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2001-07-17 City of Southlake, Texas SOUTHLAKE PARKS DEVELOPMENT CORPORATION BOARD MEETING: • Tuesday, July 17, 2001 4:30 p.m. LOCATION: Town Hall Council Chamber 1400 Main Street, Southlake, Texas REGULAR SESSION 4:30 P.M.: (prior to City Council meeting) 1. Call to order. 2. Executive Session: Pursuant to the Open Meetings Act, Chapter 551 of the Texas Government Code, Section 551.071, consultation with attorney, Section 551.072, deliberation regarding real property, and/or Section 551.073, deliberation regarding prospective gift. 3. Reconvene: Action necessary on items discussed in executive session 4. PUBLIC FORUM CONSENT AGENDA: . All items listed below are considered to be routine by the Southlake Parks Development Corporation Board and will be enacted with one motion. There will be no separate discussion of items unless a Board member or citizen so requests, in which event the item will be removed from the general order of business and considered in its normal sequence. 5. Consent: A. Resolution No. 01-04 SPDC, authorizing the issuance of "Southlake Parks Development Corporation Sales Tax Revenue Bonds, Series 2001"; pledging certain "Pledged Revenues" of the Corporation, including "Gross Sales Tax Revenues," to the payment of the principal of and interest on said Bonds and enacting other provisions incident and related to the issuance, payment, security and delivery of said bonds, including the approval and execution of a Paying Agent/Registrar Agreement, a Purchase Contract and a Financing/Use Agreement with the City and the approval and distribution of an Official Statement, and resolving other matters incident and related to the issuance and sales of the Bonds. PUBLIC HEARING REGULAR AGENDA: 6. Consider: A. Purchase of approximately 16 acres of land in Southeast section of City for future park needs. PUBLIC HEARING B. Authorizing Application for a Texas Recreation and Parks Account Program (TRPA) Indoor Recreation Grant from the Texas Parks and Wildlife Department. PUBLIC HEARING. 7. Adjournment CERTIFICATE I hereby certify that the above agenda was posted on the Official Bulletin Boards at Town Hall, 1400 Main Street, on Friday, July 13, at6l9���im pursuant to the Texas Government Code, Chapter 551. , J2w4t Sandra L. LeGrand • City Secretary �•�,*• .•�'••` If you plan to attend this meeting and have a disability that requires special needs, please advise the City Secretary 48 hours in advance at 817/481-1519, and reasonable accommodations will be made to assist you. S EXECUTIVE SESSION Southlake Parks Development Corporation Board SECTION 551.071 CONSULTATION WITH ATTORNEY The Southlake Crime Control and Prevention District Board may conduct a private consultation with its attorney when the Board seeks the advise of its attorney concerning any item on this agenda, about pending and contemplated litigations, or a settlement offer, or on a matter in which the duty of the attorney to the Southlake Parks Development Board under the Texas Disciplinary Rules of Professional Conduct of the State Board of Texas clearly conflicts with Chapter 551. SECTION 551.072 DELIBERATION REGARDING REAL PROPERTY The Southlake Crime Control and Prevention District Board may conduct a closed meeting to deliberate the purchase, exchange, lease or value of real property. SECTION 551.073 DELIBERATION REGARDING PROSPECTIVE GIFT SThe Southlake Crime Control and Prevention District Board may conduct a closed meeting to deliberate a negotiated contract for a prospective gift or donation to the City. A FINAL ACTION, DECISION, OR VOTE ON A MATTER DELIBERATED IN A CLOSED MEETING MAY ONLY BE MADE IN OPEN SESSION. SOUTHLAKE PARKS DEVELOPMENT CORPORATION MEETING July 17, 2001 MINUTES Board Members Present: President Ralph Evans; Members: Tim O'Conner, Rex Potter, Bobby Rawls, Rick Stacy, Tom Stephen, and Tad Stephens. Staff Present: Director of Community Services Kevin Hugman, Deputy Director of Community Services Steve Polasek, Finance Director Sharen Elam, and Executive Secretary Kim Bush. Agenda Item No. 1, Call to order. The meeting was called to order by President Ralph Evans at 4:40 p.m. Agenda Item No. 2, Executive Session. President Evans announced that the Board would be going into Executive Session pursuant to the Open Meetings Act, Chapter 551, Texas Government Code, Sections 551.071, consultation with attorney, 551.072, deliberation regarding real property, and/or 551.073 deliberation regarding prospective gift. Executive Sessions may be held at any time during the meeting that a need arises. SPDC adjourned for Executive Session at 4:42 p.m. SPDC returned to open session at 5:00 p.m. • Agenda Item No. 3. Reconvene. Motion was made (and amended) to direct staff to proceed with purchase of two tracts of property located in the southeast portion of the city for park purposes for a price not to exceed $2.2 million and further stipulating that the seller agrees to pay realtor commissions, seller agrees to issue City a credit of $30,000 in deposit fees collected from current Lessee, lease payments to be pro-rated to City dependent on closing date, and the purchase of the two tracts is dependent upon the purchase of the other. Motion: Potter Second: Stacy Ayes: Evans, O'Conner, Potter, Rawls, Stacy, Stephen, Stephens Nays: none Approved: 7-0 Agenda Item No. 4. Public Forum. Mr. Walter, 907 Westminster Way. Commented that he is in favor of the City purchasing the property for park purposes but he has some concerns about the ballfield lights. He stated that he would prefer that the lights not be on any longer than 10:00 - 10:30 p.m. SPDC Meeting Minutes, July 17, 2001, Page 1 of 3 Community Services Director Kevin Hugman commented that the same regulations at the other ballfields will apply on this property as well. He stated that currently lights are required to be off by 10:30 p.m., Sunday - Thursday and 11:30 p.m., Friday and Saturday. CONSENT AGENDA. Agenda Item No. 5A was moved to 6C because the item requires a public hearing. REGULAR SESSION. Agenda Item No. 6A. Purchase of 16 acres of property for park purposes. This item was discussed in executive session and voted on in open session --see Agenda Item No. 3 above. Agenda Item No. 6B. Authorizing Application for a Texas Recretion and Parks Account Program (TRPA) Indoor Recreation Grant from the Texas Parks and Wildlife Department. Public Hearing. Deputy Director of Community Services Steve Polasek explained to the Board that staff was submitting an application to TPWD for a matching funds grant of up to $750,000 for a recreation center to be located on the Timarron/Richards tract. The application deadline is July 31, 2001. Mr. Polasek explained that the Park Board approved the item at its meeting on July 16 and City Council will consider this item at its regular meeting later tonight. The Board discussed ways in which the components of the proposed recreation center could be reduced. The Board suggested that the administrative offices be cut and the gym be reduced in size. Board member Potter also asked that staff look at relocating the parking area to the corner in order to accommodate some of the needs of the school on Byron Nelson Parkway. Director Hugman commented that staff was looking at using that area as a buffer to the residents. There were no comments from the audience during the public hearing. Motion was made to reduce the size of the recreation center to a maximum of 27,000 square feet at a construction cost not to exceed $4.1 million and proceed with submitting an application to Texas Parks and Wildlife for a matching grant of$750,000. Motion: Stephen Second: Potter Ayes: Evans, O'Conner, Potter, Rawls, Stacy, Stephen, Stephens Nays: none Approved: 7-0 Agenda Item No. 6C. Resolution No. 01-04 SPDC, authorizing the issuance of "Southlake Parks Development Corporation Sales Tax Revenue Bonds, Series 2001"; pledging certain "Pledged Revenues" of the Corporation, including "Gross Sales Tax Revenues," to the payment of the principal of and interest on said Bonds and enacting other provisions incident and related to the issuance, payment, security and delivery of said bonds, including the approval and execution of a Paying Agent/Registrar Agreement, a Purchase Contract and a Financing/Use Agreement with the City and SPDC Meeting Minutes, July 17, 2001, Page 2 of 3 the approval and distribution of an Official Statement, and resolving other matters incident and related to the issuance and sales of the Bonds. Public Hearing. 411/ Finance Director Sharen Elam commented that approval of this resolution is the final step in the process to issue sales tax revenue bonds for the purpose of purchasing land. There were no comments from the audience during the public hearing. Motion was made to approve Resolution No. 01-04 SPDC. Motion: Stacy Second: Potter Ayes: Evans, O'Conner, Potter, Rawls, Stacy, Stephen, Stephens Nays: none Approved: 7-0 Agenda Item No. 7. Adjournment. Motion was made and carried to adjourn the meeting at 6:00 p.m. President Ralph vans 1 ATTEST: i Bush 414° E cutive Secretary SPDC Meeting Minutes, July 17, 2001, Page 3 of 3 City of Southlake, Texas MEMORANDUM July 13, 2001 TO: SPDC Board of Directors FROM: Kevin Hugman, Director of Co unity Services SUBJECT: Board Meeting—Tuesday, a 7, 2001 4:30 p.m., Town Hall Coun it Chambers 1. Agenda Item No. 2. Executive Session. We will need to discuss with the Board one item regarding land acquisition. The Board has discussed this particular acquisition at your last meting on June 19, 2001. 2. Agenda Item No. 4. PUBLIC FORUM: This is the public's opportunity to address the Board about non-agenda items. During this proceeding it is important that the Board not deliberate (discuss among yourselves) or take action on any item brought up at this time. The Boards' options during this topic are 1) to listen, 2) ask questions and respond to the presenter only, 3) request staff to look into the issue and report back to the Board or 4) request that the Chair put the item on a future agenda for the Board to discuss or consider. 3. Agenda Item No. 5A. Resolution No. 01-04 SPDC, authorizing the issuance of"Southlake Parks Development Corporation Sales Tax Revenue Bonds, Series 2001". As you recall, in June the Corporation authorized a public hearing be set for the purpose of issuing SPDC bonds to fund capital projects. This item is the public hearing that was scheduled and if approved, will authorize the issuance of$1,500,000 in bonds. If you have any questions, please contact Sharen Elam. 4. Agenda Item No. 6A. Purchase of approximately 16 acres of land in southeast section of City for future park needs. This item relates to the recent executive session discussions regarding the purchase of property for use as park land. If you have any questions regarding this item, please contact Kevin Hugman. 5. Agenda Item No. 6B. Authorize application for a Texas Recreation and Parks Account Program (TRPA) Indoor Recreation Grant from the Texas Parks and Wildlife Department. As directed by Council at their June 5, 2001 meeting, staff has been working to develop the grant application for the recreation center for submittal to the Texas Parks and Wildlife Department by the July 31, 2001 deadline. A revised agreement was entered into with Brinkley Sargent Architects for the development of the recreation center conceptual floor plan with cost estimate. Staff met with the Parks Board on June 11, 2001 to discuss the necessary components of a recreation center and this information was reviewed with the architect. Senior Parks Planner Chris Carpenter is managing the various elements of the grant application and has compiled the majority of required documents. If awarded, the City would be eligible for up to $750,000 in matching grant funds. The Parks Board will consider SPDC Board of Directors Board Meeting—Tuesday, July 17, 2001 Page 2 this item at a July 16, 2001 meeting. City Council will consider this item on July 17, 2001 following the SPDC meeting. If you have any questions, please contact Kevin Hugman. OTHER ITEMS 6. As a reminder, the next meeting of the SPDC will be held on Monday, July 23, 2001, at which time the sales tax report, project status report, and minutes from the June meeting will be included in your packets. We appreciate your commitment and service to the City. If you have any questions regarding the agenda or materials, please feel free to contact me at 481-1527. KH STAFF CONTACT INFORMATION: Sharen Elam, Director of Finance, 481-1713 Kevin Hugman, Director of Community Services, 481-1527 Steve Polasek, Deputy Director of Community Services, 481-1543 Ben Henry, Park Planning and Construction Superintendent, 481-1584 Chris Carpenter, Senior Parks Planner, 481-1585 p City of Southlake, Texas MEMORANDUM TO: SPDC Board of Directors FROM: Sharen Elam, Director of Finance, Ext. 1713 SUBJECT: Resolution No. SPDC 01-04 Action Requested: Approval of Resolution No. SPDC 01-04 is the final step to issue Sales Tax Revenue Bonds for capital projects. Background Information: Approval of this resolution is the final step in the process to issue sales tax revenue bonds. The Board will hold a public hearing on the projects during the regular meeting on Tuesday, July 17, 2001. In order for the sales tax revenue bonds to be issued, the City Council must consider a resolution that approves the SPDC's resolution to issue the bonds. This is required under Section 4B of the Development Corporation Act of 1979. The resolution will also include a Financing/Use Agreement with SPDC, in which the Board authorizes the City to construct projects and to 111 invest and disburse funds. Financial Considerations: This will be repaid through the Y2 cent sales tax. Citizen Input/ Board Review: Public hearing is scheduled for July 17, 2001 at 4:30. Legal Review: Ed Esquivel with the law firm Fulbright and Jaworski serves as the City's bond counsel, and as such has prepared the Resolution. Alternatives: In the absence of issuing certificates, capital projects would be funded on a pay-as-you-go basis. Budgets and the timing of projects would be prioritized based on the amount of revenue projected by fiscal year. • Supporting Documents: Resolution No SPDC 01-04 Staff Recommendation: Approval of Resolution No. SPDC 01-04 • RESOLUTION NO. 01-04 A RESOLUTION authorizing the issuance of "SOUTHLAKE PARKS DEVELOPMENT CORPORATION TAXABLE SALES TAX THIRD LIEN REVENUE BONDS, SERIES 2001-A"; pledging certain "Pledged Revenues" of the Corporation, including "Gross Sales Tax Revenues", to the payment of the principal of and interest on said Bonds and enacting other provisions incident and related to the issuance, payment, security and delivery of said bonds, including the approval and execution of a Paying Agent/Registrar Agreement and a Financing/Use Agreement with the City, resolving other matters incident and related to the issuance and sale of the Bonds; and providing an effective date. WHEREAS, the Board of Directors of the Southlake Parks Development Corporation (the "Corporation") hereby finds and determines that bonds of the Corporation in the principal amount of $1,500,000 should be issued at this time to finance a park project involving the acquisition of land, buildings, equipment, facilities and improvements required or suitable for use for professional and amateur (including children's) sports, athletic, entertainment, and public park purposes and events, including stadiums and ball parks (Texas School of Baseball) (the "Project"); and WHEREAS, in accordance with a "Notice of Public Hearing Relating to Southlake Parks Development Corporation Project" duly published on , 2001, in the Fort Worth Star-Telegram, a newspaper of general circulation in the City of Southlake, Texas, a public hearing was duly held and conducted on the date hereof prior to the adoption of this resolution by the Board of Directors on the Corporation's intention to undertake the Project; and WHEREAS, the Board of Directors has further determined and hereby finds that the Project to be financed by the issuance of the bonds is for and on behalf of the City of Southlake, Texas, and the principal amount of such bonds and other obligations of the Corporation payable in whole or in part from the "Gross Sales Tax Revenues" (hereinafter defined), together with the amount of the costs of other projects (other than such bonds and other obligations) for which payments to be made in cash directly from such "Gross Sales Tax Revenues" do not, in the aggregate, exceed $135,000,000; and WHEREAS, the Board of Directors further finds and determines that the bonds herein authorized should be payable from a lien on and pledge of the Pledged Revenues (as defined herein)junior and subordinate to the lien on and pledge of such Pledged Revenues securing the payment of the Priority Bonds (hereinafter identified and defined and such bonds are to be delivered to the owner of the Project to be acquired in exchange for the title to such Project; now, therefore, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE SOUTHLAKE PARKS DEVELOPMENT CORPORATION: SECTION 1: Authorization - Designation - Principal Amount - Purpose. Bonds of the Corporation shall be and are hereby authorized to be issued in the aggregate principal amount of $1,500,000 to be designated and bear the title "SOUTHLAKE PARKS DEVELOPMENT CORPORATION TAXABLE SALES TAX THIRD LIEN REVENUE BONDS, SERIES 2001", hereinafter referred to as the "Bonds" to finance a park project involving the acquisition of land, buildings, equipment, facilities and improvements required or suitable for use for professional 6-A and amateur (including children's) sports, athletic, entertainment, and public park purposes and events, including stadiums and ball parks (Texas School of Baseball), in conformity with the Constitution and laws of the State of Texas, including Vernon's Ann. Civ. Stat., Section 4B of Article 5190.6. SECTION 2: Fully Registered Obligations - Authorized Denominations - Stated Maturities - Date. The Bonds shall be issued as fully registered obligations, without coupons, shall be dated July 15, 2001 (the "Issue Date") and shall be in denominations of $5,000 or any integral multiple thereof (within a Stated Maturity), shall be numbered consecutively from One (1) upward and shall become due and payable annually on August 15 in each of the years and in principal amounts (the "Stated Maturities") and bear interest at per annum rates in accordance with the following schedule: Principal Interest Stated Maturity Amount Rates 2002 $ 115,000 6.00% 2003 120,000 6.00% 2004 130,000 6.00% 2005 135,000 6.00% 2006 145,000 6.00% 2007 155,000 6.00% 2008 160,000 6.00% 2009 170,000 6.00% 2010 180,000 6.00% 2011 190,000 6.00% The Bonds shall bear interest on the unpaid principal amounts from the date of their delivery to the initial owner (which date shall be the registration date noted on the Initial Bond(s) in the "Registration Certificate of Paying Agent/Registrar" to appear thereon) at the per annum rate shown above in this Section (calculated on the basis of a 360-day year of twelve 30-day months). Interest on the Bonds shall be payable on February 15 and August 15 in each year, commencing February 15, 2002. SECTION 3: Terms of Payment - Paying Agent/Registrar. The principal of, and the interest on the Bonds, due and payable by reason of maturity, redemption or otherwise, shall be payable only to the registered owners or holders of the Bonds (hereinafter called the "Holders") appearing on the registration and transfer books maintained by the Paying Agent/Registrar and the payment thereof shall be in any coin or currency of the United States of America, which at the time of payment is legal tender for the payment of public and private debts, and shall be without exchange or collection charges to the Holders. The selection and appointment of The Chase Manhattan Bank, as Paying Agent/Registrar for the Bonds is hereby approved and confirmed. Books and records relating to the registration, payment, exchange and transfer of the Bonds (the "Security Register") shall at all times be kept and maintained on behalf of the Corporation by the Paying Agent/Registrar, all as provided herein, in accordance with the terms and provisions of a "Paying Agent/Registrar Agreement", substantially in the form attached hereto as Exhibit A and such reasonable rules and regulations as the Paying Agent/Registrar and the Corporation may prescribe. The President and Secretary of the Board of Directors are hereby authorized to execute and deliver such Agreement in connection with the delivery of the Bonds. The Corporation covenants to 45059652_1.doc 2 maintain and provide a Paying Agent/Registrar at all times until the Bonds are paid in full and discharged. Any successor Paying Agent/Registrar shall be a bank, trust company, financial institution or other entity qualified and authorized to serve in such capacity and perform the duties and services of Paying Agent/Registrar. Upon any change in the Paying Agent/Registrar for the Bonds, the Corporation agrees to promptly cause a written notice to be sent to the Holder affected by United States Mail, first class postage prepaid, which notice shall identify and give the address of the new Paying Agent/Registrar. Principal of and premium, if any, on the Bonds shall be payable at the Stated Maturities or upon their earlier redemption, only upon presentation and surrender of the Bonds to the Paying Agent/Registrar at its principal offices in Dallas, Texas (the "Designated Payment/Transfer Office"). Interest on the Bonds shall be paid to the Holders whose name appear in the Security Register at the close of business on the Record Date (the last business day of the month next preceding each interest payment date) and shall be paid by the Paying Agent/Registrar (i) by check sent United States Mail, first class postage prepaid, to the address of the Holder recorded in the Security Register or (ii) by such other method, acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, the Holder. If the date for the payment of the principal of or interest on the Bonds shall be a Saturday, Sunday, a legal holiday, or a day when banking institutions in the city where the Designated Payment/Transfer Office of the Paying Agent/Registrar is located is authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not such a Saturday, Sunday, legal holiday, or day when banking institutions are authorized to close; and payment on such date shall have the same force and effect as if made on the original date payment was due. In the event of a non-payment of interest on one or more maturities on a scheduled payment date, and for thirty (30) days thereafter, a new record date for such interest payment for such maturity or maturities (a "Special Record Date") will be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been received from the Corporation. Notice of the Special Record Date and of the scheduled payment date of the past due interest (which shall be 15 days after the Special Record Date) shall be sent at least five (5) business days prior to the Special Record Date by United States Mail, first class postage prepaid, to the address of each Holder of such maturity or maturities appearing on the Security Register at the close of business on the last business day next preceding the date of mailing of such notice. SECTION 4: Redemption. (a) Optional Redemption. The Bonds shall be subject to redemption prior to maturity, at the option of the Corporation, in whole or in part in principal amounts of $5,000 or any integral multiple thereof (and if within a Stated Maturity by lot by the Paying Agent/ Registrar), on any date at the redemption price of par plus accrued interest to the date of redemption. (b) Exercise of Redemption Option. At least forty-five (45) days prior to a date set for the redemption of Bonds (unless a shorter notification period shall be satisfactory to the Paying Agent/Registrar), the Corporation shall notify the Paying Agent/Registrar of its decision to exercise the right to redeem Bonds, the principal amount of each Stated Maturity to be redeemed, and the date set for the redemption thereof. The decision of the Corporation to exercise the right to redeem Bonds shall be entered in the minutes of the governing body of the Corporation. 45059652_1.doc 3 • (c) Selection of Bonds for Redemption. If less than all Outstanding Bonds are to be redeemed on a redemption date, the Paying Agent/Registrar shall treat such Bonds as representing the number of Bonds Outstanding which is obtained by dividing the principal amount of such Bond by $5,000 and shall select the Bonds, or principal amount thereof, to be redeemed by lot. (d) Notice of Redemption. Not less than thirty (30) days prior to a redemption date for the Bonds, a notice of redemption shall be sent by United States Mail, first class postage prepaid, in the name of the Corporation and at the Corporation's expense, to each Holder of a Bond to be redeemed in whole or in part at the address of the Holder appearing on the Security Register at the close of business on the business day next preceding the date of mailing such notice, and any notice of redemption so mailed shall be conclusively presumed to have been duly given irrespective of whether received by the Holder. All notices of redemption shall (i) specify the date of redemption for the Bonds, (ii) identify the Bonds to be redeemed and, in the case of a portion of the principal amount to be redeemed, the principal amount thereof to be redeemed, (iii) state the redemption price, (iv) state that the Bonds, or the portion of the principal amount thereof to be redeemed, shall become due and payable on the redemption date specified, and the interest thereon, or on the portion of the principal amount thereof to be redeemed, shall cease to accrue from and after the redemption date, and (v) specify that payment of the redemption price for the Bonds, or the principal amount thereof to be redeemed, shall be made at the Designated Payment/Transfer Office of the Paying Agent/ Registrar only upon presentation and surrender thereof by the Holder. If a Bond is subject by its terms to prior redemption and has been called for redemption and notice of redemption thereof has been duly given or waived as herein provided, such Bond 11/1 (or the principal amount thereof to be redeemed) shall become due and payable, and interest thereon shall cease to accrue from and after the redemption date therefor, provided moneys sufficient for the payment of such Bonds (or of the principal amount thereof to be redeemed) at the then applicable redemption price are held for the purpose of such payment by the Paying Agent/Registrar. SECTION 5: Registration - Transfer - Exchange of Bonds - Predecessor Bonds. The Paying Agent/Registrar shall obtain, record, and maintain in the Security Register the name and address of each registered owner of the Bonds issued under and pursuant to the provisions of this Resolution. Any Bond may, in accordance with its terms and the terms hereof, be transferred or exchanged for Bonds of other authorized denominations upon the Security Register by the Holder, in person or by his duly authorized agent, upon surrender of such Bond to the Designated Payment/Transfer Office of the Paying Agent/Registrar for cancellation, accompanied by a written instrument of transfer or request for exchange duly executed by the Holder or by his duly authorized agent, in form satisfactory to the Paying Agent/Registrar. Upon surrender for transfer of a Bond at the Designated Payment/Transfer Office of the Paying Agent/Registrar, one or more new certificates evidencing the Bonds, in authorized denominations, of like Stated Maturity and of a like aggregate principal amount as the Bond or Bonds surrender for transfer shall be registered and issued to the assignee or transferee of the previous Holders. At the option of the Holder, Bonds may be exchanged for other Bonds of authorized denominations and having the same Stated Maturity, bearing the same rate of interest and of like aggregate principal amount as the Bonds surrendered for exchange, upon surrender of the Bonds to be exchanged at the Designated Payment/Transfer Office of the Paying 45059652_1.doc 4 Agent/Registrar. Whenever any Bonds are surrendered for exchange, the Paying 411 Agent/Registrar shall register and deliver new printed certificates evidencing the Bonds, executed on behalf of, and furnished by, the Corporation, to the Holder requesting the exchange. All Bonds issued upon any transfer or exchange of Bonds shall be delivered at the Designated Payment/Transfer Office of the Paying Agent/Registrar, or sent by United States Mail, first class postage prepaid, to the Holder and, upon the delivery thereof, the same shall be valid obligations of the Corporation, evidencing the same obligation to pay, and entitled to the same benefits under this Resolution, as the Bonds surrendered in such transfer or exchange. All transfers or exchanges of Bonds pursuant to this Section shall be made without expense or service charge to the Holder, except as otherwise herein provided, and except that the Paying Agent/Registrar shall require payment by the Holder requesting such transfer or exchange of any tax or other governmental charges required to be paid with respect to such transfer or exchange. Bonds canceled by reason of an exchange or transfer pursuant to the provisions hereof are hereby defined to be "Predecessor Bonds," evidencing all or a portion, as the case may be, of the same obligation to pay evidenced by the Bond or Bonds registered and delivered in the exchange or transfer therefor. Additionally, the term "Predecessor Bonds" shall include any mutilated, lost, destroyed, or stolen Bond for which a replacement Bond has been issued, registered and delivered in lieu thereof pursuant to Section 24 hereof and such new replacement Bond shall be deemed to evidence the same obligation as the mutilated, lost, destroyed, or stolen Bond. 1111 SECTION 6: Execution - Registration. The Bonds shall be executed on behalf of the Corporation by the President of the Board of Directors under its seal reproduced or impressed thereon and attested by the Secretary of the Board of Directors of the Corporation. The signature of said officers on the Bonds may be manual or facsimile. Bonds bearing the manual or facsimile signatures of individuals who are or were the proper officers of the Corporation on the Issue Date shall be deemed to be duly executed on behalf of the Corporation, notwithstanding that such individuals or either of them shall cease to hold such offices at the time of delivery of the Bonds to the initial owners and with respect to Bonds delivered in subsequent exchanges and transfers. No Bond shall be entitled to any right or benefit under this Resolution, or be valid or obligatory for any purpose, unless there appears on such Bond either a certificate of registration substantially in the form provided in Section 8C, manually executed by the Comptroller of Public Accounts of the State of Texas or his duly authorized agent, or a certificate of registration substantially in the form provided in Section 8D, manually executed by an authorized officer, employee or representative of the Paying Agent/Registrar, and either such certificate upon any Bond duly signed shall be conclusive evidence, and the only evidence, that such Bond has been duly certified, registered and delivered. Notwithstanding the above and foregoing paragraph, the Initial Bond(s) authorized for delivery to the initial owners in Section 7 hereof shall have printed thereon both Certificates of Registration appearing in Sections 8C and 8D hereof, and both such certifications shall be required to be manually executed in connection with the initial delivery of the Initial Bond(s) to the initial owners and both such certificates appearing on each of the Initial Bond(s), duly 45059652_1.doc 5 • signed, shall be conclusive evidence that such Initial Bond(s) have been duly certified, registered and delivered. SECTION 7: Initial Bond(s). The Bonds herein authorized shall be initially issued either (i) as a single fully registered bond in the total principal amount noted in Section 1 with principal installments to become due and payable as provided in Section 2 hereof and numbered T-1, or (ii) as multiple fully registered bonds, being one bond for each year of maturity in the applicable principal amount and denomination and to be numbered consecutively from T-1 and upward (hereinafter called the "Initial Bond(s)") and, in either case, the Initial Bond(s) shall be registered in the name of the initial owner(s) or the designee thereof. The Initial Bond(s) shall be the Bonds submitted to the Office of the Attorney General of the State of Texas for approval, certified and registered by the Office of the Comptroller of Public Accounts of the State of Texas and delivered to the initial owner(s). Any time after the delivery of the Initial Bond(s), the Paying Agent/Registrar, pursuant to written instructions from the initial owner(s), or the designee thereof, shall cancel the Initial Bond(s) delivered hereunder and exchange therefor definitive Bonds of authorized denominations, Stated Maturities, principal amounts and bearing applicable interest rates for transfer and delivery to the Holders named at the addresses identified therefor; all pursuant to and in accordance with such written instructions from the initial owner(s), or the designee thereof, and such other information and documentation as the Paying Agent/Registrar may reasonably require. SECTION 8: Forms. A. Forms Generally. The Bonds, the Registration Certificate of the Comptroller of Public Accounts of the State of Texas (to be printed on the Initial Bond(s) only), the Certificate of Registration, and the form of Assignment to be printed on each of the Bonds, shall be substantially in the forms set forth in this Section with such appropriate insertions, omissions, substitutions, and other variations as are permitted or required by this Resolution and may have such letters, numbers, or other marks of identification (including identifying numbers and letters of the Committee on Uniform Securities Identification Procedures of the American Bankers Association) and such legends and endorsements (including insurance legends on insured Bonds and any reproduction of an opinion of counsel) thereon as may, consistently herewith, be established by the Board of Directors of the Corporation or determined by the officers executing such Bonds as evidenced by the execution thereof. Any portion of the text of any Bonds may be set forth on the reverse thereof, with an appropriate reference thereto on the face of the Bond. The Bonds, including the Initial Bond(s), shall be typewritten, printed, lithographed, or engraved or produced in any other similar manner, all as determined by the officers executing such Bonds as evidenced by their execution thereof. 