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09-0220_26755 VERDUGO LLC_Owner Participation AgreementO WNF R PAR TICIPA TIC N A GREEMENT b3l and Between the SAN JUAN C APISITRANGI COMMUNITI RHIIIEVELCIPMENT AGENCY anidl 3(TIS VERDUGO LLC LICICSCIC/ 1199194 v 16/a 212 99-00 F+I 7,AIBI E OF (ICIl� TIE NTS Page 100. IN HRODU CITCIRY PROVISICII` S...........................................................................................1 19 1. Definiliatis.....................................................................................................................1 193. Roll rasenlations and 1Alarranties....................................................................................5 101. Pro I ibition Against Clhange in Owne nshig, M anaga ma nt and Conti of al Partiai11an.....................................................................................................................6 200. CIONDITION OF.`HHE SITB.....................................................................................................8 3 4 1. Ha:1a rda us Materials ................................................... 8 1U. lndemnitil.....................................................................................................................8 300. HINANCIIAL PROVISI FI S.....................................................................................................8 341. (lover anis loan .............................................................................................................8 3a3. (londitionofDisWise matit ...........................................................................................8 400. DEVHI CIPN B, 'll OF THB DHN EL OPMEINT PAHCEL........................................................9 zI d 1. Da va la pme nt a it i1c Site by Par is ig a nt.........................................................................9 zIa3. (Iasi ofClomlitic liar.................................................................................................:...9 4a3. (la mmunaement and (lompletion of Consti uction ........................................................9 444. (lity and Other Govarnmenial AIgo ncy Permil1.............................................................9 zIa J. Ha dily ln'ury a it (I Puoper y Damage Insunai a e.............................................................9 44 EI. Rights a I Aaaess.......................................................................................................... IO 447. Nondiaariminalion Duping Clomfliuclion.....................................................................10 441. Taxes, AIssessnianis, Hnaumbranaes and Liens...........................................................10 4a9. Submission oil Wide nae of Financing CommilmenIs and Iloan Closing....................11 41 fl. M a rl gage, De ed of 71i ust, Sale and Lea se -Ba a k Fina no ing; Right s of HoIde s ..........11 411. Ra It ase a 1 Cla r st ual is nClovenants.............................................................................. I I 100. COVE NANIS, CIONDITIONS, RES'IIRICIWONS AND REPAYME N1 OBLIGAIUON.........................................................................................................................14 901. Uses.............................................................................................................................14 902. Operating(lo)ianant.....................................................................................................14 903. `Henani RaMriations......................................................................................................14 904. N a i nu nancu................................................................................................................11 909. Rights of Alaae&..........................................................................................................11 906. Nondiscrimination.......................................................................................................11 907. Aa paymen'I Oblig a'I ion.................................................................................................17 508. Hffeat oil VioIw ion of the Ta rtris a nd Priovi;i ions of this Agra ament ...........................17 600. GIT ERAL PROM ISICIN9......................................................................................................17 601. Not icas, Demands and Communications Among 11 a Parties......................................17 602. Cla nflicu a i Inte est.....................................................................................................18 603. E nfa tnca d Ile lay; Exta nsion of "limes a 1 Pei fa rtrianca................................................18 604. T onliability of Official: and Employees of ti a Agency.............................................18 605. (Io mnlanaemenl of Agency Review Peuiad................................................................18 DCICSC IC/ 1.9: 19416/02:299-0484 TABUB OF COI` 71aNTS (Continued' Pa ge 700. IIHFAUIITS AND REMEDIES..............................................................................................19 Site Map 741. Defaults - Clenenal......................................................................................................19 Attaal mart N a. 7 193. Illegal Actions..............................................................................................................19 lee lease of Clonstmell ion Cove n a n1 s 191, Right s a nd Rlemediss Ana Cumutal ive........................................................................20 Attale l mar0 c. fl 704. Ina cllion Not a Waive of Defau Ill ................................................................................20 Promis, cry Nola 800. SPHCIIAIL PRCIN ISICINS.........................................................................................................20 841. Indemnification oil1lhe Agena)l....................................................................................20 193, Re a 1 H; to to Commis; is ti s...............:............................................................................21 391, Successom In In1e ra st..................................................................................................21 8 4 �I . Amendment to thin Agre ement..................................................................................2 l gal. )lntine Agneemant, Ala ivc rs.........................................................................................21 39d. the cull ion of AI nee nit nt..............................................................................................21 A7ITACHMHNTS Atiaal m( iit T a. l Site Map Attaal mant T a. I Site Llegal Descuipt'an Attaal mart N a. 7 Sat adutc of Panformance Avail ma n t T c. zI lee lease of Clonstmell ion Cove n a n1 s Athol mant 1` c. 9 Memorandum of Ag nae manI Attale l mar0 c. fl Prevailing Wage and Public Wlo4 s Regluinem( tits Avail ment 1` c, 7 Promis, cry Nola AV as t rn a n t I` a. 8 Ileed of Trust ii DCIC SCIC/I 7 97 ] 9Q v 16/d 23199-(M Ed OWNEM PAMICIPA TICIN A CIREEMENZI ' lhis OWNER PIARIICIPIAIION AICIRI+]EMF NT (I1his "Agreement") is antanod info by and belwoen tl a SAN MAIN CIAPISTRANO COMMUN M RI+]DEVELOPMENI AGHNCY, a public body corglanale and politic (the "Agency") and 26755 VERIDUGC 11I1C, a California limited liabilit,I company (the "lartioipant"). R H C I I A L S 11he folio v iir g nea itals are a subs tanI No part Al his Agneemenl; capilaliza d to rus us ed herein and not oilherwiiso defined ana defined in Sea tiar IO I a111his All neo rnoa1: A. Tl a Agency is aulhoriaed and amllowened under 1he Clarnmunily Redevelopment claw, to erten in to al nee mQnIs fon the acquisilion, &po;lilion and development al seal properly and olherwiise to assist in tl a nadevelopmenl A neal proporly viithin a nadevelopmenl pnojeat area in confomiily with a redevelopment plan adopted Ion such araa; to aaquina neat and pansonal property in i edevelopment pnojea t a rc as; to no a eive a a n sideral ion fan tl a pre `its ion by IN Agency al redevelopment as s islana a; to make and execute cons i acts and other ins Iruments na a ess aq an convilIliilnt 1I0 tic exorcise of its powers; and la incus indoltadness to finance or refinance nedevelopmenl projecls. H. Participant is 1he Owner al cerain neal pnopert;l which is depicted on tho Site Map attaot ed honelo as Attachment No. 1 and mole particularly described in the Sile Liegal Description altaot ad heneto as Attachment No. 2 (I1he "Site";. 71[e Site is laaalled Witt in 1Ihe baunda: ies of 1Ihe Projec l Area fon the Redevelopment Plan ileaah as heneinaflen defined). U. Tic Agency and tha Participant da s ira la enter into This Alt no eme nt in a nda n to provide Jlor the making of a {Iona n a nl s Moan (las hang ina flen defined) by Agency to Pa rl icipanl, and for the imps ovemenl of tt a Sito 111 Pa rlicipant. D. Tl a provision of It a Clovenanls and aonslruc-lion A1he Irnpriovements l;l Parlicipanl will holll to eliminato blight in it Piojecl Area, iIlerilase the empIglrnont opporunitios Will in 'Ile Pra.jocl Alnaa, ganerate additional taxes with which tie community can inaliea<.e and assist in pioviding an enviionmant iloi tho social and aaonomia growth and veell-baht of tha ailizors allhe {lily. H. Tl a aansliiucJcn and oponation of ti a Impnavemenls pursuant to It is Agreement and the lulfillmert tenerally of this Agreement ana in the `iital and bast inlenesls oil the City and the health, satiety, and wallane of its rosidenls and in accord with the provisions of applical le federal, stata and local law. N C W IHHREHORE the All e ncy and ]he Par icipanl hereby agi ee as fa llo vsis : 100. INTRO IIUCITORY APO` ISIONS Hili. Definitions. The following tarns shall lave the nespective meanings assigned to Them in this Section 101 unless the context in whial the)lera used alearl;l requires otherwise: 1 DUal "Agency" means tic San Juan Claphtnano Clommunily Wdevelopmenl Agency, a public body, corf,lora to and pol it is , a xe ra icing g overnrm a n l a I tuna t ions and povio n and organized and existing undo n CII a p le r 7 of t he C lommunity Ra da velopmerrl Laud, and any assignee oil os s uea a ssa n to ills sights, powaos and responsibilillies. "As rei ment" mE a ns this Gainer Pa n ici pal ion Agneeme nt by a n d I a vac en rI he Agency and rI he Par iaipanl. "Clerdficarle of Final InVlecilton" it all mean the certificate is: uad by rlhe oilfreial in rlhe Clity's Building Deparmen'I wilh authomily ovem such i:suanoa sub.,equenl to the appmoval of the completion of rlhe building aoae and shall by any and all cily deparmanls and putlia agancie! with nights to condi'lion and/los impecl II a lmpraiiamenls, including without limi'lallion the City's Clammunily Davalopmanl Deparlmenl, the Public Womk Deparimenil, the Utility Deparmanl, the Oaange County Fina Aulhoail:l, the:anitalian di:tnicl, and IN Grange Clounty Shesiffls Department, which eer ifrcato sl a ll evidence -I he Pan icipanl's sat is iaatory a omll la I is n of 1 he building aura and it all Ilarlion of ti a lmpriovemeni:. "Cli,ly" mean! ti a Ci'ly of San Juan (la pislmno, a Calilornia municipal cogloration. "Cllaim9" is defined in Section 210.3 heseoil. "Community Rndavelopmenrl Lalli" means Clalilornia Hea11h and Way Code Sect ions 3 10 4 0, E t seq., a: 'I he sa ma now exists or ma) I I a re afta n be amended. "ClonsrlruejWon Financins " means the conventional financing to t e obtained by the Par iaipanl lnom an in: Iitutional lendeo foi the eonstmuciion and aompla lia n of ti a Pno'ec1 subjaat o the aandilion: cel forth in Section 410 hereof. "Clonsrlruejion Financing Cllosins Dade" shall mean the darle all tic closirig of the Clanslruation Financing obtained by ti a Par iaipanl in andan to construct ti lmprarramenls on the Side in acoa ndanaa wilh ti a provh is ri s of 9 ac -lion 410 of this Agraamenl . "Clovenan ls" is dafined in Seation 107. "Clovenan4 floan" is defiri ad in Saclion 301. "(lou"I " shall mean the Clounl)l a l Clnanga. "Da. la of this As reamanA" me a ns "Deea of Aruv" means 1he dead al burl which secures the Par iaipanl': at ligation undan the Promissory rota in subs'lan'lially the lorrr attaatad heuelo as Attaahmenl No. 8 and inaarfloaarled ha nein by refe:ue nce. "Defauhl" means 'Ihe lailuae al a'parly 1a peifarm any acliari os oov(rianl sequined bil this Agmeemant within the lime pemiads provided hanein falloviing nolice and opportunily'lo cure, w set ford in Sea tion 701 he neon. "Disburseinen l Dale" is defined in Section 303 of 1I is Agoeemenl. 2 DOCS 0aV179219,1N 16/1112199-(48 6 "Hngiblilemenis" means CACI) 06-12 the "Paseo De Vendugo" pnojac appraliad by Rasolulion No. 08-04-1; -03. "Hmihonmcniall lla>♦" moans any state on local law, statute, ordinance or iiegulalion perainint to enviiionmenal nagidation, oantarnination oii cleanup of anal 1-lazaiidous Natcriah, including, without limitation: (i; Seclions 25115, 2_` 117, 71177.7 on 21140 of tho Clalillornia Health and Safety Code, Division 10, Clt apieu (1.1 (11 -la; andous Was -le Conlnol Law), Ilii) Seation 25316 of ll e California Ha a ltt and Safe I; l Clo do , Ilivis is n 20, Chaplo n 6.8 (jCa rpo nta n-Pna s ley -Ta n n o r Hazardous lous Sut slanca Aacoun Plat), 1iii' Seclion 25501 an the California Naallt and Safely Code, Division 20, Chaptan 6.95 IlHazandous Maleuials Release Responso Plan9 and Iriminlary,, ijiii) Seation 25281 of It e Ca lifomia Hea Ith and Sa hely Code, Division 7 0, Chaplen (1.7 ilL ndenl nound S tonago of Hajarda u s Sut slanca s', Qv; Ar is It 9 or An icle 11 of Til le 22 of d a Califi iia Administnat ive Ch cic, Division 4, Cha ptan 20, (1ii; Seel ion 311 of the Clean Wla1en Act 111 U.S.C. Section 1317 , (Jviil Soatian 1994 of 'Ihe Rcsouuce Clonsarmation and Rsaovery Act, 47 L.9.CI. Seclionstlgdl etsal. (47 L.S.CI. Section 69031, (1viii) Seation 10I of 11 c Clompnahensiva Hnviranmontal He,ipanse, Compensation and Dial ilily Act, 42 U.S.C. Seatiom 9(Ia 1 Fit seq., on ,lix) any slwe or lleclanal lien or ".iuporlien" lave, any envinanmanlal cleanup statute or rat ulation, on any permit, anpnoval, authonizalion, license, liarianae on narmission required [),I any govermrnan.lal aulhouity having junisdiation. "Ginitirnmenlal Acigshemenls" means all `ialid and enforacable laws, ordinances, atatutos, codes, rules, uegulalions, ordens and decnees oll It e L nits d Stales, tho Stale, -Ihe County, tt c Clit)l ou any ott air politioal sut diiiision in v hick the Sita is located, and of any oil ar poliliaal subdivision, agenail on inslnumanlzlit;l omraising jurisdialian ovon lihe Agena;l, the Paricipaml or Ihe Site, including, withoul limitation, all applia, bit s-lale h bon st, ndands, tt a Clity zoning and developmernl stand,rds, building, plumbing, mechaniaa1 nd alac-lriaaI oadas, and aI1 olhan praiiisions of Ihe Cily Muniaipal Cladc, and all applicable disabled and handicapped accass nequiiiemernis, including wilhoull lin itation alta Ihe exlenl applicable; tt a Americans Wi'Ih Tlisabililics Act, 42 U.S.Cl. Seation 12101, et seq., Government Clode 91ac1on 4450, et saq., Govo rrimeni Clode S o c1on 11135, e l miq., and 11 e Unrut Clivil Mighl s