Attach 2 - PAS Packet — Laguna Beach City Council, December 9, 2025

55852.01006\44451121.1
Amendment to Purchase and Sale Agreement

SECOND AMENDMENT TO AGREEMENT FOR PURCHASE AND SALE OF REAL

PROPERTY AND JOINT ESCROW INSTRUCTIONS
This Second Amendment to Agreement for Purchase and Sale of Real Property and Joint Escrow Instructions (“Second Amendment”) is made as of December __, 2025 (the “Effective Date”), by and between PHILIP E. BURKHARDT, Trustee of Trust B under the Burkhardt Family Trust established December 6, 1988 (“Seller”), and THE CITY OF LAGUNA BEACH, a California municipal corporation (“Buyer”), who agree as follows:

AGREEMENT

1. Background.

A. Seller and Buyer have entered into that certain Purchase and Sale Agreement dated January 16, 2025 as amended by that certain First Amendment to Agreement for Purchase and Sale of Real Property and Joint Escrow Instructions dated as of February 28, 2025 (the “First Amendment”) (as amended, the “Purchase Agreement”), for the purchase and sale of that certain located at 2307 Laguna Canyon Road, City of Laguna Beach, County of Orange, State of California, and as further described in Exhibit A to the Purchase Agreement (the “Property”). Capitalized terms not defined herein shall have the meanings set forth in the Purchase Agreement.

B. Pursuant to the First Amendment, the Due Diligence Period was extended to April 23, 2025 to accommodate a Phase II Environmental Assessment and testing on the Property (“Phase II”). Buyer disapproved the results of its due diligence investigation prior to April 23, 2025, but elected to keep the Deposit in Escrow pending further testing and negotiations with Seller.

C. Buyer and Seller now desire to revive the Purchase Agreement and modify same on the terms and conditions set forth herein.

2. Purchase Price. As express consideration for Buyer’s obligations under the Purchase Agreement, as amended herein, the Purchase Price for Seller’s undivided fifty percent (50%) interest in the Property shall be reduced to One Million Five Hundred Twenty-Five Thousand Dollars ($1,525,000.00).

3. Due Diligence Period. Notwithstanding anything to the contrary set forth in the Purchase Agreement, and notwithstanding Buyer’s disapproval of its due diligence investigation, the Due Diligence Period pursuant to Section 3.1.1 of the Purchase Agreement is hereby extended, and shall expire at 5:00 p.m. on January 20, 2026.

4. Closing. Subject to the satisfaction of the conditions precedent set forth in Article 4 of the Purchase Agreement, the Closing Date is hereby extended to January 30, 2026.

5. Effect on Agreement. All other terms of the Purchase Agreement, except as expressly modified herein, shall continue in full force and effect. In the event and to the extent Docusign Envelope ID: C1C79568-390E-4CE4-BDD8-FEAC7BFE6A54 Attachment 2
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Amendment to Purchase and Sale Agreement
2 of any conflict between the terms of this Second Amendment and the terms of the Purchase Agreement, the terms of this Second Amendment shall govern.

6. Counterparts. This Second Amendment may be executed in any number of identical counterparts. If so executed, each of such counterparts is to be deemed an original for all purposes and all such counterparts shall collectively constitute one Agreement. This Second Amendment may be executed by facsimile or PDF signatures which shall be binding on the parties hereto.

7. Incorporation of Recitals. The Recitals are hereby incorporated into this Second Amendment.
[Signatures on Following Page]
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Signature Page to PSA Amendment
IN WITNESS WHEREOF, Seller and Buyer have executed this Second Amendment effective as of the day and year first above written.

SELLER:

TRUST B UNDER THE BURKHARDT FAMILY
TRUST established December 6, 1988
By: Philip E. Burkhardt
Its: Trustee
BUYER:

CITY OF LAGUNA BEACH, a California
municipal corporation
By: ______________________
Its: _______________________
Docusign Envelope ID: C1C79568-390E-4CE4-BDD8-FEAC7BFE6A54 18 55852.01006\44451112.1
Amendment to Purchase and Sale Agreement

SECOND AMENDMENT TO AGREEMENT FOR PURCHASE AND SALE OF REAL

PROPERTY AND JOINT ESCROW INSTRUCTIONS
This Second Amendment to Agreement for Purchase and Sale of Real Property and Joint Escrow Instructions (“Second Amendment”) is made as of December __, 2025 (the “Effective Date”), by and between PHILIP E. BURKHARDT, Trustee of Trust C under the Burkhardt Family Trust established December 6, 1988 (“Seller”), and THE CITY OF LAGUNA BEACH, a California municipal corporation (“Buyer”), who agree as follows:

AGREEMENT

1. Background.

C. Buyer and Seller now desire to revive the Purchase Agreement and modify same on the terms and conditions set forth herein.

4. Closing. Subject to the satisfaction of the conditions precedent set forth in Article 4 of the Purchase Agreement, the Closing Date is hereby extended to January 30, 2026.

5. Effect on Agreement. All other terms of the Purchase Agreement, except as expressly modified herein, shall continue in full force and effect. In the event and to the extent Docusign Envelope ID: C1C79568-390E-4CE4-BDD8-FEAC7BFE6A54 19 55852.01006\44451112.1
Amendment to Purchase and Sale Agreement
2 of any conflict between the terms of this Second Amendment and the terms of the Purchase Agreement, the terms of this Second Amendment shall govern.

7. Incorporation of Recitals. The Recitals are hereby incorporated into this Second Amendment.
[Signatures on Following Page]
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Signature Page to PSA Amendment
IN WITNESS WHEREOF, Seller and Buyer have executed this Second Amendment effective as of the day and year first above written.

SELLER:

TRUST C UNDER THE BURKHARDT FAMILY
TRUST established December 6, 1988
By: Philip E. Burkhardt
Its: Trustee
BUYER:

CITY OF LAGUNA BEACH, a California
municipal corporation
By: ______________________
Its: _______________________
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PURCHASE AND SALE AGREEMENT

AND JOINT ESCROW INSTRUCTIONS
This Purchase and Sale Agreement and Joint Escrow Instructions (this "Agreement") is made as of January l!Q, 2025 (the "Effective Date"), between PHILIP E. BURKHARDT, Trustee of Trust B under the Burkhardt Family Trust established December 6, 1988 ("Seller"), and CITY OF LAGUNA BEACH, a California municipal corporation ("Buyer").

ARTICLE 1. AGREEMENT OF SALE.

Subject to and on the terms and conditions of this Agreement, Seller shall sell to Buyer and Buyer shall purchase from Seller an undivided fifty percent (50%) interest in all of the following:

I. 1 Land. The real property consisting of approximately 101,495 square feet (2.33 acres) located at 2307 Laguna Canyon Road, City of Laguna Beach, Orange, California (APN:
632-101-10), which is more particularly described in Exhibit A, together with (a) all privileges, rights, easements and appurtenances belonging to the real property, including without limitation all minerals, oil, gas and other hydrocarbon substances on and under the real property, (b) all development rights, air rights, water, water rights and water stock relating to the real property, and ( c) all right, title and interest of Seller in and to any streets, alleys, passages, other easements and other rights-of-way or appurtenances included in, adjacent to or used in connection with such real property, before or after the vacation thereof (collectively, the "Land");

1.2 Improvements. Any and all structures, systems, facilities, fixtures, fences, landscaping, and parking areas located on the Land and any and all machinery, equipment, apparatus and appliances used in connection with the operation or occupancy of the Land (such as heating and air conditioning systems and facilities used to provide utility services, refrigeration, ventilation, garbage disposal or other amenities on the Land) and other improvements located upon the Land, including, but not limited to, an industrial office building improvements (collectively, the "Improvements"
The Land and the Improvements are sometimes collectively referred to in this Agreement as the "Property"

1.3 Personal Property. All of Seller's right, title and interest in and to any personal property located within or used in connection with the Property, including, without limitation, the furniture, fixtures and equipment referenced in Section 2.1, below, and that described in the Personal Property Inventory attached hereto as Exhibit B (collectively, the "Personal Property").

1.4 Service Contracts. Those Service Contracts (defined in Section 5.7) which Buyer expressly agrees to assume;

1.5 Leases. All of the landlord's interest in and to the Leases (the "Leases") between Seller, as Landlord, and the tenants ("Tenants") in occupancy under the Leases referenced in Section 5.7, below and set forth on Exhibit G; and
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1.6 Other Assets. To the extent owned by Seller, all tangible and intangible assets of any nature relating to the Property or the Personal Property, including without limitation (a) all warranties upon the Improvements or Personal Property, to the full extent such warranties are assignable, (b) copies of all plans, specifications, engineering drawings and prints relating to the construction of the Improvements, (c) all license agreements, copyrights, logos, designs, trademarks, trade names, service marks and all goodwill associated with the Property, (d) all other intellectual or intangible property used by Seller in connection with the Property; and (e) all claims and causes of action arising out of or in connection with the Property; ARTICLE 2. PURCHASE PRICE.

2.1 Amount; Contingencies. The purchase price (the "Purchase Price") for an undivided fifty percent (50%) interest in the Property shall be $1,850,000.00. Seller acknowledges and agrees that Buyer is not requesting a financing or appraisal contingency in contemplation of the Purchase Price, however, Buyer may, in its sole discretion, engage with an appraiser to evaluate the value of the Property during the Due Diligence Period (as defined in Section 3.1.1 ). The parties further acknowledge and agree that the Purchase Price is predicated on the assumption that no adverse environmental conditions exist on the Property. Should Buyer determine, in its reasonable discretion, that adverse environmental conditions are present on the Property during its Due Diligence Investigation (as defined below in Section 3.1.2), the parties shall, prior to expiration of the Due Diligence Period, negotiate in good faith, the manner in which such conditions shall be remedied and the Due Diligence Period shall be tolled for the duration of such negotiations.

Additionally, the amount of the Purchase Price shall be contingent on Buyer obtaining legal possession of all furniture, fixtures, and equipment used in connection with the operation of the Property in good working order and repair, and otherwise owned by Seller. Seller agrees to cooperate fully to ensure the transfer of such items to Buyer as part of the transaction.

2.2 Deposit/Purchase Price.

2.2.1 Within 5 business days after the Effective Date, Buyer shall deposit $25,000.00 into Escrow (as defined below) into an interest bearing account on behalf of Buyer (the "Deposit"). The deposit shall be refundable to Buyer unless Buyer waives all contingencies by the expiration of the Due Diligence Period. If the Closing of the transaction contemplated by this transaction occurs, the Deposit shall be disbursed to Seller and applied to the Purchase Price at Closing. The failure of Buyer to make the Deposit within the time frame specified in this Section shall be material breach of this Agreement and Seller may terminate the Agreement.

2.2.2 Buyer shall pay the Purchase Price to Seller through escrow at the Closing described in Section 9.1. On or before the Closing Date (as defined below), Buyer shall deposit into Escrow the Purchase Price, subject to adjustment by reason of any applicable prorations and the allocation of closing costs described below.

2.2.3 The Deposit and Purchase Price shall be made by wire transfer of federal funds, cashier's check or in another immediately available form. Notwithstanding anything herein to the contrary, One Hundred Dollars ($100.00) of the Initial Deposit (the "Independent Consideration") shall not be refundable to Buyer, but shall represent consideration for this Agreement and shall be paid to Seller. The Independent Consideration shall be paid to Seller 2 55852.01006\4306521 l.4
29 Docusign Envelope ID: 0BE25B51-B03A-4B1 D-848B-09EBCC6C600D within 3 days of the Effective Date. The Independent Consideration shall serve as consideration for the granting of the time periods herein contained for Buyer to exercise Buyer's right to satisfy and approve all of Buyer's conditions herein contained. If the Deposit is refunded to Buyer for any reason pursuant to this Agreement, the Independent Consideration shall be subtracted from the Deposit pursuant to this Section.

2.2.4 In the event Buyer exercises the right to extend the Closing Date pursuant to Section 9.1, below, Buyer shall, within three (3) business days after delivery of the Closing Extension Notice (defined below), deposit into Escrow an additional Six Thousand Two Hundred Fifty Dollars ($6,250.00) (the "Extension Deposit"), which Extension Deposit shall be added to the Deposit and shall be applied to the Purchase Price at Closing.

ARTICLE 3. DUE DILIGENCE.

3.1 Due Diligence Period; Inspection and Access.

3.1.1 Due Diligence Period. The "Due Diligence Period" means the period beginning on the Effective Date and ending at 5:00 p.m. on February 21, 2025, provided, however, in the event the Preliminary Documents and the Lease Documentation (defined below) are not delivered on or before the Seller Document Deadline (defined below), the Due Diligence Period and the Closing Date shall be automatically extended one (1) day for each day beyond the Seller Document Deadline that the Preliminary Documents and the Lease Documentation are not delivered to Buyer by Seller.

3.1.2 Access to Information and the Property. Buyer shall conduct its investigation of the Property during the Due Diligence Period at no cost to Seller. This investigation ("Due Diligence Investigation") may include, at Buyer's option: a physical inspection of the Land and all Improvements thereon, including soil, geological and other tests, engineering evaluations of the mechanical, electrical, HV AC and other systems in the Improvements and review of the Plans; review of all governmental matters affecting the Property, including zoning, environmental and building permit and occupancy matters; review and verification of all financial and other information previously provided by Seller relating to the operation of the Property; review of the condition of title to the Property, including the building, structural system and roof inspection; and review of such other matters pertaining to an investment in the Property as Buyer deems advisable. In addition to the Preliminary Documents delivered to Buyer pursuant to Section 3.2, Buyer and its representatives shall have the right of access during reasonable business hours to all files, books and records maintained by Seller or its agents (including, without limitation, all of the Additional Documents to be made available to Buyer at the Property pursuant to Section 3 .3), wherever located, relating to the Property, including the right to copy the same. Buyer and its representatives shall also have the right of access to the Property during reasonable business hours to conduct its investigation of the physical condition of the Property. Seller agrees that the rights granted to Buyer herein and the results of its Due Diligence Investigation shall not relieve Seller of any obligations Seller may have under any other provisions of this Agreement, or under other documents entered into concurrently herewith, or implied by law, nor shall they constitute a waiver by Buyer of the right to enforce any of the same. Seller shall cooperate with Buyer in its due diligence activities and provide access to the Property, its records, or provide information so long as it is within Seller's control. 3 55852.01006\43065211.4
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3.2.1 Title Report and Survey. A preliminary title report or commitment for title insurance (the "Preliminary Title Report"), dated no earlier than 10 days before the Effective Date, covering the Property and issued by a title insurance company or companies acceptable to Buyer (the "Title Company"), together with a legible copy of each document, map and survey referred to in the Preliminary Title Report. Buyer, at Buyer's sole cost, may obtain an as-built survey of the Property (the "Survey") prepared by a certified land surveyor in accordance with the most recent American Land Title Association standards, certified by such surveyor to Buyer and the Title Company in a form acceptable to the Title Company for the purpose of deleting any survey exception from the Title Policy described in Section 4.1.3.

3.2.2 Plans. Copies of all as-built plans and specifications for the Improvements, including without limitation the plans and specifications for and a complete description of all existing renovations and improvements to the Property and all rentable space therein, and as-built drawings for all underground utilities (collectively, the "Plans"), together with a certificate from an architect approved by Buyer certifying to Buyer that the Improvements were constructed and completed in accordance with the Plans;

3.2.3 Soils Report. Any soils report on the Land prepared at Seller's request or in the possession or control of Seller, including (if available) a report on compliance with any soils work recommended to be done prior to construction of the Improvements;

3.2.4 Engineers' Reports. Any structural, mechanical, environmental or geological reports concerning the Property which have been prepared at Seller's request or which are within Seller's possession or control;

3.2.5 Operating Statements; Tax Bills. Copies of operating statements for the Property for the monthly period between January 1, 2022, through November, 2024 certified by Seller including an itemization of income and expenses and copies of all real property tax bills for the Property for such periods. During the Due Diligence Period, Seller shall provide copies of true and accurate operating statements for the months of December 2024 and January 2025, as they become available, but in no event later than the expiration of the Due Diligence Period;

3.2.7 Lease Documentation. Fully executed copies of all of the Leases set forth on Exhibit G, including, without limitation, new Leases or Lease amendments for such leases for which an original is either lost, incomplete, unsigned, or otherwise unavailable, along with duly executed estoppel certificates on a form reasonably acceptable to Buyer disclosing no defaults or 4 55852.01006\430652 l l.4
31 Docusign Envelope ID: 0BE25851-B03A-4B 1 D-848B-09EBCC6C600D alleged defaults by either Seller or the Tenant under such Lease or any Tenant bankruptcy, or any dispute between Seller and a Tenant (the "Preliminary Estoppels"), the Leases and the Preliminary Estoppels shall be referred to herein as the "Lease Documentation"); and

3.2.8 Inspection Reports. Copies of all written reports received by Seller within three (3) years prior to the Effective Date from Seller's insurance companies, any governmental agency or any other person or entity, which requires or demands correction of any condition, or requests modification in or termination of any uses of the Property, accompanied by Seller's summary of (a) any oral reports from such insurance companies or governmental agencies, and (b) the present status of any matter noted in any oral or written report.

3.3.1 Agreements. Copies of written, and written descriptions of oral, easements, covenants, restrictions, agreements, contracts and other documents, whether existing or, to the knowledge of Seller, proposed as of the Effective Date, including without limitation any agreements relating to the insurance, service, operation, repair, supply, advertising, promotion, sale, leasing or management of the Property, which (a) affect the Property, (b) are not disclosed by the Preliminary Title Report, and (c) have not been delivered to Buyer pursuant to Section 3.2.

If no such documents exist, Seller shall furnish its certification to that effect;

3.3.2 Warranties/Roof Inspections/HY AC Inspections. Copies of any and all guarantees or warranties and other rights given to Seller in connection with the construction, maintenance, repair or remodeling of the Improvements, periodic inspections, or the purchase of any of the Personal Property. If no such documents exist, Seller shall furnish its certification to that effect;

3.3.3 Insurance Policies. Copies of certificates evidencing the insurance carried by Seller of the Property;

3.3.4 Other Documents. All data, correspondence, documents, agreements, waivers, notices, applications and other records with respect to the Property relating to transactions with taxing authorities, governmental agencies, utilities, vendors and others with whom Buyer may be dealing from and after the Closing Date; and

3.3.5 Requested Information. Such other documents and information concerning the Property as Buyer may reasonably request.

3.4 Approval/Disapproval of Due Diligence Investigations. Buyer shall approve or disapprove the results of Buyer's Due Diligence Investigation, in the exercise of Buyer's sole discretion, by written notice delivered to Seller no later than the expiration of the Due Diligence Period. Buyer's disapproval shall terminate this Agreement unless, at the time Buyer gives notice of its disapproval, Buyer also notifies Seller of Buyer's desire to enter into negotiations with Seller for the purpose of reaching an accommodation concerning the disapproval. If Buyer so notifies Seller and the parties have not reached a written agreement satisfactory to both of them regarding 5 55852.01006\430652 l l .4
32 Docusign Envelope ID: 0BE25B51-B03A-4B1 D-848B-09EBCC6C600D the disapproval within 10 days after the date of the disapproval notice, Buyer, at its option, may either (a) elect to terminate this Agreement by so notifying Seller and recover the Deposit, or (b) elect to proceed with the transactions contemplated by this Agreement notwithstanding its earlier disapproval. If Buyer fails to deliver to Seller notice of its approval or disapproval of the results of its Due Diligence Investigation, Buyer shall be deemed to have disapproved such results. If Buyer elects to terminate the Agreement, Buyer shall return to Seller all of the Preliminary Documents and Additional Documents previously delivered by Seller to Buyer within 5 business days of such termination, and Escrow shall immediately refund Buyer the Deposit, and Buyer shall have no further obligations to Seller.

3.5 Title Review.
3 .5 .1 Monetary Liens. At its expense, Seller shall remove all I iens on the Property at or prior to the Closing (collectively, "Monetary Liens"): (i) all delinquent taxes, bonds and assessments and interest and penalties thereon (it being agreed that Seller shall not be required to remove any non-delinquent taxes and assessments imposed by any governmental agency that are paid with the property taxes for the Property); and (ii) all other monetary liens, including without limitation all those shown on the Preliminary Title Report (including judgment and mechanics' liens, whether or not liquidated, and mortgages and deeds of trust, with Seller being fully responsible for any fees or penalties incurred in connection therewith).

3.5.3 Buyer's Options. If any Disapproved Title Matters (including the Monetary Liens) have not been removed at least 5 days prior to Closing or provision for their removal at the Closing has not been made to Buyer's satisfaction, Buyer may, at its option: (i) close the purchase of the Property and take title subject to the Disapproved Title Matters which have not been removed; (ii) close the purchase of the Property and cure or remove the Disapproved Title Matters which have not been removed. Buyer may credit the costs of such cure or removal against the Purchase Price by reducing the amount of cash payable by Buyer at the Closing, but only to the extent such costs are expended to remove (A) Monetary Liens referred to in Section 3.5.1 or (B) Disapproved Title Matters which Seller agreed to remove; or (iii) terminate this Agreement in accordance with Section 9 .6.1.
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3.5.4 Failure to Disapprove. If Buyer fails to notify Seller of its approval or disapproval of the Preliminary Title Report, the Survey or the exceptions shown thereon by the end of the Due Diligence Period, then Buyer shall be deemed to have disapproved the same.

ARTICLE 4. CONDITIONS PRECEDENT.

4.1 Buyer's Conditions. Buyer's obligations under this Agreement are expressly subject to the timely fulfillment of the conditions set forth in this Section 4.1 on or before the Closing Date, or such earlier date as is set forth below. Each condition may be waived in whole or in part by Buyer by written notice to Seller.

4.1.1 Due Diligence. Buyer having approved of the results of its Due Diligence Investigation pursuant to Section 3 .4;

4.1.2 Title Review. Buyer having approved of the results of its review of title pursuant to Section 3.5.

4.1.3 Title Policy. Seller having caused the Title Company to deliver to Buyer (a) a CLTA Owner's policy oftitle insurance, provided that Buyer may require an ALTA Owner's Policy if Buyer pays the incremental premium for ALT A coverage ("Title Policy") ( or at Buyer's election a binder therefor) for the Property, or (b) the Title Company's irrevocable commitment to issue such policy of title insurance, (including such coinsurance, reinsurance and endorsements as Buyer shall require), with liability equal to the Purchase Price showing fee title to the Property vested in Buyer and subject only to: (i) the matters and exceptions which were approved by Buyer pursuant to Section 3.5; and (ii) the standard printed exceptions in the form of title policy called for ( collectively, "Conditions of Title").

4.1.4 Performance of Covenants. Seller performing and complying in all material respects with all of the terms of this Agreement to be performed and complied with by Seller prior to or at the Closing.
4 .1.5 Representations and Warranties. The representations and warranties of Seller set forth in Article 5 being true and accurate on the Closing Date, as if made on such date.

4.1.6 Non-Foreign Certification. Seller having executed and delivered to Buyer on or prior to the Closing Date a certification (the "Non-Foreign Certification"), substantially in the form of Exhibit C.

4.1. 7 California Certification. Seller having furnished the residency certification required pursuant to Sections 18805 and 26131 of the California Revenue and Taxation Code ("Form 593") or having authorized Escrow Holder in writing to withhold from the Purchase Price the amounts required to be withheld by such Sections.

4.1.8 Condition of Property. The non-occurrence of any material adverse change to the physical status of the Property between the end of the Due Diligence Period and Closing.

4.1.9 Possession of FF&E's. Buyer obtaining legal possession of all furniture, fixtures, and equipment integral to the operation of the Property, and otherwise owned by Seller. 7 55852.01006\43065211.4
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4.1.10 Simultaneous Closing. Seller shall have caused the Closing to occur simultaneously with the closing for the remaining fifty-percent (50%) undivided interest in and to the Property and the closings for that certain property known as 2535 Laguna Canyon Road

4.1.11 Closing Estoppel Certificates. Seller shall have delivered or caused to be delivered the Closing Estoppel Certificates in accordance with Section 9.3.5.

4.2 Seller's Conditions. Seller's obligations under this Agreement are expressly subject to the timely fulfillment of the conditions set forth in this Section 4.2 on or before the Closing Date, or such earlier date as is set forth below. Each condition may be waived in whole or part by Seller by written notice to Buyer.

4.2.1 Covenants. Buyer performing and complying in all material respects with all of the terms of this Agreement to be performed and complied with by Buyer prior to or at the Closing.

4.2.2 Representations and Warranties. The representations of Buyer set forth in Article 6 being true and accurate on the Closing Date, as if made on such date.

ARTICLE 5. SELLER'S REPRESENTATIONS AND WARRANTIES.

Subject to the Disclaimer of Warranties contained in Section 5.19, and subject to Buyer's opportunity to conduct its Due Diligence Investigation of the Property,] Seller hereby makes the following representations and warranties to Buyer with the understanding that each such representation and warranty is material and is being relied upon by Buyer:

5.1 Defects. The Improvements and the Personal Property are in good condition and repair and are free of any latent or patent design, construction, physical or mechanical defects and there is no actual or threatened settlement, earth movement, termite infestation or damage affecting the Property.

5.2 Compliance. The Property, and the operation thereof, are in compliance with all applicable laws, ordinances, rules, regulations, judgments, orders, covenants, conditions, restrictions, whether federal, state, local, foreign or private, and Seller has not received any notice of any violation of the same. Seller has not received any request either formal or informal, oral or written, that Seller modify or terminate any use of the Property. The zoning of the Property permits the current Improvements and use of the Property, and, there is no pending or to Seller's knowledge, contemplated rezoning. The Property complies with all applicable subdivision laws and all local ordinances enacted thereunder and no subdivision or parcel map not already obtained is required to transfer the Property to Buyer.

5.3 Documents. All of the Preliminary Documents and the Additional Documents which have been delivered or made available to Buyer pursuant to Article 3, and all other documents delivered to Buyer by or on behalf of Seller (a) are true, correct and complete copies of what they purport to be, (b) represent truly the factual matters stated therein, ( c) are in full force and effect, ( d) have not been modified, except as set forth therein and ( e) do not omit any information required to make the submission thereof accurate and complete in all material respects. 8 55852.0\006\430652 l 1.4
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5.4 Taxes and Condemnation. There are no presently pending or, contemplated special taxes or assessments which will affect the Property. There are no presently pending or, to Seller's knowledge, contemplated proceedings to condemn or demolish the Property or any part of it.

5.5 Utilities. All water, sewer, gas, electric, telephone and drainage facilities, and all other utilities required by law or by the normal operation of the Property, are (a) installed to the property lines of the Property, (b) connected to the Property, (c) adequate to service the Property in its present use and to permit full compliance with all requirements of law and normal usage by the occupants of the Property and (d) in good working order and repair. All such utilities and storm and sanitary sewers required for the operation of the Property enter the Land through adjoining public streets or through adjoining private land in accordance with valid public or private easements that will inure to the benefit of Buyer.

5.6 Licenses. Seller has all required licenses, permits (including, without limitation, all building permits and occupancy permits), easements and rights-of-way which are required in order to continue the present use of the Property. Seller has no know ledge of any law or regulation of any governmental authority having jurisdiction which might require the Property to be improved beyond its present state or which might restrict the use and enjoyment of the Property in the manner it is presently being used and enjoyed.

5.7 Contracts/Leases/Occupancy Rights.

5.7.1 The Preliminary Documents include a list, description and copies of all contracts entered into by Seller or its property manager or leasing agent relating to the management, maintenance, leasing or operation of the Property ("Service Contracts"). Except for the Service Contracts, there are no agreements or other obligations to which Seller is party or, to Seller's knowledge, by which it or the Property is bound which may affect the current use of the Property, nor are there any current leases, occupancy or operating agreements in force. Seller has fully performed all the obligations required to be performed by Seller under the Service Contracts, and to Seller's knowledge, the other parties to the same are not in default thereunder.

