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Ordinance No. 12,248()RF:)[NAN(7l-,'NO. 12,248 ,\N (),RUDINANCE OF NUIE CITY COUNCIL OF Will-, CITY OF 13AYTOWN, "11AXAS, MJAMCMUZINCi z,kNL:) I TIJF� N/1,/%.11,C)R, '1-(-j cnw c7i.muc -ro m-i-imm ro z%>N INDI.JSTRUAL L,')JS­YR,1CT AGREEMENT WITH LAINUXESS (CC-)RPOR.ATION; ANLJ PR(--)VlDJNC3 F'jOR Tl IF EFFEC'FIVE', IT BY "ITIF C11-Y C(A.-INC7,11, OV 171111 CITY (317 BAYTOWN, T] '- X A S: Sec(icnl I - That (hC City COLUICH CWHIC City of Haylown, womas, hereby aud-toMes, ruxi chrects the Mayor and City Clerk of ti-re City, Raytown to execute and allest to ail Industrial U.)istrict Agreement xvith LAINITCESS Corponution. A. copy of saki IndustHal 13410et Agreernent is aLttached hcroto, rrtarkocl Fxhibit -'A- and irtcorporated herein lbr all intents and, F"WPOSCS. Section �: '13is ordinance sti all talc effect. in-itriediately and after its 1-.)assage by the City ('(sulmoil oFilic, City c31'Bakyw3xvin ,--7 INTR(IDUCU',L), RF,'AV,), and INXIMET-) t-).,y, the allirmative >mte ("P1,01C C."it- ,,, Council orthe City of Haytovnv this the 9"' dav ol-Pvlay, 2013. .10 I 1.11q),114 al Ity C, lut-L� APPROVLT) AS -FO ]:-'O,R,N,,I: :`*.ply , ilt- ily ICE IETTIL Exhibit "A" Industrial District Agreement This Industrial District Agreement ( "Agreement ") is made and entered into between the City of Baytown, Texas, a municipal corporation in Harris and Chambers Counties, Texas, hereinafter also referred to as "Baytown" or "City," and LANXESS, a Delaware corporation, hereinafter referred to as "Property Owner." In consideration of the promises and of the mutual covenants and agreements herein contained, it is agreed by and between the City and Property Owner as follows: I. Parties This Agreement is made under the authority of Texas Local Government Code Annotated §42.044 (Vernon 1993), article XI, §5 of the Texas Constitution and other applicable law. The parties to the Agreement and their addresses are: 1. The "City" City of Baytown Attn: City Manager P.O. Box 424 Baytown, TX 77522 Copy to: City of Baytown Attn: City Attorney P.O. Box 424 Baytown, TX 77522 2. The "Property Owner" Tax Statement Address: LANXESS Corporation LANXESS Corporation Attn: John Shaffer Attn: John Shaffer 11 I RIDC Park West Drive 11 I RIDC Park West Drive Pittsburgh, PA 15275 Pittsburgh, PA 15275 II. Identification of Property and Industrial District This Agreement includes provisions concerning certain real estate and tangible personal property owned or leased by the Property Owner. Real estate located outside the corporate limits of the City is sometimes referred to herein as the "affected area," and it is described in Exhibit A, which is attached to this Agreement and made a part hereof. Acting pursuant to the above mentioned authority, the City Council of the City has by ordinance, designated the affected area as an industrial district, the same to be known as Baytown Industrial District No. 3 (the "Industrial District "). III. Tenn The term of this Agreement is seven tax years, from 2013 through 2019, unless it is sooner terminated under the provisions hereof. This Agreement shall be effective and binding on the parties hereto upon execution hereof on behalf of the parties to this Agreement and shall remain in effect for seven years. This Agreement supersedes any prior existing agreements between the Property Owner and the City relating to the subject matter hereof and governing the affected area; to the extent any such prior existing agreement required payment on or after January 1, 2013, such payment obligations are hereby canceled and are superseded by the provisions contained herein. IV. Limited Immunity from Annexation by the City In consideration of the obligations of the Property Owner herein set forth, the City hereby guarantees for the term of this Agreement the immunity of the affected area from annexation of any type by the City except for such parts of the affected property as may be necessary to annex property owned by third parties within the Industrial District that the City may decide to annex. Additionally, this Agreement shall not affect the continuation of any limited purpose annexation status to which the affected area is now subject. V. Industrial District Payment As part of the consideration for the City's undertakings as set forth above, the Property Owner agrees to pay to the City on or before December 3151 of each year during the term hereof a sum of money equal to: (1) the fair market value as determined by the City, of all of the Property Owner's land and all other tangible property, real, personal or mixed, within the affected area ➢ on January 1, 2002, ➢ on January 1, 2009, ➢ as specified and /or used in a previous Industrial District Agreement between the Property Owner and the City, or ➢ as most recently certified by the chief appraiser of the appraisal district and/or approved by the Industrial Appraisal Review Board established and appointed by the City Council, as of the date of this Agreement, whichever is greater hereinafter referred to as the "Base Year." Such fair market value for the Base Year is agreed to and stipulated by the parties to be SIXTY -ONE MILLION TWO HUNDRED TWELVE THOUSAND SEVEN HUNDRED AND NO /100 DOLLARS ($61,212,700.00), less the fair market value in the Base Year as determined by the City of that portion of the Property Owner's property, real, personal or