LAND SALE CONTRACT (Approximately 341.3 Acres of Property [Jones Spoils], Harris County, Texas)
Exhibit 10.1
(Approximately 341.3 Acres of Property [Xxxxx Spoils], Harris County, Texas)
THE STATE OF TEXAS | § |
| § |
COUNTY OF XXXXXX | § |
THIS LAND SALE CONTRACT (this “Contract”) is made and entered into as of the Effective Date (as defined herein), by and between EAST AND WEST XXXXX PLACEMENT AREAS, LLC, a Texas limited liability company formerly known as CPB Properties, LLC, as Seller (“Seller”), and EQUITY RESOURCE PARTNERS-EAST WEST, LLC, a Georgia limited liability company, as Purchaser (“Purchaser”).
W I T N E S S E T H:
1.Purchase and Sale. Subject to the terms, provisions and conditions hereof, Seller hereby agrees to sell to Purchaser, and Purchaser hereby agrees to purchase from Seller, all but not a part of the following (collectively, the “Property”):
(a)those certain tracts or parcels of land containing, in the aggregate, approximately 341.3 acres in Harris County, Texas, as more particularly described by metes and bounds on Exhibit A-1 hereto, and any and all improvements thereon, if any, that are not Excluded Improvements as defined below (collectively, the “Real Property”);
(b)all right, title and interest of Seller in and to (i) a certain Access Easement Agreement (abandoned First St. and Xxxxxxx Xx.) dated as of November 1, 2012, recorded under County Clerk’s File No. 20120511585 in the Real Property Records of Harris County, Texas (the “Access Easement”), (ii) a certain reservation of drainage rights to access Cotton Patch Bayou in a Deed dated July 6, 1941, from Harris County Houston Ship Channel Navigation District to Xxxxxx & Xxxxxx, recorded at Volume 1163, Page 504 in the Real Property Records of Harris County, Texas, and related map recorded in Volume 20, Page 10 of the Map/Plat Records of Harris County, Texas, and (iii) all other rights and appurtenances (including, without limitation, easements appurtenant) to the Real Property, if any, and all right, title and interest of Seller, if any, in and to all other easements or rights of Seller in any roads, streets, alleys, strips or gores of land immediately adjacent to the Real Property, if any (including, without limitation, any rights in abandoned First St. and Xxxxxxx Xx.) (collectively, the “Related Rights”);
(c)all right, title and interest of Seller, if any, in and to the following (the “Intangibles”):
(i)to the extent transferable, all licenses, permits, certificates of occupancy and franchises issued by any federal, state, county or municipal authority relating to the use, maintenance or operation of the Real Property running to or in favor of Seller and pertaining to the Property or otherwise pertaining to the Property, EXCLUDING, HOWEVER, ALL ENVIRONMENTAL AND OTHER PERMITS IN FAVOR OF SELLER OR ITS AFFILIATES RELATING SOLELY TO OPERATION OF THE PROPERTY AS A DREDGE SPOILS DISPOSAL FACILITY (BUT NOT FURTHER OR OTHERWISE), BUT SPECIFICALLY INCLUDING ANY PERMITS RELATING TO STORMWATER, DRAINAGE, DISCHARGE OR OUTFALL;
(ii)to the extent transferable, all rights, commitments, reservations, allocations, service agreements, operating agreements and maintenance agreements with respect to the provision of utility service to the Land, including, without limitation, potable water supply, sewage treatment capacity, sanitary sewer line capacity, storm sewer and drainage capacity, and gas, electric, and telephone service;
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LAND SALE CONTRACT-341.3 ACRES IN HARRIS COUNTY, TX-XXXXX SPOILS TRACTS (EAST & WEST XXXXX PLACEMENT AREAS LLC & EQUITY RESOURCE PARTNERS-EAST WEST, LLC)
(iii)to the extent transferable, all unrecorded agreements entered into by or to Seller’s Knowledge (as defined below) assigned to Seller that will bind the Property after Closing, if any, all as set forth on Exhibit A-2 hereto (separately, the “Seller Unrecorded Agreements”);
(iv)to the extent transferable, all warranties, guaranties, indemnities and claims (including, without limitation, for workmanship, materials and performance) and which exist or may hereafter exist from or against any contractor, subcontractor, manufacturer or supplier or laborer or other services relating to the Property; and
(v)to the extent transferrable, any escrows or deposits affecting the Property, including without limitation any escrows or deposits held by The Port of Houston Authority of Harris County, Texas (but specifically excluding the Xxxxxxx Money hereunder).
Notwithstanding the foregoing, however, the Property as defined herein specifically excludes the following: all telecommunications facilities, electric facilities, sanitary sewer, storm sewer, water pipelines and chemical products pipelines (including oil, gas and other petrochemical products pipelines) situated within the Real Property that are not owned by Seller (“Excluded Improvements”). Seller has disclosed that the Real Property is subject to a certain Industrial District Agreement dated as of August 6, 2012, a copy of which is recorded under Harris County Clerk’s File No. 20120370601 in the Real Property Records of Harris County, Texas, insofar as it relates to the Real Property (the “Industrial District Agreement”). The provisions of the preceding sentence survive Closing.
2.Purchase Price. The purchase price for the Property (the “Purchase Price”) shall be the sum of THIRTY-FIVE MILLION NINE HUNDRED SEVENTY-EIGHT THOUSAND TWO HUNDRED SEVEN AND NO/100 DOLLARS ($35,978,207.00). The Purchase Price shall be paid in full in cash at the Closing. Seller and Purchaser acknowledge that the Purchase Price is based upon an estimated acreage and a base price per square foot, but notwithstanding the foregoing, Seller does not warrant the acreage of the Real Property and the Purchase Price shall not be adjusted based on final acreage calculation under the Existing Survey or any Updated Survey.
3.Xxxxxxx Money.
(a)Xxxxxxx Money. Within three (3) business days after the Effective Date, Purchaser will deliver to Xxxxxxx Title Company, 00000 Xxxxxxxxx Xxxxxxx, Xxxxx 000, Xxxxx Xxxx, XX 00000, Email: xxxxx.xxxxxx@xxxxxxx.xxx; Phone: 000-000-0000 (Attn: Xxxxx Xxxxxx, Escrow Officer) (“Title Company”), with the Title Company using with Xxxxxxx Title Guaranty Company, as underwriter for issuance of the Title Commitment (as hereinafter defined), the sum of Four Hundred Fifty Thousand and No/100 Dollars ($450,000.00) as xxxxxxx money (the “Xxxxxxx Money”). If Purchaser fails to timely deliver the Xxxxxxx Money, this Contract shall be rendered void. The Xxxxxxx Money will be deposited by the Title Company promptly upon receipt in an interest-bearing money-market account at an FDIC-insured financial institution, with all interest accruing to the tax account of Purchaser (but being considered part of the Xxxxxxx Money) provided that Purchaser delivers the Title Company a completed IRS Form W-9.
(b)Independent Consideration & Net Xxxxxxx Money. Five Thousand and No/100 Dollars ($5,000.00) of the Xxxxxxx Money is considered the “Independent Consideration” for all purposes of this Contract. The term Independent Consideration when used herein also includes the Extension Independent Consideration when and if delivered by Purchaser to Seller under Section 7(b) hereof. Except in the event Purchaser timely elects to terminate this Contract in accordance with Section 8(c) or Section 11(a) hereof, the Independent Consideration shall be non-refundable to Purchaser in all other cases and shall be paid over to Seller in the event of any termination of this Contract for any other reason (but shall apply to the Purchase Price if Closing occurs hereunder). The Xxxxxxx Money excluding the Independent Consideration is herein called the “Net Xxxxxxx Money.”
(c)Disposition. In the event that this Contract is terminated prior to the consummation of the purchase and sale of the Property in accordance with this Contract, then the Xxxxxxx Money shall be delivered as
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LAND SALE CONTRACT-341.3 ACRES IN HARRIS COUNTY, TX-XXXXX SPOILS TRACTS (EAST & WEST XXXXX PLACEMENT AREAS LLC & EQUITY RESOURCE PARTNERS-EAST WEST, LLC)
provided herein or as otherwise directed in written instructions signed by both Xxxxxxxxx and Seller. At the Closing, the Xxxxxxx Money shall be applied toward the Purchase Price.
4.Survey and Title Commitment.
(a)Survey. Within five (5) after the Effective Date of this Contract, Seller shall deliver to Purchaser a copy of its existing survey of the Real Property prepared by Xxxxxxxx Engineers, Inc., dated May 31, 2019, last revised and/or sealed June 18, 2019 (the “Existing Survey”). Within sixty (60) days after the Effective Date, Purchaser shall at its sole cost and expense endeavor to obtain and deliver to Seller and the Title Company a new or updated Category 1A, Condition II (or better at Purchaser’s option, such as ALTA) land title survey of the Real Property with the surveyor’s certificate naming Purchaser (and lenders or other parties Purchaser chooses), the Seller and the Title Company as parties to rely thereon (an “Updated Survey”).
(b)Title Commitment. Within sixty (60) days after the Effective Date of this Contract, Purchaser will endeavor to obtain from the Title Company and deliver to Seller an up-to-date, complete and binding commitment for a TLTA Form T-1 Owner’s Policy of Title Insurance covering the Real Property and beneficial easements appurtenant thereto (including specifically the Access Easement if the same is deemed appurtenant to the Real Property) and naming Purchaser as the proposed insured in the full amount of the Purchase Price (the “Title Commitment”), together with best available copies of the recorded exception documents referenced therein (hereinafter referred to as the “Exception Documents”).
5.Title and Survey Objections.
(a)Objections. Purchaser shall have until seventy (70) days after the Effective Date in which to examine the Updated Survey and title to the Real Property (and all Exception Documents) and to make any written objections to the matters affecting title or disclosed by the Updated Survey. In the event that the Updated Survey or Title Commitment (or any other title information obtained by Purchaser, including Exception Documents) shows any matters that are objectionable to Purchaser (“Objections”) and Purchaser notifies Seller in writing of such objections (an “Objection Notice”) within the time period provided for above in this Section 5(a), Seller may, but shall have no obligation to, undertake efforts to cure such Objections during a period of thirty (30) days after receiving Purchaser’s Objection Notice (“Seller’s Cure Period”), with Seller to give written notice to Purchaser within ten (10) days after receipt of the Objection Notice whether Seller will not attempt to cure one or more of the Objections. Seller shall be absolutely obligated to remove only the following items (“Mandatory Cure Items”) and only in the applicable time period specified: (i) within thirty (30) days after Purchaser’s Objection Notice - any encumbrances of any kind first placed of record against the Real Property by or on account of Seller after the Effective Date, and (ii) on or before Closing - all liens set forth on Schedule C to the Title Commitment (other than any liens or lien claims arising from work performed by or under Purchaser). Failure of Seller to remove or cure Mandatory Cure Items within the applicable time period is a default by Seller. Purchaser expressly acknowledges that Seller has disclosed that it accepted title to the Real Property (from its seller/grantor) subject to certain matters or agreements that are referenced in record Exception Documents but that are not themselves recorded, and there may be other unrecorded agreements referenced as such in the Title Commitment. If the same do not constitute Seller Unrecorded Agreements, Seller shall have no obligation to obtain or provide such unrecorded documents or exception matters that are not of record in order to trigger the time periods for Purchaser’s Objections hereunder or for any other reason except to the extent that Seller is in possession of such unrecorded agreements (in which event, Seller shall provide them to Purchaser as part of the Seller Deliveries, as hereinafter defined) and generally the obligation of the Title Company to produce unrecorded documents to which exception is taken is limited to that provided by applicable Texas title insurance regulations and Seller is not responsible for the Title Company’s compliance or non-compliance with such requirements. Purchaser may make Objection to such unrecorded matters but Seller (as in the case of all Objections save and except Mandatory Objections) shall have no obligation to cure or remove from title to the Real Property any such unrecorded matters, including, but not limited to, the Seller Unrecorded Agreements.
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LAND SALE CONTRACT-341.3 ACRES IN HARRIS COUNTY, TX-XXXXX SPOILS TRACTS (EAST & WEST XXXXX PLACEMENT AREAS LLC & EQUITY RESOURCE PARTNERS-EAST WEST, LLC)
(b)Failure to Object or Terminate. If within the time period provided for in Section 5(a) Purchaser fails to notify Seller of its Objection to any matter disclosed by the Updated Survey or Title Commitment (or that could have been disclosed by an Updated Survey or a Title Commitment had it been obtained timely), then Purchaser shall be deemed to have waived objection to such matter, such matter shall be considered an additional Permitted Exception for purposes of this Contract, and the Property, if purchased, shall be purchased subject to such additional Permitted Exception. Purchaser shall have the right to terminate this Contract within the Feasibility Period if Seller has not cured all Objections. If Purchaser fails to terminate within such time, then Purchaser shall be deemed to have waived the Objections that Seller has failed to cure (in the case of expiration of Seller’s Cure Period without all of the same having been properly cured if Seller has not given early notice that it will not attempt to cure such item(s)) or that Seller has stated that it will not cure (in the case of Seller giving early notice of its intent not to attempt to cure). Notwithstanding the forgoing, the time periods provided for in this Section 5(b) shall in no way affect Purchaser’s right to terminate this Contract for any reason whatsoever or for no reason within the Feasibility Period as otherwise provided in Section 7(c).
(c)Update of Updated Survey and Title & Updated Objections.
(i)If any update of the Updated Survey obtained prior to Closing (a “Further Updated Survey”) discloses any material defects in or objections to the Real Property that (A) were not shown on the Existing Survey (or the immediately prior Updated or Further Updated Survey) or (B) were not disclosed by the Title Commitment or Exception Documents (“New Objectionable Survey Matters”), then Purchaser may object thereto in written notice given to Seller no later than ten (10) days after its receipt of such Further Updated Survey. Purchaser will deliver any Further Updated Survey obtained by Purchaser to Seller promptly upon Purchaser’s receipt thereof. Seller shall have the same time period and rights to attempt to effectuate a cure as provided in Section 5(a) hereof after receipt of any objection to New Objectionable Survey Matters, except that Seller’s time to attempt to cure shall expire no later than the date of Closing, and Purchaser shall have the right to terminate this Contract if all such New Objectionable Survey Matters are not cured by the earlier of Closing or, as to specific items, five (5) business days after Seller provides notice to Purchaser that it will not or cannot cure any New Objectionable Survey Matter and if Purchaser fails to timely elect to terminate hereunder then Purchaser will be deemed to have waived the applicable New Objectionable Survey Matters and they shall be additional Permitted Exceptions hereunder.
(ii)Seller agrees that, regardless of whether Purchaser shall have furnished to Seller any notice of Objections pursuant to the provisions of Section 5(a), Purchaser may, at any time prior to Closing but in no event later than ten (10) days after receipt of an updated Title Commitment issued after the end of the Feasibility Period, further notify Seller in writing of any material defects in title (i.e., that would have a material adverse impact on the development potential of the Real Property in the sole discretion of Purchaser that does not already substantially exist because of other title matters already deemed approved by Purchaser) that are first reflected on such updated Title Commitment and provide copies to Seller of any documentation evidencing the same (“New Objectionable Title Matters”). In the event of any New Objectionable Title Matters objected to by Purchaser, Seller shall cure the same if they constitute Mandatory Cure Items or as to New Objectionable Title Matters that are not Mandatory Cure Items will have until Closing in which to attempt (without obligation) to cure the same. If such New Objectionable Title Matters that are not Mandatory Cure Items, if any, are not cured by Closing (or Seller notifies Purchaser that Seller will not attempt to cure a New Objectionable Title Matter), then Purchaser, as it sole and exclusive remedy therefor, may elect to terminate this Contract by written notice to Seller given no later than Closing or, if sooner, five (5) business days after Seller gives Purchaser notice that it will not cure the same and if Purchaser fails to timely exercise such termination right then the New Objectionable Title Matters that are not Mandatory Cure Items will be deemed waived as objections by Purchaser and shall become additional Permitted Exceptions hereunder. If any litigation arises against Seller or the Property between the end of the Feasibility Period that makes Seller unable to deliver title to the Real Property at Closing in all material respects in the condition required by this Contract, provided such litigation was not caused by Purchaser and was not caused by an action of Seller in violation of some restriction or obligation in this Contract (with such violation to be
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LAND SALE CONTRACT-341.3 ACRES IN HARRIS COUNTY, TX-XXXXX SPOILS TRACTS (EAST & WEST XXXXX PLACEMENT AREAS LLC & EQUITY RESOURCE PARTNERS-EAST WEST, LLC)
governed by the provisions of Section 11(a) hereof or as otherwise provided under this Contract, then the same will constitute a New Objectionable Title Matter hereunder. Purchaser has no right to terminate this Contract as a result of any matter disclosed by a post-Feasibility Period updated Title Commitment except New Objectionable Title Matters that are timely objected to by Purchaser and not waived or deemed waived by Purchaser under this paragraph or as otherwise provided under this Contract.
(d)Permitted Exceptions. For purposes of this Contract, the term “Permitted Exceptions” means and refers to the following:
(i)the standard form pre-printed or promulgated exceptions in the standard Texas T-1 Title Commitment that relate to survey matters (Schedule B, Item 2) or rights asserted by governmental authorities relating to certain tidelands, filled lands, navigable waters and the like (Schedule B, Item 4);
(ii)a general exception for mineral ownership or mineral development rights (including leases) held by third parties other than Seller, if any;
(iii)the restrictions, easements, covenants, conditions, agreements and other encumbrances of record that are shown as exceptions in the Title Commitment (or could have been) or any update of the Title Commitment issued to Purchaser prior to Closing and that are either (A) not timely objected to by Purchaser as provided in this Section, or (B) are timely objected to by Purchaser but are waived or deemed waived by Purchaser pursuant to the terms of this Contract;
(iv)all laws, ordinances, regulations and rules of governmental authorities with jurisdiction over the Real Property;
(v)the lien for taxes or assessments other than those required to be paid by Seller hereunder;
(vi)all underground pipelines and other facilities of any kind of third parties located on the Real Property whether or not pursuant to recorded easements and whether or not depicted on the Survey, if any; and
(vii)any liens, claims or encumbrances created or caused by Purchaser or Purchaser’s Agents.
6.Access & Inspections by Purchaser.
