2 TIE-IN ALTA Owner's Policy (6-17-06) POLICY OF TITLE INSURANCE ISSUED BY Any noUce of claim and any other notice or statement In writing required to be given the Company under this Policy must be given to the Company st the addre.~ shown In Section 18 of the Conditions. COVERED RISKS SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE S AND THE CONDITIONS, STEWART TI'R.E INSURANCE COMPANY, a New York corporatlno, (tl~ "Company") insures, as of Date of Policy and, ~ the extent stated in Covered Risks 9 and 10, after Date of Policy, against loss or damage, not excesding the Amount of Insurance, sustained or incurred by the insured by reason of: 1. Tiite being vested other than as stated in Schedule A. 2. Any defect in or lien or encumbrance on the Tdfe. This Covered Risk includes but is not limited to insurance agathst loss from (a) A defect in the Title caused by (i) forgery, fraud, undue influence, duress, incompetency, incapacity, or impersonation; (ii) failure of any pamoa or Entity to have autbd~zed a transfer or conveyance; (iii)a document affecting T'rile not pmpariy created, executed, witnessed, sealed, acknowledged, notarized, or delivered; (iv) failure to perform those acts necessary to create a document by electronic means authorized by law (v) a documant executed under a faisified, expirod, or otherwtse invaiid power of attorney (vi) a document not properly filed, recorded, or indexed in the Public Records including failure to pedorm those acts by aiectmnic means authorized by law; or (vii) a defective judicial or adminlab'ative p~ceeding. (b} The lien of real estate taxes or assessments imposed on the Title by a govemmentai authority due or payable, but unpaid. (c) Any encroachment, encumbrance, violation, variation, or adverse cimumstence affecting the Title that would be disclosed by an accurate and complete land sun/ey of the Land. Ti3e t~/m 'encroachmanr' includes encroechmants of existing improvements located on the Land onto adjoining land, and encroachments onto the Land of existing improvements located on adjoining land. 3. Unma~f~t~fe Title. 4. No right of access to and h'om the Land. 5. The violation or enforcement of any law, ordinance, pan'nit, or governmental regulation (including those relating to building and zoning) restricting, raguts~ng, prohibiting, or relating to (a) the occupancy, use, or enjoyment of the Land; (b) the character, dimensions, or location of any improvement erected on the Land; (c) the subdivision of land; or (d) environmental protection it a notice, describing any part of the Land, is recorded in the Public Records setting forth the violation or intention to enforce, but only to the extent of ~e violation or enforcement r~en'ed to in that notice. 6. An enfomement action based on the exemtse of a govemmantel police power not covered by Covered Risk 5 if a notice of the enforcement aciton, describing any part of the Land, is recorded in the Public Records, but only to the extent of the enforcement referred to in that notice. 7. The exercise of the rights of eminent domain if a notice of the exercise, describing any part of the Land, is recorded in the Public Rec~ds. 8. Any taking by a govemmentai body that has occurred and is binding on the Hghts of a porchase~ for vaiue without Knowiedge. Countersigned: Stewart Title Insurance Company New York, New York s~,~ No. O-8911-544232 If yoU want tntormatJon about coverage or need as~stance to resolve complaints, please call our toll free number: 1 ~00-433-0014. if you make a claim under your pnticy, you must furnish written notice in accordance '~th Section 3 of the Conditions. Visit our Word-Wide Web site at httD ;//Www. Stewa r~NewyQrk.c,gm File NO.: ST0-801136 ALTA OWNER'S POLICY (6417106) SCHEDULE A File No.: ST0-801136 Amount of Insurance: Date of Policy: 1. Name of Insured: Town of Southold $2,410,535.80 August 3, 2010 Policy No.: O-8911-544232 Premium: $9,672.00 2. The estate or interest in the Land that is insured by this policy is: Development Rights Easement 3. Title is vested in: Development Rights Easement Agreement between ZIP Peconic WelIs,LLC dated 8/3/2010 to be duly recorded in the Suffolk County Clerk' s/Registers Office. 4. The Land referred to in this policy is described as follows: See Schedule A Description, attached hereto and made a part hereof. Section: 086.00 Block: 01.00 Lot: 010.009 _stewar title insurance company NEW YORK METRO 80O-8,53-48O3 212-922~1593 fax stewartnewyork.com SCHEDULE A - DESCRIPTION Title No.: ST0-801136 AMENDED 7/28/2010 TOTAL AGRICULTURAL F-~$EME~ AREA ALL that certain plot, piece or parcel of land, situate, lying and being in the Town of Southold, at Peconic, County of Suffolk and State of New York, as shown on a survey made by Young & Young, dated 2/1/2010 and last revised 7119/2010 for the Town of Southold known as Lot 3 of Property of Zip Peconic Wells LLC; said lot being more pax'dcularly bounded and described as follows: BEGINNING at the comer formed by the intersection of the southeasterly side of Main Road (N.Y.S. Rte. 25) and the southwesterly side of Wells Road; RUNNING THENCE from said be~nniqg aiORg the southwesterly side of Wells Road the following two (2) courses and distances: (l) (2) South 33 degrees 18 minutes 25 seconds East, 