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Ordinance No. 8,747991028 -19 ORDINANCE NO. 8747 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, AUTHORIZING AN EARNEST MONEY CONTRACT WITH LEX HOCHNER, JR., OR HIS ASSIGNS, FOR THE PRIVATE SALE OF PROPERTY LOCATED IN BAYTOWN, HARRIS COUNTY, TEXAS, PREVIOUSLY FORECLOSED ON BY THE CITY OF BAYTOWN FOR DELINQUENT AD VALOREM TAXES; APPROVING AS AUTHORIZED ALL PREVIOUS ACTIONS TAKEN BY THE CITY OF BAYTOWN CONCERNING THE FORECLOSURE OF THE CITY'S TAX LIEN ON THE PROPERTY AND THE CONVEYANCE OF THE PROPERTY; AUTHORIZING THE MAYOR TO EXECUTE A DEED WITHOUT WARRANTY CONVEYING THE SAME; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. *********************************************** * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** WHEREAS, the following properties were the subjects of a delinquent tax lawsuit; being Cause No. 99- 06855, in the 61st Judicial District Court of Harris County, Texas; and WHEREAS, a judgment and decree of sale were rendered in the aforesaid cause in favor of the City of Baytown, Harris County, Goose Creek Consolidated Independent School District and Lee College District; and WHEREAS, as a result of a certain order of sale issued on the above - referenced judgment and decree of sale, the above - referenced property was struck off to the City of Baytown for the use and benefit of itself and Harris County, Goose Creek Consolidated Independent School District and Lee College District; and WHEREAS, by a deed recorded in the deed records of Harris County, the above - referenced property was transferred to the City of Baytown, for the use and benefit of itself, Harris County, Goose Creek Consolidated Independent School District and Lee College District; and WHEREAS pursuant to Section 34.05 of the Texas Property Tax Code, the City of Baytown negotiated a private sale of the subject property; and WHEREAS, the purchase price of the property subject to this ordinance is equal to the total amount of the judgment against the property; and WHEREAS, the grantee herein named has tendered to the City of Baytown earnest money totaling TEN THOUSAND AND NO 1100 DOLLARS ($10,000.00) along with an earnest money contract specifying a total purchase price of SIX HUNDRED FORTY -FOUR THOUSAND FOUR HUNDRED EIGHTY -EIGHT AND 56/100 DOLLARS ($644,488.56), which amount satisfies the requirements of both Section 34.05 of the Texas Property Tax Code and Section 52, Article III of the Texas Constitution; NOW THEREFORE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS: 991028 -19a 0 Section 1: All matters and facts set forth in the recitals hereinabove are found to be true, and are approved as the findings of the City Council of the City of Baytown. Section 2: That the City Council hereby confirms, approves and authorizes all actions taken by the City Administration in initiating the aforementioned lawsuit to collect the delinquent taxes that had accrued against such property, and the foreclosure of liens on the same pursuant to the judgment that was obtained in the above - described lawsuit. Section 3: That the City Council of the City of Baytown hereby further authorizes and approves and confirms the City Administration's actions in negotiating a private sale concerning the above - referenced property and all other acts taken by the City Administration necessary to consummate the same. Section 4: That the City Council of the City of Baytown hereby authorizes the earnest money contract with Lex Hochner, Jr., or his assigns, which contract is marked Exhibit "A" and attached hereto and incorporated herein for all intents and purposes, concerning the sale of the following property located in Baytown, Harris County, Texas: HCAD Account No, „,,, � Properfy Buyer Sales Price .5306 undivided interest in Tract 1 and Tract 12R, Abstract 66 W Scott 0451460000275 totaling approximately 19.9970 acres, Lex Hochner, Jr., or his assigns $ 78,329.81 Abstract 842 H Whiting, Baytown, Harris County, Texas. 0 Spur 201 .4694 undivided interest in Tract 12, 0410220020030 totaling approximately 40.43 acres; Abstract 66 W Scott, Baytown, Harris Lex Hochner, Jr., or his assigns 212,431.53 County, Texas. 0 Decker .4694 undivided interest in Tract 1 and Tract 12R; Abstract 66 W Scott, 0451460000272 totaling approximately 19.9970 acres; Lex Hochner, Jr., or his assigns 253,827.01 Abstract 842 H Whiting, Baytown, Harris County, Texas. 0 Spur 201 .5306 undivided interest in Tract 12, 0410220020370 totaling 40.43 acres; Abstract 66 W Scott, Baytown, Harris County, Lex Hochner, Jr., or his assigns 99,900.21 Texas. 0 Decker Section 5: That the Mayor of the City of Baytown, Texas, is hereby authorized and directed to execute a Deed Without Warranty for the sale of the property pursuant to the earnest money contract. Section 6: This ordinance shall take effect immediately from and after its passage by the City Council of the City of Baytown. 