Ordinance No. 12,403ORDINANCE NO.12,402
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAY TOWN,TEXAS,
AUTHORIZING THE CITY MANAGER TO EXECUTE AND THE CITY CLERK TO
ATTEST TO A COST-SHARE AGREEMENT WITH WAL-MART REAL ESTATE
BUSINESS TRUST FOR THE CONSTRUCTION OF A NEW WATERLINE FROM
THE NEEDLEPOINT WATER TOWER TO STATE HIGHWAY 146;AND
AUTHORIZING THE CITY MANAGER TO EXECUTE AN ESCROW AGREEMENT
WITH WAL-MART REAL ESTATE BUSINESS TRUST AND CHARTER TITLE
COMPANY FOR THE FUNDING ASSOCIATED WITH THE COST-SHARE
AGREEMENT HEREIN AUTHORIZED;AND PROVIDING FOR THE EFFECTIVE
DATE THEREOF.
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BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN,TEXAS:
Section 1:ThattheCityCouncil of theCity of Baytown,Texas,hereby authorizes theCity
Manager toexecuteandtheCityClerktoattesttoa Cost-Share Agreement with Wal-Mart Real Estate
BusinessTrust,forthe construction of anewwaterlinefromthe Needlepoint Water Tower loState
Highway 146.Acopyofsaid agreement is attached hereto as Exhibit "A."and incorporated herein forall
intentsandpurposes.
Section2:ThattheCityCounciloftheCityofBaytown,Texas,herebyauthorizestheCity
Manager toexecutean Escrow Agreement with Wal-Mart Real Estate Business TrustandCharterTitle
Company forthe funding associated with theCostShare Agreement authorized inSection1 hereinabove.
Acopyofsaid agreement is attached heretoas Exhibit "B,"and incorporated hereinfor all intents and
purposes.
Section3:This ordinance shalltakeeffect immediately fromandafteritspassagebythe
CityCouncil of theCity of Baytown.s?
INTRODUCED,READandPASSEDbytheaffirmativevote of tljcCity Council of theCity of
Baytown this the 18,h day of November,2013.
ATTEST:/fit,.
LETICIA BR^CFLCity:C\k
APPROVED AS T(
1GNACIO RAMIREZ,SR.|C/y Attorney
^STEPHEN T+-DONCARLOS,Mayor
RAKarcn\l:ilcs'CilyCouncil'Ordinanci;s\20l3VNovcmbct 18\CostShorcAgrcementwilhWal-Mart.doc
Exhibit "A"
Texas-Baytown
(I-10atSH146)
Store No.2439-00
COST-SHARE AGREEMENT
THESTATEOF TEXAS §
§
COUNTY OF HARRIS §
This Cost-Share Agreement (the "Agreement")is made and entered into between theCity of
Baytown,a municipal corporation located in Harris and Chambers Counties,Texas (the "City"),
whose address for purposes hereofis P.O.Box 424,Baytown,Texas 77522,and Wal-Mart Real
Estate Business Trust,a Delaware statutory trust,("Wal-Mart"),whose address for purposes here
of is2001S.E.10th Street,Bentonville,Arkansas 72716-0550.
WITNESSETH:
I.
1.1 Project.Subjectto and upon the terms,provisions and conditions hereinafter set forth,
the parties hereto agree that Citywill install a 12"waterline from the Needlepoint Water
TowertoState Highway 146 along Needlepoint Road,being approximately 8,000 feet
(the "Project").The Project willbe designed and constructed tomeetallCity standards
and code requirements,and shall be capable of providing tothe adjacent property owned
by Wal-Mart aminimum of 2,500 gallons per minuteat20 pounds per square inch of
pressure during average daily demand onthesystemin order to provide fire protection
for the property.The plans and specifications for the construction of the waterline shall
besubmittedtotheCityandto Wal-Mart for approval,andwillbesubjectto approval of
theCityand Wal-Mart,priortothe award of theconstructioncontractforthewaterline.
1.2SubstantialCompletion.The Project shall beconsideredsubstantially complete whenit
hasbeencompletedin accordance withthe approved plansand specifications,is
operational andisreadyforuseforitsintended purpose.Substantial completion of the
Project shall be determined bythe independent engineer selectedbytheCityforthe
design of the Project,and,atthe election of Wal-Mart,shallbesubjecttoverificationby
anindependentengineerselectedby Wal-Mart.Followingtheoccurrence of substantial
completion,theCity shall notify Wal-Mart andtheEscrowAgent of sameand shall
includewithsuchnoticea written certification from an independent engineercertifying
astothedateonwhich substantia]completion of the Project wasattained(the
"Certificate of Completion").If Wal-Mart desires toobtainitsownindependent
verification that substantial completion has occurred as described hereinabove,Wal-Mart
musttendernotice of such election totheCitywithinfifteen(15)days of itsreceipt of the
Certificate of Completion.Thereafter,Wal-Mart musthaveitsindependent verification
performed not later than thirty (30)days following receipt of the Certificate of
Completion.Should Wal-Mart fail totimely provide noticeortimely tender its
independent verification tothe City,the Escrow Funds shall be released totheCity
pursuant to Section 1.3.
