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HomeMy WebLinkAboutC-2823(D) - Declaration of Special Land Use Restrictions, Right of First Refusal, Mortage Lien and Option to Repurchase (Development Agreement No. 4)92- 304757 ®" Add. *-Nh n Ratordsl Mail To; 1'M44;, fla- LD V Specs �'a this 11= for P.ecer? =r's OWEAPATION OF SPECIAL LAND USE RESTRICTIONS. RIGHT OF FIRST REFUSAL, MORTGAGE LIEN AND OPTION TO REPURCHASE n u Remote 01% 01 rWAMMM11` M. t0. C's THE IRVT%Z CWANT SSO Nwport Canter Drt" &90 KAY elm Cnn•. MM„ Newport beach. CA 92660 AIL 01B WftWd 0wwcO" l.'Yd7= 0A T. �p Q �R� N11116 Attention: leMIME= smi S ce s Specs �'a this 11= for P.ecer? =r's OWEAPATION OF SPECIAL LAND USE RESTRICTIONS. RIGHT OF FIRST REFUSAL, MORTGAGE LIEN AND OPTION TO REPURCHASE n u a C1 TABLE OF CONTENTS DECLARATION OF SPECIAL LAND 1199 RESTRICTIONS, RIGHT OF FIRST REFUSAL, HORIMCE LIEN AND DMON TO REPURCHASE ARTICLE 1. GENERAL PROVISIONS. . . . . . . . . . 1 1.1 Granter's Reprssantatiom and Warranties. . . . . . . 1 1.2 Statement of Dselarant's General Purposes. . . . . . . . 2 1.3 Definitions. 2 (a) 'Bonmfitted Property . . . . . . . . . . . . . . 2 (b) 'Center" . . . . . . . . . . . . . . . . . . . 2 (c) •Deelarani• . . . . . . . . . . . . . . 2 (d) 'E£fsctlw Date' . . . . . . . . . . . . . . . . . 2 (s) 'Final Map• . . . . . . . . . . . . . . . . . . . 2 (f) 'Granter• . . . . . . . . . . . . 2 (g) The -Gross Floor Area• . . . . . . . . . . . . . . 3 ARTICLE 2. SPECIFIC RESTRICTIONS . . . . . . . . . . . . . . . . . . . 3 2.1 Specific Facilities. . . . . . . . . . . . 3 (a) Improvement aM Continued Wee. . . . . . . . . . . 3 (b) Construction. . 3 (e) Coaglncce ut and Complatian. 3 (d) Graving. . . . . . . . . . 4 (e) Utilities, Streets and Public Imprevemsnts. . . . 4 (f) Landscaping. . . . . . . . . . . . . . 4 (9) Alterations AM Additions . . . . . . . . . . . 4 2.2 beclarant's Approvals. . . . . . . . . . . . . . . . 4 (a) Approvals Required. . . . . . . . . . . . . . . 4 (b) Tim for Approvals . . . . . . . . . . . . . . . . 4 (c) Am Built Plane . . . . . . . . . . . . . . . . . . 5 .. 2.3 Grantee's Cost. . . . . . . . . . . . . . 5 2:4,,Fulfillwnc of Map Conditions . . . . . . .. . . . . . 5 2.5 Compliance. VLAh_ Law . . .... . . . . . . . . . . . 5 (a) Grantee to damply. -. . . . . . . . 5 (b) Approvals of Applications . . . . . . . . . . . . . 5 2.6 Bonds. . . . . . . . . . . . . . . . . . . . . . 6 2.7 Transfers. . . . . . . . . . . . . . 6 (a) Transfers Prohibited . . . . . . . . . . . . . 6 (b) Permitted Transform. 6 2.8 Suberdinstion or Cement to Transfer for Public Financing. . . . . . . . . . . . . . 6 (a) Copy of Lean Documents . . . . . . . . . . . . . . 7 (b) Title Report. . . . . . . . . . . . . . 7 (e) Disbursement Instruction,. . . . . . . . 7 (d) Request for Moties of Default. . . . . . . . . . . 7 2.9 Coats of Regfonsl Dewlopwnt. . . . . . . . . 7 2.10 MacArthur BomlWard Dedication and Maintemnee. . . . . 7 ARTICLE 3. GENERAL RESTRICTIONS. . . . . . . . . . . . ... . . . 8 3.1 Unspproved Developwat or Use. . . . . . . . . . . . 8 3.2 General Maintenance. . . . . . . . . . . . . . . . B 3.3 Restoration . . . . . . . . . . . . . . . . . . B 3.4 Drainage . . . . . . . . . . . . . . . . . . . . . . R 3.5 Signs . . . . . . . . . . . B 3.6 Prohibited Operations and Uses. . . . . . . . . . . . . B 3.7 No Subdivlsion . . . . . . . . . . . . . 9 3.6 zoning. . . . . . ... . . . . . . . . . . . . . . . . 9 3.9 Indemnity . . . . . . . . . . . . . . . . . . . . 10 ARTICLE 4. DECLARANF'S RIGHT OF FIRST REFUSAL . . . . . . . . . . . . . 10 ARTICLE S. REMEDIES. . . . . . . . . . . . . . 11 5.1 Default and General Remediem . . . . . . . . . . . . . . 11 (e) Damages . . . . . . . . . . . . . . . . . . . . . . 11 (b) Equity . . . . . . . . . . . . . . . . . . . . . . 11 5.2 -Inspection. . . . . . . . . . . . . . 11 5.3 Option to Repurchase the Land . . . . . . . . . . . . . 11 (a) Grant of Option. ll (b) Exercise of Repurchase Option. . . . . . . . . . . 12 (c) Expiration and Quitclaim. . . . . . . . . . . . . 12 n U ry i ii I n U i (d) Repurchase Price . . . . . . . . . . . . . . . . . 12 (e) Repurchase 6scr Terms . . . . . . . . . . . . . . 13 (f) Irrevocability. . . . . . . . . 13 And Warranties. Plans s specification. . . . . . . 13 5.4 Arbitration Procedure . . . . . . . . . . . . . . . . . . 14 5.5 Waiver. . . . . . . . . . . . . . . . . . . . . . 14 5.6 Costs of Enforcement . . . . . . . . . . . . . . . . . . 15 5.7 )tights of Landers . . . . . . . . . . . . . . . . . . . . 13 5.8 Advances . . . . . . . . . . . . . . . . . . . . . . . . 15 ARTICLE 6. CENRAl PROVISIONS . . . . . . . . . . . . . . . . . . . . . 15 6.1 Unavoidable Delay . . . . . . . . . . . . . . . . 33 6.2 Continuous Operations . . . . . . . . . . . . 16 6.3 Covawncs to Run With the Land: Teri. . . . . . . . . . 16 (a) Covenants to Run With the IaM. 16 (b) Tort. . . . . . . . . . 16 6.4 Assignment by Declarant. . . . . . . . . . . . . . . . . 16 6.5 Aaeoments . . . . . . . . . . . . . . . . . . . . . . . 16 6.6 Release. . . . . . . . . . . 16 (a) Release by Declarant. . . . . . . . . . . . . 16 (b) Net Applicable to Declarant. . . . . . . . 16 6.7 Notice. . . . . . . . . . . . . . . . . . . . 17 6.8 Governing 1". . . . . . . . . . . . . . . . 17 6.9 Sevarsbility. . . . . . . . . . . . . . . . . . . 17 6.10 Captions. . . . . . . . . . . . . . . . . . . . . 17 6.11 Entire Agreetent . . . . . . . . . . . . . . . . . . . . 17 6.12 Gantlet sM *usher, . . . . . . . . . 17 6.13 Tits of the 8saence . . . . . . . . . . . . . . . . . . 17 ii I n U i I, . �1 ' _.: t. 0 DECLARATION OF SPECIAL LAND USE RESTRICTIONS, RIGHT OF FIRST REFUSAL, MORTGAGE LIEU AND OPTION TO REPURCHASE n THIS DECLARATION ('lleclaration') is made as of March 11, 1992, by And between THE IRVINE COMPANY, a Michigan corporation ('Daelarante), and the CITY OF NEWPORT BEACH, a California municipal corporation ('Crantaa'), with reference to the following facts: A. Grantee and Deelarant have entered into an Exchange Agreement and �a Escrow Instructions (the -I t hangs Agreement') by which Crtmtae is acquiring from, I Declarant the following described real property (the eRUhange tand•) situated in the City of Newport leech, County of Orange. State of California: The southwesterly one -half of Parcel 2 as shown on Parcel Map No. 90 -361, recorded in Beek 270 , pages 15 to 1E , lnelusive, of Parcel Maps, Records of aid Cwmty. B. Grantee and Declarant have also entered into a Transfer Agreement and Escrow 2nstructions by which Grantee is acquiring from Declarant real property I adjacent to and contiguaus with the Exchange land which real property 12 situated in the City of Newport leach, County of Orange. State of California (-Transfer Lend-) and is described ea follows: The northeasterly one -half of Parcel 2 as shown an Parcel Map No. 90.361, retarded in look 270, Pages 15 to IS , inclusive, of Parcel Maps. Records of said County. C. In connection with such acquisition, Creston has represented to Declarant that it has acquired the Exchange Land and the Transfer Land as a single parcel described as all of Parcel 2 as shown on aide Parcel Map No. 90 -361 (the -Land-) to improve and -use, Land In accordance with the covenants, conditions, rights, restrictions and lisitacims as particularly met forth berein (collectively referred to as the 'Restrictions'), and Declarant is granting the Land to Grantee on the basis of Grantee's continuing compliance with such Restrictions. NOW, THEREFORE, in consideration of the foregoing (including the eemeyance of the land by Declarant to Grantee), and other good and wluable consideration, the receipt and adequacy of which are hereby aelmwledged, the parties hereto agree as follows: ARTICIZ 1, GENERAL PROVISIONS. 1.1 6rm,t +e's Representations and Warranties. GRANTEE REPRESENTS AND WARRANTS TO DECLARANT THAT GRANTEE IS ACQUIRING THE LAND TO IMPROVE THE SANE IN COMPLIANCE WITH THE RESTRICTIONS SET FORTH HEREIN AND FOR THE PARTICULAR USES AND PURPOSES AUTHORIZED HEREBY. GRANTEE ACKNOWLEDGES. AMONG OTHER THINGS, THAT: (a) GRANTEE IS EXPERIENCED AND KNOWLEDGEABLE IN THE CONSTRUCTION AND OPERATION OF PUBLIC FACILITIES, AND DECIAIUNT AND GRANTEE DESIRE TO PROVIDE A PUBLIC LIBRARY TO SERVE NEWPORT BRACH; (b) DECARANI HAS CONVEYED AND GRANTEE LAS ACCEPTED FEE TITLE TO THE LAND FOR USE BY GRANTEE IN ACCORDANCE WITH THE PARTICULAR USES PROVIDED FOR IN THIS DECLARATION; (c) DECLARANT AND GRANTEE DO NUT EXPECT OR INTEND THE LAND TO BE USED AT ANY TIME FOR ANY PURPOSE HOT OTHERWISE PERMITTED HEREIN; (d) THE LIKELIHOOD THAT ANY BREACH WILL OCCUR AND THAT DECLARANT WILL EXERCISE ANY OF ITS RIGHTS A11411ABLE TO REEDY ANY BREACH OR NONCONFORMITY WITH THE RESTRICTIONS CONTAINED HEREIN IS EXTREMELY REMOTE (e) WITHOUT THE RESTRICTIONS CONTAINED HEREIN, THE PURPOSES AND EXPECTATIONS OF DECIARANT IN THE DEVELOPMENT OF NEWPORT CENTER AND USE OF THE LAND COULD BE DEFEATED; (f) BUT FOR CONVEYANCE OF IKE LAND. GRANTEE WOULD BE REQUIRED TO PAY SUBSTANTIAL SUMS TO ACQUIRE LAND FOR ITS USES; (S) DECLARANT AND GRANTEE HAVE ESTABLISHED THE FAIR MARKET VALUE OF THE LAND FOR PURPOSES OF THE OPTION TO REPURCHASE BASED UPON PRESENT ESTIMATES AND HAVE APPLIED RDJUSTHR7r FACTORS TO TAKE INTO ACCOUNT SUBSEQUENT CHANGES IN VALUES; (h) DECLARANT AND GRANTEE ACKNOVIEOGE THAT HARM FORCES COULD MAKE THE PRICE FOR REPURCHASE GREATER OR LESSER THAN THE VALUE ESTABLISHED FOR PURPOSES OF THE OPTION TO REPURCHASE AND HEREBY ASSUME THAT RISK. RUT FOR SUCK REPRESEITIATIONS BY GBAWM. AND GRANTEE'S UNIQUE SKILLS, EEPERTISE AND SUITABILITY IN OMMMUCTION AND OPERATION OF THE SPECIFIC FACILITIES DESCRIBED BELOW. DECLARANT WOUIJ) NOT HAVE CONVEYED THE LAND TO CiARM. BUT UOUTA HAVE RETAIM THE BENEFITS OF OWNERSHIP, INCLUDING VU URE APPRECIATION OF THE LAND, ON THE BASIS OF SUCH REPRESENTATIONS AND VARRANTIEI. DRCLAEAYT HAS CONVEYED THE LAND TO GRAN TEE. 1,2 Statement of Daelarant'A General Furmeass. Declarant to the ewmer of a large and unique landholding, part of which bas ben developed as a waster planned business, recreational, hotel, residential and retail Center, described below, in the City of Newport beach (the -City"). Among the distinguishing characteristics of this masterplanned Center are the clear dalineetion of use areas throughout the center, together with the strict examine of architectural and occupancy controls over Individual construction projects, so as to ensure the harmonious grevch and development of the Center and the maximization of the value of Declarant'• developed and undeveloped 'landholdings u wll as the Lnd itself. In addition to those general concerns, It is vitally Important to Declaranc' that the intensity of development shall be limited on those parcels of property (including the land) that Declarant from time to time elects to convey to third parties. Should the development limitations imposed by Declarant be exceeded, the roadways and the infrastructure Improvements aetvieing the Center and its environs Could be overutllized, resulting In undesirable traffic congestion and Imbalances within the Canter. Such conditions could in turn adversely affect the ability of Declarant to develop, own, operate, lease or sell I" landownings, including without limitation the 'benefltted Property• as defined below. It is to promote these purposes that this Declaration is ends, and it is the intencivn of the parties that it will be in furtherance of said purposes that the Restrictions, and all other declarations supplemental hereto, will be understood and construed. 