2 991028 -19b ® INTRODUCED, READ and PASSED by the affirmative vote of the City Council of the City of Baytown this the 28"' day of October, 1999. '", a gg'4��' PETE C. ALFARO, ayor - 'A:TTEST: EILEEN P HALL, City Clerk APPROVED AS TO FORM: F c:klh202 \CityCouncil\ Ordinances\ Sal eotProperty@ PrivateSalew lEarnestMoneyContractBuschRanch 3 TEXAS ASSOCIATION OF REALTORS® COMMERCIAL UNIMPROVED PROPERTY EARNEST MONEY CONTRACT ® THIS FORM IS FURNISHED BY THE TEXAS ASSOCIATION OF REALTORS® FOR USE BY ITS MEMBERS. USE OF THIS FORM BY PERSONS WHO ARE NOT MEMBERS OF THE TEXAS ASSOCIATION OF REALTORS& IS NOT AUTHORIZED. &Texas Association of REALTORSV. Inc., 1995 1. PARTIES: THE CITY OF BAYTOWN, a Texas municipal corporation (Seller) agrees to sell and convey to LhX HUGHNER, JR., or his assigns (Buyer) and Buyer agrees to buy from Seller the Property described below. 2. PROPERTY: The real property situated in Harris County, Texas, described as follows or as described on attached exhibit All that certain tract or parcel of land more particularly described on Exhibit "A" attached hereto and made a part hereof for all purposes; together with all rights, privileges and appurtenances pertaining thereto, including any right, title, and interest of Seller in and to adjacent streets, alleys, and rights -0f -way. The property sold by this contract is called the "Property ". The metes and bounds description determined by the survey of the Property under paragraph 6(b) shall replace any exhibit describing the perimeter boundaries of the Property if it differs from the exhibit. �pU NOTICE: Any exceptions reservations or restrictions should be described in paragraph 11. 3. SALES PRICE: $644 �,8�.56 (a) Cash portion of Sales Price payable by Buyer ......................... . . $ (b) Sum of all financing described in paragraph 4 ........................... • (c) Sales Price (sum of (a) and ( b)] ........ ............................... $ f ,yy $644,488.56 The Sales Price 0 is t_] is not to be adjusted based upon a survey. (Note: If the Sales Price is not '��' to be adjusted based on a survey, disregard the remainder of this paragraph). If the Sales Pric S to be P" 4 \ adjusted based upon a survey, the Sales Price shall be calculated on the basis of $hA per \� O acre 0 square foot of O total area 0 net area. "Net area" is defined as the total area of the Property exclusive of any portion of the procemy lying in: 0 any public roadway; 0 any right of way or WN ment, except rights of way and easements providing utility services to the Property; and PA If the survey results in an adjustment of more than 10% of the S Price in 3(c), either party may terminate this contract by written notice to the other party within days after the terminating party receives the survey. If neither parry so terminates this contract or if the variance is 10% or less, the adjustment to the Sales Price shall be made: O in the cash portion payable by Buyer, 0 proportionately between the cash payable and any promissory notes executed at closing. 4. to dated Buyer's ini (TAR 031) 1 -1 -96 a c osing will be $ ment due after closing. Buyer's assumption of the existing EXHIBIT A Cotttptter t7ei— lad using AttoCartbaa ° v4.01 saRwere, from A=Reesy Products. Inc., 1060W. Pipeline, Safe 101. Hurst. TX 76033. (800) 372.1178 This irtYfift6on of AttoCOtvaa' is licensed for use to: John K Tyler. ana is not transferable. Use by others is a notation of federel copyrirXtt law trader Title 17 U.S.C. 4101. lo" Page 1 of 8 lokAAA C:V"9mm FIes%0Mn\WkFilesYwCvm3.000 pfiMed 10-20 -1999 Commercial Unimproved Earnest Money Contract concerning 60.69 7 /Acres of Land M/L ® principal balance of the assumed loan as. of the Closing Date varies from the loan balance stated abo the cash payable at closing shall be adjusted by the net amount of any variance; provided, if the al principal balance of all assumed loans varies in amount greater than $ at closing, either party may terminate this contract and the Earnest Money shall be refunded t uyer unless either party elects to eliminate the excess in the variance by an appropriate adju ant at closing. Buyer may terminate this contract and the Earnest Money shall be refunded to Buye the note holder on assumption requires: (i) Buyer to pay an assumption fee in excess of $ and Seller declines to pay such excess; (ii) an increase in the interest rate to more than %; or (iii) any other modification of the loan documents. A vendor's lien and deed of trust to se re assumption shall be required, which shall automatically be released on execution and delivery release by the note holder. If Seller is released of liability on any assumed note, the vendor's lien d deed of trust to secure assumption shall not be required. If assumption approval is required by t note holder, Buyer shall apply for assumption approval within days after the Effective e of this contract and shall make every reasonable effort to obtain assumption approval. Assu tion approval shall be deemed to have been obtained when the lender has determined that Buyer ' s satisfied all of lender's financial conditions (those items relating to Buyer's ability to qualify for sumption). If assumption approval is not obtained within days after the Effective Dat , this contract shall terminate and the Earnest Money shall be refunded to Buyer. ❑ (b) THIRD PARTY FINANCING: Buyer shall apply for a hird party first lien note of $ payable