AGREEMENT
FOR
PURCHASE
AND
SALE
OF
REAL
ESTATE
(AND
JOINT
ESCROW
iNSTRUCTIONS)
betwcen
PACIFIC
COAST
HOMES,
aCalifornia
corporation
and
THE
CiTY
OF
FULLERTON,
aCalifornia
municipal
corporation
48235475-9323.v1
7 TABLEOFCONTENTS
Page
1.PurchaseandSale.2
2.Price/SimultaneousAcquisition2
3.PaymentofPurchasePrice
3 4.NaturalHazardsDisclosure4
5.RemedialActionPlan/OptiontoExtendClosingDate
4 6.InspectionsPriortoContingencyDate4
7.Due-DiligenecPriortoContingencyDate6
8.ConditionofTitle
7 9.Seller’sRepresentations,WarrantiesandCovenants
7 10.Buyer’sRepresentations,WarrantiesandCovenants9
[1.Escrow10
12.ConditionstotheCloseofEscrow
11 13.DisclaimerofRepresentationsorWarranties
bySeller16
14.DeliveriestoEscrowHolder19
15.ClosingCostsandExpenses21
16.Prorations
22 17.lscrowClosingProcedures
22 18.PossessionatCloseofEscrow
23 19.PurchaseofNeighborhoodIAlone
23 20.Post-ClosingObligations
23 21.Condemnation
26 22.Casualty26
23.Notices
26 24.NoBrokers
28 25.FurtherActions28
26.LegalandEquitableEnforcementofthisAgreement
28 27.Assignment
29 28.GoverningLawandResolutionofDisputes
29 29.Miscellaneous
31 4823-5475-9323.I7
EXHIBITS
ExhibitA—FormofDeedwithRealPropertyDescription,CovenantsandRestrictions ExhibitB—FormofLicenseAgreement
11 4823-5475-9323.vl7
AGREEMENTFOR
PURCHASEANDSALEOFREALESTATE
(ANDJOINTESCROWINSTRUCTIONS)
TFIISAGREEMENTFORPURCHASEANDSALEOFREALESTATE(ANDJOfNT
ESCROWiNSTRUCTIONS)(“Agreement”)ismadeandenteredintoasoftheEffectiveT)ate, byandbetweenPACIFICCOASTHOMES,aCaliforniacorporation(“Seller”),andTHE CITYOFFULLERTON,aCaliforniamunicipalcorporation(“Buyer”or““)(each,a “Par”andcollectively,“theParties”)onthefollowingtermsandconditions.
RECITALS:
a.SellerownscertainrealpropertyintheCityofFullerton,commonlyknownastheWest CoyoteHillsProjectSite(“ProjectSite”).UnderMaster(Specific)PlanMSP2-A,as amended,andVestingTentativeTractMapNo.17609(“VTTMNo.17609”),theProject Siteincludesnine(9)plairningareasidentifiedasneighborhoods(“Nei2hborhoods”).
TheportionsoftheProjectSitedesignatedasNeighborhoodIandNeighborhood3 (collectively,the“RealPropert“)arethesubjectofthisAgreement.Theremainderof theProjectSiteshallmeanthe“RemainderProperE’.”
b.VTTMNo.17609forthe\VestCoyoteHillsdevelopmentproject(“Project”)was approvedbytheFullertonCityCouncilonNovember17,2015,pursuanttoResolution No.2015-62,subjecttoConditionsofApproval(“ConditionsofApproval”).The ConditionsofApprovalincludedanoptionforpotentialacquisitionbytheBuyerofthe RealPropertysolelyforpennanentdeed-restrictedopen-space/parkresource conservationpurposes,includinghabitatpreservationandrelatedrecreationaluses, c.PursuanttoVTTMNo.17609andtheConditionsofApproval,onMay17,2016,Buyer deliveredtoSelleraNoticeofAcquisitiontopurchasetheRealProperty(Neighborhood IandNeighborhood3together).However,becausetheFinalApprovalDateforthe Project(asdefinedintheConditionsofApproval)didnotoccurwithinthree(3)yearsof theCity’sactionapprovingVTTMNo.17609,theCity’snoticebecameineffective.The BuyerstillretainedarighttogivenoticetoacquireNeighborhood1standingalone. d.OnMarch29,2019,BuyerdeliveredatimelynoticetoSellerofBuyer’sintenttoacquire Neighborhood1undertheConditionsofApproval.Inaddition,sincetheSeller continuestobewillingtosellNeighborhood3togetherwithNeighborhood1,Buyer seekstoacquiretheentireRealProperty.
e.OnJanuary8,2020,theCityapprovedathree-yearextensionofVTTMNo.17609to December7,2023.
f.SellerandBuyernowdesiretoenterintothisAgreementonspecifiedtermsand conditionsforpublicacquisitionoftheRealPropertyonthetermsandconditions providedherein.
4823-5475-9323.v17
g.CapitalizedtermsusedhereinshallhavethemeaningsetforthintheGlossaryofTerms attachedhereto,orifnodefinitionissetforthintheGlossaryofTerms,suchcapitalized tennsshallhavethemeaningimmediatelyfollowingorprecedingtheuseofsuchterms.
IfnototherwisedefinedinthisAgreement,capitalizedtennsshallhavethemeaning ascribedtheretointheConditionsofApproval.
inconsiderationofthemutualcovenantssetforthherein,andforothergoodandvaluable consideration,thereceiptandsufficiencyofwhichareherebyacknowledged,thePartiesagreeas follows:
1.PurchaseandSale.SelleragreestosellandBuyeragreestopurchasetheRealProperty onthetermsandconditionssetforthinthisAgreement.
2.Price/SimultaneousAcquisition.Thepurchaseprice(“PurchasePrice”)fortheReal PropertyisEighteenMillionSeventy-FiveTliousandDollars($18,075,000),consistingofSeven MillionEightHundredThousandDollars($7,800,000)forNeighborhood1,andTenMillion TwoHundredSeventy-FiveThousandDollars($10,275,000)forNeighborhood3;providedthat thePurchasePricefortheRealProperty(orforNeighborhoodIstandingalone)shallbereduced atClosingforthecostdifference,ifany,betweentheestimatedcostofrernediatingtheReal PropertyforopenspaceusesandtheestimatedcostofremediatingtheRealPropertyfor residentialuses(the“PriceAdjustment”),pursuanttothefollowingprocedures:(i)Sellershall furnishtoBuyeranyRemedialActionPlans(“RAPs”)requiredfortheRealPropertyunder VTTMNo.17609togetherwithacostdifferencereport(“CostDifferenceReport”)thatshall includethefollowing(a)theestimatedopen-spacerernediationcosts,ifany,(b)theremediation standardsandestimatedcostsofrernediationforresidentialuse,and(c)thecalculateddifference betweenopenspacercmediationcosts,ifany,andresidentialremediationcosts;(ii)theBuyer shallreviewtheRAPs(ifany)andtheCostDifferenceReport,andgivenoticeofitsagreement ordisagreementtoSellernolaterthanten(10)daysfollowingBuyer’sreceipt;and(iii)inthe eventofdisagreementoverthePriceAdjustment,themattershallbesubmittedtoanddecidedby amutuallyagreedthird-partyexpert(pre-selectedbytheParties)withinten(10)daysofBuyer’s notice;andprovidedfurtherthatSellershallretaintherightinitssolediscretiontoterminatethe saleifthePriceAdjustmentwouldbegreaterthan3%ofthePurchasePrice.Consistentwith Buyer’sintenttousetheRealPropertyforopenspacepurposes,thePartiesacknowledgethat anyRAPsrequiredfortheRealPropertywilladdressremediationnecessaryforopenspaceuses only,andagreethatnodraftorapprovedRAPsforresidentialremediationshallbenecessaryfor purposesofcalculatingthePriceAdjustment.IntheeventthatanyRAPsrequiredfortheReal PropertyarcnotavailablepriortoClosingunderthescheduleprovidedinParagraph5,Closing shallproceedonthesameschedulethereinandthePriceAdjustmentshallbemadepost-Closing, accordingtothesameprocedureprovidedabove,assoonasreasonablyfeasibleafterClosing, butsubjecttoSelleratCloseofEscrowprovidingperformancesecurityforthePriceAdjustment inaccordancewithParagraph14(a)(vi).BuyermaypurchaseNeighborhood3onlyifBuyer purchasesNeighborhood1simultaneouslyinthesametransaction.IntheeventBuyercannot timelysecurefundingforpurchaseofbothNeighborhood1andNeighborhood3together,or otherwisedecidesnottopurchaseNeighborhood3,Buyerinitssolediscretionmayproceedwith thepurchaseofNeighborhoodIaloneatthepricesetforthinthisParagraph2,onthesame tennsandconditionssetforthhereinforthepurchaseoftheRealProperty,exceptasmodified hereinforthepurchaseandsaleofNeighborhood1alone.
2 4823-5475-9323.vl7
3. Pament
of
Purchase
Price.
The
Purchase
Price
shall
be
paid
as
follows:
(a)
Deposit.
Buyer
shall
deliver
to
Escrow
Holder
by
Cash
Equivalent
adeposit
of
One
Hundred
Thousand
Dollars
($100,000)
within
three
(3)
Business
Days
after
the
Effective
Date,
which
amount
and
all
interest,
if’
any,
accrued
thereon
(the
“Deposit”)
shall
be
creditable
to
the
Purchase
Price
and
subject
to
the
Liquidated
Damages
provisions
of
this
Agreement
from
and
after
the
Contingency
Date.
Escrow
Holder
shall
hold
the
Deposit
in
an
interest-bearing
federally
insured
account
with
interest
accruing
for
the
benefit
of
Buyer;
provided,
however,
that
Buyer
and
Seller
may
waive
the
requirement
that
the
account
be
interest-hearing
if
they
determine
that
the
cost
for
establishing
and
maintaining
an
interest-bearing
account
exceeds
any
anticipated
interest
earnings.
For
the
avoidance
of
doubt,
the
Parties
agree
that
if
this
Agreement
is
terminated,
for
any
reason,
prior
to
the
Contingency
Date,
Buyer
shall
be
entitled
to
the
return
of
the
Deposit.(b)
Fundin
for
Buer’s
Acquisition.
The
Parties
understand
and
acknowledge
that,
as
of
the
Effective
Date,
Buyer
does
not
have
immediately
available
funds
to
acquire
the
Real
Property
for
the
Purchase
Price
and
is
seeking
grant
funding
outside
of
the
City
of
Fullerton.
Buyer
shall
have
the
right
to
terminate
this
Agreement
by
delivering
written
notice
to
Seller
as
soon
as
possible,
but
in
any
event
no
later
than
the
Contingency
Date,
if
Buyer
determines
that
funding
will
not
be
available
to
acquire
the
Real
Property.
If
Buyer
elects
not
to
terminate
this
Agreement
and
to
proceed
with
the
purchase
of
Neighborhood
1alone,
as
permitted
hereunder,
Buyer
shall
give
written
notice
(“Neighborhood
1Notice”)
of
said
election
to
Seller
as
soon
as
possible,
and
in
any
event
no
later
than
the
Contingency
Date.
(c)
Balance
of
Purchase
Price.
Subject
to
the
possible
escrow
withholding
account
to
be
established
in
accordance
with
Paragraph
14(a)(vi)
below,
no
later
than
one
(I)
Business
Day
prior
to
the
Closing
Date,
Buyer
shall
deposit
into
Escrow
by
Cash
Equivalent
the
remainder
of
the
Purchase
Price
for
the
Real
Property,
or
for
Neighborhood
1,
as
the
case
may
be,
together
with
Buyer’s
share
of
closing
costs,
adjusted
by
prorations
as
provided
herein.
(d)
Independent
Contract
Consideration.
Within
two
(2)
Business
Days
after
the
Effective
Date,
Buyer
shall
deliver
to
Seller,
outside
of
Escrow,
the
amount
of
One
Hundred
Dollars
(S
100)
(the
“Independent
Contract
Consideration”),
which
Seller
and
Buyer
agree,
together
with
Buyer’s
anticipated
due
diligence
expenditures,
has
been
bargained
for
as
consideration
for
Seller’s
execution
and
delivery
of
this
Agreement
and
affording
Buyer
the
right
to
purchase
the
Real
Property
as
set
forth
herein.
The
Independent
Contract
Consideration
is
in
addition
to,
and
independent
of,
the
Purchase
Price
and
any
other
consideration
or
payment
provided
for
in
this
Agreement,
and
is
nonrefundable
in
all
events.
(e)
Liquidated
Damacs.
SELLER
AND
BUYER
AGREE
THAT,
IF
THE
PURCHASE
AND
SALE
OF
THE
REAL
PROPERTY
IS
NOT
COMPLETED
IN
ACCORDANCE
WITH
THIS
AGREEMENT
BECAUSE
BUYER
DEFAULTS
UNDER
OR
BREACHES
THIS
AGREEMENT,
SELLER
SHALL
BE
ENTITLED
TO
TERMiNATE
THIS
AGREEMENT,
AND
IF
SUCH
TERMINATION
OCCURS
AFTER
THE
CONTTNGENCY
DATE.
THEN
UPON
TERMTh.IATION
THE
DEPOSIT
SHALL
BE
PAID
TO
SELLER
AS
LIQUIDATED
DAMAGES
AND
AS
SELLER’S
SOLE
REMEDY.
SELLER
AND
BUYER
AGREE
THAT,
UNDER
THE
CIRCUMSTANCES
EXISTING
AS
OF
THE
EFFECTIVE
3 4823-5475-9323vl7
DATE.
ACTUAL
DAMAGESMAYBE
DIFFICULT
TO
ASCERTAIN
AND
THE
DEPOSIT
IS
A
REASONABLE
ESTIMATE
OF
THE
DAMAGES
THAT
WILL
BE
INCURRED
BY
SELLER
IF
BUYER
DEFAULTS
UNDER
OR
BREACHES
THiS
AGREEMENT
AND
FAILS
TO
PURCHASE
THE
REAL
PROPERTY
(EITHER
NEIGHBORHOODS
I
AND
3 TOGETHER,
OR
NEIGHBORHOOD
1 ALONE)
TN
ACCORDANCE
WITH
THIS
AGREEMENT.
SELLER’S
INITlALS:—
BUYER’S
fNTTIALS:
4.NaturalHazardsDisclosure.
Seller
shall,
no
later
than
ten
(10)
days
prior
to
the
Contingency
Date,
deliver
or
cause
to
be
delivered
to
Buyer,aNatural
Hazard
Disclosure
Report
(“DisclosureReport”)forthe
Real
Property
pursuant
to
the
applicable
DisclosureStatutes.As
usedinthisAgreement,“DisclosureStatutes”means,collectively,CaliforniaGovcrnmentCode §8589.3,
8589.4
and
51183.5,
California
Public
Resources
Code
§262l.9,
2694
and
4136.
With
respect
to
the
Disclosure
Statutes
and
the
Disclosure
Report,
and
consistent
with
California
Civil
Code
§1102.4,
the
(a)
delivery
of
the
Disclosure
Report
to
Buyer
shall
be
deemed
to
satisfy
all
obligations
and
requirements
of
Seller
under
the
Disclosure
Statutes;
(b)
Seller
shall
not
be
liable
for
any
error
or
inaccuracy
in,
or
omission
from,
the
information
in
the
Disclosure
Report;
and
(c)
the
Disclosure
Report
is
being
provided
by
Seller
for
purposes
of
complying
with
the
Disclosure
Statutes
and
shall
not
be
deemed
to
constitute
arepresentation
orwarranty
by
Seller
as
to
the
presence
or
absence
in,
at
or
around
the
Real
Property
of
the
conditions
that
arc
the
subject
of
the
Disclosure
Statutes.
Buyer
acknowledgesthat
the
Real
Property
is
located
in
the
vicinityofanairport,withinwhatisknownasanairportinfluencearea,asstaledinthe Conditions
of
Approval.
5.RemedialActionPlans/C1osinDate.
Buycr
represents
thatif
anyRAPs
arc
required
forthe
RealProperty,
Buyer
must
provide
such
RAPs
as
approved
by
the
relevant
environmental
agencies(“Approved
RAPs”)
to
Slate
funding
agencies
that
are
providinggrant
ftmding
to
be
used
by
Buyer,
in
part,
to
purchase
the
Real
Property.
Seller
will
submit
all
necessary
applications
to
the
relevant
environmental
agencies
to
obtain
any
RAPs
that
may
be
required,
promptly
provide
copies
of
said
final
applications
to
Buyer,
and
use
its
best
effort
to
obtain
and
provide
Approved
RAPs
to
Buyer
prior
to
October15,
2020,
but
makes
no
promises,
representations
or
warranties
regarding
the
approval
of
any
RAPs
andior
the
timing
or
the
conditions
thereof.
Closing
hereunder
shall
occur
no
later
than
December
19,
2020,
provided
that
in
the
event
ApprovedRAPsarc
not
available
prior
to
Closing,
the
Closing
shall
be
subject
to
Seller,
at
Close
of
Escrow,
providing
performance
security
sufficient
to
Buyer
for
(a)
the
Price
Adjustment
required
under
Paragraphs
2and
14(a)(vi)
herein,
and
(b)
and
any
rernedialion
obligations
pursuant
to
paragraph
l4(a)(vii)
and
VTTM
No.
17609.
6.InspectionsPriortoContinencvDate.
a)
On
or
before
the
Contingency
Date,
Buyer
shall
have
performedany
inspections,
investigations,
tests
or
studies
(collectively,
the“Inspections”)
which
Buyer
desires
to
perfonn
for
the
purpose
of
determining
whether
or
not
Buyer
will
proceedwith
the
purchase
of
the
Real
Property
and
shall
have
approved
and
accepted
same.
To
perform
any
Inspections,
Buyer
and
its
agents,
contractors
and
representatives
shall
have
access
to
the
Real
Property,
provided
that:
(I)
any
Inspection
shall
not
interfere
withany
work
undertaken
to
comply
with
the
Conditions
of
4 4823-5475-923.v17
ApprovalandmitigationmeasuresfortheProject;(2)Buyermustprovideadraftworkplanthat describestheproposedinvasiveInspectionstoSellerforSeller’sreasonableapprovalatleastten (10)BusinessDaysbeforeaccessingtheRealProperty;(3)BuyermustgiveSelleratleastfive (5)BusinessDays’noticeofanyInspectionwhichrequiresaccesstotheRealProperty,andwith respecttoanyinvasiveInspection(includinganyso-called“Phase11”testing),Buyermustobtain Scllcr’spriorwrittenconsent,whichconsentshallnotbeunreasonablywithheld,conditionedor delayed;(4)priortoperforminganyInspections,Buyermustdeliverevidenceofinsurance (whichmaybeacertificateofinsurance)toSellerconfirmingthatBuyeranditscontractors, agentsandrepresentativeswhowillbeconductingsuchInspectionshaveineffecttheinsurance describedinParagraph6(e);and(5)allsuchInspectionsshallheconductedbyBuyerin compliancewiththisParagraph6.Sellershallhavetherighttohavearepresentativepresent withrespecttoanyInspectionsconductedontheRealProperty.
(b)InconductingtheInspections,Buyeranditsagents,contractorsand representativesshall;(1)complywithallapplicableGovernmentalRegulations;(2)promptly paywhendueallcostsoftheInspections;(3)notpermitanylienstoattachtotheRealProperly byreasonoftheInspections(ortoimmediatelypayofforbondaroundanysuchlienswhichmay befiled);and(4)promptlyrepairaiidrestoreanyareasoftheRealPropertywhicharedisturbed ordamagedasaresultofanyInspections,substantiallytotheconditionwhichexistedpriorto theInspections.
(c)Tothefullestextentpermittedbylaw,Buyershallkeepconfidentialthe infonnationresultingfromtheInspections.BuyershalldelivertoSellercopiesofallreports, surveysandstudiesgeneratedbytheInspections.Buyermaydiscloseconfidentialinformation toBuyer’srepresentativesandtoStatefundingagenciestotheextenteachneedstoknow confidentialinformationforthesolepurposeofevaluatingtheRealProperty,providedBuyer takesallreasonablemeasurestoassurethat,tothefullestextentpermittedbylaw,Buyer’s representativeskeepsuchinformationconfidential.Buyershallnotcontactanygovernmental authorityapartfromaStatefundingagencyregardingtheresultsofanytestingperformedonthe RealPropertyunlessrequiredbylawand,ifpermittedbylaw,onlyafterBuyerhasgivenSeller notlessthanseven(7)days’writtennoticepriortoanysuchcontact. (d)Buyerherebyindemnifics,protects,defendsandholdstheSellerIndemnified PartiesharmlessfromallClaimsarisingoutofanyentryontotheRealPropertyby,orany InspectionsperformedbyBuyer,itsagents,contractorsorrepresentatives.Buyerwaivesand releasesanyClaimsorotherremediesofanykindwhatsoeveragainsttheSellerIndemnified Partiesforpropertydamagesorbodilyand/orpersonalinjuriestoBuyer,itsagents,contractors, andrepresentativesarisingoutofanyentryontotheRealPropertyby,oranyInspections performedbysaidPersons,excepttotheextentanysuchClaimsorotherremediesarisefromthe negligenceorwillfulmisconductofoneoftheSellerIndenmifiedParties.Theprovisionsofthis Paragraph6(d)areSurvivingObligations.
(e)insurance.BeforeenteringtheRealPropertyforanyInspection,Buyershall procureandmaintain,atitsownexpense,duringtheperformanceofitsobligationsunderthis Agreement,policiesofliabilityinsuranceintheStateofCaliforniareasonablyacceptableto Seller,whichareprimaryastoanyotherexisting,validandcollectibleinsuranceinsuringBuyer 5 4823-5475-9323.17
agaiistlossorliabilitycausedbyorinconnectionwiththeperformanceofthisAgreementby Buyer,oritsagents,consultants,contractorsorsubcontractors,inamountsnotlessthan:
(i)CommercialGeneralLiabilityInsurancewithaminimumcombinedsingle limitofliabilityofatleastOneMillionDollars($1,000,000)andageneralaggregate limitofTwoMillionDollars($2,000,000).
(ii)ComprehcnsivcAutomobileLiabilityInsuranceorBusinessAutoPolicy coveringallowned,hiredorotherwiseoperatednon-ownedvehicles,withaminimum combinedsinglelimitofOneMillionDollars($1,000,000)eachoccurrenceforbodily injuryandpropertydamage.
(iii)Workers’CompensationInsuranceasrequiredbyCalifornia.and Employers’LiabilityInsurancewithaminimumlimitofOneMillionDollars ($1,000,000)peremployeeandOneMillionDollars($1,000,000)eachoccurrence.
Theinsurancecoveragerequiredhereinmaybeprovidedthroughsell-insuranceorby oneormorepoliciesofinsuranceissuedtoBuyeroritsagents,consultants,contractorsor subcontractors;provided,however,thatinorderforsuchinsurancetobeacceptable,Buyershall havecontractuallyrequiredsuchagents,consultants,contractorsorsubcontractorstoindemnify, defendandholdharmlessSellerfromClaimstotheextentofBuyer’sobligationsprovidedforin thisAgreementwithSellernamedasanadditionalinsuredtosuchagreements,andsuch insurancepoliciesshallotherwisemeetthetermsandconditionsofthisParagrayh6.
ThepoliciesofliabilityinsuranceshallnameSellerasanadditionalinsuredandshallnot excludeorrestrictcoveragebaseduponallegedoractualnegligenceofanadditionalinsured.
SuchinsuranceshallprovidecoverageforClaimsanddamagesarisingoutoftheactionsof Buyeroritsagents,consultants,contractorsorsubcontractorsonorabouttheRealProperty whilethepolicyisinforce,regardlessofwhethertheClaimordamagearisesafterthepolicyis expired.BuyershalldelivertoSelleracertificateofinsuranceandadditionalinsured endorsementsevidencingtheexistenceofthepoliciesandfurtherevidencingthatcoveragewill notbecanceledormateriallychangedpriortothirty(30)days’advancewrittennoticetoSeller.