mixed, which was located within the industrial district on the effective 2 date of this agreement and subsequently annexed by the City, the difference of which is hereinafter referred to as the "Base Year Value," multiplied by (2) the property tax rate per $100.00 of assessed valuation adopted by the City Council for the City, multiplied by the applicable Yearly Payment Rate as detailed below. The applicable Yearly Payment Rate is the sum of the Industrial District Payment Rate plus the Public Community Improvement Rate and shall be determined using the following chart: VI. Valuations For the purpose of providing a procedure for determining and collecting the amounts payable by the Property Owner hereunder, there are hereby adopted and made a part hereof all provisions of the Constitution and statutes of the State of Texas pertaining to ad valorem taxation as amended throughout the term of this Agreement (including, in particular, the Texas Property Tax Code), except, however, that (i) to the extent that any of such provisions would require the assessment of the Property Owner's property on an equal and uniform basis with property in the general corporate limits of the City, the provisions of this Agreement will control where in conflict with the provisions of such laws and (ii) the income method of appraisal as described in Section 23.012 of the Texas Property Tax Code shall not be limited to only properties for which a rental market exists. Specifically, nothing contained herein shall limit the income method of appraisal specified in Section 23.012 of the Texas Property Tax Code to only properties for which a rental market exists, instead if such method is used, the chief appraiser shall: 1. use income and expense data pertaining to the property, if possible and applicable; 2. make any projections of future income and expenses only from clear and appropriate evidence; 3. use data from generally accepted sources in determining an appropriate capitalization rate; 4. determine a capitalization rate for income - producing property that includes a reasonable return on investment, taking into account the risk associated with the investment. INDUSTRIAL PUBLIC YEARLY TAX YEAR, DISTRICT COMMUNITY PAYMENT PAYMENT RATE IMPROVEMENT RATE 2013 .61 .01 .62 2014 .62 .01 .63 2015 .62 .01 .63 2016 .63 .01 .64 2017 .63 .01 .64 2018 .63 .01 .64 2019 .64 .01 .65 VI. Valuations For the purpose of providing a procedure for determining and collecting the amounts payable by the Property Owner hereunder, there are hereby adopted and made a part hereof all provisions of the Constitution and statutes of the State of Texas pertaining to ad valorem taxation as amended throughout the term of this Agreement (including, in particular, the Texas Property Tax Code), except, however, that (i) to the extent that any of such provisions would require the assessment of the Property Owner's property on an equal and uniform basis with property in the general corporate limits of the City, the provisions of this Agreement will control where in conflict with the provisions of such laws and (ii) the income method of appraisal as described in Section 23.012 of the Texas Property Tax Code shall not be limited to only properties for which a rental market exists. Specifically, nothing contained herein shall limit the income method of appraisal specified in Section 23.012 of the Texas Property Tax Code to only properties for which a rental market exists, instead if such method is used, the chief appraiser shall: 1. use income and expense data pertaining to the property, if possible and applicable; 2. make any projections of future income and expenses only from clear and appropriate evidence; 3. use data from generally accepted sources in determining an appropriate capitalization rate; 4. determine a capitalization rate for income - producing property that includes a reasonable return on investment, taking into account the risk associated with the investment. A. Valuation of Property Inside the Corporate Limits but Subsequently Disannexed Land, improvements and tangible property, real or mixed, of the Property Owner, which is disannexed from the corporate limits of the City during the term of this Agreement, shall become part of the affected area immediately upon disannexation. The value for such land, improvements and tangible property, real or mixed, shall be based upon the appraised value for the Base Year, as finally determined by the Chambers County Appraisal District or its legal successor (or through administrative or judicial appeal of the Chambers County Appraisal District's determination) and shall be added to the Base Year Value specified in Article V for purposes of payment hereunder on January 1 of the year the same is disannexed. B. Valuation of Property Outside the Corporate Limits The parties hereto recognize that said Chambers County Appraisal District is not required to appraise the land, improvements, and tangible property, real or mixed, in the affected area, which is not within the corporate limits of the City, for the purpose of computing the payments hereunder. Therefore, the parties agree that to determine the fair market value of all of the Property Owner's land, improvements, and tangible property located outside the corporate limits of the City in accordance with the market value computation contemplated in the Texas Property Tax Code for the purpose