HomeMy WebLinkAboutOrdinance No. 2016-01 (Title: An ordinance,changing the prior zoning classification of a tract of land consisting of
approximately .981 acres, also known as Lots 1, 2 and 3 in Winding Hollow Subdivision,
being a replat of apart of Lot 1,Block 6, Friendswood Subdivision, in the Sarah McKissick
or J.R. Williams League, according to the map of record in Volume 238, Page 14, in the
office of the County Clerk of Galveston County, Texas, from Planned Unit Development
(PUD)/Specific Use Permits, as referenced in prior Ordinance No's. 2000-38, 2005-37,2011-
11 and 2013-41, to a :new Planned Unit Development (PUD), as more fully described
herein.)
ORDINANCE NO. 2016-01
AN ORDINANCE AMENDING APPENDIX '`C" "ZONING",
OF THE CODE "OF ORDINANCES OF THE CITY OF
FRIENDSWOOD;'TEXAS, BY AMENDING THE ZONING
CLASSIFICATION FOR THE PROPERTY GENERALLY
LOCATED AT 103, 105 AND 107 SHADWELL LANE, A
TRACT OF LAND CONSISTING OF APPROXIMATELY
.981 'ACRES, ALSO KNOWN AS LOTS 1, 2 AND 3 IN
WINDING HOLLOW SUBDIVISION, BEING A REPLAT
OF A PART OF LOT 1, BLOCK 6, FRIENDSWOOD
SUBDIVISION, IN THE SARAH McKISSICK OR J.R.
WILLIAMS LEAGE, MORE FULLY DESCRIBED IN
EXHIBIT"A", INCORPORATED BY REFERENCE, FROM
THE PRIOR DESIGNATION OF PLANNED UNIT
DEVELOPMENT (PUD)/SPECIFIC USE PERMITS, AS
REFERENCED IN PRIOR ORDINANCE NO'S. 2000-38,
2005-37,20,11-11 AND 2013-41, TO A NEW PLANNED UNIT
DEVELOPMENT (PUD), PURSUANT TO THE ATTACHED
SITE PLAN INCLUDED IN EXHIBIT "B", ALL AS MORE
SPECIFICALLY PROVIDED HEREIN; PROVIDING FOR
THE AMENDMENT OF THE OFFICIAL ZONING MAP;
PROVIDING A PENALTY IN AN AMOUNT NOT TO
EXCEED $2,000 FOR EACH DAY OF VIOLATION OF ANY
PROVISION HEREOF; AND PROVIDING FOR
SEVERABILITY.
WHEREAS, !Johnson Five :Holdings, LLC, (the "Owner") owner of real property
generally located at'103, 105;and 107-Shadwell Lane within the City, same now consisting of a
tract of land measuring approximately .981 acres in the Sarah McKissick or J.R. Williams
League, according.to the map.ofe record:in Volume 238, Page 14, in the office of the County
Clerk of Galveston County, Texas, more specifically described in Exhibit "A", including a
Warranty Deed, plat, location map, zoning and aerial map, (the "Property"), has filed an
application to rezone the property included in prior Ordinance No's. 2000-38, 2005-37, 2011-11
and 2013-41, from a Planned Unit Development (PUD)/Specific Use Permits to a new Planned
Unit Development (PUD), for the Property identified herein pursuant to the site plan and related
documents attached hereto in Exhibit "B'; and
WHEREAS, the Planning and Zoning Commission and the City Council conducted a
joint public hearing to consider such application; and
WHEREAS, the hearing was duly called as provided by the laws of the State of Texas
and Appendix "C" of the Code of Ordinances of the City, ("Zoning Code"), and that in such
hearing all persons attending were allowed to be heard on the question of whether or not to
rezone the Property from a Planned Unit Development (PUD)/Specific Use Permits to a new
Planned Unit Development (PUD), as requested in the application and as further depicted in the
site plan and related documents included in Exhibit "B", to determine whether such rezoning
would affect the health, safety, convenience, or general welfare of the citizens of Friendswood,
and whether or not such change in zoning would violate the rights of any interested person; and
WHEREAS,pursuant to the Zoning Code, Section 7. "Schedule of District Regulations,"
J. "Planned Unit Development, General Purpose and Description," paragraph 7.c.1, Owner has
determined to submit a site plan at this time, (Option 1), for approval concurrent with the
approval of the requested PUD zone change; and
WHEREAS, the Planning and Zoning Commission has filed its written report with City
Council, which recommends Approval of the application for rezoning of the subject
Property; and
Ord 2016-01 2
WHEREAS, as a result of the said public hearing, the City Council hereby finds and
determines that the proposed change in zoning classification and the rezoning of the Property
would not be detrimental to the community, and is in conformance with the zoning ordinance;
now,therefore
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FRIENDSWOOD,
STATE OF TEXAS:
Section 1. The facts and matters set forth in the preamble of this Ordinance are
hereby found to be true and correct, it being expressly understood that the City Council of
Friendswood ("City Council') is relying upon the express representations of Owner appearing in
the documents submitted for final approval, (specifically including those documents in Exhibits
"A" and `B", and the representations made at the joint public hearing before the Planning and
Zoning Commission and City Council to induce approval of the rezoning made the subject of
this Ordinance.
Section 2. The Friendswood City Code, Appendix C, "Zoning," Section 3,
"Provision for Official Zoning Map," is hereby amended, rezoning the Property identified in the
attached Exhibit "A", from Planned Unit Development (PUD)/Specific Use Permits, as
referenced in prior Ordinance No's. 2000-38, 2005-37, 2011-11 and 2013-41, to a new Planned
Unit Development (PUD), for such purposes and conditions as set forth below and as depicted in
Exhibit `B," but otherwise consistent and subject to the current Zoning Code, and related
conditions contained herein.
Section 3. From and after the effective date of this ordinance, the new Planned Unit
Development (PUD) shall be subject to and limited to the following permissible uses:
NAICS Use# Use Description
236 Construction of Buildings—Office Use Only
238 Specialty Trade Contractors—Office Use Only
323113 Commercial Screen Printing
522 Credit Intermediation and Related Activities
531 Real Estate
541 Professional, Scientific and Technical Services
551 Management of Companies and Enterprises
561 Administrative and Support Services
61169 All Other Schools and Instruction
Ord 2016-01 3
621 Ambulatory Health Care Services
8121 Personal Care Services
8129 Other Personal Services
8139 Business, Professional, Labor, Political, and Similar Organizations
In addition, the new Planned Unit Development (PUD) shall be subject to the following
Regulation Matrix:
Lot Lot Width Lot Depth Front Rear Side Yard Height Maximum Lot
area Minimum Minimum Yard Yard Setbacks Maximum Coverage
Min. Feet Feet Setback Setback Feet
Sq ua re
Feet
13,500 96 150 25 20 0 40 30%
Section 4. From and after the effective date of this ordinance, the new Planned Unit
Development (PUD) shall further be subject to the following landscape, parldng and sidewalk
regulations:
a. Lots 1 and 2 shall be subject to landscape regulations contained in the City of
Friendswood Code of Ordinances, Appendix C, Section 8. "Supplementary District
Regulations." Lot 3 is subject to landscape regulations contained in the City of Friendswood
Code of Ordinances, Appendix C, Section 7.5. "Community Overlay District."
b. Parking shall be subject to the requirements of Appendix C of the City's Design
Criteria Manual entitled "Parking Group Table." It is acknowledged that Owner has entered into
a license agreement with the City to allow the construction and use of parking spaces within the
Shadwell Lane right-of-way.
C. Sidewalks shall not be required on Lots 1, 2 or 3 due to the fact that the on-street
parking spaces have been constructed where sidewalks would be located.
Section 5. The Official Zoning Map of the City of Friendswood shall be revised and
amended to show the designation of the Property, as described and as provided in Section 2
above, with the appropriate reference thereon to the number and effective date of this Ordinance,
and a brief description of the nature of the change.
. Section 6. This Ordinance shall in no manner amend, change, supplement or revise
any provision of any ordinance of the City of Friendswood, save and except the change in zoning
classification of said Property as conditioned and described above.
