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Cimmarron Acres (Lot 13, Block 3R), 2006 - Contract of Sale . cc ~h.2f~. ~ '"2 GkSOv1 f( Lo-r, t;=:J Y<t..LJ e , , * 2626 Howell Street, 10th Floor Dallas, TX 75204 Main (214) 855-8888 Fax (214) 855-8898 Direct Dial (214) 754-7708 lwilliams@republictitle.com REPUBLIC TITLE March 1, 2006 VIA U. S. MAIL Mr. Greg Last City of Southlake 1400 Main Street, Suite 460 Southlake, Texas 76092 Re: Our GF # Contract of Sale (the "Contract") by and between The City of Southlake, Texas ("Seller") and Pearson-1709, Ltd. ("Purchaser") - Approximately 2.232 acres of land at the northeast comer ofFM 1709 and Pearson Lane, City of Southlake, Tarrant County, Texas (the "Property") Dear Mr. Last: Pursuant to the closing and funding of the above referenced transaction, enclosed please find the following documents for your records: 1. Certified copy of Seller's Statement; 2. Certified copy of Pearson Land Sale- Commitment Agreement; 3. Certified copy of Special Warranty Deed; 4. Duplicate original of Assignment of Contract of Sale; 5. Copy of Affidavit as to Debts and Liens and Parties in Possession (Entity Owner). We appreciate the opportunity to be of service to you in this transaction. Please do not hesitate to contact our office if we can be of further assistance to you in this or any future matter. Sincerely, ~W;1)4.- Linda Williams Vice President LW/as cc: Tim Sralla (w/enclosures via mail) REPUBLIC TITlE OF TEXAS, INC. A SUBSIDARY OF First Americall Title Illsurallce CompallY ~ TITLE INSURANCE AGENT FOR: Chicago Title Insurance Company, Commonwealth Land Title Insurance Company, First American Title Insurance Company, Lawyers Title Insurance Corporation, Old Republic National Title Insurance Company and Ticor Title Insurance Company .. * REPUBLIC TITLE OF TEXAS, INC. SELLER'S STATEMENT SALE FROM: SALE TO: PROPERTY: CITY OF SOUTHLAKE PEARSON-1709, LTD. Lot 13, Block 3R, Cimmarron Acres Addition, City of Southlake, Tarrant County, Texas We J~.ertlfy that this is a true and cor",' copy of the original hereof. REf'UBLlC TIT~E OF TEXAS INC a.., 'A .' BY: ~. ~~, GF NO: SALES PRICE: $ 1,114,806.00 $ $ $ $ $ $ TOTAL REIMBURSEMENTS/CREDITS GROSS AMOUNT DUE TO SELLER $ $ $ $ $ $ $ ~_~_~2._ $ $ $ $ $ $ $ $ - -- - -- --,.. -------- $ $ $ $ $ $ TOTAL CHARGES AND DEDUCTIONS NET AMOUNT DUE TO SELLER REIMBURSEMENTS/CREDITS LESS CHARGES AND DEDUCTIONS Fees to the Title Company: Escrow Fee DISCLOSURE REQUIRED BY ARTICLE 9.53, INSURANCE CODE. 1,096.93 TO STEWART TITLE GUARANTY COMPM~Y 6,215.92 TO REPUBLIC TITLE OF TEXAS, INC. DISCLOSURE INCLUDES TITLE PREMIUMS PAID BY ALL PARTIES. Tax Service to : DATA TRACE INFORMATION SERVICES $ .00 $ 1,114,806.00 250.00 $ $ 312 . 3 5 1,114,493.65 Seller understands the Closing or Es(J'ow Agent has assembled this information representing the transaction from the best information available from other sources and cannot guarantee the accuracy thereof. Any real estate agent or lendt:r in,'olved may be furnished a copy of this Statement. Seller understands that tax and insurance prorations and reserves were based on figurt:s for the preceding }'e~r or supplied by others, or estimates for current year, and in the e.ent of any change for current year, all necessary adjustments must lle made between Purchaser and Seller direct. The undersigned hereby authorizes Closing or Escrow Agent to make expenditures and disbursements as shown above and appro.'es same for pa}'ment. The undersigned also acknowledges receipt of Loan lounds, if applicable, in the amount shown abow and receipt of a COP}' of this Statement. SEE SIGNATURE ADDENDUM ATTACHED. CLO ADDRESS *Note: Interest on existing liens is figured to the date indicated. If not paid by then, additional interest will have to be your statement will be adjusted to haw sufficient fun<lis to secure release from the lienholder. TC}l./l'5 [;e~:. cf r1l5vrarc~ fcrm tic. T-F.2 C/I.TE: C2!28/2CC6 TIME: 1:15 PH " SIGNATURE ADDENDUM TO SELLER'S CLOSING STATEMENT GF NO. CITY OF SOUTHLAKE, a municipal corporation B~~r > Retur~ to: I J'f-o 'JS b:. < J