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R97-036 RESOLUTION NO. R97~ A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOYNTON BEACH, FLORIDA, AUTHORIZING AND DIRECTING THE MAYOR AND CITY CLERK TO EXECUTE A WATER SERVICE AGREEMENT BETWEEN THE CITY OF BOYNTON BEACH AND D.J.M. INTERNATIONAL ENTERPRISES, INC.; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the subject property is located at 12608 S. Military Trail, in the unincorporated portion of our service area; and WHEREAS, water and sewer service was recently made available to this parcel by the adjacent development; WHEREAS, City policy requires annexation of the property to be serviced at the earliest practicable time, as a conditmon of the granting of water services outside its jurisdictional limits; NOW, THEREFORE, BE IT RESOLVED BY THE CITY CO594ISSION OF THE CITY OF BOYNTON BEACH, FLORIDA, THAT: Section 1. The Mayor and City Clerk are hereby authorized and directed to execute a Water Service Agreement between the City of Boynton Beach, Florida and D.J.M. International Enterprises, Inc., said Agreement being attached hereto as Exhibit "A". Section 2. This Resolution shall become effective immediately upon passage. PASSED AND ADOPTED thiS ~ day of March, 1997. Ci~ Clerk Mayor ~Tice Mav~r TI{IS INSTR~3~4ENT PREP~i~ED BY: James A. Cherof, Esquire Josias & Goren, P.A. 3099 East Commercial Blvd. Suite 200 Ft. Lauderdale, FL 33308 AGREEMENT FOR WATER SERVICE OUTSIDE THE CITY LIMITS AND COVENANT FOR ANNEXATION THIS AGREEMENT made on this day of , 19 , by and between hereinafter called the "Customer", and the CITY OF BOYNTON BEACH, a municipal corporation of the State of Florida, hereinafter called the "City". WHEREAS, Customer owns real property outside of the jurisdictional limits of the City of Boynton Beach, Florida; and WHEREAS, Customer has requested that the City of Boynton Beach, Florida provide water service to the property owned by Customer; and WHEREAS, the City of Boynton beach has the ability to provide water service to Customer's property; and WHEREAS, the City of Boynton Beach has a policy which conditions the grant of water services outside of its jurisdictional limits on annexation of the property to be serviced into the City at the earliest practicable time. NOW THEREFORE, for and in consideration of the privilege of receiving water service from the Municipal Water System and the mutual covenants expressed herein, the City of Boynton Beach and the Customer, his heirs, successors and assigns, agree as follows: 1. The City agrees to provide Customer with water service from its Municipal Water System to service the real property described as follows and which Customer represents is owned by Customer: 2. The Customer and the City hereby agree that there are Equivalent Residential Connections which City shall service. 3. The Customer agrees to pay all costs and fees of engineering, material, labor, installation and znspection of the facilities as required by the City of Boynton Beach Code of Ordinances or Land Development regulations to provide service to the Customer's premises. The Customer shall be responsible for installation in conformance with all codes, rules and regulations applicable to the installation and maintenance of water service lines upon the Customer's premmses. Ail such lines shall be approved by the Director of Utilities and subject to inspection by the City Engineers. The City shall have the option of either requiring the Customer to perform the work necessary to conform the lines or the City may have the work performed on behalf of the Customer, in which case the Customer will pay in advance all estimated costs thereof. In the event the City has such work performed, the Customer will also advance such additional funds as may be necessary to pay the total actual costs incurred by the City. 4. Any water main extension made pursuant to this Agreement shall be used only by the Customer, unless written consent is granted by the City of Boynton Beach for other parties to connect. Ail connections shall be made in accordance with the Codes and regulations of Boynton Beach. 5. Title to all mains, extensions and other facilities extended from the City Water Distribution System to and including the metered service to Customer shall be vested in the City exclusively'unless otherwise conveyed or abandoned to the property owner. 6. The Customer agrees to pay all charges, deposits and rates for service and equipment in connection with water service outside the City limits applicable under City Ordinances and rate schedules which are applicable which may be changed from time to tmme. 7. Any rights-of-way or easements necessary to accommodate the connections shall be provided by the Customer to the City. 8. The Customer shall, contemporaneously execute and deliver to the City an Irrevocable Special Power of Attorney granting to the City the power and authority to execute and advance on behalf of the Customer a voluntary petition for annexation. Customer covenants that it shall cooperate with the City and not raise opposition or challenge to such annexation if and when annexation is initiated. The property shall be subject to annexation at the option of the City at any time the property is eligible under any available means or method for annexation. Customer will inform any and all assigns or purchasers of any or part of this property of this covenant and of the irrevocable special power of attorney, but Customer's failure to provide such notice shall not constitute a defense or bar to the City's rmghts as set forth herein. The Customer acknowledges that the consideration of initially connecting to the City's water supply is sufficient to support the grant of the power of attorney any subsequent disconnection or lack of service shall in no way impair the power of attorney nor constitute a diminution or lack of consideration. 