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HomeMy WebLinkAboutResolution 2457., A Resolution ~ ~'~~ 7 AUTHORIZING THE CITY MANAGER AND THE CITY'S ATTORNEYS TO SIGN A SETTLEMENT AGREEMENT AND RELATED DOCUMENTS THAT INCLUDE THE NEGOTIATED TERMS AND CONDITIONS- WITH HILLWOOD DEVELOPMENT CORPORATION, THE CITY OF WESTLAKE AND OTHERS CONCERNING THE SETTLEMENT OF LITIGATION RELATED TO THE CIRCLE T RANCH AND OTHER EXTRATERRITORIAL JURISDICTION ISSUES WHEREAS the City Council of the City of Fort Worth desires to settle certain litigation involving the City of Fort Worth, various Hillwood entities, the Town of Westlake and other parties, such litigation being more specifically described in Exhibit 1 which is attached hereto' and WHEREAS Hillwood Development Corporation has made specific proposals to the City Council to settle such litigation; and WHEREAS the City Council desires to authorize the settlement of such litigation as hereinafter provided; NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT WORTH, TEXAS That the City Council hereby authorizes the City Manager the City Attorney and the attorneys representing the City in such litigation, to execute any and all documents necessary to settle the litigation in substantial compliance with the terms and conditions set forth in the following documents. a) A Settlement Agreement" that is attached hereto marked Exhibit 1 and made a part hereof by reference b) An Agreement to Provide Fort Worth Opportunity Center" that is attached hereto marked Exhibit '2" and made a part hereof by reference. 2. That as further consideration for such settlement, Hillwood Development Corporation shall do the following• a) Convey to the City at no cost, a tract of land containing approximately 3 acres located at the northeast corner of the proposed extension of Beach Street and S H 170 in the City of Fort Worth, such tract to be used as a site for a fire station and/or other public purposes CITY OF FORT WORTH b) Enter into a Memorandum of Understanding with the City concerning the conditions under which the City will agree to execute a Uniform Wholesale Water Contract with the Town of Westlake, such Memorandum of Understanding being attached hereto marked Exhibit "3" and made a part hereof by reference; c) Reimburse the City of Fort Worth for its expenses, including its reasonable attorney's fees incurred in connection with the litigation described in Exhibit "1 to which the City of Fort Worth was a party That the City Council hereby authorizes the City Manager and the City's attorneys to execute any and all documents necessary to implement the provisions of Paragraph 2 of this Resolution. 3 That the proposed settlement is subject to the execution of final documents acceptable to the City Manager the City Attorney and the City's attorneys in the litigation, and the City of Fort Worth will not be legally bound until such final documents have been executed. Adopted this~~ ~'Z1"ay of September 1998 `" ~~ '~ y ~~ ~-. -~ ;~ ~' ~ Mayor Secretary CITY OF FORT WORTH ,,M,~~SEP 29, 1998 3 14PM KELLY HART & HAI,I,MAN 817 8789280 NO 0245 P 3 ~~ ~ THlRO EETTLEMEINT AGREEM T ~ b/dR~'H V_~/~S~ON) DRAFCC 1. the Parties This 5ettlEment Agreement, Including ~Il exhlblts hereto, (the "Settlement Agreement"') Is made by and between the Town of Westlake, Texas ("Westlake', the City of Fort Worth, Texas ("Fort North") AIL In- vestment, L.P , Hillwood Development Corporation, Hillwood/Willow Bend, Ltd , Hillwood/822, Ltd ,Hillwood/1088, Ltd , Lakeway Land, Lkd end Lake- way Property Company, Ltd (collectively, '^Hillwood''), Scott Bradley ("Bradley"), Dale White ("Wh1te'~, AI Olen ("Olen"), Howard Dudley (Dudley"), Jerry Moore ("Moore"'); Carroll Huntress ("Huntress"), and the State of Texas by and through Tim Curry, Criminal district Attorney of Tarrant County ("State o~ Texas") 2. The Lawsuits The following lawsuits ere subject to this Settlement Agreement as provided herein (a) Cause No 17-169048-97 entitled Town of Westlake, Texas vs. City of Fort Worth, Texas, et a/., filed 1n the 17th ]udiciai District Court, Tarrant County, Texas. Fort Worth and Hillwood, as Intervenor, have ap- pealed, artid WesNake has cross-appealed, a Judgment In this cult by the trial court In favor of Westlake to the Second Court of Appeals under Case No 02-98-00047-CV (collectJvely, the'"Fort Worth Lawsuit'? EXHIBIT _~.--~------- --__ ..__.----- - ° 1 ~~ SZ0iZ00 d 009bLE----08~681~BGS8 W0~ 6Z 9t 866t-8z-d3S SEP 29 1998 3 14PM KELLY HART & HAI,LMAN 817 8789280 NO 0245 Y 4 ~~ ~ ~ (b) Cause No. 17-168763-97 entitled Scott BraOley vs. Carroll Huntress, et aG, pending in the 17th judicial ~iStNct Court, Tarrant County Texas (the "Huntress Lawsu~) 3. Beeolutiane of L cults The parties have conducted settlement negotiations in these nnatters and wash to compromise and settle and to .hereby resolve their differences without Incurring the uncertainties and additional costs incumbent in the Lawsuits. For good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by the parties, It is hereby agreed as follows (a) Th Fort Worth Lawsuit • 1 Westlake, Fort Worth and H[Ilwood consent, agree to the entry of, and direct their respective counsel to submit on their behalf to the Second Court of Appeals In Cause No 02-98-00047-CV, an "Agreed Or- der of Dismissal and Remand" of the pending appeal in the Fort Worth Law- suit in the form attached hereto as Exhltilt "A" to be filed with the Court of Appeals upon full execution of thts Settlement Agreement. 2. Upon remand of the Fort Worth Sult to the i7th lu- dl'cial District Court as descNbed in j(a)i above, Westlake, Fort Worth and Hlllwood consent, agree to the entry of, and direct their respective counsel to submit on their behalf, a "Reformed ]udgment" to the 17th ]udicial Dis- trict Court, Tarrant County, Texas for entry in the form attached hereto as E~ch7blt "B" .~r~,~.,r,. Apea 8Z0i~00 d 009bL~---08Z68L8LT8T O1 ~~ p~ gj ~t_8Z_~ r.~ SEP 29 1998 3 15PM KELLY HART & HALLMAN 817 878y18U Nu 0145 r ~ 3. Fort Worth and Hillwood hereby release any rights they may claim that the property described in E~chibit "C" is in the extra- terrltorial-jurisdiction of Fort Worth. (b)Th~ Hn r~~a..= Brad{ey shall instruct and direct his counsel to submit on his behalf, an Order o1~ NonSUit" In the Huntress Lawsuit in the form at- tached hereto as 16ch[bit "D" on the C~FFective Date of th[s Settlement Agreement. The parties agree to take all actions necessary to have the Court enter such non-suit end agree to refrain from further discovery or other proceedings in the Huntress Lawsuit pending entry of the Order of NonSUlt. • 4. Tie ReL~eaaes and Covenant Not to SuC Releases (~) Fn consideration of, the premises, mutual promis~s and covenants Contained herein, Westlake, Bradley, Fort worth, Millwood dnd release and ,, e forever discharge each other (other than as expressly reserved in this docu- ment), jointly and severally, each and all of them, of and from any and all debts, liabilities, claims, controversies, causes of action and demands of every kind and character whatsoever that they may now have against each other, civil or criminal, currently existing and arising out of any events or dealings between said partes, their predecessors, successors, assigns, af- flllates, elected and appointed officials, emptoyee$, consultants, agents and legal representatives prior to the execution of this Settlement Agreement In- - Dupe s 8Z0it+00 d 009tL£---08Z68GSLT8j Ol W021~ 6£ 9T 966Z-8Z-d~S SEP 29 1998 3 15PM KELLY HART & HALI,MAN 817 $789280 ~~ NO 0245 P b eluding but not limited to the issues, clairns, counterclaims, defenses and ai- • le ations which were raised or could have been raised in the Fort Worth 9. Lawsuit or the Huntress Lawsuit. It Is expressly agreed and understood that this release does not extend to White, Dudley, °Oien, Moore and Huntress who are addressed in ¶4(b) below and does not 1n any way affect the ability of the parties to assert or defend all tlairns, defenses and causes of action stated against the parties currently in the Quo Warranto Proceeding, South- lake ~.awsuit and Roanoke Lawsuit (except Hlllwood) based on the actions described in ¶4(c) below (b) Westlake, Fora Worth, H111wood, Bradley, White, Dudley, Hunt- ress, Moore and Oien release and forever discharge each other and their predecessors, successors, assigns, affiliates, elected oftlclaf5, employees, • consultants, agents and legal representatives ~olntly and severally, each and all of them (other than as expressly reserved herein), of and from any and all debts, liabilities, claims, controversies, pauses of action and demands of every kind and character whatsoever that they may now have against each other, civil or criminal, currently ex{sting and arising out of any events or dealings between sold parties prior to the execution of this Settlement Agreement except that Westlake and Bradley expressly reserve ail claims or defenses that may be asserted in the Quo Warranto Proceeding, the South- lake i.awsutt, the Roanoke Lawsuit or any quo warranto actions deriving from the same facts as tfiese cases In challenging the validity of the actions of White, Dudley, Huntress, Moore and Oien, vrrhether acting In their individual \ - saner, ~r. ~ • 8Z0iSB0 d d09bL£---@6Z68L8LS8T Ol I~g2l~ TE=9T 866T-8Z-d35 SEP 29 1998 3 15PM KELLY HART & HALLMAN 817 8789280 NO 0145 r i or official capacities, reiated to the purported dlsannexation of Westlake lands or the purported removal of Bradley as mayor of Westlake (c) Bradley, Daie White and the State of Texas reserve the right to assert and prosecute, against the current partiLSS to that case, all claims made i~n Cause No 97.13.35 (the "Quo 1Nsrranta Proceeding") currently pending before the Texas Supreme Court; Westlake reserves its rights to as- sert and prosecute all of its claims (including witfiout limitation all chal- lenges, whether claims or defenses, to the validity of the actions of Dale Wfiite, AI Ofen, Jerry Moore, Carroll Huntress and Howard Dudley (the "Former Aldern~ten") and former town officials), against the current parties to that case, in Cause No. 17-159049-97 entitled The Town of Westlake vs, The City of South/aloe currently pending to the 7th Judicial District Court Tarrant County, Texas (the "Southtake I.aw~uit") and Westlake reserves its rights to assert and prosecute a1i of its claims (including without limitation all ch811enges, whether claims or defenses, to the validity of the actions of Dale White, the Former AlderFnen and the former town officials), against the current parties to that case+ (except Hiilwood), in Cause No 97-50150-367 entitled City of /Zdanoke and Hlllwood Development Corporation, Hill- wood/4Yillow Bend, [.td., Hl//wood/822, Ltd., Hll/wood/s D88, Ltd , takeway Land, Litt, and Lakeway Property Company, Ltd, vs. Town of Westlake Cur- rently pending [n the 367th judicial District Court, Denton County, Texas and Cause No. 97-40344-362 entitled Town of Westlake vs, City of Roanoke (collectively, the NRoanoke Lawault"), all such rights being hereby re- •~~ w~ ~ 5 ®~i900 d 809b1.F---08Z68LQGt8t Ol WOZI~ t~ 9T 866T-82-d3S _... . SEP 29 1998 3 15PM KELLY HAKT & HALLMAN ~lr EiE9l~U Nu UL4~ r ~ served to those parties and not being affected by this release All parties acknowledge that neither SCOtt Bradley nor any other party to this Agree- ment, makes any admission regarding the validity of the purported removal of Bradley as Mayor of Westlake on April 1997; acid neither Scott Bradley nor WeS~lake are precluded by anything herein from asserting the Invalidity of such removal In any pending litigation irivolving the City of Southlake, the Town of Roanoke, or in the Quo Warrant0 Prooeedtng Covenant Not to Sue (d) In exchange for the releases contained fn ¶4(b), Millwood, Fort • Worth, Bradley and Westlake, and their predecessors, assigns, successors, affiliates, elected officials, employees, consultants, agents and legal repre- sentatives agree that none of them shall assert or pursue against White, Olen, Dudley, Moore or Huntress any current or future cults, actions or legal Claims of any kind based on the conduct made the basis of claim In the Fort Worth Su1t or the Huntress lawsuit or any other conduct, act or omission oc• curving prior to this Agreement (subject to the reservatipns in ~4(c~above) Indernn/t/cat/on (e) Each party executing this Agreement will indemnify and hold harmless any other party which it has either released or covenanted not to • sue in this Agreement from any liabilities, cosl~s, and expenses (including reasonable attorneys' fees) Incurred by such other parker as a result of any suit or cla4m based on a claim which was released or for which a covenant not to sue was executed which is commenced, joined 'or prosecuted by such patty against such other party after tfie effective date hereof In addition, S~'T/f.6~160/- . ^ipl X/Jt6aaySY16 i41pe 6 Bz0/L00 d 809y1.