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HomeMy WebLinkAboutPR 14684: EDC/LOCKWOOD HOLDINGS - SALE OF LAND AT BUSINESS PARKinteroffice MEMORANDUM To: Mayor, City Council, and City Manager -__ From: Mark Sokolow, City Attorney /`Z't-/S ~`~ Date: April 18, 2008 _ Subject: P. R. No. 14684;. Council Meeting April 22, 2008 Attached is P. R. No. 14684 approving the sale of approximately 5.0 acres of land in the City of Port Arthur Section 4A Economic Development Corporation to Lockwood Holdings, Inc. MTS:ts Attachment cc: Floyd Batiste CEO of EDC Guy Goodson Attorney for EDC z.pr19684 memo P. R. No. 14684 04/18/08 mts/gg RESOLUTION NO. A RESOLUTION APPROVING THE SALE OF APPROXIMATELY 5.0 ACRES OF LAND IN THE CITY OF PORT ARTHUR SECTION 4A ECONOMIC DEVELOPMENT CORPORATION BUSINESS PARK TO LOCKWOOD HOLDINGS, INC. WHEREAS, the City of Port Arthur Section 4A Economic Development Corporation deems it is the public interest to sell approximately 5.0 acres of land in the City of Port Arthur Section 4A Economic Development Corporation Business Park to Lockwood Holdings, Inc.; and WHEREAS, Lockwood Holdings, Inc. plans to construct a building with an office and warehouse for an affiliated entity to be the end user; and WHEREAS, the City of Port Arthur Section 4A Economic Development Corporation Board of Directors at a regular Boazd meeting on January 23, 2008, the Board approved the sale of 5.0 acres of land in -the City of Port Arthur Section 4A Economic Development Corporation's Business Park (the "Spur 93 Business Pazk") to Lockwood Holdings, Inc.; and WHEREAS, the total purchase price is $42,500.00 per acre to be paid in full at closing. WHEREAS, the proposed purchase agreement is attached hereto as Exhibit "A" with the legal description to be attached as Exhibit "A" and [he proposed Special Warranty Deed to be attached as Exhibit "B" NOW THEREFORE, BE TT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR, TEXAS: z. pi19689 edc Section 1. That the facts and opinions in the preamble are true and correct. Section 2. That the City Council of the City of Port Arthur approves the sale of approximately 5.0 acres at the Spur 93 Business Park to Lockwood Holdings, Inc. for $42,500.00 per acre with Lockwood Holdings, Inc. to pay the costs of the survey, the title report and the other closing costs and with title to be conveyed by a Special Warranty Deed in a form to be approved by the EDC Attorney which will also be attached as Exhibit "B" to the purchase agreement. Section 3. That the President and Secretary of the EDC is herein authorized 'to execute the purchase agreement in substantially the same form as attached hereto as Exhibit "A" Section 4 That a copy of the caption of this Resolution be spread upon the Minutes of the City Council. READ, ADOPTED AND APPROVED on this day of A.D., 2008, at a Meeting of the City Council of the City of Port Arthur, Texas, by the following vote: AYES: Councilmembers NOES: DECOKES "BOBBIE" PRINCE, MAYOR p617875 Page 2 ATTEST: TERRI HANKS, ACTING CITY SECRETARY APPROVED: FLOYD BATISTE, EDC CEO APPROVED AS TO FORM: MARK T. SOKOLOW, CITY ATTORNEY p617875 Page3 FRIX1 :PAmC .FAX N0. :962 4445 Rpr. 07 2008 03:49PM P2 PURCHASE AGREEMENT THIS PURCIIAS); AGI2ELM);NT ("Agreement") is entered into, aad is effective as of the date the Fscrow TTolder dates this Agreement as provided herein (the "Efl'eetive Date', by and between the. City of Port Arthur Section 4A Economic Development Corporation ("Seller") and Lockwood I3oldinga, Inc., a Texas corporation or its permitted assignee ("Buyer"). RECITALS: A. Seller is the owner of certain real property together with all improvements located thereon, which is located at or near the City of Pnrt Arthur Section 4A 1~:conatnie Development ' Corporarion Business Park. B, Seller desires to sell to Buyer aad Buyer desires to buy approximately 5.0 acres, surface only without minerals (as described in "ItECl'1'ALS A" above and as more particularly described on Exhibit "A" attached. hereto) (the "Property") from Sailer upon the terms and subject to the conditions contained herein and incarpnrated by reference herein as iP tLlly set 1'orlh. NOW, THF.,RF,FORF„ in consideration of the promises contained herein, and for oilier good sud valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows: ARTICLE 1 PTTT2CHASE PRICE 1.I Price and Payment. '17te Purchase Price far the Property, togother with all improvements located thereon, shall be Forty-Two Thousand Five Hundted and no/I00 Dollars ($42,500) per acre: The exact acreage on the Survey obtained by Buyer shall lsc multiplied by $42,500 Lo obtain the purchase price. The Purchase Yrice, less all other amounts to be credited towards the Purchase Price, shall be payable to Seller in cash, by certified or bank cashier's check, or by wire transfer, in full upon closing of the Escrow. , 1.2 Deposit. Within Five (5) days of the lffective llato, Buyer shall deposit with Beaumont Title Company-Joo Deshotel, 275 N. 18"' Street, BeAUntont, Texas 77707, (409) 212- 1400 ("the Escrow Holder") a cash deposit, which shall be deposited into an interest-bearing account, in the amount of Five 'T'housand and 00/I00 Dollars ($5,000.00) ("the Deposit"}. The Deposit, including interest, shall be applied as a credit against the Purchase Price at the closing of the Escrow. 