1.7 Definitions— As used herein, the following terms shall have the meanings given to them below; (a) 'Benefitted Property' shall mean the real property to which the benefit of the pronlitens of this Declaration inures, and as of the excretion of this Declaration sball mean the real property described on EXHIBIT 1 attached hereto. Declarant shall have the right by a duly recorded amendment hereto executed solely by Declarant to substitute for or add cc the Benefitted Property any real property owned by Declarant in the County of Orange, California. The benefitted Property shall be the dominant tenement and the Lead shall be the servient tenement for purposes of this Declaration. (b) 'Center' shall mean the office, hotel, recreational, retail and residential and other use area commonly known as Newport Center (including the shopping center known as Fashion Island) and generally lying within the are. enclosed by Pacific Coast Highway, MacArthur Boulevard, San Joaquin Hills Road and Jamboree Road. (c) 'Declarant' shall wan The Irvine Company as Identified above and Its successors, assigns or designees who shall assume the obligation and to when The Irvine Company shall specifically assign in writing the right to enforce these Restrictions, subject to the provisions of the Section entitled •Assignsent by Declarant.' (d) 'Effectiva Date' of this Declaration shall be the date Chia Declaration is recorded In the Official Records of Orange County. California. (e) 'Final Hap' shall swan :be final map covering the Iand described as Parcel Hap No. 90.161 as shown on a ary recorded in Book 270 , pages lif 15 to 18 , Inclusive, of Parcel Maps, Records of Orange County, Caornia.. (f) 'Grantee' shall mean the Crantee identified above and each and every successor, assignee, owner, lessee, licenswe or other occupant of the Land, the Specific facilities, as defined below. or any portion thereof or Interest therein, and each of them, during their ownership or occupancy thereof. !n V f However. such taro shall not Include any person having an Interest in all or any portion of the land or Specific Facilities merely as security for the performer, of An obligation. Without limiting the generality of the foregoing, if Crantn luau all or any of its interest in the Land or the Specific Facilities, both the lessor and lasses under such less, shall be responsible u principals (and net sureties) for compliance with all the terms and provisions of this Declaration. (g) The 'Cross Floor Arose shall ran the aggregate mbar of square feat of floor space on all floor levels of any building, including mezzanine,, measured from the Interior face of all exterior wells. No deductions or exclusions shall be mad* by mason of columns, stairs, elevators, escalators, or other interior construction or aqulprnc. ARTICLE 2. SPECIFIC RESTRICTIONS. 2.1 Specific Facilities. (a) Improvement and Continued Use. Grantee represents and agrees that Grantee shall uasa the land to be Improved only with the specific facilities described on EXHIBIT 1 attached hereto (the 'Specific Facilities-) and the ocher improvements described on EXHIBIT 2 attached hereto (the *Other Improvements•) and in full mecordanee with all of the tarn of this Declaration, and that Grantee shall cause the land, the Specific Facilities and the Other Improvements to be used solely for a public library with related parking and on other use, notwithstanding that ether uses may be permitted under applicable zoning ordinances, and in full accordance with all of the terms of this Declaration. Use as a public library may include all uses and activities tosaennly associated with public libraries now and in the future Including any fem of information storage and retrieval such as video tapea, books, optical and magnetic disks or other technologies for Information storage and retrieval. Grantee may charge fees, rentals and late charges for loan or use of information media provided that fees, rentals and charges do not exceed the cost of operation ef'the public library fatilicy. No portion of the Land, or any improvements thereon, or an`y' portion thereof, shall be used for retail,- eammorcial, queal- retail or quasi-commercial - taeflities that - materially compete with the retail and coemercial facilities in the Center or otherwise improved, developed. wed, operated or maintained with any facilities or for any purpose whatsoever except as set forth above unless expressly approved by Declarant, which approval may be granted or withheld by Declarant In its sole discretion. (b) Construction. Grantee shall improve the Land with the construction and installation of the Specific Facilities and the Other Improvements pursuant to the 'plans and specifications approved by Declarant pursuant to the Exchange Agreement and the Transfer Agreement. If Grantee desires to make any substantial alterations, modifications, additions or changes to the exterior elements of any plans and specifications previously approved by Declarant, then Grantee shall submit three copies of any Change Order to Declarant for its approval prior to obtaining approval of such Change Order by the governmental entity having jurisdiction and prior to incorporating such Change Order in the work. Declarant shall approve or disapprove such Change Order In accordant. with the standards and procedures eat forth in Section 2.2. Construction and installation shall be commenced and completed within the time periods set forth in the Section below entitled -Commencement and Completion.• (c) Co®encement and Completion. Subject to extensions of time for unavoidable delays es provided under the provision entitled "Unsvoidable� Delay," (1) within the time period specified on EXHIBIT 2 as the •Cosneement -�_ Date,• sassured from and after the Effective Date of this Declaration. Grantee shall have commenced construction of the Specific Facilities on the Land, and (it) within the time specified on EXHIBIT 2 as the 'Completion Data,- measured from and after the Effective Date of this Declaration, Crantea shall have completed construction of the Specific Facilities on the land in a man ar consistent with plans and specifications apprmad in writing by Declarant pursuant to the Agreement. As used herein, the term "commenced construction• shall mean the completion of substantial grading of the land and the pouring of all or a substantial portion of all of the footings and foundations for the entire Specific Fac l l itfes (which need not necessarily include the ground floor slabs). Grantee shall be deemed to have *completed construction' of the Specific Facilities only at such time as Grantee shall have obtained from the appropriate n U few governmental entity or agency a valid Certificate of Use and Occupancy for the Specific Facilities. Grantee shall ceasnce and complete construction of the Other Improvements prier to or eentempo- "Ously with much Specific Facilities. (d) Czoln, prior to the commencement of any grading or ^ similar work an the (and, Grant" shall submit to Declarant for its approval two / g meta of plane and specifications for grading, terracing and filling of the )and U and for construction of other similar improvements tn, on or about the LAM. (e) Utilities, Streets and Public lanrovements. 11 I (I) Grantee shall cause all necessary facilities for water, drainage. savage. telephone, electricity, cable televisi ", and other utility service for the Land to be constructed and Installed there" and thereto in the manner and within the rise required by the Exchange Agreement. (it) In addition to any such facilities constituting a part of the Specific Facilities or the Other Improvements, Grantee shall construct and Install or pay for construction and installation of all struts,, strut lights, driveways, curb cuts, worry ways, sidewalks and the like, perimeter walls and femme, irrigation and drainage systems, landscaping, monument, directional or other sips and all Ilk* improvements on the Land or between the land and adjoining sidewalks or the curbs of adjoining streets, as required by the Exchange Agreement. (f) Landscaping. In addition to the landscaping constituting a part of the Other Improvements, if any. Grantee shall landscape the land " necessary to create a first class attractive condition, and in a manner consistent with the existing landscaping in the Center. Grantee shall submit to Declarant for its approval two sets of plus and specifications for the landscaping on the Lana. -- (g) Alterations and Additions. Grantee shall our sake any substantial- ad¢itiens, alterations or other modifications .(;alterations') of or to the exterior of the Specific Facilities or any additions, altarations or other modifications to the visible portions of the Other Improvements or other improvements free time to time located on the Land, without the Eric- written approval of Declarant. Daclarant shall approve or disapprove of such alterations in accordance with the standards and procedures set forth in Section 2.2. All such alterations shall be subject to the provisions of Article 2 hereof. If Grantee desires to add additional structures to the Land other then those specified in MISIT 2, than Declarant my impose additional restrictions, covenants and obligations " a condition to its approval. AS used in this Section, the •excerior• of the Specific Facilities shall scan all reefs, outside .ells -and facades, structural foundation, entrance doors, windows, outside walkways, ramps and other accesways, and parking facilities, 2.2 Declarmt'a Averevals. (a) Approvals Reouired. Except with respect to plain and specifications approved prior to the recordation of this Declaration, no construction, installation or alteration of the Specific Facilities, the Other Improvements, or any other landscaping, grading or other improvements in, about or on the Land shall be commenced unless the concept, plans and specifications for the exterior elements of such improvements have first received the Kitten approval of Declarant exercising Its sole and absolute discretion. The improvements constructed shall comply with the plans and specifications approved by Declarant pursuant to the Agreement or this Declaration. Crantae agrees that the Specific Facilities, the Other Improvements and all other landscaping and improvements on the Land shell be designed, constructed and installed to provide for a library with complementary landscaping and surrounding improvements which, in the sole discretion of Declarant, are in harmony with the plan and design of the Center. (b) Time for eerw•1s. Declarant skull approve or disapprove any plane and specifications delivered to Declarant pursuant to this Article as soon as pemeibla but no longer than thirty (20) working days after receipt of me copies thereof accompanied by such drawings, site plans, elevations, artists' conceptions, samples of materials, models, mock-ups, and color samples as from ties to time required by Declarant to revlew such plans and specifications. If approved by Declarant, such approval shall be endorsed an such plans and specifications and ova sat of such documents baring Declarant-s approval @hall be returned to Grantee within such thirty (30) working day period. if Declarant ' does not approve such plate and specifications. Declarant *hall notify Grantee of Its reasons for not approving such plane and specifications and Grantee shall, within forty five (0) working dye after receiving notice of Deelarsnt's disapproval, submit taw place and specifications for Declarant•@ approval. 1 / Failure of Welarmt to approve or disapprove any plane and specifications within V said thirty (30) working day period and DecLarant•a continued failure to approve or disapprove for fin (5) working days after Grano'* written notice to Declarant that Declarant has failed to approve or disapprove as required herein shall ba Waned approval thereof, the approval by Declarant of any plane and specifications pursuant to this Section shall only represent Desistance' i satisfaction with the plane MA specifications as to their general *esthetic elements. Such approval shall net be deemed to constitute any representation or I warranty by Declarant as to the adequacy or sufficiency of such plats and specifications for arehteeetural or engineering design or the feasibility or eme integrity of any grading, landscaping, improvement or construction contemplated thereby for any sae or purpose. By approving such place and specifications. Declarant paume• re liability or responsibility therefor or for any dafect in any grading, landscaping, improvements or construction made pursuant thereto. (t) As Built Plans. Upon completion of the grading, ' I&Macaping and construction of improvements. Grantee shall submit to Declarant two vas built• sepias and a Certificate of Compliance executed by Grantee'• atete licensed consultant (engineer, architect and/or landscape architect). The Certificate of Compliance shall warrant that the completed grading, landscaping i and construction conferee to the plane and specifications therefor approved by Declarant. 