871.83 feet; South 08 degrees 03 minutes 45 seconds East, 547.75 feet; THENCE South 81 degrees 56 minutes 15 seconds West, 56.00 feet; THENCE South 08 degrees 03 minutes 45 seconds East, 399.92 feet to land now or formerly of Zip Peconic Wells LLC; THENCE South 59 degrees 03 minutes 45 seconds West, 476.06 feet to land now or formerly of Pelligrini Peconic LLC; THENCE North 34 degrees 40 minutes 26 seconds West, 1,329.59 feet to a monument set on the southerly side of Main Road (N.Y.S. Rte. 25); THENCE from said monument along the southeasterly side of Main Road (N.Y.S. Rte. 25) the following two (2) courses and distances: (1) (2) North 35 degrees 20 minutes 45 seconds East, 820.12 feet; North 40 degrees 28 minutes 45 seconds East, 206.55 feet to the comer fa'st above mentioned, the point or place of BEGINNING. SCHEDULE B - DESCRIPTION Title No.: ST0-801136 AGRICULTURAL STRUCTURE AREA DESCRIPTION - Al .I, that certain plot, piece or pan:el of land, situate, lying and being in the Town of Southold, at Peconie, County of Suffolk and State of New York, as shown on a survey made by Young & Young, dated 2/1/2010 and last revised 7/19/2010 for the Town of Southold known as part of Lot 3 of Property of Zip Peconic Wells LLC; said part of lot being more particularly bounded and described as follows: BEGINNING at a point on the southeasterly side of Main Road (N.Y.S. Rte. 25) distant the following two (2) courses and distances southwesterly from the comer formed by the intersection of the southeasterly side of Main Road (N.Y.S. Rte. 25) and the southwesterly side of Wells Road: (1) South 40 degrees 28 minutes 45 seconds West, 206.55 feet; (2) South 35 degrees 20 minutes 45 seconds West, 607.31 feet to the true point of beginning; RUNNING THENCE South 34 degrees 40 minutes 26 seconds East, 254.16 feet; THENCE South 55 degrees 19 minutes 34 seconds West, 200.00 feet to land now or formerly of Pellegrini Peconic LLC; THENCE North 34 degrees 40 minutes 26 seconds West, 181.44 feet to a monument set on the southeasterly side of Main Road (N.Y.S. Rte. 25); THENCE from said monument along said southeasterly side of Main Road (N.Y.S. Rte. 25) North 35 degrees 20 minutes 45 seconds East, 212.81 feet to the point or place of BEGINNING. ALTA OWNER'S POLICY (6/17106) SCHEDULE B PART I File No.: ST0-801136 Policy No.: O-8911-544232 This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) that arise by reason of: 3. 4. 5. Survey made by Young & Young, dated 2/1/2010 and last dated 7/19/2010, shows subject premises as cultivated land. (a) Irrigation well and pump and line of cultivation shown in southerly part of premises. (b) Brush and wood posts vary with southwesterly line. (c) Driveway up to 3.1 feet east of part of southwesterly line. (d) Granite mile marker referenced at northwesterly line. (e) Culvert located at southwesterly line. Rights of tenants or parties in possession, if any. Policy will except water and sewer charges not entered and/or water and sewer charges entered subsequent to date of last actual reading. Policy will except the terms and conditions of the grant Development Rights Easement to be executed by the grantor(s) and the Town of Southold. Boundary Line Agreement made between Pelleg~ini Peconic LLC and ZIP Peconic Wells, LLC to be duly recorded in the Suffolk County Clerk's/Registers Office. STEWART TITLE INSURANCE COMPANY HEREIN CALLED THE COMPANY STANDARD NEW YORK ENDORSEMENT (Owner's Policy) Title No.: ST0-801136 Date of Issue: August 3~ 2010 ATTACHED TO AND MADE A PART OF POLICY NUMBER O-8911-544232 1. The following is added as a Covered Risk: "11. Any statutory lien for services, labor or materials furnished prior to the date hereof, and which has now gained or which may hereafter gain priority over the estate or interest of the insured as shown in Schedule A of this policy." 2. Exclusion Number 5 is deleted, and the following is substituted: Any lien on the Title for real estate taxes, assessments, water charges or sewer rents imposed by governmental authority and created or attaching between Date of Policy and the date of recording of the deed or other instrument of transfer in the Public Records that vests Tide as Shown in Schedule A. This endorsement is issued as part of the policy. Except as it expressly states, it does not (i) modify any of the terms and provisions of the policy, (ii) modify any prior endorsements, (iii) extend the Date of Policy, or (iv) increase the Amount of Insurance. To the extent a provision of the policy or a previous endorsement is inconsistent with an express provision of this endorsement, this endorsement controls. Otherwise, this endorsement is subject to all of the terms and provisions of the policy and of any prior endorsements. DATED: August 3, 2010 Countersigned By: Authorized Office or Agent STEWART TITLE INSURANCE COMPAI~Y Stewart Title Insurance Company 300 East 42nd St., 10th FI New York, New York 10017 STANDARD NEW YORK ENDORSEMENT (11/1/08) FOR USE WITH ALTA OWNER'S POLICY (6-17-06) COVERED RISKS (Continued) Title being vested other than as stated in Schedule A or being defective ia) as a result of the avoidance in who~ or in part, or from a court order (i) to be timely, or (ii) to impart notice of its existence to a purchaser for value