Contracting for Forest Carbon : Elements of a Model ... - Forest Trends

Wrapping Up: Signaturesand AnnexesSignaturesTo signify their understanding and mutualagreement, the parties must sign the agreement.A dedicated signatures page is generallyprovided for that purpose. In mostcircumstances, the agreement becomes effectivewhen the last party to sign the agreement signs.This is the date that should appear in theintroductory clause.Box 19. Sample signature block.The parties are signing this agreement on thedate stated in the introductory clause.By:By:SELLER REPRESENTATIVE ASSNNameTitleNameTitleINVESTOR CORPIf a party is an organization or entity, itssignature line should begin with “By”(shorthand for “By its duly authorizedsignatory”) to indicate that the signatory is notsigning in his or her personal capacity.• A description of the project area.• Payment account information and advancepayment schedule.• Land use grant showing that participatinglandholders have requisite rights in theproject area.• Agreement authorizing the sellers’representative to representsellers/participating landholders and tooversee project governance and benefitdistribution.The project plan is a very important part of thepurchase agreement. It describes what activitieswill be undertaken and by whom, how theproject will be governed, and how revenues willbe disbursed to participating landholders,among other things. A sound project planassures buyers that the project will be governedfairly and transparently, with equitable benefitsharing,and that the project is likely to generateVERs.A precise description of the legal boundaries ofthe project area, specification of the paymentaccount, and payment schedules, are similarlyincluded in an annex because they would beunwieldy in the body of the agreement.In comparison, the land grant and agreementwith the sellers’ representative do not properlybelong in the body of the agreement in any case.Rather, they are provided as evidence to thebuyer that certain legal rights and safeguardsexist.AnnexesImportant background information, templates,and information that would be unwieldy toinclude in the body of the agreement are oftenincluded as annexes or attachments to theagreement. In the sample agreement, thefollowing documents are attached to theagreement:• The project plan.Contracting for Forest Carbon | 22