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Dated: July 16th, 2025
1. Buyer.
1.1 City of Fontana, a municipal corporation ,("Buyer")hereby offersto purchasethereal property, hereinaŌer described,from theowner thereof("Seller") (collecƟvely,the"ParƟes" orindividually, a"Party"),through anescrow ("Escrow")toclose 30 or Five (5) daysorsooner aŌer thewaiver or saƟsfacƟonof theBuyer's ConƟngencies, ("Expected ClosingDate") tobe heldby First American Title & Escrow - Sheri Keene ("EscrowHolder") whoseaddress is 4380 La Jolla Village Drive Suite 200 - San Diego, CA 92122 ,PhoneNo. 858-410-1305 ,Facsimile No. 866-898-0113 email: [email protected] upon theterms and condiƟons setforthin thisagreement ("Agreement"). Buyershallhave theright toassignBuyer's rightshereunder,butanysuch assignmentshall not relieveBuyer ofBuyer's obligaƟonshereinunless Sellerexpressly releasesBuyer.
1.2 The term"Date ofAgreement" asusedherein shallbe thedatewhen by execuƟon anddelivery(as definedin paragraph20.2) ofthisdocument ora subsequent counteroffer thereto,Buyer andSellerhave reachedagreement in wriƟng wherebySelleragrees tosell, andBuyeragrees topurchase, thePropertyupon termsaccepted byboth ParƟes.
2. Property.
2.1 The realproperty ("Property")that isthesubject ofthis offerconsistsof (inserta briefphysical descripƟon) a multi-tenant comemrcial property totalling approx. +/-34,000 sq. ft. on two parcels of land totalling approx. +/-67,691 sq. ft. islocated inthe Countyof San Bernardino , iscommonly knownas(street address,city,state,zip) 16641 & 16643 Orange Way - Fontana, CA 92335 andis legallydescribed as: to be determined in escrow by First American Title (APN: 0191-251-21-0000 & 0191-251-06-0000 ).
2.2 If thelegal descripƟonof thePropertyis notcomplete orisinaccurate, thisAgreement shallnotbe invalidand thelegal descripƟonshallbe completedor correctedto meetthe requirementsof First American Title - Ceecee Curtis & Ruben Castro ("TitleCompany"), which shallissue the Ɵtle policy hereinaŌerdescribed.
2.3 The Propertyincludes, atno addiƟonalcostto Buyer,the permanentimprovementsthereon, includingthose itemswhichpursuant toapplicable laware a partof theproperty,aswellas thefollowing items,if any,ownedby Sellerand atpresentlocated onthe Property:electrical distribuƟon systems(power panel,bus ducƟng,conduits, disconnects, lighƟng fixtures);telephone distribuƟon systems(lines, jacksand connecƟonsonly);space heaters; heaƟng, venƟlaƟng,air condiƟoningequipment ("HVAC");air lines; firesprinkler systems;security and fire detecƟonsystems;carpets; windowcoverings; wallcoverings;and N/A (collecƟvely,the "Improvements").
2.4 The firesprinkler monitor: is ownedbySeller andincluded inthePurchase Price, is leasedby Seller,andBuyer willneed to negoƟatea newlease withthe firemonitoring company, ownershipwill bedetermined duringEscrow,or thereis no fire sprinklermonitor.
2.5 Except asprovided inParagraph2.3,thePurchase Pricedoes notincludeSeller's personalproperty,furnitureandfurnishings, and NONE allof whichshall beremoved bySellerprior toClosing.
3. PurchasePrice.
3.1 The purchaseprice ("PurchasePrice") tobepaid byBuyer toSellerfor theProperty shallbe $7,500,000 ,payableas follows:
$7,500,000
TotalPurchase Price: $7,500,000
3.2 If Buyeris taking Ɵtle totheProperty subjectto,orassuming,an ExisƟngDeed ofTrustand suchdeed oftrust permitsthe beneficiary todemand payment offeesincluding,but notlimitedto,points,processing fees,and appraisalfeesas a condiƟon tothetransfer ofthe Property,Buyeragrees topay suchfees uptoa maximumof 1.5%of theunpaidprincipal balanceof theapplicable ExisƟngNote.
4. Deposits.
4.1 Buyerhasdelivered toBroker acheckin thesum of ,payable toEscrow Holder,to bedeliveredby Brokerto EscrowHolderwithin 2or businessdays aŌerboth ParƟeshaveexecuted thisAgreement andtheexecuted Agreementhas beendelivered toEscrowHolder,or within 2or
STANDARDOFFER,AGREEMENT ANDESCROWINSTRUCTIONS
FORPURCHASEOF REALESTATE
(Non-ResidenƟal)
(Strikeany notapplicable)
(a) Cash downpayment, includingtheDeposit as defined inparagraph 4.3(orif anall cashtransacƟon,the PurchasePrice):
(b) Amountof "NewLoan"as definedin paragraph5.1, ifany:
(c) Buyershall take Ɵtle totheProperty subjectto and/orassumethe following exisƟng deed(s)of trust("ExisƟngDeed(s) of Trust")securing the exisƟng promissorynote(s)("ExisƟng Note(s)"):
(i) An ExisƟng Note("First Note")withan unpaidprincipal balanceas oftheClosing ofapproximately:
SaidFirst Noteis payableat permonth, includinginterest attherate of %perannum unƟlpaid (and/orthe enƟreunpaidbalance isdue on ).
(ii) An ExisƟngNote ("SecondNote") withanunpaid principalbalance asofthe Closingof approximately:
SaidSecond Noteis payableat permonth, includinginterest attherateof %perannum unƟlpaid (and/orthe enƟreunpaidbalance isdue on ).
(d) Buyershall giveSellera deedof trust("Purchase MoneyDeedof Trust")on theproperty,to securethe promissorynote ofBuyer toSeller describedinparagraph 6("Purchase MoneyNote") intheamount of:
***** businessdays aŌerboth ParƟeshaveexecuted thisAgreement andtheexecuted Agreementhas beendelivered toEscrowHolder Buyershall deliverto EscrowHolder acheck inthesum of $100,000 . If saidcheckis notreceived byEscrowHolder withinsaid Ɵmeperiodthen Sellermay electto unilaterally terminatethis transacƟonby giving wriƩen noƟce ofsuch elecƟonto EscrowHolderwhereupon neitherParty shallhaveany furtherliability totheother underthis Agreement. ShouldBuyer andSellernot enterinto anagreement forpurchaseand sale,Buyer's checkorfunds shall,upon requestbyBuyer,bepromptly returnedto Buyer.
4.2 AddiƟonal deposits:
(a) Within 5business days aŌerthe Dateof Agreement,Buyershall depositwith EscrowHolderthe addiƟonalsum of tobe appliedtothe PurchasePrice atthe Closing.
(b) Within5 businessdays aŌer the conƟngencies discussed in paragraph9.1(a) through(m) areapprovedor waived,Buyer shalldepositwith Escrow Holderthe addiƟonalsum of tobe appliedtothe PurchasePrice attheClosing. (c) Ifan AddiƟonalDeposit isnotreceived byEscrow Holderwithinthe Ɵmeperiod provided thenSellermay noƟfyBuyer,EscrowHolder,and Brokers,in wriƟngthat, unlessthe AddiƟonalDepositis receivedby EscrowHolder within2business daysfollowing said noƟce,the Escrowshall bedeemedterminated without Docusign Envelope ID: 0A22AEC4-BD64-4AC5-99A3-A58A8D2D81A4
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further noƟce or instrucƟons.
4.3 Escrow Holdershall depositthe fundsdepositedwith itby Buyerpursuantto paragraphs4.1 and4.2 (collecƟvely the"Deposit"), ina StateorFederally charteredbank inan interestbearingaccount whoseterm isappropriate andconsistentwith the Ɵming requirementsofthis transacƟon. Theinteresttherefrom shall accrueto the benefit ofBuyer,who herebyacknowledges thatthere maybe penalƟes orinterest forfeituresifthe applicableinstrument isredeemedprior toits specifiedmaturity. Buyer's FederalTax IdenƟficaƟon Numberis to be provided directly to escrow if desired . NOTE:Such interestbearing accountcannot beopened unƟl Buyer'sFederal Tax IdenƟficaƟon Numberisprovided.
4.4 Notwithstanding theforegoing, within5 days aŌerEscrow Holderreceives themoniesdescribed inparagraph 4.1above,Escrow Holdershall release$100 ofsaid moniesto Sellerasand forindependent consideraƟonfor Seller's' execuƟonof thisAgreement andthe granƟng ofthe conƟngencyperiodto Buyeras herein provided. Suchindependent consideraƟonisnon-refundable toBuyer butshall becreditedto thePurchase Priceinthe eventthat thepurchaseof theProperty is completed.
4.5 Upon waiverof allof Buyer's conƟngenciesthe Depositshall becomenon-refundablebut applicableto thePurchasePrice exceptin theevent ofaSeller breach,or inthe eventthatthe Escrowis terminatedpursuant totheprovisions ofParagraph 9.1(n) (DestrucƟon,Damage orLoss) or9.1(o)(Material Change).
5. Financing ConƟngency. (Strikeif notapplicable)
5.1 This offeris conƟngentuponBuyer obtainingfrom aninsurance company, financial insƟtuƟon orother lender,acommitment tolend toBuyera sumequal toat least % ofthe PurchasePrice, ontermsacceptable toBuyer. Suchloan ("NewLoan") shallbesecured bya firstdeed oftrustor mortgageon the Property. Ifthis Agreementprovidesfor Sellerto carryback junior financing, then Sellershall havetheright toapprove thetermsof theNew Loan. Sellershallhave 7 daysfollowing receiptof thecommitment seƫng forththe proposedterms oftheNew Loanto approveordisapprove ofsuch proposedterms. IfSeller failsto noƟfy EscrowHolder,in wriƟng, ofthedisapproval withinsaid 7days itshallbe conclusivelypresumed thatSellerhas approvedthe termsofthe NewLoan.
5.2 If Buyershall failto noƟfy itsBroker,EscrowHolder andSeller,in wriƟngwithin days followingtheDate ofAgreement, thattheNew Loan hasnot beenobtained, itshallbe conclusivelypresumed thatBuyer haseitherobtained saidNew Loanorhas waivedthis NewLoan conƟngency.
5.3 If Buyershall noƟfyitsBroker,EscrowHolder andSeller,in wriƟng,within the Ɵme specifiedinparagraph 5.2hereof, thatBuyerhas notobtained saidNew Loan,this Agreementshall beterminated,and Buyershall be enƟtled totheprompt returnof theDeposit,plus anyinterest earnedthereon,less onlyEscrow Holder andTitle Company cancellaƟon feesandcosts, whichBuyer shallpay.
6. SellerFinancing. (PurchaseMoney Note). (Strikeifnot applicable)
6.1 If Sellerapproves Buyer's financials(see paragraph6.5) thePurchase MoneyNoteshall providefor interestonunpaid principalat therateof %per annum,with principalandinterest paidas follows: . The PurchaseMoneyNote andPurchase MoneyDeedof Trustshall beon thecurrentforms commonlyused byEscrow Holder,andbe juniorand subordinateonly tothe ExisƟng Note(s)and/or theNewLoan expresslycalled forbythis Agreement.
6.2 The PurchaseMoney Noteand/orthe PurchaseMoney Deedof Trustshallcontain provisionsregarding thefollowing(see alsoparagraph 10.3(b)):
(a) Prepayment. Principal maybeprepaid inwhole orinpart atany Ɵmewithoutpenalty,atthe opƟonof theBuyer. (b) LateCharge. Alate chargeof 6%shall bepayablewith respectto anypaymentof principal,interest, orothercharges, notmade within10 days aŌer itis due.
(c) DueOn Sale. Intheevent theBuyer sellsortransfers Ɵtleto theProperty orany porƟon thereof,then theSellermay,atSeller's opƟon,requirethe enƟreunpaid balanceof saidNoteto bepaid infull.
6.3 If thePurchase MoneyDeedof Trustis tobe subordinatetoother financing,Escrow Holdershall,at Buyer'sexpense prepareandrecord onSeller's behalfa requestfor noƟceof defaultand/orsale withregard toeach mortgageordeed oftrust towhichit willbe subordinate.
6.4 WARNING: CALIFORNIALAWDOESNOTALLOW DEFICIENCYJUDGEMENTS ONSELLER FINANCING. IF BUYERULTIMATELYDEFAULTSONTHE LOAN, SELLER'SSOLE REMEDYIS TOFORECLOSEON THEPROPERTY.