9. The Customer acknowledges that this covenant regarding annexation is intended to be and is hereby made a covenant running with the land described in paragraph 1 above. This Agreement and the power of attorney referenced herein is to be recorded in the Public Records of Palm Beach County, Florida, and the Customer and all subsequent transferee, grantees, heirs or assigns of Customer shall be binding on the Customer and all successors and assigns. 10. It is agreed that the City shall have no liability in the event there is a reduction, impairment or termination in water service to be provided under this Agreement due to any prohibitions, restrictions, ].imitations or requirements of local, regional, State or Federal agencies or other agencies having jurisdiction over such matters. Also, the City shall have no liability in the event there is a reduction, impairment or termination of water service due to acts of God, accidents, strikes, boycotts, blackouts, fire,, earthquakes, other casualties or other circumstances beyond the City's reasonable control. 11. The Customer hereby agrees to indemnify, defend and hold harmless the City of Boynton Beach, Florida, its Mayor, Members of _ 3 the City Commission, Officers, employees and agents (Both in their individual and official capacities) from and against all claims, damages, law suits and expenses including reasonable attorneys fees (whether or not incurred on appeal or in connection with post judgment collection) and costs rising out of or resulting from the Customer's obligation under or performance pursuanu to this Agreement. 12. No additional agreemenus or representations shall be binding on any of the parties hereto unless incorporated in this Agreement. No modifications or change in this Agreement shall be valid upon the parties unless in writing executed by the parties to be bound thereby. IN WITNESS WHEREOF, the parti.es hereto have set their hands and seals this !~ day of ~ , 199--7. WITNESS: (Ai o n er) CUSTOMER AS OWNER (S) : (Print name) Secretary (P. rint name)~. /~/2 (CORPORATE NOTARIZATION) FOR CORPORATE NOTARIZATION: STATE OF FLORIDA ) ) SS: COUNTY OF PALM BEACH) I HEREBY CERTIFY that on this day, before me, an officer duly authorized in the State aforesaid and in the County aforesaid to take acknowledgments, personally appeared ,~. ~/~(~ ~~j~3 to me known to be the person(s) described in a~d who e~ecuted the foregoing instrument that he/she acknowledged before me that he/she executed the same; that the individual was personally known to me or provided the following proof of identification: _F£. ~6L. klc~ (N~ Seal) WITNESS my hand and official seal in the County and State last aforesaid this ~ ~ day of ~ , 199~ Notary Public WITNESS: CITY OF BOYNTON BEACH, FLORIDA Mayor ATTEST: Cit~ Clerk STATE OF FLORIDA ) ) SS: COUNTY OF PALM BEACH) I HEREBY CERTIFY that on this day, before me, an officer duly authorized in the State aforesaid and in the County aforesaid to take acknowledgments, personally appeared ~J'~t~ ~,~/0 ~ , Mayor and ~~Q~ /~ ~r~ , City Clerk respectively, of the City named in the foregoing agreement and that they severally acknowledged executing same in the presence of two subscribing witnesses freely and voluntarily under authority duly vested in them by said City and that the City seal affixed thereto is the true corporate seal affixed thereto is the true corporate seal of said City. WITNESS my hand and official seal in the County and State last aforesaid this ~ day of /~cc~ , 1997. .~ (Notary Seal) ...-~.- -.?~% =.: :.: MY C01V~AISSION ~ CC276705 EXPIRES '&~ ~'F ~ ;~-" i~ONDED THRL! TR~Y FAIN INSUt~, INC, Approved as to form: City A~~ - Notary Public JAC/lms 900182 12/12/95.rev WATERSRV.1 5 TEIS INSTRUMENT PREPARED BY: James A. Cherof, Esquire Josias & Goren, P.A. 3099 East Commercial Blvd. Suite 200 Ft. Lauderdale, FL 33308 IRREVOCABLE SPECIAL POWER OF ATTORNEY (By Individuals) STATE OF FLORIDA "Grantee", hereby make, constitute, and appoint THE CITY OF BOYNTON BEACH, FLORIDA, true and lawful attorney mn fact for Grantee and in Grantee's name, place and stead, for the sole purpose of executing on behalf of Grantee the power to initiate, maintain, and complete a voluntary petition for annexation of the real property described herein into the CITY OF BOYNTON BEACH. This power shall extend to the CITY OF BOYNTON BEACH full and complete authority to act on Grantee's behalf to accomplish annexation by any available means. The real property which is the subject of this power is described as follows: The powers and authority of my attorney, THE CITY OF BOYNTON BEACH, FLORIDA, shall commence and be in full force and effect on the / ~ day of f~ , t9~ .~ and the powers and authority shall be irrevocable by Grantee. IN WITNESS WHEREOF, we have hereunto sen our hands and seals the / ~ day of F ~3 in the year one thousand nine hundred and ninety . ~and delivered in the presence of Witness ~ri~t name STATE OF FLORIDA COUNTY OF PALM BEACH ss: THE FOREGOING INSTRUMENT was acknowledged before me this , who are known to~ or who have produced , as identification and who did/did not take an oath. ROBERT EOWARL' ~LOT COMMI~iON f Co 243308 EXPIRE~ My Commission Expires: POA. IND Type or Print Name Commission No. Prepared Jlhl~ W~ iI~XW, MOWLZM & MOWLXH, P.A. 50 S.K. Fourth Avenue Delray Beach, FL 33483 Property Control No.: 00 42 46 O1 00 000 '~]90 b CORRECTIVE WARRANTY DEED TlZf XW~,iITI/I~, mede this the _~day of March, 1993, between JOHN J. GUARINE, a single men, end CHLOE P. GUARINE, a ;ingle woman, of the State of Florida, Grantor, end DJM INTERNATIONAL