2.3 Grantee's Cost. The Specific Facilities, the Other Improvements, and all other landscaping, grading and other improvements made ov constructed In. about or on the land as contemplated herein shall be constructad, Installed and completed at the sole cost std expense of Grantee and without my cost, liability or expense to Declarant. ' 2.4 Fulfillment of Mae Conditions. Certain cep conditions dated Movember 21, 1991 (copies of which have been provided to Grants*) have been Imposed in connection with the approval and recordation of the Final Map. Except as othervise agread In writing by Declarant and Grantee, Grantee shall comply with and /or fulfill all of those duties and obligations imposed by such cep conditions on the 'Applicants and /or 'Subdivider- attributable to Grantee's use or development of the Land, all at Grantee's sole cost and expense. 2.5 Cosollance With law. (a) Grantee to Comely. The Specific Facilities, the Other improvements and all rther landscaping. grading and other improvements made or constructed in, about or on the Land, and the use thereof, shell comply at all times with all ptblic laws, ordinances and regulations applicable thereto. Without limiting the generality of the foregoing. Grantee shall obtain, at its sole expense, all of its internal and external governmental approvals and permits And approvals of other governmental authorities with Jurisdiction which my from time to time be required with respect to the performance contemplated under this Declaration, including, as applicable and without lialtatfon, appropriate seeing, building permits, permits from the California Coastal Commission, operating and business licenses and permits and the like. In obtaining such approvals and permits, Grantee shall prepare, at its sole expems, as necessary and without limitation, all environmental impact reports, engineering studies and the like as necessary. (b) Approve Is of Applications. All requestscrapplicatlons, together with all supporting documentation, for governmental approvals or permits which require discretionary action by discretionary bottes of Crentee or on the part of another governmental agency, shall be submitted to and coordinated and approved by Declarant prior to placing such approval on the agenda of Grantee's discretionary body or filing with any other governmental agency. Declarant shall have a period of forty five (45) days after receipt to disapprove any request* or applications so submitted by Grantee, and in the event of disapproval shall specify the reasons therefor. Failure to disapprove within such forty five (45) • day period and Declarant's continued failure to approve or disapprove for fifteen (15) day, after Cranta's written notice that Declarant has failed to approve Or disapprove as required hereunder shall be deanad approval thereof. Grantee shall cause copies of all written co oacsicatioce between Grantee and other gov romntal agencies processing such requests or opplicatloce to to delivered to Declarant within five (5) business days after such tommwiution has been delivered to the addressee. , r 2.6 2gmpg. Before the ceoemement of any of the work required under this Article 2, Grantee shall furnish to Welarant true copies of any and all labor and mterlal bonds end faithful perfarsanee bends. if any, required of Grantee by any governeental &gamy concerning such work. 2.7 Transfers. (a) rransfers Prohibited. For a period of not lea than twenty-five (25) year. after the Effective Date, Grantee shall not sell, lase, a� convey, exchange, encumber or otherwise transfer the land or any portion thereof or facilities thereon, whether by agraesant for sale or in any ether sooner (herein collectively referred to as a -transfer") without first giving Declarant at least sixty (60) days' prior written notice of all term and conditions of such proposed transfer and the right to either (1) acting reesenably, approve or disapprove such transfer, (11) exercise its option to repurchase set forth in Section 5.3 below, or (111) exercise its right of first refusal set forth to Article 4 below. Declarant in its sole discretion may withta such sixty (60) day period exeretse any such right. Declarant's failure to so act within such sixty (60) day period shall be deemed to constitute approval of the transfer on the i term and conditions proposed by Crantee. Any tiro after the twenty fifth (25th) anniversary of the Effective Date, Orestes say transfer the land without Declarant'a approval under this Section and without regard to Declarant's option to repurchase set ferrh in Section 5.3 below or Decl.rxnt's right of first refusal net forth In Article 4 below. Grantee hereby acknowledges that it would be reasonable and appropriate for Declarant to disapprove a transfer and exercise its option to repsrtehase and /or right of first refusal If the proposed transferee is not adequately experienced, knowledgable and financially capable to own and operate a public library. ` - '- - - . (b) Fernitted Transfers. :otwitbsrandlag the foregoing. (1) Grantee my transfer the Land to any other governsemal or quasi- govermental encicy or agency which has m tea priwary purpose mletenance and operatlon of public libraries provided such entity shall be subject to all of the provisions of this Declaration or (it) provided Grantee complies with the provision of Section 2.e below, Declarant shall consent to a transfer or encumbrance an the Lend made in connection with an interim or permoent loan or loans or other iota of private or public ffcencing (including without Unitarian bonds, lease revenue obligations or certificates of participation) ( "public obligations") ado in good fetch sad for value by an institutional lender or by a public obligation, the proceeds of which rre used only for the costs and expenses of umh public obligations and construction of the Specific Facilities and Ocher lmprwveesnts or refinancing of a construction fisaming In an amount not to exceed the amount outstanding under the construction financing (collectively, 'Permitted Transfers'). 2.8 Subordination or Gonsant to Transfer for "Ile Financing. Subject to the following provisions and the provisions of Section 5,7 hereof, Declarant will either consent to a transfer described in Section 2.7(b) above, without exercise of Declarants right of first refusal contained in Article 4 and the option to repurchase contained in Section 5.3 (collectively, the "Enforcement Rights`) or Declarant will subordinate its Enforeesent Rights to any encumbrance raferred to in Section 2.7(b) ineadiately above, (which Section 2.7(b) shall continue in effect even after Section 2.7 no longer has any application to this Declaration, for purposes Only of describing the transfers and encuabrames to which Declarant will cesticet to consent or subordinate Pursuant to this Declaration) provided that the prim 1psl amount of such a loan or public obligation does not, in eenbtsation with other loam and /or public obligations secured by or affecting the land and/or the improvements constructed thereon do not exceed at any ties nicety percent (901) of the fair market value of the Land and any improvenents thereon, valued taking Into account the restrictions contained In this Declaration, and such loans and/or public Obligations are at commercially reasonable interest rates and otherwise contain commercially reasonable terns and conditions. Grantee will provide Declarant with appraisal information from a reputable N.A.I. appraiser, from the Office of the Assessor of Orange County or from an institutional lender reasonably satisfactory to Declarant to verify that the total lawn -to -value rate doss not exceed ninety percent (900). No foreclosure, trustee's sale or deed in lien of foreclosure with respect to any such permitted smumbranca or exercise at say n nerdy to enforce a public obligation shall be dammed an 'Assignment' for purposes of Section 2.7, above. Within tan (10) verkinS days after receipt of the following Ltame, provided the foregoing requirements have been satisfied and provided there is no default under any provision of this Declaration or under any other obligation batsman Declarant and Cranes relating to the land, Declarant ,{ shall execute, acknowledge and deliver to Grantee a subordination instrument In substantially the form attached hereto as MIBIT 3 or a consent to transfer. pursuant Co issuance of a public obLLgetton: J1 (a) Cony of loan Documents. A true and complete copy of ell instruments executed by Grantee evidencing or securing the Issuance of a public obligation or loan; any lease, mortgage, deed of trust or other interest or right created to enforce payment of any public obligation which effects the Land must i net secure or relate to any obligation or indebtedness not related to improvement �S of the land', and neither the note, the mortgage, deed of trust, lease nor any other document or instrument pertaining to a loan or public obligation pertaining to the land shell contain any provision making it a default thereunder if the ' obligor or any other party defaults In any obligation net related to the acquisition or improvement of the Land; ` (b) Title Export. A preliminary title report dated net J earlier then fifteen (15) days prior to submittal showing no title exceptions other than those in existence at the time Doclarant transferred the land to Grantee, other utility easements reasonably necessary to serve the Land, and other matters approved by Declarant; (c) Disbursement IMtyuttfons. A copy of the executed - financing_ instruments, loan agreement or other agreement pertaining to the disbursement-Pf funds, which must provide in a manner satisfactory to Declarant that the funds disbursed- therewader_ will be used only to purchase or improve and benefit the Land, or to refinance original financing made for such purpose (in an amount not to exceed the amount outstanding under the acqulsitlon/con. _ruction lean refinanced); and (d) Renueat for Notice of Default. Unless public obligations are issued which do not Involve a standard mortgage lien to secure performance of a note, s copy of a Request for Notice of Default pursuant to Section 2942b of the California Civil Cede prepared for execution and aeunowledgment by Declarant which, when retarded at Grantee's experts, will entitle Declarant to the notices prescribed by said Section 29426. If public obligations are issued, then the documentation for such financing shall require delivery of a notice of any default to Declarant prior to exercise of any remedies available upon such default. 2.9 Costa of Reelonal Development. Grantee uMaratanda that development of the Specific Facilities on the Land will be accomplished in conjunction with drselopment of other real property in the Center by Declarant other private parties. Grantee hereby agrees to pry its abate of infrastructure Improvements made on, adjacent and off the sites of the Land. The infrastructure improvements shall include the improvements required to complete the items sot forth in MISIT I of the Exchange Agreement. 2.10 I%Mrthur Bedevsrd Dedication and Maintenance. Declarant and City agree that a land area along MacArthur Boulevard shall be designated on the Final Map to be used exclusively for future expansion of MacArthur Boulevard. Prior to construction of road and other Lmprovsnsnto for such expansion. Grantee shall not use the area designated for any purptee other than installation and maintenance of landscaping. Grantee agrees to Lmtall landscaping within such area prior to completion of construction of the Specific Facilities pursuant to plane and specifications approved by Declarant in accordance with the standards and proted4res set forth in Section 2.2 and to maintain such area in a first class condition, order and repair at all times prior to commencement of construction for expansion of MacArthur Boulevard. a r'.. -.sr:. w n 3.1 Unawroved Dewlgoment er Use. Unless expressly approved by Declarant, which approval Any be withheld by Declarant in its sole discretion. Grantee shall not permit the construction, maintenance, operation or was of Any structure or improvements me the Land net In full compllanca with all requiremants of the law, this Declaration and any other covenants, conditions and restrictions from time to time covering the land. 3.2 General Maintenance. Prior to the completion of the Specific Facilities, Grantee shall maintain the land in a clean, sanitary, orderly and attractive condition, free of weds, debris and pasts. Upon completion of the Specific Facilities as contemplated herein, Grantee shall at all times maintain char Specific Facilities, the other Improvements and all other Improvements from rise to ties located on the Land, including without limitation the landscaped areas, in first -class condition, order and repair. Grantee shall remove any graffiti on cha improvements, other Improvements and all other Saproveesnta en, the land within three (3) business days after delivery of notice by Declarant. 3.3 Restoration. If any building or improvement on the Land, or any part thereof, or any landscaping Installed upon the land, shall be damaged or destroyed by fire or other casualty, Greece* shall at its cat and expense either (i) repair or restore the same According to the original plans thereof or to such modified plans as shall be previously approved in writing by Declarant a provided above, or (Si) demolish such damaged or destroyed improvements and leave the Land (or applicable portion thereof) In a clean and safe condition. Such repair, restoration or demolition shall be commenced within one hundred twenty (120) days after the damage or loss occurs And shell be completed with due diligence but net longer than as (1) year after such work is cpmmen"d. The time periods specified In this subparagraph entitled "Restoration" shall be extended a provided In the Section of this Declaration entitled •Unavoidable Delay." 3.4 —2Xtinaee. Grantee shall not drain or discharge water free the land (including but not limited_to rain water And water free landdrape sprinkler systems located on the Land) art-ti to idjaaanr nand except as follows: Grantee shall at all times cause the Land to be graded and drained so as to cause the discharge of all water from the Lend onto the public street adjoining the land or Into An established drainage facility, if Any. an or adjacent to the Land which has been designed to accommodate the water at the rate discharged. 3.5 'Sim.. Grantee shall net place or use any signs, hammers, balloons, displays of other advertising media 1n, on, about or above the Land or on or In any Improvements constructed or placed thereon unless it has first obcelned the prior written consent of Declarant as co the number, size, location, height, Illumination, color and design of such signs or other media. Declarant shall not unreasonably withhold such approval so long as such signs or other media (a) comply wit*_ (I) Declarant-s sign program for the Land, the property surrounding the Land ant the geesfitted property, if any, And (ii) the statutes, ordinances or regulations of any governmental entity or agency having jurisdiction thereover including Grant" itself and (b) are in harmony and conformiry with the existing or proposed improvements on or in the vicinity of the Land and with Declarant's general aesthetic and architectural plans and criteria for the Land, the Center And the general area In which the land to located. Except as provided in this Section, em sign, banner, balloon, display or other advertising media Mich is visible from adjacent land or any public or private street shall be maintained in, on about or show the Land or on or in any improvements constructed or placed thereon. 3.6 Prohibited Operations and Uses. No trailer, camper, bus, automobile. motorcycle, boat or other vehicle or equipment ("vehicle ") shall be permitted to remain upon the Land overnight after 11:15 p.m. or before 5:00 a.a. No use or operation shall be made, conducted or penitrad on or with respect co all or any part of the Land or Improvements thereon vh:oh 1a obnoxious to or out of harmony with the residential and /or commercial neighborhood in the vicinity A the Land. Included Among the uses or operations Mich are prohibited and are deemed to conflict with the reasonable standards of appearance and saintowmea required hereby, are saes or operations Mich produce or are accompanied by the following characteristics, Mich list is not intended to be all, inclusive: n U r� f r r (a) Any public or private neisamee; (b) Any vibration• mine, sound or disturbance that is objectiwuble due to Intermittence• Mat, frequancy shrillness or landmass; (c) Any direct lighting Mich is not shielded and confined j within site boundaries; / (d) Am emission of odors• noxious• caustic or corrosive matter• whether toxic or nontoxic; (a) Any litter, dust• dirt or ash in excessive quantities; (f) my use of a structure of a temporary character, trailer, tent, shack, garage, barn or other outbuilding except for such structures maintained on the Land during a period permitted for construction or reconstruction of improvements; (g) Any service, maintenance, repair or washing of any vehicle on the Land at any time except for emergency service necessary to mow a vehicle to a maintenance facility off of the land; we I (h) Any raising• branding or keeping of animals, livestock or poultry of any kind; (1) Fuel storage of any type; 7 (j) Any accumulation of rubbish, trash or garbage. All refuse contatmrs,.alr conditioning devices, utility areas, storage areas and machinery i and equipment shall be prohibited upon the Land unless screamed from view from all adjoining lots and public and private streets; and _ (k) Any exterior radio antenna, television antenna, •C.g.' antenna, •satellite dish.' microwave transmitting or receiving antsms or other i antenna, transmitting or receiving device of any type unless It Is screened from view from all adjoining lots sad publie and private streets. Any screen required under this Section shall consist of permanent landscaping and/or improvements In Masonry with other landscaping and Improvements in the Center and approved in writing by Declarant. The provisions of this Section entitled "Prohibited Operations and Uses' shall not in any way supersede the otba- Restrictions. 3.7 No Subdivision. Grantee shall mt effect any .:hangs or amendment to the Final Nap covering the lad or record any further parcel or final map of the Land or any portion thareof.or facilities thereon pursuant to the California Subdivision Nap act or any similar lw and/or local ordinances adopted pursuant thereto, or file any tentative maps or applications with respect thereto with any governmental agency, nor shall Grantee file or record a condominium plan covering the Land or any portion thereof or any improvements thereon or any applications with respect thereto nor shall Grantee corny a portion enneisting of less than all of the Land, unless expressly approved by Declarant which approval my be withhold by Declarant in fu sole discretion. 3.9 Zonins. Grantee shall not use or develop or attempt to use or develop the land or any portion thereof for any purpose other than those purposes expressly allowed under the zoning ordinance or ordinances of the governments. entity having zoning jurisdiction over the Land. Additionally, Grantee shall not at any time change er attempt any change in zoning, or obtain or apply for A conditional use permit, zoning variance or exception or ocher similar approval with respect to the use or development of the Land or any portion thereof not expressly allowed under such existing zoning ordinance, unless expressly approved by Declarant, which approval may be withhold in, its sole discretion. Notwithstanding the foregoing. Declarant shall not w'roasomably withhold Eta consent to Grantee's application for such conditional use permit as may be required for development of the land with the Specific Facilities. Grantee shall obtain Declarant's consent prior to placing such application on the agenda of Grantee's discretionary body or submitting any such application or related documents to any other governmental agency and thereafter will submit copies of all such documents to Declarant for its review and information. 3.9 3ndmnin. Declarant and Declarant'• past and present employees. officers, directors, shareholders, agents and representatives and its and their respective successors and assigns (collectively, the •Indasnitess•) shell not be liable for any lass, damage, injury or claim of any kind or character to any parson or property arising from or caused by (a) the improvement. development, maintenance, we, lease or other conveyance of the Land or improvements thereon or any portion thereof or interest therein, Including, without limitation, any loss, damage, injury or claim arising from or caused by sJ or alleged to arise from or be caused by (1) amt nsa of the Land or any part thereof, (Li) any defect In the design. construction of, or material in my structure or other improvement upon the Land, (111) any defect in or contamination of soils or in the preparation of molls or in the design and socomplisMent of grading, (Including the existence of any contaminants or hazardous materials in or on the soil), (iv) any act or omission of Grantee or any of Its agents, employees, licensees. levitate, or contractors, (v) any f accident or casualty on the Land, (vi) any reprtsentatione by Grantee or any of Its agents or employees, (vii) any violation or alleged violation by Orontes. Its employees or agents of any law now or hereafter anactad, (viii) any slope failure of subsurface ,geologic or groundwater condition, ((x) any seek of design, canstructiom. engineering or other work with respect to the Land, (s) any other cause whatsoever In connection with Grantee's use of the land or Grantee's me' performance, under this Declaration, or any ether agreement with Declarant relating to the land, or (b) the negligence or willful misconduct of Grantee or ' Its employees or agents in the development, construction, grading or ether work performed off the Land by Grantee pursuant to this Declaration, or (c) the breach by Grantee of any of its obligations under this Declaration. Furthermere, as a material put of the consideration of this Declaration, Grantee hereby wives an its behalf all claims and demands against Declarant for any such loss, damage, or Injury of Grantee, and agrees to indemnify, defend and hold harmless Declarant I( and its property, and the other Indem.ltecs from all loss, liability, damage, costs and expenses (including attorneys' fees) arising from or related to any such loss, damage, injury or claim, whether incurred or made by Grantee or may other.yerson(s). The foregoing waiver and Indemnity shall apply to a claim or action brought b" Private party or by a governmental agency or entity under any statute or common law now or hereinafter in effect and is intended to apply with respect to loss, damage, injury o[ [lain. arising before or after the lasso, sale or other conveyance of any portion or all of the Land of any improvements thereon. With respect to design, construction methods, materials, locations and other matters for which Declarant has given or will give its approval, recommendation or other direction, the foregoing waiver, indemnity and agreement shall apply irrespective of Deelarant's approval, recommendation or other direction. Notwithstanding anything to the contrary above, nothing contained in this Section shall operate to relieve Declarant or the other Irdemnitees from any loss, damage, injury or claim ultimately established by a court of coapstant jurisdiction to have been cauaed by the sole negligence or willful misconduct of Declarant or the other Indemnitees. Grantee's covenants in this Section arising from or related to acts or occurrences during the time of Grantee's ownership shall survive the leas- or other conveyance of all or any part of the Land or improvements thereon and shall be binding an said Grantee (as wall as Its successors to the Land) until such tins as action against the Indemmitees Is absolutely barred by an applicable statute of limitations. ARTICLE a, DECIAR"l'S RIGHT OF FIRST REFUSAL Except with regard to 'Permitted Transform- described In the Section above entitled •Transfers', if, at any time prior to the twenty fifth (25th) anniversary of the Effective Data, Grantee shall determine to transfer all or any part of the LW or the improvements thereon or any interest therein ("Interest'), Grantee shall notify Declarant of the price and the tams an which Grantee will he willing to transfer. If Declarant, within sixty (60) days after receipt of Grantee's notice, indicator in welting Its agreement to purchase said Interest for the price and an the tats stated in Crantes's notice, then Grantee shall transfer and convey the Interest to Declarant for the price and on the terms stated in such notice. If Declarant does net indicate its agmeacnt within such sixty (60) day period, then Grantee thereafter shall have the right to transfer and convey the Intaresc to a third party, but only for a price not less than the price offered to Declarant and on terms net more favorable than those stated in the notice. If Grantee does not so transfer end convey the Interest within one hundred eighty (160) days after Grantee's notice, then any further transactions (including a transaction on the memo price and cams previously submitted to 10 Declarant) shall be dossed a now determination by Grantee to transfer and convey said Interest, and the provisions of this Article shall again be applicable. ARTICLE 5. gUZ=. 