Court Opinion

ID: 4072163
Source: CourtListenerOpinion
Date Created: 2016-09-30 02:43:42.222792+00
Date Added: 2024-06-11T14:32:24.335361
License: Public Domain

ACCEPTED
                                                                           03-15-00100-CV
                                                                                   6678421
                                                                THIRD COURT OF APPEALS
                                                                           AUSTIN, TEXAS
                                                                     8/27/2015 11:28:32 AM
                                                                         JEFFREY D. KYLE
                                                                                    CLERK
                    NO. 03-15-00100-CV

             IN THE COURT OF APPEALS            FILED IN
                                         3rd COURT OF APPEALS
     FOR THE THIRD JUDICIAL DISTRICT OF TEXAS AUSTIN, TEXAS
                     AT AUSTIN           8/27/2015 11:28:32 AM
                                                   JEFFREY D. KYLE
                                                        Clerk
    IN RE THE ESTATE OF EDELL WADE, DECEASED.

                JAMES E. WADE,
                    Appellant,
                       v.
JOHNNY WADE AND AMANDA WADE, INDIVIDUALLY AND
AMANDA WADE AS THE INDEPENDENT EXECUTOR OF THE
            ESTATE OF EDELL WADE,
                    Appellees.

Appealed from the County Court at Law of Burnet County, Texas

             APPELLANT’S BRIEF IN REPLY
                TO APPELLEES’ BRIEF

                           RICHIE & GUERINGER, P.C.
                           SHELDON E. RICHIE
                           State Bar No. 16877000
                           EMILY J. SEIKEL
                           State Bar No. 24072331
                           100 Congress Avenue, Suite 1750
                           Austin, Texas 78701
                           512-236-9220 telephone
                           512-236-9230 facsimile
                           srichie@rg-austin.com Email
                           eseikel@rg-austin.com Email
                           ATTORNEYS FOR JAMES E. WADE

             ORAL ARGUMENT REQUESTED
                                              TABLE OF CONTENTS

INDEX OF AUTHORITIES ...................................................................................3

REPLY TO APPELLEES’ PRELIMINARY STATEMENT .............................4

REPLY TO APPELLEES’ ARGUMENTS ON ISSUE ONE ...........................10
   A.           Appellees’ Response Ignored That Bud Had No Legal Duty or Standing
                Until 2010 ................................................................................................................ 11
   B.           The Discovery Rule Does Apply to Bud’s Claims .................................................. 12
   C.           Bud Did Not Have Notice of His Claims ................................................................. 14
   D.           The Trial Court’s Summary Judgment was Based on Limitations, and
                Limitations Alone .................................................................................................... 16
REPLY TO APPELLEES’ ARGUMENTS ON ISSUE TWO ..........................17
   A.           Amanda Wade Testified that She Did Not Think About Fairness or Benefit
                to Edell ..................................................................................................................... 18
   B.           The Evidence does Not Support that Edell was Represented by Counsel in
                Both Transactions .................................................................................................... 19
   C.           The Evidence does Not Support that Edell Voluntarily, and with Full
                Disclosure, Chose to Sell the Ranch and Chose to Reduce the Principal in
                Connection with the Modification ........................................................................... 21
PRAYER .................................................................................................................25

CERTIFICATE OF COMPLIANCE ..................................................................26
CERTIFICATE OF SERVICE ............................................................................27

APPENDIX .............................................................................................................28
VERIFICATION....................................................................................................31

                                                                     2
                                   INDEX OF AUTHORITIES

Cases
Boucher v. Willis, 236 S.W.2d 519 ..........................................................................11
Chapal v. Vela, 461 S.W.2d 466 ..............................................................................11

Cobb v. TDCJ, 965 S.W.2d 59.................................................................................10

In re Estate of Herring, 970 S.W.2d 583 .................................................................10
Jordan v. Lyles, 455 S.W.3d 785 .............................................................................24

Kansa Reinsurance Co. V. Congressional Mortgage Corp., 20 F3d 1362 .............11

Matter of Estate of Matejek, 928 S.W.2d 742 .........................................................10
Moczygemba v. Moczygemba, -- S.W.3d --, No. 04-14-00110, 2015 WL 704405 .12

Mooney v. Harlin, 622 S.W.2d 83 ...........................................................................11

Stephen County Museum, Inc. v. Swenson, 571 S.W.2d 257 ...................................18
Texas Bank and Trust Co. v. Moore, 595 S.W.2d 502 ............................................18
Vogt v. Warnock, 107 S.W.3d 778 .................................................................... 18, 23

                                                      3
           REPLY TO APPELLEES’ PRELIMINARY STATEMENT
      1.     Appellees’ list of “Bud’s representations vs. the evidence” in their

Preliminary Statement contains inaccuracies. In reply Appellant would show the

following.

      2.     Alleged misrepresentation #1:             Appellees’ evidence does not

controvert Bud’s representations that “Johnny and Amanda Wade were the

clients of Michael Martin,” and that “there is no evidence that [Mrs. Wade]

had the benefit of independent advice.” First, it is an undeniable fact that Mr.

Martin clearly and repeatedly identified Johnny and Amanda as the ‘client’ in the

physical file he created at the time in 2009 and that he was paid for his work on the

Modification by Amanda Wade, not Edell Wade.1 While Michael Martin did

testify at the trial in 2014 that he believed that Edell Wade had been his client, he

also testified that he had considered the Modification a “joint project.”2 Mr.

Martin further confirmed that he could have used the unique file number that he

used for previous work he had done directly for Edell, yet he chose to list Johnny

and Amanda as clients with a separate file number for his work on the

1
      RR:          Vol. 3 of 4 at 14, 15, 19, 21 [Tab J, Martin & Millican File]; and
      SUPP. RR:    Vol. 2 of 6 at 116:17 – 118:1 [Tab K, Martin Trial Testimony].
2
      SUPP RR:     Vol. 2 of 6 at 87:21-24 [Tab K, Martin Trial Testimony].

                                             4
Modification. 3 He acknowledged that communications on the Modification were

sent directly to Amanda and that Amanda paid for the work.4

      3.     Mr. Martin’s testimony that he believed he had an obligation to serve

Edell’s interests does not, however, demonstrate that she had “the benefit of

independent advice.” There is absolutely no evidence that Edell Wade was aware

at all of the principal reduction of around $40,000.00, and the Modification

document stated on its face in bold letters that its “SOLE PURPOSE” was

elimination of interest. 5 Mr. Martin’s file entry on the matter stated that the note

was to be modified for either an elimination of interest or reduction of the

principal.6 Mr. Martin could hardly have given independent advice on something

he knew nothing about, and he testified ignorance on the principal reduction. Mr.

Martin testified “I may not have remembered at that time that they even talked

about reducing the balance. And to this day I don’t know if or how much they

reduced it” and that he thought he was reducing the interest to zero. 7 He testified

that he did not scrutinize the numbers as “I really didn’t know what was going on.

It changed two or three times. I really didn’t know and hoped that with the

accountant they would work it out to where everybody was happy,” and “I didn’t

3
      SUPP RR:     Vol. 2 of 6 at 116:2-19 [Tab K, Martin Trial Testimony].
4
      SUPP RR:     Vol. 2 of 6 at 116:20 – 118:1 [Tab K, Martin Trial Testimony].
5
      RR:          Vol. 3 of 4 at 39-46 [Tab L, Modification Agreement].
6
      RR:          Vol. 3 of 4 at 15 [Tab J, Martin & Millican File].
7
      SUPP RR:     Vol. 2 of 6 at 121:13 – 122:8 [Tab K, Martin Trial Testimony].

                                            5
imagine they wanted my input.”8          Mr. Martin could not have provided any

meaningful independent counsel because he was not cognizant of the fact that a

principal reduction was even occurring as part of the Modification, much less in

what amount.

      4.     Nor did Edell receive independent counsel from her accountant Lori

Graham. In her testimony Ms. Graham confirmed that the post-it note that advised

her of the elimination of interest had been delivered to her by Amanda Wade with

other documents for her work in 2010 on Edell’s 2009 taxes.9 The post-it note was

written by Amanda Wade several months after the Modification and states that

payments with interest were made only through May, and that Edell “then relieved

us of our interest and changed our note to principal only.” 10 It contains no mention

of a gift or a principal reduction.11 Ms. Graham confirmed that Amanda was her

point of contact and she testified that Edell didn’t actually come in to get her

return, and that she hadn’t spoken with Edell in several years. 12 Ms. Graham

testified that she went off of the information provided to her to prepare Edell’s tax

returns and that she would have needed to know about a forgiveness of debt or gift

8
      SUPP RR:     Vol. 2 of 6 at 88:12-25 [Tab K, Martin Trial Testimony].
9
      SUPP RR:     Vol. 3 of 6 at 8:6 – 9:20 [Tab M, Lori Graham Trial Testimony].
10
      RR:          Vol. 3 of 4 at 3 [Tab N, Amanda Wade Note to Lori Graham]; and
      SUPP RR:     Vol. 3 of 6 at 132 [Tab O, Amanda Wade Trial Testimony].
11
      RR:          Vol. 3 of 4 at 3 [Tab N, Amanda Wade Note to Lori Graham]; and
      SUPP RR:     Vol. 3 of 6 at 132 [Tab O, Amanda Wade Trial Testimony].
12
      SUPP RR:     Vol. 3 of 6 at 9:12 – 20; 12:15 – 16; 12:2-3 [Tab M, Lori Graham Trial
                   Testimony].

                                            6
or other details of a loan restructure but that she did not interview Edell Wade to

get the details.13 Ms. Graham testified that she “probably” spoke with Mr. Martin

but she did not recall the specifics. She stated “I do know that the modification

was not my recommendation.”14

      5.      Alleged misrepresentation #2: Appellees have not controverted Bud’s

representation that the only hard evidence of communication between Mr. Martin

and Edell is dated after the execution of the Modification.15 Johnny’s self-serving

testimony that he took his mother to Mr. Martin’s office and left the room while

they discussed it is (a) not confirmed by Mr. Martin and (b) was never mentioned

by Johnny Wade or anyone else in prior deposition testimony or other discovery

conducted during more than three years leading up to trial. And, as already

discussed, the terms “Mrs. Wade” and “client” are frequently used in Mr. Martin’s

file to reference Amanda Wade. Mr. Martin did not testify that he spoke with

Edell Wade.

      6.      Alleged misrepresentation #3: Appellees have not produced any

evidence that Edell wanted the Modification, in particular the $40,000.00 reduction

in principal, other than self-serving testimony from Johnny and Amanda. The

reliable evidence supports the other view: the Modification that Edell signed

13
      SUPP RR:      Vol. 3 of 6 at 16:21 – 19:5 [Tab M, Lori Graham Trial Testimony].
14
      SUPP RR:      Vol. 3 of 6 at 21:11 – 24 [Tab M, Lori Graham Trial Testimony].
15
      RR:           Vol. 3 of 4 at 20 [Tab J, Martin & Millican File].

                                            7
stated on its face in bold lettering that its “SOLE PURPOSE” was only for the

elimination of interest.16 The testimony of Mr. Martin and Ms. Graham – the

individuals who were not a party to the transaction and who were in a position to

ostensibly implement Edell’s wishes – confirmed that they were not aware of a

principal reduction and did not speak with Edell about a principal reduction.

      7.     Alleged misrepresentation #4: Appellants claim that Cavness never

rejected the material terms about which Bud complains, but this too is not

supported by the evidence.       Amanda herself testified that Mr. Cavness had

questioned the price and also recommended a “regular interest rate.” 17               The

documents show that Amanda reduced the default interest rate from 18% to 12%. 18

      8.     Alleged misrepresentation #5: The jury was permitted to hear only a

limited testimony on the 2004 sale of the ranch to Johnny and Amanda, and

specifics about the sale were not discussed.         Appellant was not able to, for

example, call an expert to appraise the fair market value of the ranch. At trial, in

response to an objection to testimony about the sale, Judge Savage directed counsel

during trial: “So we can’t go into the specific facts of the sale other than to allow

plaintiff to show part of a plan or scheme to defraud her from the beginning.” 19

16
      RR:          Vol. 3 of 4 at 39-46 [Tab L, Modification Agreement].
17
      SUPP RR:      Vol. 3 of 6 at 57:4-7 [Tab O, Amanda Wade Trial Testimony]; and
      CR:          407 [Tab P, Amanda Wade Deposition].
18
      CR:          364 – 380 [Tab Q, Pat Cavness File].
19
      SUPP RR:     Vol. 3 of 6 at 46 [Tab R, Judge Savage Statement During Trial].

                                           8
      9.    Alleged misrepresentation #6: Bud’s testimony at trial is irrelevant to

the legal question that was improperly decided at summary judgment regarding

whether or not he had a duty of reasonable diligence to investigate the terms of the

2004 sale of the ranch (as discussed more fully herein) and whether improper fact-

findings were made at summary judgment prior to trial.

      10.   Moreover, Bud’s professed vague suspicion did not serve as notice to

toll the limitations period. He attempted to obtain details on the sale of the ranch

from Nancy and was unsuccessful. Nancy Burns testified that Johnny purposefully

decided to conceal the sale from the other siblings before it happened. She recalled

suggesting to him that he notify the other siblings of the sale by letter, but that

“Johnny said no, that the place would not ever sell if they ever found out.”20

Nancy testified that Johnny said he would not send a letter “because he was afraid

that somebody would object and that the place would not sell.” 21 Johnny also

testified that he did not notify other people about the sale or its terms. 22 Amanda

also testified that information on the sale was deliberately not sent to the other

siblings. 23 Bud, a third party who had no duty in terms of diligence, was decidedly

not on notice of its terms and did not find out the terms until the passing of his

mother when, in connection with the administration of her Estate, he had access to

20
      SUPP RR:     Vol. 2 of 6 at 39:6 – 24 [Tab S, Nancy Burns Trial Testimony].
21
      SUPP RR:     Vol. 2 of 6 at 41:7 – 12 [Tab S, Nancy Burns Trial Testimony].
22
      SUPP RR:     Vol. 5 of 6 at 9:23 – 10:5 [Tab T, Johnny Wade Trial Testimony].
23
      SUPP RR:     Vol. 3 of 6 at 141 – 142 [Tab O, Amanda Wade Trial Testimony].

                                           9
information previously undisclosed. As he testified, the sale “was all done in

secret.”24 The very existence of conflicting testimony on what Bud could have

known or what he should have done to find out proves the Appellant’s point as to

Issue One – summary judgment was improper because there were disputed issues

of material fact that were for a jury, not a judge, to assess.

            REPLY TO APPELLEES’ ARGUMENTS ON ISSUE ONE
      11.    In their summary judgment arguments to the Trial Court, Appellees

did not meet their “particularly heavy burden” to establish their affirmative defense

of limitations and to either (i) conclusively negate the applicability of the discovery

rule or, if the discovery rule does apply, (ii) conclusively establish that the

limitations was not tolled by showing that there is no genuine issue of material fact

about when Bud discovered or should have discovered through reasonable

diligence, the nature of the injury.          Cobb v. TDCJ, 965 S.W.2d 59, 61

(Tex.App.―Houston 1st Dist.] 1998, no writ); Matter of Estate of Matejek, 928
S.W.2d 742 (Tex.App.―Corpus Christi, 1996) writ denied per curiam; In re

Estate of Herring, 970 S.W.2d 583, at 586 (Tex.App.—Corpus Christi 1998, no

pet.) (“Specifically, a defendant seeking summary judgment on the basis of

limitations must prove when the cause of action accrued and, when applicable,

must negate the discovery rule by proving as a matter of law that there no genuine

24
      SUPP RR:      Vol. 4 of 6 at 43:23 [Tab U, Bud Wade Trial Testimony].

                                           10
issue of fact about when the plaintiff discovered or should have discovered the

nature of the injury.”). Appellees have failed to meet their burden as to both.

A.     Appellees’ Response Ignored That Bud Had No Legal Duty or Standing
       Until 2010
       12.   Bud had no duty of reasonable diligence to discover the terms of the

2004 sale of the ranch, nor did he have standing to challenge it, until after the death

of his mother, Edell Wade, in 2010 when he became a beneficiary of her Estate.

Bud was neither a party to the 2004 sale nor a third-party beneficiary.            For

purposes of limitations, a person may not be charged with constructive notice of

the actual knowledge discernible from examination of public records unless that

person was “under an obligation to search the records.” Kansa Reinsurance Co. v.

Congressional Mortgage Corp., 20 F.3d 1362, 1370 (5th Cir. 1994); Boucher v.

Willis, 236 S.W.2d 519 (Tex.Civ.App.—Eastland 1951) (the absence of a legal

duty to examine deed records bars constructive notice). It was not until Bud

became a beneficiary of the Estate after his mother’s passing that he was charged

with a duty to investigate the contents of the probate records, and he fulfilled that

duty. Mooney v. Harlin, 622 S.W.2d 83, 84 (Tex. 1981); see also Chapal v. Vela,

461 S.W.2d 466, 470 (Tex.Civ.App.—Corpus Christi 1970) (charging devisees

under a will with constructive notice of all of the ownership of land by the father’s

estate).

                                          11
B.    The Discovery Rule Does Apply to Bud’s Claims
      13.    The evidence of Bud’s injury is “objectively verifiable” and the nature

of his injury is “inherently undiscoverable.”      Appellees’ summary judgment

arguments to the Trial Court were insufficient to show otherwise and their current

arguments also fail.

      14.    The recent case relied upon by Appellees is distinguishable from the

instant case; moreover, it was a fact-specific holding and does not stand for the

general proposition Appellees urge, that “there is no ‘objectively verifiable’

evidence of wrongdoing when a mother sells her ranch to her son and his wife” and

the discovery rule is therefore inapplicable. See page 32 of Appellees’ Brief;

Moczygemba v. Moczygemba, --- S.W.3d ---, No. 04-14-00110, 2015 WL 704405

(Tex.App.—San Antonio, Feb 18, 2015, n.p.h.).

      15.    Moczygemba addressed a dispute between a living mother (who was

the plaintiff), and her sons, to whom she had transferred real property for below

market value years prior. 2015 WL 704405. She claimed she did not realize that

she had conveyed mineral rights along with the land, despite the fact that the

inclusion of mineral rights was readily apparent on the deeds. After reciting

testimony from the mother about her intentions and the sons’ intentions, the court

found no objectively verifiable evidence of an injury based on the deeds. Id. at *6.

                                         12
      16.    In the instant case, there is no available testimony from Edell

regarding her intentions as to the sale of the ranch in 2004. Even if she had a

reason to sell the Ranch at below-market value, there remains objectively

verifiable evidence of injury to her and to Bud individually. The terms of this

seller-financed sale, in addition to the purchase price itself, caused injury to Edell

and to Bud as a beneficiary of her Estate and the Note itself (which was not

recorded) provides objectively verifiable evidence of that. The Note required

Johnny and Amanda to pay Edell – who was 89 years old at the time – $500,000

over a period of 32 years, and at an annual interest rate of two percent (2%). 25 This

meant that Edell would have to live to be 121 years old in order to be fully paid on

the Note. 26 Thus, in lieu of the Ranch – by far the most significant asset in Edell’s

possession – and in lieu of payment for that asset (even a below-market value lump

sum), Edell and her Estate received comparatively insignificant monthly payments

of $1,848 and later just $1,200 (after the Modification in 2009).

      17.    The injury is also “inherently undiscoverable.” First, Bud had no duty

of reasonable diligence until his mother passed in 2010. Moreover, he nonetheless

did exercise reasonable diligence and could not discover the terms of the Note.

First, the publicly recorded documents did not reveal the purchase price nor the

25
      RR:    Vol. 3 of 4 at 58-66 [Tab V, Promissory Note].
26
      RR:    Vol. 3 of 4 at 58-66 [Tab V, Promissory Note].

                                            13
terms of the Note. 27 Second, Johnny purposefully decided to conceal the sale from

the other siblings before it happened. Nancy Burns testified that she suggested that

the other children be notified of the sale by letter, but that “Johnny said no, that the

place would not ever sell if they ever found out.”28 Nancy testified that Johnny

said he would not send a letter “because he was afraid that somebody would object

and that the place would not sell.”29 Johnny also testified that he did not notify

other people about the sale or its terms. 30 Amanda also testified that information

on the sale was deliberately not sent to the other siblings. 31

      18.    The discovery rule is applicable.

C.    Bud Did Not Have Notice of His Claims
      19.    The Appellees did not carry their high burden at summary judgment

to conclusively demonstrate that Bud had notice of his claims, and the absence of

any disputed issues of material fact on the issue of notice. Bud’s attempt to obtain

details from Nancy and inability to do so, coupled with Johnny’s intentional

decision not to disclose the terms of the sale, evidences his lack of notice. He

could not have gleaned the details of the Note from the public records because they

were not there.

27
      Appellees incorrectly state that the purchase price of $500,000 was of public record as of
      March 2004. The Deed of Trust does not state “purchase price,” rather identifies the
      amount of principal that was financed. Tab W, CR 86.
28
      SUPP RR:      Vol. 2 of 6 at 39:6 – 24 [Tab S, Nancy Burns Trial Testimony].
29
      SUPP RR:      Vol. 2 of 6 at 41:7 – 12 [Tab S, Nancy Burns Trial Testimony].
30
      SUPP RR:      Vol. 5 of 6 at 9:23 – 10:5 [Tab T, Johnny Wade Trial Testimony].
31
      SUPP RR:      Vol. 3 of 6 at 141 – 142 [Tab O, Amanda Wade Trial Testimony].

                                              14
      20.    In their current brief, Appellees refer to an interrogatory response

where Bud stated his belief that Johnny and Amanda pressured Edell into selling

the ranch and that they took advantage of her. See page 35 of Appellees’ Brief.

His response does not say he thought that “at the time” of the sale, and is not

evidence of notice.

      21.    Bud’s testimony at trial is, needless to say, not informative to whether

the Appellees carried their burden as movant in a summary judgment proceeding

conducted prior to trial. Nonetheless, the testimony cited to by Appellees also does

not serve to conclusively establish that he had notice and that the limitations period

cannot be tolled. The recorded documents did not reveal critical information on

the terms of the deal. Johnny and Amanda explicitly testified that they deliberately

did not reveal information to their siblings. 32 Bud testified it was all done in

secret.33 There is no denying that there were material issues of disputed fact on the

issue of notice and reasonable diligence, and disposition by summary judgment

was premature and improper. The Trial Court, as explained in Appellants’ Brief,

made improper findings of fact. 34

32
      SUPP RR:        Vol. 5 of 6 at 9:23 – 10:5 [Tab T, Johnny Wade Trial Testimony]; and
      SUPP RR:        Vol. 3 of 6 at 141 – 142 [Tab O, Amanda Wade Trial Testimony].
33
      SUPP RR:        Vol. 4 of 6 at 43:23 [Tab U, Bud Wade Trial Testimony].
34
      RR:             Vol. 2 of 4 at 66, 75 [Tab X, Summary Judgment Hearing Transcript].

                                              15
D.    The Trial Court’s Summary Judgment was Based on Limitations, and
      Limitations Alone
      22.    Appellees’ attempt to argue that the Trial Court granted summary

judgment on grounds in addition to limitations is wrong at best, and disingenuous

at worst. The transcript of the summary judgment hearing and Court’s ruling is in

the appellate record. It is more than clear that the Court’s basis for the ruling was

limitations. At the hearing, Judge Savage asked, noting the period during which

Edell Wade was living after the 2004 sale:

             “Why didn’t the son call mom and say, Mom what’s
             going on? . . . he was aware of the fact that there was a
             sale but didn’t inquire of his mother or anyone else what
             the terms of the sale were. If he was so concerned about
             all of this, why didn’t he inquire using the - - I’m not
             talking about going down and digging through public
             records. I’m talking about picking up the phone or
             dropping by and saying, what’s going on?” 35

             “All right. After hearing the evidence -- and let me just
             say this. I know that families, kids and families, may take
             advantage of a parent to the detriment of the other kids. I
             also know that sons don't want to rock the boat if mama
             is happy and bring her into the picture of a possible
             conflict between the kids. They want their mom to have a
             happy home, happy life. And I don't think that possibly
             mom got the best deal, but at the same time mom got
             other benefits as a result of this deal. And that is to have
             someone at the ranch caring for her. I can understand
             why he insisted upon buying the ranch if he was going to
             live there and take care of mom. Then that would be in

35
      RR:    Vol. 2 of 4 at 66 [Tab X, Summary Judgment Hearing Transcript].

                                           16
             effect, in my mind, a part of the consideration of the sale
             of the ranch, was that promise from her son.” 36

      23.    As pointed out in Appellants’ Brief, this statement is replete with

language that implicates impression, inference, and fact-finding that properly

should be the provenance of the jury.             This statement also unequivocally

demonstrates that the basis for the ruling was limitations.

         REPLY TO APPELLEES’ ARGUMENTS ON ISSUE TWO
      24.    The Court instructed the jury that Johnny and Amanda were

fiduciaries to Edell and, as such, they bore the burden to prove that they complied

with their fiduciary duty in connection with the Modification. The instruction to

the jury was that Johnny and Amanda had to prove each and every item of a list of

required conduct.     The only way to show compliance with their fiduciary

obligations was to prove by a preponderance of the evidence each of the following:

      (a) The transaction in question was fair and equitable to Edell Wade; and

      (b) [Johnny and Amanda] made reasonable use of the confidence that Edell
          Wade placed in [them]; and

      (c) [Johnny and Amanda] acted in the utmost good faith and exercised the
          most scrupulous honesty toward Edell Wade; and

      (d) [Johnny and Amanda] placed the interests of Edell Wade before [their]
          own, did not use the advantage of [their] position to gain any benefit for
          [themselves] at the expense of Edell Wade, and did not place
          [themselves] in any position where [their] self-interest might conflict
          with [their] obligations as a fiduciary. 37
36
      RR:    Vol. 2 of 4 at 75 [Tab X, Summary Judgment Hearing Transcript].
37
      CR:    1541, 1543 [Tab Y, Charge to the Court].

                                           17
[emphasis added.]

      25.    Texas law applies a presumption of unfairness to transactions between

a fiduciary and a party to whom the fiduciary owes her duties. Texas Bank and

Trust Co. v. Moore, 595 S.W.2d 502 (Tex. 1980).              “Critical” to determining

whether there was a breach of fiduciary duty is the ‘determination of whether there

was under the circumstances a good faith effort on the party of [the party claiming

validity] to fully inform [Edell] of the nature and effect of the transactions.” Vogt

v. Warnock, 107 S.W.3d at 778. Both Johnny and Amanda had a duty to ensure

that Edell’s decisions in connection with the Modification were the result of

“voluntary and intelligent consideration.”         Stephen County Museum, Inc. v.

Swenson, 571 S.W.2d 257, at 261 (Tex. 1974).

A.    Amanda Wade Testified that She Did Not Think About Fairness or
      Benefit to Edell
      26.    Amanda Wade testified that she did not think about the Modification

in terms of fairness.38 She did so despite her awareness that she held a power of

attorney and that she and Edell had a relationship of trust and confidence.39 She

testified that the Modification “obviously benefited me.” 40 She testified that she

38
      SUPP RR:      Vol. 3 of 6 at 130:8-9, 139 [Tab O, Amanda Wade Trial Testimony].
39
      SUPP RR:      Vol. 3 of 6 at 59, 129 – 130, 124 - 125 [Tab O, Amanda Wade Trial
                    Testimony].
40
      SUPP RR:      Vol. 3 of 6 at 130:15 [Tab O, Amanda Wade Trial Testimony].

                                           18
didn’t consider whether the Modification would be financially beneficial to Edell.41

She acknowledged that Edell received less money as a result of the Modification

and that it benefited herself and Johnny. 42 The payments dropped from $1,848 to

$1,200.43

B.    The Evidence does Not Support that Edell was Represented by Counsel
      in Both Transactions
      27.    It is undisputed that Amanda fired Edell’s long-time attorney Pat

Cavness – an attorney whom Edell was paying 44 – in the middle of negotiations

over the sale of the ranch in 2004. Amanda testified that “I did decide not to use

Pat anymore.” 45    She testified she recalled “he questioned the price.” 46          She

testified “I contacted Armbrust & Brown.” 47 Amanda testified further that she

never took Edell to the Armbrust & Brown offices in Austin and that no lawyer

from the firm came out to meet with Edell either.48 She testified that she paid the

legal fees for the Armbrust & Brown deal, and the communications from the firm

were directed to her, not to Edell. 49

41
      SUPP RR:      Vol. 3 of 6 at 135[Tab O, Amanda Wade Trial Testimony].
42
      SUPP RR:      Vol. 3 of 6 at 131, 138 - 139[Tab O, Amanda Wade Trial Testimony].
43
      SUPP RR:      Vol. 3 of 6 at 127, 138 – 139 [Tab O, Amanda Wade Trial Testimony].
44
      CR:           383 [Tab Q, Pat Cavness File].
45
      SUPP RR:      Vol. 3 of 6 at 55:24 [Tab O, Amanda Wade Trial Testimony].
46
      SUPP RR:      Vol. 3 of 6 at 57:6-7 [Tab O, Amanda Wade Trial Testimony].
47
      SUPP RR:      Vol. 3 of 6 at 58:8 [Tab O, Amanda Wade Trial Testimony].
48
      SUPP RR:      Vol. 3 of 6 at 58:9-23 [Tab O, Amanda Wade Trial Testimony].
49
      SUPP RR:      Vol. 3 of 6 at 59 [Tab O, Amanda Wade Trial Testimony].

                                           19
      28.    It is telling that Amanda fired Mr. Cavness, who had questions and

suggestions of his own in furtherance of Edell’s interests regarding the sale of the

ranch, and who also wrote a non-representation letter to advise Johnny and

Amanda that he represented Edell’s interests, not theirs. 50 It is also telling that, in

the next transaction spearheaded by Johnny and Amanda – the Modification – they

used an attorney who was happy to plug in the information that they fed him, and

who, despite having a unique file number for Edell he had used in previous legal

work for her, instead used a file number associated with Johnny and Amanda and

named them as the client. 51 Mr. Martin wrote to Johnny and Amanda that “we

have inserted the balance of $227,528.00, reduced the interest rate to zero, and

made the monthly payment $1,200 per Amanda’s phone call of the 28th.” 52

      29.    Mr. Martin clearly and repeatedly identified Johnny and Amanda as

the ‘client’ in the physical file he created at the time in 2009 and that he was paid

for his work on the Modification by Amanda Wade, not Edell Wade. 53 Michael

Martin testified he had considered the Modification a “joint project.” 54                He

acknowledged that communications on the Modification were sent directly to

50
      CR:           363 [Tab Q, Pat Cavness File].
51
      SUPP RR:      Vol. 2 of 6 at 116:2-19 [Tab K, Martin Trial Testimony].
52
      RR:           Vol. 3 of 4 at 24 [Tab J, Martin & Millican File].
53
      RR:           Vol. 3 of 4 at 14, 15, 19, 21 [Tab J, Martin & Millican File]; and
      SUPP. RR:     Vol. 2 of 6 at 116:17 – 118:1 [Tab K, Martin Trial Testimony].
54
      SUPP RR:      Vol. 2 of 6 at 87:21-24 [Tab K, Martin Trial Testimony].

                                             20
Amanda and that Amanda paid for the work.55                Mr. Martin could not have

provided Edell with independent counsel because he knew nothing about the

principal reduction: “I may not have remembered at that time that they even talked

about reducing the balance. And to this day I don’t know if or how much they

reduced it” and that he thought he was reducing the interest to zero. 56 “I really

didn’t know what was going on. It changed two or three times. I really didn’t

know and hoped that with the accountant they would work it out to where

everybody was happy,” and “I didn’t imagine they wanted my input.” 57 Mr.

Martin could not have provided any meaningful independent counsel because he

was not cognizant of the fact that a principal reduction was even occurring as part

of the Modification, much less in what amount.

C.    The Evidence does Not Support that Edell Voluntarily, and with Full
      Disclosure, Chose to Sell the Ranch and Chose to Reduce the Principal
      in Connection with the Modification
      30.   Appellees have not produced any evidence that Edell wanted the

Modification, in particular the reduction in principal, other than self-serving

testimony from Johnny and Amanda. There is absolutely no evidence that Edell

Wade was aware at all of the principal reduction of around $40,000. The reliable

evidence supports the other view: the Modification that Edell signed stated on its

55
      SUPP RR:     Vol. 2 of 6 at 116:20 – 118:1 [Tab K, Martin Trial Testimony].
56
      SUPP RR:     Vol. 2 of 6 at 121:13 – 122:8 [Tab K, Martin Trial Testimony].
57
      SUPP RR:     Vol. 2 of 6 at 88:12-25 [Tab K, Martin Trial Testimony].

                                           21
face in bold lettering that its “SOLE PURPOSE” was elimination of interest.58

Mr. Martin’s file entry on the matter stated that the note was to be modified for

either an elimination of interest or reduction of the principal. 59

      31.    Johnny’s self-serving testimony that he took his mother to Mr.

Martin’s office and left the room while they discussed it is (a) not confirmed by

Mr. Martin and (b) was never mentioned by Johnny or anyone else in prior

deposition testimony or other discovery conducted during the more than three

years leading up to trial.

      32.    Everyone involved in the Modification around the time it was

executed has testified ignorance as to the principal balance at the time. Johnny did

not know what the unpaid balance was at the time. 60 Amanda Wade testified that

she did not know where the modified principal amount came from or how it was

arrived at. 61 The testimony of Mr. Martin and Ms. Graham (Edell’s longtime

accountant) – the individuals who were in a position to ostensibly implement

Edell’s wishes – confirmed that neither of them were aware of a principal

reduction and they did not speak with Edell about a principal reduction.62 There is

58
      RR:           Vol. 3 of 4 at 39-46 [Tab L, Modification Agreement].
59
      RR:           Vol. 3 of 4 at 15 [Tab J, Martin & Millican File].
60
      SUPP RR:      Vol. 5 of 6 at 16:14 – 16 [Tab T, Johnny Wade Trial Testimony].
61
      SUPP RR:      Vol. 3 of 6 at 130:3-4, 134 – 135 [Tab O, Amanda Wade Trial
                    Testimony].
62
      SUPP RR:      Vol. 2 of 6 at 88:12-25, 121:13 – 122:8 [Tab K, Martin Trial Testimony];
      SUPP RR:      Vol. 3 of 6 at 8:6 – 9:20, 12:15 – 16, 12:2-3, 16:21 – 19:5 [Tab M, Lori
                    Graham Trial Testimony]; and

                                            22
no viable way to look at the evidence and find that Edell Wade was provided with

full disclosure on the terms of the Modification when the principal reduction is not

stated on the document and the people involved did not even know what the actual

balance on the Note was, much less how much was reduced.

      33.    The Appellees assert that Edell was just like the decedent in Vogt v.

Warnock, who “had made the gifts (i) voluntarily, (ii) while competent and (iii)

after talking to an attorney.” See page 44 of Appellees’ Brief. In the instant case

there exists substantiated evidence only for competency, but as previously

outlined, not for the premise that the transactions were made by Edell voluntarily

and after talking to an attorney. While no one has disputed that Edell was of sound

mind, that does not mean she was not unduly influenced to enter into the

Modification, nor does it mean that Johnny and Amanda fulfilled their fiduciary

obligations of ensuring fairness and full disclosure in connection thereto.

      34.    Edell was increasingly isolated from the world after Johnny and

Amanda moved onto the ranch. Amanda testified that the gate to the ranch was

locked after 2005 and that no key was given to Bud or to his wife Gwen. 63 She

also testified that she had told the family that Edell could no longer host her

birthday parties at the ranch, despite the fact that family gatherings had

traditionally taken place at the ranch and despite the life estate they had ostensibly

      RR:          Vol. 3 of 4 at 3 [Tab N, Amanda Wade Note to Lori Graham].
63
      SUPP. RR:    Vol. 3 of 6 at 116 - 121 [Tab O, Amanda Wade Trial Testimony].

                                          23
granted to Edell. 64 There was no evidence that Edell consulted with Lori Graham,

Michael Martin, or anyone else regarding the details of the Modification. As in

Jordan v. Lyles, “the record contains no evidence that [] anyone [] specifically

discussed” the transaction “and informed [her] of all material facts relating”

thereto. 455 S.W.3d 785, 795 (Tex.App.—Tyler 2015 n.p.h.).

      35.    Amanda herself testified that the Modification did not benefit Edell

financially, that it benefited herself and Johnny, and that she never thought about

its fairness. 65 Such testimony confirms that she did not fulfill her obligation to

ensure that the Modification was “fair and equitable” to Edell.

      36.    The evidence simply does not establish that Johnny and Amanda

complied with their obligations to (a) ensure the Modification was fair and

equitable to Edell, (b) make reasonable use of the confidence Edell placed in them,

(c) act in utmost good faith and exercise the most scrupulous honesty towards

Edell, and (d) place Edell’s interests above their own, not use their position to their

advantage or to gain any benefit at Edell’s expense, and not place themselves in a

position where their self-interest might conflict with their obligations as

64
      SUPP. RR:     Vol. 3 of 6 at 121 – 123 [Tab O, Amanda Wade Trial Testimony].
65
      SUPP RR:      Vol. 3 of 6 at 129 – 131, 135, 138 - 139 [Tab O, Amanda Wade Trial
                    Testimony].

                                           24
fiduciaries. 66 They failed to produce evidence showing they fulfilled their duties;

and in fact the record establishes that they did not.

                                       PRAYER
      WHEREFORE, PREMISES CONSIDERED, James E. Wade prays that this

Court overturn the Summary Judgment Order and the Final Judgment in this case

and remand the case for a new trial. Appellant further prays for such other relief,

whether at law or in equity to which this Court deems he is justly entitled.

                                         Respectfully submitted,

                                         RICHIE & GUERINGER, P.C.

                                         BY: /s/ Sheldon E. Richie
                                            SHELDON E. RICHIE
                                            State Bar of Texas No. 16877000
                                            Email: srichie@rg-austin.com
                                            EMILY J. SEIKEL
                                            State Bar of Texas No. 24072331
                                            Email: eseikel@rg-austin.com
                                            100 Congress Avenue, Suite 1750
                                            Austin, Texas 78701
                                            512-236-9220 telephone
                                            512-236-9230 facsimile

                                              ATTORNEYS FOR APPELLANT
                                              JAMES E. WADE

66
      CR:    1539-1558 [Tab Y, Charge of the Court and Verdict].

                                           25
                   CERTIFICATE OF COMPLIANCE
       Pursuant to Texas Rules of Appellate Procedure 9.4, the undersigned
certifies Appellant’s Reply Brief complies with 9.4.

     1.    Exclusive of the exempted portions in Texas Rules of Appellate
           Procedure 9.4(i)(1), Appellant’s Reply Brief contains 5,795 words.
     2.    Appellant’s Reply Brief has been prepared in proportionally spaced
           typeface using Microsoft Word Version 2007 in Times New Roman
           14 point.

     3.    The undersigned has provided an electronic version of Appellant’s
           Reply Brief.

     4.    The undersigned understands a material misrepresentation in
           completing this certificate, or circumvention of Texas Rules of
           Appellate Procedure 9.4, may result in the Court’s striking
           Appellant’s Reply Brief.

                                                /s/ Emily J. Seikel
                                          Sheldon E. Richie/Emily J. Seikel

                                     26
                        CERTIFICATE OF SERVICE
      I HEREBY CERTIFY that on the 26th day of August, 2015, a true and
correct copy of the foregoing was served as follows:

Counsel for Appellees

      For Johnny Wade and Amanda Wade Individually
            Kathryn E. Allen
            Graves, Dougherty, Hearon & Moody
            401 Congress Avenue, Suite 2200
            Austin, Texas 78701
            512-480-5651 Telephone
            512-480-5851 Facsimile
            kallen@gdhm.com Email

      For Amanda Wade as Independent Executor
           Claude E. Ducloux
           Hill, Ducloux, Carnes & De La Garza
           400 West 15th Street, Suite 808
           Austin, Texas 78701
           512-474-7054 Telephone
           512-474-5605 Facsimile
           cducloux@hdcdlaw.com Email

                                               /s/ Emily J. Seikel
                                         Sheldon E. Richie/Emily J. Seikel

                                    27
            NO. 03-15-00100-CV

        IN THE COURT OF APPEALS

FOR THE THIRD JUDICIAL DISTRICT OF TEXAS

               AT AUSTIN

IN RE THE ESTATE OF EDELL WADE, DECEASED.

             JAMES E. WADE,
                Appellant.

                APPENDIX

                    28
                        TABLE OF CONTENTS 67
                OF RECORD EXHIBITS ACCOMPANYING
           APPELLANT’S BRIEF IN REPLY TO APPELLEES’ BRIEF

     NO.          TITLE OF DOCUMENT
     Tab J.       Martin & Millican File 68
     Tab K.       Michael Martin Trial Testimony 69
     Tab L.       Modification Agreement 70
     Tab M.       Lori Graham Trial Testimony 71
     Tab N.       Amanda Wade Note to Lori Graham72
     Tab O.       Amanda Wade Trial Testimony 73
     Tab P.       Amanda Wade Deposition Testimony (Excerpts) 74
     Tab Q.       Pat Cavness File75
     Tab R.       Statement by Judge Savage During Trial 76
     Tab S.       Nancy Burns Trial Testimony 77
     Tab T.       Johnny Wade Trial Testimony 78
     Tab U.       Bud Wade Trial Testimony 79
     Tab V.       Promissory Note 80
     Tab W.       Deed of Trust81

67
       The Appendix to Appellant’s Brief is hereby incorporated herein by reference and, for
       ease of reading, the instant Appendix begins with the next available Tab designation.
68
       RR:            Vol. 3 of 4 at 14-86
69
       SUPP. RR: Vol. 2 of 6 at 78-131
70
       RR:            Vol. 3 of 4 at 39-46
71
       SUPP. RR: Vol. 3 of 6 at 7-21
72
       RR:            Vol. 3 of 4 at 3
73
       SUPP. RR: Vol. 3 of 6 at 22-230
74
       CR:            407
75
       CR:            347-387
76
       SUPP. RR: Vol. 3 of 6 at 45
77
       SUPP. RR: Vol. 2 of 6 at 7-77
78
       SUPP. RR: Vol. 5 of 6 at 7-74.
79
       SUPP. RR: Vol. 4 of 6 at 30-65.
80
       RR:            Vol. 3 of 4 at 58-66
81
       CR:            86-100

                                              29
     NO.      TITLE OF DOCUMENT
     Tab X.   Statements by Judge Savage During Summary Judgment Hearing 82
     Tab Y.   Charge of the Court and Verdict 83

82
       RR:       Vol. 2 of 4
83
       CR:       1539-1558

                                      30
                             NO. 03-15-00100-CV

                        IN THE COURT OF APPEALS

            FOR THE THIRD JUDICIAL DISTRICT OF TEXAS

                                  AT AUSTIN

           IN RE THE ESTATE OF EDELL WADE, DECEASED.

                              JAMES E. WADE,
                                 Appellant.

                               VERIFICATION

    Before me, the undersigned notary, on this day personally appeared Emily J.
Seikel, the affiant, a person whose identity is known to me. After I administered
an oath to affiant, affiant testified:

1.    "My name is Emily J. Seikel. I am over 18 years of age, of sound mind, and
      capable of making this affidavit. I am an attorney for Appellant James E.
      Wade. The facts in this affidavit are within my personal knowledge and are
      true and correct.

2.    "I certify and verify that I have reviewed the Appellant's Reply Brief and
      concluded that every factual statement in the Reply Brief is supported by
      competent evidence included in the appendix or record, and that the items
      contained in the Appendix are accurate copies of documents from the Clerk
      and Reporter's Records that are material to the Appellant's Brief.

                                              ~/) ~)~.
                                     Emily J. SeikelJ

                                       31
STATE OF TEXAS                               §
                                             §
TRAVIS COUNTY                                §

      SUBSCRIBED AND SWORN TO before me on this the 26th day of August
2015, to certify which witness my hand and seal of office .

    . .~~"j!i:~1:f,~~;··..   M L STEVENSON       Notary Public In and For State of Texas
    {:!
    'ui.'
                    0

                     \~ i
                       NOTARY PUBLIC
                        state of Texas
                     •.,,
    \ 1 ;;;.....~+Y
      "• •••iaf...." Comm. Exp. 06-20-2016

                                                   32
                              03-15-00100-CV

 1                          REPORTER'S RECORD

 2                         VOLUME 3 OF 4 VOLUMES
                                                                  FILED IN
                                                           3rd COURT OF APPEALS
 3        CAUSE NO:      P9127/COURT OF APPEALS   NO: 03-15-00100-CV
                                                                AUSTIN, TEXAS
                                                           3/18/2015 10:35:27 AM
 4       IN THE MATTER OF                         IN THE COUNTY COURT
                                                               JEFFREY D. KYLE
                                                                    Clerk
 5       THE ESTATE OF                            AT LAW

 6       EDELL WADE                               BURNET COUNTY, TEXAS

 7

 8

 9

10

11                              EXHIBITS

12

13

14

15

16               On the 11th day of April, 2014, the foregoing

17      proceedings came on to be held in the above-titled and

18      numbered cause before the HONORABLE RANDY SAVAGE, Judge

19      presiding at Burnet, Burnet County, Texas.

20               Proceedings reported by computerized stenotype

21      machine.

22

23

24

25

                                                                           1

TAB J
RR VOL 3 OF 4 AT 14-86
Page 1 of 86
 1                                  EXHIBIT INDEX

 2      Plaintiff's Trial Exhibits:

 3      NUMBER           DESCRIPTION            OFFERED   RECEIVED   VOL

 4       7               Payments made          (trial not transcribed)

 5       9               Power of Attorney      (trial not transcribed)

 6       11              Modification Agreement (trial not transcribed)

 7       38              File from Michael Martin(trial not transcribed)

 8

 9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

                                                                           2

TAB J
RR VOL 3 OF 4 AT 14-86
Page 2 of 86
0
    TAB J
    RR VOL 3 OF 4 AT 14-86
    Page 14 of 86
                                                                                     WORK ORDER

                 ATTORNEY:          ~M                                                                                                 DATE:           4- I'I.- D'
                 Client:     :;;:t=:(,. u"" '1---~..t.r..&?.c.._-=«._,.('-",_"!!J!fE-,___ __
0                Address: _ _ _ _ _ _ _ .....•. _ __                            --- -- - -

                 Phone Numbers: Home _ _ _ _ _ _ BuslnoH: - - - - - - Other: _ __
                 File Name:
                 Fee Arrangement: - - - -
                 Date:
                 '-1-lt.-~_y_

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                                     - ·-    - - -·    --- ---------------

0
    TAB J
    RR VOL 3 OF 4 AT 14-86
    Page 15 of 86
  0                                                    0                                                                   0
                                                                                                                                    ...
                                                                                                                                f
                                                     MARTIN, MILLICAN, HENDERSON & SHRUM
                                                                  AITORNEYS AT LAW
                                                               512 EAST FOURTH STREET
                                                                LAMPASAS, TEXAS 76550
                                                                      512/556-6228

                         Re: 16,163/MMM/Wade                                                           Date: January 31, 2012

                         Enclosed is original Record of Examination on Written Questions on the Wade matter.

                                        MR EVAN STUBBS
                                        ATTORNEY AT LAW
                                        202 NORTH PORTER
                                        LAMPASAS TX 765650

TAB J
RR VOL 3 OF 4 AT 14-86
Page 16 of 86
                                                                                                                                                                                    0
P.
1     1   *     Conunica.tion Result Report ( Ja.n.25. 2012                                 1:59PM l          111   * *
                                                                                                                                 ~~   M.a.r t   1   t•   &   Mi I l i   ~.,,.

Da.:e/Time: Ja.n. 25.         2~12      1:59PM
F. I e                                                                                                                                                            Pase
 No. Mode                                Dest i na.t ion                                         pg (s)                         Resul:                            Not Sent
9615 Memory TX                           5568975 P. 4                  OK

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    TAB J
    RR VOL 3 OF 4 AT 14-86
    Page 17 of 86
          Stuhh"                               202 N. PORI ERST• • LAMPASAS, T EXAS 76550
        .1\\    (    )ill~._~ c·            PHONE:  (512) !55&8970 • FAX: (512) 55&897!5

0          I' I I . < .                                        www.stubbslawofllce.com

                January 17. 2012

                Mike Martin
                Attorney at Law
                512 E. Fourth Street
                Lampasas, Texas 76550

                VIA CERTIFIED MAIL RETURN RECEIPT REQUESTED
                70101870000175742990

                     Re: Estate of Edell Wade, Deceased; Cause No. P9127. in the CO\mty Court at
               Law ofBmnct County, Texas

               Dear Mike:

                       Enclosed you a Notice of Intention to Take Written Deposition directed to you.
               Please forward the answers back to my office after answering before a Notary Public.

                          If you have any questions, please let me know.

0              ES/jjb

               Encl:     1.        Notice oflntention to Take Written Deposition ofMichae1 Martin
               Cc:        Amanda Wade

0
    TAB J
    RR VOL 3 OF 4 AT 14-86
    Page 18 of 86
                                          MARTIN & MILLICAJ
                                               ATTORNEYS AT LAW
                                               512 E FOURTH STREET

0                                             LAMPASAS, TEXAS 76550
                                                   (!512) 556-6228
                                                 (512) 556-8621

                                                                             PAGENO 1
                                                                                June 15, 2009
                                                                      Account No. 16163-00
            MR. & MS. JOHNNY WADE
                  REDACTED
                               REDACTED
                 REDACTED      REDACTED

             RE: MODIFICATION OF NOTE

                                                                       HOURS
    04/16/2009        OFFICE CONFERENCE WITH CLIENT                      0.40            68.00
    04/30/2009        TELEPHONE CALL TO LORI GRAHAM                       0.03            5 .10
                      TELEPHONE CALL FROM CLIENT                          o.oe           10.20
    05/06/2009        TELEPHONE CALL TO LORI GRAHAM                       0.03            5 .10
    0511312009        TELEPHONE CALL TO LORI GRAHAM                       0.06          10.20
    05/14/2009        TELEPHONE CALL FROM AMANDA WADE                     0.03            5.10
    05/26/2009        TELEPHONE CALL FROM AMANDA WADE                     0.08          1020
                      PREPARED MODIFICATION AGREEMENT                                  125.00

0
    06/15/2009        PREPARED LEn"ER TO CLIENT; COPY TO HOLDER           0.12          20.40
                      FOR CURRENT SERVICES RENDERED
                                                                          --
                                                                          0.79
                                                                                       -  -
                                                                                       259.30
    06/0212009        PAID TO BURNET CO. CLERK CK #18984                                40.00
                      TOTAL EXPENSES                                                    40.00
                      TOTAL CURRENT WORK                                               299.30

                      BALANCE DUE                                                     $299.30

                      Please Remit                                                    $299.30

                      THANK YOU

0
      TAB J                                                                REDACTED
      RR VOL 3 OF 4 AT 14-86
      Page 19 of 86
 0                                                       0                                                                    0
                                                     )
                                                                 MARTIN & MILLICAN
                                                                  ATTORNEYS AT LAW
                                                               512 EAST FOURTH STREET
                                                                LAMPASAS, TEXAS 76550
                                                                      5121556-6228

                         Re: 16, 163/MMM/Wade                                                             Date: June 15, 2009

                         Enclosed is original recorded Modification Agreement for your files. A copy has been sent to Johnny and
                         Amanda Wade.

                                ...
                                MS EDELL WADE
                                REDACTED
                                     REDACTED
                                1-

TAB J                                                                                                                   REDACTED
RR VOL 3 OF 4 AT 14-86
Page 20 of 86
 0                                                          0                                                                       0

                                                                    MARTIN & MILLICAN
                                                                    ATIORNEYS AT LAW
                                                                 512 EAST FOURTH STREET
                                                                  LAMPASAS, TEXAS 76550
                                                                       512/556-6228

                         Re: 16,163/MMMJWade                                                                   Date: June 15, 2009

                         Enclosed are copy of recorded Modification Agreement the original of which has been sent to Edell Wade
                         and your file regarding this matter which you left with us. Also enclosed is a bill for services. Thank you.

