Liquidated damages if title defective.

Lessor acquired title to the premises under and by virtue of the last will and testament of _________, deceased, late of _________ county, _________, as such will was admitted to probate in the county judge's court of _________ county, _________, on _________[year], and recorded in the office of the county judge of _________ county, _________, in book of Local Wills F, on page _________, and lessee has full knowledge of the provisions of such will, and particularly has lessee knowledge of that clause of such will which reads and is as follows: _________.

It has been questioned by persons other than the parties to this lease whether lessor has merely a life estate in leased premises or is the owner in fee simple of the title of premises:

Therefore, lessor agrees at lessor's expense and within a reasonable time from the date hereof, to institute in a court of competent jurisdiction in this state, with the necessary parties defendant thereto, for the purpose of determining the true construction of such will wherein above-described real estate is devised to lessor, and for the determination of the question of whether lessor holds a life estate or a fee simple estate in and to the premises. And lessor agrees, with all reasonable dispatch, to prosecute the action to a final judgment and in the event a final judgment should be entered by the court in which the action is instituted in substance and to the effect that lessor holds merely a life estate in the premises or any estate less than the whole and entire fee simple title, that lessor shall promptly take or cause to be taken an appeal in the cause to _________ court of _________ and to prosecute the appeal with all reasonable diligence and dispatch to a final conclusion. And lessor agrees that _________ life insurance policies on the life of lessor, _________[name], in _________, for $_____ each, or in some other life insurance company to be approved by lessee, shall be in the manner and form prescribed by law assigned to _________ of _________, as trustee, on the trust and under agreement by and between the parties hereto that in the event lessee should be dispossessed of premises at any time within _________ years from the date of this lease for any reason or upon any ground other than as the result of default of lessee to perform the agreements herein contained on his part to be done and performed, that the entire _________ proceeds derived from the life policies, namely, $_____, shall become the property of lessee and shall be paid by such trustee to lessee, provided the same shall have come into the possession of trustee or the right to collect the policies or any part thereof shall have accrued to trustee or lessee, and should such dispossession of lessee occur subsequent to _________ years from this date and prior to _________ years from this date for the reasons or upon the grounds stated, $_____ of the proceeds derived from the policies shall become the property of lessee and shall be paid by the trustee to lessee, provided the same shall have come into the possession of trustee or the right to collect the policies or any part thereof shall have accrued to trustee or lessee, and should disposition of lessee occur subsequent to _________ years from this date and prior to _________ years from this date, $_____ of the proceeds derived from policies shall become the property of lessee and be paid by the trustee to lessee, provided the same shall have come into the possession of trustee or the right to collect the policies or any part thereof shall have accrued to trustee or lessee; and should such disposition of lessee occur subsequent to _________ years from this date and prior to _________ years from this date, $_____ derived from the proceeds of policies shall become the property of lessee and be paid by the trustee to lessee, provided the same shall have come into the possession of trustee or the right to collect the policies or any part thereof shall have accrued to trustee or lessee; and should such dispossession of lessee occur subsequent to _________ years from this date and at any time prior to _________ years from this date, that $_____ derived from the proceeds of policies shall become the property of lessee and be paid by trustee to lessee, provided the same shall have come into the possession of trustee or the right to collect the policies or any part thereof shall have accrued to trustee or lessee, it being agreed by and between the parties hereto that lessee, contemporaneously with execution of this lease, is purchasing the stock of goods, wares and merchandise of _________, and the business of _________, and the goodwill of such business now conducted on a part of leased premises by _________ for a large amount of money, and that lessee intends to continue such business on a part of leased premises and that damages which would be sustained by lessee in event of his dispossession from premises at the periods of time herein designated in this paragraph for the payment of insurance moneys from the proceeds derived from the life insurance policies of lessor, _________, at any time prior to _________ years from this date are uncertain in amount and difficult of ascertainment, and the payments herein provided of such proceeds of moneys derived from such life insurance policies in the manner and times herein set forth are agreed upon as liquidated damages which will be sustained by lessee should the death of _________ occur prior to _________[year], and should lessee be dispossessed of and from premises for that it be adjudged by a court of competent jurisdiction that _________ only held a life estate in premises, and lessee, lessee's heirs or assigns be thereby dispossessed of premises; and the agreement that in such event lessee shall receive the proceeds of policies in the amounts herein provided constitutes a part of the consideration for the execution of this instrument by lessee. And lessor will promptly pay premiums on policies as the same became due and payable, and should lessor not do so within _________ days after the same become payable, lessee may make payment of premiums and deduct the amount of such premiums from the monthly rentals herein reserved. Provided, however, that after the expiration of _________ years, from this date lessor may cancel one of policies for $_____ dollars on lessor's life; and at the expiration of _________ years from this date, may cancel another one of the policies; and at the expiration of _________ years from this date, may cancel another one of the policies; and may, at the expiration of _________ years from this date cancel another one of the policies, and may, at the expiration of _________ years from this date cancel the two remaining policies. And provided, further, that upon a final determination by the _________ court of the estate of _________, in the action herein agreed to be instituted by lessor, the above quoted clause of will of _________, deceased, should be construed to give _________ a fee simple estate absolute in and to all of leased premises, or in the event the _________ court in which the action is to be brought should construe the above quoted language of the will of _________, deceased, so as to give _________ a fee simple absolute in and to all of premises and that no appeal from such decree should be made to the _________ court of the state of _________ within the time allowed by law and rules of practice within which such appeals may be taken, then and in either event trustee to whom such policies are assigned shall forthwith execute a release of its interest in and to all of such policies and all rights, title and interest thereto of lessee shall immediately cease and determine.



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