Republic Title of Texas, Inc. We certify that this is a true and 2626 Howell Street, 10th Floor correct copy of the original hereof. Dallas TX 75204 REPUBI.,tC TITLE Of TEXAS, INC. 0$ {Ld-01'--\l\- South lake, T~s ~12~ Pearson Land Sale - Commitment Agreement This Commitment Agreement (this "Agreement") is made and entered into by and between the City of South lake, Texas (the "City"), and Pearson - 1709, Ltd., (the "Developer"), collectively represented below as the "Parties". WIT N E SSE T H: WHEREAS, the City and the Developer desire to memorialize commitments made during the process of purchasing the Property (as defined below); and WHEREAS, the City and the Developer desire for these commitments to survive the closing and transfer of ownership of the Property; NOW, THEREFORE, in consideration of the mutual benefits contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows: 1. Definitions The following definitions shall apply to the terms used in this Agreement: "Property" means, the 2.326 acres at the northeast corner of FM 1709 and Pearson Lane in Southlake, Texas, platted as Lot 13, Block 3R, Cimmarron Acres Addition, recorded in Cabinet 'A', Slide # 10554, Plat Records, Tarrant County, Texas. 2. City Commitments If the Developer elects to purchase the property and proceed with development, the City will not require the developer to bear the cost of burying utilities or enclosing existing drainage ways on the property, except for those specific drainage facilities and improvements shown on the approved concept plan as shown in Exhibit 'A', specifically, a covered drainage channel underneath the driveway access to the property from Pearson Lane. 3. Developer Commitments A. Architectural Representation: The Developer commits that upon preparation and submittal of documents required for Site Plan approval by the City, the architectural features of the proposed retail buildings shall be in substantial conformance with the representation depicted in Exhibit 'B'. B. Landscape Plan: The Developer commits that upon preparation and submittal of documents required for Site Plan approval by the City, the landscape plan for proposed development on the Property shall be in substantial conformance with the representation depicted in Exhibit 'C'. Southlake, Texas - Pearson Land Sale - Commitment Agreement - February 28,2006 - Page 1 of 8 " 4. Developer Non-Compliance Should the Developer desire to submit a Concept Plan and/or Site Plan that is not in substantial conformance with the Concept Plan depicted in Exhibit 'B', the Developer agrees to follow all City requirements with regard to submittal and processing of a revised Concept Plan and/or Site Plan. This shall include revised architectural representations and landscape plans in accordance with all relevant City development codes and will generally incorporate design elements as shown in Exhibits 'B' and 'C' herein. The Developer understands that a high level of scrutiny should be anticipated with regard to any changed development plans on the Property due to the geographic importance of this site as a westernmost entry into the City. 5. Covenants Running with the land The Developer's covenants, restrictions, burdens, and charges set forth in this Agreement shall exist at all times as long as this Agreement is in effect, and shall be covenants running with the land, binding upon all parties having any right, title or interest in any portion of all the Property. Developer agrees that the City may file a copy of this Agreement in the deed records of Tarrant County, Texas, for the purpose of providing notice regarding these covenants. 