                                 ,...
                                 MR AND MRS JOHNNY WADE
                                        REDACTED REDACTED
                                REDACTED         REDACTED
                                                 REDACTED

                                 &..

TAB J
RR VOL 3 OF 4 AT 14-86                                                                                                            REDACTED
Page 21 of 86
                             BURNET COUNTY CLERK'S OFFICE

0                              220 SOUTH PIERCE STREET
                                    BURNET, TX 78611
                                      512-756-5406
    ISSUED TO: MARTIN & MILLICAN
    RECEIPT#: 109611                              DATE: 06/0912009 10:01:48 AM
    DEPARTMENT:OPR                              WORK STATION: KGRIMES

                      DOCUMENT #          PGS                    FEE
                      2009051.93          7
                      MOD                                          40.00
                                                    rm:mrrm
                      Total Amount Due                             40.00

                      CHECK 1.8984                                 40.00
                      ====-=====-=======--=====-==-~=---==-==
                      Total Amount Paid                            40.00

0

                                        THANK YOU
                                      JANET PARKER
                                     COUNTY CLERK
                                     Deputy: KGRIMES

0
    TAB J
    RR VOL 3 OF 4 AT 14-86
    Page 22 of 86
 0                                                     0                                                                     0

                                                                MARTIN & MILLICAN
                                                                  ATTORNEYS AT LAW
                                                                  512 E. FOURTH ST.
                                                                LAMPASAS, TEXAS 76550

                                                                     5121556-6228

                         Re: FN: 16,163- MODIFICATION AGREEMENT/EDELL WADE/JOHNNY & AMANDA WADE                          June 2, 2009

                         Please record the above document and return to this office. We are enclosing our check #18984
                         in the amount of $40.00.

                           ,..
                               Ms. Janet F. Parker
                           . . Burnet Co. Clerk
                               220 S. Pierce St.
                               Burnet, Tx 78611

TAB J
RR VOL 3 OF 4 AT 14-86
Page 23 of 86
0                                          MARTIN & MILLICAN
                                                ATlORNEYS AT lAW
                                              012 eAIS'I FOUimi8TREET
                                               ~ _TeXA&7MI50

                                                                             .                "'. . . .
          MICHAELM. MARTIN                                                            1ELS12~28
          PATMiwcAN                                                                    FAXS12-e5&8821
                                                                              ""!"'~!"--··

          May26,2009

          Mr. Johnny Wade
          REDACTED
           REDACTED
             REDACTED
          Re:     Modification Agreement
                  Ale No. 16,163

          Dear Johnny:
          Enclosed yQU wm find the .Modlfk:ation Agreement on the nota to·your mother in which we
          have Inserted the balance of$227 ,528.00, reduced the intereet rate to zero, and made the
          monthly payment $1,200 per Amanda'a phone call of the 26". If this ia satiafactory, each
          of you should sign as yoUr names are typed_, have notarized. and return-for recording with
          the Burnet County Clerk. If you would like us to notarize, each/all ~fyou can come by with
          the Modification and sign hera. Also enclosed ia an amortization achedult!J on the mocftfled
          note. If you have any additional changes, please let me know. Thank you.

0         Sincerely yours,

          Michael M. Martin

          MMM:bp

          Enclosures

0
    TAB J
    RR VOL 3 OF 4 AT 14-86                                                                       REDACTED
    Page 24 of 86
    •NO':'E FROM
     JOHNNY WADE AND            A~NDA       WADE

0 •
     T0 . EDELL WADE

    PREPARED B'i:
    ~~RTIN & MILLICAN
    ATTORNEYS AT LAW
    512 EAST FOURTH ST.
    LAMPASAS, TX 76550

       Amount                 Loan                 Loan            Firat Pmt
       Borrowed               Date                 Rate%           Date                                         nt               Polnta
             227,5211   ool           5113120091     o.ooool              81112ooel                                  1.20o.ool            ,.   '·· I
                                              Interest                        Prine pal            Principal         Interest
             It               Date         This Period                      This Period          New Balance          To Date
              1     6/ 1/09                               o.oo                   1,200.00         226,328.00                0.00
              2     7/ 1/09                               0.00                   1,200.00         225,128.00                0.00
              3     8/ 1/09                               0.00                   1,200.00         223,928.00                0.00
              4     9/ 1/09                               o.oo                   1,200.00         222,728.00                0.00
              5    10/ 1/09                               o.oc                   1,200.00         221,528.00                0.00
              6    11/ 1/09                               0.00                   1,200.00         220,328.00                0.00
              7    12/ 1/09                               0.00                   1,200.00         219,128.00                0.00
         Subtotal.:                                0.00                   8,400.00            219,128.00             0.00
              e     1/ 1/10                               0.00                   1,200.00        217,928.00                 o.oo
              9     21 1/lO                               o.oo                   1,200.00        216,728.00                 0.00
             10     3/ 1/::.0                             o.oc                   1,200.00        215,528.00                 0.00
             11     4/ 1/10                               0.00                   1,200 . 00      214,328.00                 0 . 00
             12     5/ 1/10                               0.00                   1,200.00        213,128.00                 0.00
             13     6/ 1/10                               0.00                   1,200.00        211,928.00                 0.00
             14     7/ 1/10                               0.00                   1,200.00        210,728.00                 0.00
             15     8/ 1/10                               o.oc                   1,200.00        209,528.00                 0.00
             16     9/ 1/10                               o.oc                   1,200.00        208,328.00                 0.00
             17    10/ 1/10                               0.00                   1,200.00        207,128.00                 o.oc
             18    11/ 1/10                               0.00                   1,200.00        205,928.00                 o.oc
             19    12/ 1/10                               o.oo                   1,200.00        204,728.00                 o.oc
         --------------------------------------------------------------------------------
0
         Subtotal:            o.oo       14,400.00      204,728.00            0.00
             20         1/    1/11                        0.00                   1,200.00        203,528.00                0.00
             21         2/    1/11                        0.00                   1,200.00        202,328 . 00              0.00
             22         3/    1/11                        0.00                   1,200.00        201,128.00                0.00
             23         4/    1/11                        o.oo                   1,200.00        199,928.00                0.00
             24         5/    ) /11                       0.00                   1,200.00        198,728.00                0.00
             25         6/    1/11                        0.00                   1,200 . 00      197,528.00                o.oo
             26     7/        1/11                        0.00                   1,200.00        196,328.00                0.00
             27     8/        1/11                        0.00                   1,200.00        195,128.00                0.00
             28     9/        1/11                        o.oo                   1,200 . 00      193,928.00                0.00
             29    10/        1/11                        0.00                   1,200 . 00      192,728.00                o.oo
             30    11/        1/11                        o.oo                   1,200.00        191,528.00                0.00
             31    12/        1/11                        0.00                   1,200.00        190,328.00                0.00
         --------------------------------------------------------------------------------
         SubLoLa1:            0.00       14,400.00      190,328.00            0.00
             32         1/ 1/12                           0.00                   1,200.00        189,128.00                0.00
             33         2./ 1/12                          0 . 00                 1,;wo . oo      187,928.00                0.00
             34         3/ 1/12                           0.00                   1,200.00        186,728.00                0.00
             35         4/ 1/12                           0.00                   1,200.00        185,528.00                0.00
             36         5/ 1/12                           0.00                   1,200.00        184,328.00                0.00
             37         6/ 1/12                           0.00                   1,200.00        183,128.00                0.00

0
        TAB J
        RR VOL 3 OF 4 AT 14-86
        Page 25 of 86
                                Intel. ~r::     Principal     Princi~.      Interest
        u           Date     This Period      This Period   New Balance      To Date
        38     7/   1/12             o.oo       1,200.00    :!.81,928.00       o.oo
0       39
        40
        4.1
        42
               8/
               9/
              10/
              11/
                    1/12
                    1/12
                    1/12
                    1/12
                                     0.00
                                     0.00
                                     0.00
                                     0.00
                                                1,200.00
                                                1,200.00
                                                1,200.00
                                                1,200.00
                                                            180,728.00
                                                            179,528.00
                                                            178,328.00
                                                            177,128.00
                                                                               0.00
                                                                               0.00
                                                                               0.00
                                                                               0.00
        43    12/   1/12             0.00       1,200.00    175,928.00         0.00
     --------------------------------------------------------------------------------
     Subtotal:            o.oo       14,400.00      175,928.00            0.00
        44     1/   1/13             0.00       1,200.00    1.74,7::!8.00      0.00
        45     2/   1/13             0.00       1,200.00    173,528.00         0.00
        46     3/   1/13             0.00       1,200.00    172,328.00         0.00
        47     4/   1/13             o.oo       1,200.00    171,128.00         0.00
        '18    5/   1/13             o.oo       1,200.00    169,928.00         0.00
        49     6/   1/13             0.00       1,200.00    168,728.00         o.oo
        50     7/   1/13             0.00       1,200.00    167,528.00         0.00
        51     6/   1/13             0.00       1,200.00    166,328.00         0.00
        52     9/   1/13             0.00       1,200.00    165,128.00         0.00
        53    10/   1/13             0.00       1,200.00    163,928.00         0.00
        54    11/   1/13             0.00       ],200.00    162,728.00         0.00
        55    12/   1/13             0.00       1,200.00    161,528.00         0.00
     --------------------------------------------------------------------------------
     Subtotal:            0.00       14,400.00      161,528.00            o.oo
        56     1/ 1/14               0.00       1,200.00    160,328.00         0.00
        57     21 1/14               0.00       1,200.00    159,128.00         0.00
        58     3/ 1/14               0.00       1,200.00    157,928.00         o.oo
        59     4/ 1/14               o.oo       1,200.00    156,728.00         o.oo
        60     5/ 1/14               0.00       1,200.00    155,528.00         0.00
        61     6/ 1/14               0.00       1,200.00    154,328.00         0.00
        62     7/ 1/14               0.00       1,200.00    153,128.00         0.00
        63     8/ 1/14               0.00       1,200.00    151,928.00         0.00
        64     9/ 1/14               0.00       1,200.00    150,728.00         0.00
        65    10/ 1/H                0.00       1,200.00    149,528.00         0.00
        66    11/ 1/14               0.00       1,200.00    148,328.00         0.00
        67    12/ 1/14               0.00       1,200.00    147,128.00         0.00
     --------------------------------------------------------------------------------
     Subtotal:            0.00       14,400.00      147,128.00            o.oo
        68     1/ 1/15               c.oo       1,200.00    145,928.00         0.00

0       69
        70
        71
        72
               21 1/15
               3/ 1/15
               4/ 1/1!)
               5/ 1/15
                                     0.00
                                     c.oo
                                     c.oo
                                     c.oo
                                                1,200.00
                                                1,200.00
                                                1,200.00
                                                1,200.00
                                                            144,728.00
                                                            143,528.00
                                                            142,328.00
                                                            141,128.00
                                                                               0.00
                                                                               0.00
                                                                               0.00
                                                                               o.oo
        73     6/ 1/15               c.oo       1,200.00    139, 928.00        0.00
        74     7/ 1/15               o.oo       1,200.00    138,728.00         0.00
        75     8/ 1/15               o.oo       1,200.00    137,528.00         0.00
        76     9/ 1/15               0.00       1,200.00    136,328.00         o.oo
        77    lC/ 1/15               0.00       1,200.00    135,128.00         0.00
        78    11/ 1/15               0.00       1,200.00    133,928.00         o.oo
        79    12/ 1/15               0.00       1,200.00    132,728.00         0.00
     --------------------------------------------------------------------------------
     SubtotAl:            o.nn       14,400.00      132,728.00            0.00
        80     1/   1n6              0.00       1,200.00    131,528.00         0.00
        81     21   1/16             o.oo       1,200.00    130,328.00         0.00
        92     3/   1/16             0.00       1,200.00    129,128.00         0.00
        83     4/   1/16             0.00       1,200.00    127,928.00         o.oo
        84     5/   1/16             0.00       1,200.00    126,728.00         0.00
        85     6/   1/16             0.00       1,200.00    125,528.00         0.00
        96     7/   1/16             0.00       1,200.00    124,328.00         0.00
        97     8/   1/16             0.00       1,200.00    123,128.00         0.00
        89     9/   1/16             0.00       1,200.00    121,928.00         0.00

0
    TAB J
    RR VOL 3 OF 4 AT 14-86
    Page 26 of 86
                                 Intel. Jt     E>rincipal      Princi1---   Interest
        .llfl         Date    This Period    This Period     New Balance     To Date

        89      10/ l/16             0.00       1,200.00      120,728.00       o.oo
0       90
        91

     Subtotal:
                11/ 1/16
                12/ 1/16

                          0.00
                                     0.00
                                     0.00
                                     14,400.00
                                                1,200.00
                                                1,200.00

                                                    118,328.00
                                                              119,528.00
                                                              118,328.00
                                                                          o.oo
                                                                               0.00
                                                                               0.00
     --------------------------------------------------------------------------------
       92        1/   1/17           0.00       1,200.00     117,128.00        0.00
       93        2/   1/17           0.00       1,200.00     115,928.00        0.00
       94        3/   1/17           0.00       1,200.00     114,728.00        0.00
       95        4/   1/17           0.00       1,200.00     113,528.00        0.00
       96        5/   1/17           0.00       1,200.00     112,328.00        0.00
       97        6/   1/17           0.00       1,200.00     111,128.00        0.00
       98        7/   1/17           0.00       1,200.00     109,928.00        0.00
       99        8/   1/17           0.00       1,200.00     108,728.00        0.00
      100        9/   1/17           o.oo       1,200.00     107,528.00        0.00
      101       10/   1/17           0.00       1,200.00     106,328.00        0.00
      102       11/   1/17           0.00       1,200.00     105,128.00        0.00
      103       12/   1/17           0.00       1,200.00     103,928.00        o.oo
     --------------------------------------------------------------------------------
     Subtotal:            0.00       14,400.00      103,928.00            o.oo
      104        1/   1/18           0.00       1,200.00     102,728.00        0.00
      10!:1      21   1/18           o.oo       1,200.00     101,528.00        0.00
      106        3/   1/18           o.oo       1,200.00     100,328.00        0.00
      107        4/   1/18           0.00       1,200.00      99,128.00        0.00
      108        5/   1/18           0.00       1,200.00      97,928.00        0.00
      109        6/   1/18           0.00       1,200.00      96,728.00        0.00
      110        7/   1/18           o.oo       1,200.00      95,528.00        o.oo
      111        8/   1/18           o.oo       1,200.00      94,328.00        o.co
      112        9/   1/18           0.00       1,200.00      93,128.00        0.00
      113       10/   1/18           0.00       1,200.00      91,928.00        0.00
      114       11/   1/18           0.00       1,200.00      90,728.00        0.00
      115       12/   1/18           0.00       1,200.00      89,528.00        0.00
     --------------------------------------------------------------------------------
     Subtotal:            0.00       14,400.00       89,528.00            0.00

      116        1/   1/19           0.00       1,200.00      88,328.00        o.co
      117        2/   1/l!)          0.00       1,200.00      87,128.00        0.00
      118        3/   1/19           o.co       1,200.00      85,928.00        0.00
      119        4/   1/19           0.00       1,200.00      84,728.00        0.00

0     120
      121
      ], ?.2
      123
                 5/
                 6/
                 7/
                 8/
                      1/19
                      1/19
                      1/19
                      1/19
                                     o.co
                                     0.00
                                     0.00
                                     0.00
                                                1,200.00
                                                1,200.00
                                                1,:?.00.00
                                                1,200.00
                                                              83,528.00
                                                              82,328.00
                                                              81,128.00
                                                              79,928.00
                                                                               0.00
                                                                               0.00
                                                                               0.00
                                                                               0.00
      124        9/   1/19           o.co       1,200.00      78,728.00        0.00
      125       10/   1/19           0.00       1,200.00      77,528.00        0.00
      126       11/   1/19           o.co       1,200.00      76,328.00        0.00
      127       12/   1/19           0.00       1,200.00      75,128.00        o.oo
     --------------------------------------------------------------------------------
     Subtotal:            0.00       14,400.00       75,128.00            o.oo
      128        1/ 1/20             0.00       1,200.00      73,928.00        0.00
      129        2/ 1/20             o.oo       1,200.00      72,728.00        0.00
      130        3/ 1/20             0.00       1,200.00      71,528.00        0.00
      131        4/ 1/20             0.00       1,200.00      70,328.00        0.00
      132        5/ 1/20             0.00       1,200.00      69,128.00        0.00
      133        6/ 1/20             0.00       1,200.00      67,928.00        0.00
      134        7/ 1/20             o.oo       1,200.00      66,728.00        0.00
      135        8/ 1/20             0.00       1,200.00      65,528.00        0.00
      136        9/ 1/20             0.00       1,200.00      6(,328.00        0.00
      137       10/ 1/20             0.00       1,200.00      63,128.00        0.00
      138       11/ 1/20             0.00       1,200.00      61,928.00        0.00
      139       12/ l/20             0.00       1,200.00      60,728.00        o.oo

0
    TAB J
    RR VOL 3 OF 4 AT 14-86
    Page 27 of 86
                                         Inte.  t:     Principal       PrinciJ,.   Interest
                 u             Date   This Period    This Period     New Balance    To Date
        ..
    .         --------------------------------------------------------------------------------
0             Subtotal:
               HO
               H1
                         1/
                         2/
                               1/21
                               1/21
                                   0.00       14,400.00

                                             0.00
                                             0.00
                                                              60,728.00

                                                       1,200.00
                                                       1,200.00
                                                                      59,528.00
                                                                      58,328.00
                                                                                   0.00
                                                                                       0.00
                                                                                       0.00
               H2        3/    1/21          o.oo      1,200.00       57,128.00        0.00
               143       4/    1/21          0.00      1,200.00       55,928.00        0.00
               H4        5/    1/21          0.00      1,200.00       54,728.00        0.00
               H5        6/    1/21          0.00      1,200.00       53,528.00        0.00
               H6        7/    1/21          0.00      1,200.00       52,328.00        o.oo
               147       8/    1/21          o.oo      1,200.00       51,128.00        0.00
               148       9/    1/21          0.00      1,200.00       49,928.00        o.oo
               149      10/    1/21          0.00      1,2CO.OO       48,728.00        0.00
               150      11/    1/21          0.00      1,200.00       47,528.00        0.00
               15:      12/    1/21          0.00      1,200.00       46,328.00        0.00
              --------------------------------------------------------------------------------
              Subtotal:            0.00       14,400.00       46,328.00            0.00

               152       1/    1/22          0.00      1,200.00       45,128.00        0.00
               153       21    1/22          0.00      1,200.00       43,928.00        0.00
               154       3/    1/22          0.00      1,200.00       42,728.00        0.00
               155       4/    1/22          0.00      1,200.00       41,528.00        0.00
               156       5/    1/22          0.00      1,200.00       40,328.00        o.oo
               157       6/    1/22          0.00      1,200.00       39,129.00        0.00
               158       7/    1/22          0.00      1,200.00       37,928.00        0.00
               159       8/    1/22          0.00      1,200.00       36,728.00        0.00
               160       9/    1/22          o.oo      1,200.00       35,528.00        0.00
               161      10/    1/22          0.00      ::..,200.00    34,329.00        0.00
               162      11/    1/22          0.00      :,200.00       33,129.00        0.00
               163      12/    1/22          0.00      1,200.00       31,928.00        0.00
              --------------------------------------------------------------------------------
              Subtotal.:           0.00       14,400.00       31,928.00            0.00

               164       1/    1/23          o.oo      1,200.00       30,729.00        0.00
               165       2/    1/23          0.00      1,200.00       29,528.00        0.00
               166       3/    1/23          0.00      1,200.00       28,328.00        o.oo
               167       4/    1/23          o.oo      1,200.00       27,128.00        0.00
               168       5/    l/23          o.oo      1,200.00       25,929.00        0.00
               169       6/    1/23          0.00      1,200.00       24,728.00        o.oo
               170       7/    1/23          0.00      1,200.00       23,528.00        0.00

0              171
               172
               173
               174
                         6/
                         9/
                        10/
                        11/
                               1/23
                               1/23
                               1/23
                               11'3
                                             0.00
                                             0.00
                                             0.00
                                             0.00
                                                       1,200.00
                                                       1,200.00
                                                       1,200.00
                                                       1,200.00
                                                                      22,328.00
                                                                      21,128.00
                                                                      19,928.00
                                                                      18,728.00
                                                                                       0.00
                                                                                       0.00
                                                                                       o.oo
                                                                                       0.00
               1'7!)    12/    1/23          0.00      1,200.00       17,528.00        o.oo
              --------------------------------------------------------------------------------
              Subtotal:            0.00       14,400.00       17,528.00            c.oo
               176       1/ 1/24             0.00      1,200.00       16,328.00        0.00
               177       ')/ 1/24            0.00      1,200.00       15,128.00        0.00
               l. "/8    3/    1/24          0.00      1,200.00       13,928.00        0.00
               179       IJ/   1/24          o.oo      1,200.00       12,728.00        0.00
               160       5/    1/24          0.00      1,200.00       11,528.00        o.oo
               161       6/    1/24          0.00      1,200.00       10,329.00        0.00
               182       7/    1/24          0.00      1,200.00        9,128.00        o.oo
               183       8/    1/24          0.00      1,200.00        7,928.00        o.oo
               18<       S/    1/24          0.00      1,200.00        6,728.00        0.00
               185      1C/    1/24          0.00      1,200.00        5,528.00        0.00
               186      11/    1/24          0.00      1,200.00        4,328.00        0.00
               187      12/    1/24          0.00      1,200.00        3,128.00        0.00
              --------------------------------------------------------------------------------
              Subtotal:            0.00       14,400.00        3,128.00            0.00

0
             TAB J
             RR VOL 3 OF 4 AT 14-86
             Page 28 of 86
                                       Inte:L -t            Principal         PrinciJ..--         Interest
               H        Date        This Period           This Period       New Balance            To Date
    ,i .

              188    1/ 1/25                  0.00           1,200.00          1,928.00                  0.00
              189    2/ 1/25                  0.00           1,200.00            728.00                  0.00
              190    31 1/25                  0.00             728.00              0.00                  0.00
            Subtotal:                  0.00           3,128.00                 o.oo               0.00
            Final payment amount:                728.00
            Tota.!. payments:        227,528.00      Principal:         227,528.00    Interest:             0.00

               SetLings:       360 Arr PrePd 1950 12 perYr

0

0
           TAB J
           RR VOL 3 OF 4 AT 14-86
           Page 29 of 86
 0                                                       0                                                                         0

                                                                   MARTIN & MILLICAN
                                                                    ATTORNEYS AT LAW
                                                                 512 EAST FOURTH STREET
                                                                  LAMPASAS, TEXAS 76550
                                                                       512/556-6228

                         Re: 16, 163/MMM/Wade                                                                  Date: May 13, 2009

                         Enclosed is draft of proposed Modification Agreement. Please look this over carefully and let me know if
                         changes are needed. If it is correct as it stands you may bring it by the office to sign and have notarized.

                                 ,...
                                 MR AND MRS JOHNNY WADE
                                REDACTED
                                        REDACTED

TAB J                                                                                                                   REDACTED
RR VOL 3 OF 4 AT 14-86
Page 30 of 86
         N0'11E: rROM
         ,JOHNNY "ADE          ~D       AMANDA WADE
         TO E:DE:LL WA:lE
                                                                                                                                                (
0    PR1'.PARED BY:
     MAR?IN & MILLICAN
         ATTOR:-.IEYS AT lAW
         0.12 k:AS'f        FO"JR'IH ST.                                                                                                            --..     I

         l.Af\IPASAS, TX "165':>0

    .,      Amount
            Bonowed
                   soo.oooool

                  lHI
                                      LOan
                                      Date

                                      Date
                                              21tl20081
                                                             .
                                                          Loan
                                                          ~

                                                            o.o:zaof

                                                     Interest
                                                  This Period
                                                                            Flliii Pint
                                                                            Dale
                                                                                   :vtl2008!
                                                                                               iDf
                                                                                               Pcia

                                                                                        Pr1.ncipa1
                                                                                      This Period
                                                                                                      :rnl
                                                                                                             :=;Pmi
                                                                                                                'lerwn•l   =
                                                                                                                   Pr1nc pal
                                                                                                                 New Bal.ance
                                                                                                                              t!J
                                                                                                                                    .,.._.
                                                                                                                                             1.1141. 1~

                                                                                                                                              nterest
                                                                                                                                              To Date
                                                                                                                                                          Palnt8   APR%

                     1         J/ 1/06                           8.33                     1,839.77                498,160.23                       8.33
                     2         41 1106                           8.30.                    1,839.80                496,320.43                      16.63
                        j      ':>I .l/06                        8.27                     1,839.83                494,480.60                      24.90
                     4         6i l/06                           8.24                     1,839.86                492,640.74                      33.14
                     5         ., '
                               • I    1/06                       8.21                     1,839.89                490,800.85                      41.35
                     6         81     1/06                       9.18                     1,839.92                .,85,960.93                     49.53
                     7         91     1106                       !!.15                    1,839.95                487,120.98                      57.68
                     8       : OI     1/06                       6 .12                    1,839.98                485,281.00                      65.80
                     9       :11      1/06                       8.09                     1,840.01                483,440.99                      "73.89
                  10          "?/     l/C6                       8.06                     1,840.04                481,600.95                      81.95
               Subt otal:                             81.9S                        18,399.05                  481,600.95                 61.9!)
                  ll           l/      1107                      IL03                     1,840.07                479,760.88                     89. qa
                  12           2/ 110 "1                         t!.OO                    1,840.10                477,920.78                     97.98
                  1.3          3 / lt0 7                         i . 97                   1,840.13                476,080.65                    10':> . 95
                  14           .j/     1/07                      7.93                     1,840.17                474,240.48                    1:3.88
                  15           5/ 1/07                           7.90                     1,840.20                472,400.28                    121.78
                  16           6/ 1/07                           7.87                     1,840.23                470,560.05                    129.65
                  17           7/ 1/07                           7.84                     1,840.26                468,719.79                    137.49
                  18           8/ 1/07                           7.81                     1,840.29                466,879.50                    145.30
                  19           9/ 1/07                           7.78                     1,840.32                465,039.18                    153.08
                  20         :ot 1/07                            7.75                     1,840.35                463,198.83                    160.83
                  :.n
0
                             ~ 1/ li07                           7.72                     1,840.38                461,358.45                    168.55
                  22         :21 l/0"1                           7.69                     1,840.41                459,518.04                    1"76.24
               --------------------------------------------------------------------------------
               Su:::-t:otal:       94.29       22,082.91      45!:t,!J18.04       116.24
                  2 .,         l/      1/08                      7.66                     1,840.44               . 457, 677. 60                 183.90
                  24           2/ l/08                           7.63                     1,840.47                 455,837.13                   191.53
                  25           3/ 1/08                           .,7.60                   1,840.50                 453,996.63                   199.13
                               4/ 1/0il                             .57                   1,840.53                                              206.70
                  7.6
                  ~7           5/ l/08                           ., .54                   1,840.56
                                                                                                                   452,156.10
                                                                                                                   450,315.54                   2:4.24
                  28           6/ l/08                           "! .51                   1,840.59                 448, •174. 95                221.75
                  29           7/ 1/08                           "7.47                    1,840.63                 446,634.32                   229.22
                  ~()          P.l 1/08                          ., .44                   1,840.66                 444,793.66                   236.66
                  .-
                  31
                  _,
                  13
                               'ill 1108
                             ~I)/
                             :11 1/08
                                       l/08
                                                                 7.41
                                                                 i • jf:l
                                                                 .,, .35
                                                                                          1,840.69
                                                                                          1,840.72
                                                                                          1,840.75
                                                                                                                  ·441. 952. 9":'
                                                                                                                   441,112.25
                                                                                                                   439,2"11.50
                                                                                                                                                ?44.07
                                                                                                                                                2!>1.45
                                                                                                                                                <1~8.80
                  ·1·1       i.21 1/08                           ·1. 32                   1,840.78                 437,430.72                   266.12
               --------------------------------------------------------------------------------
               S'.&01:.otal;       B9.e8       22,087.32      437,430.72          266.12
                  35          1/ 1/09                            7.29                     1,840.81                435,589.91                    273.41
                  36          21 lt09                            "'.26                    1,840.84                433,749.07                    280.67
                  37          3/ 1/09                            7.23                     1,840.87                431,908.20                    287.90

0
              TAB J
              RR VOL 3 OF 4 AT 14-86
              Page 31 of 86
       ..
       ;a
                 .,
                 4/ 1/09
                        Date
                                     lnter         396,925.84      419.44
       ~~      11/ 1/10                  6.62          1,841.48          395,084.36      426.06
       !:8     12/ 1/10                  6158          1,841.52          393,242.84      4 32.64
    --------------------------------------------------------------------------------
    Subtot:al:          91.05       22,096.15      393,242.84          432.64

       !:9      1/ 1/11                  ti.55         1, 841.55         391,401.29      439.19
       f(l      21 1/11                  6152          1,841.59          389,559 •.71    445.71
       1:-!      .j/ 1/ll                6.49          :,841.61          387,718.10      452.20
       62        II/ 1/ll                6. 46         1,841164          385,876.46      ol:::>l:l.6b
       63       51 1/11                  6.43          1,841167          384,034.79      4 65109
       64       6/ 1/11                  6. 40         :.,841.70         382,193.09      471.49
       65       7/ 1/11                  6.37          1,841173          380,351.36      47'7.86
       1>6      R/ 1/ll                  6134          1,841.76          378,509.60      484.20
       t· r     ~I 1/ll                  6.31          1,841179          376,667.81      490 I '51
       68      10/ 1/11                  6~28          :i.,841~82        3"'14,825.99    4!:J6~79
       6;)     11/ 1/11                  6.25          :.,841185         372,984.14      503.04
       "70     1:t:/ 1/11                6.22          ::.,841.89        371,142.26      509.26
    --------------------------------------------------------------------------------
0   Suht o ~ a 1 :

       '11
       ·;:!     ~I
                        76162
                 l / 1/12
                        1/12
                                    22,100.58
                                         6119
                                         6.16
                                                       :I 841 I 91
                                                       :, 841.94
                                                                     371,142~26
                                                                       509.26
                                                                        369,.300.3.5
                                                                        367,458.41
                                                                                         515.45
                                                                                         521.61
       'i3
       14
       "/!'I    ..
                3./ 1/12
                 4/ 1/12
                 _,, 1/12
                                         6.12
                                         6.09
                                         6.06
                                                       ::.,841.98
                                                       :,842101
                                                       :,842104
                                                                        365,616.43
                                                                        363,'174.42
                                                                        361,532.38
                                                                                         527.73
                                                                                         533.82
                                                                                         539.88
       ,...,
        /b       6/
                7/ 1/12
                         l/1;!           .;. 03
                                         6.00
                                                       :,842107
                                                       :,842.10
                                                                        360,090.31
                                                                        358,248.21
                                                                                         54!>.91
                                                                                         !:>~ : ~!H
       78       e1 1/12                  !:.197        :.,842~13        356,406.08       557. 8R
       ·;g      9/ 1/12                  5194          ::.,842~16       354,563.92       563.82
       EO      10/ 1/12                  5. 91         :,842~19         352,721.73       569.73
       F.~     11/ l/12                  5.88          :,842~22         350,879.51       575.61
       E2      1~1 1/12                  5.85          :,842125         349,037.26       5A1.46
    --------------------------------------------------------------------------------
    5'-JbtO!:.:ll!      72.20       22,105.00      349,037126          581.1)6

       c3       1/ 1/13                  5182           ,842129          347, 194.98     597.28
       E4       21 1/13                  5179           ,842131          345,352.67      f>93107
       F.~-     3./     1/13             ~} • ., 6      ,842.34          343,510.33      598.83
       Eb       4/      1/l:J            ':>. 13        ,842137          341,66'1.96     6:l4.5E
       E"l      5/      1/13             5169           ,842.41          33~,525.55      610.25
       68       6/      1/13             5166            ,842~44         337,983111      615.91

0
    TAB J
    RR VOL 3 OF 4 AT 14-86
    Page 32 of 86
                                       ·-·---- - ··· ·--··-··

                                   InterL __                 Principal             Principo-          Interest.
        tl             Date    I'his Period                This Period           New Bal.ance          To Date
        89       7/ 1/13                   5.63                 1,Q.42.47         336,140.64            621.54

0       90
        91
        92
       93
                 8/ 1/13
                 9/ 1/13
                 0/ 1/13
                 l l 1/lJ
                                           5.60
                                           5.57
                                           5.54
                                           ~. .   51
                                                                1,842.50
                                                                1,842.53
                                                                1,842.56
                                                                1,842.59
                                                                                  334,298.14
                                                                                  332,455.61
                                                                                  330,613.05
                                                                                  328,770.46
                                                                                                        627.14
                                                                                                        632.71
                                                                                                        638.25
                                                                                                        643.76
       9"        21 1/13                   ~-49                 1,842.62          326,927.84            649.24
    --------------------------------------------------------------------------------
    S:J.b::.ota.:.:     67.78       22,109.42      326,927.84          649.24
       95        1/ 1/14                   5.45                 1,842.65          325,085.19            654.69
       9E        21 1/14                   5.42                 1,842.68          323,242.51            6GO.ll
       97        3/ 1/14                   5.39                 1,842.71          32:.,399.80           665.50
       96        41 l/14                   5.36                 1,842.74          319,557.06            670.86
       99        51 1./H                   5.33                 1,842.77          317, 71."4 .29        676.19
      l.OO       6/ :/14                   5.30                 1,842.80          315,871.49            681.49
      101        11 :.114                  5.26                 1,842.84          314,028.65            686.75
      102        8/    :/14                5.23                 1,842.87          312,185.78            691.98
      103        9/    :/14                5.20                 1,842.90          310,342.88            697.18
      104       10/    : /14               !l.17                1,842.93          308,499.95            702.35
      105       111    :./14               !).14                1,842.96          306,656.99            707.49
      106       12/    :/111               5.11                 1,842.99          304,814.00            712.60
    --------------------------------------------------------------------------------
    Subtotal:           63.36       22,113.84      300,814.00          7:2.60

      107        1/ l/15                   5.08                 1,843.02          302,970.98            717.68
      lO!l       2/ l/15                   5 . 05               1,843.05          301,12'7.93           722.73
      .1C9       31 :t15                   •;.o2                1,843.08          299,284.85            727.75
      110        Ill l/1!:>                4.99                 1,843.11          297,441.74            732.74
      111        5/ !/15                   4.96                 1,843.14          295,598.60            73'7.70
      112        6/ l/15                   .; .93               1,843.17          293,755.43            742.63
      113        7/ 1/15                   4. 90                1,943.20          :<91,912.23           7iJ7.53
      114        81 1/15                   4.a7                 1,843.23          290,069.00            752.40
      115        91 1/15                   4.83                 1,843.27          :088,225.73           757.23
      116       10/ 1/15                   4.90                 1,843.30          :;:86,382.43          762.03
      117       HI 1/15                    4.77                 1,843.33          284,539.10            766.80
      !1&       12/ 111~                   4.74                 1,843.36          :282, 69_5-. 74       77:.54
    --------------------------------------------------------------------------------
    Subto-::..:11:      58.94       22,118.26      282,695.74                                       771.~4

      !19       !I 1116                    4. 71                1,843.39          280,852.35            776.25

0     120
      1;; 1
      122
      14?3
                21 1116
                31 1116
                41 1/16
                'll    1/lE
                                           4. 68
                                           4.65
                                           4.6?.
                                           4.~9
                                                                1,843.42
                                                                1,843.45
                                                                1,843.48
                                                                1,843.51
                                                                                  279,008.93
                                                                                  277,165.48
                                                                                  275,322.00
                                                                                  27 .' 3,478.49
                                                                                                        780.93
                                                                                                        785.58
                                                                                                        790.20
                                                                                                        794.79
      l:Z~       6.f   1116                •1.56                1,843.54          2"11, 634.95          799.:35
      125       7t     1/1€               4.53                  1,843.57          269,791.38            803.88
      1.i6      61     1/16               lj.50                 1,843.60          267,947.78            808.38
      12':'      9/    1/1€               ·1. 47                1,843.63          266,104.15            812.85
      1<:8      lOi    1/16               -1.44                 1,843.66          264,260.49            817.29
      I~   rf   11/ 1/H                   4.40                  1,843.70          262, 4J.6. 79         821.69
      uo        12/ 1/16                  4.37                  1,843.73          260,573.06            826.06
    --------------------------------------------------------------------------------
    Subtotal:           54.52       22,122.68                          826.06 260.~73.06

      131       l i 1/1'7                 ·4. 34                1,8~3.76          258,729.30            830.<10
      u.o:      21 1117                   4.31                  1,9.(.3.79        256,885.51            834.71
      U3        3/ l/17                   4.28                  1,8.(.3.82        255,041.69            838.99
      134       4/ 1/17                   4.25                  1,8.(.3.85        253,197.84            843.24
      1\!'>     5/ 1/17                   4. 22                 1,843.88          251,353.96            647, "4 6
      136       Ei 1/17                   .:.19                 1,843.91          249,510.05            851.65
      137       7/ 1/~7                   4.16                  1, 84 3. 94       247,666.11            855.81
      136       9/ 1/17                   4.13                  1,643.97          245,822.14            859.94
      139       9/ 1/17                   1.10                  1,844.00          243,978.14            664.04

0
    TAB J
    RR VOL 3 OF 4 AT 14-86
    Page 33 of 86
                                  Ir.ter~     -         Principal          Pri.nci.p.. _     Interest
        u              Cate    This Period           This Period         New Balance         To Date
      1.4C      10/ 1/17                 ·L07            1,84<.03         242,134.1".          868. 1l

0     141
      142
     S..1btotal:
                11/ l/17
                12/ 1/17
                                 50.0~
                                         4.04
                                         4.00
                                                         1,84,.06
                                                         1, 844 .10
                                                   22, 127. 11
                                                                          240,290.0~
                                                                          238,445.95
     ------------------~-------------------------------------------------------------
                                                                      238,44~.95
                                                                                               872.1!:
                                                                                               876.15
                                                                                           876.15
      14~        11    l/18              .'3.97          1,844.13         236, 6.,1. 82        880.12
      144        21    1118              3.94            1,844.16         234,757.66           884.06
      145        31    1118              3.91            1,844.19         232,913.47           887.97
      14f:>      41    1/llt             3.8e            1,844.22         231,069.25           891.8!:
      141        5/    1il8              3.85            1,BG4.25         229,225.00           895.70
      148        61    1/18              3.82            1,844.28         22"1,380.72          89~. 52
      149        11    1/18              3.79            1,844.31         225,536. u           903.31
      15C        8/    1/18              3. 76           1,844.34         223,692.07           907.07
      1!)1       9/    1/18              3.73            1,844.37         221,847.70           910.80
      152       10/    1/18              3.70            1,844.40         220,003.30           914.50
      153       111    1118              3.67            1,844.43         218,158.87           918.1 i
      154       12/    1/:8              J.E4            1,844.46         216,314.41           921.81
     --------------------------------------------------------------------------------
    Subtotal:            45.6&       22,131.!34     2:6,314.41          921.81
      155        11    1119              J.El            1,844.49         214,469.92           925.42
      156        21    1119              3.51            1,844.53         212,625.39           928.99
      15·;       3/    11B               3.54            1,844.56         210,780.83           932.53
      158        41    1113              .L51            1,844.59         208,936.24           936.04
      15c;t      51    1113              J.4&            1,844.62         207,091.62           939.52
      16C        6/    1/19              .l. 45          1,844.65         205,246.97           942.97
      1 61       71    1/19              3.42            1,844.68         203,402.29           946.39
      16~        '3/   l/19               ' · ~q         1.,844.71        201,557.58           949.78
      l& ",;     9/    1/19              .l. 36          1,844.74         199,712.84           953.14
      164       1:.11 1/13               L33             1,844.77         197,868.07           956.47
      l6S.      11/ 1119                 3 . 30          1,84<4.80        196,023.27           959.77
      166       121 1/19                 3.27            1,844.83         194,178.44           963.C4
    --------------------------------------------------------------------------------
    Su.Cto-r.al:        41.23       22,135.97      194,179.44          963.04
      167        1/ 1/2::>            3.24              1,844.86          192,333.58          966.28
      166        21 1/2::>            :3.21             1,844.89          190,488.69          969.4 9
      169        3/ l/2:>             .3.17             1,844.93          188,643.76          972.66
      17C        4/ 1/2':)               ~.H            1,844.96          186,798.80          975.80

0     17l
        ... .
      1-~

      173
      174
                 '51 l/7.::>
                 &I 1/:ZJ
                 1.1 1/2')
                 8/ l/20
                                         "1.1]
                                         .LC8
                                         3.05
                                         3.02
                                                        1,844.99
                                                        1,845.02
                                                        1,845.05
                                                        1,845.08
                                                                          184,953.81
                                                                          183,108.79
                                                                          18:,263.74
                                                                          179,418.66
                                                                                              976.91
                                                                                              981.99
                                                                                              985.C4
                                                                                              988.06
      175        9/ l/20              2.99              1,845.11          177,573.55          991.05
      1/6       10/ 1/2::>            ;!.96             1,845.14          175,729.41          994.01
      177       111 1/20              2.93              1,845.17          173,893.24           9~6.9<4
      178       12/ 1/20              2.90              1,845.20          172,039.04          999.84
    --------------------------------------------------------------------------------
    Subtotal:           36.80       22,140.40      172,038.04          999.84
      179        11 1/?.1             ~·. 117           1,845.23         170,192.81         1,002.71
      11;((•     21 1/21              2.E<              1,84!1.26        168,347.55         1,005.55
      191        31 1/21              :,. .. 6!          1,64~.29        166,502.26         1,008.~6
      1.8.::     •II 1/21             .: • "78          1,845.32         164,656.94         1,011.14
      183        5/ :i./21            2 . 71.           1,845.36         162,311.58         1,013.1:?8
      184        6/ 1/21              2 .. .,1          1,645.39         160,966.19         1,016.~9
      185        7 1 1/21             2. 68             1,645.42         159,120.77         1,019 • .:1
      166        8/ 1/21              :;:.65            1,845.45         157,275.32         1,021.92
      187        91 1121              2.62              1,E45.48         155,429.84         1,024.54
      185       101 1/21              2.59              1,645.51         153,584.33         1,027.13
      189       11/ 1/21              2.56              1,845.54         151,738.79         1,029.69
      190       121 1121              2.53              1,845.57         149,893.22         1,032.22

0
    TAB J
    RR VOL 3 OF 4 AT 14-86
    Page 34 of 86
                                          .lnte:z: _ .   ~     Pri.ncipa1       Princi.p.....   Interest
            Ill              Da't:e    This Period           Thia Per.!.od    New Balance        To Date

     --------------------------------------------------------------------------------
0    5ubtot:al:
       19:
       192
                         32.38
                    1/ 1/22
                       1/22
                    .&.I
                                     22,144.82      l49, 893.22
                                                 2.50
                                                 2.47
                                                                      1,032.22
                                                                :;.,845.60
                                                                :,845 . 63
                                                                              148,047.62
                                                                              146,201.99
                                                                                                1,03"1.72
                                                                                                1,037.19
      193           3/ 1/22                      2.44           :,845.66      144,356.33        1,039.63
      194           .J/ 1/22                     2.41           :,845.69      142,510.64        1,042.04
      195           5/ 1/22                      2."38          : ,845.72     141), 664.92      1,044.42
      196           6/ 1/22                      2 . 3,4        :,845.76      138,819.16        1,046.76
      197           i l 1/22                     2.31           :,845.79      136,973.37        1,049.07
      19a           E/ 1/22                      2.28           :,845.82      135,127.55        1,051.35
      199           9/ 1/22                      2.25           1 ,845 . 85   133,281.70        1,053.60
      200          10/ 1/22                      2.22           :,845.88      131,435.82        1,055.82
      z··,·        11/ 1/22                      2.19           :,845 . 91    123,589 . 91      1,058.01
      202          1: l/22                     2.16           : ,845.94     127,743 . 97      1, 060.17
     -··· ---- --------------------------------------------------------------------------
    Subtotal:                27.95       22,149.25      127,?43.97        1,060.17
      2(o3          1/ 1/23                      2. 1 3         : ,84~.97     125,898.00        1,062.30
      204           21 l/23                      :l.  10        :,846 . 00    124,052.00        1,064 . 40
      205           3/ l/23                      2.07           "- ,846.03    122,205.97        1,066.47
      2Ct6          4/ l/23                      2.04           :,946 . 06    120,359.91        1,069.51
      207           ~·/ l/23                     2.01           :. ,946.09    119,513.82        1,070.52
      206           61 1/23                      l . 98         :,846.12      116,667.70        1,072.50
      209           !/ 1/23                      "!.. 94        ·_,846.16     1 14,1!21.54      1, ()7 4. 4 4
      :l10          t:/ 1/2:J                    l. 91          :,846.19      112,975.35        1,076.35
      ::!1:         9/ 1/23                      1. 88          1,946.22      111,129.13        1,078.23
      212          10/ 1/23                      :.as           :,846 . 25    109,292.98        1,030.08
      213          11/ 1/23                      1 . 82         :,846 . 29    107,436.60        1,091.90
      214          12/ 1/23                      1.79           :,846 . 31    105,590.29        1,033.69
    --------------------------------------------------------------------------------
    .5..lbtota1:        23.!>2      22,1!>3.68     :o!>,!>90.29      l,083.b9
      .21:
      216           -1/. 1/2.;
                    ""'  l/24
                                                 l . 76
                                                 l . 73
                                                                :.,946.34
                                                                : ,946 . 37
                                                                              103,743.95
                                                                              101,897.50
                                                                                                l,oas.45
                                                                                                1, 097.18
      21"1'         3/        l /24              1. 70          1,846 . 40    100,051.18        1,068.88
      21!1          4/ 1/ 2 4                    :.67           :,846.43       98,204.75        1,090.55
      219           !>I 1/:.t.:                  l . 64         :,846 . 46     96,358 , 29      1,092.19
      ....... -_
      2~C
      "')   ,
                    6/ 1/2<:
                    7/ 1/2-i
                                                 ::..61
                                                 1.58
                                                                :,946.49
                                                                :,846.52
                                                                               94,.!:11.80
                                                                               92,665.28
                                                                                                1,093.80
                                                                                                1,095.38

0     22.2
      2 ::: 3
      224
      :.2.;;5
                    e/ 1/24
                    9/ 1/2.;
                   10/ 1/24
                   11/ 1/4!-'
                                                 l. 54
                                                1. 51
                                                1.48
                                                l. 4!>
                                                                : ,846.56
                                                                1,846.59
                                                                : ,846 . 62
                                                                l,84ti.65
                                                                               90,618.72
                                                                               88,972.13
                                                                               87,125.51
                                                                               8:>,278.86
                                                                                                1,096.92
                                                                                                1,098.43
                                                                                                1, 09~. 91
                                                                                                1,1:>1.36
      2~6          1~/ 1 / 24                   l. 42           :,946.68       83,432.18        1,1:>2.78
    --------------------------------------------------------------------------------
    Subtotal:           19.09       22,158.11       83,.;32.18       1,102.7:3
      =~2-,         1/        1./7.5            1.~9            :,846.71       81,585.47        1,1:>4.17
      2:0:8         ".e. I    1/2!>             1. 36           l ,846.74      79,738.73        1,1.)!'>.'>3
      229           3/        1/25              1.33            1,946.77       77,891.96        1,1:>6.86
      2~0           4/        1/25              1. 30           :,846.80       76,045.16        1,108.16
     2.3:           51        1/25              1.27            :,946.83       74,198.33        1,1:>9.43
      232           6/        1/25              1. 24           :,846 . 86     72,351.47        1,110.67
     233            -,/       1/2!'>            1.21            :,946.89       70,504.58        1,111.88
     2 .H           E/        1/:<5              l •. lB        :.,846.92      68,657.66        1,113.06
     235            91        1/25              1.14            :,IJ46.9&      66,810. "/0      1,114.:.!0
     236           1 C/       l/25              1.11            :,946.99       6-1,963.71       1,115.31
     237           11/        1/25              ]. 08           :,847.02       63,116.69        1,116.39
     238           1~   I     1/25              1.05            :,947.05       61,269.64        1,117.44
    --------------------------------------------------------------------------------
    5ubt<:>t: a.l:      14 . 66     22,16:! . 54    61,:!69.64       ],117.44

0
    TAB J
    RR VOL 3 OF 4 AT 14-86
    Page 35 of 86
                                       :nte:.-~t                  Principal          Principa.1..         Interest
                          Date      This Period                 This Period        New Balance             To Date

    •     239        1/ 1/2€                   ~.     0-'         1,847.08           59,422.56            1,118.46

0         240
          241
          242
          243
                     2.1 1/:.i!E
                     3/
                     4/
                     5/
                          l/26
                          1126
                          1/26
                                               ·: . i:O~
                                               ('.96
                                               0.93
                                               0.90
                                                                  1,847.11
                                                                  1,847.14
                                                                  1,847.17
                                                                  1,. 847.20
                                                                                     !17,575.45
                                                                                     55,728.31
                                                                                     53,881.14
                                                                                     52,033.94
                                                                                                          1,119.45
                                                                                                          1,120.41
                                                                                                          1,121.34
                                                                                                          1,122.24
          244        6/   l/26                 C.87               1,847.23           50,186.71            1,123.11.
          245        1/   l/26                 0."84              1,847.26           48,.339.45           1,123.95
          246        6/   l/2f                 G.Sl               1,847.29           46,492.16            1,124.76
          2.4 7      9J   l/26                 (';. 77            1,847.33           44,644.83            1,125.53
          248       10/   l/26                 C.74               1,847.36           42,797.47            1,126.27
          249       11/ l/26                   ('.71              1,847.39           40,950.08            1,126.98
          250       121 1nt:                   C.Gil              1,847.42           39,102.66            1,127.66

        Subtotal:                     10.22                 22,166.98            39,102.66           1,127.66

          25~        1/ l/27                   0.65               1,847.45           37,255.21            1,128.31
          252        21 1/27                   (•. 62             1,847.48           35,407.73            1,128.93
          253        3/ l/27                   0.59               1,847.51           33,560.22            1,129.52
          254        4/ :/27                   n.so               1,847.54           31,712.68            1,1.30.08
          ;.;s!:>    ':>/ l/'2"i               0.:03              1,847.57           29,865.11            l,J.l0.61
          256        6/ 1/27                   C'.5.:l            1,847.60           28,017.51            1,1.31.11
          257        7/   1;2 :                0.•17              1,847.63           26,169·. 88          1,1.31.58
          258        8/ l/27                   .~ .   44          1,8!17.66          24,322.22            1,132.02
          259        9/ 1/27                   o:·. 41            1,847.69           22,474.53            1,132.43
          260       lCJ/ l/27                  o.:n               1,847.73           20,626.90            1,132.80
          26:       11/ 1/2 7                  0.34               1,847.76           18,779.04            1,133.14
          262       12/ 1/27                   0.31               1,847.79           16,931.25            1,133.45
        ~ub•. ot-a1:                   5. 79                22,171.41            16.931.25           1,133.45
          2 63       1/ 1/2F.                  •·1. 2S            1,847.82           15,083.43            1,133.73
          264        21 1/28                   .:•.25             1,847 . 85         13,235.58            1,133.98
          265        31 1/211                  0 .22              1,847.88           11,387.70            1,134.20
          .266       •1/ 112e                  0.19               1,847.91            9, 539.79           1,13<.3~
          267        5/ 1/2€                   (). 16             1,847.94            7,691.85            1,134.55
          26B        6/ 1/2E                   0.:3               1,847.97            5,843.88            1,134. Ga
          2tj~       ,, 112e
                     -'                        •' . 1 ::>         1,848.00            3,995.88            1,1:;4.78
          2-:'0      8/ l/2E                    ~.. . 07          1,848.03            2,147.85            1,1"34.85
          271        9/ l/28                   0.04               1,848.06               299.79           1,134.89
          272       10/ 112e                   0.0::>               299.79                   o.oo         1,134.83

0       ~ub<:.otal:

        Final payment amount:
                                       l. 44                :6,931.25
                                                       299.79
                                                                                      0.00           1,134.89

        Total paymont.:::           !>01,13·1.89            Principal:         500,000.00     Interest:      1,:34.!39

            Sett.lngs:        360 A:rr Prel?o·J 1950 :2 perYr

0
        TAB J
        RR VOL 3 OF 4 AT 14-86
        Page 36 of 86
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0
    TAB J
    RR VOL 3 OF 4 AT 14-86
    Page 37 of 86
      ;_, .
                                         M ARTIN & MILLICAN
                                               ATTORNEYS AT LAW
                                                512 E FOURTH STREET

0                                              LAMPASAS. TEXAS 76550
                                                     (512) 558-6228
                                                  (512} 556-8621

                                                                              PAGE NO 1
                                                                                 June 15, 2009
              MR. & MS. JOHNNY WADE                                    Account No. 16163-00
                REDACTED
              REDACTED REDACTED
                              REDACTED
                       REDACTED

              RE: MODIFICATION OF NOTE

                                                                        HOURS
    04/16/2009         OFFICE CONFERENCE WITH CLIENT                      0.40               68.00
    04130/2009         TELEPHONE CALL TO LORI GRAHAM                       0.03               5 .10
                       TELEPHONE CALL FROM CLIENT                          0.06              10.20
    05106/2009         TELEPHONE CALL TO LORI GRAHAM                       0.03               5.10
    0511312009         TELEPHONE CALL TO LORI GRAHAM                       0.06              10.20
    05/1412009         TELEPHONE CALL FROM AMANDA WADE                     0.03               5.10
    05126/2009         TELEPHONE CALL FROM AMANDA WADE                     0.06           10.20
                       PREPARED MODIFICATION AGREEMENT                                   125.00

0
    06/1512009         PREPARED LETTER TO CLIENT; COPY TO HOLDER           0.12           20.40
                       FOR CURRENT SERVICES RENDERED                       0.79          259.30
    06/0212009        PAID TO BURNET CO. CLERK CK #18984                                     40.00
                      TOTAL EXPENSES                                                         40.00
                      TOTAL CURRENT WORK                                                 299.30

                       BALANCE DUE                                                      $299.30

                      Please Remit                                                      $299.30

                      THANK YOU

0
        TAB J                                                                     REDACTED
        RR VOL 3 OF 4 AT 14-86
        Page 38 of 86
                                                                                noo
                                                       IIMI H IIIII             8 PGS
                                                                                             2889t5193

                                                      MODIFICATION AGREEMENT

                    Date: May 1, 2009

0                   Holder of Not. and Uen:
                    Holder'a Mailing Address:
                                                   EDELL WADE

                                      REDACTED
                                     REDACTEDREDACTED
                                    Bumet County
                    Obligor:        JOHNNY WADE and AMANDA WADE, husband and wife
                    Obligor's Mailing Addraae:
                                    REDACTED
                                    REDACTEDREDACTED
                                    Lampasas County
                    Nota
                             Date: February 6, 2004
                             Original principal amount: $500,000.00
                             Borrower:     JOHNNY WADE and AMANDA WADE, husband and wife
                             Lender:        EDELL WADE
                             Maturity date: February 1, 2036
                    Unpaid Principal and lnterast on Note: $227,528.00
                    Uen Documents: Deed of Trust dated February 8, 2004 from .JOHNNY WADE and AMANDA
                    WADE to PAT E. CAVNESS, Trustee, recorded as Document 002424, Volume 1223, page 503,
                    Offi~al Public Recorda of Burnet County, Texaa

                    Property (Including any Improvements):

                             That certain real property In Burnet County, Texaa, mora particularly deacnbed In Exhibit
                             "A" attached hereto and made a part hereof for all purpoaBS.
                    Extended Maturity Date of Not.: March 1, 2025
                    Modified Terms: The Interest rate on this Modification and Extension shall be zero CO%) percent
                    per annum. Principal shall be due and payable In monthly Installments of ONE THOUSAND TWO
                    HUNDRED AND N0/100 DOLLARS ($1 ,200.00) each beginning Juna 1, 2009 and continuing
                    regularly on the first date of each succeeding month until paid.

