Loading...
RES-2016-010RESOLUTION NO.2 016 — 010 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM APPROVING A DISPOSITION AND DEVELOPMENT AGREEMENT WITH LAB HOLDING, LLC, SUBSTANTIALLY IN THE FORM ATTACHED TO THE RESOLUTION; AUTHORIZING THE DIRECTOR OF COMMUNITY AND ECONOMIC DEVELOPMENT TO FINALIZE SUCH DISPOSITION AND DEVELOPMENT AGREEMENT; AUTHORIZING THE DIRECTOR OF COMMUNITY AND ECONOMIC DEVELOPMENT TO IMPLEMENT SUCH DISPOSITION AND DEVELOPMENT AGREEMENT; AND MAKING CERTAIN OTHER FINDINGS IN CONNECTION THEREWITH WHEREAS, the City of Anaheim (the "City") is a California municipal corporation and charter city; and WHEREAS, the City anticipates acquiring two real property development sites (the "Successor Agency Properties") from the Successor Agency to the Anaheim Redevelopment Agency (the "Successor Agency") pursuant to the Successor Agency's Second Amended and Restated Long Range Property Management Plan prepared and adopted pursuant to Health and Safety Code Section 34191.5; and WHEREAS, the City anticipates acquiring two additional real property development sites (the "Housing Authority Properties") from the Anaheim Housing Authority (the "Housing Authority") pursuant to Health and Safety Code Section 34312.3(b) and a Purchase and Sale Agreement anticipated to be approved by the City and Housing Authority concurrently herewith (the "Purchase and Sale Agreement"); and WHEREAS, the Successor Agency Properties and the Housing Authority Properties are referred to in this Resolution collectively as the "Properties"; and WHEREAS, the City has negotiated the terms of a Disposition and Development Agreement (the "Agreement") with LAB Holding, LLC (the "Developer"), pursuant to which the City will convey the Properties to the Developer for a purchase price of $10,100,000 (the "Purchase Price") and the Developer will develop, operate and maintain the Properties as various mixed use, residential, and retail properties in accordance with the terms of the Agreement; and WHEREAS, in accordance with California Government Code Section 52201, the City held a noticed public hearing regarding the proposed Agreement; and WHEREAS, the City prepared a report summarizing the details of the Agreement in accordance with Section 52201 of the California Government Code (the "Report") and made such Report available for public inspection prior to the public hearing on the Agreement; and WHEREAS, the City Council has duly considered all terms and conditions of the proposed Agreement, including all attachments thereto, and believes that the Project is in the best interests of the City of Anaheim and the health, safety, and welfare of its residents, and in accord with the public purposes and provisions of applicable state and local laws and requirements. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ANAHEIM: Section L The City Council hereby finds and determines that the foregoing recitals are true and correct and are a substantive part of this Resolution. Section 2. The City Council hereby finds and determines, based on all documentation, testimony and other evidence in the record before it, that (a) the proposed sale and development of the Real Property will assist in the creation of economic opportunity, as defined in California Government Code Section 52200.2, by providing for the development of the Properties and operation thereof in accordance with the Agreement, thereby increasing property tax revenues by more than 15% at full implementation, as described in more detail in the Report, and generating jobs and sales tax revenues to the City; and (b) the consideration being paid to the City is not less than the fair market value of the Properties at their highest and best use, as determined by an independent appraiser. Section 3. The City Council hereby directs the Director of Community and Economic Development ("Director") to allocate and budget for the use of the Purchase Price received from the Developer in exchange for the Properties as follows: (a) remit to the Housing Authority the purchase price provided for under the Purchase and Sale Agreement (including the City's assignment to the Housing Authority of the Promissory Note to be received from the Developer pursuant to the Agreement), as provided under the Purchase and Sale Agreement; and (b) the balance of the Purchase Price (net of amounts distributed to taxing agencies other than the City pursuant to Health and Safety Code Section 34180(f)) shall be used and applied for projects and other expenditures in furtherance of the Redevelopment Plan for the Anaheim Merged Redevelopment Project. Section 4. The City Council hereby approves the Agreement, with such changes as may be mutually agreed upon by the Developer, the City Attorney and the Director (or his duly authorized representative), respectively, as are minor and in substantial conformance with the form of the Agreement submitted herewith. The Director and the City Clerk are hereby authorized to execute and attest the Agreement, including any related attachments, on behalf of City. In such regard, the Director (or his duly authorized representative) is authorized to sign the final version of the Agreement after completion of any such non -substantive, minor revisions. Copies of the final form of the Agreement, when duly executed and attested, shall be placed on file in the office of the City Clerk. Further, the Director (or his duly authorized representative) is authorized to implement the Agreement and take all further actions and execute all documents referenced therein and/or necessary and appropriate to carry out the transaction contemplated by the Agreement, including all exhibits thereto. The Director (or his duly authorized representative) is hereby authorized to the extent necessary during the implementation of the Agreement to make technical or minor changes and interpretations of the Agreement after execution, as necessary to properly implement and carry out the Agreement, including all exhibits thereto, provided any and all such changes shall not in any manner materially affect the rights and obligations of the City under the Agreement. Section 5. In addition to the authorization of Section 4 above, the Director is hereby authorized, on behalf of the City , to sign all other documents necessary or appropriate to carry out and implement the Agreement, including all exhibits thereto and including causing the issuance of warrants in implementation thereto, and to administer the City's obligations, responsibilities and duties to be performed under the Agreement, including all exhibits thereto. Section 6. The City Clerk shall certify to the adoption of this Resolution. 2 THE FOREGOING RESOLUTION IS PASSED, APPROVED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF ANAHEIM THIS 12 to DAY OF January , 2016, BY THE FOLLOWING ROLL CALL VOTE: AYES: Mayor Tait and Council Members Kring, Murray, Brandman, and Vanderbilt NOES: None ABSTAIN: None ABSENT: None CITY OF ANAHEIM By: Mayor ATT T: City Clerk ATTACHMENT TO RESOLUTION ATTACH COPY OF AGREEMENT ATTACHMENT TO RESOLUTION Page 1 of I DISPOSITION AND DEVELOPMENT AGREEMENT By and Between CITY OF ANAHEIM and LAB HOLDING, LLC DOCSOC/l 706855N•23/022363-00: 5 Table of Contents Paae 100. INTRODUCTORY PROVISIONS........................................................................................1 101. Definitions....................................................................................................................1 301. 102. Representations, Warranties and Covenants.........................................................10 302. Design Review............................................................................................................23 102.1 City Representations Warranties and Covenants.....................................10 303. Land Use Approvals.................................................................................................23 102.2 Developer's Representations, Warranties and Covenants .......................11 304. Schedule of Performance..........................................................................................23 102.3 City and Developer Representation Re Authority and 305. Cost of Construction.................................................................................................23 Enforceability................................................................................................12 103. Transfers of Interest in Property or Agreement....................................................12 103.1 Prohibition Against Transfer Prior to Release of Construction Covenants......................................................................................................12 103.2 Permitted Transfers.....................................................................................12 1.03.3 City Consideration of Requested Transfer After Release of ConstructionCovenants...............................................................................13 103.4 Assignment and Assumption Agreement...................................................14 103.5 City Action Re Requested Transfer............................................................14 1.03.6 Project Sites Not Severable..........................................................................14 103.7 Covenants Survive Closing..........................................................................14 200. DISPOSITION OF THE PROPERTY................................................................................14 201. Conveyance of the Property to Developer..............................................................14 201.1 Consideration for the Conveyance of the Property...................................14 201.2 Condition of Propertv..................................................................................15 201.3 Opening and Close of Escro-o ....................................................................... 15 201.4 Submittal of Documents...............................................................................16 201.5 Post -Closing Deliveries by Escro-o............................................................... 16 201.6 Payment of Escrow Costs.............................................................................18 201.7 Termination Agreement...............................................................................18 202. Review of Title...........................................................................................................18 203. Title Policies...............................................................................................................19 204. Studies, Reports.........................................................................................................19 204.1 Delivery of Property Documents.................................................................19 204.2 Property Investigation..................................................................................19 204.3 As -Is Environmental Condition..................................................................20 204.4 Indemnities and Releases Re Hazardous Materials..................................20 205. Conditions to Closing...............................................................................................20 205.1 City's Conditions Precedent........................................................................21 205.2 Developer's Conditions Precedent..............................................................21 206. Relocation Obligations of City.................................................................................22 300. POST CONVEYANCE DEVELOPMENT OF EACH OF THE PROJECT SITES...................................................................................................................................... 22 301. Scope of Development...............................................................................................22 302. Design Review............................................................................................................23 303. Land Use Approvals.................................................................................................23 304. Schedule of Performance..........................................................................................23 305. Cost of Construction.................................................................................................23 DOCSOC/1706855v23/022363-0015 Table of Contents (Continued) 306. Insurance Coverage..................................................................................................23 502. 306.2 Policy Provisions...........................................................................................24 503. 306.3 Mutual Waivers............................................................................................25 307. Developer's Indemnity..............................................................................................25 308. Rights of Access.........................................................................................................25 33 309. Compliance with Governmental Requirements.....................................................25 504. 309.1 Nondiscrimination in Employment.............................................................25 310. Release of Construction Covenants.........................................................................26 31.1. Rights of Holder and City under Construction Financing....................................27 50-1. 311.1 Holder Not Obligated to Construct Applicable Developer Improvements............................................................................................... 27 311.2 Notice of Default to Mortgagee or Deed of Trust Holders; Right toCure...........................................................................................................27 311.3 Failure of Holder to Complete Applicable Developer Improvements...............................................................................................27 311.4 Right of the City to Cure Mortgage or Deed of Trust Default.................28 312. Parking Easement Agreement for Project Site No. 3 ............................................28 313. Covenants Survive Closing......................................................................................29 314. Treatment of Moneys from Certain Accounts; Termination of Managementand Operations Agreement...........„..................................................29 400. COVENANTS AND RESTRICTIONS............................................................................... 29 401. Covenant to Develop, Use and Operate the Property in Accordance with the Land Use Approvals and this Agreement.........................................................29 401.1 Historically Significant Buildings...............................................................29 402. Maintenance and Security Covenants.....................................................................30 403. Nondiscrimination.....................................................................................................30 404. Point of Sale and/or Use...........................................................................................31 405. Effect of Violation of the Terms and Provisions of this Agreement ..................... 31 406. Covenants Survive Closing.......................................................................................32 500. DEFAULTS AND REMEDIES............................................................................................32 501. Default Remedies......................................................................................................32 502. Institution of Legal Actions......................................................................................32 503. Re -entre and Revesting of Title in the City............................................................33 503.1 After the Closing and Prior to Recordation of Construction Financing....................................................................................................... 33 503.2 After Recordation and Funding of Construction Financing ....................33 504. Rights and Remedies Are Cumulative....................................................................35 505. Inaction Not a Waiver of Default.............................................................................35 506. Applicable Law..........................................................................................................35 50-1. Covenants Survive Closmg......................................................................................35 600. GENERAL PROVISIONS...................................................................................................35 601. Notices, Demands and Communications Between the Parties..............................35 602. Extension of Times of Performance........................................................................36 603. Non Liability of Officials and Employees of City and Developer .........................36 DOCSOC/ 1706E= 5r23/022363-001 Table of Contents (Continued) Page 604. Relationship Between Cite and Developer..............................................................37 605. Approvals and Actions.............................................................................................37 606. Commencement of City Review Period..................................................................37 607. Successors and Assigns.............................................................................................37 608. Counterparts.............................................................................................................37 38 609. Integration.................................................................................................................37 61.0. Attorneys' Fees..........................................................................................................37 38 61.1. Administration..........................................................................................................38 612. Titles and Captions...................................................................................................38 613. Interpretation............................................................................................................38 614. No Waiver..................................................................................................................38 615. Modifications.............................................................................................................38 616. Severability ................................................................................................................ 38 617. Computation of Time................................................................................................38 618. Legal Advice.............................................................................................................. 38 619. Time of Essence.........................................................................................................39 620. Cooperation...............................................................................................................39 621. Conflicts of Interest...................................................................................................39 622. Time for Acceptance of Agreement by the City....................................................39 623. Recordation of Memorandum of Agreement.........................................................39 624. Covenants Survive Closing......................................................................................39 III DOCSOC/1706855v23/0223630015 LIST OF EXHIBITS EXHIBIT A SITE MAP EXHIBIT B LEGAL DESCRIPTION OF PROJECT SITES EXHIBIT C SCOPE OF DEVELOPMENT EXHIBIT D SCHEDULE OF PERFORMANCE EXHIBIT E ASSIGNMENT AND ASSUMPTION AGREEMENT EXHIBIT F GRANT DEED(S) EXHIBIT G CONCEPTUAL SITE PLAN AND BASIC CONCEPT DRAWINGS EXHIBIT H PARKING EASEMENT AGREEMENT EXHIBIT I PUBLIC ACCESS AGREEMENT EXHIBIT J RELEASE OF CONSTRUCTION COVENANTS EXHIBIT K RIGHT OF ENTRY AGREEMENT EXHIBIT L ASSIGNMENT OF CONTRACTS EXHIBIT M ASSIGNMENT AND ASSUMPTION OF LEASES EXHIBIT N MEMORANDUM OF AGREEMENT EXHIBIT O BILL OF SALE EXHIBIT P DESIGN REVIEW PROCESS EXHIBIT Q HISTORIC COVENANTS EXHIBIT R PROMISSORY NOTE EXHIBIT S DEED OF TRUST WITH ABSOLUTE ASSIGNMENT OF LEASES AND RENTS. SECURITY AGREEMENT AND FIXTURE FILING EXHIBIT T TERMINATION AGREEMENT EXHIBIT U DOWNTOWN PARKING MAP EXHIBIT V OPTION AGREEMENT RE ADDITIONAL PARKING FOR PROJECT SITE NO. I EXHIBIT W DECLARATION OF COVENANTS. CONDITIONS AND RESTRICTIONS IN, DOC SOC/l 706855\,23/022363-0025 DISPOSITION AND DEVELOPMENT AGREEMENT This DISPOSITION AND DEVELOPMENT AGREEMENT (this "Agreement") dated for purposes of identification only as of 2016 (the "Date of this Agreement"), is entered into by and between the CITY OF ANAHEIM, a California municipal corporation and charter city (the "City"), and LAB HOLDING, LLC, a California limited liability company (the "Developer"). RECITALS A. The City owns, or is in the process of acquiring from the Successor Agency and Anaheim Housing Authority. that certain property shown on the Site Map attached hereto as Exhibit A and described in the legal description attached hereto as Exhibit B (the "Property"). The Property is divided into four (4) sites shown as Project Site No. L. Project Site No. 2, Project Site No. 3. and Project Site No. 4 on the Site Map and described individually in the Legal Description. Project Site No. 1 and Project Site No. 3 are owned by the Successor Agency and Project Site No. 2 and Project Site No. 4 are owned by the Anaheim Housing Authority. B. The Developer has proposed to construct a project ("Project") on each of the Project Sites as more particularly described on the Scope of Development attached hereto as Exhibit C within the timeframes described in the Schedule of Performance attached hereto as Exhibit D. C. The development and operation of the Projects on the Property as provided in this Agreement is in the vital and best interest of the City and the welfare of its residents and are in accordance with the public purposes and provisions of applicable state and local laws. Without limiting the foregoing. development and operation of the Projects will result in substantial benefits to the City, which includes job creation and enhanced revenues to the City. NOW, THEREFORE, the Citv and the Developer hereby agree as follows: 100. INTRODUCTORY PROVISIONS 101. Definitions. Capitalized terms within this Agreement shall have the meanings set forth below. or if not defined in this Section 101. shall have the meaning ascribed thereto when such terms are first used herein: "Acquisition Financing" means equity and debt secured by the Developer in an amount sufficient to fund the cash portion of the Purchase Price. "Agreement" means this Disposition and Development Agreement by and between the City and Developer. including all exhibits. "ALTA Policies and Endorsements " is defined in Section 203. "Amendment/Estoppel Costs" is defined in Section 620. "Applicable" or "Each" with reference to "Developer Improvements," "Project," and/or "Project Site," refers to the individual "Developer Improvements." "Project" and/or "Project Site." as applicable. DOCSOC/17068-55x23/022363-001; "Assignment and Assumption Agreement" is attached hereto as Exhibit E. "Assignment and Assumption of Leases" is the document attached hereto as Exhibit M which assigns to the Developer all of the existing leases in the PackingZ-- District. "Assignment of Contracts" is the document attached hereto as Exhibit L which assigns to the Developer all warranties and guarantees in favor of the City provided to the City by vendors and/or contractors with respect to the real and personal property described in Attachment No. 1 attached to Exhibit I. "Barrel Building" is located within Project Site No. 3 ) as shown on the Site Map. "Best of City's Knowledge" means the knowledge of John Woodhead without duty of further inquiry. "Best of Developer's Knowledge" means the knowledge of Shaheen Sadeghi without duty of further inquiry. "Bill of*Sale" means that certain Bill of Sale attached hereto as Exhibit 0 which conveys all of the City's right, title and interest in the personal property associated with the Packing House and Farmers Park on Project Site No. I which personal property is listed as Exhibit I to the Bill of Sale. "Breach" is defined in Section 501. "Burns House" is located within Project Site No. 4 as shown on the Site Map. "CarPark" means those certain parking structures designated as CarPark 2, CarPark 3, Z� CarPark 4, CarPark 5, CarPark 6. and CarPark 7 as shown on the Downtown Parking Map. "Cash Portion of the Purchase Price" is defined in Section 201.1. "Certificate of Occupancy" means a certificate of occupancy issued lav the City pursuant to Section 309 of the 1997 Uniform Administration Code or any successor ordinance. "City,". as defined in the first paragraph hereol", means the City of Anaheim. a California municipal corporation and charter city. "City's Conditions Precedent" is defined in Section 205.1. "City, Manager" means the city designee. manager or his/her Z� _-nee. "Closing" or "Close of Escrow" is defined in Section 201.3 . "Closing, Date" is the date upon which conveyance of the Property, is consummated in accordance with Section 201.3 hereof. "CLTA Policy" is defined in Section 203. "Compensation Agreements" means those agreements with taxing entities described in 6 -- Health & Safety Code Section 34180(f)(1). DOCSOC/1706855v23/02236' -0015 "Completion," "Completed" or "Complete(,)" means. with respect to Each Project, the Completion of construction of the Applicable Developer Improvements as evidenced by a final Certificate of Occupancy issued by the City. as well as certification by the Project Architect and the Cite Manager that the Applicable Developer Improvements have been substantially completed in accordance with the Construction Drawings. "Conceptual Site Plan and Basic Concept Drawings" are attached hereto as Exhibit G and generally depicts the proposed Project on Each Project Site. "Conditions Precedent" means the City's Conditions Precedent and Developer's Conditions Precedent set forth in Section 205. "Construction Commencement Date" means the date that is set forth in the Schedule of Performance as the date upon which the construction of the Applicable Developer Improvements. pursuant to validly issued building permits. is to commence. "Construction Drawings" is defined in Exhibit P. "Construction Financing" means a loan. with respect to Each Project. from a reasonably qualified institutional lender ("Construction Lender") in an amount which, when aggregated with equity capital, is sufficient to fund the acquisition of the Property and construction of the Applicable Developer Improvements corresponding to such Project Site in accordance with this Agreement. "Construction Lender" is defined within the definition of Construction Financing. "Conveyance" means the conveyance of the Property to the Developer by Grant Deeds. "Cooks Chapel" is the event spaceicommon kitchen located within the Packing House as of the Date of this Agreement. "Date of this Agreement" means the date of approval of the Agreement by the City. "Declaration" means a Declaration of Covenants. Conditions and Restrictions which will be entered into by the parties prior to Closing which Declaration shall address the management. operation, rules of conduct. security and access rights and other easements. as applicable. with respect to Each Project Site. The Declaration shall also include the covenants, which covenants shall remain in effect for not less than the periods set forth therefor within the definition of Surviving Covenants set forth in this Agreement. Exhibit W is a draft of the Declaration; provided that the final form of the Declaration is to be agreed to between the parties prior to Closing, to address, without limitation, those matters set forth in the preceding portion of this definition. "Deed of Trust with Absolute Assignment o f Leases and Rents, Security Agreement and Fixture Filing" means the deed of trust in the form attached hereto as Exhibit S securing repayment of the Promissory Note. Default" is defined in Section 501. "Deposit" is defined in Section 201.1. "Design Development Drawings" is defined in Exhibit P. DOCSOC1706855N,23/022363-0015 "Design Review Process" is described in Exhibit P attached hereto. "Developer" means Lab Holding, LLC. a California limited liability company. "Developer/City Request" is defined in Section 620. "Developer Improvements" means the specific improvements to be constructed by Developer for Each Project Site. as more particularly described in the Scope of Development. "Developer's Conditions Precedent" is defined in Section 205.2. "DOF Approval" means approval by the California Department of Finance granted to the Successor Agency with respect to the Long Range Propertv Management Plan permitting the Successor Agency to convey Project Site No. i. Project Site No. 3. CarParl: 2. CarPark 3. CarPark 4. CarPark 5. CarPark 6, and Carpark 7 to the Citi. "Downtown Parking Map" means Exhibit U hereto. "Due Diligence Date" means thirty (30) days following the Date of this Agreement, provided that the Due Diligence Date shall be extended for a period of fifteen (15) days if the City does not provide assurances satisfactory to the Developer with respect to Exceptions that Developer disapproves pursuant to Section 202 hereof and shall further be extended by the terms of Section 204.2. "Each Project Site" means Project Site No. 1, Project Site No. 21, Project Site No. 3 and Project Site No. 4, respectively. "Enforced Delay" is defined in Section 602. "Environmental Law" means the Comprehensive Environmental Response. Compensation and Liability Act of 1980, as amended (42 U SC §9601 et seq. ), the Hazardous Materials Transportation Act. as amended (49 USC § 1801 et seq.), the Resource Conservation and Recovery Act of 1976. as amended (42 USC § 6901 et seq.), the Toxic Substances Control Act (15 USC § 2601 et seq.), the Insecticide, Fungicide. Rodenticide Act (7 USC § 136 et seq.), the Superfund Amendments and Reauthorization Act (42 USC § 6901 et seq.). the Clean Air Act (42 USC § 7401 et seq.), the Safe Drinking Water Act (42 USC § 300f et seq.). the Solid Waste Disposal Act (42 USC 6901 et seq.), the Surface Mining Control and Reclamation Act (30 USC § 1201 et seq.), the Emergency Planning and Community Right to Know Act (42 USC §§ 11001 et seq.). the Occupational Safety and Health Act (29 USC § 655 and 657). the California Underground Storage of Hazardous Substances Act (Health and Safety Code § 25280 et seq.), the California Hazardous Substances Account Act (Health & Safety Code § 25300 et seg.), the Porter -Cologne Water Qualitv Act (Water Code § 13000 et seq.), together with any amendments of or regulations promulgated thereunder and any other federal. state, and local laws, statutes. ordinances. or regulations now in effect that pertain to occupational health or industrial hygiene. "Escrow" is defined in Section 201.3. "Escrow Agent" is defined in Section 201.3. DOCSOC/1 706855v23/022363-001; "Farmers Park" is located within the Packing District and Project Site No. 1, as shown on the Site Map. "Governmental Requirements" means all valid and enforceable laws, ordinances, statutes. codes, rules, regulations. orders and decrees of the United States. the State. the County, the City or any other political subdivision in which the Site is located, and of any other political subdivision, agency or instrumentalitv exercising jurisdiction over the Agency. the Developer or the Site, including, without limitation. all applicable state labor standards, the City zoning and development standards. building, plumbing, mechanical and electrical codes.. and all other provisions of the City Municipal Code, and all applicable disabled and handicapped access requirements. including without limitation (to the extent applicable), Labor Code Sections 1770 et seq., the Americans With Disabilities Act, 42 U.S.C. Section 12 10 1. et seq.. Government Code Section 4450. et seq., Government Code Section 11135. et seq.. and the Unruh Civil Rights Act, Civil Code Section 51. et seq. "Grant Deed(s)" means a grant deed(s) in the form of Exhibit F attached hereto. by which the City shall convey fee title to Each Project Site to Developer. "Hazardous Materials" means any toxic substance, material, or waste which is now regulated by anv local governmental authority. the State of California. or the United States Government under anv Environmental Law and includes asbestos. petroleum, petroleum products, polychlorinated biphenyls, urea formaldehyde. radon gas, radioactive matter, and chemicals which may cause cancer or reproductive toxicity. "Historic Covenants" is attached hereto as Exhibit "Holder" is defined in Section 3 i 1.1. "Indemnify" means indemnify, defend, pay for and hold harmless. "Indemnitees" means the Cin-. and its representatives. officers. employees and agents. "Insurance" is defined in Section 306 et seg. "Insurance Date" is defined in Section 306. "Land Use Approvals" is defined in Section 303. "Legal Description" means the legal description of the Project Sites attached hereto as Exhibit B. "Liabilities" means liabilities. suits. actions. claims. demands, penalties. damages (including without limitation, penalties. fines. and monetary sanctions). giving rise to losses, costs or expenses (including. without limitation. consultants' fees. and reasonable attorneys' fees) of any kind or nature and for any damages, including damages to property or injuries to person. including accidental death. (including reasonable attorneys" fees and costs in connection therewith.). "Loan Balance" means. with respect to any Holder and its mortgage or deed of trust. the sum of the following amounts: (a) the aggregate unpaid amount (including. but not limited to, principal, protective advances. interest, including default interest. fees. costs, expenses and late DOCSOC/; 706855v23/022363-001 charges) owing to the Holder under the loan documents ("Holder Loan Documents") secured by such Holder's mortgage or deed of trust upon the Site (or any part thereof) immediately prior to the Revesting of title in City in accordance with this Agreement. whether Ciry exercises such right of Revesting prior to such Holder's acquisition of Applicable Project Site (or portion thereof) by foreclosure or deed in lieu of foreclosure, or after completion of a foreclosure under such Holder's mortgage or deed of trust (or acceptance and recordation of a deed -in -lieu of such foreclosure); plus (b) all third party costs and expenses reasonably incurred by such Holder (and/or such Holder's Nominee) under, or in connection with the enforcement of the applicable Holder Loan Documents, including. without limitation. foreclosure costs and expenses (or deed -in -lieu of foreclosure costs and expenses) (such costs and expenses to include.. but not be limited to, title charges. default interest, appraisals. environmental assessments and reasonable attorneys' fees. expenses and late charges): plus (c) if City commences the exercise of its Revesting after- such Holders (or its Nominee's) acquisition of the Applicable Project Site or any portion thereof) by foreclosure or deed -in -lieu of foreclosure. all third party costs and expenses. if any. reasonably incurred by such Holder (and/or such Holder's Nominee) in connection with tine management and operation of the Applicable Project Site subsequent to the date upon which a foreclosure under such mortgage or deed of trust is completed [or such Holder or its Nominee accepts a deed in lieu of foreclosure]; plus (d) all third party costs and expenses reasonably incurred by such Holder (and/or such Holder's Nominee) in connection with the construction of Applicable Developer Improvements (including tenant improvements), restoration. repair and equipping of the Applicable Project Site (or any portion thereof); plus (e) if Cite commences the exercise of its right of Revesting after such Holder's (or its Nominee's) acquisition of the Applicable Project Site (or- any portion thereof) by foreclosure or deed - M -lieu of foreclosure, an amount equal to the interest that would have accrued on the aggregate of the amounts described above under the Holder- Loan Documents had all such amounts become part of the debt secured by such Holder's mortgage or deed of trust and had such debt continued in existence from the date of such foreclosure (or acceptance of a deed -in -lieu of foreclosure) by such Holder or its Nominee to the date Cin reenters in accordance with this Agreement. (For purposes of this definition. the City's right to Revest in accordance with this Agreement shall not be deemed to have occurred prior to the date the Loan Balance is paid to the Holder or its Nominee) in accordance with the Agreement). Each Holder (or its Nominee) shall provide Cite with its calculations of the Loan Balance and documents in support thereof within ten (10) days after written demand therefore by the "Long Range Property Management Plan" is the plan submitted by the Successor Agency to the DOF for approval which permits disposition of the Project Site No. 1 and Project Site No. 3 to the City, subject to Compensation Agreements. if required by iaw. "MAKE Building" is located at 500 South Anaheim Boulevard within Project Site No. l and the Packing District. as shown on the Site Map. "Management and Operations Agreement" means that certain agreement dated November 1. 2010 between the former Anaheim Redevelopment Agency and Packing District. LLC ("Manager"),. an affiliate of Developer. pursuant to which Manager agreed to perform certain construction. development. and property management services with respect to the certain properties within the Packing District. "Memorandum of Agreement" is attached hereto as Exhibit N 6 DOCSOC/1706855v23/022363-001 "Nominee" means with respect to a Holder, a party in control of, under common control with or controlled by such Holder. "Notice" is defined in Section 601. "Official Records" means the official land records of the Office of the Registrar Recorder of Orange County, California. "Option Agreement re Additional Parking for Project Site No. I" is attached hereto as Exhibit V. "Outside Date" means the day that is the later of the (i) ten (10) business days after the fulfillment or waiver of all Conditions Precedent. but in no event later than December 31. 2016. Enforced Delay notwithstanding "Packard Building" is located within Project Site No. 1. and the Packing District as shown on the Site Map. "Packing District" means, collectively. the Packard Building, Farmers Park-, Packing House, MAKE Building and surrounding property located within Project Site No. 1, as shown on the Site Map. "Packing House" means that area located within Project Site No. I and the Packing District, as delineated on the Site Map. "Parking Easement Agreement(s) " are the agreements, separately executed with respect to Project Z-- Z� ect No. I and Project No. 3 ). The Parking Easement Agreement for Project Site No. I shall be in . substantially the form attached hereto as Exhibit R. The Parking Easement Agreements) are without limitation as to the rights of Developer to exercise an option with respect to one hundred seventy (170) parking spaces within Carpark 2 in accordance with the Option Agreement re Additional Parking for PrQject Site No. 1. The terms of the Parking Easement Agreement for Project Site No. 3 are described in Section 312. "Permitted Transfer" is defined in Section 103.2, "Phase I Environmental Assessment" means an assessment to identify Recognized Environmental Concerns defined under ASTM Standards E-1527-00 as the presence or likely presence of any hazardous substances or petroleum products on a property under conditions that indicate an existing release, past release, or material threat of a release of any hazardous substance or petroleum products into structures on the property or into the ground., groundwater', or surface water of the propertN . "Phase H Environmental Assessment" means an evaluation of the Recognized Environmental Concerns identified in the Phase I Environmental Site Assessment for the purpose of providing sufficient information regarding the nature and extent of contamination. "Presence" means the presence. release. use. generation, discharge. storage and disposal of anv Hazardous Materials. DOCSOC/1 706855N 23/022363-0015 "Project(s)" mean the development use and operation of the Applicable Developer Improvements on Project Site No. 1, Project Site No. 2, Project Site No. 3. and/or Project Site No. 4. "Project Architect" means the architect retained by the Developer to prepare the Construction Drawings and supervise construction of the Projects. "Project Site No. I" is shown on the Site Map. "Project Site No. 2" is shown on the Site Map. "Project Site No. 3" is shown on the Site Map. "Project Site No. 4" is shown on the Site Map. "Promissory Note" means the note in the form attached hereto as Exhibit R evidencing the Developer's obligation to pay the balance of the Purchase Price to the City concurrently with the earlier to occur of issuance of building permits for the Project on Project Site No. 2 or the recordation of Construction Financing for the Project on Project Site No. 2. "Property" means. collectively. Project Site No. 1, Project Site No. 2, Project Site No. 3, and Project Site No. 4. "Property Condition" is defined in Section 204.3. "Public Access Agreement" is an agreement. to be recorded anion; Official Records, which shall require the Packing House (except Cooks Chapel), Farmers Park, and the Packard Building to be open to the public free of charge during normal business hours as long as such public use does not interfere with the business operations of the Packing House: provided that Farmers Park may be closed, in its entirety, for not more than 60 private events per year and, at am" time, may be subject to an entre fee for special events open to the general public; provided further that Developer may also request to limit Public Access for the Packing House, or a portion thereof for special private events on an occasional basis with the prior written permission of the City Manager, which permission may be granted or withheld by the Citi Manager acting in his/her sole and absolute discretion. "Purchase Price" is defined in Section 201.1. "Recognized Environmental Concerns" means the presence or possible presence of any hazardous substances or petroleum products on the Property and/or Each Project Site under conditions that indicate an existing or possible release, a. past release, or a material threat of a release of anv hazardous substances or petroleum products into structures on the Property and/or Each Project Site or into the ground. ground water. or surface water of the Property and/or Each Project Site. The term is not intended to include de mininais conditions that generally do not present a threat to human health or the environment and that generally would not be the subject of an enforcement action if brought to the attention of appropriate governmental agencies. Conditions determined to be de mininis are not Recognized Environmental Conditions. "Release of Construction Covenants" means satisfactory Completion of the Applicable Developer Project Site No. 1, Project Site No. 2, Project Site T Section 310. in the form of Exhibit 3 attached hereto. DOCSOC/1706355v23/022363-001 the document which evidences Developer's improvements, or a part thereof (namely, o. 3 or Project Site No. 4), as set forth in It is contemplated that a separate Release of Construction Covenants will be made available as to each Project Site upon satisfaction of the conditions precedent to the issuance of such Release. "Revest" or "Revesting" means revesting. recovering or returning title to the Property or Project Sites to the City. "Right of Entre" means those rights provided by the Right of Entry Agreement. "Right of Entry Agreement" means Exhibit K. "Schedule of Performance" means Exhibit D hereto. The Schedule of Performance sets out the dates and/or time periods by which certain obligations set forth in this Agreement must be accomplished. The Schedule of Performance is subject to revision from time to time due to the application of Section 602 hereof and as mutually agreed upon in writing between Developer and the City Manager. and the Citv Mana-er is authorized to make such revisions as he deems reasonably necessary. "Scope of Development" means Exhibit C, which describes the scope, amount and qualit<,, of development of the Developer Improvements to be Completed by Developer on Each Project Site. "Site Map" means the map of the Property and Each Project Site is attached hereto as Exhibit A. "State" means the State of California. "Successor Agenev" means the entity established pursuant to Health & Safety Code Sections 34170 et seq. as the successor to the Anaheim Redevelopment Agency. "Surviving Covenants" means the covenants, obligations and promises of Developer hereunden including without limitation the covenants. obligations and promises set forth in Section 103?. 103.3. 103.4, 204.3, 204.4, 304 through 309_ inclusive, 311.4- 312, 400.. 401, 5031. 603. 604. and 624. The Surviving Covenants shall survive the Closing, run with the land and be binding upon heirs, successors and assigns of Developer. The Covenants contained in Sections 103. 401. and the Declaration shall remain in effect in accordance with their respective terms. The Covenants contained in Sections 2043, 204.4. 307, 309, 401.1_. 402, 403. and 603 shall remain in effect in perpetuity. "Termination Agreement" means that certain agreement attached hereto as Exhibit T which, upon exercise thereof in conformity with this Agreement_. will terminate the Management and Operations Agreement as to Project Site No. 1. "Title Companp" is defined in Section 202 hereof. "Title Polices" means the CLIA Policy, the CAN, Loan Policy, and the ALTA Policies and Endorsements is defined in Section 203 hereof. "Title Report" is defined in Section 202. "Transfer" means any total or partial sale. transfer. conveyance, assignment, subdivision, financing, refinancing, lease or sublease. 9 DOCSOC/; 706855v23/02236,-0015 "Transferee" means a voluntary or involuntary successor in interest to the Developer 102. Representations, Warranties and Covenants. 102.1 City Representations Warranties and Covenants. The City hereby makes the representations, warranties and covenants contained below in this Section 102.1. All of the representations and warranties set forth in this Section 102.1 are effective as of the Date of this Agreement, are true in all material respects as of the Date of this Agreement. and shall be true in all material respects as of the Closing Date, and each shall survive the execution of this Agreement without limitation as to time. (a) The City is a California municipal corporation and charter city. The execution and delivery of this Agreement bN the City has been fully authorized by all requisite actions. (b) To the Best of Cirv's Knowledge, the City's execution and delivery of this Agreement does not violate any applicable laws, regulations, or rules nor to the Best of City's Knowledge after due inquiry. will it constitute a breach or default under anv contract, agreement. or instrument to which the City is a party, or any judicial or regulatory decree or order to which the City is a party or by which it is bound; provided however that while City believes this Agreement to be enforceable in accordance with its terms. City makes no representations or warranties regarding the enforceability hereof. (c) The City has not made an assignment for benefit of creditors, filed a petition in bankruptcy, been adjudicated insolvent or bankrupt, petitioned a court for the appointment of any receiver of or trustee for it or anv substantial part of its property, or commenced any proceeding- relating to the City under anv reorganization. arranL=ement. readjustment of debt. dissolution, or liquidation law or statute of anv jurisdiction. whether now or later in effect. There has not been commenced nor is there pending against the City any proceeding of the nature described in the first sentence of this subsection (c). No order for relief has been entered with respect to the Cite under the Federal Bankruptcy Code. (d) All documents. instruments and other information delivered by the City to Developer pursuant to this Agreement, other- than documents. instruments and other information received by Cite from third parties_. are. to the Best of City's Knowledge, true. accurate. correct and complete in all material respects. (e) The Cln has taken all legally required actions. and no further consent. approval. or authorization of any third person is required with respect to the City's execution delivery, and performance of this Agreement. other than consents, approvals.. and authorizations which have already, been unconditionally given. (f) The City is not a "foreign person" within the parameters of Foreign Investors in U.S. Real Property Tax Act ("FIRPTA"). or is exempt from the provisions of FIRPTA. or the City has complied and will comply with all the requirements under- FIRPTA. (g) To the Best of Citv's knowiedge. (a) there are no actions. investigations, suits, or proceedings pending or overtly threatened that affect the Property, (b) there are no judgments, orders, awards. or decrees currently in effect against Seller with respect to the 1 Ci DOC�OC/:7068-�5\ 23/022363-00'. Property , and (c) there are no pending or threatened claims that the Property is in material violation of anv law or ordinance. (h) to the Best of City's knowledge. there are no pending proceedings to alter or restrict the zoning or other use restrictions applicable to the Property. to condemn all or any portion of the Property by eminent domain proceedings or otherwise, or to institute a moratorium or similar restriction on building on or issuing certificates of occupancy for construction on the Property. (1) to the Best of City's knowledge. there is no pending or threatened action by the City precluding or inhibiting (a) issuance of building permits with respect to the Property: (b) issuance of certificates of occupancy for residences on the Property, or (c) issuance of water. sewer. or other utility connection permits affecting the development of the Property (j) until the Closing Date and thereafter. the City shall. upon learning of anv fact or condition which would cause any of the warranties and representations in this Section 102.1 not to be true as of the Ciosing Date, give written notice of such fact or condition to Developer as soon as is reasonably practicable. Each of the foregoing items (a) through (k), inclusive shall be deemed to be ongoing representations, warranties and covenants. 102.2 Developer's Representations, Warranties and Covenants. Developer hereby makes the representations, warranties and covenants contained below in this Section 102.2. All of the representations and warranties set forth in this Section 102.2 are effective as of the Date of this Agreement. are true in all material respects as of the Date of this Agreement. and shall be true in all material respects as of the Closing Date, and each shall survive the execution of this Agreement without limitation as to time. (a) Developer is a duly organized California limited liability company and in good standing under the laws of the State of California and is authorized to cam on its business in California as such business is now conducted and to own and operate its properties and assets now owned and being operated by it. and as set forth in and anticipated by this Agreement. Developer has full right, power and lawful authority to enter into this Agreement and the execution and delivery of this Agreement by Developer has been fully_ authorized by all requisite actions on the part of Developer. Developer has provided the City with true and correct copies of documentation reasonably acceptable to the City Manager designating the part authorized to execute this Agreement on behalf of Developer. (b) Developer's execution. deliver, and performance of its obligations under this Agreement will not violate any applicable laws. regulations. or rules nor to the Best of Developer's Knowledge after due inquiry. will it constitute a breach or default under anv contract. agreement, or instrument to which Developer- is a party. or any judicial or regulatory decree or order to which Developer is a party or by which it is bound. (c) Developer has not made an assignment for the benefit of creditors. filed a petition in bankruptcy. been adjudicated insolvent or bankrupt, petitioned a court for the appointment of any receiver of or trustee for it or an), substantial part of its property. or commenced anv proceeding relating to Developer under any reorganization, arrangement. readjustment of debt. DOCSOC/170685w213/022363 001 dissolution. or liquidation law or statute of any jurisdiction. whether now or later in effect. There has not been commenced nor is there pending against Developer any proceeding of the nature described in the first sentence of this subsection (c;. No order for relief has been entered with respect to Developer under the Federal Bankruptcy Code. (d) All documents. instruments. and other information delivered by Developer to the City pursuant to this Agreement are, to the best of Developer's knowledge. true. accurate, correct and complete in all material respects. (e) This Agreement and all documents to be delivered by Developer pursuant to this Agreement. when executed by Developer and delivered, shall constitute the legat. valid and binding obligation of Developer. The Developer has taken all legally required actions. and no further consent, approval. or authorization of any third person is required with respect to the Developer's execution delivery. and performance of this Agreement, other than consents.. approvals, and authorizations which have alreadv been unconditionally Given. (f) until the Closing Date and thereafter. Developer shalt, upon learning of any fact or condition which would cause any of the warranties and representations in this Section 102.2 not to be true as of the CiosinQ Date, immediately Give written notice of such fact or conditions to the City. Each of the foregoing items (a) to (f). inclusive shall be deemed to be ongoing representations. warranties and covenants. 102.3 Citi- and Developer Representation Re Authority- and Enforceability-. City and Developer hereby covenant. represent and warrant to each other that neither will assert the lack of autihority or enforceability of this Asireement a�Lainst the other. 103. Transfers of Interest in Property- or Agreement. 103.1 Prohibition Against Transfer Prior to Release of Construction Covenants. The qualifications and identity of Developer are of particular concern to the City. It is because of those qualifications and identit- that the Cit-\ has entered into this Agreement with Developer. Except as expressly set forth in Section 103.2 below, for the period commencing upon the Date of this Agreement and continuing until the issuance of the Release of Construction Covenants. no Transferee shall acquire any rights or powers under this Agreement, nor shall Developer make any Transfer of the Property or anv part. or anv of the Applicable Developer Improvements without the prior written approval of the Cl"-. which approval may be granted or withheld in the sole and absolute discretion of the Cite. Following the issuance of the Release of Construction Covenants. anv Transfer shall be Governed by Section 103.3. 103.2 Permitted Transfers. Notwithstanding any other provision of this Agreement to the contrar) . both before and after the issuance of the Release of Construction Covenants as to Applicable Developer Improvements on a particular Proiect Site. the City approval of an assignment of this Agreement or Conveyance of the Property, shall not be required in connection with anv of the following (each of which shall be "Permitted Transfer"): (a) The conveyance or dedication of any portion of the Propem_ to the City. or other appropriate governmental agency. for the purpose of the granting of easements. permits 12 DOCSOC/ i 706855N,23/02_363-00? or similar rights to facilitate construction. use and/or operation of the Applicable Developer Improvements. (b) Any Transfer for Construction Financing purposes of the corresponding Project Site. including the grant of a deed of trust to secure the funds necessary for land acquisition. construction and permanent financing of the Applicable Developer Improvements. as applicable (c) Any Transfer of the corresponding Project Site to an entity in which Developer or an entity controlled by, under the control of or in common control with Developer (a) retains operational control over the management, development and construction of the Applicable Developer Improvements. and (b) retains a direct or indirect equity interest in profit and losses in the Project. (d) Any Transfer of the corresponding Project Site to a Hoider, or its Nominee by foreclosure or deed in lieu of foreclosure, or to a third party purchaser at a foreclosure sale or after foreclosure by the Holder or its Nominee. (e) Any Transfer of the corresponding Project Site to a lessee or sublessee of a portion of the Property that is incidental to the primary purpose of the Applicable Developer Improvements provided such lessee or sublessee is consistent with the overall use and purpose of the Development Improvements. For purposes of this Agreement, Developer shall have the right to make a Permitted Transfer with respect to Each Project Site in conformity with the terms and conditions described above. but not portions of any Project Site. The requirement that the Project Site shall be held as one unit and not divided shall be included in the Covenants and the Declaration. 103.3 Citi- Consideration of requested Transfer After Release of Construction Covenants. The Developer shall have the right. following issuance of a Release of Construction Covenants to Transfer of a Project Site following completion of the Applicable Developer Improvements on such Project Site (including any applicable offsites which are conditions of development approval) subject to the provisions of this Section 103.3. In such event, Developer shall deliver written Notice to City requesting such approval which Notice shall be accompanied by sufficient evidence regarding the proposed Transferee's financial resources and development and operational qualifications and experience.. in sufficient detail to enable the City to evaluate the proposed Transferee pursuant to the criteria set forth hereinbelow. The City shall evaluate each proposed Transferee on the basis of its qualifications and experience, and its financial commitments and resources. City may not disapprove any proposed Transferee that demonstrates. to the reasonable satisfaction of the Cite, that (i) the transferee/asslgliee or its guarantor has a net worth sufficient to provide the prerequisite equity and access to debt offered by an institutional commercial real estate lender so as to permit the financing of the acquisition and operation of the Project and (ii) transferee/assignee and/or its contract manager or the individual within the contract management entity responsible for management of the Project constructed on the corresponding Project Site has experience in operating the Applicable Project Site. The provisions of this Section 103.3 shall terminate with respect to Project Site No. 1 on the twentieth \?Othl anniversary date of the Closing. and. with respect to the Project Site No. _. Project Site No. 3 and Project Site No. 4. on the fifth (5th) anniversary date of Completion of the Applicable Project corresponding to such Project Site. 13 DO:.'SOC/1706855e23/022363-002 103.4 Assignment and Assumption Agreement. An executed Assignment and Assumption Agreement (or a document effecting a. Transfer that includes the substantive provisions of the Assignment and Assumption Agreement) shall also be required for all proposed Transfers. with respect to the portion of the Property so transiarred whether or not City's consent is required to a Transferee who has an obligation to construct and. with respect to Project Site No. 1 and Project Site No. 3. operate all or any portion of the Applicable Developer Improvements. 103.5 City Action Re Requested Transfer. Within thirty (30) days after the receipt of a written Notice requesting City approval of a Transfer pursuant to Section 103.3, the City shall either approve or disapprove such proposed assignment or shall respond in writing by stating what further information, if any. the Cit-\1 requires in order to determine the request complete and determine whether or not to grant the requested approval. Upon receipt of such a response, Developer shall promptly furnish to the City such further information as may be reasonably requested. 103.6 Project Sites Not Severable. Notwithstanding anything herein to the contran Developer shall not sell portions of any Project Site after Completion of Each Project, in perpetuity: provided, however that this restriction shall not apply if and to the extent any of the Project Sites are developed and marketed as residential condominium projects. 103.7 Covenants Survive Closing. Notwithstanding anything to the contrary set forth in this Agreement. the provisions set forth in this Section 103. er seq. as well as the remaining Surviving Covenants shall survive the Closing. 200. DISPOSITION OF THE PROPERTY 201. Conveyance of the Property to Developer. Subject to the satisfaction of the Conditions Precedent set forth hereinbelow. on or before the date set forth in the Schedule of Performance. but in no event later than the Outside Date, the Citi shall cause the conveyance of the Property and the grant of the Option agreement re Additional Parking for Project Site No. 1 to Developer ("Conveyance") in the condition described in Sections 201.2 and 204.3 and the Scope of Development in consideration for compliance with the terms and conditions of this Agreement and Developer shall accept Conveyance in accordance with the terrns of this Section 201. 201.1 Consideration for the Conveyance of the Property. The consideration for the Conveyance will be Ten Million One Hundred Thousand Dollars ($10,100.000) payable Seven Million, Six Hundred Thousand Dollars ($?.600.0001 (the "Cash Portion of the Purchase Price") at the Closing with the balance of Two Million. Five Hundred Thousand Dollars ($2.00.000) evidenced by the Promissory Note (the "Purchase Price"). the repayment of which will be secured by the Purchase Money Deed of Trust against Project Site No. 2 (the "Purchase Price") plus Developer's construction and operation of the Project in accordance with this Agreement. and its promise to otherwise be bound by the Surviving Covenants and the Declaration. The parties acknowledge that the Purchase Price is based on fair market value appraisals. Developer has deposited with the City the sum of One Hundred Thousand Dollars ($100,000) (the "Deposit") of which Deposit the City shall retain for its own purposes. to pay for costs incurred by Citi in connection with the implementation of the Agreement: except in the event (i) Developer acquires the Property pursuant to this Agreement. in which case upon the Closing the Deposit will be applied to the Purchase Price. (ii) failure to close as a result of City's Default or failure of the Conditions described in Section 205.2 or 14 DOCSOC/1706855v°23/022363-0015 (iii) Developer terminates this Agreement pursuant to Section 202 or 204.2 in which case the City shall return the unspent portion of the Deposit to Developer. 204.2 Condition of Property. EXCEPT AS SET FORTH IN SECTION 204 HEREOF. DEVELOPER HAS AGREED TO ACCEPT POSSESSION OF THE PROPERTY ON THE CLOSING DATE ON AN "AS IS" BASIS. CITY" AND DEVELOPER AGREE THAT THE PROPERTY SHALL BE SOLD "AS IS, WHERE IS, WITH ALL FAULTS" WITH NO RIGHT OF SET OFF OR REDUCTION IN CONSIDERATION. AND, EXCEPT AS SET FORTH IN SECTIONS 102.1 AND 204 HEREOF, SUCH SALE SHALL BE WITHOUT REPRESENTATION OR WARRANTY OF ANY KIND, EXPRESS OR IMPLIED (INCLUDING WITHOUT LIMITATION. WARRANTY OF INCOME. POTENTIAL. OPERATING EXPENSES. USES_ MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE), AND SELLER DISCLAIMS AND RENOUNCES ANY SUCH REPRESENTATION OR WARRANTY. 201.3 Opening and Close of Escrow. The Conveyance of the Property shall be consummated ("Closing" or "Close of Escrow") on the date ("Closing Date") set forth in the Schedule of Performance, but in no event later than the Outside Date or such other date as agreed to by the parties in writing, each acting in their sole and absolute discretion, through an escrow (the "Escrow") established at First American Title or another escrow company mutually agreeable to the parties (the "Escrow Agent") which Escrow shall be opened within ten (10) days following the Date of this Agreement. Escrow Agent is hereby authorized to effect the Closing upon satisfaction of the Conditions to Closing set forth in Section 205 by taking the following actions: (a) Current real property taxes, personal property taxes, and installments of assessments and all items of income (if any) and expense regarding the Property shall be prorated as of the Closing. (b) Concurrenth- with the Closing of Escrow. Escrow Agent shall cause the Title Company to issue the Title Policy, as described in Section 203. (e) Escrov, Agent shall pay and charge: (i) Developer for the following: (aa) the Cash Portion of the Purchase Price. (bb) the recording cost of the Grant Deed and other closing documents, (cc) the premium for the City Loan Policy, (dd) the additional premium for the ALTA Policies and Endorsements (as hereinafter defined), if any, (ee) half of the escrow fees charged by the Escrow Agent. (ff) Developer's share of proration: and (ii) Cite for the following (aa) one-half of escrow fees, (bb) City's share of prorations, and (cc) the cost of the CLTA Policy. (d) Escrow Agent shall record, in the following order, the following documents: (i) The Grant Deed: (ii) The Declaration. (iii) Purchase Money Deed of Trust. (iv) The Memorandum of Agreement; (v) Public Access Easement: l� DOCSOC/1706855v23/022363-001 (vi) Parking Easement Agreement (Project Site No. 1); (vii) Historic Covenants. (viii) Option Agreement re Additional Parking for Project Site No. 1: and (ix) Bill of Sale. all duly executed and acknowledged by the appropriate party. 