5.7.2 There are no leases, rental agreements or other claims to possession effecting possession or occupancy of the Property other than the Leases set forth in Exhibit G hereto, and Seller shall not enter into any new leases or renewals and/or modifications of the existing Leases during the term of this Agreement except with the prior written consent of Buyer, which may be withheld in Buyer's reasonable discretion. Seller is not in default under any of the Leases, and all of the Leases are valid, binding, and enforceable in accordance with their respective terms.

5.7.3 There are no collective bargaining agreements, other union contracts of any nature, pension plans or other benefit plans of any nature in existence to which Seller is a party and which affect the Property or the operation thereof.

5.8 Litigation. There are no actions, suits, proceedings, judgments, orders, decrees or governmental investigations pending or threatened against the Property or Seller which could affect the Property or the purchase, use or enjoyment thereof by Buyer. 9 55852.01006\43065211 .4
36 Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D

5.9 Agreements with Governmental Authorities. There are no agreements with governmental authorities, agencies, utilities or quasi-governmental entities which affect the Property except those agreements which are identified in the Preliminary Title Report and those matters which are disclosed by the Survey.

5.10 Hazardous Materials.

5.10.1 Definitions. For purposes of this Agreement:
(a) "Environmental Law(s)" means the Comprehensive
Environmental Response, Compensation, and Liability Act of 1980, 42 U .S.C. Sections 960 I, et ~-, the Resource Conservation and Recovery Act of 1976, 42 U.S.C. Sections 6901 et~-, the Toxic Substances Control Act, 15 U .S.C. Sections 2601 et. ~-, the Hazardous Materials Transportation Act, 49 U.S.C. 1801 et seq., the Clean Water Act, 33 U.S.C. Sections 1251 et~-, The Safe Drinking Water and Toxic Enforcement Act of 1986 (Cal. H&S Code Sections 25249.5- 25249.13), the Carpenter-Preseley-Tanner Hazardous Substance Account Act (Cal. H&S Code Sections 25300 et seq.), and the California Water Code Sections 1300, et seq., as said laws have been supplemented or amended to date, the regulations promulgated pursuant to said laws and any other federal, state or local law, statute, rule, regulation or ordinance which regulates or proscribes the use, storage, disposal, presence, cleanup, transportation or Release or threatened Release into the environment of Hazardous Material.
(b) "Hazardous Material" means any substance which is (i) designated, defined, classified or regulated as a hazardous substance, hazardous material, hazardous waste, pollutant or contaminant under any Environmental Law, as currently in effect or as hereafter amended or enacted, (ii) a petroleum hydrocarbon, including crude oil or any fraction thereof and all petroleum products, (iii) PCBs, (iv) lead, (v) asbestos, (vi) flammable explosives, (vii) infectious materials or (viii) radioactive materials. (c) "Release" means any spilling, leaking, pumping, pouring, emitting, discharging, injecting, escaping, leaching, dumping or disposing into the environment of any Hazardous Material (including the abandonment or discarding of barrels, containers, and other receptacles containing any Hazardous Material).

5.10.2 Representations.
(a) The Property and all existing uses and conditions of the Property are in compliance with all Environmental Laws, and Seller has not received any written notice of violation issued pursuant to any Environmental Law with respect to the Property or any use or • condition thereof.
(b) Neither Seller nor any other present or former owner of the Property has used, handled, stored, transported, released or disposed of any Hazardous Material on, under or from the Property in violation of any Environmental Law. ( c) There is no Release of any Hazardous Material existing on, beneath or from or in the surface or ground water associated with the Property. 10 55852.01006\430652114
37 Docusign Envelope ID: 0BE25851-B03A-481 D-8488-09EBCC6C600D (d) All required permits, licenses and other authorizations required by or issued pursuant to any Environmental Law for the ownership or operation of the Property by Seller have been obtained and are presently maintained in full force and effect. (e) There exists no writ, injunction, decree, order or judgment outstanding, nor any lawsuit, claim, proceeding, citation, directive, summons or investigation pending or, to Seller's knowledge, threatened pursuant to any Environmental Law relating to (i) the ownership, occupancy or use of any portion of the Property by Seller or occupant or user of any portion of the Property or any former owner of any portion of the Property, (ii) any alleged violation of any Environmental Law by Seller or occupant or user of any portion of the Property or any former owner of any portion of the Property or (iii) the suspected presence, Release or threatened Release of any Hazardous Material on, under, in or from any portion of the Property. (t) There are no above-ground or underground tanks located on the Property used or formerly used for the purpose of storing any Hazardous Material. (g) No asbestos abatement or remediation work has been performed on the Property.
(h) There is no PCB-containing equipment or PCB-containing material located on or in the Property.

5.11 Title to the Property. Seller has good and marketable title to the Property, subject to the Conditions of Title. There are no outstanding rights of first refusal or first look, options to purchase, rights of reverter, or claim of right relating to the transfer or sale of the Property or any interest therein. To Seller's knowledge, there are no unrecorded or undisclosed documents or other matters which affect title to the Property. No person holding a security interest in the Property or any part thereof has the right to consent or deny consent to the sale of the Property as contemplated herein, and Seller has the right to pay off such person and to remove all such liens as of the Closing Date. Seller has enjoyed the continuous and uninterrupted quiet possession, use and operation of the Property.

5.12 Seller's Authority. Seller has the requisite power and authority to own and operate the Property and conduct its business where the same is now owned or operated. The execution, delivery and performance of this Agreement by Seller have been duly and validly authorized by all necessary action and proceedings, and no further action or authorization is necessary on the part of Seller (or its board of directors or shareholders) in order to consummate the transactions contemplated herein. This Agreement and the other documents executed by Seller in connection herewith are legal, valid and binding obligations of Seller, enforceable in accordance with their respective terms. Neither the execution and delivery of this Agreement by Seller, nor performance of any of its obligations hereunder, nor consummation of the transactions contemplated hereby, shall conflict with, result in a breach of, or constitute a default under, the terms and conditions of the organizational documents pursuant to which Seller was organized, or any indenture, mortgage, deed of trust, agreement, undertaking, instrument or document to which Seller or any affiliate thereof is a party or is bound, or any order or regulation of any court, regulatory body, administrative agency or governmental body having jurisdiction over Seller. 11 55852.01006\430652 l 1.4
38 Oocusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D 5 .13 Parking. Seller has received no written notice from any governmental agency that the parking spaces on the Property are in violation of law. 5 .14 Zoning. Seller has received no written notice from any governmental agency that the Property is not in compliance with zoning requirements and laws.

5.15 Foreign Person. Seller is not a "foreign person" within the meaning of Section 1445(f) of the Internal Revenue Code.

5.16 No Employees. There are no on-site employees of Seller at the Property. On or before Closing, Seller shall terminate any employees at the Property and any residence or occupancy thereof, if any, and Buyer shall have no obligation to employ or continue to employ any individual employed by Seller or its affiliates in connection with the Property, if any.

5.17 Inspections. The Preliminary Documents include a full description of (a) all inspections of the Property by any governmental agency or insurance company occurring within three (3) years prior to the Effective Date, (b) all matters which were noted by such governmental agency or insurance company as requiring correction, requesting or recommending modifications or termination of uses of the Property and ( c) the present status of each such noted matter.

5.18 Misstatements and Omissions. Neither the representations and warranties made by Seller in this Article 5 nor elsewhere in this Agreement contain any untrue statement or any omission of a material fact. Seller has no documents in its possession, nor has any knowledge, that omits material facts related to the property or which would contradict or negate any of its representations contained in this Agreement.

ARTICLE 6. BUYER'S REPRESENTATIONS AND WARRANTIES.

Buyer makes the following representation and warranties to Seller with the understanding that each such representation and warranty is material and is being relied upon by Seller:

6.1 Buyer's Authority. The execution, delivery and performance of this Agreement by Buyer have been duly and validly authorized by all necessary action and proceedings, and no further action or authorization is necessary on the part of Buyer in order to consummate the transactions contemplated herein.

6.2 No Conflict. Neither the execution nor delivery of this Agreement by Buyer, nor performance of any of its obligations hereunder, nor consummation of the transactions contemplated hereby, shall conflict with, result in a breach of, or constitute a default under, the terms and conditions of the organizational documents pursuant to which Buyer was organized, or any agreement to which Buyer is a party or is bound, or any order or regulation of any court, regulatory body, administrative agency or governmental body having jurisdiction over Buyer.

ARTICLE 7. SURVIVAL OF REPRESENTATIONS AND WARRANTIES.
7 .1 Survival of Warranties. Buyer and Seller agree that each representation and warranty, covenant by the respective parties contained herein or made in writing pursuant to this 12 55852 01006\43065211 .4
39 Docusign Envelope ID: 0BE25B51-B03A-4B1 D-848B-09EBCC6C600D Agreement are intended to and shall be deemed made as of the date of this Agreement or such writing and again at the Closing, shall be deemed to be material, and unless expressly provided to the contrary shall survive the execution and delivery of this Agreement, the Deed and the Closing.

7.2 Notice of Changed Circumstances. If either party becomes aware of any fact or circumstances which would render false or misleading a representation or warranty made by such party, then it shall immediately give notice of such fact or circumstance to the other party, but such notice shall not relieve any party of any liabilities or obligations with respect to any representation or warranty.

ARTICLE 8. SELLER'S PRECLOSING COVENANTS.

Seller shall comply with the covenants contained in this Article 8 from the Effective Date through the Closing Date unless Buyer consents otherwise in writing. Buyer may grant or withhold any such consent requested by Seller in Buyer's sole discretion.

8.1 Contracts and Documents. Seller shall not, without Buyer's approval, not to be unreasonably withheld or delayed, (a) amend or waive any right under any Service Contract, Lease, Preliminary Document or Additional Document, or (b) enter into any material agreement of any type affecting the Property that would survive the Closing Date.

8.2 Insurance. Seller shall maintain or cause to be maintained in full force and effect its present insurance policies for the Property.

8.3 Compliance with Obligations. Seller shall fully and timely comply with all obligations to be performed by it under the Service Contracts, the other Preliminary Documents, the Conditions of Title and all permits, licenses, approvals and laws, regulations and orders applicable to the Property.

8.4 No Transfers. Seller shall not sell, encumber or otherwise transfer any interest in all or any portion of the Property, or agree to do so.

8.5 Termination of Contracts. Seller at its sole cost and expense shall terminate all of the Service Contracts described in Section 5.7 at or before the Closing Date, except for those contracts which Buyer expressly agrees to assume and which are actually assumed by Buyer pursuant to Section 9.3.3.

8.6 Maintenance. At its sole cost and expense, Seller shall operate and maintain the Property such that on the Closing Date the Property shall be in at least as good a condition and repair as on the Effective Date, reasonable wear and tear excepted. Without limiting the generality of the foregoing, Seller shall, at a minimum, spend such amounts for repair and maintenance as are consistent with its prior practice. Seller shall promptly advise Buyer of any significant repair or improvement required to keep the Property in such condition. Seller shall not make any material alterations to the Property, or remove any of the Personal Property therefrom, without Buyer's prior consent, unless such Personal Property so removed is simultaneously replaced with new Personal Property of similar quality and utility.
13 55852.01006\430652 l l.4
40 Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D

8.7 Best Efforts. Seller shall use its best efforts to cause the conditions set forth in Section 4.1 to be satisfied by the Closing Date, and Seller shall not take or permit any action that would result in any of the representations and warranties set forth in Article 5 becoming false or incorrect.

ARTICLE 9. CLOSING.
9 .1 Time. Provided all conditions set forth in Article 4 have been either satisfied or waived, and to the extent such date has not been extended pursuant to Section 3. I. I, above, the parties shall close this transaction (the "Closing"), on February 28, 2025 (the "Closing Date"), as such date may be extended by the provisions of Article 10. Notwithstanding the foregoing, Buyer shall have the right to extend the Closing Date to March 28, 2025 by providing written notice on or before the original Closing Date ("Closing Extension Notice") and depositing into Escrow the Extension Deposit in accordance with Section 2.2.4, above.

9.2 Escrow. This Article 9, together with such additional instructions as Fidelity Title Company, Attention Brenna Ryan, 4400 MacArthur Blvd., Suite 200, Newport Beach, CA 92660, California (telephone: 949-623-3038; e-mail: [email protected], [email protected] ("Escrow Holder"), shall reasonably request and the parties shall agree to, shall constitute the escrow instructions to Escrow Holder. If there is any inconsistency between this Agreement and the Escrow Holder's additional escrow instructions, this Agreement shall control unless the intent to amend this Agreement is clearly stated in said additional instructions. Buyer and Seller shall cause Escrow Holder to execute and deliver a counterpart of this Agreement to each of them. If the Title Company does not serve as the Escrow Holder, the Title Company shall provide a letter to Buyer, in form and content acceptable to Buyer, pursuant to which the Title Company accepts responsibility and liability for the acts and omissions of Escrow Holder in discharging Escrow Holder's obligations hereunder, including, without limitation, any acts or omissions of Escrow Holder relating to the Title Company's commitment to issue the Title Policy, the receipt, recordation or delivery of any documents placed into escrow, and the receipt and disbursement of any funds placed into escrow.

9.3 Seller's Deposit of Documents and Funds Into Escrow. Seller shall deposit into escrow on or before Closing (unless otherwise set forth herein) the following documents:

9.3.1 A duly executed and acknowledged grant deed, in the form acceptable to Buyer, conveying the Property to Buyer ("Grant Deed") in the form attached as Exhibit F;

9.3.2 A duly executed bill of sale, in the form of Exhibit D, conveying the Personal Property to Buyer free and clear of liens, encumbrances and restrictions ("Bill of Sale");

9.3.3 A duly executed assignment, in the form of Exhibit E, assigning to Buyer all of Seller's interest (a) in the Plans, (b) in all warranties of which Seller is the beneficiary with respect to the Property, (c) in all intangible assets of the Property, and (d) in the Service Contracts which Buyer has elected to assume (the "General Assignment");

9.3.4 A duly executed assignment, in the form of Exhibit H, assigning to Buyer all of Seller's interest in and to the Leases (the "Assignment of Leases"); 14 55852.0 I 006\43065211.4
41 Docusign Envelope ID: 0BE25851-B03A-481D-8488-09EBCC6C600D

9.3.5 No later than three (3) business days prior to the Closing Seller shall have delivered to Buyer estoppel certificates ("Closing Estoppel Certificates") in a form acceptable to Buyer, dated no earlier than fifteen (15) days prior to the Closing and disclosing no defaults or alleged defaults by either Seller or the Tenant under such Lease or any Tenant bankruptcy, or any dispute between Seller and a Tenant, or any modification in rent, expiration date or other material Lease term reflected in the Lease Documentation;
9 .3 .6 No more than 10 days but no less than 5 days before the expiration of the Due Diligence Period, the originals ( or copies if originals are unavailable) of the Service Contracts Buyer has elected to assume, if any, and estoppel certificates from the other parties to such Service Contracts in form and substance satisfactory to Buyer;

9.3.7 All costs of Closing, including, but not limited to, the CLTA increment of the premium for the Title Policy, recording fees (if any), transfer taxes (if any) and fees, one-half of the escrow fees, sales tax and any other costs of Closing customarily paid by sellers of real property, plus or minus prorations as provided in Section 9.8; provided that, subject to Section 9.6, Buyer and Seller shall bear their own attorneys' fees and costs in connection with the negotiation and preparation of this Agreement and the transactions completed by this Agreement;

9.3.8 Seller's Non-foreign Certification;

9.3.9 All records and files relating to the management or operation of the Property, including, without limitation, property tax bills, insurance, and property taxes; and

9.3.10 Such additional documents, including written escrow instructions consistent with this Agreement, as may be necessary or desirable for conveyance of the Property in accordance with this Agreement.

9.3.11 Form593;

9.3.12 Notice letter to tenants regarding new owner and addresses for payment of rent payment ("Tenant Notice Letter").

9.4 Deliveries Outside of Escrow. Notwithstanding Section 9.3, Seller and Buyer may elect to deliver the documents described in Section 9.3 outside of escrow (other than documents which are to be recorded) by giving Escrow Holder a joint written notice of such election, specifying the documents which will be so delivered outside of escrow. Upon receipt of such notice, Escrow Holder shall have no further obligation concerning such specified documents.

9.5 Buyer's Deposit of Documents and Funds. Buyer shall deposit into escrow:

9.5.1 The Purchase Price in accordance with the provisions of Article 2, plus or minus prorations as provided in Section 9 .8, by electronic transfer of federal funds to Escrow Holder, on or before the Closing Date;
9 .5 .2 A duly executed counterpart of the Assignment of Leases; and 15 55852.0 I 006\43065211.4
42 Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D

9.5.3 Such additional documents, including written escrow instructions consistent with this Agreement, as may be necessary or desirable for conveyance of the Property in accordance with this Agreement.

9.6 Default, Termination and Remedies.
9 .6.1 Buyer's Termination. This Agreement shall automatically terminate without further notice or action by Buyer upon the occurrence of any of the following events, provided that Buyer is not then in material breach of this Agreement: (a) any condition to Closing contained in Section 4.1 has not been satisfied or waived by Buyer by the Closing Date; or (b) Buyer having exercised its right to terminate this Agreement pursuant to Section 3.4 (disapproval of Due Diligence Investigation), Section 3 .5 ( disapproval of title) or Article 10 ( damage or condemnation). In such event, the parties shall have no further obligation to each other except for those obligations that specifically survive the termination of this Agreement. If this Agreement terminates as a result of Seller's material breach of this Agreement, Buyer shall have all remedies it may have hereunder or at law as a result of such occurrence, including the remedy of specific performance.

9.6.2 Seller's Termination. Provided that Seller is not then in material breach of this Agreement, this Agreement shall automatically terminate without further notice or action by Seller if any condition to Closing contained in Section 4.2 has not been satisfied or waived by Seller by the Closing Date.

9.6.3 Release from Escrow. Upon termination of this Agreement pursuant to Section 9 .6.1 or 9 .6.2, Escrow Holder shall promptly return to Buyer and Seller, respectively, all documents and monies deposited by them into escrow without prejudice to their rights and remedies hereunder.

9.6.4 Remedies.
(a) Buyer's Remedies. If Seller breaches this Agreement, Buyer shall be entitled to pursue all remedies permitted herein and by law, including the remedy of specific performance. No termination of the escrow by Buyer following a breach by Seller shall be deemed to waive such breach or any remedy otherwise available to Buyer. (b) Seller's Remedies/Liquidated Damages. IF BEFORE THE CLOSE

OF ESCROW BUYER FAILS TO COMPLY WITH OR PERFORM BUYER'S OBLIGATIONS UNDER THIS AGREEMENT AND (EXCEPT AS OTHERWISE PROVIDED IN SECTION 9.6)

DOES NOT CURE SUCH FAILURE WITHIN TEN BUSINESS DAYS AFTER SELLER'S WRITTEN NOTICE OF SUCH FAIL URE, THEN SELLER MAY THEREAFTER: (I) TERMINATE THIS AGREEMENT; (II) RECEIVE AND RETAIN THE DEPOSIT AS

LIQUIDATED DAMAGES IF SUCH DEFAULT OCCURS AFTER BUYER'S APPROVAL PERIOD; AND (III) EXERCISE THE OTHER RIGHTS AND REMEDIES RESERVED BY SELLER AS PROVIDED IN THIS SECTION. IN THE EVENT SELLER TERMINATES THIS

AGREEMENT BY REASON OF BUYER'S DEFAULT, BUYER AND SELLER SHALL BE

RELIEVED OF ANY FURTHER OBLIGATION TO EACH OTHER WITH RESPECT TO THIS

AGREEMENT AND THE PROPERTY EXCEPT FOR ANY OBLIGATIONS WHICH 16 55852.01006\43065211.4
43 Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D EXPRESSLY SURVIVE. IT IS EXPRESSLY UNDERSTOOD AND AGREED BY BUYER AND SELLER: THAT SELLER WILL INCUR SUBSTANTIAL DAMAGES AS A RESULT

OF ANY FAILURE BY BUYER TO COMPLY WITH OR PERFORM BUYER'S OBLIGATIONS UNDER THIS AGREEMENT; THAT IT IS EXTREMELY DIFFICULT AND

IMPRACTICAL TO CALCULATE AND ASCERTAIN AS OF THE EFFECTIVE DATE OF

THIS AGREEMENT THE ACTUAL DAMAGES WHICH WOULD BE SUFFERED IN SUCH EVENT BY SELLER; AND THAT THE DEPOSIT IS A REASONABLE ESTIMATE OF THE

EXTENT TO WHICH SELLER MAY BE DAMAGED BY BUYER'S DEFAULT IN LIGHT

OF THE DIFFICULTY THE PARTIES WOULD HAVE IN DETERMINING SELLER'S ACTUAL DAMAGES AS A RESULT OF SUCH DEFAULT BY BUYER.

SELLEK~: I~S. BUYER'S INITIALS
(c) Waiver of Specific Performance. SELLER HEREBY WAIVES

THE RIGHT TO MAINTAIN AN ACTION FOR SPECIFIC PERFORMANCE OF BUYER'S

OBLIGATION TO PURCHASE THE PROPERTY AND SELLER AGREES THAT SELLER

CAN BE ADEQUATELY COMPENSATED IN MONEY DAMAGES IF BUYER FAILS TO PURCHASE THE PROPERTY IN BREACH OF THIS AGREEMENT. SELLER

ACKNOWLEDGES THAT THE PROVISIONS OF THIS SECTION ARE A MATERIAL PART

OF THE CONSIDERATION BEING GIVEN TO BUYER FOR ENTERING INTO THIS

AGREEMENT AND THAT BUYER WOULD BE UNWILLING TO ENTER INTO THIS AGRE~'[ tl) TIIE ABSENCE OF THE PROVISIONS OF THIS SECTION.

SELLER'S INITIALS BUYER'S INITIALS

9.7 Closing. When Escrow Holder has received all documents and funds identified in Sections 9.3 and 9.5, has received notification from Buyer and Seller that all conditions to Closing to be satisfied outside of escrow have been satisfied or waived and Title Company is irrevocably committed to issue the Title Policy, then, and only then, Escrow Holder shall:

9.7.1 Record the Grant Deed;

9.7.2 Cause the Title Company to issue the Title Policy to Buyer;

9.7.3 To the extent not otherwise delivered to Buyer outside of escrow, deliver to Buyer: (a) a conformed copy (showing all recording information thereon) of the Grant Deed; (b) fully executed original counterparts of the Bill of Sale, the General Assignment; and ( c) the Seller's Certificate, the Service Contracts referred to in Section 9.3.6, the Non-foreign Certification;

9.7.4 Deliver the Purchase Price (as adjusted pursuant to Section 9.8) to Seller;

9.7.5 Deliver or mail Tenant Notice Letter to tenants for each Lease.

Escrow Holder shall prepare and sign closing statements showing all receipts and disbursements and deliver copies to Buyer and Seller and, if applicable, shall file with the Internal 17 55852.01006\430652 l l.4
44 EXPRESSLY SURVIVE. IT IS EXPRESSLY UNDERSTOOD AND AGREED BY BUYER AND SELLER: THAT SELLER WILL INCUR SUBSTANTIAL DAMAGES AS A RESULT OF ANY FAILURE BY BUYER TO COMPLY WITH OR PERFOR!\1 BUYER'S OBLIGATIONS UNDER THIS AGREEMENT; THAT IT IS EXTREMELY DIFFICULT AND

IMPRACTICAL TO CALCULATE AND ASCERTAIN AS OF THE EFFECTIVE DATE OF

THIS AGREEMENT THE ACTUAL DAMAGES WHICH WOULD BE SUFFERED IN SUCH EVENT BY SELLER; AND THAT THE DEPOSIT IS A REASONABLE ESTIMATE OF THE

EXTENT TO WHICH SELLER MAY BE DAMAGED BY BUYER'S DEFAULT IN LIGHT

OF THE DIFFICULTY THE PARTIES WOULD HAVE IN DETERMINING SELLER'S ACTUAL DAMAGES AS A RESULT OF SUCH DEFAULT BY BUYER.
~L

SELLER'S INITIALS BUYER'S INITIALS
(c) Waiver of Specific Performance. SELLER HEREBY WAIVES

THE RIGHT TO MAINTAIN AN ACTION FOR SPECIFIC PERFORMANCE OF BUYER'S

OBLIGATION TO PURCHASE THE PROPERTY AND SELLER AGREES THAT SELLER

CAN BE ADEQUATELY COMPENSATED IN MONEY DAMAGES IF BUYER FAILS TO PURCHASE THE PROPERTY IN BREACH OF THIS AGREEMENT. SELLER

ACKNOWLEDGES THAT THE PROVISIONS OF THIS SECTION ARE A MATERIAL PART OF THE CONSIDERATION BEING GIVEN TO BUYER FOR ENTERING. INTO THIS

AGREEMENT AND THAT BUYER WOULD BE UNWILLING TO ENTER INTO THIS AGREEMENT IN THE ABSENCE OF THE PROVISIONS OF THIS SECTION.

SELLER'S INITIALS BUYER'S INITIALS

9.7.1 Record the Grant Deed;

9.7.2 Cause the Title Company to issue the Title Policy to Buyer;

9.7.3 To the extent not otherwise delivered to Buyer outside of escrow, deliver to Buyer: (a) a confonned copy (showing all recording infonnation thereon) of the Grant Deed; (b) fully executed original counterparts of the Bill of Sale, the General Assignment; and (c) the Seller's Certificate, the Service Contracts referred to in Section 9.3.6, the Non-foreign Certification;

9. 7.4 Deliver the Purchase Price (as adjusted pursuant to Section 9.8) to Seller;

9.7.5 Deliver or mail Tenant Notice Letter to tenants for each Lease.

Escrow Holder shall prepare and sign closing statements showing alJ receipts and disbursements and deliver copies to Buyer and Seller and, if applicable, shall file with the Internal 17 55852.01006\43065211.4
! lrTTl"l""lf'"Ffli .Rnimr.TT-"• -iMl•IFi•l'"''loilf:,A•HMil&,IJi-ii41il...+f;TTr.1' ,llfrr.JffiCJltT:,JI 1fITTI ··;"1TT"'1,rlTrlr-l'lll~l'fl 1a11,~:;aT,17111r"ll:-':5i-,·;·-, --r.T1,r· -.,,-,·1-11iWWWIIWWWiA•1, .. nno1o1· I 45 Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D Revenue Service (with copies to Buyer and Seller) the reporting statement required under Section 6045(e) of the Internal Revenue Code.

9.8 Prorations. Subject to the other provisions of this Section 9.8, all receipts and disbursements of the Property will be prorated as of 11 :59 p.m. on the day immediately preceding the Closing Date. Not less than five business days prior to the Closing, Seller shall submit to Buyer for its approval a tentative prorations schedule showing the categories and amounts of all prorations proposed, including all rents and operating expenses. Security deposits shall be credited to Buyer from Seller proceeds. The parties shall agree on a final prorations schedule prior to the Closing and shall deliver the same to Escrow Holder. If following the Closing either party discovers an error in the prorations statement, it shall notify the other party and the parties shall promptly make any adjustment required. The parties agree that any trailing bills that pertain to the Property operations before the Closing Date, which are not available as of Closing, may be presented to Buyer for proration and reimbursement up to forty five ( 45) days after Closing. Failure to provide any bills by such date shall be a waiver by Seller of such reimbursement and Buyer shall have no further obligation for any such bills and Property expenses. This section 9.8 shall survive Closinw, Cc:) .

SELLER INITIALS

9.8.1 Capital Expenditures and Accounts Payable. All capital and other improvements (including labor and material) which have been performed or contracted for, by or on behalf of Seller prior to the Closing Date, and all sums due for accounts payable which have been incurred with respect to the Property prior to the Closing Date shall be paid by Seller and shall be subject to the indemnification provisions of Section 7.3. Buyer shall furnish to Seller for payment any bills for such period received after the Closing Date, and Buyer shall have no further obligation with respect thereto.