Cost-Share Agreement.Page 1
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1-3 Disbursement of Escrow Funds.In the event (i)substantial completion of the Project is
attained onor before March 15,2014,or (ii)Wal-Mart fails to timely provide notice ofits
election to have performed an independent verification orto timely provide such
independent verification to the City,the City shall be entitled to receive the Escrow
Funds.Intheevent substantial completion of the Project isnot attained onor before
March 15,2014,Wal-Mart may terminate this Agreement and be entitled to receive the
Escrow Funds upon termination.
II.
2.1 Wal-Mart's Obligations:Disbursement of Escrow tothe Citv.In addition to Wal-Mart's
obligations elsewhere in this Agreement,Wal-Mart hereby makes the following
agreementsand/or representations:
(a)Wal-Mart has reviewed the plans and specifications for the Project and desires to
participate inthe Project,asthe Project will provide for a looped watersystem,
obviatingtheneed for Wal-Mart to install awater pressurization systemonits
propertyforthe operation of its retail establishment.
(b)Withinten (10)days after the execution of thisAgreement,Wal-Martshall
depositwith Charter Title Company,located at4265SanFelipe,Houston,TX
77027(the "Escrow Agent")cashinthe amount of FOUR HUNDRED
THOUSAND AND NO/100 DOLLARS ($400,000.00)(the "Escrow Funds")for
its cost-share of the Project.The Parties understand and agree thatthisamountis
thetotalamountforwhich Wal-Mart shall beliablefortheProjectandthatsuch
amountisnotsubjecttoadjustmentafterbidpriceshavebeenreceived.
(c)The legal titletothe Project and all appurtenances related theretoshallatalltimes
bevestedintheCity;and Wal-Mart shallhavenoclaimthereto.As such,Wal-
Martshallhavenorightor privilege toremoveorinterferewithanypartor
portion ofthe Project duringorafter construction.
(d)Intheeventthe Project is substantially completebyMarch15,2014,theCity
shalldeliverwrittennoticetoWal-MartandtoEscrow Agent attheaddress
specifiedinSection4.8andsubsection(b)of thissection,whichnoticeshall
includeacopy of the Certificate of Completionspecifyinga substantial
completion dateonorbefore March 15,2014.Unless,within thirty(30)days
after receiving suchnoticeandCertificate of Completion,Escrow Agent receives
awrittenobjection from Wal-Mart,evidence of timely notice of its performance
of an independent verificationbeingsenttothe City,andan engineer's certificate
statingthat substantial completiondidnotoccuronorpriortoMarch 15,2014 or
suchotherdate agreed tobythe parties inwriting,Escrow Agent shallpaythe
EscrowFundstotheCityuponthe expiration of suchthirty(30)dayperiod.If
Escrow Agent receivessuchobjectionandengineer'scertificate within suchthirty
(30)day period,Escrow Agent shall not disburse the Escrow Funds to either party
Cost-Share Agreement.Page 2
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unless anduntil authorized todosobyjoint instructions signed byboth Wal-Mart
andtheCity.
2.2 Citv's Obligations:Disbursement of Escrow Funds to Wal-Mart.In addition totheCity's
obligations elsewhere inthis Agreement,theCity shall havethefollowing obligations:
(a)TheCity shall advertise for bids for the construction of the Project in accordance
withthe Project's plans and specifications.Afterthereceipt of thefundsthat are
required tobe tendered by Wal-Mart pursuant to Section 2.1(b),theCitywill
award the construction of the Project tothelowest responsible bidderand shall
payallcostsand expenses of Project construction,including,notbyway of
limitation,thecosts of all materials,labor andelectricityusedinconnectionwith
suchconstructionandall license,permit orinspectionfeesthatmaybechargedin
connectionwithsuchwork.TheCity's contract documents will requirethatits
contractor constructthe Project in accordance withtheplansandspecifications
and continue such construction efforts thereafter ina diligent manner untilthe
Project iscompletedand accepted bytheCity.
(b)Upon request,theCity shall provide an update onthestatus of the Project toWal-
Mart.
