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Contract for Deed

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ThisÿContract for Deedÿprovides the language for an installment contract financed by the seller of real property and contains optional language for the use of a balloon payment. This document in its draft form contains numerous of the standard clauses commonly used in these types of agreements, as well as optional language to allow for customization to ensure the specific terms of the parties agreement are addressed.ÿ This contract should be used by sellers and purchasers of real property and may be particularly useful in the sale of agricultural property.

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									Land Sale Installment
Agreement
This Land Sale Installment Agreement provides language for an installment contract
financed by the seller of real property and contains optional language for the use of a
balloon payment. This document in its draft form contains numerous of the standard
clauses commonly used in these types of agreements, as well as optional language to
allow for customization to ensure the specific terms of the parties’ agreement are
addressed. This contract should be used by sellers and purchasers of real property and
may be particularly useful in the sale of agricultural property.
                  LAND SALE INSTALLMENT AGREEMENT
THIS LAND SALE INSTALLMENT AGREEMENT (the “Agreement”), is made this ____
day of _____________, 2_____, [Instruction: Insert date.] by and between ______________
[Instruction: Insert Seller name.] (the “Vendor”) and ________________ [Instruction: Insert
Purchaser name.] (the “Purchaser”), wherein the Vendor agrees to sell to the Purchaser and the
Purchaser agrees to purchase from the Vendor, the farm land [Instruction: If the contract for
deed is for other property than farm land, delete the reference to farm land and insert
applicable information.] now owned by the Vendor as more particularly described herein.

1. PROPERTY

          A. The Purchaser shall purchase from the Vendor and the Vendor shall sell to the
             Purchaser, the farm land [Instruction: If the Agreement is for other property
             than farm land, delete the reference to farm land and insert applicable
             information. Please note, if reference is made here, ensure it matches the
             description provided above] owned by the Vendor located in the city/town of
             _________________, [Instruction: Choose whether farm land is located in a
             city or town and state name of same.] and more particularly described as
             follows and depicted on SCHEDULE “A” annexed hereto:              [Instruction:
             Insert brief property description, including address.] (the “Property”).

          B. The Purchaser shall purchase the Property from the Vendor together with all
             fixtures, easements, claims, permits, rights and privileges pertaining to and in
             association with the Property.

2. FARM LAND IMPROVEMENTS [Optional language. Delete if inapplicable.]

          A. The Vendor hereby represents and warrants to the Purchaser that the following
             farm land improvements have been made to the Property as of the date hereof:

             i. ______________________________________________;

            ii. ______________________________________________; and

           iii. ______________________________________________. [Instruction: Insert
                farm land improvements including any outbuildings, sheds and the like.]

3. RANCH/RESIDENTIAL            IMPROVEMENTS           [Optional   language.       Delete   if
   inapplicable.]

          A. The Vendor hereby represents and warrants to the Purchaser that the following
             ranch/residential improvements have been made to the Property as of the date
             hereof:

             i. _____________________________________________;

            ii. _____________________________________________; and
             iii. _____________________________________________. [Instruction: Insert
                  residential improvements including houses and garages.]

4. FARM EQUIPMENT AND ACCESSORIES [Optional language.                                  Delete if
   inapplicable.]

            A. The following farm equipment and accessories shall be included in the purchase
               price for the Property and the Vendor shall convey all right, title and interest in
               and to the following farm equipment and accessories to the Purchaser free and
               clear of any lien or encumbrance:

               i. ____________________________________;

              ii. ____________________________________; and

             iii. ____________________________________. [Instruction: Insert description
                  of farm equipment and accessories being included in the purchase price.]

             iv. Vendor shall use best efforts to transfer any applicable warranties for any such
                 farm equipment and accessories, if any. However, Vendor does not make any
                 warranty for any such equipment and/or accessory, and each of same are being
                 sold “AS IS” and “WITH ALL FAULTS”.

            B. The Purchaser acknowledges and agrees that the Vendor shall retain the following
               farm equipment and accessories and such farm equipment and accessories shall
               not         be        included         in       the       purchase          price:
               ___________________________________________.             [Instruction:     Insert
               description of farm equipment and accessories not included in the purchase
               price.] Each party shall be responsible for any and all taxes levied upon such
               party, including any transfer or sales taxes which may be incurred as a result of
               any transfer.