(a)Permitted Access Activities; Seller Deliveries. At any and all times after the Effective Date hereof while this Contract remains in effect, Purchaser and its agents, employees, representatives and contractors (collectively, “Purchaser’s Agents”), shall have the right to investigate and evaluate the Property and enter upon, inspect, investigate, evaluate and make non-destructive, non-invasive tests of the Real Property (all activities of Purchaser and Purchaser’s Agents on the Real Property permitted hereunder are herein collectively called the “Access Activities”), subject to the following:
(i)It is agreed (without limitation) that (A) geotechnical soil tests to determine the feasibility of construction as more particularly set forth on Exhibit I attached hereto and incorporated herein (“Pre-Approved Inspections”) will be permitted and will not be deemed invasive or destructive testing for purposes hereof, and (B) a Phase I Environmental Site Assessment and other environmental sampling or testing, including the drilling of soil borings and installation of groundwater monitoring xxxxx for the collection of samples for laboratory analysis, and other sampling or testing necessary to determine the presence of petroleum products or hazardous substances at the Property, as more particularly described in the Pre-Approved Inspections, will be permitted. Any geotechnical or environmental assessment work outside
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LAND SALE CONTRACT-341.3 ACRES IN HARRIS COUNTY, TX-XXXXX SPOILS TRACTS (EAST & WEST XXXXX PLACEMENT AREAS LLC & EQUITY RESOURCE PARTNERS-EAST WEST, LLC)
of the scope of Exhibit I will require prior written consent of Seller, such consent not to be unreasonably withheld, conditioned or delayed, and any request therefor shall be accompanied by a detailed description and plan of the additional activities that Purchaser desires to perform, which request will be deemed approved to the extent that Seller has not objected to any such request submitted in accordance with the terms hereof within three (3) business days following receipt thereof (under no circumstances shall Seller be required to approve or be deemed to approve such activities in the Avoidance Areas as shown on Exhibit J hereto), with any objection thereto to include a detailed description with any required changes. All Access Activities of Purchaser and/or Purchaser’s Agents shall be at Purchaser’s sole risk and shall be subject to the rights of persons in possession of the Property. Purchaser agrees, by the end of the Feasibility Period, to perform all permitted Access Activities that it requires, in its sole and absolute discretion, in order to make a decision whether to purchase the Property and allow its right of termination (with refund of Net Xxxxxxx Money) to expire under Section 7 hereof. Seller may require that its agent(s) or employee(s) (or selected consultant(s)) accompany Purchaser and Purchaser’s Agents during any entry to the Property for any Access Activities, but in such event, Seller shall reasonably cooperate with Purchaser in scheduling such entry. Purchaser and Xxxxxxxxx’s Agents shall not enter the Property hereunder except upon prior scheduling with Seller stating the specific reason for entry and the Access Activities to be conducted during such visit.
(ii)Seller agrees to reasonably cooperate with Purchaser, at no material cost to Seller, as Purchaser reasonably requests in order to assist Purchaser in performing Access Activities. Further, subject to the limitations and restrictions below, Seller shall provide to Purchaser within ten (10) days after the Effective Date (either by physical delivery of copies or creation of a virtual online server room accessible to Purchaser via email link and passwords provided by Seller) true and correct copies of the following information and data to the extent in Seller’s possession, custody or control (excluding the Excluded Materials as herein defined, but including also any Property information, whether listed below or not, provided by Seller to Purchaser prior to the Effective Date, the “Seller Deliveries”):
(A)a copy of Seller’s most recent survey of the Real Property;
(B)all data and materials arising from Phase I and Phase II, or similar environmental testing, and testing of soil and groundwater, and any geotechnical or geophysical or engineering studies or reports, if any, related to the Real Property;
(C)both of the following (i) all material records regarding Seller’s acceptance of dredge fill/disposal material at the Real Property, which includes data provided to Seller by the United States Army Corps of Engineers, other governmental entities, businesses requesting to place dredge material into and onto the Real Property, or otherwise generated or maintained in the course of Seller’s operations, and (ii) all material records previously received or obtained by Seller, if any, as to any dredge fill/disposal material deposited at or upon the Property by or under any operator or owner of the Property prior to Seller’s ownership thereof;
(D)copies of Property tax bills for the preceding two (2) calendar years, including any information reflecting payments and assessments (if any) made to or by Seller under the Industrial District Agreement, if any;
(E)copies of all utility letters and utilities reports obtained by Seller for the Real Property, if any;
(F)copies of the Seller Unrecorded Agreements;
(G)any unrecorded agreements entered into by any predecessor of Seller that will bind the Real Property after Closing, if any;
(H)Copy of Seller’s most recent title policy (redacted to delete insured value and premium charged); and
(I)names, place and cause number of any pending litigation that currently affects the Property or that would affect the Property after Closing or that would or reasonable could be foreseen to affect Seller’s ability to perform this Contract.
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LAND SALE CONTRACT-341.3 ACRES IN HARRIS COUNTY, TX-XXXXX SPOILS TRACTS (EAST & WEST XXXXX PLACEMENT AREAS LLC & EQUITY RESOURCE PARTNERS-EAST WEST, LLC)
For purposes hereof (other than meeting the above deadline for delivery of listed Seller Deliveries items), any and all other information and data duly provided by Seller to Purchaser during the term of this Contract will also constitute Seller Deliveries hereunder. For purposes hereof, “Excluded Materials” means (A) Seller’s internal email correspondence; (B) projections, estimates and internally developed or proposed plans, analysis or computations prepared by Seller, (C) any material that is protected by attorney-client privilege, (D) any material that is covered by a confidentiality or non-disclosure agreement of Seller that prohibits its disclosure, (E) appraisals and valuations, and (F) matters related to negotiation of the contract for Seller’s purchase of the Property or negotiations for this or any other proposed sale or development of the Property. Except as otherwise expressly provided in this Contract, Seller is not liable for any omissions in Seller Deliveries and Seller does not warrant or represent anything about the Seller Deliveries, including, without limitation, that the Seller Deliveries are complete, accurate or comprehensive. Purchaser is not entitled to and shall not rely upon any Seller Deliveries and agrees that it must verify all information and data that may be covered by any Seller Deliveries by Purchaser’s own independent tests, studies and investigations. Seller agrees upon Purchaser’s written request from time to time during the time that this Contract remains in effect but only during the Feasibility Period (defined below) to provide, at no cost to Seller, reasonable assistance with Purchaser’s efforts to apply for and obtain appropriate reservation letters or commitment letters for necessary water, storm, gas, electricity from utility companies or governmental authorities, provided that (a) no such reservation or commitment letters shall in any way bind Seller (before Closing or after Closing or termination of this Contract) to pay any fees or make any improvements or do anything or incur any expense, and (b) Seller is in no way responsible or liable for the success or failure of Purchaser’s efforts to obtain such utility reservations or commitments and Purchaser’s sole remedy for failure to obtain assurances regarding the same shall be to terminate this Contract during the Feasibility Period should it choose not to take risks of inability to obtain the same.
(iii)Within ten (10) business days after any termination of the Contract by Purchaser, Purchaser agrees to provide Seller with a full and complete copy of each third-party survey, study, test or inspection report prepared for Purchaser relating to the Real Property to the extent not already provided by Purchaser, but shall not provide Seller with results of any environmental review(s) or environmental reports done by or for Purchaser except if Seller specifically requests the same while this Contract remains in effect or within thirty (30) days following any termination of this Contract for any reason. The obligation of Purchaser to provide Seller such information and reports survives expiration or termination of this Contract.
(b)Insurance. Notwithstanding anything else herein, prior to any entry onto the Real Property by Purchaser or any Purchaser Agents for purposes of any inspections or conducting of any Access Activities, Purchaser shall have in effect (if its own employees or representatives are to enter the Real Property), and cause each of Purchaser’s Agents that is a consultant or independent contractor who will enter the Real Property, to have in effect commercial general liability insurance (in combination with umbrella liability coverage in any combination, with follow underlying form coverage) naming Seller as an additional insured under an additional insured endorsement form reasonably acceptable to Seller, with combined aggregate limits for property damage and bodily injury (including death) of not less than $1,000,000.00 per occurrence and $2,000,000.00 annual aggregate of unused limits covering (at least as to the additional insured) from the first dollar of loss and providing coverage on an “occurrence” (not claims-made) basis. Prior to any entries onto the Real Property under this Section 6 by Purchaser or Purchaser’s Agents, as applicable, Purchaser shall provide Seller certificates of insurance evidencing such required coverages, which insurance shall remain in effect during the period that the Access Activities are being conducted on the Real Property.
(c)Purchaser Indemnity and Repairs. Purchaser shall and hereby agrees to indemnify, defend and hold harmless Seller, its agents, employees, lenders and affiliates, from and against any and all, claims, liabilities, actions, suits, proceedings, judgments, damages, losses, injury, costs, fees and expenses, including, without limitation, costs of court and attorney’s fees, to the extent arising in any way out of or in connection with any Access Activities of Purchaser or Purchaser’s Agents upon the Real Property; provided, however, the foregoing indemnity
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LAND SALE CONTRACT-341.3 ACRES IN HARRIS COUNTY, TX-XXXXX SPOILS TRACTS (EAST & WEST XXXXX PLACEMENT AREAS LLC & EQUITY RESOURCE PARTNERS-EAST WEST, LLC)
shall not apply with respect to the mere discovery by Purchaser, or the reporting (only if advised by legal counsel or other consultant that it has the obligation to report) or failure to report, any pre-existing conditions, or to the extent arising from any negligence or willful misconduct of Seller or its agents, employees, lenders and affiliates. Upon conclusion of each Access Activity hereunder, Purchaser shall promptly and diligently restore any portion of the Real Property disturbed by such Access Activity to, in all material respects, the condition that existed immediately prior to the same, including offsite disposal, within seven (7) days of generation by or under Purchaser, of any soil, water or other media or waste materials associated with Access Activities. Notwithstanding anything to the contrary or apparent contrary elsewhere in this Contract, the indemnity, defense, hold harmless and repair obligations of Purchaser under this Section shall survive the expiration or termination of this Contract for any reason.
(d)Xxxxxx’s Phase 2. Seller will use commercially reasonable efforts to cause its lender (“Lender”) to do a Phase 2 environmental site assessment of the Real Property within thirty (30) days after the Effective Date in a manner which is generally consistent with Exhibit I attached hereto (the “Lender’s Phase 2”) and to deliver a copy of the report of Xxxxxx’s Phase 2 to Purchaser promptly thereafter. Notwithstanding anything herein to the contrary, Purchaser shall not perform any of its permitted Phase 2 Environmental Assessment of the Real Property prior to the earlier of the date Purchaser notifies Seller of Purchaser’s receipt of the report of the Lender’s Phase 2 or ten (10) days after the Effective Date. If Purchaser is satisfied with the scope and final report of the Lender’s Phase 2 and requests that Seller do so in order to attempt to avoid the cost of conducting its own phase II investigation of the Property, Seller will use commercially reasonable efforts to obtain a reliance letter from the Lender’s Phase 2 contractor providing in form acceptable to Purchaser that Purchaser may rely on the Lender’s Phase 2 Report as if it had been co-addressed to Lender and Purchaser, but the cost of such reliance letter will be paid for by Purchaser when payment is required by the issuing contractor (if it agrees to the reliance letter in the first instance)..
7.Feasibility Period (Study) Contingency; Optional Extensions of Feasibility Period.
(a)Notwithstanding any provision in this Contract to the contrary, Seller hereby acknowledges and agrees that, for a period commencing on the Effective Date of this Contract and expiring one hundred five (105) days thereafter (if and as extended as provided below, the “Feasibility Period”), Purchaser shall have the right and option to conduct any and all Access Activities that Purchaser, in its sole and absolute discretion, desires pursuant to Section 6 hereof (subject to the limitations of Section 6). Although Purchaser is not obligated to give any specific reasons for exercise of its termination right during the Feasibility Period, Purchaser expressly agrees that it will never give as a written reason for termination of this Contract under this Section 7 that it is dissatisfied with the environmental condition of the Real Property or stating in writing any specific environmental conditions (if any) that it may have discovered, if any.
(b)Purchaser shall have three (3) consecutive options to extend the Feasibility Period for an additional fourteen (14) days each by doing both of the following before the expiration of the initial Feasibility Period described in Section 7(a) hereof in the case of the first such extension option and before expiration of the Feasibility Period as previously extended, in the case of the second and third extension options: (i) Purchaser must give written notice to Seller and the Title Company of its election to exercise the applicable option to extend the Feasibility Period, and (ii) Purchaser must deposit with the Title Company, for immediate disbursement to Seller, the following applicable additional sum in cash (when and as paid, the “Extension Independent Consideration”):
(i)$15,000.00 for the first extension option;
(ii)$30,000.00 for the second extension option (additional to the first extension fee); and
(iii)$60,000.00 for the third extension option (additional to the above 2 extension fees);
which Extension Independent Consideration fees shall serve as additional Independent Consideration to Seller under this Contract. The Title Company shall immediately disburse directly to Seller, upon receipt, each Extension
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LAND SALE CONTRACT-341.3 ACRES IN HARRIS COUNTY, TX-XXXXX SPOILS TRACTS (EAST & WEST XXXXX PLACEMENT AREAS LLC & EQUITY RESOURCE PARTNERS-EAST WEST, LLC)
Independent Consideration received by it hereunder. For avoidance of doubt, the Extension Independent Consideration credits to the Purchase Price if the Closing occurs, but otherwise is non-refundable to Purchaser in all circumstances except in the event Purchaser timely elects to terminate this Contract in accordance with Section 8(c) or Section 11(a) hereof.
(c)If the Access Activities conducted by Purchaser reveal that the Property is not suitable, in Purchaser’s sole and exclusive judgment, for Purchaser’s intended use of the Property, or if Purchaser is dissatisfied with the Property for any reason whatsoever or for no reason, then Purchaser, at Purchaser’s option and discretion, shall have the right to terminate this Contract by giving written notice of such termination to Seller in accordance with Section 17 hereof, on or before the last day of the Feasibility Period. If Purchaser terminates this Contract under this Section 7, then: (i) the Independent Consideration shall be forfeited to Seller as full payment and consideration for the Feasibility Period granted herein; (ii) the Net Xxxxxxx Money deposited by Purchaser with the Title Company shall be immediately refunded to Purchaser free and clear of all rights and claims of Seller with respect thereto; and (iii) neither Purchaser nor Seller shall have any further rights or obligations under this Contract except the Surviving Obligations (hereinafter defined). For purposes hereof, the “Surviving Obligations” mean the obligations of Purchaser under Section 6 hereof and any other obligations of the parties that are expressly stated in this Contract to survive expiration or termination of this Contract.
8.Representations and Warranties; Seller Disclaimers.