45059652_1.doc 6 • B. Form of Bond. REGISTERED REGISTERED NO. $ UNITED STATES OF AMERICA STATE OF TEXAS SOUTHLAKE PARKS DEVELOPMENT CORPORATION TAXABLE SALES TAX THIRD LIEN REVENUE BOND, SERIES 2001-A Issue Date: Interest Rate: Stated Maturity: CUSIP NO: July 15, 2001 6.00% Registered Owner: Principal Amount: DOLLARS The Southlake Parks Development Corporation (hereinafter referred to as the "Corporation"), a non-profit industrial development corporation organized and existing under the laws of the State of Texas, including Section 4B of Article 5190.6, Tex. Rev. Civ. St. Ann., as amended, (the "Act"), with its principal office located in Tarrant County, Texas, for value received, hereby promises to pay to the order of the Registered Owner named above, or the registered assigns thereof, solely from the revenues and sources pledged under the Resolution identified below, the Principal Amount stated above (or so much thereof as shall not have been 111° paid upon prior redemption) on the Stated Maturity date specified above and to pay interest (computed on the basis of a 360-day year of twelve 30-day months) on the unpaid Principal Amount hereof from the interest payment date next preceding the "Registration Date" of this Bond appearing below (unless this Bond bears a "Registration Date" as of an interest payment date, in which case it shall bear interest from such date, or unless this Bond is authenticated prior to February 15, 2002, in which case it shall bear interest from the date of its delivery, or the delivery of a Predecessor Bond, to the initial owners) at the per annum rate of interest specified above; such interest being payable on February 15 and August 15 of each year, commencing February 15, 2002. Principal of this Bond is payable at its Stated Maturity or redemption to the registered owner hereof, upon presentation and surrender, at the Designated Payment/Transfer Office of the Paying Agent/Registrar executing the registration certificate appearing hereon, or its successor. Interest is payable to the registered owner of this Bond (or one or more Predecessor Bonds, as defined in the resolution hereinafter referenced) whose name appears on the "Security Register" maintained by the Paying Agent/Registrar at the close of business on the "Record Date", which is the last business day of the month next preceding each interest payment date and interest shall be paid by the Paying Agent/Registrar by check sent United States Mail, first class postage prepaid, to the address of the registered owner recorded in the Security Register or by such other method, acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, the registered owner. All payments of principal of, premium, if any, and interest on this Bond shall be without exchange or collection charges to the owner hereof and in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts. This Bond is one of the series specified in its title issued in the aggregate principal amount of $1,500,000 (herein referred to as the "Bonds") to finance a park project involving the acquisition of land, buildings, equipment, facilities and improvements required or suitable for use 45059652_1.doc 7 for professional and amateur (including children's) sports, athletic, entertainment, and public• park purposes and events, including stadiums and ball parks (Texas School of Baseball), including the Act, and pursuant to a Resolution adopted by the governing body of the Corporation (herein referred to as the "Resolution"). The Bonds are subject to being redeemed prior to their Stated Maturities, at the option of the Corporation, in whole or in part in principal amounts of $5,000 or any integral multiple thereof (and if within a Stated Maturity by lot by the Paying Agent/Registrar), on any date at the redemption price of par plus accrued interest thereon to the redemption date. At least thirty days prior to a redemption date, the Corporation shall cause a written notice of such redemption to be sent by United States Mail, first class postage prepaid, to the registered owners of the Bond to be redeemed at the address shown on the Security Register and subject to the terms and provisions relating thereto contained in the Resolution. If a Bond (or any portion of its principal sum) shall have been duly called for redemption and notice of such redemption duly given, then upon such redemption date such Bond (or the portion of its principal sum to be redeemed) shall become due and payable, and, if moneys for the payment of the redemption price and the interest accrued on the principal amount to be redeemed to the date of redemption are held for the purpose of such payment by the Paying Agent/Registrar, interest shall cease to accrue and be payable from and after the redemption date on the principal amount of such Bond redeemed. In the event of a portion of the principal amount of a Bond is to be redeemed, payment of the redemption price of such principal amount shall be made to the registered owner only upon presentation and surrender of such Bond to the Designated Payment/Transfer Office of the Paying Agent/Registrar, and a new Bond or Bonds of like maturity and interest rate in any authorized denominations provided by the Resolution for the then unredeemed balance of the principal sum thereof will be issued to the registered owner, without charge. If a Bond is selected for redemption, in whole or in part, the Corporation and the Paying Agent/Registrar shall not be required to transfer such Bond to an assignee of the Holder within 45 days of the redemption date therefor; provided, however, such limitation on transferability shall not be applicable to an exchange by the Holder of the unredeemed balance of a Bond redeemed in part. The Bonds are special obligations of the Corporation payable solely from and equally and ratably secured by a lien on and pledge of the "Pledged Revenues" (as defined in the Resolution) of the Corporation, including the receipts from a Sales Tax levied for the benefit of the Corporation pursuant to the Act; provided, however, the lien on and pledge of the "Pledged Revenues" securing the payment of the Bonds is junior and subordinate to the prior lien on and pledge of such Pledged Revenues securing the payment of Priority Bonds (identified and defined in the Resolution) now outstanding and hereafter issued by the Corporation. The Bonds do not constitute a legal or equitable, pledge, charge, lien or encumbrance upon any property of the Corporation or the City of Southlake, Texas (the "City") except with respect to the "Pledged Revenues". This Bond may not be paid in whole or in part from any property taxes raised or to be raised by the City and is not a debt of and does not give rise to a claim for payment against the City, except as to the sales and use tax revenues held by the City and required under the Act to be paid over to the Corporation. Neither the State of Texas, the City or any political corporation, subdivision or agency of the State of Texas shall be obligated to pay this Bond or the interest hereon and neither the faith and credit nor the taxing power of the State, the City or any other political corporation, subdivision or agency thereof is pledged to the payment of the principal of and interest on this Bond except as noted above. 45059652_1.doc 8 Subject to satisfying the terms and conditions prescribed therefor, the Corporation has• reserved the right to issue additional revenue obligations payable, in whole or in part, from the "Pledged Revenues" and (i) equally and ratably secured by a parity lien on and pledge of such "Pledged Revenues" securing the payment of the Priority Bonds currently outstanding or (ii) equally and ratably secured by the parity lien on and pledge of the "Pledged Revenues" securing the payment of the Bonds. Reference is hereby made to the Resolution, a copy of which is on file in the Designated Payment/Transfer Office of the Paying Agent/Registrar, and to all of the provisions of which the Holder by the acceptance hereof hereby assents, for definitions of terms; the description of and the nature and extent of the security for the payment of the Bonds; the rights of Holders of the Bonds the terms and conditions for the issuance of additional obligations; the terms and conditions relating to the payment, transfer or exchange of this Bond; the conditions upon which the Resolution may be amended or supplemented with or without the consent of the Holders; the rights, duties, and obligations of the Corporation and the Paying Agent/Registrar; the terms and provisions upon which the encumbrances, pledges, charges and covenants made therein may be discharged; and for the other terms and provisions contained therein. Capitalized terms used herein have the same meanings assigned in the Resolution. This Bond, subject to certain limitations contained in the Resolution, may be transferred on the Security Register only upon its presentation and surrender at the Designated Payment/Transfer Office of the Paying Agent/Registrar, with the Assignment hereon duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Paying Agent/Registrar duly executed by, the registered owner hereof, or his duly authorized agent. When a transfer on the Security Register occurs, one or more new fully registered Bonds of the same Stated Maturity, of authorized denominations, bearing the same rate of interest, and of the same aggregate principal amount will be issued by the Paying Agent/Registrar to the designated transferee or transferees. The Corporation and the Paying Agent/Registrar, and any agent of either, may treat the registered owner hereof whose name appears on the Security Register (i) on the Record Date as the owner entitled to payment of interest hereon, (ii) on the date of surrender of this Bond as the owner entitled to payment of principal hereof at its Stated Maturity or its redemption, in whole or in part, and (iii) on any other date as the owner for all other purposes, and neither the Corporation nor the Paying Agent/Registrar, or any agent of either, shall be affected by notice to the contrary. In the event of non-payment of interest on a scheduled payment date and for thirty (30) days thereafter, a new record date for such interest payment (a "Special Record Date") will be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been received from the Corporation. Notice of the Special Record Date and of the scheduled payment date of the past due interest (which shall be 15 days after the Special Record Date) shall be sent at least five (5) business days prior to the Special Record Date by United States Mail, first class postage prepaid, to the address of each Holder appearing on the Security Register at the close of business on the last business day next preceding the date of mailing of such notice. It is hereby certified, recited, represented and covenanted that the Corporation is a non-profit industrial development corporation duly organized and legally existing under and by virtue of the Constitution and laws of the State of Texas, including the Act; that all acts, conditions and things required to exist and be done precedent to and in the issuance of the Bonds to render the same lawful and valid special obligations of the Corporation have been properly done, have happened and have been performed in regular and due time, form and 45059652_1.doc 9 manner as required by law; and that due provision has been made for the payment of the • principal of and interest on the Bonds from the sources and in the manner provided in the Resolution. In case any provision in this Bond or any application thereof shall be invalid, illegal, or unenforceable, the validity, legality, and enforceability of the remaining provisions and applications shall not in any way be affected or impaired thereby. The terms and provisions of this Bond and the Resolution shall be construed in accordance with and shall be governed by the laws of the State of Texas. IN WITNESS WHEREOF, the Board of Directors of the Corporation has caused this Bond to be duly executed under the official seal of the Corporation as of the Issue Date. SOUTHLAKE PARKS DEVELOPMENT CORPORATION President, Board of Directors ATTEST: Secretary, Board of Directors (SEAL) I. 45059652_1.doc 10 C. *Form of Registration Certificate of Comptroller of Public Accounts to Appear on Initial Bonds only. REGISTRATION CERTIFICATE OF COMPTROLLER OF PUBLIC ACCOUNTS OFFICE OF THE COMPTROLLER ) OF PUBLIC ACCOUNTS ) REGISTER NO. THE STATE OF TEXAS I HEREBY CERTIFY that this Bond has been examined, certified as to validity and approved by the Attorney General of the State of Texas, and duly registered by the Comptroller of Public Accounts of the State of Texas. WITNESS my signature and seal of office this Comptroller of Public Accounts of the State of Texas (SEAL) *NOTE TO PRINTER: Do not print on definitive bonds D. Form of Certificate of Paying Agent/Registrar to Appear on definitive Bonds. REGISTRATION CERTIFICATE OF PAYING AGENT/REGISTRAR This Bond has been duly issued and registered in the name of the Registered Owner shown above under the provisions of the within-mentioned Resolution and duly approved, or a Predecessor Bond hereof duly approved, by the Attorney General of the State of Texas and registered by the Comptroller of Public Accounts, as shown by the records of the Paying Agent/Registrar. The designated offices of the Paying Agent/Registrar located in Dallas, Texas, is the "Designated Payment/Transfer Office" for this Bond. THE CHASE MANHATTAN BANK as Paying Agent/Registrar Registration date: By Authorized Signature 45059652_1.doc 1 1 ��.r/3- E. Form of Assignment. • ASSIGNMENT FOR VALUE RECEIVED the undersigned hereby sells, assigns, and transfers unto (Print or typewrite name, address, and zip code of transferee:) (Social Security or other identifying number ) the within Bond and all rights thereunder, and hereby irrevocably constitutes and appoints attorney to transfer the within Bond on the books kept for registration thereof, with full power of substitution in the premises. DATED: NOTICE: The signature on this assignment must correspond with the Signature guaranteed: name of the registered owner as it appears on the face of the within Bond in every particular. F. The Initial Bond(s) shall be in the form set forth in paragraph B of this Section, except that the form of a single fully registered Initial Bond shall be modified as follows: (I) immediately under the name of the bond the headings "Interest Rate " and "Stated Maturity " shall both be omitted;" (ii) Paragraph one shall read as follows: The Southlake Parks Development Corporation (hereinafter referred to as the "Corporation"), a non-profit industrial development corporation organized and existing under the laws of the State of Texas, including Section 4B of Article 5190.6, Tex. Rev. Civ. St. Ann., as amended, (the "Act"), with its principal office located in Tarrant County, Texas, for value received, hereby promises to pay to the order of the Registered Owner named above, or the registered assigns thereof, solely from the revenues and sources pledged under the Resolution identified below, the Principal Amount hereinabove stated on August 15 in each of the years and in principal amounts and bearing interest at per annum rate in accordance with the following schedule: PRINCIPAL INTEREST YEAR INSTALLMENTS RATE (Information to be inserted from schedule in Section 2 hereof). (or so much thereof as shall not have been paid upon prior redemption) and to pay interest (computed on the basis of a 360-day year of twelve 30-day months) on the unpaid Principal Amount hereof from the date of delivery to the initial owners at the per annum rate of interest specified above; such interest being payable on February 15 and August 15 of each year, commencing February 15, 2002. Principal installments of this Bond are payable at its Stated Maturity or on a prepayment date to the registered owner hereof by The Chase Manhattan 45059652_1.doc 12 Bank, Houston, Texas (the "Paying Agent/Registrar"), upon its presentation and surrender, at its • principal offices in Dallas, Texas (the "Designated Payment/Transfer Office"). Interest is payable to the registered owner of this Bond (or one or more Predecessor Bonds, as defined in the resolution hereinafter referenced) whose name appears on the "Security Register" maintained by the Paying Agent/Registrar at the close of business on the "Record Date", which is the last business day of the month next preceding each interest payment date and interest shall be paid by the Paying Agent/Registrar by check sent United States Mail, first class postage prepaid, to the address of the registered owner recorded in the Security Register or by such other method, acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, the registered owner. All payments of principal of, premium, if any, and interest on this Bond shall be without exchange or collection charges to the owner hereof and in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts. SECTION 9: Definitions. For all purposes of this Resolution and in particular for clarity with respect to the issuance of the Bonds herein authorized and the pledge and appropriation of revenues to the payment of the Bonds, the following definitions are provided: "Act" - The Development Corporation Act of 1979, Vernon's Ann. Civ. St., Art. 5190.6, as amended at any time. "Additional Obligations" - Bonds, notes or other evidences of indebtedness which the Corporation reserves the right to issue or enter into, as the case may be, in the future in accordance with the terms and conditions provided in Section 16 hereof and which, together with the Bonds, are equally and ratably secured by a parity pledge of and claim on the Pledged Revenues under the terms of this Resolution and a Supplemental Resolution. "Average Annual Debt Service" - That amount which, at the time of computation, is derived by dividing the total amount of Debt Service to be paid over a period of years as the same is scheduled to become due and payable by the number of years taken into account in determining the total Debt Service. Capitalized interest payments provided from proceeds or borrowings of the Corporation shall be excluded in making the aforementioned computation. "Board" - The Board of Directors of the Corporation. "Bonds" - The "Southlake Parks Development Corporation Taxable Sales Tax Third Lien Revenue Bonds, Series 2001-A", dated July 15, 2001, authorized by this Resolution. "City" - The City of Southlake, Texas. "Corporation" - The Southlake Parks Development Corporation, a non-profit industrial development corporation organized and existing under and pursuant to the laws of the State of Texas, including Section 4B of the Act, with its principal place of business in Tarrant County, Texas. "Debt Service" - As of any particular date of computation, with respect to • any obligations and with respect to any period, the aggregate of the amounts to be paid or set aside by the Corporation as of such date or in such period for the 45059652_1.doc 13 payment of the principal of, premium, if any, and interest (to the extent not capitalized) on such obligations; assuming, in the case of obligations without a fixed numerical rate, that such obligations bear, or would have borne, interest at the maximum legal per annum rate applicable to such obligations, and further assuming in the case of obligations required to be redeemed or prepaid as to principal prior to maturity, the principal amounts thereof will be redeemed prior to maturity in accordance with the mandatory redemption provisions applicable thereto. "Depository" - A commercial bank or other qualified financial institution eligible and qualified to serve as the custodian of the Corporation's monetary accounts and funds. "Fiscal Year" - The twelve month financial accounting period used by the Corporation ending September 30 in each year, or such other twelve consecutive month period established by the Corporation. "Government Obligations" - (i) direct noncallable obligations of the United States of America, including obligations the principal of and interest on which are unconditionally guaranteed by the United States of America, (ii) noncallable obligations of an agency or instrumentality of the United States, including obligations unconditionally guaranteed or insured by the agency or instrumentality and on the date of their acquisition or purchase by the Corporation are rated as to investment quality by a nationally recognized investment rating firm not less than AAA or its equivalent and (iii) noncallable obligations of a state or an agency or a county, municipality, or other political • subdivision of a state that have been refunded and on the date of their acquisition or purchase by the Corporation, are rated as to investment quality by a nationally recognized investment rating firm not less than AAA or its equivalent. "Gross Sales Tax Revenues" - All of the Sales Tax revenues or receipts due or owing to, or collected or received by or on behalf of the Corporation by the City or otherwise pursuant to Section 4B of the Act and the election held November 2, 1993, less any amounts due and owed to the Comptroller of Public Accounts of the State of Texas as charges for the collection of the Sales Tax or retention by said Comptroller for refunds and to redeem dishonored checks and drafts, to the extent such charges and retention are authorized or required by law. "Outstanding" - When used in this Resolution with respect to Bonds or Parity Obligations, as the case may be, means, as of the date of determination, all Bonds and Parity Obligations theretofore sold, issued and delivered by the Corporation, except: (1) those Bonds or Parity Obligations canceled or delivered to the transfer agent or registrar for cancellation in connection with the exchange or transfer of such obligations; (2) those Bonds or Parity Obligations paid or deemed to be paid in accordance with the provisions of Section 22 hereof or similar provisions of any Supplemental Resolution authorizing the issuance of Additional Obligations. 45059652_1.doc 14 (3) those Bonds or Parity Obligations that have been mutilated, destroyed, lost, or stolen and replacement obligations have been registered and delivered in lieu thereof. "Parity Obligations" - Collectively, the Bonds and Additional Obligations. "Pledged Revenues" - Collectively (i) Gross Sales Tax Revenues from time to time deposited or owing to the Pledged Revenue Fund and (ii) such other money, income, revenue, receipts or other property as may be specifically dedicated, pledged or otherwise encumbered in a Supplemental Resolution for the payment and security of Parity Obligations. "Priority Bonds" — Collectively, (a) the outstanding and unpaid (1) "Southlake Parks Development Corporation Refunding and Improvement Sales Tax Revenue Bonds, Series 1997", dated February 15, 1997, and (2) "Southlake Parks Development Corporation Sales Tax Revenue Bonds, Series 1999", dated April 1, 1999, originally issued in the principal amount of $4,655,000 and obligations issued on a parity therewith and (b) the outstanding and unpaid (1) "Southlake Parks Development Corporation Sales Tax Subordinate Lien Revenue Bonds, Series 2000", dated March 1, 2000, originally issued in the principal amount of $4,180,000 and (2) "Southlake Parks Development Corporation Sales Tax Subordinate Lien Revenue Bonds, Series 2001", dated May 15, 2001, originally issued in the principal amount of $4,690,000, and obligations issued on a parity therewith. "Sales Tax" - The local sales and use tax authorized under Section 4B of the Act, approved at an election held on November 2, 1993, and the effective date for the imposition and application of such Sales Tax within the corporate limits of the City by the Comptroller of Public Accounts of the State of Texas being April 1, 1994, together with any increases in the rate of such Sales Tax authorized and provided by law. "Supplemental Resolution" - Any resolution of the Board supplementing this Resolution for the purpose of authorizing and providing the terms and provisions of the Bonds or Additional Obligations, or supplementing or amending this Resolution for any other authorized purpose permitted in Section 16 or 23 hereof, including resolutions authorizing the issuance of Additional Obligations or pledging and encumbering income, revenues, receipts or property other than the Gross Sales Tax Revenues to the payment and security of the Parity Obligations. SECTION 10: Pledge. The Corporation hereby covenants and agrees that, subject only to the prior claim on and pledge of the Pledged Revenues to the payment and security of the Priority Bonds (including the establishment and maintenance of the respective special funds created for the payment and security of such bonds) under the terms and provisions of the resolutions and proceedings pertaining to their authorization, the Pledged Revenues, with the exception of those in excess of the amounts required for the payment and security of the Parity Obligations, are hereby irrevocably pledged to the payment and security of the Bonds and Additional Obligations, if issued, including the establishment and maintenance of the special funds created and established in this Resolution and any Supplemental Resolution, all as hereinafter provided. The Corporation hereby resolves the Parity Obligations shall constitute a lien on the Pledged Revenues in accordance with the terms of this Resolution and any 45059652_1.doc 15 ,526) ! cL7 • Supplemental Resolution, which lien shall be valid and binding without any further action by the Corporation and without any filing or recording with respect thereto except in the records of the Corporation. SECTION 11: Pledged Revenue Fund. In accordance with the provisions of the resolutions authorizing the issuance of the Priority Bonds and while the Bonds are Outstanding, the Corporation hereby agrees and covenants to maintain a fund or account at a Depository for the deposit of the Pledged Revenues as received by the Corporation, which fund or account shall be known on the books and records of the Corporation as the "Pledged Revenue Fund". All Pledged Revenues deposited to the credit of such Fund shall be accounted for separate and apart from all other revenues, receipts and income of the Corporation and, with respect to the Gross Sales Tax Revenues, the Corporation shall further account for such funds separate and apart from the other Pledged Revenues deposited to the credit of the Pledged Revenue Fund. All Pledged Revenues deposited to the credit of the Pledged Revenue Fund shall be appropriated and expended to the extent required by this Resolution and any Supplemental Resolution for the following uses and in the order of priority shown: First: To the payment of the amounts required to be deposited in the special funds and accounts maintained for the payment and security of the Priority Bonds; Second To the payment of the amounts required to be deposited in the Bond Fund for the payment of Debt Service on the Parity Obligations as the same becomes due and payable; S Third: To the payment of amounts required to be deposited in any other fund or account required by any Supplemental Resolution authorizing the issuance of Parity Obligations; and Fourth: To any fund or account held at any place or places, or to any payee, required by any other resolution of the Board which authorized the issuance of obligations or the creation of debt of the Corporation having a lien on the Pledged Revenues subordinate to the lien created herein on behalf of the Parity Obligations. Any Pledged Revenues remaining in the Pledged Revenue Fund after satisfying the foregoing payments, or making adequate and sufficient provision for the payment thereof, may be appropriated and used for any other lawful purpose now or hereafter permitted by law. SECTION 12: Bond Fund. For the purpose of providing funds to pay the principal of and interest on Parity Obligations, the Corporation agrees and covenants to maintain a separate and special account or fund on the books and records of the Corporation known as the "Southlake Parks Development Corporation Third Lien Debt Service Account" (the "Bond Fund"), and all monies deposited to the credit of such Fund shall be held in a special banking fund or account maintained at a Depository of the Corporation. The Corporation covenants that, after paying or making