(c)If(i)the Project isnot substantially complete onorbefore March 15,2014,or
suchotherdate agreed tobythe parties inwritingand(ii)Wal-Martexercisesits
righttoterminatethisAgreementbydeliveringwrittennotice of terminationto
theCityandtheEscrowAgentin accordance withSection4.8and Section 2.1(b),
then,unlesswithinthirty(30)daysafterreceivingsuchterminationnotice,
Escrow Agent receivesawrittenobjectionfromtheCity,accompaniedbya
Certificate of Completion specifying a substantial completiondateonorbefore
March 15,2014,orsuchotherdatetowhichthepartiesagreedin writing,Escrow
Agent shallbeauthorizedtopaytheEscrowFundstoWal-Martuponthe
expiration of suchthirty(30)day period.If Escrow Agent receivessuchobjection
andCertificate of Completionwithinsuchthirty(30)dayperiod,Escrow Agent
shallnotdisbursetheEscrow Funds toeitherpartyunlessanduntilauthorizedto
dosoby joint instructionssignedbybothWal-MartandtheCity.
2.3EscrowAgreement.Concurrently,withtheexecution of this Agreement,Wal-Martand
theCityhaveenteredintoan escrow agreement withtheEscrowAgentsetting forth the
rights of thepartiestoreceivetheEscrow Funds asdescribedinSections2.1and2.2
III.
3.1 Term.Subjecttoandupontheterms and conditions set forth herein,thisAgreement
shall continuein force andeffect from theEffectiveDate(as hereafter defined)untilthe
final completion and acceptance of the Project bytheCityunless terminated earlier.
Cost-Share Agreement.Page 3
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IV.
Texas-Baytown
(I-10atSH146)
Store No.2439-00
4.1 Non-Waiver.Failure of the either party to declare any default immediately upon
occurrence thereof,or delay in taking action in connection therewith,shall notwaive
such default,butthe non-defaulting party shall have the right to declare any such default
atanytimeandtakesuch action as might be lawful or authorized hereunder.
4.2 Default.Notwithstanding Section 2.1(d),a non-breaching party shall have the right to
declare the breaching party in default and terminate the Agreement if the breaching party
defaults inthetimely performance ofany obligation imposed herein anddoesnotcurethe
default within fifteen (15)days (unless another period of timeis specified herein)after
written notice describing the default in reasonable detail hasbeengiventothe breaching
party or,if the non-breaching party determines thatthedefaultcannot reasonably be
cured withinthe fifteen (15)day period,if the breaching party doesnotcommence
curative workwithinthe fifteen (15)day period and prosecute theworkto completion
with diligence.Shouldthis Agreement be terminated,the parties shallbe relieved of all
further obligations herein and,the Escrow Funds shall be disbursed to Wal-Mart except if
the Project is substantially complete as contemplated by section 2.1(e).
4.3 Remedies Cumulative.All rights and remedies of theCity and/or Wal-Mart under this
Agreementshallbecumulativeandnoneshallexcludeanyotherrightsorremedies
allowed by law.
4.4Amendments.This Agreement maynotbe altered,changed or amended,exceptbyan
instrumentinwriting,signedbyboth parties hereto.
4.5 Release.BythisAgreement,theCitydoesnotconsentto litigation orsuit,andtheCity
herebyexpresslyrevokesany consent to litigation thatitmayhave granted bytheterms of
thisAgreementoranyother contract or agreement,any charter,or applicable statelaw.
Nothing containedhereinshallbeconstruedinanywaysoasto waive in whole orpartthe
City's sovereignimmunity.Wal-Mart assumes full responsibilityforitsobligationsunder
thisAgreement performed hereunder and hereby releases,relinquishes,discharges,and
holds harmless theCITY,its officers,agents,andemployeesfromallclaims,demands,and
causes of action of everykindand character,including thecost of defensethereof,forany
injurytoor death of any person (whether theybeeither of the parties hereto,their
employees,orotherthird parties)and anyloss of or damage to property (whetherthe
property bethat of either of the parties hereto,theiremployees,orotherthird parties)thatis
causedbyorallegedtobecausedby,arising outof,orinconnectionwithWal-Mart'swork
tobeperformed hereunder.This release shall applywithrespecttoWal-Mart'swork
regardless of whethersaidclaims,demands,andcauses of actionarecoveredin whole orin
partbyinsurance.
4.6No Arbitration.Notwithstanding anything tothe contrary contained inthis Agreement,the
City and Wal-Mart hereby agree that no claim or dispute betweentheCityand Wal-Mart
arising out of or relating to this Agreement shall be decided byany arbitration proceeding
Cost-Share Agreement.Page 4
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Texas-Baytown
(I-10atSH146)
Store No.2439-00
including,without limitation,any proceeding under the Federal Arbitration Act (9 U.S.C.
Sections 1-14),or any applicable State arbitration statute,including,butnot limited to,the
Texas General Arbitration Act,provided that in the event that the City is subjected to an
arbitration proceeding notwithstanding this provision,Wal-Mart consents tobejoined in the
arbitration proceeding if Wal-Marfs presence is required or requested by the City for
complete relief tobe recorded in the arbitration proceeding.