Ord 2016-0I 4
Section 7. In the event any section, paragraph, subdivision, clause, phrase, provision,
sentence, or part of this Ordinance or the application of the same to any person or circumstance
shall for any reason be adjudged invalid or held unconstitutional by a court of competent
jurisdiction, it shall not affect, impair, or invalidate this Ordinance as a whole or any part or
provision hereof other than the part declared to be invalid or unconstitutional; and the City
Council of the City of Friendswood, Texas, declares that it would have passed each and every
part of the same notwithstanding the omission of any and every part of the same,notwithstanding
the omission of any such part thus declared to be invalid or unconstitutional, or whether there be
one or more parts.
Section 8. Any person who shall willfully, intentionally, or with criminal negligence
violate any provision of this Ordinance shall be deemed guilty of a misdemeanor and upon
conviction thereof, shall be fined in an amount not to exceed $2,000.00. Each day of violation
shall constitute a separate offense.
PASSED AND APPROVED on first reading this 11th day of January,2016.
PASSED, APPROVED, and ADOPTED on second and final reading this lst day of
February, 2016.
,r , � N,
Kevin M. Hollan
Mayor
ATTEST:
,01.4.
�•• �I,ll�y ••♦
Melinda Welsh, TRMC O
City Secretary :74 d
OFT ,•
Ord 2016-01 5
Ord 2016-01
Exhibit A
Exhibit"A"
1. Application
2. Deed for 107 Shadwell Ln.
3. Deed for 103 and 105 Shadwell Ln.
4. Winding Hollow Plat
5. Aerial Map
6. Location Map
7. Zoning Map
City of Friendswood — Community Development
910 S.Friendswood Drive
Friendswood,TX 77546
Phone:281-996-3201 Fax:281-996-3260
ww.ci.frie ndswood.tx.us
Zone Change Application
CURRENT ZONE OF PROPERTY�S P
TYPE OF ZONE CHANGE(check one):
❑Land Use Change to Zone: ❑Specific Use Permit Option 1
Planned Unit Developmentpptionj W Specific Use Permit Option 2
❑Planned Unit Development Option 2 SUP for Use(s)#: PeOGrooMng/eunmaA-Bak
PROPERTY IDENTIFICATION:
Address: 103 Shadwell Lane Friendswood,TX. 77546 1015 0 kadval
Platted Land—Plat Name:Aal Lot: Block: 1
Unplatted Land—Attach a certified metes and bounds description
OWNER NAME: Johnson Five Holdings LLC Phone:832-641-8217
Owner's Mailing Address: PO BOX 1839 Friendswood, TX. 77546
City: Friendswood State: TX Zip: 77546 Fax:
Owner's Email Address: cjohnson4l1@Yahoo.com
AGENT'S NAME: Phone:
Agent's Mailing Address:
City: State: Zip: Fax:
Agent's Email Address:
In authorizing an agent to represent the owner, the owner attests that his/her agent may make verbal or written
representations and/or declarations on the owners behalf and the owner understands and acknowledges that the
City of Friendswood shall rely upon the agents representations In matters pertaining to the above described
property. The designation of an agent in this matter In no way absolves the owner of any of the owner's
responsibilities outlined by the City of Friendswood. The owner must be the legal owner of record of the property at
the time of submittal of the application.
The undersigned hereby requesLap oval by the Cift Council on the above identified zone change.
Owner's Signaturg' C�4 Date: 11/0112015
Agent's Signature: Date:
Application Number:
Received By: U t V✓{ Received Date: 2' .. i
Date of Public Hearing: Newspaper Notice:
Property Owner Notices: 2- Sign on Property:
Revised 9-2-15 Page 1 of 2
DEED OF TRUST AND SECURITY AGREEMENT
NOTICE OF CONFIDENTIALITY IZIGIITS:IF YOU ARE A NATURAL PERSON,YOU
MAY REMOVE OR STRIKE ANY OR ALL OF THE FOLLOWING INFORMATION
FROM ANY INSTRUMENT TIIAT TRANSFERS AN INTEREST IN REAL PROPERTY
BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL
SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER.
'11113 STATE OFITXAS §
4 IWOR'ALL MEN BY THESE PRESENTS:
COUNTY OF GALVESTON §
That the undersigned,JOHNSON FIVE HOLDINGS LLC,a Texas limited liability company,hereinafter
called "Grantors" (whether one or more), whose address for notice hereunder is 107 SHADWELL WAY,
FRIRNSDWOOD,TEXAS 77546,of GALVESTON County,Texas, in consideration of TEN AND NOM A)
DOLLARS($10.00)cash if hand paid by KRISTINA KONCABA,herelnalier called"Trustee",whose address for
notice is 7J 1 W.RAY AREA BLVD.,SUITE 400,WEDSTER,TEXAS 77598,the receipt oflvhichpaynnanis hereby
acknowledged and confessed,and of die debt and trust hereinafter mentioned have Granted,Bargained,Sold and
Conveyed,and by those presents do Grant,Bargain,Sell and Convey unto Tnislce,and unto die successor or substitute
Trustee hereinafter provided,the following property situated in GALVESTON Comity,Texas,to-wit:
THESOTITHWEST 0.333 ACRE OR LAND OUT OFLOT ONE(1),1N BLOCK ONE(1),OF
AMENDED FINAL PLAT OF WINDING HOLLOW,A SUBDIVISION IN GALVESTON
COUNTY,TEXAS,ACCORDING TO THE MAP OR PLAT THEREOF RECORDED IN
PLAT RECORD 18,MAP NUN113ER 1062,IN THE MAP RECORDS OF GALVESTON
COUNTY,TEXAS, AND SAID 0.333 ACRE BEING THAT SAME CERTAIN TRACT
FORMERLY KNOWN AS LOT ONE(1),IN BLOCKONF.(1),OF WINDING HOLLOW,A
SUBDIVISION IN GALVESTON C0UtNT'Y,1'EXAS,ACCORDINGTOTHR MAP OR PLAT
THEREOF RECORDED AT PLAT RECORD 15,MAP NUMBER 121, IN THE MAP
RECORDS OF GALVESTON COUNTY, TEXAS, WHICH FORMER LOT 1 WAS
ABANDONED BY SAID AMENDED FINAL PLAT OF WINDING HOLLOW. SAID 0.33
ACRE TRACT IS MORE PARTICULARLY DESCRIBED BY METES AND BOUNDS ON
EXHIBIT"A"ATTACHED HERETO AND MADE APART HEREOF;
Inserter with all buildings and other improvements thereon and hereafter placed thereon,and all fixtures,materials,
equipment,apparatus,fitmimm,furnishings and oflu rproperly,real and personal,now or hereafter installed or used on
the above-described property or the improvements thereon, Including, but not limited to, all heating, lighting,
refiigeration,plumbing,ventilating,incinerating,water-heating,cooking and air-conditioning equipment.fixtures end
appnrtanauces,windnw screens,window shades,venetian blinds,awnings,drapes,rugs,and other Bocrcovmings and
shrubbery and otherebaftels andpersonal property used or fin ahlied in connection with the operation,use and enjoymeot
of dieabovadescribcd property and the improvements thereon,and all renewals,replacements andsubs'tinnions thereof
and additions thereto,all of which said in opedy and fixouct shall he deemed to he a part of and affixed to the Above-
described met property;all rents,revenues,income snit profits.,king from any pmtofthe above-described property and
the use thereof,including all rents,revenues,booms money,royalties,rights and benefits accruing to Grantors under all
present and future oil,gas and mineral lenses on any part of the above-described properly;all rights,title and interest
of Grantors fit and to any utility capacities.rod wastewater reservations relating to any part of the above-described
property;all rights,6tic and intemAuf Gramore in madto Any and all Wastewater Capacity Reservations of any kind or
character,if any,covering the Lard or hnprovements,issued or which may be issued by any govemmuenlal agencies
having jurisdictions thereof,and All other rights relating to sewage treatment capacity,water capacity and utilities
servicing the Land or Improvements(said rights described in this subparagraph being collectively sometimes called
"Utilities Rights')and all rights,title and interest of Grantors in aid to any permits,licenses,franchises,certificates,and
odner rights and privileges obtained in connection with said real property;and oil the estate,right,title and interest of
every nature whatsoever of the Grantors in and to all of the foregoing mid every part and parcel thereof.
Notwilhsmndingany olhet language contained herein,no lien or security interest created or evidenced by this
agreemem shell extend to coverany,homestead property of Grantor In the event that such lien or security,interest is not
permitted bythe Texas Constitution and/or Texas Law.