1.3 Refund of Deposit. The Deposit, together with any interest accrued thereon, shall bo fully refundable to T3uyer if Seller breaches or defaults in the performance of any of its obligations under this Agreement, ox if Buyer elects to terminate this Agreement pursuant to any of the contingencies or conditions set forth herein. FROM :FRmC FRX N0, :9G2 4445 Rpr. 07 2008 03:49PM P3 1.4 Glnsin¢ Transaction. Consununation of ~e sale provided herein shall take place on the Closing Date (as herein defioed) through the Escrow Holder at its offices in Beaumont, Jefferson County, Texas or at such other place Seller and!Buyer mutually agree in writing. At or prior to the Closing Date (as herein dcGncd), a~tch of the parties shall execute and deliver such documents m,d perform such acts as arc provided L'or iti this Agreement or as are necessary to wnsummate the transaction contemplated hereunder. ;All obligations of either party to he performed at or prior to the Closing Date are conditions pYecedent as well as covenants, 1.5 Escrow Instructions. Seller and Ruyer'.shall deliver to the Fcrow Holder an executed copy of this Agreement which shall constitute instructions to Escrow Holder. if required by 1_~scrow Haider, Buyer and Se!!er shall execute the printed forn, ercrnw ins[ructiotts as may be used by Fscrow Holder including any mutually acceptable modifications thereto (the "Fscrrow Tnslructions") Ca which may be att<3ehed to ati executed copy of this Agreement and which together shall constitute Instructions to the Escrow holder. If any of the previsions of this Agreement conflict with the );scrow Instructsons, this Agreement shall govern and control. No Escrow Instruction shall excuse uny performance by either Ruyer or Seller at the times provided. in this Agreement, extend the Closing Datc provided for in this Agreement or provide either Buyer or Seller with any mace period not provided in this Agreement, and any F.scmw Instruction to the contrary shall be deleted or considercd~ofno force and effect. A72T1CLE 2 . l<'12ECY.OS;n+1(G MAT'~'E1tS 2.1 Dcliverv of Due DilitTencc Materials. Can or before l~iftcen (IS) days following the Effective Dale, Seller shall deliver to Buyer the li~l~owing documents (the "Due Diligence Materials"); ': 2,],1. A preliminary title report or c;nmdnitment ("Title Cnmmitmenf~ far title insurance for the Property issued by Escrow Nolder, inge~lher with full and complete copies o!' all documents identified as exccptians t}tcrein. 2.1.2. 'fo the extent such materials are in reasonable control, plans and specifications; AL'1'A geological investigations and reports; all environments] )/asement Agreemettt(s); Covenants, Condidotts, & Ices (including, but not limited to, service and maintenwce a; and muit,tenance of the Properties for which Buyer will l or liability after the Closing Date. tellers possession or subject to Seller's iurvey(s); all sttucturtl, seismic and investigations and reports; I2ee:iprocal •ictions (CC&R's); and all agreements reements) relating to the operation, use s required Co assume any responsibility 2.2 Snrvev, On or before Sixty (6t1) days from the EtI'ective Date, Buyer shall cause to be delivered to both the )escrow Holder and the Seller a current a,td updated Boundary Survey of the Property, with EzhibiY "A" being conformed heteto, at Buyer's sole cost and expense, which survey shall be prepared by a regstered land surdeyot and shall bo eertifled to Salter and Buyer, and which shall include a metes and boutul5 legal description of the Property, a Calculation of the land area of the Property to the ne$r~t one-ti,ousandth (.Q(11) of an zure aeisnsa ego a FROM :PREDC FRH N0. :962 4445 Apr. 07 2008 03:50PM P4 (together with the number of squazc feet of area c:ontaincd therein), and the area, dimensions and locations of all recorded easements affecting or benefiting the Property. 23 TiNo Commitment. Buyer shall have Thirty (30} days after receipt of both the 'T'itle Commitment and Survey within which to object in writinb to any exceptions etated in the Tile Commitment or to approve the Title Commitment, In the event that Buyer shall so object to any exceptions, Seller shall have Twenty (2U) days within which to resolve of eliminate such ' exceptions ar to notify Ruyer ig writing of its inability or unwillingness to remove such cxceplions. in the event Seiler shall so notify Buyer within said period, Buyer, by written nolicc to Seller, may do one of the fotlowiztg: (i) terminate this Ageement and be released from all duties and obligations hereunder; or (ii) waive such exceptions and proceed wish the transaction contemplated herein. Any exceptions listed in the 'title Commitment to which Buyer shall not object within such 30 day period (or which Buyer shall !rave appmved or waived affirmatively) shall be deemed io be "Permitted Exceptions " 2.4 Ri¢ltt of Entry and Indemnification, Buyer and its agents shall have the right to enter upon the Property upon reasonable notice to Scllcr for the purpose ot'rrrtking such surveys, examinations, soil and engineering tests and ol]ter tests and dcterminalions as Buyer shall elect (collectively "Tests"). Buyer shall indemnify, def.'end and hold Seller Harmless from (i) any and all liabilities, claims, damages and expenses (including attorneys' fees, court costs, and costs of investigation) arising out of or in connection with the Testq or the entry unto the Property by Buyer or its agents and (ii) any machanics' liens on the Property arising from the Tests. In addition, Buyer shall immediately repair any physical damage to the Property arising out of the Tests. - Z.5 Feasibility Period. In addition in the matters covered in Section 2 about and Section 3 below, buyer shall have the right to terminate this agreement for any reason within Ninety (90) days from the Effective Date. At its cola option, Buyer shall have the right to extend the Feasibility period for two (2) additional periodv of Thirty (30} days each, provided nolicc of such e]ectian is given prior to the expiration of the FcasibiIi[y Period. For the right to extend the Feasibility Ycriod for Thirty (30) additional days the Buyer shall deposit the sum of Five Thousand and 00/100 Dollars ($5,000.00) as Addiflonal Earnest Money with the Escrow Iioldcr for each extension exercised. The Additional Eamcst Money deposit shall ha !roared in the same fashion as the Initial F,fuTtest Money deposit. If the Property ~.oning classification is not proper in order to build and oporate an o.lllce/warehousc (hereinafter referred to as "the Facility"), then Seller shalt be responsible for changing the exisfing caning classification to a new classification which will allow for the construction and operation of the Facility. If necessary, the Feasibility Period shall be extended in order to allow the limo necessary to obtain any necessary zoning change. Buyer agrees to coopcralc with Seller and to provide such informaflon, take such. action(s) and execute such documents as may be necessary to affect any roquisita caning change. 