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Item 4O - Agreement MASTER DEVELOPMENT AGREEMENT BETWEEN THE CITY OF SOUTHLAKE, TEXAS, AND TRADEMARK RETAIL HOLDINGS,LLC This Master Development Agreement (the "Agreement") is entered into between the City of Southlake, a Texas home-rule municipal corporation (the "City"), and Trademark Retail Holdings, LLC, a Texas limited liability company(the"Developer"). The City and the Developer are sometimes referred to herein collectively as the "Parties" or singularly as a"Party". RECITALS WHEREAS, the Developer desires to construct a mixed-use development on approximately 40.209 acres of undeveloped land along State Highway 114 in the City of Southlake, Texas, as more particularly shown and identified on the attached Exhibit A (the "Property"); and WHEREAS, development of the Property will consist of a mix of uses to potentially include commercial,retail,restaurants,hotel, offices, single family residential homes, open space, sidewalks, enhanced streetscapes, green space, water features, and other public and private amenities (collectively referred to as the "Development") in accordance with the Zoning (defined below) and as further described in this Agreement and generally shown and described on the Concept Plan, which is attached to this Agreement as Exhibit B, and the Site Plan, which is attached to this Agreement as Exhibit C; and WHEREAS,the Development is subject to City Zoning Case No. ZA25-0045, as finally approved by the City Council of the City by Ordinance 480-837 (the"Zoning"),and the Developer has applied for certain economic development incentives from the City to assist it in implementing the Development; and WHEREAS,the City has determined that the public benefit to be derived for the City,the region, and the State of Texas from the Development in the City outweighs the cost to the City to provide the economic development incentives; and WHEREAS, the City further finds that providing economic development incentives furthers City-identified goals, including, but not limited to: (a) supporting comprehensive plan implementation; (b) adding to target industry inventory; (c) supporting identified workforce goals related to daytime population; (d) incorporating preferred quality of life benefits such as project enhancements; and (e) constructing infrastructure improvements in alignment with strategic objectives, city goals, and comprehensive plan recommendations; and WHEREAS,the City further finds that providing economic development incentives aligns with the City's comprehensive plan, including: (a) 2035 Vision, Goals, and Objectives; (b) the 2035 SH 114 Corridor Plan; (c)the 2035 SH 114 Sector Plan;(d)the 2035 Economic Development Master Plan; and(e) the 2035 Mobility Master Plan; and Page 1 of 64 City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement WHEREAS,the Developer has requested the City to create a Tax Increment Reinvestment Zone encompassing the commercial portion of the Property(the"TIRZ")consistent with the terms of this Agreement and Chapter 311 of the Texas Tax Code (the "TIRZ Act"); and WHEREAS,in order to incentivize,encourage,and support economic development within the City, increase the tax base, create jobs, and promote employment, development of the Property will be facilitated through the construction, financing, and maintenance of certain public infrastructure (the "Public Improvements" as defined herein); and WHEREAS,the Developer intends to petition the City to create one or more bond funded public improvement districts encompassing the Property (the "PID") in accordance with Chapter 372 Texas Local Government Code, as amended (the "PID Act"); and WHEREAS, the Developer desires the City's assistance to (i) fund the cost for certain Public Improvements and otherwise incentivize the successful completion and operation of the Project from TIRZ revenues and from economic development grants pursuant to this Agreement; and(ii) adopt a PID Assessment Ordinance and Service and Assessment Plan("SAP")to provide for the construction and financing of Public Improvements pursuant to the SAP, payable from Assessments (defined herein) levied against the portion of the Property within the PID (through the issuance of PID Bonds requested by the Developer); and WHEREAS, the City is authorized by Article III, Section 52-a of the Texas Constitution and Chapter 380 of the Texas Local Government Code, and the TIRZ Act, to provide economic development grants and incentives to promote state and local economic development and to stimulate business and commercial activity in the City, and this Agreement constitutes a program of the City under Chapter 380 of the Texas Local Government Code; and WHEREAS, pursuant to the Developer's request funding for the Public Improvements will be made from the payments of(1) Assessments, (2) from TIRZ Revenues (defined below) deposited into an account of the TIRZ Fund (defined below) as provided in this Agreement, (3) the proceeds of PID Bonds (if any), and (4) from City economic development incentives; all of which (1) through (4) above would be made subject to City Council approval and the availability of funding and not from any other source of City funds not designated for such purposes; and WHEREAS, the costs of Public Improvements qualify as project costs under the TIRZ Act and/or the PID Act, and the Parties intend that a portion of TIRZ Revenues and/or Assessment revenues from the Property and Development will be used to fund eligible Public Improvements and other costs as authorized by the TIRZ Act and/or PID Act; and WHEREAS, the development of the Property, including the design, construction, and installation of Public Improvements that will serve the Development,will be of the general benefit to the City and its current and future citizens, including the creation of substantial future tax base for the City, and will enhance the value of all the taxable real property in the TIRZ; and WHEREAS, the construction, installation, financing, and maintenance of the Public Improvements in the TIRZ and the PID and full development of the Property(a)will significantly enhance the value of all the taxable real property in the TIRZ, and will provide a special benefit to Page 2 of 64 City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement the portion of the Property included in the PID, and (b) promote the interests of the City and will serve its public purposes,including,but not limited to(i)developing and diversifying the economy of the City and the state; (ii) eliminating unemployment and underemployment in the City and state; (iii) developing and expanding commerce in the City and state; (iv) stimulating business and commerce within the City and state; and (v) promoting development and redevelopment within the City and state; NOW, THEREFORE, for and in consideration of the Recitals above and the mutual agreements, covenants, and conditions contained herein, and other good and valuable consideration, the Parties hereto agree as follows: ARTICLE I DEFINITIONS For all purposes of this Agreement, except as otherwise expressly provided or unless the context otherwise requires, the terms defined in this Article have the meanings assigned to them in the Recitals or this Article, and all such terms include the plural as well as the singular. "Affiliate" means any other entity directly controlling, or directly controlled by or under direct common control with the Developer. As used in this definition, the term "control," "controlling" or "controlled by" shall mean the possession, directly, of the power either to direct or cause the direction of management or policies of the Developer, whether through the ownership of voting securities or interests,by contract or otherwise, excluding in each case, any lender of the Developer or any affiliate of such lender. "Applicable Law"means any statute, law,treaty, rule, code, ordinance,regulation,permit, certificate, or order of any Governmental Authority, or any judgment, decision, decree,injunction, writ, order or like action of any court, or other Governmental Authority. Applicable Law includes, but is not limited to, the City Regulations. "Approved Plans"means collectively,the Concept Plan, Site Plan, any Development Plan, the Plans and Specifications, the Zoning, and all approved elevations relating to the design and construction of the Development, inclusive of any change orders thereto, which comply with all City Regulations, and which are approved in writing by the City. "Assessments" means those certain assessments levied pursuant to the PID Act on benefitted parcels within the PID for the purpose of paying the eligible costs of the Public Improvements and PID administration costs,PID creation costs, and other eligible costs under the PID Act. "Assessment Funding Agreement" means the agreement between the City and the Developer in which Developer agrees to develop certain Public Improvements for which all or a portion of the costs will be funded from the proceeds of Assessments or the proceeds of PID debt to which Assessments are pledged pursuant to the SAP. "Capital Investment" means the Developer's capitalized costs for the design and construction of the Development, including but not limited to, soft and hard costs related to Page 3 of 64 City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement sitework, development, and building construction costs; land costs, including taxes during construction; architectural and engineering costs; permitting costs; legal and organizational costs; and costs related to tenant improvements. Capital Investment shall be measured at the time of full buildout of the entire Property. "Certificate of Occupancy" means the document issued by the City certifying that a building complies with applicable building codes and other laws, and indicating it to be in a condition suitable for occupation. "Chapter 380 Incentive Grants" shall have the meaning provided in Section 6.01. "City Regulations" means provisions of the Code of Southlake, ordinances not codified, design standards,uniform and international building and construction codes,the Zoning, and other policies duly adopted by the City, which shall be applied to the Development, as they currently exist or as amended and approved in writing by the City. "City Representative" means the City Manager, or the City Manager's designee, which may include a third-party inspector or representative. "City Tax Increment" means, for any given year beginning with the 2026 Tax Year, the City ad valorem property taxes levied on the Property (and improvements thereon) and collected by the City for that year on the captured appraised value of real property taxable by the City for the term of the TIRZ, to be deposited into the TIRZ Fund, and the tax increment generated from General Fund Sales Tax Revenues attributable to the TIRZ and more particularly described in Article VI, to be deposited into the TIRZ Fund. "Commencement of Construction" means that (i) the construction plans have been prepared for the commercial portion of the Development and all approvals thereof required by the City and other applicable Governmental Authorities have been obtained; (ii) all necessary permits permitting construction of the Public Improvements for the commercial portion of the Development have been issued by City and all applicable governmental authorities; and (iii) the Developer's contractor has mobilized on-site to commence construction of the Public Improvements, including mobilization for site grading. "Completion of Construction" means that the City has inspected, approved, and accepted the applicable portion of the Public Improvements and confirmed in writing that they have been built in compliance with the Plans and Specifications and the Approved Plans and such work is substantially completed, such that only minor punch list items remain that can be completed within thirty (30) days, as determined by the City Manager, or her designee. Such determination shall not be unreasonably withheld, denied, conditioned, or delayed so long as the applicable Public Improvements have been constructed in accordance with City Regulations and this Agreement. "Concept Plan"means the concept plan attached to this Agreement as Exhibit B, as such concept plan was approved by the Zoning. Page 4 of 64 City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement "Contractor" means all contractors under prime contracts and subcontractors under sub- contracts as defined by 34 Texas Administrative Code, Section 3.291, and hired by Developer to construct the Development. "Development"means the Public Improvements and private improvements constructed on the entirety of the Property, or outside of the Property to benefit the full development of the Property, consistent with this Agreement. "Development Plan" means the final development plan for the Property approved by the City Council in accordance with the Zoning. "Effective Date"means the date this Agreement is fully executed by the Parties. "Force Majeure" means any event that (i) materially and adversely affects the affected Party's ability to perform the relevant obligations under this Agreement or directly delays such affected Party's ability to do so; (ii)is beyond the reasonable control of the affected Party; and(iii) is not due to the affected Party's fault or negligence; and (iv) could not be avoided, by the Party who suffers it,by the exercise of commercially reasonable efforts;provided,however,that"Force Majeure" shall not be construed in any way as abrogating or limiting the City's police power or the City Council's legislative power or authority. "Force Majeure" shall include,but is not limited to: (a) natural phenomena, such as storms, floods, lightning and earthquakes, and inclement construction weather (except as provided below); (b) wars, civil disturbances, revolts, insurrections,terrorism, sabotage and threats of sabotage or terrorism; (c)transportation disasters, whether by ocean, rail, land or air; (d) strikes or other labor disputes that are not due to the breach of any labor agreement by the affected Party, shortages in labor or materials; (e) rapid or unsustainable population growth, or mass displacement or relocation of persons, as determined in writing by the City in its sole discretion; (f) fires, epidemics, or pandemics; (g) changes in market or financing conditions that would make it commercially infeasible to proceed with a particular stage of project at a particular time as approved in writing by the City in its sole discretion; (h) actions or omissions of a governmental authority including, but not limited to permitting delays (but not including the actions of the City in its capacity as a governmental authority)that were not voluntarily induced or promoted by the affected Party, or brought about by the breach of its obligations under this Agreement or failure to comply with any Applicable Law; and (i) circumstances similar to those listed above as mutually agreed in writing by both Parties;provided, however, that under no circumstances shall Force Majeure include any inclement construction weather days anticipated as part of normal seasonal weather patterns for the region, or any strike or labor dispute involving the employees of the Developer or any Affiliate of the Developer, other than industry or nationwide strikes or labor disputes, or any governmental action by the City affecting the Developer. "FTE"means any employee working at the Project on a thirty (30) hour or more per week schedule, or a combination of two (2) or more employees on part time schedules that equal forty (40)hours. For the avoidance of doubt, "FTE"includes all contract labor. "General Fund Sales Tax Revenues" means the amount of the unrestricted 1% municipal sales and use tax revenues attributable to the Property and collected by the Texas Comptroller of Public Accounts from the sales of goods and services resulting in tax revenues remitted to and Page 5 of 64 City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement actually received by the City. For purposes of this Agreement, General Fund Sales Tax Revenues shall only apply to new business and sales and use tax revenue sourced to and generated from the Development, but shall not apply to any existing businesses relocating to the Development from another location in the City. "Governmental Authority" means any federal, state, or local governmental entity (including any taxing authority and the City) or agency, court, tribunal, or any City board, commission, political subdivision, or other body, whether legislative,judicial, or executive (or a combination or permutation thereof). "Impact Fees" means all utility and roadway impact fees, if any, relating to capital improvements that may be assessed and collected by the City on the Property in accordance with Chapter 395, Texas Local Government Code, as amended, and all utility impact fees, if any, relating to the Public Improvements in each case assessed, imposed and collected by the City on the Property in accordance with City Regulations. "Impositions" shall mean all taxes, Assessments, use and occupancy taxes, hotel occupancy tax, sales taxes, charges, excises, license and permit fees, and other charges by any Governmental Authority, which are or may be assessed, charged, levied, or imposed by any Governmental Authority on Developer, or any property or any business owned by the Developer within the City's municipal boundaries. "Maximum Incentive Amount"means the maximum not-to-exceed amount of$18,850,000 to be reimbursed to the Developer by the City from City Tax Increment for full Development of the Property(less the amount of any Chapter 380 Incentive Grants paid to the Developer and any amount reimbursed to the Developer from Tarrant County Tax Increment). Notwithstanding the Maximum Incentive Amount described above, the City shall not be obligated to make any further reimbursement to the Developer after the Developer has received eighteen (18) annual reimbursement payments from the TIRZ as more specifically set forth in Section 5.01 of this Agreement. PID Assessments or the proceeds of PID Bonds shall not be included in the Maximum Incentive Amount. "PID" or "PIDs" means, unless the context clearly indicates otherwise, no more than two (2) public improvement districts created pursuant to the PID Act after petition to the City by the Developer. The boundaries of one PID may incorporate the commercial portion of the Development, and the boundaries of the second PID may incorporate the residential portion of the Development. "PID Act"means Chapter 372 of the Texas Local Government Code. "PID Assessment Ordinance" means one or more of the City's ordinances levying Assessments on the benefitted properties within a PID. "PID Bonds" means one or more series special assessment revenue bonds, that may be considered by the City upon request by the Developer, in the City's sole and absolute discretion, pursuant to the PID Act for the funding of the Public Improvement Project Costs,as defined below. Page 6 of 64 City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement "Plans and Specifications" means the plans and specifications for Public Improvements approved by the City in writing, together with any changes thereto approved or required by the City, as determined by the City Engineer. "Public Improvement Project Costs" means the cost of the Public Improvements to be constructed to benefit all or a portion of the TIRZ, the PID(s), and the Property within, adjacent to,or serving the Development as set forth in Exhibit D,the SAP,or the TIRZ Project and Finance Plan(inclusive of hard and soft costs and interest carried by Developer and financing costs), such costs to be related to eligible projects as authorized in the PID Act or the TIRZ Act, as applicable. Exhibit D is an estimate only and shall not serve to limit the nature or amount of Public Improvement Project Costs that may be eligible for funding or reimbursement under this Agreement. "Public Improvements" means public improvements to be developed and constructed or caused to be developed or constructed inside and adjacent to the Development by the Developer to benefit the Property, which includes, but is not limited to, internal and external public streets, alleys, courts, roundabout(s), sanitary sewer mains and appurtenances, storm drainage facilities, sidewalks, water mains and appurtenances, trails, water features, parks, and recreation facilities, and other public facilities and amenities associated with full development of the Property as determined by the Plans and Specifications and the Approved Plans. "Separated Contract"means a written contract between the Developer and its Contractor(s) as defined by 34 Texas Administrative Code, Section 3.291, for construction of the Project. "Service and Assessment Plan" or "SAP" means the service and assessment plans drafted by the City or its consultants pursuant to the PID Act for the PIDs and any amendments or updates thereto,that are finally adopted and approved by the City that: (i) defines the annual indebtedness, if any, and projected costs for Public Improvements to be paid by the PID; (ii) includes a copy of the notice form required by Section 5.014, Property Code; and (iii) identifies and allocates the Assessments on benefitted parcels within the PID and sets forth the method of Assessment, the parcels assessed,the amount of the Assessments,the eligible Public Improvements and the method of collection of the Assessment. "Site Plan"means the final site plan for the Development approved by the City Council in accordance with the Zoning. "Tarrant County Tax Increment" means, for any given year identified in an agreement between the City and Tarrant County, if such an agreement should be executed by both the City and Tarrant County, the portion identified in such agreement, of the Tarrant County ad valorem property taxes levied and collected by Tarrant County for that year on the captured appraised value of real property taxable by Tarrant County and located within the Property in the TIRZ to be contributed to the TIRZ Fund. "Tax Year" shall have the meaning assigned to such term in Section 1.04 of the Texas Tax Code (i.e., the calendar year). Page 7 of 64 City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement "TIRZ Fund"means the tax increment fund set up by the City in order to receive the TIRZ Revenues from the Zone in accordance with the TIRZ Act,and the TIRZ Project and Finance Plan. "TIRZ Project and Finance Plan" means the final project plan and finance plan for the TIRZ approved by City ordinance as required by the TIRZ Act, as amended. "TIRZ Reimbursement Agreement" means the agreement between the City and the Developer in which the Developer agrees to fund certain costs of Public Improvements, and the City agrees to reimburse the Developer for such costs from TIRZ Revenues attributable to the Property and the Development and to further incentivize the Project in compliance with the TIRZ Project and Finance Plan. "TIRZ Revenues" means the City Tax Increment, the General Fund Sales Tax Revenues to the extent they will be included in the Chapter 380 Incentive Grants, and the Tarrant County Tax Increment, as applicable, deposited to the Trademark TIRZ Account (defined below). ARTICLE II TERM 2.01. Term. The term of this Agreement shall commence on the Effective Date and shall continue until the Parties have fully satisfied all terms and conditions of this Agreement, unless terminated upon the sooner of. (i)the expiration of the TIRZ,which is twenty-one(21)years after the date when the TIRZ becomes effective; or (ii) when total incentives reimbursed to the Developer by the City under this Agreement have reached the not-to-exceed Maximum Incentive Amount of $18,850,000, excluding any PID Assessments or proceeds of PID Bonds actually received by the Developer. Nothing in this Agreement shall be construed as requiring the City to pay any remaining portion of the Maximum Incentive Amount if this Agreement terminates first under(i) above. The termination of this Agreement shall not serve to dissolve the PID, terminate any Assessment Funding Agreement, or relieve the City of any payments obligation insofar as they pertain to the payment of PID Assessments to the Developer under an Assessment Funding Agreement. ARTICLE III DEVELOPMENT 3.01. General Scope of Agreement. This Agreement establishes, among other things, provisions for (i) the construction of the Public Improvements; (ii) the funding, acquisition, ownership and maintenance of the Public Improvements; (iii) funding of the costs of the Public Improvements from (a) the levy and collection of Assessments within the PIDs for the financing of the Public Improvements benefitting the properties within the PIDs and (b) funding of Public Improvement costs from the collection of TIRZ Revenues; (iii) Chapter 380 Incentive Grants; Page 8 of 64 City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement and(iv)Developer's duties and obligations to finance and construct the Public Improvements and the private improvements for full development of the Property. 