5. RESIDENTIAL FIXTURES AND CHATTELS

            A. The following residential fixtures and chattels shall be included in the purchase
               price for the Property and the Vendor shall convey all right, title and interest in
               and to the following residential fixtures and chattels to the Purchaser free and
               clear of any lien or encumbrance:

               i.       ___________________________________;

              ii.       ___________________________________; and

             iii.       ___________________________________.          [Instruction:    Insert
                        description of any residential fixtures and chattel included in the
                        purchase price for the Property. Fixtures are generally considered to
                        be those items which would be difficult to remove and have become
                        part of the residence. Examples might include but are not limited to

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                           appliances, light fixtures, built-ins or through the wall air
                           conditioners.]

            B. The Purchaser acknowledges and agrees that the Vendor shall retain the following
               farm residential fixtures and chattels and such fixtures and chattels and
               accessories   shall    not   be    included     in   the     purchase       price:
               ___________________________________________.           [Instruction:       Insert
               description of any residential fixtures and chattel not included in the
               purchase price for the Property.]

                    The Vendor is not required to make any repairs to the premises and the personal
                    property located therein included in the sale prior to or following closing to title,
                    except as otherwise agreed to by the parties in writing. The Vendor agrees,
                    however, to keep the premises and personal property in substantially the same
                    condition as they are on the date of this Agreement, reasonable wear and tear
                    excepted. Vendor is not obligated to install, repair or replace any fixtures,
                    equipment or appliances in the Property, nor is Vendor required to patch any
                    minor holes in plaster, sheetrock or tile caused by the removal of pictures or other
                    artwork from the walls.

6. CROPS [Optional language. Delete if inapplicable.]

            A. The Vendor and the Purchaser agree that the Purchaser, at its sole cost and
               expense, shall have the sole right to harvest the following crops which are
               currently growing on the Property:

               i.      _________________________________;

              ii.      _________________________________; and

             iii.      _________________________________. [Instruction: Insert crops which
                       will be harvested by Purchaser.]

            It shall be the responsibility of Vendor/Purchaser [Instruction: Choose who will
            bear responsibility. If it is to be Vendor’s responsibility, include the following
            additional sentences: “Vendor shall use best efforts to tend such crops but shall
            bear no liability with respect to the failure of any such crop to produce the
            desired, intended or usual result, whether or not same is as a result of weather,
            Vendor’s acts, acts of God or otherwise, and further, Vendor shall bear no
            liability with respect to the market share or value of any such crop. All of the
            foregoing shall be considered out of Vendor’s control.] to tend such crops between
            the date of this Agreement and the Closing Date of this transaction. Vendor further
            agrees that Vendor will permit Purchaser reasonable access to the Property in order to
            harvest the above-referenced crops. Purchaser shall be entitled to any income from
            the above-mentioned crops.

            B. The Purchaser acknowledges and agrees that the Vendor, at its sole cost and
               expense, shall have the sole right to harvest the following crops which are

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                    currently growing on the Property and shall have such right in the event such
                    crops must be harvested after the Closing Date of this transaction:

               i.      _________________________________; and

              ii.      _________________________________. [Instruction: Insert crops which
                       will be harvested by Vendor.]

            It shall be the responsibility of Vendor/Purchaser [Instruction: Choose who will
            bear responsibility. If it is to be Purchaser’s responsibility, include the following
            additional sentences: “Purchaser shall use best efforts to tend such crops but
            shall bear no liability with respect to the failure of any such crop to produce the
            desired, intended or usual result, whether or not same is as a result of weather,
            Purchaser’s acts, acts of God or otherwise, and further, Purchaser shall bear no
            liability with respect to the market share or value of any such crop. All of the
            foregoing shall be considered out of Purchaser’s control.] to tend such crops
            between the Closing Date of this transaction and the harvest date(s) of the crops.
            Purchaser further agrees that Purchaser will permit Vendor reasonable access to the
            Property in order to harvest the above-referenced crops. Vendor shall be entitled to
            any income from the above-mentioned crops.