5.1 Default and General Remedies. In the event of any breach. violation or failure to perform or satisfy any of the Restrictions which has not u been cured within the applicable core period as sat forth below. Declaramt at its sole option and discretion may enforce any one or more of the following remedies I or any other rights or remmdiss co which Declarant say be entitled by law or equity, whether or mot at forth herein. Unless a ewe period is otharwiso specifically designated, a cure period shall comments when Witten notice is given to Grantee of a violation hereunder and shall end ten (10) days thereafter f In the came of a monstary default and thirty (30) days thereafter in the came of ' a nonnenetary default; provided, however, that if a nonmonstery default Is not :oncerably c• aptible to _.e pro ,tly within the thirty (pO) nay period, then Grantee shall have a reasonable time to cure the same so long as Grantee has commenced such cure promptly within the thirty (30) day period sM thereafter diligently prosecutes the cure to completion. To the mamimus extent allowable j by law, all remidLas provided herein or by law or equity shall be cumulative and not exclusive; provided, however, that except as provided in the following sentence in the event Declarant elects to exercise my remedy provided for in Section 5.3 hereof based upon a particular violation of the Restrietiam, such remedy shall be Declareat's sole sM exclusive remedy for such violation of the Restrictions. Notwithstanding the foregoing. Declarant'• remedies for a violation or breach of Section 3.10 (Indemnity) shall be cumulatlw with and in addition to its rowdies for other violations or breathes under this Declaration. i (a) Demons. Declarant may bring a suit for damages for any comperaable breach of or noncompliance with any of the Restrictions, or declaratory relief to determine the enforceability of any of the Restrictions. 1 (b) Equity. It is recognized that a particular or ongoing violation by Grantee of ono or more of the foregoing Restrictions may cause Declarant to suffer material-injury or damage not compensable in aeney damages (including, but not limited to, irreparable effects on the type and quality of development an and use of the Denefitted Property or portLOms thereof and/or frustration of Deelarant's purpose for conveyance of the Lad to Grantee), and that Declarant shall be entitled to bring an action in equity or otherwise for specific performance to enforce compliance with the Restrictions or an injunction to enjoin the contin an:e of any such breach or violation thereof, whether or not Declarant exercises any other remedy set forth herein. 5.2 inspection. Declarant or its authorized representatives may from time to time, at arty reasonable hour, enter upon and inspect the land, site of any portion thereof or improvements thereon to ascertain compliance with the Restrictions, but without obligetion to do so or liability therefor. 5.3 option to gggurchose the Land. Upon any proposed, attempted or actual 'transfer' In violation of the provisions of Section 2.7 above and, in addition to the foregoing roadies described in Section 5.1, upon any violation of the Restrictions itemized in Sections 2.1(a) ('Improvement and Continued Use-) or 2.1(c) ('Commencement and Completion'). Declarant, in Its sale option and discretion; shall be entitled to repurchase the Land as provided below. (Declarant shall not be entitled to repurchase the Land unless a proposed, attempted or actual transfer In violation of Section 2.7 has been initiated, a violation of the restrictions in violation of 2.l(a) has occurred or construction has not been commenced or completed as required by Section 2.1(c).) (a) Grant of Option. Grantee hereby grants to Declarant an exclusive option to purchase the Land subject only to: i (1) Current taxes not y,t delinquent; (ii) Batten affecting title existing at the Effective Data of this Declaration, excluding any mortgage, deed of trust or similar Increscent -to which Declarant has subordinated the Enforcement Right, pursuant to Sectlon 2.E'above: 11 (111) Matters affecting title which are created, "de, "surd, consented to or requested by Declarant, its successors or assigns, excluding may rrtgage, deed of treat, any rtter related to ime"nea of any public obligation or stellar Swtrument to which Declarant has consented without exercise of the Rnforcemant Rights or to which Declarant has subordinated the Rnfozcement Rights pursuant to Section 2.8 above; (iv) Natters shown as printed exemptions in the standard foe California Land title Association owwr'a policy of title insurance. (v) Aontaterfering movements for utilities wed in connection with the Improvements constructed on the Land. (b) Sxerciae of Reourehase Optim. Declarant may exercise its option to repurchase the Land by giving written notice to Grantee Of DlCllranC's election to repurchase within (i). sixty (60) days after receipt of Grantee's notice of proposed -transfer- as provided in Section 2.7 (Tr.fers) above, (ii) within ninety (90) days after Declarant receives actual —tics Of any transfer or attempted transfer in violation of any provision in Section 2.7, (111) within ninety (90) days comawing thirty (30) days after delivery of notice to Grantee of violation of the Restrictions itwixed in Section 2.1(a) if such violation has continued mebated, or (Iv) within one hundred eighty (180) days of the respective comaeuewant of co"Istfen dates (" much dates say be extended p"muant to the tart of this D"laratim) in the event of Grantee's violation of Section 2.1(c) above. For purposes of this Section 5.3, Declarent's actual notice shall mew write to the parson to whom notice may be addressed under Section 6.7 of this Declaration, and he other persons. No failure of Declarant to exercise its option upon Grantee's failure to coon mo construction as provided above shall constitute a waiver of Its right to exercise the option open Grantee's failure to coapleta construction by the appropriate date, as described above. No failure of Declarant to exercise its option in the event of any proposed, attempted or actual 'transfer• (whether approved by Declarant or not) in violation of Section 2.7 above shall constitute • waiver of Declarant's rights to smarties the option upon any such transfer subject to Section 2.7 which sight be proposed, attempted or cowuseset_ed at a later time. No failure of Declarant to deliver a notice of violation of the Restrictions contained in Section 2.1(a) shell constitute • waiver of Deelarant's rights to deliver such notice at •ny time and exercise the option. Rescission of any notice of violation of the Restrictions itemized in Section 2.1(a) prior to the option betting exerclsable, or if such violation 1s cured, after the option betting exercisable shall net cowtitute waiver of Deelarent's right to later notify Grantee of a new violation and exercise the option. Any rescission of notice of exercise of this option shall not constitute waiver of Declarant's right to exercise the Option again if a later event causes the option to bectme exercisable. (c) Expiration and Ouitclaln. Unless axertisedby Declarant, this option shall expire upon the twenty fifth (25th) anniversary of the Effective Do". After expiration and upon written request therefor by Grantee. Declarant shall execute and deliver to Grantee a qu(telaim deed satisfactory to Declarant relinquishing all of Its rights under the option to repurchase portion of this Declaration. (d) R ourchgse Pri e. Declerant's purchase price for the LM upon its exercise of the option provided above, shall be the greater of: (1) An amount including the following: [A) The price attributable to the Land equal to the looter of (A) $4,400,000 Increased or decreased by CPT adjustments which shall be limited to an a- uelizad increase or decrease of five percent (50 per annum or (B) the appraised fair rrket value of the Land with the we restricted to the we for which Declarmt notifies Grantee at the time of exercise of the option that it intends to use the Land. Declarmt si•11 notify Crantee that it intends to use the Land either for coaserclal office ;r retail "a at the time of delivery of the notice of exercise or any clam thereafter (Failure of Declarant to specify a use in conjunction with delivery of a notice of exercise of the optim. shall not Invalidate or otherwise affect exercise of the option.). The CPT adjuetmedt shall be the percentage increase or decrease in the CPT measured frt the month which is two months prior to the Effective Date to the month which to two months before the date of delivery of the notice of exercise. 12 g g U 1 The CPI shall be the Consumer Price Index for All Urban Consumers Los Angeles- Anaheim- Riverside Metropolitan Area (all Item) compiled by the United States Department of Labor. Bureau of Labor Statistics, based upon 1982 -84 as 100; provided, however, that if the CPI Is modiflad or changed. then the CPI shall be a converted or substituted Index as determined by Declarant. Plus (B) The fair market value of the Ussable Improvements, if any. on the Land at the time the Optima Is exercised. The •Useable Improvements• shall be limited to those interior are" of buildings which can be aced or converted for use as interior commercial or retail rentable space in accordance with the we which Declarant intends to put the Useable Improvements as designated by Declarant. Fair, market value of such Useable Improvements shall be determined wing an income method of appcaL "I based upon comparable rents determined on a wsable square foot basis for the square footage of the Useable Improvements offset by the cost of any improvements required to convert the we of the building to the we which Declarant notifies Grantee that It i.- ,tea.'