3.02. Development Overview and Performance Obligations. (a) The Developer will undertake or cause the undertaking of the design, development, construction, maintenance, and management of the Development, in accordance with this Agreement, City Regulations, the Approved Plans, Zoning, and Applicable Law. (b) Subject to the terms and conditions set forth in this Agreement,the Developer shall plan,design, construct, and complete the Public Improvements in accordance with the City's Plans and Specifications and subject to the City's approval as provided herein and in accordance with City Regulations, Approved Plans, Zoning, and Applicable Law. (c) Upon completion and written acceptance by the City, the City shall own or have a perpetual public easement over and the obligation to maintain all of the Public Improvements, except as otherwise provided in this Agreement. (d) Minimum Taxable Value. Development of the Property must result in a"Minimum Taxable Value" of at least $80,000,000 for the 2031 Tax Year, and for every Tax Year thereafter during the Term of this Agreement, and for a period of at least twenty-one (21) years after the Developer achieves Completion of Construction of the Public Improvements and private improvements in the TIRZ boundaries, or as the Minimum Taxable Value is finally established in the TIRZ Project and Finance Plan. In the event the taxable value falls below the minimum amount stated in the preceding sentence for any Tax Year during the term of this Agreement, then the Developer shall have an opportunity to present to the City an independent third-party appraisal evidencing that the Property has reached the Minimum Taxable Value. However, in the event the Developer fails to produce such an appraisal, the Developer shall be subject to the default, notice, cure, and recapture provisions of this Agreement, and/or the City may amend the TIRZ Project and Finance Plan and any TIRZ Reimbursement Agreement, so any TIRZ reimbursement to the Developer shall be incrementally reduced or withheld in its entirety, as determined by the City in its sole discretion. (e) Capital Investment. The minimum Capital Investment for the Project shall be no less than One Hundred Twenty-Seven Million Nine Hundred Thousand and No/100 Dollars ($127,900,000) as of the date the full Development has achieved final buildout of horizontal and vertical private and Public Improvements. The Developer shall, on or after the time the City determines the full Development has achieved final buildout of horizontal and vertical private and Public Improvements, deliver to the City Manager, or her designee, copies of invoices, bills, receipts and such other information as may be reasonably requested by the City to document compliance with the required Capital Investment for the Development. (f) Required FTEs. The Developer intends to create at least 265 FTEs but in no event will create fewer than 200 FTEs by June 30, 2028, and retain said level of FTE's from and after such date until the expiration of the Term of this Agreement, provided, however, that the Page 9 of 64 City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement Developer's failure to meet its obligations under this sentence shall not be subject to the default, cure, or recapture provisions of this Agreement. (g) Payment in lieu of FTEs. The Parties acknowledge that the City's adopted Comprehensive Plan anticipates that developers will help retain and enhance the City's economic base, and that the required FTE levels are necessary in achieving such goals. Company will annually certify as of December 31st of each year commencing on June 30, 2028 (by providing exact total FTE numbers) and with each Payment Certificate (defined below) that any applicable FTE levels have been met. The Developer will meet its obligations in this Agreement as long as the required FTE levels were reached at any time during the calendar year prior to the annual certification date. If the FTE levels are not met in any given year or are insufficient as of the time of a Payment Certificate, the next payment or reimbursement due to the Developer from the City will be offset and reduced in an amount equal to $1,000 for each FTE not created or maintained in accordance with this Agreement. Any intentionally fraudulent or material misrepresentation of certified FTE numbers submitted to the City, or discovered upon audit or investigation by the City or State Comptroller, shall be an event of default subject to termination and repayment pursuant to this Agreement. (h) Annual Certification. In addition to the foregoing Subparagraph(g),on or before June 30th of each year following the Commencement of Construction, the Developer shall provide to the City written certification that the Developer is in compliance with each applicable term of this Agreement. Such certification may be submitted concurrently with a Payment Certification, as applicable,and shall be in a form reasonably satisfactory to the City,and shall include,at a minimum, information supporting the Developer's conclusions that it met (or expects to meet) each condition and requirement set forth in this Agreement. Any failure of the City to request or demand such certification shall not constitute a waiver of such certification or any future certification; provided, however, that if the City fails to request or demand such certification and the Developer fails to provide such certification, the City shall give the Developer written notice of such failure and the Developer shall provide such certification within thirty (30) days of the Developer's receipt of such notice. ARTICLE IV PUBLIC IMPROVEMENT DISTRICT 4.01. PID Creation. (a) The Developer intends to submit petition(s) to the City requesting the creation of no more than two (2) PIDs to initially fund certain Public Improvements, and the City intends to consider the creation of the PIDs in accordance with Applicable Law; however, the Parties agree that the PIDs shall not be created, or modified in any way, for purposes related to the ongoing maintenance and operations of the Public Improvements within the PID. (b) The Developer's request to create the PID must be made in full compliance with the PID Act and shall include a detailed list of all Public Improvements and the estimated or actual costs of such Public Improvements, as consistent with this Agreement. Among other things, such petition(s) shall also include the Developer's plan for the levying Assessments, the method of financing for the Public Improvements, and the costs to the City for administration of the PID. Page 10 of 64 City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement After receipt of such petition(s),the City shall hold a public hearing to consider the creation of the PIDs in accordance with the PID Act. The Developer shall enter into a professional services agreement that obligates the Developer to pre-fund all costs of the City's external professionals relating to the establishment of the PID. 4.02. Lew of Assessment for Public Improvement Project Costs. Assessments may be levied on property located within the PIDs in accordance with this Agreement and the PID Act, the SAP, and the PID Assessment Ordinance for the limited purposes of securing bonds for the funding of Public Improvements and/or reimbursing the Developer annually from Assessments for the construction costs of the Public Improvements pursuant to an Assessment Funding Agreement (inclusive of hard and soft costs and interest carried by Developer). 4.03. Transfer of Property. Notwithstanding anything to the contrary contained herein, no sale of property within the PID on which Assessments are to be levied pursuant to an Assessment Funding Agreement, shall occur prior to the City's levy of Assessments unless the Developer provides the City with an executed consent to the creation of the PID and the levy of Assessments, in a form acceptable to the City. Prior to the creation of the PID, Developer shall provide all necessary documentation to the City with respect to any land transfers. 4.04. The Developer may seek the issuance of PID bonds, in one or more series, to fund or reimburse Public Improvement Project Costs in accordance with the PID Act and as necessary to make progress payments to Developer, unless Developer requests reimbursement of Public Improvement Project Costs from annual PID proceeds. If requested,the issuance of PID bonds is a discretionary governmental action subject to the City Council's approval. The issuance of PID bonds is also subject to market conditions at the time of issuance and shall be issued with the terms deemed appropriate by the City at the time of issuance, if at all. The issuance of PID bonds is an action that may be taken by a future City Council, in its sole discretion, and such future City Council shall not be bound by the terms of this Agreement with respect to the issuance of PID bonds. If PID bonds are issued for the residential portion of the Development, the assessments shall average no more than$5,925 per single-family lot on an annual basis, averaged over the life of the levy, on the anticipated improvement values on the single-family lots, determined at the time of assessment levy, over a thirty (30) year period for the funding of PID area Public Improvement costs listed as Exhibit D, as authorized by the PID Act and in conformance with the petition for the creation of the PID. ARTICLE V TIRZ 5.01. Tax Increment Reinvestment Zone ("TIRZ"). (a) The City intends to consider an ordinance consistent with the terms of this Agreement and in compliance with the TIRZ Act to create a TIRZ on the commercial portion of the Property,to become effective after all legal requirements for creation of the TIRZ are satisfied as required by the TIRZ Act. The City anticipates creation of the TIRZ no later than December 31, 2026, ensuring a 2026 base year (the "Base Year") and allowing for the TIRZ schedule set forth in (c) below. In accordance with the TIRZ Project and Finance Plan to be adopted for the Page 11 of 64 City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement Zone, the Parties will enter into a TIRZ Reimbursement Agreement pursuant to the TIRZ Act for the purposes of reimbursing developer for the costs of the Public Infrastructure and providing additional Chapter 380 Incentive Grants to draw businesses, boost development, grow property values and long-term property tax collections, and lessen the cost of private development and project costs in the TIRZ. The TIRZ shall terminate upon the expiration of twenty-one (21)years after the date when the TIRZ becomes effective;however,the annual reimbursement payments for the City Tax Increment shall not (1) exceed eighteen (18) consecutive years as set forth in subsection (c) below; (2) shall not continue after the expiration of the term of the TIRZ; and (3) shall not exceed the Maximum Incentive Amount of$18,850,000 (including all TIRZ Revenues paid to the Developer, any Chapter 380 Incentive Grants paid to the Developer, and any amount reimbursed to the Developer from Tarrant County Tax Increment). The TIRZ board of directors shall be given all of the powers of the City under Texas Local Gov't Code Ch. 380, to authorize economic development grant incentives subject to City Council approval. (b) The Parties will endeavor to adopt a TIRZ Project and Finance Plan that allocates 95% of City Tax Increment for whichever comes first: i) a period of twenty one (21) years from when the TIRZ is created, ii) until the TIRZ has reimbursed the Developer the not-to-exceed Maximum Incentive Amount of$18,850,000(less the amount of any Chapter 380 Incentive Grants paid to the Developer and any amount reimbursed to the Developer from Tarrant County Tax Increment), or iii)until the Developer has received eighteen(18) annual reimbursement payments from the TIRZ. (c) In order to account for a maximum of eighteen (18) consecutive reimbursement payments under the TIRZ, the TIRZ Project and Finance Plan shall provide for the following: (i) A Base Year of 2026, with the calculation of City Tax Increment and County Tax Increment and the collection of all TIRZ Revenues to begin in the succeeding year; (ii) The first distribution of TIRZ Revenues from the TIRZ Fund to the Developer, to include all funds accrued since the Base Year, to be made during calendar year 2030; (iii) The final distribution of TIRZ Revenues from the TIRZ Fund to the Developer to be made, at the latest and subject to the Maximum Incentive Amount, during calendar year 2047, with the exception of TIRZ Revenues collected via sales tax generated from construction items and materials under Section 6.01(1)of this Agreement,which shall continue only as set forth in said section. (d) Upon approval of the TIRZ,the City shall create an account(the"Trademark TIRZ Account")within the TIRZ Fund in order to identify and allocate the TIRZ Revenue, including the City Tax Increment and Tarrant County Tax Increment, if any, attributable to the Development within the TIRZ as well as the General Fund Sales Tax Revenues. The TIRZ Revenue in the Trademark TIRZ Account will be dedicated and used solely for the purpose of paying Public Improvement Project Costs listed on Exhibit D associated with the Development and included in the TIRZ Project and Finance Plan, as well as for the Chapter 380 Incentive Grants to draw Page 12 of 64 City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement businesses, boost development, grow property values and long-term property tax collections, and lessen the cost of private development and Project Costs in the TIRZ. (e) Notwithstanding any other provision in this Agreement,the City shall not make any annual TIRZ reimbursement payments to the Developer until the Developer meets the Commencement of Construction and Completion of Construction deadlines in this Agreement. 5.02. Flow of Tax Increment. (a) The Parties intend that the TIRZ Revenues collected within the TIRZ and deposited in the Trademark TIRZ Account shall be expended in the following order: (i) First, to pay the City's administrative costs relating to the TIRZ, including any reasonable third-party administrative costs; and (ii) Second, to fund the Project Costs listed in the Project and Finance Plan, through a TIRZ Reimbursement Agreement, including the Public Improvement Costs, including but not limited to the cost for upsizing the proposed 12" waterline along W. Kirkwood Blvd., and SH114 Frontage Road; and to fund other costs including but not limited to, funding any lawful purpose in the TIRZ, including payment of Chapter 380 Incentive Grants from the TIRZ Revenues. 5.03. In the event the City determines City Tax Increment should be used to fund the cost of repair or replacement of the Public Improvements,the City may amend the Project and Finance Plan and adjust the flow of tax increment outlined above at the City's sole discretion. The City shall endeavor to use its reasonable efforts to secure the participation of Tarrant County, Texas, in the TIRZ with participation levels and for a duration equal to the City. Failure to secure such participation by Tarrant County shall not constitute a breach of this Agreement. Any amount reimbursed to the Developer from Chapter 380 Grant Incentives and Tarrant County Tax Increment, which are included as TIRZ Revenues, shall proportionately reduce the City's TIRZ reimbursement obligations under this Agreement and will be applied to the not-to-exceed Maximum Incentive Amount of$18,850,000. ARTICLE VI CHAPTER 380 PROGRAM INCENTIVES 6.01. Sales Tax Revenues — Sourcing. In exchange for Developer's Capital Investment, the Development, and Developer's completion and compliance with the conditions and requirements of this Agreement, the City shall make the following "Chapter 380 Incentive Grants" to the Developer as part of the TIRZ Revenues to be deposited in the TIRZ Fund and used as set forth in Section 5.02 of this Agreement: (1) To the extent Developer purchases major construction items directly related to the Development so that the General Fund Sales Tax Revenue will be sourced to the Property and collected by the City as permitted by State law, then the City shall reimburse to the Developer an amount equal to fifty percent(50%)of the General Fund Sales Tax Revenues attributable to materials that are consumed on the Property or physically incorporated into Page 13 of 64 City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement the Property as part of the Development under Separated Contract(s) via deposit into the TIRZ Fund and distribution to the Developer as set forth in the TIRZ Project and Finance Plan. The Developer shall be eligible to receive the Chapter 380 Incentive Grant in this Section 6.01(1) for a two (2) year period from the date a Certificate of Occupancy is first issued by the City. (2) After the first Certificate of Occupancy is issued for the commercial portion of the Development and the first tenant occupies and operates space in the commercial portion of the Development, the Developer shall be eligible for a grant reimbursement in an amount equal to ninety-five (95%) of the General Fund Sales Tax Revenue generated from the commercial development on the Property, collected by the City as permitted by State law, and deposited into the TIRZ Fund and distributed to the Developer as set forth in the TIRZ Project and Finance Plan.. The Developer shall be eligible to receive the Chapter 380 Incentive Grant in this Section 6.01(2) for an eighteen (18) year period as set forth in Section 5.01(c) of this Agreement and payment shall be made concurrently with the eighteen(18) annual reimbursement payments from the TIRZ. (3) Any amount reimbursed to the Developer from Chapter 380 Grant Incentives and Tarrant County Tax Increment,which are TIRZ Revenues, shall proportionately reduce the City's TIRZ reimbursement obligations under this Agreement and will be applied to the not-to-exceed Maximum Incentive Amount of$18,850,000. 6.02. To receive payments for the Chapter 380 Incentive Grants above, the Developer must submit proof of sales and use taxes paid on construction materials and sourced to the Property,or proof of sales and use tax remitted to the State of Texas and related to the commercial portion of the Development, to the City within the time periods provided in this Article 6. 