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Ordinance No. 10,106ORDINANCE NO. 10,106 • AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS, DIRECTING THE CITY MANAGER TO EXECUTE AND THE CITY CLERK TO ATTEST TO A FIRE PROTECTION AGREEMENT WITH CHAMBERS COUNTY IMPROVEMENT DISTRICT NO. l; AND PROVIDING FOR THE EFFECTIVE DATE THEREOF. r� BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS: Section 1: That the City Council of the City of Baytown, Texas, hereby authorizes the City Manager to execute and the City Clerk to attest to a Fire Protection Agreement with Chambers County Improvement District No. 1. Said agreement is attached hereto as Exhibit "A" and incorporated herein for all intents and purposes. Section 2: This ordinance shall take effect immediately from and after its passage by the City Council of the City of Baytown. INTRODUCED, READ and PASSED by the affirmative vote of the City Council of the City of Baytown this the 28`h day of July, 2005. 1 CALVIN MUNDINGER, Mayor ATTEST: G RY . SMITI-1, City Clerk APPROVED AS TO FORM: NACIO RAMIREZ, SR., C' Attorney R:\Karcn\Filcs\CiiyCouncillOrdinanccs\l-DU5Vuly 14\R:\Ka n \Film\City Council\Oolinance U005Vuly28\ FimPmtmtionAg= mcntwHarrisCountylmprovementDistriciNo Ldoc.doc • AGREEMENT FOR EMERGENCY PROTECTION SERVICES STATE OF TEXAS 5 COUNTY OF HARRIS S THIS AGREEMENT is made, entered into and effective as of the 1" day of August, 2005, by and between the CITY OF BAYTOWN, Texas, a municipal corporation located in Harris County and Chambers County, Texas (the "CITY "), and Chambers County Improvement DistrictNo. 1, (the "DISTRICT "), having a territory and facilities in Chambers County, Texas; and WHEREAS, the CITY will provide fire fighting support and backup protection to the DISTRICT's territory and facilities therein, but shall not be obligated to purchase any additional equipment or build any additional facilities in order to provide such support and backup protection, it being the intent of the parties that the level of protection be that which was being provided by the CITY as of the date of said Agreement, August 1, 2005; and WHEREAS the DISTRICT's territory includes real and personal property used in the logistics, warehousing, distribution, manufacturing, refining and chemical manufacturing, research, support, and office facilities used in direct support of these operations situated either contiguous thereto or separated by roads, which territory is more specifically identified in Exhibit "A," which is attached hereto and incorporated herein for all intents and purposes (hereinafter referred to as the "Territory"); and WHEREAS, the DISTRICT desires the CITY to provide fire fighting and rescue services to the Territory in support of which the DISTRICT shall make certain payments to the CITY to enable the CITY's Fire Department to improve fire fighting and rescue response capabilities; and NOW THEREFORE, in consideration of the promises and of the mutual covenants and agreements herein contained, the CITY and the DISTRICT agree as follows: The CITY will respond, at the request of the DISTRICT or landowners and tenants in the DISTRICT, with emergency services for fire, chemical and medical emergencies at the Territory which escalate above the incipient or internal response capability of the personnel of the landowners and tenants within the Territory, which services will be provided with reasonable promptness to the extent the equipment, facilities, personnel, training and other resources available to the CITY will, from time to time, permit. 2. The CITY represents that Exhibit "B," attached hereto is, to the best of its knowledge and belief, a complete listing of the CITY's fire and chemical protection equipment, facilities, materials, training, personnel and other emergency response resources, which, as of the effective date of this Agreement, may be utilized for response in the event of an emergency within the Territory as described herein. Upon the written request of the DISTRICT as described hereinbelow, the CITY shall amend Exhibit "B" annually to is reflect all such resources which have been acquired and/or retired during the CITY's prior fiscal year, irrespective of the source of such additional resources, including =9 A • purchases and acquisitions with funds from the Dedicated Fund defined in Paragraph 4. The CITY shall prepare this amended Exhibit "B" within sixty (60) days after the end of the CITY's fiscal year, in each Contract Year during the term or terms hereof and shall provide to the DISTRICT a copy of 'each such amended Exhibit "B" within thirty (30) days after the DISTRICT makes a written request therefor. 3. The CITY's Rules and Regulations for Baytown Fire and Rescue Services and Operations Manual ( "Standard Operating Procedures ") governing the response to the various emergencies, in conjunction with the availability of resources, shall dictate the CITY's initial response to emergency situations reported by the DISTRICT to the CITY. The Chief of the CITY's Fire Department or the senior Fire Officer on the scene, i.e., the Incident Commander, shall, with the assistance and cooperation of plant/facility officials within the Territory and analysis of the stand -by resources required, determine the level of additional CITY, Channel Industries Mutual Aid ( "CIMA ") and/or other outside response required. 4. The DISTRICT shall make annual payments to the CITY during the term or terms of this Agreement, as provided in this Paragraph. All funds represented by such payments shall be set aside and maintained by the CITY in a segregated, dedicated fund (hereinafter referred to as the "Dedicated Fund ") dedicated solely for the improvement of fire fighting and/or hazardous materials response capabilities as determined by the Chief of the Fire Department after consultation with the DISTRICT ( "Equipment and Training ") for the use solely by the CITY in performing its fire, chemical and medical emergency response services, including those services which will be performed under the terms of this Agreement. For the services required to be rendered herein, the DISTRICT shall pay no less than ONE HUNDRED FIFTY THOUSAND AND N01100 DOLLARS ($150,000.00), excluding reimbursable expenses required herein, in each year of the term of this Agreement, adjusted as provided hereinafter, for so long as this Agreement shall remain in effect, subject to (1) the reopener as provided for herein and (ii) the funds being used in a manner consistent with this Agreement. The amount of each such payment after the first Contract Year, as defined in Paragraph 7 hereof of this Agreement shall be increased in an amount equal to the percentage increase in the Consumers Price Index of the region in which Texas is located (the "CPI ") during the last three calendar months in the Contract Year immediately preceding the current Contract Year (the current Contract Year is the Year during which such payment is to be made over the CFI for the Base Year). The CPI shall mean and refer to the final regional consumers price index reported. Either the CITY or the DISTRICT may reopen this Agreement for Contract Years 3, 5, 7, 9, if applicable, for the sole purpose of negotiation of service costs due to additional development in the Territory or other changes that affect service delivery. Any party reopening this Agreement shall notify the other part in writing. Such notice shall include a detailed list of the modifications or changes desired and supporting documentation and must be received by the other party at least 120 days prior to July 31 of the applicable • Contract Year. Upon receipt of the notice, the negotiations shall commence. It is expressly understood and agreed that nothing herein shall be construed to allow any other provision of this Agreement to be reopened. This section only allows the parties to reopen the compensation provision of this Agreement for the years stated hereinabove. If the Agreement is reopened pursuant to this section, it is expressly understood and agreed that until a new agreement concerning the opened section is reached the opened section as specified in the Agreement will be in full force and effect and will be binding upon the parties hereto. If the parties do not reach agreement on the revised service cost by July 31, either party may terminate this Agreement upon giving the other one hundred eighty (180) days written notice of its desire to terminate this agreement. The payment for each Contract Year will be made in four (4) equal installments on the first (1st) day of August, November, February and May of such Contract Year. Failure of the DISTRICT to make payments in a timely manner will be considered a material breach of this Agreement and will result in interest in the amount of 1% per month being accessed on all delinquent amounts. Additionally for such a material breach, the CITY, in its sole discretion, shall have the right, but not the obligation, (1) to suspend services until the DISTRICT makes payment in full or (ii) to terminate this Agreement. In the event of suspension or termination, the CITY shall provide the DISTRICT written notice of the same. 5. The DISTRICT agrees that in receiving assistance from the CITY or other CIMA members, the DISTRICT shall replace material used, and shall repair or replace equipment lost or damaged in the control of a fire or emergency situation within the Territory, in cash based on current replacement cost or in kind, in the same manner as specified in Section 2.6 of the CIMA Bylaws adopted August 18, 2004, unless otherwise specified herein, which bylaws are by this reference incorporated herein by this reference for all intents and purposes. Reimbursement of damaged or lost equipment is required without regard to the cause or causes thereof (including damage or loss caused by preexisting conditions) or the negligence of any party or parties, including, but not limited to the owner, the operator, the CITY and any CIMA member, as well as their respective officers, agents or employees, whether such negligence be sole, joint or concurrent active or passive. Material used includes, but is not limited, to, fire fighting foam, hazardous materials containment or absorbent materials and chemical protective clothing and equipment. Reimbursement of monies expended is required without regard to the cause or causes thereof or the negligence of any party or parties, whether such negligence be sole, joint,,or concurrent, active or passive. The obligations in this Paragraph 5 shall be in addition to and shall remain in effect notwithstanding termination of the payments described in Paragraph 4 or the termination of this Agreement. The reimbursements required pursuant to this Paragraph 5 shall be due within thirty (30) days after the CITY renders the services resulting in the DISTRICT's obligation to replace material used, and/or to repair or replace equipment lost or damaged in the control of a fire or emergency situation within the Territory. Failure of the DISTRICT to make payments in a timely manner will be considered a material breach of this Agreement and will result in interest in the amount of 1% per month being accessed on all delinquent amounts. Additionally, for such a material ® breach, the CITY, in its sole discretion, shall have the right, but not the obligation, (1) to suspend services until the DISTRICT makes payment in full or (ii) to terminate this ® Agreement. In the event of suspension or termination, the CITY shall provide the DISTRICT written notice of the same. 6. The DISTRICT understands and agrees that should the CITY seek assistance from CIMA for fire - fighting, rescue, Hazmat and/or medical manpower and facilities or any other assistance in an emergency situation within the Territory, the DISTRICTshall sign a CIMA Non - member Emergency Incident Assistance and Reimbursement and Indemnification Agreement (the "CIMA Agreement ") and shall abide by the terms thereof. Should the DISTRICT fail for any reason to sign the CIMA Agreement, the DISTRICT shall still be responsible for all expenses the CITY incurs in complying with Section 2.6 of the CIMA Bylaws, passed on August 18, 2004. The DISTRICT understands and agrees that all CIMA reimbursement costs incurred by the CITY, for whatever, reason shall be borne by the DISTRICT. Should any of the provisions of this Agreement conflict with the terms of the CIMA Agreement, irrespective of whether the DISTRICT signs such agreement, those provisions providing the most protection to the CITY, as determined by the CITY, shall control. ALL PROVISIONS CONCERNING REIMBURSEMENT OBLIGATIONS UNDER THIS AGREEMENT SHALL SURVIVE THE TERMINATION OR EXPIRATION HEREOF. 7. The term of this Agreement shall commence on the effective date of this Agreement and shall continue for an initial term of six (6) years from such date ( "Initial Term "), unless terminated pursuant to Paragraph 4 or 5 hereinabove. Following the Initial Term, this Agreement may be renewed for an additional four -year term upon agreement of the parties. Each year during the Initial Term and any successive term of this Agreement, commencing on August 1 of each year and ending July 31 of the following year, shall be deemed a "Contract Year" hereunder. 8. The parties understand and agree that the suspension or termination of this Agreement for any reason has no effect on any Industrial District Agreement between the CITY and the any entity lying within the Territory. All such agreements shall remain in full force and effect pursuant to its term and conditions thereof. 