Exhibit 10.3
FIRST AMENDMENT TO
REAL ESTATE PURCHASE CONTRACT
This First Amendment to Real Estate Purchase Contract (“Amendment”) is effective
as of October 20, 2011, and is entered into by and among: SOUTH PADRE ISLAND
DEVELOPMENT, LLC, a Delaware limited liability company (herein “Seller”); PRIME
FINANCIAL L.L.C., an Oklahoma limited liability company, or its assigns (herein
“Buyer”); LANDMARK LAND COMPANY, INC., a Delaware corporation (“Landmark”);
GERALD G. BARTON, an individual (“Barton”); and JACK E. GOLSEN, an individual
(“Golsen”).
WHEREAS, Seller, Buyer, Landmark, Barton and Golsen executed a Real Estate
Purchase Contract (“Contract”) on four tracts of land in Cameron County, Texas
(the “Land”) associated with Seller’s and Landmark’s (“Developer’s”) development
of residential and commercial real property in Cameron County, Texas (the
“Planned Development”) of which the Land is a part; and
WHEREAS, International Bank of Commerce (“Lender”) holds liens on the Land and
other real property in the Planned Development that secure the payment of
Developer’s indebtedness to Lender; and
WHEREAS, Developer has advised Buyer that Lender and Developer are negotiating
the terms of a renewal and extension of Developer’s indebtedness owed to Lender
that may: (i) increase the portion of the Purchase Price that Developer must pay
to Lender in order to obtain a release of Lender’s liens on the Land; and
(ii) impose new or modified conditions on Developer that impact Developer’s
ability to market and close on its remaining Planned Development properties in
the time and manner set forth in Developer’s short, medium and long term
business plans; collectively, the “Lender Additional Conditions”; and
WHEREAS, Buyer has advised Developer that Buyer is unwilling to proceed with the
purchase of the Land if the Lender’s Additional Conditions negatively affect
Developer’s short term cash flow or Developer’s sales projections on its
remaining Planned Development properties (collectively, the “Potential Adverse
Consequences”), so Buyer and Developer, in lieu of Buyer terminating the
Contract during the Inspection Period, have agreed to amend the Contract in
certain respects to give Developer time to negotiate Lender Additional
Conditions that are mutually acceptable to Developer and Lender, and that allow
Developer to show Buyer, to Buyer’s reasonable satisfaction, that the agreed
Lender Additional Conditions either do not have any Potential Adverse
Consequences that adversely affect the marketability or fair market value of the
Land, or that minimize such risks.

 

 

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NOW THEREFORE, Seller, Buyer, Landmark, Barton and Golsen agree as follows:
1. The Inspection Period under Section 4.2 is extended until the later of (i)
___ or (ii) twenty days after the date that Buyer receives an updated Title
Commitment from the Title Company based on the information disclosed in the
Survey.
2. The parties acknowledge that Buyer has provided Seller a letter dated
October 20, 2011, detailing Buyer’s Title Objections (as defined in the
Contract) to title and survey matters disclosed in the Title Commitment and the
Survey, as well as additional development matters identified during the
Inspection Period, collectively, the “Buyer Issues.” In lieu of the process set
forth in Section 3.4 of the Contract, on and after the date of this Amendment,
Seller and Buyer shall seek to resolve, prior to the expiration of the
Inspection Period, to Seller’s and Buyer’s mutual satisfaction, the Buyer
Issues. If there are unresolved Buyer Issues at the expiration of the Inspection
Period, the Contract will terminate, unless Buyer, in writing, prior to the
expiration of the Inspection Period, agrees to waive any outstanding Buyer
Issues. If the Contract is terminated, Seller will return the Earnest Money
Deposit to Buyer within five (5) calendar days of the termination of the
Contract, Seller shall bear the cost of all title work, including the Survey,
and any survey consultation services of Pena Engineering, procured in connection
with the Contract, and thereafter Seller and Buyer shall have no further rights
or obligations under the Contract.
3. Seller acknowledges receipt of the initial $350,000 Earnest Money Deposit
required of Buyer under Section 2.1 of the Contract. The requirement for the
“First Additional Earnest Money Deposit (as defined in the Contract), and the
“Second Additional Earnest Money Deposit (as defined in the Contract) are
deleted from the Contract.
4. The fourth sentence in Section 6.1 of the Contract is deleted in its
entirety.
5. Except as provided in this Amendment, all other terms and conditions of the
Contract remain in full force and effect.
IN WITNESS WHEREOF, the parties have executed this Amendment on the separate
signature pages attached as a part hereof.
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[Signature page to First Amendment to Real Estate Purchase Contract]

             
“Seller”:
  SOUTH PADRE ISLAND DEVELOPMENT, LLC, a Delaware limited liability company    
 
           
 
  By:   /s/ W.W. Vaughn
 
Name:    
 
      Title: Vice President    
 
                Date of Execution: 10/31/2011    

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[Signature page to First Amendment to Real Estate Purchase Contract]

             
“Buyer”:
  PRIME FINANCIAL, L.L.C. an Oklahoma limited liability company    
 
           
 
  By:        
 
     
 
Name:    
 
      Title:           Date of Execution: ________, 2011    

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[Signature page to First Amendment to Real Estate Purchase Contract]

             
“Landmark”:
  LANDMARK LAND COMPANY, INC., a Delaware corporation    
 
           
 
  By:   /s/ Joe Olree    
 
           
 
      Name:    
 
      Title: Vice President    
 
                Date of Execution: October 31, 2011    

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[Signature page to First Amendment To Real Estate Purchase Contract ]

         
“Barton”:
  /s/ Gerald G. Barton
 
Gerald G. Barton, an individual    
 
       
 
  Date of Execution: 10/31/2011    

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[Signature page to First Amendment to Real Estate Purchase Contract]

         
“Golsen”:
       
 
 
 
Jack E. Golsen, an individual    
 
       
 
  Date of Execution:                     , 2011    

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