ENTERPRISES, INC., a Florida corporation, whose post office address is: 4100 South Military Trail, City of Lake Worth, County of Palm Beach, State of Florida 33453, Grantee. WZT~, that said Grantor, for and in consideration of the sum of TEN AND 00/100 ($10.00) DOLLARS, and other good and valuable considerations to said Grantor in hand paid by said Gramtee, Lne receipt whereof is hereby acknowledged, has granted, bargained amd sold to the said Grantee, and Grantee's heirs and assigns forever, the following described land, situate, lying and belng in Palm Beach County, Florida, to-wit: South 170.29 feet of Northwest quart=er of Northwest quarter of Southwest quarter of Section 1, Township 4~ South, Range 42 East (less West 60 feet for right-of-way of State Road 809) · ~BJ~C~ restrictions, reservatio;m and easements of record, if any; taxes subsequent to the year 1992 and all valid zoning ordinances. ~ said Grantor does hereby fully ~arrant the title to said lend, and will defend the same against the lawful claims of all persons whomsoever. TNXS ~XWE WA~/~M~A-Z DEED is given by Grantors to correct an erroneous legal description contained l:~ that certain Warranty Deed from Grantors dated November 30, 19~2 to Grantee, recorded in Official Record Book __, pegs , of the Public Records of Palm Beech County, Florida. IW W~TE~WHE~F, Grantor has hereunto set Grantor's hand and seal the day and year first above written. Signe~, sealed and delivered in our presence: ~,~' ., . ' ~.~.~ ~'~.. - ; ~-CflLOE P. UAR~NE ' ST]LTE OF IeL~XDA COUlTer OF PALM BEACH : Z~YC~T. TX~y that on this day, beEore me, an officer duly authorized in the State and County aforesaid to take acknowledgments, personally appeared JOHN J. GUARINE and CHLOE P. G~RINE, well known to me to be the persons described in and who executed the foregoing instrument in the presence of two subscribing witnesses, an4 acknowledged before me that they executed the same for the purposes therei~ stated. WXTN~ my hand and official sea] in the County and State last aforesaid, this the _~_~ day of March, ~993. Car/ E. Siegel, ~+u..~-e,4 Saegel ~, Li.pran 5355 ~ Cer~ter ~::~ad, Suite 801 Boca RatX:~, ~lorida 33486 NOWLIN & NOWLIN, P.A. ~/ S0 SE FOUR~ AVENUE DEL~AY BNACH, FL 33483 THIS GORRECTIVE MORTGAGE DEED Executed the 2~th day of ~r~, A.D., 1993 by DoM INTERNAT~ON~J~ ENTERPRISES, INC., hereinafter called the mortgagor to CHLOE P. GUARINE and NANCY M. SMOOT, as Joint Tenants with Right of Survivorship, hereinafter called the mortgagee: ¢~,~ terns 'Bottling' ~ 'lim'tgagee' t~u~e lit tH ~rtiss to this instrument ,~ the ~tr$, W X T i B S S B T n, that f~r good and valuable considerations, and also in considers=ion of =he aggregate sum n~ in the promissory note of even fla~e herewith, hereinafter descri~, the mortgagor hereby grant:s, bargains, sells, alieno, r~ises, conveys and confirms unto the mortgagee all the certain land of which the mortgagor is now sei:=~and in possession situate i~ P.lm Beech County, Florida, viz: SouCh 170.29 feet of Nor=hwes~ quarter of NorthwesC que~er of Southwest quarter of Section 1, Township 46 South, Range 42 East (less West 40 feet for right-of-way of State Road 809) b ~ nd ~o Hold =he same, toga=her with the =eflemen=s, her~it~en=s en~ e~pur=enences =he=e~:o belongiflg, and the ren~s, issues end ~rofi=s =he=eof, unto =he mo=~egee, in fee simple. ~ the mortgagor covenants ~ith the mortgagee that the mo~tga~r is indefeasibly seiz~ of said land in ~ee simple; that the ~rtgegot has good right and lawful authority to conve~ said land as aforesaid; that the mortgagor will make such ~urther assurances to perfect the fee simple tit~e to said land in the mortgagee as ma~ reasonab!~ be tequir~t~ that the mortgagor here~ ~ull~ warrants the title to said land and will defend the against the lawful claims of all persoJts whomsoever; and that said land Es free and clear of all encu~r~lncee except taxes for 1992 and subs~uent years. ~ ~ays? that if said mortgagor shall pa~ unto said ~ort~a~ee the certain promissor~ note hereinafter substantially copi~ or identified, to wit: NO-TE. 01~ 77/~9 p~ ~ 010,0~0.00 Boca R~ton, F~ , ' :, : · , , , ~ .~t~ rm~t o J. Z~'rIoML E~ZSES, and shall perfo~, compZy with and ;~lde ~ each and every the a~emnts, stipulations, conditions, and covenants thereof, and of this ~gage, then thin =or:gage and ~he estate hereby created, shall cease, dare.ne and be null and void. ~ ~he ~r~gagor hereby further covenants and agrees ~o ~y pr~ptly when due :he princi~ and interest and other s~s of ~n~ provid~ for in said note and t:his mortgage, or ei:her~ to ~y all and sine,ar the 1:axes. assassin.s, levies, li~ilities, obligations, and encu~ra~{ces of ever~ nature on said proper:y} ~o ~, co~i: or suffer no was:e, J~3ai~ent or deterioration of said land or the i~rovmments thereon a: any :~e; ~o keep the buildings n~ or hereaf=ez- on enid /and fully insured in a s~ of not lees :han ful~ insur~le va~ue in a co~ny ot c~anies accept~le to the mortgagee, the ~licy or policies to be held by ~d ~y~le to, said ~gee, and ~n the event any sum of ~aey ~c~e ~yab~e by v~ue o~ such im~urance the mortgagee shall have ~he right to receive and apply the same to :he indebt~nesa hereby eecur~, accounting ~o :he mortgagor for any su~lus~ to ~y all costs, charges, and e~enses, including attorneys fees and title searches, reason~l7 incurr~ or ~id by :he mo~gagee ~cause of the failure of ~he mo~gagor ~o pro~tly and fully ~Co~!Fwi:h the a~e~en:e, stipule:ionia, conditions and covenants of said :~o:e and this mortgage, or either; :o perfo~, comply wi~h ~ ~lnd ~bide by each and every' t he' agreements, stipulations, conditions end covenants set forth in said note and this mortgage 9r e'ither. In the event the mortgagor fails to