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HomeMy WebLinkAboutC-8522-1 - Agreement for Purchase and Sale of Real Property and Escrow Instructions for 2807 Newport BlvdAGREEMENT FOR PURCHASE AND SALE OF REAL PROPERTY AND ESCROW INSTRUCTIONS SjG� Escrow No. g2�°1?-O�i2lC ��? lab Date of Opening of Escrow: ,!j__, 201 To: Chicago Title Company ("Escrow Holder") 4041 MacArthur Boulevard Suite 400 Newport Beach, California 92660 Attention: Karen L. Price, National Senior Escrow Officer Telephone: 949-724-3113 THIS AGREEMENT FOR PURCHASE AND SALE OF REAL PROPERTY AND ESCROW INSTRUCTIONS ("Agreement") is made this day of 9� 4;)esember?``n"4y 201? ("Effective Date"), by and between MNG Newport Beach, LLC ("Seller") and City of Newport Beach, a California municipal corporation and charter city ("City"). City and Seller are sometimes hereinafter individually referred to as a "Party" and collectively as the "Parties" to this Agreement. RECITALS: The following Recitals are a substantive part of this Agreement and are incorporated herein: A. City is a municipal corporation duly organized and validly existing under the laws of the State of California with the power to carry on its business as it is now being conducted under the statutes of the State of California and the Charter of City. B. Seller is the owner of that certain real property commonly known as 2807 Newport Boulevard [A.P.N. 047-110-36], located in the City of Newport Beach, County of Orange, State of California, as more particularly described on Exhibit "A" and depicted on Exhibit "B" attached hereto and by this reference incorporated herein, together with all improvements now or hereafter constructed thereon, all easements, licenses and interests appurtenant thereto and all intangible property owned or held by Seller in connection with the such real property, including without limitation, development rights, governmental approvals and land entitlements (collectively referred to herein as the "Property"). C. City has the authority to acquire property for public uses utilizing City's power of eminent domain. In lieu of City's exercise of said power and under the threat thereof, Seller is willing to sell the Property to City and City is willing to purchase the Property from Seller, upon the terms and conditions set forth in this Agreement. Agreement for Purchase and Sale of Real Property and Escrow Instructions Page 1 NOW, THEREFORE, in consideration for the benefits set forth herein and for other good and valuable consideration, the receipt and sufficiency of which is acknowledged, the Parties agree as follows: TERMS AND CONDITIONS 1. PURCHASE AND SALE OF PROPERTY. City hereby agrees to purchase from Seller, and Seller agrees to sell to City the Property, upon the terms and conditions hereinafter set forth. 2. PURCHASE PRICE. The total purchase price for the Property, which includes the value of the land and improvements is FOUR MILLION DOLLARS and 00/100 ($4,000,000.00) ("Purchase Price"). 2.1 Payment of Purchase Price. (a) Not later than five (5) business days following the Opening of Escrow, as defined herein, City shall deposit in Escrow in good funds, the sum of SEVENTY-FIVE THOUSAND DOLLARS and 00/100 ($75,000.00) ("Initial Deposit"), which Initial Deposit shall be applicable to the Purchase Price upon Closing. City shall have the unqualified and unrestricted right to terminate its obligations under this Agreement on or before the expiration of the Due Diligence Period, hereinafter defined. In the event this Agreement is terminated by City on or before the expiration of the Due Diligence Period, the Initial Deposit shall be promptly returned to City. If the City disapproves of any of the due diligence items pursuant to the terms of Section 5, below, the Initial Deposit and Extension Deposit (hereinafter defined), if any, shall remain refundable until all items are approved by City, or this Agreement is terminated by City as specified herein. (b) On or before the Closing Date, hereinafter defined, City shall deposit the balance of the Purchase Price, subject to any other credits or debits hereunder, with Escrow Holder in "good funds." "Good funds" shall mean a wire transfer of funds, cashier's or certified check drawn on or issued by the offices of a financial institution located in the State of California, or cash. 2.2 Interest Bearing Account. Escrow Holder shall deposit the funds specified in Section 2.1 above in an interest bearing account. All interest earned on said funds shall be credited to City. 3. ESCROW. This Agreement constitutes the joint escrow instructions of the City and Seller. Escrow Holder, to whom these instructions are delivered, is hereby empowered to act under this Agreement. 3.1 Opening Of Escrow. Within five (5) business days after the execution of this Agreement, the Parties shall open an escrow ("Escrow") with the Escrow Holder by causing an executed copy of this Agreement to be deposited with Escrow Holder. Agreement for Purchase and Sale of Real Property and Escrow Instructions Page 2 Escrow shall be deemed open on the date that City delivers this executed Agreement to Escrow Holder. The Parties agree to perform all acts reasonably necessary to close Escrow if and when required hereby. 3.2 Escrow Holder Is Authorized To And Shall: (a) Pay and deduct from the Purchase Price any amount necessary to satisfy any delinquent taxes together with penalties and interest thereon, and/or delinquent or non -delinquent assessments or bonds except those which title is to be taken subject to in accordance with the terms of this Agreement; (b) Pay and deduct from the Purchase Price, up to and including the total amount of unpaid principal and interest on note(s) secured by mortgage(s) or deed(s) of trust, if any, and all other amounts due and payable in accordance with terms and conditions of said trust deed(s) or mortgage(s) including late charges, if any, except penalty for payment in full in advance of maturity shall, upon demand(s), be made payable to the mortgagee(s) or beneficiary(ies) entitled there under; (c) Pay and charge Seller for all recording fees incurred in this transaction including payment of reconveyance fees and forwarding fees for partial or full reconveyances of deeds of trust or release or mortgage by Seller; (d) Pay and charge Seller for any escrow fees, charges, and costs payable under Section 7, below; (e) Prorate, as between City and Seller, real estate taxes through the close of escrow, with City to be charged with and have the benefit of the day of the close of escrow. (f) Disburse funds in accordance with this Agreement, and record the Grant Deed in the Official Records of the County Recorder of Orange County, California. 4. ADDITIONAL FUNDS AND DOCUMENTS REQUIRED FROM CITY AND SELLER. 4.1 City. City agrees that on or before 1:00 p.m. on the business day preceding the Closing Date, City will deposit with Escrow Holder all additional funds and/or documents (executed and acknowledged, if appropriate) which are necessary to comply with the terms of this Agreement, including without limitation, the following: (a) The Purchase Price; (b) A Preliminary Change of Ownership Statement completed in the manner required in Orange County; Agreement for Purchase and Sale of Real Property and Escrow Instructions Page 3 (c) Such funds and other items and instruments as may be necessary in order for Escrow Holder to comply with this Agreement. 4.2 Seller. Seller agrees that on or before 1:00 p.m. on the business day preceding the Closing Date, Seller will deposit with Escrow Holder such funds and other items and instruments (executed and acknowledged, if appropriate) as may be necessary in order for the Escrow Holder to comply with this Agreement, including without limitation, the following: (a) A grant deed conveying the Property to City in a form substantially similar to the form as Exhibit "C" attached hereto and incorporated herein by this reference ("Grant Deed"). (b) A Non -Foreign Affidavit on Escrow Holder's Standard form or a form substantially similar thereto ("Non -Foreign Affidavit"); and (c) Such funds and other items and instruments as may be necessary in order for Escrow Holder to comply with this Agreement. Escrow Holder will cause the Grant Deed to be recorded when (but in no event after the date specified in Section 6.1 below) it can issue the Title Policy in the form described in Section 7 below, and will hold for the account of Seller the items described above to be delivered to Seller through Escrow, less costs, expenses and disbursements chargeable to Seller pursuant to the terms hereof. 