7. PURCHASE PRICE AND DEPOSIT

             A. The purchase price for the Property shall be the sum of ____________
                 ($_______) [Instruction: Insert purchase price.] United States Dollars (the
                 “Purchase Price”) which shall be payable as follows:

                       (i) Upon execution of this Agreement, the Purchaser shall deliver to the
                           Vendor or the Vendor’s attorney, a Deposit in the amount of ___________
                           ($_______) [Instruction: Insert deposit amount.] United States Dollars
                           (the “Deposit”) which shall be retained by the Vendor or the Vendor’s
                           attorney until the Closing Date of this transaction. The Deposit shall be
                           held pursuant to a separate escrow agreement, which shall be deemed
                           incorporated herein by reference. The Deposit shall be applied to the
                           Purchase Price.

                       (ii) The remainder of the Purchase Price shall be paid in equal monthly
                            installments of _______ ($______) [Instruction and Comment: Insert
                            written monthly payment amount followed by numerical
                            representation of same. If payments are not to be equal, a schedule
                            should be attached.] Dollars each, with interest thereon at the fixed rate
                            of __________ percent (_____ %) [Instruction and Comment: Insert
                            interest rate. Parties may customize to different computation period,
                            for example, monthly interest rate. Further, if the interest rate is to
                            be variable, remove the word “fixed” and insert variable, and state
                            initial percentage rate and attach rate change schedule] annually. The
                            first payment of principal and interest shall be due and payable on the

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                        ______ day of ______________, 20__. [Instruction: Insert date upon
                        which first payment shall be made.] Subsequent payments shall be due
                        on the same day of each month thereafter for a period of ______________
                        [Instruction: Insert number of months in which payments must be
                        made.] months.        [Optional balloon payment language.] On the
                        ___________ day of ___________________, 20____ [Instruction: Insert
                        date upon which balloon payment is due.] the entire remaining principal
                        and interest and/or any additional charges, including but not limited to late
                        charges or insufficient funds charges shall become immediately and fully
                        due and payable without demand.

             B. Payments not made within _______ (__) [Instruction: Insert written number of
                 days in which payment must be made followed by numerical representation
                 of same.] days of the due date shall be subject to a late charge of ___ percent
                 (_______ %) [Instruction and Comment: Insert written late fee interest rate
                 followed by numerical representation of same. Vendor should review state
                 statutory maximum interest rate requirements to avoid any potential usury
                 issues.] of the payment amount. In the event that any payment is returned for
                 insufficient funds ("NSF") or if the undersigned stops payment on any payment,
                 Purchaser will pay $35 [Comment: Amount charged for NSF checks should
                 be reasonable and Vendor may want to have such dollar amount be
                 reasonably related to the amount to be charged by Vendor’s bank for such
                 checks.] to Vendor for each such check, plus late fees as described herein until
                 Vendor has received such incremental payment in full. All payments under this
                 contract shall be made at ______________________________________
                 [Instruction: Insert Vendor address.] or at such other places as the lender may
                 from time to time designate in writing.

             C. This contract is/is not assignable/assumable [Instruction: Choose whether or
                 not note is or is not to be assignable and/or assumable. To be assignable
                 means the holder can sell the rights to receive money owed under the
                 contract to another party. To be assumable means the Purchaser can ask
                 another party to take over the obligations to make payments.]. [Option: At
                 the parties’ option, the Agreement can be made assignable using the
                 following language. If only one party is to be permitted to assign the rights
                 and obligations under the contract, this can be modified to state which party
                 is permitted to assign.] The Purchaser covenants and agrees not to assign
                 any of the obligations under this Agreement, except by express, written
                 consent of Vendor. An assignment without the prior written consent of
                 Vendor shall be absolutely null and void and shall, at Vendor’s option,
                 terminate this Agreement. In the event of same, at Vendor’s option in its
                 sole discretion, all principal and interest due under this Agreement may
                 become immediately due and payable in full. Vendor shall have the right to
                 assign its rights and obligations under this Agreement without any consent
                 by Purchaser.



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             D. The obligations to pay under this Agreement may be prepaid in whole or in part at
                 any time without penalty. All payments shall be first applied to any applicable
                 late fees or NSF charges, then to interest then accrued, and then towards the
                 principal sum.

             E. All parties to this Agreement waive presentment, demand and protest, and all
                 notices thereto with respect to payment of any amounts due hereunder.