(a)DISCLAIMER. EXCEPT FOR THE EXPRESS (LIMITED) REPRESENTATIONS AND/OR WARRANTIES OF SELLER CONTAINED IN SECTION 8(b) HEREOF (SUBJECT TO THE LIMITATIONS AND RESTRICTIONS HEREIN), AND THE APPLICABLE WARRANTY OF TITLE TO BE CONTAINED IN THE DEED OR OTHER CLOSING DOCUMENTS (WHEN AND IF CLOSING OCCURS) (COLLECTIVELY, THE “SELLER EXPRESS WARRANTIES”), PURCHASER ACKNOWLEDGES AND AGREES THAT SELLER HAS NOT MADE, DOES NOT MAKE AND SPECIFICALLY NEGATES AND DISCLAIMS ANY REPRESENTATIONS, WARRANTIES, PROMISES, COVENANTS, AGREEMENTS OR GUARANTIES OF ANY KIND OR CHARACTER WHATSOEVER, WHETHER EXPRESS OR IMPLIED, ORAL OR WRITTEN, PAST, PRESENT, OR FUTURE, OF, AS TO, CONCERNING OR WITH RESPECT TO (A) THE VALUE, NATURE, QUALITY OR CONDITION OF THE PROPERTY, INCLUDING, WITHOUT LIMITATION, THE WATER, SOIL AND GEOLOGY OF THE REAL PROPERTY, (B) THE INCOME TO BE DERIVED FROM THE PROPERTY, (C) THE SUITABILITY OF THE PROPERTY FOR ANY AND ALL ACTIVITIES AND USES WHICH PURCHASER MAY CONDUCT OR DESIRE TO CONDUCT THEREON OR THEREWITH, AND THE SUITABILITY OF THE REAL PROPERTY FOR CONSTRUCTION OF IMPROVEMENTS OR THE AVAILABILITY OF UTILITIES TO THE PROPERTY, (D) THE COMPLIANCE OF OR BY THE PROPERTY OR ITS OPERATION WITH ANY LAWS, RULES, ORDINANCES OR REGULATIONS OF ANY APPLICABLE GOVERNMENTAL AUTHORITY OR BODY, INCLUDING, WITHOUT LIMITATION, BUILDING, FIRE AND SAFETY CODES, (E) THE HABITABILITY, MERCHANTABILITY, MARKETABILITY, PROFITABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF THE PROPERTY, (F) THE MANNER OR QUALITY OF THE CONSTRUCTION OR MATERIALS, IF ANY, INCORPORATED INTO THE PROPERTY, (G) THE QUALITY, STATE OF REPAIR OR LACK OF REPAIR OR CONDITION OF THE PROPERTY, (H) THE QUALITY, ENFORCEABILITY, ASSIGNABILITY, VALUE, DESIRABILITY OF TERMS, AND/OR LEGAL INTERPRETATION OF ANY PART OF THE PROPERTY THAT IS COMPRISED OF CONTRACTS OR INTANGIBLES, AND (H) ANY OTHER MATTER WITH RESPECT TO THE PROPERTY OR THE AREA IN WHICH IT IS LOCATED. EXCEPT FOR THE SELLER EXPRESS WARRANTIES, SELLER HAS NOT MADE, DOES NOT MAKE AND SPECIFICALLY DISCLAIMS ANY REPRESENTATIONS REGARDING WHETHER THE PROPERTY DOES OR DOES NOT CONTAIN ANY HAZARDOUS, TOXIC OR REGULATED MATERIALS, INCLUDING SOLID WASTE, AS DEFINED BY THE U.S. ENVIRONMENTAL PROTECTION AGENCY REGULATIONS AT 40 C.F.R., PART 261, OR REGARDING WHETHER THE PROPERTY COMPLIES WITH ANY ENVIRONMENTAL
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LAND SALE CONTRACT-341.3 ACRES IN HARRIS COUNTY, TX-XXXXX SPOILS TRACTS (EAST & WEST XXXXX PLACEMENT AREAS LLC & EQUITY RESOURCE PARTNERS-EAST WEST, LLC)
PROTECTION, POLLUTION OR LAND USE LAWS, RULES, REGULATIONS, ORDERS OR REQUIREMENTS, OR THE DISPOSAL OR EXISTENCE, IN OR ON THE PROPERTY, OF ANY HAZARDOUS SUBSTANCES, AS DEFINED BELOW. EXCEPT FOR THE SELLER EXPRESS WARRANTIES, PURCHASER FURTHER ACKNOWLEDGES AND AGREES THAT, HAVING BEEN GIVEN THE OPPORTUNITY TO INSPECT, INVESTIGATE AND TEST THE PROPERTY HEREUNDER, PURCHASER IS RELYING SOLELY ON ITS OWN INVESTIGATION OF THE PROPERTY AND HAS NOT RELIED AND WILL NOT RELY ON ANY INFORMATION PROVIDED OR TO BE PROVIDED BY SELLER HEREUNDER OR PROVIDED HEREAFTER (WHETHER OR NOT REQUIRED TO BE PROVIDED UNDER THE TERM OF THIS CONTRACT). PURCHASER FURTHER ACKNOWLEDGES AND AGREES THAT ANY INFORMATION PROVIDED OR TO BE PROVIDED BY SELLER WITH RESPECT TO THE PROPERTY WAS OBTAINED FROM A VARIETY OF SOURCES AND THAT SELLER HAS ADVISED PURCHASER THAT IT HAS NOT MADE ANY INDEPENDENT INVESTIGATION OR VERIFICATION OF SUCH INFORMATION AND MAKES NO REPRESENTATIONS AS TO THE ACCURACY, COMPETENCY OR COMPLETENESS OF SUCH INFORMATION EXCEPT FOR THE SELLER EXPRESS WARRANTIES. SELLER IS NOT LIABLE OR BOUND IN ANY MANNER BY ANY VERBAL OR WRITTEN STATEMENTS, REPRESENTATIONS OR INFORMATION PERTAINING TO THE PROPERTY, OR THE OPERATION THEREOF, FURNISHED BY ANY REAL ESTATE BROKER, AGENT, EMPLOYEE, SERVANT OR OTHER PERSON, UNLESS THE SAME IS A SELLER EXPRESS WARRANTY CONTAINED HEREIN OR IN A DULY EXECUTED WRITTEN AMENDMENT HERETO. OTHER THAN THE SELLER EXPRESS WARRANTIES, THE SALE OF THE PROPERTY IS MADE ON AN “AS IS” CONDITION AND BASIS “WITH ALL FAULTS.” IT IS UNDERSTOOD AND AGREED THAT THE PURCHASE PRICE HAS BEEN ADJUSTED BY PRIOR NEGOTIATION TO REFLECT THAT ALL OF THE PROPERTY IS SOLD BY SELLER AND PURCHASED BY PURCHASER SUBJECT TO THE FOREGOING. THE DISCLAIMERS AND OTHER PROVISIONS OF THIS SECTION 8(a) SURVIVE CLOSING. For purposes hereof, “Hazardous Substances” means any hazardous, toxic or dangerous waste, substance or material, pollutant or contaminant, as defined for purposes of the Comprehensive Environmental Response, Compensation and Liability Act Of 1980 (42 U.S.C. Sections 9601 et seq.), as amended (“CERCLA”), or the Resource Conservation and Recovery Act (42 U.S.C. Sections 6901 et seq.), as amended (“RCRA”), the Federal Water Pollution Control Act, the Federal Environmental Pesticides Act, the Clean Water Act, the Clean Air Act, any federal, state or local so-called “Superfund” or “Superlien” statute, or any other statute, law, ordinance, code, rule, regulation, order or decree regulating, relating to or imposing liability or standards of conduct concerning any Hazardous Substances, or any other federal, state or local law, ordinance, rule or regulation applicable to the Real Property, or any substance which is toxic, explosive, corrosive, flammable, infectious, radioactive, carcinogenic, mutagenic or otherwise hazardous, or any substance which contains gasoline, diesel fuel or other petroleum hydrocarbons, polychlorinated biphenyls (pcbs), radon gas, urea formaldehyde, asbestos, lead or electromagnetic waves (collectively, the “Hazardous Substance Laws”).
(b)Seller’s Limited Representations. As Seller’s sole and exclusive representations to Purchaser regarding the Property and this transaction, Seller hereby represents and warrants to Purchaser that:
(i)Seller is a limited liability company organized and validly existing under the laws of the State of Texas and is in good standing (“active”) per the Office of the Comptroller of the State of Texas.
(ii)Seller has full right, power, and authority to execute and deliver this Contract and to consummate the purchase and sale transaction provided for herein without obtaining any further consents or approvals from, or the taking of any other actions with respect to, any third parties. This Contract, when executed and delivered by Seller and Purchaser, will constitute the valid and binding agreement of Seller, enforceable against Seller in accordance with its terms. The individuals executing this Contract on behalf of Seller have the legal power, right, and actual authority to bind Seller to the terms and conditions hereof. On or before the Closing Date, the individuals acting on behalf of Seller to execute the Closing documents to be
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LAND SALE CONTRACT-341.3 ACRES IN HARRIS COUNTY, TX-XXXXX SPOILS TRACTS (EAST & WEST XXXXX PLACEMENT AREAS LLC & EQUITY RESOURCE PARTNERS-EAST WEST, LLC)
executed by Seller under this Contract will have the legal power, right, and actual authority to bind Seller to the terms and conditions thereof.
(iii)Seller has not granted to any third party, and to Seller’s Knowledge no third party has granted to any third party pursuant to any agreement to which Seller is not a party, any right or option to acquire the Property or any part thereof.
(iv)To Seller’s Knowledge, except as disclosed in Seller Deliveries, there are no actions, suits, claims, assessments, or proceedings pending or threatened against Seller that could materially and adversely affect the ownership, operation, or maintenance of the Property (or that may bind the Property after Closing) or Seller’s ability to perform (or prevent Seller from performing) its obligations hereunder or pending or threatened against the Property, including, without limitation, any condemnation, annexation or eminent domain proceedings or proceedings related to inclusion in any extraterritorial jurisdiction. The following matter has been settled and dismissed: ExxonMobil Oil Corporation v. Orion Group Holdings, Inc., East and West Xxxxx Placement Areas, LLC, and Xxxxxxxx Contracting Co., Inc., Cause No. 2023-06570, in the 270th Judicial District Court of Harris County, Texas.
(v)To Seller’s Knowledge, except as disclosed in Seller Deliveries, Seller has not received any written notice that Seller’s current operation of the Real Property is being conducted in violation of any applicable laws, ordinances, regulations or legal requirements, and there are no material violations of any federal or municipal laws, zoning and other ordinances, orders, regulations and requirements affecting the Real Property or any portion thereof (including any violations of or with respect to the Real Property and the conduct of business operations thereon) which are unresolved.
(vi)Intentionally omitted.
(vii)The Industrial District Agreement has not been amended by Seller or any affiliate of Seller since its initial execution and, to Seller’s Knowledge, the Industrial District Agreement is in full force and effect, is in the form recorded in the Real Property Records of Harris County, Texas, and has not otherwise been amended.
(viii)To Seller’s Knowledge, except as disclosed in Seller’s Deliveries, Seller is not in default of its obligations, if any, under the Industrial District Agreement (except that, since its ownership of the Real Property, Seller has not been receiving any assessments/PILOT invoices and has not paid any).
(ix)Seller is not party to or bound by any contracts, agreements or commitments that will or may bind the Real Property or Purchaser after Closing other than the Permitted Exceptions, the Industrial District Agreement and any matters or agreements (including the Seller Unrecorded Agreements) delivered to Purchaser as Seller Deliveries hereunder.
(x)To Seller’s Knowledge, there are no unrecorded agreements that may bind the Real Property or Purchaser after Closing other than the Seller Unrecorded Agreements and other than in connection with matters shown and disclosed on the Existing Survey.
(xi)Seller is a “United States person” within the meaning of Sections 1445(f)(3) and 7701(a)(30) of the Internal Revenue Code of 1986, as amended.
(xii)To Seller’s Knowledge (a) Seller has not received written notice of nor is the Real Property subject to any actual or threatened special assessment, (b) all private Seller-owned improvements in, on and with respect to the Real Property have been fully paid for, and (c) Seller has received no written notice of nor are there any assessments against the Real Property for public improvements.
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LAND SALE CONTRACT-341.3 ACRES IN HARRIS COUNTY, TX-XXXXX SPOILS TRACTS (EAST & WEST XXXXX PLACEMENT AREAS LLC & EQUITY RESOURCE PARTNERS-EAST WEST, LLC)
(xiii)To Seller’s Knowledge, Seller is not a party to, subject to or bound by any agreement or other document or any judgment, order, law or decree, which would prevent or be violated by any of the items set forth below; and no approval, order, authorization or consent of any governmental authority or any other person or entity, which has not been obtained, is required for or will arise out of any of the items set forth below:
(A)the execution, delivery and performance of this Contract and any other agreements, obligations and instruments referred to in or contemplated by this Contract; or
(B)the deeding, conveyancing, assignment or other transfer to Purchaser of the Property in accordance with this Contract.
(xiv)To Seller’s Knowledge, except as disclosed in this Contract or Seller Deliveries (it being further expressly stipulated that for purposes hereof any judgment or determination made by any third party in the Seller Deliveries as to whether any noted substance or Hazardous Material is Hazardous Material or is “actionable”, or “minor vs. major” or in violation, or not, of Hazardous Substances Laws is fully relied upon by Seller (and the Seller Knowledge Parties) and such Seller Knowledge Parties are not required to make an independent determination of such matters beyond the conclusions made by the third party in such Seller Deliveries):
(A)the Real Property is not in violation of any Hazardous Substance Laws;
(B)no underground storage tanks are located on the Real Property;
(C)no material substances which contain gasoline, diesel fuel, oil, or any other petroleum hydrocarbons have been disposed of on the Property.
(D)other than local background levels or minor, non-actionable contaminations, there is no material contamination of the soil, surface water and ground water of, under, on or around the Property by any Hazardous Substances; and
(E)no investigation, administrative order, administrative order by consent, consent order, agreement, litigation or settlement is proposed or in existence or threatened or under consideration, with respect to or arising from the presence of any Hazardous Substances or in connection with any Hazardous Substance Laws with respect to the Property.
(xv)No bankruptcy, insolvency, reorganization or similar action or proceeding, whether voluntary or involuntary, is pending, or, to Seller’s Knowledge, threatened, against Seller.
(xvi)Neither Seller nor any person, group, entity or nation that Seller is acting, directly or indirectly for, or on behalf of, is named by any Executive Order (including the September 24, 2001, Executive Order Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism) or the United States Treasury Department as a terrorist, “Specially Designated National and Blocked Person,” or is otherwise a banned or blocked person, group, entity, or nation pursuant to any law that is enforced or administered by the Office of Foreign Assets Control, and Seller is not engaging in the transactions contemplated by this Contract, directly or indirectly, on behalf of, or instigating or facilitating the transactions contemplated by this Contract, directly or indirectly, on behalf of, any such person, group, entity or nation. Seller is not engaging in the transactions contemplated by this Contract, directly or indirectly, in violation of any laws relating to drug trafficking, money laundering or predicate crimes to money laundering. None of the funds of Seller have been or will be derived from any unlawful activity with the result that the investment of direct or indirect equity owners in Seller is prohibited
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LAND SALE CONTRACT-341.3 ACRES IN HARRIS COUNTY, TX-XXXXX SPOILS TRACTS (EAST & WEST XXXXX PLACEMENT AREAS LLC & EQUITY RESOURCE PARTNERS-EAST WEST, LLC)
by law or that the transactions contemplated by this Contract or this Contract is or will be in violation of applicable law.
(xvii)To Seller’s Knowledge, notwithstanding anything contained in Section 6(a) to the contrary (i) the Seller Deliveries do not contain any materially inaccurate or misleading information except to the extent disclosed to Purchaser in writing and (ii) the Seller Deliveries include all material environmental documentation related to the Real Property in Seller’s possession, custody or control, it being further expressly stipulated that, for purposes hereof, without limitation of the otherwise provided definition of Seller’s Knowledge, the Seller Knowledge Parties (defined below) are not required to make an independent judgment or determination as to any conclusions made by any third party professional or expert in such Seller Deliveries.
For purposes hereof, “Seller’s Knowledge” shall mean and include only the actual personal (conscious) knowledge of Xxxx X. Xxxxx, Senior Vice President, Equipment & Maintenance of Seller, or Xxxxx Xxxxxxx, Executive VP, General Counsel, Chief Administrative and Compliance Officer and Corporate Secretary of Seller (each a “Seller Knowledge Party”), to the extent the same is within in the actual personal knowledge of the Seller Knowledge Party named above, without duty of inquiry or investigation except to the extent stated below, and expressly excluding implied, imputed or constructive knowledge of Seller or such Seller Knowledge Party, with Seller representing that the Seller Knowledge Party has been a primary caretaker for the Real Property or general counsel within Seller’s company, provided, however, that Seller’s Knowledge specifically includes the following diligence done by the Seller Knowledge Parties prior to the Effective Date hereof: Seller has provided to the Inquiry Parties (defined below) the list of Seller Deliveries from Section 6(a)(i) hereof and the representations and warranties made to “Seller’s Knowledge” under this Section 8(b), as well as access to the data server on which all Seller Deliveries have been heretofore posted by Seller as contemplated under Section 6(a) hereof, and such Inquiry Parties responded to the Seller Knowledge Parties (or either of them) that they did not have any actual knowledge (without further inquiry) of any material inaccuracy of the representations or warranties made to Seller’s Knowledge under this Section 8(b). For purposes hereof, the “Inquiry Parties” are the following employees of Seller, which the Seller Knowledge Parties in good faith determined were the parties in the Seller’s Company most likely to have information relevant to the Seller’s Knowledge representations herein: (i) Xxxxx Xxxxx, Vice President, Dredging Operations; (ii) Xxxx Xxxxxxxxx, Director of Marine Maintenance; (iii) Xxxx Xxxxxxxxxx, Senior Project Manager, Dredging Operations, (iv) Xxxxxx Xxxxxxx, Construction Xxxxxxx, Dredging Operations; and (v) Xxxxxx Xxxxxxxxx, Director, Legal and Compliance Departments. The reference herein to the knowledge of the Seller Knowledge Parties as defining Seller’s Knowledge for purposes hereof shall not render either such individual Seller Knowledge Party (or any Inquiry Parties) personally liable under this Contract in any respect and Purchaser hereby expressly releases and waives any right of personal claims against the Seller Knowledge Party (and/or Inquiry Parties) arising from the representations and warranties of Seller contained herein or any other aspect of performance or non-performance of this Contract.
(c)Remedies for Seller Breach. If any of Seller’s representations and warranties set forth in this Section 7 is untrue in any material respect prior to Closing, then Purchaser shall have the right, as its sole and exclusive remedy, to terminate this Contract by delivering notice to Seller no later than the date required for Closing hereunder, whereupon the full Xxxxxxx Money (inclusive of all Independent Consideration) shall be returned to Purchaser and Seller shall promptly pay to Purchaser the amount of Purchaser’s Pursuit Costs, as hereinafter defined, that are demanded and reasonably documented by Purchaser. Purchaser agrees to use commercially reasonable efforts to provide Seller prompt and reasonably specific written notice within ten (10) days after Purchaser obtains Purchaser’s Knowledge (as hereinafter defined) that any of Seller’s representations and warranties set forth in this Section 7 are untrue in any material respect prior to Closing, but any failure to give such notice shall in no way be deemed a waiver of such breach and Purchaser’s rights as otherwise provided in this subsection (c). If Purchaser consummates the Closing with Purchaser’s Knowledge of a breach of representation or warranty by Seller, then Purchaser shall be deemed to have waived any objection, right or remedy against Seller for such breach. All of Seller’s express representations and warranties herein (as re-given by Seller at Closing as modified to accommodate changes in Seller’s Knowledge between the Effective Date and Closing), unless deemed waived by Purchaser, shall survive the Closing for a period of one (1) year (the “Survival Period”). If Purchaser does not notify Seller of the
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LAND SALE CONTRACT-341.3 ACRES IN HARRIS COUNTY, TX-XXXXX SPOILS TRACTS (EAST & WEST XXXXX PLACEMENT AREAS LLC & EQUITY RESOURCE PARTNERS-EAST WEST, LLC)
breach of any of its representations or warranties set forth in this Contract prior to the expiration of the Survival Period and within six (6) months thereafter institute a lawsuit against Seller therefor in a court of competent jurisdiction, then Purchaser shall be deemed to have waived all of its rights to claim and sue for any breach by Seller of any of its representations and warranties made in this Contract (as such claims may be limited or restricted by any other provision of this Contract, including, without limitation, Section 11(d) hereof). If any provision of applicable law does not permit the parties to agree by contract to the period of the Survival Period for Purchaser to give Seller notice of claims and/or to bring suit on claims for breaches of representations and warranties of Seller herein, then (i) the parties agree that the time for Purchaser to give Seller written notice of such claims with reasonable specificity, and the time period for Purchaser to file suit on such claims, shall each be such longer period as is the shortest period that the parties may agree to by contract for such notice or filing of suit by Purchaser, and (ii) Seller’s total liability to Purchaser for any breach of representation or warranty that is brought by Purchaser against Seller during such extended Survival Period (after one year from Closing) shall be absolutely limited to a dollar sum of $1,000.00 as an agreed absolute cap on Seller’s liability therefor during such extended Survival Period (with such limit in no way affecting Seller’s liability to Purchaser for any breach of representation or warranty that is brought by Purchaser against Seller during such initial 1-year Survival Period). The provisions of this paragraph survive Closing under this Contract or termination of this Contract for any reason. As used herein, “Pursuit Costs” shall mean the following amounts not to exceed, in the aggregate, One Hundred and Fifty Thousand and no/100 Dollars ($150,000.00), provided that if, in compliance with Section 6, Purchaser performs a Phase 2 Environmental Site Assessment of the Real Property, such maximum aggregate amount shall be increased to Five Hundred Thousand and no/100 Dollars ($500,000.00): the actual, out-of-pocket fees, costs and expenses incurred by Purchaser and paid to third parties in connection with this Contract, conducting due diligence with respect to the Property, and in pursuing and obtaining financing for its acquisition of the Property, including, without limitation, attorney’s fees and costs, the costs and fees of environmental consultants, tax advisors, engineers, and other consultants, and any non-refundable lender deposits, loan commitment fees or interest rate-lock fees, to the extent the same are demanded and reasonably documented by Xxxxxxxxx in written notice with supporting materials delivered to Seller no later than thirty (30) days after Purchaser’s election to terminate hereunder.