or to a providing an altemative remedy, of a transfer of all or any part of the Judgment or lien creditor. title to or any intarast in the Land occurriag pdor to the tranesction 10. AnydetastlnorlianorancumbranceontheTaleorothermattertnaluded vesting Title as shown in Schedule A because that pda3r transfer in Covered Risks 1 through 9 that has been created or attached or has constituted a fraudulent or preferential transfer under federal been filed or recorded in the Public Reoords subesquent to Date of Policy bankruptcy, state insolvency, or similar cmclitors' rights laws; or and prior to the recording of the deed or other thstroment of transfer in the because the instrument of transfer veshng T~le as shown in Public Rsuoofs that vests T'~le as shown in Schedule A. Schedule A constitutes a prefe~renflai transfer under federal Ti~ Company ~11 also pay the costs, attorneys' fees, and expenses incanred in bankruptcy, state insolvency, or similar creditors' rights laws by defense of any matter insured against by this Pdilcy, but only to the extent reason of the failure of its recording in the Public Record~ provided tn the Conditions. EXCLU~ONS FROM COVERAGE The following matters ere expressly excluded from the coverage of thio pcticy, and the Company wti~ not pay loss or damage, costs, atton3eys' fees, or expenses that shas by reason of; 1. ia) Any taw, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to ii] the occupancy, uso, or enjoyment of the Land; (ii) the character, dimensions, or location of any improvement erected on the Land; (iii) the subdiviolan of land; or (iv) environmental protection; or the effect of any violation of these ia*s, ordinances, or governmental regulations. This Exciualon 1 ia) does not modify or limit the coverage provided under Covered Rlek 5. (b) Any govemmontsl police power. Thio Exclusio~ lib) does not modify or limit the coverage pmvidod under Covered Risk 6. 2. 2. Rights of eminent domain. This Exclusion does not modify er limit the 5. coverage provided under Covered Risk 7 or 8. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed, or agreed to by the Insured C~aimant; (b] not Known to the Company, not recorded in the Public Records at Date of Psticy, Put Known to the Insured Claimant and not disuiosed In writing to the company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; (c) resulting in no loss or damage to the Insured Claimant; id) attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under covered Risk 9 and 10); or (e) rosu[fing in less or damage that would not have been sustained If the Insured Claimant had paid value for the Title. Any r.~alm, by mason of the operation of federal bankruptcy, state insolvency, or simtler creditors' rights laws, that the transaction vesting the Title as show~ in Schedule A, is ia) a fraudulent conveyance or fraudulent transfer; or (b) a preferential transfer for any reason not stated in Covered Riok 9 of Any lien on the Title for real estate taxes or assessments imposed by govemmontal authority and created or attaching between Date of Policy and the date of reoordlng of tho deed or other instrument of transfer in the Public Records that vests Tibe as shown in Schedule A. CONDmON~ DEfiNITION OF TERMS The following terms when used in thio policy mean: ia) 'Amount of Insurance': The amcont stated in Schedule may be Incroasud or decreased by endorsement to this policy, increased by Seotio~ 8(b), or decreased by Sections 10 and 11 of ~ Conditions. (b) 'Date of Pallcy~: The date designated as 'Date of Policy' in Schedule A. (c) 'Entity': A corporation, partnership, trust, limited liability company, or other simlier lagai entity. (d) 'Insured': The Insured named in Schedule A. (i) The tanm 'Insured' also includas (A) successors to the Tale of tho Insured by operation of law as distinguished from purchase, including heirs, devisees, survivors, personal representatives, or next of kin; (B) successors to an insured by dissolution, merger, consolidation, dis~buflon, or reorganization; (C) sucoesas~ to an Insured by its conversion to another kind of Entity; (D} a grantee of an Insurod under a deed dalivered without payment of actual vaiuable consideration conveying the Title (1) if the stock, shares, memberships, or o~er egeity Interests of the grantee are wholly-ownsd by the named Insured, (2) if the grantee ~holly owns the named Insured, (3) if the grantee is whctly-owoed by an affiliated Entity of the named Insured, provided the affiliatad Enflfy and the named Insured are both w~olly-ownod bythe same pemon or EntKy, or (4) if the grantee is a trustee er beneficiary of a trust created by a written Instrument astabliohed by Insured named in Schedule A for estate planning Purlx)aes. (It) With regard to (A), (B), (C), and iD) resen, ing, however, ail rights and defenses as to any successor that the Company would have had against any predecessor Insured. (e) "Insured Claimant': An Insured claiming loss or damage. if} 'Knowledge' o~ 'Known': Actual knowledge, not constructive knowledge or notice that may be imputed to an Insurod by reason of the Public Records or any other records that impart constructive notice of matters affeoting the Title. (g) 'Land': The land described in Schedule A, ~ affixed improvements that