SubrogationagainstSellershallbewaivedasrespectsalloftheinsurancepoliciessetforth above(includingwithoutlimitationpoliciesofanysubcontractor).Theinsurancerequired hereunderinnowaylimitsorrestrictsanyindemnitybyBuyeroritsagents,consultants, contractorsorsubcontractorsunderthisAgreement,noristheinsurancetobecarriedlimitedby anylimitationplacedontheindemnityasamatteroflaw.
7.Due-Dili2encePriortoContinenc’Date.OnorbeforetheContingencyDate,Buyer shallhavereviewedandacceptcdanyDue-DiligenceMaterialsprovidedtoBuyer.Priortoand inconnectionwithapprovalofVTTMNo.17609,numerousProject-relatedreportsand materialswereprovidedtoBuyeraspartofthepermittingprocessfortheProjectandare containedinthepublicrecord,providinginformationontheconditionoftheRealProperty, includingbutnotlimitedtothecertifiedEnvironmentalimpactReportandAddendumNo.1,the RemedialActionPlan,andothers(“ExistingReports”).Buyeracknowledgesreceiptofsuch ExistingReportsforduediligencepurposes.SellershallprovidetoBuyerpriortoClosing,and thereafter,anyfinalapplications,reportsorothermaterialsincludinganyproposcdconditionsor 6 4823-5475-9323.vl7
restrictions(“NewReports”)submittedbySellertoregulatoryagencies.includingbutnot limitedtoanyenvironmentalagencyforapprovalofaRAP,forpurposesofobtainingadditional regulatorypermitsorapprovalsfortheProject,totheextentthatsuchNewReportsrelatetothe areasofNeighborhood1and/orNeighborhood3.Seller’sobligationtoprovidesuchNew ReportsisacontinuingobligationandshallsurvivetheClosing.SellershallprovideNew ReportstoBuyereitherbyprovidingcopiesorbymakingsuchmaterialsavailableinanon-line “dataroom”orFTPsite.
8.ConditionofTitle.AttheCloseofEscrow,feesimpletitletotheRealPropertyshallbe conveyedtoBuyerbySellerpursuanttoadeedsubstantiallyintheformofDeedattached heretoasExhibitA,subjectonlytothefollowingmatters(the“ApprovedTitle Conditions”):(a)mattersaffectingtheconditionoftitletotheRealPropertyapproved orwaivedbyBuyerinaccordancewithParagraph12(a)(i);(h)covenantsandrestrictions tohesetforthintheDeed(i)restrictinguseoftheRealPropertytopassiveopen space/parkresourceconservationpurposes,and(ii)prohibitinginstallationbytheBuyer, anditssuccessorsorassignees,atorontheRealPropertyofanywellsorfacilitiesforthe productionofanymineralsoranygroundwater/geothennalresources(whetherfor drinking,agriculture,irrigation,reclamationorotheruses);(c)theLicenseAgreement (substantiallyintheformattachedheretoasExhibitB)foraccessandperformanceofany post-closingobligationsunderVTTMNo.17609,includingbutnotlimitedto(i) constructionofTrail/VistaPointImprovements,(ii)anyenvironmentalinvestigationor remediationrequiredunderVTTMNo.17609StandardCondition25,or(iii)anysoil management:(d)performinganyHabitatImprovementssubjecttoParagraph20(a); (e)reservationsforAccessRightsforUtilityImprovementssubjecttoParaaph12(b)(v) and;and(flmattersaffectingtheconditionoftitletotheRealPropertycreatedbyor resultingfromtheactsofBuyer,oranyPersonactingonbehalfofBuyer(including encumbrancesresultingfromanyfinancingprocuredbyBuyer).
9.Seller’sRepresentations.WarrantiesandCovenants.Thefollowingconstitute representations,warrantiesandcovenantsofSellertoBuyerasoftheEffectiveDate:
(a)RepresentationsandWarranties.
(i)Sellerisacorporation,dulyincorporated,validlyexistingandingood standingunderthelawoftheStateofCalifornia.
(ii)Sellerhasthecorporatepower,rightandauthoritytoenterintothis AgreementandalldocumentsrequiredhereundertobeexecutedbySellerandto consummatethetransactionscontemplatedherein.
(iii)AllrequisitecorporateactionhasbeentakenbySellerinconnectionwith theenteringintothisAgreement,thedocumentsrequiredherebytobeexecutedbySeller, andtheconsummationofthetransactionscontemplatedherein.
(iv)EachPersonexecutingthisAgreementandthedocumentsrequiredherein tobeexecutedbySellerhasthelegalpower,right,andactualauthoritytobindSellerto thetermsandconditionsthereof.
7 4523-5475-9323.v}7
(v)ThisAgreementandallofthedocumentstobcdeliveredbySelleratthe CloseofEscrowwillconstitutebindingandlegalobligationsofSeller,enforceable againstSellerinaccordancewiththeirrespectiveterms,subjecttotheeffectof bankruptcyandsimilarlaws.
(vi)TheexecutionanddeliveryofthisAgreementandthedocumentstobe deliveredbySellerattheCloseofEscrowdonotrequiretheconsentorapprovalofany otherPersononbehalfofSeller,norshallsuchexecutionanddeliveryresultinabreach orviolationofanyGovernmentalRegulationorconflictwith,breach,resultinadefault underorviolateanycontractoragreementtowhichSellerisaparty,orbywhichSeller ortheRealPropertyishound.Seller’srightsunderthisAgreement,Seller’sassets,and theRealPropertyitself,donotandshallnotconstituteplanassetswithinthemeaningof 29C.F.R.§2510.3-101,asmodifiedbySection3(42)oftheEmployeeRetirement IncomeSecurityActof1974,asamended(“ERISA”),Sellerisnota“governmental plan”withinthemeaningofSection3(32)ofERISA.andtheexecutionofthis Agreement,andthesaleoftheRealPropertybySeller,arenotsubjecttoanystale statutesregulatinginvestmentsof,oranyfiduciaryobligationswithrespectto, governmentalp1ans.
(vii)Sellerisnot,norisitownedorcontrolleddirectlyorindirectlyby,any Person,group,ornationnamedonanylistissuedbytheOfficeofForeignAssetsControl oftheUnitedStatesDepartmentoftheTreasury(“OFAC”)pursuanttoExecutiveOrder 13224,66Fed.Reg.49079(Sept.25,2001)oranysimilarlistoranylaw,order,ruleor regulationoranyExecutiveOrderofthePresidentoftheUnitedStatesasaterrorist, “SpeciallyDesignatedNationalandBlockedPerson”orotherbannedorblockedPerson (anysuchPerson,group,entityornationbeinghereinafterref’erredtoasa“Prohibited Person”);Sellerisnot(norisitownedorcontrolled,directlyorindirectly,byany Person,group,ornationwhichis)actingdirectlyorindirectlyfororonbehalfofany ProhibitedPerson;andfromandaftertheeffectivedateoftheabove-referenced ExecutiveOrder,Seller(andanyPerson,group,orentitywhichSellercontrols,directly orindirectly)hasnotknowinglyconductednorwillknowinglyconductbusinessnorhas knowinglyengagednorwillknowinglyengageinanytransactionordealingwithany ProhibitedPersoninviolationoftheU.S.PatriotActoranyOFACruleorregulation, includingwithoutlimitationthemakingorreceivingofanycontributionoffunds,goods orservicestoorfurthebenefitofaProhibitedPersoninviolationoftheU.S.PatriotAct oranyOFACruleorregulation.
(viii)Sellerhasnotreceivedanywrittennoticefromanygovernmental authoritythattheRealPropertyisinviolationofanylaws,ordinancesorregulations. (b)Pre-ClosinCovenants.PriortotheClosingDate,Sellercovenantsasfollows:
(1)Sellerwillusecommerciallyreasonableeffortstocomplyinallmaterial respectswithGovernmentalRegulationsapplicabletotheRealPropertywithinthescope ofandascontemplatedbytheConditionsofApproval.
8 4823-5475-9323.v17
(ii)Sellerwillnotenterintoanyleases,rentalagreementsorotheragreements affordinganyPersonrightsofuse,occupancyand/orpossessionofalloranypartofthe RealProperty,norwillSellerenterintoanyotheragreementsaffectingtheRealProperty, otherthancontractstocomplywiththeConditionsofApprovalormitigationmeasures, orrequirementsofotherregulatoryagencies,intheordinarycourseofbusiness(suchas maintenanceandservicecontracts);provided,however,thatSellershallprovidewritten notificationtoBuyerofSeller’sintenttoenterintoanysuchcontractspriortoentering intosame.
(iii)SellerwillnotconveyalloranyportionoftheRealProperty(orenterinto anycontracttodoso)orknowinglysubjecttheRealPropertytoanyadditionalliensor encumbrancesofanykindwiththeexceptionofliensorencumbrancesrelatedto constructionoftheInitialTrailsorotherworkpursuanttotheConditionsofApproval; provided,however,thatSellershall1wovidewrittennotificationtoBuyerofSeller’s intenttosubjecttheRealPropertytoanysuchliensorencumbrancespriortoanysuch slLbjection.
(iv)Sellerwillnot,withoutthepriorwrittenconsentofBuyer,clearandgrub, grade,developoralteranyportionoftheRealProperty,otherthananyactionsnecessary topreservetheconditionandsafetyoftheRealProperty,tocomplywithanyfinalorder ofanyregulatoryagency,toundertakeanywellabandonn)cnts,toconductinvestigatory activitiesnecessaryforsubmissionofanapplicationforaRAP,ortocomplywiththe Project’smitigation,monitoring,andreportingprogram.
(v)Seller,atitssoleexpense,shallapplytotheCityforlotlineadjustmentsor otheractionsnecessarytocreateNeighborhoods1and3asseparatelegalparcels,in accordancewithConditionL.4.ioftheConditionsofApproval.
10,Bu.er’sRepresentations.WarrantiesandCovenants.Thefollowingconstitute representations.warrantiesandcovenantsofBuyertoSellerasoftheEffectiveDate:
(a)RepresentationsandWarranties.
(i)Buyerisamunicipalcorporation,dulyincorporated,validlyexistingand ingoodstandingunderthelawoftheStateofCalifornia.
(ii)Buyerhasthelegalpower,rightandauthoritytoenterintothisAgreement andalldocumentsrequiredherebytobeexecutedbyBuyerandtoconsummatethe transactionscontemplatedherein.
(iii)AllrequisiteactionhasbeentakenbyBuyerinconnectionwithentering intothisAgreement,thedocumentsrequiredherebytoheexecutedbyBuyer,andthe consummationofthetransactionscontemplatedherein.
(iv)EachPersonexecutingthisAgreementandthedocumentsrequiredherein toheexecutedonbehalfofBuyerhasthelegalpower,right,andactualauthoritytobind Buyertothetermsandconditionsthereof.
9 4823-5475-9323vI7
(v)ThisAgreementandallofthedocumentstobedeliveredbyBuyeratthe CloseofEscrowwillconstitutebindingandlegalobligationsofBuyer,enforceable againstBuyerinaccordancewiththeirrespectivetermssubjecttotheeffectof bankruptcyandsimilarlaws.
(vi)TheexecutionanddeliveryofthisAgreementandthedocumentstobe deliveredbyBuyerattheCloseofEscrowdonotrequiretheconsentorapprovalofany otherPersononbehalfofBuyernorshallsuchexecutionanddeliveryresultinabreach orviolationofanyGovernmentalRegulationorconflictwith,breach.resultinadefault underorviolateanycontractoragreementtowhichBuyerisaparty. (vii)Buyerisnot,norisitownedorcontrolleddirectlyorindirectlyby,any Person.group,ornationnamedonallylistissuedbyOFACpursuanttoExecutiveOrder 13224,66Fed.Reg.49079(Sept.25,2001)oranysimilarlistoranylaw,order,ruleor regulationoranyExecutiveOrderofthePresidentoftheUnitedStatesasaProhibited Person;Buyerisnot(norisitownedorcontrolled,directlyorindirectly,byanyPerson, group,ornationwhichis)actingdirectlyorindirectlyfororonbehalfofanyProhibited Person.Fromandaftertheeffectivedateoftheabove-referencedExecutiveOrder, Buyer(andanyPerson,group,orentitywhichBuyercontrols,directlyorindirectly)has notknowinglyconductednorwillknowinglyconductbusinessnorhasknowingly engagednorwillknowinglyengageinanytransactionordealingwithanyProhibited PersoninviolationoftheU.S.PatriotActoranyOFACruleorregulation.including withoutlimitationthemakingorreceivingofanycontributionoffunds,goodsorservices toorforthebenefitofaProhibitedPersoninviolationol’theU.S.PatriotActorany OFACruleorregulation.
(b)Pre-ClosinttCovenants.PriortoClosing,Buyercovenantsthatitshallprocess andapprovelotlineadjustmentsorotheractionsnecessarytocreateNeighborhoodsIand3as separatelegalparcelsandwaiveallnormallyapplicableCityfeesfortheprocessing,approval, andrecordationofthesame,inaccordancewithConditionL.4.ioftheConditionsofApproval.
11.Escrow.
(a)EscrowInstructions.Sellershall,nolaterthantwo(2)BusinessDaysafterthe EffectiveDatc,causetheOpeningofEscrowbydeliveringafullyexecutedcopyofthis AgreementtoEscrowHolder.TheEscrowHoldershallconfirmtheOpeningofEscroin writingtoSellerandBuyerbyexecutingacopyofthisAgreementwhereprovided,confirming EscrowHolder’sagreementtocomplywiththejointescrowinstructionscontainedherein.
BuyerandSellershallexecuteanddelivertoEscrowHolderanyadditionalorsupplemental escrowinstructionsreasonablyrequestedbyEscrowHolderasmaybenecessaryorconvenient toimplementthetermsofthisAgreementandtoconsummatethetransactioncontemplated herein,providedthattheyarenotinconsistentwiththetermsofthisAgreement. (b)ReportimmPerson.Escrow1-lolderisdesignatedthe“realestatereporting person”forpurposesofSection6045ofTitle26oftheUnitedStatesCodeandTreasury Regulation1.6045-4.UpontheCloseofEscrow,EscrowHoldershallfileForm1099andsend thestatementtoSeller,asrequiredundertheaforementionedstatuteandregulation. 4823-S475-9323.vl7
(c)CloseofEscrow.TheCloseofEscrowshalloccurontheClosingDate,unless BuyerandSelleragreeinwritingtoadifferentdate.
12.ConditionstotheCloseofEscrow.
(a)ConditionsPrecedenttoBuer’sObligations.TheCloseofEscrowand Buyer’sobligationswithrespecttothetransactionscontemplatedbythisAgreementarcsubject tothesatisfactionorwaiver,notlaterthantheClosingDate(unlessanotherdateisspecified),of thefollowingconditions:
(i)TitleMatters.PriortotheClosingDate,theTitleCompanyshallbe committedtoissuetoBuyerastandardCLTAowner’spolicyoftitleinsurance,with liabilityequaltothetotalpurchasepricefortheRealProperly(“Owner’sTitlePoIic“) attheCloseofEscrow,showingtitletotheRealPropertyvestedinBuyer,subjectonlyto theApprovedTitleConditions.
(A)TitleReport.SellershallcausetheTitleCompanytoprovideto BuyerassoonasreasonablypossibleaftertheEffectiveDateapreliminarytitle report(the“TitleReport”),showingthestatusoftitletotheRealProperty, togetherwithcopiesofalldocumentsshownintheTitleReportwhichconstitute exceptionstotitle.
(B)Objections.IfanyexceptionswhichappearintheTitleReportare unacceptabletoBuyer,inBuyer’ssoleandabsolutediscretion,Buyermaywithin ten(10)BusinessDaysafterreceiptoftheTitleReport,givenoticetoSellerof suchunacceptablematters(“Buer’sTitleObjections”).UnlessBuyertimely givesSellernoticeofBuyer’sTitleObligations,Buyershallbedeemedtohave approvedtheTitleReport,allexceptionsreflectedintheTitleReportshallbe deemedtobeApprovedTitleConditions,andBuyershallhavewaiveditsrightto terminatethisAgreementunderthisParagraphI2(a)(i)(exceptassetforthbelow withrespecttoanyNewTitleMatters).
IfBuyertimelygivesSellernoticeofBuyer’sTitleObjections,Sellershallhave five(5)BusinessDaysafterreceiptofsuchnoticefromBuyerwithinwhichto adviseBuyerii’SellerwillcorrectorcureBuyer’sTitleObjectionspriortothe ClosingDate.ifSellerfailstogiveBuyernoticeofitselectiontocon’ectorcure Buyer’sTitleObjectionswithinsuchfive(5)BusinessDayperiod,thenSeller willbedeemedtohaveelectednottocorrectorcureBuyer’sTitleObjections.In suchevent,Buyershallhavetheoptiontoeither(a)tenninatethisAgreementby noticetoSellerwithinfive(5)BusinessDaysthereafter,or(b)proceedtothe Closing,inwhicheventBuyer’sTitleObjectionsshallbedeemedwaived.If Buyerfailstotimelyelectoption(a)withintheaforesaidfive(5)BusinessDay period,itshallconclusivelybedeemedtohaveelectedoption(b).Withthe exceptionofanyofBuyer’sTitleObjectionswhichSellerhaselectedtocorrector cure,Sellershallhavenoobligationtobringanyactionorproceedingor otherwisetoincuranyexpensewhatsoevertoeliminateorcureanyBuyer’sTitle Objections,exceptthatSellershallpayorotherwisedischarge,priortooronthe 11 4823-5475-9323.v17
ClosingDale,allMonetaryObligations,andnoBuyer’sTitleObjectionshallbe requiredwithrespecttoanyMonetaryObligations(includinganyNewTitle MatterswhichareMonetaryObligations).
(C)UpdatesorSupplements,ifanyupdateorsupplementtothe
TitleReportwhichisprovidedtoBuyerafterBuyerhasapprovedtheTitle Report,reflectsanynewmattersmateriallyandadverselyaffectingtitletothe RealProperty,inBuyer’sreasonabledetennination(“NewTitleMaers”),then insucheventBuyermaygivenoticetoSellerofitsdisapprovalofsuchNewTitle Matterswithinlive(5)BusinessDaysafterreceiptoftheupdateorsupplement.
IfBuyerfailstogivenoticeofapprovalordisapprovalofanyNewTitleMatters withinsuchfive(5)BusinessDayperiod,suchNewTitleMattersshallbedeemed approvedandshallbedeemedtobeApprovedTitleConditions.Sellershallhave five(5)BusinessDaysafterreceiptofnoticefromBuyerofBuyer’sdisapproval ofanyNewTitleMatterswithinwhichtoadviseBuyerifScllcrwillcorrector curesuchdisapprovedNewTitleMatterspriortotheClosingDale.IfSellerfails togiveBuyernoticeofitselectiontocorrectorcuresuchNewTitleMatters withinsuchfive(5)BusinessDayperiod,thenSellerwillbedeemedtohave electednottocorrectorcuresuchNewTitleMatters.insuchevent,Buyershall havetheoptiontoeither(a)terminatethisAgreementbynoticetoSellerwithin five(5)BusinessDaysthereafter,or(b)proceedtotheClosing,inwhichevent anyobjectionswhichBuyermayhavewithrespecttosuchNewTitleMatters shallbedeemedwaived,ifBuyerfailstotimelyelectoption(a)withinthe aforesaidfive(5)BusinessDayperiod,itshallconclusivelybedeemedtohave electedoption(b).
intheeventofaterminationofthisAgreementpursuanttothisParagraph 12(a)(i),theprovisionsofParagraph12(d)shallapply.
(ii)TenanciesandLeases.OntheClosingDate,theRealPropertyshallnot besubjecttoanyuseagreements,leasesortenanciesofanynalure,andnoPerson(other thanSeller)shallbeinpossession,orhaveanyrighttoaccessand/oruse,theReal Property,oranypartthereof,otherthancontractstocomplywiththeConditionsof Approvalormitigationmeasures,orrequirementsofotherregulatoryagencies,inthe ordinarycourseofbusiness(suchasmaintenanceandservicecontracts);provided, however,thatontheClosingDate,SellershallprovidewrittennotificationtoBuyerof suchcontractsexistingatClosing,and,intheeventthatSellerentersintoanysuch contractsfromandaftertheEffectiveDate,Sellershallpromptlyprovidewritten notificationtoBuyerofthesame.
(iii)AccuracyofSeller’sRepresentations.WarrantiesandCovenants.As oftheClosingDate,Sellershallhavedulyperformedinallmaterialrespectseachand everyobligationtobeperformedbySellerhereunderand,exceptasprovidedherein, Seller’srepresentationsandwarrantiessetforthinthisAgreementshallbetrueand correctinallmaterialrespects.TotheextentthatanyeventsoccuraftertheEffective DatebutpriortotheClosingDatewhichaffectthetruthorcorrecmessofanyofSeller’s representationsorwarrantiesandwhichmateriallyand/oradverselyaffectthevalueof 4823-5475-9323.vl7
theRealProperty,SellerwillprovideawrittendisclosureofsucheventstoBuyer promptlyuponSellerobtainingknowledgethereof(“SellerDisclosureSchedule”).If SellerprovidesaSellerDisclosureSchedule.Buyershallhavetherighttoapproveor disapprovethereof,andtheCloseofEscrowisconditioneduponBuyer’sapproval thereof.IfBuyerdisapprovesofaSellerDisclosureSchedule,thenthisAgreenentshall automaticallyterminate,andtheprovisionsofParagraph12(d)shallapply.Sellershall havenoobligationtotakeanycolTectiveorcurativeactionswithrespecttoanymatterset forthinaSellerDisclosureSchedulewhichisdisapprovedbyBuyer,unlessresulting fromabreachofanyofSeller’scovenantshereunder.BuyerandSelleracknowledgeand agreethatSellerhasnoduty,priortodedicationorsaletoBuyeroftheRealPropertyor thereafter,forrestorationofanypropertyfollowinganynaturaldisastersuchas earthquake,flood,orfire.FailureofBuyertodisapproveofanySellerDisclosure Schedulewithinlive(5)BusinessDaysafterreceiptthereofshallbedeemedapproval thereof,inwhichcaseSeller’srepresentationsandwarrantiesshallbedeemedmodified toreflectthematterssetforthintheSellerDisclosureSchedule. (iv)OtherConditions.AllotherconditionssetforthinthisAgreementfor Buyer’sbenefitshallhavebeensatisfiedorwaived.
TheconditionssetforthinthisPararapli12(a)arcsolelyforthebenefitofBuyer.
Buyershallatalltimeshavetherighttowaiveanycondition,providedthaisuchwaiver isinwriting.UnlessBuyergivesnoticetoSellerpriortotheapplicabledatethata conditionsetforlhinParagraph12(a)hasnotbeensatisfied,Buyerwillconclusivelybe deemedtohavewaivedsuchcondition.IfBuyerhasactualknowledgethatanyother conditionsetforthinthisParagraph12(a)hasnotbeensatisfied,hutBuyerproceedsto theCloseofEscrow,thenBuyerwillconclusivelybedeemedtohavewaivedsuch condition.However,nowaiverofaconditionbyBuyershallreleaseSellerfromliability foranybreachofacovenantunderthisAgreement.