0                         •THE PARTIES STATE HEREBY THAT THIS MODIFICATION IS FOR THE SOLE
                    PURPOSE OF EUMINATING THE OBLIGATION OF OBUGORTO PAVTO HOLDER INTEREST
                    ON THIS LOAN.•
                          The Note IS securad by Ilana agalnat the Property. Whether Obligor Ia Primarily liable on
                    the Note or not, Obligor navarthel- agree& to pay the Note and comply with the obftgatlona
                    expreased In the Lien Documents.
                           For value received, Obligor renews the Note and promlaas to pay to the order of Holder of
                    Note and Lien, according to the Modified Terms, the Unpaid Principal and Interest on Note. All
                    unpaid amounts are due by the Extended Maturtty Data of Note. ObHgor also extends the liens
                    deacribed In the Lien Documents.
                          The Note and the Lien Document& continue aa written, except as provided In this
                    agreement
                            Obfigor warrants to Holder of Nota and Uen that the Note and the Lien Documents, as
                    modified, are valid and enforceable and represents that they are not subject to rights ol offset,
                    rescission, or other claims.

                                                                   - 1-

0
    TAB J                                                                                                                REDACTED
    RR VOL 3 OF 4 AT 14-86
    Page 39 of 86
                             When the context requires, singular nouns and pronouns Include the plural.

0                                                                            EDE      :ADE

                                                                           ~~-
                    ST:ATE OF TEXAS                      §
                                                                                                                      . 2009, by

                                                                            Notary  bile, State of Texas
                                                                            My commhsslon expires: /.-: · ·'< ~ '( .! ·

                    STATE OF TEXAS                       §
                         This instrument - • acknowledged before me on ,. - -;; /. (                li .{ .   .:/     • 2009, by
                    JOHNNY WADE.                                            ,

                   STATE OF TEXAS                        §

0
                   PREPAR&D IN THE OFFICE dl.....;,..,;,,..,;~;;:;;,.;;,:;,.;~
                   MARTIN a MILLICAN
                   512 EAST FOURTH ST.
                   LAMPABI'II. TX 785!10
                   m. ~~~:::,
                   AFTER RECORDING RETURN TO:
                   MARTIN a MILLICAN
                   !112 EAST FOURTH ST.
                   I.AMPAMS. TX 711560
                   TEl.: (512) 5118-GD
                   FAX: (512)l!Dtl-ll821

                                                                             -2-

0
    TAB J
    RR VOL 3 OF 4 AT 14-86
    Page 40 of 86
0

                                                                              • · ao1d
                                                                  ~-~~~n!rn~!o~!~~.
                                                              in Burnet .Couney; 'r_aa, ·ena
                               t.                             .    ·.   • .                      .
                             JPiJ•at 'l'raott, West. Ono Ql>o.rter ~ Soc. 60; beill!I ane hundred ·
                             ab:'lli five 11nd· 28/l.oo aoree in llarnot Onunty; 'l'axaa, out or tho
                             ~:~•J~>~::·•! n=~1:;:;:/=~~.~~~={·~~~Lu.;!~ ~~~· alfi. :·
                             '\noa . tl 9f B 21~ vra. a do ll ' 8-)/14. l!l 21~ vra. , "l'henoe with the
                              N 1lne o1' the add A. lt. Ae'M':r Bur • . W 71 ~ 9~5 vr• at 11ld on ·the
                              aaid 'II 1.1ne J'rca wb1oh l;h&. lf B oor o1' the aft1d A~ U. lklrr;r
                              Bur          II 1'1 B s·     'l'ha Jl, B. cor of tlhe aa1CI.DeJ'Y7 .eUJ"; . 18 .
                                             a at 1ll4   Mit. Db ll I..&t'fiG L, Q, 11llq"keCI bra Jl ·     '
                                                         Jl, 19' w. with tbe:W 11ne               :S

0                                                                     top         or·
                                                                                Dlll1'J' at
                                                                          oo:r. o'l'· tbe a
                                                                                         Blh'~

                                    · . "'   '           ..
                                                          ~

0
    TAB J
    RR VOL 3 OF 4 AT 14-86
    Page 41 of 86
0
                             26th, 187.3· . DasSDnlns
                                   ·If '71 D i'J"OM the .
                                    -vra a at md.
                                 br• sl B · 162 vr~. ·
                                     wbenaD a J...       o.
                                           '1'h 8 19 E
                                                a l.'tr-nob

0

                                     --_·
                                     ·')
                                     .

0
    TAB J
    RR VOL 3 OF 4 AT 14-86
    Page 42 of 86
                                                                                    ..·. ·               ..   -".

0
                                             :..nd Ji:mll'la S7.1vea'bero. deaaaeed, ·tbe unslerutsnod arant:ora be.lj,ob7 con~o7-
                                              tnr. unto ~- eranteae bereln and und1v1dad rive-alxtba lSI~ 1nte~aat
                                             1nlthe aboYe deacr1bacJ 1and, the grantoe Ede11 S~1•eater Wade ovn1nc
                            -"'.              the- ot.ha~ undclvi-del) one-a1xt.h · (l./bl 1nte~aat t~•~•1n ·a'! one or 1:ho
                                            · daY~aaoa ot the A. H • .nd Emma Sy~vaetar, deOaaaad.
                                        .         '1'0 lli\VP. t.lUl TO l!OLD· !>he above deec~J.'bed pr-1aea, tosathor w1U> ·
                                              a11 and. •~nAU1ar, tNe rlgbta and' appartenancea thereto ln an~oe
                           · ·                'be1~&M;LW..i:%        ih~:;ie.~'~:r= W•d• and wi.te lld'eU s-,1nal>or                          •
                                                                                                 ·~a-o"";;A.,;.al'r'8~·1.niSfo.o-!l!.,l\:rlt'l• ·_;
                           f$
                            •
                                    .! IIOI!III'dl-.
                                 ..; ~ .,
                                                                .      ·     .
                                              ouz"'·l ieJ..rri.'Vexaoutaara · and " adllllnlat~atara. · to'""Wirrariii=... u.a"7u1'·o vor
                             ~:• 9 ·.. Dat'and" a11 . and a.1ngu1ar i the •a,!>:l.d preml.aaa unto 'the· Sil:l.d Qha~l.oa · Otto
                                          . Wou!a llld w1t'a B:da11 8'11Yeat:er Wade, t:hei.r heirs and llaalgna asainat
                                       ewe~ peraan · whomsoever 1aw~u11y ola~lftR, or to o~D~ the aano, or
                                       a.n7 part tbarenf'.                  ·                                 .·
                                             But: it: 1a' eapraeal.-, · ~·oed and at1pu1atod that tho Venda~'• Lien
                                       and IIUptt,ri.or t1tl.a Are t-eta1.ned ~~~a1nat the AbnVCt aeocr'ibOd J1roport7
                                       pr._laea· and ~rnv.men~a. in tavor at · Man~el Delbert · D71V•oter unt~1
                                       tba abo•• deaorlbed no~o ~d o1~ lnte~eat: thereon are . ru11y paid
                                       e."!loo:rdin& to lta .raae und tonor, a.t1'ect a. nd r•adlna,, •hen tlrl.a deed
                                       ablll1 \utoDII!a ·nbaolut:a.       ·
                                             Wit:noan our hande . ~t Lampaaaa, 'l'axo•, thla 1st de~ or ~ahua~,
                                       J\.   n • .1.9S2·                        ·

0

                                                                                                                                  A
                                                                                                                       . ~.        5      .., ,4·.. ··~ 1

    0
        TAB J
        RR VOL 3 OF 4 AT 14-86
        Page 43 of 86
                             (

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0
    TAB J
    RR VOL 3 OF 4 AT 14-86
    Page 44 of 86
                               .. ·.. /1
                         ~
                              ..~...
                             .:-:·     ~
                                           A . .;;\~ES

TAB J
RR VOL 3 OF 4 AT 14-86
Page 45 of 86
0

0
                              FILED AND RECORDED

                             e~P:=,_,OI
                               .JWW~ • · ~         te:e1 : 4a Aft
                                         FEll: . . . . . .
                               J'•n.t p_..• .,.. County Cl.rk
                                   lk.arnet Count.y,    Te•ae

0
    TAB J
    RR VOL 3 OF 4 AT 14-86
    Page 46 of 86
                                                                                                                                                  -,..       I
                                                                                                                                                                 /   •• ,
                                                                                                                                              I   .:->

0                                                                                   r.tARTIN & ~:·u.tCA~
                                                                                   A-TCRNEYS A-r LA\-'.'
                                                                                  ~: :.' E rouRTH STREET
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                                              CAUSE NO: P9127
0        IN THE ESTATE OF                             §        IN THE COUNTY COURT AT LAW
                                                      §
         EDELL WADE                                   §                                       OF
                                                      §
         DECEASED                                     §                BURNET COUNTY, TEXAS

                             RECORD OF EXAMINATION ON WRITTEN QUESTIONS

                Following Is a record of the testimony given at the deposition of MICHAEL MARTIN
         taken on behalf of AMANDA WADE pursuant to Rule 200 of the Texas Rules of Civil
         Procedure, at 512 East Fourth St., Lampasas, Texas 76550, which commenced at 9:00
         a.m. and which was taken by the undersigned, Elizabeth Watson, duly appointed to take
         the Deposition on Written Questions in the notice. There were no appearances by the
         parties or their counsel. MICHAEL MARTIN, the deponent, was duly sworn on oath, and
         the testified, a true record of which is as follows:

         Direct examination:

         Question 1.     Are you a licensed attomey in the state of Texas?

                 ANSWER:         Yes

         Question 2.     How many years have you been licensed to practice law in the State of
                         Texas?

                 ANSWER:        42 years

         Question 3.     Where is your practice located?

0                ANSWER:         Lampasas, Texas

         Question 4.     Did you, at any time, represent Edell Wade?

                 ANSWER:         Yes.

         Question 5.     Please state the dates that you represented Edell Wade?

                 ANSWER:         January 2007, March 2007, December 2007, April and May 2009

         Question 6.     What documents did you prepare for Edell Wade?

                 ANSWER:         Combination Directive to Physicians and Family or Surrogates and

                                                      -1-

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    Page 51 of 86
0                              Medical Power of Attorney dated January 29, 2007

                               HIPAA Release and Authorization dated January 29, 2007

                               Statutory Durable Power of Attorney dated January 29, 2007

                               Statutory Durable Power of Attorney dated March 21, 2007

                               Will of Edell Wade dated January 29, 2007;

                               Modification Agreement dated May 1, 2009

          Question 7.    In regard to the Loan Modification dated May 1, 2009 attached hereto as
                         Exhibit No. 1 , did you prepare this document?

                 ANSWER:       Yes

          Question 8.    Were you present when Edell Wade signed the document listed in Question
                         No. 7?

                 ANSWER:       I am not sure whether I was but I believe I was not.

          Question 9.    Were you satisfied that Edell Wade was signing the document, listed in
                         Question No. 7, of her own volition?

                 ANSWER:       I had no reason to think she was not.

          Question 10. Did each of the documents that you prepared to Edell Wade represent the
                       wishes of Edell Wade as you understood her wishes?

0                ANSWER:       Yes.

          Question 11. Do you believe that Edell Wade understood each of the documents you
                       prepared for her when she signed them?

                 ANSWER:       Yes.

                                                                  January 31, 2012
          Michael Martin                                         Date

                                                     -2 -

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                 Before me, the undersigned Notary Public, on this day appeared Michael Martin,
0        who, after being duly sworn by me, testified under oath that the answers given in response
         to the questions propounded in the foregoing Deposition by Written Questions are true and
         correct to the best of his knowledge. SUBSCRIBED AND SWORN TO BEFORE ME on
         Januarv 31. 2012                     , by Michael Martin.

                                                          Nota~ithuc,   State of Texas

0

         bp/15. 707/lllgal1onlwllde

                                                    -3-

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0         JN THE E STATE OF
                                                   CAUSE NO.:

                                                      §
                                                                     P 9127

                                                                    IN THE COUNT Y COURT AT LAW
                                                      §
          EDELL WADE                                  §              OF
                                                      §
          DECEASED                                    §             BURNET COUNTY, TEXAS

                         NOTICE OF INTENTION TO TAJf>·
                                                                                           SHELDON E . RICHIE

         57996.1                                                        EXHIBIT"A"                                                        .JC

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0         J>OCl 1.UJ::,'\'1:'VIlVFOR.'l-IA T/ON REOI/1-..".\'Tf<."/)

          I.      All ll:.: and•or engagement agreements between        Y\lU   and Amnnda \Vndc entered into
                  bct\\C&:n January I. 200J and December 31. 2010.
                  Alii~~ ml\L'Ilr cngag.:mcnt agnxmcnt~ between you and Edell \\'ade entcre\1 into bctnccn
                  .hmuary 1, ~003 and December 31. 2010.
          3.      All docum..-nts re..-iewed by you in pr.:paring the Modification   Agreement.-~_,·~----.<. """'~- -(
          4.      .--\11 tic>euments reviewed by you in preparing the Will nfF..Jdl \Vade. -_.,
                                                                                              3 J  ~ ,.C.~
                                                                                             v-1.~
          Definitions:

          1.      ··You:· as used herein shall refer to Armbrust & Brown. PLLC. and its otlicers.
                  members. re-presentatives. cmployco.:s. agents. and 'or nil other persons       actin~!   on or
                  purporting to act ('fl it.s t.ehalf.

                 ··Amanda Wade .. us us~d hcrein shall refer h) Amanda \\"adc. her rcprcsentati\cs.
                 agents. and-'nr all uther persons acting on or purporting to act l'ln her bchalt:

         3.      .. Edell Wade·· as used herdn shall rcf~r tn Edell \Vade, her rqlrt:!>entutivt.-s, ugcnls.
                 ~md/nr  all othcr persons acting on nr purpnning hl al~l un her hc:=-half.

         4.      '"Dot"um~nts··     shall have the: menning intended hy Rules I 92.3(h) and 196 of the Texas
                 Kuks nl Ch il Procedure. includ\!S, by way of illustration only and nN by way of
                 limitation. the following. whether printed or rcpn.,du.:ed by any process. or written or
                 produced by hand, and whether or not claim~d to bo.: privilesed or otherwise excludahlc
                 from discovery. namely: computer H1pes. disks. drums. memory core:c;. hard drh1es or
                 nther Cl>mputer rn<-dia: en Rom disl..s: nvn disks; computer printouts; statistical
0                ~·o•npihHinnc; or printout-. or other lists: itineraries: correspondence: (;Ommunication of
                 any nature: telegrams: memoranda including internal memoranda and memoranda to the
                 lile. nr•tcbooks of any character; chnns: summaries or records of personal conversations:
                 nut.::; or rt.·cords of telephone con\'ersations. voice mail or telephone messages: scratch
                 pad notes: e-mail messages; dc-cuments sent or rec.:dved via the Internet or other
                cumpuh:r on-line S<:"rvice: calt:ndars; diaries l,T excerpts therefrom: k•gs; routing slips or
                mcnwmnda: reports: puhJications; photugraphs: minutes or rcl·nrds of meclin!•.s:
                transcripts nf oml lt.'Siimuny ur slatcmo.:tlls: n:pnrts nr summ;,~rics of intcn-·icws: written
                ..;taktn~·nts : nfli&lavils: rcpurt~ nr summaries of investigations. agreements und cuntmcts.
                including all modifications llr revisions thereof: rcptlrtS or summaries of negotiations:
                \:nurt papers: brochures: pamphlets; press releases: drafts PI: re\ isions of drat1s. or
                tran!"lat iuns of any document; tape recordings; dictation reemdings and helLe;; videotapes:
                dutu compilntions; or all other tangible items. Any document ·w ith marks on any she.:~ or
                !'ide thcr~ot: including by way of illustration only and not by way of limitation, initials.
                ~t.1mp.:-d indicia.. fax notations, any comment or any notation pf any character and not a
                pan l'f the original text, or any reproduction thereof. is to be L'onsiJ~r~d a s~puntlt.·
                                                             EXHIBIT

                                                             II

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    RR VOL 3 OF 4 AT 14-86
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    .,
    ..

0                      document for purposes oftbis request. "Document, also includes any copy of an original
                       document if the original is unavailable.

               5.      "::\fodification Agreement" shall mean tbe Modification Agreement dated May 1, 2009,
                       between EdelJ Wade as Holder, and Johnny Wade and Amanda Wade, as Obligors, and
                       modifYing the Promissory Note dated February 6, 2004, in the principal amount of
                       $500,000.00.

               6.      "Will of Edell Wade" shall mean that certain Will executed by Edell Wade on January
                       29, 2007, and witnessed by Barbara Potts and Liz Watson, and notarized by Diane
                       Varner.

               7.      "Property" means the+/- 475 acres made the subject of this suit, more commonly known
                       as   REDACTEDREDACTEDREDACTEDREDACTED
               8.      ..Or" means "and/or."

0

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    .. ..
                                                               NO. P9127
                                                                   ·"§

0             ESTATE OF EDELL WAOE, DECEASED

              vs
                                                                    §
                                                                    §
                                                                    §
                                                                   .§
                                                                                     IN THE COUNTY COURT AT LAW

                                                                                    . OF
                                                                    §
                                                                    §                QURNET CdUNTY, TEXAS
                                                                    §

                               _  QUESTIONS TO BE PROPOUNDED TO THE WITNESS,
                      THE CUSTODIAN OF RECORDS FOR: MARTIN & MILLICAN NIK/A MARTIN, M ILUCAN,
                                             HENDERSON &.SHRUM

             1. Please state your full nama, occupation, and/or official title.

             ANSWER·-----------------------------------------------------------------
             2. Did you receive a Subpoena Duces Tecum for the production of: ALL DOCUMENTS AND/OR ITEMS
             AS REFERENCED IN EXHIBIT "A" ATTACHED HERETO AND MADE A PART HEREOF pertaining to
             EXHIBIT "A"?

             ANSWER----------------------------------------------------------------
             3. Are you able to Identify these records as the original or true and correct photostatic copies of the
             originals?

             ANSWER~--------------------------------------------------------------
             4. Were these records macle and kept in the regular course of your business? (Business means any kind
             of regularly organized activity, whether conducted for profit or not).

             ANSWER·------------------------------------------------------~~~-----
            5. In the regular course or your business, did the person who signed or otherwise prepared these records

0           ellber nave personal knowledge of tile entries on these records or obtain the Information to make such
            racords from sources who have such personal knowledge?

            ...ANS
            6 . Are these records under your care, supervision, direction, custody or su"Jeetto -your control?

            ANSWER·----------------------------------------------------------------
            7. Are these records made at or near the time of the act, evant or condition recorded on the records, or
            reasonabllt-.soon   the~er   pertaining to the Incident In question?

            ANSWER~--------------------------------------------------------------
            8. Were these records kept as described above?

            ANSWER·-------------------------------------------------------------------

            57996.1                                             EXHIBIT "A"                                            JC

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          9. Have you been requested, directed, or has it ever been suggested by any person (whether doctor,
          lawyer or al)yone.ea.e) that any part of the records subject to this deposition be withheld or protected tram
          discovery for any reason? ·If so, please state the name and address of the person who conveyed this

0         infonnatlon to you and when such event occurred.

          ANSVVER________~--------------------------------------~--------------
          10. , Are there any other locations where MARTIN & IIIIILLICAN N/1n Expl,..

    57998.2                                                         EXHIBrr"A"                                               .JC

0
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           Page 68 of 86
0   Date: February 6, 2004
                                                Promissory Note
                                                                                rti COPY
    Borrower:        JOHNNY WADE and AMANDA WADE, husband and wife.

    Borrower's Mailing Addrea:

                     JOHNNY WADE and AMANDA WADE
                     REDACTEDREDACTEDREDACTED
                        REDACTED
                     Riverside County

    Lender:          EDELL WADE

    Plaee for Payment:

                      REDACTED
                     Lampasas, Burnet County, TX 76550, or any other place that Lender may designate in
                     writing.

    Principal Amount:        $500,000.00

    Annuallntereat Rate:            Two Percent (2%)
    Maturity Date:           February I, 2036

    Annual Interest Rate on Matured, Unpaid Amounts:             Twelve Percent (12%}

    Terms of Payment (priDclpalaad latereat):

0          Aa:rued interest is payable on the 1st day of March, 2004 and on the 111 day of each succeeding
    month through February 1, 2006. Principal and interest are due and payable in monthly installments of ·   -
    ONE THOUSAND EIGHT :m.JNDRED FORTY-EIGHT AND 10/100 DOLLARS ($1 ,848.1 0), each,
    beginning February 1, 2006, and continuing regularly on the 1"' day of each succeeding month until
    paid Payments will be applied first to accrued interest and the remainder to reduction of the Principal
    Amount.
    Security for Payment:
           This note is secured by a vendor's lien and superior title retained in a deed from EDELL
    WADE to Borrower dated of even date herewith and by a deed of trust of even date herewith from
    JOHNNY WADE and AMANDA WADE to Pat E. Cavness, Trustee, both of which cover the
    following real property:

            That certain real property more particularly described on the attached Exhibit ..A".

     111323-2 0210412004

0
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0   Other Security for P ayment: None

           Borrower promises to pay to the order of Lender the Principal Amount plus interest at the
    Annual Interest Rate. This note is payable at the Place for Payment and according to the Terms of
    Payment. All unpaid amounts arc due by the Maturity Date. After maturity, Borrower promises to pay
    any unpaid principal balance plus interest at the Annual Interest Rate on Matured, Unpaid Amounts.

            If Borrower defaults in the payment of this note or in the performance of any obligation in any
    instrument securing or collateral to this note, and the default continues after Lender gives Borrower
    written notice of the default and ten (10) days opportunity to cure such default. Lender may declare the
    unpaid principal balance, earned interest, and any other amounts owed on the note immediately due.
    Borrower and each surety. endorser, and guarantor waive all demand for payment. presentation for
    payment. notice of intention to accelerate maturity, notice of acceleration of maturity, protest. and
    notice ofprotest. to the extent permitted by law.                                         ·

            Borrower also promises to pay reasonable attorney's fees and court and other costs if this note
    is placed in the hands of an attorney to collect or enforce the note. These expenses will bear interest
    from the date of advance at the Annual Interest Rate on Matured, Unpaid Amounts. Borrower will pay
    Lender these expenses and interest on demand at the Place for Payment. These expenses and interest
    will become part of the debt evidenced by the note and will be secured by any security for payment.
    Prepayment:
           Borrower may prepay this note in any amount at any time before the Maturity Date without
    penalty or premium.

    Applicatioa of Prepayment:
           Prepayments will be applied to installments on the last maturing principal, and interest on that
    prepaid principal will immediately cease to accrue.

0           Interest on the debt evidenced by this note will not exceed the maximum rate or amount of
    nonusurious interest that may be contracted for, taken. reserved. charged, or received under law. Any
    interest in excess of that maximum amount will be credited on the Principal Amount or, if the Principal
    Amount has been paid. refunded. On any acceleration or required or permitted prepayment, any excess
    interest will be canceled automatically as of the acceleration or prepayment or. if the excess interest has
    already been paid. credited on the Principal Amount or, if the Principal Amount has been paid.
    refunded. This provision overrides any conflicting provisions in this note and all other instruments
    concerning the debt.

            Each Borrower is responsible for all obligations represented by this note.

            When the context requires. singular nouns and pronouns include the plural.

            If any provision of this note conflic:L'i with any provision of a loan agreement, deed of trust, or
    security agreement of the same transaction between Lender and Borrower, the provisions of the deed of
    trust will govern to the extent of the conflict.

     181323-2 0210412004                                                                                     2

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0          This note will be construed under the laws of the state of Texas, without regard to choice-of-
    law rules of any jurisdiction.

                                                                                   c
                                                        A:.'\fANDA WADE

0

      181323·2 0210412004
                                                                                                            3

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0                   :: -·..
                                                                                                                     EXHIBIT A

                                                                  . KNOW ALL MEN B'T THESE PRESENTS:
                                     COUNTY ~F LAMPASAS I
                                        That we, · Manae1 Delbert Sy1vester and Chester Horace Sylvester, in-
                                     dividually and as independent executors of the willa and estate3 o~
                                     A. H. Sylvester and wife Emma Sylvester, both deceased, Mi~lie S~lvester
                                     wife of Manuel Dalbert Sylvester, Melba S~lvester, ~1te ot Chester
                                     Horace        s1:-.r, Lenora S-ylvest .. r nutl.Ar, and·hUShAnd Austin M. Bl1t1er
                                                   star Stewar.t and husband Ivan 111. Stewart, o.     ell

                                  ;,t\:~el,b                                                                             or and· in· .conaide.rat:lcn
                                  -~r o1''"~the                                                                        1ars · to· us in han!i · .    ·
                                 · · Pfl.td · and ' secured ' to                  , paid                        ·~ada: and "wi~e· Edel} Sy1veater
                                      -Wade' aa follows: · '                     ·· ·-- ·· ••·                   ·•. . , '
                                             'l'wel.ve ·'l'housand ($12,000.00) Do1lars·•-cash in hand paid, the receipt
                                       of ' wh:lch is herebT acknowledged and for which no lien expreaaed or
                                       im~~~~etained or shall exist and one promissory Vendor's Lien
                                       no~~~~~ 'date herewith given by the sa:ld Charles Otto Wade and
                                       wire Edell. ' Sylvester Wade, payab1e at the express reqtlast a:nd ':,direction
                                     . o~ _al.l the parties he~eto to Manuel· Delbert Sylvester -or order, due-
                                       en or before February l, 1952, with interest ~hereon ~rem maturity
                                       nntil. paid at the rate of ' six (6") per cent per annum, said nate
                                       being payab1e at Lampasas ·, Texas, and providing fer 'the usua1 Vendor• s
                                       Lien and ten per cent attorney's fee cl.auses, and the Vendor's Lien
                                       and superior title retained · in this deed to secure,the payment or sa:ld
                                       note are hereby trans£erred 'and siRned ·to the said Manuel Delbert
                                      ·sy1ves~er, hls heirs and assigns, and the undersigned ~ranters hereby
                                       acknowledge that the rull and entire consideration fer this ccnve~ance
                                       has been                     to them and that the•r do not have, hold or claim sny
                                                                         and._pnam1.aaa-c.OA~~·d-Jo.e.-b;;: ~z.a•p·'l;,.eao~n~.,t.a....LJ.ea.
                                                                  title ~ · favor · or said Manuel-o&lbert-s~lvester, his heirs
                                       and aasiRns as aforesaid; have Granted, Sold and Conveyed, and by
                                       these presents do Grant, Sell. and Convey untcuthe said Charles Ottc
                                       Wade and wife Edell Sylvester Wade or Durnet County, Texas, a1l that
                                        certain real estate sitQatad in Burnet .county; Texas, and described as
                                       fo1lows:                                                         ·
                                                  First Tract: West One Quarter or Sec. 60, being one hundred
                                                  sixty five and 28/100 acres in nurnet County, ToxBs 0 ou~ of the
                                                  Texas Central ftR1lroad Company Survey, bep,inning at the N. w.
0                                                  cor. or the A. M. Derry Survey, a set stone from which a L 0
                                                   bra !T 9~· E 216<\ -no a. a do N B-3/4 E 219·~ vrs. Thence with the
                                                   N line of the said 11.. M. !'larry Sur. fiT 71 E 945 vrs st md on the
                                                   said N line rrom wh1.ch the N r~ enl'" or the se1d A. 111. '!'larry
                                                   Sur. bra tt 71 E S vrs. The n. E. cor or the seld Derry sur. is
                                                   marked by a a.t md 1'rom \-mich a Larp,e L. o. m11rked U bra N
                                                   42?; W 2SO vra. Thence N. 19 VI. wi.th tho W l.ine o~ t.he E 3/4
                                                   of Sec. No. 60, at 410 vra. the top or Hluf~ at 460 vrs. cor.
                                                   on the Tlest Edge of Branch at N W cor. of the said E 3/Li- or
                                                           • No 60 on the~ . s ·line··of the Thea. ·B1a1r Sur. Thence with
                              .lo acres, be:in~ Survey JTo. 148?,
                                                    on the waters of M~aquite Cr at tributary o! ·the Lamp~as 'River,
                                                ·· about 15-?l- miles Jf 16 E from· Burnet by virtue of an a.ffidavit
                                                   made before the Clerk of· the County Court or nurnet Cnunty,
                      .                            December 29~h. 1897, under 'lll.n Act for the benefit or Actual

                        :... .
                          .,
                      \

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                                                                                    .,
                                                                                   .. ~; ~-=.... . . ~ .\ .     ··""· .   -~   .
                                                            ···.....   ~: ·.   :   ..,'" . ~ ': :    ..-:; ·.

0
                    ·.f. '

                                                Occupants o~ Pub1ic lands. approved May 26th, 1873•             Be6~n1nc
                                                a~ at md . $82 ·vrs. N 19 w . rrom a~po1nt.3bO vrs ·N 71 E ~rom the
                                          ;, •.N · w r.or. , of. the Bu~ McCoy a1,1r; "b N 19 . W 9$0 'VT& a at md
                                                whenae a . L 0 ~rs N 4?.~ W 250.vrs .a Mesqu1te,bra Si E 162 vrs.
                                          · :·;·Thanca s '71 w 200 · vrs a branch 9$0 vrs a at . md whence a L. 0 •
                                        .'           N 9t E. 216! vr.e do brs ' N 8-J/4 E 219-?t vrs.     'J'h S l.9 E
                                        ·            vrs a branch 950 vr.a o at md,      'l'h N 7.1 E 475 vrs a branch
                                                     vrs to the pl.aca o~ bo~inn'l.ng, bear1nr,s rnar!ced H.
                                                                   Out or the Thos. w. D1a1r             described as

                                :i~1l~~~~§~~~t!
                                                     ~~~---~A~~~~~!i~M:·;t~~z~:· ·-·-
                                                     ~                            ...•·!·~
                                                                                                                                           .•oert.a:tn ..tract:-~. ·· _..,.•.:?
                                                                                                                                                                                   .-
                                   ~:                                                                                                  Burnet.:coun10y, .. , ·
                                                                                                                           ·-···--,in · the ..name ·.of
                                                                                                                                 1t . be~g aria          or
                                                                                                                                                          ' the
                                                            .· · or1g~a1 corners o.t . aa                . or1e;1na1. survey from which·...,_.. L1ve OAk
                                                                   braN 50 w 7$ vra. · Thence s 71 w· 1900 vra to a aeone pi1e rrom
                                                                  ·which a Live Oak bra N . SO W 75'vrs.                  Thence N 19 W with George
                                                                    Aurt1er•a 11ne 600 ·vrs to a rock md on T. W. Hart's South line
                                                                    rrom Which an E1m bra · s 7 W 51 vra•                 Th N 71 E a t 100 ~a the
                                                                    Creek, and ot 16oo· vrs. T. W, Hart's s. E. Cor., from which a
                                                                   Me a quite bra N 35 W 20 vrs. and El.JII bra lf 74 E 50 vra.                          '1'h S
                                                                   19 E to Mesquite Cr and w1th the meanders or the Creek' ·dowr. to
                                                                    wbe:re the Charl.ea Wilson South 11.ne crosses the•creek and
                                                     .._.           thence South 19 E. with said Wilson 11.na 400 vra. to the cor or
                                              :·, · ·               the same·•          'l'he. S"l9 •E' with the' original l.ina 400 vra to the
                                           '- · ·.... ·l .... '=beg1nn1ng·' cor. • · c·onta1nins two hundred' acres, more or less,
                                                          '         SAVE ·AND EXC~T 40 acrea • more·· il!r 'l.esa • out: or this ·Survey, the
                                                                    said 40 acres being as rollowaz · Bas at · theN W cor. o£ this
                                                                   -Sur. Th about 100 ~arda to and across Mesquite Cr.                             Th along
                    iiior:--    .· .•., ..,_.,                       theN _l,1ne o;r ~1e.aqu~te .cr • .,.to a.~a,..lt?-U~.t;&,fit..!'--l!hoq.t~~9·-f. eet;. ..b,e1ov~.,.. ~ ... ~ ,.
                    ~-·,·."';! ·~· . ;;,.--"'""'!"p.lilha•·:rook ~al.l.~n • eaii! ' )Jesqu1 ta"'"Cr·•.,..., Thence -across"lr'e sq1.11 te Cr and
                                                         . ~_· ..s 19 E "about>"·J.OO 'vrs ' to;·thtt ·or1~1na:l S boundary l.ine or this
                                                     • , . sl.l:rvey, wh1ch l.ost ~amed 40 acres ~ or l.asa ,is hereby :reserved
                                                        · · .. rrom the . proviaiona " of ..this dead.                 •·     ..     , '   _ , ·
                                                            1
                                                              - ·:           AI.SO,-' SAVEAND'EXCEPT, 10 acres 1 more or l.eas 1 out of the
                                                                     above n~~med 'l'hoa. 'Blair Sur> as c.onveyed by Ali.ca 111. 9erry and
                                                                    G. L. G~avea and wife, M. H. Graves 'to R. B. F. Berry by deed

0                                                                    dated~· J.4, 1909 1 recorded in·Vo1 • . 4B, pg. '95, Deed Recorda
                                                                     'Burnet County, Texas, descr111ed os .to1lowa:
                                                                     piece, parcel or tract of land out of the Thomas B~air Sur on
                                                                     llleaquite Cr 1n '3urnct County, Texas, descri'bed as 1'oll.ows:
                                                                      a part of the 1.60 acres. of the aaid Thomas B1air Sur conveyed
                                                                                                                                        A1l th,.t certain

                                                                       to Al.1ce M. ~erry by J , w. Bl.Ri.r and wl.te by their deed dated
                                                                      l.t ..y 29th, l.903, rooordad in Vol., 40, pn pagea 146-13, of the                             "
                                                                      Dead Recorda of Bu:rnet Count.y, Texas, to which reference is
                                                                      here made and the said part. herein conveyed ls a11 of the
                         .                                             same Y tho a cove d ascribed prem:lses, toGet'1or with
                                            al.l. and sirtr,\ll.ar, tne ri.,;hts and appurtenances thereto i.n anywi sa
                                            bal.~i~unto the sa\d Chnrl.ea Otto Wade and w~fo Edel.l Sy1vestr~
                                      •• Wlb>:?ft~J!II 0 ilfta#olii!l~iPFSJI1W.er·~!>~~~.A•zo~7-':"l;l mdl-our~.~~-'!_S,
                                      :.    oiU"'·he.irs, ' exeoutors and administrators, to "Ne.rrant · and For·ever               ·
                                           Detend.. a1l. and singu1ar the said premises unto · the Sa.id Charl.es Otto
                                         ·wade and wif'e Ede11 Sylvester' Wade, their heirs and assi~ns against
                                            every person whomsoever 1awtu1ly cl.almine, or to claim the oame, or
                                            any port thernof'.
                                                · But i t 1.s oxpress1y ~eed and st1pul.ated that the Vendor's Lien
                                             and supar1.cr t1.t1o are retained o~ninot the obnve deecrib~d propert7
                                            premises •nd imprnvementa, in ravor or Manuel. Dol.bert Sy~veoter until.
                                            the above described note and e11 interest thereon are .f'ull.y paid
                                             a~cord\.T1fl to its .race and tenor, o.r.rect and reading, ••hen l.hl.a deed
                                             sha11 bename abso1ute.
                                                   \'lit ,·•as ~;: our hands . at Lampasas, 'l'e,.;ns, this ~st day of :J'.nual"i1•
                                             A. D. 1.9S2·

                     t ·-,: . .. ..
                     t: -

0                                          -t¢ehl'je.~~a
                                          THE STA'.l'E OP Tl!!XAS    I
                                                                                      a,~- ?Ka.z-~_
                                           COUllTY   OF'~
                                         Tlj),l'ore nc, t.he undor.,±snod author!.ty. " UntRry Publ. ~. r. ·t n Rnd
                                   roriCJIIv ~ Cn~~nt.y, 'l'n~ac, nn t.hl.o J"Cr>rcd 1!:1nuel
                                   Dnl.bart S~lvoctor. nnd J.fil11e .">:•1Vo3ter. his w.'. .f'c, hoth !mo,-m
                                    to !110 to he the r>crsnn!J '!ll"tose nmne A are s ubscr:1 bed to the r: n:re-
                                    no1~ instrument, tondacl:!!Cl\ted
                     ~.,, _         the s ama f'or the purpGisea and consideration ther,.in expressed, l!.nd
                     ~... ........ tfle s a~d Jltil.lie Syl.vester, wire of' the said Manuel. DeJ.?ert !;:•lva!Ste:r
                     ~,.~ ..-,;harlng..··bee,D-• examined b:y me privily and apart l"rom her husband • and
                                   hllvin~; hhe 81\1'18 ful.l.y eXJ") B1ned -r,o her, :~he, tl"te · snid t!. i l li., !'>7l.VP.ater
                                    na' cnowlodred !!l\ch l nnt.rui'\P.nt tn he her net and deed • and Aha de-
                                  · clared thot ohe . had wi111n•: l -;t si-;nnd the snme for the pnr••o::~es and
                                    con:~!.de:rot.ton therln ex'!)res:aed, and thnt ohe dtd nnt. wt:;h             to re-
                                    trar.t i t .
                                              flT.VEiT ""!DEn UY JTJ\liD AltO SEAL OJi' Ol'Flr:E, This     26th   cloy of January
                                           A. D. 1952 •

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0
                                        TRE STATE OF TEXAS
                                        COUNTY OF           ifZ.,. ..
                                           . De.f'e~re me, the. undersi~!}ed author1ty, a l~Qtary Pu~lic 1.n and ror
                                               !?cl
                    .,.;.
                                        ;tiS             1 County, Texas, on thi:J dRy !"er:~onally appeared Chrit!•, n notary Puhl!.,. •n and f'n:-o
                                                               'J:'o:r.ns, on this day personnll.:_. appe::>••nc'l ,'\us tin Jn. Butler
                                          on Lenora s:-lvestar ::IL\tler. h:l.s w1.1'e bot;h !:novln to 11\0 to be .th!l.
                                        ·-persons whoee nemes are subscribed tn the roreaoin~ instru~e~t.
                                          and acknowled'?=ed to me that tltey each executed the same for the pu:::--
                                          poeee and consideration ther~!n expressed, end the said ~enora
                                          Sylveate~ fhttl.er, wi1'e of the :J»id ,1\ustin U. "\utler, havin."; been
                                          examined by me priv:l.ly and apart 1'rom h~r husband• and hav:l.n~ the
                                          SliJIHt ;Cul.ly explained to her. she, the all.:l.d Lenora Syl.vester Antler
                                          acltni)Yil.adt""ed BL\ch instrument to bo her set and dned, and ohe de-

0                                         cliU'od that she hnd Ylill.in:-;ly signod the same for the purposes find
                                          cnnsideration therein expressed, and that she did not wish to re-
                                          tract :l.t.
                                               OIVT::\f    ~''·!D~   }.~   111\110 A ~10 S11:A!. OI•' OF'J.OiCr.;,      Th'ls     20th       cla7 of 'Januar,. · .
                                         Ao P. l';l;2.

                                                                                                           ~;...
                                                                                      iJ.   v, IIAMM1rrr
                                                                                               Notary
                                         TAE STATE. OF TE"..CAS              I
                     •         ·..•: .;,i....,COUIITTY'   OF~.,....          I
                                        :-# ne1'oro          bhe undoro:t .• :ned J\1\thor:l.ty, a 1'Jotnry Pl: 1., l:l.c in ancl ror
                                                            m~,
                                        ~~County, Te:oo:oa, on this day personal.l~r ap'!"'eared Ivan 111. S-:.e,.,t\rt,
                                          an    ~C'Irein ~yl.vAstar Stewnll:'t. h:l.e wit'e hoth 1tnn"'" \:.o me         to be the
                                          persona Tthn'le nn,es are !!1lb!'lc··tbe., to the roli:'P.~o:l.n!:: ins truMer.t •
                                        · and acknowledr,od to me th~t thny each exocutad the ~nme ror the pur-
                                          poses ond ce~naiderot: 1 ,n therein e:-:prr::J:lod, anti the s&.!.d t::ore:l.n
                                          S:","l.vostcr ~tewart. wit'e o! tho naic1 Ivan M. Sto,Rrt, havin.r-; been
                                          exorn1ned tty me pr1 vlly and apart !rom hat> husblmd, and hav i. n~ tho
                                          oame fully explained to her, sho, the sa~d Core:l.n Sylvaster Stewart
                                          nclmowledP.ed such instrument to be her Ret nnd deed, and she
                                          dflcla;r'td that she hnd YlilU.n--;l.::r si ·-nod tho same for the purpooes
                                          lind conoideretion therein exprcaacd, and that she did not ~•ieh o;o
                                          retract i t .
                                               GIVEH lTP'OETI UY HAND J\ND ST~AL OF OFFICE, T h : r s ay of -JanU&J'7'•
                                         A. D.        1952.                                                                                            /
                                                                                            OI.V.~                 S}??.. ~---~ -- ,~

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                                                                                   •   j

                                                                                            ·~~   ..
                                  .·THE STATE OP TEXAS.                                     •·

                                   ~OUR'l'Y . ~P ~'f-          ...   I :       .. ·':; :     · _ .· . ,    ..   .
                                        ~~ .~e,          the undersigned authority, a Nota~ Pub11c, in and
                                   1'or              county, Texas, on t.hi.s day persona1l.y appeared 011bert
                                   Phi. 1.1     • - and o. Zftl.l. Syl.vester Phil.l.1po 1 ·hi.s \'li1'e, both lmown to
                                   -    •n 'lfAI. . . . p•JI!PD't ;"~?,.,'!!.._'?~ ~~~J1.~.Ji_\)_...,.J OrH9iJ'!.E;. ,
                                   i.ns~r~~tl;-7..and· ~olaiow'IirlfgildtO me' ·"tli1lt..--th"'j-"'"eac1i""'ex~.ou:t._d'"tli.e~aii:'Yie
                                  ~ :f'or
                                       -the ·purposes· and considera-tion there1n expressed, and the saifo
                                   o. zall. Sylveater Ph11l.ips, wire or the said Gil.bert Phi111ps, ·
                                  hav1nB been examined by me privily and apart ·rrom her husband, and
                                  having the same fa1ly explained to her, she, the said o. Zel.l
                                   Sylvester Phill.ipa acknowl.e~~ed ~uch instrument to be hor act and
                                   deed, and she decl.sred that aha had w1l11n~l.y signed the same ror
                                  -the purposes and consideration therein expressed, and that she did
                                   not wish to retract it.
                                            cn:VElT' TTJfDEm L'IY HllHD        AND SEAL            OF OFFICE, This     26t;hday of .f.li.m:iar;r ·•,
                                   A. Do l.C}S2.
                                                                               ~"·~                    ~                          ~
                                                                                           ~otaryz;mc:J9~                           Texas
                                   TlfE STA'l'E OF TEXAS

                                   COUWl'Y OF           ~
                                                                                                                a
                    :)'!--:,: -~ :f'or
                    :·   ..         Del.bert;
                                                •r ·
                                             .~~me,                  the undera:iGn!d atJ.'bhori.ty,                 Notar-y Publ.i.c, i.n and .
                                                         !i'.lofDtxLd~g~•• • -.!2~ - 1i~1s · day·peraonal.l.-;r appeared Manuel.
                                                   Sy:Lvlt~•:f'T-!tftdllpefttt•n'e executor of the wi. ~l.s and estates                            of

0
                                   A. H. Sylvester-ana wite Emma Sy1vester, known to me to be the person
                                    whose name is subscribed to the foree;oibg 1nstr~,mant, and aclmow1edged
                                    to me tho~ he executed tho aame for tho purposes and considerati.o~
                                    expressed therein, and in tho capacity therein stated.
                                                  r.!VEJJ lJlTDEFI J.iY ll.AJ-TD AliD SEAL OF OFF.ICE, This                  2othdny n:t'      Janua~.-,
                                    A.D. l.$2•

                                                                                  ••. ...._,oterpo~y,;aa  ~4~
                                     TIIF.    ST~'l"~   OF Tl::XII.S       I
                                     CO'Ul'JTY OF       ~                  I
                                         ......,aorore me, the undersigned authority, a l'Totary Pub11c, in o;and
                    il.; __.- .•. tor~¥ .... County, Texas, an th:is da-y personal.l.y appeared Chester
                    wft~·i6nn,aoa: , yl.v~st~2", .'' 1na.1v.1.dua~l.;y · and .. as :independent executor . or the w 11l.a
                                  nnd ' ost~t<'!c r"lt 11.. H. !\j1vezter IVI.d w!:t'e I!:rnrna S7-•1voste,.., 1 OJ•Fir.E, Th1a .26.t.l>_dGy at: January . •,
                      A. D.   ~953.

                                                                                                      /-t_.
                                                                                             ·';:     .,..">   ..:: \

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·.

                              : .'\..,ES

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     Page 85 of 86
 1                         C E R T I F I C A T E

 2       STATE OF TEXAS

 3       COUNTY OF BURNET

 4               I, VICKI K. KANEWSKE, Official Court Reporter in

 5       and for the County Court at Law of Burnet, Burnet

 6       County, State of Texas, do hereby certify that the above

 7       and foregoing contains a true and correct transcription

 8       of all portions of evidence and other proceedings

 9       requested by counsel to be included in this volume of

10       the Reporter's Record in the above-styled and numbered

11       cause, all of which occurred in open court or in

12       chambers and were reported by me.

13                I further certify that this Reporter's Record of

14       the proceedings truly and correctly reflects the

15       exhibits, if any, offered by the respective parties.

16               I further certify that the total cost for the

17       preparation of this Reporter's Record is $834 and has

18       been paid for by Mr. Don Richie, Attorney at Law.

19               GIVEN UNDER MY HAND AND SEAL OF OFFICE this the 3rd

20       day of March, 2015.

21                            /s/Vicki K. Kanewske

22       VICKI K. KANEWSKE, TEXAS CSR NO: 2159; EXPIRES: 12-31-16

23          Official Court Reporter, Burnet County Court at Law

24                 220 S. Pierce, Burnet, Texas    78611

25       512-715-5244; Fax: 512-715-5226; Email Vkaykan@live.com

                                                                     3
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                         03-15-00100-CV

 1    Supplemental REPORTER'S      RECORD

 2                    VOLUME 2 OF 6 VOLUMES
                                                            FILED IN
                                                     3rd COURT OF APPEALS
 3   CAUSE NO:     P9127/COURT OF APPEALS   NO: 03-15-00100-CV
                                                         AUSTIN, TEXAS
                                                     5/14/2015 2:20:39 PM
 4   IN THE MATTER OF          )            IN THE COUNTY COURT
                                                       JEFFREY D. KYLE
                                                             Clerk
 5   THE ESTATE OF             )            AT LAW

 6   EDELL WADE                )            BURNET COUNTY, TEXAS

 7

 8

 9

10

11

12

13                 EXCERPT TRIAL TESTIMONY OF

14                NANCY BURNS AND MICHAEL MARTIN

15

16

17

18

19              On the 30th day of September, 2014, the

20   following proceedings came on to be held in the

21   above-titled and numbered cause before the HONORABLE

22   RANDY SAVAGE, Judge presiding, held in Burnet, Burnet

23   County, Texas.

24              Proceedings reported by computerized stenotype

25   machine.