by law constitute real p,,operty. The term · Land' does not include any property beyond the lices of the area described in Schedule A, nor any dght, title, interest, estate, or easement in abutting streets, roa~s, avenues, alleys, tsnas, ~ays, or watemrays, but this does not modify or limit the extent that a right of access to and from the Land is insured by this policy. ih) "Mortgage': Mortgage, deed of trust, trust deed, or other security instrument, including one evidenced by alectrenlc means authorized by law. (I) 'Public Records": Records established under state statutes at Date of Policy for the putpoes of imparting constructive notice of matters relating to real property to purchasers for value and without Knowledge. Wi~t respect to Covered Risk 5id), "Public Records" shstl also include environmental protection liens filed in ~e records of the clerk of the United States District Court for (j) 'Title': The estate or interest described in Schedule A. (k) "Unmarketable Title': Title affected by an allaged or apparent matter that would permit a prospective purchaser or lessee of the Title or lender on the Title to be roleased from the obligation to purchase, lease, or lend if there is a conf0actual condition requiring the delivery of marketable fltie. I Page 2 Sedal No.: O-8911-544232 II I File No.: ST0-801136 CONOmONS (Continued) CONTINUATION OF INSURANCE The coverage of this policy shall continue in force as of Date of Policy in favor of an Insured, but only as long as the Insured retains an estate or interest in the Land, or holds an obllgaUon secured by a purchase money Mortgage given by a purchaser from the Insured, or only co long as the Insured shall have liability by reason of warranhes in any transfer or conveyance of the Title. This policy shall not continue in force in favor of any purchaser from the Insured of althar (i) an estate or interest in the Land, or (ii) an obligation secured by a purchase money Mortgage given to the Insured. NOllCE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT The Insured shall notify the Company promptly in va'[ting (i) in case of any litigation es set forth in Section 5(a) of these Conditions, (ii) in case Knowledge shall come to an Insured hereunder of any claim of title or interest that is adverse to the Tiffe, as insured, and that might cause ~as or damage for which the Company may be liable by virtue of this policy, or (iii) if the Title, as insured, is rejected as Unmarketable'Rtie. If the Company is prejudiced by the feiture of the Insured Claimant to provide prompt notice, the Company's liability to the Insured Claimant under the policy shall be reduced to the extent of the prejudice. PROOF OF LOSS In the event the Company is unable to determine the amount of lass or damage, the Company may, at its option, require as a condition of payment that the Insured Claimant furnish a signed proof of loss. The proof of loss must describe the defect, lien, encumtsance, or other matter insured against by this policy that constitutes the basis of loss or damage and shall state, to the extent possible, the basle of calculating the amount of the loss or damage. DEFENSE AND PROSECUTION OF ACTIONS (a) Upon written request by the Insured, and subject to the options contained in Section 7 of these Conditions, the Company, at its own cost and without unreasonable delay, shall provide for the defense of an Insured in litigation in which any third parry asserts a claim covered by this policy adverse to the Insured, This obligation is limited to only those stated causes of action ailagiag matters insured against by this policy. The Company shall have the right to astsut counsel of its choice (subject to the right of the Insured to object for reasonable cause) to represent the Insured es to those stated causes of action. It shall not pa liable for and will not pay the fees of any other co~ns~. The Company will not pay any fees, costs, or expenses incurred by the Insured in Um defense of those causes of action that allege matters not insured against by this policy. (b) The Co~npany shall have the right, in addition to the OflUons contained in SanUon 7 of these Conditions, at Its o~ cost, to institute and prosecute any action or proceeding or to do any other act that in Its o~nlon may be necessary or desirable to astablish the T'~IS, as insured, or to prevent or reduce ices or damage ts the Insursd. The Company may take any adpmpriste enrico under the trams of this policy, whether or not it shall be liable to the Insured. The exercise of these rights shall not be an admission of liability or waiver of any provision of this policy. If the Company exercises its rights under this subsection, it must do so diligently. (c) Whenever the Company brings an action or asserts a defense as required or permitted by this policy, the Company may pursue the litigation to a final determination by a court of competent joriedicUon, and it expressly reserves the right, in its sole discretion, to appaai any adverse judgment or order. DUTY OF INSURED CLAIMANT TO COOPERATE (s) In ail cases where this policy permits or requires the Company to prosecute or provide for the defense of any a~on or proceeding and any appeals, the lasured shall secure to the Company the dght ts as