Notwithstanding any other langaaga contuinedhermit,if any person executing this agreement Is a"Conspmar"
as defined in Regulation AA of the Board of Governors of the Federal Rcscrve System,12 C.FSL Pad 227,or the
Federal Trade Commission Practices'Rule,16 C.N.R.Part 444,no lien or security interest created or midetewd by this
agreement shill extend to cover a on possessoy lien or sccurily interest in"Household Goods',olhar than a purchase
money lien or security•interest,in Accordance with regulations its Applicable.
TO HAVE AND TO HOLD the above-described property,together with all and singnlarthe rights,privileges,
herediranan and appurtenances(hereunto in anywise incident,appertaining her belonging(all ofsvhich ma hereinafter
called"Promises')unto Tmstee,and his successors or substitutes forever;and Grantors hereby bind themselves,their
I
GF —) 3S�Lf� zS
Commonwealth Title of Houston
heirs,successors,assigns and legal representatives,to warrant and forever defend title to said Premises into Trustee,
his successors and substitutes,against every person whomsoever lawfully claiming or to claim the smile or any part
thereor.
This mortgage is made on the fallowing trusts,terms and conditions,and far the purpose of securing and
e rfarcingthepaymentofa certain promissory note(hereinaGercalled"Note")ofeven datcherewith lathe principalsam
ofTNVO HUNDRED TWENTY ONE THOUSAND AND N01100($221,000.00)DOLLARS,being payable oil
THREE(3)YEARS from the date therwf and bearing interest before and after maturity,thereof as lhercin speeilled,
containing certain acedconing,maturity and attorney c fee collection clauses,as specified therein,executed by Gramors -
.ad payable to the order of TEXAN RANK(hereinafter,together with any subsequent holder of the Note,called
"Beneficiary'),whose address is 711 AV,BAY AREA RLVD.,SUITE 400,WAUSTER,TEXAS 77598,in lawful
money oftheUnited States of.4merica;all renewals,rearrangements,extensions and/or modifications oflheNotc;and
all other sums ofaoney which may be hereafter paid or advanced by or on behalf of Beneficiary wider the terms and
provisions of this Deed of Trust;any additional loans made by Beneficiary to Grantors(it being contemplated that
Beneficiary may lend additional sums to Qawors from time to time,but shall not be obligated to do se,and Grantors
hereby agreeing that any such additional loans shall be secured by this Dead of Trust); and any and all other
indebtedness,obligations and liabilities ofany kind ofdhe Grantors,or any Maker ofthe Note, to Beneficiary,nowor
hurea0erexisthlg,nbsohrtz or wntingengjoint andiorsevenl,secursAorunsecured,dueornotdue,arising byopenlion
Of law orutherwisc,or direct or indirect,including indebtedness,obligations and liabilities to Beneficiary or twMaker
offhe Note,or Gmnmrs andinrsaid maker critic Note as a member ofany partnership,syndicate,association or other
group,and whelherincunsd bythe Grantors aspriucipal,surely,endorsey guaramor.aecommoddion partymotherwise,
andwhetheroriginally contracted with➢eneficiary oracquired byBcncliciury pursnantto a loaammicipaliom agreement
or otherwise(all ofsvhich are hereinafter referred to as the"Indebtedness").
Grantors hereby expressly covenant and agree than:
1. PROMISE'1'D YAS'NOTE: Grantors will pay,or cause to pay,the Note secured hereby in
accordencowith the tents and provisions Ihcrcof.
2. NON-DISTURBANCEOF'fIIISI.rl:N: The execution ofthis Deed of Trust shall not impair or
affect any other security which may be given to secure the payment of the Indebtedness secured hereby,and all such
additional security shall be considered as cumulative. The taking ofaddilloallcocurity,execution ofpartial releases of
the security or any extension oftime ofpayvment of the Indebtedness secured hereby shall not diminish the force,effect
or lien ofthis Deed ofTmst and shall not affect or impair the liability infamy maker,surety or endorser for the payment
afield Indeblcdmcss.
3. PAYAIENPOPIDVALOREM I'SXE5ASSPSSMENTSETC:Grantors will fray its settle wine
due and bcibre same become delinquent,all tares,assessments and other charges imposed,levied or assessed aga of
the Premises.Grantors shall furnish to Beneficiary paid lax receipts or other evidence satisfactory to Beneficiary on or
before lanmary 31 o(each year with respect w tuxes paid on the Premises for the previous year.
4. KEEPING PREMISES IN GOOD REPAIR: Grantors will keep the Premises in good condition
and repair and will not commit or pemhit any waste,impairment or detericralion of the same and generally will not do
any out by which the value offhe above-described Premises may becomeimpaired. Neither shall any improvements,
fixtures,or personal property be altered,destroyed or removed from said Premises without tine written consent of
Beneficiary.
5. RENTS AS ADDITIONAL COLLATERAL: On default in the prompt payment orally sums of
money secured by this Deed of T.A.Beneficiary,or Any agent of Beneficiary, shall have the right,but not the
Obligation,in dennnd,collect,receive,sue fur and recover in its own nameall presently owing t r future rents,rowaues,
and incomes and to apply lbe same to One payment of the indebtedness secured hereby,alter first deducting therefrom
all expenses of collection. On such default,Beneficiary shall also have the right to who possession of the Premises,
remove all persons therefrom and rent the same for the account ofGmstnrs,and employ such agents and attorneys as
may be necessary with rasped thereto. Likewise,on such default,Beneficiary shall be entitled to have a receiver
appointed to takepassessiou offhe premises and to wileetail rents,income and revenues without notice to Grantors and
without regard to the valuation Orland Premises or the solvency or insolvency ofG strays or any other person liable for
any part of the Indebtedness was cd hereby,and without prejudice to ally other rights or remedies. Noavithsowding
other language containedhorcin,its separate AssignmentofRenis slid Leascs is executed in connection with this Deed
ofTmat,said Assignment of Rents..it],cases shall be controlling in connection with Grantors'assignment arrests and
leases to Beneficiary.
6. INSURANCE REOUIlthb•IENTS: Grantors will keep the Premises insured against such harards
and in such companies,Formal and will may be required by Beneficiary.All such insurance policies shall contain
mortgagees cinsas payable to Beneficiary ses its interest may appear,and at insurance policies and renewals thereof
shall be delivered to Beneficiary inmtediately upon issuance thereof,together will,receipts showing payment of all
premiums thzrcon.Grantors shall famish to Bell eficiary each year evidence ofmmpliaaw with the requirements ofthis
paragraph. Beneficiary shall have the right to collect and receive all money that may become payable and collectible
on all such policies(whe le.through loss or damage to the Premises,or Otherwise)and apply all or any pan critic same,
less n reasonable collection expense,as acredit on the I ndebtedaess secured hereby,even though such lawlin dress may
not be due according to its terms. At its option,Beneficiary may use any part of such money for the rebuilding and
restamtiom Or may port o1Yhe J:nnnged or Aesb'oycd Premises. Any such money held by Beneficiary for rebuilding or
2
restnmtion shall he held without payment or allowance of interest. This provision shall not create any duty on the part
oftlhe Beneficiary to collect insurance proceeds and the Beneficiary shall not be responsible for the failure to collect the
same regardless ofihe muse of such failure.
7. DENEFICLIRY'SRIGHTTOPWADl'AI.OREM'I'ABESANDIN RARA'VCEPRMIJMS,
if Grantors fail to pay as same became due and Pay:nble,all taxes,aasevsmauts and other charges Imposed,levied
or assessed against said Premises or to maintain the insurancecoverage,all As herein provided.Beneficiarymny,
at its option and without waiver of any other rights granted by this Deed of Trust for breach of the covenants
coummedherem,procure.and pay far any such insurance coverage and layanysuch taxes,assessments and other
charges,including any sums that maybe necessary to redeem the Premises from tax sate,without obligation to
inquire hit,.the e.Edfy of any such taxes,assessments,charges and tax sales,(lie receipts of the proper off rang
being conclusive evidence of the validity and amount thereof. All Amounts so paid by Demficiary shall
immediately become due to Bcueficiary,together with interest thereon from the date on which such payments
were made at the rate provided in the Note secured hereby,and all such amounts ahaB he added to and become
a part of the Indebtedness secured by this Deed of Trust.