Act, CINil Clo do Socll ion 51, e,l seq. With raspecl to It c conslruation all tt o In nnovemonts, Par icipanl and its aontnaoton,i and ,iubaantnaatoni stall pay prevailing wages and emplql appuenlices in compliance with Ilaboii Clode Sect ion 1770, et saq., and shall be nesponsit la for 'Ihe keeping of , 11 records uequined punim nl to Da t or Clode 9lection 177(1, compliling with Ihe maximum houns nequirarnants of Labon Coda Sections 1810'Ihrough 1811, and aornplying with all uegula1ons and sta1ulory uequinemen s ponaining lihenello. Such nequinemenl s ane sel ilor h in g re a en detail in Atl as hma nt No. (I at7 as ha d ha nelo and incoglor, tad henein by rallonenao. Lpc n lihe noriodia raque,it an tt a Agenay, the Parlicipanl shall cenify to tit AIgoncy tl al it is in aamplianac v ith these nequinements. Partiaipant stall indemnify, puatac-1, dollend and talc) hanmlass Ihe Agency and its offiacrs, ernnloyacs, conlinctous and agents, with counsel nemonathl aaceplable to Agency, fnom and against any and all lass, liability, (arnage, claim, cost, expense a ndA n "increased cods" (lincluding rez sonable atiorneys fees, ae un and litigaian costs, and Aeas all expert wilnesse,i) v fiat, in oonnoelion wi-lh Ihe development, construction, and,bn aper, tion of ttc Impnovemenl,i, including, wilhoul limitation, any and all public works das defined by applicable law), re,iuN a n arises in a ny way from any of the hollowing: I] ] Ile noncompliance by Par icipan of , n}l applical le local, sIale and.br fadena I law, including, wilhoul limit, tion, any a nn liaa t le fa de n 1 ndla n sty to h t o n law9 (ina luding, will how limitation, if pp Iiaa ble, the raquiren ant to pay it, to pnevailing wages'; (12: the implementation of Seation 1781 of the Ilabou Coda, s the srno rna y t c amended from lime to lima, an any olhen similar law; a nd.lar 113 lailuue by Par is ipa nt to pnovide any nequined disclosune or identifiaa 1s n as uequined by Da t (ir Coda Secl ion DOCK IC/129-s 194)11d/072199-1019 1781, as the sacra mail bo amendod horn lime to lirna, of any other similan law. I1 is agreed by the par ies 11hal, in aonneclion wilt the deilalal mant oil it a lmplovements, including, wilhoul limi1lalion, any and all public woos Ilas de fined by applica l la la wl , Pan icipanl shall bear all risks ail payment o1 non -laymen) of pnevailing wages under California law and/or it implementation al LJabol Clode Seclion 1781, as the same may to amended franc time to lime, and/lon any ollhei similar law. "lnciiemad costs," as used lerain, shall have 11he meaning aseribtd to ill in IJabon Code Section 1781, as lh( same may be amended from dime to lime. Tha llonegoing indamnily stall survive lerrninalion of lhis Agroemew and sl all conlinue aflor complelion alit a aansllnua lien and development al the 1 to pnovemenl s bil tt a Pa rl ie ipatlt. "hi%araous Matariads" means any subslaneo, malarial a u was le which is on becomes prion to 'Ihe Chasing iiegulaled by any local Ac)wrrnmanUI aulhonily, the S11a11e a1Clalilornia of the Lniled Shies Governmenl, including, but noel limited lo, any mallenial an subslance which is Ili) defined as a "hazardous waste," "extremely hazardous waste," or "lestricled hazardous waslle" under Secllions 25115, 25117 a a 25122.7, a t listed pursuant io Sea lion 21140 of the Clalilornia H ealllh and Safal;l Clode, Division 20, Clhapllen (1.9 (lHaaardqus Was ClonlraI Ilaw , Qiij dofint d as a "hazardous subs lance" under 91oc11ion 21316 ai'Ihe California Haalll and Sanely Code, Division 20, Chaplen 6.8 11Clarl enleii-Piiesl(,l-`I annen Hazardous Subslanae Acaatint plat), (Iiiij de fined as a "hazandous ma'lenia I," "haAardous subs lance," a n "haaarda is waste" under Seel ion 25501 of Il o Califorrlia H t al'Ih and Safely Code, lliilision 20, Chaplen 6.95 (Haaardaus Malarials Rehase Aespanse Plans and lnilanlarf , 1NI defined as a "hazandous subsU nae" under Seclion 25281 oftha Clalifarnia HoaLt and Safal,l Clode, Division 20, Clhapler 6.7 (Underground Slonag( cit Haaardaus Substaneas;, (11) petroleum, i1vi) ihiablo asbestos, ilvii) polychloliinwed biphenyls, i1viii; lisled under Artiala 9 on definod as "haaardalls" of "extremely hazardous" pr asuanl la Article l I of'fidc 22 afllhe Cahibrniia Adminislra )bit Clode, Division �1, Clhaplen 10, (ix) d(signaled as " t azandous al t sllancos" pursuant to Secllion 311 of tho Wean Waltn Act (77 U.S.C. 9acAcri 1317), (lx; definad as a "haaaudaus waste" pursuanll la Section 1004 of the Aosounce ConservaActi and Recovery Acl, 42 U.S.CI. Seations 6901 et such• (142 U.S.C. Section 6903) or (1xi) defined as "haaandaus sut sllanc( s" pursuant to Section 101 of t e Clomprehensive Hnvironmenu 1 Response, Compensa'lion and Lliabili'ly plcll, 42 U.9.CI. 9loclions 9601, eel seq. "Imihiovemenhii" shall mean the impnovemants to t c. conslnucled and openaled by Par iail ant upon It a 31ila in accordance with the HnliI]amenIs. "Memoranaum of fgpeemenil" means tha rnamanandum attaahed heiielo as Adaalmonl No. 5 and ineorpa naled henein by this neferance which it all ba reaardod upon appnoval hereof by It e partio s. "Opemiwing Covenant" is definad in 9laclion 502. "Opemia�ling AeA od" is definad in 3ac'lion 902. "PermiAl ea Transfer" is def-inod in Socl ion 103. "Projectl" 7t all mean devalapmarl and openation of the Iml movements by the Par icipanl an 11 a Sita I tinsuanl la It is Agreement. "Projectl I rea" means the geographic anea dasenibed as Ito Pnojeat Amea in the Redailalal marl Plan. 4 DOCSOC/17 9719 4 v 16/a 2321 q-09 801 "PromissorJ1 Alone" means the Pi arnissor)l No IQ in ,iifl s lanidally the form attaal ad harato as Atlachmenl No. 7 and inca rrloi aled herein by i efe rc nce. 'Uhidevelbpmenil Alan" means the redevelopment plan enlillled the Central Redaualonrnanl Etojeat approved and adopted by Ordinance 1` a. 488, da lad July 12, 1983, as amenclad b`l Clydinanaa No. 509 doed Mal l 11, 1984, as amended by Ordinanca t a . 1141 cls lad July 16, 1983, E s amenclad l y Ordinance T c. JE dated August 19, 1986, as amended by Clydinanaa No. 716 dated ❑ecembar FI, 1994, as amsndod by Clydinanaa No . 881 dalled July 11, 2003, as r rnencled by Ordinr nae No. 9', 3 dk led Nay 11, 20 0 7, as amendecl by Ordinanaa No. 932 dzz cd De aembei 18, 3001, as i l may IQ Our hei z mended fro m time to 1 ime. "Rulkiase of Consrlruation Covenants" mems Ila document whiah avidanaes Nrtiaip,nt's sal islaoto DI completion of 11 a constnuclion of 11 a Impnovemenls, r s sell fa nh in Section 412 hereof, in the form of Alttaahmarrl No. 4 henelo which is inca rponaled hanein by reference. ".! che4 ulti cif Peirformance" means th, I ae rtain Schedule of PE nform, nae attached henelo as Art, ahmen'l No. 3 , nd ineorporaled herein by rafeto nae, which sahe dula, subject Flo II a grovisia ns of Sao ion 601 of 11 is Agnaemenl sats out the tiles andAon lime peniads by which cerain obli8z lions se I forh in this Agueemenl must be zccomplishad. The Saledule of Pei farrnance is subjecl to ievisian tiom dime to lime s mutually z grt ed upon in waiting 1 a lween the Pz rtiaip� n 1 and the Agency's Hxeautive Dineclon, and the Agency's Miacu'lNe f1healan is aulhoristad on behalf altle Algancy la r8rae to m, kc wah nevisians as he on she deems reasonably neae.i3ar3l. I1 is undatslaa(l 'IhM tha Sehadule of Penfarmanae is subjeal to all of the lortni and conditions se -I forth in the lexl of this Agneamanl. The summar)l of Its ilams oil penformanae in the Schedule of Panfortnanae is not inlendad to supansade ori modify Ile moue complete desaripilion in 1Ihe text; in the event oil any inaansislenall betwoon the Saledule allPanfortrrnce znd the IexiI all this Agneemant, the tacit sh,ll go ve M. "Sulci" means 1l a 1 oertt in heal pnopery ganart lly located at 26755 Vendugo Stneel, San Juan Clapisli ano, California 9 3 (113 and shown a in the Site N ap. "Side IWAjal De&crlprlion" means the desaription of Ile Site altaahed harato as Ali achmani No. 2 and inaorponaled he nein by reference. "Side Mall" rnat ns the map of If a Sita attaahed I ene'lo as Atlaal man T a, 1 and inca rponaled ho nein by i efere nce. 102. Reprdsenilations: nd Warr: plies. 102.1 A I;le na y Represental ions. Aga n o y ra pno s enil s a n d vera rrant s la Parl icipani that the Algancy is a public body, oorponale and poRia, existing pursuant to the Clan munily RadevelopmeW Law, whish has been aulhorizad to luansaaI business pursuant 10 action of the City. Performance and deliverNI of this Agreement by Agency has teen dully uthanized by ll requisi-Ie actions an the pan of Agonay. ']his neprosenlation shall be dearned to bean ongoing raprosentalion and waniamly. The Aganay shall advise II a Participant in wailing if 1I ere is any change pertaining 10 any matlens sell forth of reforanaed herein. 102.2 Harticipanil Representslions. `llhe Nrtiaiparrt nepiesen s and waruanIs 10 the Agency as hollows: 7 DOCS OMA2194)i10101AS 94019 a. AluIhorit3j. 7tt Pail icipanl is du131 astablish((I and in gaa(I landing undeiu fila laws all the Slate all Qliliornia and has duly aulhouized, oxaauled and delivaned thi, Agraemenl and, axcepl as sat ibr 1 in -Ihis Agreement, any and � I1 olheii agraemenls and document, raquined to be executed and di lharad by tie Pariain�W in anden to carr31 out, give eftlaal 10, and consummala the than.,aclions act tarn Uhtad by Ili, Agneemenl. b. 14c (Ion t]ici . 'Dhe Par icipanl does not hale any rnr I eris 1 a onl h i a nl of ligations an any malenial conlr�clual agiueemenls vel iah 1 ave not leen fully disclosed in � sepanata writing 10 -Ihe Agency Anion to the hale of tl is Agrtemenl which could matenially advensaly afileat tha ability oil l he Par is iA � nl to a arty out il s obl igalion., as : eel fa rl h in i his Agiieema nt. C. No Regal Pra ( eedings. Thera cue no ma-lenk 1 la gal pre a eedings flondirig on, la the Par iaipanl's t asl knowledge, lheiie ane na lege I puocea(lini s li nee toned, to wt ial tie Parlicipanl is on may be made a party ou to vihiah It a Site is on may baaorna subject, wl iei aauld mat( nially ad, ansely affect It a abililil aillhe Pari icipanl filo carr3l oul its obliga licris heneunden. d. No Participant Banknuplcy. Ti ane is no action on legs] or adrninislnative pnocea(lini pat cling on, la tie Paricipanl's bell knowledi a, tl neatanad, looting toward the (lissolulion on liquide lien of tie Participant an anal legal enliily which aamllI the Pan icipanl. C. Hxpenian(e and Qua lillicailions. The Par icipaml repnesan Is to the Agency lha- tie Pavicipanl has tie axileritnae and qualifiaallions neaassaril to perform as Aarticipant pursuant to this Alt nae me n . f. Hazardous Maileriah. Dxeapt as to Iho Phase 1 Slummar)l attached heoelo as Attachmernl T a. q and inaargonaled heroin by nellenence which disclosa's ti a resulls of a Phase 1 Envinonmantal Assessmenl daled tuna 1, 100d, no itl a n Par icipanl nor, to the best a f Pariaipanl's actual knoviladge, any pnevious ownen, lananl, oceupanl, an usen of tie Site used, genanat((I, raleasad, disaharl ad, stoned, an disposed of any Nazandous Malenials on, unden, in, an about the Sita, o1u tnansportt d aril F aaandous Nla lariats la on fnom tt a Site in via la lion of applicable Hnvinonmenlal Ilaw. g. ComBliance with Environmental vaw,IGovernmenlal Requirements. To the bes-1 of Paricipanl's knowledge, the Side and the pnesanl ari(I iinoposed use of ilhe Sita ane not in `iolation of any applicable Hnvinonmenlal Haw on Cloverrurnantal Raquirarnonls, exeapl ai has t sen dully disclosed in a sapara le wni'lini 'lo the Agency pnior to the Dat( of -Ihis Agneemenl. Hacl of he fouegoing items a. -lo g., inclusive shall t a daamtd to t e an ongoing napresentation and warrant31. IN PartioiAanl shall advise the Agency in viriling if lhene is any change At rta fining to any matters set fortd ou uefaranced in ilhe forai a irig items a. filo g., inclusive. 03. Prohibition Againsl Change in Owners 1 ip, Managemerrl and Cle nlrol oil Participant. The qualificalions and idenlilies of Ili Pariaipatr, including Uric Allman, the Managit g Mtimt ar of Par iaiAanl, ane of par iaulan conacm -l0 1he Agency. Ill is beaausa of lhosa qualifiaaliat s and idenlilies if at the Algancy has anlenad inla this Agneemenl with he Par icipanl. No volunlaty on it 1 aluntaDl sueaassor in inlarasl of 1he Par iaipanl shall acquiva any intones in the Silt or 11 a Pnojecl nolo any nigl is on paviars undeu'lt is Agneemenl imepl ai expressly set forth heroin. 6 DCICSCICI I � 9719 41 16/( 2129 5 -D( S( I Du1 ing tl a Clpena ling PI( niod, the Aar iaipanI shall not assign on tnansh n, all o1 any par o1 this Agraamanl on 'Ihe Site, of arill portionlls,' lheneoil, of inteiest(Is) therein, on any niglt(Is) Itraundcr without 'Ihe Inion wnitlen approval of the Agana}l's Hxeculive Dinecilon. Assignrnanls fon financing purnoses it all be appnoved by the Agency's Hxeculive Dinecton in aaaordanae with this Soa lian 103 and witt ti a req uiremenis of Seation 409 of ilhis Agneament. Hrion to any assigntnant which nequinas Algtncy's Hxeculive Cineatan appnoval Ioraundan I sing considered fan approval, to Participant stall I a nequined to dt liver io the Agenoll's Hxecutive Ilineaton the farm of pnoposed wnitten assignment and assumption agreement in which the assignee vwuld expressly agnt to assume all tights and obligalians af'Ihe Participant undeii this Agream(tit vilial anise aften the effeativa dale all th( assignmen•I, and in vahiah assignment and assumption agreamenl tt a assignee would agrte to assume or Flarlicipani would expressly r( main nesponsible for all perforrrtance of the Participant which arose prion to the effactivc data of the assignmen'I. Th( a s s ignmo n t and a s sumps ion a g re a mend sl all be in a form yeas a n a bly sa I isfacl or;g to the Agency's legal a ounsa 1 and A ga ncy's legal counsel shall have approved tl a a ss ig n rr1 o n t and assumption agraemonl pnian to its execution and prion to it beearning affealivo. No latera lhan the dale the assignment becomes affective, Aar icipanl and the assign(t shall deliven to iIhe Agency a fully a)iecuted copy of tl a assigtlm(nt and assumption agneamarit. Nolwilhslanding the fort going, noitt or the tendon appnoved b}l the Agana}l punsuant to Section 410 of this Agroemeni nor its suaces9ons or assigns shall be naquire(I iso (aiacwe and delivan an assignment and assumption agntemenl and the nights of such lenden and its suaaessors and assigns shall be as sal farlh in Section 410 oil this Algneenlant. Notwithstanding any olt or provision of lhis Agneement to tt a aantnar)l, Agency appnoval of an a ssig n mt at a it i his Agne( ma nt (in 1 he Site on any intens sl therein shall not be nequined in connea tic n viith anil a f 1he following (leash a "Permitted Tnansh r"': ,ji) Any Iran sfars in vit iah ti o Participani reains a minimum of fifty-one pent( rat (151%) all the own(rshin and rt tains as mplota ma nagemenl and decision -matting con'Iral; {iii; Transfers resulting from the (loath on menlal on physical itioapaciiy oil an individual; i1iii; The gnanling of t( rnlonarM on lormarnont tasarnanls on permils to facililale the da)ioloprnonl AIN Pnojecl; iliv) The leasing all sapaiale spaces in 'Ihe building in 'Ihe normal aaunso of