                                                                   1
 1                   A P P E A R A N C E S

 2   RICHIE & GUERINGER, P.C.

 3   100 Congress Avenue, Suite 1750

 4   Austin, Texas 78701

 5   512-236-9220

 6         BY:   MR. DON RICHIE

 7               MS. EMILY SEIKEL

 8         APPEARING ON BEHALF OF JAMES(BUD)WADE

 9

10   LAW OFFICE OF DON E. WALDEN

11   7200 North Mopac, Suite 300

12   Austin, Texas 78731

13   512-349-9595

14         BY:   MR. DON E. WALDEN

15         APPEARING ON BEHALF OF NANCY BURNS

16

17   GRAVES DOUGHERTY HEARON & MOODY

18   401 Congress Avenue, Suite 2200

19   Austin, Texas 78701

20   512-480-5600

21         BY:   MS. KATHRYN ALLEN

22   AND

23

24

25

                                                   2
 1               A P P E A R A N C E S   C O N T ' D

 2   STUBBS LAW OFFICE, PLLC

 3   202 N. Porter Street

 4   Lampasas, Texas 76550

 5   512-556-8970

 6       BY:     MR. EVAN STUBBS

 7       APPEARING ON BEHALF OF JOHNNY WADE AND AMANDA

 8       WADE, INDIVIDUALLY

 9

10   HILL, DUCLOUX, CARNES & DE LA GARZA

11   400 West 15th Street

12   Suite 808

13   Austin, Texas 78701

14   512-474-7054

15       BY:     MR. CLAUDE DUCLOUX

16       APPEARING ON BEHALF OF AMANDA WADE, EXECUTOR

17

18

19

20

21

22

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24

25

                                                         3
 1                      REPORTER'S RECORD

 2                    VOLUME 2 OF 6 VOLUMES

 3                     CHRONOLOGICAL INDEX

 4   PLAINTIFF'S WITNESSES:

 5   NAME:               Dir   Cross    Redir     Recross   Vol

 6   Nancy Burns               7,35                         2

 7   Michael Martin            78,109   115,129              2

 8   DEFENDANT'S WITNESSES:

 9   NAME:              Dir    Cross    Redir     Recross   Vol

10

11   Court Reporter's Certificate               Page 131    2

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                                                                  4
 1                      REPORTER'S RECORD

 2                    VOLUME 2 OF 6 VOLUMES

 3                     ALPHABETICAL INDEX

 4   WITNESSES:             Dir    Cross    Redir     Recross   Vol

 5   Nancy Burns                   7,35                          2

 6   Michael Martin               78,109    115,129             2

 7

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                                                                      5
 1                           REPORTER'S RECORD

 2                       VOLUME 2 OF 6 VOLUMES

 3                            EXHIBIT INDEX

 4   PLAINTIFF'S EXHIBITS:

 5   No:   Description                             Offered   Rec'd   Vol

 6   87    Safe deposit box lease                  127       127     2

 7

 8   DEFENDANT'S EXHIBITS:

 9   No:   Description                             Offered   Rec'd   Vol

10   2     Copy of check                           26        26      2

11   3     Handwritten will                        36        37      2

12   4     Copies of bank information              44        44      2

13   5     Copies of checks to Nancy               77        77      2

14   6     Invoices from Bill & Nancy              77        77      2

15   7     Receipts from Edell Wade                77        77      2

16   8     Copies of checks to Weldon              110       110     2

17   9     order approving first inventory         111       111     2

18   10    Order approving 1st amended inventory   111       111     2

19

20

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22

23

24

25

                                                                           6
 1                        ******

 2                       MICHAEL MARTIN

 3   Having been previously sworn, testified as follows:

 4                      CROSS EXAMINATION

 5   BY MR. STUBBS:

 6       Q      Mr. Martin, you said you've been practicing

 7   law for 44 years; is that right?

 8       A      Well, I would say 42 probably.

 9       Q      And during that time frame how many files do

10   you think you've dealt with?

11       A      Several thousand of them, I'm sure.

12       Q      I mean, by several thousand, we're talking 16,

13   17, 18,000, something like that?

14       A      I would guess.

15       Q      Okay.   How many people worked for you when it

16   was you and Pat Millican when it was Martin & Millican?

17       A      We had three secretaries.

18       Q      And did you also have a title company?

19       A      Yes.

20       Q      Were there also employees at the title

21   company?

22       A      Like two or three normally there.

23       Q      But how is it that you don't remember every

24   single conversation that you've had with everybody who

25   came in your office?

                                                                 78
 1       A     I'm getting awful old.

 2       Q     My point is on a regular week did you deal

 3   with one file individually and that was it, or did you

 4   have a busy practice?

 5       A     I was just a typical small town practitioner

 6   doing everything that came in the door, and we were

 7   busy.

 8       Q     And I think from all of this three or four

 9   hours of testimony it all really boils down to one

10   question, and that is were you in cahoots with Johnny

11   and Amanda Wade to somehow try to take money or take

12   land or take advantage of Edell Wade?

13       A     No.

14       Q     In your 42 years of practice, were you ever

15   sanctioned by the State Bar for anything unethical?

16       A     No.

17       Q     And obviously in 42 years of practice if you

18   had done something such as trying to work with one

19   client to embezzle something or take advantage of

20   another client, that would be where the complaint would

21   go; wouldn't it?

22                   MR. RICHIE:   Your Honor, I'm going to

23   object.   We've not sued Mr. Martin or suggested that he

24   embezzled anything.     It's just irrelevant.

25                   MR. STUBBS:   Well, they spent three hours

                                                              79
 1   on him trying to --

 2                 THE COURT:   I'm going to overrule the

 3   objection and let him answer.

 4       A    Could you repeat that?

 5       Q    (By Mr. Stubbs)   In your 42 years of practice,

 6   had you ever tried to conspire with a client to embezzle

 7   or take advantage of some other client, the

 8   State Bar would be where that complaint would be filed?

 9       A    Correct.

10       Q    And in your 42 years you have never been

11   sanctioned for anything unethical, correct?

12       A    That's correct.

13       Q    Now, if we start with this $80,000 in the safe

14   deposit box, are you familiar with the way certain

15   accounts at institutions can be held?

16       A    I think so.

17       Q    And by that what I'm getting at is you can

18   have an account that is solely owned by one person, it

19   can be held as a pay on death beneficiary or it can be

20   held with the rights of survivorship?

21       A    Correct.

22       Q    And in the event of this safe deposit box that

23   is at issue, do you know how it was held?

24       A    No, I don't.

25       Q    Okay.   If it were held with a right of

                                                              80
 1   survivorship to Johnny Wade, then would there be any

 2   obligation for him to turn that money over as an estate

 3   asset?

 4       A    No.

 5       Q    So with that right of survivorship, then upon

 6   Edell's passing the contents of that safe deposit box

 7   became his sole property; didn't it?

 8       A    I would agree.

 9       Q    If the safe deposit box was held as joint

10   tenants can you tell this jury what that means?

11       A    I would call it co-ownership.     Two persons

12   having equal ownership of one account.

13       Q    So was that the -- would that have the same

14   effect upon her passing if it were joint tenants?

15       A    No.     If it's not with survivorship I'd say no.

16       Q    But if it did have the right of survivorship

17   it would be the same?

18       A    It would.

19       Q    Okay.     Now, recently you were asked some

20   questions about a life estate and whether or not a life

21   estate is enforceable and so forth.    And I believe that

22   Mr. Richie showed you what's been marked as Plaintiff's

23   Exhibit No. 5.    Do you still have that up there?

24       A    I do.

25       Q    And under number 2, does that seem to be clear

                                                              81
 1   to you that there was an intention for Edell Wade to

 2   have a right of survivor -- I'm sorry.   To have a life

 3   estate or effectively the ability to remain in her home

 4   until she passed away?

 5       A    Yes.

 6       Q    Even though she was selling, I'm going to say

 7   the ranch, this appears to show that there was a meeting

 8   of the minds that she could stay in her house until she

 9   passed away?

10       A    Yes.

11       Q    Now, do you know where she lived when she

12   passed away?

13       A    No, I don't.

14       Q    Are you aware of any time when Johnny or

15   Amanda Wade tried to force her off of that property?

16       A    No.

17       Q    If the evidence in this case showed that she

18   actually passed away in her bedroom in her house and was

19   Star Flighted back simply so she could, would that

20   surprise you?

21       A    No.

22       Q    So all this question about whether it was a

23   life estate or not, if she never was asked to leave her

24   property and in fact passed away in her own bedroom,

25   it's really just smoke and mirrors; isn't it?

                                                               82
 1       A    I would think.

 2       Q    You were asked a bunch of questions about

 3   various documents and whatnot, and the effect of that

 4   was to make some implication that Amanda Wade abused the

 5   power of attorney that she held for Edell Wade.    Do you

 6   recall those questions?

 7       A    I do.

 8       Q    To the best of your knowledge did she ever use

 9   that power of attorney in any way?

10       A    I wouldn't have any way of knowing.   Nothing

11   came to my attention.

12       Q    Well, in the modification that Mr. Richie

13   would ask you all these questions about, she didn't go

14   in and sign it on behalf of Edell wade; did she?

15       A    Oh, no.

16       Q    On the power of attorney, the various power of

17   attorney documents, she never went in and signed

18   granting someone else somehow or on behalf of Edell

19   Wade; did she?

20       A    No.

21       Q    As far as going back to the question about the

22   life estate, you were kind of led into questions to

23   imply that Johnny Wade or Amanda Wade could have then

24   sold that ranch but in that let's just assume that

25   Johnny or Amanda or both were trying to sell that ranch

                                                              83
 1   while Edell were still living, Johnny and Amanda would

 2   have been aware that there was this agreement for a life

 3   estate, correct?

 4       A       Correct.

 5       Q       So they could not have signed off on a

 6   contract saying there were no liens, no tenants and so

 7   forth on the property, could they, to enter into a

 8   contract to sell it?

 9       A       Well, with Mrs. Wade living in her house,

10   practically I can't see how you could do that.

11       Q       So again just smoke and mirrors?

12       A       I would agree.

13       Q       In your representation of Edell Wade in doing

14   her will, power of attorney, HIPAA documents and the

15   modification, was it ever your understanding that you

16   were representing anyone other than Edell Wade?

17       A       No.

18       Q       Now, I don't know if Mr. Richie has ever

19   practiced law in a small town, but you said at the

20   beginning that you have represented whatever walks in

21   the door.    You mentioned criminal cases for instance.

22   So in representing criminal cases you have somebody

23   that's 17, 18 years old.     Is it odd for them to come in

24   with a relative?

25       A       No.

                                                                 84
 1       Q       Is it odd for you to put the contact

 2   information for that relative in your file?

 3       A       Certainly not.

 4       Q       Is it odd for you to send the bill to the

 5   relative?

 6       A       No.

 7       Q       Is it odd for you to send correspondence to

 8   the relative?

 9       A       No.   Especially criminals frequently don't

10   have an address you can use anyway.

11       Q       Sure.   Now, does any of that change who your

12   actual client is?

13       A       No.

14       Q       So just because you're talking to a parent or

15   a grandparent and you're calling the parent or the

16   grandparent and you're sending the correspondence to the

17   parent or the grandparent, your client is still the kid,

18   right?

19       A       Of course.

20       Q       And isn't that similar to a situation to where

21   you may be doing work for someone who is older?

22       A       Very common to be in that situation.

23       Q       So if we're dealing with someone who's 80

24   years old or above and they live on the same property

25   with the child, or a grandchild for that matter, would

                                                                 85
 1   it be uncommon for you to have that child or

 2   grandchild's contact information in your file?

 3       A    No.

 4       Q    Would it be odd for you to deliver the

 5   documents to the child or grandchild?

 6       A    No.

 7       Q    Would it be odd for you to contact or have

 8   communications with that child or grandchild?

 9       A    No.

10       Q    Would it be odd for you to send the bill to

11   the child or grandchild?

12       A    No.

13       Q    Does any of that change the fact that the

14   older person involved is actually your client?

15       A    Not in my opinion.

16       Q    And at the end of the day, and upon his

17   question and you agreed, that you as the attorney had a

18   fiduciary duty to Edell Wade?

19       A    Yes.

20       Q    And can you explain to this jury what that

21   means, what your duty was for Edell Wade?

22       A    Well, I think I owed her a duty to look out

23   for her business just plainly stated, and, you know, if

24   I thought someone was trying to take advantage of her,

25   I think I would have needed to have told her and would

                                                              86
 1   have.

 2       Q    In this instance did you ever tell her that

 3   you thought someone was trying to take advantage of her?

 4       A    No.

 5       Q    Now, as far as all these documents and all

 6   these questions about how we came up with the number and

 7   where the interest came from or whatnot, your file

 8   clearly shows that you had communication with Lori

 9   Graham, correct?

10       A    Right.

11       Q    And in your file I believe you have some line

12   items where you say, Communication with client.     And

13   then separate from that you have some lines that say,

14   Communication with Amanda.   Right?

15       A    Yes.

16       Q    That distinction of having lines that say,

17   Communication with client, versus lines that say,

18   Communication with Amanda, would show that you never

19   viewed Amanda as your client in that case, right?

20       A    True.

21       Q    And in your drafting of the documents does it

22   really matter who communicates numbers to you?

23       A    No.    It looked like to me that it was kind of

24   a joint project so I wasn't particularly concerned

25   knowing that they were going to get to read it over and

                                                                87
 1   come sign it, and if either side didn't like it they had

 2   every opportunity to say so.

 3       Q       Now, obviously you can't represent both sides

 4   in that, right?

 5       A       Correct.

 6       Q       And were you ever representing both sides?

 7       A       I felt like I was representing Edell Wade.

 8       Q       Okay.   Now, in your 42 years of practice how

 9   odd is it for an older person to just flat give property

10   to a kid?

11       A       It's quite common.

12       Q       And so in fact, I mean the numbers really

13   don't even matter, do they?

14       A       Well, I could tell they had a close enough

15   relationship that I didn't think anyone was trying to

16   get it down to the gnat's ear and would have been

17   surprised if they were.     I really didn't know what was

18   going on.    It changed two or three times.   I really

19   didn't know and hoped that with the accountant they

20   would work it out to where everybody was happy and the

21   IRS hopefully would be happy.

22       Q       I'm sorry.   Go ahead.

23       A       And I didn't see any particular reason for me

24   to get into that discussion especially in a family deal.

25   I didn't imagine they wanted my input.

                                                                 88
 1       Q       Is your job as a lawyer, when somebody comes

 2   into your office, is your job to tell people what other

 3   people normally do or is your job to do what they want?

 4       A       I think it's to do what they want.    Nobody

 5   asked me should they do it.      They came and said they're

 6   doing it.

 7       Q       Have you ever drafted a will that left

 8   property to a charity?

 9       A       Sure.

10       Q       Have you ever drafted a will that left

11   property to a charity or excluded a child?

12       A       Yes.

13       Q       Is it your job to tell them they can't exclude

14   a child?

15       A       No.

16       Q       Is it your job to tell them they need to leave

17   their property to one child or another?

18       A       No.

19       Q       Is it your job to tell them that they need to

20   charge interest or that they need to not reduce

21   principal?

22       A       No.    And the only reason I would discuss the

23   interest is like I would want them to be aware that the

24   IRS may penalize them.

25       Q       Right.    And then you were asked questions

                                                                  89
 1   about 1099s and you were asked questions about estate

 2   tax returns and those sorts of things.     Do you generally

 3   send out 1099s?

 4       A    I never do.

 5       Q    Never have?

 6       A    Never.

 7       Q    Do you generally file estate tax returns?

 8       A    We did file estate tax returns, yes.

 9       Q    Is that something that you require any time

10   you have some sort of transaction that might involve an

11   estate tax return?

12       A    Is what required?

13       Q    Well, what I'm saying is if somebody comes in

14   and they want to do any type of transaction, I mean,

15   you're not under any duty to file their estate tax

16   return; are you?

17       A    Oh, no.

18       Q    Okay.     Ultimately that decision is left up to

19   the client, isn't it; whether or not they file an estate

20   tax return?

21       A    Well, yeah.     I mean, you may be obligated by

22   law to file one but whether they actually do it, they

23   don't want to do it, that's kind of their business.

24       Q    Right.     That's my point.   You're not, as the

25   attorney, obligated to do anything?

                                                                 90
 1       A     No.

 2       Q     And so sometimes you have people who you tell

 3   them this may be an estate tax or a gift tax event, but

 4   ultimately they're the ones who decide whether or not

 5   they're going to file a return?

 6       A     Correct.

 7       Q     And if we pare this down, I mean, you worked

 8   for Edell Wade starting back in 2007, correct?

 9       A     Correct.

10       Q     So you doing the modification wasn't like the

11   first time you ever met her, right?

12       A     No.

13       Q     And I believe you said earlier she was clearly

14   lucid?

15       A     Yes.

16       Q     Or very lucid or something along those lines?

17       A     Yes, sir.

18       Q     Didn't have any concerns that she was under

19   duress?

20       A     No.

21       Q     Didn't have any concerns that she was out of

22   her right mind?

23       A     Not at all.

24       Q     Didn't have any concerns that she wasn't doing

25   exactly what she wanted to do?

                                                               91
 1       A      No concern at all.

 2       Q      In fact, if you did, based on what you told

 3   this jury about your fiduciary duty you wouldn't have

 4   participated; would you?

 5       A      That's true.

 6       Q      You had an active practice, right?

 7       A      I did.

 8       Q      Did you need her $200 or $300 to make ends

 9   meet?

10       A      No.    And certainly don't want to get involved

11   in a squabble like that for some pittance.

12       Q      So any of your communications, whether they

13   were with Lori Graham, Amanda Wade, Edell Wade, Johnny

14   Wade, no matter who relayed the information you always

15   felt like what you were doing was what Edell wanted,

16   correct?

17       A      That's correct.

18       Q      Because she was your client?

19       A      Right.

20       Q      Now, you were asked some questions about

21   paragraph 25 of the prior power of attorney that Edell

22   gave to Nancy, and I believe it had something about

23   talking to some of the other siblings?

24       A      Yes.

25       Q      Now, at the time that was entered Johnny and

                                                                  92
 1   Amanda still lived in California; didn't they?

 2       A    I really don't know.

 3       Q    If I --

 4       A    I assume so.    My vague recollection of when

 5   they came back I believe it was right.

 6       Q    Couldn't you also gain from that that Edell

 7   really didn't trust Nancy and that she wanted her to

 8   communicate with the others because she didn't have full

 9   trust in her?

10                   MR. RICHIE:    Your Honor, objection.

11   Calls for speculation.

12                   THE COURT:    If you know from discussions

13   with your client you may answer that question.      If you

14   don't, then I'll sustain the objection.

15       A    I don't have any knowledge of that.

16                   THE COURT:    All right.   I'll sustain the

17   objection.

18       Q    (By Mr. Stubbs)      As far as the sale of the

19   ranch is it your understanding that Edell was the owner

20   of that property whenever the sale took place?

21       A    Yes.

22       Q    She wasn't a co-owner; was she?

23       A    Not to my knowledge.

24       Q    And at that time did any of her kids have any

25   legal interest in that property?

                                                                   93
 1       A       I don't believe so.

 2       Q       So had she, instead of selling it to one of

 3   her kids and keeping it in the family, had she decided

 4   to sell it to the neighbor, could she have done that?

 5       A       Sure.

 6       Q       Did she have to get permission from her kids?

 7       A       No.

 8       Q       Did she have to tell the kids?

 9       A       No.

10       Q       Did the kids have any say in what the terms

11   would be?

12       A       No.

13       Q       She could have sold it for cash.    She could

14   have sold it on a note.       She could have just given it to

15   the neighbor; couldn't she?

16       A       True.

17       Q       You were asked some questions about the

18   various powers of attorney and one was filed and one

19   wasn't filed, whatnot.    There's no legal requirement

20   that a power of attorney be filed; is there?

21       A       That's correct.

22       Q       And you can file one of record if you choose

23   to, but you don't have to, correct?

24       A       Right.

25       Q       All these questions about whether or not you

                                                                 94
 1   communicated directly with Edell while the documents

 2   were being proven up, you ultimately were perfectly

 3   comfortable that she knew what the documents said, she

 4   knew what the documents meant and it was what she wanted

 5   to do when she signed them, correct?

 6       A    That's true.

 7       Q    Now, Mr. Richie made a big deal about, Well, I

 8   just got this file today and so forth.   I believe that

 9   he requested to take your deposition back in May.     Does

10   that sound accurate?

11       A    It does.

12       Q    And in his request we made the legal decision

13   that we felt like he was asking for stuff outside what

14   all was allowed.    And ultimately we filed a motion for a

15   protective order.

16                 MR. RICHIE:    Your Honor, can we approach?

17                 THE COURT:    Yes.

18                 (The following was in the presence but

19                 out of the hearing of the jury.)

20                 MR. RICHIE:    This is a clear violation of

21   the motion in limine.   We're not supposed to talk about

22   motions with the Court and orders from the Court.     They

23   never set their motion for protection.   I never got an

24   order.

25                 THE COURT:    Well, the door was open when

                                                                95
 1   you asked this lawyer certain questions about the file

 2   and not being able to receive the information he was

 3   instructed not to deliver.     I think they have the right

 4   to cross examine.

 5                   MR. RICHIE:    Sure.

 6                       (The following was in the presence

 7                       and hearing of the jury.)

 8       Q    (By Mr. Stubbs) Mr. Martin, what I was talking

 9   about was back in May when Mr. Richie asked to take your

10   deposition and he sent you documents telling you that

11   you had to come to the deposition and you had to bring a

12   bunch of stuff with you.      Now, in that we felt like he

13   was asking for more than what was allowed, and we filed

14   what is called a motion for protective order.     And do

15   you remember getting a copy of that?

16       A    I'm not sure.

17       Q    Okay.    Well, I'll just represent to you that

18   we did file that motion.

19       A    Okay.

20       Q    And my recollection prior to you going to the

21   deposition was that I did not want you to take any of

22   Johnny and Amanda's personal files and I believe that

23   Ms. Allen was there as well.     Is that in line with your

24   recollection for the most part?

25       A    Yes.

                                                                  96
 1       Q    And so I believe also in your deposition you

 2   were very clear with Mr. Richie and you said you would

 3   be happy to produce it with a Court order, referring to

 4   various documents?

 5       A    Yes.

 6       Q    Do you possess that memory?

 7       A    Yes.

 8       Q    Did you ever receive anything from Mr.

 9   Richie's office after that time?

10       A    Not to my recollection.

11       Q    Is it possible that you had some confusion

12   about what you were supposed to bring and what you

13   weren't supposed to bring

14       A    Certainly possible

15       Q    But obviously at that time you still had an

16   attorney/client privilege with Johnny and Amanda Wade as

17   for work you did for them, correct?

18       A    Yes.

19       Q    And you still had an attorney/client privilege

20   with Edell Wade or the Estate of Edell Wade, correct,

21   for the work that you had done for Edell?

22       A    Well, she was dead.   So I don't know that I

23   had it with Edell, but I would have with the estate I

24   guess.

25       Q    Well, if I came in and asked you about someone

                                                              97
 1   that you had done work for who has now passed away, I

 2   can't just come in and look at your file; can I?

 3       A     No.

 4       Q     I mean, there's still some level of privilege

 5   there where you're not authorized to just release that

 6   information, right?

 7       A     Right.

 8       Q     You were asked something about some documents

 9   previously being sent to the County Road address where

10   Edell and Johnny and Amanda lived and then later some

11   documents went to the hardware store address?

12       A     Yes.

13       Q     Because someone had run over their mailbox?

14       A     Could be.

15       Q     Well, if the evidence showed that someone ran

16   over their mailbox --

17       A     Certainly possible.

18       Q     And I mean there wasn't anything egregious or

19   evil about trying to send that to the hardware store,

20   was it?

21       A     No.    I just wanted to be sure that she got it.

22       Q     And you knew that Johnny and/or Amanda would

23   make sure she did?

24       A     Right.    I knew where I could find them.

25       Q     Then you were asked some questions about some

                                                               98
 1   paragraphs in some various documents and I believe you

 2   mentioned to Mr. Richie that you thought those might be

 3   Pro Doc forms.    Can you tell this jury what Pro Doc

 4   forms are?

 5       A    It's a computerized set of legal documents

 6   that was promulgated by a company here for use on

 7   computers where you can insert different names,

 8   addresses, et cetera, et cetera, just kind of streamline

 9   preparation of documents.

10       Q    In effect are those just standardized forms

11   for the most part?

12       A    Yes.

13       Q    So when you use standardized forms in your 42

14   years of practice have you ever inadvertently left a

15   paragraph in that didn't apply?

16       A    Well, many, many times there are many

17   paragraphs that don't apply that nobody much worries

18   about because it's more trouble to take them out than to

19   leave them in, as long as they're not harmful.

20       Q    Have you ever inadvertently had a paragraph

21   that didn't get into the document even though you

22   intended it to?

23       A    Yes.

24       Q    You were asked some questions about your

25   amortization schedule and I still don't know what

                                                              99
 1   they're trying to make a point with on that, but your

 2   amortization schedule doesn't have -- did not take into

 3   account the $150,000 payment that was made by Johnny and

 4   Amanda; did it?

 5       A    No, and I don't know that I knew about that.

 6   I don't know that they mentioned it.    And I might say on

 7   the amortization schedule I probably told my secretary,

 8   Take this note and go run an amortization schedule on

 9   it, without much other input just to give me a place to

10   kind of start.    So I didn't intend for it to be a

11   finished product.

12       Q    It wasn't any part of a thought-out scheme to

13   try to deceive anybody; was it?

14       A    No.

15       Q    In fact, the loan date was 2004 instead of

16   2006, and it didn't include the zero percent interest

17   for a period of time?

18       A    I'm sure my secretary did the best she could.

19   That's what I got back.

20       Q    Okay.    Along those lines I think I understood

21   your testimony to be when we were trying to figure out

22   what the correct principal amount was for the

23   modification, it could have been any number that got put

24   in there so long as Edell agreed to it, right?

25       A    Yes.

                                                              100
 1          Q   And so long as that's what she wanted?

 2          A   Correct.

 3          Q   And I believe your notes show that you had

 4   multiple communication with Lori Graham, and Mr. Richie

 5   is trying to say that didn't happen.

 6          A   Yes, sir.

 7          Q   And are you comfortable that you talked to

 8   Lori Graham?

 9          A   Oh, I know I talked to Lori Graham.

10          Q   If you have an older person who wants to give

11   property to just -- an easiest example is a child.

12   Wouldn't it be proper to simply say there's no benefit

13   to the older person; is there?

14          A   Well, emotional benefit is the benefit I would

15   see.

16          Q   So there is clearly a difference between a

17   financial benefit and an emotional benefit?

18          A   Certainly.

19          Q   And in your 42 years of practice is it odd for

20   someone to give up a financial benefit in exchange for

21   the emotional benefit of knowing they're helping their

22   kid?

23          A   No.

24          Q   Happens every day?

25          A   Happens every day.

                                                              101
 1       Q       You were asked these questions about the

 2   actual probate of the will and Mr. Richie tried to imply

 3   that somehow you had done something wrong, although he

 4   said, No, I'm not saying you did anything wrong.        The

 5   fact is there is no legal requirement to send anyone

 6   notice that you filed an application to probate a will;

 7   is there?

 8       A       There is not.

 9       Q       Can you tell the jury what happens, just as a

10   general sense, when -- if I come in your office and I

11   say, My dad passed away.     Can you tell the jury just

12   logistically how that process starts?

13       A       Well, initially we would do an application to

14   probate, get it signed by the person who is the

15   applicant, usually also the executor.     We would

16   accompany that with a check, send it and the original

17   will and the application to the County Clerk.        In this

18   instance, Burnet County.     The Clerk would post notice on

19   the county bulletin board that an application for

20   probate had been filed.     In roughly two weeks there

21   would be a probate hearing, which is usually a very

22   simple, brief matter where the Court hears testimony

23   about when the decedent died, where they died and so

24   forth.   The Court usually then signs the order on the

25   same day.    The Clerk files it.   We send out notices to

                                                                    102
 1   the beneficiaries to notify them that they are a

 2   beneficiary.     We then work on the inventory, usually get

 3   with the executor and find out what property the

 4   decedent owned, what it's worth.     Usually some back and

 5   forth about the value of properties and that sort of

 6   thing.

 7         Once we've got that nailed down, within at least 90

 8   days you're supposed to file the inventory, get that

 9   signed by the executor, send it to the Burnet County

10   Clerk, in this instance with an order.    The Court will

11   review it, sign the order usually approving the

12   inventory.     Once that's done you go about paying any

13   debts that are outstanding.     And frequently with elderly

14   folks like this, there are not debts.     Would then go

15   about distributing the assets to the beneficiaries of

16   the will.    And once all of that is done, we typically

17   would get a release from the beneficiaries that they've

18   been paid their proper amount and they were happy with

19   it.   And that would be the end of the process.

20         Q     So all the questions you were asked, you

21   didn't send notice.     Nowhere in the legal requirements

22   is it that you're -- I mean, you're not supposed to send

23   notice; are you?

24         A     Well, nothing requires it and we hardly ever

25   did, although I would frequently ask an executor, you

                                                                 103
 1   know, do you want me to write Uncle Bill and tell him he

 2   got the car, or you know, if they said yes, I did.     If

 3   they said no, I didn't.

 4       Q    And ultimately right after Amanda was

 5   appointed as the executrix of this estate you notified

 6   everyone just as you normally would, correct?

 7       A    Right.

 8       Q    You did everything just the same as you would

 9   if I came in or anybody else came in?

10       A    That's true.

11       Q    Now, as far as that document goes, that will,

12   it had in it an in terrorem clause.    Are you familiar

13   with that?

14       A    I am.

15       Q    Will you tell this jury what an in terrorem

16   clause is?

17       A    Well, it's a clause that people sometimes

18   insert to disinherit anyone who contests the will.     Some

19   folks are concerned that one of their children, kinfolk,

20   whoever is a beneficiary, will be unhappy with the will

21   and will want to contest it on whatever grounds, and the

22   in terrorem clause --

23                        MR. RICHIE:   Let me interrupt.   I'm

24   sorry, Mr. Martin.

25       May we approach, Your Honor?

                                                                 104
 1                      (The following was in the presence but

 2                       out of the hearing of the jury.)

 3                    MR. RICHIE:    I'm going to object to him

 4   asking this witness about an in terrorem clause and

 5   interpreting it when this was already ruled on summary

 6   judgment that the in terrorem clause is not implicated

 7   in this matter in any way, shape or form.

 8                    MR. DUCLOUX:    That wasn't the ruling.

 9                    MR. RICHIE:    It was.   He granted summary

10   judgment.

11                    MR. DUCLOUX:    Yeah.    He denied summary

12   judgment, so --

13                    MR. RICHIE:    Excuse me, you're right.

14                    MR. DUCLOUX:    We're allowed to have him

15   explain it.    He was used as an expert.      We're just

16   explaining what it is that shows her motivation that she

17   put this in the will so that these people didn't fight.

18                    MR. RICHIE:    We didn't contest this one.

19                    THE COURT:    Well, the will has been

20   admitted to probate.    The will contains the in terrorem

21   clause.     I think either one of you all would have the

22   right to go into the contents of the will and discuss

23   this term and what the legal implications are.

24                    MR. RICHIE:    But I think it's very

25   important if they are going to ask this witness whether

                                                                   105
 1   or not the filing of this lawsuit invokes that in

 2   terrorem clause --

 3                    MR. STUBBS:    I'm not going to ask that.

 4                    MR. RICHIE:    That invades the province of

 5   this Court.

 6                    MR. STUBBS:    I have no intention of

 7   asking that.

 8                    MR. DUCLOUX:    It just shows her mental

 9   state.     We're not asking about --

10                    THE COURT:    Limit the inquiry to only

11   what an in terrorem clause is.

12                    MR. STUBBS:    Yes, sir.

13                    MR. RICHIE:    Thank you.

14                    (The following was in the presence and

15                    hearing of the jury.)

16       Q       (By Mr. Stubbs)     Mr. Martin, I apologize

17   exactly where you were in explaining to this jury what

18   the in terrorem clause does and the fact that there was

19   one in Edell Wade's will that you prepared for her back

20   in whatever year that was, several years before her

21   passing.     Can you continue with your explanation,

22   please.

23       Q       I think I was saying some people put that in

24   their will so that if one of the beneficiaries is badly

25   unhappy and wants to contest the will based on

                                                                  106
 1   incompetency of the decedent or undue influence or

 2   whatever, that they're at risk of getting nothing if

 3   they lose.   So it kind of makes it risky to contest it.

 4       Q    So in a general sense the purpose is to

 5   hopefully prevent a fight?

 6       A    Yes.

 7       Q    In fact, Edell Wade had that in the will that

 8   she asked you to prepare for her?

 9       A    Yes.

10       Q    Now, in your 42 years of practice you've done

11   wills for people who had real estate, done wills for

12   people who didn't have real estate.   You've done, I'm

13   assuming, you've done wills for people who have families

14   where everyone got along and you've done wills for

15   families that didn't; is that accurate?

16       A    Accurate.   Yes.

17       Q    Is real estate sometimes one of the assets

18   that is really hard to split up if your family doesn't

19   get along?

20       A    Yes.

21       Q    And so if you can convert that real estate

22   into cash is it easier to split

23       A    It is.

24       Q    And is that basically just because it's hard

25   to value, it's hard to draw lines, it's hard to put

                                                              107
 1   fences, hard to get people to agree?

 2       A    Right.    Access, all sorts of things make real

 3   property hard to divide.

 4       Q    So if you had someone who thinks that there

 5   may be a fight between their kids or that they don't get

 6   along, is liquidating the real estate and selling it and

 7   converting it into either cash or a note or some sort of

 8   tangible something that can be split evenly, is that a

 9   common practice?

10       A    I'd say so.

11                 MR. STUBBS:    Your Honor, if I could have

12   just a moment to go over my notes.

13       Q    (By Mr. Stubbs)    Mr. Martin, just to make sure

14   that it's accurate and clear to this jury, you never saw

15   any indication that Edell Wade suffered from any mental

16   issues; did you?

17       A    I did not and I saw her, say in the hardware

18   store after whatever the last dealings were I had with

19   her with some of her family, I believe it was family.

20   And she was getting around good, looked normal and

21   seemed to be doing fine.

22       Q    You don't owe Johnny and Amanda anything in

23   this case; do you?

24       A    Unless I owe a bill at the lumber yard -- I

25   mean the hardware store.    I'm not sure if I do or not.

                                                                108
 1       Q      But you don't have -- you're not out to take

 2   one side or the other.    You simply want this jury to

 3   know what you know, correct?

 4       A      That's correct.

 5       Q      And Edell was your client; it wasn't Johnny or

 6   Amanda, right?

 7       A      True.

 8       Q      And everything you did you're comfortable that

 9   that's what Edell wanted?

10       A      I am comfortable.

11                    MR. STUBBS:    I'll pass the witness.

12                    MR. DUCLOUX:    I have a few questions on

13   the probate, and as you said this morning I can ask

14   those questions.

15                    THE COURT:    All right.   Limit your

16   questions to probate.

17                      CROSS EXAMINATION

18   BY MR. DUCLOUX:

19       Q      Mr. Martin, I am the attorney for Amanda in

20   her capacity of probate, so let me just ask you a few

21   more questions and I'll be done with you in five or six

22   minutes.

23       You have told us -- let me show you what's been

24   marked as Defendant's 8, 9 and 10.      Eight is a copy of

25   all of your letters, aren't they, to the heirs?

                                                                  109
 1        A     Looks to be, uh-huh.

 2        Q     And that's where you tell them the probate is

 3   in session, you give the number, who the executor is, et

 4   cetera?

 5        A     Correct.

 6                     MR. DUCLOUX:    Offer Defendant's Exhibit

 7   8.

 8                     MR. RICHIE:    No objection, Your Honor.

 9                     THE COURT:    Defendant's Exhibit 8 will be

10   received into evidence.

11                     MR. DUCLOUX:    May I approach, Your Honor?

12                     THE COURT:    You may.

13        Q     (By Mr. Ducloux)      And then when you filed the

14   sworn inventory, that's not the end of it.       The Judge

15   has to approve that inventory?

16        A     Certainly.

17        Q     And does that happen with an order?

18        A     Yes.

19        Q     And under the law you have to do that within

20   90 days?

21        A     Correct.

22        Q     And even if there is an amendment it still has

23   to be done within 90 days unless it's something you

24   couldn't know about, right?

25        A     Right.

                                                                   110
 1       Q     So on this you actually had a court order

 2   signed.   I'm going to show you Defendant's Exhibit 9.

 3   Does that appear to be a true and correct copy of the

 4   Court's order?

 5       A     It does.

 6       Q     Let me show you No. 10.      When you amended it,

 7   you had the phone call and I don't know who it was, but

 8   somebody said, Wait a minute, that cash has to be in

 9   there.

10       A     Right.

11       Q     And both of those were approved by the Judge,

12   weren't they?

13       A     They were.

14                    MR. DUCLOUX:    These are court orders.

15   I'm offering Defendant's Exhibits 9 and 10 being the

16   orders of October 5th and November 23rd.

17                    THE COURT:    Give them to counsel.

18                    MR. RICHIE:    No objection.

19                    THE COURT:    All right.   Defendant's

20   Exhibits No. 9 and 10 will be received into evidence.

21       Q     (By Mr. Ducloux)      Now, as to attorney for the

22   estate, after that date did you receive any notice of

23   challenge to one penny that was on those inventories?

24       A     No.

25       Q     Did Amanda follow your instructions in

                                                                111
 1   administering this estate?

 2       A       Yes.

 3       Q       Did she take her job very seriously?

 4       A       It seemed to me she did.

 5       Q       Did she get you information on a timely basis?

 6       A       She did.

 7       Q       Did she consult with you if she thought there

 8   was an error on anything?

 9       A       Yes.

10       Q       Did she ask your advice on making sure it was

11   done correctly?

12       A       I believe so.

13       Q       Let me also say in her capacity as executor,

14   we call everybody executor now, don't we.    In her

15   capacity she and Johnny had this executory contract,

16   this contract to buy the land.    Does Texas law allow an

17   executor to complete the purchase of something from the

18   decedent?

19       A       Yes.

20       Q       In fact, that's written in the law.    It

21   doesn't violate the law or create a conflict of interest

22   for her to continue to make the payments even though

23   she's serving as the independent executor?

24       A       Correct.

25       Q       Just two or three questions generally about

                                                                112
 1   estate planning in this case.    We normally, as I told

 2   the jury yesterday, those of us who do general practice

 3   do four things for everybody.    We do a will, power of

 4   attorney, medical power of attorney and directive.     Is

 5   that the typical package you would see typically in the

 6   State of Texas?

 7       A    It is.

 8       Q    And what you have in Edell Wade's file is that

 9   typical package; isn't it?

10       A    It is.

11       Q    Is there anything unusual or abnormal about

12   the estate planning of Edell Wade?

13       A    I would say it's just run-of-the mill typical.

14       Q    Did you see or notice or advise Amanda at any

15   time that she was doing something improper in her

16   capacity as the executor of the estate?

17       A    No.

18       Q    Did you ever see or notice anything suspicious

19   or diabolical about this estate?

20       A    No.     I don't know if I know what a diabolical

21   estate is.   It seemed pretty normal to me.

22       Q    Okay.     And then my last question is you were

23   asked some questions about after she was serving whether

24   they were in default, if somebody makes two payments in

25   a row ahead of time, they're not in default the next

                                                                 113
 1   month; are they?

 2       A     You mean if they skip --

 3       Q     No.   Let's say I owe you a thousand dollars a

 4   month.   I'm going to be out of town so this month I'm

 5   sending you $2,000.     So the next month --

 6       A     No, no.

 7       Q     You don't understand, do you, how much Johnny

 8   and Amanda have paid towards this note over time?

 9       A     I don't know.

10       Q     In fact, they could be way ahead of the

11   original schedule?

12       A     Could have paid it off for all I know.

13       Q     Right.     So you were just saying generally

14   there could be a default without knowing the specifics

15   of this case?

16       A     Correct.

17       Q     So you're not trying to say that you have made

18   a judgment in this case that there is any sort of

19   default under either the original note, the modification

20   or anything like that?

21       A     I don't know anything about any defaults.

22       Q     Were you asked to investigate whether there

23   were any defaults?

24       A     No.

25                   MR. DUCLOUX:   I think that's all the

                                                              114
 1   questions I have.

 2                    THE COURT:    Redirect?

 3                    MR. RICHIE:    Yes, sir.

 4                    REDIRECT EXAMINATION

 5   BY MR. RICHIE:

 6       Q     If in fact there is an executor and there's a

 7   note and there have been payments skipped or there have

 8   been payments that have been made but they are below

 9   what is required under the note, is the executor

10   required to enforce that note and declare a default?

11       A     I don't know that they're required.      I would

12   think they're certainly entitled to in their judgment if

13   that's the proper course of action to protect the

14   estate.

15       Q     If there were an event of skipped payments,

16   for example, or late payments or a modification that

17   shouldn't have taken place and the executor is the same

18   person as the maker of the note, wouldn't that executor

19   then have a conflict of interest with respect to the

20   enforcement of the original note?       That would be a

21   conflict; wouldn't it?

22       A     Well, I would say it would be a problem, yes.

23       Q     So let me now talk about this question of who

24   was your client.

25                    MR. RICHIE:    And I apologize, Judge.   I

                                                                   115
 1   need to get up.

 2       Q    Let me show you -- you might check your own

 3   file, it might be the easiest.    It's from Exhibit 38 and

 4   I'm going to ask you, please, I want you to look at in

 5   your file if you don't mind and I'm going to show you

 6   what I'm looking at.   We went over this earlier but

 7   there was a file for Edell Wade in 2007 and that file

 8   had on it the file number.

 9       A    Yes.

10       Q    And that file number was unique to Edell Wade?

11       A    Yes.

12       Q    And you could have used that same category of

13   file numbers in 2009, right?

14       A    Yes.

15       Q    But you didn't?

16       A    Yes.

17       Q    And your file says Johnny and Amanda Wade are

18   the clients?

19       A    Yes.

20       Q    And then you were asked by Mr. Stubbs, Well,

21   isn't it true that really even though you put that on

22   the file you're really representing Edell Wade.    I'm

23   gong to show you your payment ledger in the file.      Who

24   paid for the modification work?

25       A    It says it was paid for by Amanda Wade.

                                                                  116
 1       Q    And who does it show as the client on that

 2   money ledger that shows who's paying?

 3       A    Johnny Wade, et ux.

 4       Q    That would be Amanda?

 5       A    Correct.

 6       Q    Then if we go back to the file contents, Mr.

 7   Martin -- and again I apologize for standing over you,

 8   but there is a transmittal in here where your office

 9   sends some paper work to Johnny and Amanda.     And I'm

10   trying to go fast because I want to end and get

11   everybody out of here today like the Judge suggested.

12   Or maybe he just wants me out of here.    In any event,

13   here's this little slip of paper and I need to show the

14   jury what it looks like.     Who's it addressed to?

15       A    Mr. And Mrs. Johnny Wade.

16       Q    Is it you -- are you the author of this?

17       A    Yes.

18       Q    And you say, Enclosed are the copy of the

19   recorded modification agreement, the original of which

20   has been sent to Edell Wade and your file regarding this

21   matter which you left with us.    That's what it says;

22   doesn't it?

23       A    Uh-huh.

24       Q    And that's what you sent them was Johnny and

25   Amanda's file; didn't you?

                                                               117
 1       A    Uh-huh.

 2       Q    I mean, it's pretty clear that you were

 3   representing Johnny and Amanda Wade.    That's what your

 4   file says and that's what your letters say and your

 5   billing says.   And I know that you want to tell us that

 6   you weren't, but that file has Johnny and Amanda Wade's

 7   name on it; doesn't it?

 8       A    It does.    What I would say about that is

 9   especially in a family situation I wasn't real careful

10   about exactly whose name went on the file and in view of

11   the fact that I had done this other work for Mrs. Wade I

12   felt like I was obligated to see that I did what she

13   wanted done.    And I think I did what she wanted done.

14       Q    And Mr. Stubbs asked you with older people

15   that's sometimes the way you communicate, with their

16   family members?

17       A    Yes.

18       Q    In 2007 you opened a file with Edell Wade's

19   name on it, Exhibit 88.   She was 92 years old?

20       A    I'm surprised, but I'm sure that's right.

21       Q    That's old, isn't it?    It's older than me.

22       A    It's a little older than me.

23       Q    And in it one of the first things is a letter

24   to Edell Wade, not Johnny, right?

25       A    Right.

                                                                118
 1       Q    You could have opened the file in Edell Wade's

 2   name, sending Edell Wade the correspondence and

 3   communication.   You just told us that after all of this

 4   was done -- so this would be before -- 2009 would be

 5   before you saw her in the hardware store and she was

 6   getting around just fine; wasn't she?

 7       A    Yes.

 8       Q    I don't know if you know the answer to this,

 9   but if you do help me out.   We were talking about

10   fiduciary relationships earlier, do you know under Texas

11   law whether a fiduciary relationship can exist in the

12   context of a family relationship where a mother for

13   example places trust and confidence in her son to take

14   care of her financial issues and health issues?

15       A    I'm sure it can, sure.

16       Q    That can happen, can't it?

17       A    Yes.

18       Q    And you told me earlier that it looked like

19   when you met with Johnny and his mom and Amanda, it

20   looked like she was placing trust and confidence in

21   Johnny and Amanda?

22       A    They seemed to be getting along great.

23       Q    She was placing her trust and confidence in

24   them?

25       A    Or vice -- I guess that's why she brought them

                                                              119
 1   along.

 2       Q     Had power of attorney in Amanda's name, right?

 3       A     Uh-huh.   Yes.

 4       Q     Named Amanda and Johnny in the will as heirs?

 5       A     Sure.

 6       Q     And Amanda as executor?

 7       A     Yes.

 8       Q     But Amanda on healthcare directive?

 9       A     Yes.

10       Q     That was trust and confidence?

11       A     Yes.

12       Q     You had some notes in that 2007 file from your

13   first meeting.    We kind of agreed that must have been

14   around January 9th of '07 and you're writing notes about

15   what Mrs. Wade wants in her estate planning.    May I take

16   this from you?

17       A     Yes.

18       Q     You don't see anything in there about a gift;

19   do you?

20       A     No.

21       Q     Because she didn't mention that, that she

22   wanted to make a gift; did she?

23       A     No.

24       Q     In fact, she didn't make a gift?

25       A     No.

                                                               120
 1       Q    Mr. Stubbs asked you did it really matter to

 2   you what the principal balance was on the note, and you

 3   said you wanted to hit within a gnat's ear and that's

 4   why you were doing an amortization schedule; do you

 5   remember that?

 6       A    I think what I said was I didn't think they

 7   wanted to get it within the gnat's ear, and I didn't.

 8       Q    Did you have any idea what they wanted to get

 9   it within?

10       A    Well, not really.    They were going to change

11   it and I was just waiting for them to tell me how they

12   wanted to change it.

13       Q    You really don't know what Mrs. Wade was

14   trying to do with respect to those changes other than

15   what you wrote in your notes, and remember we saw that

16   as disjunctive.   There was going to be an interest

17   reduction or --

18       A    Right.   Whether they adhered to that or not I

19   don't know.

20       Q    But you do recall when you wrote the

21   modification you took the time to write in bold, This is

22   about interest only.

23       A    Right.   I wanted to make that clear.   And it

24   may have been my mistake.    I may not have remembered at

25   that time that they even talked about reducing the

                                                               121
 1   balance.    And to this day I don't know if or how much

 2   they reduced it.

 3       Q       And that's not what you thought you were

 4   doing?

 5       A       No.

 6       Q       You were reducing the interest to zero?

 7       A       That's -- at this point that's all I can

 8   remember.

 9       Q       Does $50,000 sound quite a substantial amount

10   of money when it's compared to $400,000?

11       A       Yes.

12       Q       Do you remember that math that I did with you

13   a minute ago?

14       A       Yes.

15       Q       If your secretary got it right, that note debt

16   was at $426,000 is where she started?

17       A       Something like that.

18       Q       And you're right at -- the modification was a

19   hundred twenty -- that's a $200,000 difference.       That's

20   not a gnat's ear; is it?

21       A       No.

22       Q       That ain't close to a gnat's ear.    Right?

23       A       That's correct.

24       Q       You were asked did I do anything more after

25   May to try to get your file.       I subpoenaed you here

                                                                122
 1   today; didn't I?

 2       A       Yes.

 3       Q       And I came before then with a court order to

 4   instruct you to ignore them and to bring me the file;

 5   didn't I?

 6       A       I don't know anything about that.

 7       Q       Did you bring the file?

 8       A       Yes.

 9       Q       Were you ordered to bring it?

10       A       I was subpoenaed three times to bring it.

11       Q       So Mr. Stubbs didn't tell you that the judge

12   instructed him to tell you to bring that file?

13       A       Yes.

14       Q       And you know that's the first time I've seen

15   that file is this morning?

16       A       I don't know.

17       Q       Well, you didn't get it to me; did you?

18       A       To be honest, at the deposition I don't know

19   what I've given copies of to Mr. Stubbs.    I don't know

20   what I gave to Don Walden.

21       Q       Mr. Stubbs wanted to ask you about the in

22   terrorem clause in the will, the don't-fight-with-me

23   clause.     In your notes of 2007 you don't see anything in

24   there about Mrs. Wade telling you she's worried about a

25   dispute among her children; do you?

                                                                123
 1         A   That's correct.

 2         Q   It's correct that she did not say that?

 3         A   That's correct.

 4         Q   Let me show you the will.

 5         A   It may have gotten set aside.

 6         Q   88-B.   Would you look at 88-B.

 7         A   Okay.

 8         Q   And would you look at what is known as the in

 9   terroreum clause.   Tell me when you've seen that.

10                   MR. RICHIE:   Would you put up the will,

11   please, Ms. Stevenson, and go to paragraph 6-C on page

12   2.

13         Q   (By Mr. Richie)     That in terrorem clause is

14   that just kind of a standard in terrorem     clause that's

15   not unique to her will.     It's one that you would put

16   into anyone's will, right?

17         A   True.

18         Q   It doesn't say anything about ranch sale; does

19   it?

20         A   Huh-uh.

21         Q   Doesn't say if anybody contests the ranch sale

22   that that would be a problem?

23         A   No.

24         Q   You could have put that in there, right?

25         A   If they told me to.

                                                                124
 1       Q      And they didn't.   And it didn't say anything

 2   about a note, a promissory note, a contest on a note?

 3       A      Correct.

 4       Q      But you could have put that in there?

 5       A      Sure.

 6       Q      And just as you said if they had told you to?

 7       A      Right.

 8       Q      And they didn't?

 9       A      No.

10       Q      Not Johnny Wade, not Amanda Wade, but most

11   importantly not Edell Wade, correct?

12       A      Right.

13       Q      That clause has to do with contesting the

14   will; doesn't it?

15       A      Yes.

16       Q      Do you know whether or not this is a will

17   contest?   I will represent to you it is not.     Nobody has

18   challenged the will.

19       A      I won't argue with you.

20       Q      In fact, my client, Nancy Burns and others,

21   they actually want the estate to have more money in it

22   so they would get more under the will.    That's what this

23   suit is about; isn't it?

24       A      I'm really not involved in the suit.    I

25   haven't looked at your pleadings.

                                                                125
 1       Q     All right.   Fair enough.

 2                 MR. RICHIE:   Give me one minute, Judge.

 3   I'm close.

 4       Q     (By Mr. Richie)   I'm sorry.   I've been

 5   practicing 43 years and I graduated the same year you

 6   did, but you're retired and I'm not and I'm jealous.

 7       In all that time, in all the work you've done, have

 8   you ever seen a 32 year old -- I'm sorry, an 89 year old

 9   seller take a 32 year note to finance the sale of real

10   estate?

11       A     You know, I have no idea.    I have seen a

12   number of people including myself take notes that I

13   never ever hoped to live to collect, if that's what you

14   mean.

15       Q     I want to know in your estate planning work,

16   your real estate work, do you recall any other situation

17   where an 89 year old received a 32 year 2% interest

18   note?

19       A     I can't point you to any but I'm going to say

20   there are some.

21       Q     You don't know of any and you can't recall one

22   in your 42 years that you've seen, other than this one?

23       A     No, I don't recall any.     As I say, I have

24   taken notes myself that I don't hope to live long enough

25   to collect.