9.8.2 Property Taxes. General real estate taxes, water or sewer rates and charges (if not metered), personal property taxes, or any other governmental tax or charge levied or assessed against the Property ( collectively, the "Taxes"), relating to the Property and payable during the year in which Closing occurs shall not be prorated between Seller and Buyer in Escrow.

Upon recordation of the Grant Deed, Buyer will request cancellation of the real property taxes for the Property pursuant to California Revenue and Taxation Code Section 4986. If current taxes have not yet been paid as of the Closing Date, then at Closing Seller shall pay through Escrow or out of Seller's proceeds, the full amount of the installment applicable for the period in which Closing occurs. Seller shall be entitled to a refund of any excess payment made to the taxing authority on account of the Property, including any taxes paid by Seller and applicable to any period from and after the Closing Date. The taxing authority will notify Seller of any refund due Seller resulting from the subject acquisition after a review and any subsequent proration of the property tax assessment by the county assessor. Seller retains the right, following close of escrow, to apply to the appropriate governmental authority/ies for refund of real property taxes pursuant to Revenue and Taxation Code Section 5096.7 (or such other applicable law), and Buyer shall reasonably cooperate with Seller's efforts to obtain said refund. 18 55852.01006\430652 l l .4
46 Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D

9.8.3 Utility Charges. All utility charges shall be prorated as of the Closing Date and Seller shall obtain a final billing therefor. All utility security deposits, if any, shall be retained by Seller.

9.9 Possession. Seller shall deliver exclusive right of possession of the Property to Buyer on the Closing Date, subject only to the Conditions of Title.

ARTICLE 10. DAMAGE, DESTRUCTION AND CONDEMNATION.

This Agreement shall be governed by the Uniform Vendor and Purchaser Risk Act as set forth in Section 1662 of the California Civil Code as supplemented and modified by this Article 10. Seller shall promptly notify Buyer in writing of any material damage to the Property and of any taking or threatened taking of all or any portion of the Property. Within a reasonable period of time after receipt of such notice, Buyer shall determine whether a material part of the Property has been damaged or whether such taking or threatened taking has affected or will affect a material part of the Property. As used herein, (a) the destruction of a "material part" of the Property shall be deemed to mean an insured or uninsured casualty to the Property having an estimated cost of repair which in the reasonable judgment of Buyer equals or exceeds $200,000 and (b) a taking by eminent domain of a portion of the Property shall be deemed to affect a "material part" of the Property if in the reasonable judgment of Buyer the estimated value of the portion of the Property taken exceeds $200,000. Upon making its determination, Buyer shall notify Seller in writing of the results of such determination. Buyer may elect, by written notice delivered to Seller within 30 days after giving Seller notice of such determination, to terminate this Agreement in accordance with Section 9.6.1 if a material part of the Property has been damaged or if such taking has affected or will affect a material part of the Property. If Buyer does not so terminate, (i) in the case of damage to a material part of the Property, Seller shall assign to Buyer at the Closing its right to recover under any insurance policies covering such damage and shall pay Buyer at the Closing the amount of the deductible, if any, and (ii) in the case of a threatened or actual taking of a material part of the Property, Seller shall assign to Buyer at the Closing Seller's entire right, title and interest in the proceeds thereof. If between the Effective Date and the Closing Date the Property suffers damage which is not material, Seller shall repair such damage at its expense prior to the Closing, and the Closing Date shall be extended for a reasonable period of time not to exceed 30 days to allow for completion of such repairs. The Closing Date shall be extended as necessary to permit Buyer to exercise its rights under this Article

10. ARTICLE 11. GENERAL.

11.1 Notices. All notices, demands, approvals, and other communications provided for in this Agreement shall be in writing and shall be effective (a) when personally delivered to the recipient at the recipient's address set forth below; (b) five business days after deposit in a sealed envelope in the United States mail, postage prepaid, by registered or certified mail, return receipt requested, addressed to the recipient as set forth below; or (c) one business day after deposit with a recognized overnight courier or delivery service, addressed to the recipient as set forth below, whichever is earlier. If the date on which any notice to be given hereunder falls on a Saturday, Sunday or legal holiday, then such date shall automatically be extended to the next business day immediately following such Saturday, Sunday or legal holiday. Email notices may be used for 19 55852.01006\430652 l 1.4
47 Docusign Envelope ID: 0BE25B51-B03A-4B1 D-848B-09EBCC6C600D convenience only, unless otherwise agreed by the parties in writing, and shall be deemed delivered one (1) business day after delivery if sent after 5 pm, or received the same day if sent on a business day between 8 am and 5 pm, and a duplicate shall be sent via USPS on the same day as the email.

The addresses for notice are:

SELLER:

With a copy to:

BUYER:

With a copy to:

PHILIP E. BURKHARDT, Trustee
7042 Palomino Drive
Sanger, CA, 92657
Phone: (704) 245-2690
Email: [email protected]
Casey Estate & Business Planning,
a Professional Law Corporation.

Attn Wayne J. Casey
610 Newport Center Drive, Suite 840
Newport Beach, CA 92660
Phone: (949) 640-5200
Email: [email protected]

CITY OF LAGUNA BEACH
Attn: Jeremy Frimond
505 Forest Ave.

Laguna Beach, CA 92561
Email: [email protected]
Best Best & Krieger
Attn: Megan Garibaldi
18101 Von Karman Ave., Suite 1000
Irvine, CA 92612
Phone: (949) 263-6592
Email: [email protected]
Either party may change its address by written notice to the other given in the manner set forth above.

11.2 California Environmental Quality Act. Buyer's future use and/or development of the Property is expressly conditioned upon compliance with the California Environmental Quality Act ("CEQA") as Buyer shall conduct environmental review pursuant to CEQA prior to taking any discretionary action with regard to any proposed development of the Property.

11.3 Joint and Several Liability of Seller. The obligations, representations, warranties, and covenants of Seller under this Agreement shall be the joint and several obligations of each individual or entity comprising Seller. Each such individual or entity shall be fully responsible for 20 55852.01006\43065211 .4
48 Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D the full performance of all obligations under this Agreement, regardless of the performance or default of any other individual or entity comprising Seller. Buyer may, at its sole discretion, seek recourse, enforcement, or remedy against any one or more of such individuals or entities without seeking recourse against the others, and no such action shall release any other individual or entity comprising Seller from their obligations under this Agreement.

11.4 Entire Agreement. This Agreement and the Schedules and Exhibits hereto contain the entire agreement and understanding between Buyer and Seller concerning the subject matter of this Agreement and supersede all prior agreements, including any previous letter of intent or terms, understandings, conditions, representations and warranties, whether written or oral, made by Buyer or Seller concerning the Property or the other matters which are the subject of this Agreement.

11.5 Amendments and Waivers. No addition to or modification of this Agreement shall be effective unless set forth in writing and signed by the party against whom the addition or modification is sought to be enforced. The party benefited by any condition or obligation may waive the same, but such waiver shall not be enforceable by another party unless made in writing and signed by the waiving party.

11.6 Invalidity of Provision. If any provision of this Agreement as applied to either party or to any circumstance shall be adjudged by a court of competent jurisdiction to be void or unenforceable for any reason, the same shall in no way affect (to the maximum extent permissible by law) any other provision of this Agreement, the application of any such provision under circumstances different from those adjudicated by the court, or the validity or enforceability of this Agreement as a whole.

11.7 References. Unless otherwise indicated, (a) all Article, Section, Schedule and Exhibit references are to the articles, sections, schedules and exhibits of this Agreement, and (b) all references to days are to calendar days. All the Schedules and Exhibits attached hereto are incorporated herein by this reference. Whenever under the terms of this Agreement the time for performance of a covenant or condition falls upon a Saturday, Sunday or California state holiday, such time for performance shall be extended to the next business day. The headings used in this Agreement are provided for convenience only and this Agreement shall be interpreted without reference to any headings. The masculine, feminine or neuter gender and the singular or plural number shall be deemed to include the others whenever the context so indicates or requires.

11.8 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California applicable to contracts made and to be performed in California.

11.9 Confidentiality and Publicity. Buyer is a public entity and as such, this Agreement, upon its presentation for approval at Buyer's City council at a duly called and agendized public meeting, shall be subject to the Public Records Act and the Freedom of Information Act. No press release or other public disclosure may be made by Seller or any of its agents regarding Buyer's intent for this Property this transaction without the prior consent of Buyer. 21 55852.01006\43065211.4
49 Docusign Envelope ID: 0BE25B51-B03A-4B1 D-848B-09EBCC6C600D

11.10 Time. Time is of the essence in the performance of the parties' respective obligations under this Agreement.

11. I I Attorneys' Fees. In the event of any legal or equitable proceeding to enforce any of the terms or conditions of this Agreement, or any alleged disputes, breaches, defaults or misrepresentations in connection with any provision of this Agreement, the prevailing party in such proceeding shall be entitled to recover its reasonable costs and expenses, including, without limitation, reasonable attorneys' fees and costs of defense paid or incurred in good faith.

11.12 Assignment. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors and assigns. However, Seller shall not have the right to assign all or any portion of its interest in this Agreement without Buyer's prior written consent.

Buyer shall have the right to assign all or any portion of its interest in this Agreement, or substitute for itself a nominee, upon notice to Seller not later than three (3) days prior to the Closing Date.

Any permitted assignment shall not relieve Buyer of its obligations hereunder, and Buyer shall • remain fully liable for the performance of all terms and conditions unless otherwise agreed to by Seller.

11.13 Further Assurances. Seller, at any time before or after Closing, shall, at its own expense, execute, acknowledge and deliver any further deeds, assignments, conveyances and other assurances, documents and instruments of transfer reasonably requested by Buyer and shall take any other action consistent with the terms of this Agreement that may reasonably be requested by Buyer for the purpose of transferring and confirming to Buyer, or reducing to Buyer's possession, any or all of the Property or otherwise carrying out the terms of this Agreement.

11.14 Cooperation With Exchange. Buyer agrees to cooperate with the other if Seller intends to accomplish a tax-deferred exchange pursuant to Section 1031 of the Internal Revenue Code of 1986. Buyer and/or Seller may assign this Agreement to an exchange intermediary for the purpose of facilitating such an exchange by the assigning party. Buyer's duty to cooperate shall be limited to the transfer of money to Seller or Seller's designee in exchange for the Property, and in no event shall Buyer act as purchaser or acquirer of any exchange property. Seller shall indemnify and defend and hold Buyer harmless from any claims, loss, damages or liability arising out of participation in an exchange.

11.15 No Third Party Beneficiaries. Nothing in this Agreement, express or implied, is intended to confer any rights or remedies under or by reason of this Agreement on any person other than the parties to it and their respective permitted successors and assigns, nor is anything in this Agreement intended to relieve or discharge any obligation of any third person to any party hereto or give any third person any right of subrogation or action over against any party to this Agreement.

11.16 Remedies Cumulative. The remedies set forth in this Agreement are cumulative and not exclusive to any other legal or equitable remedy available to a party.

11.17 Commissions, Indemnity, Disclosure. Each party represents to the other party that there is no broker representing such party in the current transaction, and that the representing party has incurred no liability for any brokerage commission or finder's fee arising from or relating to the transactions contemplated by this Agreement. Seller shall be responsible for any broker 22 55852.01006\4306521 I .4
50 commission associated with this purchase. Each party hereby indemnifies and agrees to protect, defend and hold harmless the other party from and against all liability, cost, damage or expense (including without limitation attorneys' fees and costs incurred in connection therewith) on account of any brokerage commission or finder's fee which the indemnifying party has agreed to pay or which is claimed to be due as a result of the actions of the indemnifying party. This Section

11.17 is intended to be solely for the benefit of the parties hereto and is not intended to benefit, nor may it be relied upon by, any person or entity not a party to this Agreement.

11.18 Counterparts/Facsimile/PDF Signatures. This Agreement may be executed in counterparts and when so executed by the parties, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument that shall be binding upon the parties, notwithstanding that the parties may not be signatories to the same counterpart or counterparts. The parties may integrate their respective counterparts by attaching the signature pages of each separate counterpart to a single counterpart. In order to expedite the transaction contemplated herein, facsimile or .pdf signatures may be used in place of original signatures on this Agreement. Seller and Buyer intend to be bound by the signatures on the facsimile or .pdf document, are aware that the other party wiH rely on the facsimile or .pdf signatures, and hereby waive any defenses to the enforcement of the terms of this Agreement based on the form of signature.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date.

BUYER:

City of Laguna Beach,
a California municipal corporation
By: ¥:?vW/\...
v 'S
Name: ~">v:<, \C'tt
Title: C~M~
ATTEST:

APPROVED AS TO FORM:

BEST BEST & KRIEGER LLP
By: Megan . Garibaldi (Jan 17, 202511:53 PST)
City Attorney
23 55852.0 I 006\43065211.4
51 Docusign Envelope ID: 0BE25B51-B03A-4B 1 D-848B-09EBCC6C600D SELLER SIONA TURE PAGE TO PURCHASE AND SALE AGREEMENT - 2535 LAGUNA

CANYON ROAD
55852.01006\43065211 .4
SELLER:

Trust B under the Burkhardt Family Trust
established December 6, 1988
Name: PHILIP E. BURKHARDT
Title: Trustee
24 52
Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D Acceptance by Escrow Holder
Escrow Holder acknowledges receipt of the foreg(?Jng
ntained therein. •••
Dated
,-:--
I--P.,,C'~=--------it----9l200\0
25 55852.01006\43065211.4
53 Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D

EXHIBIT A

LAND DESCRIPTION
Real property in the City of Laguna Beach, County of Orange, State of California, described as follows:

Parcel 1:

That portion of Lot 2 of Fractional Section 13, in Township 7 South, Range 9 West, San Bernardino Base and Meridian described as follows:

Commencing at station 453+00.85, a point on the center line of Laguna Canyon Road, as shown on a map thereof approved by Nat Neff, Superintendent of Highways of Orange County, California, on November 4, 1929, said point being the Northwest corner of a parcel of land described in deed to Arch Craig by The Yoch Company, recorded March 5, 1930 in Book 366, Page 48, Official Records; thence Southerly fol!owing the centerline of Laguna Canyon Road, 1459. 15 feet to the most Westerly corner of the parcel of land conveyed to Patricia M. Goldbar, by deed dated May 27, 1939 and recorded in Book 998, page 253, Official Records, said corner being the true point of beginning of the boundary of the property described herein; thence South 58° 49' West, along the Southwesterly line of said land of Goldbar, 197.18 feet to the most Southerly corner of said land; thence South 17° 59' 28" West 109.90 feet more or less to the Northeasterly corner of the parcel of land conveyed to Georgia Day Robertson, and others by deed dated May 27, 1939 and recorded in Book 1001 Page 119, Official Records; thence North 58° 49' West, along the Northeasterly line of said land of Robertson, 222.26 feet to the center line of Laguna Canyon Road; thence North 31° 11' East; along said center line 107 feet to the true point of beginning.

Parcel 2:

The Northeasterly 107 .0 feet of that certain parcel of land described in a deed to Robert P. Kellogg and Hazel A. Kellogg, recorded October 6, 1944 in Book 1285, Page 357, Official Records, Records of Orange County, State of California.

APN: 632-101-10
Exhibit "A"
55852.01006\43065211 .4
54 Docusign Envelope ID: 0BE25B51-B03A-4B1 D-848B-09EBCC6C600D

EXHIBIT B

PERSONAL PROPERTY INVENTORY
Exhibit "B"
55852.0 I 006\43065211.4
55 Docusign Envelope ID: 0BE25851-B03A-481 D-848B-09EBCC6C600D

EXHIBIT C

TRANSFEROR'S CERTIFICATION OF NON-FOREIGN STATUS
Section 1445 of the Internal Revenue Code of 1986, as amended (the "Code"), provides that a transferee of a U.S. real property interest must withhold tax if the transferor is a foreign person. To inform the CITY OF LAGUNA BEACH, a California municipal corporation (the "Transferee"), that withholding of tax under Section 1445 of the Code will not be required upon the transfer of a U.S. real property interest to the Transferee by PHILIP E. BURKHARDT, Trustee of Trust B under the Burkhardt Family Trust established December 6, 1988, as to an undivided fifty percent (50%) interest (the "Transferor"), the undersigned hereby certifies the following on behalf of the Transferor:

1. The Transferor is not a foreign corporation, foreign partnership, foreign trust or foreign estate (as those terms are defined in the Code and the Income Tax Regulations promulgated thereunder);

2. The Transferor's U.S. employer identification number is 47-6849246; and

3. The Transferor's office address is 7042 Palomino Drive, Sanger, CA 92657.

The Transferor understands that this Certificate may be disclosed to the Internal Revenue Service by the Transferee and that any false statement contained herein could be punished by fine, imprisonment, or both.

Under penalty of perjury I declare that I have examined this Certification and, to the best of my knowledge and belief, it is true, correct and complete, and I further declare that I have authority to sign this document on behalf of the Transferor.

DATED:
55852.01006\43065211.4
_______ ,20_
Trust B under the Burkhardt Family Trust
established December 6, 1988
By: -----------------
Name: PHILIP E. BURKHARDT
Title: Trustee
Exhibit "C"
56 Docusign Envelope ID: OBE25B51-B03A-4B1D-848B-09EBCC6C600D

EXHIBITD

BILL OF SALE
This Bill of Sale (the "Bill of Sale") is made as of ______ , 20_, by PHILIP E. BURKHARDT, Trustee of Trust B under the Burkhardt Family Trust established December 6, 1988 ("Transferor").

1. Transferor hereby assigns all warranties, guarantees and indemnities, whether those warranties are express or implied, and all similar rights which Transferor may have against any other manufacturer or supplier of the Personal property or any portion thereof or against any seller, engineer, contractor or builder, in respect of the Personal Property.

2. Transferor warrants that each item of the Personal Property is in good condition, order and repair and suitable for its intended purpose on the date of this Bill of Sale.

3. Transferor at any time at or after the date of this Bill of Sale shall execute, acknowledge and deliver any further deeds, assignments, conveyances and other assurances, documents and instruments of transfer reasonably requested by Transferee, and shall take any other action consistent with the terms of this Bill of Sale that may reasonably be requested by Transferee for the purpose of granting and confirming to Transferee, or reducing to Transferee's possession, any or all of the Personal Property. If requested by Transferee, Transferor further agrees to prosecute or otherwise enforce in its own name for the benefit of Transferee any claims, rights or benefits included in the Personal Property that require prosecution or enforcement in Transferor's name. Transferor also hereby appoints Transferee as its agent to act in Transferor's name and on Transferor's behalf to take any action necessary to effect the transfer of any of the Personal Property to Transferee, or prosecute or otherwise enforce any claims, rights or benefits included in the Personal Property in Transferor's name, including bringing suit in Transferor's name.

4. This Bill of Sale shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, executors, administrators, successors and assigns.

DATED: ______ , 20_.

TRANSFEROR:

Exhibit "D"
55852.01006\43065211.4
57 Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D 55852.01006\430652 l 1.4
Trust B under the Burkhardt Family Trust
established December 6, 1988
By:------------------
Name: PHILIP E. BURKHARDT
Title: Trustee
2 58
Docusign Envelope ID: 0BE25B51-B03A-4B1 D-848B-09EBCC6C600D SCHEDULE 1

PERSONAL PROPERTY INVENTORY
All Personal Property existing at the Real Property as of the Closing Date Exhibit "D"
55852.01006\430652 l l.4
59 Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D

EXHIBITE

GENERAL ASSIGNMENT
This Assignment (the "Assignment") is dated for reference purposes only as of _______ , by PHILIP E. BURKHARDT, Trustee of Trust B under the Burkhardt Family Trust established December 6, 1988 ("Assignor").

FOR VALUABLE CONSIDERATION, as set forth in that certain Agreement of Purchase and Sale and Joint Escrow Instructions dated ___ , 20_ (the "Agreement"), Assignor hereby assigns and transfers to the CITY OF LAGUNA BEACH, a California municipal corporation ("Assignee"), an undivided fifty percent (50%) interest in the following:

A. All equipment leases, service and/or maintenance agreements and contracts relating to the Real Property (collectively, the "Contracts"), as more particularly described in Schedule I attached hereto;
B. All permits, licenses, consents, registrations and other similar approvals applicable to the Real Property (collectively, the "Approvals"), which Approvals are more particularly described in Schedule 2 attached hereto;
C. All as-built plans and specifications for: (I) the Real Property; (2) any and all improvements used in connection with the operation or occupancy of the Real Property or located upon the Real Property (the "Improvements"); and (3) any and all personal property owned by Assignor located within or used in connection with the operation of the Real Property and Improvements (the "Personal Property") (collectively, the "Plans"); and D. All warranties of which Assignor is the beneficiary (the "Warranties") with respect to the Improvements or Personal Property.

This Assignment shall not supersede the Agreement and, in the event of conflict between this Assignment and the Agreement, the Agreement shall control.

This Assignment shall be binding upon and inure to the benefit of Assignor and Assignee and their respective heirs, executors, administrators, successors and assigns.

This Assignment shall take effect the last to occur of the following: (i) full execution by all parties and Lessor's consent, as shown by the last date entered below the parties' signatures and (ii) upon the consummation of the transaction between Assignee and Assignor IN WITNESS WHEREOF, Assignor has executed this Assignment as of the date first above written.

ASSIGNOR:

Exhibit "E"
55852.01006\430652] 1.4
60 Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D 55852.0 I 006\43065211.4
Trust B under the Burkhardt Family Trust
established December 6, 1988
By: ------------------
Name: PHILIP E. BURKHARDT
Title: Trustee
Date: --------------
Exhibit "E"
61 Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D 55852.01006\4306521 I .4
SCHEDULE 1
Note to Seller: List all equipment leases, service
and/or maintenance agreements and contracts
relating to the Real Property - if none known, delete
this schedule and bracketed phrase but leave
general assignment of unspecified contracts.

Leases should have a separate assignment, so do
not assign seller's interest in leases in this
document.

Exhibit "E"
62 Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D 55852.01006\4306521 l.4
SCHEDULE2
Note to Seller: List all permits, licenses, consents,
registrations and other similar approvals
applicable to the Real Property- ifnone known,
delete this schedule and bracketed phrase but leave
general assignment of unspecified contracts
Exhibit "E"
63 Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D

RECORDING REQUESTED BY

AND WHEN RECORDED MAIL TO
City of Laguna Beach
505 Forest Ave.

Laguna Beach, CA 92561
ATTN: City Clerk

EXEMPT FROM RECORDING FEES PURSUANT
TO GOVERNMENT CODE SECTION 27383
APNs: 632-101-10

EXHIBIT F

GRANT DEED

SPACE ABOVE THIS LINE FOR RECORDER'S USE
Grant Deed
The undersigned Grantor(s) declare(s): City of Laguna Beach is exempt from property taxes Documentary transfer tax is $0.

D Computed on full value of property conveyed, or
D Computed on full value less value of liens and encumbrances remaining at time of sale.

D Unincorporated area ~ City of Laguna Beach and
FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, PHILIP E. BURKHARDT, Trustee of Trust B under the Burkhardt Family Trust established December 6, 1988,
hereby GRANT(S) to
CITY OF LAGUNA BEACH, a California municipal corporation an undivided fifty percent (50%) interest in the following described real property in the City of Laguna Beach
County of Orange
State of California:

SEE ATTACHED EXHIBIT A
Dated: _______ , 20_
55852.01006\43065211.4
By: [Do not execute, Exhibit only]
Exhibit "F"
64 Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D

ACKNOWLEDGMENT
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

STATE OF CALIFORNIA
COUNTY OF ________ _
)
)
On ___ _, 20_ before me, _____________ __, Notary Public, personally appeared-----------------~ who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person( s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature: _________________ _ (seal)
Exhibit "F"
55852.01006\430652 I I .4
65 Docusign Envelope ID: 0BE25B51-B03A-4B1 D-848B-09EBCC6C600D

CERTIFICATE OF ACCEPTANCE
Pursuant to Section 27281 of the
California Government Code
This is to certify that the undivided fifty percent (50%) interest in real property conveyed by the Grant Deed dated ________ , 20_, from PHILIP E. BURKHARDT, Trustee of Trust B under the Burkhardt Family Trust established December 6, 1988, to the City of Laguna Beach, a municipal corporation, is hereby accepted by the undersigned officer on behalf of the City of Laguna Beach, pursuant to the authority conferred by Resolution No. ___ , adopted by the City Council of the City of Laguna Beach on _________ ., and the Grantee consents to recordation thereof by its duly authorized officer.

Dated: _______ , 20_ CITY OF LAGUNA BEACH,
a California municipal corporation
By-------------
Exhibit "F"
55852.01006\43065211.4
66 Docusign Envelope ID: 0BE25B51-B03A-4B1 D-848B-09EBCC6C600D

EXHIBIT G

LIST OF LEASES AND SUMMARY OF LEASE TERMS
. Current . Copy of Property Unit Use Tenant Listed SF
Rent (OM) Lease
2307 Apt/ 1+1 1,800 Charlotte NIA Yes
2309 Henderson
2307 1 Flex 835 Edith Otto N/A No
2307 2 ' Flex 1,365 Colas (Darrell) NIA Missing
Moore Page4
2307 3 Flex 1,200 Tom Lamb 700 Missing
Pages 5-7
2307 4 Flex 1,080 Clayton Dubin & 500 Yes Amanda Hunter Peter Blake
2307 5 Flex 1,350 Gallery I 725 Unsigned Stephanie
Bachier(o)
2307 6 Flex 1,650 Jan Mach N/A Yes
2307 7 Flex 1,385 Marlo Bartels N/A No
2307 8 Flex 1,300 Mike Ezzell No
2307 9 Flex 1,300 Casey Parlette NIA Missing
Pages 5-7
2307 10 Flex 850 Issac Anderson & N/A No Jason Hanek
Exhibit "G"
55852.0 I 006\43065211.4
67 Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D

EXHIBIT H

ASSIGNMENT OF LEASES

ASSIGNMENT AND ASSUMPTION OF LEASES
This ASSIGNMENT OF LEASES (the "Assignment"), dated _____ , (the "Assignment Date"), is by and between ("Assignor"),
_____________ ("Assignee").

RECITALS
A. Pursuant to those leases listed in Exhibit 1 hereto, as such may have been amended (the "Leases"), the improved real property located at _______________ _ (the "Property") is occupied by the tenants as more particularly described in the Leases.

B. Concurrently herewith, Assignee has acquired the Property from Assignor.

C. In connection with the acquisition by Assignee of title in and to the Property, Assignor desires to assign its interest in the Leases to Assignee, and Assignee desires to accept assignment thereof on the terms and conditions set forth herein.

AGREEMENTS
NOW, THEREFORE, in consideration of the foregoing recitals which are specifically incorporated into the body of this Assignment, and the promises and covenants set forth herein, and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows:

1. Assignment. Effective as of the Assignment Date, Assignor hereby assigns to Assignee all of its right, title and interest in and to the Leases and any guaranties and warranties related thereto. Assignor hereby agrees to indemnify Assignee against and hold Assignee harmless from any and all cost, liability, loss, damage or expense including without limitation reasonable attorneys' and experts' fees and costs, arising out of facts or circumstances occurring at the Property prior to the Assignment Date and relating to claims of personal injury and/or property damage.

2. Assumption. Assignee hereby accepts the assignment set forth in Section 1 above, and hereby assumes all of Assignor's obligations under the Leases arising or accruing on and after the Assignment Date. Assignee hereby agrees to indemnify Assignor against and hold Assignor harmless from any and all cost, liability, loss, damage or expense, including without limitation reasonable attorneys' and experts' fees and costs, arising out of facts or circumstances occurring at the Property on and after the Assignment Date and relating to claims of personal injury and/or property damage occurring during Assignee's ownership of the Property.