2.6 PROPERTY CONDITION. NOTWI'CHSTANDING ANY OTIIEIt PROVISIONS OF 'PHIS AGREEMENT 1'O TIIE CONTRARY, BUI'ER ACKNOWLEDGES AND ACTRF.RS '1'1-1AT SELLER MAKP.S NO 1tEP12LSL'N'i'ATiONS UR WARRANTIES, NM11 SU] i~o3 FROM ~:PREDC FRX N0. :962 4445 Rpr. 07 2008 03:50PM PS EXPRESS OTZ IMYLILD, 1NCLTJDING, WT'.l'HUUT LIMITATION, ANY WARRANTIES Or HABTTAT~TI.ITY, AND SUl'J'AB[LiTX AND PT'fNESS FOR INTENDED PURPOSE, W1T'H RESPECT TO ANY ASPL~C'i' OF THF, PROPERTY. BUYER IS PURCHASTNCT THE YRUYERTY STRTCTT.Y TN "AS IS" "WHF,RF, AS" CONDITION, AND 13UYLR ACCF,PTS AND AGRhRS TO BEAR ALL RISKS REGARDING ALL A'I-I'RIRtJTES AND L'ONDITIONS, LATENT QA OTHERWISE OF '1'11L PROPERTY. Rl1 Yf_.R HAS MADE OR WILL MAKE PRIOR TO 'l'.klL; CLOSING TTS OWN INSPECTION ANll INVESTIGATION OF THE PROPERTY, INCLUDING, WITHOUT LTMi'1'A'1'ION TTS STJRSIIRFACE, SOIL, EN(i1NEERINCr. AND OTTER C".UNDTTIONS AND RF,QTJTRF,MENTS, WHETHER 'f7.LN.KE ARR ANY EMINENT DOMAIN OR OTHER PUBLIC OR QUASI-PUBLIC TAKINGS OP TTIF, PROPERTY CONTF,MPLATLD, AND ALL ZONING AND REGi7LATORY MATTERS PERTTNF.NT '1'O THE PROPETZ't'Y AND TO THh; PRESENT IJSF, O.R. OCCUPANCY OTC 'I1-ili PROPERTY. BUYF,R IS ENTERING IN'1'U THIS AGREEMENT AND PURCHASING TJLG PROPERTY BASED UPON TTS OWN 1N5FFCTTQN AND LNVESTTCrA'I'ION AND NOT iN REI,L4NCB UN ANY STA'1'LMLNT, RRPR}iSLNTATION, INDUCEMENT OR AGREEMENT OF SELLER EXCEPT AS SPECIFICAi,T.Y PROVIDED I~REIN. BUYER ACREI/S THAT NETfIIER S);LI,FR. NOR ANYONE ACTING ON BEHALF Ulu SELLER IIAS MADE ANY REPRFSh;N'I'A'fIUN, GTJARAN'1'LE OR WARRANTY WHATSOFVI;IZ, EITHER WKl'I`i'LN OR ORAL,. CONCRRNING 7HE PROPERTY F,XCEPT AS SPF.,CTFTCAi.1,Y Sh"1' PURTH HF,RTiJN. ANy ENGINEERING DATA, SOILS REPORTfi, U1Z OTHER INFORMATION 'THAT SELLT~R OR ANY OTHER PARTY MAX HAVE DELNF,RF,D TO BUYEK IS FT.TTZNISIIED WITHOUT ANY REPRESEN'1'AT[()N OR WARRANTY WHATSOBVF,R. SELLER SITALL HAVE NO 12E;SYUNSJBILTTY, LIABILITY OR ORT,TCrATION' SUBSEQiJF.N'1' TU THE CLOSING WITH RESPECT TO ANY CONDITIONS, INCT,UDINC, WITHOUT' LIMTI'ATION, ENVTR.ONMENTAL CONDITIONS, OR AS '1'U ANY OTIILR MATTF.i2S WHATSOF,VI:i2. RESPECTJNC'r IN ANY WAY ')'llii PROPERTY, AND BUYF.).Z HEREBY RRLLASES SF,I,i,ER, 1'1'S OFFICERS, DiRF.C;TORS, EMI'I,QYEES ANl) AGENTS WITH RESi'F..CT TO SUCH CONDI'1'lUN3. 2.7 Covenants and RestrieHons. Tiuyer has read the Covenants and Restrictions for the Port Arthur Economic Development Corporation Business Park, recorded in the Public Records of Jefferson County, Texas. Further, Buyer has reviewed all requirements of the City of Pori Arthur, Texas fnt construction standards for improvements on the Pmperty including but not linvted to requirements of the City of Port Arthur, Texas for compliance with the Americans with Disability Act and improvements rotated thereto. 2.8 De osit Non..Refunda Ie. Upon satisfaction of alI of the conditions described elsewhere in Article 2 and below in Article 3.5 of This Agreement, Buyer's Deposit shall become non-refundable (except in the event of a SeIler dcfauit) and applicable to the Purchase Price. ARTICLE 3 CLOSING CONDITIONS -FlSµx Page 1 FROM :PAEDC FAX NO. :962 4445 Apr. 07 2008 03:SSPM P6 The obligation of Ruyer W purchase the Property is subject to the satisfaction or waiver by Buyer of the conditions set forth below, which conditions are for the sole bene.lit of Ruyer and which may be waived, in whole nr in part, by Buyer: 3.1 Tifle. On or hel'ore the Closing Date, Fscrow IIoldersluill be ready, willing and able to issue to Buyer ar Buyer`s assignee its AI,TA or CT.TA form policy of title insurance (or its nearest equivalent in the jurisdiction where the Property is located) insuring Buyer in the sum of the Purchase Price that fee simple title of the surface only to the Property is vested in Buyer, together with such endorseraeuts as .Ruyer may reasonably require and subject only to (i) liens for then-current real properly lazes, bonds and assessments not delinquent, (ii) the Permitted Exceptions, (iii) any other mortars to which Ruyer shall agree in writing. 3.2 AESienment. At the Closing, Seller shall assign all of Seller's right, title and interest in and to any leases attd to any personal property of Seller located at the Property (if any) and used in the operation and maintcnancc tltcrcof, and any other agreements entered into between Seller and third parties as may be approved by Buyer pursuant to Article 2 above, and shall deliver the originals thereof lo,Ruyer, 3.3 Seller's Warranties. Qn dte Closing Dale, Seller shall nn[ he in material breach of any of Seller's Warranties and }tcprescntations set forth in Article 6 helnw. 3.4 Governmental Approvals, Buyer shall proceed to closinb only after obtaining all necessary gcvernrnental approvals, including but oat limited to the proper zoning for the Facility, legal lot status (final plat), any required conditional' or special use permits, and all required building permits far the Facility. Seller ogees, upon Buyer's request, to cooperate with Buyer in connection with Buyer`s eii'orts to secure such approvals, provided any such requested cooperation is rea9onahle under the circumstances. 3.5 Subdivision. If the Property is not currently legally subdivided in a manner sufficient to pernili the Facility, Boyar shall cooperate with Seller in aU respects in obtaining Final Yla1 or Replat approval for the Property and in recording the Final Plat or Replat. All costs of the platting process will be paid by the Seller. Buyer shall have the right to review and approvo ti1e Final Ylat or Replat, which approval shall not be unreasonably wrthhetd, conditioned or delayed and shall be deemed given if Buyer does not object in writing within ten (1(1) days following any request for approval. ARTICLE 4 CLOSING 4.1 Escrow. The pturchase and sale transaction contemplated by this Ageement shall be consummated through the Escrow established by the Escrow Holder. 