prosecute or provide defense tn the action or proceeding, including the right to use, at its option, the name of the Insured for this puq~ase. Whenever requested by em Company, the Insured, at the Company's expense, shall g;ve the Company all reasoneble aid (D in securing evidence, (b) obtaining witnesses, prosecuting or defending the esUon or proceeding, or effec~ng sefflemant, and (ii) in any other lawful act that in the opinidn of the Company may be neceasmy or desirable to establish the Title or any other matter as insured, if the Company ia preJudicert by the falturo of the Insured to /umtsh the required cooperation, the Company's obligations to the Insured under the policy shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation, with regard to the matter or matters requi~ing such cooperation. The Company may roasonably require the Insured claimant to submit to examinetlon under oath by any authorized reprasentative of the Company and to produne for examination, inspection, and copying, at such reasonable times and places as may pa designated by the authorized representative of the Company, ali records, in whatever medium maintained, indiuding books, ledgers, checks, memoranda, corrasgendanne, reports, e-malls, disks, tapes, and videos whethar bearing a date before or after Date of Pblicy, that reasonably partain to the less or damage. Further, if requested by any authedzed representative of the Company, the insured Claimant shall grant its permission, in writing, for any authorized representative of the Company to examine, inspact, and copy all of these records in the custody or control of a third party that roasonab~y pertain to the loss or damage. Ail information designated as cohtidenflai by the Insured Claimant provided to the Company pursuant to this Section shall not be disctased to others unless, in the reasonable judgment of the Cornpeny, it is neseasa~y in the administredon of the blaim. Failure of the theurert Ctsimant to submit for examination under oath, produce any reasonably requested information, or grant pennisaion to secure reasonably necessary information from third parties as required tn this subsection, unless prohibited by law or governmental regulation, shall terminate any liability of the Company under this pofiny es to that claim. OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS; TERMINATION OF LIABILITY In case of a claim under this policy, the Company shall have the following edditional options: (a} TO Pay or Tender Payment of the Amount of Insurance. To pay or tender payment of the Amount of Insurance under this paticy together with any costs, attorneys' fees, and expenses incurred by the Insured claimant that ~re authorized by the Company up to the time of payment or [~xler of payment and that ~he Company is oUigated to pay. Upon the exercise by the Company of this option, all liability end obligations of the Company to the Insured under this policy, other than to make the payment required in this subsection, shall tennlnata, including any liability or obligation to defend, prosecute, or continue any litigation. (b) To Pay or Othanatse Settfe With Parties Other Then the Insured or With the Insured claimant. (i) To pay or otherwise settle with other parties for or tn the name of an Insuro0 Claimant any claim insured against under this policy. In abditlon, the Company will bay any costs, attorneys' fees, and expenses incurred by the insured Claimant that were authorized by the Company up to the time of payment and that the Company is obligated to pay; or (ii) TO pay or othenvlas esUfe with the Insured Claimant the loas or damage provided for under this policy, together with any costs, attorneys' fees, and expenses incurred by the Insured Claimant that were authorized by the Company up to the time of payment and that the Company is obligated to pay. Upon the exercise by the Company of either of the options provided for in subsections (b)(i) or (ii}, the Company's or damage, other than the payments required to be mede, shall terminate, including any liability or obligation to defend, pmseouta, or continue any litigation. File No.: ST0-801136 CONDITIONS (Continued) 8. DETERMINATION AND EXTENT OF LIABILITY This policy is a contract of indemn~ against actual monetary loss or damage sustained or incurred by the Insured Claimant who has suffered loss or damage by reason of matters insured against by this policy. (a) The extent of liabil~J of the Company for loss or damage under ~his policy shall not exceed the lesser of (i) the Amount of Insurance; or (ii) the difference between the value of the Tcle as insured and the vaice of the Titfo subject to the dsk insured against by this policy, (b) If the Company pursues its rights under Section 5 of these CondilJons and is unsuccessful in establishing the Title, as (i) the Amount of Insurance shall be increased by 10%, and (ii) the Insured Claimant shall have the right to have the loss or damage determined either as of the data the claim was made by the thsured Claimant or as of the date it is settled and paid, (c) In eddtirin to the extent of liabili[y under {a) and (b), the Company will also pay those costs, at~rnsys' foes, and expenses incurred in accordance with Sections 5 and 7 of these Conditions, g. UMITATION