03 - Purchase Agreement - Lonesome Cottage

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PURCHASE AGREEMENT (Land) THIS PURCHASE AGREEMENT is made and entered into as of this day of July, 2007, by and between the City of Pequot Lakes, a municipal corporation ("Seller"), and Lonesome Cottage, LLC, a Minnesota limited Liability company ("Buyer"). 1. Recitals. 1.1 Pro e . Seller owns certain land located in the City of Pequot Lakes, Minnesota which is legally described on Exhibit A, and easements and other rights appurtenant to the land including, but not limited to, title and interest in and to any streets, roadways, alleys, and sidewalks, whether public or private, adjacent to the land(said land and rights will collectively be referred to in this Agreement as the "Property"). 1.2 Purchase and Sale. Seller wishes to sell the Property to Buyer, and Buyer wishes to purchase the Property from Seller, all on the terms and conditions outlined in this Agreement. 2. Purchase Price. The purchase price for the Property to be paid by Buyer to Seller shall be One hundred and forty-six thousand and No/100 Dollars($146,000.00)payable as follows: 2.1 Earnest Money. One thousand and No/100 Dollars ($1000.00) earnest money ("Earnest Money"), to be delivered to Sandelin Law Office ("Title Company") within five (5) days after the Effective Date of this Agreement, and which shall be held in trust by Sandelin Law Office, to be paid to Seller, at Closing (as such term is defined below), pursuant to the terms and conditions of this Agreement. 2.2 Payment at Closing. Buyer shall pay Forty-five thousand and No/100 Dollars ($45,000.00)by cashier's check or wire transfer of U.S. Federal Funds to be received in the trust account of Sandelin Law Office, on or before the Closing Date. Seller shall finance the remaining balance of One hundred thousand and No/100 ($100,000.00)with five percent(5%)interest according to the terms outlined in Promissory Note and Mortgage to be executed at closing. 3. Closin . The closing of this transaction shall take place at Sandelin Law Office no later than ten (10) days after Buyer has completed its due diligence and satisfied the Conditions Precedent set forth in Paragraph 8 hereof. Buyer shall have until no later than August 15, 2007 (subject to Buyer's extension rights, as hereinafter set forth) to satisfy these Conditions Precedent; and if Buyer does not give Seller notification of satisfaction thereof by 5:00 p.m., on said date, then this Agreement shall expire and have no further cause or effect; and all Earnest Money (and Extension Money, if applicable) shall be returned to Buyer,together with any interest thereon. Buyer may extend the time for satisfaction of the Conditions Precedent by two (2) additional one (1) month periods. Such right to extend shall be exercised, if at all, by delivering written notice to Seller in the manner allowed by this Agreement no later than 5:00 p.m. on August 15, 2007. 4. Representations, Warranties and Covenants of Seller. Seller does hereby covenant, `-' warrant and represent to Buyer as follows: