Document:

Exhibit 10(a)

 

SECOND
AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

 

THIS SECOND AMENDMENT TO
SECOND AMENDED AND RESTATED CREDIT AGREEMENT (the “Amendment”), dated as
of June 6, 2003, (the “Amendment Date”) is among HAGGAR CLOTHING CO. (“Company”),
HAGGAR CORP. (“Haggar”), each of the banks which are party hereto and
JPMORGAN CHASE BANK, (formerly The Chase Manhattan Bank) individually as a Bank
and as Agent for itself and the other Banks (in such capacity as Agent,
together with its successors in such capacity, “Agent”).

 

RECITALS:

 

A.                                   Pursuant to that certain Second Amended and
Restated Credit Agreement dated June 13, 2002 among the Company, Haggar, each
of the banks which are parties thereto (individually a “Bank” and
collectively, the “Banks”) and the Agent (as the same has been amended
by that certain First Amendment to Second Amended and Restated Credit Agreement
dated December 11, 2002 and may be further amended, restated or otherwise
modified from time to time, the “Agreement”), the banks party thereto
agreed to make Loans to Company as set forth therein.

 

B.                                     Company and Haggar have requested that the
Banks agree to modify the Agreement as herein set forth.  The Banks party hereto are willing to do so
upon the terms and provisions of this Amendment.

 

NOW, THEREFORE, in
consideration of the premises herein contained and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows, effective as of the Amendment Date, unless
otherwise indicated:

 

ARTICLE 1.

 

Definitions

 

Section
1.1.                                   Definitions. 
Capitalized terms used in this Amendment, to the extent not otherwise
defined herein, shall have the same meanings as in the Agreement, as amended
hereby.

 

ARTICLE 2.

 

Amendment

 

Section
2.1.                                   Amendment to Section 7.15 of the Agreement.  Section
7.15 of the Agreement is amended and restated in its entirety to read as
follows:

 

7.15                           Capital
Expenditures Limitation.  Make or
agree to make Capital Expenditures during any fiscal year in excess of an
amount equal to ten percent (10%) of the Company Group’s Net Worth; provided
that neither the expenditures for (a) the repair or replacement of property
with insurance proceeds (to the extent such expenditures do not exceed the net
cash amount of such insurance proceeds) nor (b) the purchase of the Company’s
new headquarters located at 11511 Luna Road in an amount equal to the aggregate
amount of proceeds received from the sale of the Company’s current headquarters
located at 6113 Lemmon Avenue, shall be included in Capital Expenditures for
purposes of the foregoing calculation.

 

1

 

ARTICLE 3.

 

Miscellaneous

 

Section
3.1.                                   Ratifications.  The
terms and provisions set forth in this Amendment shall modify and supersede all
inconsistent terms and provisions set forth in the Agreement and except as
expressly modified and superseded by this Amendment, the terms and provisions
of the Agreement and the other Loan Documents are ratified and confirmed and
shall continue in full force and effect.

 

Section 3.2.                                   Representations and Warranties. 
Company and Haggar hereby represent and warrant to Agent and the Banks
as follows:  (a) no Default exists and
(b) the representations and warranties set forth in the Loan Documents are true
and correct in all material respects on and as of the date hereof with the same
effect as though made on and as of such date except with respect to any
representations and warranties limited by their terms to a specific date.

 

Section 3.3.                                   Survival of Representations and Warranties.  All
representations and warranties made in this Amendment shall survive the
execution and delivery of this Amendment, and no investigation by Agent or any
Bank or any closing shall affect the representations and warranties or the
right of Agent or any Bank to rely upon them.

 

Section 3.4.                                   Reference to Agreement. 
Each of the Loan Documents, including the Agreement, are hereby amended
so that any reference in such Loan Documents to the Agreement shall mean a
reference to the Agreement as amended hereby.

 

Section 3.5.                                   Expenses of Agent.  As
provided in the Agreement, Company agrees to pay on demand all costs and
expenses incurred by Agent or any Bank in connection with the preparation,
negotiation, and execution of this Amendment, including without limitation, the
costs and fees of Agent’s and each Bank’s legal counsel.

 

Section 3.6.                                   Severability.  Any
provision of this Amendment held by a court of competent jurisdiction to be
invalid or unenforceable shall not impair or invalidate the remainder of this
Amendment and the effect thereof shall be confined to the provision so held to
be invalid or unenforceable.

 

Section 3.7.                                   Applicable Law. 
This Amendment and all other Loan Documents shall be governed by and
construed in accordance with the laws of the State of Texas and the applicable
laws of the United States of America.

 

Section 3.8.                                   Successors and Assigns. 
This Amendment is binding upon and shall inure to the benefit of Agent,
each Bank, Company and Haggar and their respective successors and assigns,
except that neither Company or Haggar may assign or transfer any of its rights
or obligations hereunder without the prior written consent of the Banks.

 

Section 3.9.                                   Counterparts. 
This Amendment may be executed in one or more counterparts and on
telecopy counterparts, each of which when so executed shall be deemed to be an
original, but all of which when taken together shall constitute one and the
same agreement.

 

Section 3.10.                             Effect of Waiver.  No
consent or waiver, express or implied, by Agent or any Bank to or for any
breach of or deviation from any covenant, condition or duty by any Obligated
Party shall be deemed a consent or waiver to or of any other breach of the same
or any other covenant, condition or duty.

 

2

 

Section 3.11.                             Headings.  The headings, captions, and arrangements
used in this Amendment are for convenience only and shall not affect the
interpretation of this Amendment.

 

Section 3.12.                             ENTIRE
AGREEMENT.  THIS AMENDMENT EMBODIES
THE FINAL, ENTIRE AGREEMENT AMONG THE PARTIES HERETO AND SUPERSEDES ANY AND ALL
PRIOR COMMITMENTS, AGREEMENTS, REPRESENTATIONS AND UNDERSTANDINGS, WHETHER
WRITTEN OR ORAL, RELATING TO THIS AMENDMENT, AND MAY NOT BE CONTRADICTED OR
VARIED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OR
DISCUSSIONS OF THE PARTIES HERETO. THERE ARE NO ORAL AGREEMENTS AMONG THE
PARTIES HERETO.

 

Section 3.13.                             Required
Banks.  The Agreement may be
modified as provided in this Amendment with the agreement of the Required Banks
which means the Banks having sixty percent (60%) of the sum of (i) the
aggregate unpaid principal amount of the outstanding Loans plus (ii) the Letter
of Credit Exposure (such percentage applicable to a Bank, herein such Bank’s “Required
Bank Percentage”). For purposes of determining the effectiveness of this
Amendment, each Bank’s Required Bank Percentage is set forth on Schedule
3.13 hereto.

 

EXECUTED as of
the date first written above.

 

	
   

  	
  Company and Haggar:

  
	
   

  	
   

  
	
   

  	
  HAGGAR
  CLOTHING CO., a Nevada corporation

  
	
   

  	
  HAGGAR
  CORP., a Nevada corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
      /s/
  J.M. Haggar, III

  
	
   

  	
   

  	
  J. M.
  Haggar, III

  
	
   

  	
   

  	
  Chief
  Executive Officer for both

  
	
   

  	
   

  
	
   

  	
  Agent:

  
	
   

  	
   

  
	
   

  	
  JPMORGAN
  CHASE BANK (formerly The Chase

  Manhattan Bank), Individually and as Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  Banks:

  
	
   

  	
   

  
	
   

  	
  GUARANTY
  BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

3

 

Section 3.11.                             Headings.  The headings, captions, and arrangements
used in this Amendment are for convenience only and shall not affect the
interpretation of this Amendment.

 

Section 3.12.                             ENTIRE
AGREEMENT.  THIS AMENDMENT EMBODIES
THE FINAL, ENTIRE AGREEMENT AMONG THE PARTIES HERETO AND SUPERSEDES ANY AND ALL
PRIOR COMMITMENTS, AGREEMENTS, REPRESENTATIONS AND UNDERSTANDINGS, WHETHER
WRITTEN OR ORAL, RELATING TO THIS AMENDMENT, AND MAY NOT BE CONTRADICTED OR
VARIED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OR
DISCUSSIONS OF THE PARTIES HERETO. THERE ARE NO ORAL AGREEMENTS AMONG THE
PARTIES HERETO.

 

Section 3.13.                             Required
Banks.  The Agreement may be
modified as provided in this Amendment with the agreement of the Required Banks
which means the Banks having sixty percent (60%) of the sum of (i) the aggregate
unpaid principal amount of the outstanding Loans plus (ii) the Letter of Credit
Exposure (such percentage applicable to a Bank, herein such Bank’s “Required
Bank Percentage”). For purposes of determining the effectiveness of this
Amendment, each Bank’s Required Bank Percentage is set forth on Schedule
3.13 hereto.

 

EXECUTED as of
the date first written above.

 

	
   

  	
  Company and Haggar:

  
	
   

  	
   

  
	
   

  	
  HAGGAR
  CLOTHING CO., a Nevada corporation

  
	
   

  	
  HAGGAR
  CORP., a Nevada corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  J. M.
  Haggar, III

  
	
   

  	
   

  	
  Chief
  Executive Officer for both

  
	
   

  	
   

  
	
   

  	
  Agent:

  
	
   

  	
   

  
	
   

  	
  JPMORGAN
  CHASE BANK (formerly The Chase

  Manhattan Bank), Individually and as Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
      /s/
  Brian McDougal

  
	
   

  	
   

  	
  Name:

  	
  Brian McDougal, Vice President

  	
   

  
	
   

  	
   

  	
  Title:

  	
  JPMorgan Chase Bank

  	
   

  
	
   

  	
   

  
	
   

  	
  Banks:

  
	
   

  	
   

  
	
   

  	
  GUARANTY
  BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

4

 

Section 3.11.                             Headings.  The headings, captions, and arrangements
used in this Amendment are for convenience only and shall not affect the
interpretation of this Amendment.

 

Section 3.12.                             ENTIRE
AGREEMENT.  THIS AMENDMENT EMBODIES
THE FINAL, ENTIRE AGREEMENT AMONG THE PARTIES HERETO AND SUPERSEDES ANY AND ALL
PRIOR COMMITMENTS, AGREEMENTS, REPRESENTATIONS AND UNDERSTANDINGS, WHETHER
WRITTEN OR ORAL, RELATING TO THIS AMENDMENT, AND MAY NOT BE CONTRADICTED OR
VARIED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OR
DISCUSSIONS OF THE PARTIES HERETO. THERE ARE NO ORAL AGREEMENTS AMONG THE
PARTIES HERETO.

 

Section 3.13.                             Required
Banks.  The Agreement may be
modified as provided in this Amendment with the agreement of the Required Banks
which means the Banks having sixty percent (60%) of the sum of (i) the
aggregate unpaid principal amount of the outstanding Loans plus (ii) the Letter
of Credit Exposure (such percentage applicable to a Bank, herein such Bank’s “Required
Bank Percentage”). For purposes of determining the effectiveness of this
Amendment, each Bank’s Required Bank Percentage is set forth on Schedule
3.13 hereto.

 

EXECUTED as of
the date first written above.