£-08Z681,BGi6t 01 WOZI~ ~ 9Z 86Cti-gz-d3S ~,._.SEP 29 1998 3 16PM KELLY HART & HALLMAN 817 8789280 NO 0245 Y y Vtlestfake wiil indemnify and hold harmless White, Dudley, Olen, Moore and • Huntress from any liabilities, costs and expenses (including reasonable at- torneys' fees) relating to any suit or claim made against them (whether currently or In the future) by Westlake, Bradley oi• any citizen of the Town of Westlake In the Southlake lawsuit, the Roanoke Lawsuit or any quo war- ranto proceeding deriving from the same facts as these cases. Addifiona/ Releases (~ In addition to releasing and d)scharging each other pursuant to Sections 4(a) and (b) of this Settlement Agreement, the parties to this Set- dement Agreement also release and forever discharge the following of and from any .and all debts, liabilities, claims, controversies, causes of actions and demands of every kind and cf~aracter whatsoever tv the same extent that said parties release each other pursuant to this Settlement Agreement• (i) Fort Worth; (II) Public Strategies, Inc., (iii) the predecessors, successors, assigns, affiliates, elected and appointed offlctals, employees, consultants, agents and legal representatives of ail parties to this Settlement Agreement (Including, without limitation, Goins, Underkofler Crawford & I.angdvn, Hughes & Luce, Kelly, Hart & Hallman, Luce 8~ Williams, Paul Isham, Freilich, Morgan, Lehner & Carlisle, Tent' Morgan & /lssoclates, Cooper & Scully, Naman, Mowell & Smith, Haynes & Boone, Philips, Hopkins, Eames & Cobb, and Llttie, Pedersen, Fankhauser a< CoX) This paragraph does not apply to White, Moore, Dudley, Qien and Huntress who. are addressed in paragraphs 4(b), 4(c) and 4(d) hereof - •~ .~~ ~~ 6Z0i600 d 009v1.E---06'L66G9Lt6t 01 ~l~ Z£ 9t X61-ez-d3S SEP 29 1998 3 16PM KELLY HART & HALLMAN 817 8789280 NO 0245 P 10 ~.~IV b • 5. Hil(~Qod const~e,;afion to~ort wct~h Attached 'hereto as E`xhiblt "E" are documents Chet outline the add1- tionai agreements between Fort Worth and Hiilwood as part of this settle- merit. 6. Q~ier Litigation The Town of Westlake w111 not voluntaNly resolve any pending litigation with the City of Roanoke or City of Southlake ~in a manner which results in any Land which was purportedly disannexed front Westlake Tn May, 1997, being within the corporate Itm1t5 of the City of Roanoke or the City of South- iake (except potentially land that was the subject of dispute before May, 1997) 7 Quo Warranto. i~osts White, Bradley and the State of Texas hereby agree that none of them will attempt to execute on or pursue coilectton of any costs and attorneys' fees levied against the other by the trial court, appellate court or Supreme Court i~n the Quo Warranto Proceeding Th1s Agreement expressly reserves, and is made without waiver of, any and ail other rights the parties may have In the Quo Warranto Proceeding • sEr~rr,,•~rr~ . warrH a.~sarQ,~a oro. ~ 9Z0i600 d ID09f~1~-r-eSZ68L8Lj6T 0.1 W021~ ~ 9T 866Y-@Z-d35 ..... _ . SEP 29 1998 3 16PM KELLY HART & HALI,MAN 817 8789280 8. 4~r Reoreeentatiohs of ~ ~artlea~ NO 0245 P 11 (e) This Settlement Agreement Is purely and simply a compromise to avoid expending further time and expense in this matter and does not con- stltute an admission of liability by any of the partlirs (b) each party represents and warrants to all other parties hereto that such party has not assigned or conveyed any interest or right in and to any of the claims or causes of action Covered by this Settlement Agreement or Intended to be Covered by this Settlement Agreement and that all such claims are owned by the respective parties. (C) No term or provision of this Settlement Agreement may be changed, waived, discharged or terminated orally, but only by an Instrument ~in writing $lgned by the party against whom the enforcement of the change, waiver, discharge or termination is sought. This Agreement and the exhibits .referred to herein contain the full, final, and exclusive statement of the agreement between the parties Thls Agreement and the covenants and agreements contained herein shall be binding upon, and inure to tie benefit of, each party and each party's respectJve afAllates, related entities, succes- sors and assigns. (d) This Settlement Agreement shall be governed by and construed In accordance with the laws of the State, of Texas and any action for the en- forcemeat of this Agreement shall be brought In Tarrant County, Texas. (e) The undersigned parties further state that they are fully compe- tent and authorized to enter into this Settlement Agreement, that they have V sE.nr~rr.s+~rr,.,rv,; woa~nr ~s SZ0i0T0 d 009bL~-08~68L8LT81 Ol k~I~ ~£ 9i B66T-8Z-d35 5EP 29.1998 3 16PM KELLY HART & HALI,MAN 817 8789280 NO 0245 P 12 ~.... carefully read the foregoing Settlement Agreement and know the contents • thereof and that they have executed this Settlement Agreement of their own free will for the purposes and considerations stated herein (f) `Che parties further warrant and represent that, where necessary, all corporate, munic[pal and governmental consents.requlred for any party to execute this Settlement Agreement have been obtained (g) Prior to the execution of this Agreement by each such party, such party has fully informed themselves as to the terms, contents, provi- slops and effects of this Agreement, and all facts and conditions sufficient and necessary to the decision to execute this Agreement. (h) No promise or representation of any k[nd has been made to that party or his representative by any other party or his representative except as expressly set forth In this Agreement and as made in any agreements executed contemporaneously with this Agreement. (1) Such party is nvt relying on any oral understandings, oral repre- sentations, or oral agreements of any kind or on any other matter not ex- pressly stated In this Agreement and any such reliance would be• unintended by the other parties and otherwise unreasonable and unjustifiable. (i) Thls Agreement shall remain in all respects effective and not subject to termination, modification or rescission by any difference In facts or circumstances hereafter occurring, becoming known or becoming known differently • 8Z0/TT0 d O99taL~---O8Z68L9L.t8i O.L I.g21~ t~ 9T 8662-8Z-d3S SEP 29 1998 3 17PM KELLY HART & HALLMAN 817 8789280 NO 0245 P 13 _.~ (k) This Agreement constitutes a valid, binding, and enforceable ob- • II ation of that a its terms are lawful and fair, and It constitutes an equi- 9 p ~Y, table settlement of their differences. (I) The parties hereto further acknowledge that they have had the opportunity to seek independent legal counsel. to advise them of their rights under this SetNement Agreement and that no party hey relied upon the ad- vice of counsel' for any other party to entering into this Settlement Agree- ment. 9 If any patty to this Agreement bNngs su(t to enforce any right or obli- gatlon under this agreement, the prevalltng party shall be entitled to recover its expenses, including reasonable attorneys' fees, incurred in connection . with that action 20. In alt Instances to which a parly to this Agreement is required under this Agreement to do any ack at a particular time or within a particular period of time, time is of the essence in the performance of such act. -- 11. Each party represents that such party has substantial experience to negotiating contracts and has obtained any advice of counsel which that party wished to obtain, that this Agreement is the product of negotiations among the parties, and that, therefore, no party to this Agreement shall be charged with having promulgated this. Agreement. ~ ///, 1W~7M V6L9~IOAf/1a.RYl/Q!M Ydipe Il 8Z02t0 d 009bL£---08Z68L8Lt6T Ol b1021d b£ 9t 866T-ez-d~S SEP 29 1998 3 17PM KELLY HART & HAI.I,MAN 817 8789280 ,f~~.~ NO 0245 P 14 iZ. This Agreement may be executed in multiple counterparts, each of~ • which 5ha11 be deemed aci original for all purposes, and all of which together shall constitute one [hstrument, • sErru,~rrwa~.arr~r,, woRra 8Z0i~i0 d 009bL~--fl8266L@LT@Z Ol WOzI~ S£ 9Z 866T-8Z-d35 SEP 29.1998 3 17PM KELLY HART & HAI.LMAN 817 8789280 NO 0245 P 15 ._.. TOWN OF 1NE5TLAKE, TEXA~~ By itS, CITY OF FORT WORTH, TEXAS By- Its - air. INV~sTM~NT, [..P., NILLWOOD DlyELOPMrNT CORPORATIOIr, HILLW000/WILLOW BEND, LTD., HILLWOOD/811, 'LTD., HIlLW000/1068, LTD, L11KE1NA'T LAND, LTD. and WKEWAY PROP~RtY COMPANY, LTD. By Its, SCOTT BitADLEY DALF 1KHITE AL OIEN ~ERRV MOQRE '_ sET.~cir..~Err~rr~ r•c..a~.~ 8Z0ibZ0 d 009bL~---08Z68L8LS8t Ol Id0?,~~ S~ 9T 866T-BZ-d3S SEP 29 1998 3 17PM KELLY HART & HALLMAN 817 87E9280 NO 0245 P 16 .,._. HOWARD OUDLEY s CARROLL HUNTRESS THE STAT'~ OP TLXAS By tint Curry, District Attorney, Tarrant County serce~.arr•~.~errt~+riFS v~+aw~•~m,vs~.c ~ :. B~~St®d ~69bL£-~BZf,$1,8LT8T Ol WOLId S£ 9t 866T-8Z-d3S ._. SEP 29 1998 3 17PM KELLY HART & HAI,I,MA1V 817 8789280 EX~iiBI~' "A" NO 0245 P 17 AGREED ORDER 'OF DISMISSAL AND REMAND FORT WORT~W SUIT • C7 ~. .~ SZ®i9i0 d 009bLE-~-08Z6@LBLtiBS Ql WOa~ 9~ 9t 8661-@2-d~S SEP 29 1998 3 17PM KELLY HART & HAI,I.MAN 817 8789280 NO 0245 P 18 .....-. No. a2 98-0oo4~-cv • SECOND COURT OF APPEALS DI6TRICT OF TEXAS THE C1TX OF FORT WORT, TEXAS, AILLWOOD DEVEY.OPM>~NT CORPORATIOl~f,13~LWOOD/WILLO~V BEND, LTD., ffitWOOD/82Z, LTD., HII,LWOOD/t088, LTD., LAKSWAY LArTD, I,TD, sad LAKEWAY PROP$RTY COMPANY, LTD., AppallaatslCro ss-Appellees, Y TOWN OF WE3TLAI~., TEXAS, AppelleelCro ss-Appellant. On Appeal Prom Ttie 17th Judicial District Court Tarrant County, Texas (Cause No.17-1690~8~9~ AGREED ORDER bF DISNIISSAL AND REMAND On this the day of Septetaber~ 1998 came on to be heard Appellee The Town of Westlake, Teatas ("Westlske'°), Appellant the City of Part Worth, Texas (Fort Worth") and Appellants Hillwood Development Corporation, HiUwood~llow Band, Ltd., HiliwoodJ822, Ltd., I3illwood/1088, Ltd., Lakevvay Land, Ltd. and Lak+cway Property Cor$pany Ltd. (`~Sillw-ood"), by and through thbii respective atbvrneys of record and anaouncad to the Court that they have frilly setifod and compromised all disputes between them arising out of this lawsuit and requested that this Court dismiss this appeal and r~eanaad the case to the 17th Judicial District Court, Taarsnt County, Texas fo= entry of a reformed judgment in accordance with the parties. ag~eemeat 'I~o Court having wnsidered tine settletneut between Westlake, Fort Werth and ,.ac.ewa,. ~~ I~'A" r~ 8?AiLTO d 009dL£-06Z661.6Zt9T Ol WOZI~ 9£ 9t 866ti-9z-d~S SEP 29 1998 3 17PM KELLY HART & HALLMAN 817 8789280 NO 0245 P 19 _... • Hillwood and being fully advised in the premises, hereby snakes the following judgments, orders and decrees; it is t)~ere£ore ORDERED, ADJUDGED AND DECREED that this appeal is dismissed gad the case is re:aanded to the 17th Judicial District Court, TarfaaR l^,ounry, Texas for entry of a reformed judgment in acwrdance with the agreement of the parties; it is futther ORDERED, ADJUDGED AND DECREED that the parties shall be responsible for their own ousts and attorneys' foes for this appeal, it i$ further ORDERED, ADJUDGED AND DECREED that all xelief not expressly granted herein is denied. Signed this _ day of September, 1998. • APPROVED AS TO FORM AND SUBSTANCE: E. Tsldridge Goias, Jr ' James W Morris, Jr Jeffrey S. Wigder "~~ GOINS, UNDERKOFLER, CRAWFORD d~ I.A.NGDON c Registered Ll~tlkd t fabilfly Pa'meril~ip 1.601 $Lm Street, Suite 3300 Dallas, Texas 75201 (214) 969-5454, (214) 969-5902 (Faac) Attorneys for Appellee THE TOWN OF , TEXAS • "~.. 