(d)Purchaser’s Limited Representations. As Purchaser’s sole and exclusive representations to Seller regarding this transaction, Purchaser hereby represents and warrants to Seller that:
(i)Purchaser is a limited liability company organized and validly existing under the laws of the State of Texas and is in good standing (“active”) per the Office of the Comptroller of the State of Texas.
(ii)Purchaser has full right, power, and authority to execute and deliver this Contract and to consummate the purchase and sale transaction provided for herein without obtaining any further consents or approvals from, or the taking of any other actions with respect to, any third parties. This Contract, when executed and delivered by Seller and Purchaser, will constitute the valid and binding agreement of Purchaser, enforceable against Purchaser in accordance with its terms. The individuals executing this Contract on behalf of Purchaser have the legal power, right, and actual authority to bind Purchaser to the terms and conditions hereof. On or before the Closing Date, the individuals acting on behalf of Purchaser to execute the Closing documents to be executed by Purchaser under this Contract will have the legal power, right, and actual authority to bind Purchaser to the terms and conditions thereof.
(iii)To Purchaser’s Knowledge, there are no actions, suits, claims, assessments, or proceedings pending or overtly threatened in written notice against Purchaser that could prevent or materially and adversely affect with Purchaser’s full performance of its obligations hereunder.
(iv)Purchaser has no intention of developing or using the Real Property for residential purposes and the Real Property is not considered by Purchaser as residential property.
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LAND SALE CONTRACT-341.3 ACRES IN HARRIS COUNTY, TX-XXXXX SPOILS TRACTS (EAST & WEST XXXXX PLACEMENT AREAS LLC & EQUITY RESOURCE PARTNERS-EAST WEST, LLC)
(v)To Purchaser’s Knowledge, Purchaser is not a party to, subject to or bound by any agreement or other document or any judgment, order, law or decree, which would prevent or be violated by any of the items set forth below; and no approval, order, authorization or consent of any governmental authority or any other person or entity, which has not been obtained, is required for or will arise out of any of the items set forth below:
(A)the execution, delivery and performance of this Contract and any other agreements, obligations and instruments referred to in or contemplated by this Contract; or
(B)the performance of the Closing pursuant to this Contract.
(vi)Neither Purchaser nor any person, group, entity or nation that Purchaser is acting, directly or indirectly for, or on behalf of, is named by any Executive Order (including the September 24, 2001, Executive Order Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism) or the United States Treasury Department as a terrorist, “Specially Designated National and Blocked Person,” or is otherwise a banned or blocked person, group, entity, or nation pursuant to any law that is enforced or administered by the Office of Foreign Assets Control, and Purchaser is not engaging in the transactions contemplated by this Contract, directly or indirectly, on behalf of, or instigating or facilitating the transactions contemplated by this Contract, directly or indirectly, on behalf of, any such person, group, entity or nation. Purchaser is not engaging in the transactions contemplated by this Contract, directly or indirectly, in violation of any laws relating to drug trafficking, money laundering or predicate crimes to money laundering. None of the funds of Purchaser have been or will be derived from any unlawful activity with the result that the investment of direct or indirect equity owners in Purchaser is prohibited by law or that the transactions contemplated by this Contract or this Contract is or will be in violation of applicable law.
For purposes hereof, “Purchaser’s Knowledge” shall mean and include only the actual personal (conscious) knowledge of X. Xxx Xxxxxxxx, the Manager of Purchaser, without inquiry or investigation of any kind other than that (if any) heretofore done by Purchaser to the extent the same is within in the actual personal knowledge of the individual named above, and expressly excluding implied, imputed or constructive knowledge of Purchaser or such individual, with Purchaser representing that such individual is familiar with the matters set forth herein. The reference herein to the knowledge of such individual defining Purchaser’s Knowledge for purposes hereof shall not render such individual personally liable under this Contract in any respect and Seller hereby expressly releases and waives any right of personal claims against such individual arising from the representations and warranties of Purchaser contained herein or any other aspect of performance or non-performance of this Contract.
9.Certain Covenants of Seller. In addition to the other covenants of Seller set forth elsewhere in this Contract, Seller covenants and agrees that during the term of this Contract Seller will not, without the prior written consent of Purchaser: (i) plat, restrict or encumber any portion of the Real Property (excluding rights obtained by condemnation); (ii) place or permit to be placed on, or remove or permit to be removed from, the Real Property any improvements of any material kind that are owned by Seller; (iii) assign, transfer, convey or knowingly relinquish any utility rights or capacities relating to the Real Property, if any; (iv) dissolve, or alter or amend its organizational documents in any manner that would interfere with Seller’s ability to perform any of its obligations under this Contract; (v) restart operation of the Real Property as a dredge spoils disposal facility in any manner; (vi) enter into any agreement regarding the Property that will survive Closing; (vii) make any material alterations to the Property except with the prior written consent of Purchaser, which consent shall not unreasonably be withheld, conditioned or delayed; or (viii) take or consent to any action that would affect the zoning, access, utility availability or other condition of the Property or any portion thereof.
10.The Closing. The consummation of the sale and purchase of the Property pursuant to this Contract (the “Closing”) shall be held on the first to occur of (a) the tenth (10th) day after the expiration of the Feasibility Period (as may be extended) or (b) September 29, 2023; or on such other date as may be mutually agreed upon in
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LAND SALE CONTRACT-341.3 ACRES IN HARRIS COUNTY, TX-XXXXX SPOILS TRACTS (EAST & WEST XXXXX PLACEMENT AREAS LLC & EQUITY RESOURCE PARTNERS-EAST WEST, LLC)
writing by Seller and Purchaser. The Closing shall be held at the offices of the Title Company or such other place as may be agreed to in writing by Xxxxxxxxx and Seller, but shall be completed by “escrow delivery” of all required documents and funds by each party as required for Closing no later than 3:00 p.m., local Houston time, on the Closing Date rather than by personal attendance at the Closing, and each party authorizing Closing and disbursement of funds by the Title Company (provided that the other party has met its Closing obligations hereunder) no later than 5:00 p.m., local Houston time, on the Closing Date. The exact day that the Closing occurs hereunder is herein called the “Closing Date.”
(a)Seller Closing Deliveries. At the Closing, Seller shall deliver or cause to be delivered to Purchaser, at Seller’s sole cost and expense, the following, which delivery obligations shall be conditions concurrent with Purchaser’s Closing obligations:
(i)A Special Warranty Deed (the “Deed”) in the form attached hereto as Exhibit B-1 (and made a part hereof for all purposes as an agreed form only), fully executed and acknowledged by Seller, subject to the Permitted Exceptions. The Property is deed restricted against certain uses competitive with Seller as set forth in the Deed (the “Deed Restriction”). At Purchaser’s request, the Deed shall be modified to reserve a vendor’s lien in favor of a third party lender from whom Purchaser is obtaining acquisition and/or development financing, if applicable, but assigned over from Seller to such lender without recourse or warranty. The metes and bounds description used in the Deed shall be the description provided with the Existing Survey unless Seller accepts the legal description from an Updated Survey obtained by Purchaser, which approval by Seller will not be unreasonable withheld, conditioned or delayed, and otherwise the legal description from an Updated Survey shall be quitclaimed or additionally conveyed without warranty or its equivalent to Purchaser. The Deed will contain use restrictions as set forth therein.
(ii)A Bill of Sale and Assignment and Assumption Agreement in the form attached hereto as Exhibit B-2, by which Seller assigns to Purchaser all right, title and interest of Seller, if any, in and to the Intangibles and Purchaser accepts the Intangibles and accepts and assumes the Seller Unrecorded Agreements (the “Bill of Sale & Assignment”);
(iii)At Seller’s sole cost and expense except as set forth below, a Texas standard form of Owner’s Policy of Title Insurance as prescribed by the Texas State Board of Insurance (the “Owner’s Policy”), dated as of the Closing Date and issued by the Title Company, insuring Purchaser’s fee simple title to the Property in the full amount of the Purchase Price pursuant to the most recent Title Commitment issued by the Title Company in favor of Purchaser before Closing. The Owner’s Policy shall be subject to all promulgated form exceptions in the Title Commitment and the Permitted Exceptions; provided, however, that, as to promulgated or pre-printed form exceptions:
(A)the standard survey exception (i.e., Item 2 of Schedule B of the standard title commitment form) shall, at Purchaser’s option and expense and if permitted with the Survey or an Updated Survey obtained by Purchaser, be modified to read “shortages in area” only (other specific exceptions may be made based on matters actually shown on the Survey and Updated Survey);
(B)the exception for liens for standby fees and taxes (etc.) shall be completed to refer to the year of Closing in the blank provided for a tax year in that form exception;
(C)the exception for restrictive covenants shall be deleted if there are none of record; and
(D)Purchaser may obtain, at its sole expense, such other endorsements and deletions from the standard Owner’s Policy as are (1) available under applicable Title Insurance regulations, (2) offered by the Title Company, and (3) paid for by Purchaser and as to which all conditions for issuance have been met by Purchaser at Purchaser’s sole expense by Closing.
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LAND SALE CONTRACT-341.3 ACRES IN HARRIS COUNTY, TX-XXXXX SPOILS TRACTS (EAST & WEST XXXXX PLACEMENT AREAS LLC & EQUITY RESOURCE PARTNERS-EAST WEST, LLC)
(iv)The Certificate as to Non-Foreign Status described in Section 14 hereof, fully executed by Xxxxxx.
(v)Complete and full possession of the Real Property, including any and all improvements thereon, free and clear of all tenancies and leaseholds of every kind and all parties in possession except those having rights under the Permitted Exceptions.
(vi)Intentionally omitted.
(vii)Such authority documentation as the Title Company shall reasonably require to confirm Seller’s authority to consummate the Closing and convey the Property to Purchaser as herein provided.
(viii)Any notice of deed restrictions required under applicable law and any notice of utility district disclosures as required by law or Title Company underwriting, if applicable.
(ix)An affidavit as to debts, liens and possession in favor of the Title Company in form reasonably acceptable to the Title Company and Seller, whereby Seller assures the Title Company (among other things reasonably requested by the Title Company) that to Seller’s Knowledge as of the date of Closing there are no liens on the Property not being paid off by Seller at Closing, there are no unpaid bills for work performed by Seller on the Property or contiguous property owned by Seller that could give rise to mechanic’s or materialmen’s liens or claims associated with such work (and indemnifying the Title Company from any such claims), and there are no parties in possession of the Property other than third parties who have rights to possession or placement of pipelines or improvements on the Property pursuant to the Permitted Encumbrances or the Seller Unrecorded Agreements (if any).
(b)Purchaser Closing Deliveries. At the Closing, Purchaser shall deliver or cause to be delivered to Seller, as a condition concurrent with Seller’s Closing obligations, the following:
(i)The Purchase Price for the Property in the form of cash, Title Company check, or other immediately available funds.
(ii)Such certificates, acknowledgements and confirmations as the Title Company reasonably requires of Purchaser in connection with issuance of the Owner’s Policy to Purchaser.
(iii)Intentionally omitted.
(iv)The Bill of Sale & Assignment;
(v)Any notice of deed restrictions required under applicable law and any notice of utility district disclosure(s) as required by law or Title Company underwriting, if applicable.
(vi)Such authority documentation as the Title Company shall reasonably require to confirm Purchaser’s authority to consummate the Closing and acquire the Property as herein provided.
(c)Tax Prorations. Seller shall be responsible for all standby fees and ad valorem taxes and assessments with respect to the Property (and any PILOT obligations [“payments in lieu of taxes”] under any Industrial District Agreement) for all periods prior to the Closing and Purchaser shall be responsible for all standby fees and ad valorem taxes (and any PILOT obligations under any Industrial District Agreement) accruing on or after the Closing. Standby fees and ad valorem taxes with respect to the Real Property for the year of Closing shall be prorated between Seller and Purchaser at Closing, as of the Closing Date. All ad valorem tax prorations shall be
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LAND SALE CONTRACT-341.3 ACRES IN HARRIS COUNTY, TX-XXXXX SPOILS TRACTS (EAST & WEST XXXXX PLACEMENT AREAS LLC & EQUITY RESOURCE PARTNERS-EAST WEST, LLC)
based on tax rates and assessments for the calendar year during which the Closing occurs unless such rates and/or assessments are unavailable (in which case the most recent available tax rates shall be applied to the most recent assessed valuation). Only Seller may protest ad valorem taxes or tax valuations of the Real Property for the year of Closing (or any prior year or years), and Purchaser waives any right to protest taxes for any such years. Seller and Purchaser shall readjust tax prorations under this Section post-closing when actual property tax bills are available for the year of Closing. The provisions of this Section 10(c) shall survive the Closing.
(d)Costs of Closing. Purchaser shall pay the cost of all of its due-diligence and Access Activities, the cost of any Updated Survey, the cost of any modifications and/or endorsements to the standard Owner’s Policy (including, without limitation, the deletion of the survey exception other than shortages in area) to the extent the same are available to Purchaser, and one-half (1/2) of any Title Company escrow fees. Seller shall pay the recording costs for the Deed, the base premium for the Owner’s Policy (without modifications and/or endorsements), the cost of property tax certificates showing taxes paid through the year prior to the year of Closing, one-half (1/2) of any Title Company escrow fees, and all payments necessary to clear the Real Property of Mandatory Cure Items, if any. Each party shall bear its own attorney’s fees relating to this transaction and all other costs of performing its own obligations under this Contract.
11.Defaults and Remedies.
(a)Seller’s Default. Purchaser agrees to use commercially reasonable efforts to provide Seller prompt and reasonably specific written notice of any default by Seller (of which Purchaser has actual knowledge) within ten (10) days after Purchaser gains such actual knowledge of default, but any failure to give such notice shall in no way be deemed a waiver of such default. If prior to or at Closing Seller fails to perform or breaches any of Seller’s material obligations or covenants under this Contract (other than breach of Seller representations or warranties, the remedies for which are provided in Section 8(c) hereof) and such failure or breach is not cured by Seller by the date that is the earlier of the Closing Date or ten (10) days after Purchaser’s written notice to Seller reasonably describing the failure to perform or breach of covenant by Seller (except obligations due to be performed at Closing, for which no notice and cure is required) for any reason other than (x) the termination of this Contract by Seller or Purchaser pursuant to any right to terminate expressly set forth in this Contract (other than this Section), or (y) Purchaser’s failure to perform Purchaser’s material obligations under this Contract, and such default or breach is not waived or deemed waived by Purchaser hereunder, then Purchaser, at Purchaser’s option and as Purchaser’s sole and exclusive remedy (subject to Section 11(c) hereof), shall have the right to either:
(i)terminate this Contract by giving written notice thereof to Seller, whereupon all Xxxxxxx Money shall be refunded to Purchaser (inclusive of all Independent Consideration) free and clear of all rights and claims of Seller with respect thereto, Seller shall promptly reimburse Purchaser for Purchaser’s Pursuit Costs for which Purchaser makes timely documented demand, and neither Purchaser nor Seller shall have any further rights or obligations hereunder except for any Surviving Obligations of such party; or
(ii)enforce specific performance of the obligations of Seller under this Contract only if and so long as (A) Purchaser gives notice to Seller of its election to do so within sixty (60) days after Seller’s failure to complete the Closing on the latest Closing Date provided for hereunder (or, if the agreement of the parties to such notice period is contrary to law, then by such date that is the shortest period after the latest required date for Closing that the parties may agree to by law), and (B) Purchaser files suit for specific performance within the six (6) months after giving its notice of intent to file suit (or, if the agreement of the parties to such latest date for filing suit is contrary to law, then by such date that is the shortest period that the parties may agree to under applicable law as a deadline for Purchaser to file such suit).
(b)Purchaser’s Default. Seller agrees to use commercially reasonable efforts to provide Purchaser prompt and reasonably specific written notice of any default by Purchaser (of which Seller has actual knowledge) within ten (10) days after Seller gains such actual knowledge of default, but any failure to give such notice shall in no way be deemed a waiver of such default. If prior to or at Closing Purchaser fails to perform or
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LAND SALE CONTRACT-341.3 ACRES IN HARRIS COUNTY, TX-XXXXX SPOILS TRACTS (EAST & WEST XXXXX PLACEMENT AREAS LLC & EQUITY RESOURCE PARTNERS-EAST WEST, LLC)
breaches any of Purchaser’s material obligations or covenants under this Contract and such failure or breach is not cured by Purchaser by the date that is the earlier of the Closing Date or ten (10) days after Seller’s written notice to Purchaser reasonably describing the failure to perform of breach of covenant by Purchaser (except obligations due at Closing, for which no notice and cure is required) for any reason other than (i) the termination of this Contract by Seller or Purchaser pursuant to any right to terminate expressly set forth in this Contract (other than this Section), or (ii) Seller’s failure to perform Seller’s material obligations under this Contract, and such default or breach is not waived or deemed waived by Seller hereunder, then Seller, as Seller’s sole and exclusive remedy (subject to Section 11(c) hereof), shall have the right to terminate this Contract by giving written notice thereof to Purchaser, in which event the Independent Consideration shall be retained by and/or paid over to Seller and the Net Xxxxxxx Money shall be delivered to Seller as agreed compensation to Seller free and clear of all rights and claims of Purchaser with respect thereto, and neither Purchaser nor Seller shall have any further rights or obligations under this Contract except the Surviving Obligations of such party.
(c)Certain Other Equitable Remedies Not Excluded. The foregoing remedies of the parties are in addition to each party’s rights, as they may exist under applicable law (but only after notice and opportunity to cure is provided as required in (a) or (b) hereof), to obtain declaratory judgment relief or injunctive or equitable relief to prevent the other party’s breach, threatened breach or continued breach of any pre-Closing covenant of the other party under this Contract, but Seller is waiving the right to seek specific performance of Purchaser’s obligations to close this transaction.