3. Effective Date. This Assignment shall be conditioned and effective upon the conveyance to Assignee of record fee title to the Property (the "Effective Date").

Exhibit "G"
55852 01006\430652114
68 Docusign Envelope ID: 0BE25B51-B03A-4B1O-B4BB-09EBCC6C600O

4. Binding on Successors. This Assignment shall be binding on and shall inure to the benefit of the parties hereto, their heirs, executors, administrators, successors in interest and assigns.

5. Counterparts. This Assignment may be executed in two (2) or more counterparts, each of which shall be deemed an original (including copies sent to a party by electronic transmission as against the party signing such counterpart), but which together shall constitute one and the same instrument.

IN WITNESS WHEREOF, the parties hereto have signed this Assignment as set forth below.
55852.01006\43065211.4

ASSIGNOR
Trust B under the Burkhardt Family Trust established
December 6, 1988
By: ------------------
Name: PHILIP E. BURKHARDT
Title: Trustee

ASSIGNEE
By: ___ ~~~=~~-
Name: --------- Its:

Exhibit "H"
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EXHIBIT 1 TO ASSIGNMENT OF LEASES

LEASES TO BE ASSIGNED
Exhibit "H"
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PURCHASE AND SALE AGREEMENT

AND JOINT ESCROW INSTRUCTIONS
This Purchase and Sale Agreement and Joint Escrow Instructions (this "Agreement") is made as of January W, 2025 (the "Effective Date"), between PHILIP E. BURKHARDT, Trustee of Trust C under the Burkhardt Family Trust established December 6, 1988 ("Seller"), and CITY OF LAGUNA BEACH, a California municipal corporation ("Buyer").

ARTICLE 1. AGREEMENT OF SALE.

Subject to and on the terms and conditions of this Agreement, Seller shall sell to Buyer and Buyer shall purchase from Seller an undivided fifty percent (50%) interest in all of the following:

1. 1 Land. The real property consisting of approximately 101,495 square feet (2.33 acres) located at 2307 Laguna Canyon Road, City of Laguna Beach, Orange, California (APN:
632-101-10), which is more particularly described in Exhibit A, together with (a) all privileges, rights, easements and appurtenances belonging to the real property, including without limitation all minerals, oil, gas and other hydrocarbon substances on and under the real property, (b) all development rights, air rights, water, water rights and water stock relating to the real property, and ( c) all right, title and interest of Seller in and to any streets, alleys, passages, other easements and other rights-of-way or appurtenances included in, adjacent to or used in connection with such real property, before or after the vacation thereof ( collectively, the "Land");

1.4 Service Contracts. Those Service Contracts (defined in Section 5.7) which Buyer expressly agrees to assume;

1.5 Leases. All of the landlord's interest in and to the Leases (the "Leases") between Seller, as Landlord, and the tenants ("Tenants") in occupancy under the Leases referenced in Section 5.7, below and set forth on Exhibit G; and
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1.6 Other Assets. To the extent owned by Seller, all tangible and intangible assets of any nature relating to the Property or the Personal Property, including without limitation (a) all warranties upon the Improvements or Personal Property, to the full extent such warranties are assignable, (b) copies of all plans, specifications, engineering drawings and prints relating to the construction of the Improvements, ( c) all license agreements, copyrights, logos, designs, trademarks, trade names, service marks and all goodwill associated with the Property, (d) all other intellectual or intangible property used by Seller in connection with the Property; and (e) all claims and causes of action arising out of or in connection with the Property.

ARTICLE 2. PURCHASE PRICE.

2.1 Amount; Contingencies. The purchase price (the "Purchase Price") for an undivided fifty percent (50%) interest in the Property shall be $1,850,000.00. Seller acknowledges and agrees that Buyer is not requesting a financing or appraisal contingency in contemplation of the Purchase Price, however, Buyer may, in its sole discretion, engage with an appraiser to evaluate the value of the Property during the Due Diligence Period (as defined in Section 3.1.1). The parties further acknowledge and agree that the Purchase Price is predicated on the assumption that no adverse environmental conditions exist on the Property. Should Buyer determine, in its reasonable discretion, that adverse environmental conditions are present on the Property during its Due Diligence Investigation (as defined below in Section 3.1.2), the parties shall, prior to expiration of the Due Diligence Period, negotiate in good faith, the manner in which such conditions shall be remedied and the Due Diligence Period shall be tolled for the duration of such negotiations.

2.2 Deposit/Purchase Price.

2.2.3 The Deposit and Purchase Price shall be made by wire transfer of federal funds, cashier's check or in another immediately available form. Notwithstanding anything herein to the contrary, One Hundred Dollars ($100.00) of the Initial Deposit (the "Independent Consideration") shall not be refundable to Buyer, but shall represent consideration for this Agreement and shall be paid to Seller. The Independent Consideration shall be paid to Seller 2 55852.0 I 006\43065213.4
72 Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D within 3 days of the Effective Date. The Independent Consideration shall serve as consideration for the granting of the time periods herein contained for Buyer to exercise Buyer's right to satisfy and approve all of Buyer's conditions herein contained. If the Deposit is refunded to Buyer for any reason pursuant to this Agreement, the Independent Consideration shall be subtracted from the Deposit pursuant to this Section.

ARTICLE 3. DUE DILIGENCE.

3.1 Due Diligence Period; Inspection and Access.

3.1.1 Due Diligence Period. Due Diligence Period. The "Due Diligence Period" means the period beginning on the Effective Date and ending at 5:00 p.m. on February 21, 2025, provided, however, in the event the Preliminary Documents and the Lease Documentation (defined below) are not delivered on or before the Seller Document Deadline (defined below), the Due Diligence Period and the Closing Date shall be automatically extended one (1) day for each day beyond the Seller Document Deadline that the Preliminary Documents and the Lease Documentation are not delivered to Buyer by Seller.

3.1.2 Access to Information and the Property. Buyer shall conduct its investigation of the Property during the Due Diligence Period at no cost to Seller. This investigation ("Due Diligence Investigation") may include, at Buyer's option: a physical inspection of the Land and all Improvements thereon, including soil, geological and other tests, engineering evaluations of the mechanical, electrical, HV AC and other systems in the Improvements and review of the plans; review of all governmental matters affecting the Property, including zoning, environmental and building permit and occupancy matters; review and verification of all financial and other information previously provided by Seller relating to the operation of the Property; review of the condition of title to the Property, including the building, structural system and roof inspection; and review of such other matters pertaining to an investment in the Property as Buyer deems advisable. In addition to the Preliminary Documents delivered to Buyer pursuant to Section 3.2, Buyer and its representatives shall have the right of access during reasonable business hours to all files, books and records maintained by Seller or its agents (including, without limitation, all of the Additional Documents to be made available to Buyer at the Property pursuant to Section 3.3), wherever located, relating to the Property, including the right to copy the same. Buyer and its representatives shall also have the right of access to the Property during reasonable business hours to conduct its investigation of the physical condition of the Property. Seller agrees that the rights granted to Buyer herein and the results of its Due Diligence Investigation shall not relieve Seller of any obligations Seller may have under any other provisions of this Agreement, or under other documents entered into concurrently herewith, or implied by law, nor shall they constitute a waiver by Buyer of the right to enforce any of the same. Seller shall cooperate with Buyer in its due diligence activities and provide access to the Property, its records, or provide information so long as it is within Seller's control. 3 55852.01006\43065213.4
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3.2.6 Licenses, Etc. Copies of any licenses, permits or certificates required by governmental authorities in connection with construction or occupancy of the Improvements, including, without limitation, building permits, certificates of completion, certificates of occupancy and environmental permits and licenses;
3 .2. 7 Lease Documentation. Fully executed copies of all of the Leases set forth on Exhibit G, including, without limitation, new Leases or Lease amendments for such leases for which an original is either lost, incomplete, unsigned, or otherwise unavailable, along with duly executed estoppel certificates on a form reasonably acceptable to Buyer disclosing no defaults or 4 55852.01006\43065213.4
74 Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D alleged defaults by either Seller or the Tenant under such Lease or any Tenant bankruptcy, or any dispute between Seller and a Tenant (the "Preliminary Estoppels"), the Leases and the Preliminary Estoppels shall be referred to herein as the "Lease Documentation");

If no such documents exist, Seller shall furnish its certification to that effect;

3.3.3 Insurance Policies. Copies of certificates evidencing the insurance carried by Seller of the Property;
3 .3 .4 Other Documents. All data, correspondence, documents, agreements, waivers, notices, applications and other records with respect to the Property relating to transactions with taxing authorities, governmental agencies, utilities, vendors and others with whom Buyer may be dealing from and after the Closing Date; and

3.3.5 Requested Information. Such other documents and information concerning the Property as Buyer may reasonably request.

3.4 Approval/Disapproval of Due Diligence Investigations. Buyer shall approve or disapprove the results of Buyer's Due Diligence Investigation, in the exercise of Buyer's sole discretion, by written notice delivered to Seller no later than the expiration of the Due Diligence Period. Buyer's disapproval shall terminate this Agreement unless, at the time Buyer gives notice of its disapproval, Buyer also notifies Seller of Buyer's desire to enter into negotiations with Seller for the purpose of reaching an accommodation concerning the disapproval. If Buyer so notifies Seller and the parties have not reached a written agreement satisfactory to both of them regarding 5 55852.010061430652 l 3.4
75 Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D the disapproval within 10 days after the date of the disapproval notice, Buyer, at its option, may either (a) elect to terminate this Agreement by so notifying Seller and recover the Deposit, or (b) elect to proceed with the transactions contemplated by this Agreement notwithstanding its earlier disapproval. If Buyer fails to deliver to Seller notice of its approval or disapproval of the results of its Due Diligence Investigation, Buyer shall be deemed to have disapproved such results. If Buyer elects to terminate the Agreement, Buyer shall return to Seller all of the Preliminary Documents and Additional Documents previously delivered by Seller to Buyer within 5 business days of such termination, and Escrow shall immediately refund Buyer the Deposit, and Buyer shall have no further obligations to Seller.

3.5 Title Review.

3.5.1 Monetary Liens. At its expense, Seller shall remove all liens on the Property at or prior to the Closing (collectively, "Monetary Liens"): (i) all delinquent taxes, bonds and assessments and interest and penalties thereon (it being agreed that Seller shall not be required to remove any non-delinquent taxes and assessments imposed by any governmental agency that are paid with the property taxes for the Property); and (ii) all other monetary liens, including without limitation all those shown on the Preliminary Title Report (including judgment and mechanics' liens, whether or not liquidated, and mortgages and deeds of trust, with Seller being fully responsible for any fees or penalties incurred in connection therewith).

3.5.2 Approval/Disapproval of Title Review. Buyer shall approve or disapprove of the Preliminary Title Report, the Survey and any exceptions to title shown thereon (other than the Monetary Liens) in the exercise of Buyer's sole discretion, by the expiration of the Due Diligence Period. If Buyer disapproves, Buyer may either (a) terminate this Agreement by giving Seller written notice of termination or (b) give Seller a written notice ("Disapproval Notice") identifying the disapproved title matters ("Disapproved Title Matters"). With respect to any Disapproved Title Matters, other than the Monetary Liens, Seller shall notify Buyer in writing within 5 days after Seller's receipt of the Disapproval Notice whether Seller will cause the Disapproved Title Matters to be removed or cured at or prior to Closing. If Seller elects not to remove or cure all Disapproved Title Matters, Buyer may, at its option: (i) subject to satisfaction of the other conditions to Closing, close the purchase of the Property and take title subject to the Disapproved Title Matters which Seller elects not to remove or cure; or (ii) terminate this Agreement in accordance with Section 9 .6.1.
3 .5 .3 Buyer's Options. If any Disapproved Title Matters (including the Monetary Liens) have not been removed at least 5 days prior to Closing or provision for their removal at the Closing has not been made to Buyer's satisfaction, Buyer may, at its option: (i) close the purchase of the Property and take title subject to the Disapproved Title Matters which have not been removed; (ii) close the purchase of the Property and cure or remove the Disapproved Title Matters which have not been removed. Buyer may credit the costs of such cure or removal against the Purchase Price by reducing the amount of cash payable by Buyer at the Closing, but only to the extent such costs are expended to remove (A) Monetary Liens referred to in Section 3.5.1 or (B) Disapproved Title Matters which Seller agreed to remove; or (iii) terminate this Agreement in accordance with Section 9 .6.1.
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ARTICLE 4. CONDITIONS PRECEDENT.

4.1.1 Due Diligence. Buyer having approved of the results of its Due Diligence Investigation pursuant to Section 3.4;

4.1.2 Title Review. Buyer having approved of the results of its review of title pursuant to Section 3.5.

4.1.3 Title Policy. Seller having caused the Title Company to deliver to Buyer (a) a CLTA Owner's policy of title insurance, provided that Buyer may require an ALTA Owner's Policy if Buyer pays the incremental premium for ALT A coverage ("Title Policy") ( or at Buyer's election a binder therefor) for the Property, or (b) the Title Company's irrevocable commitment to issue such policy of title insurance, (including such coinsurance, reinsurance and endorsements as Buyer shall require), with liability equal to the Purchase Price showing fee title to the Property vested in Buyer and subject only to: (i) the matters and exceptions which were approved by Buyer pursuant to Section 3.5; and (ii) the standard printed exceptions in the form of title policy called for ( collectively, "Conditions of Title").

4.1.5 Representations and Warranties. The representations and warranties of Seller set forth in Article 5 being true and accurate on the Closing Date, as if made on such date.

4.1.8 Condition of Property. The non-occurrence of any material adverse change tci the physical status of the Property between the end of the Due Diligence Period and Closing.

4.1.9 Possession of FF&E's. Buyer obtaining legal possession of all furniture, fixtures, and equipment integral to the operation of the Property, and otherwise owned by Seller. 7 55852.0 I 006\43065213.4
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4.1.11 Closing Estoppel Certificates. Seller shall have delivered or caused to be delivered the Closing Estoppel Certificates in accordance with Section 9.3.5.

4.2.1 Covenants. Buyer performing and complying in all material respects with all of the terms of this Agreement to be performed and complied with by Buyer prior to or at the Closing.

4.2.2 Representations and Warranties. The representations of Buyer set forth in Article 6 being true and accurate on the Closing Date, as if made on such date.

ARTICLE 5. SELLER'S REPRESENTATIONS AND WARRANTIES.

5.3 Documents. All of the Preliminary Documents and the Additional Documents which have been delivered or made available to Buyer pursuant to Article 3, and all other documents delivered to Buyer by or on behalf of Seller (a) are true, correct and complete copies of what they purport to be, (b) represent truly the factual matters stated therein, ( c) are in full force and effect, (d) have not been modified, except as set forth therein and (e) do not omit any information required to make the submission thereof accurate and complete in all material respects. 8 55852.01006\43065213.4
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5.6 Licenses. Seller has all required licenses, permits (including, without limitation, all building permits and occupancy permits), easements and rights-of-way which are required in order to continue the present use of the Property. Seller has no knowledge of any law or regulation of any governmental authority having jurisdiction which might require the Property to be improved beyond its present state or which might restrict the use and enjoyment of the Property in the manner it is presently being used and enjoyed.

5.7 Contracts/Leases/Occupancy Rights.

5.8 Litigation. There are no actions, suits, proceedings, judgments, orders, decrees or governmental investigations pending or threatened against the Property or Seller which could affect the Property or the purchase, use or enjoyment thereof by Buyer. 9 55852.01006\43065213.4
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5.10.1 Definitions. For purposes of this Agreement:
(a) "Environmental Law(s)" means the Comprehensive
Environmental Response, Compensation, and Liability Act of 1980, 42 U .S.C. Sections 9601, et ~-, the Resource Conservation and Recovery Act of 1976, 42 U.S.C. Sections 6901 et seq., the Toxic Substances Control Act, 15 U.S.C. Sections 2601 et. ~-, the Hazardous Materials Transportation Act, 49 U.S.C. 1801 et~., the Clean Water Act, 33 U.S.C. Sections 1251 et seq., The Safe Drinking Water and Toxic Enforcement Act of 1986 (Cal. H&S Code Sections 25249.5- 25249.13), the Carpenter-Preseley-Tanner Hazardous Substance Account Act (Cal. H&S Code Sections 25300 et seq.), and the California Water Code Sections 1300, et seq., as said laws have been supplemented or amended to date, the regulations promulgated pursuant to said laws and any other federal, state or local law, statute, rule, regulation or ordinance which regulates or proscribes the use, storage, disposal, presence, cleanup, transportation or Release or threatened Release into the environment of Hazardous Material.
(b) "Hazardous Material" means any substance which is (i) designated, defined, classified or regulated as a hazardous substance, hazardous material, hazardous waste, pollutant or contaminant under any Environmental Law, as currently in effect or as hereafter amended or enacted, (ii) a petroleum hydrocarbon, including crude oil or any fraction thereof and all petroleum products, (iii) PCBs, (iv) lead, (v) asbestos, (vi) flammable explosives, (vii) infectious materials or (viii) radioactive materials. (c) "Release" means any spilling, leaking, pumping, pouring, emitting, discharging, injecting, escaping, leaching, dumping or disposing into the environment of any Hazardous Material (including the abandonment or discarding of barrels, containers, and other receptacles containing any Hazardous Material).

5.10.2 Representations.
(a) The Property and all existing uses and conditions of the Property are in compliance with all Environmental Laws, and Seller has not received any written notice of violation issued pursuant to any Environmental Law with respect to the Property or any use or condition thereof.
(b) Neither Seller nor any other present or former owner of the Property has used, handled, stored, transported, released or disposed of any Hazardous Material on, under or from the Property in violation of any Environmental Law. ( c) There is no Release of any Hazardous Material existing on, beneath or from or in the surface or ground water associated with the Property. 55852.01006\43065213.4
80 Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D (d) All required permits, licenses and other authorizations required by or issued pursuant to any Environmental Law for the ownership or operation of the Property by Seller have been obtained and are presently maintained in full force and effect. (e) There exists no writ, injunction, decree, order or judgment outstanding, nor any lawsuit, claim, proceeding, citation, directive, summons or investigation pending or, to Seller's knowledge, threatened pursuant to any Environmental Law relating to (i) the ownership, occupancy or use of any portion of the Property by Seller or occupant or user of any portion of the Property or any former owner of any portion of the Property, (ii) any alleged violation of any Environmental Law by Seller or occupant or user of any portion of the Property or any former owner of any portion of the Property or (iii) the suspected presence, Release or threatened Release of any Hazardous Material on, under, in or from any portion of the Property. (f) There are no above-ground or underground tanks located on the Property used or formerly used for the purpose of storing any Hazardous Material. (g) No asbestos abatement or remediation work has been performed on the Property.
(h) There is no PCB-containing equipment or PCB-containing material located on or in the Property.

5.12 Seller's Authority. Seller has the requisite power and authority to own and operate the Property and conduct its business where the same is now owned or operated. The execution, delivery and performance of this Agreement by Seller have been duly and validly authorized by all necessary action and proceedings, and no further action or authorization is necessary on the part of Seller ( or its board of directors or shareholders) in order to consummate the transactions contemplated herein. This Agreement and the other documents executed by Seller in connection herewith are legal, valid and binding obligations of Seller, enforceable in accordance with their respective terms. Neither the execution and delivery of this Agreement by Seller, nor performance of any of its obligations hereunder, nor consummation of the transactions contemplated hereby, shall conflict with, result in a breach of, or constitute a default under, the terms and conditions of the organizational documents pursuant to which Seller was organized, or any indenture, mortgage, deed of trust, agreement, undertaking, instrument or document to which Seller or any affiliate thereof is a party or is bound, or any order or regulation of any court, regulatory body, administrative agency or governmental body having jurisdiction over Seller. 11 55852.01006\43065213.4
81 Docusign Envelope ID: 0BE25B51-B03A-4B1 D-848B-09EBCC6C600D 5 .13 Parking. Seller has received no written notice from any governmental agency that the parking spaces on the Property are in violation of law.

5.14 Zoning. Seller has received no written notice from any governmental agency that the Property is not in compliance with zoning requirements and laws.

5.15 Foreign Person. Seller is not a "foreign person" within the meaning of Section 1445(£) of the Internal Revenue Code.

ARTICLE 6. BUYER'S REPRESENTATIONS AND WARRANTIES.

Buyer makes the following representation and warranties to Seller with the understanding that each such representation and warranty is material and is being relied upon by Seller:

ARTICLE 7. SURVIVAL OF REPRESENTATIONS AND WARRANTIES.
7 .1 Survival of Warranties. Buyer and Seller agree that each representation and warranty, covenant by the respective parties contained herein or made in writing pursuant to this 12 55852.01006\430652 I 3.4
82 Docusign Envelope ID: 0BE25B51-B03A-4B1 D-848B-09EBCC6C600D Agreement are intended to and shall be deemed made as of the date of this Agreement or such writing and again at the Closing, shall be deemed to be material, and unless expressly provided to the contrary shall survive the execution and delivery of this Agreement, the Deed and the Closing.

ARTICLE 8. SELLER'S PRECLOSING COVENANTS.

8.2 Insurance. Seller shall maintain or cause to be maintained in full force and effect its present insurance policies for the Property.

8.4 No Transfers. Seller shall not sell, encumber or otherwise transfer any interest in all or any portion of the Property, or agree to do so.

8.5 Termination of Contracts. Seller at its sole cost and expense shall terminate all of the Service Contracts described in Section 5. 7 at or before the Closing Date, except for those contracts which Buyer expressly agrees to assume and which are actually assumed by Buyer pursuant to Section 9 .3 .3.

8.6 Maintenance. At its sole cost and expense, Seller shall operate and maintain the Property such that on the Closing Date the Property shall be in at least as good a condition and repair as on the Effective Date, reasonable wear and tear excepted. Without limiting the generality of the foregoing, Seller shall, at a minimum, spend such amounts for repair and maintenance as are consistent with its prior practice. Seller shall promptly advise Buyer of any significant repair or improvement required to keep the Property in such condition. Seller shall not make any material alterations to the Property, or remove any of the Personal Property therefrom, without Buyer's prior consent, unless such Personal Property so removed is simultaneously replaced with new Personal Property of similar quality and utility.
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ARTICLE 9. CLOSING.
9 .1 Time. Provided all conditions set forth in Article 4 have been either satisfied or waived, and to the extent such date has not been extended pursuant to Section 3 .1.1, above, the parties shall close this transaction (the "Closing"), on February 28, 2025 (the "Closing Date"), as such date may be extended by the provisions of Article 10. Notwithstanding the foregoing, Buyer shall have the right to extend the Closing Date to March 28, 2025 by providing written notice on or before the original Closing Date ("Closing Extension Notice") and depositing into Escrow the Extension Deposit in accordance with Section 2.2.4, above.

9.3 Seller's Deposit of Documents and Funds Into Escrow. Seller shall deposit into escrow on or before Closing (unless otherwise set forth herein) the following documents:

9.3.1 A duly executed and acknowledged grant deed, in the form acceptable to Buyer, conveying the Property to Buyer ("Grant Deed") in the form attached as Exhibit F;

9.3.2 A duly executed bill of sale, in the form of Exhibit D, conveying the Personal Property to Buyer free and clear of liens, encumbrances and restrictions ("Bill of Sale");

9.3.4 A duly executed assignment, in the form of Exhibit H, assigning to Buyer all of Seller's interest in and to the Leases (the "Assignment of Leases"); 14 55852.0 I 006\43065213.4
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9.3.6 No more than 10 days but no less than 5 days before the expiration of the Due Diligence Period, the originals ( or copies if originals are unavailable) of the Service Contracts Buyer has elected to assume, if any, and estoppel certificates from the other parties to such Service Contracts in form and substance satisfactory to Buyer;
9 .3. 7 All costs of Closing, including, but not limited to, the CL TA increment of the premium for the Title Policy, recording fees (if any), transfer taxes (if any) and fees, one-half of the escrow fees, sales tax and any other costs of Closing customarily paid by sellers of real property, plus or minus prorations as provided in Section 9.8; provided that, subject to Section 9.6, Buyer and Seller shall bear their own attorneys' fees and costs in connection with the negotiation and preparation of this Agreement and the transactions completed by this Agreement;

9.3.8 Seller's Non-foreign Certification;

9.3.9 All records and files relating to the management or operation of the Property, including, without limitation, property tax bills, insurance, and property taxes; and

9.3.11 Form 593;

9.3.12 Notice letter to tenants regarding new owner and addresses for payment of rent payment ("Tenant Notice Letter").

9.5.2 A duly executed counterpart of the Assignment of Leases; and 15 55852.0 I 006\43065213.4
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9.6 Default, Termination and Remedies.

9.6. l Buyer's Termination. This Agreement shall automatically terminate without further notice or action by Buyer upon the occurrence of any of the following events, provided that Buyer is not then in material breach of this Agreement: (a) any condition to Closing contained in Section 4.1 has not been satisfied or waived by Buyer by the Closing Date; or (b) Buyer having exercised its right to terminate this Agreement pursuant to Section 3.4 (disapproval of Due Diligence Investigation), Section 3.5 (disapproval of title) or Article 10 (damage or condemnation). In such event, the parties shall have no further obligation to each other except for those obligations that specifically survive the termination of this Agreement. If this Agreement terminates as a result of Seller's material breach of this Agreement, Buyer shall have all remedies it may have hereunder or at law as a result of such occurrence, including the remedy of specific performance.

9.6.3 Release from Escrow. Upon termination of this Agreement pursuant to Section 9.6.1 or 9.6.2, Escrow Holder shall promptly return to Buyer and Seller, respectively, all documents and monies deposited by them into escrow without prejudice to their rights and remedies hereunder.

OF ESCROW BUYER FAILS TO COMPLY WITH OR PERFORM BUYER'S OBLIGATIONS UNDER THIS AGREEMENT AND (EXCEPT AS OTHERWISE PROVIDED IN SECTION 9.6)

DOES NOT CURE SUCH FAILURE WITHIN TEN BUSINESS DAYS AFTER SELLER'S WRITTEN NOTICE OF SUCH FAILURE, THEN SELLER MAY THEREAFTER: (I) TERMINATE THIS AGREEMENT; (II) RECEIVE AND RETAIN THE DEPOSIT AS

AGREEMENT BY REASON OF BUYER'S DEFAULT, BUYER AND SELLER SHALL BE

RELIEVED OF ANY FURTHER OBLIGATION TO EACH OTHER WITH RESPECT TO THIS

AGREEMENT AND THE PROPERTY EXCEPT FOR ANY OBLIGATIONS WHICH 16 55852.0 I 006\43065213.4
86 Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D EXPRESSLY SURVIVE. IT IS EXPRESSLY UNDERSTOOD AND AGREED BY BUYER AND SELLER: THAT SELLER WILL INCUR SUBSTANTIAL DAMAGES AS A RESULT

OF ANY FAILURE BY BUYER TO COMPLY WITH OR PERFORM BUYER'S OBLIGATIONS UNDER THIS AGREEMENT; THAT IT IS EXTREMELY DIFFICULT AND

IMPRACTICAL TO CALCULATE AND ASCERTAIN AS OF THE EFFECTIVE DATE OF

THIS AGREEMENT THE ACTUAL DAMAGES WHICH WOULD BE SUFFERED IN SUCH EVENT BY SELLER; AND THAT THE DEPOSIT IS A REASONABLE ESTIMATE OF THE

EXTENT TO WHICH SELLER MAY BE DAMAGED BY BUYER'S DEFAULT IN LIGHT

OF THE DIFFICULTY THE PARTIES WOULD HAVE IN DETERMINING SELLER'S ACTUAL DAMAGES AS A RESULT OF SUCH DEFAULT BY BUYER.