at Cl monthly ❑ qu erly ❑ intervals for not less than years with the initial interest ra not to exceed % per annum. Within days after the Effective Date of this co ct Buyer shall apply for all third parry financing and shall make every reasonable effort to obtain f ancing approval. Financing approval shall be deemed to have been obtained when the lender ha determined that Buyer has satisfied all of lender's financial conditions (those items relating to Bu v 's ability to qualify for approval of a loan). If financing approval is not obtained within ays after the Effective Date, this contract shall terminate and the Earnest Money shall be refunded t uyer. Each note to be executed hereunder shall be secured by vendor's and deed of trust liens. ❑ (c) SELLER FINANCING: At closing, Buyer shall xecute and deliver a promissory note (the Note) from Buyer to Seller of $ Jbearing % interest per annum and interest at the maximum rate of interest, but not to exc d the maximum rate of interest, per annum allowed by law on matured, unpaid amounts. The Note all be secured by vendor's and deed of trust liens and an assignment of leases payable at the ' ce designated by Seller. The Note U shall U shall not provide for liability (personal or corpor e) against the maker in the event of default. The Note shall be payable as follows: ❑ (1) In one payment due after the date of the Note with interest payable ❑ monthly ❑quarterly ❑ nnually ❑ ❑ (2) In ❑ monthly ❑ qua Fly ❑ annual ❑ installments of S ❑ including interest plus interest beginning after the date of the Note and continui at ❑ monthly ❑ quarterly ❑ annual ❑ intervals thereafter for when the entire balance of the Note shall be due and payable. ❑ (3) yinterestplus monthly ❑ quarterly ❑ annual ❑ installments for the first r(s) and thereafter in installments of S ❑ including interest beginning after the date of the Note and monthly ❑ quarterly ❑ annual ❑ intervals thereafter for when the entire balance of the Note shall be due and payable. Unle the parties agree otherwise, the most recent forms prepared by the State Bar of Texas shall be us for the Note and deed of trust required by this paragraph 4(c). The Note may be prepaid in whole o n part at any time without penalty. Any prepayments are to be applied to the payment of the Ok (TAR 031) 1 -1 -96 Page 2 of 8 Computer generated using AutoContract l v4.01 softwere, from AutoReeky Products, Inc., 1060 W. Pipeline, Suite 101, Hurst, TX 76053, (800) 371 -1178 C:\Progmm ResWCWln \MF'IesVrochne3.000 This instafation of AutoContract^ Is licensed for use to: John K Tyler, and is not transferable. Use by others is a violation of fedem] copyright law under Title 17 U.S.C. §101. printed 10- 20.1999 Commercial Unimproved Earnest Mcrey Contract concerning 60.687 Acres of Land iwL this contract. If an Owner Policy of Title Insurance is fumished, Buyer, at Buyer's expense, shall f ® Seller with a Mortgagee Title Policy in the amount of the Note at closing. If all or any part of the perty is sold or conveyed without prior written consent of the Seller, then the Seller at Sellers lon may declare the outstanding principal balance of the Note, plus accrued interest, to be imme • ely due and payable. The creation of a subordinate lien, any sale thereunder, any deed under eat or order of condemnation, any conveyance solely between the parties, the passage of title b ason of death of a maker or by operation of law shall not be construed as a sale or conveyar of the Property. In addition to the principal and interest installments, Buyer ❑ shall ❑ shall deposit with Seller a pro rata part of the estimated annual ad valorem taxes on the Property. If er deposits taxes with Seller, Buyer agrees that the tax deposits are only estimates and may b i ufficient to pay total taxes,'and Buyer agrees to pay any deficiency within 30 days after notice fr eller. If Buyer deposits taxes with Seller, Buyer's failure to pay the deficiency shall constitute efault under the deed of trust. If any superior lien holder on the Property is collecting escrow p ents for taxes, any requirement to deposit taxes with Seller shall be inoperative so long as pay s are being made to the superior lien holder. Any act or occurrence which would constitute de under the terms of any lien superior to.the lien securing the Note shall constitute a default and a deed of trust securing the Note. The Note shall include a provision for reasonable attorney' s if the Note is placed in the hands of an attorney for collection. ❑ (d) CREDIT APPROVAL ON ASSUM ON OR SELLER FINANCING: Within days after the Effective Date of this contra ,Buyer shall deliver to Seller. El credit report C] verification of employment, including sa verification of funds on deposit in financial institutions; ❑current financial statement; a to establish Buy creditworthiness for assumption approval or seller financing. If Buyer's documentation of delivered within the specified time, this contract shall terminate and the Earnest Money shall refunded to Buyer. If Buyer's documentation is timely delivered, and Seller determines in Seller' ole discretion that Buyer's credit is unacceptable, Seller may terminate this contract by writte otice to Buyer within days after expiration of the time for delivery and the E< st Money shall be refunded to Buyer. If Seller does not so terminate this contract within the time 5_ EARNEST MONEY: Buyer shall deposit S 10,000.00 as Earnest Money with Reid, Strickland & Gillette— (Escrow Agent) at o ing roo Baytown, rX 7 7521 giddress) on the Effective Date of this contract. The Earnest Money shall be deposited in an interest ❑ non - interest bearing account in a federally insured financial institution chosen by Escrow Agent and any interest shall be credited to Buyer. If Buyer fails to deposit the Earnest Money as required by this contract, Buyer shall be in default. 