OPTION AGREEMENT
THIS OPTION AGREEMENT entered into this 1st day of February, 1999, by and
between JORE CORPORATION, a Montana corporation, of Ronan, Montana (the
"Optionee") and XXXXXXX XXXX and XXXX LAND, LLC, a Montana limited liability
company, of Ronan, Montana, (jointly and severally, the "Optionor");
1. For and in consideration of the sum of One Hundred Dollars ($100.00) paid
by the Optionee and received and acknowledged by the Optionor, the Optionor
hereby grants to the Optionee the option to purchase the real property and
any improvements thereon described on Exhibit "A" attached hereto (the
"premises") at the time, for the consideration, and upon the terms and
conditions hereinafter set forth.
2. The Optionee may purchase the premises only during the period beginning
February 1, 1999 and ending 10 years thereafter on February 1, 2009. If
this option is not exercised on or before February 1, 2009 and the sale and
transfer of the premises is not completed on or prior to 60 days following
the exercise date (except for any delays which are not due to the acts of
Optionee, in which event the time to complete the sale and transfer shall
be extended for a reasonable time), this option shall expire and shall
thereafter be of no force or effect.
3. The election of the Optionee to exercise the option to purchase the
premises must be evidenced by a notice in writing addressed to the
Optionor, sent by certified mail, return receipt requested, to the address
of the Optionor as follows:
Xxxxxxx Xxxx
Jore Land, LLC
00000 Xxxxxxx 00 Xxxxx
Xxxxx, Xxxxxxx 00000
4. The price to be paid by the Optionee to the Optionor for the premises if
the option is exercised, shall be the fair market value of the premises at
the date of exercise, as determined by the parties, which is intended to be
the cost of such premises to the Optionor, or, if the parties are unable to
reach an agreement within 30 days of the notice of exercise, then such
amount shall be determined by appraiser Xx XxXxxxxx, with the costs of the
appraisal to be shared by the parties.
5. The option price to be paid to the Optionor, as hereinabove provided, shall
except as to income taxes be a net amount to the Optionor, and all expenses
in connection with the transfer of the premises, including, but not limited
to, title insurance, recording fees, documentary stamps, conveyance tax,
and all other closing costs, shall be paid by the Optionee. The option
price shall be paid by the Optionee in cash, assumption of debt, or a
combination thereof, to the Optionor currently with the conveyance of the
premises by the Optionor to the Optionee. The premises shall be conveyed by
the Optionor to the Optionee free and clear of liens and encumbrances
excepting municipal and zoning ordinances, recorded easements and recorded
restriction of record as of the commencement of this lease, and any other
recorded easements and recorded restrictions recorded thereafter and prior
to purchase which shall have been consented to in writing by Optionee, all
taxes or assessments, general or special, and any other defects, liens, or
encumbrances caused, created or suffered by the Optionee. Optionee shall
obtain and pay for any title evidence which Optionee may feel necessary
prior to conveyance, and the Optionor agrees to cooperate in connection
therewith by delivering to Optionee at least thirty (30) days before the
option date, any
existing title evidence with respect to the premises.
6. This option may be exercised by Optionee by written notice given to
Optionor not less than sixty (60) days prior to the expiration of the
option term (the "purchase date").
7. Optionor shall at least fifteen (15) days prior to the purchase date
furnish Optionee with a commitment by a title insurance company licensed to
do business in the State of Montana to issue a policy of title insurance in
the full amount of the purchase price and guaranteeing Optionor's title to
the premises to be in the condition hereinafter required.
8. Conveyance shall be by Optionor's good and sufficient warranty deed free
and clear of any and all liens and encumbrances except (1) easements for
public utilities; (2) municipal, and zoning ordinances; (3) current taxes
and assessments not then due and payable and which are not the obligation
of Optionor; (4) liens, encumbrances and easements of record as of the date
of this Option Agreement; (5) debts assumed by Optionee as part of the
purchase price; and (6) any liens and encumbrances created by, through or
under Optionee. Upon Optionor's delivery of said warranty deed, the
purchase price shall be payable in full on the purchase date to Optionor.
In the event the title evidence furnished by Optionor discloses a defect
which cannot be cured and the curing of which Optionee is unwilling to
waives Optionee may withdraw his exercise of his option to purchase. If,
despite tender to Optionee the warranty deed and title evidence called for
above, Optionee shall not make payment of the purchase price on the
purchase date, all right and option of Optionee to purchase the premises
shall forever cease and determine subject to Optionor's right to require
specific performance of Optionee's exercise of his option to purchase and
to the Optionor's right to exercise any and all other remedies available to
it by reason of Optionee's failure or purchase.
WHEREFORE, the parties have set their hands this 1st day of February, 1999.
OPTIONEE: OPTIONOR:
JORE CORPORATION JORE LAND, LLC
By: /s/ Xxxxxxx Xxxx By: /s/ Xxxxxxx Xxxx
------------------------------------ -----------------------------
Xxxxxxx Xxxx, President Xxxxxxx Xxxx, Managing Member
/s/ Xxxxxxx Xxxx
-----------------------------
Xxxxxxx Xxxx
STATE OF MONTANA )
:ss
COUNTY OF LAKE )
On this 1st day of February, in the year 1999, before me, the undersigned
Notary Public for the State of Montana, personally appeared Xxxxxxx Xxxx, known
to me to be the President of Jore Corporation, the corporation that executed the
within instrument, and acknowledged to me that such corporation executed the
same.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal the day and year first above written.
/s/ Xxxxxxxxx X. XxXxxxx
(Notarial Seal) ---------------------------------------
Notary Public for the State of Montana
Residing at Ronan, Montana
My Commission expires: September 0000
XXXXX XX XXXXXXX )
:ss
COUNTY OF LAKE )
On this 1st day of February, in the year 1999, before me, the undersigned
Notary Public for the State of Montana, personally appeared Xxxxxxx Xxxx, known
to me to be the Managing Member of Jore Land, LLC, the limited liability company
that executed the within instrument, and acknowledged to me that such limited
liability company executed the same.
IN WITNESS HEREOF, I have hereunto set my hand and affixed my official seal
the day and year first above written.
/s/ Xxxxxxxxx X. XxXxxxx
(Notarial Seal) ---------------------------------------
Notary Public for the State of Montana
Residing at Ronan, Montana
My Commission expires: September 0000
XXXXX XX XXXXXXX )
:ss
COUNTY OF LAKE )
This instrument was acknowledged before me this 1st day of February, in the
year 1999, by Xxxxxxx Xxxx.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed my official
seal the day and year first above written.
/s/ Xxxxxxxxx X. XxXxxxx
(Notarial Seal) ---------------------------------------
Notary Public for the State of Montana
Residing at Ronan, Montana
My Commission expires: September 2002