201.4 Submittal of Documents. (a) At least two (2) days prior to the Close of Escrow, Developer shall execute and submit to Escrow Agent the following: (i) The original certificate of acceptance of the Grant Deed duly executed by Developer and acknowledged. (ii) The Deed of Trust: (iii) Two (2) originals of the Declaration. Memorandum of Agreement. Public Access Easement, and Parking Easement Agreement duly executed by Developer and acknowledged. (iv) The original Executed Promissory Note. (v) Two (2) originals of the Termination Agreement duly executed by Packing District. LLC. the Manager under the Management and Operation Agreement. (vi) Any documents to be recorded as part of Developer's financing of the Project. along with a request for notice of default executed by the City. (b) At least two (2) days prior to the Close of Escrow, City shall execute and deliver to Escrow the following: acknowledged: (i) The original Grant Deeds duly executed by City and (ii) Two (2) originals of the Declaration, Memorandum of Agreement. Public Access Easement, Parking Easement Agreement. Historic Covenants, Bill of Sale. and Assignment of Contracts. Assignment and Assumption of Leases and the Termination Agreement duh, executed by Cite and. if applicable.. acknowledged: and No. 1. (iii) Option Agreement re Additional Parking for Project Sit,- 201.5 ite 201.5 Post -Closing Deliveries by Escrow. 16 DOCS I),-/] 706855e23/022363-001� (a) After the Close of Escrow. the Developer shall be delivered the following documents: (i) This Agreement and the Grant Deeds duly executed by the appropriate party or parties and recorded among in the Official Records. (ii) A non -foreign affidavit in a form reasonably acceptable to Developer. documents: Agreement. (iii) A conformed copy of the Declaration. (iv) A confonned copy of the Memorandum of Agreement. (v} A conformed copy of the Public Access Easement. (vi) A conformed copy of the Parking Easement Agreement. (vii) A conformed copy of the Bill of Sale. (viii) A conformed copy of the Historic Covenants. (ix) The Assignment of Contracts. (x) The Assignment and Assumption of Leases. (xi) The Termination Agreement. (b) After the Close of Escrom. City shall be delivered the following (i) The Purchase Price by wire transfer. (ii) A conformed copy of the recorded Grant Deeds and this (iii) The recorded original of the Purchase Money Deed of Trust. (iv) The Promissory Note. (v) The recorded original of the Declaration. (vi) The recorded original of the Memorandum of Agreement. (vii) A conformed copy of the Public Access Easement. (viii) A conformed copy of the Parking Easement Agreement. (ix) A conformed copy of the Bill of Sale. (x) A conformed copy of the Historic Covenants. 17 DOCSOC!1706855� 23/02236'-001 (xi) The recorded original of the request for notice of default. (xii) The Termination Agreement. (c) At Close of Escrow. the Cite and Developer shall each execute counterpart closing statements in customar. form together with such other documents as are reasonably necessary to consummate the Ciosing. 201.6 Payment of Escrow Costs. At Close of Escrow. both parties shall pay their respective costs by wire transfer, or by cashier's check drawn on a bank reasonably acceptable to the Escrow Agent. In the event of termination of this Agreement prior to the Close of Escrow due to failure of a condition set forth in Section 205. tite parties shall each be responsible for one-half of any Escrow cancellation costs. In the case of termination prior to the Close of Escrow due to a Default by one of the parties hereto, such defaulting pam, shall pay one hundred percent (100°ro) of all Escrow Cancellation Costs. 201.7 Termination Agreement. The Termination Agreement shall become effective upon the Closing. The parties shall account for prorations and amounts due outside of Escrow. 202. Review of Title. As of the Date of this Agreement, City shall cause First American Title Company of California. or another title company mutually agreeable to both parties (the "Title Company'), to deliver to Developer a preliminary title report (the "Title Report") with respect to the Property, together with legible copies of all documents underlying the exceptions ("Exceptions") set forth in the Title Report, along with an ALTA survey prepared by a California licensed surveyor under contract with and paid for by Developer ("ALTA Survey"). Developer shall have thirrt, (30 ) days from its receipt of the Title Report. the Exceptions and ALTA Survey within which to give written notice to Cin of Developer's approval or disapproval of any of such Exceptions. No deeds of trust, mortgages or other liens, except for the lien of property taxes and assessments not yet due. shall be approved Exceptions. If Developer notifies City of its disapproval of any Exceptions in the Title Report or ALTA Survey, City shall have thirty (30) days from City's receipt of such notification to advise Developer that it will use commercially reasonable efforts or provide assurances satisfactory to Developer that such Exception(s) will be removed on or before the Closing. If City does not provide assurances satisfactory to the Developer that such Exception(s) will be removed on or before the Closing. Developer shall have fifteen (15) days after the expiration of such fifteen (15) day period to either give the City written notice that Developer elects to proceed with the purchase of the Property. or any individual Project Site. subject to the disapproved Exceptions and conditions set forth in the ALTA Survey and conditioned upon the issuance of any endorsements necessary to render title acceptable to Developer). or to give the City written notice that the Developer elects to terminate this Agreement with respect to the Property, the City and Developer shall each be responsible for one-half of any Escrow cancellation charges and neither Developer nor City shall have anti further rights or obligations hereunder with respect to the property. or any individual Project Site, except as set forth in Section 307. The Developer shall have the right to approve or disapprove any Exceptions reported by the Title Company or conditions set forth on the ALTA Survey after Developer has approved the condition of title for the Propem in accordance with this Section 202. The foregoing periods of time shall be reasonably extended if any updates in the Title Report are provided to Developer after Developer approval of the Exceptions. City shall not voluntarily create any new exceptions to title following the Date of this Agreement, except for the recordation of documents in connection with the Closing as required herein. The 18 DOCSOC/t 706855v23/022363-001 Developer shall assume all non -delinquent assessments and taxes not specifically disapproved as provided herein. 203. Title Policies. At the Closing. the Title Company, as insurer, shall issue in favor of Developer, as insured, a separate CLTA owner's standard coverage policy or policies of title insurance with endorsements. if any, as mai: be required in Section 202 hereof with liability in an amount equal to the allocated Purchase Price for each Project Site ("CLTA Policy"). or, at Developer's option and expense (including without limitation the excess premium for an ALTA extended policy over the cost of a CLTA policy, plus the cost on an ALTA survey, an ALTA extended policy of title insurance and/or lender's policy of title insurance -with any endorsements and/or increased coverage amounts requested by Developer or its lender ("ALTA Policies and Endorsements") (collectively. the "Title Policies,), subject to the following: (a) All nondeliinquent general and special real property taxes and assessments for the current fiscal vear; and (b) If a CLTA policy is issued. the standard printed conditions and exceptions contained in the CLTA standard owner's policy of title insurance regularly issued by the Title Company. (c) The provisions of this Agreement, the Grant Deed, the Declaration, the Public Access Easement, the Parking Easement Agreement, and the Bill of Sale. (d} Any Exceptions to title approved by Developer pursuant to Section 202. The Title Policies shall be combined with a policy insuring the personal property (Eagle 9 policy from the Title Company) with tie-in endorsements to cover the full insurable. cost of the Project paid for by Developer. The Title Policies shall accord priority to instruments enumerated in Section 201.3(d) of this Agreement consistent with the order for recording as therein set forth. The Title Company. as insurer, shall issue in favor of City. as insured, an ALTA lender's Policy of title insurance as to the Purchase Money Deed of trust with liability in the original principal amount of the Promissory Note, which shall insure the Purchase Money Deed of Trust in a first position subject only to (i) all nondelinquent general and special taxes and assessments for the current fiscal vear, and (ii) such additional matters as shall be approved in writing by the City Manager or his designee ("City Loan Policy") 204. Studies, Reports. 204.1 Delivery of Property Documents. Prior to the Date of this Agreement. City has provided Developer with all information in City` s possession with respect to the environmental and physical condition of the Property and all contracts and other documents relating thereto. 204.2 Property Investigation. Representatives of the Developer and any prospective users. following execution of the Right of Entry Agreement.. shall have the right of access to the Property for the purpose of making necessary or appropriate inspections, including geological. soils and/or additional environmental assessments. If Developer determines that there are anv Recognized Environmental Concerns in. on, under or about anv Proiect Site. including the lg DOCSOC/ i 706855v23/022363-001 groundwater. or that the Property is or may be in violation of any Environmental Law, or that the condition of the Property is otherwise unacceptable to Developer. then the Developer shall notify the City and Escrow Holder prior to the Due Diligence Date. City and Developer shall thereafter have twenty (20) days to negotiate an agreement with respect to remediation of the Property. I£ at the end of such twenty (20) day period, Developer and City have not come to an agreement with respect to remediation of the property, Developer shall. within three (3) days thereafter notify Cit, of whether it elects to go forward with the acquisition of the property and pay all remediation costs, or whether it elects to terminate this Agreement with respect to the Project. in which event the Developer and City shall each be responsible for one-half of any Escrow cancellation charges and neither Developer nor Cite shall have any further rights or obligations hereunder except as set forth in Section 307. 204.3 As -Is Environmental Condition. Subject to the terms of this Agreement. if the Developer elects to proceed with Close of Escrow, the Property shall be conveyed to the Developer in an "as is" environmental condition. with no warrann', express or implied by the City. as to the condition of the Property. the soil. its geology. the Presence of known or unknown faults, the suitability of soils for the intended purposes or the presence of known or unknown Hazardous Materials or toxic substances ("Property Condition"). 204.4 Indemnities and Releases Re Hazardous Materials. (a) Developer Indemnity re Hazardous Materials. Developer shall Indemnify the Indemnitees from and against all Liabilities arising from, related in any respect to. or as a result of (i) the Presence of Hazardous Materials on the Property which Presence first occurred after the Date of this Agreement. and (ii) the Presence of Hazardous Materials on the Property. which Hazardous Materials were not Hazardous Materials at the Date of this Agreement, but became Hazardous Materials after the Date of this Agreement as a result of an amendment to. or interpretation of, the Environmental Law, provided. that none of the same were directly and proximately_ caused by City or any of its agents. employees or contractors. City shall cooperate with Developer to ensure that City has assigned to Developer any and all rights that City acquired in its acquisition of the Property or any portion thereof to permit Developer's prosecution of claims against any third parties who are potentially responsible for such Hazardous Materials. (b) Developer Release. Developer agrees to and hereby shall release the Indemnitees from and against all Liabilities arising from. related in any respect to, or as a result of (i) the Presence of Hazardous Materials on the Propem, that first existed on the Property as of the Date of this Agreement. but were discovered after the Date of this Agreement, and (ii) the Presence of Hazardous Materials on the Property, which Hazardous Materials were not identified and/or defined as such under the Environmental Laws as of the Date of this Agreement but became Hazardous Materials after the Date of this Agreement as a result an amendment to. or interpretation of the Environmental Law. Notwithstanding the foregoing. Developer is not releasing anv person or entit, other than the Indemnitees. (c) Notwithstanding anything to the contrary set forth in this Agreement. provisions of this Section 204 shall survive the Closing. 205. Conditions to Closing. The Closing is conditioned upon the satisfaction of the following terms and conditions, which the parties shall exercise their best efforts to satisA,. within the times designated below: 20 nocsoC1,7061'55,23/022363 001 205.1 City's Conditions Precedent. City's obligation to proceed with the Closing is subject to the fulfillment or waiver in writing by City of each and all of the conditions precedent (a) through (j), inclusive. described below ;'`:'iii -'z Conditions Precedent"). which are solely for the benefit of City. and which shall be fulfilled or waived by the time periods provided for herein: (a) No Default. Prior to the Close of Escrow. Developer shall not be in Default in any of its obligations under the terms of this Agreement. (b) Declaration: Public Access Agreement. The Declaration and the Public Access Agreement shall have been finalized by the parties hereto and shall be ready for recordation among Official Records. (c) Execution of Documents. The Developer shall have executed any documents required hereunder and delivered such documents into Escro'A . (d) Pavment of Funds. Prior to the Close of Escrow. Developer shall have paid the Purchase Price and all required costs of Closing into Escrow in accordance with Section 201.5 hereof. (e) Delivery of Moneys from Accounts. Developer shall have arranged for the transfer to City, concurrent with the Ciosing. of all moneys held in bans: accounts established by Manager under the Management and Operations Agreement. (f) Insurance. The Developer shall have provided proof of insurance as required by Section 306 hereof. (g) Declaration. The parties shall have mutually agreed upon the terms of the Declaration and the same shall be ready for recordation concurrently with the Close of Escrow. (h) Acquisition of the Property. The City has acquired the Propem . (i) DOF Approval. DOF Approval has been achieved. (j) Compensation Agreements. Ciry shall have entered into Compensation Agreements with affected taxing entities. 205.2 Developer's Conditions Precedent. Developer's obligation to proceed with the Closing is subject to the fulfillment or waiver by Developer of each and all of the conditions precedent (a) through (1:), inclusive. described below ("Developer's Conditions Precedent"). which are solely for the benefit of Developer. and which shall be fulfilled or waived by the time periods provided for herein: (a) No Default. Prior to the Close of Escrow. City shall not be in default in any of its obligations under the terms of this Agreement. (b) Execution of Documents. The Cin, shall have executed the Grant Deeds and any other documents required hereunder and delivered such documents into Escrom . (c) Review and Approval of Title. Developer shall have reviewed and approved the condition of title of the Property. as provided in Section 202 hereof. 21 DOCSOr/1706555,, 23/002363-001 (d) Propertv Condition. Developer shall have determined, in its sole and absolute discretion. and advised City- in writin« that the Property- Condition is satisfactory in accordance with Section 204 hereof. (e) Title Police. The Title Company shall. upon payment of Title Company's regularl-y scheduled premium. have agreed to provide to the Developer the Title Policy for the each of the Project Sites upon the Close of Escrow, in accordance with Section 20') hereof. (f) Acauisition of the Property. The City has acquired the Property. (g) DOF Approval. DOF Approval has been achieved. (h) Declaration. The parties shall have mutually agreed upon the terms of the Declaration and the same shall be ready for recordation concurrently with the Close of Escrow. (i) Compensation Agreements. City shall have entered into Compensation Agreements with affected taxing entities. (j) Acquisition Financing. Developer has secured Acquisition Financing. (k) Tenants and Others Claiming a Right of Possession. Except as to 559 South Anaheim Boulevard. the Property shall be free and clear of tenants and/or any other person or entity claiming a right to occupancy of any portion of the Property. 206. Relocation Obligations of Cite. 559 South Anaheim Boulevard is subject to a month to month lease. City has provided the tenant with a lease termination notice on June 12. 2015, which included a ninety (90) day notice to relocate. in the event that Escrow is in a position to close prior to the time that the tenant has vacated. then. in such event. Developer shall take the Property subject to the lease; provided. however, that the City shall cause the relocation of the tenant within one hundred eighty (180) days foliowing Closing and shall defend. indemnifi, and hold Developer harmless with respect to such relocation. In the event that the Closing occurs prior to the relocation of the tenant then Developer shall be entitled to receive all rent under the lease. prorated as of the date of Closing. City hereby represents and warrants that there are no common area maintenance charges. fees, assessments, prepaid expenses and/or prepaid rent under the lease. Except for the existing lease identified in the Assignment and Assumption Agreement. the Citywill be responsible for insuring that the Properties will be free and clear of any of the occupancies prior to Closing and will defend. indemnifi, and hold Developer harmless with respect thereto. 300. POST CONVEYANCE DEVELOPMENT OF EACH OF THE PROJECT SITES 301. Scope of Development. Developer shall develop Each Project Site in substantial conformance with the Conceptual Site Plan. Land Use Approvals and the Scope of Development.. within the time periods set forth in the Schedule of Performance. Once the Construction Drawings are approved by the City, Developer's obligations under this Agreement with respect to Development Improvements shall be construed in accordance with the Construction Drawings. Developer shall diligentiv improve each of the Project Sites with the Applicable Developer Improvements. DOCSOC/1706855\23/022363-0015 302. Design Revie-A,. The Developer Improvements shall be subject to Design Review by the City Manager in accordance with the Design Review Process within the timeframe set forth in the Schedule of Performance. 303. Land Use Approvals. Except to the extent otherwise expressly set forth herein, prior to commencement of construction of the Applicable. Developer Improvements upon Each Project Site, Developer shall, at its sole cost and expense. secure. subject to the exercise by the City of its sole and absolute discretion with respect to any and all land use approvals which the City may require for the construction and operation of the Applicable Developer Improvements, design review and/or anv other entitlements, permits or approvals required by any other governmental agency (the "Land Use Approvals"). Notwithstanding anything to the contrary herein. Developer and Civy acknowledge and agree that Developer shall prepare. at Developer's expense, and process all documentation required by the California Environmental Quality Act ("CEQA") with respect to the Proiects. Costs of any Project related on-site (as described in the Scope of Development) CEQA mitigation shall be borne by Developer. =Developer acknowledges that compliance with anv_ such CEQA mitigation shall be a condition under applicable law for proceeding with the Projects. By its execution of this Agreement. the City is not committing itself to or agreeing to undertake anv Land Use Approvals or any other acts or activities requiring the subsequent independent exercise of discretion by the City, the City Council, the Planning Commission or any department of the City. The City reserves final discretion and approval as to any and all Land Use Approvals and all proceedings and decisions in connection therewith. 304. Schedule of Performance. In addition to compliance with the Schedule of Performance with respect to the Conveyance described in Section 200, Developer shall submit the Construction Drawings, commence and Complete all construction of the Developer Improvements, and satisfy all other obligations and conditions of this Agreement which are the obligation of Developer within the times established therefore in the Schedule of Performance. The Schedule of Performance is subject to revision from time -to -time as mutually agreed upon in writing b,,,- Developer yDeveloper and the City Manager. 305. Cost of Construction. All of the cost of planning. designing. developing and constructing all of the Developer Improvements, including but not Iur led to the securing of Land Use Approvals, permits, and entitlements of any kind, compliance with any and all environmental laws and regulations, and payment or other satisfaction of development impact fees payable in connection with the Developer Improvements, shall be borne solely by Developer. 306. Insurance Coverage. Prior to the earlier to occur of (i) the Developer's exercise of a Right of Entry under the Right of Entry Agreement, or (ii) the Closing (the "Insurance Date"). the Developer shall secure from a company or companies licensed to conduct insurance business in the State of California, pay for, and maintain in full force and effect from and after the Close of Escrow. and continuing for the duration of this Agreement, a policy of commercial general liability insurance issued by an "ANF or better rated insurance carrier as rated by A.M. Best Company as of the date that Developer obtains or renews its insurance policies, on an occurrence basis. in which the Cin and its officers. employees, agents and representatives are named as additional insureds with the Developer. Developer shall furnish a certificate of insurance to the City prior to the Close of EscrovA . and shall furnish complete copies of such policy or policies upon request by the City. Notwithstanding any inconsistent statement in the policy or any subsequent endorsement attached hereto, the protection offered by the policy shall: 23 1DOCSOC/1 706855v23/022363-00? 5 (a) Include an endorsement naming the City, its officers, employees, agents, representatives and attorneys as additional insureds_ (b) Provide a combined single limit policy for both personal injury and property damage in the amount of $2,000_.000. which will be considered equivalent to the required minimum Limits: (c) Bear an endorsement or shall have attached a rider providing that the City shall be notified not less than thim, (30) days before any expiration, cancellation. nonrenewal, reduction in coverage, increase in deductible. or other material modification of such policy or policies, and shall be notified not less than ten (10) days after any event of nonpayment of premium. The Developer shall also file with the City the following signed certification: I am aware of: and will comply with, Section 3700 of the Labor Code, requiring every employer to be insured against liability of Workers' Compensation or to undertake self-insurance before commencing any of the work. The Developer shall comply with Section 3800 of the Labor Code by securing, paying for and maintaining in full force and effect from and after the Close of Escrow, and continuing for the duration of this Agreement, complete Workers' Compensation Insurance, and shall furnish a Certificate of Insurance to the City before the commencement of construction of any Project. The City. its officers, employees, agents, representatives and attorneys shall not be responsible for any claims in law or equity occasioned by the failure of Developer to comply with this section. Every Workers' Compensation insurance policy shall bear an endorsement or shall have attached a rider providing that. in the event of expiration. proposed cancellation. or reduction in coverage of such policy for any reason whatsoever, the City shall be notified, giving the Developer a sufficient time to comply with applicable law, but in no event Iess than thirty (30) days before such expiration, cancellation. or reduction in coverage is effective or ten (10) days in the event of nonpayment of premium. 306.2 Policy Provisions. A certificate or certificates evidencing coverage described in subsections (a) through (c) above (the ";Insurance") shall be submitted to the City prior to issuance of building permits for and commencement of the construction of the Applicable Developer Improvements, which certificates shall be accompanied by appropriate policy endorsements stating that: (a) The Insurance shall be primary insurance for Losses at each of the Project Sites. and will be noncontributing with respect to any other insurance carried by Developer or its contractor(s) with respect to any losses which do not arise out of the construction of Applicable Developer Improvements. and any other insurance carried by the Cin, which may be applicable shall be deemed to be excess insurance and the Insurance shall be primary for all purposes despite any conflicting provision in the Insurance to the contrary - (b) Not less than ten (10) days advance notice shall be given in writing to the City prior to any material change. cancellation, termination, non -renewal. or reduction in coverage of the Insurance: 24 DOCSOC/1 706E55N723/022363-001 306.3 Mutual Waivers. Except as otherwise set forth in Section 307 hereof, City and Developer hereby waive any rights each may have against the other, on account of any loss or damage occasioned to Citv and any additional insured parties and Developer. as the case may be, or the Property, arising from any loss generail}- covered by all-risk insurance: and the parties each. on behalf of their respective insurance companies insuring the Propem of either City and Developer against any such loss, waive any right of subrogation that such insurer or insurers may have against City and Developer. as the case may be. The foregoing mutual waivers of subrogation shall be mutually operative only so long as available in the state in which the Property is situated and provided further that no such policy is invalidated thereby. 307. Developer's Indemnit3,. Except as set forth in Section 204.2 with respect to Hazardous Materials, Developer or, if applicable. any Permitted Assignee shall Indemnify (with one (1) counsel reasonably acceptable to the City. unless there is a conflict of interest by, among or between any of the Indemnitees. whether individuals or entities in which case separate counsel shall be provided by Developer for each such Indemnitee) the Indemnitees from and against any and all Liabilities which result from the performance of this Agreement by Developer or Developer's ownership, development, use, or operation of the Applicable Project Site thereof excepting those Liabilities which are caused by the Indemnitees' (or any of them) gross negligence or willful misconduct. The City and Developer agree to fully cooperate with one another in anv case where no conflict of interest between the parties is apparent. Without limiting the generality of the foregoing, Developer specifically agrees to indemnif}'. defend and hold harmless Indemnitees from any Liabilities resulting from Developer's failure to comply with all applicable laws in accordance with Section 309 hereof. 308. Rights of Access. Subject to reasonable prior notice and subject to reasonable rules as may be imposed by Developer in connection therewith. Representatives of the City shall have the riallt of access to the Propem. without charges or fees, at normal construction hours during the period of construction for the purposes of this Agreement, including but not limited to, the inspection of the work being performed in constructing the Applicable Developer Improvements and so long as City representatives comply with all safety rules and do not unreasonably interfere with the work of Developer. City shall defend. indemnify, assume all responsibility for and hold the Developer harmless from and against any and all third party liabilities. suits, actions, claims, demands, penalties, damages (including. without limitation, penalties.. fines and monetary sanctions), losses, costs or expenses (including, without limitation, consultants' fees. and reasonable attorneys' fees of any kind or nature and for any damages, including damages to propem or injuries to persons, including accidental death (including reasonable attorneys' fees and costs), which result from the exercise of such entry. 309. Compliance with Governmental Requirements. Developer shall carry out the design, construction and operation of the Project in conformity with all Governmental Requirements. 309.1 Nondiscrimination in Employment. Developer certifies and agrees that all persons emploved or applying for employment by it. its affiliates, subsidiaries, or holding companies. and all subcontractors. bidders and vendors. with respect to the construction and operation of the Projects. are and will be treated equally by it without regard to. or because of race, color. religion.. ancestry, national origin, sex. age. pregnancy. childbirth or related medical condition, medical condition (cancer related) or physical or mental disability.. and in compliance with Title VII of the Civil Rights Act of 1964, 42 U.S.C. Sections 2000.. et seq.. the Federal Equal Pay Act of 1963. 29 U.S.C. Section 206(4), the Age Discrimination in Employment Act of 1967. 29 U.S.C. Sections 621. DOCSOC/; 7068»v23/022363-001 5 et seq., the Immigration Reform and Control Act of 1986, 8 U.S.C. Sections 13124b. et seq.. 42 U.S.C. Section 1981. the California Fair Employment and Housing Act. California Government Code Sections 12900, etseq.. the California Equal Pal- Law. California Labor Code Sections 1197.5, California Government Code Section I 1135. the Americans with Disabilities Act. 42 U.S.C. Sections 12101. et seq., and all other anti -discrimination laws and regulations of the United States and the State of California as they now exist or may hereafter be amended. Developer shall allow representatives of the City access to its employment records related to this Agreement during regular business hours at Developer's principal office in Anaheim. California to verlfi, compliance with these provisions when so requested by the City. 310. Release of Construction Covenants. Following Completion of the Applicable Developer Improvements in conformity with this Agreement and within thim, (30) calendar days following receipt of a written request froin Developer, the City shall furnish Developer with a Release of Construction Covenants for the Completed Applicable Developer Improvements. The City shall not unreasonably withhold or delay such Release of Construction Covenants. The Release of Construction Covenants shall be conclusive determination of satisfactory Completion of the Applicable Developer Improvements and the Release of Construction Covenants shall so state. Any party then owning or thereafter purchasing, leasing or otherwise acquiring any interest in the Applicable Project Site shall not (because of such ownership, purchase, lease or acquisition) incur any obligation or liability under this Agreement except for the Covenants. If the City refuses or fails to furnish the Release of Construction Covenants for the Applicable Project Site after written request from Developer. the City shall, within thirty (30) worK'I'n,o days of receiving such written request, provide Developer with a written statement setting forth the reasons the City has refused or failed to furnish the Release of Construction Covenants for the Applicable Project Site. The statement shall also contain a list of the actions Developer must take to obtain a Release of Construction Covenants, which list shall be based on the requirements set forth in the Construction Documents. If the reason for the City's refusal to issue the Release of Construction Covenants is due to lack- of avaiiabilitv of specific iands-cape and/or finish materials, the Developer may provide a completion bond reasonably acceptable to the City, in which case the Developer shall thereby become entitled to the Release of Construction Covenants. Such Release of Construction Covenants shall not constitute evidence of compliance with or satisfaction of any obligation of Developer to any holder of any mortgage. or any insurer of a mortgage securing money loaned to finance the Applicable Developer Improvements. or ant part thereof. Such Release of Construction Covenants is not a. notice of cornpietion as referred to in the California Civil Code, Section 3093. 26 DOCSOC/1 706855\ 23/022363-001 311. Rights of Holder and City under Construction Financing. 311.1 Holder Not Obligated to Construct Applicable Developer Improvements. The holder of any mortgage or deed of trust securing Construction Financing (a "Holder") shall not be obligated by the provisions of this Agreement to construct or Complete the Applicable Developer Improvements or any portion thereof. or to guarantee such construction or Completion; nor shall any covenant or any other provision in this Agreement be construed so to obligate such Holder. Nothing in this Agreement shall be deemed to construe.. permit or authorize any such Holder to devote the Property to any uses or to construct any improvements thereon, other than those uses or Applicable Developer Improvements provided for or authorized by this Agreement. 311.2 Notice of Default to Mortgagee or Deed of Trust Holders, Right to Cure. With respect to any mortgage or deed of trust securing Construction Financing. whenever the City delivers any notice of default ("Notice of Default') or demand to Developer with respect to any Breach or Default by Developer in the construction of the Applicable Developer Improvements. and if Developer fails to cure the Default within the time set forth in Section 501, the City shall deliver to each Holder of record a copy of such notice or demand. Each such Holder shall (insofar as the rights granted by the City are concerned) have the right, at its option. within sixty (60) days after the receipt of the notice. to cure or remedy or commence to cure or remedy and thereafter to pursue with due diligence the cure or remedy of anv such Default and to add the cost thereof to the mortgage debt and the lien of its mortgage; provided, however if the Holder is legally prevented from curing such default because of a bankruptcy by the Developer or because such cure requires physical possession of the Property then the sixtti (60) day period shall be tolled until such bankruptcy is confirmed. rejected or otherwise resolved or the Holder has obtained lawful physical possession of the Propem". Nothing contained in this Agreement shall be deemed to permit or authorize such Holder to undertake or continue the construction or Completion of the Applicable Developer Improvements. or anv portion thereof (beyond the extent necessary to conserve or protect the improvements or construction already made) without first having expressly assumed Developer's obligations to the City by written agreement reasonably satisfactory to the Cite which election to assume may be made within ninety (90) days following Holder's securing of title to the Property. Such assumption shall not have the effect of causing the Holder to be responsible for any prior damage obligations of Developer to the City. The Holder, in that event. must agree to Complete. in the manner provided in this Agreement. the Applicable Developer Improvements. Any such Holder properly Completing the Applicable Developer Improvements shall be entitled, upon compliance with the requirements of Section 310 of this Agreement. to a Release of Construction Covenants. It is understood that a Holder shall be deemed to have satisfied the sixty (60)day time limit set forth above for commencing to cure or remedy a Deveioper Breach which requires title and/or possession of the Property (or portion thereof) if and to the extent any such Holder has within such sixty (60) day period commenced foreclosure proceedings to obtain title and/or possession and thereafter the Holder diligently pursues such proceedings to completion and cures or remedies the default. 311.3 Failure of Holder to Complete Applicable Developer Improvements. in anv case where. sixty (60) days after the Holder receives a Notice of Default by Developer in Completion of Applicable Developer improvements under this Agreement. and the Holder has not exercised the option to construct as set forth in Section 311.3. or if it has exercised the option but has defaulted thereunder- and failed to timely cure such default, the City may. by giving written notice to the Holder, purchase the mortgage or deed of trust by payment to the Holder of the amount of the unpaid mortgage or deed of trust debt. including principal and interest and all other sums secured by the mortgage or deed of trust. If the ownership of the Property or any part thereof has vested in the DOCSOC/ 17068 5\'=3/02363-0015 Holder, the City, if it so desires. shall be entitled to a conveyance of title to the Property or such portion thereof from the Holder to the CAN, upon payment to the Holder of an amount equal to the sum of the following: (a) The unpaid mortgage or deed of trust debt at the time title became vested in the Holder (less all appropriate credits, including those resulting from collection and application of rentals and other income received during foreclosure proceedings): (b) All expenses with respect to foreclosure including reasonable attornevs' fees: (c) The net expense. if any (exclusive of general overhead). incurred by the Holder as a direct result of the subsequent management of the Property or part thereof, (d) The costs of any Applicable_Developer Improvements made by such Holder: (e) Any prepayment charges. default interest, and/or late charges imposed pursuant to the loan documents and agreed to by Developer:. and (f) An amount equivalent to the interest that would have accrued on the aggregate of such amounts had all such amounts become part of the mortgage or deed of trust debt and such debt had continued in existence to the date of payment by the Cite. 311.4 Dight of the City to Cure Mortgage or Deed of Trust Default. In the event Developer receives a notice of default on anv mortgage or deed of trust securing Construction Financing prior to the Completion of the Applicable Developer Improvements and issuance of a Release of Construction Covenants and all Projects, Developer shall immediately deliver to the City a cope of such notice of default. If the Holder of anv mortgage or deed of trust securing Construction Financing has not exercised its option to construct. the Cit< shall have the right but not the obligation to cure the default. The City shall be entitled to reimbursement from Developer of all proper costs and expenses incurred by the City in curing such default. The City shall also be entitled to a lien upon the Property to the extent of such costs and disbursements, subordinate to the lien securing the Construction Financing. 312. Parking Easement Agreement for Project Site No. 3. Project Site No. 3 is planned for mixed residential and commercial uses. Current parking requirements for residential uses are i-1/2 spaces per residential unit with at least one space per residential unit on site. Parking requirements for commercial uses are 3.8 spaces per 1.000 sq. ft. of gross leaseable area. Parking requirements for a hotel is .8 spaces per room and .25 spaces per hotel employee. Except as to the one space per residential unit required to be constructed and available on site. the Parking Easement Agreement for Project Site No. 3 shall provide for the nonexclusive use by the Project for Project Site No. 3 of sufficient parking to accommodate the land use requirements of the City of ,Anaheim within CarPark 3. CarPark 4. CarPark 5. CarPark 6. and/or CarPark 7. as determined by the Cin- in its sole and absolute discretion. Developer shall pay its pro rata share of operation and maintenance for the allocated parking spaces based on the formula utilized for the applicable CarPark. 28 DOCSOC/I706855%,23/022363-0015 313. Covenants Survive Closing. i`iotwithstanding anything to the contrary set forth in this Agreement, the provisions of this Article 300 ,along with the remaining Surviving Covenants) shall survive the Closing. 314. Treatment of Moneys from Certain Accounts: Termination of Management and Operations Agreement. Developer shall cause the transfer to City concurrent with the Closing of all moneys held in bank accounts established by Manager under the Management and Operations Agreement and close such accounts. Developer shall also deliver to Cite and Successor Agency conclusive evidence that Manager agrees to the termination of the Management and Operations Agreement concurrent with the Closing subject to the provisions of this Section 314. Citv will retain the moneys delivered to it under to this Section 314 pending an accounting, which shall be accomplished at Developer's cost, regarding such moneys: to the extent the Manager would be entitled to receive moneys under the Management and Operations Agreement for undertakings which occurred prior to the Closing. as reasonably detennined by the City Manager following consultation with Developer, City will, in conjunction with the Successor Agency, reserve such moneys for payment to Developer or Manager. Funds will be disbursed to Developer or Manager only after completion of such accounting and following receipt by City Manager of a statement by each of Manager and Developer consenting that one or the other is to receive payment. Where a payment is based upon services provided over a period of time, payment will be prorated to account for the Closing. Subject to the foregoing portion of this Section 314, including without limitation the tendering of monevs to City and the closing of bank accounts, the Management and Operations Agreement will be deemed terminated: provided that agreements. if any, entered into by Manager with third parties under the Management and Operations Agreement shall be deemed to survive. but neither Citv nor Successor Agency shall have any obligations or responsibilities thereunder. 400. COVENANTS AND RESTRICTIONS 401. Covenant to Develop, Use and Operate the Property in Accordance with the Land Use Approvals and this Agreement. For a period of twenty (20) years from the later of (i) the Date of this Agreement or (iii) Completion of the Applicable Project. Developer covenants and agrees for itself and its successors, assigns. and every successor in interest to the Property or any part thereof that Developer and such successors and assignees, shall use and operate the Applicable Project in accordance with the Land Use Approvals. and this Agreement, and.. except for a Holder who, pursuant to Section 311. has not elected to assume Developer's obligations hereunder to construct, shall construct and Complete the Applicable Developer Improvements on the Applicable Project Site in accordance with the Land Use Approvals. the Scope of Development. Section 301.1, and the Schedule of Performance. 401.1 Historically Significant Buildings. The Packing House. Burns House. and Packard Building are historically significant buildings and. therefon shall be required to continue to meet the standards of the U. S. Secretary of Interior for such historically significant buildings in accordance with the Historic Covenants. The MAKE Building is included in the "Citywide Historic Preservation Plan" and shall therefor be restored. maintained. and preserved in accordance with such plan. In the event that Developer chooses to modify any of these historic buildings for any purpose. the Citv has the right to review and approve plans and materials. Any such modifications, except as to the MAKE Building, must be consistent with the United States Secretan of the Interior's 2q DOCSOC/1706855Nr23/022363-0015 Standards for the Treatment of Historic Properties in accordance with the Guidelines for Preserving. Rehabilitating, and Restoring Historic Buildings and the Historic Covenants. 402. Maintenance and Security Covenants. Developer covenants and agrees for itself, its successors and assigns and any successor in interest to the Property or part thereof to maintain. at Developer's sole cost and expense, the Properry and all Developer Improvements thereon. in compliance with the terms of the Declaration, and with all applicable Governmental Requirements. The operation. use. security and maintenance of the Property. shall be accomplished in accordance with the Declaration, consistent with other similar projects in Orange County, and shall include regular landscape maintenance, graffiti removal. and trash and debris removal. 403. Nondiscrimination. The Developer covenants by and for itself and any successors in interest that there shall be no discrimination against or segregation of any person or group of persons on account of race. color. creed, religion. sex. marital status, physical or mental disability or medical condition. national origin or ancestn• in the sale, lease. sublease, transfer. use, occupancy, tenure or enjoyment of the Developer Improvements or the Property, nor shall the Developer itself or an-- person claiming under or through it establish or permit any such practice or practices of discrimination or segregation with reference to the selection. location. number, use or occupancy of tenants, lessees, subtenants.. sublessees or vendees of the Projects or the Property. The foregoing covenants shall run with the land. All deeds, leases or contracts with respect to the Project or the Property shall contain or be subject to substantially the following nondiscrimination or nonsegregation clauses: a. In deeds: "The grantee herein covenants by and for himself or herself. his or her heirs. executors, administrators, and assigns. and all persons claiming under or through them, that there shall be no discrimination against or segregation of any person or group of persons on account of anv basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926. 12926.1. subdivision (m) and paragraph (1) of subdivision (p) of Section 12955. and Section 12955.2 of the Government Code. in the sale. lease. sublease. transfer, use. occupancy, tenure. or enjoyment of the premises herein conveyed. nor shall the grantee or any person claiming under or through him or her, establish or pen -nit any practice or practices of discrimination or segregation with reference to the selection. location. number. use or occupancy of tenants. lessees.. subtenants. sublessees_. or vendees in the premises herein conveyed. The foregoing covenants shall run with the land." "Notwithstanding the immediately preceding paragraph. with respect to familial status. the immediately preceding paragraph shall not be construed to apply to housing for older persons, as defined in Section 12955.9 of the Government Code. With respect to familial status. nothing in the immediately preceding paragraph shall be construed to affect Sections 51.2. 51.3. 51.4. 51.10. 51.11. and 799.5 of the Civil Code. relating to housing for senior citizens. Subdivision (d) of Section 51 and Section 1360 of the Civil Code and subdivisions (n). (o), and (p) of Section 12955 of the Government Code shall apply to the immediately preceding paragraph." b. In leases: "The lessee herein covenants by and for himself or herself itis or her heirs. executors; administrators. and assigns. and all persons claiming under or through him or her. and this lease is made and accepted upon and subject to the following conditions: 30 DOCSOC71706855N 23/022363-001 "That there shall be no discrimination against or segregation of any person or group of persons. on account of ani- basis listed in subdivision (a) or (d) of Section 12955 of the Government Code. as those bases are defined in Sections 12926, 12926.1. subdivision (m) and paragraph (1) of subdivision (p) of Section 12955. and Section 12955.2 of the Government Code, in the leasing. subleasing, transferring. use, occupancy, tenure; or enjoyment of the premises herein leased nor shall the lessee himself or herself, or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection. location, number, use. or occupancy, of tenants, lessees, sublessees, subtenants, or vendees in the premises herein leased." "Notwithstanding the immediately preceding paragraph. with respect to familial status, the immediately preceding paragraph shall not be construed to apply to housing for older persons, as defined in Section 12955.9 of the Government Code. With respect to familial status. nothing in the immediately preceding paragraph shall be construed to affect Sections 51.1 51.3. 51.4, 51.10, 51.11. and 799.5 of the Civil Code. relating to housing for senior citizens. Subdivision (d) of Section 51 and Section 1360 of the Civil Code and subdivisions (n), (o), and (p) of Section 12955 of the Government Code shall apply to the immediately preceding paragraph." C. In contracts: "There shall be no discrimination against or segregation of any person or group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer. use, occupancy, tenure, or enjoyment of the premises which are the subject of this Agreement, nor shall the grantee or anv person claiming under or through him or her, establish or permit any practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the premises herein conveyed. The foregoing covenants shall run with the land." 404. Point of Sale and/or Use. The Developer, for itself and for its general contractor and subcontractor, agrees to obtain a State Board of Equalization sub -permit for the jobsite and allocate all eligible use tax payments to the City and provide the City with either a copy of the sub -permit or a statement that the use tax does not apply to this portion of the job. to insure that the City is the point of sale and/or use under the Bradley Burns Uniform Local Sales and Use Tax Law (commencing with Section 7200 of the Revenue and Taxation Code, as amended from time to time). 405. Effect of Violation of the Terms and Provisions of this Agreement. The City is deemed the beneficiary of the terms and provisions of this Agreement and of the Declaration and the Surviving Covenants, for and in its own right and for the purposes of protecting the interests of the 31 DOCSOC/1706855v23/022363-001 community and other parties, public or private, in whose favor and for whose benefit this Agreement, the Declaration and the Surviving Covenants have been provided, without regard to whether the City has been, remains or is an owner of any land or interest in the Property. The City shall have the right (subject to Section 501 below). upon a Default, by Developer of this Agreement, to exercise all rights and remedies, and to maintain any actions or suits at lava or in equity or other proper proceedings to enforce the curing of such breaches to whici? it or any other beneficiaries of this Agreement. the Declaration and the Surviving Covenants may be entitled. The Covenants contained in Sections 103, 401, and the Declaration shall remain in effect in accordance with their respective terms. The Covenants contained in Sections 204.3, 204.4. 307. 309, 401.1, 402, 403. and 603 shall remain in effect in perpetuity. The Covenants described in Sections 301, 304. 305, 306, 308. and 503 shall remain in effect until the issuance of a Release of Construction Covenants and so long thereafter as shall be necessary to enforce a Default(s) thereunder. 406. Covenants Survive Closing. Notwithstanding anything to the contrary set forth in this Agreement, the provisions of this Article 400 (without Iimitation as to the remaining Surviving Covenants) shall survive the Closing. 500. DEFAULTS AND REMEDIES 501. Default Remedies. Subject to Enforced Delay and compliance with the provisions of this Agreement which provide for the protection of Mortgagee rights, including the provisions of Section 311 of this Agreement, failure or delay by either partto perform any material term or provision of this Agreement (a "Breach") following notice and failure to cure as described hereafter constitutes a "Default" under this Agreement. The nondefaulting party shall give written notice of any Breach to the party in Breach. specifying the Breach complained of by the nondefaulting party ("Notice of Default"). Delav in giving such Notice of Default shall not constitute a waiver of any Breach nor shall it change the time of Breach. Upon receipt of the Notice of Default, the party in Breach shall promptly commence to cure the identified Breach at the earliest reasonable time after receipt of the Notice of Default and shall complete the cure of such Breach not later than thirty (30) days after receipt of the Notice of Default, or. if such Breach cannot reasonablv be cured within such thirty- (30) day period, then as soon thereafter as reasonably possible, provided that the party in Breach shall diligently pursue such cure to completion("Cure Period"). Failure of the party in Breach to cure the Breach within the Cure Period set forth above shall constitute a "Default" hereunder. Any failures or delay by either party in asserting any of its rights and remedies as to any Breach or Default shall not operate as a waiver of any Breach or Default or of any such rights or remedies. Delays by either party in asserting any of its rights and remedies shall not deprive either party of its right to institute and maintain any actions or proceedings which it may deem necessary to protect, assert or enforce any such rights or remedies. 502. Institution of Legal Actions. In addition to anv other rights or remedies and subject to the restrictions otherwise set forth in this Agreement, any party may institute an action at law or equity to seek specific performance of the terms of this Agreement. or to cure, correct or remedy any, Default. to recover damages for any Default, or to obtain any other remedy consistent with the purpose of this Agreement. Such Legal actions must be instituted in the Superior Court of the Count-\,- of ounty of Orange, State of California, in an appropriate municipal court in that county, or in the United States District Court for the Central District of California. 32 DOCSOC/1706855e23/022363-0015 503. Re-entry and Revesting of Title in the City. 503.1 After the Closing and Prior to Recordation of Construction Financing. The Citv has the right, at its election, to re-enter and take possession of the Applicable Project Site(s) (Project Site No. 2, Preject No. 3 and/or Project Site No. 4 only.) and terminate and Revest in the City the estate conveved to the Developer of the Applicable Project Site if, after the Closing and prior to the recording of Construction Financing on the Applicable Project Site (i.e., Project Site No. 2. Project Site No. 3, and/or Project No. 4 only), Developer fails to start the Construction of the Applicable Developer Improvements as required by this Agreement for a period of ninety (90) days after Notice thereof from the Cin,, subject to extension pursuant to Section 602, upon the following payment to the Developer: Project Site No. 22 $1,000.000 Project Site No. 3 $1.000.000 Project Site No. 4 81,000.000 503.21 After Recordation and Fundinc, of Construction Financing. Without limiting the rights as set forth in Section 311. 501, 502 and without affecting the priority of the lien of the Holder's deed of trust or mortgage. the Civy, has the right. at its election, to reenter and take possession of the Applicable Project Site(s) with all Applicable Developer Improvements thereon, and terminate and Revest in the City the estate conveyed to the Developer only if after the recordation and funding of Construction financinc, and prior to the issuance of the final Release of M Construction Covenants, the Developer (or its successors in interest) shall: (a) fail to start the construction of the Applicable Developer Improvements as required by this Agreement for a period of ninety (90) days after Notice thereof from the City subject to extension pursuant to Section 602: or (b) abandon or substantially suspend construction of the Applicable Developer Improvements required by this Agreement for a period of ninety ('90) days after Notice thereof from the City subject to extension pursuant to Section 602or (c) contrary to the provisions of Section 103 hereof. Transfer or suffer any involuntary Transfer in violation of this Agreement. and such Transfer, if it is a Transfer requiring approval by the Cite. is not rescinded within thirty (3 0) days of Notice thereof from City to Developer. Such right to reenter, terminate and Revest is subject to the quiet enjoyment, and, if applicable, the right to continue to Complete construction by (1) tenants or other occupants who have (a) -executed leases or subleases and (b) incurred substantial expenses in connection with the design and/or construction of improvements required to be constructed by such tenant under such lease or sublease and (ii) Developer, in the case where the Developer is in Default and. vis a vis a Holder or its Nominee, shall be exercisable only if: 1. Such Holder (or its Nominee) (a) shall have failed to cure any Default within the applicable cure periods -granted to such Holder (or its Nominee). or (b) shall have given City written notice that it will not cure any such Default or condition or that it will otherwise not comply with the terms and conditions of this Agreement. and 33 DOCSOC/I 706855Q3/022363-0015 2. City, within ninety (90) days after the occurrence of any events described in subparagraph 1. immediately above, shall commence the exercise of its Right of Entry and shall pay to Holder (or its Nominee) in immediately avallabie funds, the Loan Balance prior to Revesting. In the event of a failure or refusal to cure a Default, as described in subparagraph 1. above, City's sole remedy vis a vis Holder shall be the exercise of the re-entry right and Revesting in accordance herewith. The conditions to the commencement of the exercise of the Cln"'s right to re-enter and Revest as described above shall be applicabie whether the re-entry and Revesting occurs (a) prior to foreclosure (or deed in lieu of foreclosure) by the Holder (or its Nominee) under its mortgage or deed of trust: or (b) after Holder (or its Nominee) acquires title to the Property by foreclosure (or deed -in -lieu of foreclosure) under its mortgage or deed of trust. The Applicable Grant Deed shall contain appropriate reference and provision to give effect to the City's right as set forth in this Section 503, under specified circumstances prior to recordation of the Release of Construction. Covenant, to reenter and take possession of the applicable Project Site. with all improvements thereon. and to terminate and Revest in the City the estate conveyed to the Developer. Upon the Revesting in the Cite of title to the Property, as provided in this Section 503, the City shall, pursuant to its responsibilities under state law, use its reasonable efforts to resell the Property, as soon and in such manner as the City shall find feasible and consistent with the objectives of such law, as it exists or may be amended, to a qualified and responsible party or parties (as detertnined by the City) who will assume the obligation of constructing or Completing the Applicable Developer Improvements, or such improvements in their stead as shall be satisfactory to the City in its sole and absolute discretion. (i) First, to reimburse the City. on its own behalf or on behalf of the City, all costs and expenses incurred by the City. excluding City staff costs, but specifically. including, but not limited to.. any expenditures by the Cit<in connection with the recapture., management and resale of the Property (but less any income derived by the Cit}' from the applicable Project Site. or part thereof in connection with such management); all taxes, assessments and water or sewer charges with respect to the applicable Project Site. or part thereof which the Developer has not paid (or. in the event that the applicable Project Site is exempt from taxation or assessment of such charges during the period of ownership thereof by the City. an amount. if paid, equal to such taxes.. assessments, or charges as would have been payable if the applicable Project Site were not so exempt); any payments made or necessary to be made to discharge any encumbrances or liens existing on the applicable Project Site at the time or Revesting of title thereto in the City, or to discharge or prevent from attaching or being made any subsequent encumbrances or liens due to obligations, defaults or acts of the Developer, its successors or transferees; any expenditures made or obligations incurred with respect to the constructing or Completion of the Applicable Developer Improvements or any part thereof on the applicable Project Site: and any amounts otherwise owing the City. and in the event additional proceeds are thereafter available, then (ii) Second. to reimburse the Developer. its successor or transferee. up to the amount equal to the sum of (a) actual and direct third pam, costs incurred by the Developer for the Applicable Developer Improvements existing on the Applicable Project Site. at the time of the re-entry and possession, less (b) any gains or net income received by the Developer from the Property. or the improvements thereon. 34 DOCSOC/1706855v23/022363-0015 Any balance remaining after such reimbursements shall be retained by the City as its propem . The rights established in this Section 503, except as may otherwise be provided in this Section 503. are not intended to be exclusive of anv other right, power or remedy. but each and ever such right, power. and remedy shall be cumulative and concurrent and shall be in addition to any other right, power and remedy authorized Herein o- now or hereafter existing at law or in equity. These rights are to be interpreted in light of the fact that the City will have conveyed the Site, to the Developer for development purposes, and not for speculation in undeveloped land. City hereby agrees to execute a recordable Intercreditor Agreement reflecting the terms of Section 311 and this Section 503 at the request of any Construction Lender 504. Rights and Remedies Are Cumulative. Except as otherwise expressly stated in this Agreement, the rights and remedies of the parties are cumulative, and the exercise by either parry of one or more of such rights or remedies shall not preclude the exercise by it. at the same or different times. of any other rights or remedies for thz same default or any other default by the other pam . 505. Inaction Not a Waiver of Default. Any failures or delays by either part in asserting any of its rights and remedies as to any Default shall not operate as a waiver of anv Default or of any such rights or remedies, or deprive either such party of its right to institute and maintain any actions or proceedings which it may deem necessary to protect. assert or enforce any such rights or remedies. 506. Applicable Lave. The laws of the State shall govern the interpretation and enforcement of this Agreement. 507. Covenants Survive Closing. Notwithstanding anvthing to the contrary set forth in this Agreement, the provisions of this Article 500 (without limitation as to the remaining Surviving Covenants) shall survive the Closing. 600. GENERAL PROVISIONS 601. Notices, Demands and Communications Between the Parties. Any approval, disapproval. demand. document or other notice ("Notice") required or permitted under this Agreement must be in writing and shall be sufficiently given if delivered by hand (and a receipt therefore is obtained or is refused to be givens or dispatched by registered or certified mail, postage prepaid, return receipt requested, or delivered by telecopy, or email or overnight delivery service to: To Citv: City of Anaheim 200 South Anaheim Boulevard. Seventh Floor Anaheim. California 92805 Attention: City Manager With copies to: Cite of Anaheim 200 South Anaheim Boulevard. Second Floor Anaheim. California 92805 Attention: Circ, Clerk DOCSOC/1706855e23/022363-001 Community Development Department 201 South Anaheim Boulevard. I 01 Floor Anaheim. California 92805 Attention: John E. Woodhead RT. Executive Director with a copy to: Stradiin{a. Y occa. Carlson & Rauth 660 Newport Center Drive, Suite 1600 Newport Beach, California 92660 Attention: Thomas P. Clark, Jr. To Developer: Lab Holding, LLC 709 Randolph Avenue Costa Mesa. California 92626 Attention: Shaheen Sadeahi with a copy to: Allen Matkins Leek Gamble Mallory & Natsis LLP 1900 Main Street, 5th Floor Irvine. California 92614 Attention: R. Michael Jovice Such written notices, demands and communications mar be sent in the same manner to such other addresses as either pam- may from time to time designate by mail as provided in this Section. 602. Extension of Times of Performance. In addition to specific provisions of this Agreement, performance by either part} hereunder shall not be deemed to be in Default, and all performance and other dates specified in this Agreement shall be extended. where delays are due to litigation challenging the validity, of this transaction or anv element thereof or the right of either party to engage in the acts and transactions contemplated by this Agreement: without limitation, relocation obligations in connection therewith. inability to secure necessary labor materials or tools: actions in connection with the remediation of Hazardous Materials, including groundwater contamination; war: insurrection: strikes; lockouts: riots; floods; earthquakes; fires: casualties: acts of God; acts of the public enemy: acts of terrorism: epidemics: quarantine restrictions: freight embargoes: unanticipated subsurface conditions that delay performance: lack of transportation: governmental restrictions or priority; building moratoria: unusually severe weather: or acts or omissions of the other party: acts or failures to act of the City, in its governmental capacity or any other public or governmental agency or entitv or anv other delays beyond the reasonable control of the party claiming an extension ("Enforced Delay"): Notwithstanding anything to the contrary in this Agreement. an extension of time for any such cause shall be for the period reasonably attributable to the Enforced Delay and the party claiming such extension shall promptly notify the other party within thirty (30) days of the commencement of the cause. Times of performance under this Agreement may also be extended in writing by the mutual agreement of the City and/or Developer. Notwithstandin- any provision of this Agreement to the contrary% the lack of funding to Complete the Applicable Developer Improvements shall not constitute grounds of Enforced Delay pursuant to this Section 602. 