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ST0102-CN021205REAL ESTATE PURCHASE AGREEMENT ,T[-IIS REAL E~TATE PURCHASE AGREE,,,ME,,NT (this Agreement ) is executed as of the O___-- day of~ 2002 (the "Agreement Date ), by the CITY OF COPPELL, TEXAS, a Home Rule City ("Seller"), and TEXAS DUGAN LIMITED PARTNERSHIP, a Delaware limited partnership ("Buyer"), who acknowledge that the following facts are true: A. Seller is the owner in fee simple of certain real estate located in Coppell, Dallas County, Texas, the first such parcel containing approximately 1.281 acres and more particularly shown and described on Exhibit A-I attached hereto and incorporated herein by reference ("Parcel One"), and the second such parcel containing approximately 1.033 acres and more particularly shown and described on Exhibit A-2 attached hereto and incorporated herein by reference ("Parcel Two"), together with all of Seller's right, title and interest in and to all easements, utility reservations, fights of way, strips and gores of land, mineral rights, water and water rights, wells, well fights and permits, water and sewer taps, sanitary or storm sewer capacity or reservations, fights under utility agreements with any applicable governmental or quasi-governmental entities or agencies with respect to the providing of utility services to such real property, tenements, hereditaments, privileges, licenses and appurtenances, reversions and remainders in any way belonging, remaining or appertaining thereto and together with all improvements, fixtures, personal property, trees, timber, or other crops and plants and minerals located thereunder or thereon (collectively, the "Property"); and B. Buyer desires to purchase, and Seller desires to sell the Property. AND, in consideration of the mutual covenants hereinafter contained, Seller and Buyer agree as follows: 1. Purchase and Sale. Seller agrees to sell, and Buyer agrees to purchase the Property for the price and subject to the terms and conditions hereinafter set forth. 2. Purchase Price. The purchase price for the Property (hereinafter called the "Purchase Price") shall be Two Hundred and Fifty-three Thousand and No/100 Dollars ($253,000.00). The Purchase Price shall be paid by Buyer to Seller on the Closing Date after crediting the Earnest Money, hereinafter defined, and subject to the prorations and adjustments hereinafter described, by a certified or Federal Reserve check, or in funds immediately available in Dallas, Texas on the Closing Date. The Purchase Price shall be paid by Buyer to Seller on the Closing Date after crediting the Earnest Money (hereinafter defined), and subject to the prorations and adjustments hereinafter described, by a certified or Federal Reserve check, or otherwise in funds immediately negotiable in on the Closing Date. Contemporaneously with the execution of this Agreement, Buyer has delivered to Seller the sum of Fifty and No/100 Dollars ($50.00) (the "Independent Contract Consideration"), which amount the parties bargained for and agreed to as consideration for Seller's execution and delivery of this Agreement and the right granted to Buyer to purchase the Property upon and subject to the terms and conditions of this Agreement. The Independent Contract Consideration is in addition to and independent of any other consideration or payment provided in this Agreement, is non-refundable and shall be retained by Seller f:\dallas construction\development services\projects\freeport north @ freeport parkwayXruby road realignment\city issues and agreements\purchase agreement\contractS--final.doc notwithstanding any other provision of this Agreement. Seller hereby acknowledges receipt of the Independent Contract Consideration. 3. Payment of Purchase Price. The Purchase Price shall be paid to Seller as follows: (a) Within five (5) business days from execution of this Agreement by both Buyer and Seller, Buyer shall Earnest Money with Allegiance Title Company ("Escrow Agent"), whose office is located at 2100 McKinney Avenue, Suite 1200, Dallas Texas 75201, Attn: Ms. Kerri Majors, an earnest money Earnest Money in the amount of One Thousand and No/100 Dollars ($1,000.00) (the "Earnest Money"). Such Earnest Money shall be held, applied, returned or retained in accordance with the terms of this Agreement and the terms of the Escrow Agreement, which is attached hereto as Exhibit B and incorporated herein by reference. The Earnest Money shall be invested by Escrow Agent as directed by Buyer, and all interest on the Earnest Money shall be applied to the Purchase Price, or if the Closing (as defined in paragraph 10 hereof) does not occur, credited to the party to receive the Earnest Money pursuant to the terms hereof. If Buyer shall fail or refuse to perform its obligations herein specified after all conditions in this Agreement have been satisfied, Escrow Agent shall pay the Earnest Money to Seller as liquidated damages and Seller waives any claim for damages, at law or in equity, and waives any claim for specific performance and agrees that such liquidated damages shall be Seller's sole remedy at law or in equity. (b) The remainder of the Purchase Price, plus or minus any prorations and adjustments made pursuant to this Agreement, shall be paid by Buyer in cash, certified check, wire transfer or other immediately available funds at the Closing. 4. Conditions. The Buyer's obligations under this Agreement are subject to the satisfaction (or waiver in writing by Buyer) of the conditions in this Paragraph 4 by Closing (hereinafter defined). At any time after the Agreement Date, Buyer and its agents shall have the right to (and Seller hereby grants permission to Buyer to) enter upon the Property and make all engineering, soil boring, percolation and other tests and inspections deemed necessary by Buyer to satisfy Buyer as to the condition of the Property; provided, however, that Buyer shall restore any damage to the Property resulting from the entry of Buyer or its agents, and Buyer shall indemnify and hold Seller harmless from and against any liability with respect to personal injury or property damage resulting from the right of access provided herein). All such tests shall be at Buyer's cost and expense. If for any reason whatsoever Buyer determines, in Buyer's sole discretion, that the Property is not satisfactory, then Buyer may terminate this Agreement by delivering