(b)ConditionsPrecedenttoSeller’sObligations.TheCloseofEscrowand Seller’sobligationswithrespecttothetransactionscontemplatedbythisAgreementaresubject tothesatisfactionorwaiver,notlaterthantheClosingDate(unlessanotherdateisspecitied)of thefollowingconditions:
(i)GrantFundin.BuyerisseekinggrantfundingforthePurchasePrice andmusthavesufficientfundsnolaterthantheContingencyDatetopurchasetheReal Property.IfBuyerhasnotsecuredsufficientfundinganddoesnotgivenoticeof terminationofthisAgreementbythatdateunderParagraph3(b),Sellermayterminate thisAgreementinitssoleandabsolutediscretionbydeliveringwrittennoticetoBuyer; providedhoweverthat,intheeventBuyerhassufficientfundingtopurchase Neighborhood1aloneandhasgiventimelynoticeunderParagraph3(b),Buyermay proceedwithclosingwithrespecttoNeighborhoodIalonesubjecttothetermsand conditionsprovidedherein.Inallevents,SellermayterminatethisAgreementinits entiretyonwrittennoticeifanygovernmentalagencyprovidinganyportionsofgrant fundingtoBuyerimposesanytermsandconditionsrelatingtotheRealPropertyorthe ProjectpriortotheContingencyDatethatinSeller’ssolejudgmentwouldhavea materiallyadverseeffectontheRealProperty,theRemainderPropertyortheProject. 13 4523-5475-9323.vi7
(ii)AccuracofBuer’sRepresentations.WarrantiesandCovenants.
Buyershallhavedulypcrfonuedinallmaterialrespectseachandeveryagreementtobe performedbyBuyerhereunder,andBuyer’srepresentationsandwarrantiessetforthin thisAgreementshallbetrueandcorrectinallmaterialrespects.Totheextentthatany eventsoccurpriortotheClosingDatewhichaffectthetruthorcorrectnessofBuyer’s representationsorwarranties,Buyerwillprovideawrittendisclosureofsucheventsto SellerpromptlyuponBuyerobtainingknowledgethereof(“BuserDisclosure Schedule”).IfBuyerprovidesaBuyerDisclosureSchedule,Sellershallhavetherightto approveordisapprovethereof,andtheCloseofEscrowisconditioneduponSeller’s approvalthereof.ifSellerdisapprovesofaBuyerDisclosureSchedule,thenthis Agreementshallautoinaticallyterminate,whereupontheprovisionsofParagraph12(d) shallapply’.Buyershallhavenoobligationtotakeanycorrectivecourseofactionwith respecttoanymattersetforthinaBuyerDisclosureSchedulewhichisdisapprovedby Seller,unlessresultingfromabreachofBuyer’scovenantshereunder.FailureofSeller todisapproveofanyBuyerl)isclosurcSchedulewithinthree(3)BusinessDaysafter receiptthereofshallbedeemedapprovalthereof,inwhichcaseBuyer’srepresentations andwarrantiesshallbedeemedmodifiedtoreflectthematterssetforthintheBuyer DisclosureSchedule.
(iii)Subdivision/LotLineAdjustment.Thesubdivisionorlotlineprocess providedforingraph10(b)shallhecompleted.
(iv)ModificationofImprovements.InlightoftheCity’sacquisitionof Neighborhood1andNeighborhood3andtheeliminationofallresidentialdevelopment ontheProjectSiteeastofGilbertStreet,thePartiesagreetonegotiateforadjustmentsto off-sitefacilitiesunderVTTMNo.17609andtheCityEngineeringDepartmentLetter datedSeptember30,2015,andtofinalizesuchadjustmentsassoonasreasonably possible.Approvalofsuchmutually-agreedadjustmentsshallbeaconditionofClosing. (v)GrantofAccessRights.BuyeracknowledgesthatSellermayrequire accessthroughandacrossportionsofNeighborhood3inorderforSellerandits assigneestoaccess,construct,repairandmaintain(together,“AccessRights”)certain facilitiesthatmayincludewater,electrical,stormdrain,sewer,cableand/orotherpublic utility-typefacilitiesandrelatedimprovements(“UtilitImprovements”)thatmaybe necessaryfordevelopmentoftheWestCoyoteHillsproperty(ProjectSite)ownedby SellerwestofGilbertStreet,inaccordancewithVTTMNo.17609andfinalsubdivision mapsfiledthereunder,andapplicableregulationsoftheCityofFullertonforpublic utilities.PriortoClosing,thePartiesshallnegotiateingoodfaithregardingtheAccess RightsfortheUtilityImprovements,ifany,andshallundertakebesteffortstoreachan agreementpriortoClosing.TheAccessRightsshallbeintheform(s)reasonably necessarytoserveSeller’sUtilityImprovementsrequirements,andmaybeintheformof anencroachmentagreement,licenseagreement,rightofentry,oriftheUtility improvementsareofapermanentnature,aneasement,andshallberecorded.TheUtility Improvementsshallbelocatedinsuchamannerastoensurethat,inthereasonable discretionoftheCityofFullerton,theywillnothaveamaterialadverseimpactontheuse oftheRealPropertyforopen-space/parkresourceconservationpurposes,including relatedrecreationaluses,oranyHabitatImprovementsunderParaeraph20(a).Tnthe 14 4g23-5475-9323.vI7
eventthePartiesareunabletocompleteanagreementontheAccessRightsfortheUti]ity ImprovementspriortoClosing,amemorandumreferringtothisprovisionshallbe recordedatClosing,andthePartiesshallnegotiatepost-closingingoodfaithtofinalize andrecordsuchAccessRightsassoonasreasonablyfeasiblethereafter,andinallevents priortoapprovalofthefirstfinalsubdivisionmapfortheProject.ifthePartiesare unabletoagreeonsaidAccessRights,themattershallberesolvedinaccordancewiththe disputeresolutionprovisionsinParagraph28.TnnoeventmaySelleroritsassigneesbe requiredtolocatesuchUtilityImprovementsoutsidetheProjectSitewithouttheir consentintheirsoleandabsolutediscretion.TheAccessRightsshallbereflectedinthe firstfinalsubdivisionmaprecordedfortheProject,andallsucceedingfinalmaps,but shallexpireifafinalsubdivisionmapisnottimelyfiledfortheProjectpursuantto VTTMNo.17609asextended.
(vi)OtherConditions.AllotherconditionssetforthinthisAgreementfor Seller’sbenefitshallhavebeensatisfiedorwaived.
TheconditionssetforthinthisParagraph12(b)aresolelyforthebenefitofSeller.Seller shaLlatalltimeshavetherighttowaiveanycondition,providedthatsuchwaiverisinwriting.
IfSellerhasactualknowledgethatanyconditionsetforthinthisParagraph12(h)hasnotbeen satisfied,butSellerproceedstotheCloseofEscrow,thenSellerwillconclusivelybedeemedto havewaivedsuchcondition.However,nowaiverofaconditionbySellershallreleaseBuyer fromliabilityforanybreachofacovenantunderthisAgreement. (c)DeemedModificationofVTT1i.TheCloseofEscrowandtheobligationsof bothSellerandBuyerwithrespecttothetransactionscontemplatedbythisAgreementare subjecttotheapplicableconditionfor“deemedmodification”in\‘TTMNo.17609,Conditionof ApprovalL.3.iv,wherebyBuyer’spurchaseofNeighborhood1onlyautomaticallyeliminatesthe areaofNeighborhood1,orConditionofApprovalL.4.v,wherebyBuyer’spurchaseof Neighborhood1andNeighborhood3automaticallyeliminatestheareasofNeighborhood1and Neighborhood3andanydevelopmentinsuchacquiredrealproperty,togetherwithelimination of’anyandallrightsandobligationspertainingthereto,exceptforremainingobligationsofthe SellerinthoseareasprovidedintheConditionsofApproval,andsubjecttoanyrecorded easement,covenantorrestriction;providedthatifthePartiesdeterminethatanyfurtheractionis neededwithregardtomodificationofanyProjectentitlementiiiordertoreflecttheeLimination ofdevelopmentoftheRealProperty,theyagreetocooperateingoodfaithtoundertakeanysuch additionalactionspriortotheClosingDate.
(d)FailureofConditions.Intheeventthatanyoftheconditionssetforthin Paragraphs12(a),12(b)orarenotsatisfied(orwaived,ifapplicable)bytheapplicable dates,forareasonotherthanabreachordefaultbyBuyerorSellerunderthisAgreement,orin theeventofaterminationofthisAgreement,including,withoutlimitation,terminationpursuant toParagraph21orParagraph22:
(i)ThisAgreement,theEscrowandtherightsandobligationsofBuyerand Sellerthereundershallterminate,exceptfortheSurvivingObligations; 15 4823-5475-9323.vl7
(ii)EscrowHoldershallpromptlyreturntoSellerandBuyeranydocuments depositedbythem,respectively,intoEscrowwhichareheldbyEscrowHolderonthe dateoftermination;
(iii)EscrowHoldershallpromptlyreturntoBuyertheDeposit,alongwithany interestaccruedthereon;
(iv)AllDue-DiligenceMaterials,andallsurveys,appraisals,investigative reports,environmentalreports,andotherwrittenmaterialsdevelopedbyorforthebenefit ofBuyerinconnectionwiththeInspections(ifany)will,atSeller’srequest,bepromptly deliveredtoSeller,atnoexpensetoSeller,exceptforinternallygeneratedreportsor materialswhichareconfidentialinBuyer’sreasonableopinion.Selleracknowledgesthat suchdocumentswillbedeliveredbyBuyerwithoutanyrepresentationsorwarranties.
TheforegoingdocumentsshallalsobedeliveredtoSeller,atSeller’srequest,ifBuyer defaultsunderthisAgreement.TheforegoingobligationsareSurvivingObligations;and (v)SellershallbefreetoproceedwiththedevelopmentoftheRealProperty inaccordancewithVTTMNo.17609.
(e)CancellationFeesandExpenses.IntheeventthatEscrowterminatesfora reasonotherthanthedefaultofBuyerorSellerunderthisAgreement,thecancellationcharges requiredtobepaidtoEscrowHolderandtheTitleCompanyshallbeborneone-half(1/2)by Sellerandone-half(1/2)byBuyer,andallotherchargesshallbebornebythePartyincurring same.IntheeventthatEscrowterminatesbecauseofthedefaultofBuyerorSeller,the defaultingPartyshallpayallsuchcancellationcharges.TheforegoingobligationsareSurviving Obligations.
13.DisclaimerofRepresentationsorWarrantiesbySeller.
(a)InspectionsandReviews.BuyeracknowledgesthatpriortotheClosingDate, BuyerwillhaveconductedanyandallInspectionsandreviewofDue-DiligenceMaterialsthat BuyermayhavedesiredandwillhaveevaluatedtheRealProperty(including,withoutlimitation, thephysicalandenvironmentalconditionoftheRealPropertyandcompliancewith GovernmentalRegulationsandEnvironmentalLaws)tothefullandcompletesatisfactionof Buyer,andthatBuyerwillacquiretheRealPropertysolelyonthebasisoftheforegoing,thetitle insuranceprotectionaffordedbytheOwner’sTitlePolicy,andtheexpressrepresentations, warrantiesandcovenantsofSellersetforthinthisAgreement.BuyerisnotacquiringtheReal Propertyonthebasisofanyinformationprovidedoranyrepresentations,warrantiesor covenantsmadebySeller,oranyPersonactingonSeller’sbehalfotherthantheexpress conditions,representations,warrantiesandcovenantsofSellersetforthinthisAgreementand theConditionsofApproval.BuyerfurtheracknowledgestoSellerthatexceptasexpresslyset forthinthisAgreement,neitherSellernoranyotherPersonactingonSeller’sbehalfhasmade anyrepresentations,warrantiesorcovenantsconcerningtheRealProperty,andthatBuyer,in executing,deliveringand!orperformingthisAgreement,hasnotrelieduponanyrepresentations, warrantiesorcovenantsotherthanthoseexpresslysetforththisAgreement. 16 4823-5475-9323.vi7
(b)“ASIS”PURCHASE.BUYERAGREESTHATTHEREALPROPERTYIS
TOBESOLDTOANDACCEPTEDBYBUYER“ASIS”AND“WhEREiS,”WITHALL
FAULTS.IFANY,INCLUDING,WITHOUTLIMITATION,THEENVIRONMENTAL
CONDITIONOFTHEREALPROPERTY,ANDEXCEPTASEXPRESSLYSETFORTHTN THISAGREEMENT,SELLERDOEShEREBYDiSCLAIMANYANDALL
WARRANTIES,ANDMAKESNOREPRESENTATIONSORWARRANTIES,EXPRESS
ORIMPLIEDOFANYKINDTOBUYERINCLUDING,WITHOUTLTMITATTON,
WARRANTIESRELATINGTO(1)THEPHYSICALCONDITIONOFTHELAND,
IMPROVEMENTS,IFANY,ANDANYPERSONALPROPERTY,(2)THEHABITABILITY
OFTHEREALPROPERTY,IMPROVEMENTSORANYPERSONALPROPERTY,OR
ThEIRSUITABILITYFORANYPARTiCULARPURPOSE,(3)THEENVIRONMENTAL CONDITIONOFTHEREALPROPERTY,INCLUDiNGTHEPRESENCE(ORABSENCE) OFHAZARDOUSMATERIALSOROTHERCONTAMINATiON,(4)COMPLIANCEOF THEREALPROPERTYWITHGOVERNMENTALREQUIREMENTS,INCLUDiNG
ENVIRONMENTALLAWS,(5)SOILCONDITIONS,DRAINAGE,FLOODING
CHARACTERISTICS,UTILITIES(INCLUDINGTHEAVAILABILITYTIIFREOF),OR (6)ANYOTHERCONDITIONSEXISTINGTN,UNDERORABOUTTHEREAL
PROPERTY.
BUYERCOVENANTS,REPRESENTSANDWARRANTSTI-TAT:(i)BUYERI-lAS
INSPECTEDORWILLINSPECTTHEREALPROPERTY,ANDIMPROVEMENTSON TIlEREALPROPERTY,IFANY,ANDALLMATTERSRELATINGTHERETOWHICH BUYERDESIRES;(ii)NEiTHERSELLERNORANYONEONSELLER’SBEHALFHAS
MADE,ORISMAKING,ANYWARRANTIESORREPRESENTATIONSRESPECTING
THEREALPROPERTYOTHERTHANTHOSEEXPRESSLYSETFORTHINTHIS
AGREEMENT;(iii)OTHERTHANANYWARRANTIESORREPRESENTATIONS
RESPECTINGTHEREALPROPERTYThATAREEXPRESSLYSETFORTHINTHIS AGREEMENT,BUYERISRELYiNGSOLELYONBUYER’SOWNINVESTIGATiONOF
THEREALPROPERTYANDALLMATTERSPERTAININGTHERETO,INCLUDING
BUTNOTLIMITEDTOTHEENVIRONMENTALCONDITIONOFTHEREAL
PROPERTY;AND(iv)EXCEPTASEXPRESSLYSETFORTHHERELN,BUYERIS PURChASINGTHEREALPROPERTY“ASIS.”
BUYERACKNOWLEDGESTHATOTHERTHANANYWARRANTIESOR
REPRESENTATIONSRESPECTINGTHEREALPROPERTYTHATAREEXPRESSLY
SETFORTHINTHISAGREEMENT,SELLERMAKESNO,ANDEXPRESSLY
DISCLAIMSANY,WARRANTIESORREPRESENTATIONSCONCERNINGTHE
ACCURACYORCOMPLETENESSOFANYOFTHEDUE-DILIGENCEMATERIALS.
FURTHER,BUYERACKNOWLEDGESANDAGREESTHAT,NOTWITHSTANDING
ANYTHINGINTHISAGREEMENTTOTHECONTRARY,iNNOEVENTShALL
SELLERBELIABLEFORANYSPECIAL,iNDIRECTORCONSEQUENTIALDAMAGES,
INCLUDINGBUTNOTLIMITEDTOCLAIMSFORLOSSOFUSE,RENTS,
ANTICIPATEDPROFITORBUSINESSOPPORTUNITY,ORBUSINESSINTERRUPTION,
DIMINUTIONINVALUE,ORMENTALOREMOTIONALDISTRESSORFEAROF
INJURYORDiSEASEBYBUYERORANYTHIRDPARTY.
17 4823-5475-932’v17
ANY
REPORTS,
REPAIRS
OR
WORK
REQUIRED
BY
BUYER
ARE
THE
SOLE
RESPONSIBiLITY
OF
BUYER.
AND
BUYER
AGREES
THAT
THERE
IS
NO
OBLIGATION
ON
THE
PART
OF
SELLER
TO
MAKE
ANY
CHANGES,
ALTERATIONS
OR
REPAIRS
TO
THE
REAL
PROPERTY
(EXCEPT
THOSE
SET
FORTH
IN
THE
CONDITIONS
OF
APPROVAL),
OR
TO
CURE
ANY
VIOLATIONS
OF
LAW
OR
TO
COMPLY
WITH
THE
REQUiREMENTS
OF
ANY
INSURER.
BUYER
IS
SOLELY
RESPONSIBLE
FOR
OBTAINING
ANY
APPROVAL
OR
PERMIT
NECESSARY
FOR
TRANSFER
OF
THE
REAL
PROPERTY
TO
BUYER
BY
SELLER
AND,
EXCEPT
THOSE
SET
FORTh
IN
TIlE
CONDITIONS
OF
APPROVAL,
FOR
ANY
REPAIRS
OR
ALTERATiONS
NECESSARY
TO
OBTAIN
THE
SAME,
ALL
AT
BUYER’S
SOLE
COST
AND
EXPENSE.
NOTWITHSTANDING
THE
FOREGOING.
AND
CONSISTENT
WITH
PARAGRAPH
13(e),
NOTHING
TN
THIS
PARAGRAPH
13(b)
SHALL
REDUCE
OR
MODIFY
[N
ANY
WAY
ANY
OBLIGATION
OF
SELLER
PERTATNFNG
TO
THE
REAL
PROPERTY
UNDER
VTTM
NO,
17609
AND
THE
CONDITIONS
OF
APPROVAL,
OR
UNDER
ANY
OTHER
APPLICABLE
GOVERNMENTAL
APPROVAL
OR
PERMIT.
THE
PROVISIONS
OF
THIS
PARAGRAPH
13(h)
ShALL
SURVIVE
THE
CLOSE
OF
ESCROW
AND
SHALL
NOT
BE
DEEMED
MERGED
INTO
THE
DEED
OR
ANY
OTHER
INSTRUMENT
OR
CONVEYANCE
DEl
IVEI
D
AT
THE
CLOSE
OF
ESCROW.
IJY
TN1TIArS
(c)
No
Independent
Investigation
by
Seller.
Buyer
further
acknowledges
that
any
information
and
materials
provided
or
to
be
provided
by
Seller
or
any
Person
acting
on
Seller’s
behalf
with
respect
to
the
Real
Property
(including,
without
limitation,
the
Due-Diligence
Materials)
were
obtained
from
avariety
of
sources
and
third
parties,
and
that
Seller
has
not
made
any
independent
investigation
or
verification
of
such
information
and
materials,
and
that,
except
as
expressly
set
forth
in
this
Agreement.
Seller
therefore
disclaims
any
representations
or
warranties
as
to
the
accuracy
or
the
completeness
of
such
information
and
materials.
Seller
will
not
be
liable
for
any
negligent
misrepresentation
or
any
failure
to
investigate
the
Real
Property
to
verify
the
accuracy
of
any
of
the
information
and
materials
provided
or
to
be
provided
to
Buyer,
nor
will
Seller
be
liable
or
bound
in
any
manner
by
any
verbal
or
written
statements,
representations,
appraisals,
environmental
assessment
reports,
or
other
information
or
materials
pertaining
to
the
Real
Property
furnished
to
Buyer
by
Seller
or
by
any
Person
acting
on
Seller’s
behalf,
except
for
the
express
representations
and
warranties
of
Seller
set
forth
in
this
Agreement.
cLTYER’S
INiTIALS
(d)
GENERAL
RELEASE.
EXCEPT
FOR
SELLER’S
OBLIGATIONS
UNDER
VTTM
NO.
17609,
THE
CONDITiONS
OF
APPROVAL.
THIS
AGREEMENT
AND/OR
ANY
DOCUMENT
EXECUTED
BY
SELLER
AT
OR
FOLLOWING
THE
CLOSE
OF
ESCROW,
(i)
BUYER
RELEASES
SELLER
AND
ALL
SELLER
iNDEMNIFIED
PARTIES
18 4823-5475-9323.vl7
FROMANYANDALLCLAIMSWHICHBUYERORANYPARTYRELATEDTOOR
AFFILIATEDWiTHBUYER(A“BUYERRELATEDPARTY”)HASORMAYHAVE
ARISINGFROMORRELATEDTOTHEREALPROPERTY,INCLUDINGTHEDUE-
DILIGENCEMATERiALS,ANDANYCONSTRUCTION,SOILSORGRADiNGDEFECTS,
ENGINEERINGDEFECTS,ERRORSOROMISSIONSINTHEDESIGN,CONSTRUCTION ORGRADiNG,ANDANYENVIRONMENTALOROTHERPHYSICALCONDITTONOF THEREALPROPERTY,AND(ii)BUYERSHALLNOTLOOKTOSELLERIN
CONNECTiONWITHTHEFOREGOINGFORANYREDRESSORRELIEF.THIS
RELEASESHALLBEGIVENFULLFORCEANDEFFECTACCORDINGTOEACHOF
ITSEXPRESSEDTERMSANDPROViSiONS,INCLUDINGTHOSERELATINGTO
UNKNOWNANDUNSUSPECTEDCLAIMS,DAMAGESANDCAUSESOFACTION,
AND,INTHATREGARD,SUBJECTTOTIlEIMMEDIATELYPRECEDINGSENTENCE,
BUYERHEREBYEXPRESSLYWAIVESALLRIGHTSANDBENEFITSITMAYNOW
HAVEORHEREAFTERACQUflEUNDERCALIFORNIACIVILCODESECTION1542 WHICHPROVIDES:“AGENERALRELEASEDOESNOTEXTENDTOCLAIMSTHATTHE CREDITORORRELEASINGPARTYDOESNOTKNOWORSUSPECTTOEXISTINIllSOR HERFAVORATTHETIMEOFEXECUTINGTHERELEASEANDTHAT,iFKNO11WBY HIMORHER,WOULDHAVEMATER?ALLYAFFECTEDHISORHERSETTLEMENTWITH THEDEBTORORRELEASEDPARTY.”THEFOREGOiNGRELEASEISASURVIVING OBLiGATION.
BUYERS
INITIAlS
(e)NothinginParagraphs13(a)-(d)aboveshallreduceormodifyinanywayany obligationofSellerpertainingtotheRealPropertyunderVTTMNo.17609andtheConditions ofApproval,underanyotherapplicablegovernmentalapprovalorpermit,orunderthis Agreement.
14.DeliveriestoEscrowHolder.
(a)BySeller.SellershalldeliverorcausetohedeliveredtoEscrowHolder,atleast one(I)BusinessDaypriortotheClosingDate,thefollowing:
(i)Deed.Agrantdeed(“Deed”)insubstantiallytheformofExhibitA attachedhereto,dulyexecutedandacknowledgedbySeller,conveyingtheRealProperty toBuyer.
(ii)LicenseAgreement.Alicenseagreement(“LicenseAtreement”) providingSelleraccesstotheRealPropertytoconductanypost-closingremediation, otherremainingobligationsprovidedintheConditionsofApprovalforVTTMNo. 17609,andorundertakeHabitatImprovementssubjecttoParagraph20(a),in substantiallytheformofExhibitB(orasmodifiedbymutualagreementofSellerand Buyer)attachedhereto,dulyexecutedandacknowledgedbySeller. (iii)Non-ForeignCertification.AcertificationdulyexecutedbySeller (“FIRPTACertificate”),settingforthSeller’saddressandfederaltaxidentification 19 4823-5475-9323.vI7
numberandcertifyingthatSellerisa“UnitedStatesPerson”andthatSellerisnota “foreignperson”inaccordancewithand/orforthepurposeoftheprovisionsof Section1445oftheInternalRevenueCodeof1986,asamended,andanyregulations promulgatedthereunder,andacorrespondingcertification(Form593orotherapplicable Californiaform)forfilingwiththeapplicabletaxingauthoritiesintheStateofCalifornia. (iv)Bring-DownCertificate.AfinalupdateoftheSellerDisclosure Schedule(ifapplicable).