OF UABIMTY (a) If the Company establishes the Tcle, or removes the alleged defect, lien, or encumbrance, or cures the lack of a dght of Tcle, alt as insured, in a reasonably diligent manner by any method, including litigation and the comptstlon of any appeals, it shall have fully performed its obligations with respect ta that matter and shall not be liable far any loss or damage caused to the Insured. (b) In the event of any litigation, including litigation by the Company or wfth the Company's consent, the Company shall have no liability for riss or damage until them has been a final dstormirmtion by a court of competent juitsdloflon, and disposition of ail appeals, adverse to the Title, as insured. (c) The Company shall not be liable for loss or damage to the insured for liability voluntarily assumed by the Insured in settling any claim or suit without ~ prier written consent of the Company. 10. REDUCTION OF INSURAflCE; REDUCTION OR TERMINATION OF UAmlJl~ All payments under this policy, except payments made for costs, by the amount of the payment, 11. UABlUTY NONCUMULATIVE The Amount of Insurance shall be reduced by any amcoht the Company pays under any policy insudng a Mortgage to which exception is taken in Schedule B or to which the Insured has agreed, assumed, or taken subject, or which is executed by an Insured after Date of Policy and which is a charge or lien on the 31tie, and the amount so paid &hail be deemed a payment to the Insured under this 12. PAYMENT OF LOS~ When liabtitiy and the extent of loss or damage have been definitely fixed In accordance with these Conditions, the payment shalr be mede within 30 days. 13. RIGHTS OF RECOVERY UPON PAYMENT OR SE'R'LEMENT (a) Whenever the Company shall have settled and paid a claim under this policy, ti shell be subrogated and entitled to the dghts of the Insured Claimant in ftm Title ~ all other rights and remedies in respect to the cJaJm that the Insured Claimant has against any parson or property, to the extent of the amount of any loss, costs, attorneys' fees, and expenses paid by the Company. If requested by the Company, the Insured Claimant &hail execute documents to evidence the transfer to the Company of these tights and remedies. The Insured C4aimant shall permit the company to sue, compromise, or set'de in the name of the Insured Claimant and to use the name of the Insured Claimant in any transaction or tltigation invclving these rights and remedies. If a payment on account of a claim does not fully cover the loss of the Insured Claimant, the Company shall defer the exercise of its right to recover until after the Insured Claimant shall have recovered its loss. (b) The Company's right of sub~ngatlon includes the rights of the Insured to indemnities, guaranties, other policies of insurance, or bends, notwithstanding any terms or conditions contained in those instruments that address subrogation dghts, 14. ARBITRATION Either the Company or the Insured may demand that the claim or controversy shell be submitted to arbitration pursuant to the Title Insurance ,N'oltration Ruiss of the American Land 1'tile Association ('Rules'). Except as provided in the Rules, there shall pa no jofnder or consolidation with claims or controversies of other parsons. Arb~able matters may inoludo, but me not limited to, any controversy or claim between the Company and the Insured ansing out of or relating to this policy, any service in connection with its issuance or the breach of a policy prevision, or to any other controversy or claim a~sthg out of the transaction giving rise to this policy. Afl arbitrable matters when the Amount of Insurance is $2,000,000 or less shall be aYailmtsd at the option of eider the Company or the Insured. All arbitmbfo matters when the Amount of Insurance is in excess of $2,000,000 shall be arbitrated only when agreed to by beth the Company and the Insured. Afcltraiton pursuant to this policy and under the Rules shall pa Unding upon the parties. Judgment upon the award rendered by the ~tor(s) may be entared in any court of competent judsdlotrin. 15. UABILrry MMITED TO THIS POUCY; POLICY ENTIRE CONTRACT (a) 'mis policy together with alt endorsements, if any, attached to it by the Company is the entire policy and contract between the Insured and the Company. In interpreting any provision of this policy, this policy shall be construed as a whole. (b) Any claim of loss or damage that arises oat of the sfatos of the Title or by any action aseening such claim shall be restricted to this policy. (c) Any amendment of or endorsement to this palk.-y must be in writing and authenticated by an authorized parson, or expressly incorporated by Scheduts A of this policy. (d) Each endorsement to this policy issued at any time is made a part of this policy and is subject to ail of its terms and pruvJaions. Except as the endorsement expressly states, it does not (i) modify any of the terms and provisions of the policy, (ii) modify any prior endorsement, (ill) extend the Date of Policy, ~ (iv) increase the Amount of Insurance. 16. SEVER.ABILITY In the event any pmviairm of this policy, in whole or in part, is held invalid or unenforceable under applicable law, the p~icy shall be deemed not to include that provision or such part held ts be invalid, but ail other provisions shall remain in full force and effect. 