4.7 Assignment.Wal-Mart shall not assign this Agreement without first obtaining the written
consent oftheCity.
4.8 Notice.Any notice required tobe given under this Agreement or any statute,ordinance,or
regulation,shall be effective when given in writing and deposited inthe United States mail,
certified mail,return receipt requested,or by hand-delivery,addressed to the respective
parties as follows:
CITY
City of Baytown
Attn:City Manager
P.O.Box 424
Baytown,TX 77522
Withacopyto:
City of Baytown
Attn:CityAttorney
P.O.Box 424
Baytown,TX 77522
WAL-MART
Wal-Mart Real Estate Business Trust
Attention:REM -Texas
2001 S.E.10th Street
Bentonville,Arkansas 72716-0550
Reference:Store No.84860
Withacopyto:
Andrews Kurth LLP
Attention:William Dillard
111 Congress Ave.,Suite 1700
Austin,Texas 78701
4.9Binding Effect ThisAgreementandeach provision hereof,andeachandevery right,duty,
obligation,and liability set forth herein shall be binding uponand inure tothebenefit and
obligation oftheCityand Wal-Mart andtheir respective successorsand assigns.
Cost-ShareAgreement.Page5
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(MO atSH146)
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4.10 Application of Laws.All terms,conditions,and provisions ofthis Agreement are subject to
all applicable federal,state and local laws and regulations,and all judicial determinations
relative thereto.
4.11 Choice of Law and Venue.This Agreement is declared tobeaTexas contract,and all ofthe
terms thereof shall be construed according to the laws ofthe State of Texas.The place of
making and the place of performance for all purposes shall be Baytown,Harris County,
Texas.
4.12 Ambiguities.Intheevent of any ambiguity inany of theterms of this Agreement,it shall
notbe construed for or against any party hereto onthe basis thatsuch party didordidnot
author the same.
4.13 Complete AgreementThis Agreement contains the entire understanding and constitutes the
entire agreement between the parties hereto concerning the subject matter contained herein.
There are no representations,agreements,arrangements,or understandings,oral or written,
expressor implied,betweenoramongthe parties hereto,relating tothesubjectmatter ofthis
Agreement,whicharenotfully expressed herein.
4.14 Duplicate Originals.Itis understood and agreed thatthisAgreementmaybeexecutedina
number ofidentical counterparts each ofwhich shall bedeemedan original forall purposes.
4.15 Headings.The headings and subheadings of the various sectionsand paragraphs of this
Agreement are inserted merely for the purpose of convenience anddonot express orimply
any limitation,definition,or extension of the specific terms of thesectionand paragraph so
designated.
4.16GenderandNumber.The pronouns of anygendershallincludetheothergenders,and
eitherthesingularorthe plural shall include the other.
4.17 Severability.If any section,subsection,paragraph,sentence,clause,phrase orwordinthis
Agreement,or application thereoftoany person or circumstance isheld invalid byany court
of competent jurisdiction,such holding shall notaffectthevalidity ofthe remaining portions
of this Agreement,andthe parties hereby declare theywouldhave enacted such remaining
portions despiteanysuch invalidity.
4.18 AgreementRead.The parties acknowledge thattheyhave read,understand andintendto
beboundbythetermsand conditions of this Agreement.
4.19 Authority.TheofficersexecutingthisAgreementonbehalf of each parry herebyconfirm
that such officers have full authority to execute this Agreement and tobindthe party he/she
represents.
Cost-Share Agreement.Page 6
AUS:672198.4
EXECUTED ONthisthe day of.
Date").
ATTEST:
LETICIA BRYSCH,City Clerk
APPROVED AS TO FORM:
IGNACIO RAMIREZ,SR.,CityAttorney
Texas-Baytown
(I-10atSH146)
Store No.2439-00
_,2013(the "Effective
CITY OF BAYTOWN
By:
ROBERT D.LEIPER,CityManager
EXECUTED ON this the jj^ay of A^i^/^^f/-2013.
WAL-MART REAL ESTATE BUSINESS
TRUST,a Delaware statutory trust
STATE OF /IrfariteS
COUNTY OF
BRIAN
Estate
Vice President of Real
Before me,(^{JlJf^piAp \JfifiZ.„the undersigned notary public,on this day
appeared Brian Hooper,the Vice President of Real Estate,of Wal-MartRealEstat
personally
Estate Business
Trust,on behalf of such trust
(checkone)
£known tome;
provedtomeontheoath of
provedto me throughhis/hercurrent
;or
{description of identification card orotherdocumentissuedbythe federal
government oranystategovernmentthatcontainsthephotographandsignature of
theacknowledging person}
Cost-Share Agreement Page 7
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Texas-Baytown
(MO atSH146)
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tobethe person whose name is subscribed to the foregoing instrument,and acknowledged tome
that he/she executed that instrument for the purposes and consideration therein expressed.