4.3 Assignment of Contracts. On or before five (5) business days following the opening of Escrow, Seller shall deliver to City copies of all contracts affecting the Property, including any lease affecting the Property ("Existing Lease"). City shall notify Seller on or before the Due Diligence Date of City's approval or disapproval of each contract. Seller shall terminate any contract disapproved by City. City's failure to notify Seller within the time specified shall be considered disapproval. As to those contracts City elects to assume, Seller shall assign same in a form agreed upon by the Parties. As to those contracts City does not elect to assume, Seller shall terminate and otherwise remain responsible for same after close of Escrow. 4.4 Miscellaneous Documents. On or before five (5) business days following the opening of Escrow, Seller shall deliver to City all documents relating to the Property which Seller may have in its possession including but not limited to copies of all Phase I and Phase II Environmental Reports, together with engineering reports, surveys, soils studies, environmental audits and reports, environmental impact report, and all other third -party documents relating to the Real Property (other than appraisals and market studies) for City's review and approval. City shall notify Seller on or before the Due Diligence Date of City's approval or disapproval of each item. City's failure to notify Seller within the time specified shall be considered disapproval. If City does not acquire the Property, all said documents shall be promptly returned to Seller. In addition, Seller shall deliver to City (or cause Escrow Holder to deliver to City), natural hazard Agreement for Purchase and Sale of Real Property and Escrow Instructions Page 4 disclosure reports covering the Property in such form as required by law, which shall be countersigned and returned to Seller and Escrow Holder. 4.5 Estoppel Certificate. In the event the Property is subject to an Existing Lease as of the Closing (i.e., in the event the existing tenant holds over), at least ten (10) calendar days prior to the Closing Date, Seller shall have delivered to Escrow Holder an original Estoppel Certificate, and to City, copies thereof, dated within forty-five (45) calendar days of the Closing Date, from the tenant under an Existing Lease. Such Estoppel Certificate shall be in a form to be provided by City within two (2) business days following delivery of notice by Seller to City that the tenant under the Existing Lease is holding over and shall be reasonably approved by Seller. Seller shall use its best efforts to obtain such Estoppel Certificate from the tenant under an Existing Lease and Seller shall provide a Seller's estoppel in the event Seller is unable to obtain such Estoppel Certificate from the tenant under an Existing Lease, provided, however, that City shall not be required to complete its purchase unless Seller obtains an Estoppel Certificate. The failure of Seller to obtain the Estoppel Certificates as set forth in this Section 4.5 shall not constitute a breach of this Agreement by Seller if such certificate is not procured despite Seller's best efforts, but shall entitle City to terminate this Agreement. 5. DUE DILIGENCE PERIOD. 5.1 Inspection Rights. At City's own cost and expense, it may make an independent investigation of the Property and all other aspects of this transaction, and may rely thereon and on the advice of its consultants in entering into and terminating this Agreement. 5.2 City Inspection. Commencing upon the Opening of Escrow and continuing thereafter for thirty (30) calendar days ("Due Diligence Period"), City, its agents, and employees shall: (a) examine and inspect the Property and will know and be satisfied with the physical condition, quality, quantity and state of repair of the Property in all respects; (b) review all instruments, records and documents which City deems appropriate or advisable to review in connection with this transaction, including, but not by way of limitation, any and all plans, specifications, surveys, environmental assessments, existing leases and/or easement documents reports, and title reports; and (c) review all applicable laws, ordinances, rules and governmental regulations (including those relating to building, zoning and land use) affecting the development, use, occupancy or enjoyment of the Property; Agreement for Purchase and Sale of Real Property and Escrow Instructions Page 5 5.3 Approval of Property After Inspection. On or before the expiration of the Due Diligence Period, City may notify Escrow, in writing, of its approval of all inspections conducted pursuant to Section 5.2. Should City fail to provide written notice of its election to approve each inspection conducted pursuant to Section 5.2, City shall be conclusively determined to have disapproved the condition of the Property, thereby terminating this Agreement and neither City nor Seller shall have any further obligations to the other, except for those obligations, which as outlined in this Agreement, expressly survive termination. 5.4 Entry for Investigation. Subject to the conditions hereafter stated and the rights of tenants in possession, Seller grants to City, its agents, employees, and consultants a limited license to enter upon any portion of the Property for the purpose of conducting engineering surveys, soil tests, investigations or other studies reasonably necessary to evaluate the condition of the Property, which studies, surveys, investigations and tests shall be done at City's sole cost and expense. City shall (a) notify Seller prior to each entry of the date and purpose of intended entry and provide to Seller the names and affiliations of the persons entering the Property; (b) conduct all studies in a diligent, expeditious and safe manner and not allow any dangerous or hazardous conditions to occur on the Property during or after such investigation; (c) comply with all applicable laws and governmental regulations; (d) keep the Property free and clear of all materialmen's liens, lis pendens and other liens arising out of the entry and work performed under this paragraph; (e) maintain or assure maintenance of workers' compensation insurance (or state approved self-insurance) on all persons entering the property in the amounts required by the State of California; (f) provide to Seller prior to initial entry a certificate of insurance evidencing that City has procured and paid premiums for an all-risk public liability insurance policy written on a per occurrence and not claims made basis in a combined single limit of not less than TWO MILLION DOLLARS ($2,000,000.00) which insurance names Seller as additional insured entitled to not less than thirty (30) days cancellation notice and is primary and non-contributing with insurance carried by Seller, covering the actions of City, its employees, agents, and independent contractors; and (g) return the Property to its original condition following City's entry. City agrees to indemnify, defend, protect and hold Seller and the Property free and harmless from any and all loss, liability, claims, damages and expenses (including but not limited to attorneys' fees and costs) arising directly or indirectly from the exercise of said license, or from City's failure to comply with the conditions to City's entry onto the Property provided herein. Such undertaking of indemnity shall survive Close of Escrow or the termination of this Agreement for any reason. The limited license herein granted shall be co -extensive with the term of this Agreement or any extension thereof. 6. CLOSING DATE. 6.1 Initial Closinq Date. Escrow shall close on or before fifteen (15) calendar days from the expiration of the Due Diligence Period ("Closing Date"). The terms "the Close of Escrow", and/or the "Closing" are used herein to mean the time Seller's Grant Deed is filed for record by the Escrow Holder in the Office of the County Recorder of Agreement for Purchase and Sale of Real Property and Escrow Instructions Page 6 Orange County, California. City and Seller each specifically agrees to strictly comply and perform its obligations herein in the time and manner specified and waives any and all rights to claim such compliance by mere substantial compliance with the terms of this Agreement. 