6.03. To receive payment, the Developer shall also submit a written request to the City detailing the following information: i. A copy of all sales and use tax returns and supporting work papers, including but not limited to, amended reports filed by the Developer or its Contractors, showing sales and use tax remitted to the State of Texas attributable to materials that are physically incorporated into the Property as part of the Development under Separated Contract(s), or sales and use tax remitted to the State of Texas related to the commercial portion of the Development; and ii. Any and all information concerning any sales and use tax revenue adjustments resulting from refunds filed or received by the Developer, or its Contractors, or tenants of sales or use tax remitted to the State of Texas, if any,which had previously been reported as subject to this Agreement; and iii. Any and all information concerning any sales and use tax revenue adjustments made pursuant to sales and use tax audits by the Texas State Comptroller's Office of the Developer, or its Contractors, or tenants involving amounts reported as subject to this Agreement. Page 14 of 64 City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement 6.04. Within thirty (30) days after receipt of(i) the written payment request required by Section 6.03; and (ii) receipt of the General Fund Sales Tax Revenue related to the Chapter 380 Incentive Grant under Section 6.01(l), the City shall make a payment to the Developer from currently available funds. As it relates to the Chapter 380 Incentive Grants under Section 6.01(2) the Developer shall submit a written payment request no later than thirty (30) days prior to the annual TIRZ reimbursement, and upon receipt of the General Fund Sales Tax Revenue related to Section 6.01(2), the City shall make a payment to the Developer from currently available funds concurrently with the annual reimbursement payments from the TIRZ. Notwithstanding any other provision in this Agreement,if the City receives an audit adjustment from the State of Texas related to a business within the Development, the City may either allocate and apply any overpayment of Chapter 380 Incentive Grants to future reimbursement requests, or send written demand to the Developer requiring payment of the same,which shall be made by the Developer within thirty(30) days of written demand by the City. 6.05. This Agreement shall be interpreted in harmony with 34 Texas Administrative Code, Section 3.291, and the Chapter 380 Incentive Grants offered in this Agreement are contingent upon any change in Texas law, or any change in rules or regulations by governmental authorities resulting in the Property, or the Development, no longer being defined as the location of the job site, the location where the order for materials is placed, or the location where sales are made. ARTICLE VII DEVELOPMENT STANDARDS 7.01. Full Compliance with City Regulations. The development and use of the Property by the Developer and its Affiliates, including, without limitation, the construction, installation, maintenance,repair, and replacement of all buildings and all other improvements and facilities of any kind whatsoever on and within the Property, shall be in compliance with all City Regulations. 7.02. Regulations Regarding Building Products, Materials, or Methods. The Parties find that the Property constitutes an area of architectural importance and significance solely for the purpose of allowing the City to regulate certain building products, materials, and methods, and the City Council hereby designates it as an area of architectural importance and significance for purposes of Chapter 3000 of the Texas Gov't Code (the "Code"), solely for allowing the City to regulate certain building materials, products, and methods as set forth in §3000.002(d) of the Code. In consideration for the mutual covenants and conditions contained herein and pursuant to §3000.002(d) of the Code, Developer voluntarily agrees to the application of City Regulations concerning building products,materials, or methods existing as of the Effective Date that govern the use or installation of a building product or material in the construction, renovation, maintenance, or other alteration of a residential or commercial building on the Property, regardless of whether a different building product or material is approved for use by a national model code published within the last three code cycles that applies to the construction,renovation, maintenance, or other alteration of a building. In addition, Developer voluntarily consents to the application of the City Regulations that establish a standard for a building product, material, or aesthetic method in construction, renovation, maintenance, or other alteration of a residential or commercial building, regardless of whether the standard is more stringent than a standard for the Page 15 of 64 City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement product,material, or aesthetic method under a national model code published within the last three code cycles that applies to the construction, renovation, maintenance, or other alteration of a building. The parties agree that: (a) the City will not issue any permits for the Development in violation of this section; (b)the covenants contained within this section constitute a material term of this Agreement; (c) Developer's voluntary consent to the application of the City Regulations to the Property, as described in this section, constitutes a material inducement for the City to authorize the payment of the Chapter 380 Incentive Grants to Developer described herein; (d)the covenants contained herein shall run with the land and shall bind Developer and all successors and assigns; and(e) this section shall survive termination or expiration of this Agreement. 7.03. The Development must be constructed using materials in compliance with the Approved Plans, City Ordinance No. 480-837, and building code regulations found in Section 4.5 of the Southlake City Code, as set out within the plans for construction and Plans and Specifications to be approved by the City, and adhering to development standards as approved in City Ordinance No. 480-837, and the Development shall be designed to incorporate natural features such as topography of the Property. 7.04. Use of City Property. The City agrees to allow the Developer the use of any City easements, rights of way or City owned property as is reasonably necessary for the construction and installation of the Public Improvements. 7.05. Zoningof Property. The Developer has applied for and obtained Zoning for the Property in accordance with Zoning Case No.ZA25-0045,as finally approved by the City Council of the City by Ordinance 480-837, and the Parties agree that such Zoning is consistent with this Agreement and is included within the City Regulations, which are vesting documents in accordance with Chapter 245 of the Texas Local Government Code. ARTICLE VIII DEVELOPMENT FEES AND CHARGES 8.01. Plat Review Fees. Development of the Property shall be subject to payment to the City of the fees and charges, if any, applicable to the City's preliminary and final plat review and approval process according to the fee schedule adopted by the City Council and in effect at the time of platting. 8.02. Plan Review and Permit Fees. Development of the Property shall be subject to payment to the City of the fees and charges, if any, applicable to the City's review of plans and specifications and issuance of permits (including building permits) for construction of the Public Improvements and any other improvements requiring City review, according to the fee schedule adopted by the City Council at the time of plan review and permit issuance. 8.03. Inspection Fees. Development of the Property shall be subject to the payment to the City of inspection fees, if any, according to the fee schedule adopted by the City Council at the time of inspection. 8.04. Selection of Building Inspection Firm. In the event the City is unable to routinely Page 16 of 64 City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement complete building inspection within thirty (30) days of a request by a general contractor for a building,the City and the Developer shall implement a program of third-party inspections. Such building inspections for development within the Property may be conducted by a third-party(the "Building Inspection Firm") at the sole cost of the Developer. The Developer shall present to the City three(3)candidate firms for consideration. Such candidate firms shall be in compliance with all Applicable Law and shall not have previously been involved in litigation against the City. In addition,none of such firms shall have previously conducted work for the City for which the City was unsatisfied. The City shall select the Building Inspection Firm from these candidates and shall notify the Developer of its selection within thirty (30) days of receiving the candidate list if the City does not interview any of the firms. If the City elects to interview any of the firms, the City shall have sixty (60) days to select a Building Inspection Firm. No building inspection fees shall be charged by the City for an inspection performed by a Building Inspection Firm. 8.05. Park Fees. Development of the Property shall be subject to the payment to the City of all park fees, if any, according to the fee schedule adopted by the City Council. Park fees are based upon the City of Southlake 2021 Municipal Fee Schedule which specifies a fee in lieu of park land dedication equaling $8,700.00 per gross acre for non-residential construction and $6,500 per lot for residential construction. The total area of the commercial and infrastructure portion of the Development is 25.935-acre. Therefore, the park fee owed for the commercial and infrastructure portion of the 40.209-acre Development is $225,631.26. There are a total of 37 lots within the residential portion of this Development. Therefore, the park fee owed for the residential portion of the 40.209 acre development is $240,500.00. 8.06. Impact Fees. Development of the Property shall be subject to the payment to the City of Impact Fees, if any, according to the fee schedule adopted by the City Council at the time of inspection. 8.07. Rough_ Proportionality. The Parties agree that subject to the creation of the TIRZ and remittance of TIRZ revenues by the City, all conveyances, dedications, construction costs and other payments, if any,made by the Developer related to the Project are roughly proportional to the need for such improvements created by the development of the Property and Developer hereby waives any claim therefore that it may have. The Developer further acknowledges and agrees that subject to the creation of the TIRZ and remittance of TIRZ revenues by the City, all prerequisites to such a determination of rough proportionality have been met, and that any costs incurred relative to the conveyance,dedication,construction costs and other payments, if any, for the Development and any Public Improvements are related both in nature and extent to the impact of the Project. The Developer waives and releases all claims against the City related to any and all rough proportionality and individual determination requirements mandated by Section 212.904, Texas Local Government Code, or the Texas or U.S. constitutions, as well as other requirements of a nexus between development conditions and the projected impact of the Development, or the Property. ARTICLE IX DEVELOPMENT SPECIFIC REQUIREMENTS 9.01. Utility Capacity. The Developer will construct the necessary and required utility Page 17 of 64 City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement infrastructure to serve the Property as set forth in Exhibits E, F, G, and H to this Agreement in accordance with the Approved Plans for the Development. Thereafter,the City will provide water and wastewater capacity sufficient to meet the ultimate demands of the Development. The City agrees to provide written confirmation of the availability of such capacity reserved in the City system from time to time as requested by the Developer. Water and wastewater services will be provided to the Developer at the City's published billable rates. 9.02. Kirkwood Boulevard: The Developer will fully construct Kirkwood Boulevard on the Property as shown in Exhibit E to its full capacity in accordance with the Plans and Specifications, including sidewalks, hardscapes, landscaping, and the intersection signal at N. White Chapel Boulevard as identified in City's Mobility Master Plan and as presented to the City in the Approved Plans. The Kirkwood Boulevard improvements must be fully constructed by the Developer and accepted in writing by the City prior to the issuance of a Certificate of Occupancy for any building within the Development; however, should any portion of the improvements related to Kirkwood Boulevard remain unfinished by the deadline for Completion of Construction due to the timing of any easements or rights of way necessary for the completion of the Kirkwood Boulevard improvements, the provisions regarding termination in Section 14.02 of this Agreement and default in Section 15.01 of this Agreement shall not apply. 9.03. Propertcquisition. The Developer shall be responsible for the acquisition of any rights-of-way, easements, property rights, or interests in land to allow construction of the Public Improvements for the Development. If necessary for construction of any of the Public Improvements, Developer shall provide any rights-of-way, property rights, or interests in land within the parcels owned by the Developer necessary to develop the Public Improvements at no cost to the City. It is not anticipated that any offsite easements or rights of way are required for the development of the Property. However, in the event offsite easements or rights of way are required for the Development, the Developer agrees to use commercially reasonable efforts to obtain all third-party rights of way, consents, or easements required for the Public Improvements, at its sole cost and expense. If,however, the Developer is unable to obtain such third-party rights of way, consents, or easements within ninety (90) days of the Effective Date, the City agrees to take reasonable steps to secure same (subject to City Council authorization after a finding of public necessity)through the use of the City's power of eminent domain. The Developer shall be responsible for funding all reasonable and necessary costs, expenses, legal proceeding/litigation costs, attorney's fees and related expenses, and appraiser and expert witness fees (collectively, "Eminent Domain Fees") paid or incurred by the City in the exercise of its eminent domain powers and shall, if requested in writing by the City, escrow with a mutually agreed upon escrow agent the City's reasonably estimated Eminent Domain Fees both in advance of the initiations of each eminent domain proceeding and as funds are needed by the City. Provided that the escrow fund remains appropriately funded in accordance with this Agreement, the City will use all reasonable efforts to expedite such condemnation procedures so that the Public Improvements can be constructed as soon as reasonably practicable. If the City's Eminent Domain Fees exceed the amount of funds escrowed in accordance with this paragraph, the Developer shall deposit additional funds as requested by the City into the escrow account within ten(10)days after written Notice from the City. Any unused escrow funds will be refunded to the Developer within thirty (30)days after any condemnation award or settlement becomes final and non-appealable.Nothing in this subsection is intended to constitute a delegation of the police powers or governmental Page 18 of 64 City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement authority of the City, and the City reserves the right, at all times, to control its proceedings in eminent domain. 9.04. Parks,Recreation, and Open Space. The public open space,trails, and other public recreational spaces and amenities approved in the Zoning and required in the Approved Plans shall be dedicated or conveyed to the City, and shall be improved, programmed and maintained by the Developer, or its Affiliates, successors or assigns, at their sole cost and expense. A perpetual public access,use, and recreation easement will be dedicated to the City and the general public to use and enjoy the open spaces that are identified as Developer owned and shall be publicly accessible. The maintenance of any landscaping within adjacent rights-of-way and the round-a-bout shall be maintained by the Developer at no cost to the City. Kirkwood Boulevard medians and the areas adjacent to SH 114 frontage shall be maintained by the Developer, or its Affiliates, successors, or assigns to the same standard required by the City for surrounding commercial properties. 9.05. Property Association Documents. The Developer intends to create a property owners association or associations for the Development. The Parties intend that prior to the City's issuance of a Certificate of Occupancy for the Property, the Developer will provide the City with a copy of the property owners association's master declaration of covenants, conditions, and restrictions. 9.06. Development Plan. The development of the Property by the Developer shall be made in accordance with the Approved Plans, which includes, but is not limited to the final Development Plan approved by the City Council in accordance with the Zoning. 9.07. Commencement of Construction Date. Commencement of Construction of the Development shall occur prior to six (6) months after the latter of the Effective Date of this Agreement, or January 1", 2027. 9.08. Completion of Construction Dates. (a) Completion of Construction of all Public Improvements, and any private infrastructure and improvements, for full construction of the commercial portion of the Development that will be located within the TIRZ boundaries shall occur no later than December 31 st, 2028. (b) Completion of Construction of all Public Improvements,and any horizontal private infrastructure and improvements (e.g., franchise utilities), for full construction of the single- family residential portion of the Development shall occur no later than June 30th, 2029. 9.09. Extension of Commencement of Construction Date. If the Developer determines that any Commencement of Construction date or Completion of Construction date in this Agreement shall not be timely met, the Developer must provide written notice to the City Manager, or her designee, stating the reasons for the delay and request a new Commencement of Page 19 of 64 City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement Construction date or Completion of Construction date, which shall be subject to City Council approval. 9.10. Streets. The Developer will be responsible for the following: (a) Installation and two-year operational cost of streetlights, which is payable to the City prior to final acceptance of the Development; or an executed agreement with a utility provider stating that no charge will be made for streetlights for the two-year duration. The executed agreement must be presented to the City prior to final acceptance of the streets; (b) Installation of all street signs based on the Manual on Uniform Traffic Control Devices (MUTCD) as prepared by the Developer's engineer designating the names of the streets inside the Development, said signs to be of a type, size, color and design standard generally employed by the Developer and approved by the City in accordance with City ordinances; (c) Installation of all regulatory signs based on the MUTCD as prepared by the Developer's engineer by an engineering study or direction by the Director of Public Works. It is understood that Developer may install signage having unique architectural features, however, should the signs be moved or destroyed by any means,the City is only responsible for replacement of standard signage and poles. Developer or property owner will be responsible for any additional cost for replacement of custom or unique signs; and (d) All street construction will be subject to inspection and acceptance by the City. No work will begin on any street in said Development prior to complying with the requirements contained elsewhere in this Agreement. All streets, water, sewer, drainage, and any other public infrastructure improvements which are anticipated to be installed within the street or within the street right of way will be completed prior to the commencement of street construction on the specific section of street in which the utility improvements have been placed or for which they are programmed. (e) The Developer hereby agrees to advise the Director of Public Works as soon as possible when any physical modifications to the alignment of public infrastructure is required after construction has been completed. The Developer agrees to cooperatively work with and assist in the coordination of such modifications in a manner that will be least disruptive to street construction and/or the integrity of surrounding public infrastructure. 9.11 On-Site Water Facilities. The Developer hereby agrees to install the water facilities shown on Exhibit F to serve all lots shown on the final plat of the Development in accordance with Plans and Specifications to be prepared by the Developer's engineer and released by the City for construction and in accordance with Ordinance No. 170, as amended, and Applicable Law. In the event of any conflict between the alignment or size in approved Plans and Specifications or as- built infrastructure accepted by the City and Exhibit F,the approved Plans and Specifications and accepted infrastructure shall rule without the need to amend this Agreement. The Developer shall be responsible for all construction costs,materials and engineering. In the event that certain public water lines are to be oversized to comply with the City's Water Master Plan, the City will reimburse the Developer for the oversize cost greater than the cost of an 8"line in accordance with the TIRZ Project and Finance Plan or the SAP, as applicable. Page 20 of 64 City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement 9.12 On-Site Sanitary Sewer Facilities. The Developer hereby agrees to install sanitary sewage collection facilities shown on Exhibit G to service lots as shown on the final plat of the Development. Sanitary sewer facilities will be installed in accordance with the Plans and Specifications to be prepared by the Developer's engineer and released by the City for construction. Further, the Developer agrees to complete this installation in accordance with Ordinance No. 440, as amended, and Applicable Law. In the event of any conflict between the alignment or size in approved Plans and Specifications or as-built infrastructure accepted by the City and Exhibit G, the approved Plans and Specifications and accepted infrastructure shall rule without the need to amend this Agreement. The Developer shall be responsible for all construction costs, materials, engineering, permits and impact fees. In the event that certain public sanitary sewer lines are to be oversized to comply with the City's Wastewater Master Plan, the City will reimburse the Developer for the oversize cost greater than the cost of an 8-inch line in accordance with the TIRZ Project and Finance Plan or the SAP, as applicable. 9.13 Drainage. The Developer hereby agrees to install drainage facilities to service all lots as shown on the final plat of the Development in accordance with the Plans and Specifications to be prepared by Developer's engineer and released by the City for construction. The Developer also agrees to adhere to Ordinance No. 605,as amended, and Applicable Law. The Developer hereby agrees to fully comply with all EPA, TCEQ and FEMA requirements relating to the planning,permitting and management of storm water which may be in force at the time that development proposals are being presented for approval to the City. The Developer hereby agrees to comply with all applicable provisions of the Texas Water Code, and Applicable Law. 9.14 Underground Detention Facilities. The Developer agrees to provide a maintenance agreement to the City for any underground detention facilities proposed with the Development. The Developer or property owner of record shall be responsible for the operation and maintenance of all underground detention facilities in accordance with said maintenance agreement, and Applicable Law. The Parties acknowledge that no underground detention facilities are currently planned within the Development. 9.15 Erosion Control. The Developer agrees to comply with Ordinance No. 946, as amended, regarding erosion and sediment control during construction of the Development. The Developer also agrees to comply with the Texas Commission on Environmental Quality TPDES General Permit No. TXR150000, and all other Applicable Law. (a) The Developer agrees to keep the streets and storm drain systems (MS4) free from soil build-up by using soil control measures, such as those included in the NCTCOG STANDARD SPECIFICATIONS FOR PUBLIC WORKS CONSTRUCTION, Division 1000 EROSION AND SEDIMENT CONTROL to prevent soil erosion. It will be the Developer's responsibility to present to the Director of Public Works a Storm Water Pollution Prevention Plan(SWPPP)and/or erosion control plan that will be implemented for the Development. When in the opinion of the Director of Public Works there is sufficient soil build-up on the streets or other drainage areas and notification has been given to the Developer, the Developer will have seventy-two (72) hours to clear the soil from the affected areas. If the Developer does not remove the soil from the affected areas within 72 hours, the City may remove the soil build-up either by contract or by City forces Page 21 of 64 City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement and place the soil within the Development at the Developer's expense. All expenses must be paid to the City prior to acceptance of the Development. In addition to the foregoing requirements, if the Developer's construction activities damage, harm, or otherwise adversely impact any off-site property, the Developer shall immediately remediate the same and return the property to the condition that existed before the Developer's construction activities caused the damage. The City may determine in its sole discretion that off-site damage caused by the Developer is a public nuisance, and the Developer shall not be entitled to any payment or reimbursement under this Agreement until such time as the nuisance is abated, which shall be accomplished in no less than ten(10) days from the date the City declares the existence of a public nuisance. In addition to the foregoing, City shall be released, saved, held harmless, defended, and indemnified by the Developer in the same manner provided by Section 16.06 "INDEMNIFICATION" of this Agreement. (b) Developer or its contractors must commence final stabilization of any disturbed areas immediately after completion of all soil disturbing activities. The TDPDES General Permit No. TXR150000 defines final stabilization as when all soil-disturbing activities at the site have been completed and a uniform (i.e., evenly distributed, without large bare areas) perennial vegetative cover with a density of at least 70% of the native background vegetative cover for the area has been ESTABLISHED on ALL unpaved areas and areas not covered by permanent structures, or equivalent permanent stabilization measures (such as the use of riprap, gabions, or geotextiles) have been employed. (c) Where construction activity on a portion of the site has temporarily ceased, and earth disturbing activities will be resumed within 21 days, temporary erosion control and stabilization measures are not required on that portion of the site, except as provided below. Erosion control and stabilization measures must be initiated as soon as practicable in semi-arid areas and areas experiencing droughts by the 14a'day after construction activity. (d) After final stabilization has been established on all disturbed areas of the Development and all permanent erosion control measures have been installed and working effectively, the Developer shall request final acceptance of the project to the Director of Public Works. Inspection of the site will be required to ensure that the erosion control plan has been properly installed and the permanent erosion control measures will prevent soil erosion from the newly created lots from washing into the street right-of-way, drainage-way or other private property. 9.16 Use of Public Right of Way. It is agreed by and between the City and Developer that the Developer may provide unique amenities within public right-of-way, such as landscaping, irrigation, lighting, patterned concrete, etc., for the enhancement of the Development. The Developer agrees to maintain these amenities until such responsibility is turned over to the Association,or the Developer's successors or assigns. THE DEVELOPER,ITS SUCCESSORS AND ASSIGNS, UNDERSTANDS THAT THE CITY SHALL NOT BE RESPONSIBLE FOR THE REPAIR, REPLACEMENT, OR MAINTENANCE OF THESE AMENITIES UNDER ANY CIRCUMSTANCES AND FURTHER AGREES TO INDEMNIFY, DEFEND, AND HOLD HARMLESS THE CITY FROM ANY AND ALL DAMAGES, LOSS OR LIABILITY OF ANY HIND WHATSOEVER BY REASON OF INJURY TO PROPERTY OR THIRD PERSONS OCCASIONED BY THE DEVELOPER'S USE OF Page 22 of 64 City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement THE PUBLIC RIGHT OF WAY WITH REGARD TO THESE IMPROVEMENTS AND THE DEVELOPER SHALL, AT HIS OWN COST AND EXPENSE, DEFEND AND PROTECT THE CITY AGAINST ALL SUCH CLAIMS AND DEMANDS. 9.17 Amenities. It is agreed by and between the City and Developer that the Development may incorporate a number of unique amenities and aesthetic improvements in common areas of the Development such as ponds, aesthetic lakes, unique landscaping, walls, patterned concrete, specialty signage and accessory facilities. The Developer shall be responsible for the construction and maintenance of all such aesthetic or specialty items such as walls, vegetation, signage, landscaping, street furniture, pond and lake improvements until such responsibility is turned over to the Association, or the Developer's successors or assigns. 9.18 Detention. This Development will route most of the drainage now toward the proposed detention basin located along the SH114 frontage road, as shown on Exhibit H. The rest of the drainage flow will be routed toward the east into the existing storm systems. The proposed onsite detention pond and all associated structures shall be owned and maintained by the Developer or Association, as applicable. 9.19 Downstream Critical Drainage Structure Fee. The Development is partially located within the stormwater drainage basin for Critical Drainage Structure #5 and requires a fee of $331.38 per developed acre. 37.46 acres of the 40.209 acre development will drain toward the Critical Drainage Structure#5. Therefore,the Developer will pay a Downstream Critical Structure Fee of$12,413.49 for the entire Development. 9.20 Off-Site Sanitary Sewer. The offsite sanitary sewer for this Development is being provided through the future residential phase of the Development within Lot 1, Block B (the southernmost residential portion of the Development)as shown on Exhibit G. Prior to acceptance by the City, the public sanitary sewer infrastructure shall be constructed in accordance with City Regulations, tested, and accepted in writing by the City and shall either be located within a dedicated public right-of-way or a dedicated sanitary sewer easement prior to final acceptance of the Development's commercial and public infrastructure permits. 9.21 Traffic Signal. The Developer is required to construct the traffic signal at the intersection of Kirkwood Boulevard and N. White Chapel Boulevard per recommendations in the traffic impact analysis. Subject to the terms set forth in Section 9.03 of this Agreement, the Developer shall acquire all necessary rights-of-way for the installation of the traffic signal, and installation of the traffic signal shall be completed prior to the issuance of any Certificates of Occupancy within the Development. 9.22 Construction Phasing. The Development, in its entirety, shall comply with the phasing plan that was approved with the Zoning, and in accordance with the Approved Plans. No Certificates of Occupancy for any commercial building will be issued prior to all Public Improvements necessary for said commercial building being completed by the Developer, inspected, and accepted in writing by the City, including the traffic signal for the intersection of N. White Chapel Blvd. and Kirkwood Blvd. This requirement does not include the Public Infrastructure required for the residential only phase of the Development, except for the portion of Kirkwood Blvd. that goes through the residential portion of the Development. Page 23 of 64 City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement ARTICLE X CONSTRUCTION OF PUBLIC IMPROVEMENTS 10.01. Designation of Construction Manager, Construction Engineers. (a) Prior to construction of any Public Improvements, Developer shall make, or cause to be made, application for any necessary permits and approvals required by City and any applicable Governmental Authority to be issued for the construction of the Public Improvements and shall obligate each general contractor, architect, and consultant who work on the Public Improvements to obtain all applicable permits, licenses or approvals as required by Applicable Law. The Developer shall require or cause the design, inspection and supervision of the construction of the Public Improvements to be undertaken in accordance with City Regulations. (b) The Developer shall design and construct or cause the design and construction of the Public Improvements as identified in Exhibit D. (c) Developer shall comply, or shall require its contractors to comply, with all local and state laws and regulations, including the City Regulations regarding the design and construction of the Public Improvements applicable to similar facilities constructed by City, including,but not limited to,the requirement for payment,performance and two-year maintenance bonds for the Public Improvements as set forth below. (d) After Completion of Construction of a Public Improvement or a phase of the Public Improvements, Developer shall provide City with a final cost summary of all Public Improvement Project Costs incurred and paid associated with the construction of that portion of the Public Improvements and provide proof that all amounts owing to general contractors have been paid in full evidenced by "all bills paid" affidavits and final unconditional lien releases executed by Developer or its general contractors with regard to that portion of the Public Improvements. (e) Developer shall provide, or cause its Contractor to provide,payment,performance, and two-year maintenance bonds in forms reasonably satisfactory to the City for the Public Improvements. The same requirement shall apply to Developer if Developer performs the role of general contractor.Any surety company through which a bond is written shall be a surety company duly authorized to do business in the State of Texas, provided that the City may reasonably reject any surety company regardless of such company's authorization to do business in Texas. Evidence of payment and performance bonds shall be delivered to the City prior to any work being performed on any Public Improvements, subject to all of the following requirements: i. The Developer will present to the City, in form acceptable to the City, either(1) a cash escrow,(2)Letter of Credit,or(3)performance bond and payment bond,guaranteeing and agreeing to pay an amount equal to 100% of the value of the construction cost of all Public Improvements to be constructed by the Developer,and providing for payment to the City of the total remaining amounts required for the completion of the public facilities if the Developer fails to complete the work in accordance with this Agreement. All bonds shall be issued by a bonding company licensed to do business in the State of Texas. The Page 24 of 64 City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement Letter of Credit must meet the Requirements for an Irrevocable Unconditional Letter of Credit in a form acceptable to the City. ii. Performance and payment bonds, Letter of Credit, or cash escrow from the Developer, or Contractor, may be accepted in lieu of Developer's obligations specified above, at the discretion of the City. iii. Any guarantee of payment instrument (Performance Bond, Letter of Credit, etc.) submitted by the Developer, or Contractor, on a form other than the one which has been previously approved by the City as "acceptable" shall be submitted to the City Attorney and the Developer shall not commence any work on the Development until such City Attorney has approved the instrument. iv. In addition to the foregoing, the Developer agrees to furnish to the City a 2-year maintenance bond, letter of credit, or cash escrow in an amount equal to 100% of the cost of construction of all Public Improvements upon Completion of Construction of each phase of the Development. The 2-year maintenance bond, letter of credit, or cash escrow will take effect on the date of final written acceptance by the City and shall secure all costs of maintenance of such Public Improvements for a period of two (2) years. The 2-year maintenance bond, letter of credit, or cash escrow will be supplied to the City by the contractors performing the work, and the City will be named as the beneficiary, or additional obligee, as applicable. (f) Unless otherwise approved in writing by the City, all Public Improvements shall be constructed in accordance with the Plans and Specifications and dedicated to the City in accordance with the City Regulations and Applicable Law. (g) Within forty-five (45) days of Completion of Construction, the Developer shall dedicate or convey by final plat or separate instrument,without cost to the City and in accordance with Applicable Law, all property rights (which may be an easement) necessary for the construction, operation, and maintenance of the road, water, drainage, and sewer Public Improvements. 10.02. Construction Agreements. (a) The Developer shall enter into contracts with general contractors and/or subcontractors for construction of the Public Improvements to be let in the name of the Developer (the "Construction Agreements"). The Developer's engineers shall prepare and provide, or cause the preparation and provision of all contract specifications and necessary related documents, and Developer shall provide all construction documents for the Public Improvements and shall acknowledge that the City may review the same but has no obligations and liabilities thereunder. The Developer shall include a provision in the construction documents for the Public Improvements that the general contractor(s) will indemnify, defend, and save harmless the City against any costs or liabilities thereunder in the same manner provided by Section 16.06 "INDEMNIFICATION" of this Agreement. The Developer or its designee shall administer the Construction Agreements and the Public Improvement Project Costs, which are estimated on Exhibit D, which shall be paid by the Developer or caused to be paid by the Developer. Page 25 of 64 City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement (b) In addition to Section 10.02(a) above the following requirements apply to Construction Agreements for Public Improvements: (i) Plans and specifications shall comply with all Applicable Law, Approved Plans, and City Regulations, and shall be in general conformity to the Concept Plan. All Plans and Specifications shall be reviewed and approved by the City prior to the issuance of permits. The City shall have fifteen (15) business days from its receipt of the first submittal of the Plans and Specifications that are fully compliant with all City Regulations in the City's sole discretion, to approve or deny the Plans and Specifications or to provide comments to the submitter. If any approved Plans and Specifications are amended or supplemented, the City shall have fifteen (15) business days from its receipt of such amended or supplemented Plans and Specifications that are fully compliant with all City Regulations, to approve or deny the Plans and Specification or provide comments back to the submitter; and (ii) Each Construction Agreement shall provide that the general contractor is an independent contractor, independent of and not the agent of the City; and (iii) Building permits for commercial construction shall not be issued until all Public Improvement water infrastructure is deemed substantially complete by the City and all appropriate Fire Code requirements are satisfied and street signs with street names are in place. Temporary, all-weather signs as specified in the Manual of Uniform Traffic Control Devices (MUTCD) securely fastened in the ground are acceptable until permanent street signs are installed. The Developer recognizes that Certificates of Occupancy will not be issued until the supporting public works infrastructure including permanent street signs with block numbers and regulatory signs within the Addition have been accepted by the City. (iv) Building permits for residential construction shall not be issued until all Public Improvements are deemed substantially complete by the City, all appropriate Fire Code requirements are satisfied and street signs with street names are in place. Temporary, all-weather signs as specified in the Manual of Uniform Traffic Control Devices(MUTCD) securely fastened in the ground are acceptable until permanent street signs are installed. The Developer recognizes that the remaining building permits or Certificates of Occupancy for residential dwellings will not be issued until the supporting public works infrastructure including permanent street signs with block numbers and regulatory signs within the residential portions of the Property have been accepted by the City. This will serve as an incentive to the Developer to see that all remaining Public Improvement items are completed. (v) Developer or its Contractor shall pay all applicable fees and costs prior to scheduling a pre-construction meeting with the City, including all of the following: a. Administrative fees equal to a cost per linear foot of all public facilities (streets, sidewalks, water, sewer, drainage, and any other public infrastructure improvements) included in said agreement,based on the current City fee schedule. Page 26 of 64 City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement b. Inspection fees equal to a cost per linear foot of all public facilities (streets, sidewalks, water, sewer, drainage, and any other public infrastructure improvements) included in said Addition, based on the current City fee schedule. c. Developer shall also be responsible for the following fees and costs: i. Cost of trench backfill density testing (95% Standard); ii. All nuclear density tests on the roadway subgrade (95% Standard); iii. Technicians' time for preparing concrete cylinders; iv. Concrete cylinder tests and concrete coring samples; V. All gradation tests required to insure proper cement and/or lime stabilization; vi. Soil series for cement or lime; vii. Any charges for re-testing as a result of failed tests; viii. Water usage after obtaining a fire hydrant meter from the City to be utilized for construction purposes only; ix. Actual charges for inspections during Saturday, Sunday, holidays and after normal working hours will be assessed to the project and payment by the Developer will be required prior to final written acceptance by the City; X. The City can delay connection of private services to public utility mains constructed under this Agreement until water mains, sanitary sewer mains and storm drain lines have been tested and accepted by the City; and xi. Both the Developer its Contractor will be responsible for mowing all grass and weeds and otherwise reasonably maintaining the aesthetics of all land in said Addition. After fifteen (15) days' written notice, should the Developer fail in this responsibility, the City may contract for this service and bill the Developer for reasonable costs. Such amount shall become a lien upon the Property in accordance with City Regulations. (c) Ci . 's Role. City shall have no responsibility for the cost of planning, design, engineering construction, or furnishing/equipping the Public Improvements necessary to achieve Completion of Construction of the Public Improvements. Developer shall not hold the City responsible for any costs of the Public Improvements. The City shall have no liability for any claims that may arise out of the design or construction of the Public Improvements, and the Developer shall cause all general contractors, architects, engineers, and consultants to agree in writing that they will not look to the City for payment of costs and claims associated with Page 27 of 64 City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement construction of the Public Improvements,and the Developer and its Contractor are prohibited from passing through said costs or claims to the City by assignment or otherwise. 10.03. Project Scope Verification. The Developer will from time to time, as reasonably requested by the City Representative, verify to the City Representative that the Public Improvements are being constructed in accordance with the Plans and Specifications approved by the City. To the extent the City has concerns about such verification that cannot be answered by the Developer, to the City's reasonable satisfaction, the Developer will cause the appropriate architect,engineer or general contractor to consult with the Developer and the City regarding such concerns. 