SELLE~~~i, BUYER'S INITIALS
(c) Waiver of Specific Performance. SELLER HEREBY WAIVES

THE RIGHT TO MAINTAIN AN ACTION FOR SPECIFIC PERFORMANCE OF BUYER'S

OBLIGATION TO PURCHASE THE PROPERTY AND SELLER AGREES THAT SELLER

CAN BE ADEQUATELY COMPENSATED IN MONEY DAMAGES IF BUYER FAILS TO PURCHASE THE PROPERTY IN BREACH OF THIS AGREEMENT. SELLER

ACKNOWLEDGES THAT THE PROVISIONS OF THIS SECTION ARE A MATERIAL PART

OF THE CONS ID ERA TION BEING GIVEN TO BUYER FOR ENTERING INTO THIS

AGREEMENT AND THAT BUYER WOULD BE UNWILLING TO ENTER INTO THIS AGWN6 THE ABSENCE OF THE PROVISIONS OF THIS SECTION.

SELLER'S INITIALS BUYER'S INITIALS

9.7.1 Record the Grant Deed;

9.7.2 Cause the Title Company to issue the Title Policy to Buyer;

9.7.4 Deliver the Purchase Price (as adjusted pursuant to Section 9.8) to Seller;

9.7.5 Deliver or mail Tenant Notice Letter to tenants for each Lease.

Escrow Holder shall prepare and sign closing statements showing all receipts and disbursements and deliver copies to Buyer and Seller and, if applicable, shall file with the Internal 17 55852.01006\430652 I 3.4
87 EXPRESSLY SURVIVE. IT IS EXPRESSLY UNDERSTOOD AND AGREED BY BUYER AND SELLER: THAT SELLER WILL INCUR SUBSTANTIAL DAMAGES AS A RESULT

OF ANY FAILURE BY BUYER TO COMPLY WITH OR PERFORM BUYER'S OBLIGATIONS UNDER THIS AGREEMENT; THAT IT TS EXTREMELY DIFFICULT AND

IMPRACTICAL TO CALCULATE AND ASCERTAIN AS OF THE EFFECTIVE DATE OF

THIS AGREEMENT THE ACTUAL DAMAGES WHICH WOULD BE SUFFERED IN SUCH EVENT BY SELLER; AND THAT THE DEPOSIT IS A REASONABLE ESTIMATE OF THE

EXTENT TO WHICH SELLER MAY BE DAMAGED BY BUYER'S DEFAULT IN LIGHT OF THE DIFFICULTY .THE PARTIES WOULD HAVE IN DETERMINING SELLER'S ACTUAL DAMAGES AS A RESULT OF SUCH DEFAULT BY BUYER.

SELLER'S INITIALS BUYER'S INITIALS
(c) Waiver of Specific Performance. SELLER HEREBY WAIVES

THE RIGHT TO MAINTAIN AN ACTION FOR SPECIFIC PERFORMANCE OF BUYER'S

OBLIGATION TO PURCHASE THE PROPERTY AND SELLER AGREES THAT SELLER

CAN BE ADEQUATELY COMPENSATED IN MONEY DAMAGES IF BUYER FAILS TO PURCHASE THE PROPERTY IN BREACH OF THIS AGREEMENT. SELLER

ACKNOWLEDGES THATTHEPROVISIONS OF THIS SECTION AREA MATERIAL PART

OF THE CONSIDERATION BEING GIVEN TO BUYER FOR ENTERING INTO THIS

AGREEMENT AND IHA T BUYER WOULD BE UNWILLING TO ENTER INTO THIS AGREEMENT IN THE ABSENCE OF THE PROVISIONS OF THIS SECTION.

SELLER'S INITIALS BUYER'S INITIALS

9.7.1 Record the Gl'ant Deed;

9.7.2 Cause the Title Company to issue the Title Policy to Buyer;

9.7.4 Deliver the Purchase Price (as adjusted pursuant to Section 9.8) to Seller;

9.7.5 Deliver or mail Tenant Notice Letter to tenants for each Lease.

Escrow Holder shall prepare and sign closing statements showing all receipts and disbursements and deliver copies to Buyer and Seller and, if applicable, shall file with the Internal 17 55852.01006\43065213.4
88 Docusign Envelope ID: 0BE25B51-B03A-4B1 D-848B-09EBCC6C600D Revenue Service (with copies to Buyer and Seller) the reporting statement required under Section 6045(e) of the Internal Revenue Code.

SELLER INITIALS

Upon recordation of the Grant Deed, Buyer will request cancellation of the real property taxes for the Property pursuant to California Revenue and Taxation Code Section 4986. If current taxes have not yet been paid as of the Closing Date, then at Closing Seller shall pay through Escrow or out of Seller's proceeds, the full amount of the installment applicable for the period in which Closing occurs. Seller shall be entitled to a refund of any excess payment made to the taxing authority on account of the Property, including any taxes paid by Seller and applicable to any period from and after the Closing Date. The taxing authority will notify Seller of any refund due Seller resulting from the subject acquisition after a review and any subsequent proration of the property tax assessment by the county assessor. Seller retains the right, following close of escrow, to apply to the appropriate governmental authority/ies for refund ofreal property taxes pursuant_to Revenue and Taxation Code Section 5096.7 (or such other applicable law), and Buyer shall reasonably cooperate with Seller's efforts to obtain said refund. 18 55852.0 I 006\43065213.4
89 Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D

9.9 Possession. Seller shall deliver exclusive right of possession of the Property to Buyer on the Closing Date, subject only to the Conditions of Title.

ARTICLE 10. DAMAGE, DESTRUCTION AND CONDEMNATION.

10. ARTICLE 11. GENERAL.

11.1 Notices. All notices, demands, approvals, and other communications provided for in this Agreement shall be in writing and shall be effective (a) when personally delivered to the recipient at the recipient's address set forth below; (b) five business days after deposit in a sealed envelope in the United States mail, postage prepaid, by registered or certified mail, return receipt requested, addressed to the recipient as set forth below; or (c) one business day after deposit with a recognized overnight courier or delivery service, addressed to the recipient as set forth below, whichever is earlier. If the date on which any notice to be given hereunder falls on a Saturday, Sunday or legal holiday, then such date shall automatically be extended to the next business day immediately following such Saturday, Sunday or legal holiday. Email notices may be used for 19 55852.01006\43065213.4
90 Docusign Envelope ID: 0BE25B51-B03A-4B10-848B-09EBCC6C600O convenience only, unless otherwise agreed by the parties in writing, and shall be deemed delivered one (1) business day after delivery if sent after 5 pm, or received the same day if sent on a business day between 8 am and 5 pm, and a duplicate shall be sent via USPS on the same day as the email.

The addresses for notice are:

SELLER:

With a copy to:

BUYER:

With a copy to:

PHILIP E. BURKHARDT, Trustee
7042 Palomino Drive
Sanger, CA, 92657
Phone: (704) 245-2690
Email: [email protected]
Casey Estate & Business Planning,
a Professional Law Corporation.

Attn Wayne J. Casey
610 Newport Center Drive, Suite 840
Newport Beach, CA 92660
Phone: (949) 640-5200
Email: [email protected]

CITY OF LAGUNA BEACH
Attn: Jeremy Frimond
505 Forest Ave.

Laguna Beach, CA 92561
Emai 1 :[email protected]
Best Best & Krieger
Attn: Megan Garibaldi
18101 Von Karman Ave., Suite 1000
Irvine, CA 92612
Phone: (949) 263-6592
Email: [email protected]
Either party may change its address by written notice to the other given in the manner set forth above.

11.3 Joint and Several Liability of Seller. The obligations, representations, warranties, and covenants of Seller under this Agreement shall be the joint and several obligations of each individual or entity comprising Seller. Each such individual or entity shall be fully responsible for 20 55852.0 I 006143065213.4
91 Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D the full performance of all obligations under this Agreement, regardless of the performance or default of any other individual or entity comprising Seller. Buyer may, at its sole discretion, seek recourse, enforcement, or remedy against any one or more of such individuals or entities without seeking recourse against the others, and no such action shall release any other individual or entity comprising Seller from their obligations under this Agreement.

11.8 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California applicable to contracts made and to be performed in California.

I 1.9 Confidentiality and Publicity. Buyer is a public entity and as such, this Agreement, upon its presentation for approval at Buyer's City council at a duly called and agendized public meeting, shall be subject to the Pub! ic Records Act and the Freedom of Information Act. No press release or other public disclosure may be made by Seller or any of its agents regarding Buyer's intent for this Property this transaction without the prior consent of Buyer. 21 55852.01006\43065213.4
92 Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D

11.10 Time. Time is of the essence in the performance of the parties' respective obligations under this Agreement.

11.11 Attorneys' Fees. In the event of any legal or equitable proceeding to enforce any of the terms or conditions of this Agreement, or any alleged disputes, breaches, defaults or misrepresentations in connection with any provision of this Agreement, the prevailing party in such proceeding shall be entitled to recover its reasonable costs and expenses, including, without limitation, reasonable attorneys' fees and costs of defense paid or incurred in good faith.

Any permitted assignment shall not relieve Buyer of its obligations hereunder, and Buyer shall remain fully liable for the performance of all terms and conditions unless otherwise agreed to by Seller.

11.16 Remedies Cumulative. The remedies set forth in this Agreement are cumulative and not exclusive to any other legal or equitable remedy available to a party.

11.17 Commissions, Indemnity, Disclosure. Each party represents to the other party that there is no broker representing such party in the current transaction, and that the representing party has incurred no liability for any brokerage commission or finder's fee arising from or relating to the transactions contemplated by this Agreement. Seller shall be responsible for any broker 22 55852.01006\43065213.4
93 commission associated with this purchase. Each party hereby indemnifies and agrees to protect, defend and hold harmless the other party from and against all liability, cost, damage or expense (including without limitation attorneys' fees and costs incurred in connection therewith) on account of any brokerage commission or finder's fee which the indemnifying party has agreed to pay or which is claimed to be due as a result of the actions of the indemnifying party. This Section

11.17 is intended to be solely for the benefit of the parties hereto and is not intended to benefit, nor may it be relied upon by, any person or entity not a party to this Agreement.

11.18 Counterparts/Facsimile/PDF Signatures. This Agreement may be executed in counterparts and when so executed by the parties, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument that shall be binding upon the parties, notwithstanding that the parties may not be signatories to the same counterpart or counterparts. The parties may integrate their respective counterparts by attaching the signature pages of each separate counterpart to a single counterpart. In order to expedite the transaction contemplated herein, facsimile or .pdf signatures may be used in place of original signatures on this Agreement. Seller and Buyer intend to be bound by the signatures on the facsimile or .pdf document, are aware that the other party will rely on the facsimile or .pdf signatures, and hereby waive any defenses to the enforcement of the terms of this Agreement based on the form of signature.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date.

BUYER:

ATTEST:

APPROVED AS TO FORM:

BEST BEST & KRIEGER LLP
M~aM K. Ganbatdi By :Me;.;;~aribaldi (Jan 17, 202511:53 PST) City Attorney
55852.01006\43065213.4
City of Laguna Beach,
a California municipal corporation
By ~C.....\~
Its ~ M»o,A:~
23 94
Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D SELLER SIGNATURE PAGE TO PURCHASE AND SALE AGREEMENT - 2535 LAGUNA

CANYON ROAD
55852.01006\43065213.4
SELLER:

Trust C under the Burkhardt Family Trust
established December 6, 1988
ldSigned by:

By __ _____,L~~-~-i-so~n-2~-D-C60_4_0B- ... ---------
Name: PHILIP E. BURKHARDT
Title: Trustee
24 95
Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D Acceptance by Escrow Holder
Escrow Holder acknowledges receipt of the foregoing Agreement and accepts the instruc • ons contained therein.

Dated\ .... -~~~"'-"t-""--'--' 20_
B
Brenna Ryan, Officer
25 55852.0 I 006\43065213.4
96 Oocusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D

EXHIBIT A

LAND DESCRIPTION
Real property in the City of Laguna Beach, County of Orange, State of California, described as follows:

Parcel 1:

That portion of Lot 2 of Fractional Section 13, in Township 7 South, Range 9 West., San Bernardino Base and Meridian described as follows:

Commencing at station 453+00.85, a point on the center line of Laguna Canyon Road, as shown on a map thereof approved by Nat Neff, Superintendent of Highways of Orange County, California, on November 4, 1929, said point being the Northwest corner of a parcel of land described in deed to Arch Craig by The Yach Company, recorded March 5, 1930 in Book 366, Page 48, Official Records; thence Southerly following the centerline of Laguna Canyon Road, 1459. 15 feet to the most Westerly corner of the parcel of land conveyed to Patricia M. Goldbar, by deed dated May 27, 1939 and recorded in Book 998, page 253, Official Records, said corner being the true point of beginning of the boundary of the property described herein; thence South 58° 49' West., along the Southwesterly line of said land of Goldbar, 197.18 feet to the most Southerly comer of said land; thence South 17° 59' 28" West 109.90 feet more or less to the Northeast.erly corner of the parcel of land conveyed to Georgia Day Robertson, and others by deed dated May 27, 1939 and recorded in Book 1001 Page 119, Official Records; thence North 58° 49' West, along the Northeasterly line of said land of Robertson, 222.26 feet to the center line of Laguna Canyon Road; thence North 31 ° 11' East; along said center line 107 feet to the true point of beginning.

Parcel 2:

The Northeasterly 107 .0 feet of that certain parcel of land described in a deed to Robert P. Kellogg and Hazel A. Kellogg1 recorded October 6, 1944 in Book 1285, Page 357, Official Records, Records of Orange County, State of California.

APN: 632-101-10
Exhibit "A"
55852.0 I 006\43065213.4
97 Docusign Envelope ID: 0BE25851-B03A-481 D-848B-09EBCC6C600D

EXHIBIT B

PERSONAL PROPERTY INVENTORY
Exhibit "B"
55852.01006\430652 I 3.4
98 Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D

EXHIBITC

TRANSFEROR'S CERTIFICATION OF NON-FOREIGN STATUS
Section 1445 of the Internal Revenue Code of 1986, as amended (the "Code"), provides that a transferee of a U.S. real property interest must withhold tax if the transferor is a foreign person. To inform the CITY OF LAGUNA BEACH, a California municipal corporation (the "Transferee"), that withholding of tax under Section 1445 of the Code will not be required upon the transfer of a U.S. real property interest to the Transferee by PHILIP E. BURKHARDT, Trustee of Trust C under the Burkhardt Family Trust established December 6, 1988, as to an undivided fifty percent (50%) interest (the "Transferor"), the undersigned hereby certifies the following on behalf of the Transferor:

1. The Transferor is not a foreign corporation, foreign partnership, foreign trust or foreign estate (as those terms are defined in the Code and the Income Tax Regulations promulgated thereunder);

2. The Transferor's U.S. employer identification number is 47-6852238; and

3. The Transferor's office address is 7042 Palomino Drive, Sanger, CA 92657.

DATED: ______ , 20_
55852.0 I 006\43065213.4
Trust C under the Burkhardt Family Trust
established December 6, 1988
By: _______________ _
Name: PHILIP E. BURKHARDT
Title: Trustee
Exhibit "C"
, ;·111-:r, l""T-fllr~--=F-., -~~~lllllA"~HllllfAr<nTT:i. rn,....n- TTTTI ,·:.r.r-T11,,wi.:a111-)l,l,iiiiilQr n1n::r.r:.--.-;n " 99 Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D

EXHIBITD

BILL OF SALE
This Bill of Sale (the "Bill of Sale") is made as of ______ , 20_, by PHILIP E. BURKHARDT, Trustee of Trust C under the Burkhardt Family Trust established December 6, 1988 ("Transferor").

FOR VALUABLE CONSIDERATION, as set forth in that certain Purchase and Sale Agreement dated _, 20_ (the "Agreement"), Transferor hereby sells, transfers, assigns and delivers to the CITY OF LAGUNA BEACH, a California municipal corporation ("Transferee"), an undivided fifty percent (50%) interest in any and all personal property (the "Personal Property") located within or used in connection with that certain improved real property commonly known as 2307 Laguna Canyon Road, City of Laguna Beach, Orange, California (APN: 632-101-10) (the "Real Property"). The Personal Property shall include, without limitation, the items described in the Personal Property Inventory attached hereto as Schedule 1. l. Transferor hereby assigns all warranties, guarantees and indemnities, whether those warranties are express or implied, and all similar rights which Transferor may have against any other manufacturer or supplier of the Personal property or any portion thereof or against any seller, engineer, contractor or builder, in respect of the Personal Property.

2. Transferor warrants that each item of the Personal Property is in good condition, order and repair and suitable for its intended purpose on the date of this Bill of Sale.

4. This Bill of Sale shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, executors, administrators, successors and assigns.

DATED: ______ , 20_
TRANSFEROR:

Exhibit "D"
55852.01006\43065213.4
100
Docusign Envelope ID: 0BE25B51-B03A-4B1 D-848B-09EBCC6C600D 55852.01006\430652 I 3.4
Trust C under the Burkhardt Family Trust
established December 6, 1988
By: ------------------
Name: PHILIP E. BURKHARDT
Title: Trustee
2 101
Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D SCHEDULE 1

PERSONAL PROPERTY INVENTORY
All Personal Property existing at the Real Property as of the Closing Date Exhibit "D"
55852.01006\43065213.4
102
Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D

EXHIBITE

GENERAL ASSIGNMENT
This Assignment (the "Assignment") is dated for reference purposes only as of _______ , by PHILIP E. BURKHARDT, Trustee of Trust C under the Burkhardt Family Trust established December 6, 1988 ("Assignor").

A. All equipment leases, service and/or maintenance agreements and contracts relating to the Real Property (collectively, the "Contracts")[, as more particularly described in Schedule 1 attached hereto];
B. All permits, licenses, consents, registrations and other similar approvals applicable to the Real Property (collectively, the "Approvals")[, which Approvals are more particularly described in Schedule 2 attached hereto];
C. All as-built plans and specifications for: (1) the Real Property; (2) any and all improvements used in connection with the operation or occupancy of the Real Property or located upon the Real Property (the "Improvements"); and (3) any and all personal property owned by Assignor located within or used in connection with the operation of the Real Property and Improvements (the "Personal Property") (collectively, the "Plans"); and D. All warranties of which Assignor is the beneficiary (the "Warranties") with respect to the Improvements or Personal Property.

This Assignment shall not supersede the Agreement and, in the event of conflict between this Assignment and the Agreement, the Agreement shall control.

This Assignment shall be binding upon and inure to the benefit of Assignor and Assignee and their respective heirs, executors, administrators, successors and assigns.

ASSIGNOR:

Exhibit "E"
55852.01006\43065213.4
103
Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D 55852.01006\430652 I 3.4
Trust C under the Burkhardt Family Trust
established December 6, 1988
By: ------------------
Name: PHILIP E. BURKHARDT
Title: Trustee
Date: --------------
Exhibit "E"
104
Docusign Envelope ID: 0BE25B51-B03A-4B 1 D-848B-09EBCC6C600D 55852.01006\43065213.4
SCHEDULE 1
Note to Seller: List all equipment leases, service
and/or maintenance agreements and contracts
relating to the Real Property - if none known. delete
this schedule and bracketed phrase but leave
general assignment of unspecified contracts.

Leases should have a separate assignment. so do
not assign seller's interest in leases in this
document.

Exhibit "E"
105
Docusign Envelope ID: 0BE25B51-B03A-4B1 D-848B-09EBCC6C600D 55852.01006\430652 l 3.4
SCHEDULE2
Note to Seller: List all permits, licenses, consents.
registrations and other similar approvals
applicable to the Real Property- if none known,
delete this schedule and bracketed phrase but leave
general assignment of unspecified contracts
Exhibit "E"
106
Docusign Envelope ID: 0BE25B51-B03A-4B1 D-848B-09EBCC6C600D

RECORDING REQUESTED BY

AND WHEN RECORDED MAIL TO
City of Laguna Beach
505 Forest Ave.

Laguna Beach, CA 92561
ATTN: City Clerk

EXEMPT FROM RECORDING FEES PURSUANT
TO GOVERNMENT CODE SECTION 27383
APNs: 632-101-10

EXHIBIT F

GRANT DEED

SPACE ABOVE THIS LINE FOR RECORDER'S USE
Grant Deed
The undersigned Grantor(s) declare(s): City of Laguna Beach is exempt from property taxes Documentary transfer tax is $0.

D Computed on full value of property conveyed, or
D Computed on full value less value of liens and encumbrances remaining at time of sale.

D Unincorporated area J:gj City of Laguna Beach and
FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, PHILIP E. BURKHARDT, Trustee of Trust C under the Burkhardt Family Trust established December 6, 1988,
hereby GRANT(S) to
CITY OF LAGUNA BEACH, a California municipal corporation an undivided fifty percent (50%) interest in the following described real property in the City of Laguna Beach County of Orange
State of California:

SEE ATTACHED EXHIBIT A
Dated: _______ , 20_
By: [Do not execute, Exhibit only]
Exhibit "F"
55852.01006\43065213.4
107
Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D

STATE OF CALIFORNIA
COUNTY OF _________ _
)
)
On ___ _, 20 before me, _____________ _, Notary Public, personally appeared-----------------~ who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature:. _________________ _ (seal)
Exhibit "F"
55852.01006\43065213.4
108
Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D

CERTIFICATE OF ACCEPTANCE
Pursuant to Section 27281 of the
California Government Code
This is to certify that the undivided fifty percent (50%) interest in real property conveyed by the Grant Deed dated ________ , 20_, from PHILIP E. BURKHARDT, Trustee of Trust C under the Burkhardt Family Trust established December 6, 1988, to the City of Laguna Beach, a municipal corporation, is hereby accepted by the undersigned officer on behalf of the City of Laguna Beach, pursuant to the authority conferred by Resolution No. ___ , adopted by the City Council of the City of Laguna Beach on _________ , and the Grantee consents to recordation thereof by its duly authorized officer.

Dated: _______ , 20_ CITY OF LAGUNA BEACH,
a California municipal corporation
By-------------
Exhibit "F"
55852.01006\43065213.4
109
Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D

EXHIBIT G

LIST OF LEASES AND SUMMARY OF LEASE TERMS
. Current . Copy of Property Umt Use M Tenant Listed SF 2307 Apt/
2309
1+1
2307 1 Flex
2307 2 Flex
2307 3 Flex
2307 4 Flex
2307 5 Flex
2307 6 Flex
2307 7 Flex
2307 8 Flex
2307 9 Flex
2307 10 Flex
55852.01006\430652 I 3.4
Rent (0 ) Lease
1,800 · Charlotte
Henderson
835 Edith Otto
1,365 Colas (Darrell)
Moore
1,200 Tom Lamb
1,080 Clayton Dubin &
Amanda Hunter
Peter Blake
1,350 Gallery I
Stephanie
... ~.c3Gbi~r(9} ....
1,650 Jan Mach
1,385 Marlo Bartels
1,300 Mike Ezzell
1,300 Casey Parlette
850 Issac Anderson &
Jason Hanek
Exhibit "H"
NIA
N/A
N/A
700
500
725
N/A
N/A
N/A
N/A
N/A
Yes
No
Missing
Page4
Missing
Pages 5-7
Yes
Unsigned
Yes
No
No
Missing
Pages 5-7
No
110
Docusign Envelope ID: 0BE25B51-B03A-4B1 D-848B-09EBCC6C600D

EXHIBITH

ASSIGNMENT OF LEASES

ASSIGNMENT AND ASSUMPTION OF LEASES
This ASSIGNMENT OF LEASES (the "Assignment"), dated _____ , __ (the "Assignment Date"), 1s by and between ("Assignor"),
-------------("Assignee").

B. Concurrently herewith, Assignee has acquired the Property from Assignor.

3. Effective Date. This Assignment shall be conditioned and effective upon the conveyance to Assignee of record fee title to the Property (the "Effective Date").

Exhibit "H"
55852.01006\43065213.4
111
Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D

4. Binding on Successors. This Assignment shall be binding on and shall inure to the benefit of the parties hereto, their heirs, executors, administrators, successors in interest and assigns.

IN WITNESS WHEREOF, the parties hereto have signed this Assignment as set forth below.
55852.010061430652 I 3.4

ASSIGNOR
Trust C under the Burkhardt Family Trust established
December 6, 1988
By: ------------------
Name: PHILIP E. BURKHARDT
Title: Trustee

ASSIGNEE
By:·------~--=
Name: --------- 1 ts:

Exhibit "H"
112
Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D 55852.01006\430652 I 3.4
EXHIBIT 1 TO ASSIGNMENT OF LEASES

LEASES TO BE ASSIGNED
Exhibit "H"
113
55852.01006\44451124.1
Amendment to Purchase and Sale Agreement

SECOND AMENDMENT TO AGREEMENT FOR PURCHASE AND SALE OF REAL

PROPERTY AND JOINT ESCROW INSTRUCTIONS
This Second Amendment to Agreement for Purchase and Sale of Real Property and Joint Escrow Instructions (“Second Amendment”) is made as of December __, 2025 (the “Effective Date”), by and between PHILIP E. BURKHARDT, Trustee of Trust A under the Burkhardt Family Trust established December 6, 1988 (“Seller”), and THE CITY OF LAGUNA BEACH, a California municipal corporation (“Buyer”), who agree as follows:

AGREEMENT

1. Background.

A. Seller and Buyer have entered into that certain Purchase and Sale Agreement dated January 16, 2025 as amended by that certain First Amendment to Agreement for Purchase and Sale of Real Property and Joint Escrow Instructions dated as of February 28, 2025 (the “First Amendment”) (as amended, the “Purchase Agreement”), for the purchase and sale of that certain located at 2535 Laguna Canyon Road, City of Laguna Beach, County of Orange, State of California, and as further described in Exhibit A to the Purchase Agreement (the “Property”). Capitalized terms not defined herein shall have the meanings set forth in the Purchase Agreement.

C. Buyer and Seller now desire to revive the Purchase Agreement and modify same on the terms and conditions set forth herein.

2. Due Diligence Period. Notwithstanding anything to the contrary set forth in the Purchase Agreement, and notwithstanding Buyer’s disapproval of its due diligence investigation, the Due Diligence Period pursuant to Section 3.1.1 of the Purchase Agreement is hereby extended, and shall expire at 5:00 p.m. on January 20, 2026.

3. Closing. Subject to the satisfaction of the conditions precedent set forth in Article 4 of the Purchase Agreement, the Closing Date is hereby extended to January 30, 2026.

4. Effect on Agreement. All other terms of the Purchase Agreement, except as expressly modified herein, shall continue in full force and effect. In the event and to the extent of any conflict between the terms of this Second Amendment and the terms of the Purchase Agreement, the terms of this Second Amendment shall govern.

5. Counterparts. This Second Amendment may be executed in any number of identical counterparts. If so executed, each of such counterparts is to be deemed an original for all purposes and all such counterparts shall collectively constitute one Agreement. This Second Docusign Envelope ID: C1C79568-390E-4CE4-BDD8-FEAC7BFE6A54 114
55852.01006\44451124.1
Amendment to Purchase and Sale Agreement
2 Amendment may be executed by facsimile or PDF signatures which shall be binding on the parties hereto.

6. Incorporation of Recitals. The Recitals are hereby incorporated into this Second Amendment.
[Signatures on Following Page]
Docusign Envelope ID: C1C79568-390E-4CE4-BDD8-FEAC7BFE6A54 115
55852.01006\44451124.1
Signature Page to PSA Amendment
IN WITNESS WHEREOF, Seller and Buyer have executed this Second Amendment effective as of the day and year first above written.