6. Miscellaneous Matters a. Section or Other Headings. Section or other headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. b. Attorneys Fees. The prevailing party in the adjudication of any proceeding relating to this Agreement shall be authorized to recover its reasonable and necessary attorney's fees pursuant to Section 271.159 of the Texas Local Government Code. c. Entire Agreement. This Agreement contains the entire agreement between the parties. d. Amendment. This Agreement may only be amended, altered, or revoked by written instrument signed by the Developer and the City. e. Successors and Assigns. This Agreement shall be binding on and inure to the benefit of the parties, their respective successors and assigns. The Developer may assign all or part of its rights and obligations hereunder (a) to any Developer Affiliate effective upon written notice to the City, or (b) to any Person other than a Developer Affiliate with the prior written approval of the City. f. Interpretation. Regardless of the actual drafter of this Agreement, this Agreement shall, in the event of any dispute over its meaning or application, be interpreted fairly and reasonably, and neither more strongly for or against any party. South lake, Texas - Pearson Land Sale - Commitment Agreement - February 28, 2006 - Page 2 of 8 g. Applicable Law and Venue. This Agreement is made, and shall be construed and interpreted under the laws of the State of Texas and is fully performable in Tarrant County, Texas, and venue of any dispute relating to this Agreement shall lie in Tarrant County, Texas. h. Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be considered an original, but all of which shall constitute one instrument. REMAINDER OF PAGE LEFT BLANK Southlake, Texas - Pearson Land Sale - Commitment Agreement - February 28, 2006 - Page 3 of 8 Exhibit 'A' Approved Concept Plan Southlake, Texas - Pearson Land Sale - Commitment Agreement - February 28, 2006 - Page 4 of 8 r'..r,\ )~.s; . ~~~ \,l7~r~~' f; ~ ~l':)\.. ...,/ ...."'P"tT~~-J.'i", ;-""" ~.\.-(?......... ~ ( ~n1:ci -., ..\r--.... ~f..r...:;i..~ ~;-;~::;lfr tJ ",-'i ;1 Exhibit "B' Architectural Representation :woS~c:riti-;~ .----' TEItIA.cotTA'fILE.OOF --- ....r- IUCJ( /,,/. ~ ~AK'.nuWJ'ATnItN // "./,,- cort!kstUNGltAWHlJIo'e .,/ ,,/ ../' // // /'''''' .lUrx COUll ,./ /. ,/,-'nxJU.~A11U ...OS'UCnLE,MEDAtUON'....... ealcx(.'OA"U r--- ..IIIIC."""'" i j---^ MDSAlCTUfMWIlUJON ! S(.J.lflW""'~ South lake, Texas - Pearson Land Sale - Commitment Agreement - February 28,2006 - Page 5 of 8 "~', A..Ct:D.'TcotntSEOI'UCKT COlOR mam.AlNnl.f. Exhibit "e' Landscape Plan (j;:;'; w , z ! :) ffi i z~ ! 0> ! (/)" ' 0:: 0 ,i <( '" ! w [L \ \ 1 ii' "\ t i i! ! i Ii i! , i i 1 .1 CITY OF SOUTHLAKE ZONED CS LUD - PUBLIC \, FM 17091 WEST SOUTHLAKE BLVD. ROW VARIES P'UIffLM8Ql =~.- 1'LIlJITU5T~lIkII:l/IIMlIIINf) -- -- ..... I ..__..____.._.._"r ------- , ---.---...-- --.......---- '. ....-.----.-.-..-.... -...-.....-....- ~ --..--.---. -.------- ---------..- ... __R___'___ '- --------- -----.---..--- --,... ------- ....... __U_,"__"'__ t. 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"'-"'--'-.-.- -...---- -.-...- ----- -....--- --.....--.- i::== --.-.... ------- ---...---.. , -----..---.. --"~_._--- .. ---..----...- -..-.....-....---.- --,---- . --...-------. -.....-....---.'""-.. .. -.-......-..--....-- -.--"'-'--."-" .. _..._---.:;-- --,--- .. .----.--.... --....--...--..- ---,--,-"" -.-.. -..----...--.- . ""--....-.----.-. ---.......- ... ---..---....-"'" ---......-.,--- ---------.-- .c____....._..._ -'---..---"- Southlake, Texas - Pearson Land Sale - Commitment Agreement - February 28, 2006 - Page 6 of 8 ~, II ~ Q.~ '" >< ~ '" ~: = cOc !9t38 Q) " 0::: -- - c: .:g E C:<lii o >.i- ~~~ co::>" CDcn~ " c:::> u....!? 0 <~ .0 Cl,., Q)~ :It) .!!l f~t~ 1-O,N~I'EJILlH L 1.01 ATTEST: ~'O~ CITY SECRETARY THE CITY OF SOUTH LAKE BY-~~ . An rew a sganss, Mayor ",Utl""11 \\\' UTH I", \\ <:,0 I ~ " .......... ~ ........~Jf:: "~ ~ 0 .... ....~ ~ s~: * ..""'~ ::1--:, \t't\: --.. .~- :1'\. . : - . . - ; ~. .:(J-)j -:. e.. .._ ~ --:'" ........... .......... I,... ..' "" ....