6.2 City shall have the right to extend the Closing Date by thirty (30) calendar days ("Extension"), provided City has approved in writing its due diligence investigation pursuant to Section 5.3 above and delivers to Escrow Holder the sum of FIFTY THOUSAND AND 00/100 DOLLARS ($50,000.00) ("Extension Deposit"), which amount shall be applicable to the Purchase Price and shall be deemed consideration for such extension. The Extension Deposit shall be promptly returned to City, if Seller fails to satisfy any of the conditions specified in Section 8.1, below, and those conditions are not waived by City in writing prior to Closing. 6.3 Distribution of Documents. Following Close of Escrow, Escrow Holder shall distribute the documents as follows: (a) To City: (i) One certified conformed copy of the Grant Deed, the original to be mailed to City following recordation thereof; (ii) One duplicate original each of the Bill of Sale, the Assignment of Lease (if any), the Assignment of Contracts and the Non - Foreign Affidavit; and (iii) One certified copy, conformed if recorded, of any other document delivered to Escrow Holder by City or Seller pursuant to the terms hereof. (b) To Seller: (i) One duplicate original each of the Bill of Sale, the Assignment of Lease (if any), the Assignment of Contracts and the Non - Foreign Affidavit; and (ii) One certified copy, conformed if recorded, of any other document delivered to Escrow Holder by City or Seller pursuant to the terms hereof. 7. TITLE POLICY. 7.1 Approval of Title. Following execution of this Agreement but in no event later than five (5) calendar days following opening of Escrow, Seller shall deliver to City a preliminary title report issued through Chicago Title Company ("Title Company"), describing the state of title of the Property, ("Preliminary Title Report") together with Agreement for Purchase and Sale of Real Property and Escrow Instructions Page 7 copies of all exceptions specified therein. City shall notify Seller in writing of any objections City may have to title exceptions or other matters ("Disapproved Exceptions") contained in the Preliminary Title Report within fifteen (15) calendar days after City's receipt of the Preliminary Title Report ("City's Objection Notice"). If City fails to deliver City's Objection Notice within said fifteen (15) calendar day period, City shall be conclusively deemed to have approved the Preliminary Title Report and all matters shown thereon. In the event City delivers City's Objection Notice within said period, Seller shall have a period of ten (10) calendar days after receipt of City's Objection Notice in which to notify City of Seller's election to either (i) agree to remove the Disapproved Exceptions prior to the Close of Escrow; or (ii) decline to remove any such Disapproved Exceptions ("Seller's Notice"). Seller shall only elect to decline to remove Disapproved Exceptions which Seller in good faith believes Seller's reasonable efforts would not result in removal or as to which removal would result in cost or expense to Seller other than nominal administrative expense incurred in the process of removal. Seller's failure to deliver Seller's Notice within said ten (10) calendar day period shall be deemed Seller's election to decline to remove the Disapproved Exceptions. If Seller notifies City of its election to decline to remove the Disapproved Exceptions, if Seller is deemed to have elected to decline to remove the Disapproved Exceptions or if Seller is unable to remove the Disapproved Exceptions, City may elect either to terminate this Agreement and the Escrow or to accept title to the Property subject to the Disapproved Exception(s). City shall exercise such election by delivery of written notice to Seller and Escrow Holder within fifteen (15) calendar days following the earlier of (i) the date of written advise from Seller that such Disapproved Exception(s) cannot be removed; or (ii) the date Seller declines or is deemed to have declined to remove such Disapproved Exception(s). If City fails to deliver said written notice of termination of this Agreement and the Escrow within said fifteen (15) calendar day period, City's disapproval of the Disapproved Exception(s) shall be deemed waived and City shall deemed to have agreed to accept title to the Property subject to the Disapproved Exception(s). Upon the issuance of any amendment or supplement to the Preliminary Title Report which adds additional exceptions, the foregoing right of review and approval shall also apply to said amendment or supplement, provided, however, that City's initial period of review and approval or disapproval of any such additional exceptions shall be limited to ten (10) calendar days following receipt of notice of such additional exceptions. 7.2 Title Policy to be Issued to City. When Escrow Holder holds for City the Grant Deed in favor of City executed and acknowledged by Seller covering the Property, Escrow Holder shall cause to be issued and delivered to City and Seller as of the Closing a CLTA standard coverage policy of title insurance ("Title Policy"), or, upon City's request therefor, an ALTA standard coverage policy of title insurance, issued by Title Company, with liability in the amount of the Purchase Price, covering the Property and showing title vested in City free of encumbrances, except: (a) All nondelinquent general and special real property taxes and assessments for the current fiscal year; Agreement for Purchase and Sale of Real Property and Escrow Instructions Page 8 (b) Easements, encumbrances, covenants, conditions, restrictions, reservations, rights-of-way and other matters of record, as approved or deemed approved by City pursuant to Section 7.1 above; (c) The standard printed exceptions and exclusions contained in the CLTA or ALTA form policy; and (d) Any exceptions created or consented to by City, including without limitation, any exceptions arising by reason of City's possession of or entry on the Property. 8. CONDITIONS PRECEDENT TO CLOSE OF ESCROW. (a) 8.1 Conditions to City's Obligations. The obligations of City under this Agreement shall be subject to the satisfaction or written waiver, in whole or in part, by City of each of the following conditions precedent: Seller has delivered all documents required to be delivered under Section 4.2 above. (b) All representations and warranties specified in Section 10.1 are true and correct in all material respects. (c) City's written approval of any other conditions specified in this Agreement. (d) Title Company has issued the Title Policy as required by Section 7 of this Agreement insuring title to the Property vested in City or other vestee designated by City for vesting purposes only. 8.2 Conditions to Seller's Obligations. The obligations of Seller under this Agreement shall be subject to the satisfaction or written waiver, in whole or in part, by Seller of each of the following conditions precedent: (a) Escrow Holder holds and will deliver to Seller the instruments and funds, if any, accruing to Seller pursuant to this Agreement. 8.3 Return of Initial Deposit. In the event Seller fails to satisfy any of the conditions specified in Section 8.1, above, such conditions remain unsatisfied after two (2) business days' notice, and those conditions are not waived by City in writing prior to Closing, the Initial Deposit and Extension Deposit, if any, shall be promptly returned to City and this Agreement shall be terminated pursuant to the terms of Section 9.5 below. 9. ESCROW PROVISIONS. 9.1 Escrow Instructions. This Agreement, when signed by City and Seller, shall also constitute escrow instructions to Escrow Holder. If required by Escrow Holder, Agreement for Purchase and Sale of Real Property and Escrow Instructions Page 9 City and Seller agree to execute Escrow Holder's standard escrow instructions, provided that the same are consistent with and do not conflict with the provisions of this Agreement. In the event of any such conflict, the provisions of this Agreement shall prevail. 9.2 General Escrow Provisions. Escrow Holder shall deliver the Title Policy to the City and instruct the Orange County Recorder to mail the Grant Deed to City at the address set forth in Section 28 after recordation. All funds received in this Escrow shall be deposited in one or more general escrow accounts of the Escrow Holder with any bank doing business in Orange County, California, and may be disbursed to any other general escrow account or accounts. All disbursements shall be made by Escrow Holder's check. This Agreement and any modifications, amendments, or supplements thereto may be executed in counterparts and shall be valid and binding as if all of the Parties' signatures were on one (1) document. 