pay when due any tix, assessment, insurance premium or other su~ of money payable, by virtue of said note and this mortgage., or either, the mortgagee may pay the same, without wa£ving or affecting the option to foreclose or any other right hereunder, and all such payments shall bear interest from date thereof at the highest lawful rate then allowed by the laws of the State of Florida. Xf any sum of money herein referred to be not promptly paid within 30 d~ys next after the some becomes due, or if each and every of the agreements, stipulations, conditions and covenants of said note and this mortgage, or eli:her, are not fully performed, complied with and abided by, then the entire sum mentioned in said note, end this mortgage, or the satire balance unpaid thereon, shall forthwith or thereafter, at the option of the mortgagee, become and be due and payable, anyt:~ing in said note or herein to the contrary notwithstanding. Failu.re by the mortgagee to exercise any of the rights or options herein p~ovided shall not constitute i waiver of any rights or options under said note or this mortgage accrued or thereafter accruing. THIS CORRECTIVE MOI~TGAGE DEED is given to correct the legal description on that certain MORTGAGE DEED executed by mortgagor on the 10th day of December, ~992, and recorded in Official Record Book 7523, page 1553. of the Public Records of Palm Beach County, Florida. ' ~ UZ~ WHBRBOF, the said mortgagor has hereunto signed and sealed those presents the day and year first above written. Signed, smalod and delivered in the p~maence of: S~c,a S~te o~ FlOrida AMERICAN LAND TITLE ASSOCIATION OWNER'S POLICY 4..~90 (Florids ModlOed) OWNER'S POLICY OF TITLE INSURANCE ISSUED BY AMERICAN PIONEER TITLE INSURANCE COMPANY POLICY NO. 0P-5-0472-34[ SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B AND THE CONDITIONS AND STIPULATIONS, AMERICAN PIONEER TITLE INSURANCE COMPANY, a Florida corporation, herein called the Company, insures, as of Date of Policy shown in Schedule A, against loss or damage, not exceeding the Amount of Insurance stated in Schedule A, sustained or incurred by the insured by reason of: 1. Title to the estate or interest described in Schedule A being vested other than as stated therein; 2. Any defect in or lien or encumbrance on the title; 3. Unmarketability of the title; ~ 4., Lack of a right Of access to and from the land. The Company will also pay the costs, attorneys' fees and expenses incurred in defense of the title, as insured, but only to the extent provided in the Conditions and Stipulations. IN WITNESS WHEREOF, AMERICAN PIONEER TITLE INSURANCE COMPANY has caused this policy to be signed and sealed as of the Date of Policy shown in Schedule A, the policy to become valid when countersigned by an authorized signaWry. Issued by. AMERICAN PIONEER TITLE INSURANCE COMPANY Secretary The ~ ~ are expre~ excluded from the coverage of this policy ~ the Company will not pay loss or damage, costs, attorneys' fees or exbenees which 1. (a} Any law, ordinance or governmental ragulation (including but not limited to building and zoning laws, ordinances, or regulations) rasthcting, regulating, prohibiting or ralming to (i} the occupancy, use, or enjoymant of the land; (ii) the character, dimensions or location of any improvement now or hereafter erected on the land; (iii) a sepan~ in owne~-ship or a cl~nge in the dimensions or area of the land or any parcel of which the land is or was a part or (iv) environmental protection, or ~ elfect of any viofation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defeot, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. lb} Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect lien or encumbrance resutiing from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. 2. Rights of eminent domain unless nolice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurr~ prior to Date of Policy which would be binding on the fights of a purchaser for value without knowledge. 3. De, ds, liens, encumbrance~ edveme claims or o~er matters: (a} orasted, suffered, aasumed or egreed to by the insured claimant; (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by ~ insured clalrnant prior to the date the insured claimant became an insured under this policy;, (=)-meullJng in no Io~ or damage to file in~umd claimant; (d} atfaching or created subasquent to Date of Policy; or (e) resulting in ioas or damage which would not have been sustained if the insured claimant had paid value for the estate or interest insured by this ~3olicy. 4. Any claim, which ansas out of the transaction vesting in the insured the estate or interest insured by this policy, by reason of the operation of federal bankruptcy, state insolvency, or aimiiar creditors' fights laws. CONDITIONS AND STIPULATIONS 1. DEF1NrrloN OF TERMS 4. DEFENSE AND PROSECUTION OF ACTIONS; DUTY OF INSURED CLAIMANT (a) "insured": the insured named in Schedule A. and, subject to any rights or defenses the Company would have had against the named insured, those who succeed to the interest of the named insured by operation of law as distinguished from purchase including, but not limited to, heirs, distdbutoes, devisees, survivors, personal reprasentalives, ..next of Idn, or corporate or ~uciary successors. (b) "insured claimant": an insured claiming loss or damage. (c) "knowledge" or "known": actual knowledge, not constnmfive knowledge or .... n~ice which may be imputed to an insured by reason of the public records as ds~lned-in ~ po#cy or any other records which impart sonetructive nolice of matters {d} 'land": the land described or re{erred to in Schedule [Al, and improvements affixed there~ which by law cons~tute real propafly. The term "land" does not include any property