-** \\\\ "'''~~VELOPER ----- By: South lake, Texas - Pearson Land Sale - Commitment Agreement - February 28,2006 - Page 7 of 8 THE CITY OF SOUTH LAKE By: Andrew Wambsganss, Mayor ATTEST: CITY SECRETARY DEVELOPER PEARSON-1709, LTD., a Texas limited partnership By: Hopkins Retail, Inc., a Texas Corporation, General Partner By: Southlake, Texas - Pearson land Sale - Commitment Agreement - February 22, 2006 - Page 7 of 8 THE STATE OF TEXAS ~ ~ COUNTY OF TARRANT ~ BEFORE ME, the undersigned authority, on this day personally appeared Andrew Wambsganss, Mayor of the CITY OF SOUTHLAKE, a municipal corporation, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he was duly authorized to perform the same by appropriate resolution of the City Council of the City of South lake and that he executed the same as the act of the said City for the purposes and consideration therein expressed and in the capacity therein stated. 1Q-Ht AND SEAL OF OFFICE this UJ day of ___~VEN UNDER MY HAND . rv..a.ry , 2006. THE STATE OF TEXAS ~ ~ COUNTY OF ~ kiO-~ Notary Public in an for the State of Texas Lo rl' A. F; n.-ue (I Notary's Printed Name My Commission Expires: JOIJ.1/0cr f I BEFORE ME, the undersigned authority, on this day personally appeared , known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that said instrument was signed on behalf of said and said acknowledged said instrument to be his free act and deed. GIVEN UNDER MY HAND AND SEAL OF OFFICE in said County and State this day of , 2006. Notary Public in and for the State of Texas Notary's Printed Name My Commission Expires: South lake, Texas - Pearson Land Sale - Commitment Agreement - February 28, 2006 - Page 8 of 8 THE STATE OF TEXAS ~ ~ COUNTY OF TARRANT ~ BEFORE ME, the undersigned authority, on this day personally appeared Andrew Wambsganss, Mayor of the CITY OF SOUTH LAKE, a municipal c9rporation, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he was duly authorized to perform the same by appropriate resolution of the City Council of the City of Southlake and that he executed the same as the act of the said City for the purposes and consideration therein expressed and in the capacity therein stated. GIVEN UNDER MY HAND AND SEAL OF OFFICE this ,2006. day of Notary Public in and for the State of Texas Notary's Printed Name My Commission Expires: THE STATE OF TEXAS COUNTY OF ~ ~ ~ ~ BEFORE ME, the undersigned authority, on this day personally appeared Michael J. Hopkins, President of HOPKINS RETAIL, INC., a Texas corporation, General Partner of PEARSON - 1709, LTD., a Texas limited partnership, known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that said instrument was signed on behalf of said PEARSON - 1709, LTD. and in the capacity therein stated. rw.k. GIVEN UNDER MY. HAND AND SEAL OF OFFICE in said County and State this 2.r,'-- day of February, 2006. W . WJJl4- I Notary Public in and for the State of Texas /~~~::~~;;~"" LINDA WILLIAMS ":i!- . ("'1-:' ~ . ( '*) . ~ Notary Public, State of Texas '"~,,,"J'/ My Commission Exp. 12-15-2008 """",~,~""" Notary's Printed Name My Commission Expires: Southlake, Texas - Pearson Land Sale - Commitment Agreement - February 22, 2006 - Page 8 of 8 .. JI1l' Return to~ W(l./D '?f d-.'-\' Hepublic Title of Texas, Inc. 2626 Howell Street, 10th Roor [~~Ila<::. TX 75204 'U - c:f.;-(L )"01 4 AFTER RECORDING ~ETURN TO: We certify that this is a, ,.de and correct copy of the original hereof. REP{fLlC TITLE OF- TEXAS, INC. BY: J'\rL: A~ 2 Michaet'B :'Joh.tlson,-Esq, -WINSXE.AD- 12QLElm Street,.Sulte5400 Dallas;..Tex:as-7-5Z70 SPECIAL WARRANTY DEED STATE OF TEXAS S S KNOW ALL MEN BY THESE PRESENTS THAT: COUNTY OF TARRANT S Effective the d~ay of February, 2006, CITY OF SOUTHLAKE, a municipal corporation ("Grantor"), for and in consideration of the sum of TEN AND NOll 00 DOLLARS ($10.00), and other good and valuable consideration paid by PEARSON - 1709, LTD., a Texas limited partnership ("Grantee"), the receipt and sufficiency of which are hereby acknowledged and confessed, subject to the exceptions, liens, encumbrances, terms and provisions hereinafter set forth and described, has GRANTED, BARGAINED, SOLD and CONVEYED, and by these presents does hereby GRANT, BARGAIN, SELL and CONVEY, unto Grantee all that certain lot, tract or parcel of land situated in Tarrant County, Texas, and being more particularly described in Exhibit "A" attached hereto and incorporated herein by reference for all purposes. TOGETHER WITH, all and singular, the rights, benefits, privileges, easements, tenements, hereditaments, appurtenances