6.5 Seller's obligaƟonto provide financingis conƟngentupon Seller'sreasonable approvalofBuyer's financial condiƟon. Buyerto providea current financial statementand copiesof itsFederaltax returnsfor thelast 3yearsto Sellerwithin 10daysfollowing theDate ofAgreement. Sellerhas 10days followingreceiptof such documentaƟon to saƟsfy itselfwithregard toBuyer's financial condiƟon andto noƟfy EscrowHolder astowhether ornot Buyer's financial condiƟon is acceptable. IfSeller failsto noƟfy EscrowHolder,in wriƟng, ofthedisapproval ofthis conƟngencywithinsaid Ɵmeperiod, itshallbe conclusivelypresumed thatSeller hasapproved Buyer's financial condiƟon. If Selleris not saƟsfied withBuyer's financial condiƟonor ifBuyerfails todeliver therequired documentaƟon thenSeller may noƟfy EscrowHolder in wriƟngthat SellerFinancing willnot beavailable,and Buyershall havethe opƟon, within10 daysofthe receiptof such noƟce, toeither terminatethis transacƟonor topurchasethe Propertywithout Seller financing. IfBuyer failsto noƟfyEscrowHolder withinsaid Ɵmeperiodof its elecƟon to terminatethis transacƟonthen Buyershallbe conclusivelypresumed tohave electedtopurchase theProperty withoutSeller financing. If Buyerelectsto terminate, Buyer'sDeposit shallbe refundedlessTitle Companyand EscrowHolder cancellaƟonfeesand costs,all ofwhichshall beBuyer's obligaƟon.
7. RealEstate Brokers.
7.1 Each Partyacknowledges receivinga DisclosureRegardingReal EstateAgency RelaƟonship, confirmsand consentsto thefollowingagency relaƟonshipsin this transacƟon withthe followingrealestate broker(s)("Brokers") and/ortheir agents(“Agent(s)”):
Seller'sBrokerageFirm Allied Commercial Real Estate, Inc. LicenseNo. 01519318 is thebroker of(checkone):
theSeller; or both theBuyerand Seller(dual agent).
Seller'sAgent Tony M. Guglielmo & Steven D. Roppel LicenseNo. 01301532/01151111 is(check one): the Seller'sAgent (salespersonor brokerassociate);or boththe Seller'sAgent andtheBuyer's Agent(dual agent).
Buyer'sBrokerageFirm Allied Commercial Real Estate Inc. License No. 01519318 isthe brokerof(check one):
theBuyer; or boththe BuyerandSeller (dualagent).
Buyer'sAgent Tony M. Guglielmo & Steven D. Roppel LicenseNo. 01301532 & 01151111 is (checkone):
theBuyer's Agent(salesperson orbrokerassociate); or boththe Buyer'sAgent andtheSeller's Agent(dual agent).
The ParƟes acknowledgethat otherthanthe Brokersand Agentslisted above,thereare noother brokersoragents represenƟngthe ParƟesordue anyfees and/or commissionsunder thisAgreement. Buyershall usethe servicesof Buyer'sBrokerexclusively inconnecƟon withanyand all negoƟaƟons and offerswith respectto theProperty fora periodof1 yearfrom thedate insertedforreference purposesat thetopof page1.
7.2 Buyer andSeller eachrepresent andwarrantto theother thathe/she/ithas hadno dealingswithany person, firm, broker,agent or finderin connecƟon withthe negoƟaƟonof thisAgreementand/or the consummaƟon ofthe purchaseandsale contemplatedherein, otherthanthe Brokersand Agentsnamedin paragraph7.1, andno broker,agentor otherperson, firmor enƟty,otherthan saidBrokersandAgentsis/are enƟtledto anycommissionor finder'sfee in connecƟon withthis transacƟonas theresultof anydealings oracts ofsuchParty. Buyer andSellerdo eachhereby agreetoindemnify, defend,protect andhold theother harmlessfrom andagainst anycosts,expenses orliability for compensaƟon, commissionorcharges whichmay beclaimedby anybroker,agent, finderor othersimilar party,other thansaid namedBrokersand Agentsby reasonof anydealingsor actof theindemnifyingParty.
8. Escrowand Closing.
8.1 Upon acceptancehereof bySeller,thisAgreement,including any counteroffers incorporatedhereinby the ParƟes, shall consƟtutenot onlythe agreement ofpurchase andsale betweenBuyerand Seller,but also instrucƟons toEscrowHolder forthe consummaƟonofthe Agreementthrough theEscrow. EscrowHolder shallnot prepareany furtherescrow instrucƟons restaƟngor amendingthe Agreementunless specifically soinstructed bythe ParƟes ora Brokerherein. Subjectto thereasonable approvalof the ParƟes,Escrow Holdermay,however,include itsstandardgeneral escrowprovisions. Inthe eventthat thereisany conflictbetween theprovisions ofthe Agreementandthe provisionsof any addiƟonal escrow instrucƟonsthe provisionsof theAgreementshall prevailas tothe ParƟes andthe Escrow Holder.
8.2 As soonas pracƟcal aŌer thereceiptof thisAgreement andanyrelevant counteroffers,Escrow Holdershallascertain theDate ofAgreement as definedin paragraphs1.2 and20.2 andadvisethe ParƟesand Brokers,in wriƟng,ofthe dateascertained.
8.3 Escrow Holderis herebyauthorized andinstructedto conductthe Escrowinaccordance withthis Agreement,applicablelaw andcustom and pracƟce of thecommunity inwhich EscrowHolderis located,including any reporƟng requirementsofthe InternalRevenue Code. In theevent ofa conflict betweenthe lawof thestate wherethe Propertyislocated andthe lawof thestatewhere theEscrow Holderislocated, thelaw ofthestate wherethe Propertyis locatedshallprevail.
8.4 Subject to saƟsfacƟon ofthe conƟngencieshereindescribed, EscrowHolder shallclosethis escrow(the "Closing")byrecording ageneral warrantydeed (a grantdeed inCalifornia) andtheother documentsrequired tobe recorded,andby disbursingthe fundsanddocuments inaccordance withthisAgreement.
8.5 Buyer andSeller shalleach payone-halfof theEscrow Holder'schargesand Sellershall paytheusual recordingfees andany requireddocumentarytransfer taxes. Sellershall paythepremium fora standardcoverage owner'sorjoint protecƟonpolicy of Ɵtleinsurance. (See alsoparagraph11.) Docusign Envelope ID: 0A22AEC4-BD64-4AC5-99A3-A58A8D2D81A4
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8.6 Escrow Holdershall verifythat allofBuyer's conƟngencieshave been saƟsfiedor waivedprior toClosing. The maƩers containedin paragraphs9.1 subparagraphs(b), (c),(d), (e),(g),(i), (n),and (o),9.4, 12,13,14, 16,18, 20,21,22, and24 are,however,maƩers ofagreement betweenthe ParƟesonlyand arenot instrucƟonsto EscrowHolder.
8.7 If this transacƟon isterminated fornon-saƟsfacƟonand non-waiverof aBuyer's ConƟngency, as defined inparagraph9.2 ordisapproval ofany other maƩersubject toBuyer's approval,thenneither ofthe ParƟesshall thereaŌerhaveany liabilityto theotherunder thisAgreement, excepttothe extentof abreach of any affirmaƟve covenantor warrantyinthis Agreement. Inthe eventofsuch terminaƟon,Buyer shall,subjectto theprovisions ofparagraph8.10, bepromptly refundedall fundsdeposited byBuyerwith EscrowHolder,lessonly the$100provided forin paragraph4.4and theTitle CompanyandEscrow Holder cancellaƟon feesand costs,all ofwhichshall beBuyer's obligaƟon. Ifthis transacƟon isterminated asaresult ofSeller's breachofthis Agreementthen Sellershall paytheTitle Companyand EscrowHolder cancellaƟonfeesand costs.
8.8 The Closingshall occuron theExpectedClosing Date,or assoon thereaŌer asthe Escrowisin condiƟonfor Closing;provided, however,thatif theClosing doesnot occurby theExpectedClosing Dateand saidDate isnotextended bymutual instrucƟonsofthe ParƟes,a Partynotthen indefault underthis Agreementmay noƟfythe otherParty,EscrowHolder,and Brokers,in wriƟngthat, unlesstheClosing occurswithin 5businessdays followingsaid noƟce,theEscrow shallbe deemed terminatedwithout further noƟce or instrucƟons.
8.9 Except asotherwise providedherein, the terminaƟonof Escrowshall notrelieveor releaseeither Partyfromany obligaƟonto payEscrow Holder'sfeesand costsor consƟtutea waiver,releaseor dischargeof anybreach ordefaultthat hasoccurred intheperformance ofthe obligaƟons,agreements,covenants or warranƟescontained therein.
8.10 If thisEscrowis terminatedfor anyreasonother thanSeller's breachordefault, thenas acondiƟonto thereturn ofBuyer's deposit,Buyershall within5 days aŌer wriƩenrequest delivertoSeller,atno charge,copies ofallsurveys, engineeringstudies, soilreports,maps, masterplans, feasibilitystudiesand othersimilar itemsprepared byor forBuyerthat pertainto theProperty.
9. ConƟngenciesto Closing.
9.1 The Closingof this transacƟon is conƟngentupon the saƟsfacƟon orwaiverof thefollowing conƟngencies. IF BUYERFAILS TONOTIFY ESCROWHOLDER,
INWRITING, OFTHE DISAPPROVALOFANY OFSAID CONTINGENCIESWITHIN THETIMESPECIFIED THEREIN,IT SHALLBECONCLUSIVELYPRESUMEDTHATBUYER HASAPPROVED SUCHITEM, MATTERORDOCUMENT. Buyer's condiƟonalapproval shall consƟtutedisapproval, unlessprovision ismadeby theSeller withinthe Ɵme specified thereforeby theBuyerin such condiƟonal approvalor bythisAgreement, whicheveris later,forthe saƟsfacƟonof the condiƟonimposed bythe Buyer.
EscrowHolder shallpromptly provideall ParƟes withcopies ofany wriƩendisapprovalor condiƟonalapproval whichitreceives. With regardtosubparagraphs (a) through(m) thepre-printed Ɵmeperiodsshall controlunless a differentnumberofdays isinserted inthespaces provided. (a) Disclosure. Seller shallmaketo Buyer,through Escrow,all oftheapplicable disclosuresrequired bylaw(See AIRCRE ("AIR")standardform enƟtled "Seller'sMandatory DisclosureStatement") andprovideBuyer witha completedProperty InformaƟonSheet("Property InformaƟonSheet") concerningtheProperty, dulyexecuted byor onbehalfof Sellerin thecurrent formorequivalent tothat publishedbythe AIRwithin 10or ****** daysfollowing theDate of Agreement. BuyerhasNinety(90) 10daysfrom thedateofagreement receipt ofsaiddisclosures toapprove ordisapprove the maƩersdisclosed. (b) Physical InspecƟon. Buyer has10or Ninety (90) days followingthe receiptof theProperty InformaƟon Sheetor theDate ofAgreement, whicheveris later,to saƟsfyitself withregardto thephysical aspectsandsize ofthe Property. (c) HazardousSubstance CondiƟonsReport. Buyerhas 30or Ninety (90) days followingthe receiptof theProperty InformaƟon Sheetor the DateofAgreement, whicheveris later,to saƟsfyitselfwith regardto theenvironmentalaspects ofthe Property. Sellerrecommendsthat Buyerobtain a HazardousSubstance CondiƟonsReport concerningtheProperty andrelevant adjoining properƟes. Anysuch reportshall bepaidfor byBuyer. A"Hazardous Substance"for purposesof thisAgreementis definedas anysubstance whosenatureand/or quanƟtyof existence,use,manufacture, disposalor effect,renderit subjectto Federal,state orlocal regulaƟon, invesƟgaƟon, remediaƟon orremoval as potenƟallyinjurious topublic healthorwelfare. A "HazardousSubstance CondiƟon"for purposesof thisAgreementis definedas theexistence on,underor relevantlyadjacent totheProperty ofa HazardousSubstancethat wouldrequire remediaƟonand/or removalunder applicableFederal,state orlocal law. (d) Soil InspecƟon. Buyer has30or Ninety (90) days followingthe receiptof thePropertyInformaƟon Sheetor theDate ofAgreement, whicheveris later,to saƟsfyitself withregardto the condiƟon ofthesoils onthe Property. Sellerrecommendsthat Buyerobtain asoiltest report. Anysuchreport shallbe paidfor byBuyer. Sellershall provideBuyer copiesofany soilsreport thatSellermay havewithin 10daysfollowing theDate ofAgreement. (e) Governmental Approvals. Buyer has30 or Ninety (90) daysfollowing theDateof Agreementto saƟsfyitselfwith regardto approvals andpermits fromgovernmental agenciesordepartments whichhave ormay have jurisdicƟonover theProperty andwhichBuyer deemsnecessary ordesirablein connecƟonwith itsintended useofthe Property,including, butnot limitedto,permits andapprovals requiredwithrespect tozoning, planning,buildingand safety, fire,police, handicapped and Americanswith DisabiliƟes Actrequirements, transportaƟonand environmental maƩers. (f) CondiƟons ofTitle. EscrowHolder shallcausea currentcommitment for Ɵtleinsurance ("TitleCommitment") concerningthe Propertyissuedby the TitleCompany,aswell aslegiblecopies ofall documentsreferred tointhe TitleCommitment ("UnderlyingDocuments"),and ascaled anddimensionedplot showing the locaƟon ofany easementstobe deliveredto Buyerwithin 10or ***** daysfollowing theDateof Agreement. BuyerhasNinety(90)days fromthedateofagreement 10 daysfrom thereceipt oftheTitle Commitment,the UnderlyingDocumentsand theplot planto saƟsfyitselfwith regardto the condiƟon of Ɵtle. Thedisapproval byBuyer ofanymonetary encumbrance,which bytheterms ofthis Agreementisnot toremain againstthe Property aŌerthe Closing,shall notbeconsidered afailure ofthis conƟngency,asSeller shallhave the obligaƟon,at Seller'sexpense, to saƟsfyand removesuch disapproved monetaryencumbrance ator beforetheClosing.