(v)1099S.AdulyexecutedcountelpartofaRealEstateReporting SolicitationforthepurposesofcomplyingwithSection6045(e)oftheInternalRevenue Code(“Form1099S”).
(vi)EscrowWithholdingAccountorPerformanceSecuritforPrice Adjustment.intheeventthatanyPriceAdjustmentprovidedforunderParagraph2 camiolbemadeattheCloseofEscrow,SellershalldelivertoBuyerattheCloseof EscrowperformancesecurityinaformreasonablyacceptabletoBuyer,orSellershall cooperatewithBuyerinestablishinganescrowwithholdingaccount,ineithercase sufficientinamounttosecuretheanticipatedPriceAdjustment;andfollowingthe Parties’determinationofthePriceAdjustment,theamountifanyduetoBuyershallbe paid,andtheperformancesecurityreleasedorremainingescrowamountsretuniedto Seller,withinthirty(30)daysofsuchpayment,ifany,duetoBuyer. (vii)EscrowWithholdingAccountorPerformanceSecuritRemediation Obligations.AttheCloseofEscrow,SellershallcommittoperformtheRernediation ObligationsrelatingtotheRealPropertyunderStandardCondition25oftheConditions ofApprovalwithcommerciallyreasonablediligence,andshallseektocompletethe RemediationObligationsnolaterthanone(1)yearafterapprovalofanyrequiredRAPs fortheRealProperty,providedthatthePartiesacknowledgethatdelaysmayoccur(such asceasingworkduringCaliforniagnatcatcherbreedingseason),workmaytakelonger thanexpected,ormayinvolveunanticipatedagencyrequirements,whichshallnot constituteabreachofthisAgreement.TosecuretheRemediationObligations,Seller,at itselection,shalleitherdelivertoBuyerattheCloseofEscrowperformancesecurityina sumsufficienttocover100%oftheestimatedcostsofperformingsuchobligationsandin aformreasonablyacceptabletoBuyer,orSellershallcooperatewithBuyerin establishinganescrowwithholdingaccountinwhichaportionofthePurchasePrice equaltosaidestimatedcostsshallbedepositedandretainedtofundand/orsecurethe performanceofsuchobligations;andfollowingSeller’swrittennoticetoBuyerofthe completionofSeller’sobligationsunderStandardCondition25,suchperformance securityshallbereleasedoranybalanceremaininginsuchwithholdingaccountshallbe disbursedtoSellerwithinthirty(30)daysofsuchnoticeofcompletion. (viii)ProofofAuthorit.SuchproofofSeller’sauthorityandauthorizationto enterintothisAgreementandconsummatethetransactionscontemplatedhereby,and suchproofofthepowerandauthorityofthePerson(s)executingand/ordeliveringany instruments,documentsorcertificatesonbehalfofSellertoactforandbindSelleras 20 4523-5475-9323.vl7
maybereasonablyrequiredbytheTitleCompanyand/orBuyer(includingbutnot limitedtoacommerciallyreasonableformofowner’sdeclaration). (ix)OtherDocuments.Anyotherdocurncntsorinstrumentsreasonably requiredtoconsummatethetransactioninaccordancewiththisAgreement. (b)ByBuyer.BuyershalldeliverorcausetobedeliveredtoEscrowHolder,atleast one(1)BusinessDaypriortotheClosingDate,thefollowing:
(I)PurchasePrice.ThePurchasePrice(afteradjustingforanyprorations hereunder)togetherwithBuyer’sshareofclosingcosts.
(ii)Deed.TheI)eedfullyexecutedandacknowledgedbyBuyer.
(iii)LicenseAtreeinent.TheLicenseAgreement,dulyexecutedand acknowledgedbyBuyer.
(iv)ProofofAuthoril’..SuchproofofBuyer’sauthorityandauthorizationto enterintothisAgreementandconsummatethetransactionscontemplatedhereby,and suchproofofthepowerandauthorityofthePerson(s)executingand/ordeliveringany instruments,documentsorcertificatesonbehalfofBuyertoactforandbindBuyeras maybereasonablyrequiredbytheTitleCompany.
(v)Brinn-DownCertificate.AfinalupdateoftheBuyerDisclosure Schedule(ifapplicable).
(vi)1099S.AdulyexecutedcounterpartoftheForm1099S.
(vii)Preliminar’.Chani.eofOwnershipReport.Adulyexecuted PreliminaryChangeofOwnershipReportintheformrequiredbytheOrangeCounty Recorder’sOffice.
(viii)OtherDocuments.Anyotherdocumentsorinstrumentsreasonably requiredtoconsummatethetransactioninaccordancewiththisAgreement.
15.CIosinCostsandExpenses.Sellershallpay(a)one-half(Y2)ofallEscrowfeesand costs,(h)thepremiumsfortheOwner’sTitlePolicy(exclusiveofthecostofanyupgrades, endorsements,co-insuranceandreinsurancetoOwner’sTitlePolicy,includingthecostof extendedcoverageovergeneralexceptionsandanyendorsements,whichshallbepaidforby Buyer),(c)theCityandCountydocumentarytransfertax,(d)therecordingfeesfortheDeed(s), and(e)Seller’sshareofprorations.Buyershallpay(0premiumsfortheextendedcoverage portionoftheOwner’sTitlePolicyandanyendorsementstotheOwner’sTitlePolicyrequested byBuyer,(g)one-half(/2)ofallEscrowfeesandcosts,and(h)Buyer’sshareofprorations.
BuyerandSellershalleachpayalloftheirownlegalandprofessionalfeesandfeesofother consultantsincurredbyBuyerandSeller,respectively.Allothercostsandexpensesnot otherwiseprovidedforinthisAgreementshallbeallocatedbetweenBuyerandSellerin accordancewiththecustomarypracticeforcommercialrealestatetransactionsofundeveloped landinOrangeCounty,California.
21 4823-5475-9323.vl7
16.Prorations.
(a)General.Prorationsshallbemadeinaccordancewithlocalcustomandpractice inOrangeCounty,Californiaforcommercialrealestatetransactionsofundevelopedland,unless otherwiseexpresslyprovidedherein.Forpurposesofcalculatingprorations,Buyershallbe deemedtobetheowneroftheRealPropertyfortheentiredaywhichisthedateoftheCloseof Escrow.
(b)TaxesandAssessments.Allnon-delinquentrealpropertytaxes(including assessments)fortheRealPropertyshallbeproratedbasedontheactualcurrenttaxbill.All delinquentrealpropertytaxes,ifany,andanysupplementalorescapedrealpropertytaxeswhich relatetotheperiodpriortotheClosingDateshallbepaidattheCloseofEscrowfromfunds accruingtoSeller.BuyeracknowledgesthatthesaleoftheReaLPropertywillresultina reassessmentoftheRealPropertyandthatasupplementaltaxbillwillbeissuedaftertheClose ofEscrow,whichshallbeBuyer’ssoleresponsibility.
(e)ClosingStatements.ThePartiesshallprovidetheEscrowHolderwithany informationordocumentationrequiredtoenabletheEscrowHoldertocomputetheprorations, andtoprepareestimatedclosingstatementsatleastlive(5)BusinessDaysbeforetheClosing Date.Basedontheinformationprovided,EscrowHoldershallpromptlyprepareestimated closingstatementsandshallcirculatecopiestotheParties.ThePartiesshallworkwitheach otherandwithEscrowHoldertomodifysaidestimatedclosingstatements,asneeded,untilthey areinapositiontoapprovetheirrespectiveestimatedclosingstatements.Promptlyfollowing theCloseofEscrow,theEscrowHoldershallprepareandsubmittothePartiesfinalclosing statements,whichshallbesubstantiallythesameastheestimatedclosingstatementsapproved bytheParties,butwhichreflectactualclosingcostsandrecordingcharges.
17.EscrowCIosinProcedures.OntheClosingDate,EscrowHolderwill:
(a)Funds.DisbursethefundsdepositedwithEscrowHolderbyBuyerasfollows:
(i)DeducttheclosingcostschargeabletotheaccountofSellerpursuantto Paragraph15.
(ii)If,astheresultoftheprorationspursuanttoParacranh16,amountsareto bechargedtotheaccountofSeller,deductthetotalamountofsuchcharges. (iii)DisbursethecostsandexpensespayablebyBuyerandSellerpursuantto Paragraph15tothePartiesentitledthereto.
(iv)DisbursethePurchasePrice(netofanyamountschargedtotheaccountof SellerpursuanttoSubparagraphs(i)and(ii)above),andanyamountsretainedinan escrowwithholdingaccountestablishedpursuanttoParagraph14(a)(vi).toSeller. (v)Disbursethebalanceofthefunds,ifany,toBuyer.
ThePartiesshallprovidetheEscrowHolderwithwire-transferorother instructionswithrespecttoanydisbursementsoffundstowhichtheyareentitled. 22 4823-5475-932.v17
(b)Rccordin.CausetheDeed(s),theLicenseAgreement,andanyotherdocuments whichthePartiesheretomaydirect,toberecordedintheOfficialRecords,andobtain confonnedcopiesthereoffordistributiontoBuyerandSeller.
(c)Documents.Afterrecordation,delivertheDeed(s),theLicenseAgreement,and anyotherrecordeddocumentstoBuyer.anddistributeoriginalsorconformedcopiesofallother documentsasdirectedbytheParties.
18.PossessionatCloseofEscrow.SellershalldeliverpossessionoftheRealPropertyto BuyerupontheCloseofEscrow.
19,PurchaseofNebhborIiood1Alone.IfBuyerelectstopurchaseNeighborhood1alone underParagraph3(b),uponSeller’sreceiptfromBuyerofaNeighborhoodINotice,theParties shallmutuallyagreeuponarevisedDeedandLicenseAgreementandcreateaseparatelegal parcelforNeighborhoodIonorbeforetheClosingDate.Theescrowwithholdingamount(or performancesecurity)inParagraphs14(a)vi)andI4(a)(vii)shallhereducedtoreflectthe PurchasePriceforNeighborhood1only.
20.Post-ClosiiiObligations.
(a)Seller’sOblitations.AftertheCloseofEscrow,Sellershallberesponsibleto completetheVTTMNo.17609ConditionsofApproval(asdeemedmodifiedormodifiedunder Paragraphs12(b)(v’)and12(c)hereof),includingbutnotlimitedtoRemediationObligations. wellabandonment,andprovisionofNeighborhoodTrailsandKeyVistaImprovements. accordingtothetermsandconditionsthereof;andnothinghereinconstitutesamodificationor reductionofanysuchobligations.ThePartiesfurtheracknowledgeandagreethattheSellerhas nocurrentobligationunderMM4.12-1orotherwisetoundertakeanyhabitatrestoration, improvementorpreservation(“HabitatImprovements”)ontheRealProperty;providedhowever, thattotheextentthatHabitatImprovementsrequiredbytheUnitedStatesFishandWildlife ServiceinconnectionwithfuturepermittingproceedingsfortheProjectexceedthosecurrently requiredunderMM4.12-1(a)fortheWestCoyoteHillsPreserve(“WCHPreserve”),theCity desires,andifauthorizedbyStatefundingagencies,shallpermitSellertoundertakesuch Habitatimprovements,inwholeorinpart,ontheRealProperty,atthesolecostandexpenseof SellerortheManagementAgencyestablishedunderConditionofApprovalM-3,asthecase maybe,andfollowingcompletionthereofshallrequestthatsuchareasbeincludedintheWCH PreservesubjecttoMlvi4.12-1includingtheConservationEasementprovidedfortherein.Seller acknowledgesthatanyconservationeasementorotherrestrictionsontheRealpropertywillbe subjecttotheapprovaloftheStatefundingagencies.Further,Sellershallindenunify,defend(at itssolecostandexpense),protectandholdharmlessBuyerandBuyer’sofficials,officers, employees,andagents,includingwithoutlimitationBuyer’sconsultants,attorneys,contractors, andsubcontractors(collectively,the“BuserIndemnifiedParties”),fromandagainstanyand allClaimsarisingfromorrelatedtoSeller’spost-closingworkofanykind,includingClaims causedbyorarisingoutofSeller’soritsagents’,contractors’orsubcontractors’entryon, performanceofwork,orconstructionandmaintenanceassetforthintheLicenseAgreement. (b)Buyer’sObligations.
23 4823-5475.9323.vl7
(i)AflertheCloseofEscrow,tothcextentthatanyregulatoryagencywith jurisdictioiiovertheRealPropertyinconnectionwithand/orrelatedtoimplementationof aRAPorwellabandonmentrequiresrecordationofanycovenantorrestrictionapplicable totheRealProperty,SellershallpromptlyfurnishnoticeofsametoBuyer,andBuycr shallensurethatsaidcovenantorrestrictionisrecordedassoonasfeasible.Seller acknowledgesthatBuyer’sacceptanceandrecordingofanycovenantsorrestrictions mustbeapprovedbytheStatefundingagencies,intheirsoleandabsolutediscretion. (ii)AftertheCloseofEscrow,Buyershallberesponsibleatalltimesto ensurethattheuseoftheRealPropertyandanyactivitythereonisconsistentwith(a) ViTMNo.17609,includingbutnotlimitedtotheprovisionsforNeighborhoodTrails andKeyVistaImprovements,(b)useoftheRealPropertyonlyforpermanentdeed- restrictedopenspace/parkresourceconservationpurposesandrelatedpassive recreationaluses.(c)anyadditionalHabitatImprovementsundertakenpursuantto Paragraph20(a).(d)theLicenseAgreement,and(e)anyrestrictionsrelatingto remediationandwellabandonment.
(iii)AftertheCloseofEscrow.totheextentthatSellerandBuyerhavenot finalizedtheAccessRightsprovidedforunderParagraph121b)(v),theywillundertake besteffortstodosoassoonasreasonablyfeasible,andinalleventspriortotheapproval ofthefirstfinalsubdivisionmapasprovidedinsaidParagraph. (iv)BuyershallcooperateingoodfaithwithSellerinSeller’seffortstoobtain anygovernmentalpermitsandapprovalsapplicabletotheRealPropertyinordertocarry outanyHabitatImprovementssubjecttoParagraph20.RemediationObligations,well abandonmentandotherworkrequiredbytheConditionsofApprovalorotheragency approvals.Buyeracknowledgesthatithasnopre-revieworapprovalrightsorauthority otherthanasstatedintheConditionsofApproval(M.3,managemententitycontract)or asrequiredbyapplicablelaw;provided,however,thatSellershallprovideBuyerwith copiesofallfinalsubmittedapplicationsandpermits,andanyrelateddocumentation submittedtogovermnentalauthoritiesrelatedtoanysuchwork,forBuyer’sfiles. (v)ConsistentwiththeConditionsofApproval,Buyershallberesponsiblefor theoperation,maintenance,securityandinsurancefortheRealProperty,exceptingthe obligationsoftheManagementAgency,ifany,identifiedinConditionM.3ofthe ConditionsofApprovalandMitigationMeasure4.12-1g.Buyeragreesthattotheextent itmakesrepairs,alterations,relocations,orconstructionofanyimprovementsorfacilities ofanykindlocatedonorwithintheRealProperty(“Changes”),includingbutnotlimited totheconstructionofaparkinglotortrails,Buyerassumesfullresponsibilityforall approvalsandcoststhereof,includingbutnotlimitedtoanyobligationsthatmaybe requiredinconnectiontherewith;andprovidedfurther,thatBuyershallensurethatany suchChangesareconsistentwiththeusesandprovisionsofParagraph20(b)(ii).Upon Buyer’spurchaseoftheRealProperty,andsubjecttotheConditionsofApprovalandthis Agreement,Buyerassumesallliabilityfortheoperation,repair,maintenance,and securityoftheRealPropertyincludingallresponsibilityforanyinjuryordamagesto PersonsorpropertyassociatedwithBuyer’suseoroperationoftheRealProperty. 24 4823-5475-9323.v17
(vi)Tothefullestextentpermittedbylaw,Buyershallindemnify,defend(at Buyer’ssolecostandexpense),protectandholdharmlesstheSellerIndemnifiedParties fi-omandagainstanyandallClaims(includirig,withoutlimitation,Claimsforbodily injury,deathorpropertydamage),whichmayariseatanytimeafterthecloseofEscrow fromorinanymannerrelatedto(directlyorindirectly),orinconnectionwith,Buyer’s useandownershipoftheRealProperty(including,withoutlimitation,theuscoftheReal ProperlybythegeneralpublicoranycontractororconsultantretainedbyBuyer)orany activitiesiiiconnectionwiththeexerciseofsaidrightsOfltheRealProperty.
Notwithstandingtheforegoing,nothinghereinshallbeconstruedtorequireBuyerto indemnify,defend,protect,orholdharmlessaSellerIndemnifiedPartyfromeither(1) anyClaimarisingfromtheactivenegligenceorwillfulimsconductofanIndemnified Party.(2)anyClaimarisingfromdefectiveworkbyanyIndemnifiedParty,whether latentorpatent,oranyunsafeconditioncausedorcreatedbyanyoftheIndemnified Parties,or(3)anyClaimarisingfromorrelatedtoSeller’spost-closingworkrequiredby theConditionsofApprovalormitigationmeasures.Subjecttotheaforesaidlimitations, thedutytodefendhereunderiswhollyindependentofandseparatefromthedutyto indemnify,andsuchdutytodefendexistsregardlessofanyultimateliabilityofSelleror anyIndemnifiedPartyandsuchdefenseobligationshallariseuponpresentationofa ClaimbyanyIndemnifiedPartythatiswithinthescopeofBuyer’sdefenseand indemnityobligationandwrittennoticeofsuchClaimbeingprovidedtoBuyer.Payment toBuyerbyanyIndenmnifiedPartyorthepaymentoradvanceofdefensecostsbyany IndemnifiedPartyshallnotbeaconditionprecedenttoenforcingsuchanIndemnified Party’srightstoindemnificationhereunder.Buyer’sindemnificationobligationsare SurvivingObligations.BuyerassumesallriskandliabilityfordamagetotheReal PropertyfromuseoftheRealPropertybythegeneralpublic,andinjurytopersonal propertyandiorPersons,in,upon,orabouttheRealProperty.
(vii)SpecificEnvironmentalReleaseandIndemnit.SUBJECTTOTHE CONDiTIONSOFAPPROVAL,BYACCEPTINGTiTLETOTHEREAL
PROPERTY,BUYER,FORITSELFANDALLBUYERRELATEDPARTIES,
RELEASESSELLERANDALLSELLERINDEMNIFIEDPARTIESFROMANY
CLAIMSRELATEDTNANYMANNERTOANYENVIRONMENTALCONDITiON
OFTHEREALPROPERTYARISINGAFTERTHECLOSINGDATE,EXCEPTFOR
MATTERSARISINGFROMORRELATEDTOSELLER’SPOST-CLOSINGWORK,
BUYERFURTHEREXPRESSLYWAIVESANYRIGHTSOFINDEMNIFICATTON.
CONTRIBUTION.REIMBURSEMENT,ORSIIvITLARRIGHTSAGAINSTSELLER
ANDSELLERINDEMNIFIEDPARTIESUNDERCERCLAORRCRA,FORANY
CLAIMSRELATEDINANYMANNERTOTHEENVIRONMENTALCONDITION
OFTHEREALPROPERTYARISINGAFTERTHECLOSINGDATE.EXCEPTFOR
MATTERSARISINGFROMORRELATEDTOSELLER’SPOST-CLOSINGWORK.
ADDITIONALLY,TOTHEFULLESTEXTENTPERMITTEDBYLAW,BUYER,
FORITSELFANDALLBUYERRELATEDPARTIES,SHALLINDEMNIFY,
DEFEND(ATBUYER’SSOLECOSTANDEXPENSE),PROTECTANDHOLD
hARMLESSSELLERiNDEMNIFIEDPARTIESFROMANDAGAINSTANYAND
ALLCLAIMSMADERELATEDTOTHEENVIRONMENTALCONDITIONOF
THEREALPROPERTYARISINGAFTERTHECLOSINGDATE,EXCEPTFOR
MATTERSARiSINGFROMORRELATEDTOSELLER’SPOST-CLOSING
25 4823-5475-9323.vi7
WORK.SUCHCLAIMSSHALLINCLUDE,BUTARENOTLIMITEDTO,ANY
STRICTLTABIL1TYCLAIMS,INCLUDINGTHOSEU1DERCERCLA.INTHE
EVENTTHISRELEASEANDINDEMNITYPROVISIONiSJUDICIALLY
DETERMINEDTOEXCEEDTHATPERMiTTEDBYAPPLICABLELAW,THEN
THISINDEMNiTYPROVISIONSHALLBECONSTRUEDSOASTOPRESERVE
THEMAXIMUMINDEMNITYPERMITTEDThEREBY.THISRELEASEAND
iNDEMNITYPROVISIONiSASURVIVINGOBLIGATION.
21Condemnation,if,priortotheClosingDale,anyportionoftheRealPropertyistaken, oriftheaccesstheretoisrestricted,byanyAuthorityunderpowerofeminentdomainor otherwise(each,a“Taking”),oriftheRealPropertybecomessubjecttoapending,threatenedor contemplatedTakingwhichhasnotbeenconsummated,SellershallnotiBuyerofsuchfact promptlyafterSellerobtainsknowledgethereofIntheeventofanyTakingorpending, threatenedorcontemplatedTakingwhichwouldmateriallyandadverselyaffectthevalueofthe RealProperty(each,a“MaterialTaking”),inBuyer’sreasonabledetermination,Buyershall havetheoptiontoterminatethisAgreementuponwrittennoticetoSellergivennotlaterthan fiulcen(15)BusinessDaysafterreceiptofSeller’snotice.lfthisAgreementissoterminated,the provisionsofParanraph12(d)shallapply.IfBuyerdoesnottimelyexerciseitsoptionto terminatethisAgreementwithrespecttoaMaterialTaking,orintheeventofaTakingthatis notaMaterialTaking,upontheCloseofEscrowSellershallassignandturnover,andtheBuyer shallbeentitledtoreceiveandkeep,allawardsforanysuchTakingwhichaccruetoSellerand thePartiesshallproceedtotheCloseofEscrowpursuanttotermshereof,withoutmodification ofthetermsofthisAgreementandwithoutanyreductioninthePurchasePrice.Unlessoruntil thisAgreementisterminated,Sellershalltakenoactionwithrespecttothesettlementofany suchTakingproceedingwithoutthepriorwrittenapprovalofBuyer.Theprovisionsofthis Paragraph21arcintendedtosupersedeanyGovernmentalRegulationstothecontrary,whichare herebywaivedtothefullestextentallowablebylaw.
22.Casuah’..AftertheEffectiveDateandpriortoClosing,allriskoflossordamagetothe RealPropertyduetoearthquake,flood,lire,oranyothercasualtyevent(“Casua1tEvent”) shallbebornebySeller.However,thePartiesacknowledgeandagreethatSellerhasnodutyfor anyrestorationofanypropertyfollowingsuchaCasualtyEvent.IfSellerreceivesinformation priortoClosingthatanypartoftheRealPropertyhasbeendamagedbyanyCasualtyEvent, SellershallimmediatelynotifyBuyerofsuchfactandprovideBuyerwithallinformationand documentationinSeller’spossessionrelatingtoanysuchdamage.Ifthedamageisdeemed “MaterialDamage,”BuyershallhavetheoptiontoterminatethisAgreementuponwritten noticetoSellergivennotlaterthanfifteen(15)BusinessDaysafterreceiptofSeller’snotice. “MaterialDamage”shallmeananydamagewhichwouldmateriallyandadverselyaffectthe valueoftheRealProperty.IfthisAgreementissoterminated,theprovisionsofParagraph12(d) shallapplyandSellermayproceedwithdevelopmentofNeighborhoodIandNeighborhood3 underVTTMNo.17609andotherProjectapprovals.IfBuyerdoesnotexerciseitsoptionto terminatethisAgreement,thePartiesshallproceedwithClosingwithoutmodificationofthis Agreement.