9.3 Proration of Real Property Taxes. All nondelinquent general and special real property taxes shall be prorated to the Close of Escrow on the basis of a thirty (30) day month and a three hundred sixty day (360) year. In the event that property taxes are assessed on a parcel of real property which includes land other than the Property, such proration shall include only taxes attributable to the Property, calculated in terms of total gross square feet of land assessed pursuant to the tax statement versus total gross square footage of the Property. Any supplemental tax bills received after Close of Escrow shall be paid by Seller to the extent they relate to a period prior to Close of Escrow, and by City, to the extent they relate to a period after Close of Escrow. If a supplemental tax bill covers a period commencing before and continuing after Close of Escrow, the party named in the bill will pay the tax and the other party shall reimburse the first party its pro rata share within thirty (30) calendar days after receipt of a copy of the tax bill and evidence of the second party's payment of same. The provisions of this Section 9.3 shall survive Close of Escrow. If either party fails to pay its pro rata share of taxes by the times herein provided, interest shall accrue on all unpaid amounts from when owing until paid at five percent (5%) over the Federal Discount Rate quoted by the Federal Reserve Bank of San Francisco on the 25th day of the month preceding the date interest commences to accrue. Rents of the tenants under an Existing Lease, if any, shall be prorated to the Closing Date based on rents actually collected. Any such rents collected after the Closing Date by City which are attributable to the period prior to the Closing Date shall be paid to Seller upon collection. Rents collected after the Closing Date from tenants whose rental was delinquent at Closing and/or constituting reimbursements for operating expenses paid by Seller shall be deemed to first apply to costs of collecting such rents, second to rents which accrued after the Closing and third to rentals accruing prior to the Closing Date. City shall have no obligation to commence litigation or to collect rents or to terminate the tenant's right to occupancy based upon tenant's failure to pay rentals which were delinquent at Closing and/or such reimbursements; however, City shall use reasonable efforts to collect such delinquent rents and shall reasonably and in good faith cooperate with Seller's attempts to collect such rents at no cost or expense to City. Agreement for Purchase and Sale of Real Property and Escrow Instructions Page 10 9.4 Payment of Costs. Seller shall pay one-half (1/2) of the Escrow fee, title insurance premiums for that portion of the Title Policy premium which would be incurred for a CLTA form policy, and the charge for drawing the Grant Deed. City shall pay the one-half (1/2) of the Escrow fee, charges for recording the Grant Deed, and that portion of the Title Policy premium which is attributable to the additional cost of obtaining any additional coverage requested by City, including the difference between CLTA and ALTA coverage. All other costs of Escrow not otherwise specifically allocated by this Agreement shall be apportioned between the parties in a manner consistent with the custom and usage of Escrow Holder. This transaction is exempt from payment of documentary transfer taxes. 9.5 Termination and Cancellation of Escrow. Time is of the essence of this Agreement. If Escrow fails to close as provided above, Escrow shall terminate automatically without further action by Escrow Holder or any Party, and Escrow Holder is instructed to return all funds and documents then in Escrow to the respective depositor of the same with Escrow Holder. Cancellation of Escrow, as provided herein, shall be without prejudice to whatever legal rights City or Seller may have against each other arising from the Escrow or this Agreement. 9.6 Information Report. The "Reporting Person" within the meaning of Treasury Regulation Section 1.6045-4(e)(5) with respect to the transactions contemplated by this Agreement shall be Escrow Holder. It is agreed that Escrow Holder is an eligible person under Section 1.6045-4(e)(5)(ii) of said Regulations. Escrow Holder hereby agrees to be responsible for complying with the reporting and other requirements of Internal Revenue Code Section 6045(e) and the income tax regulations promulgated thereunder. Pursuant to said regulations, the address for the transferor and transferee are as set forth for Seller and City below, and the identifying information regarding the real estate transferred is the legal description for the Property set forth herein. Escrow Holder agrees to file the form required by said regulations between the end of the calendar year in which the Close of Escrow occurs and February 28 of the following calendar year. City and Seller agree (i) to cooperate with Escrow Holder and with each other in completing any report and/or other information required to be delivered to the Internal Revenue Service pursuant to Internal Revenue Code Section 6045(e) regarding the real estate sales transaction contemplated by this Agreement, including without limitation, Internal Revenue Service Form 1099-S as such may be hereinafter modified or amended by the Internal Revenue Service, or as may be required pursuant to any regulation now or hereinafter promulgated by the Treasury Department with respect thereto; (ii) that City and Seller, their respective employees and attorneys, and Escrow Holder and its employees may disclose to the Internal Revenue Service, any information regarding the Option Agreement, this Agreement or the transaction contemplated herein as such party reasonably deems to be required to be disclosed to the Internal Revenue Service by such party pursuant to Internal Revenue Code Section 6045(e); (iii) that neither City nor Seller shall seek to hold any such party liable for the disclosure to the Internal Revenue Service of any such information; and (iv) to retain this Agreement for at least four (4) years following the close of the calendar year in which the Close of Escrow occurs. Agreement for Purchase and Sale of Real Property and Escrow Instructions Page 11 9.7 Maintenance Obligations Prior to Close of Escrow. Seller agrees to maintain the Property in the same or substantially similar condition as it exists as of the Effective Date of this Agreement. Seller further agrees to keep the Property free from unauthorized occupation, graffiti, and accumulation of debris or waste material. 10. REPRESENTATIONS AND WARRANTIES. 10.1 Representations and Warranties. Seller hereby makes the following representations and warranties to City, each of which (i) is material and relied upon by City in making its determination to enter into this Agreement; (ii) is true in all respects as of the date hereof and shall be true in all respects on the date of Close of Escrow on the Property; and (iii) shall survive the Close of Escrow of the purchase and sale of the Property' as well as any future transfer of the Property to City or any transferee, successor or assignee of City: (a) Seller has received no notice or has no actual knowledge that any governmental authority or any employee or agent thereof considers any construction of the proposed improvements on the Property or the proposed operation, use or ownership of the Property to violate or have violated any ordinance, rule, law, regulation or order of any government or agency, body or subdivision thereof, or that any investigation has been commenced or is contemplated respecting such possible violations. (b) There are no pending or threatened litigation, allegations, lawsuits or claims, whether for personal injury, property damage, landlord -tenant disputes, property taxes, contractual disputes or otherwise, which do or may affect the Property or the operation or value thereof, and there are no actions or proceedings pending or, to the best of Seller's knowledge, threatened against Seller before any court or administrative agency in any way connected with the Property and neither the entering into of this Agreement nor the consummation of the transactions contemplated hereby will constitute or result in a