written notice of such termination to Seller on or before the Closing Date. In the event Buyer gives such termination notice as provided herein, the Earnest Money (less $100 to be paid to Seller) shall be returned to Buyer and neither party hereunder shall have any further rights, liabilities, or obligations, hereunder, except for those matters contained herein which expressly survive termination of this Agreement. (a) Status of Title. Buyer shall have received the Title Commitment and Survey, as each is hereinafter defined, in the condition and as required under Paragraphs 5 and 6 of this Agreement. (b) Zoning and Subdivision Approvals. Buyer shall have determined, in its sole discretion, that the Property is suitably zoned to a zoning classification compatible for development of the Property as a truck court and parking lot (hereinafter referred to as "Buyer's Use") with all necessary classifications, variances, permissions, exceptions, conditional uses, plat and other approvals required for Buyer's Use having been obtained from all applicable governmental agencies and such approvals being final, nonappealable and in full force and effect. (c) Utilities. Buyer shall have determined, in its sole discretion, that utilities, including, but not limited to, gas, electricity, water, sanitary sewer, storm sewer and telephone utilities, shall be available at the Property or at such distances from the Property as are satisfactory to Buyer and shall be available for connection and extension to the Property at such distances, in such quantities and at such costs as are satisfactory to Buyer. (d) Access. Buyer shall have determined, in its sole discretion, that the Property has free, unrestricted and direct legal rights of access and ingress and egress to one or more public roads or highways. (e) Permits. Buyer shall have determined, in its sole discretion, that all permits, consents, approvals and other things required or desired by Buyer to be obtained from all federal, state and local governmental, municipal, public and other authorities, bodies and agencies, and those required by any design review board established pursuant to any declaration which may encumber the Property (collectively "Approvals"), to permit Buyer to use the Property for Buyer's Use shall have been obtained. (f) Soil Conditions. Buyer shall have determined, in its sole discretion, that the surface water drainage and soil conditions, qualities, density and bearing capacity of the Property are suitable for Buyer's Use without the necessity of any extraordinary filling or compaction or any other extraordinary engineering or construction measures or expenditures which, in the opinion of Buyer, would impair the feasibility of the use, development and improvement of the Property. (g) Environmental Condition. Buyer shall have determined, in its sole discretion, that (a) the Property is not contaminated with any toxic waste or hazardous substance; (b) the Property contains no asbestos or PCB's; (c) the Property does not appear on any state or federal CERCLA (Comprehensive Environment Responsibility Compensation and Liability Act or Superfund) list; (d) the Property contains no underground storage tanks; and (e) the Property is not located in any area of special flood hazard, as designated by the United States Department of Housing and Urban Development or the Federal Emergency Management Agency, or in any flood plain, floodway or other flood control district designated by any federal, state or local governmental municipal, public or other authority, body or agency. (h) Restrictions on Development. Buyer shall have determined, in its sole discretion, that there are no federal, state or local laws, ordinances, rules, regulations, codes or orders and no covenants or restrictions affecting or running with the Property which would, in Buyer's sole judgment, prohibit, prevent, delay, interfere with or impair the feasibility of Buyer's use, development or improvement of the Property for Buyer's Use; and in Buyer's sole judgment, there are no claims, demands, actions or proceedings pending or threatened against Seller or the Property before any court or governmental authority, body or agency (including, without limitation, condemnation or eminent domain proceedings) which would so prevent, prohibit, delay, interfere with or impair the feasibility of Buyer's development of the Property for Buyer's Use. (i) Improvements. Buyer shall have determined that all improvements, if any, on the Property are located entirely within the bounds thereof, and that there are no encroachments upon the Property by improvements or appurtenances on property adjoining the Property; and Buyer shall have determined that there are no existing violations of zoning ordinances or other laws, ordinances, restrictions or covenants applicable to the Property. (j) Approvals. Buyer and Seller shall have received all requisite approvals necessary to complete the sale and purchase of the Property. 5. Seller's Title. (a) Seller shall convey good, marketable and insurable fee simple title to the Property to Buyer, free and clear of all liens and encumbrances. Buyer shall cause, at Buyer's expense, Escrow Agent to deliver to Buyer a commitment for an owner's policy of title insurance (the "Title Commitment") issued by a title insurance company satisfactory to Buyer on ALTA Owner's Policy Form B-1970, if available (otherwise in a form acceptable to Buyer), and in which to give Seller written notice of any objections which Buyer may have. If Buyer fails to give any notice to Seller by such date, Buyer shall be deemed to have waived such right to object to any title exceptions or defects. (b) If Buyer does give Seller timely notice of objection, Seller shall have seven (7) days from the date of receipt of notice of objections in which to review Buyer's notice of title objections, and, if Seller elects, in which to give Buyer written notice of any objections specified therein which Seller does not intend to satisfy. If Seller gives Buyer such written notice with respect to any objection specified in Buyer's initial notice of title objections, then Buyer shall have the right, at Buyer's option, to terminate this Agreement by giving written notice to Seller within ten (10) days thereafter, in which event the Earnest Money (less $100 to be paid to Seller) shall be refunded to Buyer promptly upon