and interests thereon or in anywise appertaining thereto and with all improvements located thereon (said land, rights, benefits, privileges, easements, tenements, hereditaments, appurtenances, improvements and interests being hereinafter referred to as the "Property"). For the same consideration recited above, Grantor hereby BARGAINS, SELLS and TRANSFERS, without warranty, express or implied, all interest, if any, of Grantor in (i) strips or gores, if any, between the Property and abutting or immediately adjacent properties, and (ii) any land lying in or under the bed of any street, alley, road or right-of-way, opened or proposed, abutting or immediately adjacent to the Property. This conveyance is made subject and subordinate to the encumbrances and exceptions ("Permitted Exceptions") filed of record, and to the document entitled Pearson Land Sale - Commitment Agreement to be filed of even date herewith, but only to the extent the Permitted Exceptions affect or relate to the Property. TO HAVE AND TO HOLD the Property, subject to the Permitted Exceptions as aforesaid, unto Grantee, and Grantee's successors and assigns, forever; and Grantor does hereby bind Grantor, and Grantor's heirs, executors, administrators, personal representatives, successors and assigns, to WARRANT and FOREVER DEFEND, all and singular, the Property, subject to the Permitted Exceptions, unto Grantee, and Grantee's successors and assigns, against every SPECIAL WARRANTY DEED - Page 1 6813-68/Southlake Purchase person whomsoever lawfully claiming or to claim the same or any part thereof by, through or under Grantor, but not otherwise. EXECUTED to be effective as of the date first set forth above. GRANTOR: CITY OF SOUTHLAKE, a municipal corporation ~- B~ ) Name: A~drew Wambsganss Title: Mayor .:=- ~ STATE OF TEXAS S S COUNTY OF TARRANT S This instrument was ACKNOWLEDGED before me, on the dff!: day of February, 2006, by ANDREW W AMBSGANSS, Mayor of the CITY OF SOUTHLAKE, a municipal corporation, on behalf of the City, and acknowledged that he was duly authorized to perform the same by appropriate resolution of the City Council of the City of Southlake and that he executed the same as the act of the said City for purposes and consideration therein expressed and in the capacity therein stated. 10 /~7/o'1 I I k' a ~,eQ(J Notary Public, State of Texas Lo r.' ,A. Firwe (( [S E A L] My Commission Expires: SPECIAL WARRANTY DEED - Page 2 6813-68/Southlake Purchase EXHIBIT "A" PROPERTY DESCRIPTION Being a 101,346 square feet or 2.3265 acre tract of land situated in the Jesse G. Allen Survey, Abstract No. 180, City of Southlake, Tarrant County, Texas, said tract being all of Lot 13, Block 3R of Cimmarron Acres Addition, an addition to the City of Southlake, Tarrant County, Texas, according to the plat revision thereof recorded in Cabinet A, Slide 10554, Plat Records of Tarrant County, Texas, said tract conveyed to City of Southlake by deed recorded in Volume 12350, Page 1588, Deed Records of Tarrant County, Texas, and being more particularly described as follows: BEGINNING at a set 5/8 inch iron rod for a corner at the intersection of the north line of West Southlake Boulevard (a 134 feet right of way) with the east line of Pearson Lane (a variable width right of way), said point being the southwest corner of said Lot 13; THENCE, the following courses and distances with the east line of Pearson Lane: - North 45 degrees 17 minutes 31 seconds West, a distance of 28.25 feet to a found 5/8 inch iron rod for a corner; - North 00 degrees 04 minutes 29 seconds East, a distance of 173.12 feet to a found 5/8 inch iron rod for a corner; - North 10 degrees 58 minutes 51 seconds West, a distance of78.22 feet to a found 5/8 inch iron rod for a corner in the existing east line of Pearson Lane, said point being the common west comer of said Lot 13 and Lot 12, Block 3R of the said Cimmarron Acres Addition; THENCE, North 89 degrees 38 minutes 11 seconds East, departing the east line of Pearson Lane and with the common line of said Lot 13 and Lot 12, passing