business punsuant to leases to commence no cxiliot 'Than Participant's oamplation of'Ihe building sora and shell as ovidtnced by the issuanat (11 the Clertiftcala a i Final Inspection - Building Cone and Shell; Iv) Tnanslens or assignments in trust fon It benefiil of a spouse, ahildnan, or gnandchildnen; ihii) A sale of -Ift Site at fontclosure I1or a asnuoyance lheneoil in litti o1 a ldoreclosune, punsua nt 1 o a foroclosune the no a 1 t 31 a la nden appnoved by the Algancy in accondanea with 9 t c'lion 4111 of this Algne( ni t at; 7 DC IC'. C ICI f 9 q219, v I E1/11 ,, :17 99 -1:118 6 200. CONIIITICIN CIA THH SITE. 20:1. Hazandous Mailerials. Par is ipi nt shall not cause o i permit 1he presence, u: e genes ation, i eleat e, disc I i rg(, sloi age, a r di; poral a 11 , n)l Hazardous Mater ial: on, under, in, of about, or the ti an: lia r1 ation of ny F azar dour M atei ials to o: tom, ti a Site in viola1 ion a 8 applica t la Environmernlal Ila w. 202. Indemnit31. Participant agneas to and hei eby does indemnify, defend and hold Agency and 1I he Ciily and than ra spec tive ollfrc e s, employee: and a 8 e nl s harrnih ss f a to and aga iii sal any claim, action, quid, pnoceading, loss, cast, damage, liability, daficienc,I, fine, panaltil, punitive damage, of expense (in( lulling, wilhoul limitation, attorneys' fees) (heiieinafle:i collectively the "(Maims n sulting 111w rn, anising out al, ar bas(d upon (ji, ti a pi ese nc e, nelease, use, genenalion, discharge, storage, or disposal of an,l Hawd(us Matenials on, unden, in, o: about, or the Iri nspor atia n of any such mate:iia Is to or from, the Site in `isolation a 8 applicable Dnvinonmental Ila w, wheneveri discovened on Qii; tt a `iia lation, of alleged violation, a i any statute, oidinance , onden, :iula, negulation, permit, _udgmern, or liaense relating to the use, genenation, nelease, dischaige, slonage, disposal, of Inan spor a lion a f Haaarcic us Male ria Is on, under, in, oral a ut, to on from,1Ihe Site wheneiien discovered. This indemnity shall inalucle, without linitation, any Claims fan personal in'ury including sickness, disease on death, Tangible or intangible pnoner;I damage, compensaAn on lost wages, business income, profits on othen economic lass, damage to the naluial 'nasource an the envinonnent, nuisance, pollution, contaminallion, leak, spill, ralease, on othen adverse effect on the environment. 71 is indemnity stall not include any Claim dineatly nesulling from, arising out of, on based upon the negligent aativides ailAganoy, City, or any of the in offiaars, employees, an agents, 300. AIN A NCIH D PROVISIONS 3 111]. Covenants Loan. In conside atic n ibn ti a Clovenants t eraunde , v+il ial (lexaepl as to the Dee d al 1rus1 which shall ba subordinate as hE neinaflen pra `iicled), shall be a non-subondinwe lien on the 91ile pnion and superior to 1Ihe financing appro`iad by the Agency punsuanl 10 Section 410 hereof, and subjeat to 1he terms and aanditions set forth herein, ilhe Agena,l I e ne b;I agraes to loan ilhe Par is ipa nt the sum of Nine Hundred Fifgj 71 a usand Da lla ns 19 9 9fl ,fl fl fl) (1"Clovenant Clansideratian . 317. Condition of IlisbuusemeW. Tha Ag ancy it all disburse iIhe Uoii( nand Ga,i9idera1ion, as follows: Milestones Advan Q A a Plans and Constnuction Doo um(nts Huilding,Permiit Issuance Foundal ion Inspection can plation Aa a ll Sheathing Inspeation Final Framing5lougil Meahiniaal ElfoAcal, Plumbing Ins pe c l is ri Final Dr)lwall Inspection Clertificala all0caullancy 8 DOCSOCIlIgI 19,Iv1d/il, :1', A-01186 Disbuiisemen l Am oun l $150,000.00 $100,000.00 $100,000.00 $100,000.00 $200,000.00 $140,000.00 $160,000.00 400. IIEVI LIOPIMHNT OH IIHE DHVF LOHMEP 'D PARCIEL. 441. Development oil the Side by Plarlicipanl. 71 a lila shall 1 e developed in accord, rice wi-1h 1t a Entitlements. 402. Cost ollClonsi-Inuation. Ike Par icipanl, a ilhe Harlicipant's sola cost and expense, shall cons l ru a t and complet a on caul c IQ cons) nuct ion and compie l ion all all of the Improl ie rn o n s 'lo be conslruotcd by the Paricipanl pursuant la Itis Agneamanl, including any and Ell oft -site and on -silo publia impnovements as mail I a raquiroid b`l tha Hnlillcmenls. 403. Commencement and Glom plet ion of Clons auc lion. ' the P� rl icipanl t c ra I )l covenants and agrees to promptly login and thereafleii diligently Hnocacd to completion the aonslmio'lian olthe Improvomorits and the devolopmont oil the Sita in aarilorrrianca wilhlhe Scheclula a i Penforrrianco . 404. Cit31 and Other (Imiennmonlal Agency Hermits. Belore aommoncemenl of a a n s'I rue tia n of the Impnovemenl s, 1 he Par icipanl shall, a I i-1 s own expanse, sa o ura on c, use l a be secured E ny z nd z I1 po rrri i t s which mz y 1 c h wfu lly m quinec l by 'Ihe C l y (in any of t o gova rrrmental agariay aflaatod I 31 such con: tnuotion, including wilhoul limitation building pannits, and gnading and enanoaat maul gonnils. 1.1 h underslood Thal Ite H,rtisipz rit is a1 ligated to pay, 11 neacssarll hies and to -Timely submi'l la tl c City fin, I clnawings wilt final aanections to abt, in such penmils. 405. Bodily Injural and Plropenty Damage Insurance. The Hz rticipant shall piiolacl, defend, indemni5l, assume z 11 ne:ponsibililil lion and hold harrnilo�s the Agency and the ( ily and Thain elective and appointive boauds, officers, Iaards, aganls and employees, from any rid all Chirns, which may Ic caused by anil of the Participant'.i aclivilias undon this Agreement, negardless of whelhen such activities on pens nuance thereof to l y the Par icipanl a n anyone directly or indirectly employed or conlnacled with by tha Paricipanl and ragardlass of whelhen such damage sk 11 aaaruc or be discovoned before -on after ilenvina lion of this Agneamarit. Fnom tl a data oil ti o (anslruclion llinancing (losing [late through tI c data the Agency issues the Raloasc oil Constnction Covenants lon It a lmprovemenls punsua nt to Section 412 herein, Ihe Participant shall: (ji) a 1 to in and mr inta in a Halia,l of aammencial genenal liat ilily insunance, which shall include l lanlol aontrastual covonaga, and s t all have limit i of no'l less than Tvaa Million Da Ilan: +j1 ] ,fl fl fl ,11 fl fl) Her occunc nce, and if a policy form wi'Ih a genanal aggnegale limit is used on proiOded the aggnegale limit sh, 11 be no�l Iasi than twice -Ihe Ho r occurwence lirnit, which pa liay�s) sl , 11 pna tac-1 the Par is illi n1, the City, and the Agonoy from claims ilou such damage,,, and which policy shall be is; ucd I y an "A:VI" or t alter nalecl insunanae carrion a;i nalecl by A.M. Hast Company, and shall pnovida all aavcragas on an occurrence basis; and (ii; ob ain and maintain on cause to be obtained and maintained by de goneiial oontnaalan genanal liability immance. 'Ilhe Par icigznl shall llurnish an endonsamant(js) of insurance counlensigned by an aulhonized agant al tta insurance carrier an a dorm of -Ihe insurance aanier evidencing and/or effca-ling 1Ihe rcquirarnonts henein and/cr the changes to the Participant's policy to effect such aanlormiti and satling forth 1ho general linovisions of the in: uranae coverage and an endonsemenl that it z 11 namc the City and the Agency and Their iiespaatNa offrcans, boands, agents, and employees as additional insuneds under the llalia,l wi'lh reslloc'l to this P1w,jac'1 and itis Agneamont wi'lh the Agency. It endomemo nl by the iniunanae carrion it all contain a slatomanI of obligail ion on It a par a it ilhe issuing agent an carrion to notify the City End the Agency of any material neduclion, cancellation, or non - ran awal of the aaver, g at leajt third (30; days in advariae of the 4fleclive data al any such malenia I DCICSCIC/1793114v16/( 2::19-0(8 1 (hang( , on non -mens via I. Not less Than fifteen ill J) days prion to the expimalion dale of a n`1 policy of insunanc( mequimed t y this S( ati( n X109, Par icipant shall cause -lo It (It licit r( (Ito Ag( nay a I ind(r on cer ifiea I oil insurance with rt speat to (ach mint wal on now policy, beaming a notation ( iiid( ncing payment of the pmt mium lhemefor, on athen pmaal of pa`lm(nt reasonably salWaatar)I -lo the Agency. In ( ach instance of the pmovision of inunan(e, certified duplicate copies al the paliayQi) our v n(wal poli(y(sl , as applicabb , shall be delivemed -lo the Agenay'i Hxeoutive Himeaton wi-lhin II irt) il30) days of th( da le of such policyils). '➢he Partiaipan I shall alio furnish our cause lo be furnished to -Ihe Agency t vidance swisfacloq 1 a th( AI gt ncy t hal i l and any conA ra c-1 or rout h whom it has a a n tmao I a d lom 'I he pemforrrianc( ( l womk on It a Site an olherwis( punsuarrl to this Agroemenl can ies wankems' compensation insumance as mequintd by la w. '➢he A18ency t t r(t y delaga It s -lo the Ageno`l's Hxecutive Direclor, with and Iluough consultation and advice from the Agency's and City's legal (aunsel and risk managem, th( authomi-ly to eonsidem, and appmove our disappmove, wnitlen nequest(ls) iUiarn tl a Parlicipant oaneerniing any proposed modifrcaliornls; to the indemnifraa lion andrlon inunanae mequinemernls of 'This Algr(emtnl. Provided, t a v ievem, by such d( l(ga 1 is n -I he Al t ncy a xIl ne s sly me s ernes I a i I s e if and l I e Age na � 1's Exaauliiia l]inaalan the sale and absolute diser(tian to appmove on disappmove any such modificationlls, rtqutsled by the Parti( ipant. Unless and umlil any such mequestad modifiealiornls) is appmawd in wmi1ng by the Agenay's Hxeculive Dimeclom, in his/ham sale and al solute discmelion, tic Participant memains at ligated I aroundar and shall comply and eantinue to comply wilh -Ihe indemni-ly and insumance n( quimemenli set forth in lhis A1gv arntw. 406. Pig 11! of Alcce: s. Fan the purpose oil assuming as mplianaa wi-lh lhis Algn t mend, r(pn( senlalives of the Agena`l and 'Ihe Clil`1 stall have the right of acaess to II a Si'le and lmpmovemenls, wi�lhoul changes on fees, al, normal eonsimuction hours duping the pemiod of construclion lom th( purflom(s of lhis Agneemenl, including, but no -1 limited lo, the inmp(e-lian oil II t wort being pemf( rrried in aanstrui( ling the Irnllnov( mE pts, pnovided thal II ey oomply wilh all oil II t Participant's and the Partiaillanl's genanal conlmaclom's safely mules. '➢he Agency shall indemnify, deft nd, and hold the Parti( ipan harmless fr( many claims, losses, liat ililies, and damages amising ow of th( n(gligant activities of It e Agency and Clily as set forth in this Se(tion 406. '➢he Parti( ipan I and II ( Agency agmea to aaapt ra It in placing and maintaining on It t 9 ito ant sign indicating the raspe( tive parts allhe Par i( ipaw and the Agency in 1he Proja( I. Me costs of II e sign and it s incl a l la -I is n shall be bourne by 1 he Par is ipanil , Governmental Requinemenls. Par i6paw shall carry oul the design and construction and opema lion ailhe Impravamarrls in conforrniity with all Governmental Aequir( rpt nls. 407. Nandi; erimina6on During ConAruclion. The participant, fon itself and its sua (e ss ors and assigns, agneas 1 hal in tht con rua t ion oil the Impmovemenl s pro vid( (I fa m in this Agrt emend, II t Parr icipanl will not discriminaile against anil employe( our applicant Sem employmt nl because of mace, aalom, (mead, maligion, age, sex, manila] slalus, physiaal our manlal disabilily on medical condition, national omigin on anotslr3l. 408. Taxe: , A! � e: s ment,4, Hneumbnance! and Liens. Tic Par is ipa ry stall pay v it e n due all meal ( stale tax(s and assiessmcws on th( Sit( . pmiom 10 fimit Sale of th( pmgje(t Ill II ( Pa rtiaipa nt, the Pa rtia ipant st a ll not place on allow to It placed on the Silt am any part lhemeof any 10 Dace C]C/ 12 9219 4,116/1022 29 9-4C I A marl gag(, Irusl deed, ensumbranao on lion othen Ihan as expre,sly allowed by thi; Agnearnent. TI( Participant : hall remove an hana ne moved am l levy on attachment mach on the Site an a ti .l par Thereof, oe assume Ila ,wisfaclion thanealwitl in a roasonat le lime tut in anal event peian la a sale 1t eraunder. 1` athing he nein contained shall l e deemed to peohit it the Parlicipanl from contacting tic vatiditil on amount of anll tax acsos: rnenl, onaumbrance oe lion, non to limit -The remedie, avaW le to the Partioipan I in re; pecl Ihene'lo. 409. 9 ubmission of Evidence of Hinancing Clommilmenis and Loan Closing. Wiilhin the time esti t li! t ed thaneibn in tl a Schedule of Penfarmanae, the Partiaipati I shall exeeci! e roasonat la (liliganae iri an eflor 1a a t t, in and cubmi-1 to tho AIg ency evidenaa tial the Parlicipant has obtained firm and binding commitme n tc fon finari a in g ibe the purAlosa of ,,ecueing la a m of funds to be used fou financing IN dieecl and indinecl cost! of aequining 1t a Site (lincluding nafinancing tt e existing loari(j;),' ,,ecused Ill the Site, the construction al the Inillnovemant,,, and all olhea development costs relaiIng to tit Pnoaeet (lincluding, for a)iampla, ohlsila improvement:, development and building fee.i, anchite( tusal engines ming and 1(g a l ilea,,, finana iti g a os'ls, and o nanl impnovsmants , and opeeation of the Impiovemenli aftan earnpl(tion. 1lhe Agariay's f)iocutive Director aften review by the Agency's oaonomia consultant and legal counsal shall appeove oe disapprove suat enidanae of financing oomni hmants vrithin the time es lablished in the ScN duly oil Perlorrriance. Appeoval shall not IQ unraasonal ly wilhheld os oonditione(I. If the Agency's E?iacutive Diraator :hall noasonably disapprove any such evidence of financing, 1Ihe Exacu'live Director shall da so bi l written n a ti( a to the Par is i p a nl s tel ing ti a aea s ons for: uch d is approval and the Participant shall exansise nsasonable diligence in an eflor to promptly obtain and submit to -The Agensil new evidenae of frnan( ing. The Aganay's Exeautive Director shall approve or disapprove suet new evidenaa of financing in the sama mannan and within -The same limas aslabli; I cd in tI i Section 409 fon -The approval on disappnoval of It a evidence of frnanaing as initially , ubmitlad to the Agena,l. In the event, after the exercise all naasonable diliganae to obtain Clonstruction Financing, Par iaipant is unable to obtain adequate Clonslnucling Finanaing ibr the sow-truation and completion of the Project, Pariaillanl stall relurnl the full amount of any Di! tunsement5 Participant may have received form the Agency and neithes party it all have anal furthan obligation under this Ageeemenl and this Agnaamcnt shall immediately beaama null and void. Me obligalons of this panagnaph :Il all ba secured by a decd al trus-1 vert iah will be reconvallad upon aithan it a Ili recondition of the Con,itnuclion Finan( ing or the nepa)Imant of the Dist un: emenls previously made by Agency. ill d . Morlgage, Deed of 'Duus11, Sa Is ar d Ilease-Ha ak Pinar sing; Rights of Holders. 