provision for all priority payments for the Priority Bonds, there shall be deposited into the Bond Fund prior to each principal and interest payment date from the Pledged Revenues an amount equal to one hundred per centum (100%) of the interest on and the principal of the Bonds then falling due and payable, and such deposits to pay principal and accrued interest on the Bonds shall be made in substantially equal monthly installments on or before the 10th day of 45059652_1.doc 16 each month, beginning on or before the 10th day of the month next following the delivery of the Bonds to the initial owners. The required deposits to the Bond Fund for the payment of principal of and interest on the Bonds shall continue to be made as hereinabove provided until (i) the total amount on deposit in the Bond Fund is equal to the amount required to fully pay and discharge all Parity Obligations (principal and interest) then Outstanding or (ii) the Bonds are no longer Outstanding. SECTION 13: Deficiencies. If on any occasion there shall not be sufficient Pledged Revenues to make the required deposits into the Bond Fund, such deficiency shall be cured as soon as possible from the next available Pledged Revenues, or from any other sources available for such purpose. SECTION 14: Payment of Bonds. While any of the Bonds are Outstanding, the Treasurer of the Corporation (or other designated financial officer of the Corporation) shall cause to be transferred to the Paying Agent/Registrar, from funds on deposit in the Bond Fund, amounts sufficient to fully pay and discharge promptly as each installment of interest and principal of the Bonds accrues or matures; such transfer of funds to be made in such manner as will cause immediately available funds to be deposited with the Paying Agent/Registrar for the Bonds at the close of the business day next preceding the date of payment for the Bonds. SECTION 15: Investments - Security of Funds. (a) Money in any Fund required to be maintained pursuant to this Resolution may, at the option of the Corporation, be invested in obligations and in the manner prescribed by the Public Funds Investment Act (V.T.C.A., Government Code, Chapter 2256), including investments held in book-entry form; provided that pall such deposits and investments shall be made in such a manner that the money required to be expended from any Fund will be available at the proper time or times. Such investments shall be valued in terms of current market value within 45 days of the close of each Fiscal Year. All interest and income derived from deposits and investments in the Bond Fund immediately shall be credited to, and any losses debited to, the appropriate account of the Bond Fund. All such investments shall be sold promptly when necessary to prevent any default in connection with the Parity Obligations. (b) Money deposited to the credit of the Pledged Revenue Fund and Bond Fund, to the extent not invested and not otherwise insured by the Federal Deposit Insurance Corporation or similar agency, shall be secured by a pledge of direct obligations of the United States of America, or obligations unconditionally guaranteed by the United States of America. SECTION 16: Issuance of Additional Parity Obligations. Subject to the provisions hereinafter appearing as to conditions precedent which must be satisfied, the Corporation reserves the right to issue, from time to time as needed, Additional Obligations for any lawful purpose. Such Additional Obligations may be issued in such form and manner as the Corporation shall determine, provided, however, prior to issuing or incurring such Additional Obligations, the following conditions precedent for the authorization and issuance of the same are satisfied, to wit: (1) The Treasurer of the Corporation (or other officer of the Corporation then having the primary responsibility for the financial affairs of the Corporation) shall have executed a certificate stating that, to the best of his or her knowledge and belief, the Corporation is not then in default as to any 45059652_1.doc 17 covenant, obligation or agreement contained in the Resolution or a Supplemental Resolution. (2) The Corporation has secured from a certified public accountant a certificate or opinion to the effect that, according to the books and records of the Corporation, the Gross Sales Tax Revenues received by the Corporation for either (i) the last completed Fiscal Year next preceding the adoption of the Supplemental Resolution authorizing the issuance of the proposed Additional Obligations or (ii) any twelve (12) consecutive months out of the previous eighteen (18) months next preceding the adoption of the Supplemental Resolution authorizing the Additional Obligations were equal to not less than 1.00 times the maximum annual Debt Service for all Priority Bonds and Parity Obligations then Outstanding and after giving effect to the issuance of the Additional Obligations then being issued. Additionally, for the purpose of providing this certificate or opinion, if the Corporation shall not have received Gross Sales Tax Revenues for a full 12 month period, one-half of the amount of sales tax revenues actually received by the City under Chapter 321, TEX.TAX CODE, may be used for the months during which the Corporation did not receive Gross Sales Tax Revenues. SECTION 17: Refunding Bonds. The Corporation reserves the right to issue refunding bonds to refund all or any part of the Parity Obligations (pursuant to any law then available) upon such terms and conditions as the Board may deem to be in the best interest of the Corporation, and if less than all such Parity Obligations then Outstanding are refunded, the conditions precedent prescribed (for the issuance of Additional Obligations) set forth in Section 16 hereof shall be satisfied, and shall give effect to the refunding. SECTION 18: Right to Issue Additional Priority Bonds - Right to Create Subordinate Debt. The Corporation expressly reserves the right to issue Priority Bonds, without limitation as to principal amount or complying with any terms and conditions contained in this Resolution, but subject to any terms, conditions or restrictions applicable thereto under law or otherwise. Furthermore, except as may be limited by a Supplemental Resolution, the Corporation hereby expressly retains the right to issue or create obligations payable from and secured by a lien on all or any part of the Pledged Revenues for any lawful purpose without complying with the provisions of Section 16 or 17 hereof, provided the pledge and the lien securing the payment of such obligations is junior and subordinate to the lien and pledge securing the payment of the Parity Obligations. SECTION 19: Confirmation and Levy of Sales Tax. (a) The Board hereby represents the City has duly complied with the provisions of the Act for the levy of the Sales Tax at the rate voted at the election held by and within the City on November 2, 1993, and such Sales Tax is being imposed within the corporate limits of the City and the receipts of such Sales Tax are being remitted to the City by the Comptroller of Public Accounts on a monthly basis. (b) While any Bonds are Outstanding, the Corporation covenants, agrees and warrants to take and pursue all action permissible to cause the Sales Tax, at said rate or at a higher rate if legally permitted, to be levied and collected continuously, in the manner and to the maximum extent permitted by law, and to cause no reduction, abatement or exemption in the Sales Tax or rate of tax below the rate stated, confirmed and ordered in subsection (a) of this Section to be ordered or permitted while any Bonds shall remain Outstanding. 45059652_1.doc 18 (c) If hereafter authorized by law to apply, impose and levy the Sales Tax on any taxable items or transactions that are not subject to the Sales Tax on the date of the adoption hereof, to the extent it legally may do so, the Corporation agrees to use its best efforts to cause the City to take such action as may be required to subject such taxable items or transactions to the Sales Tax. (d) The Corporation agrees to take and pursue all action legally permissible to cause the Sales Tax to be collected and remitted and deposited as herein required and as required by Section 4B of the Act, at the earliest and most frequent times permitted by law. (e) The Corporation agrees to use its best efforts to cause the City to comply with Section 4B of the Act and shall cause the Gross Sales Tax Revenues to be deposited to the credit of the Pledged Revenue Fund in their entirety immediately upon receipt by the City. In the alternative and if legally authorized, the Corporation shall, by appropriate notice, direction, request or other legal method, use its good-faith efforts to cause the Comptroller of Public Accounts of the State of Texas (the "Comptroller") to pay all Gross Sales Tax Revenues directly to the Corporation for deposit to the Pledged Revenue Fund. SECTION 20: Records and Accounts. The Corporation hereby covenants and agrees that while any of the Bonds are Outstanding, it will keep and maintain complete records and accounts in accordance with generally accepted accounting principles, and following the close of each Fiscal Year, it will cause an audit of such books and accounts to be made by an independent firm of certified public accountants. Each such audit, in addition to whatever other matters may be thought proper by the accountant, shall particularly include the following: . (1) A statement in reasonable detail regarding the receipt and disbursement of the Pledged Revenues for such Fiscal Year; and (2) A balance sheet for the Corporation as of the end of such Fiscal Year. Such annual audit of the records and accounts of the Corporation shall be in the form of a report and be accompanied by an opinion of the accountant to the effect that such examination was made in accordance with generally accepted auditing standards and contain a statement to the effect that in the course of making the examination necessary for the report and opinion, the accountant obtained no knowledge of any default of the Corporation on the Bonds or in the fulfillment of any of the terms, covenants or provisions of this Resolution, or under any other evidence of indebtedness, or of any event which, with notice or lapse of time, or both, would constitute a failure of the Corporation to comply with the provisions of this Resolution or if, in the opinion of the accountants, any such failure to comply with a covenant or agreement hereof, a statement as to the nature and status thereof shall be included. Copies of each annual audit report shall be furnished upon written request, to any Holders of any of said Bonds. The audits herein required shall be made within 120 days following the close of each Fiscal Year insofar as is possible. 45059652_1.doc 19 The Holders of any Bonds or any duly authorized agent or agents of such Holders shall • have the right to inspect such records, accounts and data of the Corporation during regular business hours. SECTION 21: Representations as to Security for the Bonds. (a) The Corporation represents and warrants that, except for the Priority Bonds and the Parity Obligations, the Pledged Revenues are and will be and remain free and clear of any pledge, lien, charge or encumbrance thereon or with respect thereto prior to, or of equal rank with, the pledge and lien created in or authorized by this Resolution except as expressly provided herein. (b) The Bonds and the provisions of this Resolution are and will be the valid and legally enforceable obligations of the Corporation in accordance with their terms and the terms of this Resolution, subject only to any applicable bankruptcy or insolvency laws or to any laws affecting creditors rights generally. (c) The Corporation shall at all times, to the extent permitted by law, defend, preserve and protect the pledge of the Pledged Revenues and all the rights of the Holders against all claims and demands of all persons whomsoever. (d) The Corporation will take, and use its best efforts to cause the City to take, all steps reasonably necessary and appropriate to collect all delinquencies in the collection of the Sales Tax to the fullest extent permitted by the Act. (e) The provisions, covenants, pledge and lien on and against the Pledged Revenues, as herein set forth, are established and shall be for the equal benefit, protection and S security of the owners and holders of Parity Obligations without distinction as to priority and rights under this Resolution. (f) The Parity Obligations shall constitute special obligations of the Corporation, payable solely from, and equally and ratably secured by a parity pledge of and lien on, the Pledged Revenues, and not from any other revenues, properties or income of the Corporation; such pledge of and lien on the Pledged Revenues being junior and subordinate to the pledge of and lien on the Pledged Revenues securing the payment of the Priority Bonds. The Bonds may not be paid in whole or in part from any property taxes raised or to be raised by the City and shall not constitute debts or obligations of the State or of the City, and the Holders, shall never have the right to demand payment out of any funds raised or to be raised by any system of ad valorem taxation. SECTION 22: Satisfaction of Obligation of Corporation. If the Corporation shall pay or cause to be paid, or there shall otherwise be paid to the Holders, the principal of, premium, if any, and interest on the Bonds, at the times and in the manner stipulated in this Resolution, then the pledge of the Pledged Revenues under this Resolution and all other obligations of the Corporation to the Holders shall thereupon cease, terminate, and be discharged and satisfied. Bonds or any principal amount(s) shall be deemed to have been paid within the meaning and with the effect expressed above in this Section when (i) money sufficient to pay in full such Bonds at maturity or to the redemption date therefor, together with all interest due thereon, shall have been irrevocably deposited with and held in trust by the Paying Agent/Registrar, or an authorized escrow agent, or (ii) Government Obligations shall have been irrevocably deposited in trust with the Paying Agent/Registrar, or an authorized escrow agent, which Government Obligations have been certified by an independent accounting firm to mature as to principal and 45059652_1.doc 20 interest in such amounts and at such times as will insure the availability, without reinvestment, of sufficient money, together with any moneys deposited therewith, if any, to pay when due the Bonds on the Stated Maturities thereof or (if notice of redemption has been duly given or waived or if irrevocable arrangements therefor accepted to the Paying Agent/Registrar have been made) the redemption date thereof. The Corporation covenants that no deposit of moneys or Government Obligations will be made under this Section and no use made of any such deposit which would cause the Bonds to be treated as "arbitrage bonds" within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended, or regulations adopted pursuant thereto. Any moneys so deposited with the Paying Agent/ Registrar, or an authorized escrow agent, and all income from Government Obligations held in trust by the Paying Agent/Registrar, or an authorized escrow agent, pursuant to this Section in excess of the amount required for the payment of the Bonds shall be remitted to the Corporation or deposited as directed by the Corporation. Furthermore, any money held by the Paying Agent/Registrar for the payment of the principal of and interest on the Bonds and remaining unclaimed for a period of three (3) years after the Stated Maturity, or applicable redemption date, of the Bonds such moneys were deposited and are held in trust to pay shall, upon the request of the Corporation, be remitted to the Corporation against a written receipt therefor. Notwithstanding the above and foregoing, any remittance of funds from the Paying Agent/Registrar to the Corporation shall be subject to any applicable unclaimed property laws of the State of Texas. SECTION 23: Resolution a Contract - Amendments. This Resolution shall constitute a contract with the Holders from time to time, be binding on the Corporation, and shall not be amended or repealed by the Corporation while any Bond remains Outstanding except as permitted in this Section. The Corporation, may, without the consent of or notice to any Holders, from time to time and at any time, amend this Resolution in any manner not detrimental to the interests of the Holders, including the curing of any ambiguity, inconsistency, or formal defect or omission herein. In addition, the Corporation may, with the written consent from the owners holding a majority in aggregate principal amount of the Parity Obligations then Outstanding affected thereby, amend, add to, or rescind any of the provisions of this Resolution; provided that, without the written consent of all Holders of Outstanding Bonds effected, no such amendment, addition, or rescission shall (1) extend the time or times of payment of the principal of, premium, if any, and interest on the Bonds, reduce the principal amount thereof, the redemption price therefor, or the rate of interest thereon, or in any other way modify the terms of payment of the principal of, premium, if any, or interest on the Bonds, (2) give any preference to any Bond over any other Bond, or (3) reduce the aggregate principal amount of Bonds or Parity Obligations, as the case may be, required to be held for consent to any such amendment, addition, or rescission. SECTION 24: Mutilated - Destroyed - Lost and Stolen Bonds. In case any Bond shall be mutilated, or destroyed, lost or stolen, the Paying Agent/Registrar may execute and deliver a replacement Bond of like form and tenor, and in the same denomination and bearing a number not contemporaneously outstanding, in exchange and substitution for such mutilated Bond, or in lieu of and in substitution for such destroyed, lost or stolen Bond, only upon the approval of the Corporation and after (i) the filing by the Holder thereof with the Paying Agent/Registrar of evidence satisfactory to the Paying Agent/Registrar of the destruction, loss or theft of such Bond, and of the authenticity of the ownership thereof and (ii) the furnishing to the Paying Agent/Registrar of indemnification in an amount satisfactory to hold the Corporation and the Paying Agent/Registrar harmless. All expenses and charges associated with such indemnity 45059652_1.doc 21 and with the preparation, execution and delivery of a replacement Bond shall be borne by the • Holder of the Bond mutilated, or destroyed, lost or stolen. Every new Bond issued pursuant to this Section in lieu of any mutilated, destroyed, lost, or stolen Bond shall constitute a replacement of the prior obligation of the Corporation, whether or not the mutilated, destroyed, lost, or stolen Bond shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this Resolution equally and ratably with all other Outstanding Bonds. SECTION 25: Notices to Holders - Waiver. Wherever this Resolution provides for notice to Holders of any event, such notice shall be sufficiently given (unless otherwise herein expressly provided) if in writing and sent by United States Mail, first class postage prepaid, to the address of each Holder as it appears in the Security Register. In any case where notice to Holders is given by mail, neither the failure to mail such notice to any particular Holders, nor any defect in any notice so mailed, shall affect the sufficiency of such notice with respect to all other Bonds. Where this Resolution provides for notice in any manner, such notice may be waived in writing by the Holder entitled to receive such notice, either before or after the event with respect to which such notice is given, and such waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the Paying Agent/Registrar, but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver. SECTION 26: Cancellation. All Bonds surrendered for payment, redemption, transfer or exchange, if surrendered to the Paying Agent/Registrar, shall be promptly canceled by it and, if S surrendered to the Corporation, shall be delivered to the Paying Agent/Registrar and, if not already canceled, shall be promptly canceled by the Paying Agent/Registrar. The Corporation may at any time deliver to the Paying Agent/Registrar for cancellation any Bonds previously certified or registered and delivered which the Corporation may have acquired in any manner whatsoever, and all Bonds so delivered shall be promptly canceled by the Paying Agent/Registrar. All canceled Bonds held by the Paying Agent/Registrar shall be destroyed as directed by the Corporation. SECTION 27: Delivery of Bonds in Exchange for Title to Land and Facilities. The Bonds are to be issued to David L. Thorne and Beverly A. Thorne (the "Owners") in exchange for and delivery of a deed conveying unto the City fee simple title to that certain tract of land consisting of acres, more or less, out of the . Furthermore, upon receipt of the deed from the Thornes, the Treasurer of the Corporation/Director of Finance of the City is hereby authorized and directed to cause the same to be filed of record in the Deed Records of Tarrant County, Texas. SECTION 28: Approval and Execution of Financing/Use Agreement with the City. The "Financing/Use Agreement" (the "Agreement") by and between the Corporation and the City, attached hereto as Exhibit B and incorporated herein by reference as a part of this Resolution for all purposes, is hereby approved as to form and content, and such Agreement in substantially the form and substance attached hereto, together with such changes or revisions as may be necessary to accomplish the financing or benefit the Corporation, is hereby authorized to be executed by the President and Secretary of the Board of Directors of the Corporation and as the act and deed of this Board; and such Agreement as executed by said officials shall be deemed approved by the Board and constitute the Agreement herein approved. 45059652_1.doc 22 SECTION 29: Legal Opinion. The obligation of the Owners to accept delivery of the • Bonds is subject to being furnished a final opinion of Fulbright & Jaworski L.L.P., Attorneys, Dallas, Texas, approving such Bonds as to their validity, said opinion to be dated and delivered as of the date of delivery and payment for such Bonds. A true and correct reproduction of said opinion is hereby authorized to be printed on the definitive Bonds. SECTION 30: CUSIP Numbers. CUSIP numbers may be printed or typed on the definitive Bonds. It is expressly provided, however, that the presence or absence of CUSIP numbers on the definitive Bonds shall be of no significance or effect as regards the legality thereof and neither the Corporation nor attorneys approving said Bonds as to legality are to be held responsible for CUSIP numbers incorrectly printed or typed on the definitive Bonds. SECTION 31: Control and Custody of Bonds. The President of the Board shall be and is hereby authorized to take and have charge of all necessary orders and records pending investigation by the Attorney General of the State of Texas, and shall take and have charge and control of the Initial Bond(s) pending the approval thereof by the Attorney General, the registration thereof by the Comptroller of Public Accounts and the delivery thereof to the Owners. Furthermore, the President, Vice President or Secretary of the Board of Directors or the Treasurer of the Corporation, any one or more of said officials, are hereby authorized and directed to furnish and execute such documents and certifications relating to the Corporation and the issuance of the Bonds, as may be necessary for the approval of the Attorney General, registration by the Comptroller of Public Accounts and delivery of the Bonds to the initial owners and, together with the Corporation's financial advisor, general counsel, bond counsel and the S Paying Agent/Registrar, make the necessary arrangements for the delivery of the Initial Bond(s) to the Owners and the initial exchange thereof for definitive Bonds. SECTION 32: Benefits of Resolution. Nothing in this Resolution, expressed or implied, is intended or shall be construed to confer upon any person other than the Corporation, the Paying Agent/Registrar and the Holders, any right, remedy, or claim, legal or equitable, under or by reason of this Resolution or any provision hereof, this Resolution and all its provisions being intended to be and being for the sole and exclusive benefit of the Corporation, the Paying Agent/Registrar and the Holders. SECTION 33: Inconsistent Provisions. All orders or resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Resolution are hereby repealed to the extent of such conflict and the provisions of this Resolution shall be and remain controlling as to the matters contained herein. SECTION 34: Governing Law. This Resolution shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. SECTION 35: Severability. If any provision of this Resolution or the application thereof to any circumstance shall be held to be invalid, the remainder of this Resolution and the application thereof to other circumstances shall nevertheless be valid, and the Board hereby declares that this Resolution would have been enacted without such invalid provision. SECTION 36: Construction of Terms. If appropriate in the context of this Resolution, words of the singular number shall be considered to include the plural, words of the plural 45059652_1.doc 23 number shall be considered to include the singular, and words of the masculine, feminine or • neuter gender shall be considered to include the other genders. SECTION 37: Public Meeting. It is officially found, determined, and declared that the meeting at which this Resolution is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Resolution, was given, all as required by V.T.C.A., Government Code, Chapter 551, as amended. SECTION 38: Effective Date. This Resolution shall be in force and effect from and after its passage on the date shown below. PASSED AND ADOPTED, this July 17, 2001. SOUTHLAKE PARKS DEVELOPMENT CORPORATION President, Board of Directors ATTEST: Secretary, Board of Directors (Corporation Seal) 45059652_1.doc 24 PAYING AGENT/REGISTRAR AGREEMENT • THIS AGREEMENT entered into as of July 17, 2001 (this "Agreement"), by and between the Southlake Parks Development Corporation (the "Issuer"), and The Chase Manhattan Bank, a New York banking corporation organized and existing under the laws of the State of New York and authorized to do business in the State of Texas (the "Bank"), RECITALS WHEREAS, the Issuer has duly authorized and provided for the issuance of its "Southlake Parks Development Corporation Taxable Sales Tax Third Lien Revenue Bonds, Series 2001-A" (the "Securities") in the aggregate principal amount of $1,500,000, which Securities are scheduled to be delivered to the initial purchasers on or about September 4, 2001; and WHEREAS, the Issuer has selected the Bank to serve as Paying Agent/Registrar in connection with the payment of the principal of, premium, if any, and interest on said Securities and with respect to the registration, transfer and exchange thereof by the registered owners thereof; and WHEREAS, the Bank has agreed to serve in such capacities for and on behalf of the Issuer and has full power and authority to perform and serve as Paying Agent/Registrar for the Securities; NOW, THEREFORE, it is mutually agreed as follows: . ARTICLE ONE APPOINTMENT OF BANK AS PAYING AGENT AND REGISTRAR Section 1.01. Appointment. The Issuer hereby appoints the Bank to serve as Paying Agent with respect to the Securities, and, as Paying Agent for the Securities, the Bank shall be responsible for paying on behalf of the Issuer the principal, premium (if any), and interest on the Securities as the same become due and payable to the registered owners thereof; all in accordance with this Agreement and the "Bond Resolution" (hereinafter defined). The Issuer hereby appoints the Bank as Registrar with respect to the Securities and, as Registrar for the Securities, the Bank shall keep and maintain for and on behalf of the Issuer books and records as to the ownership of said Securities and with respect to the transfer and exchange thereof as provided herein and in the "Bond Resolution". The Bank hereby accepts its appointment, and agrees to serve as the Paying Agent and Registrar for the Securities. Section 1.02. Compensation. As compensation for the Bank's services as Paying Agent/Registrar, the Issuer hereby agrees to pay the Bank the fees and amounts set forth in Annex A attached hereto for the first year of this Agreement and thereafter the fees and amounts set forth in the Bank's current fee schedule then in effect for services as Paying Agent/Registrar for municipalities, which shall be supplied to the Issuer on or before 90 days prior to the close of the Fiscal Year of the Issuer, and shall be effective upon the first day of the following Fiscal Year. 45059872_1.doc 1 In addition, the Issuer agrees to reimburse the Bank upon its request for all reasonable • expenses, disbursements and advances incurred or made by the Bank in accordance with any of the provisions hereof (including the reasonable compensation and the expenses and disbursements of its agents and counsel). ARTICLE TWO DEFINITIONS Section 2.01. Definitions. For all purposes of this Agreement, except as otherwise expressly provided or unless the context otherwise requires: "Acceleration Date" on any Security means the date on and after which the principal or any or all installments of interest, or both, are due and payable on any Security which has become accelerated pursuant to the terms of the Security. "Bank Office" means the designated office of the Bank as indicated in Section 3.01 hereof. The Bank will notify the Issuer in writing of any change in location of the Bank Office. "Bond Resolution" means the resolution, order, or ordinance of the governing body of the Issuer pursuant to which the Securities are issued, certified by the Secretary or any other officer of the Issuer and delivered to the Bank. 110 "Fiscal Year" means the fiscal year of the Issuer, ending September 30th. "Holder" and "Security Holder" each means the Person in whose name a Security is registered in the Security Register. "Issuer Request" and "Issuer Order" means a written request or order signed in the name of the Issuer by the President, Vice President or Secretary of the Board of Directors or Treasurer of the Corporation, any one or more of said officials, and delivered to the Bank. "Legal Holiday" means a day on which the Bank is required or authorized to be closed. "Person" means any individual, corporation, partnership, joint venture, association, joint stock company, trust, unincorporated organization or government or any agency or political subdivision of a government. "Predecessor Securities" of any particular Security means every previous Security evidencing all or a portion of the same obligation as that evidenced by such particular Security (and, for the purposes of this definition, any mutilated, lost, destroyed, or stolen Security for which a replacement Security has been registered and delivered in lieu thereof pursuant to Section 4.06 hereof and the Resolution). 