request, all rights and obligations of the parties hereunder shall expire and this Agreement shall become null and void, except with respect to any obligations hereunder that expressly survive any such termination. If Buyer fails so to terminate this Agreement within the time limit specified above, Buyer shall be deemed to have waived any objection specified in Buyer's notice of title objections as to which Seller has given Buyer such notice. (c) Seller shall have until the Closing Date to satisfy all objections other than those waived by Buyer pursuant to subparagraphs (a) and (b) above and, if Seller fails to satisfy any objections which it has expressly agreed to satisfy, then, at the option of Buyer, Buyer may: (i) terminate this Agreement, in which event the Earnest Money shall be refunded to Buyer promptly upon request, all rights and obligations of the parties hereunder shall expire and this Agreement shall become null and void, except with respect to any provisions that expressly survive termination; (ii) waive such satisfaction and performance and elect to close, and all objections so waived shall thereafter constitute Permitted Exceptions under this Agreement; or (iii) extend the Closing Date for a period of up to ninety (90) days, during which time Seller shall cure such title objections. Buyer shall have the right to object to any change in title occurring after the effective date of the Title Commitment and prior to the Closing Date, and if Seller cannot or will not cure or satisfy any such objection by the Closing Date, Buyer may exercise the option set forth in clause (i), (ii) or (iii) above. The Closing Date shall be automatically extended to allow all time periods in this subparagraph (c) to run fully. (d) Notwithstanding any other provision of this Agreement to the contrary, Seller shall, prior to the Closing Date, satisfy, cure or cause to be released (or bonded off of the Property at Seller's election) (i) all materialmen's and mechanic's liens affecting the Property and arising out of work done for or on behalf of Seller, and (ii) any judgment lien against Seller which attaches to the Property prior to the Closing Date (if any). Seller's failure to satisfy the specific items listed in the previous sentence shall be an event of default by Seller under Paragraph 26 of this Agreement with respect to which Buyer shall be entitled to (A) pursue its remedies under Paragraph 26 or (B) close the sale of the Property contemplated herein and accept the Property subject to such items after reducing the Purchase Price by the amount of such uncured items. (e) Seller hereby covenants that it shall not voluntarily transfer, sell, assign, encumber, lease, hypothecate or otherwise dispose of any or all of its right, title and interest in and to the Property nor consent to the creation of any easement affecting the Property, during the existence of this Agreement, without the prior consent of Buyer. 6. Survey. Buyer may elect to cause, at Buyer's expense, a staked boundary survey of the Property (the "Survey") prepared by a registered land surveyor satisfactory to Buyer. Any matters shown on the Survey and objected to by Buyer on or before the Closing Date shall be additional title objections, as to which the fights and obligations of Buyer and Seller shall be the same as provided in Paragraph 5 above. 7. Cooperation of Seller. Seller shall assist Buyer and its representatives, whenever reasonably requested by Buyer, in obtaining information about the Property. 8. Taxes and Assessments. Buyer will assume and agree to pay (a) all assessments for municipal improvements becoming a lien against the Property after the Closing and (b) so much of the real estate taxes and assessments assessed against the Property for and becoming a lien during the calendar year in which such Closing occurs as shall be allocable to Buyer for the period on and after the Closing. Notwithstanding anything to the contrary herein, the parties agree that Seller shall be responsible for and shall assume any and all "rollback" or similar taxes or assessments applicable to the Property for the period prior to the Closing Date. At Closing, Seller shall either (i) deposit with Escrow Agent a sum equal to the "rollback" assessment which would become assessable at Closing, if, hypothetically, the use of all of the Property changed on the date of Closing to a use not qualifying for "open space" or "agricultural" status or (ii) credit Buyer at Closing an amount equivalent to said rollback assessment. In the event Seller shall choose option (i) above, Seller, Buyer and Escrow Agent shall enter into an Escrow Agreement at Closing providing that the amount of the rollback taxes shall be deposited into an interest- bearing account, with interest payable to Seller, with such escrow deposit to be utilized by Buyer to satisfy the assessment and payment of "rollback" assessments against the Property. The provisions of this Section shall expressly survive the Closing and shall not be merged therein. 9. Conditions to Closing. Buyer's obligations to close on the purchase and sale of the Property are expressly contingent on the fulfillment of the following conditions (the "Conditions") on or before the Closing Date (hereinafter defined): (a) Seller shall approve construction plans (the "Ruby Road Construction Plans") prepared by Pacheco Koch Consulting Engineers, Inc., for the realignment and reconstruction of Ruby Road between Freeport Parkway and Coppell Road by November 1, 2002. (b) Seller shall, by November 12, 2002, present a contract for award to the Coppell City Council for the realignment and reconstruction of Ruby Road (the "Ruby Road Construction Contract") as depicted in the Ruby Road Construction Plans. Working days shall commence twenty (20) days after approval of the award by the City Council. (c) All pavement and any existing utilities, including, but not limited to, electric and telephone facilities and equipment shall have been removed and relocated from Parcel One and Parcel Two to Buyer's satisfaction and at no expense to Buyer prior to the Closing Date. (d) The Coppell City Council shall abandon that portion of the existing Ruby Road right-of- way located within Parcel Two prior to the Closing Date. As used herein, "abandon" shall mean approval by the appropriate governmental authority or other entity having jurisdiction and the expiration of any period for appeal or reconsideration, without appeal, reconsideration or application therefore having been made, or in the event of any such appeal or reconsideration, approval upon such appeal or reconsideration. (e) The Coppell City Council shall have approved this Agreement for the purchase and sale of the Property on or before November 12, 2002. (f) The work depicted on the Ruby Road Construction Plans shall be completed no later than July 7, 2003. 