(d)Limitation on Purchaser’s Post-Closing Claims; Limitation on Seller’s Claims. Notwithstanding any provision to the contrary herein or in any document or instrument (including any deeds or assignments) executed by Seller and delivered to Purchaser at or in connection with the Closing (collectively, “Closing Documents”), after Closing Seller shall not have (and Seller is exculpated and released from) any claim or liability whatsoever with respect to, and Purchaser shall be forever barred from making or bringing any claims or asserting any liability or legal remedy of any kind against Seller with respect to, breaches by Seller of any of the representations and warranties, covenants or indemnities contained in this Contract (to the extent they survive Closing) or in any Closing Document, or under any other legal theory of recovery allowed to Purchaser against Seller in connection with the transaction contemplated by this Contract or the dealings of the parties related hereto (if not barred by this Contract), unless and until the aggregate amount of all claims, losses and recoveries which Purchaser would otherwise be entitled to recover against Seller exceed the Threshold Amount as defined below, and no such claims, losses or recoveries shall be made by Purchaser against Seller (except for and to the extent of Seller’s gross negligence or willful misconduct, in which event the Cap Amount shall not be applicable) to the extent that they exceed the Cap Amount as defined below. As used herein: (i) “Threshold Amount” means an amount equal to Fifty Thousand and No/100 Dollars ($50,000.00), and (ii) the “Cap Amount” means an amount equal to the Purchase Price (provided that if the Closing hereunder occurs after September 15, 2023 for any reason other than a default by Seller or Seller’s refusal or failure to close on or before such date, such amount shall equal One Million and no/100 Dollars ($1,000,000.00)), together with all costs of court and reasonable attorneys’ fees and costs of litigation of Purchaser otherwise recoverable in connection with enforcing or collecting on its remedies against Seller. The Cap Amount shall include the Threshold Amount. Purchaser shall not make any claim or bring any proceeding to enforce the liability of Seller unless Purchaser believes, in good faith, that it would be entitled to recover all or a portion of the alleged damages or other liability notwithstanding the limitations on Seller’s liability set forth in this paragraph. Except for and to the extent of Seller’s gross negligence or willful misconduct, Seller shall not be liable for (nor shall such claims count toward the Threshold Amount) indirect, special, consequential or punitive damages of any kind, and Purchaser shall be barred from and hereby waives any claim for the same. Notwithstanding anything contained herein to the contrary (and in no event shall inclusion of this provision in any way expand any liability of Purchaser), except or and to the extent of Purchaser’s gross negligence or willful misconduct, Purchaser shall not be liable for indirect, special, consequential or punitive damages of any kind, and Seller shall be barred from and hereby waives any claim for the same. The provisions of this paragraph survive Closing.
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LAND SALE CONTRACT-341.3 ACRES IN HARRIS COUNTY, TX-XXXXX SPOILS TRACTS (EAST & WEST XXXXX PLACEMENT AREAS LLC & EQUITY RESOURCE PARTNERS-EAST WEST, LLC)
12.Confidentiality; Press Releases.
(a)Confidential Information Provided to Purchaser. Purchaser acknowledges that during the course of its “due diligence” investigation of the Property prior to Closing hereunder, Purchaser may be provided by Seller or its agents, or may develop, confidential information regarding the Property, including, but not limited to, Seller Deliveries to be delivered to Purchaser pursuant to Section 6 hereof, and shall specifically include (without limitation) (i) all information developed from Purchaser tests, studies or inspections of the Property pursuant to this Contract and that is not otherwise available in the public domain, and (ii) the terms and conditions contained in this Contract (collectively, the “Confidential Information”). Purchaser hereby agrees not to disclose the Confidential Information to any person or entity at any time, save and except for Purchaser’s broker, attorneys, potential investors, potential lenders, consultants, managers, members, officers, directors, employees, other professional advisors, representatives, agents or contractors (the “Permitted Third Parties”), and then only to the extent reasonably necessary for such Permitted Third Parties to assist Purchaser in evaluating whether to acquire the Property and/or to secure financing for (or invest in) Purchaser’s acquisition of the Property should Seller elect to obtain financing or investors. Purchaser shall advise the Permitted Third Parties of the confidentiality of the Confidential Information and shall instruct the Third Parties not to disclose same to any individual or entity (except to the extent that any such Permitted Third Parties are already bound to confidentiality provisions contractually or pursuant to any licensing or similar requirements or professional code of conduct). Purchaser shall only use the Confidential Information for the purpose of evaluating the Property. For purposes of this Contract, Confidential Information shall not include information provided by Seller to Purchaser that may be found in the public domain, but shall include all other information and documentation provided by Seller to Purchaser and any reports, correspondence, memoranda, and/or other writings generated by Purchaser or Purchaser’s Agents resulting from an analysis of the Confidential Information provided by Seller or from Access Activities. In the event this Contract terminates for any reason, Purchaser shall return to Seller or destroy all Seller Deliveries provided by Seller and deliver to Seller or destroy any Confidential Information that is derived from or based upon (in any material respect) and of the Seller Deliveries. Purchaser may disclose Confidential Information in its pleadings in bringing or defending any legal action or proceedings between the parties before or after Closing, subject to Seller’s reserved rights to require or request that pleadings containing Confidential Information be sealed if the court approves the same for purposes of maintaining the confidentiality of Confidential Information. The provisions of this Section 12(a) survive termination of this Contract for any reason, but expire upon completion of the Closing.
(b)No Press Releases. Neither party may issue press releases or other public communications announcing the transaction contemplated by this Contract without the consent of the other parties. Notwithstanding the foregoing, even if consented to by the other party no such press release or other communication shall include any information (other than the identification of the parties) that is required to be kept confidential pursuant to the other provisions of this Section. Purchaser and Seller each agrees to direct its broker(s) (including Purchaser directing Purchaser’s Broker) to abide by the confidentiality provision herein, but in no event shall a breach of this provision by any such broker be deemed a default by Purchaser or Seller. Notwithstanding the foregoing, upon completion of the Closing, Purchaser may issue press releases or other public communications announcing its purchase of the Property without the consent of Seller.
(c)Compelled Disclosure. Purchaser may disclose Confidential Information as needed to comply with all laws, rules, regulations and court orders, including, without limitation, governmental regulatory, disclosure, tax and reporting requirements and subpoenas and other orders of any court; provided, however, that if Purchaser is required by applicable subpoena or court order to disclose any Confidential Information, then Purchaser agrees to furnish only that portion of the Confidential Information which Purchaser is legally compelled to disclose and to use its commercially reasonable efforts to obtain assurance that, if possible, confidential treatment will be accorded to the Confidential Information required to be disclosed, and shall notify Seller in writing as promptly as possible of the demanded/compelled disclosure of Confidential Information under subpoena or court order so that Seller may promptly attempt to resist the same at its own expense.
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LAND SALE CONTRACT-341.3 ACRES IN HARRIS COUNTY, TX-XXXXX SPOILS TRACTS (EAST & WEST XXXXX PLACEMENT AREAS LLC & EQUITY RESOURCE PARTNERS-EAST WEST, LLC)
13.Real Estate Commission. Purchaser represents to Seller that it has not engaged or dealt with any real estate agents or brokers in connection with this transaction other than CBRE, Inc. (Xxxx Xxxxx and Xxxxxx Xxxxxx), who represent Seller in this transaction (“Seller’s Broker”) and to whom Seller will pay a commission (when and if Closing occurs) in accordance with their separate written commission agreement, and DFW Xxx & Associates, a Texas licensed real estate brokerage company (C. E. “Trey” Xxxxx, XXX, Agent), who represents Purchaser in this transaction (“Purchaser’s Broker”) and to whom Seller will pay a commission (when and if Closing occurs) in accordance with their separate written commission agreement. Each party hereby agrees to indemnify, defend and hold harmless the other from and against any and all claims of any agent, broker, finder or other similar party claiming through or under the indemnifying party other than the commission due Seller’s Broker under the written agreement between Seller and Xxxxxx’s Broker as referenced above.
14.Xxxxxx’s Non-Foreign Status. Seller represents and warrants that Seller is not a “foreign person,” as defined in Section 1445 of the Internal Revenue Code of 1986, as amended, and in the Rules and Regulations promulgated by the Treasury Department with respect thereto (collectively, “Federal Tax Law”). Therefore, at the Closing, Seller will deliver to Purchaser a certificate so stating, subscribed and sworn to by Xxxxxx, complying with Federal Tax Law (the “Certificate as to Non-Foreign Status”). If Seller fails to deliver the Certificate as to Non-Foreign Status at the Closing as described above, then the Title Company is hereby authorized to withhold from the Purchase Price otherwise payable to Seller, all sums required to be withheld by Purchaser under Federal Tax Law (and if the cash portion of the Purchase Price is insufficient for such purpose, then Seller shall deliver the shortfall in cash into escrow with the Title Company at Closing), and the Title Company will deliver such amount withheld (and/or delivered by Seller) to the Internal Revenue Service together with the appropriate forms prescribed by the U.S. Department of the Treasury, with copies being contemporaneously sent to both Seller and Purchaser.
15.Time. Time is of the essence in all matters pertaining to the performance of this Contract.
16.Authority. Each party to this Contract warrants and represents to the other that such party has full power and authority to enter into and perform its obligations under this Contract in the names, titles and capacities herein stated and on behalf of any entities, persons, estates or firms represented or purported to be represented by such person, and that all approvals, consents and authorizations necessary or required by any state and/or federal law or private agreement in order for such party to enter into and perform its obligations under this Contract have been obtained and all legal requirements fully complied with.
17.Notices. Any notice, demand or request which may be permitted, required or desired to be given in connection therewith shall be given in writing and directed to Seller and purchaser as follows:
IF TO SELLER: WITH SIMULTANEOUS REQUIRED COPY TO: | East and West Xxxxx Placement Areas, LLC c/o Orion Group Holdings, Inc. 00000 Xxxxxxxxx Xxx., Xxxxx 000 Xxxxxxx, XX 00000 Xxxxxxxxx: Mr. Xxxx Xxxxxxx Xxx/Faxmail No.: (713) 852-6594 Email: xxxxxxxx@xxx.xxx Xxxxxxxx Xxxxxxx, Esquire Schlanger Silver LLP 109 N. Post Oak Xx., Xxxxx 000 Xxxxxxx, Xxxxx 00000 Xxx or Email: xxxxxxxx@xxxxxxxxxxxxxxx.xxx |
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LAND SALE CONTRACT-341.3 ACRES IN HARRIS COUNTY, TX-XXXXX SPOILS TRACTS (EAST & WEST XXXXX PLACEMENT AREAS LLC & EQUITY RESOURCE PARTNERS-EAST WEST, LLC)
IF TO PURCHASER: WITH SIMULTANEOUS REQUIRED COPY TO: | Equity Resource Partners-East West, LLC c/o Southwood Development Company, LLC 80 Xxxx Xxxxxx Xxxx XX, Xxxxx 000 Xxxxxxx, Xxxxxxx 00000-0000 Xxxxxxxxx: 770.444.3511 Attn: X. Xxx Xxxxxxxx and Xxx Xxxxxxx VII Email: xxxxxxxxx@xxxxxxxxxxxx.xxx xxx xxxxxxxx@xxxxxxxxxxxx.xxx Xxxxxx Xxxxx & Xxxx, LLC 2849 Xxxxx Xxxxx Xxxx XX, Xxxxx 000 Xxxxxxx, Xxxxxxx 00000 Xxxxxxxxx: Xxxx X. Xxxx and Xxxxx X. Xxxxxxxxx Xxxxxxxxx No.: 404.853.5050 Email: xxxxx@xxxxxxxx.xxx and xxxxxxxxxx@xxxxxxxx.xxx |
Notices shall be sent and given, and deemed properly delivered and received, only as follows: (i) on the date delivered to the party’s effective notice address hereunder, if hand delivered; (ii) on the date delivered to the party’s effective notice address hereunder, if delivered by nationally-recognized overnight courier or private, receipted same-day courier; (iii) on the date of actual delivery at the party’s effective notice address hereunder (which will be deemed the date of first attempted delivery if refused or left unclaimed) if by U.S. Mail, registered or certified, return receipt requested, properly addressed and postage prepaid, or (iv) on the date sent via facsimile transmission and confirmed as successful delivery by the sender’s transmission equipment or by email, provided that (A) if sent via email or fax after normal business hours in the local time of the sender’s office, the notice will not be deemed given until the following business day, and (B) the sender must contemporaneously send the same notice by same-day or overnight courier on the same day as the email or fax is intended to be effective as notice. By giving written notice of such change to the other parties hereto at least fifteen (15) days prior to the intended effective date of such change, any party may change its notice address, fax number and email address for purposes hereof to any address that is (or includes) a street address within the continental United States that allows overnight delivery to such address and that must, in all cases, include a current email OR fax/faxmail number for the party
18.Condemnation.
(a)Risk of Loss. Seller shall bear all risk of condemnation of the Property until the Closing.
(b)Purchaser’s Option to Cancel. If prior to the Closing a material portion of the Real Property is taken by eminent domain or made the subject of filed condemnation proceedings, then Seller shall give Purchaser prompt written notice thereof and Purchaser may elect, by written notice to Seller within ten (10) days after Purchaser shall have received written notice of such event from Seller, to terminate this Contract. Failure of Purchaser to timely elect to cancel this Contract is deemed Purchaser’s waiver of the right to terminate under this Section. If Purchaser timely elects to cancel this Contract, as aforesaid, then the Title Company will return the Net Xxxxxxx Money to Purchaser free and clear of all rights and claims of Seller with respect thereto, the Independent Consideration will be delivered to Seller, and thereafter neither Seller nor Purchaser shall have any further rights or obligations hereunder except the Surviving Obligations. For purposes hereof, a “material portion of the Real Property” means any portion of the Real Property except a widening of an adjacent roadway by ten (10) feet or less and except any taking that is a total of five (5) acres or less.
(c)Failure to Cancel. If a less than material portion of the Real Property is taken by eminent domain or made the subject of condemnation proceedings prior to Closing, or a material portion of the Real Property is taken by eminent domain or made the subject of condemnation proceedings prior to Closing and Purchaser does not elect to terminate this Contract pursuant to Section 18(b) hereof, then at the Closing the following shall occur:
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LAND SALE CONTRACT-341.3 ACRES IN HARRIS COUNTY, TX-XXXXX SPOILS TRACTS (EAST & WEST XXXXX PLACEMENT AREAS LLC & EQUITY RESOURCE PARTNERS-EAST WEST, LLC)
(i)The Property shall exclude any part of the Real Property that is taken in condemnation prior to Closing;
(ii)Seller shall credit on account of the Purchase Price the amount of all condemnation awards actually received by Xxxxxx (whether retained by Seller or paid directly to the holder of any lien on the Real Property); and
(iii)Seller shall also assign, transfer and set over to Purchaser all of Seller’s right, title and interest in and to any awards that may be made with respect to any pending or future condemnation proceeding.
(d)Control of Condemnation Proceedings Before End of Feasibility Period. In the event of condemnation proceedings, Seller shall have sole authority with respect to such proceedings and the prosecution of any claim therein (subject to the limitations of Section 18(e) hereof and Purchaser’s continuing right to terminate during the Feasibility Period as stated elsewhere in this Contract). Additionally, Seller shall keep Purchaser reasonably apprised of all actions taken or agreed to by Seller in such proceeding prior to termination of this Contract or Closing, whichever occurs first. If the Feasibility Period has expired, Xxxxxx agrees that it will not agree to an award or convey the Real Property to the condemning authority in lieu of condemnation prior to Closing without Purchaser’s prior written consent, which shall not be unreasonably withheld, conditioned or delayed.
(e)Control of Condemnation Proceedings After Purchaser is “At-Risk”. After the Feasibility Period has expired or been waived and if Purchaser opts (or is deemed to have opted) not to cancel, Xxxxxx agrees that it will not agree to an award or convey the Real Property to the condemning authority in lieu of condemnation prior to Closing without Purchaser’s written consent, which consent shall not be unreasonably withheld, conditioned or delayed by Purchaser. If Seller’s lienholder on the Real Property is entitled under its lien instruments to control such condemnation proceeding, and if such lienholder makes any material substantive decision in such proceeding that is unacceptable to Purchaser and that affects the final settlement of the claim in some material respect, then Purchaser shall be entitled to terminate this Contract by written notice to Seller and receive a full refund of the Net Xxxxxxx Money free and clear of all rights and claims of Seller with respect thereto, the Independent Consideration will be delivered to (or retained by) Seller, and neither Seller nor Purchaser shall have any further rights or obligations hereunder except the Surviving Obligations.
19.Entire Contract: Effective Date. This Contract represents the entire agreement by and between Purchaser and Seller with regard to the subject matter dealt with herein, and it may not be modified except by written amendment executed by Xxxxxxxxx and Seller. The “Effective Date” hereof is the date on which the Title Company receives fully executed counterparts of this Contract, signed by Seller and Purchaser (including if delivered by fax or electronically), as indicated in the receipt.
20.Successors and Assigns. This Contract shall inure to the benefit of and be binding on the parties hereto and their respective successors, and assigns. This Contract is for the sole benefit of Seller and Purchaser, and no third party is intended to be a beneficiary of this Contract. Without the consent of Seller, Purchaser may assign this Contract, (x) only in its entirety, (y) only to any third party whose ownership and use of the Real Property post-Closing will not violate the Deed Restriction and (z) only if Xxxxxxx Xxxxxx, X. Xxx Xxxxxxxx and Xxxx X. Xxxx are principals of such assignee, whether directly or indirectly, through the Closing Date; provided that, such assignment shall not be effective as to Seller until Seller has received (at least 3 business days prior to Closing) (i) a written copy of an assignment and assumption agreement executed by Xxxxxxxxx and its assignee (whereby in addition to assignment hereof the assignee expressly assumes all liabilities and obligations of the Purchaser arising hereunder), (ii) the name, address, phone number, email and contact person for the assignee and (iii) evidence that Xxxxxxx Xxxxxx, X. Xxx Xxxxxxxx and Xxxx X. Xxxx are principals of such assignee, whether directly or indirectly. Nothing in such assignment shall require Seller to re-perform for the assignee any obligations of Xxxxxx previously performed for the original or previous Purchaser hereunder prior to its receipt of notice and a copy of the assignment and it shall be any
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LAND SALE CONTRACT-341.3 ACRES IN HARRIS COUNTY, TX-XXXXX SPOILS TRACTS (EAST & WEST XXXXX PLACEMENT AREAS LLC & EQUITY RESOURCE PARTNERS-EAST WEST, LLC)
assignee’s sole responsibility to obtain from the assigning Purchaser any/all information previously provided by Seller hereunder or obtained by Purchaser in its investigations of the Property.
