Mitigation Value Clause Samples

Mitigation Value. To the extent provided in the Development Business Plan and consented to by Tejon during the Entitlement Stage (which consent may be withheld in its sole and absolute discretion), Tejon shall convey by grant deed additional land owned by Tejon during the Development Stage if the Company is required to dedicate such land for mitigation purposes to comply with its obligations or conditions of approval for the Entitlements (including conditions of approval imposed to settle any litigation challenging the Entitlements if such settlement has been approved by Tejon and the Executive Committee, in their respective sole and absolute discretion) (the “Mitigation Land”). Unless the Executive Committee unanimously agrees to the contrary, the Mitigation Land will be valued, free and clear of any monetary liens, at One Thousand Five Hundred Dollars ($1,500.00) per acre (the “Mitigation Value”), plus a yield thereon of five percent (5%) per annum, compounded annually, accruing from and after the earlier of (i) January 1, 2004, or (ii) the date upon which the Certified EIR is obtained, until the Mitigation Land is conveyed to the Company or some other transferee at the direction of the Executive Committee.