603. Non Liability of Officials and Employees of Cite and Developer. No member. official or employee of either party shall be personally liable to the other parte or the City. or any successor in interest. in the event of anv Default or Breach by the either party or for any amount which may become due to either parte or their successors. or on anv obligations under the terms of this Agreement. 36 I>OCSOC/1706855v,23/022363-001 604. Relationship Between City, and Developer. It is hereby acknowledged that the relationship between the City and Developer is not that of a partnership or joint venture and that the City and Developer shall not be deemed or -construed for any purpose to be the agent of the other. Accordingly. except as expressly provided herein or in the Exhibits hereto. the City shall have no rights, powers, duties or obligations with respect to the development, operation, maintenance or mannement of the Property. 605. Approvals and Actions. Whenever a reference is made herein to an action or approval to be undertaken by the City, City Manager or his or her designee is authorized to act on behalf of City unless specifically provided otherwise or the context should require otherwise. 606. Commencement of City Review Period. The time periods set forth herein and in the Schedule of Performance for the City's approval of agreements, plans. drawings, or other information submitted to the City by Developer and for any other City consideration and approval hereunder which is contingent upon documentation required to be submitted by Developer shall only apply and commence upon the complete submittal of all the required information. In DO event shall an incomplete submittal by Developer trigger any of the City's obligations of review and/or approval Z- hereunder-, provided, however, that the City shall notift, Developer of an incomplete submittal as soon as is practicable. 607. Successors and Assigns. All of the terms. covenants, conditions, representations, and warranties, of this Agreement shall be binding upon City and Developer and its respective permitted successors and assigns. Whenever the term "Developer" or "City," as the case may be, is used in this Agreement, such term shall include any other permitted successors and assigns as herein provided. 608. Counterparts. This Agreement may be signed in multiple counterparts which. when signed by all parties, shall constitute a binding agreement. This Agreement is executed in three (3) originals'. each of which is deemed to be an original. 609. Integration. This Agreement contains the entire understanding between the parties relating to the transaction contemplated by this Agreement. All prior or contemporaneous agreements. understandings., representations and statements. oral or written,., are merged in this Agreement and shall be of no further force or effect. Each party is entering this Agreement based solely upon the representations set forth herein and upon each party's own independent investigation of any and all facts such party deems material. This Agreement includes pages I through 40 (includes signature page) and Exhibits A through M' (each such Exhibit is incorporated in this Agreement as if fully set forth herein) which together constitute the entire understanding and agreement of the parties, notwithstanding any previous negotiations or agreements between the parties or their predecessors in interest with respect to all or any part of the subject matter hereof, 610. Attorneys' Fees. In any action between the parties to interpret, enforce. reform, modify, rescind or otherwise in connection with any of the terms or provisions of this Agreement, the prevailing party in the action shall be entitled, in addition to damages, injunctive relief or any other relief to which it might be entitled, reasonable costs and expenses including, without limitation. litigation costs and reasonable attorneys' fees. Costs recoverable for enforcement of any Judgment shall be deemed to include reasonable attorneys' fees. DOCSOC/1706855v23/022363-001 5 611. Administration. This Agreement shall be administered and executed by the City Manager, or his/her designated representative. following approval of this Agreement b}_the City. The City shall maintain authority of this Agreoment through the City Manager (or his/her authorized representative). The Cit}, Manager shall have the authority but not the obligation to issue interpretations, waive provisions. approve the Declaration, extend time limits, grant design approvals. and/or enter into amendments of this Agreement on behalf of the City so long as such actions do not substantially change the uses or development permitted on the Property. or add to the costs to the City as specified herein as agreed to by the City Council, and such amendments may, include extensions of time specified in the Schedule of Performance; provided. however. in the event that the City, acting under its Land use regulatory authority, in its sole and absolute discretion. does not grant Land Use Approvals sufficient to allow development of any of the Projects in accordance with the requirements of the Scope of Development, then, in such event, the City Manager shall have the authoritv to modify the Scope of Development so as to permit development consistent with then current general plan and zoning ordinance. All other waivers or amendments shall require the written consent of the City Council. 612. Titles and Captions. Titles and captions are for convenience of reference only and do not define. describe or limit the scope or the intent of this Agreement or of any of its terms. Reference to section numbers are to sections in this Agreement; unless expressiv stated otherwise. 613. Interpretation. As used in this Agreement, masculine. feminine or neuter gender and the singular or plural number shall each be deemed to include the others where and when the context so dictates. The word "including" shall be construed as if followed by the words "without limitation." This Agreement shall be interpreted as though prepared jointly by both parties. 614. No Waiver. A waiver by either pam, of a breach of any of the covenants, conditions or agreements under this Agreement to be performed by the other part shall not be construed as a waiver of any succeeding breach of the same or other covenants, agreements. restrictions or conditions of this Agreement. 615. Modifications. Anv alteration. change or modification of or to this Agreement, in order to become effective, shall be made in writing and in each instance signed on behalf of each part}'. 616. Severability. If any term, provision. condition or covenant of this Agreement or its application to any party or circumstances shall be held, to an,,, extent, invalid or unenforceable. the remainder of this Agreement, or the application of the term. provision. condition or covenant to persons or circumstances other than those as to whom or which it is held invalid or unenforceable. shall not be affected, and shall be valid and enforceable to the fullest extent permitted by law. 617. Computation of Time. The time in which any act is to be done under this Agreement is computed by excluding the first day (sued as the day escrow opens) and including the last day, unless the last day is a holiday or Saturday or Sunday. and then that day is also excluded in which case such day is the day following the excluded day s). The term "holiday" means all holidays as specified in Section 6700 and 6701 of the California Government Code. If anv_ act is to be done by a particular time during a day, that time shall be Pacific Time. 618. Legal Advice. Each party represents and warrants to the other the following: they have carefulh read this Agreement, and in signing this Agreement., they do so with full knowledge of 38 DOCSOC/17068 5x23/02236'-0015 any right which they may have: they have received independent legal advice from their respective legal counsel as to the matters set forth in this Agreement. or have knowingly, chosen not to consult legal counsel as to the matters set forth in this Agreement:. and.. they have freely signed this Agreement without any reliance upon any agreement, promise. statement or representation by or on behalf of the other party, or their respective agents. employees or attorneys. except as specifically set forth in this Agreement, and without duress or coercion. whether economic or otherwise. 619. Time of Essence. Time is expressly made of the essence with respect to the performance by the City and Developer of each and every obligation and condition of this Agreement. 620. Cooperation. Each pam' agrees to cooperate with the other in this transaction and,,, in that regard, to sign any and all documents which may be reasonably necessary, helpful or appropriate to cam, out the purposes and intent of this Agreement. In this regard. Developer and the City agree to mutually consider reasonable requests for amendments to this Agreement. In addition. either party may. at any time. and from time to time, deliver written notice to the other party requesting such pam' to certify in writing that. to the knowledge of the certifying party, (i) this Agreement is in full force and effect and a binding obligation of the parties, (ii) this agreement has not been amended or modified either orally or in writing. and if so amended. identifying the amendments. and (iii) the requesting parry is not in default in the performance of its obligations under this Agreement, or if in default. to describe therein the nature and amount of any such defaults. A party receiving a request hereunder shall execute and return such certificate within thirty (30) days following the receipt thereof. City shall have no liability for monetary damages to Developer. any Transferee or Holders. or any other person in connection with, resulting from oi• based upon the issuance of any such certificate hereunder. The party making the request shall be responsible for the costs incurred by the other party. including without limitation attorneys' fees_ (the "Amendment/Estoppel Costs") in connection with any amendments to this Agreement and/or estoppel documents which are requested by such party (the "Developer/Cit} Request") regardless of the outcome of the Developer/Cin Request. 621. Conflicts of Interest. No member, official or employee of the City shall have any personal interest, direct or indirect.. in this .Agreement, nor shall any such member, official or employee participate in any decision relating to the Agreement which affects his/her personal interests or the interests of any corporation. partnership or association in which he is directly or indirectly interested. 622. Time for Acceptance of Agreement by the Cite. This Agreement, when executed by Developer and delivered to the City, must be authorized. executed and delivered by the City on or before thim, (30) days after signing and delivery of this Agreement by Developer or this Agreement shall be void. except to the extent that Developer shall consent in writing to a further extension of time for the authorization. execution and delivery of this Agreement. 623. Recordation of Memorandum of Agreement. The Memorandum of Agreement shall be recorded concurrently with the Close of Escrow and the terms hereof shall survive Closing and run with the land for the period of time set forth herein. 624. Covenants Survive Closing. Notwithstanding anything to the contrary set forth in this Agreement, without limitation as to the Surviving Covenants.. the Declaration and those DOCSOC/1706855v23/022363-001 provisions of this Agreement described in the Memorandum of Agreement as surviving the Closing. the provisions of this Article 600 shall survive the Closing. [SIGNATURES OIV VEAT PAGE] 40 DOCSOC/1706855v23/022363-001 IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the respective dates set forth below-•. CITY: CITY OF ANAHEIM, a California municipal corporation and charter cit} Dated: .20 Bv: ATTEST: LINDA N. ANDAL, CITY CLERK Citv Clerk APPROVED AS TO FORM: MICHAEL HOUSTON, CITY ATTORNEY Theodore J. Revnolds Assistant Citv Attorney City Manager DEVELOPER: LAB HOLDING LLC. a California Limited liability company Dated: 20_ By: Its: S-1 DOCSOC/1 706855-%-23/022363-001-7 EXHIBIT A A-1 DOCSOC/1706855v23/022363-001 F9►au#..�f:� LEGAL DESCRIPTION OF PROJECT SITES PROJECT #1: PACKING DISTRICT PACKING HOUSE The real property referred to herein is situated in the County of Orange, City of Anaheim. State of Califomia, and is described as follows: PARCEL 3 OF PARCEL MAP NO. 2011-116 RECORDED JUNE 3. 2014 AS INSTRUMENT NO. 201400215209 IN BOOK 379. PAGES 15-20 OF PARCEL MAPS IN OFFICIAL RECORDS OF SAID COUNTY. FARMERS PARK AND PACKARD BUILDING The real property referred to herein is situated in the County of Orange, Citti- of Anaheim. State of California, and is described as follows: PARCELS 1 AND 2 OF PARCEL MAP NO. 2011-116 RECORDED JUNE 3. 2014 AS INSTRUMENT NO. 201400215209 IN BOOK 379, PAGES 15-20 OF PARCEL MAPS IN OFFICIAL RECORDS OF SAID COUNTY. MAKE BUILDING (500 S. ANAHEIM BOULEVARD) The real propem, referred to herein is situated in the County of Orange. Cin of Anaheim. State of California. and is described as follows: PARCEL 3 OF PARCEL MAP NO. 89-31 i, IN THE CITY OF ANAHEIM, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS PER MAP FILED IN BOOK 260, PAGES 1 TO 4 INCLUSIVE OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPTING THEREFROM THAT PORTION CONVEYED TO THE CITY OF ANAHEIM IN GRANT DEED RECORDED MAY 02, 2006 AS INSTRUMENT NO. 2006000294061. IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. ALSO EXCEPTING THEREFROM ALL OIL. MINERAL. GAS OR OTHER HYDROCARBON SUBSTANCES BELOW THE DEPTH OF 500 FEET, UNDER THE SURFACE OF SAID LAND. BUT WITHOUT THE RIGHT OF SURFACE ENTRY OR ANY OTHER USE OF THE LAND ABOVE SUCH 500 FOOT DEPTH, AS RESERVED IN DEED RECORDED MAY 05. 1989, AS INSTRUMENT NO. 89-238472 OF OFFICIAL RECORDS PROJECT #2: HomeMADE LOTS 17 THROUGH 23 INCLUSIVE IN BLOCK M OF THE CENTER TRACT. AS PER MAP RECORDED IN BOOK 14. PAGE 13 OF MISCELLANEOUS RECORDS OF LOS ANGELES COUNTY. CALIFORNIA.. IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPT THEREFROM ALL OIL. MINERAL. GAS OR OTHER HYDROCARBON SUBSTANCES BELOW A DEPTH OF 500 FEET UNDER THE SURFACE OF SAID LAND. BUT WITHOUT THE RIGHT OF SURFACE ENTRY OR ANY OTHER USE OF THE LAND ABOVE SUCH 500 FOOT DEPTH, AS RESERVED IN DEED RECORDED MAY 05, 1989 AS INSTRUMENT NO. 89-238472. OFFICIAL RECORDS. APN: 037-024-11, and B-1 DOCSOC/1706855v23/022363-0015 THE NORTH 100 FEET OF LOTS 17 THROUGH 23, INCLUSIVE. IN BLOCK L OF THE CENTER TRACT AS PER MAP RECORDED IN BOOK 14. PAGE 13 OF MISCELLANEOUS RECORDS OF LOS ANGELES COUNTY. CALIFORNIA. IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPTING THEREFROM MINERAL AND OTHER RIGHTS AS RESERVED BY SOUTHERN PACIFIC COMPANY IN DEEP RECORDED DECEMBER 20. 1958. IN BOOK 45287 PAGE 251 OF OFFICIAL RECORDS. APN: 037-1 11-29, and THE SOUTH 35 FEET OF LOTS 17 THROUGH 23. INCLUSIVE. IN BLOCK L OF THE CENTER TRACT AS PER MAP RECORDED IN BOOK 14, PAGE 13 OF MISCELLANEOUS RECORDS OF LOS ANGELES COUNTY. CALIFORNIA. IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 037-111-30 B -2 DOCSOC/1706855\23/022363-001 PROJECT #3: BARN MRSPA",, PARCELS PARCEL :A THAT POIZ1,101%% OF ;AIRSPACF P_AIZCI`:I, I- INT111" 111" CITE OF ANAHEIM. IM. COUNTY OE OI::ANGE. STATE OF C_1LIFOR\I- 3S PER PARCEL M.AP \C). 86-142. PILED IN BOOK '_32_ PACES I5 THROIXiIf 19- INC I.USIV!, OF PARCEL,\TAPS, RECORDS OF SAID COI.'N Y, DESCRIBED AS 1`01,LOb1'S: BEGINNING :A" TI-fI: SOI"'MERI,. TFXMI\ISS OF THAI" CERTAIN COURSE SHOWN AS "N01"I'I-1 14`34'40 WEST 19(hs-s I I,ET-_ ON "I HE, EASTERI.1 LINE OF STAID PARCEL L TUNCL ALONG SAID EASTLRLY LI:NI; NOIR FII 14'34-40I WEST 40.00 FELTTO THE: FAS iF.RI;iPROLONU ATION Oi= THAT CE.RTAUX COQ?RSI: SHOWN AS N75"25"20"" 30.0x,1" `° ON'I'llF. NORTHEiRIN LINE OF P:ARCh:L I I OI' SAID P;AIZC'1, M AP ANI)13RINC3 "1"I I1:'I'i:(?I? POI ti'I' (iI^`I31?GIfiN`I (z, TIIE? CE' SOT-THE.RLY ALONG SAID F.;ASTF:RT.Y PIZOI,ONGATION .AND SAID COI'RSI? SOt III 7;°2>'20" Wl-'S'I' 48 99 FEETTO AN ANGLF POINT IN SAID NORTHERLY LINE; OF 11ARCE1, I L THENC E CON'T'INUING ALONC3 SAID NORTIiI?RLY EINE O1" PARCEL. I1 TIII: FOLLMVING EKrHT (8) COURSES= I') NORTH 14"34'40 \VEST 63.1)0 FEET, 2) S01.71I 75" 25'20'" AA'EST 39,00 FEET. 31 SOI "'I'l1 14 --4('` EAS!- 5.0{) I=E1: C: 4', SOT"I'II 71` _' `20-' WEIST 33.00 PI?]?1 5) ieORTII 14'34'40-' NVEST 5M FEET: 6) SOUTH 75: 2 -20- WEST 111.00 FEM 7) SOt7117 14"'34-40" E.AS'1 .00 FI":I 8i SOUTH 7°'^'20" WEST10.7, FEET. THENCE LEAVING SAID NORTHERLY LINE OF PARCEL I I, NORTH W14"40" WEST 42.38 TO TIIE HEGIV-1ING OFA \O\ -TANGENT CT__1RVF CONCAVE NOR"I'lINV :STEIZI,Y Ii:AFINU A RADII"S OF 27 .60 FF.I-T. SAID CURVE, HEINU CO\CE\TRIC 'VVITI1 :AND 1.50 FEET SOT'THE.ASTERLV OF THE: GENERA. Pam: 1 of'3 \t:_y4at>yir;2'3'?:13.Lc_als��'3;;t , 31P_ PARC'I_ILS.Jo,% B-3 DOCSOC/1706855%^23/022363-001 NC)RTFIEIZF_`y` I,TNF'. OF S:IID P-1RC'P.; ;.:� 1;.1I)i',I, I,I\F: T{) SAII? FiE:GTN\T�zG FiE;�LItS SOUTH 33' 00'23" FAST: THENCE ALONG SAID CONCENTRIC CT'RVE NORTHEASTERLY 14.45 FEET THROUGH A CE'tiTRAL. ANGLE OF 4 0"'38" TOA LINE WHICH IS PARALLF.I.. WITFI AND T 5f) FEET SOI'THEASTER1,Y rROII SAID I,Y LINE; OF PARCEL is TI-IFNCI . AT.ONCI SAID PARI,111, LINT; NOI'.`t Fi 52 56'59— EAST 88.94 FEET TO THE, BEGF\Nl FNs r OF A \O'.\-TANCil:NT Ci. -P\\' CC?.vC�itil: NOPvT!IT'AS'I'ERLI' IIA\-I\Ci A RADIUS OF 94,00 FEET. SAID CURIE BEING; CONCENTRIC EV'ITII AND 4,00 FEET SOL?THERLI' FROMI SAID GENER_LL NORTHERLY LINE OF PARCEL I HATING A RADIUS OF 9().00 FEET_ A R.-I)I_=~,I. '.I'VE TO SMD BEGP\�I\CI BEARS SOUTIF 33`'22' 1' " VtrLST: THENCE EASTERLY ALONG SAID CONCENTRIC CURVE 1.0.09 FEE`I TIIROi GII A CE:N'I`R-1}, :INGLI' OI f)6"f1f °53"'I'O \ LINT' W111C`I1 IS R IDIAL TO SAID CURVE, `I'HEN:CE 1I;ONG SAID RADIAL LINE INORT11 '' ,'1.3'2 ' L .ST 2.50 FEET TO THE III- :GINNING OFA NO'S=IANGI:N`i'L`I I%'VF CONGA`",,: NOR'1HEIZI-Y HAVING .; PARCEL B BEING ALL OF AIRSPACE PARCEL 9. IN THE CITY" OF ANAHEIM. COUNTY OF ORANGE. STATE OF CALIFORNIA AS PER PARCEL MAP NO. 86-142, FILED IN BOOK 232, PAGES 15 THROUGH 19, INCLUSIVE OF PARCEL MAPS, RECORDS OF SAID COUNTY. CONTANING 0.091 ACRES MORE OR LESS. PARCEL C BEING ALL OF AIRSPACE PARCEL 10, IN THE CITY OF ANAHEIM. COUNTY OF ORANGE, STATE OF CALIFORNIA AS PER PARCEL MAP NO. 86-142, FILED IN BOOK 232, PAGES 15 THROUGH 19, INCLUSIVE OF PARCEL MAPS, RECORDS OF SAID COUNTY. CONTANING 0.053 ACRES MORE OR LESS. PARCEL D BEING ALL OF PARCEL 2 IN THE CITI' OF ANAHEIM, COUNTY OF ORANGE, STATE OF CALIFORNIA AS PER PARCEL MAP NO. 94-110, FILED IN BOOK 296, PAGES 26 THROUGH 28, INCLUSIVE OF PARCEL MAPS, RECORDS OF SAID COUNTY. CONTANING 0.545 ACRES MORE OR LESS. ALL AS SHOWN ON THE SKETCH TO ACCOMPANY LEGAL. DESCRIPTION ATTAHCED HERETO AND BY THIS REFERENCE MADE A PART HEREOF. DATED THIS 1s( DAY OF l`)t:` bOl 2015. KURTR. TROXELL, L.S. 7854 FUSCOE ENGINEERING 873-013-01 Page 3 of 3 )L'"\: Aappmg18731131Legals1E73013 AIF, PAR CELS.doc;: Rom DOCSOC/1706855v23/02236'-001 CLEMENTINE STREET (NEW C-) 6 0' 20! 40' GC' (OLD q, GRAPHIC SCALE: 1" = 6C' NIA-D NO, 36.5' LINE TABLE I NO. 1 BEARING � LENGTH W < Lu u 171, io L -J, ri Ll N5256'59'7- 11 88.94' <� - PARCELD -I--, '11� c- 0545 AC. L-, j N2713-22-t-i 2.50' J(RAD)lz 'r Lu C, I-J, L. Fl AVL 2261,125-28 CURVE TABLE EL NO. I DELTA I RADIUS 1 LENGTH cP.O.S., +'j 190.85' Ci uj Li i PCL 'P.O.S. '5 BENCHMARK, 0= AC. 4 '7575,20,w L ELEVATIONS ARE IN TERMS 0- 48.99' S THE. CITY Or ANAHEIM. BENCHMARK NO. SA-215-8.3, ELEV=148,08 FT U-1 14 f- N)4'34!40*W (1983 ADJj PER PM 86-142 - 63.00, F.M.5 232/15-19. 67, S75-25'21%'39.00' B'A C' AIR RIGHTS PARCELS NOTE 4, 5.00' PARCELS A, D, AND I ARE AIR RIGHT-, Z p) S75'25'20"Y, PARCELS AND HAVE VERTICAL AND rn 33.00, HORIZONTAL LIMITS. VERTiCAL LIMITS ARE f PCL A PER PM, 56-142 P.M.B. 2321/15-19 AND L2 0.358 AC ARF LISTED BELOW.: N1434'40N' 5.00' ARE,n DESIGNATION VERTICAL LlMlll: PCL B LOWER E—,-V. LIMIT 150.50'\ A 05, D.= AC. UPPER ELEV'. LIMIT 18C.5C' :JAA' LOWER ELEV- LIMIT = 150.50' V) UPPER ELEV. LIMIT SI434'40'--- NO ELEV. LIMITS S75"25'20'W 10,75 SEE SHEET I &3 FOR VERTICAL 44". CROSS-SECTION DETAILS 23 NI 4-34'40'W Nt)lr-- S�5-131 AIRSPACE BENEATH ELEVATION 150.50' FOR PARCELS E3 AND C AND ABOVE ELEV. 15C,5D' FOR THOS: PORTIONS Or SAID PARC;ELS DESIGNATED AS AIRSPACE AREA FIS A PART 0 PARCEL A. T DATE- SEPT 25,2015 SKETCH TO ACCOMPANY DESCRIPTION SCALE I'-BC' Ala FUSCOE It... AP 87=3.01 1 It I I I I I I I R 6 AIRSPACE PARCELS 16795 v- F.—, Sq. 100, IM-, cw#..ft 9126D6 SHEET 1OF3 FOR THE BARN KA.:\MAPPING\873\]3\L--GALS\873013 AIR PARCELS -DWG B-6 DOCSOC/1706855v23/02'-1363-001 !t\MAPPINC\873\'.3\LF-C_AS\873013 AIR PARCELS.DK'G B-7 DOCSOC/1706855N,23/022363-001 � ELEV = 18050'— 8050'--LJC�(pAR: LJ �(p A.R c—L fl? 1ss:: z o 170 ELEV = 15::.75' 20.50' 75 0 FARCE B VARIES -- 36,75' 150 z 140 PARCEL A � 1.5 0 2L 4c 60 8C 100 HORIZONTAL DISTANCE (FT) SECTION A' -A` li ELEV = 150.50' i - 180 2.75' we 180 t Ly�_ 'i.DAF?,.It C � Cr 1 160 VARIES 1sGPARCEL HPA aELEV = 150.5C' 140 Jr(� JJ w. 130 0 20 40 60 80 100 HORIZONTAL DISTANCE (FT)l SECTION $'-B' DATE: SEPT 2.5� 2015 pp FUSCOE SKETCH TO ACCOMPANY LEGAL DESCRIPTION SCALE 1' -ICY 84.. JN; 873D13.01 t e c I t t a I I c AIRSPACE PARCELS SHEET 2 OF 2 16796 Yon Ronnm, 50. IOP, Irj-, CW#.nwv 92606 IW 949.A7AA 960 a pm 949.474M19 n wwwkuame..mm FOR THE BARN !t\MAPPINC\873\'.3\LF-C_AS\873013 AIR PARCELS.DK'G B-7 DOCSOC/1706855N,23/022363-001 � C FARCE -1i 20.x` �PMRXcEL c ELEV PARCEL T 20 4c, 60 8C loc, HORtZONTk- DISTANCE (FT) SECTION C' qql� DATE: SEPT25 7015 .� SKETCH. TO ACCOMPANY LEGAL DESCMMON SCALE 2' 30' AIRSPACE PARCELS JN- 873.01301. 14r9s von Kannon, sv iD0,l�wnv, cam 976Q6 SHEET 3 OF 3 W 9d9.AU-1960 a {m 9'A9.,174M ib = www.heeodmm FOR THE BARN M:\MAt° ING\873\73\L=GAL5\87307:i AER PARCEI;.DW:: (iv—Ot-15r B-8 DOCSOC/1706855e23/022363-0015 190 ELEV = 18450'—_ 3.25 — u� 180+ I �< 170+ 160 leo 51.3 .�'_ z 0 _ 140 PARCH A I 130 t I C FARCE -1i 20.x` �PMRXcEL c ELEV PARCEL T 20 4c, 60 8C loc, HORtZONTk- DISTANCE (FT) SECTION C' qql� DATE: SEPT25 7015 .� SKETCH. TO ACCOMPANY LEGAL DESCMMON SCALE 2' 30' AIRSPACE PARCELS JN- 873.01301. 14r9s von Kannon, sv iD0,l�wnv, cam 976Q6 SHEET 3 OF 3 W 9d9.AU-1960 a {m 9'A9.,174M ib = www.heeodmm FOR THE BARN M:\MAt° ING\873\73\L=GAL5\87307:i AER PARCEI;.DW:: (iv—Ot-15r B-8 DOCSOC/1706855e23/022363-0015 PROJECT #4: BURNS & ORGERON PROPERTY BURNS LOT 33 OF TRACT NO. 212 IN THE CIT)' OF ANAHEIM. COUNTY OF ORANGE. STATE OF CALIFORNIA. AS PER MAP RECORDER Il` BOOK 't-3 PAGE(S) 1 OF MISCELLANEOUS MAPS IN THE OFFICE OF THE COUNTY RECORDER OF ORANGE COUNTY, CALIFORNIA. APN: 251-071-24, and ORGERON BEGINNING AT THE SOUTHEAST CORNER OF VINEYARD LOT G-4. AS PER MAP THEREOF RECORDED IN BOOK 4. PAGE 630 OF DEEDS, RECORDS OF LOS ANGELES COUNTY, CALIFORNIA AND RUNNING THENCE VAIESTERLY ALONG THE SOUTH LINE OF SAID VINEYARD LOT 209 FEET: THENCE AT RIGHT ANGLES NORTHERLY PARALLEL WITH THE WESTERLY LINE OF SAID VINEYARD LOT, 126.69 FEET: THENCE AT RIGHT ANGLES EASTERLY PARALLEL WITH THE NORTHERLY LINE OF SAID VINEYARD LOT. 209 FEET MORE OR LESS. TO THE EASTERLY LINE OF SAID VINEYARD LOT: THENCE AT RIGHT ANGLES SOUTHERLY ALONG THE EASTERLY LINE OF SAID LOT, 126.69 FEET MORE OR LESS. TO THE SOUTHEAST CORNER OF SAID VINEYARD LOT AND THE POINT OF BEGINNING. EXCEPT THEREFROM THE EASTERLY 9 FEET. ALSO EXCEPT THE SOUTHERLY 21.75 FEET THEREOF CONVEYED TO THE CITY OF ANAHEIM. FOR WIDENING WEST WATER STREET BY DEED RECORDED APRIL 16,194-7, AS INSTRUMENT NO. 16282 IN BOOK 1521. PAGE 70 OF OFFICIAL RECORDS. IN THE OFFICE OF THE COUNTY RECORDER OF SAID ORANGE COUNTY. APN: 251-071-23 B-9 DOCSOC/1706855v23/022363-001 EXHIBIT C SCOPE OF DEVELOPMENT Unless otherwise specified herein, all capitalized terms in the Scope of Development shall have the meaning(s) set forth in this Disposition and Development Agreement (DDA) to which this Scope of Development is attached. PROJECT SITE 1: PACKING DISTRICT a. Packing House - Completed b. Packard Building - Completed C. Farmers Park — Landscape and Hardscape Completed Developer is not obligated to construct anv additional improvements, however. the Developer may choose to construct anv or all of the improvements described below, the specifics of which are subject to the review and approval of the Cite Manager. Greenhouse —New construction of an approximately 1.800 s.f caf6 building with a strong indoor/outdoor relationship with the existing olive grove patio. Farmhouse- New construction of an approximately 1,400 s.f. caf6 building that opens to Farmers Park and additional patio space to the east of the building. Pavilion— New construction of an approximately 2,000 s.f. open-air market pavilion for use during Farmers Markets, Craft Fairs and other such events. d. MAKE - Restoration of an approximately 10, 510 s.f. 1917 single story warehouse to house three to four new makers (brewery. winery and others) to produce on site. The new users will share a central common space and a shared outdoor garden patio filled with a tree grove and seating. Plans are approved, land entitlements are in place, and project is under construction.' PROJECT SITE 2: HomeMADE PROJECT A mixed use project comprised of a minimum of 20 units and maximum of 80 townhouse type apartments units developed as live work units. The project will have garden spaces that open to Santa Ana St. to create an inviting "neighborhood porch" frontage along the street. Units will have the unique ability to open to the public on occasion for communal dining. The Developer will provide for all on-site parking as required, as well as utility services from existing sources. Developer's affiliate Packing House LLC is acting as construction services manager under the Management & Operations Agreement to complete certain Tenant Improvements pursuant to the Lease between City of Anaheim, as Successor Agency and Developer dated 9/18/14 pertaining to the MAKE building. The Applicable Developer Improvements are to be considered the same as the Tenant Improvements identified in the Lease. DOCSOC/1706855v23/022363-0015 PROJECT SITE 3: BARN (BUSINESS ARTIST RESIDENCE NETWORK) The BARN will be a new 2 story building with retail. restaurant and office uses. In addition. a multi-level apartment building. or as an alternative a hotel development if such hotel units are allowed by the City acting in its sole and absolute discretion. will be constructed behind the BARN and will fit the urban scale and architecture of the remainder of Center Street development. The commercial component is a minimum of 5.000 s.f. and a maximum of 18,000 s.f. and the residential is a minimum of 10 units and maximum of 25 units. The Developer will be required to construct one exclusive parking space on site per each residential unit and provide for all utility services from existing sources. All other required parking will be made available to the Developer pursuant to Section 312 of the DDA. PROJECT SITE 4: BURNS HOUSE 8. ORGERON BARREL BUILDING An approximately 2.750 s.f. historic Craftsman home will be restored on the site and the approximately 5.600 s.f. barrel vaulted ceiling building will be adaptively reused. The remainder of the site will be developed with new buildings consisting of up to 16 residential units . The site will be landscaped to fit the character of the original craftsman home and create a green respite along Anaheim Boulevard. The Developer will provide for all on-site parking as required, as well as utility services from existing sources. except as otherwise provided in the Parking Easement Agreement. All of the foregoing shall be subject to the issuance of all applicable Land Use Approvals and compliance with all applicable laws and ordinances pertaining thereto. including without limitation, CEQA. This Scope of Development does not commit the City to consider or undertake acts or activities requiring subsequent independent exercise of discretion, including, but not limited to, the approval of any development proposal or Land Use Approval governing any Project Site. The Developer hereby agrees that the City retains discretion on potential future actions to approve, deny. modify, and consider alternatives to a proposed project whether included herein or otherwise, as well as to impose adequate mitigation measures as may be required by the California Environmental Quality Act. C-2 DOCSOC/1706855v23/022363-0015 EXHIBIT D SCHEDULE OF PERFORMANCE CONVEYANCE OF THE PROPERTY No. Provision/Description Schedule/Timing DDA Reference Escrow. The City and Developer stall No later than ten (10) days §201.3 open one escrow for the conveyance of after the Effective Date of the Property. this Agreement. 2 Review of Title. City shall cause Title No later than ten (10) days §202 Company to deliver Preliminary Title after the Date of the this Report, together with all documents Agreement. underlying the exceptions, and an ALTA survey. Developer gives written notice to City and Escrow Holder either approving or disapproving Exceptions City and Developer attempt to remove or modify - or seek title insurance for - Exceptions that are unacceptable to Developer. Developer proceeds to Closing and accepts title or terminates Agreement. No later than thirty (30) days from the date of receipt of the items listed in 2. above to provide written notice of approval or disapproval. No later than thirty (3 0) days from the date of the receipt of Developer's written notice disapproving Exceptions, if applicable. 3 Property Investigation. City shall Completed transmit to Developer all information in City's possession with respect to the environmental and physical condition of the Property. The Developer shall approve or Thirty (30) days from the disapprove the Property condition. Date of the Agreement. 4 Conditions of Closing. Close of Escrow Prior tc the Close of is conditioned upon the satisfaction or Escrow waiver by Developer and/or City, as applicable, of each of the Conditions Precedent. D-1 DOCSOC/1706855v23/022363-0015 §201 and 204.1 §205 §20.5 CONVEYANCE OF THE PROPERTY No. Provision/Description 5 Purchase and Sale. 1. The parties shall deliver cash and documents as required by the DDA to the Escrow Holder. 2. Developer shall pay the remainder of Purchase Price 6 Close of Escrow. Schedule/Timing On or before the day prior to the scheduled Closing. Prior to the Close of Escrow of the Site. Within ten (10) days following satisfaction (or waiver) of all Conditions Precedent, but in no event later than the Outside Closing Date (December 31.2016). DDA Reference §204 §201.3 and §205 7 Issuance of Title Insurance and Concurrently with Close of §203 Recordation of Grant Deed. Escrow. Concurrently with the recordation of the Grant Deeds. Developer shall be issued the Title Policies. DEVELOPMENT OF PROJECT SITES PROJECT SITE NO. 1 With the exception of the MAKE Building, all other Developer Improvements on Project Site No. 1 are completed. No. Provision/Description 1 Complete Construction of Applicable Developer Improvements. Developer shall complete the construction of the Applicable Developer Improvements. Schedule/Timing DDA Reference Within 8 months from Commencement of Construction (February 29, 2016). 2 Notice of Completion. Developer's Upon receipt of the Contractor to complete a Notice of Certificate of Occupancy of Completion when Applicable Developer the Applicable Developer Improvements are completed for Improvements. recordation. D-2 DOCSOC/13 706855N 23/022363-0015 PROJECT SITES 2, 3 AND 4 The Parties agree that the Developer Improvements shall be constructed on a phased basis. Developer Improvements for all Project Sites must be completed within 66 (sixty-six) months from the Closing Date. The order in which Project: Sites No. 2, 3. and 4 are developed shall be mutually agreed upon by the City Manager and Developer. In the event that the Developer chooses to submit Land Use Approval applications for any of the Projects sooner than this Schedule indicates, the construction may commence for that Project no later than twelve (12) months, in the case of Project Site Nos. 2 and 4. or eighteen (18) months in the case of Project Site No. 3. following the date on which construction on the prior phase is required to commence. No. Provision/Description Schedule/Timing DDA Reference 1 Land Use Approvals - Applications for Land Use §303 Application Approvals shall be submitted to the City for the first Project to be constructed no later than sixtv (60) days from the Closing Date. 2 Land Use Approvals. Application for Land Use Developer shall secure any and Approvals shall be all land use approvals which approved, conditionally the City may require for the approved, or rejected by the construction and operation of Citv no later than twelve the Applicable Developer (12) months from Improvements application submittal with respect to Project Site No. 2 or Project Site No. 4 (vs. actual). On or before ejghteen (18) months from the scheduled date for submittal of applications for Land Use Approval for Project with respect to Site No. 3. Submittal and Approval of Concurrently with Approval Conceptual Site Plan and of the Agreement by Cit}' Basic Concept Drawings. City Council. approves, conditionally approves or rejects Conceptual Site Plan and Basic Concept Drawings. Submittal - Design Concurrently with Submittal Exhibit P - Design Development Drawings. of Land Use/Entitlement Review Process D-3 DOCSOC/1706855v23/022363-0015 PROJECT SITES 2. 3 AND 4 Developer prepares and Application. submits to Citv Manager Design Development Drawings for the Applicable Developer Improvements Approval of Design No later than thirty (30) Development Drawings. Citi days after submittal of a Manager approves. complete package. conditionally approves. conditionally approves or disapproves Design Development Drawings for the Applicable Developer Improvements Submittal - Construction Within fourteen (14) weeks Drawings. Developer following the approval of prepares and submits the Design Development Construction Drawings to City Drawings. for the Applicable Developer Improvements. Approval of Construction No later than sixty (60) days Drawings. City approves or after submittal of a complete disapproves Construction package Drawings for the Applicable Developer Improvements. Building Permits. Developer On or before thirtv (30) days posts required security, and prior to the date on which deposits funds with the City or construction is scheduled to sets aside funds in a manner commence for the satisfactory to the City Applicable Developer Manager to secure payment of Improvements. all fees that are required for construction of the Applicable Developer Improvements by the Cit,, and other public agencies for which the City acts as a depository for fees. Commence Construction of On or before twelve (12) Applicable Developer months following the Improvements. Developer to scheduled date (vs actual D-4 DOCSOC/1706355v23/022363-0015 PROJECT SITES 2, 3 AND 4 begin construction of the Applicable Developer Improvements The Developer shall commence the construction of the Developer Improvements. 10 Complete Construction of Applicable Developer Improvements. Developer to complete the Applicable Developer Improvements. 11 Release of Covenants. City to furnish Developer with the Release of Covenants for the Applicable Developer Improvements date) for submittal of applications for Land Use Approval if Project site No. 2.r Project No. 4 is the first Project. On or before eighteen (18) months following the scheduled date (vs actual date) for submittal of applications for Land Use Approvals if Project Site No. 3 is the first Project. Within twelve (12) months from commencement of construction with respect to Project Nos. 2 and 4. Within eighteen (18) months from commencement of construction with respect to Project No. 3 After Completion of the Applicable Developer Improvements and within thirty (30) days after written request from Developer §312 The foregoing schedule is subject to change based upon the changes mutually approved in writing by the Parties and Events of Enforced Delay. In addition, in the event of any conflict between the schedule and timing set forth in this Exhibit D and the schedule and timing set forth in the text of the Agreement. the text of the Agreement shall prevail. D-5 DOCSOC/1706855v23/022363-001 made EXHIBIT E ASSIGNMENT AND ASSUMPTION AGREEMENT THIS ASSIGNMENT AND ASSUIVIP"FION AGREEMENT (the "Assignment") is hereby as of 20 by and between a (` ). and a ('Assignee"). RECITALS A. Assignor and the City of Anaheim (the "City") have entered a Disposition and Development Agreement dated 20 (the "DDA"). Pursuant to the DDA. the City agreed to convey [or conveyed] to the Assignor a parcel of real propertv referred to in the DDA as the "Property/Project Site," and the Assignor agreed to construct [among other things] thereon. B. Assignor and Assignee desire to provide by this Assignment for Assignor to assign to Assignee all of its rights and obligations under the DDA and for Assignee to accept such assignment and assume all rights and obligations thereunder. C. Pursuant to Section 103 of the DDA. City approval of a Transfer of Assignor's interest in the DDA is required in connection with the construction of D. The parties also desire for City to consent to such assignment and assumption. and acknowledge that such assignment and assumption is permitted pursuant to Section 103 of the DDA. NOW, THEREFORE. Assignor and Assignee hereby agree as follows: 1. Assignment and Assumption. Assignor hereby assigns to Assignee all of its right, title and interest in and to the DDA as the DDA pertains to Project Site _ (the "Project Site") but not as to the remainder of the Property, and Assignee hereby accepts such assignment and assumes performance of all terms, covenants and conditions on the part of Assignor to be performed. occurring or arising under the DDA pertaining to the Project Site. from and after the date hereof with respect to . From and after the date hereof. Assignor shall be released from and have no further obligations under those provisions of the DDA pertaining only to the Project Site, excluding actual claims of Default which City made against Assignor in writing prior to the date hereof. the responsibility for which claims have not been assumed by Assignee. 2. Remainder of Property. Transferor remains responsible to perform under the DDA as the DDA pertains to all of the Property excepting only as otherwise provided in Section 1 hereof. 3. Successors and Assigns. This Assignment shall be binding upon and shall inure to the benefit of Assignor and Assignee. their respective successors and assigns and City as third party beneficiary hereof. 4. Governing Law. This Assignment has been entered into. is to be performed entirely within, and shall be governed by and construed in accordance with the laws of the State of California. DOCSOC/1706855v23/022363-001 5. Further Assurances. Each party hereto covenants and agrees to perform all acts and things. and to prepare. execute. and deliver such written agreements, documents. and instruments as may be reasonably necessary to carry out the terms and provisions of this Assignment. above. NOW, THEREFORE, the parties hereto have executed this Assignment as of the date set forth ASSIGNOR: a By: Its: By: Its: ASSIGNEE: I� Its: E-2 DOCSOC/1706855% 23/022363-0015 a CONSENT OF CITY TO ASSIGNMENT City hereby acknowledges and consents to the above assignment, and releases Assignor from further liability under the DDA to the extent described in Sections 1 and 2 of this Assignment., except in Assignor's capacity as a member of Assignee. CITY: CITY OF ANAHEIM, a California municipal corporation and charter city Dated: , 2G By: City Manager ATTEST: LINDA N. ANDAL, CITY CLERK Cite Clerk APPROVED AS TO FORM: MICHAEL HOUSTON, CITY ATTORNEY Theodore J. Revnolds Assistant CinT Attorney E-3 DOCSOC/1706855v23/022363-001 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO AND SEND TAX STATEMENTS TO: Lab Holding, LLC 709 Randolph Avenue Costa Mesa, California 92626 Attention: Shaheen Sadeghi APN: EXHIBIT F GIANT DEED DOCUMENTARY TRANSFER TAX computed on the consideration or value of proper t-,\ OR computed on the consideration or value less liens or encumbrances remaining at time of sale. Signature of Declarant or Agent determining tax - Firm Name. GRANT DEED For valuable consideration. receipt of which is hereby acknowledged, the City of Anaheim, a California municipal corporation and charter city ("Grantor" or "City") grants to Lab Holding. LLC, a California limited liability company ("Grantee" or "Developer") that real property in the City of Anaheim. County of Orange. State of California. described in Exhibit "A" hereto (the "Property"). subject to the following: A. The Grantee shall refrain from restricting the rental, sale or lease of the applicable portion of the Property or the "Developer Improvements' (as defined in that certain unrecorded agreement entitled "Disposition and Development Agreement" dated as of 2016. by and between Grantor and Grantee [the "DDA"], a copy of which is on file with the City as a public record) on the basis of race, color. creed, religion, sex, marital status, national origin or ancestry of any person. All capitalized terms not defined herein shall have the respective meanings established therefor in the DDA. F-1 DOCSOC/1706355v23/022363-001 All such deeds, leases or contracts shall contain or be subject to substantially the following nondiscrimination or nonsegregation clauses: 1. In deeds: "The grantee herein covenants by and for himself or herself: his or her heirs, executors. administrators. and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation o," ani person or group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code. as those bases are defined in Sections 12926. 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955. and Section 12955.2 of the Government Code, in the sale, lease, sublease, transfer, use. occupancy. tenure, or enjoyment of the premises herein conveyed. nor shall the grantee or any person claiming under or through him or her. establish or permit anypractice or practices of discrimination or segregation with reference to the selection. location, number. use or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the premises herein conveyed. The foregoing covenants shall run with the land." 2. In leases: "The lessee herein covenants by and for himself or herself. his or her heirs. executors. administrators, and assigns.. and all persons claiming under or through him or her, and this lease is made and accepted upon and subject to the following conditions: "That there shall be no discrimination against or segregation of any person or group of persons, on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (in) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the premises herein leased nor shall the lessee himself or herself. or any person claiming under or through him or her. establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use. or occupancy. of tenants. lessees, sublessees, subtenants. or vendees in the premises herein leased." 3. In contracts: "There shall be no discrimination against or segregation of any person or group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926. 12926. 1. subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale. lease, sublease, transfer, use, occupancy. tenure, or enjoyment of the premises which are the subject of this Agreement, nor shall the grantee or any person claiming under or through him or her. establish or permit any practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees. subtenants, sublessees, or vendees in the premises herein conveyed. The foregoing covenants shall run with the land." The covenants against discrimination, set forth in this Section B shall continue in effect in perpetuity. B. No violation or breach of the covenants.. conditions, restrictions, provisions or limitations contained in this Grant Deed shall defeat or render invalid or in anv way impair the lien or charge of any mortgage or deed of trust or security interest permitted by this Grant Deed or the DDA; provided, however, that any subsequent owner of the Property shall be bound by such remaining covenants, F-2 DOCSOC/1706855v23/022363-0015 conditions, restrictions, limitations and provisions, whether such owner's title was acquired by foreclosure, deed in lieu of foreclosure, trustee's sale or otherwise. C. All of the terms, covenants and conditions of this Grant Deed shall be binding upon the Grantee and its successors and assigns. Whenever the term "Grantee" is used in this Grant Deed. such term shall include any other successors and assigns as herein provided. D. After the Closing and prior to recordation of Construction Financing, the City has the right, at its election, to re-enter and take possession of the Applicable Project Site(s) (Project Site No. 2, Project No. 3 and/or Project Site No. 4 only. as each of such Project Sites is defined in the DDA) and terminate and Revest in the City the estate conveyed to the Developer of the Applicable Project Site if, after the Closing and prior to the recording of Construction Financing on the Applicable Project Site (i.e., Project Site No, 2, Project Site No. 3, and/or Project No. 4 only), Developer fails to start the Construction of the Applicable Developer Improvements as required by the DDA for a period of ninety (90) days after Notice thereof from the City. subject to extension pursuant to Section 602 of the DDA. upon the following payment to the Developer: Project Site No. 2 $1,000.000 Project Site No. 3 $1,000,000 Project Site No. 4 $1.000.000 E After the recordation and funding of Construction Financing, without limiting the rights as set forth in Section 311, 501. 502 of the DDA and without affecting the priority of the lien of the Holder's deed of trust or mortgage. the City has the right, at its election, to reenter and take possession of the Applicable Project Site(s) with all Applicable Developer Improvements thereon, and terminate and Revest in the City the estate conveyed to the Developer only if after the recordation and funding of Construction financing and prior to the issuance of the final Release of Construction Covenants. the Developer (or its successors in interest) shall: (i) fail to start the construction of the Applicable Developer Improvements as required by this Agreement for a period of ninety (90) days after Notice thereof from the City subject to extension pursuant to Section 602 of the DDA : or (ii) abandon or substantially suspend construction of the Applicable Developer Improvements required by this Agreement for a period of ninety (90) days after Notice thereof from the City subject to extension pursuant to Section 602 of the DDA: or (iii) contrary to the provisions of Section 103 of the DDA. Transfer or suffer any involuntary Transfer in violation of the DDA, and such Transfer, if it is a Transfer requiring approval by the City, is not rescinded within thirty (30) days of Notice thereof from City to Developer. F. The right to reenter, terminate and Revest (as set forth in paragraphs D and E hereof) is subject to the quiet enjoyment. and, if applicable, the right to continue to Complete construction by (i) tenants or other occupants who have (a) executed leases or subleases and (b) incurred substantial expenses in connection with the design and/or construction of improvements required to be constructed by such tenant under such lease or sublease and (ii) Developer, in the case where the Developer is in Default and. vis a vis a Holder or its Nominee. shall be exercisable only if: (i) Such Holder (or its Nominee) (a) shall have failed to cure any Default within the applicable cure periods granted to such Holder (or its Nominee), or (b) shall have given City written notice that it will not cure any such Default or condition or that it will otherwise not comply with the terms and conditions of the DDA, and (ii) City, within ninety (90) days after the occurrence of anv events described in subparagraph (1.) immediately above. shall commence the exercise of its Right of Entry and shall pay to Holder (or its Nominee) in immediately available funds. the Loan Balance prior to Revesting. In the event of a failure or refusal to F-3 DOCSOC/1706855v°23/022363-0015 cure a Default, as described in subparagraph (1.) above. City's sole remedy vis a vis Holder shall be the exercise of the re-entry right and Revesting in accordance herewith. G. The conditions to the commencement of the exercise of the Citv's right to re-enter and Revest as described in D and E above shall be applicable whether the re-entry and Revesting occurs (a) prior to foreclosure (or deed in lieu of foreclosure) by the: Holder (or its Nominee) under its mortgage or deed of trust; or (b) after Holder (or its Nominee) acquires title to the Property by foreclosure (or deed -in - lieu of foreclosure) under its mortgage or deed of trust. H. Upon the Revesting in the City of title to the Property. as provided in this Section 503. the City shall, pursuant to its responsibilities under state law. use its reasonable efforts to resell the Property, as soon and in such manner as the City shall find feasible and consistent with the objectives of such law, as it exists or may be amended, to a qualified and responsible party or parties (as determined by the City) who will assume the obligation of constructing or Completing the Applicable Developer Improvements. or such improvements in their stead as shall be satisfactory to the City in its sole and absolute discretion. (i) First. to reimburse the City. on its own behalf or on behalf of the City. all costs and expenses incurred by the City. excluding City staff costs. but specifically. including, but not limited to. any expenditures by the City in connection with the recapture. management and resale of the Property (but less any income derived by the City from the applicable Project Site, or part thereof in connection with such management); all taxes, assessments and water or sewer charges with respect to the applicable Project Site. or part thereof which the Developer has not paid (or. in the event that the applicable Project Site is exempt from taxation or assessment of such charges during the period of ownership thereof by the City. an amount, if paid. equal to such taxes. assessments. or charges as would have been payable if the applicable Project Site were not so exempt):. any payments made or necessary to be made to discharge any encumbrances or liens existing on the applicable Project Site at the time or Revesting of title thereto in the City. or to discharge or prevent from attaching or being made any subsequent encumbrances or liens due to obligations. defaults or acts of the Developer. its successors or transferees: any expenditures made or obligations incurred with respect to the constructing or Completion of the Applicable Developer improvements or any part thereof on the applicable Project Site: and any amounts otherwise owing the City. and in the event additional proceeds are thereafter available. then (ii) Second. to reimburse the Developer. its successor or transferee. up to the amount equal to the sum of (a) actual and direct third party costs incurred by the Developer for the Applicable Developer Improvements existing on the Applicable Project Site, at the time of the re-entry and possession. less (b) any gains or net income received by the Developer from the Propert). or the improvements thereon. Any balance remaining after such reimbursements shall be retained by the City as its property. The rights established in this Section H. except as may otherwise be provided in this Section H. are not intended to be exclusive of any other right, power or remedy. but each and every such right. power. and remedy shall be cumulative and concurrent and shall be in addition to any other right. power and remedy authorized 'herein or now or hereafter existing at law or in equity. These rights are to be interpreted in light of the fact that the City, will have conveyed the Site. to the Developer for development purposes. and not for speculation in undeveloped land. 1. The Property is conveyed to Grantee subject to "Surviving Covenants "Surviving Covenants" means the covenants. obligations and promises of Developer hereunden including without limitation the covenants. obligations and promises set forth in Section 103, 103.1 103.3. 103.4, 2041, 204.3. 204.4. 304 through 309. inclusive. 31 1.4. 312, 400. 401, 503. 603. 604, and 624 of the DDA. The F-4 DOCSOC/I 7063»x23/022363-001; Surviving Covenants shall survive the Closing. run with the land and be binding upon heirs, successors and assigns of Developer. The Covenants contained in Sections 10' ). 401 of the DDA, and the Declaration C� shall remain in effect in accordance with their respective terms. The Covenants contained in Sections 204.3. 204.41.307, 3091. 401.1. 402, 403. and 603 ofthe DDA shall remain in effect in perpetuity. J. All covenants without regard to technical classification or designation shall be binding for the benefit of the Grantor and its respective successors and assigns. Such covenants shall be covenants running with the land in favor of the Grantor and its respective successors and assigns for the entire period during, which such covenants shall be in force and effect. without regard to whether the Grantor is or remains an owner of ariv land or interest therein to which such covenants relate. The Grantor, in the event of any breach of any such covenants, shall have the right to exercise all the rights and remedies and to maintain any actions at iaw or suits in equity or other proper proceedings to enforce the curing of such breach. F-5 DOCSOC/1706855N 23/022363-001 IN WITNESS WHEREOF. the Grantor and Grantee have caused this instrument to be executed on their behalf by their respective officers hereunto duly authorized, this day of . 20 GRANTOR: CITY OF ANAHEIM, a California municipal corporation and charter city Dated: .20 By: City Manager ATTEST: LINDA N. ANDAL, CITY CLERK City Clerk APPROVED AS TO FORM: MICHAEL HOUSTON, CITY ATTORNEY Theodore J. Reynolds Assistant Cite Attorney The undersigned Grantee accepts title subject to the covenants hereinabove set forth. GRANTEE: a Dated: .20 By: Its: F-6 DOCSOC/1706855v23/022363-001 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 personally appeared _ , before me. ) ss. (Print Name of Notary Public) , Notary Public. 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 of Notary Public OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER ❑ Individual ❑ Corporate Officer Title(s) Partner(s) ❑ Limited Attorney -In -Fact Trustee(s) Guardian/Conservator Other: Signer is representing: Name Of Person(s)6r Entity(ies) DOCSOC/1706855 23/02'_363-0015 ❑ General DESCRIPTION OF ATTACHED DOCUMENT Title Or Type Of Document Number Of Pages Date Of Documents Signer(s) Other Than Named Above 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 ss' COUNTY OF On before me, , Notary Public, (Print Name of Notary Public) personally appeared who proved to me on the basis of satisfactory evidence to be the person{s) s) whose names) 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 ot Notary Public OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER E] Individual 0 Corporate Officer 7 13 Ej Title(s) Partner(s) El Limited Attorney -In -Fact Trustee( s) Guardian/Conservator Other: Signer is representing: Name Of Person(s) Or Entity(ies) DOCSOC/i706855N,23/02236' —001 S El General DESCRIPTION OF ATTACHED DOCUMENT Title Or Type Of Document Number Of Pages Date Of Documents Signer(s) Other Than Named Above EXHIBIT G CONCEPTUAL SITE PLAN AND BASIC CONCEPT DRAWINGS Proiect Site No. 2 — HomeMADE G-1 DOCSOC/i706855a23/02236 -00: H::BdFi SAGF HOMEMADE .u� DOCSOC/1906855N•23/022363-0015 a AV i. Se 1� S$ h. µ , EXHIBIT G-3 DOCSOC/1 706855v23/022363-001 5 EXHIBIT G-4 DOCSOC/1706855v23/022363-0015 Ilia L lop rt EXHIBIT G -J DOCSOC/1706855v23/022363-0015 Project Site No. 3 — Barn G-6 Docsoc/i706855v23/022363-001 G-7 DOCSOC/1706955v23/022363-0015 THE MIX OF USES FOR BARN REPRESENTS AN OPPORTUNITY'TO CREATE A VIBRANT PLACE B,rn_ rsabrtaurwl dbya...a-ami Ne a ravo ,rv;:x•,«.<•• a zn ocN• tuxliat.91.1ted -Ogg 'enarottrtma..ine flIle,rwra as ::wctarz „Izte:rF �t_,. 4.9ry $pit trrtr and $etKtat. d CNC i3asi;rut�- !., tr.<+..:.•.:=t a�i.r a :rt:a'.tr, v,.iun u' annndrttwa4nG CfRCiri asa xW., �Usxr€ES.i Aadreutny/fea 6rmweg troeran m Cteatirevaxk envN*mn:s, BARN nas a ry� of ereurre nt*rte sr�f^ bull 4r tt caatinptM9tltatx tlyd RrcMMaf ea4WD4rd:w:: mx: mapuar�. into 4ttxcz ut11 ham. st,se� atttCnPi:2i to 1tttUCa aWYaeaa M a[aRYFS. "7MM1Q k inn„ naln xV! adlClrt 1rOn1 spral[M hHn rn2nR Fnrif! a4t%Caf4r,gplR�ek4,Ja^.>ti<Il ailhui2 A`t�s9Uy.4dlabfl!tlke an:Af.".e-. $;. ic>11er. catC. Pia15114t. 54:.: I: .9wrAedB 4?:a9W an# dU511r� fB4.cYi!tcra prMr�aa ItgtrNY a+4md�ZCCxOra acaCa tot" r�v,:l (:las; d cn•v. aaT+!ranRtuses but,i.—It. au:rtxxi,cawatd¢aapetttrre tial LomLvnles e*r—cwri; fa ARTS ;.8 agtRsafay;7artnf>. Cldatpa F�meiM, Iia � 1,. i_ q-; Iy d4Mgnnd L9lniG'HIR Fnepmlipe inU'Ci.: Tt vam®7 toxuaf-an a�cawlKt ln4braliva UaslCnars amt rv,.rr: rn,. io:!s ;n;;.; n,�H c�.r.-.o, dcraafWO LamIdS1M-ttl6aa that Narkf3ihn p141ft1 a'wN.l ani^.Y�`:rza: w9l�,:ll �',5:'-arc.; 4Y tha C4aalnraltYainlemnx N W WY.H�MI hprr.e. RESIDENTIAL nr c:r•. �GWn r. Ba•: ^SfEfid�r. i,rlue ��a=:tun It t::r_ L_..It± .n R.,sa t,!Wt tw-,s FARM gi.YnC �ci�151M '. i' :n M1v cot qpn ai^. Uc r, pE-eNtre'-ax: -�� fr�:l• G-8 DOCSOC/I70685 5e23/022363-001 tiaxaiawtil �; i l:n curage w taxi iv Rail In B>,RtJ Hc,a.l a:*rl sa�•:c anin.tie: v:�th 42ARt. ami cr!CTg'5T Uutlee, Iwcbt• Fah. cDtu. c: C.k ', ' Sn:5piU2:ilt•anitr, r:cbrSatCn�lc:s.*,. i G-8 DOCSOC/I70685 5e23/022363-001 ea �' 1 ` :too1; cot ' .....,.ter. G-10 DOCSOC/1706855N°23/022363-001 e. IV If 4�z 43u M14 AL M14 lose" IL - s J4- IIC. - � G-12 DOCSOC/1706855v23/022363-001 G-1 DOCSOC/1706855%,23/022363-001 Proiect Site No. 4 — Burns/Orgeron G-14 DOCSOC/1706855N,23/01_2363-001 ARTISTS IN RESIDENCE G-1 DOCSOC/1706855v23/022363-001 Goncex;t vd,�r - 8r.=tiers Kta�s � `,W "ArEFP & AN&t;EiN~ 3LYC) i �- �A G-1 DOCSOC/1706855v23/022363-001 Goncex;t vd,�r - 8r.=tiers Kta�s � `,W "ArEFP & AN&t;EiN~ 3LYC) i �- m EXHIBIT H PARKING EASEMENT AGREEMENT RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO City of Anaheim 201 S. Anaheim Boulevard Anaheim. California 92805 Attn: Communitv Development Director With a copy to: Lab Holding. LLC 709 Randolph Avenue Costa Mesa. California 92626 Attention: Shaheen Sadeghi RECORDED FOR THE BENEFIT OF THE CITY OF ANAHEIM AND IS EXEMPT FROM FEE PER GOVERNMENT CODE §§ 27383 AND 6103 PARKING EASEMENT AGREEMENT This PARKING EASEMENT AGREEMENT (this "Agreement") is entered into as of . 2016. by and between the CITY OF ANAHEIM. a California municipal corporation and charter city and municipal corporation (the "City"'), and LAB HOLDINGS, LLC_. a California limited liability company (the "Developer'). RECITALS A. The City and Developer entered into that certain Disposition and Development Agreement dated for purposes of identification only as of 2016 (as may be amended from time to time, the "DDA"). The DDA provides for. among other things, the development of certain real property located in Anaheim. California, referred to in the DDA as "Project Site No. 1." which is also sometimes referred to as the* "Packing District." Project Site No. 1 includes a two-story restaurant and retail development known as the "Packing House." a single -story retail development occupied by a restaurant and brewery, known as the "Packard Building." a park known as "Farmers Park" and another parcel currently being developed by the Developer with an approximately 10.500 square foot warehouse divided into several areas appropriate for private operation as a brewery. winery, or other food or beverage producer with indoor and outdoor areas known as the "MAKE Building." B. City owns three parcels of real property which are developed with surface parking lots as follows: EXHIBIT 1i -I DOCSOC/] 70685523/022363-001; "Parking Lot 1" (APN 037-023-09)-46 spaces "Parking Lot 2" (portion of APN 251-084-02) — 52 spaces "Parking Lot 3" (portion of APN 251-081-23 } — 19 spaces Parking Lot 1, Parking Lot 2 and Parking Lot 3 are referred to in this Agreement each individually as a "Parking Lot' and collectively as the "Parking Lots." C. In order to facilitate the development and operation of the Packing, District as contemplated by the DDA. the Citv and Developer have entered into this Agreement pursuant to which the Citv will provide perpetual easements for the use of Parking Spaces within the Parking Lots. for the benefit of the Packing District and the public" on the terms and conditions contained herein. NOW. THEREFORE, in consideration of the mutual covenants and promises set forth herein, the parties hereby agree as follows: 1. Definitions. The following capitalized terms used in this Agreement shall have the following meanings: "Alterations" is defined in Section 9 hereof. "Benefited PropeM" means. collectively, the Packing House. the Packard Building, Farmers Park and the MAKE Building. "Burdened PropertA" means Parking Lot 1. Parking Lot 2 and Parking Lot 3. is defined in the preamble of this Agreement. "City FF&E" is defined in Section 13 hereof. "Customers" means the customers and invitees of the retail tenants of Project Site No. 1. "Dail, ParkinQ Rates" means any payment made by a Customen the public or other user of a Parking Lot for parking on a daily basis. The Daily Parking Rates shall be determined from time to time by the Developer and shall not exceed the prevailing market rate for comparable garages in the City. Saturday. "DDA" is defined in Recital A hereof. "Default" is defined in Section 20.1 hereof. "Designated Business Hours" means 8:00 a.m. to 12:30 a.m. Sunday through "Developer"is defined in the preamble of this Agreement. "Director" means the City's Community Development Director. EXHIBIT H-2 DOCSOC/1706855v23/022363-0015 "Easements" means the easements granted to the Developer pursuant to Section 2 of this Agreement. "Effective Date- means the date upon which fee title to the Benefited Property is conveyed to the Developer. "Estoppel Certificate- is defined in Section 23.3. "Environmental Laws" means (i) Sections 25115, 251171, 25122.7 or 25140 of the California Health and Safer\- Code. Division 20. Chapter 6.5 (Hazardous Waste Control Law)). (ii) Section 25,316 of the California Health and Safery, Code. Division 20. Chapter 6.8 (Carpenter - Presley -Tanner Hazardous Substance Account Act). (iii) Section 25501 of the California Health and Safety Code. Division 20, Chapter 6.95 (Hazardous Materials Release Response Plans and Inventory), (iv) Section 25281 of the California Health and Safery, Code. Division 20, Chapter 6.7 (Underground Storage of Hazardous Substances), (v) Article 9 or Article 11 of Title 22 of the California Administrative Code, Division 4, Chapter 20, (vi) Section 311 of the Clean Water Act (33 U.S.C. §1317), (vii) Section 1004 of the Resource Conservation and Recovery Act. 42 U.S.C. §6901 et seq. (42 U.S.C. §6903) or (viii) Section 101 of the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. §6901 et seq. "Farmers Park'' is located within the Packing District as shown on the Site Map. "FF&E" means collectively. all furniture, fixtures and equipment. "Hazardous Materials" means anv substance, material, or waste which is or becomes regulated by any local governmental authority. the State of California. or the United States Government. including, but not limited to, any material or substance which is (i) defined as a "hazardous waste". "acutely hazardous waste". "extremely hazardous waste". or "restricted hazardous waste'' under Section 25115, 25117 or 25122.7, or listed pursuant to Section 25140 of the California Health and Safety_ Code, Division 20, Chapter 6.5 (Hazardous Waste Control Law), (ii) defined as a "hazardous substance" under Section 25316 of the California Health and Safery Code. Division 20, Chapter 6.8 (Carpenter -Presley -Tanner Hazardous Substance Account Act), (iii) defined as a "hazardous material". "hazardous substance". or "hazardous waste" under Section 25501 of the California Health and Safety Code,, Division 20. Chapter 6.95 (Hazardous Materials Release Response Plans and Inventory), (iv) defined as a "hazardous substance" under Section 25,281 of the California Health and Safety Code, Division 20, Chapter 6.7 (Underground Storage of Hazardous Substances), (v) petroleum. (vi) asbestos, (vii) polychlorinated byphenyls, (viii) listed under Article 9 or defined as "hazardous" or "extremely hazardous'' pursuant to Article 11 of Title 22 of the California Code of Regulations, Chapter 20. (ix) designated as "hazardous substances" pursuant to Section 31 1 of the Clean Water Act (33 U.S.C. Section 1317), (x) defined as a "hazardous waste" pursuant to Section 1004 of the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901 et seq. (42 U.S.C. Section 6903). (xi) defined as "hazardous substances" pursuant to Section 101 of the Comprehensive Environmental Response. Compensation. and Liability' Act, 42 U.S.C. Section 9601 et seq.. (xii) methyl -tertiary butyl ether. or (xiii) any other substance. whether in the form of a solid, liquid, gas or any other form whatsoever. which by anv Governmental Requirements either requires special handling in its use, transportation, generation. collection, storage, handling, treatment or disposal, or is defined as "hazardous" or harmful to the environment. EXHIBIT H-3 DOCSOC/1706855v23/022363-0015 "Indemnitees" means the Cite and its representatives, officials. employees, volunteers and agents. "Interest Rate" means the prime rate. as published in the Wall Street Journal from time to time. or if the Wall Street Journal is no longer published, an equivalent rate selected by the Parties. "Laws and Regulations" is defined in Section 14.1 hereof. "Liabilities" means liabilities, suits. actions. claims, demands, penalties, damages (including without limitation, penalties, fines. and monetary sanctions), giving rise to losses, costs or expenses (including, without limitation, consultants' fees, and reasonable attorneys' fees) of any kind or nature and for any damages. including damages to property or injuries to persons, including accidental death, (including reasonable attorneys' fees and costs in connection therewith). "MAKE Building- is located within the Packing District as shown on the Site Map. "Matters of Record" means all easements. agreements, rights-of-way. liens.. covenants. conditions, or restrictions of any nature now or hereafter affecting the Benefited Property or Burdened Property or any part thereof and constituting a matter of public record. "Mortgage" is defined in Section 13.1 hereof. "Mortaagee" is defined in Section 13.1 hereof. "Official Records" means the official records of Orange County, California. "Developer FF&E" is defined in Section 13 hereof. "Packard Building" is located within the Packing District as shown on the Site Map. "Packing District" means., collectively, the Packard Building, Farmers Park, Packing House, MAKE Building and surrounding property as shown on the Project Site Map. "Packing House" is located within the Packing District as shown on the Site Map. "Parkin, Lots" is defined in Recital E hereof. The legal description of the Parking Lots is attached hereto as Attachment No. 2. "Parking Operator" is defined in Section 8 hereof. "Parking Revenues" means all revenues generated by the operation of the Parking Lots. "Parking Rules" is defined in Section 5 hereof. "Parking Spaces" means 117 parking spaces for non-exclusive use by the Developer and its Customers anywhere in the Parking Lots. "Party" means each of the Developer and City. who are jointly, the "Parties." EXHIBIT H-4 DOCSOC/1706855x23/022363-0015 "Permitted Vehicle" means passenger cars, and standard -size vans, standard -size sports utility vehicles or standard -size pick-up trucks, provided that any such vehicles do not exceed 20 feet in length or the posted height restrictions for the Parking Lots. Z� Z� "Person" means an individual. corporation, partnership, limited liability company, joint venture, association, firm, joint stock company. trust, unincorporated association, governmental authority or agency, or other entity. "Presence" means the presence. release., use. generation, discharge, storage and disposal of any Hazardous Materials. "Project Site No. F is defined in the DDA and is shown on the Site Map. The legal description of the Project Site No. I is attached hereto as Attachment No. 1. "Short Term Spaces" is defined in Section 11.2 hereof. "Site Ma i means the site map showing Project Site No. I and the Parking Lots which is attached hereto as Attachment No. ' ). "Term" is defined in Section 4 hereof. 