6. TITLE POLICY AND SURVEY: Buyer's (a) TITLE POLICY: Seller shall fumish to Buyer ai"'Texpense an Owner Policy of Title Insurance (the Title Policy) issued by Stewart Title Company (the Title Company) in the amount of the Sales Price, dated at or after closing, insuring Buyer against loss under the provisions of .he Title Policy, subject only to those title exceptions permitted by this contract, or as may be approved by Buyer in writing, and the standard printed exceptions' contained in tIg promulgated form of Title Policy: provided however that: (1) the exception as to are nd boundaries shall ❑ shall not be deleted except for any shortages in area at the expense of a Buyer ❑ Seller, and (2) the exception as to restrictive covenants shall be endorsed "None of Record ", unless restrictions are approved by Buyer. Within 15 days after the Tthe Company receives a copy of this contract Seller shall fumish Buyer a commitment for Title Insurance (the Commitment) including copies of recorded documents evidencing title exceptions. Seller authorizes the Title Company to deliver th� SCommitment and related documents to Buyer at Buyer's address. Buyer shall have days after receipt of the Commitment and legible copies of documents evidencing title exceptions required by this contract to object in writing to matters disclosed in the Commitment other than the standard printed exceptions as described or limited in this paragraph. (TAR 031) 1 -1 96 Page 3 of 8 W 101-miel" 'ampler generated using AutoConrract" rs.01 software, !rom AtloRealy Proaucts. :nc.. !060W. Pioeine. Suite 101. Hurst. TX 7605]. (800) :::•1178 C:Varogrem FilesWC+Mn1Wl�lesVlorine3.000 ?+s u�aution of AutoCzn"ct" is kensed for use lo: JoM K. Tyler• and is not aansteretlle. Use by atners Is a v otetlon of federel Copyngrs lard •rder Tilb 17 'U S.C. 1101. Printed 10-20 -1999 Commercial Unimproved Earnest Money Contract concerning 60.697 Acres of Land MIL U (bb) SURVEY REQUIRED: (Check (1) or ((2) only) ® l:] (1) Within 60 days after. (5 Effective Date of this contract; Q the date by which Buyer is y required to complete inspections, studies or assessments in paragraph 7(b); (check (r) or (ii) only) U (i) Buyer may obtain a survey of the Property at Buyer's expense. (ii) Seiler, at Seller's expense, shall furnish to Buyer a survey of the Property dated after the Effective Date of thlj(w,v s,�ontraGt.1` �o`ti 10.1 Buyer may, within 3 0 days after Buyer's receipt of the survey object in writing to any matter which constitutes a defect or encumbrance to title on the survey or if the survey shows any part of the Property to lie in a 100 -year floodplain area. Q (2) Within days after the Effective Date of this contract, Seller shall furnish Buyer a true and correct copy of Seller's existing survey of the Property dated The survey [check (i) or (ii)J: (t) Q shall be recertified no earlier than at the expense of Q Buyer Q Seller, (ii) O shall not be recertified. Within days after Buyer receives a copy of the survey or after Buyer receives a copy of the recertified survey, whichever is later, Buyer may object in writing to any matter shown on the survey which constitutes a defect or encumbrance to title or if the survey shows any part of the Property to lie in a 100 -year floodplain area. The survey required by this paragraph 6(b) shall be made by a Registered Professional Land Surveyor acceptable to the title company and any lender. The survey shall: (() identify the Property by metes and bounds or platted lot description; (ii) show that the survey was made and staked on the ground with comers permanently marked; (iii) set forth the dimensions and total area of the property; (iv) show the location of all improvements, highways, streets, roads, railroads, rivers, creeks, or other waterways, fences, easements, and rights of way on the Property with all easements and rights of way referenced to their recording information; (v) show any discrepancies or conflicts in boundaries, any visible encroachments, and any portion of the Property lying within the 100 year floodplain as shown on the current Federal Emergency Management Agency map; and (vi) contain the surveyor's certificate that the survey is true and correct. Buyer's failure to object under paragraph 6(a) or 6(b) within the time allowed shall constitute a waiver of Buyer's right to object except that the requirements in Schedule C of the Commitment shall not be deemed to have been waived. If objections are made by Buyer, or any third party lender, Seller shall cure the objections within 20 days after the date Seller receives them. The Closing Date shall be extended as necessary to cure objections. If objections are not cured by the extended Closing Date, this contract shall terminate and the Earnest Money shall tie refunded to Buyer unless Buyer elects to waive the objections. 