8Ze~8z0 d 009~L~-08z68z,9btBT Ol WQ~id 9£ 9t 8661-8Z-d3S SEP 29 1998 3 18PM KhLI,Y HART & IiALLMAN ill ~(~yl~U .,...... Donald E. Herrmann Dcc J. Kelly, Jr KELLY, HART & 201 Main 5t., Suite 2500 Fon Womb, Tex 76102 (817) 332-2500; (617) 878-9280 (Faxa Attorneys for Appelannt CITY OF FORT W0818, TEXA3 David Bryant HUGSES & LUCE 1.717 Main St, Suite 2800 Aallas, Texas 75201 ('214) 939-5500; (214) 939-6100 (Fax) • Attorneys for Appellants HILLWOOA DE~'ELOP11'~NT CORPORATION, SII.I,'WOODlVVILLOWGEND, LTD., ~.LWOODI8Z2, LTD., ~LWOOD/l088, L?D., I.AI~WAY LAriD, LTD. and LAI~WAY PROTER'Y'Y COINPANT~, LTD. ~~ ., .4.,- NU UL4U r CU nagMA~ ~\~ IT rA~ ~' SE0i6T0 d 009bL£---98Z68G6LT8i Ol W021d L£ 9t 866t-8Z-d3S _. ~` SEP 29 1998 3 18PM KELLY HART & HA1.I.MAN 817 8789280 NO 0245 P 21 ~~HIBIT "B" ~2EFORMED ]UDGMEr11T FORT WORTW SUIT ~4 8z0i0~®d 009bLF---08Z68L8LT8T Ol WpZI~ L£ 9t 866t-8Z^d3S SEP 29 1998 3 18PM KELLY HART & HALLMAN X11 ~1~9Z8U 1~0. 1?-169048 97 • TO~TN OF WS~TLAKE, TF~IKAS, ~. 3 5 g NU UL45 Y LL IN THE-DISTRICT COURT ~ainti!'F, VS. CITY OF FORT WbRTH, TERAB, petbndaat, aad FIILLWOOD DEVELOPMERT CORPORATION, 1TILLWOOD/ Wxi-LOW 8E1~tD, L1'D., HiLLWOOD/ 882, LTD., HTLLWOOD/ 1088, LTD., LA~WA~ LAND, LTD. sad LAKEWAY PROPERTY COMPANY, LTD., Intesvenosa. • TARRAl'~T COUNTX, T$XA~ 17TH JUDICIAL DiBTRIC'c R~i~'OYtMED JUDQMENT On this the day of September 1998 came on to be heard Plaintiff fine Town of Westlake, Texas (`~estlake") Defendant the City of Fort 'OVorth, -N• Texas ("Fort Worth'°) and intervenors Hillvp'ood Development Corporation, Hillwood/WiIIow Bend, Ltd:;-Hillwood/822, Ltd., Hillwood/1088, Ltd., Lakeway Land, Ltd, and Lakt~ray Property Compar;Y, Ltd. (~Flill~voad'~, by and through their respective attor~ncys of ra:ord end announced to the Court that they have ~f~Ily settled amd compromised ali disputes between them arising out of this lawsuit end requested that the Court vacate the ,judgment enteredara this mat- ter on Februtasy 13, 1998 aid enter this final judgment in accordance arith ttie • parties' settlement ag~^eement; it~is therefore ,,~ r 6Z0iZZ9 d 009bL£---~68L8Lt9t O1 W0~ld L£ 9S A66ti-8Z-dSS SEP 29 1998 3 18PM KELLY HART & HAI,I.MAN 817 8789280 NO 0245 P 2~ .• w ORDERED, AD~TUDGED AND DECREED that the Judgment entered in • this case on February 13, 1998 is hereby vacated, it is fv-rther ORDERED, ADJUDGEb •AND DECREED that purported disar~nexations and releases of extraterritorial jurisdiction of the property described in Eash~bit "A" are riuII and void ab initio; it is further ORDERED, ADJUDGED` AND DECRl~$D that aU, properly described-in ERhibit "A" is and at all times sine May 2, 1997 has been withui the corpo- rate limits of Westlake; it is further ORDERED, ADJVDQED AND DECREED that all claims and daf'enses asserted in this case other than those rrlat~cd to the adjudicatron herein that the property described in F,?thibit "A" is in the corporate limits of Westlake, are dismissed without prejudice to refiling the same; it is further • ORDERED ADJUDGED AND DECREED that the artier shall be re- P sponsible for their awn costs and attorneys' fees; end it is further ORDERED, ADJVD4ED AND DECREED that this judgment is nonap~ pealable. All relief not expressly granted herein is denied. _.- Signed this __ day of September, 1998 JUDGE PItES~~NG- ~•~ '~ _~ ~ S1~BS'B' 6Z0i~B d e09bL£---08Z68L8LTST Ol WObd B~ 9t 86ft-8Z-d35 SEP 29 1998 3 18PM KELLY HART & HAI,I,MAN 817 8789280 NU 0145 t' L4 ~.. APPR4vED AS TO FORM AND SUBSTANC$: • E. Eldtidge• Goiz~a,, Jr James W Morris, Jr. Jeffrcp S. Wigdes Ga7NS, UNDERI~OFL$R, CRAWFORD da L/iNCiDON a Regtsterrd Limited Liabfh'ty Partnersidp 1601 Elm Street, Suite• $300 Dallas, Texas 75201 {214) 9695454 (214) 969-5902 (Fax) Attorn.eye for Plaintiff TOWN OF t~ESTLARE, TEXA6 Doaaid E. Herrmann . Dee J Keltp, ,rr KELLY, H~IKT 8; ~3ALLMAI'i 201 Main St. Suite 2500 Fort Worth, Texas 76102 (81?) 332-2500; (817) 875-9280 (Fax) Attorneys for Defendant CI'!'7C OF FORT W07tTH, TEXA6 • David Sryantt fIQQHP~s 8s LVC,'E IT1? Mein St., Suite 2800 Da11as, Texas ?5201 (214) 939-5500, (224) 939-6100 (Fast) Attorne~-s for Iabeavonora ~LWOOD DEYLI~OP~'l~iT-Cd7tpORATZO~, 73ILLWOOD/W~LO~P SEi~D, LTD., >7~LLWOOD/dZ~, LTD., ffi4LS~tOOI'1•/7,088, Ll'D., LAKgWAY L!~l~TD, L?D. and LAS?~WAY PRaPERTY COMPA1fX,~'D. ra.era+s E II''8' ezei£z0 d 009bZE-~9Z681,8LL8Y 01. WOtI~ 6£ 9ti 8662-8Z-~S _,~ SEP 29 1998 3 19PM KELLY HART & HAI.I,MAN 817 8789280 NO U14~ r ~ XH ~_BIT "C" LEGAL DESCRIPTION OF DISANNEXED LAND SUBaEC1' ~OF FORT WORTH SUIT 6 c~ Y~• ~r ~~.. ~ L ~.~ 8Z0~Z0 d 009b1.E-88Z68L6LZ8Z Ol W02~ @~ 9T 666T-8Z~d3S ~..._ • EXHIBIT "D" _~.___ O~tDER OF N'O~NSIJIT HUNTRESS SUIT SEP 29 1998 3 19PM KELLY HART & HALLMAN 817 8789280 NO 045 P Z6 .~ ~~ r 6z0i520 d 009VL~---08268L6LTST O1 6£ 9ti 866T-S2-d3S SEP 29 1998 3 19PM .., SCOTT BRADLEY, Plaintiff, V5. KELLY HART & HALLMAN 817 8789280 NO. 17.•168763-97 CARROLL HUNTRESS, HOWARD DUDLEY, ]ERRY MOQRE and AL OTLN, oefendant~. NO 0245 P 27 § IN THE DISTRICT COURT § TARRANT COUNTY, TEXAS § ` § 17TH DISTRICT COURT o_ Rp~gL~rvoN~susT 'On this the day of September, I998 came on to be heard PlaintifF Scott Bradley ("6~adley"), by and through hts attorneys oP record and announced to the Court that he wishes to non-suit his claims in this case without prejudice to the refiling of same and requested that the Court enter this order The CourC, having considered the settlement and being fully ad- vised In the premises, hereby makes the following judgments, orders and degrees, it is therefore ORDERED, AD7UDGED AND DECREED that all claims stated by Plaintiff In this case are hereby nan-suited without prejudice to the refiling of same it is further ORDERED, ADJUDGED ANO DECREED that the parties Shell be re- sponsibie for their own costs and attorneys' fees, it is further ORDERED, AD]UDGED AND DECREED that all rel(ef not expressly granted herein Is denied • ~ - aQOE~t oP Ac~surr :ao,e+var.r . E]LHIBl r "D" ~w. ~ 8Z0/9z0 d 909bL£---06~6gG8LTgT Ol ~I~ 6'~ 9T 866-8Z-cl3S 5EP 29 1998 3 19PM K1;1,LY HART & HALLMAN Ali ~ia9lEU tuu UC~S r Lb ,.~ . Signed this _____.,, day of September, 1998 7UDGE PReSiDi1VG e OADEN Or NAM~SL7T f7rl.~f/~ ~=BLT ~G~ ~ 8Z0iLZ0 d 809bLE-08266L6LTAZ Ol WO`c!d 6£ 9T 6b6T-6Z-d3S ~SEP 29~1998~ 3 19PM KELLY HAK'1' &~HALLMAN X11 ~i~y1~U NU UC4~ r ~y r EXHIBIT "E" NILLWOOD CONSIDERATION TO FORT WORTH .. [TO BE SUPPLIED BY HUGHES 8c LUCE~ -_ ,. 8z0i8Z0 d 009bLE---~~,gLtgt Ol ~d 6~ 9t 866L-9z-d3S 09/18/98 14 56 FAX 817 224 6060 HILLWOOD DEVELOPMENT WHEREAS the City endozses the creation of and supports the Center as provided in this Agreement: NOW THEREFORE for and in consideration of the mutual benefits to be derived from the Center Hillwood and the City agree as follows 1. Opportunity Center Entity: Hillwood, at its expense, wall form an Internal Revenue Code § 501(c)(3) entity (tl~e "Onaorturiity ,enter Entity") that will own and operate the Center pursuant to articles of incorporation and by-laws similaz to those attached hereto as Exhibit B. It is contemplated that the Opportunity Center Entity will he governed by anise-member boazd of directors, consisting of six members representing the private sector entities providing financial support for the Center and three members from the general community Initial members of the board of directors will be asked to commit to serve for a muumum of three years Idillwood will provide one of its employees to serve on the board of directors. It is contemplated that the Opporhwlty • Center Entity will organize an advisory committee consisting of human resources directors of several diverse regional employers, which committee will have the responsibility of establishing and consulting on an on-going basis regarding an operations and training format for the Center and standards of performance that reasonably can be expected to be achieved as a means of measuring the long term success of the Center 2. Site Acquisition. (a) Hillwood, through its affiliate bTillwood investment Corporation, has d contracted tv purchase the real property and improvements commonly known as the former Anderson Labs" facility containing approximately 3 6 acres of land and a building of approximately 66 000 square feet, and being more particularly described on the attached Exhibit C (the Anderson Site) The purchase puce for the Anderson site is approximately $600 000 Hillwood has completed a satisfactory preluninary due diligence investigation of the Anderson Site except for envitomnental assessments currently underway if the environmental assessments do not reveal any environmental • conditions on the Anderson Site that will require material envuorun,ental remediation, lpJ UUL Page 2 09/18/98 12 O1 FA% 817 224 6060 FIILLWOOD DEVELOPMr.iv'1 ~ uu.~ • Hillwood will (i) purchase the Anderson Site as promptly as reasonably possible (subject to pcrfonnancc of the seller under the contract) in accordance with such purchase contract, and (ii) will convey the Anderson Site, for no consideration and free and clear of all monetary liens (other than the lien for current taxes) to the Opportunity Center Entity (b) Hillwood acknowledges that the Anderson Site may not be large enough to accommodate the future needs of the Center if the Center is successful m meeting financial and trainuig goals Consequently, Hill~uvood shall provide For the Opportunity Center Entity the opportunity through a separate agreement, to acquire the approximately seven-acre site adjacent to the Anderson Stte generally shown on the attached Exhibit D. (c) IF the environmental assessments of the Anderson Site are not satisfactory to the City and Hillwood, or if Hillwood is unable to close its purchase of the Anderson Site due to the default of the seller under the contract, Hillwood and the City will identify a mutually acceptable and reasonably conoparable alternate site for the Center (the • "Alternate Site"), and Hillwood will acquire the Alternate Site (assuming an environmental condition acceptable to tine City axial Millwood and performance by the seller thereof) and will convey the Alternate Site to the Opportuntty Center Entity in lieu of the Anderson Site. The level oP I"mancial commitments of Hillwood set forth m Phis agreement would apply likewise to the Alternate Site. 3. ihitial )Cmprovemez~ts. If the Anderson Site is acquired, Hillwood at its cost, will refurbish, furnish and equip the existing building as the initial phase of the pro]ect, substanrially in accordance with the scope desenption and capital budget ~ ~ reflected on the attached Exhibit E The cost of the initial phase unprovements is ~ ~ estunated to be approxnnately $800,000 Hillwood well complete such work with due diligence, with an estimated completion date of August, 1999 Page 3 09/18/98 1L U~ 1~AX 817 214 tSUKU HILLWOOU llhVhLOYALt.iVl • 4 Other Hillwood Commitments. (a) Planning and Construction Management: Hillwood, will be responsible for the initial master planning and management o.f the construction of the initial phase irriprovemenl's Hillwood shall not ehazge any fee for such services. (b) Executive Director: Hillwood, will engage a national search firm to identify the most highly qualified candidate to be employed by the Opportunity Center Entity as the executive director for the Center Hillwood will pay the placement fees ehazged by such search firm. (c) Financial Support: Hillwood will coordinate the endeavor to obtain a broad-based private sector financial support to establish an endowment fund sufficient to provide funding for the operation of tl~e Center on a long-term basis. The five-year tazget for the endowment fund is $5 000 000 Hillwood s management of this endowment campaign will allow the Center s executive director to focus pnmarily on the successful developinenl and management of the operations of the Center rather than on significant (d) Operation and Administration. Attached hereto as Exhibit ~' is a 5-year annual operating budget for the Center (the "Operating Budget") Hillwood, for a period t '~ "' of five years after the opening of the Center will fund the difference between (i) 7 ' > operating revenues of the Center