45059872_1.doc 2 "Redemption Date" when used with respect to any Security to be redeemed means the date fixed for such redemption pursuant to the terms of the Bond Resolution. "Responsible Officer" when used with respect to the Bank means the Chairman or Vice-Chairman of the Board of Directors, the Chairman or Vice-Chairman of the Executive Committee of the Board of Directors, the President, any Vice President, the Secretary, any Assistant Secretary, the Treasurer, any Assistant Treasurer, the Cashier, any Assistant Cashier, any Trust Officer or Assistant Trust Officer, or any other officer of the Bank customarily performing functions similar to those performed by any of the above designated officers and also means, with respect to a particular corporate trust matter, any other officer to whom such matter is referred because of his knowledge of and familiarity with the particular subject. "Security Register" means a register maintained by the Bank on behalf of the Issuer providing for the registration and transfers of Securities. "Stated Maturity" means the date specified in the Bond Resolution the principal of a Security is scheduled to be due and payable. Section 2.02. Other Definitions. The terms "Bank," "Issuer," and "Securities (Security)" have the meanings assigned to them in the recital paragraphs of this Agreement. The term "Paying Agent/Registrar" refers to the Bank in the performance of the duties Pand functions of this Agreement. ARTICLE THREE PAYING AGENT Section 3.01. Duties of Paying Agent. As Paying Agent, the Bank shall, provided adequate collected funds have been provided to it for such purpose by or on behalf of the Issuer, pay on behalf of the Issuer the principal of each Security at its Stated Maturity, Redemption Date, or Acceleration Date, to the Holder upon surrender of the Security to the Bank at the following address: P. O. Box 2320, Dallas, Texas 75221-2320 or 2001 Bryan Street, 9th Floor, Dallas, Texas 75201, Attention: Institutional Trust Services. As Paying Agent, the Bank shall, provided adequate collected funds have been provided to it for such purpose by or on behalf of the Issuer, pay on behalf of the Issuer the interest on each Security when due, by computing the amount of interest to be paid each Holder and making payment thereof to the Holders of the Securities (or their Predecessor Securities) on the Record Date. All payments of principal and/or interest on the Securities to the registered owners shall be accomplished (1) by the issuance of checks, payable to the registered owners, drawn on the fiduciary account provided in Section 5.05 hereof, sent by United States mail, first class, postage prepaid, to the address appearing on the Security Register or (2) by such other method, acceptable to the Bank, requested in writing by the Holder at the Holder's risk and expense. Section 3.02. Payment Dates. The Issuer hereby instructs the Bank to pay the principal of and interest on the Securities at the dates specified in the Bond Resolution. 45059872_1.doc 3 5A28 ARTICLE FOUR • REGISTRAR Section 4.01. Security Register - Transfers and Exchanges. The Bank agrees to keep and maintain for and on behalf of the Issuer at the Bank Office books and records (herein sometimes referred to as the "Security Register") for recording the names and addresses of the Holders of the Securities, the transfer, exchange and replacement of the Securities and the payment of the principal of and interest on the Securities to the Holders and containing such other information as may be reasonably required by the Issuer and subject to such reasonable regulations as the Issuer and Bank may prescribe. All transfers, exchanges and replacement of Securities shall be noted in the Security Register. Every Security surrendered for transfer or exchange shall be duly endorsed or be accompanied by a written instrument of transfer, the signature on which has been guaranteed by an officer of a federal or state bank or a member of the National Association of Securities Dealers, in form satisfactory to the Bank, duly executed by the Holder thereof or his agent duly authorized in writing. The Bank may request any supporting documentation it feels necessary to effect a re-registration, transfer or exchange of the Securities. To the extent possible and under reasonable circumstances, the Bank agrees that, in relation to an exchange or transfer of Securities, the exchange or transfer by the Holders thereof will be completed and new Securities delivered to the Holder or the assignee of the Holder in not more than three (3) business days after the receipt of the Securities to be cancelled in an exchange or transfer and the written instrument of transfer or request for exchange duly executed by the Holder, or his duly authorized agent, in form and manner satisfactory to the Paying Agent/Registrar. Section 4.02. Certificates. The Issuer shall provide an adequate inventory of printed Securities to facilitate transfers or exchanges thereof. The Bank covenants that the inventory of printed Securities will be kept in safekeeping pending their use and reasonable care will be exercised by the Bank in maintaining such Securities in safekeeping, which shall be not less than the care maintained by the Bank for debt securities of other governments or corporations for which it serves as registrar, or that is maintained for its own securities. Section 4.03. Form of Security Register. The Bank, as Registrar, will maintain the Security Register relating to the registration, payment, transfer and exchange of the Securities in accordance with the Bank's general practices and procedures in effect from time to time. The Bank shall not be obligated to maintain such Security Register in any form other than those which the Bank has currently available and currently utilizes at the time. The Security Register may be maintained in written form or in any other form capable of being converted into written form within a reasonable time. Section 4.04. List of Security Holders. The Bank will provide the Issuer at any time requested by the Issuer, upon payment of the required fee, a copy of the information contained in the Security Register. The Issuer may also inspect the information contained in the Security Register at any time the Bank is customarily open for business, provided that reasonable time is allowed the Bank to provide an up-to-date listing or to convert the information into written form. 45059872_1.doc 4 The Bank will not release or disclose the contents of the Security Register to any person other than to, or at the written request of, an authorized officer or employee of the Issuer, except upon receipt of a court order or as otherwise required by law. Upon receipt of a court order and prior to the release or disclosure of the contents of the Security Register, the Bank will notify the Issuer so that the Issuer may contest the court order or such release or disclosure of the contents of the Security Register. Section 4.05. Return of Cancelled Certificates. The Bank will, at such reasonable intervals as it determines, surrender to the Issuer, Securities in lieu of which or in exchange for which other Securities have been issued, or which have been paid. Section 4.06. Mutilated, Destroyed, Lost or Stolen Securities. The Issuer hereby instructs the Bank, subject to the provisions of Section 24 of the Bond Resolution, to deliver and issue Securities in exchange for or in lieu of mutilated, destroyed, lost, or stolen Securities as long as the same does not result in an overissuance. In case any Security shall be mutilated, or destroyed, lost or stolen, the Bank may execute and deliver a replacement Security of like form and tenor, and in the same denomination and bearing a number not contemporaneously outstanding, in exchange and substitution for such mutilated Security, or in lieu of and in substitution for such destroyed lost or stolen Security, only upon the approval of the Issuer and after (i) the filing by the Holder thereof with the Bank of evidence satisfactory to the Bank of the destruction, loss or theft of such Security, and of the authenticity of the ownership thereof and (ii) the furnishing to the Bank of indemnification in an amount satisfactory to hold the Issuer and the Bank harmless. All expenses and charges associated with such indemnity and with the preparation, execution and p delivery of a replacement Security shall be borne by the Holder of the Security mutilated, or destroyed, lost or stolen. Section 4.07. Transaction Information to Issuer. The Bank will, within a reasonable time after receipt of written request from the Issuer, furnish the Issuer information as to the Securities it has paid pursuant to Section 3.01, Securities it has delivered upon the transfer or exchange of any Securities pursuant to Section 4.01, and Securities it has delivered in exchange for or in lieu of mutilated, destroyed, lost, or stolen Securities pursuant to Section 4.06. ARTICLE FIVE THE BANK Section 5.01. Duties of Bank. The Bank undertakes to perform the duties set forth herein and agrees to use reasonable care in the performance thereof. Section 5.02. Reliance on Documents, Etc. (a) The Bank may conclusively rely, as to the truth of the statements and correctness of the opinions expressed therein, on certificates or opinions furnished to the Bank. (b) The Bank shall not be liable for any error of judgment made in good faith by a Responsible Officer, unless it shall be proved that the Bank was negligent in ascertaining the pertinent facts. (c) No provisions of this Agreement shall require the Bank to expend or risk its own funds or otherwise incur any financial liability for performance of any of its duties hereunder, or in the exercise of any of its rights or powers, if it shall have reasonable grounds for believing 45059872_1.doc 5 s/t930 that repayment of such funds or adequate indemnity satisfactory to it against such risks or iliability is not assured to it. (d) The Bank may rely and shall be protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, note, security, or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties. Without limiting the generality of the foregoing statement, the Bank need not examine the ownership of any Securities, but is protected in acting upon receipt of Securities containing an endorsement or instruction of transfer or power of transfer which appears on its face to be signed by the Holder or an agent of the Holder. The Bank shall not be bound to make any investigation into the facts or matters stated in a resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, note, security, or other paper or document supplied by Issuer. (e) The Bank may consult with counsel, and the written advice of such counsel or any opinion of counsel shall be full and complete authorization and protection with respect to any action taken, suffered, or omitted by it hereunder in good faith and in reliance thereon. (f) The Bank may exercise any of the powers hereunder and perform any duties hereunder either directly or by or through agents or attorneys of the Bank. Section 5.03. Recitals of Issuer. The recitals contained herein with respect to the Issuer and in the Securities shall be taken as the statements of the Issuer, and the Bank assumes no responsibility for their correctness. 111) The Bank shall in no event be liable to the Issuer, any Holder or Holders of any Security, or any other Person for any amount due on any Security from its own funds. Section 5.04. May Hold Securities. The Bank, in its individual or any other capacity, may become the owner or pledgee of Securities and may otherwise deal with the Issuer with the same rights it would have if it were not the Paying Agent/Registrar, or any other agent. Section 5.05. Moneys Held by Bank - Paying agent Account/Collateralization. A paying agent account shall at all times be kept and maintained by the Bank for the receipt, safekeeping and disbursement of moneys received from the Issuer hereunder for the payment of the Securities, and money deposited to the credit of such account until paid to the Holders of the Securities shall be continuously collateralized by securities or obligations which qualify and are eligible under both the laws of the State of Texas and the laws of the United States of America to secure and be pledged as collateral for paying agent accounts to the extent such money is not insured by the Federal Deposit Insurance Corporation. Payments made from such account shall be made by check drawn on such account unless the owner of such Securities shall, at its own expense and risk, request such other medium of payment. The Bank shall be under no liability for interest on any money received by it hereunder. Subject to the applicable unclaimed property laws of the State of Texas, any money deposited with the Bank for the payment of the principal, premium (if any), or interest on any Security and remaining unclaimed for three years after final maturity of the Security has become due and payable will be paid by the Bank to the Issuer, and the Holder of such Security shall 45059872_1.doc 6 ✓4^$/ thereafter look only to the Issuer for payment thereof, and all liability of the Bank with respect to • such moneys shall thereupon cease. Section 5.06. Indemnification. To the extent permitted by law, the Issuer agrees to indemnify the Bank for, and hold it harmless against, any loss, liability, or expense incurred without negligence or bad faith on its part, arising out of or in connection with its acceptance or administration of its duties hereunder, including the cost and expense against any claim or liability in connection with the exercise or performance of any of its powers or duties under this Agreement. Section 5.07. Interpleader. The Issuer and the Bank agree that the Bank may seek adjudication of any adverse claim, demand, or controversy over its person as well as funds on deposit, in either a Federal or State District Court located in the State and County where either the Bank Office or the administrative offices of the Issuer is located, and agree that service of process by certified or registered mail, return receipt requested, to the address referred to in Section 6.03 of this Agreement shall constitute adequate service. The Issuer and the Bank further agree that the Bank has the right to file a Bill of Interpleader in any court of competent jurisdiction to determine the rights of any Person claiming any interest herein. Section 5.08. DT Services. It is hereby represented and warranted that, in the event the Securities are otherwise qualified and accepted for "Depository Trust Company" services or equivalent depository trust services by other organizations, the Bank has the capability and, to the extent within its control, will comply with the "Operational Arrangements", which establishes requirements for securities to be eligible for such type depository trust services, including, but not limited to, requirements for the timeliness of payments and funds availability, transfer turnaround time, and notification of redemptions and calls. ARTICLE SIX MISCELLANEOUS PROVISIONS Section 6.01. Amendment. This Agreement may be amended only by an agreement in writing signed by both of the parties hereto. Section 6.02. Assignment. This Agreement may not be assigned by either party without the prior written consent of the other. Section 6.03. Notices. Any request, demand, authorization, direction, notice, consent, waiver, or other document provided or permitted hereby to be given or furnished to the Issuer or the Bank shall be mailed or delivered to the Issuer or the Bank, respectively, at the addresses shown on page 9. Section 6.04. Effect of Headings. The Article and Section headings herein are for convenience only and shall not affect the construction hereof. Section 6.05. Successors and Assigns. All covenants and agreements herein by the Issuer shall bind its successors and assigns, whether so expressed or not. Section 6.06. Severability. In case any provision herein shall be invalid, illegal, or unenforceable, the validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 45059872_1.doc 7 Section 6.07. Benefits of Agreement. Nothing herein, express or implied, shall give to • any Person, other than the parties hereto and their successors hereunder, any benefit or any legal or equitable right, remedy, or claim hereunder. Section 6.08. Entire Agreement. This Agreement and the Bond Resolution constitute the entire agreement between the parties hereto relative to the Bank acting as Paying Agent/Registrar and if any conflict exists between this Agreement and the Bond Resolution, the Bond Resolution shall govern. Section 6.09. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original and all of which shall constitute one and the same Agreement. Section 6.10. Termination. This Agreement will terminate (i) on the date of final payment of the principal of and interest on the Securities to the Holders thereof or (ii) may be earlier terminated by either party upon sixty (60) days written notice; provided, however, an early termination of this Agreement by either party shall not be effective until (a) a successor Paying Agent/Registrar has been appointed by the Issuer and such appointment accepted and (b) notice given to the Holders of the Securities of the appointment of a successor Paying Agent/Registrar. Furthermore, the Bank and Issuer mutually agree that the effective date of an early termination of this Agreement shall not occur at any time which would disrupt, delay or otherwise adversely affect the payment of the Securities. Upon an early termination of this Agreement, the Bank agrees to promptly transfer and deliver the Security Register (or a copy thereof), together with other pertinent books and records relating to the Securities, to the successor Paying Agent/Registrar designated and appointed by the Issuer. The provisions of Section 1.02 and of Article Five shall survive and remain in full force and effect following the termination of this Agreement. Section 6.11. Governing Law. This Agreement shall be construed in accordance with and governed by the laws of the State of Texas. 45059872_1.doc 8 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the • day and year first above written. THE CHASE MANHATTAN BANK BY Title: [SEAL] Address: Attest: 600 Travis, Suite 1150 Houston, Texas 77002 Title: SOUTHLAKE PARKS DEVELOPMENT CORPORATION President, Board of Directors (CORPORATION SEAL) Address: 667 N. Carroll Avenue Attest: Southlake, Texas 76092 Secretary, Board of Directors 45059872_1.doc 9 ' City of Southlake, Texas MEMORANDUM . July 12, 2001 TO: Billy Campbell, City Manager FROM: Kevin Hugman, Director of Community Services (x1527) SUBJECT: Resolution No. 01-051, Authorizing Application for a Texas Recreation and Parks Account Program (TRPA) Indoor Recreation Grant from the Texas Parks and Wildlife Department. Action Requested: SPDC recommendation to City Council to submit Texas Recreation and Parks Account Program (TRPA) Indoor Recreation Grant application to the Texas Parks and Wildlife Department(TPWD). Background Information: At the regular City Council meeting on June 5, 2001, the Council gave staff direction to limit the scope of services with Brinkley Sargent Architects to that of providing the necessary drawings (schematic site plan and floor plan) and documentation (preliminary floor space and cost estimates) for submission of a grant application in an amount up to $750,000 to TPWD for the proposed Southlake Recreation Center. m Brinkley Sargent was able to recently provide these instruments to staff for Park Board, SPDC and Council review prior to the application deadline of July 31, 2001, and they are enclosed with this memo. Please note that the conceptual facility floor plan and cost estimates are for a 36,455 square foot facility at an estimated $5,659,089 (including 10% contingency) construction cost. Financial Considerations: The revised scope of services with Brinkley Sargent architects for the grant application documents is for $11,000, to be counted against any future balance for full professional design services, which are generally in the 10% range of the total construction costs. SPDC and City Council have previously approved a Recreation Center construction budget of$5,700,000 ($700,000 in FY 01-02, $5,000,000 in FY 02-03). The City is currently pursuing a matching funds grant from TPWD in amount up to $750,000. Citizen Input/ I Board Review: The Park Board will consider this item at their Monday, July 16, 2001, meeting. The SPDC will also consider this item prior to the City Council meeting on July 17, 2001. Legal Review: Not Applicable. LPG- \ Billy Campbell, City Manager July 12, 2001 Page 2 Alternatives: SPDC review and input. Supporting Documents: Supporting documents include the following: • Resolution No. 01-051, Authorizing Application for a Texas Recreation and Parks Account Program (TRPA) Indoor Recreation Grant from the Texas Parks and Wildlife Department. • Schematic site plan and floor plans for proposed Recreation Center • Preliminary floor space program and budget for proposed Recreation Center Staff Recommendation: SPDC recommendation to City Council to submit Texas Recreation and Parks Account Program (TRPA) Indoor Recreation Grant to the Texas Parks and Wildlife Department (TPWD). • Billy Campbell, City Manager July 12, 2001 ■ Page 3 RESOLUTION NO. 01-051 RESOLUTION AUTHORIZING APPLICATION TEXAS RECREATION AND PARKS ACCOUNT PROGRAM(TRPA) A RESOLUTION OF THE CITY OF SOUTHLAKE, TEXAS, HEREINAFTER REFERRED TO AS "APPLICANT," DESIGNATING CERTAIN OFFICIALS AS BEING RESPONSIBLE FOR, ACTING FOR, AND ON BEHALF OF THE "APPLICANT" IN DEALING WITH THE TEXAS PARKS AND WILDLIFE DEPARTMENT, HEREINAFTER REFERRED TO AS THE "DEPARTMENT," FOR THE PURPOSE OF PARTICIPATING IN THE TEXAS RECREATION & PARKS ACCOUNT GRANT PROGRAM, HEREINAFTER REFERRED TO AS THE "PROGRAM;" CERTIFYING THAT THE "APPLICANT" IS ELIGIBLE TO RECEIVE PROGRAM ASSISTANCE; CERTIFYING THAT THE "APPLICANT" MATCHING SHARE IS READILY AVAILABLE; AND DEDICATING THE PROPOSED SITE FOR PERMANENT PUBLIC PARK AND RECREATIONAL USES. WHEREAS, the Texas Legislature has approved the "Program" (Section 24 of the Parks & Wildlife Code for the purpose of allowing the political subdivisions of the State of Texas to participate in the Program; and WHEREAS,the "Applicant"is fully eligible to receive assistance under the "Program"; and WHEREAS,the "Applicant" is desirous of authorizing an official to represent and act for the"Applicant"in dealing with the "Department"concerning the"Program"; BE IT RESOLVED BY THE"APPLICANT": SECTION 1: That the "Applicant" hereby certifies that they are eligible to receive assistance under the "Program". SECTION 2: That the "Applicant" hereby certifies that the matching share for this application is readily available at this time. SECTION 3: That the "Applicant"hereby authorizes and directs its Director of Community Services to act for. the Applicant in dealing with the "Department" for the purpose of the "Program", and Kevin Hugman, Director of Community Services is hereby officially designated as the representative in this regard. SECTION 4: The "Applicant" hereby specifically authorizes the official to make application to the "Department" concerning the site to be known as The City of Southlake Recreation Center in the City of Southlake for use as a park site. That the City of Southlake Recreation Center is hereby dedicated(or will be dedicated upon completion of the proposed acquisition) for public park and recreation purposes in perpetuity. Introduced,read and passed by the affirmation vote of the "Applicant" on this day of July, 2001. Signature of Authorized Official Name and Title Attest SOUTHLAKE RECREATION CENTER PRELIMINARY PROGRAM AREAS July 11, 2001 Number of Area Name Staff Size Unit Area spaces Area Lobby Waiting 500 Toilets 130 2 260 Control/Checkout Desk 2 10x12 120 1 120 Storage Room 10x12 120 1 120 Office 1 10x13 130 1 130 Staff Desks 2 6x10 60 2 120 Work/Copy 6x9 54 1 54 Net Area 1,304 25%Circulation of Gross Area (NET/75)*25 435 Gross area of this Activity 1,739 Community Services Offices Director Office I 12X18 216 1 216 Admin. Sec 10x10 100 1 100 Waiting 10x20 200 1 200 Conference(10) 12X16 192 1 192 Work/Copy 10x 10 100 1 100 Break(6)/lockers(12) 15X15 225 1 225 Work Room(5 Stations) 480 I 480 Storage Room 150 1 150 Recreation Staff 12X16 192 5 960 - Net Area 2,623 20%Circulation of Gross Area (NET/80)*20 656 Gross area of this Activity 3,279 Toilets/Lockers Toilets/Lockers 1,200 Family Changing 8x10 80 2 160 Net Area 1,360 25%Circulation of Gross Area (NET/75)*25 453 Gross area of this Activity 1,813 Gameroom Gameroom 34x46 1564 1 1,564 Vending 13x26 338 1 338 Net Area 1,902 15%Circulation of Gross Area (NET/85)*15 336 Gross area of this Activity 1,902 Gym Basketball Courts(2) 10000 1 10,000 Seating 6x53 159 2 318 Storage 15x25 375 1 375 I' Net Area 10,693 10%Circulation of Gross Area (NET/90)*10 1,183 Gross area of this Activity 11,881 96013\P2\SQFTB-29.xls o - 4 • SOUTHLAKE RECREATION CENTER PRELIMINARY PROGRAM AREAS July 11, 2001 Number of Area Name Staff Size Unit Area spaces Area Walking/Running Track 10x400 4000 1 4,000 Stretching Area 9x58 522 1 522 Net Area 4,522 10%Circulation of Gross Area (NET/90)*10 502 Gross area of this Activity 5,024 Other Activity Areas Aerobics Room(24) 1700 1 1,700 Storage room 20x10 200 1 200 Cardiovascular/Weights 3500 1 3,500 Meeting Room(100) 15 100 1,500 Divider Wall 25 2 50 Storage Alcove 8x12 96 1 96 Kitchenette 5x12 60 1 60 Climbing Wall 200 1 200 Toilets(singles) 6x9 54 2 108 Net Area 7,414 20%Circulation of Gross Area (NET/80)*20 1,854 Gross area of this Activity 9,268 Other Areas Baby-sitting/Toddler Waiting 25x32 800 1 800 Storage Room 7x8 56 1 56 _ Toilet(child size) 5x8 40 1 40 Net Area 896 20%Circulation of Gross Area (NET/80)*20 224 Gross area of this Activity 1,120 Building Support Janitor Closet 9x 13 117 1 117 Mechanical 10x10 100 1 100 Electrical 9x12 , 108 1 108 Phone/Data 5x8 40 1 40 Net Area 365 15%Circulation of Gross Area (NET/85)*15 64 Gross area of this Activity 429 TOTAL BUILDING 36,455 I 96013\P 2\S Q FT8-29.xl s (b —s SOUTHLAKE RECREATION CENTER PRELIMINARY PROGRAM AREAS July ll,2001 BUDGET Building Construction Costs S.F. Recreation Center 36,455 84,374,626 Sub Total Building Construction Costs $4,374,626 Furnishings&Equipment Unique Spaces Game Room $10,000 Office FF&E $110,000 General Equipment $240,000 Subtotal $360,000 Site Construction Costs(parking lot,landscaping,utilities,walks) Parking and paving $180,000 Landscape 880,000 Utilities $150,000 Subtotal $410,000 Sub Total Estimated Project Costs: 85,144,626 Contingency $514,463 Bidding,Construction &Inflation 10% Total Construction Costs: $5,659,089 Note:Cost Based on a March 2002 Bid Date I 960131P21SQFTB-29.xIs cD- --- --1.71 — I—__ I I_ I I I nef (f) 1---- - i I I ________fr }........• 1.11 - -- -- 1-• Phase I ‘.., Li-1 (:-P--_._ 0 ----0--- -1-': *-------0) 1-- 6, L. ,7141 z Z LIA 8 Spaces 35 Spaces 1J 1.-- I 411__ S I V 0 Et . 1 ! _.., N, 30 Spaces ----—I ri _ _ ___ i t Future , . 1 L --1 .. piy.p-v-i re---V iii4 ei 14 Spaces I , 1 Cardio/ i ! Weights i Walken' g Track------- ; I 1 . .1 < w r . . ....1 I LJ-J I Ce Z Ail rx ---• - 1 - - 1 i i • 1 U 03 Vill Library I _Toil_itANI i I Lil II Illir • 15 Spaces I__ — Gimeroom i il I CD (NI 11-1 c-1 ' -.7-' Sl---.6 B4bysitting C°n1munit: >- Services j i Staff Parking/ I 12 Spaces Service Drive I .„ r---' - 1 1 Hike & Bike tr'4'tfl- 4 . .,. v Aerobics ' .. . ,'.. e Trail _ . . se I a: Hike & Bike O 1 H. Ln / D i Trail / 0 Southlake Rec Center Level /) i 0 7:1 w -r s 7I9. 4 • =scr Hoor,lan 5A---1 ' ' A.45?...s - Phase I Parking - 114 yaces (j) til -- r -----b. IC_ I MOIL_ W u I- Z U L.L_l u U a r 3114 Z C9 Lockers 0 IX 44 --{ Gym fn _ Storage I j +.'n'"` Climbing wall WII 4 1 L� 40 z . Meeting - U [II tQ Rooms u.J 1 1- L.G.. I CD CV 1 L.L 1 /N O Southlake Rec Center (Level 1) i Q l =yo' Floor Plan 2 1 O I I C ^.6 5A I (./ 3 IN I OIL_ — ------- — — — — -y SOuthlake Blvd. —7--- ----- —— — — 1 I ___,j I i____ _______ ____,-) r,,,.. Z = 1 1 i 11 — 11 I 1 v , 1 w ° Z cr I i I I I °1 I t_ _� uQ I I m ! I- I I I i 1 I 1 I i 7 w L_ — ILI - _ 1_ r > I -- � - - - I, I [ i -1 -- 1F -., . - —, . ---1 �, N I ,---1_ Q d' I W I lMe ` {pI1 Recration CuerJ '7 I ` I; f t re is __, :3_!i i�3: (a TI L------E 1 140 w d \ u\s; „el:71. l (,� O I f F.e i t ... CNI CD � VW 1 w t� tit �� 9 r— I _ o �. (..:— 1 /� ISouthlake Rec Center (-�. I = 4 4 ► H.eie Site Plan '"' ../ 1 O I 11 N d 1 D it J m , L -J 3 11:::- :1)..1°Qce Ov ::ilif\ MS I 0 111 II L • -�; Southiake Parks Development Corporation o�tnia - Purchase of "Texas School of Baseball" Through Issuance of Taxable Sales Tax Junior Lien Revenue Bonds, Series 2001 July 17, 2001 Presented By: FIRST SOC-NEST COMPANY • • Strategic Goals Duthla ✓Fund $2,200,000 to Purchase "Texas School of Baseball" * $1,500,000 Issuance of Debt $700,000 Cash ✓Direct Placement of Junior Lien Taxable Bonds to Seller of "Texas School of Baseball " ✓Maintain Flexibility and Capacity for Future Capital Needs • • Implementation Timeframe Duthia Date Event June 26,2001 Special SPDC Board Meeting SPDC Approves Resolution Declaring Intention to Undertake Project and Calling for a Public Hearing on the Project (Notice must be published 15 days before hearing and allow for a 60 day petition process) June 28,2001 Publication of Notice of Public Hearing on SPDC Project July 17,2001 Special SPDC Board Meeting Public Hearing on Project SPDC Approves Resolution Authorizing the Issuance of the Sales Tax Revenue Bonds,Series 2001 Signing of the Bond Purchase Agreement Southlake City Council Meeting City Approves Resolution Approving the Issuance of the Sales Tax Revenue Bonds,Series 2001 30 working days Attorney General Approves Bond Sale September 04,2001 Closing of Debt Issue and Delivery of New Money Funds to SPDC (1)Bold areas indicate formal SPDC Board and Southlake City Council action. 3 if 11 # Financial Assumptions Duthlca - Strategic Assumptions 1) Security Pledge A) SPDC sales tax rewnues Junior to both Subordinate and Senior Lien. B) 1.0 Maximum Annual Additional Bonds Test 2) Debt Payment A) Payment structure to match existing SPDC sales tax rewnues. 