(g) Survey. Buyer has30 or Ninety (90) daysfollowingtheDateofAgreement receiptofthe TitleCommitment andUnderlying Documents to saƟsfyitself withregardtoanyALTA Ɵtlesupplement basedupona surveyprepared toAmerican LandTitle AssociaƟon ("ALTA")standards foran owner'spolicy bya licensedsurveyor,showing thelegal descripƟonand boundarylinesof theProperty,anyeasementsof record,and anyimprovements,poles, structuresand thingslocated within10feet ofeither sideof thePropertyboundary lines. Anysuchsurvey shallbe preparedatBuyer's direcƟonand expense. If Buyerhas obtaineda surveyandapproved theALTA Ɵtlesupplement, Buyermayelect withinthe periodallowedfor Buyer'sapproval ofasurvey tohave anALTA extendedcoverage owner'sform of Ɵtlepolicy,inwhich eventBuyer shallpayany addiƟonal premium aƩributablethereto. (h) ExisƟngLeases andTenancyStatements. Seller shall within 10or ***** daysfollowing theDate ofAgreementprovide bothBuyer and EscrowHolder withlegible copiesofall leases,subleases orrental arrangements (collecƟvely,"ExisƟng Leases") affecƟng theProperty,and witha tenancystatement ("Estoppel CerƟficate") inthe latestformor equivalentto thatpublished bytheAIR, executedby Sellerand/oreach tenantand subtenantofthe Property. Sellershall useits best efforts tohaveeach tenantcomplete andexecute anEstoppel CerƟficate. If anytenantfails orrefuses toprovidean Estoppel CerƟficate thenSeller shall completeand executean Estoppel CerƟficatefor thattenancy. Buyer has10Ninety(90)days fromtheDateofAgreement receipt ofsaid ExisƟngLeases andEstoppel CerƟficatesto saƟsfyitselfwith regardto the ExisƟngLeases andany othertenancy issues. (i) Owner's AssociaƟon. Seller shallwithin10 or daysfollowing theDate ofAgreementprovide Buyerwith astatementand transfer packagefrom anyowner's associaƟonservicingthe Property. Suchtransfer packageshallat aminimum include:copiesof the associaƟon's bylaws, arƟclesof incorporaƟon,current budgetand financialstatement. Buyerhas 10days fromthereceipt ofsuch documentsto saƟsfy itselfwith regardtothe associaƟon. (j) OtherAgreements. Sellershall within10 or ****** days followingthe DateofAgreement provideBuyer withlegiblecopies ofall other agreements("Other Agreements")known toSellerthat will affect theProperty aŌerClosing. Buyerhas Ninety(90) 10days fromtheDateof Agreement receiptofsaid OtherAgreements to saƟsfy itselfwithregard tosuch Agreements. (k) Financing. Ifparagraph5 hereofdealing witha financing conƟngencyhas notbeenstricken, the saƟsfacƟon orwaiverof suchNew Loan conƟngency. (l) ExisƟngNotes. If paragraph3.1(c)has notbeen stricken,Seller shallwithin10 or daysfollowing theDateof Agreementprovide Buyer withlegible copiesof the ExisƟngNotes, ExisƟngDeeds ofTrustandrelatedagreements (collecƟvely,"Loan Documents")towhich theProperty willremainsubject aŌerthe Closing. EscrowHoldershall promptlyrequest fromthe holdersofthe ExisƟngNotes abeneficiarystatement ("BeneficiaryStatement") confirming:(1)the amountof theunpaid principalbalance,the currentinterest rate,and thedateto whichinterest ispaid,and (2)the natureandamount ofany impoundsheld bythe beneficiaryin connecƟonwith suchloan. Buyerhas 10or days followingthereceipt ofthe LoanDocumentsand BeneficiaryStatements to saƟsfy itself withregard tosuch financing. Buyer's obligaƟonto closeis condiƟoneduponBuyer beingable topurchasethe Propertywithout acceleraƟonorchange inthe terms ofany ExisƟngNotes orchargesto Buyerexcept asotherwise providedinthis Agreementor approvedbyBuyer,provided,however,Buyershallpay thetransfer fee referredto inparagraph 3.2hereof. Likewiseif Selleris tocarryback aPurchase MoneyNotethen Sellershall within10or daysfollowingthe Dateof Agreementprovide Buyerwith acopyof theproposed PurchaseMoney NoteandPurchase MoneyDeed ofTrust. Buyerhas 10or days followingthe receiptof suchdocuments to saƟsfyitself withregard to theformand contentthereof. (m) PersonalProperty. In theeventthat anypersonal propertyis includedinthe PurchasePrice, Buyerhas 10or Ninety (90) daysfollowing theDate ofAgreement to saƟsfyitself withregardtothe Ɵtle condiƟonof suchpersonal property. Seller recommendsthat Buyerobtaina UCC-1report. Any such Docusign Envelope ID: 0A22AEC4-BD64-4AC5-99A3-A58A8D2D81A4
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reportshall bepaid forbyBuyer. Seller shallprovide Buyercopiesof anyliens orencumbrancesaffecƟng suchpersonal propertythatit isaware ofwithin 10or ***** daysfollowing theDate ofAgreement.
(n) DestrucƟon,Damage orLoss. Subsequentto theDate ofAgreementand priorto Closingthere shallnothave occurreda destrucƟonof,or damageor lossto, theProperty orany porƟon thereof,from anycause whatsoever,whichwould costmore than$10,000.00to repairor cure. If thecost ofrepair orcureis $10,000.00or less,Seller shallrepairor curethe lossprior totheClosing. Buyer shallhavethe opƟon,within 10days aŌer receiptof wriƩen noƟce ofaloss cosƟng morethan $10,000.00to repairorcure, toeither terminatethis Agreementorto purchasethe Propertynotwithstandingsuch loss,but without deducƟonor offset againstthe PurchasePrice. Ifthe costto repairor cureismore than$10,000.00, andBuyerdoes notelect toterminatethis Agreement,Buyer shallbe enƟtledtoany insuranceproceeds applicableto suchloss. Unlessotherwise noƟfiedin wriƟng,EscrowHolder shallassume nosuch destrucƟon, damageor losshasoccurred prior toClosing.
(o) MaterialChange. Buyer shallhave10 daysfollowing receiptof wriƩen noƟceof aMaterialChange withinwhich to saƟsfy itselfwithregard tosuch change. "MaterialChange" shallmeana substanƟaladverse changein theuse,occupancy, tenants, Ɵtle, or condiƟonof theProperty thatoccurs aŌer thedate ofthis offerand priorto theClosing. Unlessotherwise noƟfiedin wriƟng,EscrowHolder shallassume thatnoMaterial Changehas occurredpriorto theClosing. (p) SellerPerformance. The deliveryofall documentsand thedueperformance bySeller ofeach andeveryundertaking andagreement tobeperformed bySeller underthis Agreement.
(q) BrokerageFee. Payment attheClosing ofsuch brokeragefeeas is specified inthis Agreementorlater wriƩen instrucƟons toEscrowHolder executed bySeller andBrokers("BrokerageFee"). Itis agreedby the ParƟesand EscrowHolder thatBrokersare athird party beneficiaryof thisAgreement insofaras the BrokerageFee isconcerned, andthatno changeshall bemade withrespectto thepayment oftheBrokerageFee specified inthisAgreement, withoutthe wriƩen consentof Brokers.
9.2 All ofthe conƟngencies specified insubparagraphs(a) through(m) ofparagraph9.1 arefor the benefitof,andmay bewaived by,Buyer,and maybe elsewhereherein referredto as"Buyer's ConƟngencies."
9.3 If anyof Buyer's ConƟngencies oranyother maƩersubject toBuyer'sapproval isdisapproved asprovidedfor hereinin a Ɵmely manner("Disapproved Item"),Seller shallhave therightwithin 10days followingthe receiptof noƟce ofBuyer's disapprovaltoelect tocure suchDisapprovedItem priorto theExpected ClosingDate ("Seller's ElecƟon"). Seller'sfailure togive toBuyer withinsuchperiod, wriƩen noƟce ofSeller'scommitment tocure suchDisapprovedItem onor beforethe ExpectedClosing Dateshallbe conclusivelypresumed tobe Seller's ElecƟonnot tocure suchDisapprovedItem. If Sellerelects,either by wriƩen noƟceor failureto give wriƩen noƟce,notto curea DisapprovedItem, Buyershallhave theright, within10days aŌerSeller's ElecƟontoeither accept Ɵtle tothe Property subjectto suchDisapproved Item,orto terminatethis Agreement. Buyer'sfailureto noƟfySeller in wriƟngof Buyer's elecƟon toaccept Ɵtle tothe Propertysubject tothe DisapprovedItem without deducƟonor offsetshall consƟtuteBuyer's elecƟontoterminate thisAgreement. Theabove Ɵmeperiods onlyapplyonce foreach DisapprovedItem. Unless expresslyprovidedotherwise herein,Seller's rightto cureshallnot applyto the remediaƟonof HazardousSubstance CondiƟonsorto the Financing ConƟngency. Unless the ParƟesmutually instructotherwise, ifthe Ɵmeperiodsfor the saƟsfacƟon of conƟngenciesor forSeller's andBuyer's elecƟons wouldexpire ona date aŌerthe ExpectedClosing Date,the ExpectedClosingDate shallbe deemedextendedfor 3business daysfollowingthe expiraƟonof: (a)the applicable conƟngency period(s),(b) theperiodwithin whichthe Sellermay electtocure theDisapproved Item,or(c) ifSeller electsnotto cure,the periodwithin whichBuyer mayelect toproceedwith this transacƟon, whicheveris later.
9.4 The ParƟesacknowledge thatextensive local,stateand Federal legislaƟon establishbroadliability uponowners and/orusersof realproperty forthe invesƟgaƟonand remediaƟonof HazardousSubstances. The determinaƟon ofthe existenceofa HazardousSubstance CondiƟonandthe evaluaƟonof theimpactof sucha condiƟonare highlytechnicaland beyondthe experƟseof Brokers. The ParƟesacknowledge thattheyhave beenadvised byBrokersto consulttheir own technicaland legalexperts withrespectto thepossible presenceof HazardousSubstanceson theProperty oradjoining properƟes, andBuyer andSellerare not relyingupon any invesƟgaƟon byorstatement ofBrokerswithrespect thereto. The ParƟeshereby assumeallresponsibility forthe impactofsuch Hazardous Substancesupon their respecƟve interestsherein.