10. Closing. In the event the conditions contained in Paragraphs 4 and 9 hereof have been met, the closing of the purchase and sale of the Property (the "Closing") shall occur in escrow at the office of Escrow Agent or another location selected by both Seller and Buyer on a date (the "Closing Date") which is ten (10) days following fulfillment of the Conditions set forth in subparagraphs 9(a) - (e) above; provided, however, in no event shall Closing occur later than March 7, 2003. 11. Closing Documents and Closing Costs. At the Closing, Seller shall execute and deliver to Buyer (a) a special warranty deed (the "Deed") conveying the Property to Buyer free and clear of all liens and encumbrances except such as have been approved in writing by Buyer, (b) a Vendor's Affidavit in a form satisfactory to the Buyer and the title insurer, (c) a Certification of Non-Foreign Status pursuant to Section 1445(b)(2) of the Internal Revenue Code, (d)a Closing Statement, and (e)such other instruments, certificates or affidavits as may be provided herein or as Buyer or the title insurer may require to close this transaction in accordance with the terms and conditions set forth in this Agreement. Buyer shall pay the cost of the title policy and any title insurance endorsements, one-half (1/2) of any escrow or closing agent charges, all costs associated with any encumbrance Buyer places on the Property at Closing, the cost of the Survey, the cost of preparation of any plat relative to the incorporation of the Property from into the adjacent tract owned by Buyer, and all costs of Buyer's due diligence. Seller shall pay for recording the Deed, and one-half (1/2) of any escrow or closing agent charges. Each party shall pay its own attorneys. The obligations of the parties to pay applicable escrow or closing charges shall survive the termination of this Agreement. 12. Possession. Possession of the Property shall be delivered to Buyer on the Closing Date free and clear of the claims of any other party. 13. Rights and Obligations. The rights and obligations of Seller and Buyer herein contained shall inure to the benefit of and be binding upon the parties hereto and their respective personal representatives, heirs, successors and assigns. 14. Notices. Any notices, requests, demands, tenders and communications hereunder shall be in writing and may be served (i) by depositing same in the United States mail, addressed to the party to be notified, postage prepaid and registered or certified with return receipt requested; (ii) by recognized overnight, third party prepaid courier service (such as Federal Express), requiring signed receipt; (iii) by delivering the same in person to such party; or (iv) by prepaid telegram, telecopy or telex with confirmation thereof. Any notice or other communication mailed as bereinabove provided shall be deemed effectively given (a) on the date mailed if sent by overnight express delivery or if sent by U.S. mail; (b) on the date of delivery, if delivered by hand; or (c) on the date of transmission, if sent by electronic transfer device with a follow-up by regular mail. Such notices shall be deemed received (a) on the date indicated on the return receipt if mailed; (b) on the date of delivery, if delivered by hand or overnight express delivery service; or (c) on the date of transmission, if sent by electronic transfer device. If any notice mailed is properly addressed but returned for any reason, such notice shall be deemed to be effective notice and to be given on the date of mailing. Any notice mailed in the foregoing manner shall be effective three (3) business days after its Earnest Money in the United States mail. Either party may change its address for notices by giving notice to the other as provided below. The address for notices is: Seller: City of Coppell, Texas 255 Parkway Boulevard Coppell, Texas 75019 Attn: City Manager Fax: (972) 304-3673 With copies to: City of Coppell, Texas 255 Parkway Boulevard Coppell, Texas 75019 Attn: City Engineer Fax: (972) 304-7041 Robert E. Hager, Esq. City Attorney 1800 Lincoln Plaza 500 N. Akard Dallas, Texas 75201 Fax: (214) 965-9900 Buyer: Texas Dugan Limited Partnership c/o Duke Realty Corporation 5495 Belt Line Road, Suite 360 Dallas, Texas 75240 Attn: Mr. Jeff Turner & Mr. Brook Barefoot Fax: (972) 687-0007 Copy to: Ann K. Friesen, Esq. Duke Realty Corporation 3950 Shacldeford Road, Suite 300 Duluth, Georgia 30096-8268 Fax: (770) 717-2431 Such notices shall be deemed received (a) on the date of delivery, if delivered by hand or overnight express delivery service; (b) on the date indicated on the retum receipt if mailed; or (c) on the date of facsimile, if sent by facsimile and confirmed. 15. Intentionally Omitted. 16. that: Further Representations and Warranties of Seller. Seller hereby represents and warrants (a) Seller has full power and authority to enter into and consummate the transaction contemplated by this Agreement, and all consents and approvals necessary therefor have been obtained. (b) The execution, delivery and performance by Seller of its obligations under this Agreement will not conflict with or result in a breach of, or constitute a default under, any of the provisions of any law, governmental rule, regulations, judgment, decree or order by which the Seller is bound, or by any of the provisions of any contract to which the Seller is bound, or, if Seller is not an individual, by the Seller's declaration of trust, certificate of incorporation, bylaws or partnership agreement, as the case may be. (c) Seller has, as of the Agreement Date, and will have as of the date of the Closing, good, marketable and indefeasible title to the Property, subject only to the Permitted Exceptions. (d) Seller has not received any notice of pending or threatened claims, condemnations, planned public improvements, annexation, special assessments, rezoning or other adverse claims affecting the Property. (e) There