4.2 Closlne Date. Closing of the escrow (the "Closing Date") shall take place on a mudaally convcnicnt data and time not less Than three (3) ba4iness days nor more than fifteen (i5} business days following the satisfaction and/or waiver by Ruyer. of all conditions described in Articles 2 and 3 of this Agreement. kG15/42 ply 5 FROM :PREDC FRYC NO. :962 4445 Rpr. 07 2008 03:SiPM P7 , 4.3 Escrow Instructions, The parties agree that this Agreement shall serve as Fscmw Instructions to iiscrow FToldcr for the transactions.contcmplated hereunder, and by delivery of this Agreement to Escrow Itolder, herehy instruct Eserow:Holdcr to open and complete Escrow and Closing in accordance with the terms hereof Buyer and Seller shall deposit with Escrow Holder in a timely fashion all funds, documents, supplemental instructions and instruments necessary to consummate the transactions contemplated by this Agreement prior to the Closing Date, Buyer and Seller shall execute and deliver such addiHott<al Escrow Instructions to Escrow 1-[older as lcrow Holder may reasonably require, provided that such instructions are consistent with this Agreement. d.4 Prorations. Assessments, real property taxes and rents (il' any) shall be prorated bciween Buyer and Seller as of the Closing Date. 4.5 Closine Costs and Chareca, Buyer shall pay for Standard Owner's Policy of Title insurance, any County or City transfer taxes and half of Escrow Fees. Buyer shall pay for any extended'fitle Policy Endorsements and half ofEscraw Fees. Any and all other charges shall he paid as customary iri ,Tefferson County, Texas. . ARTICI,T 5 TRANSFER OF TITLE AND POSSESSION 5.1 eed., Seller shall convey to Buyer or to Btrycx's assignee at the Closing, by Special Warranty Dccd, fee simple title to fhe Property, free and clear of any and all recorded and unrecorded liens,. Claims, obligations, encumbrances, easements, leases, covenants, restrictions and other matters affecting the Property and/or title thereto except only the Permitted hxceptions, current real property taxes, bonds and a.9seasments not yet due and payable, and any other matters to which Buyer shall agree in writing. The form of the Special Warranty Deed to be executed by Seiler to Buyer is attached hereto as Eahihit "B". 5.2 Possession. Seller shall deliver possession of the Property w Buyer on the Closing Date. ARTICLE 6 l2EPRESENTriT10NS ANT) COVENAN'T'S OF SELLER Seller represents to the best of its knowledge and agrees as follows, which representations, warranties and agreements shall survive the close of escrow and delivery of the Deed to Buyer: 6.1 Authority. No further authorisation, whether corporate, parmetship, individual or otberwise is necessary or required as a condition precedent to Seller entcring into this Af~eement or perforn~dng its obligations hcrctmdcr, except for the consent of the City of Port Arthur, which is required. xawas r.ca a FROM :PREDC - FRX N0. :962 4445 Rpr. 07 2008 03:SSPM P8 d.z Code. Scher has no latowledge of and has nni rer;eived any notice of any code violation. To the best of Scllcr's knowledge, the Properly, uicludiug all impravements located thereon (if any), complies with ell applicable building, health, tire, safety and simllar laws, ordinances, regulations and codes. 6.3 Accuracy of bocumenta. '1'o the best of Seller's knowledge, Seller representti that all of the documents, information and records provided to Buyer by Seller in connection with the transaction contcmplatcd herein arc true in all material respects. 6.4 Public Itnprovementsq Condemnation. Other than matters recorded in the public record and listed in the Title Commitment, Seller knows of no intended ar contemplated public improvements or condemnation or of any condition of the land that will frusiratC of interfere with Buyer's intended use of the Property. 'To the best of Seller's knowledge the Property satisfies a!l federal, state, and lacal statutes, or'dinancee and relnrlations, 6.5 Litigation. '1'o the best of Seller's knowledge, there are no claims, administrative actions or lawsuits, pending or threatened, against Seller relating in any manner to the Property, ar on account of the surface or subsurface physical characteris(ies of the Property. To the besC of Seller's knowledge, that's are no violations, thrcatcncd or pending, of any local, state or federal law ar regulation affecting the Yrapetty and there are no pending or contemplated assessments, eminent domain, condemnation or other governmental takings of the Property or any part thereof. 6:6 Hazardous Materials: Unsafe Conditions. Except as otherwise disclosed to Buyer by Scllcr, Scllcr has received no notice from any local, state or natianal governmental entity or agency or other saurec of any hazardous waste condition existing or potentially existing with respect to the Property. To the best of Scllcr's knowledge, there has been no use, discharge, release, generation, storage or disposal of in, on, or under the Property of any hazardous waste, taxis substances or related materials ("Hazardous Materials") except in accordance .with applicable law. 1'or the putgoses of this representation and warranty, Hazarcious Materials shall include but shall not be limited to, any substance, material, or waste which is or becomes regulated by any local governmental authority, the State in which the Property is located, or flee United States llepartment of Transportation Ha~,ardous Materials Table (49 CFR 172.101) rL9 amended liom time to lime. Further Seller agrees that it will not discharge, release, use, generate, store or dispose, or permit or sutler the discharge, release, use, generation, a~torage or disposal oi' any Hazardous Materials above, in, on, under or around the Property in violation of any environmental law prior to the Closing. Seller further warrants that to the best of its knowledge, there is no underground storage tattks located on the Property. 