21.Governing Law. The terms, provisions and conditions of this Contract shall be governed by and construed in accordance with the laws of the State of Texas. Venue for all suits and actions arising out of or in connection with this Contract shall be proper only in the state and federal courts sitting in Harris County, Texas, and each party hereby consents to the assertion of personal jurisdiction by such courts over such party for the limited purposes of such suit but does not waive requirement for service of process in the manner prescribed by law.
22.Severability. If any provision of this Contract shall, for any reason, be held to be illegal, invalid or unenforceable, then the other provisions of this Contract shall not be rendered invalid or otherwise affected thereby, all of which remaining provisions shall continue in full force and effect to the maximum extent permitted by applicable law.
23.Survival of Covenants; Further Assurances. The representations, warranties and covenants of Seller and Purchaser contained in this Contract shall (to the extent not fully performed at or before Closing) survive the Closing, subject to the limitations on survival expressly stated elsewhere in this Contract. Seller and Purchaser each agree to execute and deliver such other documents, on or after the Closing Date, as are reasonably necessary to give effect to and carry out the transaction herein contemplated.
24.Exhibits. All exhibits referenced in this Contract are attached hereto and incorporated herein by this reference and shall constitute a part of the terms, covenants, conditions and provisions hereof, as if set forth herein verbatim.
25.Tax-Deferred Exchange. Either Seller or Purchaser may consummate the sale of the Real Property as part of a so-called like kind exchange (the “Exchange”) pursuant to §1031 of the Internal Revenue Code of 1986, as amended, and the other party will provide reasonable cooperation to assist the party desiring to implement an Exchange in accomplishing its Exchange, provided that (i) all costs, fees, and expenses attendant to the Exchange shall be the sole responsibility of the party consummating the Exchange; (ii) the Closing shall not be delayed or affected by reason for the Exchange nor shall the consummation or accomplishment of the Exchange be a condition precedent or condition subsequent to Seller’s obligations and covenants under this Contract; (iii) neither Purchaser nor Seller shall be required to (1) acquire or hold title to any real property other than the Real Property for purposes of consummating the Exchange, (2) have its rights under this Contract, including (without limitation) those that survive Closing, affected or diminished in any manner, or (3) be responsible for compliance with or be deemed to have warranted to the other party that the Exchange in fact complies with §1031 of the Internal Revenue Code of 1986, as amended.
26.Industrial District Agreement. The parties acknowledge that the Industrial District Agreement was never partially assigned to and assumed by Seller. According to discussions between Seller and the City of Houston, it is Seller’s general understanding that the City only considers a small part of the Real Property (approximately per Exhibit F attached hereto and incorporated herein by this reference) to be included in the Industrial District Agreement because the City indicated that the Industrial District area for the Houston Ship Channel is established as being all lands within a set distance from the centerline of the Ship Channel. Seller will use commercially reasonable efforts to confirm within ninety (90) days following the Effective Date the status of the Industrial District Agreement, including whether the above land area is the only portion subject thereto (which according to Seller’s oral conversations with HCAD is currently being honored in any event) or all of the Real Property is subject to the Industrial District Agreement pursuant to the legal description included therein, the partial assignability of the Industrial District Agreement to Seller from its predecessor(s) in title, the partial assignability of the Industrial District Agreement from Seller to Purchaser and any consent of the City Finance Director to any such assignment as provided in the Industrial District Agreement, with Purchaser reasonably cooperating therewith. Through the date of Closing and for a period of up to one year thereafter (this provision being agreed to survive Closing for that period), Seller and Purchaser agree to work together in good faith to enter into agreements with the City to have the Industrial District Agreement (i) released as to all parts of
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LAND SALE CONTRACT-341.3 ACRES IN HARRIS COUNTY, TX-XXXXX SPOILS TRACTS (EAST & WEST XXXXX PLACEMENT AREAS LLC & EQUITY RESOURCE PARTNERS-EAST WEST, LLC)
the Property not affected thereby, (ii) put in Seller’s name (if prior to Closing) or Purchaser’s name as to the portion of the Property not released therefrom, and (iii) consented to by the City for transfer from Seller to Purchaser (if put in Seller’s name prior to Closing), in forms reasonably acceptable to Seller and Purchaser. Notwithstanding the foregoing, Purchaser hereby agrees to indemnify Seller for any obligations arising out of the Industrial District Agreement attributable to the Real Property for periods on or after Closing (subject to Seller’s indemnity below) and Seller agrees to indemnify Purchaser for any obligations arising out of the Industrial District Agreement attributable to the Real Property for periods prior to Closing and also for any obligations arising out of the Industrial District Agreement attributable to periods after Purchaser or its affiliates no longer hold title to the Real Property (but not beyond the expiration of the Industrial District Agreement by its terms without extension requiring mutual agreement) to the extent the same are assessed against Purchaser or its affiliates due to Seller’s failure to have the Industrial District Agreement duly assigned to Seller and/or Purchaser, with such indemnities surviving Closing.
27.Certain Required Notices/Disclosures.
(a)Notice Regarding Possible Liability For Additional Taxes. If for the current ad valorem tax year the taxable value of the Real Property is determined by a special appraisal method that allows for appraisal of the Real Property at less than its market value, Purchaser may not be allowed to qualify the Real Property for that special appraisal in a subsequent year and the Real Property may then be appraised at its full market value. In addition, the transfer of the Real Property or a subsequent change in the use of the Real Property may result in the imposition of an additional tax plus interest as a penalty for the transfer or the change in use of the Real Property. The taxable value of the Real Property and the applicable method of appraisal for the current tax year is public information and may be obtained from the tax appraisal district established for the county in which the Real Property is located. If Seller has claimed the benefit of laws permitting a special use valuation for the purpose of ad valorem taxes on the Real Property and if, after the Closing, Purchaser changes the use of the Real Property from its present use and such change results in the assessment of additional taxes, then those additional taxes will be Purchaser’s obligation, notwithstanding that some or all of those additional taxes may relate back to the period prior to Closing.
(b)Notice Regarding Property in Unincorporated Area/Notice of Possible Annexation. IF ANY PORTION OF THE PROPERTY IS LOCATED OUTSIDE THE LIMITS OF A MUNICIPALITY, THE PROPERTY MAY NOW OR LATER BE INCLUDED IN THE EXTRATERRITORIAL JURISDICTION OF A MUNICIPALITY AND MAY NOW OR LATER BE SUBJECT TO ANNEXATION BY THE MUNICIPALITY. EACH MUNICIPALITY MAINTAINS A MAP THAT DEPICTS ITS BOUNDARIES AND EXTRATERRITORIAL JURISDICTION. TO DETERMINE IF ANY PORTION OF THE PROPERTY IS LOCATED WITHIN A MUNICIPALITY’S EXTRATERRITORIAL JURISDICTION OR IS LIKELY TO BE LOCATED WITHIN A MUNICIPALITY’S EXTRATERRITORIAL JURISDICTION, PURCHASER IS ADVISED TO CONTACT ALL MUNICIPALITIES LOCATED IN THE GENERAL PROXIMITY OF THE PROPERTY FOR FURTHER INFORMATION.
(c)Closed Municipal Landfill on the Property. Purchaser acknowledges that Seller has disclosed that a portion of the Real Property contains a closed solid waste/municipal landfill and is included in this sale transaction, the approximate location of which is described by diagram on Exhibit C, attached hereto.
(d)Real Estate Broker Notice to Purchaser. The Texas Real Estate License Act requires that Purchaser be advised that he should either (i) have an attorney examine an abstract of title to the Real Property, or (ii) obtain a title insurance policy covering the Real Property. Notice to that effect is, therefore, hereby given to and acknowledged by Purchaser.
(e)Disclosure of Tidally Influenced Property (Beach Disclosure). Seller makes and Purchaser accepts the disclosures set forth on Exhibit G, which is attached hereto and signed by Seller and Purchaser and incorporated herein by this reference. Such disclosure will at Seller’s written request be re-signed by the Purchaser at Closing with all appropriate Exhibits.
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LAND SALE CONTRACT-341.3 ACRES IN HARRIS COUNTY, TX-XXXXX SPOILS TRACTS (EAST & WEST XXXXX PLACEMENT AREAS LLC & EQUITY RESOURCE PARTNERS-EAST WEST, LLC)
(f)Coastal Area Property Notice. Seller makes and Purchaser accepts and acknowledges the disclosures set forth on Exhibit H, which is attached hereto and signed by Seller and Purchaser and incorporated herein by this reference. Such disclosure will at Seller’s written request be re-signed by the Purchaser at Closing with all appropriate Exhibits.
28.Saturday, Sunday or Legal Holiday. If any date set forth in this Contract for the performance of any obligation by Purchaser or Seller or for the delivery of any instrument or notice should be on a Saturday, Sunday or legal holiday, then the compliance with such obligations or delivery shall be deemed acceptable on the next business day following such Saturday, Sunday or legal holiday. For purposes of this Section, “legal holiday” shall mean any state or federal holiday for which financial institutions or post offices are generally closed in Harris County, Texas, for the observance thereof.
29.Headings; Construction. The headings contained in this Contract are for reference purposes only and shall not modify or affect this Contract in any manner whatsoever. Wherever required by the context, any gender shall include any other gender, the singular shall include the plural, and the plural shall include the singular. All references in this Contract to “herein”, “hereunder” or “hereby” shall refer to this entire Contract rather than any particular section, paragraph, subparagraph, clause or provision, unless specifically stated otherwise. All Exhibits referenced herein as being attached hereto are incorporated herein by reference for all purposes.
30.Time of Acceptance. Seller shall have until 5:00 P.M., local Houston (Texas) time, on April 5, 2023, to accept this Contract by executing an electronic copy of this Contract in the space provided for Seller’s signature and delivering the same to the Title Company. Contemporaneously with such acceptance by Seller, Seller shall send a copy of the fully executed Contract to Purchaser. This Contract shall automatically terminate if not accepted by Seller in the manner provided above within the time period specified in this Section. The Title Company shall immediately upon receipt of the fully executed Contract receipt for this Contract in the space provided below and promptly deliver an electronic copy of the fully executed, receipted Contract to Seller and one to Purchaser. This Contract may be executed in multiple counterparts, each of which shall constitute an original but all of which shall together constitute one and the same Contract.
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LAND SALE CONTRACT-341.3 ACRES IN HARRIS COUNTY, TX-XXXXX SPOILS TRACTS (EAST & WEST XXXXX PLACEMENT AREAS LLC & EQUITY RESOURCE PARTNERS-EAST WEST, LLC)
EXECUTED by the parties on the respective dates set forth below by their signatures, to be effective as of the Effective Date.
| PURCHASER: | ||||
| | ||||
| EQUITY RESOURCE PARTNERS-EAST WEST, | ||||
| | ||||
| By: | Southwood Development Company, LLC, a | |||
| | ||||
| | By: | /s/ X. Xxx Xxxxxxxx | ||
| | | | ||
| | Name: | X. Xxx Xxxxxxxx | ||
| | | | ||
| | Title: | Manager | ||
| | | | ||
| Date: April 25, 2023 | ||||
| | ||||
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LAND SALE CONTRACT-341.3 ACRES IN HARRIS COUNTY, TX-XXXXX SPOILS TRACTS (EAST & WEST XXXXX PLACEMENT AREAS LLC & EQUITY RESOURCE PARTNERS-EAST WEST, LLC)
| SELLER: | ||
| | ||
| EAST AND WEST XXXXX PLACEMENT AREAS, | ||
| | ||
| By: | /s/ XXXXXX XXXXX | |
| | | |
| Name: | XXXXXX XXXXX | |
| | | |
| Title: | PRESIDENT & CEO | |
| | | |
| Date: April 26, 2023 | ||
| | | |
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TITLE COMPANY SIGNATURE/RECEIPT PAGE FOLLOWS]
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LAND SALE CONTRACT-341.3 ACRES IN HARRIS COUNTY, TX-XXXXX SPOILS TRACTS (EAST & WEST XXXXX PLACEMENT AREAS LLC & EQUITY RESOURCE PARTNERS-EAST WEST, LLC)
FULLY EXECUTED COUNTERPARTS OF THIS CONTRACT SIGNED BY SELLER AND PURCHASER RECEIVED this 26 day of April, 2023 (the “Effective Date”). The undersigned agrees upon receipt of the Initial Xxxxxxx Money described in Section 3 hereof, in good, collected funds, and receipt of Purchaser’s completed IRS Form W-9, to promptly deposit the same in an interest-bearing money-market account as herein specified.
| TITLE COMPANY: | ||
| | ||
| XXXXXXX TITLE COMPANY | ||
| | ||
| | ||
| By: | /s/ Xxxxx Xxxxxx | |
| Print Name: | Xxxxx Xxxxxx | |
| Title: | Escrow Officer | |
| | ||
| | ||
$450,000.00 XXXXXXX MONEY RECEIVED from Purchaser by federal wire transfer of funds this day of April, 2023.
| TITLE COMPANY: | ||
| | ||
| XXXXXXX TITLE COMPANY | ||
| | ||
| | ||
| By: | | |
| Print Name: | | |
| Title: | | |
| | ||
| | ||
EXHIBITS:
Exhibit A-1 | - | Legal Description of the Real Property |
Exhibit A-2 | - | Seller Unrecorded Agreements |
Exhibit B-1 | - | Approved Form of Deed |
Exhibit B-2 | - | Approved Form of Bill of Sale and Assignment |
Exhibit C | - | Approximate Location of Landfill |
Exhibit D | - | Intentionally omitted |
Exhibit E | - | Intentionally omitted |
Exhibit F | - | Approximate Location of Land Intended to be Under Industrial District Agreement |
Exhibit G | - | Disclosure Notice Regarding Legal and Economic Risks of Purchasing Coastal Real Property Near a Beach |
Exhibit H | - | Notice Regarding Coastal Area Property |
Exhibit I | - | Pre-Approved Inspections |
Exhibit J | - | Map of Avoidance Areas |
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LAND SALE CONTRACT-341.3 ACRES IN HARRIS COUNTY, TX-XXXXX SPOILS TRACTS (EAST & WEST XXXXX PLACEMENT AREAS LLC & EQUITY RESOURCE PARTNERS-EAST WEST, LLC)
EXHIBIT A-1
Legal Description of the Real Property
TWO TRACTS OF LAND DESCRIBED AS FOLLOWS:
Tract One:
Being a tract of land containing a gross area of 199.5099 acres (8,690,649 square feet): of land and being in the Xxxxx Xxxxxxx Survey, Abstract No. 698 and the Xxxxxxx Xxxxx Survey, Abstract No. 78 in Harris County, Texas and being Tract No. 2 as described in Deed recorded in Volume 837, Page 553 of the Harris County Deed Records and Outlot 139 of the Deepwater Subdivision as recorded in Volume 75, Page 526 of the Harris Counts Map Records and being described more particularly by metes and bounds as follows:
BEGINNING at a 5/8 inch iron rod found on the intersection of the north right-of-way line of the Port Terminal Railway Association 100 foot right-of-way and the west right-of-way line of Xxxxxxx Road (60 feet wide);
THENCE S 86 degrees 57 minutes 10 seconds W a distance of 2185.56 feet along the north line of the Port Terminal Railway Association right-of-way to a 5/8 inch iron rod found for point;
THENCE S 41 degrees 58 minutes 13 seconds W a distance of 95.00 feet to a point in the meanders of Cotton Patch Bayou;
THENCE along the meanders of Cotton Patch Bayou as follows:
N 70 degrees 04 minutes 46 seconds W a distance of 227.42 feet to a point;
N 25 degrees 07 minutes 17 seconds W a distance of 208.02 feet to a point hi the north line of First Street (40’ wide) as described in Exhibit “A” in a deed for an 83.3747 acre tract as recorded in Harris County Film Code Number 000-00-0000;
THENCE N 87 degrees 01 minutes 08 seconds E a distance of 139.98 feet along the north line of the aforementioned First Street to a 5/8 inch iron rod found for corner;
THENCE N 00 degrees 48 minutes 35 seconds W a distance of 914.30 feet to a 5/8 inch iron rod found for point;
THENCE N 09 degrees 51 minutes 22 seconds E a distance of 190.00 feet to a 5/8 inch iron rod found for point;
THENCE along an arc to the left on a non-tangent curve having a central angle of 40 degrees 49 minutes 22 seconds, a radius of 1220.00 feet, an arc length of 869.24 feet, a chord bearing of N 24 degrees 05 minutes 31 seconds W, and a chord distance of 850.97 feet to a 5/8 inch iron rod found for point;
THENCE N 02 degrees 58 minutes 52 seconds W a distance of 1377.16 feet to a monument found on the south right-of-way line of First Street (60 feet wide), said point being the northwest corner of the herein described tract;
THENCE N87 degrees 01 minutes 10 seconds E a distance of 2627.54 feet along the south right-of-way line of FirstStreet to a 5/8 inch iron rod found for the northeast corner of Oulot 139 of the Deepwater Subdivision, said point being the intersection of the south line of First Street and the west line of Xxxxxxx Road;
THENCE S 03 degrees 01 minutes 31 seconds E a distance of 3481.31 feet along the west line of Xxxxxxx Road to the POINT OF BEGINNING of the herein described tract containing 199.5099 acres
BUT EXCLUDING THE FOLLOWING SAVE AND EXCEPT TRACT OF 0.2099 ACRES:
Exhibit A-1 - Page 1 of 3
LAND SALE CONTRACT-341.3 ACRES IN HARRIS COUNTY, TX-XXXXX SPOILS TRACTS (EAST & WEST XXXXX PLACEMENT AREAS LLC & EQUITY RESOURCE PARTNERS-EAST WEST, LLC)
and SAVE AND EXCEPT a 0.2099 acre tract for a 25 foot railway right-of-way described by metes and bounds as follows:
COMMENCING at a 5/8 inch iron rod found on the intersection of the north right-of-way line of the Port Terminal Railway Association 100 foot right-of-way and the west right-of-way line of Xxxxxxx Road (60 feet wide);
THENCE S 86 degrees 57 minutes 10 seconds W a distance of 236.09 feet along the north line of the Port Terminal Railway Association right-of-way to the POINT OF BEGINNING of the 25 foot railway right-of-way;
THENCE S 86 degrees 57 minutes 10 seconds W a distance of 61.48 feet to a point;
THENCE along an arc to the left having a central angle of 41 degrees 40 minutes 01 seconds, a radius of 563.13 feet, an arc length of 409.53 feet, a chord bearing of N 44 degrees 57 minutes 08 seconds E, and a chord distance of 400.56 feet to a point on the east right-of-way of Xxxxxxx Road;
THENCE S 03 degrees 01 minutes 31 seconds E a distance of 50.96 feet along the west right-of-way of Xxxxxxx Road to a point;
THENCE along an arc to the right having a central angle of 31 degrees 39 minutes 02 seconds, a radius of 588.14 feet, an arc length of 324.89 feet, a chord bearing of S 44 degrees 21 minutes 58 seconds W, and a chord distance of 320.78 feet to the POINT OF BEGINNING of the herein described right-of-way.