             F. In the event of any default in the payment of any principal sum or interest due
                 hereunder, then the entire principal sum and accrued interest shall at the option
                 of the holder hereof become at once due and collectible without notice. The
                 undersigned agrees to pay all costs of collection including reasonable attorney's
                 fees.

             G. In the event this Agreement terminates prior to the Closing Date of this
                 transaction for any reason whatsoever, the Vendor or the Vendor’s attorney shall
                 forthwith refund the Deposit to the Purchaser. [Option: Vendor may wish to
                 negotiate this provision, as typically, the Vendor would retain the deposit if
                 the Purchaser defaulted and failed to close title pursuant to the Agreement.]

8. CLOSING DATE

            A. The Closing Date for this transaction shall be the ____ day of __________,
               2____, [Instruction and Comment: Insert closing date. Parties may wish to
               revise this language to reflect the closing date as “on or about” a certain date
               rather than a set date as it gives both parties flexibility.] (the “Closing Date”)
               or on such other date as the Vendor and the Purchaser in writing may agree. On
               the Closing Date, the Vendor shall transfer all right, title and interest in and to the
               Property, including any included farm equipment and accessories and fixtures and
               chattels, to the Purchaser free and clear of any liens or encumbrances. Vendor
               shall make best efforts to deliver any applicable and transferable warranty
               documents. Each party shall also execute any additional documents, including
               but not limited to any tax or transfer documents, necessary to effectuate this
               transaction.

9. SURVEY OF LAND

            A. The Vendor shall deliver to the Purchaser upon execution of this Agreement a
               copy of any survey of the Property in his/her/its possession.

10. LEASES

            A. The Vendor represents and warrants to the Purchaser that there are no leases
               covering the Property.

or



© Copyright 2015 Docstoc Inc.                                                             7
            A. The Vendor represents and warrants to the Purchaser that the following are the
               leases covering the Property and the Purchaser acknowledges receipt of executed
               copies of same:

                ______________________________________; and
                ______________________________________. [Instruction: Choose the
                applicable of the two alternate paragraphs regarding leases. If any leases
                exist, list same.]

11. STATUTORY TAX DISTRICTS

            A. If the Property is situated in a utility or other statutorily created district providing
               water, sewer, drainage, or flood control facilities and services, state law may
               require the Vendor to deliver and the Purchaser to sign the statutory notice
               relating to the tax rate, bonded indebtedness, or standby fee of the district prior to
               final execution of this contract. Each party acknowledges and agrees to provide
               and execute any such necessary documents.

            B. If the Property abuts the tidally influenced waters of the state, state law may
               require a notice regarding coastal area property to be included in the contract. An
               addendum containing the notice promulgated by the state or required by the
               parties must be used.

            C. If the Property is located in a certificated service area of a utility service provider
               and the Property does not receive water or sewer service from the utility service
               provider on the date the Property is transferred, state law may require a notice
               regarding the cost of providing water or sewer services to the Property. An
               addendum containing the notice promulgated by the state or required by the
               parties must be used.

            D. The Property is/is not located in an agricultural development district.
               [Instruction: Choose one.]

                [Comment: If any or all of the above statements are inapplicable, delete.]

12. INSPECTION

            A. The Purchaser shall have the right to have the Property inspected by an inspector,
               qualified by the laws of the applicable jurisdiction to inspect farm land. The
               Vendor shall allow the Purchaser’s inspector to inspect the Property at a mutually
               agreeable time and date. All costs associated with the Purchaser’s inspection of
               the Property shall be borne by the Purchaser. The Vendor shall not be held liable
               for any failure by the Purchaser to complete such inspection of the Property.

13. VENDOR’S DISCLOSURE

            A. The Purchaser acknowledges having received a completed copy of the Vendor’s
               disclosure in the form annexed hereto as SCHEDULE “B”.

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            B. The Purchaser acknowledges having received a copy of the Vendor’s disclosure
               in respect to the disclosure of lead-based paints and lead-based paint hazards as
               required by the laws of the applicable jurisdiction.

14. ENVIRONMENTAL MATTERS

            A. The Purchaser acknowledges that the Purchaser has the right to have an
               environmental assessment completed on the Property by a person or organization
               that is qualified in the applicable jurisdiction to complete environmental studies.
               The Vendor shall not be held liable for any failure by the Purchaser to complete
               such environmental assessment of the Property.