Given under my hand and seal of office this //'day of MmJ#ffl]@Ur .2013.
Notary Public in ai
—SBavmiTOfflr—
NOTARY PUBLIC
BENTON COUNTY,ARKANSAS
COMMISSION#12384731
DATE OF EXPIRATION 11-15-2051
Cost-Share Agreement.Page 8
AUS:672198.4
Notary Public in an<
My commission expires:fl"/o "^C^2J
Exhibit "B"
TEXAS-Baytown
(MO andSH146)
Store No.2439-00
ESCROW AGREEMENT
(Waterline Cost-Share Agreement)
THISESCROWAGREEMENT(this "Escrow Agreement"),datedas of
2013,ismadebyandamong WAL-MART REALESTATEBUSINESS
TRUST,aDelawarestatutorytrust ("WaUMart"),theCITYOF BAYTOWN,TEXAS(the
"Cjty"),and CHARTER TITLE COMPANY ("Escrow Agent"').
RECITALS
WHEREAS,onoraboutthedate hereof,Wal-Mart andtheCityhaveenteredintothat
certain Cost-Share Agreement (the "Cost-Share Agreement")relating to Wal-Mart's conditional
obligation to fund a portion ofthe construction costs relating toa waterline tobe constructed by
theCity,asmore particularly described therein;and
WHEREAS,theCost-Share Agreement provides thatWal-Martwilldeposititsportion of
theestimatedcostof completing the Project in escrow,andtheCityshallbeentitledtoreceive
suchfunds if theProjectis substantially completed by March 15,2014,orsuchotherdateto
which the parties have agreed in writing (the "Date of Substantial Completion"),and if such
completion dateisnotmetand Wal-Mart satisfies certain requirements setforththerein,Wal-
Martshallbeentitledtohavesuch funds returned toituponits termination of the Cost-Share
Agreement;
NOW,THEREFORE,forandin consideration ofthepremisesandothergoodand
valuableconsideration,thereceiptand sufficiency of whichareherebyacknowledged,theparties
heretoagreeasfollows:
TERMS OF ESCROW AGREEMENT
1.DefinedTerms.Anycapitalizedtermusedbutnotdefinedhereinshallhavethe
meaninggiventosuchtermintheCost-Share Agreement.
2.Deposit of EscrowFunds.Within ten (10)daysaftertheexecutionanddelivery
ofthis Agreement byeach party hereto,Wal-Mart shall deliver to Escrow Agent thesumof
Four Hundred Thousand Dollars ($400,000)(the"EscrowDeposit")tobedeposited,invested
and disbursed strictlyin accordance withthe terms ofthis Escrow Agreement.Escrow Agent
herebyagreestoaccepttheEscrowDeposituponandsubjecttothetermsandconditionshereof.
3.Escrow Account.
-I-
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(a)TheEscrow Deposit immediately shall bedepositedintoan interest-bearing,
segregated,non-commingled account (the "Escrow Account")withabank approved byWal-
Mart and theCity(the"Bank").All interest earned onthe Escrow Deposit shall be deposited in
the Escrow Account(the Escrow Deposit,together with all interest earned thereon,are
collectively referredtohereinasthe"EscrowFunds").Unlessanalternative investment shall
have been approved by Wal-Mart,theCity and Escrow Agentin writing,the Escrow Account
shall notbeinvestedotherthaninan interest bearing account withtheBank.
(b)TheEscrow Account shallbeinthename of Escrow Agent,intrustforWal-Mart
andtheCity,astheirinterestsmay appear.Thetax I.D.numberontheEscrowAccountshallbe
theCity'stax I.D.number,sothatall interest or dividend incomeis attributed totheCity.
(c)TheEscrowAccountshallbe under thesolecontrol of Escrow Agent (subjectto
the terms of this Escrow Agreement),and designated signers of Escrow Agent shall havethesole
and exclusive authoritytodrawchecksormake withdrawals ontheEscrow Account
(d)The monthly bankstatementontheEscrow Account shallbesenttoEscrow
Agent,and Escrow Agent promptly shall forward acopy of thebankstatementtoWal-Martand
theCity.