8. NO OTHER SUPERIOR LIENS: Gramurs will not suffer or permit any lien superior or qual to
(lie lien.,auto,[hereby to attach to or he enforced against the Premises.
4. EhtINF.NT DOMAIN: Ifony part ofthe Premisesshail be(aken for public use underlie power of
eminent dumnin,Beneficiary shall have the tight to receive and collect all amounts mid damages awarded by such
condemnation proceedings nod apply the same on the last maturing humillmems ofihe Indebtedness secured hereby.
10. SUBSEQUENT OWNERS: Subject to the provisions of the Due on Sale paragraph herein,
Beneficiary may deal with any subsequent owner or successors in interest ofihe PnAnises or any part ihureof without
notice to Grantors and without floating or discharging the liability of Grantors tinder this Deed of Trust and the
indebtedness sccured Hereby. Sale ofihe Premises,forbearance by Boneficioty,extensions of the time ofpayarom of
the Indebtedness secured hereby or acceleration of the time for payment ofihe Indebtedness secured hereby laid the
subsequent rehhslatem,ent of sane,shall not operate(o release,discharge,modify,change or affect tine original liability
of Grunters in sybolc or in pmt
If. WAIVEROFAPPRAISEMENT LAWS: Grantors expressly waive and renounce the benefit of
all present and fuhnm lays providing for any appraisement before sale of any ofihe Promises covered by this Decd of
Test.commonly known as"appraisenle Claws",and all present and future laws amending in any manner the lime for
enforcement of collection ofihe indebtedness secured hereby,commonly known as"stay laws"and"redemption laws".
12. DEFECTINTITLE: 11,subsequent to the execution and delivery aftlds Deed fTrust,it should
be ascermi itd that there is a defect in the Hill,of Gonlonto the Premises,or that there is a lien ofany nature whatsoever
on any part of the Premises,which is equal or supctimr in rank to the lien granted by this instrument,of Wit homestead
claim is asserted to uny part of the Premises advese to this hest,or ifCmmors or any subsequent owner ofihe Prmnlses
or any guaonlor of the Indebtedness become insolvent or bankrupt,or a receiver be appointed for their property,or it
petition for reorganization,arrangement,receivership,bankruptcy or rented proceedings be died by or againstGmntohs
or any subsequent owner ofam premises,or any guarantor ofthe bidebtedness,then in any such event any Beneficiary
shall have(he right to dcclorn the Indebtedness secured hereby at mice due and payable without demand or notice,and
the lien granted by this Deed ofTtast may be foreclosed.
13. EORECLOSURE PROM IONS:(a)Ifthe indebtedness secured hereby is folly paid in accordance
wit)the terns and provisions of lids instrument and the Note,and if the covenants and agreements contained herein are
kept and performed,then this conveyanec shall become mill and void and shall be released at the expense of Grantors,
od envise,the same shall remain he fill three and effect,and if default is made in the payment of any pmt of the
Indebtedness accrued hereby or in the performance ofany oftho c o,tar uts mid agreements eonttdued Ht this instrument
or in the Nate,or in any ducnment executed in connection therewith,them the entire Indebtedness secured hereby shall,
at once or at any time therealler while any part ofsaid Indebtedness remains unpaid,id the option of any Beneficiary,
become due and payable without demand or notice(all rights to daomnd and notice being hereby expressly waived),and
it shall thereupon be the duty of the above named Trustee,or his successor or subethinc,as hereinafter provided,to
enforce this trust at the request of any eeneticiary(which request shall be presumed)aad to sell the Premises with or
without firs(baring taken possession of the same mid in wholo or ht part,ns die acting Trustee may elect(sail rights to
a marshalling of assets oft.,rumors being expressly waived Ina ally),to the highest bidder for cash at public Auction at
the Courthouse door of the County in which said Premises are situated on the first Tuesday ofany month between the
hours of 70 hhf,and q P.M,alter giving notice ofihe time,place mad terns of sale and the Premises to he sold by(i)
die acting Trustee or any person chosen by him posting or causing to be posted written orprinted notice thereof At least
twenty-one(21)days preceding the data of said sale at the County Courthouse door or the place designated by the
appropriate authorities of said County (whichever place is legally appropriate),(ii)the acting Trustee or miy person
chosen by him filing or causing to be filed with die County Clerk of the Comity in which tic Premises are situated
written or printed notice thereof at least twenty-one(2))days preceding the data ot'said sale,and(iii)the Beneficiary
or any person chosen by it,at least twenty-one(21)days preceding the date ofsaid sale,serving writtennotice of such
preposed sale by certified mail oneaclh debtorobligated to pay the Indebtedness evidenced by tLeNote according to the
records ofideneficiary. Service of such notice to ouch debtor shall be completed upon deposit of line notice,enclosed
in a postpaid wrapper,properly addressed to each debtor at the most recent nddress as shown by the records of
Beneficiary,in a post office or official depository under the care and custody ofihe United States Postal Service, 'flue
3
affidavit ofany person having knowledge of the facts to the effect that Inch service was completed shall be prima facie
evidence of the fact of service,
After such sale,the acting Trust=shall make due conveyance with general warratty to the purchaser or
purchasers and the Gmntors bind themselves,their heirs,assigns,exemears,administrators,successors and legal
representatives to warrant and forever defend the title of such purchaser or purchasers.
(b) If de fault is it in the payment crony part ofthe Indebtedness secured hereby or in the performance
ofany ofthe covenants and agroemun ...tanned to this instrument or in tilt Not,,any Beneficiary shall have the right
mid option to proceed with foreclosure in satisfaction ofsuch item or items by directing the Trustee,arhis successor or
substitute as hereimufler provided,to proceed as ifuuder a fill foreclosure,conducting the sale as herein provided,and
without declining the whole debt due,and provided that if sale is made because of default as hereinabove mentioned,
such sale may be made subject to the amended part ofthe Note and the Indebtedness secured hereby,aid it is agreed
that such sale,if so made,shall Dot in any canner street any other obligation or obligations secured hereby,but as to
such other obligations this Deed of Trust and the liens created hereby shall remain in fall force and effect just as though
no sale had been made under the provisions of this paragraph. It is further agreed that several sales may be made
hereunder without exhausting the right ofsale formy other breach of any ofthe obligation secured hereby;it being We
purpose to provide fora foreclosure and sale ofthe Promises fur any matured portion ofany ofthe Indebtedness secured
hereby or other items provided for ccrcinwithout exhausting thepower to foreclose and to sell the Promises for any other
pact of the Indebtedness secured hereby whether induced it the time or subsequently ma luring.
(c) The proceeds Gum any such sale shall he applied by the acting Trustee as follows',
FIR,4T; To the payment of all expanses of advertising,selling and conveying said Premises,
including o commission to the acting Trustee of five percent(5 1/6)of tine ammnt of the unpaid
Indebtedness secured hereby.
SECOND:'1'D thepaynienito Beneficiary ufall unfold lodebteduess and accrued interest to the date
ofsale.
THIRD: The Indirect if any,shall be paid to Gmntors.
(d) The acting Trustee hereunder shall have the right to sell tine Premises in whole or in part and is such
parcels and order as he may determine,and the right ofsale herenndershall not he a dualan dby one or mote sales,but
successive sales may be had until all ofthe Premises havo been legally sold. In the event any sale hereunder is net
completed or is defective in due opinion ofBencliciary or the holder ofany par[ofthe Indebtedness,such sale shall not
exhaust the power ofsale hereunder,and Beneficiary or such holder shall have the right to cause a subsequent sale or
sales to be made by tiro Trustee or any successor orsubstiluto Trustee.Likewise,Beneficiary may became line purchaser
at any such sale if it is the highest bidder,and shall have Inc right,after paying or accounting for all costs of said sale
or sates,in credit the amount of the bid upon the amount of the ludebtedness owing,in Had of cash payment. The
Purchaser or purchasers at foreclosure shall have the right m affirm or disaffirm any lease of said Premises.
(a) it shall not be necessary for the noting Trustee to have constructively in his possession any pan offlic real
or personal property covered by this Deed of'1'rust,and the title and right ofpossession ofsaid property shalt pass to
the purchaser or purchasers at such sale herein contained or otherwise.Gmnmrs or any person claiming any part of the
Premises by,through or under Grantors,shall not be entitled to u marshalling of assct�-ar a sale in inverse order of
alienation.