beyond the lines of the area described or referred to in Schedule IAI, nor any ~ titte, interest, estate or easement in abutang streets, roads, avenues, alleys, lanes, ways or waterways, but no~ing herein shall modify or limit ~ extent to which a right of access to and'from the land is insured hy this policy. {e| "~mo~o-~e_._": mo~gage, deed of ~ Irust deed, or olher security instrument. for the purpose of imparting constructive notice of matters relating to real property to purchasers for value and ~ knowledge. With respect to Section l(aXiv) of the Exclusions From Coverage, "public records" shall also include anvironmental protection liens filed in the records of ~ clen~ of the United States disthct.c(x~t (gl "unmarkatabitity of the title": an alleged or apparent matter affecting the title to the land, not excluded or excepted from coverage, which would enffife a purchaser of Ihe estate or interest described in Schedule A to be released from the obligation title. 2. CONTINUATION OF INSUI~I~ICE N='rER CONVEYANCE OF TITLE The coverage of ~ policy ~J cor~Jnue in ~ as of Date of Policy in favor or hok~ an indebfedne~ __~c_~_~'ed by a ixachase money mortgage givan by a purchaser from the insured, or ~ so ~ as the insured shall have liability by reason of covenants of warranly made by the insured in any transtar or conveyance of the ~ or ~ This policy shall not continue in force in favor of any purChesar frc~ the insured of ei~ar (il an estate or interest in the land, or (ii) an indel~Kthass ~ecumd by a purchase money mortgage given to the insured. 3. NOTICE OF Cl.A~ 10 BE QNEN BY IN~URED ~ The insured shall netily the Company promptly in writing {i) in case of any litigation es se{ forth in Section 4(a) below. (ii} in case knowledge shall come to an insured hereunder of any claim of title or interest which is adverse to the title to the estate ~"~-' or interest, as insored, and which might causo loss or damage for which the Company may be liabfe by v~tue of this policy, or* (iii) if litie to the estate or interest, as insured, is rejected as unmmkatabfe. If prompt notice shall not be gn/en to the Company, then as to the insured all liability of the Company shall terminate with ' - regard to the:matter or matters for which prompl notice is required; provided, however, thai failure to notify the Cempany shall in no case prejudice the fights of any insu.red un(~ this policy unless the Company shall be prejudiced by the failure and then TO COOl.RATE {a) Upon written request by the insured and subject to the options contained in Section 6 of these Conditions and Stipulations, the Company, at its own cost and without unreasonable delay, shall provide for the defense of an insured in litigation in which any third pan'y asserts a claim adverse to the title or interest as insured, but only as to those stated causes of action alleging a defect, lien or encumbrance or o~er matter insured against by this policy, The Company shall have the fight to select counsel of its choice (subject to the right ol the insured to object for reasonable cause) to represent the insured as to those stated causes of action and shall not be liable for and will not pay the fees of any other counsel. The Company will not pay any fees, costs or expenses incurred by the insured in the defense of those causes of action which allege matters not insured against (b) The Company shall have the fight, at its own cost, to institute and prosecute any action or proceeding or to do any other act which in its opinion may be necassa~ or desirable to establish the ~e to the estate or interest, as insured, or to prevent or reduce loss or damage to the insured. The Company may take any appropriate action under the terms of this policy, whether or not it shad be liable hereunder, and shall nol thereby concede liability or waive any provision of this policy. If ~ Company shall exercise its rights under this paragraph, it shall do so diligonfly. (c) Whenever ~e Company shall have brought an action or interposed a defense as required or permitted by the provisions of this policy, the Company may oorsue any litigation to*final determination by a court of competent jurisdiction and expressly reserves the right, in its sole discm{ion, to appeal from any adverse judgment or order. (d) In all cases where this policy permits or requires the Company to prosecute or provide for the defense of any action or proceeding, the insured shall secure to the Company the right to se prosecute or provide defense in the action or proceeding, and all appeals therein, and permit the Company to use, at its o~ion, the name of the insured for this purpose. Whenever requested by the Company, the insured, at the Company's expense, shall give the Company all reasonable aid (i} in any action or proceeding, securing evidence, obtaining witnesses, ;'prosec~ng or defending the action or proceeding, or affecting sat~emant, and (ii) in any o~her la'#[ul act which in ~ opinion of the Company may be necessa~ or desirable to establish the title to the estate or interest as insured. If the Company is prejudiced by the fallura of lhe insured to furnish the required cooperation, the Company's obligations to the insured under the policy shall .terminate, including any liability or obligation to defend, prosecute, or continue any litigation, wi~ regard to the malta- or mat~s requmng such cooparat~n. PROOF OF LOSS OR DM&N3E In addition fo and alter the notices required under Section 3 of these Conditione and Stipulations have been provided the Company, a proof of loss or damage signed and sworn to by the insured claimant shall be furnished to the Company within 90 days after the insured claimant shall ascertain the facts giwng rise to the loss or damage. The proof of loss or damage shall descdbe the defect in, or lien or encumbrance on the title, or other matter insured against by this policy which constitutes the basis of loss or damage and shall state, to the extent poasibfe, the basis of ~lating the amount of the loss or damage. If ~ Company is prejudiced by the failure of the insured claimant to provide the required proof of loss or damage, the Company's obligations to the insured under the policy shall terminate, including any liability or obligation to defend, prosecute, or continue any litigation, with rege~d to the matter or matters requiring such proof of loss or damage. Icou~n~ co~ SCHEDULE A .... 