Exhibit A-1 - Page 2 of 3
LAND SALE CONTRACT-341.3 ACRES IN HARRIS COUNTY, TX-XXXXX SPOILS TRACTS (EAST & WEST XXXXX PLACEMENT AREAS LLC & EQUITY RESOURCE PARTNERS-EAST WEST, LLC)
Tract Two:
Being a tract of land containing 142.0521 acres (6,187,778 square feet) of land and being in the Xxxxx Xxxxxxx Survey, Abstract No, 698 in Harris County, Texas and being Tract No. 1 as described in Deed recorded in Volume 837, Page 553 of the Harris County Deed Records and being described more particularly by metes and bounds as follows:
BEGINNING at the intersection of the north line of the Port Terminal Railway Association 100 foot right-of-way and the west right-of-way line of Jefferson Road (100 feet wide), said point being the southeast corner of Outlot 108 of the Deepwater Towusite;
THENCE S 86 degrees 56 minutes 37 seconds W a distance of 1801.66 feet along the north line of the Port Terminal Railway Association right-of-way to a 5/8 inch iron rod set on the east right-of-way line of Xxxxxxx Road (60 foot right-of-way), said point being the southwest corner of the herein described tract;
THENCE N 03 degrees 01 minutes 31 seconds W a distance of 348.72 feet along the east right-of-way line of Xxxxxxx Road to a 5/8 inch iron rod set for point;
THENCE along an arc to the left of a non-tangent curve having a central angle of 12 degrees 40 minutes 49 seconds, a radius of 588.14 feet, an arc length of 130.16 feet, a chord bearing of N 08 degrees 04 minutes 14 seconds E and a chord distance of 129.89 feet to a 5/8 inch iron rod set in the east line of a 25 foot railroad easement as recorded in Volume 812, Page 474 of the Harris County Deed Records;
THENCE N 03 degrees 01 minutes 31 seconds W a distance of 3004.98 feet along the east line of the aforementioned 25 foot railroad easement to a 5/8 inch iron rod set in the south line of First Street (60 feet wide), said point being the northwest corner of the herein described tract;
THENCE N 87 degrees 05 minutes 46 seconds E a distance of 1775.03 feet along the south right-of-way line of First Street to a 5/8 inch iron rod set for the northeast corner of the herein described tract;
THENCE S 03 degrees 03 minutes 08 seconds E a distance of 3476.43 feet along the west right-of-way line of Jefferson Road to the POINT OF BEGINNING of the herein described tract containing 142.0521 acres (6,187,788 square feet) of land more or less.
Exhibit A-1 - Page 3 of 3
LAND SALE CONTRACT-341.3 ACRES IN HARRIS COUNTY, TX-XXXXX SPOILS TRACTS (EAST & WEST XXXXX PLACEMENT AREAS LLC & EQUITY RESOURCE PARTNERS-EAST WEST, LLC)
EXHIBIT A-2
Seller Unrecorded Agreements
[To be attached within the Feasibility Period pursuant to an amendment to this Contract, with Seller using commercially reasonable efforts to provide a list of Seller Unrecorded Agreements to be included hereunder promptly following the Effective Date, but in no event later than ninety (90) days following the Effective Date.]
Exhibit A-2 - Page 1 of 1
LAND SALE CONTRACT-341.3 ACRES IN HARRIS COUNTY, TX-XXXXX SPOILS TRACTS (EAST & WEST XXXXX PLACEMENT AREAS LLC & EQUITY RESOURCE PARTNERS-EAST WEST, LLC)
EXHIBIT B-1
Approved Form of Deed
NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY REMOVE OR STRIKE ANY OR ALL OF THE FOLLOWING INFORMATION FROM THIS INSTRUMENT BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: SOCIAL SECURITY NUMBER OR YOUR DRIVER’S LICENSE NUMBER
SPECIAL WARRANTY DEED
[WITH VENDOR’S LIEN]
THE STATE OF TEXAS | § | |
| § | KNOW ALL PERSONS BY THESE PRESENTS: |
COUNTY OF _HARRIS | § | |
THAT, , a (the “Grantor”), for and in consideration of the sum of TEN AND NO/100 DOLLARS ($10.00) and other good and valuable consideration in hand paid to Grantor by , a, whose address is (“Grantee”), [and the further consideration of certain monies paid to Grantor by (“Lender”) at the special instance and request of Grantee, pursuant to a loan evidenced by Xxxxxxx’s execution and delivery to Lender of a certain $ Promissory Note of even date herewith payable to Lender (the “Note”), the payment of which Note is secured by the vendor’s lien and superior title herein reserved by Grantor and hereby assigned by Grantor to Lender, without recourse or warranty, and which Note is additionally secured by a [Deed of Trust/Deed of Trust and Security Agreement/Fixture Filing] executed by Grantee to , Trustee, for the benefit of Lender as beneficiary (the “Deed of Trust”)], the receipt and sufficiency of which consideration are hereby acknowledged by Xxxxxxx, has GRANTED, SOLD and CONVEYED, and by these presents does XXXXX, SELL and CONVEY unto said Grantee all of the following described real property situated in Harris County, Texas, together with all improvements and fixtures thereon that are owned by Grantor, if any (the “Property”):
Approximately [341.3] acres of land in Harris County, Texas, as more particularly described on Exhibit “A” which is attached hereto and incorporated herein by reference;
together with all right, title and interest of Grantor, if any, in and to the following (i) a certain Access Easement Agreement (abandoned First St. and Xxxxxxx Xx.) dated as of November 1, 2012, recording under County Clerk’s File No. 20120511585 in the Real Property Records of Harris County, Texas, (ii) a certain reservation of drainage rights to access Cotton Patch Bayou in a Deed dated July 6, 1941, from Harris County Houston Ship Channel Navigation District to Xxxxxx & Xxxxxx, recorded at Volume 1163, Page 504 in the Real Property Records of Harris County, Texas, and related map recorded in Volume 20, Page 10 of the Map/Plat Records of Harris County, Texas, (iii) all other rights and appurtenances (including, without limitation, easements appurtenant) to the Property, if any, and (iv) all right, title and interest of Grantor, if any, in and to other easements or rights in any roads, streets, alleys, strips or gores of land immediately adjacent to the Property, if any (including without limitation any rights in abandoned First St. and Xxxxxxx Xx.) (collectively, the “Related Rights”). Notwithstanding the foregoing, however, the Property as defined herein specifically excludes the following: all telecommunications facilities, electric facilities, sanitary sewer, storm sewer, water pipelines and chemical products pipelines (including oil, gas and other petrochemical products pipelines) situated within the Property that are not owned by Seller.
This conveyance is expressly made by Grantor and accepted by Grantee subject to the easements, restrictions, and other encumbrances specified in Exhibit “B” attached hereto and incorporated herein by reference, to the extent same are now in force and affect the Property (the “Permitted Exceptions”) and is subject to the following restrictive
Exhibit B-1 - Page 1 of 5
LAND SALE CONTRACT-341.3 ACRES IN HARRIS COUNTY, TX-XXXXX SPOILS TRACTS (EAST & WEST XXXXX PLACEMENT AREAS LLC & EQUITY RESOURCE PARTNERS-EAST WEST, LLC)
covenant that shall be in effect for a period of fifteen (15) years after the effective date hereof for the benefit of and enforceable by Seller and its successors and assigns during that period:
The Property shall not be used for dredge spoils disposal, storage, processing, placement or similar uses on a contract, third-party basis (a “Dredge Spoils Business”); provided, however, that the foregoing shall not be construed to prohibit Grantee and its successors and assigns from grading, filling and relocating soils from one place to another on the Property or from nearby property to the Property in connection with development of the Property for commercial purposes that are not directly an operation of a Dredge Spoils Business as defined above.
TO HAVE AND TO HOLD the Property, together with all and singular the rights and appurtenances thereto in anywise belonging, unto the said Grantee, its successors and assigns forever, subject to the Permitted Exceptions; and Grantor does hereby bind itself and its successors and assigns, to WARRANT AND FOREVER DEFEND, all and singular the said Property unto the said Grantee, its successors and assigns, against every person whomsoever lawfully claiming or to claim the same or any part thereof, by, through or under Grantor, but not otherwise, subject, however, to the Permitted Exceptions.
[A vendor’s lien and superior title in and to the Property is hereby retained by Grantor until the Note is fully paid in accordance with the face, tenor, effect and reading thereof, at which time this Deed shall become absolute.]
Taxes for the current year have been prorated between the parties and are hereby assumed by Grantee, subject to the obligations of Grantor and Grantee to readjust such proration between them when actual taxes for the year of this conveyance are known.
[END OF PAGE - SIGNATURE PAGE FOLLOWS]
Exhibit B-1 - Page 2 of 5
LAND SALE CONTRACT-341.3 ACRES IN HARRIS COUNTY, TX-XXXXX SPOILS TRACTS (EAST & WEST XXXXX PLACEMENT AREAS LLC & EQUITY RESOURCE PARTNERS-EAST WEST, LLC)
EXECUTED on the date of the acknowledgement set forth below, to be effective as of , 20 .
| GRANTOR: | ||||
| | ||||
| [ | ||||
| (Company/Entity Name) | ||||
| | ||||
| By: | | |||
| | | |||
| Name: | | |||
| | | |||
| Title: | ] | |||
| | ||||
| | ||||
THE STATE OF | | § | | ||
| | § | | ||
COUNTY OF | | § | | ||
| | ||||
| | ||||
This instrument was acknowledged before me on the day of , 20 , by , the of , a , on behalf of said .
| | ||
| Notary Public in and for the | ||
| State of | | |
[seal] | | ||
| | ||
| Printed Name of Notary: | | |
| My Commission Expires: | | |
| | ||
Exhibit B-1 - Page 3 of 5
LAND SALE CONTRACT-341.3 ACRES IN HARRIS COUNTY, TX-XXXXX SPOILS TRACTS (EAST & WEST XXXXX PLACEMENT AREAS LLC & EQUITY RESOURCE PARTNERS-EAST WEST, LLC)
EXHIBIT “A”
TO SPECIAL WARRANTY DEED
LEGAL DESCRIPTION OF PROPERTY
Exhibit B-1 - Page 4 of 5
LAND SALE CONTRACT-341.3 ACRES IN HARRIS COUNTY, TX-XXXXX SPOILS TRACTS (EAST & WEST XXXXX PLACEMENT AREAS LLC & EQUITY RESOURCE PARTNERS-EAST WEST, LLC)
EXHIBIT “B”
TO SPECIAL WARRANTY DEED
PERMITTED EXCEPTIONS
AFTER RECORDING, RETURN To:
Exhibit B-1 - Page 5 of 5
LAND SALE CONTRACT-341.3 ACRES IN HARRIS COUNTY, TX-XXXXX SPOILS TRACTS (EAST & WEST XXXXX PLACEMENT AREAS LLC & EQUITY RESOURCE PARTNERS-EAST WEST, LLC)
EXHIBIT B-2
Approved Form of Bill of Sale & Assignment
XXXX OF SALE AND ASSIGNMENT AND ASSUMPTION AGREEMENT
THIS BILL OF SALE AND ASSIGNMENT AND ASSUMPTION AGREEMENT (the “Assignment”) is made and entered into as of this day of , 2023 (the “Closing Date”), by and between EAST AND WEST XXXXX PLACEMENT AREAS, LLC, a Texas limited liability company (“Seller”), and , a (“Buyer”).
RECITALS
X.Xxxxx and Seller are parties to a Land Sale Contract dated as of April , 2023 (the “Purchase Agreement”) relating to that certain real property described on Exhibit A which is attached hereto and incorporated herein by this reference (the “Property”).
X.Xx the Purchase Agreement, Xxxxxx has agreed to assign, sell and convey to Buyer, and Xxxxx has agreed to accept and assume, all of Seller’s right, title and interest in and to certain property and contract rights, intangibles and other matters more fully described as the “Intangibles” below.
AGREEMENT
NOW, THEREFORE, in consideration of the promises and conditions contained herein, the parties hereby agree as follows:
1.Effective as of the Closing Date, Seller hereby sells, conveys and assigns to Buyer, AS-IS and WHERE IS and WITH ALL FAULTS, without warranty as to quality, nature, effect, sufficiency, usefulness, current validity, suitability for any particular purposes or uses, or otherwise, all of its right, title and interest, if any, in and to the following (collectively, the “Intangibles”):
(a)to the extent transferable, all licenses, permits, certificates of occupancy and franchises issued by any federal, state, county or municipal authority relating to the use, maintenance or operation of the Property running to or in favor of Seller and pertaining to the Property or otherwise pertaining to the Property, EXCLUDING, HOWEVER, ALL ENVIRONMENTAL AND OTHER PERMITS IN FAVOR OF SELLER OR ITS AFFILIATES RELATING SOLELY TO OPERATION OF THE PROPERTY AS A DREDGE SPOILS DISPOSAL FACILITY (BUT NOT FURTHER OR OTHERWISE), BUT SPECIFICALLY INCLUDING ANY PERMITS RELATING TO STORMWATER, DRAINAGE, DISCHARGE OR OUTFALL;
(b)to the extent transferable, all rights, commitments, reservations, allocations, service agreements, operating agreements and maintenance agreements with respect to the provision of utility service to the Land, including, without limitation, potable water supply, sewage treatment capacity, sanitary sewer line capacity, storm sewer and drainage capacity, and gas, electric, and telephone service
(c)to the extent transferable, all unrecorded agreements entered into by Seller as listed on Exhibit B, attached hereto and incorporated herein by this reference (separately, the “Seller Unrecorded Agreements”);
(d)to the extent transferable, all warranties, guaranties, indemnities and claims (including, without limitation, for workmanship, materials and performance) and which exist or may hereafter exist from
Exhibit B-2 - Page 1 of 4
LAND SALE CONTRACT-341.3 ACRES IN HARRIS COUNTY, TX-XXXXX SPOILS TRACTS (EAST & WEST XXXXX PLACEMENT AREAS LLC & EQUITY RESOURCE PARTNERS-EAST WEST, LLC)
or against any contractor, subcontractor, manufacturer or supplier or laborer or other services relating to the Property; and
(e)to the extent transferrable, any escrows or deposits affecting the Property, including without limitation any escrows or deposits held by The Port of Houston Authority of Harris County, Texas (but specifically excluding the Xxxxxxx Money hereunder.
Effective as of the Closing Date, Buyer hereby assumes all liability and obligations of Seller under the Seller Unrecorded Agreements for the period from and after the Closing Date hereof.
2.If either party hereto fails to perform any obligation under this Assignment or if a dispute arises between the parties concerning the interpretation of any provision of this Assignment, and an action is filed, the prevailing party in any such action shall be entitled to recover, in addition to any other relief that may be granted, its court costs and reasonable attorneys’ fees and disbursements, including such incurred in connection with any appeal.
3.This Assignment may be signed in counterparts and all counterparts so executed shall constitute one contract, binding on all parties hereto, even though all parties are not signatories to the same counterpart.
4.This Assignment shall be binding on and inure to the benefit of the parties hereto, their heirs, executors, administrators, successors in interest and assigns.
5.This Assignment shall be governed by and construed in accordance with the laws of the State of Texas.
[Remainder of page intentionally blank - Signature pages follow]
Exhibit B-2 - Page 2 of 4
LAND SALE CONTRACT-341.3 ACRES IN HARRIS COUNTY, TX-XXXXX SPOILS TRACTS (EAST & WEST XXXXX PLACEMENT AREAS LLC & EQUITY RESOURCE PARTNERS-EAST WEST, LLC)
IN WITNESS WHEREOF, Xxxxxx and Xxxxx have executed this Assignment the day and year first above written.
SELLER:
EAST AND WEST XXXXX PLACEMENT AREAS,
LLC,
a Texas limited liability company
By: | | | |
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Exhibit B-2 - Page 3 of 4
LAND SALE CONTRACT-341.3 ACRES IN HARRIS COUNTY, TX-XXXXX SPOILS TRACTS (EAST & WEST XXXXX PLACEMENT AREAS LLC & EQUITY RESOURCE PARTNERS-EAST WEST, LLC)
BUYER: | | ||
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By: | | | |
Name; | | | |
Title: | | | |
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Exhibit B-2 - Page 4 of 4
LAND SALE CONTRACT-341.3 ACRES IN HARRIS COUNTY, TX-XXXXX SPOILS TRACTS (EAST & WEST XXXXX PLACEMENT AREAS LLC & EQUITY RESOURCE PARTNERS-EAST WEST, LLC)
EXHIBIT C
APPROXIMATE LOCATION OF LANDFILL
Exhibit C - Page 1 of 1
LAND SALE CONTRACT-341.3 ACRES IN HARRIS COUNTY, TX-XXXXX SPOILS TRACTS (EAST & WEST XXXXX PLACEMENT AREAS LLC & EQUITY RESOURCE PARTNERS-EAST WEST, LLC)
EXHIBIT D
INTENTIONALLY OMITTED
Exhibit D - Page 1 of 1
LAND SALE CONTRACT-341.3 ACRES IN HARRIS COUNTY, TX-XXXXX SPOILS TRACTS (EAST & WEST XXXXX PLACEMENT AREAS LLC & EQUITY RESOURCE PARTNERS-EAST WEST, LLC)
EXHIBIT E
INTENTIONALLY OMITTED
Exhibit E - Page 1 of 1
LAND SALE CONTRACT-341.3 ACRES IN HARRIS COUNTY, TX-XXXXX SPOILS TRACTS (EAST & WEST XXXXX PLACEMENT AREAS LLC & EQUITY RESOURCE PARTNERS-EAST WEST, LLC)
EXHIBIT F
Diagram of Approximate Land Area Intended to be Under
Industrial District Agreement discussions between Seller and the City of Houston
Exhibit F - Page 1 of 2
LAND SALE CONTRACT-341.3 ACRES IN HARRIS COUNTY, TX-XXXXX SPOILS TRACTS (EAST & WEST XXXXX PLACEMENT AREAS LLC & EQUITY RESOURCE PARTNERS-EAST WEST, LLC)
Exhibit F - Page 2 of 2
LAND SALE CONTRACT-341.3 ACRES IN HARRIS COUNTY, TX-XXXXX SPOILS TRACTS (EAST & WEST XXXXX PLACEMENT AREAS LLC & EQUITY RESOURCE PARTNERS-EAST WEST, LLC)
EXHIBIT G
DISCLOSURE NOTICE CONCERNING LEGAL AND ECONOMIC RISKS
OF PURCHASING COASTAL REAL PROPERTY NEAR A BEACH
PURSUANT TO TEXAS NATURAL RESOURCES CODE SECTION 61.025
RE: | PURCHASE AND SALE AGREEMENT (“CONTRACT”) BETWEEN EAST AND WEST XXXXX PLACEMENT AREAS, LLC, AS “SELLER,” AND EQUITY RESOURCE PARTNERS-EAST WEST, LLC, AS “PURCHASER,” CONCERNING THE REAL PROPERTY LOCATED AT: |
SEE ATTACHED LEGAL DESCRIPTION*
[*The “Property” is more particularly described on Exhibit A-1 to the Contract to which this Exhibit is attached and incorporated by reference.]