at a distance of 229.63 feet the common south comer of said Lot 13 and Lot 11, Block 3R of the said Cimmarron Acres Addition, continuing in all a distance of 387.93 feet to a found 5/8 inch iron rod for a corner, said point being the common north corner of said Lot 13 and Lot 5R6, Block 3 of Cimmarron Acres Addition as recorded in Cabinet A, Slide 3321, Plat Records of Tarrant County, Texas; THENCE, South 00 degrees 21 minutes, 49 seconds East, with the common line of said Lot 13 and Lot 5R6, a distance of 270.00 feet- to .a found "x" on concrete pavement for a comer in the north line of West Southlake Boulevard;" said point being the common south comer of said Lot 13 and Lot 5R6; THENCE, South 89 degrees 38 minutes 11 seconds West, with the north line of West Southlake Boulevard, a distance of 354.90 feet to the Point of Beginning. Dallas_1\4349948\ I 68 I 3-68 2/23/2006 EXHIBIT "A", Legal Description - Cover Page 6813-84/68/Southlake Purchase ....... 11> .... ASSIGNMENT OF CONTRACT OF SALE This Assignment of Commercial Contract of Sale (the"Assignment") is made as of ~ FebruarYA8 , 2006, by and between HOPKINS COMMERCIAL REAL ESTATE, INe. (hereinafter referred to as "Assignor") and PEARSON-1709, LTD. (hereinafter referred to as "Assignee"). WITNESSETH: WHEREAS, Assignor entered into a certain Commercial Contract of Sale (the "Contract"), by and between Assignor, as the Purchaser and the City of Southlake, as the Seller (the "Seller"), relative to the purchase and sale of that parcel of real property (the "Property") located in the County of Tarrant, State of Texas, and being more particularly described on Exhibit "A" attached hereto and made a part hereof for all purposes; and WHEREAS, the Assignor desires to assign to the Assignee all of its rights, title and interest in and to the Contract, and the Assignee desires to acquire the interest of the Assignor in and to the Contract and assume all obligations of Assignor under the Contract. NOW, THEREFORE, in consideration of the premises described above, and for $10.00 and other good and valuable consideration paid by Assignee to Assignor, the receipt and sufficiency of which are hereby acknowledged by Assignor, the parties agree as follows: I. Assignor does hereby assign, transfer and convey to the Assignee all of its rights, title and interest in and to the Contract. 2. The Assignee hereby accepts such assignment and assumes all duties, obligations and benefits ofthe Assignor under the Contract and agrees to be bound thereby. 3. This Assignment may be executed in multiple counterparts which, when taken together, shall constitute a single integrated instrument. Facsimile signatures shall be accepted as originals for purposes of this Assignment. Assignment of Contract Page 1 of2 ..~ .. IN WITNESS WHEREOF, Assignor and Assignee have executed this Assignment effective as ofthe day and year noted above. ASSIGNOR: HOPKINS COMMERCIAL REAL ESTATE, INC., a Texas corporation By: ASSIGNEE: PEARSON-1709, LTD., a Texas limited partnership By: Hopkins Retail, Inc., a Texas Corporation, General Partner By: Assignment of Contract Page 2 of2 AFFIDAVIT AS TO DEBTS AND LIENS AND PARTIES IN POSSESSION (ENTITY OWNER) GF#: 05R20144 WRO SUBJECT PROPERTY: Lot 13, Block 3R, CIMMARRON ACRES ADDITION, City of South lake, Tarrant County, Texas, and being more fully described in the title commitment for the referenced GF#. OWNER: CITY OF SOUTHLAKE SALE TO OR LOAN FROM: PEARSON-1709, LTD. THE STATE OF TEXAS COUNTY OF TARRANT . f } BEFORE ME, the undersigned authority, on this day personally appeared the undersigned Affiant, personally known to me to be the person whose name is subscribed hereto and upon oath deposes and says that: 1. To the best knowledge and belief of Affiant: a. The charges for all labor and materials that may have been furnished to the property or to the improvements thereon have been fully paid. b. All contracts for the furnishing of labor or materials to the property or for improvements thereon have been completed and fully paid. c. There are no security agreements or leases affecting any goods or chattels that have become attached, or that will at any later date become attached, to the property or improvements thereon as fixtures that have not been fully performed and satisfied, which are not shown on the referenced title commitment. d. There are no loans of any kind on the property, which are not shown on the referenced title commitment. e. There are no brokers that have a signed commission agreement with Owner under which a commission is claimed or earned and has not been paid, which are not shown on the settlement statements. 