(f) The recitals and statements of fact contained in any notice or in env conveyance to the purchaser or
purchasers at anys ch sate shall be prima facleevidence ofthe truth ofsuch facts,and all prerequisites and reluircments
necessary to the validity ofany such sale shall be presumed to have beer performed.
(u) My sale under the provers granted by this Deed of1'rust shall be a perpetual bar against Grantors,their
heirs,successors,assigns and legal representatives.
14.TPNANTSATWILLAkTRRFORECLOSLERF,:In the eventofa foreclosure under the powers granted
by this Deed ofTrust,Gramers,mid all other persons in possession ufacy panofihe Prandses,shall be deemed tenants
al will ntchc purchresnr nl such foreclosure sale and shall Ie liahlc for a reasonable rental for the use ofsaid Premises;
and if nny such tenants refuse to surrender possession of said Premises upon demand,the purchaser shall be entitled hl
institute mid maintain the statutory action offercible entry and detainer and procure swill ofpossession therenndeq and
Graders expressly waive all damages sustained by reason thereof.
15.PR0\'I9I0N9 FOR 50BSTYrUTP PROS': In caseoftbedeath,inability,refusal or incapacity of
the heroin named'i mme to act,or at the option of any Beneficiary at any time and without cause or notice,a successor
or substiute Trustee may be smmed, constituted and appointed. Sucocssor or substitute trustees may be named;
constituted and appointed without procuring the resignation ofthe fomuer tastes and without other formality then the
execution and acknowledgement by Beneficiary of a written instrument(which instrument, if Beneficiary is a
ecepomGoi,shall be encoded by the President or any Vice President and without the necessity of any action by the
Board of Directors authorizing such appointment)appointing and designating such successor or suicAmile trustee,
whereupon suchsuceessora'substituta(rushee shallbemme vested with nndsucceeJ to all ofthe rights,tildes,privileges,
powersmddutiesofthe Tnuutecnamcdhcrein. Such diddofappoinraentofa substitute trustee shall exist as often and
d
whenever for any ofsaid causes the original or successor or substitute trustee cannot or will not actor has been removed
as herein provided.
16. USURY SAVINGS CLAUSE: This Deed of Du(has been executed and/or delivered in,and the Not.
has been issued in,the State of Texas,rand each is to be conshued in accordance with and governed by the laws of the
State of Texas and the laws of the United States Of America,as applicable. fn the eamothat sayers or more of the
provisions contained in this Deed of Trust shall,for any reason,be held invalid,illegal or unenforceable in any respem,
such invalidity,illegality or onenforceability shall not affect any other provision oflhis Deed ofTrusl. Purdsennore,it
is the intention of Grantors and Beneficiary to confirm strictly to applicable usury laws, as presently in effect.
Accordingly,iflhe transactions contaoplated herebywouid be usurious under applicable law(hioludingthe laws ofthe
Slate of Texas and the Imrs nfthe United States of America),then notwithstanding anything to the contrary in du Note
or any other evidence of the Indebtedness,or any agreement entered into in connection with or as security for the
Indebtedness,it is agreed as follows: (i)the aggregate of all consideration which constitutes interest under applicable
law that is contracted for,charged or re aeived under die indebtedness or under nay of the other aforesaid agreements
or otherwise in connotation willithe Indebtedness shall mnderno circumstances exceed the mnxirmun minim nfinterest
permitted by applicable law,and any excess shall bo credited on the Indebtedness by the holder thereof(or,if the
Indebtedness shall have been paid in full,refunded to the Gramors);and(ii)in the event that the maturity of the
Indebtedness is accelerated by reason o£an election ofthe holder theoorresu]ling from any event of default under this
Decd of Trust or otherwise,or in the event of my required or permitted prepayment,than such consideration that
constitues interest may never include mote than the maximum auountpertained by applicable law,and excess unclear,
ifany,provided for in this Deed ofTrust or otherwise shall be canceled autouretioally as ofihe data f&a.h acceleration
or prepayment and,ifthcrctel'ore paid,shall be credited on the indebtedness(or,if Welndebtedness shall have been paid
in fill,refunded to lire Grantors).
17. FIYTUREFILING: This instrument shall be deemed to be and may becnforecd front time to Fme as
Deed of Trust, Chattel Mortgage,Assignment,Contract, Security Agreement,Finning Statement, or Lien no
Machinery Shouted on Realty,and from time to time as any one or mom thereof,and shall constitute a"Fixturel fling"
For purposes of Article 9 of the Tenors Uniform Commercial Code.
18. UNSECURED PORTION OF DEBT: If the lien created by this Dud of Trail shall be invalid or
unenforceable as to any pail of Ilia Indebtedness secured hereby,tae unsecured portion ofsaid Indebtedness shall be
completely paid and liquidated prior to the payment and liquidation of the remaining and seemed portion of said
Indebtedness,and all payments made oil said ndebtedness shall be considered to have been first paid on and applied
to the complete payment and liquidation ofthat portion ofihe Indebtedness which is musecured by the lien ofWis Dead
of Trust.
19. ESCRON ACCOUN'P: Notwithstanding paragraph 3 above,upon request form Beneficiary,Growers
shall weato a fund orrearivc for the payment oral]man...rc premiums,taxes and assessments against the promises by
paying to Beneficiary each month contemporaneously with the installments doe unit payable on the Note,a sum equal
to the premiums that will next become due and payable on thehamrd insurance policies coveringlhePremises,plus taxes
and assessmerds nest due and payable on the premises,as estimated by Beneficiary,less all stuns paid dictator,divided
by the numberofmornhs to elapse before two months prior t0 the data when such premiums,taxes and assessment$will
become due and payable,such sums to be held by Beneficiary without hnerest for the purpose ofpaying such premiums,
taxes and assessments. Any excess reserve shall,at the discretion of Beneficiary,be credited by Beneficiary on
subsequent payments to be made by Grantors,and any deficiency shall be paid by Grantors to Beneficiary on or before
the date when such premiums,taxes and assessments shall be due, Transfer of legal title to the Premises shall
mnonmtieally transfer to the new owner the beneficial interest in all smnu deposited under(tic provisions of this
plummaph.
20. SUBROGATION RIGHTS OP BENEFICIARY: It is understood and agreed that the proceeds ofihe
Note,to the extent that the some are milbool to take up nay outstanding liens and charges against the Premises,or any
portion thereof,have been advanced by Beneficiary at Counters'request and upon Grantors'mprwentation that such
mnnmda are due and payable. Benetciary shall be subrogmed to any and all rights,superior titles,liens and equities,
owned or claimed by any owner or holderofsuid outstanding lienshowever remok,regardless ofwhether said liens ire
acquired by assignment or are released by the holder thereof upon payment.
21.DUGON.SALE:Grantors shall not sell,assign,mortgageor otherwise(ransCeror encumber lhcirinterest
many portion ifthePor mis is without firstobtaining the prim written eoasc it ofBeneficiary.Beneficiary shall be under
no obligation to consent to any requested sale,assignment,transfer,mortgageor encnmbmnce Of Grantors interest in
the Premises. without limiting the foregoing,ifBenefciary does grant such consent,hurev,make such conditions for
the groaning ofthatcousent as it may in its sole,subjective discretion deem necessary,desirable or appropriate,including
wilrout limitation Q)requiring tiro payment to it ofa transfer fee to cover the cost ofdocmnenting the transaction on
its books,(ii)requiring the payment of all of its attorneys'fees in connection with sue),sale,assignment,it surfer,
mortgage or encumbrance,(iii)increasing the interest rate on tire Indebtedness,(iv)requiring the express assumption
ofpayment oftheludelnedness and a fthe obligations under this Deed ofTrust and Security Agramordby the transferee
ofs tch interest in dinPmmises(with or without the release of 3ra e rs from liability for such payment and obligations),
(v)requiring die exu:ution ofan assumption agreement,modification agreement,supplemental security documents and
financing stalcurems satisfactory in form and substance to Beneficiary,(vl)requiring endorsements to any existing
mortgage title insurance politics insuring its security interest in the Premises,and(vii)requiring additional security for
thepaym,ntoftheindeblodness. Onamer5'falhrrem comply with this paragraph prior to consummating any such sale,
mssignment,hans£cr,mortgage ur nmumbra nee shall constitute default underthe Note and breuch ofthis Deed of1'rust
S
and Security Agreement,entitling Trustee and Beneficiary to avail themselves of all rights,powers,remedies and
resources allowed or permitted therein or herein.