SELLER:

TRUST A UNDER THE BURKHARDT FAMILY
TRUST established December 6, 1988
By: Philip E. Burkhardt
Its: Trustee
BUYER:

CITY OF LAGUNA BEACH, a California
municipal corporation
By: ______________________
Its: _______________________
Docusign Envelope ID: C1C79568-390E-4CE4-BDD8-FEAC7BFE6A54 116
55852.01006\44451122.1
Amendment to Purchase and Sale Agreement

SECOND AMENDMENT TO AGREEMENT FOR PURCHASE AND SALE OF REAL

PROPERTY AND JOINT ESCROW INSTRUCTIONS
This Second Amendment to Agreement for Purchase and Sale of Real Property and Joint Escrow Instructions (“Second Amendment”) is made as of December __, 2025 (the “Effective Date”), by and between PHILIP E. BURKHARDT, Trustee of Trust C under the Burkhardt Family Trust established December 6, 1988 (“Seller”), and THE CITY OF LAGUNA BEACH, a California municipal corporation (“Buyer”), who agree as follows:

AGREEMENT

1. Background.

A. Seller and Buyer have entered into that certain Purchase and Sale Agreement dated January 16, 2025 as amended by that certain First Amendment to Agreement for Purchase and Sale of Real Property and Joint Escrow Instructions dated as of February 28, 2025 (the “First Amendment”) (as amended, the “Purchase Agreement”), for the purchase and sale of that certain located at 2535 Laguna Canyon Road, City of Laguna Beach, County of Orange, State of California, and as further described in Exhibit A to the Purchase Agreement (the “Property”). Capitalized terms not defined herein shall have the meanings set forth in the Purchase Agreement.

C. Buyer and Seller now desire to revive the Purchase Agreement and modify same on the terms and conditions set forth herein.

3. Closing. Subject to the satisfaction of the conditions precedent set forth in Article 4 of the Purchase Agreement, the Closing Date is hereby extended to January 30, 2026.

5. Counterparts. This Second Amendment may be executed in any number of identical counterparts. If so executed, each of such counterparts is to be deemed an original for all purposes and all such counterparts shall collectively constitute one Agreement. This Second Docusign Envelope ID: C1C79568-390E-4CE4-BDD8-FEAC7BFE6A54 117
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Amendment to Purchase and Sale Agreement
2 Amendment may be executed by facsimile or PDF signatures which shall be binding on the parties hereto.

6. Incorporation of Recitals. The Recitals are hereby incorporated into this Second Amendment.
[Signatures on Following Page]
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IN WITNESS WHEREOF, Seller and Buyer have executed this Second Amendment effective as of the day and year first above written.

SELLER:

TRUST C UNDER THE BURKHARDT FAMILY
TRUST established December 6, 1988
By: Philip E. Burkhardt
Its: Trustee
BUYER:

CITY OF LAGUNA BEACH, a California
municipal corporation
By: ______________________
Its: _______________________
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PURCHASE AND SALE AGREEMENT

AND JOINT ESCROW INSTRUCTIONS
This Purchase and Sale Agreement and Joint Escrow Instructions (this "Agreement") is made as of January }b, 2025 (the "Effective Date"), between PHILIP E. BURKHARDT, Trustee of Trust A under the Burkhardt Family Trust established December 6, 1988 ("Seller"), and CITY OF LAGUNA BEACH, a California municipal corporation ("Buyer").

ARTICLE 1. AGREEMENT OF SALE.

Subject to and on the terms and conditions of this Agreement, Seller shall sell to Buyer and Buyer shall purchase from Seller an undivided fifty percent (50%) interest in all of the following:

1.1 Land. The real property consisting of approximately 40,780 square feet (0.94 acres) located at 2535 Laguna Canyon Road, City of Laguna Beach, Orange, California (APN: 632-091- 12), which is more particularly described in Exhibit A, together with (a) all privileges, rights, easements and appurtenances belonging to the real property, including without limitation all minerals, oil, gas and other hydrocarbon substances on and under the real property, (b) all development rights, air rights, water, water rights and water stock relating to the real property, and ( c) all right, title and interest of Seller in and to any streets, alleys, passages, other easements and other rights-of-way or appurtenances included in, adjacent to or used in connection with such real property, before or after the vacation thereof (collectively, the "Land");

1.4 Service Contracts. Those Service Contracts (defined in Section 5.7) which Buyer expressly agrees to assume;

1.5 Leases. All of the landlord's interest in and to the Leases (the "Leases") between Seller, as Landlord, and the tenants ("Tenants") in occupancy under the Leases referenced in Section 5.7, below and set forth on Exhibit G; and
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ARTICLE 2. PURCHASE PRICE.

2.1 Amount; Contingencies. The purchase price (the "Purchase Price") for an undivided fifty percent (50%) interest in the Property shall be $2,475,000.00. Seller acknowledges and agrees that Buyer is not requesting a financing or appraisal contingency in contemplation of the Purchase Price, however, Buyer may, in its sole discretion, engage with an appraiser to evaluate the value of the Property during the Due Diligence Period (as defined in Section 3.1.1 ). The parties further acknowledge and agree that the Purchase Price is predicated on the assumption that no adverse environmental conditions exist on the Property. Should Buyer determine, in its reasonable discretion, that adverse environmental conditions are present on the Property during its Due Diligence Investigation (as defined below in Section 3.1.2), the parties shall, prior to expiration of the Due Diligence Period, negotiate in good faith, the manner in which such conditions shall be remedied and the Due Diligence Period shall be tolled for the duration of such negotiations.

2.2 Deposit/Purchase Price.

2.2.2 • Buyer shall pay the Purchase Price to Seller through escrow at the Closing described in Section 9.1. On or before the Closing Date (as defined below), Buyer shall deposit into Escrow the Purchase Price, subject to adjustment by reason of any applicable prorations and the allocation of closing costs described below.

2.2.3 The Deposit and Purchase Price shall be made by wire transfer of federal funds, cashier's check or in another immediately available form. Notwithstanding anything herein to the contrary, One Hundred Dollars ($100.00) of the Initial Deposit (the "Independent Consideration") shall not be refundable to Buyer, but shall represent consideration for this Agreement and shall be paid to Seller. The Independent Consideration shall be paid to Seller 2 55852.0 I 006\42962433.6
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Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D within 3 days of the Effective Date. The Independent Consideration shall serve as consideration for the granting of the time periods herein contained for Buyer to exercise Buyer's right to satisfy and approve all of Buyer's conditions herein contained. If the Deposit is refunded to Buyer for any reason pursuant to this Agreement, the Independent Consideration shall be subtracted from the Deposit pursuant to this Section.

ARTICLE 3. DUE DILIGENCE.

3.1 Due Diligence Period; Inspection and Access.

3.1.2 Access to Information and the Property. Buyer shall conduct its investigation of the Property during the Due Diligence Period at no cost to Seller. This investigation ("Due Diligence Investigation") may include, at Buyer's option: a physical inspection of the Land and all Improvements thereon, including soil, geological and other tests, engineering evaluations of the mechanical, electrical, HV AC and other systems in the Improvements and review of the Plans; review of all governmental matters affecting the Property, including zoning, environmental and building permit and occupancy matters; review and verification of all financial and other information previously provided by Seller relating to the operation of the Property; review of the condition of title to the Property, including the building, structural system and roof inspection; and review of such other matters pertaining to an investment in the Property as Buyer deems advisable. In addition to the Preliminary Documents delivered to Buyer pursuant to Section 3.2, Buyer and its representatives shall have the right of access during reasonable business hours to all files, books and records maintained by Seller or its agents (including, without limitation, all of the Additional Documents to be made available to Buyer at the Property pursuant to Section 3.3), wherever located, relating to the Property, including the right to copy the same. Buyer and its representatives shall also have the right of access to the Property during reasonable business hours to conduct its investigation of the physical condition of the Property. Seller agrees that the rights granted to Buyer herein and the results of its Due Diligence Investigation shall not relieve Seller of any obligations Seller may have under any other provisions of this Agreement, or under other documents entered into concurrently herewith, or implied by law, nor shall they constitute a waiver by Buyer of the right to enforce any of the same. Seller shall cooperate with Buyer in its due diligence activities and provide access to the Property, its records, or provide information so long as it is within Seller's control. 3 55852.01006\42962433.6
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3.2.6 Licenses, Etc. Copies of any licenses, permits or certificates required by governmental authorities in connection with construction or occupancy of the Improvements, including, without limitation, building permits, certificates of completion, certificates of occupancy and environmental permits and licenses;
3 .2. 7 Lease Documentation. Fully executed copies of all of the Leases set forth on Exhibit G, including, without limitation, new Leases or Lease amendments for such leases for which an original is either lost, incomplete, unsigned, or otherwise unavailable, along with duly executed estoppel certificates on a form reasonably acceptable to Buyer disclosing no defaults or 4 55852.01006\42962433.6
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Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D alleged defaults by either Seller or the Tenant under such Lease or any Tenant bankruptcy, or any dispute between Seller and a Tenant (the "Preliminary Estoppels"), the Leases and the Preliminary Estoppels shall be referred to herein as the "Lease Documentation"); and

3.3 Additional Documents and Information. From the Effective Date through the Closing Date, Seller shall make available to Buyer at the Property in accordance with Section 3.1, the documents and information described in this Section 3.3 (collectively, the "Additional Documents"):
3 .3 .1 Agreements. Copies of written, and written descriptions of oral, easements, covenants, restrictions, agreements, contracts and other documents, whether existing or, to the knowledge of Seller, proposed as of the Effective Date, including without limitation any agreements relating to the insurance, service, operation, repair, supply, advertising, promotion, sale, leasing or management of the Property, which (a) affect the Property, (b) are not disclosed by the Preliminary Title Report, and (c) have not been delivered to Buyer pursuant to Section 3.2.

If no such documents exist, Seller shall furnish its certification to that effect;

3.3.3 Insurance Policies. Copies of certificates evidencing the insurance carried by Seller of the Property;
3;3.4 Other Documents. All data, correspondence, documents, agreements, waivers, notices, applications and other records with respect to the Property relating to transactions with taxing authorities, governmental agencies, utilities, vendors and others with whom Buyer may be dealing from and after the Closing Date; and

3.3.5 Requested Information. Such other documents and information concerning the Property as Buyer may reasonably request.

3.4 Approval/Disapproval of Due Diligence Investigations. Buyer shall approve or disapprove the results of Buyer's Due Diligence Investigation, in the exercise of Buyer's sole discretion, by written notice delivered to Seller no later than the expiration of the Due Diligence Period. Buyer's disapproval shall terminate this Agreement unless, at the time Buyer gives notice of its disapproval, Buyer also notifies Seller of Buyer's desire to enter into negotiations with Seller for the purpose of reaching an accommodation concerning the disapproval. If Buyer so notifies Seller and the parties have not reached a written agreement satisfactory to both of them regarding 5 55852.0 I 006\42962433.6
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Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D the disapproval within 10 days after the date of the disapproval notice, Buyer, at its option, may either (a) elect to terminate this Agreement by so notifying Seller and recover the Deposit, or (b) elect to proceed with the transactions contemplated by this Agreement notwithstanding its earlier disapproval. If Buyer fails to deliver to Seller notice of its approval or disapproval of the results of its Due Diligence Investigation, Buyer shall be deemed to have disapproved such results. If Buyer elects to terminate the Agreement, Buyer shall return to Seller all of the Preliminary Documents and Additional Documents previously delivered by Seller to Buyer within 5 business days of such termination, and Escrow shall immediately refund Buyer the Deposit, and Buyer shall have no further obligations to Seller.

3.5 Title Review.

3.5. l Monetary Liens. At its expense, Seller shall remove all liens on the Property at or prior to the Closing (collectively, "Monetary Liens"): (i) all delinquent taxes, bonds and assessments and interest and penalties thereon (it being agreed that Seller shall not be required to remove any non-delinquent taxes and assessments imposed by any governmental agency that are paid with the property taxes for the Property); and (ii) all other monetary liens, including without limitation all those shown on the Preliminary Title Report (including judgment and mechanics' liens, whether or not liquidated, and mortgages and deeds of trust, with Seller being fully responsible for any fees or penalties incurred in connection therewith).

3.5.2 Approval/Disapproval of Title Review. Buyer shall approve or disapprove of the Preliminary Title Report, the Survey and any exceptions to title shown thereon (other than the Monetary Liens) in the exercise of Buyer's sole discretion, by the expiration of the Due Diligence Period. If Buyer disapproves, Buyer may either (a) terminate this Agreement by giving Seller written notice of termination or (b) give Seller a written notice ("Disapproval Notice") identifying the disapproved title matters ("Disapproved Title Matters"). With respect to any Disapproved Title Matters, other than the Monetary Liens, Seller shall notify Buyer in writing within 5 days after Seller's receipt of the Disapproval Notice whether Seller will cause the Disapproved Title Matters to be removed or cured at or prior to Closing. If Seller elects not to remove or cure all Disapproved Title Matters, Buyer may, at its option: (i) subject to satisfaction of the other conditions to Closing, close the purchase of the Property and take title subject to the Disapproved Title Matters which Seller elects not to remove or cure; or (ii) terminate this Agreement in accordance with Section 9 .6.1.
3 .5 .3 Buyer's Options. If any Disapproved Title Matters (including the Monetary Liens) have not been removed at least 5 days prior to Closing or provision for their removal at the Closing has not been made to Buyer's satisfaction, Buyer may, at its option: (i) close the purchase of the Property and take title subject to the Disapproved Title Matters which have not been removed; (ii) close the purchase of the Property and cure or remove the Disapproved Title Matters which have not been removed. Buyer may credit the costs of such cure or removal against the Purchase Price by reducing the amount of cash payable by Buyer at the Closing, but only to the extent such costs are expended to remove (A) Monetary Liens referred to in Section 3.5.1 or (B) Disapproved Title Matters which Seller agreed to remove; or (iii) terminate this Agreement in accordance with Section 9.6.1.
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ARTICLE 4. CONDITIONS PRECEDENT.

4.1.1 Due Diligence. Buyer having approved of the results of its Due Diligence Investigation pursuant to Section 3 .4;

4.1.2 Title Review. Buyer having approved of the results of its review of title pursuant to Section 3.5.

4.1.3 Title Policy. Seller having caused the Title Company to deliver to Buyer (a) a CLTA Owner's policy oftitle insurance, provided that Buyer may require an ALTA Owner's Policy if Buyer pays the incremental premium for AL TA coverage ("Title Policy") ( or at Buyer's election a binder therefor) for the Property, or (b) the Title Company's irrevocable commitment to issue such policy of title insurance, (including such coinsurance, reinsurance and endorsements as Buyer shall require), with liability equal to the Purchase Price showing fee title to the Property vested in Buyer and subject only to: (i) the matters and exceptions which were approved by Buyer pursuant to Section 3 .5; and (ii) the standard printed exceptions in the form of title policy called for ( collectively, "Conditions of Title").

4.1.5 Representations and Warranties. The representations and warranties of Seller set forth in Article 5 being true and accurate on the Closing Date, as if made on such date.

4.1.8 Condition of Property. The non-occurrence of any material adverse change to the physical status of the Property between the end of the Due Diligence Period and Closing.

4.1.9 Possession of FF&E's. Buyer obtaining legal possession of all furniture, fixtures, and equipment integral to the operation of the Property, and otherwise owned by Seller. 7 55852.01006\42962433.6
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4.1.11 Closing Estoppel Certificates. Seller shall have delivered or caused to be delivered the Closing Estoppel Certificates in accordance with Section 9.3.5.

4.2.1 Covenants. Buyer performing and complying in all material respects with all of the terms of this Agreement to be performed and complied with by Buyer prior to or at the Closing.

4.2.2 Representations and Warranties. The representations of Buyer set forth in Article 6 being true and accurate on the Closing Date, as if made on such date.

ARTICLE 5. SELLER'S REPRESENTATIONS AND WARRANTIES.

5.3 Documents. All of the Preliminary Documents and the Additional Documents which have been delivered or made available to Buyer pursuant to Article 3, and all other documents delivered to Buyer by or on behalf of Seller (a) are true, correct and complete copies of what they purport to be, (b) represent truly the factual matters stated therein, ( c) are in full force and effect, (d) have not been modified, except as set forth therein and (e) do not omit any information required to make the submission thereof accurate and complete in all material respects. 8 55852.01006\42962433.6
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5.5 Utilities. All water, sewer, gas, electric, telephone and drainage facilities, and all other utilities required by law or by the normal operation of the Property, are (a) installed to the property lines of the Property, (b) connected to the Property, ( c) adequate to service the Property in its present use and to permit full compliance with all requirements of law and normal usage by the occupants of the Property and (d) in good working order and repair. All such utilities and storm and sanitary sewers required for the operation of the Property enter the Land through adjoining public streets or through adjoining private land in accordance with valid public or private easements that will inure to the benefit of Buyer.

5.6 Licenses. Seller has all required licenses, permits (including, without limitation, all building permits and occupancy permits), easements and rights-of-way which are required in order to continue the present use of the Property. Seller has no knowledge of any law or regulation of any governmental authority having jurisdiction which might require the Property to be improved beyond its present state or which might restrict the use and enjoyment of the Property in the manner it is presently being used and enjoyed.

5.7 Contracts/Leases/Occupancy Rights.

5.8 Litigation. There are no actions, suits, proceedings, judgments, orders, decrees or governmental investigations pending or threatened against the Property or Seller which could affect the Property or the purchase, use or enjoyment thereof by Buyer. 9 55852.0 I 006\42962433.6
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5.10.1 Definitions. For purposes of this Agreement:
(a) "Environmental Law(s)" means the Comprehensive
Environmental Response, Compensation, and Liability Act of 1980, 42 U .S.C. Sections 9601, et seq., the Resource Conservation and Recovery Act of 1976, 42 U.S.C. Sections 6901 et~-, the Toxic Substances Control Act, 15 U.S.C. Sections 2601 et. seq., the Hazardous Materials Transportation Act, 49 U.S.C. 1801 et seq., the Clean Water Act, 33 U.S.C. Sections 1251 et~-, The Safe Drinking Water and Toxic Enforcement Act of 1986 (Cal. H&S Code Sections 25249.5- 25249.13), the Carpenter-Preseley-Tanner Hazardous Substance Account Act (Cal. H&S Code Sections 25300 et~-), and the California Water Code Sections 1300, et seq., as said laws have been supplemented or amended to date, the regulations promulgated pursuant to said laws and any other federal, state or local law, statute, rule, regulation or ordinance which regulates or proscribes the use, storage, disposal, presence, cleanup, transportation or Release or threatened Release into the environment of Hazardous Material.
(b) "Hazardous Material" means any substance which is (i) designated, defined, classified or regulated as a hazardous substance, hazardous material, hazardous waste, pollutant or contaminant under any Environmental Law, as currently in effect or as hereafter amended or enacted, (ii) a petroleum hydrocarbon, including crude oil or any fraction thereof and all petroleum products, (iii) PCBs, (iv) lead, (v) asbestos, (vi) flammable explosives, (vii) infectious materials or (viii) radioactive materials. (c) "Release" means any spilling, leaking, pumping, pouring, emitting, discharging, injecting, escaping, leaching, dumping or disposing into the environment of any Hazardous Material (including the abandonment or discarding of barrels, containers, and other receptacles containing any Hazardous Material).

5.10.2 Representations.
(a) The Property and all existing uses and conditions of the Property are in compliance with all Environmental Laws, and Seller has not received any written notice of violation issued pursuant to any Environmental Law with respect to the Property or any use or condition thereof.
(b) Neither Seller nor any other present or former owner of the Property has used, handled, stored, transported, released or disposed of any Hazardous Material on, under or from the Property in violation of any Environmental Law. ( c) There is no Release of any Hazardous Material existing on, beneath or from or in the surface or ground water associated with the Property. 10 55852.0 I 006\42962433.6
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Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D (d) All required permits, licenses and other authorizations required by or issued pursuant to any Environmental Law for the ownership or operation of the Property by Seller have been obtained and are presently maintained in full force and effect. ( e) There exists no writ, injunction, decree, order or judgment outstanding, nor any lawsuit, claim, proceeding, citation, directive, summons or investigation pending or, to Seller's knowledge, threatened pursuant to any Environmental Law relating to (i) the ownership, occupancy or use of any portion of the Property by Seller or occupant or user of any portion of the Property or any former owner of any portion of the Property, (ii) any alleged violation of any Environmental Law by Seller or occupant or user of any portion of the Property or any former owner of any portion of the Property or (iii) the suspected presence, Release or threatened Release of any Hazardous Material on, under, in or from any portion of the Property. (f) There are no above-ground or underground tanks located on the Property used or formerly used for the purpose of storing any Hazardous Material. (g) No asbestos abatement or remediation work has been performed on the Property.
(h) There is no PCB-containing equipment or PCB-containing material located on or in the Property.
5 .11 Title to the Property. Seller has good and marketable title to the Property, subject to the Conditions of Title. There are no outstanding rights of first refusal or first look, options to purchase, rights of reverter, or claim of right relating to the transfer or sale of the Property or any interest therein. To Seller's knowledge, there are no unrecorded or undisclosed documents or other matters which affect title to the Property. No person holding a security interest in the Property or any part thereof has the right to consent or deny consent to the sale of the Property as contemplated herein, and Seller has the right to pay off such person and to remove all such liens as of the Closing Date. Seller has enjoyed the continuous and uninterrupted quiet possession, use and operation of the Property.

5.12 Seller's Authority. Seller has the requisite power and authority to own and operate the Property and conduct its business where the same is now owned or operated. The execution, delivery and performance of this Agreement by Seller have been duly and validly authorized by all necessary action and proceedings, and no further action or authorization is necessary on the part of Seller ( or its board of directors or shareholders) in order to consummate the transactions contemplated herein. This Agreement and the other documents executed by Seller in connection herewith are legal, valid and binding obligations of Seller, enforceable in accordance with their respective terms. Neither the execution and delivery of this Agreement by Seller, nor performance of any of its obligations hereunder, nor consummation of the transactions contemplated hereby, shall conflict with, result in a breach of, or constitute a default under, the terms and conditions of the organizational documents pursuant to which Seller was organized, or any indenture, mortgage, deed of trust, agreement, undertaking, instrument or document to which Seller or any affiliate thereof is a party or is bound, or any order or regulation of any court, regulatory body, administrative agency or governmental body having jurisdiction over Seller. 11 55852.01006\42962433.6
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Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D 5 .13 Parking. Seller has received no written notice from any governmental agency that the parking spaces on the Property are in violation of law.

5.14 Zoning. Seller has received no written notice from any governmental agency that the Property is not in compliance with zoning requirements and laws.

5.15 Foreign Person. Seller is not a "foreign person" within the meaning of Section 1445(f) of the Internal Revenue Code.

ARTICLE 6. BUYER'S REPRESENTATIONS AND WARRANTIES.

Buyer makes the following representation and warranties to Seller with the understanding that each such representation and warranty is material and is being relied upon by Seller:

ARTICLE 7. SURVIVAL OF REPRESENTATIONS AND WARRANTIES.
7 .1 Survival of Warranties. Buyer and Seller agree that each representation and warranty, covenant by the respective parties contained herein or made in writing pursuant to this 12 5 5852.01006\42962433.6
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Docusign Envelope ID: 0BE25B51-B03A-4B1 D-848B-09EBCC6C600D Agreement are intended to and shall be deemed made as of the date of this Agreement or such writing and again at the Closing, shall be deemed to be material, and unless expressly provided to the contrary shall survive the execution and delivery of this Agreement, the Deed and the Closing.

ARTICLE 8. SELLER'S PRECLOSING COVENANTS.

8.2 Insurance. Seller shall maintain or cause to be maintained in full force and effect its present insurance policies for the Property.

8.4 No Transfers. Seller shall not sell, encumber or otherwise transfer any interest in all or any portion of the Property, or agree to do so.

8.6 Maintenance. At its sole cost and expense, Seller shall operate and maintain the Property such that on the Closing Date the Property shall be in at least as good a condition and repair as on the Effective Date, reasonable wear and tear excepted. Without limiting the generality of the foregoing, Seller shall, at a minimum, spend such amounts for repair and maintenance as are consistent with its prior practice. Seller shall promptly advise Buyer of any significant repair or improvement required to keep the Property in such condition. Seller shall not make any material alterations to the Property, or remove any of the Personal Property therefrom, without Buyer's prior consent, unless such Personal Property so removed is simultaneously replaced with new Personal Property of similar quality and utility.
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ARTICLE 9. CLOSING.

9.1 Time. Provided all conditions set forth in Article 4 have been either satisfied or waived, and to the extent such date has not been extended pursuant to Section 3. I. I, above, the parties shall close this transaction (the "Closing"), on February 28, 2025 (the "Closing Date"), as such date may be extended by the provisions of Article 10. Notwithstanding the foregoing, Buyer shall have the right to extend the Closing Date to March 28, 2025 by providing written notice on or before the original Closing Date ("Closing Extension Notice") and depositing into Escrow the Extension Deposit in accordance with Section 2.2.4, above.

9.3 Seller's Deposit of Documents and Funds Into Escrow. Seller shall deposit into escrow on or before Closing (unless otherwise set forth herein) the following documents:

9.3.1 A duly executed and acknowledged grant deed, in the form acceptable to Buyer, conveying the Property to Buyer ("Grant Deed") in the form attached as Exhibit F;

9.3.2 A duly executed bill of sale, in the form of Exhibit D, conveying the Personal Property to Buyer free and clear of liens, encumbrances and restrictions ("Bill of Sale");

9.3.4 A duly executed assignment, in the form of Exhibit H, assigning to Buyer all of Seller's interest in and to the Leases (the "Assignment of Leases"); 14 55852.01006\42962433.6
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9.3.8 Seller's Non-foreign Certification;

9.3.9 All records and files relating to the management or operation of the Property, including, without limitation, property tax bills, insurance, and property taxes; and

9.3.11 Form 593;

9.3.12 Notice letter to tenants regarding new owner and addresses for payment of rent payment ("Tenant Notice Letter").

9.5 Buyer's Deposit of Documents and Funds. Buyer shall deposit into escrow:

9.5.2 A duly executed counterpart of the Assignment of Leases; and 15 55852.01006142962433.6
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9.6 Default, Termination and Remedies.

9.6.3 Release from Escrow. Upon termination of this Agreement pursuant to Section 9.6.l or 9.6.2, Escrow Holder shall promptly return to Buyer and Seller, respectively, all documents and monies deposited by them into escrow without prejudice to their rights and remedies hereunder.

OF ESCROW BUYER FAILS TO COMPLY WITH OR PERFORM BUYER'S OBLIGATIONS UNDER THIS AGREEMENT AND (EXCEPT AS OTHERWISE PROVIDED IN SECTION 9.6)

DOES NOT CURE SUCH FAILURE WITHIN TEN BUSINESS DAYS AFTER SELLER'S WRITTEN NOTICE OF SUCH FAILURE, THEN SELLER MAY THEREAFTER: (I) TERMINATE THIS AGREEMENT; (II) RECEIVE AND RETAIN THE DEPOSIT AS

AGREEMENT BY REASON OF BUYER'S DEFAULT, BUYER AND SELLER SHALL BE

RELIEVED OF ANY FURTHER OBLIGATION TO EACH OTHER WITH RESPECT TO THIS

AGREEMENT AND THE PROPERTY EXCEPT FOR ANY OBLIGATIONS WHICH 16 55852.01006\42962433.6
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Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D EXPRESSLY SURVIVE. IT IS EXPRESSLY UNDERSTOOD AND AGREED BY BUYER AND SELLER: THAT SELLER WILL INCUR SUBSTANTIAL DAMAGES AS A RESULT

OF ANY FAILURE BY BUYER TO COMPLY WITH OR PERFORM BUYER'S OBLIGATIONS UNDER THIS AGREEMENT; THAT IT IS EXTREMELY DIFFICULT AND

IMPRACTICAL TO CALCULATE AND ASCERTAIN AS OF THE EFFECTIVE DATE OF

THIS AGREEMENT THE ACTUAL DAMAGES WHICH WOULD BE SUFFERED IN SUCH EVENT BY SELLER; AND THAT THE DEPOSIT IS A REASONABLE ESTIMATE OF THE

EXTENT TO WHICH SELLER MAY BE DAMAGED BY BUYER'S DEFAULT IN LIGHT

OF THE DIFFICULTY THE PARTIES WOULD HAVE IN DETERMINING SELLER'S ACW~GES AS A RESULT OF SUCH DEF AULT BY BUYER.