6.7 Condition. From the date al'Buyer's inspections through Close of Escrow, Scllcr will maintain the Pmperry in the same condition, reasonable wear and tear excepted. 6.8 New Agreements, Fram and after the date hereof, Seller shalt oat renow, oxtend ar enter into any new lease or service or management contract, or other agreement that affects the use of the Proporty without rho prior written consent of Buyer, which consent shall not be unreasonably withheld, conditioned or dclayc.d. 4613411 Pagc7 FROM ':PREDC FAX N0. :9b2 4445 Rpr. 07 2008 f33:52PM P9 6.9 No Leases. There are no leases, licensee, concessions, or other oral or written agreements affecting the Property that grant to auy person or entity the right of occupancy or use thereof, except as may be disclosed in the Title Commitment or otherwise included in the Due Diligence Materials. 6.10' Forelen Person. Seller is not a forei~i person or entity under the Foreign hroestment in Real Property Tax Act of 1980, as :unended, and no taxes or wittilielding under the Foreiym Tnves(menl in Real Propexly Tux AcL of 1980, as amended, shall be assessed or applied to Buyer in connection with the transaction contemplated hereby. 6.11 Closing Warranties. All warranties and representations wntained in this Agreement, except as otherwise disclosed in writing, shall be deemed to have been repeated by Seller as of the Closing, and shall be true and accurate as of the Closing. ARTICLE 7 T);RMINATION AND DAMAGES 7.1 Termination. Except ac expressly prohibited in this Agreement,. in the event of any default in this Agreement by either oP the parties hereto, the other party, in addition to any right or remedy available hereunder, at taw or in equity, shall have the right to terminate this Agreement by written notice to the defaulting party and Escrow Agent, if any stceh termination is the result of default hereunder by Seller, then the Eamest Money and interest accrued thereon shall be returned to Buyer. IPBuyer def¢uIIts hereunder, actual damages to Seller will be difficult to calculate but Buyer and Seller agree that the amount of the Earnest Money deli grated. above is a reasonable approximation thereof. Accordingly, if Buyer defaults, Seller shall be entitled w terminate this Agreement and immediately upon such termination by Seller, Psczow Agent shall pay to Scllcr, as Seller's sole remedy, the Eamcst Money, together with interest thereon, and any other monies paid on behalf of Seller. Nothing wntained in this Secticm shall prevent Seller from enforcing Buyer's obligations and liabilities which survive atermination ofthis Agreement. 7.2 No SQecific Performance. [f either Iluyer or Seller breaches this Agrwmcnt prior to the Closing azid, as a result, the Closing does not occur, each party waives the right to spec;ilic performance. Each party agrees that this clause shall constitute an absolute defense to any action filed by one of the parties hereto against lire ether for specific performance. "This clause, iF asserted by one of the parties hereto against an action for specific pcrfonnanec, shall enable said party to cause the action for a specific performance to he set aside at any time rune ~m font;. 73 Condemnafron and Casualty. If before the Closing, either party receives notice of any condemnation or eminent domain proceeding, any proceeding in lieu of condemnation being initiated against the Property, or the damage or destruction of all or a part of any improvements located at the Property, the party receiving the notice-shall promptly notify the other parry in writing of that fact. Buyer may elect to either proceed with the sale ofthe-Property or to terminate this Agreement within'fhirty (30} days from the date Thal the notice is received, If Buyer elects to proceed with the acquisition of the Property, then Buyer may, solely ut iLv awn N6111A2 r.s~ s FROM : PgE31C FAX N0. : %2 4445 Rpr. 07 2008 03:52PM P10 discretion, accelerate the Closing to any time prior to the Closing Dato set forth hereinabove. il' Buyer proceeds with the purchase in accordance with the terms of this Agreement, all condemnation and insm~ance proceeds shall be paid to 13uycr. 1f any proceeds have not been collected as of the Closing, then all rights to those proceeds shall be assigned to Buyer at the Closing. 7.~F DAMAGES. SELLER AND BTJYF.'R ACtiRh;li 'i'l1A'1' ll' BUYER BRL'ACHlS PPS OBLIGATIONS IIRRRIJNDER, SELL1?K SHALT, RRTAIN, AS SELLER'S SOLE AND EXCLUSIVE REMEDY, THE AMOUNT'S DEPO$ITtiD WITH ESCROW HOT,DTiR PTJRSUANT TO 7'1TTS AG1t1i1;ML'N1', TOGETHER WITH ANY ACC:KUL•'U 1N'1'1?RES'1' T'ETEREON AS OF TTY TIME OIL ULP'AtJl:f AS LIQUIDATED DAMAGL~S, lT' EEING AGREED TkiAT UNDER ALL THE CIRCUMSTANCES RXTS`t'1NG AT 'fHE TIME OF THIS AGREF.MT'NT, THIS PROVISION LIQUIDA'I'TNCT DAMACiF,S TN THR EVENT OP '1'HL BUYER'S DEPAUL'I' iS REASONART,F,, TI3E DAMAGES RESULTING TO SET,T,F.R BY .I.l.t;'ASON Uh' SUCkT HKb;ACH AKli NUW AND THEN WOTJT.D BF. DTFFICLTT,T ANT) JMPRACTICAL'1'U DET'ERMTNF. AND THAT TTIE BEST ES'TTMATE, BASED ON AI,L OF TI3E CIRCUMSTANCES EXIS'I'IN<i ON THE DATE OP THIS AGRiJEMENT, OF T'fiiE 'TO'T'AL llAMAGU~S '1'HA"f SELLER WOULD STJFI'F.R IS AND SHALL BE AN AMOUNC F,QT7AT, TO TTIF SiTMS DEPOSITED 13Y BUYER WTTTi F,SCR.OW IIOLDER AS OF'1TiL TTM~ QF~1~ TJT,T..~ CO.AC: MGTHAT 'T'I1F,YTI ~ T2Li.AD, UNDERSTAND AND BT7YER ST?I .LEK 7.5 Waiver. Excuse or waiver of the performance by the other party of any obligation under this Agreement shall only be effective if evidenced by a written statement signed by the party so excusing. 