                                                              126
 1         Q   I'm going to show you -- there was a question

 2   about safe deposit boxes and who owns the contents of

 3   safe deposit boxes; do you recall that?

 4         A   Yes.

 5         Q   Let me hand you Exhibit No. 87 and just ask

 6   you generally can you see what that is; not if you've

 7   ever seen it before but do you recognize what that form

 8   is?

 9         A   I do.

10         Q   Would you tell the jury what it is?

11         A   Safe deposit box lease.

12         Q   And on this one who does it show as the

13   parties that own the safe deposit box?

14         A   Edell Wade or Johnny Wade.

15                    MR. RICHIE:    I would offer Exhibit 87

16   into evidence.

17                    MR. DUCLOUX:    No objection, Your Honor.

18                    THE COURT:    87 will be received into

19   evidence, Plaintiff's 87.

20                    MR. RICHIE:    Thank you, Your Honor.

21         Q   (By Mr. Richie)       I want to turn to the part

22   that you see it says on a joint tenant?

23         A   Yes.

24         Q   Is that a co-ownership?

25         A   Yes.

                                                                  127
 1       Q       And then you turn over here to joint owners on

 2   page 2.

 3       A       Yes.

 4       Q       And would you read to the jury the second

 5   sentence where it says, "Joint owners".     It's real

 6   small.

 7       A       The ownership of the lease will not affect the

 8   title to any contents of the safe deposit box.

 9       Q       So if there was things in that box that

10   belonged to Johnny Wade and things that belonged to the

11   estate, even if there was a right of survivorship that

12   paragraph would mean that the estate would still own its

13   assets, wouldn't it?

14       A       I haven't read the whole thing, but assuming

15   something else doesn't vary it, I would agree with that.

16       Q       All right.   And in any event we know that

17   $80,000 from that safe deposit box got on the amended

18   inventory and the executor said it is the estate's

19   property?

20       A       Correct.

21       Q       And you prepared that inventory and submitted

22   it for court approval?

23       A       Sure.

24       Q       So you're not telling this jury that the

25   contents of that box, the $80,000, somehow belonged to

                                                                128
 1   Johnny Wade simply because it was co-owned; are you?

 2       A    No.

 3       Q    Thank you, Mr. Martin.

 4                    MR. RICHIE:    I pass the witness.

 5                    THE COURT:    Anything further?

 6                        *******

 7                    MR. RICHIE:    I have one question.

 8                    THE COURT:    Okay.

 9              FURTHER REDIRECT EXAMINATION

10   BY MR. RICHIE:

11       Q    I want to ask you about 87 which is the safe

12   deposit box form, and I think I understood your answer.

13   He could have gone and removed.        What those two

14   sentences together means is if the box doesn't get

15   sealed upon death, but the right to the box is still

16   accessible by the other owner, but that the contents of

17   it are not affected by the right of survivorship?

18       A    Correct.

19       Q    Isn't that what that means?

20       A    That's the way I read it.

21       Q    And so if there were estate assets in there,

22   they still belonged to the estate?

23       A    Right.

24                        MR. RICHIE:       I pass the witness.

25            (End of excerpt testimony of Michael Martin.)

                                                                  129
 1   ******

 2

 3

 4

 5

 6

 7

 8

 9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

              130
 1                    C E R T I F I C A T E

 2   STATE OF TEXAS          )

 3   COUNTY OF BURNET        )

 4       I, VICKI K. KANEWSKE, Official Court Reporter in

 5   and for the County Court at Law of Burnet, Burnet

 6   County, State of Texas, do hereby certify that the above

 7   and foregoing contains a true and correct transcription

 8   of all portions of evidence and other proceedings

 9   requested by counsel to be included in this volume of

10   the Reporter's Record in the above-styled and numbered

11   cause, all of which occurred in open court or in

12   chambers and were reported by me.

13       I further certify that this Reporter's Record of

14   the proceedings truly and correctly reflects the

15   exhibits, if any, requested to be included.

16       I further certify that the total cost for the

17   preparation of this Reporter's Record is $3,937.50 and

18   has been paid for by Graves Dougherty Hearon & Moody.

19       GIVEN UNDER MY HAND AND SEAL OF OFFICE this the

20   12th day of May, 2015.

21                    /s/Vicki K. Kanewske

22   VICKI K. KANEWSKE, TEXAS CSR NO: 2159; EXPIRES: 12-31-16

23     Official Court Reporter, Burnet County Court at Law

24        220 S. Pierce Street, Burnet, Texas   78611

25   512-715-5244; Fax: 512-715-5226 Email:Vkaykan@live.com

                                                              131
                               03-15-00100-CV

 1                           REPORTER'S RECORD

 2                          VOLUME 3 OF 4 VOLUMES
                                                                   FILED IN
                                                            3rd COURT OF APPEALS
 3        CAUSE NO:       P9127/COURT OF APPEALS   NO: 03-15-00100-CV
                                                                 AUSTIN, TEXAS
                                                            3/18/2015 10:35:27 AM
 4       IN THE MATTER OF                          IN THE COUNTY COURT
                                                                JEFFREY D. KYLE
                                                                     Clerk
 5       THE ESTATE OF                             AT LAW

 6       EDELL WADE                                BURNET COUNTY, TEXAS

 7

 8

 9

10

11                               EXHIBITS

12

13

14

15

16                On the 11th day of April, 2014, the foregoing

17       proceedings came on to be held in the above-titled and

18       numbered cause before the HONORABLE RANDY SAVAGE, Judge

19       presiding at Burnet, Burnet County, Texas.

20                Proceedings reported by computerized stenotype

21       machine.

22

23

24

25

                                                                            1

TAB L
RR VOL. 3 OF 4 AT 39-46
Page 1 of 86
 1                                   EXHIBIT INDEX

 2       Plaintiff's Trial Exhibits:

 3       NUMBER           DESCRIPTION            OFFERED   RECEIVED   VOL

 4       7                Payments made          (trial not transcribed)

 5       9                Power of Attorney      (trial not transcribed)

 6       11               Modification Agreement (trial not transcribed)

 7       38               File from Michael Martin(trial not transcribed)

 8

 9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

                                                                            2

TAB L
RR VOL. 3 OF 4 AT 39-46
Page 2 of 86
                                                                               noo
                                                      IIMI H IIIII             8 PGS
                                                                                            2889t5193

                                                    MODIFICATION AGREEMENT

                    Date: May 1, 2009

0                   Holder of Not. and Uen:
                    Holder'a Mailing Address:
                                                  EDELL WADE

                                    REDACTED
                                   REDACTEDREDACTED
                                   Bumet County
                    Obligor:       JOHNNY WADE and AMANDA WADE, husband and wife
                    Obligor's Mailing Addraae:
                                   REDACTED
                                   REDACTEDREDACTED
                                   Lampasas County
                    Nota
                           Date: February 6, 2004
                           Original principal amount: $500,000.00
                           Borrower:      JOHNNY WADE and AMANDA WADE, husband and wife
                           Lender:        EDELL WADE
                           Maturity date: February 1, 2036
                    Unpaid Principal and lnterast on Note: $227,528.00
                    Uen Documents: Deed of Trust dated February 8, 2004 from .JOHNNY WADE and AMANDA
                    WADE to PAT E. CAVNESS, Trustee, recorded as Document 002424, Volume 1223, page 503,
                    Offi~al Public Recorda of Burnet County, Texaa

                    Property (Including any Improvements):

                           That certain real property In Burnet County, Texaa, mora particularly deacnbed In Exhibit
                           "A" attached hereto and made a part hereof for all purpoaBS.
                    Extended Maturity Date of Not.: March 1, 2025
                    Modified Terms: The Interest rate on this Modification and Extension shall be zero CO%) percent
                    per annum. Principal shall be due and payable In monthly Installments of ONE THOUSAND TWO
                    HUNDRED AND N0/100 DOLLARS ($1 ,200.00) each beginning Juna 1, 2009 and continuing
                    regularly on the first date of each succeeding month until paid.

0                         •THE PARTIES STATE HEREBY THAT THIS MODIFICATION IS FOR THE SOLE
                    PURPOSE OF EUMINATING THE OBLIGATION OF OBUGORTO PAVTO HOLDER INTEREST
                    ON THIS LOAN.•
                          The Note IS securad by Ilana agalnat the Property. Whether Obligor Ia Primarily liable on
                    the Note or not, Obligor navarthel- agree& to pay the Note and comply with the obftgatlona
                    expreased In the Lien Documents.
                           For value received, Obligor renews the Note and promlaas to pay to the order of Holder of
                    Note and Lien, according to the Modified Terms, the Unpaid Principal and Interest on Note. All
                    unpaid amounts are due by the Extended Maturtty Data of Note. ObHgor also extends the liens
                    deacribed In the Lien Documents.
                          The Note and the Lien Document& continue aa written, except as provided In this
                    agreement
                            Obfigor warrants to Holder of Nota and Uen that the Note and the Lien Documents, as
                    modified, are valid and enforceable and represents that they are not subject to rights ol offset,
                    rescission, or other claims.

                                                                  - 1-

0
    TAB L                                                                                                               REDACTED
    RR VOL. 3 OF 4 AT 39-46
    Page 39 of 86
                              When the context requires, singular nouns and pronouns Include the plural.

0                                                                             EDE      :ADE

                                                                            ~~-
                    ST:ATE OF TEXAS                       §
                                                                                                                       . 2009, by

                                                                             Notary  bile, State of Texas
                                                                             My commhsslon expires: /.-: · ·'< ~ '( .! ·

                    STATE OF TEXAS                        §
                         This instrument - • acknowledged before me on ,. - -;; /. (                 li .{ .   .:/     • 2009, by
                    JOHNNY WADE.                                            ,

                    STATE OF TEXAS                        §

0
                    PREPAR&D IN THE OFFICE dl.....;,..,;,,..,;~;;:;;,.;;,:;,.;~
                   MARTIN a MILLICAN
                   512 EAST FOURTH ST.
                   LAMPABI'II. TX 785!10
                   m. ~~~:::,
                   AFTER RECORDING RETURN TO:
                   MARTIN a MILLICAN
                   !112 EAST FOURTH ST.
                   I.AMPAMS. TX 711560
                   TEl.: (512) 5118-GD
                   FAX: (512)l!Dtl-ll821

                                                                              -2-

0
    TAB L
    RR VOL. 3 OF 4 AT 39-46
    Page 40 of 86
0

                                                                               • · ao1d
                                                                   ~-~~~n!rn~!o~!~~.
                                                               in Burnet .Couney; 'r_aa, ·ena
                                t.                             .    ·.   • .                      .
                              JPiJ•at 'l'raott, West. Ono Ql>o.rter ~ Soc. 60; beill!I ane hundred ·
                              ab:'lli five 11nd· 28/l.oo aoree in llarnot Onunty; 'l'axaa, out or tho
                              ~:~•J~>~::·•! n=~1:;:;:/=~~.~~~={·~~~Lu.;!~ ~~~· alfi. :·
                              '\noa . tl 9f B 21~ vra. a do ll ' 8-)/14. l!l 21~ vra. , "l'henoe with the
                               N 1lne o1' the add A. lt. Ae'M':r Bur • . W 71 ~ 9~5 vr• at 11ld on ·the
                               aaid 'II 1.1ne J'rca wb1oh l;h&. lf B oor o1' the aft1d A~ U. lklrr;r
                               Bur          II 1'1 B s·     'l'ha Jl, B. cor of tlhe aa1CI.DeJ'Y7 .eUJ"; . 18 .
                                              a at 1ll4   Mit. Db ll I..&t'fiG L, Q, 11llq"keCI bra Jl ·     '
                                                          Jl, 19' w. with tbe:W 11ne               :S

0                                                                      top         or·
                                                                                 Dlll1'J' at
                                                                           oo:r. o'l'· tbe a
                                                                                          Blh'~

                                     · . "'   '           ..
                                                           ~

0
    TAB L
    RR VOL. 3 OF 4 AT 39-46
    Page 41 of 86
0
                              26th, 187.3· . DasSDnlns
                                    ·If '71 D i'J"OM the .
                                     -vra a at md.
                                  br• sl B · 162 vr~. ·
                                      wbenaD a J...       o.
                                            '1'h 8 19 E
                                                 a l.'tr-nob

0

                                      --_·
                                      ·')
                                      .

0
    TAB L
    RR VOL. 3 OF 4 AT 39-46
    Page 42 of 86
                                                                                    ..·. ·               ..   -".

0
                                             :..nd Ji:mll'la S7.1vea'bero. deaaaeed, ·tbe unslerutsnod arant:ora be.lj,ob7 con~o7-
                                              tnr. unto ~- eranteae bereln and und1v1dad rive-alxtba lSI~ 1nte~aat
                                             1nlthe aboYe deacr1bacJ 1and, the grantoe Ede11 S~1•eater Wade ovn1nc
                            -"'.              the- ot.ha~ undclvi-del) one-a1xt.h · (l./bl 1nte~aat t~•~•1n ·a'! one or 1:ho
                                            · daY~aaoa ot the A. H • .nd Emma Sy~vaetar, deOaaaad.
                                        .         '1'0 lli\VP. t.lUl TO l!OLD· !>he above deec~J.'bed pr-1aea, tosathor w1U> ·
                                              a11 and. •~nAU1ar, tNe rlgbta and' appartenancea thereto ln an~oe
                           · ·                'be1~&M;LW..i:%        ih~:;ie.~'~:r= W•d• and wi.te lld'eU s-,1nal>or                          •
                                                                                                 ·~a-o"";;A.,;.al'r'8~·1.niSfo.o-!l!.,l\:rlt'l• ·_;
                            f$
                            •
                                    .! IIOI!III'dl-.
                                 ..; ~ .,
                                                                .      ·     .
                                              ouz"'·l ieJ..rri.'Vexaoutaara · and " adllllnlat~atara. · to'""Wirrariii=... u.a"7u1'·o vor
                             ~:• 9 ·.. Dat'and" a11 . and a.1ngu1ar i the •a,!>:l.d preml.aaa unto 'the· Sil:l.d Qha~l.oa · Otto
                                          . Wou!a llld w1t'a B:da11 8'11Yeat:er Wade, t:hei.r heirs and llaalgna asainat
                                       ewe~ peraan · whomsoever 1aw~u11y ola~lftR, or to o~D~ the aano, or
                                       a.n7 part tbarenf'.                  ·                                 .·
                                             But: it: 1a' eapraeal.-, · ~·oed and at1pu1atod that tho Venda~'• Lien
                                       and IIUptt,ri.or t1tl.a Are t-eta1.ned ~~~a1nat the AbnVCt aeocr'ibOd J1roport7
                                       pr._laea· and ~rnv.men~a. in tavor at · Man~el Delbert · D71V•oter unt~1
                                       tba abo•• deaorlbed no~o ~d o1~ lnte~eat: thereon are . ru11y paid
                                       e."!loo:rdin& to lta .raae und tonor, a.t1'ect a. nd r•adlna,, •hen tlrl.a deed
                                       ablll1 \utoDII!a ·nbaolut:a.       ·
                                             Wit:noan our hande . ~t Lampaaaa, 'l'axo•, thla 1st de~ or ~ahua~,
                                       J\.   n • .1.9S2·                        ·

0

                                                                                                                                  A
                                                                                                                       . ~.        5      .., ,4·.. ··~ 1

    0
        TAB L
        RR VOL. 3 OF 4 AT 39-46
        Page 43 of 86
                              (

0

0

                                       j}
                                  .1        ~

                                       ....") .. . ;".-....:·,

0
    TAB L
    RR VOL. 3 OF 4 AT 39-46
    Page 44 of 86
                                .. ·.. /1
                          ~
                               ..~...
                              .:-:·     ~
                                            A . .;;\~ES

TAB L
RR VOL. 3 OF 4 AT 39-46
Page 45 of 86
0

0
                               FILED AND RECORDED

                              e~P:=,_,OI
                                .JWW~ • · ~         te:e1 : 4a Aft
                                          FEll: . . . . . .
                                J'•n.t p_..• .,.. County Cl.rk
                                    lk.arnet Count.y,    Te•ae

0
    TAB L
    RR VOL. 3 OF 4 AT 39-46
    Page 46 of 86
 1                          C E R T I F I C A T E

 2       STATE OF TEXAS

 3       COUNTY OF BURNET

 4                I, VICKI K. KANEWSKE, Official Court Reporter in

 5       and for the County Court at Law of Burnet, Burnet

 6       County, State of Texas, do hereby certify that the above

 7       and foregoing contains a true and correct transcription

 8       of all portions of evidence and other proceedings

 9       requested by counsel to be included in this volume of

10       the Reporter's Record in the above-styled and numbered

11       cause, all of which occurred in open court or in

12       chambers and were reported by me.

13                I further certify that this Reporter's Record of

14       the proceedings truly and correctly reflects the

15       exhibits, if any, offered by the respective parties.

16                I further certify that the total cost for the

17       preparation of this Reporter's Record is $834 and has

18       been paid for by Mr. Don Richie, Attorney at Law.

19                GIVEN UNDER MY HAND AND SEAL OF OFFICE this the 3rd

20       day of March, 2015.

21                             /s/Vicki K. Kanewske

22       VICKI K. KANEWSKE, TEXAS CSR NO: 2159; EXPIRES: 12-31-16

23          Official Court Reporter, Burnet County Court at Law

24                  220 S. Pierce, Burnet, Texas    78611

25       512-715-5244; Fax: 512-715-5226; Email Vkaykan@live.com

                                                                     3
TAB L
RR VOL. 3 OF 4 AT 39-46
Page 86 of 86
                        03-15-00100-CV

 1    Supplemental REPORTER'S      RECORD

 2                   VOLUME 3 OF 6 VOLUMES
                                                            FILED IN
                                                     3rd COURT OF APPEALS
 3   CAUSE NO:    P9127/COURT OF APPEALS    NO: 03-15-00100-CV
                                                         AUSTIN, TEXAS
                                                     5/14/2015 2:20:39 PM
 4   IN THE MATTER OF          )            IN THE COUNTY COURT
                                                       JEFFREY D. KYLE
                                                             Clerk
 5   THE ESTATE OF             )            AT LAW

 6   EDELL WADE                )            BURNET COUNTY, TEXAS

 7

 8

 9

10        EXCERPT TRIAL TESTIMONY OF LORI GRAHAM

11                          AND

12              TRIAL TESTIMONY OF AMANDA WADE

13

14

15

16

17

18

19

20              On the 1st day of October 2014, the following

21   proceedings came on to be held in the above-titled and

22   numbered cause before the HONORABLE RANDY SAVAGE, Judge

23   presiding, held in Burnet, Burnet County, Texas.

24              Proceedings reported by computerized stenotype

25   machine.

                                                                   1
 1                   A P P E A R A N C E S

 2   RICHIE & GUERINGER, P.C.

 3   100 Congress Avenue, Suite 1750

 4   Austin, Texas    78701

 5   512-236-9220

 6         BY:   MR. DON RICHIE

 7               MS. EMILY SEIKEL

 8         APPEARING ON BEHALF OF JAMES(BUD)WADE

 9

10   LAW OFFICE OF DON E. WALDEN

11   7200 North Mopac, Suite 300

12   Austin, Texas    78731

13   512-349-9595

14         BY:   MR. DON E. WALDEN

15         APPEARING ON BEHALF OF NANCY BURNS

16

17   GRAVES DOUGHERTY HEARON & MOODY

18   401 Congress Avenue, Suite 2200

19   Austin, Texas    78701

20   512-480-5600

21         BY:   MS. KATHRYN ALLEN

22   AND

23

24

25

                                                   2
 1               A P P E A R A N C E S   C O N T ' D

 2   STUBBS LAW OFFICE, PLLC

 3   202 N. Porter Street

 4   Lampasas, Texas     76550

 5   512-556-8970

 6       BY:     MR. EVAN STUBBS

 7       APPEARING ON BEHALF OF JOHNNY WADE AND AMANDA

 8       WADE, INDIVIDUALLY

 9

10   HILL, DUCLOUX, CARNES & DE LA GARZA

11   400 West 15th Street

12   Suite 808

13   Austin, Texas     78701

14   512-474-7054

15       BY:     MR. CLAUDE DUCLOUX

16       APPEARING ON BEHALF OF AMANDA WADE, EXECUTOR

17

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                                                         3
 1                         REPORTER'S RECORD

 2                   VOLUME 3 OF 6 VOLUMES

 3                     CHRONOLOGICAL INDEX

 4   PLAINTIFF'S WITNESSES:

 5   NAME:         Dir       Cross   Redir   Recross     Voir Dire   Vol

 6   Lori Graham              7                                       3

 7   Amanda Wade   22/56     168      200        228         54       3

 8   DEFENDANT'S WITNESSES:

 9   NAME:         Dir       Cross   Redir     Recross               Vol

10

11   Court Reporter's Certificate              Page 231               3

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                                                                          4
 1                  REPORTER'S RECORD

 2                 VOLUME 3 OF 6 VOLUMES

 3                  ALPHABETICAL INDEX

 4   WITNESSES:     Dir    Cross   Redir Recross Voir Dire   Vol

 5   Lori Graham             7                               3

 6   Amanda Wade   22/56    168     200    228     54        3

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                                                                 5
 1                        REPORTER'S RECORD

 2                     VOLUME 3 OF 6 VOLUMES

 3                          EXHIBIT INDEX

 4   PLAINTIFF'S EXHIBITS:

 5   No:   Description                                Offered        Rec'd   Vol

 6   91     Checking account statement/Edell Wade            150     150     3

 7   92    Checking account statement/Amanda/Johnny Wade     155     155     3

 8   93     Checking account statement/Blacksheep            155     155     3

 9   94    Amortization chart                                228     228     3

10   95    Edell Wade taxes chart                            228     228     3

11   96    Payment reduction chart                           229     230     3

12   DEFENDANT'S EXHIBITS:

13   No:    Description                                    Offered   Rec'd    Vol

14   11    Amortization schedule                             132     132     3

15   21    Handwritten chart                                 226     226     3

16

17

18

19

20

21

22

23

24

25

                                                                                   6
 1                   P R O C E E D I N G S

 2                        ******

 3                            (Jury present.)

 4                     LORI GRAHAM

 5   Having been previously sworn testified as follows:

 6                   CROSS EXAMINATION

 7   BY MS. ALLEN:

 8            Q      Ms. Graham, I want to get hold of all of

 9   your amortization schedules so that we have them all

10   before the jury and have you talk about them while

11   you're here with us, all right.     So let me get that

12   exhibit and I'll bring it up to you and maybe a couple

13   of others as well.

14       Ms. Graham, can you identify for us the Defendant's

15   Exhibit 11 as a set of amortization schedules that you

16   prepared in connection with the loan that Mrs. Wade made

17   to Johnny and Amanda?

18       A    Yes.

19       Q    Can you confirm, because I want to be sure,

20   that all of those pages are your amortization schedules.

21   I know one of them has that Post-it note on it.    I want

22   to be sure though that those are yours and that you're

23   comfortable with that.

24       A    Yes, this was prepared in 2004.

25       Q    Okay.    And so Mr. Richie showed you a sample

                                                                 7
 1   page just a little while ago and I apologize that I

 2   don't remember the number of that.

 3                   MS. ALLEN:    Do you?

 4                   MR. RICHIE:    Seven.

 5                   MS. ALLEN:    Seven?

 6       Q    (By Ms. Allen)       Exhibit 7.   Exhibit 7, that

 7   amortization schedule --

 8       A    Yes.

 9       Q    -- the basic -- the document itself, the

10   schedule itself that's your schedule, right?

11       A    Yes.

12       Q    You didn't mean for the ladies and gentlemen

13   of the jury to think that Amanda Wade gave you that

14   schedule, right?

15       A    No.    The schedule is in my file.     That note

16   came in Ms. Wade's information.

17       Q    That was a Post-it note, bright green I

18   believe, that came like stuck on the 1099 for Mrs. Wade?

19       A    Her other documents, yes.

20       Q    Okay.     So we can rest assured that Amanda Wade

21   never gave any amortization schedules to you, right?

22       A    No.     This was part of my work papers and

23   that's where I put the note so I would have that

24   documentation in my file.

25       Q    Okay.     Is it a -- what is it that the banks

                                                                  8
 1   use to tell Mrs. Wade how much interest she should be

 2   reporting?

 3          A   A 1098.

 4          Q   A 1098?

 5          A   A 1099-INT.

 6          Q   1099.    Okay.   And so if I understand the

 7   process, whoever brought -- let's say it was Amanda who

 8   brought you the 1099s that Mrs. Wade had received so

 9   that you could prepare Mrs. Wade's tax returns, the

10   Post-it note would have been stuck on that?

11          A   Yes.

12          Q   Okay.    And I just want to be sure I'm clear

13   because Mr. Richie uses the phrase, Was Amanda acting on

14   behalf of.   Is that a phrase that has significance to

15   you?

16          A   Well, I know she was our contact.     She was our

17   source of contact for Mrs. Wade.

18          Q   Right.    She gathered her information and

19   brought it to you, right?

20          A   Yes.

21          Q   Did you mean to suggest to these ladies and

22   gentlemen that Amanda was making decisions for Mrs.

23   Wade?

24          A   I don't guess -- no, not making decisions for

25   her.

                                                                9
 1       Q    Mrs. Wade --

 2       A    She was just providing us her information in

 3   order to get her return done.

 4       Q    Mrs. Wade, as far as you know, was making her

 5   own decisions, right?

 6                    MR. RICHIE:    Objection.

 7       A    I haven't spoken --

 8                    MR. RICHIE:    Calls for speculation.

 9                    THE COURT:    All right.    I'll sustain the

10   objection.

11       Q    (By Ms. Allen)        Ms. Graham, as a certified --

12   well, am I right that Mrs. Edell Wade was your client?

13       A    Yes.

14       Q    Not Amanda, not Johnny, right?

15       A    Correct.

16       Q    You never did any tax work for Johnny or

17   Amanda, right?

18       A    No, ma'am.

19       Q    Okay.     So no doubt about it your client was

20   Mrs. Wade?

21       A    Yes.

22       Q    And as a certified public accountant with a

23   license you certainly have certain duties and

24   responsibilities to your client, Mrs. Wade, right?

25       A    Yes.

                                                                     10
 1       Q       Can you tell the jury what those are?

 2       A       What my duties are to Mrs. Wade?

 3       Q       Well, in general of course wouldn't you agree

 4   that as her CPA you have a duty to act in her best

 5   interest?

 6       A       Yes.

 7       Q       You have a duty to obtain all of the

 8   information from her that you need in order to prepare

 9   the returns or other documents she's asking you to

10   prepare so that they're accurate, right?

11       A       Yes.

12       Q       And you certainly would never ask her to sign

13   a tax return if you thought she didn't know what she was

14   doing; would you?

15       A       I prepare returns based on information

16   provided to me.      I don't audit the return.     I prepare it

17   based on what the client provides me.

18       Q       Ms. Graham, I'm not trying to be critical but

19   you're a professional, right?

20                      MR. RICHIE:    Your Honor, I'm going to

21   object to Ms. Allen interrupting her answers.         Ms.

22   Graham should be allowed to finish her answer.

23                      THE COURT:    All right.   Let her answer

24   the question before you ask another one.

25       Q       (By Ms. Allen)       If there's anything else you

                                                                     11
 1   feel you need to share, Ms. Graham, please feel free to

 2   do that.

 3          You are a professional, right?

 4          A      Yes, ma'am.

 5          Q      And you would not ask a client or suggest that

 6   a client sign a tax return if you thought that your

 7   client did not know what she was doing; would you?

 8          A      No.

 9          Q      In fact, you take steps to try to make sure

10   that the people you do work for understand what you're

11   doing for them; don't you?

12          A      Yes.

13          Q      And that is what you did with Mrs. Wade,

14   right?

15          A      I don't recall Mrs. Wade actually coming in to

16   get her return.       It was picked up for her, so at that

17   point a lot of times I don't see the client.       I assume

18   they review it, they sign it and it gets mailed off.

19          Q      But you wouldn't indulge that assumption if

20   you thought she didn't know what she was doing; would

21   you?       You wouldn't assume that she read it if you really

22   thought she didn't know what she was doing; would you?

23          A      I guess I don't understand what you're -- I

24   mean.

25          Q      You never thought Mrs. Wade did not know what

                                                                   12
 1   she was doing; did you?

 2       A    I haven't spoken to Mrs. Wade in quite a few

 3   years.

 4       Q    Ms. Graham, if you had had the belief in your

 5   mind that Mrs. Wade was incompetent or didn't know what

 6   she was doing, you would not have suggested she sign the

 7   tax return; would you?

 8                    MR. RICHIE:    Your Honor, I'm going to

 9   object to this as asked and answered, but also

10   speculative.     She said she hasn't seen her in a few

11   years, so she obviously couldn't have reached that

12   conclusion.

13                    THE COURT:    I'll sustain the objection.

14       Q    (By Ms. Allen)        Ms. Graham, I think in walking

15   through the tax return information it's clear, but I

16   just want to confirm, is it accurate that Mrs. Wade had,

17   apart from any money from Johnny and Amanda, she had way

18   more money coming in than she needed to live the way she

19   chose to live?

20       A    I don't know the amount of Mrs. Wade's income.

21       Q    Well, you did her tax return.

22       A    I know what her interest was.        I -- the amount

23   she has in the banks is not on the statements.

24       Q    Yes, ma'am.     I do understand that.     But you do

25   know the income she was receiving because that was the

                                                                  13
 1   number that you had to know in order to do her returns,

 2   right?

 3       A       Her taxable interest, yes, ma'am.

 4       Q       Well, you would --

 5       A       That's all I had privy to, her taxable

 6   interest.    I don't know her income as far as her amount

 7   of money she has, no.

 8       Q       Wouldn't you report all of her income on her

 9   income tax return?

10       A       Yes.    Her taxable income, yes,

11       Q       Okay.    So you didn't know all of her income,

12   right?

13       A       Her taxable income, yes.     Which was interest

14   and Social Security.

15       Q       And so you can tell from looking at the tax

16   returns that you prepared and the kind of expenses that

17   she's asking you to deduct, you do know that she had

18   during this time, setting aside any money from Johnny

19   and Amanda, she had way more income than she required to

20   live the way she wanted to live, right?

21                      MR. WALDEN:   I'm going to object, Your

22   Honor.

23                      MR. RICHIE:   It's speculative.

24                      MR. WALDEN:   Well, on top of that,

25   unfortunately not all living expenses are tax

                                                                   14
 1   deductible.    So Ms. Graham may know about tax deductible

 2   and expenses, but not about all the far greater portion

 3   that are not tax deductible.      She didn't know how Mrs.

 4   Wade lived at the time or whether she had enough money

 5   to do whatever she wanted to do.      That's what she's

 6   being asked.

 7                   MS. ALLEN:    Your Honor, I believe this

 8   could be explored.

 9                   THE COURT:    This is cross.

10       Q    (By Ms. Allen)       Do you remember my question,

11   Ms. Graham?

12       A    Could you please repeat it.

13       Q    Yes, ma'am.    As her tax preparer and knowing

14   her income sources and her expenses in preparing her tax

15   returns, can you confirm for us that given the way that

16   Mrs. Wade chose to live and her lifestyle, she had way

17   more income than she needed to maintain the lifestyle

18   that she chose?

19                   MR. RICHIE:    Objection.   That calls for

20   speculation.

21                   THE COURT:    Sustained.

22       Q    (By Ms. Allen)       Would you agree that

23   oftentimes people choose to make gifts or do other

24   things with their money besides leave it in the bank?

25                   MR. RICHIE:    Your Honor, I'm going to

                                                                  15
 1   object.   She has not been designated as an expert in

 2   this case.     Besides, I don't think what other people do

 3   is relevant.     She can't render an opinion on whether or

 4   not this is usual or customary because she has not been

 5   designated as an expert.

 6                    THE COURT:    Is that correct, counsel?

 7                    MS. ALLEN:    No, he's not, Your Honor.   We

 8   designated protectively Ms. Graham and Mr. Martin simply

 9   because it was anticipated that they might have

10   testimony that was of an expert nature, so we did

11   designate them.

12                    MR. RICHIE:    All right.

13                    THE COURT:    Overruled.

14       Q     (By Ms. Allen)       Do you remember my question,

15   Ms. Graham?

16       A     Repeat it, please.

17       Q     Yes, ma'am.    You would agree that people

18   frequently choose to do other things with their money,

19   not just leave it in the bank?

20       A     Yes.

21       Q     And it's not uncommon that parents have a

22   relationship of trust and confidence with their child,

23   right?

24       A     I would assume so, yes.

25       Q     And sometimes those parents even make gifts to

                                                                   16
 1   those children with whom they have relationships of

 2   trust and confidence; don't they?

 3       A       I would assume so.

 4       Q       Well, you've seen that, right, in your

 5   practice?

 6       A       Yes.

 7       Q       That's what I'm really asking is you've seen

 8   that?

 9       A       Yes.

10       Q       And it's not uncommon, right?

11       A       No.

12       Q       And there's nothing wrong or illegal with that

13   because if there were you would be sounding the alarm;

14   wouldn't you?

15       A       Correct.

16       Q       And you didn't sound any alarms with regard to

17   Mrs. Wade; did you?

18       A       Not necessarily.     What are you asking?

19       Q       You didn't raise any alarms, there were no red

20   flags waved for you or bells went off when you saw that

21   there was at least an elimination of interest in favor

22   of Johnny and Amanda; that wasn't something that you

23   perceived was wrong or illegal or needed to be reported,

24   right?

25       A       Illegal, no.

                                                                17
 1       Q    Did it need to be reported somewhere?

 2       A    I think it probably should have been done.

 3       Q    Explain to --

 4       A    Go ahead.

 5       Q    No, no.    If you need to finish your answer, by

 6   all means go ahead.

 7       A    It depends on the situation where you have a

 8   forgiveness of debt or a gift, you know, there are other

 9   various things.

10       Q    There you go.    It's right to say that if

11   you're going to properly report the results of a loan

12   restructure you need to understand exactly what was

13   done, right?

14       A    Yes.

15       Q    And so did you interview Mrs. Wade or ask her

16   what exactly did you do, I need to understand exactly

17   what you did in order to report this properly?

18       A    No.    I just went off the information provided

19   to me.

20       Q    So you didn't feel it was necessary to delve

21   further into the matter, right?

22                   MR. RICHIE:   Your Honor, I'm going to

23   object because it calls for facts not in evidence.       Ms.

24   Graham said she didn't even know there was a reduction

25   in principal.   I don't know how she would have commented

                                                                18
 1   on it or reported it.     Assumes facts not in evidence.

 2                     THE COURT:    I'm going to overrule that

 3   objection and let her answer the question.

 4       A      I prepared the return based on the information

 5   provided to me.

 6       Q      (By Ms. Allen)       Isn't it accurate that so long

 7   as Johnny and Amanda were paying interest to Mrs. Wade

 8   she was having to turn around and pay part of that to

 9   the IRS?

10       A      Yes.

11       Q      And it wouldn't surprise you if she did not

12   like to take money from her son and turn around and pay

13   it to, or part of it to the IRS, right?

14                     MR. RICHIE:    Objection.   That calls for

15   facts not in evidence and speculation.

16                     THE COURT:    Sustained.

17       Q      (By Ms. Allen)       There has been a suggestion on

18   your direct examination that one could not save tax

19   money by refusing to take income; do you remember that?

20   That is that you don't have a net savings there because

21   your income is going to be X and your tax is going to be

22   Y and there is always going to be a positive there,

23   right?    Well, wasn't that the point Mr. Richie was

24   making?

25       A      Yes.

                                                                    19
 1       Q       Wasn't the point he was making is that nobody

 2   would say I'm not going to take this money from you in

 3   order to save on taxes, right?

 4       A       That was the assumption, yes.

 5       Q       Okay.   I want to understand is it fair to say,

 6   when we look at those figures, that if Mrs. Wade's

 7   decision was I don't want to take money from Johnny and

 8   pay part of it to the IRS, that would be a valid reason

 9   for her to make the decision not to take the money,

10   right?

11                   MR. RICHIE:    Objection, Your Honor.

12   Calls for speculation and assumes facts not in evidence.

13                   THE COURT:    Sustained.

14       Q       (By Ms. Allen)    You never perceived that there

15   was a default under either the promissory note or the

16   modification agreement; did you?

17                   MR. RICHIE:    Objection, Your Honor.     This

18   witness is not qualified to interpret defaults and she

19   has not been called upon to render an opinion on that.

20                   THE COURT:    You may rephrase your

21   question and ask if she's aware of any missed payments.

22       Q       (By Ms. Allen)    Ms. Graham, are you aware that

23   a single payment was ever not paid that was due under

24   the note or the modification?      Do you understand my

25   question?

                                                                  20
 1       A     I was not aware of anything, no, as I was

 2   going by what the client provided me.    I wasn't privy to

 3   when payments were actually received or paid.

 4       Q     Mrs. Wade certainly never said to you, Ms.

 5   Graham, there's been a default on the note.     Right?

 6       A     No.

 7       Q     You never gained any independent knowledge on

 8   your own nor her to suggest there was ever a default on

 9   the note or the modification, right?

10       A     No.

11       Q     Just to be clear, we're asking about someone

12   else's handwritten notes.    Don't want to go back through

13   that.   Mr. Martin has already explained his own notes,

14   but is it fair to say you're not suggesting to the

15   ladies and gentlemen that conversations didn't occur?

16       A     No.   I probably spoke with Mr. Martin on

17   numerous occasions.

18       Q     And probably even on the occasions he recalls

19   even though you can't recall them, right?

20       A     I don't recall the specifics of the

21   conversation.   I do know that the modification was not

22   my recommendation.    Now, maybe we discussed her sources

23   of income and what was causing her to pay tax, which was

24   99 percent interest income.

25                   MS. ALLEN:   Pass the witness, Your Honor.

                                                               21
 1                    C E R T I F I C A T E

 2   STATE OF TEXAS          )

 3   COUNTY OF BURNET        )

 4       I, VICKI K. KANEWSKE, Official Court Reporter in

 5   and for the County Court at Law of Burnet, Burnet

 6   County, State of Texas, do hereby certify that the above

 7   and foregoing contains a true and correct transcription

 8   of all portions of evidence and other proceedings

 9   requested by counsel to be included in this volume of

10   the Reporter's Record in the above-styled and numbered

11   cause, all of which occurred in open court or in

12   chambers and were reported by me.

13       I further certify that this Reporter's Record of

14   the proceedings truly and correctly reflects the

15   exhibits, if any, requested to be included.

16       I further certify that the total cost for the

17   preparation of this Reporter's Record is $3,937.50 and

18   has been paid for by Graves Dougherty Hearon & Moody.

19       GIVEN UNDER MY HAND AND SEAL OF OFFICE this the

20   12th day of May, 2015.

21                    /s/Vicki K. Kanewske

22   VICKI K. KANEWSKE, TEXAS CSR NO: 2159; EXPIRES: 12-31-16

23     Official Court Reporter, Burnet County Court at Law

24      220 S. Pierce Street, Burnet, Texas   78611

25   512-715-5244; Fax: 512-715-5226;Email:Vkaykan@live.com

                                                              231
                        03-15-00100-CV

 1                    REPORTER'S RECORD

 2                   VOLUME 3 OF 4 VOLUMES
                                                           FILED IN
                                                    3rd COURT OF APPEALS
 3    CAUSE NO:   P9127/COURT OF APPEALS   NO: 03-15-00100-CV
                                                         AUSTIN, TEXAS
                                                    3/18/2015 10:35:27 AM
 4   IN THE MATTER OF                      IN THE COUNTY COURT
                                                        JEFFREY D. KYLE
                                                             Clerk
 5   THE ESTATE OF                         AT LAW

 6   EDELL WADE                            BURNET COUNTY, TEXAS

 7

 8

 9

10

11                        EXHIBITS

12

13

14

15

16        On the 11th day of April, 2014, the foregoing

17   proceedings came on to be held in the above-titled and

18   numbered cause before the HONORABLE RANDY SAVAGE, Judge

19   presiding at Burnet, Burnet County, Texas.

20        Proceedings reported by computerized stenotype

21   machine.

22

23

24

25

                                                                    1
 1                       EXHIBIT INDEX

 2   Plaintiff's Trial Exhibits:

 3   NUMBER   DESCRIPTION            OFFERED   RECEIVED   VOL

 4   7        Payments made          (trial not transcribed)

 5   9        Power of Attorney      (trial not transcribed)

 6   11       Modification Agreement (trial not transcribed)

 7   38       File from Michael Martin(trial not transcribed)

 8

 9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

                                                                2
    •
        ·. ·
          ;
               ..    ,
                    ,I
                                                                  04/1~007        3:05:54 PM Page 2

0        • .tiELL WADE ..JOHNNY WADE

                         Data          Payment     Interest           Principal             Balance
            29 06/0812008              1,849.00     478.17          1,372.83             284,331.32
            30 06/0812008              1,849.00     473.89          1,376.11             282,956.21
            31 07/0812008              1,849.00     471.58          1,377.41             281,578.80
            32 08/DBl2008              1,849.00     489.30          1,379.70             280,199.10
            33 09/08/2008              1,849.00     487.00          1,382.00             278,817.10
            34 10/08/2008              1,849.00     484.70          1,384.30             277,432.80
            35 11/08/2008              1,849.00     482.39          1,388.61             276,048.19
            38 12/0812008              1,849.00     480.08          1,388.92             274,667.27
         2008Totala                   22,188.00   S,672.62         16,615.38
             37 01/08/2009                                                               273,288.03
             38 02/0B/2009                                                               271,872.47
             38 03/0812009                                                               270,478.59
             40 04ID8/2009                                                               289,078.38
             41 05/0812009                                                               267,877.84
             42 08/08/2009                                                               288,274.97
             43 07/0812009                                                               284,889.76
             44 08/08/2009                                                               283,482.21
            46 09/08/2009                                                                282,052.31
            48 10/08/2009                                                                280,840.08
            47 11/0812009                                                                269,225.46
            '48 12/08/2009                                                               267,808.60
         2009Totala
               49
                01/0Bl2010
               50
                02/08/2010
               61
                03/0812010
               62
                04/08/2010
               63
                05/0812010
               54
                06/0812010
               56
                07/0812010
               68
                06/0812010
               67
                09IOBl2010

0           68 10/08l2010
            69 11/08/2010
            80 12/08/2010
         2010Tatala
               81        01/0812011   1,849.00
               82        02/08/2011   1,849.00
               83        03/08/2011   1,849.00
               64        04/08/2011   1,849.00
               85        05108/2011   1,849.00
               66        081D812011   1,849.00
               87        07/0812011   1,849.0Q
               88        08/08/2011   1,849.00
               69        08/08/2011   1,849.00
               70        10/08/2011   1,849.DD
               71        11/08/2011   1,849.00

                                                             PLAINTIFFS
                                                               EXHIBIT
                                                      I         :£:                          .Jew000321

0
 1                    C E R T I F I C A T E

 2   STATE OF TEXAS

 3   COUNTY OF BURNET

 4        I, VICKI K. KANEWSKE, Official Court Reporter in

 5   and for the County Court at Law of Burnet, Burnet

 6   County, State of Texas, do hereby certify that the above

 7   and foregoing contains a true and correct transcription

 8   of all portions of evidence and other proceedings

 9   requested by counsel to be included in this volume of

10   the Reporter's Record in the above-styled and numbered

11   cause, all of which occurred in open court or in

12   chambers and were reported by me.

13        I further certify that this Reporter's Record of

14   the proceedings truly and correctly reflects the

15   exhibits, if any, offered by the respective parties.

16        I further certify that the total cost for the

17   preparation of this Reporter's Record is $834 and has

18   been paid for by Mr. Don Richie, Attorney at Law.

19        GIVEN UNDER MY HAND AND SEAL OF OFFICE this the 3rd

20   day of March, 2015.

21                      /s/Vicki K. Kanewske

22   VICKI K. KANEWSKE, TEXAS CSR NO: 2159; EXPIRES: 12-31-16

23     Official Court Reporter, Burnet County Court at Law

24         220 S. Pierce, Burnet, Texas       78611

25   512-715-5244; Fax: 512-715-5226; Email Vkaykan@live.com

                                                               3
                        03-15-00100-CV

 1    Supplemental REPORTER'S      RECORD

 2                   VOLUME 3 OF 6 VOLUMES
                                                            FILED IN
                                                     3rd COURT OF APPEALS
 3   CAUSE NO:    P9127/COURT OF APPEALS    NO: 03-15-00100-CV
                                                         AUSTIN, TEXAS
                                                     5/14/2015 2:20:39 PM
 4   IN THE MATTER OF          )            IN THE COUNTY COURT
                                                       JEFFREY D. KYLE
                                                             Clerk
 5   THE ESTATE OF             )            AT LAW

 6   EDELL WADE                )            BURNET COUNTY, TEXAS

 7

 8

 9

10        EXCERPT TRIAL TESTIMONY OF LORI GRAHAM

11                          AND

12              TRIAL TESTIMONY OF AMANDA WADE

13

14

15

16

17

18

19

20              On the 1st day of October 2014, the following

21   proceedings came on to be held in the above-titled and

22   numbered cause before the HONORABLE RANDY SAVAGE, Judge

23   presiding, held in Burnet, Burnet County, Texas.

24              Proceedings reported by computerized stenotype

25   machine.

                                                                   1
 1                   A P P E A R A N C E S

 2   RICHIE & GUERINGER, P.C.

 3   100 Congress Avenue, Suite 1750

 4   Austin, Texas    78701

 5   512-236-9220

 6         BY:   MR. DON RICHIE

 7               MS. EMILY SEIKEL

 8         APPEARING ON BEHALF OF JAMES(BUD)WADE

 9

10   LAW OFFICE OF DON E. WALDEN

11   7200 North Mopac, Suite 300

12   Austin, Texas    78731

13   512-349-9595

14         BY:   MR. DON E. WALDEN

15         APPEARING ON BEHALF OF NANCY BURNS

16

17   GRAVES DOUGHERTY HEARON & MOODY

18   401 Congress Avenue, Suite 2200

19   Austin, Texas    78701

20   512-480-5600

21         BY:   MS. KATHRYN ALLEN

22   AND

23

24

25

                                                   2
 1               A P P E A R A N C E S   C O N T ' D

 2   STUBBS LAW OFFICE, PLLC

 3   202 N. Porter Street

 4   Lampasas, Texas     76550

 5   512-556-8970

 6       BY:     MR. EVAN STUBBS

 7       APPEARING ON BEHALF OF JOHNNY WADE AND AMANDA

 8       WADE, INDIVIDUALLY

 9

10   HILL, DUCLOUX, CARNES & DE LA GARZA

11   400 West 15th Street

12   Suite 808

13   Austin, Texas     78701

14   512-474-7054

15       BY:     MR. CLAUDE DUCLOUX

16       APPEARING ON BEHALF OF AMANDA WADE, EXECUTOR

17

18

19

20

21

22

23

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25

                                                         3
 1                         REPORTER'S RECORD

 2                   VOLUME 3 OF 6 VOLUMES

 3                     CHRONOLOGICAL INDEX

 4   PLAINTIFF'S WITNESSES:

 5   NAME:         Dir       Cross   Redir   Recross     Voir Dire   Vol

 6   Lori Graham              7                                       3

 7   Amanda Wade   22/56     168      200        228         54       3

 8   DEFENDANT'S WITNESSES:

 9   NAME:         Dir       Cross   Redir     Recross               Vol

10

11   Court Reporter's Certificate              Page 231               3

12

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                                                                          4
 1                  REPORTER'S RECORD

 2                 VOLUME 3 OF 6 VOLUMES

 3                  ALPHABETICAL INDEX

 4   WITNESSES:     Dir    Cross   Redir Recross Voir Dire   Vol

 5   Lori Graham             7                               3

 6   Amanda Wade   22/56    168     200    228     54        3

 7

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                                                                 5
 1                        REPORTER'S RECORD

 2                     VOLUME 3 OF 6 VOLUMES

 3                          EXHIBIT INDEX

 4   PLAINTIFF'S EXHIBITS:

 5   No:   Description                                Offered        Rec'd   Vol

 6   91     Checking account statement/Edell Wade            150     150     3

 7   92    Checking account statement/Amanda/Johnny Wade     155     155     3

 8   93     Checking account statement/Blacksheep            155     155     3

 9   94    Amortization chart                                228     228     3

10   95    Edell Wade taxes chart                            228     228     3

11   96    Payment reduction chart                           229     230     3

12   DEFENDANT'S EXHIBITS:

13   No:    Description                                    Offered   Rec'd    Vol

14   11    Amortization schedule                             132     132     3

15   21    Handwritten chart                                 226     226     3

16

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                                                                                   6
 1   of 6 and 6A and I want them back.

 2       Q     (By Mr. Richie)   You went to Pat Cavness's

 3   office.   Who did you go with?

 4       A     Nancy, Edell, Johnny and myself.

 5       Q     And you understood Pat Cavness was Edell

 6   Wade's lawyer that had been Charles Otto's lawyer as

 7   well; didn't you?

 8       A     Yes.

 9       Q     Why did you go to the office of Pat Cavness?

10       A     To arrange the sale of this property.

11       Q     And that was in January of 2004?

12       Q     I believe so.   I don't have an independent

13   recollection of the date but it would have been around

14   that time.

15       Q     And after meeting with Pat Cavness and after

16   he drafted some documents, the representation of Pat

17   Cavness was terminated; wasn't it?

18       A     We ceased using him.   He wasn't called up and

19   fired.

20       Q     He was representing Edell Wade; wasn't he?

21       A     Yes, he was.

22       Q     But you decided not to use him any more,

23   right?

24       A     I did decide not to use Pat any more.

25       Q     Can you tell the jury why you decided not to

                                                                55
 1   Honor.       We object.

 2                        THE COURT:   Overruled.

 3          You may answer what you saw.

 4          A      I know he checked Otto's will, which is

 5   Edell's husband, to make sure that Edell had the ability

 6   to sell the property and I believe he questioned the

 7   price.

 8          Q      And then you left that meeting?

 9          A      Yes.

10          Q      And Ms. Nancy Wade reported to you that he had

11   made a derogatory comment.         What was the derogatory

12   comment?

13          A      She reported that sometime later on to me.

14   Nancy said, Hey, Pat said something about you.

15          Q      What was it that she reported to you?

16          A      She kind of did an impersonation of Pat, with

17   a little bit of a country twang, and my memory is she

18   said something like that he said to her, Do y'all like

19   her?       And it was obvious to me based on her

20   interpretation of the comment that Pat did not like me.

21   And my understanding from Nancy was that Nancy said,

22   Yes, we love her.

23          Q      So based upon that representation from Nancy

24   Burns, you hired a new law firm to document this deal;

25   didn't you?

                                                                   57
 1       A    There was another law firm brought in.

 2       Q    You hired them?

 3       A    Okay.

 4       Q    You went to Austin; didn't you?

 5       A    No, I didn't.

 6       Q    Did you call the David Armbrust firm in

 7   Austin, Armbrust & Brown?

 8       A    I contacted Armbrust & Brown.

 9       Q    Mrs. Edell Wade did not do that; did she?

10       A    Not as far as I know.

11       Q    Did you ever take Mrs. Wade to the office of

12   Armbrust & Brown in Austin?

13       A    No, I did not.

14       Q    Did one of the lawyers from that firm come out

15   to Burnet or Lampasas to meet with Edell Wade?

16       A    Not that I know of.

17       Q    Again, let's just cut to the chase here.    No

18   lawyer from that firm talked to Edell Wade, met with

19   Edell Wade, explained the transaction to Edell Wade or

20   got any information from Edell Wade about the sale of

21   the ranch, the 475 acres and all the farm implements and

22   livestock to you and Johnny for $500,000, right?

23       A    Not that I know of.

24       Q    In fact, the communications from Armbrust &

25   Brown are to you?

                                                               58
 1       A    Well, I have their communications to me, yes.