(e)EscrowAgentshallhaveno responsibility orliabilityforthesecurity of anyfunds
inthe Escrow Accountor for calculating,reporting,or paying any interest ordividendsonthe
Escrow Account.Wal-Mart andtheCity shall looksolelytotheBankforsuchsecurityand
services.Moreover,Escrow Agent shall have no responsibility or liability forthe amount of
interest or dividends paid bytheBankonthe Escrow Account For example,Escrow Agentmay
make disbursements from the Escrow Accountwithout regard tohowthetiming of such
disbursements mayaffecttheamount of interest ordividendspaidbytheBankontheEscrow
Account.EscrowAgentshallhaveno responsibility or liability for,orwithrespectto,anyloss
ordamageresultingfromany failure,refusal or inability of theBanktodisburse,orallowfor
withdrawalof,thefunds of theEscrowAccountuponproperauthorizationordirection of
EscrowAgent.Wal-MartandtheCityhereby release Escrow Agent fromtheforegoingtypes of
responsibilityandliability,exceptthatEscrowAgentshallberesponsibleforany investment
lossescausedbyEscrow Agent's failure tofollowtheterms of thisEscrowAgreement.
4.Disbursement of Escrow Funds totheCity.TheEscrowFundsshallbedisbursed
by Escrow AgenttotheCityin accordance withand subject to clauses (a)and(b)of thisSection
4.
(a)The Escrow Funds shall be disbursed totheCitywithinthirty(30)daysafterEscrow
AgentreceiveswrittennoticefromtheCity asserting that substantial completion of theProject
occurred onorbeforetheDate of Substantial Completion,whichnoticeshallbe concurrently
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sent to Wal-Mart and accompanied bya Certificate of Completion signed by an engineer.The
Certificate of Completion must certify that (i)the Project has been completed in accordance with
the plans and specifications approved by Wal-Mart and the City,(ii)the Project is operational
and is ready for use for its intended purpose,and (iii)the substantial completion of the Project
occurred onor before the Date of Substantial Completion (specifying such date).
(b)Notwithstanding the foregoing,inthe event that each of conditions described in(i)
and (ii)below are met Escrow Agent shall not disburse the Escrow Funds totheCityattheend
of suchthirty(30)day period,but shall continue toholdsuchfundsinescrowunlessanduntil
authorized to release thembyjoint instructions signed byboth Wal-Mart andtheCity:
(i)not later thanfifteen (IS)days after receiving thenoticeand Certificate of
Completiondescribedinclause(a)above,Wal-MartnotifiesEscrow Agent andtheCity
thatWal-Martelectstoverifythe substantial completion of the Project;and
(ii)prior tothe expiration of thethirty(30)day period described inclause(a)above,
EscrowAgent receives written notice from Wal-Mart asserting that substantial
completion of the Project didnotoccuronorbeforetheDate of Substantial Completion,
whichnoticeshallbe concurrently senttotheCityandbe accompanied byanengineer's
certificate stating that substantial completion did not occur onor prior tothe Date of
SubstantialCompletion.
5.Disbursement of Escrow FundstoWal-Mart.If the Escrow Funds have not been
previously disbursed to the City pursuant to Section 4 above,the Escrow Funds shall be
disbursed by Escrow Agent to Wal-Mart in accordance with and subject to clauses (a)and (b)of
this Section 5.
(a)The Escrow Funds shall be disbursed to Wal-Mart within thirty (30)days after
Escrow Agent receives written notice from Wal-Mart asserting that substantial completion of the
Project didnot occur onor before the Date of Substantial Completion and terminating the Cost-
Share Agreement whichnotice shall be concurrently senttotheCity.
(b)Notwithstanding the foregoing,intheevent that the conditions described in clause (i)
below are met the Escrow Agent shall not disburse the Escrow Funds to Wal-Mart attheend of
such thirty (30)day period,but shall continue to hold such funds in escrow unless and until
authorized to release thembyjoint instructions signed bybothWal-MartandtheCity:
(i)prior tothe expiration of the thirty (30)day period described inSection 5(a)
above,Escrow Agent receiveswrittennoticefromtheCityassertingthatsubstantial
completion of theProjectdidoccuronorbeforetheDate of Substantial Completion,
whichnoticeshallbeconcurrentlysenttoWal-MartandbeaccompaniedbyaCertificate
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of Completion satisfying the requirements described in clauses (i)through (iii)of Section
4(a).
(c)Wal-Mart and the City,by written agreement signed by each party,can extend the
Date of Substantial Completion referred to in Sections 4 and 5toa later date that is mutually
acceptable toeachparty.
6.Certain Termination Events.
Intheeventall of theEscrow Funds are disbursed assetforthinSections4or5hereof,
this Escrow Agreement shall terminate,and none of the parties hereto shall haveany further
rightsorobligationshereunder.
7.ExculpationProvisionsforEscrowAgent.