9. The parties understand and agree that this Agreement shall remain in full force and effect pursuant to its terms and conditions, throughout the term or terms hereof; provided, however, that if: (a) the CITY and/or the DISTRICT are unsuccessful in preventing an annexation or incorporation by another municipality or (b) the CITY annexes a portion of the Territory, the CITY or the DISTRICT may, in its sole discretion, terminate this Agreement only for that portion of the Territory affected by the annexation or incorporation at any time after the effective date of such annexation or incorporation. The DISTRICT may terminate ® this Agreement on one hundred eighty (180) days notice if it determines, in good faith, ® that the CITY is not providing an adequate level of fire, chemical and medical emergency services to the DISTRICT. 10. In the event the terms and conditions of this Agreement are rendered ineffective or that their effect is changed by the constitution, any Legislative changes, or any interpretation of Texas law, both parties agree that this Agreement shall be renegotiated to accomplish the intent and purposes of this Agreement. 11. THE DISTRICT AGREES TO INDEMNIFY AND DEFEND THE CITY IN ACCORDANCE WITH THE INDEMNIFICATION PROVISIONS CONTAINED IN THE CIMA AGREEMENT, DEFINED IN PARAGRAPH 6, SAID AGREEMENT BEING ATTACHED HERETO AND INCORPORATED HEREIN AS EXHIBIT "C." 12. The DISTRICT shall procure and maintain at its sole cost and expense for the term(s) of the Agreement insurance against claims for injuries to person or damages to property which may arise from or in connection with the performance of the work hereunder by the CITY, its agents, representatives, volunteers, employees or subcontractors. 12.1 The DISTRICT's insurance coverage shall be primary insurance with respect to the CITY, its officials, employees and agents. Any insurance or self - insurance maintained by the CITY, its officials, employees or agents shall be considered in excess of the DISTRICT's insurance and shall not contribute to it. 12.2 The following is a list of standard insurance policies along with their respective minimum coverage amounts required in this Agreement: a. Commercial General Liability • General Aggregate: $1,000,000 • Per Occurrence: $500,000 • Coverage shall be at least as broad as ISO CG 00 01 10 93 • No coverage shall be deleted from standard policy without notification of individual exclusions being attached for review and acceptance. b. Business Automobile Policy ■ Combined Single Limits: $500,000 or BI per person $100,000 BI per accident $300,000 PD per accident $100,000. ■ Coverage for "Any Auto" 12.3 The following is applicable to all policies of insurance required in Paragraph 12.2: a. Insurance carrier for all liability policies must have an A.M. Best Rating of B +:VIII or better. • 0 b. Only insurance carriers licensed and admitted to do business in the State of Texas will be accepted. C. Liability policies must be on occurrence form. d. Each insurance policy shall be endorsed to state that coverage shall not be suspended, voided, canceled or reduced in coverage or in limits except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the CITY. e. The CITY, its officers, agents and employees are to be added as Additional Insureds to all liability policies. If the DISTRICT chooses to Self - Insure, the General Liability and Automobile Liability Insurance requirements of Paragraph 12.2, then the DISTRICT's extension of Additional Insured Status to the CITY shall be governed by the applicable Indemnity Agreement in the By -Laws of CIMA Section 2.6. f. Upon request and without cost to the CITY, certified copies of all insurance polices and/or certificates of insurance shall be furnished to the CITY. 13. All notices required to be given hereunder shall be given in writing by overnight, or facsimile transmission, or by certified or registered mail at the respective addresses of the parties set forth herein or at such other address as may be designated in writing by either party. Notice given by mail shall be deemed given three days after the date of mailing thereof to the following addresses: DISTRICT Chambers County Improvement District No. 1 Attn: James D. Bonham Smith, Murdaugh, Little & Bonham, L.L.P. 1100 Louisiana Street, Suite 400 Houston, TX 77002 -5211 Fax No. (713) 652 -6515 CITY City of Baytown Attn: City Manager P.O. Box 424 Baytown, TX 77522 Fax No. (281) 420 -6586 14. It is agreed and understood that the DISTRICT is responsible for the safety of its personnel and persons performing emergency services for fire, chemical and medical emergencies at the Territory. • 15. The DISTRICT shall not sell, assign, or transfer any of its rights or obligations under this Agreement in whole or in part without the prior written consent of CITY, which consent shall not be unreasonably withheld. 16. Notwithstanding anything to the contrary contained in this Agreement, the CITY and the DISTRICT hereby agree that no claim or dispute between the CITY and the DISTRICT arising out of or relating to this Agreement shall be decided by any arbitration proceeding including, without limitation, any proceeding under the Federal Arbitration Act (9 U.S.C. Sections 1 -14), or any applicable State arbitration statute, including, but not limited, to the Texas General Arbitration Act, provided that in the event that the CITY is subjected to an arbitration proceeding notwithstanding this provision, the DISTRICT consents to be joined in the arbitration proceeding if the DISTRICT's presence is required or requested by the CITY of complete relief to be recorded in the arbitration proceeding. 17. In the event of any ambiguity in any of the terms of this Agreement, it shall not be construed for or against any party hereto on the basis that such party did or did not author the same. 18. This Agreement shall in all respects be interpreted and construed in accordance with and governed by the laws of the State of Texas, regardless of the place of its execution or performance. The place of making and the place of performance for all purposes shall be Baytown, Harris County, Texas. 19. This Agreement shall bind and benefit the CITY and the DISTRICT and shall not bestow any rights upon any third parties. 20. Failure of either party hereto to insist on the strict performance of any of the agreements herein or to exercise any rights or remedies accruing thereunder upon default or failure of performance shall not be considered a waiver of the right to insist on and to enforce, by an appropriate remedy, strict compliance with any other obligation hereunder or to exercise any right or remedy occurring as a result of any future default or failure of performance. 21. This Agreement contains all the agreements of the parties relating to the subject matter hereof and is the full and final expression of the agreement between the parties. This Agreement shall not be amended or modified without the express written consent of both parties hereto. 22. The officers executing this Agreement on behalf of the parties hereby represent that such officers have full authority to execute this Agreement and to bind the party he /she represents. IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first set forth above in multiple copies, each of which shall be deemed to be an original, but all of which shall constitute but one and the same Agreement. v • ATTEST: Signature Printed Name Title ATTEST: GARY W. SMITH City Clerk APPROVED AS TO FORM: IGNACIO RAMIREZ, SR. City Attorney CHAMBERS COUNTY IMPROVEMENT DISTRICT NO. I Authorized Agent's Signature Authorized Agent's Printed Name Authorized Agent's Title CITY OF BAYTOWN GARY JACKSON City Manager 0 RAKarcn \FileslContracts\Fire Protection Agreement\Chambers County Improvement District No. I\ FireProtectionandkescue ServicesAgreement072805 Final. DOC r 'Pr 0 , ,4 • --- } 44 �� ' M `om''!I '1 y'A s• i.1:4ti. 147 1%4 •� -xq, 1,4 �•- , s• . It ft.?� w., S.*t41 � f4 V �: � ! 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",, at ., �•fY y, i, gi r • +i�'t j 'a s •.t • )t '• .+, c iy \ air -,.J• ., X• ., uf-j.: ��'� '� 1 r 7 • i} ' F k,• RPw•,, 11 k t •., 'T}yy _ . r , ,r G 9 .W Fire Station Five 7210 Bayway Dr. 281 - 420 -5335 1 Lieutenant 1 Equipment Operator 2 Firefighters E -5 - 2003 Pierce 1,500 GPM 750 Gallons Water and 25 Gallon Foam Tank 1000' 5" Hose 900' 2 ' /Z" Hose 850' 1 3/4' Hose 100' 1 '/2" Hose PPV Fan AED (4) Portable Hand Held Radios Gas Detector (5) airpacs Ladders (1) 24' Extension ladder (1) 12' Roof ladder (1) 10' Attic ladder (1) A -frame ladder Radios (4) 800's (1) 154 (1) CIMA Reserve 5 - 1986 Grumman 1,000 GPM 600 Gallons Water 1000' 5" Hose 1000' 3" hose 200'2 '/2' Hose 450' 1 3/4" Hose PPV Fan (4) airpacs Ladders (1) 24' Extension ladder (1) 14' Roof ladder ® (1) 12' Roof ladder (1) 10' Attic ladder 1 is C Radios (1) 800's (1) 154 (1) CIMA C] ® CIMA NON -MEMBER • EMERGENCY INCIDENT ASSISTANCE AND REIMBURSEMENT AND INDEMNIFICATION AGREEMENT THIS EMERGENCY INCIDENT ASSISTANCE AND REIMBURSEMENT AND INDEMNIFICATION AGREEMENT ( "Agreement ") is made as of the _ day of ,20 by and between Channel Industries Mutual Aid Organization ("LIMA" or "CIMA Corporation "), a Texas non- profit corporation, and , a CIMA non - member (hereinafter "COMPANY "). RECITALS WHEREAS, COMPANY is currently involved in response activities associated with in ; and WHEREAS, CIMA has equipment and/or personnel that are available to help COMPANY respond to the emergency situation; the term "CIMA" or "CIMA Corporation" as used in this Agreement means Channel Industries Mutual Aid Organization, its successors, assigns, agents, employees, officers, directors and all CIMA Members, including their agents, employees, officers and directors; and WHEREAS, COMPANY desires to contract with CIMA for the actual provision of assistance with response to emergency fire protection and other public safety matters on the terms and conditions set forth herein; and WHEREAS, COMPANY agrees that the local fire department or other appropriate governmental entity is responsible for directing fire fighting or emergency activities at the COMPANY receiving assistance. AGREEMENTS NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, CIMA and COMPANY hereby agree as follows: ARTICLE I CONDITIONS AND LIMITATIONS OF SERVICE 1.1 The Services provided under this Agreement shall consist of first alarm assignment only with a minimum of a four -hour callout. 1.2 COMPANY shall pay CIMA for the Services provided in accordance with the following rate schedule: Hours 0 through 8: $15,000 per hour plus consumables Hours 9 through 16: $25,000 per hour plus consumables Hours 16 through 24: $35,000 per hour plus consumables 1.3 CIMA normally will not provide Services for more than 24 hours. In the event that COMPANY requests for the Services to continue for more than 24 hours, CIMA may continue or discontinue the Services at its sole option and within its sole discretion. Should CIMA agree to continue the Services for more than 24 hours, such Services shall be provided at a rate of $50,000 per hour plus consumables. IT 0 ARTICLE H REIMBURSEMENT - MATERIAL & EQUIPMENT 2.1 REIMBURSEMENT. COMPANY receiving assistance from CIMA Corporation or CIMA Members, shall replace material used, and repair or replace any equipment damaged or lost, in the control of a fire or emergency situation within the receiving COMPANY'S facilities, in kind or in cash at current prices. REIMBURSEMENT OF DAMAGED OR LOST EQUIPMENT IS REQUIRED WITHOUT REGARD TO THE CAUSE OR CAUSES THEREOF NCLUDING DAMAGE OR LOSS CAUSED BY PREEXISTING CONDITIONS OR THE NEGLIGENCE OF ANY PARTY OR PARTIES INCLUDING THE OWNER OR OPERATOR OF THE EQUIPMENT, WHETHER SUCH NEGLIGENCE BE SOLE, JOINT OR CONCURRENT ACTIVE OR PASSIVE. THIS REIMBURSEMENT OBLIGATION IS INAPPLICABLE TO THE EXTENT THAT MATERIAL OR EQUIPMENT IS DAMAGED OR LOST BY REASON OF GROSS NEGLIGENCE OR WILLFUL MISCONDUCT. 2.2 Reimbursement Definition. Damage to and loss of equipment refers to damage and loss as a result of the emergency situation rather than from the wear and tear expected in the normal operation of the equipment. The owner of damaged or lost equipment is entitled to repair of the equipment, or replacement of the equipment if repair is not feasible for economic or other reasons. The cost of replacement in that circumstance will be the current cost, in the Greater Houston Metropolitan Area, of new equipment with specifications similar to that of the equipment to be replaced. The current cost of new, similar equipment is to be determined as of the date of the damage or loss that necessitates the replacement of the equipment. 