410.1 M on Ila gas, Deeds of Miusil, a r1 9 a Is a nd Lease -Hack. 11h4i Par icipant shal I nolify the Agency in advance al any mor gage, deed of trust ou sale and lease -bank financing not previously all llnoved pursuant to Se( tion 410, if the Parti( ipant Ilnopo: e s to enters into tt a same bafoee ( a mpletion of the construction of all of the Impnovements on the 8 its. The words "mor gage" and "deeds oiltrucl" as used hanainahen at all inaluda sale and leasa-back. 4'0.2 Holden Nol Obligalled Flo ConsIrucil improvements. Me holden of any morgage or dead of tnust aulhorized by this Agnesmant ;Iall not to obligated by the gnovisians al this Agreement to aanAnl( I or complete the Improvements or to guarantee such construction or aarolllotion. Notting in this Agneemant shall be deemed -lo on t actwiruad to permit or authouize 11 DCICSC IC/ 1391194v][6/9 21 ' 91-09 811 any sua h holden to devote 1 he Sita to any us( s or to constnicl any irn pnovemer is the nea r of hen d r n those uses on impra iia rn an s provi(It d fan or aul ho:uizad by i his Agneemer t. 410.3 Notice of DcfanIII to Mortgagee oil Deed of Miust Halderis; Big t IQ (Inuc. With nespecl to any mortgage a n deed of Irwsl 8nanto (I by Partia ipa r t as pnovided hens in, wt (neven I a Agency shall (la lin(r an )I natio( an demand to Par icipanl with rospeat 10 any bueatl on default by I a Participant heueunder, tl a AIgancy shall al 'he same time deliveu to each lol(lar of record of any marlgag( an deed of true E utt anizod ill this Algrocmcnt a copy of such no ice oil d(mand. 1'a natiaa of default :il all be ofilective m to the hold(r unless such natia( is given. East ;nigh holden shall (insofan as Ihe rights of the Agonay ane cont( rnedI have the night, al its option, within sixty (N) days afta r the neat ill a11 he notice, to curse on comedy on commence to cune on uamedy any ;rueh default nd a add the (Ia s'l II (r( a 11lo II a rnail gago dolt at d the lien of it9 mor gage. In IN en(n I possession of I e 1, ita (or parl ion theneof) h nequiiied'Io efilea Iua'Ie suaI euro an uemedy,1Ihe holden shall be de( rn(d to have Timely tuned or amedied iii it commences IN puoceedings nea(siary to attain posse.ision It ercof wiilhin sixth (60; dads, diligei tly pursues such proceedings lb aomplelian, and, aille(u obtaining possession, (liligenlly completes such cune or uemedy. Any sunt holden pnopeuly completing such lmpran( rn(nr s shall to entitled, upon compliance viith Ihe nequinemenls of 9oc'I is n 41 a a ij this Alg no a rn e nt, to a Relo se oil Constnua tion Clovenani s. �11101 Hailura of Holden 110 (lomplelle Parlicipantl lmprovaments. In any case wheue, sixty (60; dads aften default by 1Ihe Nrtiaipant in complalion of aonsluuc'lion oil Ile Impuovemenls unden 11 is Algnatmant, the holden of any mortgage an deed of Ilium treading a tier on encumb(uance upon the 1, ito, on any part thereof has not exe(ucis( d th( option 'lo aonslrucil, or if it has exeucis((I Ihe optior and has not pnoaaeded diliganllJl with conslnucilion, tho Agor a)1 may purchase Ile ma rlgago a n dea d all 1uusil by payment i o the holder a it the amount of Ihe unpaid mortgag( or dee d of lrwsl debt, including principal and it I(nesil and all athen sums seauned by 'Ihe mcrlgago on deed of Illus I. Iij 'Ihe cminership ail 1he Silo or any parl thereof has ii( sled in IN holden, II It Agency, it i1 so desires, shall to antitled to a convollance fnom 1Ihe holden to Ihe Agonay ups n pallmant to 1he holden of a n ams unt E qual Io II t sum of It t fallowing: a. The un paid mor g a ge a n deed a it tnust debit a t 'I he time 1 itlo bea a rn a vestod in Ihe holden (1(ss all approgniale anedits, including Mase uesulting from oalloation and application of rentals and oilheu income neceivod (lulling foroa losuue proceedings); b. Alll expenses actually incurred with respect to iloueclosune, including rea sonabla , tto meys' tie( s; C. The ne expensa, iii any (exo lusive of genenal overt ead', inaunied by t e holden -,s a direct ne.iult oil Ihe :int sequent ma( agement of tho Sita oil par Iheneof, d. The ac lual cost9 of ar )l improvements made by suah holder; and e. An amount equivalent 1Io the inle(ueC that would I eve accnued on d a aggrtgale of such -,mounts had all such zmounls tecome par oil it rnorgage or (Iced ail1Irwsil dabs and sual dabl t ad conlinued in existanae 1o'Ihe dale oil payment by Ihe Ag( nay. 41 CS Right of Ihe Agency to Cure Moritgage or Deed of Miusil Defsuh. In the event of a mortgage on dead of trust dellaull or breach by 1Ihe Par iaiganl priou'lo 1t a completion of the const(uuclion of the Impuovemenls oil any par thereof and d ( lailune of tt a holt or oil any mor gage oil 12 DOCSOC/I' 92 19 4n 16/(22 29 9-4 (&I (Iced of wusl ilo exerncise ils option -lo aonslrnucl, II e Agency may cure Ihe default. In suet aiianI, tha Agency st all be antilled to rc iml unsemenl ftiom -I he Participant of all costs and cxpensas incurred I `I tt a A gancy in autiing such defauk. the Agency shall alga be entitled I a lien upon tl a Site to the extent of suet costs and diet unsemenis. Any such lien shall be subor(linato to the eanslrua Tian financing mor gages a n deads of t rus-1 . 4110.6 Right of the Agenc,l to Satisfy Oil an Liens on 1114 Siile Af dii 'Ditln Basses. Prior to the aomplalian ail aotisilruwlion, and afcr Ila Partioipa tit las had a tie asonaIle lima la ahallenge, cuiiie an satisfy any liens or encumbnances an the Site, the Agetiey shall I ave tt a nighil to salisily anal suet liens on anoumt ranges, praiiided, howeven, that nolt ing in 1Ihis A gneamenl stall nequine the Participant la pay an mal c provision ibu the payn ani of any tax, assessment, lien or aharga, so.long as the Participant in good flailh shall oonlest -Ihe validity on amount -Thereof, and sa long as suet (clay in payment sl all not subjccl the Site -lo fanfei'lure or sale. 411. Ralaase of (anstnuation Covenants. Promptly after completion ail construction of all oil -ihe Impnovemenl;i neq uined by ilhis Agreement 10 be aomplete(I by the Par icipanil upon Ile Site (which stall a)ialude interiors Tenant improvements, landscaping and any axlenian signage), the Agency shall furnist the Par iaipanl viith a Ralcasa all Constnuelion Covenants upon viritten Iucquest theneilor 111 tl a Parlicipanl. 7t a Agency shall nat unneasonably withhold issuance of sunh raleasc of Clonsiruc-Iian Clovenanls. Such Release of (lans1ruation Clovenanls shall be a conclusive datarminalion oil salisilaclor)I completion ail the construction tiequiiied by It is A gneemant, and the release of Clans1rwalian Clovenanls shall so slate. Ailler reaordation of sunh Relcaaa (A(lans1ruation Clovenanls anal party then owning on Thereafter purchasing, leasing on o-lhenmise acquiring any inlenesl in the,Sile shall rat (tecause A sual ownanstip, punchase, lease or aaquisilian), incur any obligation or liability under this Agneamanl, relaling la the obligalian to construct and de`ielop the Impra`iamenIs on II a Ptiojecl. Howenar, such par 11 shall be bound by II c Agra cmenl la t a Reoatided A ilfecl ing Real Pica pc rty, the Ilion Inst rumen l s, y and any o l hen ins I numenl or tnansfa r, on altar doeumants estat lishing covenants on It a Sita in accordance with the provisions of this Agrcemenl. The Melease of Clonsl nuO ion Covenants shall be in suo h fo rrri as to pa rmi l i I to be nee a rded in the laeconden's Office all Onange Clounlsl. 111 1Ihe Aganay recluses on fails to furnist a Relaase oil Cons (ruction Clovenanls ilor II a Sitt altar wait en request fnom the Partin ipant, It c Agency stall, wilt in 1t irly (130) days of wnittan request lhetiefor, ptiovide ilhe Partiaipan l with a wnitten stalemnnt oil It a raasom the Agency refused on flailed to ilurrish a Release all Clonslnualian Covenants. The s-iailemenl shall also conlain the Agency's opinion of tl c ac1ons the Par icipanl must lake to obtain a release of Clonslrucilion Covenants. I11he season fan Agency's nofusal 1lo fiirniat a Ralaase ail Clansilrwolian Clovenanls is confined to the immediate availabiliily of spccif=ta items or malenials fan 'Ihe comploian oil mition finish items to the landscaping, on a Il ar minor and typical "punchlisl" items Ihm do not pnasenl health on sallety oaneert s, 'Ihe Agenoll shall isitio ils Release all (lans'Iruo lion Clovenanls upon the Paricipanl's posting wi'Ih the Agency of a bond, on othan seeunity neasonably salisflaotoryl la the Agency, in an amount nepresenting the fair value all ilhe woiik not 11C con pletad. If Ito Agency sl all hada paile(I to provide II a release of (Ions-lruation (loiiananls on a w6l len stalement of the seasons fan refusing or failing to provide such document within said flirty ill(l) day period, the Paricipanl shall be aanalusively deemed entitled to such Relaase afl(lanslrtialian Clovenanls. Sual release of (lanstrualion Clavananls stall nat conslilula avidcnae of aan plianae wilt an salisfaclion ail any alligation of the Participant ilo any holden allany marlgaga, or an2l insurer aft a 13 I1CIC4(Ia1/f2S219d-,ilf1101279! -QWb mortgage securing money lent -o fin,, tae i he Impmovemor is o:u construction of the Projecl, ora any par taraof. Such Wicase of Clcns-ruaIion Clc`ianans is not a no We of completion as referral loin tl a California Clivil Clode, Sed ion 3093. 500. COVHN ANTS, CONDITIONS, RHSIRICIIIONS AND RHPAYM DNI OHIJIGAIION 501. Use,,. "Hhe Particip,, tit covananls and agrees floe itself, its successors, iia assigns, and overg succasscn in inlarasi -o t1 o 5 ile or any par tt araof, that afler tt a Agency's issuance a 11 Ralaase cfl (latislruatian (Icuanants punsu,, tit to Section 412 of ti is Agroemen, t a Participant shall maintain, use, and oparala the Side for tic otl ar use than -,s , commeuaial, offlca and retail facility with approximately 8,M squane 1hol of g:ucss laasabla building anea davoled to the uses sgccified on gormitied herein, as meq uired in this Agreement in 4anibrmiity vaith the Iimi-lalions of the Entillemenls floc a pomiod oil twenty (20; years hiom the d�to of tic issuance ail the Wicase oil- (IQ nstrwalion Clovenanis pursu,,nt to SaOion 412 aUhis Agreement fan iIhe dale Ihe Agency was meq uired ilo issue the Release of(Ictisilruatioti Ocnanaws, whichevaraoaurs frust No use(s) other t1 an dose speaifiad I are in shall be parn illed viithoul the prion writlan approval of the ASancy (which approval the plg ancy may grant or deny in its sole dimes Iia n). 502. Operating Covenant. Fan a Tern commencing upon the disbursement Dale and anditig upon the twantia It anniversar)I lheuaof (l"Clpauatitig Period",, the Owner hereby covenants acid g moos to devote the atitine building on a continuous basis to the operalion of retail 9loras, comparable s 110 quality c merchandise and salas volume as cIthe d-, to l arecfl, to N ission Pramai ade localod at 16832 Ortega HisIway, San Juan Clapistrano, California. Exaapl with ti pnio:u wriltcn asnsenl of the Agena)l ilor each inslance, which consanl may be g:u� nlcd on withheld in the Agency's sc la and at solu-le disametion, the failure of the Clvtneu to aause t1 a Pnojeat to ba a paratod as provided herein for Chir y 1130 or more oonseautive days shall, at 1Ihe Agency's op'lion, ca nslituto a Defaulil I araundar; provided, however, thal the Clvinar shall not be in default oil This Sacilion 502 duning any periad that an,l oil the Clwner's tananls ane pmavented from operaling 1t o Peojeet due to (i; requirad an necassr ry renovation of ti a Improvements (r1movidad 11 a1 ti a pe:do d clueing which the Pra,jea l is nol c paratad as a result of the raic`ialiar of -Ihe Impravamanls shall in tic event axcead one hundred fifty 111501 d, ils , oa (ii; events oil forca majeure as set forth in Seation 601 hereof. Zlhe Opemaling Pariod shall be axtanded far each day of closure permiitled hemeunder. 503. Ienanil HEsllric0ow. Paricipant shall use -Ihe tou I gross leasable building anea on the Silc in the follcmfing manner; pravidad, I cwever, ti at the Aganay's Excautiva Uieeatoe in I is om ham sole and absolute discretion rn,;l approve minora dcviaticns froom 'Ihe fallowing conditions which ane raqueslid by t1 a Par icipaw in writing and provided further 1I a1' Par icipaW oamplias Witt any and , ll appliaable City raquiramanls in conncatia n viiih such deviation: a. It a secand floor leasable building ama may be used for office, pansanal on business sormice facilities, ora att or non-ralail uses as specified in Saatian 9-3.303 cflthe Muniaigal (lode fon -Ihe Tourist Commercial 1"TCI" di9lnict including, tut not limitad to 1Ihe folia viing : (i, Alacounlamis, attorneys, consullanla; (ii; Insueanaa agencies; Qiii. Medical offiaas; 1 ZI DC1490C/12g2Ig-hiI007279g-9096 Iliv) Enginaars, amchi'Iecls and plannems; Ijvj Religious, ihiailerrial on service omganizations; I1vi) Put Iia flaoilities; I1vii) Real estate offices; Ilviii; Tnaval agcncies; and Ilix) Full service laundr)l and dry cleanan business. Ijxj Massage henapy; I1xi) Small t usiness, vocational, professional schools; and I1xii) Financial bmal anage offices. b. AtI mcmaininj gmass leasable building anea no mcd for Ile abo`ic purposes Shall to occupied b;l netail tenants consislanl witt IVlissian Pnomenado in terms aflqualily of marat andise and sales volume, with an at.joc'Iiue and emphasis an genenating local nevenuas, and providing maail usens gcnema ink I igi `iolume sales. 504. Maintenance. 71 a Participant shall main ain it a lmpmovements d at c xisl on 'Ihe Site flmom lime to 'lin c in accomdancci wi'Ih the Agmaemenl to be Recomded Aflileating Real Pnoparty ti a covenants, as n clition, ma into r a nce obligat ions and of hen nti v ric tia ns a fl which st all remain in ef1i at until the expiralian of d a Clomrrunity Devalapmant Plan, hal is until July 13, 2432. Issuance of a Release of Construction Covenants by ilhe Agency shall noel affac Participant's obligations under this Sac' ion MI. 505. Rights of Access. 