 

	
   

  	
  Company and Haggar:

  
	
   

  	
   

  
	
   

  	
  HAGGAR
  CLOTHING CO., a Nevada corporation

  
	
   

  	
  HAGGAR
  CORP., a Nevada corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  J. M.
  Haggar, III

  
	
   

  	
   

  	
  Chief
  Executive Officer for both

  
	
   

  	
   

  
	
   

  	
  Agent:

  
	
   

  	
   

  
	
   

  	
  JPMORGAN
  CHASE BANK (formerly The Chase

  Manhattan Bank), Individually and as Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  Banks:

  
	
   

  	
   

  
	
   

  	
  GUARANTY
  BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
      /s/
  Robert S. Hays

  
	
   

  	
   

  	
  Name:

  	
      Robert
  S. Hays

  
	
   

  	
   

  	
  Title:

  	
      Senior
  Vice President

  

 

5

 

	
   

  	
  COMERICA
  BANK - TEXAS

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
      /s/
  Margareth Fanini

  
	
   

  	
   

  	
  Name:

  	
   Margareth
  Fanini

  
	
   

  	
   

  	
  Title:

  	
   Assistant
  Vice President

  
	
   

  	
   

  
	
   

  	
  BANK OF
  AMERICA, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  SOUTHWEST
  BANK OF TEXAS, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  U.S. BANK
  NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  THE BANK OF
  NOVA SCOTIA

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

6

 

	
   

  	
  COMERICA
  BANK - TEXAS

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  BANK OF
  AMERICA, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
                /s/
  Chitt Swamidasan

  
	
   

  	
   

  	
  Name:

  	
      Chitt
  Swamidasan

  
	
   

  	
   

  	
  Title:

  	
      Principal

  
	
   

  	
   

  
	
   

  	
  SOUTHWEST
  BANK OF TEXAS, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  U.S. BANK
  NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  THE BANK OF
  NOVA SCOTIA

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

7

 

	
   

  	
  COMERICA
  BANK - TEXAS

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  BANK OF
  AMERICA, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  SOUTHWEST BANK
  OF TEXAS, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
         /s/
  Preston Moore

  
	
   

  	
   

  	
  Name:

  	
     Preston
  Moore

  
	
   

  	
   

  	
  Title:

  	
     Senior
  Vice President

  
	
   

  	
   

  
	
   

  	
  U.S. BANK
  NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  THE BANK OF
  NOVA SCOTIA

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

8

 

	
   

  	
  COMERICA
  BANK - TEXAS

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  BANK OF
  AMERICA, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  SOUTHWEST
  BANK OF TEXAS, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  U.S. BANK
  NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Amanda
  Schmitt

  
	
   

  	
   

  	
  Name:

  	
       Amanda
  Schmitt

  
	
   

  	
   

  	
  Title:

  	
       Assistant
  Vice President

  
	
   

  	
   

  
	
   

  	
  THE BANK OF
  NOVA SCOTIA

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

9

 

	
   

  	
  COMERICA
  BANK - TEXAS

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  BANK OF
  AMERICA, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  SOUTHWEST
  BANK OF TEXAS, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  U.S. BANK
  NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  THE BANK OF
  NOVA SCOTIA

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
         /s/
  William E. Zarrett

  
	
   

  	
   

  	
  Name:

  	
       William
  E. Zarrett

  
	
   

  	
   

  	
  Title:

  	
       Managing
  Director

  

 

10

 

CONSENT OF DOMESTIC SUBSIDIARIES

 

Each of the
undersigned Subsidiaries hereby (a) agrees that the Subsidiary Guaranty to
which it is a signatory is and shall remain in full force and effect; (b)
ratifies and confirms all terms and provisions of the Subsidiary Guaranty to
which it is a signatory, (c) acknowledges its consent and agreement to the
Amendment, (d) reaffirms all agreements and obligations under the Subsidiary
Guaranty to which it is a signatory, with respect to the Loans, the Notes, the
Agreement and all other documents, instruments or agreements governing,
securing or pertaining to the Loans, and (f) represents and warrants that all
requisite corporate action necessary for it to execute this Consent of Domestic
Subsidiaries has been taken.

 

	
   

  	
  BOWIE MANUFACTURING COMPANY, a Nevada corporation

  
	
   

  	
  CORSICANA COMPANY, a Nevada corporation

  
	
   

  	
  DALLAS PANT MANUFACTURING COMPANY, a Nevada corporation

  
	
   

  	
  GREENVILLE PANT MANUFACTURING COMPANY, a Nevada corporation

  
	
   

  	
  MCKINNEY PANT MANUFACTURING COMPANY, a Nevada corporation

  
	
   

  	
  OLNEY MANUFACTURING COMPANY, a Nevada corporation

  
	
   

  	
  WAXAHACHIE GARMENT COMPANY, a Nevada corporation

  
	
   

  	
  LA ROMANA MANUFACTURING CORPORATION, a Nevada corporation

  
	
   

  	
  HAGGAR SERVICES, INC., a Texas corporation

  
	
   

  	
  DUNCAN MANUFACTURING COMPANY, an Oklahoma corporation

  
	
   

  	
  WESLACO CUTTING, INC., a Nevada corporation

  
	
   

  	
  WESLACO SEWING, INC., a Nevada corporation

  
	
   

  	
  HAGGAR DIRECT, INC., a Nevada corporation

  
	
   

  	
  SAN GABRIEL ENTERPRISES, INC., a Texas corporation

  
	
   

  	
  MULTIPLES, U.S.A., INC., a Texas corporation

  
	
   

  	
  EDINBURG DIRECT GARMENT COMPANY, INC., a Texas corporation

  
	
   

  	
  WESLACO DIRECT CUTTING COMPANY, INC., a Texas corporation

  
	
   

  	
  HAGGAR.COM, INC., a Texas corporation

  
	
   

  	
  JERELL CLOTHING MANAGEMENT, INC., a Texas corporation

  
	
   

  	
  JERELL, LTD, a Texas limited partnership

  
	
   

  	
  HAGGAR CANADA, INC, a Nevada corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
                 /s/
  J.M. Haggar, III

  
	
   

  	
   

  	
  J. M. Haggar, III

  
	
   

  	
   

  	
  Chairman/Chief Executive Officer of each Subsidiary

  

 

11

 

SCHEDULE
3.13

to

HAGGAR CORP.

 

SECOND
AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT

 

REQUIRED
BANK PERCENTAGE

 

	
  Bank

  	
   

  	
  Required Bank

  Percentage Held

  	
   

  	
  Banks Agreeing to Second

  Amendment (insert % from

  prior column if Bank signs

  Second Amendment then total

  % in this column)

  	
   

  
	
  JPMorgan
  Chase Bank

  	
   

  	
  17.272727273

  	
  %

  	
  17.272727273

  	
  %

  
	
  Comerica
  Bank

  	
   

  	
  15.454545455

  	
  %

  	
  15.454545455

  	
  %

  
	
  Guaranty
  Bank

  	
   

  	
  15.454545455

  	
  %

  	
  15.454545455

  	
  %

  
	
  Bank
  of America, N.A.

  	
   

  	
  13.636363636

  	
  %

  	
  13.636363636

  	
  %

  
	
  Southwest
  Bank of Texas, N.A.

  	
   

  	
  12.727272727

  	
  %

  	
  12.727272727

  	
  %

  
	
  U.S.
  Bank National Association

  	
   

  	
  12.727272727

  	
  %

  	
  12.727272727

  	
  %

  
	
  The
  Bank of Nova Scotia

  	
   

  	
  12.727272727

  	
  %

  	
  12.727272727

  	
  %

  
	
  TOTAL

  	
   

  	
  100.00

  	
  %

  	
  100.00

  	
  %

  

 

12Exhibit 10(b)

 

COMMERCIAL CONTRACT - IMPROVED PROPERTY

 

1.             PARTIES:  Seller agrees to sell and convey to Buyer the Property described in
Paragraph 2.  Buyer agrees to buy the
Property from Seller for the sales price stated in Paragraph 3.  The parties to this contract are:

 

	
  Seller:

  	
   

  	
  Colinas Crossing, L.P., a
  Texas limited partnership

  
	
  Address:

  	
   

  	
  15111 Luna Road, Suite
  165, Dallas, Texas 75234, 
  Attention:  Steven A. Means

  
	
  Phone:

  	
   

  	
  214-269-3001

  	
  Fax:

  	
  214-956-5544

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  with copies
  to:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Pacific
  Realty Associates, L.P.

  15350 S.W. Sequoia Parkway, Suite 300

  Portland, Oregon 97224

  Attention: F. Michael Nugent

  Phone:  503-624-6300; Fax:  503-624-7755

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  and

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Ralph G.
  Santos
Patton Boggs, LLP

  2001 Ross Avenue

  Suite 3000

  Dallas, Texas 75201

  Phone:  214-758-3544; Fax:  214-758-1550

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Buyer:

  	
   

  	
  Haggar Clothing Co., a
  Nevada corporation

  
	
  Address:

  	
   

  	
  6113 Lemmon Avenue,
  Dallas, Texas 75209, Attention: Legal Department

  
	
  Phone:

  	
   

  	
  214-956-4184

  	
  Fax:

  	
  214-956-4561

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  with a copy
  to:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Martha Harris

  Thompson & Knight LLP

  1700 Pacific Avenue

  Suite 3300

  Dallas, Texas 75201

  Phone:  214-969-1610; Fax:  214-969-1751

  	
   

  

 

2.             PROPERTY:

 

A.           “Property” means that real property situated in Dallas County, Texas at (address)
and that is legally described on the attached Exhibit A together with:

 

(1)         all buildings, improvements, and fixtures;

(2)         all rights, privileges, and appurtenances
pertaining to the Property, including Seller’s right, title and interest in any
minerals, utilities, adjacent streets, alleys, strips, gores, and
rights-of-way;

 

1

 

(4)         Seller’s interest in all licenses and permits
related to the Property;

(5)         Seller’s interest in all third party
warranties or guaranties, if transferable, relating to the Property or any
fixtures;

(7)         all Seller’s tangible personal property
located on the Property that is used in connection with the Property’s
operations, including without
limitation, the personal property described on the attached Exhibit B, but not
including tools and other maintenance equipment and materials having a total
value of less than $1,000.

 

(Describe any exceptions, reservations, or restrictions in
Paragraph 11 or an addendum.)

(If the Property is a condominium, attach condominium addendum.)

 

3.             SALES PRICE:  At or before closing, Buyer will pay the following sales price for the
Property:

 

	
  A.

  	
   

  	
  Cash
  portion payable by Buyer at closing

  	
   

  	
  $

  	
  14,110,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  B.

  	
   

  	
  Sum of all financing
  described in Paragraph 4

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  C.

  	
   

  	
  Sales price (sum of 3A and
  3B)

  	
   

  	
  $

  	
  14,110,000

  	
   

  

 

4.             N/A

 

5.             EARNEST MONEY:

 

A.           Not later than 3 days after the effective date, Buyer must deposit $ 25,000 as earnest money with Allegiance
Title Company, Attn:  Alan Edmonson (title company and escrow agent) at 2100 McKinney, Suite 1200, Dallas, Texas  75201 (title company’s address), Buyer will deposit additional earnest money
of $75,000 on or before / the expiration of the Inspection Period.  The title company is the escrow agent under this contract.