violation or breach by Seller of any judgment, order, writ, injunction or decree issued against or imposed upon it. There is no action, suit, proceeding or investigation pending or threatened against Seller which would become a cloud on City's title to and have a material adverse impact upon the Property or any portion thereof or which questions the validity or enforceability of the transaction contemplated by this Agreement or any action taken pursuant hereto in any court or before or by any federal, district, county, or municipal department, commission, board, bureau, agency or other governmental instrumentality. (c) There are no contracts, leases, claims or rights affecting the Property and no agreements entered into by or under Seller shall survive the Close of Escrow that would adversely affect City's rights with respect to the Property except as heretofore disclosed in writing by Seller to City or disclosed in the Preliminary Title Report; for avoidance of doubt, Seller has disclosed its Agreement for Purchase and Sale of Real Property and Escrow Instructions Page 12 predecessor in interest's Excess Sale Contract with McDonald's USA LLC dated December 14, 2015, and executed January 12, 2016, which Excess Sale Contract reflects an executory obligation to demolish the Property's building. (d) Seller has the unimpeded power and authority to execute, deliver and perform Seller's obligations under this Agreement and the documents executed and delivered by Seller pursuant hereto. (e) Seller is not a "foreign person" within the meaning of Section 1445 of the Internal Revenue Code of 1986, as amended. All representations and warranties made hereunder are in addition to any representations and warranties implied by law and in no event shall this Section 10.1 be construed to limit, diminish or reduce any obligation of disclosure implied upon Seller by law. The representations and warranties of Seller set forth in Section 10.1 hereof shall survive Closing for a period of six months. Seller shall have no liability to City for a breach of any representation or warranty unless written notice (the "Breach Notice") containing a description of the specific nature of such breach shall have been given by City to Seller prior to the expiration of said six month period and an action shall have been commenced by City against Seller within thirty (30) calendar days following the expiration of such six month period ("Outside Date"). 10.2 Disclaimer of Representations and Warranties. City acknowledges that as of expiration of the Due Diligence Period it will have had an adequate opportunity to inspect the Property and to investigate its physical characteristics and conditions. Upon the Close of Escrow, City shall be deemed to have waived any and all objections to the physical characteristics and conditions of the Property which would be disclosed by a reasonable and diligent inspection. City acknowledges that, except as specifically provided herein, neither Seller nor any of its employees, agents, or representatives has made any representations, warranties or agreements to or with City on behalf of Seller as to any matters concerning the Property, the present use thereof, or the suitability of City's intended use of the Property. The foregoing disclaimer includes, without limitation, topography, climate, air, water rights, utilities, present and future zoning, soil, subsoil, the acreage of the Property or square footage of buildings located thereon, the purpose to which the Property is suited, drainage, and access to public roads. City further acknowledges and agrees that the Property is to be purchased, conveyed, and accepted by City in its present condition, "AS -IS," and that no patent or latent physical condition of the Property, whether or not known or discovered, shall affect the rights of either party hereto. City has investigated and has knowledge of operative or imposed governmental laws and regulations (including, but not limited to, zoning, environmental, including specifically the regulations of the Environmental Protection Agency, and land use laws and regulations) to which the Property may be subject, and is acquiring the Property on the basis of its review and determination of the application and effect of such laws and regulations. City has neither received nor relied upon any representations concerning Agreement for Purchase and Sale of Real Property and Escrow Instructions Page 13 such laws and regulations made by Seller, Seller's employees, agents, or any other person acting on behalf of Seller. Any agreements, warranties or representations not expressly contained in this Agreement shall in no way bind Seller. CITY AND SELLER ACKNOWLEDGE AND AGREE THAT THE FOREGOING PROVISIONS OF THIS SECTION 10 HAVE BEEN FREELY BARGAINED FOR BY THE PARTIES AND CONSTITUTES A MATERIAL CONSIDERATION TO SELLER FOR THE SALE OF THE PROPERTY AND BUT FOR THIS PROVISION SELLER WOULD NOT SELL THE PROPERTY TO CITY. SlFftE'SNITIALS bTN4S INITIALS 10.3 Changed Circumstances. If Seller becomes aware of any fact or circumstance which would change or render incorrect, in whole or in part, any representation or warranty made by Seller under this Agreement, whether as of the date given or any time thereafter until the Close of Escrow and whether or not such representation or warranty was based upon Seller's knowledge and/or belief as of a certain date, Seller will give immediate written notice of such changed fact or circumstance to City, but such notice shall not release Seller of its liabilities or obligations with respect thereto. Seller shall issue a certificate as of the Close of Escrow stating that all the representations and warranties contained in Section 10.1 are true and correct as of said date, or setting forth in detail which of such matters are not true and correct. 11. INDEMNITY BY SELLER. 11.1 Seller shall hold harmless, indemnify and defend City, and the Property from and against (i) any and all obligations, liabilities, claims, liens or encumbrances to the extent the same are within the scope of coverage under any title policy issued for the Property, whether direct, contingent or consequential, no matter how arising and in any way related to the Property and arising or accruing on or before the date first above written; (ii) any and all obligations, liabilities, claims, liens or encumbrances (including those, if any, reflected by the Preliminary Title Report unless otherwise waived or approved by City pursuant to Section 7, above), whether or not covered under any title policy and whether the same are direct, contingent or consequential and no matter how arising and in any way related to the Property and arising or accruing from or after Seller's acquisition of the Property until the date first above written, or in any way related to or arising from any act, conduct, omission, contract or commitment of Seller, including, without limitation, any contract disclosed pursuant to Section 10.1, above, which occurred or was entered into at any time or times on or before the date of the Close of Escrow, which in any way relates to the Property, including without limitation, any commitment or obligation of Seller, contractual or otherwise, to any third party, any damage to the Property, or injury to or death of any person, employees or agents of Seller, except for obligations, liabilities, claims, liens and encumbrances disclosed Agreement for Purchase and Sale of Real Property and Escrow Instructions Page 14 herein or which City specifically agrees by the terms of this Agreement to assume or take subject to; (iii) any loss or damage to City resulting from any material inaccuracy or material breach of any representation or warranty of Seller or resulting from any breach or default by Seller under this Agreement, or any other agreements relating to this transaction; and (iv) all costs and expenses, including attorneys' fees, relating to any actions, suits or judgments incident to any of the foregoing. Seller's indemnification obligations identified in Sections 11.1(1), (ii), (iii), and (iv), above, are hereafter collectively referred to as the "Indemnification Claims." As a condition to the Seller's obligation to provide indemnification hereunder, (a) City will give written notice to Seller of any Indemnification Claim actually brought stating in reasonable detail the basis for which indemnification is being sought hereunder as soon as reasonably possible after City's knowledge thereof ("Indemnification