'lit Agency, for iilsell and for the City and otheu put lie agencies, a'I thein sole risk and expet se, reserves the uigt to entem the common areas on d a Side or any par d aracl which is owned or c antrolled by the Par ioigant, at all reasonable imas flor the pur Tose of const nicil ion, reconstruc tion, maintenance, repair or sa rvic a of a m I public impma ua ma w s a r public flaaililies lac ailed on 'It e 9 ite. 71 a Agency om such olher public agency exara ising such i i� t t oil enlry shall Make all uemanable measures 'Io minimize intanfeuence with the operation of t usiness on 'Ihe Site and shall pnompily repair and ncslome any damage caused by such entity to -Ihe Site om the lmpmovements Ihaneon. Any suat antr}i it all be matte anl;l aflem reasonat le natiee to and aansenl of tta Paricipant, and Agency shall indemnify and hold Parlicipanl harmless from any cosls, claims, damages an Iiabili-Iics pertaining to any enlmy. The Participant agneas to coopemale with the Agency in providing ils conscnl and such access, and acknowledges that the Agency may obtain an adminisira li`ia inspection waniant or ad or aggnopmiate legal or equitable remedies la enfarce its righls gursuanl 'Io this Seation 505. This Seatian :1191 shall nol be deemed to diminish aml nights tt a Agency, the Cily, or awl others public agencies may have withou'I nellerenea to this Seation :10:1. Tl e righls al ascess set 11ott in this Sac lion 949 shall remain in efleat until the expimalion of tt a Redevelapment Plan. 506. hOndhQriminalion. T1 Panicipanl covenants b1i and far i'Iselfand any sucaessans in inlemesl that Ihare stall be no discmiminalicn against or sgmagation of any pensan on gmatip of perosons on aacounl al mace, colon, crced, rali� ion, sex, marital sta'Ius, physical am menial disat ilily on 15 DOC SOC/ t 2 47 14 u WC 22 29 9 -0a M medical condition, national origin or ancestg1 in the sale, lease, sublease, tnansdin, use, occupancy, 'tenure an en'oyment oil the Improvements an the Site, nor stall iIhe Participant itself an any parson claiming undon or lhnough it establish on parmil any such pracilice or pnaclices all discniminalian on se g nc gation with nefenencc to the se lecl ion, loa a'1 is n, number, use or oca upa ncy a 1 tenants, lessees, sublenants, sublessees or `iandees of the Improven ants on the Site. Tlhe fanegoing covenants shall run with IN land. All deals, leases or cornlracils wish nespac'1 la the Impnovemernls oil -1he Site shall contain on be subjaat to substantially ilhe folio viing no ncliscnimina lio n a n nonsegragation clauses: a. In deeds: "The grantee hanein oavananls by and for I imself on herselfl, his on hen heirs, exeouta ns, administnatans, and assigns, and all pensens claiming unden or through Vhem, t1at there shall be no disaniminalion against on segnegation oil, any person on group of pennons an aecounl of any basis listed in subdivision (a on (d) of Section 12955 of the Ga ve rnment Clacla, as lhosa I ase s ane defined in Sections 1397(, 12926.1, subclivisikn (n) and paragraph (11 of subdivision (p; oil Section 12955, and Section 12955.2 of the Covernn ant (lode, in IN sale, lease, stet lease, wansllen, use, oaaupancy, ienuia, an enloymew all the promises hanein conveyed, non shall 1I gnantae ar any penson claiming unden on Ilnough him or tar, eslabiish an perrriil any praetioe or pnaCiaes oil disaniminalion an segnegalion with raflanenae la 1he selection, laaailion, numban, use on occupancil all tenants, lassoes, subtenanls, sublessoas, or vandaes in the pnemises herein conveys d. 7ha floregoing cove n a n I s sha 11 run with the land." b. In leases: "71a lasit e henein covenants by and for himselloil I anself, his an hen t ains, exaculors, administnatans, and assigns, and all pennons claiming unden on through him on hen, and this lease is ni ade and aacepted upon and subjecl 10 1I he follaviing as nditions: "Thal there shall be no discnimina'lion agains'I or segregation a I a ny penia n or gra up of pensa 113, on account a I a ny bas is lislad in subdivision (a) an (d; all Section 11911 of 1he Clauernmant Clade, as those bases ane defined in Secilions AM, 12926.1, subdivision 1m) and panagnaph 1111 ail subdivision Qp, a8 Section 12955, and Secition 12955.2 of the Clauernment Clacla, in the leasing, subleasing, transferring, use, aecupanay, tenure, an enjoyment oil the premises hanein It asod nor shall the lessaa himse lion herself, or any person claiming unden oii through him on hell, astablisl on pem it any such pnactice on piiaclices of discrimination on segnegation with neferance 10 tie selection, location, numt or, use, on occupancy, of tenants, lessees, sublessees, sul tenants, an `iandees in the pnemises henoin leased." c. In aonllracls: "71era stall be no disariminalion against an segnegation at anil penson on gnoup of persons on account of any basis lisled in subdivision (a) on Qd; ofl Seation 12911 a1 the Government Code, as those bases ane defined in Sections 12926, 12926.1, subdivision (m and panagnaph (1; al subdivision (Ij) of Seclion 12955, and Section 12911.2 of 1he C aue rnment Cada, in the sale, lease, sublease, mansien, use, occupancy, tenure, an enjoyment of 1he pnemisas which ane the sut jest of this Ag naan ant, tion it a 11 the g nantea an any penson els iming uncle n an tt nough him an hen, establish or penmit any pnaa liae an practices al discniminalion on segnegation viith ra ila na nae to the selection, la vat ion, numban, t sa or occupancy a 1 tenants, lessees, subtanaW s, 16 ]XICKIC113 9119, v 16/621199-048 d subles seas, or van Claes in the premix ea Nine in a onvoyed. 11he fora I oin € ac iia nants it a 11 nun with the land." Tho covo n i rats i gainsl disc piminw ion, se for h in this 9 action '106 sh, 11 continue in effa at in po rpq tuity. 507. Repayma n I abligail is n. P, rl is ipant shall rc pay d a C la r 1e pants Loan in aca ondana c with tI a Pnomissor±I 1, o to. 'Rhe Promis so my Note s hall be secured by Ihe Deed a 11 "llrust. 508. Eflaat of Violation of the Terms and Arovisions of Ihis Agreamenll. 7hc oblil ations and covenants cslabli0 ad in this Aj neomanl, as set forth in Secl ions 10:1,202,403,405, 407, 409, '101 I hough 196, inclusive (the "Covana n Is"; shall, without ragard to leaf niaal classifiaaliari i iid desil nation, be binding fon tI o benefit and in flavor al the Agency, ils suaaessors and assigns, as to thosa covenants which are fan ils Icnefit. T[he soilonants aontainad in dis Agrc ement shall nemain in ellfecl fon the pa niods specified ha nein. 'Dhe Agency is daamad tl a I anefiaiaril oil -Ihe terms and provisions of this Agreemant and of 'Ihe covenants punning witl the land, for and in its own nights , nid for the purgosas of protecting tI a inlcrasts o111he community, nd othap paries, public or pnivale, in whosc faiion and for wl ose benefit 'Ihis Agreement and Ihe oavenants running wilh Ihe land have bean provided. Me Agreement and d a covenants I arain sI all run in favor oil 1[ c 41€ ency, without negand la whatl or the Agency has been, liamains or is an ovincr of any land a n inleliesl 1Iherein in the Site or in 1Ihe Community I]avelopmernl Projeat. 11he Agena�l shall have Ihe righi, iillhe Agreemonl on covenants ara broached, to exonaise all rigl is and rcmcdies, and to maintain awl actions or suils at lav+i an in equity or atl or proper plia aeedings 'lo enfora a Ihe culiin € of sw h brc achy s to veil iah it or any o I c r beneficiaries of tI is Agreement and 41 or la ri ants may be entitle d. 600. GM ERAIJ ]MROVINIONS 11011. Noliaes, Tlamands and Communications Among the Narllies. VVInitlen notices, demands and i ommunications I atvieen Ihe Agency and 'IIe Participant sI all be sufflcienily I irlan ill delivered by hand hand a noaeipt Ihoneilor is obtained on is nelluscd to be givenj, sent 111 leleaap3l on overnight deliver)I service, an dispa-lched by negislorad or cer ified mail, postage prepaid, return lieceipl nequested, to: Ali ancy: San Juan Clapistaano Community Reclarlalopment Agency 32400 Paseo Adolan'lo S a n Juan Clapisnano, (1.41 9 I till AtI c nl is n: ldxeautiva Tlineatc n with a aopy la : Stpadling, Yoas a, Caiilsan & Aau'Ih 660 Newpor Cenlan Drive, Suilc 1600 Newpor Bea ah, California 9: (NO Atlen'lion: llhoma9 P. Gnarl, Jlr. Pa rl icipant: 26755 VHRIaUGO IILCI 26755 Vendugo S I nee I, Suite 200 San Jus n Clapistrano, (la lillomia 92675 A1'len'lion: Bnic Allman, Managing Memben 17 DOa 9 OG 12� 219,N] ]07 27 99-9 08 6 v i1h a a o py to : Lave Clffces of Brian P. M cGi Ivra y 1(1(133'verrlura Boulevard, Suite 800 Ena ino, Cla IHorr is 9143 6-7 8 65 Attanlian: Brian McGilviiay Such v riven noliaes, demands and communications may be sant in the same manner to suoh otheli addiiesses a s either par y may from clime to linea designate bil rna it as pliavi(lmd in if is Seclion 601. Any w6tlen no'l ice, demand a n communication shall be effm c-1 hie upon rec eipt . 602. Clonflictls of Intleres 1. No memban, afficial or employee ail 'Ihe A gancy shall halm any personal inlenest, direct o i indinect, in 'This Agreement, non shall any member, official on employee par icipatle in any deaision isolating to the Agnamont v f ial afileats his personal intones -Is or Ile inlenmsta ail an),l cornlanation, parinenship on msoaialion in v Bah he is dineatly on indirectlly intaro sted. 603. Dnfortaed Delay; Exilension of 'Illi oil Pi iifa rima nci . In addition to specific proliisions al tl is Agneemont rclaling to tolled peniads and oxtansions of time to perilorrni, perlorrnanca by any party heneunden shall not be deema d to t e in defaull, and all perfa nmanaa and Oar dates speaified in this Ppnaermm shall tc extended when delays on defaults ane due to: wan; insurraalion; slrikei; lackouls; viols; floods; earhquakas; fiims; caiiialtias; eels all God; acts al ti a putlic enemy; apidamios; quarantine liestniclions; flneighl embangoes; lack of lira nsporall ion; governmant,1 restrictions or piiianily; liligalion; unusually sevelie wealhen; inability to socura necessary labon, ma'lenials on laals; delays of any conlraclor, subcontnactoi on supplian; acts on omissions of any of the olhen paries; acts an lailune,i to act of the Clity an any o'Iheii public on government,l aganay an ernlily (olhen Than the acts on lailunes to act aI'Ihe Agency which shall not excuse panforrmance by tha Aga nay); on an,l olhan causes beyond 'Ihe conlraI on v ilhoul 'Ihe fault of tie party alairning an cxlension oil'lirne'lo nerlorm. Notwithstanding anything to the conlnary in this Agneemenl, an oxtansion oil time fon any such cause shall be fo i the peruod of the anlonced delay and shall commcnce to run illcni the lime of ti a a a rnma n o ement all 1he c ausa, if na tis a by the par 31 o la iming su4 I exlens ion is s evil to the olhen party within thin y (130; dads a I the commancemant of the cause. dime;( of parilomilance under this Agreornow may also be extended in waiting by the mutual agracmenl of A gency and 1he Par icipanl. Nolwilhstanding'lhe lonegoing pnovisians al This 9ac'lian (103, 1he Par ioigant h not cnlitlad nursuanl to this Section 603 to an extension of lirnc to ncrilorrni bec ausa of past, pnesont on fuluno dilficulty in obtaining suita t lc permanent financing fan 1he as ns lruc Mian a l the Impra liemenls. 604. N o nliabiliq of C fflcials and Employe es of the Agency. No nim mt er, of;f'iaia 1 or emplayae of the Agoncy or 1he (lily shall be personally liable to the Paricipanl, on any suaaessors in intoned, in the event of any dcfat.lt oii broach by It a agency i1cn the Cily an for any Dalault, or an,)l amaun whist may become due to 1he Par icipanl or an),l successors, on on any of ligations under the tarms a l this A grearnonl. 605. Cla mmencement of Aga nay Raviaw Heriod. Ile time peniads set fon h I arm in for the P gency's appnoval of agreaments, plans, cdnav inis, or olhan info rmalion submitted to Ihe Agency b`l 1he Par is iganl and for any olhen Agency consicdanation and appnoval l eneunder whish is conlingant upon documentation sequined lc be submiticd ty tic Paricipanl, including willalt 18 DOC SOC11191 194 v 161U 29' 99 -01 F i 1 limit. tion any rcquesle( approvals under Sao ion 101 herieof, shall only apply and commence upon the Partiaipant'a aarnpIota submittal of all if c naquine( information. In no evant shall an irrcompkle submittal by the Par icipani lniggeri any of the Agency's obligalions of review andilor approval hereunder; E rovidecl, howc vei , ti at tl a Agency shall notify the Par iail ant of an inaoml la a submittal as saan as is praOicable and in no avant later than the applicable lima sol forth far tt a AIganoy's action on the par icular rte m in q uc sl ion. 700. T HFAUI1TS AND RHMEDIES 70L Defaulls -- General. Sut jao to the penrritted a*Qnsions of time and lolled periods sat forth in This Agieemenl, failure or delay by any party to perform any term or provision of 1I is Agwemenl eallslltutas a Default under 'Ihis AIgreement. The pary who so Jbih'or delays muse immediately aammanae to cure, oaniecl, or iamedy such failure or delay, and shall oanrplata such cure, corrcclion or remedy with diligence. The injured pary shall give written notice of defaull to the parol in (lcfault, specifying the defaull complained of by t c in party. Hxcept as required to piolecl against furher damages, tf e in.lunad pary may not instilule Iroaaedings against the party in default until tl irt) (130; days aflen giving such notice or, provided lhal the partil is grocacding with diligence to cute, sual greater lime as may be neaassary to cui a gilian the nature of the Dalault. Failuie or delay in giving such notice sl all not aans-Auto a waives of any Defaul , nor shall i1 change the time of Defaull. 707. Legal Aelions. 702.1 Insililu lion of Legal Aclions. In addition to any other i igi is or remec ies and subjaat to the restricliona in Seclion 701, aril part} may instilule lcgal aation to cu c, coruect or remedy any Ilafaull, Io reealiar damages for any Defaull, or to attain any other remedy consistent with the puglases of this Agrcemew in the Superiar Clarirl of the County oil Oiange, Slate of Clalifornia, in an appropdale muniaipal oatirl in that couWy, or in the Fcde al District Cour in the C oatral District of California. 702.2 Applicable Law. 71c laws of Ito 9tata all California shall govern the interIllratation and anforcamont allhis Agreament. 702.3 Aocep a nee al Service oil Flra cess. In to overt tl at anll laga l arbilratia n or action is commenced avirrsl the Aganay, service of process on the Agency shall ba made by personal senuiac upon the Aganay 9aaretaryilClitr Cllcnk or in such otl ar manner as mail ba provided by law. In the cvent That any lagaI action is oommanced against d a Par iaipant, seniiae of pi ocess on the Par icipanl st a 11 t c made by parsonal serrrice ula n a managing memba r of the Par is ipa nt (los aa rpoi ale offican if 1 he Par i(ipant is a aa rpoi ation) and st all be valid whether made within or outside the S1a Ie of Clalifamia or in sual att or mannar as may be provided by law. 702.4 Allilorney's Foes. Woept as otherwise expressly praiiided in this Agreement, in tl a eiiant any legal action is ins itu14d between � gancy and Paricipant an any att or member or parner of the Parlicipanl or its suoaessor(s) and assign(s) in aonnaction with this Agreement, then the prevailing pary stall to entitled to riecoven from the losing party all of its coats and expenses, I9 1101,90C1129219, ml(110727914016 including court a a, is ari d new onable attorneys' fee.,, and all fees, a as is, a ri d a xpensf s incurre(Ian my appeal on in collection of any judgment. 703. Rights and Remedies Alue CumulWive. Emit pi , s otherwise expressly s la led in d is Agnaemenl, the righls and nemadias of the paries r re atimulativa, and the oaiaraise by enlhen 1 arty of one or moue of such righls on rernadies sl all nol pneclude ilhe exencha 111 ii, a1 'II a same on diffeiient -I irn c s, of any oil hen rightn a n nemedies fa ri 1 he same Di ilaull on any o-1 het i Uefa u It I � I any o-1 het i party. 704. Inacilion Not a Wa He a of Do fauF. Any failure s on da ]a ys by any par y in assn r ing any of thein righls and nemedies as to any Default shall not opanato as a waiver o1 any Dibull on of any suat nights on remedies, on depiiila such pary of its righl to insililuto and maintain any aclions on pnoceedings vat iah it mail deem necessary to pnolecl, a, sE r on enfanaa any suol nights on nemedies. 