.: to rut the Usable Improvements. Ws (C) All costs, expenses, interest, face, advances and other spas required to be paid by Grantee to Declarant hereunder, to the extant net reimbursed to Declarant by Grantee, shall reduce the smont of any repurchase price to be paid by Declarant under the term of the repurchase option contained to this Declaration. Or (11) The unawrtlxedprim £pal moment. plus interest of, and expenses (including without limitation costa to rode" and discharge Including any call premium provided that aggregate call premium shall be limited to five percent (5e) of principal) incurred in connection with, any Issue of public obligations where the proceeds have been wed only for costa and expensea related to construetion of the Specific Facilities on the Land provided that the original principal amount of such public obligations does act exceed $8,000,000.00 and provided that the amount payable to Grantee under this subparagraph (it) shall be reduced and offset by my and all funds hold for the benefit of any holders of public obligations other than funds held to pay the costa of issuance, if my. (a) Repurchase Escrow Tens. Within five (5) days after Declarant's exercise of the option as provided above or as soon thereafter as possible, an escrow shall be created at first American Title Insurance Company or another escrow company selected by Declarant to consummate the purchase as specified herein, which escrow shall have a time liatt of thirty (30) days extended by any period necessary to arbitrate any determination of fair market value as provided in Section 5.4 below. Said escrow shall be subject only to approval by Declarant of a then current preliminary title report. Any exceptions shown thereon created an or after the Effectiva Data hereof, and disapproved by written notice to Grantee through escrow, shall be removed by Grantee at Its sole expense at or prior to closing of everw. In the event that the Land or any portion thereof is encuatered by a mortgage or deed of trust, Declarant my unilaterally instruct the escrow agent to satisfy the Indebtedness secured thereby out of the proceeds payable to Grantee through the foregoing escrow. Any additional amount necessary to satisfy such indebtedness shall be paid by Grantee. Grantee and Declarant shall each pay one -half of the escrow fees. Grantee shall pay for documentary tax stamps, for recording the dead, and for a California Land Title Association standard form wmer'a coverage policy of title Insurance In the amount of the purchase price showing title to the Land vested In Declarant or its assigns fns and clear of ell lieu, encumbrances or other title exceptions other than those set forth in this Declaration. Any other costs or expense shall be allocated between the parties in the manner customary in Orange County, California. (f) Irrevocability. The option created hereby shall be Irrevocable by Grantee, and shall be binding upon the representatives, successors and assigns of Grantee. (g) Warranties. Plans and Soeetfleations. In the event Declarant reacquires all or any portion of the land, the Specific Facilities or the Other Improvements under this Section 5.3, Grantee shall assign and transfer to Declarant for no additional consideration, all warranties, plans and sopciflcations relating to the Usable Improvements and any other improvements transferred by Grantee to Declarant hereunder. 13 /I �1 ..I I 5.4 Arbitration Procedure. If Declarant and Grantee are not able to agree to the fair market value of the land or the Useable Improve manta within thirty (30) days after the date Declarant gives Grantee notice of exercise of the option, than the following arbitration procedure shall apply: [A) Declarant shall within An additional thirty (30) days, at Declarant's coat, deliver to Grantee a wrLtbn appraisal of the applicable highest fair market value with which Declarant agrees, prepared by an independent qualified appraiser ('Declarant's Appraisal'). The tan 'independent qualified appraiser- as used in this Section shall wan a prefessioal independent appraiser who is a Member of the American Institute of Real gets" Appraisers (R.M. or M.A.I.), the society of Real Ester, Appraisers (S.R.A., S.R.P.A., or S.R.R.A.), the American Society of Appraisers (somber or senior —mbar A.S.A.), or another recognized association of appraisers, or a similar association of real estate appraisers that has adopted rules and regulations governing the professional conduct and ethics of its members requiring independent appraisals without bias to any party or to any result, or has such other education and experience so as to be considered qualified by both parties. (R) If Grantee does —t agree with Declarent's Appraisal, Grantee shall notify Declarant in writing of such disagreement in writing within ten (10) days after receipt of Declarant'• Appraisal. Within thirty (30) days of such notice, Grantee shall at its cost deliver to Declarant a written appraisal of the applicable highest market value with which Grantee agrees, prepared by an independent qualified appraiser (•Grantee's Apprslsal'). If Grantee fail& to deliver Grantee's Appraisal within the time provided, or if Grantee's Appraisal of fair market value 1s lover than or equal r, that centalnsd in Declarent's Appraisal, then Declarant's Appraisal shall constitute the final and binding determination of the applicable fair market value. [C) If Grantee's Appraisal Is delivered to Declarant within the time provided and 1s higher, than Declarant'' Appraisal, and if Declarant and Grantee cannot than agree as to the applicable highest fair market value within ten (10) days after delivery of Grantee's Appraisal to Declarant, then Declarant and Grantee shall within tan (10) days thereafter mutually agree on a third independent qualified appraiser acceptable to them to make An independent determination of the applicable highest fair marke_ value (the 'Fimal Appraisal'). Such Final Appraisal shall be delivered to Declarant and Grantee within thirty (30) days of the selection of the third appraiser. If Declarant and Grantee do not agree an a third independent qualified appraiser acceptable to them as specified above, then such third appraiser shall be appointed in accordance with the provisions of California Code of Civil procedure Section 1281.6, or any successor statute, and in such event the Independent determination of the highest fair market value made by the third appraiser so appointed shall be the 'Final Appraisal.' If the third appraiser must be appointed pursuant to the provisions of the California Code of Civil Procedure Section 1281.6, or any successor statute, Declarant shall file a petition r, appoint the third appraiser with the Superior Court of Orange County, California ('Court'), and shall set the hearing on the petition on the earliest date permitted by the Court's calendar and by the applicable notice period required by law, Declarant and Grantee shall share equally the cost of the Final Appraisal. I£ the Final Appraisal states a fair market value between that of Declarant's Appraisal and Grantee's Appraisal, the Final Appraisal shall be the final and binding determination of the applicable market value. If the fair market value established to the Final Appraisal is higher than (1) the fair merket value established in Grantee's Appraisal or is lower than (2) the fair oarket value established In Declarant's Appraisal, or equal to either, then the final determination of the applicable fair market value shall be (1) or (2) depending upon which one Is equal or closer to the fair market value established in the Final Appraisal. )D) The procedure act for Ch above for determining the applicable market value shall be the exclusive procedure therefor and shall be final, binding and nonappealable unless expressly waived by both parties In writing. It is the responsibility of Grantee to ensure that this procedure for determining highest fair market value is Instituted in sufficient ties to satisfy any commit —wits, agreements or made of Grantee. 5.5 Waive . No Yalver by Declarant of a breach of any of the Restrictions by Grantee and no delay or failure to enforce any of the 14 n U 7 Restrictions shall be construed or held to be a waiver of any succeeding or preceding breach of the same or AM other of the Restrictions. We waiver of any breech or default of Grantee hereunder shall be implied from any mission by Declarant to tab my action on account of such breach or default if such breech or default perststs or is repeated, and no express waiver shall affect a breach or default other than es specified in said wlver. The tenant or approval by Declarant to or of any act by Grantee requiring Declarant-s consent or approval shall rot be doomed to waive or render unnecessary Declarant•a consent or approval to or of may subsequent similar acts by Grantee. 5.6 Casts of 8nfortament. In the event any legal or equitable action or preceading shall be Instituted between Declarant and Grantee to enforce any provision of this Declaration, the party prevailing 1, such action shall be entitled to recover free the losing party all of its costs, including court costs and reasonable attorweys• des. 5.7 RLhcs of n &ndara. No breach or violation of the Restrictions shall defeat or render invalid the lien of any mortgage, deed of trust or similar instrument securing a loan made In good faith and for value with respect to the development or permanent fismncing of the land or my portion thereof; provided, however, that this Declaration and all provisions hereof shall be binding upon and effective against any subsequent over or other occupant of the land or portion thereof whose title is acquired by foratlosure, trustee's sale or deed in lieu of foreclosure but (a) suet subsequent owner shall have a reasonable time after acquiring title In which to coca any violations or correct and cheap ary facts giving rise to Daclarant-a rights under this Declaration occurring prior to one)) transfer of title and which are reasonably capable of being cured or changed provided, that such subsequent owner diligently acts to effect sucb cure or change (and in the event of such diligent sad timely cure, such subsequent owner shall have no further liability In connection with such prior violation or the continued ox:stenea of such violation until such aura is completed), and (b) Sections 5.1(a) (Duagea) and 5.3 (Option to Repurchase the Land) shall not be — applicable as to such subsequent owner with regard to any nencurable default occurring— .prior to the time such subsequent owner acquired title. Notwithstanding the foregoigg,_my each subsequent owner shall be required to use the Land in accordance with the restrictions set forth in Section 2.1(a) and diligently complete consttweclan of any Specific Facilities and Other Improvements Which are incomplete an the data such subsequent owner acquires title, all subject to the requirements contained in this Declaration, except the time periods referred to In Section 2.1(c) shall be reasonably extended. For purposes of this Section, the construction or Installation of any improvement in violation of the requirements of this Declaration shall be deemed 'curable' so long as reconstruction, repair or replacement in a memuer consistent with the requirements of this Declaration is physically and legally possible (without respect to cost). 5.8 Advaoces. Declarant shall be entitled to advance any sues Declarant in Its sole discretion deems necessary to protect and preserve the security for its rights and interest under this Declaration (including but not limited to sums for completion of construction of the Specific Facilities or any affairs Improvements, any property taxes or assessments, insurance premiums, or amounts secured or represented by encwbraoces or liens or other charges on any portion of the ]and which appear to be prior to Declarant's rights and interest under this Declaration), all of which advances together with interest at the maximum contract rate then permitted by law shall be paid to Declarant upon demand. �M " 6.1 Dhavetdable Delay. Any prevention, delay or stoppage in the work of building the Specific Facilities, the Other Improvements and any other related improvements or other work es provided for in this Declaration caused by acts of God, war, inability to obtain labor or materials or reasonable substitutes therefor, or other similar mettern or causes beyond the reasonable control of Grantee shall extend the time within which this Declaration requires certain acts to be performed for a period or periods equal to any period of such prevention, delay or stoppage, but net to exceed In the aggregate em year; provided, however, that nothing in this Section shall excuse the prompt payment of any and all amounts due from Grantee to Declarant as required herein or the performance of any act rendered difficult because of the financial condition of 15 n U J Grantee or because of my Inability of Grantee to obtain funding from any source. Without limiting the generality of the foregoing, in no event shell Grantee's Inability to obtain construction or permanent financing for development of the Land, of a portion thereof, constitute an unavoidable delay pursuant to this Section. Furthermore, in no event shall any extension of any period of time be deemed to have occurred unless Grantee shall have given written notice to Declarant within fifteen (15) days following any such delay, setting forth the facts giving rise to such extension; and provided further that the period of ti" for exercise of Declarant'• rights shall be eoeensursemly exceeded. 