23.Notices.AllnoticesrequiredorpermittedtobegivenpursuanttothisAgreementshall beinwriting,andshallbedeliveredeitherpersonally,byanationallyrecognizedovernight deliveryservice(suchas,butnotlimitedto,FederalExpressorUPS)orbyU.S.certifiedmail, 26 4823-5475-9323.v17
postageprepaid,return-receiptrequestedandaddressedtothePartiesattheirrespective addressesastheyappearbelow.Noticesmayalsobegivenbye-mailtransmissiontothec-mail addresseswhichappearbelow,providedthatacopyofthenoticeisalsosentbyoneoftheother above-describedmethodsofservice.Noticesdeliveredbyemailwillonlyheeffectiveifthe emailclearlyandprominentlystatesthatitisaneffectivenoticegivenunderthisAgreement.
ThePartiesmaychangetheiraddressesorc-mailaddressesfornoticebygivingnoticeofsuch changeinaccordancewiththisParagraph23.Noticessentbyovernightdeliveryserviceshallbe deemedreceivedontheBusinessDayfollowingthedateofdepositwiththedeliveryservice.
Mailednoticesshallbedeemedreceiveduponthedateofdeliveryshownonthereturn-receiptor onthethirdBusinessDayafterthedateofmailing.Noticessentbye-mailshallbedeemed servedonthedateoftransmission,providedthatsuchnoticesaresentpriorto5:00p.m.(Pacific Time)onaBusinessDay,andotherwiseonthenextBusinessDay.Notwithstandingthe foregoing,actualreceiptofnoticebyapartyshallconstitutenoticegiveninaccordancewiththis Agreementonthedatereceived,unlessdeemedearlierreceivedpursuanttothisPararaph23 ToBuyer:TheCityofFullerton
303W.CommonwealthAve.
Fullerton,CA92832
Attention;CityManager
E-Mail:cityrnanagercityoffullerton.corn
ToSciler:PacificCoastHomes
6001BollingerCanyonRoad,H1323
SanRamon,CA94583-2324
Attention:ivanJimencz
E-Mail:IJimenezchevron.com
WithCopyto:Rutan&Tucker,LLP
611AntonBoulevard,14thFloor
CostaMesa,CA92626
Attention:PeterJ.1-lowell,Esq.
E-mail:phowellrutan.com
PillsburyWinthropShawPittrnanLLP
FourEmbarcaderoCenter.22Floor
SanFrancisco,CA94111
Attention:RonaldE.VanBuskirk
E-mail:ronald.vanbuskirkpi1lsburylaw.com
ToEscrow1-lolder:FirstAmericanTitleCompany
Attention:
E-mail:
_______________
27 4823-5475-9323.vJ7
24.No
Brokers.EachPartyrepresentsandwarrantsthatithasnotengaged,andisnotaware oftheengagement
ofanybrokersorfindersinconnectionwiththetransactioncontemplatedby thisAgreement.Intheeventanyclaimsforbrokers’orfinders’feesorcommissionsaremadein connection
withthisAgreement,Buyershallindemnify,saveharmlessanddefendSellerand SellerIndemnifiedPartiesfromandagainstsuchclaims,iftheyarebaseduponanyact, statement,orrepresentationoragreementbyBuyer;andSellershallindemnify,saveharmless anddefendBuyerandeachBuyerRelatedPartyfromandagainstsuchclaimsiftheyarebased upon
anyact,statement,representation,oragreementbySeller.Theindemnificationprovisions ofthisParaeraph24areSurvivingObligations.
25.FurtherActions.BuyerandSelleragreetoexecutesuchinstrumentsanddocuments andtotakeallfurtheractionsrcasonablyrequiredtoconsummatethepurchaseandsale transactioncontemplatedherein.
26.LegalandEquitableEnforcement
of
this
Areemcnt.
(a)Default
bSeller.SELLERANDBUYERAGREETHAT,IFTHE
PURCHASEANDSALEOFTHEREALPROPERTYISNOTCOMPLETEDIN
ACCORDANCEWITHTHISAGREEMENTBECAUSESELLERMATERTALLY
DEFAULTSUNDERORMATERIALLYBREACHESTHISAGREEMENT,BUYERSHALL BEENTITLED,ASBUYER’SSOLEREMEDYTOTERMINATETHISAGREEMENTAND
UPONTERMINATIONTHEDEPOSIT(LESSTHEINDEPENDENTCONSIDERATION)
SHALLBERETURNEDTOBUYERANDSELLERSHALLPAYTOBUYERAN
AMOUNTEQUALTOBUYER’SDOCIJIvIENTEDTHIRDPARTYEXPENSESINCURRED TNCONNECTIONWITHBUYER’SDUEDILIGENCEINVESTIGATIONUNDERTHIS
AGREEMENT,BUTTNNOEVENTSHALLSUCHAMOUNTEXCEEDTWENTY-FIVE
THOUSANDDOLLARS(S25,000).THEPARTIESACKNOWLEDGETHATTHESE
DAMAGESHAVEBEENSPECIFICALLYNEGOTIATEDBETWEENTTIEMSELVESAND ARE,AMONGOThERTHINGS,TOCOMPENSATEBUYERFORiTSCOSTSAND
EXPENSESASSOCIATEDWITHTI-uSAGREEMENT.BUYERSPECIFICALLYWAiVES ANYANDALLRIGHT(1)TOFILEORRECORDANY
LIENORENCUMBRANCE
AGAiNSTTHEPROPERTY;(2)TOINCIDENTAL,CONSEQUENTIALORPUNITIVE DAMAGES;OR(3)TOSEEKSPECWICPERFORMANCEOFTHISAGREEMENTORTO RECORDANYLISPENDENS.THEFOREGOLNGSHALLNOTLIMiTBUYER’S
REMEDIESWITHRESPECTTO(i)SELLER’SiNDEMNIFICATIONOBLIGATIONS UNDERTHISAGREEMENT,AND(ii)SELLER’SOBLIGATIONSWITHRESPECTTO THERETURNOFTHEDEPOS1TTOBUYERUPONTHETERMINATIONOFTHIS
AGREEMENTPURSUANTTO
ANYPROViSIONHEREOF.NOTWITHSTANDING
ANYTHINGINTHISAGREEMENTTOTHECONTRARY,SELLERSHALLNOTBETN DEFAULTWIT!IRESPECTTOANYOFITSOBLIGATIONSHEREUNDERUNLESSAND UNTILSELLERRECEIVESNOTiCEFROMBUYERSPECIFYINGSUCHDEFAULTAND SELLERFAILSTOCURESUCHDEFAULTWTTHINFIVE(5)DAYSAFTERRECEIPTOF
SUCHNOTICE,EXCEPTTHATNOSUCHNOTICEORCUREPERIODSHALLAPPLY
TOADEFAULTBYSELLERWHICHIS
THEFAILURETOCLOSETHETRANSACTION
28 4823-5475-9323.’17
ONTHECLOSfNGDATE)
BUYERSINITIALSSFLLSINITIAlS
(b)DefaultbyBuyer.INTIlEEVENTTHATTHECLOSEOFESCROWDOES
NOTOCCURBYREASONOFANYDEFAULTOFBUYER,SELLERSHALLHAVETIlE REMEDYSETFORTHINPARAGRAPH3(e).NOTWITHSTANDINGANYTHINGIN
THISAGREEMENTTOTHECONTRARY,BUYERSHALLNOTBEINDEFAULTWITH RESPECTTOANYOFITSOBLIGATIONSHEREUNDERUNLESSANT)UNTiLBUYER
RECEIVESNOTICEFROMSELLERSPECIFYINGSUCHDEFAULTANDBUYERFAILS TOCURESUCHDEFAULTWiThINFIVE(5)DAYSAFTERRECEIPTOFSUCH
NOTICE,EXCEPTTHATNOSUCHNOTICEORCUREPERIODShALLAPPLYTOA
DEFAULTBYBUYERWHICHISTHEFAILURETOCLOSETHETRANSACTIONON
THECLOSiNGDATE.
__
iv
BLYLRSINITIALSSFiU5[NIUIS
27.Assininent.NeitherPartymayassignthisAgreement,oranyrightshereunder,without thepriorwrittenconsentoftheotherPartywhichtheotherPartymaygrantorwithholdinits soleandabsolutediscretion;provided,however,thatSellermayassignitsrightsandobligations underthisAgreementtoitsAffiliateswithoutthepriorwrittenconsentofBuyer.Noassignment willreleaseBuyerfromitsobligationshereunder.
28.GovernjnLawandResolutionofDisputes.
(a)GoverningLaw.ThisAgreementisgovernedbyandinterpretedinaccordance withthelawsoftheStateofCalifornia,withoutregardtoitschoiceoflawrules. (b)ResolutionofDisputes.ThePartiesshallexclusivelyandfinallyresolveany Disputebetweenthemusingdirectnegotiations,mediation,andthenarbitrationassetoutinthis Parauraph28,exceptaspermittedinParagraph28(e)(vii).
(e)DirectNegotiations.IfaDisputearises,aPartyseekingtoinitiatethedispute resolutionprocessshallgivenoticetotheotherPartysettingout,inwritingandindetail,the issuesinDisputeandthevalueoftheClaim.ThePartiesshallattempttoresolvetheDispute throughdirectnegotiationsinameetingbetweentheParties,attendedbyindividualswith decision-makingauthority,whichmusttakeplacewithin30days,orasotherwiseagreedtoby theParties,fromthedatethenoticewassent.
(d)Mediation.IftheDisputecannotberesolvedbydirectnegotiationswithin30 daysofinitiationoftheresolutionprocess,eitherPartymayinitiatenon-bindingmediationby givingnoticetotheotherParty.Themediationshallbeattendedbyarepresentativefromeach Partywithdecision-makingauthority,andtheproceedingshalltakeplaceinOrangeCounty, California,beforeaneutralmediatorselectedbymutualagreementofthePartiesunderthe JAMSmediationprocedures.
29 4523-5475-9323.vI7
(e)ArbitrationProceedin2s.IfthePartiesfailtoresolvetheDisputewithin60days fromnoticeofmediation,eitherPartymayinitiateprivatebindingarbitrationbygivingnoticeto theotherParty.ThearbitrationwillbeconductedundertheJAMSStreamlinedArbitration RulesandProcedures(“JAMSRules”),includingtherulesforselectionofarbitrators.Tothe extentofanyconflictsbetweentheJAMSRulesandtheprovisionsofthisAgreement,the provisionsofthisAgreementshallprevail.ArbitrationproceedingsshallbeconductedinOrange County,California.Thefollowingprovisionsshallapplytoanyarbitrationproceeding:
(i)Thearbitrationshallbeconductedbeforeasingleneutralarbitrator,unless theamountindisputeismorethan$1,000,000,iiiwhichcasethemattershallbe conductedbeforethree(3)neutralarbitrators.IfthePartiesdisagreeastotheamountin dispute,themattershallbeheardbythree(3)arbitrators.
(ii)ThemaximumnumberofwitnesseseachPartymaycalltogiveevidence onitsbehalf,includingbyoraltestimony,declarationorwitnessstatement,isfive(5)fact witnessesandthree(3)expertwitnesses.
(iii)TheexistenceofaDisputeandanynegotiations,mediation,and arbitrationproceedingsbetweenthePartiesrelatingtoanyDisputeshallbekept confidential,andthePartiesshallnotmakeanydisclosurethereoftoanythirdparty exceptasmayherequiredbylaw.Anyinformation,documents,ormaterials,createdor producedforthepurposesof,orusedin,negotiations,mediation,orarbitrationofa DisputeshallbekeptconfidentialandthePartiesshallnotdisclosethemtoanythird partyunlessrequiredbylaw(butinthateventdisclosuremustbelimitedtotheextent necessarytocomplywithlaw),ortotheextentnecessarytoenforceorchallengean awardbeforeastatecourtorotherjudicialauthority.
(iv)Thearbitrator(s)shallnothavethepowertoawardanydamageswaived andreleasedunderParagraph13(d).Thearbitrator(s)shallhavenoauthoritytoappoint orretainexpertwitnessesforanypurposeunlessagreedtobytheParties. (v)RegardlessofwhichPartyprevails,allarbitrationfeesandcostsshallbe borneequallybytheParties,andeachPartyshallbearitsowncostsoflegal representation,witnessexpenses,andancillarycosts.
(vi)Thearbitrationawardshallbefinalandbinding,andexceptfor proceedingsunderParagraph28(e)(viii),thePartiesagreetowaivetheirrightsto:(1) applytoanycourtfordeterminationofapointoflaworfact,and(2)takeanyformof appeal,revieworrecourseinrespectofanysuchawardtoanycourtorotherjudicial authority,totheextentthatsuchwaivermaybevalidlymade.
(vii)ThePartiesmayapplytoacourtwithappropriatejurisdictionforanyof thefollowingwithoutwaivingtheirarbitrationrights:
(1)Interimmeasuresasnecessaryuntilappointmentofthe
arbitrator(s)orpendingdeterminationbythearbitrator(s).
30 4823-5475-9323.vl7
(2)PreservingRealPropertypendingdeterminationbythe
arbitrator(s).
(3)Enforcingjudgmententeredonanaward.
(4)EnforcingParauraph28(e)(iii)andpreventinganyinformation, documentsormaterialsusedinthoseproceedingsfrombeingusedordisclosedby thatPartyforanypurposeotherthanenforcementofParagraph28(e)(iii). (viii)Judicialproceedingsto(I)preserveRealPropertypendingdetermination bythearbitrator(s),(2)enforceParaaraph28(e)(iii),or(3)enforcejudgmententeredon anarbitrationawardmaybebroughtinanycourthavingjurisdictionoverthePersonor assetsofthenon-prevailingParty.TheprevailingPartymayseek,inanycourthaving jurisdiction,judicialrecognitionoftheaward,ororderofenforcementoranyotherorder ordecreethatisnecessarytogivefulleffecttotheaward.
29.Miscellaneous.
(a)ConifictofInterest.Nodirector,employeeoragentofBuyeroranyBuyer RelatedPartymayenterintoanybusinessarrangementwithanydirector,employeeorageniof SelleroritsAffiliate(otherthanasarepresentativeofSeller)withoutSeller’spriorwritten consent.
(b)ForceMajeure.EachofthePartiesshallbeexcusedfromperformanceofits obligationshereunderandshallnotbedeemedtobeindefaultifitsperformanceispreventedby (i)fire,earthquake,flood,explosion,drought,tidalwave,actofGod,war,threatofwar, hostilities,invasion,actofforeignenemies,mobilization,requisition,embargo,actsorthreatsof terrorism,pandemic,riot,rebellion,revolution,insurrection,militaryorusurpedpower,civil commotionorwar,strike,goslow,lockoutorotherlabordisputeordisorder,shortagesoflabor ormaterials,anychangeinapplicablelaws,ordinances,rulesorregulationsadverselyaffecting suchParty’sobligations,delaysinobtainingnecessaryapprovalsorconsentsfromAuthoritiesor otherregulatoryconflictorevents,orotheroccurrenceorconditionofalikenaturebeyondthe reasonablecontrolofsuchParty;or(ii)anylaw,ordinance,rule,regulationororderofany publicormilitaryauthoritystemmingfromtheexistenceofeconomiccontrols,not,hostilities, war,threatofwar,terroristact,threatofterroristact,pandemicorgovernmentalpolicy (hereinafter,a“ForceMajeureEvent”).TnnoeventshallaForceMajeureEventbedeemedto resultfromfinancialdifficulties.IntheeventthateitherPartyheretoisorwillbedelayedor hinderedorpreventedfromtheperformanceofanyactrequiredhereunder(otherthanthe paymentofamountsdueunderthisAgreement)byaForceMajeureEvent,thenperformanceof anysuchactwillbeexcusedfortheperiodofthedelayandtheperiodfortheperformanceof anysuchactwillbeextendedforaperiodequivalenttotheperiodofsuchdelay. (c)SuspensionandTermination.PriortoCloseofEscrow,ifSellerprovidesa noticeofsuspensionorterminationunderConditionN(SuspensionorTerminationof’ Obligations)oftheConditionsofApproval,atSeller’soptionallrightsandobligationsarising outofthisAgreementmaybeterminated.
31 4823-5475-9323.vI7
(d)PartialTnvalidit.IfanytermorprovisionofthisAgreementortheapplication thereoftoanyPersonorcircumstanceshall,toanyextent,beheldinvalidorunenforceable,the remainderofthisAgreement,ortheapplicationofsuchtermorprovisiontoPersonsor circumstancesotherthanthoseastowhichitisheldinvalidorunenforceable,shallnotbe affectedthereby,andeachsuchtermandprovisionofthisAgreementshallbevalidandhe enforcedtothefullestextentpermittedbylaw.
(e)Waivcrs.Nowaiverofanybreachofanycovenantorprovisionhereinshallbe deemedawaiverofanyprecedingorsucceedingbreachthereof,orofanyothercovenantor provisioncontainedherein.Noextensionoftimeforperformanceofanyobligationoractshall bedeemedanextensionoftimeforperformanceofanyotherobligationoract. (1)SurvivalofRepresentations.WarrantiesandCovenants.Therepresentations andwarrantiesmadehereinwillsui’ivetheCloseofEscrowandvillnotmergeintotheDeed.
Notwithstandingtheforegoing,noactionmayhebroughtforthebreachoftherepresentations, warrantiesandcovenantssetforthinParagraphs9and10morethansix(6)monthsafterthe CloseofEscrow.
(g)SuccessorsandAssigns.SubjecttotheprovisionsofParagraph27.this Agreementshallbebindinguponandshallinuretothebenefitofthesuccessorsandassignsof thePartieshereto.
(h)EntireAjreerncnt.ThisAgreement(includingallexhibitsattachedhereto)isthe finalexpressionof,andcontainstheentireagreementbetween,thePartieswithrespecttothe subjectmatterhereofandsupersedesallpriorunderstandings(includinganyso-called“term sheets”or“lettersofintent”)withrespectthereto.ThisAgreementmaynotbemodified, changed,oramended.exceptbywritteninstrumentsignedbyauthorizedrepresentativesofboth Parties.
(i)NoThird-PartsBenefit.ThisAgreementisforthebenefitofthePartiesonly (andtheSellerIndemnifiedPartiesandtheBuyerRelatedParties),andisnotintendedtoand shallnotconferanyrightsorbenefitsuponanyotherPerson.
(j)Construction.Paragraphheadingsaresolelyforconvenience,andarenotapart ofthisAgreement.WheneverrequiredbythecontextofthisAgreement,thesingularincludes theplural,themasculineincludesthefeminineandtheneuter,andviceversa.Theword“or”is notexclusive,andtheword“includes”and“including”arenotlimiting.ThisAgreementwill notbeconstruedasifitbadbeenpreparedbyoneoftheParties,hutratherasifbothPartieshad preparedthesame.Unlessotherwiseindicated,allreferencestoParagraphs(andSubparagraphs) aretoParagraphs(andSubparagraphs)ofthisAgreement,andareferencetoaParagraph includesalloftheindividualparagraphswithintheprovisioncited.Allexhibitsreferredtoin thisAgreementareattachedandincorporatedbythisreference.Referencesto“days”herein meanscalendardays,unlessotherwisespecified.hitheeveiitthedateonwhichBuyerorSeller isrequiredtotakeanyactionunderthetermsofthisAgreementisnotaBusinessDay,theaction willhetakenonthenextsucceedingBusinessDay.Allperiodsoftimereferredtohereinare calculatedbyexcludingthefirstdayandincludingthelastday.EachPartyhasparticipatedin thedraftingofthisAgreementandhashadtheopportunitytoconsultwithlegalcounselandany 32 4823-5475-9323.vl7
other
advisors
of
its
choice
to
its
satisfaction
regarding
theterms
and
provisions
of
this
Agreement.
As
a
result,
the
rule
of
construction
that
an
agreement
be
construed
against
the
drafter
mustnot
be
asserted
or
applied
to
this
Agreement.
(k)Counterparts:ElectronicSignatures.
This
Agreement
may
be
executedin
one
(1)
or
more
counterparts,
each
of
which
shall
be
deemed
to
be
an
original,
but
all
of
which
together
shall
constitute
one
(1)
and
the
same
instrument.
Copies
of
signatureson
documents
transmitted
by
email
shall
be
binding
on
the
Partics,
but
the
Parties
shall
deliver
originals
of
any
documents
with
signatures
seilt
in
sich
manner
promptly
thereafter.
It
is
undcrstood
and
agreed
that
certain
closing
documcnts
may
not
he
delivered
electronically.
(I)
Relationshipofthe
Parties.
This
Agreement
is
not
intended
to
create
normay
this
Agreement
be
construed
as
creating
between
the
Parties,
a
partnership,
jointventLLre
or
association
ofany
kind.
(in)SeverabilitsandSavings.If
any
provision,
or
part
of
aprovision,
as
applicable,
of
this
Agreement
is
determined
to
be
invalid
or
unenforceable
by
a
court
or
arbitrator
of
competent
jurisdiction,
the
invalidity
or
unenforceahility
will
not
affect
the
other
provisions
of
this
Agreement
and
all
provisions
not
affected
by
such
invalidity
or
unenforceability
will
remain
in
full
force
and
effect.
The
offending
provision,
or
part
of
the
provision,
as
applicable,
will
be
modified
to
be
valid
and
enforceable
while
achieving
to
the
greatest
possible
extent,
the
economic,
legal
and
commercial
objectives
of
the
invalid
or
enforceable
provision;
provided,
however,
if
such
modification
is
not
possible,
then
the
provision
will
be
severed
and
treated
as
if
it
were
never
apart
of
this
Agreement.
(n)DataPrivac.
Seller
and
Buyer
agree
that
it
is
not
anticipated
that
any
personal
data
vill
be
processed
by
Buyeron
behalf
of
Seller
or
the
Seller
Indemnified
Parties
under
or
as
aresult
of
this
Agreement,
other
than
as
contained
within
the
terms
of
this
Agreement.
If
Buyer
begins
toPTOCCSS
personal
data
on
behalf
Seller
or
the
Seller
Indemnified
Parties,
then
Buyer
shall
immediately
notif
Seller
and
the
Parties
will
amend
this
Agreement
to
incorporate
appropriate
data
protection
provisions
into
this
Agreement.
(o)RecordsandInspection.
Up
until
twenty-four
(24)
months
from
the
end
of
the
calendar
year
in
which
this
Agreement
is
completed
or
terminated
(1)
Buyer
shall
ensure
that
each
Buyer
Related
Party
retain
all
records
related
to
this
Agreement
and
(2)
Seller
may
inspect
at
any
time
all
records
to
confirm
that
the
requirements
of
the
Agreement
are
met.
3 4823-5475-9323vl7
INWITNESSWHEREOF,thePartiesheretohaveexecutedthisAgreementasol’the datesindicatedbelow.
BUYERSELLER
THECITYOFFULLERTON,amunicipalPACIFICCOASTHOMES,aCalifornia corporationcorporation
___By:___
its:
__________________
Its:V1C-iES1PEst
Dated:‘ç1117,2020Dated:(JUi’7’2...O,2020
34 4823-5475-9323.vl7
GLOSSARYOFTERMS
AsusedinthisAgreement,thefollowingcapitalizedtermshavethefollowingmeanings:
“AccessRights”:HasthemeaningsetforthinPira_grph12(b)(vi). “Affiliates”:Allsubsidiaries,divisions,affiliatedcompanies,andparentcorporationof Seller.