15. GOVERNMENT PROGRAMS

            A. The Property is subject to the following government programs and the Vendor
               shall provide copies of any and all documents relating to the following
               government programs to the Purchaser upon execution of this Agreement:

                    ______________________; and

                    ______________________. [Instruction: Insert any applicable government
                    programs.]

            B. The Purchaser acknowledges that participation in any and all governmental
               programs or agreements set forth above shall survive the Closing Date of this
               transaction. Notwithstanding the foregoing, Vendor makes no representation as to
               the continuation of any such governmental program and/or agreement nor does
               Vendor make any representation that the Property shall continue to be eligible for
               any such program and/or agreement, except that Vendor shall maintain its
               operations as of the date of this Agreement in an effort to continue such
               eligibility. Vendor shall have no liability with respect to any continuation of any
               such program and/or agreement or the eligibility of the Property or Vendor for
               any such program and/or agreement, except as otherwise set forth herein.

16. GENERAL PROVISIONS

            A. All covenants, representations and warranties in this contract survive closing.
               [Comment: This sentence can be revised if any covenants, representations
               and/or warranties are not to survive closing.]

            B. The Vendor shall deliver to Purchaser possession of the Property in its present or
               required condition, ordinary wear and tear excepted.

            C. The Vendor shall transfer all right, title and interest in and to the Property,
               including the farm equipment and accessories and the residential fixtures and
               chattels included in the Purchase Price, to the Purchaser on the Closing Date, free
               and clear of all liens and encumbrances.


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            D. All property taxes and any other taxes for the current year, interest, maintenance
               fees, assessments, dues and rents will be prorated through the Closing Date. If
               taxes for the current year vary from the amount prorated at closing, the parties
               shall adjust the proportions when tax statements for the current year are available.
               If taxes are not paid at or prior to closing, the Purchaser shall pay taxes for the
               current year. Rentals which are unknown at time of closing will be prorated
               between Purchaser and Vendor when they become known.

            E. If this sale or the Purchaser’s use of the Property after the Closing Date results in
               the assessment of additional taxes, penalties or interest for any period prior to the
               Closing Date, such assessments will be the obligation of Purchaser.

            F. If any part of the Property (except any crops) is damaged or destroyed by fire or
               other casualty after the date of this Agreement [Comment: Parties may wish to
               consider tempering this language, as it is onerous to Vendor. Reasonable
               alternatives might be “If substantially all of the Property” or “If a
               substantial portion of the Property”], the Vendor, at Vendor’s expense, shall
               restore the Property to its previous condition as soon as reasonably possible, but
               in any event by the Closing Date. If the Vendor fails to do so due to factors
               beyond the Vendor’s control, Purchaser may terminate this Agreement and the
               Deposit will be refunded to Purchaser in full or the Purchaser shall have the
               option to extend the time for performance up to _____ (___) [Instruction: Insert
               number of days.] days and the Closing Date will be extended as necessary or the
               Purchaser shall have the option to accept the Property in its damaged condition
               with an assignment of insurance proceeds and receive credit from the Vendor at
               the Closing Date in the amount of the deductible under the insurance policy.
               With respect to any crops included in the Purchase Price which may be damaged
               or destroyed by fire or other casualty (including but not limited to blight or poor
               weather conditions), to the extent Vendor is unable to restore such crops to their
               previous condition, Vendor shall reduce the Purchase Price by the amount
               attributed to such crops hereunder. In such event, Vendor shall retain any and all
               insurance proceeds paid for such crops, if any. The Vendor’s obligations under
               this paragraph are independent of any obligations of the Vendor contained herein.

            G. In the event the Purchaser fails to comply with any term or condition of this
               Agreement, the Purchaser shall be deemed in default of its terms, conditions and
               provisions. Upon default of the Purchaser, the Vendor may seek to enforce
               specific performance, seek such other relief as may be provided by applicable
               laws, or both, or terminate this Agreement and receive the Purchaser’s Deposit as
               liquidated damages, thereby releasing both parties from this Agreement.

            H. The prevailing party in any legal proceeding related to this Agreement is entitled
               to recover reasonable attorney’s fees and all costs of such proceeding incurred by
               the prevailing party.