2.3 SURVIVABILITY. ALL PROVISIONS CONCERNING REIMBURSEMENT OBLIGATIONS UNDER THIS AGREEMENT SHALL SURVIVE THE TERMINATION DATE. ARTICLE III INDEMNIFICATION 3.1 INDEMNIFICATION. COMPANY RECEIVING ASSISTANCE FROM CIMA CORPORATION OR CIMA MEMBERS SHALL INDEMNIFY DEFEND AND HOLD HARMLESS (A) CIMA; AND (B) EACH AND EVERY CIMA MEMBER AND THE AGENTS DIRECTORS OFFICERS AND EMPLOYEES THEREOF PROVIDING ASSISTANCE (BOTH (A) AND (B) HEREINAFTER "INDEMNIFIED. PARTIES "), FROM AND AGAINST ANY AND ALL DEMANDS CAUSES OF ACTION DAMAGES INJURIES, FINES (INCLUDING PENALTIES OR OTHER CHARGES OR COSTS IMPOSED BY ANY FEDERAL, STATE OR LOCAL AUTHORITY), LIABILITY, ATTORNEY FEES LITIGATION COSTS AND EXPENSES AND LOSSES OF ANY KIND OR CHARACTER FOR SICKNESS OR INJURY TO OR DEATH OF ANY PERSON (INCLUDING ANY EMPLOYEE) AND FOR LOSS OR DAMAGE TO ANY PROPERTY OWNED OR OPERATED BY LIMA CORPORATION A CIMA MEMBER OR ANY OTHER PERSON OR ENTITY (INCLUDING ANY EQUIPMENT AND ANY NATURAL RESOURCES) RESULTING DIRECTLY OR INDIRECTLY FROM THE RECEIVING COMPANY'S USE OF EQUIPMENT OR EMPLOYEES OR FROM THE RESPONSE ACTIONS UNDERTAKEN BY CIMA CORPORATION OR CIMA MEMBERS. THIS INDEMNIFICATION IS APPLICABLE TO ALL EVENTS OCCURRING: (1) ON THE ACTUAL PROPERTY OF COMPANY RECEIVING ASSISTANCE OR-(2) ON PROPERTY UNDER THE CONTROL OF THE COMPANY RECEIVING ASSISTANCE (SUCH AS LEASED WAREHOUSE SPACE) DEMANDS CAUSES OF ACTION, DAMAGES, INJURIES FINES LIABILITY LOSSES OF ANY KIND OR CHARACTER FOR SICKNESS OR DEATH OF ANY PERSON (INCLUDING ANY EMPLOYEE), AND FOR LOSS OR DAMAGE TO ANY PROPERTY OCCURRING OFF OF THE ACTUAL PROPERTY OF COMPANY RECEIVING ASSISTANCE OR OFF THE PROPERTY UNDER THE CONTROL OF THE COMPANY RECEIVING ASSISTANCE WILL BE GOVERNED BY COMMON LAW. 3.2 GROSS NEGLIGENCE WILLFUL MISCONDUCT CRIMINAL LAW. COMPANY AGREES THAT THE INDEMNITIES PROVIDED FOR IN THIS AGREEMENT SHALL BE EFFECTIVE REGARDLESS OF THE NEGLIGENT ACTS OR OMISSIONS OF THE INDEMNIFIED PARTIES WHETHER SUCH N'EGLIGEN'CE BE SOLE JOINT OR CONCURRENT ACTIVE OR PASSIVE AND REGARDLESS OF WHETHER LIABILITY WITHOUT FAULT IS IMPOSED ON THE INDEMNIFIED PARTIES EXCEPT'TO THE EXTENT THAT LIABILITY ARISES BY REASON OF THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF THE INDEMNIFIED PARTIES. IN ADDITION THE COMPANY SHALL NOT BE LIABLE TO ANY INDEMNIFIED PARTY FOR ANY CLAIMS OR PENALTIES ARISING OUT OF OR RESULTING FROM THE INTENTIONAL VIOLATION OF ANY CRIMINAL LAW. 3.3 Insurance. COMPANY also covenants and agrees that the indemnity and hold harmless provisions are not limited, restricted, or in any way affected by the amount of insurance carried by COMPANY. 3.4 SURVIVABILITY. ALL INDEMNITIES MADE BY COMPANY UNDER THIS AGREEMENT SHALL SURVIVE THE TERMINATION DATE. 3.5 DEFINITIONS. "DEFEND" MEANS TO: (I) PROVIDE LEGAL COUNSEL AND DEFENSE TO THE CIMA CORPORATION OR AT THE CIMA CORPORATION'S OPTION TO REIMBURSE CIMA CORPORATION FOR ALL REASONABLE ATTORNEYS FEES GENERATED BY COUNSEL SELECTED BY CIMA CORPORATION; AND (2) TO PAY ALL OTHER COSTS OF DEFENSE INCLUDING ALL APPEAL AND SUPERSEDEAS BONDS. ARTICLE IV MISCELLANEOUS 4.1 Designated Emergencies - Participation Voluntary. There is no obligation on any CIMA Member to contribute equipment or manpower to any particular emergency. Participation in any particular emergency is wholly voluntary based on the needs and availability of a CIMA Member to respond. Thus, there is no liability on CIMA Corporation or any CIMA Member for failing to respond to an emergency situation under this Agreement. 4.2 _Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Texas. 4.3 _Attorneys Fees. In the event that any legal action is instituted between the parties pertaining to the interpretation or enforcement of the terms of this Agreement, the prevailing party shall be entitled to recover a reasonable allowance for attorneys fees and court expenses, to be fixed and determined by the court in which such action is filed. 4.4 Notices. All notices, demands or communications relating to this Agreement that CIMA Corporation or any CIMA Member may wish to send to COMPANY shall be in writing. 4.5 Severability. If any provision of this Agreement or portion thereof should be declared invalid for any reason, the invalid provisions or portion thereof shall be deemed omitted and the remaining terms shall nevertheless be carried into effect. 4.6 Waiver. The waiver of a breach of any term or condition of this Agreement shall not be deemed to constitute the waiver of any other breach of the same or any other term or condition. ® 4.7 Numi)er and Gender. Whenever required by the context, the singular number shall include the plural, and the masculine or neutral gender shall include all genders. 4.8 Entire A eement. This Agreement contains the entire understanding between the parties and supersedes any prior written or oral agreements between them respecting the subject matter contained herein. No subsequent modification of this Agreement shall be effective unless it is in writing and signed by all parties. 4.9 A_ssisrnment- Bindin Effect. COMPANY may not assign its rights and obligations under this Agreement. Subject to and without affecting the prohibitions herein with respect to assignment, this Agreement shall be binding on the parties and their respective successors and assigns. 4.10 Non- members: Nothing in this Agreement shall entitle any person or entity not a party to this Agreement to institute any claims, causes of action, remedy, or right of any kind arising out of the operations conducted pursuant to this Agreement. 4.11 Term. Unless earlier terminated by COMPANY or CIMA Corporation, this Agreement shall remain in force for so long as COMPANY is engaged in response activities relating to the Incident. NOTWITHSTANDING SECTION 3.11 OF THIS ARTICLE THE REIMBURSEMENT PROVISIONS A INDEMNITIES CONTAINED IN THIS AGREEMENT SHALL REMAIN IN EFFECT BEYOND THE TERMINATION OF RESPONSE ACTIVITIES UNDER THIS AGREEMENT. IN WITNESS WHEREOF, COMPANY and CIMA Corporation executed this Agreement by their duly authorized representatives on the date indicated below. Dated: 11 Channel Industries Mutual Aid Organization ( "CIMA ") By [signature] Name [printed] Title [Note: Any individual CIMA Member, or CIMA Specialist, or CIMA officer may sign above on behalf of CIMA]. Dated: l� [COMPANY] By [signature] Name [printed] Company Title WITNESSED BY: [Municipality, Governmental Agency or Entity] By [signature] Name [printed] Title Agency Dated AGREEMENT FOR EMERGENCY PROTECTION SERVICES STATE OF TEXAS § § COUNTY OF HARRIS § THIS AGREEMENT is made, entered into and effective as of the 1st day of August, 2005, by and between the CITY OF BAYTOWN, Texas, a municipal corporation located in Harris County and Chambers County, Texas (the "CITY"), and Chambers County Improvement District No. 1, (the "DISTRICT"), having a territory and facilities in Chambers County, Texas; and WHEREAS, the CITY will provide fire fighting support and backup protection to the DISTRICT's territory and facilities therein, but shall not be obligated to purchase any additional equipment or build any additional facilities in order to provide such support and backup protection, it being the intent of the parties that the level of protection be that which was being provided by the CITY as of the date of said Agreement, August 1, 2005; and WHEREAS the DISTRICT's territory includes real and personal property used in the logistics, warehousing, distribution,. manufacturing, refining and chemical manufacturing, research, support, and office facilities used in direct support of these operations situated either contiguous thereto or separated by roads, which territory is more specifically identified in Exhibit "A," which is attached hereto and incorporated herein for all intents and purposes (hereinafter referred to as the "Territory"); and WHEREAS, the DISTRICT desires the CITY to provide fire fighting and rescue services to the Territory in support of which the DISTRICT shall make certain payments to the CITY to enable the CITY's Fire Department to improve fire fighting and rescue response capabilities; and NOW THEREFORE, in consideration of the promises and of the mutual covenants and agreements herein contained, the CITY and the DISTRICT agree as follows: 1. The CITY will respond, at the request of the DISTRICT or landowners and tenants in the DISTRICT, with emergency services for fire, chemical and medical emergencies at the Territory which escalate above the incipient or internal response capability of the personnel of the landowners and tenants within the Territory, which services will be provided with reasonable promptness to the extent the equipment, facilities, personnel, training and other resources available to the CITY will, from time to time,permit. 2. The CITY represents that Exhibit`B," attached hereto is, to the best of its knowledge and belief, a complete listing of the CITY's fire and chemical protection equipment, facilities, materials, training, personnel and other emergency response resources, which, as of the effective date of this Agreement, may be utilized for response in the event of an emergency within the Territory as described herein. Upon the written request of the DISTRICT as described hereinbelow, the CITY shall amend Exhibit `B" annually to reflect all such resources which have been acquired and/or retired during the CITY's prior fiscal year, irrespective of the source of such additional resources, including 1 purchases and acquisitions with funds from the Dedicated Fund defined in Paragraph 4. The CITY shall prepare this amended Exhibit "B" within sixty (60) days after the end of the CITY's fiscal year, in each Contract Year during the term or terms hereof and shall provide to the DISTRICT a copy of each such amended Exhibit `B" within thirty (30) days after the DISTRICT makes a written request therefor. 3. The CITY's Rules and Regulations for Baytown Fire and Rescue Services and Operations Manual ("Standard Operating Procedures") governing the response to the various emergencies, in conjunction with the availability of resources, shall dictate the CITY's initial response to emergency situations reported by the DISTRICT to the CITY. The Chief of the CITY's Fire Department or the senior Fire Officer on the scene, i.e., the Incident Commander, shall, with the assistance and cooperation of plant/facility officials within the Territory and analysis of the stand-by resources required, determine the level of additional CITY, Channel Industries Mutual Aid ("CIMA") and/or other outside response required. 4. The DISTRICT shall make annual payments to the CITY during the term or terms of this Agreement, as provided in this Paragraph. All funds represented by such payments shall be set aside and maintained by the CITY in a segregated, dedicated fund (hereinafter referred to as the "Dedicated Fund") dedicated solely for the improvement of fire fighting and/or hazardous materials response capabilities as determined by the Chief of the Fire Department after consultation with the DISTRICT ("Equipment and Training") for the use solely by the CITY in performing its fire, chemical and medical emergency response services, including those services which will be performed under the terms of this Agreement. For the services required to be rendered herein, the DISTRICT shall pay no less than ONE HUNDRED FIFTY THOUSAND AND NO/100 DOLLARS ($150,000.00), excluding reimbursable expenses required herein, in each year of the term of this Agreement, adjusted as provided hereinafter, for so long as this Agreement shall remain in effect, subject to (i) the reopener as provided for herein and (ii) the funds being used in a manner consistent with this Agreement. The amount of each such payment after the first Contract Year, as defined in Paragraph 7 hereof of this Agreement shall be increased in an amount equal to the percentage increase in the Consumers Price Index of the region in which Texas is located (the "CPI") during the last three calendar months in the Contract Year immediately preceding the current Contract Year (the current Contract Year is the Year during which such payment is to be made over the CPI for the Base Year). The CPI shall mean and refer to the final regional consumers price index reported. Either the CITY or the DISTRICT may reopen this Agreement for Contract Years 3, 5, 7, 9, if applicable, for the sole purpose of negotiation of service costs due to additional development in the Territory or other changes that affect service delivery. Any party reopening this Agreement shall notify the other part in writing. Such notice shall include a detailed list of the modifications or changes desired and supporting documentation and must be received by the other party at least 120 days prior to July 31 of the applicable Contract Year. Upon receipt of the notice, the negotiations shall commence. It is expressly understood and agreed that nothing herein shall be construed to allow any other provision of this Agreement to be reopened. This section only allows the parties to reopen the compensation provision of this Agreement for the years stated hereinabove. If the Agreement is reopened pursuant to this section, it is expressly understood and agreed that until a new agreement concerning the opened section is reached the opened section as specified in the Agreement will be in full force and effect and will be binding upon the parties hereto. If the parties do not reach agreement on the revised service cost by July 31, either party may terminate this Agreement upon giving the other one hundred eighty (180) days written notice of its desire to terminate this agreement. The payment for each Contract Year will be made in four (4) equal installments on the first(1st) day of August,November, February and May of such Contract Year. Failure of the DISTRICT to make payments in a timely manner will be considered a material breach of this Agreement and will result in interest in the amount of 1% per month being accessed on all delinquent amounts. Additionally for such a material breach, the CITY, in its sole discretion, shall have the right, but not the obligation, (i) to suspend services until the DISTRICT makes payment in full or (ii) to terminate this Agreement. In the event of suspension or termination, the CITY shall provide the DISTRICT written notice of the same. 5. The DISTRICT agrees that in receiving assistance from the CITY or other CIMA members, the DISTRICT shall replace