and endowment fund revenues, and (ii) the actual operating costs of the Center, up to the budgeted costs amounts reflected in the Operating Budget. It is anticipated tliat at the end of the fifth year of operations, the Center's board of directors, after confemng with the City and Hillwood, will evaluate the success of the Center and determine whether or not the Center s prospect for future success is viable, and if so develop a strategic business plan for the next filve years If the board • fund ratsing_ Hillwood will contribute $100 000 toward this endowment fund. It is ,; contemplated that the prvate sector employers utilizing the services of the Center will pay appropnate Fees to the Opportunity Center Entity with the goal that ultimately those fees, together with the earnings from the endowment fund, will be sufficient to fund the on-going costs of operating the Ceziter ~uuo Page 4 09/18/98 12 02 FAg 817 224 6oBo HILLWOOD DEV"ELOP9fENT moos • determines that the Center should continue operations, and the endowment fund, at that time, has not reached the above stated fivc~year target amount at the end of such five-year period, Hillwood, at its election, either will fund the shortfall in such endowment fund or ~ continue to fund operating shortfalls (pursuant to a second five-year budget reasonably approved by Hillwood) up to an aggregate amount after such fifth yeaz of $1 000 000 It is contemplated that the Centers board of directors, following such initial five year operation period, after confemng wrath the City and Hillwood will conduct annual reviews of the Center s operations and results in order to determine whether or not to continue the operation of the Center (e) Training: During the first five years of operation of the Center Hillwood will coordiriatc the rela.tionshtps between the CeilteT and institutions (referred in the attached Exhibit A) that will provide the training and employment placement assistance for prospective employees utilizing the Center in order to develop tratnttig programs that will be complimentary to programs operated by similar organizations • (f) Publicity: Hillwood will publicize the Center and its ro ams to laz e P gr g employers within the region. 5. City Commitments. The City sl~all provide such general support as reasonably possible to enhance the opportunities for success of the Center it being understood that the City is not making any comrnitments iii this Agreement to furnish any financial support of the Center Specifically the City will incorporate into its overall economic development strategies support of the Center's activities and funding by those seeking to participate in economic development incentive programs sponsored by the city 6. Miscellaneous. (a) This Agreement shall be governed by the laws of the State of Texas may not be amended except pursuant to a document signed by both the City and Hillwood, ., Pabc 5 09/18/98 12 02 FA% 817 224 6060 HILLWOOD DEVhLUYMhN1' • aztd x».ay nvt be assigned by either party without the consent of the other party Venue for any l~tigat~on pertaining to this Agreement will be in Tarrant County Texas. (b) This Agreement !s being executed as part of the consideration to the City re)ahve to the settlement of the pending Junsd~chonal dispute with the town of Westlake, Texas EX$C~(JTED TO BE EFFECTNE AS OF THE DATE FIRST ABOVE WRITTEN Hillwood Development Corporation By. Title The City of Fort Worth Texas By. T~tle- • • ~uui Page 6 09/18/98 12 0~ f~AX 817LL4 6oKU H1LLriuuL L1=.VhLUYm>r~vl ,~ EXHIBIT A FORT WORTH OPPORTUNITY CENTER Concept. Hillwood Development Corporation will act as the master planner and developer of a state-of--the-art training and life skills development facility on the southeast side of Fort Worth through the development of a greenfield project and the rehabilitation of an existing facility Whsle 1~ort Worth has experienced remarkable econorruc growth, not all segments of its populafion have shazed in that pTOSpenty The training and life skills campus, called the Fort Worth Opportunity Center, will insure that those citizens of Fort Worth are prepared for the jobs of the 21`` Century and have the vpporl'unity to achieve economic self-sufficiency and produetlve caree~~s. Drawing on the experience of the Alliance Opportunity Center the new Fort Worth Opportunity Center will combine the efforts of both the private and public sector The Fort Worth Opporttuuty Center will connect corporations with employment needs and inner city fob candidates. The Opportunity Center will providE on-site training In areas such as computer stalls, materials handling, semiconductor manufacturing, child care and other customized programs to meet the nt:cds of candidates and employers- Add~fionally the Opportunity Center will offer personal developuiezat courses in areas such as personal finance in order to assist the candidates m balancing the challenges of managing a career and a family Proiect Description. The first phase of the Fort Worth Opportunity Center will be comprised of a multa purpose building that will house the following- • Adrriinistrative Offices • Ilifonnahorr Center • Classroom Space • Computer Lab • Manufacturing Training Lab Future phases of the campus development may include • Child Development Center • Personal Development Center • Simulated Assembly /Manufacturing Space • Interim / Pennaneni Housing FWOC CONCEPT EXH1BlT A 09/18/98 11 03 r~ax 817 11~i tiutiu H1LLnUUL UhVhLUk'p1r,,V1 Sulu EXHIBIT A Services Provided. • Training Education and Assessment • Linking Employers and Job Candidates • Information Services • Prenatal and Childhood Development Services • Transportation Example Program Participant. The Fort Worth Opportuzttty Center will specifically target services and trauung .for those individuals in the Fort Worth community who are considered to be in high risk categories or are coristdered to be under-served at the current time. The Oppoz'h.inity Center will provide on-site a full range of services to the commtinaty through its partnerships with service and training providers. • Atypical participant would either be contacted directly by outreach efforts of the center and its partners or come into the zziformai~on center on campus. After an introduction of services and training opportt>.iiihes, time will be spent idenhfyitng the client's goals and zaeeds Training candidates will be matched with fob openings and training programs associated with those openzz-gs. In addition, trainees personal issues wi116e addressed Goals include Li.riking participants with compensation and benefits while they are learntnig Providing job placement pnor to tr'ainirig completion Providing education services to pazticipants aimed at creating stronger families and addressing early chi Idliood development issues Addressing participants housuag and transportation needs • FWOC CONCtY'1' EXHIBIT A ua~ls~a~ ie u~ rab iii zz~ oucsu H1LLrruuL LhVhLUYAlr.ivl EXTiIBIT B ARTICLES OF INCORPORATI(5-N OF FORT WORTIi OPI'ORT[J1YIT~C CENTER I, the undersigned natural person, being of the age of etghteen (18) years or more, acting as incorporator of a corporation pursuant to section 3 OI of [he Texas Non-Profit Corporation Act, do hereby adopt the foitowing Articles of Incorporation for such corporation_ ARTICLE O1~IE The name of the corporation xs FORT '4VORT1':I OPPORTLInTITY CENTER ARTICLE TWO The corporation is a nori-profit corporation. ARTICLE THREE The Corporation is to have perpetual ex:rstence. ARTICLE FOUR ~l u 1 1 1 The Corporation is orgazri7.ed and shall 6e operated exclusively fvr chaatable purposes (whiich shall 6e deemed to include reiigious, charitable, scientific, literary or educational purposes, or the prevention of cruelty to children or aniinais, within the meaning of these terms as used in sechvn SOI(c)(3) of the Internal Revenue Code or the corresponding provisions of aay subsequent federai tax Iaw (the `Code"j and wader the laws of the state of Texas) and, subject to such himitations and conditions as are or may be prescribed by law to exercise such other powers which now or hereafter tnay. be conferred by law upon a corporation organized for the purposes heretnabove sel forth, or necessary or incidental to the powers so conferred, or conducive to the attaznrrtent oftkie above-stated purposes of the Corporation- Z Notwitl~stariding any other provision of these Articles of Incorporation, the Corporation shall aerther nave nor exercise any power nor shall tt engage directly or uidirectly to any activity that would invalidate its status as a corporation (a) which is exempt from federal income taxation as an organization described in section 501(c)(3) of the Code, or (b) contributions to wl~ich are deductible from taxable income under section 170(c)(Z) of the Code. • pp7500.ppipp:037537a.01 U 10 bJ l~ U 1':~a> O ~: Y UOU V LL UVU LL GLV .LLLy\1 ~1 EXHIBIT B 3 In furtherance of its purposes as aforesazd, the Corporation shall have all of the powers enumerated in Article 2.02 of the Texas Non-Profit Corporation Act. ARTICLE rIVE The street address of the initial registered office of the Corporatton is and the name of its tnitYal registered agent at such address is ARTICLE SIX 1 The number of directors and the method of their appointment shall be determined by the Bylaws of the Corporation, and shall be subject to change from time to tune as the Bylaws maybe amended. The number of directors shall never be less than three (3). 2. Tize number of directors constituting the initial Board of Directors of the Corporation is Lam, anal th,e names and addresses of the persons who are to serve as the initial directors aze: I~Iame Address 3 The members of the Board of Directors shall serve without compensation, and no member of the Board of Directors shall receive any pecuniary benefit fxom the Corporation except reimbursement for actual expenses incurred in connection with the business of the Corporation and tndeinnificahon in the manner and to the extent provided in Article Twelve and the Bylaws of the Corporation. 4 The Coiporatioit shall indemnify its directors to the fullest extent provided by law ARTICLE SI/VEN The name and street address of the tncorporator are_ Name Address ARTICLE EIGIiT • The Corporation shall have no ctiembers 2 09!18/98 12 04 FA% 817 224 6060 HILLWOOD llhVhLUYMr,iV'1 ~1u1o EXHIBJT B • ARTICLE NINE The initial Bylaws of the Corporation shall be adopted by the Board of Directors, and the power to alter amend or repeal the Bylaws or adopt ne~uv Bylaws shall be vested to the Board of Directors ARTICLE TEN Anything in these Articles of Incorporation to the contrary notwithstanding, all or any part of these Articles of Incorporation may be amended from time to time only upon the affirmative vote of a majority of the directors present at any mccting at which there is a quorum, provided, however, that no amendzaent will be made which will cause the Corporation to cease to be an organization described in sccrion SO1(c)(3) of the Code. ARTICLE .ELEVEN 1 The Corporation is not organi~.ed for pecuniary profit, nor shall It have any power to issue certificates of stock or declare dividends. The balance, if any of all money and other .assets received by the Corporation from its operations, after the payment m full of all debts and obligations of the Corporation of whatever 1dnd and nature, shall be used and distn~uted exclusively fo>• carrying out only the purposes of the Corporation as particularly set forth in Article Four 2. The directors of the Corporarion shall comply with the notice req»~rements contained in section 508(a) of the Code. 3 No part of the net eartungs of the Corpora>lon shall more or be payable to or for the benefit of any pnvate individual, including the Corporation s directors and officers, except that the Corporation shall be suthori~~cd and empowered to pay reasonable compensation for services rendered, to make payments and distributions to furtherance of the purposes set forth in Article Four and to indemnify officers and directors as provided in Article Twelve and in the Bylaws of the Corporation. 