are no liens, leases, rights of possession, or other encumbrances against the Property which will not be terminated at or prior to Closing. (f) All necessary rights-of-way for all roads referenced on the Survey to be obtained by Buyer have been either acquired by Seller or have been dedicated to public use and accepted by the appropriate governmental authority for public use and maintenance. The Property has immediate, direct, and unrestricted access to Ruby Road. (g) Water, electricity, sanitary sewer, underground storm sewer, gas and telephone services are available for connection on the Property and in sufficient capacities to serve Buyer's Use. (h) On the Closing Date, Seller will not be indebted to any contractor, laborer, mechanic, materialman, architect or engineer for work, labor or services performed or rendered, or for materials supplied or furnished, in connection with the Property for which any such person could claim a lien against the Property. (i) There are no covenants, agreements, restrictions or other arrangements or understandings (whether in writing or of record) respecting the Seller, the Property or the use or possession of the Property which would require payment by Buyer to any person, owners' association or other entity of or for shared easements, improvements, utilities or services; provided, however, in the event any such covenant, agreement, restriction or other arrangement or understanding exists and has been approved in writing by Buyer, Seller shall pay at or prior to closing all amounts accruing or becoming due and payable on or prior to Closing, and any regular periodic payments thereunder accruing in the year of Closing shall be prorated to the date of Closing. (j) Seller will pay or cause to be paid promptly when due all city, state and county ad valorem taxes and similar taxes and assessments, all sewer and water charges and all other governmental charges levied or imposed upon or assessed against the Property between the date hereof and the Closing Date. The foregoing representations are tree, correct and complete, and the foregoing warranties are in full force and effect and binding on Seller, as of the date hereof, and shall be true and correct and in full force and effect, as the case may be, and deemed to have been reaffirmed and restated by Seller as of the date and time of the Closing, shall survive the Closing and shall not be deemed merged into any instrument of conveyance delivered at the Closing, and shall inure to the benefit of and be enforceable by Buyer, its successors and assigns. 17. Survival of Representations, Warranties and Covenants. Each of the obligations, covenants, representations and warranties of the parties hereto set forth in this Agreement shall survive the Closing and shall not be merged in the deed or other instruments of conveyance. 18. Assignment. Seller shall not assign, transfer, convey, hypothecate or otherwise dispose of all or any part of its right, title and interest in the Property without Buyer's written consent, which consent Buyer may withhold in its sole discretion. Buyer may assign any of Buyer's rights hereunder or any part thereof to any person, firm, partnership, corporation or other entity without the prior written approval of Seller. Provided, however, that any assignee shall assume all of the duties, obligations and liabilities of assignor under this Agreement. In the event of any such assignment, assignor shall not be relieved of its duties and obligations hereunder. The assignor and the assignee shall be jointly and severally liable. 19. Complete Agreement. This Agreement represents the entire agreement between Seller and Buyer covering everything agreed upon or understood in this transaction. There are no oral promises, conditions, representations, understandings, interpretations or terms of any kind as conditions or inducements to the execution hereof or in effect between the parties. No change or addition shall be made to this Agreement except by a written agreement executed by Seller and Buyer. 20. Authorized Signatories. The persons executing this Agreement for and on behalf of Buyer and Seller each represent that they have the requisite authority to bind the entities on whose behalf they are signing. 21. Partial Invalidity. If any term, covenant or condition of this Agreement is held to be invalid or unenforceable in any respect, such invalidity or unenforceability shall not affect any other provision hereof, and this Agreement shall be construed as if such invalid or unenforceable provision had never been contained herein. 22. Brokers and Commission. All negotiations relative to this Agreement and the transaction contemplated hereby have been conducted by and between Seller and Buyer without the intervention of any person as agent or Broker. Seller and Buyer each warrant and represent to the other that there will be no broker's fees or commissions payable as a consequence of this transaction. Seller and Buyer shall and do each hereby indemnify and hold the other harmless from and against the claims, demands, actions and judgments of any and all brokers, agents and other intermediaries alleging a commission, fee or other payment to be owing by reason of any dealings, negotiations or communications with the indemnifying party in connection with this Agreement or the sale of the Property. 23. Attorneys' Fees. In the event that either party shall bring an action or legal proceeding for an alleged breach of any provision of this Agreement or any representation, warranty, covenant or agreement herein set forth, or to enforce, protect, determine or establish any term, covenant or provision of this Agreement or the rights hereunder of either party, the prevailing party shall be entitled to recover from the nonprevailing party, as a part of such action or proceedings, or in a separate action brought for that purpose, reasonable attorneys' fees and costs, expert witness fees and court costs as may be fixed by the court or jury. 24. Intentionally Deleted. 