2. Affiant has no knowledge of a notice of change of use nor has Owner received a notice of change of use by the appraisal district. 3. The property is currently being used for the following purposes, and to the best knowledge and belief of Affiant, the improvements, if any, and such use does not violate any restrictive covenants affecting the property: Raw Land. 4. There are no proceedings involving Owner, or notice to Owner of any proceedings, by any agency or authority, public or private, that levies taxes or assessments, which may result in taxes or assessments affecting the property and which are not shown by the referenced title commitment. 5. There are no Judgments, Federal Tax Liens, or State Tax Liens against Owner and/or the property; Owner is not indebted to the State of Texas for any penalties or wages pursuant to a fmal order of the Texas Work Force Commission; and neither Owner nor the Property is subject to a claim under the Medicaid Estate Recovery Program. 6. (a) All ad valorem and personal property taxes (if any), all "use" type business taxes (if any), including but not limited to hotel use and occupancy taxes, and all association! maintenance type taxes or assessments (if any) that are currently due and payable have been paid or will be paid at closing and are shown on the settlement statements. (b) Any of the above referenced taxes which are the obligation of Owner and which have been prorated on the settlement statements are based on information approved by Owner. 7. Owner is the only occupant of the property, except (list any leases): NI A. 8. There are no unrecorded contracts; deeds; mortgages; mechanic's liens; options of any kind, including but not limited to options to purchase or lease; rights of first refusal or requirements of prior approval of a future purchaser or occupant; rights of reentry; rights of reverter; or rights of forfeiture affecting the property or improvements thereon, which are not shown on the referenced title commitment, except the Pearson Land Sale - COlmnitment Agreement to be executed and recorded at closing. 9. No proceedings in bankruptcy or receivership have ever been instituted by or against Owner, and Owner has never made an assignment for the benefit of creditors. 10. The property has curb cut( s) and driveway( s) providing actual vehicular and pedestrian access to West Southlake Boulevard a~, which isM open and in use. . /<4.V TT THIS affidavit is made to the Purchaser and/or Lender and to Republic Title of Texas, Inc., as an inducement to them to complete the above referenced transaction, and Affiant realizes that said Purchaser and/or Lender and Republic Title of Texas, Inc., are relying upon the representations contained herein; and Affiant does hereby swear under the penalties of perjury that the foregoing information is true and correct in all respects, to the best knowledge and belief of Affiant, and that Affiant is authorized to make this affidavit on behalf of Owner. EXECUTED effective as ofFebruary2~, 2006. /\ ~ Andy Wambsganss, Mayor of the City of Southlake ~ - ---~-----~ THE STATE OF TEXAS COUNTY OF TARRANT ( SWORN TO AND SUBSCRIBED BEFORE ME on the 2..gf"ly of February, 2006, by ANDY W AMBSGANSS, Mayor of the Ci.'Y of Soulhlake, in the capacily therein Sla~ "'-!'IIEL ~ . a #:9'-~..''''''~, Notary Public, State of Texas A - r( ~ "'.' \lit '. I h' .'lO f '1\:/" ' 'e- ..... Notary's printed name: .or," . Zll~ ~ ~ /; ~t \ My commission expires: 10/1-7/0'1 ~ O~ 0 I j I J ~.-.I". "'~~. ~ .... ",,,,0 ... ~ .... ...:;..~ ~~.,:~ 2