SELLER'S INITIALS BUYER'S INITIALS
(c) Waiver of Specific Performance. SELLER HEREBY WAIVES

THE RIGHT TO MAINTAIN AN ACTION FOR SPECIFIC PERFORMANCE OF BUYER'S

OBLIGATION TO PURCHASE THE PROPERTY AND SELLER AGREES THAT SELLER

CAN BE ADEQUATELY COMPENSATED IN MONEY DAMAGES IF BUYER FAILS TO PURCHASE THE PROPERTY IN BREACH OF THIS AGREEMENT. SELLER

ACKNOWLEDGES THAT THE PROVISIONS OF THIS SECTION ARE A MATERIAL PART

OF THE CONS ID ERA TION BEING GIVEN TO BUYER FOR ENTERING INTO THIS

AGREEMENT AND THAT BUYER WOULD BE UNWILLING TO ENTER INTO THIS AGWNT IN THE ABSENCE OF THE PROVISIONS OF THIS SECTION. if (o.

SELLER'S INITIALS BUYER'S INITIALS

9.7.1 Record the Grant Deed;

9.7.2 Cause the Title Company to issue the Title Policy to Buyer;

9.7.3 To the extent not otherwise delivered to Buyer outside of escrow, deliver to Buyer: (a) a conformed copy (showing all recording information thereon) of the Grant Deed; (b) fully executed original counterparts of the Bill of Sale, the General Assignment; and (c) the Seller's Certificate, the Service Contracts referred to in Section 9.3.6, the Non-foreign Certification;

9.7.4 Deliver the Purchase Price (as adjusted pursuant to Section 9.8) to Seller;

9.7.5 Deliver or mail Tenant Notice Letter to tenants for each Lease.

Escrow Holder shall prepare and sign closing statements showing all receipts and disbursements and deliver copies to Buyer and Seller and, if applicable, shall file with the Internal 17 55852.0 I 006\42962433.6
142
EXPRESSLY SURVIVE. IT IS EXPRESSLY UNDERSTOOD AND AGREED BY BUYER AND SELLER:· THAT SELLER WILL INCUR SUBSTANTIAL DAMAGES AS A RESULT

OF ANY FAILURE BY BUYER TO COMPLY WITH OR PERFORM BUYER'S OBLIGATIONS UNDER THIS AGREEMENT; THAT IT IS EXTREMELY DIFFICULT AND

IMPRACTICAL TO CALCULATE AND ASCERTAIN AS OF THE EFFECTIVE DATE OF

THIS AGREEMENT THE ACTUAL DAMAGES WHICH WOULD BE SUFFERED IN SUCH EVENT BY SELLER; AND THAT THE DEPOSIT IS A REASONABLE ESTIMATE OF THE

EXTENT TO WHICH SELLER MAY BE DAMAGED BY BUYER'S DEFAULT IN LIGHT

OF THE DIFFICULTY THE PARTIES WOULD HAVE IN DETERMINING SELLER'S ACTUAL DAMAGES AS A RESULT OF SUCH DEFAULT BY BUYER.

SELLER'S INITIALS BUYER'S iNITIALS
(c) Waiver of Specific Performance. SELLER HEREBY WAIVES

THE RIGHT TO MAINTAIN AN ACTION FOR SPECIFIC PERFORMANCE OF BUYER'S

OBLIGATION TO PURCHASE THE PROPERTY AND SELLER AGREES THAT SELLER

CAN BE ADEQUATELY COMPENSATED IN MONEY DAMAGES IF BUYER FAILS TO PURCHASE THE PROPERTY IN BREACH OF THIS AGREEMENT. SELLER

ACKNOWLEDGES THAT THE PROVISIONS OF THIS SECTION AREA MATERIAL PART

OF THE CONSIDERATION BEING GNEN TO BUYER FOR ENTERING INTO THIS

AGREEMENT AND THAT BUYER WOULD BE UNWILLING TO ENTER INTO THIS AGREEMENT IN THE ABSENCE OF THE PROVISIONS OF THIS SECTION. );;J...~\..,

SELLER'S INITIALS BUYER'S INITIALS

9.7.1 Record the Grant Deed;

9.7.2 Cause the Title Company to issue the Title Policy to Buyer;

9.7 .3 To the extent not otherwise delivered to Buyer outside of escrow, deliver to Buyer: (a) a conformed copy (showing all recording infonnation thereon) of the Grant Deed; (b) fully executed original counterparts of the Bi lI of Sale, the General Assignment; and ( c) the Seller's Certificate, the Service Contracts referred to in Section 9.3.6, the Non-foreign Certification;

9.7.4 Deliver the Purchase Price (as adjusted pursuant to Section 9.8) to Seller;

9.7,5 Deliver or mail Tenant Notice Letter to tenants for each Lease.

Escrow Holder shall prepare and sign closing statements showing all receipts and disbursements and deliver copies to Buyer and Seller and, if applicable, shall file with the Internal 17 55852:01006142%2433.6
r ,! ---·-,1 1 r 'f-""'ITITT' ,
1 l~l'l"~"'Fl"-~~~> ~·AW•lftlMMirHll•Al,,.;i~-- -~-"Jl',,Tl-~~, Olllfl'!F+il""'"'!;lfl fAf TJ"TTT"llr'7F"~·-·:.1&14ifH_,Mlillt--iiiij!•F·-·•i-r1~-,-•• ........ WM-WI ----·-• iiil--Fr,1·1 143
Docusign Envelope ID: 0BE25B51-B03A-4B1 D-848B-09EBCC6C600D Revenue Service (with copies to Buyer and Seller) the reporting statement required under Section 6045(e) of the Internal Revenue Code.

SELLER INITIALS

Upon recordation of the Grant Deed, Buyer will request cancellation of the real property taxes for the Property pursuant to California Revenue and Taxation Code Section 4986. If current taxes have not yet been paid as of the Closing Date, then at Closing Seller shall pay through Escrow or out of Seller's proceeds, the full amount of the installment applicable for the period in which Closing occurs. Seller shall be entitled to a refund of any excess payment made to the taxing authority on account of the Property, including any taxes paid by Seller and applicable to any period from and after the Closing Date. The taxing authority will notify Seller of any refund due Seller resulting from the subject acquisition after a review and any subsequent proration of the property tax assessment by the county assessor. Seller retains the right, following close of escrow, to apply to the appropriate governmental authority/ies for refund of real property taxes pursuant to Revenue and Taxation Code Section 5096. 7 ( or such other applicable law), and Buyer shall reasonably cooperate with Seller's efforts to obtain said refund. 18 55852.01006\42962433.6
144
Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D

9.9 Possession. Seller shall deliver exclusive right of possession of the Property to Buyer on the Closing Date, subject only to the Conditions of Title.

ARTICLE 10. DAMAGE, DESTRUCTION AND CONDEMNATION.

This Agreement shall be governed by the Uniform Vendor and Purchaser Risk Act as set forth in Section 1662 of the California Civil Code as supplemented and modified by this Article 10. Seller shall promptly notify Buyer in writing of any material damage to the Property and of any taking or threatened taking of all or any portion of the Property. Within a reasonable period of time after receipt of such notice, Buyer shall determine whether a material part of the Property has been damaged or whether such taking or threatened taking has affected or will affect a material part of the Property. As used herein, (a) the destruction of a "material part" of the Property shall be deemed to mean an insured or uninsured casualty to the Property having an estimated cost of repair which in the reasonable judgment of Buyer equals or exceeds $200,000 and (b) a taking by eminent domain of a portion of the Property shall be deemed to affect a "material part" of the Property ifin the reasonable judgment of Buyer the estimated value of the portion of the Property taken exceeds $200,000. Upon making its determination, Buyer shall notify Seller in writing of the results of such determination. Buyer may elect, by written notice delivered to Seller within 30 days after giving Seller notice of such determination, to terminate this Agreement in accordance with Section 9.6.1 if a material part of the Property has been damaged or if such taking has affected or will affect a material part of the Property. If Buyer does not so terminate, (i) in the case of damage to a material part of the Property, Seller shall assign to Buyer at the Closing its right to recover under any insurance policies covering such damage and shall pay Buyer at the Closing the amount of the deductible, if any, and (ii) in the case of a threatened or actual taking of a material part of the Property, Seller shall assign to Buyer at the Closing Seller's entire right, title and interest in the proceeds thereof. If between the Effective Date and the Closing Date the Property suffers damage which is not material, Seller shall repair such damage at its expense prior to the Closing, and the Closing Date shall be extended for a reasonable period of time not to exceed 30 days to allow for completion of such repairs. The Closing Date shall be extended as necessary to permit Buyer to exercise its rights under this Article

10. ARTICLE 11. GENERAL.

11.1 Notices. All notices, demands, approvals, and other communications provided for in this Agreement shall be in writing and shall be effective (a) when personally delivered to the recipient at the recipient's address set forth below; (b) five business days after deposit in a sealed envelope in the United States mail, postage prepaid, by registered or certified mail, return receipt requested, addressed to the recipient as set forth below; or ( c) one business day after deposit with a recognized overnight courier or delivery service, addressed to the recipient as set forth below, whichever is earlier. If the date on which any notice to be given hereunder falls on a Saturday, Sunday or legal holiday, then such date shall automatically be extended to the next business day immediately following such Saturday, Sunday or legal holiday. Email notices may be used for 19 55852.0 I 006\42962433.6
145
Docusign Envelope ID: 0BE25B51-B03A-4B10-848B-09EBCC6C600O convenience only, unless otherwise agreed by the parties in writing, and shall be deemed delivered one ( 1) business day after delivery if sent after 5 pm, or received the same day if sent on a business day between 8 am and 5 pm, and a duplicate shall be sent via USPS on the same day as the email.

The addresses for notice are:

SELLER:

With a copy to:

BUYER:

With a copy to:

PHILIP E. BURKHARDT, Trustee
7042 Palomino Drive
Sanger, CA, 92657
Phone: (704) 245-2690
Email: [email protected]
Casey Estate & Business Planning,
a Professional Law Corporation.

Attn Wayne J. Casey
610 Newport Center Drive, Suite 840
Newport Beach, CA 92660
Phone: (949) 640-5200
Email: [email protected]

CITY OF LAGUNA BEACH
Attn: Jeremy Frimond
505 Forest Ave.

11.3 Joint and Several Liability of Seller. The obligations, representations, warranties, and covenants of Seller under this Agreement shall be the joint and several obligations of each individual or entity comprising Seller. Each such individual or entity shall be fully responsible for 20 55852.01006\42962433.6
146
Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D the full performance of all obligations under this Agreement, regardless of the performance or default of any other individual or entity comprising Seller. Buyer may, at its sole discretion, seek recourse, enforcement, or remedy against any one or more of such individuals or entities without seeking recourse against the others, and no such action shall release any other individual or entity comprising Seller from their obligations under this Agreement.

11.8 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California applicable to contracts made and to be performed in California.

11.9 Confidentiality and Publicity. Buyer is a public entity and as such, this Agreement, upon its presentation for approval at Buyer's City council at a duly called and agendized public meeting, shall be subject to the Public Records Act and the Freedom of Information Act. No press release or other public disclosure may be made by Seller or any of its agents regarding Buyer's intent for this Property this transaction without the prior consent of Buyer. 21 55852.01006\42962433.6
147
Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D

11.10 Time. Time is of the essence in the performance of the parties' respective obligations under this Agreement.

I 1. 15 No Third Party Beneficiaries. Nothing in this Agreement, express or implied, is intended to confer any rights or remedies under or by reason of this Agreement on any person other than the parties to it and their respective permitted successors and assigns, nor is anything in this Agreement intended to relieve or discharge any obligation of any third person to any party hereto or give any third person any right of subrogation or action over against any party to this Agreement.

11.16 Remedies Cumulative. The remedies set forth in this Agreement are cumulative and not exclusive to any other legal or equitable remedy available to a party.

11.17 Commissions, Indemnity, Disclosure. Each party represents to the other party that there is no broker representing such party in the current transaction, and that the representing party has incurred no liability for any brokerage commission or finder's fee arising from or relating to the transactions contemplated by this Agreement. Seller shall be responsible for any broker 22 55852.01006\42962433.6
148
commission associated with this purchase. Each party hereby indemnifies and agrees to protect, defend and hold harmless the other party from and against all liability, cost, damage or expense (including without limitation attorneys' fees and costs incurred in connection therewith) on account of any brokerage commission or finder's fee which the indemnifying party has agreed to pay or which is claimed to be due as a result of the actions of the indemnifying party. This Section

11.17 is intended to be solely for the benefit of the parties hereto and is not intended to benefit, nor may it be relied upon by, any person or entity not a party to this Agreement.

11.18 Counterparts/Facsimile/PDF Signatures. This Agreement may be executed in counterparts and when so executed by the parties, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument that shall be binding upon the parties, notwithstanding that the parties may not be signatories to the same counterprut or counterparts. The parties may integrate their respective counterparts by attaching the signature pages of each separate counterpart to a single counterpart. In order to expedite the transaction contemplated herein, facsimile or .pdf signatures may be used in place of original signatures on this Agreement. Seller and Buyer intend to be bound by the signatures on the facsimile or .pdf document, are aware that the other party will rely on the facsimile or .pdf signatures, and hereby waive any defenses to the enforcement of the terms of this Agreement based on the form of signature.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date.

BUYER:

ATTEST:

B
APPROVED AS TO FORM:

BEST BEST &KRIEGER LLP
By:Megan
City Attorney
55852.01006\42962433.6
City of Laguna Beach,
a California municipal corporation
By~~
Name: b~l A. \L..\(;
Title: ½ m'>:Ntfr
23 149
Docusign Envelope ID: 0BE25851-B03A-481 D-848B-09EBCC6C600D SELLER SIGNATURE PAGE TO PURCHASE AND SALE AGREEMENT - 2535 LAGUNA

CANYON ROAD
55852.0 I 006\42962433.6
SELLER:

Trust A under the Burkhardt Family Trust
established December 6, 1988
(?Signed by:

By __ __,.,L-~-~=3s=ao=~=2~=oc=ao=4o~s.- .. - ......... ------- Name: PHILIP E. BURKHARDT
Title: Trustee
24 150
Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D Acceptance by Escrow Holder
Escrow Holder acknowledges receipt of the foregoing Agreement and accepts the instru9\ons contained therein.

Date(11U wiaJI, 2oa'i
25 55852.0 I 006\42962433.6
151
Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D

EXHIBIT A

LAND DESCRIPTION
Real property in the City of Laguna Beach, County of Orange, State of California, described as follows:

Parcel 1:

That portion of Lot 2 in Section 13, Township 7 South, Range 9 West, of the San Bernardino Meridian, in the County of Orange, State of California, according to an Official Plat of said land filed in the District Land Office, August 13, 1875, described as follows:

Beginning at station 453+00.85 on the center line of Laguna Canyon Road as shown on a map thereof approved by Nat Neff, Superintendent of Highways of Orange County on November 4, 1929, said point also being the Northwest corner of the land described in the Deed to Arch Craig; thence Westerly 461.00 feet along said center line; thence continuing along said center line South 76° 38' 15" West 52.95 feet to the true Point of Beginning; then continuing along said center line South 76° 38' 15" West 35.31 feet; thence Southwesterly 81.99 feet along said center line; thence Southeasterly to a point on the Southeasterly line of the land conveyed to B.W. Morton, et. ux., by Deed recorded in Book 717, Page 407, Official Records, said point being North 76° 38' 15" East 97.68 feet from the Southwesterly corner of said Morton land; thence North 76° 38' 15" East 97.68 feet to the Southeasterly corner of said Morton land; thence North 13° 21' 25" West 207.56 feet to the true Point of Beginning.

Parcel 2:

Beginning at the Southwest corner of the land described in the Deed to Glenn R. Carlton, et. ux, recorded January 23, 1948, in Book 1612, Page 424, Official Records; thence Southeasterly 150.00 feet along the Southeasterly prolongation of the Westerly line of the land described in said deed; thence Easterly to the Southwesterly corner of the !and conveyed to W. L. Craig, et. ux., by Deed recorded in Book 1532, Page 157, Official Records; thence North 13° 21' 45" West 150.00 feet to the Northwesterly corner of said land of Craig; Thence South 76° 38' 15" West to the Point of Beginning.

APN: 632-091-12
Exhibit "A"
55852.01006\42962433.6
152
Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D.

EXHIBIT B

PERSONAL PROPERTY INVENTORY
Exhibit "B"
55852.01006\42962433.6
153
Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D

EXHIBITC

TRANSFEROR'S CERTIFICATION OF NON-FOREIGN STATUS
Section 1445 of the Internal Revenue Code of 1986, as amended (the "Code"), provides that a transferee of a U.S. real property interest must withhold tax if the transferor is a foreign person. To inform the CITY OF LAGUNA BEACH, a California municipal corporation (the "Transferee"), that withholding of tax under Section 1445 of the Code will not be required upon the transfer of a U.S. real property interest to the Transferee by PHILIP E. BURKHARDT, Trustee of Trust A under the Burkhardt Family Trust established December 6, 1988, as to an undivided fifty percent (50%) interest (the "Transferor"), the undersigned hereby certifies the following on behalf of the Transferor:
l. The Transferor is not a foreign corporation, foreign partnership, foreign trust or foreign estate (as those terms are defined in the Code and the Income Tax Regulations promulgated thereunder);

2. The Transferor's U.S. employer identification number is 99-6462945; and

3. The Transferor's office address is 7042 Palomino Drive, Sanger, CA 92657.

DATED: ,20_ -------
55852.0 I 006\42962433.6
Trust A under the Burkhardt Family Trust
established December 6, 1988
By:-----------------
Name: PHILIP E. BURKHARDT
Title: Trustee
Exhibit "C"
154
Docusign Envelope ID: 0BE25851-B03A-481D-848B-09EBCC6C600D

EXHIBIT D

BILL OF SALE
This Bill of Sale (the "Bill of Sale") is made as of ______ , 20_, by PHILIP E. BURKHARDT, Trustee of Trust A under the Burkhardt Family Trust established December 6, 1988 ("Transferor").

2. Transferor warrants that each item of the Personal Property is in good condition, order and repair and suitable for its intended purpose on the date of this Bill of Sale.

4. This Bill of Sale shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, executors, administrators, successors and assigns.

DATED: -------'----' 20_
TRANSFEROR:

Exhibit "D"
55852.0 I 006\42962433.6
155
Docusign Envelope ID: 0BE25B51-B03A-4B1 D-848B-09EBCC6C600D 55852.01006\42962433.6
Trust A under the Burkhardt Family Trust
established December 6, 1988
By: ------------------
Name: PHILIP E. BURKHARDT
Title: Trustee
2 156
Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D SCHEDULE 1

PERSONAL PROPERTY INVENTORY
All Personal Property existing at the Real Property as of the Closing Date Exhibit "D"
55852.01006\42962433.6
157
Docusign Envelope ID: 0BE25B51-B03A-4B1 D-B48B-09EBCC6C600D

EXHIBITE

GENERAL ASSIGNMENT
This Assignment (the "Assignment") is dated for reference purposes only as of _______ , by PHILIP E. BURKHARDT, Trustee of Trust A under the Burkhardt Family Trust established December 6, 1988 ("Assignor").

FOR VALUABLE CON SID ERA TION, as set forth in that certain Agreement of Purchase and Sale and Joint Escrow Instructions dated ___ , 20_ (the "Agreement"), Assignor hereby assigns and transfers to the CITY OF LAGUNA BEACH, a California municipal corporation ("Assignee"), an undivided fifty percent (50%) interest in the following:

A. All equipment leases, service and/or maintenance agreements and contracts relating to the Real Property (collectively, the "Contracts"), as more particularly described in Schedule 1 attached hereto;
B. All permits, licenses, consents, registrations and other similar approvals applicable to the Real Property (collectively, the "Approvals"), which Approvals are more particularly described in Schedule 2 attached hereto;
C. All as-built plans and specifications for: (1) the Real Property; (2) any and all improvements used in connection with the operation or occupancy of the Real Property or located upon the Real Property (the "Improvements"); and (3) any and all personal property owned by Assignor located within or used in connection with the operation of the Real Property and Improvements (the "Personal Property") (collectively, the "Plans"); and D. All warranties of which Assignor is the beneficiary (the "Warranties") with respect to the Improvements or Personal Property.

This Assignment shall not supersede the Agreement and, in the event of conflict between this Assignment and the Agreement, the Agreement shall control.

This Assignment shall be binding upon and inure to the benefit of Assignor and Assignee and their respective heirs, executors, administrators, successors and assigns.

ASSIGNOR:

Exhibit "E"
55852.01006\42962433.6
158
Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D 55852.0 I 006\42962433.6
Trust A under the Burkhardt Family Trust
established December 6, 1988
By: ------------------
Name: PHILIP E. BURKHARDT
Title: Trustee
Date: --------------
Exhibit "E"
159
Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D 55852.01006142962433.6
SCHEDULE 1
Note to Seller: List all equ;pment leases, servfoe
and/or ma;ntenance agreements and contracts
relating to the Real Property - if none known. delete
th;s schedule and bracketed phrase but leave
general assignment of unspecified contracts.

Leases should have a separate assignment. so do
not assign seller's interest in leases ;n this
document.

Exhibit "E"
160
Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D 55852.0 I 006\42962433.6
SCHEDULE2
Note to Seller: List all permits, licenses, consents,
registrations and other similar approvals
applicable to the Real Property- if none known,
delete this schedule and bracketed phrase but leave
general assignment of unspecified contracts
Exhibit "E"
161
Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D

RECORDING REQUESTED BY

AND WHEN RECORDED MAIL TO
City of Laguna Beach
505 Forest Ave.

Laguna Beach, CA 92561
ATTN: City Clerk

EXEMPT FROM RECORDING FEES PURSUANT
TO GOVERNMENT CODE SECTION 27383
APNs: 632-091-12

EXHIBIT F

GRANT DEED

SPACE ABOVE THIS LINE FOR RECORDER'S USE
Grant Deed
The undersigned Grantor(s) declare(s): City of Laguna Beach is exempt from property taxes Documentary transfer tax is $0.

D Computed on full value of property conveyed, or
D Computed on full value less value of liens and encumbrances remaining at time of sale.

D Unincorporated area l:8J City of Laguna Beach and
FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, PHILIP E. BURKHARDT, Trustee of Trust A under the Burkhardt Family Trust established December 6, 1988,
hereby GRANT(S) to
CITY OF LAGUNA BEACH, a California municipal corporation an undivided fifty percent (50%) interest in the following described real property in the City of Laguna Beach County of Orange
State of California:

SEE A TT ACHED EXHIBIT A
Dated: ______ , 20_
By: [Do not execute, Exhibit only]
Exhibit "F"
55852.0 I 006\42962433.6
162
Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D

STATE OF CALIFORNIA
COUNTY OF _________ _
)
)
On ___ _, 20 before me, ______________ Notary Public,
personally appeared _________________ _, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENAL TY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature:. _________________ _ (seal)
Exhibit "F"
55852.01006\42962433.6
163
Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D

CERTIFICATE OF ACCEPTANCE
Pursuant to Section 27281 of the
California Government Code
This is to certify that the undivided fifty percent (50%) interest in real property conveyed by the Grant Deed dated ________ , 20_, from PHILIP E. BURKHARDT, Trustee of Trust A under the Burkhardt Family Trust established December 6, 1988, to the City of Laguna Beach, a municipal corporation, is hereby accepted by the undersigned officer on behalf of the City of Laguna Beach, pursuant to the authority conferred by Resolution No. ___ , adopted by the City Council of the City of Laguna Beach on _________ , and the Grantee consents to recordation thereof by its duly authorized officer.

Dated: _______ , 20_ CITY OF LAGUNA BEACH,
a California municipal corporation
By-------------
Exhibit "F"
55852.01006\42962433.6
164
Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D

EXHIBIT G

LIST OF LEASES AND SUMMARY OF LEASE TERMS
. Current . Copy of
Property Umt Use R OM) Tenant Listed SF L ent ( ease
2535 A Flex 1,855 Mark Garry NIA Unsigned
Stephanie Missing 2535 B Flex 1.855 Bachiero I Peter NIA Pages 4-7 Blake Gallery Martin Brooks Maybe
2535 C123 Flex 3,175 Cabinetry NIA missing
page4
2535 C4 Flex 765 Katlin Evans NIA Yes
2535 C5 Flex 630 Mark Garry NIA No
2535 C6 Flex 250 Brady Norton NIA No
1+1.5
(plus (prior
2535 D sublease 2,950 Jorg Dubin rent No
residenti
al studio)
Robert Taylor Missing 2535 E1 Flex 925 Welder on NIA
.VVheels page 2
Gunther Gee Missing E2 Flex 885 Management Pro NIA
Tern page2
E3 Flex 885 Van derVeen
NIA Yes Family
2535 E4 Flex 850 Jennifer King NIA Yes Justin Bower
Clayton Dubin
2535 E5 1+1 2,150 (Amanda Hunter NIA Yes
also on estoppel)
2535 E6 1+1
2535 E7 1+1 1,775: Ron Tober NIA Unsigned
Exhibit "G"
55852.01006\42962433.6
165
Docusign Envelope ID: 0BE25851-B03A-481 D-848B-09EBCC6C600D

EXHIBITH

ASSIGNMENT OF LEASES

ASSIGNMENT AND ASSUMPTION OF LEASES
This ASSIGNMENT OF LEASES (the "Assignment"), dated _____ , __ (the "Assignment Date"), is by and between ("Assignor"),
_____________ ("Assignee").

B. Concurrently herewith, Assignee has acquired the Property from Assignor.

3. Effective Date. This Assignment shall be conditioned and effective upon the conveyance to Assignee of record fee title to the Property (the "Effective Date").

Exhibit "G"
55852.0 I 006\42962433.6
166
Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D

4. Binding on Successors. This Assignment shall be binding on and shall inure to the benefit of the parties hereto, their heirs, executors, administrators, successors in interest and assigns.

IN WITNESS WHEREOF, the parties hereto have signed this Assignment as set forth below.
55852.0 I 006\42962433.6

ASSIGNOR
Trust A under the Burkhardt Family Trust established
December 6, 1988
By: ------------------
Name: PHILIP E. BURKHARDT
Title: Trustee

ASSIGNEE
By: ___ ==-~==-
Name: --------- 1 ts:

Exhibit "H"
167
Docusign Envelope ID: 0BE25B51-B03A-481D-848B-09EBCC6C600D 55852.01006\42962433.6

EXHIBIT I TO ASSIGNMENT OF LEASES

LEASES TO BE ASSIGNED
Exhibit "H"
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PURCHASE AND SALE AGREEMENT

AND JOINT ESCROW INSTRUCTIONS
This Purchase and Sale Agreement and Joint Escrow Instructions (this "Agreement") is made as of January 112, 2025 (the "Effective Date"), between PHILIP E. BURKHARDT, Trustee of Trust C under the Burkhardt Family Trust established December 6, 1988 ("Seller"), and CITY OF LAGUNA BEACH, a California municipal corporation ("Buyer").

ARTICLE 1. AGREEMENT OF SALE.