material used, and shall repair or replace equipment lost or damaged in the control of a fire or emergency situation within the Territory, in cash based on current replacement cost or in kind, in the same manner as specified in Section 2.6 of the CIMA Bylaws adopted August 18, 2004, unless otherwise specified herein, which bylaws are by this reference incorporated herein by this reference for all intents and purposes. Reimbursement of damaged or lost equipment is required without regard to the cause or causes thereof (including damage or loss caused by preexisting conditions) or the negligence of any party or parties, including, but not limited to the owner, the operator, the CITY and any CIMA member, as well as their respective officers, agents or employees, whether such negligence be sole, joint or concurrent active or passive. Material used includes, but is not limited, to, fire fighting foam, hazardous materials containment or absorbent materials and chemical protective clothing and equipment. Reimbursement of monies expended is required without regard to the cause or causes thereof or the negligence of any party or parties, whether such negligence be sole,joint, or concurrent, active or passive. The obligations in this Paragraph 5 shall be in addition to and shall remain in effect notwithstanding termination of the payments described in Paragraph 4 or the termination of this Agreement. The reimbursements required pursuant to this Paragraph 5 shall be due within thirty (30) days after the CITY renders the services resulting in the DISTRICT's obligation to replace material used, and/or to repair or replace equipment lost or damaged in the control of a fire or emergency situation within the Territory. Failure of the DISTRICT to make payments in a timely manner will be considered a material breach of this Agreement and will result in interest in the amount of 1% per month being accessed on all delinquent amounts. Additionally, for such a material breach, the CITY, in its sole discretion, shall have the right, but not the obligation, (i) to suspend services until the DISTRICT makes payment in full or (ii) to terminate this Agreement. In the event of suspension or termination, the CITY shall provide the DISTRICT written notice of the same. 6. The DISTRICT understands and agrees that should the CITY seek assistance from CIMA for fire-fighting, rescue, Hazmat and/or medical manpower and facilities or any other assistance in an emergency situation within the Territory, the DISTRICT shall sign a CIMA Non-member Emergency Incident Assistance and Reimbursement and Indemnification Agreement (the "CIMA Agreement") and shall abide by the terms thereof Should the DISTRICT fail for any reason to sign the CIMA Agreement, the DISTRICT shall still be responsible for all expenses the CITY incurs in complying with Section 2.6 of the CIMA Bylaws, passed on August 18, 2004. The DISTRICT understands and agrees that all CIMA reimbursement costs incurred by the CITY, for whatever, reason shall be borne by the DISTRICT. Should any of the provisions of this Agreement conflict with the terms of the CIMA Agreement, irrespective of whether the DISTRICT signs such agreement, those provisions providing the most protection to the CITY, as determined by the CITY, shall control. ALL PROVISIONS CONCERNING REIMBURSEMENT OBLIGATIONS UNDER THIS AGREEMENT SHALL SURVIVE THE TERMINATION OR EXPIRATION HEREOF. 7. The term of this Agreement shall commence on the effective date of this Agreement and shall continue for an initial term of six (6) years from such date ("Initial Term"), unless terminated pursuant to Paragraph 4 or 5 hereinabove. Following the Initial Term, this Agreement may be renewed for an additional four-year term upon agreement of the parties. Each year during the Initial Term and any successive term of this Agreement, commencing on August 1 of each year and ending July 31 of the following year, shall be deemed a"Contract Year"hereunder. 8. The parties understand and agree that the suspension or termination of this Agreement for any reason has no effect on any Industrial District Agreement between the CITY and the any entity lying within the Territory. All such agreements shall remain in full force and effect pursuant to its term and conditions thereof 9. The parties understand and agree that this Agreement shall remain in full force and effect pursuant to its terms and conditions, throughout the term or terms hereof provided, however, that if: (a) the CITY and/or the DISTRICT are unsuccessful in preventing an annexation or incorporation by another municipality or (b) the CITY annexes a portion of the Territory, the CITY or the DISTRICT may, in its sole discretion, terminate this Agreement only for that portion of the Territory affected by the annexation or incorporation at any time after the effective date of such annexation or incorporation. The DISTRICT may terminate this Agreement on one hundred eighty (180) days notice if it determines, in good faith, that the CITY is not providing an adequate level of fire, chemical and medical emergency services to the DISTRICT. 10. In the event the terms and conditions of this Agreement are rendered ineffective or that their effect is changed by the constitution, any Legislative changes, or any interpretation of Texas law, both parties agree that this Agreement shall be renegotiated to accomplish the intent and purposes of this Agreement. 11. THE DISTRICT AGREES TO INDEMNIFY AND DEFEND THE CITY IN ACCORDANCE WITH THE INDEMNIFICATION PROVISIONS CONTAINED IN THE CIMA AGREEMENT, DEFINED IN PARAGRAPH 6, SAID AGREEMENT BEING ATTACHED HERETO AND INCORPORATED HEREIN AS EXHIBIT"C." 12. The DISTRICT shall procure and maintain at its sole cost and expense for the term(s) of the Agreement insurance against claims for injuries to person or damages to property which may arise from or in connection with the performance of the work hereunder by • the CITY, its agents, representatives, volunteers, employees or subcontractors. 12.1 The DISTRICT's insurance coverage shall be primary insurance with respect to the CITY, its officials, employees and agents. Any insurance or self-insurance maintained by the CITY, its officials, employees or agents shall be considered in excess of the DISTRICT's insurance and shall not contribute to it. 12.2 The following is a list of standard insurance policies along with their respective minimum coverage amounts required in this Agreement: a. Commercial General Liability • General Aggregate: $1,000,000 • Per Occurrence: $500,000 • Coverage shall be at least as broad as ISO CG 00 01 10 93 • No coverage shall be deleted from standard policy without notification of individual exclusions being attached for review and acceptance. b. Business Automobile Policy • Combined Single Limits: $500,000 or BI per person$100,000 BI per accident $300,000 PD per accident $100,000. • Coverage for"Any Auto" 12.3 The following is applicable to all policies of insurance required in Paragraph 12.2: a. Insurance carrier for all liability policies must have an A.M. Best Rating of B+:VIII or better. b. Only insurance carriers licensed and admitted to do business in the State of Texas will be accepted. c. Liability policies must be on occurrence form. d. Each insurance policy shall be endorsed to state that coverage shall not be suspended, voided, canceled or reduced in coverage or in limits except after thirty (30) days' prior written notice by certified mail, return receipt requested,has been given to the CITY. e. The CITY, its officers, agents and employees are to be added as Additional Insureds to all liability policies. If the DISTRICT chooses to Self-Insure, the General Liability and Automobile Liability Insurance requirements of Paragraph 12.2, then the DISTRICT's extension of Additional Insured Status to the CITY shall be governed by the applicable Indemnity Agreement in the By-Laws of CIMA Section 2.6. f. Upon request and without cost to the CITY, certified copies of all insurance polices and/or certificates of insurance shall be furnished to the CITY. 13. All notices required to be given hereunder shall be given in writing by overnight, or facsimile transmission, or by certified or registered mail at the respective addresses of the parties set forth herein or at such other address as may be designated in writing by either party. Notice given by mail shall be deemed given three days after the date of mailing thereof to the following addresses: DISTRICT Chambers County Improvement District No. 1 Attn: James D. Bonham Smith, Murdaugh, Little &Bonham, L.L.P. 1100 Louisiana Street, Suite 400 Houston, TX 77002-5211 Fax No. (713) 652-6515 CITY City of Baytown Attn: City Manager P.O. Box 424 Baytown, TX 77522 Fax No. (281) 420-6586 14. It is agreed and understood that the DISTRICT is responsible for the safety of its personnel and persons performing emergency services for fire, chemical and medical emergencies at the Territory. 15. The DISTRICT shall not sell, assign, or transfer any of its rights or obligations under this Agreement in whole or in part without the prior written consent of CITY, which consent shall not be unreasonably withheld. 16. Notwithstanding anything to the contrary contained in this Agreement, the CITY and the DISTRICT hereby agree that no claim or dispute between the CITY and the DISTRICT arising out of or relating to this Agreement shall be decided by any arbitration proceeding including, without limitation, any proceeding under the Federal Arbitration Act (9 U.S.C. Sections 1-14), or any applicable State arbitration statute, including, but not limited, to the Texas General Arbitration Act, provided that in the event that the CITY is subjected to an arbitration proceeding notwithstanding this provision, the DISTRICT consents to be joined in the arbitration proceeding if the DISTRICT's presence is required or requested by the CITY of complete relief to be recorded in the arbitration proceeding. 17. In the event of any ambiguity in any of the terms of this Agreement, it shall not be construed for or against any party hereto on the basis that such party did or did not author the same. 18. This Agreement shall in all respects be interpreted and construed in accordance with and governed by the laws of the State of Texas, regardless of the place of its execution or performance. The place of making and the place of performance for all purposes shall be Baytown, Harris County, Texas. 19. This Agreement shall bind and benefit the CITY and the DISTRICT and shall not bestow any rights upon any third parties. 20. Failure of either party hereto to insist on the strict performance of any of the agreements herein or to exercise any rights or remedies accruing thereunder upon default or failure of performance shall not be considered a waiver of the right to insist on and to enforce, by an appropriate remedy, strict compliance with any other obligation hereunder or to exercise any right or remedy occurring as a result of any future default or failure of performance. 21. This Agreement contains all the agreements of the parties relating to the subject matter hereof and is the full and final expression of the agreement between the parties. This Agreement shall not be amended or modified without the express written consent of both parties hereto. 22. The officers executing this Agreement on behalf of the parties hereby represent that such officers have full authority to execute this Agreement and to bind the party he/she represents. IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first set forth above in multiple copies, each of which shall be deemed to be an original, but all of which shall constitute but one and the same Agreement. CHAMBERS COUNTY IMPROVE TRICT NO. 1 Auth i d Agent's Signature Authorized Agent's Printed Name ,1c Authorized Agent's Title A ST: jr— o4) SIe-Zn Printed Name Title CITY OF BAYTOWN • GAR JAC S N City Mana er/ ATTEST: • - G Y W. SMITH City Clerk APPROVED AS TO FORM: NACIO RAMIREZ, S City Attorney R:\Karen\Files\Contracts\Fire Protection Agreement\Chambers County Improvement District No.l\FireProtectionandRescueServicesAgreement072805Fina1.DOC •••••• 11 f 111'4ir 0,,. -\---- - '.. -- — ———----———i t ti r a,l y�A ti'' l M S — — fits f ie,Z6..Y °f 4/4, .r go , c\II win _ ` , .. �IR v��` 1 , llirci.--%•AzioN 111. „roto .. 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",, at ., �•fY y, i, gi r • +i�'t j 'a s •.t • )t '• .