of calculating the Property Owner's payment in the manner described above, the City may choose to use the appraised value for the Base Year, as finally determined by the Chambers County Appraisal District (or through administrative or judicial appeal of the Chambers County Appraisal District's determination), or by appraisal conducted by the City and /or by an independent appraiser of the City's selection, and at the City's expense. Nothing contained herein shall ever be construed as in derogation of the authority of the Chambers County Appraisal District to establish the appraised value of land, improvements, and tangible personal property in the annexed portion for ad valorem tax purposes. C. Binding Effect Determination of Industrial District fair market values in the above - stated manner outside the corporate limits shall be made by the City and approved by the Industrial Appraisal Review Board. Such final fair market value as approved by the Industrial Appraisal Review Board shall be final and binding unless either party within thirty (30) days after receipt of the Board's determination petitions for a Declaratory Judgment to the Civil District Court of Harris County, Texas, as provided for by Section XIV hereof. In determining the fair market value of property and improvements as used herein, the Industrial District Appraisal Board shall base its determination on the fair market value as defined in Section VI herein, giving due consideration to comparable present day facilities considering and giving effect to sound engineering valuation practices relative to service life, life expectancy, process and functional obsolescence. 4 D. Statements The City shall mail one statement to the Property Owner on or about December l of each year showing the total amount due on December 31 of such year pursuant to this Agreement. Such statement shall be mailed to the "Tax Statement Address" noted in this Agreement. Any amounts due on December 31 that are not paid when due shall become delinquent on January l of the following year. Provided, however, if the tax statement is mailed after December 10, the delinquency date is postponed to the first day of the next month that will provide a period of at least 21 days after the date of mailing for payment of the amount due. Delinquent amounts shall be immediately subject to the same penalties, interest, attorneys' fees and costs of collection as recoverable by the City in the case of delinquent ad valorem taxes. The City shall have a lien upon the Property Owner's land within the affected area upon any delinquency in the Industrial District Payment. E. Valuation Contests If any differences concerning the appraised values shall not have been finally determined by the due date of the Property Owner's payment hereunder and the Property Owner desires to pursue any additional available remedies, the Property Owner shall, without prejudice to such remedies, pay to the City by December 31 of each year (subject to the exception in the preceding paragraph for statements mailed after December 10), such amount as is provided in the Texas Property Tax Code, as amended throughout the term of this Agreement, for payments made under such conditions by owners of property within the general corporate limits of the City subject to ad valorem taxation. Any refund payable by the City to the Property Owner hereunder shall be paid within 60 days after receipt by the City of both Chambers County Appraisal District's form notification that the appraised value of the property has been reduced and a written refund request by the Property Owner; if not paid timely, the refund amount shall bear interest at eight percent per annum beginning 60 days after the City received both the Property Owner's written refund request and the Chambers County Appraisal District's formal notification that the appraised value of the property has been reduced. VII. Compliance with Law The City and the Property Owner mutually recognize that the health and welfare of Baytown residents require adherence to high standards of quality in the air emissions, water effluents and noise, vibration and toxic levels of those industries located in the Industrial District, and that development within the District may have an impact on the drainage of surrounding areas. To this end, the Property Owner and the City agree that the same standards and criteria relative to noise, vibration and toxic levels and drainage and flood control which are adopted by the City and made applicable to portions of the City adjacent to the Industrial District shall also be applicable to the affected area. The Property Owner agrees that any industrial or other activity carried on within the affected area will be constructed in strict compliance with all applicable valid state and federal air and water pollution control standards. If the Property Owner's property within the affected area is 5 subject to the Occupational Safety and Health Act, 29 U.S.C. 65, et seq., as amended, then the Property Owner shall undertake to ensure that its facilities and improvements in the affected area comply with the applicable fire safety standards of such act and the resolutions from time to time promulgated hereunder (the "OSHA Standards "), but there shall be no obligation to obtain any permits of any kind from the City in connection with the construction, operation or maintenance of