7. PROPERTY CONDITION /FEASIBILITY STUDIES: (Check (a) or (b) only) Q (a) PRESENT CONDITION: Buyer accepts the Property in its present "as -is" condition. (b) INSPECTIONS AND FEASIBILITY STUDIES: Within 90 days after the Effective Date of this contract Buyer, at Buyer's expense, may complete or cause to be completed inspections of the Property (including any improvements) by inspectors of Buyer's choice. Inspections may include but are not limited to: (i) physical property inspections; (ii) economic feasibility studies; and (iii) any type of environmental assessment or engineering study including the performance of tests such as soils tests or air sampling. Seller shall permit Buyer and Buyers inspectors access to the Property at reasonable times_ If Buyer determines, in Buyer's sole judgment, that the Property is not suitable for any reason for Buyer's intended use or is not in satisfactory condition, then Buyer may terminate this contract by providing written notice of termination and copies of all reports of inspections, studies, or assessments completed or caused to be completed by Buyer under this paragraph to Seller within the time required to complete the inspections, studies, or assessments uTd6rdhis paragraph, and the Earnest Money shall be refunded to Buyer less the sum of $ 1 u U to be retained by Seller as independent consideration for Buyer's right to terminate under this paragraph. If Buyer does not terminate this contract within the time required any objections with respect to the inspections, studies, and assessments under this paragraph shall be deemed waived by Buyer. If this contract does not close through no fault of Seller, Buyer shall restore the Property to its original condition if altered due to (TAR 031) 1 -1 -96 A Page 4 of 8 A.. 1101%len -arnpuer generated Using AtaoC Wnct" A.01 software. from AuoReeiry products. im. 1060 W. Pipeline. SUte 101, Hum, TX 75053, (800) 372.1178 C!Progam FIesWCMn %W�lesyl,lchne3.000 'Ms instetetlon of AuoContrsct" is licensed for use to: John iC Tyler. and is not Irensfeeale. Use try ottlan is a hoiation of federal copyrigrt law wider Title 17 U.S.C. 5101. printed 10.20.1999 �J L� Commercial Unimproved Earnest Money Contract concerning 60.697 Acres of Land MIL inspections, studies, or assessments completed by Buyer or Buyer's inspectors. (Listing Broker): ❑ represents Seller only; ❑ acts as intermediary between Seiler and Bu o her broker represents: ❑ Seller as Listing Broker's Subagent; ❑ Buyer only. Salle y Listing Broker (choose only one): ❑ (a) the fee specified by separate agreement between er and Seller. ❑ (b) a total cash fee of either $ or % of the total Sales Price in County, Texas on closing of this sale, which Escrow A e ay from Seller's proceeds of the sale. If Seller defaults, the cash fee shall be due and In full. If Buyer defaults, Escrow Agent is authorized to pay Listing Broker one -half of any 9. CLOSING: (a) The closing of the sale shall be on or before ' 120 days after the Effective Date or within 7 days after objections to title or the survey have been cured, whichever date is later (the Closing Date); however, if financing or assumption approval has been obtained pursuant to paragraph 4, the Closing Date shall be extended up to 15 days only if necessary to comply with lender's closing Instructions (for example, survey and closing documents). If either party fails to close this sale by the Closing Date, the non - defaulting party shall be entitled to exercise the remedies contained in paragraph 15. (b) At closing Seller shall furnish, at Seller's expense (strike any not to be famished): (1) tax statements showing no delinquent taxes on the Property; (2) an assignment of all es to or on the Property duly executed by Seller,, x tit of wlthQ.ut warranty 0& (3) a ❑ General �] Deed conveying good and Indefeasible title to the Property showing no additional exceptions to those permitted In paragraph 6; and (4) evidence that the person executing this contract is legally capable and authorized to bind Seller. 10. POSSESSION: Seller shall deliver possession of the Property to Buyer on Funding in its present condition. Any possession by Buyer prior to c!osing or Seller after closing that is not authorized by a separate written lease agreement. shall establish a landlord- tenant at sufferance relationship between the parties. 