22. GRANTING OF SECURITY INTEREST: To forlhersecure said Indebtedness,Granters hereby grant
W Bmlofrciary a security interest ire and to the Premises teacher as such Premises consists of equipment,inventory,
fixtures,chattel paper,documents,hsstrumneuts,accounts,contract rights,consumer goads,faanpmducts,money,general
intangibles,goods and any and all other personal property of any kind or character defined in and subject to the
provisions of the Texas Uniform Commercial Code,including the proceeds and product of and from any and allof such
personal property. If may,default Occurs under the Corms of The Note or this instrument,Bermliaiary is and shall be
entitled to all offhe rights,powers and remedies afforded a Secured Party bythe'fexas Uniform Conuneroial Code with
referomce to the personal properly and fixtures in which Beneficiary has been granted a security interest herein,or the
Trustee or Beneficiary may proceed as to both the real and personal properly covered hereby in accordance with the
rights,powers and remedies granted under this instrument in respect of the real property covered hereby.
23. BURS,SUCCESSORS, ASSIGNS AND LEGAL REPRESENTATI'FS: Tim covenants and
agreamonts hcrcin contained shall inure to the benefitofand be binding upon the respectveheirs,successors,assigns,
and leeal represcntNives oClhe parties thereto. Whenever used,the singular number shall include the plum],the plural
the singular,and the use of any gender shall be applicable to all genders.
24. AI'PRAtSALS \ND CLASSIFICATION OF LOAN: Grantors hereby agree and covenant(i)that
Grantors shall reimburse Beneficiary for any and all expenses inclined by.Beneficiary in connection with any test
appraisal of the Premises required by my regulatory authority of Beneficiary,such payment to be paid within ton(10)
days after written request by Beneficiary,and(it)in the oventt ul any regulatory authority 0f 13 eneficiuy myuires it to
create a specifio reserve for the Note or Classifies the Note as;a"scheduled item',Grantors shall,within fell(10)days
afterwHum rcqucst byBenoficiary,deposit in aplcdged savings amount ial ehatciery t earnount ofumneynecessary
to remove the Note as a"scheduled item"and/or re0um'a the specific reserve requirements olauch authority. Grantors
hereby agree and covenant that Beneficiary,at its option,may on one(1)year Imm the dale hereof and on any one(1)
year anniversary date thereafter during the term of this Deed of Trust and Security Agreement,require that an appraisal
bentade on the Premises and that Grantors shall pay for any and all expenses incurred by Beneficiary in conneclic nw'ilh
any such appraisal,with such payment to be made within lea(10)days after written request by Beneficiary.
25, SUBJEC("1'O ISASICt11CNT5 RESTRICITONS.ETC: This Deed ofTmst and Serarzny Agreement
Is executed subject to all vat id easements,comictimns,covenants,mineral and/or royalty resersmtim a and maintenance
charges,if any,applicable to and cnfomcabla against the Premises which have been duly recorded in the real estate
records of the county in which the Promises are located prior to the dale of the recording of This Deed of Trust and
Security Agreement,
26.FURNISHING OF FINANCUL INFORMATION:Grantors agree to provide,orcausetobe provided,
phompilpto Beneficiary,ullinfornatmn reasonably requested by➢cneficiany concerning the Premises and the financial
status,including,without limitation,financial statements and tax returns of Grantors and of any other panics oblignted
on the Indebtedness.
27. WAIVER OF DEFICIENCY STATUTE. PROTECTIONS/FAIR MARKET VALUE FOR
CALCULATING DEFICICNCIES. Nonritlastandinghhe provisions ofSCCtions 57.003,51.004,and 51.005 of the
Texas Property Code(as the sane nay be amended from time to time),and to the anent pertained by law,Grantors
agree that Beneficiary shall be entitled to seek a deficiency judgment from Orantore and any other party obligated on
the Note or any guarantor of the Note equal to the difference between the moment owing on the Note and Zile amountfar
which the Premises was sold pursuant to ajudicial or noujudiclnl foreclosure sale. Grantors expressly recognim that
this section constitutes a waiveroftie above-cited provisions oftheTexas Properly Codewhichwould otherwise permit
Gmtrtors and otherpersons against whom recovery of deficiencies is sought or guarantors independently(even absent
the initiation of deficiency proceedings against them)to present competent evidence ofthe fair market value of the
Premises as of fie data of foreclosure mid offset the fair market value of the Premises as of the(late or foreclosure
against any deficiency the amount by which the forcclosm'e site price is determined to be less than such fair market
value.Grantors further recngnd,samd agree that ties Waiver creates an hrebuttahlepresumption thanthe fcreclosurosa]e
price is equal to the fair market value of the Premises for purposes of calculating deficiencies owed by Gunnels,other
borrowers rah the N.M.guarantors,and others against whose recovery of a deficiency,is sought.
Alternatively,in the oven[this waiver is determined by a court of competentjurisdicliun lm be unenforceable,
the to]lowing shall be the basis for the finder of Pam's determination of the fair market value often Premises as of the
date often foreclosure sale in proceedings gowned by Sections 51.003,51.004,and 51.005 offhe Texas Property Code
(as amended from time 10 time):
a. The Premises shall be valued in an as is"condition as of the date of the foreclosure sale,without any'
assumption or expectation that the Premises will be repaired or improved in any mo mcr before a resele of the
Premises after foreclosure;
b. The valuation shall be based open an assumpliOrt that the fnreclnsurc purchaser desires a prompt result,of the,
Promises for cosh promptly(but no later than twelve months)following the foreclosure sale;
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c. All roasonableciosing costs customarily home by the seller in a commercial real esiarevansaclionshould be
deducted from the gross fair market value of the Premises, including, without limitation, brokerage
commissions,title Insurance,a survey of the Promises,tax flirtations,ffiWrticy's fees,and mi nketing Costs;
d. 'Irmo gross fair market value of the Premises shall be further discounted to account for any estimated holding
costs associated with maintaining the Premises pending sale,including,without limitation,utilities expenses,
property management fees,taxes and assessments(lo the extent not accounted for in paragraph r,above),and
other maintenance expenses.
c. Any expert opinion testimony given or considered in connection with a determination of the fair marketvalue
afthePromises must be given by persons having at least five years experience in appraising property similar
to the Premises and who have conducted and prepared a complete written appraisal of the Premises taking into
consideration the factors set forth above.
28. PERFECTION OF SECURITY 1NTEIMF1 S.
0) Grantor hereby authorises Benefciary to file a financing statement (the `Financing
Staternenl")dcsmibhng the colltleml securing the Indebtedness.
(it) Beneficiary shall,at Beneficiary's option and at the expense of Grantor, receive prior to
closing tar official report from the Secretary of Smte(or other appropriate authority)ofeach
State in which (a)lire aforementioned col[arc.]is located,(b)the ChiefExecutiva Office
State,and(c)the Grantor State(each as defined below)(the"SOS reports")indicating that
Beneficiary's security interest is prior to all other security interests or other interests retleeled
in the report.
29. LOCA3'ION,STtt—IT INCORPURA"PION(OR RES[DENCELAND.NAME OF GAANTUR.
Umntor's:
(i) chief executive office,and place ofbusiness,(ifGranlor is an organization)or residence(if
Grantor is a natured person)is located in the State of Texas(the"Chief Executive Office
Slate").
(ii) state of incorporation,and Organization(if Grantor is an organh,ution)or residence(if
Grantor is a natural parson),is the Smtc of Texas(the'Greater State");and,
(iii) exact legal name is as set fords in the first paragraph Ofthis Deed ul'Trant.