 

B.             If Buyer fails to timely deposit the earnest
money, Seller may terminate this contract by providing written notice to Buyer
before Buyer deposits the earnest money and may exercise Seller’s remedies
under Paragraph 15.

 

C.             Buyer may instruct the escrow agent to deposit
the earnest money in an interest bearing account at a federally insured
financial institution.  All interest accruing on the earnest money
shall become part of the earnest money and shall be disbursed to the party
entitled to the earnest money under this contract.

 

6.             TITLE POLICY, SURVEY, AND
UCC SEARCH:

 

A.           Title Policy:

 

(1)         Seller, at Seller’s expense, will furnish
Buyer an Owner’s Policy of Title Insurance (the title policy) issued by the
title company in the amount of the sales price, dated as of the date of  closing, insuring Buyer against loss under the title policy,
subject only to:

 

2

 

(a)          those title exceptions
permitted by this contract or as may be approved by Buyer in writing; and

(b)         the standard printed
exceptions contained in the promulgated form of title policy unless this
contract provides otherwise.

 

(2)         The standard printed exception as to
discrepancies, conflicts, or shortages in area and boundary lines, or any
encroachment or protrusions, or any overlapping improvements:

o           (a)           will not be amended or deleted from the title
policy.

ý           (b)          will be amended to read “shortages in areas”
at the expense of  ý Buyer o
Seller.

 

(3)         Buyer may object to any restrictive covenants
on the Property within the time required under Paragraph 6D.

 

(4)         Within 10 days after the
effective date, Seller will furnish Buyer a commitment for title insurance (the
commitment) including legible copies of recorded documents evidencing title
exceptions.  Seller authorizes the title
company to deliver the commitment and related documents to Buyer at Buyer’s
address.

 

B.             Survey:

 

(1)         Within 15 days after the
effective date:

 

o           (a)           Buyer will obtain a survey of the Property at
Buyer’s expense and deliver a copy of the survey to Seller.

 

ý           (b)          Seller will furnish Buyer a survey of the
Property dated after the effective date.

 

o           (c)           Seller will deliver a true and correct copy
of Seller’s existing survey of the Property dated
                               .  Seller, at Seller’s expense:

 

o            (i)             will
have the existing survey recertified on a date not earlier than
                                           .

o            (ii)          will
not have the existing survey recertified. 
Seller o will o will
not deliver to the title company an affidavit required by the title company for
approval of the survey that states that Seller knows of no changes or
alterations to the Property as depicted on the survey.

 

(2)         The survey required under Paragraph 6B(1)
must be made by a Registered Professional Land Surveyor acceptable to the title
company.  The survey must:

(a)          identify the Property by metes and bounds or platted lot description;

(b)         show that the survey was made and staked on the ground with corners
permanently marked;

(c)          set forth the dimensions and total area of the Property;

(d)         show the location of all improvements, highways, streets, roads,
railroads, rivers, creeks or other waterways, fences, easements, and
rights-of-way on the Property with all easements and rights-of-way referenced
to their recording information;

(e)          show any discrepancies or conflicts in boundaries, any visible
encroachments, and any portion of the Property lying in a special flood hazard
area (an “A” or “V” zone as shown on the current Federal Emergency Management
Agency (FEMA) flood insurance rate map); and

(f)            contain the surveyor’s certificate that the
survey is true and correct in
the form attached as Exhibit C.

 

C.             UCC Search:

 

ý            (1)          Within
10 days after the effective date, Seller, at
Seller’s expense, will furnish Buyer a Uniform Commercial Code (UCC) search
prepared by a reporting service and dated after the effective date.  The search must identify documents that are
on file with the Texas Secretary of State and the county where the Property is
located that relate to all personal property on the Property and show, as
debtor, Seller, i2 Technologies
US, Inc. (“i2”), and all other
owners of the personal property in the last 5 years.

 

o            (2)          Buyer
does not require Seller to furnish a UCC search.

 

3

 

D.            Buyer’s Objections to the Commitment, Survey,
and UCC Search:

 

(1)         Within 14 days after Buyer
receives the commitment, copies of the documents evidencing title exceptions,
any required survey, and any required UCC search, Buyer may object to matters
disclosed in the items.

 

(2)         Seller may, but is not obligated to, cure
Buyer’s timely objections within 20 days after Seller receives the objections; provided, however, Seller is obligated to
cause the removal of any liens against the Property created by or under Seller
and conveyances of interests in the Property made after the effective date
hereof (“Mandatory Cure Matters”).  The closing date will be extended as
necessary to cure the objections.  If
Seller fails to cure the objections by the time required, Buyer may terminate
this contract by providing written notice to Seller within 5 days after the
time by which Seller must cure the objections. 
If Buyer terminates, the earnest money, less any independent
consideration under Paragraph 7B(3)(a), will be refunded to Buyer.

 

(3)         Buyer’s failure to timely object or terminate
under this Paragraph 6D is a waiver of Buyer’s right to object except that
Buyer will not waive the requirements in Schedule C of the commitment or Seller’s obligation to cure the effects of
the Mandatory Cure Matters.

 

7.              PROPERTY CONDITION:  (Check A or B only.)

 

o            A.           Present Condition:  (Check (1) or (2) only.)

 

o            (1)          Buyer
accepts the Property in its present “as-is” condition.

 

o            (2)          Buyer
accepts the Property in its present condition except that Seller, at Seller’s
expense, will complete the following before closing:

 

.

 

ý            B.             Feasibility:

 

(1)          Delivery of Property Information: 
Within 5 days after the effective date, Seller will
deliver to Buyer the following items to the extent that the items are in
Seller’s possession or are readily available to Seller.  Any item not delivered is deemed not be in
Seller’s possession or readily available to Seller.  The items Seller will deliver are:

(c)          a current inventory of all personal property to be conveyed under this
contract;

(e)          copies of all current service, maintenance, and management agreements
relating to the ownership and operation of the Property (the “Service Contracts”);

(f)            copies of current utility capacity letters
from the Property’s water and sewer service provider;

(g)         copies of all current warranties and guaranties relating to all or part
of the Property;

(j)             a copy of the “as-built” plans and
specifications and plat of the Property;

(k)          copies of all invoices for utilities and repairs incurred by Seller for
the Property  for calendar year 2002 and 2003 year-to-date;

(m)       copies of all previous environmental assessments, studies, or analyses
made on or relating to the Property.

 

4

 

(n)         real  property tax statements
for the Property for the previous 2 calendar years; and
      ;

(o)         information regarding the current ad valorem tax contest with respect
to the Property.

 

 

(2)          Inspections, Studies or Assessments:

 

(a)          Within 60 days after the effective date (the “Inspection Period”),
Buyer, at Buyer’s expense, may complete or cause to be completed inspections,
studies, or assessments of the Property, including all improvements and
fixtures.  Inspections, studies, or
assessments may include, but are not limited to:

(i)             physical property inspections (for example,
structural, pest control, mechanical, structural, electrical, and plumbing
inspections);

(ii)          economic feasibility studies;

(iii)       environmental assessments (for example, soil tests, air sampling, and
paint sampling);

(iv)      engineering studies; and

(v)         compliance inspections (for example, compliance determination with
zoning ordinances, restrictions, building codes, and statutes).

 

(b)         Seller, at Seller’s expense, will turn on all utilities necessary for
Buyer to make inspections, studies, or assessments.

 

(c)          Buyer must:

(i)             employ only trained and qualified inspectors
and assessors;

(ii)          notify Seller, in advance, of when the inspections or assessors will be
on the Property;

(iii)       abide by any reasonable entry rules or requirements that Seller may
require;

(iv)      not interfere with existing operations or occupants of the Property;
and

(v)         restore the Property to its original condition if altered due to
inspections, studies, or assessments that Buyer completes or causes to be
completed.

 

(d)         Except for those matters that arise from the negligence of Seller or
Seller’s agents, Buyer is responsible for any claim, liability, encumbrance,
cause of action, and expenses resulting from Buyer’s inspections, studies, or
assessments, including any property damage or personal injury.  Buyer will indemnify, hold harmless, and
defend Seller and Seller’s agents against any claim involving a matter for
which Buyer is responsible under this paragraph.  Notwithstanding the foregoing, Buyer’s
indemnification obligation shall not extend to or cover any claims,
liabilities, causes of action or expense arising out of the discovery of
hazardous substances or materials, nor shall it cover any diminution in the
value of the Property as a consequence of the results revealed by the Buyer’s
tests and inspections.  Prior to
closing, Buyer shall not disclose any information to third parties regarding
the environmental condition of the Property, or provide any environmental
assessment of the Property to any third parties, without the prior written
authorization of Seller.  If applicable
laws require disclosure of any matter relating to the environmental condition
of the Property, Buyer shall advise Seller of such requirement but Seller shall
be responsible for complying with such requirement.  This
paragraph survives termination of this contract.

 

(3)          Feasibility Periods and Right to Terminate: 
Buyer may terminate this contract for any reason prior to the expiration of the Inspection
Period  by providing Seller with written notice of
termination. If Buyer does not terminate within the time required, Buyer
accepts the Property in its present “as is” condition.  See
Addendum of Additional terms for additional provisions regarding termination.  (Check only one box.)

 

ý            (a)          If
Buyer terminates under this Paragraph 7B(3), the earnest money will be refunded
to Buyer less $ 100 that Seller will retain as independent
consideration for Buyer’s right to terminate. 
Buyer has tendered the independent consideration to Seller upon payment
of the full amount specified in Paragraph 5 to the escrow agent.  The independent consideration is to be
credited to the sales price only upon closing of the sale.

 

5

 

o            (b)         Buyer
has paid Seller
$                                      
as independent consideration for Buyer’s right to terminate by tendering such
amount directly to Seller or Seller’s agent. 
If Buyer terminates under this Paragraph 7B(3), the earnest money will
be refunded to Buyer and Seller will retain the independent consideration.  The independent consideration o will o will
not be credited to the sales price upon closing of the sale.

 

(4)          Return of Property Information:  If
this contract terminates for any reason, Buyer will, not later than 10 days
after the termination date: (i) return to Seller all those items described in
Paragraph 7B(1) that Seller delivered to Buyer and all copies that Buyer made
of those items; and (ii) deliver copies of all inspection and assessment
reports (excluding economic feasibility studies) related to the Property that
Buyer completed or caused to be completed, all of which shall be accepted by Seller without recourse to, or
representation by, Buyer.  This Paragraph 7B(4) survives termination of
this contract.

 

(5)          Contract Affecting Operations: Seller may not enter into, amend, or
terminate any  contract that affects the
operations of the Property without Buyer’s prior written approval unless such contract can be terminated prior
to the closing date or upon 30 days written notice.

 

8.              BROKERS:

 

A.           The brokers to this sale are:

 

	
  N/A

  	
   

  	
   

  	
   

  	
  The Staubach Company

  	
   

  	
   

  
	
  Cooperating Broker

  	
   

  	
  License
  No.

  	
   

  	
  Principal Broker

  	
   

  	
  License
  No.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  15601 Dallas Parkway,
  Suite 400, Addison, TX  75001

  
	
  Address

  	
   

  	
  Address

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  972-361-5208

  	
   

  	
   

  
	
  Phone

  	
   

  	
  Fax

  	
   

  	
  Phone

  	
   

  	
  Fax

  

 

	
   

  	
   

  	
   

  
	
  Cooperating Broker
  represents buyer.