11. SPECIAL PROVISIONS: (TAR 031) 1 -1 -96 Compeer generated usm0 ALAoCOM8at^ v4.01 software. from AutoReety Products, Inc.. 1060W. PIpaine, Site 101, Hursi. TX 76053, (800) 371 -1178 This utsakdon of AreoComact" is Icensed for use to: Jahn K. Tyler, and is not transferable. Use try odes is a violation of federal covogts law under Title 17 U.S.C. 4101. Page 5 of 8 \olulaa C: rogmt RWs%CWlnkVA(F ftchne3.000 "ad 10- 20.1999 Commercial Unimproved Earnest Money Contract concerning 60.697 Acres of Land MIL 12. SALES EXPENSES: To be paid in cash at or prior to closing: is(a) Seller's Expenses: Releases of existing liens, including prepayment penalties and recording fees; release of Seller's loan liability; tax statements or certificates; preparation of deed; one -half of escrow fee; and other expenses stipulated to be paid by Seller under other provisions of this contract. (b) Buyer's Expenses: All loan fees or expenses (e.g., fees for application, origination, discount, appraisal, assumption, recording, tax service, mortgagee title policies, credit reports, document preparation and the like); preparation and recording of deed of trust to secure assumption; required premiums -for insurance; interest on all periodic installment payment notes from date of disbursements to one payment period prior to dates of first periodic payments; one -half of escrow fee; fees for copies and delivery of title commitment and related documents; and other expenses stipulated to be paid by Buyer under other, provisions of this contract. 13. PRORATIONS AND ROLLBACK TAXES: (a) , current taxes, and any rents shall be prorated through the Closing Date. If the amount of the ad valorem taxes for the year in which the sale is closed is not available on the Closing Date, proration of taxes shall be made on the basis of taxes assessed in the previous year. vilito (b) If this sale or use of the Property after closing results in the assessment�f additional taxes for periods prior to closing, the additional taxes shall be the obligation of D Buyer Seller. Obligations imposed by this paragraph shall survive closing. 14. CONDEMNATION: If prior to closing condemnation proceedings are commenced ggainst any portion of the Property, Buyer may: (a) terminate this contract by written notice to Seller within days after Buyer is advised of the condemnation proceeding and the Earnest Money shall be refunded to Buyer; or (b) appear and defend in the condemnation proceeding and any award in condemnation shall, at Buyer's election, become the property of Seller and the sales price shall be reduced by the same amount or shall become the property of Buyer and the sales price shall not be reduced. 15. DEFAULT: If Buyer fails to comply with this contract, Buyer shall be in default. Seller may either: enforce specific performance, or terminate this contract and receive the Earnest Money as liquidated damages, thereby releasing the parties from this contract. If Seller is unable without fault to deliver the Commitment within the time allowed, Buyer may either terminate this contract and receive the Earnest Money as the sole remedy or extend the time for performance up to 15 days and the Closing Date shall be extended as necessary. If Seller fails to comply with this contract for any other reason, Seller shall be in default and Buyer may either enforce specific performance, or terminate this contract and receive the Earnest Money, thereby releasing the parties from this contract. 16. ATTORNEY FEES: If, Buyer, Seller, Listing Broker, Other Broker, or Escrow Agent is a prevailing party in any legal proceeding brought under or with relation to this contract or this transaction, such party shall be entitled to recover from the non - prevailing parties all costs of such proceeding and reasonable attorney fees. The provisions of this paragraph shall survive closing. 17. ESCROW: If either party makes demand for the payment of the Earnest Money, Escrow Agent has the right to require from all parties and brokers a written release of liability of Escrow Agent for disbursement of the Earnest Money. Any refund or disbursement of Earnest Money under this contract shall be reduced by the amount of unpaid expenses incurred on behalf of the party receiving the Earnest Money, and Escrow agent shall pay the same to the creditors entitled thereto. At closing, the Earnest Money shall be applied first to any cash down payment, then to Buyer's closing costs and any excess refunded to Buyer. Demands and notices required by this paragraph shall be in writing and delivered by hand delivery or by certified mail, return receipt requested. LJ (TAR 031) 1 -1 -96 L.6 of 8 (i .Ia Computer generated using Autc,Ccntrect° v4.01 saflware, from AutoReelty Praclucts, Inc.. 1060 W. Pipeline, Suite 101, Hurst, TX 76053, (600) 322.1178 C:1Program Ftes%CNAn\WkFles\harhne3.000 TNs installation of AutoContractl is licensed for use to: John K. Tyler, and is not transferable. Use by others is a miatian of federal copyright law under Title 17 U.S.C. §101. pilled 10.20 -1999 Commercial Unimproved Earnest Money Contract concerning 60.697 Acres of Land M/L 18. MATERIAL FACTS: (a) Seller shall convey the Property on closing: (i) with no liens, assessments, or other security interests against the Property which will not be satisfied out of the Sales Price unless securing payment of any loans assumed by Buyer; (ii) without any assumed loans in default; and (iii) with no parties in possession of any portion of the Property as lessees, tenants at sufferance, or trespassers except tenants under the written leases delivered to Buyer pursuant to this contract. Property Condition Statement. O (ii) Seller