4 No substantial part of the acttvities of the Corporation shall consist of carrying oti propaganda, or otherwise attempting to influence legislation, nor shall it in any manner or to any extent participate in, or intervene in (including the publishing or distributing of statements), any political campaign on behalf of any candidate for publte office. nor shall the Corporation engage in any actt~tttcs that are unlawful under applicable federal, state or local laws 5 The Corporation shall not operate for the pnmary purpose of carrytng on a trade or business for profit. • 09 lei/9if 1L U4 i'~13 1f17LLd KUKU rilLLIVUUll llhVhLUYD1hiV1 fir. u13 EXHIBIT B • 6 Upon the dissolution of the Corporation, assets shall be distributed for one or more exempt purposes within the meaning of section 501(c)(3) of the Internal Revenue Code, or the corresponding section of any future federal tax code, or shall be distributed to the federal government, or to a state or Local government, for a public puipose_ Any such assets not so disposed of shall be disposed of by a court of competent jurisdiction of the county in which the principal office of the Corporation is then located, exclusively for such purposes or to such organtzativn or organizations, as said court shall determine, which are organized and operated exclusively for such purposes. 7 A contribution or gz~ made by a corporation to the Corporation shall be used 6y the Corporation for charitable purposes solely within the Uatted States or its possessions. 8 The Corporation shall distribute its income for each taxable year at such time and in such manner as not to become subject to the tax oz~ undistributed income imposed by section 4942 of the lnterual Revenue Code. 9 The Corporation shall not engage in any act of self-dealing as defined in sectYOn 4941(d) o f the Internet Revenue Code. 10_ The Corporation shall not retain any excess business holdings as defined in section 4943(c) of theIntetztal Revenue Code. 11 The Corporation shall not make any investments in such manner as to subject it to under section 494-4 of the Internal Revenue Code. 12. The Corporation shall not make any taxable expenditures as defined to section 4945(d) of the Internal Revenue Code. ARTICLE TWELVE 1 No director of the Corporation shall be liable to the Corporation or its other directors for rrionetary damages (other than taxes, penalties and expenses of correction as described in Trea.s_ Reg. § 53 4941(d)-2(f)(3)) for an act or omission in the director s capacity as a director except that thzs article does nvt eliminate or Limit rite liability of a director to the extent the director is found liable for an act or omission which is A. a breach of the director s duty of loyalty to the Corporation or its directors B an act or ornisston not in good faith that constitutes a breach of duty of the director to the Corporation or an act or omissions that involves intentional misconduct or a knowing violation of the law C a transaction from whtch the director receives an improper benefit, whether or not the benefit resulted fxom an action taken wtthzn the scope of the director s office; or • 4 - U~1/1tS/4-!} Z1 U111 tll~ LL~I liUtiU H1LLifUUU Uh~hLUYi11CiV1 EXHIBIT B • D an act or omisston for wtuch the liability of a director is expressly provtded by an $pplicable statute. 2. The Corporation shall indemnify a person who was, is or is threatened tv be madc a named defendant or respondent in a proceeding because the person was or is a director of the Corporation to the fullest extent allowed by and in accordance with, the terms and pzovisions of sectton 2.22A of the Texas Non-Profit Corporation Act (as amended and in effect from time to txtne), including, but not limited to the indemiiiftcatior-s provided by Sections B H, I, J and IC thereof. For purposes of this paragraph Z of this Atttcle Twelve, director" slxall mean any person who is or was a director of the Corporation acid any person who, while a director of the Corporation, is or was serving at the request oi' the corporation as a director, ofbcer, parer venturer, proprietor trustee, employee, agent or siitv.lar fiuictionary of another foreign or domestic corporation, partnership, point venture, sole proprietorship, trust, employee benefit plan or other enterprise. ~1UlJ 3 This Article Twelve shall be deemed to incorporate by Reference any future amendments to applicable law that further limit or eliminate the personal liability of du~ectors, or provide for the indemiuficahon of directors by the Corporation_ 4 Any repeal or modification of all or part of this Article 1~c-elve by the directors of the Catporatiori shall not adversely affect any right or protection of a director of the Corporation • existing at the time of such repeal or modificatton., IN'GUI'INFSS WHEREOF I have hereunto set my hand, this day of 1998. FORT WORTH OPPORTTJNITY CENTER By. YZicorporator Ua/1tS/a2f 1L Uo rAA rill L.:~! ouou n11:l,nuuL LY,~t1.ur:uL.v EXHIBIT B • BYLAWS OF FORT WORTH OPPORTUNTTY CENTER ARTICLE I Offices W_l 1 Section 1 The reg~sieTed office shall be located m the City of Forl' Worth, County of Tarrant, State of Texas Section 2 The corporation may also have offices at such other places, either within or without the State of Texas, as the boazd of directors may from time to tune determine or as the business of the corporation may require ART1Cl:E II Directors Section 1 The affairs of the corporai~on shall be managed by the board of directors . in accordance with these bylaws, the Texas Non Profit Corporation Act (the Act') and the corporation s articles of incorporation, as amended from time to time. Section 2 7,'he number of directors oi' the corporation shall be at least three (3), or such other number as determined from time to tlnie by resolution of the board of dlrectors or as stated in the corporation. s articles of incorporation. Thy dlrectors shall be appointed as provided in Section 3 of this Article, and each director appointed shall hold office for ~~ years and until his successor is elected and qualified. Each director shall serve until the end of his or her term of office or if earlier lentil his or her death, resignation, retirement, disqualtficatlon or removal from office. Directors need not be residents of the State of Texas. The number of dlrectors may be increased or decreased from tuTie to time, but no decrease shall have the effect of shortening the term of any incumbent director ection 3 (a) Vacancies in the boazd of directors shall exist if either of the following events occurs (1) a director dies, resigns or is removed from office or (2) the authorized number of directors is increased or (3) a director s term of affiee ends in accordance with Section 2 of this Article. The board of directors may declare vacant the office of a director in any of the followui,g cases (a) if such director is adjudged incompetent by an order of court, if a guardian or other personal representative of such director is appointed by a court, or 1J' tWo licensed doctors of medicine each affirm in a written instrument signed by such doctor that he or she has examined such director and has concluded, based upon such examination, that such director is unable to • 007 500.00100:03753 82.01 _ uaitK H2S tL u~ r:111 rst~ zz~i ~uou lilLLItUUL Lr.VC,LUYmh1V1 Sul EXHIBIT B discharge tits or her dupes as director- (b) if such director is finally convicted of a felony- or (e) if within sixty (60) days after nonce of such director s appointment, he or she does not accept the office either in Writing or by attending a meeting of the board of directors. (b) Any vacancy occuamng in a position on the boazd of directors shall be filled by a ma~onty of the remasning directors then serving (c) Tf the board of directors accepts the resignation of a director tendered to take effect at a Future time other than. the time at which his or her terns would otherwise expire, the successor to such director maybe selected in accordance with above paragraph (b), to take office when the resignation becomes effective. A director appoiitted to fill a vacancy that exists for any reason other than the end of his or her successor's term of office in accordance with Section 2 of this Article shall be appointed to the unexpired term of tits or her predecessor in office. (d) Any director may be removed, with or without cause, at any time by the affirmative vote of two-thuds of the authorized nwnber of directors. Meetings of the Board of Directors Section 4 Meetings of the board of directors, regular or special, may be held either within or without the State of Texas Any regular or special meeting is valid, wherever held, if held on written consent o.f all members of the'boazd of directors given either before or after the meeting and filed with the secretary of the corporation. Section 5 Monday of A regular annual meeting oi`the board of directors shall be held on the first of each year at such place as shall be fixed by notice from the chairman of the board, and no notice of such meeting shall be necessary to the newly appointed directors in order legally to constitute the meeting, provided a quonun shall be present. Iri the event of the failure to fix the ttrnc and place of such regular annual meeting of the newly elected board of directors, or in the event such meeting is not held at the time and place so fixed, the meeting may be held at such time and place as shall be specified in a notice given as hereinafter provided for special meetings of the board of directors, or as shall be specified in a written Walver signed by all of the directors . eciion 6 Except as otherwise provided to SectYOn 5 of this Article, regular meetings of the board of directors may be held without. notice at such time and at such place as shall from time to time be determined by the board of directors Section 7 Special meetings of the board of directors may be called by the president and shall be called by the secretary on the written request of at least tWo (2) directors. '~Vntten notice of special meetings of the board of directors shall be given personally or sent by mail or by other form of. written con-irniinieation, to each director at least five (5) days before the date of the meeting Except as set forth in Article VT hereof, neither the business to be transacted at, nor the purpose of, any regular or special meeting of the board of directors need be specified in the nonce or waiver of notice of such meeting .. 