“Agreement”:Hasthemeaningsetforthin(heintroductoryParagraph. “ApprovedTitleConditions”:HasthemeaningsetforthinParaLrph8. “Authorities”or“Authorit“:Anyfederal,stateorlocalgovernmentalorquasi— governmentalbodiesoragencieshavingjurisdictionovertheRealProperty,including,without limitation,theStateofCalifornia,theCountyofOrange,and(heCityofFullerton. “BusinessDa“:AnydayotherthanaSaturday,Sunday,legalholidayoranydayon whichtheCityofFullertonisclosed.
“Buyer”:HasthemeaningsetforthintheintroductoryParagraph,andincludesany assigneeapprovedbySeller.
“BuerDisclosureSchedule”:HasthemeaningsetforthinParagraph12(b)(ii). “BuserIndemnifiedParties”:HasthemeaningsetforthinParaaph20(a). “BuserRelatedParts“:HasthemeaningsetforthinParagraph13(d. “Bucr’sTitleObjections”:HasthemeaningsetforthinParagraph12(a)(i)(B). “CashEquivalent”:Afederalwiretransferoffunds.
“CasualtEvent”:HasthemeaningsetforthinParagraph22.
“Changes”:HasthemeaningsetforthinParagraph20(b)(vl.
“Claims”:Anyliability,loss,demand,damage,Encumbrance/Lien,causeofactionof anykind,order,subpoena,obligation,cost,royalty,fee,assessment,duty,requirement,charge, penalty,fine,judgment,interest,andaward(includingrecoverablelegalcounselfeesandcostof litigationofthePersonassertingtheclaim),whetherarisingbylaw,contract,tort,voluntary settlement,orinanyothermanner.
“CloseofEscrow”or“Closing”:ThedatethattheDeedisrecordedintheOfficial Records.
“ClosingDate”:ClosingshalloccurnolaterthanDecember19,2020. 35 48235475-9323.v17
“ConditionsofApproval”:HasthemeaningsetforthinRecitala. “ConservationEasement”:1—lasthemeaningsetforthinParagraph12(b)(iv). “Contintenc’Date”:Thedatewhichisten(10)calendardayspriortotheClosingDale. “Deed”:HasthemeaningsetforthinParagraphI4(a(i).
“Deposit”:HasthemeaningsetforthinParagraph3(a.
“DisclosureReport”:Seller’sreportof(a)writtennoticeofanypendingorthreatened actions,suits,arbitrations,claimsorproceedings,atLaworinequity,affectingtitletoor possessionoftheRealProperty;(b)writtennoticefromanyAuthoritythattheRealPropertyis inviolationofanyGovernmentalRegulations;and(c)otherdisclosurespursuanttothe DisclosureStatutes.
“DisclosureStatutes”:HasthemeaningsetforthinParagraph4. “Dispute”:AnyClaim,disagreement,disputeorcontroversyarisingoutofthis AgreementortheperformanceofanyobligationsunderthisAgreement,includingaClaimunder thisAgreementandanydisputeorcontroversyregardingtheexistence,construction,validity, interpretation,enforceability,terminationorbreachofthisAgreement,whetherbasedin contract,tortorinanyothermanner.
“Due-Dilhi.enceMaterials”:HasthemeaningsetforthinPararapi,consistingof ExistingReportsandNewReportsasdefinedtherein.
“EffectiveDate”:ThedatethatthisAgreementissignedbythelasttosignofSellerand Buyer,asreflectedbeneaththeirrespectivesignatures.
“EncumbranceILien”:Anycharge,encumbranceorsimilarrightavailabletocreditors atlawtosecuredebtsowedtothem.
“EnvironmentalCondition”:AconditionorcircumstancerelatingtotheRealProperty whichisorisallegedtobenotincompliancewithEnvironmentalLaw. “EnvironmentalLaws”:Allfederal,stateandlocallaws,commonlaw,regulations, codes,policies,guidancedocuments,rules,andordinancesrelatingtopollution;theprotectionof theenvironment;therelease,emission,discharge,ordisposalofanymaterialorchemical substance;humanhealthorsafety;HazardousMaterials;naturalresourcedamage;product registration;hazardcommunication,eachasfromtimetotimehasbeenormayheamendedor adoptedbeforeoraftertheEffectiveDate,including,butnotlimitedto,anyofthefollowing:
TheOccupationalSafetyandHealthAct,29U.S.C.A.§651,etseq.;theResourceConservation andRecoveryAct,42U.S.C.A.§6901,etseq.;theComprehensiveEnvironmentalResponse, Compensation,andLiabilityAct(“CERCLA”),42U.S.C.A.§9601,etseq.;theCleanWater Act,33U.S.C.A.§1251etseq.;theCleanAirAct,42U.S.C.A.§7401,etseq.;theSafeDrinking WaterAct,42U.S.C,A.§3001,Ctseq.;theToxicSubstancesControlAct,15U.S.C.A.§2601ci seq.;theOilPollutionActof1990,33U.S.C.A.§2701etseq.
36 4823-5475-9323.yl7
“ERISA”:HasthemeaningsetforthinParagraph9(a)(vi).
“Escrow”:TheescrowopenedwithEscrowHolderfortheconsummationofthe transactiondescribedinthisAgreement.
“EscrowHolder”:FirstAmericanTitleCompany.
“Existin2Reports”:HasthemeaningsetforthinParagraph7.
“FIRPTACertificate”:HasthemeaningsetforthinParagraphI4(a)(iii’. “ForceMajeureEvent”:HasthemeaningsetforthinParagraph29(b). “Form1099S”:HasthemeaningsetforthinParagraph14(g)fy).
“GovernmentalRegulations”:Anyapplicablelaws,statutes.ordinances.niles, requirements,orders,resolutions,policystatementsandregulations(including,without limitation,thoserelatingtolanduse,subdivision,zoning,andHazardousMaterials),ofthe Authoritiesbearingontheconstruction,maiiitcnance,use,operation,managementorownership oftheRealProperty.
“HabitatImprovements”:HasthemeaningsetforthinParagraph20(a). “HazardousMaterials”:Anychemicalsubstance,product,waste,orothermaterial whichis.orbecomesidentified,listed,published,regulated,ordefinedas,orwhichshowsthe characteristicsof,ahazardoussubstance,hazardouswaste,hazardousmaterial,toxicsubstance, orotherregulatoryterm,includingoil,oilwaste,by-productsandcomponents,naturally occurringradioactivematerials,hydrocarbons,andhydrocarbonswaste,producedwater,by productsandcomponents,polychlorinatcdbiphenyls,andasbestos,orwhichisotherwise regulatedorrestrictedunderanyEnvironmentalLaworbyanygovernmentauthority,orwhich mayotherwisecause,contributeto,orresultinanEnvironmentalCondition. “IndependentContractConsideration”:HasthemeaningsetforthinParagraph3(d). “InitialTrails”:InitialTrailImprovementsassetforthintheConditionsofApproval. “Inspections’:HasthemeaningsetforthinPggraph6(a).
“LicenseAgreement”:HasthemeaningsetforthinParagraph141a)(ii). “LiquidatedDamages”:HasthemeaningsetforthinParagraph3(c). “MaterialDamage”:HasthemeaningsetforthinParagraph22.
“MaterialTaking”:HasthemeaningsetforthinParagraph21.
“MonetarObligations”:Anyandallliensandencumbrancesvoluntarilyplaced,or voluntarilycausedtobeplacedofrecordagainsttheRealProperty,evidencinganobligation whichcanbesatisfiedbythepaymentofmoney,including,withoutlimitation,delinquentreal 37 4823-5475-9323.vl7
propertytaxesandassessments,deedsoftrustandmortgages,andmechanicliens,butexcluding thelienofnon-delinquentrealpropertytaxesandassessments,andincludinganymechanics liensplacedofrecordagainsttheRealPropertywhichresultfromanyworkwhichSelleris obligatedtoperformunderthisAgreement.
“Neighborhood1”:TheareaidentifiedasNeighborhoodIasgenerallydepictedon ExhibitA.
“NigliborhoodINotice”:hasthemeaningsetforthinParagraph3(b). “Neighborhood3”:TheareaidentifiedasNeighborhood3asgenerallydepictedon ExhibitA.
“Neighborhoods”:HasthemeaningsetforthinRecitala.
“NewReports”:I-lasthemeaningsetforthinParagraph7.
“NewTitleMatters”:FIasthemeaningsetforthinParagraph12(a)(i)(C). “OFAC”:HasthemeaningsetforthinParagraph9(a)(vii).
“OfficialRecords”:TheOfficialRecordsoftheCountyofOrange.StateofCalifornia. “OpeningofEscrow”:ThedateonwhichafuilyexecutedcopyofthisAgreementis deliveredtoEscrowHolderbySellerassetforthinParagraph11(a).andEscrowHolderhas acknowledgeditsobligationshereLinderbysig1ingacopyhereofintheplaceprovidedbelow. “Owner’sTitlePolicy”:AstandardCLTAowner’spolicyoftitleinsuranceassetIorth inParagraph12(a)(i’).
“OtherCovenants”:HasthemeaningsetforthinParagraph8ofthisAgreement. “Party”or“Parties”:HasthemeaningsetforthintheintroductoryParagraph. “Person”:Anindividual,corporation,partnership(limitedorgeneral),limitedliability company,limitedliabilitypartnership,trust,orotherformofassociationorentity. “ProhibitedPerson”:HasthemeaningsetforthinParagraph9(a)(vii). “ProjectSite”:HasthemeaningsetforthinRecitala.
“Project”:HasthemeaningsetforthinRecitalb.
“PurchasePrice”:HasthemeaningsetforthinParagraph2.
“RAPs”:HasthemeaningsetforthinParagraph2.
“RealPropert“:ThatlandsituatedintheCityofFullerton,OrangeCounty,California, asdescribedinExhibit1toExhibitAhereto,identifiedas“Parcel1”therein(consistingof 38 4823-5475-9323.vl7
approximately10.4acres)(alsokiownas“Neighborhood1”)and“Parcel3”therein(consisting ofapproximately13.7acres)(alsoknownas“Neighborhood3”)inVTTMNo.17609,withall improvementsthereon.andappurtenanteasements,hcreditaments,rights,rightsofway,rightsto adjacentstreets,alleysandrightsofway,includinglanduseentitlementsandotherrightswhich “runwiththeland”intheStateofCalifornia.
“Reu1atorvAgency”:AnygovernmentalagencythathasjurisdictionovertheReal Propertyand/orovertheRernediationObligationsorHabitatObligations,includingbutnot limitedtotheUnitedStatesEnvironmentalProtectionAgency,theUnitedStatesFishand WildlifeService,theOrangeCountyHealthCareAgency,theDivisionofOil,Gasand GeothermalResources,theCaliforniaDepartmentofFishandWildlife,theSouthCoastAir QualityManagementDistrict,andtheSantaAnaRegionalWaterQualityControlBoard. “ReniaindcrProperl“:TheremainderoftheProjectSiteasgenerallydepictedon ConditionsofApprovalExhibit1:WestCoyoteHillsTrailsandKeyVistaImprovementPhasing PlantoVTTMNo.17609.
“RemediationObligations”:ObligationsandactivitiessetforthintheConditionsof Approval,includingStandardCondition25.
“Seller”:HasthemeaningSetforthintheintroductoryParagraph. “SellerDisclosureSchedule”:HasthemeaningsetforthinParagraphl2(a)(iii). “SellerindemnifiedParties”or“IndemnifiedParties”:SellerandSeller’s shareholders,andtheirconstituentofficers,directors,shareholders,membersandpartners.and theagents,employeesandrepresentativesofeachoftheforegoing,midanylenderstoSeller,and theirrespectiveheirs,successorsandassigns.
“SurvivintOblitjations”:Thoseobligationswhichbytheexpresstermsofthis Agreementsurvivethe(‘loseofEscrowortheterminationofthisAgreement. “Taking”:HasthemeaningsetforthinParagraph21.
“TitleCompan”:FirstAmericanTitleCompany.
“TitleReport”:HasthemeaningsetforthinParagraph12(a)(i)(A). “TrailNistaPointimprovements”:NeighborhoodTrailsandKeyVistaImprovements assetforthintheConditionsofApproval.
“UtilitImprovements”:1-lasthemeaningsetforthinPararaphl2(b(vi). “VTTMNo.17609”:HasthemeaningsetforthinRecitala.
“VTTMCovenants”:HasthemeaningsetforthinParagraph8ofthisAgreement. 39 4823-5475-9323.vI7
“WCHPreserve”:HasthemeaningsetforthintheConditionsofApprovaland mitigationmeasures,asusedinParagraph20(a)ofthisAgreement. 40 4823-5475-9323.vl7
ESCROWHOLDER:
TheundersignedEscrowHolderherebyacknowledgesreceiptofthisAgreement (includingtheJointEscrowInstructionscontainedherein)andagreestoactasEscrowHolder underthisAgreementinstrictaccordancewithsuchescrowinstructions,andanyadditionalor supplementalescrowinstructionsexecutedbytheparties.
FIRSTAMERiCANTITLECOMPANY
By
41 4823-5475-9323.vl7
EXHIBITA
FORMOFGRANTDEED
FORVALUABLECONSIDERATION,receiptofwhichisherebyacknowledged, PacificCoastHomes,aCaliforniaCorporation,hereinaftercalled“Grantor,”herebygrantsand conveystotheCityofFullerton,hereinaftercalled“Grantee,”alloftheGrantor’srights,title andinterestincertainrealpropertyintheWestCoyote1-lills.CityofFullerton,Countyof Orange,California(“RealProperty”),asdescribedonExhibit1hereto,andinaccordancewith thatcertainAgreementforthePurchaseandSaleofRealEstate(“PurchaseAgreement”) effectiveasof,2020.
PROVIDEDTHAT:SaidRealPropertyshallbepermanentlyrestrictedforpassive open-space/parkresourceconservationpurposesinaccordancewiththeConditionsofApproval (“ConditionsofApproval”)ofVestingTentativeTractMapNo.17609,approvedbytheCityof FullertononNovember15,2015(“VTTMNo.17609”).
EXCEPTINGANDRESERVINGUNTOGRANTOR,ITSSUCCESSORSAND
ASSIGNS,THEEXCLUSIVEOWNERSHIPOFAND/ORRIGHTSTOTHE
FOLLOWTNG:
1.TherighttoaccesssaidRealPropertyatorbelowthesurfaceinareasonable mannertoperformanyhabitatpreservationorimprovement,anyenvironmentalinvestigationor remcdiationrelatingtopre-existingcontaminationorwellabandonments,oranyotherworkon theRealPropertythatmayherequiredofGrantor,oritssuccessorsorassigns,under\ITTMNo. 17609,thePurchaseAgreement,oranyotherorderorconditionimposedbyagovernmental agency.
PROVIDEDFURTHERTHAT:Grantee,foritselfandonbehalfofanysuccessors andassigfls,covenantsandagreesthat:
1.Granteeshallrecordanycovenantorrestrictionrequiredbyanyregulatory agencywithjurisdictionovertheRealPropertyinconnectionwithand/orrelatedto implementationofaRAPorwellabandonment.
2.GranteeshallnotinstallatorontheRealPropertyanywellsorfacilitiesforthe productionofanyMineralsoranyGroundwaterorGeothermalResources(whetherfordrinking, agriculture,irrigation,reclamationorotheruses).
TheRestrictions,ReservationsofOwnershipandRights,andCovenantsdescribed hereinarcforthebenefitofGrantor,anditssuccessorsandassigns,andshallbebinding upontheGrantee,anditssuccessorsandassigns,includinganyManagementAgency appointedunderConditionM.3oftheConditionsofApproval,andshallalsorunwith appurtenantlandsownedbyGrantorintheVestCoyoteHills.
A-I
4823-5475-9323.vl7
EXHIBiTItoDeed
A-2
4823-5475-9323.v17
PARCEL1:
BEINGTHOSEPORTIONSOFSECTIONS16AND17,TOWNSHIP3SOUTH,RANGE10WEST,INTHE
RANCHOSLAHABRALOSCOYOTESANDSANJUANCAJONDESANTAANA,INTHECITYOF
FULLERTON,COUNTYOFORANGE,STATEOFCAUFORNIA,ASSAIDSECTIONSARESHOWNONTRACT NO.64,FiLEDINBOOK10,PAGE14OFMISCELLANEOUSMAPSINTHEOFFICEOFTHECOUNTY RECORDEROFSAIDCOUNTYMOREPARTICULARLYDESCRIBEDASFOLLOWS:
COMMENCINGATAPOINTONTHEWESTUNEOFSAiDSOUTHWESTQUARTEROFSECTION16, DISTANTTHEREONSOUTHOO”50’56”WEST692.03FEETMOREORLESSFROMTHENORTHWEST CORNEROFTHESOUTHHALFOFSAiDSOUTHWESTQUARTERDFSECTION16,SAIDPOINTBEING THEINTERSECTIONWITHACURVECONCAVESOUTHWESTERLYHAViNGARADIUSOF1160.00FEET, ARADIALLINETOSAIDPOINTBEARSNORTH42”4053”EAST;THENCECONTINUINGSOUTHERLY ALONGSAIDCURVEANARCDISTANCEOF270.32FEETTHROUGHACENTRALANGLEOF13”21’08” TOTHETRUEPOINTOFBEGINNING.ARADIALLINETOSAIDPOINTBEARSNORTH56°O2’Ol”EAST; THENCESOUTHERLYALONGSAIDCURVEANARCDISTANCEOF30.07FEETTHROUGHACENTRAL ANGLEOF0129’07”TOAPOINTOFCUSPONACURVECONCAVENORTHERLYHAViNGARADIUS OF345.00FEET,ARADIALLINETOSAIDPOINTBEARSNORTH57”31‘08”EAST;THENCEWESTERLY ALONGSAIDCURVEANARCDISTANCEOF112.77FEETTHROUGHACENTRALANGLEOF18”43’43”, ARADIALLINETOSAiDPOINTBEARSSOUTH1O°41’5O”EAST;THENCESOUTH2T26’58’EAST 121.78FEEtTOTHEBEGINNINGOFATANGENTCURVECONCAVEWESTERLYHAVINGARADIUSOF
42.00FEET;THENCESOUTHWESTERLYALONGSAJDCURVEANARCDISTANCEOF52.83FEET THROUGHACENTRALANGLEOF72”O4’27’TOTHEBEGINNINGOFACOMPOUNDCURVEHAVINGA RADIUSOF144.25FEET,ARADIALLINETOSAIDPOINTBEARSSOUTH40°22’31”EAST;THENCE WESTERLYALONGSAIDCURVEANARCDISTANCEOF54.51FEETTHROUGHACENTRALANGLEOF 21°39’O’;THENCESOUTH7116’33’WEST169.19FEETTOTHEBEGINNINGOFATANGENTCURVE CONCAVENORTHERLYHAVINGARADIUSOF100.00FEET;THENCEWESTERLYALONGSAIDCURVE ANARCDISTANCEOF40.33FEETTHROUGHACENTRALANGLEOF23O6’33”TOTHEBEGINNING OFAREVERSECURVECONCAVESOUTHERLYHAVINGARADIUSOF410.00FEET,ARADLAL[JNETO SAIDPOINTSEARSSOUTH04°23’06’WEST;THENCEWESTERLYALONGSAIDCURVEANARC DISTANCEOF164.00FEETTHROUGHACENTRALANGLEOF22°55’O7;THENCESOUTH71”27’59” WEST33.57FEET;ThENCENORTH16”48’05”WEST95.07FEET;THENCENORTH32°09’03”WEST 100.58FEET;THENCENORTH42”27’18”WEST88.41FEET;THENCENORTH31°46’29WEST120.47 FEET;THENCENORTH61°33’39”WEST398.50FEET;THENCENORTH72°O3’50”WEST88.39FEET; THENCENORTH83241O”WEST145.37FEET;THENCENORTH76°18’55”WEST161.09FEET, THENCENORTH83°06’5O”WEST122.37FEET;THENCENORTH02°09’20”EAST112.61FEETTO THEBEGINNINGOFATANGENTCURVECONCAVENORTHWESTERLYHAViNGARADIUSOF361.00 FEET;THENCENORTHEASTERLYALONGSAIDCURVEANARCDISTANCEOF31.61FEETTHROUGHA CENTRALANGLEOF05O1’O1”TOAPOINTONTHESOUTHERLYLINEOFTHELANDDESCRIBEDIN THEQUFTCL.AIMDEEDTOTHErrOFFULLERTON,RECORDEDMAY10,1960INBOOK5236,PAGE 404OFOFFiCIALRECORDS,ARADIALLINETOSAIDPOINTSEARSSOUTH12°17’OlEAST;ThENCE EASTERLYALONGSAIDSOUTHERLYLINE,SOUTH88°58’lg”EAST52,78FEET;THENCENORTH 4O05’45”EAST33.98FEETTOTHEBEGINNINGOFANON—TANGENTCURVECONCAVE NORTHWESTERLYHAVINGARADIUSOF36100FEET,ARADIALLINETOSAIDPOINTBEARSSOUTH 24”48’26”EAST;
DEN&
SSOCIATESLEGALDESCRIPTION
FORPARCELSOFWESTCOYOTEHILLS
FULLERTON,CALIFORNIA CIVILENGINEERS.LANDSURVEYORS.PLANNERS 2552WHITEROAD,SUITEB’IRVINE,CA92614-6236W.O.No.0979—261—001Date12—06—2019 (949)6fl.OIIOIAX:66O-U4l8Engr.13.J.W.Chk’d.J.W.Sheet1of9 A-3
4823-5475-9323.vI7
ThENCENORTHEASTERLYALONGSAIDCURVEANARCDISTANCEOF167.58FEETTHROUGHA CENTRALANGLEOF26°35’49.ARADIALLiNETOSAIDPOINTBEARSSOUTH5124’15”EAST; THENCESOUTH54°55’OB”EAST3113FEETTOTrIEBEGINNINGOFATANGENTCURVECONCAVE NORTHERLYHAVINGARADIUSOF40.00FEET;THENCEEASTERLYALONGSAIDCURVEANARC DISTANCEOF19.70FEETTHROUGHACENTRALANGLEOF2812’49;THENCESOUTH83v0757 EAST139.53FEETTOThEBEGINNINGOFATANGENTCURVECONCAVESOUTHERLYHAVINGA RADIUSOF740.00FEET;THENCEEASTERLYALONGSAIDCURVEANARCDISTANCEOF163.53FEET THROUGHACENTRALANGLEOF1r39’42”;THENCESOUTH7028’15”EAST47.22FEETTOTHE BEGINNINGOFATANGENTCURVECONCAVESOUTHERLYHAVINGARADIUSOF1040.00FEET; THENCEEASTERLYALONGSAIDCURVEANARCDISTANCEOF30.43FEETTHROUGHACENTRAL ANGLEOFO1°40’36”TOTHEBEGINNINGOFAREVERSECURVECONCAVENORTHERLYHAVINGA RADIUSOF15.00FEET,ARADIALUNETOSAIDPOINTBEARSNORTH2112’21EAST;THENCE EASTERLYALONGSAIDCURVEANARCDISTANCEOF8.41FEETTHROUGHACENTRALANGLEOF 32”06’57”TOTHEBEGINNINGOFAREVERSECURVEHAVINGARADIUSOF35.00FEET,ARADIAL UNCTOSAIDPOINTBEARSSOUTH1C154’35”EAST;THENCEEASTERLYALONGSAIDCURVEANARC DISTANCEOF20,54FEETTHROUGHACENTRALANGLEOF33°37’lITTOTHEBEGINNINGOFA COMPOUNDCURVECONCAVESOUTHERLYHAViNGARADIUSOF1048.00FEEl,ARADIALLINETO SADPOINTBEARSNORTH22°42’34”EAST;THENCESOUTHEASTERLYALONGSAIDCURVEANARC DISTANCEOF228.27FEETTHROUGHACENTRALANGLEOF12°28’48”TOTHEBEGINNINGOFA COMPOUNDCURVECONCAVESOUTHWESTERLYHAVINGARADIUSOF35.00FEET,ARADIALLINETO SADPOINTBEARSNORTH35°11’22”EAST;THENCESOUTHERLYALONGSAIDCURVEANARC DISTANCEOF20,54FEETTHROUGHACENTRALANGLEOF3337’1(1’TOTHEBEGINNINGOFA REVERSECURVECONCAVENORTHEASTERLYHAVINGARADIUSOF15.00FEET,ARADIALLINETO SADPOINTBEARSNORTH6848’32EAST;THENCESOUTHERLYALONGSAIDCURVEANARC DISTANCEOF8.41FEETTHROUGHACENTRALANGLEOF32°O6’57’TOThEBEGINNINGOFA REVERSECURVECONCAVESOUTHWESTERLYHAVINGARADIUSOF1040.00FEET,ARADLALLINETO SAIDPOINTBEARSNORTH36’41‘35”EAST;THENCEEASTERLYALONGSAiDCURVEANARCDISTANCE OF30.43FEEtTHROUGHACENTRALANGLEOFO1°4O’36”tOTHEBEGINNINGOFAREVERSE CURVECONCAVENORTHEASTERLYHAVINGARADIUSOF660.00FEET,ARADL4,LLINETOSAIDPOINT BEARSNORTH38’22’12EAST;THENCEEASTERLYALONGSAIDCURVEANARCDISTANCEOF90.96 FEETTHROUGHACENTRAlANGLEOF07°53’48”TOTHEBEGINNINGOF’AREVERSECURVE CONCAVESOUTHWESTERLYHAVINGARADIUSOF740.00FEET,ARADIALLINETOSAIDPOINTBEARS SOUTH3O28’23WEST;THENCESOUTHERLYALONGSAIDCURVEANARCDISTANCEOF319.24FEET THROUGHACENTRALANGLEOF24°43’03”TOTHEBEGINNINGOFAREVERSECURVECONCAVE NORTHERLYHAVINGARADIUSOF10.00FEET,ARADIALLINETOSAIDPOINTBEARSNORTH 55°11’26”EAST;THENCEEASTERLYALONGSAIDCURVEANARCDISTANCEOF14.68FEETTHROUGH ACENTRALANGLEOF84°07’36”,TOTHEBEGINNINGOFAREVERSECURVECONCAVESOUTHERLY HAVINGARADIUSOF10,00FEET,ARADIALLINETOSAIDPOINTBEARSSOUTH28°56’lO”EAST; THENCENORTHEASTERLYALONGSAIDCURVEANARCDISTANCEOF8.67THROUGHACENTRAL ANGLEOF49°39’43’;THENCESOUTH69°16’28”EAST69.51FEETTOTHEBEGINNINGOFA TANGENTCURVECONCAVESOUTHWESTERLYRAVINGARADIUSOF10.00FEET;THENCESOUThERLY ALONGSAIDCURVEANARCDISTANCEOF9.03FEETTHROUGHACENTRALANGLEOF51”44’36”TO THEBEGINNINGOFAREVERSECURVECONCAVENORTHEASTERLYHAVINGARADIUSOF10.00FEET, ARADIALLINETOSAIDPOINTBEARSNORTH72”28’09”EAST;
LDEN&EXHIBIT“A”
SSOCIATESLEGALDESCRIPTION
FORPARCELSOFWESTCOYOTEHILLS
FULLERTON,CALIFORNIA Civil.LNGINEERS-LANDSURVEYORS-PLANNERS 2552WHITEROAD,SUITEBTRVINE,CA926I4-623W.O.No.0979—261—001Date12-06—2019 (949)660-OTIOFAX:1t6fl-O’ITTEngr.8.J.W.Cbk’d.J.W.Sheet2of9 A-4
4823-5475-9323.17
THENCEEASTERLYALONGSAIDCURVEANARCDISTANCEOF10.36FEETTHROUGHACENTRAL ANGLEOF59”20’51”TOTHEBEGINNINGOFACOMPOUNDCURVECONCAVENORTHERLYHAVINGA RADIUSOF315.00FEET,ARADIALLINETOSAIDPOINTBEARSSOUTH13°07’18WEST;THENCE EASTERLYALONGSAIDCURVEANARCDISTANCEOF231.93FEETTHROUGHACENTRALANGLEOF 42°11‘07’ToTHETRUEPOINTOFBEGINNING.ARADIALUNETOSAIDPOINTBEARSSOUTH 29O3’49”EAST.