is not aware of any environmental hazards or conditions affectin operty which would violate any federal, state or local statutes, regulations, ordinance er requirements and more specifically, but without limitation, whether: (1) the Prop or has ever been used for the storage or disposal of hazardous substances or m or toxic waste, a dump site or landfill, or the housing of any underground tanks or dr any geological faults (surface or subsurface) lie on the Property: (31 wetlands, ed by federal or state law or regulation are on the Property: and (4) threatened angered species or their habitat, as defined by the Texas Parks and Wildlife De or the U.S. Fish and Wildlife Service, are on the property; except as follows: 19. NOTICES: All notices shall be in writing and effective when hand - delivered, mailed by certified mail return receipt requested, or sent by facsimile transmission to: Buyer at Seller at 1201 Mcuuffie #142 2401 Market Street Houston, I X 7 7019 8aytowa, Phone Phone Fax ki I al Fax 140 if 42.0-8586 I+ *1a 21 FEDERAL_ TAX REQUIREMENT: If Seller is a "foreign person ", as defined by applicable law, or if Seller fails to deliver an affidavit that Seller is not a "foreign person ", then Buyer shall withhold from the sales proceeds at closing an amount sufficient to comply with applicable tax law and deliver the same to the Internal Revenue Service, together with appropriate tax forms. Internal Revenue Service regulations require filing written reports if cash in excess of specified amounts is received in the transaction. related to this contract that submitted to mediati spute snail oe on and a mutually acceptable mediator 22. AGREEMENT OF THE PARTIES: This contract shall be binding on the parties, their heirs, executors, representatives, successors, and assigns. This contract shall be construed under and in accordance with laws of the State of Texas. This contract contains the entire agreement of the parties and cannot be changed except by written agreement. If this contract is executed in a number of identical counterparts, each coup�erpart is deemed an original and all counterparts shall, collectively, constitute one agreement. Buyer ( may 0 may not assign this contract. If Buyer assigns this contract Buyer shall be relieved of any future liability under this contract only if the assignee assumes in writing all obligations and liability of Buyer under this contract. Addenda which are part of this contract are: N/A 23. TIME: Time is of the essence in this contract. Strict compliance with the times for performance stated in this contract is required. 24. EFFECTIVE DATE: The Effective Date of this contract for the purpose of performance of all obligations shall be the date this contract is receipted by the Escrow Agent after all parties have executed this contract. (TAR 031) 1 -1 -96 P nof�(//8 Computer generated using AutoContract- A.01 software, from AutoRealty Products, Inc., 1060W. Pipeline, Suite 101, Hurst, TX 76053, (800) 371.1178 C:\Progrem les C1 f ls%ochne3.000 This Installadon of AutoConlract^ Is licensed for use to: John K. Tyler, and is not transferable. Use by others is a violation of federal copyright law under Title 17 U.S.C. §101. pAnted 10- 20.1999 L Commercial Unimproved Earnest Money Contract concerning 60.697 Acres of Land M/L 25. MISCELLANEOUS: (a) Buyer should have an Abstract covering the Property examined by an attorney of Buyer's selection, or Buyer should be furnished with or obtain a Title Policy. (b) If the Property is situated in utility or other statutorily created district providing water, sewer, drainage, or flood control facilities and services, Chapter 50 of the Texas Water Code requires Seller to deliver and the Buyer 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. (c) If the Property adjoins or shares a common boundary with the tidally influenced submerged lands of the state. Section 33.135 of the Texas Natural Resources Code, requires a notice regarding coastal area property to be included in the contract. (d) Buyer should not rely upon any oral representations about the Property from any source. Seller and any broker have no knowledge of any defects in the Property other than what has been disclosed in this contract or other writing. (e) Brokers are not qualified to render property inspections, surveys, engineering studies, environmental assessments, or inspections to determine compliance with zoning, governmental regulations, or laws. Buyer should seek experts to render such services. Selection of inspectors and repairmen is the responsibility of the Buyer and not the Broker. 