Subject to and on the terms and conditions of this Agreement, Seller shall sell to Buyer and Buyer shall purchase from Seller an undivided fifty percent (50%) interest in all of the following:

1.2 Improvements. Any and all structures, systems, facilities, fixtures, fences, landscaping, and parking areas located on the Land and any and all machinery, equipment, apparatus and appliances used in connection with the operation or occupancy of the Land (such as heating and air conditioning systems and facilities used to provide utility services, refrigeration, ventilation, garbage disposal or other amenities on the Land) and other improvements located upon the Land, including, but not limited to, an industrial office building improvements ( collectively, the "Improvements"
The Land and the Improvements are sometimes collectively referred to in this Agreement as the "Property"

1.4 Service Contracts. Those Service Contracts (defined in Section 5.7) which Buyer expressly agrees to assume;

1.5 Leases. All of the landlord's interest in and to the Leases (the "Leases") between Seller, as Landlord, and the tenants ("Tenants") in occupancy under the Leases referenced in Section 5.7, below and set forth on Exhibit G; and
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1.6 Other Assets. To the extent owned by Seller, all tangible and intangible assets of any nature relating to the Property or the Personal Property, including without limitation (a) all warranties upon the Improvements or Personal Property, to the full extent such warranties are assignable, (b) copies of all plans, specifications, engineering drawings and prints relating to the construction of the Improvements, ( c) all license agreements, copyrights, logos, designs, trademarks, trade names, service marks and all goodwill associated with the Property, (d) all other intellectual or intangible property used by Seller in connection with the Property; and (e) all claims and causes of action arising out of or in connection with the Property.

ARTICLE 2. PURCHASE PRICE.

2.1 Amount; Contingencies. The purchase price (the "Purchase Price") for an undivided fifty percent (50%) interest in the Property shall be $2,475,000.00. Seller acknowledges and agrees that Buyer is not requesting a financing or appraisal contingency in contemplation of the Purchase Price, however, Buyer may, in its sole discretion, engage with an appraiser to evaluate the value of the Property during the Due Diligence Period (as defined in Section 3.1.1). The parties further acknowledge and agree that the Purchase Price is predicated on the assumption that no adverse environmental conditions exist on the Property. Should Buyer determine, in its reasonable discretion, that adverse environmental conditions are present on the Property during its Due Diligence Investigation (as defined below in Section 3.1.2), the parties shall, prior to expiration of the Due Diligence Period, negotiate in good faith, the manner in which such conditions shall be remedied and the Due Diligence Period shall be tolled for the duration of such negotiations.

2.2 Deposit/Purchase Price.

2.2.3 The Deposit and Purchase Price shall be made by wire transfer of federal funds, cashier's check or in another immediately available form. Notwithstanding anything herein to the contrary, One Hundred Dollars ($ I 00.00) of the Initial Deposit (the "Independent Consideration") shall not be refundable to Buyer, but shall represent consideration for this Agreement and shall be paid to Seller. The Independent Consideration shall be paid to Seller 2 55852.0 I 006\43065208.4
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Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D within 3 days of the Effective Date. The Independent Consideration shall serve as consideration for the granting of the time periods herein contained for Buyer to exercise Buyer's right to satisfy and approve all of Buyer's conditions herein contained. If the Deposit is refunded to Buyer for any reason pursuant to this Agreement, the Independent Consideration shall be subtracted from the Deposit pursuant to this Section.

ARTICLE 3. DUE DILIGENCE.

3.1 Due Diligence Period; Inspection and Access.
3 .1.1 Due Diligence Period. The "Due Diligence Period" means the period beginning on the Effective Date and ending at 5 :00 p.m. on February 21, 2025, provided, however, in the event the Preliminary Documents and the Lease Documentation (defined below) are not delivered on or before the Seller Document Deadline (defined below), the Due Diligence Period and the Closing Date shall be automatically extended one (1) day for each day beyond the Seller Document Deadline that the Preliminary Documents and the Lease Documentation are not delivered to Buyer by Seller.
3 .1.2 Access to Information and the Property. Buyer shall conduct its investigation of the Property during the Due Diligence Period at no cost to Seller. This investigation ("Due Diligence Investigation") may include, at Buyer's option: a physical inspection of the Land and all Improvements thereon, including soil, geological and other tests, engineering evaluations of the mechanical, electrical, HV AC and other systems in the Improvements and review of the Plans; review of all governmental matters affecting the Property, including zoning, environmental and building permit and occupancy matters; review and verification of all financial and other information previously provided by Seller relating to the operation of the Property; review of the condition of title to the Property, including the building, structural system and roof inspection; and review of such other matters pertaining to an investment in the Property as Buyer deems advisable. In addition to the Preliminary Documents delivered to Buyer pursuant to Section 3.2, Buyer and its representatives shall have the right of access during reasonable business hours to all files, books and records maintained by Seller or its agents (including, without limitation, all of the Additional Documents to be made available to Buyer at the Property pursuant to Section 3.3), wherever located, relating to the Property, including the right to copy the same. Buyer and its representatives shall also have the right of access to the Property during reasonable business hours to conduct its investigation of the physical condition of the Property. Seller agrees that the rights granted to Buyer herein and the results of its Due Diligence Investigation shall not relieve Seller of any obligations Seller may have under any other provisions of this Agreement, or under other documents entered into concurrently herewith, or implied by law, nor shall they constitute a waiver by Buyer of the right to enforce any of the same. Seller shall cooperate with Buyer in its due diligence activities and provide access to the Property, its records, or provide information so long as it is within Seller's control. 3 55852. 0 I 006\43065208.4
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3.2 Delivery of Preliminary Documents. Within five (5) business days after the Effective Date ("Seller Document Deadline"), if Seller hasn't previously provided such documents prior to the Effective Date, Seller shall deliver to Buyer, at Seller's expense, all of the documents described in the remaining subsections of this Section 3.2 (collectively, the "Preliminary Documents") in Seller's possession or control. 3 .2.1 Title Report and Survey. A preliminary title report or commitment for title insurance (the "Preliminary Title Report"), dated no earlier than 10 days before the Effective Date, covering the Property and issued by a title insurance company or companies acceptable to Buyer (the "Title Company"), together with a legible copy of each document, map and survey referred to in the Preliminary Title Report. Buyer, at Buyer's sole cost, may obtain an as-built survey of the Property (the "Survey") prepared by a certified land surveyor in accordance with the most recent American Land Title Association standards, certified by such surveyor to Buyer and the Title Company in a form acceptable to the Title Company for the purpose of deleting any survey exception from the Title Policy described in Section 4.1.3. 3 .2.2 Plans. Copies of all as-built plans and specifications for the Improvements, including without limitation the plans and specifications for and a complete description of all existing renovations and improvements to the Property and all rentable space therein, and as-built drawings for all underground utilities (collectively, the "Plans"), together with a certificate from an architect approved by Buyer certifying to Buyer that the Improvements were constructed and completed in accordance with the Plans;

3.2.6 Licenses, Etc. Copies of any licenses, permits or certificates required by governmental authorities in connection with construction or occupancy of the Improvements, including, without limitation, building permits, certificates of completion, certificates of occupancy and environmental permits and licenses;
3 .2. 7 Lease Documentation. Fully executed copies of all of the Leases set forth on Exhibit G, including, without limitation, new Leases or Lease amendments for such leases for which an original is either lost, incomplete, unsigned, or otherwise unavailable, along with duly executed estoppel certificates on a form reasonably acceptable to Buyer disclosing no defaults or 4 55852.01006\43065208.4
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Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D alleged defaults by either Seller or the Tenant under such Lease or any Tenant bankruptcy, or any dispute between Seller and a Tenant (the "Preliminary Estoppels"), the Leases and the Preliminary Estoppels shall be referred to herein as the "Lease Documentation"); and

If no such documents exist, Seller shall furnish its certification to that effect;

3.3.3 Insurance Policies. Copies of certificates evidencing the insurance carried by Seller of the Property;

3.3.5 Requested Information. Such other documents and information concerning the Property as Buyer may reasonably request.

3.4 Approval/Disapproval of Due Diligence Investigations. Buyer shall approve or disapprove the results of Buyer's Due Diligence Investigation, in the exercise of Buyer's sole discretion, by written notice delivered to Seller no later than the expiration of the Due Diligence Period. Buyer's disapproval shall terminate this Agreement unless, at the time Buyer gives notice of its disapproval, Buyer also notifies Seller of Buyer's desire to enter into negotiations with Seller for the purpose of reaching an accommodation concerning the disapproval. If Buyer so notifies Seller and the parties have not reached a written agreement satisfactory to both of them regarding 5 55852.0 I 006\43065208.4
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Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D the disapproval within 10 days after the date of the disapproval notice, Buyer, at its option, may either (a) elect to terminate this Agreement by so notifying Seller and recover the Deposit, or (b) elect to proceed with the transactions contemplated by this Agreement notwithstanding its earlier disapproval. If Buyer fails to deliver to Seller notice of its approval or disapproval of the results of its Due Diligence Investigation, Buyer shall be deemed to have disapproved such results. If Buyer elects to terminate the Agreement, Buyer shall return to Seller all of the Preliminary Documents and Additional Documents previously delivered by Seller to Buyer within 5 business days of such termination, and Escrow shall immediately refund Buyer the Deposit, and Buyer shall have no further obligations to Seller.

3.5 Title Review.

3.5.3 Buyer's Options. If any Disapproved Title Matters (including the Monetary Liens) have not been removed at least 5 days prior to Closing or provision for their removal at the Closing has not been made to Buyer's satisfaction, Buyer may, at its option: (i) close the purchase of the Property and take title subject to the Disapproved Title Matters which have not been removed; (ii) close the purchase of the Property and cure or remove the Disapproved Title Matters which have not been removed. Buyer may credit the costs of such cure or removal against the Purchase Price by reducing the amount of cash payable by Buyer at the Closing, but only to the extent such costs are expended to remove (A) Monetary Liens referred to in Section 3.5.1 or (B) Disapproved Title Matters which Seller agreed to remove; or (iii) terminate this Agreement in accordance with Section 9.6.1.
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ARTICLE 4. CONDITIONS PRECEDENT.

4.1.1 Due Diligence. Buyer having approved of the results of its Due Diligence Investigation pursuant to Section 3 .4;

4.1.2 Title Review. Buyer having approved of the results of its review of title pursuant to Section 3.5.

4.1.3 Title Policy. Seller having caused the Title Company to deliver to Buyer (a) a CLTA Owner's policy ohitle insurance, provided that Buyer may require an ALTA Owner's Policy if Buyer pays the incremental premium for ALT A coverage ("Title Policy") ( or at Buyer's election a binder therefor) for the Property, or (b) the Title Company's irrevocable commitment to issue such policy ohitle insurance, (including such coinsurance, reinsurance and endorsements as Buyer shall require), with liability equal to the Purchase Price showing fee title to the Property vested in Buyer and subject only to: (i) the matters and exceptions which were approved by Buyer pursuant to Section 3 .5; and (ii) the standard printed exceptions in the form of title policy called for ( collectively, "Conditions of Title").

4.1.5 Representations and Warranties. The representations and warranties of Seller set forth in Article 5 being true and accurate on the Closing Date, as if made on such date.

4.1.8 Condition of Property. The non-occurrence of any material adverse change to the physical status of the Property between the end of the Due Diligence Period and Closing.

4.1.9 Possession of FF&E's. Buyer obtaining legal possession of all furniture, fixtures, and equipment integral to the operation of the Property, and otherwise owned by Seller. 7 55852.01006\43065208 .4
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4.1.11 Closing Estoppel Certificates. Seller shall have delivered or caused to be delivered the Closing Estoppel Certificates in accordance with Section 9.3.5.

4.2.1 Covenants. Buyer performing and complying in all material respects with all of the terms of this Agreement to be performed and complied with by Buyer prior to or at the Closing.

4.2.2 Representations and Warranties. The representations of Buyer set forth in Article 6 being true and accurate on the Closing Date, as if made on such date.

ARTICLE 5. SELLER'S REPRESENTATIONS AND WARRANTIES.

5. I Defects. The Improvements and the Personal Property are in good condition and repair and are free of any latent or patent design, construction, physical or mechanical defects and there is no actual or threatened settlement, earth movement, termite infestation or damage affecting the Property.

5.3 Documents. All of the Preliminary Documents and the Additional Documents which have been delivered or made available to Buyer pursuant to Article 3, and all other documents delivered to Buyer by or on behalf of Seller (a) are true, correct and complete copies of what they purport to be, (b) represent truly the factual matters stated therein, (c) are in full force and effect, (d) have not been modified, except as set forth therein and (e) do not omit any information required to make the submission thereof accurate and complete in all material respects. 8 55852.0 I 006\43065208.4
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5.6 Licenses. Seller has all required licenses, permits (including, without limitation, all building permits and occupancy permits), easements and rights-of-way which are required in order to continue the present use of the Property. Seller has no knowledge of any law or regulation of any governmental authority having jurisdiction which might require the Property to be improved beyond its present state or which might restrict the use and enjoyment of the Property in the manner it is presently being used and enjoyed.

5.7 Contracts/Leases/Occupancy Rights.

5. 7 .2 There are no leases, rental agreements or other claims to possession effecting possession or occupancy of the Property other than the Leases set forth in Exhibit G hereto, and Seller shall not enter into any new leases or renewals and/or modifications of the existing Leases during the term of this Agreement except with the prior written consent of Buyer, which may be withheld in Buyer's reasonable discretion. Seller is not in default under any of the Leases, and all of the Leases are valid, binding, and enforceable in accordance with their respective terms.

5.8 Litigation. There are no actions, suits, proceedings, judgments, orders, decrees or governmental investigations pending or threatened against the Property or Seller which could affect the Property or the purchase, use or enjoyment thereof by Buyer. 9 55852.0 l 006\43065208.4
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5.10 Hazardous Materials.

5.10.1 Definitions. For purposes of this Agreement:
(a) "Environmental Law(s)" means the Comprehensive
Environmental Response, Compensation, and Liability Act of 1980, 42 U .S.C. Sections 9601, et ~-, the Resource Conservation and Recovery Act of 1976, 42 U.S.C. Sections 6901 et seq., the Toxic Substances Control Act, 15 U.S.C. Sections 2601 et. seq., the Hazardous Materials Transportation Act, 49 U.S.C. 1801 et gm., the Clean Water Act, 33 U.S.C. Sections 1251 et seq., The Safe Drinking Water and Toxic Enforcement Act of 1986 (Cal. H&S Code Sections 25249 .5- 25249.13), the Carpenter-Preseley-Tanner Hazardous Substance Account Act (Cal. H&S Code Sections 25300 et seq.), and the California Water Code Sections 1300, et seq., as said laws have been supplemented or amended to date, the regulations promulgated pursuant to said laws and any other federal, state or local law, statute, rule, regulation or ordinance which regulates or proscribes the use, storage, disposal, presence, cleanup, transportation or Release or threatened Release into the environment of Hazardous Material.
(b) "Hazardous Material" means any substance which is (i) designated, defined, classified or regulated as a hazardous substance, hazardous material, hazardous waste, pollutant or contaminant under any Environmental Law, as currently in effect or as hereafter amended or enacted, (ii) a petroleum hydrocarbon, including crude oil or any fraction thereof and all petroleum products, (iii) PCBs, (iv) lead, (v) asbestos, (vi) flammable explosives, (vii) infectious materials or (viii) radioactive materials. (c) "Release" means any spilling, leaking, pumping, pouring, emitting, discharging, injecting, escaping, leaching, dumping or disposing into the environment of any Hazardous Material (including the abandonment or discarding of barrels, containers, and other receptacles containing any Hazardous Material).

5.10.2 Representations.
(a) The Property and all existing uses and conditions of the Property are in compliance with all Environmental Laws, and Seller has not received any written notice of violation issued pursuant to any Environmental Law with respect to the Property or any use or condition thereof.
(b) Neither Seller nor any other present or former owner of the Property has used, handled, stored, transported, released or disposed of any Hazardous Material on, under or from the Property in violation of any Environmental Law. ( c) There is no Release of any Hazardous Material existing on, beneath or from or in the surface or ground water associated with the Property. 10 55852.0 I 006\43065208.4
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Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D (d) All required permits, licenses and other authorizations required by or issued pursuant to any Environmental Law for the ownership or operation of the Property by Seller have been obtained and are presently maintained in full force and effect. (e) There exists no writ, injunction, decree, order or judgment outstanding, nor any lawsuit, claim, proceeding, citation, directive, summons or investigation pending or, to Seller's knowledge, threatened pursuant to any Environmental Law relating to (i) the ownership, occupancy or use of any portion of the Property by Seller or occupant or user of any portion of the Property or any former owner of any portion of the Property, (ii) any alleged violation of any Environmental Law by Seller or occupant or user of any portion of the Property or any former owner of any portion of the Property or (iii) the suspected presence, Release or threatened Release of any Hazardous Material on, under, in or from any portion of the Property. (f) There are no above-ground or underground tanks located on the Property used or formerly used for the purpose of storing any Hazardous Material. (g) No asbestos abatement or remediation work has been performed on the Property.
(h) There is no PCB-containing equipment or PCB-containing material located on or in the Property.
5 .11 Title to the Property. Seller has good and marketable title to the Property, subject to the Conditions of Title. There are no outstanding rights of first refusal or first look, options to purchase, rights of reverter, or claim of right relating to the transfer or sale of the Property or any interest therein. To Seller's knowledge, there are no unrecorded or undisclosed documents or other matters which affect title to the Property. No person holding a security interest in the Property or any part thereof has the right to consent or deny consent to the sale of the Property as contemplated herein, and Seller has the right to pay off such person and to remove all such liens as of the Closing Date. Seller has enjoyed the continuous and uninterrupted quiet possession, use and operation of the Property.

5. 12 Seller's Authority. Seller has the requisite power and authority to own and operate the Property and conduct its business where the same is now owned or operated. The execution, delivery and performance of this Agreement by Seller have been duly and validly authorized by all necessary action and proceedings, and no further action or authorization is necessary on the part of Seller ( or its board of directors or shareholders) in order to consummate the transactions contemplated herein. This Agreement and the other documents executed by Seller in connection herewith are legal, valid and binding obligations of Seller, enforceable in accordance with their respective terms. Neither the execution and delivery of this Agreement by Seller, nor performance of any of its obligations hereunder, nor consummation of the transactions contemplated hereby, shall conflict with, result in a breach of, or constitute a default under, the terms and conditions of the organizational documents pursuant to which Seller was organized, or any indenture, mortgage, deed of trust, agreement, undertaking, instrument or document to which Seller or any affiliate thereof is a party or is bound, or any order or regulation of any court, regulatory body, administrative agency or governmental body having jurisdiction over Seller. 11 55852.0 I 006\43065208.4
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Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D 5 .13 Parking. Seller has received no written notice from any governmental agency that the parking spaces on the Property are in violation of law. 5 .14 Zoning. Seller has received no written notice from any governmental agency that the Property is not in compliance with zoning requirements and laws.

5.15 Foreign Person. Seller is not a "foreign person" within the meaning of Section 1445(f) of the Internal Revenue Code.

ARTICLE 6. BUYER'S REPRESENTATIONS AND WARRANTIES.

Buyer makes the following representation and warranties to Seller with the understanding that each such representation and warranty is material and is being relied upon by Seller:

ARTICLE 7. SURVIVAL OF REPRESENTATIONS AND WARRANTIES.
7 .1 Survival of Warranties. Buyer and Seller agree that each representation and warranty, covenant by the respective parties contained herein or made in writing pursuant to this 12 55852. 01006\43065208.4
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Docusign Envelope ID: 0BE25B51-B03A-4B1D-848B-09EBCC6C600D Agreement are intended to and shall be deemed made as of the date of this Agreement or such writing and again at the Closing, shall be deemed to be material, and unless expressly provided to the contrary shall survive the execution and delivery of this Agreement, the Deed and the Closing.

ARTICLE 8. SELLER'S PRECLOSING COVENANTS.

8.2 Insurance. Seller shall maintain or cause to be maintained in full force and effect its present insurance policies for the Property.

8.4 No Transfers. Seller shall not sell, encumber or otherwise transfer any interest in all or any portion of the Property, or agree to do so.

8.6 Maintenance. At its sole cost and expense, Seller shall operate and maintain the Property such that on the Closing Date the Property shall be in at least as good a condition and repair as on the Effective Date, reasonable wear and tear excepted. Without limiting the generality of the foregoing, Seller shall, at a minimum, spend such amounts for repair and maintenance as are consistent with its prior practice. Seller shall promptly advise Buyer of any significant repair or improvement required to keep the Property in such condition. Seller shall not make any material alterations to the Property, or remove any of the Personal Property therefrom, without Buyer's prior consent, unless such Personal Property so removed is simultaneously replaced with new Personal Property of similar quality and utility.
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ARTICLE 9. CLOSING.
9 .1 Time. Provided all conditions set forth in Article 4 have been either satisfied or waived, and to the extent such date has not been extended pursuant to Section 3 .1.1, above, the parties shall close this transaction (the "Closing"), on February 28, 2025 (the "Closing Date"), as such date may be extended by the provisions of Article 10. Notwithstanding the foregoing, Buyer shall have the right to extend the Closing Date to March 28, 2025 by providing written notice on or before the original Closing Date ("Closing Extension Notice") and depositing into Escrow the Extension Deposit in accordance with Section 2.2.4, above.

9.3 Seller's Deposit of Documents and Funds Into Escrow. Seller shall deposit into escrow on or before Closing (unless otherwise set forth herein) the following documents:

9.3.1 A duly executed and acknowledged grant deed, in the form acceptable to Buyer, conveying the Property to Buyer ("Grant Deed") in the form attached as Exhibit F;

9.3.2 A duly executed bill of sale, in the form of Exhibit D, conveying the Personal Property to Buyer free and clear of liens, encumbrances and restrictions ("Bill of Sale");

9.3.4 A duly executed assignment, in the form of Exhibit H, assigning to Buyer all of Seller's interest in and to the Leases (the "Assignment of Leases"); 14 55852.0 I 006\43065208.4
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9.3.8 Seller's Non-foreign Certification;

9.3.9 All records and files relating to the management or operation of the Property, including, without limitation, property tax bills, insurance, and property taxes; and

9.3.11 Form 593;

9.3.12 Notice letter to tenants regarding new owner and addresses for payment of rent payment ("Tenant Notice Letter").

9.4 Deliveries Outside of Escrow. Notwithstanding Section 9.3, Seller and Buyer may elect to deliver the documents described in Section 9 .3 outside of escrow ( other than documents which are to be recorded) by giving Escrow Holder a joint written notice of such election, specifying the documents which will be so delivered outside of escrow. Upon receipt of such notice, Escrow Holder shall have no further obligation concerning such specified documents.

9.5 Buyer's Deposit of Documents and Funds. Buyer shall deposit into escrow:

9.5.2 A duly executed counterpart of the Assignment of Leases; and 15 55852.01006\43065208.4
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9.6 Default, Termination and Remedies.

9.6.1 Buyer's Termination. This Agreement shall automatically terminate without further notice or action by Buyer upon the occurrence of any of the following events, provided that Buyer is not then in material breach of this Agreement: (a) any condition to Closing contained in Section 4.1 has not been satisfied or waived by Buyer by the Closing Date; or (b) Buyer having exercised its right to terminate this Agreement pursuant to Section 3.4 (disapproval of Due Diligence Investigation), Section 3.5 (disapproval of title) or Article 10 (damage or condemnation). In such event, the parties shall have no further obligation to each other except for those obligations that specifically survive the termination of this Agreement. If this Agreement terminates as a result of Seller's material breach of this Agreement, Buyer shall have all remedies it may have hereunder or at law as a result of such occurrence, including the remedy of specific performance.

9.6.3 Release from Escrow. Upon termination of this Agreement pursuant to Section 9.6.1 or 9.6.2, Escrow Holder shall promptly return to Buyer and Seller, respectively, all documents and monies deposited by them into escrow without prejudice to their rights and remedies hereunder.

OF ESCROW BUYER FAILS TO COMPLY WITH OR PERFORM BUYER'S OBLIGATIONS UNDER THIS AGREEMENT AND (EXCEPT AS OTHERWISE PROVIDED IN SECTION 9.6)

DOES NOT CURE SUCH FAILURE WITHIN TEN BUSINESS DAYS AFTER SELLER'S WRITTEN NOTICE OF SUCH FAILURE, THEN SELLER MAY THEREAFTER: (I) TERMINATE THIS AGREEMENT; (II) RECEIVE AND RETAIN THE DEPOSIT AS

AGREEMENT BY REASON OF BUYER'S DEFAULT, BUYER AND SELLER SHALL BE

RELIEVED OF ANY FURTHER OBLIGATION TO EACH OTHER WITH RESPECT TO THIS

AGREEMENT AND THE PROPERTY EXCEPT FOR ANY OBLIGATIONS WHICH 16 55852.0 I 006\43065208.4
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Docusign Envelope ID: 0BE25851-B03A-4810-8488-09EBCC6C600D EXPRESSLY SURVIVE. IT IS EXPRESSLY UNDERSTOOD AND AGREED BY BUYER AND SELLER: THAT SELLER WILL INCUR SUBSTANTIAL DAMAGES AS A RESULT

OF ANY FAILURE BY BUYER TO COMPLY WITH OR PERFORM BUYER'S OBLIGATIONS UNDER THIS AGREEMENT; THAT IT IS EXTREMELY DIFFICULT AND

IMPRACTICAL TO CALCULATE AND ASCERTAIN AS OF THE EFFECTIVE DATE OF

THIS AGREEMENT THE ACTUAL DAMAGES WHICH WOULD BE SUFFERED IN SUCH EVENT BY SELLER; AND THAT THE DEPOSIT IS A REASONABLE ESTIMATE OF THE

EXTENT TO WHICH SELLER MAY BE DAMAGED BY BUYER'S DEFAULT IN LIGHT

OF THE DIFFICULTY THE PARTIES WOULD HAVE IN DETERMINING SELLER'S ACTUW~GES AS A RESULT OF SUCH DEFAULT BY BUYER.

SELLER'S INITIALS BUYER'S INITIALS
(c) Waiver of Specific Performance. SELLER HEREBY WAIVES

THE RIGHT TO MAINTAIN AN ACTION FOR SPECIFIC PERFORMANCE OF BUYER'S

OBLIGATION TO PURCHASE THE PROPERTY AND SELLER AGREES THAT SELLER

CAN BE ADEQUATELY COMP EN SA TED IN MONEY DAMAGES IF BUYER FAILS TO PURCHASE THE PROPERTY IN BREACH OF THIS AGREEMENT. SELLER

ACKNOWLEDGES THAT THE PROVISIONS OF THIS SECTION ARE A MATERIAL PART

OF THE CONSIDERATION BEING GIVEN TO BUYER FOR ENTERING INTO THIS

AGREEMENT AND THAT BUYER WOULD BE UNWILLING TO ENTER INTO THIS AG~cb THE ABSENCE OF THE PROVISIONS OF THIS SECTION.

SELLER'S INITIALS BUYER'S INITIALS

9.7.1 Record the Grant Deed;

9.7.2 Cause the Title Company to issue the Title Policy to Buyer;

9.7.4 Deliver the Purchase Price (as adjusted pursuant to Section 9.8) to Seller;

9.7.5 Deliver or mail Tenant Notice Letter to tenants for each Lease.

Escrow Holder shall prepare and sign closing statements showing all receipts and disbursements and deliver copies to Buyer and Sel !er and, if applicable, shall file with the Internal 17 55852. 0 I 006\43065208.4
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185
EXPRESSLY SURVIVE. IT IS EXPRESSLY UNDERSTOOD AND AGREED BY BUYER AND SELLER: THAT SELLER WILL INCUR SUBSTANTIAL DAMAGES AS A RESULT

OF ANY FAILURE BY BUYER TO COMPLY WITH OR PERFORM BUYER'S OBLIGATIONS UNDER THIS AGREEMENT; THAT IT IS EXTREMELY DIFFICULT AND

IMPRACTICAL TO CALCULATE AND ASCERTAIN AS OF THE EFFECTIVE DATE OF

THIS AGREEMENT THE ACTUAL DAMAGES WHICH WOULD BE SUFFERED IN SUCH EVENT BY SELLER; AND TBA T THE DEPOSIT IS A REASONABLE ESTIMATE OF THE