 2       Q    And the bill from Armbrust & Brown is to you?

 3       A    Yes.

 4       Q    And you paid their legal fees?

 5       A    I did.

 6       Q    Had you formed an opinion in your own mind

 7   about that time whether Edell Wade -- and I'm talking

 8   about the time that this transaction is actually getting

 9   signed, had you formed in your mind an understanding

10   that Edell Wade trusted you?

11       A    I don't know that I ever had thought about

12   that.

13       Q    Did she have confidence in you?

14       A    I don't know.

15       Q    Well, you know that by 2007 she granted a

16   power of attorney in your favor.   You know that, right?

17       A    Yes, I know that.

18       Q    That would be a pretty clear indication that

19   she had trust and confidence in you in 2007, right?

20       A    I suppose so.

21       Q    As an attorney would you ever give a power of

22   attorney, a statutory power of attorney to anybody that

23   you didn't have trust and confidence in?

24       A    No.

25       Q    Let me show you Exhibit 2, a warranty deed

                                                              59
 1   to argue that you had a default because of the delay in

 2   payments.    And the reason for it is because of the

 3   reasons I've stated.      The consequences of going into

 4   those areas would be more devastating than the error of

 5   my instruction, in my opinion.

 6       All right.       Bring the jury back in.

 7                          (Jury in.)

 8                      THE COURT:    You may proceed.

 9                      MR. RICHIE:    Thank you, Your Honor.

10       Q       (By Mr. Richie)      Ms. Wade, at some point after

11   you moved on to the ranch there was a lock put on the

12   gate, a chain and a lock; is that correct?

13       A       Yes.

14       Q       Can you tell the jury when that gate became

15   locked?

16       A       I don't know.

17       Q       Was it after 2005?

18       A       I don't recall when it got a lock on it.

19       Q       Did you give keys to Bud Wade?

20       A       Did I give Bud a key?      No.

21       Q       Did you give Gwen a key?

22       A       No.

23       Q       Did you give anybody a key other than Nancy

24   Wade?

25       A       Edell had numerous copies of the key in her

                                                                 116
 1   house.     Emma and John had keys when they came.     Heidi,

 2   Charles and Kim, the propane guy, the diesel guy, the

 3   trapper.

 4       Q       But not Bud Wade?

 5       A       No, Bud didn't have a key.

 6       Q       Not Gwen Wade?

 7       A       No.

 8       Q       And not Sue?

 9       A       No.

10       Q       And not Charlene?

11       A       No.    Weldon had gotten a key one day.

12       Q       When I'm talking about the gate I'm actually

13   talking about a swinging gate, had a lock put on it and

14   a chain, right?

15       A       You're asking me if I did it?

16       Q       No.    Have you seen it though?

17       A       Yes.

18       Q       In addition to that there's something that is

19   referred to as the gap.      Have you heard that reference?

20       A       Yes.

21       Q       What do you understand the reference to the

22   gap to mean?

23       A       There was a gap next to the gate.

24       Q       So there's a gate, a fence post and then

25   there's a length of fence between that fence post and

                                                                    117
 1   the next one that's called the gap?

 2         A   Yes.

 3         Q   And a lock was placed on that as well; wasn't

 4   it?

 5         A   I don't know.

 6         Q   Let me show you Exhibit 50 and ask you if you

 7   can identify that as a chain and lock on this gap at the

 8   ranch?

 9         A   If you're telling me that that's what this is,

10   then I'm not going to dispute it.   It looks like a fence

11   post with a lock on it to me.   I can't say that that's

12   on our place.

13         Q   Have you seen a lock and a chain on the gap at

14   the ranch?

15         A   Not that I recall, no.

16         Q   If there is one did you give a key to Bud?

17         A   No.

18         Q   Did you give a key to Nancy?

19         A   No.

20         Q   Did you --

21         A   I'm sorry.   Nancy had a key.   I don't know if

22   it was to this or a key to the gate.

23         Q   Did Weldon have a key?

24         A   I know Weldon came and got keys.

25         Q   Well, he came to visit at one point and he had

                                                               118
 1   to get a key to get on the land.      Do you remember Nancy

 2   talking about that?

 3          A     I know Nancy talked about that.

 4          Q     That's what you're talking about, right?

 5          A     I remember Weldon coming to the hardware store

 6   and picking up a key, yes.

 7          Q     And that is what he had to do to get on the

 8   place.     He had to come to a hardware store and get a

 9   key?

10          A     No, not necessarily.

11          Q     How would he have gotten in?

12          A     There were keys hanging on the fence post that

13   anybody who had asked could have taken the key off the

14   fence post.

15          Q     And that fence post is actually behind the

16   fence; wasn't it, so there's a road then a fence

17   blocking the entry to the ranch and then a fence post

18   between that fence and the property.        And that's where

19   you're talking about keys hanging on a fence post?

20          A     I don't really have any idea what you just

21   said.      There was a fence post then the fence.

22          Q     Was it a fence post inside the fence, in front

23   of the fence or behind the fence?

24          A     The fence post was the fence.

25          Q     You believe the fence post, the fence itself,

                                                                    119
 1   had keys hanging right off of it.      That's your

 2   testimony?

 3         A     On the fence post, yes.

 4         Q     And that anybody walking up the road could get

 5   those keys?

 6         A     Yes.

 7         Q     If Bud Wade says that isn't true, that he had

 8   to actually open the gap and get in, or climb over the

 9   fence to get those keys, you're going to tell the jury

10   that's not accurate?

11         A     Can you tell me what Bud is going to say

12   again?

13         Q     That the keys were inside the fence, not

14   outside the fence and not on the fence.

15         A     Well, maybe it's semantics.   If this is the

16   fence and this is the street side, this is the house

17   side.     Just say this whole thing is a fence post, the

18   key hung on the inside of the fence post, but it wasn't

19   where you would have to climb over the fence to get to

20   it.     You could just pick them up.

21         Q     Well, what was the purpose of giving anybody a

22   key like Emma or her children if in fact that key was

23   just hanging right there on the fence post.      Why did you

24   give them a key?

25         A     It's certainly more convenient.

                                                                120
 1          Q   What was?

 2          A   To have a key in your hand as opposed to

 3   walking to the fence post and picking it up.

 4          Q   Was there a sign that said, Hey, there's a key

 5   over here anybody that needs to get in?

 6          A   No.

 7          Q   So if EMS rolled up there because mama fell

 8   and hurt herself and set off her alarm while you and

 9   Johnny were at the stores, would they have to use a bolt

10   cutter to get in?

11          A   They probably could have rolled over the fence

12   pretty easily and gotten in there without using a bolt

13   cutter over the maybe four or five wire barbed fence, or

14   they could have cut the bolt cutter on the lock on the

15   gate.

16          Q   But the emergency unit didn't know there was a

17   key on the fence post; did they?

18          A   Not that I know of.

19          Q   Would you agree that Edell Wade turned 90

20   somewhere around 2005, 2006?

21          A   It would have been 2005.

22          Q   When was her birthday?

23          A   March 30th.

24          Q   Okay.   So March 30th, 2005 she became 90 years

25   old?

                                                              121
 1       A    I believe so.

 2       Q    Was there a birthday party for her?

 3       A    I believe so.

 4       Q    And did someone ask you -- Bud Wade, Nancy

 5   Wade -- somebody ask you if they could use the ranch to

 6   have the birthday party?

 7       A    Nobody asked me.    I became aware of it but

 8   nobody asked me.

 9       Q    Did you tell them they could not have the

10   party at the ranch?

11       A    Ultimately yes.

12       Q    Family gatherings had been at that ranch

13   before you moved on it; hadn't they?

14       A    Yes.

15       Q    And now is this the first time that you know

16   of where somebody had been told, You can't have a family

17   gathering on the ranch?

18       A    I don't know.

19       Q    You don't know of one before that; do you?

20       A    No, I don't know of one before that.

21       Q    Was there a 90th birthday party?

22       A    Yes.

23       Q    Did you go to it?

24       A    I believe so.

25       Q    Did Johnny go to it?

                                                             122
 1       A    I believe so.

 2       Q    And Edell went to it?

 3       A    Yes.

 4       Q    She could not have her 90th birthday party at

 5   home even though she had a life estate, right?

 6       A    That's not exactly correct.

 7       Q    You told the family members, I don't want you

 8   to have a birthday party on the ranch; didn't you?

 9       A    That's not exactly correct.

10       Q    Well, what did you tell them?

11       A    What did I --

12       Q    What did you tell the family members who

13   wanted to have a party at the ranch?

14       A    I told them that they couldn't have it there.

15       Q    That actually happened again on her 95th

16   birthday, the year of her death; didn't it?

17       A    No.

18       Q    Wasn't there another birthday party that year?

19       A    Yes, there was.

20       Q    Was it at the ranch?

21       A    No, it was not.

22       Q    Did you go to the 95th birthday party?

23       A    No, I did not.

24       Q    Did Johnny go to the 95th birthday party?

25       A    No, he did not.

                                                          123
 1       Q    Did Edell go to the 95th -- I'm sorry.     Did

 2   Emma go to the 95th birthday party?

 3       A    I don't know.

 4       Q    Do you know Emma was in town; don't you?

 5       A    I don't remember.

 6       Q    You know Kim was in town; don't you?

 7       A    I don't remember.

 8       Q    Well, in March of 2010 did Emma and Kim stay

 9   at the ranch when they came to town in March?

10       A    If they had come to town they would have

11   stayed at the ranch.   Whether they were there I don't

12   independently remember.

13       Q    I want to now ask you -- we talked about the

14   fact that you agree with me that there was a

15   relationship of trust and confidence between you and

16   Edell Wade at least as early as 2007; do you remember

17   that testimony?

18       A    Yes.

19       Q    There was also a relationship of trust and

20   confidence between Edell Wade and Johnny Wade?

21       A    I believe so.

22       Q    And that was in place since at least 2007?

23       A    I'm sorry.    I didn't hear you.

24       Q    Was that in place as of at least 2007?

25       A    I believe so.

                                                               124
 1       Q     And continued up until the time of her death?

 2       A     The relationship with Johnny?

 3       Q     The relationship of trust and confidence

 4   between you and Edell Wade?

 5       A     Yes.

 6       Q     And the relationship between Edell Wade and

 7   Johnny Wade, the trust and confidence relationship, that

 8   continued through the date of her death?

 9       A     Yes.

10       Q     And you acted on that relationship of trust

11   and confidence.   You took information to Lori Graham for

12   example, right?

13       A     I don't know if that's acting on the

14   relationship of trust and confidence.     That is helping

15   Mrs. Wade.

16       Q     What did you help her do with respect to Lori

17   Graham?

18       A     I took Mrs. Wade's tax items to Lori Graham.

19       Q     Did you help Mrs. Wade gather the information

20   to take to Lori Graham?

21       A     I may have.

22       Q     And then you took her to Lori Graham?

23       A     I believe I did.

24       Q     And you picked up the tax returns from Lori

25   Graham?

                                                                 125
 1       A       No.

 2       Q       You don't recall that.   Were you there?

 3       A       I don't recall it.

 4       Q       In 2009 did you have an occasion again to talk

 5   with Michael Martin about preparing a modification to

 6   the note?

 7       A       I made -- I know I spoke with him and I made

 8   an appointment with his office.

 9       Q       To modify the note?

10       A       Yes.

11       Q       And that's the promissory note we've been

12   talking about that you and Johnny gave Edell Wade back

13   in 2004 to pay for the ranch?

14       A       Yes.

15       Q       The one that had 2 percent interest?

16       A       Right.

17       Q       And had payments -- here is a copy of the

18   note, Exhibit 4.     Do you see on the front page it says

19   the payments will be $1,848.10 each?

20       A       Yes.

21       Q       That's the note we're talking about?

22       A       I guess that's it.

23       Q       Is that he one you wanted to modify?

24       A       That was the note to be modified, yes.

25       Q       What were you seeking the modification to

                                                                 127
 1       Q    Johnny Wade, et ux.    That would be you, right?

 2       A    Yes.

 3       Q    And inside on his worksheet at the back is his

 4   work order that says:    The client.

 5       It says "client" doesn't it?

 6       A    Yes.

 7       Q    Johnny Wade, et ux.    That's you; isn't it?

 8       A    Yes.

 9       Q    And at this time Mrs. Wade would have been, in

10   2009, 94 years old; wouldn't she?

11       A    I believe so.

12       Q    Did you talk with Mr. Martin about the

13   modification?

14       A    At any time?

15       Q    Yes.

16       A    Yes.

17       Q    You knew it was happening, right?

18       A    Yes.

19       Q    And you had that relationship with her of

20   trust and confidence was still in place.   Mrs. Wade

21   still trusted you, right?

22       A    Yes.

23       Q    And she had confidence in you?

24       A    As far as I know.

25       Q    Did you know before the modification was

                                                             129
 1   signed that the principal was going to be reduced on the

 2   note?

 3       A       I knew that Mrs. Wade had expressed wanting to

 4   give Johnny a gift.    I did not know what or how much.

 5       Q       Did you consider when you heard about it, did

 6   you consider whether or not the modification would be

 7   fair to Edell Wade?

 8       A       I don't think I ever thought of it in terms of

 9   fairness.    It was something that she expressed that she

10   wanted to do.

11       Q       When she was 94?

12       A       Yes.

13       Q       Did you consider whether or not that

14   modification would benefit you?

15       A       It obviously benefited me.

16       Q       You would be paying less, right?

17       A       Yes.

18       Q       Therefore you would have more money?

19       A       Yes.

20       Q       And the price of the ranch, the original price

21   would be reduced by the amount of this principal

22   reduction, right?

23       A       The amount of the note was going to be

24   reduced.

25       Q       And the amount paid for the ranch therefore

                                                               130
 1   would be less?

 2       A      I guess you could put it that way.

 3       Q      Would that also benefit Johnny Wade?

 4       A      Yes.    The gift was really to him.

 5       Q      And Mrs. Wade would be getting les money than

 6   if you paid the full principal on the note as set forth

 7   in 2004?

 8       A      Yes.

 9       Q      And there would be less in the estate to

10   divide to my clients, Nancy Wade, Sue Meuth, than if you

11   paid the full amount on the note?

12       A      Yes.

13       Q      You wrote a note.      You saw Lori Graham this

14   morning and you wrote a note to her.       She says it was

15   2010.

16                     MR. RICHIE:   Can you put that up, please.

17   Do you know what exhibit this is?       Seven.   Okay.

18       Q      (By Mr. Richie)      I don't know if you can see

19   it, but let me show you up close what it looks like.          Is

20   that your handwriting where it says:       Lori, we paid Mrs.

21   Wade house payments with interest through May.           She then

22   relieved us of our interest and changed our note to

23   principal only.     She only has interest income from us

24   for five months.

25       Is that your handwriting?

                                                                    131
 1       A    Yes.

 2       Q    Below that it says, Did not make last

 3   estimated payment.

 4       Is that your handwriting?

 5       A    It doesn't look like it, no.

 6       Q    Everything above that is yours?         I'm not

 7   talking about what's on the left.      Just this part from

 8   the line up.

 9       A    Yes.

10       Q    And there's no mention in there of a principal

11   reduction; is there?

12       A    That's correct.

13       Q    And there's no mention of a gift?

14       A    That's correct.

15                   MR. RICHIE:     Now would you go to the

16   bottom of the modification agreement, please.

17       As part of Exhibit 38, Your Honor, I'm going to go

18   ahead and mark it as Exhibit 11 and offer it.

19                   THE COURT:     Any objection to Plaintiff's

20   Exhibit 11?

21                   MR. DUCLOUX:     No objection.

22                   THE COURT:    Defendant's Exhibit 11 will

23   be received into evidence.

24       Q    (By Mr. Richie)       Do you have that modification

25   agreement in front of you?

                                                                  132
 1         Q     Reviewed.   Reviewed.   You read them?

 2         A     I recall being sent one draft.

 3         Q     And commenting, talking with Mr. Martin about

 4   it?

 5         A     I did not talk with Mr. Martin about it.

 6         Q     The number that the note is modified to is

 7   $227,528.    Do you see that number?

 8         A     Yes.

 9         Q     Do you know where that number came from?

10         A     Not necessarily, no.

11         Q     Well, did you give Mr. Martin that number?

12         A     No.

13         Q     Did Johnny give Mr. Martin that number?

14         A     Not that I know of.

15         Q     Did you do a calculation that resulted in

16   $227,528?

17         A     I don't think so.

18         Q     If I want you to assume with me -- you will

19   hear this later from some other witnesses -- but I want

20   you to assume with me that the difference between the

21   unpaid balance of the note in May of 2009 -- I'm sorry,

22   the balance on the original note after applying the

23   $150,000 prepayment was somewhere around $267,000.       Just

24   assume that.

25         A     Okay.

                                                                134
 1         Q     If that's true, about a $40,000 difference.     I

 2   think it comes up to like $39,800 -- $848.       Did you know

 3   that the amount of what you call a gift and I call a

 4   principal reduction, was almost $40,000 before it

 5   happened?

 6         A     I don't think I knew the amount, the exact

 7   amount, no.

 8         Q     Did you know the magnitude, did you know it

 9   was $ 40,000?

10         A     I just said I didn't know the amount, so, no.

11         Q     And you didn't consider whether or not it

12   would be fair to Mrs. Wade, Edell Wade?     I'll rephrase

13   it.

14         Did you consider it to be beneficial to Mrs. Wade,

15   financially beneficial?

16         A     I can't say that I did.

17         Q     Did you talk to Bud Wade about it?

18         A     No.

19         Q     Did you talk to Nancy Wade Burns about it?

20         A     No.

21         Q     Did you talk to any of the Wade children about

22   it?

23         A     I certainly talked at some point to Johnny

24   about it.

25         Q     Fair enough.   Other than Johnny, anyone else?

                                                                 135
 1       Q       It would be kind of hard to miss; wouldn't it,

 2   when you're looking at the document?

 3       A       If you say so.

 4       Q       Well, can you miss it?

 5       A       I certainly didn't understand or realize that

 6   that's what that said.       It's hard for me to say what I

 7   thought five years ago.       If I had seen it and noticed it

 8   and realized it was a reduction in principal, I'm sure I

 9   would have called it out to Mike Martin.      I would have

10   certainly reminded him to make sure these were right.

11       Q       Do you recall what other things you called out

12   to Mike Martin when you talked to him about a previous

13   draft of this modification?

14       A       The one thing I remember talking to Mike

15   Martin about regarding this, and I don't remember at

16   what point in time this was, but he informed me for some

17   reason they were lowering the payment from the 1,848.10

18   to 1,200.    That's the only conversation I remember

19   having with Mike Martin.

20       Q       $1,200 a month?

21       A       Yes.

22       Q       From $1,848 a month?

23       A       Yes.

24       Q       So about a one-third reduction in the monthly

25   payment?

                                                                   138
 1       A       Approximately, yes.

 2       Q       And you would agree with me that is a benefit

 3   to you and Johnny?

 4       A       Yes.

 5       Q       Lower payments, more money for you?

 6       A       Sure.

 7       Q       Could you have said to Edell Wade or Mike

 8   Martin, I will not accept a modification that reduces

 9   interest to zero.       Could you have said that?

10       A       Of course I could.

11       Q       Could you have said, I will not accept a

12   reduction in payments from $1,848 a month to $1,200 a

13   month?

14       A       Of course I could.

15       Q       And you told us today, and I think you said

16   previously in your testimony, you didn't consider

17   fairness with respect to this transaction, fairness to

18   Mrs. Wade or the other children, the other Wade

19   children; did you?

20       A       I certainly didn't consider the other Wade

21   children.    I'm not saying that I thought this was unfair

22   to Mrs. Wade.       It just was never a factor that entered

23   my mind.

24       Q       Just didn't consider it at all; did you?

25       A       I didn't.    I didn't think if Mrs. Wade wanted

                                                                   139
 1       Q     And it would be out of character for Johnny

 2   Wade to send information like this to his siblings;

 3   wouldn't it?

 4       A     Mrs. Wade would have hung us out to dry.

 5       Q     Was it out of character for Johnny Wade to

 6   send this type of information to his siblings?

 7       A     Ever?

 8       Q     Well, with respect to transactions with Mrs.

 9   Wade.   Y'all didn't send a note -- the warranty deed to

10   any of the other siblings; did you?

11       A     I disagree with that.

12       Q     Who did you send it to?

13       A     I believe it went to Nancy.

14       Q     At the time that it was signed?

15       A     I believe I sent it to Nancy to take Mrs. Wade

16   to have it signed.

17       Q     All right.   With the exception of Nancy did

18   you send the warranty deed to Bud Wade?

19       A     No.

20       Q     Any of the other Wade children at all?

21       A     Did I send the warranty deed to any of the

22   other children?

23       Q     Right.

24       A     No.

25       Q     Did you send the promissory note, a copy of

                                                              141
 1   that to the other children?

 2       A    With the exception of Nancy?

 3       Q    Let's leave Nancy and Johnny out of this.   The

 4   Wade children I'm talking about Emma, Charlene, Sue and

 5   Bud and Weldon.

 6       A    No.

 7       Q    And you didn't send them the closing

 8   agreement?

 9       A    That's correct.

10       Q    You just didn't send them any information

11   about the sale; did you?

12       A    That's correct.

13       Q    And neither did Johnny?

14       A    As far as I know.

15       Q    And neither did Edell Wade, as far as you

16   know?

17       A    As far as I know Edell did not send any paper

18   work to any of them.

19       Q    And your lawyers in Austin, Armbrust & Brown,

20   they didn't send this information to any of the other

21   Wade children; did they?

22       A    As far as I know, no.

23       Q    After this modification was signed you

24   continued to make payments but they are $1,200 a month?

25       A    Yes.

                                                             142
 1                    C E R T I F I C A T E

 2   STATE OF TEXAS          )

 3   COUNTY OF BURNET        )

 4       I, VICKI K. KANEWSKE, Official Court Reporter in

 5   and for the County Court at Law of Burnet, Burnet

 6   County, State of Texas, do hereby certify that the above

 7   and foregoing contains a true and correct transcription

 8   of all portions of evidence and other proceedings

 9   requested by counsel to be included in this volume of

10   the Reporter's Record in the above-styled and numbered

11   cause, all of which occurred in open court or in

12   chambers and were reported by me.

13       I further certify that this Reporter's Record of

14   the proceedings truly and correctly reflects the

15   exhibits, if any, requested to be included.

16       I further certify that the total cost for the

17   preparation of this Reporter's Record is $3,937.50 and

18   has been paid for by Graves Dougherty Hearon & Moody.

19       GIVEN UNDER MY HAND AND SEAL OF OFFICE this the

20   12th day of May, 2015.

21                    /s/Vicki K. Kanewske

22   VICKI K. KANEWSKE, TEXAS CSR NO: 2159; EXPIRES: 12-31-16

23     Official Court Reporter, Burnet County Court at Law

24      220 S. Pierce Street, Burnet, Texas   78611

25   512-715-5244; Fax: 512-715-5226;Email:Vkaykan@live.com

                                                              231
                          03-15-00100-CV

                               Clerk's Record
                               VOLUME10F2

                       Trial Court Cause Number P9127
                              In the County Court
                           Of Burnet County, Texas
                       W.R. SAVAGE,Judge Presiding
•••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••

                    IN THE MATTER OF THE ESTATE OF
                             EDELL WADE

                               Appealed to the
                Court of Appeals for the Third District of Texas,
                               at Austin, Texas

•••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••

Attorney for Appellant: SHELDON E. RICHIE
Address: 100 CONGRESS AVE, SUITE 1750 - AUSTIN, TEXAS 78701
Telephone No.: 512-236-9220
Fax No.: 512-236-9230
E-mail address: srichie@rg-austin.com
State Bar No.: 16877000
Attorney for: JAMES E. WADE, Appellant(s)

•••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••

                                                  JANET PARKER,
                                                  Burnet County Clerk
                                                  220 South Pierce Street
                                                  Burnet, Texas 78611
                                          CAUSE NO. P9127

ESTATE OF EDELL WADE, DECEASED                 §             IN THE COUNTY COURT AT LAW

                                               §             OF

                                               §             BURNET COUNTY, TEXAS

                                               INDEX

Name                                                                                Volume 1   Page

Defendants’ Johnny and Amanda Wade’s Amended Motion For Partial                                5
Summary Judgment Concerning The 2004 Sale (Pertaining to All Claims)
      Filed March 20, 2014

Defendants Johnny Wade’s and Amanda Wade’s Traditional and No Evidence                         166
Motion for Partial Summary Judgment on Plaintiff James Wade’s Claims for Attorney’s
Fees Against Defendants in their Individual Capacities
      Filed March 20, 2014

Plaintiff's Motion For Continuance And, In The Alternative, Response To Defendants'            279
Amended Motion For Partial Summary Judgment Concerning The 2004 Sale
        Filed April 7, 2014

Order Granting Defendants' Amended Motion For Partial Summary Judgment                         611
Concerning The 2004 Sale (Pertaining to All Claims)
      Filed April 14, 2014

Plaintiff's Emergency Motion To Reconsider Order Granting Defendants' Amended                  612
Motion for Partial Summary Judgment Concerning The 2004 Sale or Alternatively,
To Sever Plaintiff's Claims Concerning The 2004 Sale Or For Permission To Appeal
Interlocutory Order
        Filed April 23, 2014

Supplement to Plaintiff's Emergency Motion To Reconsider Order Granting                        675
Defendants' Amended Motion For Partial Summary Judgment Concerning the
2004 Sale or, Alternatively, To Sever Plaintiff's Claims Concerning the 2004 Sale
or For Permission To Appeal Interlocutory Order
       Filed April 24, 2014

Order                                                                                          762
        Filed April 29, 2014

Plaintiff's Third Amended Original Petition                                                    765
        Filed May 2, 2014

Motion for Exclusion of Evidence (For Plaintiff’s Failure to Respond to Discovery Requests)    820
      Filed May 7, 2014
Defendants’ Hearing Presentation in Support of Motion for Exclusion of Evidence              848
      Filed May 20, 2014

Defendants’ Motion for Partial Summary Judgment (as to all claims for relief based           950
on: default” on loan)
       Filed May 22, 2014

Defendants’ Motion for Partial Summary Judgment (as to All Tort Claims, based                963
on Economic Loss Rule)
      Filed May 22, 2014

Defendants’ Response to Plaintiffs’ Traditional and No-Evidence Motion for Summary           975
Judgment on their Claims for Breach of Fiduciary Duty and Conspiracy with Exhibits A-G
      Filed June 5, 2014

Amanda Wade’s Response (in her capacity as Independent Executor) to Nancy Burns’             1063
No-Evidence Summary Judgment Motion on Affirmative Defenses
      Filed June 5, 2014

                                                                                  Volume 2
Response in Opposition to Plaintiff’s No-Evidence Motion for Partial Summary                 1122
Judgment and Nancy Burns’ Joinder (as to Affirmative Defenses and Couterclaims)
with Exhibits 1-25
       Filed June 5, 2014

Sixth Amended Answer To Plaintiff James E. Wade's Third Amended Original Petition            1263
and Second Amended Counterclaim of Johnny and Amanda Wade
       Filed July 15, 2014

Sixth Amended Answer to Plaintiff James E. Wade’s Third Amended original                     1275
Petition and Third Amended Couterclaim of Johnny and Amanda Wade
       Filed July 15, 2014

Fifth Amended Answer to Plaintiff Nancy Burns’ Amended Petition for Damages                  1296
for Breach of Fiduciary Duty and Second Amended Counterclaim
       Filed July 15, 2014

Order                                                                                        1314
        Filed July 29, 2014

Response to James Wade’s Motion for Continuance, and Motion for Leave to                     1315
Supplement Summary Judgment Proof
      Filed July 24, 2014

Verification Pages for Sixth Amended Answer and Third Amended Counterclaim                   1420
       Filed August 4, 2014

Consolidated Response of Johnny and Amanda Wade to Plaintiff’s Motion for                    1422
Traditional Summary Judgment on Defendants’ Counterclaims and Plaintiff’s Motion
to Dismiss Under Rule 91a
       Filed September 9, 2014
Response of Johnny and Amanda Wade to Plaintiff’s Motion for Show Cause Order     1534
for Contempt and to Levy Sanction Award
      Filed September 26, 2014

Charge Of The Court                                                               1539
      Filed October 6, 2014

Verdict                                                                           1541
       Filed October 6, 2014

Plaintiff James E. Wade's Motion For Judgment Non Obstante Verdicto               1559
        Filed October 15, 2014

Request For Denial Of Plaintiff's Motion For Judgment Non Obstante Verdicto and   1589
Defendants' Motion For Entry Of Judgment
      Filed October 22, 2014

Final Judgment                                                                    1599
       Filed November 17, 2014

Order Denying Plaintiffs' Motion For Judgment Notwithstanding The Verdict         1602
      Filed November 17, 2014

Plaintiff's Motion For New Trial                                                  1603
        Filed December 12, 2014

Order Denying Motion For New Trial                                                1633
      Filed January 26, 2015

James E. Wade's Notice Of Appeal                                                  1634
     Filed February 12, 2015

Plaintiff's Letter To Vicki Kanewske Requesting The Reporter's Record             1637
        Filed February 20, 2015

Plaintiff’s Request for Preparation of Clerk’s Record                             1640
        Filed February 20, 2015

Defendant’s Request for Preparation of Clerk’s Record                             1644
      Filed March 11, 2015

Defendant’s Letter to Vicki Kanewske Requesting Reporter’s Record                 1647
      Filed April 3, 2015

Bill of Cost                                                                      1649

Clerk’s Certification that Appellate Record is True and Correct                   1650
Amanda Wade                                                                                                                                 August          4,    20ll

                                             l                                                                                       3

      IN TilE: B9Tl'.'l'El OF
                                       Cl'.USi: NO.        p
                                                     •nl nt£
                                                               .. 1~7
                                                                    COUNTY COt."R'l' l'.T Ll'.W
                                                                                                    ,                     INDEX
                                                                                                            Appearances                           2
      lro!;:l.oL    WIWE                             •o'                                            '       Change Page                           92
      DECll.M!ED                                     •nmu;,..,.       COVN'l''l,   TEXAS
                                                                                                    ''      EXAMINATION
                                                                                                            Examination by Mr. Walden                  4
                               . . . . . ..... . .
                                             ~
                                                                                                    '       Examil"'8tion by Mr. Stubbs                90
                                       ORAL DEPOslT~Oll'
                                                     o•                                             7'      SIGNATURE SHEET                            93
                                           ~1'11>.11£
                                          AUO'.JS'I' 1,
                                                                 .. .
                                                               ;,au                                                                                          "'
                                                                                                     '
                                                                                                            NUMBER            DESCRIPTION         PAGE
                                                                                                  "n         1            FIRST AMENDED NOTICE OF    4
                                                                                                   ,
                   0""1.. DO:>'CSITJOOIf the P'bs Law DHice, 202 N. Porter
      Stre"'=• L'"'lP""•"'• ,.,.,...,, F"r"""'"'t to th2             A   Yes.
                                                                                                                  Q   Okay. And I am going to start by asking
ll
l2
      (512) 556-8970
                                                                                                   "
                                                                                                   l4        you to take a look at what I'll have the court
l3    AI   ~n         PRFSFNTo                                                                                                 ' FYhih' 1 whi h 'I re resent to
l4    Ms. Nancy Burns                                                                                        you is the First Amended Notice of Deposition, end

 16
                                                                                                   "         as ' yo      a\le see
                                                                                                                        (Deposition Exhibit No. 1 marked)
l7
                                                                                                   "
 ,
l8                                                                                                 19

                                                                                                   '"
                                                                                                                        MR. STUBBS: I'm going to get those
                                                                                                             documents for you.
                                                                                                                        MR. WALDEN: Okay. Okay.
20                                                                                                 2l
21                                                                                                 ,,           A    I don't think 1 have.
22                                                                                                              Q    (By Mr. Walden) Did - I'll wait until
 23                                                                                                "
                                                                                                   24        vour attomev Is back in the room.

 25
                                                                                                   .,               Ms. Wade, can I direct your attention to

 ESQ "!J.!.B&.     -                                                                I
                                                                                               EXHIBIT

                                                                                                  E
                                                                                                                                           ToH Free: 800.880.2546
                                                                                                                                           Facsimile: 512.328.8139

                                                                                                                                                         Suite 22.0
                                                                                                                                             3101 Bee Caves Road
                                                                                                                                                 Austln, TX 78746
                                                                                                                                          www.esaulresolutlons.com

                                                                                                                                                                     400
Amanda Wade                                                                                        August 4,            2011

                               ?0                                                            .,
        buying property, but we weren't receiving full use      l      And the comment was rude.
    '   and whatnot of ll                                       2        Q    What was it?                                      r
    '      Q   Did anybody suggest getting an appraisal                  A He -- he did not like me and he --
    '
    4   done?                                                   4  '     Q    Mr. Cavness didn't?
    5      A Not that I recall.                                    5     A Yes. And what Nancy told me that he said
    6      Q   Okay.                                               6   was, "Do you all like herr

    a       Q   Okay. And how did you arrive at the                a   had related this to me. And she said, "Well, yes,
 9      interest rate that is reflected in the promissory          9   we love her," mesnlng me. And then based on that I
lO      note?                                                  10      didn't wa.nt to continue with using him. And so we
1l          A We had originally gone to Mrs. Wade's            1l      just had the documents re-done by a different
12      attorney that she used.                                12      attorney in Austin.
            Q   was that Pat Cavness?                                     0    And 1 take It, if I can direct you to
B
14          A Yes.                                             "
                                                               14      Exhibit 2, the warranty deed. the third page of that
15          Q   And--                                          15      down at the bottom len-hand corner, would that be
                  n 0 cs.        a e s accoun n.      n                  e aw ~0         ~    cus      rown.
                              ,p,                                             Vo
                                                  ""           "              And so you and your husband, then,
1a      was, you know, a regular interest rate, as far as
        like if we had gone to the bank.                       "
                                                               19
                                                                          Q
                                                                       retained the law firm of Armbrust & Brown to draw
"'
20          Q    Okay.                                         20      these documents?
n           A And - I'm trying - !'m trying-- I don't          20         A 1 suppose you could say it was me and my
22      remember exactly what happened, but the-·                      husband. I mean, we would -- we all went -- we
        ultimately, the --Mrs. Wade's CPA said it needed to    "       being Mrs. Wade and all of us, went to Pat Cavness
"
24      be one thing. And then I checked with the -- with      "
                                                               24      and then he made his comments.
25      my CPA and he said, "No, there's a farm purchase       25         0   Do you have an opinion about why
                               30                                                            32

    l   e:w:ception.' And the 2 percent came up.                       M<. Cavness didn't like you? Did he ever say?
                Do you recall who Ms. Wade's CPA w.as?             '       A WeH, oddly enough, I would consider him a          '
    2      Q
           A    Lori Graham.                                       '   friend or acquain1ance now.
    '
    4              THE REPORTER: I'm sorry?                        '
                                                                   4          But I don't think he liked the fact that I
    5              THE WITNESS: Lori Graham.                       5   had -· well, a couple things came up. He had done
    6      Q     Is that-- Ms. Graham in Lamoasas, I take          6   Mrs. Wade's Will, and that did not, as it turned
        ft?                                                        7   out, reflect what her wishes were at the time. And
    '
    ,      Q   (By Mr. Walden) And are you talking about           9   being second guessed about that. But, then, he also
        a CPA you used would be in California?                 lO      didn't like It when my CPA had found the farm
"n         A   Yes.                                            u       exception rule.
           Q   And do you - in your opinion did any                       0   So I take it you mean that he didn't like
"       negotiation take place between you and your husband,   "       that somebody-- your CPA knew something he didn't?
"
,.      on the one hand, and Ms. Wade on the other hand,       "
                                                               H          A We!l, 1 don't -
                                                               l5         n   I th        t   u'resa n ?
               Define negotiation for me.                                 A Yeah. Yes.
 "
 "         "'
              A
                n ,erms    was ere any so 0                    "                  oy.          'Y'     ' Y'
        counterproposals made?                                         about the law firm of Armbrust & Brown?
 "'
 10        A   No. Mrs. Wade ga11e us a price, and we          "'
                                                               10          A I don't recall how I found them, but they
        agreed to pay that.                                    20      were recommended by somebody.
 "              And her attomey, your testimony is, came                   0    And did you -- you and your husband still
,"         Q
        up with the Interest rate?                             "
                                                               22      llved In California at thls time. Right?
           A Cavness had done the documents. And then                      A   Yes.
 "                                                             ",.
25
                            " " N'     ""' '"''        •d I
        still on good speaking terms with me at that tlme.     25
                                                                           0    nme           es    :L.monJ'       wa         a        n,

             ~                                                                                                         Toll Free: 800.880.2546

             ~
                                                                                                                       Facsimile: 512.326.8139

                                                                                                                                  Suite 220

      ES Q Y.IBJ~~                                                                                                    3101 Bee CCives RoCid
                                                                                                                          Austin, TX 78746
                                                                                                                   www.esqulresolutions.com

                                                                                                                                                      425
     Amanda Wade                                                                   Au ust 4,         2011

                                                                                                       96
 l         the    following         includes    counsel       for      all    parties           of

 2         record:

 4
 5                        I    further    certify          that    I   am    neither

 6         counsel      for,    related       to,    nor    employed         by    any     of    the

                               or    otherwise       interes~ed         in    the       outcome
                 the   action
                          Further       certification             requirements

l4                        Certified       to    by    me,    this      22nd       day    of

l5         August,      2011.

l6
l7

19                                                                                            4136

                                       Expiration          Date    ~2/31/12

20                                     F~RM    REGISTRA~ION            NO:    283
                                       ESQUIRE       DEPOSITION         SERVICES

22                                     (512)    328-5557

23
24         Job    No    259054RH

                                                                                  Toll Free: 800.880.2546
                                                                                  Facsimile: 512.328.8139

                                                                                             Suite 220
                                                                                 3101 Bee Caves Road
                                                                                     Austin, iX 78746
                                                                              www.esqulresalutions.com

                                                                                                            426
     Amanda Wade                                                                                        August 4,          2011

                                                                                                                           97

~                  FURTHER           CERTIFICATION                      UNDER          RULE   203        TRCP

2                  The        original              deposition               (    )    was    ~
3          returne<.   tU~

414 S. Live Oak
Lampasas, TX 76550
                                                    3

                                                                                                 352
                                                                          ,~-

                             (_   ~
                                   '                                     I
                                                                         \,
                                                                              -- /
                                                                                     \

                                            Promissory Note

 Date:   January____, 2004

 Borrower:       JOHNNY WADE and AMANDA WADE, husband and wife.

 Borrower's Mailing     Address·

                  JOHNNY WADE and AMANDA WADE
                   REDACTEDREDACTEDREDACTED
                     REDACTED
                                                         County

 Place for Payment:

                  1 REDACTED
                  Lampasas, Lampasas County, TX           76550, or any other place that Lender may
                  designate In writing_

P1iuclpal A:rnoout.     $5ee,eee.ee
Annual Interest Rate:             Two Percent (2%)

Maturity Date:          January 1, 2036

Annual Interest Rate on Matured, Unpaid Amounts~                Eighteen Percent (18%)

Terms of Payment (plinclpal and interest).
        Accno~ed if=lte~est is payable of:! the 1st day of Eebruacy:, 2004 aod oo tbe l$t da~ of each
succeeding month through January 1, 2006. Principal and interest are due and payable In monthly
Installments of ONE THOUSAND EIGHT HUNDRED FORTY-EIGHT AND 10/100 DOLLARS
($1,848.10), each, beginning February 1, 2006, and continuing regularly on the 1" day of each
succeeding month until paid. Payments will be applied first to accrued interest and the remainder to
reduction of the Principal AmounL

Security for Payment.        it1is 110te is secDied by a veudo1's lien aud st1pe1io1 title 1etained i11 a
deed fJ"'m EDE• • \IVAQF to Bop-outer dated lan11ary        2004 and by a deed of tn 1st of even date
from JOHNNY WADE and AMANDA WADE to Pat E. Cavness, trustee, both of which cover the
following real property;

       Being 475.28 acres out of the West One Quarter of Section 60, out of the Texas Central
Rallroad Company Survey. A.M. Berry Survey, Abstract No. 1645, and the A.M. Berry Survey, Abstract                  -
No. 1678, in Burnet Count)!, Texas, and being the same property conveyed In deed dated January 28,
1952, from Manuel Delbert Sylvester et al to Charles Otto WaOe anC wife, Edell SylVester wa(Je,
reoorded 1t1 V'olm11e lOB, Page 421-425, Deed Rem1ds oFBui 11et COUIJ"ty, Texas, to wt'licla ilaStiUiiietlt
reference is here made for all purposes.

                                                     1

                                                                                                              353
                                                                      REDACTED
                                                                           (    /
                                                                                    ;

Other Security for Payment: None.

         Borrower promises to pay to the order of Lender the Principal Amount plus interest at the
Annual Interest Rate. This note is payab1e at the Place for Payment and according to the Terms of
Payment. All unpaid amounts are due by the Maturity Date. After maturity, Borrower promises to pay
any biRf')aiG priRGipal balance pl!!s interest a+ the Aon!!al Interest Rate on Matured Unpaid. Amounts.

        If Borrower defaults in the payment of this note or in the performance of any obhgat1on many
instrument securing or collateral to this note, Lender may declare the unpaid principal balance, earned
interest, and any other amounts owed on the note Immediately due. Borrower and each surety,
endorser, and guarantor waive all demand for payment, presentation for payment, notice of intention
to accelerate maturity, notice of acceleratlon of maturity, protest, and notice of protest. to the extent
permilted by law.

        Borrower also promises to pay reasonable attomey's fees and court and other costs if this note
is placed in the hands of an attorney to collect or enforce the note. I hese expenses wm bear 1nlerest
from the date of advance at the Annual Interest Rate on Matured, Unpaid Amounts. Borrower will pay
Lender these expenses and interest on demand at the Place for Payment. These expenses and
interest will become part of the debt evidenced by the note and will be secured by any security for
payment.

Prepayment· Borrm"'er may prepay this note jn any amount at any time before the Maturity Date
without penalty or premium.

Application of Prepayment: Prepayments will be applied to installments on the last maturing
principal, and interest on that prepaid principal will tmmedlately cease to accrue.

        Interest on the debt evidenced by this note wlll not exceed the maximum r-ate or amount of
non usurious Interest that may be contracted for. taken, reserved, charged, or received under law. Any
interest in excess ot that maxim! 1m amm mt will be credited on the Principal Amount or. if the Principal
Amount has been paid," refunded. On any acceleration or required or permitted prepayment, any
excess interest will be canceled automatically as of the acceleration or prepayment Of, ir t11e excess
interest has already been pald, credited on the Principal Amount or, if the Principal Amount has been
paid, refunded.    This provision overrides any conflicting provisions tn this note and all other
instruments concerning the debt_

        Each Borrower is responsible for all obligatLons represented by this note.

        When the context requJres, singular nouns and pronouns Include the plural.

      If any Installment becomes overdue for more than fifteen days. at Lender's option a late
payment charge of $50.00 may be charged in order to defray the expense of handling the delinquent
payment.

        A defautt exists under this note if (1) (a) Borrower or (b) any other person liable on any part of
this note or who grants a lien or security interest on property as security for any part of this note (an
"Othor Obligated Party") fails to timely pay or pertorm any obUgauon or covenant In any wdtteo
agreert1e11t betwee11 Le••de1 a11d BoJ IO•tveror an)! Ott'tcr OBii§ateB Party; (2} any"' 1arranty. GO''enant. or
representation i~ this note or in any other written agreement between Lender and Borrower or any

                                                       2

                                                                                                               354
                                 .                                               ,.
                             "                                              '             \
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Other Obligated Party is materially false when made; (3) a receiver is appointed for Borrower, any
Other Obligated Party, or any property on which a lien or security interest is created as security {the
''Collateral Security'') for any part of this note; (4) any Collateral Security is assigned for the benefit of
creditors; (5) a bankruptcy or Insolvency proceeding is commenced by Borrower, a partnership of
which Borrower is a general partner, or an Other Obligated Party; (6) (a) a bankruptcy or insolvency
J3FOeeectin§ls commenced against Borrower a padnersbjp of which Borrower is a general partner, or
an Other Obligated Party and (b) the pmceeding continues without dismissal for sixty days, the party
against whom the proceeding is commenced admits the matenal allegations of the petiUon agamst It,
or an order for relief is entered; {7} any of the following parties is dissolved, begins to wind up its
affairs. is authorized to dissolve or wind up its affairs by its governing body or persons, or any event
occurs or condition exists that permits the dissolution or winding up of the affairs of any of the
f9llowing parties: Borrower, a partnership of which Borrower is a general partner, or an Other
 Obligated Party; and (8) any Collateral Security is impaired by loss, theft. damage, levy and execution,
iss~,;;~aAee af aA _gfficial w~t or:: oD:ter:: o_f seiz11re oc destmctioo uoles:::! it is QromQtl~ reQlaced with
 collateral security: of Uke kind and quality or restored to its former condition.

          Notwithstanding any other provision of this note, in the event of a default, before exercising any
of Lender's remedies under this note or any deed of trust or warranty deed with vendor's lien securing
it, Lender will first give Borrower written notice of default and Borrower will have ten days after notice is
given in which to cure the default. If the default is not cured ten days after notice, Borrower and each
surety, endorserr and guarantor waive all demand for payment, presentation for payment, notlce of
iRteAtier:J tg aGGelerate mat11dt~ ootice of acceleratloo of matudt~. grotest, and notice of erotest, to the
extent nermltted bY taw.
                                                                                              -c-
         If any provision of this note conmcts with any provision of a loan agreement, deed of trust. or
security agreement of the same transaction between Lender and Borrower, the prov[sions of the deed
of trust will govem to the extent of the conflict.

         This note will be construed under the laws of the state of Texas, without regard to
cl:ioice-of-law niles of aoy_ j!Jr:isdiction.

                                                            JOHNNY WADE

                                                            AMANDA WADE
                                              .

                                                       3

                                                                                                               355
                                                                   c.:
                                                                    _/

NOTICE OF CONFIDENTIALITY RIGHTS: IF YOU ARE A NATURAL PERSON, YOU MAY
REMOVE OR STRIKE ANY OF THE FOLLOWING !'"FORMATION FROM THIS
INSTRUMENT BEFORE IT IS FILED FOR RECORD IN THE PUBLIC RECORDS: YOUR
SOCIAL SECURITY NUMBER OR YOUR DRIVER'S LICENSE NUMBER.

                                                  Deed of Trust

                                                     Terms

Date:   January _ _• 2004

Grantor:        JOHNNY WADE and AMANDA WADE, husband and wife

Grantor"s· Mailing Address:

                 JOHNNY WADE and AMANDA WADE
                 REDACTED   REDACTED         REDACTED
                                       REDACTED
                                       REDACTED
                                                        REDACTED
                                                        REDACTED

                 REDACTED         REDACTED
                                          _ _ _ _ _ _ _ County

                                 ss

Trustee"s Mailing Address:

                 P.O. Box 409
                 Lampasas, TX 76550
                 Lampasas County

                      LLWADE

Lender"s Mailing Address:

                 1    REDACTED
                     REDACTED          REDACTED

                 Lampasas County

           oe
                Date:       January _ _, 2004

                Original principal amount:         $500,000.00

                Borrower;         JOHNNY WADE and AMANDA WADE

                Maturity date: January 1, 2036
                                                          1

                                                                   REDACTED   356
                             /   ,,                                      ,- -· )
                             \

                                                                         '·   __ ,/

                Terms of Payment:      As provided in the note.

         Other Debt: None.

pmper+y (including anv lmprovoments)!

       Being 475.28 acres out of the West One Quarter of Section 60~ out of the Texas Central
Railroad Company Survey, AM. Berry Survey, Abstract No. 1645, and the A.M. Berry Survey, Abstract
No. 1678, in Burnet County, Texas, and being the same propertY conveyed In deed dated January 26,
1952, from Manuel Delbert Sylvester et alto Charles Otto Wade and wife, Edell Sylvester Wade,
reoorded In Volume 108, Page 421-425, Deed Records of Burnet County, Texas, to which Instrument
and the record thereof reference Is nere maOe for a more par Ucolar descr iptlor ~ of st1cl1 p1 opert) and
tor an   ""~'

Prior Lien:      None

Other Exceptions to Conveyance and Warranty: Validly existing easements, rights-of-way, and
prescriptive rights. whether of record or not; aU presently recorded and validly existing instruments,
other than conveyances of the surface fee _estate, that affect the Property; and taxes for 2004, and
subsequent assessments for lfial ana pnor years due to ct1ar1ge II 1 la11d csage, o~"W11ersl1ip, or both.

       For value received and to secure payment of the Obligation, Grantors convey the Property to
Trustee In trust. Grantors warrant and agree to defend the title to the Property, subject to the Other
Exceptions to Conveyance and Warranty. On payment of the Obligation and all other amounts
secured by this deed of trust, this deed of trust will have no further effect, and Lender will release it at
Grantors' expense.

Clauses and Covenants

A.       Grantors• Obligations

Grantors agree to-

         1.      keep the Property in good repair and condition;

         2.      pay all taxes ana assessments on the Propel ty befo1e delillqt~eiiC)I,

      3.     defend tlUe to the Property subject to the Other Exceptions to Conveyance and
Warranty and preserve the lien's priority as it Is established In this deed of trust;

         4.      maintain, in a form acceptable to Lender, an insurance policy that-

                 a.       covers all improvements for their full insurable value as determined when the
           policy is Issued and renewefl, t:mless beREieF a~proves a smaller: amount In writiog·

                 b.     contains an 80 percent coinsurance clause;

                                                     2

                                                                                                           357
                                                                        (       \
                           \ ..                                         \   /

               c.      provides aU-risk coverage;

               d.      protects Lender with a standard mortgage clause;

               e.      provides flood insurance at any time the Property is in a floocl hazard area; and

               f ·      contains such other coverage as Lender may reasonably require:

        5.     comply at all times with the requirements of the 60 percent coinsurance clause;

       6.      deliver the insurance policy to Lender within ten days of the date of this deed of trust
and deliver renewals to Lender at least fifteen days before expiratlonj

        7.     obe) an laws, ercllFIBflees, ana restristive cg••enants applicable to the Property·

        8.     keep any buildings occupied as required by the Insurance pol1cy; and

       9.     if the lien of this deed of trust Is not a first lien, pay or cause to be paid all prior lien
notes and abide by or cause to be abided by all prior lien instruments.

B.      Lender's Rights
       1        I ender may appoint in writing a substitute trustee, succeeding to all rights and
responsibilities of Trustee.
      2.      If the proceeds of the Obligation are used to pay any debt secured by prior liens,
Lender Is subrogated to aU the rights and liens of the holders of any debt so paid.

        3.     Lender may appty any proceeds received under the insurance policy either to reduce
tRe Ob1i§atlen er to repair QF replace damaged or destroyed Improvements covered by the policy. If
the Property Is Grantors' primary residence and Lender reasonably determines that repairs to the
improvements are economically feasible. Lender will make the insurance proceeds avalfable to
Grantors for repairs.

        4.       Notwithstanding the terms of the Note to the contrary, and unless appUcable law
prohibits. all payments received by Lender from Grantors with respect to the Obligatlon.or this deed of
trust may, at Lender"s discretion, be applied first to amounts payable under this deed of trust and then
te ame~otRts Qble and payable to I pnder wjth respect to the Obligation tO be applied to late charges,
principal. or Interest in the order Lender in its discretion determines.

        5.     If Grantors fall to perform any of Grantors' obligations. Lender may perform those
obligations and be reimbursed by Grantors on demand for any amounts so paid, including attorneYs
fees, plus Interest on those amounts from the dates of payment at the rate stated In the Note for
matured, unpaid amounts. The amount to be reimbursed will be secured by thfs deed of trust.

        a      If there is a default on the Obligation or if Grantors fail to perform any of Grantors•
obligations and the default continue$ aftfi"r any required notice of the default and the bme allowed to
cure, Lender may-
               a.      declare the unpaid principal balance and earned interest on the Obligation
                                                 3

                                                                                                              358
                                  /                                         (
                                                                                 -
                             ',
                                      '
                                                                            \_   __   .. )   '

         immediately due;

               b.       direct Trustee to foreclose this llen. in wh\ch case lender or Lenders agent will
         cause notice of the foreclosure sale to be given as provided by the Texas Property Code as
         then in effect; and

               c_     gurchase the Property at any foreclosure sale by offering lhe highest bid and
         then have the bid credited on the Obligation.