Notice"); provided, however, City's failure to provide such Indemnification Notice to Seller will not relieve Seller of or from any of its obligations hereunder unless and only to the extent that Seller suffers prejudice as a result of such failure; provided, further, however, and notwithstanding anything in this Agreement to contrary, Seller's indemnification obligationsshall expire only upon the expiration of any applicable statute of limitations of any claim brought or able to be brought under this Section 11. Should Seller fail to discharge or undertake to defend City against an Indemnification Claim where City provides Indemnification Notice pursuant to this Section 11, then City may settle such Indemnification Claim and Seller's liability to City shall be conclusively established by such settlement, the amount of such liability to include both the settlement consideration and the reasonable expenses, including attorney's fees, incurred by City in effecting such settlement. Seller shall otherwise have the right to control and direct the investigation, preparation, defense, trial and settlement of each such Indemnification Claim and City shall reasonably cooperate in the defense of such claim and shall furnish such records, information and testimony and attend to such proceedings as may be reasonably requested in connection therewith provided Seller has received City's prior written consent, which consent shall not be unreasonably withheld or delayed. Seller shall make no admission or settlement of any such Indemnification Claim which would give rise to liability on the part of City without its prior written consent, which consent shall not be unreasonably withheld or delayed. 12. SETTLEMENT OF CLAIMS. 12.1 Release of Claims by Seller. In exchange for the promises contained in this Agreement, and except as to the obligations provided for in this Agreement, Seller hereby waives, releases and forever discharges, and agrees to the extent permitted by law that he will not in any manner institute, prosecute or pursue, any and all complaints, charges, claims for relief, demands, damages, suits, actions or causes of action, of any kind, whether in law or in equity, which he asserts or could assert, at common law or under any statute, rule, regulation, order or law, whether federal, state or local, or on any grounds whatsoever, against the City and/or any of its current or former officers, councilmen, agents, representatives, employees, successors and assigns with respect to any event, matter, claim, damage or injury, of any kind related to the Property as of the date of this Agreement and/or the Closing. Agreement for Purchase and Sale of Real Property and Escrow Instructions Page 15 12.2 Release of Claims by City. In exchange for the promises contained in this Agreement, and except as to the representations and warranties expressly made by Seller contained in this Agreement that survive the Closing, effective upon the Closing, City hereby waives, releases and forever discharges, and agrees to the extent permitted by law that it will not in any manner institute, prosecute or pursue, any and all complaints, charges, claims for relief, demands, damages, suits, actions or causes of action, of any kind, whether in law or in equity, which it asserts or could assert, at common law or under any statute, rule, regulation, order or law, whether federal, state or local, or on any grounds whatsoever, against the other Parties and/or any of its or their current or former owners, trusts, trustees, officers, directors, shareholders, affiliates, agents, representatives, employees, attorneys, successors, predecessors, insurers, and assigns with respect to any event, matter, claim, damage or injury of any kind related to the Property, including without limitation the condition of the Property. 12.3 Waiver of Unknown Claims. With respect to the subject matter of this Agreement, including, but not limited to the Property, it is agreed and understood that the releases being provided by each of the Parties above apply to all injuries and damages, whether now known or unknown, and whether now existing or which may result in the future due to the actions or omissions of the Parties on or before the Effective Date. With respect to the subject matter of this Agreement, the Parties acknowledge that they have each been fully advised of and understand the provisions of Section 1542 of the California Civil Code which reads: "A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing this release, which if known by him or her must have materially affected his or her settlement with the debtor. " In further consideration of the promises and payments pursuant to this Agreement, each Party agrees to, and does hereby, waive and relinquish all rights afforded to him, her or it under California Civil Code Section 1542, or any similar law of any State or territory of the United States or other jurisdiction with respect to the matters of this Agreement. Notwithstanding the above, nothing in this Agreement shall be deemed to waive or release any Party as to any of its obligations or rights under this Agreement. The foregoing provisions shall survive the Closing hereunder and the recordation of the deed. 4�� SELLER'SNI IALS CITY'S INITIALS 13. DAMAGE, DESTRUCTION AND CONDEMNATION. Agreement for Purchase and Sale of Real Property and Escrow Instructions Page 16 13.1 Risk of Physical Loss. Risk of physical loss to the Property shall be borne by Seller prior to the Close of Escrow and by City thereafter. In the event the Property shall be damaged by fire, flood, earthquake or other casualty, City shall complete the acquisition of the Property and Seller shall assign to City the interest of Seller in all insurance proceeds relating to such damage. Seller shall maintain property insurance against all risks of loss (excluding flood and earthquake)." 13.2 Condemnation. In the event that, prior to the Close of Escrow, any governmental entity shall commence any actions of eminent domain or similar type proceedings to take any portion of the Property, City shall have the option either to (i) elect not to acquire the Property, or (ii) complete the acquisition of the Property, in which case City shall be entitled to all the proceeds of such taking. 14. THREAT OF CONDEMNATION. City's purchase of the Property is in contemplation of the use of the Property for public purposes. This negotiated acquisition arose during City's investigations of the acquisition of the Property through eminent domain. City has the authority to acquire property by eminent domain for public purposes. Seller has agreed to enter into this Agreement with City under the threat of City's exercise of its power of eminent domain. In the event this negotiated sale did not occur, subject to and pending its completion of the necessary statutory procedures set forth in Government Code Section 7267 et seq., and Code of Civil Procedure Section 1230.010 et seq., City's staff was prepared to have taken the steps thereunder to seek authorization from the City Council, and staff was prepared to recommend to the City Council initiation of the steps, to acquire the Property for public purposes pursuant to Government Code Section 7267 et seq., and Code of Civil Procedure Section 1230.010 et seq., including providing notice to Seller of its opportunity to be heard and to agendize, consider, and take action on a resolution of necessity under Code of Civil Procedure Section 1245.230 et seq. Nothing herein is intended to be, or serve as, any tax advice from City to Seller, and Seller is not in any way construing or relying on any communications or advice by City, or City's representations herein, in any way as any type of tax advice or opinion. Upon request, City shall provide Seller with a letter, separate and apart from this Agreement, restating the foregoing. 15. POSSESSION. Possession of the Property shall be delivered to City as of Close of Escrow. In the event any personal property remains on the Property following the Close of Escrow, it shall automatically become the property of City. 16. ENVIRONMENTAL CONDITION. To Seller's actual knowledge, but without duty of investigation, Seller, as of the Effective Date, is not required by any applicable laws and governmental regulations to take any action to remediate any environmental condition affecting the Property. 