2Grant of Easements. -). II - Non -Exclusive Parking Spaces. it\ Chereby irrevocably grants to the Developer: (i) a non-exclusive easement for the benefit of the Developer., its employees and its Customers to park Permitted Vehicles in the Parking Spaces. (ii) a non-exclusive easement for the benefit of the Developer. its employees and its Customers for ingress and egress by Permitted Vehicles through the driveways and drive aisles of the Parking Lots for the purpose of access to the Parking Spaces. and (iii) a non-exclusive easement for the benefit of the Developer" its employees and its Customers for pedestrian ingress and egress through the Parking Lots for the purpose of access to the Parking Spaces. 2,2 Nature of Easements. The Easements -ranted herein shall run with the land, and are irrevocable -except as expressly provided herein. but are not intended to grant a fee interest or leasehold interest in the Parking Lots or any other real propertt 2.3 Dominant and Servient Estates. Each easement granted pursuant to the provisions hereof is expressly and solely for the benefit of the Benefited Property, and the Benefited Property shall be the dominant estate and the Burdened Property shall be the servient estate. All easements created by or pursuant to this Agreement shall be appurtenant easements and not easements in gross. Except as set forth in Section 4. any easement granted pursuant to the provisions of this Agreement may be abandoned or terminated only by execution of an agreement so abandoning or terminating the same. by the Developer of the dominant estates and consented to by the Mortgagee, if any, of the dominant estate. None of the easements created pursuant to this Agreement shall be relocated without the written consent of the Developer and its Mortgagees. _ gees. EXHIBIT 1-1-5 DOCSOC/1 706855N'-'13/022363-0015 Reserved. 4. Term. The term of this Agreement (the "Term") shall commence upon the Effective Date and shall continue in perpetuity unless (a) the Agreement is terminated by mutual written agreement of the parties, or (b) the Agreement is otherwise terminated. as provided herein. 5. Parking Rules. Subject to the prior- written consent of the City. which consent shall not be unreasonably withheld. the Developer may from time to time enact reasonable and nondiscriminatory policies, rules and regulations for the operation and use of the Parking Lots (the "Parking Rules"). Developer covenants that it will not enact Parking Rules that unreasonable interfere with the use of the Parking Lots by the public. In the event of a conflict between the provisions of this Agreement and the Parking Rules in effect from time to time, the provisions of this Agreement shall prevail. 6. Operation. Maintenance and Repair. The Developer shall. at the Developer's sole cost and expense, operate, maintain and repair, or cause to be operated, maintained or repaired. the Parking Lots in good order. condition and repair in accordance with the practices generally prevailing in the operation of structured parking within other similar mixed-use projects located in Orange County, California. Without limiting the generality, of the foregoing, Developer shall perform or cause the following to be performed: (a) Clean and maintain all surfaces of the Parking Lots and keep such surfaces level and evenly covered with the type of surfacing material originally installed thereon. or such substitute thereof as shall be equal thereto in quality, appearance and durability; (b) Remove all papers. debris, filth and refuse from the Parking Lots and wash or thoroughly sweep paved areas: (c) Remove trash from trash receptacles and clean trash receptacles; (d) Clean. maintain, repair and replace entrance. exit and directional signs. traffic control signage. markers and lights into and within the Parking Lots: (e) Clean lighting fixtures and relamp and reballast. (f) Maintain. repair and replace striping and curbing; (g) Maintain and repair any structures or buildings constructed in the Parking Lots, as needed: (h) Repaint and refinish all painted and finished surfaces: (i) Maintain, repair and replace, if needed. all mechanical. electrical and utility facilities and systems that are a part of or serve the Parking Lots. (j) Except as otherwise provided herein. maintain. repair and replace all parking revenue control equipment, parking access control equipment. security systems and traffic barriers: EXHIBIT H-6 DOCSOC/1706855\ 23/022363-0015 (k) Make all repairs, improvements or alterations required to comply with applicable Laws, and (1) Enforce the Parking Rules. 7. Failure to Maintain. In the event that Developer or its Parking Operator fails to commence to maintain or repair the Parking Lots in the conditioned required by this Agreement within five (5) business days after written notice from the City, then the City shall give a second notice to Developer and its Parking Operator stating the maintenance or repair Developer and/or its Parking Operator has failed to perform. If within five (5) business days after- such second written notice, Developer has failed to commence such repair or maintenance, the City may (but shall not be required to) perform such repair or maintenance at Developer's cost, in which event Developer shall reimburse the City on demand for all reasonable out-of-pocket costs and expenses incurred by the Citv in connection therewith, with interest accruing thereon at the Interest Rate. Notwithstanding the foregoing, in the event the maintenance or repair cannot reasonably be completed within the time periods set forth above, City shall not have the right to perform any such repair or maintenance so long as Developer or its Parking Operator has commenced such maintenance or repair within the time periods set forth above and diligently pursues the same to completion. 8. Parking Operator. Developer may from time to time delegate its operation, maintenance and repair obligations for the Parking Lots to a qualified third -party parking operator ("Parking Operator"). Community Management Corporation ("CMC") shall serve as the initial Parking Operator. In the event that the Developer elects to change the Parking Operator, the identity of such Parking Operator shall be subject to the prior written approval of the City, which approval shall not be unreasonably withheld. 9. Alterations. Developer shall have the right from time to time, at its expense, to make additions, alterations or improvements (collectively, "Alterations") to the Parking Lots, provided that (a) the Alterations do not unreasonably interfere with the use of the Parking Lots by the public, and (b) the Alterations shall have been approved by the Director. in his reasonable discretion. As used in the Agreement. the term "Alterations" shall include any re -striping of the Parking Lots. 10. Parking Revenues. All Parking Revenues attributable to Daily Parking Rates shall be deposited in an account (the "Reserve Account") as designated by Developer to be used for future operating, maintenance and capital improvements and/or replacements to the Parking Lots. Developer shall annually, on or before March 31, provide an accounting to the City of all Parking Revenues deposited into the Reserve Account and all expenditures from the Reserve Account during the prior calendar year. 11. Use of Parkinrr Lots. 11.1 Parking Spaces. Customers shalt have the non-exclusive right to use the Parking Spaces in common with the public and other users of the Parking Lots. The Parking Spaces shall be available on a first come, first served basis, during all operating hours for the Parking Lots. There will be no overnight parking in the Parking Spaces, but the Parking Spaces will be available for use by Customers until at least one hour after the last retail tenant closes for business each night. The Parking Spaces shall not be used by retail tenants of Project Site No. 1 for employee parking except as expressly permitted by the City, in writing, from time to time. Employee parking shall be limited to Designated Business Hours. EXHIBIT H-77 DOCSOC/1706855v23/022363-0015 11.2 Short Term Parking. Unless expressly authorized by the City in writing, none of the Parking Spaces shall be restricted as short teen parking spaces. 11.3 Validation. Parking in the Parking Lots shall be free for up to two (2) hours with validation (as described below). After two (2) hours of validated parking. Daily Parking Rates will apply. Developer may institute a validation program for the public and retail parking in the Parking Lots. The Developer shall be solely responsible for the cost of validation machines. if any, used in connection with the operation of the Parking Lots. 11.4 Citv's Reserved Rights. City reserves the right to utilize the Parking Lots for public and other parking purposes, so long as the same do not unreasonably burden Developer's use of or interfere with the use of the Easements granted hereunder to the Developer. 12. Access Control Equipment. The parties agree as follows with respect to the access control equipment installed or to be installed within the Parking Lots: Any access control systems for the Parking Lots will be installed, operated, maintained, repaired. and replaced (as needed) by the Developer at its sole cost and expense; provided that the Developer may use the Reserve Account to pay for such costs. Unless and until an access control system is installed at the entrance to each of the Parking Lots, the Developer shall take reasonable steps (which may include hiring attendants) to ensure the use of the Parking Structures complies with the terms of this Agreement. 13. Ownership of FF&E. During the entire Term and thereafter. the Parking Lots and all Alterations thereto, shall be owned by and shall be considered the property of Cite. All FF&E that are made, constructed or placed in or on the Parking Lots by City (the "City's FF&E"), and all changes.. alterations, improvements and additions thereto, shall also be owned by and shall be considered the property of City. All FF&E that are made. constructed or placed in or on the Parking Lots by Developer (the "Developer FF&E"), if any, and all changes, alterations. improvements and additions thereto, shall be owned by and shall be considered the property of the Developer. Upon the expiration or earlier termination of this Agreement, all of the City's FF&E shall be owned by and considered the property of City and all of the Developer FF&E shall be owned by and considered the property of Developer, and Developer shall have the right, but not the obligation, to promptly remove its Developer FF&E. The Developer shall be responsible for the cost of any repairs to the Parking Lots and the City's FF&E caused by such removal. Any Developer FF&E not removed by Developer within sixty (60) days following the expiration or earlier termination of this Agreement shall thereafter become the property of the City. 14. Matters of Record. Laws and Permits. 14.1 Matters of Record. Laws and Permits in General. The City and Developer shall comply with all Matters of Record, and all applicable federal, state and local laws, statutes, orders, ordinances, rules, regulations. plans, policies and decrees (collectively, the "Laws and Regulations") with respect to its activities on and/or in the Parking Lots. The Developer shall promptly furnish to City copies of any and all permits, licenses and approvals which they receive or submit with respect to the activities conducted in connection with the Easements. EXHIBIT 11-8 DOCSOC/1706855v23/022363-0015 14� Environmental Laws. 14.2.1 Developer shall not knowingly_ and shall not knowingly permit any third party to. use, generate. store or dispose of any hazardous material on, under, about or within the Parking Lots in violation of the Environmental, Laws. 14.2.2 The Developer shall comply in all material respects, to the best of its reasonable ability. with the requirements of the Environmental Laws and shall notify City immediately in the event of anv discharge or discovery by Developer of any Hazardous Materials at, upon. under or within the Parkin-, Lots-, provided, however, Developer. shall have no obligation to remediate aDv Hazardous Materials on the Parking Lots the Presence of which first occurred before the Effective Date. The Developer shall promptly forward to City copies of all orders. notices. permits, applications or other communications and reports forwarded or received by in connection with an -v discharge or the presence of any Hazardous Material or any other matters relating to the Environmental Laws. as they may affect the Parking Lots. 14 2.3 Developer Indemnity re Hazardous Materials. Developer shall indernnify, defend and hold the Indemnitees harmless from and against all Liabilities arising from. related in any respect to, or as a result of (i) the Presence of Hazardous Materials on the Parking Lots which Presence first occurred after the Effective Date, and (11) the Presence of Hazardous Materials on the Parking Lots. which Hazardous Materials were not Hazardous Materials at the Effective Date, but became Hazardous Materials after the Effective Date as a result of an amendment to.. or interpretation of, the Environmental Law-. provided, that none of the same were directly and proximately caused by City or any of its agents. employees or contractors. City shall cooperate with Developer to ensure that City has assigned to Developer any and all rights that City acquired in its acquisition of the Parking Lots or any portion thereof to permit Developers prosecution of claims against any third parties who are potentially responsible for such Hazardous Materials. 14.2.4 Developer Release. Developer agrees to and hereby shall release the Indemnitees from and against all Liabilities arising from, related in any respect to, or as a result of (i) the Presence of Hazardous Materials on the Parking Lots that first existed on the Parking Lots as of the Effective Date. but were discovered after the Effective Date. and (ii) the Presence of Hazardous Materials on the Parking Lots. which Hazardous Materials were not identified and/or defined as such under the Environmental Laws as of the Effective Date but became Hazardous Materials after the Effective Date as a result an amendment to, or interpretation of, the Environmental Law. Notwithstanding the foregoing. Developer is not releasing any person or entity other than the Indemnitees. 15. Taxes. Developer shall be solely responsible for the payment of any and all real property taxes. impositions or similar charges levied against the Parking Lots. including. any possessory interest taxes relating to the use and occupancy of the Parking Lots which may be imposed on the interest of the Developer in the Parking Lots. This provision constitutes written notice to the Developer pursuant to California Revenue and Taxation Code Section 107. 16. Assignment and Subletting. Except as otherwise expressly provided in this Agreement. Developer shall not voluntarily or involuntarily assign its interest in this Agreement. the Easements granted hereunder or in the Parking Lots, separate and apart from any Transfer (as defined in the DDA] of its interest in and to the Benefited Property. or grant any sub -easement or sublicense EXHIBIT H-9 DOCSOC/I 706855v23/022363-0015 with respect to all or any part of the Parking Lots. without City's prior written consent. which consent may be granted or withheld in City's sole discretion. 17. Insurance. 17.1 Insurance Policies for Deveioper. Without limiting City's right to indemnification, it is agreed that Developer shall cause to be secured prior to the Effective Date. and maintain during the Term, comprehensive general liability, insurance, or commercial general liability insurance, including coverage for contractual liability, personal injury liability, products/completed operations liability, broad -form property damage, independent contractor's liability and fire damage legal liability, in an amount of not less than Two Million Dollars ($2.000,000.00) per occurrence, combined single limit. written on an occurrence form. The Director, with the consent of the City's Risk Manager. is hereby authorized to reduce the requirements set forth above in the event the Director determines that such reduction is in Cirv's best interest. 17.2 Insurance Requirements for Developer. The insurance policies maintained by the Developer under Section 17.1 shall comply with the following requirements: (a) Each insurance policy shall provide that the insurance shall not be canceled, materially limited in scope or coverage, or non -renewed until after thirty (30) days' prior written notice has been given to the City Clerk, 200 S. Anaheim Boulevard, Anaheim, CA 92805. except in the event of cancellation for non-payment of premium which shall provide for not less than ten (10) days' notice" (b) Each insurance policy shall provide as follows: "It is agreed that any insurance or self-insurance maintained by the City of Anaheim shall apply in excess of and not contribute with insurance provided by this policy to the extent of insured's obligations under the Parking Easement Agreement." (C) Each insurance policy shall contain the following clause: ``The City of Anaheim and its officials, agents; employees, representatives, and volunteers are added as additional insureds as respects operations and activities of or on behalf of the named insured, performed under the Parking Easement Agreement." (d) Prior to the Effective Date. the Developer shall deliver to City (i) insurance certificates confirming the existence of the insurance required by Section 17.1. and including the applicable clauses referenced above and (ii) endorsements to the above -required policies, which add to these policies the applicable clauses referenced above. Such endorsements shall be signed by an authorized representative of the insurance company and shall include the signatory's company affiliation and title. Should it be deemed necessary by City, it shall be the Developer's responsibility to see that City receives documentation. acceptable to City. which sustains that the individual signing such endorsements is indeed authorized to do so by the insurance company. Also. City has the right to reasonably request that the Developer provide City copies of any insurance policies required under this Agreement_. which request shall be reasonably honored by the Developer within a reasonable time. (e) Nothing herein contained shall be construed as limiting in any way the extent to which the Developer may be held responsible for payment of damages to persons or property resulting from the performance of the Developer or its subcontractors under this Agreement. EXHIBIT H-10 DOCSOC/1706855N23/022363-0015 18. Indemnification by the Developer. The Developer shall defend, indemnify. assume all responsibility, for., and hold the Indemnitees. harmless from, all claims, demands, damages, defense costs or liability of any kind or nature relating to any damages to property or injuries to persons, including accidental death (including attorneys' fees and costs), which may be caused by any of the activities or performance by the Developer under this Agreement, whether such activities or performance thereof be by Developer or i7,-, anyone directly or indirectly employed or contracted with by Developer and whether such damage shall accrue or be discovered before or after termination of this Agreement. Notwithstanding the foregoing- Developer shall not be liable to City for property damage or bodily injury caused (i) by the sole negligence of City or its designated agents or employees, or (ii) by Clt\,,`s failure to comply with the terms and conditions of this Agreement. The rights and obligations set forth in this Section 18 shall survive the termination of this Agreement. 19. Mortgagee Protections. 19.1 Provisions BcnefitinL Nlort,-,avee. This Section is for the exclusive benefit of and its terms may only be enforced by, a Mortgagee (as defined below) and its successors. assigns or participants. Provided that City has received notice of the identity and address of any such Mortgagee. City hereby covenants and agrees to faithfully perform and comply with the provisions of this Section. For purposes hereof, a "Mortgagee" shall mean the holder of any deed of trust, mortgage and/or other real property lien document executed by Developer from time to time which encumbers all or any portion of Project Site No. I (collectively. a "Mortgage"). 19.2 Permitted -Assignments. Notwithstanding any contrary provision of this Agreement', no restrictions on assignment of Developer's interest in this Agreement shall be applicable to: (i) the granting of a Mortgage by Developer, (ii) an assignment of this Agreement at a foreclosure sale under a Mortgage or in connection with a judicial foreclosure of a Mortgage-, (iii) an assignment made to a Mortaaaee in lieu of foreclosure, or (iv) any subsequent assignment by a ,--n z _ C7 Mortgagee if the Mortgagee is the assignee under an assignment referred to in clauses (ii) and (ill) above. In any such event, the Mortgagee shall forthwith give written notice of the assignment to City setting forth the name and address of the Assignee, the effective date of such assignment and including a copy of the document by which such assignment was made and by which the assignee expressly assumes and agrees to perform all the other obligations of the Developer under this Agreement-, provided, however. that the failure to provide any such notice or assignment and assumption document shall constitute a Default by such assignee under this Agreement but shall not invalidate the transfer of Developer's estate to such assignee. Any such assignee shall be liable to perform the obligations of the Developer first arising from and after the date of such assignment under this Agreement (for which purpose a reimbursement or indemnity obligation arising after such assignment as the result of an event occurring prior to such assignment shall be considered an obligation arising prior to such assignment) only so long as such assignee holds title to the Developer's estate or interest in Project Site No. 1. 193 Provisions. of a Mortgage. City herebv agrees that a Mortgage may, at the election of the Mortgagee, include provisions which provide: (a) For the entry of such Mortgagee upon the Parking Lots during business hours, without notice to City or the Developer. to view the state of the Parking Lots, (b) That a Default by the Developer under this Agreement shall constitute a default under the Mortgage,:, EXHIBIT 14-11 DOCSOC/1706855v23/022363-001 5 (c) For an assignment of all or any portion of the Developer's rights under this Agreement, including without limitation, the Developer's right. if any, to terminate, cancel, modify, change, supplement, alter or amend this Agreement; (d) For the foreclosure of the Mortgage pursuant to a power of sale, by judicial proceedings or other lawful means and the subsequent sale of the estate or interest to the purchaser at the foreclosure sale and a sale by such purchaser if the purchaser is the Mortgagee: (e) For the appointment of a receiver_. irrespective of whether the Mortgagee accelerates the maturitv of all indebtedness secured by the Mortgage: and (f) For the right of the Mortgagee or the receiver to enter and take possession of the Developer's interest under this Agreement. to collect the subrentals, issues and profits therefrom and to cure any default under the Mortgage or any Default by the Developer under this Agreement. 19.4 No Termination. Except as expressly set forth in this Agreement, no action by Developer to cancel. surrender, or modiA the terms of this Agreement shall be effective for any purpose or binding on any person without the prior written consent of each existing Mortgagee of Developer. which consent may be withheld in any such Mortgagee's reasonable discretion. 19.5 Notices. If City shall give any notice, demand. election or other communication required or permitted to be given hereunder including. without limitations, a notice of a Developer Default to the Developer, then City shall give a copy of each such notice to the Mortgagee at the address designated by it and such notice shall be effective upon receipt at such address. No notice given by City to the Developer shall be binding upon or affect such Mortgagee unless a copy of such notice shall be given to it pursuant in this Section. In the case of an assignment of such Mortgage or change in address of such Mortgagee, such assignee or Mortgagee may change the address to which such copies of notices are to be sent by delivering written notice thereof to Citv. 19.6 Performance of Covenants. Each Mortgagee shall have the right to perform any term, covenant or condition and to remedy any Default by the Developer under this Agreement, and City shall accept such performance with the same force and effect as if furnished by the Developer. 19.7 Delegation to Mortgagee. The Developer may delegate irrevocably to Mortgagee the non-exclusive authority to exercise anv or all of Developer' s rights hereunder, but no such delegation shall be binding upon City unless and until either the Developer or the Mortgagee shall give to City a true copy of a written instrument effecting such delegation. Such delegation of authority may be effected by the terns of the Mortgage itself in which case service upon City or an executed counterpart or conformed copy of such Mortgage. together with written notice specifOng the provisions therein which delegate such authority to such Mortgagee, shall be sufficient to give City notice of such delegation. 19.8 Default by Developer. 19.8.1 Monetary Default. In the event of a Default by Developer in the payment of am monetary obligation hereunder. City agrees not to terminate this Agreement unless City provides written notice of such Default to any Mortgagee and such Mortgagee shall have failed EXHIBIT 14-12 DOCSOC/1706855v23/022363-0015 to cure such Default within thirty (30) days following receipt by such Mortgagee of written notice from City that such Default remained uncured following the expiration of the Developer's cure period. 19.8.2 Non -monetary Default. In the event of a Default by the Developer in the performance or observance of any non -monetary term. covenant, or condition to be performed by it hereunder, City agrees not to terminate this Agreement unless City provides written notice of such Default to any Mortgagee and such Mortgagee shall have failed to cure such Default within sixty (60) days following receipt by such Mortgagee of written notice from City that such Default remained uncured following the expiration of the Developer's cure period; provided that if such Default is curable by such Mortgagee without possession of the Developer's interest in this Agreement but the cure cannot reasonably be effected within such sixty (60) day period, then such 60 -day period shall be extended so Ion- as such Mortgagee promptly commences cure (in any event, within such initial 60 -day period), and thereafter diligently prosecutes such cure to completion; and provided further that if such Default cannot practicably be cured by the Mortgagee without taking possession of the Developer's interest in this Agreement, or if such Default is not susceptible of being cured by the Mortgagee; then City shall not terminate this Agreement if and as long as the Mortgagee shall (i) institute foreclosure proceedings and diligently prosecute the same to completion (or, in its absolute discretion, acquire the Developer's estate hereunder by deed in lieu of foreclosure on or before the date on which the foreclosure sale would otherwise have occurred), (ii) commence such cure within thirty (30) days following such foreclosure or acquisition. and (iii) thereafter diligently prosecute such cure to completion. The Mortgagee shall not be required to institute or diligently continue with foreclosure proceedings as provided above if and when such Default shall be cured by the Developer. 19.8.3 Other Defaults. Nothing herein shall preclude City from exercising any of its rights or remedies with respect to any other Default by the Developer during any period of such forbearance, but in such even the Mortgagee shall have all of its rights provided for herein. 19.8.4 Mortgaeee Not Obligated to Cure Default. A Mortgagee shall not have any obligation to cure any Default by the Developer under this Agreement. 19.9 Bankruptcy Events. In no event shall City have any right to terminate this Agreement based on the bankruptcy or insolvency of the Developer, as long as the Developer is not otherwise in Default hereunder. 19.10 Further Amendments. City and the Developer hereby agree to cooperate in including in this Agreement by suitable amendment from time to time any provision which may reasonably be requested by any proposed Mortgagee for the purpose of implementing the Mortgagee protection provisions contained in this Agreement and allowing such Mortgagee reasonable means to protect or preserve the lien of the Mortgage on the occurrence of a Developer Default. Citv and the Developer each agree to execute and deliver (and to acknowledge, if necessary, for recording purposes) any agreement reasonably necessary to effectuate any such amendment; provided. however, that any such amendment shall not in any material respect adversely affect any rights of City under this Agreement. 19.11 Personal Liability-° of Mortgaaee. No Mortgagee shall become personally liable for the performance or observance of any covenants or conditions to be performed by the Developer unless and until such Mortgagee becomes the owner of the Developer's estate or EXHIBIT H-13 DOCSOC/1706855v23/022363-0015 interest hereunder upon the exercise of any remedy provided for in its Mortgage. Thereafter such Mortgagee shall be liable for the performance and observance of such covenants and conditions only so long as such Mortgagee owns such interest. 19.12 More Than One Mort>aaee. In the event two or more Mortgagee each exercise their rights hereunder and there is a conflict which renders it impossible to comply with all such requests, the Mortgagee whose Mortgage would be senior in priority if there were foreclosure shall prevail. 20. Defaults and Remedies. 20.1 Enforcement of Agreement. A Park, harmed by a default or violation of this Agreement ("Default") shall have the right to enforce this Agreement against any other Parry that is in violation of, or Default under, this Agreement. and the hanned Party may prosecute anv appropriate proceedings at law or in equity against the violating or defaulting Party. The non - defaulting Party may, in any such proceeding. obtain injunctive or other equitable relief requiring the violating or defaulting Party to observe or perform this Agreement or restraining violations and Defaults under this Agreement: recover damages on account of such violation or Default; secure, by way of specific performance or otherwise. the performance of any covenant, condition, easement or restriction in this Agreement: and/or obtain any other remedy provided for at law or in equity. 20.2 Enforcement Procedures against Developer. 20.2.1 Prior to the exercise of any rights against Developer, a notice must be sent to the Developer (and its Mortgagee if such Mortgagee shall have provided its address for notices) specifying the nature of the Default. 20.2.2 In the case of a monetary Default, if the Default is not cured within ten (10) days after notice to the Developer under Section 20.2.1. the City may, for the purpose of securing such claim. impose a lien upon Project Site No. 1. Such lien may be imposed by serving written notice upon Developer and its Mortgagee, if any. which shall contain a representation of compliance with the provisions of this Section, an explanation as to the nature of the Default, together with a description of Project Site No. 1, and by duly recording a copy of said notice in the Official Records. No such lien shall exist until such notice is duly_ served and recorded as provided herein. 20.2.3 In the case of a non -monetary Default. if the Default is not cured within thirty (3 0) days after notice to the Developer under Section 20.2. 1. then the City may cure the Default on behalf and at the cost of the Developer and may, for the purpose of securing such costs, impose a lien upon Project Site No. 1. Such lien may be imposed by serving written notice upon the Developer and its Mortgagee, if any, which shall contain a representation of compliance with the provisions of this Section, an explanation as to the nature of the Default, together with a description of Project Site No. 1, and by duly recording a copy of said notice in the Official Records. No such lien shall exist until such notice is duly served and recorded as provided herein. Notwithstanding the foregoing, if more than thirty (30) days are reasonably required for cure of a non -monetary Default, the Developer shall not be in Default hereunder if the Developer shall promptly (and in any event within thirty, (3 0) days after receipt of notice under Section 20.2. 1) commence the cure of the Default and diligently prosecute the same to completion. EXHIBIT H-14 DOCSOC/17068-55v23/022363-001 20.2.4 The priority of any lien under this Section 20.2 shall be determined as of the date of filing the same in the Official Records: provided, however, any such lien shall nevertheless be subject and subordinate to the lien of any mortgage or trust deed now or hereafter affecting Project Site No. 1. Such lien shall continue until the obligation to pay such costs is fully discharged, but in no event longer than five (5) years from the date of recordation, and may be foreclosed in accordance with the laws pertaining w foreclosure of mortgages without power of sale. 20.2.5 Such lien shall secure not only the amount stated in the aforesaid notice, but also the reasonable costs and expenses of enforeinc, the same, including interest and reasonable attomevs' fees. 20.2.6 In addition to the City's other remedies available under this Agreement, under the Law or in equity, in the event of a non-monetan, Default by the Developer that is not cured within thirty (3 0) days after notice is provided to the Developer under Section 20:'.1, the City- may, at the City's option and following written notice to the Developer of such election, undertake the Developer's obligations to operate. maintain and manage the Parking Lots and in such event the City shall have the right to set Daily Parking Rates and receive and use all Parking Revenues for the purposes permitted in this Agreement. 20.' ) Enforcement Procedures avainst Cite. 20.3.1 Prior to the exercise of any rights against the City, a notice must be sent to the City specifying the nature of the Default. 20.3.2 In the case of a monetary Default, if the Default is not cured within ten (10) days after notice to City under Section 20.3.1. the Developer may pursue any rights and remedies available to Developer at law or in equity. 20.3.3 In the case of a non -monetary Default, if the Default is not cured within thirty (30) days after notice to City under Section 20.3.1- then the Developer may, in addition to its other rights and remedies at law or in equity, cure the Default on behalf and at the cost of City and pursue recovery of such amounts from the City. Notwithstanding the foregoing, if more than thirty (30) days are reasonably required for cure of a non -monetary Default, City shall not be in Default hereunder if City shall promptly (and in any event within thirty (30) days after receipt of notice under Section 20.3.1) commence the cure of the Default and diligently prosecute the same to completion. 20.4 No Termination Upon Default. Notwithstanding anything to the contrary set forth herein, no Default or violation under this Agreement. shall entitle any Party to terminate this Aareement, but such limitation shall not affect. in any manner, any other right or remed-N, which anv Party may have hereunder by reason of such Default. ll. Enforcement and Occupancy Tracking. 21.1 Enforcement Generally. The Developer shall take reasonable steps to enforce the terms of this Agreement and the Parking Rules. Without limiting the generality of the foregoing' at anv time an access control system is not installed at each entrance to the Parking Lots. the Developer and/or its Parking Operator shall institute a program to ticket and/or tow parties that use the Parking Lots in violation of the terms of this Agreement or the Parking Rules. EXHIBIT H-15 DOCSOC/I 706855N;23/022363-001 21.2 Reserved. 21.3 Occupancy Trackin. In the event that the Parking Lots become overburdened, or the City or Developer determines in good faith that parking is being abused, the Developer shall track use and occupancy of the Parking Lots. including, without limitation: (a) the numbers of vehicle entries and vehicle exits (b) the hour by hour utilization of parking spaces and monthly parking permits; (c) the number and dollar amount of all cash and validation transactions; (d) the source of validations issued; and (e) the average length of stays for validated and non - validated parkers. Using the foregoing data, the Parties shall meet and confer to discuss reasonable changes to this Agreement, provided that any changes shall be subject to the reasonable approval of both the City and Developer. 22. Notices. All notices hereunder must be in writing and. unless otherwise provided herein, shall be sent by registered or certified mail. postage prepaid, return receipt requested. overnight courier or telecopy and shall be deemed received upon the earlier of (i) if mailed, four (4) business days after the date of posting by the United States post office. (ii) if sent by overnight courier. upon receipt by the person to receive such notice, or (iii) if sent by telecopy, when sent. Any notice, request. demand, direction or other communication sent by telecopy must be confirmed within forty-eight (48) hours by letter mailed in accordance with the foregoing. Notices shall be addressed as follows (or to any other mailing address which the Party to be notified may designate to the other Party by such notice, should City or the Developer have a change of address, the other Party shall immediately be notified as provided in this Section of such change): To Citv: Citv of Anaheim 200 S. Anaheim Boulevard. 2nd Floor Anaheim. California 92805 Attention: Linda N. Andal. City Clerk Fax No. (714) 765-4105 With a copy to: City of Anaheim 201 S. Anaheim Boulevard, 10th Floor Anaheim, California 92805 Attention: John E. Woodhead IV, Community Development Director Fax No. (714) 765-4630 City of Anaheim 200 S. Anaheim Boulevard, 3rd Floor Anaheim. California 92805 Attention: Theodore J. Reynolds, Assistant Cit}' Attorney Fax No. (714) 765-5123 Stradling Yocca Carlson & Rauth 660 Newport Center Drive, Suite 1600 Newport Beach. California 92660 Attention: Thomas P. Clark. Jr... Special Counsel to Cite Fax No. (949) 823-5140 EXHIBIT H-16 DOCSOC/1706855v23/022363-0015 To Developer: Lab Holding, LLC 709 Randolph Avenue Costa Mesa, California 92626 Attention: Shaheen Sadeahi with a copy to: Allen Matkins --ck Gamble Mallory & Natsis LLP 1900 Main Street, 5th Floor Irvine. California 92614 Attention: R. Michael Joyce 23. Miscellaneous Provisions. 23.1 Attorneys' Fees. Cite and the Developer agree that in the event of litigation to enforce this Agreement or terms, provisions and conditions contained herein, to terminate this Agreement, or to collect damages for a Default hereunder. the prevailing Party shall be entitled to all costs and expenses, including reasonable attorneys' fees, incurred in connection with such litigation. 232 Nondiscrimination. Developer agrees not to discriminate against am, person or class of persons by reason of sex, color, race, creed, religion. marital status, handicap, ancestry or national origin in its activities hereunder. To the extent this Agreement provides that Developer offer accommodations or services to the public, such accommodations or services shall be offered by the Developer to the public on fair and reasonable terms. 23.3 Estoppel Certificate. Each Party shall. upon written request from any other Party. which request shall quote this Section. execute to the requesting Parte a written statement in the form of Attachment No. 4 attached hereto or such other reasonable form as may be proposed by the requesting Party (an "Estoppel Certificate") certifying (a) whether or not this Agreement is modified and whether or not this Agreement is in full force and effect (or. if there have been modifications, stating those modifications), (b) whether or not. to its actual knowledge, any Party has failed to perform an obligation under this Agreement, and if so. the nature of the failure. and (c) such other matters as may be reasonably requested by the requesting Pam. No Party shall be obligated to respond to a request to execute an Estoppel Certificate that attempts to modify any of the terms or conditions of this Agreement. An Estoppel Certificate executed by any Pam, may be relied upon by a Party or any transferee or Mortgagee of a Pam' to which such Estoppel Certificate is addressed so as to estop the part), executing the Estoppel Certificate from asserting the contrary. If a Party requests an Estoppel Certificate in a form that varies materially from the form attached hereto as Attachment No. 4, the Party requesting such Estoppel Certificate shall reimburse the other Pam_, for any reasonable out-of-pocket costs and expenses, including without limitation attorneys' fees incurred in connection with the review and approval of such Estoppel Certificate. 23.4 Waiver. Inaction by City or Developer with respect to a Default hereunder shall not be deemed to be a waiver of such Default. The waiver by either City or Developer of any Default hereunder shall not be deemed to be a waiver of any subsequent Default. 23.5 Time of the Essence. Time is hereby expressly declared to be the essence of this Agreement and of each and every_ term. covenant and condition hereof which relates to a date or a period of time. EXHIBIT H-17 DOCSOC/170685 5v23/022363-0015 23.6 Relationship of Parties. Nothing contained herein shall be deemed or construed by the Parties, nor by any third party. as creating the relationship of principal and agent or of partnership or of joint venture between the Parties, it being understood and agreed that the Developer shall not, in any way, be considered to be an officer. agent or employee of Cit}'. 23.7 Remedies Cumulative. The remedies given to the City and the Developer herein shall be cumulative and are given without impairing any other- rights given to the City or the Developer by statute or law now existing or hereafter enacted and the exercise of any one (1) remedy by the City or the Developer shall not exclude the exercise of any other remedy. 23.8 Effect of Invalidity. If any term or provision of this Agreement or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Agreement., or the application of its terms and provisions to persons and circumstances other than those to which it has been held invalid or enforceable shall not be affected thereby, and each term and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law. 23.9 Successors and Assigns. This Agreement and the covenants and conditions contained herein shall be binding upon and inure to the benefit of and shall apply to the successors and assigns of the City and to the permitted successors and assigns of the Developer, and all references to "City" or "Developer" shall be deemed to refer to and include all permitted successors and assigns of such Part}. 23.10 Entire Agreement. This Agreement and the attachments hereto contain the entire agreement of the Parties with respect to the matters covered hereby, and no agreement, statement or promise made by any Party which is not contained herein, shall be valid or binding. No prior agreement, understanding or representation pertaining to any such matter shall be effective for any purpose. No provision of this Agreement may be amended, modified or added except by an agreement in writing signed by City and Developer. 23.11 Authority. Each individual executing this Agreement on behalf of a corporation, nonprofit corporation, partnership or other entity or organization, represents and warrants that he or she is duly authorized to execute and deliver this Agreement on behalf of such entity or organization and that this Agreement is binding upon the same in accordance with its terms. Developer shall, at City's request. deliver a certified copy of its operating agreement and/or governing board's resolution or certificate authorizing or evidencing such execution. 23.12 Conflicts of Interest. No member, official or employee of City shall have any personal interest, direct or indirect, in this Agreement. nor shall any such member, official or employee participate in any decision relating to this Agreement which affect his or her personal interests or the interests of any corporation, partnership or association in which he or she is directly or indirectly interested. 23.13 Non -Liability of Members. Officials. Agents and Employees of City. No member. official, agent or employee of City shall be personally liable to Developer, or any successor in interest. in the event of any Default or breach by City or for any amount which rhay become due to Developer or Developer's successors, or on any obligation under the terms of this Agreement. Developer hereby waives and releases any claim it may have against the members, officers. employees or agents of City with respect to any Default or breach by City or for any amount which EXHIBIT PI -18 DOCSOC/1706855N223/022363-0015 may become due to Developer or its successors, or any obligations under the terms of this Agreement. Developer makes such release with the full knowledge of Civil Code Section 1542 and hereby waives any and all rights thereunder to the extent of this release, if such Section 1542 is applicable. Section 1542 of the Civil Code provides as follows: "A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor." 23.14 Non -Liability of Officers. Directors. Shareholders. Partners. Agents and Employees of Developer. No officer, director, shareholder, partner, agent or employee of Developer shall be personally liable to City, or any successor in interest, in the event of any Default or breach by the Developer or for any amount which may become due to City or City's successors. or on any obligation under the terms of this Agreement. City hereby waives and releases any claim City may have against the officers, directors, shareholders, partners, employees or agents of the Developer with respect to any Default or breach by the Developer or for any amount which may become due to City or City's successors, or any obligations under the terms of this Agreement. The City makes such release with the full knowledge of Civil Code Section 1542 and hereby waives any and all rights thereunder to the extent of this release, if such Section 1542 is applicable. Section 1542 of the Civil Code provides as follows: "A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor." 23.15 Controllinja Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California. 23.16 Captions. The captions set forth herein are for convenience of reference only and shall not affect the interpretation of this Agreement or limit or amplify any of its terms or provisions. 23.17 Recordation of Easement. This Agreement max, be recorded by any Party'. Upon the termination of this Agreement, Developer shall provide City with a recordable quitclaim deed releasing all of the Developer's interest in the Parking Lots. 23.18 City Approvals and Actions. The Director shall have the authority to make approvals, issue interpretations. waive provisions. make and execute further agreements and/or enter into certain amendments of this Agreement on behalf of the City so long as such actions do not materially or substantially change the terms of this Agreement. --Signatures Next Page -- EXHIBIT H-19 DOCSOM706855v23/022363 0015 In witness whereof. the Parties have executed this Agreement as of the respective dates set forth below. CITY: CITY OF ANAHEIM, a California municipal corporation and charter city Dated: .20_ By: ATTEST: LINDA N. ANDAL, CITY CLERK City Clerk APPROVED AS TO FORM: MICHAEL HOUSTON, CITY ATTORNEY Theodore J. Revnolds Assistant City Attorney STRADLING YOCCA CARLSON & RAUTH, Special Counsel to City Mavor DEVELOPER: LAB HOLDING LLC, a California limited liability company Dated: .20 Bv: Its: EXHIBIT 14-20 DOCSOC/1706855v23/022363-001 ACKNOWLEDGEMENTS 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 ss. COUNTY OF On before me. . Notary Public, personally appeared -'. who proved to me on the basis of satisfactory evidence to be the person(s) whose names(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(jes), 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. paragraph inv hand and official seal SIGNATURE OF NOTARY PUBLIC EXHIBIT H-21 DOCSOC/1706855\,23/022363-0015 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 before me, ss. Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose names(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 OF NOTARY PUBLIC EXHIBIT H-22 DOCSOC/I 706855\,23/022363-007 5 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 X618MMIIKON On before me, ss. Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose names(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 certiA, 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 OF NOTARY PUBLIC EXHIBIT H-23 DOC SOC/1706855N=23/022363-0015 ATTACHMENT NO. 1 LEGAL DESCRIPTION OF PROJECT SITE NO. 1 PROJECT #1: PACKING DISTRICT PACKING HOUSE The real property referred to herein is situated in the County of Orange, City of Anaheim, State of California, and is described as follows: PARCEL 3 OF PARCEL MAP NO. 2011-116 RECORDED JUNE 3. 2014 AS INSTRUMENT NO. 201400215209 IN BOOK 379, PAGES 15-20 OF PARCEL MAPS IN OFFICIAL RECORDS OF SAID COUNTY. FARMERS PARK AND PACKARD BUILDING The real property referred to herein is situated in the County of Orange, City of Anaheim, State of California. and is described as follows: PARCELS 1 AND 2 OF PARCEL MAP NO. 2011-116 RECORDED JUNE 3, 2014 AS INSTRUMENT NO. 201400215209 IN BOOK 379, PAGES 15-20 OF PARCEL MAPS IN OFFICIAL RECORDS OF SAID COUNTY. MAKE BUILDING (500 S. ANAHEIM BOULEVARD) The real property referred to herein is situated in the County of Orange, City of Anaheim, State of California. and is described as follows: PARCEL 3 OF PARCEL MAP NO. 89-311, IN THE CITY OF ANAHEIM, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS PER MAP FILED IN BOOK 260. PAGES 1 TO 4 INCLUSIVE OF PARCEL MAPS. IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPTING THEREFROM THAT PORTIONi CONVEYED TO THE CITY OF ANAHEIM IN GRANT DEED RECORDED MAY 02, 2006 AS INSTRUMENT NO. 2006000294061, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. ALSO EXCEPTING THEREFROM ALL OIL, MINERAL, GAS OR OTHER HYDROCARBON SUBSTANCES BELOW THE DEPTH OF 500 FEET. UNDER THE SURFACE OF SAID LAND. BUT WITHOUT THE RIGHT OF SURFACE ENTRY OR ANY OTHER USE OF THE LAND ABOVE SUCH 500 FOOT DEPTH, AS RESERVED IN DEED RECORDED MAY 05, 1989, AS INSTRUMENT NO. 89-238472 OF OFFICIAL RECORDS Attachment No. 1-1 to Exhibit H DOCSOC/1706855v23/022363-0015 ATTACHMENT NO. 2 LEGAL DESCRIPTION OF PARKING LOTS PARKING LOT 1— (APN 037-023-09) The real property referred herein is situated in the Count\, of Orange. City of Anaheim, State of California and is described as follows: PARCEL 4 OF PARCEL MAP NO. 2011-116 RECORDED JUNE 3. 2014 AS INSTRUMENT NO. 201400215209 IN BOOK 379, PAGES 15-20 OF PARCEL MAPS IN OFFICIAL RECORDS OF SAID COUNTY. PARKING LOT 2 — (PORTION OF APN 251-084-02) THAT PORTION OF VINEYARD LOT G-3, PER MAP FILED IN BOOK 4 PAGES 629 TO 630 OF DEEDS, MISCELLANEOUS RECORDS OF LOS ANGELES COUNTY, LYING SOUTHERLY OF A LINE PARALLEL, WITH AND 81.00 FEET SOUTHERLY FROM THE SOUTHERLY LINE OF PARCEL 3 OF PARCEL MAP NO. 89-311 FILED IN BOOK 260 PAGES I THROUGH 4, INCLUSIVE OF PARCEL MAPS OF ORANGE COUNTY, WESTERLY OF THE WESTERLY RIGHT OF WAY LINE OF CLAUDINA STREET, 60 FEET WIDE AS SHOWN ON SAID PARCEL MAP NO. 89-311, NORTHERLY OF TRACT NO. 497 FILED IN BOOK 17 PAGE 38 OF MISCELLANEOUS MAPS OF ORANGE COUNTY AND EASTERLY OF A LINE PARALLEL WITH AND 221.17 FEET EASTERLY FROM THE CENTERLINE ANAHEIM BOULEVARD AS SHOWN ON SAID TRACT NO. 497. PARKING LOT 3 (PORTION OF APN 251-081-23) That portion of the Vineyard Lot G-3. in the City of Anaheim,. County of Orange, State of California, as shown on a map recorded in Book 4, Pages 629 and 630 od Deeds. in the office of the Recorder of Los Angeles County being more particularly described as follows: Commencing at the southwesterly comer of Parcel One of Parcel Map 92-252 as shown on a map recorded in Book 281 pages 20 and 21 of Parcel Maps in the office of the Recorder of said Orange County, said point being on the centerline of Claudina Street. South 15'2935 East. 174.68 feet from the intersection with the centerline of Santa Ana Street as shown on said Parcel Map 92-252, thence along the southerly line of said Parcel One North 74'30'00 East., 30.00 feet to the easterly line of said Claudina Street and the True Point Of Beginning; thence continuing along the southerly line of said Parcel One, North 74'30'00 East. 180.00 feet; thence leaving said southerly line of said Parcel One, South 15'29'35 East. 45.00 feet, thence South 74"30'00 West. 180.00 feet to the easterly line of said Claudina Street, thence along the easterly line of said Claudina Street, North 15'20'35* West. 45.00 feet to the True Point Of Beginning. Attachment No. 2-1 to Exhibit H DOCSOC/17068 5 5 N,23/022363-0015 ELM Project Site # 1 ATTACHMENT NO. 3 SITE MAP 2 W a z _ a BROADWAY z N Lot #2 --1 52 Spaces a z 0 ¢ 0 Lot #3 19 Spaces ELLSWORTH Attachment No. 3-1 to Exhibit H DOCSOC/l 706855\,23/022363-0015 Y a 0 z J z w N ATTACHMENT NO. 3 SITE MAP 2 W a z _ a BROADWAY z N Lot #2 --1 52 Spaces a z 0 ¢ 0 Lot #3 19 Spaces ELLSWORTH Attachment No. 3-1 to Exhibit H DOCSOC/l 706855\,23/022363-0015 ATTACHMENT NO. 4 ESTOPPEL CERTIFICATE Re: Parking Easement Agreement dated as of 2016 (the "Agreement") by and between the City of Anaheim.. a California municipal corporation and charter city and municipal corporation (the "Citv"), and LAB Holdings, LLC. a California limited liability company (the "Developer"). The undersigned hereby represents, warrants and certifies as follows, recognizing that the addressee will rely on the information contained herein: 1. A true, correct, and complete copy of the Agreement is attached hereto. The Agreement is unmodified and in full force and effect, and has not been modified, supplemented, superseded, or amended in any way, either orally or in writing. All capitalized terms not otherwise defined herein shall have the meaning specified in the Agreement. 2. The term of the Agreement commenced on 2016 and shall continue in Z�l perpetuity unless (a) the Agreement is terminated by mutual written agreement of the City and the Developer, (b) the Benefited Property is no longer used for the purposes described in Recital A of the Agreement (but only as to that part of the Benefited Property that is no longer being used, and subject to reasonable periods to repair, rebuild or restore the Benefited Property). or (c) the Agreement is otherwise terminated as provided in the Agreement. 4. All amounts required to be paid by the Developer to the City pursuant to the Agreement have been paid in full as of the date hereof, and the undersigned is not aware of any other outstanding payments owed by the Developer under the Agreement, except as follows: [If none, state "None"]. 5. To the best of the undersigned's actual knowledge, no Default or event that with the passage of time or notice would constitute a Default on the part of the City or the Developer has occurred under the Agreement, except as follows: [If none. state "None"]. 6. The representative of the undersignedZr signing this Estoppel Certificate is duh authorized and fully qualified to execute this instrument on behalf of the undersigned. --Signature Next Page-- Attachment age— Attachment No. 4-1 to Exhibit H DOCSOC/1706855v23/022363-0015 This Estoppel Certificate may be relied upon by the addressee, its lender and their respective successors and assignees. Bv: Name: Title: Attachment No. 4-2 to Exhibit 1-1 DOCSOC/i 706855v23/022363-001 EXHIBIT I PUBLIC ACCESS AGREEMENT RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Anaheim 201 South Anaheim Boulevard, 10`h Floor Anaheim, California 92805 Attention: Community Development Director This document is exempt from the payment of a recording fee pursuant to Government Code Sections 6103 and 27383. AGREEMENT REGARDING PUBLIC ACCESS These AGREEMENT REGARDING PUBLIC ACCESS ("Public Access Covenants" or "Declaration") are entered into as of . 20_. by and between the CITY OF ANAHEIM, a California municipal corporation and charter city ("City'), and LAB HOLDING, LLC.. a California limited liability company ("Developer"), with reference to the following: A. City and Developer have executed an unrecorded Disposition and Development Agreement. dated as of 2016 ("Agreement"), which provides for the sale by the City to the Developer, and the development and operation by the Developer. of certain real property located in the Cite (the "Property"). The Agreement is available for public inspection and copying at the office of City Clerk. 200 South Anaheim Boulevard. Second Floor, Anaheim, California. Capitalized terms used herein and not otherwise defined shall have the same meaning as set forth therefor in the Agreement. B. The Property includes, without limitation. facilities described in the Agreement as The Packing House, Farmers Park and the Packard Building. As a material part of the consideration for the Agreement but for which the City would not have entered into the Agreement, Developer is required to grant to public, and to maintain for a period commencing as of the recording hereof and I-1 DOCSOC/1706855N,23/022363-0015 continuing in perpetuity public access to each of The Packing House, Farmers Park and the Packard Building (collectively, the "Affected Properties") as more particularly set forth herein. C. The foregoing recitals constitute a substantive part of these Public Access Covenants. NOW, THEREFORE, in exchange for good and valuable consideration, receipt of which is hereby acknowledged, Developer hereby conveys to City the following Public Access Covenants and agrees and covenants as follows. for the benefit of the City and members of the general public: 1. Availability to Public. The Developer shall maintain and preserve, or cause to be maintained and preserved, public access to each of the Packing House (excepting that facility described in the Agreement as Cook's Chapel). Fanners Park and the Packard Building. free of charge during normal business hours so long as such public use does not interfere with the business operations of the Packing House. provided that Fanners Park may be closed, in its entirety, for not more than sixty (60) private events per year and, at any time, may be subject to an entry fee for special events open to the general public; provided further that Developer may also request to limit public access for the Packing House. or a portion thereof, for special private events on an occasional basis with the prior written permission of the City Manager, which permission may be granted or withheld by the City Manager acting in his/her sole and absolute discretion. Public access as required under this Section 1 is referred to herein as the "Defined Public Access." City shall be deemed to retain an easement for the purposes of providing public access as described in the foregoing portion of Section I of this Declaration. 2. Maintenance of Facilities. Developer shall be responsible to maintain those facilities described in Section I hereof in such a manner that public access may be maintained, in addition, Developer shall maintain such facilities as otherwise required under the Agreement, including without limitation the Historic Covenants. 3. Failure to Maintain Public Access. In the event Developer does not maintain the Defined Public Access, City shall have the right to take such actions, after written notice to Developer, to remedy such deficiencies. provided that the failure by City to so do shall not exonerate or excuse Developer from its duties hereunder. However, prior to taking any such action, City agrees to notify Developer in writing if public access available does not conform to these Public Access Covenants and to specify the deficiencies and the actions required to be taken by Developer to cure the deficiencies. Upon notification of any deficiency under these Public Access Covenants. Developer shall have thirty (30) days within which to correct, remedy or cure the deficiency. In the event Developer fails to correct, remedy, or cure or has not commenced correcting, remedying or curing such deficiency, under these Public Access Covenants after notification and after the period of correction has lapsed, then City shall have the right to maintain, restore and/or preserve the Defined Public Access in accordance with these Public Access Covenants and the notice provided to Developer pursuant to the preceding paragraph. Developer agrees to pay City such charges and costs. Until so paid, City shall have a lien on that certain property listed in Exhibit "B" hereto (the "Affected Property") for the amount of such charges or costs. which lien shall be perfected by the recordation of a "Notice of Claim of Lien" against the Affected Property. Upon recordation of a Notice of a Claim of Lien against the Affected Propem�. such lien shall constitute a lien on the fee estate in and to the Affected Property prior and superior to all other monetary liens except: (i) all taxes, bonds, assessments, and other levies which. by law, would be superior thereto: I-2 DOCSOC/1706855N-23/022363-001 (ii) the lien or charge of any mortgage, deed of trust, or other security interest then of record made in good faith and for value, it being understood that the priority of any such lien for costs incurred to comply with these Public Access Covenants and the Agreement shall date from the date of the recordation of the Notice of Claim of Lien. Any such lien shall be subject and subordinate to any lease or sublease of the interest of Developer in the Affected Property or any portion thereof and to any easement affecting the Affected Proper-,, or an portion thereof entered into at any time (either before or after) the date of recordation of such a Notice of Claim of Lien. Any lien in favor of City created or claimed hereunder is expressly made subject and subordinate to any mortgage or deed of trust made in good faith and for value, recorded as of the date of the recordation of the Notice of Claim of Lien describing such lien as aforesaid. and no such lien shall in anv way defeat. invalidate., or impair the obligation or priority of any such mortgage or deed of trust. unless the mortgage or beneficiary thereunder expressly subordinates his interest, of record, to such lien. No lien in favor of City created or claimed hereunder shall in anv way defeat. invalidate. or impair the obligation or priority of any lease, sublease or easement unless such instrument is expressly subordinated to such lien. Upon foreclosure of any mortgage or deed of trust made in good faith and for value and recorded prior to the recordation of any unsatisfied Notice of Claim of Lien, the foreclosure purchaser shall take title to the Affected Property free of any lien imposed by City that has accrued up to the time of the foreclosure sale, and upon taking title to the Affected Property, such foreclosure purchaser shall only be obligated to pay costs associated with these Public Access Covenants and the Agreement accruing after the foreclosure purchaser acquires title to the Affected Property. If the Affected Property is ever legally divided with the written approval of City and fee title to various portions of the Affected Property are held under separate ownerships, then on and after the ownership of the Affected Property is divided. the burdens of the obligations in these Public Access Covenants and the charges levied by Cit-,• to reimburse City for the cost of undertaking such maintenance obligations of Developer and its successors and the lien for such charges shall be separately, levied against the specific portion of the Affected Property to which such obligations undertaken by the City relate. Upon such division of ownership. no separate owner of a portion of the Affected Property shall have any liability for the liabilities of any other separate owner of another portion of the Affected Property, and the lien shall be similarly apportioned and shall only constitute a Lien against the portion of the Affected Property owned in fee by the owner who is liable for the apportioned charges levied by City and secured by the apportioned lien and against no other portion of the Affected Property. Developer acknowledges and agrees Cite may also pursue any and all other remedies available in law or equity. Developer shall be liable for any and all attorneys' fees, and other legal costs or fees incurred in collecting said maintenance costs. Nothing set forth in these Public Access Covenants shall be construed to permit Developer to convey or transfer the Property or any portion thereof except as permitted by the Agreement. including without limitation the attachments thereto. 