10. Documents andOther ItemsRequiredat orBefore Closing.
10.1 Five dayspriorto theClosing dateEscrowHolder shallobtain anupdatedTitle Commitmentconcerning thePropertyfrom theTitle Companyand provide copiesthereof toeach ofthe ParƟes.
10.2 Seller shalldeliverto EscrowHolder in Ɵmefor deliveryto Buyeratthe Closing:
(a) Grant orgeneral warrantydeed,duly executedand inrecordable form,conveyingfee Ɵtleto thePropertyto Buyer. (b) Ifapplicable, the Beneficiary Statementsconcerning ExisƟng Note(s). (c) Ifapplicable, the ExisƟng LeasesandOther Agreementstogether withduly executedassignmentsthereof bySeller andBuyer. Theassignment of ExisƟngLeases shallbe onthemost recentAssignment and AssumpƟon ofLessor'sInterest inLease formpublishedby theAIR oritsequivalent. (d) An affidavit executedby Sellertothe effectthat Sellerisnot a"foreign person"within themeaningof InternalRevenue Code SecƟon1445 or successorstatutes. If Sellerdoesnot providesuch affidavitin formreasonably saƟsfactory toBuyer atleast3 businessdays priortothe Closing,Escrow Holdershall at theClosing deductfrom Seller'sproceedsand remitto theInternal RevenueServicesuch sumas isrequiredby applicableFederal lawwithrespect topurchases from foreignsellers.
(e) If thePropertyis locatedin California,an affidavitexecutedby Sellerto the effectthat Selleris nota''nonresident" withinthe meaningof California Revenueand TaxCode SecƟon18662or successorstatutes. If Sellerdoesnot providesuch affidavitinform reasonably saƟsfactory toBuyerat least3 businessdays priorto theClosing, EscrowHoldershall atthe Closingdeduct fromSeller'sproceeds andremit totheFranchise TaxBoard suchsumas isrequired bysuch statute. (f) If applicable,abill ofsale, dulyexecuted,conveying Ɵtleto anyincludedpersonal propertyto Buyer. (g) If theSeller isa corporaƟon,aduly executedcorporate resoluƟonauthorizingthe execuƟonof thisAgreementand thesale ofthe Property.
10.3 Buyer shalldeliverto Sellerthrough Escrow:
(a) The cash porƟon ofthePurchase Priceand such addiƟonal sumsasare requiredof Buyerunderthis Agreementshall bedepositedby Buyerwith EscrowHolder,byfederal fundswiretransfer,orany othermethod acceptabletoEscrow Holderin immediatelycollectablefunds, nolater than2:00P.M. onthe businessday priorto theExpectedClosing Dateprovided, however,that Buyershallnot berequired todepositsuch moniesinto Escrowifat the Ɵme setfor the depositof suchmonies Sellerisin defaultor hasindicated thatitwill notperform anyofits obligaƟonshereunder. Instead,in suchcircumstances inorder toreserve itsrights toproceed Buyerneedonly provideEscrow withevidence establishingthatthe requiredmonies wereavailable. (b) Ifa PurchaseMoney NoteandPurchase MoneyDeed ofTrustare calledfor bythis Agreement,theduly executedoriginals ofthosedocuments, the PurchaseMoney Deedof Trustbeingin recordableform, togetherwith evidenceof fire insuranceon theimprovementsin theamount ofthefull replacementcost namingSeller asa mortgagelosspayee, anda realestatetaxservicecontract (atBuyer's expense),assuringSeller of noƟce ofthestatus ofpayment ofreal property taxesduring thelife ofthePurchase MoneyNote.
(c) TheAssignment and AssumpƟon ofLessor'sInterest inLease form specified inparagraph10.2(c) above,duly executedbyBuyer. (d) AssumpƟonsduly executedby Buyerofthe obligaƟonsof Sellerthataccrue aŌerClosing underany OtherAgreements. (e) If applicable,a wriƩen assumpƟonduly executedby Buyerofthe loandocuments withrespectto ExisƟngNotes. (f) If theBuyeris a corporaƟon, adulyexecuted corporate resoluƟon authorizingthe execuƟon ofthis Agreementand thepurchaseof theProperty.
10.4 At Closing,EscrowHolder shallcause tobeissued toBuyer astandardcoverage (orALTAextended,ifelected pursuantto 9.1(g))owner's formpolicyof Ɵtle insurance effecƟveasof theClosing,issued bythe TitleCompany inthefull amountof thePurchasePrice, insuring Ɵtle totheProperty vestedin Buyer,subject onlyto the excepƟons approvedby Buyer. In theevent thereis aPurchaseMoney Deedof Trustinthis transacƟon,the policyof Ɵtle insuranceshall bea joint protecƟon policyinsuring bothBuyer andSeller.
IMPORTANT:IN APURCHASE OREXCHANGEOF REALPROPERTY,ITMAYBEADVISABLETO OBTAINTITLE INSURANCEINCONNECTION WITHTHE CLOSEOF ESCROWSINCE THEREMAYBEPRIORRECORDED LIENSAND ENCUMBRANCESWHICH AFFECTYOURINTEREST INTHE PROPERTYBEINGACQUIRED. A NEWPOLICY OFTITLE INSURANCE SHOULD BEOBTAINEDIN ORDERTO ENSUREYOUR INTERESTINTHE PROPERTYTHATYOUAREACQUIRING.
11. ProraƟons andAdjustments.
11.1 Taxes. Applicablereal propertytaxes andspecialassessment bondsshall beproratedthrough Escrowas ofthedate ofthe Closing,based uponthelatest taxbill available. The ParƟesagree toprorateasof theClosingany taxesassessed againsttheProperty bysupplemental billleviedby reasonof eventsoccurring prior tothe Closing. Paymentofthe proratedamount shallbe madepromptlyin cashupon receiptofa copyof anysupplementalbill.
11.2 Insurance. WARNING:Any insurancewhich Sellermayhave maintainedwill terminateonthe Closing. Buyerisadvised toobtain appropriateinsurance to coverthe Property.
11.3 Rentals, InterestandExpenses. Scheduled rentals,intereston ExisƟngNotes, uƟliƟes,and operaƟng expensesshall beproratedas ofthe dateof Closing.
The ParƟes agreeto promptlyadjustbetween themselvesoutside ofEscrow anyrentsreceived aŌerthe Closing.
11.4 Security Deposit. Security Depositsheld bySellershall begiven toBuyeras acredit tothecash requiredof Buyerat theClosing.
11.5 Post Closing MaƩers. Anyitem tobeprorated thatis notdeterminedor determinableat theClosingshall bepromptly adjustedby the ParƟesby appropriatecash paymentoutside oftheEscrow whenthe amountdue isdetermined.
11.6 VariaƟons in ExisƟngNote Balances. Intheevent thatBuyer ispurchasingthe Propertysubject toan ExisƟng Deedof Trust(s),and intheevent thata Docusign Envelope ID: 0A22AEC4-BD64-4AC5-99A3-A58A8D2D81A4
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BeneficiaryStatement asto theapplicable ExisƟng Note(s)discloses thatthe unpaidprincipalbalance ofsuch ExisƟngNote(s)at theclosing willbemore orless than theamount setforth inparagraph3.1(c) hereof("ExisƟng Note VariaƟon"), thenthePurchase MoneyNote(s) shallbereduced orincreased byanamount equalto such ExisƟng Note VariaƟon. Ifthere isto beno PurchaseMoneyNote, thecash requiredatthe Closingper paragraph3.1(a)shall bereduced orincreased bythe amountof such ExisƟng Note VariaƟon.
11.7 VariaƟons inNewLoan Balance. Intheevent Buyeris obtainingaNew Loanand theamount ulƟmately obtainedexceeds theamount setforthin paragraph5.1, thenthe amountofthe PurchaseMoney Note,if any,shallbe reducedby theamountof suchexcess.
11.8 Owner's AssociaƟonFees. EscrowHolder shall:(i)bring Seller'saccount withthe associaƟon currentand payanydelinquencies ortransfer feesfrom Seller'sproceeds, and(ii) payanyup frontfees requiredby the associaƟonfrom Buyer'sfunds.
12. RepresentaƟons and WarranƟes ofSellerand Disclaimers.
12.1 Seller's warranƟesand representaƟons shallsurvive theClosingand deliveryof thedeedfor aperiod of3years, andany lawsuitor acƟonbasedupon them mustbe commencedwithin such Ɵmeperiod. Seller's warranƟesand representaƟonsaretrue, materialand relieduponby Buyerand Brokersinall respects. Seller herebymakes thefollowing warranƟesand representaƟons toBuyer andBrokers:
(a) Authority ofSeller. Selleris theowner ofthe Propertyand/orhas thefull right,powerand authorityto sell,conveyand transferthe Propertyto Buyer asprovided herein,and toperformSeller's obligaƟonshereunder. (b) MaintenanceDuring Escrowand Equipment CondiƟonAt Closing. Exceptasotherwise providedin paragraph9.1(n) hereof,Sellershall maintainthe Property unƟl theClosing initspresent condiƟon,ordinary wearand tearexcepted. (c) HazardousSubstances/Storage Tanks. Sellerhasno knowledge,except asotherwise disclosedtoBuyer in wriƟng, oftheexistence orprior existence onthe Propertyof anyHazardousSubstance, norof theexistence orpriorexistence ofany aboveorbelow groundstorage tank. (d) Compliance. Exceptas otherwisedisclosedin wriƟng,Seller hasnoknowledge ofany aspector condiƟonofthe Propertywhich violatesapplicable laws,rules, regulaƟons,codes orcovenants, condiƟons or restricƟons, orof improvementsor alteraƟons madeto thePropertywithout apermit whereonewas required,or ofany unfulfilledorderor direcƟveof anyapplicable governmentalagencyor casualtyinsurance companyrequiringany invesƟgaƟon, remediaƟon, repair, maintenanceor improvementbe performedonthe Property.
(e) Changes inAgreements. Priorto theClosing, Sellerwillnot violateor modifyany ExisƟng Leaseor OtherAgreement,or createany newleases or otheragreements affecƟngthe Property,withoutBuyer's wriƩenapproval, whichapproval willnotbe unreasonablywithheld. (f) Possessory Rights. Seller hasno knowledgethatanyone will,at theClosing,have anyright topossession oftheProperty,exceptas disclosedbythis Agreementor otherwisein wriƟngtoBuyer.
(g) Mechanics' Liens. Thereare no unsaƟsfiedmechanics' ormaterialmens' lienrightsconcerning theProperty. (h) AcƟons,Suits orProceedings. Sellerhas noknowledge ofany acƟons, suitsor proceedingspending orthreatenedbefore anycommission, board, bureau,agency,arbitrator,court ortribunalthat would affect theProperty ortheright tooccupy or uƟlizesame. (i) NoƟceof Changes. Sellerwill promptly noƟfyBuyer andBrokersin wriƟngof anyMaterial Change(seeparagraph 9.1(o)) affecƟng theProperty that becomesknown toSeller priortothe Closing.
(j) NoTenantBankruptcy Proceedings. Sellerhas no noƟceor knowledgethat anytenantof theProperty isthesubject ofa bankruptcyor insolvency proceeding.
(k) NoSeller BankruptcyProceedings. Selleris notthesubject ofa bankruptcy,insolvencyor probateproceeding. (l) PersonalProperty. Seller hasno knowledgethatanyone will,at theClosing,have anyright topossessionof anypersonal propertyincluded inthe PurchasePrice norknowledge ofanyliens orencumbrances affecƟngsuch personalproperty,except asdisclosed bythisAgreement orotherwise in wriƟngto Buyer.
12.2 Buyer herebyacknowledgesthat, exceptas otherwisestatedin thisAgreement, Buyerispurchasing theProperty inits exisƟng condiƟonand will,by the Ɵmecalled forherein, makeorhave waivedall inspecƟonsof thePropertyBuyer believesare necessarytoprotect itsown interestin,and itscontemplated useof,the Property. The ParƟes acknowledgethat,except asotherwise statedin thisAgreement,no representaƟons,inducements, promises,agreements,assurances, oralor wriƩen,concerning theProperty,oranyaspect ofthe occupaƟonalsafety andhealthlaws, HazardousSubstance laws,orany otheract, ordinanceorlaw,havebeen madeby eitherParty orBrokers,or reliedupon byeither Partyhereto.
12.3 In theeventthat Buyerlearns thataSeller representaƟonor warrantymightbe untrueprior totheClosing, andBuyer electsto purchasetheProperty anywaythen, andin thatevent,Buyer waivesany rightthat itmayhave tobring an acƟonor proceedingagainst SellerorBrokersregardingsaid representaƟonor warranty.