17. ASSIGNMENT. City shall not have the right to assign this Agreement or any interest or right hereunder or under the Escrow or to nominate another party to take title to the Property without the prior written consent of Seller, which Seller may withhold Agreement for Purchase and Sale of Real Property and Escrow Instructions Page 17 in Seller's sole discretion. In no event shall City be released of liability in the event of an assignment or nomination. 18. AFFIXATION OF REVENUE STAMPS. Escrow Holder is hereby specifically instructed to attach documentary transfer and/or revenue stamps to the Grant Deed only after recordation of the Grant Deed. 19. COOPERATION. City and Seller agree to cooperate with one another, at no cost or expense to the cooperating party, in satisfying the conditions to Close of Escrow. City shall be responsible for proceeding with diligence and in good faith to satisfy the conditions, if any, to City's performance set forth in Section 8.1 and Seller shall be responsible for proceeding with diligence and in good faith to satisfy the conditions, if any, to Seller's performance set forth in Section 8.2. 20. QUALIFICATION; AUTHORITY. Each Party represents and warrants that it is duly formed, is authorized to do business in the state in which the Property is located and that it has been duly authorized to enter into and perform this Agreement. 21. NO ATTORNEYS' FEES. In any action between the Parties hereto seeking enforcement of any of the terms and provisions of this Agreement or the Escrow, or in connection with the Property, the prevailing Party in such action shall not be entitled to have and to recover from the other Party its reasonable attorneys' fees and other expenses and costs in connection with such action or proceeding. 22. INTERPRETATION; GOVERNING LAW. This Agreement shall be construed according to its fair meaning and as if prepared by both Parties hereto. This Agreement shall be construed in accordance with the laws of the State of California in effect at the time of the execution of this Agreement. Titles and captions are for convenience only and shall not constitute a portion of this Agreement. As used in this Agreement, masculine, feminine or neuter gender and the singular or plural number shall each be deemed to include the others wherever and whenever the context so dictates. 23. NO WAIVER. No delay or omission by either Party hereto in exercising any right or power accruing upon the compliance or failure of performance by the other Party hereto under the provisions of this Agreement shall impair any such right or power or be construed to be a waiver thereof. A waiver by either Party hereto of a breach of any of the covenants, conditions or agreements hereof to be performed by the other Party shall not be construed as a waiver of any succeeding breach of the same or other covenants, agreements, restrictions or conditions hereof. 24. MODIFICATIONS. Any alteration, change or modification of or to this Agreement, or any time limits contained herein, in order to become effective, shall be made by written instrument or endorsement thereon and in each such instance executed on behalf of each Party hereto. Agreement for Purchase and Sale of Real Property and Escrow Instructions Page 18 25. SEVERABILITY. If any term, provision, condition or covenant of this Agreement or the application thereof to any Party or circumstances shall, to any extent, be held invalid or unenforceable, the remainder of this instrument, or the application of such term, provision, condition or covenant to persons or circumstances other than those as to whom or which it is held invalid or unenforceable, shall not be affected thereby, and each term and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law. 26. COVENANTS TO SURVIVE ESCROW. The covenants and agreements contained herein shall survive the Close of Escrow and, subject to the limitations on assignment contained in Section 17 above, shall be binding upon and inure to the benefit of the Parties hereto and their representatives, heirs, successors and assigns. 27. NO WITHHOLDING BECAUSE NON -FOREIGN SELLER Seller represents and warrants to City that Seller is not, and as of the Close of Escrow will not be, a foreign person within the meaning of Internal Revenue Code Section 1445 and that it will deliver to City on or before the Close of Escrow the Non -Foreign Affidavit as described hereinabove, pursuant to Internal Revenue Code Section 1445(b)(2) and the Regulations promulgated thereunder. 28. TIME IS OF THE ESSENCE. Time is hereby expressly made of the essence of this Agreement. 29. EXECUTION IN COUNTERPART. This Agreement may be executed in several counterparts, and all so executed shall constitute one (1) agreement binding on all Parties hereto, notwithstanding that all Parties are not signatories to the original or the same counterpart. 30. NOTICES. Any notice which either Party may desire to give to the other Party or to the Escrow Holder must be in writing and shall be effective upon delivery if sent via overnight mail with tracking; upon delivery, if delivered by confirmed facsimile or email (with a backup sent by first class mail); when personally delivered, if sent postage prepaid by registered or certified mail, return receipt requested; three (3) business days after deposit in the United States mail, registered, certified, postage fully prepaid and addressed to the respective Parties as set forth below or to such other address and to such other persons as the Parties may hereafter designate by written notice to the other Parties hereto: To Seller: MNG Newport Beach, LLC Attn: Daron Young 9171 Towne Centre Drive Suite 335 San Diego, CA 92122 To City: City of Newport Beach Attn: City Manager Agreement for Purchase and Sale of Real Property and Escrow Instructions Page 19 100 Civic Center Drive Newport Beach, CA 92660 With Copies to: City of Newport Beach Attn: City Attorney 100 Civic Center Drive Newport Beach, CA 92660 City of Newport Beach Attn: Real Property Administrator 100 Civic Center Drive Newport Beach, CA 92660 31. NO BROKERS. City and Seller each represents to the other that no brokers have been involved in this transaction. City and Seller agree to indemnify one another against any claim, suits, damages and costs incurred or resulting from the claims of any person for any fee or remuneration due in connection with this transaction pursuant to a written agreement made with said claimant. 32. CONTINGENCY. It is understood and agreed between the Parties hereto that the completion of this transaction, and the Escrow created hereby, is contingent upon the specific acceptance and approval of the City. The execution of these documents and the delivery of same to Escrow Holder constitute said acceptance and approval. 33. CEQA. By its execution of this Agreement, the City is not committing itself or agreeing to undertake any activity requiring the subsequent exercise of discretion by the City or any department thereof, including, but not limited to, the approval of any CEQA documents, the approval of any development project or land use regulation governing the Property, or any other act or approval. The City reserves the right to exercise in good faith its discretion as to all matters which it is, by law, entitled or required to exercise its discretion, including, but not limited to, the consideration of CEQA documents, the consideration of any and all plans, permits, licenses, or regulatory approvals, or any other acts or activities requiring the subsequent independent exercise of discretion by the City or any agency or department thereof. The City may in good faith, in its sole and absolute discretion, certify or not certify a CEQA document and approve, approve with modifications, or not approve, or consider other alternatives, including those presented in the CEQA documents. 34. ENTIRE AGREEMENT, WAIVER AND MODIFICATION. This Agreement is the entire Agreement between the Parties with respect to the subject matter of this Agreement. It supersedes all prior agreements and understanding, whether oral or written, between the Parties with respect to the matters contained in this Agreement. Any waiver, modification, consent or acquiescence with respect to any provision of this Agreement shall be set forth in writing and duly executed by or on behalf of the Party to Agreement for Purchase and Sale of Real Property and Escrow Instructions Page 20 be bound thereby. No waiver by any Party of any breach hereunder shall be deemed a waiver of any other or subsequent breach. 