4. Compliance with Law. Developer shall comply with all local. state and federal laws including all Governmental Requirements and Environmental Laws (as those terms are defined in the Agreement) relating to the uses of or condition of the Affected Property. 5. Miscellaneous Provisions. a. If any provision of these Public Access Covenants or portion thereof. or the application to any person or circumstances. shall to anv extent be held invalid, inoperative or unenforceable, the remainder of these Public Access Covenants., or the application of such provision or portion thereof to any other persons or circumstances, shall not be affected thereby: it shall not be deemed that any such invalid provision affects the consideration for these Public Access Covenants, I-3 DOCSOC/1706855\•23/022363-001 and each provision of these Public Access Covenants shall be valid and enforceable to the fullest extent permitted by law. b. These Public Access Covenants shall be construed in accordance with the laws of the State of California. C. These Public Access Covenants shall be binding upon and inure to the benefit of the successors and assigns of Developer. 6. Effect of Public Access Covenants. The covenants and agreements established in these Public Access Covenants shall, without regard to technical classification and designation, run with the land and be binding on each owner of the Affected Property and any successor in interest to the Affected Property, for the benefit of and in favor of City, its successors and assigns. The covenants contained in these Public Access Covenants shall remain in effect for the periods of time specified therein. City is deemed the beneficiary of the terms and provisions of these Public Access Covenants and of the covenants running with the land, for and in its own rights and for the purposes of protecting the interests of the community and other parties, public or private, in whose favor and for whose benefit these Public Access Covenants and the covenants running with the land have been provided. These Public Access Covenants shall run in favor of City, without regard to whether City has been, remains or is an owner of any land or interest in the Affected Property or adjacent to the Affected Property. City shall have the right, if any provision of these Public Access Covenants is breached, to exercise all rights and remedies. and to maintain any actions or suits at law or in equity or other proper proceedings to enforce the curing of such breaches to which it or any other beneficiaries of these Public Access Covenants may be entitled. Term. These Public Access Covenants shall continue in effect in perpetuity. [Signatures appear on following page.] 1-4 DOCSOC/1706855v23/022363-0015 IN WITNESS WHEREOF, the parties hereto have executed these Public Access Covenants as of the day and year first hereinabove written. CITY: CITY OF ANAHEIM, a California municipal corporation and charter city Dated: . 20 By: ATTEST: LINDA N. ANDAL, CITY CLERK City Clerk APPROVED AS TO FORM: MICHAEL HOUSTON, CITY ATTORNEY Theodore J. Reynolds Assistant City Attorney City Manager DEVELOPER: LAB HOLDING LLC, a California limited liability company Dated: .20 Bv: Its: 1-5 DOCSOC/170685 5v23/0223 63-0015 ATTACHMENT NO. I TO EXHIBIT I ATTACHMENT NO. I TO EXHIBIT I DOCSOC/l 706855\213/022363-0015 ATTACHMENT NO, 2 TO EXHIBIT I LEGAL DESCRIPTION OF AFFECTED PROPERTY PROJECT #1: PACKING DISTRICT PACKING HOUSE The real property referred to herein is situated in the County of Orange. City of Anaheim. State of California, and is described as follows: PARCEL 3 OF PARCEL MAP NO. 2011-116 RECORDED JUNE 3, 2014 AS INSTRUMENT NO. 201400215209 IN BOOK 379, PAGES 15-20 OF PARCEL MAPS IN OFFICIAL RECORDS OF SAID COUNTY. FARMERS PARK AND PACKARD BUILDING The real propem, referred to herein is situated in the County of Orange, City of Anaheim. State of California, and is described as follows: PARCELS I AND 2 OF PARCEL MAP NO. 2011-116 RECORDED JUNE 3. 2014 AS INSTRUMENT NO. 201400215209 IN BOOK 379, PAGES 15-20 OF PARCEL MAPS IN OFFICIAL RECORDS OF SAID COUNTY. DOCSOC/ 170685 5 v23/022363-0015 EXHIBIT J RELEASE OF CONSTRUCTION COVENANTS This document is exempt from the payment of a recording fee pursuant to Government Code Section 27381 RELEASE OF CONSTRUCTION COVENANTS This RELEASE OF CONSTRUCTION COVENANTS (the "Release") is made by the CITY OF ANAHEIM, a California municipal corporation and charter city (the "City"), in favor of a (the "Developer"), as of the date set forth below. RECITALS A. The City and the Developer have entered into that certain unrecorded agreement entitled "Disposition and Development Agreement" dated as of— . 2016 (the "DDA") concerning the conveyance and development of certain real property situated in the City of Anaheim California designated as the "Property": the Property is that real property described in that grant deed recorded among the official land records of the County of Orange ("Official Records") as Document No. Z� J-1 DOCSOC/170685 5v23/022363-0015 B. As referenced in Section 310 of the DDA. the City is required to furnish the Developer or its successors with a Release of Construction Covenants (as defined in Section 100 of the DDA) upon Completion of the Applicable Developer Improvements (as defined in Section 100 of the DDA). which Release is required to be in such form as to pen -nit it to be recorded in the Recorder's office of Orange Countv as to the area corresponding to the Applicable Developer Improvements (the "Project Site")- the Project Site is described in Attachment No. I hereto. This Release is conclusive determination of satisfactory Completion of the Applicable Developer improvements as described in Attachment No. 1 attached hereto and incorporated herein by reference. C. The City has conclusively determined that such construction and development of the Applicable Developer Improvements has been satisfactorily completed. NOW. THEREFORE, the City hereby certifies as follows: 1. The Applicable Developer improvements as to the Applicable Project Site to be constructed by the Developer in accordance with Sections 300-306 of the DDA and the Scope of Development have been fully and satisfactorily completed and is free of any claims and/or liens. The Applicable Project Site is hereby released from (i) the City's rights of access pursuant to Section 308 of the DDA: and (ii) the City's rights of re-entry and re -vesting pursuant to Section 503 of the DDA. Any operating requirements and all use. maintenance, security and/or nondiscrimination and other covenants contained in the DDA with respect to the Project Site and other documents executed and recorded pursuant to the DDA with respect to the Project Site shall remain in effect and enforceable according to their terms. In addition, all other provisions of the DDA which affect the Property other than the Project Site shall remain in full force and effect, provided, however. no Transferee (as defined in the DDA) shall have any liability for any breach of or default by any other owner under the DDA which occurs either prior to the date on which such Transferee took title to Applicable Project Site or following the date on which such Transferee transfers or relinquishes its title thereto. 2. Nothina contained in this instrument shall modify_ in any other way_ any other provisions of the DDA. J-2 DOCSOC/1706855v23/022363 0015 IN WITNESS WHEREOF, the City has executed this Release this day of .20 CITY: CITY OF ANAHEIM, a California municipal corporation and charter city Dated: .20 Bv: ATTEST: LINDA N. ANDAL, CITY CLERK City Clerk APPROVED AS TO FORM: MICHAEL HOUSTON, CITY ATTORNEY Theodore J. Reynolds Assistant City Attorney City Manager DEVELOPER: LAB HOLDING LLC, a California limited liability company Dated: .20 By: Its: J1 DOCSOC/1706855v23/022363-0015 ATTACHMENT NO. I DESCRIPTION OF THE PROJECT SITE Attachment No. 1 to Exhibit J DOCSOC/1706855v23/022363-0015 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 personally appeared _ , before me. } ss. (Print Name of Notary Public) ,Notary Public, 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 ot Notary Public OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER ❑ Individual ❑ Corporate Officer Title(s) Partner(s) ❑ Limited Attorney -In -Fact Trustee(s) Guardian/Con servator Other: Signer is representing: Name OfPerson(s) Or Entity(ies) DOCSOC/ i 706855v23/022363-001 ❑ General DESCRIPTION OF ATTACHED DOCUMENT Title Or Type Of Document Number Of Pages Date Of Documents Signer(s) Other Than Named Above 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 personally appeared before me. i ss. (Print Name of Notary Public) , Notary Public, 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. 1 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 of Notary Public OPTIONAL Though the data below is not required by law. it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER ❑ Individual ❑ Corporate Officer Title(s) ❑ Partner(s) ❑ Limited ❑ General ❑ Attorney -In -Fact ❑ Trustee( s) ❑ Guardian/Conservator ❑ Other: Signer is representing: Name Of Person(s) Or Entity(ies) DOCSOC/1706855v23/022363-0015 DESCRIPTION OF ATTACHED DOCUMENT Title Or Type Of Document Number Of Pages Date Of Documents Signer(s) Other Than Named Above EXHIBIT K RIGHT OF ENTRE' AGREEMENT This RIGHT OF ENTRY AGREEMENT (the "AGREEMENT") is entered into 20_, by and between LAB HOLDING, LLC, a California limited liability company ("GRANTEE") and the CITY OF ANAHEIM, a California municipal corporation and charter city ("GRANTOR"). RECITALS A. GRANTOR, as "City," and GRANTEE, as "Developer." entered into that certain Disposition and Development Agreement dated . 2016 (the "DDA"), pursuant to which the GRANTOR agreed, subject to the fulfillment of the City's Conditions Precedent to convey the Property to the GRANTEE and GRANTEE agreed, subject to Developer's Conditions Precedent to accept Conveyance of the Property and construct the Applicable Developer Improvements thereon. All capitalized terms not defined herein shall have the meaning set forth in the DDA, unless the context dictates otherwise. B. GRANTOR is in the process of acquiring the Property. RIGHT OF ENTRY AGREEMENT I. Grant of Right of Entry. Subject to approval of the current property owner, the GRANTOR hereby grants the GRANTEE, its employees. consultants, contractors, subcontractors, agents, tenants, purchasers, and designees, permission to enter upon the Property ("Right of Entry") for the purpose of performing or causing to be performed environmental, soils. and/or topographical tests and surveys ("Investigation") and for the purpose of clearing, demolishing and rough grading ("Grading"). 2. Termination. This Agreement shall terminate upon the earlier to occur of (i) 20 (ii) the Closing or (iii) termination of the DDA, unless otherwise extended by mutual agreement of the parties. 3. Assumption of Risk. GRANTEE enters the Property and performs or causes to be performed the Investigation, at its own risk and subject to whatever hazards or conditions may exist on the Property. 4. Condition of Propem Upon Termination of DDA Prior to Conveyance. If the DDA and this Agreement are terminated prior to Conveyance (a) in the case of Investigation, GRANTEE shall restore the Property to the condition extant immediately prior to the entry by Developer hereunder which shall include the repair or replacement of any landscaping, structures, fences, driveways, or other improvements that are removed, damaged, or destroyed by Grantee's employees, contractors, subcontractors, agents and designees, and (b) in the case of Grading of the Property, the Developer shall provide a rough graded level site. 5. Indemnification and hold harmless. GRANTEE shall indemnif},, defend and hold harmless the GRANTOR and City, its officers, directors, employees, contractors, subcontractors, agents, and volunteers ("Indemnitees") from any and all claims. suits or actions of every name, kind and description.. brought forth on account of injuries to or the death of any person or damage to property arising from or connected with the willful misconduct, negligent acts, errors or omissions, ultra -hazardous activities, activities giving rise to strict liability, or defects in design by the GRANTEE or any person directly or indirectly employed by or acting as agent for GRANTEE in the performance of this Right of Entry, except that such indemnity shall not apply to the extent such matters are caused by the gross negligence or willful misconduct of the GRANTOR_ its officers, agents, employees or volunteers. It is understood that the duty of GRANTEE to indemnify and hold harmless includes the duty to defend as set forth in Section 2778 of the California Civil Code. K-1 DOCSOC/1706855v23/022363-001; Acceptance of insurance certificates and endorsements required under this Right of Entry does not relieve GRANTEE from liability under this indemnification and hold harmless clause. This indemnification and hold harmless clause shall apply whether or not such insurance policies shall have been determined to be applicable to any of such damages or claims for damages. 6. Insurance. During the term of this Right of Entry, GRANTEE and its contractors. subcontractors and agents shall fully comply with the terms of the law of the State of California concerning worker's compensation and shall provide insurance in accordance with the DDA. Recording. Neither GRANTOR nor GRANTEE shall record this Right of Entry. S. Attornev's Fees. If any legal action or proceeding arising out of or relating to this Right of Entry is brought by either party to this Right of Entry, the prevailing party shall be entitled to receive from the other party, in addition to any other relief that may be granted. the reasonable attorneys' fees, costs. and expenses incurred in the action or proceeding by the prevailing party. sent to: 10. Notices. All notices required or permitted under the terms of this DDA shall be in writing and To Grantor: Citv of Anaheim 200 South Anaheim Boulevard, Second Floor Anaheim. California 92805 Attention: Attention: City Manager with a copy to: Stradling. Yocca, Carlson & Rauth 660 Newport Center Drive, Suite 1600 Newport Beach, California 92660 Attention: Thomas P. Clark. Jr. To Grantee: Lab Holding. LLC 709 Randolph Avenue Costa Mesa, California 92626 Attention: Shaheen Sadeghi with a copy to: Allen Matkins Leck Gamble Mallory & Natsis LLP 1900 Main Street, 5th Floor Irvine, California 92614 Attention: R. Michael Joyce 11. Time is of the Essence: Entire Agreement. Time is of the essence of the terms and provisions of this Right of Entry. This Right of Entry constitutes the entire agreement between GRANTEE and GRANTOR with respect to the matters contained herein, and no alteration, amendment or any part thereof shall be affective unless in writing signed by parties sought to be charged or bound thereby. K-2 DOCSOC/1706855v23/022363-001 12. Assignment. This Agreement shall be assignable as security to Grantee's Holder for the purposes and with the limitations set forth herein. APPROVED BY: "GRANTEE" LAB HOLDING LLC, a California limited liability company Dated: 20 By: Its: "GRANTOR'' CITY OF ANAHEIM, a California municipal corporation and charter city Dated: 20 By: Its: K-3 DOCSOC/I 706855N23/022363-0015 EXHIBIT L ASSIGNMENT OF CONTRACTS This Assignment of Contracts (the "Assignment") is made and entered into as of this day of 2016 ("Assignment Date"), by and between. THE CITY OF ANAHEIM, a California municipal corporation and charter city ("Assignor'), and LAB HOLDING LLC, a California limited liability company ("Assignee"), with reference to the following facts. RECITALS: A. Assignor and Assignee are parties to that certain Disposition and Development Agreement, made and entered into as of . 2016 (the "DDA"), pursuant to which Assignor agreed to sell to Assignee. and Assignee agreed to purchase from Assignor the Property. Capitalized terms used herein and not separate defined have the meanings ascribed to them in the DDA. B. Assignee has acquired fee title to the Real Property from Assignor on the Assignment Date. Assignor now desires to assign and transfer to Assignee all of Assignor's rights and interests in and to all warranties and guarantees provided to Assignor by vendors and/or contractors with respect to the real and personal property described in Attachment No. 1 hereto (collective]y. the "Contracts'). NOW. THEREFORE, for valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties hereto agree as follows: 1. Assignment and Assumption. Effective as of the Assignment Date, Assignor hereby grants, transfers, conveys, assigns and delegates to Assignee all of its rights and interests of Assignor in, to and under the Contracts that are set forth in Attachment No. I attached hereto and made a part hereof, provided. however. such assignment, transfer and sale shall not include any rights or claims arising prior to the Assignment Date which Assignor may have against any party to the Contracts. 2. No Warranties. Assignor is transferring each of the Contracts to Assignee (to the extent the terms of an), of the Contracts do not limit or restrict such right) without any warranty of any kind or nature. This Assignment shall not be construed as a representation or warranty by Assignor as to the transferability or enforceability of the Contracts, and Assignor shall have no liability to Assignee in the event that any or all of the Contracts (a) are not transferable to Assignee or (b) are canceled or terminated by reason of this Assignment or any acts of Assignee. Notwithstanding any provisions of this Assignment to contrary effect. Assignor is released and exonerated from anv duties, liabilities or obligations with respect to the Contracts which arose prior to the transfer of such Contracts. 3. Dispute Costs. In the event of any dispute between Assignor and Assignee arising out of the obligations of the parties under this Assignment or concerning the meaning or interpretation of any provision contained herein (but not with respect to any disputes under the contract assigned hereunder), the losing party shall pay the prevailing party's costs and expenses of such dispute. including, without limitation, reasonable attorneys' fees and costs. Anv such attorneys' fees and other expenses incurred by either party in enforcing a judgment in its favor under this Assignment shall be recoverable separately from and in addition to any other amount included in such judgment, and such attorneys' fees obligation is intended to be severable from the other provisions of this Assignment and to survive and not be merged into any such judgment. 4. Counterparts. This Assignment may be executed in counterparts, each of which shall be deemed an original, and all of which shall, taken together, be deemed one document. 5. Survival. This Assignment and the provisions hereof shall inure to the benefit of and be binding upon the parties to this Assignment and their respective successors, heirs and permitted assigns. L-1 DOCSOC/1706855v23/022363-0015 6. No Third Partv Beneficiaries. Except as otherwise expressly set forth herein. Assignor and Assignee do not intend, and this Assignment shall not be construed, to create a third -party beneficiary status or interest in. nor give any third -party beneficiary rights or remedies to. any other person or entity not a party to this Assignment. 7. Governing Law. This Assignment shall bt, governed by. interpreted under. and construed and enforceable in accordance with. the laws of the State of California. [SIGNATURE PAGES TO FOLLOW] L-2 DOCSOC/1706855v23/02236-' -00 15 IIT WITNESS WHEREOF. the parties hereto have executed this Assignment as of the Assignment Date. ASSIGNOR: CITY OF ANAHEIM, a California municipal corporation and charter city Dated: 2016 By: ATTEST: LINDA N. ANDAL, CITY CLERK City Clerk APPROVED AS TO FORM: MICHAEL HOUSTON, CITY ATTORNEY Theodore J. Reynolds Assistant Citv Attorney City Manager ASSIGNEE: LAB HOLDING LLC. a California limited liability company Dated: .20 By Its: L-3 DOCSOC/I706855v23/022363-0015DOCSOC/I 706855v23/022363-0015 ATTACHMENT NO. 1 LIST OF CONTRACTS LIST OF CONTRACTS ANI) WARRANTIES WARRANTY BINDERS Binder Label Contents Company Date Packard Building Warranties Packard Building Additions and Operations and Landscaping Maintenance Manuals Farmers Park Warranties Farmers Park Warranties Tovev/Schultz Construction. Inc. 9/6/2011 Tovey/ Schultz Construction, Inc. 6/5/2012 Tovev/Shultz Construction, Inc. 4/24/13 Synthetic Grass Warehouse, Inc. 11/6/15 Citrus Packing House Rehabilitation Project Warranties Tovey/Shultz Construction. Inc. 9/26/2012 Citrus Packing House Level 2 HVAC Warranties Tovey/Shultz Construction, Inc. 9/26/2012 The Anaheim Packing House Level II - Landscape Improvements Close Out Documents Questar Construction 4/1/2013 Service Agreements Service Description Company Date Common Area main Countv Heating & Air HVAC units: RTU: 1-5 Conditioning 6/1/2015 Grease removal from Western Professional Restaurant Grease Traps traps Services 5/28/2014 Fire alarm system Fire Alarm monitoring Vector Security 3/27,/2014 SP Plus Security (Universal Security Daily security services Protection) 6/1/2014 Elevator mechanical Elevator services Schindler Elevator Corporation 7/9/2012 Attachment No. 1-1 to Exibit L DOCSOC/1706855v23/022361-0015 EXHIBIT M ASSIGNMENT AND ASSUMPTION OF LEASES This ASSIGNMENT AND ASSUMPTION OF LEASES (this "Agreement") is executed as of the day of 2016 ("Agreement Date"), by and between CITY OF ANAHEIM. a California municipal corporation and charter city ("Assignor"). and LAB HOLDING, LLC, a California limited liability company ("Assignee"). RECITALS: B. Assignor and Assignee are parties to that certain Disposition and Development Agreement. made and entered into as of 2016 (the "DDA"). pursuant to which Assignor agreed to sell to Assignee, and Assignee agreed to purchase from Assignor the Property. Capitalized terms used herein and not separately defined shall have the same definitions as set forth in the DDA. C. Assignee acquired fee title to the Property from Assignor on the Agreement Date. Assignor now desires to assign and transfer to Assignee all of Assignor's right, title. and interest in and to all the leases (the "Leases") set forth on Schedule "1" hereto. and Assignee desires to accept such assignment and to assume and perform all of Assignor's covenants and obligations in and under the Leases. NOW. THEREFORE, in consideration of the foregoing recitals and for other good and valuable consideration. the receipt and sufficiency of which are hereby acknowledged. Assignor and Assignee hereby agree as follows: 1. Assignment and Assumption. Assignor hereby assigns and transfers to Assignee all of Assi-nor's right. title and interest in and to the Leases set forth on Schedule "I" hereto from and after the Agreement Date. Assignee hereby accepts the above assignment and expressly assumes and covenants to keep. perform, fulfill and discharge all of the terms, covenants. conditions and obligations required to be kept, performed, fulfilled and discharged by Assignor under and with respect to the Leases set forth on Schedule "1 " hereto from and after the Agreement Date. In no event shall this Agreement be deemed to include, and Seller hereby reserves, all rights and claims against the Assignee based on acts. events or circumstances occurring prior to the Agreement Date. 2. Dispute Costs. In the event of any dispute between Assignor and Assignee arising out of the obligations of the parties under this Agreement or concerning the meaning or interpretation of any provision contained herein. the losing party shall pay the prevailing party's costs and expenses of such dispute. including. without limitation. reasonable attorneys' fees and costs. Any such attorneys' fees and other expenses incurred by either party in enforcing a judgment in its favor under this Agreement shall be recoverable separately from and in addition to any other amount included in such judgment. and such attorneys' fees obligation is intended to be severable from the other provisions of this Agreement and to survive and not be merged into any such judgment. M-1 DOCSOC/1706855v23/022363-001 I . Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original. and all of which shall. taken together. be deemed one document. 4. Survival. This Agreement and the provisions hereof shall inure to the benefit of and be binding upon the parties to this Agreement and their respective successors. heirs and permitted assigns. 5. No Third Partv Beneficiaries. Except as otherwise expressly set forth herein. Assignor and Assignee do not intend, and this Agreement shall not be construed, to create a third -party beneficiary status or interest in, nor give any third -party beneficiary rights or remedies to. any other person or entity not a party to this Agreement. 6. Governing La". This Agreement shall be governed by, interpreted under. and construed and enforceable in accordance with. the laws of the State of California. [SIGNATURE PAGES TO FOLLOW] M-? DOCSOC/1706855v23/022363-001 IN WITNESS WHEREOF, Assignor and Assignee have duly executed this Agreement as of the day and year first above written. ASSIGNOR: CITY OF ANAHEIM. a California municipal corporation and charter city Dated: .2016 By: City Manager ATTEST: LINDA N. ANDAL, CITY CLERK City Clerk APPROVED AS TO FORM: MICHAEL HOUSTON, CITY ATTORNEY Theodore J. Reynolds Assistant City Attorney [SIGNATURES CONTINUE ON FOLLOWING PAGE] M-3 DOCSOC/1706855�23/02236'-001 ASSIGNEE: LAB FOLDING LLC. a California limited liability company Dated: .20 By: Its: M-4 DOCSOC/1706855v23/02236 3-001 SCHEDULE 1 LEASES No. Pnntr Patio A reement 1st 3rd Memorandum of Lease Name Business Nmne Space No. '2nd Amendment Other Agreements Afiremnent gDzte No.y No. Amendment Amendment Lease Packing House 1 Amara Resf argot, LLC Adya 201 5 201 Lease March 5, 2013 to Lease (June 20, 2014) X Anaheim Plardware & Hardwork, _ to Lease with 2 LLC (assigned by LAB H.Idinp- the Ilannner 215 14 WA Lease June 13, 2013 Assignment X LLC (June 18, 2014) 3 Annie Living, LLC Poppar 211 7 N/A Lease January 24, 2013 to Lease (June 20, 20t4) _ X Barbara and Maurizio Cocchi dhn _ _ 4 Vital y Piadins and Cucina Vilely 107-A ? NfA lease itiay R, 2015 sOctober Buy N Bulk Laguna Coll' Buy N Bulk IOR 16 N/A Lease 3, 2013 to Lease (Sone 23, 2014) X 6 BXCR, LLC BXCR III NIA WA Lease A rit 8, 2015 _ 7 Cafecito Organicq LLC Cafecito Orgavco 210 N/A NIA _ Lease February 27, to Lease to Lease to Lease X 2012 (August 9, 2012) (June 23, 2014) S The Chippy Group LLC nlix it un Soup'N 207 22 WA Lease August 27,2015 Salad I. Lease I. April 26, to Amended and Release oFMemarandon, o(' 2 Amended and 2012 Restated Lease to `. ease A. Lease dated 9 The ('hippy Paitn<s.�s, LLC the ('hippy 204 N/A N/A Restated 2_ February IQ (.August 22, If 16, 2014) January 1, 201? A reams emutt 21713 2013 _ (recorded March 9, 2015) to lease with W Cook's Chapel (assiaued by LAB Conk's Chapel 112 and N/A N/A Le- February 20, Assignment to Lease Holding. LLC) 113 2014 (August 25, (April 8, 2015) 2014) _ to Lease I I Fcco Pizza Slhoppe, LLC Cee. Piz. 209-D 18 2096 Lease June 13, 2013 (October 21, X 20t4) 12 George R Gretchen, Inc. fi eorgins 209-A 2{1 209A Lease r Decembe19, 2013 to (June 16, 2014) Least 13 Grndns (Ibnnally ('-West St)le) Ormrge Tei ^202 and 203 E 202 and 203 Lease February 4, 2013 to lease (Juga 16, 2014 - X 14 Ltaoji, LLC Crepe Coop )05 _ 8 N/A Lease January 15, _ to pease X 2014 (July 15, 2014) I5 Hans Elameaade, LLC Hans Hans Homemade 208 19 N/A _ Lease September 4, to Lease X Cream 2013 (June 20 2014) 16 iloaste Investment Group, i.LC the Kroft 109 2 N/A Lease May 22, 2013 to Lease (June 20 2014) Y to Lease with C(1PA Restmnant Group, 17 Jav-i" Ctmdra tlrba°a 101,101 N/A N/A Lease May 29, 21) ]4 Assignment and ITC Cm poste Resolution t 1 4 Assumption of (!'ending) Lease (Pendia � 18 1 I hrvestments, LLC Kettle Bar 1)67-Band1 106 Lease August 27, to Lease X 2013 (June 18, 2014) Junk .Juice, LLC January 27, to Lease to Lease with Assumption of Release of Leasehold interest 14 (assumed front limon Drop Lemon Drop 206 15 N/A Lease 2014 (June 2(1, 2014) Lease X dated Juices, LLC (April 28, 2015) January 24, 2014 20 Kevin Noswonhy and Alma Dark IRO K -I 17 N/A Lease February 5, to Lease to Lease (Augnat 28, X Ayvazimn 4. 2014 (June I6, 2014) - 21 - Pa tura a1 Anaheim, LL( Blind- -103 and I I and N`A Cease, and March )5, 2013 to Lease X (2 wodors) Rabbit/Ro7[ing Boit 104 12 Guaranty of Lease (June 25, 2014 22 Partners at Anaheim, LLC Iran Press 205 1 9 and 10 1 205 I Lease, and March l8, 2013 to Lease v X Schedule I to Exhibit M Page I of 2 00( 'SO(71 706855v23/022363-00 15 No. Lease Name Business Name Space No. Pantry Patio Agreement Agreement Is[ 2nd Amendment 3rd blentorandum of 011ter ,Agreements No. No, Dale Amendment Amendment Lease G,aranty of Lease (June 24, 2014) 23 RR Bakery. Inc Pander Bakery 214 N/A 214 Lease November 12, x 2014 29 San Clemente Cellar, Ltc, Black Sheep21 3 l i N/A Lcase Nn 21, 21113 o Lease X y (June 24, 2014) 25 Sawleaf, Inc Ifixnmlly R P grow SawlcaF U,176 110 4 N/A Lease, curd December I9, to Lease (October 27, X Restmumus) Guaranty of Lease 2013 2014) ____ _ _ Packard Building 26 ABR Brewery and Restaurant, Inc. Anaheim Brewery Retail Lease October 1, X 201 0 27 Umami Burger, LLC Umami Burger Lease July 1, 201 I X h1AKG (500 S. Anaheim Blvd.) September I8, 28 Lab Holding , LLC NIAK6 Lease 2014 Schedule l to Exhibit M Page 2 of 2 U(_)C'SOG17068555°23/022363-0015 EXHIBIT N MEMORANDUM OF AGREEMENT RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO AND SEND TAX STATEMENTS TO: City of Anaheim 200 South Anaheim Boulevard, Second Floor Anaheim, California 92805 Attention: City Manager This document is exempt from the payment of a recording fee pursuant to Government Code Section 27383. [uTiiluIi7:7:�i;ITiJu Cil 0I_�t�7�filu l il`►fl l This MEMORANDUM OF AGREEMENT (the "Agreement') is entered into as of 20 by and between the CITY OF ANAHEIM, a California municipal corporation and charter city (the "City"), and LAB HOLDING, LLC, a California limited liability company (hereinafter referred to as "Developer"). RECITALS 1. Recordation of Memorandum of Agreement. This Memorandum of Agreement evidences that certain unrecorded Disposition and Development Agreement between the City and the Developer dated ,20 ("DDA''), a copy of which is on file with the City as a public record. Capitalized terms not defined herein shall have the meaning set forth in the DDA. When recorded at the Closing the DDA is a burden against Developer's fee simple interest in the Property which Property is more particularly described in Attachment No. l attached hereto and incorporated herein by reference. The DDA provides, among other things, and subject to the fulfillment of certain Condition Precedent, for a conveyance of the Property to the Developer and for the development and operation by Developer thereon of Developer Improvements. The Covenants shall run with the land and be binding upon the heirs, successors and assigns of Developer. Among the covenants that survive the conveyance of the Property to Developer are the "Surviving Covenants"; "Surviving Covenants" means the covenants, obligations and promises of Developer hereunder, including without limitation the covenants, obligations and promises set forth in Section 103, 103.2, 103.3, 103.4, 204. 204.3. 204.4, 304 through 309, inclusive. 311.4, 312, 400. 401, 503, 603, 6041, and 624 of the DDA. The Surviving Covenants shall survive the Closing, run with the land and be binding upon heirs, successors and assigns of Developer. The Covenants contained in Sections 103. 401 of the DDA. and the Declaration shall remain in effect in accordance with their respective terms. The Covenants contained in Sections 204.3. 204.4, 307, 309. 401.1. 402. 403, and 603 of the DDA shall remain in effect in perpetuity. N-1 DOCSOC/1706855v23/022363-0015 IN WITNESS WHEREOF, the undersigned have executed this Memorandum of Agreement as of the day of .20—. CITY: CITY OF ANAHEIM, a California municipal corporation and charter city Dated: 20 Bv: ATTEST: LINDA N. ANDAL, CITY CLERK City Clerk APPROVED AS TO FORM: MICHAEL HOUSTON, CITY ATTORNEY Theodore J. Reynolds Assistant City Attorney City Manager DEVELOPER: LAB HOLDING LLC. a California limited liability company Dated: .20 By: Its: N-2 DOCSOC/1706855r23/022363-0015 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 personally appeared _ , before me. l ss. (Print Name of Notary Public) , Notary Public, 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. ienature of Notary Public OPTIONAL Though the data below is not required by !am-. it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER ❑ Individual ❑ Corporate Officer I� ■ Title(s) Partner(s) ❑ Limited Attornev-In-Fact Trustee(s) Guardian/Conservator Other: Signer is representing: Name Of Person(s)6r Entity(ies) DOCSOC/1706855v25/02236x-0015 ❑ General DESCRIPTION OF ATTACHED DOCUMENT Title Or Type Of Document Number Of Paees Date Of Documents s) Other Than Named Above 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 personally appeared _ , before me, i I ss. (Print Name of Notary Public) Notary Public. 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 of Notary Public OPTIONAL Though the data below is not required by law. it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED Bl' SIGNER ❑ Individual ❑ Corporate Officer ❑ Title(s) Partner(s) ❑ Limited Attorney -In -Fact Trustee(s) Guardian/Conservator Other: Signer is representing: Name OfPerson(s) Or Entity(ies) DOCSOC/1706855v23/022363-001 ❑ General DESCRIPTION OF ATTACHED DOCUMENT Title Or Type Of Document Number Of Pages Date Of Documents s) Other Than Named .Above EXHIBIT 0 BILL OF SALE FOR GOOD AND VALUABLE CONSIDERATION, the receipt and sufficiency of which is hereby acknowledged, THE CITY OF ANAHEIM, a California municipal corporation and charter city, ("Seller"), does hereby give, grant, bargain, sell, transfer and deliver unto LAB HOLDING Ll_:C. a California limited liability company ("Buyer"), pursuant to that certain Disposition and Development Agreement dated 2016 (as amended, the "Agreement"), all of Seller's right, title and interest in and to that certain personal property listed on the attached Schedule "I" (the "Personal Property") owned by Seller and located on and used in connection with the ownership and/or operation of the real property more particularly described on Schedule "2" attached hereto ("Real Property"), which Real Property is being conveyed to Buyer on or about of even date herewith. The Personal Property is hereby acquired by Buyer "AS -IS" without any representation or warranty of any kind or nature of Seller, express, implied or statutory, as to the nature of or title to the Personal Property or its fitness for Buyer's intended use of same. EXECUTED as of , 2016. SELLER: CITY OF ANAHEIM, a Calilornia municipal corporation and charter city By: City Manner ATTEST: LINDA N. ANDAL, CITY CLERK City Clerk, APPROVED AS TO FORM: MICHAEL HOUSTON, CITY ATTORNEY Theodore J. Reynolds Assistant City Attorney [SIGNATURES CONTINUE ON FOLLOWING PAGE] 0-1 DOCSOC/1706855v23/022363-001-4; 1:3�ti�Iil LAB HOLDING LLC, a California limited liability company INo Its: Schedule 0-2 DOCSOC/1706855v23/022363-0015 SCHEDULE 1 SCHEDULE OF PERSONAL PROPERTY Count Item/Furniture 2 Office chairs 2 Global Industrial stools 2 Global Industrial stools 4 Galvanized tubs 2 Ballard Design -Umbrella 4 Ballard Design -Umbrella Stand 10 Black Oak Library Chairs 4 White Oak Picnic Table/Bench Set 35 Stools for rim of atrium 8 Planters for Railyard & Front Deck 2 Low Armchairs (outdoors) 7 Rocking chairs (outdoors) 5 Side Stacking Chairs (outdoors) 4 Haywood Wakefield Vintage Theater Seat 4 Barstools 4 Common Tables 8 Benches for Common Tables 4 Train Station Benches 7 Sisal Net Pendant Lamps (stage area) 1 Industry Serving Table (entrance) 4 Renata Dining Chairs 11 Cast Iron Table Bases 7 Cafe Table Tops 4 Studio Floor Lamps 2 Libby Desk Lamps 6 Nash Chairs 4 Aluminum Stools 35 Hudson Chair -Steel Frame 2 Leesburg Bench with Back 7 Redwood restaurant Tables 2 Redwood Bar Height Tables 2 Steamer Basket 8 Wire shelf -black epoxy coated finish 35 Food Trays 2 Glass Vase on wood pedestal 4 Glass round vase on wooden base 2 Wood and glass showcase 5 Hand -Woven Bee Skeps 4 Wooden Bench in Natural 2 Garden Bistro Table 4 Garden Bistro Chair 2 Bistro Table 1 Abdul Side Table -gold Schedule 1-1 to Exhibit O DOCSOC/1706855v23/022363-0015 Count Item/Furniture 4 2 2 2 2 4 2 4 4 2 3 2 1 2 2 1 2 4 1 1 2 1 2 1 2 1 1 2 2 8 4 4 3 2 2 2 4 6 4 1 1 Rectangular Tin Tray w! Stand Rectangular Wooden Table Rectangular Wooden Bench Rectangular Rattan Chair Rectangular Rattan Bench Square Rattan Stool Set of 2 Rectangular Rattan Storage w/wheels Round Metal Stool Yalria Cafe Chair Redwood Picnic Tables w/ benches attached Wood Double Icebox w/ butcher -block Glass Round vase on wooden base Salvaae Metal Drum Stool W/Wood Seat Darby Metal Stool Willow Gathered Baskets Harpoon Wood and Iron Stool Stilt High Dining Table Main Round Baskets Seagrass Cube Sandblasted Marble Cafe Table Antwerp Dining Table Antwerp Bench Gaviota Hemp Pouf Natural Kent Iron Chair Rialto Square Table Silver Jute Moghul Chair Silver Jute Moghul Table Old Iron Folding Chair Old Iron Folding Table Big Sur Table Nest Chair Ingrid Rattan Dining Chair Fulton Chair Theo Chair Jute Hanging Planter Large Jute Hanging Planter Small Pecos Planters Large Wine Trough Primitive Jumbo Bowl Primitive Vase Cachepot Medium Primitive Cachepot Medium Leather School Chair Welder's Table Round Public School Chairs Custom Sofa (72", olive wool, antique copper finish) Inheritance Collection Armchair w/antique finish Flooring Furnish Isfahan carpet in one room 8.8 sq. yards Schedule 1-2 to Exhibit O DOCSOC/1706855v23/022363-0015 Count Item/Furniture 6 Black round tables 4 Propane heaters 15 Cushions 2 Sack Bench 2 Meridian Accent Table (Green) 2 Meridian Accent Table (White 6 Cocktail tables w/smudge pot 2 Coffee Table 2 Marais Dining Table Stools 21 Open Weave Burlap Drapery 6 Dakota Mocha Rope Tieback 4 Redwood Planters w/metal trays 2 Porch Swings 2 White Oak Couches 2 Open Weave Sheer Linen Drapery 2 Open Weave Bulap Drapery 1 Oriental carpet under oak couches 2 Leather Couches 2 Desks 1 Security Svstem and Cameras 1 Audiovisual (AN) System 2 Communitv tables with paper rolls 1 Industrial metal table I Birdhouse table 21 Park chairs 4 Redwood low tables with metal bases 4 Fiberglass Roosters I Copper Dial Thermometer 10 Outdoor Wood and Metal Rocker 1 Outdoor Ping Pon- Table 1 Baker's Rack/2 Wire Shelf 1 Large Table 6 Outdoor Coffee Table 2 Day Tables 2 Picnic Tables with Benches Misc. Office Equipment Misc. Janitorial Equipment 1 Oak desk - 5wide a 34" deep a 31" high 1 Oak desk - 5' wide a 32" deep a 31" high 1 Table w/ black tabletop - 10' 1" long x 38" wide a 31.1" high 1 boa Miscellaneous silver metal letters 2 Rail car shades Schedule 1-3 to Exhibit O DOCSOC/1706855N 23/022363-001 SCHEDULE 2 LEGAL DESCRIPTION OF PROPERTY PROJECT #l: PACKING DISTRICT PACKING HOUSE The real property referred to herein is situated in the County of Orange. City of Anaheim. State of California. and is described as follows: PARCEL 3 OF PARCEL MAP NO. 2011-116 RECORDED JUNE 3.2014 AS INSTRUMENT NO. 201400215209 IN BOOK 379. PAGES 15-20 OF PARCEL MAPS IN OFFICIAL RECORDS OF SAID COUNTY. FARMERS PARK AND PACKARD BUILDING The real property referred to herein is situated in the County of Orange. City of Anaheim. State of California, and is described as follows: PARCELS I AND 2 OF PARCEL MAP NO. 2011-116 RECORDED JUNE 3, 2014 AS INSTRUMENT NO. 201400215209 IN BOOK 379. PAGES 15-20 OF PARCEL MAPS IN OFFICIAL RECORDS OF SAID COUNTY. MAKE BUILDING (500 S. ANAHEIM BOULEVARD) The real property referred to herein is situated in the County of Orange. City of Anaheim. State of California, and is described as follows: PARCEL 3 OF PARCEL MAP NO. 89-311, IN THE CITY OF ANAHEIM. COUNTY OF ORANGE, STATE OF CALIFORNIA. AS PER MAP FILED IN BOOK 260. PAGES 1 TO 4 INCLUSIVE OF PARCEL MAPS. IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPTING THEREFROM THAT PORTION CONVEYED TO THE CITY OF ANAHEIM IN GRANT DEED RECORDED MAY 02. 2006 AS INSTRUMENT NO. 2006000294061, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. ALSO EXCEPTING THEREFROM ALL OIL, MINERAL. GAS OR OTHER HYDROCARBON SUBSTANCES BELOW THE DEPTH OF 500 FEET, UNDER THE SURFACE OF SAID LAND, BUT WITHOUT THE RIGHT OF SURFACE ENTRY OR ANY OTHER USE OF THE LAND ABOVE SUCH 500 FOOT DEPTH, AS RESERVED IN DEED RECORDED MAY 05. 1989. AS INSTRUMENT NO. 89-238472 OF OFFICIAL RECORDS Schedule 2 to Exhibit O DOCSOC/I 706855v23/022363-0015 M.11-0-113YA I DESIGN REVIEW PROCESS Conceptual Site Plans and Basic Concent Drawings. Concurrently herewith Developer has submitted and the City has approved Conceptual Site Plans and Basic Site Plans for the Developer Improvements, which Conceptual Site Plans and Basic Site Plans are attached hereto as Exhibit G. 2. Design Development Drawings. After the City's approval or conditional approval of the Basic Concept Drawings, and within the time set forth in the Schedule of Performance, the Developer shall submit to the City the following plans and drawings with respect to the Developer Improvements (the "Design Development Drawings"), which must include the following: (a) A fully dimensioned Site Plan which complies with the Citys site plan submittal process for review by the City Planning Commission, which includes a landscape plan, with hardscape plans, sections and elevations, including lighting, equipment,, lumishings and planting schedules. (b) Materials and color board. (c) Floor plans. (d) Roof plans. (e) Elevations and project sections. (f) Tabulation of areas/uses. (g) Elevations of major public spaces. (h) A traffic and circulation plan as applicable or as many be required by the City's Traffic Engineer. (i) A rendered perspective. 0) Graphics and signage plans. (k) Lighting schedules with samples or manufacturer's literature for exterior lighting and lighting on building exteriors. Lighting locations are to be shown on landscape plans and elevations. (1) Preliminary landscape plans. (in) Communal spaces. (n) Pedestrian and Vehicular Access. P-1 DOCSOC/1706855\,23/022363-0015 (o) Parking. (p) Trash/Trash enclosures. 3. Construction Drawings and Related Documents. After the City's approval of the Design Development Drawings and within the time set forth therefor in the Schedule of Performance. the Developer shall prepare or cause to be prepared and submit to the City Manager detailed construction plans with respect to the Developer Improvements, including without limitation a grading plan. which shall have been prepared by a registered civil engineer (the "Construction Drawings"). 4. Standards for Disapproval. The Cite shall have the right to disapprove the Basic Concept Drawings in its sole discretion. The City shall have the right to disapprove in its reasonable discretion any of the Design Development Drawings if (a) the Design Development Drawings do not substantially reflect a logical iteration of the Basic Concept Drawings. or (b) the Design Development Drawings do not conform to the Agreement to which the Exhibit P is attached in any material way. or (c) the Design Development Drawings are incomplete in any material way. The City Manager shall have the right to disapprove in his reasonable discretion anv of the Construction Drawings if (a) the Construction Drawings do not substantially reflect a logical iteration of the Design Development Drawings in any way, or (b) the Construction Drawings do not substantially conform to the Scope of Development or the Agreement to which the Exhibit P is attached in any way, or (c) the Construction Drawings are incomplete in any way. The City's notice shall state in writing the specific reasons for disapproval and when such disapproval is given, and any disapproval must be in writing and given within thirty (30) days after request for approval is given by Developer. The Developer, upon receipt of any such a disapproval. shall revise such portions and resubmit the disapproved Basic Concept Drawings.. Design Development Drawings, or Construction Drawinas, as the case may be, disapproved thereby_ by the time established therefor in the Schedule of Performance. The Developer acknowledges and agrees in addition to the City land use regulaton7 authority that City is entitled to approve or disapprove the Basic Concept Drawings. Design Development Drawings and Construction Drawings in order to satisfy the City's obligation to promote the sound development and redevelopment of land within the Project, to promote a high level of design which will impact the surrounding development, and to provide an environment for the social, economic and psychological growth and well-being of the citizens of the City and the Project. 5. Consultation and Coordination. During the preparation of the Design Development Drawings and Construction Drawings. staff of the City and the Developer shall hold joint progress meetings with Cite staff to coordinate the preparation of, submission to. and review of the Basic Concept Drawings, Design Development Drawings and Construction Drawings by the City Manager and the City. The staff of the City and the Developer shall communicate and consult informally as frequently as is necessary to ensure that the formal submittal of anv documents to the City can receive prompt and thorough consideration. 6. Revisions. If the Developer desires to propose any substantial exterior revisions to the approved Basic Concept Drawings or Design Development Drawings. it shall submit such proposed changes to the City Manager, and shall also proceed in accordance with any and all P-2 DOCSOC/1706855v23/022363-0015 state and local laws and regulations regarding such revisions, within the time frame set forth in the Schedule of Performance for the submittal of the Design Development Drawings. City shall expedite any response as necessary to avoid delay. subject to statutory notice requirements. Any change proposed in the approved Basic Concept Drawings may be disapproved by the City in its sole and absolute discretion. Any and all change orders or revisions required by the City and its inspectors which are required under the Municipal Code and all other applicable Uniform Codes (e.g. Building, Plumbing, Fire,, Electrical, etc.) and under other applicable laws and regulations shall be included by the Developer in its Basic Concept Drawings, the Design Development Drawings, or the Construction Drawings and completed during the construction of the Developer Improvements: City shall approve any and all such required changes. P-3 DOCSOC/ 170685 5N,23/022363-0015 EXHIBIT Q HISTORIC COVENANTS RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: Citv of Anaheim 201 South Anaheim Boulevard. 10th Floor Anaheim, California 92805 Attention: Community Development Director This document is exempt from the payment of a recording fee pursuant to Government Code Sections 6103 and 27383. HISTORIC COVENANTS These HISTORIC COVENANTS ("Historic Covenants") are entered into as of 20_, by and between the CITY OF ANAHEIM, a California municipal corporation and charter city ("City"), and LAB HOLDING, LLC, a California limited liability company ("Developer"), with reference to the following: A. City and Developer have executed a Disposition and Development Agreement. dated as of , 2016 ("Agreement"), which provides for the sale by the City to the Developer, and the development and operation by the Developer, of certain real property located in the City (the "Property"). The Agreement is available for public inspection and copying at the office of City Clerk, 200 South Anaheim Boulevard, Second Floor, Anaheim, California. Capitalized terms used herein and not otherwise defined shall have the same meaning as set forth in the Agreement. B. The Property includes three historically -significant buildings: The Packing House, the Burns House, the Packard Building and the MAKE Building (500 S. Anaheim Boulevard); the location of these buildings is shown on the Site Map set forth in Attachment No. 1, attached hereto and incorporated herein. The Packing House, the Burns House, the Packard Building and the MAKE Building are sometimes referred to collectively herein as the "Historic Properties." The Historic Properties are described in the legal descriptions set forth in Attachment No. 2, attached hereto and incorporated herein. C. The Agreement requires the Developer to execute these Historic Covenants to provide for the restoration, maintenance and preservation of the Historic Properties and to restrict the modification. renovation, or other development or construction activity at or affecting the Historic Properties. These Historic Covenants are intended to encumber the Historic Properties and run with the land. D. The foregoing recitals constitute a substantive part of these Historic Covenants. NOW, THEREFORE. in exchange for good and valuable consideration, receipt of which is hereby acknowledged, Developer hereby conveys to City the following Historic Covenants and agrees and covenants as follows, for the benefit of the Cit-,,,: Q-1 DOCSOC/1706855v23/022363-001; 1. Historic Integrity. The Developer shall maintain and preserve, or cause to be maintained and preserved (and with respect to the Bums House, the Developer shall restore), the historic integrity of the Historic Properties, including without limitation maintenance of the Character Defining Features (defined below) of the applicable Historic Properties in a manner that meets and is consistent with the following standards: a. Packing House Standards. i. United States Secretary of the Interior's Standards for the Treatment of Historic Properties with Guidelines for Preserving, Rehabilitating. and Restoring Historic Buildings, ii. any and all standards promulgated by the Office of Historic Preservation of the California Department of Parks and Recreations., and 2010. iii. all applicable standards set forth in the State Historic Building Code; C� iv. The City's "Citywide Historic Preservation Plan" dated May 18, b. Packard Building Standards. i. United States Secretary of the Interior's Standards for the Treatment of Historic Properties with Guidelines for Preserving, Rehabilitating. and Restoring Historic Buildings; iL any and all standards promulgated by the Office of Historic Z!� Preservation of the California Department of Parks and Recreations; 2010. iii. all applicable standards set forth in the State Historic Building Code; iv. The City's "Citywide Historic Preservation Plan" dated Ma-,,, 18, C. Bums House Standards, i. United States Secretary of the Interior's Standards for the Treatment of Historic Properties with Guidelines for Preserving. Rehabilitating. and Restoring Historic Buildings, ii. any and all standards promulgated by the Office of Historic C� Preservation of the California Department of Parks and Recreations*. iii. all applicable standards set forth in the State Historic Building Code; and iv. The City's "Citywide Historic Preservation Plan" dated May 18, 2010. Q-2 DOCSOC/ 170685 5N,23/022363-0015 d. MAKE Building (500 S. Anaheim Boulevard) Standards. The City's "Citywide Historic Preservation Plan" dated May 18, 2010. e. As used in these Historic Covenants. "Character Defining Features" means and includes, without limitation, the general architectural form, style, material, design, scale. proportions, organizations of windows, doors and, other openings, details, mass, roof lines and all other aspects of the appearance of the exterior of the building, including but not limited to the historic appearance and integrity, texture and finish of the building. 2. Packing House; National Register of Historic Places. In addition to the foregoing, Developer shall ensure that the Packing House remains listed on the National Register of Historic Places maintained by the National Park Service pursuant to the National Historic Preservation Act of 1966, or any similar registry or list that may replace the National Register of Historic Places. 3. Citi- Review of Plans and Materials. In the event the Developer determines to I rehabilitate. renovate oi- otherwise modify the Historic Properties in any manner, the City shall have the right to review and approve (or disapprove) all plans and materials for such proposed rehabilitation, renovation or modification for the purpose of confirming compliance with these Historic Covenants. 4. Failure to Maintain Historic Integrit- y of Historic Properties. In the event Developer does not maintain the Historic Properties in the manner set forth herein, City shall have the right to maintain, restore and/or preserve the Historic Properties, or to contract for the correction of such deficiencies, after written notice to Developer. However, prior to taking any such action, City agrees to notify Developer in writing if the condition of the Historic Properties does not conform to these Historic Covenants and to specify the deficiencies and the actions required to be taken by Developer to cure the deficiencies. Upon notification of any deficiency under these Historic Covenants. Developer shall have thirty (30) days within which to correct, remedy or cure the deficiency. In the event Developer fails to correct. remedy, or cure or has not commenced correcting remedying o or curing such deficieriev under these Historic Covenants after notification and after the - - period of correction has lapsed, then City shall have the right to maintain, restore and/or preserve the Historic Properties in accordance with these Historic Covenants and the notice provided to Developer pursuant to the preceding g paragraph. Developer agrees to pay City such charges and costs. Until so Z-1 - paid. City shall have a lien on the Historic Properties for the amount of such charges or costs, which lien shall be perfected by the recordation of a "Notice of Claim of Lien" against the Historic Properties. Upon recordation of a Notice of a Claim of Lien against the Historic Properties, such lien shall constitute a lien on the fee estate in and to the Historic Properties prior and superior to all other monetary liens except: (1) all taxes, bonds, assessments, and other levies which, by law, would be superior thereto- (ii) the lien or charge of any mortgage, deed of trust, or other securivy interest then of record made in good faith and for value., it being understood that the priority of any such lien for costs incurred to comply with these Historic Covenants and the Agreement shall date from the date of the recordation of the Notice of Claim of Lien. Any such lien shall be subject and subordinate to any lease or sublease of the interest of Developer in the Historic Properties or any portion thereof and to any easement affecting the Historic Properties or any portion thereof entered into at any time (either before or after) the date of recordation of such a Notice of Claim of Lien. Any lien in favor of City created or claimed hereunder is expressly made subject and subordinate to any mortgage or deed of trust made in good faith and for value, recorded as of the date of the recordation of the Notice of Q-3 DOCSOC/1706855N123/022363 -0015 Claim of Lien describing such lien as aforesaid. and no such lien shall in any way defeat, invalidate. or impair the obligation or priority of any such mortgage or deed of trust, unless the mortgage or beneficiary thereunder expressly subordinates his interest. of record, to such lien. No lien in favor of City created or claimed hereunder shall in any way defeat, invalidate, or impair the obligation or priority of any lease, sublease or easement unless such instrument is expressly subordinated to such lien. Upon foreclosure of any mortgage or deed of. trust made in good faith and for value and recorded prior- to the recordation of any unsatisfied Notice of Claim of Lien, the foreclosure purchaser shall take title to the Historic Properties free of any lien imposed by City that has accrued up to the time of the foreclosure sale, and upon taking title to the Historic Properties, such foreclosure purchaser shall only be obligated to pay costs associated with these Historic Covenants and the Agreement accruing after the foreclosure purchaser acquires title to the Historic Properties. If the Historic Properties is ever legally divided with the written approval of City and fee title to various portions of the Historic Properties are held under separate ownerships, then on and after the ownership of the Historic Properties is divided, the burdens of the obligations in these Historic Covenants and the charges levied by Cit} to reimburse City for the cost of undertaking such maintenance obligations of Developer and its successors and the lien for such charges shall be separately levied against the specific portion of the Historic Property(ies) to which such obligations undertaken by the City relate. Upon such division of ownership, no separate owner- of a portion of the Historic Properties shall have any liability for the liabilities of any other separate owner of another portion of the Historic Properties. and the lien shall be similarly apportioned and shall only constitute a lien against the portion of the Historic Properties owned in fee by the owner who is liable for the apportioned charges levied by City and secured by the apportioned lien and against no other portion of the Historic Properties. Developer acknowledges and agrees City may also pursue any and all other remedies available in law or equity. Developer shall be liable for any and all attorneys' fees, and other legal costs or fees incurred in collecting said maintenance costs. Nothing set forth in these Historic Covenants shall be construed to permit Developer to convey or transfer the Property or any portion thereof except as permitted by the Agreement and the [Declaration of Uses]. 5. Compliance with Law. Developer shall comply with all local, state and federal laws including all Governmental Requirements and Environmental Laws (as those terms are defined in the Agreement) relating to the uses of or condition of the Historic Properties. Miscellaneous Provisions. a. If any provision of these Historic Covenants or portion thereof.. or the application to any person or circumstances, shall to any extent be held invalid, inoperative or unenforceable, the remainder of these Historic Covenants., or the application of such provision or portion thereof to any other persons or circumstances, shall not be affected thereby: it shall not be deemed that any such invalid provision affects the consideration for these Historic Covenants: and each provision of these Historic Covenants shall be valid and enforceable to the fullest extent permitted by law. b. These Historic Covenants shall be construed in accordance with the laws of the State of California. C. These Historic Covenants shall be binding upon and inure to the benefit of the successors and assigns of Developer. Q-4 DOCSOC/1706855v23/022363-001; 7. Effect of Historic Covenants. The covenants and agreements established in these Historic Covenants shall. without regard to technical classification and designation. run with the land and be binding on each owner of the Historic Properties and any successor in interest to the Historic Properties. for the benefit of and in favor of City.. its successors and assigns. The covenants contained in these Historic Covenants shall remain in effect for the periods of time specified therein. City is deemed the beneficiary of the terms and provisions of these Historic Covenants and of the covenants running with the land. for and in its own rights and for the purposes of protecting the interests of the community and other parties, public or private. in whose favor and for whose benefit these Historic Covenants and the covenants running with the land have been provided. These Historic Covenants shall run in favor of City, without regard to whether City has been, remains or is an owner of anv land or interest in the Historic Properties or adjacent to the Historic Properties. City shall have the right. if any provision of these Historic Covenants is breached, to exercise all rights and remedies, and to maintain anv actions or suits at law or in equity or other proper proceedings to enforce the curing of such breaches to which it or any other beneficiaries of these Historic Covenants may be entitled. Term. These Historic Covenants shall continue in effect in perpetuity. [Signatures appear on following page.] Q_; DOCSOC/1706855v23/022363-0015 IN WITNESS WHEREOF, the parties hereto have executed these Historic Covenants as of the day and year first hereinabove written. CITY: CITy OF ANAHEIM. a California municipal corporation and charter city Dated: --.20 BN, - ATTEST: LINDA N. ANDAL, CITY CLERK City Clerk APPROVED AS TO FORM: MICHAEL HOUSTON, CITY ATTORNEY Theodore J. Revnolds Assistant Citv Attorney City Manager DEVELOPER: LAB HOLDING LLC. a California limited liability company Dated: —.20 By Its: Q-6 DOCSOC/1706855N,23/022363-001-5 ATTACHMENT NO. I TO EXHIBIT Q PROJET SITE MAP J ATTACHMENT NO. 1 TO EXHIBIT Q DOCSOC/170685 5e23/022363-001; ATTACHMENT NO. 2 TO EXHIBIT Q LEGAL DESCRIPTION OF HISTORIC PROPERTIES PROJECT #1: PACKING DISTRICT PACKING HOUSE The real property referred to herein is situated in the County of Orange, City of Anaheim. State of California, and is described as follows: PARCEL 3 OF PARCEL MAP NO. 2011-116 RECORDED JUNE 3, 2014 AS INSTRUMENT NO. 201400215209 IN BOOK 379. PAGES 15-20 OF PARCEL MAPS IN OFFICIAL RECORDS OF SAID COUNTY. PACKARD BUILDING The real property referred to herein is situated in the County of Orange, City of Anaheim. State of California, and is described as follows: PARCEL 1 OF PARCEL MAP NO. 2011-116 RECORDED JUNE 3, 2014 AS INSTRUMENT NO. 201400215209 IN BOOK 379, PAGES 15-20 OF PARCEL MAPS IN OFFICIAL RECORDS OF SAID COUNTY. 500 S. ANAHEIM BOULEVARD (MAKE BUILDING The real property referred to herein is situated in the County of Orange. City of Anaheim, State of California. and is described as follows: PARCEL 3 OF PARCEL MAP NO. 89-311. IN THE CITY OF ANAHEIM, COUNTY OF ORANGE. STATE OF CALIFORNIA, AS PER MAP FILED IN BOOK 260, PAGES 1 TO 4 INCLUSIVE OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPTING THEREFROM THAT PORTION CONVEYED TO THE CITY OF ANAHEIM IN GRANT DEED RECORDED MAY 02, 2006 AS INSTRUMENT NO. 2006000294061, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. ALSO EXCEPTING THEREFROM ALL OIL, MINERAL, GAS OR OTHER HYDROCARBON SUBSTANCES BELOW THE DEPTH OF 500 FEET, UNDER THE SURFACE OF SAID LAND. BUT WITHOUT THE RIGHT OF SURFACE ENTRY OR ANY OTHER USE OF THE LAND ABOVE SUCH 500 FOOT DEPTH, AS RESERVED IN DEED RECORDED MAY 05, 1989, AS INSTRUMENT NO. 89-238472 OF OFFICIAL RECORDS ATTACHMENT NO. 2 TO EXHIBIT Q DOCSOC/1706855v23/022363-0015 PROJECT #4: BURNS PROPERTY LOT 33 OF TRACT NO. 212 IN THE CITY OF ANAHEIM. COUNTY OF ORANGE. STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 13 PAGE(S) I OF MISCELLANEOUS MAPS IN THE OFFICE OF THE COUNITY RECORDER OF ORANGE COUNTY, CALIFORNIA. APN: 251-071-24 ATTACHMENT NO. 2 TO EXHIBIT Q DOCSOC/1706855N 23/022363-001; EXHIBIT R PROMISSORY NOTE .2016 PRINCIPAL AMOUNT: $2.500.000.00 FOR VALUE RECEIVED, the undersigned, LAB HOLDING LLC, a California limited liability company ("Borrower"), whose address is 709 Randolph Avenue_. Costa Mesa, California 92626, promises to pay to the order of THE CITY OF ANAHEIM, a California municipal corporation and charter city ("Lender"), at 200 South Anaheim Boulevard. Seventh Floor, Anaheim. California 92805, or at such other place as the Holder of this Note may from time to time designate in writing. in lawful monev of the United States of America, the principal sum of Two Million Five Hundred and no/100 Dollars ($2,500.000.00). and so much as may be advanced from time to time, with interest at the rate, and with principal and interest due and payable, all as set forth below. This Promissory Note is sometimes referred to herein as this "Note", and the loan evidenced by this Note is sometimes referred to herein as the "Loan". The Lender and/or its transferees or assigns are sometimes referred to herein as the "Holder" of this Note. This Note is made pursuant to that certain Disposition and Development Agreement by and between the Lender and the Borrower (as "City" and "Developer", respectively) dated as of .2016 (the "DDA"). The DDA is on file with the Citi' as a public record. Capitalized terms not defined herein shall have the respective meanings set forth therefor in the DDA. 1.1 Maturity Date. The date when all sums due under this Note are due and payable is the "Maturity Date". The Maturity Date shall mean the earliest to occur of (i) the recording as to all or any portion of the Property of a deed of trust securing repayment of Acquisition Financing; (ii) the recording as to all or any portion of the Property of a deed of trust securing repayment of Construction Financing; (iii) the obtaining of building permits for that portion of the Project to be constructed on Project Site No. 2; or (iv) the fifth anniversary date of the Closing. 1.2 Rate of Interest. The principal balance outstanding from time to time shall bear interest from and after the date advanced at the annual rate, compounded quarterly, of the greater of (i) four and one half per cent (4.50%) per annum, or (ii) the annual percentage rate of the Acquisition Financing (the "Note Rate"). 1.3 Method of Computation of Interest. Interest for periods of one or more whole calendar months shall be calculated on the basis of one -twelfth (1/12) of one year's interest for each such month that principal is outstanding. Interest for a period of less than a whole calendar month shall be calculated on the basis of one -three hundred sixtieth (1/360) of one year's interest on the outstanding principal at the applicable rate times the number of days during such period that principal is outstanding. 1.4 Monthly Pavments Prior to Maturity Date. On the first day of each calendar month commencing on the Closing Date until the Maturity Date, there shall be due and payable a monthly payment in an amount equal to all accrued interest. Except as otherwise set forth herein or in the other Loan Documents, interest shall be paid in arrears. R-1 DOCSOC/1706855v23/022363-0015 1.5 Payment in Full upon Maturity Date, On the Maturity Date, the entire unpaid principal balance and all accrued interest shall be due and payable. 1.6 Prepayments. Borrower may prepay all or any part of the principal balance at any time without charge or premium; provided. however. that any partial prepayments of principal shall be made in even One Hundred Thousand Dollars (ST, 100,000) increments. 