12.4 Any environmentalreports,soils reports,surveys, andothersimilar documentswhich werepreparedby thirdparty consultantsandprovided toBuyer by Selleror Seller's representaƟves, havebeendelivered asan accommodaƟonto Buyerandwithout any representaƟon orwarrantyas tothe sufficiency,accuracy, completeness,and/or validityof saiddocuments,all ofwhich Buyerrelies onatits ownrisk. Sellerbelieves saiddocuments tobeaccurate, butBuyer isadvised to retainappropriate consultantsto reviewsaiddocuments and invesƟgatetheProperty.
13. Possession.
Possessionof theProperty shallbegiven toBuyer atthe Closingsubjectto therights oftenantsunder ExisƟngLeases.
14. Buyer's Entry.
Atany Ɵmeduring theEscrowperiod, Buyer,and itsagents and representaƟves,shall havethe rightatreasonable Ɵmesand subjecttorights oftenants, toenter upon theProperty forthe purposeofmaking inspecƟons and tests specified inthisAgreement. No destrucƟve tesƟngshall beconducted, however,withoutSeller's prior approvalwhich shallnot beunreasonablywithheld. Following anysuch entryorwork, unlessotherwise directedin wriƟng bySeller,Buyershallreturn theProperty to the condiƟon itwas inpriorto suchentry orwork, includingthere-compacƟon orremoval ofanydisrupted soilor materialasSeller mayreasonably direct. Allsuch inspecƟonsand testsand anyotherwork conductedor materialsfurnished withrespectto theProperty byorfor Buyershall bepaidfor byBuyer asand whendue andBuyer shallindemnify,defend,protectand holdharmless Sellerand thePropertyof andfrom anyandall claims, liabiliƟes, losses,expenses(including reasonable aƩorneys'fees), damages,including thoseforinjury toperson orproperty,arisingoutof orrelaƟng toanysuch workor materialsorthe actsor omissionsof Buyer,its agentsor employeesin connecƟontherewith.
15. Further Documentsand Assurances.
The ParƟes shalleach, diligentlyandin goodfaith, undertakeall acƟonsandprocedures reasonablyrequired toplacethe Escrowin condiƟonforClosing asand when requiredby thisAgreement. The ParƟes agreeto provideall further informaƟon,and toexecute anddeliverall furtherdocuments, reasonablyrequiredby Escrow Holderor theTitle Company.
16. AƩorneys' Fees.
Ifany Partyor Brokerbringsan acƟonor proceeding(including arbitraƟon)involvingthe Propertywhether foundedintort, contractor equity,orto declarerights hereunder,the PrevailingParty (as hereaŌer defined) inany suchproceeding, acƟon,orappeal thereon,shall be enƟtledto reasonable aƩorneys' feesandcosts. Such feesmay beawarded inthesame suitor recoveredin aseparatesuit, whetheror notsuch acƟon orproceeding ispursuedto decisionor judgment. Theterm "PrevailingParty" shallinclude, without limitaƟon,a Partyor Brokerwho substanƟallyobtainsor defeatsthe reliefsought,as thecase maybe,whether by compromise, seƩlement, judgment,or theabandonment by theother Partyor Brokerofits claimor defense. The aƩorneys'fees awardshallnot becomputed in accordancewith anycourt feeschedule,but shallbe suchas tofullyreimburse all aƩorneys' feesreasonablyincurred.
17. Prior Agreements/Amendments.
17.1 This Agreementsupersedesany andall prioragreementsbetween Sellerand Buyerregardingthe Property.
17.2 Amendments tothisAgreement are effecƟve onlyifmade in wriƟng andexecutedby Buyerand Seller.
18. Broker's Rights.
18.1 If thissaleis notconsummated duetothe defaultof eithertheBuyer orSeller,the defaulƟngParty shallbe liableto andshallpay toBrokerstheBrokerage Feethat Brokerswould havereceivedhad thesale beenconsummated. IfBuyer isthe defaulƟngparty,payment ofsaid BrokerageFeeis in addiƟon toany obligaƟon withrespect toliquidated orotherdamages.
18.2 Upon theClosing,Brokersareauthorized topublicizethe factsof this transacƟon.
19. NoƟces.
19.1 Whenever anyParty,Escrow Holderor Brokershereinshall desireto giveorserve any noƟce, demand,request,approval, disapprovalor other communicaƟon,each such communicaƟon shallbein wriƟngand shallbe deliveredpersonally,by messenger,or bymail,postage prepaid,to theaddressset forthin thisagreement orby facsimiletransmission,electronic signature,digital signature,or email.
19.2 Service ofanysuch communicaƟonshall bedeemedmade onthe dateofactual receiptif personallydelivered,or transmiƩedby facsimiletransmission, electronicsignature, digitalsignature, oremail. Anysuch communicaƟonsent byregularmail shallbe deemedgiven48 hours aŌer thesameis mailed.
Docusign Envelope ID: 0A22AEC4-BD64-4AC5-99A3-A58A8D2D81A4
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CommunicaƟonssent byUnited StatesExpressMail orovernight courierthat guaranteenextday deliveryshall bedeemeddelivered 24hours aŌerdeliveryof the sameto thePostal Serviceorcourier. If such communicaƟon isreceivedon aSaturday,Sundayorlegal holiday,it shallbedeemed receivedon thenext businessday.
19.3 Any PartyorBrokerheretomay from Ɵmeto Ɵme,by noƟcein wriƟng, designatea differentaddressto which,or a different personor addiƟonal persons towhom, all communicaƟons are thereaŌerto bemade.
20. DuraƟon of Offer.
20.1 If this offeris notaccepted bySelleron orbefore 5:00P.M.according tothe Ɵmestandardapplicable tothe cityof Fontana, CA onthe dateof Friday August 1st, 2025 ,itshall bedeemed automaƟcallyrevoked.
20.2 The acceptanceofthis offer ,or ofanysubsequent counterofferhereto, thatcreatesan agreementbetween the ParƟesas describedin paragraph1.2, shall bedeemed madeupon deliverytothe otherParty oreither Brokerhereinof aduly executed wriƟnguncondiƟonally accepƟngthe lastoutstanding offer or counteroffer.
21. LIQUIDATEDDAMAGES. (ThisLiquidatedDamages paragraphis applicableonlyif iniƟaledby both ParƟes).
THEPARTIESAGREETHATITWOULDBE IMPRACTICABLE OR EXTREMELYDIFFICULTTOFIX,PRIOR TOSIGNING THISAGREEMENT,THE ACTUALDAMAGES WHICH WOULDBE SUFFEREDBYSELLERIFBUYER FAILSTOPERFORMITS OBLIGATIONSUNDERTHIS AGREEMENT. THEREFORE,IF,AFTER THESATISFACTIONORWAIVER
OFALL CONTINGENCIES PROVIDED FORTHEBUYER'S BENEFIT,BUYER BREACHESTHIS AGREEMENT,SELLERSHALL BEENTITLED TOLIQUIDATEDDAMAGES INTHE AMOUNTOF $100,000 . UPONPAYMENTOF SAIDSUM TOSELLER, BUYERSHALLBE RELEASEDFROM ANYFURTHERLIABILITY TOSELLER, ANDANY ESCROWCANCELLATION FEESAND TITLECOMPANYCHARGES SHALLBE PAIDBYSELLER.
Buyer's IniƟals Seller's IniƟals
22. ARBITRATION OFDISPUTES. (This ArbitraƟon ofDisputes paragraphisapplicable onlyif iniƟaledby both ParƟes.)
22.1 ANYCONTROVERSY ASTOWHETHERSELLERIS ENTITLEDTOLIQUIDATEDDAMAGESAND/OR BUYERIS ENTITLEDTO THERETURNOF THEDEPOSIT SHALLBE DETERMINED BYBINDINGARBITRATIONADMINISTERED BYTHE JUDICIALARBITRATION &MEDIATIONSERVICES, INC.("JAMS") INACCORDANCEWITH ITSCOMMERCIAL ARBITRATIONRULES ("COMMERCIALRULES"). ARBITRATIONHEARINGS SHALLBE HELDINTHE COUNTYWHERE THEPROPERTYIS LOCATED.
SUCHCONTROVERSY SHALLBE ARBITRATEDBYA SINGLEARBITRATOR, APPOINTEDUNDER THECOMMERCIALRULES WHOHAS HADATLEAST 5YEARS OF EXPERIENCEIN THETYPE OFREALESTATETHATIS THESUBJECT OFTHISAGREEMENT.THEARBITRATORSHALLHEARAND DETERMINE SAID CONTROVERSYIN
ACCORDANCEWITH APPLICABLELAW OFTHEJURISDICTION WHERETHE PROPERTYIS LOCATED,THEINTENTION OFTHE PARTIESASEXPRESSED INTHIS AGREEMENTAND ANYAMENDMENTS THERETO,ANDUPON THEEVIDENCE PRODUCEDATANARBITRATIONHEARING. PRE-ARBITRATIONDISCOVERY SHALLBE PERMITTEDIN ACCORDANCEWITH THECOMMERCIALRULES ORSTATELAWAPPLICABLE TOARBITRATIONPROCEEDINGS. THEARBITRATORSHALLRENDERAN AWARDWITHIN 30DAYSAFTERTHECONCLUSION OFTHE HEARING,WHICH MAYINCLUDEATTORNEYS'FEESAND COSTSTOTHE PREVAILINGPARTYPER PARAGRAPH16 HEREOFAND SHALLBEACCOMPANIED BYA REASONEDOPINION. THEFAILUREOR REFUSALOF APARTYTO PAYSUCH PARTY’SREQUIREDSHARE
OFTHE DEPOSITSFOR ARBITRATORCOMPENSATIONOR ADMINISTRATIVECHARGES SHALLCONSTITUTE AWAIVERBYSUCHPARTY TOPRESENTEVIDENCE OR
CROSS-EXAMINEWITNESSES, BUTSUCH WAIVERSHALLNOT ALLOWFOR ADEFAULTJUDGMENTAGAINSTTHE NON-PAYINGPARTY INTHEABSENCE OFEVIDENCE ANDLEGAL ARGUMENTAS THEARBITRATORMAYREQUIREFOR MAKINGAN AWARD.JUDGMENTMAYBEENTERED ONTHEAWARDINANY COURTOF COMPETENTJURISDICTION NOTWITHSTANDINGTHE FAILUREOFA PARTYDULYNOTIFIEDOF THEARBITRATIONHEARING TOAPPEAR THEREAT.
22.2 BUYER'S RESORTTOOR PARTICIPATIONIN SUCHARBITRATIONPROCEEDINGS SHALLNOT BARSUITIN ACOURT OFCOMPETENTJURISDICTION BYTHE
BUYERFOR DAMAGESAND/OR SPECIFICPERFORMANCEUNLESS ANDUNTIL THEARBITRATION RESULTSINAN AWARDTO THESELLEROF LIQUIDATEDDAMAGES, IN WHICHEVENT SUCHAWARDSHALLACTAS ABAR AGAINSTANY ACTIONBYBUYER FORDAMAGES AND/ORSPECIFICPERFORMANCE.
22.3 NOTICE: BYINITIALINGIN THESPACEBELOWYOUARE AGREEINGTOHAVEANYDISPUTE ARISINGOUT OFTHEMATTERS INCLUDEDIN THE"ARBITRATION OFDISPUTES" PROVISIONDECIDED BYNEUTRALARBITRATIONASPROVIDED BYCALIFORNIA LAWANDYOU AREGIVING UPANYRIGHTS YOUMIGHT POSSESSTO HAVETHE DISPUTELITIGATEDINACOURT ORJURY TRIAL. BYINITIALINGIN THESPACEBELOWYOUARE GIVINGUP YOURJUDICIALRIGHTS TODISCOVERY AND APPEAL,UNLESS SUCHRIGHTS ARESPECIFICALLYINCLUDED INTHE "ARBITRATIONOF DISPUTES"PROVISION. IFYOU REFUSETOSUBMIT TOARBITRATION AFTER AGREEINGTO THISPROVISION, YOUMAYBE COMPELLEDTO ARBITRATEUNDER THEAUTHORITYOF THECALIFORNIA CODEOFCIVIL PROCEDURE. YOURAGREEMENT TOTHIS ARBITRATIONPROVISION ISVOLUNTARY.