01:~5--0472-~t SCHEDULE A AGENCY/BRANCH ID NUMBER IREINSURANCE NUMBER ISIMULTANEOUS NUMBER DATE O~ POLICY AMOUNT OF INSURANCE Y~rch 26, 1993 at 11:44 a.m. $320,000.00 DJM ~TIC~AL ~EERPRISES, INC. ,'a Florida corporation 2. The estate or interest in the land described herein and which is covered by this policy is: fee simple 3. 7he~ab~:or'~'re;effed to herein is at Date of Policy vested in the insured. 4. The land referred to in this policy is described as follows: Sou~h 170.29 feet of No~t ~ of Noz~h~s~ qua.~e~ of Sou~est c~a.c'cer of Section 1, Township 46 South, Range 42 East (less West 60 Feet for right-of- ~y of State B~ad 809) MERiCAN TITLE ~(:~4) WHiTE-O~inal INSURANCE IM~led by: S~. & LIPMAN PINK - Home Ofrtce Copy CANARY - Agent's Copy BLUE - Plant Copy N--~ OP-5-0472-34 SC~EDUta S This policy do~ not insure against loss or damage by teas(al of the following exceptions: (1) Rights or claims of parties in possession not shown by thc public records. (2) Enc?achrmmts, ow'rlaps, boundary linc disputes, and any other matters which would be disclosed by an agL'urate survey and inspection of thc premises. (3) Easements or claims of easements not shown by th(' public records. (4) Taxes or special a~sessmcnts which arc not shown as existing liens by thc public records. (5) q'axcs and assessments fi~r thc year. (7) 1992 and sul)~qucnt years. Mortgage executed by DJMInternational Enterprises, Inc. in favor of Chloe P. Guarine and Nancy M. Smoot, as joint tenants with right of survivorship, in the original principal amount of $310,000.00 dated December 10, 1992, recorded on December 21, 1992, in Official Records Book 7523, Page 1833 of the Public Records of Palm Beach County, Florida. Reservations of the Lake Worth Drainage District contained in Deed Book 805, Page 11 and Deed Book 643, Page 55 as partially released in Deed Book 1005, Page 98 of the Public Records of Palm Beach County, Florida. NOTE: 'lhis I)(Ai('v (~,Lsists ,~f h,~.M i~tgcs lai,4'd ~.l',.duh.s % and B. This I)olic~. is of no f(a'('t- and u,~,-ss I~.h im~,.~ are i,wlmk'd ah.,g with m,v a, hk'd lat~'s i,.-oqx.~,t~.d h} WIIITE. - Original PINK - I Iome Off'ace Copy CANARY - Agent's Copy BI~UE - Plant Copy ~-... APT'lC FORM #101 CONDITIONS AND STIPULATIONS - CONTINUED In a(~dition, the insured ctaimant may reasonably be required to submit to examination under oath by any suth~izod represan~ive of the Company and shall produce rot examination, inspection and copying, at such reasonable times and places as may be designated by any authorized representalNe of ~ Company, all records, books, ledgers, checks, correspondence and memoranda, whether bearing a date before or alter Dali of Policy, which reasonably pertain to the loss or damage. Further, if requested by any authorized representative of the Company, ~ insured claimant shall grant its permission, in writing, for any authorized representative of the Company to examine, inspect and copy all records, books, ledgers, checks, correspondence and memoranda in the custoOy or con~'ol of a third party, which reaSOnably pertain to the loss or damage. All information designated as confidential by the insured claimant provided to the Company pursuant to this Secfio~ shall not be disclosed to others unless, in the reasonable judgment of the Company, it is necessary in the administration of the claim. Failure of the insured claimant to submit for examination under oath, produce other reasonably requested information or grant permission to secure reasonably necessary information from third pa~?s as required in this paragraph shall terminate any liability of the Company under this poticy as to that claim. 6. OPTIONS TO PAY OR OTHERWISE SE'n'LE CLAIMS; TERMINATION OF LIABIUTY In case of a claim under this policy, the Company shall have the follOWing additional (a) To Pay or Tender Payment of the Amount of Insurance. To pay or tender payment of the amount of insurance under this policy together with any costs, a~zxneys' fees and expenses incurred by the insured claimant, which were authorized by the Company, up to the time of payment or tender of payment and which Ihe Company is obligated to pay. Upon lhe exercise by the Company of this option, all liability and obligations to the insured under this palicy, ofher than to make the payment required, shall l.g m nate, including any liability or obligation to defend, prosecute, or continue any ation, and the policy shall be surrendered to the Company for cancellation (b) To Pay or Otherwise Settle With Parties Other than the insured or With the Insured Claimant (i) to pay or otherwise settle with other parties for or in the name of an insured claimant any claim insured against under this policy, together with any costs, attorneys' fees and expenses incurred by the insured claimant which were authorized by the Company up to the lime of payment and which the Company is obtigalid to pay; or (ii) to pay or otherwise seffie with the insured claimant the loss or damage provided for under this policy, together with any costs, attorneys' fees and expenses incurr~J by the insured claimant which