1.7 Security, This Note is secured by, among other things, that certain Deed of Trust With Absolute Assignment of Leases and Rents, Security Agreement and Fixture Filing of even date herewith (the "Deed of Trust"), encumbering Borrower's interest in real property described in the Deed of Trust and improvements located or to be located thereon, and certain personal property. This Note, the Deed of Trust. and all other present and future agreements, documents and instruments executed or to be executed in connection with the Loan. all extensions, renewals, substitutions, replacements and modifications of any of the foregoing 'documents are referred to herein, collectively, as the "Loan Documents." 1.8 Application of Payments. All payments received, irrespective of how they may be designated by Borrower, shall be applied in this order: first, to amounts other than interest and principal, if any, owing under this Note. the Deed of Trust or any of the other Loan Documents; second, to accrued interest-, third, to principal-, except that. after the occurrence and during the continuation of any Event of Default'. all amounts received shall be applied in such order as Holder, in its sole discretion, may elect. Borrower waives the application of Sections 1479 and 2822(a) of the California Civil Code and any other statute or rule of law that would otherwise direct, or permit Borrower to direct, the order of application of payments made by Borrower or amounts otherwise received by Holder. 1.9 No Waiver by Acceptance of Overdue or Partial Payments. If Holder accepts payment of any overdue amount, or partial payment of an amount due and the remainder of such amount is unpaid, such acceptance shall in no event: (a) constitute a cure or waiver of Borrower's default with respect to such overdue or unpaid amount; (b) prevent Holder from exercising any of its rights and remedies with respect to Borrower's default. or (c) constitute a waiver of Holder's right to require full and timely payment of amounts becoming due thereafter or to exercise any of Holder's rights and remedies for any failure to so pay. 1.10 Late Payment Charge. Borrower acknowledges that late payment to Holder of any sums due hereunder will cause Holder to incur costs not contemplated hereunder, the exact amount of which would be impracticable or extremely difficult to ascertain. Such costs include processing and accounting costs. the expenses incurred and time and effort associated with recovering the delinquent payment, and the loss of timely use of the payment amount. Accordingly, if any amount due from Borrower, whether interest or principal, is not received by Holder or Holder's designee within ten (10) calendar days after its due date (except the payment due at the Maturity Date), Borrower shall then pay to Holder a late payment charge equal to ten percent (10.00%) of such overdue amount (the "Late Charge"). Borrower and Lender agree that such Late Charge represents a fair and reasonable estimate of the costs Holder will incur by reason of late payment. This provision shall not be construed as extending the time for payment of any amount under this Note, and acceptance of a Late Charge by Holder shall in DO event constitute a waiver of Borrower's default with respect to the overdue amount nor prevent Holder from exercising any of its rights and remedies with respect to such default. R-2 DOCSOC/1706855v23/022363-0015 1.11 Default. The term "Default" shall mean one or more of (i) the occurrence of an Event of Default as defined in the Loan Documents or (ii) the occurrence of a Breach under the DDA which has not been cured within any applicable Cure Period. The existence of a Default shall be deemed to be on the first date of the occurrence of an Event of Default (the "Date of Default'). and all rights and remedies of Lender. Beneficiary and Trustee under the Loan Documents with respect thereto, with or without notice, shall be retroactive to the Date of Default Events of Default include: (a) the failure of Borrower to make any payment of principal or interest on the Note when the same is due and payable, whether at maturity. by acceleration or otherwise: (b) the failure of Borrower to pay anv other amount due hereunder or under the Note when the same is due and payable: (c) the sale or transfer of the Property described in the Deed of Trust without the prior written consent of Lender unless such sale or transfer is otherwise authorized by express provision of the DDA; (d) the mortgage, assignment or further encumbrance of the Property, whether directly or indirectly. whether voluntarily, involuntarily or by operation of law, without the prior written consent of Lender: (e) the failure of Borrower to perform any obligation in the Deed of Trust, and the continuance of such failure for thirt}- (30) after notice, or within any longer grace period, if any, allowed in the Deed of Trust for such failure: and (f) the commission by Borrower (as Developer) of any Breach under the DDA which has not been cured by the applicable Cure Period under the DDA. 1.12 Acceleration upon Default. Upon the occurrence of an Event of Default, Holder may, at its election, declare the entire balance of principal and accrued interest immediately due and payable. A delay by Holder in exercising any right of acceleration after an Event of Default shall not constitute a waiver of the Event of Default or of the right of acceleration or any other right or remedy for such Event of Default, including the imposition of the Default Rate (defined below) from the date of the Event of Default. The failure by Holder to exercise any right of acceleration as a result of an Event of Default shall not constitute a waiver of the right of acceleration or any other right or remedy with respect to any other Event of Default, whenever occurring. 1.13 Acceleration in Other Events. The entire balance of principal and interest is also subject to acceleration upon the occurrence of certain events, including certain transfers of the Property, as provided in the Deed of Trust, and any transfer of the Property or any portion thereof which is not a "Permitted Transfer under the DDA. 1.14 Interest Rate after Acceleration or Maturity. When this Note becomes due in full, whether by acceleration (upon an Event of Default or otherwise), by the occurrence of the Maturitv Date, or in any other manner, if Borrower fails to pay all amounts due, the unpaid principal balance and costs incurred shall, from and after such date due and without notice, bear interest until paid at the rate of ten percent (10%) per annum (the "Default Rate"). 1.15 Enforcement Fees and Costs. Borrower shall immediately reimburse Holder for all fees and costs, including reasonable attorneys' fees and experts' fees and costs. incurred by Holder for: (a) enforcement of this Note or any of its terms, or the exercise of any rights or remedies hereunder and/or at law, in equity or otherwise. whether or not any action or proceeding is filed:. (b) representation of Holder in any bankruptcy, insolvency. reorganization or other debtor -relief or similar proceeding of or relatingto Borrower or Borrower's transferees or assigns, to anv person liable (by way of guaranty, assumption, endorsement or otherwise) upon any of the obligations of this Note, or to the Property; or (c) representation of Holder in any action or proceeding relating to the Property, whether commenced by Holder or any other person. including foreclosure, receivership, R-3 DOCSOC/1706855v23/022363-001 lien or stop -notice enforcement, bankruptcy. eminent domain and probate actions or proceedings. All such fees and costs shall bear interest until paid at the rate applicable from time to time under this Note. 1.16 Waivers by Borrower and Other Pat -ties. The Borrowers, endorsers, guarantors and sureties of this Note hereby waive diligence, demand, presentment, notice of non-payment, notice of dishonor, protest and notice of protest, agree that the time for performance of any obligation under this Note may be extended from time to time without notice, consent to the release without notice of any party, liable hereon or herefor. consent to the addition without notice of parties liable hereon or herefor, and consent to the acceptance without notice of further security for this Note, including other types of security, all without in anvwav affecting their liability, and waive the right . to plead any and all statutes of limitations as a defense to this Note, any guaranty hereof or any agreement to pay the obligations hereof, to the full extent permitted by law. 1.17 Full Payment. All amounts pavable under this Note shall be paid in full without setoff, deduction or counterclaim. All amounts payable under this Note shall be free and clear of and without any deduction or withholding for or on account of any taxes, levies, duties, charges. fees, restrictions or conditions of any nature now or hereafter imposed by any country, federal. state, county or local government or any political subdivision or taxing authority thereof or therein. Borrower shall indemnify Holder against any such taxes, levies, imposts, duties, charges and fees (other than taxes on the income of Holder imposed by any taxing authority) which may be assessed against Holder or claimed or demanded fi-orn Holder in respect of any amount payable by Borrower hereunder, and against any costs., charges, expenses or liability arising out of or with respect to such assessment, claim or demand, to the full extent permitted by law. 1.18 Time of the Essence. Time is of the essence with respect to the payment and performance of the obligations under this Note. 1.1.9 No Oral Waivers or Modifications. No provision of this Note may be waived or modified orally., but only in a writing signed by Holder. 1.20 Governing Law. This Note shall be governed by and construed tinder the laws of the State of California, without regard to conflict of law provisions. 1.21 Severability. Every provision of this Note is intended to be several. If any provision of this Note is determined by a court of competent jurisdiction to be illegal, invalid or unenforceable, such illegality. invalidity or unenforceability shall not affect the other provisions hereof, which shall remain binding and enforceable. 1.22 Limitation upon Interest. All agreements between the Borrower and Holder, now existing or hereafter arising. are hereby expressly limited so that in no event whatsoever shall the amount paid or agreed to be paid to Holder hereof for the use, forbearance or detention of money to be loaned hereunder or otherwise, or for the performance or payment of any covenant or obligation contained herein, exceed the maximum amount permissible under applicable law. If from anv circumstance whatsoever fulfillment of any provision hereof exceeds the limit of validity prescribed by lawthen, ipso the obligation to be fulfilled shall be reduced to the limit of such validity, and if from any such circumstance Holder hereof shall ever receive as interest under this Note or otherwise an amount that would exceed the highest lawful rate. such amount that would be excessive interest shall be applied to the reduction of the principal amount owing hereunder (without charge for R-4 DOCSOC/ 170685 5v23/022363-0015 prepayment) and not to the payment of interest, or if such excessive interest exceeds the unpaid balance of principal, such excess shall be refunded to Borrower. 1.23 Headings. Headings herein are used for convenience of reference only and do not define or limit the scope of provisions of this Note. 1.24 Successors and Assigns. This Note binds Borrower and its successors, permitted assigns, heirs, administrators and executors. and inures to the benefit of Holder and its successors, assigns, participants, heirs, administrators and executors. Holder in its sole discretion may transfer this Note, and may sell or assign participations or other interests in all or any part of this Note, all without notice to or consent of Borrower. Notwithstanding the foregoing portion of this Section 1.24, this Note is not assumable without the prior written approval of Holder, which Holder may grant, conditionally grant, or refuse at its sole and absolute discretion. 1.25 Counterparts. This Note maN be executed in one or more counterparts, each of which shall be deemed an original. LAB HOLDING LLC. a California limited liability company Dated: .20 By: Its: R-5 DOCSOC/1706855v23/022363-001 EXHIBIT S Recording Requested By: When Recorded Mail To: City of Anaheim 200 South Anaheim Boulevard, Seventh Floor Anaheim, California 92805 Attention: Citv Manager DEED OF TRUST WITH ABSOLUTE ASSIGNMENT OF LEASES AND RENTS, SECURITI' AGREEMENT AND FIXTURE FILING (First Priority) THIS DEED OF TRUST WITH ABSOLUTE ASSIGNMENT OF LEASES AND RENTS, SECURITY AGREEMENT AND FIXTURE FILING (this "Deed of Trust"), made as of 2016, is entered into by and among: LAB HOLDING LLC, a California limited liability company ("Trustor"). whose address is 709 Randolph Avenue, Costa Mesa, California 92626, and First American Title Insurance company ("Trustee"), and The City of Anaheim. a California municipal corporation and charter city (`Beneficiary"), whose address is 200 South Anaheim Boulevard, Seventh Floor, Anaheim, California 92805, Attention: City Manager. Trustor irrevocably grants, conveys and assigns to Trustee, IN TRUST FOR THE BENEFIT OF BENEFICIARY, WITH POWER OF SALE AND RIGHT OF ENTRY AND POSSESSION, all of Trustor's right, title and interest. whether now owned or hereafter acquired, in and to that certain real property hereinafter described (the "Land"), together with, all buildings and other improvements and fixtures now or hereafter located thereon (the "Improvements"), all development rights, mineral and oil rights, appurtenances. easements and rights relating thereto, and all additions and accretions to, and the proceeds of, any of the foregoing (all of the foregoing being collectively referred to as the "Property"): SEE ATTACHMENT NO. I ATTACHED HERETO FOR LEGAL DESCRIPTION For the purpose of securing the payment of the indebtedness under a loan (the "Loan") from Beneficiary to Trustor evidenced by a Promissory Note (the "Note") in the principal amount of Two Million Five Hundred and No/100 Dollars (52,500.000.00). including future advances thereunder, if any, together with the payment of all other sums becoming due and payable to Beneficiary under the documents and instruments evidencing or securing the Loan (together with this Deed of Trust. the "Loan Documents"), and the performance of all covenants and obligations of Trustor under the Loan Documents, payment of all other obligations owed by Trustor to Beneficiary, that by their terms recite that they are secured by this Deed of Trust. and all modifications, extensions and renewals of anv of the obligations secured hereby, however evidenced (collectively the "Secured Obligations"). The term "obligations" is used herein in its broadest and most comprehensive sense and shall be deemed to include. without limitation, all principal, interest, prepayment charges (if any). late charges, other charges, payments, and loan fees at any time accruing or assessed on anv of the Secured Obligations. This Deed of Trust secures the Loan as made by Beneficiary pursuant to that certain unrecorded agreement entitled "Disposition and Development Agreement" dated as of , 2016 by and between Beneficiary and Trustor (the "DDA"). The DDA is on file with the City as a public record. Any capitalized terms not defined herein shall have the respective meanings set forth therefor in the DDA. S-1 DOCSOC/I 706855x23/022363-0015 All terms of the Secured Obligations and the documents evidencing such obligations are incorporated herein by this reference. Any and all persons or entities who may have or acquire an interest in all or any part of the Property shall be deemed to have notice of the terms of the Secured Obligations. ARTICLE 1. ASSIGNMENT OF LEASES AND RENTS 1.1 Assignment. Trustor hereby irrevocably assigns to Beneficiary all of Trustor's right, title and interest in, to and under: (a) all leases of the Property or any portion thereof, and all other agreements of anv kind relating to the use or occupancy of the Property or any portion thereof, whether now existing or entered into after the date hereof ("Leases"), and (b) the rents, revenue, income, issues, deposits security deposits, letters of credit, lease bonds and other deposit substitutes or credit enhancements and profits of the Property, including, without limitation_ allamounts payable and all rights and benefits accruing to Trustor under the Leases ("Payments"). The term "Leases" shall also include all guarantees of and security for the lessees' performance thereunder, and all amendments, extensions, renewals or modifications thereto which are permitted hereunder. This is a present and absolute assignment, not an assignment for security purposes only, and Beneficiary's right to the Leases and Payments is not contingent upon, and may be exercised without possession of, the Property. 1.2 Grant of License. Beneficiary confers upon Trustor a license ("License") to collect and retain the Payments as they become due and payable, until the occurrence of a Default (as hereinafter defined). Upon a Default, the License shall be automatically revoked and Beneficiary may collect and apply the Payments pursuant to Section 4.4 without notice and without taking possession of the Propertv. Trustor hereby irrevocably authorizes and directs the lessees under the Leases to rely upon and comply with any notice or demand by Beneficiary for the payment to Beneficiary of any rental or other sums which may at any time become due under the Leases. or for the performance of any of the lessees' undertakings under the Leases, and the lessees shall have no right or duty to inquire as to whether any Default has actually occurred or is then existing hereunder. Trustor hereby relieves the lessees from any liability to Trustor by reason of relying upon and complying with any, such notice or demand by Beneficiary. 1.3 Effect of Assignment. The foregoing irrevocable assignment shall not cause Beneficiary to be: (a) a mortgagee in possession; (b) responsible or liable for performing any of the terms, agreements, undertakings, obligations, representations, warranties, covenants and conditions of the Leases-, or (c) responsible or liable for any waste committed on the Property by the lessees under any of the Leases or any other parties-, for any dangerous or defective condition of the Property.- or for any negligence in the management, upkeep, repair or control of the Property. Beneficiary shall not be liable to Trustor or any other person as a consequence of: (i) ) the exercise or failure to exercise by Beneficiary any of the rights, remedies or powers granted to Beneficiary hereunder; or (ii) the failure of Beneficiary to perform or discharge any obligation., duty or liability of Trustor arising under the Leases. 1.4 Representations and Warranties. Trustor represents and warrants that: (a) there are no Leases at the Property other than those set forth in writing and delivered to Beneficiary: (b) all existing Leases are in full force and effect and are enforceable in accordance with their respective terms, and no breach or default, or event which would constitute a breach or default after notice or the passage of time, or both. exists under any existing Leases on the part of any party; (c) no rent or other payment under any existing Lease has been paid by any lessee for more than one (1) month in advance-, and (d) none of the lessor's interests under any of the Leases has been transferred or assigned. 1.5 Leasing Covenants. Trustor covenants and agrees at Trustor's sole cost and expense to: (a) perform the obligations of lessor contained in the Leases and enforce by all available remedies performance by the lessees of the obligations of the lessees contained in the Leases; (b) give Beneficiary prompt written notice of any default which occurs with respect to any of the Leases. whether the default be that of the lessee or of file lessor'. (c) exercise Trustor's best efforts to keep all portions of the Property that are capable of being leased at all times at rentals not less than the fair market rental value: (d) deliver to Beneficiary fully executed, counterpart original(s) of each and every Lease if requested to do so, and (e) execute and record such additional assignments of an,,, Lease or specific subordinations (or subordination, attomment and non -disturbance agreements executed by the lessor and lessee) of any Lease to the Deed of Trust, in form and substance acceptable to Beneficiary, as Beneficiary may request. Trustor shall not, without Beneficiary's prior written consent: (i) enter into any Leases after the date hereof, (ii) execute any other assignment relating to any of the Leases; (iii) discount any rent or other sums due under the S-2 DOCS OC/1706855v23/022363-0015 Leases or collect the same in advance, other than to collect rentals one (1) month in advance of the time when it becomes due, (iv) terminate, modify or amend any of the terms of the Leases or in any manner release or discharge the lessees from any obligations thereunder; (v) consent to any assignment or subletting by anv lessee. Anv such attempted action in violation of the provisions of this Section 1.5 shall be null and void. Without in any way limiting the requirement of Beneficiary's consent hereunder, any sums received by Trustor in consideration of any termination (or the release or discharge of any lessee) modification or amendment of anv Lease shall be applied to reduce the outstanding Secured Obligations and any such sums received by Trustor shall be held in trust by Trustor for such purpose. 1.6 Estoppel Certificates. Within thirty (30) days after written request by Beneficiary, Trustor shall deliver to Beneficiary and to any parry designated by Beneficiary estoppel certificates executed by Trustor and by each of the lessees, in recordable form, certifying (if such be the case): (a) that the foregoing assignment and the Leases are in full force and effect; (b) the date of each lessee's most recent payment of rent; (c) that there are no defenses or offsets outstanding, or stating those claimed by Trustor or lessees under the foregoing assignment or the Leases. as the case may be; and (d) any other information reasonably requested by Beneficiary. ARTICLE 2. SECURITY AGREEMENT AND FIXTURE FILING 2.1 Security Interest. Trustor hereby grants and assigns to Beneficiary a security interest, to secure payment and performance of all of the Secured Obligations. in all of the following described personal property in which Trustor now or at any time hereafter has any interest (collectively, the "Collateral"): All goods, building and other materials, supplies, inventory, work in process. equipment, machinery, fixtures, furniture, furnishings, signs and other personal property and embedded software included therein and supporting information, wherever situated. which are or are to be incorporated into, used in connection with, or appropriated for use on the Land and the Improvements; together with all rents and security, deposits derived from Land and Improvements; all inventory, accounts. cash receipts, deposit accounts, accounts receivable, contract rights, licenses, agreements, general intangibles, payment intangibles, software. chattel paper (whether electronic or tangible), instruments. documents, promissory notes, drafts. letters of credit, letter of credit rights, supporting obligations, insurance policies, insurance and condemnation awards and proceeds, proceeds of the sale of promissory notes, any other rights to the payment of money, trade names, trademarks and service marks arising from or related to the ownership, management, leasing. operation, sale or disposition of the Land and the Improvements or any business now or hereafter conducted thereon by Trustor; all development rights and credits. and any and all permits, consents, approvals, licenses. authorizations and other rights granted by, given by or obtained from, any governmental entity with respect to the Land and the Improvements, or any of their affiliates, all warrants, stock options or similar rights owned by Trustor in and to any Tenant, any licensee or any other Person providing services related to or for the benefit of the Land and the Improvements, or any of their affiliates, all water and water rights, wells and well rights, canals and canal rights, ditches and ditch rights, springs and spring rights, and reservoirs and reservoir rights appurtenant to or associated with the Land and the Improvements, whether decreed or undecreed, tributary. non -tributary or not non - tributary, surface or underground or appropriated or unappropriated, and all shares of stock in water, ditch, lateral and canal companies, well permits and all other evidences of any of such rights. all deposits or other security now or hereafter made with or given to utility companies by Trustor with respect to the Land and the Improvements; all advance payments of insurance premiums made by Trustor with respect to the Land and the Improvements; all plans, drawings and specifications relating to the Land and the Improvements; all loan funds held by Beneficiary, whether or not disbursed. all funds deposited with Beneficiary pursuant to any loan agreement; all reserves, deferred payments, deposits, security deposits, letters of credit, lease bonds and other deposit substitutes, credit enhancements, other like items, accounts, refunds. cost savings and payments of any kind related to the Land and the Improvements or any portion thereof: together with all replacements and proceeds of, and additions and accessions to, any of the foregoing: together with all books, records and files relating to any of the foregoing. S-3 DOCSOC/1706855v23/022363-0015 As to all of the above described personal property which is or which hereafter becomes a "fixture" under applicable law, this Deed of Trust constitutes a fixture filing under the California Uniform Commercial Code, as amended or recodified from time to time ("UCC"). 2.2 Representations and Warranties. Trustor represents and warrants that: (a) Trustor has, or will have, good title to the Collateral: (b) Trustor has not previously assigned or encumbered the Collateral, and no financing statement covering any of the Collateral has been delivered to any other person or entity; (c) Trustor's principal place of business is located at the address shown in the heading of this Deed of Trust: and (d) Trustor's legal name is exactly as set forth on the first page of this Deed of Trust and all of Trustor's organizational documents or agreements delivered to Beneficiary are complete and accurate in every respect. 2.3 Covenants. Trustor agrees: (a) to execute and deliver such documents as Beneficiary deems necessary to create, perfect and continue the security interests contemplated hereby; (b) not to change its name. and as applicable, its chief executive office, its principal residence or the jurisdiction in which it is organized and/or registered without giving Beneficiary prior written notice thereof. (c) to cooperate with Beneficiary in perfecting all security interests granted herein and in obtaining such agreements from third parties as Beneficiary deems necessary, proper or convenient in connection with the preservation, perfection or enforcement of any of its rights hereunder, and (d) that Beneficiary is authorized to file financing statements in the name of Trustor to perfect Beneficiary's security interest in Collateral. 2.4 Remedies. This Deed of Trust constitutes a security agreement with respect to the Collateral in which Beneficiary is granted a security interest. Beneficiary has all of the rights and remedies of a secured party under the California Uniform Commercial Code as well as all other rights and remedies available at law or in equity. Trustor agrees to execute and deliver on demand. and irrevocably constitutes and appoints Beneficiary the attorney- in-fact of Trustor to execute. deliver, and file, any security agreements, financing statements. continuation statements. or other instruments that Beneficiary may request to impose, perfect or continue the perfection of the lien or security interest created by this Deed of Trust. Upon the occurrence of a Default (as hereinafter defined). Beneficiary will have the right to sell at any public or private sales as permitted by applicable law any of the Collateral that is personal property. Beneficiary will also have any other rights and remedies, whether at law, in equity, or by statute that are available to secured creditors. Any disposition may be conducted by an employee or agent of Beneficiary or Trustee. Any person or entity, including both Trustor and Beneficiary, will be eligible to purchase any part or all of the Collateral at any disposition. 2.5 Expenses. Expenses of retaking, holding and preparing for sale. selling. or the like will be borne by Trustor and will include Beneficiary's and Trustee's attorneys' fees and legal expenses. Trustor, on demand. will assemble the Collateral and make it available to Beneficiary at the Property. a place deemed to be reasonably convenient to Beneficiary and Trustor. Beneficiary will give Trustor at least ten (10) days' prior written notice of the time and place of any public sale or other disposition of the Collateral or of the time of or after which any private sale or any other intended disposition is to be made. If the notice is sent to Trustor in the manner provided for the mailing of notices in this Deed of Trust, it is deemed reasonable notice to Trustor. ARTICLE 3. RIGHTS AND DUTIES OF THE PARTIES 3.1 Title. Trustor represents and warrants that. except as disclosed to Beneficiary in a writing which refers to this warranty. Trustor lawfully holds and possesses fee simple title to the Property without limitation on the right to encumber. and that this Deed of Trust is a first and prior lien on the Property. 3.2 Taxes and Assessments. Subject to Trustor's rights to contest payment of taxes. Trustor shall pay prior to delinquency all taxes, assessments, levies and charges imposed by any public or quasi -public authority or utility company which are or which may become a lien upon or cause a loss in value of the Property or any interest therein (the "Impositions"). Trustor shall also pay prior to delinquency all Impositions imposed b)reasonof its interest in any Secured Obligation or in the Property. or by reason of any payment made to Beneficiary pursuant to any Secured Obligation: provided. however. Trustor shall have no obligation to pay taxes which may be imposed from time to time upon Beneficiary and which are measured by and imposed upon Beneficiary's net income. S-4 DOCSOC/1706855y23/022363-0015 3.3 Performance of Secured Obligations. Trustor shall promptly pay and perform each Secured Obligation when due. 3.4 Liens, Encumbrances and Charges. Trustor shall immediately discharge any lien not approved by Beneficiary in writing that has or may attain priority over this Deed of Trust. Trustor shall pay when due all obligations secured by or which may become liens and encumbrances which shall now or hereafter encumber or appear to encumber all or any part of the Property or Collateral, or any interest therein, whether senior or subordinate hereto. 3.5 Damages, Insurance and Condemnation Proceeds. The following (whether now existing or hereafter arising) are all absolutely and irrevocably assigned by Trustor to Beneficiary and, at the request of Beneficiary, shall be paid directly to Beneficiary: (i) all awards of damages and all other compensation payable directly or indirectly by reason of a condemnation or proposed condemnation for public or private use affecting all or any part of, or any interest in, the Property or Collateral; (ii) all other claims and awards for damages to, or decrease in value of. all or any part of, or anv interest in. the Propem, or Collateral: (iii) all proceeds of any insurance policies (whether or not expressly required by Beneficiary to be maintained by Trustor, including. but not limited to, earthquake insurance and terrorism insurance, if any) payable by reason of loss sustained to all or any part of the Property or Collateral: and (iv) all interest which may accrue on any of the foregoing. Subject to applicable law. Beneficiary may at its discretion apply all or any of the proceeds it receives to its expenses in settiing, prosecutingor defending any claim and may apply the balance to the Secured Obligations in such order and amounts as Beneficiary in its sole discretion may choose. and/or Beneficiary may release all or any part of the proceeds to Trustor upon any conditions Beneficiary may impose. Beneficiary may commence. appear in. defend or prosecute any assigned claim or action and may adjust, compromise, settle and collect all claims and awards assigned to Beneficiary. At its sole option, Beneficiary may permit insurance or condemnation proceeds held by Beneficiary to be used for repair or restoration but may condition such application upon reasonable conditions. 3.6 Maintenance and Preservation of the Property. Trustor covenants: (a) to insure the Property and Collateral against such risks as Beneficiary may require and, at Beneficiary's request. to provide evidence of such insurance to Beneficiary. and to comply with the requirements of any insurance companies providing such insurance: (b) to keep the Property and Collateral in good condition and repair. (c) not to remove or demolish the Property or Collateral or any part thereof, not to alter. restore or add to the Property or Collateral and not to initiate or acquiesce in any change in any zoning or other land classification which affects the Property without Beneficiary's prior written consent; (d) to complete or restore promptly and in good and workmanlike manner the Property and Collateral, or any part thereof which may be damaged or destroyed to the extent of any insurance proceeds actually received therefor: (e) subject to Trustor's right to reasonably contest same. to comply with all laws, ordinances. regulations and standards, and all covenants, conditions, restrictions and equitable servitudes of every kind and character which affect the Propem, or Collateral and pertain to acts committed or conditions existing thereon; (f) not to commit or permit waste of the Property or Collateral. and (g) to do all other acts which from the character or use of the Property or Collateral may be reasonably necessary to maintain and preserve its value. 3.7 Defense and Notice of Losses. Claims and Actions. At Trustor's sole expense, Trustor shall protect, preserve and defend the Property and Collateral and title to and right of possession of the Property and Collateral. the security hereof and the rights and powers of Beneficiary and Trustee hereunder against all adverse claims. Trustor shall give Beneficiary and Trustee prompt notice in writing of the assertion of any claim, of the filing of anv action or proceeding. of the occurrence of any damage to the Property or Collateral and of any condem- nation offer or action. 3.8 Acceptance of Trust: Powers and Duties of Trustee. (a) Trustee accepts this trust when this Deed of Trust is recorded. From time to time on written request of Beneficiary and presentation of this Deed of Trust for endorsement. and without affecting the personal liability of any person for payment of any indebtedness or the performance of any obligations, Trustee may. without liability and without notice: (i) reconvey all or any part of the Property. (ii) consent to the making of any map or plat, and (iii) join in any grant of easement. any declaration of covenants. conditions. and restrictions. any extension agreement, or any agreement subordinating the lien or charge of this Deed of Trust. S-5 DOCSOC/1706855,,23/022363-0015 (b) With the approval of Beneficiary. Trustee shall have the right to take any and all lawful action as Beneficiary may instruct Trustee to take to protect or enforce Beneficiary's rights hereunder. Trustee shall not be personally liable in case of entry by Trustee. or anyone entering by virtue of the powers herein granted to Trustee, upon the Property for debts contracted for or liability or damages incurred in the mana gement or operation of the Property. (0) All moneys received by Trustee shall, until used or applied as herein provided, be held in trust for the purposes for which they were received. but need not be segregated in any manner from any other moneys (except to the extent required by applicable law) and Trustee shall be under no liability for interest on any moneys received by Trustee hereunder. (d) Should any deed, conveyance, or instrument of any nature be required from Trustor by any Trustee or substitute Trustee to more fully and certainly vest in and confirm to the Trustee or substitute Trustee such estates, rights, powers, and duties. then., upon request by the Trustee or substitute Trustee, any and all such deeds. conveyances and instruments shall be made. executed, acknowledged, and delivered and shall be caused to be recorded and/or filed by Trustor. 3.9 Compensation: Exculpation; Indemnification. (a) Trustor shall pay Trustee's fees and reimburse Trustee for expenses in the administration of this trust, including attorneys' fees. Trustor shall pay to Beneficiary reasonable compensation for services rendered concerning this Deed of Trust, including without limit any statement of amounts owing under any Secured Obligation. Beneficiary shall not directly or indirectly be liable to Trustor or any other person as a consequence of (i) the exercise of the rights, remedies or powers granted to Beneficiary in this Deed of Trust, (ii) the failure or refusal of Beneficiary to perform or discharge any obligation or liability of Trustor under any agreement related to the Property or Collateral or under this Deed of Trust; or (iii) any loss sustained by Trustor or any third party resulting from Beneficiary's failure (whether by malfeasance, nonfeasance or refusal to act) to lease the Property after a Default (hereinafter defined) or from any other act or omission (regardless of whether same constitutes negligence) of Beneficiary in managing the Property after a Default unless the loss is caused by the willful misconduct of Beneficiary and no such liability shall be asserted against or imposed upon Beneficiary. and all such liability is hereby expressly waived and released by Trustor. (b) Trustor indemnifies and holds harmless Trustee and Beneficiary from and against all losses. damages. liabilities, claims, causes of action, judgments, court costs. attorneys' fees and other legal expenses, cost of evidence of title and value. and other expenses which either may suffer or incur: (i) by reason of this Deed of Trust. (ii) ' ) by reason of the execution of this Deed of Trust or in performance of any act required or permitted hereunder or by law, (iii) as a result of any failure of Trustor to perform Trustor's obligations, or (iv) by reason of any alleged obligation or undertaking on Beneficiary's part to perform or discharge any of the representations, warranties, conditions, covenants or other obligations contained in any other document related to the Property. The above obligations of Trustor to indemnify and hold harmless Beneficiary and Trustee shall survive the release and cancellation of the Secured Obligations and the release and reconveyance or partial release and reconveyance of this Deed of Trust. (c) Truster shall pay all amounts and indebtedness arising under this Section 3.9 immediately upon demand by Trustee or Beneficiary together with interest thereon from the date the indebtedness arises at the rate of interest then applicable to the principal balance of the Note as specified therein. 3.10 Substitution of Trustee. From time to time, by a writing. signed and acknowledged by Berieficiary, and recorded in the Office of the Recorder of the County in which the Property is situated, Beneficiary may appoint another trustee to act in the place and stead of Trustee or any successor. Such writing shall set forth any information required by law. The recordation of such instrument of substitution shall discharge Trustee herein named and shall appoint the new trustee as the trustee hereunder with the same effect as if originally named Trustee herein. A writing recorded pursuant to the provisions of this Section 3.10 shall be conclusive proof of the proper substitution of such new Trustee. S-6 DOCS00 170685 5v23/022363 -0015 3.11 Due on Sale or Encumbrance. If the Property or any interest therein shall be sold. transferred, mortgaged, assigned or further encumbered, whether directly or indirectly, whether voluntarily, involuntarily or by operation of law, without the prior written consent of Beneficiary, THEN Beneficiary, in its sole discretion, may declare all Secured Obligations immediately due and payable. 3.12 Releases, Extensions, Modifications and Additional Security. Without notice to or the consent. approval or agreement of any persons or entities having any interest at any time in the Property and Collateral or in any manner obligated under the Secured Obligations ("Interested Parties"), Beneficiary may, from time to time, release any person or entity from liability for the payment or performance of any Secured Obligation. take any action or make any agreement extending the maturity or otherwise altering the terms or increasing the amount of any Secured Obligation, or accept additional security or release all or a portion of the Property and Collateral and other security for the Secured Obligations. None of the foregoing actions shall release or reduce the personal liability, of any of said Interested Parties, or release or impair the priority of the lien of and security interests created by this Deed of Trust upon the Property and Collateral. 3.13 Reconvevance. Upon Beneficiary's written request, and upon surrender to Trustee for cancellation of this Deed of Trust or a certified cope thereof and any note. instrument, or instruments setting forth all obligations secured hereby. Trustee shall reconvey. without warranty. the Property or that portion thereof then held hereunder. To the extent permitted by law, the reconveyance may describe the grantee as "the person or persons legally entitled thereto' and the recitals of any matters or facts in any reconveyance executed hereunder shall be conclusive proof of the truthfulness thereof. Neither Beneficiary nor Trustee shall have any duty to determine the rights of persons claiming to be rightful grantees of any reconveyance. When the Property has been fully reconveyed, the last such reconveyance shall operate as a reassignment of all future rents, issues and profits of the Property to the person or persons legally entitled thereto. 3.14 Subrogation. Beneficiary shall be subrogated to the lien of all encumbrances, whether released of record or not, paid in whole or in part by Beneficiary pursuant to the Loan Documents or by the proceeds of any loan secured by this Deed of Trust. 3.15 Hazardous Materials. (a) Hazardous Materials Covenants. Trustor agrees as follows: (i) No Hazardous Activities. Trustor shall not cause or permit the Property to be used as a site for the use, generation, manufacture. storage, treatment. release, discharge, disposal, transportation or presence of any Hazardous Materials, which for purposes of this Deed of Trust shall mean any oil, flammable explosives, asbestos. urea formaldehyde insulation. radioactive materials, hazardous wastes, toxic or contaminated substances or similar materials, including, without limitation, any substances which are "hazardous substances." "hazardous wastes." "hazardous materials." "toxic substances." "wastes." "regulated substances," "industrial solid wastes." or `pollutants" under the Hazardous Materials Laws, as described below, and/or other applicable environmental laws, ordinances and regulations. "Hazardous Materials" shall not include commercially reasonable amounts of such materials used in the ordinary course of operation of the Property which are used and stored in accordance with all applicable environmental laws, ordinances and regulations. (ii) Compliance. Trustor shall comply and cause the PropeM, to comply with all "Hazardous Materials Laws" which for purposes of this Deed of Trust shall include, without Iimitation: the Clean Air Act, as amended, 42 U.S.C. Section 7401 et sec.; the Federal Water Pollution Control Act, as amended, 33 U.S.C. Section 1251 et sem.; the Resource Conservation and Recovery Act of 1976, as amended, 42 U.S.C. Section 6901 et se .; the Comprehensive Environment Response, Compensation and Liability Act of 1980, as amended (including the Superfund Amendments and Reauthorization Act of 1986, "CERCLA"), 42 U.S.C. Section 9601 et seq.; the Toxic Substances Control Act, as amended. 15 U.S.C. Section 2601 et seq.- the Occupational Safety and Health Act, as amended, 29 U.S.C. Section 651, the Emergency Planning and Community Right -to -Know Act of 1986, 42 U.S.C. Section 11001 et sem.; the Mine Safety and Health Act of 1977, as amended, 30 U.S.C. Section 801 et sec .; the Safe Drinking Water Act, as amended, 42 U.S.C. Section 300f et seq.; and all comparable state and local laws, laws of other jurisdictions or orders and regulations. S-7 DOCSOC/1706855v23/022363-0015 (iii) Notices. Trustor shall immediately notify Beneficiary in writing o£ (i) the discovery of any Hazardous Materials on, under or about the Property; (ii) any knowledge by Trustor that the Property does not comply with any Hazardous Materials Laws; (iii) any Hazardous Materials Claims, which for purposes of this Deed of Trust shall mean any pending or threatened claims against Trustor or the Property by any governmental entitv or agency or by any other person or entity relating to Hazardous Materials or pursuant to the Hazardous Materials Laws: and (iv) the discovery of any occurrence or condition on any real property adjoining or in the vicinity of the Property that could cause the Propert} or any part thereof to be designated as Border Zone Property. (iv) Remedial Action. In response to the presence of any Hazardous Materials on. under or about the Property. Trustor shall immediately take. at Trustor's sole expense, all remedial action required by any Hazardous Materials Laws or any judgment. consent decree. settlement or compromise in respect to any Hazardous Materials Claims. (b) Hazardous Materials Indemnity. Trustor hereby agrees to defend, indemnify and hold harmless Beneficiary, its directors, officers, employees, agents, successors and assigns from and against any and all losses. damages_ liabilities, claims. actions, judgments, court costs and legal or other expenses (including without Iimitation. attorneys' fees and expenses) which Beneficiary may incur as a direct or indirect consequence of the use, generation. manufacture. storage, disposal, threatened disposal, transportation or presence of Hazardous Materials in. on, under or about the Property. Trustor shall immediately pay to Beneficiary upon demand any amounts owing under this Indemnity, together with interest thereon at the rate provided in the Loan Documents. Trustor's duty and obligation to defend, indemnify and hold harmless Beneficiary shall survive the release, reconveyance or partial reconveyance of the Deed of Trust. (c) Legal Effect of Section. Trustor and Beneficiary agree that: (a) this Article 3 is intended as Beneficiary's written request for information (and Trustor's response) concerning the environmental condition of the real property security as required by California Code of Civil Procedure §726.5; and (b) each provision in this Article (together with any indemnity applicable to a breach of any such provision) with respect to the environmental condition of the real property security is intended by Beneficiary and Trustor to be an `.environmental provision" for purposes of California Code of Civil Procedure §736, and as such it is expressly understood that Trustor's duty to indemnify Beneficiary hereunder shall survive: (a) any judicial or non judicial foreclosure under the Deed of Trust, or transfer of the Property in lieu thereof, (b) the release and reconveyance or cancellation of the Deed of Trust; and (c) the satisfaction of all of Trustor's obligation under the Loan Documents. 3.16 Right of Inspection. Beneficiary. its agents and employees, may enter the Property at any reasonable time for the purpose of inspecting the Property and Collateral and ascertaining Trustor's compliance with the terms hereof, including the presence of Hazardous Materials. ARTICLE 4. DEFAULT PROVISIONS 4.1 Default. For all purposes hereof, the term "Default' shall mean (a) at Beneficiary's option, the failure of Trustor to make any payment of principal or interest on the Note or to pay any other amount due hereunder or under the Note when the same is due and payable, whether at maturity. by acceleration or otherwise. (b) the failure of Trustor to perform any non -monetary obligation hereunder, or the failure to be true of any representation or warranty of Trustor contained herein and the continuance of such failure for thirty (30) days after notice, or within any longer grace period, if any, allowed in the Deed of Trust for such failure. or (c) the existence of any Default as defined in the Loan Documents. 4.2 Rights and Remedies. At any time after Default. Beneficiary and Trustee shall each have all the following rights and remedies: (a) With or without notice. to declare all Secured Obligations immediately due and payable; (b) With or without notice, and without releasing Trustor from any Secured Obligation. and without becoming a mortgagee in possession, to cure any breach or Default of Trustor and, in connection therewith, S-8 DOCSOC/1706855v23/022363-001 to enter upon the Property and do such acts and things as Beneficiary or Trustee deem necessary or desirable to protect the security hereof, including, without limitation: (i) to appear in and defend any action or proceeding purporting to affect the security of this Deed of Trust or the rights or powers of Beneficiary or Trustee under this Deed of Trust; (ii) to pay, purchase_ contest or compromise any encumbrance, charge. Iien or claim of lien which, in the sole judgment of either Beneficiary or Trustee, is or may be senior in priority to this Deed of Trust, the judgment of Beneficiary or Trustee being conclusive as between the parties hereto: (iii) to obtain insurance; (iv) to pay any premiums or charges with respect to insurance required to be carried under this Deed of Trust, or (v) to employ counsel, accountants, contractors and other appropriate persons. (c) To commence and maintain an action or actions in any court of competent jurisdiction to foreclose this instrument as a mortgage or to obtain specific enforcement of the covenants of Trustor hereunder, and Trustor agrees that such covenants shall be specifically enforceable by injunction or any other appropriate equitable remedy and that for the purposes of any suit brought under this subparagraph. Trustor waives the defense of laches and any applicable statute of limitations; (d) To apply to a court of competent jurisdiction for and obtain appointment of a receiver of the Property as a matter of strict right and without regard to the adequacy of the security for the repayment of the Secured Obligations, the existence of a declaration that the Secured Obligations are immediately due and payable, or the filing of a notice of default. and Trustor hereby consents to such appointment; (e) To enter upon, possess, manage and operate the Property or any part thereof, to take and possess all documents, books, records, papers and accounts of Trustor or the then owner of the Property, to make, terminate. enforce or modify Leases of the Property upon such terms and conditions as Beneficiary deems proper, to make repairs, alterations and improvements to the Property as necessary. in Trustee's or Beneficiary's sole judgment, to protect or enhance the security hereof, (f) To execute a written notice of such Default and of its election to cause the Property to be sold to satisfy the Secured Obligations. As a condition precedent to any such sale. Trustee shall give and record such notice as the law then requires. When the minimum period of time required by law after such notice has elapsed, Trustee. without notice to or demand upon Trustor except as required by law, shall sell the Property at the time and place of sale fixed by it in the notice of sale, at one or several sales, either as a whole or in separate parcels and in such manner and order, all as Beneficiary in its sole discretion may determine, at public auction to the highest bidder for cash, in lawful money of the United States, payable at time of sale. Neither Trustor nor any other person or entity other than Beneficiary shall have the richt to direct the order in which the Property is sold. Subject to requirements and limits imposed by law. Trustee may from time to time postpone sale of all or any portion of the Property by public announcement at such time and place of sale. Trustee shall deliver to the purchaser at such sale a deed conveying the Property or portion thereof so sold, but without anv covenant or warranty, express or implied. The recitals in the deed of any matters or facts shall be conclusive proof of the truthfulness thereof. Any person. including Trustee. Trustor or Beneficiary may purchase at the sale; (g) To resort to and realize upon the security hereunder and any other security now or later held by Beneficiary concurrently or successively and in one or several consolidated or independent judicial actions or lawfully taken non judicial proceedings, or both, and to apply the proceeds received upon the Secured Obliga- tions all in such order and manner as Trustee and Beneficiary, or either of them, determine in their sole discretion. (h) Upon sale of the Property at any judicial or non -judicial foreclosure. Benefician, may credit bid (as determined by Beneficiary in its sole and absolute discretion) all or any portion of the Secured Obligations. In determining such credit bid, Beneficiary may, but is not obligated to. take into account all or any of the following: (i) appraisals of the Property as such appraisals may be discounted or adjusted by Beneficiary in its sole and absolute underwriting discretion. (ii) expenses and costs incurred by Beneficiary with respect to the Property prior to foreclosure; (iii) expenses and costs which Beneficiary anticipates will be incurred with respect to the Property after foreclosure, but prior to resale, including, without limitation, costs of structural reports and other due diligence, costs to carry the Property prior to resale. costs of resale (e.g. commissions, attorneys' fees. and taxes). costs of any hazardous materials clean-up and monitoring. costs of deferred maintenance. repair, refurbishment and retrofit, costs of defending or settling litigation affecting the Property, and lost opportunity costs (if any), including the time value of money during any anticipated holding period by Beneficiary; (iv) declining S-9 DOCSOC/l 706855y23/022363-0015 trends in real property values generally and with respect to properties similar to the Property, (v) anticipated discounts upon resale of the Property as a distressed or foreclosed property; (vi) the fact of additional collateral (if any), for the Secured Obligations: and (vii) such other factors or matters that Beneficiary (in its sole and absolute discretion) deems appropriate. In regard to the above. Trustor- acknowledges and agrees that: (w) Beneficiary is not required to use any or all of the foregoing factors to determine the amount of its credit bid: (x) this Section does not impose upon Beneficiary any additional obligations that are not imposed by law at the time the credit bid is made; (y) the amount of Beneficiary's credit bid need not have any relation to any loan -to -value ratios specified in the Loan Documents or previously discussed between Trustor and Beneficiary: and (z) Beneficiary's credit bid may be (at Beneficiary's sole and absolute discretion) higher or lower than any appraised value of the Property. 4.; Application of Foreclosure Sale Proceeds. After deducting all costs, fees and expenses of Trustee, and of this trust, including, without limitation, cost of evidence of title and attorneys' fees in connection with sale and costs and expenses of sale and of any judicial proceeding wherein such sale may be made. Trustee shall apply all proceeds of any foreclosure sale: (a) to payment of all sums expended by Beneficiary under the terms hereof and not then repaid, with accrued interest at the rate of interest specified in the Note to be applicable on or after maturity or acceleration of the Note; (b) to payment of all other Secured Obligations; and (c) the remainder, if any, to the person or persons legally entitled thereto. 4.4 Application of Other Sums. All sums received by Beneficiary under Section 4.2 or Section 1.21. less all costs and expenses incurred by Beneficiary or any receiver under Section 4.2 or Section 1.2, including, without limitation, attorneys' fees, shall be applied in payment of the Secured Obligations in such order as Beneficiary shall determine in its sole discretion; provided, however, Beneficiary shall have no liability for funds not actually received by Beneficiary. 4.5 No Cure or Waiver. Neither Beneficiary's nor Trustee's nor any receiver's entry upon and taking possession of all or any part of the Property and Collateral, nor any collection of rents, issues, profits, insurance proceeds, condemnation proceeds or damages. other security or proceeds of other security, or other sums, nor the application of any collected sum to any Secured Obligation, nor the exercise or failure to exercise of any other right or remedy by Beneficiary or Trustee or any receiver shall cure or waive any breach, Default or notice of default under this Deed of Trust, or nullifi the effect of any notice of default or sale (unless all Secured Obligations then due have been paid and performed and Trustor has cured all other defaults), or impair the status of the security, or prejudice Beneficiary or Trustee in the exercise of any right or remedy, or be construed as an affirmation by Beneficiary of any tenancy, lease or option or a subordination of the lien of or security interests created by this Deed of Trust. 4.6 Pavment of Costs. Expenses and Attornevs' Fees. Trustor agrees to pay to Beneficiary immediately and without demand all costs and expenses incurred by Trustee and Beneficiary pursuant to Section 4? (including, without limitation, court costs and attorneys' fees. whether incurred in litigation or not) with interest from the date of expenditure until said sums have been paid at the rate of interest then applicable to the principal balance of the Note as specified therein. In addition, Trustor shall pay to Trustee all Trustee's fees hereunder and shall reimburse Trustee for all expenses incurred in the administration of this trust, including, without limitation, any attorneys' fees. 4.7 Power to File Notices and Cure Defaults. Trustor hereby irrevocably appoints Beneficiary and its successors and assigns, as its attorney-in-fact. which agency is coupled with an interest. (a) to execute and/or record any notices of completion, cessation of labor. or any other notices that Beneficiary deems appropriate to protect Beneficiary's interest, (b) upon the issuance of a deed pursuant to the foreclosure of the lien of this Deed of Trust or the delivery of a deed in lieu of foreclosure, to execute all instruments of assignment or further assurance with respect to the Property and Collateral. Leases and Payments in favor of the grantee of any such deed. as may be necessary or desirable for such purpose, (c) to prepare, execute and file or record financing statements, continuation statements, applications for registration and like papers necessary to create, perfect or preserve Beneficiary's security interests and rights in or to any of the Property and Collateral, and (d) upon the occurrence of an event, act or omission which; with notice or passage of time or both, would constitute a Default. Beneficiary may perform any obligation of Trustor hereunder; provided, however. that: (i) Beneficiary as such attorney-in-fact shall only be accountable for such funds as are actually received by Beneficiary; and (ii) Beneficiary shall not be liable to Trustor S-10 DOCSOC/1706855v23/022363-0015 or any other person or entity for any failure to act (whether such failure constitutes negligence) by Beneficiary under this Section. ARTICLE 5. MISCELLANEOUS PROVISIONS 5.1 Merger. No merger shall occur as a result o! Beneficiary's acquiring any other estate in. or any other lien on. the Property unless Beneficiary consents to a merger in writing. 5.2 Obiiaations of Trustor, Joint and Several. If more than one person has executed this Deed of Trust as "Trustor", the obligations of all such persons hereunder shall be joint and several. 5.3 Waiver of Marshalling Rights. Trustor, for itself and for all parties claiming through or under Trustor, and for all parties who may acquire a lien on or interest in the Property and Collateral. hereby waives all rights to have the Property and Collateral and/or any other property, which is now or later may be security for any Secured Obligation ("Other Property") marshalled upon any foreclosure of the lien of this Deed of Trust or on a foreclosure of any other lien or security interest against any security for any of the Secured Obligations. Beneficiary shall have the right to sell, and any court in which foreclosure proceedings may be brought shall have the right to order a sale of, the Property and any or all of the Collateral or Other Property as a whole or in separate parcels. in any order that Beneficiary may designate. 5.4 Rules of Construction. When the identity of the parties or other circumstances make it appropriate, the singular number includes the plural. 5.5 Successors in Interest. The terms, covenants, and conditions herein contained shall be binding upon and inure to the benefit of the heirs, successors and assigns of the parties hereto; provided, however, that this Section 5.5 does not waive or modify the provisions of Section. 3.11. 5.6 Execution in Counterparts. This Deed of Trust may be executed in any number of counterparts. All counterparts shall be construed together and shall constitute but one Deed of Trust. 5.7 Governing Law-. This Deed of Trust shall be construed in accordance with the laws of the State of California, except to the extent that federal laws preempt the laws of the State of California. 5.8 Notices. All notices. demands or other communications required or permitted to be given pursuant to the provisions of this Deed of Trust shall be in writing and shall be considered as properly given if delivered personally or sent by first class United States Postal Service mail, postage prepaid, except that Notice of Default may be sent by certified mail, return receipt requested. or by Overnight Express Mail or by overnight commercial courier service, charges prepaid. Notices so sent shall be effective three (3) days after mailing, if mailed by first class mail., and otherwise upon receipt at the address set forth above; provided, however. that non -receipt of am, communication as the result of any change of address of which the sending party was not notified or as the result of a refusal to accept delivery shall be deemed receipt of such communication. For purposes of notice, the address of the parties are set forth in the heading of this Deed of Trust. Any party shall have the right to change its address for notice hereunder to any other location within the continental United States by the giving of thin (30) days' notice to the other party in the manner set forth hereinabove. [Si, -nature Page Follows) S-11 DOCSOC/1706855e23/022363-001 Dated: rNT WITNESS WHEREOF, Trustor has executed this Deed of Trust as of the day and year set forth above. .20 LAB HOLDING LLC. a California limited liability company Its: S-12 DOCSOC/1706855-,23/022363-0015 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 , before me. (insert name of notary) 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) DOCSOC/1706855v23/022363-0015 ATTACHMENT NO. 1 LEGAL DESCRIPTION LOTS 17 THROUGH 23 INCLUSIVE IN BLOCK M OF THE CENTER TRACT, AS PER MAP RECORDED IN BOOK 14, PAGE 13 OF MISCELLANEOUS RECORDS OF LOS ANGELES COUNTY. CALIFORNIA, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPT THEREFROM ALL OIL, MINERAL. GAS OR OTHER HYDROCARBON SUBSTANCES BELOW A DEPTH OF 500 FEET UNDER THE SURFACE OF SAID LAND, BUT WITHOUT THE RIGHT OF SURFACE ENTRY OR ANY OTHER USE OF THE LAND ABOVE SUCH 500 FOOT DEPTH, AS RESERVED IN DEED RECORDED MAY 05, 1989 AS INSTRUMENT NO. 89-238472, OFFICIAL RECORDS. APN: 037-024-11, and THE NORTH 100 FEET OF LOTS 17 THROUGH 23, INCLUSIVE. IN BLOCK L OF THE CENTER TRACT AS PER MAP RECORDED IN BOOK 14, PAGE 13 OF MISCELLANEOUS RECORDS OF LOS ANGELES COUNTY, CALIFORNIA, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPTING THEREFROM MINERAL AND OTHER RIGHTS AS RESERVED BY SOUTHERN PACIFIC COMPANY IN DEED RECORDED DECEMBER 20, 1958, IN BOOK 4528, PAGE 251 OF OFFICIAL RECORDS. APN: 037- 111-29, 37- 1ll-29, and THE SOUTH 35 FEET OF LOTS 17 THROUGH 23, INCLUSIVE. IN BLOCK L OF THE CENTER TRACT AS PER MAP RECORDED IN BOOK 14, PAGE 13 OF MISCELLANEOUS RECORDS OF LOS ANGELES COUNTY, CALIFORNIA, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 037- 111-30 Attachment No. 1 to Exhibit S DOCSOC/1706855v23/022363-0015 EXHIBIT T TERMINATION AGREEMENT This TERMINATION AGREEMENT (the "Agreement") is entered into as of _, 2016, by and among the CITY OF ANAHEIM, a California municipal corporation and charter city (herein the "City") on behalf of the City and the successor agency established pursuant to Health & Safety Code Sections 34170 et seq. as the successor agency to the Anaheim Redevelopment Agency ("Successor Agency). PACKING DISTRICT, LLC, a California limited liability company ("PDLLC"), and LAB HOLDING, LLC, a California limited liability company ("Developer"). RECITALS A. Pursuant to the provisions of the California Redevelopment Law (Health and Safety Code Section 33000 et seq.