CONTAINS:451,660SQ.FT.—10.4ACRESMOREOFLESS
PARCEL2:
TOBEUSEDATAFUTUREDATE.
PARCEL3:
BEINGTHOSEPORTIONOFSEC11ONS16AND17,TOWNSHIP3SOUTH,RANGE10WEST,INTHE
RANCHOSLAHABRALOSCOYOTESANDSANJUANCAJONDESANTAANAINTHECITYOF
FULLERTON,COUNTYOFORANGE,STATEOFCALIFORNIA,ASSAIDSECTIONSARESHOWNONTRACT NO.64,FILEDINBOOK1D,PAGE14OFMISCELLANEOUSMAPSINThEOFFICEOFTHECOUNTY RECORDEROFSAIDCOUNTY,MOREPAR11CULARLYDESCRIBEDASFOLLOWS:
COMMENCINGATTHESOUTHWESTERLYCORNEROFPARCEL1OFPARCELMAPNO.90—151AS SHOWNONTHEMAPFILEDINBOOK263,PAGES44THROUGH48INCLUSIVE,OFPARCELMAPSN THEOFFICEOFTHECOUNTYRECORDEROFSAIDCOUNTY,SAIDCORNERBEINGTHEINTERSEC11ON
OFTHECENTERUNEOFIDAHOSTREET(CITYOFLAHABRA,GILBERTSTREETCITYOFFULLERTON) (80.00FEETWIDE)WIFHTHENORTHERLYLINEOFTHECITYOFFULLERTONPERTHEORIGINAL INCORPORATIONASSHOWNONSAIDMAP;THENCEALONGSAIDNORTHERLYLINE,SOUTH8907’O4” EAST1318.68FEETToTHETRUEPOINTOFBEGINNING:THENCECONTINUINGALONGSAID NORTHERLYLINE,SOUTH89cO7O4flEAST1056.35FEETTOTHEWESTERLYLINEOFTHELAND DESCRIBEDINTHEQUITCLAIMDEEDTOTHECITYOFFULLERTONRECORDEDMAY10,1960IN BOOK5236,PAGE404OFOFFiCIALRECORDS,THENCESOUTHERLYALONGSAIDDEED,SOUTH 24”58’19”EAST564,56FEET;THENCENORTH68°58’19”WEST243.80FEET;THENCESOUTH 37°17’Ol”FAST96.62FEETTOTHEBEGINNINGOFATANGENTCURVECONCAVENORTHERLYHAVING ARADIUSOF371.00FEET;THENCEWESTERLYALONGSAIDCURVEANARCDISTANCEOF242.53 FEETTHROUGHACENTRALANGLEOF3r27’19’;THENCENORTH89”49’41”WEST247.92FEETTO THEBEGINNINGOFATANGENTCURVECONCAVENORTHERLYHAVINGARADIUSOF471.00FEET; THENCEWESTERLYALONGSAIDCURVEANARCDISTANCEOF273.86FEETTHROUGHACENTRAL ANGLEOF3Y18’50”;THENCENORTH56°30’52”WEST32.53FEETTOTHEBEGINNINGOFA TANGENTCURVECONCAVESOUTHERLYHAVINGARADIUSOF829.00FEET;THENCEWESTERLYALONG SAIDCURVEANARCDISTANCEOF369.20FEETTHROUGHACENTRALANGLEOF25°31’Ol”;THENCE NORTH82O153”WEST63.84FEETTOTHEBEGINNINGOFATANGENTCURVECONCAVENORTHERLY HAVINGARADIUSOF451.00FEET;THENCEWESTERLYALONGSAIDCURVEANARCDISTANCEOF 211.11FEETTHROUGHACENTRALANGLEOF26°49’lO”,ARADIALLINETOSAIDPOINTBEARS SOUTH34471TWEST;
ALDEN&EXHIBIT“A”
LEGALDESCRIPTION
FORPARCELSOFWESTCOYOTEHILLS
FULLERTON,CAUFORNIA CIVILENGINEERS-LANE)SURVEYORS.PLANNERS 2552WHITEROAD,SUITEBIRVINE,CA26I44236W.O.No.0979—261—001Date12—06—2019 (949)660.0110FAX:660-0418EI1FrB.J.W.Chk’d.J.W.Sheet3of9 A-5
4823-5475-9323.vI7
THENCENORTH2243OrEAST74.73FEE;THENCENORTH85°0820”WEST101.95FEE;THENCE NORTH0957’51’EAST93.25FEETTOTHEBEGINNINGOFANON—TANGENTCURVECONCAVE NORTHERLYHAVINGARADIUSOF47.00FEET,ARADIALLINETOSAIDPOINTBEARSSOUTH 48°2421EAST;THENCENORTHWESTERLYALONGSAIDCURVEANARCDISTANCEOF90.26FEET THROUGHACENTRALANGLEOF11OD2’11’,ARADIALLINETOSAIDPOINTREARSSOUTH6137’50 WEST;THENCENORTH35°28’55”WEST106.66FEET;THENCENORTH211132”WEST116.28FEET TOTHEI.LEQINLQEBEGINNING.
CONTAINS:599,103SQ.FT.—13.7ACRESMOREORLESS
ASSHOWNONEXHIBIT“BATtACHEDHERETOANDMADEAPARTHEREOF.
PREPAREDBYMEORUNDERMYDIRECTION.
J-ALDEN,P.LS.7914
—
DATE
ALDEN&EXHIBIT“A”
LEGALDESCRIPTION
FORPARCELSOFWESTCOYOTEHILLS
FULLERTON.CAlIFORNIA CIVILEN(flN1RS-LANDSURVEYORS-PLANNERS 2352WHITRROAD.SUITE13LRVINLCA926I4623W.O.No.0979—261—001Date12—06—2019 (949)660-OltCFAX6Q.O4I8EnEr.B.J.W.Chkd.J.W.Sheet4of9
A-6
4823-5475-9323.vl7
A2ALDEN&
_r!SSOCJATES
EXHIBIT“B”
PLATTOACCOMPANYALEGALDESCRIPTION
FORPARCELSOFWESTCOYOTEHILLS
FULLERTON,CAUFORNIA
A-7
NWCOR.,S1/2,
SW1/4,SEC.16—.
POINTOF
COMMENCEM1iL”
PARCEL1
6003000600
SCALEINFEET
1INCH=600FEET1
S.
U[r.wo
TRUEPOINT
OFBEGINNING
ACEL3HMLT..O141)FC4,L1.It.
--
POINTOF
COMMENCEMENT
PARCEL3STEEl-
CIVILENGINEERS-LANDSURVEYORS-ILANNERS
2552WhiTEROAD,SUITEB•IRVINE.CA9211441236
(949)660-0110FAX160-0418
W.O.No.0979—261—001Date12—062019
Sheet5of9
4823-5475-9323vl7
STREET
LDEN&LB!L
SSOCIATESPLATTOACCOMPANYALEGALDESCRIPTION
FORPARCELSOFWESTCOYOTEHILLS
FULLERTON,CALIFORNIA CIVILENGINEERS-LANDSURVEYORS-PLANNERS 2552WHIThROAD,SUITEBIRVINE,CA92614-6236W.O.No.0979—261—001Date12—06-2019 (949)66(1-011066(1-0418Engr.B.J.W.Chkd.1W.Sheet6of9
A—8
NOTE:
SEESHEEI8FORRADIALBEARINGSANDLINE
TABLE;SEESHEET9FORCURVETABLEND
BASISOFBEARINGS.
®INDICATESRADIALBEARING
,—NWCaR.,S1/2,
/SW1/4,SEC.16
/LINE,SEC.16
N0O50’56”[692.OY
POINTOF
COMMENCEMENT
PARCEL1
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SEESHEET6
—--=—
_________
2501259
SCALEINFEET
INCH=250FEET
NOTE:
SEESHEET8FORLINETABLE;SEESHEET
FORCURVETABLEANDBASISOFBEARINGS.
TRUEPOINT
OFBEGINNING
PARCEL3\\
COOTGN&tEEC
iu-i
T.L©.1O,
POINTOF
COMMENCEMENT
ALDEN&
SSOC1ATES
CIVILENGINEERS-LANDSURVEYORS-PLANNERS
2552WHITEROAD,SUITERIRVINE,CA92614-6236
(949)660-010FAX:660-1)418
A-9
250
3?3
PARCEL3
13.7ACRES
E.
EXHIBIT“B’
PLATTOACCOMPANYALEGALDESCRIPTION
FORPARCELSOFWESTCOYOTEHILLS
FULLERTON,CALIFORNIA
\V.O.No.09/9—261—001Dale12—06—20)9
EnRr.B.J.W.Chkd.JW.Sheet7of9
4823-5475-9323.;’!7
RADIALBEARINGS
®N42’40’53”E(RAD)
®N56D2’O1”E(RADC4)
©N57°ii08’E(RADC4)
©N2925’33”W(RADC15)
©N1O04l5Ow(RAD)
©N4022’31W(PCC)
©N04”23’06E(Pcc)
®N07°16’06”W(RAD)
N129707”w(RAD)
0N24”48’26”W(RAD)
©N51”24’15W(RAD)
©N219221”E(PRc)
N10°54’35”W(PRC)
®N22°42’34”E(PcC)
©N3591‘22’E(PcC)
®N68”4.8’32”E(PRC)
©N36”41‘35”E(PRC)
()N38”22’12”£(PRc)
®N30’28’2Y’E(PRc)
©N5591’26”E(PRC)
©N28°56’iOW(PRC)
N72°28’09”E(PRc)
N13°07’18”E(PCC)
JN29”03’49”W(RADC34)
ALDEN&
SSOC[ATES
CIVILENGINEERS-IANI)SURVEVOI1S-PLANNERS
2552WHIFFROAD,SUITEE”IRVINE,CA926144236
(9491660-0110FAX660-04IS
1 LINEBEARINGDISTANCE
-N3797’Wj9662’
L2N89°49’41’W247.92’
L3N5630’52’w32-53’
L4N8201’5Y’w63.84’
L5N22°43’07’E74.73’
L6N85”08’20”W101.95’
.riZ2J
LBJN35°28’55”W106.66’
IL9N2r1v3w11
L10N22”26’58”W121.78’
LiiN71”I6’33”E169.19’
L12jN71”27’59”£33.57’
L13N16’48’05”w95.07’
LTJN32’09’03’W100.59’
L15N42’27’18’W88.41’
[_I_’2120.47’
Li?LN6I0i39W39&50’
Ll8N72’03’50’W88.39’
Ll9N83”24’iO”W145.37’
L20N76”lB55W161.09’
1.21N83°03’5cfW122.37’
L22N02’09’20”E11261’
L23N5455’08”W31.13’
L24N837’57W139.53’
L25N70°28’15W47.22’
1.26N69’16’28’W69.51’
1.27N78”14’26’W117.50’
EXHIBIT_B
PLATTOACCOMPANYALEGAl.DESCRIPTION
FORPARCELSOFWESTCOYOTEHILLS
FULLERTON,CALIFORNIA
W.O.No.0979—261—001Date12—06—2019
En,BJ.W.Chk’d.i.W.Sheet8of9
A-b
4823-5475-9323.vl7
CURVETABLE
CURVEjDELTARADIUSLENGTH
CI20’08’311240.00’435.91’
C230*551J160.00626.04’
C313’21’OJl60.00’270.32’
C41’29’O7’11160.00’30.07’
C533”50’501160.00’685.26’
C93727’19’371.00’242.53’
ClO3318’5’471.00’273.86’
Cli2531’OI829.00369.20
-----....
C1226’49’10’451.00’211.11
C13I10’02’1147.00’90.26’
C1518°43’43345.00’112.77’
01672’04’27’4200’52.83’
C172139’04’144.25’54.51’
01823’06’33”100.00’40.33’
019j2T55’07”410.00’164.00’
06,C7&C8WERENOTUSED.
j—-—---1
CURVEDELTARADIUSLENGTH
C20501’0i”361.00’31.61’
C2126’35’49361.00167.58
C2228i249’40.00’19.70’
C2312’39’42’740.00’163.53’
1°40’361040.00’30.43’
C253T06’57’i5.00’8.4r
C26j33’3710”35.00’20.54’
C2TJ12’28’48’1048.00’L27’
C7753’4g660.00’90.96’
-_!
24’43’0’740.00J9.24’
C30SAO7’36”10.00’14.68’
ZL
03251’44’36’10.00’9.03’
C3359’20’51’10.00’10.36’
C344211’07”315.00’231.93’
BASISOFBEARINGS:
THEBEARINGSSHOWNHERONAREBASEDUPONTHESOUTHERLYUNEOF
PARCELMAPNO.90—151,P.M.B.263/44—48,BEINGNORTH89°O7’04”WEST.
ALDEN&
SSOCIATES
CIVILEJGINtiIiRs-LANDSURVEYORS-PL4NNERS
2552WHITEROAD,SUITEB’IRVINE,CA92614-6236
(949)660-0110FAX:661-0418
EXHIBIT“B’
FLATTOACCOMPANYALEGALDESCRIP11ON
FORPARCELSOFWESTCOYOTEHILLS
FULLERTON,CAUFORNIA
W.O.No.0979—261—001Date12—06—2019
Ens’.B.,J.W.Chk’d.J.W.Sheet9of9
A-il
4823-5475-9323.vJ7
EXHiBITB
FORMOFLiCENSEAGREEMENT
ThisLICENSEAGREEMENT(“LicenseAgreement”)ismadeasofthedayof 2020(the“EffectiveDate”),byandbetweenPacificCoastHomes,aCalifornia corporation(“PCH”),andtheCityofFullerton,aCaliforniamunicipalcorporation(the“City”) (each,a“Party,”andcollectively,the“Parties”),onthefollowingtermsandconditions.
RECITALS:
a.PCHownscertainrealpropertyintheCityofFullerton,commonlyknownastheWest CoyoteHillsProjectSite(“ProjectSite”).
b.PursuanttoResolutionNo.20i5-62,adoptedonNovember17,2015,theCityCouncilof theCityofFullertonapprovedVestingTentativeTractMapNo.17609(“VTTM 17609”),subjecttoConditionsofApproval(“ConditionsofApproval”),fortheWest CoyoteHillsDevelopmentProject(“WCT-lProject”)proposedbythePCHontheProject Site(capitalizedtermsnototherwisedefinedinthisLicenseAgreementshallhavethe meaningascribedtheretointheConditionsofApproval).
c.PursuanttoVTTM17609andtheConditionsofApproval,onorabout 2020,PCI-IandtheCityenteredintoanAgreementforthePurchaseandSaleofReal Estate(“PSA”)fortheCitytopurchasethoseportionsoftheProjectSitecommonly identifiedasNeighborhood1andNeighborhood3,asmoreparticularlydescribediiithe GrantDeed(“GrantDeed”)attachedtothePSAasExhibitA(the“SubjectProperty”). d.PursuanttoVTTM17609andtheConditionsofApproval,PCHandtheCitydesireto enterintothisLicenseAgreementonspecifiedtermsandconditionswherebytheCity grantstoPCHtherighttoenterontotheSubjectPropertyforcertainpurposesdescribed herein,tobecomeeffectiveupontheclosingoftheCity’sacquisitionoftheSubject Property(“Closing”).
NOW,THEREFORE,inconsiderationoftheforegoingandthemutualcovenantscontained herein,thePartiesagreeasfollows:
1.Cit\GrantofLicensetoPCI-I(HabitatOb1iationsifan\).TrailImprovements.
RcmediationOb1hations.
PursuanttotheConditionsofApproval,PCHshallundertakecertainactivitiesonornear theSubjectProperty,totheextentnotalreadycompletedatorbeforeClosing,asfollows:
(a)HabitatObligations(ifany),totheextentnotbornebytheManagementAgency identifiedunderConditionofApprovalM.3(ConditionsMM4.12(l)(a),M.2,M.3,G.7, L.3.i,andL.4.i)(“HabitatObligations”);(b)construction,repair,abandonmentand/or maintenanceofcertainInitialTrailimprovementsandtheNeighborhoodTrailPhaseIA B-I
4823-5475-9323.v17
improvements,asreflectedinExhibitAhereto,andasmaybemutuallymodifiedby agreementoftheParties(“TrailImprovements”);(c)performanceofcertainrernediation andwellabandonmentactivities(ConditionsL.3.iandL.4.i,StandardCondition25) (“RemediationObligations”);and(d)anypreliminarysampling,testingorinvestigations neededtoobtainanyapprovalsofHabitationObligations(ifany),TrailImprovements. and/orRemediationObligations(collectively,the“SellerObligations”).Inorderfor PCJItoaccessandusetheSubjectPropertyforthesepurposes,theCityherebygrantsto PCH,atnocost,anon-exclusivelicenseonandovertheSubjectProperty.subjecttothe followingtermsandconditions:
a.Tothefullestextentpermittedbylaw.PCHshallindemnify,defend(atPCH’s solecostandexpense),protectandholdharmlesstheCityandCityofficials, officers,employees,andagents,includingwithoutlimitationCityconsultants, attorneys,contractors,andsubcontractors,(collectively,the“CityIndemnified Parties”)fromandagainstanyandallClaimscausedbyorarisingoutofPCI1’s oritsagents’,contractors’orsubcontractors’entryon,performanceofwork,or constructionandmaintenanceoftheSellerObligations.Notwithstandingthe thregoing,nothinghereinshallheconstruedto1-equirePCIItoindemnify,defend, protect,orholdharmlessaCitylndeinniiiedPartyfromeither(i)anyClaim arisingfromtheactivenegligenceorwillfulmisconductofaCityIndemnified Partyor(ii)anyClaimarisingfromdefectiveworkbyanyoftheCity IndemnifiedParties,whetherlatentorpatent,oranyunsafeconditioncausedor createdbyanyoftheCityIndemnifiedParties.Subjecttotheaforesaid limitations,PCH’sdutytodefendhereunderiswhollyindependentofand separatefromthedutytoindemnify,andsuchdutytodefendexistsregardlessof anyultimateliabilityoftheCityoranyCityIndemnifiedParty,andsuchdefense obligationshallariseuponpresentationofaClaimbyanyCityIndemnifiedParty thatiswithinthescopeofPCH‘sdefenseandindemnityobligationandwritten noticeofsuchClaimbeingprovidedtoPCH.PaymenttoPCHbyaiiyCity IndemnifiedPartyorthepaymentoradvanceofdefensecostsbyanyCity IndemnifiedPartyshallnotbeaconditionprecedenttoenforcingsuchCity IndemnifiedParty’srightstoindemnificationhereunder.PCH’sindemnification obligationhereundershallsurvivetheexpirationorearliertenriinationofthis LicenseAgreementuntilsuchtimeasitbarredbytheapplicablestatuteof limitations.TheexpressindemnificationprovisionssetforthinthisLicense AgreementandthePSAshallsolelygovernallissuesofindemnificationand contributionbetweentheParties.
b.PCI-Ishallobtain,atitssolecostandexpense,anyandallrequiredgovernmental permits,licensesandauthorizationsnecessarytoundertaketheSellerObligations ontheSubjectProperty,andshallcomplywithallapplicablestatutes,ordinances, rules,regulations,ordersandrequirementsregulatingPCH’sactivities. c.PCFIagreestofurnishalllabor,tools,equipment,andmaterialforthe performanceoftheworkdonebyitinconnectionwithsuchuseoftheSubject B-2
4827-5475-9323.v17
Properlyandtopayalltaxesassessedonwagesforsaidlaborandtomakeany andallreportsrequiredinconnectiontherewith.
d.OtherthanthisLicense,nointerestofanykindisherebygivenintheSubject propertyandPCHshallnotassertanyclaimortitletotheSubjectPropertyunder thisLicenseAgreement.
e.PCHagreesthatallworkdoneorundertakenbyitpursuanttothisLicenseonthe SubjectPropertyshallheforitssoleaccount,andnotasanagent,servant,or contractorfortheCity.PC’llshallnotcauseanyworkmen’sormaterialmen’s lienstobeplaceduponanyimprovementsortheSubjectProperty,andagreesto indemnifyandholdtheCityharmlessagainstanysuchliensinviolationofPCH’s obligationshereunder,includiiigbutnotlimitedtothepaymentofattorneys’fees.