  	
  Principal Broker: (Check only one box)

  
	
   

  	
   

  	
  o 
  represents Seller only.

  
	
   

  	
   

  	
  ý 
  represents Buyer only.

  
	
   

  	
   

  	
  o  is
  an intermediary between Seller and Buyer.

  
				

 

B.             Fees:  (Check only one box.)

 

o            (1)          Seller
will pay Principal Broker the fee specified by separate written commission
agreement between Principal Broker and Seller. 
Principal Broker will pay Cooperating Broker the fee specified in the
Agreement Between Brokers found below the parties’ signatures to this contract.

 

ý            (2)          At
the closing of this sale, Seller will pay:

 

	
  Cooperating Broker a total
  cash fee of:

  	
   

  	
  Principal Broker a total
  cash fee of:

  
	
  o                     
  % of the sales price.

  	
   

  	
  ý  4.5% of the sales price, plus

  
	
  o                                                                 .

  	
   

  	
  ý  $200,000.

  

 

The cash fees will be paid
in Dallas County, Texas.  Seller authorizes escrow agent to pay the brokers from the
Seller’s proceeds at closing.  Such commission shall not be earned or
payable unless and until the closing actually occurs and shall be in lieu of
any compensation payable to Principal Broker by i2 Technologies, Inc.

 

NOTICE:  Chapter 62,
Texas Property Code, authorizes a broker to secure an earned commission with a
lien against the Property.

 

C.             The parties may not amend this Paragraph 8
without the written consent of the brokers affected by the amendment.

 

6

 

9.              CLOSING:

 

A.           The closing of the sale will be on or before the earlier of (i) July 31, 2003 or (ii)
the date which is five (5) days after the closing of the sale of the Lemmon
Avenue Property (as hereinafter defined) to the Lemmon Avenue Buyer (as
hereafter defined)
                
(the closing date).  If either party fails to close by the
closing date, the non-defaulting party may exercise the remedies in
Paragraph 15.

 

B.             At closing, Seller will execute and deliver,
at Seller’s expense, a  o general 
ý 
special warranty deed.  The deed
must include a vendor’s lien if any part of the sales price is financed.  The deed must convey good and indefeasible
title to the Property and show no exceptions other than those permitted under
Paragraph 6 or other provisions of this contract.  Seller must convey the Property at closing:

(1)          with no liens, assessments, or Uniform Commercial Code or other
security interests against the Property which will not be satisfied out of the
sales price unless securing loans Buyer assumes;

(2)          without any assumed loans in default; and

(3)          with no persons in possession of any part of the Property as lessees,
tenants at sufferance, or trespassers.

 

C.             At closing, Seller, at Seller’s expense, will
also deliver:

(1)          tax statements showing no delinquent taxes on the Property;

(2)          a bill of sale with warranties to title conveying title, free and clear
of all liens, to any personal property defined as part of the Property in
Paragraph 2 or sold under this contract;

(4)          to the extent that the following items are assignable, an assignment to
Buyer of the following items as they relate to the Property or its operations:

(a)          licenses and permits;

(b)         maintenance, management, and other contracts; and

(c)          warranties and guaranties;

(6)          evidence that the person executing this contract is legally capable and
authorized to bind Seller; and

(7)          any notices, statements, certificates, affidavits, releases, and other
documents required by this contract, the commitment, or law necessary for the
closing of the sale and the issuance of the title policy, all of which must be
completed and executed by Seller as necessary to satisfy the Title Company, subject, however, to Seller’s approval in
each case, which approval will not be unreasonably withheld.

 

D.            At closing, Buyer will:

(1)          pay the sales price in good funds acceptable to the escrow agent;

(3)          execute and deliver any notices, statements, certificates, or other
documents required by this contract or law necessary to close the sale.

(4)          execute and deliver written confirmation that Buyer has received a copy
of the Declaration of Covenants, Conditions and Restrictions (“CCRs”) dated
April 6, 1994, executed by Park West/Fairview Associates and recorded at
Volume 94066, Page 6090 of the Real Property Records of Dallas County, Texas,
as heretofore supplemented by that certain Supplemental Declaration recorded at
Volume 97231, Page 731 of the Real Property Records of Dallas County, Texas,
and the three amendments of the CCRs.

 

E.              Unless the parties agree otherwise, the
closing documents will be as found in the basic forms in the current edition of
the State Bar of Texas Real Estate Forms Manual without any additional clauses.

 

7

 

10.       POSSESSION:  Seller will deliver possession of the Property to Buyer upon closing
and funding of this sale in its present condition, ordinary wear and tear
excepted.  Until closing, Seller will
operate the Property in the same manner as on the effective date and will not
transfer or dispose of any of the personal property described in Paragraph 2B
or sold under this contract.  Any
possession by Buyer before closing or by Seller after closing that is not
authorized by a separate written lease agreement is a landlord-tenant at sufferance
relationship between the parties,

 

11.       SPECIAL PROVISIONS:  (Identify exhibit if special provisions are contained
in an attachment.)

 

A.           See Addendum of Additional Terms.

 

B.             Buyer acknowledges that Seller has disclosed
to Buyer that Seller intends to contest the 2003 ad valorem taxes for the
Property.  See the Addendum of
Additional Terms attached hereto for additional provisions concerning such
contest.

 

C.             The deed conveying the Property to Buyer
shall require that one monument sign (but not both monument signs) on the
street entrance to the Property retain the name “Two Colinas Crossing” (though
such requirement shall not restrict Buyer’s rights to building signage on the
Property so long as signage complies with the requirements of the CCRs).  Prior to the end of the Inspection Period,
the parties will mutually agree as to all of Buyer’s signage requirements.  The name and logo of Buyer may be placed on
both monument signs.  As between the
name “Two Colinas Crossing” and the name and logo of Buyer, the name and logo
of Buyer will be more prominent.  The
costs to remove the i2 name and logo and add the name and logo of Buyer shall
be borne by Buyer.  The costs to remove,
relocate and/or add the “Two Colinas Crossing” name shall be borne by Seller.

 

12.       SALES EXPENSES:

 

A.           Seller’s Expenses: Seller will pay for the following at or
before closing:

(1)          releases of existing liens, other than those liens assumed by Buyer,
including prepayment penalties and recording fees;

(2)          release of Seller’s loan liability, if applicable;

(3)          tax statements or certificates;

(4)          preparation of the deed and any bill of sale;

(5)          one-half of any escrow fee (such
one-half not to exceed $500);

(6)          costs to record any documents to cure title objections that Seller must
cure; and

(7)          other expenses that Seller will pay under other provisions of this
contract.

 

B.             Buyer’s Expenses: 
Buyer will pay for the following at or before closing:

(1)          all loan expenses (for example, application fees, origination fees,
discount fees, buy-down fees, commitment fees, appraisal fees, assumption fees,
recording fees, tax service fees, mortgagee title policy expenses, credit
report fees, document preparation fees, interest expense that Buyer’s lender
requires Buyer to pay at closing, loan related inspection fees, amortization
schedule fees, courier fees, underwriting fees, wire transfer fees, and other
fees required by Buyer’s lender);

(2)          preparation fees of any deed of trust,

(3)          recording fees for the deed and any deed of trust;

(4)          premiums for flood and hazard insurance as may be required by Buyer’s
lender;

(5)          one-half of any escrow fee;

(6)          copy and delivery fees for delivery of the title commitment and related
documents; and

(7)          other expenses that Buyer will pay under other provisions of this
contract.

 

8

 

13.       PRORATIONS, ROLLBACK TAXES,
ESTOPPEL CERTIFICATES, RENT, AND DEPOSITS:

 

A.           Prorations:

 

(1)          taxes and assessments by
the property owner’s association will
be prorated through the closing date.

 

(2)          If the amount of ad valorem taxes for the year in which the sale closes
is not available on the closing date, taxes will be prorated on the basis of
taxes assessed in the previous year.  If
the taxes for the year in which the sale closes vary from the amount prorated
at closing, the parties will adjust the prorations when the tax statements for
the year in which the sale closes become available.  This Paragraph 13A(2) survives closing.

 

B.             Rollback Taxes:  If
Seller changes the use of the Property before closing or if a denial of a
special valuation on the Property claimed by Seller results in the assessment
of additional taxes, penalties, or interest (assessments) for periods before
closing, the assessments will be the obligation of Seller.  If this sale or Buyer’s use of the Property
after closing results in additional assessments for periods before closing, the
assessments will be the obligation of Buyer. 
This Paragraph 13B survives closing.

 

14.       CASUALTY LOSS AND
CONDEMNATION:

 

A.           If any part of the Property is damaged or destroyed by fire or other
casualty after the effective date, at Buyer’s election, Seller must restore the
Property to its previous condition as soon as reasonably possible and not later
than the closing date or Buyer may:

 

9

 

(1)          terminate this contract and the earnest money, less any independent
consideration under Paragraph 7B(3)(a), will be refunded to Buyer; or

(3)          accept at closing: (i) the Property in its damaged condition; (ii) an
assignment of any insurance proceeds Seller is entitled to receive along with
the insurer’s consent to the assignment; and (iii) a credit to the sales price
on the amount of any unpaid deductible under the policy for the loss.

Buyer agrees that if (x) the
damage is less than $250,000, (y) the damage can be repaired within 90 days,
and (z) Seller commits to perform such repairs in a good a workmanlike manner
(using available insurance proceeds) within such 90 days after the damage
occurs, then Buyer will not have the right to terminate this contract by reason
of the damage, but will have the right to require that Seller restore the
Property to its previous condition.

 

B.             If before closing, condemnation proceedings are commenced against any part of the
Property that will adversely
affect Buyer’s ability to use the Property for its intended purposes, Buyer may:

(1)          terminate this contract by providing written notice to Seller within 15
days after Buyer is advised of the condemnation proceedings and the earnest
money, less any independent consideration under Paragraph 7B(3)(a), will be
refunded to Buyer; or

(2)          appear and defend the condemnation proceedings and any award will, at
Buyer’s election, belong to:

(a)          Seller and the sales price will be reduced by the same amount; or

(b)         Buyer and the sales price will not be reduced.

 

Seller represents that it
has no knowledge of any pending or threatened condemnation affecting the
Property and that it has received no notice of any such condemnation.

 

15.       DEFAULT:

 

A.           If Buyer fails to comply with this contract, Buyer is in default and
Seller, as its sole remedy, may:

(1)          terminate this contract and receive the earnest money as liquidated
damages, thereby releasing the parties from this contract; or

(2)          as provided in the Addendum of Additional Terms attached hereto and
subject to the conditions set forth therein, enforce specific performance.

 

C.             If Seller fails to comply with this contract,
Seller is in default and Buyer, as its sole remedy, may:

(1)          terminate this contract and receive the earnest money less any
independent consideration under Paragraph 7B(3)(a) as liquidated damages
thereby releasing the parties from this contract; or

(2)          enforce specific performance.