WEHAVE READAND UNDERSTANDTHEFOREGOING ANDAGREE TOSUBMIT DISPUTESARISINGOUT OFTHE MATTERSINCLUDEDIN THE"ARBITRATION OFDISPUTES" PROVISIONTO NEUTRALARBITRATION.
Buyer's IniƟals Seller's IniƟals
23. Miscellaneous.
23.1 Binding Effect. This Agreementshall bebindingon the ParƟes withoutregardto whetheror notparagraphs21 and22 are iniƟaled bybothof the ParƟes.
Paragraphs21 and22 areeachincorporated intothis Agreementonly if iniƟaledby both ParƟes atthe Ɵme thatthe Agreementisexecuted. Signatures tothis Agreementaccomplished bymeans ofelectronicsignature orsimilar technologyshall belegaland binding.
23.2 Applicable Law. This Agreementshall begovernedby,andparagraph 22.3isamended torefer to,thelaws ofthe statein whichtheProperty islocated.
Any liƟgaƟon or arbitraƟon betweenthe ParƟes heretoconcerning thisAgreement shallbe iniƟated inthe countyinwhich theProperty islocated.
23.3 Time ofEssence. Timeis oftheessence ofthis Agreement.
23.4 Counterparts. ThisAgreement maybe executedbyBuyer andSeller incounterparts,each ofwhich shallbedeemed anoriginal, andall ofwhichtogether shall consƟtute oneand thesameinstrument. Escrow Holder, aŌer verifyingthatthe counterpartsare idenƟcalexceptfor thesignatures, isauthorizedand instructed tocombine thesigned signaturepageson oneof thecounterparts, whichshallthen consƟtutethe Agreement.
23.5 Waiver ofJuryTrial. THE PARTIESHEREBYWAIVE THEIRRESPECTIVE RIGHTSTOTRIAL BYJURY INANYACTION ORPROCEEDING INVOLVINGTHE PROPERTYOR ARISINGOUT OFTHISAGREEMENT.
23.6 Conflict. Any conflict betweenthe printedprovisionsof thisAgreement andthe typewriƩen or handwriƩen provisionsshallbe controlledby the typewriƩenor handwriƩenprovisions. Sellerand Buyermust iniƟalany andall handwriƩen provisions.
23.7 1031 Exchange. Both Sellerand Buyeragreeto cooperatewith eachotherin theevent thateitheror bothwish to parƟcipate ina1031 exchange. Any party iniƟaƟng anexchange shallbearall costsof suchexchange. The cooperaƟng Partyshall nothaveany liability(special orotherwise)for damagesto the exchangingParty inthe eventthatthe saleis delayedand/or thatthesale otherwisefails toqualifyas a1031 exchange.
23.8 Days. Unlessotherwise specificallyindicated tothecontrary,theword "days"asused inthis Agreementshallmean andrefertocalendar days.
24. Disclosures RegardingThe Natureofa RealEstate Agency RelaƟonship.
24.1 The ParƟesandBrokersagreethat their relaƟonship(s)shall begoverned bytheprinciples setforth intheapplicable secƟonsof theCalifornia CivilCode,as summarizedin paragraph24.2.
24.2 When enteringintoa discussionwith arealestateagentregarding arealestate transacƟon,a BuyerorSeller shouldfrom theoutset understandwhattype ofagency relaƟonshipor representaƟonithas withthe agentor agentsinthe transacƟon. BuyerandSeller acknowledgebeing advisedbythe Brokersin this transacƟon,as follows:
(a) Seller's Agent. ASeller'sagent undera lisƟngagreement withtheSeller actsas theagentfor theSeller only. A Seller'sagent orsubagent hasthe following affirmaƟve obligaƟons:(1) TotheSeller: A fiduciary dutyof utmostcare,integrity,honesty,and loyaltyindealings withthe Seller. (2) Tothe Buyerand the Seller: a.Diligent exerciseofreasonable skillsand carein performanceofthe agent's duƟes. b.A dutyof honestandfair dealingand goodfaith. c.A dutyto disclose allfacts knownto theagentmaterially affecƟngthe valueor desirabilityofthe propertythat arenotknown to,or withinthediligent aƩenƟonand observaƟonof,the ParƟes. Anagent isnotobligated toreveal toeither Partyany confidenƟal informaƟonobtained fromtheother Partywhich doesnotinvolve the affirmaƟve duƟesset forthabove.
(b) Buyer'sAgent. A sellingagentcan, witha Buyer'sconsent,agree toact asagent fortheBuyer only. Inthese situaƟons, theagent isnotthe Seller's agent,even ifby agreementtheagent mayreceive compensaƟonfor services rendered,either infull orinpart fromthe Seller. An agent acƟng onlyfor aBuyerhas thefollowing affirmaƟve obligaƟons. (1)TotheBuyer: A fiduciary dutyofutmost care,integrity,honesty,andloyalty indealings withtheBuyer. (2) Tothe Buyerand theSeller: a.Diligent exerciseofreasonable skillsand carein performanceofthe agent's duƟes. b.A dutyof honestandfair dealingand goodfaith. c.A dutyto Docusign Envelope ID: 0A22AEC4-BD64-4AC5-99A3-A58A8D2D81A4
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discloseall factsknown totheagent materially affecƟng thevalue ordesirabilityof theproperty thatarenot knownto,orwithinthe diligent aƩenƟon and observaƟonof,the ParƟes. Anagent isnot obligatedto revealtoeither Partyany confidenƟal informaƟonobtained fromthe otherPartywhich doesnot involvethe affirmaƟve duƟes setforth above.
(c) Agent RepresenƟng BothSeller andBuyer. Areal estateagent, either acƟngdirectly orthrough oneormore associatelicenses, canlegallybe the agentof boththe Sellerandthe Buyerin a transacƟon, butonlywith theknowledge andconsentof boththe Sellerandthe Buyer. (1)In adualagency situaƟon,the agenthas thefollowing affirmaƟve obligaƟonsto boththe Sellerand theBuyer:a. A fiduciary dutyofutmost care,integrity,honestyandloyalty inthe dealingswith eitherSeller orthe Buyer.b.Other duƟesto theSeller andtheBuyer asstated aboveintheir respecƟve secƟons (a)or(b) ofthis paragraph24.2. (2)In represenƟng bothSeller andBuyer,theagentmay not,without theexpress permissionofthe respecƟveParty,disclosetothe otherParty confidenƟal informaƟon,including, but notlimited to,facts relaƟngtoeither Buyer'sor Seller's financial posiƟon, moƟvaƟons,bargaining posiƟon,or otherpersonal informaƟon thatmay impactprice, includingSeller's willingnessto acceptaprice lessthan the lisƟng priceorBuyer's willingnessto payaprice greaterthan theprice offered. (3) Theabove duƟesofthe agentin areal estate transacƟondo notrelieve aSeller orBuyerfrom theresponsibility toprotecttheir owninterests. Buyerand Sellershould carefullyread all agreementsto assurethat theyadequatelyexpress theirunderstanding ofthe transacƟon. A realestate agentisa person qualified toadviseabout realestate. If legal ortax adviceis desired,consulta competentprofessional. Buyer hastheduty toexercise reasonablecareto protectBuyer,includingasto thosefacts aboutthe Propertywhich areknown toBuyeror withinBuyer's diligent aƩenƟon and observaƟon. BothSeller andBuyershould stronglyconsider obtainingtaxadvice froma competentprofessional becausethe federalandstate taxconsequences ofa transacƟoncanbe complexand subjecttochange. (d) FurtherDisclosures. Throughout this transacƟonBuyer andSeller mayreceivemore thanone disclosure,depending uponthenumber ofagents assisƟngin the transacƟon. Buyerand Sellershould eachread itscontentseach Ɵmeit ispresented,considering the relaƟonship betweenthemand thereal estate agentin this transacƟon andthatdisclosure. Buyer andSeller eachacknowledgereceipt ofa disclosureofthe possibilityof mulƟple representaƟonby theBroker represenƟngthat principal. Thisdisclosuremay bepart ofa lisƟngagreement,buyer representaƟonagreement orseparatedocument. Buyer understandsthat Broker represenƟng Buyermay alsorepresentother potenƟalbuyers, whomay consider,make offers onor ulƟmatelyacquirethe Property. Sellerunderstandsthat Broker represenƟng Sellermay alsorepresentother sellerswith compeƟng properƟes thatmaybe ofinterest tothisBuyer. Brokershavenoresponsibility with respectto anydefault orbreachhereof byeither Party. The ParƟesagree thatno lawsuitorother legalproceeding involvinganybreach ofduty,erroror omission relaƟngto this transacƟon maybebrought againstBrokermorethan oneyear aŌer theDate ofAgreementand thatthe liability(includingcourt costsand aƩorneys' fees),of anyBroker withrespectto anybreach ofduty,errororomission relaƟngto thisAgreementshall notexceed thefeereceived bysuch Brokerpursuant tothis Agreement;provided, however,that theforegoing limitaƟon oneach Broker'sliability shallnotbe applicableto anygrossnegligence orwillful misconductofsuch Broker.
24.3 ConfidenƟal InformaƟon. Buyer andSeller agreeto idenƟfy toBrokersas "ConfidenƟal"any communicaƟonor informaƟongivenBrokersthatis considered bysuch Partyto be confidenƟal.
25. ConstrucƟon ofAgreement. Inconstruing thisAgreement, allheadingsand Ɵtlesare forthe convenienceofthe ParƟesonly andshallnot beconsidered apart ofthis Agreement. Wheneverrequiredby thecontext, thesingular shallincludethe pluraland viceversa. ThisAgreement shallnotbe construedas ifprepared by oneof the ParƟes, butratheraccording toits fairmeaning asawhole, asif both ParƟeshad preparedit.
26. AddiƟonal Provisions.
AddiƟonalprovisions ofthis offer,ifany,areas followsor are aƩachedhereto byan addendumoraddenda consisƟngof paragraphs 26.1 through
26.1 . (If thereare no addiƟonalprovisions write"NONE".)
26.1: Incorporated into the agreement is the attached ADDENDUM TO THE AIR COMMERCIAL
REAL ESTATE ASSOCIATION STANDARD OFFER, AGREEMENT AND ESCROW INSTRUCTIONS FOR PURCHASE OF REAL ESTATE which includes modifications to paragraph's 9.1(h), 11.1 & 12.1(c).
ATTENTION:NO REPRESENTATIONOR RECOMMENDATIONISMADE BYAIR CREOR BYANYBROKER ASTO THELEGALSUFFICIENCY,LEGALEFFECT,ORTAX CONSEQUENCESOF THISAGREEMENT ORTHETRANSACTION TOWHICH ITRELATES. THEPARTIESAREURGED TO:
1. SEEKADVICE OFCOUNSELAS TOTHE LEGALANDTAXCONSEQUENCESOF THISAGREEMENT.
2. RETAINAPPROPRIATE CONSULTANTSTOREVIEW ANDINVESTIGATETHECONDITIONOF THEPROPERTY.SAIDINVESTIGATION SHOULDINCLUDEBUT NOT BELIMITED TO:THE POSSIBLEPRESENCEOF HAZARDOUSSUBSTANCES,THEZONING OFTHEPROPERTY,THEINTEGRITY ANDCONDITIONOF ANYSTRUCTURES ANDOPERATINGSYSTEMS,AND THESUITABILITYOF THEPROPERTY FORBUYER'S INTENDEDUSE.
WARNING:IF THEPROPERTY ISLOCATEDIN ASTATEOTHERTHAN CALIFORNIA,CERTAINPROVISIONS OFTHIS AGREEMENTMAYNEED TOBE REVISEDTO COMPLYWITH THELAWS OFTHESTATEINWHICH THEPROPERTY ISLOCATED.
NOTE:
1. THISFORM ISNOTFOR USEIN CONNECTIONWITHTHE SALEOF RESIDENTIALPROPERTY.
2. IFEITHER PARTYISA CORPORATION,IT ISRECOMMENDEDTHATTHISAGREEMENT BESIGNED BYTWOCORPORATEOFFICERS.
Theundersigned Buyer offers andagreesto buythe Propertyon thetermsand condiƟonsstated andacknowledgesreceipt ofa copyhereof.
BROKER
Allied Commercial Real Estate Inc.