(a)Itis agreed that(i)EscrowAgent shall innocaseoreventbeliableforanydirector
indirect damage causedbythe exercise of Escrow Agent's discretion inany particular manner,or
for anyother reason,except gross negligence orawillful breach with reference toitsduties
hereunder;(ii)EscrowAgent shall notbe liable or responsible forthesufficiencyor correctness
asto form,manner of execution,or validity of any instrument tenderedtoEscrowAgent
hereunder,norastoidentity,authority,or rights of any person executingthe same;and
(iii)Escrow Agent shall notbe liable or responsible for Escrow Agent's failure to ascertain the
terms or conditions,ortocomplywithany of the provisions of anyagreement contract orother
document other than its instructions contained herein as amended from time to time in
accordance withtheterms hereof.Escrow Agent shall notbe responsible for determining
whether Wal-Mart ortheCityis obligated or entitled togiveany instructions to Escrow Agent
hereunder.
(b)Wal-Mart hereby covenants and agrees to indemnify and hold Escrow Agent
harmless from and against any and all losses,costs,damages or expenses (including reasonable
attorneys'fees)it may sustain by reason ofits service as escrow agent hereunder,except if such
loss,costs,damages or expenses (including attorneys'fees)are incurred by reason of a willful
breach of Escrow Agent's obligations hereunder or gross negligence onits part.
(c)Intheevent of any disagreement between the parties tothis Escrow Agreement
resulting in adverse claims or demands being made in connection with the Escrow Funds,orin
theevent that Escrow Agent in good faith,shall bein doubt as to what action it should take
hereunder,Escrow Agentmay,atits option,refuse tocomplywithany requests,claimsor
demands relating tothis Escrow Agreementso long assuch disagreements continueorsuch
doubt exists,and inanysuch event Escrow Agent shall beentitledto continue to refrain from
actinguntil(i)therightstotheEscrow Funds shallhavebeenfullyandfinallyadjudicatedbya
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court of competent jurisdiction or (ii)all differences shall have been adjusted and all doubt
resolved by written agreement among all of the persons making requests,claims or demands
with respect to the Escrow Funds,and Escrow Agent shall have been notified thereof in writing
signed by all such persons.In connection with any such disagreement as aforesaid,Escrow
Agent shall have the right to institute a bill of interpleader,and any costs so incurred by Escrow
Agent may be payable out of the Escrow Funds.The rights of Escrow Agent under this
paragraph are cumulative of all other rights that it may have bylawor otherwise and shall
survive the termination ofthis Escrow Agreement.
8.Replacement of Escrow Agent
(a)At any time during the term ofthis Escrow Agreement,Escrow Agentmay resign and
be discharged of the obligations created by this Escrow Agreement by executing and delivering
to Wal-Mart and theCityat least fifteen (15)days'advance written notice of its resignation as
Escrow Agent and specifying the date when such resignation istotakeeffect.Any resignation
of Escrow Agent shall not become effective until acceptance of appointment bythe successor
Escrow Agent.
(b)EscrowAgentmayberemovedatanytimebyawrittennoticeexecutedbyWal-Mart
andtheCitytoEscrowAgent,whereupon a successor Escrow Agentshallbe appointed pursuant
to subparagraph (d)below.
(c)If Escrow Agent shallotherwiseberemoved,orbedissolved,or if itspropertyor
affairsshallbetakenunderthecontrol of anystateor federal courtoradministrativebodyor
agencybecause of insolvency orbankruptcyor for anyotherreason,avacancyshallforthwith
existintheoffice of Escrow Agent anda successor shall beappointedpursuantto subparagraph
(d)below.
(d)Inthe event of theremovalor resignation of theEscrow Agent pursuantto
subparagraphs (a),(b)or(c)above,Wal-Mart and theCity shall endeavoringood faith to agree
upona successor EscrowAgenttobe appointed bywritten instrument,onecopy of which
instrumentshallbedeliveredtothe predecessor Escrow Agent,thesuccessorEscrowAgent,
Wal-Mart andtheCity.If Wal-Mart andtheCity are unable to agree uponasuccessorEscrow
Agentwithinthirty(30)daysafterthe removal or resignation of theEscrow Agent Wal-Mart
shall appoint asuccessorEscrow Agent the identity of whomshallbesubjecttothe approval of
theCity,such approval nottobe unreasonably withheld,conditioned or delayed;provided,
however,any successor Escrow Agent soappointedby Wal-Mart and approved by the City
pursuant to subparagraphs (a),(b)or(c)aboveshallbeadequately bonded,qualifiedand
reputable,asreasonablydeterminedby Wal-Mart,andshallbeatitleinsurancecompany
licensedin Texas and with an office inHouston,Texasoranational bank with an office in
Houston,Texas.
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(e)Upon the acceptance of appointment by the successor Escrow Agent,the predecessor
Escrow Agent shall be compensated from the Escrow Funds for any remaining reasonable out-
of-pocket expenses for which it has not been previously reimbursed,but shall not thereafter be
entitled to any further reimbursement or compensation for its former duties as Escrow Agent
hereunder.