30. GENERALCOVENANTS. Until tln Indebtedness is paid in full,Grantor agrees that it will:
(i) pr&SeNeltseor Mtc,mdfororgani7atiortm existence and pot,In Onaramsaction ora series
of related transactions,merge into or consoUckie with any other entity,or sell all or
substantially all of its assets(if Gramor is not a natural persomr);
(ii) mAcbauge the state ufils incorporation ororganlzation(if Granor is non a natural person);
(iii) natchnageitscmporatcorur ganizatiou namowilhualpeuviding f eneticiary with 70 days'
prior wdavi notice(if Grantor is Act a natural person);
(iv) deliver such Financing Statement or Smtmnents,or mueadments thereof or supplements
Ihcrclo,or other Instruments as Beneficiary may from time to time require in order to comply
with the Texts Ttnifmm Commuroiul Code(or other applicable State law of dtejurisdiction
where any ofthe Collateral is located)and to preserve and protect the securiiv interest hereby
granted;and
(v) not change the state of its residence-(ifGrnntor is a natural person).
31. IMAGING OF LOAN DOCUMENTS AND RELATED INSTItUhIENTS: The undersigned
understands and agrees that(i)Benefteimy's document retention policy may involve the imaging of executed loan
documents and Other miscellaneous documents,papers,reports and other correspondence,and the destruction of the
paper originals,and(ail the undersigned waives ally right that it may have to claim than the imaged espies niche loan
documents and other misecllarseous documents,papers and other connspondenee related thereto are not originals.
32. AUTHORIZATION TO DISCLOSE INFOMMATION: Grantors) and each other liable party
acknowledge and agree that Beneficiary may,at any time,without the consent of or notice to Gramor(s)or any other
liable pane assign,sell,transfer or grant participations Ill all or part of the obligations of Grantor(s)secured hereby,
together with any liens or collateral securing the paymmn ofthe said Nam.Benefichoy may disseminate to any assignee,
purchaser transferee or puni6pant,prospective assignee,purchase,transferee,pmlicipaut,err any party expressing an
interest in the Note hereby secured any information that Beneficiary has pertaining to the loan by the Note hereby
secured,torturing without limitation,any information regarding Grantor(s),any other liable party,or any property
7
owned or held by Maker or any odea liable party or offered as security for orsectufag the loan evidenced by toe Now
hereby secured,
33. RENER'ALANDEXTENSIGN:The Note hereby secured is given in renewal and extension a ftlic
sums[all owing and unpaid by Grantors herein upon that one certain promissory note in the original principal sum of
ONE I[UN DRED FO.ICAY ONE THOUSAND AND NO1100(S 141,000.00)DO1d.ARS dated MARCiI 29,2012
executed by COASTAL INSURANCT GROUP,LLC,aad payable to the order ofTEXAN BAN&secured by aDeed
of Trust and Security Agreement to KRISTINA KONCABA.TRUSTEE,and duly recorded uudor GALVESTON
County Clerks File No.2 012 01711 4;which lien is hereby expressly acknowledged by Grantors to he a valid and
subsisting lien against the or herein described,and it is expressly ngrmd that said limn is hereby renewed,extended
and cantle ued in full force and effect m secure the payment of the Time hereby secured.
34, CASH ADVANCE: The Nate hereby secured is given for and represents the sent of SEVENTY SIX
THOUSAND SIX HUNDRED NINETY AND NO1100(,576,690.00)DOLLARS this day advanced and pub!in cash
by TEXAN RAMC at the special insmee and request of the Grantors hereht.
35,CASH ADVANCE!Tile Note hereby secured is given fcrandreprescats the sum of NINBTHOUSAIND
THREE HUNDRED THIRTY FOLK AND 731100($9,334.73)DOLLARS this day advanced and paid in cash by
TEXAN DANK al Ile special hnsiance and tequustofllse Grantors herein for closing costs in connection with this loan
transaction.
36. RELEASE OF CLAIM :Grantor hereby releases,discharges and acquits forever Beneficiary and its
officers,directors,trumees,agents,employees Had counsel(in each case,pash present or future)from any and all Claims
existing as of the date hereof(or the date of actual execution haircut.by Grantor,if later).As used herein,the tent
"Claim"shall mean any and all liabilities,claims,defenses,demands,actions,causes oracton judgnents,deficiencies,
interest,liens,costs or expenses(including court costs,penalties,attorneys'fees and disbursements,and amounts paid
in seRlement)of any kind and character whatsoever, including claims for runty, breach of contract, breach of
commitment,negligent misrepresentation,any type of&and(including fraud in the inducemenoor failure to actin good
faits,in each case whether now known or unknown,suspected or unsuspected,asserted or uuassmted or primary or
contingent,and whether arising out ofivritan documents,emwritlen underedrings,cralmaofeonduct,tort,violations of
laws or re¢ulalions or othewue,To the maeiatnm extent permitted by applicable Inv,Grantor hereby waives all rights,
remedies,chums and defenses based upon or related w Sections 51.003,51.004 and 51,005 ofiheTexas Property Code,
W the extent the same pertain or may pertain An any enfes:emeut of his Deed of Trust.
37. AMERICANS W1TIa DISAIilLrTIES ACT: Grantors shall cause tiro Promises and theoperation
and use tbcrcof m comply with the Americans with Disabilities Act,and similar state Imes concerning accessibility for
persons withdisahil ities aswcll As rules mndrogula6ons p r mnlgaledunrlersuch laws.Such laws,roles and regulatinos
may be referred to herein as"Accessibility Laws".
Grantors hereby agree to protect,indemnify and hold harmless me Beneficiary from any and all liability,loss
and costs the Beneficiary may suffer as a result of any claims,demands or judgments Against it by any third-party,
including without[initiation any governmental authority,arising from any violation or asserted violation of illy
Accessibility Law. This indemnification shall include The costs of remedial action required to comply with the
Accessibility Laws,the reasonable cost orassessing the claim or demand and reasonable allomey's fees expended in
defense against any such claims. This indemnify shed survive ibetmnsfer ofthe premises by foreclosure,sale or Aced
in lieu of foreclosure transaction,as well as the repayment in fell moire Note.
Grantors Shull promptly provide Beneficiary with copies of a0 communications,complaints, approvals,
consents,permits or Agreements with any governmental authority or agency or any private entity relating to the
conplianccofthr Premises and die operadonthereofivida Accessibility Laws. Upon written request by Beneficiary,
Grantors shall cunducland provide8encfeiatywith results of Hpiumprialeexamination and aesemmunlofdse compliance
of tlm Premises whin Accessibility Laws and Thopenommuce of Gmutors in compliance therewith.
Beneficiary shall have the right,but not the obligation,subsequomm any default by Grantors hereunder and
without in any manner limiting Beneficiary's other rights and remedies hereunder,to error onto the Premises and take
such actions Beneficiay deems necessary.,advisable to cause the Premises to comply with,Accessibility Laws.All
reasonable costs and expenses paid or insured by Beneficiary in tire exercise ofsuch rights shell be payable by Grantors
upon demand.
The act of obtaining an accessibility assessment And any inspections conducted by Beaeflolmy or its
representatives shall not affect,modify wconsturae,a waiverofthe tights and obligations ofthe parties hereto As act out
in this provision mud the rights and rcmcdics of the Denefrcia y shalt be camuhuive of and not modify the rights and
comedies the Beneficiary would have in the absence hereof
Gmnnn acknowledges than it may be impossible to measure accn owly the damages to Blumfle my resulting
from a breach of Grantors'covenants under this provision and the Bta d e ary may not have an adequate remedy m law
for such a breach.The parties agree,dictators,that these covenants shall bespecifically enforceable against Omntors.
3
AGRRRMENT FOR BINDING ARDTTRATION. The pastles agree to be bound by the terms and
pau vWowuftheArbUnlionAgrmmentand/orhAltmtlonpmgram of"MolatehereMth,whfchislumrporated
by reference herein end U aeimowledged ea receivedby,the pardea pursuant to which my and all dbputea(as
daBned in the Arbitration program and/or Arbitration Agreement)shall be resolved by mandatory binding
arbitration upon the request oofrraa�my party.
EXECUTED this thc:&-day of JANUARY,2014.
JOHNSON HOLDINGS C,a Testy limited RabWty company
Cf YTON A.JO{ SSOK,h AGBR
J& JOHNSON,RA. AGRR
17M STATE OF TEXA9 §
COUNTY OF HARRIS §
`
In
This instrument was acknowledged beforo mo on tho , 1. day dQqh JAf A.D.,2014, by
CLAYTON A. JOHNSON, MANAGER, JRNNIMR A. JOHNSON, HANAGER of 11DEMON FIVE
HOLDINGS LLC,a Tess limited liablity company,in tho capacity therein stand and on behalf of said limited
liability wmpony.