25. Governing Law; Construction. (a) Texas. This Agreement shall be interpreted and enforced according to the laws of the State of (b) All headings and sections of this Agreement are inserted for convenience only and do not form part of this Agreement or limit, expand or otherwise alter the meaning of any provisions hereof. (c) This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which shall constitute one and the same agreement. (d) The provisions of this Agreement are intended to be for the sole benefit of the parties hereto and their respective successors and assigns, and none of the provisions of this Agreement are intended to be, nor shall they be construed to be, for the benefit of any third party. (e) In the event any deadline arising under this Agreement shall fall on a Saturday, Sunday, or legal holiday, such deadline shall be automatically deemed to fall on the first business day immediately following such Saturday, Sunday, or legal holiday. 26. Default. (a) If the purchase and sale of the Property contemplated hereby is not consummated in accordance with the terms and conditions of this Agreement due to circumstances or conditions which constitute a default by Buyer hereunder, the Eamest Money shall be delivered to Seller as full liquidated damages for such default. The parties acknowledge that Seller's actual damages in the event of a default by Buyer hereunder will be difficult to ascertain, and that such liquidated damages represent the parties' best estimate of such damages. The parties expressly acknowledge that such liquidated damages are not intended as a penalty, but as full liquidated damages, in the event of Buyer's default and as consideration for Seller's taking the Property off the market during the term of this Agreement. The right of Seller to receive such liquidated damages shall be the sole and exclusive damage remedy of Seller hereunder (and Seller shall not have a right of specific performance or to sue for damages). (b) In the event of a default by Seller under the terms of this Agreement which is first discovered by Buyer prior to the Closing and is not cured by Seller as provided hereunder, Buyer shall be entitled to all remedies provided for herein or otherwise available to Buyer at law or in equity. 10 27. Severability. This Agreement is intended to be performed in accordance with, and only to the extent permitted by, all applicable laws, ordinances, rules and regulations, and is intended, and shall for all purposes be deemed to be, a single, integrated document setting forth all of the agreements and understandings of the parties hereto, and superseding all prior negotiations, understandings and agreements of such parties. If any term or provision of this Agreement or the application thereof to any person or circumstance shall for any reason and to any extent be held to be invalid or unenforceable, then such term or provision shall be ignored, and to the maximum extent possible, this Agreement shall continue in full force and effect, but without giving effect to such term or provision. IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto as of the date first above written. Seller: By:CITY ~F C~]~PELL, TEY..A'S !'] ;/~~ J'//~, City Manager ~ibby Ball, c t c;etary Signatures Continued on Following Page 11 Buyer: TEXAS DUGAN LIMITED PARTNERSHIP, a Delaware limited partnership By: DUGAN GENERAL PARTNER LLC, a Delaware limited liability company, its general partner By: DUGAN TEXAS LLC, a Delaware limited liability company, its sole member By: DUKE REALTY LIMITED PARTNERSHIP, an Indiana limited partnership, its Manager By: DUKE REALTY CORPORATION, an Indiana corporation, ~artner Jefif~. Turner S~ice President 12 EXHIBIT A-1 CITY OF' COPPELL (VOL. 2000242, PG, 08802) S73'51'12"W 0 1 O0 200 400 GRAPHIC 'SCALE IN FEET PART OF LOT 1, BLK. A DUKE-FREEPORT ADDI110N (VOL. 2001065, PG. 00037) 1.281 ACRES (55.796 SQ. Pr.) LOT I A The undenJlgned, Reglet~ed Pr~feJ~lon~i Land BEARING S~ ~. h~y c~fl~ ~at ~1. plat of RN~ ~T ~ ~E DUKE- ~T AD~, ~ ~DI~ y ~t~y ~ ~t ~e me~ ~d · e ~m~t trot d~. TO ~E ~ ~C~P~: ~S RENDED IN V~UME 2~1~5, PA~ 037 OF ~E ~ RE~RDS 1.281 ACRE TRACT 2001065, PG. 7) 1.281 ACRE TRACT OF LAND Vest Survey, Abstract No. 1508, City of Coppell, Da~la= County, Texas; DESCRIPTION. of a 1.281 acre ti'a~ of land situated in {he John Vest Survey, .N~stra~ No. '1508, City of Coppell, Dallas County, Texas; said tract being a portion of the same tract of land desoribed in deed to the City of Coppell, Texas recorded In Volume 2000242. Page 6802 of the Deed Records of Dallas County, Texas; said 1.281 awe tract being more particularly' described as follows; COMMENCING, at a point in the south east corner of the Intersection of the east linoof Freeport Parkway and tho south right of way line of Ruby Road as dedioated by the Duke-Freeport Addition, an addition to the City of Coppall, Texas a__,~-o_rding to the plat recorded in Volume 2001065, Page 37 of the Deed Records of Dallas County~ Texas; said point also being the north west comer of Lot 1, Binck A of the said Duke-Freeport Addition; THENCE, South 89 degrees, :3;? minutes, 4r seconds East, departing the said east line of Freepart Parkway and along the proposed sol,th line of Ruby Road. a distance of 128.4S feet to an angle point; THENCE. South 89 degrees. 06 minutes. 00 seconds East, continuing along the proposed south line of Ruby Road. a distance of 64.05 feet to a 1/24rich iron rod with "Pacheco Koch" cap set [or the POINT OF BEGINNING; THENCE, South 89 degrees, 06 minutes. 00 seconds East, along the said proposed ~south right- of-way line of Ruby Road, a distance of 903.70 feet to a 1/2-inch iron rod with 'Pacheco Koch' cap set for comer in the existing north right.of-way line of said Ruby Road; THENCE, South 73 degrees, 51 minutes, 12 seconds West, departing the said proposed south line of Ruby Road and along the said existing north line of Ruby Road, a distance of 42t_23 feet to a 5/8-Inch Iron rod found for comer; THENCE, North 75 degrees, 15 minutes. 12 seconds Weal, along the said existing north line of Ruby Road, passing at a distance of 65.87 feet the east comer of Lot 3, Block A, of said Duke- Freeport Addition; continuing along the north line of said Lot 3 and in a south line of the said City of Coppell TracL passing at a distance of 396.51 feet the west corner of said Lot 3. continuing in all a distance of 515.97 feet to the POINT OF BEGINNING; CONTAINING, 55,796 square feet or t _281 acres of land, more or leas. 2052-261 EXHIBIT A-2 ARC gL.C. (VOL. 97084. PG. 2081) UHE TABLE 0 100 , 200 400 GRAPHIC SCALE IN FEET T-175.50' I I , L--352.63' .~_,j.~,,.j..~///_-.r T,,2.~9,90' c.