[the "Redevelopment Law"]), the City Council of the City of Anaheim, activated the Anaheim Redevelopment Agency (the "Former Agency"). B. By legislation enacted in 2011 (ABal 26, Chapter 1, Statutes of 2011 ["AB26"]), redevelopment agencies throughout California were dissolved, which dissolution was effective February 1, 2012. Under AB26, administration of activities of the Former Agency were to be conducted by a successor agency, as prescribed under Part 1.85, Chapter 3 as approved by AB26. The City was designated as the Successor Agency for such purposes. Additional legislation concerning the dissolution of redevelopment agencies was enacted by the California Legislature as AB 1484, Chapter 26. Statutes of 2012 ("AB 1484" and, together with AB 26 as amended thereby, the "Dissolution Act"). C. The Former Agency and PDLLC entered into an agreement dated as of November 1, 2010, entitled "Management and Operations Agreement" (the "Management and Operations Agreement"), a copy of which is on file with the City as a public record. D. The Management and Operations Agreement calls for various undertakings to be performed by PDLLC, including without limitation the establishment of certain bank accounts on behalf of the Former Agency, but administered pursuant to the Management and Operations Agreement by PDLLC as more particularly provided therein. E. City and Developer have entered into an agreement entitled "Disposition and Development Agreement", dated as of _ 2016 (the "DDA").. a copy of which is on file with City as a public record. The DDA pertain to certain property, consisting of Project Site No. 1, Project Site No. 2, Project Site No. 3 and Project Site No. 4 (collectively. the "Property") as described in the DDA. Pursuant to the DDA. the City has acquired title to the Property and has agreed to convey the Property to Developer. F. PDLLC and Developer are related entities. with common management elements. G. Under the DDA. the Management and Operations Agreement is to be terminated, as more particularly described below. concurrent with the conveyance of the Property to Developer (the "Closing"). T-1 DOCSOC/1706855v23/022363-0015 NOW, THEREFORE. THE PARTIES HERETO AGREE AS FOLLOWS: AGREEMENTS 1. Each of Developer and PDLLC has arranged for the transfer to City, concurrent with the Closing, of all moneys held in bank accounts established by Manager under the Management and Operations Agreement. The bank accounts and the amounts held therein are enumerated in Attachment No. I hereto. 2. Developer shall cause the transfer to City concurrent with the Closing of all moneys held in bank accounts established by Manager under the Management and Operations Agreement and close such accounts. PDLLC as well as Developer agrees to the termination of the Management and Operations Agreement concurrent with the Closing subject to the provisions of this Section 2. City will retain the moneys delivered to it under to this Section 2 pending an accounting, which shall be accomplished at City's cost, regarding such moneys-, to the extent the Manager would be entitled to receive moneys under the Management and Operations Agreement for undertakings which occurred prior to the Closing, as reasonably determined by the City Manager following consultation with Developer, City will, in conjunction with the Successor Agency, reserve such moneys for payment to Developer or Manager. Funds will be disbursed to Developer or Manager only after completion of such accounting and following receipt by City Manager of a statement by each of Manager and Developer consenting that one or the other is to receive payment. Where a payment is based upon services provided over a period of time, payment will be prorated to account for the Closing. Subject to the foregoing portion of this Section 2, including without limitation the tendering of moneys to City and the closing of bank accounts, the Management and Operations Agreement will be deemed terminated; provided that agreements, if any. entered into by Manager with third parties under the Management and Operations Agreement shall be deemed to survive, but neither City nor Successor Agency shall have any obligations or responsibilities thereunder. 3. Each of Developer and PDLLC will cooperate with City in connection with the implementation of this Agreement, including without limitation the completion of an accounting as described in Section 2. 4. The Successor Agency shall be deemed to be a third party beneficiary of this Agreement; excepting for the Successor Agency, there shall be no third party beneficiaries of this Agreement. 5. If any term, provision, condition or covenant of this Agreement or its application to any party or circumstances shall be held, to any extent, invalid or unenforceable, the remainder of this Agreement, or the application of the term, provision, condition or covenant to persons or circumstances other than those as to whom or which it is held invalid or unenforceable, shall not be affected, and shall be valid and enforceable to the fullest extent permitted by law. IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written. (signatures appear on following page) T-2 DOCSOC/170685 5v23/022363-0015 CITY OF ANAHEIM ME ATTEST: LINDA N. ANDAL, CITY CLERK Citv Clerk APPROVED AS TO FORM: MICHAEL HOUSTON, CITY ATTORNEY Theodore J. Reynolds Assistant City Attorney City Manager LAB HOLDING LLC, a California limited liability company UA Its: PACKING DISTRICT, LLC, a California limited liability company Its: T-3 DOCSOC/l 706855v23/022363-0015 ATTACHMENT NO. 1 LIST OF ACCOUNTS AND AMOUNTS HELD [to come] Attachment No. 1-1 to Exhibit T DOCSOC/1706855N-23/022363-0015 EXHIBIT U DOWNTOWN PARKING DOWNTOWN ANAHEIM PARKING FACILITIES Parking Facility Number Point of Access CarParkl: 201 S. Philadelphia Carpark 2: 235 E. Center Street Car-Parl, 3. 125 Cemejr Street Promenade Carpark 4: 295 Center Stneet Promenade CarPark 5: 1551N'. BroadwaN and 290 S. Lemon Street Carpark 6: 201 NN'. Broadway Carpark ?: 411 '%A'. OrtrAdway U-1 DOCSOC/1706855v23/022363-0015 Lincoln Ave. Hwba Lob0 Qak stree" Center Street communnyc Caftl ❑ � ( '--� Center Street on F Broadway Parking Facility Number Point of Access CarParkl: 201 S. Philadelphia Carpark 2: 235 E. Center Street Car-Parl, 3. 125 Cemejr Street Promenade Carpark 4: 295 Center Stneet Promenade CarPark 5: 1551N'. BroadwaN and 290 S. Lemon Street Carpark 6: 201 NN'. Broadway Carpark ?: 411 '%A'. OrtrAdway U-1 DOCSOC/1706855v23/022363-0015 EXHIBIT V OPTION AGREEMENT RE ADDITIONAL PARKING FOR PROJECT SITE NO. 1 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: Allen Matkins Leck Gamble Mallory & Natsis 1900 Main Street, 5th Floor Irvine, California 92614-7321 Attention: R. Michael Joyce, Esq. (Space Above For Recorder's Use) OPTION AGREEMENT RE ADDITIONAL PARKING FOR PROJECT SITE NO. I THIS OPTION AGREEMENT FOR ADDITIONAL PARKING FOR PROJECT SITE NO. 1 (this "Option Agreement") is made as of this _ day of , 2016, by and between CITY OF ANAHEIM, a California municipal corporation and charter city ("Optionor"), and LAB HOLDING, LLC. a California limited Iiability company ("Optionee"). Optionor and Optionee are sometimes hereinafter individually or collectively referred to as a "Party" or the "Parties". RECITALS: A. Optionor and Optionee have concurrently herewith entered into that certain unrecorded Disposition and Development Agreement dated , 2016 ("DDA"). All capitalized terms not defined herein shall have the meaning set forth in the DDA. The DDA is on file with Optionor as a public record. B. Pursuant to the DDA. Optionor, as Grantor, has agreed to convey to Optionee, as Grantee, among other property, that certain property described in the DDA as Project Site No. 1. C. As part of the grant of Project Site No. 1, Optionor has also provided Optionee with a Parkin-, Easement Agreement to serve the needs of Project Site No. 1. V-1 DOCSOC/1706855v23/022363-0015 D. Optionee is concerned that, in the future, it may need additional parking spaces allocated for use by Project Site No. 1. E. Optionor desires to grant Optionee and Optionee desires to acquire from Optionor an option to secure a parking easement with respect to an additional one hundred seventy (170) parking spaces within Carpark No. 2. NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration. the receipt and adequacy of which are hereby acknowledged, the Parties agree as follows: AGREEMENT 1. Grant of Option. Optionor hereby grants to Optionee an option to secure a parking easement in CarPark No. 2 for the use of one hundred seventy (170) parking spaces (the "Option") pursuant to the terms of the Parking Easement Agreement in the form attached hereto as Attachment No. 1. The Option shall be exercisable by Optionee, in the manner and on the terms and conditions set forth in this Option Agreement. 2. Option Term. The term of the Option ("Option Term") shall commence on the Closing. and shall terminate on the date which is ten (10) years after recordation of this Option Agreement. 3. Option Consideration. The consideration for the Option is included in the Purchase Price (the "Option Consideration"). The Option Consideration represents a fair market consideration for the grant of the Option right. 4. Exercise of Option. Optionee may exercise its Option at any time during the Option Term. upon thirty (30) days' notice to Optionor ("Notice of Exercise"). Optionee's delivery of the Notice of Exercise in accordance with the terms hereof shall create a binding contract for the easement. 5. Termination. The DDA is on file with the Optionor as a public record. The Optionor shall have the right to terminate this Option upon the occurrence of a "Breach" under the DDA which has not been cured within the applicable "Cure Period" (as such terms are defined within the DDA). 6. Modifications. No modifications of this Option shall be effective unless set forth in writing and signed by both Parties. 7. Further Assurances. Each Party shall execute such other and further documents as mav_ be necessary or proper in order to consummate the transaction contemplated by this Option Agreement. 8. Attorneys' Fees. (a) In the event either Party shall institute any action or proceeding to enforce any provision of this Option Agreement ("Action') or for damages by reasons of an alleged breach of any provision of this Option Agreement, the prevailing Party in such Action shall be entitled to recover from the other Party all of its costs and expenses incurred therein. including, without limitation, attorneys' fees. (b) The prevailing Party in any Action shall be entitled. in addition to and separately from the amounts recoverable under subsection 7(a), to the payment by the losing Party of the prevailing Party's reasonable attorneys' fees, court costs, and litigation expenses incurred in connection with (i) any appellate review of the judgment rendered in such Action or of any other ruling in such Action and (ii) any proceeding to enforce a judgment in such Action. The provisions of this subsection 7(b) shall be distinct and severable from the other provisions of this Option Agreement. shall survive the entry of judgment in any Action, and shall not be merged into such judgment. 9. Entire Agreement. The terms of this Option Agreement constitute the entire agreement between the Parties pertaining to the subject matter hereof. and all prior or contemporaneous agreements, representations, V-2 DOCSOC/1706855v23/022363-0015 negotiations and understandings of the Parties, whether oral or written. are hereby superseded and merged herein. No supplement, modification or amendment to this Option Agreement shall be binding unless in writing and executed by the Parties hereto. 10. Notice. Any notice, approval, consent or other communication to be given or other document to be delivered by any Party to the other or others hereunder, may be delivered in person to an officer of any Party, or may be delivered by Federal Express, private commercial delivery or courier service for next business day delivery, or may be deposited in the United States mail in the County of Orange, State of California, duly certified or registered, return receipt requested, with postage prepaid, and addressed to the Party for whom intended, as follows: If to Optionor: City of Anaheim 200 South Anaheim Boulevard, Seventh Floor Anaheim, California 92805 Attn: City Manager With copies to: City of Anaheim 200 South Anaheim Boulevard, Second Floor Anaheim, California 92805 Attn: City Clerk Community Development Department 201 South Anaheim Boulevard, Tenth Floor Anaheim, California 92805 Attn: John E. Woodhead IV. Executive Director Stradling, Yocca. Carlson & Rauth 660 Newport Center Drive, Suite 1600 Newport Beach, California 92660 Attn: Thomas P. Clark, Jr. If to Optionee: Lab Holding, LLC 709 Randolph Avenue Costa Mesa, California 92626 Attn: Shaheen Sadeghi With a copy to: Allen Matkins Leek Gamble Mallory & Natsis 1900 Main Street, 5th Floor Irvine, California 92614-7321 Attention: R. Michael Joyce, Esq. Fax No. (949) 553-8354 All notices, approvals, consents and other communications between the Parties shall be in writing. Any Party may from time to time, by written notice to the other, designate a different address which shall be substituted for the one above specified. If any notice or other document is sent by mail as aforesaid, the same shall be deemed served or delivered seventy-two (72) hours after the mailing thereof as above provided. Notice by any other method shall be deemed served or delivered upon actual receipt at the address listed above. V-3 DOCSOC/1706855v23/022363-0015 11. Binding Effect. This Option Agreement shall bind and inure to the benefit of the respective heirs, personal representatives, successive owners, and assigns of the Parties; provided, however, that this Option Agreement shall, upon recordation in the Official Records of Orange County of a notice of termination executed by Optionee, automatically terminate and be of no further force or effect. 12. Time of the Essence: Successors and Assigns. Time is of the essence of each and every provision of this Option Agreement. Each and all of the covenants and conditions of this Option Agreement shall inure to the benefit of and shall be binding upon the successors in interest of Optionee and the successors, heirs, representatives and assigns of Optionor. As used in the foregoing, "successors" shall refer to the successors in interest in the property, to all or substantially all of a Party's assets, and to successors by merger or consolidation. 13. Captions. The captions used herein are for convenience only and are not a part of this Option Agreement and are not in any way used to construe, interpret, limit or amplify the terms and provisions hereof. 14. Governing Law. This Option Agreement shall be governed by and construed under the laws of the State of California, and the laws of the United States of America prevailing in California. In the event of any legal action to enforce or interpret this Option Agreement, the sole and exclusive venue shall be a court of competent jurisdiction in the County of Orange, and the Parties hereto agree to and do herby submit to the jurisdiction of such court. 15. Severability. In the event that any phrase, clause, sentence, paragraph, section, article or other portion of this Option Agreement or the application thereof shall become illegal, null or void or against public policy, for any reason, or shall be held by any court of competent jurisdiction to be illegal, null or void or against public policy, the remaining portions of this Option Agreement shall not be affected thereby and shall remain in force and effect to the full extent permissible by law. 16. Waiver. No waiver by Optionee of a breach of any of the terms, covenants or conditions of this Option Agreement by Optionor shall be construed or held to be waiver of any succeeding or preceding breach of the same of any other term, covenant or condition herein contained. 17. Arbitration of Disputes. Any controversy relating to this Option Agreement shall be settled by arbitration before the JAMS, Inc. (the "Service"), located at 500 North State College Boulevard, No. 600, Orange, California 92668, in accordance with the usual procedures of the service, subject to the following provisions: (a) Notice to Arbitrate and Selection of Arbitrator. The Party seeking arbitration shall deliver a written Notice of Demand to Resolve Dispute (the "Demand") to the other Party to this Option Agreement and to the Service. The Demand shall include a brief statement of the Party's claim and the name of the proposed retired judge from the Service to decide the dispute ("Arbitrator"). Within ten (10) business days after receipt of the Demand, the other Party against whom a Demand is made shall deliver a written response ("Response") to the demanding Party and the Service. The Response shall include a short and plain statement of the Parry's defenses to the claim and shall also state whether the Party agrees to the Arbitrator chosen by the demanding Party. In the event the parties cannot agree upon an Arbitrator, the Service shall select and name an Arbitrator to conduct the hearings. (b) Venue. The locale of the arbitration shall be in the office of the Service. (c) Alternate Arbitrator. In the event the Service is no longer in business and there is no comparable successor. then the parties shall agree upon another Arbitrator. If the parties cannot agree upon another Arbitrator, then a single neutral arbitrator shall be appointed pursuant to Section 1281.6 of the Code of Civil Procedure. (d) Discovery. The parties shall be entitled to full rights of discovery as set forth in the Code of Civil Procedure for civil actions tried in the superior courts of the State of California. subject to such orders as maybe made by the Service. V-4 DOCSOC/1706855v23/022363-0015 (e) Powers of the Arbitrator. The Arbitrator's powers shall be limited as follows: the Arbitrator shall follow the substantive laws of the State of California. including rules of evidence. The Arbitrator shall have no power, authority or jurisdiction to award any punitive or exemplary damages. (f) Costs. The costs of the resolution shall be split equally between the parties, provided, however, that such costs, along with all other costs and expenses, including attorneys' fees, shall be subject to award. in full or in part, by the Arbitrator, in his/her discretion, to the prevailing Party. Unless the Arbitrator so awards attorneys' fees, each Party shall be responsible for its own attorneys' fees. (g) Continuitv of Hearings. To the extent possible, the arbitration hearings shall be conducted on consecutive days, excluding Saturdays. Sundays and holidays. until the completion of the case. (h) Right to Join Third Parties in Arbitration. In connection with any arbitration proceedings commenced hereunder, either Party shall have the right to join any third parties in such proceedings in order to resolve any other disputes, the facts of which are related to the matters submitted for arbitration hereunder. NOTICE: BY INITIALING IN THE SPACE BELOW YOU ARE AGREEING TO HAVE ANY DISPUTE ARISING OUT OF THE MATTERS INCLUDED IN THE 'ARBITRATION OF DISPUTES' PROVISION DECIDED BY NEUTRAL ARBITRATION AS PROVIDED BY CALIFORNIA LAW AND YOU ARE GIVING UP ANY RIGHTS YOU MIGHT POSSESS TO HAVE THE DISPUTE LITIGATED IN A COURT OR JURY TRIAL. IF YOU REFUSE TO SUBMIT TO ARBITRATION AFTER AGREEING TO THIS PROVISION, YOU MAY BE COMPELLED TO ARBITRATE UNDER THE AUTHORITY OF THE CALIFORNIA CODE OF CIVIL PROCEDURE. YOUR AGREEMENT TO THIS ARBITRATION PROVISION IS VOLUNTARY. WE HAVE READ AND UNDERSTAND THE FOREGOING AND AGREE TO SUBMIT DISPUTES ARISING OUT OF THE MATTERS INCLUDED IN THE 'ARBITRATION OF DISPUTES' PROVISION TO NEUTRAL ARBITRATION. Optionor's Initials Optionee's Initials is. Counterparts. The Parties hereto may execute this Option Agreement and any other documents contemplated hereby in any number of counterparts, each of which shall be deemed to be an original instrument but all of which shall constitute one (1) agreement; alternately, executed signature pages from such counterparts may be attached to a copy of this document and so assembled shall thereby constitute one (1) agreement. 19. Resolution of Contractual Uncertainties. Both Optionor and Optionee, with the assistance of their respective counsel, have actively negotiated the terms and provisions of this Option Agreement. Therefore, Optionor and Optionee each waives the effect of California Civil Code Section 1654 which interprets uncertainties in a contract against the Party who drafted the contract. 20. Facsimile Signatures. When this Option Agreement is signed by Optionee or Optionor, Optionee or Optionor may deliver this Option Agreement to the other Party via electronic facsimile or other electronic means. Facsimile or electronic signatures shall be as valid and binding upon the Parties as are original ink signatures. If a Party (referred to in the remainder of this Section 20 as the "Sender") (whether Optionor or Optionee) who receives a signed Option Agreement from the other (whether such signed Option Agreement is an original document or an electronic facsimile) signs this Option Agreement and returns via electronic facsimile or other electronic means only the signature page of this Option Agreement to the other Party (referred to in the remainder of this Section 20 as the "Receiver"), then the sending of the signature page shall constitute a declaration by the Sender that this Option Agreement has been signed in the form and content received by the Sender without modification unless the Sender simultaneously notifies the Receiver that the Sender has made revisions to this Option Agreement and sends the revised pages or a letter describing the revisions along with the signature page. The facsimile or electronic signature shall not be deemed binding upon the Parties if the Receiver notifies the Sender that the Receiver rejects any part of or all of the revisions made to this Option Agreement by the Sender. Without in any way affecting the validity or V-5 DOCSOC/1706855v23/022363-0015 finality of this Option Agreement. the Receiver of a facsimile Option Agreement or signature page may request that the Sender sign and return one or more original ink counterparts of this Option Agreement with the Sender's signature notarized and witnessed, or attested if applicable, and the Sender shall promptly comply with the request. 21. Performance of Acts on Business Days. Unless specifically stated to the contrary, all references to days herein shall be deemed to refer to calendar days. In the event that the final date for payment of any amount or performance of any act hereunder falls on a Saturday, Sunday or holiday, such payment may be made or act performed on the next succeeding business day. [SIGNATURE PAGE FOLLOWS] V-6 DOCSOC/1706855v23/022363-0015 The Parties have executed this Option Agreement as of the date first above stated. "OPTIONOR" CITY OF ANAHEIM. a California municipal corporation and charter city LOW City Manager V-7 DOCSOC/I 706855N,23/022363-0015 "OPTIONEE" LAB HOLDING LLC, a California limited liability company 52 Its: 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 Orange On , before me, (insert name of notary) Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the persons) 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. (Seal) DOCSOC/I 706855v23/022363-0015 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 Orange On , before me, (insert name of notary) 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) DOCSOC/1706855v23/022363-0015 ATTACHMENT NO. I TO EXHIBIT V PARKING EASEMENT AGREEMENT RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO City of Anaheim 201 S. Anaheim Boulevard Anaheim, California 92805 Attn: Community Development Director With a copy to: Lab Holding, LLC 709 Randolph Avenue Costa Mesa, California 92626 Attention: Shaheen Sadeghi RECORDED FOR THE BENEFIT OF THE CITY OF ANAHEIM AND IS EXEMPT FROM FEE PER GOVERNMENT CODE §§ 27383 AND 6103 PARKING EASEMENT AGREEMENT This PARKING EASEMENT AGREEMENT (this "Agreement") is entered into as of 2016, by and between the CITY OF ANAHEIM, a California municipal corporation and charter city and municipal corporation (the �"Cit a 7"), and LAB HOLDINGS, LLC, a California limited liability company (the "Developer'). RECITALS A. The City and Developer entered into that certain Disposition and Development Agreement dated for purposes of identification only as of , 2016 (as may be amended from time to time, the "DDA"). The DDA provides for, among other things, the development of certain real property located in Anaheim,, California, referred to in the DDA as "Project Site No. I," which is also sometimes referred to as the "Packing District." Project Site No. I includes a two-story restaurant and retail development known as the "Packing House," a single -story, retail development occupied by a restaurant and brewery, known as the "Packard Building," a park known as "Farmers Park'" and another parcel currently being developed by the Developer with an approximately 10.500 square foot warehouse divided into several areas appropriate for private operation as a brewery, winery, or other food or beverage producer with indoor and outdoor areas known as the "MAKE Building." B. City owns three parcels of real property which are developed with surface parking lots as follows: Attachment No. 1 -1 to Exhibit V DOCSOC/1706855v23/022363-0015 "Parking Lot F (APN 037-0213-09)-46 spaces "Parking Lot 2" (portion of APN 251-084-02) — 52 spaces "Parking Lot 3" (portion of APN 251-081-23) — 19 spaces Parking Lot 1, Parking Lot 2 and Parking Lot 3 are referred to in this Agreement each individually as a "Parking Lot" and collectively as the "Parking Lots." C. In order to facilitate the development and operation of the Packing District as contemplated by the DDA, the City and Developer have entered into this Agreement pursuant, to which the City will provide perpetual easements for the use of Parking Spaces within the Parking Lots, for the benefit of the Packing District and the public, on the terms and conditions contained herein. NOW, THEREFORE, in consideration of the mutual covenants and promises set forth herein, the parties hereby agree as follows: 1. Definitions. The following capitalized terms used in this Agreement shall have the following meanings: "Alterations" is defined in Section 9 hereof. "Benefited Prope " means, collectively, the Packing House, the Packard Building, Farmers Park and the MAKE Building. "Burdened Prope " means Parking Lot 1, Parking Lot 2 and Parking Lot 3. "City" is defined in the preamble of this Agreement. "City FF&E" is defined in Section 13 hereof. "Customers" means the customers and invitees of the retail tenants of Project Site No. t. "Daily Parking Rates" means any payment made by a Customer, the public or other user of a Parking Lot for parking on a daily basis. The Daily Parking Rates shall be determined from time to time by the Developer and shall not exceed the prevailing market rate for comparable garages in the City. Saturday. "DDA" is defined in Recital A hereof. "Default" is defined in Section 20.1 hereof. "Designated Business Hours" means 8:00 a.m. to 12:30 a.m. Sunda), through "Developer" is defined in the preamble of this Agreement, "Director" means the City ` s Community Development Director. Attachment No. 1-2 to Exhibit V DOCSOC/1706855v23/022363-0015 "Easements" means the easements granted to the Developer pursuant to Section 2 of this Agreement. "Effective Date" means the date upon which fee title to the Benefited Property is conveyed to the Developer. "Estoppel Certificate" is defined in Section 23.3. "Environmental Laws" means (1) Sections 25115, 25117, 25122.7 or 25140 of the California Health and Safetv Code, Division 20, Chapter 6.5 (Hazardous Waste Control Law)), (ii) Section 25316 of the California Health and Safety Code. Division 20, Chapter 6.8 (Carpenter - Presley -Tanner Hazardous Substance Account Act), (iii) Section 25501 of the California Health and Safety Code. Division 20. Chapter 6.95 (Hazardous Materials Release Response Plans and Inventory), (iv) Section 25281 of the California Health and Safety Code, Division 20, Chapter 6.7 (Underground Storage of Hazardous Substances), (v) Article 9 or Article 11 of Title 22 of the California Administrative Code, Division 4, Chapter 20, (vi) Section 311 of the Clean Water Act (33 U.S.C. §1317), (vii) Section 1004 of the Resource Conservation and Recovery Act, 42 U.S.C. §6901 et seq. (42 U.S.C. §6903) or (viii) Section 101 of the Comprehensive Environmental Response. Compensation and Liability Act, 42 U.S.C. §6901 et seq. "Farmers Park" is located within the Packing District as shown on the Site Map. "FF&E" means collectively, all furniture, fixtures and equipment. "Hazardous Materials" means any substance, material, or waste which is or becomes regulated by any local governmental authority, the State of California, or the United States Government, including, but not limited to, any material or substance which is (i) defined as a "hazardous waste", ``acutely hazardous waste". "extremely hazardous waste". or "restricted hazardous waste" under Section 25115, 25117 or 25122.7, or listed pursuant to Section 25140 of the California Health and Safety Code, Division 20, Chapter 6.5 (Hazardous Waste Control Law), (ii) defined as a "hazardous substance" under Section 25316 of the California Health and Safety Code,, Division 20, Chapter 6.8 (Carpenter -Presley -Tanner Hazardous Substance Account Act), (iii) defined as a "hazardous material", "hazardous substance". or "hazardous waste" under Section 25501 of the California Health and Safety Code. Division 20, Chapter 6.95 (Hazardous Materials Release Response Plans and Inventory), (iv) defined as a "hazardous substance" under Section 25281 of the California Health and Safety Code, Division 20, Chapter 6.7 (Underground Storage of Hazardous Substances), (v) petroleum, (vi) asbestos, (vii) polychlorinated byphenyls, (viii) listed under Article 9 or defined as "hazardous" or "extremely hazardous" pursuant to Article I 1 of Title 22 of the California Code of Regulations, Chapter 20, (ix) designated as "hazardous substances" pursuant to Section 311 of the Clean Water Act (33 U.S.C. Section 1317), (x) defined as a "hazardous waste" pursuant to Section 1004 of the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901 et seq. (42 U.S.C. Section 6903). (xi) defined as "hazardous substances' pursuant to Section 101 of the Comprehensive Environmental Response.. Compensation, and Liability Act, 42 U.S.C. Section 9601 et seq., (xii) methyl -tertiary butyl ether, or (xiii) any other substance. whether in the form of a solid, liquid, gas or any other form whatsoever, which by any Governmental Requirements either requires special handling in its use, transportation, generation. collection, storage. handling, treatment or disposal, or is defined as "hazardous' or harmful to the environment. Attachment No. 1-3 to Exhibit V DOCSOC/1706855N,23/022363-0015 "Indemnitees" means the City and its representatives, officials, employees, volunteers and agents. "Interest Rate" means the prime rate, as published in the Wall Street Journal from time to time, or if the Wall Street Journal is no longer published, an equivalent rate selected by the Parties. "Laws and Regulations" is defined in Section 14.1 hereof. "Liabilities" means liabilities, suits, actions, claims, demands, penalties, damages (including without limitation, penalties, fines, and monetary sanctions), giving rise to losses, costs or expenses (including, without limitation, consultants' fees, and reasonable attorneys' fees) of any kind or nature and for any damages, including damages to property or injuries to persons, including accidental death, (including reasonable attorneys' fees and costs in connection therewith). "MAKE Building" is located within the Packing District as shown on the Site Map. "Matters of Record" means all easements. agreements, rights-of-way, liens, covenants, conditions, or restrictions of any nature now or hereafter affecting the Benefited Property or Burdened Property or any part thereof and constituting a matter of public record. "Mortgage" is defined in Section 19.1 hereof. "Mortgagee" is defined in Section 19.1 hereof. "Official Records" means the official records of Orange County, California. "Developer FF&E" is defined in Section 13 hereof. "Packard Buildinga" is located within the Packing District as shown on the Site Map. "Packing District" means, collectively, the Packard Building, Farmers Park, Packing House, MAKE Building and surrounding property as shown on the Project Site Map. "Packing House" is located within the Packing District as shown on the Site Map. "Parking Lots" is defined in Recital E hereof. The legal description of the Parking Lots is attached hereto as Exhibit B. Lots. "Parking Operator" is defined in Section 8 hereof. "Parking Revenues" means all revenues generated by the operation of the Parking "Parking Rules" is defined in Section 5 hereof. "Parking Spaces" means 117 parking spaces for non-exclusive use by the Developer and its Customers anywhere in the Parking Lots. "PILty" means each of the Developer and City, who are jointly, the "Parties." Attachment No. 1-4 to Exhibit V DOCSOC/l 706855x23/022363-0015 "Permitted Vehicle" means passenger cars, and standard -size vans, standard -size sports utility vehicles or standard -size pick-up trucks, provided that any such vehicles do not exceed 20 feet in length or the posted height restrictions for the Parking Lots. "Person" means an individual. corporation, partnership, limited liability company, joint venture, association, firm, joint stock company, trust, unincorporated association, governmental authority or agency, or other entity. "Presence" means the presence, release, use. generation, discharge, storage and disposal of any Hazardous Materials. "Project Site No. 1" is defined in the DDA and is shown on the Site Map. The legal description of the Project Site No. 1 is attached hereto as Exhibit A. "Short Term Spaces" is defined in Section 11.2 hereof. "Site Map" means the site map showing Project Site No. 1 and the Parking Lots which is attached hereto as Exhibit C. "Term" is defined in Section 4 hereof. 2. Grant of Easements. 2.1 Non -Exclusive Parking Spaces. City hereby irrevocably grants to the Developer: (i) a non-exclusive easement for the benefit of the Developer, its employees and its Customers to park Permitted Vehicles in the Parking Spaces, (ii) a non-exclusive easement for the benefit of the Developer, its employees and its Customers for ingress and egress by Permitted Vehicles through the driveways and drive aisles of the Parking Lots for the purpose of access to the Parking Spaces. and (iii) a non-exclusive easement for the benefit of the Developer, its employees and its Customers for pedestrian ingress and egress through the Parking Lots for the purpose of access to the Parking Spaces. 2.2 Nature of Easements. The Easements granted herein shall run with the land, and are irrevocable except as expressly provided herein. but are not intended to grant a fee interest or leasehold interest in the Parking Lots or any other real property. 2.3 Dominant and Servient Estates. Each easement granted pursuant to the provisions hereof is expressly and solely for the benefit of the Benefited Property, and the Benefited Property shall be the dominant estate and the Burdened Property shall be the servient estate. All easements created by or pursuant to this Agreement shall be appurtenant easements and not easements in gross. Except as set forth in Section 4, any easement granted pursuant to the provisions of this Agreement may be abandoned or terminated only by execution of an agreement so abandoning or terminating the same, by the Developer of the dominant estates and consented to by the Mortgagee, if any, of the dominant estate. None of the easements created pursuant to this Agreement shall be relocated without the written consent of the Developer and its Mortgagees. Reserved. 4. Term. The term of this Agreement (the "Term'") shall commence upon the Effective Date and shall continue in perpetuity unless (a) the Agreement is terminated by mutual written Attachment No. 1-5 to Exhibit V DOCSOC/ 170685 5N723/022363-001 i agreement of the parties, or (b) the Agreement is terminated, as provided herein. 5. Parking Rules. Subject to the prior written consent of the City, which consent shall not be unreasonably withheld. the Developer may from time to time enact reasonable and nondiscriminatory policies, rules and regulations for the operation and use of the Parking Lots (the "Parking Rules"). Developer covenants that it will not enact Parking Rules that unreasonably interfere with the use of the Parking Lots by the public. In the event of a conflict between the provisions of this Agreement and the Parking Rules in effect from time to time, the provisions of this Agreement shall prevail. 6. Operation, Maintenance and Repair. The Developer shall, at the Developer's sole cost and expense, operate, maintain and repair, or cause to be operated. maintained or repaired. the Parking Lots in good order, condition and repair in accordance with the practices generally prevailing in the operation of structured parking within other similar mixed-use projects located in Orange County, California. Without limiting the generality of the foregoing, Developer shall perform or cause the following to be performed: (a) Clean and maintain all surfaces of the Parking Lots and keep such surfaces level and evenly covered with the type of surfacing material originally installed thereon, or such substitute thereof as shall be equal thereto in quality, appearance and durability; (b) Remove all papers, debris, filth and refuse from the Parking Lots and wash or thoroughly sweep paved areas: (c) Remove trash from trash receptacles and clean trash receptacles; (d) Clean, maintain, repair and replace entrance, exit and directional signs, traffic control signage, markers and lights into and within the Parking Lots; (e) Clean lighting fixtures and relamp and reballast; (f) Maintain, repair and replace striping and curbing; (g) Maintain and repair any structures or buildings constructed in the Parking Lots, as needed; (h) Repaint and refinish all painted and finished surfaces; (i) Maintain, repair and replace, if needed, all mechanical, electrical and utility facilities and systems that are a part of or serve the Parking Lots. (j) Except as otherwise provided herein, maintain, repair and replace all parking revenue control equipment, parking access control equipment, security systems and traffic barriers; (k) Make all repairs, improvements or alterations required to comply with applicable Laws; and (1) Enforce the Parking Rules. Attachment No. 1-6 to Exhibit V DOCSOC/1706855v23/022363-0015 7. Failure to Maintain. In the event that Developer or its Parking Operator fails to commence to maintain or repair the Parking Lots in the conditioned required by this Agreement within five (5) business days after written notice from the City, then the City shall give a second notice to Developer and its Parking Operator stating the maintenance or repair Developer and/or its Parking Operator has failed to perform. If within five (5) business days after such second written notice, Developer has failed to commence such repair or maintenance, the City may (but shall not be required to) perform such repair or maintenance at Developer's cost, in which event Developer shall reimburse the City on demand for all reasonable out-of-pocket costs and expenses incurred by the City in connection therewith, with interest accruing thereon at the Interest Rate. Notwithstanding the foregoing, in the event the maintenance or repair cannot reasonably be completed within the time periods set forth above, City shall not have the right to perform any such repair or maintenance so long as Developer or its Parking Operator has commenced such maintenance or repair within the time periods set forth above and diligently pursues the same to completion. S. Parking Operator. Developer may from time to time delegate its operation, maintenance and repair obligations for the Parking Lots to a qualified third -party parking operator ("Parking Operator"). City Management Corporation ("CMC") shall serve as the initial Parking Operator. In the event that the Developer elects to change the Parking Operator, the identity of such Parking Operator shall be subject to the prior written approval of the City, which approval shall not be unreasonably withheld. 9. Alterations. Developer shall have the right from time to time, at its expense, to make additions, alterations or improvements (collectively, "Alterations") to the Parking Lots, provided that (a) the Alterations do not unreasonably interfere with the use of the Parking Lots by the public.. and (b) the Alterations shall have been approved by the Director, in his reasonable discretion. As used in the Agreement, the term "Alterations" shall include any re -striping of the Parking Lots. 10. Parking Revenues. All Parking Revenues attributable to Daily Parking Rates shall be deposited in an account (the "Reserve Account") as designated by Developer to be used for future operating, maintenance and capital improvements and/or replacements to the Parking Lots. Developer shall annually, on or before March 31, provide an accounting to the City of all Parking Revenues deposited into the Reserve Account and all expenditures from the Reserve Account during the prior calendar year. 11. Use of Parkinz Lots. 11.1 Parking Spaces. Customers shall have the non-exclusive right to use the Parking Spaces in common with the public and other users of the Parking Lots. The Parking Spaces shall be available on a first come, first served basis, during all operating hours for the Parking Lots. There will be no overnight parking in the Parking Spaces, but the Parking Spaces will be available for use by Customers until at least one hour after the last retail tenant closes for business each night. The Parking Spaces shall not be used by retail tenants of Project Site No. 1 for employee parking except as expressly permitted by the City, in writing, from time to time. Employee parking shall be limited to Designated Business Hours. 11.2 Short Term Parkin. Unless expressly authorized by the City in writing, none of the Parking Spaces shall be restricted as short term parking spaces. Attachment No. 1-7 to Exhibit V DOCSOC/1706855v23/022363-0015 11.3 Validation. Parking in the Parking Lots shall be free for up to two (2) hours with validation (as described below). After two (2) hours of validated parking, Daily Parking Rates will apply. Developer may institute a validation program for the public and retail parking in the Parking Lots. The Developer shall be solely responsible for the cost of validation machines, if any, used in connection with the operation of the Parking Lots. 11.4 Cily's Reserved Rights. City reserves the right to utilize the Parking Lots for public and other parking purposes, so long as the same do not unreasonably burden Developer's use of or interfere with the use of the Easements granted hereunder to the Developer. 12. Access Control Equipment. The parties agree as follows with respect to the access control equipment installed or to be installed within the Parking Lots: Any access control systems for the Parking Lots will be installed, operated, maintained, repaired, and replaced (as needed) by the Developer at its sole cost and expense; provided that the Developer may use the Reserve Account to pay for such costs. Unless and until an access control system is installed at the entrance to each of the Parking Lots, the Developer shall take reasonable steps (which may include hiring attendants) to ensure the use of the Parking Structures complies with the terms of this Agreement. 13. Ownership of FF&E. During the entire Term and thereafter, the Parking Lots and all Alterations thereto, shall be owned by and shall be considered the property of City. All FF&E that are made, constructed or placed in or on the Parking Lots by City (the "City's FF&E"), and all changes, alterations.. improvements and additions thereto, shall also be owned by and shall be considered the property of City. All FF&E that are made, constructed or placed in or on the Parking Lots by Developer (the "Developer FF&E"), if any, and all changes, alterations, improvements and additions thereto, shall be owned by and shall be considered the property of the Developer. Upon the expiration or earlier termination of this Agreement, all of the City's FF&E shall be owned by and considered the property of City and all of the Developer FF&E shall be owned by and considered the property of Developer, and Developer shall have the right, but not the obligation, to promptly remove its Developer FF&E. The Developer shall be responsible for the cost of any repairs to the Parking Lots and the City's FF&E caused by such removal. Any Developer FF&E not removed by Developer within sixty (60) days following the expiration or earlier termination of this Agreement shall thereafter become the property of the City. 14. Matters of Record. Laws and Permits. 14.1 Matters of Record: Laws and Permits in General. The City and Developer shall comply with all Matters of Record, and all applicable federal, state and local laws, statutes, orders, ordinances, rules, regulations.. plans, policies and decrees (collectively, the "Laws and Regulations") with respect to its activities on and/or in the Parking Lots. The Developer shall promptly furnish to City copies of any and all permits, licenses and approvals which they receive or submit with respect to the activities conducted in connection with the Easements. 14.2 Environmental Laws. 14.2.1 Developer shall not knowingly, and shall not knowingly permit any third party to, use, generate, store or dispose of any hazardous material on, under, about or within the Parking Lots in violation of the Environmental Laws. Attachment No. 1-8 to Exhibit V DOCSOC/1706855v23/022363-0015 14.2 .2 The Developer shall comply in all material respects, to the best of its reasonable ability, with the requirements of the Environmental Laws and shall notiAr City immediately in the event of any discharge or discovery by Developer of any Hazardous Materials at, upon. under or within the Parking Lots: provided, however, Developer. shall have no obligation to remediate any Hazardous Materials on the Parking Lots the Presence of which first occurred before the Effective Date. The Developer shall promptly forward to City copies of all orders. notices, permits, applications or other communications and reports forwarded or received by in connection with any discharge or the presence of any Hazardous Material or any other matters relating to the Environmental Laws, as they may affect the Parking Lots. 14.2.3 Developer Indemnitor re Hazardous Materials. Developer shall indemnify, defend and hold the Indemnitees harmless from and against all Liabilities arising from, related in any respect to, or as a result of (i) the Presence of Hazardous Materials on the Parking Lots which Presence first occurred after the Effective Date. and (ii) the Presence of Hazardous Materials on the Parking Lots, which Hazardous Materials were not Hazardous Materials at the Effective Date, but became Hazardous Materials after the Effective Date as a result of an amendment to, or interpretation of. the Environmental Law; provided. that none of the same were directly and proximately caused by City or any of its agents. employees or contractors. City shall cooperate with Developer to ensure that City has assigned to Developer any and all rights that City acquired in its acquisition of the Parking Lots or any portion thereof to permit Developer's prosecution of claims against any third parties who are potentially responsible for such Hazardous Materials. 14.2.4 Developer Release. Developer agrees to and hereby shall release the Indemnitees from and against all Liabilities arising from, related in any respect to, or as a result of (i) the Presence of Hazardous Materials on the Parking Lots that first existed on the Parking Lots as of the Effective Date. but were discovered after the Effective Date. and (ii) the Presence of Hazardous Materials on the ParklnQ Lots. which Hazardous Materials were not identified and/or defined as such under the Environmental Laws as of the Effective Date but became Hazardous Materials after the Effective Date as a result an amendment to, or interpretation of, the Environmental Law. Notwithstanding the foregoing, Developer is not releasing any, person or entity other than the Indemnitees. 15. Taxes. Developer shall be solely responsible for the payment of any and all real property taxes, impositions or similar charges levied against the Parking Lots, including, any possessory interest taxes relating to the use and occupancy of the Parking Lots which max, be imposed on the interest of the Developer in the Parking Lots. This provision constitutes written notice to the Developer pursuant to California Revenue and Taxation Code Section 107. 16. Assignment and Sublettintr. Except as otherwise expressly provided in this Agreement, Developer shall not voluntarily or involuntarily assign its interest in this Agreement. the Easements granted hereunder or in the Parking Lots, separate and apart from any Transfer (as defined in the DDA] of its interest in and to the Benefited Property, or grant any sub -easement or sublicense with respect to all or any part of the Parking Lots, without City's prior written consent, which consent may be granted or withheld in City's sole discretion. 17. Insurance. 17.1 Insurance Policies for Developer. Without limiting City's right to indemnification, it is agreed that Developer shall cause to be secured prior to the Effective Date. and Attachment No. 1-9 to Exhibit V DOCSOC/1706855 23/022363-001 maintain during the Term, comprehensive general liability insurance, or commercial general liability insurance. including coverage for contractual liability, personal injury liability, products/completed operations liability, broad -form property damage. independent contractor's liability and fire damage legal liability, in an amount of not less than Two Million Dollars ($2,000,000.00) per occurrence, combined single limit, written on an occurrence forin. The Director, with the consent of the City's Risk Manager, is hereby authorized to reduce the requirements set forth above in the event the Director determines that such reduction is in Citv's best interest. 17.2 Insurance Requirements for Developer. The insurance policies maintained by the Developer under Section 17.1 shall comply with the following requirements: (a) Each insurance policy shalt provide that the insurance shall not be canceled, materially limited in scope or coverage,. or non -renewed until after thirty (30) days' prior written notice has been given to the City Clerk, 200 S. Anaheim Boulevard, Anaheim, CA 928051, except in the event of cancellation for non-payment of premium which shall provide for not less than ten (10) days' notice" (b) Each insurance policy shall provide as follows: "It is agreed that any insurance or self-insurance maintained by the City of Anaheim shall apply in excess of and not contribute with insurance provided by this policy to the extent of insured's obligations under the Parking Easement Agreement." (c) Each insurance policy shall contain the following clause: "The City of Anaheim and its officials, agents, employees, representatives, and volunteers are added as additional insureds as respects operations and activities of, or on behalf of the named insured, performed under the Parking Easement Agreement." (d) Prior to the Effective Date, the Developer shall deliver to Citta (i) insurance certificates confirming the existence of the insurance required by Section 17.1. and including the applicable clauses referenced above and (ii) endorsements to the above -required policies, which add to these policies the applicable clauses referenced above. Such endorsements shall be signed by an authorized representative of the insurance compam- and shall include the signatory's company affiliation and title. Should it be deemed necessary by City, it shall be the Developer's responsibility to see that City receives documentation, acceptable to City, which sustains that the individual signing such endorsements is indeed authorized to do so by the insurance company. Also, City has the right to reasonably request that the Developer provide City copies of any insurance policies required under this Agreement, which request shall be reasonably honored by the Developer within a reasonable time. (e) Nothing herein contained shall be construed as limiting in any way the extent to which the Developer may be held responsible for payment of damages to persons or property resulting from the performance of the Developer or its subcontractors under this Agreement. 18. Indemnification by the Developer. The Developer shall defend, indemnify, assume all responsibility for, and hold the Indemnitees, harmless from, all claims, demands, damages, defense costs or liability of any kind or nature relating to any damages to property or injuries to persons, including accidental death (including attorneys' fees and costs); which may be caused by any of the activities or performance by the Developer under this Agreement, whether such activities or performance thereof be by Developer or by anyone directly or indirectly employed or contracted Attachment No. 1-10 to Exhibit V DOCSOC/1706855%;23/022363-001 5 with by Developer and whether such damage shall accrue or be discovered before or after termination of this Agreement. Notwithstanding the foregoing. Developer shall not be liable to City for property damage or bodily injury caused (i) by the sole negligence of City or its designated agents or employees or (ii) by City's failure to comply with the terms and conditions of this Agreement. The rights and obligations set forth in this Section 18 shall survive the termination of this Agreement. 19. Mortgagee Protections. 19.1 Provisions Benefiting Mortgagee. This Section is for the exclusive benefit of, and its terms may only be enforced by, a Mortgagee (as defined below) and its successors, assigns or participants. Provided that City has received notice of the identity and address of any such Mortgagee, Cite hereby covenants and agrees to faithfully perform and comply with the provisions of this Section. For purposes hereof. a "Mortgagee" shall mean the holder of any deed of trust. mortgage and/or other real property lien document executed by Developer from time to time which encumbers all or any portion of Project Site Ne. I (collectively. a "Mortgage"). 19.2 Permitted Assignments. Notwithstanding any contrary provision of this Agreement. no restrictions on assignment of Developer's interest in this Agreement shall be applicable to: (i) the granting of a Mortgage by Developer, (ii) an assignment of this Agreement at a foreclosure sale under a Mortgage or in connection with a judicial foreclosure of a Mortgage; (iii) an assignment made to a Mortgagee in lieu of foreclosure; or (iv) any subsequent assignment by a Mortgagee if the Mortgagee is the assignee under an assignment referred to in clauses (ii) and (iii) above. In any such event. the Mortgagee shall forthwith give written notice of the assignment to City setting forth the name and address of the Assignee. the effective date of such assignment and including a copy of the document by which such assignment was made and by which the assignee expressly assumes and agrees to perform all the other obligations of the Developer under this Agreement; provided. however. that the failure to provide any such notice or assignment and assumption document shall constitute a Default by such assignee under this Agreement but shall not invalidate the transfer of Developer's estate to such assignee. Any such assignee shall be liable to perform the obligations of the Developer first arising from and after the date of such assignment under this Agreement (for which purpose a reimbursement or indemnity obligation arising after such assignment as the result of an event occurring prior to such assignment shall be considered an obligation arising prior to such assignment) only so lona as such assignee holds title to the Developer's estate or interest in Project Site No. 1. 19.3 Provisions of a Mortgage. City hereby agrees that a Mortgage may, at the election of the Mortgagee. include provisions which provide: (a) For the entry of such Mortgagee upon the Parking Lots during business hours. without notice to City or the Developer, to view the state of the Parking Lots; (b) That a Default by the Developer under this Agreement shall constitute a default under the Mortgage; (c) For an assignment of all or any portion of the Developer's rights under this Agreement, including without limitation, the Developer's right, if any, to terminate, cancel. modifV. change. supplement. alter or amend this Agreement_ Attachment No. 1-1 I to Exhibit V DOCSOC/1706855v23/022363-0015 (d) For the foreclosure of the Mortgage pursuant to a power of sale, by judicial proceedings or other lawful means and the subsequent sale of the estate or interest to the purchaser at the foreclosure sale and a sale by such purchaser if the purchaser is the Mortgagee; (e) For the appointment of a receiver., irrespective of whether the Mortgagee accelerates the maturity of all indebtedness secured by the Mortgage: and (f) For the right of the Mortgagee or the receiver to enter and take possession of the Developer's interest under this Agreement. to collect the subrentals, issues and profits therefrom and to cure any default under the Mortgage or any Default by the Developer under this Agreement. 19.4 No Termination. Except as expressly set forth in this Agreement, no action by Developer to cancel, surrender, or modify the terms of this Agreement shall be effective for any purpose or binding on any person without the prior written consent of each existing Mortgagee of Developer, which consent may be withheld in any such Mortgagee's reasonable discretion. 19.5 Notices. If City shall give any, notice, demand. election or other communication required or permitted to be given hereunder including, without limitations, a notice of a Developer Default to the Developer, then City shall give a cop), of each such notice to the Mortgagee at the address designated by it and such notice shall be effective upon receipt at such address. No notice given by City to the Developer shall be binding upon or affect such Mortgagee unless a copy of such notice shall be given to it pursuant in this Section. In the case of an assignment of such Mortgage or change in address of such Mortgagee, such assignee or Mortgagee may change the address to which such copies of notices are to be sent by delivering written notice thereof to City. 19.6 Performance of Covenants. any term, covenant or condition and to remedy anv and City shall accept such performance with the Developer. Each Mortgagee shall have the right to perform Default by the Developer under this Agreement, same force and effect as if furnished by the 19.7 Delegation to Mortaaaee. The Developer may delegate irrevocable to Mortgagee the non-exclusive authority to exercise any or all of Developer' s rights hereunder, but no such delegation shall be binding upon City unless and until either the Developer or the Mortgagee shall give to City a true copy of a written instrument effecting such delegation. Such delegation of authority may be effected by the terms of the Mortgage itself in which case service upon City or an executed counterpart or conformed copy of such Mortgage, together with written notice specifying the provisions therein which delegate such authority to such Mortgagee, shall be sufficient to give City notice of such delegation. 19.8 Default by Developer. 19.8.1 Monetary Default. In the event of a Default by Developer in the payment of any monetary obligation hereunder. City agrees not to terminate this Agreement unless City provides written notice of such Default to any Mortgagee and such Mortgagee shall have failed to cure such Default within thim (30) days following receipt by such Mortgagee of written notice from City that such Default remained uncured following the expiration of the Developer's cure period. Attachment No. 1-12 to Exhibit V DOCSOC/1706855v23/022363-0015 19.8.2 Non -monetary Default. In the event of a Default by the Developer in the performance or observance of any non -monetary term, covenant, or condition to be performed by it hereunder. City agrees not to terminate this Agreement unless City provides written notice of such Default to any Mortgagee and such Mortgagee shall have failed to cure such Default within sixty (60) days following receipt by such Mortgagee of written notice from City that such Default remained uncured following the expiration of the Developer's cure period; provided that if such Default is curable by such Mortgagee without possession of the Developer's interest in this Agreement but the cure cannot reasonably be effected within such sixty (60) day period, then such 60 -day period shall be extended so long as such Mortgagee promptly commences cure (in anv event. within such initial 60 -day period), and thereafter diligently prosecutes such cure to completion; and provided further that if such Default cannot practicably be cured by the Mortgagee without taking possession of the Developer's interest in this Agreement, or if such Default is not susceptible of being cured by the Mortgagee, then City shall not terminate this Agreement if and as long as the Mortgagee shall (i) institute foreclosure proceedings and diligently prosecute the same to completion (or, in its absolute discretion, acquire the Developer's estate hereunder by deed in Iieu of foreclosure on or before the date on which the foreclosure sale would otherwise have occurred), (ii) commence such cure within thirty (30) days following such foreclosure or acquisition, and (iii) thereafter diligently prosecute such cure to completion. The Mortgagee shall not be required to institute or diligently continue with foreclosure proceedings as provided above if and when such Default shall be cured by the Developer. 19.8.3 Other Defaults. Nothing herein shall preclude City from exercising any of its rights or remedies with respect to any other Default by the Developer during any period of such forbearance, but in such even the Mortgagee shall have all of its rights provided for herein. 19.8.4 Mortzagee Not Obligated to Cure Default. A Mortgagee shall not have anv obligation to cure any Default by the Developer under this Agreement. 19.9 Bankruptcy Events. In no event shall City have any right to terminate this Agreement based on the bankruptcy or insolvency of the Developer, as long as the Developer is not otherwise in Default hereunder. 19.10 Further Amendments. City and the Developer hereby agree to cooperate in including in this Agreement by suitable amendment from time to time any provision which may reasonably be requested by any proposed Mortgagee for the purpose of implementing the Mortgagee protection provisions contained in this Agreement and allowing such Mortgagee reasonable means to protect or preserve the lien of the Mortgage on the occurrence of a Developer Default. City and the Developer each agree to execute and deliver (and to acknowledge, if necessary, for recording purposes) any agreement reasonably necessary to effectuate anv such amendment; provided, however, that any such amendment shall not in any material respect adversely affect any rights of City under this Agreement. 19.11 Personal Liability of Mortgagee. No Mortgagee shall become personally liable for the performance or observance of any covenants or conditions to be performed by the Developer unless and until such Mortgagee becomes the owner of the Developer's estate or interest hereunder upon the exercise of any remedy provided for in its Mortgage. Thereafter such Mortgagee shall be liable for the performance and observance of such covenants and conditions only so long as such Mortgagee owns such interest. Attachment No. 1-13 to Exhibit V DOCSOC/1706855v23/022363-0015 19.12 More Than One Mortgagee. In the event two or more Mortgagee each exercise their rights hereunder and there is a conflict which renders it impossible to comply with all such requests, the Mortgagee whose Mortgage would be senior in priority if there were foreclosure shall prevail. 20. Defaults and Remedies. 20.1 Enforcement of Agreement. A Party harmed by a default or violation of this Agreement ("Default") shall have the right to enforce this Agreement against any other Party that is in violation of, or Default under, this Agreement, and the harmed Party may prosecute any appropriate proceedings at law or in equity against the violating or defaulting Party. The non - defaulting Party may, in any such proceeding, obtain injunctive or other equitable relief requiring the violating or defaulting Pam, to observe or perform this Agreement or restraining violations and Defaults under this Agreement; recover damages on account of such violation or Default; secure.. by way of specific performance or otherwise, the performance of any covenant, condition, easement or restriction in this Agreement; and/or obtain any other remedy provided for at law or in equity. 20.2 Enforcement Procedures against Developer. 20.2.1 Prior to the exercise of any rights against Developer, a notice must be sent to the Developer (and its Mortgagee if such Mortgagee shall have provided its address for notices) specifying the nature of the Default. 20.2.2 In the case of a monetary Default, if the Default is not cured within ten (10) days after notice to the Developer under Section 20.2.1, the City may, for the purpose of securing such claim, impose a lien upon Project Site No. 1. Such lien may be imposed by serving written notice upon Developer and its Mortgagee, if any. which shall contain a representation of compliance with the provisions of this Section, an explanation as to the nature of the Default, together with a description of Project Site No. 1, and by duly recording a copy of said notice in the Official Records. No such lien shall exist until such notice is duly served and recorded as provided herein. 20.2.3 In the case of a non -monetary Default, if the Default is not cured within thirty (30) days after notice to the Developer under Section 20.2.1, then the City may cure the Default on behalf and at the cost of the Developer and may, for the purpose of securing such costs, impose a lien upon Project Site No. 1. Such lien may be imposed by serving written notice upon the Developer and its Mortgagee, if any, which shall contain a representation of compliance with the provisions of this Section, an explanation as to the nature of the Default, together with a description of Project Site No. 1, and by duly recording a copy of said notice in the Official Records. No such lien shall exist until such notice is duly served and recorded as provided herein. Notwithstanding the foregoing. if more than thirty (30) days are reasonably required for cure of a non -monetary Default. the Developer shall not be in Default hereunder if the Developer shall promptly (and in any event within thirty (3 0) days after receipt of notice under Section 20.2. 1) commence the cure of the Default and diligently prosecute the same to completion. 