were authorized by the Company up to the time of payment and which the Company is obligated to pay. Upon the exemise by the Company of either of the opl~ons provided for in paragraphs (b)(i) or (ii), the Company's obligations to the insured under this policy for the. ~laimed loss or damage, other than the' payments required to be made, shall terminate, including any liability or obligation to defend, prosecute or continue any litigal~en. 7. DETERMINATION, EXTENT OF LIABIMTY AND COINSURANCE This paticy is a contract of indemn~ against actual monetary loss or'damage sustained or incurred by the insured claimant who has suffered loss or damage by reason of matters insured against by this policy and only to the extent herein (a) The liability of the Company under this policy shall not exceed the least of:. (i) the Amount of Insurance stated in Schedule A; or, {ii) the dif~rence bet'ween the value of the insured estate or interest as insured and the value of the insured estate or interest subject to the defect, lien or {b) {This paragraph dealing ~ Co~surance was removed from Florida policies.) · (c) The Company will pay only those costs, attorneys' fees and expenses incurred ~n accordance with Sec~ 4 of~e Cor~itions and S~pulations. 8. APPORTIONMENT If the land described in Schedule IAI consists of two or more parcels which ara not used as a single site, and a loss is established affecting one or more of the parcels but not all, the loss shall be computed and seifled on a pro rata basis as ~f Ihe amount of insurance under this policy was divided pro rata as to the value on Dali of Policy of each separate parcel to the whole, exclusive of any i.m. prov. ements made subsequent to Date of Policy, unless a liability or value has qlhe., rwtse been agreed upon as to each parcel by the Company and the insura~l. at the lime of the issuance of this poticy and shown by an express statement or by an endomemant attached to this policy. (a) If the Company aslibiishes the title, or removes the alleged defect, lian or encumlxance, or cures the lack of a right of access to or from the land, or cures the claim of unmarketability of title, all as insured, in a reasu~abiy diligent manner by any method, including litigation and the completion of any appesis therefrom, it shall have fully parformed its obligatJons with respect to that matter and shall (b) In the event of any litigation, including litigation by ~ Company or with ~ Company's consent, the Company shall have no liability for loss or damage until them has been a final determination by a court of component jurisdictkm, and disposition of all appeals therefrom, adverse to the title as insured. (c) The Company shall not be liable for loss or damage to any insured for liability voluntarily assumed by the insured in setfiing any claim or suit wi~out the prior written consent of the Company, 10, REDUCTION OF INSURANCE; REDUCTION OR TERMINATION OF UABlUTY All payments under this policy, excep~ payments made for ~ attorneys' fees and expanses, shall reduce the amount of the insurance pro tanto. 11. LIABILITY NONCUMULATIVE it is expressly understood that the amount of insurance under this policy shall be reduced by any amount the Company may pay under any policy insuring a mortgage to which excepl~ is taken in Schedule B or to which the insured has agreed, assumed, or taken subject, or which is hereafter executed by an insured ~ which is a charge or lien on the estate or interest described or referred to in Schedule A, an~ the amount so paid shall be deemed a payment under this policy to the insured owner, 12. PAYMENT OF LOSS (a) No payment shall be made without producing this poticy for endomement of the payment unless the policy has been lost or destroyed, in which case proof of loss or destzuction shall be furnished to the setisfec'don of the Company. (b) Whan liability and the extent of loss or damage has been definitely fixed in accordance with these Conditions and Stipulations, the loss or damage shall be payabte within 30 days thereafter. 13. SUBROGATION UPON PAYMENT OR ~t i-EMENT {a} The Company's Right of Subroga~on. Whenever the Company shall have settled and paid a claim under this policy, all right of subrogation shall vest in the Company unaffected by any act of the insured claimant The Company shall be subrogalid to and be entitled to all rights and remedies which the insured claimant would have had against any person or property in respect to the claim had this policy not been issued. If requested by the Company, the insured claimant shall transfer to the Company all rights and remedies against any parson or propen'y necessary in order to perfect this dght of subrogation. The insured claimant shall permit the Company to sue, compromise or settle in the name of the insured claimant and to use the name of the insured claimant in any transaction or litigel~n involving these rights or remedies. If a payment on account of a claim does not fully cover the loss of the insured claimant, the Company shall be subrogated to these rights and remedies in the proportion which the Company's payment bears to the wh01e amount of the loss. If loss should rasuit fi'om any act of the insured claimant, as stated above, that act shall not void this policy but the Company, in that event, shall be required to pay only that part of any losses insured against by this policy which shall exceed the amount, if any, lost to the Company by mason of the Impairmant by ~ insured claimant of the Company's right of subrogation. (b) The Company's Rights Against Non-insured Obligors. The Company'~ right of subrogation against non-insurad obligors shall exist and shall n(: ~li, without mitation, the rights of the insured to indemnities, guaranties, other policies of insurance or bonds, no~withstanding any terms or -' cond~ons contained in those instruments which provide for subroga~on rights by reason of this policy. 