10.04. Joint Cooperation; Access for Planning and Development. During the planning, design, development and construction of the Public Improvements,the Parties agree to cooperate and coordinate with each other, and to assign appropriate, qualified personnel to this Development. The City staff will make reasonable efforts to accommodate urgent or emergency requests during construction. In order to facilitate a timely review process, the Developer shall use diligent efforts to cause the architect, engineer and other design professionals to attend City meetings if requested by the City. 10.05. City Not Responsible. By performing the functions described in this Article, the City shall not, and shall not be deemed to, assume the obligations or responsibilities of the Developer, whose obligations under this Agreement and under Applicable Law shall not be affected by the City's exercise of the functions described in this Article. The City shall review Plans and Specifications for compliance with Applicable Law, but the City does not make any representation or warranty concerning the appropriateness of any such Plans and Specifications for any purpose. The City's approval of (or failure to disapprove) any such Plans and Specifications, including the Approved Plans, submitted with such Plans and Specifications and any revisions thereto, shall not render the City liable for same. 10.06. Construction Standards and Inspection. The Public Improvements will be installed within the public right-of-way or in easements granted to the City, or to be granted to the City as set forth herein. Such easements shall be granted at the time of final platting in the final plat or by separate instrument after Completion of Construction of the same. The Public Improvements shall be constructed and inspected in accordance with Applicable Law, and City Regulations, and all other applicable development requirements, including those imposed by any other Governmental Authority. 10.07. Utility Capacity—Water and Wastewater. Upon completion of the applicable water and sewer Public Improvements shown in Exhibit F, Exhibit G, and Exhibit H, the City shall provide water and sewer service to the Property. The capacity and continuity of such service shall be the same as, and provision shall be on the same terms and conditions as, it provides to other of its in-city customers. The City intends to commit such capacity in phases as development proceeds and the City agrees to provide written confirmation of the availability of such capacity reserved in the City system for the Development from time to time as requested by the Developer. Page 28 of 64 City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement 10.08. Public Improvement Constructed on City Land or the Property. If the Public Improvement is on land owned by the City or in a City easement, the City hereby grants to the Developer a temporary easement to enter upon such land for purposes related to testing, design or construction (and maintenance pending acquisition and acceptance) of the Public Improvement. If the Public Improvement is on land owned by the Developer,the Developer shall dedicate easements by plat or shall execute and deliver to the City such access and maintenance easements as the City may reasonably require in recordable form, and the Developer will grant to the City a permanent access and maintenance easement by plat or separate instrument to enter upon such land for purposes related to inspection and maintenance of the Public Improvement. The grant of the permanent easement shall not relieve the Developer of any obligation to grant the City title to property and/or easements for the Public Improvement as required by this Agreement. The provisions for inspection and acceptance of such Public Improvement otherwise provided herein shall apply. 10.09. Additional Requirements. In connection with the design and construction of the Public Improvements, the Developer shall undertake the following responsibilities: (a) The Developer shall provide to the City electronic copies of the Plans and Specifications for the Public Improvements (including revisions) as such Plans and Specifications are currently in existence and as completed after the date hereof and shall provide the City one complete set of record drawings (in electronic format) for the Public Improvements, in accordance with Applicable Law; (b) In accordance with the requirements between the Developer and the City with regard to the development and construction of the Public Improvements, the Developer or such person selected by and contracting with the Developer shall provide the City with a copy of the detailed construction schedule outlining the major items of work of each general contractor, and any written revisions to such schedule; (c) The Developer shall provide construction documents, including the Plans and Specifications to the City, signed and sealed by one or more registered professional architects or engineers licensed in the State of Texas at the time the construction documents are submitted to the City for approval; (d) The Developer, its general contractor, if any, and the City shall provide each party with reasonable advance notice of any scheduled construction meetings as set forth in the construction contracts for the Public Improvements,and shall permit the City to attend and observe such meetings as the City so chooses in order to monitor the progress of the Development; (e) The Developer or any general contractor shall comply with, and shall require that its agents and subcontractors comply with,all Applicable Law regarding the use,removal, storage, transportation, disposal and remediation of hazardous materials; (f) The Developer or any general contractor shall notify and obtain the City's approval for all field changes that directly result in material changes to a portion of the Plans and Page 29 of 64 City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement Specifications for the Public Improvements that describe the connection of such Public Improvements with City streets, storm sewers and utilities; (g) Upon reasonable notice from the City, the Developer shall or shall cause any general contractor to promptly repair, restore or correct, on a commercially reasonable basis, all damage caused by such general contractor or its subcontractors to property or facilities of the City during construction of the Public Improvements and to reimburse the City for reasonable out-of- pocket costs actually incurred by the City that are directly related to the City's necessary emergency repairs of such damage; (h) Upon reasonable notice from the City prior to acceptance by the City of the applicable Public Improvements, the Developer shall promptly cause the correction of defective work and shall cause such work to be corrected in accordance with the construction contracts for the Public Improvements and with City Regulations; (i) If Developer's general contractors, subcontractors, architect, engineers performs any soils, construction and materials testing during construction of the Public Improvements and provide the results of such testing to the Developer,the Developer shall make available to the City copies of the results of all such tests; 0) If the Developer's general contractors, subcontractors, architects, or engineers foregoing entities or persons shall fail in a material respect to perform any of the applicable obligations described in this Section 10.09,the Developer shall use its good faith efforts to enforce such obligations against such entities or persons, or the Developer may cure any material failure of performance as provided herein; (k) The Developer shall provide to the City any other information or documentation or services required by City Regulations with regard to the design and construction of the Public Improvements; (1) The Developer shall allow the City Representative to conduct a reasonable pre-final and final inspection of the Public Improvements. Upon inspection and written acceptance by the City of the Public Improvements, the City shall become responsible for the maintenance of the Public Improvements and making any bond or warranty claim, if applicable,with such acceptance not to be unreasonably withheld, denied, conditioned, or delayed; and (m) Streets, parking lanes, intersections, alleys, mews, sidewalks, driveways, and parking lots, if any, shall be concrete per minimum City specifications as of the effective date of this Agreement unless alternative materials are agreed to by the City. 10.10. Start of Construction. In addition to any other provision of this Agreement, before beginning the construction of the Public Improvements the Developer must do the following: (a) Schedule and attend a pre-construction meeting between Developer and City and including all Contractors, major sub-contractors, utilities and appropriate Governmental Authority; Page 30 of 64 City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement (b) Furnish to the City a list of all subcontractors and suppliers which will be providing greater than$1,000 of work in the Development; and (c) Submit at least two (2) - 22"04" (full size) sets and five (5) - 11"x17" (half size) scalable sets of construction plans to be stamped "Released for Construction" by the Director of Public Works plus any additional sets needed for the developer and contractor. 10.11. Tax Exemption. The City is an exempt organization under Section 151.309, Tax Code, and the Public Improvements constructed under this Agreement will be dedicated to public use and finally accepted by the City. As it relates to the Public Improvements, the purchase of tangible personal property, other than machinery or equipment and its accessories, repair, and replacement parts, for use in the performance of this Agreement may be exempt from taxation under Chapter 151, Tax Code, if the tangible property is: (a) necessary and essential for the performance of the Agreement; and (b) completely consumed at the job site. Also, the purchase of a taxable service for use in the performance of this Agreement as it relates to the Public Improvements may be exempt if the service is performed at the job site and if- (a) this Agreement expressly requires the specific service to be provided or purchased by the person performing the Agreement; or (b) the service is integral to the performance of the Agreement. 10.12. Other Construction Requirements. (a) Prior to final acceptance of the Development, the Developer shall provide to the City two (2) copies of Record Drawings of the Development, showing the facilities as actually constructed. Such drawings shall be stamped and signed by the registered professional engineer of record. In addition, the Developer shall provide electronic files of the drawings in a format acceptable to the City. The project coordinate system must tie to the State Plane Coordinate System. (b) During construction,the Developer shall maintain the dedicated public open spaces in a groomed and maintained condition appropriate, at no cost to the City and at the highest level and standard acceptable to the City. (c) The Public Improvement Project Costs, as set forth in Exhibit D, may be modified or amended from time to time upon the request of Developer and the approval of the City Representative, provided that the total cost of the Public Improvements funded shall not exceed such amounts as set forth in the TIRZ Project and Finance Plan and/or in the SAP, as applicable without further changes to the TIRZ Project and Finance Plan and/or SAP, as applicable. Should the Public Improvements be amended by the City Council at the request of Developer, the City Representative shall be authorized to make, and shall make corresponding changes to the applicable exhibits attached hereto and shall keep official record of such amendments. Page 31 of 64 City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement (d) Payments from the TIRZ are limited to the amounts set forth in the TIRZ Project and Finance Plan and amounts in the TIRZ Fund. Payments from the PID are limited to the SAP and funds in the special improvement district fund of the PID. 10.13. City Police Powers. The Developer recognizes the authority of the City pursuant to the Texas Constitution together with the City's charter and ordinances to exercise its police powers in accordance with Applicable Law to protect the public health, safety, and welfare. The City retains its police powers over the Developer's or its general contractor's construction activities on or at the Property, and the Developer recognizes the City's authority to take appropriate enforcement action in accordance with Applicable Law to provide such protection.No lawful action taken by the City pursuant to these police powers shall subject the City to any liability under this Agreement, including without limitation liability for costs incurred by any general contractor or the Developer, and as between the Developer and the City, any such costs shall be the sole responsibility of the Developer and any of its general contractors. 10.14. Liens.Developer shall provide prompt written notice to the City if it receives notice of any liens, encumbrances, or charges of any kind whatsoever against the Public Improvements arising from any work performed by any contractor by or on behalf of the Developer. The Developer shall not knowingly authorize any claim of lien made by any mechanic, materialman, laborer, or other similar liens to attach against the Public Improvements for work or materials furnished to the Developer in connection with any construction, improvements, renovation, maintenance or repair thereof made by the Developer or any contractor, agent or representative of the Developer. In order to comply with this Section, the Developer shall cause any such claim of lien to be fully discharged prior to the date of dedication and acceptance of the applicable Public Improvement by the City, and may provide proof thereof to the City through final unconditional lien waivers,recorded release of liens, or other bond guarantees. The City shall have no obligation to accept the dedication of any Public Improvements that are encumbered by a lien or any other cloud on title. 10.15. City Consents. Any consent or approval by or on behalf of the City required in connection with the design,construction,improvement or replacement of the Public Improvements or otherwise under this Agreement shall be conducted in a timely and expeditious manner with due regard to the cost to the Developer associated with delay. 10.16. Right of the City to Make Inspection. (a) At any time during the construction of the Public Improvements,the City shall have the right to enter the Property for the purpose of inspection of the progress of construction on the Public Improvements; provided, however, the City Representative shall comply with reasonable restrictions generally applicable to all visitors to the Development that are imposed by the Developer or its general contractor or subcontractors. Inspection of the construction of all Public Improvements shall be by the City Representative. The Developer shall pay all inspection fees in accordance with the City Regulations. (b) City may enter the Property in accordance with customary City procedures and Applicable Law to make any repairs or perform any maintenance of Public Improvements which the City has accepted for maintenance. If, during construction of the Public Improvements, if an Page 32 of 64 City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement Event of Default occurs under this Agreement and the Developer fails to comply with the cure requirements under this Agreement beyond any applicable notice and cure period or in the event of an emergency which is not being timely addressed,the City may enter the Property to make any repairs to the Public Improvements that have not been accepted for maintenance by the City, of every kind or nature,which the Developer is obligated under this Agreement to repair or maintain but which the Developer has failed to perform after reasonable notice (other than in the case of an emergency)and the Developer,or its surety, shall be obligated to reimburse the City the reasonable costs incurred by the City for any such repairs. Nothing contained in this paragraph shall be deemed to impose on the City any obligation to actually make repairs or alterations on behalf of the Developer. ARTICLE XI PAYMENT OF PUBLIC IMPROVEMENTS 11.01. Overall Requirements. (a) The City shall not be obligated to provide funding to Developer from the TIRZ or the PID for any Public Improvement from the TIRZ Fund or special improvement district fund except from Assessments pursuant to an Assessment Funding Agreement,proceeds of PID Bonds, or funding from TIRZ Revenues pursuant to a TIRZ Reimbursement Agreement. The City makes no warranty, either express or implied,that there will be sufficient revenues available in the TIRZ Fund or the special improvement district fund for funding of the Public Improvement Project Costs or that revenues will be sufficient for the construction or acquisition of all of the Public Improvements. Any costs of the Public Improvements in excess of the available Assessments pursuant to an Assessment Funding Agreement or TIRZ Revenues pursuant to a TIRZ Reimbursement Agreement, shall not be paid or reimbursed by the City from the TIRZ Fund or the special improvement district fund, or any other source of City funds. The Developer acknowledges and agrees that any lack of availability of TIRZ Funds or public improvement district funds to immediately reimburse the costs of Public Improvements shall in no way diminish any obligation of the Developer with respect to the construction of the Public Improvements described in this Agreement. Except as provided above, no payment or reimbursement shall be made by City for the Public Improvements as set forth on Exhibit D except as otherwise set forth herein. (b) Upon written acceptance of a Public Improvement and subject to any applicable maintenance-bond period, the City shall be responsible for all operation and maintenance of such Public Improvement, including all costs thereof and relating thereto,unless otherwise provided in this Agreement. (c) The City's obligation with respect to the funding of the Public Improvement Project Costs as finally set forth in the TIRZ Project and Finance Plan, or the SAP, if applicable, shall be limited to the lower of actual costs or the available revenues, and shall be funded from available Assessment revenues or TIRZ Revenues, as applicable. Page 33 of 64 City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement 11.02. Remaining Funds after Completion of a Public Improvement. The SAP shall be updated or amended, as applicable, such that the costs of the Public Improvements in the SAP match the costs set forth in the applicable construction contracts; provided that such adjustment of the SAP does not affect the benefit analysis. After the Completion of Construction of a Public Improvement and payment or reimbursement for such Public Improvement, any remaining budgeted amount(s) shall be available to pay or reimburse costs that exceed the budget on any other Public Improvement. The elimination of an entire category of Public Improvements in the PID will require an amendment to the SAP. Upon receipt of all acceptance letters from the City for the Public Improvements within an improvement category as set forth in the SAP, any remaining budgeted costs from that eliminated category may be released to pay or reimburse for costs that exceeded the budget in another improvement category, as approved by the City Representative and authorized by Applicable Law. 11.03. Payment Process for Public Improvements from Assessments. The Developer shall submit a "Payment Certificate" the form of which will be included with the Assessment Funding Agreement to the City for Public Improvement Project Costs to be paid from Assessments or the proceeds of PID debt to which Assessments are pledged pursuant to the SAP. The City shall promptly review the sufficiency of each Payment Certificate with respect to compliance with this Agreement, conformity with the approved the Concept Plan and Applicable Law, and compliance with the applicable SAP and Plans and Specifications within sufficient time to allow payment of verified amounts thirty (30) business days of receipt of the Payment Certificate from the Developer. After review,the City shall send notice to the Developer of what is approved in each Payment Certificate and what is denied and will notify Developer of additional documentation needed to resolve disputes related to the portions that are denied. Approved costs in a Payment Certificate shall be forwarded for payment within thirty(30)business days of receipt of the Payment Certificate, and the City will work with the Developer to resolve amounts not approved in each Payment Certificate. 11.04. Public ImRrovements Payment from PID Special Improvement District Fund. (a) In the absence of PID bond funds or a positive balance of funds in the PID special improvement district fund, reimbursement for costs of the Public Improvements set forth in the SAP shall be made on an annual basis from Assessments levied for the Public Improvements pursuant the Assessment Funding Agreement and the PID Act, as amended. Such reimbursement shall be made pursuant to the terms and provisions of one or more Assessment Funding Agreements. Such Assessment Funding Agreements shall set forth the terms of the annual payment for the costs of the Public Improvements paid for with Assessments. (b) Reimbursement or payment of the costs of the Public Improvements from the special improvement district fund shall only be made from the levy of Assessments within the PID or the proceeds of PID bonds, if any, as set forth herein and in the SAP. (c) The term, manner and place of payment or reimbursement to the Developer under this Section shall be more fully set forth in the Assessment Funding Agreement. Page 34 of 64 City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement (d) Reimbursement or payment from the special improvement district fund shall be made only for the costs of the Public Improvements as set forth in this Agreement, the SAP, or in the Assessment Funding Agreement, as approved by the City. Any additional public improvements other than the Public Improvements shall not be subject to payment or reimbursement from the special improvement district fund under the terms of this Agreement. 