 

16.       ATTORNEY’S FEES:  If
Buyer, Seller, any broker, or any escrow agent is a prevailing party in any
legal proceeding brought under or with relation to this contract or this
transaction, such party is entitled to recover from the non-prevailing parties
all costs of such proceeding and reasonable attorney’s fees.  This Paragraph 16 survives termination of
this contract.

 

17.       ESCROW:

 

A.           At closing, the earnest money will be applied to the sales price.

 

B.             If both parties make written demand for the
earnest money, escrow agent may require payment of unpaid expenses

 

10

 

incurred
on behalf of the parties and a written release of liability of escrow agent
from all parties.

 

C.             If one party makes written demand for the
earnest money, escrow agent will give notice of the demand by providing to the
other party a copy of the demand.  If
escrow agent does not receive written objection to the demand from the other
party within 30 days after the date escrow agent sent the demand to the other
party, escrow agent may disburse the earnest money to the party making demand,
reduced by the amount of unpaid expenses incurred on behalf of the party
receiving the earnest money and escrow agent may pay the same to the creditors.

 

D.            Escrow agent will deduct any independent
consideration under Paragraph 7B(3)(a) before disbursing any earnest money to
Buyer and will pay the independent consideration to Seller.

 

E.              If escrow agent complies with this Paragraph
17, each party hereby releases escrow agent from all claims related to the
disbursal of the earnest money.

 

F.              Notices under this Paragraph 17 must be sent
by certified mail, return receipt requested. 
Notices to escrow agent are effective upon receipt by escrow agent.

 

18.       MATERIAL FACTS:  N/A

 

19.       NOTICES:  All notices between the parties under this contract must be in writing
and are effective when hand-delivered, mailed by certified mail return receipt
requested, or sent by facsimile transmission to the parties addresses or
facsimile numbers stated in Paragraph 1. 
The parties will send copies of any notices to the broker representing
the

 

11

 

party
to whom the notices are sent but failure to do so shall not be a default under this Contract.

 

20.       FEDERAL TAX REQUIREMENT:  If
Seller is a “foreign person” as defined by applicable law, or if Seller fails
to deliver at closing an affidavit that Seller is not a foreign person, then
Buyer will withhold from the sales proceeds at closing an amount sufficient to
comply with applicable tax law and deliver the amount withheld to the Internal
Revenue Service (IRS), together with appropriate tax forms.  IRS regulations require filing written
reports if currency in excess of specified amounts is received in the
transaction.

 

21.       DISPUTE RESOLUTION:  The parties agree to negotiate in good faith in an effort to resolve
any dispute related to this contract that may arise.  If the dispute cannot be resolved by negotiation, the parties
will submit the dispute to mediation before resorting to arbitration or
litigation and will equally share the costs of a mutually acceptable
mediator.  This paragraph survives
termination of this contract.  This
paragraph does not preclude a party from seeking equitable relief from a court
of competent jurisdiction.  The parties have no obligation to submit the
dispute to arbitration.

 

22.       AGREEMENT OF THE PARTIES:

 

A.           This contract is binding on the parties, their heirs, executors,
representatives, successors, and permitted assigns.

 

B.             This contract is to be construed in
accordance with the laws of the State of Texas.

 

C.             This contract contains the entire agreement
of the parties and may not be changed except in writing signed by both parties.

 

D.            If this contract is executed in a number of
identical counterparts, each counterpart is an original and all counterparts,
collectively, constitute one agreement.

 

E.              Buyer 
ý may  o may not assign this contract, but only to an
affiliate of Buyer or to another party agreeing to facilitate a tax free
exchange of the Property for other property owned by Buyer.  If Buyer assigns this contract, Buyer will not be relieved of any future liability under this contract.

 

F.              Addenda which are part of this contract are: (Check all that apply.)

 

o            (1)          Property
Description Exhibit identified in Paragraph 2;

o            (2)          Condominium
Addendum;

o            (3)          Financing
Addendum;

o            (4)          Commercial
Property Condition Statement;

o            (5)          Addendum
for Seller’s Disclosure of Information on Lead-Based Paint and Lead-Based Paint
Hazards;

o            (6)          Notice
to Purchaser of Real Property in a Water District (MUD);

o            (7)          Addendum
for Coastal Area Property;

o            (8)          Addendum
for Property Located Seaward of the Gulf Intracoastal Waterway; and

ý            (9)          Addendum
of Additional Terms.

 

(Note:  Counsel for
the Texas Association of REALTORS® (TAR) has determined that any of the
foregoing addendum which are promulgated by the Texas Real Estate Commission
(TREC) or published by TAR are appropriate for use with this form).

 

23.       TIME: Time is of the essence in this
contract.  The parties require strict
compliance with the times for performance. 
If the last day to perform under a provision of this contract falls on a
Saturday, Sunday, or legal holiday, the time for performance is extended until
the end of the next day which is not a Saturday, Sunday, or legal holiday.

 

24.       EFFECTIVE DATE: The effective date of this contract for the
purpose of performance of all obligations is the date the escrow agent receipts
this contract after all parties execute this contract.

 

25.       ADDITIONAL NOTICES:

 

A.           Buyer should have an abstract covering the Property examined by an
attorney of Buyer’s selection, or Buyer should

 

12

 

be
furnished with or obtain a title policy.

 

B.             If the Property is situated in a utility or
other statutorily created district providing water, sewer, drainage, or flood
control facilities and services, Chapter 49, Texas Water Code, requires Seller
to deliver and Buyer to sign the statutory notice relating to the tax rate,
bonded indebtedness, or standby fees of the district before final execution of
this contract.

 

C.             If the Property adjoins or shares a common
boundary with the tidally influenced submerged lands of the state, §33.135,
Texas Natural Resources Code, requires a notice regarding coastal area property
to be included as part of this contract.

 

D.            If the Property is located seaward of the
Gulf Intracoastal Waterway, §61.025, Texas Natural Resources Code, requires a
notice regarding the seaward location of the Property to be included as part of
this contract.

 

E.              If the Property is located outside the limits
of a municipality, the Property may now or later be included in the
extra-territorial jurisdiction (ETJ) of a municipality and may now or later be
subject to annexation by the municipality. 
Each municipality maintains a map that depicts its boundaries and
ETJ.  To determine if the Property is
located within a municipality’s ETJ, Buyer should contact all municipalities
located in the general proximity of the Property for further information.

 

F.              If apartments or other residential units are
on the Property and the units were built before 1978, federal law requires a
lead-based paint and hazard disclosure statement to be made part of this
contract.

 

G.             Brokers are not qualified to perform property
inspections, surveys, engineering studies, environmental assessments, or
inspections to determine compliance with zoning, governmental regulations, or
laws.  Buyer should seek experts to
perform such services.  Selection of
experts, inspectors, and repairmen is the responsibility of Buyer and not the
brokers.

 

26.       CONTRACT AS OFFER: The execution of this contract by the first
party constitutes an offer to buy or sell the Property.  Unless the other party accepts the offer by
5:00 p.m., in the time zone in which the Property is located, on May
           the offer will lapse and become null and
void.

 

13

 

READ THIS
CONTRACT CAREFULLY.  The brokers and
agents make no representation or recommendation as to the legal sufficiency,
legal effect, or tax consequences of this document or transaction.  CONSULT your attorney BEFORE signing.

 

	
  Buyer’s

  	
   

  	
   

  	
  Seller’s

  	
   

  
	
  Attorney is

  	
   

  	
   

  	
  Attorney is

  	
  Steven A.
  Means Interests, Inc., a general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Buyer: HAGGAR CLOTHING CO., a Nevada corporation

  	
   

  	
  Seller: COLINAS CROSSING, L.P., a Texas limited
  partnership

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Frank D. Bracken

  	
   

  	
  By:

  	
  /s/ Steven
  A. Means

  
	
   

  	
   

  	
   

  
	
  Printed Name:

  	
  Frank D. Bracken

  	
   

  	
  Printed Name:

  	
  Steven A.
  Means

  
	
   

  	
   

  	
   

  
	
  Title:

  	
  President and Chief Operating
  Officer

  	
   

  	
  Title:

  	
   President

  
	
   

  	
   

  	
   

  
	
  Date:

  	
   May 8, 2003

  	
   

  	
  Date:

  	
  May 9, 2003

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Buyer:

  	
   

  	
   

  	
  Seller:

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
  Printed Name:

  	
   

  	
   

  	
  Printed Name:

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
   

  
																			

 

AGREEMENT OF BROKER

 

Principal Broker agrees to the terms set
forth in Section 8 of this Contract as being the correct statement of the
agreement between Seller and the Principal Broker regarding Principal Broker’s
fee.  This Agreement of
Broker supersedes any prior offers and agreements for compensation of Principal Broker.

 

 

	
   

  	
   

  	
  The Staubach
  Co.

  	
   

  
	
   

  	
  Principal Broker

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
  /s/ Paul
  Whitman

  	
   

  
						

 

ESCROW RECEIPT

 

Escrow Agent acknowledges receipt of:

ý            A.           the contract on this day May 9, 2003
(effective date);

ý            B.             earnest money in the amount of $ 25,000 in
the form of Company check on May 12, 2003.

 

	
  Escrow Agent:  Allegiance Title Company

  	
   

  	
  Address: 2100 McKinney,
  Suite 1200

  
	
   

  	
   

  	
  Dallas, Texas  75201

  
	
  By:

  	
   /s/ Nancy Colaluca

  	
   

  	
   

  	
  Phone:
      214-954-5444

  
	
   

  	
   

  	
  Fax: 
         214-954-5502

  
					

 

14

 

EXHIBIT A

 

LEGAL DESCRIPTION OF LAND

 

TRACT
2

 

BEING a tract of land situated
in the William P. Shahan Survey, Abstract No. 1337 and being part of
Lot 4, Block 2, Park West Phase III Addition, an addition to the City
of Farmers Branch as recorded in Volume 87112, Page 5310, Deed
Records, Dallas County, Texas, and all of Lot 3, Block A, Doubletree
Club Hotel at Colinas Crossing Addition, an addition to the City of Farmers
Branch as recorded in Volume 98242, Page 29, Deed Records, Dallas
County, Texas, and being more particularly described by metes and bounds as
follows:

 

BEGINNING at a point in the
west line of Luna Road (a variable width R.O.W.), said point being S00°52’07”
W, a distance of 1399.88 feet to the north right-of-way line of Royal Lane (a
100’ R.O.W.);

 

THENCE N89°07’53” W, a distance
of 643.11 feet to a point for corner, said point being on the east line of
Farmers Branch Creek (an impoundment easement recorded in Volume 87112,
Page 5310);

 

THENCE along the east line of
Farmers Branch Creek the following:

N06°30’00” E a
distance of 221.75 feet to a point for corner;

NORTH a
distance of 409.57 feet to a point for corner;

 

THENCE S89°07’53” E, departing
the east line of said Farmers Branch Creek, a distance of 627.56 feet to a
point for corner, said point being on the west right-of-way line of said Luna
Road;

 

THENCE S00°52’07” W, continuing
along the west right-of-way line of said Luna Road, a distance of 630.20 feet
to the Point of Beginning and containing 9.074 acres of land.

 

 

Basis of Bearings:

Final Plat of Park West
Phase III

City of Farmers Branch, Texas

Vol. 87112, Page 5310
D.R.D.C.T.