14. ARBrTRATION Unless prohibited by applicable law, arbi~rat~n pursuant to the T~e Insurance Arbi~'aSon Rules of the American Arbiira#on Assucia~ may be demanded if agreed to by both Company and the insured. ArbSrable metter~ may include, but are not limited to, any coniroversy or claim behveen Company and the insured arising out of or relating to this policy, and service of Company in connect~ with its issuance or the breach of a policy provision or other obliga~n. Arbiea~n pursuant to this policy and under ~ Rules in effect on ~ date the demand for arbitration is made or, at the oplfon of the insured, the Rules /h effect at Da~ CONDITIONS AND STIPULATIONS - CONTINUED award atlorneys' fees to a prevailing par~y. Judgment ~ the award rendered by the Arbibatods) may be entered in any court having jurisdicfion ~hereo~. The law of the situs of the land shall apply to an arbitra~n under the Title Insurance Arbitration Rules. A Copy of the Rules may be obtained from the Company upon request. 15. LIABILITY UMITED TO THIS POLICY; POLICY ENTIRE CONTRACT Company is the entire policy and contract between the insured and the Company. In interpreting any provision of this policy, this policy shall be constnmd as a (bi Any claim of loss or damage,, whelher or not based on negligence, and which arises out of the status of the title to the estate or interest covered hereby or by any action asserting such claim, shall be restricted to this policy. .: {c) No amendment of or endomement to this policy can be made excepl by a writing endorsed hereon or attached hereto signed by either the President. a Vice President, Ihe Secrelary, an Assistant Secratmy, or validating officer or autho~zed signato~ of the Company. 16. SEVERABILITY In the event any provision of the policy is held invalid or uneoforceat~e under applicable law, the policy shall be deemed r~ to include that provision and all other provisions shall remain in full force and effect. 17. NOTICES, WHERE SENT All notices required to be given the Company and any statement in writing required to be furnished lhe Company shall include the number of this policy and shall be addressed to the Company at 493 East Semoran Boulevard. Casselberry, Flodda 32707. Telephone: (407) 260-8050. 626-8383 CSIMILE 624-1344 PHILIP E. BALAS ATTORNEY AT LAW February 12, 1997 ADMIRALTY TOWER. SUITE 800 4400 PGA BOULEVARD PALM BEACH GARDENS, FLORIDA 33410 BY HAND DELIVERY Gary D. Fields, Esq. 4400 PGA Boulevard, Suite 700 Palm Beach Gardens, Florida 33410 RE: Title search update Your reference: DJM International Enterprises, Inc. Our File No.: P97014 Dear Mr. Fields: You provided us with a copy of an owner's title insurance policy naming DJM International Enterprises, Inc. as the insured, said title policy was written on American Pioneer Title Insurance Company with an effective date of March 26, 1993 at 11:44 a.m. Said owner's title insurance policy insured the interest of DJM International, Inc. in the following property (the Property): South, 170.29 feet of Northwest quarter of Northwest quarter of Southwest quarter of Section 1, Township 46 South, Range 42 East (less West 60 Feet for right-of-way of State Road 809) You requested we confirm that, as of March 26, 1993 at 11:44 a.m., and from that date forwar&, DJM International Enterprises, Inc. is the current record title holder of the Property and also you asked that we advise you of any other parties that claim an interest in the Property. Our title search update is for the period March 26, 1993 at 11:44 a.m. through January 29, 1997 at 11:00 P.M. Within that period of time, the following documents affecting the Property have been recorded and ~opies of same are attached hereto: Date Instrument Recorded Type of Instrument Official Record Book/Page 3/26/93 Corrective Warrant~ 7638/902 Deed Guarine and Guarine, grantor, to DJM INTERNATIONAL ENTERPRISES, INC., a Florida corporation, grantee. 6~1:!./93 Correct£ve Mortgage 7749/1167 Deed DJM INTERNATIONAL ENTERPRISES, INC., mortgagor; Guarine and Smoot!, mortgagees. 2/27/96 ~.asement 9137/1292 Astro Auto Salvage, as owner of the Property, grants 12' easement along West Property line to the City of Boynton Beach (this appears to be a defective conveyance as Astro Auto Salvage is not in title and has no right to convey the Property or any portions 12/30/96 Easement 9592/40 Military 6, L.C., grants an easement to the City of Boynton Beach for water and sewer utilities. The easement granted appears to encroach somewhat onto the Northwest portion of the Property but without a survey, we are unable to make a definite determination. The above entries affecting the Property have been recorded among the Official Records of Palm Beach County, Florida, during the time period covered by this search. The information furnished to you herein does not alleviate the necessity of an examination of the complete instruments or court proceedings indexed. No name search has been performed. The information provided herein does not include a search of federal liens filed in the Office of the Secretary of Sate pursuant to Sec. 713.901, et seq.., F.S,, which became effective January 1, 1993, and which designated that Office as the place for filing federal liens against tangible and intangible personal property of partnerships, corporations, trusts and decedents' estates. For insuring purpose~ personal property includes, but is not limited to, mortgages, leaseholds, mortgages on leaseholds, interests in cooperative associations, vendees' interests, and options. Ad Valorem tax information is not pFovided. PEB/k attachments