WARNING: THE FOLLOWING NOTICE OF POTENTIAL RISKS OF ECONOMIC LOSS TO YOU AS THE PURCHASER OF COASTAL REAL PROPERTY IS REQUIRED BY STATE LAW.
● READ THIS NOTICE CAREFULLY. DO NOT SIGN THIS CONTRACT UNTIL YOU FULLY UNDERSTAND THE RISKS YOU ARE ASSUMING.
● BY PURCHASING THIS PROPERTY, YOU MAY BE ASSUMING ECONOMIC RISKS OVER AND ABOVE THE RISKS INVOLVED IN PURCHASING INLAND REAL PROPERTY.
● IF YOU OWN A STRUCTURE LOCATED ON COASTAL REAL PROPERTY NEAR A GULF COAST BEACH, IT MAY COME TO BE LOCATED ON THE PUBLIC BEACH BECAUSE OF COASTAL EROSION AND STORM EVENTS.
● AS THE OWNER OF A STRUCTURE LOCATED ON THE PUBLIC BEACH, YOU COULD BE SUED BY THE STATE OF TEXAS AND ORDERED TO REMOVE THE STRUCTURE.
● THE COSTS OF REMOVING A STRUCTURE FROM THE PUBLIC BEACH AND ANY OTHER ECONOMIC LOSS INCURRED BECAUSE OF A REMOVAL ORDER WOULD BE SOLELY YOUR RESPONSIBILITY.
The real Property described in this Contract is (or may be) located seaward of the Gulf Intracoastal Waterway to its southernmost point and then seaward of the longitudinal line also known as 97 degrees, 12’, 19” which runs southerly to the international boundary from the intersection of the centerline of the Gulf Intracoastal Waterway and the Brownsville Ship Channel. If the Property is in close proximity to a beach fronting the Gulf of Mexico, the Purchaser is hereby advised that the public has acquired a right of use or easement to or over the area of any public beach by prescription, dedication, or presumption, or has retained a right by virtue of continuous right in the public since time immemorial, as recognized in law and custom.
The extreme seaward boundary of natural vegetation that spreads continuously inland customarily marks the landward boundary of the public easement. If there is no clearly marked natural vegetation line, the landward boundary of the easement is as provided by Sections 61.016 and 61.017, Natural Resources Code.
Much of the Gulf of Mexico coastline is eroding at rates of more than five feet per year. Erosion rates for all Texas Gulf property subject to the open beaches act are available from the Texas General Land Office.
Exhibit G - Page 1 of 2
LAND SALE CONTRACT-341.3 ACRES IN HARRIS COUNTY, TX-XXXXX SPOILS TRACTS (EAST & WEST XXXXX PLACEMENT AREAS LLC & EQUITY RESOURCE PARTNERS-EAST WEST, LLC)
State law prohibits any obstruction, barrier, restraint, or interference with the use of the public easement, including the placement of structures seaward of the landward boundary of the easement. OWNERS OF STRUCTURES ERECTED SEAWARD OF THE VEGETATION LINE (OR OTHER APPLICABLE EASEMENT BOUNDARY) OR THAT BECOME SEAWARD OF THE VEGETATION LINE AS A RESULT OF PROCESSES SUCH AS SHORELINE EROSION ARE SUBJECT TO A LAWSUIT BY THE STATE OF TEXAS TO REMOVE THE STRUCTURES.
The Purchaser is hereby notified that the Purchaser should:
(1)determine the rate of shoreline erosion in the vicinity of the real Property; and
(2)seek the advice of an attorney or other qualified person before executing this Contract or instrument of conveyance as to the relevance of these statutes and facts to the value of the Property the Purchaser is hereby purchasing or contracting to purchase.
PURCHASER:
EQUITY RESOURCE PARTNERS-EAST WEST, LLC
By: | Southwood Development Company, LLC, Manager | |
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By: | /s/ X. Xxx Xxxxxxxx | |
| X. Xxx Xxxxxxxx, Manager | |
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SELLER: | | |
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EAST AND WEST XXXXX PLACEMENT AREAS, LLC | | |
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By: | /s/ XXXXXX XXXXX | |
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Name: | XXXXXX XXXXX | |
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Title: | PRESIDENT & CEO | |
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Exhibit G - Page 2 of 2
LAND SALE CONTRACT-341.3 ACRES IN HARRIS COUNTY, TX-XXXXX SPOILS TRACTS (EAST & WEST XXXXX PLACEMENT AREAS LLC & EQUITY RESOURCE PARTNERS-EAST WEST, LLC)
EXHIBIT H
NOTICE REGARDING COASTAL AREA PROPERTY
PURSUANT TO TEXAS NATURAL RESOURCES CODE SECTION 33.135
RE: | PURCHASE AND SALE AGREEMENT (“CONTRACT”) BETWEEN EAST AND WEST XXXXX PLACEMENT AREAS, LLC, AS “SELLER,” AND EQUITY RESOURCE PARTNERS-EAST WEST, LLC, AS “PURCHASER,” CONCERNING THE REAL PROPERTY LOCATED AT: |
SEE ATTACHED EXHIBIT A LEGAL DESCRIPTION*
[*The “Property” is more particularly described on Exhibit A-1 to the Contract to which this Exhibit is attached and incorporated by reference.]
| 1. | The real Property described in and subject to this Contract adjoins and shares a common boundary with the tidally influenced submerged lands of the state. The boundary is subject to change and can be determined accurately only by a survey on the ground made by a licensed state land surveyor in accordance with the original grant from the sovereign. The owner of the Property described in this Contract may gain or lose portions of the tract because of changes in the boundary. |
| 2. | The seller, transferor, or grantor has no knowledge of any prior fill as it relates to the Property described in and subject to this Contract except: fill with dredge spoils as part of Seller’s (and previous owners’) dredge spoils disposal/placement business. |
| 3. | State law prohibits the use, encumbrance, construction, or placing of any structure in, on, or over state-owned submerged lands below the applicable tide line, without proper permission. |
| 4. | The Purchaser or grantee is hereby advised to seek the advice of an attorney or other qualified person as to the legal nature and effect of the facts set forth in this notice on the Property described in and subject to this Contract. Information regarding the location of the applicable tide line as to the Property described in and subject to this Contract may be obtained from the surveying division of the General Land Office in Austin. |
PURCHASER: | | |
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EQUITY RESOURCE PARTNERS-EAST WEST, LLC | | |
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By: | Southwood Development Company, LLC, Manager | |
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By: | /s/ X. Xxx Xxxxxxxx | |
| X. Xxx Xxxxxxxx, Manager | |
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SELLER: | | |
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EAST AND WEST XXXXX PLACEMENT AREAS, LLC | | |
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By: | /s/ XXXXXX XXXXX | |
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Name: | XXXXXX XXXXX | |
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Title: | PRESIDENT & CEO | |
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Exhibit H - Page 1 of 1
LAND SALE CONTRACT-341.3 ACRES IN HARRIS COUNTY, TX-XXXXX SPOILS TRACTS (EAST & WEST XXXXX PLACEMENT AREAS LLC & EQUITY RESOURCE PARTNERS-EAST WEST, LLC)
EXHIBIT I
PRE-APPROVED INSPECTIONS
DRAFT
East & West Xxxxx Dredged Material Placement Areas
Soil Boring & Temporary Groundwater Monitoring Well
Sampling Work Plan
Prepared by:
Xxxxxxxx Environmental Group
000 Xxxxx Xxxx Xxxxxx, Xxxxx 0
Round Rock, TX78664
Date
March 29, 2023
Exhibit I - Page 1 of 7
LAND SALE CONTRACT-341.3 ACRES IN HARRIS COUNTY, TX-XXXXX SPOILS TRACTS (EAST & WEST XXXXX PLACEMENT AREAS LLC & EQUITY RESOURCE PARTNERS-EAST WEST, LLC)
CONTENTS | ||
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| 1.0 INTRODUCTION | 1 |
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| 2.0 FIELD SAMPLING METHODOLOGY | 1 |
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| 2.1 Proposed Soil Boring & Temporary Monitoring Well Installation Activities | 1 |
| 2.2 Proposed Soil Boring & Temporary Monitoring Well Sample Locations | 2 |
| 2.3 Soil & Groundwater Sample Collection, Handling, and Analysis | 2 |
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| 3.0 REPORTING AND SCHEDULE | 3 |
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| 3.1 Reporting | 3 |
| 3.2 Schedule | 3 |
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FIGURES | | |
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Figure 1: | Site Map | |
Figure 2: | Proposed Soil Boring & Temporary Monitoring Well Installation Locations | |
Exhibit I - Page 2 of 7
LAND SALE CONTRACT-341.3 ACRES IN HARRIS COUNTY, TX-XXXXX SPOILS TRACTS (EAST & WEST XXXXX PLACEMENT AREAS LLC & EQUITY RESOURCE PARTNERS-EAST WEST, LLC)
1.0 INTRODUCTION
This work plan has been prepared by Xxxxxxxx Environmental Group (EEG) and presents a Soil Boring & Temporary Groundwater Monitoring Well Sampling Work Plan for the East & West Xxxxx Dredged Material Placement Areas (Site) located in Pasadena, Texas (see Figure 1). The Site is a 341-acre property located along the Houston Ship Channel and is approximately 2.5 miles south of the Xxx Houston Tollway. The Site formerly operated as a dredge materials placement area for the nearby Houston Ship Channel.
Based on previously conducted environmental investigations and the historical use of the property, additional environmental sampling is recommended to determine if potential on-site soil and groundwater contamination is present. EEG first recommends the completion of a Phase I Environmental Site Assessment (ESA) to obtain a more thorough historical overview of the Site. Following the Phase I ESA, EEG recommends completing an investigation to determine the nature of potential on-site soil and groundwater contamination. Specifically, EEG recommends the advancement of up to twenty-two (22) soil borings with eleven (11) of those soil borings converted into temporary monitoring xxxxx to be utilized for groundwater sampling.
2.0 FIELD SAMPLING METHODOLOGY
The following sections discuss the sample locations, sample collection duration, and analytical methods associated with this investigation.
2.1 Proposed Soil Boring & Temporary Groundwater Monitoring Well Installation Activities
EEG will subcontract a State of Texas licensed driller to advance up to twenty-two (22) soil borings with eleven (11) of those borings converted to 2-inch temporary monitoring xxxxx to be utilized for groundwater sampling. Soil samples will be collected continuously and observed to document soil lithology, color, moisture content and field-screened using a photoionization detector (PID) to indicate the presence of VOCs. Detailed lithologic descriptions will be presented on sealed soil boring logs. Three soil samples will be collected from each soil boring at the following locations: 1) the surface soils (0-2 feet bgs), 2) 4-5 bgs, and 3) the highest PID screening point detected or observed stained soils within the soil boring. It is anticipated that each boring will be drilled to approximately fifty (50) feet below the surface, however, borings may be drilled deeper to determine the presence of potential groundwater bearing units and native soil depths at certain locations. Up to seventy (70) soil samples, including duplicates, will be collected for analysis.
Based on past reports, perched groundwater is expected to be encountered at depths ranging from 4-25’ bgs, however, due to the heterogenous topography of the Site, the final depth of the temporary monitoring xxxxx may be deeper. All temporary monitoring xxxxx will be constructed of 2-inch nominal diameter Schedule 40 PVC and 0.010-inch slot screen. Each temporary monitoring xxxxx will be developed using a pump to a minimum of three well volumes or stabilization of water quality indicator parameters of pH, oxidation-reduction potential (ORP), specific conductivity, dissolved oxygen, and turbidity in order to remove fines from the well and filter pack. If well development is possible, groundwater sampling will
Exhibit I - Page 3 of 7
LAND SALE CONTRACT-341.3 ACRES IN HARRIS COUNTY, TX-XXXXX SPOILS TRACTS (EAST & WEST XXXXX PLACEMENT AREAS LLC & EQUITY RESOURCE PARTNERS-EAST WEST, LLC)
not occur within 24 hours after development completion. Twelve (12) groundwater samples, including one duplicate will be collected for analysis.
Soil cuttings generated will be placed in labeled 55-gallon steel drum(s) for characterization and future disposal. Decontamination water generated will be temporarily placed in a 55-gallon steel drum, and then properly disposed.
2.2 Proposed Soil Boring & Temporary Monitoring Well Sample Locations
The locations of the 22 proposed soil boring/temporary groundwater monitoring xxxxx are depicted in Figure 2. Soil boring locations will be based on a review of historical aerial photographs & documents, and findings obtained from previously completed environmental assessments including the recommended Phase I ESA. The proposed soil boring locations are subject to change based on Site conditions.
2.3 Soil & Groundwater Sample Collection, Handling, and Analysis
Samples will be collected using clean nitrile gloves and placed into laboratory-provided containers with minimal headspace, placed on ice, and delivered under chain-of-custody to the environmental laboratory for analyses. Drilling equipment will be cleaned using a high-pressure washer prior to beginning the project and before beginning each well location. Any non-dedicated sampling equipment will be cleaned using an Alconox wash and distilled water rinse prior to the beginning of the project and before each soil boring/temporary monitoring well location.
Groundwater xxxxx will be purged, and samples will be collected using a pump in accordance with low-flow sampling procedures. Purging will be accomplished in such a way as to minimize disturbance of sediments at the bottom of the well, and therefore minimize turbidity of the water samples. Typically, this is accomplished by purging at a low flow rate (less than one liter per minute) with the pump intake near the middle of the screened interval.
Soil samples will be collected and analyzed for RCRA-8 metals by EPA Method 6010/7470, VOCs by EPA Method 5035/8260, TPH by Texas Method 1005/1006, Polychlorinated Biphenyls (PCBs) by EPA Method 8082, Pesticides/Herbicides by EPA Methods 8081 & 8151, and Dioxins/Furans by EPA Method 8290. If analytical results indicate elevated levels of TPH, affected soil samples will also be analyzed for SVOCs by EPA Method 8270. Additionally, pH and Fractional Organic Carbon (FOC) data will be collected at five selected soil sample locations.
Groundwater samples will be collected and analyzed for RCRA-8 metals using EPA Method 6010/7470, VOCs by EPA Method 8260, TPH by Texas Method 1005, SVOCs by EPA Method 8270, PCBs by Method 8082, Pesticides/Herbicides by EPA Methods 8081 & 8151, Dioxins/Furans by EPA Method 8290. Five groundwater samples will be analyzed for Total Dissolved Solids (TDS) by EPA Method 2540 and for Chloride by EPA Method 9056. All laboratory analysis will be performed at a standard turnaround time (5 to 7 business days).
3.0 REPORTING AND SCHEDULE
Exhibit I - Page 4 of 7
LAND SALE CONTRACT-341.3 ACRES IN HARRIS COUNTY, TX-XXXXX SPOILS TRACTS (EAST & WEST XXXXX PLACEMENT AREAS LLC & EQUITY RESOURCE PARTNERS-EAST WEST, LLC)
3.1 Reporting
The investigation findings will be presented in a Sampling and Analysis Report. The report will include a discussion of field sampling activities and sample results, laboratory analytical reports, figures, and tabular summaries of the analytical results from this investigation. Prior to submission of the final analytical results, the analytical results will be validated, and the data usability report will be included in the report. The report will also document variances from the sampling plan, exceedances of action levels and recommendations for follow-up work, if necessary.
3.2 Schedule
The Sampling and Analysis Report will be prepared and submitted within 60 days of the receipt of the analytical results.
Exhibit I - Page 5 of 7
LAND SALE CONTRACT-341.3 ACRES IN HARRIS COUNTY, TX-XXXXX SPOILS TRACTS (EAST & WEST XXXXX PLACEMENT AREAS LLC & EQUITY RESOURCE PARTNERS-EAST WEST, LLC)
Exhibit I - Page 6 of 7
LAND SALE CONTRACT-341.3 ACRES IN HARRIS COUNTY, TX-XXXXX SPOILS TRACTS (EAST & WEST XXXXX PLACEMENT AREAS LLC & EQUITY RESOURCE PARTNERS-EAST WEST, LLC)
Exhibit I - Page 7 of 7
LAND SALE CONTRACT-341.3 ACRES IN HARRIS COUNTY, TX-XXXXX SPOILS TRACTS (EAST & WEST XXXXX PLACEMENT AREAS LLC & EQUITY RESOURCE PARTNERS-EAST WEST, LLC)
EXHIBIT J
Map of Avoidance Areas
Avoidance areas for purposes of this Contract are all areas of the Property OUTSIDE of the areas outlined in green on the below aerial map:
Exhibit J - Page 1 of 1
LAND SALE CONTRACT-341.3 ACRES IN HARRIS COUNTY, TX-XXXXX SPOILS TRACTS (EAST & WEST XXXXX PLACEMENT AREAS LLC & EQUITY RESOURCE PARTNERS-EAST WEST, LLC)