-s,r~'-~l~. ~/,///~/. / ~_-~,~' co-~2,m' I I ~'.',~/'//~,' ~ LOT ,1 BLK. A (,',~009 SCI. "--~Cl,T...'g~//// '-(VOL. 2~, , I The undersigned, Reg~tered Profe~llonal Lond Surveyor. hereby cettlfie~ that this plat of survey acc~ratdy eet~ out the mete~ and of the easemant tract, described. Prof~_~Tonai Land Sur~y~r I~M Nm= 1°-2~' m/oz/~O0~ ~ BEARING SYSTL'~ BASF,.D ON THE FINAL PLAT OF 7H£ DUKE- FREEPORT ADDI'BON. AN ADDITION TO THE CITY OF: COPPELL, TEXAS RECOROED IN VOLUME 2001065, PAGE 057 OF' THE DFFD RECORDS OF' DALL.A~ COUNTY, TEXAS. RUBY ROAD RIGHT-OF-WAY ABANDONMENT 1.033 ACRE RIGHT-OF-WAY ABANDONMENT OF RUBY ROAD John Vest Survey, AJ~ No. 1508, City of Coppell, Dallas County, Texa~ DESCRIPTION, of a 1.033 sore tract of land situated in the John Vast Survey, AbstraotNo. 1508, City of Coppell, Dallas County, Texas; said ~ being a portion of the same tract of land dedicated as Ruby Road on Final Plat of the Duke-Freeport Addition, an addition to lite City of Coppell, Texas according to the plat recorded in Volume 2001065, Page 37 of the Deed Records of Dallas County. Texas; said 1.033 acre tract being more particularly described as follows; BEGINNING, at a 1/2-inoh iron rod with "Pacheco Koch" cap found in the proposed south dght-of- way line of Ruby Road (a variable width public right-of-way); said point being in a north line Lot 1, Block A of said Duke-Freeport Addition; said point being South 89 degrees, 32 minutes, 47 seconds East, a distance of 28.45 from Ihs intersection of the said south right-of-way line of Ruby Road and the east right-of-way line of a right turn lane of Freeport Parkway; THENCE, South 89 degrees, 32 minutes, 47 seconds East, along the proposed sou~, right-of- way line of Ruby Road, a distance of 100.00 feet to e point for angle point; THENCE, South 89 degrees, 06 minutes, 00 seconds East, along the proposed south line of Ruby to a point for corner; said point being in a northeast line of said Duke-Freeport Addition; said paint also being In a southwest line of a t~act of land described in deed to the City Of Coppell, Texas recorded in Volume 2000242. Page 6802 of the Deed Records of Dallas County, Texas THENCE, South 75 degrees, 15 minutes, 12 seconds East, departing the proposed south line of Ruby Road and along said southwest line of City of Coppell tract, a distance of 119.45 feat to a point in the existing north line of said Ruby .Road; said point also being the west comer of Lot 3, Block A of said Duke-Freeport Addition; said point also being the beginning of a non-tangenl curve to the right whose cartier bears South 36 degrees. 06 minutes, 38 seconds West e distance of 480.00 feet from said point; THENCE, in a southeasterly direction along the southerly line of said Lot 3 and the preSent north right-of-way line of Ruby Road with the said non-tangent cun~e to the left; through a central angle of 00 degrees, 51 minutes, 17 seconds, an arc distance of 7.16 feet, on a chord bearing and distance of South 53 degrees. 27 minutes, 44 seconds East, 7.16 feet to a point; said point also being the beginning of a tangent reverse Gurve to the left whose center bears North 36 degrees, 57 minutes. 55 seconds East, a distance of 420.00 feet from said point; THENCE, in a southeasterly direction along the southerly line of said Lot 3 and the present north right-of-way line of Ruby Road with the said non-tangent curve to the left; through a ceRtrai angle of 45 degrees. 22 minutes, 38 seconds, an ar= distance of 332.63 feet, on a cflord bearing end distance of South 75 degrees, 43 minutes, 24 seconds East, 324.01 feet to a point; .said point being the east comer of said Lot 3; THENCE, South 75 degrees, 15 minutes, 12 seconds East, a distance of 65.87' feet toe 5/8-inch iron rod found for angled point; THENCE. North 73 degrees. 51 minutes, 12 seconds East, continuing with the south line of said City of Coppell tract and said north line of Ruby Road. a distance of 421.23 feet to a point for comer in the proposed south line of said Ruby Road; THENCE, South 89 degrees, 06 minutes, 00 seconds East, del~artJng the said existing north line of Ruby Road and along the said proposed south line of Ruby Road, a distance of 102.34 feet to a point for comer in the existing south line oir Ruby Road; said point being in the north line of said Lot 1; Right-of-Way Abandonment of Ruby Road John Vest Survey, Abstract No. 1508 Page 2 THENCE. westerly, along the existing south right-of-way line of Ruby Road, and Ihs said north line of L~! 1, the following three calls; South 73 degrees, 5t minutes, 12 seconds West, a distance of 519.07 feet to a point at the beginning of a curve to the dght whose center bears North 15 degrees. 08 minutes, 48 seconds West, a distance of 480.00 feet from ssid point; In a westerly direction, along said tangent curve, through a central angle of 53 degrees, 06 minutes. 43 seconds, an arc distance of 444.96 feel, on a chord bearing and distance of North 79 degrees, 35 minutes, 27 seconds West, 429.19 feet to a point of reverse curvature to I/~e left whose center bears Soulh 36 degrees, 57 minutes. 55 seconds West, a distance of 420.00 feet from said point; In a westerly direction, along said reverse curve to the left, through a centml:,angle of 36 degrees, 30 minutes, 42 seconds, an arc distance of 267.64 feet, on a chord bearing and distance of North 71 degrees. 17 minutes, 26 seconds West, 263.14 feet to a the POINT OF BEGINNING; CONTAINING, 45,009 square feet or 1.033 acres of land, mere o~ less- E Date -I R,P.I. . . Koch Consulting Engineers, Inc. Cenfral Expw~. # t 000, Dallas TX 75206 235-3031 EXHIBIT B FORM OF ESCROW AGREEMENT This Escrow Agreement (the "Agreement"), is entered into this ~L.