 

 

EXHIBIT B

 

 

List of Personal Property

 

 

1.               See
AudioVisual. Inventory attached.

 

2.               See
Furniture Inventory attached.

 

3.               Kitchen
equipment presently on site.

 

4.               Information
technology equipment presently on site.

 

 

Two i2 Place Audio Visual Inventory

 

	
  Qty.

  	
   

  	
  Office Location

  	
   

  	
  Location

  	
   

  	
  Manufacture

  	
   

  	
  Model #

  	
   

  	
  Description

  	
   

  	
  Value

  	
   

  
	
  Brazil
  Conference Room

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  Brazil Conference Rm.

  	
   

  	
  DaLite

  	
   

  	
  Cosmopolitian

  	
   

  	
  84x84 Matte White Projection
  Screen

  	
   

  	
  $

  	
  300.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  Brazil Conference Rm.

  	
   

  	
  Epson

  	
   

  	
  7700p

  	
   

  	
  Ceiling mounted LCD
  projector

  	
   

  	
  $

  	
  3,999.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  Brazil Conference Rm.

  	
   

  	
  Panasonic

  	
   

  	
  Pro Line

  	
   

  	
  VCR

  	
   

  	
  $

  	
  100.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  Brazil Conference Rm.

  	
   

  	
  TOA

  	
   

  	
  A903MK2

  	
   

  	
  Eight input amp

  	
   

  	
  $

  	
  250.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  Brazil Conference Rm.

  	
   

  	
  AMX

  	
   

  	
  VPX-GS

  	
   

  	
  View Point touch panel
  wireless remote

  	
   

  	
  $

  	
  1,000.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  Brazil Conference Rm.

  	
   

  	
  AMX

  	
   

  	
  AXB-VOL3

  	
   

  	
  3 Channel Volume Control

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  Brazil Conference Rm.

  	
   

  	
  AMX

  	
   

  	
  UPC-20

  	
   

  	
  Universal Power Controller

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Subtotal:

  	
   

  	
  $

  	
  5,649.00

  	
   

  
	
  China
  Conference Room

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  China Conference Rm.

  	
   

  	
  DaLite

  	
   

  	
  Cosmopolitian

  	
   

  	
  84x84 Matte White Projection
  Screen

  	
   

  	
  $

  	
  300.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  China Conference Rm.

  	
   

  	
  Espon

  	
   

  	
  7700p

  	
   

  	
  Ceiling mounted LCD
  projector

  	
   

  	
  $

  	
  3,999.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  China Conference Rm.

  	
   

  	
  Panasonic

  	
   

  	
  Pro Line

  	
   

  	
  VCR

  	
   

  	
  $

  	
  100.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  China Conference Rm.

  	
   

  	
  TOA

  	
   

  	
  A903MK2

  	
   

  	
  Eight input amp

  	
   

  	
  $

  	
  250.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  China Conference Rm.

  	
   

  	
  AMX

  	
   

  	
  VPX-GS

  	
   

  	
  View Point touch panel
  wireless remote

  	
   

  	
  $

  	
  1,000.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  China Conference Rm.

  	
   

  	
  AMX

  	
   

  	
  AXB-VOL3

  	
   

  	
  3 Channel Volume Control

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  China Conference Rm.

  	
   

  	
  AMX

  	
   

  	
  UPC-20

  	
   

  	
  Universal Power Controller

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Subtotal:

  	
   

  	
  $

  	
  5,649.00

  	
   

  
	
  America
  Conference Room

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  America Conference Rm.

  	
   

  	
  DaLite

  	
   

  	
  Cosmopolitian

  	
   

  	
  84x84 Matte White Projection
  Screen

  	
   

  	
  $

  	
  300.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  America Conference Rm.

  	
   

  	
  Sharp

  	
   

  	
  XG-NV6XU

  	
   

  	
  Ceiling mounted LCD
  projector

  	
   

  	
  $

  	
  3,200.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  America Conference Rm.

  	
   

  	
  Panasonic

  	
   

  	
  Pro Line

  	
   

  	
  VCR

  	
   

  	
  $

  	
  100.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  America Conference Rm.

  	
   

  	
  TOA

  	
   

  	
  A903MK2

  	
   

  	
  Eight input amp

  	
   

  	
  $

  	
  250.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  America Conference Rm.

  	
   

  	
  AMX

  	
   

  	
  VPX-GS

  	
   

  	
  View Point touch panel
  wireless remote

  	
   

  	
  $

  	
  1,000.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  America Conference Rm.

  	
   

  	
  AMX

  	
   

  	
  AXB-VOL3

  	
   

  	
  3 Channel Volume Control

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  America Conference Rm.

  	
   

  	
  AMX

  	
   

  	
  UPC-20

  	
   

  	
  Universal Power Controller

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Subtotal:

  	
   

  	
  $

  	
  4,850.00

  	
   

  
	
  The
  Vista Conference Room

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  The Vista Conference Rm.

  	
   

  	
  DaLite

  	
   

  	
  Cosmopolitian

  	
   

  	
  84x84 Matte White Projection
  Screen

  	
   

  	
  $

  	
  300.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  The Vista Conference Rm.

  	
   

  	
  Sharp

  	
   

  	
  XG-NV6XU

  	
   

  	
  Ceiling mounted LCD
  projector

  	
   

  	
  $

  	
  3,200.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  The Vista Conference Rm.

  	
   

  	
  Panasonic

  	
   

  	
  Pro Line

  	
   

  	
  VCR

  	
   

  	
  $

  	
  100.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  The Vista Conference Rm.

  	
   

  	
  TOA

  	
   

  	
  A903MK2

  	
   

  	
  Eight input amp

  	
   

  	
  $

  	
  250.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  The Vista Conference Rm.

  	
   

  	
  AMX

  	
   

  	
  VPX-GS

  	
   

  	
  View Point touch panel
  wireless remote

  	
   

  	
  $

  	
  1,000.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  The Vista Conference Rm.

  	
   

  	
  AMX

  	
   

  	
  AXB-VOL3

  	
   

  	
  3 Channel Volume Control

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  The Vista Conference Rm.

  	
   

  	
  AMX

  	
   

  	
  UPC-20

  	
   

  	
  Universal Power Controller

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Subtotal:

  	
   

  	
  $

  	
  4,850.00

  	
   

  
	
  The Austria
  Conference Room

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  Austria Conference Rm.

  	
   

  	
  DaLite

  	
   

  	
  Cosmopolitian

  	
   

  	
  84x84 Matte White Projection
  Screen

  	
   

  	
  $

  	
  300.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  Austria Conference Rm.

  	
   

  	
  Sharp

  	
   

  	
  XG-NV6XU

  	
   

  	
  Ceiling mounted LCD
  projector

  	
   

  	
  $

  	
  3,200.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  Austria Conference Rm.

  	
   

  	
  Panasonic

  	
   

  	
  Pro Line

  	
   

  	
  VCR

  	
   

  	
  $

  	
  100.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  Austria Conference Rm.

  	
   

  	
  TOA

  	
   

  	
  A903MK2

  	
   

  	
  Eight input amp

  	
   

  	
  $

  	
  250.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  Austria Conference Rm.

  	
   

  	
  AMX

  	
   

  	
  VPX-GS

  	
   

  	
  View Point touch panel
  wireless remote

  	
   

  	
  $

  	
  1,000.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  Austria Conference Rm.

  	
   

  	
  AMX

  	
   

  	
  AXB-VOL3

  	
   

  	
  3 Channel Volume Control

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  Austria Conference Rm.

  	
   

  	
  AMX

  	
   

  	
  UPC-20

  	
   

  	
  Universal Power Controller

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Subtotal:

  	
   

  	
  $

  	
  4,850.00

  	
   

  
	
  The
  Panarama Conference Room

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  Panarama Conference Rm.

  	
   

  	
  DaLite

  	
   

  	
  Cosmopolitian

  	
   

  	
  84x84 Matte White Projection
  Screen

  	
   

  	
  $

  	
  300.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  Panarama Conference Rm.

  	
   

  	
  Sharp

  	
   

  	
  XG-NV6XU

  	
   

  	
  Ceiling mounted LCD
  projector

  	
   

  	
  $

  	
  3,200.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  Panarama Conference Rm.

  	
   

  	
  Panasonic

  	
   

  	
  Pro Line

  	
   

  	
  VCR

  	
   

  	
  $

  	
  100.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  Panarama Conference Rm.

  	
   

  	
  TOA

  	
   

  	
  A903MK2

  	
   

  	
  Eight input amp

  	
   

  	
  $

  	
  250.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  Panarama Conference Rm.

  	
   

  	
  AMX

  	
   

  	
  VPX-GS

  	
   

  	
  View Point touch panel
  wireless remote

  	
   

  	
  $

  	
  1,000.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  Panarama Conference Rm.

  	
   

  	
  AMX

  	
   

  	
  AXB-VOL3

  	
   

  	
  3 Channel Volume Control

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  Panarama Conference Rm.

  	
   

  	
  AMX

  	
   

  	
  UPC-20

  	
   

  	
  Universal Power Controller

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Subtotal:

  	
   

  	
  $

  	
  4,850.00

  	
   

  
	
  The
  India Conference Room

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  The India Conference Rm.

  	
   

  	
  DaLite

  	
   

  	
  Cosmopolitian

  	
   

  	
  84x84 Matte White Projection
  Screen

  	
   

  	
  $

  	
  300.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  The India Conference Rm.

  	
   

  	
  Sharp

  	
   

  	
  XG-NV6XU

  	
   

  	
  Ceiling mounted LCD
  projector

  	
   

  	
  $

  	
  3,200.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  The India Conference Rm.

  	
   

  	
  Panasonic

  	
   

  	
  Pro Line

  	
   

  	
  VCR

  	
   

  	
  $

  	
  100.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  The India Conference Rm.

  	
   

  	
  TOA

  	
   

  	
  A903MK2

  	
   

  	
  Eight input amp

  	
   

  	
  $

  	
  250.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  The India Conference Rm.

  	
   

  	
  AMX

  	
   

  	
  VPX-GS

  	
   

  	
  View Point touch panel
  wireless remote

  	
   

  	
  $

  	
  1,000.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  The India Conference Rm.

  	
   

  	
  AMX

  	
   

  	
  AXB-VOL3

  	
   

  	
  3 Channel Volume Control

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  The India Conference Rm.