ShouldPCHfailtotimelyremoveanysuchlien,Citymaytakeactionas necessarytoremovesuchlienandPCi-Ishallimmediatelyreimburse,theCityfor theexpensesincurredtoremovethelien.
f.ThisLicenseisgrantedsubjecttothetermsandconditionsoftheConditionsof Approval,includingwithoutlimitationConditionsL.3.i,L.4.i.M.2,M.3.M.4.
M.6.MbandIviM4-12(a)(l).andshallnotchangeanyrightsorobligationsof eitherPartyundersaidConditions.Inaddition,thisLicenseAgreementdoesnot applytoormodifyanycovenants,reservationsorrightssetforthintheGrant Deed.
2.TermofLicenseAircemcnt.
a.ThisLiecnscAgreementshallcormnenceontheEffectiveDaleandshall expireuponacceptancebytheCityofcompletionoftheSellerObligationsand thereafterPCHshallhavenoresponsibilityformaintenance,repair,securityor otherwisewithrespecttotheSubjectProperty,subjecttotheConditionsof Approval,thePSA,theGrantDeed,andthetermsandconditionsbelow.Upon City’sacceptanceofcompletionoftheSellerObligations,theCityshallassume allresponsibilityforoperation,maintenance,aidsecurityfortheSubjectProperty oranyportionthereof.
b.Notwithstandingtheforegoing,PCI-IacknowledgesthatthisLicenseAgreement maybesuspendedbytheCityifPCHisinmaterialdefaulthereunderwithrespect totheSellerObligationsortheSubjectProperty(“Default”),andPCHfailsto curesuchDefaultwithinthirty(30)daysafterPCH’sreceiptofwrittennotice fromtheCityor,ifthenatureoftheDefaultissuchthatitcannotbecuredwithin 30days,ifPCHfailstocommencetocuresuchDefaultwithin30daysand thereafterpursuesuchcuretocompletionwithreasonablediligence;provided however,thatiftheCitysuspendsthisLicenseAgreementunderthisprovision, PCH’sobligationswithrespecttoanyremainingSellerObligations,shalllikewise besuspendeduntiltheDefaultisresolvedtothereasonablemutualsatisfactionof theCityandPCH,orfailingsuchagreement,underthedisputeresolution provisionsinthePSA.Atalltimes,PCHshallberesponsibleforanyreasonable B-3
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expensesincurredbyCitytorepairanydamageonortotheSubjectProperty causedbyPCI-Iorundcritsauthority.
ci.ThetermandeffectivenessofthisLicenseAgreementaresubjecttothe provisionsforsuspensionorterminationofPCH’sproject-relatedobligations undertheConditionsofApproval,includingbutnotlimitedtoConditionsL.4.vi andN.
3.Insurance.
PCIIshallobtainandmaintaininsurancecoverageatalltimesduringthetermofthis LicenseAgreementtocoverliabilityassumedhereunder,includingbutnotlimitedto comprehensivegeneralliabilityincludingpersonalinjuryandproperlydamageliability ThelimitofliabilityforsuchinsuranceshallheTwoMillionDollars($2,000,000)to indemnifyagainsttheclaimofoneormorepersons.Saidinsuranceshallheonforms andwithacompanysatisfactorytotheCity,protectingtheCityagainstanyliabilityto anypersonorpersons,arisingoutoforinanywayëonnectedwiththeexerciseofanyof thepermissionsgrantedhereunder.TheCity,anditsagencies,employees,agents,and consultants,shallbenamedasadditionalinsuredsiiisuchpolicyorpolicies,and insurancecertificatesthereofendorsed“PremiumPaid”shallhedeliveredtotheCity priortotheexercisebyPCI-Iofanypermissiongrantedhereunder.PCHshallobtainthe writtenagreementoftheinsurerstonotifytheCity,inwriting,atleast30dayspriorto cancellationofanysuchpolicy.ItisexpresslyunderstoodthatthefulfillmentbyPCHof theseobligationsisaconditionprecedentto[heexercisebyPCHofthisLicense Agreement.
PCI-Ifurtheragreestocomplywithallapplicablestateandfederallaborlawsandto maintainineffectWorkers’CompensationInsuranceasprescribedorpermittedbylaw.
PCH’sinsuranceshallcontainawaiverofsubrogationinfavoroftheCity.
InlieuofanyinsurancesrequiredunderthisLicenseAgreementandnotwithstanding anythingtothecontrarycontainedherein,PCHatitsoptionmayself-insureagainstthe risksforwhichitisobligatedtomaintaininsurancepussuanttothisLicenseAgreement.
Suchself-insuranceshallbeevidencedbyaletterissuedbyChevronU.S.A,whichletter shallbedeliveredtotheCitypriortotheexercisebyPCHofanypermissiongranted hereunder.
4.CooperationbytheParties.
ThePartiesshallcooperatewithandprovidereasonableassistancetoeachothertothe extentnecessarytoimplementthisLicenseAgreement.TheCityshalltakeactionina promptandreasonablemanneronapplicationssubmittedbyPCHtotheCityinproper formandacceptableforprocessingofnecessarylanduseentitlementsandpermits relatingtotheactivitiesPCHmayundertakepursuanttothisLicenseAgreement.The Cityshallcooperateingoodfaith,atnocosttotheCity,withPCHinPCH’seffortsto obtainanygovernmentalpermitsandapprovalsapplicabletotheSubjectPropertyin ordertocarryouttheLicenseAgreement,includingfromanyRegulatoryAgencyto implementHabitatObligations(ifany),RemediationObligations,wellabandonmentand 13-4
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otherworkrequiredbytheConditionsofApprovalorotheragencyapprovalsconsistent withPSAparagraph20(b)(iii)andtheGrantDecd.
5.SuccessorsandAssiuns.
Allofthetermsandprovisionscontainedhereinshallinuretothebenefitofandshallhe bindinguponthePartiesheretoandtheirrespectiveheirs,legalreprcsentatives. successorsandassigns,subjecttothefollowing.
a.ThisLicenseAgreementshallnotbesold,transferred,orassigned(hereinafter, collectively,a“Transfer”)bytheCitywithouttheexpresswrittenconsentof PCH,whichconsentshallnotbeunreasonablywithheld,delayedorconditioned.
AnyattemptedTransferinviolationofthisprovisionshallbenullandvoid.The CityshallgivePCHthirty(30)days’priorwrittennoticeofartysuchproposed Transfer.
b.PCHshallhavetherighttotransferorassignPCH’srightsandobligationsunder thisLicenseAgreement,inwholeorinpart,toanyperson,partnership,joint venture,firm,orcorporationatanytime,includingthetransferoftheHabitat ObligationstoaManagementAgencyappointedunderConditionM.3ofthe ConditionsofApproval.AnysuchTransfershallincludetheassignmentand assumptionofallofPCI-I’srightsandobligationssetforthinorarisingunderthis LicenseAgreementastotheSubjectProperty.Priortotheeffectivedateofa proposedTransfer,PCHshallnoti’theCity,inwriting,oftheproposedtransfer anddelivertotheCityawrittenassignmentandassumption,inaformsubjectto thereasonableapprovaloftheCityAttorney(orhisorherdesignee),pursuantto whichPCHassignsandthesuccessorownerassumesallsuchrightsand obligations(whichsuccessor,asoftheeffectivedateoftheTransfer,shall becomethe“PCI-I”forpurposesofthisLicenseAgreement).Thetransferofthe rightsandobligationsofPCHtoaparent,subsidiary,orotheraffiliateofPCH,or toanysuccessor-in-interestorentityacquiringfiftyonepercent(51%)ormoreof PCH’sstockorassets,shallnothedeemedaTransfer.
NotwithstandinganysuchTransfer,thetransferringpartyshallcontinuetobe jointlyandseverallyliabletotheCity,togetherwiththesuccessorProperty Owner,toperformallofthetransferredobligationssetforthinorarisingunder thisLicenseAgreement,unlessthetransferringPropertyOwnerisgivenarelease inwritingbyCity.Cityshallimmediatelyprovidesuchareleaseuponthe transferringparty’sfullsatisfactionofallofthefollowingconditions:(i)the transferringpartyisnottheninmaterialDefaultunderthisLicenseAgreement andnoconditionexiststhatwiththepassageoftimeorthegivingofnotice,or both,wouldconstituteamaterialDefaulthereunder;and(ii)thesuccessorparty eitherprovidestheCitywithsubstitutesecurityequivalenttoanysecurity previouslyprovidedbyPCHtotheCity,ifapplicable,tosecureperformanceof thesuccessorPropertyOwner’sobligationswithrespecttothepropertyorthe portionofthepropertytransferred,orifthetransferredobligationisnotasecured 4823-5475-9323.v17
obligation,thesuccessorPropertyOwnereitherprovidessecurityreasonably satisfactorytoCityorotherwisedemonstratestoCity’sreasonablesatisfaction thatthesuccessorPropertyOwnerhasthefinancialresourcesorcommitments availabletoperformthetransferredobligationsatthetimeandinthemanner requiredunderthisLicenseAgreement.
6.ReimbursementofCosts.
TheCityshallhavetherighttochargeandPCHshallpayapplicableprocessingand permitfeestocoverthereasonablecoststotheCityofprocessingandreviewingany applicationsandplansnecessarytocarryouttheSellerObligations. 7,Default.RemediesandDi,puteResolution.
Intheeventofanymaterialdefault,cross-default,breach,orviolationofthetermsofthis LicenseAgreement(“Default”),thePartyallegingaDefaultshallhavetherightto deliverawrittenNoticeofDefaulttothedefaultingParty.TheNoticeofDefaultshall specifythenatureoftheallegedDefaultandprovideareasonableperiodoftime(being ten(10)daysiftheDefaultrelatestothefailuretotimelymakeamonetarypaymentdue thereunderandnotlessthanthirty(30)daysintheeventofnon-monetaryDefaults)in whichtheDefaultmustbecured(the“CurePeriod”).DuringtheCurePeriod,theParty chargedshallnotbeconsideredinDefaultforthepurposesofterminationofthisLicense Agreementorinstitutionoflegalproceedings.IftheallegedDefaultiscuredwithinthe CurePeriod,thentheDefaultthereaftershallbedeemednottoexist.IftheDefaultisnot cured,anyandalldisputesshallbehandledunderthedisputeresolutionprovisionsofthe PSA.FailureordelaybyeitherPartyindeliveringaNoticeofDefaultshallnotwaive thatParty’srighttodeliverafutureNoticeofDefaultofthesameoranyotherDefault.
8.SpecificPerformanceRerned’..
ThePartiesacknowledgeitwouldnotbepracticalorpossibletorestoretheSubject Propertytoitspre-existingconditiononceimplementationofthisLicenseAgreementhas begun.PCHandtheCityhaveinvestedsignificanttimeandresourcesandperformed extensiveplanningandprocessingoftheWCHProjectandinagreeingtothetermsof thisLicenseAgreement,andwillbeinvestingadditionalsignificanttimeandresourcesin implementingtheWCHProjectinrelianceuponthetermsofthisLicenseAgreement.It isnotpossibletodeterminethesumofmoneywhichwouldadequatelycompensatePCI-I ortheCityforsuchefforts;and,forthesereasons,theCityandPCHagreethatmonetary damageswouldnotbeanadequateremedyifeithertheCityorPCHfailsinamaterial mannertocarryoutitsobligationsunderthisLicenseAgreement.Accordingly,theCity andPCHstipulateandagreethatspecificperformanceofthisLicenseAgreementis necessaryiftheotherPartymateriallyfailstocarryoutitsobligationshereunder.
9.Indemnit’ofCertainThird-PartyClaims.
PCHshallindemnify,defend,andholdharmlesstheCityandCityofficials,officers, employees,andagents,includingwithoutlimitationCityconsultants,attorneys, contractors,andsubcontractors(collectively,the“City’sAffiliatedParties”),fromand B-6
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againstanyClaimsagainstCityorCity’sAffiliatedPartiesseekingtochallenge,set aside,void,orannultheapprovalofthisLicenscAgreement.Saidindemnityobligation shallincludepaymentofattorney’sfees,expertwitnessfees,andcourtcosts.Cityshall promptlynotifyPCHofanysuchClaimandCityshallcooperatewithPCHinthe defenseofsuchClaim.IfCityfailstopromptlynotifyPCHofsuchClaim.PCHshall notberesponsibletoindemnify,defend,andholdtheCityharmlessfromsuchClaim untilPCHissonotified;andiftheCityfailstocooperateinthedefenseofaClaim,PCH shallnotberesponsibletodefend,indemnify,andholdharmlesstheCityduringthe periodthattheCitysofailstocooperateorforanylossesattributablethereto.PCHshall beentitledtocontrolthedefenseofsuchClaim;provided,however,thatPCHshallnot havetheauthoritytounilaterallymodifyorchangethisLicenseAgreementandPCH shallhavenoauthoritytobindtheCii)’totakingaimyfurtheractionswithrespectthereto exceptwiththeCity’spriorwrittenconsent,whichconsenttheCitymaywithholdinits soleandabsolutediscretion.PCHshallhavetherighttochooselegalcounseltodefend theClaim(subjecttosuchcounsel’scompliancewithanyapplicableconflictofinterest orethicalrulesthatapply)andPCHshallpayanyattorneys’fees,expertwitnessfees, costs,interest,andotheramountsthatmaybeawardedagainsttheCityorPCII,orboth, resultingfromtheClaim.PCHshallkeeptheCityinformedofthestatusofanypending orthreatenedClaimupontheCity’srequestandpromptlyafterthereisanychangeinthe statusoftheClaim.TntheeventPCHrecoversanyattorneys’fees,expertwitnessfees, costs,interest,orotheramountsfromthepartyorpartiesassertingtheClaim,PCi-Ishall beentitledtoretainthesame.
10.Notice.
Allnoticesgivenhereundershallbeeffectivewhenpersonallydeliveredorsentby overnightdeliveryservicetoanyrepresentativeoremployeeoftheCityortoPCHatthe respectiveaddressesshownbelow
CITY:PCH:
CityofFullertonPacificCoastHomes
303W.CommonwealthAve.6001BolLingerCanyonRoad,V1336C
Fullerton,CA92832SanRamon,CA94583
Attn:CityManagerAtm:ivanJimenez
11.GovcrnimmLaw.Interpretation.
ThisLicenseAgreementshallbegovernedbyCalifornialawwithoutregardtoconflicts oflawprinciples.ThetermsofthisLicenseAgreementarecontractualinnatureandthe resultofarms’lengthnegotiationbetweentheParties.Accordingly,anymieof constructionofcontracts(including,withoutlimitation,CaliforniaCivilCodeSection 1654)thatambiguitiesarctobeconstruedagainstthedraftingpartyshallnotbe employedintheinterpretationofthisLicenseAgreement.Thecaptionandparagraph headingsusedinthisLicenseAgreementareinsertedforconvenienceofreferenceonly B-7
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andarenotintendedtodefine,limitoraffecttheinterpretationorconstructionofany termorprovisionhereof.
12.ModificationsorAmendments.
Noamendment,changeormodificationofthisLicenseAgreementshallbevalid,unless inwritingandsignedbythePartieshereto.
13,ForceMajeure.
NeithertheCitynorPCHshallbedeemedtobeinDefaultofthisLicenseAgreement wherefailureordelayinperformanceofanyobligationsiscausedbyfloods,earthquake, otherActsofGod,fires,wars,riotsorsimilarhostilities,strikesandotherlabor difficultiesbeyondtheParty’scontrol(includingtheParty’semploymentforce), governmentregulations(includingforpandemics),courtactions(suchasrestraining ordersorinjunctions),orothercausesbeyondtheParty’scontrol.Ifanysuchevents shalloccur,thetimeforperfonnanecbyeitherPartyofanyofitsobligationsshallbe extendedfortheperiodoftimethatsucheventspreventedsuchperformance.Either Partylearningofaforcemajeureeventshall,assoonasreasonablypracticable.notifythe otherPartyinwritingoftheoccurrenceoftheevent,whichnoticeshallincludea statementastothedateonwhichtheforcemajeureeventcommenced.Uponthe cessationoftheforcemajeureeventoritseffectswhichpreventedperfonnance hereunder,eitherPartywithknowledgeofthecessationoftheeventshallnotifytheother Partyinwritingofsuchcessation,whichnoticeshallincludeastatementastothedateOfl whichtheforcemajeureeventceased.TntheeventtheTermofthisLicenseAgreement isextendedforanyreason,thePartiesshallcooperateinexecutinganappropriate memorandumorotherwritingmemorializingthechangetotheTerm.Notwithstanding theforegoing,innoeventshalladversefinancialormarketconditions,interestrates, PCH’sinabilitytoobtainfinancingoritsinabilitytoobtainfinancingontermsacceptable toPCH,orPCII’sactualorallegedlackoffinancialcapabilitytoperformbedeemedto constituteaneventoroccurrenceentitlingPCHtoanextensionofitstimefor performanceofanyobligationsetforthinthisLicenseAgreement.
14.EntireLicenseAreement.
ThisLicenseAgreement,togetherwiththeExhibitattachedhereto,constitutestheentire understandingandagreementofthePartieswithrespecttoitssubjectmatter.Anyandall prioragreements,understandingsorrepresentationswithrespecttoitssubjectmatter, whetherwrittenororal,areherebycanceledintheirentiretyandareofnoforceoreffect.
Notwithstandingtheforegoing,itisunderstoodandagreedthatthisLicenseAgreementis notintendedtosupersede,modify,oramendtheConditionsofApprovalortheGrant Deed.Inaddition,nothinginthisLicenseAgreementsupersedes,modifiesoramendsthe SellerObligationsorallowsPCHtoundertakethoseobligationsexceptinaccordance withapplicablefederal,state,andlocallaws,regulations,andrules,includingwithout limitationanywarrantyobligationsthatapplyaflersaidimprovementshavebeen acceptedbyCity.
15.NoOtherinducement.
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TheexecutionanddeliveryofthisLicenseAgreementbythepartiesheretohasnotbeen inducedbyanyrepresentations,statementswarrantiesorLicenseAgreementsotherthan thoseexpressedherein.
16.Non-Waiver.
NowaiverbyanyPartyheretoofadefaultofanyprovisionofthisLicenseAgreement shallconstituteawaiverofanyprecedingorsucceedingdefaultofthesameoranyother provisionhereof.
17.Countcrps.
ThisLicenseAgreementmaybeexecutedinoneormorecounterparts,eachofwhich shallhedeemedanoriginal,butallofwhichtogethershallconstituteoneandthesame instrument.Facsimilesignaturesshallbetreatedthesameasoriginalsignatures.
18.FullAuthurit\
EachofthePartiestothisLicenseAgreementrepresentsandwarrants(i)thatthe signatorytothisLicenseAgreementisdulyauthorizedtoexecutethisLicenseAgreement onsuchParty’sbehalf;(ii)thatthePartyhasthefullright,power.legalcapacityand authoritytoenterintoandperformtheParties’respectiveobligationshereunder;and (iii)thatsuchobligationsshallbebindinguponsuchPartywithouttherequirementofthe approvalorconsentofanyotherpersonorentityincoimectionherewith.
19.Severahilit.
IfanyprovisionofthisLicenseAgreementisheldbyacourtofcompetentjurisdictionin afinaljudicialactiontohevoid,voidable,orunenforceable,suchprovisionshallbe deemedseverablefromtheremainingprovisionsofthisLicenseAgreement,andshallin nowayaffectthevalidityoftheremainingprovisionsofthisLicenseAgreement.
ISignaturePageFollowsl
TNWTTNESSWHEREOF,thePartiesheretohaveexecutedthisLicenseAgreementthis dayof,2020.
PCH:
PacificCoastHomes,
aCaliforniacorporation
By:
_____________________
Its:
___________________________________
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City:
CityofFullerton,
aCaliforniamunicipalcorporation
By:
Its:
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>
•rt
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1 4836
-3734-3186.v1
FIRST AMENDMENT TO AGREEMENT FOR
PURCHASE AND SALE OF REAL ESTATE
(AND JOINT ESCROW INSTRUCTIONS)
THIS FIRST AMENDMENT TO AGREEMENT FOR PURCHASE AND SALE OF REAL ESTATE (AND JOINT ESCROW INSTRUCTIONS) (“ First Amendment”) is made by and between PACIFIC COAST HOMES, a California corporation (“Seller”), and THE CITY OF FULLERTON, a California municipal corporation (“Buyer” or “City”) (each, a “Party” and collectively, “the Parties”), effective as of the date this First Amendment is signed by the last to sign of Seller and Buyer, as reflected beneath their respective signatures, on the following terms and conditions.
RECITALS:
a. The Parties entered into that certain AGREEMENT FOR PURCHASE AND SALE OF REAL ESTATE (AND JOINT ESCROW INSTRUCTIONS) (the “Agreement”) for the sale of certain real property in the City of Fullerton, effective as of July 20, 2020. b. The Parties now desire to amend the Agreement and enter into this First Amendment on the terms and conditions provided herein.
c. The Parties further intend that except for the amendment s provided herein, all terms and conditions in the Agreement shall remain in full force and effect. d. Capitalized terms used herein shall have the meaning set forth in the Glossary of Terms in the Agreement, or if no definition is set forth in the Glossary of Terms, such capitalized terms shall have the meaning immediately following or preceding the use of such terms in the Agreement of this Frist Amendment.
In consideration of the mutual covenants set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:
1. Paragraph 5: Remedial Action Plans/Closing Date. Paragraph 5 of the Agreement is amended and replaced to provide, in full, as follows:
Buyer represents that if any RAPs are required for the Real Property, Buyer must provide such RAPs as approved by the relevant environmental agencies (“Approved RAPs”) to State funding agencies that are providing grant funding to be used by Buyer, in part, to purchase the Real Property. Seller will submit all necessary applications to the relevant environmental agencies to obtain any RAPs that may be required, promptly provide copies of said final applications to Buyer, and use its best effort to obtain and provide Approved RAPs to Buyer prior to February 15, 2021, but makes no promises, representations or warranties regarding the approval of any RAPs and/or the timing or the conditions thereof. Closing hereunder shall occur no later than March 31, 2021(“Closing Date”), provided that 2 4836-3734-3186.v1
in the event Approved RAPs are not available prior to Closing, the Closing shall be subject to Seller, at Close of Escrow, providing performance se curity sufficient to Buyer for (a) the Price Adjustment required under Paragraphs 2 and 14(a)(vi) herein, and (b) and any remediation obligations pursuant to Paragraph 14(a)(vii) and VTTM No. 17609.
2. Glossary of Terms. The Glossary of Terms is amended to provide, as to the Closing Date, as follows:
“Closing Date”: Has the meaning set forth in Paragraph 5.
3. Grant Deed. The property description in the Grant Deed, Exhibit 1 to the Agreement, is hereby amended, in full, as provided in in Exhibit 1 to this First Amendment.
IN WITNESS WHEREOF, the Parties hereto have executed this First Amendment as of the dates indicated below.
BUYER
THE CITY OF FULLERTON, a municipal
corporation
By: ________________________________
Its: ________________________________
Dated: ____________________, 2020
SELLER
PACIFIC COAST HOMES, a California
corporation
By: _________________________________
Its: _________________________________
Dated: ____________________, 2020
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