6.2 Conttmmus Operations. Grantee shall proceed continuously and diligently in accordance with the reras and conditions of this Declaration. In the event Grantee does not proceed continuously and diligently, such failure to so proceed may, at the option of Declarant, be considered an event of default herein, except as such failure is excused by reason of any unavoidable delay as sec forth in the aectiuu I.eteof entitled .,,r.......b1e Delay 6.3 Covenants to Run With the Land, Tom. (a) Covenants to Run With the •M. The Land shall be bold, improved, developed, conveyed, hypothecated, encumbered, leased, rented, used and occupied subject to the Restrictions "t forth in this Declaration. The Restrictions are for the benefit of the Beraftcred Property and are intended end shall be construed " covenants and conditions running with and binding the Land and equitable servitudes upon the Lnd and every part thereof. Puthereare, all and each of the Restriettons shall be binding upon amd burden all persons having or acquiring a" right, title or interest In the Land, or any part thereof, and their successors and assigns. and shall finere to the benefit of the Berefitted Property and the owners of the benefitted Property, their successor& and Assigns, and shall be enforecabla by Declarant and its successor, and assigns. all upon the terms, provisions and conditions set forth herein. -' (b) Lem. All of the term and provisions act forth in this Declaration shall continua in full force and effect in perpetuity—pxeapt that Declarant's 'Psforcament Rigbts—' {as. described in Section 2.6 above) shall terminate twenty. five (25) years from the Effective Data hereof. (The provisions of this Declaration which shall survive In perpetuity shall include, without limitation Article 1, Sections 2.1 through 2.6, inclusive, 2.9, 2.10, Article ), Sections 5.1, 5.2, 5.5 through 5.9. inclusive, and this Article 6.) 6.6 Assignment by Declarant. Declarant may assign any of its rights and powers under this Declaration to any fee owner of any portion of the Seneficced Property, so long as such person or entity in writing agrees to assom the duties of Declarant pertaining to the particular rights and powers "signed. Upon the recordation of such writing accepting such assignment and assuming such duties, such person or entity shall, to the extent of snob assignment, have the same rights and powers and .be subject to the saes obligations and duties As ere given co and assumed by Declarant herein. Without limiting the generality of the foregoing. Declarant my aske such assigment " to the entire Land or to any portion thereof. Unless specifically assigned in writing as stated in this paragraph. Declarant alone shall have the right to enforce the Restrictions and the other provisions of this Declaration or to recover damages or other amounts for violation of the Restrictions or breach of Grantee's duties hereunder. 6.5 Amendmanta. Except as provided in this Declaration concerning (a) substitution of other real property as the Renefitted Property, (b) release of any portion or all of the Land from this Declaration, (c) reacquisition of the Land by Declarant and (d) assignment by Declarant of its rights under this Declaration, this Declaration may be terminated, extended or amended only by a writing executed by Declarant and Grantee and recorded against the Land. 6.6 Release. (a) Release by Declarant. Declarant may release any Pottle" of the Land Cram this Declaration at any tiara and for any reason without the approval of Grantee. (b) Net Aooltcabla to�elerant. Notwithstanding anything herein contained to the contrary. It Declarant reacquires title to the Land or any portion thereof at any ties after the data hareof and record(s) a notice of 16 p g U 1 termination of these Restrictions in the Office of the County Recorder of Orange County. California, these Restrictions shall comae and terminate and be of ro further force or offset as to Declarant and such property, effective xe of the data cf such recordation. 6.7 Notice. All nations, consents, requests, demands sad other /� � 1 communications provided for herein shall be In Kiting and shall be dewed to f f U bare bean duly given if tad when personally served or forty eigbt (48) hews after being sent by United States registered mail, return neeipt requested. postage prepared, to the other party at the following respective a5ftGAMes: DECLARANT: TIM IRVIM CONPFmf c/o, IRVUS LAND MANACENEtrr COMPANY Post Office box I Newport beach, California 92658 -8904 ' Attention: President /IBAC '� GRANTEE: City of Newport beach 1300 Newport Boulevard �P Post Office box 1768 - Newport leach, CA 92659.1768 ry/ i or at such other address as Declarant or Grantee any designate to the other in writing in accordance with the provision of this Section. 6.8 r rnnine iw_. This Declaration shall be govarnad by and construed under the laws of the State of California. - 6.9 Seyerability. Sn the event that any portion Of this Declaration shall become illegal, n•_11 or void or against any public policy, for any rsseon, or shall be held by any court of competent Jurisdiction to be illegal, null or void or against any public policy, the remaining portion of this D&CIA[ALion shall not be affetred thereby and shall remain in force and offset to the full extent permitted by law. '- 6.10 Cantlons. The caption wed herein are for co wdeace om1v and are not a part of this Declaration and do not in any way limit or amplify the terms and provisions hereof. 6.11 Entire Atteexnt. This Declaration, including Ubibits attached hereto which are incorporated herein by this reference, constitutes the satire agreement between the parties hereto pertaining to the subject natter hereof and all prior and contemporaneous agreements, representations, negotlations and undarstesWings of the parties hereto, oral or written, are hereby superseded and merged herein. The forgoing sentence shall in na way affect the validity of the Agreement pursuant to which Grantee acquired the Land or any instruments executed in connection theraw -th. 6.12 Candor and Number. In this Declaration (unless the context requires otherwise), the masculine. feminine and neuter genders and the singular and the plural include one another. 6.13 Time of the Essence. Time is of the essence of each provision of this Declaration in which time Is an element. 17 IN WITNESS WHEREOF, the undersigned haw executed this Declaration as of the data written below. •DECtARARfe CRANT'EE- THE IRVINE COMPANY. CITY OF NVIPORT SUCH. a Nlchlgan corporation . California pal Corporation By: I : mayor Its Mere. �.e,�d_ .,� BY: ATTEST: Ira 6 d by: 7 Its: ClIFY cieri O� ?EWE vo AFpH0,911� —rr�= Ira: Clry Manager s App: TO FORM: Guww +•r Dy: TEN: CrLy Attorney STATE OF.CALIFORNIA ) ).as CODNIY Oe) on thfsApd"y of Aadin the year 193:� before a, the undarsigaed, a Notary Public • d for said State, personally =red and /� _ ;a.. '�1.�� l personally Ww,m to as 7 or proved to ve on the basis of f satisfi tent evidence) to be the persame who executed the within instrument u�Pe, % and respectively, on behalf of THE IRVINE COHFANY and acknowledged to me that e corporation executed it. WITNESS my hand and official seal. I�1�Rw� r�r� 6��aE taV M„ MTV amm+ta.m a..00 Notary Publ' c in and f—,7.—.id Sceta �.m IS n U I: C EXHIBII '1' LEGAL DESCRIPTION BENEFITED PROPERTY FOR THE CITY OF NEWPORT BEACH LIBRARY SITE Parcel 1 (500 and 550 Newport Canter Drive and Adjacent Land) That portion of Blcek 93 of Irvine's Subdivision in the City of Newport Beach, County of Orange, State of Call£ornia, as shown on a amp filed in Book 1, Page 88 of Miscellaeaous Records Maps in the Office of the County Recorder of said Orange County, described as follow,: BEGINNING at the easterly terminus of that certain course .hewn as having a bearing and length of "South 80'14'38' Bast 91.45 feet" in the northerly right - of -way line of San Nicolas Drive on a sap of Tract No. 6015, filed in Book 239, Pages 28 through 41 of Miscellaneous Naps in said Office of the County Recorder; thence along said right line and along the easterly right -of -way line of Newport Center Drive East, the southerly right -of -way line of Santa Rosa Drive and the southwesterly right -of -way line of San Joaquin Hills Read, all as shown on said map of Tract No. 6015 through the following courses: North 80'14.38' Vest 91.45 feet to the beginning of a tangent curve concave northeasterly and having a radius of 25.00 feet; thence along said curve westerly and northwesterly 38.16 feet through a central angle of 87'26'49" to a point of reverse curvature with a curve concave westerly and having a radius of 1670.00 feet, a radial line of said curve from said point bears North 82'47'49' Vest; thence along said curve northerly 472.13 feet through a central angle of 16'11'54' to a point of reverse curvature with a curve concave southeasterly and having a radius of 25.00 feet, a radial line of said curve from said point bears North 81'00117' East; thence along said curve northerly and northeasterly 38.16 feet through a central angle of 87'26 '.9'; thence tangent from said curve North 78'27.06' East 69.97 feet to the beginning of -a tangent curve concave northwesterly and Wing a radius of 825.50 feet; thence along sold eueVe-northeasearly 444.81 feet through a central angle of 30'52.21'; thence tangent frog Said curve North 47'34.43' East 2.20 feet to the beginning of a tangent curve concave southerly and having a radius of 25.00 feet; thence along said curve northeasterly and easterly 38.96 feet through a central angle of 89'17'26' to a point of reverse curvature with a curve concave northeasterly and having a radius of 6072.50 feet, a radial line of said curve from said point bears North 46'52'09' Bast; thence along said curve southeasterly 329.29 fact through a central angel of 3'06'25'; thence tangent from said curve South 46'14'16' East 31.81 feet to the northerly corner of Parcel 1 as shown on a map filed in Book 13, Page 41 of Parcel Maps in said Office of the County Recorder; thence leaving sold southwesterly right -of -way line of San Joaquin Hills Road and along the boundary of said Parcel 1 the following courses: South 44'06.14' Vest 140.00 fact; theme south 45'53'46' East 183.00 feet to the beginuring of a tangent cwrve concave northerly and having a radius of 25.00 feat; thence along said curve southeasterly and easterly 39.27 feet through a central angle of 90'00'00'; theme tangent from said curve North 44. 