3) Debt Structure A) Debt Amortization - Principal and interest amortization over 10 years. B) Call Feature - Callable at par at any time. 4 f • Funding Summary Duthka - Projected Transaction Results Par Amount of Bonds $ 1,500,000 Cash 710,000 Total Sources $ 2,210,000 Project Fund $ 2,200,000 Costs of Issuance 10,000 Miscellanous - $ 2,210,000 Total Debt Service $ 2,030,150 Average Debt Service $ 203,015 Average Life 5.891 Years True Interest Cost 6.00% 5 f I • Existing Debt and Cash Flow S»uthla - Fiscal 1/2 Cent Existing Proposed Total Year Sales Tax Senior& Junior Debt Service Cowrage by Ending Rewnue Suborcinate $1,500,000 Total Previous Year Rewnue 30-Sep $ I % Debt Service Cowrage I Cash Flow 2001(') $2,310,645 $1,309,239 $1,309,239 1.407 $532,660 2002 2,657,242 15.00% 1,506,639 $205,250 1,711,889 1.350 598,756 2003 2,657,242 0.00% 1,505,809 202,800 1,708,609 1.555 948,633 2004 2,657,242 0.00% 1,503,894 205,600 1,709,494 1554 947,748 2005 2,657,242 0.00% 1,505,919 202,800 1,708,719 1355 948,523 2006 2,657,242 0.00% 1,506,624 204,700 1,711,324 1.553 945,918 2007 2,657,242 0.00% 1,505,944 201,000 1,706,944 1.557 950,298 2008 2,657,242 0.00% 1,508,889 202,000 1,710,889 1.553 946,353 2009 2,657,242 0.00% 1,510,234 202,400 1,712,634 1.552 944,608 2010 2,657,242 0.00% 1,509,891 202,200 1,712,091 1552 945,151 2011 2,657,242 0.00% 1,507,811 201,403 1,709,211 1355 948,031 2012 2,657,242 0.00% 1,508,929 0 1,508,929 1.761 1,148,313 2013 2,657,242 0.00% 1,508,204 0 1,508,204 1.762 1,149,038 2014 2,657,242 0.00% 1,505,554 0 1,505,554 1.765 1,151,688 2015 2,657,242 0.00% 1,510,946 0 1,510,946 1.759 1,146,296 2016 2,657,242 0.00% 1,508,780 0 1,508,780 1.761 1,148,462 2017 2,657,242 0.00% 1,509,636 0 1,509,636 1.760 1,147,606 2018 2,657,242 0.00% 1,508,259 0 1,508,259 1.762 1,148,983 2019 2,657,242 0.00% 1,509,603 0 1,509,603 1.760 1,147,639 2020 2,657,242 0.00% 1,508,484 0 1,508,484 1.762 1,148,758 2021 2,657,242 0.00% 1,509,903 0 1,509,903 1.760 1,147,339 2022 2,657,242 0.00% 1,508,590 0 1,508,590 1.761 1,148,652 2023 2,657,242 0.00% 1,507,040 0 1,507,040 1.763 1,150,202 2024 2,657,242 0.00% 1,502,890 0 1,502,890 1.768 1,154,352 2025 2,657,242 0.00% 1,121,140 0 1,121,140 2.370 1,536,102 2026 2,657,242 0.00% 1,122,180 0 1,122,180 2.368 1,535,062 2027 2,657,242 0.00% 1,120,640 0 1,120,640 2.371 1,536,602 2028 2,657,242 0.00% 1,121,520 0 1,121,520 2.369 1,535,722 2029 2,657,242 0.00% 1,119,560 0 1,119,560 2.373 1,537,682 2030 2,657,242 0.00% 1,119,740 0 1,119,740 2.373 1,537,502 2031 2,657,242 0.00% 881,760 0 881,760 3.014 1,775,482 Total 582,027,8981 $43,594,251 $2,030,150 $45,624,401 I $35,588,154 footnotes 1)Sales Tax Collections for 12 month period from April,2000 through March,2001 6 e Southlake Parks Development Corporation Taxable Sales Tax Junior Lien Revenue Bonds, Series 2001 Scenario 1 SOURCES & USES Dated 09/04/2001 Delivered 09/04/2001 SOURCES OF FUNDS Par Amount of Bonds $1,500,000.00 Planned Issuer Equity contribution 710,000.00 TOTAL SOURCES $2,210,000.00 USES OF FUNDS Costs of Issuance 10,000.00 Deposit to Project Construction Fund 2,200,000.00 TOTAL USES $2,210,000.00 First Southwest Compan 2001 SPDC.SF-Softball2001s1-SINGLE PURPOSE Public Finance 626/2001 12:31 PM Page 7 Southlake Parks Development Corporation Taxable Sales Tax Junior Lien Revenue Bonds, Series 2001 Scenario 1 DEBT SERVICE SCHEDULE Date Principal Coupon Interest Total P+I 9/30/2001 - - - - 9/30/2002 120,000.00 6.000% 85,250.00 205,250.00 9/30/2003 120,000.00 6.000% 82,800.00 202,800.00 9/30/2004 130,000.00 6.000% 75,600.00 205,600.00 9/30/2005 135,000.00 6.000% 67,800.00 202,800.00 9/30/2006 145,000.00 6.000% 59,700.00 204,700.00 9/30/2007 150,000.00 6.000% 51,000.00 201,000.00 9/30/2008 160,000.00 6.000% 42,000.00 202,000.00 9/30/2009 170,000.00 6.000% 32,400.00 202,400.00 9/30/2010 180,000.00 6.000% 22,200.00 202,200.00 9/30/2011 190,000.00 6.000% 11,400.00 201,400.00 Total 1,500,000.00 - 530,150.00 2,030,150.00 YIELD STATISTICS Bond Year Dollars $8,835.83 Average Life 5.891 Years Average Coupon 6.0000000% Net Interest Cost(NIC) 6.0000000% True Interest Cost(TIC) 6.0008653% Bond Yield for Arbitrage Purposes 6.0008653% All Inclusive Cost(AIC) 6.1425129% IRS FORM 8038 Net Interest Cost 6.0000000% Weighted Average Maturity 5.891 Years First Southwest Compan 1PubFin1ClientstSouthlakel2001lspdc1Final Numbers 2001 SPDC.SF-Softbal12001s1-SINGLE PURPOSE Public Finance 6r262001 12:31 PM Page 8 • 111 • Southlake Parks Development Corporation Taxable Sales Tax Junior Lien Revenue Bonds, Series 2001 Scenario 1 DEBT SERVICE SCHEDULE Date Principal Coupon Interest Total P+I FISCAL TOTAL 9/04/2001 - - - - - 2/15/2002 - - 40,250.00 40,250.00 - 8/15/2002 120,000.00 6.000% 45,000.00 165,000.00 - 9/30/2002 - - - - 205,250.00 2/15/2003 - - 41,400.00 41,400.00 - 8/15/2003 120,000.00 6.000% 41,400.00 161,400.00 - 9/30/2003 - - - - 202,800.00 2/15/2004 - - 37,800.00 37,800.00 - 8/15/2004 130,000.00 6.000% 37,800.00 167,800.00 - 9/30/2004 - - - - 205,600.00 2/15/2005 - - 33,900.00 33,900.00 - 8/15/2005 135,000.00 6.000% 33,900.00 168,900.00 - 9/30/2005 - - - - 202,800.00 2/15/2006 - - 29,850.00 29,850.00 - 8/15/2006 145,000.00 6.000% 29,850.00 174,850.00 - 9/30/2006 - - - 204,700.00 2/15/2007 - - 25,500.00 25,500.00 - 8/15/2007 150,000.00 6.000% 25,500.00 175,500.00 - 9/30/2007 - - - - 201,000.00 2/15/2008 - - 21,000.00 21,000.00 - 8/15/2008 160,000.00 6.000% 21,000.00 181,000.00 - 9/30/2008 - - - - 202,000.00 2/15/2009 - - 16,200.00 16,200.00 - 8/15/2009 170,000.00 6.000% 16,200.00 186,200.00 - 9/30/2009 - - - - 202,400.00 2/15/2010 - - 11,100.00 11,100.00 - 8/15/2010 180,000.00 6.000% 11,100.00 191,100.00 - 9/30/2010 - - - - 202,200.00 2/15/2011 - - 5,700.00 5,700.00 - 8/15/2011 190,000.00 6.000% 5,700.00 195,700.00 - 9/30/2011 - - - - 201,400.00 Total 1,500,000.00 - 530,150.00 2,030,150.00 - First Southwest CompanS:IPubFinlClientslSouthlake120011spdclFinal Numbers 2001 SPDC.SF-Softball2001s1-SINGLE PURPOSE Public Finance 626/2001 12.31 PM Page 9 • • • Southlake Parks Development Corporation Taxable Sales Tax Junior Lien Revenue Bonds, Series 2001 Scenario 1 DEBT SERVICE SCHEDULE YIELD STATISTICS Bond Year Dollars $8,835.83 Average Life 5.891 Years Average Coupon 6.0000000% Net Interest Cost(NIC) 6.0000000% True Interest Cost(TIC) 6.0008653% Bond Yield for Arbitrage Purposes 6.0008653% All Inclusive Cost(AIC) 6.1425129% IRS FORM 8038 Net Interest Cost 6.0000000% Weighted Average Maturity 5.891 Years First Southwest Compan S:IPubFinlClientslSouthlake120011spdclFinal Numbers 2001 SPDC.SF-Softball2001s1-SINGLE PURPOSE Public Finance 6/26/2001 12:31 PM Page 10 RESOLUTION NO. 01- CT O7D• A RESOLUTION authorizing the issuance of "SOUTHLAKE PARKS DEVELOPMENT CORPORATION TAXABLE SALES TAX THIRD LIEN REVENUE BONDS, SERIES 2001-A"; pledging certain "Pledged Revenues" of the Corporation, including "Gross Sales Tax Revenues", to the payment of the principal of and interest on said Bonds and enacting other provisions incident and related to the issuance, payment, security and delivery of said bonds, including the approval and execution of a Paying Agent/Registrar Agreement and a Financing/Use Agreement with the City, resolving other matters incident and related to the issuance and sale of the Bonds; and providing an effective date. WHEREAS, the Board of Directors of the Southlake Parks Development Corporation (the "Corporation") hereby finds and determines that bonds of the Corporation in the principal amount of $1,500,000 should be issued at this time to finance a park project involving the acquisition of land, buildings, equipment, facilities and improvements required or suitable for use for professional and amateur (including children's) sports, athletic, entertainment, and public park purposes and events, including stadiums and ball parks (Texas School of Baseball) (the "Project"); and WHEREAS, in accordance with a "Notice of Public Hearing Relating to Southlake Parks Development Corporation Project" duly published on , 2001, in the Fort Worth Star-Telegram, a newspaper of general circulation in the City of Southlake, Texas, a public hearing was duly held and conducted on the date hereof prior to the adoption of this • resolution by the Board of Directors on the Corporation's intention to undertake the Project; and WHEREAS, the Board of Directors has further determined and hereby finds that the Project to be financed by the issuance of the bonds is for and on behalf of the City of Southlake, Texas, and the principal amount of such bonds and other obligations of the Corporation payable in whole or in part from the "Gross Sales Tax Revenues" (hereinafter defined), together with the amount of the costs of other projects (other than such bonds and other obligations) for which payments to be made in cash directly from such "Gross Sales Tax Revenues" do not, in the aggregate, exceed $135,000,000; and WHEREAS, the Board of Directors further finds and determines that the bonds herein authorized should be payable from a lien on and pledge of the Pledged Revenues (as defined herein)junior and subordinate to the lien on and pledge of such Pledged Revenues securing the payment of the Priority Bonds (hereinafter identified and defined) and such bonds are to be delivered to the owner of the Project to be acquired in exchange for and upon the transfer of ownership of the Project to the City; now, therefore, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE SOUTHLAKE PARKS DEVELOPMENT CORPORATION: SECTION 1: Authorization - Designation - Principal Amount - Purpose. Bonds of the Corporation shall be and are hereby authorized to be issued in the aggregate principal amount of $1,500,000 to be designated and bear the title "SOUTHLAKE PARKS DEVELOPMENT CORPORATION TAXABLE SALES TAX THIRD LIEN REVENUE BONDS, SERIES 2001", hereinafter referred to as the "Bonds" to finance a park project involving the acquisition of land, buildings, equipment, facilities and improvements required or suitable for use for professional and amateur (including children's) sports, athletic, entertainment, and public park purposes and events, including stadiums and ball parks (Texas School of Baseball), in conformity with the Constitution and laws of the State of Texas, including Vernon's Ann. Civ. Stat., Section 4B of Article 5190.6. SECTION 2: Fully Registered Obligations - Authorized Denominations - Stated Maturities - Date. The Bonds shall be issued as fully registered obligations, without coupons, shall be dated July 15, 2001 (the "Issue Date") and shall be in denominations of $5,000 or any integral multiple thereof (within a Stated Maturity), shall be numbered consecutively from One (1) upward and shall become due and payable annually on August 15 in each of the years and in principal amounts (the "Stated Maturities") and bear interest at per annum rates in accordance with the following schedule: Principal Interest Stated Maturity Amount Rates 2002 $ 115,000 6.00% 2003 120,000 6.00% 2004 130,000 6.00% 2005 135,000 6.00% 2006 145,000 6.00% 2007 155,000 6.00% 2008 160,000 6.00% 2009 170,000 6.00% 2010 180,000 6.00% • 2011 190,000 6.00% The Bonds shall bear interest on the unpaid principal amounts from the date of their delivery to the initial owner (which date shall be the registration date noted on the Initial Bond(s) in the "Registration Certificate of Paying Agent/Registrar" to appear thereon) at the per annum rate shown above in this Section (calculated on the basis of a 360-day year of twelve 30-day months). Interest on the Bonds shall be payable on February 15 and August 15 in each year, commencing February 15, 2002. SECTION 3: Terms of Payment - Paying Agent/Registrar. The principal of, and the interest on the Bonds, due and payable by reason of maturity, redemption or otherwise, shall be payable only to the registered owners or holders of the Bonds (hereinafter called the "Holders") appearing on the registration and transfer books maintained by the Paying Agent/Registrar and the payment thereof shall be in any coin or currency of the United States of America, which at the time of payment is legal tender for the payment of public and private debts, and shall be without exchange or collection charges to the Holders. The selection and appointment of The Chase Manhattan Bank, as Paying Agent/Registrar for the Bonds is hereby approved and confirmed. Books and records relating to the registration, payment, exchange and transfer of the Bonds (the "Security Register") shall at all times be kept and maintained on behalf of the Corporation by the Paying Agent/Registrar, all as provided herein, in accordance with the terms and provisions of a "Paying Agent/Registrar Agreement", substantially in the form attached hereto as Exhibit A and such reasonable rules and regulations as the Paying Agent/Registrar and the Corporation may prescribe. The President and Secretary of the Board of Directors are hereby authorized to execute and deliver such Agreement in connection with the delivery of the Bonds. The Corporation covenants to • 45059652.1 2 maintain and provide a Paying Agent/Registrar at all times until the Bonds are paid in full and discharged. Any successor Paying Agent/Registrar shall be a bank, trust company, financial institution or other entity qualified and authorized to serve in such capacity and perform the duties and services of Paying Agent/Registrar. Upon any change in the Paying Agent/Registrar for the Bonds, the Corporation agrees to promptly cause a written notice to be sent to the Holder affected by United States Mail, first class postage prepaid, which notice shall identify and give the address of the new Paying Agent/Registrar. Principal of and premium, if any, on the Bonds shall be payable at the Stated Maturities or upon their earlier redemption, only upon presentation and surrender of the Bonds to the Paying Agent/Registrar at its principal offices in Dallas, Texas (the "Designated Payment/Transfer Office"). Interest on the Bonds shall be paid to the Holders whose name appear in the Security Register at the close of business on the Record Date (the last business day of the month next preceding each interest payment date) and shall be paid by the Paying Agent/Registrar (i) by check sent United States Mail, first class postage prepaid, to the address of the Holder recorded in the Security Register or (ii) by such other method, acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, the Holder. If the date for the payment of the principal of or interest on the Bonds shall be a Saturday, Sunday, a legal holiday, or a day when banking institutions in the city where the Designated Payment/Transfer Office of the Paying Agent/Registrar is located is authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not such a Saturday, Sunday, legal holiday, or day when banking institutions are authorized to close; and payment on such date shall have the same force and effect as if made on the original date payment was due. . In the event of a non-payment of interest on one or more maturities on a scheduled payment date, and for thirty (30) days thereafter, a new record date for such interest payment for such maturity or maturities (a "Special Record Date") will be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been received from the Corporation. Notice of the Special Record Date and of the scheduled payment date of the past due interest (which shall be 15 days after the Special Record Date) shall be sent at least five (5) business days prior to the Special Record Date by United States Mail, first class postage prepaid, to the address of each Holder of such maturity or maturities appearing on the Security Register at the close of business on the last business day next preceding the date of mailing of such notice. SECTION 4: Redemption. (a) Optional Redemption. The Bonds shall be subject to redemption prior to maturity, at the option of the Corporation, in whole or in part in principal amounts of $5,000 or any integral multiple thereof (and if within a Stated Maturity by lot by the Paying Agent/ Registrar), on any date at the redemption price of par plus accrued interest to the date of redemption. (b) Exercise of Redemption Option. At least forty-five (45) days prior to a date set for the redemption of Bonds (unless a shorter notification period shall be satisfactory to the Paying Agent/Registrar), the Corporation shall notify the Paying Agent/Registrar of its decision to exercise the right to redeem Bonds, the principal amount of each Stated Maturity to be redeemed, and the date set for the redemption thereof. The decision of the Corporation to exercise the right to redeem Bonds shall be entered in the minutes of the governing body of the Corporation. 45059652.1 3 (c) Selection of Bonds for Redemption. If less than all Outstanding Bonds are to be redeemed on a redemption date, the Paying Agent/Registrar shall treat such Bonds as representing the number of Bonds Outstanding which is obtained by dividing the principal amount of such Bond by $5,000 and shall select the Bonds, or principal amount thereof, to be redeemed by lot. (d) Notice of Redemption. Not less than thirty (30) days prior to a redemption date for the Bonds, a notice of redemption shall be sent by United States Mail, first class postage prepaid, in the name of the Corporation and at the Corporation's expense, to each Holder of a Bond to be redeemed in whole or in part at the address of the Holder appearing on the Security Register at the close of business on the business day next preceding the date of mailing such notice, and any notice of redemption so mailed shall be conclusively presumed to have been duly given irrespective of whether received by the Holder. All notices of redemption shall (i) specify the date of redemption for the Bonds, (ii) identify the Bonds to be redeemed and, in the case of a portion of the principal amount to be redeemed, the principal amount thereof to be redeemed, (iii) state the redemption price, (iv) state that the Bonds, or the portion of the principal amount thereof to be redeemed, shall become due and payable on the redemption date specified, and the interest thereon, or on the portion of the principal amount thereof to be redeemed, shall cease to accrue from and after the redemption date, and (v) specify that payment of the redemption price for the Bonds, or the principal amount thereof to be redeemed, shall be made at the Designated Payment/Transfer Office of the Paying Agent/ Registrar only upon presentation and surrender thereof by the Holder. If a Bond is subject by its terms to prior redemption and has been called for redemption and notice of redemption thereof has been duly given or waived as herein provided, such Bond (or the principal amount thereof to be redeemed) shall become due and payable, and interest thereon shall cease to accrue from and after the redemption date therefor, provided moneys sufficient for the payment of such Bonds (or of the principal amount thereof to be redeemed) at the then applicable redemption price are held for the purpose of such payment by the Paying Agent/Registrar. SECTION 5: Registration - Transfer - Exchange of Bonds - Predecessor Bonds. The Paying Agent/Registrar shall obtain, record, and maintain in the Security Register the name and address of each registered owner of the Bonds issued under and pursuant to the provisions of this Resolution. Any Bond may, in accordance with its terms and the terms hereof, be transferred or exchanged for Bonds of other authorized denominations upon the Security Register by the Holder, in person or by his duly authorized agent, upon surrender of such Bond to the Designated Payment/Transfer Office of the Paying Agent/Registrar for cancellation, accompanied by a written instrument of transfer or request for exchange duly executed by the Holder or by his duly authorized agent, in form satisfactory to the Paying Agent/Registrar. Upon surrender for transfer of a Bond at the Designated Payment/Transfer Office of the Paying Agent/Registrar, one or more new certificates evidencing the Bonds, in authorized denominations, of like Stated Maturity and of a like aggregate principal amount as the Bond or Bonds surrender for transfer shall be registered and issued to the assignee or transferee of the previous Holders. At the option of the Holder, Bonds may be exchanged for other Bonds of authorized denominations and having the same Stated Maturity, bearing the same rate of interest and of like aggregate principal amount as the Bonds surrendered for exchange, upon surrender of the Bonds to be exchanged at the Designated Payment/Transfer Office of the Paying 45059652.1 4 Agent/Registrar. Whenever any Bonds are surrendered for exchange, the Paying • Agent/Registrar shall register and deliver new printed certificates evidencing the Bonds, executed on behalf of, and furnished by, the Corporation, to the Holder requesting the exchange. All Bonds issued upon any transfer or exchange of Bonds shall be delivered at the Designated Payment/Transfer Office of the Paying Agent/Registrar, or sent by United States Mail, first class postage prepaid, to the Holder and, upon the delivery thereof, the same shall be valid obligations of the Corporation, evidencing the same obligation to pay, and entitled to the same benefits under this Resolution, as the Bonds surrendered in such transfer or exchange. All transfers or exchanges of Bonds pursuant to this Section shall be made without expense or service charge to the Holder, except as otherwise herein provided, and except that the Paying Agent/Registrar shall require payment by the Holder requesting such transfer or exchange of any tax or other governmental charges required to be paid with respect to such transfer or exchange. Bonds canceled by reason of an exchange or transfer pursuant to the provisions hereof are hereby defined to be "Predecessor Bonds," evidencing all or a portion, as the case may be, of the same obligation to pay evidenced by the Bond or Bonds registered and delivered in the exchange or transfer therefor. Additionally, the term "Predecessor Bonds" shall include any mutilated, lost, destroyed, or stolen Bond for which a replacement Bond has been issued, registered and delivered in lieu thereof pursuant to Section 24 hereof and such new replacement Bond shall be deemed to evidence the same obligation as the mutilated, lost, destroyed, or stolen Bond. SECTION 6: Execution - Registration. The Bonds shall be executed on behalf of the Corporation by the President of the Board of Directors under its seal reproduced or impressed thereon and attested by the Secretary of the Board of Directors of the Corporation. The signature of said officers on the Bonds may be manual or facsimile. Bonds bearing the manual or facsimile signatures of individuals who are or were the proper officers of the Corporation on the Issue Date shall be deemed to be duly executed on behalf of the Corporation, notwithstanding that such individuals or either of them shall cease to hold such offices at the time of delivery of the Bonds to the initial owners and with respect to Bonds delivered in subsequent exchanges and transfers. No Bond shall be entitled to any right or benefit under this Resolution, or be valid or obligatory for any purpose, unless there appears on such Bond either a certificate of registration substantially in the form provided in Section 8C, manually executed by the Comptroller of Public Accounts of the State of Texas or his duly authorized agent, or a certificate of registration substantially in the form provided in Section 8D, manually executed by an authorized officer, employee or representative of the Paying Agent/Registrar, and either such certificate upon any Bond duly signed shall be conclusive evidence, and the only evidence, that such Bond has been duly certified, registered and delivered. Notwithstanding the above and foregoing paragraph, the Initial Bond(s) authorized for delivery to the initial owners in Section 7 hereof shall have printed thereon both Certificates of Registration appearing in Sections 8C and 8D hereof, and both such certifications shall be required to be manually executed in connection with the initial delivery of the Initial Bond(s) to the initial owners and both such certificates appearing on each of the Initial Bond(s), duly • 45059652.1 5 signed, shall be conclusive evidence that such Initial Bond(s) have been duly certified, registered and delivered. SECTION 7: Initial Bond(s). The Bonds herein authorized shall be initially issued either (i) as a single fully registered bond in the total principal amount noted in Section 1 with principal installments to become due and payable as provided in Section 2 hereof and numbered T-1, or (ii) as multiple fully registered bonds, being one bond for each year of maturity in the applicable principal amount and denomination and to be numbered consecutively from T-1 and upward (hereinafter called the "Initial Bond(s)") and, in either case, the Initial Bond(s) shall be registered in the name of the initial owner(s) or the designee thereof. The Initial Bond(s) shall be the Bonds submitted to the Office of the Attorney General of the State of Texas for approval, certified and registered by the Office of the Comptroller of Public Accounts of the State of Texas and delivered to the initial owner(s). Any time after the delivery of the Initial Bond(s), the Paying Agent/Registrar, pursuant to written instructions from the initial owner(s), or the designee thereof, shall cancel the Initial Bond(s) delivered hereunder and exchange therefor definitive Bonds of authorized denominations, Stated Maturities, principal amounts and bearing applicable interest rates for transfer and delivery to the Holders named at the addresses identified therefor; all pursuant to and in accordance with such written instructions from the initial owner(s), or the designee thereof, and such other information and documentation as the Paying Agent/Registrar may reasonably require. SECTION 8: Forms. A. Forms Generally. The Bonds, the Registration Certificate of the Comptroller of Public Accounts of the State of Texas (to be printed on the Initial Bond(s) only), the Certificate of Registration, and the form of Assignment to be printed on each of the Bonds, shall be substantially in the forms set forth in this Section with such appropriate S insertions, omissions, substitutions, and other variations as are permitted or required by this Resolution and may have such letters, numbers, or other marks of identification (including identifying numbers and letters of the Committee on Uniform Securities Identification Procedures of the American Bankers Association) and such legends and endorsements (including insurance legends on insured Bonds and any reproduction of an opinion of counsel) thereon as may, consistently herewith, be established by the Board of Directors of the Corporation or determined by the officers executing such Bonds as evidenced by the execution thereof. Any portion of the text of any Bonds may be set forth on the reverse thereof, with an appropriate reference thereto on the face of the Bond. The Bonds, including the Initial Bond(s), shall be typewritten, printed, lithographed, or engraved or produced in any other similar manner, all as determined by the officers executing such Bonds as evidenced by their execution thereof. 45059652.1 6 B. Form of Bond. • REGISTERED REGISTERED NO. $ UNITED STATES OF AMERICA STATE OF TEXAS SOUTHLAKE PARKS DEVELOPMENT CORPORATION TAXABLE SALES TAX THIRD LIEN REVENUE BOND, SERIES 2001-A Issue Date: Interest Rate: Stated Maturity: CUSIP NO: July 15, 2001 6.00% Registered Owner: Principal Amount: DOLLARS The Southlake Parks Development Corporation (hereinafter referred to as the "Corporation"), a non-profit industrial development corporation organized and existing under the laws of the State of Texas, including Section 4B of Article 5190.6, Tex. Rev. Civ. St. Ann., as amended, (the "Act"), with its principal office located in Tarrant County, Texas, for value received, hereby promises to pay to the order of the Registered Owner named above, or the registered assigns thereof, solely from the revenues and sources pledged under the Resolution identified below, the Principal Amount stated above (or so much thereof as shall not have been S paid upon prior redemption) on the Stated Maturity date specified above and to pay interest (computed on the basis of a 360-day year of twelve 30-day months) on the unpaid Principal Amount hereof from the interest payment date next preceding the "Registration Date" of this Bond appearing below (unless this Bond bears a "Registration Date" as of an interest payment date, in which case it shall bear interest from such date, or unless this Bond is authenticated prior to February 15, 2002, in which case it shall bear interest from the date of its delivery, or the delivery of a Predecessor Bond, to the initial owners) at the per annum rate of interest specified above; such interest being payable on February 15 and August 15 of each year, commencing February 15, 2002. Principal of this Bond is payable at its Stated Maturity or redemption to the registered owner hereof, upon presentation and surrender, at the Designated Payment/Transfer Office of the Paying Agent/Registrar executing the registration certificate appearing hereon, or its successor. Interest is payable to the registered owner of this Bond (or one or more Predecessor Bonds, as defined in the resolution hereinafter referenced) whose name appears on the "Security Register" maintained by the Paying Agent/Registrar at the close of business on the "Record Date", which is the last business day of the month next preceding each interest payment date and interest shall be paid by the Paying Agent/Registrar by check sent United States Mail, first class postage prepaid, to the address of the registered owner recorded in the Security Register or by such other method, acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, the registered owner. All payments of principal of, premium, if any, and interest on this Bond shall be without exchange or collection charges to the owner hereof and in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts. This Bond is one of the series specified in its title issued in the aggregate principal amount of $1,500,000 (herein referred to as the "Bonds") to finance a park project involving the acquisition of land, buildings, equipment, facilities and improvements required or suitable for use 45059652.1 7 for professional and amateur (including children's) sports, athletic, entertainment, and public • park purposes and events, including stadiums and ball parks (Texas School of Baseball), including the Act, and pursuant to a Resolution adopted by the governing body of the Corporation (herein referred to as the "Resolution"). The Bonds are subject to being redeemed prior to their Stated Maturities, at the option of the Corporation, in whole or in part in principal amounts of $5,000 or any integral multiple thereof (and if within a Stated Maturity by lot by the Paying Agent/Registrar), on any date at the redemption price of par plus accrued interest thereon to the redemption date. At least thirty days prior to a redemption date, the Corporation shall cause a written notice of such redemption to be sent by United States Mail, first class postage prepaid, to the registered owners of the Bond to be redeemed at the address shown on the Security Register and subject to the terms and provisions relating thereto contained in the Resolution. If a Bond (or any portion of its principal sum) shall have been duly called for redemption and notice of such redemption duly given, then upon such redemption date such Bond (or the portion of its principal sum to be redeemed) shall become due and payable, and, if moneys for the payment of the redemption price and the interest accrued on the principal amount to be redeemed to the date of redemption are held for the purpose of such payment by the Paying Agent/Registrar, interest shall cease to accrue and be payable from and after the redemption date on the principal amount of such Bond redeemed. In the event of a portion of the principal amount of a Bond is to be redeemed, payment of the redemption price of such principal amount shall be made to the registered owner only upon presentation and surrender of such Bond to the Designated Payment/Transfer Office of the • Paying Agent/Registrar, and a new Bond or Bonds of like maturity and interest rate in any authorized denominations provided by the Resolution for the then unredeemed balance of the principal sum thereof will be issued to the registered owner, without charge. If a Bond is selected for redemption, in whole or in part, the Corporation and the Paying Agent/Registrar shall not be required to transfer such Bond to an assignee of the Holder within 45 days of the redemption date therefor; provided, however, such limitation on transferability shall not be applicable to an exchange by the Holder of the unredeemed balance of a Bond redeemed in part. The Bonds are special obligations of the Corporation payable solely from and equally and ratably secured by a lien on and pledge of the "Pledged Revenues" (as defined in the Resolution) of the Corporation, including the receipts from a Sales Tax levied for the benefit of the Corporation pursuant to the Act; provided, however, the lien on and pledge of the "Pledged Revenues" securing the payment of the Bonds is junior and subordinate to the prior lien on and pledge of such Pledged Revenues securing the payment of Priority Bonds (identified and defined in the Resolution) now outstanding and hereafter issued by the Corporation. The Bonds do not constitute a legal or equitable, pledge, charge, lien or encumbrance upon any property of the Corporation or the City of Southlake, Texas (the "City") except with respect to the "Pledged Revenues". This Bond may not be paid in whole or in part from any property taxes raised or to be raised by the City and is not a debt of and does not give rise to a claim for payment against the City, except as to the sales and use tax revenues held by the City and required under the Act to be paid over to the Corporation. Neither the State of Texas, the City or any political corporation, subdivision or agency of the State of Texas shall be obligated to pay this Bond or the interest hereon and neither the faith and credit nor the taxing power of the State, the City or • any other political corporation, subdivision or agency thereof is pledged to the payment of the principal of and interest on this Bond except as noted above. 