26. CONTRACT AS OFFER: The execution of this contract by the first party constitutes an offer to buy or sell the Property. Unless accepted b the other party by 5:00 p.m. (in the time zone in which the Property is located) on November 11 , 199 the offer shall lapse and be null and void. This is intended to be a legally binding contract. READ IT CAREFULLY. NO REPRESENTATION OR RECOMMENDATION IS MADE BY BROKER OR ITS AGENT OR ITS EMPLOYEES AS TO THE LEGAL SUFFICIENCY, LEGAL EFFECT, OR TAX CONSEQUENCES OF THIS DOCUMENT OR TRANSACTION. CONSULT YOUR ATTORNEY BEFORE SIGNING. Buyer's iller H. Walsh Attorn 800 Jarp99 PI4515, uston Buyer ., or-is assigns Seller's Ignacio Ramirez, Sr. Attorney c/o Seller's Address Seller I HE CI IY 01F BAY I 0VVN, a I exas municipal c Seller a fee of $ or % of the Sales Price when the Listing Bro received. Escrow Agent is authorized and directed to pay Other Broker from Listing Broker's ing. This Agreement Between Brokers supersedes any prior offers and agreements for com e een Brokers. r Broker By: .e Listing Broker License No. By: RECEIPT On this Vy, , Escrow Agent acknowledges receipt of: (a) 6 Contract; and (b) n Earnest Money in the form of check Escrow Agent Reid, Strickland & Gillette By: Address: 1300 Rollingbrook, #407, Baytown, TX Phone: (TAR 031) 1 -1 -96 :0mputer generated using AutoContractm v4.01 sof "re, from AutoReeay Products, Inc.. 1060 W. Plpellne, Suite 101, Hurst, TX 76053, (000) 372.1170 'Ns installation of AutaContract ° is licensed for use to: John K. Tyler, and is not transferable. Use by others is a violation of federal copyright law under Title 17 U.S.C. §101. Pap2p of 8444444 ii��II C:Tnogram Fles 1lIesVwchne3.000 printed 10. 20.1999 C EXHIBIT f XII Boing 60.697 acres (J< r �Pe3 ► 9.7� square feet) of land out or this William Scott Upper Leagu®. A-66, and out Of the of Whiting Survey, A-B40, Harris County, TeXMS, being out of a ]4 ='k 81 tract le No f K- land as x42631, rFilmdCodenNo. Harris County C . Real Property Records. 028 -12 -0395 of the Barrie County R and being out or a 60.349 -acre t;raat of land as recorded m K O Code under Harris County clerk's r being more No. 028 -72 -0387. 7�aare tract particularly dAaoriDed by metes and bounds as follows: BEGINNING at a 5/A -inch iron rod found in tho 330 northeaaterly right-of 3.in® ° coiner of sad 47.061' (width varies for the wcs�terly corner of said tract Acre tract, and for the westerly herein described; THENCE North 31 deg. 22 min. 54 Sec. East With a southeasterly line of an Exxon Company U. S.;A. 1466.44- i V 413 of acre tract of land as recorded , a ldistanea of 1073.86 tha Harris County Dead Reeorda feet to a 5/5-inch it n roddescribed; act ro the northwesterly corner of said tract herein East with THENCE South 66 deg. 44 min. 3.2 sec. a southerly line of the residua of a inch iron - cre ttafor a distance of 495.33 feet to a S/ 8 a northeasterly eorndr of said tract herein described; THENCE South with a westerly Ling of the residua Of id 47. iro n tract, a distance of 222.64 feat to a sa 5 f id 47. iron rod set for an interior corner of said tract herein described; 413 %in- 23 sec Uast THENCE Souto=d g. residua of &aid 47 081- oars southwesterly line ass the common line tract, at a digtanee of 329.9s feet p with of said 47.081 -acres tract total d1s no dofo721- 93.c feet rtota and continuing for 5/9 -inch iron rod got for-an angle P oint or saj.d tract herein described; Tt1LNC8 south ZO deg. 05 rnin. 59 sec. East with a westerly cal line 814.26 feresidue et to a 5�g in h iron rod [yet for a distance of an angle point of said tract herein described; r, THENCE South 20 deg. 46 min. 26 sec. East with a w @6t0rly ling of the' residua of /s- inch�ironarod got in a distance of 499.04 feot to a S/ State i the northerly rich touthea line corner id of said tract spur 330 for heroin deBCri,bed; THENCE in a gout dixoation hwah the northerly right -of -way line of said state H a4 radius 201 and with a curve to the le �dgha32� min. 48 sec., 2077.29 Zest, central angle chord Bearing w South 64 deg. 12 min- th of 56.07tfeat oto distance - 56.0 ? teat for a curve tang a gee -inch iron rod get for the point -of- tangency► from which a cone 6tm C di tan�a found ot 0.9 6 f 00th e' 0 deg. min, 51 sec. west continuing THENCE South 63 deg. 25 min. 65 sec. With the northerly right -of -Way lino of Said State Highway spur 2010x distantea of 26.96 feet to a Cana rete monument found Y P THENCE in a Noeterly direction continuing -with the northerly right -of -way line of said State Spur 201 and with a curve to right having s radius central angle - 48 deg. o2 min. 16 sac., chord beet, g- chord bearing South 87 de Z6 min. 53 sec west, distance - 666.33 feet for a curve length n of 686-23 to a SJa -inch iron rod sat for the p THENCE North 66 deg. h�1 min. .y 59 see- of tsai,d i6tate with the northerly ri4 Highway Spur 330, a distanGe of 1,91 feet to at ncrete monument found for tho beginning c. a non tang n THENCE in a northwesterly direction continuing With the northeasterly right- of-Way ling of ab'd Stat PHiguway Spur 330 and with a curve to the ri.ght having a 1432 39 feat central angle - 35 deg. 3D min. 00 Bee., chord bearing mi North 51 deg. 06 min. 39 sac. West, chord length 5 distance to a concrete 1nOnume t found for thand of caidcurve; THENCE North 33 dog. 21 min. 39 sec. West Continuing with the northeasterly right -of -way line of said Stato xighway Spur 330, a distance of nta sae tract: rh -inch j.ron rod sat for an angle p i dgmcribed; THENCE North 13 deg. o0 min. 37 sec. Woet continuing Wj.th the northaamtarly right- of -wny .line of said State' Ilighway spur 730, a distance of 269.04 feet to the POINT - OF- BEGINNING and containing 60..697 acres {2,643,977 era feet) of land. squ o