11.05. Payment/Reimbursement of Public Improvement Project Costs from TIRZ Revenues. (a) The City shall authorize the payment or reimbursement of Public Improvement Project Costs from TIRZ Revenues in the TIRZ Fund as set forth in the TIRZ Project and Finance Plan, and the TIRZ Reimbursement Agreement. The City shall annually disburse funds to pay or reimburse the costs of Public Improvements upon Completion of Construction of the Public Improvements and after receipt of a "Reimbursement Request" from the Developer, the form of which will be included with the TIRZ Reimbursement Agreement. Approval of a Reimbursement Request is subject to the Developer providing sufficient documentation of incurred costs of Public Improvements. The City shall review the sufficiency of each Reimbursement Request with respect to compliance with this Agreement,the Approved Plans and Applicable Law,and compliance with the TIRZ Project and Finance Plan. The City shall complete review of each Reimbursement Request within thirty (30) business days and upon approval and after verification of each cost detailed in the Reimbursement Request has occurred, including on-site confirmation by the City Engineer. Upon written approval by the City Engineer, the Reimbursement Request shall be submitted to the City's finance department for payment. The City shall pay or reimburse the eligible Public Improvement Project Costs set forth in this Agreement, and in the TIRZ Project and Finance Plan, provided that in no event will the City be obligated to pay or reimburse from the PID or TIRZ, as applicable, more than the available funds in the special improvement district fund and the TIRZ Fund. (b) If the City timely disapproves or questions the correctness or authenticity of the Reimbursement Request by delivering a detailed notice to the Developer within the thirty(30)day review, then payment with respect to disputed portion(s) of the Reimbursement Request shall not be made until the Developer and the City have jointly resolved such dispute. The City and the Developer shall meet promptly and cooperate to resolve any such disputes as expeditiously as possible. 11.06. Rights to Audit. (a) The City shall have the right to request, upon reasonable notice and at the City's own expense, records of the Developer with respect to the expenditure of funds to pay a Public Improvement Project Costs for a Public Improvement for a period of up to two (2)years following the completion of any Public Improvement, unless otherwise required by Applicable Law. Upon written request by the City, the Developer shall give the City or its agent, access to those certain records controlled by, or in the direct possession of and allowed to be shared by, the Developer (other than records subject to legitimate claims of attorney-client privilege, trade secret, or other legitimate business or legal concern) with respect to the expenditure of Public Improvement Project Costs, and permit the City to review such records in connection with conducting a Page 35 of 64 City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement reasonable audit of such fund and account. The Developer shall make these records available to the City electronically or at a location that is reasonably convenient for City staff. The Developer shall not be required to generate records, lists, data, or other information not already in its control and possession. (b) The City and the Developer shall reasonably cooperate with the assigned independent auditors (internal or external) in this regard, and shall retain and maintain all such records for at least two (2) years from the date of Completion of Construction of the Public Improvements. All audits must be diligently conducted and once begun, no records pertaining to such audit shall be destroyed until such audit is completed. ARTICLE XII REPRESENTATIONS AND WARRANTIES 12.01. Representations and Warranties of City. The City makes the following representations and warranties for the benefit of the Developer: (a) Due Authority;No Conflict. The City represents and warrants that this Agreement has been approved by official action by the City Council and the City has all requisite power and authority to execute this Agreement and to carry out its obligations hereunder and the transactions contemplated hereby. This Agreement has been, and the documents contemplated hereby will be, duly executed and delivered by the City and constitute legal, valid and binding obligations enforceable against the City in accordance with the terms subject to principles of governmental immunity and the enforcement of equitable rights. To the knowledge of the City, the consummation by the City of the transactions contemplated hereby is not in violation of or in conflict with,nor does it constitute a default under,any of the terms of any agreement or instrument to which the City is a party, or by which the City is bound, or of any provision of any Applicable Law and there is no statute, rule, regulation, or executive order promulgated or enacted by a Governmental Authority, known to the City, that is in effect which restrains, enjoins,prohibits, or otherwise makes illegal the consummation of the transactions contemplated by this Agreement. (b) Due Authority;No Liti_ag tion. No litigation is pending or, to the knowledge of the City, threatened in any court to restrain or enjoin the construction of or the Public Improvements or the City's payment and reimbursement obligations under this Agreement, or otherwise contesting the powers of the City or the authorization of this Agreement or any agreements contemplated herein. (c) Legal Proceedings. There is no action,proceeding, inquiry or investigation, at law or in equity, before any court, arbitrator, governmental or other board or official, pending or, to the knowledge of the City against or affecting the City which the outcome of which would (a) materially and adversely affect the validity or enforceability of, or the authority or ability of the City under,this Agreement to perform its obligations under this Agreement, or(b)have a material and adverse effect on the consolidated financial condition or results of operations of the City or on the ability of the City to conduct its business as presently conducted or as proposed or contemplated to be conducted. Page 36 of 64 City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement 12.02. Representations and Warranties of Developer. The Developer makes the following representations and warranties for the benefit of the City: (a) Due Organization and Ownership. The Developer is validly existing under the laws of the State of Texas and is duly qualified to do business in the State of Texas; and that the person executing this Agreement on behalf of it is authorized to enter into this Agreement. (b) Due Authority: No Conflict. The Developer has all requisite power and authority to execute and deliver this Agreement and to carry out its obligations hereunder and the transactions contemplated hereby. This Agreement has been, and the documents contemplated hereby will be, duly executed and delivered by the Developer and constitute the Developer's legal, valid and binding obligations enforceable against the Developer in accordance with their terms. To the knowledge of the Developer, the consummation by the Developer of the transactions contemplated hereby is not in violation of or in conflict with,nor does it constitute a default under, any term or provision of the organizational documents of the Developer, or any of the terms of any agreement or instrument to which the Developer is a parry, or by which the Developer is bound, or of any provision of any Applicable Law, and there is no statute, rule, regulation, or executive order promulgated or enacted by a Governmental Authority, known to the Developer, that is in effect which restrains, enjoins, prohibits, or otherwise makes illegal the consummation of the transactions contemplated by this Agreement. (c) Litigation/Proceedings. To the best knowledge of the Developer, there are no pending or threatened judicial, municipal or administrative proceedings, consent decree or, judgments which might affect the Developer's ability to consummate the transaction contemplated hereby, nor is there a preliminary or permanent injunction or other order, decree, or ruling issued by a governmental entity, and there is no statute, rule, regulation, or executive order promulgated or enacted by a Governmental Authority, that is in effect which restrains, enjoins, prohibits, or otherwise makes illegal the consummation of the transactions contemplated by this Agreement. (d) Legal Proceedings. There is no action,proceeding, inquiry or investigation, at law or in equity, before any court, arbitrator, governmental or other board or official, pending or, to the knowledge of the Developer, threatened against or affecting the Developer, any of the principals of the Developer and any key person or their respective Affiliates and representatives which the outcome of which would(a)materially and adversely affect the validity or enforceability of, or the authority or ability of the Developer under this Agreement to perform its obligations under this Agreement, or (b) have a material and adverse effect on the consolidated financial condition or results of operations of the Developer or on the ability of the Developer to conduct its business as presently conducted or as proposed or contemplated to be conducted. ARTICLE XIII PROPERTY MAINTENANCE AND OTHER AGREEMENTS 13.01. Property Owners Association. (a) Developer agrees to create one or more property owners association(s), or other appropriate entity ("Association"), to assume and be responsible for the continuous and perpetual operation, maintenance, and supervision of structures, landscaping systems or landscape elements Page 37 of 64 City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement or features,water features, landscape irrigation systems, screening walls, living screens,buffering systems, entryway features, including monuments or other signage, or other physical facilities or grounds held in common and necessary or desirable for the welfare of the Property, or that are of common use or benefit and whether or not dedicated to and accepted by the City. A copy of the agreements,covenants and restrictions establishing and creating the Association must be filed with the City Attorney of City prior to the approval of the record plat of the subdivision for the Property and must be filed of record with such record plat in the map and plat records of Tarrant County. (b) At a minimum,the agreements,covenants and restrictions establishing and creating the Association must contain or provide for the following: (1) Definitions of terms contained therein; (2) Provisions for the establishment and organization of the Association and the adoption of bylaws for such Association,including provisions requiring that the owner of any lot within the applicable subdivision and any successive buyer shall automatically and mandatorily become a member of the Association.Developer shall have the right(but not the obligation)to be the sole controlling member of the Association during such periods that Developer owns any portion of the Property; (3) The initial term of the agreements, covenants and restrictions establishing and creating the Association shall be for a 30-year period and shall automatically renew for successive ten-year periods, and the Association may not be dissolved without the prior written consent of the City; (4) Provisions to ensure the continuous and perpetual use, operation, maintenance, and/or supervision of all common area facilities, structures, improvements, systems, and open space owned by the Association that is subject to a public access easement; (5) The right and ability of the City or its lawful agents, after due notice and 60-day cure period to the Association, to perform the responsibilities of the Association if the Association fails to do so in compliance with any provisions of the agreements, covenants or restrictions of the Association or of any applicable City Regulations; to assess the Association for all costs incurred by the City in performing such responsibilities if the Association fails to do so; and/or to avail itself of any other enforcement actions available to the City pursuant to state law or City Regulations; and (6) Provisions indemnifying, defending, and holding the City harmless from any and all costs, expenses,suits,demands,liabilities or damages, including attorney's fees and costs of suit, incurred or resulting from the City's performance of the operation, maintenance or supervision responsibilities of the Association due to the Association's failure to perform such responsibilities unless such costs, expenses, suits, demands, liabilities or Page 38 of 64 City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement damages are caused by the actions of the City, its employees, contractors, or agents. (c) Prior to the City's approval of the plat for any phase of the Development, the Developer will provide the City with a copy of the Association's master declaration of covenants, conditions, and restrictions. ARTICLE XIV TERMINATION AND RECAPTURE 14.01. This Agreement may be terminated upon mutual written agreement of the Parties. If the City Council of the City of Southlake determines in its sole discretion that it will not create a TIRZ prior to December 31, 2026, or authorize the creation of a PID or the issuance of debt after petition by the Developer, then the Developer may, at its option, terminate this Agreement without any further liability to the City. 14.02. City Termination Events. The City may terminate this Agreement as to Developer for any one or more of the following: (a) Upon an uncured Event of Default by Developer pursuant to Article XV herein. (b) If the Developer does not achieve Commencement of Construction, or does not achieve Completion of Construction for the entirety of the Development, in accordance with the deadlines in this Agreement and no extension has been requested or authorized by the City Council. (c) If the Developer applies for a Zoning change for: (i) the commercial portion of the Property that conflicts with Zoning Case No. ZA25-0045, as finally approved by the City Council of the City by Ordinance 480-837; except, the Developer may seek (a) site plan approval for medical office building use for building number 13 on the Concept Plan, and (b) a zoning change for luxury premiere fitness club use ("premiere gym use") for building number 1 only on the Concept Plan (specifically, the premiere gym use shall not be requested by the Developer for any other buildings or lots shown on the Concept Plan, and shall not serve as, nor be a substitute for, any anchor tenant at buildings 4 or 5 on the Concept Plan); or (ii) initiates a zoning change on the residential portion of the Property that requests an increase in the number or density of the single-family lots. 14.03. Developer Termination Events. Developer may terminate this Agreement upon an uncured Event of Default by the City pursuant to Article XV herein, or in accordance with 14.01 above without any further liability to the City any one or more of the following: Page 39 of 64 City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement (a) City fails to adopt a final TIRZ Project and Financing Plan on or before December 3lst 2026. (b) City fails to create the PID (following submission of a valid PID petition) and adopt an SAP prior to December 31 st, 2026. (c) In the absence of a Developer request for reimbursement from annual PID proceeds, City fails to approve a PID bond issuance requested by the Developer in accordance with this Agreement. 14.04. Termination Procedure. If either Party determines that it wishes to terminate this Agreement pursuant to its termination rights under this Article, such Party must deliver a written notice to the other Party specifying in specific detail the basis for such termination and electing to terminate this Agreement. Upon such a termination, the Parties hereto shall have no duty or obligation one to the other under this Agreement, with the exception of (i) any pending Payment Certificates or reimbursement requests relating to Public Improvement Project Costs that were previously advanced or incurred as of the date of termination, provided that a Payment Certificate or reimbursement request for such Public Improvement Project Costs is submitted within ninety(90) days of the termination and is approved by the City pursuant to its normal and usual process for approving such Payment Certificate or Reimbursement Request, or (ii) any obligation of the City under any TIRZ Reimbursement Agreement or Assessment Funding Agreement. 14.05. City Actions Upon Termination. Upon termination of this Agreement or Developer's rights under this Agreement, the Developer shall have no claim or right to any further payments for Public Improvements Project Costs pursuant to this except that, (i) any Public Improvements completed and accepted by the City, (ii) any Public Improvement Project Costs submitted pursuant to a Payment Certificate or Reimbursement Request and approved by the City, and/or (iii) any Public Improvement Costs subject to a TIRZ Reimbursement Agreement or Assessment Funding Agreement shall still be subject to payment subject to the availability of public funds in accordance with this Agreement. Any Payment Certificates or Reimbursement Requests for Public Improvement Project Costs submitted to the City, but still under review at the time of termination may be resolved if subsequently approved by the City. ARTICLE XV DEFAULT AND REMEDIES 15.01. Developer Default. One or more of the following events shall be an "Event of Default" as to the Developer under this Agreement: Page 40 of 64 City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement (a) The Developer shall fail to pay to the City any monetary sum hereby required of it as and when the same shall become due and payable and shall not cure such default within thirty (30) calendar days after the later of the date on which written notice thereof given by the City to the Developer is received by Developer, as provided in this Agreement. The Developer shall fail in any material respect to maintain any of the insurance or surety bonds required by this Agreement; provided, however, that if a contractor of Developer fails to maintain any of the insurance or bonds required by this Agreement, the Developer shall have sixty (60) calendar days to cure from date written notice from City is received by the Developer; (b) The Developer shall fail to comply in any material respect with any material term, provision or covenant of this Agreement, including any Zoning requirement, and shall not cure or commence the cure of such failure within sixty (60) calendar days after written notice thereof by the City is received by the Developer; (c) The filing by Developer of a voluntary proceeding under present or future bankruptcy, insolvency, or other laws respecting debtors, rights; (d) The consent by Developer to an involuntary proceeding under present or future bankruptcy, insolvency, or other laws respecting debtor's rights; (e) The entering of an order for relief against Developer or the appointment of a receiver, trustee, or custodian for all or a substantial part of the property or assets of Developer in any involuntary proceeding, and the continuation of such order,judgment or degree unstayed for any period of ninety (90) consecutive days; (f) The failure by Developer to pay Impositions, and Assessments on property owned by Developer within the Development except for Impositions deferred hereunder if such failure is not cured within thirty(30) calendar days after receipt of written notice from the City; (g) Any representation or warranty confirmed or made in this Agreement by the Developer was fraudulent or untrue in any material respect as of the Effective Date, or any act of bribery involving an employee of the City, its officers, or elected officials, or any offensive act inconsistent with the values of the City and its goals, including,but not limited to the City's ethics code, rules, or regulations; (h) The Developer refuses to develop the Property pursuant to the City Regulations and fails to cure or commence the cure of such failure within sixty (60) calendar days after receipt of written notice is given by the City to the Developer; or (i) Any Commencement of Construction Date or Completion Date, as such dates may be extended, by Force Majeure or as otherwise as set forth herein, is not met by the Developer pursuant to this Agreement, subject to the extensions permitted and provided hereunder. Page 41 of 64 City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement 15.02. Notice and Cure Period. (a) Before any Event of Default under this Agreement shall be deemed to be a breach of this Agreement, the Party claiming such Event of Default shall notify, in writing, the Party alleged to have failed to perform the alleged Event of Default and shall demand performance(with the exception of 15.01(c-i) above). Except with respect to cure periods set forth in 15.01 above, which shall be controlling, no breach of this Agreement may be found to have occurred if performance has commenced to the reasonable satisfaction of the complaining Party within thirty (30) calendar days of the receipt of such notice, with completion of performance, if reasonably achievable,within ninety(90)calendar days(or thirty(30)calendar days in the case of a monetary default) If completion of performance is not reasonably achievable within ninety (90) calendar days, no breach will be found to have occurred so long as the Party accused of said breach has commenced the cure in the timeframe set forth above and diligently pursues such cure to completion. (b) Notwithstanding any provision in this Agreement to the contrary, if the performance of any covenant or obligation to be performed or cured hereunder by any Parry is delayed by Force Majeure,the time for such performance shall be extended by the amount of time of the delay directly caused by and relating to such uncontrolled circumstances. The Party claiming delay of performance as a result of any Force Majeure events shall deliver written notice of the commencement of any such delay resulting from such Force Majeure event and the length the Force Majeure event is reasonably expected to last not later than thirty(30)days after the claiming Parry becomes aware of the same, and if the claiming Party fails to so notify the other Parry of the occurrence of a Force Majeure event causing such delay, the claiming Party shall not be entitled to avail itself of the provisions for the extension of performance contained in this Article. 