007500.00100:0375382.01 o9i18/98 12 05 FA% 817 224 Bobo HILLWOOD DEVELOPMENT Ip~o18 EXHIBIT B ection 8 A majority of the authorized number of directors shall constitute a quorum For the transaction of business, and the act of the majority of the directors present at a meeting duly held at w}uch a quorum is present shall be the act of the board of directors, unless a greater number is required by law or the articles of incorporation or as otherwise set forth in these bylaws Each director present at a meeting will be deemed to have assented to aay action taken at the meeting, unless his or her dissent to the action is entered in the minutes of the n7eeting, or unless the director shall file his or her written dissent thereto with the secretary of the meetung or shall forward such dissent by certified mail to the secretary of the corporation immediately after such meeting If a quorum shall not be present at any meeting of the board of directors the directors preseiit thereat may adjourn the meeting from time to time, without notice other than announcement at the meeting, until a quorum shall be present. At such ad~oumed meeting at vvhtch a quorum shall be present, any busuicss may be transacted which might have been transacted at the meeting as originally notified and called. Section 9 Any action required or pennitted to be taken at a meeting of the board of directors or any committee thereof may be taken without a meeting if a consent iii writing, setting Forth the action taken, is signed by all of the members of the board of directors or the committee, as the case may be, and such consent shall have the same Force and effect as a unanunous vote at a meeting SLib~ect to the provrsiozis required herein for nonce of meetings, members of the board of directors or of any committee designated by the boazd of ducctors may participate in and hold a meeting of such board or committee by means of coztference by • telephone or sirrizlar communications equupment such that all persons participating m the meeting can hear each other and participation in a meeting pursuant to this Section 9 shall constitute presence in person at such uieehng, except where a person participates in a meeting for the express purpose of ob~echng to the transaction of any business on the ground that the meeting is not Lawfully called or convened. Committees of Directions Section 10 The board of directors, by resolution adopted by a majority of the full board, tnay designate from among its members one or more committees, each of which, to the extc>nt provided in such resolution, shall have and may exercise all of the authority of the board of directors, except that no such committee shall have the authority of the board of directors in reference to amending the articles of incorporation, approving a plan of merger or a plan of consolidation with another corporation, authorizing the sale, lease or exchange of all or substantially all of rite property and assets of the corporation otherwise than in the usual acid regular course of its business, authorizing a voluntary dissolution of the corporation or a revocation thereof; adopting a plan for the distribution of the assets of the corporation, amending, altering or repealing the bylaws of the corporation or adopting new bylaws of the corporation, filing vacancies in the board of directors or any such committee; filling any directorship to be filled by reason of an increase in the nurrtber of directors electing or removing officers of the corporation or members of any such conututtee; fixing the compensation of any member of such corrxmittee- altering or repealing any resolution of the boazd of directors that, by its terms, provides that it shall not be so amendable or repealable or taking any action outstde the scope of authority delegated to it by the board of directors Vaeanci.es in the membership of any such 3 007500.00100:037 $ 3 R2.0 I 09/18/98 12.06 FA% 817 224 6060 HILLWUUD DhVhLUYillJ:,iVi ~Iuta EXHIBIT B • committee shall be filled by the boaazd oi' directors at a regular or special meeting thereof. Any such committee shall keep regular minutes of its proceedings and report the same to the board of directors when required. The designation of a committee of the board of directors and the delegation thereto of authority shall not operate to relieve the board of directors, or any member thereof, of any responsibility imposed by law Each director shall be deemed to have assented to any action of a committee, unless he or she shall, within seven (7) days after receiving actual or constructive notice of such action, deliver his or her written dissent thereto to the secretary of the corporation. Members of airy such committee shall serve at the pleasure of the board of directors Comyensarioo. of Directors Section 11 The directors rrlay be paid their expenses, if any of attendance at each meeting of the board of directors Directors as such shall not receive any compensation for then ser~vi.ees, but nothing herein shall be construed to preclude any director from serving the corporation m any other capacity and receiving compensation therefor Members of special or standing committees may be paid their expenses, if any of attendance at committee meetings Chairman of the Board Section 12 The board of directors may in its discretion, choose a chairman of the board who shall preside at meetings of the directors and shall be an ex officio member of all standing committees The chairman of the board shall have such other powers and shall perform such other duties as shall be destgiiated by the board of directors. The chairman of the board shall be a member of the board of directors, but no other officers of the corporation need be a director The chairman of the board shall serve until his or her successor is chosen and qualified, but maybe removed at any time by the affirmative vote of a ma~onty of the board of directors. ARTICLE iII Notices and Rea,Luests Section 1 Notices and requests to directors or officers shall be in writing and delivered personally or by telecopy or mailed to the directors or officers at their addresses appearing on the books of the corporation. Notice or request by nz.ail shall be deemed to be givezi and received When deposited in the United States mail addressed to the addressee at his or her address as it appears on the records of the corporation, with adequate postage thereon prepaid, notice or request by personal delivery or telecopy shall be deemed to be given a>ad received at the time when same shall be actually received by the person to whom addressed. Notices and requests to directors and officers niay also be given by telegram, and shall be deemed delivered when same shall be deposited at a telegraph office for transmission and all appropriate fees therefor have been paid. Section 2. Whenever any notice is required to be given to any director under the provisions of any statute or of the articles of incorporation or of these bylaws, a waiver thereof iri writing signed by the person or persons entitled to such notice, whether before or after the time stated therein, shall be equivalent to the giving of such notice. • 4 007500,00 L00:0375382.01 V 10 !f0 1L V f:f~ Oll LG~! VVVV II LL VvL LL LLVi JU..a~ ,~ :EXHIBIT B • Section 3 Attendance of a director at a meeting shall constitute a waiver of notice of such meetirig, except where a director attends a meeting for the express purpose of ob~ectmg to the transaction of any business on the ground that the meeting is not lawfully called or convened. ARTICLE N Officers Section 1 The officers of the corporation shall consist of a president and a secretary and may also consist of one or more vice-presidents, a treasurer and such other officers as may be elected or appointed by the board of directors. Any two or more offices may be held by the same person, except the offices of president and secretary Section 2. The board of directors, at its annual meeting, shall choose a president and a secretary and may choose one or more vice-presidents, a treasurer and such other officers as tt deems appropriate, none of whom need be a member of the board of directors. Section 3 Sucl1 other officers and assistant officers and agents as n~iay be deemed necessary may be elected or appointed by the board of directors to hold office for such period, have such authority and perform such duties as are provided by the bylaws or as the board of directors may determine. . Section 4 The salaries of all officers and agents of the corporation shall be fixed from time to time by the board of directors Section 5 Each officer of the corporation shall hold office uniYl he or she shall resign or shall be removed or otherwise disqualified to serve, or his or her successor shall be chosen and qualified. Any officer or agent maybe removed by the board of directors, witli or without cause, whenever in its judgment the best interest of the corporation will be served thereby but such removal shall be without prc~udice to the contract rights, if any of the person so removed. Any vacancy occurring in any office of the corporation by death resignation, removal or otherwise shall be filled by the board of directors. The President Section 6 The president shall be the chief executive officer of the corporation, shall have general and active management of the busyness of the corporation and shall see that all orders and resolutions of the board of directors are carved into effect. In the absence of the chairman of the board or in the event the board of directors shall not have designated a chairman of the board the president shall preside at meetings o f the board of directors ecti n 7 The president shall execute bonds, mortgages and other contracts, except where the execution thereof shall be expressly delegated by the board of directors to some other officer or agent of the corporation • 5 007500,00100:03753 82.U 1 Ua/1!S/4~lS jL Up 1•AA 61/ LL4 OVOV nla.~.~~vvu Lr.tt.L~/1.~+++~ z, EXHIBIT B The Vice Presidents Section g The vice presidents, m the order of their seniority or otherwise, as deterrriined by the board of directors, shall, in the absence or disability of the president, perform th,e duties and exercise the powers of the president. They shall perform such other dunes and have such other powers as the board of directors shall prescribe. The Secretary and Assistant Secretaries Section 9 The secretary shall attend all meetings of the board of directors and record all tl-ie proceedings of the meetings of the board of directors in a book to be kept for that purpose and shall perform like duties for the standing committees, when required- The secretary shall give or cause to be given, notice of special meetings of the board of directors, and shall perform such other duties as may be prescribed by the board of directors or president, under whose supervision the secretary shall serve Section 10 The assistant secretaries, in the order of their seniority or if there be none, the treasurer acting as assistant secretary or otherwise, as determined by the board of directors, shall, in tlic absence or disability of the secretary perform the duties and exercise the powers of the secret~lry They shall perform such other dupes and have such other powers as the board of directors may from time to trine prescribe. The Treasurer sad Assistant Treasurers • Section 11 The trcastuer shall have custody of the corporate funds and securities and shall keep full and accurate accounts of receipts and disburserrients >.n books belonging to the corporation and shall deposat all moneys and other valuable effects in tl7e name and to the credit ofthe corporation in such depositones as maybe designated by the board ofdirectors Section 12 The treasurer shall disburse the funds of the corporation as may be ordered by the bo~u-d of directors, taking proper voucheTS for such disbursements, and shall render to the president and the board of directors at its regular meetings or when the board of directors so regwres an account of all his or her transactions as treasurer and of the financial condition of the corporation. Section 13 If required by the board of directors, the treasurer shall give the corporation. a bond in such stun and with such surety or sureties as shall be satisfactory to the boazd of directors for the faithfiil performance of tl~e duties of tits or her office and for the restoration to the corporation, in case of the t7easturer's death, resignation, retirement or removal from office, of all books, papers, vouchers, money and other property of whatever kind rn the treasurer s possession or tinder his or her control belonging to the corporation. Section 14 The assistant treasurers, in the order of their sen~onty or otherwise, as determined by the board of directors, or the secretary acting as assistant treasurer shall, in the absence or disability of the treasurer perform the duties and exercise the powers of the treasurer • 6 007500.00100:03753 62.01 to o i.. ry:a ul u~uv u ..~. ...... uc:, nwr.ua.. .