17. CHOICE OF LAW; FORUM (a) Choice of Law: The Insured ecknowiedgas the Company has undenwitten the risks covered by this poficy and determined the premium charged therefore in reliance upon the law affecting interests in real proparty and appticabta to the Interpretation, tights, remedies, or enforcement of policies of title Insurance of ~he jutisdiction where the Land is located, Theretsm, the court or an afaitratar shall apply the law of the jurisdiction where the Land is locatad to determine the validity of claims against t~m Title that are adverse to the Insured and to inteq)ret and anfome the terms of this poke'/. In neither case shall the court or arbitrator apply its conflicts of law pdnciptss to determine the applicable law. (c) Choice of Forum: Any litigation or other proceeding brought by the Insured against the Company must be filed only in a state or federal court within the United States of Amedca or its territories having apple jurisdiction. 18. NOTICES, WHERE SF-NT Any notice ct claim and any other notice or statement in wtiti~g required to be given to the C~mpany under th~ potlcy ~must be given to the Company at Claims Depasment at 300 Eaot 42'~ St, 10 Floo~, New York. NY 10017. File No.: ST0-801136 CLOSING STATEMENT ZIP PECONIC WELLS, LLC to TOWN OF SOUTHOLD Total Development Rights Easement- 29.0426 acres Agricultural Structure Area - t.0 acre within easement area Premises: 2350 Wells Road, Peconic Part of SCTM #1000-86-1-10.9 Closing took place on August 3, 2010 at 11:00 a.m., Southold Town Hall Annex Purchase Price of $ 2,410,535.80' (based upon 29.0426 buildable acres ~ $83,000/buildable acre) disbursed as follows: Payable to ZIP Peconic Wells, LLC $ 2,407,535.80 Check #106360 (8/3/10) Payable to ZIP Peconic Wells, LLC $ 3,000.00** Check #106359 (8/3/10) *eligible for partial reimbursement from USDA-NRCS awarded grant 73-2C31-7-00956 ($990,000) **to be held in escrow until boundary line agreement is recorded Expenses of Closing: Appraisal, Revisions & Report Payable to Brunswick Appraisal Corp. Check #93937 (12/18/07) Payable to Brunswick Appraisal Corp. Check #104655 (3123/10) Payable to Brunswick Appraisal Corp. Check #106415 (8110/10) $ 2,800.00 $ 1,000.00 $ 2,500.00 Environmental Report (Phase I ESA) Payable to Nelson, Pope & Voorhis, LLC Check #97901 (9123/08) $ 1,400.00 Title Report (title #ST0-801136) Payable to Stewart Title Insurance Company Check #106358 (813/10) Title insurance policy $ 9672 Recording easement $ 225 Certified Copy $ 100 Recording boundary line agmt $ 175 $ 10,172.00 Title Closer Attendance Fee Payable to Patricia Fallon Check #106357 (8/3/10) $ 100.00 Those present at Closing: Scoff A. Russell Lisa Clare Kombrink, Esq. Charles R. Cuddy, Esq. Patricia Fallon Melissa Spiro Melanie Doroski Southold Town Supervisor Attorney for Town of Southold Attorney for Seller Title Company Closer Land Preservation Coordinator Land Preservation Sr Administrative Asst TOWN OF SOUTHOLD VENDOR 025182 ZIP t%ECONIC WELLS, LLC 08/03/2010 CHECK 106360 FEND & ACCOUNT P.O. # INVOICE DESCRIPTION AMOUNT H2 .8686.2.000.000 H3 .8660.2.600.100 TBR750 080310A TBR750 080310C PURCHASE PRICE-ZIP WELLS 648,691.04 PURCHASE PRICE-ZIP WEL 1,758,844.76 TOTAL 2,407,535.80 TOWN OF SOUTHOLD VENDOR 025181 ZIP PECONIC WELLS, LLC 08/03/2010 CHECK 106359 FUND & ACCOUNT P.O.~ INVOICE H3 .8660.2.600.100 TBR750 0~03~10B DESCRIPTION AMOUNT PURCHASE PRICE B~-L-WELLS 3,000.00 TOTAL 3,000.00 BRUNSWICK APPRAISAL CORP. REAL ESTATE APPRAISERS AND CONSULTANTS 44 Elm Street, Suil¢ 7 HUNTINGTON, NEW YORK 11743 (631 ) 421-2344 FAX (631) 424-9246 E-Mail: Brun swickappmisalcorp~MSN.com Sanford S. Brunswick Ellnor Bmnswiclc, MAI State Ceflified General Appraisers Annand Brunswick, MAI 1881-1960 November 26, 2007 Town of Southold Department of Land Preservation Southold Town Hall Annex 54375 State Route 25 P.O. Box 1179 Southold, New York 11971-0959 Attention: Melissa A. Spiro, Land Preservation Coordinator Fee Title Open Space/Development Rights Easement Acquisition Zip Pecouic Wells, LLC Property Location: 2350 Wells Road, Peconic INVOICE# 1000-01 Real Estate Appraisal $2,800 Thankyou ?" 2 7 0£pl. 0[ PR£S£SVAT~ON I~'oq~.~,?r~ ,:08&k05~,6~,,: 6~. 000001, 0~' ~V~I~O~ 00B409 RT,T~OR RR'[T~'NTISTC~'. HAT H2 .8685.2.000.000 1000-01 APPRAISAL-2350WELLS 2,800.00 TOTAL 2,800.00 BRUNSWICK APPRAISAL CORP. REAL ESTATE APPRAISERS AND CONSULTANTS 44 Elm Street, Suite 8 HUNTIlqGTON, NEW YORK 11743 (631) 421-2344 FAX (63 I) 424-9246 E-Mail: Brunswickappraisalcorp~MSNcom Sanford S, Brunswick Elinor Brunswick, MAI State Certified General Appraisers Annand Brunswick, MAI 1881-1960 February l6,2010 Town of Southold Department of Land Preservation Southold Town Hall Annex 54375 State Route 25 P.O. Box 1179 Southold, New York 11971 - 0959 Attention: Melissa A. Spiro, Land Preservation Coordinator Fee Title Open Space/Development Rights Easement Acquisition Zip Peconie Wells, LLC Property Location: 2350 Wells Road, Peconic INVOICE# 1000-14 Real Estate Appraisal $1,000 Thank you TOWN OF $OUTHOLD VENDOR 005409 ELINOR BRUNSWICK, MAI 03/23/2010 CHECK 104655 FUND & ACCOUNT P.O.