15.03. City's Remedies. With respect to the occurrence of an Event of Default the City may pursue any of the following remedies: (a) The City may terminate this Agreement as to any phase for which an uncured Event of Default has occurred. The City shall not terminate this Agreement unless it delivers to the Developer a second notice expressly providing that the City will terminate as to such phase within thirty (30) additional days if such default is not cured and allowing the Developer to cure or commence curing the Event of Default within those thirty (30) days. Termination or non- termination of this Agreement upon a Developer Event of Default shall not prevent the City from suing the Developer for damages, actual damages, excluding punitive, special and consequential damages, injunctive relief or other available remedies with respect to obligations that expressly survive termination. (b) No remedy herein conferred or reserved is intended to be exclusive of any other available remedy or remedies,but each and every such remedy shall be cumulative and shall be in addition to every other remedy given hereunder now or hereafter existing at law or in equity. The exercise of any remedy herein conferred or reserved shall not be deemed a waiver of any other available remedy. Page 42 of 64 City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement (c) RecMture/Repayment. In the event this Agreement is terminated by the City pursuant to Section 15.01(c-i) above or any other provision in this Agreement referencing recapture or repayment, the Developer shall be liable for and will pay to the City within sixty(60) days following the termination of this Agreement: (1) Chapter 380 Incentive Grants previously paid to the Developer pursuant to this Agreement, and (2) the amount of all City Tax Increment reimbursed as part of this Agreement or any TIRZ Reimbursement Agreement. 15.04. Developer's Remedies. (a) Upon the occurrence of any Event of Default by the City,the Developer may pursue any remedy or remedies at law or in equity specifically including damages authorized under Texas Local Gov't Code Ch. 271, mandamus and other equitable remedies authorized by law, and termination of this Agreement; provided, however, that the Developer shall have no right to terminate this Agreement unless the Developer delivers to the City a second notice, which expressly provides that the Developer will terminate within thirty (30) days if the default is not addressed as herein provided. (b) No remedy herein conferred or reserved is intended to be inclusive of any other available remedy or remedies,but each and every such remedy shall be cumulative and shall be in addition to every other remedy given hereunder now or hereafter existing. The exercise of any remedy herein conferred or reserved shall not be deemed a waiver of any other available remedy. 15.05. Governmental Functions and Immunity. The Parties hereby acknowledge and agree that the City is entering into this Agreement pursuant to its governmental functions and that nothing contained in this Agreement shall be construed as constituting a waiver of the City's police power, legislative power, or governmental immunity from suit or liability, which are expressly reserved to the extent allowed by law or to the extent set forth herein. The Parties agree that this is an Agreement for goods or services to the City. To the extent a Court of competent jurisdiction determines that the City's governmental immunity from suit or liability is waived in any manner, or and that this Agreement is subject to the provisions of Subchapter I of Chapter 271 of the Texas Local Gov't Code, as amended, the City's immunity from suit may be waived only as set forth in Subchapter I of Chapter 271, Texas Local Gov't Code. Further, the Parties agree that this Agreement is made subject to all applicable provisions of the Texas Civil Practice and Remedies Code, including but not limited to all defenses, limitations, and exceptions to the limited waiver of immunity from liability provided in Chapter 101 and Chapter 75. 15.06. Limitation on Damages. IN NO EVENT SHALL ANY PARTY HAVE ANY LIABILITY UNDER THIS AGREEMENT FOR ANY PUNITIVE SPECIAL, OR CONSEQUENTIAL DAMAGES. 15.07. Waiver. Forbearance by the non-defaulting Party to enforce one or more of the remedies herein provided upon the occurrence of an Event of Default by the other Party shall not be deemed or construed to constitute a waiver of such default. One or more waivers of a breach of any covenant,term or condition of this Agreement by either Party hereto shall not be construed by the other Party as a waiver of a different or subsequent breach of the same covenant, term, or condition. The consent or approval of either Parry to or of any act by the other Party of a nature Page 43 of 64 City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement requiring consent or approval shall not be deemed to waive or render unnecessary the consent to or approval of any other subsequent similar act. ARTICLE XVI INSURANCE,INDEMNIFICATION,AND RELEASE 16.01. Insurance. With no intent to limit the Developer's or any general contractor's liability or obligation for indemnification, the Developer and its Contractor shall maintain or cause to be maintained, by the persons constructing the Public Improvements, certain insurance, as provided below in full force and effect at all times during construction of the Public Improvements and the Development: (a) With regard to the obligations of this Agreement, the Developer shall obtain and maintain in full force and effect at its expense, or shall cause each general contractor to obtain and maintain at their expense, the following policies of insurance and coverage: (i) Commercial general liability insurance insuring the City,general contractor and the Developer against liability for injury to or death of a person or persons and for damage to property occasioned by or arising out of the activities of Developer, the contractor, the City and their respective officers, directors, agents, contractors, or employees, in the amount of$2,000,000 Per Occurrence or a limit equal to the amount of the contract amount, $6,000,000 General Aggregate Bodily Injury and Property Damage, and $10,000,000 in builder's risk coverage. The general contractor may procure and maintain a master or controlled insurance policy to satisfy the requirements of this Section, which may cover other property or locations of the general contractor and its affiliates, so long as the coverage required in this Section is separate; (ii) Worker's Compensation insurance as required by law; (iii) Business automobile insurance covering all operations of the general contractor pursuant to the Construction Agreement involving the use of motor vehicles, including all owned, non-owned and hired vehicles with minimum limits of not less than One Million Dollars ($2,000,000) combined single limit for bodily injury, death and property damage liability; (iv) To the extent available, each policy of commercial general liability, Worker's Compensation, and automobile liability insurance shall be endorsed to provide that the insurer waives all rights of subrogation against the City; (v) Each policy, with the exception of Worker's Compensation and professional liability shall be endorsed to include the "City of Southlake, a Texas home rule municipality (including its former, current, and future officers, directors, agents, and employees)" as additional insureds; Page 44 of 64 City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement (vi) The commercial general liability and automobile liability insurance, shall be endorsed to provide the City sixty (60) days' written notice prior to any cancellation, termination or material change of coverage; and (vii) The Developer shall cause each general contractor to deliver to the City the policies, copies of policy endorsements, and/or certificates of insurance evidencing the required insurance coverage before the Commencement of Construction of the Public Improvements and within twenty (20) days before expiration of coverage, or as soon as practicable, deliver renewal policies or certificates of insurance evidencing renewal and payment of premium. On every date of renewal of the required insurance policies, the general contractor shall cause a certificate of insurance and policy endorsements to be issued evidencing the required insurance herein and delivered to the City. The Contractor shall within ten (10) business days after written request provide the City with the Certificates of Insurance and policy endorsements for the insurance required herein(which request may include copies of such policies). 16.02. Waiver of Subrogation Rights. The Commercial General Liability, Builder's Risk, Worker's Compensation, Business Auto and Excess Liability Insurance required pursuant to this Agreement shall provide for waivers of all rights of subrogation against the City. 16.03. Additional Insured Status. With the exception of Worker's Compensation Insurance and any Professional Liability Insurance, all insurance required pursuant to this Agreement shall include and name the "City of Southlake, a Texas home rule municipality (including its former, current, and future officers, directors, agents, and employees)" as an additional insured under such insurance policies. Additional Insured Endorsements shall provide the most comprehensive coverage to the City under Texas law including products/completed operations. 16.04. Certificates of Insurance. Certificates of Insurance and policy endorsements in a form reasonably satisfactory to City shall be delivered to City prior to the commencement of any work or services on the Public Improvements. All required policies shall be endorsed to provide the City with sixty (60) days advance notice of cancellation or non-renewal of coverage. The Developer shall provide sixty (60) days written notice of any cancellation, non-renewal or material change in coverage for any of the required insurance in this Article. On every date of renewal of the required insurance policies, the Developer shall provide (and cause its contractors to provide) a certificate of insurance and policy endorsements to be issued evidencing the required insurance herein and delivered to the City. In addition, the Developer shall, within ten (10) business days after written request, provide the City with certificates of insurance and policy endorsements for the insurance required herein(which request may include copies of such policies). The delivery of the certificates of insurance and the policy endorsements (including copies of such insurance policies) to the City is a condition precedent to the payment of any amounts to the Developer by the City. 16.05. Carriers. All policies of insurance required to be obtained by the Developer and its general contractors pursuant to this Agreement shall be maintained with insurance carriers that Page 45 of 64 City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement are satisfactory to and as reasonably approved by City, and lawfully authorized to issue insurance in the state of Texas for the types and amounts of insurance required herein. All insurance companies providing the required insurance shall be authorized to transact business in Texas and rated at least "A"by AM Best or other equivalent rating service. All policies must be written on a primary basis, non-contributory with any other insurance coverage and/or self-insurance maintained by the City. All insurance coverage required herein shall be evidenced by a certificate of insurance and policy endorsements submitted by the Developer's and its general contractors' insurer or broker. Certificates of insurance and policy endorsements received from any other source will be rejected. 16.06. INDEMNIFICATION. CITY SHALL NOT BE LIABLE FOR ANY LOSS,DAMAGE,OR INJURY OF ANY KIND OR CHARACTER TO ANY PERSON OR PROPERTY ARISING FROM THE ACTS OR OMISSIONS OF THE DEVELOPER OR ITS GENERAL CONTRACTORS PURSUANT TO THIS AGREEMENT. THE DEVELOPER HEREBY WAIVES ALL CLAIMS AGAINST CITY AND ITS COUNCIL, DIRECTORS, OFFICERS, AGENTS, AND EMPLOYEES (COLLECTIVELY REFERRED TO AS THE "CITY REPRESENTATIVES") FOR DAMAGE TO ANY PROPERTY OR INJURY TO, OR DEATH OF,ANY PERSON ARISING AT ANY TIME AND FROM ANY CAUSE(OTHER THAN THE NEGLIGENCE, COMPARATIVE NEGLIGENCE, CONTRIBUTORY NEGLIGENCE, SOLE NEGLIGENCE, GROSS NEGLIGENCE OR WILLFUL ACT OF THE CITY REPRESENTATIVES) ARISING FROM THE ACTS OR OMISSIONS OF THE DEVELOPER OR ITS CONTRACTORS PURSUANT TO THIS AGREEMENT. DEVELOPER DOES HEREBY INDEMNIFY, DEFEND, AND SAVE HARMLESS THE CITY REPRESENTATIVES FROM AND AGAINST ANY AND ALL LIABILITIES, DAMAGES, CLAIMS, SUITS, COSTS (INCLUDING COURT COSTS, ATTORNEYS' FEES AND COSTS OF INVESTIGATION) AND ACTIONS OF ANY KIND BY REASON OF INJURY TO OR DEATH OF ANY PERSON, OR DAMAGE TO OR LOSS OF PROPERTY ARISING FROM TO THE EXTENT CAUSED BY DEVELOPER'S BREACH OF ANY OF THE TERMS OR CONDITIONS OF THIS AGREEMENT,OR BY REASON OF ANY NEGLIGENT ACT OR OMISSION ON THE PART OF DEVELOPER, ITS OFFICERS, DIRECTORS, SERVANTS, AGENTS, EMPLOYEES, REPRESENTATIVES, CONTRACTORS, SUB-CONTRACTOR(S), LICENSEES, IN THE PERFORMANCE OF THIS AGREEMENT (EXCEPT WHEN SUCH LIABILITY, CLAIMS, SUITS, COSTS, INJURIES, DEATHS OR DAMAGES ARISE DIRECTLY FROM OR ARE ATTRIBUTED TO THE NEGLIGENCE, COMPARATIVE NEGLIGENCE, CONTRIBUTORY NEGLIGENCE, SOLE NEGLIGENCE, GROSS NEGLIGENCE, OR WILLFUL ACT OF THE CITY REPRESENTATIVES). NOTWITHSTANDING THE FOREGOING, IN THE EVENT OF JOINT OR CONCURRENT NEGLIGENCE OF BOTH THE CITY REPRESENTATIVES AND DEVELOPER, THE RESPONSIBILITY, IF ANY, SHALL BE APPORTIONED COMPARATIVELY AMONG THOSE PARTIES IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS, WITHOUT, HOWEVER, WAIVING ANY GOVERNMENTAL IMMUNITY AVAILABLE TO THE CITY REPRESENTATIVES AND WITHOUT WAIVING ANY DEFENSES OF THE PARTIES UNDER TEXAS LAW. THE PROVISIONS OF THIS SECTION ARE SOLELY FOR THE BENEFIT OF THE Page 46 of 64 City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement PARTIES HERETO AND THEIR RESPECTIVE SUCCESSORS AND PERMITTED ASSIGNS AND NOT INTENDED TO CREATE OR GRANT ANY RIGHTS, CONTRACTUAL OR OTHERWISE, TO ANY OTHER PERSON OR ENTITY. THE DEVELOPER'S OBLIGATIONS UNDER THIS SECTION SHALL NOT BE LIMITED TO THE LIMITS OF COVERAGE OF INSURANCE MAINTAINED OR REQUIRED TO BE MAINTAINED BY DEVELOPER UNDER THIS AGREEMENT. THIS PROVISION SHALL SURVIVE THE TERMINATION OF THIS AGREEMENT. ARTICLE XVII GENERAL PROVISIONS 17.01. Notices. Any notice,communication,or disbursement required to be given or made hereunder shall be in writing and shall be given or made by hand delivery, overnight courier, electronic mail, or by United States mail, certified or registered mail, return receipt requested, postage prepaid. The Parties are permitted to send an additional confirming copy by e-mail or at such other addresses as may be specified in writing by any Party hereto to the other Party hereto. Each notice which shall be mailed or delivered in the manner described above shall be deemed sufficiently given, served, sent and received for all purpose at such time as it is received by the addressee (with return receipt, the delivery receipt or the affidavit of messenger being deemed conclusive evidence of such receipt) at the following addresses: To the City: City of Southlake 1400 Main Street, Suite 460 Southlake, TX 75062 Attn: Alison D. Ortowski , City Manager With a copy to: Taylor, Olson, Adkins, Sralla& Elam, LLP 6000 Western Place, Suite 200 Fort Worth, Texas 76107 Attn: Dean Roggia To Developer: Trademark Retail Holdings, LLC 1701 River Run#500 Fort Worth, Texas 76107 Attn: Kevin Kessinger With copy to: Page 47 of 64 City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement Winstead PC 2728 N. Harwood St. 500 Winstead Bldg. Dallas, Texas 75201 Attn: Sarah Landiak 17.02. Mutual Assistance. The Parties shall do all things reasonably necessary or appropriate to carry out the terms and provisions of this Agreement and to aid and assist each other in carrying out such terms and provisions. 17.03. Assignment. (a) This Agreement shall be binding upon and inure to the benefit of the successors and assigns of the Parties. The rights and obligations of this Agreement, or the rights and obligations of this Agreement as to any phase of the Development or any portion of the Public Improvements may be assigned to (i) any Affiliate of Developer or(ii) an institutional operator of similarly-situated commercial or retail developments who acquires all or a portion of the Property without the prior written consent of the City. The obligations, requirements or covenants to the development of the Property, including construction of the Public Improvements shall not be otherwise assigned without the prior written consent of the City Council, which consent shall not be unreasonably withheld if the assignee demonstrates the financial ability to perform in the reasonable judgment of the City Council. Each assignment shall be in writing executed by Developer and the assignee and shall obligate the assignee to be bound by this Agreement to the extent this Agreement applies or relates to the obligations, rights, title or interests being assigned. No assignment by Developer shall release Developer from any liability that resulted from an act or omission by Developer that occurred prior to the effective date of the assignment unless the City approves the release in writing. The Developer shall maintain written records of all assignments made by Developer to Assignee, including a copy of each executed assignment and the Assignee's notice information as required by this Agreement, and, upon written request from the City, any Party or Assignee, shall provide a copy of such records to the requesting person or entity, and this obligation shall survive the assigning Party's sale, assignment, transfer or other conveyance of any interest in this Agreement or the Property. (b) The Developer and assignees have the right, from time to time, to collaterally assign, pledge, grant a lien or security interest in, or otherwise encumber any of their respective rights, title, or interest under this Agreement, the Assessment Funding Agreement, or the TIRZ Reimbursement Agreement for the benefit of their respective lenders without the consent of, but with prompt written notice to,the City. The collateral assignment,pledge,grant of lien or security interest, or other encumbrance shall not, however, obligate any lender to perform any obligations or incur any liability under this Agreement unless the lender agrees in writing to perform such obligations or incur such liability. Provided the City has been given a copy of the documents creating the lender's interest, including notice information for the lender, then that lender shall have the right, but not the obligation, to cure any default under this Agreement within thirty (30) days written notice to the lender. A lender is not a party to this Agreement unless this Agreement is amended, with the consent of the lender, to add the lender as a Parry. Notwithstanding the foregoing, however, this Agreement shall continue to bind the Property and shall survive any Page 48 of 64 City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement transfer, conveyance, or assignment occasioned by the exercise of foreclosure or other rights by a lender,whether judicial or non judicial. Any purchaser from or successor owner through a lender of any portion of the Property shall be bound by this Agreement and shall not be entitled to the rights and benefits of this Agreement with respect to the acquired portion of the Property until all defaults under this Agreement with respect to the acquired portion of the Property have been cured. The City shall not be required to make partial payments to more than two parties as a result of an assignment and shall not execute any consent or make any representations with respect thereto. 17.04. Table of Contents; Titles and Headings. The titles of the articles, and the headings of the sections of this Agreement are solely for convenience of reference, are not a part of this Agreement, and shall not be deemed to affect the meaning, construction, or effect of any of its provisions. 17.05. Entire Agreement; Amendment. This Agreement is the entire agreement between the Parties with respect to the subject matter covered in this Agreement. There is no other collateral oral or written agreement between the Parties that in any manner relates to the subject matter of this Agreement. This Agreement may only be amended by a written agreement executed by all Parties. 17.06. Time. In computing the number of days for purposes of this Agreement, all days will be counted, including Saturdays, Sundays, and legal holidays; however, if the final day of any time period falls on a Saturday, Sunday, or legal holiday, then the final day will be deemed to be the next day that is not a Saturday, Sunday, or legal holiday. 17.07. Counterparts. This Agreement may be executed in any number of counterparts, each of which will be deemed to be an original, and all of which will together constitute the same instrument. A signature transmitted by facsimile or e-mail transmission shall be deemed to be an original for all purposes. 