~ EX.H~[BIT B They shall perform such other dunes and have such other powers as the board of directors may from titre to time prescribe. ARTICLE V General Provisions ection 1 The board of directors may authorize and the corporation may make dtstributrons, subject to any restrictions in the articles of incorporation and lim.itahons set forth in the Act_ Except as otherwise specifically provided herein, the board of directors shall make no distribution that inures to tlae benefit of any disqualified person (within the mearnng of Section 4946(x) of the Internal Revenue Cade of 1986 as amended (the `Code")) ection 2 The board of directors may by resolution create a reserve or reserves out of surplus or designate or allocate any and all of its surplus in any manner for any proper propose or purposes, and nay increase, decrease or abolish any such reserve in the same manzier ection 3 The board of directors may accept vn behalf of the corporation any contribution, gift, bequest or devise for the general purposes or for any special purpose of the corporation. The board of directors may make gins and give chartable contributions that are not prohibited by statute, these bylaws, the articles of incorporation acid any requirements for maintauung the corporation s federal and state tax status . Section 4 The board of directors may authorize any officer or officers, or agent or agents of the corporation, in addition to~the officers so authon~ed by these bylaws, to enter into any contract or execute and deliver any instrument to the name of and on behalf of the corporation, and such authority may be general or confined to specific instances, including, without limitation, contracts for administrative and other services in furtherance of the exempt purposes of the corporation. ection 5 All checks, drafts or other orders for payment of money notes or other evidences of indebtedness issued In the name of or payable to the corporation shall be signed or endorsed by such officer or officers or such other person or persons as the board of directors may frorn time to time designate. ection 6 All funds of the corporation shall be deposited from tune to time to the credo of the corporation in such banks, trust coinpames or other depositories as the board of directors may select. Section 7 The fiscal year of the corporation shall be fixed by resolution of the board of directors Section S The corporate seal, if any shall have inscribed thereon the name of the corporation, and be in a form approved by the board of directors. Tl~e seal may be used by causing it or a facsimile thereof to be impressed or affixed or in any other manner reproduced. • 7 007500 00100:0375382.01 09/18/98 1L U7 raa 817 214 tfutiu ri1LLnUUL llhVhLUY~ivl ~ ~, EXHIBIT B . Section 9 The corporation shall keep correct and complete books and records of account and shall also keep at the registered or principal office of the corporation a record giving the names and addresses of tk~e directors entitled to vote. All books and records of the corporation may be inspected by any director or his or her agent, accountant or attorney for any proper purpose at any reasonable time. ARTICI:E VI Amendment of Bylaws Section 1 The board of directors may amend or repeal these bylaws, or adopt new bylaws at any regular meeting of the board of directors or at any special meeting of the boazd of directors if nonce of such amendirient, repeal or adoption of new bylaws is contained in the notice of such meeting. 1~l'o amendment irtay be made to these bylaws which would alter the corporation s purposes as stated in. the articles of incorporation, as amended from time to time, ar which would cause any benefit, other than reasonable compensation as determined under Section 12 of Article II or Section 4 of Article 1:'V to lmure to aay person who has a personal or private interest m the activities of the corporation. ARTICLE VII I~ademnification of Officers and Directors • ection 1 As utilized ~n this Article, the following terms shall have the meanings indicated. (1) `Corporation includes any domestic or foreign predecessor entity of the corporation in a merger consolidation or other transaction in w)tach the liabilities of the predecessor are transferred to the corporation by operation of law aild in any other transaction vn which the corporation assu.rries the liabilities of the predecessor but does,not specifically exclude liabilities that are the subject matter of this Article. (2) `Director" means any person who is ~or was a director of the corporation and any person who wk~i le a director of the corporation, is or was serving at the request of the corporation as a director officer partner venturer proprietor trustee, employee, agent or sunilaz functionary of another foreign or domestrc corporation, partnership point venture, sole proprietorship trust, employee benefit plan or other enterprise. (3') `Expenses" include court costs and attorneys fees. (4) `Official capacity means (1) when used with respect to a director the office of director in the corporation, and (ii) when used with respect to a person other than a director the elective or appointive office 1n the corporation held by the officer or the employment or agency relahonsl~ip undertaken by the employee or agent on behalf of the corporation but notwithstanding any provision hereof to the contrary official capacity as defined in both • 8 007 5 00.00100:03753 A 2.01 U 10 as 1L UO tiA Ol LL'! OVOV a iv ~~u LG LLVi.ui:.. ,~ EXHIBIT B . (i) and (ii) above does not include service for any other fvrelgii or domestic corporation or any partnership, ~oizit venture, sole proprietorship trust, employee benefit plan or other enterprise. (5) `Proceeding means any threatened, pending or completed action, suit or proceeding, whether civil, criminal, adnvnistrative, arbitrative or investigative, any appeal in such an action, suit or proceeding and any ingtury or investigation that could lead to such an action, suit or proceeding. Section 2 The corporation shall indemnify a person who was, is or is threatened to be made a named defendant or respondent in a proceeding because the person is or was a director only if it is determined in accordance with Section 6 of this Article that the person_ (1) conducted himself or herself in good faith, (2) reasonably believed. (a) in the case of cvnducl !n his or her official capacity as a director of the corporation, that lus or her conduct was m the corporation s best interests, and (b) in all other cases, that lus or her conduct was at least not opposed t~ the corporation s best interests and (3) m the case of any criminal proceeding, had no reasonable cause to believe that his or her conduct was unlawful ection 3 A director shall not be indemnified by the corporation as provided m Section 2 of this Anc~te for obligations resulting from aproceeding- (1) in which the director is found liable on tl~e basis that personal benefit was improperly received by him or her whethcr or not the benefit resulted from an action taken in the person s official capacity- or (2) in which the person is found liable to the corporation, except to the extent permitted ui Section 5 of this Article • Section 4 The terniination of a proceeding by judgment, order settlement or conviction or on a plea of polo corttendere or its equivalent is not of itself determinative that the person did not meet the requirements set forth m Section 2 of this Amcle A person shall be deemed to have been found liable in respect of ally claam issue or matter only after the person shall have been so adjudged by a court of competent ~unsdiction after exhausi~on of all appeals therefrom. Section 5 A person may be indemnified by the corporation as provided in Section 2 of this Arhele against judgments, penalties (including excise and similar taxes), fines, settlements and reasonable expenses actually incurred by the person in connection with the proceeding; but if the person is found liable to the corporation or is found liable on the basis that personal benefit was improperly received by the person, the indemnification (1) is limited to reasonable expenses actually incurred by the person in connectron with the proceeding, and {2) shall not be made in respect of any proceeding in which the person shall have been found liable For willful or intentional misconduct in the performance of his or her duty to the corporation. Section 6 A determination of mdenuiificatlon under Section 2 of this Article must be made (1) by a majority vote of a quorum consisting of directors who at the tune of the vote are not named defendants or respondents in the proceeding• (2) if such a quorum cannot be obtained, by a majority vote of a committee of the board of directors, designated to act in the nnatter by a ma~onty vote of all directors, consisting solely of two or more directors who at the time of the vote are not named defendants or respondents in the proceeding; oT (3) by special legal counsel • 9 007500.00100:03753 ~2.U 7 u 10 2!O la: u0 taiA i. ~~~! UVUV Rl LLn vvu uG GLV .ua.. .~ EXHIBIT B • selected by the board of directors or a committee of the board of directors by vote as set forth in subsection (1) or (2) of this Section 6 or if such a quorum cannot be obtained and such a committee cannot be established, by a majority vote of all directors. Section 7 Authonzation of indemnification and determination as to reasonableness of expenses must be made Ln the same manner as the determination that indemnification is permssible, except that if the determination that videmnification is permissible is made by special legal counsel, authon~ation of indemnification and determination as to reasonableness of expenses must be made an the manner specified by subsection (3) of Section 6 of this Article for the selection of special legal counsel. Notwithstanding. the preceding sentence, a provision contained in the articles of incorporation, the bylaws, a resolution of directors or an agreement that makes mandatory the undemnificahon described in Section 2 of this Article shall 6e deemed to constitute authonzatron of indemnification iri the manner required herein, even though such provision may not have been adopted or authorized in the same manner as the determination that indemnification is petinissible Section 8 The corporation shall indemnify a director against reasonable expenses inetured by such director ii7, connection with a proceeding to which he or she is a named defendant or respondent because he or slie is or was a director if the director has been wholly successful on the merits or otherwise, in the flefense of the proceeding. ectYOn 9 If, upon application of a director a court of competent ~unsdiction determines, after giving any notice the court ebnsiders necessary that the director is fairly and • reasonably entitled to indemrufication in view of all the relevant circumstances, whether or not he or she has met the requirements set forth in Section 2 of this Article or has been found liable in the circumstances described m Section 3 of this Article, the corporation shall uidemnify the director to such further extent as the court shall determine but if the person is found liable to the corporation or is found liable on the basis that personal benefit was improperly received by the person, the indemnification shall be limited to reasonable expenses actually incurred by the person to connection with the proceeding. Section 10 Reasonable expenses uicurred by a director who was, is or is threatened to be made a named defendant or respondent in a proceeding may be paid or reimbursed by the corporation in advance of the final disposition of the proceeding and without the determination specified to Section 6 of this Article or the authorization or determination specified in Section 7 of this Article, after the corporation receives a wnttcn affirmahoii by the director of the director's good faith belief that he or she has met the standard of conduct necessary for mdemnifcation under this Article and a wntten undertaking by oi• on behalf of the director to repay the amount paid or reunbursed if it is ultimately determined that the director has not met that standard or it is ultimately determined that mdemnificabon of the director against expenses incurred by litm or her in connection with that proceeding is prohibited by Section 5 of this Article. A provision contained in the articles of incorporation, these bylaws, a resolution of the directors or an agreement that makes mandatory the payiiient or reimbursement permitted under this Section shall be deemed to constitute authonzation of that payment or reimbursement. `u` • 10 007 500.00100:03753 is2.01 ua loiaa ~lc. ua, r:~n of ..c •k OU u u ..,.. ..