improvements and facilities in the affected area not located within the corporate limits of the City. Nonetheless, the Property Owner agrees that any structure built within the affected area shall be built in accordance with the building code adopted by the City in effect at the time of construction. The City and the Property Owner recognize that activities in the City's industrial districts are subject to regulation by other governmental entities, including the state and federal governments and their various departments and agencies. The City and the Property Owner also recognize that the City may have an interest in activities in the City's industrial districts that are regulated by other governmental entities. Nothing in this Agreement is intended to limit the City's right and authority to communicate its interest in, or opposition to, those activities to the applicable regulatory agencies or to participate, to the extent allowed by law, in any related administrative or judicial proceeding. VIII. Inspections The Chief Appraiser of the Chambers County Appraisal District and the City or its independent appraiser shall have the same right to enter and inspect the Property Owner's premises and the same right to examine the Property Owner's books and records to determine the value of the Property Owner's properties as are provided in the Texas Property Tax Code as amended. IX. Public Community Improvement The Property Owner may apply to the City for reimbursement for a Public Community Improvement Project designed to further the public community improvement goals of the City of Baytown. Such project, the duration of the project, and the location thereof must be approved in writing by the City Manager of the City based upon the public community improvement goals of the City in effect at the time of the application. The Public Community Improvement Project must be completed prior to the expiration of the Agreement year during which it is approved to be eligible for reimbursement, except if it is approved as a multi -year project. The Public Community Improvement Project may be for multiple years; however, in order to be eligible for reimbursement in accordance with this article, it must be completed prior to the expiration or termination of this Agreement. Further, the project may be constructed on the Property Owner's property; provided that the project is visible from and enhances a public way or other public property. Any reimbursement under this article shall be subject to the City Manager's determination that the completed Public Community Improvement Project meets or exceeds those improvement efforts proposed and approved prior to the start of the project. Reimbursement may not exceed the amount the Property Owner will pay to the City based solely upon the Public Community Improvement Rate established in Article V hereof during the tern of this Agreement. It is expressly understood and agreed that in any year during the term of this Agreement, the Property Owner shall not submit a request for reimbursement which exceeds the amount the Property Owner has paid to the City 6 based solely upon the Public Community Improvement Rate established in Article V hereof. If the Property Owner fails to receive the City Manager's approval of a Public Community Improvement Project prior to the expiration of an Agreement year, the Property Owner will have no claim to the monies paid to the City based upon the Public Community Improvement Rate and the City shall use such funds for a project consistent with the City's public community improvement goals. X. Default A. Default by Property Owner In the event of default by the Property Owner in the performance of any of the terms of this Agreement, including the obligation to make the payments above provided for, the City shall have the option, if such default is not fully corrected within sixty (60) days from the giving of written notice of such default to the Property Owner to either (i) declare this Agreement terminated or (ii) continue the term of this Agreement and collect the payments required hereunder. Notwithstanding any to the contrary contained herein, should the City determine the Property Owner is in default according to the terms and conditions of Section VII hereof, the City shall notify the Property Owner in writing by U.S. Mail, certified return receipt requested, at the address stated in this Agreement, and if such default is not cured within sixty (60) days from the date of such notice (the "Cure Period ") then such failure to cure shall constitute a material breach of this Agreement; provided that, in the case of a default under Section VII for causes beyond the Property Owner's control that cannot with due diligence be cured within such sixty (60) day period or in the event that the failure to cure results from ongoing negotiations with federal or state officials, administrative proceedings or litigation regarding the necessary cure steps, then the cure period shall be extended until such negotiations, administrative proceedings or litigation are concluded. B. Default by In the event of default by the City, the Property Owner may, if such default is not fully corrected within 60 days from giving written notice of such default to the City, terminate this Agreement. Upon such termination, both the Property Owner and the City shall be relieved of all further obligations hereunder, but the Property Owner shall not be relieved of the obligation to pay any amounts that accrued prior to such termination. In the event of termination, the City shall have the right to repeal the ordinance designating the affected area as an industrial district. Provided, however, if the termination occurs as a result of the City's exercising its option to terminate (as provided in the first sentence of this Section X), the City shall not have the right to annex the affected area into the general corporate limits of the City so as to subject the affected area to ad valorem taxes for any part of the period covered by the Property Owner's last payment hereunder. 