AƩn: Tony M. Guglielmo & Steven D. Roppel
Title: Broker/Owner & Senior VP
Address: 9327 Fairway View Place, Suite 300
Rancho Cucamonga, CA 91730
Phone: 909-786-4300
Fax: 909-786-4301
Email: [email protected] &
[email protected]
FederalID No.:
BrokerDRE License#: 01519318
AgentDRE License#: 01301532 & 01151111
Date:
BUYER
City of Fontana, a municipal corporation
By:
NamePrinted: Matthew C. Ballantyne
Title: City Manager
Phone:
Fax:
Email:
By:
NamePrinted:
Title:
Phone:
Fax:
Email:
Address: 8353 Sierra Avenue
Fontana, CA 92335
FederalID No.: to be provided directly to escrow
if desired
27. Acceptance.
27.1 Seller acceptstheforegoing offerto purchasetheProperty andhereby agreestosell theProperty toBuyeron theterms and condiƟons therein specified.
27.2 In consideraƟonofreal estatebrokerageservicerenderedby Brokers,Seller agreestopay Brokersa realestateBrokerage Feein asum equalto Four Docusign Envelope ID: 0A22AEC4-BD64-4AC5-99A3-A58A8D2D81A4 7/30/2025
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(4%) %ofthe PurchasePrice tobedivided betweenthe Brokersas follows:Seller'sBroker %and Buyer'sBroker %. ThisAgreement shallserve asan irrevocable instrucƟonto EscrowHolder topay suchBrokerageFee toBrokersoutofthe proceedsaccruing totheaccount ofSeller atthe Closing.
27.3 Seller acknowledgesreceiptof acopy hereofandauthorizes Brokersto deliverasigned copyto Buyer.
NOTE:A PROPERTYINFORMATION SHEETISREQUIRED TOBE DELIVEREDTO BUYERBYSELLER UNDERTHIS AGREEMENT.
BROKER
Allied Commercial Real Estate, Inc.
AƩn: Tony M. Guglielmo & Steven D. Roppel
Title: Broker/Owner & Senior VP
Address: 9327 Fairway View Place, Suite 300
Rancho Cucamonga, CA 91730
Phone: 909-786-4300
Fax: 909-786-430
Email: [email protected] &
[email protected]
FederalID No.:
BrokerDRE License#: 01519318
Agent'sDRE License#: 01301532/01151111
Date:
SELLER
Landexcorp, LLC, A California Limited
Liability Company
By:
NamePrinted: Steven Landis
Title: Managing Member
Phone: 951-231-7206
Fax:
Email: [email protected]
By:
NamePrinted:
Title:
Phone:
Fax:
Email:
Address: 5625 Land View Ct, Alta Loma, CA
91737
FederalID No.:
AIRCRE * hƩps://www.aircre.com * 213-687-8777 * [email protected] NOTICE: Nopart oftheseworks maybe reproducedin anyformwithout permissionin wriƟng.
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DISCLOSUREREGARDINGREALESTATEAGENCY RELATIONSHIP
(Asrequired bythe CivilCode)
Whenyou enterinto adiscussionwith areal estateagent regardingareal estate transacƟon, youshouldfrom theoutset understandwhattype of agency relaƟonship or representaƟon youwish tohavewith theagent inthe transacƟon.
SELLER'SAGENT
ASeller's agentunder a lisƟngagreement withthe Selleracts astheagent forthe Selleronly. ASeller's agentora subagentof thatagent hasthefollowing affirmaƟve obligaƟons:
Tothe Seller:A fiduciarydutyof utmostcare, integrity,honesty andloyaltyin dealingswith theSeller.
Tothe Buyerand theSeller:
(a) Diligent exerciseof reasonableskilland carein performanceof theagent's duƟes. (b) Aduty ofhonest andfairdealing andgood faith.
(c) Aduty todisclose allfactsknown tothe agentmaterially affecƟngthevalue ordesirability oftheproperty thatare notknownto, orwithin thediligent aƩenƟon and observaƟon of,the parƟes.
Anagent isnot obligatedtoreveal toeither partyany confidenƟal informaƟonobtained fromthe otherpartythat doesnot involvethe affirmaƟve duƟesset forthabove.
BUYER'SAGENT
ABuyer's agentcan, withaBuyer's consent,agree toact asagentfor theBuyer only. In thesesituaƟons, theagentis notthe Seller'sagent, evenifby agreementthe agentmay receive compensaƟon forservices rendered, eitherin fullor inpartfrom theSeller. Anagent acƟngonly foraBuyer hasthe following affirmaƟve obligaƟons:
Tothe Buyer:A fiduciarydutyof utmostcare, integrity,honesty andloyaltyin dealingswith theBuyer.
Tothe Buyerand theSeller:
(a) Diligent exerciseof reasonableskilland carein performanceof theagent's duƟes. (b) Aduty ofhonest andfairdealing andgood faith.
(c) Aduty todisclose allfactsknown tothe agentmaterially affecƟngthevalue ordesirability oftheproperty thatare notknownto, orwithin thediligent aƩenƟonand observaƟonof,the parƟes.
Anagent isnot obligatedtoreveal toeither partyany confidenƟal informaƟonobtained fromthe otherpartythat doesnot involvethe affirmaƟve duƟesset forth above.
AGENTREPRESENTING BOTHSELLER ANDBUYER
Areal estateagent, either acƟngdirectly orthrough oneor moresalespersonand brokerassociates, canlegallybe theagent ofboththe Sellerand theBuyer ina transacƟon,but onlywith theknowledgeand consentof boththe Sellerandthe Buyer.
Ina dualagency situaƟon,theagent hasthe following affirmaƟve obligaƟonstoboth theSeller andtheBuyer:
(a) A fiduciaryduty ofutmostcare, integrity,honesty andloyalty inthedealings witheither theSelleror theBuyer. (b) Other duƟes tothe Sellerandthe Buyeras statedabovein their respecƟve secƟons.
In represenƟng bothSeller andBuyer,a dualagent maynot, withouttheexpress permissionof the respecƟveparty,discloseto theotherparty confidenƟal informaƟon,including, butnot limitedto,facts relaƟngto eitherthe Buyer'sorSeller's financial posiƟon, moƟvaƟons,bargaining posiƟon, orother personal informaƟonthat mayimpact price,includingthe Seller'swillingness toaccept apriceless thanthe lisƟngpriceor theBuyer's willingnesstopay aprice greaterthan theprice offered.
SELLERAND BUYERRESPONSIBILITIES
Eitherthe purchaseagreement oraseparate documentwill containa confirmaƟonofwhich agentis represenƟngyouand whetherthat agentis represenƟng you exclusivelyin the transacƟon or acƟngas adual agent. Pleasepay aƩenƟon tothat confirmaƟontomake sureit accurately reflectsyour understandingof youragent’s role. Theabove duƟesofthe agentin areal estate transacƟondo notrelieve aSelleror Buyerfrom theresponsibility to protecthis orher owninterests. Youshould carefullyread allagreements toassurethat theyadequately expressyour understandingofthe transacƟon. Arealestateagentis aperson qualified toadvise about realestate. If legalortax adviceis desired,consult acompetentprofessional. If youarea Buyer,you havetheduty toexercise reasonablecare toprotectyourself, includingas tothose factsaboutthe propertywhich areknown toyouor withinyour diligent aƩenƟonand observaƟon. BothSellersand Buyersshould strongly considerobtaining taxadvice fromacompetent professionalbecause thefederal andstatetax consequencesof a transacƟoncan becomplex andsubjectto change.
Throughoutyour realproperty transacƟonyoumay receivemore thanone disclosureform,depending uponthe numberofagents assisƟngin the transacƟon. The lawrequires eachagent withwhomyou havemore thana casual relaƟonshipto presentyou withthisdisclosure form. Youshouldread itscontents each Ɵme itis presentedto you,considering the relaƟonshipbetween youand thereal estateagentin your specific transacƟon. This disclosureform includestheprovisions of SecƟons2079.13 to2079.24, inclusive,ofthe CivilCode setforth onpage2. Readit carefully. I/WE ACKNOWLEDGERECEIPT OFACOPY OFTHIS DISCLOSUREAND THEPORTIONS OFTHE CIVILCODEPRINTED ONTHE BACK(OR ASEPARATEPAGE).
Buyer Seller Lessor Lessee Date:
Buyer Seller Lessor Lessee Date:
Agent: Allied Commercial Real Estate, Inc. DRELic.#: 01519318 Real EstateBroker (Firm)
By: DRELic. #: 01301532/01151111 Date:
(Salespersonor Broker-Associate)
THISFORM HASBEEN PREPAREDBYAIR CRE. NOREPRESENTATIONISMADEAS TOTHE LEGALVALIDITYOR ADEQUACYOF THISFORMFOR ANYSPECIFIC TRANSACTION. PLEASESEEK LEGALCOUNSELAS TOTHE APPROPRIATENESSOF THISFORM.
Docusign Envelope ID: 0A22AEC4-BD64-4AC5-99A3-A58A8D2D81A4 7/30/2025Matthew C. Ballantyne
Steven D. Roppel
Tony M Guglielmo
7/30/2025
________ ________
________ ________
INITIALS INITIALS
©2019AIRCRE. AllRightsReserved. LastEdited:7/25/202511:56AM AD-3.01,Revised10-22-2020 Page2 of2
DISCLOSUREREGARDINGREALESTATEAGENCYRELATIONSHIP
CIVILCODESECTIONS2079.13THROUGH2079.24(2079.16APPEARSONTHEFRONT) 2079.13.As usedin SecƟons2079.7and 2079.14to 2079.24,inclusive, thefollowingterms havethe followingmeanings:
(a) “Agent”means aperson acƟng underprovisions ofTitle 9 (commencingwith SecƟon 2295)in areal property transacƟon,and includesa person whois licensedas a realestate broker underChapter 3 (commencing with SecƟon 10130) ofPart 1 ofDivision 4 ofthe Business and ProfessionsCode, and underwhose license a lisƟng is executed or an offerto purchase is obtained. The agent in the real property transacƟon bears responsibility for that agent’ssalespersons or brokerassociates who perform asagents ofthe agent.When asalesperson orbroker associateowes aduty toany principal,or toany buyeror sellerwho isnot aprincipal, ina realproperty transacƟon, that duty is equivalent to the duty owed to that party by the broker for whom the salesperson or broker associate funcƟons. (b) “Buyer”means a transfereein a real property transacƟon, and includes a person who executesan offer to purchase real property from a seller through an agent, or who seeks the services of anagent in more thana casual, transitory,orpreliminary manner,with theobject of entering intoa real property transacƟon.“Buyer”includes vendee or lessee of real property.(c) “Commercialreal property”means all realproperty in the state, except (1) single-family residenƟal real property,(2) dwelling units made subject to Chapter 2 (commencing with SecƟon 1940) of Title 5, (3) a mobile home, as defined in SecƟon 798.3, (4) vacant land, or (5) a recreaƟonal vehicle, as defined in SecƟon 799.29. (d) “Dualagent”means an agent acƟng, either directly or through a salesperson or broker associate, as agent for both the seller and the buyer in a real property transacƟon. (e) “LisƟng agreement”means a wriƩen contract between a seller of real property and an agent, by which the agent has been authorized to sell thereal property or to find orobtain a buyer,including rendering other servicesfor which a real estatelicense isrequired to the seller pursuant to the terms of theagreement. (f) “Seller'sagent”means a personwho has obtained a lisƟng of real propertyto act as an agent for compensaƟon.(g) “LisƟng price”is the amount expressed in dollars specified in the lisƟng for which the seller is willing to sell the real property through the seller’sagent. (h) “Offering price”is the amount expressed in dollars specifiedin an offer to purchase for which thebuyer is willing to buy the real property.(i) “Offer to purchase”means a wriƩen contract executed by a buyer acƟng through a buyer’sagent that becomes the contract for the sale of the real property upon acceptance by the seller. (j) “Realproperty” means any estate specified by subdivision (1) or (2) of SecƟon 761 in property,and includes (1) single-family residenƟal property,(2) mulƟ-unit residenƟal property with more than four dwelling units, (3) commercial real property,(4) vacant land, (5) a ground lease coupled with improvements, or (6) a manufactured home as defined in SecƟon 18007 of the Health and Safety Code, or a mobile home as defined in SecƟon 18008 of the Health and Safety Code, when offered for sale or sold throughan agentpursuant tothe authoritycontainedin SecƟon10131.6 oftheBusiness andProfessions Code.(k) “Realproperty transacƟon” meansa transacƟonfor the sale of real property in which an agent is retained by a buyer, seller,or both a buyer and seller to act in that transacƟon, and includes a lisƟng or an offer to purchase. (l) “Sell,”“sale,”or “sold”refers to a transacƟon for the transfer of real property from the seller to the buyer and includes exchanges of real property between theseller andbuyer, transacƟons forthe creaƟonof a realproperty salescontract within themeaning of SecƟon 2985, and transacƟons forthe creaƟon ofa leasehold exceedingone year’sduraƟon. (m) “Seller”means thetransferorina real propertytransacƟon andincludes an ownerwho listsreal property withan agent, whether or not a transfer results, or who receives an offer to purchase real property of which he or she is the owner from an agent on behalf of another. “Seller” includesboth avendor andalessor ofreal property.(n) “Buyer'sagent”means anagent whorepresentsa buyerin arealproperty transacƟon. 2079.14. A seller’sagent and buyer’sagent shall provide the seller and buyer in a real property transacƟon with a copy of the disclosure form specified in SecƟon 2079.16, and shall obtain a signed acknowledgment of receipt from that seller and buyer,except as provided in SecƟon 2079.15, as follows: (a) The seller’sagent, if any,shallprovide the disclosure formto the seller priorto entering into the lisƟng agreement. (b) Thebuyer’sagent shall providethe disclosure form tothe buyer as soonas pracƟcableprior to execuƟon ofthe buyer’sofferto purchase.If the offer topurchase isnotprepared bythe buyer’sagent, thebuyer’sagentshall presentthe disclosureform tothe buyernotlater thanthe nextbusiness day aŌerreceiving the offer topurchasefrom thebuyer. 2079.15. In any circumstance in which the seller or buyer refuses to sign an acknowledgment of receipt pursuant to SecƟon 2079.14, the agent shall set forth, sign, anddate a wriƩen declaraƟonofthe factsof therefusal.