            I. Any notice, direction or other document required or permitted to be given
               hereunder or for the purposes hereof (hereinafter in this section called a “notice”)

© Copyright 2015 Docstoc Inc.                                                           10
                to any party shall be in writing and shall be sufficiently given if delivered
                personally, or if sent by prepaid registered mail or if transmitted by facsimile or
                other form of recorded communication tested prior to transmission to such party;

        (a)     in the case of a notice to the Vendor, at:

                _______________

                Fax:_____

                [Instruction: Insert Vendor’s contact information.]

                with a copy to the Vendor’s Attorney, at:

                _______________

                Attention: _____

                Fax: _____

                [Instruction: Insert Vendor’s attorney contact information.]

        (b)     in the case of a notice to the Purchaser, at:

                _______________

                Fax:_____

                [Instruction: Insert Purchaser’s contact information.]

                with a copy to the Purchaser’s attorney, at:

                _______________

                Attention: _____

                Fax:_____

                [Instruction: Insert Purchaser’s attorney contact information.]

                or at such other address as the party to whom such writing is to be given shall
                have last notified the party giving the same in the manner provided in this
                Section. Any notice delivered to the party to whom it is addressed as
                hereinbefore provided shall be deemed to have been given and received on the
                day it is so delivered at such address, provided that if such day is not a Business
                Day then the notice shall be deemed to have been given and received on the next
                Business Day. Any notice mailed as aforesaid shall be deemed to have been given
                and received on the third Business Day following the date of its mailing. Any


© Copyright 2015 Docstoc Inc.                                                          11
                notice transmitted by facsimile shall be deemed given and received on the first
                Business Day after its transmission.

            J. This Agreement shall be governed by the laws of the State of _______________
               [Instruction: Insert state.] applicable therein.

            K. Each of the parties hereto acknowledges and declares that, to the best of each such
               respective party’s knowledge, the statements contained in the recitals applicable
               to such party are true in substance and in fact.

            L. This Agreement expresses the entire Agreement among the parties hereto with
               respect to all matters herein, and the execution has not been induced by, nor do
               any of the parties hereto rely upon or regard as material, any representations or
               premises whatsoever not incorporated herein and made a part hereof.

            M. This Agreement may be executed by the parties in separate counterparts, each of
               which when so executed and delivered shall be an original, but all such
               counterparts shall together constitute one and the same instrument.

            N. The parties covenant and agree that they will from time to time and at all times
               hereafter, upon every reasonable request of any of the others, make, do and
               execute or cause to be made, done or executed all such further acts, deeds,
               documents, instruments or assurances as may be reasonably required for the
               purposes of implementing the matters contemplated by this Agreement.

            O. Neither this contract nor any provision thereof may be waived, changed or
               cancelled except in writing. This contract shall also apply to and bind the heirs,
               distributees, legal representatives, successors and permitted assigns of the
               respective parties. The parties hereby authorize their respective attorneys to agree
               in writing to any changes in dates and time periods provided for in this contract.

            P. Any singular word or term herein shall also be read as in the plural and the neuter
               shall include the masculine and feminine gender, whenever the sense of this
               contract may require it.

            Q. The captions in this contract are for convenience or reference only and in no way
               define, limit or describe the scope of this contract and shall not be considered in
               the interpretation of this contract or any provision hereof.

            R. This Agreement shall not be binding or effective until duly executed and
               delivered by Vendor and Purchaser.

            S. Each party shall, at any time and from time to time, execute, acknowledge where
               appropriate and deliver such further instruments and documents and take such
               other action as may be reasonably requested by the other in order to carry out the
               intent and purpose of this contract. This paragraph shall survive Closing.



© Copyright 2015 Docstoc Inc.                                                          12
            T. This Agreement is intended for the exclusive benefit of the parties hereto and,
               except as otherwise expressly provided herein, shall not be for the benefit of, and
               shall not create any rights in, or be enforceable by, any other person or entity.

            U. This Agreement shall not terminate upon the death of any one or all persons
               comprising Purchaser.

IN WITNESS WHEREOF the Vendor and the Purchaser have executed this Agreement as of
the day and year first written above.




Witness:                                             Vendor




Witness:                                             Purchaser




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                                SCHEDULE “A”




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                                SCHEDULE “B”




© Copyright 2015 Docstoc Inc.                  15

								
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