       7.      Lender may remedy any default without waiving lt and may waive any default without
waiving any prior or subsequent default.

c.      Trustee•s Rights and Duties

If directed by L..eoder to· foreclose this Uen, Trustee wilt-

      1.     either personally or by agent give notice of the foreclosure sale as required by the
Texas Property Code as then in effect~

       2.    sell and eonvey all or part of the Property "AS IS" to the highest bidder for cash with a
general warranty blndlng Grantors, subject to the Prior Lien and to the Other Exceptions to
GeA''eyaAse ami ~Mar:ra~Ctty: a~C~d ~titbo11t [ep[eseotatlon or warrant~. ex~ress or imQiied. b}l' Trustee~

        3.      from the proceeds of the sale, pay, tn thts order-

                a.       expenses of foreclosure. including a reasonable commission to Trustee;

               b.     to Lender, the fuJI amount of principal, interest, attorney's fees. and other
          charges due and unpaid;

                c.       any amounts required by law to be paid before payment to Grantors: ana

                d.       to Grantors, any balance; and

        4.        be Indemnified~ held hannless, and defended by Lender against all costs, expenses,
and liabilities incurred by Trustee for acting In the execution or enforcement of the trust created by this
deed of trust, which includes all court and other costs, including attorney•s fees. incurred by Trustee in
defense of ao:yo actioo or proceedlng taken against Trustee in that capacity.

D.      General Provas1ons

        1.     If any of the Property is sold under this deed of trust, Grantors must immediately
surrender possession to the purchaser. If Grantors fail to do so. Grantors wlU become a tenant at
sufferance of the purchaser, subject to an action for forcible detainer.

        2.      Recitals in any trustee's deed conveying the Property will be presumed to be true.

      3.       Proceeding ondea t11is deed of t1ttst, flliM~ sttit fef feFeelesur:e, ef ptcr:suiRg: a1=1y other:
remedy will not constitute an election of remedies.

                                                       4

                                                                                                                   359
        4.      This lien will remain superior to liens later created even if the time of payment of aU or
part of the Obligation Is extended or part of the Property Is released.

     5.        If any portion of the Obligation cannot be lawfully secured by this· deed of trusl,
paymenls will be applied first to discharge that portion.

condemnation of all or part of the Property, from private sa e an eu o con e         a    ,
damages caused by public works or construction on or near the Property. After deducting any
expenses Incurred, including attorney's fees and court and other costs, LenderwiH either release any
remalning amounts to Grantors or apply such amounts to reduce the Obligation. Lender will not be
liable for failure to collect or to exercise diligence in collecting any such amounts. Grantors will
immediately give Lender notice of any actual or threatened proceedings for condemnation of all or part

        7.      Grantors asslgn to Lender absolutely, not only as collateral. an presaat ar ad futuae 1et1l
and other Income and receipts from the Property. Grantors warrantthe validity and enforceability of
the assignment. Grantors may as Lender's licensee collect rent and other Income and receipts as
long as Grantors are not In default with respect to the Obligation or this deed of trust. Grantors will
apply all rent and other Income and receipts to payment of the Obligation and performance of this
deed of trust. but if the rent and other income and receipts exceed the amount due with respect to the
ObligatlaA aAG SeeS of trust, Grar:dors may retain the excess. If Grantors default In payment of the

and other income and then as Grantors' agent may ren         e rope a
income and receipts. Lender neither has nor assumes any obligations as lessor or landlord with
respect to any occupant of the Property. Lender may exercise Lender-s rlghts and remedies under
this paragraph without taking possession of the Property. Lender will apply all rent and other Income
and receipts collected under lhls paragraph firstto expenses Incurred in exercising Lender's righls and
remedies and then to Grantors' obligations with respect to the Obligation and this deed of trust in the
ere:ler determined by Lender ' ender Is not required to act under this paragraph, and acting under this

Involuntary debtor in bankruptcy, Lender's ing a proo o c a 1m
equivalent to the appointment of a receiver under Texas law.

       a.       Interest on the debt secured by this deed of trust will not exceed the maximum amount
of nonusurtous Interest that may be contracted for. taken, reserved, charged~ or received under law.
Any interest in excess of that maximum amount will be credited on the principal of the debt or. if that
                                      celeration or re uired or ermitted prepayment, any such excess

principal of the debt or, If the principal of the debt ltas beer apaid, 1efth 1ded. This J)footisteA everFif.les
any conflicting provisions in this and aU other Jnstruments concenllng the debt.

       9.     In no event may this deed of trust secure payment of any debt that may not lawfully be
secured by a Hen on real estate or create a lien otherwise prohibited by law.

        10.     When the context requires, singular nouns and pronouns include the plural.

      I I.   Ttte tell it 1"'i'ote i11cludes all extenslens. mettiflsations, and renewals   of the   Note and all
amounts secured by thi~ deed of trust.

                                                      5

                                                                                                                    360
                               /   '
                                                                       .'
                                                                       \    .. _   J
                                                                                       '-.

       12.    Grantors agree to furnfsh on Lender's request evidence satisfactory to Lender that all
taxes arid aSsessments on the Property have been paid when·due.

        13.     If Grantors transfer any part of the Property without Lender's prior written consent~
Lender may declare the debt secured by this deed of trust immediately payabJe and invoke any
remedies provided in this deed of trust for default. lf the Property is residential real property
containing fewer than five dwelling units or a residential manufactured home occupied by Grantors,
excepllons to thrs provis1on are limited to (a) a subordtnate lien or encumbrance fiat does not transfer
rights of occupancy of the Property; (b) creation of a purchase-money security interest for household
appliances; (c) transfer by devise, descent, or operation of law on the death of a co-Grantor; (d) grant
Of a leasehotd interest of three years or less without an option to purchase; (e) transfer to a spouse or
children of Grantors or between co-Grantors; (f) transfer to a relative of Grantors on Grantors' death;
and (g) transfer to an inter vivos trust In Which Grantors are and remain beneficiaries and occupants of
the Pro e

         14.    Tins deed 01 trust binds, benents, and may be enforced by the successors In interest of
all parties.

      15,       If Grantors and Borrowers are not the same person, the term Grantors includes
Borrowers.

       16.     Grantors and each surety, endorser. and guarantor of the Obligation waive all demand
for payment. presentation for payment, notice of intention to accelerate maturity. notice of acceleration
of matmlty. p1otest:; and notice oi p1otest. to the extem permitted by law.

        17.     Grantors agree to pay reasonable attorneys fees, trustee's fees, and court and other
costs of enforcing Lende~s rights under this deed of trust If this deed of trust Is placed In the hands of
an attomey for enforcement.

         18.    if any provision of this deed of trust Is detennlned to be Invalid or unenforceable, the
validity or enforceability of any other provision will not be affected.

       19.     Gran1ors represent that this deed of trust and the Note are given for the foJJowing
purposes:

         The debt evidenced by the Note is In payment of the purchase price of the Property; the debt
         is secured both by this deed of trust and by a vendo~s llen on the Property, which Is
         expressly retained in a deed to Grantors of even date. Th1s deed of trust does not waive the
         vendor's lien, and the two liens and the rights created by this deed of trust are cumulative.
         Lender n-ta)' elect to foreclose wide1 eitlie1 of t11e liens nithout wvahrfog the othe1 01 111ay
         foreclose under both.

                                                        JOHNNY WADE

                                                   8

                                                                                                         361
                                                           ,./··   -~

                                                           \...__.)

STATE OF TEXAS                  §

COUNTY OF LAMPASAS              §

     This instrument was acKnowledged before me on                           . 2004, by
JOHNNY WADE.

                                       Notary Public, State of Texas

STATE OF TEXAS                  §

COUNTY OF LAMPASAS              §

      This instrument was acknowledged before me on - - - - - - - - - - - - . 2004, by
      DAWADE.

                                       Notary Public. State of Texas

Cavness law Ottice
P.O. Box409
414 s. Live Oak
Lampasas. TX 76550
Tel: 512 556-3639
Fax: (512) 556-3608

AFTER RECORDING RETURN TO:

Cavness Law Office
P.O. Box409
414 S. Live Oak

Fax: (512) 556-3608
                                          7

                                                                                      362
                                          CAVNESS LAW OFFICE
                                               414 South Liveoak
                                                 P.O. Box 409
                                             Lampasas, Texas 76550
                                                (512) 556·3639
Pat E. Cavness                                                                               FAX(5l2) 556·5608

                                                 January __ , 2004

     JOHNNY WADE and AMANDA WADE
     REDACTED
                    REDACTEDREDACTED
   REDACTED
     Re:         Edell Wade sale to Johnny Wade and wife, Amanda Wade

     Dear Mr. and Mrs. Wade:

                 I have represented EDELL WADE in the preparation of legal documents for use in cJosing the

                 While I have acted solely on behalf of EDELL WADE, you, the Buyers. acknowledge tliattlle
     legal fees incurred in preparing the legal documents will be paid by you even though ll:lave not in any
     manner undertaken to assist or render legal advice to you. except in the preparation of the legal
     documents. You further acknowledge and understand that you may retain independent legal counsel
     to represent your individual interests in the referenced transaction.

          Please sign below to acknowledge that you have been advised of my representation of EDELL
     WADE and that you understand that f am not your attorney.

                                                      s i nee rely yours,

                                                      Pat E. Cavness

     Buyers:

                JOHNNY WADE

                                                         1

                                                                                                           363
                                                                                  REDACTED
fax   cclwer shee1-
   REDACTEDREDACTEDREDACTED
REDACTEDREDACTED
 REDACTED
 REDACTED

       January 23, 2004
       Pa1' Covness
       Amanda Wade

       following changes and return for review/signature.

                                                            364
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        rtom """ old"' of •<~"*'" a\1he "'nnuac l n - 1 - •n M.IUreG,_I,fnt>lllt. .,.,nil I""' Will> Bnl' P"'W\*101>1'1 Gf II 11:1., 11aM11111.., ~ a-d Cl1 trw. .,."'     /--·
U"Gurft)l •ar~~amenll!lf tM !1-em•--....,•.aauon t~~·•W!ftl•n '"-'tCiar •nG BCW'I"Cw«, tt1e Pf"'\'t.ton• .t *'-lllll•ct
of t.rlr.l»l "tLW'lO ,vyern to \11'1-. •Mteftt O'f''tl"le . . , . , . .                                            •
       TPI'- nata Will ~ .. ·"""•~4 wndllt lh~ .__ at· -                          •••Ia ,., TIIMn, INIIM"' raa••~ to
GhcHc•-of..t•~ Me"• Of eny jvriedlotfO tl, ;\

                                                                      JoHNNv~bi

                                                                :a

                                                                                                   REDACTED                      371
~1-U•QI
                                                                                                     T•2fl   P.OOI/010   F•&l&

                                                                                                                                    .--
                       REDACTED                                          ca....!JY LNoiD TJ.Tt..ES

   lrteTRUMENT lii:P' ...... IT 18 "I~ FDf'l f'lBOOI'\D IN Ttla P'U eL~q 1'1800ft£te; 'fOUR
   8001AL 880UIUT'f I'IUMal!l'l OR YDUilD""'II_.. LIDIIN&& NUMD-                      .
                                                                 o•ell otTnl.t
                                                                    T•nll•

                                • 1004
                      JO""'t~ w,a,pe.,.,. AMANOA WAOtli, nu.~d 8'1"'11:1 WIJ ...

    Gt•n•W•       ~tUn• .Ad.dr••••
                       JOHNN'r VV.ACI~ ar.d AMA.NDI'lo WAI:IE
                         REDACTEDREDACTEDREDACTED
                         REDACTED REDACTED                                  o~n~

                                                             '
    Tru•t••'• MaiiiMa.A.Ur-••                                                                                                      ,.   --
                       P.O. BCIC 11011
                       t...ari\P-· T)C; ?eSSC
                       L~aa-               cou"t)f
    l..•l"ld•r;       ECIII'LL. WACIE
    L.a,.llar•a MaUh;g       Acl-•••
                            REDACTED
                       L...ft'UI-. TX T.6150
                       ~,. ....    county
    otlllaatren
              N..t.
                                                                                                                             -
                      041t.,       w.n..,IH)' - · illlllol..,..
                      Ot .... lnRI!>rln"'~at a..,.....-11:         AIXI;GOO.OO

                      ~~e   ..........r:     .JOHNNY' WAC I!.         and AI\II...NDA W,4.DI!J
                      LAr"'tZIIerr           llDI!LL 111/Ar:>E

                      Mlll"'rtty del•· .J•n•ar¥ i, 2Cillfl              1

                                                                                                                                   -

                                                                                                     REDACTED                372
                                                                                              (
                                                                                                     1
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  01·21·04    D$10lp~        From-Ar~brurt   l &town l.L.P.                                               T•ZTB    P.OD&/~11   F-5Z!

B1/I&/2BBI     ~711~
                          REDACTED

             011'1•• Delolo N.,., ••
     ,....,.,_rty ltr>CI11111"11181W l m - - • - ) :

     •-..u-
              I"'r ..tu• - - a n o l to·-~~ ,_.,..martha Ollli.Mio.,, Cranlcl,.
     n ...- , , u... ~ Cl.-.,... _,...., .......,.••• -.,.,. tl'o• trt~oo "' -
                                                                                                         --ey     lhi$ oieetl ., tru•t wQI ""'"• ,.. -••...,cot,.anol LMMter wiUI'8!eouHIIl41t
     ONr*trw:~'.,..na•.                                                    .              .             . .

     a••-•• and a..v.r.-~"a.
       .
      orenw.,. ag ... •   t~:~oo

              t.        -p -         po,...paftl' 11'1 ...... - I t -        ...tlcilllo"l
              2.          c._. •na --•mane. "" lha l"rop•rtr _o,.. cl•lfrlIIUa• CJI Tcua-.
           "'·     If tile  ,._eel• ..,    &t\11 Otllts••on ere uaed to pav •nv iiaot -r~ 1>1'
J..-lilll'ia Nioi'OII- tD allll16 r'ent.o -~~~ n-  -        ...,.cl   ~~3 belenoe        •'*   aarr~•d ~- . , u,e. Ql•llgM-
                                                                                                       .
                                                                                                                            .

                                                                                                                                   374
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                                                                                  611 All !180           f-t?l   P.OII/011      ""12&

                      REDACTED                                                                                           -           n

           ,,...,.::,.::                                                   .

           ca- n<>ti"" cf U.. feN9!~ure aale IIQ II• llllv•n hlil""'lcllid bl> Qla ?ada l'"i ~~~~
           .,_In effect: -
          .        o.      "'""'"'-- tha P,......rbl M .-.y faiGo>l-.ono •••• l;ry otrerlna              lh• lolilhMt 'o\1:1   and
           .,.._" ha...e tM h.ld c,..c:l tt.d o,. tfl•- dt::dfoaf~Qn .
                                                       ..,_Uit
         .,• ·
:·:x:s~un.
                  lA lOder miO)' ...,.....,!/fJfiY
                                                               . .                           ·. · ..
                                                                  wllh""' wOIIvlnv It and m•y ..,.,,.. any "-laull-.liut

IF cllr'Dotocl by L.encler to fa.......,• Qlll. llert, Trwellla Will•
                    ~ ,..,.-~ '"' b\1 agent 01\111 -
Til,.._ I",...Partll'
         '·
                      Codla eelhen !iloal'fec:t:
                                                                 Dl U.a for•alc.eu'"' .... •• """ulrecl " ' lila
                                                                                                              .
         2.        . . . •n• ODIWII'lf an or p•n df tne ..           ~MAll     fla1..,...t ..... ._.,,.,,.,..,...., •
                                                                                   .... Ia .....
. .,._,    .~tndlna              Q.....,..,,.,       ...,~~,~.~
                                                       k> the Pr!Dr L»n pncl '" lhe· !l:llhc
e.onv.v-~,.rrane, • ..- W~Dtout HljiHI&._.-...,.. Dl Wll,..."~~"· .,.,••••, rtnpl'-'. w nuaw.,
                                                                                                                 ~- liD

         a.       nm lila proceed• c1 tn• uli, pe)', In trlla un:lal'"
                  a.          m;pa....,a   ..r ID,.c::b:laure. In~ a ,.• ....,...,,. OCrmnii-R ID TJ\Ia~
                lo.      to Land••• -                f'uU ....aunt Df pllllalpoal, lnte...t, atl.a,.....,.a .....,, ..... allier
           otwroaa di!J• ..,d """~1:11           ·
                  "           aftll   amoun!!t   '"'"""'"'cf blo' t-10 0. plld Mtora p~•.nt ta ca....-llllld
...... ,...
-
           1ia•• '"~,':::"~'lt".::t::~':..":r:~::=.!~:;t:,.~~..:".:':.t
         otll'uct, .........,,,.,_••n----...ltiCIIOd!flil! ..,.                                    .,r-.t-...w~TN•.,..Iii
- • e af •ny erA!;"' ar !>,.. . .         d.,   !I ~ ,._,"'" TN!Itllaltl 111•1 ~-· ·                         .
1),    ., OO:ft.,., P•vi8JII!JtllC.

         2.       l'lacl- lr> anlf IJ'U_. di!IICI              """"•lfi"'G Ill•   P..,_,e~ Will be pr-IJmBCI   to ba crua.
         3.       ~dlntl l.lrtd•; ~ •••d al lft,tai~ "",.. .,.,.. '-"                    r. ... -'a~~ .r ~.....,. 4M1.V o~r
,."""" '!Mil rt.ae    een • ...,,.
                        en •• .-~a." !5t                ,...._111!1.._..
                                                                     "'

                                                                                                      REDACTED                       375
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                                    -   ---     -          -~                      --                                       --       '-   .             --   -
    .   - ..... ····-··   ---                                                                                                        ,, '-.-

                                              II'ISF.'ST ~                                                                                                            --
                                                           NotwltbsuoruUng anything 10 !he conltlll')'   ~<>nUoined nereln or In tl•o Note, pdo• to
                                              8.
                                              e>dar or 1111det tbc Note (lnc\\•dlng ecoel-iOft _af
                                              \:b4.Not'l) Lender v.-ill glv moldnt: a R,.yr,;,mt under the Not<:, 4nd )() do.ys..pdot wrirteo> :notieo Uld
                                              opp:a1.1.uni~ to cute any _oiliEr d.cf'aUlt 'fio~"!!~a~ m· m,der the Nete How~,~. wi'l:'h r8e.ord
                                              to a.ny daf'"ault other Ulan. a ftiila£e to n!ISI:nr a·payltient lJn.det thC :N9.te,§t~30 day tb:tJ.c:
                                -              period .nu be ext:ctUlcd $o- l~ne; as Chaotor .commtin.ced to 0\.'lt'e !l.ueb.. tiutt aUI'Uig tht:
                      -                        jrtltlal ;o day p.,Pod ~d
                                                                       j   tbereafto< dlllsenUy
                                                                                              -     p.O•eeutes ouch •cure' to comp\¢tiOn-          ·
                                                                        t' •   "                                                                       ·•
                                                    ....
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                       From-Atmbrust. & &ttwiS L.t,..p,                611   •as   ~~so         f·2TI    P. Olt/Oit     F•IU

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F>•\1'- Will loa •PP iad liNt to ti!B.tlerge tnal         PMt~on.                         .             .
      . o.

•-=wac:t    I>V•
        '10.       When lhe ccmteld,,..'-",..•• atr.Wutar      ,DW'I• •nel gronour.s mcdlld• tn.    P_~ral.

        I I,   Til• ,_,.. - ll'liiiOid.., •ll a-.wlerta. lt.Cidlfle&f.l-. and ..,.._.. efthe Nolla al'd all
.,.,ou,.. aaaurwd bV tttt- ~ 1/!!flf •ru.t~                                        ·

                                                           •

                                                                                                                          377
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                                                                      Ill 416 2110

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   ·. ·. 1 r: Giemare aG,.. ID PeV r_.,•loht -tii>f.'o - · ,...,.,.... r.oa, -                    -..o{II!ICI Oltlter
- • or enfoucll'fl ...., . , . . rlflh .. .,.., "''-,._..of tooJet If U'll• o~eo.a·arou.t.la plio-In "'• Mntla Clf
..,   oll~>mav   tor ·-m.n1.
          18,        If •   JOI'CIYl..en of tl'ole daalll of lnl!ll Ia llolorm'"•d ID l:>et~ or_.._.,..., -
                                        . Diller ra\1111101'1 Wllnot De 8ft-a,             ·

"""'......,
                                         or lrJJat -
           •• .,..,..,..... .,_ b¥ 11110 -
           ~··•~ratelnaU In a         ,.••lito       "~~' a .,..,_._ lien em 1tut      ,._.nw,
           Thedwtevkllll-llll:>!f'"-Noltt lolnp...,.,_..r_ pui'O_p_Dfllft•"" p 'q'l-dlflbt
                                                                                  WfiiDII I•
                                                OrMiaraof-dela• f'l*'tll•••ol'tfll•t-a.t- llllt
           veftdoo"' len, .,... lite liMo ..,.,.. ""'olll\e rlgtltl - ey I I I I a - 11'1.1101.- 'I'Um-.
                                                                                              Df
           Lonoto" rnav -    10 tl;lriOcloloO unll•r either llf -      liens Wlth<>Ut ....,.,,.    tt.. cnh.... or mAl'
           «oredoae und•r batt'1. .                               .

                                                                                                                      378
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                                  lit 411 1110

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                         II

$T.II-TE 0~ TEXAII

                                                            • 2004, DV

.,.,.... a.aw orne.

                              7

                                                 REDACTED            379
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        II•Zl•OI                      Oli04p/!l           frGI!I~Arlllbt'-lt\ I   8-to'Jiflll L..L.P-                     Ill oa& UID                     T•trl       P. 011/DU        F-ur

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                                                                                                                                   TITL..I!:S                               ........       u               ,,...-•·

                                                                                                           '

                                                                                          e-~            A.,..ement ·

        TH&: IITATir. 01' T10X_AS                                                                   II

        ,.,.....,,..
                         ="'• '"•
        COUNTY OF' U.r.tPA.SAG

                              1 .. d':,r, Of -·~oel,UQ
                         ,., ·                           -•1'1•~      ,_ ,,..,_,_ ,,...,...,.,,.
                                            ~liar miiY ""'"''" PGAa•IOn a no
                                                                                              t!Jif aK ""' pi'G- .-.;pi lh• hu..,_ af"WW''I&>/'1
                                                                                                         ...., ·~ k:lng-aa aha.,..,._
                             ~                                                      -•~ ~                                                                              -~...at•on
                                                                                                                                                                                  ' -I'·
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                 C)..J'                            • "'
                      ~~-
                                 .....
                                                                                                                                                                                                     ,.-·-"'

                                                                                                                                                    REDACTED                                   380
P. 0. Box409
Lampasas, TX 76550
(512) 556-3639
FAX: 556-0423

To:       JOHNNY & AMANDA WADE             From1    CAVNESS LAW OFFICE
Fax;       REDACTED                        Page.$    2   (!INCLUDING TRANSMITTAL)

Phone::    REDACTED                       Date:      2/1812004

          STATEMENT OF ACCOUNT
~·                                        C:C:

0 Urgent     x   Forftfwiew   0 Please COinment     D Please Reply    0 PIAase Recycle

•CommenW

                                                         THANKS.

                                                         pcO(~~
                                                         PAT E. CAVNESS

                                                                     REDACTED            381
...                                                                                                                ,<   -
                                                                                                                                'J
                                                  ·,                                                               \.       /

         Cavness Law Office
        414 S. Live Oak
                                                                                                                                                       lnvoiee
        Lampasas, Texas 76550                                                                                                                Data             Invoice#

                                                                                                                                           2/18/2004            1947

                BiiTo
             Edell Wade
                                                                                               -                                ,,
             C/O Amanda Wade                                                                   _;. .__-
                 REDACTED
                REDACTED

                                                                                                           Project                               Fila Number

                                                                                                          Sale to Son                               W-109.5

                                                           Description                                                                              Amount

       preparation ofWananty Deed. Promissory Note, Deed of Trust, Closing Agreement, Settlement Statement,
       .corresponaem::e ana rela~. matters.
       Sa!es Tax Computed in Quicken                                                                                                                               0.00

                                                  •-
                                                  •
                                              -- ----··
                                              .
                                                  ---·
                                                       .
                                                            ~,

                                                               ...;
                                                           ,_.__ ....
                                                                        ~;
                                                                             ' .
                                                                             (
                                                                                 I.. D
                                                                                   '
                                                                                       (
                                                                                           !

      Thank you for y()ur busines,.
                                                                                                                                                               $500.00

                                                                                                              Payments/Credits                                  $0.00

                                                                                                              Balance Due                                     S500.00

                                                                                                                                     REDACTED                     382
                                                                            /
                                                                        (       \
                                                                        "~-j
 Cavness 1 .aw Office
                                                                                                  Invoice
 414 S. Live Oak
 Lampasas, Texas 76550                                                                  Date             Invoice#

                                                                                      2/18/2004            1947

           Bill To

        EdU>U W&M
        C.:YO    .-\rrvmdt~. W~d~
        REDACTEDREDACTED
            REDACTED

                                                              Project                       FUe Number

                                                            Sale t.oSon

                                              Description                                      A.mount

Ot'ti~   oonfen:mce wi(b Ede(] Wade, et al.                                                                  150.00
Sule,;c Tax      Cornput~d   in Quick<3n                                                                       0.00

Thank   )'Q'-'   lbr your bu»ine.s$.
                                                                 T.
                                                                        -·                                """·""
                                                                 Payments/Credits                           $0,00

                                                                 Balance Due                              $300.00

                                                                                    REDACTED                  383
                        (),      ,/'>

                       7        71                                   /1   /J   /1   _,_,

                                                                                           .   ~         .

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      REDACTED       REDACTED
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                                                          -
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                                                                                    REDACTED       384
      <.OVA              0.            . Ins.                                I                                    I                                        I
                 '!;;" ·~~Is '                  ~.:::..'1:;~~".;:.,~1-;;:.                                                      '··~ ~::.,·:( '?...
                                                                                  )n~rof ~tual settlement cos~,                                                    i ,.;-~:-,:;:;,• :.•• shown.
      C. Nota'
                                                                                                                                                                                1                 lema ma,C<           •O.kSb
                                                                                                                      _. ..., . . too:>O                                                ..,_,
      100. G!OSs Am ounl Duo Fle1400)                                  536.00

                                                                                                                      Citylk>wn    .....                          to

                                                                                                                                                                  to

                                                                                                              412.

     120. G!OSS               t.Due From Borrower                                                ~<'><~       4 20. Groos                   t Duo to Se Jler                                        ..nnnmm
     2,00.                   I By Orin
     201.                'eamest money                                                                        501. E>yo ' of               ' "

    1                 • fo< Items unpaid by . . llo<
                                                         to
                                                                                                                                'fO< Hems unpaid
                                                                                                                      CJIYI1X>Wn taxes                            to
                     ''""""
                                                                                                                      ~
           . County taxes                                to                                                                                                       to
                                                                                                                                                                  to

     2                                                                                                        518.
     219 .                                                                                                    519.

                                                                                                              520. Total                                t Due Selle<
•
I   _300.<;~sh.
                         '""""'           ~                                                                       .<::ash
     301. GA'.-mfor                      y .... to
                                                             years to

                                                             months                      THE STATE            ·op · TEXAS I"'·"'"   ·1 ··
                                                       . KNOW ALL MEN BY" THESE PRESENTS:
                          COUNTY l>F LAMPASAS I
                              That we, · Manue1 Delbert Sy1vester and Chester Horace Sylvester, in-
    .... .                dividually and as independent executors of the w:llls and estate3 or
                          A. H. Sylvester and wite Emma Sylvester, both deceased, Mi~lie S~lvester
                          w:lfe of Manuel Delbert Sylvester, Melba S~lvester, ~1te ot Chester
                          Horace Sylves1;er, Lenora Sylvest .. r nut1Ar, and·hUShAnd Austin M. Bl1t1er
                          Core:Ln S-ylv-ester Stewar.t and husband Ivan 111. Stewart, o. Zell Sylvester.
                                      I                                      •       •          -     '             ·~e~11g                   •
          . ;·        .   in ~    a       .·     ounty·;-'l'exius·, -   excf pt" 9tleater. llorace 57     t1sti!n'·-..:aiia ~w·:lfe " ""• " °<. ·
    -. , ...: -i;~·;:9:~~ba·1-'-'7lve'liter· ·who",-e!liCi~ '.in~Haiit"J.l,'.ton'~'Count"1", for and· 1n:- cons:lde.rat1.on
     ' i:t'\!1: • -~t o~ ?the "alUll · o:f";'!l'went:y:' Thousand - ($20.000.00) Dol1ars - to· us 1n han~ · .
     ' · ·             Pfl.id · and ' secured ' to' be: paid ' 'b:r Charles: Otto •Wade' and · ·wire· Edell Sy1vester
      .i             ·Wade' as follows: · '               ... _.. . ·.• ·'· - ·- , ·     :<, ., ;  -           •
      '                     Twelve ·'l'housand ($12,000.00) Dollars·•-cash in hand pa:ld, the receipt
      'i               o~ · whS.Ch :la herebT acknow1odged and 1'or whS.ch na 11.en ex'Preased or
                       imD.li.1.~4.tt"etained or shall ex:lst and one promissory Vendor's Lien
                       no~~~flll"fth 'date herewith given by the said Charles Otto Wade and
                       wire Edell " Sylvester Wade, payable at the express req•lest apd ':,direction
                     . or _al.1 the parties hei:eto to Manuel· Delbert Sylvester -or order, due-
                       on or be1'ore February 1, 1952. witb interest thereon from maturity
                       nntil paid at the rate or · six (6") per cent pe:r annum, said note
                       being payab1e at Lampasas ·, Texas, and providing 1'or 'the usua1 Vendor• s
                       Lien and ten per cent attorney•s ree clauses, and the Vendor's Lien
                       and superior title retained · in this deed to aecure,the payment or said
                       note are hereby trans1'erred ·and signed ·to the said Manuel Delbert
                      ·sy1vester, hls heirs and assigns, and the undersigned ~ranters hereby
                       ac'knowledge that the rull and entire consideration 1'or th1s conve~ance
                       has been riaid to them and that the•r do not have• hold or claim sny
             " " ·-       .. ~~-!IP1.-th:a...1and . and._p:nam1.aaa-c.OA~~·d-Jo.e.-b;;: ~z.aap'l;,,,.aao~n~.,t.a••LJ..;a"".w.aal'lft.-....,,..
       _.,•.~ <· ... ancf"""su:rerior t1t1e 1n •raver · or said Manuel-06lbert-S';Ylvester, his heirs
     :r              and aasiRns as a.1'oresaid; have Granted, Sold and Conveyed, and by
                     these presents do Grant, Sell and Convey untouthe oa:ld Charles Otte
                     Wade and wire Edell Sylvester Wade or Durnet County, Texas, all that
                     ce:rta:ln real estate situated in Burnet .county; Texas, and described as
                     ro1lows:                                           ·
                              First Tract:      West One Quarter or Sec. 60, bsinc one hundred
                              sixty five D:rid 28/100 acres in nurnet County, ToxBs, ou~ or the
                              Texas Central ftsilroad Company Survey, bep,inning at the N. w.

0                               car. o! the A. M. Derry Surve:r, a set stone rrom wh1ch a L 0
                               bra N 9~· E 216~ vrs. a do N B-3/4 E 219} vrs.             Thence with the
                               N line or the said /\.. ?ti. 1'\erry Sur. M 71 E 945 vrs st md on the
     I                          said N l.ine rrom wh1.ch the N r~ cnl" or the seid A. 111. '!'lcrry
                                Sur. bra tt 71 E S vrs.      The n. E. cor or the seld Derry aur. 1•
                                marked by a s _t md 1'rom \-.h:Lch s Larp,e L. o. marked U brs N
     I                          42!; W 2SO vra. Thonce N. 19 VI. vii.th tho W 11ne o'£ t.he E 3/4
                                of Sec. No. 60. at 4~0 vrs. the top or Hluf'£ at 460 vrs. cor.
                                on the Tlest Edge or B:ranoh at N W cor. of the said E 3/&.1- or
                         . ·~ . Sec. No 60 on the~ . s ·line··ar the Thea. ·Blair Sur.       Thence with
                       ::.~~~fa!}."~'!~P-t "' the ~ sa·id-<'Bla:lr'.Sur.:"·S·-71'.W 1390 vra the-~ E ,.£~_._ ____...,.
                          , ·01' tne R. P. K:tszior-Sur., St.~Md.-, fit 6 19*E atf 957 vrs-&~•._...... -
                                forlced Elm the SE cor of the sald Kis:aier Sur.• at 1120 vrs.
                                an :lnner car ct the T. C. R. R. Co. No. 59, f'or the S. W. Cor
    !                           or t;his Sur. ·Thence 11 71 E 1145 vrs. a st md the Southermost
    ,·                          SE cor. or t.his Survey on the W line of' t;he said !'3err-:,• Sur. Th.
    i.                          N 19 W b60 vrs. to the place or besirm.ing, as Surveyed out by
    ,                           Dan W. Taylor, Jr.
                                Second Tract;    160 acres or the A. M. Berr~ qimiay, Burnet
                                County, Texas, as taken from tho Patent whibh is re~ol"ded in
                                Vol.· A, pae;e 2$9, Patent Records o:r Burnet Cnunty, Texas this
                                patent is Jfo. 593, Vol. 29, l.60 acres, be:lnr, Survey Jlo. lJ.i:B?,
                                 on the waters of Mesquite Cr at tributary or ·the LamriCUJas River,
                                 about 15~ miles N 16 E rrom·Burnet by virtue of an a1'1"1dav1t
                                made before the Clerk or· the County Court of nurnet Cnunty.
                                December 29~h. 1897, under "lln Act for the beneri t or Actual
      '
       "....
      \

0
     ~      .
    f.'.~;f!,-'       .~ :·:.                                ., . .:; ; ~;~..<   j   •   ~.\        " ;:   •
                                                                                                                    ·~   .
    ·"" ttrf..'!t
           ._,,r..                                      ~;   . : ... ., . '\': : '.-:;         ..              \~   .,. .    ,..~ .
    • :: ..   '
                                             ···.....

0
    · .~. ·

                                     Occupanta or Pub1ic 1anda. approved May 26th. 1873.                  Be6inn1nc
                                     at at md 582 ·vra. N 19 w . rrora a.po1nt.3&0 vrs ·N 71 E rrom the
                                        nor. :
                                 ' N ...,,      or the Hu~ McCoy sur; t;b lf 19 . W 950 vra a at mc1
                                 ....whenae a :L··o b_r a N 4?.1\ W 250. vra ·.a llaliqai. ta: bra Si E 162 vrs •
                                 .:·;Thence s '71 w 200 "vrs a branch 950 vra a st . md whence a L. o •
                                .'bra N 9t E. 216! v:r-a do bra "N 8-J/4 B 21.9-?t vrs.             'f'h 5 19 E
                                · 81.5 vrs a branch 950 vr.a o at md.            Th N 7.1. E 4 75 vra a branch
                                      950 vra to the pl.ace or bo~lnn'l.ng. bear1nr,s rnar!ced ff.
                  .                 · Thi.rd T~a.ct:   Out or t.he Thos. YI. D1a1r Surve:r. deacribad as            . .                                  .
              !llW.111111!11!1!~!111-Mi!i~9;i~~~~~~~~~~~~~~f!j~-ii~
                  - ~,..:::t.;.~ ... . ,..a. ·~ ~a. . d
                                                                                          · ia!~~11'~~~--~.l..c,e.~,('!": =::;·..:
                                                        a ,,. tj_.~ ~o ...1 e ~r a . _ •. . ,a~:eiiifcta-Burttet•••"- . · .·:.:;
              .i\t'~·'!'~~~~t:r ; :::TfJXa'•' , V.o;L, , _lf.O •-:1P es•~. 146;.-14Sh ··Al:.1. .~tha.t> .;oer:b.a:ln. ..tract:-: · · · ,..
           .t::f.> :: ~... ·, »., _.'";"Or°''par.9.a i: · "p.t"c1an~ .~Yi.n&:• on. .~eaqu 1:te ··cr,4t1.ek 1.n BU%_"11.e t .. coun"l;y • . . '
                 · •. " ' : • • _ 'l'exa11 1 and ba'1~ ~a .pert, ,or !'l :,or:1.g~a1 .lllll""11Ut,1n the ._. nam.e :or
                                             1
        ·.
                          ., . · ~.Thomas 131,air. ·Beginn1ng at·a"stana pDB. 1.t · be1n3 otie or the
                                               or1g~a1 c~rnars o.t . aa1d . or1gina1. sarvey from whioh'~ Live Ollk
                                               bra N SOW 75 vrs. · Thence S 71w· 1900 vra to a aeone pile :rrom
                                        · wh1ch a Live Oak bra N .50 W 75"vra.                     Thence N 19 W with George
                                                Aurtl.er•s 11na 600 ·vra to a rook md on T. W. Hart's South line
                                               :rrom which an Elm bra · s 7 W 51 vra •             Th N 71 Eat 1.00 v:-s the
                                                Creek 1 aad ot 1600· vra. T. W, Hart's s. E. Cor •• from which a
                                               Me squi. ta bra N 35 W 20 vrs. and El.Jll bra lf 74 E 50 vra.                       1'h S
                                               19 E to Meaqu1te Cr and w1th the meanders or the Cratik'·dowr. to
                                                whe:re the Char1as W11son South 11.ne crosses the • creek and
                                  .._,          thence South 19 E. with. said Wilson 11na 400 vra. to the oor or
                           :·, ·                tbe same·•       The. S· ·l9 ' E with the' original. line 400 vrs to the
                       '- ··.... ·l .... '=beginn1ng·' cor. • · c·ontainins t;wo handred' ao:r.ea, more or less,
                                       ' SAVE ·AND EXCEl'T 40 acres• more·· or ·1ess • out: or this ·Survey. the
                                                said 40 acres . being as :rollowaz ·· Bas at· the NW cor. or this
                                               -Sur. Th about 1.00 wards to and across Mesquite Cr.                            Th along
                                                 the N _l.ine o;r ~1e.s11uite .Cr • .,.to a.~a.lf?.U~. trtjt.Jl__l!hoq.t "~9--t'.ee~ ..b,e1ov,.,.., ,, , ,..
    ~ .
    -.-~~~w: · ···;;;            ..
                    ···.,··--·~"'!" ~a•·roak ,.~al.l.~n · saU!' JJesiiui te"'"Cr·.'T.; 'l'hence"°acroas"lr°esqu1 te Cr and
                                      - ~. ""S 19 E about>'"-100 'vrs · to;·thtt ·orfp;ina1 S boundary 1ine or this
                                     ,           survey. which 1oat named ~O scree mor or 1esa 1a hereby reserved
                                 r . < .rrom the . prov.1aiona ···o1' -.thia dead.-,.-                   ..     • ,. ..
                                        1 - ··       At.so. ·'SAVE AND 'EXCEPT• 10 acres• more or l.eas • out of the
                                                 above named 'l'hoa. 1Uair Sur as c.onveyed by A11.c e 111. 9erry and
                                                 G. L. G~avea and wife, M. H. Graves "to R. B. F. Berry by dead

0                                               •dated Sli'Pt• 14. 1909. recorded in· Vo1. · 4-B. pg. ·95. Deed Records
                                                 "Burnet County, Texas. descr111ed ca .tol.1ows:
                                                 piece, parce1 or tract of land out 01' the Thomae B~air Sur on
                                                 lllesqui.te Cr in '3urnct County, Texas. descri~ed as fol 1.ows:
                                                  a part or the 160 acres. of the aai.d Thomas B1a1.r Sur conveyed
                                                                                                                   A11. th,.t certain

                                                  to A11ce M. Berry by J. w. Blair and wl:fe by their deed dated
                                                 Mfly 29th• 1903, rocorded 1n Vol.. 40. pn pagea J.46-13, of the                               ""
                                                  Deed Records o:f Burnet Couney. Taxae, to which reference ia
                                                  here made and the said pare herein conve7ed ia al.1 o~ the
      .                                           same v•h1.r.~., J. '. es r.>n 1:.he East side or the LIX!npaaas and Aust1n
    ,,..                                          road• w~tih"MaaquiI ~ Cn~~nty, 'l'n:!ton, nn th:l.o <1n7 rersonrl1.1~· U!>!'Cnrcd i: .... nuel
                     Dn1':>art S:-;-lvootnr, nnd ?.fil11e .S:•lve3ter,. his w.'. t:o, both !mo,-m
                      to !TIO to ho the 'f'Crsnn11 ~·fhose nmne s are s ubscri bed to the r: o:re-
                      goS.n!!; instrument, endacl:ec•tted
    ~... _            the a ama 1'or the pu:rpdlsea and consideration therftin exp:rossed, l!.nd
    tw.:..:i:..··:~- tt>e ~ a~d Jltill.ie Sylvester, wife or: the &Rid Manuel DoJ.?ert !;:•lvc:oste:r
    ...,.._ ~ ..-,,; harlng..··bee,D-• examined 'b:y me pr1v1l;y and apart l'rom her husband• and
                     hllvini; hhe 11a,.1e fully exp) 111ned i;o her, :ihe, the · snid t!. illi., !'>7l.v .. aeer
                      na'cnowlodred 1mch lniit.ru!'IP.nt tn he her net and doed • and 11he de·
                    · clared thnt ohe . had will.ln• : l.~1 si-;nnd the snme for the pur••o!lea and
                      con:1!.de:rot.1.on therln ex-pres:ied, and that 11he dtd not. w1:;h to re-
                t:rar.t i t .
                   !lT.vmr ""!DETI UY JTJ\llD AltD SEAL OP Ol'Flr:E, Thia         26th    cloy of Jan\UD''7 '
                A. D. 1952 •

0
0
                      TnE STATE OF TEXAS
                      COUNTY OF          ifZ..,   'l!V
                        .   lle.f'ore me, the. undersi~!}ed author1ty, a MQtary Pu~lic 1.n and !or
                      ;tJ$ )!1 1 County, Texas, on th13 dAy !'ersonally appeared Ch.,ster
                       Hor oo Syl.veater, And ltel.h11 Sylvo9t;cr. hi:> wife, ':loth •tnown to me ·

    .,./.
    ; •. c.
               a .:
                        to l>n tbe T'•n•son9 ..11hosh !:nov1n to rno to be .th!> .
                      ·-persona whose nemas are subscribed tn the foreaoin~ instru~ent,
                        and acknowled'?'.ed to me that they each executed the same !or the pur-
                        poses and consideration thers!n expressed, and the said ~snore
                        Sy1veater. Btltler, w1.1'e of' the 3»1d !lustin u. '\utler, havln.; been
                        exo.mined by me pr1v1.ly and apRrt from h~r husband. and havin~ the
                        SllJllS f'u11y explained to her, she, the all.id Lenora Sy1vestor Antlar
                        ac1cn.,w1ed!"ed SL\ch inatruT:lent to bo her F.lct and dned • and o°!'le de -

0                       allll'od that she hnd Ylil.lin:-;1y signod the same 1'or the purposes find
                        cnnsidaration therein expressed, and that she did not wish to re-
                        tract it.
                             Ol:'VEU    l'>·!D~   J.P.!' 111\llO A ~TD S1!:A!. OI" OF'l•icr.:,   Th-ls   26th    cta7 or 'Jan1iar,. -.
                       Ao P. l';l;2.

                                                                                           ~;...
                                                                 .J.   v. llAMMBTr
                                                                              Mntary
                       TAE STATE_ OF TE"..CAS             I
     •        ·..•: .-.i ACOUlllTY"   .OF~,,...           I
                      :A'    no1'oro "'"•         bhe undoro:t .• :ned •mthority, o J'Jotnry PL:'-' lic 1.n ancl ror
                      ~~Cnunty,           Te:o:aa, on this day persona11~r apT)eared Ivan 111. S-:.e"1Brt,
                       :in  ~C'lrein ~yl.vl'tater Stawnll:'t, his wit'e ho th ltnn"7n \;o me to be the
                       1>erson:i nhnr.>e nn,,es era l'!•lhl'lc·· lhe., to the f°Oll:'P.~oin!:: instr11Mor.t,
                       and acknowledr,cd to me th~t thoy each executed the ~nme ror tne pur-
                       poses ond con8idorat: 1 ,,n therein e:-:prr:'19od, anti the s&.!.d t::orein
                       S:o.-lvostcr !'ltewart, nit's o! tho naic1 Ivan M. Sto1'Rrt, hav1.n.r ; been
                       exmn1ned Vy me prl vlly and apat't from her husband• and bavi.n~ tho
                       :iame fully explained to her, sho, the said Corein Sy1vaster StewRrt
                       nclmowledP,ed such instrwnent to be her Rct nnd deed. and she
                       dflcl"r"d thot she hnd Yli.lU.nr.;1.::r si ··nod tho same for the purpot1es
                       and conoiderotion theroin exprcascd, and that she did not ,·Jish o;o
                       retract i t .
                          GIVEH lTPT.>ETI UY HAND J\ND                       sr~l\L   OF OFFICE, T h : ; e s ay of "January-.
                       A. D. 1952.
                                                                       .i.   v. JLuucsn        Q??..   ~--.I    -.            /
                                                                                                                     ,..,.,,.c;..

0
0
                                 ·.. ,                             . i

                       ' THE STATE OP TEXAS.                                                          • .,

                       ~OURTY: . ~P       -'f-6:       I ." "      ":; :     ·    . .,     ..   .
                            ~;z; .n:e•          the undersigned authority, a Nota17 Publ.ic, in and
                       .for                  county, Texas, on t his day personn11y llppeared Oil.bert
                        Phi. 11          .. and o. Ze11 Sy1vester Phi11ipo, ·hi.a \'li1'e, both lmonn to
                        -   ta . . .. , .     r • "=er • ·   =~·"'"'....,~ ~Q;;Ji~J1,~.,1i.ae                   ·.r or~_goi~                  .-; ,.
                         1na,r·~~t:;.7..and· ~okri~'Iirll'gi'ldut0 me'·"tli1lt....-th'i'7"'8ac11..,,.ex,.Ciut...d'"the~1fal..'T1e
                       : :f'or the purposes· and considera·t1on therein expressed, and the sa1f.
                         o. zal L Syl.veater Ph1111ps, wi1'e or the said G11bert Phi11ips, -
                        hav1nB been examined by me privily and apart ·1'rom her husband, and
                        havi~ the same !all.y expl.ained to her, she. the said o. Ze11
                         Sy1vester Phil11pa ac'lcnowle~ced ~uch instrument to be hor act and
                         deed, and she dec1sred that she had w111in~ly signed the same ror
                        -the purposes and consideration therein expressed, and that she did
                         not wish to retract it.
                                                      Hll.HD     AND SEAL        OF OFFICE, This     .26t;bday of J'.am:iar;y- ·•,

                                                                 ~"·~                    ~_,;#~                    ~
                                                                           ~otary~~                                   Texas
                        THE STA'l'E OF TEXAS

                        COUHTY OF          ,~.....,_-{-
                              '":\~me, the undarsiGmd au'bhority, a lfotlll'"Y Publ.ic, in and .
    ,~ · ': ,:
    :·   ..
                  ,.    :f'or     •p · 9.i,nitxLd~g~•• • -l2a. ·1i;taia · day · peraonal.17 appeared Manuel.
                        Del.barf; 871.vttW•:f'T-!tftdltpefttntni executor of the wi.l.1s and estates 01'

0
                        A. R. Syl.vester"'"i'nd wlte Enma. Syl.veater, known to me to be the person
                        whose name la aubsorlbod to the foree;oibg 1nstr~,ment, anc:I aclmowl.edged
                        to me that he executed tho same for tho purposes and consideratio~
                        expressed therein, and in tho capacity therein stated.
                                    r.!VElt lJllDD'I 1.iY 11.Al'ID AUD SEAL OF OFF.ICE,             Thia     2&tbdny nr Janua~"·
                         A.D. 1$2•

                                                                                          ~·~
                                                                  o . . . . . . ,otarJ?°~y,;aa
                         TllE ST~T'~ OF Tli."Xll.S           I
                         COUl'JTY OF'       ~                I
                    _,notore me, the unde!"signed authority. a Notar:r Pub1ic, in llnd
    .-.~ .•.. :for~ .... County, Texas, an this day personal.17 appeared Chester
    Q   1~-:;ar,m,aoa: . lr'.1v~st~r • ." ' 1na.1v1dual.1;,· and . as 1ndepondent executoJ:" . or the w il.l.a
              nnd o st~t!'lo rtf: fl.. 11. S:f1ve ::te r "11'1.d w!f' e Emma S7,l.veste,.. 0 'mt::1~   SSOO,OOO.OO

               Borrower.        JOHNNYWADEondAMANDA WADE
                                EDELL WADE

                                                                             Jew000177

                                                                  REDACTED           86
                Mlltln'lly dote: Fobnlllf}' I, 2036

Property (lncludbz.g uay bnprovcmCt111}:
        That t.:ertllin. rt:al property more pouth;:~JIU'Iy dcst:rlbed In &he attached Bxhlbl! •A".
Prior Lien:     None
Other E;~~:ccptlca.t to Conveyance 11nd Wnrrallly; Validly existing co.semenls, right5-of-wny, and
pr!:$crlp!lvc righ.ts, whclher of n::cord; all pres~tly ro~,:Qrdad llll.d vOOidly cxisllns lmtrumenl5', vtbcl"
than canycyan!)CS of1he surfbaq fee cstrue thl!r giTw !be; Pmpgnv• end taxes for2004 and mb5'equent
aucssmcnts for 1hat IPld prior yeen due tv- chMgc 1~ lllnd usage, ownership, or both
         For vmluo rccoived nnd to seeuro p11ymcnt of the Oblig11tion, Orantcn~ convey the Proparly to
1 rus~cc in lruSI Orantors: warrant and nsrcc to defend the title 10 the Prcperty, subject to the Other
BKcll!!ptions to Conveyanc.e IUld Wll!Tilllty. On puymcnt oflhe Obliglltion und 111! otllcr amounl.ll secured
lby this deed  or  tn&$1, dl!s deed   ortNst will buvc nc funhcr dfc:ct, and Lender will ~CIUic It nt
Oronton;' expense.
ClnusClll and Covendnb                                                                                        ~~

                                                                                                              ?l33
                                                                                                      ~
                                                                                                              ~~
                                                                                                      ....,
Oruntors 11gree to•                                                                                           ~~
        1.      k\..ocp the Property In good n~plili lllld condllton:                                 =
                                                                                                      ~       ;<0

        2       pny oll IUXCll and assesm1ents on the Property before delinquency:                    = 1'1~
                                                                                                      =
                                                                                                              ~~

                                                                                                        i':;li!
                preserve tha nen's priority tiS it Is ll.!ltabllshcd in tllls deed of lnlst;
        4       mainl.llln, In 11 form uccepl!lble 10 l.ender, un lnsuronce policy tlult-
                 1.      covers all Improvements fOT tbeir full lnSllroble Vllhm liS detcnnfned when the
        r;elle) is hu~tea ami ftl"'C d. liRless l.andw appro 'llll aamllllDr IIRIQURt in ··'J'ith18i

                c.      provides fire and extended covensge;
                d       prulect5 Lender with a stundwd mortgasc t:luusc;
                        provides flood insurant:c 11t MY time the Proper1y h;ln 11 Oood huard lli'CIIi 11nd
                r       Contnlns such othl!r cow:ragc     11!1   Lender may rcusonably require;

                                                                                                                     .Jew000178

                                                                                                                              87
          3.         comply ru nil limos wfth the rcquiremeaiS of lhe 8'0 percent eoinsuranc~:" clauso;
         6     deliver the lnsumncc policy lo [,endcr wlfhln ttm days of lhe date of th!, deed of mmt
 ~~nd dcbvcr nmowals 10 Llo\ndcr at l~::lllit ten dnys before cx:piralion;

          7           lo the b~ of their knowledge, obey all iiiWS, ordlmmceJ. :and fCStrietiva cov.=nants
 appllcabl~;: tu.   the Property; and

          8.         keep any buildings oco::uplcd as I'Ciquircd by the insurance policy.
D.        L111ndcr•s Rq;hb
        I.      l.ond~r mny 11ppoln1 lri wrlllng • substilufc           trust~:c,   suceecding to alf rigbrs 1111d
responslbilltlc1 ofTtuste.;,.
        2      It th1: proo:cads of the Oblir:ntlon are used to pay My debt secun:d by prior lien:~, Lmder
is subrogn1ed to Withe rights III!d llcnsoflhc hoklersofrmy deb! so pnjd
            J.      Lender mny apply any praeecd:l rceeived undu tht: lnsurant:e policy eltb111r to reduce the
Obligution Qr lo n:palr or roplaca damQSOd Qf dl:3tntycd Improvements covcrud by tbc policy. If lbc
Property Is Otunton' primiU')' residence P.nd lend~:C" reasonably delcnnlnea thPt rcpaln to !he
Improvements nro economicDIIy f~;~UJble, l.endcr will nmke the insunuu:c proceeds nllilab/o 10
Gttu:~lol'lll fur repairs.