'No delay in exercising any right or retnedy shall constitute a waiver thereof; attd no waiver by Seller or Buyer of Ute breach of any covenant of this Agreement shall he construed as a waiver of any preceding or succeeding breach of the same or any other covenant or condition of'ihis Agreement. AR'i'ICLF. 8 MISCELLANEOUS 8.1 Merecr. F,xcept as otherwise expmssly provided in this Agreement, the representations, warranties and agreements of the parties contained or provided for in this Agreement shall survive the close of escrow and-delivery of the decd to Buyer. 8.2 Notices. Unless otherwise specifically provided herein, all notices, consents, dimctions, approvals, instructions, requests and other communications required ar permitted by the terms hemof to ba given tc any person or entity shall be in writing, and any such notice shall become effective 1'ivc (5) business days after being deposited in the mails, certified or registered, with appropriate postage prepaid for first-class mail or, if delivered personally, by reputable xRisux ~q FRAM :PgEDC FqX N0. :962 4445 qpr. 07 2008 03:53PM Pil overnight courier. service, or by facsimile Transmission or elecuronic mail, when received, and shall he directed to the address of such person or entity set forth below, or at such other address as either party shall hereafter designate in writing and deliver to the other in accordance with the .provision of this paragraph: Buyer at: Michael F. Lockwood Lockwood Holdings, Inc. 10203 WallisviIIe Road Houston, Texas 77031-4115 Telephone: (409) 212-8822 Facsimile: (409) 21Z-8310 Small; Seiler at: Floyd Batiste, CEO Port Arthur Suction 4A Economic Development Corp. 4173 390i Street Port Arthur, T7C 77640 Telephone; (409) 9ti3-0579 Facsimile: (409) 9ti2..444$ E-mail: tbatistel~paedc.or>r Guy N. Goodson, >wpC Attorney termer Gertr., LLP I': O. Boz 4915 Beaumont, Texas 77704 Telephone: (409) ti54-6730 Facsimile: (409) 835-2115 E-mail: ggoodson(ideermer.com Escrow Holder at: BF.,AUMON'1"i'1TLE - DESHOTF,T, Attn: Joseph Deshotcl 275 Nor[h 180i Street Beaumont, Texas 77707 8.3 Authority and Txecution: Irach person executing this Agreement on behalf of a party represents and warrants that such person is duly and validly authorized to do so, has full right and authority to enter into this Agreement and all of its obligations hereunder. 8.4 Seyerability. '111c invalidity or unenforccability of any term or provision of this Agreement or the nonappiication of any such term or provision to any person or circumstance shall not impair nr affect the remainder of this Agreement, and the remaining teens and provisions heroof shall not be invalidated but shall remain in full force and effee;t and shall be construed as if such invalid, unenfprceable, or nonapplicable provision were ouaiited. 85 Waiver or Modification. Nn waiver or modification of this Agreement or of any covenant, condition, or linutatioss hertin curtlained shall he valid unless in writing and duly DEIld6] Pax IO FROM :.PREDC FRX N0. :962 4445 Rpr. 07 2008 03:5~'M P12 executed by tl,e party to be char6ed therewith. Nn evidence of any waiver or moditcation shall be offered nr received in evidence in auy proceeding, arbitration, or litigation between the parries arising out of or affecting this A6n•eement or the rights or obligations of any party hereunder, unless such waiver or modification is in writing and duly executed as aforesaid. The provisions of this Article 8.S may not be waived except as lterein sec 1:orth, 8.6 lieadinQS. The headings or' We various Articles of this Agreement arc for convenience of reference only and shall not modify, define or limit any of the terms or provisions hereof or thereof. 8.7 Parties in Interest. The ten,as of this Agreement shall he binding upon, and inuie to the benefit of, the parties to this Agreement and their successors and assign.9. Royer shall not assign its rights under this Agreement without the prior written Consent of Seller. No assigmmeni shall he to an assignee whose 6usincss purpose has not been approved by print written action of the Board of 17irectors of Seller and, as necessary, the City Council for the City of Port Arthur, Texas. Scllcr shall, upon written request from Buyer, execute u Deed directly in favor of Bnycr's assignee. 8.8 Counterparts. 'I'bis Agreement may be cxcetrtcd by the parties hereto in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute but one and the same instrument. 8.9 Broker Fees. Seller disclaims liability for payment of any brokerage fees as to tl,e transactions specified in this Agreement. A.1Q Goveroine Law. This Agreement shall be governed by aad constnred in accordance with the laws of the State of Texas. 8.11 Time. Time is of the essence of this Agreement. 8.12 Attoroe s` Fees. In the event of any proceeding brought by either party to enforce the toms of or arising out of this Agreement, the prevailing party shall be entitled to recover all costs and expenses incurred in urnnection therewith, including reasonable attorneys' fees. 8.13 Cooperation. Lach party hereto will, upon the reasonable request of the other party, execute, acknowledge, and deliver, or cause to he executed, acknowledged, and delivered, such further instruments and documents as may be reasonably necessary in order tit fulfill the intenta and purposes of this Agreement. 8.14 IBC &1445. Buyer's performance hereunder is conditioned upon Seller providing Buyer at close of escmw witl, all documentation required by hYtcmal Rcvcnuc C:odc .S'eetlOn 1445 to assure Buyer that Scllcr is not a "foreign person" as that term is used in Section 1445, or in the alternative, if Seller is a "foreign person," to assure that all steps have been taken so that Buyer will not be Liable fot payment of any taxes due on the proceeds of the sale. xnlsuz IMyn I I FROM : PAEIx: FRX tJO. :962 4445 Rpr. 07 2008 03:53PM P33 8.15 Exchanec. The parties, or either of them, shall havo the right to secure a bode ar exchange of propeaties of like kind of the parties' respective choices (pursuant to Section 1031 of the internal Kcvenue Code as amended), as long a.4 the obligations imposed on the other parry shall not he greater than the terms and e:onditions of this Agreement, nor shall such obligations delay tfie Closing Date beyond thntallowcd by this Agreement. Nothing in this Article 8.15 shall require either party to take title to any other real property a.4 part of its. obligation to cooperate in any such trade or exchange. 