20 2.4 The priority, of any lien under this Section 20.2 shall be determined as of the date of filing the same in the Official Records; provided, however; any such lien shall nevertheless be subject and subordinate to the lien of any mortgage or trust deed now or hereafter affecting Project Site No. 1. Such lien shall continue until the obligation to pay such costs is fully Attachment No. 1-14 to Exhibit V DOCSOC/1706855v23/022363-0015 discharged, but in no event longer than five (5) years from the date of recordation, and may be foreclosed in accordance with the laws pertaining to foreclosure of mortgages without power of sale. 20 2.5 Such lien shall secure not only the amount stated in the aforesaid notice, but also the reasonable costs and expenses of enforcing the same, including interest and reasonable attorneys' fees. 20.2.6 In addition to the City's other remedies available under this Agreement, under the Law or in equity, in the event of a non -monetary Default by the Developer that is not cured within thirty (30) days after notice is provided to the Developer under Section 20.2. 1. the City may, at the City's option and following written notice to the Developer of such election, undertake the Developer's obligations to operate, maintain and manage the Parking Lots and in such event the City shall have the right to set Daily Parking Rates and receive and use all Parking Revenues for the purposes permitted in this Agreement. 20.3 Enforcement Procedures affainst Citv. 20.3.1 Prior to the exercise of any rights against the City, a notice must be sent to the City specifying the nature of the Default. 20.3.2 In the case of a monetary Default, if the Default is not cured within ten (10) days after notice to City under Section 20.3.1, the Developer may pursue any rights and remedies available to Developer at law or in equity. 20.3.3 In the case of a non -monetary Default. if the Default is not cured within thirty (30) days after notice to City under Section 20.3. L then the Developer may, in addition to its other rights and remedies at law or in equity. cure the Default on behalf and at the cost of City and pursue recovery of such amounts from the City. Notwithstanding the foregoing, if more than thirty (30) days are reasonably required for cure of a non -monetary Default, City shall not be in Default hereunder if City shall promptly (and in any event within thirty (30) days after receipt of notice under Section 20.3.1) commence the cure of the Default and diligently prosecute the same to completion. 20.4 No Termination Upon Default. Notwithstanding anything to the contran, set forth herein, no Default or violation under this Agreement shall entitle any Party to terminate this Agreement, but such limitation shall not affect, in any manner, any other right or remedy which any Party may have hereunder by reason of such Default. 21. Enforcement and Occupancy Tracking. 21.1 Enforcement Generally. The Developer shall take reasonable steps to enforce the terms of this Agreement and the Parking Rules. Without limiting the generality of the foregoing, at any time an access control system is not installed at each entrance to the Parking Lots. the Developer and/or its Parking Operator shall institute a program to ticket and/or tow parties that use the Parking Lots in violation of the terms of this Agreement or the Parking Rules. 11 21.2 Reserved. 21.3 Occupancy Tracking. In the event that the Parking Lots become overburdened, or the City or Developer determines in good faith that parking is being abused, the Attachment No. 1-15 to Exhibit V DOCSOM 706855v23/022363-0015 Developer shall track use and occupancy of the Parking Lots, including, without limitation: (a) the numbers of vehicle entries and vehicle exits: (b) the hour by hour utilization of parking spaces and monthly parking permits; (c) the number and dollar amount of all cash and validation transactions; (d) the source of validations issued; and (e) the average length of stays for validated and non - validated parkers. Using the foregoing data, the Parties shall meet and confer to discuss reasonable changes to this Agreement, provided that any changes shall be subject to the reasonable approval of both the City and Developer. 22. Notices. All notices hereunder must be in writing and, unless otherwise provided herein, shall be sent by registered or certified mail, postage prepaid, return receipt requested, overnight courier or telecopy and shall be deemed received upon the earlier of (i) if mailed, four (4) business days after the date of posting by the United States post office, (ii) if sent by overnight courier, upon receipt by the person to receive such notice, or (iii) if sent by telecopy, when sent. Any notice, request, demand. direction or other communication sent by telecopy must be confirmed within forty-eight (48) hours by letter mailed in accordance with the foregoing. Notices shall be addressed as follows (or to any other mailing address which the Party to be notified may designate to the other Party by such notice; should City or the Developer have a change of address, the other Party shall immediately be notified as provided in this Section of such change): To City: City of Anaheim 200 S. Anaheim Boulevard, 2nd Floor Anaheim, California 92805 Attention: Linda N. Andal, City Clerk Fax No. (714) 765-4105 With a copy to: City of Anaheim 201 S. Anaheim Boulevard, 10th Floor Anaheim. California 92805 Attention: John E. Woodhead IV, Community Development Director Fax No. (714) 765-4630 City of Anaheim 200 S. Anaheim Boulevard, 3rd Floor Anaheim, California 92805 Attention: Theodore J. Reynolds, Assistant City Attorney Fax No. (714) 765-5123 Stradling Yocca Carlson & Rauth 660 Newport Center Drive, Suite 1600 Newport Beach, California 92660 Attention: Thomas P. Clark, Jr., Special Counsel to City Fax No. (949) 823-5140 To Developer: Lab Holding, LLC 709 Randolph Avenue Costa Mesa, California 92626 Attention: Shaheen Sadeghi Attachment No. 1-16 to Exhibit V DOCSOC/1706855v23/022363-0015 with a copy to: Allen Matkins Leck Gamble Mallory & Natsis LLP 1900 Main Street. 5th Floor Irvine. California 92614 Attention: R. Michael Joyce 23. Miscellaneous Provisions. 23.1 Attorneys' Fees. City and the Developer agree that in the event of litigation to enforce this Agreement or terms, provisions and conditions contained herein, to terminate this Agreement, or to collect damages for a Default hereunder, the prevailing Party shall be entitled to all costs and expenses, including reasonable attorneys' fees, incurred in connection with such litigation. 23.2 Nondiscrimination. Developer agrees not to discriminate against any person or class of persons by reason of sex, color, race. creed, religion, marital status. handicap, ancestry or national origin in its activities hereunder. To the extent this Agreement provides that Developer offer accommodations or services to the public, such accommodations or services shall be offered by the Developer to the public on fair and reasonable terms. 23.3 Estoppel Certificate. Each Party shall, upon written request from any other Party. which request shall quote this Section, execute to the requesting Party a written statement in the form of Exhibit C attached hereto or such other reasonable form as may be proposed by the requesting Party (an "Estoppel Certificate") certifying (a) whether or not this Agreement is modified and whether or not this Agreement is in full force and effect (or, if there have been modifications, stating those modifications), (b) whether or not, to its actual knowledge. any Party has failed to perform an obligation under this Agreement. and if so, the nature of the failure, and (c) such other matters as may be reasonably requested by the requesting Party. No Party shall be obligated to respond to a request to execute an Estoppel Certificate that attempts to modify any of the terms or conditions of this Agreement. An Estoppel Certificate executed by any Party may be relied upon by a Party or anN7 transferee or Mortgagee of a Party to which such Estoppel Certificate is addressed so as to estop the party executing the Estoppel Certificate from asserting the contrary. If a Party requests an Estoppel Certificate in a form that varies materially from the form attached hereto as Exhibit C. the Party requesting such Estoppel Certificate shall reimburse the other Part), for any reasonable out-of-pocket costs and expenses, including without Iimitation attorneys' fees incurred in connection with the review and approval of such Estoppel Certificate. 23.4 Waiver. Inaction by City or Developer with respect to a Default hereunder shall not be deemed to be a waiver of such Default. The waiver by either City or Developer of any Default hereunder shall not be deemed to be a waiver of any subsequent Default. 23.5 Time of the Essence. Time is hereby expressly declared to be the essence of this Agreement and of each and every teen, covenant and condition hereof which relates to a date or a period of time. 23.6 Relationship of Parties. Nothing contained herein shall be deemed or construed by the Parties. nor by any third party, as creating the relationship of principal and agent or of partnership or of joint venture between the Parties, it being understood and agreed that the Developer shall not. in any way, be considered to be an officer. agent or employee of City. Attachment No. 1-17 to Exhibit V DOCSOC/17068 5v23/022363-001; 23.7 Remedies Cumulative. The remedies given to the City and the Developer herein shall be cumulative and are given without impairing any other rights given to the City or the Developer by statute or law now existing or hereafter enacted and the exercise of any one (1) remedy_ by the City or the Developer shall not exclude the exercise of any other remedy. 23.8 Effect of Invalidity,. If any term or provision of this Agreement or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder- of this Agreement, or the application of its terms and provisions to persons and circumstances other than those to which it has been held invalid or enforceable shall not be affected thereby. and each term and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law. 23.9 Successors and Assigns. This Agreement and the covenants and conditions contained herein shall be binding upon and inure to the benefit of and shall apply to the successors and assigns of the City and to the permitted successors and assigns of the Developer. and all references to "City" or "Developer" shall be deemed to refer to and include all permitted successors and assigns of such Party. 23.10 Entire Agreement. This Agreement and the exhibits hereto contain the entire agreement of the Parties with respect to the matters covered hereby, and no agreement, statement or promise made by any Party which is not contained herein. shall be valid or binding. No prior agreement, understanding or representation pertaining to any such matter shall be effective for any purpose. No provision of this Agreement may be amended. modified or added except by an agreement in writing signed by City and Developer. 23.11 Authoritv. Each individual executing this Agreement on behalf of a corporation, nonprofit corporation, partnership or other entity or organization, represents and warrants that he or she is duly authorized to execute and deliver this Agreement on behalf of such entitv or organization and that this Agreement is binding upon the same in accordance with its terms. Developer shall, at City's request. deliver a certified cope of its operating agreement and/or governing board's resolution or certificate authorizing or evidencing such execution. 23.12 Conflicts of Interest. No member, official or employee of City shall have any personal interest, direct or indirect. in this Agreement, nor shall any such member, official or employee participate in anv decision relating to this Agreement which affect his or her personal interests or the interests of any corporation, partnership or association in which he or she is directly or indirectly interested. 23.13 Non -Liability of Members. Officials. Agents and Employees of City. No member, official, agent or employee of City shall be personally liable to Developer, or any successor in interest. in the event of anv Default or breach by Citv or for_ any amount which may become due to Developer or Developer's successors. or on any obligation under the terms of this Agreement. Developer hereby waives and releases any claim it may have against the members, officers, employees or agents of City with respect to any Default or breach by City or for anv amount which may become due to Developer or its successors, or any obligations under the terms of this Agreement. Developer makes such release with the full knowledge of Civil Code Section 1542 and hereby waives any and all rights thereunder to the extent of this release, if such Section 1542 is applicable. Section 1542 of the Civil Code provides as follows: Attachment No. 1-18 to Exhibit V DOCS OC/ 1706855%,23/022363-001 "A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor." 23.14 Non -Liability of Officers. Directors. Shareholders. Partners, Agents and Employees of Developer. No officer, director; shareholder, partner, agent or employee of Developer shall be personally liable to City, or any successor in interest, in the event of any Default or breach by the Developer or for any amount which may become due to City or City's successors, or on any obligation under the terms of this Agreement. City hereby waives and releases any claim City may have against the officers, directors, shareholders, partners, employees or agents of the Developer with respect to any Default or breach by the Developer or for any amount which may become due to City or City's successors, or any obligations under the terms of this Agreement. The City makes such release with the full knowledge of Civil Code Section 1542 and hereby waives any and all rights thereunder to the extent of this release, if such Section 1542 is applicable. Section 1542 of the Civil Code provides as follows: "A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially_ affected his or her settlement with the debtor." 23.15 Controlling Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California. 23.16 Ca tp ions. The captions set forth herein are for convenience of reference only and shall not affect the interpretation of this Agreement or limit or amplify any of its terms or provisions. 23.17 Recordation of Easement. This Agreement may be recorded by any Party. Upon the termination of this Agreement, Developer shall provide City with a recordable quitclaim deed releasing all of the Developer's interest in the Parking Lots. 23.18 City Approvals and Actions. The Director shall have the authority to make approvals, issue interpretations, waive provisions, make and execute further agreements and/or enter into certain amendments of this Agreement on behalf of the City so long as such actions do not materially or substantially change the terms of this Agreement. --Signatures Next Page -- Attachment No. 1-19 to Exhibit V DOCSOC/1706855v23/022363-0015 In witness whereof, the Parties have executed this Agreement as of the respective dates set forth below. CITY: CITY OF ANAHEIM, a California municipal corporation and charter city Dated: . 20 Bv: ATTEST: LINDA N. ANDAL, CITY CLERK City Clerk APPROVED AS TO FORM: MICHAEL HOUSTON, CITY ATTORNEY Theodore J. Reynolds Assistant City Attorney STRADLING YOCCA CARLSON & RAUTH, Special Counsel to City Mayor DEVELOPER: LAB HOLDING LLC, a California limited liability company Dated: . 20 By: Its: Attachment No. 1-20 to Exhibit V DOCSOC/1706855v23/022363-0015 ACKNOWLEDGEMENTS 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 ss. COUNTY OF On before me. . Notary Public. personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose names(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 OF NOTARY PUBLIC Attachment No. 1-21 to Exhibit V DOCS001706855x23/022363-0015 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 before me, ss. Notary Public, personally appeared . who proved to me on the basis of satisfactory evidence to be the person(s) whose names(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 OF NOTARY PUBLIC Attachment No. 1-22 to Exhibit V DOCSOC/1706855v23/022363-0015 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 before me, ss. Notary Public, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose names(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 OF NOTARY PUBLIC Attachment No. 1-23 to Exhibit V DOCSOC/1706855v23/022363-0015 EXHIBIT A LEGAL DESCRIPTION OF PROJECT SITE NO. 1 PROJECT #1: PACKING DISTRICT PACKING HOUSE The real property referred to herein is situated in the County of Orange, City of Anaheim, State of California, and is described as follows: PARCEL 3 OF PARCEL MAP NO. 2011-116 RECORDED JUNE 3, 2014 AS INSTRUMENT NO. 201400215209 IN BOOK 379, PAGES 15-20 OF PARCEL MAPS IN OFFICIAL RECORDS OF SAID COUNTY. FARMERS PARK AND PACKARD BUILDING The real property referred to herein is situated in the County of Orange, City of Anaheim, State of California, and is described as follows: PARCELS 1 AND 2 OF PARCEL MAP NO. 2011-116 RECORDED JUNE 3, 2014 AS INSTRUMENT NO. 201400215209 INT BOOK 379, PAGES 15-20 OF PARCEL MAPS IN OFFICIAL RECORDS OF SAID COUNTY. MAKE BUILDING (500 S. ANAHEIM BOULEVARD) The real property referred to herein is situated in the County of Orange. City of Anaheim, State of California, and is described as follows: PARCEL 3 OF PARCEL MAP NO. 89-311, IN THE CITY OF ANTAHEIM, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS PER MAP FILED IN BOOK 260, PAGES 1 TO 4 INCLUSIVE OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPTING THEREFROM THAT PORTION CONVEYED TO THE CITY OF ANAHEIM IN GRANT DEED RECORDED MAY 02, 2006 AS INSTRUMENT NO. 200600029406 1. IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. ALSO EXCEPTING THEREFROM ALL OIL, MINERAL, GAS OR OTHER HYDROCARBON SUBSTANCES BELOW THE DEPTH OF 500 FEET, UNDER THE SURFACE OF SAID LAND, BUT WITHOUT THE RIGHT OF SURFACE ENTRY OR ANY OTHER USE OF THE LAND ABOVE SUCH 500 FOOT DEPTH. AS RESERVED IN DEED RECORDED MAY 05, 1989, AS INSTRUMENT NO. 89-238472 OF OFFICIAL RECORDS Attachment No. 1-24 to Exhibit V DOCSOC/1706855\-23/022363-0015 EXHIBIT R LEGAL DESCRIP'T'ION OF PARKING LOTS PARKING LOT 1 — (APN 037-023-09) The real property referred herein is situated in the County of Orange, City of Anaheim, State of California and is described as follows: PARCEL 4 OF PARCEL MAP NO. 2011-116 RECORDED JUNE 3, 2014 AS INSTRUMENT NO. 201400215209 IN BOOK 379, PAGES 15-20 OF PARCEL MAPS IN OFFICIAL RECORDS OF SAID COUNTY. PARKING LOT 2 — (PORTION OF APN 251-084-02) THAT PORTION OF VINEYARD LOT G-3, PER MAP FILED IN BOOK 4 PAGES 629 TO 630 OF DEEDS, MISCELLANEOUS RECORDS OF LOS ANGELES COUNTY, LYING SOUTHERLY OF A LINE PARALLEL WITH AND 81.00 FEET SOUTHERLY FROM THE SOUTHERLY LINE OF PARCEL 3 OF PARCEL MAP NO. 89-311 FILED IN' BOOK 260 PAGES 1 THROUGH 4, INCLUSIVE OF PARCEL MAPS OF ORANGE COUNTY, WESTERLY OF THE WESTERLY RIGHT OF WAY LINE OF CLAUDINA STREET, 60 FEET WIDE AS SHOWN ON SAID PARCEL MAP NO. 89-311, NORTHERLY OF TRACT NO. 497 FILED IN BOOK 17 PAGE 38 OF MISCELLANEOUS MAPS OF ORANGE COUNTY AND EASTERLY OF A LINE PARALLEL WITH AND 221.17 FEET EASTERLY FROM THE CENTERLINE ANAHEIM BOULEVARD AS SHOWN ON SAID TRACT NO. 497. PARKING LOT 3 (PORTION OF APN 251-081-23) That portion of the Vineyard Lot G-3, in the City of Anaheim, County of Orange, State of California, as shown on a map recorded in Book 4, Pages 629 and 630 od Deeds, in the office of the Recorder of Los Angeles County being more particularly described as follows: Commencing at the southwesterly corner of Parcel One of Parcel Map 92-252 as shown on a map recorded in Book 281 pages 20 and 21 of Parcel Maps in the office of the Recorder of said Orange County, said point being on the centerline of Claudina Street, South 15'29135 East, 174.68 feet from the intersection with the centerline of Santa Ana Street as shown on said Parcel Map 92-252; thence along the southerly line of said Parcel One North 74'30'00 East, 30.00 feet to the easterly line of said Claudina Street and the True Point Of Beginning; thence continuing along the southerly line of said Parcel One, North 74'30'00 East, 180.00 feet; thence leaving said southerly line of said Parcel One, South 15'29'35 East, 45.00 feet., thence South 74'30'00 West, 180.00 feet to the easterly line of said Claudina Street, thence along the easterly line of said Claudina Street, North 15'20'35' West, 45.00 feet to the True Point Of Beginning. Attachment No. 1-25 to Exhibit V DOCSOC/1706855v23/022363-0015 EXHIBIT C Attachment No. 1-26 to Exhibit V DOCSOC/1706855v23/022363-0015 SANTAAN p ` ' Project Site# 2 z -- a _ w _ _ a z LU ELLSWORTH '. .... .. .............. �Z . W W —k Project Site # 4 r. _ -.... r __ . .............. U .. -._. ' WATE U - ------ ---- ... - -------- G ----------- z -- - STUECKLE . - --- KL 3571–C—.–C" E_ hibl.. Attachment No. 1-26 to Exhibit V DOCSOC/1706855v23/022363-0015 EXHIBIT D ESTOPPEL. CERTIFICATE Re: Parking Easement Agreement dated as of . 2016 (the "Agreement") by and between the City of Anaheim, a California municipal corporation and charter city and municipal corporation (the "Cite"), and LAB Holdings, LLC, a California limited liability company (the "Developer"). The undersigned hereby represents, warrants and certifies as follows, recognizing that the addressee will rely on the information contained herein: 1. A true, correct, and complete copy of the Agreement is attached hereto. The Agreement is unmodified and in full force and effect, and has not been modified, supplemented, superseded, or amended in any way, either orally or in writing. All capitalized terms not otherwise defined herein shall have the meaning specified in the Agreement. 2. The term of the Agreement commenced on , 2016 and shall continue in perpetuity unless (a) the Agreement is terminated by mutual written agreement of the City and the Developer, (b) the Benefited Property is no longer used for the purposes described in Recital A of the Agreement (but only as to that part of the Benefited Property that is no longer being used, and subject to reasonable periods to repair, rebuild or restore the Benefited Property), or (c) the Agreement is otherwise terminated as provided in the Agreement. 4. All amounts required to be paid by the Developer to the City pursuant to the Agreement have been paid in full as of the date hereof, and the undersigned is not aware of any other outstanding payments owed by the Developer under the Agreement, except as follows: [If none, state "None"]. 5. To the best of the undersigned's actual knowledge, no Default or event that with the passage of time or notice would constitute a Default on the part of the City or the Developer has occurred under the Agreement, except as follows: [If none, state "None"]. 6. The representative of the undersigned signing this Estoppel Certificate is duly authorized and fully qualified to execute this instrument on behalf of the undersigned. --Signature Next Page -- Attachment No. 1-27 to Exhibit V DOCSOC/1706855v23/022363-0015 This Estoppel Certificate may be relied upon by the addressee, its lender and their respective successors and assignees. By: Name: Title: Attachment No. 1-28 to Exhibit V DOCSOC/1706855v23/022363-001 5 EXHIBIT 'W DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS RECORDING REQUESTED BY: WHEN RECORDED RETURN TO AND MAIL TAX STATEMENTS TO: City of Anaheim 200 South Anaheim Boulevard_ Second Floor Anaheimm, California 92805 Attn: City Manager (Space above for Recorder's Use.) This document is exempt from the payment of a recording fee pursuant to Government Code Section 27383. 0 DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS These Covenants, Conditions and Restrictions. herein sometimes referred to as these "CC&Rs" or "Declaration" or "Regulatory Agreement" are made by the signatories hereto. W-1 DOCSOC/1706855v23/022363-0015 RECITALS WHEREAS, each of the CITY OF ANAHEIM, a California municipal corporation and charter city ("City"), the CITY OF ANAHEIM, a municipal corporation ("City"), and LAB HOLDING, LLC, a California limited liability company ("Developer") is a parry to this Declaration. The City and the Developer are sometimes collectively referred to herein as the "Declarants". WHEREAS, The City and the Developer have entered into an unrecorded agreement entitled "Disposition and Development Agreement" dated as of , 2016 (the "DDA'') for the improvement and development of certain real property described in Attachment No. I hereto (the "Property"), which DDA provides for the recordation of this Regulatory Agreement. The DDA is incorporated herein by this reference and any capitalized term not defined herein shall have the meaning established therefor in the DDA. The DDA is on file with the City as a public record. Developer is owner of the Property. WHEREAS, this Regulatory Agreement establishes a plan for the improvement, development and maintenance of the Property for the benefit of the City. WHEREAS, it is contemplated under the DDA that, as of the recordation of this Regulatory Agreement, the Developer has acquired title to the Property-. The form of deed used for conveyance of the Property by the City to the Developer, as prescribed by the DDA, is referenced to as the "City Deed." WHEREAS, City, and Developer wish to employ this Regulatory Agreement to further govern the use of the Property in conjunction and along with the DDA and to ensure that the City achieves its objectives under the DDA. NOW, THEREFORE, the City and the Developer (as owner of real property interests described hereinabove), in the City, declares that the Property shall be held, transferred, encumbered, used, sold, conveyed, leased and occupied subject to the Covenants, Conditions and Restrictions hereinafter set forth expressly and exclusively for the use and benefit of said property, and the City. Each and all of the restrictions, limitations, conditions, covenants, liens, reservations and charges herein contained shall run with the land and be recorded on the property title and shall be binding on Declarants, their grantees, successors, heirs, executors, administrators, devisees or assigns, and all subsequent owners of all or any part of the Property. ARTICLE I DEFINITIONS The definitions provided herein shall be applicable to this Declaration and also to any amendment or supplemental Declaration (unless the context implicitly or explicitly shall prohibit), recorded against the Property pursuant to the provision of this Declaration. Section 1. "City" means the City of Anaheim and its successors in interest. Section 2. "Approved Project" means all improvements to the Property, including without limitation all improvements required to be developed by Developer under the DDA. All W-2 DOCSOC/1706855v23/022363-001 Improvements required to be accomplished by the Developer under the DDA must be completed in strict conformity with all specifications contained in or referred to in the DDA. Section 3. "Barn" means a business artist residence network, including office space, retail services and housing, as more particularly described in the DDA. Section 4. "Bums House and Orgeron Barrel Building" means a craftsman home on the Property with adjacent barrel-vaulted ceiling building, all as more fully described in the DDA. Section 5. "City" means and refers to the City of Anaheim, a municipal corporation. Section 6. "Cit", Code" means and refers to the City of Anaheim Municipal Code as revised from time to time. Section 7. "Common Areas" means all areas on the Property that are open or accessible to all tenants and other occupants of the Property (such as grounds.. but excluding buildings). Section 8. "Conforming Business Activities" means retail, office and residential uses excepting the following: adult uses-, coin operated laundry; governmental offices except with the C, prior written approval of the City: arcade; casino: card clubs. Section 9. "Desig"ated Facilities" means the Packing House, the Packard Building, the Farmers Park. the Greenhouse. the Farmhouse. MAKE. the HomeN/1ADE Project, the Barn.. the Bums House and Orgeron Barrel Building, and associated parking facilities and common areas. C7 C� Section 10. "Expiry Date" means October 1. 2065, excepting that those covenants contained in Sections 204.3.. 204.4. 307, 309. 401.1. 401 403.. and 603 of the DDA and the provisions of Sections 2 and 3 of Article 11 hereof shall remain in effect in perpetuity. Section 11. "Farmers Park" means an open-air area devoted to fanning, gardening and retail sales of food products as more particularly set forth in the DDA. Section 12. "Farmhouse" means a shed building that opens to Farmers Park. as more particularly described in the DDA. Section 13. "Greenhouse" means a glass greenhouse as more particularly described in the DDA. The Greenhouse is to be maintained on the Property following completion of the construction of the Greenhouse. Section 14. "Historic Features" means those features enumerated in Exhibit Q of the DDA. Section 15. "HomeMADE Project" means a mixed use project consisting of dwelling C7 units intended for live work use, as more particularly described in the DDA. Section 16. "MAKE" means a complex consisting of townhouse type apartments developed and maintained as live work units, all as more particularly described in the DDA. Section 17. "Packard Building" means that certain building commonly known by such name as situated on the Property, as more particularly described in the DDA. W-1 DOCSOC/1706855x,23/022363-0015 Section 18. "Packing House" means that certain building located on the Property which as of the recording of this Declaration is devoted to retail commercial use, as more particularly described in the DDA. Section 19. "Proiect Sites" means each of "Project Site No. F, "Project Site No. 2 "Project Site No. 3" and "Project Site No. 4" as each such provisions is defined in the DDA. Section 20. "Property" means all of the real property and appurtenances as described above, including all structures and other improvements thereon, and those hereafter constructed Section 21. "Regulatory Agreement" means this Regulatory Agreement and any amendments. modifications or supplements which may also be referred to herein as these "CC&Rs" or this "Declaration." Section 22. "Required Period" means the period commencing on the date this Regulatory Agreement is recorded and ending as of the Expiry Date. Section 23. "Surviving Covenants" means the covenants. obligations and promises of Developer as set forth in the DDA, including without limitation the covenants, obligations and promises set forth in Section 103, 103.2. 103.3. 103.4, 204, 204.3.204.4, 304 through 309, inclusive, 311.4. 312, 400. 401, 503, 603. 604. and 624. The Surviving Covenants shall run with the land and be binding upon heirs, successors and assigns of Developer. The covenants contained in Sections 103, 401 of the DDA shall remain in effect in accordance with their respective terms. The covenants contained in Sections 204.3, 204.4. 307, 309. 401.1. 402, 403, and 603 shall remain in effect in perpetuity. The covenants contained in Sections 304-306 and 503 shall remain in effect with respect to the Applicable Project Site until Developer. or its Transferee, has successfully completed the Applicable Developer Improvements. Notwithstanding the foregoing, in no event shall any Transferee be liable for any breach of or default by any owner or operator under the DDA with respect to any Surviving Covenants which occurs prior to the date on which such Transferee acquires title to the Property or following the date on which such Transferee transfers or relinquishes its title hereto. ARTICLE II LAND USE RESTRICTIONS; IMPROVEMENTS; OBSERVANCE OF COVENANTS; HISTORICAL FEATURES Section 1. Uses. The Developer shall develop the Approved Project on the Property in conformity with the DDA. Thereafter, the Property shall be operated as this Regulaton' Agreement and devoted only to the uses specified in the DDA and this Regulatory Agreement for the periods of time specified herein. All uses conducted on the Property, including, without limitation. all activities undertaken by the Developer pursuant to the DDA, shall conform to all applicable provisions of the City Code and City approvals of the Approved Project The Developer on behalf of itself and its successors. assigns.. and each successor in interest to the Property or any part thereof, hereby covenants and agrees: W-4 DOCSOC/1706855v23/022363-0015 (i) To use. devote. and maintain the Property and each part thereof, for the purposes and the uses specified in the Redevelopment Plan as in effect as of the effective date of the DDA. The Property shall comply with all provisions of the City Code. (ii) To maintain the improvements and landscaping on the Property, including all of the Designated Facilities. in conformity to all applicable laws and to keep the Property free from any accumulation of debris and waste materials. (iii) That Developer or its successors, assigns or transferee shall operate the Property with the Designated Facilities and conduct only Conforming Business Activities on the Property until the Expiry Date. The Developer covenants and agrees for itself. its successors, its assigns, and every successor in interest to the Property or any part thereof. that the Developer, and such successors and such assignees, shall, during the Required Period, devote the Property only to Conforming Business Activities. The Developer shall carry out all of its undertakings pursuant to this Regulatory Agreement in conformity with the Redevelopment Plan and all applicable laws. The Developer covenants that Developer or its successors or assigns shall operate on the Property only Conforming Business Activities for a period of not less than the Required Period; this covenant is made for the benefit of the City. There shall be no third party beneficiaries of this Agreement. The Property shall be used, maintained and operated in accordance with the DDA, the City Deed, and this Regulatory Agreement for the Required Period. The Developer shall observe and implement the Surviving Covenants on the Property for the Required Period. Section 2. Nondiscrimination. The Developer shall refrain from restricting the rental, sale or lease of the Property, or any portion thereof, on the basis of race, color, creed, religion, sex, marital status, national origin or ancestry of any person. All such deeds, leases or contracts shall contain or be subject to substantially the following nondiscrimination or nonsegregation clauses: (1) In deeds: "The grantee herein covenants by and for himself or herself, his or her heirs, executors, administrators, and assigns.. and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926. 12926.1, subdivision (in) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease. sublease, transfer, use, occupancy, tenure, or enjoyment of the premises herein conveyed, nor shall the grantee or any person claiming under or through him or her, establish or permit any practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of tenants, lessees. subtenants, sublessees, or vendees in the premises herein conveyed. The foregoing covenants shall run with the land." (2) In leases: "The lessee herein covenants by and for himself or herself. his or her heirs. executors, administrators, and assigns, and all persons claiming under or through him or her, and this lease is made and accepted upon and subject to the following conditions:: W-5 DOCSOC/1 706855N 23/022363-0015 "That there shall be no discrimination against or segregation of any person or group of persons, on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the leasing, subleasing, transferring, use, occupancy, tenure, or enjoyment of the premises herein leased nor shall the lessee himself or herself. or any person claiming under or through him or her, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy, of tenants, lessees, sublessees, subtenants, or vendees in the premises herein leased." (3) In contracts: "There shall be no discrimination against or segregation of. any person or group of persons on account of any basis listed in subdivision (a) or (d) of Section 12955 of the Government Code, as those bases are defined in Sections 12926, 12926.1, subdivision (m) and paragraph (1) of subdivision (p) of Section 12955, and Section 12955.2 of the Government Code, in the sale, lease. sublease, transfer, use, occupancy. tenure, or enjoyment of the premises which are the subject of this Agreement, nor shall the grantee or any person claiming segregation with reference to the selection. location, number, use or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the premises herein conveyed. The foregoing covenants shall run with the land." The covenants established in this Declaration and the deeds of conveyance for the Property shall, without regard to technical classification and designation, be binding for the benefit and in favor of the City, its successors and assigns, the City and any successor in interest to the Property, together with any property acquired by the Developer pursuant to this Agreement, or any part thereof. The covenants against discrimination as set forth in this Section 2 of Article II shall remain in effect in perpetuity. Section 3. Historic Features. As part of its duties under this Article II, the Developer shall maintain historic features to at the higher of the standards imposed under this Section 3 or as otherwise described for property maintenance in this Declaration. The standards imposed under this Section 3 as to Historic Features are as follows: (a) Packing House —Maintain and preserve the historical integrity and its Character Defining Features at the level of the highest of: (i) United States Secretary of the Interior's Standards for the Treatment of Historic Properties with Guidelines for Preserving, Rehabilitating, and Restoring Historic Buildings, (ii) standards for maintenance of historically significant buildings as established by the Office of Historic Preservation of the California Department of Parks and Recreations; (ii) State Historic Building Code; or (iv) the City of Anaheim "Citywide Historic Preservation Plan" dated May 18, 2010; (b) Packard Building — Maintain and preserve the historical integrity and its Character Defining Features at the level of the highest of: (i) United States Secretary of the Interior's Standards for the Treatment of Historic Properties with Guidelines for Preserving, Rehabilitating, and Restoring Historic Buildings; (ii) standards for maintenance of historically significant buildings as established by the Office of Historic Preservation of the California Department of Parks and Recreations; (iii) State Historic Building Code; and (iv) the City of Anaheim "Citywide Historic Preservation Plan" dated May 18, 2010; (c) Burns House — Restore, maintain and preserve the historical integrity and its Character Defining Features at the level of highest of: (i) United States Secretary of the Interior's Standards for the Treatment of Historic Properties with Guidelines for Preserving, Rehabilitating, and Restoring Historic Buildings; (ii) standards for maintenance of historically significant buildings as established by the Office of Historic Preservation of the California Department of Parks and Recreations: (iii) State Historic Building Code; and (iv) the City of Anaheim "Citywide Historic Preservation Plan" dated May 18. 2010; (d) 500 S. Anaheim Boulevard - Restore. maintain and preserve the historical W-6 DOCS 00 1706855x23/022363-0015 integrity at the level of the City of Anaheim "Citywide Historic Preservation Plan" dated May 18, 2010. and (e) Ensure Packing House remains on the National Register of Historic Places. Section 4. Compliance with Laws. The Developer shall comply with all applicable laws in connection with the development and use of the Property, including without limitation the California Community Redevelopment Lary (Health and Safety Code section 33000. et seq.). The Developer is a sophisticated party, with substantial experience in the acquisition, development, financing, obtaining financing for, marketing, and operation of a retail, residential and office project, with predominant retail use, and with the negotiation, review. and preparation of agreements and other documents in connection with such activities. The Developer is familiar with and has reviewed all laws and regulations pertaining to the acquisition, development and operation of the Approved Project and has obtained advice from any advisers of its own choosing in connection with this Agreement. ARTICLE III DUTIES OF DEVELOPER: SPECIFIC MAINTENANCE RESPONSIBILITIES Section 1. Exterior Building Maintenance. All exterior, painted surfaces shall be maintained at all times in a clean and presentable manner. free from chipping, cracking and defacing marks. Any such defacing marks shall be cleaned or removed within a reasonable period of time as set forth herein. Section 2. Front and Side Exteriors. The Developer shall at all times maintain the front exterior and yard in a clean, safe and presentable manner, free from defacing marks or any disrepair and any visible side exteriors. The Developer shall hire maintenance personnel to maintain and/or repair any front exterior or yard or visible side yard and exterior of any lot or building. Section 3. Graffiti Removal. All graffiti, and defacement of any type.. including marks, words and pictures must be removed and any necessary painting or repair completed by the later to occur of (1) seventy two (72) hours of their creation or (ii) seventy two (72) hours after notice to Developer. Section 4. Driveways. All driveways must be paved and maintained with impervious material in accordance with the City Code. In addition, all water must be made to drain freely to the public part of the waterway without any pooling. Section 5. Exterior Illumination. The Developer shall at all times maintain adequate lighting in all entrance ways and parking areas. Adequate lighting shall mean outdoor, night lighting designed and installed, which provides no less than one (1.0) foot candles in the parking areas and no less than one and one-half (1-1/2) foot candles in the walking areas or common areas and no less than 0.2 foot candles at the point of least illumination. Section 6. Trash Bins. All trash shall be collected and placed at all times in an enclosable bin to be placed in a designated refiise/trash bin area. The designated area shall be located so that the bin will.. to the extent possible, be readily accessible from the street. Section 7. Prohibited Signs. No sign of any kind shall be displayed to the public view on or from any portion of the Property without the approval of the City_ and appropriate City departments if any as required by the City Code. W-7 DOCSOC/1706855v23/022363-001 ARTICLE IV OBLIGATION TO MAINTAIN, REPAIR AND REBUILD Section 1. Maintenance by DeveloUer. The Developer shall, at its sole cost and expense, maintain and repair the Property and the improvements thereon keeping the same in a decent. safe and sanitary manner, and in good condition and making all repairs as they may be required by these CC&Rs and by all applicable City Code and Uniform Code provisions. The Developer shall also maintain the landscaping required to be planted in a healthy condition. If, at any time, Developer fails to maintain the Approved Project or any portion thereof, and said condition is not corrected after the expiration of forty-five (45) days from the date of written notice from the City, the City may perform the necessary maintenance and Developer shall pay such costs as are reasonably incurred for such maintenance. Payment shall be due within fifteen (15) days of receipt of an invoice from the Citv. Section 2. Damage and Destruction Affecting Propem, Developer's Dun, to Rebuild. If all or any portion of the Property and the improvements thereon is damaged or destroyed by fire or other casualt}7_ it shall be the duty of the Developer to rebuild. repair or reconstruct said portion of the Property and/or the improvements in a timely manner which will restore it to Code compliance condition. In furtherance of the requirements of this Section 2. Developer shall keep the construction on the Property insured by carriers at all times satisfactory to City against loss by fire and such other hazards. casualties, liabilities and contingencies as included within an all risk extended coverage hazard insurance policy, in an amount of the full replacement cost of the constructions. In the event of loss. Developer shall give prompt notice to the insurance carrier and to the Civy. If the Property_ is abandoned by the Developer.. or if Developer fails to respond to City within thirty (30) days from the date notice is mailed by City to Developer that the insurance carrier offers to settle a claim for insurance benefits, City is authorized to collect and apply the insurance proceeds at Cit\''s option either to restoration or repair of the Property. Section 3. Variance in Exterior Appearance and Design. In the event the Approved Project sustains substantial physical damage due to a casualt--' event, the Developer may apply to the City for approval to reconstruct, rebuild or repair in a manner which will provide different exterior appearance and lot design from that which existed prior to the date of the casualty. Section 4. Time Limitation. Upon damage to the Property or the Approved Project or other improvements. the Developer shall be obligated to proceed with all due diligence hereunder and commence reconstruction within four (4) months after the damage occurs and complete reconstruction within twelve (12) months after damage occurs or complete demolition and vacate within three (3) months, unless prevented by causes beyond Developer's reasonable control, in which event reconstruction shall be commenced at the earliest feasible time. ARTICLE V ENFORCEMENT Section 1. Remedies. Breach of the covenants contained in the Declaration mav_ be enjoined. abated or remedied by appropriate legal proceeding by the City. W-8 DOCSOC/1706855v23/022363-0015 This Declaration does not in anv wav infringe on the right or duties of the City to enforce any of the provisions of the City Code including, but not limited to, the abatement of dangerous buildings. Section 2. Nuisance. The result of every act or omission whereby any of the covenants contained in this Declaration are violated in whole or in part is hereby declared to be and constitutes a nuisance, and every remedy allowable at law or equity, against a nuisance, either public or private, shall be applicable against every such result and may be exercised by any owner or its successors in interest., without derogation of the City's rights under law. Section 3. Right of Entry. In addition to the above general rights of enforcement. the City shall have the right through its agents and employees, to enter upon any part of the Property for the purpose of enforcing the California Vehicle Code, and the ordinances and other regulations of the City. and for maintenance and/or repair of any or all publicly owned utilities. In addition. the Citv has the right of entry at reasonable hours and upon and after reasonable attempts to contact Developer, on any lot to effect emergency repairs or maintenance which the Developer has failed to perform. Subsequent to sixty (60) days written notice to the Developer specifically outlining the Developer's noncompliance, the City shall have the right of entry on the Property at reasonable hours to enforce compliance with this Declaration which the Developer has failed to perform. Section 4. Costs of Repair. The costs borne by the City of any such repairs or maintenance emergency and/or non -emergency. shall become a charge for which Developer shall be responsible. Section 5. Cumulative Remedies. The remedies herein provided for breach of the covenants contained in this Declaration shall be deemed cumulative, and none of such remedies shall be deemed exclusive. Section 6. Failure to Enforce. The failure to enforce any of the covenants contained in this Declaration shall not constitute a waiver of the right to enforce the same thereafter. Section 7. Enforcement and Nonliability. The City may from time to time make such efforts; if anv, as it shall deem appropriate enforce and/or assist in enforcing this Declaration. However, neither the City nor the City will be subject to any Liability for failure to affirmatively enforce any provision of this Declaration. W-9 DOCSOC/1706855v23/022363-001 ARTICLE VI GENERAL PROVISIONS Section 1. Covenant Against Partition: Covenant to Hold as Project Sites in Their Entirety. By acceptance of its interest in the Property. the Developer shall be deemed to covenant for itself and for its heirs, representatives, successors and assigns, that it will not institute legal proceedings or otherwise seek to effect partition of its right and interest in the interest being conveyed to the Developer, or the burdens running with the land as a result of this Regulatory Agreement. Developer shall maintain the Property as a separate unit; provided that Developer may divide the Property into the Project Sites (to be maintained in their entirety); thereafter, there shall be no further division of the Property except for sales of residential condominium units constructed as part of the Applicable Developer Improvements. Section 2. Severability. Invalidation of any one of these covenants or restrictions by judgment or court order shall in no way affect any other provisions which shall remain in all force and effect. Section 3. Term. This Declaration shall run with and bind the interest of the Developer in the Property, and shall inure to the owner(s) of any property subject to this Declaration, such owner's legal representatives, heirs, successors and assigns, and as provided in Article VI, Sections 3 and 4. This Declaration shall be enforceable each of the City and by the City, for a term equal to the Required Period.. provided; however, that the covenants regarding nondiscrimination set forth in Section 2 of Article II of this Declaration shall remain in effect (and shall be enforceable by the City) for perpetuity. Section 4. Limitation on Liability of Developer. If Developer sells or conveys its interests in the Property after completion of the Improvements and issuance of a Certificate of Completion, all terms and conditions of these CC&Rs shall remain in full force and effect, provided that upon conveyance of all of Developer's interests in the Property, Developer shall have no further liability under these CC&Rs for any violations thereof arising or occurring after such transfer of Developer's interests, but its transferees, buyers or conveyees shall be liable under these CC&Rs to the City'. Section 5. Construction. The provisions of this Declaration shall be construed to require the development of facilities for and operation of retail and/or office facilities in consideration of the DDA. Section 6. Amendments. This Declaration may be amended only by the written agreement of the Developer and the City. Section 7. Encroachments. None of the rights and obligations of the Developer created herein shall be altered in any way, by encroachments due to settlement or shifting of structures or any other cause. There shall be valid easements for the maintenance of said encroachments so long as they shall exist; provided, however, that in no event shall a valid easement for encroachment be created in favor of Developer if said encroachment occurs due to the willful conduct of said Developer. Section 8. Notices. Any notice permitted or required to be delivered as provided herein to Developer shall be in writing and may be delivered either personally or by certified mail. Notice W-10 DOCSOC/1706855v23/022363-0015 to the City shall be made by certified mail to the City Manager or his designee at 200 South Anaheim Boulevard, Second Floor, Anaheim, California 92805 (with a copy to Stradling Yocca Carlson & Rauth, Attention: Thomas P. Clark. Jr., Esq., 660 Newport Center Drive, Suite 1600, Newport Beach, California 92660), and shall be effective upon receipt. Notice to Developer shall be made by certified mail to Lab Holding, LLC, a California limited liability company. Attention: Shaheen Sadeghi, 709 Randolph Avenue, Costa Mesa. Caiifornia 92626, and shall be effective upon receipt. Such address may be changed from time to time by notice in writing. (signatures appear on following page) W-11 DOCSOC/1706855a23/022363-0015 ATTEST: City Clerk CITY OF ANAHEIM, a California municipal corporation and charter city Bv: City Manager LAB HOLDING, LLC, a California limited liability company By:_ Name: Title: W-1'' DOCSOC/1706855y23/022363-0015 ATTACHMENT NO. 1 LEGAL DESCRIPTION PROJECT #1: PACKING DISTRICT PACKING HOUSE The real property referred to herein is situated in the County of Orange, City of Anaheim, State of California, and is described as follows: PARCEL 3 OF PARCEL MAP NO. 2011-116 RECORDED JUNE 3, 2014 AS INSTRUMENT NO. 201400215209 IN BOOK 379, PAGES 15-20 OF PARCEL MAPS IN OFFICIAL RECORDS OF SAID COUNTY. FARMERS PARK AND PACKARD BUILDING The real property referred to herein is situated in the County of Orange, City of Anaheim, State of California, and is described as follows: PARCELS 1 AND 2 OF PARCEL MAP NO. 2011-116 RECORDED JUNE 3, 2014 AS INSTRUMENT NO. 201400215209 IN BOOK 379, PAGES 15-20 OF PARCEL MAPS IN OFFICIAL RECORDS OF SAID COUNTY. MAKE BUILDING (500 S. ANAHEIM BOULEVARD) The real property referred to herein is situated in the County of Orange. City of Anaheim, State of California, and is described as follows: PARCEL 3 OF PARCEL MAP NO. 89-311. IN THE CITY OF ANAHEIM, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS PER MAP FILED IN BOOK 260, PAGES I TO 4 INCLUSIVE OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPTING THEREFROM THAT PORTION CONVEYED TO THE CITY OF ANAHEIM IN GRANT DEED RECORDED MAY 02, 2006 AS INSTRUMENT NO. 2006000294061, INT THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. ALSO EXCEPTING THEREFROM ALL OIL, MINERAL, GAS OR OTHER HYDROCARBON SUBSTANCES BELOW THE DEPTH OF 500 FEET, UNDER THE SURFACE OF SAID LAND. BUT WITHOUT THE RIGHT OF SURFACE ENTRY OR ANY OTHER USE OF THE LAND ABOVE SUCH 500 FOOT DEPTH. AS RESERVED IN DEED RECORDED MAY 05, 1989, AS INSTRUMENT NO. 89-238472 OF OFFICIAL RECORDS PROJECT #2: HomeMADE LOTS 17 THROUGH 23 INCLUSIVE IN BLOCK M OF THE CENTER TRACT, AS PER MAP RECORDED IN BOOK 14, PAGE 13 OF MISCELLANEOUS RECORDS OF LOS ANGELES COUNTY, CALIFORNIA, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPT THEREFROM ALL OIL, MINERAL. GAS OR OTHER HYDROCARBON SUBSTANCES BELOW A DEPTH OF 500 FEET UNDER THE SURFACE OF SAID LAND, BUT WITHOUT THE RIGHT OF SURFACE ENTRY OR ANY OTHER USE OF THE LAND ABOVE SUCH 500 FOOT DEPTH, AS RESERVED IN DEED RECORDED MAY 05, 1989 AS INSTRUMENT NO. 89-238472, OFFICIAL RECORDS. APN: 037-024-11, and Attachment No. 1 to Exhibit W DOCSOC/1706855v23/022363-0015 THE NORTH 100 FEET OF LOTS 17 THROUGH 23. INCLUSIVE. IN BLOCK L OF THE CENTER TRACT AS PER MAP RECORDED IN BOOK 14. PAGE 13 OF MISCELLANEOUS RECORDS OF LOS ANGELES COUNTY, CALIFORNIA; IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. EXCEPTING THEREFROM MINERAL AND OTHER RIGHTS AS RESERVED BY SOUTHERN PACIFIC COMPANY IN DEED RECORDED DECEMBER 20, 1958, IN BOOK 4528, PAGE 251 OF OFFICIAL RECORDS. APN: 03 7-111-29. and THE SOUTH 35 FEET OF LOTS 17 THROUGH 23. INCLUSIVE, IN BLOCK L OF THE CENTER TRACT AS PER MAP RECORDED IN BOOK 14, PAGE 13 OF MISCELLANEOUS RECORDS OF LOS ANGELES COUNTY. CALIFORNIA. IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN: 037-111-30 Attachment No. 1 to Exhibit W DOCSOC/ 170685 5 % 23/022363-0015 PROJECT #3: BARN AIRSPACE PARCELS PARCEL A THATPORTION OF AIRSPACE PARCEL 1. I *: THE; CITY 01"ANAHEIM, COUNTY OF ORANCTE. ST XFE; OF CALIFORNIA AS PER PARCEL NIAP NO. 86-142. FILED IN BOOK 23-2, PAGES 15 THROI IGTI 19, I: CI.I `SIVT OF PARCEL AAPS. RECORDS OF SATT) CO€.CNTI'. DESCRIBED AS FOLLOWS: BE INNINf, ATTHF, ±OI'TTIF'.RT, T R.lIT\T'S OF TIIA7' CI?T:TATI COTIRSI? SIIOIt'1: AS =NORTH 14"34'40" WEST M9 ,,.`` FEE'i ON THE EASTERLY LINE OF SAID PARCEL 1. THENCE ALONG SAID EASTERLY LINT. NORTH 1 a"34-40" lt'ES'1' 40.00 FEET TO THE I`+ TERSI CTION WITH THE EASTERLY PROLONGATION OF THAT CERTAIN COURSE SIIOWN AS "N,75`'25'20'1 30.00' " ON T'HE NORTHERLY LINE OF I''ARCEL 11 OF SAID PARCEL MAP AND BEING THE TRUE POINT OF BEG NNING: THENCE SOUTHERLY ALONG SAID E ATERLY PROLONGATION AND SAID COURSE SOUTH 75 '25'20" WEST 45.99 FEET TO :1N ANGLE POINT IN SAID NORTHERLY LINE OF PARCEL 11: THENCE C'ONTINI'ING ALONG SAIDNORTHERLY LINE OF PARCEL 11 THE FOLLOWING EIGHT (5) COURSES - 1) NORTH 14-34"40" \PEST 63.00 FEET; 2) SOt`TH 75"25'21€ ' WEST 39.00 FEET: 3) SOUTH 1434'40" EAST5.00 FEET: 4) SOT'TH 75'25'20" WEST 33.00 FEET, 5) NORTH 14-34'40" 1VEST 5.00 FEET: 6) SOt'TH 75"2520- WEST 111.00 FEET: 7') SOTl-TH 14`34'40" EAST 5.00 FEET: S) SOUTH 75`25"20" WEST 10.75 FEET: THENCE LL AVI_NU SAID NORTHERLY LINE OF P;1RCE:L 11. NOR'ITI 14°:34'40NVE;ST 42.35 TO THE BEGINNING OF A NON -TANGENT CURVE CONCAVE NORT'HWEST'ERLY HAVING A RADIUS OF 275.60 FFFT_ SAID C€ T:t'I, l3I:ING CONCENTRIC tl'ITH 1ND 1.50 DEET SOL -THE STERLY OF THE GENERAL Pa ,e 1 of3t ti'r{;�g�y»� O.S"3°,i�,L�. ak,S-3013 AII;YIiRC�TS.ilncx Attachment No. I to Exhibit W DOCSOC/I 706855x23/022363-0015 '`ORTI-iF,RL.l" LT\F OP S.1II) P.iRC°El: . '. R 1I)I.1I. I:I\I' TO 5:11D F3EGI\\I�ItT I3Fk1RS SOUTH 33°00`23,. EAST: THENCE ALONG SAID CONCENTRIC CI'R-\'E NORTHEASTERLY 19.4 FEET THROUGH A CENTRAL .=11tiGLE OF 4-02'3S-'TO A LINE 117HICH IS PARALLEL. WITH :1\D 1.50 FEEET SOU"Il- FASTEI?IY FROM SAID £ii NI:R 11,'tiOlt`I'I-ERI,Y LINE OF PARCEL, L THF.\CF ALONG SAID PARLTY1, LINE. NORTIi 52`56'-50" EAST 88,94 FEETTO THE BEGINNING OF A NON-T:=1'NGENT Cl'RVE CONCAVE NORTHEASTERLY HAVING A. RADIUS OF 94100 FEET. SAID CURVE BEING CONCENTRIC 11'ITII AND 4.00 FEET SOUTHERLY FROM SAID GE\EI2.41L AOR.THERL`;' LI\E OF PARCEL. 1 HAVING A RADII'S OF 90.00 FEET. A RADIAL ALINF. TO SAID BEGr\TNING BEARS SOI-I'll 33-22'15-'WEST: TIIENCE EASTERLY ALONG SAID CONCENTRIC CL?R1'E 10.09 FEET THROUGI1 A CENTRAL _1NGLF 01' W08'53"TOA I INF WHICII IS R (DIAL TO SAID CtTRVI:: THENCE ALONG SAID RADI.3L LINE; NORT'I I 27'1_x'2 EAST` 2.50 FLETTO T'HE lll;(;INNIN('T OF A NO.N-I.,1N(rI�"\`'I'CI_?RVI,: C ONCA\'I�; ROR'IHEIZIN HAVING A RADIUS OF 91.50 FEET. SAID CURVE BEING C'ONTCE-. TRIC 1 rrIl AND 1.50 FEET SOU'llIERLY FRONI SAID GENL:RAL NORTILERLY LINE OF PARCEL 1 HAVING A R UNt'S OF 90.00 NEI',1. A IZADI lI_ LINE-_. TO SAID E3EGINNINCT BEARS S 27 13'22' WEST. THENCE EAST1AI N ANll N€)IZ F EIE; 1S'I E:IZI.I .1I,€}NG S:1I1) CONCFrN i-mc CtI2 V1; 150.50 FEET TIIROL`GIi A CENTRAL, ANGLE OF 94"14'31' TO SAID EASTERLY LIN£; OF PARCHI. L 1,111 NCE I'llA1'INCT S_1ID Gl�NERAL NOR"PIIFsItl .1` I,TNE. _LONG SAID 1 .--1STFRI.)' LINT. OF PARCEL, I_ SOUTH 14°'34'40" E: AS`1" 150.55 POINT OF BEGINNING. ELEVATION LI:'1IITS: THE: VERTICA1: LIMITS OF SMI) PARCH, HAVE, NO 1'PI'IEI2 OR LOWER E:LF,VATIO'ti LIIFITS. EWEPTING TH ERBEFROM ALL OF AIRSPACE: PARCELS 9 AND 10 PER SAID PARCEL MAP NO. 86-142. ('ONTANING 0.358ACRES. MORI:OIZ I,F,SS. Page 2 of'3 �E::rofappin S�':i�`Le�zI�C,3iti;aIhl�3tCELS.dc�c� Attachment No. 1 to Exhibit )A' DOCSOC/1706855v23/022363-0015 PARCEL B BEING ALL OF AIRSPACE PARCEL 9, IN THE CITY OF ANAHEIM, COUNTY OF ORANGE, STATE OF CALIFORNIA AS PER PARCEL MAP NO. 86-142, FILED IN BOOK 232, PAGES 15 THROUGH 19, INCLUSIVE OF PARCEL MAPS, RECORDS OF SAID COUNTY, CONTANING 0.091 ACRES MORE OR LESS. PARCEL C BEING ALL OF AIRSPACE PARCEL 10, Iii' THE CITY OF ANAHEIM, COUNTY OF ORANGE, STATE OF CALIFORNIA AS PER PARCEL MAP NO. 86-142, FILED IN BOOK 232, PAGES 15 THROUGH 19, INCLUSIVE OF PARCEL MAPS, RECORDS OF SAID COUNTY. CONTANING 0.053 ACRES MORE OR LESS. PARCEL D BEING ALL OF PARCEL 2, IN THE CITY OF ANAHEIM, COUNTY OF ORANGE, STATE OF CALIFORNIA AS PER PARCEL MAP NO. 94-110, FILED IN BOOK 296, PAGES 26 THROUGH 28, INCLUSIVE OF PARCEL MAPS, RECORDS OF SAID COUNTY. CONTANING 0.545 ACRES MORE OR LESS. ALL AS SHOWN ON THE SKETCH TO ACCOMPANY LEGAL DESCRIPTION ATTAHCED HERETO AND BY THIS REFERENCE MADE A PART HEREOF. DATED THIS 1�l DAY OF uciohc' 2015. KURT R. TROXELL, L. S. 7854 FUSCOE ENGINEERING. 873-013-0; Page 3 of 3 M:\Mappmg\873\13\Legals\873013 AIR PARCELS.dou: Attachment No. 1 to Exhibit W DOCSOC/I 706855N,23/022363-0015 AP2" K(JR- F;. T�oxE�� ,G CLEME10NE STREET (NEW) 60, (OLI5 0' 2C 40' 60' GRAPHIC SCALE, 1" = 60' RAT-'111CL-1 ]\JIA7- NO, 04-tJO — 36.5' � D] UNE TABLE 29' FA 2 PARCELS A, D, AND C ARE AIR RIGHTS NO. 1 BEARING li LENGTH GTH S7525'20*W W Lu cl) 0 < -PP PARCEL D .33.00' U I N5256'WT 1 PCL A < a0-545 I LL -0 AC, 03W AC. L2 ! N271 22"E 2.5V (RAD SEE SHEET 2 & 3 FOR VERTICAL CROSS-SECTION DETAILS 42.38 Noir- AIRSPACE BENEATH ELEVATION 150.50' FOR PARCELS B AND C AND ABOVE ELEV. 150.50' FOR THOSE PORTIONS OF SAID PARCELS DESIGNATED AS AIRSPACE AREA IS A PART OF PARCEL A. DATE; 6151'r-25,2075 A FUSCOE SKETCH TO ACCOMPANY LEQAL DESCRIP77ON SCALE, 1'-60' .12 Ills. 1 9 4 1 A I I a I IN G AIRSPACE PARCELS JN-- 87=301 167'"V- M—, soft 10P, WA-, CIW*-f. 92606 SHEET 1OF3 !ed 949.47A.196* - f- 9149A74.5315 - —A-- MR THE BARN AIR PARCFLS-OWC (12-15-15) Attachment No. I to Exhibit W DOCSOC/1706855v23/022363-0015 4 51434'40*E 5-00' PARCELS A, D, AND C ARE AIR RIGHTS S7525'20*W CURVE TABLE .33.00' _S�1'007 (RAW PCL A RADIUS LENGTH 03W AC. ARE LISTED BELOW. P.Q.B. 94.00' tFj NW3440'W 190.85' ESIGNATION AREA 0 VERTICAL LIMITS L AP�' LOWER ELEV. LIMIT = 15C.50 PCL C 4010,ty BENCHMARK, OM AC, 4 P.O.S. F, 2312 15 -1 LOWER ELEV. LIMIT = 150.50' �4 S7525'20'V 9'20'W ELEVA-flONS,ARE IN TERMS OF S1434'40'E 5,00' 48 99' THE CITY 0. ANAHEIM BENCHMARV NO, SA -26-83, ELEV=148.08 FT N1 A P �,Jl n 0:00, (1983 ADJ) PER PM 86-142 -9 Fd - 14 —2 N1434'40*W P-M.B. 232/15-19, 63.0V AM pff! tiS DAMGEC klr%Tr. 39.00' SEE SHEET 2 & 3 FOR VERTICAL CROSS-SECTION DETAILS 42.38 Noir- AIRSPACE BENEATH ELEVATION 150.50' FOR PARCELS B AND C AND ABOVE ELEV. 150.50' FOR THOSE PORTIONS OF SAID PARCELS DESIGNATED AS AIRSPACE AREA IS A PART OF PARCEL A. DATE; 6151'r-25,2075 A FUSCOE SKETCH TO ACCOMPANY LEQAL DESCRIP77ON SCALE, 1'-60' .12 Ills. 1 9 4 1 A I I a I IN G AIRSPACE PARCELS JN-- 87=301 167'"V- M—, soft 10P, WA-, CIW*-f. 92606 SHEET 1OF3 !ed 949.47A.196* - f- 9149A74.5315 - —A-- MR THE BARN AIR PARCFLS-OWC (12-15-15) Attachment No. I to Exhibit W DOCSOC/1706855v23/022363-0015 4 51434'40*E 5-00' PARCELS A, D, AND C ARE AIR RIGHTS S7525'20*W PARCELS AND HAVE VERTICAL AND .33.00' HORIZONTAL LIMITS, VERTICAL LIMITS ARE PCL A PER PW, 86-142 P.M.B. 232/15-19 AND 03W AC. ARE LISTED BELOW. N143440'W 5.00' ESIGNATION AREA 0 VERTICAL LIMITS L AP�' LOWER ELEV. LIMIT = 15C.50 A UPPER ELEV. LIMIT = 1&0�50' �50` --AA F, 2312 15 -1 LOWER ELEV. LIMIT = 150.50' �4 UPPER ELEV. LIMIT 163,75' S1434'40'E 5,00' NO ELEV. LIMITS '3 SEE SHEET 2 & 3 FOR VERTICAL CROSS-SECTION DETAILS 42.38 Noir- AIRSPACE BENEATH ELEVATION 150.50' FOR PARCELS B AND C AND ABOVE ELEV. 150.50' FOR THOSE PORTIONS OF SAID PARCELS DESIGNATED AS AIRSPACE AREA IS A PART OF PARCEL A. DATE; 6151'r-25,2075 A FUSCOE SKETCH TO ACCOMPANY LEQAL DESCRIP77ON SCALE, 1'-60' .12 Ills. 1 9 4 1 A I I a I IN G AIRSPACE PARCELS JN-- 87=301 167'"V- M—, soft 10P, WA-, CIW*-f. 92606 SHEET 1OF3 !ed 949.47A.196* - f- 9149A74.5315 - —A-- MR THE BARN AIR PARCFLS-OWC (12-15-15) Attachment No. I to Exhibit W DOCSOC/1706855v23/022363-0015 2C 401 60 80 100 HORIZONTAL DISTANCE (FT, SECTION A'—A' ELEV = 1i3a,5C' 190 190 _j Ll, ELEV = 180.50'- {PARurL 11) 180 (PARCE'L 11) a 10.25` 170 ELEV ELEV 163,75' 170 160 ELEV = 163.7E' 120.'C" VARIES PARCF- C 150 160 z J PAPA�B_ A ELEV 150.50' 140- MIEL" z > , P"R (PORL F'AiRCEEL 1) til VAVARIESPA 0 150 HORIZONTAL -DISTANCE (FT) z SECTION B'—S' 9 '—ELEV = 150.50' < 14. FAROEL A W I3[l pop (Fop�, PARCEEL -1) 2C 401 60 80 100 HORIZONTAL DISTANCE (FT, SECTION A'—A' DAM, SEPT 25,2015 FE SKETCH TO ACCOMPANY LEGAL DESCMPn0N SCALE; I' -W' USCO Co.. "- 87=1= I K 9: AIRSPACE PARCELS 16791.1 Y_ Y.—, Sft leu, lnm_� C."k—6.926" SHEET 20F2 W 949.47-4,1960 - 6- 949-A74-5,115 - -.6- FOR THE EARN AIR FlARCFL5.D%lC- (10—D1-15) Attachment No. I to Exhibit W DOCSOC/1706855v23/022363-0015 ELEV = 1i3a,5C' 190 _j Ll, 180 {PARurL 11) 170 ELEV ELEV 163,75' 160 20.5c" 120.'C" VARIES PARCF- C 150 2125'1 z J PAPA�B_ A ELEV 150.50' 140- z > , P"R (PORL F'AiRCEEL 1) til 0 20 40 60 so 100 HORIZONTAL -DISTANCE (FT) SECTION B'—S' DAM, SEPT 25,2015 FE SKETCH TO ACCOMPANY LEGAL DESCMPn0N SCALE; I' -W' USCO Co.. "- 87=1= I K 9: AIRSPACE PARCELS 16791.1 Y_ Y.—, Sft leu, lnm_� C."k—6.926" SHEET 20F2 W 949.47-4,1960 - 6- 949-A74-5,115 - -.6- FOR THE EARN AIR FlARCFL5.D%lC- (10—D1-15) Attachment No. I to Exhibit W DOCSOC/1706855v23/022363-0015 L- 0 L !90 ELEV = 180.50\ ; r _ 3.25 � v 180 14785 Mm icanaws, Suitr IOP, Irviw, Coiikmb 42606 LO C w L 17CI SHEET 3 OF 8 W 949.4Tt-1960 a (. 9x9.474.5775 0 ,rvrw.6uaeemn FOR THE BARN 6I 150 i o 140 PAP03— A i a 130 + iP rJFi C PARCEL 11 ELEV = 163.75' 20.50' PAROIEt. ELEV = 150.50' 20 40 60 8C 100 HOWOMTA" DISTANCE (FT) SECTION C'—C pq1� FUSCOE15 SKETCf ! TO AGCOINPANY LELiAL DESGi1PTiGiN �o SCALDATEE- SCl1i E I' -W' f e s I N[ C 11 1 0 G AIRSPACE PARCELS JN-- $731x1301 14785 Mm icanaws, Suitr IOP, Irviw, Coiikmb 42606 SHEET 3 OF 8 W 949.4Tt-1960 a (. 9x9.474.5775 0 ,rvrw.6uaeemn FOR THE BARN h9:\,MAPPING\873\13\L£GALS\873013 AR PARC£LS.DWO (10—OS-15) Attachment No. 1 to Exhibit W DOCSOC/1706855a23/022363-0015 PROJECT #4: BURNS & ORGERON PROPERTY BURNS LOT 33 OF TRACT NO. 212 IN THE CITY OF ANAHEIM. COUNTY OF ORANGE, STATE OF CALIFORNIA, AS PER MAP RECORDED IN BOOK 13 PAGE(S) 1 OF MISCELLANEOUS MAPS IN THE OFFICE OF THE COUNTY RECORDER OF ORANGE COUNTY, CALIFORNIA. APN: 251-071-24, and ORGERON BEGINNING AT THE SOUTHEAST CORNER OF VINEYARD LOT G-4. AS PER MAP THEREOF RECORDED IN BOOK 4, PAGE 630 OF DEEDS. RECORDS OF LOS ANGELES COUNTY, CALIFORNIA AND RUNNING THENCE WESTERLY ALONG THE SOUTH LINE OF SAID VINEYARD LOT 209 FEET: THENCE AT RIGHT ANGLES NORTHERLY PARALLEL WITH THE WESTERLY LINE OF SAID VINEYARD LOT, 126.69 FEET: THENCE AT RIGHT ANGLES EASTERLY PARALLEL WITH THE NORTHERLY LINE OF SAID VINEYARD LOT, 209 FEET MORE OR LESS. TO THE EASTERLY LINE OF SAID VINEYARD LOT, THENCE AT RIGHT ANGLES SOUTHERLY ALONG THE EASTERLY LINE OF SAID LOT, 126.69 FEET MORE OR LESS. TO THE SOUTHEAST CORNER OF SAID VINEYARD LOT AND THE POINT OF BEGINNING. EXCEPT THEREFROM THE EASTERLY 9 FEET. ALSO EXCEPT THE SOUTHERLY 21.75 FEET THEREOF CONVEYED TO THE CITY OF ANAHEIM, FOR WIDENING WEST WATER STREET BY DEED RECORDED APRIL 16, 1947, AS INSTRUMENT NO. 16282 IN BOOK 1521. PAGE 70 OF OFFICIAL RECORDS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID ORANGE COUNTY. APN: 251-071-23 Attachment No. 1 to Exhibit W DOCSOC/] 706855v23/022363-0015 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 personally appeared _ , before me, ss. (Print Name of Notary Public) , Notary Public, 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 signatures) 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 seat. Signature o otary Public OPTIONAL Though the data below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent reattachment of this form. CAPACITY CLAIMED BY SIGNER ❑ Individual ❑ Corporate Officer Title(s) Partner(s) ❑ Limited Attorney -In -Fact Trustee(s) Guardian/Conservator Other: Signer is representing: Name Of Person(s) Or Entity(ies) DOCSOC/1706855v'_3/022363-0015 ❑ General DESCRIPTION OF ATTACHED DOCUMENT Title Or Type Of Document Number Of Paaes Date Of Documents s) Other Than Named Above