~ INVOICE DESCRIPTION AMOUNT H3 .8660.2.500.200 20141 1000-14 APPRAISAL-ZIP PEC WELLS 1,000.00 TOTAL 1,000.00 BRUNSWICK APPRAISAL CORP. REAL ESTATE APPRAISERS AND CONSULTANTS 44 Elm Street, Suite 8 HUNTINGTON, NEW YORK 11743 (631) 421-2344 FAX (631) 424-9246 E-Mail: elinor@bmnswickappraisl.com Sanford S. Brunswick Elinor Brunswick, MAI State Certified General Appraisers .July 9, 2010 Annand Bnmswick, MAI 1881-1960 Town of Southold Department of Land Preservation Southold Town Hall Annex 54375 State Route 25 P.O. Box 1179 Southold, New York 11971-0959 Attention: Melissa A. Spiro, Land Preservation Coordinator Fee Title Open Space/Development Rights Easement Acquisition Zip Peconic Wells, LLC Property Location: 2350 Wells Road, Peconic INVOICE# 1000-15 Revised Real Estate Appraisal $2,500 Thank you DEPT. OF L/~D PRESERVATION TOWN OF $OU77tOLD VEb[DOR 005409 ELINOR BRUNSWICK, MAI 08/10/2010 CHECK 106415 FL~ND & ACCOUNT P.O.# INVOICE DESCRIPTION /%MO~gT H3 .8660.2.500.200 21558 1000-15 R~V APPR-ZIP PEC WELLS 2,500.00 TOTAL 2,500.00 . telson, Pope & Voorhis, LLC · ~ 572 Walt Whitman Road Phone: 631-427-5665 Meiville NY 11747 Fax: 631-427-5620 Invoice Property: 08186 Proj~:t: VA02702 Phase I ESA (ZIP Peconic Wells) Manager: McGinn, Steven To; Town of Southold Devt of Land Preserv Town Hall 53095 State Rt 25, PO Box 1179 Southold NY 11971 Atlention: Melissa A Spiro Invoice #: 6081 Invoice Date: September 10, 2008 MAKE CHECKS PAYABLE TO NELSON POPE & VOORHIS InPoice Amount $1,400.00 Purchase Order #18S90 - SCTM #1000-86-1-10.9 Contract dated July 1 I, 2008 Item #1: Prepare Phase ! Environmental Site Assessment Work Performed thru 8/27/08 Contract Amount: $1,400.00 Percent Complete: 100.00'/o F~e Earned: $1,400.00 Prior Fee Billings: $0.00 Current Fee Total: $1,400.00 *** Total Project Invoice Amount $1,400.00 Please make all checlc~ payable to NELSON POPE & VOORHI$ Please include invoice number on check NELSON POPE & VOORHIS NOW ACCEPTS CREDIT CARDS VISA - MASTERCARD - AMERICAN EXPRESS DO-'I Of LAND PRESERVATION TOWN OF $OUTHOLD VENDOR 014161 NELSON, POPE & VOORHIS, LLC 09/23/2008 CHECK 97901 FUND & ACCOUNT P.O.# INVOICE DESCRIPTION AMOUNT H3 .8660.2.600.100 18889 6080 H3 .8660.2.600.100 18890 6081 pHASE 1-SEPENOSKI 1,400.00 PHASE 1-ZIP PEC WELLS 1,400.00 TOTAL 2,800.00 Title No. STEWART TITLE INSURANCE COMPANY 707 Westchester Avenue, Suite 411, White Plains, New York 10604 Phone: 800-433-4698 or 914-993-9393 Fax: 914-997-1698 FAIR ~T VALUE ~ER (Optional) P~ MORTGAGE ~S~CE CO~GE P~M~M E~E~: En~umental Waiver of Arbi~fion R~idenfial Adjus~ble ~ ~der ~W YO~ STA~ ~S~SION T~ MORTGAGE T~ (Mo~) MORTGAGE T~ (Mop.or) CO~ P~SERVAT1ON S~Y ~SPE~ON DEPOSAL S~S ~ET ~RT E~OW DE~S~ ~OW DE~S~ FEE B~CY SE~ ~O~G ~E~: ( ) SA~SFA~ON(S) ( ) MORTGAGE(S} ( ) CON~L~ATION, ~NSION & MOD~ICA~ON AG~E~(S) ( ) MORTGAGE ( ) ~a~(s) CLOSER CHARGES, IF ANY: PICK-UP FEE PATRICIA L. FALLON Title Closer TOWN OF SOUTHOLD VENDOR 019624 STEWART TITLE INS~CE CO. 08/03/2010 CHECK 106358 FUND & ACCOUNT P. O. # INVOICE DESCRIPTION AMOUNT H3 .8660.2.600.100 H3 .8660.2.6010.100 H3 .8660.2.60D.100 H3 .8660.2.600.100 TBR750 ST0-801136 TBR750 ST0-801136 TBR750 ST0-801136 TBR750 ST0-801136 TITLE INS-ZIP WELLS 9,672.00 EASEMENT FEE-ZIP WELLS 225.00 CERT.COPY -ZIP WELLS 100.00 BNDRY LINE FEE-ZIP WELLS 175.00 TOTAL ,, 10,172.00 TOWN OF $OUTHOLD VENDOR 006013 PATRICtA FALLON -'08t03/2010 FUND & ACCOUNT P. 0. # INVOICE DESCRIPTION CHECK 106357 AMOUNT · 8660.2. 600. 100 TBR750 ST0-801136 TITLE C~.OSING-ZIP WELLS' TOTAL t00.00 100.00 MELISSA A. SPIRO LAND PI~SERVATION COORDINATOR melissa.spiro~town.southold.ny.us Telephone (631) 765-5711 Facsimile (631 ) 765-6640 DEPARTMENT OF LAND PRESERVATION TOWN OF SOUTHOLD OFFICE LOCATION: Town Hall Annex 54375 State Route 25 (comer of Main Rd & Youngs Ave) Southold, New York MAILING ADDRESS: P.O. Box 1179 Southold, NY 11971~)959 To: From: Date: Re: Supervisor Russell Town Board Town Clerk Land Preservation Committee Town Attorney Planning Board Suffolk County Division of Real Estate Melissa Spiro, Land Preservation Coordinator Tax Assessors Building Department Data Processing Town Comptroller Stewardship Managers Peconic Land Trust, Inc. The Nature Conservancy August 13, 2010 ZIP PECONIC WELLS~ LLC to TOWN OF SOUTHOLD Part of SCTM #t000-86.-'1-'10.9 Please be advised that the Town has acquired a development dghts easement on the agricultural property listed below. If you would like additional information regarding the purchase, please feel free to contact me. LOCATION: SCTM #: PROPERTY OWNER: PURCHASE DATE: PURCHASE PRICE: EASEMENT ACREAGE: ZONING: FUNDING: MISCELLANEOUS: 2350 Wells Road, Peconic part of 1000~86.-1-10.9 ZIP Peconic Wells, LLC Tuesday, August 3, 2010 $2,410,535.80 (based on 29.0426 buildable acres @ $83,000/buildable acre) 29.0246 acres R-80 CPF 2% Land Bank (bonded funds) and partial reimbursement ($990,000 anticipated) from a USDA-NRCS awarded FRPP grant This property is listed on the Community Preservation Project Plan list. It is across the street from, and borders on the west to Town PDR lands. The easement area is planted in sod. To protect the scenic view shed, an Agricultural Structure Area of one acre was designated within the Easement Area. In addition, lot coverage within the designated area was limited to 2%. This project was part of a Conservation Subdivision.