17.08. Severability. If any provision of this Agreement is illegal, invalid, or unenforceable,under present or future laws, it is the intention of the Parties that the remainder of this Agreement not be affected and, in lieu of each illegal, invalid, or unenforceable provision, a provision be added to this Agreement which is legal, valid, and enforceable and is as similar in terms to the illegal, invalid, or enforceable provision as is possible. 17.09. No Waiver. Except as otherwise provided herein, any failure by a Party to insist upon strict performance by the other Party of any material provision of this Agreement will not be deemed a waiver or of any other provision, and such Parry may at any time thereafter insist upon strict performance of any and all of the provisions of this Agreement. 17.10. No Third-Party Beneficiaries. The City and the Developer intend that this Agreement shall not benefit or create any right or cause of action in or on behalf of any third- party beneficiary, or any individual or entity other than the City, the Developer or assignees of such Parties. 17.11. No Joint Venture. Nothing contained in this Agreement or any other agreement Page 49 of 64 City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement between the Parties is intended by the Parties to create a partnership or joint venture between or among the Developer and the City, and any implication to the contrary is hereby expressly disavowed. It is understood and agreed that this Agreement does not create a joint enterprise, nor does it appoint either Party as an agent of the other for any purpose whatsoever. Neither Party shall in any way assume any of the liability of the other for acts of the other or obligations of the other. Each Party shall be responsible for any and all suits,demands, costs,or actions proximately resulting from its own individual acts or omissions. 17.12. Independence of Action. It is understood and agreed by and among the Parties that in the design, construction and development of the Public Improvements and any of the related improvements described herein, and in the Parties' satisfaction of the terms and conditions of this Agreement, that each Parry is acting independently, and the City assumes no responsibility or liability to any third-party in connection to the Developer's obligations hereunder. 17.13. Limited Recourse. No officer,director,employee, agent,attorney or representative of the Developer shall be deemed to be a Party to this Agreement or shall be liable for any of the contractual obligations created hereunder. No elected official of the City and no agent, attorney or representative of the City shall be deemed to be a Party to this Agreement or shall be liable for any of the contractual obligations created hereunder. 17.14. Exhibits. All exhibits to this Agreement are incorporated herein by reference for all purposes wherever reference is made to the same. 17.15. No Consent to Third-Party Financing. Without in any way interfering with the Developer's rights set forth in Section 17.03(b), the City does not and shall not consent to nor participate in any way in any third-parry financing based upon the Developer's assignment of its right to receive funds pursuant to this Agreement or any Payment/Reimbursement Agreement. 17.16. Survival of Covenants. Any of the representations, warranties, covenants, and obligations of the Parties, as well as any rights and benefits of the Parties, pertaining to a period of time following the termination of this Agreement shall survive termination. 17.17. No Acceleration. All amounts due pursuant to this Agreement and any remedies under this Agreement are not subject to acceleration. 17.18. Undocumented Workers. The Developer covenants and certifies that it does not and will not knowingly employ an undocumented worker as that term is defined by Section 2264.001(4) of the Texas Government Code. In accordance with Section 2264.052 of the Texas Government Code, if Developer is convicted of a violation under 8 U.S.C. Section 1324a (f), Developer shall repay to the City the full amount of all payments made under this Agreement, plus five percent(5%) interest per annum from the date such payment was made until the date of full repayment. Repayment shall be paid within one hundred twenty (120) days after the date Developer receives a notice of violation from the City. 17.19. Recording Fees. Any fees associated with the recording of documents in the real property records of Tarrant County in order to give notice of the property owners association Page 50 of 64 City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement actions, covenants, or restrictions, or notice of Assessments, shall be paid by the Developer. Ongoing recording in the real property records of Tarrant County of updates to the SAP and other PID notices shall be paid as an administrative expense of the PID. 17.20. Public Information. Notwithstanding any other provision to the contrary in this Agreement, all information, documents, and communications relating to this Agreement may be subject to the Texas Public Information Act and any opinion of the Texas Attorney General or a court of competent jurisdiction relating to the Texas Public Information Act. The requirements of Subchapter J,Chapter 552,Government Code,may apply to this Agreement and each Party agrees that this Agreement may be terminated if a Party knowingly or intentionally fails to comply with a requirement of Subchapter J, if applicable. 17.21. Ethics Disclosure. The Developer represents that it has completed a TEC form 1295 ("Form 1295") generated by the TEC's electronic filing application in accordance with the provisions of Texas Government Code 2252.908 and the rules promulgated by the TEC. The Parties agree that, with the exception of the information identifying the City and the contract identification number,the City is not responsible for the information contained in the Form 1295. The information contained in the Form 1295 has been provided solely by Developer and the City has not verified such information. 17.22. Anti-Boycott Verification. The Developer hereby verifies that it and its parent company, wholly- or majority-owned subsidiaries, and other affiliates, if any, do not boycott Israel and will not boycott Israel during the term of this Agreement. The foregoing verification is made pursuant to Section 2271.002, Texas Government Code. As used in the foregoing verification, `boycott Israel' means refusing to deal with, terminating business activities with, or otherwise taking any action that is intended to penalize, inflict economic harm on, or limit commercial relations specifically with Israel, or with a person or entity doing business in Israel or in an Israeli-controlled territory, but does not include an action made for ordinary business purposes. The Developer understands `affiliate' to mean an entity that controls, is controlled by, or is under common control with the Developer and exists to make a profit. 17.23. Iran, Sudan and Foreign Terrorist Organizations. The Developer represents that neither it nor any of its parent company, wholly- or majority-owned subsidiaries, and other affiliates is a company identified on a list prepared and maintained by the Texas Comptroller of Public Accounts under Section 2252.153 or Section 2270.0201, Texas Government Code, and posted on any of the following pages of such officer's internet website: https:Hcomptroller.texas.gov/purchasing/docs/sudan-list.pdf, https:Hcomptroller.texas.gov/purchasing/docs/iran-list.pdf, or https:Hcomptroller.texas.gov/purchasing/docs/fto-list.pdf. The foregoing representation is made pursuant to Section 2252.152, Texas Government Code and excludes the Developer and each of its parent company, wholly- or majority-owned subsidiaries, and other affiliates, if any, that the United States government has affirmatively declared to be excluded from its federal sanctions regime relating to Sudan or Iran or any federal sanctions regime relating to a foreign terrorist Page 51 of 64 City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement organization. The Developer understands"affiliate"to mean any entity that controls,is controlled by, or is under common control with the Developer and exists to make a profit. 17.24. Governing. The Agreement shall be governed by the laws of the State of Texas without regard to any choice of law rules; and venue for any action concerning this Agreement shall be in the State District Court of Tarrant County, Texas. 17.25. Petroleum. Pursuant to Section 2274.002 (as added by Senate Bill 13 in the 87th Texas Legislature,Regular Session),Texas Government Code,as amended,the Developer hereby verifies that it and its parent company, wholly- or majority-owned subsidiaries, and other affiliates, if any, do not boycott energy companies and will not boycott energy companies during the term of this Agreement. As used in the foregoing verification, "boycott energy companies" shall mean, without an ordinary business purpose, refusing to deal with, terminating business activities with, or otherwise taking any action that is intended to penalize, inflict economic harm on, or limit commercial relations with a company because the company (A) engages in the exploration, production, utilization, transportation, sale, or manufacturing of fossil fuel-based energy and does not commit or pledge to meet environmental standards beyond applicable federal and state law; or (B) does business with a company described by (A) above. The Developer understands "affiliate" to mean an entity that controls, is controlled by, or is under common control with the Developer within the meaning of SEC Rule 133(f), 17 C.F.R. §230.133(f), and exists to make a profit. 17.26. Firearms. Pursuant to Section 2274.002 (as added by Senate Bill 19 in the 87th Texas Legislature,Regular Session),Texas Government Code,as amended,the Developer hereby verifies that it and its parent company, wholly- or majority-owned subsidiaries, and other affiliates, if any, do not have a practice, policy, guidance, or directive that discriminates against a firearm entity or firearm trade association and will not discriminate during the term of this Agreement against a firearm entity or firearm trade association. As used in the foregoing verification, `discriminate against a firearm entity or firearm trade association' (A) means, with respect to the firearm entity or firearm trade association,to (i)refuse to engage in the trade of any goods or services with the firearm entity or firearm trade association based solely on its status as a firearm entity or firearm trade association, (ii) refrain from continuing an existing business relationship with the firearm entity or firearm trade association based solely on its status as a firearm entity or firearm trade association,or(iii)terminate an existing business relationship with the firearm entity or firearm trade association based solely on its status as a firearm entity or firearm trade association and(B) does not include(i)the established policies of a merchant,retail seller,or platform that restrict or prohibit the listing or selling of ammunition,firearms, or firearm accessories and(ii) a company's refusal to engage in the trade of any goods or services, decision to refrain from continuing an existing business relationship, or decision to terminate an existing business relationship (aa) to comply with federal, state, or local law, policy, or regulations or a directive by a regulatory agency or (bb) for any traditional business reason that is specific to the customer or potential customer and not based solely on an entity's or association's status as a firearm entity or firearm trade association. As used in the foregoing verification, (b) `firearm entity' means a manufacturer, distributor, wholesaler, supplier, or retailer of firearms (i.e., weapons that expel projectiles by the action of explosive or expanding gases),firearm accessories (i.e., devices specifically designed or adapted to enable an individual to wear, carry, store, or Page 52 of 64 City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement mount a firearm on the individual or on a conveyance and items used in conjunction with or mounted on a firearm that are not essential to the basic function of the firearm, including detachable firearm magazines), or ammunition (i.e., a loaded cartridge case, primer, bullet, or propellant powder with or without a projectile) or a sport shooting range (as defined by Section 250.001, Texas Local Government Code), and (c) `firearm trade association' means a person, corporation,unincorporated association,federation,business league,or business organization that (i) is not organized or operated for profit (and none of the net earnings of which inures to the benefit of any private shareholder or individual),(ii)has two or more firearm entities as members, and(iii) is exempt from federal income taxation under Section 501(a), Internal Revenue Code of 1986, as an organization described by Section 501(c) of that code. The Developer understands "affiliate" to mean an entity that controls, is controlled by, or is under common control with the Developer within the meaning of SEC Rule 133(f), 17 C.F.R. §230.133(f), and exists to make a profit. 17.27. Conflict. In the event of any conflict between this Agreement and any payment/reimbursement agreement authorized under this Agreement, then this Agreement shall control, except that in all cases, Applicable Law shall control. 17.28. Performance by Affiliate. For purposes of this agreement performance by an Affiliate of Developer or a person or entity with whom Developer contracts shall be deemed to be performance by Developer. 17.29. Estoppel Certificates. From time to time upon written request of the Developer or any future owner, and upon the payment of a$100.00 fee to the City,the City Manager, or his/her designee will, in his/her official capacity and to his reasonable knowledge and belief, and without waiving any claim,providing any warranty,or promising to indemnify,execute a written estoppel certificate identifying any Developer obligations under this Agreement that are in default. 17.30. Recordation. This Agreement, or a memorandum of this Agreement shall be recorded in the official deed records of Tarrant County, Texas; provided, however, any memorandum of this Agreement shall not modify any terms or conditions of this Agreement. 17.31. Time of the Essence. The Parties agree that with respect to the performance of the obligations of each time is of the essence. The requirement for a Traffic Impact Analysis is waived for all phases. [SIGNATURES ON FOLLOWING PAGES] [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] Page 53 of 64 City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement CITY OF SOUTHLAKE By: Name: Title: City Manager ATTEST: City Secretary STATE OF TEXAS § COUNTY OF § This instrument was acknowledged before me on this day of , 2026, by , of the City of Southlake, a Texas home rule municipality, on behalf of said City. Notary Public in and for the State of Texas [SEAL] [SIGNATURES CONTINUE ON NEXT PAGE] Page 54 of 64 City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement TRADEMARK RETAIL HOLDINGS, LLC,A TEXAS LIMITED LIABILITY COMPANY By: Name: Title: STATE OF TEXAS § COUNTY OF § This instrument was acknowledged before me on this day of , 2026, by , of Trademark Retail Holdings, LLC, a Texas limited liability company, on behalf of said corporation. Notary Public in and for the State of Texas [SEAL] Page 55 of 64 City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement EXHIBIT A THE PROPERTY DESCRIBED AS TRACTS 1A AND 1A03, JAMES J. WEST SURVEY ABSTRACT NO. 1620, BEING APPROXIMATELY 40.201 ACRES MORE OR LESS, AND LOCATED AT 1800 AND 1900 N.WHITE CHAPEL BLVD.,IN THE CITY OF SOUTHLAKE,TARRANT COUNTY, TEXAS 7 }k4 .tip!t'!�.1.'�•.e_". ��-74s..�J `, ildl 09111. 2' 26 21. SI 6824 IE' 9 181: IBI6 , F` IdO R Y 1 220 18131 1812 6 i. 1-12 41 � 4 City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement EXHIBIT B CONCEPT PLAN - . FUTURE SINGLE FAMILY �► �• DEVELOPMENT • ti+ { • , All or W IR, r• \t C} u f S±i► ;p* z ' . FUTURE SINGLE FAMILY • `s * ;\ - DEVELOPMENT .�' rop WIN I t ,. ,� • rapl ii ,� � 'top �r4� � �:pi ii y • rr r w ,�� �ii• R s R� •• N.White Chapel Blvd. Ownership: • Mixed Use Development:22• Office:Specialty Grocer:35,1S7 sf Limited-Service Restaurant:14,611 sf Full-Service Restaurant:39,269 sf • • rooms Jobs Generated:265 Capital Investment:$127.9 M Zoning Application:Parking Spaces:1,02S(approx.) Expected Opening Date:03 2027 City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement EXHIBIT C SITE PLAN �, 1 102 •� .� /) a •• 'J� IfGfW I� I• c-104 I� Was � r-/ cm SJ2e HD.SA�b�s _ WIE City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement EXHIBIT D PUBLIC IMPROVEMENT PROJECT COSTS [projects and project costs to be added by the Parties and completed prior to execution] 1. TIRZ PUBLIC IMPROVEMENT PROJECT COSTS This Exhibit D-1 identifies the Public Improvement Project Costs associated with the Development that are eligible for payment or reimbursement from TIRZ Revenues in accordance with the Agreement,the TIRZ Project and Finance Plan,and the TIRZ Reimbursement Agreement.Amounts listed below are estimates unless and until finally approved by the City in accordance with the Agreement and Applicable Law. A. Summary of TIRZ-Eligible Public Improvement Project Costs Improvement/ Location/ Funding No. project Limits Cost Category Estimated Cost Source/ Notes Status Water line W. Insert LF, Kirkwood engineer to 12 inn.) 1 .) (8 in. Blvd. Water utility $ estimate,and to frontage permit reference Water line SH 114 Insert LF, 2 oversizing(8 in. Frontage Water utility $ engineer to 12 in.) Road estimate,and permit reference Include Kirkwood Property sidewalks, Boulevard frontage/ hardscape, 3 public internal Street/roadway $ landscaping,and improvements alignment signal-related items only if eligible Kirkwood Include Blvd.and ROW/easement 4 Traffic signal N.White Traffic/signal $ acquisition if Chapel eligible and Blvd. approved Sanitary sewer On-site/off- Identify 5 public site as Wastewater utility $ permit/easement improvements applicable status Exclude Storm drainage On-site/off- privately /detention lica maintained 6 public site isbl as Drainage $ detention unless improvements appe expressly approved Parks,trails, As shown Identify public open space,and on access easement public Approved Public amenity $ and maintenance amenities Plans responsibility Professional/ Project- Only eligible 8 soft costs wide Engineering legaUadministration $ costs under TIRZ Act and City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement Project and Finance Plan Other approved 9 public [insert] [insert] $ [insert] improvement Subtotal Eligible Public Improvement Project Costs $ [insert] [insert] Less:Costs Funded by PID Bonds/Assessments or Other Non-TIRZ $ [insert] [insert] Sources Net Amount Requested for TIRZ Reimbursement $ [insert] [insert] In addition to the foregoing summary, the Project and Finance Plan for the TIRZ shall include a category for the Chapter 380 Incentive Grants provided in this Agreement. B. Certification/Approval Developer certifies that the costs submitted in this Exhibit D-1 are true and correct, were incurred for Public Improvements associated with the Development, have not been previously reimbursed from another source unless disclosed above,and are eligible for payment or reimbursement only to the extent approved by the City and available under the Agreement,the TIRZ Project and Finance Plan,and Applicable Law. Notes: This template is intended to conform to the final TIRZ Project and Finance Plan, TIRZ Reimbursement Agreement,and final City-approved cost categories.The City's reimbursement obligation is limited by the Agreement, available TIRZ Revenues,and all applicable approvals. 2. SERVICE AND ASSESSMENT PLAN - (PID) PUBLIC IMPROVEMENTS AND COSTS Exhibit D-2—information to be added as it relates to the PID public improvements. [projects and project costs to be added by the Parties] The projects listed above and their costs are estimates and final projects and costs of the Public Improvements shall be as set forth in the applicable SAP and/or the TIRZ Project and Finance Plan, or as finally determined by the City in compliance with Applicable Law. City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement EXHIBIT E KIRKWOOD BOULEVARD � I ----------- —=f-77 ......e..a.._. i- 111 I NORTH ROW � PF"� PROP— — �nav w..r—POP RO✓r''� ` E%ROW ROW — GRAPHIC SCALE IN FEET 125 250 500 t000'R INSET A SEE THIS SHEET PNaP Now PNOPROw g — LEGEND 1 � PROP ROW a PROP ROW J� 'sr ROW PR" Pfsov Plm sicw�H=nn PROP ROYI f PF40P RkW , - — yal TL"4 LANE �, I PROP Sow - � � — Lam__ -J � I. I E%ROW I I-IIIIIUII I I- 14i E%ROW �J�T77�'�1�V '�`rf] IUiniiiPTlffl 11iLliiT f hn IL PROPNT TLRN L0.UNE F� EN ROW 1�-PReP Rcn INSET PUBLIC PAVING EXHIBIT Kimiey�Hom City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement EXHIBIT F WATER PLAN III I C ECT TO EX Ir WATER ---- ----_------ I I I I I I I PUBLIC B•WATER I \ Lx 14^WATER GRAPHIC SCALE IN FEET 0 125 250 50C PUBLIC 1Y WATER c KIRKW04D BLVD \` I co �, \tjlj nnLCT ToI PualIs a•WATER Fx 13•wares 9 m .. Ah•Y..�.pCg3� 1r1 �� PUBLICB•WATER I Iw \� 1= �L LU l� ti �ti, I PUBLIC e^WATER Pueuc 9"WATER ' � V WATER PLAN Kimky*Hom City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement EXHIBIT G SEWER PLAN ' r----='------------- T-. C8 - RIBLIG B"SEWEF � I I GRAPHIC SCALE IN FEET 1 1 0 125 250 500 KIRKWOOD BLVD — PUBLICT SEWER 1 \ � I i m WIC PUBLIC r sE d \ : G 1Pq�� x a � :.�'�4{II'llll'llll�ll'llll'llll'I i SANITARY ---_—_� SEWER PLAN IGmIey*Horn [off-site sanitary sewer to be added by the parties] The offsite sanitary sewer for this Development is being provided through the future residential phase of the Development within Lot 1, Block B (the southernmost residential portion of the Development). City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement EXHIBIT H DRAINAGE/STORM PLAN 1 STORM STORM STDRI; PllwcL - p56 _STORM _ I PUBLID30 I GRAPHIC SCALE IN FEET r STORM w o its 250 saa Q PT STORMS —I STORM �pOBLIG 2�'STORM PUBLIC 59• \ yip KIRKWIDOD BLVD PlIBL5IcM R1 II D PON"ON` PONDD ------ \ pJ0✓ -3 �[' \\ PIIRLIG 38" PUBLIC 21" ' �'•.. ST➢RM STORM I J PUBUGtT—� IW l VVV p6 SIORM a W �- sa•sroRM HH{H{HHh�tN h&I I I I.If . SIORM^�' ----�1 _ STORM PLAN Kimley*Hom City of Southlake/Trademark Retail Holdings,LLC Master Development Agreement