45059652.1 8 • Subject to satisfying the terms and conditions prescribed therefor, the Corporation has reserved the right to issue additional revenue obligations payable, in whole or in part, from the "Pledged Revenues" and (i) equally and ratably secured by a parity lien on and pledge of such "Pledged Revenues" securing the payment of the Priority Bonds currently outstanding or (ii) equally and ratably secured by the parity lien on and pledge of the "Pledged Revenues" securing the payment of the Bonds. Reference is hereby made to the Resolution, a copy of which is on file in the Designated Payment/Transfer Office of the Paying Agent/Registrar, and to all of the provisions of which the Holder by the acceptance hereof hereby assents, for definitions of terms; the description of and the nature and extent of the security for the payment of the Bonds; the rights of Holders of the Bonds the terms and conditions for the issuance of additional obligations; the terms and conditions relating to the payment, transfer or exchange of this Bond; the conditions upon which the Resolution may be amended or supplemented with or without the consent of the Holders; the rights, duties, and obligations of the Corporation and the Paying Agent/Registrar; the terms and provisions upon which the encumbrancs, pledges, charges and covenants made therein may be discharged; and for the other terms and provisions contained therein. Capitalized terms used herein have the same meanings assigned in the Resolution. This Bond, subject to certain limitations contained in the Resolution, may be transferred on the Security Register only upon its _ presentation and surrender at the Designated Payment/Transfer Office of the Paying Agent/Registrar, with the Assignment hereon duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Paying Agent/Registrar duly executed by, the registered owner hereof, or his duly authorized agent. When a transfer on the Security Register occurs, one or more new fully registered 10 Bonds of the same Stated Maturity, of authorized denominations, bearing the same rate of interest, and of the same aggregate principal amount will be issued by the Paying Agent/Registrar to the designated transferee or transferees. The Corporation and the Paying Agent/Registrar, and any agent of either, may treat the registered owner hereof whose name appears on the Security Register (i) on the Record Date as the owner entitled to payment of interest hereon, (ii) on the date of surrender of this Bond as the owner entitled to payment of principal hereof at its Stated Maturity or its redemption, in whole or in part, and (iii) on any other date as the owner for all other purposes, and neither the Corporation nor the Paying Agent/Registrar, or any agent of either, shall be affected by notice to the contrary. In the event of non-payment of interest on a scheduled payment date and for thirty (30) days thereafter, a new record date for such interest payment (a "Special Record Date") will be established by the Paying Agent/Registrar, if and when funds for the payment of such interest have been received from the Corporation. Notice of the Special Record Date and of the scheduled payment date of the past due interest (which shall be 15 days after the Special Record Date) shall be sent at least five (5) business days prior to the Special Record Date by United States Mail, first class postage prepaid, to the address of each Holder appearing on the Security Register at the close of business on the last business day next preceding the date of mailing of such notice. It is hereby certified, recited, represented and covenanted that the Corporation is a non-profit industrial development corporation duly organized and legally existing under and by virtue of the Constitution and laws of the State of Texas, including the Act; that all acts, conditions and things required to exist and be done precedent to and in the issuance of the Bonds to render the same lawful and valid special obligations of the Corporation have been properly done, have happened and have been performed in regular and due time, form and 45059652.1 9 manner as required by law; and that due provision has been made for the payment of the • principal of and interest on the Bonds from the sources and in the manner provided in the Resolution. In case any provision in this Bond or any application thereof shall be invalid, illegal, or unenforceable, the validity, legality, and enforceability of the remaining provisions and applications shall not in any way be affected or impaired thereby. The terms and provisions of this Bond and the Resolution shall be construed in accordance with and shall be governed by the laws of the State of Texas. IN WITNESS WHEREOF, the Board of Directors of the Corporation has caused this Bond to be duly executed under the official seal of the Corporation as of the Issue Date. SOUTHLAKE PARKS DEVELOPMENT CORPORATION President, Board of Directors ATTEST: Secretary, Board of Directors (SEAL) 11110. 45059652.1 10 • C. *Form of Registration Certificate of Comptroller of Public Accounts to Appear • on Initial Bonds only. REGISTRATION CERTIFICATE OF COMPTROLLER OF PUBLIC ACCOUNTS OFFICE OF THE COMPTROLLER ) OF PUBLIC ACCOUNTS ) REGISTER NO. THE STATE OF TEXAS I HEREBY CERTIFY that this Bond has been examined, certified as to validity and approved by the Attorney General of the State of Texas, and duly registered by the Comptroller of Public Accounts of the State of Texas. WITNESS my signature and seal of office this Comptroller of Public Accounts of the State of Texas (SEAL) *NOTE TO PRINTER: Do not print on definitive bonds D. Form of Certificate of Paying Agent/Registrar to Appear on definitive Bonds. REGISTRATION CERTIFICATE OF PAYING AGENT/REGISTRAR This Bond has been duly issued and registered in the name of the Registered Owner shown above under the provisions of the within-mentioned Resolution and duly approved, or a Predecessor Bond hereof duly approved, by the Attorney General of the State of Texas and registered by the Comptroller of Public Accounts, as shown by the records of the Paying Agent/Registrar. The designated offices of the Paying Agent/Registrar located in Dallas, Texas, is the "Designated Payment/Transfer Office" for this Bond. THE CHASE MANHATTAN BANK as Paying Agent/Registrar Registration date: By Authorized Signature 45059652.1 1 1 • E. Form of Assignment. ASSIGNMENT FOR VALUE RECEIVED the undersigned hereby sells, assigns, and transfers unto (Print or typewrite name, address, and zip code of transferee:) (Social Security or other identifying number ) the within Bond and all rights thereunder, and hereby irrevocably constitutes and appoints attorney to transfer the within Bond on the books kept for registration thereof, with full power of substitution in the premises. DATED: NOTICE: The signature on this assignment must correspond with the Signature guaranteed: name of the registered owner as it appears on the face of the within Bond in every particular. F. The Initial Bond(s) shall be in the form set forth in paragraph B of this Section, except that the form of a single fully registered Initial Bond shall be modified as follows: (i) immediately under the name of the bond the headings "Interest Rate " and "Stated Maturity " shall both be omitted;" (ii) Paragraph one shall read as follows: The Southlake Parks Development Corporation (hereinafter referred to as the "Corporation"), a non-profit industrial development corporation organized and existing under the laws of the State of Texas, including Section 4B of Article 5190.6, Tex. Rev. Civ. St. Ann., as amended, (the "Act"), with its principal office located in Tarrant County, Texas, for value received, hereby promises to pay to the order of the Registered Owner named above, or the registered assigns thereof, solely from the revenues and sources pledged under the Resolution identified below, the Principal Amount hereinabove stated on August 15 in each of the years and in principal amounts and bearing interest at the per annum rate in accordance with the following schedule: PRINCIPAL INTEREST YEAR _ INSTALLMENTS RATE (Information to be inserted from schedule in Section 2 hereof). (or so much thereof as shall not have been paid upon prior redemption) and to pay interest (computed on the basis of a 360-day year of twelve 30-day months) on the unpaid Principal Amount hereof from the date of delivery to the initial owners at the per annum rate of interest specified above; such interest being payable on February 15 and August 15 of each year, commencing February 15, 2002. Principal installments of this Bond are payable at its Stated Maturity or on a prepayment date to the registered owner hereof by The Chase Manhattan 45059652.1 1 2 Bank, Houston, Texas (the "Paying Agent/Registrar"), upon its presentation and surrender, at its • principal offices in Dallas, Texas (the "Designated Payment/Transfer Office"). Interest is payable to the registered owner of this Bond (or one or more Predecessor Bonds, as defined in the resolution hereinafter referenced) whose name appears on the "Security Register" maintained by the Paying Agent/Registrar at the close of business on the "Record Date", which is the last business day of the month next preceding each interest payment date and interest shall be paid by the Paying Agent/Registrar by check sent United States Mail, first class postage prepaid, to the address of the registered owner recorded in the Security Register or by such other method, acceptable to the Paying Agent/Registrar, requested by, and at the risk and expense of, the registered owner. All payments of principal of, premium, if any, and interest on this Bond shall be without exchange or collection charges to the owner hereof and in any coin or currency of the United States of America which at the time of payment is legal tender for the payment of public and private debts. SECTION 9: Definitions. For all purposes of this Resolution and in particular for clarity with respect to the issuance of the Bonds herein authorized and the pledge and appropriation of revenues to the payment of the Bonds, the following definitions are provided: "Act" - The Development Corporation Act of 1979, Vernon's Ann. Civ. St., Art. 5190.6, as amended at any time. "Additional Obligations" - Bonds, notes or other evidences of indebtedness which the Corporation reserves the right to issue or enter into, as the case may be, in the future in accordance with the terms and conditions provided in Section 16 hereof and which, together with the Bonds, are equally Sand ratably secured by a parity pledge of and claim on the Pledged Revenues under the terms of this Resolution and a Supplemental Resolution. "Average Annual Debt Service" - That amount which, at the time of computation, is derived by dividing the total amount of Debt Service to be paid over a period of years as the same is scheduled to become due and payable by the number of years taken into account in determining the total Debt Service. Capitalized interest payments provided from proceeds or borrowings of the Corporation shall be excluded in making the aforementioned computation. "Board" - The Board of Directors of the Corporation. "Bonds" - The "Southlake Parks Development Corporation Taxable Sales Tax Third Lien Revenue Bonds, Series 2001-A", dated July 15, 2001, authorized by this Resolution. "City" - The City of Southlake, Texas. "Corporation" - The Southlake Parks Development Corporation, a non-profit industrial development corporation organized and existing under and pursuant to the laws of the State of Texas, including Section 4B of the Act, with its principal place of business in Tarrant County, Texas. "Debt Service" - As of any particular date of computation, with respect to any obligations and with respect to any period, the aggregate of the amounts to be paid or set aside by the Corporation as of such date or in such period for the 45059652.1 13 payment of the principal of, premium, if any, and interest (to the extent not • capitalized) on such obligations; assuming, in the case of obligations without a fixed numerical rate, that such obligations bear, or would have borne, interest at the maximum legal per annum rate applicable to such obligations, and further assuming in the case of obligations required to be redeemed or prepaid as to principal prior to maturity, the principal amounts thereof will be redeemed prior to maturity in accordance with the mandatory redemption provisions applicable thereto. "Depository" - A commercial bank or other qualified financial institution eligible and qualified to serve as the custodian of the Corporation's monetary accounts and funds. "Fiscal Year" - The twelve month financial accounting period used by the Corporation ending September 30 in each year, or such other twelve consecutive month period established by the Corporation. "Government Obligations" - (i) direct noncallable obligations of the United States of America, including obligations the principal of and interest on which are unconditionally guaranteed by the United States of America, (ii) noncallable obligations of an agency or instrumentality of the United States, including obligations unconditionally guaranteed or insured by the agency or instrumentality and on the date of their acquisition or purchase by the Corporation are rated as to investment quality by a nationally recognized investment rating firm not less than AAA or its equivalent and (iii) noncallable obligations of a state or an agency or a county, municipality, or other political subdivision of a state that have been refunded and on the date of their acquisition or purchase by the Corporation, are rated as to investment quality by a nationally recognized investment rating firm not less than AAA or its equivalent. "Gross Sales Tax Revenues" - All of the Sales Tax revenues or receipts due or owing to, or collected or received by or on behalf of the Corporation by the City or otherwise pursuant to Section 4B of the Act and the election held November 2, 1993, less any amounts due and owed to the Comptroller of Public Accounts of the State of Texas as charges for the collection of the Sales Tax or retention by said Comptroller for refunds and to redeem dishonored checks and drafts, to the extent such charges and retention are authorized or required by law. "Outstanding" - When used in this Resolution with respect to Bonds or Parity Obligations, as the case may be, means, as of the date of determination, all Bonds and Parity Obligations theretofore sold, issued and delivered by the Corporation, except: (1) those Bonds or Parity Obligations canceled or delivered to the transfer agent or registrar for cancellation in connection with the exchange or transfer of such obligations; (2) those Bonds or Parity Obligations paid or deemed to be paid in accordance with the provisions of Section 22 hereof or similar provisions of any Supplemental Resolution authorizing the issuance of Additional Obligations. 45059652.1 14 (3) those Bonds or Parity Obligations that have been mutilated, • destroyed, lost, or stolen and replacement obligations have been registered and delivered in lieu thereof. "Parity Obligations" - Collectively, the Bonds and Additional Obligations. "Pledged Revenues" - Collectively (i) Gross Sales Tax Revenues from time to time deposited or owing to the Pledged Revenue Fund and (ii) such other money, income, revenue, receipts or other property as may be specifically dedicated, pledged or otherwise encumbered in a Supplemental Resolution for the payment and security of Parity Obligations. "Priority Bonds" — Collectively, (a) the outstanding and unpaid (1) "Southlake Parks Development Corporation Refunding and Improvement Sales Tax Revenue Bonds, Series 1997", dated February 15, 1997, and (2) "Southlake Parks Development Corporation Sales Tax Revenue Bonds, Series 1999", dated April 1, 1999, originally issued in the principal amount of $4,655,000 and obligations issued on a parity therewith and (b) the outstanding and unpaid (1) "Southlake Parks Development Corporation Sales Tax Subordinate Lien Revenue Bonds, Series 2000", dated March 1, 2000, originally issued in the principal amount of $4,180,000 and (2) "Southlake Parks Development Corporation Sales Tax Subordinate Lien Revenue Bonds, Series 2001", dated May 15, 2001, originally issued in the principal amount of $4,690,000, and obligations issued on a parity therewith. 111 "Sales Tax" - The local sales and use tax authorized under Section 4B of the Act, approved at an election held on November 2, 1993, and the effective date for the imposition and application of such Sales Tax within the corporate limits of the City by the Comptroller of Public Accounts of the State of Texas being April 1, 1994, together with any increases in the rate of such Sales Tax authorized and provided by law. "Supplemental Resolution" - Any resolution of the Board supplementing this Resolution for the purpose of authorizing and providing the terms and provisions of the Bonds or Additional Obligations, or supplementing or amending this Resolution for any other authorized purpose permitted in Section 16 or 23 hereof, including resolutions authorizing the issuance of Additional Obligations or pledging and encumbering income, revenues, receipts or property other than the Gross Sales Tax Revenues to the payment and security of the Parity Obligations. SECTION 10: Pledge. The Corporation hereby covenants and agrees that, subject only to the prior claim on and pledge of the Pledged Revenues to the payment and security of the Priority Bonds (including the establishment and maintenance of the respective special funds created for the payment and security of such bonds) under the terms and provisions of the resolutions and proceedings pertaining to their authorization, the Pledged Revenues, with the exception of those in excess of the amounts required for the payment and security of the Parity Obligations, are hereby irrevocably pledged to the payment and security of the Bonds and Additional Obligations, if issued, including the establishment and maintenance of the special funds created and established in this Resolution and any Supplemental Resolution, all as hereinafter provided. The Corporation hereby resolves the Parity Obligations shall constitute a lien on the Pledged Revenues in accordance with the terms of this Resolution and any 45059652.1 15 Supplemental Resolution, which lien shall be valid and binding without any further action by the Corporation and without any filing or recording with respect thereto except in the records of the Corporation. SECTION 11: Pledged Revenue Fund. In accordance with the provisions of the resolutions authorizing the issuance of the Priority Bonds and while the Bonds are Outstanding, the Corporation hereby agrees and covenants to maintain a fund or account at a Depository for the deposit of the Pledged Revenues as received by the Corporation, which fund or account shall be known on the books and records of the Corporation as the "Pledged Revenue Fund". All Pledged Revenues deposited to the credit of such Fund shall be accounted for separate and apart from all other revenues, receipts and income of the Corporation and, with respect to the Gross Sales Tax Revenues, the Corporation shall further account for such funds separate and apart from the other Pledged Revenues deposited to the credit of the Pledged Revenue Fund. All Pledged Revenues deposited to the credit of the Pledged Revenue Fund shall be appropriated and expended to the extent required by this Resolution and any Supplemental Resolution for the following uses and in the order of priority shown: First: To the payment of the amounts required to be deposited in the special funds and accounts maintained for the payment and security of the Priority Bonds; Second To the payment of the amounts required to be deposited in the Bond Fund for the payment of Debt Service on the Parity Obligations as the same becomes due and payable; 111) Third: To the payment of amounts required to be deposited in any other fund or account required by any Supplemental Resolution authorizing the issuance of Parity Obligations; and Fourth: To any fund or account held at any place or places, or to any payee, required by any other resolution of the Board which authorized the issuance of obligations or the creation of debt of the Corporation having a lien on the Pledged Revenues subordinate to the lien created herein on behalf of the Parity Obligations. Any Pledged Revenues remaining in the Pledged Revenue Fund after satisfying the foregoing payments, or making adequate and sufficient provision for the payment thereof, may be appropriated and used for any other lawful purpose now or hereafter permitted by law. SECTION 12: Bond Fund. For the purpose of providing funds to pay the principal of and interest on Parity Obligations, the Corporation agrees and covenants to maintain a separate and special account or fund on the books and records of the Corporation known as the "Southlake Parks Development Corporation Third Lien Debt Service Account" (the "Bond Fund"), and all monies deposited to the credit of such Fund shall be held in a special banking fund or account maintained at a Depository of the Corporation. The Corporation covenants that, after paying or • making provision for all priority payments for the Priority Bonds, there shall be deposited into the Bond Fund prior to each principal and interest payment date from the Pledged Revenues an amount equal to one hundred per centum (100%) of the interest on and the principal of the Bonds then falling due and payable, and such deposits to pay principal and accrued interest on the Bonds shall be made in substantially equal monthly installments on or before the 10th day of 45059652.1 1 6 each month, beginning on or before the 10th day of the month next following the delivery of the • Bonds to the initial owners. The required deposits to the Bond Fund for the payment of principal of and interest on the Bonds shall continue to be made as hereinabove provided until (i) the total amount on deposit in the Bond Fund is equal to the amount required to fully pay and discharge all Parity Obligations (principal and interest) then Outstanding or (ii) the Bonds are no longer Outstanding. SECTION 13: Deficiencies. If on any occasion there shall not be sufficient Pledged Revenues to make the required deposits into the Bond Fund, such deficiency shall be cured as soon as possible from the next available Pledged Revenues, or from any other sources available for such purpose. SECTION 14: Payment of Bonds. While any of the Bonds are Outstanding, the Treasurer of the Corporation (or other designated financial officer of the Corporation) shall cause to be transferred to the Paying Agent/Registrar, from funds on deposit in the Bond Fund, amounts sufficient to fully pay and discharge promptly as each installment of interest and principal of the Bonds accrues or matures; such transfer of funds to be made in such manner as will cause immediately available funds to be deposited with the Paying Agent/Registrar for the Bonds at the close of the business day next preceding the date of payment for the Bonds. SECTION 15: Investments- Security of Funds. (a) Money in any Fund required to be maintained pursuant to this Resolution may, at the option of the Corporation, be invested in obligations and in the manner prescribed by the Public Funds Investment Act (V.T.C.A., Government Code, Chapter 2256), including investments held in book-entry form; provided that . all such deposits and investments shall be made in such a manner that the money required to be expended from any Fund will be available at the proper time or times. Such investments shall be valued in terms of current market value within 45 days of the close of each Fiscal Year. All interest and income derived from deposits and investments in the Bond Fund immediately shall be credited to, and any losses debited to, the appropriate account of the Bond Fund. All such investments shall be sold promptly when necessary to prevent any default in connection with the Parity Obligations. (b) Money deposited to the credit of the Pledged Revenue Fund and Bond Fund, to the extent not invested and not otherwise insured by the Federal Deposit Insurance Corporation or similar agency, shall be secured by a pledge of direct obligations of the United States of America, or obligations unconditionally guaranteed by the United States of America. SECTION 16: Issuance of Additional Parity Obligations. Subject to the provisions hereinafter appearing as to conditions precedent which must be satisfied, the Corporation reserves the right to issue, from time to time as needed, Additional Obligations for any lawful purpose. Such Additional Obligations may be issued in such form and manner as the Corporation shall determine, provided, however, prior to issuing or incurring such Additional Obligations, the following conditions precedent for the authorization and issuance of the same are satisfied, to wit: (1) The Treasurer of the Corporation (or other officer of the Corporation then having the primary responsibility for the financial affairs of the Corporation) shall have executed a certificate stating that, to the best of his or her knowledge and belief, the Corporation is not then in default as to any 45059652.1 1 7 covenant, obligation or agreement contained in the Resolution or a Supplemental Resolution. (2) The Corporation has secured from a certified public accountant a certificate or opinion to the effect that, according to the books and records of the Corporation, the Gross Sales Tax Revenues received by the Corporation for either (i) the last completed Fiscal Year next preceding the adoption of the Supplemental Resolution authorizing the issuance of the proposed Additional Obligations or (ii) any twelve (12) consecutive months out of the previous eighteen (18) months next preceding the adoption of the Supplemental Resolution authorizing the Additional Obligations were equal to not less than 1.00 times the maximum annual Debt Service for all Priority Bonds and Parity Obligations then Outstanding and after giving effect to the issuance of the Additional Obligations then being issued. Additionally, for the purpose of providing this certificate or opinion, if the Corporation shall not have received Gross Sales Tax Revenues for a full 12 month period, one-half of the amount of sales tax revenues actually received by the City under Chapter 321, TEX.TAX CODE, may be used for the months during which the Corporation did not receive Gross Sales Tax Revenues. SECTION 17: Refunding Bonds. The Corporation reserves the right to issue refunding bonds to refund all or any part of the Parity Obligations (pursuant to any law then available) upon such terms and conditions as the Board may deem to be in the best interest of the Corporation, and if less than all such Parity Obligations then Outstanding are refunded, the conditions precedent prescribed (for the issuance of Additional Obligations) set forth in Section 16 hereof shall be satisfied, and shall give effect to the refunding. SECTION 18: Right to Issue Additional Priority Bonds - Right to Create Subordinate Debt. The Corporation expressly reserves the right to issue Priority Bonds without any limitation or having to comply with any terms, conditions or restrictions contained in this Resolution, but subject to any terms, conditions or restrictions applicable thereto under law or otherwise. Furthermore, except as may be limited by a Supplemental Resolution, the Corporation hereby expressly retains the right to issue or create obligations payable from and secured by a lien on all or any part of the Pledged Revenues for any lawful purpose without complying with the provisions of Section 16 or 17 hereof, provided the pledge and the lien securing the payment of such obligations is junior and subordinate to the lien and pledge securing the payment of the Parity Obligations. SECTION 19: Confirmation and Levy of Sales Tax. (a) The Board hereby represents the City has duly complied_with the provisions of the Act for the levy of the Sales Tax at the rate voted at the election held by and within the City on November 2, 1993, and such Sales Tax is being imposed within the corporate limits of the City and the receipts of such Sales Tax are being remitted to the City by the Comptroller of Public Accounts on a monthly basis. (b) While any Bonds are Outstanding, the Corporation covenants, agrees and warrants to take and pursue all action permissible to cause the Sales Tax, at said rate or at a higher rate if legally permitted, to be levied and collected continuously, in the manner and to the maximum extent permitted by law, and to cause no reduction, abatement or exemption in the Sales Tax or rate of tax below the rate stated, confirmed and ordered in subsection (a) of this Section to be ordered or permitted while any Bonds shall remain Outstanding. 