(f)Any successor Escrow Agent appointed hereunder shall execute,acknowledge and
deliver to Wal-Mart and the City an instrument accepting such appointment hereunder,and
thereupon such successor Escrow Agent without any further act shall become duly vested with
all of the property,rights,powers,trusts,duties and obligations of its predecessor hereunder,
withthesameeffectas iforiginally named Escrow Agent
9.Miscellaneous.
(a)Wal-Martshallbe responsible for anyandall charges,feesandexpenses of Escrow
Agent incurred inconnectionwiththis Escrow Agreement,andEscrowAgentis authorized to
withhold from thefunds otherwise payable to Wal-Mart,as applicable,theamount of such
charges,feesand expenses.
(b)The address of Wal-Mart,theCity and Escrow Agent for purposes of notice
hereundershallbeasfollowsuntilchangedbywrittennotice:
Wal-Mart:Wal-Mart Real Estate Business Trust
2001 S.E.10th Street
Bentonville,Arkansas 72716-0550
Attention:REM -Texas
Reference:Store No.84860
Phone:(479)204-1167
Fax:(479)277-5991
theCitv:TheCity of Baytown,Texas
2401 Market Street
Baytown,TX 77520
Attention:CityManager
Phone:281-420-6500
Fax:281-420-6586
Escrow Agent:CharterTitle Company
4265SanFelipe
Houston,Texas 77027
Attention:SariLagrone
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Phone:713-871-9700
Fax:713-871-8208
Any such notices shall be either (a)sent by overnight delivery usinga nationally recognized
overnight courier,inwhich case notice shall be deemed delivered one business day after deposit
withsuch courier,or(b)sentby personal delivery,inwhichcasenoticeshallbedeemed
deliveredupon receipt.A party's address may be changed by written notice tothe other party;
provided,however,that no notice of a change of address shall beeffective until actual receipt of
such notice.
(c)ThisEscrowAgreement shall be governed bythelaws of theState of Texas,and
venuefor all purposes shallbein Harris County.
(d)The provisions of this Escrow Agreement maybeamendedonlybyawritten
agreement signedbyoronbehalf of Wal-Mart,theCityandEscrowAgent.
(e)This Escrow Agreement maybe executed bythe parties hereto inoneormore
separate counterparts,each of whichshallbedeemedanoriginalbutall of whichtogethershall
constitutebutoneagreement.
(f)ThisEscrowAgreementandthe Cost-Share Agreementevidencetheentire agreement
betweenthe undersigned relating tothe manner of holding theEscrowFundsand supersede all
prior agreements,understandings,negotiations and discussions,oral orwritten,of the parties
relatingtosuch subject matter.
(g)Theterms of thisEscrowAgreementshallbebindinguponandshallinuretothe
benefit of Escrow Agent,Wal-MartandtheCityandtheirrespectivesuccessorsandassigns,
including anydebtorin possession or bankruptcy trustee acting forany of said parties.
(h)Eachpersonsigningbelow represents thatheorsheisfullyauthorizedpursuantto
applicablecorporateormunicipallawtoexecutethisEscrow Agreement andtobind die partyon
behalf of whomsuch person is signing.The failure of such representation tobetrueforany
particular partyshallnotaffectthe enforceability of thisEscrowAgreementortherightsand
obligations of theotherparties hereunder.
(i)NothinginthisEscrowAgreementshallbeconstruedtomaketheCitytheagent of
Wal-Martforanypurposes,orWal-Marttheagent oftheCityforanypurposes,orWal-Martand
theCitypartners,or joint orco-venturers.
(j)Timeis of the essence ofthis Escrow Agreement and alltime periods hereunder.
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(k)Uponfinaldisbursement of theEscrow Funds inaccordancewiththeterms hereof
this Escrow Agreement shall terminate and no parties hereunder shall have any further rights or
obligations hereunder,provided,however,the termination of this Escrow Agreement shall not
terminate the rights and obligations of Wal-Mart and the City under the Cost-Share Agreement.
[Signature PageFollows]
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IN WITNESS WHEREOF,Wal-Mart,theCityandEscrow Agent haveexecutedthis
Escrow Agreement tobe effective as of thedatefirstsetforthabove.
Wal-Mart:
WAL-MART STORES REAL ESTATE
BUSINESS TRUST,aDelaware statutory trust
By:
Brian Hoope
Vice President of Real Estate
The Citv:
THE CITY OF BAYTOWN,TEXAS
By:
Name:
Tide:
Escrow Aeent:
CHARTER TITLE COMPANY
By:
Name:
Title:
SignaturePageto Escrow Agreement
AUS:672194J