+, c iy \ air -,.J• ., X• ., uf-j.: ��'� '� 1 r 7 • i} ' F k,• RPw•,, 11 k t •., 'T}yy _ . r , ,r G 9 .W Fire Station Five 7210 Bayway Dr. 281-420-5335 1 Lieutenant 1 Equipment Operator 2 Firefighters E-5 -2003 Pierce 1,500 GPM 750 Gallons Water and 25 Gallon Foam Tank 1000' 5" Hose 900' 2 '/2" Hose 850' 1 3/4" Hose 100' 1 '/Z' Hose PPV Fan AED (4) Portable Hand Held Radios Gas Detector (5) airpacs Ladders (1) 24' Extension ladder (1) 12' Roof ladder (1) 10' Attic ladder (1) A-frame ladder Radios (4) 800's (1) 154 (1) CIMA Reserve 5 - 1986 Grumman 1,000 GPM 600 Gallons Water 1000' 5" Hose 1000' 3" hose 200' 2 '/2" Hose 450' 1 %" Hose PPV Fan (4) airpacs Ladders (1) 24' Extension ladder (1) 14' Roof ladder (1) 12' Roof ladder (1) 10' Attic ladder EXHIBIT B Radios (1) 800's (1) 154 (1) CIMA CIMA NON-MEMBER EMERGENCY INCIDENT ASSISTANCE AND REIMBURSEMENT AND INDEMNIFICATION AGREEMENT THIS EMERGENCY INCIDENT ASSISTANCE AND REIMBURSEMENT AND INDEMNIFICATION AGREEMENT ("Agreement") is made as of the_day of ,20 , by and between Channel Industries Mutual Aid Organization ("CIMA" or "CIMA Corporation"), a Texas non- profit corporation,and ,a CIMA non-member(hereinafter"COMPANY"). RECITALS WHEREAS, COMPANY is currently involved in response activities associated with in ; and WHEREAS, CIMA has equipment and/or personnel that are available to help COMPANY respond to the emergency situation;the term"CIMA"or"LIMA Corporation"as used in this Agreement means Channel Industries Mutual Aid Organization, its successors, assigns, agents, employees, officers, directors and all CIMA Members, including their agents,employees,officers and directors;and WHEREAS, COMPANY desires to contract with CIMA for the actual provision of assistance with response to emergency fire protection and other public safety matters on the terms and conditions set forth herein; and WHEREAS, COMPANY agrees that the local fire department or other appropriate governmental entity is responsible for directing fire fighting or emergency activities at the COMPANY receiving assistance. AGREEMENTS NOW,THEREFORE,in consideration of the foregoing,and for other good and valuable consideration,the receipt and sufficiency of which is hereby acknowledged,CIMA and COMPANY hereby agree as follows: ARTICLE I CONDITIONS AND LIMITATIONS OF SERVICE 1.1 The Services provided under this Agreement shall consist of first alarm assignment only with a minimum of a four-hour callout. 1.2 COMPANY shall pay CIMA for the Services provided in accordance with the following rate schedule: Hours 0 through 8: $15,000 per hour plus consumables Hours 9 through 16: $25,000 per hour plus consumables Hours 16 through 24: $35,000 per hour plus consumables 1.3 CIMA normally will not provide Services for more than 24 hours.In the event that COMPANY requests for the Services to continue for more than 24 hours, CIMA may continue or discontinue the Services at its sole option and within its sole discretion. Should CIMA agree to continue the Services for more than 24 hours, such Services shall be provided at a rate of$50,000 per hour plus consumables. V ARTICLE II REIMBURSEMENT-MATERIAL & EQUIPMENT 2.1 REIMBURSEMENT. COMPANY receiving assistance from CIMA Corporation or CIMA Members, shall replace material used, and repair or replace any equipment damaged or lost, in the control of a fire or emergency situation within the receiving COMPANY'S facilities, in kind or in cash at current prices. REIMBURSEMENT OF DAMAGED OR LOST EQUIPMENT IS REQUIRED WITHOUT REGARD TO THE CAUSE OR CAUSES THEREOF (INCLUDING DAMAGE OR LOSS CAUSED BY PREEXISTING CONDITIONS) OR THE NEGLIGENCE OF ANY PARTY OR PARTIES INCLUDING THE OWNER OR OPERATOR OF THE EQUIPMENT, WHETHER SUCH NEGLIGENCE BE SOLE, JOINT OR CONCURRENT, ACTIVE OR PASSIVE. THIS REIMBURSEMENT OBLIGATION IS INAPPLICABLE TO THE EXTENT THAT MATERIAL OR EQUIPMENT IS DAMAGED OR LOST BY REASON OF GROSS NEGLIGENCE OR WILLFUL MISCONDUCT. 2.2 Reimbursement Definition. Damage to and loss of equipment refers to damage and loss as a result of the emergency situation rather than from the wear and tear expected in the normal operation of the equipment. The owner of damaged or lost equipment is entitled to repair of the equipment, or replacement of the equipment if repair is not feasible for economic or other reasons. The cost of replacement in that circumstance will be the current cost, in the Greater Houston Metropolitan Area, of new equipment with specifications similar to that of the equipment to be replaced. The current cost of new, similar equipment is to be determined as of the date of the damage or loss that necessitates the replacement of the equipment. 2.3 SURVIVABILITY. ALL PROVISIONS CONCERNING REIMBURSEMENT OBLIGATIONS UNDER THIS AGREEMENT SHALL SURVIVE THE TERMINATION DATE. ARTICLE III INDEMNIFICATION 3.1 INDEMNIFICATION. COMPANY RECEIVING ASSISTANCE FROM CIMA CORPORATION OR CIMA MEMBERS, SHALL INDEMNIFY, DEFEND AND HOLD HARMLESS (A) CIMA; AND (B) EACH AND EVERY CIMA MEMBER AND THE AGENTS, DIRECTORS, OFFICERS AND EMPLOYEES THEREOF PROVIDING ASSISTANCE (BOTH (A) AND (B) HEREINAFTER"INDEMNIFIED. PARTIES"), FROM AND AGAINST ANY AND ALL DEMANDS, CAUSES OF ACTION, DAMAGES, INJURIES, FINES (INCLUDING PENALTIES OR OTHER CHARGES OR COSTS IMPOSED BY ANY FEDERAL, STATE OR LOCAL AUTHORITY), LIABILITY, ATTORNEY FEES, LITIGATION COSTS AND EXPENSES, AND LOSSES OF ANY KIND OR CHARACTER FOR SICKNESS OR INJURY TO OR DEATH OF ANY PERSON (INCLUDING ANY EMPLOYEE), AND FOR LOSS OR DAMAGE TO ANY PROPERTY OWNED OR OPERATED BY CIMA CORPORATION, A CIMA MEMBER, OR ANY OTHER PERSON OR ENTITY (INCLUDING ANY EQUIPMENT AND ANY NATURAL RESOURCES) RESULTING DIRECTLY OR INDIRECTLY FROM THE RECEIVING COMPANY'S USE OF EQUIPMENT OR EMPLOYEES OR FROM THE RESPONSE ACTIONS UNDERTAKEN BY CIMA CORPORATION OR CIMA MEMBERS. THIS INDEMNIFICATION IS APPLICABLE TO ALL EVENTS OCCURRING: (1) ON THE ACTUAL PROPERTY OF COMPANY RECEIVING ASSISTANCE OR(2) ON PROPERTY UNDER THE CONTROL OF THE COMPANY RECEIVING ASSISTANCE (SUCH AS LEASED WAREHOUSE SPACE). DEMANDS, CAUSES OF ACTION, DAMAGES, INJURIES, FINES, LIABILITY, LOSSES OF ANY KIND OR CHARACTER FOR SICKNESS OR DEATH OF ANY PERSON(INCLUDING ANY EMPLOYEE),AND FOR LOSS OR DAMAGE TO ANY PROPERTY OCCURRING OFF OF THE ACTUAL PROPERTY OF COMPANY RECEIVING ASSISTANCE OR OFF THE PROPERTY UNDER THE CONTROL OF THE COMPANY RECEIVING ASSISTANCE, WILL BE GOVERNED BY COMMON LAW. 3.2 GROSS NEGLIGENCE,WILLFUL MISCONDUCT, CRIMINAL LAW. COMPANY AGREES THAT THE INDEMNITIES PROVIDED FOR IN THIS AGREEMENT SHALL BE EFFECTIVE REGARDLESS OF THE NEGLIGENT ACTS OR OMISSIONS OF THE INDEMNIFIED PARTIES WHETHER SUCH NEGLIGENCE BE SOLE,JOINT OR CONCURRENT,ACTIVE OR PASSIVE,AND REGARDLESS OF WHETHER LIABILITY WITHOUT FAULT IS IMPOSED ON THE INDEMNIFIED PARTIES,EXCEPT'TO THE EXTENT THAT LIABILITY ARISES BY REASON OF THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF THE INDEMNIFIED PARTIES.IN ADDITION,THE COMPANY SHALL NOT BE LIABLE TO ANY INDEMNIFIED PARTY FOR ANY CLAIMS OR PENALTIES ARISING OUT OF OR RESULTING FROM THE INTENTIONAL VIOLATION OF ANY CRIMINAL LAW. 3.3 Insurance. COMPANY also covenants and agrees that the indemnity and hold harmless provisions are not limited,restricted,or in any way affected by the amount of insurance carried by COMPANY. 3.4 SURVIVABILITY. ALL INDEMNITIES MADE BY COMPANY UNDER THIS AGREEMENT SHALL SURVIVE THE TERMINATION DATE. 3.5 DEFINITIONS. "DEFEND"MEANS TO: (1)PROVIDE LEGAL COUNSEL AND DEFENSE TO THE CIMA CORPORATION OR AT THE CIMA CORPORATION'S OPTION,TO REIMBURSE CIMA CORPORATION FOR ALL REASONABLE ATTORNEYS FEES GENERATED BY COUNSEL SELECTED BY CIMA CORPORATION;AND(2)TO PAY ALL OTHER COSTS OF DEFENSE INCLUDING ALL APPEAL AND SUPERSEDEAS BONDS. ARTICLE IV MISCELLANEOUS 4.1 Designated Emergencies - Participation Voluntary. There is no obligation on any CIMA Member to contribute equipment or manpower to any particular emergency.Participation in any particular emergency is wholly voluntary based on the needs and availability of a CIMA Member to respond.Thus,there is no liability on CIMA Corporation or any CIMA Member for failing to respond to an emergency situation under this Agreement. 4.2 Governing Law. This Agreement shall be governed by,and construed in accordance with,the laws of the State of Texas. 4.3 Attorneys Fees. In the event that any legal action is instituted between the parties pertaining to the interpretation or enforcement of the terms of this Agreement,the prevailing party shall be entitled to recover a reasonable allowance for attorneys fees and court expenses,to be fixed and determined by the court in which such action is filed. 4.4 Notices. All notices,demands or communications relating to this Agreement that CIMA Corporation or any CIMA Member may wish to send to COMPANY shall be in writing. 4.5 Severability. If any provision of this Agreement or portion thereof should be declared invalid for any reason, the invalid provisions or portion thereof shall be deemed omitted and the remaining terms shall nevertheless be carried into effect. 4.6 Waiver. The waiver of a breach of any term or condition of this Agreement shall not be deemed to constitute the waiver of any other breach of the same or any other term or condition. 4.7 Number and Gender. Whenever required by the context,the singular number shall include the plural,and the masculine or neutral gender shall include all genders. 4.8 Entire Agreement. This Agreement contains the entire understanding between the parties and supersedes any prior written or oral agreements between them respecting the subject matter contained herein.No subsequent modification of this Agreement shall be effective unless it is in writing and signed by all parties. 4.9 Assignment; Binding Effect. COMPANY may not assign its rights and obligations under this Agreement. Subject to and without affecting the prohibitions herein with respect to assignment,this Agreement shall be binding on the parties and their respective successors and assigns. 4.10 Non-members: Nothing in this Agreement shall entitle any person or entity not a party to this Agreement to institute any claims,causes of action,remedy,or right of any kind arising out of the operations conducted pursuant to this Agreement. 4.11 Term. Unless earlier terminated by COMPANY or CIMA Corporation,this Agreement shall remain in force for so long as COMPANY is engaged in response activities relating to the Incident. NOTWITHSTANDING SECTION 3.11 OF THIS ARTICLE, THE REIMBURSEMENT PROVISIONS AND INDEMNITIES CONTAINED IN THIS AGREEMENT SHALL REMAIN IN EFFECT BEYOND THE TERMINATION OF RESPONSE ACTIVITIES UNDER THIS AGREEMENT. IN WITNESS WHEREOF, COMPANY and CIMA Corporation executed this Agreement by their duly authorized representatives on the date indicated below. Dated: Channel Industries Mutual Aid Organization("CIMA") By[signature] Name[printed] Title [Note:Any individual CIMA Member,or CIMA Specialist,or CIMA officer may sign above on behalf of CIMA]. Dated: [COMPANY] By[signature] Name[printed] Company Title WITNESSED BY: [Municipality,Governmental Agency or Entity] By[signature] Name [printed] Title Agency Dated EXHIBIT "A" The district includes all of the territory contained within the following described area: BEING approximately 13,900 acres of land situated in Chambers County, Texas, and being out of and a part of the Christian Smith League, Abstract No. 22, the Thomas Shepherd Survey, Abstract No. 229, the Chambers County School Land Survey, Abstract No. 321, the Solomon Barrow Survey, Abstract No. 3, the John Steele Survey, Abstract No. 227, the J. L. Hill Survey, Abstract No. 106, the J. K. Allen Survey, Abstract No. 31, the J. C. Fisher Survey, Abstract No. 31, the W. D. Smith League, Abstract No. 23 and the John Ijams Survey, Abstract No. 15. This tract of land is more particularly described by metes and bounds as follows, to-wit: BEGINNING at the Northeast corner of Tract No. 199-B, in the East line of the Chambers County School Land Survey, Abstract No. 321 and in the West line of the Solomon Barrow Survey, Abstract No. 3 and in the South right of way line of the Houston Lighting and Power Company Discharge Canal right of way. THENCE in a Southerly direction with the East line of this tract, the East line of the Chambers County School Land Survey and the West line of the Solomon Barrow Survey to the Northwest corner of Tract No. 100-A. THENCE in an Easterly and Southerly direction with the North and East lines of Tract No. 100-A to a point at the intersection of the North line of Tract No. 100-A with the East right of way line of F. M. Highway No. 2354. THENCE in a Southerly direction with the East right of way line of F. M. Highway No. 2354 to the intersection of the South right of way line of Fisher Road (Rice Farm Road) with the East right of way line of F. M. Highway No. 2354. THENCE in a Westerly direction with the South right of way line of Fisher Road to the most Northern Northeast corner of Tract No. 89. THENCE in a Southerly and Easterly direction with the East and North lines of Tract No. 89 to the Northwest corner of a 4.00 acre tract of land conveyed to Chambers County. THENCE in a Southerly and Easterly direction with the West and South lines of the Chambers County 4.00 acre tract to the intersection of the projection of the South line of the Chambers County 4.00 acre tract with the East right of way line of F. M. Highway No. 2354. THENCE in a Southerly direction with the East right of way line of F. M. Highway No. 2354 to a point at the intersection of the East right of way line of F. M. Highway No. 2354 with the South line, as extended, of a 0.9796 acre tract of land conveyed to United States Steel Corporation by G. E. Troxell, Jr., by deed recorded in Volume 283 at Page 454 of the Deed Records of Chambers County, Texas. THENCE in a Westerly direction with the South line of Tract No. 89M said Troxell tract to the Southwest corner of said Troxell tract in the East line of Tract No. 89M. 857946_3.DOC A-1 THENCE in a Southerly direction with the East line of Tract No. 89M to the Southeast corner of Tract No. 89M in the North line of Tract No. 125. THENCE in an Easterly direction with the North line of Tract No. 125 to the East right of way line of F. M. Highway No. 2354. THENCE in a Southerly direction with the East right of way line of Highway No. 2354 to the South line of Tract No. 125. THENCE in a Westerly direction with the South line of Tract No. 125 to the Southwest corner of Tract No. 125 in the East line of Tract No. 119. THENCE in a Southerly direction with the East line of Tracts No. 119, 118, 117, 117A, 116 to the Southeast corner of Tract No. 116 in the North line of Tract No. 114. THENCE in an Easterly direction with the North line of Tract No. 114 to the East right of way line of F. M. Highway No. 2354. THENCE in a Southerly direction with the East right of way line of F. M. Highway No. 2354 to South line of Tract No. 4-D as extended. THENCE in a Westerly direction with the South line of Tract No. 4-D to the most Northern Northeast corner of Tract No. 10-B. THENCE in a Southerly direction with the East and Northerly lines of Tract No, 10-B to a point at the intersection of the North line of Tract No. 10-B, as extended, with the East right of way line of F. M. Highway No. 2354. THENCE in a Southwesterly direction with the East and South right of way line of F. M. Highway No. 2354 to the intersection with the East right of way line of Live Oak Drive. THENCE in a Southwesterly direction with the East and South right of way line of Live Oak Drive to the intersection of the extended East line of the Nerco Oil and Gas Production Company 2.00 acre tract with the South right of way line of Live Oak Drive. THENCE in a Northerly direction with the East line of the Nerco Oil and Gas 2.00 acre tract to the Northeast corner of said 2.00 acre tract. THENCE in a Westerly direction with the North lines of the Nerco 2.00 acre tract, the Exxon 2.00 acre tract and the Exxon 5.00 acre tract of land to the Northwest corner of the Exxon 5.00 acre tract of land. THENCE in a Southerly direction with the West line of the Exxon 5.00 acre tract to the Southwest corner of the Exxon 5.00 acre tract and a corner of the Jones and Laughlin Tract No. 3. 