800. SHECIAIL BRUN ISIONS 80:1. Indemnificallion of the Agency. The Paricipani agneas to prol( at, defend, indemnify, I old harrrile;i s, pay all cos l s, and pnovide a da fi ri se for Clity i nd Agency and tha in offio ars, boands and arnployacs in any , a lian tit a (hind pary challiriging tha iialidity, applicability, or inierpn( Cation of This Agneemeni including, wilhoul limilalion, an action at allangirig tl a ability oil the Agenoil to pnovidt tl a Par icipant wi-lh tl a A gency A:Isislanot . The City and Ageno�l shall I ave the nigh, but not tl a at ligation, ilo defend any such action. When Pavicipaml prailide s sual doilanse the Agena,l will not take ac lion on will not f, it to act so as to allow a default judgment to t a U l an. In addition, Clilil and Ageno�l stall pnovide naasonabli assistance la Parieipant in defending any such action at no expense ilo (lily or Agency. Such assistance sh,, 11 include (i; rnakirng availat to upon neason-,ble police, Cily and ler Agency a fflcials and (mployeas who ane or may bE witnesses in such action, and (ii; pnovision to Par icipant of olhen inlorrnation vaithin the custodil on con'lrol of Clily an Ageno�l that is re lc vane 'lo the subja a t m,, tta n of the as tion. The Partioipanl shall I ave Il a of ligation 'lo defend any such action; pnovided, howaven, Thai this obligaiieri to defend shall nol ba eilfeclive if and ilo tl a e Mont shat Partiaipant delarmines in its icasanable discretion ihal the inilenests of the paries justifj a compromise an a seckmew oil such action, in vi[ iah naso Par icipant shall compromise an sattlo such action in a way ihat fully pratae is Agonal,l and (lily from any liability or obligation. Paricipant's obligation and night lo defend shall include the right to I ine Isubject to vinitlen appnoval bit the Aginey and (lily,' attom( `Is and exper s neo a s s a ry to deilend, the nigi t to pnocess and settle neasonable claims, thf night to to enter info iieasanable sell lement agneemenis and p,,y amaunts as nequiro(I by the terrors of such sell lement, and the nigk t to pay any judg rn a n is assessed against Par icipant, Agency, on Cli 111. If Par is ipan-1 de A n ds any suet as tion, as as l forth in this Section 801, it shall indemnify and hold I armless Agency and (lily and tl a it officeus, employees, nepnesenlatives and ageni,i fro m and against any claims, lassos, liabilities, on damages assessed or awanded against aithon of Them b`1 vaay of judgment, sottlamant, an s ipulation. Thi Par icipant furi hen agrees to prolect, defend, indemnify, ha ld harmless, pay all cos Is, and puovide a (to fanse fan City and Agency and It air offiaars, emplo,loes and boards in ariy ae-lien by a (hind pary fan personal injury, including dealh, property damage on othan damages anising out of an nelaled to the oanslrm lion and aperalion olthe Projaci, such as fon ixampla, and without limilalion, a slip and fall of a patnon, guis'l, on customer o1 a nelail esti t lishmant. The term of such foregoing indemnification shall be unlit the expina lien of tl a Medevilopmint Pian. `the foregoing obligations. 20 1XICKIC/ 17 91194v16/1'A 7 99 -00 8 6 shall nol apply if,uch in'up l a damage is solely due to the negligent oh inton Iion aI acyls on omissions of t1 a Cli y a r Agency or the it of& ars, l oaud, on employees. 802. Real 1Hlslaile Clommissions. Me Partic ipant nephesenls a the Agency that ih las nol engaged the services of any finder o: broken and hail it is nat liable for any seal e., la a commis; isns, b al ar's fees, or finds u's f( es which may accrue by mean=, ail ti is luansac lion and agraas la hold harrai(s s th( Aga nay hiom such commit s ions on flea, a; a u( all( g(d to b( due fhha ni t h( parry making sue I nepre: ental ions. 'Hhe Agency nepnesanls 'o tit Parlieipant that i has not engage cl the services oil any finclar on bra I (r and 1 hal it is not liable fon any real aslale commis s ions, bi a ke 'i Iles s, a r fin der'; He( s which may acc u( by m( a n s oil IhL uan,act ion, and agree: 10 hold harmless Ih( Participant from such commis sians o flea, as ane alleged to be duo I1om the par making sucl aepnesenta ions. 803. Suaeessors In Inlenasll. The to rms, covenants, as ndilions and net tnictiom of hi, Agi eemenl shall ext(nd to and it all b( binding upon and inura to the benafih of the heins, (x(cu-ors, adminislnagors, successors and assigns alilhe Panicipanl. 804. Amendments ilo this Agneement. the Participant and t1( Agency agree to muhually con; id(n n(asonable r( quasi: fan amendmen s to this Agreemont which may be made by lending instihu-ians, or Agenc3l's counsel or financial consultant, pnovided such ueque>tt, ara aansisl(nt wihh his plgneamont and would not substaritially al er he basic busin(ss -errw includ(cl lerein. 711e Agem y's Hxecul ive Dir(c or sl a ll hav( 1 he aul houity lo h ,n1( in1 ergra a ian s, waive provisions and enl en into amendments of 1 his Aguaernenl on bel all of +c Agency so la n g as sola h ac is ri s da nol rub: tan ially at ange tl ( uses permitted a n the Sit( an he financial provisions of tl is Algneamant as ip(c ifi(d herein and as agreed to I.)1 he Ag( nay Board. All oth( n via ivers on am( ndmen s !hall naquina tl a considenalion and waitlen con; enl of th( AIN ency Hoard. 505. Enliue Agrecmewl, Waivers. "Hhis Aghleem( nt may be : ignad in c ountarparls, and is exeautod in three 0 dul li( ale originals, each of which is deamad to b( an aniginal. I I is Agreement includes pages 1 tl nough as and Attachmen r as. 1 1huough 8, whial constitute tl a enliue undeuslanding and a€ seamen ofth( par6 s. 'lhis Agna(men inlegua-es all of the tarms and condition, mentioned l(rain or incidental heneho, and :uH(rsede: all negoUions on previous agr(emens be -ween -he parties on th(iri puedew:ions in inleae: t witl aspect 10 all ou any par ofjth( subjecl matlen heueof. All waiveus all th( provisions of this Agroemenh must be in wnih ing by and exec ut(d -he appnopriato aulhouiti(s of the Agency and -he Panicipanl and all amendments heal o mu: t le in whiting and executed by the appnopniale authoii- ie:i oil hhe Ag( nay and -he Partia ipan . In any ciucumstanaa where under this AI€ n(anien' any party is required a appnova of diiappnove any matt(n, appnoval shall not be unraasanabl)l witl I ( lel, conditioned, and( layed. 8001. Exc a ul ion oil Agrea m o nt. 11hi i Agneement, of eu I e in E a l l nov( d and aut honized by the Ag( nay ruwiV be executed by Participant within eighlean {118; day; a itic h approval and deliveued to -Ihe Agency. WI ( n t xecuiled by'Ihe Participant and dalbi( nacl to the Ag( nay, tl is Agr( emen must be ( )iacu-led and deliveued by the Ag( nay on or t afore lhuee 113; clays after signing and d( livery of his Agneement by Pan icipanl or ilhis Agr( ement shall be Ma id, em al t lb tl a extant 1Ihal tl ( Pan icipanl II DOMOG129 ISd)i1(11072191-C 016 shall comeW in writing ilo a furl heii exlemioii oUime fan the aulhouizalion, exeoulion and doliveryl of This Agre emenl. The Dale oft[ h Ag nae mend shall be I I a dale when it s r all I ave been appuoved r y acl ion of 1 I a Agency. [Signature block begins on following page] 22 DCICSCIC/ 1 a 93 I9 4 v 16/a 2329 S -Oft &I IN WITNESS WHEREOH, th(i Agcinc y ai d the Hartic ipant hada Signed d is (Iminer Participation Agl eem(i nt on th(i respective dau s so t 11or h below. "A GHNCY" SAN TUA r CIAPfITIRANO COMM UNI7'd RHDEVHLOPM HNT A GHNCY, a gul lic t odil c orpovate and Ac litic -G HSI: G(" Cha irman A A PHROVED AS T )J?ORM: Strafing, Yocca, CaS Rauth, A18ency Special Cou 1 11 ted: APHROVED AS '10 NORM: Counsel l to "HARTICIPANT" 26755 VERDUGO, DLC, a Clalifornia limited liability company Hyl: .0 Its: 23 DOCSOCI I2 9a 19 i 1 i Vo: �219-001 tl AIIJACHMHN TI No, 1 SITH MAP "Mai �I 1 DCIC"C'CIIs"! 2l54v1o1/0::Z q -f ogtjBN7 ATTAICIHM N©.l-] ATDACHMHN T NO. 2 SITH REGAL T HSCIRIHTIM flat 4, of 'lira a t 114, in tha (lit) of Sa ti Jv a n Clapistaano, County of Onange, Stale o1l (la hilom is , as pen map ne a orde d in Ha a k 11, Pago 21 of M isa a Ila neous Maps, RE cords or Clnatigo County, California AITIACHN Er 'H NO. 2-1 17CICKICI: 92194vIe/1 X2,9+1-01 86 ATIACHMErl 71 NO.3 SCHH]IULH OA PHRFORMAINCE r CIT L 1: 1. Days ane calendar) days. 2. The Radavalapmienl Agency and the Plarioipanl may, by miuttal wrililen agraeniiant, amend or modifij any ilatni contained herein of the dale fol parformance. The Haiacu live Director Alhe Agency is herab�l authoiiaed to approve minor amendments as set farh in 11 is Schedule of Plei flornlanae on behalf A -Ihe p 1 anay. Any ama ndmienls deamiad major shall be submitted to -Ihe Redevelopmienl Al anay Hoard of Direatol s for considenalion. The (lily is no -1 a party to ,Iha Agreement and is not bound by the Aima s set forth herein. BUILDIN C APPROVALS 1 Submission of Construction Drawings to City. On or before February 1, 2010 T he Partia ipa n l shall submit o o ns V nra lion drawings, public irnprovem(nt plans, landscape plans, do rn a lil ion plans and sua t oth(n documenl7 a9 may be i easana t lil required by the (lily for review and evalua l is n wil h r espe c,l to the con ilruotion of the Projeat pursuanl a Section 303. Participant may submit these plans to It Agency and Clitil coneunently br plan the a k. 7 (lity Ilan Cheal Approval. City shall eamplE to City shall provide comments on firsl plan i-ls building plan cheal appraira I. check within 19 business da31s of submi'Ital. Par icipant shall provide n vis ions to first plan check commends witl in 13 business clays al neea illt of comments. 11he City and Pa rtie ipa r t shall respond wilt in 10 business dads II eras ftar fon east a dditia na l ll la r check hound. 1 (lompletion of Huitding Plan Cheek and Issuance Lpon sati38aation a1 all conditions 08 of Cla n sll nra l is n Permits. City shall i s su( � ppro r ra I ilou buildings, public cons Inuction perrnits. improvement, landscape andJoi a then required rraviews and payment of all mquitred building permit and development impact fear. 4 Submission of Insurance Certificates and Prior to the commeneament of Frdorsements. Par icipant shall sutmit aonstnucrlion. (lerlifrualles of Insurance and Endomemernts la Ageno3l in aacoidwitt Saelianzlgl atic1411 a8lhis Agreement. A TIACHM Er 7 NO. 3-1 DC IC S 01/11 9 219611 d/M 21 9g 4 08 6 A11TA OHM HN➢ NO. 3-a DOCS 00129 215 4/119/07 2] 5 9-9 019 I Apusoval of Plans. Participant shall have Prim a aommancemenl of goading. appnoved plans ioai site goading, ulilitias and public impra )ie marrl s. CONSTRUCTION 6 Clans ruction Manages. Participant stall submi No, less than two weeks prior to pooposal for Gononal Clanslruatian Manages to commencemart of demoli ion and file oveoa a e sil a da `ie la n me r t. pre pa ra l is n. 17 Commencement of demolition, site preparation, Wli lin 11 days of exaaulian of GCI oadina & t gilding impraiidmenls. conlracl. 14 Rahass of Conyiiuclion Clariananls. Agency la Within 30 days after Agency ham fumisl Par1icipanl wilhaRelease alClansirmalian conclumivaly do orminad tial such Coveranls upon the aomnlalisr ai the constrnclion irnnnovamorls on -he sile lrnnmovements. lave been 9athIaatonilycomp lell ed. A11TA OHM HN➢ NO. 3-a DOCS 00129 215 4/119/07 2] 5 9-9 019 Al TACHMHNT NO.4 REDDASE OU CICIN 911 RUC7 ION COVEN AIN T S RHCIORLUNG REQUHSTHD BY AND WHHIN RECORDED N AIIJ 7CI AND SET LI IIAX S7A7111VIHNTS 10: 91an Juan Clapisimano Communily Medo v(la pmt rit All c ney 314(l (I Pa seo Ada la nta 91 a n Juan C la piss nano, CA 92675 A I to ntion : Sjaee Above TIN I ins fcr ReeonlWs Use This dceunient is e?ierript pram tl a pa3pieut oil a reeordinp fee gursuant to Glauernnent Code' ea tic n Mel. REIIEA SE OF CC N STP IUC TIC N CC MENA NTS Thais RFILHA191H OF CION S7 HUCT1 ON COVENAIN T S (th( "Release") is made as of , 200_, by 1 he between tit SAN I JUAN CARISTRANO COMM U I I7 Y RDDEVI]LORMEN7 AGENCY, a public lad`I corlorate and lloliiic (1homeina1lem ueferred to as "Agency and 26755 VERTIUGCI DLC, a ClaIiibmia Iimited liability company iJherainaftam meferrac to a s iI he "Par icipani 7. AHCI71t IJ.SI A. the Algency and the Participant have owemed into that certain Clvinor Particigalian All noc niont (1Ihe "OPA dated , 2008, conch ming -Ihe radevelopmenl of certain meal pmopery situated in the Clity oil San Jlua n Capistrano, Clalifornia w mane dully described in Bxhibil AI attached hometo and made a par f crc of. 411 t apita liAe&emis not defined heroin shall havti the maaning set forth in the CIPAI. B. A9 mefaranced in Section 411 of tic OPA, the Agency is magluimed to ilumish IN Parlicipant om its succeisoms viith a Release oil Clovenants upon oomplalion at conslruclion of the Impmariemenls ilas defined in Stctian 401 oil the OPA , whial Roleaso is roquimad to be in such forma as 0o permit it to be meoanded in uhe Rec ordem's office of Omanga Clauntil. `phis Relt ase is conclusive ditorminalion of sa lisfacvogll t omplelion of the construction and c avelopmew oil the Impmovements mequimed by the OPA. C. 'Dhe Agent _1 has conclus hic ly do terrniint d that such constmuction of the Impmovemenls on the Site has been sat isfaclomily c ompla led. ATDACHN ET TI NO. 4-1 DOCSOC/17 91 194 v ] Eva 21199 -oa 86 r CIW IHBREAORE: 1. As pnovided in the OPA, 1Ihe Agency docs hereby aertiily 1ha-1 ti a acns1lrivalian of -Ihe Impnovemants on the Sita has bean satisfaalonily performed and comple'led, and 'Ihail such construction complies witt tI a CIPA. 7. Tl is Aelewe of Clovenants Baas not constilute evidence of complianaa Mull on sa l i s fa c l ion of any a 1 I igat ion a l t ha Pa rtic ipa n I lo any t o lc la n of a mortgage on any in s uner of a mortgage secunily money loaned to finanna the wocic of conslnuclion al Impnovemenls, os any parr 1hewof. This release of Clovenanls is not a no -lice of completion as neilerrad la in Section 1097 oillhe Claliilonda Clivil Clode. TI a release of Covenants does not conslituta a aomplalian and nalaasa oillhe covunanls unden the OPA excapl the at ligation to canmruia l it a Impnovemenli. i[.Signailunu begun on Jc1NoH ingl page) ATIIACIH MINT NCI. � -2 DOCSOC/ 17 97 19 4 v 1610 27 29 9 -Oa 8!I IN MIITNHSS WHHREOF, tha Agena;I has 4mcuted tl is Release as oij the dale set lorh above. AT7HST: Agency SeanataD AHHROVHII AS 'HO FORM: Stnadling Yoac Catllson & R� u1l , Agency Speais I Counsel AGHNCY: SATS JUAN CAHISTRM CI CIOM MUNITY RDDHVDLOHMEN7 AGENCY, a g u I Iia I a(1)1 aorljanata and politic Chaim � n 1HAR11CIPAl4'H: 711799 VHRDUGO LACI, a Cal iforr is limited liabilily aompany A'➢TAC IF MHNT T U. 4-1 DOCSOC/ l7 9119 411]6/(2129 9 -II (Btl HXHIBIT A 74 AITTA( HM HNT NO. 4 II HGAL DHS(RIHTIION Lot 4, c I Tnaat 134, in the City of San Juan Clapislnano, ClouWy c i Ouange, State A Califs mia, as pen map ueaonded in Book 11, Page 23 of N i�callanac us Maps, Reaondi (n Onange (I(unty, Clalif( rnia HXHIBITI A TIO A7TIACIH MHNT T (1.4 DOCS CIC/ 129 `< 19 4, i 1(1/07 27 9 9-4 0j 6 ATAACHMHN I NO. 5 MEMORAN HUM OF AIC RHEM HNT RECICIRDING REQU119'IH11II BY ) AND WIHIIrN HWORDHD MAIIII TCI ) A IND 9 HND 1AX STA`fl3N HT T S TCI: ) San Juan Callistrana Clommunity ) lAedevelopment Agenay ) 12400 Pas eo Adelanto ) San Juan Call intra n c , CIA 92675 ) Atlention: i Space � Iborie This Line fo r Ro cc rdor's Use Vis document is exempt iharr d a p,jrr4nt of a ro larding flea pursuartto Go, ienimant4ado Iuatior ;17183. MEMORANDUM OF AGREEMHN7 This MEMORANHUM OF AIC RHEMHNT (the "Algreamanl") is enlened into on , 2008 by and between the SAN JUAN CAPIS7RAINO (IOMMUNITY RFIHEVIE LIOPMHNT AIC HNCY, a public body aorponate and politic (heneinaftar relaned to as "Algancy") and 26755 VERDUGO LLICI, a California limited liability oomllany (haneinaflen