06414' East 103.60 feet to the beginning of a tangent curve concave northwesterly and having a radius of 25.00 feat; thence along said curve northeasterly 13.23 feet through a central angle of 30'19.01' to a non - tangent Intersection with said southwesterly right -of -way of San Joaquin Hills Read; thence leaving said boundary and along said right -of -way line South 46'14'16" East 48.72 fact to the northerly corner of Parcel 1 as shown on a map filed in Book 21, Page 18 of Parcel Maps in said Office of the county Recorder, said earner being a point in a non - tangent curve concave southeasterly and having a radius of 25.00 feet, a radial line of said curve from said point bears South 16'06.05' East; thence along the boundary of said Parcel 1 the following courses: along said curve southwesterly 13.00 feet through a central angle of 29'47'41'; thence tangent from said curve South 44'06.14' Vest 104.09 feet to the beginning of a tangent curve concave easterly and having a radius of 25.00 fear:; thence along said curve southwesterly and southerly 39.27 feet through a control angle of 90'00'00'; thence tangent from said curve South 45'53.46• East 166.00 fact to the westerly corner of Parcel 1 as shown on a map filed in gook 54. Page 23 of Parcel Maps In said Office of County Recorder; thence leaving the boundary of Parcel I as shown rsaes. 1 t4601 posarlptim of - w nN ?MpM' .nUM an 1 .'ch Is, 'M I U a1 1 ry on maid amp filed In Book 21. Page IS of Parcel Naps and along the boundary of ?.real 1 as shown on amid asp filed In Back 54. Pago 23 of Parcel Naps South 45'53146- East 68.09 feet to the beginning of a tangent curve coneava westerly and having a radius of 40.00 foot; theme continuing along maid boundary and said curve southeasterly 36,39 foot through a central angle of 52'07'23- to the northwesterly corvar of Parcel 3 as shown on Parcel Rap No. 04-706 filed in Book 192, Pages 1 " 2 of Parcel Maps in said Office of the County Recorder, a radial line of said curve from said corner bears North 83*46-23- Vast; thence along the boundary of said Parcel 3 and Parcel 2 " shows, on said Parcel Kap the following courses: continuing along said curve southerly 26." feet through a central angel of 37-52-37-; theme tangent from said curve South "'06114- Vast 289.00 foot to the northe"terly, corner of Parcel I as shown On a amp filed in Book 27. page 43 of Parcel Kaps in said Office of the County Recorder, said carrar being the beginning of a curve tangent to last said course, concave northerly and having a radius of 40.00 feat; theme leaving the boundary of said Parcel 2 and along the boundary of said Parcel I the following courses: &I" said curve southwesterly and masterly 62.83 feet through a central angel of 90*00�00% thence tangent from said curve North 45'53146- West 14.11 feet to the beginning of a tangent curve coneseq southerly and having a radius of 25.00 feet; theme along said curve northwesterly and "steely 39.27 feet through a central =&Is of 90'001001; theme tangent from sold curve South "'06'14' Vast M44 foot to the beginning of a tmSont curve come" menthematorly amd having a radius of feet 25.00 lFeet; theme along said curve mauth- starly 13.46 to a non-taftlAnt Intersection with the northeasterly right-of.w&y line of amid San Nicolas Drive " described In a Grant of Usamment to the City Of Newport Basch r*COrdDd In Book 8987, Page 936 of official Records In said Office of the County Recorder; theme leaving said boundary of Parcel I and along said right-of-way line as described In said Grant of Easement and as shown on amid map of Traci No. 6015 the following courses; North 46'"100- West 92.34 foot to the beginning of a tangent curve come" southwesterly and having a radius of 950 - 50 feet; theme along amid curve northwesterly 555-92 feet through a central angle of 33'30'38m to the POINT .OF BEGINNING. Parcel 2 (Fashion Island SRuT 9 _pin Cantor) That portion of Tract 6015, In the City of Newport beach, County of Orange. State of California. as per oep filed in Book 239, pages 20 through 41, Hiscallazieous Maps. records of said County. lying within the following described boundary: commenting at the center line Inter section of Santa Rosa Drive with Newport Center Drive East as shown on said map; theme south 73A27'06* West 48.00 fact along the Westerly prolongation of the center line of Said Santa Rosa Drive to a point on a non-targent curve come". Westerly and having a radius of 1557.00 feet. said point being the True Point of Beginning. a radial to said point beers North 78'27'06' East. amid curve being concentric with the center line of said Newport Center Drive Best: thence Southerly 1314.59 feat along amid curve through an angle of 48 � 22 0 31 0 to the beginning of a compound curve concave, Northerly and having a radius of 75, .00 feet; thence Westerly 1464.87 fast along said curve, through an angle of 110'52,24- to the beginning of a compound curve come" Easterly and having a radius of 1757.00 feat; theme Northerly 1243.07 feat along said curve through an angel of 40-41-58- to the beginning of a compound curve concave SomherIv and having a radius of 897.00 fast; theme Easterly 2438.09 feet along said curve through an angle of 155'436576 to the beginning of a compound curve concave Westerly and having a radius of 1557.00 feet; theme Southerly 117.30 feet along said curve through an angle of 4*19'10o to the True Point of Beginning. tdubil I 1., .0. - Xtsmr.m 2 me�h it. IM STATE OF CUIPORNIA ) ) us COMITY OF ORANGE ) n OA Iargh 19. 1992, before se, the undersigned, a Notary Public in and for the State, personally appeared PLSL.Hensom, known to as to be the M wn to M Mayor, Robert L. Wynn, kno to be the City Manager, and Rends E. Raaaio, knova to so to be the City i Clerk, on behalf of the CITY OF NESPORT BEACH, which executed the within Instrument pursuant to governing law and a resolution of its board of directors and acknowledge to so that the CITV OF NEWPORT BEAM exaoated it. WITNESS my hand and official : sea ' n CIALSEN. ry Public in ar mald scame 9BO UNOM ry aaerpuftx- oeo qb ., { U l 1 REQUIRE WITS PON SPECIFIC FACILITIES Description of Specific Facilities: .I f A free public library and related driveways. acresavoys and loodseaping. Peaittad Du: 1 r Public Library and related parking of private passenger automobiles during the hours ft Maxlsim Mo. of Buildings: Minimum Gross Floor Are.', Maximum Gross Floor At" Masimim Floef'Ylraa Ratio Commencement Date: completion Date: ow 6:00 a.m. to 11:30 p.m. dally. 1 10.000 square feet* 65.000 square feet* 50 percent 12 months from Effective Date 36 months from Effective Date e By setting forth any required minima or maximim gross foot area above. Declarant does not thereby represent or verrant that Buyer shell be able te devclap the land for such density. REQUIREMERTS FOR OTnER IMPRDVE@iTS Those improvements required by Exhibit I to the Exchange Agreeewnt. auslelo t hWMti tpvi[U Polutls MnY ii. lNa When Recorded Nail To: THE IRVINE COKPANY 550 Newport Center Drive Newport Beach, CA 92660 Attention: President/IIXC Space above thin line tar Racorder's we A.P. No. SUBORDINATION AGREEMENT NOTICE; THIS SUBORDINATION. AGREEMENT RESULTS IN YOUR RIM.HTS AND INTERESTS AND YOUR SUMITY INTEREST IN THE PROPERTY BECOMING SUBJECT TO AND OF IONEi PRIORITY THAN THE LIEN OF SOME OTHER OR LATER SECURITY INSTRUMENT. I. PARTIES AND DATE. This Subordination Agreement (-Agreement-) is sad* this day of 19 by the CITY OF NEVPORT BEACH, a California municipal corporation (•Owner•), owner of the -Land- (as defined below), and THE IRVINE COMPANY, a Michigan corporation (' TIC•), declarant under the Declaration (defined below). II. ACRNWIEnCMENTS Ownar -Iles executed a Declaration of Special Land Use Restriction*, Right of First Refusal, Mortgage Lion and Option to Repurchase tthe •Declaration') dated 19_. and recorded on -" as Instrument No. In the Official Retards of Orange County California as an encumbrance on the title of the real property described as: Parcel In the City of Newport Beach, County of Orange, State of California, as shown on a parcel sap filed in Book , Pages_ to inclusive. of Parcel Maps, in the office of the Cowty Recorder of Orange County (the NLand'). Owner has executed, or is about to execute, certain loan documents ( -Loan Documents') dated 19 with or in favor of (-Lander') to obtain and evidence a lose (the 'Loan -) from Leader in the amomt of $ The Loan Document> have all been delivered to TIC and Include, without limitation, a Deed of Trust (the 'Deed of Trust') to be recorded concurrently with this Agreement as security for the obligations evidenced by the Loan Documents. Lander is Incurring its obligations in connection with the Loan In good faith and for value pursuant to an agreement with Owner, on which TIC is relying and which is eemorialized In the Loan Documents, that the proceeds of the Loan will be expended solely for financing or refinancing of construction of certain Improvements on the Land, the plans and specifications for which have been, or will, prior to the ccamencement of construction, be approved by TIC, all In accordance with the provisions of the Los. Documents. and far me other purpose unless approved by TIC in writing In its sole discretion. A condition precedent to Larder's agreement to make the Lean Is that the Deed of Trust shall be and remain at *11 time a lien or tharge upon the Land prior and superior to certain enforcement rights and remedies of TIC under the Declaration. TIC and Owner agree that it to to their mutual benefit that Landar make the Loan to Owner. This Agreement is made In canatderation of the mutual benefits agedi WuLtt. OeOlt 1 a "k.ft a MeareewWta It. Im Its: mayor By: ATTEST: Its: APPRGV® AS TO FORM: By: Its: City Attorney esw.lu spvwwu�s m r 2 ampJ{p \!W .yiasllWA )3. . IM ' to TIC and Owner resulting from the )man and for other valuable consideration. the receipt and sufficiency of which is acknowledged by TIC and Oar. III. SOBOBDINATIOB. The Wed of Trust and any removals or extensions thereof shall be and remain at all time a Has or charge on the land prier and superior tm , I Dselaront's right of first refusal contained In Article A of the Declaration and 'J the option to repurchase contained in Section 5.3 of the Declaration. (collectively, the Iftforrommost Rights'); provided. however, that (1) the Declaration (including the Enforcement Rigbta) shall be binding upon and affective against my subsequent Owner or other occupant of the led er any portion thereof whose title is acquired by foreclosure, trustea'e "Is. deed in lieu of foreclosure or otherwise as provided in Section 5.7 of the Declatatian. and (2) any subsequent Owner shall have the Ours rights as provided in Section ' 5.7. Rotwitbstmding anything to the contrary contained in this Agreement. Leader's foreclosure or similar or related proceeding under the Dead of Trust shall not extinguish the Declaration or TIC's Enforcement Rights, all of which shall survive such proceeding and shell be binding upon amy subsequent saner acquiring title free Leader as stated above. TV. MISCBLiAMMS A. Entire Agreement, This Agreement shall be the whole ad only agreement between TIC ad Ovnet with regard to the subordination of TIC's Enforcement Rights and remedies under the Declaration to the lien or charge of the Deed of Trust. B. Attorneys' Fees. The prevailing party in any litigation respecting this Agreamel{t shall be entitled to reimbursement of attorney's fees and costs, whether or set taxable, imcurred in The—litigation. 'TIC' THE IRVINE COMPANY. - CITY OR NBNPORT BEACR a Michigan corporation Its: mayor By: ATTEST: Its: APPRGV® AS TO FORM: By: Its: City Attorney esw.lu spvwwu�s m r 2 ampJ{p \!W .yiasllWA )3. . IM s. r STATE OF CALIFORNIA ) L sa COWNfY OP ) On , 19—,. before m, the underslgnad, a Notary Public in and for said Steil, personally ►ppeersd and personally Worn to m (or proved to m cn the basis of satisfactory evidence) to be the persons who easwted the within instrument as and on behalf of THE IRCINE COMPANY, a Michigan corporation, slid ecb.wledged to m that aafd corporation eaecubd it. WITNESS ay hand aM official seal Notary Public in and for said State STATE OF CAIFORNIA ) ).as COUNTY OF 1 On 19—. before m, the umdereignad, • Notary Public to and for said State, personally appeared personally blown to m (or proved to m on the beets of satisfactory evidence) to be the person ubo executed the within Instrument as Mayor, on behalf of City of Newport Beech, which executed the within Instrument pursuant to governing In and a cesolutian'sf Its board of directors and acknowledged to-me that the City of Newport Beach executed it: -- - . -. WITNESS 'y hand and official goal Notary Public in and for said State epsfLL Ogden W I YOnet,pL 4+�m It. I MI I i '