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ORIGINAL OPTION AGREEMENT TO PURCHASE REAL PROPERTY This Option Agreement is entered into this 9-0.- day of March, 1998 by and between Matjorie A. L. Moehnert, Trust (hereinafter "GRANTOR"), and the CITY OF MOSCOW, a municipal corporation of State ofldaho, (hereinafter "GRANTEE"); WITNESSETH In consideration of the mutual covenants set forth herein, GRANTOR and GRANTEE agree as follows 1. CONSIDERATION AND PROPERTY In consideration of the sum of FIVE THOUSAND DOLLARS ($5,000 00) to be paid by GRANTEE to GRANTOR, upon acceptance of this agreement by all parties, GRANTOR hereby grants unto GRANTEE an irrevocable option to purchase real property situated in the County of Latah, State ofldaho (hereinafter the "PROPERTY"), and which PROPERTY is more particularly described as follows Situated in the City of Moscow, County of Latah, State ofldaho, to-wit: 9.23 acres of Lots A and B of Schumacher's Addition to the City of Moscow, located in the Northwest Quarter of Section 9, Township 39 North, Range 5 West, Boise Meridian. 2. TERMS AND CONDITIONS This Option Agreement is subject to the following terms and conditions A This Option Agreement must be executed by the parties on or prior to March 12. , 1998. B. GRANTOR shall have full use of the Property until this Option Agreement has been fully exercised by GRANTEE Provided however, that GRANTOR shall commit no waste upon the PROPERTY or place any improvements thereon, including but not limited to, filling of the PROPERTY or any portion thereof C GRANTOR shall pay all taxes due until this Option Agreement has been fully exercised by GRANTEE D. The term of this Option Agreement shall be until November 1, 1998. 3. EXERCISE OF OPTION BY GRANTEE GRANTEE may exercise this Option Agreement in the following manner: OPTION AGREEMENT TO PURCHASE REAL PROPERTY Page 1 98-04 ---PAGE BREAK--- A. By giving thirty (30) days notice to GRANTOR that GRANTEE is exercising GRANTEE'S option; and B. By setting a closing date for transfer of the property within ninety (90) days from the date of such notice that GRANTEE is exercising GRANTEE'S option; 4. CONDITIONS OF SALE A. The total purchase price of the Property shall be THREE HUNDRED TWENTY FIVE THOUSAND DOLLARS ($325,000 00). Terms of payment; cash at closing. B. Title to the Property is to be conveyed by Warranty Deed, and is to be marketable and insurable except for rights reserved in federal patents, state or railroad deeds, building or use restrictions, building and zoning regulations and ordinances of any governmental unit, and rights of way and easements of record. GRANTOR warrants that there are no liens, encumbrances or defects which are to be discharged or assumed by GRANTEE, and title shall not be subject to any such liens or encumbrances or defects. C. Upon due exercise of this Option Agreement by GRANTEE, GRANTOR shall immediately, at GRANTOR'S expense, apply for a preliminary commitment for a standard form Purchaser's policy of title insurance to be issued through Latah Title Company. Said preliminary commitment and the title policy to be issued shall contain no exceptions other than those provided in said standard form and those noted in paragraph 4.B. hereof If title cannot be made so insurable prior to the closing date called for herein at GRANTEE'S option, the option consideration noted in paragraph 1 herein shall be returned to GRANTEE and this Option Agreement shall automatically terminate, unless GRANTEE elects in writing to waive such defects or encumbrances. D. Environmental matters. GRANTOR covenants that they have not placed or brought onto the Property, nor permitted to be placed or brought onto the Property, hazardous \substances (as defined by section 101(14) of the comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, 42 U.S. C. section 9601(14) or materials including but not limited to, petroleum products, the removal of which is required or the mruntenanee of which is prohibited or penalized by any applicable local, state or federal law, ordinance, rule, regulation or requirement and, to the best knowledge of GRANTOR the Property is free of all such hazardous substances and materials. GRANTOR asserts that GRANTOR has no specialized knowledge regarding hazardous substances or expertise beyond that of an ordinary person. Excepting that GRANTEE does acknowledge that property may contain two underground petroleum tanks and GRANTOR makes no representations concerning the presence of lead or asbestos. E. It is hereby agreed that the "closing agent" for the purchase of the PROPERTY shall be Latah Title Company. OPTION AGREEMENT TO PURCHASE REAL PROPERTY Page 2 ---PAGE BREAK--- F. On or before the closing date, GRANTOR and GRANTEE shall deposit with closing agent all funds and instruments necessary to complete the sale of the PROPERTY G. GRANTOR shall deliver possession of the PROPERTY to GRANTEE at time of closing. Closing means the date on which all documents are recorded and the sale proceeds are available to GRANTOR. GRANTOR shall however be given sixty (60) days after closing to vacate the home and outbuildings. H. Closing costs and pro-ration. GRANTOR and GRANTEE shall each pay one-half of closing fees. Taxes on the PROPERTY for the current year shall be prorated as of closing. 5. RIGHT TO ENTER QN PROPERTY GRANTEE shall have the right to enter PROPERTY for inspection, investigation, surveying, and testing of the PROPERTY during the life of this Option Agreement at reasonable times. If such inspection, investigation and/or testing results in damage to growing crop') GRANTEE shall pay the reasonable cost of such damage. GRANTEE agrees to give GRANTOR advance notice before entering onto property. GRANTEE accepts all liability for themselves, their contractors, employees and guests while on the property. 6. RENEWAL At any time prior to the expiration from the date of execution of this Option Agreement, GRANTEE shall have the right, to be exercised in its sole discretion, to renew this Option Agreement for an additional period of five ( 5) months by delivering notice to GRANTOR its intention to renew and paying to GRANTOR additional option consideration in the amount of FIVE THOUSAND DOLLARS ($5,000.00). If GRANTEE exercises this right to renew this Option Agreement, all rights and duties contained herein shall continue during said period. 7. FORFEITUR.E BY GRANTEE: Failure to exercise or renew this Option Agreement, prior to the expiration shall result in a forfeiture by GRANTEE of the option consideration described in paragraph Consideration and Property, and paragraph Renew a and this Option Agreement shall be terminated and said Option shall expire. 8. OPTION EXERCISED Parties agree that if this option or extended option is exercised within the time provided that all option monies paid by the GRANTEE to the GRANTOR shall apply toward the purchase price. OPTION AGREEMENT TO PURCHASE REAL PROPERTY Page 3 ---PAGE BREAK--- 9. VENUE AND ATTORNEY FEES GRANTOR and GRANTEE agree that should any provision of this Option Agreement be litigated in the future, the prevailing party will be entitled to reasonable attorney's fees and costs. Venue for any such litigation shall be with the District Court of the Second Judicial District of the State of Idaho in and for the County of Latah. IN WITNESS WHEREOF, GRANTOR and GRANTEE have executed this agreement the day and year first set forth above. GRANTOR OPTION AGREEMENT TO PURCHASE REAL PROPERTY Page 4 ---PAGE BREAK--- STATE OF IDAHO ) ) ss County of Latah ) ACKNOWLEDGMENTS On this day of . 19 '1!5. before me, a Notary Pu . blic in and for said State, appeared IIJaoy=; 4lj'f; Vl.S . , known to me to be the perso s named above and acknowledged to me that they executed the foregomg document. MyFilc!'/lega!ICoru.ractb OPTION AGREEMENT TO PURCHASE REAL PROPERTY Page 5