45059652.1 1 8 (c) If hereafter authorized by law to apply, impose and levy the Sales Tax on any • taxable items or transactions that are not subject to the Sales Tax on the date of the adoption hereof, to the extent it legally may do so, the Corporation agrees to use its best efforts to cause the City to take such action as may be required to subject such taxable items or transactions to the Sales Tax. (d) The Corporation agrees to take and pursue all action legally permissible to cause the Sales Tax to be collected and remitted and deposited as herein required and as required by Section 4B of the Act, at the earliest and most frequent times permitted by law. (e) The Corporation agrees to use its best efforts to cause the City to comply with Section 4B of the Act and shall cause the Gross Sales Tax Revenues to be deposited to the credit of the Pledged Revenue Fund in their entirety immediately upon receipt by the City. In the alternative and if legally authorized, the Corporation shall, by appropriate notice, direction, request or other legal method, use its good-faith efforts to cause the Comptroller of Public Accounts of the State of Texas (the "Comptroller") to pay all Gross Sales Tax Revenues directly to the Corporation for deposit to the Pledged Revenue Fund. SECTION 20: Records and Accounts. The Corporation hereby covenants and agrees that while any of the Bonds are Outstanding, it will keep and maintain complete records and accounts in accordance with generally accepted accounting principles, and following the close of each Fiscal Year, it will cause an audit of such books and accounts to be made by an independent firm of certified public accountants. Each such audit, in addition to whatever other matters may be thought proper by the accountant, shall particularly include the following: . (1) A statement in reasonable detail regarding the receipt and disbursement of the Pledged Revenues for such Fiscal Year; and (2) A balance sheet for the Corporation as of the end of such Fiscal Year. Such annual audit of the records and accounts of the Corporation shall be in the form of a report and be accompanied by an opinion of the accountant to the effect that such examination was made in accordance with generally accepted auditing standards and contain a statement to the effect that in the course of making the examination necessary for the report and opinion, the accountant obtained no knowledge of any default of the Corporation on the Bonds or in the fulfillment of any of the terms, covenants or provisions of this Resolution, or under any other evidence of indebtedness, or of any event which, with notice or lapse of time, or both, would constitute a failure of the Corporation to comply with the provisions of this Resolution or if, in the opinion of the accountants, any such failure to comply with a covenant or agreement hereof, a statement as to the nature and status thereof shall be included. Copies of each annual audit report shall be furnished upon written request, to any Holders of any of said Bonds. The audits herein required shall be made within 120 days following the close of each Fiscal Year insofar as is possible. • 45059652.1 19 The Holders of any Bonds or any duly authorized agent or agents of such Holders shall • have the right to inspect such records, accounts and data of the Corporation during regular business hours. SECTION 21: Representations as to Security for the Bonds. (a) The Corporation represents and warrants that, except for the Priority Bonds and the Parity Obligations, the Pledged Revenues are and will be and remain free and clear of any pledge, lien, charge or encumbrance thereon or with respect thereto prior to, or of equal rank with, the pledge and lien created in or authorized by this Resolution except as expressly provided herein. (b) The Bonds and the provisions of this Resolution are and will be the valid and legally enforceable obligations of the Corporation in accordance with their terms and the terms of this Resolution, subject only to any applicable bankruptcy or insolvency laws or to any laws affecting creditors rights generally. (c) The Corporation shall at all times, to the extent permitted by law, defend, preserve and protect the pledge of the Pledged Revenues and all the rights of the Holders against all claims and demands of all persons whomsoever. (d) The Corporation will take, and use its best efforts to cause the City to take, all steps reasonably necessary and appropriate to collect all delinquencies in the collection of the Sales Tax to the fullest extent permitted by the Act. (e) The provisions, covenants, pledge and lien on and against the Pledged Revenues, as herein set forth, are established and shall be for the equal benefit, protection and • security of the owners and holders of Parity Obligations without distinction as to priority and rights under this Resolution. (f) The Parity Obligations shall constitute special obligations of the Corporation, payable solely from, and equally and ratably secured by a parity pledge of and lien on, the Pledged Revenues, and not from any other revenues, properties or income of the Corporation; such pledge of and lien on the Pledged Revenues being junior and subordinate to the pledge of and lien on the Pledged Revenues securing the payment of the Priority Bonds. The Bonds may not be paid in whole or in part from any property taxes raised or to be raised by the City and shall not constitute debts or obligations of the State or of the City, and the Holders, shall never have the right to demand payment out of any funds raised or to be raised by any system of ad valorem taxation. SECTION 22: Satisfaction of Obligation of Corporation. If the Corporation shall pay or cause to be paid, or there shall otherwise be paid to the Holders, the principal of, premium, if any, and interest on the Bonds, at the times and in the manner stipulated in this Resolution, then the pledge of the Pledged Revenues under this Resolution and all other obligations of the Corporation to the Holders shall thereupon cease, terminate, and be discharged and satisfied. Bonds or any principal amount(s) shall be deemed to have been paid within the meaning and with the effect expressed above in this Section when (i) money sufficient to pay in full such Bonds at maturity or to the redemption date therefor, together with all interest due thereon, shall have been irrevocably deposited with and held in trust by the Paying Agent/Registrar, or an authorized escrow agent, or (ii) Government Obligations shall have been irrevocably deposited • in trust with the Paying Agent/Registrar, or an authorized escrow agent, which Government Obligations have been certified by an independent accounting firm to mature as to principal and 45059652.1 20 interest in such amounts and at such times as will insure the availability, without reinvestment, of sufficient money, together with any moneys deposited therewith, if any, to pay when due the Bonds on the Stated Maturities thereof or (if notice of redemption has been duly given or waived or if irrevocable arrangements therefor accepted to the Paying Agent/Registrar have been made) the redemption date thereof. The Corporation covenants that no deposit of moneys or Government Obligations will be made under this Section and no use made of any such deposit which would cause the Bonds to be treated as "arbitrage bonds" within the meaning of Section 148 of the Internal Revenue Code of 1986, as amended, or regulations adopted pursuant thereto. Any moneys so deposited with the Paying Agent/ Registrar, or an authorized escrow agent, and all income from Government Obligations held in trust by the Paying Agent/Registrar, or an authorized escrow agent, pursuant to this Section in excess of the amount required for the payment of the Bonds shall be remitted to the Corporation or deposited as directed by the Corporation. Furthermore, any money held by the Paying Agent/Registrar for the payment of the principal of and interest on the Bonds and remaining unclaimed for a period of three (3) years after the Stated Maturity, or applicable redemption date, of the Bonds such moneys were deposited and are held in trust to pay shall, upon the request of the Corporation, be remitted to the Corporation against a written receipt therefor. Notwithstanding the above and foregoing, any remittance of funds from the Paying Agent/Registrar to the Corporation shall be subject to any applicable unclaimed property laws of the State of Texas. SECTION 23: Resolution a Contract - Amendments. This Resolution shall constitute a contract with the Holders from time to time, be binding on the Corporation, and shall not be amended or repealed by the Corporation while any Bond remains Outstanding except as . permitted in this Section. The Corporation, may, without the consent of or notice to any Holders, from time to time and at any time, amend this Resolution in any manner not detrimental to the interests of the Holders, including the curing of any ambiguity, inconsistency, or formal defect or omission herein. In addition, the Corporation may, with the written consent from the owners holding a majority in aggregate principal amount of the Parity Obligations then Outstanding affected thereby, amend, add to, or rescind any of the provisions of this Resolution; provided that, without the written consent of all Holders of Outstanding Bonds effected, no such amendment, addition, or rescission shall (1) extend the time or times of payment of the principal of, premium, if any, and interest on the Bonds, reduce the principal amount thereof, the redemption price therefor, or the rate of interest thereon, or in any other way modify the terms of payment of the principal of, premium, if any, or interest on the Bonds, (2) give any preference to any Bond over any other Bond, or (3) reduce the aggregate principal amount of Bonds or Parity Obligations, as the case may be, required to be held for consent to any such amendment, addition, or rescission. SECTION 24: Mutilated - Destroyed - Lost and Stolen Bonds. In case any Bond shall be mutilated, or destroyed, lost or stolen, the Paying Agent/Registrar may execute and deliver a replacement Bond of like form and tenor, and in the same denomination and bearing a number not contemporaneously outstanding, in exchange and substitution for such mutilated Bond, or in lieu of and in substitution for such destroyed, lost or stolen Bond, only upon the approval of the Corporation and after (i) the filing by the Holder thereof with the Paying Agent/Registrar of evidence satisfactory to the Paying Agent/Registrar of the destruction, loss or theft of such Bond, and of the authenticity of the ownership thereof and (ii) the furnishing to the Paying Agent/Registrar of indemnification in an amount satisfactory to hold the Corporation and the Paying Agent/Registrar harmless. All expenses and charges associated with such indemnity 45059652.1 21 and with the preparation, execution and delivery of a replacement Bond shall be borne by the • Holder of the Bond mutilated, or destroyed, lost or stolen. Every new Bond issued pursuant to this Section in lieu of any mutilated, destroyed, lost, or stolen Bond shall constitute a replacement of the prior obligation of the Corporation, whether or not the mutilated, destroyed, lost, or stolen Bond shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this Resolution equally and ratably with all other Outstanding Bonds. SECTION 25: Notices to Holders - Waiver. Wherever this Resolution provides for notice to Holders of any event, such notice shall be sufficiently given (unless otherwise herein expressly provided) if in writing and sent by United States Mail, first class postage prepaid, to the address of each Holder as it appears in the Security Register. In any case where notice to Holders is given by mail, neither the failure to mail such notice to any particular Holders, nor any defect in any notice so mailed, shall affect the sufficiency of such notice with respect to all other Bonds. Where this Resolution provides for notice in any manner, such notice may be waived in writing by the Holder entitled to receive such notice, either before or after the event with respect to which such notice is given, and such waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the Paying Agent/Registrar, but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver. SECTION 26: Cancellation. All Bonds surrendered for payment, redemption, transfer or exchange, if surrendered to the Paying Agent/Registrar, shall be promptly canceled by it and, if N surrendered to the Corporation, shall be delivered to the Paying Agent/Registrar and, if not already canceled, shall be promptly canceled by the Paying Agent/Registrar. The Corporation may at any time deliver to the Paying Agent/Registrar for cancellation any Bonds previously certified or registered and delivered which the Corporation may have acquired in any manner whatsoever, and all Bonds so delivered shall be promptly canceled by the Paying Agent/Registrar. All canceled Bonds held by the Paying Agent/Registrar shall be destroyed as directed by the Corporation. SECTION 27: Delivery of Bonds in Exchange for Title to Land and Facilities. The Bonds are to be issued to David L. Thorne and Beverly A. Thorne (the "Owners") in exchange for and delivery of a deed conveying unto the City fee simple title to that certain tract of land more particularly described as Lot 4R, Block 1, Greenlee Business Park Addition (900 South Kimball Avenue) and being approximately 12.6 acres, as shown on the plat recorded in Cabinet A, Slide 1930. SECTION 28: Approval and Execution of Financing/Use Agreement with the City. The "Financing/Use Agreement" (the "Agreement") by and between the Corporation and the City, attached hereto as Exhibit B and incorporated herein by reference as a part of this Resolution for all purposes, is hereby approved as to form and content, and such Agreement in substantially the form and substance attached hereto, together with such changes or revisions as may be necessary to accomplish the financing or benefit the Corporation, is hereby authorized to be executed by the President and Secretary of the Board of Directors of the Corporation and as the act and deed of this Board; and such Agreement as executed by said officials shall be deemed approved by the Board and constitute the Agreement herein approved. 45059652.1 22 SECTION 29: Legal Opinion. The obligation of the Owners to accept delivery of the Bonds is subject to being furnished a final opinion of Fulbright & Jaworski L.L.P., Attorneys, Dallas, Texas, approving such Bonds as to their validity, said opinion to be dated and delivered as of the date of delivery and payment for such Bonds. A true and correct reproduction of said opinion is hereby authorized to be printed on the definitive Bonds. SECTION 30: CUSIP Numbers. CUSIP numbers may be printed or typed on the definitive Bonds. It is expressly provided, however, that the presence or absence of CUSIP numbers on the definitive Bonds shall be of no significance or effect as regards the legality thereof and neither the Corporation nor attorneys approving said Bonds as to legality are to be held responsible for CUSIP numbers incorrectly printed or typed on the definitive Bonds. SECTION 31: Control and Custody of Bonds. The President of the Board shall be and is hereby authorized to take and have charge of all necessary orders and records pending investigation by the Attorney General of the State of Texas, and shall take and have charge and control of the Initial Bond(s) pending the approval thereof by the Attorney General, the registration thereof by the Comptroller of Public Accounts and the delivery thereof to the Owners. Furthermore, the President, Vice President or Secretary of the Board of Directors or the Treasurer of the Corporation, any one or more of said officials, are hereby authorized and directed to furnish and execute such documents and certifications relating to the Corporation and the issuance of the Bonds, as may be necessary for the approval of the Attorney General, registration by the Comptroller of Public Accounts and delivery of the Bonds to the initial owners and, together with the Corporation's financial advisor, general counsel, bond counsel and the Paying Agent/Registrar, make the necessary arrangements for the delivery of the Initial Bond(s) to the Owners and the initial exchange thereof for definitive Bonds. SECTION 32: Benefits of Resolution. Nothing in this Resolution, expressed or implied, is intended or shall be construed to confer upon any person other than the Corporation, the Paying Agent/Registrar and the Holders, any right, remedy, or claim, legal or equitable, under or by reason of this Resolution or any provision hereof, this Resolution and all its provisions being intended to be and being for the sole and exclusive benefit of the Corporation, the Paying Agent/Registrar and the Holders. SECTION 33: Inconsistent Provisions. All orders or resolutions, or parts thereof, which are in conflict or inconsistent with any provision of this Resolution are hereby repealed to the extent of such conflict and the provisions of this Resolution shall be and remain controlling as to the matters contained herein. SECTION 34: Governing Law. This Resolution shall be construed and enforced in accordance with the laws of the State of Texas and the United States of America. SECTION 35: Severability. If any provision of this Resolution or the application thereof to any circumstance shall be held to be invalid, the remainder of this Resolution and the application thereof to other circumstances shall nevertheless be valid, and the Board hereby declares that this Resolution would have been enacted without such invalid provision. SECTION 36: Construction of Terms. If appropriate in the context of this Resolution, words of the singular number shall be considered to include the plural, words of the plural 45059652.1 23 number shall be considered to include the singular, and words of the masculine, feminine or neuter gender shall be considered to include the other genders. SECTION 37: Public Meeting. It is officially found, determined, and declared that the meeting at which this Resolution is adopted was open to the public and public notice of the time, place, and subject matter of the public business to be considered at such meeting, including this Resolution, was given, all as required by V.T.C.A., Government Code, Chapter 551, as amended. SECTION 38: Effective Date. This Resolution shall be in force and effect from and after its passage on the date shown below. PASSED AND ADOPTED, this July 17, 2001. SOUTHLAKE PARKS DEVELOPMENT CORPORATION President, Bo., d of Directors T: Secretary, Bo of Directors 11) (Corporation Seal) 45059652.1 24 set-oho I svi • PAYING AGENT/REGISTRAR AGREEMENT THIS AGREEMENT entered into as of July 17, 2001 (this "Agreement"), by and between the Southlake Parks Development Corporation (the "Issuer"), and The Chase Manhattan Bank, a New York banking corporation organized and existing under the laws of the State of New York and authorized to do business in the State of Texas (the "Bank"), RECITALS WHEREAS, the Issuer has duly authorized and provided for the issuance of its "Southlake Parks Development Corporation Taxable Sales Tax Third Lien Revenue Bonds, Series 2001-A" (the "Securities") in the aggregate principal amount of $1,500,000, which Securities are scheduled to be delivered to the initial purchasers on or about September 4, 2001; and WHEREAS, the Issuer has selected the Bank to serve as Paying Agent/Registrar in connection with the payment of the principal of, premium, if any, and interest on said Securities and with respect to the registration, transfer and exchange thereof by the registered owners thereof; and • WHEREAS, the Bank has agreed to serve in such capacities for and on behalf of the Issuer and has full power and authority to perform and serve as Paying Agent/Registrar for the Securities; p NOW, THEREFORE, it is mutually agreed as follows: ARTICLE ONE APPOINTMENT OF BANK AS PAYING AGENT AND REGISTRAR Section 1.01. Appointment. The Issuer hereby appoints the Bank to serve as Paying Agent with respect to the Securities, and, as Paying Agent for the Securities, the Bank shall be responsible for paying on behalf of the Issuer the principal, premium (if any), and interest on the Securities as the same become due and payable to the registered owners thereof; all in accordance with this Agreement and the "Bond Resolution" (hereinafter defined). The Issuer hereby appoints the Bank as Registrar with respect to the Securities and, as Registrar for the Securities, the Bank shall keep and maintain for and on behalf of the Issuer books and records as to the ownership of said Securities and with respect to the transfer and exchange thereof as provided herein and in the "Bond Resolution". The Bank hereby accepts its appointment, and agrees to serve as the Paying Agent and Registrar for the Securities. Section 1.02. Compensation. As compensation for the Bank's services as Paying Agent/Registrar, the Issuer hereby agrees to pay the Bank the fees and amounts set forth in Annex A attached hereto for the first year of this Agreement and thereafter the fees and amounts set forth in the Bank's current fee schedule then in effect for services as Paying Agent/Registrar for municipalities, which shall be supplied to the Issuer on or before 90 days prior to the close of the Fiscal Year of the Issuer, and shall be effective upon the first day of the following Fiscal Year. 45059872.1 1 • In addition, the Issuer agrees to reimburse the Bank upon its request for all reasonable expenses, disbursements and advances incurred or made by the Bank in accordance with any of the provisions hereof (including the reasonable compensation and the expenses and disbursements of its agents and counsel). ARTICLE TWO DEFINITIONS Section 2.01. Definitions. For all purposes of this Agreement, except as otherwise expressly provided or unless the context otherwise requires: "Acceleration Date" on any Security means the date on and after which the principal or any or all installments of interest, or both, are due and payable on any Security which has become accelerated pursuant to the terms of the Security. "Bank Office" means the designated office of the Bank as indicated in Section 3.01 hereof. The Bank will notify the Issuer in writing of any change in location of the Bank Office. "Bond Resolution" means the resolution, order, or ordinance of the governing body of the Issuer pursuant to which the Securities are issued, certified by the Secretary or any other officer of the Issuer and delivered to the Bank. "Fiscal Year" means the fiscal year of the Issuer, ending September 30th. "Holder" and "Security Holder" each means the Person in whose name a Security is registered in the Security Register. "Issuer Request" and "Issuer Order" means a written request or order signed in the name of the Issuer by the President, Vice President or Secretary of the Board of Directors or Treasurer of the Corporation, any one or more of said • officials, and delivered to the Bank. "Legal Holiday" means a day on which the Bank is required or authorized to be closed. "Person" means any individual, corporation, partnership, joint venture, association, joint - stock company, trust, unincorporated organization or government or any agency or political subdivision of a government. "Predecessor Securities" of any particular Security means every previous Security evidencing all or a portion of the same obligation as that evidenced by such particular Security (and, for the purposes of this definition, any mutilated, lost, destroyed, or stolen Security for which a replacement Security has been registered and delivered in lieu thereof pursuant to Section 4.06 hereof and the Resolution). 45059872.1 2 EXHIBIT A • "Redemption Date" when used with respect to any Security to be redeemed means the date fixed for such redemption pursuant to the terms of the Bond Resolution. "Responsible Officer" when used with respect to the Bank means the Chairman or Vice-Chairman of the Board of Directors, the Chairman or Vice-Chairman of the Executive Committee of the Board of Directors, the President, any Vice President, the Secretary, any Assistant Secretary, the Treasurer, any Assistant Treasurer, the Cashier, any Assistant Cashier, any Trust Officer or Assistant Trust Officer, or any other officer of the Bank customarily performing functions similar to those performed by any of the above designated officers and also means, with respect to a particular corporate trust matter, any other officer to whom such matter is referred because of his knowledge of and familiarity with the particular subject. "Security Register" means a register maintained by the Bank on behalf of the Issuer providing for the registration and transfers of Securities. "Stated Maturity" means the date specified in the Bond Resolution the principal of a Security is scheduled to be due and payable. Section 2.02. Other Definitions. The terms "Bank," "Issuer," and "Securities (Security)" have the meanings assigned to them in the recital paragraphs of this Agreement. 11. The term "Paying Agent/Registrar" refers to the Bank in the performance of the duties and functions of this Agreement. ARTICLE THREE PAYING AGENT Section 3.01. Duties of Paying Agent As Paying Agent, the Bank shall, provided adequate collected funds have been provided to it for such purpose by or on behalf of the Issuer, pay on behalf of the Issuer the principal of each Security at its Stated Maturity, Redemption Date, or Acceleration Date, to the Holder upon surrender of the Security to the Bank at the following address: P. O. Box 2320, Dallas, Texas 75221-2320 or 2001 Bryan Street, 9th Floor, Dallas, Texas 75201, Attention: Institutional Trust Services. As Paying Agent, the Bank shall, provided adequate collected funds have been provided to it for such purpose by or on behalf of the Issuer, pay on behalf of the Issuer the interest on each Security when due,-by computing the amount of interest to be paid each Holder and making payment thereof to the Holders of the Securities (or their Predecessor Securities) on the Record Date. All payments of principal and/or interest on the Securities to the registered owners shall be accomplished (1) by the issuance of checks, payable to the registered owners, drawn on the fiduciary account provided in Section 5.05 hereof, sent by United States mail, first class, postage prepaid, to the address appearing on the Security Register or (2) by such other method, acceptable to the Bank, requested in writing by the Holder at the Holder's risk and expense. Section 3.02. Payment Dates. The Issuer hereby instructs the Bank to pay the principal of and interest on the Securities at the dates specified in the Bond Resolution. 45059872.1 3 EXHIBIT ARTICLE FOUR REGISTRAR Section 4.01. Security Register- Transfers and Exchanges. The Bank agrees to keep and maintain for and on behalf of the Issuer at the Bank Office books and records (herein sometimes referred to as the "Security Register") for recording the names and addresses of the Holders of the Securities, the transfer, exchange and replacement of the Securities and the payment of the principal of and interest on the Securities to the Holders and containing such other information as may be reasonably required by the Issuer and subject to such reasonable regulations as the Issuer and Bank may prescribe. All transfers, exchanges and replacement of Securities shall be noted in the Security Register. Every Security surrendered for transfer or exchange shall be duly endorsed or be accompanied by a written instrument of transfer, the signature on which has been guaranteed by an officer of a federal or state bank or a member of the National Association of Securities Dealers, in form satisfactory to the Bank, duly executed by the Holder thereof or his agent duly authorized in writing. The Bank may request any supporting documentation it feels necessary to effect a re-registration, transfer or exchange of the Securities. To the extent possible and under reasonable circumstances, the Bank agrees that, in relation to an exchange or transfer of Securities, the exchange or transfer by the Holders thereof will be completed and new Securities delivered to the Holder or the assignee of the Holder in p not more than three (3) business days after the receipt of the Securities to be cancelled in an exchange or transfer and the written instrument of transfer or request for exchange duly executed by the Holder, or his duly authorized agent, in form and manner satisfactory to the Paying Agent/Registrar. Section 4.02. Certificates. The Issuer shall provide an adequate inventory of printed Securities to facilitate transfers or exchanges thereof. The Bank covenants that the inventory of printed Securities will be kept in safekeeping pending their use and reasonable care will be exercised by the Bank in maintaining such Securities in safekeeping, which shall be not less than the care maintained by the Bank for debt securities of other governments or corporations for which it serves as registrar, or that is maintained for its own securities. Section 4.03. Form of Security Register. The Bank, as Registrar, will maintain the Security Register relating to the registration, payment, transfer and exchange of the Securities in accordance with the Bank's general practices and procedures in effect from time to time. The Bank shall not be obligated to maintain such Security Register in any form other than those which the Bank has currently available and currently utilizes at the time. The Security Register may be maintained in written form or in any other form capable of being converted into written form within a reasonable time. Section 4.04. List of Security Holders. The Bank will provide the Issuer at any time requested by the Issuer, upon payment of the required fee, a copy of the information contained in the Security Register. The Issuer may also inspect the information contained in the Security Register at any time the Bank is customarily open for business, provided that reasonable time is allowed the Bank to provide an up-to-date listing or to convert the information into written form. 45059872.1 4 EXHIBIT A 11/ The Bank will not release or disclose the contents of the Security Register to any person other than to, or at the written request of, an authorized officer or employee of the Issuer, except upon receipt of a court order or as otherwise required by law. Upon receipt of a court order and prior to the release or disclosure of the contents of the Security Register, the Bank will notify the Issuer so that the Issuer may contest the court order or such release or disclosure of the contents of the Security Register. Section 4.05. Return of Cancelled Certificates. The Bank will, at such reasonable intervals as it determines, surrender to the Issuer, Securities in lieu of which or in exchange for which other Securities have been issued, or which have been paid. Section 4.06. Mutilated, Destroyed, Lost or Stolen Securities. The Issuer hereby instructs the Bank, subject to the provisions of Section 24 of the Bond Resolution, to deliver and issue Securities in exchange for or in lieu of mutilated, destroyed, lost, or stolen Securities as long as the same does not result in an overissuance. In case any Security shall be mutilated, or destroyed, lost or stolen, the Bank may execute and deliver a replacement Security of like form and tenor, and in the same denomination and bearing a number not contemporaneously outstanding, in exchange and substitution for such mutilated Security, or in lieu of and in substitution for such destroyed lost or stolen Security, only upon the approval of the Issuer and after (i) the filing by the Holder thereof with the Bank of evidence satisfactory to the Bank of the destruction, loss or theft of such Security, and of the authenticity of the ownership thereof and (ii) the furnishing to the Bank of indemnification in an amount satisfactory to hold the Issuer and the Bank harmless. All expenses and charges associated with such indemnity and with the preparation, execution and delivery of a replacement Security shall be borne by the Holder of the Security mutilated, or destroyed, lost or stolen. Section 4.07. Transaction Information to Issuer. The Bank will, within a reasonable time after receipt of written request from the Issuer, furnish the Issuer information as to the Securities it has paid pursuant to Section 3.01, Securities it has delivered upon the transfer or exchange of any Securities pursuant to Section 4.01, and Securities it has delivered in exchange for or in lieu of mutilated, destroyed, lost, or stolen Securities pursuant to Section 4.06. ARTICLE FIVE THE BANK Section 5.01. Duties of Bank The Bank undertakes to perform the duties set forth herein and agrees to use reasonable care in the performance thereof. Section 5.02. Reliance on Documents, Etc (a) The Bank may conclusively rely, as to the truth of the statements and correctness of the opinions expressed therein, on certificates or opinions furnished to the Bank. (b) The Bank shall not be liable for any error of judgment made in good faith by a Responsible Officer, unless it shall be proved that the Bank was