  	
   

  	
  AMX

  	
   

  	
  UPC-20

  	
   

  	
  Universal Power Controller

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Subtotal:

  	
   

  	
  $

  	
  4,850.00

  	
   

  

 

 

	
  Conference Rooms with Screens

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  Denmark Conference Room

  	
   

  	
  DaLite

  	
   

  	
  Cosmopolitian

  	
   

  	
  84x84 Matte White Projection Screen

  	
   

  	
  $

  	
  300.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  Canada Conference Room

  	
   

  	
  DaLite

  	
   

  	
  Cosmopolitian

  	
   

  	
  84x84 Matte White Projection Screen

  	
   

  	
  $

  	
  300.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  Norway Conference Room

  	
   

  	
  DaLite

  	
   

  	
  Cosmopolitian

  	
   

  	
  84x84 Matte White Projection Screen

  	
   

  	
  $

  	
  300.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  Team Room 2050

  	
   

  	
  DaLite

  	
   

  	
  Cosmopolitian

  	
   

  	
  84x84 Matte White Projection Screen

  	
   

  	
  $

  	
  300.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  Team Room 2048

  	
   

  	
  DaLite

  	
   

  	
  Cosmopolitian

  	
   

  	
  84x84 Matte White Projection Screen

  	
   

  	
  $

  	
  300.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  Team Room 2126

  	
   

  	
  DaLite

  	
   

  	
  Cosmopolitian

  	
   

  	
  84x84 Matte White Projection Screen

  	
   

  	
  $

  	
  300.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  Team Room 2128

  	
   

  	
  DaLite

  	
   

  	
  Cosmopolitian

  	
   

  	
  84x84 Matte White Projection Screen

  	
   

  	
  $

  	
  300.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  Team Room 2169

  	
   

  	
  DaLite

  	
   

  	
  Cosmopolitian

  	
   

  	
  84x84 Matte White Projection Screen

  	
   

  	
  $

  	
  300.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  Team Room 3050

  	
   

  	
  DaLite

  	
   

  	
  Cosmopolitian

  	
   

  	
  84x84 Matte White Projection Screen

  	
   

  	
  $

  	
  300.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  Team Room 3048

  	
   

  	
  DaLite

  	
   

  	
  Cosmopolitian

  	
   

  	
  84x84 Matte White Projection Screen

  	
   

  	
  $

  	
  300.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  Team Room 3126

  	
   

  	
  DaLite

  	
   

  	
  Cosmopolitian

  	
   

  	
  84x84 Matte White Projection Screen

  	
   

  	
  $

  	
  300.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  Team Room 3128

  	
   

  	
  DaLite

  	
   

  	
  Cosmopolitian

  	
   

  	
  84x84 Matte White Projection Screen

  	
   

  	
  $

  	
  300.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  Team Room 3169

  	
   

  	
  DaLite

  	
   

  	
  Cosmopolitian

  	
   

  	
  84x84 Matte White Projection Screen

  	
   

  	
  $

  	
  300.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  Team Room 4050

  	
   

  	
  DaLite

  	
   

  	
  Cosmopolitian

  	
   

  	
  84x84 Matte White Projection Screen

  	
   

  	
  $

  	
  300.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  Team Room 4026

  	
   

  	
  DaLite

  	
   

  	
  Cosmopolitian

  	
   

  	
  84x84 Matte White Projection Screen

  	
   

  	
  $

  	
  300.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  Team Room 4126

  	
   

  	
  DaLite

  	
   

  	
  Cosmopolitian

  	
   

  	
  84x84 Matte White Projection Screen

  	
   

  	
  $

  	
  300.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  Team Room 4128

  	
   

  	
  DaLite

  	
   

  	
  Cosmopolitian

  	
   

  	
  84x84 Matte White Projection Screen

  	
   

  	
  $

  	
  300.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  Team Room 4169

  	
   

  	
  DaLite

  	
   

  	
  Cosmopolitian

  	
   

  	
  84x84 Matte White Projection Screen

  	
   

  	
  $

  	
  300.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  Team Room 5050

  	
   

  	
  DaLite

  	
   

  	
  Cosmopolitian

  	
   

  	
  84x84 Matte White Projection Screen

  	
   

  	
  $

  	
  300.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  Team Room 5026

  	
   

  	
  DaLite

  	
   

  	
  Cosmopolitian

  	
   

  	
  84x84 Matte White Projection Screen

  	
   

  	
  $

  	
  300.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  Team Room 5126

  	
   

  	
  DaLite

  	
   

  	
  Cosmopolitian

  	
   

  	
  84x84 Matte White Projection Screen

  	
   

  	
  $

  	
  300.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  Team Room 5128

  	
   

  	
  DaLite

  	
   

  	
  Cosmopolitian

  	
   

  	
  84x84 Matte White Projection Screen

  	
   

  	
  $

  	
  300.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  Team Room 5169

  	
   

  	
  DaLite

  	
   

  	
  Cosmopolitian

  	
   

  	
  84x84 Matte White Projection Screen

  	
   

  	
  $

  	
  300.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  Team Room 5169

  	
   

  	
  DaLite

  	
   

  	
  Cosmopolitian

  	
   

  	
  84x84 Matte White Projection Screen

  	
   

  	
  $

  	
  300.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  Team Room 6126

  	
   

  	
  DaLite

  	
   

  	
  Cosmopolitian

  	
   

  	
  84x84 Matte White Projection Screen

  	
   

  	
  $

  	
  300.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  Team Room 6128

  	
   

  	
  DaLite

  	
   

  	
  Cosmopolitian

  	
   

  	
  84x84 Matte White Projection Screen

  	
   

  	
  $

  	
  300.00

  	
   

  
	
  1

  	
   

  	
  LNA2

  	
   

  	
  Team Room 6169

  	
   

  	
  DaLite

  	
   

  	
  Cosmopolitian

  	
   

  	
  84x84 Matte White Projection Screen

  	
   

  	
  $

  	
  300.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Subtotal:

  	
   

  	
  $

  	
  8,100.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Total:

  	
   

  	
  $

  	
  43,648.00

  	
   

  

 

 

FURNITURE INVENTORY

 

	
   

  	
   

  	
  Floor

  	
   

  	
  Total

  	
   

  
	
  Item Description

  	
   

  	
  1

  	
   

  	
  2

  	
   

  	
  3

  	
   

  	
  4

  	
   

  	
  5

  	
   

  	
  6

  	
   

  	
   

  
	
  Kidney Shape Desk

  	
   

  	
  32

  	
   

  	
  58

  	
   

  	
  78

  	
   

  	
  112

  	
   

  	
  115

  	
   

  	
  110

  	
   

  	
  505

  	
   

  
	
  Aeron Chair

  	
   

  	
  38

  	
   

  	
  93

  	
   

  	
  134

  	
   

  	
  132

  	
   

  	
  138

  	
   

  	
  138

  	
   

  	
  673

  	
   

  
	
  Stool

  	
   

  	
  29

  	
   

  	
  56

  	
   

  	
  77

  	
   

  	
  115

  	
   

  	
  131

  	
   

  	
  128

  	
   

  	
  536

  	
   

  
	
  Pedistal Drawer File

  	
   

  	
  33

  	
   

  	
  61

  	
   

  	
  86

  	
   

  	
  120

  	
   

  	
  126

  	
   

  	
  121

  	
   

  	
  547

  	
   

  
	
  Overhead Unit

  	
   

  	
  64

  	
   

  	
  126

  	
   

  	
  163

  	
   

  	
  253

  	
   

  	
  253

  	
   

  	
  233

  	
   

  	
  1092

  	
   

  
	
  Shelf Unit

  	
   

  	
  31

  	
   

  	
  60

  	
   

  	
  86

  	
   

  	
  120

  	
   

  	
  122

  	
   

  	
  116

  	
   

  	
  535

  	
   

  
	
  Work Surface

  	
   

  	
  37

  	
   

  	
  89

  	
   

  	
  133

  	
   

  	
  122

  	
   

  	
  127

  	
   

  	
  124

  	
   

  	
  632

  	
   

  
	
  Conferece Table

  	
   

  	
  19

  	
   

  	
  8

  	
   

  	
  18

  	
   

  	
  14

  	
   

  	
  10

  	
   

  	
  9

  	
   

  	
  78

  	
   

  
	
  Conference Chair

  	
   

  	
  99

  	
   

  	
  59

  	
   

  	
  58

  	
   

  	
  75

  	
   

  	
  49

  	
   

  	
  76

  	
   

  	
  416

  	
   

  
	
  Guest Chair

  	
   

  	
  81

  	
   

  	
  10

  	
   

  	
  40

  	
   

  	
  24

  	
   

  	
  45

  	
   

  	
  37

  	
   

  	
  237

  	
   

  
	
  AV Cabinet

  	
   

  	
  1

  	
   

  	
  1

  	
   

  	
  1

  	
   

  	
  4

  	
   

  	
  4

  	
   

  	
  4

  	
   

  	
  15

  	
   

  
	
  Lateral Files

  	
   

  	
  14

  	
   

  	
  6

  	
   

  	
  9

  	
   

  	
  7

  	
   

  	
  11

  	
   

  	
  13

  	
   

  	
  60

  	
   

  
	
  Book Case

  	
   

  	
  0

  	
   

  	
  4

  	
   

  	
  0

  	
   

  	
  2

  	
   

  	
  0

  	
   

  	
  3

  	
   

  	
  9

  	
   

  
	
  Lounge Chairs

  	
   

  	
  9

  	
   

  	
  14

  	
   

  	
  15

  	
   

  	
  15

  	
   

  	
  20

  	
   

  	
  28

  	
   

  	
  101

  	
   

  
	
  Task Chairs (not Aeron)

  	
   

  	
  3

  	
   

  	
  12

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  3

  	
   

  	
  18

  	
   

  
	
  Table

  	
   

  	
  20

  	
   

  	
  11

  	
   

  	
  3

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  34

  	
   

  
	
  Workstation

  	
   

  	
  5

  	
   

  	
  28

  	
   

  	
  47

  	
   

  	
  2

  	
   

  	
  3

  	
   

  	
  2

  	
   

  	
  87

  	
   

  
	
  Rolling Whiteboard

  	
   

  	
  0

  	
   

  	
  2

  	
   

  	
  2

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  3

  	
   

  	
  7

  	
   

  
	
  Tower File Cabinet

  	
   

  	
  4

  	
   

  	
  28

  	
   

  	
  45

  	
   

  	
  2

  	
   

  	
  2

  	
   

  	
  2

  	
   

  	
  83

  	
   

  
	
  Bar Stool

  	
   

  	
  4

  	
   

  	
  4

  	
   

  	
  5

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  13

  	
   

  

 

EXHIBIT C

 

The certification, manually
signed and sealed by the surveyor, which must be in substantially the following
form:

 

“To: Colinas Crossing, L.P.;
Haggar Clothing Co.; Allegiance Title Company; and [Underwriter]

 

I hereby
certify that on the           day
of
                   ,
2003:

 

a.               this
survey was made on the ground as per the field notes shown on this survey and
correctly shows (i) the boundaries and areas of the subject property and the
size, location and type of buildings and improvements thereon (if any) and the
distance therefrom to the nearest facing exterior property lines of the subject
property; (ii) the location of all rights-of-way, easements and any other
matters of record (or of which I have knowledge or have been advised, whether
or not of record) affecting the subject property; (iii) all abutting dedicated
public streets providing access to the subject property together with the width
and name thereof; and (iv) all other significant items on the subject property;

 

b.              except
as shown on the survey, there are no (i) encroachments upon the subject
property by improvements on adjacent property, (ii) encroachments on adjacent
property, streets or alleys by any improvements on the subject property, (iii)
encroachments by improvements onto easements located on the subject property
(iv) party walls, or (v) conflicts or protrusions;

 

c.               adequate
ingress to and egress from the subject property is provided by (name of
streets), the same being paved, dedicated public right(s)-of-way maintained by
(name of maintaining authority);

 

d.              all
required building set back lines on the subject property are located as shown
hereon;

 

e.               no
part of the subject property lies within a flood plain or flood prone area or a
flood way of any body of water; and

 

 

f.                 this
survey (i) conforms to the current standards promulgated by the Texas Board of
Professional Land Surveying; and (ii) conforms to the current Texas Society of
Professional Surveyors Standards and Specifications for a Category 1A,
Condition II Survey.