8.16 Entire Anreement. This Agreerncnt constitutes and u>ntains the entire agreement of the parties with respect to the subject matter hereof and thereof, and supersedes any and all Mher prior negotiations, wrrespondence; understandings and agreements respecting the subject matter hereof and thereof. 'T'his Agreement is executed without reliance upon. any representation by any party hereto except as expressly set forth herein. 'this Agreement may not.. he changed orally but only by an agreement in writing signed by the party ab~insl whom. enforcement of any waiver, change, modification, extension or discharge is sought. 7N WITNESS W1iF,RF,OF, the parties hereto have executed this Atreeement and the Effective Date is the dale that the Escrow Holder has received, signed and dated This document set forth below ("the );ffettive Tate"): Sienatures on next nave: aais~oa' ''°~°''- FRDM :'PREDC FAX N0. :962 4445 Rpr. 07 2008 03:54PM P14 SELLER: City of Port Arthnr Section 4A Economic Development Corporation President 13y: _ Secretary BUYER: Date: , 2008 natc::_ , 2008 Lockw o Hol .-~ iiy ._ . _ ~ _ Date:~2- Mi ael F. Lockwood, President ESCRUW HOLDER: Attn: TeIephoae: E-mail: ray.-- Title: zoos _ Datc Received:_ , 2008 the "Effective Date" Escrow Holder shall notify both Seller and Buyer in writing of the "Effective Date" of this Agreement and deliver copies of the folly caecnted Agreement to each. _1 zeiseax Polw lJ 5.000 ACRES OF LAND OUT OF A REPEAT OF BLOCK 1, PORT ARTHUR ECONOMIC DEVELOPMENT CORPORATION BUSINESS PARK, CITY OF PORT ARTHUR, JEFFERSON COUNTY, TEXAS BEING 5.000 acres of land out of and a part of Lot 2, Replat of Block 1, Port Arthur Economic Development Corporation Business Pazk, City of Port ?,rthur, recorded in File No. 2006021509, Official Public Records, Jefferson County, Texas; said 5.000 acre tract being more fully descnbed by metes and bounds as follows; to wit: BEG1i~TNING at a %" steel rod found for a common comer of Lots 2 and 3, Replat of Block 1, said Y" steel rod being the Southeast comer of a (Called 10.00) acre tract of land conveyed to Reliable Polymer Services, L:P., recorded in File No. 2006014675, Official Public Records, Jefferson County, Texas; said ''/z" steel rod being the Southwest corner of the herein described tract; THENCE, North 00 deg., 00 min., 06 sec., East (Called North) on the common line of said Lots 2 and 3, same being the East line of the (Called ] 0.00) acre tract, a distance of 547.68' (Called 547.63') to a 'h" steel rod found on the South right of way line of a dedicated road named South Business Pazk Drive; said 'h" steel rod being the Northeast comer of the (Called 10.00) acre tract and Northwest comer of the herein described tract; THENCE, North 89 deg., 59 min., 53 sec., East, (Called East) on the South right of way line of said South Business Pazk Drive, a distance of 397.67' to a ''/~" steel rod set, capped, and mazked "SOUTEX" for the Northeast comer of the herein described tract; THENCE, South 00 deg., 00 min.; 06 sec., West, crossing said Lot 2, a distance of 547.70' to a h" steel rod set, capped, and marked "SOUTEX" on the South line of said Block 1 from which a 518" steel rod found on the South line of said Block 1 beazs for Ref. Line = East, a distance of 1007.06'; said'/" steel rod being the Southeast corner of the herein descnbed tract, THENCE, West, on the South line of said Block 1, a distance of 397.67' to the POINT OF BEGINNING containing 5.000 acres of land, more or less. This description is based on the Land Title Survey made by Anthony M. Leger,. Registered Professional Land Surveyor No. 5481, on Apri12, 2008. Part Arthur Partners, LLC LS-08-0267 Page 1 of 1 Mark Sokolow p_ R' , ~ ~ g y From: "Guy Goodson" <GGoodson@germer.com> To; <mark@portarthur.net> Cc: "'Floyd Batiste"' <fbatiste@paedc.org> Sent: Friday, April 18, 2008 3:11 PM Attach: img-4181501-0001.pdf Subject: Lockwood Special Warranty Deed Please see attached. Misty G. Muse Legal Asst. to Guy N. Goodson Germer Gertz, L.L.P. 550 Fannin, Suite 400 P.O. Box 4915 Beaumont, Texas 77704 P. (409)654-6730 F. (409)835-2115 4/18/2008 SPECIAL WARRANTY D&ED STATE OF TF.RAS COUNTY OF JEFFERSON The City of Port Arttntr Section 4A Economic Development Corporation, a Texas not-far-profit economic development corporation ("Grantor") in consideration of the sum of TEN AND NO/100 DOLLARS ($10.00) and other good and valuable wnsideration, to Grantor in hand paid by Lockwood Holdings, Inc., a Texas corporation ("Grantee") the receipt of which is hereby acknowledged, has GRANTID, SOLD and CONVEYED, to Grantee, all that certain property situated. in the County of Jefferson, State of Texas, descnibed as follows (the "Property"): This conveyance is made subject to the following: (1) easements. and rights-of--way appeazing of record in the office of the County Clerk of Jefferson County, Texas; (2) the right of Grantor and its designees to use and maintain storm water stub-outs, which extend a few feet from the South Business Pazk Drive right-of--way, and serve to connect the Property drainage system to the drainage system of the Pon Arthur Economic Development Corporation Business Pazk; (3) all covenants, restrictions,. and all conditions and exceptions, reservations and conveyances of minerats and/or royalties, ail and gas and/or mineral leases, affecting the above described property, of record in the Office of the County Clerk of Jefferson County, Texas, to the exte~ they are still in effect and relate to the above described property; (4) the treatment or storage of the following is prohibited: • hazardous