negligent in ascertaining the pertinent facts. (c) No provisions of this Agreement shall require the Bank to expend or risk its own • funds or otherwise incur any financial liability for performance of any of its duties hereunder, or in the exercise of any of its rights or powers, if it shall have reasonable grounds for believing 45059872.1 5 EXHIBIT P • that repayment of such funds or adequate indemnity satisfactory to it against such risks or liability is not assured to it. (d) The Bank may rely and shall be protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, note, security, or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties. Without limiting the generality of the foregoing statement, the Bank need not examine the ownership of any Securities, but is protected in acting upon receipt of Securities containing an endorsement or instruction of transfer or power of transfer which appears on its face to be signed by the Holder or an agent of the Holder. The Bank shall not be bound to make any investigation into the facts or matters stated in a resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, note, security, or other paper or document supplied by Issuer. (e) The Bank may consult with counsel, and the written advice of such counsel or any opinion of counsel shall be full and complete authorization and protection with respect to any action taken, suffered, or omitted by it hereunder in good faith and in reliance thereon. (f) The Bank may exercise any of the powers hereunder and perform any duties hereunder either directly or by or through agents or attorneys of the Bank. Section 5.03. Recitals of Issuer. The recitals contained herein with respect to the Issuer and in the Securities shall be taken as the statements of the Issuer, and the Bank assumes no responsibility for their correctness. • The Bank shall in no event be liable to the Issuer, any Holder or Holders of any Security, or any other Person for any amount due on any Security from its own funds. Section 5.04. May Hold Securities The Bank, in its individual or any other capacity, may become the owner or pledgee of Securities and may otherwise deal with the Issuer with the same rights it would have if it were not the Paying Agent/Registrar, or any other agent. Section 5.05. Moneys Held by Bank - Paying agent Account/Collateralization. A paying agent account shall at all times be kept and maintained by the Bank for the receipt, safekeeping and disbursement of moneys received from the Issuer hereunder for the payment of the Securities, and money deposited to the credit of such account until paid to the Holders of the Securities shall be continuously collateralized by securities or obligations which qualify and are eligible under both the laws of the State of Texas and the laws of the United States of America to secure and.be pledged as collateral for paying agent accounts to the extent such money is not insured by the Federal Deposit Insurance Corporation. Payments made from such account shall be made by check drawn on such account unless the owner of such Securities shall, at its own expense and risk, request such other medium of payment. The Bank shall be under no liability for interest on any money received by it hereunder. Subject to the applicable unclaimed property laws of the State of Texas, any money deposited with the Bank for the payment of the principal, premium (if any), or interest on any Security and remaining unclaimed for three years after final maturity of the Security has become due and payable will be paid by the Bank to the Issuer, and the Holder of such Security shall 45059872.1 6 EXHIBIT A. thereafter look only to the Issuer for payment thereof, and all liability of the Bank with respect to such moneys shall thereupon cease. Section 5.06. Indemnification. To the extent permitted by law, the Issuer agrees to indemnify the Bank for, and hold it harmless against, any loss, liability, or expense incurred without negligence or bad faith on its part, arising out of or in connection with its acceptance or administration of its duties hereunder, including the cost and expense against any claim or liability in connection with the exercise or performance of any of its powers or duties under this Agreement. Section 5.07. Interpleader. The Issuer and the Bank agree that the Bank may seek adjudication of any adverse claim, demand, or controversy over its person as well as funds on deposit, in either a Federal or State District Court located in the State and County where either the Bank Office or the administrative offices of the Issuer is located, and agree that service of process by certified or registered mail, return receipt requested, to the address referred to in Section 6.03 of this Agreement shall constitute adequate service. The Issuer and the Bank further agree that the Bank has the right to file a Bill of Interpleader in any court of competent jurisdiction to determine the rights of any Person claiming any interest herein. Section 5.08. DT Services. It is hereby represented and warranted that, in the event the Securities are otherwise qualified and accepted for "Depository Trust Company" services or equivalent depository trust services by other organizations, the Bank has the capability and, to the extent within its control, will comply with the "Operational Arrangements", which establishes requirements for securities to be eligible for such type depository trust services, including, but not limited to, requirements for the timeliness of payments and funds availability, transfer turnaround time, and notification of redemptions and calls. ARTICLE SIX MISCELLANEOUS PROVISIONS Section 6.01. Amendment This Agreement may be amended only by an agreement in writing signed by both of the parties hereto. Section 6.02. Assignment. This Agreement may not be assigned by either party without the prior written consent of the other. Section 6.03. Notices. Any request, demand, authorization, direction, notice, consent, waiver, or other document provided or permitted hereby to be given or furnished to the Issuer or the Bank shall be mailed or delivered to the Issuer or the Bank, respectively, at the addresses shown on page 9. - Section 6.04. Effect of Headings The Article and Section headings herein are for convenience only and shall not affect the construction hereof. Section 6.05. Successors and Assigns. All covenants and agreements herein by the Issuer shall bind its successors and assigns, whether so expressed or not. Section 6.06. Severability. In case any provision herein shall be invalid, illegal, or unenforceable, the validity, legality, and enforceability of the remaining provisions shall not in • any way be affected or impaired thereby. 45059872.1 7 EXHIBIT • Section 6.07. Benefits of Agreement Nothing herein, express or implied, shall give to any Person, other than the parties hereto and their successors hereunder, any benefit or any legal or equitable right, remedy, or claim hereunder. Section 6.08. Entire Agreement. This Agreement and the Bond Resolution constitute the entire agreement between the parties hereto relative to the Bank acting as Paying Agent/Registrar and if any conflict exists between this Agreement and the Bond Resolution, the Bond Resolution shall govern. Section 6.09. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original and all of which shall constitute one and the same Agreement. Section 6.10. Termination. This Agreement will terminate (i) on the date of final payment of the principal of and interest on the Securities to the Holders thereof or (ii) may be earlier terminated by either party upon sixty (60) days written notice; provided, however, an early termination of this Agreement by either party shall not be effective until (a) a successor Paying Agent/Registrar has been appointed by the Issuer and such appointment accepted and (b) notice given to the Holders of the Securities of the appointment of a successor Paying Agent/Registrar. Furthermore, the Bank and Issuer mutually agree that the effective date of an early termination of this Agreement shall not occur at any time which would disrupt, delay or otherwise adversely affect the payment of the Securities. Upon an early termination of this Agreement, the Bank agrees to promptly transfer and deliver the Security Register (or a copy thereof), together with other pertinent books and records relating to the Securities, to the successor Paying Agent/Registrar designated and appointed by the Issuer. The provisions of Section 1.02 and of Article Five shall survive and remain in full force and effect following the termination of this Agreement. Section 6.11. Governing Law. This Agreement shall be construed in accordance with and governed by the laws of the State of Texas. • 45059872.1 8 EXHIBIT A IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written. THE CHASE MANHATTAN BANK BY Title: [SEAL] Address: Attest: 600 Travis, Suite 1150 Houston, Texas 77002 Title: SOUTHLAKE PARKS DEVELOPMENT CORPORATION President, Board of Directors (CORPORATION SEAL) Address: 11111 667 N. Carroll Avenue Attest: Southlake, Texas 76092 Secretary, Board of Directors 45059872.1 9 EXHIBIT A. FINANCING/USE AGREEMENT �J This Financing/Use Agreement (this "Agreement') is made to be effective as of the 17th day of July, 2001, by and between the City of Southlake, Texas, a duly incorporated and existing municipal corporation and political subdivision of the State of Texas (the "City") and the Southlake Parks Development Corporation, a non-profit industrial development corporation organized and existing under the laws of the State of Texas, including Vernon's Ann. Civ. St., Section 4B of Article 5190.6, (the "Corporation") RECITALS WHEREAS, the Corporation on behalf of the City is to finance a park project involving the acquisition of land, buildings, equipment, facilities and improvements required or suitable for use for professional and amateur (including children's) sports, athletic, entertainment, and public park purposes and events, including stadiums and ball parks (Texas School of Baseball)-(the "Project"); and WHEREAS, such financing contemplates the issuance and delivery of the Corporation's taxable bonds in the principal amount of$1,500,000 to the owners of the land and facilities upon ownership of such land and facilities being transferred to the City; and WHEREAS, the Corporation shall have no duties or responsibilities with respect to the Project other than to finance the acquisition of such land and facilities for and on behalf of the City; PAGREEMENT 1. Financing of Project: For and in consideration of the City's covenants and agreements herein contained and subject to the terms contained herein, the Corporation hereby agrees to issue a series of obligations to be known as "Southlake Parks Development Corporation Taxable Sales Tax Third Lien Revenue Bonds, Series 2001-A", hereinafter called the "Bonds", and deliver the same to David L. Thorne and Beverly A. Thorne in exchange for and upon the transfer of the ownership of the Project to the City. 2. Use of Project. Until all the Bonds have been fully paid, discharged and retired, the upkeep and maintenance of the Project will be the responsibility of the City and the Corporation shall have no responsibility with respect to the operation, upkeep and maintenance of the Project. 3. Receipt and Transfer of Proceeds of Sales Tax. The City agrees, in cooperation with the Corporation, to take such actions as are required to cause the "Gross Sales Tax Revenues" (as such term is defined in the resolution authorizing the issuance of the Bonds) received from the Comptroller of Public Accounts of the State of Texas for and on behalf of the Corporation to be transferred and deposited immediately upon receipt by the City to the credit of the banking or monetary fund maintained at the depository designated by the Corporation and known on the books and records of the Corporation as the "Pledged Revenue Fund". 4. Modifications. This Agreement shall not be changed orally, and no executory agreement shall be effective to waive, change, modify or discharge this Agreement in whole or in part unless such executory agreement is in writing and is signed by the parties against whom enforcement of any waiver, change, modification or discharge is sought. 45059875.1 1 5. Entire Agreement. This Agreement, including the Exhibits, contains the entire • agreement between the parties pertaining to the subject matter hereof and fully supersedes all prior agreements and understandings between the parties pertaining to such subject matter. 6. Counterparts. This Agreement may be executed in several counterparts, and all such executed counterparts shall constitute the same agreement. It shall be necessary to account for only one such counterpart in proving this Agreement. 7. Severability. If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid or unenforceable, the remainder of this Agreement shall nonetheless remain in full force and effect. 8. Applicable Law. This Agreement shall in all respects be governed by, and construed in accordance with, the substantive federal laws of the United States and the laws of the State of Texas. 9. Captions. The section headings appearing in this Agreement are for convenience of reference only and are not intended, to any extent and for any purpose, to limit or define the text of any section or any subsection hereof. IN WITNESS WHEREOF, the parties hereto have executed this Agreement to be effective as of the date and year first above written. SOUTHLAKE PARKS DEVELOPMENT CORPORATION S President, Board of Directors ATTEST: Secretary, Board of Directors (Corporation Seal) CITY OF SOUTHLAKE, TEXAS Mayor ATTEST: City Secretary (City Seal) 45059875.1 2 EXHIBIT B City of Southlake, Texas SOUTHLAKE PARKS DEVELOPMENT CORPORATION BOARD MEETING Monday, July 23, 2001 LOCATION: Town Hall Council Chamber 1400 Main Street, Southlake, Texas REGULAR SESSION 6:00 P.M.: 1. Call to order. 2. Executive Session: Pursuant to the Open Meetings Act, Chapter 551 of the Texas Government Code, Section 551.071, consultation with attorney, Section 551.072, deliberation regarding real property, and/or Section 551.073, deliberation regarding prospective gift. 3. Reconvene: Action necessary on items discussed in executive session 4. PUBLIC FORUM CONSENT AGENDA: . All items listed below are considered to be routine by the Southlake Parks Development Corporation Board and will be enacted with one motion. There will be no separate discussion of items unless a Board member or citizen so requests, in which event the item will be removed from the general order of business and considered in its normal sequence. 5. Consent: A. Approval of the minutes for the regular SPDC meeting held June 19, 2001 and the Special SPDC meeting held June 26, 2001. REGULAR AGENDA: 6. Consider: A. Award of bid to Choate Irrigation for irrigation improvements at Chesapeake Park. PUBLIC HEARING B. Award of bid to Sturdisteel Company for bleachers and approval of Change Order #1 for additional bleachers. PUBLIC HEARING C. Award of bid to R.J. Thomas Manufacturing Company for park benches. PUBLIC HEARING SPDC Board Meeting July 23, 2001 Page 2 • D. Proposed 5-year Capital Improvements Plan CIP priority rankings 7. Discussion: A. Programming and Design of Recreation Center B. Board Meeting dates and times C. Sales Tax Report D. Project Status Report 8. Adjournment CERTIFICATE I hereby certify that the above agenda was posted on the Official Bulletin Boards at Town Hall, 1400 Main Street, on Friday, July 20, 5:00 p.m.,pursuant to the Texas Government Code, Chapter 551. ttt '•. Sandra L. LeGrandS.v;• City Secretary If you plan to attend this meeting and have a disability that requires special needs, please advise the City Secretary 48 hours in advance at 481-1519, and reasonable accommodations will be made to assist you. EXECUTIVE SESSION S Southlake Parks Development Corporation Board SECTION 551.071 CONSULTATION WITH ATTORNEY The Southlake Parks Development Corporation Board may conduct a private consultation with its attorney when the Board seeks the advise of its attorney concerning any item on this agenda, about pending and contemplated litigations, or a settlement offer, or on a matter in which the duty of the attorney to the Southlake Parks Development Board under the Texas Disciplinary Rules of Professional Conduct of the State Board of Texas clearly conflicts with Chapter 551. SECTION 551.072 DELIBERATION REGARDING REAL PROPERTY The Southlake Parks Development Corporation Board may conduct a closed meeting to deliberate the purchase, exchange, lease or value of real property. SECTION 551.073 DELIBERATION REGARDING PROSPECTIVE GIFT The Southlake Parks Development Corporation Board may conduct a closed meeting to deliberate a negotiated contract for a prospective gift or donation to the City. A FINAL ACTION, DECISION, OR VOTE ON A MATTER DELIBERATED IN A CLOSED MEETING MAY ONLY BE MADE IN OPEN SESSION. SOUTHLAKE PARKS DEVELOPMENT CORPORATION MEETING July 23, 2001 MINUTES Board Members Present: President Ralph Evans; Members: Tim O'Conner, Rex Potter, Bobby Rawls, Rick Stacy. Board Members Absent: Tom Stephen Staff Present: Director of Community Services Kevin Hugman, Deputy Director of Community Services Steve Polasek, Senior Parks Planner Chris Carpenter, Finance Director Sharen Elam, and Executive Secretary Kim Bush. Agenda Item No. 1, Call to order. The meeting was called to order by President Ralph Evans at 6:10 p.m. Agenda Item No. 2, Executive Session. No executive session was necessary. Agenda Item No. 4. Public Forum. Ms. Kelli C. Rile Pr esident resident of Southlake Carroll Lacrosse Association, addressed the Board about a request to include "box lacrosse" in the build-out for the new recreation center. She also commented on the need for outdoor fields. Ms. Riley's formal statement and request is attached to the minutes for the record. Director of Community Services Kevin Hugman suggested that this request be included in the CIP for discussion at the next Board meeting, noting that one of the proposed projects included lighting of the Carroll Intermediate School football field, which would then make it available for lacrosse practice and games. CONSENT AGENDA. Item No. 5A. Approval of the minutes for the regular SPDC meeting held June 19, 2001 and the Special SPDC meeting held June 26, 2001. Motion was made to approve the minutes for the regular SPDC meeting held June 19 and the Special SPDC meeting held June 26, 2001 as presented. Motion: Stacy Second: Potter Ayes: Evans, O'Conner, Potter, Rawls, Stacy, Stephens Nays: none SPDC Meeting Minutes, July 23, 2001, Page 1 of 4 Approved: 6-0 .Agenda Item No. 6A. Award of bid to Choate Irrigation for irrigation improvements at Chesapeake Park. Public Hearing. Community Services Director Kevin Hugman informed the Board that Chesapeake Park is an 11-acre neighborhood park acquired through park dedication and currently under construction. He stated that an SPDC matching funds grant was approved in February 2000 with Vista Oaks Development for the construction of the park. Developer costs for the matching funds grant, in addition to the park land dedication, was $125,114 with the City match at $35,794. Mr. Hugman explained that due to the lack of progress and quality of work provided, the City took the project over in March of 2001. The developer paid the City $35,826, and in addition to the $35,794 in unspent matching funds, would cover the costs of final grading, irrigation, and landscape installation. The irrigation plan prepared by staff will serve this park as well as the 3-acre area obtained through a joint-use agreement with St. Martin-in-the-Fields Episcopal Church for soccer and ballfield practice facilities. The project is expected to be complete this fall. Mr. Hugman informed the Board that irrigation costs were estimated at $40,000, leaving $31,620 unencumbered for final grading ($12,000), hydromulch ($15,000), and contingency ($4,620). There were no comments from the audience during the public hearing. Motion was made to award bid to Choate Irrigation for irrigation improvements at Chesapeake Park. pp Motion: Stacy Second: Potter Ayes: Evans, O'Conner, Potter, Rawls, Stacy, Stephens Nays: none Approved: 6-0 Agenda Item No. 6B. Award of bid to Sturdisteel Company for bleachers and approval of Change Order #1 for additional bleachers. Public Hearing. Director Hugman commented that the bids on this project were separated into two categories (bleachers and player benches - agenda item 6C) with the City reserving the right to award the low bid in each category. Sturdisteel Company submitted the low bid in the amount of$14,452. Because of the excellent pricing, staff also is requesting a change order in the amount of$2,616 for six additional bleachers to be used at the Tennis Center (4) and Bob Jones Park (2) which is still well within the budgeted amount of$35,000. Deputy Director Polasek commented that 4 bleachers are all that will fit at the tennis center. There were no comments from the audience during public forum. Motion was made to approve award of bid to Sturdisteel Company for bleachers and Change Order #1 for additional bleachers. Motion: Potter Second: Rawls SPDC Meeting Minutes, July 23, 2001, Page 2 of 4 Ayes: Evans, O'Conner, Potter, Rawls, Stacy, Stephens Nays: none Approved: 6-0 Agenda Item No. 6C. Award of bid to R.J. Thomas Manufacturing Company for park benches. Director Hugman commented that R.J. Thomas Manufacturing Company submitted the low bid for the player benches in the amount of$6,726.20. Mr. Hugman explained that a lower bid of$6,400 was received, however, the bidder bid the project as a total bid (benches and bleachers) or nothing. Deputy Director Polasek commented that the player benches would be removed and stored during the off season. There were no comments from the audience during the public hearing. Motion was made to award bid to R.J. Thomas Manufacturing Company for park (player) benches. Motion: Potter Second: O'Conner Ayes: Evans, O'Conner, Potter, Rawls, Stacy, Stephens Nays: none Approved: 6-0 Agenda Item No. 6D. Proposed 5-year Capital Improvements Plan CIP priority rankings. Director Hugman explained to the Board that this year for the budget process a staff CIP Technical NCommittee was formed to evaluate all CIP projects together (SPDC, Utility Fund, Crime Control, TIF District, General Fund, etc.). A ranking and scoring system was then used to evaluate all projects based on categories relating to health, safety, welfare, economy of scale, combination with other projects, revenue generation, maintenance requirements, etc. The result of the exercise will hopefully give the various boards and officials a preliminary and objective ranking of projects in each funding source. Senior Planner Chris Carpenter made a presentation of all the SPDC projects to the Board. Comments from the Board included the following: • All outlying neighborhood parks needed to have some improvements made to them i.e., picnic and playground (basketball, swings, etc.) areas. • Consider temporary parking made from shredded shingles. • Skateboarding area needed at Bicentennial Park - take to Park Board for their consideration. • Consider using Tucker house for nature center at Bob Jones Park (or Lodge building). Do not like the idea of spending $100,000 to renovate the mobile building. • Talk with Park Board and SPDC about ice rink - and where it would rank. • Look at indoor tennis center - it might pay for itself. • Consider lighting outdoor basketball courts. • Look at old Metropool property - how can it be used. Director Hugman commented that it is currently being used for park and public works storage. SPDC Meeting Minutes, July 23, 2001, Page 3 of 4 Mr. Hugman stated that the preliminary priority rankings of projects was included in the Board's packet. He asked that the Board review and return their rankings to him by tomorrow. 111/ Agenda Item No. 7A. Discussion. Programming and Design of Recreation Center. Director Hugman stated that the July 17 SPDC meeting the Board directed staff to reduce the size of the recreation center to approximately 27,000 square feet, with a total construction budget not to exceed $4.1 million. He commented that staff is working with the architects to accomplish this directive, however, prior to eliminating any functional areas, staff desires that the Board provide input as to recommendations. Brad Kimura YMCA Vice President of Operations was present at the meeting to provide information regarding other YMCA facilities. Mr. Kimura commented that he worked with Mr. Hugman on the types of things that needed to be addressed in the design of this recreation center and believed a more appropriate size would be no less than 40,000 square feet. He said that one of the most important things to consider when trying to reduce the size of the center is to keep in mind safety issues - of spectators and participants. The Board agreed that staff should look at reducing the size of the gym and eliminating the office space for now. They agreed that a 30,000 square foot center with a cost estimate of$4.5 million to 5.0 million for construction would be more appropriate. Board members commented that the center should be designed to allow for expansion in future years. Agenda Item No. 7B. Board Meeting dates and times. 11. Board members agreed that extended agenda meetings needed to be planned for at the quarterly meetings on the 3rd Monday of the month. All other shorter agenda meetings should be conducted prior to the 3rd regular City Council meetings. Agenda Items No. 7C & 7D. Sales Tax and Project Status Reports. There were no questions or concerns from the Board. Agenda Item No. 8 Adjournment. Motion was made and carried to adjourn the meeting at 10:00 p.m. i4a1f President Ralp Evans ATTEST: / '. Kim I:ush Ex- utive Secretary SPDC Meeting Minutes, July 23, 2001, Page 4 of 4 SOUTHLAKE CARROLL LACROSSE ASSOCIATION • P.O. Box 93237 Southlake,Texas 76092 Dear SPDC Members: The Southlake Carroll Lacrosse Asso_ciatian formally requests consideration for accommodating "box lacrosse" in the build-out of the new recreation center. Basically, the box lacrosse league would be played in the summer months, possibly winter. Currently, we have plenty of interest in this type of league. With just our associations players,we could have 20 teams of 5. By the time buildaut of the center arrives,you can plan on double that number not including the attraction we will have from teams across the metroplex like Highland Park and Coppell who will want to participate}of course for a fee. All players participate as this type of program really enhances our players stick skills as one can imagine in such a confined area. This_program will appeal to girls and boys alike. Once again, I offer the services of our experienced, volunteer lacrosse coaches/administration to PIPassist in the specifics of what would be needed. As with most programs, it then becomes lust a scheduling issue to balance out with the likes of basketball and summer/winter programs. On behalf of the Southlake Carroll Lacrosse Association,I appreciate your full consideration in our request to accommodate box lacrosse in the design structure of the new recreation facility. Regards, itztai_L\ Kelli C. Riley President, Southlake Carroll Lacrosse Association spdcboxlacrossea2001 SOUTHLAKE CARROLL LACROSSE ASSOCIATION P.O. Box 93237 Southlake, Texas 76092 July 23, 2001 Dear SPDC Members: Good evening. I am Kelli Riley, 208 Bob-O-Link Drive. I am president of the Southlake Carroll Lacrosse Association. The Southlake Carroll Lacrosse_Association .anon-profit group, was officially formed in October, 2000. Our recreational club's inaugural year featured 113 players. Our charter members had many highlights during_their year including_posting winning_seasons and having varsity girls and boys selected for all state honors. As wonderful as that is, the biggest highlight was having_another sport in Southlake where.every child plays. This "no-cut" philosophy puts our children first in an effort to enhance their overall development. All of our coaches are_volunteers and collectively bring some 175 years of lacrosse experience to our club. Because of our tremendous efforts to keep our children first,we are bracing to at least double our participation numbers for the 2001-2002 season which runs from . August-October for varsity and November through May for all players. I have even been approached to have a Southlake Men's Lacrosse team that is wanting to form this season. With that in mind, it is imperative to have fields for play. For the November-May season, it becomes necessary to have lights on those fields primarily due to daylight savings time. Needless to say, our organization was enamored with the aspect of the city purchasing the old Texas School of Baseball. The reasons: 1. The fields are lighted. 2. There is ample room for lacrosse fields in the complex. I don't know all the fields dimensions, but I believe a lacrosse field could fit in the outfields of the existing parks. When Coppell built their beautiful_An.dy Brown park for softball, baseball_and_soccer> ey certainly had the foresight to build the fields with lights. As a result, lacrosse garnered lighted field by using two of the baseball outfields. It is my understanding that the softball association has been working diligently for years to have more lighted fields to serve their players. I respect their tenacity and wish them the best. I certainly hope that we can work together to make the TSB complex and our practice field a reality. Once that is done,it becomes a simple issue of scheduling out that field (s). II spdc2001 a July 23, 201 Last year, the CISD worked with us in allowing the usage of two school fields. Needless to say in a very short time, given practices of up to four times weekly for hours at a time, those fields became grass poor quickly. We currently are in negotiations once again to try to garner fields for practice and play in cooperation with CISD. What did we do for lights last year? We rented the outfields of one of the big softball fields between their seasons for practice. We made do with the small lights at the end of CIS field, practicing on about 1/4 of that field. We moved half of our beginning of the season varsity games, girls and boys, as well as youth games which needed to be played at night either further back in the season for day play or played on our opp_onents_home.field, of course giving away our advantage. Quite frankly, given our rapid growth and existing support from CISD and you,.the state lacrosse association is watching us very closely. It has been said, that new lacrosse associations should not be able to do what we have done in such a short time. I thank you for you for your continued support and recognition. In summary, the Southlake Carroll Lacrosse Association would like consideration for at least 1 practice field, lighted, at the old Texas School of Baseball complex. We are more than willing to work with planners.of the_reeonfiguration of the.fields_to help_position a lacrosse field to the best and highest use. IP I appreciate your time and look forward to your consideration in this matter. Regards, 1411/A.C. Kelli C. Riley President Southlake Carroll Lacrosse Association spdc2001a July 23, 2001 SOUTHLAKE CARROT..LACROSSE ASSOCIATION SHORT TERM PLAYING FIELD NEEDS 1-3 years 1. At least one-three lighted fields for practice and play. Amenities as bleachers, bathrooms concessions.not..prioritized LONG TERM PLAYING FIELD NEEDS 1. At least 3-4 lighted fields for practice and play. Amenities needed: bleachers, bathrooms, concessions spdc2001a July 23,2001