2079.16 Reproducedon Page1 ofthis ADform.
2079.17(a) As soon as pracƟcable, the buyer’sagent shall disclose to thebuyer and seller whether the agent is acƟng in the real property transacƟon as the buyer’s agent, or as a dual agent represenƟng both the buyer and the seller.This relaƟonship shall be confirmed in the contract to purchase and sell real property or in a separate wriƟngexecuted or acknowledged bythe seller,the buyer,and the buyer’sagentprior to or coincidentwith execuƟon of thatcontract by the buyerand the seller, respecƟvely. (b) As soon as pracƟcable, the seller’sagent shall disclose to the seller whether the seller’sagent is acƟng in the real property transacƟonas the seller’sagent, oras a dual agent represenƟng both the buyer andseller.This relaƟonship shallbe confirmed in the contractto purchase and sellreal property or in a separate wriƟng executedor acknowledgedbythe sellerand theseller’sagentpriorto orcoincident withthe execuƟon ofthat contractbythe seller. (C)CONFIRMATION: Thefollowing agency relaƟonshipsare confirmedfor this transacƟon.
Seller'sBrokerageFirm DONOTCOMPLETE,SAMPLEONLY LicenseNumber Isthebrokerof(checkone): theseller; or boththebuyerandseller.(dualagent) Seller'sAgent DONOTCOMPLETE,SAMPLEONLY LicenseNumber
Is(checkone): theSeller'sAgent.(salespersonorbrokerassociate);or boththeBuyer'sAgentandtheSeller'sAgent. (dualagent) Buyer'sBrokerageFirm DONOTCOMPLETE,SAMPLEONLY LicenseNumber Isthebrokerof(checkone): thebuyer; or boththebuyerandseller.(dualagent) Buyer'sAgent DONOTCOMPLETE,SAMPLEONLY LicenseNumber
Is(checkone): theBuyer'sAgent.(salespersonorbrokerassociate);or boththeBuyer'sAgentandtheSeller'sAgent. (dualagent) (d)The disclosuresand confirmaƟonrequiredby this secƟon shallbe in addiƟonto thedisclosure requiredby SecƟon 2079.14.An agent’sdutyto providedisclosure and confirmaƟon of representaƟon inthis secƟon maybe performedby arealestatesalespersonor brokerassociate affiliated withthat broker. 2079.18(Repealed pursuantto AB-1289,2017-18California LegislaƟvesession) 2079.19The paymentof compensaƟonorthe obligaƟonto pay compensaƟon toanagent bythe sellerorbuyer isnot necessarily determinaƟveof a parƟcular agency relaƟonshipbetween anagent andtheseller orbuyer.A lisƟng agentanda sellingagent mayagreeto shareany compensaƟonorcommission paid,or anyright toany compensaƟonor commissionfor whichan obligaƟon arisesas theresult ofareal estate transacƟon, andtheterms ofany suchagreementshall notnecessarily be determinaƟveof a parƟcular relaƟonship.
2079.20Nothing inthis arƟclepreventsan agentfrom selecƟng,as a condiƟonof theagent’semployment,a specific formof agency relaƟonshipnot specifically prohibitedby this arƟcle iftherequirements of SecƟon 2079.14and SecƟon2079.17are compliedwith. 2079.21(a) Adual agentmaynot, withoutthe expresspermission oftheseller,discloseto thebuyerany confidenƟal informaƟon obtainedfromthe seller.(b) Adual agentmay not,without theexpresspermission ofthe buyer,disclose totheseller any confidenƟal informaƟonobtainedfrom thebuyer.(c) “ConfidenƟal informaƟon” meansfacts relaƟngto theclient’sfinancial posiƟon, moƟvaƟons, bargaining posiƟon, orotherpersonal informaƟonthat mayimpactprice, suchas theselleris willing toaccept aprice lessthanthe lisƟngprice orthe buyeriswilling topay apricegreater thanthe price offered.(d) This secƟon doesnot alterinany waythe dutyor responsibilityof adual agenttoany principalwith respectto confidenƟal informaƟonother thanprice. 2079.22Nothing inthis arƟcleprecludesa seller’sagent fromalso beingabuyer’sagent.If aselleror buyerin a transacƟonchooses tonot berepresented byan agent,that doesnot, ofitself,make thatagent adual agent. 2079.23(a) Acontract betweentheprincipal andagent maybe modifiedoraltered tochange theagency relaƟonship atany Ɵmebeforethe performanceof theact whichis theobject oftheagency withthe wriƩenconsent ofthe parƟes tothe agency relaƟonship. (b)A lenderoran aucƟoncompany retainedby alenderto controlaspects ofa transacƟonofreal propertysubject tothis part,including validaƟng thesales price,shallnot require,as a condiƟonof receivingthe lender’s approvalof the transacƟon, thehomeowneror lisƟngagent todefend orindemnifythe lenderor aucƟoncompanyfrom anyliability allegedtoresult fromthe acƟons ofthe lenderor aucƟoncompany.Any clause,provision, covenant,or agreement purporƟngto imposean obligaƟontodefend orindemnify alenderor an aucƟon companyin violaƟonof thissubdivisionis againstpublic policy,void, andunenforceable. 2079.24Nothing inthis arƟcleshallbe construedto eitherdiminish thedutyof disclosureowed buyersandsellers byagents andtheirassociate licensees,subagents, andemployees orto relieveagentsand theirassociate licensees,subagents, andemployeesfrom liabilityfor theirconductin connecƟonwith actsgovernedby this arƟcleor forany breachofa fiduciaryduty ora dutyofdisclosure.
AIRCRE * hƩps://www.aircre.com * 213-687-8777 * [email protected] NOTICE: Nopart oftheseworks maybe reproducedin anyformwithout permissionin wriƟng.
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16498.10022\44003626.1
ADDENDUM TO THE AIR COMMERCIAL REAL ESTATE ASSOCIATION
STANDARD OFFER, AGREEMENT AND ESCROW INSTRUCTIONS FOR
PURCHASE OF REAL ESTATE
THIS ADDENDUM supplements and to the extent of any inconsistency , supersedes the provisions of that certain “AIR Commercial Real Estate Association Standard Offer, Agreement and Escrow Instructions For Purchase of Real Estate” between the undersigned Buyer and Seller dated as of July 16, 2025, as follows:
The AIR Commercial Real Estate Association Standard Offer and Addendum shall be effective as of the date, following all legally required notices and hearings, this Agreement has been approved by Buyer’s governing body or its delegated representative and signed by all Parties 9(H) Contingencies to Closing: As a condition precedent to Close of Escrow, and no later than one (1) hour prior to the scheduled closing time, Seller shall deliver to all tenants of the Property written notice of the pending sale to Buyer, in a form reasonably acceptable to Buyer.
Seller shall also obtain written confirmation from each tenant of their agreement to enter into a new lease with Buyer, with such new leases to be executed immediately following Close of Escrow. The satisfaction of these requirements shall be a condition to Buyer’s obligation to close.
Buyer may waive any such condition in writing at its sole discretion.
11.1 Property Taxes and Assessments : Buyer is a public agency and is exempt from payment of real property taxes. Prior to Close of Escrow, Escrow Holder and the Title Company will confirm with San Bernardino County that no escaped assessments or other property tax liabilities of any type affect the Property Interest. In the event any such liabilities do exist, Seller authorizes the satisfaction of such liabilities from funds otherwise payabl e to Seller at Close of Escrow. Following Close of Escrow, if, n otwithstanding the above provisions, Buyer or the Property Interest become subject to any real property tax liability for a period prior to Close of Escrow, Seller will satisfy such obligation to the taxing authority within thirty (30) days following notification of such liability from Buyer or the taxing authority. If Seller defaults in such obligation and Buyer elects to pay any such tax liability, Seller will reimburse such costs to Buyer within thirty (30) days following receipt of a written demand therefor from Buyer, together with interest on such amount from the date of payment by Buyer at the highest legal rate.
12.1(c) Hazardous Materials: To Seller’s knowledge, except for that certain Notice of Violation from San Bernardino County Fire Department, dated March 3, 2025 which has been remedied and is no longer an active violation. Seller has not received any written notice of violation issued pursuant to any Environmental Law with respect to the Property or any use or condition thereof.
IN WITNESS WHEREOF, the parties hereto have executed this Addendum to AIR Commercial Real Estate Association Standard Offer, Agreement and Escrow Instruction s For Purchase of Real Estate deemed effective as of the date first written above.
BUYER:
City of Fontana, a California municipal corporation
Matthew C. Ballantyne, City Manager
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16498.10022\44003626.1
2 SELLER:
Landexcorp, LLC, a California limited liability company Steven Landis, Managing Member
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3 EXHIBIT ‘A’
Tenant Estoppel
TENANT ESTOPPEL CERTIFICATE
The undersigned, ____________________________________ (“Tenant”) hereby certifies to CITY OF FONTANA, a California municipal corporation (“City/Landlord”), as follows:
Attached hereto is a true, correct and complete copy of that certain lease dated ______,___2025, as amended, between CITY OF FONTANA a California municipal corporation (“Landlord”), and Tenant (collectively, the “Lease”), the demised premises of which (“Premises”) are located at 16641 and 16643 Orange Way, Fontana , County of San Bernardino, as are more particularly described in the Lease.
The Lease (as attached) represents the entire agreement between the parties as to the Premises (including without limitation, all leasehold rights and any purchase option or rights of first refusal of Tenant with respect to the Premises), is now in full fo rce and effect, and has not been further amended, modified or supplemented.
The term of the Lease commenced on ________,____, 2025.
The undersigned currently occupies the Premises.
The current term of the Lease will expire on ______,____,_____.
Tenant has two options to extend the current term for an additional period of (____) years each.
All conditions of the Lease to be performed by Landlord thereunder and necessary to the enforceability of the Lease have been satisfied.
The amount of the base monthly rent is currently $____________.
Tenant is paying the full rental under the Lease, which rental has been paid in full as of the date hereof. No rental under the Lease has been paid for more than thirty (30) days in advance of its due date.
Tenant has no right to any concession (rental or otherwise) or similar compensation in connection with renting the space it occupies, except as provided in the Lease.
To the best of Tenant’s knowledge, there are no defaults on the part of Landlord under the Lease, and there are no events currently existing (or with the passage of time, giving of notice or both, which would exist) which give Tenant the right to cancel or terminate the Lease.
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4 To the best of Tenant’s knowledge, Tenant has no defense as to its obligations under the Lease and has no claims, offsets or counterclaims against Landlord.
All provisions of the Lease and the amendments thereto (if any) referred to above are hereby ratified.
Dated: , 2025
Tenant:
______________________________
By: ___________________________
Name: _________________________
Title: __________________________
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5 EXHIBIT “B”
LEASE
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