857946_3.DOC A-2 THENCE in a Westerly direction with the South and West lines of the Jones and Laughlin Tract No. 3 and the shore line of Galveston Bay and San Jacinto Bay and the West line of Tract No. 43 to the Southeast or East shore line of Cedar Bayou. THENCE in a Northwesterly direction with the shore line of Cedar Bayou and the West line of Tracts No. 43, Atlantic Pipeline 14.3427 acre and 43A to the Southwest corner of the Maurice Hirsch so-called 40.28 acre tract and Northwest corner of Tract No. 43A. THENCE in an Easterly direction with the South line of the Hirsch tract and the North line of Tract No. 43A to a point in the East right of way line of Tri-City Beach Road at the extension of the North line of Tract No. 43A. THENCE in a Southerly direction with the East line of Tri-City Beach Road to the West right of way line of F. M. Highway No. 1405. THENCE in a Northerly direction with the West right of way line of F. M. Highway No. 1405 to the Northeast corner of Tract No. 37. THENCE in a Westerly direction with the North line of Tract No. 37 to the centerline of Cedar Bayou, being the County Line between Chambers and Harris Counties. THENCE in a Northerly direction with the centerline of Cedar Bayou and said County Line to a point at the intersection of the centerline of Cedar Bayou with the South line of the Warrior and Gulf 15.00 acne tract. THENCE in an Easterly, Northerly, Westerly and Southerly direction with the lines of the Warrior Gulf 15 acre tract and the Hoesch Tubular Products Company 25 acre tract lines to a point at the intersection of the West line of Hoesch 25 acre tract, extended, with the centerline of Cedar Bayou and said County Line. THENCE in a Northerly direction with the centerline of Cedar Bayou to the intersection of the centerline of Cedar Bayou with the extension of the South line of Johnnie and Rosemary Jennings property. THENCE in an Easterly, Northerly and Westerly direction around the Jennings property to the intersection of the North line of the Jennings property extended with the centerline of Cedar Bayou and said County Line. THENCE in a Northerly direction with the centerline of Cedar Bayou to the intersection of the centerline of Cedar Bayou with the South line, extended, of a Tract conveyed to McDonugh Company. THENCE in an Easterly direction with the South line of the McDonugh Company tract to a point for the Southeast corner of the McDonugh Company tract in the West right of way line of West Bay Road(Old F. M. Highway No. 1405). THENCE in a Northerly direction with the West right of way line of West Bay Road to a point at the intersection of the North line, extended, of Tract No. 35-X. 857946_3.DOC A-3 THENCE in an Easterly direction with the North line of Tract No. 35-X to the Northeast corner of Tract No. 35-X and in the West right of way line of Houston Lighting and Power Company 330 foot right of way and in the West line of Tract No. 5-D. THENCE in a Northerly direction with the West line of Tract No. 5-D and the West line of said 330 foot right of way to a point in the North right of way line of West Bay Road. THENCE in an Easterly direction with the North right of way line of West Bay Road to a point for a corner of Tract No. 5-D being in the East right of way line of the old right of way for West Bay Road. THENCE in an Easterly direction with the North line of Tract No. 5-D to the intersection with the South right of way line of the Houston Lighting and Power Company Discharge Canal. THENCE in an Easterly direction with the South right of way line of the Houston Lighting and Power Company Discharge Canal to the Northwest corner of a 21.2152 acre tract of land conveyed to Houston Lighting and Power Company. THENCE in a Southerly direction with the West line of said 21.2152 acre tract to the Southwest corner of said 21.2152 acre tract of land. THENCE in an Easterly direction with the South line of said 21.2152 acre tract to the Southeast corner of said 21.2152 acre tract of land in the West line of the Coastal Water Authority 5.115 acre tract of land. THENCE in a Southerly, Easterly and Northerly direction around said Coastal Water Authority 5.115 acre tract to a point for the Northeast corner of said 5.115 acre tract in the South right of way line of the Houston Lighting and Power Company Discharge Canal right of way. THENCE in an Easterly direction with the South line of the Houston Lighting and Power Company Discharge Canal right of way to the PLACE OF BEGINNING, containing within said boundaries approximately 13,900 acres of land. 857946_3.DOC A-4 ` tuo t ons o aoinos a j Jo anj�oodsazzj `no,� IEosij -loud �ujpnjouj sao.�nosa� t j •�.pp u ,I u s u a j Suun pa zjla.i .io/puia pwinboE uooq axed Llolgm sooinosai cans 11E loajla i P ol EnuuE « S�� jjajuxH pu3m LjEus �ZI� au, `MotaQuja.atj paauasap sE ZaI2I.LSIQ tt atp jo Is anba ua uM au� 11 aiau Pi uod •ut aquosop sE faoI4101 atp TIM 1M �oua2.IOUI . uE JO Juana oill ui osuodsa i .ioj pozjljin as XEuu `ju3uzaa.z2V sjtp jo OJEp anjIoaJla a o SE ` of M `soo znosa.z osuodsw �ouo&Io o Jatpo puE lauuos.�ad `�ujujE.�� `sjtj.Ia�Eu� `salt tot ` uouadinba uot�oolaid toituogo puB OJU s� 1ID atjI,Io gujlsjl ajaldwoo `�ajjacj uE a� a a j of `si ojoiatl patlovuv «`g„ I!glgxg w7gI sjuasoidai AIID us Z P P tMo�t s�.�o Isa Q u • tuuad`auzi o Own mo iM A,LID atp of atQEtjtnE soo.inosa.i.�atpo puE gujujE11 ` ai j TOE ` uotudinbo a , lualxo a j of ssoulduaoid o1quosiew tpjM papjno.�d lauuos.�ad s .�.j. � � � u as LIjM saojna as of M fao ujo a j ui jj m sjuual puE siouMoputl atp 10 iauuosiad auko Xjx tQEdto asuodsai jEuaju! -Io .juajdjouj atp anoaE a1Etoso ttottlM XJOI uaZ UOa E saiouasiatua Eo1pau puE jtotuato 60J J saojnJas Xou92.IauIa TYA 41DMISIG au�ut sJutuaI Pula SJQUAAOPUL71 Jo LD dLSIQ auj jo Isonba.i atp 1E `puodso-i jjjM &.ZID at11 61 ffe .sMolloj sE OOBE a ,LID atp`poulEluoo uja.zatl sjuawai ,LaI2�ZSIQ u P A Put sjutuanoo j EnInUU atp 10 PUB sosiumid atp jo uoTw.xapjsuoo uj `E[XOJaXRHJL MOM uE `.sai t i EdEo osuodsa.z anosai put guligjj a.IU ano.zduij of luatulEdaQ a.�i3 s�,kZID atp olge o P .1.t.a a o s uomkod umpoo a to Etls IDI2IZSIQ au, uojun'jo poddns uj faoipuu auj 01 o� �J,I� u� � � � it onosa.�P soomaos uE SuiIgjj a.Ijj apjno zd of k,LID atp so zjsap ,LDI-d LSIQ auk SVEMMUM . P (« ojjuaZ„atp st 01 pa uaja.1.1Q j 0a�atl) ocbnd uE s ua ui E .Io uta.Ia OIRIod.�oouj puE o1a.Iatj patloEUt sj uolgm «`�„ �jQjux� sas p � � tt � u P toads a.Iouz st faoluza� f o M `spoo.i Aa palt.�tdas io olajagj snongjluoo uj pa�j�uapj �ttEo�. u .0 < is suot imado asa o poddns pa.zjp ui posn sajjjjjotj ao1ijo put 1joddns uawasw �atj�ja pa�En�• .� u�� . M `s oy s�o t otuza o PuE SumIjaSuun� Elnm � umnquisipSjsnotaE `Su� of1nuvuz tEu . . a� ui osn Xpadoid jEai sopnjouj kioiuuol s,,LDIuSIQ at SV9XRHM ` ` sn�n ` uau�aaz� iEs,Io alEp atp 10 st ,LID atp Aa papjnoid Pu •500Z t I '�P• a o.�d o ana a �t j sat�.tEd auj jo w3luj otp Sujaa 11 uot oaloid Suiaa stM Lloigm jEtp aQ uoilo t t uj u a tnoid o .io .io ui sold pq IL'uoljjppE Xue pjjna .�o luatudjnbo dnxotcl put poddns dons p, � p . .t. t t Sut osE oind o� ojv2itQ o as jou 1jEtjs Inq `uia.zatp saj ttuo �.PPE Tjj!M7J put fU0IuJOI s,1,3I?I1,SIQ . tI P . oqj of uoiloalo.id dnNoEQ ptm jjoddns 9ui1q-2 o ijj apjnoid t11m ,k1,ID atp SVgxgHM PUB `.stxa uno s.za um ui son! !oE3 puE [a0IuJ3I E gul."q `(«Z�RILSIQ�� •ol�I 1oj. sjQ .L � � Q u� . .t. o.zd uno s.�aLmH ux� uE ` �.LI�„ atp) stxaZ `XlunoD s.zaaumtlD puE XjunoD SL juauIan tuI D a u� p (« of t.�od.zoo Edtotuntu t `stxa `N�01.&Vq 30 , ,LID auj uo M�aq, pim Xa SOOZ uj POIEooj u •� t Z sn2n o ke 1 atp Jo SE an1j3ajJ3 put oTuj pa.IaIua optuz sj 1,l�t�y�� O� SIHZ � � 1 P �S § SIGH d0 AZSMO D § SVX211 do 211VIS sE[alnXas MoI�aE1z oxd ADNao'HaWa xo3 iMaWaaUoV 4 , 1 purchases and acquisitions with funds from the Dedicated Fund defined in Paragraph 4. The CITY shall prepare this amended Exhibit"B" within sixty (60) days after the end of the CITY's fiscal year, in each Contract Year during the term or terms hereof and shall provide to the DISTRICT a copy of each such amended Exhibit "B" within thirty (30) days after the DISTRICT makes a written request therefor. 3. The CITY's Rules and Regulations for Baytown Fire and Rescue Services and Operations Manual ("Standard Operating Procedures") governing the response to the various emergencies, in conjunction with the availability of resources, shall dictate the CITY's initial response to emergency situations reported by the DISTRICT to the CITY. The Chief of the CITY's Fire Department or the senior Fire Officer on the scent, i.e., the Incident Commander, shall, with the assistance and cooperation of plant/facility officials within the Territory and analysis of the stand-by resources required, determine the level of additional CITY, Channel Industries Mutual Aid ("CIMA") and/or other outside response required. 4. The DISTRICT shall make annual payments to the CITY during the term or teens of this Agreement, as provided in this Paragraph. All funds represented by such payments shall be set aside and maintained by the CITY in a segregated, dedicated fund (hereinafter referred to as the "Dedicated Fund") dedicated solely for the improvement of fire fighting and/or hazardous materials response capabilities as determined by the Chief of the Fire Department after consultation with the DISTRICT ("Equipment and Training") for the use solely by the CITY in performing its fire, chemical and medical emergency response services, including those services which will be performed under the terms of this Agreement. For the services required to be rendered herein, the DISTRICT shall pay no less than ONE HUNDRED FIFTY THOUSAND AND NO/100 DOLLARS ($150,000.00). excluding reimbursable expenses required herein, in each year of the term of this Agreement, adjusted as provided hereinafter, for so long as this Agreement shall remain in effect, subject to (i)the reopener as provided for herein and (ii) the funds being used in a manner consistent with this Agreement. The amount of each such payment after the first Contract Year, as defined in Paragraph 7 hereof of this Agreement shall be increased in an amount equal to the percentage increase in the Consumers Price Index of the region in which Texas is located (the "CPI") during the last three calendar months in the Contract Year immediately preceding the current Contract Year (the current Contract Year is the Year during which such payment is to be made over the CPI for the Base Year). The CPI shall mean and refer to the final regional consumers price index reported. Either the CITY or the DISTRICT may reopen this Agreement for Contract Years 3, 5, 7, 9, if applicable, for the sole purpose of negotiation of service costs due to additional development in the Territory or other changes that affect service delivery. Any party reopening this Agreement shall notify the other part in writing. Such notice shall include a detailed list of the modifications or changes desired and supporting documentation and must be received by the other party at least 120 days prior to July 31 of the applicable Contract Year. Upon receipt of the notice, the negotiations shall commence. It is expressly understood and agreed that nothing herein shall be construed to allow any other 1 I , provision of this Agreement to be reopened. This section only allows the parties to reopen the compensation provision of this Agreement for the years stated hereinabove. If the Agreement is reopened pursuant to this section, it is-expressly understood and agreed that until a new agreement concerning the opened section is reached the opened section as specified in the Agreement will be in full force and effect and will be binding upon the parties hereto. If the parties do not reach agreement on the revised service cost by July 31, either party may terminate this Agreement upon giving the other one hundred eighty (180) days written notice of its desire to terminate this agreement. The payment for each Contract Year will be made in four (4) equal installments on the first(1 st) day of