industrial waste, as defined by 30 Texas Administrative Code ("TAC") §335.1(60) (in accordance with RCRA of 1976 and 40 Code of Federal Regulations ("CFR") Part 261); • hazardous waste, as defined by 30 TAC §335.1 (62) (in accordance with the federal Solid Waste Disposal Act, as amended by RCRA, 42 United States Code §§6901 et seq., as amended) and as determined by the procedures in 30 TAC §335.504; • hazardous waste comsdtuenr, as defined by 30 TAC §335.1(63) (listed in 40 CFR Pan 261, Subpart D or in Table 1 of 40 CFR §261.24); and • tanks, drums, or containers used for shipping or storing any material that has been listed as a hazardous constituent in 40 code of Federal Regulations (40 CFR), Pazt 261, Appendix VIII but has not been listed as a commercial chemical product in 40 `CFR, §261.33(e) or (f); (~ taxes on the above descrrbed property for 2008 and subsequent years not yet due and payable; and (~ all zoning laws, regulations artd ordinances of mumeipal and other governmental authorities, if any, but only to the extent thaz they are still in effect, relating to the above described property. Grantor has executed and delivered this Special Warranty Deed with Vendor's Lien and has granted, bargained, sold, and wrrveyed the Property to Grantee, and Grantee has received and accepted this Special Warranty Deed and has purchased, received, and, accepted the Property, ON AN AS-IS, WHERE IS BASIS, WITH ALL FAULTS AND WITHOUT ANY REPRESENTATIONS OR WARRANTIES WHATSOEVER, EXPRESS OR IIviPLIED, WRITTEN OR ORAL, TT BEING THE INTENTION OF GRANTOR AND GRANTEE TO EXPRESSLY REVOKE, RII.EASE, NEGATE, AND EXCLUDE ALL REPRESENTATIONS AND WARRANTIES, INCLUDING; BUT NOT LIMTI'ED TO, ANY AND ALL EXPRESS OR IMPLIED REPRESENTATIONS OR WARRANTIES AS TO (i) TIHI CONDITION OF THE PROPERTY OR ANY ASPECT THEREOF, INCLUDING, WITHOUT LIMITATION, ANY AND ALL EXPRESS OR IMPLIED REPRESENTATIONS AND WARRANTIES RELATED TO SUITABILITY FOR HABITATION, MERCHANTABII,TTY> OR FITNESS FOR A PARTICULAR USE. OR PURPOSE; (ii) THE NATURE OR QUALITY OF CONSTRUCTION, STRUCTURAL DESIGN OR ENGINEERING OF ANY IMPROVEMENTS WHICH ARE PART OF THE PROPERTY OR WHICH SERVE THE PROPERTY (the "IMPROVEMII~ITS°); (iii) THE QUALITY OF THE LABOR OR MATERIAL INCI.UDID IN THE IMPROVEMENTS; (iv) THE SOIL CONDTTIONS, DRAINAGE, TOPOGRAPHICAL FEATURES OR OTHER CONDITIONS WHICH AFFECT THE PROPERTY; (v) THE AREA, SIZE,. SHAPE, CONFIGURATION, LOCATION, CAPACITY, USE, DEVEIAPMENf POTENTIAL-, PURPOSE OR OTHER CHARACI'ERIS'I'IC CONCIItNING OR RELATING TO THE PROPERTY; (v) ANY FEATURES OR CONDITIONS P;T OR WHICH AFFECT THE PROPERTY WITH RESPECT TO ANY PARTICULAR PURPOSE, USE, DEVELOPMENTAL POTENTIAL, CASH FLOW, OR OTHERWISE; (vi) ALL EXPRESS OR IMPLIED REPRESENTATIONS OR WARRANTIES CREATED BY ANY AFFIRMATION OF FACT OR PROMISE OR BY ANY DESCRIPTION OF THE PROPERTY; (vri) ANY ENVIItONf41ENTAL, GEOLOGICAL, METEOROLOGICAL, STRUCTURAL OR OTHER CONDITION OR HAZARD OR THE ABSENCE THIItF,oF HERETOFORE, NOW, OR HEREAFTER AFFECTING IN ANY MANNER ANY OP THE PROPERTY; AND (viii) ALL OTHER EXPRESS OR IMPLIED WARRANTIES AND REPRESENTATIONS BY GRANTOR WHATSOEVER, EXCEPT SOLELY THE SPECIAL WARRANTY OF TITLE EXPRESSLY SET FORTH IN THIS DEED CONVEYING THE PROPERTY TO GRANTEE. TO HAVE AND TO HOLD, the said Property, together with all rights, hereditaments and appurtenances thereto belonging, unto Grantee, its successors, heirs, and assigns forever. And Grantor does hereby bind itself, its successors, heirs, executors, administrators, and personal representatives to WARRANT AND FOREVER DEFEND the title to said Property unto Grantee, its successors, heirs, and assigns, against. every person whorttsoever lawfully claiming or w claim the same or any part thereof, by, through, or under Grantor, but not otherwise. When Grantor or Grantee or both of them are more than one (1) person, or when Gtamor or Grantee or both of them aze a corporation, limited liability company, partnership, tntstee, administrazor, exeartor, or personal representative, this Deed shall read as though pertirtent verbs, nouns, and pronouns are changed correspondingly, and pronouns of the masculine gender where used herein shall be constmed to include persons of dre female sex.. When this Deed is executed by or to or by and to a corporation, ]hinted liability ~~ z. Afi7D648 company or partnership, references to "heirs, executors; administrators, and personal representatives" shall be appropriately disregarded, and when this Deed is executed by or to or by and to a natural person or persons, references to "successors" shall be appropriately disregarded. Grantee has joined in this Dced to evidence Grantee's acceptance of this Deed. EXECUTBD this ate _ day of ,zoos , GRANTOR: ` The City of Port Arauu Section 4A Economic Development Corporation By: A President By: Secretary Accepted by GRANTEE: Lockwood Holdings, Inc. By: ' By: p620678 Pege3 STATE OF TEXAS COUNTY OF JEFFERSON This instrument was aclmowledged before me on the _ day of 2008, by ,President of the City of Port Arthur Section 4A Economic Development Corporation, a Texas not-for-profit corporation, on behalf of such corporation. Notary Public, State ofTexas . STATE OF TEXAS COUNTY OF JEFFERSON This.instnrment was ac}mowledged before me on the 'day of 200$, by Secretary of the City of -Port- Arthur Section 4A Economic Development Corporation, a Texas not-for-profit corporation, on behalf of such corporation. Notary Public, State of Texas Paged A61D64g STATE OF TEXAS § , COUNTY OF § This instrument was acknowledged before me on the _ day of , 2~g> by of Lockwood Holdings, Inc., on behalf of such corporation. Notary Public, State of Texas f STATE OF TEXAS § ' § , COUNTY OF § This instrument was acknowledged before me on the _ day of > 2~8, by of Lockwood Holdings, Inc., on behalf of such corporation. Notary Public, State of Texas GRANTEE'S MAILING ADDRESS: , Lockwood Holdings, Inc. 10203 Wallisville Road Houston, Texas 77031-4115 d6Z11646 PagcS •'