uafaned to as tic "Partiaillant"). AECI7l4L61 A. Pursuanl t( an Ownen Participation Agneement dated ai of , 2008 lltl e "OPA"), Pari icipanl l a s agueed to construct ti a Impnovemernls and comply witl the Colienants and Agency has a ii raad to the Clovenant Gk ris idenation with raspeat to the Site deacnit ad on Exhibit A atiaat ad hecto ("Sile"). H. A:i a condition of :such OPA, Agency has uaquinacl tie necoudation of this N am( naudum oil Agneement, and Pari icipanl has agreed to exeaiita and record this Agreement, which it a 11 nun with the land. Cl. 7t i9 Agreement is ente:ued into and neconded in acac ndanaa with Clalifc rnnia Health and Sailety Code Saation 13137 and 33439 and the Raclevelopment Plan. N (IMI,-AHERHHORE, 7HIE1 AGENCY AND PAFITICIIHAINT AGRHH AS F0II1I0WI9 : 1. Inewipoiiation oil OHA Hrovisions. Zhe llnoviiiens oil the OPA ane hereby incoglorated ty neilejienca as thougi sel fc rlh in fiill. The inaltision c Ithe folk whig pnovisiom shall not limit the incorEloratic n oli the OPA, but is meuely Ion convenience. Clapillalized terry s not defined AMUIUHNv HN'll NO. 5-1 DOCIOC/ I2921941, f t1ro3 23S 9-001d I anoin sl all I ave the meanings dafinad in the OPA. Paragrapls 1 thrat gl 11 haneal include sarna of the s alienl pnovis ions of -Ihe OPA, 2. Brohililion Against Change in Ovanniship, Management and ConNol of 1Harticipanl. The qualifiaE Bans and identities all the Participant, including Hnic Altrnin, the M anaging Memben a fl Pa rl icipant, ane oil I a rticula n concerns to -11 e A g c ncy. It is beca us a M -11 ose qct alificationi and idon-litias ilhal iIhe Agena�l I as eritaned into this A € neamanl witl it a Participant. No iialunlary or involuntary ,ucce:sor in intoned oil -Ihe Participant ,il k 11 aaquine atill inlenest in the Ii1a a n the Prajacl nor any rights an powoni under this Agnaememl excapl k s expnes sly sat Ilor h hens in. Ilming the Openaling Paniod, it a Par icipant sl all not assil n on Inansflen, a 11 of an,I part M this Algnearnanl on the Site, or any portionlls) tl oneal, or intarasl js) therein, an any nigh-l(s) I arae rider without ti a prior wiiltcn ,11 roval of the Agency's Hxeautiva Dineclon. Assignmenls for financing purlllases it all be appraiiad by the Agency's Hxeautiva Dinacton in aacondance with thi;i Sao lion III and witl it a mquinement9 M Seation 409 a it this Agneamant. Pnior ilo any assignment which rapt ines Algcncy's Exeautina Dineclon appralial t oras ndcr being aansidei ed lot approval, tl c Participant 0 Ell be nequiied -lo cls li`iar to the Agency's Hxeautiva Director the form of a praposed written assignment and assumption agreement in vitt iah d a assignee viould a?ilinessly agree to assume all nights and obligailions of the Par icipant under this Algracmcnt which anise after the eilfactive date of 1t c assignment, and in which assignment and assumption agncemenl the assignee would agtea 1lo assume on Partiaipanl would a)iprossly rarnk in responsible lon all penformanae of -Ihe Par icipaw which arose pi for to tie effac 161c date a i3 tie assignraan1. `Dhe assignmen-1 and assumption agneamcnt shall be in a forrn raasonal ly satisfactoryto tl a Agency's legal eaunsel and Agency's legal eounsel shall have approved the assignment and assumption al neamanl Union la its execution and prion la it beaarning affective. No latan than the da la tl q assignment becomes oflfeclive, Participat t and II a assignee it a 11 deliver to 'll a AS a ilully executed eapy oil -$e m3ignmcrrl and assumption agrearncnl. T amithslanding d a flonegoing, neillhen It a lander al I novel by the Agency purist ant to 1Ihis Agneement non its sucaossans an assigns shall be raglt ined to execute and deliver an assignment and assumption t groemeW and tl a nil I is of ;it al lander and i s suocessons and assigns. Nolwill standing any other pra`iision of this A grearnenl la tl o oonlrary, Agency apps a `ia 1 ail an assignment of this Agi eement or la Site on any into nest tl o nein shall not be nequ ins d in connection with any of the fallowing peach a "Permitted ' lnansiled'; : Qi; Any lransilens in which 1Ihe Partiaipanl netains a minimum of fifl)l one percent (111/() of the ovincrship and ne'lains aarnplata mk nagemeni and dacision making contnol; (ii; Iransfans resulting ihwrn tie death an mental an physical incap,,aily of an indNich al; (iii: 11he granting allemporaryon perrrianent easements an perrriils to faaililale the development of the Projeat; jiv,, 'the leash g oil sep',rate spaces in the building in tie normal course oil business punsu, n I to leases to oomrnance no eanlien than Particip,, nt's aomple lian allhe building cone and shell , s avidanced 1 y the issuance oil tl a Carl Measle o fl ]Mina I inspection - Building Cone and Shell; A1YIA (IHM HN11 NO. 5-1 D(KI 9 OC! 129 219 4i i 1 A/07 27 9 9-0 08 5 iIv) 'Ihiiansllens on assignments in ilrusil for the benefit of a spouse, al ildren, on gliandchildnen; i1vi) P sale of the Site at foreclosure i1or a (iatilleyance lheneof in lieu A a foraclosuue, pursuant to a fa reala supe Iheneof t )I a lenders appna `lad by tl a Agency in aocondance with 1 his p g neo me nt; 3. Indemnity. Par iaipant agrees to and heneby does indemnity, delend and hold Agency and the City and (heir eespective officeus, employees and agenls harmless loom and against arnl claim, action, quit, praaaeding, loss, cosi, damage, liatility, deficiency, fine, penalily, punilive damage, or expanse tlincluding, without Iimilalion, attorna:ls' leas; (hanoinafilen collectively the "Cllaims";, neiulting from, arising oul of, on based upon (i, i1he pnesence, ralema, use, generation, dischamgc, storage, on diipasal of any Haaandous Materials on, under, in, or atoul, on the lnansportalion A any such materials to on fiiam, the Site in violation of applical to Hn`iinonmental Ilaw, whena`1ar dkoovenad an ilii) the violation, or alleged violation, of anil statute, ondinance, orden, nule, negulwion, permit, judgmani, on license relating 10 tl a use, I anenation, release, dischange, storage, disposal, antnansparlalion of Hazandous Malenials on, un(lan, in, on about, tc an thorn, the Site vihenevem disaailarad. 7t is indemnity shall include, viiihout limitalion, any Claims ibi personal injury including sickness, disease or dealt, tangible on intangit to pnoparly damage, compensation on lost wages, t usiness income, profits an oil er eaanamia loss, damage to iIhe natural nesaunce on the grminonmenl, nuisance, pollution, contamination, leak, spill, release, or others adverse efleci on the onvinonment. 'phis indemnity shall not include any Claim dintioly nesulling from, arising out al, or I a sed upon the nai lige n t s c l Nitia s of Agency, C lity, o n any oll thein a lficens, employees, on agents. 4. Clammencement and Clampleilion of Clons-lnuation. The Participant hene111 covenants and agnee;l to promptly t agin and theneaflen diligently pnocaed to completion the constmoion althe Impronamants and the development olltle Site in aonlorrrianca viiih the Sch4(It114 a l Penfa rmane a. 5. Bodily Injury and Hnopert3l Damage Insunance. 71he Par icipanl shall proteat, dafend, iridamnily, assume all nesponsit ility for and fold harmless the Agenay and tl a Clity and their elective and appointive t aands, Akers, boards, agents and employaw, from any and all Claims, mihich may be caused by any a 1 1he Participant's activities unden This Agreement, rogaiudless of whether such activities ori parlormance thereof I a b`I the Par iaipant an anyone directly or indirectly employed or coniivacted with t the Paricipanl and,negardless of NAitalher such damage shall aacnia or be d iscova ned be fone on after it error ina l is n of this Agnea ma n t. Fnom the data of the C to n si n is tion Finanairig Chasing Dale thnough tic (late the Aganay issues the Mom oil Clonstnuction Clovenants fan tthe Impnovements punsuant to Seation 412 herein, i1he Participant shall: (Ii; ottain and mairitairi a policy of commercial gemnal liability insunanca, whish shall include t lanket aontnaotual eallaraga, and shall have limits of not less it an 11wo Million Dollars 11$2,000,0001 pen ocaunenca, and A a policy 11omi with a I enenal a1 I negate limill is used or provided the aggregate limit shall be not less Than tviiae the pen oacurnenae limit, whish policy+Is; shall pnotect the Participant, the Clity, and I I a Agency Jiom claims far ;lush damages, and which policy sha 11 be issued by an "A A I" an betlen ratod insunanca aarnien as rated ty P.M. Best Clompany, and shall provide all coverages on an oacurnenaa basis; and (Iiij at U in and maintain on o a use to be obtained and maintained I .l the gena nal contnacton general liability insuuance. The Participant shall funnish an endorsementtls; of insunanca countersigned t I an authonized agent oil the in,iunanaa carrier on a 11orrri of the insuuance caniien evidencing and/lon ATTP CIHM HN11 NO. 5-3 D(1( 90C/12921S4ii1(1/072159-(0J6 cfkating 1he requircmenls henein and/on 'Ile changes 'lo tta Participant's policy to effacil sual confo rmi•l y and s a tting forth t ha gena nal pros i i s is n s ail Ile ins t na n a e coverage and an endorse ma nt tl at shall name II e Ci -1y and tl a Agency and ilhein naspeclive offiaors, bowds, agents, and amplayaes as additional insuiicds ( adcr tl a policy wish respecl to this Projeot and this Agreemernl with the Agency. VQ endorsement by Ihe insunaneo carrian OM ll contain a slalatnent a ll obligation on 11c par all the issuing ag and an canior to not fy 1he Clity and the Agency all any maileiiial na(h c 4 n, cancellation, oii nan-renew, I of Ile coverage al leas -1 tt irty 30 days in adlr nce of the ailfeclive dale cit any sual malerial change, or non-renevia1. Noi less It z n fif sen 11) days prior to 'Ihe expiry Mian (k le of, ny poliay o f ins(nariac requined I it this Pz n� gnj jI 1, Pari icipanl at , Il cause to be delivered la Agency � binden am cer ificate of ins(nanae viilh rospeat W o� ch nenowal on new policy, bearing nat,tion evidenaing pailmant of the ptuemium tf orefor, or olheii proof all payment raasonu t ly saiisilaotoryl ,Io tt a Agency. In each instance of tl a provision oil insurance, aertificd d(plioa-le copies a it tl a policy{ s; oii iienew� l polio y(s; , as applicable, stall be da 1 iva ne d to 1he plg c ncy's Hxea (tive Dinaa la n within shirty l30 (k ys oilIhe dale oil sual pgliay(s . The N rticipant shall also furnish or cause to be ilurriished l0 1he Agency evidence sal isilaotoDi t o the Agena y that ii and any a a n l naota n wil h whom i l t z s a or lma to d ilotn 11c peuformanca a ilwonk on 'Ihe Sila on olharwha pt rsuanl 'lo Itis Agneemenl c� vies viankens' compensalion insurance s required by law. The Agenail hereby delegates 'la the Agency's Hxea(tive Director, with and lhuai g l consultalion and advice fnom'Ihe Agency's and Clity's legal counsel znd nick man, ger, 1he aulhority la consider, and approve or disapprove, written request(js) from the Parlicipanl conaarming any pnoposed modificallion(s 10 1he indemnifiatIia n andilor insunanaa requiramen'Is of 1t is AIgnearnanl. Provided, lawaven, by such dalagalian -Ihe Aganey expnessly neservas to itself and the Agenall's Hxeautilia 11ineaton the sale trid zbsolule discretion to approve or disappliove any sigh madificationlls; ragt riled by she Pt rtiaip, nt. Unless and until t ny such requested modifioalion(s is appra`ied in writing by 1he Agency's Hxeculive Diiieclor, in his/her sola and absolulc disciielion, the P, rticipant remains abligatad I eraundor and shall comply and continue to comply wilh'Ihe indemnily and insurance nequiremenls set forth in This Agreemant. d. CloliannrnGntal Requinemanls. Par iciparnl shall cartel a(t the design znd consliiuclion and operalion of the lmpiiovemenls in oonformily witt z 11 Claiiarnment, I l4equiremews. 7. Taxe;i, Ass es s ma nts, Encumbuanaes and Liens. 7t a Par io ill a n sl z I I pay veil c n due all real estaile laxas and assessmcrrls on the 9ile. Pnior la first Sala of the Project by tie P, rticipant, ilhe P� rticipant sh, 11 noiI p 1� ce or al low iIo to pk aed an the Site am any part 1heiieof, , ny marlgage, lruisl deed, encumbiianco oii lion olher Than zs expiiessly allowed t y this Agreemant. Tie Pzrticipant shall remove on hada removed any levy or atlachmenl made on the Site am 'ny par 1 ereof, or assure tie iz 1sfaclion lhareoll will in a raz sonabla lime til in iiy event priar la a s� to 11 crcunder. t athing herein contained shall be deeme(I to prohibit the Participant fnom conleMing Ile validity or amount of aull lax assessment, oncumbr� nce or lien, nor 10 limil 'Ihe ramodies alr ilz bla Io la P�rtioip� nt in uespccl llhere'lo. 8. Uses. The Partin ipa n I o a i is narrl s and agrees you i I self, its s ucca s sons, it s assigns, and ever I suoaassor in in'leresl to Ihe Site an any pari lheucof, that afien 1t e Agency's issuanoo al Relcasa of Clonslruclion Covenants pursuanl 10 this Agreemant, the P4 rlicipant shall mz in1z in, use, nd opeuzle Ito Site fan no alter use lhan as z aamrnanahl, offlaa znd netail ficililll with approxirnz Ialy 8,000 square feel of gross leasable building ansa devo-Ied Io 11 a u.es specified or pormitled herein, as A`DTACIF MHNT 1` Cl, 9-4 Dace aC 1. 9119 4,116/(12 29 9-9 (s d r4g1 fired in this Agrit ment in oanlorrnit,I with the lin itations of the HntitIQments to a period of twenty (14) yearn 11nom ti 4 (late of the issuat oe of tha lie Iease of Construction Covenants Ili rsuant to this Agreement jar the data ti e Agency was naquin (Ito issue the lie leala of Can Eiruiois n Covenants, whichever aacuns filsl. No usa(ji) other than tiase spaaified henein shall b� penTiittod without the prion written appnoval oil the Agency (viliat appnoval the Agency may grant or deny in its as la discnetion . 9. apenating Covenand. For a term commend ing r llo n t1( disbunsama n Date and ending upon t1( twenties h annivei saryl 1 heneof ("Clpenai ing Po riod"),1 he Owt o r ha neby ac ve nam s a t (I agrees to devote the � ntiie buildii g on a continuous basis to rhe operatiat of retail stoics, comparable, as of the data heneof, to the Mission Pnom(nade lona ed at AS-'] Orega Highway, 9 a n Juan C apistnano, C a lilorr is . Hxcept with the pnion wi itte n conso tit of th( Agency 40i eaa h it srance, wi ia1 consent may be gnanled of wi hheld in ti a Agency's sola and ab:ialute discna ian, ti a fa ilune of i he Clwnen to cause the Pno je ci to be openated as pra iiida(I hanein fan thirty (:'0,' on more conseau iii( days shall, at the Agency's option, ear 91i ita a Delaull hereunden; pnovidad, havieven, ti a the Ovinar ifall not be in default al this Paragraph 9 during any period that any of th( Clvtner's tenants ane is pi evented from openaling the Puojeot due to j) nequired an neaessarl renovation of the lmpnovements (provided chat the paniod (tuning which tha Pza j4cr is not opera ed as a nesult oil ti e nandnation of 1he lmpnovements shall in no event excead ninety (90; da),Is , on (ii) events of fano n a je uro as set forth in Section 60: heneoil. 71he Operating P(riod it all be extando d Ion each day of alosune permitted I er4under. 10. 