August,November, February and May of such Contract Year. Failure of the DISTRICT to make payments in a timely manner will be considered a material breach of this Agreement and will result in interest in the amount of 1% per month being accessed on all delinquent amounts. Additionally for such a material breach, the CITY, in its sole discretion, shall have the right, but not the obligation, (i) to suspend services until the DISTRICT makes payment in full or (ii) to terminate this Agreement. In the event of suspension or termination, the CITY shall provide the DISTRICT written notice of the same. 5. The DISTRICT agrees that in receiving assistance from the CITY or other CIMA members, the DISTRICT shall replace material used, and shall repair or replace equipment lost or damaged in the control of a fire or emergency situation within the Territory, in cash based on current replacement cost or in kind, in the same manner as specified in Section 2.6 of the CIIVIA Bylaws adopted August 18, 2004, unless otherwise specified herein, which bylaws are by this reference incorporated herein by this reference for all intents and purposes. Reimbursement of damaged or lost equipment is required without regard to the cause or causes thereof (including damage or loss caused by preexisting conditions) or the negligence of any party or parties, including, but not limited to the owner, the operator, the CITY and any CIMA member, as well as their respective officers, agents or employees, whether such negligence be sole, joint or concurrent active or passive. Material used includes, but is not limited, to, fire fighting foam, hazardous materials containment or absorbent materials and chemical protective clothing and equipment. Reimbursement of monies expended is required without regard to the cause or causes thereof or the negligence of any party or parties, whether such negligence be sole,joint, or concurrent, active or passive. The obligations in this Paragraph 5 shall be in addition to and shall remain in effect notwithstanding termination of the payments described in Paragraph 4 or the termination of this Agreement. The reimbursements required pursuant to this Paragraph 5 shall be due within thirty (30) days after the CITY renders the services resulting in the DISTRICT's obligation to replace material used, and/or to repair or replace equipment lost or damaged in the control of a fire or emergency situation within the Territory. Failure of the DISTRICT to make payments in a timely manner will be considered a material breach of this Agreement and will result in interest in the amount of 1% per month being accessed on all delinquent amounts. Additionally, for such a material breach, the CITY, in its sole discretion, shall have the right, but not the obligation, (i) to suspend services until the DISTRICT makes payment in full or (ii) to terminate this `u�i t� poog u, Souluzja aP 11 I ootlou si(t (08 j) Klg2Io pOzpunu Ouo uo luacuaa V si�I JIa aukuo1 . od1oaui jo uolxou cans joaJp aAIJ3O a tutual Atu , '3J-UZ t t.zodzoaut .Io uotltxauut oql XQ palooge fam ugi atj1,Io uoi�zod�ttj� .�a�t au�i�but �� uo•� u .zo uo �uatuaa. st l a1tulUU31 `uoi1013SIP Ojos sIi ui `�ttu Z�I2I,L5IQ auk-o .,LID atjl t .0 `faol ua oql jo uoi od t soxouut AID OT (q) . .L .zo,KIijtdioiunuu.ioglout Xa uoiltiodiooui .zo uoiTtxauut ut Sut�uana.id u t� t ss000nsun axe IDMISIQ oql Jo/put AID QqT (B) • . :Ji 191jl `.IOAannou ` uua .zo uuo a ino Sno i `suoilipuoo put suuol sli of lutns.ind papino.�d .,Ioa.�au s � � u� u � ut uttuia.� s �uau,�aa.z� stuff�tiI�aa. t put purls iapun soil wd gqL .6 �oa�Ja put ao�o,I jI tt u . • oajau,suoilipuoo put uual sli of lutnsmd loggo itu�a.z s s uauzaa. t ons •f,tolivaZ atlJ uitjlinn Suutj XIiIua but pue ao.�o� tt� ui u. tt u � u tt uaa a uaui00. JoPIsiQ jtit�snpul due uo 1a0J,Ia ou stv� uost0.�due auk P 1�1,I0 auk � a st o no . putIs.iapun sat td azIZ 08 .Ioj luauaaa V .u� ttutuuol io uotsuadsns oql lugl aaj2t pule I ,� •iOpunonq«xea�,�ot��uo�„t Pautaap a s `noX Sulmo o a o nr �uipuo put ngA gota jo I IsnSnV uo SuiouOURU03 Qtt �t tt .I u .I t£ t • at d IIUOUIOgBV si o uz�a1 OAtss000ns Kut pue UUol MIR aul Sui.�np nOX �jot9 s , uodn uuo xeoX-.ono tuo t uu . a.i Oa Xtut iuoIUQoBV oql jo luaaa. t ,I IlI t . PP Ioj pomou `uua tt a I �utnno o •anoatuio ioq s .io tr gdt.2t.zta of lutns.znd paltuiuual situ .L t .gym u� tj 3 ssa un ` uua tt� altp Bons uio.ag sng K (9) xis jo uual jtiliui ue .ioj onui�uoo jttus . t (« l t . . ) ut uatuaaB s o o t OAtIoO a a�jl uo aOuaututoa Ijt�js Tuauzaa.2V sitl��o uua� guZ L •30aX9H NOI,L�uclXa ZIO MOI.LVMME[s 21HZ 21AIN&aS IgVHS jLMa 2JaUDV SIH.L 2IaQNC1 SNOIsV'JI'ISO IME[ E[S2iC1UMaX 'JNIIi M21DNOD SMOISIAOUJ 'IqV •10.11u03 jjtus ,,LID aul Ka pouiumiop st ' .,LID atll ol uoiloaloid ls oLu auJ Sut lAo id suotstAo.id asogl `juauuaO.12t tjons suds ZDI2LLSIQ ,p, . . auk �atj�atlnn�o ani� �u3wQ;) aodsa.ui ` aul Jo sUu3I QqT Tim T3'Uuoo luautaa.z2V . � ��� s o suotstno.�d a �o but pjnotIs -IDMLSIQ oql Aa auzoa as jjtcjs uosta.� .zQA;3JU m nth.I . . u Jo a oimout slsoo luautas.inaw!w �D ttt TOM saa.St put sput�s.�apun � �,LI� � Q P ZDRIZSICI aLILL t�00 Z 8 t IsanV uo passtd smvlKq VWID aul 10 97 uotloa S tin Sum dwoo ui sinoui &I,,ID oql sosuodxo jjt .ioj olcjisuodsa.z Oa jjils jltus .LDMISIQ a ` uautaa. acj� u�is o� uosta.� Xut Ioj Iit.I ,LaRIZSIQ a�� PlnouS '3oa.�acjl u� � Ia suual u�a Q P.Qt tt O t iu s put (',lugLuooj2V VMD„ aul) luautaOBV uoiltoi,�iuutapuI put luoLuosmn u� 2i P ta ut aou>IsissV juapioul xouoSi3 ug .iogtuQLu-uoN VVED Q . u��s tu s .LDMjLSl Q auk `�oli.uaZ oql uiu�im uoi�tn�is �auag.zauua ut ui aout�sisst t tt but .xo sa t tot ue iomoduum Itoipoul io/put I'euutH `anosa.� `�ut��j,�-a�� �o� t .�au�o .�.t. 3 P VY1ua IUo �gas �..LI� a aout si oql pjnogs ltu, sooBt7 put sputls.iapun,LDMiLSIQ UL 9 •� � .sst •oums oql jo aoilou uaI4unn IDMISIQ auk gPinoid jjtqs A a u� uot` tutuual .io uotsuadsns jo luan0 QqT uI •Iuauuaa.SV .LI� .� • I , that the CITY is not providing an adequate level of fire, chemical and medical emergency : services to the DISTRICT. 10. In the event the terms and conditions of this Agreement are rendered ineffective or that their effect is changed by the constitution, any Legislative changes, or any interpretation of Texas law, both parties agree that this Agreement shall be renegotiated to accomplish the intent and purposes of this Agreement. 11. THE DISTRICT AGREES TO INDEMNIFY AND DEFEND THE CITY IN ACCORDANCE WITH THE INDEMNIFICATION PROVISIONS CONTAINED IN THE CIMA AGREEMENT, DEFINED IN PARAGRAPH 6, SAID AGREEMENT BEING ATTACHED HERETO AND INCORPORATED HEREIN AS EXHIBIT"C." 12. The DISTRICT shall procure and maintain at its sole cost and expense for the term(s) of the Agreement insurance against claims for injuries to person or damages to property which may arise from or in connection with the performance of the work hereunder by the CITY, its agents,representatives, volunteers, employees or subcontractors. 12.1 The DISTRICT's insurance coverage shall be primary insurance with respect to the CITY, its officials, employees and agents. Any insurance or self-insurance maintained by the CITY, its officials, employees or agents shall be considered in excess of the DISTRICT's insurance and shall not contribute to it. 12.2 The following is a list of standard insurance policies along with their respective minimum coverage amounts required in this Agreement: a. Commercial General Liability ■ General Aggregate: $1,000,000 ■ Per Occurrence: $500,000 ■ Coverage shall be at least as broad as ISO CG 00 01 10 93 ■ No coverage shall be deleted from standard policy without notification of individual exclusions being attached for review and acceptance. b. Business Automobile Policy ■ Combined Single Limits: $500,000 or BI per person $100,000 BI per accident $300,000 PD per accident $100,000. ■ Coverage for"Any Auto" 12.3 The following is applicable to all policies of insurance required in Paragraph 12.2: a. Insurance carrier for all liability policies must have an A.M. Best Rating of B+:VIII or better. b. Only insurance carriers licensed and admitted to do business in the State of Texas will be accepted. C. Liability policies must be on occurrence form. d. Each insurance policy shall be endorsed to state that coverage shall not be suspended, voided, canceled or reduced in coverage or in limits except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the CITY. e. The CITY, its officers, agents and employees are to be 4dded as Additional Insureds to all liability policies. If the DISTRICT chooses to Self-Insure, the General Liability and Automobile Liability Insurance requirements of Paragraph 12.2, then the DISTRICT's extension of Additional Insured Status to the CITY shall be governed by the applicable Indemnity Agreement in the By-Laws of CIMA Section 2.6. f. Upon request and without cost to the CITY, certified 'copies of all p insurance polices and/or certificates of insurance shall be furnished to the CITY. 13. All notices required to be given hereunder shall be given in writing by overnight, or facsimile transmission, or by certified or registered mail at the respective addresses of the parties set forth herein or at such other address as may be designated in writing by either party. Notice given by mail shall be deemed given three days after the date of mailing thereof to the following addresses: DISTRICT Chambers County Improvement District No. 1 Attn: James D. Bonham Smith, Murdaugh, Little &Bonham, L.L.P. 1100 Louisiana Street, Suite 400 Houston, TX 77002-5211 Fax No. (713) 652-6515 CITY City of Baytown Attn: City Manager P.O. Box 424 Baytown, TX 77522 Fax No. (281) 420-65 86 14. It is agreed and understood that the DISTRICT is responsible for the safety of its personnel and persons performing emergency services for fire, chemical and medical emergencies at the Territory. I , 15. The DISTRICT shall not sell, assign, or transfer any of its rights or obligations under this Agreement in whole or in part without the prior written consent of CITY, which consent shall not be unreasonably withheld. 16. Notwithstanding anything to the contrary contained in this Agreement, the CITY and the DISTRICT hereby agree that no claim or dispute between the CITY and the DISTRICT arising out of or relating to this Agreement shall be decided by any arbitration proceeding including, without limitation, any proceeding under the Federal Arbitration Act (9 U.S.C. Sections 1-14), or any applicable State arbitration statute, including, but not limited, to the Texas General Arbitration Act, provided that in the event that the CITY is sub j ected to an arbitration proceeding notwithstanding this provision, the DISTRICT consents to be joined in the arbitration proceeding if the DISTRICT's presence is required or requested by the CITY of complete relief to be recorded in the arbitration proceeding. 17. In the event of any ambiguity in any of the terms of this Agreement, it shall not be construed for or against any party hereto on the basis that such party did or did not author the same. 18. This Agreement shall in all respects be interpreted and construed in accordance with and governed by the laws of the State of Texas, regardless of the place of its execution or performance. The place of making and the place of performance for all purposes shall be Baytown,Harris County, Texas. 19. This Agreement shall bind and benefit the CITY and the DISTRICT and shall not bestow any rights upon any third parties. 20. Failure of either party hereto to insist on the strict performance of any of the agreements herein or to exercise any rights or remedies accruing thereunder upon default or failure of performance shall not be considered a waiver of the right to insist on and to enforce, by an appropriate remedy, strict compliance with any other obligation hereunder or to exercise any right or remedy occurring as a result of any future default or failure of performance. 21. This Agreement contains all the agreements of the parties relating to the subject matter hereof and is the full and final expression of the agreement between the parties. This Agreement shall not be amended or modified without the express written consent of both parties hereto. 22. The officers executing this Agreement on behalf of the parties hereby represent that such officers have full authority to execute this Agreement and to bind the party he/she represents. IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first set forth above in multiple copies, each of which shall be deemed to be an original, but all of which shall constitute but one and the same Agreement. 3OQ'ieuTdsoSZLoivauuaajZdsaauuasanasa-dpueuogaalo.Ldalc j\i-ON la USICI luacuanocdcuI f4unoo siaquieq:)\)uacuaa.2V uopmold an�Nsioe.RuoZ)\sati j\ualv}n:g Aau.IOUV XI!D (�ds `Zmpm OIDV 3;e Mod Oi SV QEInOxaaV HILTS 'Ak� O :.LSa L.LV N s 3Vr a O NIM01AVg do AID QW1 OMM paIuud a .S 7I1 v ajli,L s,juaSV pazuoulnV aumM paluijf s,luaSV pazpoujnV azmuaiS s,IuaV p .fw,pnV I 'OM ZDMI HAOx(di PU AsNnOD SX21EIW 'HD IN DOQ'C 9VU98 •W68 •olit IoV.IZ J o Dull Ise� oql ul lou.Il Itaxo.IZ PIES Jo.eau.Ioo jsaMujnos • •o o�.z o Enos oql ttlxnn uoIIoa.Iip Kl.za1saM V ui 931�I�HZ Dui o� �o�.�� IlaxozZ pigs y1I6 8 l�I� ,L gut� .t u •s'BxaZ`Alunoo siaqumgD J°sP.zoaaX .�ooa. as `•� `llaxo.zZ •� •9 Aq umir-IodiOD as a I Jo t9t, aqua it £8Z atunIOA ul pap poop q r P Q q anuoo UB o PE-II D-IoE 96L6.0 v 3° `PDPualxo st Dull g1n0S laa�s sa���S Pa��Cl o� pad P t � � utod � • t�LM �t o Dull ,Kvm �o jt2p Inn Duj Jo u01130s.Iolut oqj I j . oqj gjIm tvS£Z °ICI u .H W d J . • o gut �L'M o u IsE9 atll gJIM u0Ij3o lip Kl.