35. CITY AUTHORIZATION. The City Manager of the City of Newport Beach is hereby authorized, on behalf of the City, to sign all documents necessary and appropriate to carry out and implement this Agreement and to administer the City's obligations, responsibilities and duties to be performed under this Agreement. [SIGNATURES ON NEXT PAGE] IN WITNESS WHEREOF, the Parties hereto have executed this Agreement for Purchase and Sale of Real Property and Escrow Instructions as of the date set forth above. r'�crRORr�� APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Atwo' n C. H a N City Attorney SELLER: MNG Newport Beach, LLC, a California limited liability company CITY By: MNG Management, LLC, a California limited liability company Its: Manger Date CITY OF NEWPORT BEACH, a California municipal corporation and charter city Date Dav City Manager Leil i L B OWO MMC. City Clerk Dates Agreement for Purchase and Sale of Real Property and Escrow Instructions Page 21 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA ) ) ss. COUNTY OF SAN DIEGO) On NCk V-1- 6e et- "�',36 before me, Giovanna Delia, Notary Public, personally appeared Daron Young, who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument, the person, or the entity upon behalf of which the person acted, executed the instrument. I certify under penalty of perjury under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. r ----------- Ci1OVANNADEL1A Notary Vublie n Caliiomi l z San Diego County Commission # 219014 Notary Public in and for My Comm. Expires Apr 14, Mi said County and State [END OF SIGNATURES] ATTACHMENTS: Exhibit A — Property Legal Description Exhibit B — Property Depiction Exhibit C — Grant Deed Agreement for Purchase and Sale of Real Property and Escrow Instructions Page 22 EXHIBIT "A" PROPERTY LEGAL DESCRIPTION The land referred to in is situated in the State of California, County of Orange, City of Newport Beach, described as follows: Parcel 1 as shown on Exhibit "B" attached to Newport Beach Lot Line Adjustment No. 94-12 recorded January 1, 1995 as Instrument No. 95-00037688 of Official Records of Orange County, California. Excepting from that portion included within Parcel H, as shown on Record of Survey filed in Book 76, page 46 of Records of Surveys in the office of the County Recorded of said Orange County, all mineral rights including oil, gas and other hydrocarbons without the right of surface entry, as reserved by the City of Newport Beach by deed recorded July 29, 1964 in Book 7153, page 988 of Official Records. Agreement for Purchase and Sale of Real Property and Escrow Instructions Page A-1 EXHIBIT "B" PROPERTY DEPICTION Agreement for Purchase and Sale of Real Property and Escrow Instructions Page B-1 047,110 25 b.j d� Al Ck 0111 Z ..... ..... 1 Newport Beach GIS 0 0 40 80 Feet • Ah" U7 46 297 29 jN -4 Disclaimer: Every reasonable effort has been made to assure the accuracy of the data provided, however, The City of Newport Beach and its employees and agents disclaim any and all responsibility from or relating to any results obtained in its use. Imagery: 2009-2013 photos provided by Eagle Imaging www.eagleaerial.com 9/1/20171 EXHIBIT "C" GRANT DEED RECORDING REQUESTED BY: CITY OF NEWPORT BEACH AND WHEN RECORDED MAIL TO: Attn: City Clerk City of Newport Beach 100 Civic Center Drive Newport Beach, CA 92660 ORDER: ESCROW NO.: Exempt from recording fee per Government Code §§ 6103 and 27383 Parcel No: 047-110-36 (Space Above This Line For Recorder's Use Only) GRANT DEED THE UNDERSIGNED GRANTOR(S) DECLARE(s): ❑ City of Newport Beach Documentary Transfer Tax is $ ❑ unincorporated area City Transfer Tax is $0.00 ❑computed on full value of interest or property conveyed, or ❑ full value less value of liens or encumbrances remaining at the time of sale FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, MNG Newport Beach, LLC, a California limited liability company, hereby GRANTS in fee simple interest to the City of Newport Beach, a municipal corporation and charter city, the following real property in the City of Newport Beach, County of Orange, State of California described in EXHIBIT "A" and depicted on EXHIBIT "B," which exhibits are attached hereto and incorporated herein by reference and are made a part of this Grant Deed, with all improvements and fixtures, together with equipment and personal property, if any, located on or under the land (collectively the "Property"). THE PROPERTY IS CONVEYED TO GRANTEE SUBJECT TO THE FOLLOWING: A. The Property is sold to and accepted by Grantee "As -Is" and "Where -Is", with all faults, if any, and without any warranty whatsoever, express or implied. B. Pursuant to the terms of all documents of record, including the Grant Deed dated June 9, 2016 and recorded on June 14, 2016 as Instrument No. 2016000267576 of the Official Records of the County of Orange. Agreement for Purchase and Sale of Real Property and Escrow Instructions Page C-1 [END OF DOCUMENT. SIGNATURES ON NEXT PAGE.] IN WITNESS WHEREOF, the undersigned has executed this Grant Deed as of October , 2017. MNG NEWPORT BEACH, LLC, a California limited liability company By: MNG Management, LLC, a California limited liability company Its: Manager Daron Young Manager ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California County of }ss. On , 20 before me, , Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signatures(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (seal) Agreement for Purchase and Sale of Real Property and Escrow Instructions Page C-2 EXHIBIT "A" PROPERTY LEGAL DESCRIPTION The land referred to in is situated in the State of California, County of Orange, City of Newport Beach, described as follows: Parcel 1 as shown on Exhibit "B" attached to Newport Beach Lot Line Adjustment No. 94-12 recorded January 1, 1995 as Instrument No. 95-00037688 of Official Records of Orange County, California. Excepting from that portion included within Parcel H, as shown on Record of Survey filed in Book 76, page 46 of Records of Surveys in the office of the County Recorded of said Orange County, all mineral rights including oil, gas and other hydrocarbons without the right of surface entry, as reserved by the City of Newport Beach by deed recorded July 29, 1964 in Book 7153, page 988 of Official Records. Agreement for Purchase and Sale of Real Property and Escrow Instructions Page C-3 EXHIBIT "B" PROPERTY DEPICTION Agreement for Purchase and Sale of Real Property and Escrow Instructions Page C-4 � 047 1000�4 " �V O47`1 �10 29 N r Newport Beach Disclaimer: Every reasonable effort has been made to assure the accuracy of the data provided, however, The City of GIS Newport Beach and its employees and agents disclaim any and all responsibility from or relating to any results obtained in its use. p e 0 40 80 Imagery: 2009-2013 photos provided by Eagle U � Feet Imaging www.eagleaerial.com cq4 FoaN`t 9/1/2017 CERTIFICATE OF ACCEPTANCE This CERTIFICATE OF ACCEPTANCE is to certify that the interest in real property set forth in that certain Grant Deed by and between the City of Newport Beach, a California municipal corporation and charter city, as Grantee, and MNG Newport Beach, LLC, a California limited liability company, as Grantor, for property located at 2807 Newport Boulevard [APN: 047-110-361, located in the City of Newport Beach is hereby accepted on , 2017, by the undersigned officer on behalf of the City of Newport Beach pursuant to authority conferred by Resolution No. 1992-82 of the City Council adopted on July 27, 1992. The City of Newport Beach consents to the recordation of said document in the Office of the Recorder of Orange County, State of California. APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Date: By: Aaron C. Harp City Attorney ATTEST: Date: in Leilani I. Brown City Clerk CITY OF NEWPORT BEACH, A California municipal corporation Date: By: Dave Kiff City Manager RECOMMENDED FOR ACCEPTANCE: COMMUNITY DEVELOPMENT DEPARTMENT Date: By: Seimone Jurjis Community Development Director Agreement for Purchase and Sale of Real Property and Escrow Instructions Page C-5 ACKNOWLEDGEMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. State of California ) County of ORANGE ) On before me, , Notary Public, personally appeared DAVE KIFF, who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity(ies), and that by his signature on the instrument the person, or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature (Seal) Agreement for Purchase and Sale of Real Property and Escrow Instructions Page C-6