~____ day of(f,z~_~, 2002, ALLEGIANCE TITLE COMPANY ("ALLEGIANCE"),~Hrof'¢~# among ("SELLER"), andT~a ~ ,t,~, ~ ("~BUYER"). WITNESSETH: WHEREAS, Seller and Buyer have entered into that certain Real Estate Purchase Agreement (the "Purchase Agreement") dated as of ]~-",.5"- t$ ~.. , for the sale and purchase of that certain real property described therein; the Purchase Agreement is attached hereto as Exhibit A and by this reference made a part hereof, and all terms used but not defined herein shall have the meanings given to such terms in the Purchase Agreement; and WHEREAS, Buyer and Seller desire to have Allegiance hold the Earnest Money in escrow, as required by the Purchase Agreement and pursuant to the terms hereof. NOW, THEREFORE, in consideration of the foregoing premises and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and upon and subject to the terms, provisions and conditions hereinafter set forth, ALLEGIANCE, SELLER and BUYER hereby agree as follows: Receipt of Escrowed Fund. ALLEGIANCE hereby acknowledges receipt from BUYER of the Escrowed Fund and agrees to hold and disburse the same in strict accordance with the provisions of this Agreement. Disbursement of Escrowed Fund. The Escrowed Fund will be disbursed by ALLEGIANCE upon J Any excess_funds remaining after the disbursement called for above has been made shall be payable to ~'o~/,t C . ! Interest. Insert as appropriate. Liabilities of ALLEGIANCE TITLE COMPANY. ALLEGIANCE shall be liable only to hold the Escrowed Fund received herewith and to deliver same to persons or entities named herein in accordance with the provisions of this Agreement and any amendments hereto. It is being expressly understood that by acceptance hereof ALLEGIANCE is acting in the capacity of a Earnest Moneyory only and shall not be liable or responsible to anyone for any damages, losses, or expenses unless same shall be caused by its gross negligence or willful malfeasance. ALLEGIANCE shall not be bound in any way by any other contract or agreement between SELLER and BUYER whether it has knowledge of any such contract or agreement or of its terms or conditions. 13 Modification and Termination. This Agreement shall not be modified, revoked, released or terminated except upon the mutual consent of SELLER, BUYER and ALLEGIANCE given in writing and delivered to ALLEGIANCE such parties subject to the provisions of Paragraph 9 hereofi Resignation of ALLEGIANCE. Should, at any time, any attempt be made to modify this Agreement in a manner that would increase the duties and responsibilities of ALLEGIANCE TITLE COMPANY or to modify this Agreement in any manner that ALLEGIANCE TITLE COMPANY shall deem undesirable, or at any other time, ALLEGIANCE TITLE COMPANY may resign by notifying the parties hereto in writing, by certified mail to their respective addresses set forth below; and until (I) the acceptance by a successor as escrow agent as shall be appointed by such parties; or (ii) fifteen (15) days following the date upon which notice was mailed, whichever occurs sooner, ALLEGIANCE's only remaining obligation shall be to perform its duties hereunder in accordance with the terms of this agreement. Disagreement. Should any controversy arise between the parties with respect to this Agreement or with respect to the right to receive any portion of the Escrowed Fund, or should ALLEGIANCE in its sole discretion, deem it desirable, even in the absence of such controversy, ALLEGIANCE shall have the right to institute a bill of interpleader in any court of competent jurisdiction to determine the rights of the parties, or ALLEGIANCE may, in either of such events, refuse to take any action to deliver or dispose of the Escrowed Fund, having the right to hold the same without any right of obligation to deliver the same until it has been served with a judgement properly instructing ALLEGIANCE as to the disposition of such Escrowed Fund. ALLEGIANCE may act upon and dispose of the Escrowed Fund as provided in any such judgement, even though it is party to the suit. Should a bill of interpleader be instituted and ALLEGIANCE becomes involved in litigation in any manner whosoever on account of this Agreement, the parties hereto agree, and bind their heirs, legal representatives, successors, and assigns, to pay ALLEGIANCE's reasonable attorney's fees incurred and any other reasonable disbursements, expenses, losses, costs, and damages in connection with or arising from such litigation. ALLEGIANCE shall have no obligation to take any legal action in connection with this Agreement or towards its enforcement, or to appear in, prosecute, or defend any action or legal proceeding which would or might involve it in any cost, expense, loss or liability, unless security and indemnity shall be furnished. Binding Effect. This Agreement contains the entire understanding between and among the parties hereto, and shall be binding upon and insure to the benefit of such parties, and subject to its terms, their respective successors, heirs, assigns and legal representatives. Governing Laws. This Agreement is being executed and delivered in and shall be governed by and construed and enforced in accordance with the laws of the State of Texas. 14 10. Notices. Any notices required or permitted to be given hereunder shall be given by certified or registered mail, return receipt requested, to the following addresses or to such other single address as any party hereto shall notify the others: ALLEGIANCE TITLE COMPANY 2100 McKinney Avenue, Suite 1200 Dallas, T?xas,75201 Attn: ,4~.rlh_ ~ . The notice addresses for Seller and Buyer shall be as set forth in the Purchase Agreement. ALLEGIANCE: Title~y k~. 0 /~ SELLER: CITY OF~TEXAS By: J~lVitt, City Manager ATTEST/ · Ei¥~y ~,~,, City Secretary ' APPRO~' ,~'t~,~ By: R~b~. H/a~, C~ty/Att o~mey Signatures continued on following page 15 BUYER: TEXAS DUGAN LIMITED PARTNERSHIP, a Delaware limited partnership By: DUGAN GENERAL PARTNER LLC, a Delaware limited liability company, its general partner By: DUGAN TEXAS LLC, a Delaware limited liability company, its sole member By: DUKE REALTY LIMITED PARTNERSHIP, an Indiana limited partnership, its Manager By: DUKE REALTY CORPORATION, an Indiana corporation, its general partner Je~t~e¥~.~l'urner SV Vice President 16 D' 'ke November 18, 2002 Ms. Paula Crocker Department of Engineering & Public Works City of Coppell 255 Parkway Boulevard Coppell, TX 75019 Re: Executed Originals of Ruby Road Purchase Agreement Dear Paula: Please fred enclosed three (3) executed originals of the Ruby Road Purchase Agreement. Comments requested by Ken Griffin in his 10/31/02 e-mail to me have been incorporated in the document. These should be ready for signature by City Manager Jim Witt. We will appreciate receiving a fully executed version when one is ready. If you have any questions or comments, please call me at (972) 361-6714. Thank you for your assistance with this matter. Sincerely, Brook Barefoot cI it Development Services Manager - /~ - 5495 Belt Line Road Atlanta v Suite 360 Chicago Dallas, TX 75254 Cincinnati 972.361.6700 Cleveland www. dukerealty, com Columbus Dallas Indianapolis Minneapolis Nashville Orlando Raleigh St. Louis Tampa