'St R14 ivy Pr'c llu
NOTARY PUB ` STATE OF TEXAS
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S7pCY M.PROUE
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9
Exhibit A
The Southwest 0.333 acre of land out of Lot One(1),in Block One(1),of AMENDED FINAL PLAT OF
WINDING HOLLOW,a subdivision In Galveston County,Texas,according to the map or plat thereof
recorded in Plat Record 16,Map Number 1062,in the Map Records of Galveston County,Texas,and said
0.333 acre being that same certain tract formerly known as Lot Ono(1),in Block One(1),of WINDING
HOLLOW,a subdivision In Galveston County,Texas,according to the map or plat thereof recorded at Plat
Record 15,Map Number 121,in the Map Records of Galveston County,Texas,which former Lot 1 was
abandoned by said AMENDED FINAL PLAT OF WINDING HOLLOW. Said 0.33 acre tract Is more
particularly described as follows:
Beginning at the South Comer of Lot One(1),In Block One(1),of AMENDED FINAL PLAT OF WINDING
HOLLOW according to the map or plat thereof recorded at Plot Record 15,Map Number 121,in the Map
Records of Galveston County,Texas,
Thence North 44°51'49"West,150.00 feet to the southeast line of Shadweil Lane for a point for corner,
Thence North 44°29'11"East,96.66 incite a point for corner,
Thence South 44°51'49"East,150.00 feet to a point for corner,
Thence South 44°26'11"West,96.66 feet to the Point of Beginning and containing 0.33 acres of land
FILED AND RECORDED
OFFICIAL PUBLIC RECORDS
'gva"jq �
2014 Jan 23 02:57 PM Fee:$ 62.00
2014003701
DWIGHT D. SULLIVAN, COUNTY CLERK
GALVESTON COUNTY TEXAS
WARRANTY DEED
WITH VENDOR'S LIEN IN FAVOR OF MORTGAGEE
NOTICE OF CONFIDENTIALITY RIGHTS:IF YOU ARE A NATURAL PERSON,YOU
MAY REMOVE OR STRIKE ANY OR ALL OF THE FOLLOWING INFORMATION
FROM ANY INSTRUMENT THAT TRANSFERS AN INTEREST IN REAL PROPERTY
BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR SOCIAL
SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER.
THE STATE OF TEXAS §
COUNTY OF GALVESTON §
THAT THE UNDERSIGNED,DAVID GRUDZINSKI and wife,LOURDES GRUDZINSKI,(herein called
"Gran(or'),forandincomiderationoft sum of$10.00 cash and other good and valuable consideration to Grantor in
hand paid by JOHNSON FIVE AGS,LLC,a Texas B tied 11 bit company(herein called"Grantee'),
whose address is 1202 TALL PINES DRIVE,FRIENDS WOO ,TEXAS 77546,the receipt of which is hereby
acknowledged,andoffartherconsideralion oftheexeculion muldelirryby Grantee o at onecertamPromissory,Note
of even date herewith, in the principal sum of ONE U1V' THOUSAND N�/100 ($100,000.00)
DOLLARS (herein called the"Note"), payable to�}Ft on .r of AT"vd,EGIANCE BANI{�'EXAS(herein called
"Mortgagee"),bearing interest from dale at the rates 'ic ad containing provisions for attorney's fees,Mortgagee,
at the special instance and request of the Grarne ar)y a the sum of said Note as part purchase price for The Land
herein conveyed,the receipt of which is hem baclm led g ,Mortgagee is hereby subrogated to all of the rights of
Grantor herein;the Vendor's Lien and superior detsher' y expressly transferred to and retained in favorofMortgagee
IosmurethepaymentoftheNote,thes a0sf' rigs ee was the Grantor herein;the Note is further and additionally
secured by a Deed of Trust of even fe hcrewn(b'from Grantee to DARYL D.BORIS,TRUSTEE,containing
provisions for foreclosure under pow of sale which reference is here made for all purposes;
IIAVEGRANTED,SOLD AND CONVEYED,andby thesepresents do GRANT,SELLAND CONVEYunto
Grantee all that certain tract or parcel of land and all improvements located thereon(herein called"The Land"),more
particularly described as follows:
LOT(S) TWO (2) AND THREE (3), IN BLOCK ONE (1), OF WINDING HOLLOW,A
SUBDIVISION IN GALVESTON COUNTY,,TEXAS,A f,OIFDINGTO THEM"OR PLAT
THEREOF, RECORDED IN VOLUME 15, ACE 121 OF TIIE MAP RECORDS OF
GALVESTON COUNTY,TEXAS.
The conveyance is made and accepted subject to the following matters,but only to the extent they are in effect
at this time and only to the extent that they relate to The Land:The lien for current ad valorem taxes and maintenance
assessments(if any)not in default,land use restrictions,deed restrictions,covenants,casements,outstanding mineral
reservations,rights androyalties,ifeny,show nofrecordin the abovemenfionedcou ityandslate,and to all zoning laws,
regulations and ordinances of municipal and/or other governmental authorities,if any,to which The Land is subject.
To have and to hold The Land togetherwith allrights and appurtenances thereto in anywise belonging,subject
to the foregoing terns,unto Grantee lheirhehs,execu tors,administrators,personal and legal representatives,successors
and assigns forever,and Grantor does hereby bind themselves,duarhehs,executors,administrators,personal and legal
representatives,successors and assigns to warrant and forever defend The Land,subject to the foregoing terns,unto
Grantee,Iheirheirs,executors,administrators,personal and legalrepresentatives,successors and assigns,against every
person and entity whomsoever lawfully claiming or to claim the same or any part thereof.
BUT IT IS EXPRESSLY AGREED AND STIPULATED that the VENDOR'S LIEN, including the
SUPERIOR TITLE,is released against The Land in favor of Mortgagee,its successors and assigns,until the Note and
all seemed interest thereon,and all renewals and/or extensions thereof,together with all interest thereon, is fully paid
according to its face and tenor,effect and reading,and together with all additional sums which may become due and
payable by the terns of said Note and/or by the terms of the aforesaid Deed of Trust,when this Deed shall become
- absolute,and Grantor herein transfers unto said Mortgagee,its successors and assigns,the Vendors Lien and Superior
Title to The Land,in the same manner and to the same extent as if the Note had been payable to the order of Grantor and
by said Grantor assigned to said Mortgagee without recourse.
Whenever used In this document,unless the context clearly indicates a contrary anent or unless otherwise
specifically provided herein,thepronouns ofanygender shall include the other genders,including the neuter,and either
the singular or plural shall include the other.
Grantee joins in the execution of this Warranty Deed for the purpose of accepting delivery hereof,and to
acknowledge,consent and agree to the terms and conditions of this instrument.
We hereby OK*ttettlb Is a true eM
cooed CM of the 0d9W1 ImhumeDf
A MPANY
Byi
All ad valorem taxes and assessments on the Property have been prorated between the parties hereto as of the
date of this Deed,and Grantee assumes liability for the payment thereof and for subsequent years.
EXECUTED THIS THE IS day of JUNE,2015.
GRANTOR:
DAVID GRUDZINSII/
• (/LbURDN GRUDZINS
GRANTER:
JOHNSON HOLDING , LC,a Texas limited liability mainly
CLAYTON A.JOHi SON,MANAGER
JEN E, A.JOHNSON,MANA#R
—r
THE STATE OF TEXAS §
COUNTY OF
This instmn'IF;Pwais...4 Fho#ledged before me on the �5 dayof ' d LU\'C_ , 2015,by DAVE/
GRUDZINSRI aud� $.Q,-fjI{'Q�1ZINSKI.
Pny LZ�
Op",r - C NOTARY PUBLIC,sTATP OF TEXAS
THE STATE OF TEXA'S'n�nnu""� §
COUNTY OF 0-4�6 §
This instrument was acknowledged before me on the 15 dayof A�-V\'Z 2015,by
CLAYTON A.JOHNSON, MANAGER and JENNIFER A. JOHNSON,MANAGER of JOHNSON FIVE
HOLDINGS,LLC,a Texas limited liability company,in the capacity therein staled\d mr\be\half of said company.
\\\\sP�P'qqq�� i J rJ
o ; - NOTARY PUBLIC,STATE OF TEXAS
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