~~ uL c. i..... ..... ~, EXHIBIT B • Section 11 The written undertaking requued by Section 10 of this Article must be an unlimited general obligation of the director but need not be secured. It may be accepted without reference to financial ability to make repayment. Section 12 Notwithstanding any other provision of this Article, the corporation may pay or reimburse expenses incurred by a director in connection with his or her appearance as a wibo.ess or other participation in a proceeding at a time when the director is not a named defendant or respondent in the proceeding Section 13 An officer of the corporation shall be indemnified by the corporation as and to the same extent provided by Sections 8 and 9 of tits Article for a director and is entitled to seek indemnification under those Sections to the same extent as a director The corporation may indemnify and advance expenses to an officer employee or agent of the corporation to the same extent that it may indemnify and advance expenses to directors under this Article. Section 14 The corporation may indemnify and advance expenses to persons who are not or were not officers, employees or agents of the corporation but wlio are or were serving at the request of the corporation as a director officer partner venturer proprietor trustee, employee, agent or sunilar functionary of another foreign or domestic corporation, partnership louit venture sole proprietorship tnlst, employee benefit plan or other enterprise to the same extent that it may indemnify and advance expenses to directors under this Article. Suction 15 The corporation inay indemnify and advance expenses to an officer employee agent or person identified in Section ] 4 of this Article and who is not a director to such .further extent, consistent with law as may be provided by the articles of incorporation, these bylaws, general or specific action of the board of directors or contract or as permitted or required by common law Section 16 The corporation may purchase and mauntain insurance or another arrangement oii behalf of any person who is or was a director officer employee or agent of the corporation or who is or was serving at rite request of the eorporarion as a director officer partner, venturer proprietor trustee, employee, agent or sinnlar functionary of another foreign or domestic corporation, partnership ~omt venture, sole proprietorship trust, employee benefit plan or other enterprise, against any liability asserted against him or her and incurred by him or her in such a•capacity or arising out of his or her status as such a person, whether or not the corporation would have the power to indemnify the person against that liability under this Article Without limiting the power of the corporation to procure or maintain any kind of insurance or other arrangement, the corporation may for the benefit of persons indemnified by the corporation (1) create a trust fund, (2) establish any form of self insurance (3) secure its indemnity obligations by grant of a security interest or other lien on the assets of the corporation, or (4) establish a letter of credit, guaranty or surety arrangement. The insurance or other arrangement may be procured, maintained or established within the corporation or with any insurer or other person deemed appropriate by the board of directors, resardless of whether all or part of the stock or other szcunties of the insurer or other person are owned in whole or part by the corporationi_ Cn the absence of fraud, the~udgmcnt of the board of directors as to the terms and conditions of the insurance or other arrangement and the identity of the insurer or other person participating iii an 11 007500.00100:03 753 82.01 ~U!!/1!S/9!1 1L.01~ l+A1 lilt LG~ bUliU n1Lr-nuull llhvr.LUriun~vi ~~~ EXHIBIT S arrangement shall be conclusive, and the insurance or arrangement shall not be voidable and shall not subject the directors approving the insurance or arrangement to liability on any ground, regardless of whether directors participating in the approval are beneficianes of the insurance or arratigemerit. Section 17 For purposes of this Article, the corporation is deemed to have requested a director to serve an cmployee benefit plan whenever the performance by the director of his or her duties to the corporation also imposes duties on or otherwise involves services by the director to the plan or participants or benefieiancs of the plan. Excise taxES assessed on a director with respect to an employee benefit plan pursuant to applicable law are deemed fines Action taken or omitted by the director with respect to an employee benefit plan in the performance of his or het dupes or for a purpose reasonably believed by the director to be in the interest of the participants and beneficianes of the plan is deemed to be for a purpose which is riot opposed to the best interests of the corporation. Section 18 The coverage of any liability insurance purchased by t)~e corporation pursuant to Article 'VII, Sectton 15 may include coverage for the indemnifiable expenses described elsewhere in Article VII, as well as judgments, filies, settlements, penalties, taxes and expenses of correction, including such expenses as may be related to taxes, penalties and expenses of correction unposed under Chapter 42 of tl.~e Code However i£ coverage for ludgznents, fines, settlements, penalties, taxes and expenses of correction is included in any liability insurance so purchased by the corporation, the corporation shall request the insurance carrier from whom such insurance is purchased to furnish the corporation with the portion of any • insurance premitmi payable that is attributable to such coverage for judgments, hives, settlements, penalties, taxes and expenses of correction. That portion of such premium as is so designated by the insurance tamer shall be allocated pro rata among the directors, officers and employees of the corporation, as well as any other party actually included within such coverage pursuant to the provisions of Section 16 hereof, and included, where applicable, to 111e compensation paid to each such director officer employee or other party by the corporation. Section 19 No purchase of insurance, uidetnnifieation or other action contemplated or allowed by this Article shall be construed to allow or permit any such purchase, indemnification or action, except as such is within any limitations placed on the corporation as a tax exempt organization under the provisions of the Code, the laws of the State of. Texas the Act, or any other applicable rule or regulation. WE, THE UNDERSIGNED Dp HEREBY CERTIFY that the foregoing are the Bylaws of FORT WORTH OPPORTUNITY CENTER, as adopted by a wntten consent of directors effective as of the day of 1998 12 007500.00100:0375382.01 uailaiatl 1L Va 1"t1A ol~ cc4 ouou n ii V~u uc GLV ,,,... .~, EXHIBIT l3 13 007500.(107 00:0375382.01 U2!/ltd/a!i 1L V!! tAA bl~ LG~k OUOV a vv vvai l.c, t,l,~ruac;,~ ,~ EXI~IBIT C • Legal Descnption Block 1 of ANDERSON LABORATORY ADDITION (INDUSTRIAL PARK), a subdivision of blocks A and `C" Carver Plaza, Firsl' Increment, to the City of Fort Worth, Tarrant County Texas, according to the Plat thereof recorded in Volume 388-139 Page 50 Plat Records, Tarrant County Texas • CJ UL 10 b6 1`! JJ rL1A rill LLy OUOU II LL VVL LG GLV(ll1.G~v • -~ ~u a ~IIHIT D ~t8 ~~ Y~ s~~1 N~ `NJ iaa~ls ssv~ u 10/!!p 1L lU 1'HA of LLy OUOU II LLn UUL LL GLUC1I1L1~ EXHIBIT E FORT WORTH OPPORTUNITY CENTER • CAPITAL BUDGET • • Tula! Architcctural/MII' Design 5 50,000 Civil Bnpneering 8,000 Landscape Design 3,000 Geotechnical 2,000 Testing & Inspection 3,000 L.epa1/Consulting 20,000 Marketing bt Promotion 1,500 5itewol'k and pavement tnpaits (Replace 20000 of onctztc pavefiettl) 75,000 Replace concrete slab on grads an~q (2W0 sf @ $4.50) 9,000 5ca1 wurehouse floors (L4187 sf ®50.80) 4,965 Additional warehouse li6hling-High bay fixtures 4,000 Paint warehouse walls (9300 sf rei $0.80) 7,440 Building Shell (ti000sf (a3 535,W) 210,000 Demolition and Farrade Renovation 60,000 ~ds~l~g 60,000 New Fencing 2090 ]f «, $18.00 37,620 Additional Pavement Repair (40% of t'etnaining al'ea) 115,000 Contingency ZS 000 Closing Cost & Title Fccs 25,000 Intmm Financing Costs 35,000 Total Building Cost 7C.5,523 F ahings,Fixturc:s end Equipment 25,000 Projferty AcquiSitinn ['not 600,000 Total Protect Cost S 1,390,515 ~ u File: FW Opp Ctnter Da~~ 09/18/1998; Time: 12:42 PM o9~18i98 1'L 10 FAb 817 629 6060 HILLWOOD DEVhLOYDiENT EXHIBIT F FORT WORTH OPPORTUNITY CENTER PROJECTED B UDGET ~/-1 U J :f Year ] lcar 2 __ Vcar 3 Ve:,r b Yca DIRECT COSTS coNTRACTLABOx 20>00o zo,boo 21,218 2t,a55 22,sto kQUTpMEN7' RENTAL 3,000 3,090 3,183 3?78 3377 RENTAL EXPENSE I 1 t 1 t TICAM 3,500 3,605 3,713 3,825 3,939 UTILITIES 3,000 3,090 3183 3?7R 3,377 SECURITX 30,000 30,400 31,837 3'_',782 33,765 TEL,EPI30NE. 2,376 2,447 2,521 2.596 2,674 SALARIES EXECUTIvE DIxECTOR ~ ~ T5,000 7750 79„558 81,y55 84,413 EXECUTIVE ASSLSTANT 32,240 33,207 34,203 35,230 36,286 FICA 6,880 7,086 7,299 7,518 7 744 UNL'•MPLOYMENl' 1tt0 185 191 197 203 HEALTH INSURANCE l1 596 11,944 12,302 12,571 13.051 WORKER'S COMPENSATION 685 706 727 749 771 SUPPLIES OFFICE SUPPLIES 4,800 4,944 5,092 5,245 5 402 POSTAGE fi00 618 637 656 678 O SUPPLIES 6,000 5,180 6,355 6 SS6 6,753 .1DIALE74'ENSF, 1,800 1,854 1,910 1,967 2,026 PRINTING 2,x00 2,472 2,545 2.633 2,701 S'TTJDENTSUPPI.IFS '1,200 7416 7,b38 7.868 8,104 EQUIPMENTItE1'AIxS 6,000 6,180 6,365 S,SSG 6,753 MTSCELLANEOCJS STAFTTRAVEL.IN-TOWN 1,000 1,030 1,061 1,093 i I2G STAFFTRAVEL OUT-OF-TOWN 7,250 7468 7,69? 7,922 8,160 DUES AND 1~lEMBERSHtPS 1,100 1,133 1,167 t,202 1 338 'ENTRANCE PFES SS00 2575 2.682 2,732 2,814 INDIRECT COSTS 5,555 5 722 5,893 6,070 6,252 CAPITAL OUTLAYS MAJOREQUIPMFNTANI7PROPI;RTY 8,970 9239 9-5]6 9,80? 10,096 OFFICE EQUIPMENT 5,400 5,562 5,729 5,901 6,078 ~ Chanb'e CPI CPl CP/ CP/ `FQ,'rAL;B1:IDGF~ OS3` ;n. ~YC~4? i ~ 'y ~,7>.~,~i"':.";;i, ~ ~• -• , :~ +-r'_-;. - '^.4.i' :s, _ ~ -~: ay,033 ~ •---~-.-. ~~ 256',504' ._ _ .^-..._._^'r ~$~~ 264rky9 ~$ ~•~----.-•. -- 272,123 $ ~-- 280,289 • Fik: FwoC sUDGEr Pale: 9/1b198;Timc: ~i•at wM 1 HII.LWOOD DCVELOPMCNT CO~LPOKATION H[LLWOOD DEVELOPMENT CORPORATION • September 29 1998 Mr Bob Terrell C-ty Manager C-ty of Fort Worth 1000 Throckmorton Street Fort Worth, Texas 76102 Re• Memorandum of Understanding between Hillwood Development Corporat-on ("H-llwood") and the C-ty of Fort Worth ("Fort Worth ') concern-ng the cond-rions to a Un-form Wholesale Water Contract for Water Serv-ces between the Town of Westlake ("Westlake') and Fort Worth. Dear Mr Terrell Th-s letter sets forth the general terms and condrt-ons under wh-ch Fort Worth w-11 enter into a Wholesale Water Contract w-th Westlake These terms and cond-t-ons are set out below 1 Wholesale Water Contract. Fort Worth w-ll enter -nto a Un-form Wholesale Water Contract (the `Contract") w-th Westlake 2 Financial Obligations. H-Ilwood w-ll fund the following cap-tal costs wh-ch Fort Worth has incurred or w-il incur -n assoc-at-on wrth -ts obl-gat-on to prov-de water to Westlake under the Contract (est-mated to be $10 100 000) The financ-al obl-gat-ons -nclude the following: A. Prepayment of Impact Fees A payment of $2,000 000 w-11 be made to Fort Worth by H-llwood upon execut-on of the Contract, wh-ch contract w-ll be enter into on or before January 1 1999 Th-s payment represents a prepayment by H-llwood of future Impact Fees to be charged under the terms of the Contract and -n connect-on wrth the development of the C-rcle T Ranch H-Ilwood or rts ass-gns w-II rece-ve a credited for future unpact fees due under the Contract. B. Water Facility Cost• Forth Worth w-Il make the necessary -mprovements to rts water system to prov-de the add-t-onal capac-ty to serv-ce the Town of Westlake Fort Worth and H-Ilwood w-ll enter -nto a Cap-tal Cost Contract ("CCA') to fund these costs. In add-t-on to the $2,000 000 payment set out -n 2A. above, the balance of the cost ($8 100 000) w-Il be funded as follows Years 1 5 $298 885 Years 6 25 $645,374 Years 26 30 $346 489 EXHIBIT 3~ 13600 Heritage Parkway Suice X00 Furt \ ~ .C Fas (til') Z4-b0b0 u~~-t~.htfl ,1 mi Furt Wurth Dallas r\tlanta ustir .~nsas Lit}' inc Lu Julla ~l,nu \hu Dhabi C Letter to Mr Bob Terrell Memorandum of Understanding -Uniform Wholesale Water Contract for Water Services September 28, 1998 Page 2 of 2 If this letter accurately expresses our mutual understanding, please execute it an the spaces provided below Sincerely Hillwood Development Corporation C //~~~ _ By• Acknowledged and Agr d. City of Fort Worth 4 ~ ~, By. Date / •