�atljnoS v ui 9DN9HI 01�bS£Z OI�I��MLI�iI'j y� ,� .I .� u . • o gut X-em o 9u Iseg oqj gjIm ioe-Il o-MV 00-V XjunoD t�S£Z OI�t��MLI�tI-� Yet 3.� ,t .� u . a foA a o uotloos.Iolut atlj 01 lotj, a.1ov 00-V AjunoD s.zaqumgD atlj jo gull gjnoS oqi jo uotlo , u� u� sa a ��M uot�oa.�tp �t.�a�s�g pup Xt.iatljnoS v ul 9DN9HI s.�aqui�tlD atlj jo sauil tljnos p M u Tim . -XjunoD sjDq u� 01 PDXanuoo PUVj Jo PE-II azoE 00•-V E Jo.Iatuoo 1s3Mg1j0N oql • o u� s� a jIM u01130.11p Xl.zajsvq put XIi;)glnoS v ul 93M9H L 0168 ON 1o��Z�o sau�l tl� �I P � � u u . •6 8 'ON PE-II J o.Iau-103 Is`Eatl11ON u ogljoM o Dui t Em o � 5u jnoS atlj qj!m uolloa.iip XljolsD� v ul 9DM9H,L Ism atlj 01 p�o� �atls�,�� •l � u u •VS£Z •o At?m�tH -W 'dJ°Dull XLM Jo IqP ICI ao �o �a si o gull �vm jo jqu gjnoS atlj jo uotloos.ialul atlj �s�� atl� tl�iM (pEOX itu�3 � P 2I u .3� • o Dui �L'M o � � isLa atll tll!M uoiioa.�ip �l�atl�nos � uT ��I�IgHs o� Z oM,Kvmq!H ITT 3 j .t . �S£ �S£Z *ON ArMITSIH -W 'J JO Dull AL'M jo jtl9u Ing atlj tljIM V_00 I °lit jori t oqj jo uoiloas.�alul oqj it iuiod v off. V-00 i ,L�o gut u�o�jIt oo ilp Xl.zatllnoS put Alm �s-eg ue ul N9M, .ON IOV.IZ o sau�l �s� p uo a u� u .M.uo 'V-00 i *ON IoV.zZ J o.Iau zoo 0 o a o Du atlj pug Aan.�ns purl toouoS XjunoD Asa Mu�ol�t Dip o��a,nin S Moue g uou� l S u� it Asa� • � ` oE.� st t Isvg oqj gjim uoiloo.Ilp AliagjnoS v ul 9DMgH,L sl aaqumgD oqj jo gull inn T .u�.�o ou.t Item JO jg2p ltuED gSjUgosiQ Aueduuoa ELM o u jno atli ul pug £ •oM 13E.4s qV XQA.M S �anno u� �ut� i� uo�snoH acl��o Dull � ��, u S d P . �. oo D XjunoD 0 o a o gut Asa atl� ut pug i Z£ OI�I lot��sq� �an.�ns pu��I l u S Moro g uoLu l S ul J .l a � - •o jou�Z jo .�atuoo jsvatl�o�I att� �� � Jig sj;)qua qD atlj jo ouzl ma T ul g 66t ICI • - ` s� s uno u� sa�au��q pagosap Xlxslnoid a.�ouz s�purl�o�o��� .�iM o� snnollo� p q P � a � `t£ • `ADn.�n sumC o ;)qi put £Z •oN jo13.ijsgV `onBvoq tlii S Q M u s� S t oi�I�o�x�s q� S .I �I r � � •o o�.�s � D � •o �o�.z�sq� �an.zns uatt�' �I r auk 90 i i�I� q ON jor•�sqV Aanms .Iatlst3 D r u� t£ ICI `�anm Mo.� . ova s `XDAjn a DajS ugor Dui `£ 'oN jov.ijsqV S g �anm5 ItjH 'I r Dui LZZ o1�I� � Q� S l � •o a�.z s • v i s `fan in u� oogoS AjunoD s.zagtuvtl3 atl� 6ZZ ICI � � QV uotuolo S atl� i Z£ °ICI �o � Q� S P � l � �d E u� o a ` •o jou.zjs ongtarl gjiLuS u-8tTsI_rgD aqj jo � P �ansns p�atldatls s�tuogj u� ZZ Q o.zdd� ` s.za u� ut a��n�is pint,Io sa.zov 006`£t �ta��tuix Ji�II�g ino guiaq put slaxgZ 'AjunoD q uD . P . T . �Mo T . a ul ��M auiUjuoo,Kjol uD,Dill jo ttr sopntoui iouls'p atl,L To.m poquosop Su• tI T .0 . P «V99 ,LIE[IHX9 1 • I , THENCE in a Southerly direction with the East line of Tract No. 89M to the Southeast corner of Tract No. 8 9M in the North line of Tract No. 125. THENCE in an Easterly direct ion with the North line of Tract No. 125 to the East right of way line of F. M. Highway No. 2354. THENCE in a Southerly direct ion with the East right of way line of Highway No. 2354 to the South line of Tract No. 125. ' THENCE in a Westerly direction with the South line of Tract No. 125 to the Southwest corner of Tract No. 125 in the East line of Tract No. 119. THENCE In a Southerly direct ion with the East line of Tracts No. 119, 118, 117, 117A9 116 to the Southeas t corner of Tract No. 116 in the North line of Tract No. 114. THENCE In ' an Easterly direction with the North line of Tract No. 114 to the East right of way � line of F. M. Highway No. 2354. THENCE in a Southerly dire ction with the East right of way line of F. M. Highway No. 2354 to South line of Tract No. 4-D as extended. THENCE in a Westerly dire ction with the South line of Tract No. 4-D to the most Northern Northeast corner of Tract No. 10-B. direction with the East and Northerly lines of Tract No, 10-B to a point THENCE 1n a Southerly at the Intersection of th e North line of Tract No. 10-B, as extended, with the East right of way line of F. M. Highway No. 2354. 1 direction with the East and South right of way line of F. M. THENCE In a Southwesterly Highway No. 2354 4 to the intersection with the East right of way line of Live Oak Drive. THENCE in a Southwesterly direction with the East and South right of way line of Live Oak Drive to the intersecti on of the extended East line of the Nerco Oil and Gas Production Company 2.00 acre tract with the South right of way line of Live Oak Drive. THENCE in a Northerly ortherl direction with the East line of the Nerco Oil and Gas 2.00 acre tract to the Northeast corner of said 2.00 acre tract. THENCE in a Westerly direction with the North lines of the Nerco 2.00 acre tract, the Exxon 2.00 acre tract and the Exxon 5.00 acre tract of land to the Northwest corner of the Exxon 5.00 acre tract of land. THENCE In a Southey rl direction with the West line of the Exxon 5.00 acre tract to the Southwest corner of the Exxon 5.00 acre tract and a corner of the Jones and Laughlin Tract No. 3. 857946 3.DOC A-2 £_V DOTE 9V6L98 'X-S£ *ON IoUJZ JO `popuaixo `gull tlpom atpjo uoiIoas.IQTU!alp ju ujod o �o �� Asa o auj ��nn�o Ij Isar alp tp�nn uot�oa.jip�l�atl�jO�t ut gal�IgHs • SOvt -ON Xumgg!H 'W 'd PI0) P'801I,Keg sa o auj ��nn o �u Asa alp ux jowl Xuudtuoo gSnuo(jo atp jo .jatuoo Is�atpnos atp�oi � �� .I .t u . nn ujod u ol joejjKu-edxuoDnuoQoW alp jo gull ujnoS alp pm 110t133zip Xligisug ue ut gDiqgH,L •Xuuduuoo qSnuo 0 gAanuoo II V ,to `pgpuajxo `gull tpnoS alp gjIm noXug .mpoD jo autlJoluoo Q L� o� P 'M oqj jo uoj oas.za uj a j 01 noxvg MPQD jo oulpoluao atp gjIm uotloomp Xl.iogpoN U ui EIDX9Hs •autj,�junoD pins pue nokeg .Ir t. a nn u . 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COMPANY receiving assistance from CIMA Corporation or CIMA Members, shall replace material used, and repair or replace any equipment damaged or lost, in the control of a fire or emergency situation within the receiving COMPANY'S facilities, in kind or in cash at current prices. REIMBURSEMENT OF DAMAGED OR LOST EQUIPMENT IS REQUIRED WITHOUT REGARD TO THE CAUSE OR CAUSES THEREOF (INCLUDING DAMAGE OR LOSS CAUSED BY PREEXISTING CONDITIONS) OR THE NEGLIGENCE OF ANY PARTY OR PARTIES INCLUDING THE OWNER OR OPERATOR OF THE EQUIPMENT, WHETHER SUCH NEGLIGENCE BE SOLE, JOINT OR CONCURRENT ACTIVE OR PASSIVE. THIS REIMBURSEMENT OBLIGATION IS INAPPLICABLE TO THE EXTENT THAT MATERIAL OR EQUIPMENT IS DAMAGED OR LOST BY REASON OF GROSS NEGLIGENCE OR WILLFUL MISCONDUCT. 2.2 Reimbursement Definition. Damage to and loss of equipment refers to damage and loss as a result of the emergency situation rather than from the wear and tear expected in the normal operation of the equipment. The owner of damaged or lost equipment is entitled to repair of the equipment, or replacement of the equipment if repair is not feasible for economic or other reasons. The cost of replacement in that circumstance will be the current cost, in the Greater Houston' Metropolitan Area, of new equipment with specifications similar to that of the equipment to be replaced. The current cost of new, similar equipment is to be determined as of the date of the damage or loss that necessitates the replacement of the equipment. 2.3 SURVIVABILITY. ALL PROVISIONS CONCERNING REIMBURSEMENT OBLIGATIONS UNDER THIS AGREEMENT SHALL SURVIVE THE TERMINATION DATE. ARTICLE III INDEMNIFICATION 3.1 INDEMNIFICATION, COMPANY RECEIVING ASSISTANCE FROM CIMA CORPORATION OR CIMA MEMBERS, SHALL INDEMNIFY, DEFEND AND HOLD HARMLESS (A)CIMA; AND (B)EACH AND EVERY CIMA MEMBER AND THE AGENTS DIRECTORS OFFICERS AND EMPLOYEES THEREOF PROVIDING ASSISTANCE (BOTH (A) AND B)HEREINAFTER"INDEMNIFIED. PARTIES"),FROM AND AGAINST ANY AND ALL DEMANDS, CAUSES OF ACTION, DAMAGES, INJURIES, FINES (INCLUDING PENALTIES OR OTHER CHARGES OR COSTS IMPOSED BY ANY FEDERAL, STATE OR LOCAL AUTHORITY), LIABILITY, ATTORNEY FEES, LITIGATION COSTS AND EXPENSES, AND LOSSES OF ANY KIND OR CHARACTER FOR SICKNESS OR INJURY TO OR DEATH OF ANY PERSON (INCLUDING ANY EMPLOYEE), AND FOR LOSS OR DAMAGE TO ANY PROPERTY OWNED OR OPERATED BY CIMA CORPORATION, A CIMA MEMBER, OR ANY OTHER PERSON OR ENTITY (INCLUDING ANY EQUIPMENT AND ANY NATURAL RESOURCES)RESULTING DIRECTLY OR INDIRECTLY FROM THE RECEIVING COMPANY'S USE OF EQUIPMENT OR EMPLOYEES OR FROM THE RESPONSE ACTIONS UNDERTAKEN BY CIMA CORPORATION OR CIMA MEMBERS. THIS INDEMNIFICATION IS APPLICABLE TO ALL EVENTS OCCURRING: (1) ON THE ACTUAL PROPERTY OF COMPANY RECEIVING ASSISTANCE OR(2) ON PROPERTY UNDER THE CONTROL OF THE COMPANY RECEIVING ASSISTANCE (SUCH AS 1 _LEASED WAREHOUSE SPACE). DEMANDS CAUSES OF ACTION DAMAGES LEA � ' INJURIE S, FINES LIABILITY LOSSES OF ANY KIND OR CHARACTER FOR SICKNESS OR DEATH OF ANY PERSON INCLUDING ANY EMPLOYEE AND FOR LOSS OR. DAMA GE TO ANY PROPERTY OCCURRING OFF OF THE ACTUAL PROPERTY OF COMPANY RECEIVING ASSISTANCE OR OFF THE PROPERTY UNDER THE CONTRO L OF THE COMPANY RECEIVING ASSISTANCE WILL BE GOVERNED BY COMMON LAW. 3.2 GROSS NEGLIGENCE WILLFUL MISCONDUCT CRIMINAL LAW. COMPANY AGREES THAT THE INDEMNITIES PROVIDED FOR IN THIS AGREEMENT SHALL BE EFFECTIVE REGARDLESS OF THE NEGLIGENT ACTS OR OMISSIONS OF THE INDEMNIFIED PARTIES WHETHER SUCH NEGLIGENCE BE SOLE JOINT OR CONCURRENTq ACTIVE OR PASS AND REGARDLESS OF WHETHER LIABILITY WITHOUT FAULT IS IMPOSED ON THE INDEMNIFIED PARTIES EXCEPT'TO THE EXTENT THAT LIABILITY ARISES BY REASON OF THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF THE INDEMNIFIED PARTIES.IN ADDITION THE COMPANY SHALL NOT BE LIABLE TO ANY INDEMNIFIED PARTY FOR ANY CLAIMS OR PENALTIES ARISING OUT OF OR RESULTING FROM THE INTENTIONAL VIOLATION OF ANY CRIMINAL LAW. 3.3 Insurance. COMPANY also covenants and agrees that the indemnity and hold harmless provisions are not limited,restricted,or in any way affected by the amount of insurance carried by COMPANY. 3 A SURVIVABILITY. ALL INDEMNITIES MADE BY COMPANY UNDER THIS AGREEMENT SHALL SURVIVE THE TERMINATION DATE. 3.5 DEFINITIONS. "DEFEND" MEANS TO: (1)PROVIDE LEGAL COUNSEL AND DEFENSE TO THE CIMA CORPORATION OR AT THE CIMA CORPORATION'S OPTION TO REIMBURSE CIMA CORPORATION FOR ALL REASONABLE ATTORNEYS FEES GENERATED BY COUNSEL SELECTED BY CIMA CORPORATION• AND 2 TO PAY ALL OTHER COSTS OF DEFENSE INCLUDING ALL APPEAL AND SUPERSEDEAS BONDS. ARTICLE IV MISCELLANEOUS ; 4.1 Designated Emergencies - Participation VoluntaKy. There is no obligation on any CIMA Member to contribute equipment or manpower to any particular emergency.Participation in any particular emergency is wholly voluntary based on the needs and availability of a CIMA Member to respond.Thus,there is no liability on CIMA Corporation or any CIMA Member for failing to respond to an emergency situation under this Agreement. 4.2 Governiniz Law. This Agreement shall be governed by,and construed in accordance with,the laws of the State of Texas. 4.3 Attorneys Fees. In the event that any legal action is instituted between the parties pertaining to the interpretation or enforcement of the terms of this Agreement,the prevailing party shall be entitled to recover a reasonable allowance for attorneys fees and court expenses,to be fixed and determined by the court in which such action is filed. 4.4 Notices. All notices,demands or communications relating to this Agreement that CIMA Corporation or any CIMA Member may wish to send to COMPANY shall be in writing. 4.5 Severabilit . If any provision of this Agreement or portion thereof should be declared invalid for any reason, the invalid provisions or portion thereof shall be deemed omitted and the remaining terms shall nevertheless be carried into effect. 4.6 Waiver. The waiver of a breach of any term or condition of this Agreement shall not be deemed to constitute the waiver of any other breach of the same or any other term or condition. 1 4.7 Number and Gender. Whenever required by the context,the singular number shall include the plural,and the masculine or neutral gender shall include all genders. 4.8 Entire Agreement. This Agreement contains the entire understanding between the parties and supersedes any prior written or oral agreements between them respecting the subject matter contained herein.No subsequent modification of this Agreement shall be effective unless it is in writing and signed by all parties. 4.9 Assignment; Binding Effect. COMPANY may not assign its rights and obligations under this Agreement. Subject to and without affecting the prohibitions herein with respect to assignment,this Agreement shall be binding on the parties and their respective successors and assigns. 4.10 Non-members: Nothing in this Agreement shall entitle any person or entity not a party to this Agreement to institute any claims,causes of action,remedy,or right of any kind arising out of the operations conducted pursuant to this Agreement. 4.11 Term. Unless earlier terminated by COMPANY or CIMA Corporation,this Agreement shall remain in force for so long as COMPANY is engaged in response activities relating to the Incident. NOTWITHSTANDING SECTION 3.11 OF THIS ARTICLE, THE REIMBURSEMENT PROVISIONS AND INDEMNITIES CONTAINED IN THIS AGREEMENT SHALL REMAIN IN EFFECT BEYOND THE TERMINATION OF RESPONSE ACTIVITIES UNDER THIS AGREEMENT. IN WITNESS WHEREOF,COMPANY and CIMA Corporation executed this Agreement by their duly authorized representatives on the date indicated below. Dated: Channel Industries Mutual Aid Organization("CIMA") By[signature] Name[printed] Title [Note:Any individual CIMA Member,or CIMA Specialist,or CIMA officer may sign above on behalf of CIMA]. Dated: [COMPANY] By[signature] Name [printed] Company Title WITNESSED BY: [Municipality,Governmental Agency or Entity] By[signature] Name[printed] Title Agency Dated