7 XI. Notice Any notice to the Property Owner or the City concerning the matters to which the Agreement relates may be given in writing by registered or certified mail addressed to the Property Owner or the City at the appropriate respective addresses set forth on the cover page of this Agreement. Any such notice in writing may be given in any other manner. If given by registered or certified mail, the notice shall be effective when mailed. With the exception of annual bills for payments due herein, notice given in any other manner shall be effective when received by the Property Owner or the City, as the case may be. XII. No Further Expansion of Taxing Jurisdiction Nothing herein contained shall be construed to change or enlarge the jurisdiction, power or authority of the City over or with respect to the affected area as prescribed by applicable law, except as specifically provided in this Agreement. The Property Owner shall not be obligated by virtue of this Agreement, or the establishment of the industrial district covering the affected area not within the corporate limits of the City, to make any payments to the City in the nature of a tax or assessment based upon the value of the Property Owner's property in the affected area during the term of this Agreement other than the payments specified herein. Specifically, the Property Owner shall not be liable for any City taxes within the affected area, including, without limitation, City ad valorem taxes on taxable property within the affected area. X1I1. Reimbursement for Services If the Property Owner requests and receives mutual aid firefighting assistance and is a member of Channel Industries Mutual Aid organization ( "CIMA ") or similar organization, the Property Owner shall reimburse the City for costs incurred by the City in providing fire protection services to the Property Owner as shall be provided in the charter, bylaws and agreements pursuant to which CIMA or such similar organization is organized and operates. If the Property Owner requests and receives mutual aid firefighting assistance and is not a member of CIMA or a similar organization, then the Property Owner shall be required to reimburse the City for costs actually expended by the City in providing any firefighting assistance to the Property Owner, including chemical and personnel costs. XIV. Declaratory Judgment Action If any disagreement arises between the parties concerning the interpretation of this Agreement, it is agreed that either of the said parties may petition any Civil District Court of Harris County, Texas, for a Declaratory Judgment determining said controversy and the cause shall be tried as other civil causes. If the controversy affects an Industrial District Payment, the Property Owner shall, pending final determination of said controversy, pay to the City on the due date the same amount which was paid to the City for the last preceding period as to which there was no 8 controversy concerning the amount owed by the Property Owner to the City. The Property Owner agrees to tender any additional amount of potential liability to the registry of the Civil District Court, Harris County, Texas, pending final determination of the controversy beyond any further appeal. XV. Assignment This Agreement shall not bestow any rights upon any third party, but rather, shall bind and benefit the Property Owner and the City only. If the Property Owner conveys all or any part of the property then covered hereby, the Property Owner shall notify the City within 30 days of the conveyance and shall thereafter cease to be obligated with respect to the property so conveyed and the Base Value shall be apportioned between the Property Owner and the grantee based upon the property conveyed, only if the grantee thereof enters into an Industrial District Agreement with the City with respect to such property so conveyed. No right or obligation under this Agreement may be sold, assigned or transferred. XVI. Authority The Property Owner covenants that it has the authority to enter into this Agreement by virtue of being either the legal or equitable owner of a possessory estate (including a leasehold estate) in the land comprising the affected area, which will not terminate before the expiration date of this Agreement. Additionally, 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 represents. XVII. No Municipal Services It is agreed that during the term of this Agreement, the City is under no obligation to provide any governmental, proprietary or other municipal services to the affected area. Specifically, but without limitation, it is agreed that the City shall not be required to furnish (1) sewer or water service, (2) police protection, (3) fire protection (4) road