 

	
   

  	
  (Signature of Surveyor)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Registered
  Public Land Surveyor

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Registration
  No.
                     ”

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (Name,
  address, telephone number

  and job number of Surveyor).

  	
   

  

 

 

ADDENDUM OF ADDITIONAL TERMS

 

This Addendum
of Additional Terms (this “Addendum”) is attached to and made a part of that
certain Commercial Contract-Improved Property between Colinas Crossing L.P., as
Seller, and Haggar Clothing Co., as Buyer (this “Contract”).

 

1.               Sale of Lemmon Avenue Facility.  Buyer has entered into a contract (the
“Lemmon Avenue Contract”) to sell its corporate headquarters at 6113 Lemmon
Avenue in Dallas, Texas (the “Lemmon Avenue Property”).   The buyer under the Lemmon Avenue Contract
is referred to herein as the “Lemmon Avenue Buyer”.  It is understood that Buyer has retained the unilateral right to
terminate the Lemmon Avenue Contract for any reason or no reason, but prior to
the end of the Inspection Period such unilateral right will expire, whereupon
Buyer will promptly notify Seller that Buyer no longer has such unilateral
right.  Thereafter, the Lemmon Avenue
Buyer will continue to have a right for a period of time to unilaterally
terminate the Lemmon Avenue Contract. 
If, however, the Lemmon Avenue Contract is not terminated and the Lemmon
Avenue Buyer completes the purchase of the Lemmon Avenue Property, but Buyer
fails to complete the purchase of the Property under this Contract for any
reason other than Seller’s
default or a permitted termination pursuant to other express provisions of this
Contract, then (and only then) Seller shall have the right to enforce Buyer’s
obligation to purchase the Property by an action for specific performance.

 

2.               As-Is. 
NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS CONTRACT, IT
IS UNDERSTOOD AND AGREED THAT THE PROPERTY IS BEING SOLD AND CONVEYED “AS IS”
WITH ANY AND ALL FAULTS WITHOUT ANY EXPRESS OR IMPLIED REPRESENTATION OR
WARRANTY BY SELLER EXCEPT AS EXPRESSLY SET FORTH HEREIN AND IN THE DEED AND
BILL OF SALE TO BE DELIVERED AT CLOSING.

 

3.               Representations and Warranties of Seller.  Seller hereby represents and warrants the
following to Buyer, which representations and warranties shall be deemed also
made by Seller to Buyer as of the closing date:

 

(a)          Effective as of the earlier of (x)
May 30, 2003 or (y) the date the i2 Lease Termination Agreement (hereafter
defined) is executed, (i) the i2 Lease is terminated, (ii) i2 has no further
right to occupy the Property, (iii) i2 has conveyed to Seller and Seller is in
possession of the personal property described on Exhibit B, and (iv)
Seller owns the personal property described on Exhibit B free and clear
of any liens or encumbrances.

 

(b)         There are no leases affecting the Property and
no parties in possession of the Property except for Seller’s management office,
which lease will be terminated and vacated prior to closing.

 

1

 

(c)          This Contract is a valid and binding
obligation of the Seller.  No
authorizations or approvals, whether of governmental bodies or otherwise will
be necessary in order for Seller to enter into and perform this Contract.  Neither the execution and delivery of this
Contract nor the consummation of the transactions contemplated hereunder will,
to the best of Seller’s knowledge, conflict with or result in the breach of any
law, regulation, writ, injunction or decree of any court or governmental
instrumentality applicable to Seller.

 

(d)         Seller is not aware of any pending or
threatened litigation, condemnation or assessment affecting the Property.

 

4.               Service Contracts.  Prior to the end of the Inspection Period,
Buyer shall identify to Seller those Service Contracts which it desires to be
terminated and those which it desires to assume as of the closing date,
provided the same are assumable (“Surviving Contracts”).  Seller will cause those designated for
termination to be terminated as of the closing date.  All payments due or previously made under any Surviving Contract
shall be prorated as of the closing date.

 

5.               Survival.  Any right of action of Buyer for the breach by Seller of any representation,
warranty or covenant contained herein shall not merge with the deed delivered
at closing but shall survive the closing. 
Any suit by Buyer for any breach by Seller of any representation,
warranty or covenant contained herein must be filed on or before one year after
the closing date or shall be forever barred. 
Additionally, all agreements and indemnities of Seller and Buyer set
forth in this Contract shall, to the extent not consummated at closing, survive
the closing of the transaction contemplated by this Contract.

 

6.               Conflict.  If a conflict arises between the provisions of this Addendum and
any other part of this Contract, this Addendum shall modify and supersede such
other part of this Contract to the extent necessary to eliminate any such
conflict but no further.  All terms
which are defined in this Contract shall have the same meaning when used in
this Addendum and vice versa, unless otherwise defined herein.

 

7.               Confidentiality.  Prior to closing, Seller and Buyer each
agree to make no public announcement of the transaction which is the subject of
this Contract and each further agrees to use its good faith efforts to keep
such transaction confidential, except that the parties may disclose the
transaction and its terms to their respective attorneys, accountants, lenders
and investors.  After closing, Seller or
Buyer shall have the right to make a public announcement of the transaction;
provided, however such public announcement shall not include the amount of the
purchase price or the amount of the termination fee paid by i2, which amounts
shall remain confidential in all respects (except in connection with any
contest of the ad valorem taxes for the Property and as required by applicable
laws and regulations, including, without limitation, those promulgated by the
Securities and Exchange Commission).

 

2

 

8.               Further Agreements by Seller.  Seller agrees to indemnify and hold Buyer
harmless from and against, and to reimburse Buyer with respect to, any and all
claims, demands, causes of action, loss, damage, liabilities, costs and
expenses (including attorneys’ fees and court costs) asserted against or
incurred by Buyer by reason of or arising out of the ownership, maintenance
and/or operation of the Property prior to the closing date.

 

9.               Further Agreements by Buyer.  Buyer agrees to indemnify and hold Seller
harmless from and against, and to reimburse Seller with respect to, any and all
claims, demands, causes of action, loss, damage, liabilities, costs and
expenses (including attorneys’ fees and court costs) asserted against or
incurred by Seller by reason of or arising out of the ownership, maintenance
and/or operation of the Property on or subsequent to the closing date.

 

10.         Section 1031 Exchange.  Either party (“exchanging party”) may
consummate the purchase of the Property as part of a so-called like kind
exchange (the “Exchange”) pursuant to Section 1031 of the Internal Revenue Code
of 1986, as amended (the “Code”), provided that (a) the closing shall not be
delayed or affected by reason of the Exchange, nor shall the consummation or
accomplishment of the Exchange be a condition precedent or condition subsequent
to the exchanging party’s obligations under this Contract; (b) the exchanging party
shall effect the Exchange through an assignment of this Contract, or its rights
under the Contract, to a qualified intermediary and the other party
(“accommodating party”) shall not be required to take an assignment of the
acquisition agreement for the relinquished property or be required to acquire
or hold title to any real property for purposes of consummating the Exchange;
and (c) the exchanging party shall pay any additional costs that would not
otherwise have been incurred by the exchanging party or the accommodating party
had the exchanging party not consummated its purchase through the
Exchange.  The accommodating party shall
not by this Contract or acquiescence to the Exchange (i) have its rights under
this Contract affected or diminished in any manner; (ii) be responsible for
compliance with or be deemed to have warranted to the exchanging party that the
Exchange in fact complies with Section 1031 of the Code; or (iii) be obligated
to incur any expenses related to the Exchange.

 

11.         Rule of Construction Inapplicable.  The parties acknowledge and confirm that
each of their respective attorneys have participated jointly in the review and
revision of this Contract and that it has not been written solely by counsel
for one party.  The parties hereto therefore
stipulate and agree that the rule of construction to the effect that any
ambiguities are to or may be resolved against the drafting party shall not be
employed in the interpretation of this Contract to favor either party against
the other.

 

12.         Real Estate Commissions.  Each party hereto agrees to indemnify and
hold harmless the other party from and against any and all claims, losses,
damages, costs or expenses of any kind or character arising out of or resulting
from any agreement, arrangement or understanding (except as set forth in
Paragraph 8B of this Contract) alleged to have been made by such party or on
its behalf with any broker or finder in connection with this Contract or the
transaction contemplated hereby.

 

3

 

13.         i2 Lease Termination Agreement.  Seller is currently negotiating a
termination of the lease agreement between i2 and Seller with respect to the
Property.  In the event Seller is unable
to enter into a written termination agreement with i2 (the “i2 Lease
Termination Agreement”) within five (5) business days of the effective date
hereof, which agreement will permit Seller to make the representations in
Section 3(a) of this Addendum, Seller may terminate this contract upon written notice
to Buyer prior to the expiration of such five (5) business day period, in which
event the parties shall have no further obligations to each other except those
which expressly survive termination of this contract and the earnest money will
be returned to Buyer.

 

14.         Contest of 2003 Property Taxes.  Seller intends to engage Deloitte &
Touche to represent Seller in connection with a contest of 2003 ad valorem
taxes assessed against the Property. 
Seller shall provide to Buyer a copy of its agreement with Deloitte
& Touche with respect to such representation (the “Contest Agreement”)
promptly after such agreement is executed and in any event no later than ten
days prior to the end of the Inspection Period.  Buyer shall be entitled to be advised from time to time about the
status of the contest under the Contest Agreement, but Seller shall control the
contest and shall have the exclusive right to give directions to Deloitte &
Touche under the Contest Agreement and to make any settlement with the appraisal
district and/or other taxing authority; provided, however, that Seller will
not, without Buyer’s prior written approval in each case, give any such
directions or make any settlement that is binding upon or purports to bind
Buyer (1) with respect to taxes assessed against the Property or any part
thereof for any year other than 2003, or (2) that involves a lesser reduction of the taxes assessed
against, or the appraised value of, the Property because of a settlement of a
contest of the taxes assessed against, or any appraised value of, another
property.  If 2003 ad valorem taxes
against the Property are reduced by reason of any contest made pursuant to the
Contest Agreement, then the fees and expenses payable to Deloitte & Touche
with respect to the Property (up to an amount not in excess of such reduction)
will, for purposes of computing the pro ration of taxes under this Contract, be
added to and treated the same as the 2003 ad valorem taxes against the
Property.

 

15.         Adjustments to the Description of Personal Property.  The list of personal property set forth as
Exhibit B to this Contract includes property Seller expects to acquire from
i2.  Seller expects to finalize
arrangements for such acquisition soon after this Contract is executed.  If Seller determines that changes to Exhibit
B are required because of the final arrangements made between Seller and i2,
Seller may provide a revised Exhibit B to this Contract to Seller no later than
5 business days after the effective date of this Contract, in which event the
revised Exhibit B provided by Seller will replace and supercede the Exhibit B
currently attached, and Buyer will continue to have the right during the
Inspection Period to terminate this Contract if Buyer is not satisfied with the
revised Exhibit.

 

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00055-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00055-of-00352.parquet"}]]