        4.       NotwHhstandin& the tenus o! lhc Note to tho conb'IU')', anr;t uniC$$ vppllwblo low
prohlbils, all paymrmt!l recel...,cd by Lender &om Onmtors with respect to the Obll;atlon or tlds deed of
tnm1 may gl 1 ••mlc:r's dlsm"inn be nppiJed fltsl '0 gmmm'' paypble •md•r th's deed o' 11;11'11 Md thlll
to ~ounls dlle IU1d puyublc to l-ender whh rtlspe~:~ to the Obligadon, 10 be Dpplh•d to 11110 IO'Iiw'IJCII,

        s.      If Grantors fall to perfonn any of Onv~IOI'S' oblisations, Lender may pe:rfonn
obUgation:s and br,:~ reimbun"cd by Ornntors on demnnd Cor nny IU11ounts so pWd, Including ..,~.,:;;;;.;
fees, plus inlcroiSI on thm~c w:nounls :!Tom tl!e dates of payment ot tho rntc .1t111cd in lh;o
matured, unpnld nmou11l!:. The amount to be rebr!bur!:ed wm bo seeured by this deed oftntu.
        6      If there is a de(]Jufl on tho Obligation or If Oruntors fh!l to peribnn
obl~lions and the def11ult ~:oodnur:s 11ftcr any required ngllclll' of th.., default and the
c:urc, Lender mny•

                       direct lrustce 10 f~closc thl!i lien, in which ciiSO Loodcr alll'
mliiW"il)', notice of uecel~tudun of wotuolq, p•otast, IUtw oFp;ct~u, tCI tho Clltent permlned b)
law.
        17       Grantors agree to plly i'CAsonoblc ottomcy's fees, lnlstec's fees, and court and other
costs of cnfon;ing L.cnder's rights under !his deW cfltUSI Jrthls de~ gf trus1 Is pl11<:ed in the hllllds of
on iiltomc)' fot' lmforecment
        18.     If any pnavhdon of this deed of trust ill determined to be invulit.l or unenfbrecllble, the
validity or enforceability ar an)' other provision will not be; nffectcd.
         19      Orantors r~rcsent lbat this deed         or trw:t   nnd the Note arc given ror the: fbllowtnc

                                                                                                                           .Jew000182

                                                                                                                                    91
               BXBCUTED lhls_k__ day of February, 2004

                                                          /OHNNYWADE

                                                           CdmMJ,u!dL
                                                            AMANDA WADE

STATE OF
COUNTY OF R1~B§J c£.
                       '""""             §

                                         §
       Tbls Instrument w-o~;~knowlcds:~;~d before me an .fffilR:i:[lliJU,!,!!FHtt;.lV'-..!O~p!2__ _ ,   2004,   by
JOHNNY WADE-
      ·~~HRISTINE~~~
      ij     o.-~- l
      ~ _Jl\lfif.OOT'lt\..1
 00

SfATEOFCAL., /Qt?tVlfr                   §

COUNTY OF fa 1/e/?.SI Q£                 §
                                                                                                        2004,   by

                                                                                                                     .Jew000183

                                                                                                                              92
Jew000184

        93
~~.!
'ilf4·;·
T

           Jew000185

                   94
pl'u-:rRlGGl:l a.nl.l llllJ>l'CIT~PIQnf;G 0 1n /II.VTo~t thurcr...,. oro r .. l.l::r pa\d
n .. nordln!]; t~> L~o f•uro .. nd tanC>r, arroab ~ nd raadlnn, "'han ~h.lo doo.t
ah-.1.\ bofl!-O obaol.llt.o,
A. ~~tJ:9;~."11J' 1\Wld• at Ln"'f!ooo.o, T'oxan, lfhlll l~t; dDT gf J"ai'luary,

.£.    9" •    $1&g ' •.,... fl...pt).. '
,'V-          ,.,_ ~
 1'.                '          ~

                            ..   _       HDta.ryJ?~Da'
                                                      ~

                                                                                                  .JeW000186

                                                                                                           95
;•jl     )IOJ'Diin• Wh<>•<> '"'"'0" II'J'O .Ub001"J.IIDd tO the r01"11Q:D1R'I Uult..Ur:r~"t,
         •11<1 Pl>llfl<>Oo;ad ta,... bhac·ti!<>J' DllOtl axaautod llho ,..., .. ra.- ~he t>Ur-
         J;1::  . ;:~ ~,l!tr:f~:",.}b~:;:•; ..1;"K:;;,~
         o>UttnlnaOIIVII llfld
         """"ldarouion l:hor111n ""-Pl'D••od, and th~t 1b11 dld rlOt 11i"h ~o ro-
         tro.at 1t,

              '.11¥1.':\1 l'•li)Uft Iff 111\JID /1.'10 S1!:1Lr. Of' O:n>taa:, 't'n\6--Z6,J;h_jloy at -.r-.uo'oury 1
                                             ... ~'"-nr            >1-?-?Z-... ~ -· .;;..;z:

                                                                                                                    .Jew000187

                                                                                                                             96
                                                                                                .            l
        rHVIiiiJ UJI'Diilll \.!:{ IIAJIP MID S'IU\I.o 01" of1';TCI!: 1 'l'hh   ~   20 F.3d 1360 Fifth

16   Circuit case, it' a Texas case, there's a comment on

17   constructive notice on page 1370:    It is settled by

18   numerous decisions of our courts that a duly recorded

19   instrument carries notice of its contents only to those

20   that are bound to search for them.

21       So, you know, what can be seen is a question about

22   the fiction of what Bud Wade should have known.     He

23   wasn't a party to those instruments.    He's certainly not

24   bound to go search for them by any law that Ms. Allen

25   cited.   And had he searched for it he wouldn't have seen

                                                                64
 1   the purchase price.    He wouldn't have been able to see

 2   the terms of the note.   He wouldn't have been able to

 3   see the interest rate.   It wouldn't have put him on

 4   notice of those things that he needed to be on notice of

 5   to bring this claim.

 6       There is a case called Rentfro that Ms. Allen cites

 7   in her materials and so do we.   In the Rentfro case the

 8   difference was there as the Court says -- and it's

 9   Rentfro, R-e-n-t-f-r-o, out of San Antonio.     But what

10   the Court said, and it's interesting, is that in that

11   case -- and this is hard to read some of the page

12   numbers, but I think it's on page 9, it says:    Rentfro

13   seems to acknowledge -- so Rentfro would be in the shoes

14   of Bud Wade -- Rentfro seems to acknowledge that deeds

15   were executed and recorded shortly after the events

16   occurred.   Rentfro's affidavit also seems to suggest

17   that before or soon after the deeds were signed she was

18   aware of all of the alleged facts by which she later

19   based her 2003 intervention.

20       Bud Wade has told this Court in numerous ways and

21   so has Nancy Wade that they did not know the terms of

22   the note, didn't know the rate of the note, they didn't

23   know the purchase price of the property, and you

24   couldn't see that from the instruments.    So the Rentfro

25   case may hold for the proposition that you're bound by

                                                                65
 1   what the public documents show but only to the extent

 2   that it shows the things that you complain of.      And

 3   these documents do now show those things.

 4                   THE COURT:     What about the argument she

 5   made that we have an eight year period there while mom

 6   was alive.    Why didn't the son call mom and say, Mom,

 7   what's going on?    Or why didn't he call Nancy?    I think

 8   he did say that he talked to Nancy.      He also talked to

 9   his wife.    He was aware of the fact that there was a

10   sale, but he didn't inquire of his mother or anyone else

11   what the terms of the sale were.      If he was so concerned

12   about all of this, why didn't he inquire using the --

13   I'm not talking about going down and digging through

14   public records.    I'm talking about picking up the phone

15   or dropping by and saying, What's going on?

16                   MR. RICHIE:     And I think that's a fact

17   question and it's an equitable question.      I don't think

18   it's a legal question.    He had no duty to ask.    He's a

19   son.    He's not complaining that mom had -- that she was

20   mentally incompetent.    He has no legal duty to do that.

21   So I think there's a fair question why he did not ask,

22   but I don't think it's dispositive of summary judgment

23   because he had no duty to ask.      What he will tell you is

24   that he didn't want to interfere.      It's his mother's

25   life.    His mother's world.    He didn't want to make her

                                                                  66
 1   unhappy.   She was old.     He has already told you in his

 2   affidavit and in Ms. Burns' affidavit mom was beginning

 3   to get agitated, seemed agitated.     So he didn't want to

 4   further stir the pot.     And he didn't know the things

 5   that put him on notice to ask those kinds of questions.

 6       Again, a sale at $1,200 an acre, we wouldn't be

 7   here unless the note was for zero interest and 40 years,

 8   then we would still be here.     But a normal note, 15 year

 9   note, 20 year note, 4 or 5 percent interest rate, $1,200

10   an acre, that's not the issue.      It's not the fact of the

11   sale.    You're not trying to get this property to make it

12   a monument to the family to go to every year for the

13   rest of their lives.      They are trying to bring an asset

14   to the estate so that the value of that asset can be

15   properly shared among all seven children like Mrs. Wade

16   wanted it to be done.     There is no duty for them to have

17   made an inquiry as to the terms of the sale or her

18   motive in the sale of the property until they found out

19   there was a problem, until they found out there was

20   something extraordinary.      Pat Cavness is fired, lawyers

21   in Austin are hired, the note gets modified.      All of

22   these facts stacked up that they learned after her

23   death.

24                   THE COURT:    I understood that the

25   business about Mr. Cavness being fired was something

                                                                  67
 1   that -- was it Nancy that was aware of?

 2                    MR. RICHIE:    I don't believe so.

 3                    MS. ALLEN:    That is in the summary

 4   judgment brief, Your Honor.

 5                    THE COURT:    Well, I'll let you all hash

 6   that out in a little bit, but --

 7                    MR. RICHIE:    Nancy said, when she got the

 8   file in 2010, she knew after the death that she knew

 9   that Mr. Cavness had been terminated.      Now, what Ms.

10   Allen is going to tell you is you can see from the deed,

11   Return to Armbrust & Brown when it's recorded, that

12   there is another lawyer involved.      But that didn't mean

13   that that lawyer was representing mom.      In fact, they

14   weren't.     So you still wouldn't know from looking at the

15   deed, the return-to deed, whether or not that is

16   Johnny's lawyer, which it was, or whether or not that

17   was mom's lawyer, whether or not Pat Cavness was still

18   in the picture or not.

19       So, yes, she learned eventually but not until mom's

20   death, and that's what she says in her affidavit.        She

21   knew that Pat Cavness had made a comment.      That comment

22   being:     Do you like -- to Edell -- Do you like Amanda?

23   And I think the suggestion is that it was made not more

24   like, Do you like her.     But, Do you like Amanda? It

25   wasn't necessarily a positive comment.      And I think you

                                                                    68
 1   will hear that.     It doesn't mean she knew Pat Cavness

 2   had been terminated and I think she will tell you under

 3   oath that she did not know that.

 4       Amanda's testimony in her deposition on page 31:

 5   That's what Pat said to Nancy and Nancy related to me.

 6   And she said:    Well, yes, we love her.

 7       This is Amanda testifying about what Nancy told her

 8   Pat had said.

 9       Well, yes, we love her.

10       And then based on that:      Do you want to continue

11   using him?    We didn't want to continue using him.     I'm

12   sorry.    And then based on that:   I didn't want to

13   continue using him.

14       This is Amanda saying she didn't want to use him.

15   Not Edell Wade didn't want to use him.       And so we just

16   had the documents redone by a different attorney in

17   Austin.

18       And then he goes on to say:      Well, whose attorney

19   was it?

20       And she says:     Well, it's mine and Johnny's.    And

21   we paid the bill.

22       There is another case, the Estate of Walter

23   Fawcett, 55 SW.2d 214 Eastland.

24                   THE COURT:    You said SW.2d?

25                   MR. RICHIE:    I may have.   55 SW.3d, 214.

                                                                   69
 1   I'm sorry.

 2                    THE COURT:    There you go.    All right.

 3                    MR. RICHIE:    This case calls for the fact

 4   that reasonable due diligence is a question of fact for

 5   a jury.

 6                    THE COURT:    Yes, I'm familiar with that

 7   case.

 8                    MR. RICHIE:    So it's a fact question.

 9   The question is a good question.      I certainly asked it

10   myself when I first met Bud and Nancy.         And there is no

11   duty to make inquiry.    Whether they prove to a jury that

12   there is some basis for estoppel, we don't have one

13   today.    And I would like to conclude by saying this idea

14   that they're estopped because they received the benefits

15   of the payments, there isn't any evidence, because it's

16   not so -- that when those payments were made and those

17   payments were paid to bank accounts of Mrs. Wade, that

18   any of her other children got any of that money.         So the

19   benefits of the note payments is a facade or at least a

20   fact question.    Money is fungible.    We don't know what

21   money got distributed to Bud Wade.      We don't know what

22   money got distributed to Nancy Burns.      We know money got

23   distributed.     We don't know if it's the money from the

24   payment of the rent.    It's money on the estate account.

25   She had other money.    She had Social Security.       She had

                                                                  70
 1   interest on her CDs, et cetera.    So to say that they are

 2   estopped because they accepted the benefits of the

 3   transaction, they didn't receive any benefits of the

 4   transaction and received none of those payments during

 5   that time they were being made.    So that is not

 6   accurate, but if Ms. Allen believes she can convince a

 7   jury that they have somehow received those benefits and

 8   that therefore knew about it and benefited from it and

 9   knew at the time they were receiving them, that mom was

10   being paid and was going to build an inheritance for the

11   future or something like that, perhaps she can prove an

12   estoppel.   Not for summary judgment.

13       May I have just a moment, please.

14       In conclusion, Your Honor, it' just there are so

15   many facts in this case.   There are so many issues that

16   took place over so many years.    It is an extraordinary

17   case.   We have a lawyer, a California lawyer, a mother

18   in law, buying property one-half to one-third of its

19   value, 32 year note.   First there's low interest, then

20   there's no interest.   No proof of -- none at all that

21   mom intended that reduction of $81,000.    In fact, Amanda

22   and Johnny were both shocked that there was a

23   discrepancy between the original note payments and the

24   amount of the modification.   Couldn't explain where the

25   modification came from.

                                                                71
 1       So we believe this case is right for trial.      There

 2   are a lot of fact questions with respect to the issue of

 3   the sale of the land in 2004, the question about why it

 4   wasn't foreclosed once their payments weren't made, why

 5   Pat Cavness wasn't replaced with a new trustee at the

 6   time Amanda is walking around with a power of attorney

 7   and had the power to use that to happen on behalf of

 8   Mrs. Wade.   Didn't do that.   So we believe we have a

 9   breach of fiduciary duty to bring the propepty back in

10   in 2009 and 10 when that modification got there.     In '11

11   when Don Walden proved up that the note hadn't been --

12   that the balance that was claimed by the maker of the

13   note was less than the true balance that was in default,

14   still no foreclosure.   No foreclosure to this date.

15       So we believe there are a lot of fact questions,

16   multiple theories that would allow this property to be

17   brought back into this estate, either through a recision

18   or a foreclosure.   And that being said, this case needs

19   to go to trial so all of the facts can come out.

20   Summary judgments are limited to the summary judgment

21   facts.   It's different than a jury trial, and our

22   client, Mr. Wade, Bud Wade, deserves his day in Court to

23   put forth this matter and try to recover for the estate

24   the primary asset that his mom and dad worked so hard to

25   accumulate during their lifetime and that was intended

                                                              72
 1   to be there for the benefit of all seven children.

 2       Thank you, Your Honor.

 3                    THE COURT:     Thank you.

 4       Do counsel for the other parties wish to address

 5   the Court on this issue?

 6                    MR. DUCLOUX:     I'll limit myself to 60

 7   seconds, but I will be happy to go after.

 8                    THE COURT:     Well, the issue of regarding

 9   the executor and what she did, when she did it are

10   issues that I think are tied in with the, more with the

11   issue of whether or not she should be removed, not

12   necessarily the initial sale of the property.

13       Counsel, I know that you're representing Nancy, but

14   at the same time I just didn't know if you wanted to

15   address any issues at this point?

16                    MR. WALDEN:     I'll wait.   I don't have

17   anything to add that you haven't already heard.

18                    THE COURT: Do you want a brief rebuttal?

19                    MS. ALLEN:     Your Honor, I need 60

20   seconds.

21       You've just heard an admission that Mrs. Wade had

22   full capacity.    There is not a lack of capacity issue.

23   You have just heard an admission that the plaintiff who

24   claims he wants to set the sale aside knew about it and

25   he knew about it as early as March, 2004.        That is the

                                                                    73
 1   end of that.     Mrs. Wade is allowed, she is a grown up

 2   person with capacity, and she gets to dispose of her

 3   property as she sees fit, and that is exactly what the

 4   summary judgment evidence shows she said she was going

 5   to do.   So that's the end of that.

 6       The problem as subscribed to you by Mr. Ritchie is

 7   that after she died they didn't get as much as they were

 8   expecting.     That is not a cause of action.   If there is

 9   money owed to the estate under the loan documents that

10   has not been paid and they can show that, it should be

11   tried.   That would be justice.    But this sale by a woman

12   who they admit had capacity and admit that they knew

13   about, in 2004, they don't get to wait eight-plus years.

14   The law does not allow that.    She gets to dispose of her

15   property as she sees fit, and she did that.

16       And, Your Honor -- five more seconds -- for the

17   record Mr. Bujnoch's report to the Court reflects that

18   he has produced all of the banking records beginning

19   2004 forward through 2012, the date of the audit.      I

20   produced before and have just recently from my computer

21   to Mr Richie and to Mr. Walden the balance of the

22   banking record for the time period that this does not

23   cover.   If they have a legitimate complaint that I have

24   not complied with a discovery obligation, I will present

25   myself to this Court any time that the Court desires to

                                                                74
 1   respond to that.

 2                    THE COURT:   Well, that's one of the other

 3   items we will be hearing today.

 4       All right.     After hearing the evidence -- and let

 5   me just say this.    I know that families, kids and

 6   families, may take advantage of a parent to the

 7   detriment of the other kids.     I also know that sons

 8   don't want to rock the boat if mama is happy and bring

 9   her into the picture of a possible conflict between the

10   kids.   They want their mom to have a happy home, happy

11   life.   And I don't think that possibly mom got the best

12   deal, but at the same time mom got other benefits as a

13   result of this deal.    And that is to have someone at the

14   ranch caring for her.    I can understand why he insisted

15   upon buying the ranch if he was going to live there and

16   take care of mom.    Then that would be in effect, in my

17   mind, a part of the consideration of the sale of the

18   ranch, was that promise from her son.

19       Accordingly, the Court is going to grant the

20   partial summary judgment which bars Bud from seeking a

21   recision of the sale.    Now, that's not to say that we

22   don't have fact issues regarding the second note.        I

23   believe we do.    I believe there are issues there that

24   will need to be resolved by a jury.

25       After lunch we'll go ahead and address the other

                                                                  75
 1   motions that are before the Court.      We will be in recess

 2   say, for -- how long do you all think you need to be

 3   gone to eat?   Let's be back by 1:30.

 4                        (Lunch break ensued.)

 5                  MS. ALLEN:    Your Honor, if I may as a

 6   housekeeping matter.   I neglected to provide the Court

 7   with an order earlier.    I've shared one with opposing

 8   counsel and would like to share it with the Court, if

 9   it's convenient.

10                  THE COURT:    All right.   Let me just ask

11   -- this is again cause number P9127, Estate of Edell

12   Wade, deceased.    And we just finished the hearing on one

13   of the pretrial motions and I granted it.      And there has

14   now been handed to me an order granting defendant's

15   Amended Motion for Partial Summary Judgment concerning

16   the 2004 sale pertaining to all claims, and the question

17   at this point is has counsel approved it?

18       Has this order been passed around to opposing

19   counsel?

20                  MS. ALLEN:    I have shared it with

21   opposing counsel, Your Honor.

22                  THE COURT:    Does anyone object to the

23   form of this motion -- this order?

24                  MR. RICHIE:    I do, Your Honor.   Don

25   Richie on behalf of Bud Wade.    I have a proposed

                                                                 76
 1   addition.

 2                   THE COURT:    And have you shared that with

 3   counsel?

 4                   MR. RICHIE:    I have now, Your Honor.

 5                   MS. ALLEN:    I'm ready to respond at the

 6   Court's pleasure.

 7                   MR. RICHIE:    May I show the Court?

 8                   THE COURT:    Yes.

 9                   MR. RICHIE:    I apologize for my

10   handwriting, Judge.

11                   THE COURT:    Okay.   Does the defense

12   attorney have any objections to the revisions to the

13   proposed order?

14                   MS. ALLEN:    We do, Your Honor.

15                   THE COURT:    All right.

16                   MS. ALLEN:    Yes, Your Honor.     We do.

17                   THE COURT:    Okay.   Well, let's let

18   counsel have a seat and then I'll hear your objections.

19          Let me first of all say this.     You gave the first

20   one.     Let him tell me why I should make the changes and

21   then you can rebut.

22          All right.   Go ahead, counsel.

23                   MR. RICHIE:    Your Honor, the way I

24   understand the Court's ruling is that the question about

25   whether or not the sale could be rescinded after 2004

                                                                   77
 1   after waiting till 2012 to bring the claim, the Court's

 2   ruling that the sale could not be rescinded, I did not

 3   understand the Court to rule that the question was the

 4   amount at which it was sold or the terms upon which it

 5   was sold or whether or not Mrs. Wade for example had

 6   been unduly influenced, did not understand this to be

 7   foreclosed.   Also the matter of the note modification is

 8   --

 9                  THE COURT:    Let me just say this.     My

10   intention was to foreclose everything but the issues

11   regarding the second note.

12                  MS. ALLEN:    Understood, Your Honor.        And

13   I believe that my order does that.    It certainly is the

14   intent.

15                  MR. RICHIE:    Of course we don't think it

16   does that because it says all claims.    The claim on the

17   note is part of --

18                  THE COURT:    Well, I will be glad to

19   clarify my order by going ahead and saying pertaining to

20   all claims except the zero interest note.

21                  MR. RICHIE:    We've pled breach of

22   fiduciary duty and --

23                  THE COURT:    Well, you'll have issues of

24   fiduciary relationship that are anew in this second

25   note, primarily because of the power of attorney.

                                                                       78
 1   Secondly, at that particular point it seems like the

 2   facts show that there is more isolation than when they

 3   first moved in.   These are some things that I think will

 4   probably be germane to the issues that you've challenged

 5   the second note on.   But as far as being able to set

 6   aside the sale of the ranch to the defendant, I intended

 7   to close the door on that issue today so that you all

 8   would have a better understanding of where you go in

 9   potential settlement negotiations and other matters.

10       As far as being able to maintain that there was

11   undue influence exerted, that she was susceptible to

12   undue influence because of diminished mental capacity,

13   these are all things that are left to be litigated.     I

14   don't believe they are left to be litigated as far as

15   the actual sale of the ranch, only those issues as they

16   relate to the second note that was drafted at this point

17   is of concern to the Court.

18                 MS. ALLEN:    If the Court wishes to make

19   that clarification, we have no objection.

20                 THE COURT:    All right.   I'm going to

21   grant some of the relief that you're requesting by going

22   ahead and finding that pertaining to all claims -- I'm

23   going to go ahead and insert "except the zero percent

24   interest note".

25                 MR. RICHIE:     If I might ask, Your Honor,

                                                                 79
 1   could you say "including all claims relating to the zero

 2   interest note"?

 3                   THE COURT:    Pertaining to all claims

 4   other than the zero percent interest note.

 5                   MR. RICHIE:    My concern was Mr. Stubbs

 6   said it's his understanding -- this is my understanding

 7   of what I heard him say, that he thinks only the amount

 8   of the note is --

 9                   THE COURT:    No, that's not true.   The

10   other issues that I see regarding the note -- that's not

11   really on the agenda today.     But if it helps you all as

12   far as clarifying the Court's position on that matter,

13   it does appear to me that we have a fact question of

14   whether or not the decedent voluntarily entered into a

15   note modification agreement knowing the actual principal

16   balance left owing on the note, because there's

17   apparently now -- you may have cleared this up with

18   giving them copies of the canceled checks, but through

19   earlier pleadings it appeared that there was a constant

20   $81,000 discrepancy in the amount of the note.       That's

21   an issue.   Also an issue on whether or not what

22   motivated mom to make a zero percent interest note.        Was

23   it because she didn't like the IRS as alleged in the

24   pleadings or is it because she was in some way misled.

25   I don't know.   But those I believe are fact issues that

                                                                   80
 1   are in dispute and would have to be resolved by answers

 2   to special issues at a jury trial.

 3        Now, I want you all to be able to litigate those

 4   issues.   So I will go ahead and clarify my ruling to go

 5   ahead and say pertaining to all claims except regarding

 6   the zero percent note.

 7                  MR. RICHIE:   Thank you.

 8                       (End of proceedings.)

 9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

                                                             81
 1                      C E R T I F I C A T E

 2   STATE OF TEXAS        )

 3   COUNTY OF BURNET      )

 4       I, VICKI K. KANEWSKE, Official Court Reporter in

 5   and for the County Court at Law of Burnet, Burnet

 6   County, State of Texas, do hereby certify the above and

 7   foregoing contains a true and correct transcription of

 8   all portions of evidence and other proceedings requested

 9   by counsel to be included in this volume of the

10   Reporter's Record in the above-styled and numbered

11   cause, all of which occurred in open court or in

12   chambers and were reported by me.

13       I further certify that the total cost for the

14   preparation of this Reporter's Record is $834 and has

15   been paid for by Mr. Don Richie, Attorney at Law.

16       GIVEN UNDER MY HAND AND SEAL OF OFFICE this the 3rd

17   day of March, 2015.

18

19

20

21                    /s/ Vicki K. Kanewske

22   VICKI K. KANEWSKE, TEXAS CSR NO: 2159; EXPIRES: 12-31-16

23     Official Court Reporter, Burnet County Court at Law

24           220 S. Pierce, Burnet, Texas       78611

25   512-715-5244; Fax: 512-715-5226; Email: Vkaykan@live.com

                                                              82
                          03-15-00100-CV

                               Clerk's Record
                               VOLUME10F2

                       Trial Court Cause Number P9127
                              In the County Court
                           Of Burnet County, Texas
                       W.R. SAVAGE,Judge Presiding
•••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••

                    IN THE MATTER OF THE ESTATE OF
                             EDELL WADE

                               Appealed to the
                Court of Appeals for the Third District of Texas,
                               at Austin, Texas

•••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••

Attorney for Appellant: SHELDON E. RICHIE
Address: 100 CONGRESS AVE, SUITE 1750 - AUSTIN, TEXAS 78701
Telephone No.: 512-236-9220
Fax No.: 512-236-9230
E-mail address: srichie@rg-austin.com
State Bar No.: 16877000
Attorney for: JAMES E. WADE, Appellant(s)

•••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••••

                                                  JANET PARKER,
                                                  Burnet County Clerk
                                                  220 South Pierce Street
                                                  Burnet, Texas 78611
                                          CAUSE NO. P9127

ESTATE OF EDELL WADE, DECEASED                 §             IN THE COUNTY COURT AT LAW

                                               §             OF

                                               §             BURNET COUNTY, TEXAS

                                               INDEX

Name                                                                                Volume 1   Page

Defendants’ Johnny and Amanda Wade’s Amended Motion For Partial                                5
Summary Judgment Concerning The 2004 Sale (Pertaining to All Claims)
      Filed March 20, 2014

Defendants Johnny Wade’s and Amanda Wade’s Traditional and No Evidence                         166
Motion for Partial Summary Judgment on Plaintiff James Wade’s Claims for Attorney’s
Fees Against Defendants in their Individual Capacities
      Filed March 20, 2014

Plaintiff's Motion For Continuance And, In The Alternative, Response To Defendants'            279
Amended Motion For Partial Summary Judgment Concerning The 2004 Sale
        Filed April 7, 2014

Order Granting Defendants' Amended Motion For Partial Summary Judgment                         611
Concerning The 2004 Sale (Pertaining to All Claims)
      Filed April 14, 2014

Plaintiff's Emergency Motion To Reconsider Order Granting Defendants' Amended                  612
Motion for Partial Summary Judgment Concerning The 2004 Sale or Alternatively,
To Sever Plaintiff's Claims Concerning The 2004 Sale Or For Permission To Appeal
Interlocutory Order
        Filed April 23, 2014

Supplement to Plaintiff's Emergency Motion To Reconsider Order Granting                        675
Defendants' Amended Motion For Partial Summary Judgment Concerning the
2004 Sale or, Alternatively, To Sever Plaintiff's Claims Concerning the 2004 Sale
or For Permission To Appeal Interlocutory Order
       Filed April 24, 2014

Order                                                                                          762
        Filed April 29, 2014

Plaintiff's Third Amended Original Petition                                                    765
        Filed May 2, 2014

Motion for Exclusion of Evidence (For Plaintiff’s Failure to Respond to Discovery Requests)    820
      Filed May 7, 2014
Defendants’ Hearing Presentation in Support of Motion for Exclusion of Evidence              848
      Filed May 20, 2014

Defendants’ Motion for Partial Summary Judgment (as to all claims for relief based           950
on: default” on loan)
       Filed May 22, 2014

Defendants’ Motion for Partial Summary Judgment (as to All Tort Claims, based                963
on Economic Loss Rule)
      Filed May 22, 2014

Defendants’ Response to Plaintiffs’ Traditional and No-Evidence Motion for Summary           975
Judgment on their Claims for Breach of Fiduciary Duty and Conspiracy with Exhibits A-G
      Filed June 5, 2014

Amanda Wade’s Response (in her capacity as Independent Executor) to Nancy Burns’             1063
No-Evidence Summary Judgment Motion on Affirmative Defenses
      Filed June 5, 2014

                                                                                  Volume 2
Response in Opposition to Plaintiff’s No-Evidence Motion for Partial Summary                 1122
Judgment and Nancy Burns’ Joinder (as to Affirmative Defenses and Couterclaims)
with Exhibits 1-25
       Filed June 5, 2014

Sixth Amended Answer To Plaintiff James E. Wade's Third Amended Original Petition            1263
and Second Amended Counterclaim of Johnny and Amanda Wade
       Filed July 15, 2014

Sixth Amended Answer to Plaintiff James E. Wade’s Third Amended original                     1275
Petition and Third Amended Couterclaim of Johnny and Amanda Wade
       Filed July 15, 2014

Fifth Amended Answer to Plaintiff Nancy Burns’ Amended Petition for Damages                  1296
for Breach of Fiduciary Duty and Second Amended Counterclaim
       Filed July 15, 2014

Order                                                                                        1314
        Filed July 29, 2014

Response to James Wade’s Motion for Continuance, and Motion for Leave to                     1315
Supplement Summary Judgment Proof
      Filed July 24, 2014

Verification Pages for Sixth Amended Answer and Third Amended Counterclaim                   1420
       Filed August 4, 2014

Consolidated Response of Johnny and Amanda Wade to Plaintiff’s Motion for                    1422
Traditional Summary Judgment on Defendants’ Counterclaims and Plaintiff’s Motion
to Dismiss Under Rule 91a
       Filed September 9, 2014
Response of Johnny and Amanda Wade to Plaintiff’s Motion for Show Cause Order     1534
for Contempt and to Levy Sanction Award
      Filed September 26, 2014

Charge Of The Court                                                               1539
      Filed October 6, 2014

Verdict                                                                           1541
       Filed October 6, 2014

Plaintiff James E. Wade's Motion For Judgment Non Obstante Verdicto               1559
        Filed October 15, 2014

Request For Denial Of Plaintiff's Motion For Judgment Non Obstante Verdicto and   1589
Defendants' Motion For Entry Of Judgment
      Filed October 22, 2014

Final Judgment                                                                    1599
       Filed November 17, 2014

Order Denying Plaintiffs' Motion For Judgment Notwithstanding The Verdict         1602
      Filed November 17, 2014

Plaintiff's Motion For New Trial                                                  1603
        Filed December 12, 2014

Order Denying Motion For New Trial                                                1633
      Filed January 26, 2015

James E. Wade's Notice Of Appeal                                                  1634
     Filed February 12, 2015

Plaintiff's Letter To Vicki Kanewske Requesting The Reporter's Record             1637
        Filed February 20, 2015

Plaintiff’s Request for Preparation of Clerk’s Record                             1640
        Filed February 20, 2015

Defendant’s Request for Preparation of Clerk’s Record                             1644
      Filed March 11, 2015

Defendant’s Letter to Vicki Kanewske Requesting Reporter’s Record                 1647
      Filed April 3, 2015

Bill of Cost                                                                      1649

Clerk’s Certification that Appellate Record is True and Correct                   1650
                                           CAUSE NO. P9!27

IN THE ESTATE OF                                  §                         IN THE COUNTY COURT
                                                  §
EBEtt WPidence introduced here m1de1 oath
                and  such exhjhjts, j f any, as ha"e been introduGed for youF eonsicleFa-tion under
                the rulings of the Court - that is, what you have seen and heard in this courtroom
                together with the law as given you by the Court. In your deliberations, you will
                not consider or discuss anything that is not represented by the evidence in this
                case.

        3.      Since eve1y answet that is requtreQ Oy t:lle cnarge rs Important, no Juror siioula:
                state or eonsidet that ru:ry tequhcd atJswer is not hnpoitant.

       4.       You must not decide who you think should win, and then try to answer the
                questions accordingly. Simply answer the questions, and do not discuss nor
                concem yourselves with the effect of your answers.
       5.       You wi]] not decide the answer to a question b~l lot Gt: b~l ~~~[ing st:Fa¥iS, e:F by
                any other method of chance. Do not return a quotient Y:erdict 8 quotient :llerdict
                means that the jurors agree to abide by the result to be reached by adding together
                each juror~s figures and dividing by the number of jurors to get an average. Do
                not do any trading on your answers; that is, one juror should not agree to answer a
                certain question one way if others will agree to answer another question another
                way.

                                                                                                        1539
        6.      Unless otherwise instructed, you may answer a question upon the vot_;-nf~or
                more jurors. If you answer more thJlll one question upon the vote of~or more
                jurors, the same group of at least t&iil of you must agree upon the answers to each
                of those questions.
       These jngtnwtjons are gjven yov because your conduct is subject to r:evieu' the same as
that of the witnesses, parties, attorneys and the judge. If it should be found that you have
disregarded any of these instructions, it will be jury misconduct and it may require another trial
by another jury; then all of our time will have been wasted.

       The presiding juror or any other who observes a violation of the Court's instructions shall
innnediately want tire one who is violating the srune and caution die juror not to do so again.

       When words are used in this charge in a sense that varies from the meaning commonly
understood, you are given a proper legal definition, which you are bound to accept in place of
any other meaning.

       Answer "Yes'' or "No" to all questions unless otherwise instructed. A "Yes" answer
must be based on a preponderance of the evtdence unless you are otherwise instructed. If you do
not hnd that a preponderance of the evtdence supports a • Yes answer, ilien answer ..No.'

        The term ''preponderance of the evidence,, means the greater weight of credible evidence
admitted in this case. A preponderance of the evidence is not measured by the number of
witnesses or by the number of documents admitted in evidence. For a fact to be proved by a
preponderance of the evidence~ you must find that the fact is more likely true than not true.
Whenever a question requires an answer other than ~~Yes" or "No,'~ your answer must be based
on a preponderance of the evidence unless you are otherwise instructed.t

SIGNED October      fn   >   2014

                                                        PRESIDING JUDGE

                                                                  ~                        /)
                                                                  ~~~~/)A                            JJ /_/I-/
                                                              B
                                                                  {~"-:.~          ,   R    C~~TYr]EX";DEPUTY
'See Texas Pattern Jury Charge (Business, Consumer, Insurance, Empllent)   ~   12) ("PJC") I 00.3.    \

                                                    2

                                                                                                             1540
----------------------------------------------------------------------~~~~--

    ESTATE OF                                       §              COUNTY COURT AT LAW
                                                    §
    EDELL WADE,                                     §              OF
                                                    §
    DECEASED                                        §              BURNEt C(JUNI\i,TEXAS

                                           QUESTION NO. 1

           A relationship of trust and confidence existed because Edell Wade justifiably placed trust
                 • · ;n ~    ·Wade.

    Did Johnny Wade's acceptance of the Modification Agrectnent comply wtth fits hductary duty to
    Edell Wade?

    Because a relationship of trust and confidence existed between them, Johnny Wade owed Edell
    \Vade a fiduciary duty. To prove he complied v,:ith his duty, Johnny Wade must shovv---

    a.      the transaction in question was fair and equitable to Edell Wade~ and

    b.      Johnny Wade made reasonable use of the confidence that Edell Wade placed in him~ and

    c.     Johnny Wade acted in the utmost good faith and exercised the most scrupulous honesty
    toward Edell Wade; and

    d.      Johnny Wade placed the interests oi Edell Wade before fits U\VI1, dtd not use the
    advantage of fits posttlon to gmn any benefit for htmself at the expense of Edell Wade, and did
    not place himself in any position where his self-interest tnight conflict with his obligations as a
    fiduciary.

    You are further instructed that a fiduciary dut~y ovved by one person to another extends Only to
    dealings within the scope of the fiduciarv relationship between_ the parties.

    Ans"\\1-cr "'Yes"' or "No".

    Answer:

                                                         FILED TI-llS   \.o_R·t"=   DAY
                                                                                          ~
                                                                                          0~   A.'D.    11
                                                                                                       20

                                                         ~       ~TY,TEXASDEPUTY

                                                                                                            1541
                              CERTIFICATE AS TO .JURY QUESTION NO. 1

            We, the jury, have ans"\\-Tered the above and foregoing question as herein indicated, and

    here'\\1-ith retum sarrie into Court as our verdict.

            (To be signed by the presiding juror if unanimous.)

                                                           Presiding Juror

            (To be signed by those rendering if not unanimous.)
                                       /                            /,           ___...,
          ./7        ,P         //                             [/ /          <      /            /
    / / -.-1'              Y/C::                               ~0                1t9V-'7v----'
                       ~/                                                    ;l
)fiJ;u.
                                                                                           I_

                ,_
                     ..........
                               't.
                                , ''   £   ,_.,t:'J
                                                -,              ~    I
                                                                             ?~
                                                                     \
/"'>

(           -     ~\..L...,. \c..}(.J..t..._,
     ~·
    II

                                                                                                     1542
                                            ~   , n~F ""'~   DO',~

ESTATE OF                                              §             COUNTY COURT AT LAW
                                                       §
EDELL WADE,                                            §             OF
                                                       §
DECEASED                                               §             BURNE I CIJUN I 'Y, IEXAS

                                            QUESTION NO.2

       A relationship of trust and confidence existed because Edell Wade justifiabh-- placed trust
"ncl   ~-          ;n   A       "·   WmlP                                       '       ·

Did Arnanda Wade's acceptance of the Modification Agreement comply w1th her hductary dut~y
to Edell Wade?

Because a relationship of trust and confidence existed betw-een them, Amanda Wade owed Edell
Wade a fiduciary duty. To prove she cotnplied with her duty, Amanda Wade must show---

a.     the transaction in question was fb.ir and equitable to Edell Wade; and

b.     Amanda Wade made reasonable usc of the confidence that Edell Wade placed in her; and

c.     Amanda Wade acted in the utmost good faith and exercised the most scrupulous honesty
toward Edell Wade; and

d.      Amanda Wade placed the interests of Edell Wade Detore Fler 0\.Vll. (hQ not usc tfie
advantage of her posttton to gain any bencht for fierself at tfie expense of Edell Wad c. and did
not place herself in any position vvhere her self-interest might conflict '\vith her obligations as a
fiduciary.

You are further instructed that a fiduciary duty O'\ved by one person to another extends only to
dealings within the scoQ:e of the fiduciarv relationship between the parties.

Answer   ·•Yes~·   or ""No'".

JS;nswer~

                                                                                                 1543
                       CERTIFICATE AS TO JURY QUESTION NO. 2

        We, the jury, have answered the above and foregoing question as herein indicated., and

here"\\:ith return same into Court as our verdict.

        (To be signed by the presiding juror if unanimous.)                   /

                                                      /-~/~~'                      -"   _
                                                                                        _,   __
                                                     P~ding Jliror
                                                                   /
        (To be signed by those rendering if not unanimous.)

                                                                                                  1544
                                         CASE NO. P9127

IN THE ESTATE OF                              §              IN THE COUNTY COURT
                                              §
EDELL WADE,                                   §                  AT LAW
                                              §
DECEASED                                      §              BURNET COUNTY, TEXAS

       If you have answered ''no" to Question No. 1 or Question No. 2, then answer the
following Q11estion Otherwise_ do not ansv.rer the folloudng Q11estion

                                        QUESTION NO. 3

       What sum of money, if paid now in cash, would fairly and reasonably compensate the
Estate of Edell Wade for its damages, if any, resulting from either Johnny Wade or Amanda
\Vade's failure te eompl)i nith his/hCI fidueiat) duty to Edell Wade?

The loan modification resulted in a difference, calculated as:

       a.     the total amount Johnny and Amanda would have paid Mrs. Wade or her estate
under the terms of the February 6, 2004 Promissory Note, had it not been modified, from May I,
2009 through today; and

         b.    the total runount Johnny and Amanda actually pa1d from ·hl&j      5   28E13 through
today.                                                                    ("\a '/ t , ;).. DOCf

Answer in dollars and cents, if any.

 nswer:

                                                                                                  1545
                       CERTIFICATE AS TO JURY QUESTION NO . .:!

        We, the jury, have answered the above and foregoing question as herein indicated, and

herewith return saJile into Court as our verdict.

       (To be signeO 6y tFie prestOtngJuror If unanimous.)

                                                    Presiding Juror

       (To be signed by those rendering if not unanimous.)

                                                                                         1546
                                       CASE NO. P9127

IN THE ESTATE OF                             §              IN THE COUNTY COURT

EDELL WADE,                                  §                  AT LAW
                                             §
DECEASED                                     §              BURNET COUNTY, TEXAS

        Answer the following question only if you answered ""No" to Question No. 1 or Question
N<> 2   Other>vise, d<> n<>t ans"'er the f<>li<>wing questi<>n.

      To answer aYes~~ to any part of the following question, your answer must be unanimous.
Otherwise. you must not answer that part of the following question.

                                       QUESTION NO. 4

        Do you :Gn:d by clear and convincing evidence that the harn1 to Edell Wade resulted fr:otn
intentional bteaeh of fidueiat} dut} "' self-dealing ?

       HClear and convincing evidence" means the measure or degree of proof that produces a
firm belief or conviction of the truth of the allegations sought to be established.

Answer:

                                                                                              1547
                      CERTIFICATE AS TO .JURY QUESTION NO 4

       We, the jury, have answered the above and foregoing question as herein indicated, and

herewith return same into Court as our verdict.

       (To be stgned by the prestdtng JUror If unammous-)

                                                  Presiding Juror

       (To be signed by those rendering if not unanin1ous.)

                                                                                        1548
                                         CASE NO. P9127

IN THE ESTATE OF                              §              IN THE COUNTY COURT
                                              §
EDELL WADE,                                   §                  AT LAW
                                              §
DECEASED                                      §              BURNET COUNTY, TEXAS

         Answer the following question only if you unanimously answered "Yes" to Question No.
4    Otherwise, do not an surer the follourjng qvestjon

You must unanimously agree on the amount of any award of exemplary damages.

                                        QUESTION NO. 5

What swn of money, if any, if paid now in cash, should be assessed against Johnny Wade and
Atnanda Wade and awrudcd to the Estate of Edell Wade as cxentplary dmnagcs, if any, fot d!C
emuiuet feuad in response to Question 4?

''Exemplary damages" means an amount that you may in your discretion award as a penalty or
by way of punishment.

Factors to consider in awarding exemplary damages, if any, are-

I.       The nature of the wrong.
2.       The character of the conduct involved.
3.       The degree of culpability of Johnny Wade and Amanda Wade.
4.       The situation and sensibilities of the parties concerned.
5.       The extent to which such conduct offends a public sense of justice and propriety.
6.       The net worth of Johnny Wade and Amanda Wade.

Answer 1n dollars and cents, if any.

~nsvver:   ___________________________

                                                                                             1549
                         CERTIFICATE AS TO JURY QUESTION NO. !'i

       We, the   jury~   have ans'\\•ered the above and foregoing question as herein indicated, and

herewith return same into Court as our verdict.

       (lobe signed by the presiding Juror 1l unannnous.)

                                                   -~~------------

                                                   Presiding Juror

                                                                                               1550
ESTATE OF                                                  §    COUNTY COURT AT LAW
                                                           §
EDELL WADE,                                                §    OF
                                                           §
DECEASED                                                   §    BURNETCOUNIY, IEXAS

                                             JURY QUESTION NO.6

The Court instructs that, if you found that the Modification Agreement V\iaS wrongfully procured
in breach of fiduciary duty or othenNise, then, for purposes of determination ofattomeys' fees, if
any., the 2004 Promissory Note is in default and the Plaintiff shall be awarded attomeys' fees. Tf
you found that the Modification Agreement \Vas '\VYongfully procured, then answer the follov.ring
question. Othenvise, do not answer the following question.

          1.         What is a reasonable fee for the necessary services of James   '"'Bud~'   Wade and
                     Nancy Wade Bums' attorneys, stated in dollars and cents?

A.n~wer   u·ith   <.'!Il   amount for each of the follou·ing·

   (1)         For representation in the trial court.

~nswer:    ________________

   (2)         For representation through appeal to the court of appeals.

   (3)         For representation at the petition fOr review stage in the Supreme Court of Texas.

~nsvver: --------------~

   (4)         If accepted, for representat1on at the ments bnehng stage and tfuough oral argument
               and the completion of proceedings in the Supreme Court of TL:xas.

i\nswer: ______________~

                                                                                                    1551
                      CERTIFICATE AS TO JURY QUESTION NO. 6

       We, the jury, have ans'\.vered the above and foregoing question as herein indicated., and

herewith return same into Court as our ·verdict.

       (Io be stgncd by the presiding Juror If unanimous.)

                                                   Presiding Juror

       (To be signed by those rendering if not unanimous.)

                                                                                            1552
                                        CASE NO. P9127

IN THE ESTATE OF
                                             ~
                                                            IN THE COUNTY COURT
EDELL WADE,                                  §               AT LAW
                                             §
DECEASED                                     §              BURNET COUNTY, TEXAS

                                       QUESTION NO 7

       Did AMANDA WADE comply with her fiduciary duty in connection with her
administration of the Estate of Edell Wade?

        In administering the estate, AMANDA WADE owed the beneficiaries of the estate a
fiduciary duty. To prove she complied with this duty in connection with Modification
Agreement, ~~I\.'l~d'.fBA WABE rnust show that, drning her adrninistra:tion of the estate of EOetl
ni:...>..          .

I.  the administration of the estate was fair and equitable to the beneficiaries, considering
AMANDA WADE's obligations in administering the estate; and

2.     AMANDA WADE made reasonable use of the confidence placed in her as the result of
ner appomunent; and

3.      AMANDA WADE acted in the utmost good faith and exercised the most scrupulous
honesty toward the beneficiaries in connection with the estate administration in question; and

4.      AMANDA WADE placed the interests of the beneficiaries before her own and did not
use the advantage of her :Q:Osition to gain any benefit for herself at the expense of the
beneficiaries; and

5.     AMANDA WADE fully and fairly disclosed to the beneficiaries all material facts known
to AMANDA WADE conceming the estate in question that might affect the rights of the
beneficiaries.

            Answer "Yes" or 11 No."

            Answer:      ~~s

                                                                                              1553
                      CERTIFICATE AS TO JURY QUESTION NO. 7

       We, the jury, have answered the above and foregoing question as herein   indicated~   and

herewith return same into Court as our verdict.

       (Io be s1gned by the presJdmgJuror 11 unammous.)__~                      /

       (To be signed by those rendering if not unanin1.ous.)

                                                                                             1554
                                      CASE NO. P9127

IN THE ESTATE OF                           §              IN THE COUNTY COURT

EDELL WADE,                                §               AT LAW
                                           §
DECEASED                                   §              BURNET COUNTY, TEXAS

                                     QUESTION NO. 8

       Did Amanda Wade act in good faith, whether successful or not. in defending the action
for her removal?

        "Good FaithH means an action that is prompted by honesty of intention and a reasonable
belief that the action was probably correct?

ANSWER: _ _v:;'---"-c_s_·'-----

                                                                                           1555
                      CERTIFICATE AS TO .JURY QUESTION 1"10 !!

       We, the jury, have answered the above and ft)regoing question as herein indicated, and

herewith return same into Court as our verdict.

       (To be signed by those rendering if not unanimous.)

                                                                                         1556
                                         CASE NO. P9127

IN THE ESTATE OF                               §              IN THE COUNTY COURT
                                               §
EDELL WADE,                                    §               AT LAW
                                               §
DECEASED                                       §              BURNET COUNTY, TEXAS

If you answered "yes'' to Question 8, then answer Question 9. Otherwise, do not answer

                                        QUESTION NO. 9

       What sum of money do you find to be the necessary expenses and                disbursements~
including reasonable attorney's fees, for defending this action for removal?

       Answer in dollars and cents for each of the following:

              For representation in the trial court

              Answer:~ 3 3 3           ChJ 0

              2.        For representation through appeal to the court of appeals.
                                           n-<>
               A   ns"'er 1/;.20; oDD ·-

              3.        For representation at the petition for review stage in the Supreme Court of
                        Texas.
                                           oo
              Answer:      :j} ·75 DD     ·-

              4         For representation through oral argument and the completion of
                        proceedings in the Supreme Court of Texas.

                                           nS!--
              Answer:$       /0,0 c? O

                                                                                               1557
                     CLERK'S CERTIFICATE THAT APPELLATE RECORD
                                IS TRUE AND CORRECT

THE STATE OF TEXAS                  §
                                    §
COUNTY OF BURNET                    §

     I, Janet Parker, Clerk of the County Court of Burnet County, Texas do hereby certify that
the documents contained in this record to which this certification is attached are all of the
documents specified by Texas Rules of Appellate Procedure 34.5(a) and all other documents
timely requested by a party to this proceeding under Texas Rules of Appellate Procedure
34.5(b).

    GIVEN UNDER MY HAND AND SEAL at my office in Burnet County, Texas on this the
16th day of April, 2015.

                                                                JANET PARKER,
                                                                 Burnet County Clerk
                                                                 220 South Pierce Street
                                                                 Burnet, Texas 78611

                                                                                           1650