or street repairs, and (5) garbage pickup service. XVIII. Severability If any provision of this Agreement, or any covenant, obligation or agreement contained herein, including, without limitation, that term hereof, is determined by a court to be invalidated or unenforceable, such provision, covenant, obligation or agreement shall be reformed so as to comply with applicable law. If it is not possible to so reform such provision, covenant, obligation or agreement, such determination shall not affect any other provision, covenant, obligation or agreement, each of which shall be construed and enforced as if the invalid or unenforceable portion were not contained herein. Provided, further that such invalidity or unenforceability shall not affect 9 any valid and enforceable provision thereof, and each such provision, covenant, obligation or agreement shall be deemed to be effective, operative, made, entered into or taken in the manner and to the full extent permitted by law. Notwithstanding the above, if the application of this Section XVIII requires reformation or revision of any term that removes or materially diminishes the obligation of the Property Owner to make the payments to the City described herein (except in the event of a reformation that shortens the term of this Agreement), the City shall have the option to declare this Agreement terminated. XIX. Complete Agreement 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. XX. Non - waiver 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 to exercise any right or remedy occurring as a result of any future default or failure of performance. XXI. Ambiguities 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. XXII. Headings The headings appearing at the first of each numbered section in this Agreement are inserted and included solely for convenience and shall never be considered or given any effect in construing this Agreement or any provision hereof, or in connection with the duties, obligations or liabilities of the respective parties hereto or in ascertaining intent, if any question of intent should arise. XXIII. Choice of Law, Venue This Agreement shall in all respects be interpreted and construed in accordance with and governed by the laws of the State of Texas and the City, 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. 10 XXIV. ement Read The parties acknowledge that they have read, understand and intend to be bound by the terms and conditions of this Agreement. IN WITNESS WHEREOF, this Agreement is executed in multiple counterparts on behalf of the Proper Owner this - q day of —ry? a q , 2013, and on behalf of the City this — day of 2013. are • AsSiS ATTEST: LETICIA BRYSCH, City Clerk APPROVED AS TO FORM: IONACIO RAMIREZ, SR., City Attorney L S' Corpo 'don OD By. Printed Name v K"'& c �:o Title CITY OF BAYTOWN STEPHEN H. DONCARLOS, Mayor LOUISE RICHMAN, Finance Director RNUMneft Documents lConftctsUDA %LANXASSrenewal2ol3.doc 11 i ,v ,r STATrss OF TM (AS) P..XHW1T °A•1" COUNIT OF CHAMBERS) BLOCKH 16 - MALEIC ANHYDRIDB DESCRI7TON ate 5.7597 acre tract of land siosawl in the Cbriaoimt Smith Leagug Abstract 22. Cbm *em Conroy, Tacos. ad being out of and a part of that eerodtt 183.345 are tract as conveyed by Sidney S. McClendon, a Truster, to Mobsy Chemicel Corporation by Deed derod March 10,1970 and molded io Vohtma 313 at Pop 336 of the Dad Records of Cittmtbers County, Ttatas, Said 5.7597 o ctea befog pert ofBIcA 816 ofBayorCorporation North Plant and being snore particularly descr%ad by the folk aitrg osetes and bound:;, to wit .4OT1: ALL BEARINGS ARE LAMBERT GRID BEANNGS AND ALL COORDINATES REFER TO TIM STATE PLANS COORDINATE &YST1q4 SOUTH CEW AL ZOM AS DEPWED BY ARTIC1,E21.071 OF THE NATURAL RESOURCES CODE OF THE STATB OF TV A8, 1927 DATUM. ALL DISTANCES ARE ACTUAL DISTANCES. SCALE FACTOR -0-"M61. LAMBERT ORID BEARINGS TO PLANT 89ARINGS +1203114" IN TIM NORTHEAST AND SOLrM%VJ ST QUADRANT. - 12031'3x" IN TIMNOPJUN MIST AVD SOUTIWAST QUADRANT. REFERENCE IS MADETO MM PUTT OF EM DATE ACCOMPANYING THIS ME= AND 80IMS DESCRIPTION, BEGD*MG al a % Inds icon rod, with tap, net In the iater=11on of the West right -or- B wa line of* s" Sweet (150 feet wide dot -or Willi the North right -of wa) unc of Invenue (l SO feet wide dgh"f -wsy) at the Southeast corner of said Block ! 16 and the Southeast coma and POL%r OF BEGINMIO of this trees. Said Beginato.; point wmn a Beyer North !slant coorioaos of N"4860 and B-9310 and a State place Coat Wit of Y- 722,11M.S9 and X•3,299,7603. TMWCE# South 77 deg. 28 cola. 26 tee. War along the South Has of tbls tract, the Swath tin of acid Block BM and the Nor& right -of wey lira of 17° Avenue, for a dh m w of 700 feet to a'Zt;R" SpOw net for the Sowbwat eataer of this tract. T'HBNCE: North 12 deg. 31 Wn. 34 see. Wet along the West lice of this tract, over and aaoa a portion of said Block 016 fbr a distance of330 fact to &'W Spilco set fbr the Wastetancost Nostbwast comer of this back. } T)LBNCB: North 77 dog. 28 min. 26 sea. East along a North be of tlds tract for a divarta of 406.50 fed to a % itwhfioa tad, Wads esp, at hr an intattor corner of tMs r trm. 1 MU NM* North 12 ft 31 min. 34 too. Went along the NoAhaw cost weal Hoc of this trod for a disftce of 114.00 fcct to a %inch Mott rod, with capk set for the Hortbanaton t Northwest corderofthis cane. THENCE: North 77 dog. 29 min. 26 sea. East along a Nona lino of this watt for a dlstanes of 174.50 feat to a K inch iron rod. with cap, sat for the Nortbernrnost Northeast �, corner of thin tray LMN A f ti F:XHWIT "A -1" PAGE 2 — 5.7597 THENCE: South 13 deg, 31 rain. 34 M. Em Wong a Roth lice of this tract for a distsrsea of 114.00 feet to a point fimo which a Vs inch imu r4 wifb esp, sa as IW bear N 77 deg. 28 rain. 26 Wean. E. 2.00 tbd. for an inWw eomar aft arart TMNCE: Norio 77 deg. 28 mh 26 w- Esat along the Norio Haa of this OM for a dbwxe of t 19.00 feet to a % bob h= fob With eapr sal In do West 110"t-way lino of OV Shat for the No:dseaat eorrsorofttda tted; iimu wbleb &point fcrdwNaritteaet eotnerofHlock B16baorsNatb 12 dog. 31 min. 34 an.. West 70 fed. TIiMM, South 12 deg. 31 min. 3d:ee. East alotsg eba Pest lion. atthis aced, the East be ofaaid Block B16 and the Wen dgtwf a►Wy lice oM Sum for a diozoev of 330.00 feet to the PLACE OF BBODOMIG and containing whbin those bowtdariea 5.7397 acres of lased. SURVEYED: JANUARY, 2002 SURVEYOR'S CERTIFICATE 1, Juliana Ramary, RagWtv:W Psoti:saWW Land Surveyor Nn. 4379. do bereby aeriity Ow the ibragoing, field motaa wao prepared by me rrom as actual My tttade 04 lira gtottttd. undo vW supervision, and that all line& bounbAss and landmatlta are aetmrately described therein. VA TNES3 my hand and anal at Baytown. Texa& this the 31" day WORtraty. A. D., 2M J Ramsey glataed 8roteasEoual T.tatd Snts►epor No. 4379 0222068.VM I .. lXHLBIT HA-20' STATE OFTHXAS) COUNTY OF CHAMBERS) SLOCK A17 — MAIMC ANHYDRIDE in tltz ague. Abstrmt 22, Cbmabers Camay, Tem, and baiag out of and a part of that eataia 183345 am tray as eoavayW by SidneyS. Mc0endom ID, Thmtee, to MobayCbWeal Cotpontdon by Deed dated March 10. 1970 cad recorded in Volume 313 U Page 336 of the Deed Reeouls ofCbambom County, Tenets. gold 1.2497 saes being all orMock A17 of Bayer Corporation Norb Plant and beingtoote: patdeutorly daoa'bad by tlhe following haheeea and bouada, tom NOTE- ALL BEARINGS ARE LAMBERT GRID BEARINGS AND ALL COORDINATES REPER TO TEE STATE PLANE COORDINATE SYSTEM. SOUTH CENMALZONE. AS DEFINED BY ARTICLE 21.071 OF THE NATURAL RESOURCES CODE OF THE STATE: OF TEXAS, 1927 DATt.1M. ALL DISTANCBS ARE ACTUAL DISTANCES. SCALE FACTOR - 09998961. L' AMMr GRID BEARINGS TO PLANT BEARINGS +11031'34" W THE NORT KL43T AND SOUTHWEST QUADRANT. — 12031'34" W THE NORTHWEST AND SOUTHEAST QUADRANT. REFERENCE IS MADE TO THE PLAT OF EVEN DATE ACCOMPAA'YWG ?LDS UZIMS AND BOUNDS DESCRIMON. REGOiN 0 ass % inch iraatod, with ups. set 1n flea iritasacttott oftha Ensi tigtt-of- way line of"8" Street (150 feet wide A&M•ofrway) a th the South ftht-o[ way line of 170' Avaws Q s0 tiet wide tight -of -way) at etc Won' west coma of said Block A17 and the Northwest m= and POW OFBBGWNWO oftlris tract. Said Segueing Point having a Sayet.Notih Plant CooWlti a ofNi,47t0 ad 2-9460 and a Stns Pbtne Coordhhato of ,421,069.92 and X- 3.300,101.12. THENCE: North 77 deg. 28 Hein. 26 nee. East along the North line of this tract, the North Hoe of said Block A17 and the Soft si&M -of -way line of 17* Avenue, for a distance of 393.61 freat to a ib inch iron rod, With cap. ad for the Northeast Omer of this tract. THENCE: South 42 dtg. 22 lain. 40 sea Weal along the SouWwest Liao of this tract. the Southwest line of said Bloch A17 for a dirieaca of 481.80 feat to a % incb iron rod, whir cap, sat for the South cornet of this tract, in do East tight of way lithe of" W' Street. .. I . . i a "t. r EXIU13t '"A-r PAGE 3- 1°•447 ACRES THENCE: North 12 de$ 31 rain. 34 sac. Wat along Iht West lino of ft uaat. do Wat liar of said $lack A17 and the East sio"rwsy iitu of "8" Saoat for a dist�roa_ of 71530 1109 to to PKXCB IN BUMNINU g� a 1.2497 ssra ofl" SUiMUM: JANUARY, 2002 SURVEYOR'S CERTWICATE 1. JuUm Ramsay. Rt&crtd Pm%danal Lead Swvoyos No. 4379. do bereby astiiji that tba fongaiug field mm was prepared by me &M = scsual smvay MI& oo rite gtaund. uader ray tWwA o% &ad that 91 hoes, botatdmies &std landma:lca an Andre Wy WITNESS my bawd and seal at Baytown, Tom& this the 31° day a0watwy. A. D.. 2002. ierte Rorasay gistated professtoasJ Land Survryot No. 4379 02221)69.FND Exhibft B to Ground Leas Legal Descriptlon of the {Malefic Anbydride Additionan Land Baytown MaIaic (additional feud) , .. STATE OF TEXAS, COUNTY OF CHAMBERS) MBlelc'Traat 1' DESCRIPTION of a 1.1216 acre tract situated In the Chdstkm Smith league, Abstract No. 22, Chambers County, Texas and being out of and a part of Block B18, and out of s called 183.345 acre trect comrayed by Sidney S. McClendon, III, Trustee. To Mobay Chgmkst Company by deed dated March 10, 1970 and recorded In Volume 313 at Page 336 of the Deed Records of Chambers County, Texa , cciallydesaibsdty1h bilowing metes and bounds, to.** NOTE: BEARINGS REFER TO BAYER NORTH PLANT DATUM AND NOT TO ANY RECORDED PLAT OR OTHER INSTRUMENT, AND, OTHER THAN WEST 13AY ROAD, F. M. HIGHWAY 586 AND F. M. HIGHWAY 1405, THEY DO NOT EVIDENCE ANY PUBLIC STREETS OR AVENUES. REFERENCE IS MADE TO PLAT OF EVEN DATE ACCOMPANYING THIS METES AND BOUNDS DESCRIPTION. COMMENCING at a % Inch Iran rod being the Southeast comer of a 288.359 acne tract conveyed by Sidney S. McClendon, III, Trustee, to Mobay Chemical Company by deed dated March 10, 1970 and recorded In Volume 313 at Page 340 of the Deed Records of Chambers County, Texas, and the Northeast comer of herein said called 183.345 acre tract. THENCE: South 87°14'28' West for a distance of 1718.08 feet to a point for the Northernmost Northwest comer of a 5.7597 acre tract, being a Lease Site conveyed by Bayer CorporeSonf Company to Wells Fargo Rank, Trustee, by deed dated Decembor 28, 2001 ano recorded In Volume 838 at Pages 188, 268 and 360 of the Olftcial Public Records of Chambers County, Texas, and by Bayer Corporation Company to Walla Fargo Bank, Trustee, by deed dated March 1, 2002 and recorded In Volume 545 at Pages 113,178 and 237 of the Ofltdal Public Records of Chambers County, Texas, said point being Northeast comer and POINT OF BEGINNING of sold tract herein described. THENCE: SOUTH along.the East line of this tract and the Northemmost West line of said 8.7597 acre tract for a distance of 114.00 feet to a point fbr the Southeast corner of this tract and an Interior comer of said 8.7597 acre tract. THENCE: WEST along the South tine of this tract and the Westernmost North Itne of said 5.7597 acre bad for a distance of 560.50 feet to a point for the Southwest comer of this tract THENCE: NORTH along the Southernmost West line of this tract for a distance of 70.00 feet to a point for the Westernmost Northwest comer of this track In the North fine of said Block BIG. and In the South right of way Ilne of 16I+ Avenue. PAGE NO.2 — 1.1216 ACRES THENCE: EAST along the Westemmost North line of this track the North line of said Block 818, and the South right of way line of IV Avenue for a distance of 316.00 feet to a point for an interior carver of this bract. THENCE: NORTH along the Northenunost West line of this tract for a distance of 44.00 That to a point far the Easternmost Northwest comer of this boot. THENCE: EAST along the Easternmost North tine of this tract for a distance of 234.60 feet to the PLACE OF BEGINNING and containing wVb sold boundary 1.1215 acres. SURVEYORS CERTIFICATE I, JWlene Ramsey. Registered Professional Lend Surveyor No. 4379, do hereby certify that the foregoing fteld notes were prepared tram an office survey made under my supervision on My 27.204 and that all itnes, boundaries and landmarks are accurately dem bed therelm WITNESS my hand and seal at Baytoum, Texas, this the 276 day of May, A. 0., 2004. -01-, Jul! a Ramsey Re red Professional Land Surveyor No. 4379 Maleb b omt .doa STATE F T%CS) COUNTY O OF MBERS) Maleto'Tract Y DESCRIPTION of a 0.3114 of an acre tract situated in the Christian Smith League, Abstract No. 22, Chambers County Texas and being out of and a part of Block 816, and out of a called 183.345 scree tract conveyed by Sidney S. - — 41cClendon, 1111, Trustee, To Mobay Chemical Company by deed dated March 10, 1970 and recorded in Volume 313 at Page 336 of the Deed Records of Chambers County, Texas. This 02114 of an acre tract Is more particularly described by the foilowtng metes and bounds, %wit; NOTE: BEARINGS REFER TO BAYER NORTH PLANT DATUM AND NOT TO ANY RECORDED PLAT OR OTHER INSTRUMENT, AND, OTHER THAN WEST BAY ROAD, F. M. HIGHWAY 565 AND F. M. HIGHWAY 1405, THEY DO NOT EVIDENCE ANY PUBLIC STREETS OR AVENUES. REFERENCE IS MADE TO PLAT OF EVEN DATE ACCOMPANYiNO'THIS METES AND BOUNDS DESCRIPTION. COMMENCING at a % inch Iron rod being the Southeast comer of a 288.359 acre tract conveyed by Sidney S. McClendon, III, Trustee, to Mobay Chemical Company by deed dated March 10. 1970 and recorded In Volume 313 at Page 340 of the Deed Records of Chambers County, Texas, and the Northeast corner of herein sold caged 183.345 acre tract THENCE: South 82°07'13. West for a dletance of 1434.13 feet to a polyd for the Easternmost Northeast comer of a 5.7597 acre tract, being a tease Site conveyed by Boyar Corporation Company to Woes Fargo Bank, TrMetee, by deed dated• Decerrtbwr 28, k001 and reouVed fit-Volume 59$ at Psapes 188, 288' and 380 of the-Off i'al PublIaPecords 01 Chambers County, Texan, and by Bayer Corporation Company to Wells Fargo Bank, Trustee, by deed dated March 1, 2002 and recorded in Volume 646 at Pages 113,176 and 237 of the Official Public Records of Chambers County, Texas, sold point being Southeast comer and POINT OF BEGINNING of sold tract herein described. THRICE: WEST along the South One of this tract and the Easternmost North One of sold 5.7597 acre tract for a distance of 119.00 feet to a point for the Southwest comer of this tract, and an Interior comer of said 8.7597 acre tract THENCE: NORTH along thw West Ong of this tract, and the Northernmost East One of said 5.7697 scree tract for a distance of 114.00 feet to a point for the Northwest comer of this tract, and the Northernmost Northeast comer of said 5.7597 acre tract. PAGE NO.2 — 0.3114 OF AN ACRE THENCE: EAST song the North One of this tract for a distance of 119 feet to a point for the Northeast comer of this tract. THENCE: SOUTH along the East Me of this tract for a distance of 114.00 feet to the PLACE OF BEGINNING and containing within salo boundary 0.3114 of an acre. SURVEYOR'S CERTIFICATE I, Juliana Ramsey, Registered Professional Land Surveyor No. 4379, do hereby certify that the foregoing field rates were prepared from an ofte survey made under my supendslon on May 27.2004 and that aid iihes, boundaries and tandmwks are accurately described therein. WITNESS my hand and seal at Baytown. Texas, this the 27% day of May. A. D.. 2004. lane Ramsey s8istared Professonal land Surveyor No. 4379 Maisie trads.doe w .11 \ ' s .�N r< • M of San fill I RA j ♦ , ilb' # ca Ii I I I I n 41 i