78enani Reslrialions. Pa rl icipant sha 11 use the total gnois leasa I la bui Iding a ra a a n t1 a Site in ti o following manners; pnovided, however, hal tt a A li ency's Hb1ecu ive Dinea on in his or tar sole and atsolule disanetion may approve minae deviations from 1he follaviir g 4anditions w1 iat a ra neques e d by r he Pa r1 icipant in wni ing at d pnovided Jur I e r that Pa r1 icipant complie s wi h a r,I a nd all applicable C ity nequir emem s in a a fit a cr ion wi h such daniatia r : a Tha second floo■ leasable building anaa may be (sed far affice, personal or I t sines ser%iice facilities, an o her non retail uses as specified it Section 9-3.303 of 1he Mut iaipaI Code for the dour isi Commencial II"TC" distria inaIt din M, I r t not Iimi ed to he fa flowing: li; A aaoun an- s, attorreys, aonsullan13; Iii; Insunanaa agencies; liii; Medical offi4 a s; liv,' Enginaens, anchileats and plannens; Iii) Ae ligious, fnaternal on sa rviao a rgan is a is t s; (vi; Public facili ies; (vii; Real eitato offices; (viii: 'lira ve I a gencia s; and (ix; Full serviice laur dr)l and dr)l cleaner business. AT7IACH M El` TI NO. '1-5 DOCSOC117511911v16/4.I799-0486 iIx) Massag( th(riapy; iIxi) Small businass, % national, p (fissional schools; and i lxi i,' Finana is 1 brok( nag( a ilfices. I . Any rorm a in ing gross I( a sable building a mea not us( d for the above pugla ses shall be occupied by nelail Tenants oarlsistent.wilh Mission Promenade in terms ail quality of nl oral andise and sales volume, viith an a l j(e-1 kic a nd emphasis c n gen( nal ing la a al iievenues, and providing first quality nec( gnizad retail usells ganaraling I igh volume sales. 11. Maintenance. 71 a Participant shall maintain 11 a Improvements that ( xisil on the Site il((om time to I ini a in a ccondance wi lh the Ag is emenl to be Rleconded Alililect ing Real Pnoperl y the covenants, aandilions, maintenance obligalions and othen mvriations ail which it all remain in efleat until the expinalian oil the Redailalallrnant Plan, lhal is until July E, � 4 1 � . Issuance of a fdelease of Clonslnuction Cla 11(nanls I `l 1he Agency shall not allfecl Parl icipanl's a I ligations under this Sag liarl1441. 12. Rights of A acess. The Ag t ncy, fa n it sq 111 and fa n the City and otheii public al ancien, al thein sole nisl and expense, raserves the nigh to enlei the common areas on the Site an any par thaneal which i9 owned on aantaolled 111 the Participant, al all iieasonable times Ilon the puglase of oonslrwc'lion, reconstnuclion, maintenance, neflain or s( rvica of any publia improvamanls an Ilut lia ilaaililies loaaled on II a Site. Tl a All ency oil such olhen public agency exoncisinl such rig I 1 of enllrll shall lake all seasonal la measunes la minimize inlerifenence with the openalion of business on If e 8 ito and shall pnomptly repair and nastore any damage caused b`l such entity to Ile Sile ori the lmpiavemenils lheneon. Any such entryl shall be made only aflen noasonable notice to and consenl of the Par is iflant, and Agency if all indemnifil and hold Pan icipanl I armless from any as nils, claims, damages on Iiabililias peraining to any enuil. The Pan icipanl agrees to aoopenale with the Agenall in providing its consent and such aacess, and ackr avnlodges Il a1 the All ency mail oblainan adminislnative inspeclion war and an olhen appllopriale legal on aquilable iamedies to anlbllce ils nights punsuanl to 'lhis Section 141. This Seclion 505 shall not be deemed to dimini:11 any nights the All ency, the Cli-ly, an any olhen pul lia agencies may 1 ave wilhou I neilenenco to this Section 505. The nigh-ls oil access set flora in this 9aclian JU shall iiemain in effec-1 unlil Ila expiralian ail the R edevelopmenl Plan. 13. Nondiscidmination. Tlhe Par icipanl aavenanls by and fbn itself and aril successors in intariesl thal theme shall be no discrimination against an segregation oil any person on l soup of ponsons on account of nage, color, aneod, neligion, sex, manilal status, plysical ori mental disability an media aI condition, nalianaI origin or ancestry) in the sale, lease, sublease, tnansfer, use, aaaupancy, lenume or enjoyment of the Impnovemenls or the Silo, nom shall the Par icipanl ilsolil or any person aIaiming under on II hough it establish or permit any such practice on llnaalioes of diseriminalion on segnagation viith railanenae to the selection, location, nurnter, use oii occupancy of tenants, lassoes, sullonanls, sub[esseas or vendeas all -Ihe Impnovemenls or the Sila. Tie foregoing aollananls shall nun wi-lh 11 a land. All deeds, leases an contracts will nespecl to the Impnovemenls an the Site shall aantain on be subject to subslanlialhl tha following nondisomimination or no nsegnegalion clauses: AIT➢ACHM ENT NO. 5-6 L]CICR U/ 129219,hi l d/03219! -( M a. In deeds: "The gianlee henein cov( rlanls by and for himst Ifl os Ienself, his of hem t t irs, exec utoss, a (in inis Inatoss, a nd a swig n s, and al I peisa ns claiming under a n Ihmougt I[ am, tt al there shall be no disa niminal ion against on segnegation of, any penson on group of parsons on as a ounl of a nil I a sir Hitt d in sut division (a) on (d) of 9 t c l is n 119 99 a 11 he Government Code, as those bases ane defined in 9octiarls 12926, 1797fL1, subdivision (m; and paaiagraph ill) afl subdivision (lp; of Stclion 12999, and Secl ion 12955.2 a lta Clauarnmotit Cade, in the sale, lease, subleaso, tuansfeu, use, ocatill ancy, tenure, oil an'oymenl oil lla llnomises heuein conveyed, non shall the guanlea oil any penson claiming under or thilough him an hen, establish on permit any llnaatiao or priaatic as of disciliminaIian oil segnegat ion with noileilenc( to the soItc-lion, loaatiaii, numbeil, use on aacupancy of tenants, lessees, subtenants, sublessees, an vende(s in th( pnemisas heuein conveyed. Th( floiagoing covenants shall run will d a la nd." b. In leases: "The lesset I t rt in s a`ionanls by and fan himself on heest 19, his on hell heiils, exec uta as, adminhinalors, and assigns, and a 11 peusons a la iming under ori tt nough hirr on hell, and this lease is made and acaopltd upon and rut '(c'I to d a following conditions: "71ha1 thane stall be no discrimination against on segregation of any penson as gmoup a8 peusons, on aacounl of any basis listed in sill diiiision tla) on ltd; of Seation 12955 a fl tic Govern mens Code, as lhoso lases are defina d in Sea tions 12926, 12926.1, subdivisian (Im; and paragraph (1) of sill diiiisia n (l:[ of Seation 119 99, and Stiction 12955.2 a 11 tt a Govern menl Code, in the leas ink , subleas ink , tnansfa n ing, ust, oat LII ancy, tenure, on onjoymont of the I nomises heuein leased non shall the lessee himself os hemstlfl, or any lltrson claiming under on lhraugi him or hen, es lablish or permiit any suit pnaaliae or lima( rites oil disamiminalion an segregation wilh no flenenao to the s( le cl ion, loa atio n, number, use, oil ocaulancy, oil tonanls, lossaes, sublessots, subtenants, oil vendeas in the premises herein leased." a. In contrisets: " Tlhene shall t t no discAmina lion against oil sogn i atia n of, any person or group all peusons on account oil any basis listtd in subdivisian (la; an 11d) of 9 a ction 12955 of rte Govern menl C la da , as those bases ane da fined in Sa cl ions 139](1, 12926.1, subdivision -Im, and panagnaph ill) of sutdiiiision (p) of Saa lian 11999, and Stiction 12955.2 oil tIa Goverr ma nl (lode, in the sale, least, sublease, mansfa r, use, o a cupane y, lenuile, or a q'a yma nt of tit promises A ia1 are the sub'ecl oft( is Agraemenl, noil shall the gra nice oil any person claiming unden or lhilaugt him or hen, establish ori permit any pilaclice on ptiaatiaos of discrimination or sograiatian will ileferance la the salt c lion, location, number, usa oil occupancy of Tenants, lesse(s, subtenants, sublessees, or vandaes in the pramises hanoin oon`ioyed. The foragaing aa)ianants stall run with Ila land." '➢he covenants againsl disanimination, set forth in d is 9tclian 906 stall (anlinut in effect in pert otuity. 4. Efloat of Violailion of the 'berms and Provisions of this Agreemenil. 710 obligations and covenants aslablist ad in this Agreement, as set forth in Sections 101, 202, 403, 405, 407, 409, 101 t nough 906, inclusive (hhe "Covenants"' s1 a 11, without regard to teat ni(al classifraation and designation, be binding Toil Ito banafit and in favors aithe Agency, its sucaossors A`➢TACHMHNT 1` Cl. 9-7 ROC:I OC/ 1: 9: I9 41116/(2' 29 9-1 [ ,I (I and assigns, as llo Those aauonanls wl iat era fon ills banafil. the covenants contained in this Agra e mend shall nemain in effe c-1 fan 1 he peniods specified hei ein. 11he Agi na}l is deemed the benaficiaryl of ti a terms and I novisions oil this Algiearn anl and of ti a covenants nunning vaitl d a land, fan and in its own nights and ibn the purplose� of prol eating the inlei este all the communi-ly and otter parries, put lie on privata, in whose favor and ibn whose benefil This Agraemenl and 1he oovenanl, rwnning wilh the land have b(an pnovided. The Agraaman'I and tl a aovenanls hanein st all rain in flauan of tl a Agency, without negand 'lo vahe'Ihen tl e Agency has been, nemains on is an ownar oil aml land or inlenesl it a re in in ti o Sita or in ti a Clommunitil Dolialapment PnojacI. "➢he Agency ; I all ha`ie the night, if tl a Algneame nt on covenants era bneaa 1 e d, to exencise all righl s and remedies, and 1 a maintain any a cI is ns a r suits al law an in equit}l on othan propon praaeedings 10 anflonce 1he cueing of such t roaches to mihieh it or any o1hen t o nefra Tania s of 1l i s Agneemenl and l a a ue nanl s mal 11 e enl i I la d. IN WITNHSS MIHHREOH, 1he Agency and Pa rtia ipa nt have i igno cl 1 his Agneemenl as of ti a dale fruit set forth at aua. ATTHS11: Agency Secnelaryl APPROVED AIS 7C1 FORM: 9 tnadl ing Yoco a Clan l son & Ra utl , Agency Special Claunsel AGHNCY: SAN JUAIN CAHISTRANO COMMilNITU RHDEVHLOHMDNT AGDNCY, a public body aarploiale and paIilic Clhairms n AARMCIPAN7: 16755 VDRDUGO LACI, a Clalifornia limiled liabilily aornpany 11 s: AlITIACIH MHNT T C1. 9-8 DGC SC1C/ 17 9111411 16/C 21219 -OC 8(1 ATIAICHMENIM NO.6 PIRIE NIAIIHI NG WAGE AND PIUHIIIC WORKS PJ Q11 REMENTS 1. Parlicipant'i Raquiramanlls: (l; Obtain tit pvevailing wage vale from th( Direclor of Iriduslvial Re lali( ris in a a covda nee with Ila bor Clode Sect ions 1111 a nd 1773. (7; Specify tit appnopviale prevailing wage nat(s, in aacor(ance wilh IJabov Code Seations 1773.2 and 1777.5. 11A The pos ling nequivement is a ppliaable for ( ach job site. HXCHPTIC1N: If move thsri one wort side (xisils on anal pvojecil, then 1Ihe applicable hales may be post(d al a single location wl ial is readily available to all wonkens. 1113; til a wage rale lforn a craft, classifrcalion on Type of wonken is hat publial ( d in the Ilireaton's genesial pre vailing viage del errninall ions, a nequesl fan a special delerrninallion should be marl( by ilhe awarding body to Chief, Ilivisian oil Labor 9Uti: rias and Research, P.CI. Ha)i 420603, San Fnancisao, CIA 94142, al leas'I 43 days prior I( ti ( projaa I bid advertisement dale. 0; Notify II a 13i`iision a1 Apprenilices hig Standands, E spar rnant oil Indusilnial Aelailions. Se( IJabon Code Sea lion 1113.3 . (4; Infarm prime conlnactons, to II a Oite nt lleasible, al ne levanl public work nequinemenils: NO7H: Rlequinemenil inilorrmalion ma)I ba disseminaled at a pre acc(gtance of bid confene nee on in a call fon I id,, or a l an awand of bid aonf( rance. Th( public via nkv r(quinement: ant: IIA II e appr(pniate numb( n of appne nticei ars an th( job iile, as ,et forh in Lai ( a Clado Section 1777.3. 1113; work( n; ' compeni a lia n cov( saga, as s e l forth in La ba r Code 9 acil ions 1860 and Iatll. 11C; teep acaunate neaonds oll'lle want p( nform(d an public woos pnoiects, asset Jbr I in Ilabon Code Section 1812. 1113inspection ofgayra11 necondi punuanl to Labor Code Seclion 1776, and as set Jbr I in Seation 16400 Rte; of 1litle 8 of the California Clode of Rlegulations. (131 and others requirement: im p a,, ed by law. (1; M ithhold monies. Sea Labon (lod( S(cl is n 1731. A T71ACHN ET 11 NO. 6-1 DaC� C iC/ l 1941 Eu(i' a , 99 -o(l F6 (d) Hnsure that public wonks projccls are noel split on sapanatocl into smaller wort orders or plio.jac�ls 1blu tl a purpo.e of evading the applicable pnoviiian: of Labon Coda Section 1771. (1) Den 3l the rig l t to 1 id on public vow nk contracl s lo con l ra cl ors a n subs a ntim to n: who ha vc been debarra d fnom bidding on public wonks contracts, a: set forth in Laba n Clode Seation 1777.7. (8) Tat permit wonka n an public wanks to wank mora tl a n eight l a uns a day or z1 a hours in any one calandan weak, unless compensated at not less than linia and a halllas set 1br I in Raton Clode Section 1815. ENCIEPIICF1 : If the prevailing wage dotarmination requiros a higher nate all pay for a `iartime woiuk than is nequired under Labor Code Section 1815, tl an that higher over imo nate must be paid, as specified in sub: ecl ion 162001a)(13; (F; of llille 8 of tf a Clalifornia Clode of Megulations. i19) Tat lake or nec0 is a n J l porion oil I t c vio nko c ' viages on a ccept a I c in corms a tic n vaith a gublia wonks projea 1, as : et fo rih in Hat on Cloc a Sections 1778 and 1119. X110) Comply with tt ase raquinamonts as specified in Labor Clode Sections 1776(8 , 1777.1, 1310, 18 17 ,and 13(10. ll. Con lnacila n and Subcontna atop Requinem(nis. 7t a contractor a nd su ba a ntractors shall: (1) Pail not les: than the prevailing wage to all workers, as defined in So(tion 16000 of Title 8 of Ile California Clode of Regulations, and a:i sel forth in Ilabor Clode Sections 1111 and 1774; 112 Comply vaith the pra `iis ions of Ilabor Clode Suctions 1773.1, 1775, and 1777.5 regarding public works,jobsilas; 113 Pnovide workers' aompensation i onanaga as set forth in Habor Clode Section 1861; 114 Comply with Labon Clode Ila c I io ri s 1778 and 1779 nag arc ling ra ceiving a por ion of wages or acceptanac of a flea; (5; Maintain and make available for inspection payroll aaaonds, as sot forth in IJaboli Code Seation 1776; (16: Pay works ns a vo rtime pay, as sat forth in Illa t on Cla de : e c do n 13 11 on as provided in the aollactiva bangaining agreement adapted by tle Ilineoton all Induslnial Relations a: ic-1 forth in Section 16200 (a) (13; ofl7litle 8 of the Clalifarnia (lode of Megulations; (17; Comply witt Section 16101 ail Title 8 of the Califorruia (lode ail Regulations ■egavding discoiniina lion; (18; Bo sut fact to provisions ollLabon Coda Section 1777.7 which specifies the penalties imposed on a conlraclor wt a Nullfull3l $ails la comply wits gnovisions of Sea lian 1777.1; F HTA CHM HN'p NO. 6-1 DOW 0012121 S, hi W/0123 S 9403 6 and 11q) Compill with 1hoalc ne c uinements as specified in Ilaboi Code Sections 181fl and 1813; (110) Complil with othi a mequisamernls impoicd by law. ATMA( H M F NT NO. 6-3 DCICSCIC/I: 9.11 4v 16/02: -00&I ATIA (IH1V ENI N U. 7 F ROMISSORY NOTE QSeaurc d by 14 ed o1 Inus1l _, 2009 Clalillornia FOR VAIJUH RECHIV HD, tt a undo t: igrn a d 26755 'v ERLIUGO, IJDC, a (la Iillorniia Iimiiled liabilitil company ("Parlicipanl"), laving its principal place all tusinems at 26799 Vatdugo S1ieel, Suite 200, San Juan Capistrano, California 92675, piomhei 1a pay to the ardat of SAN JUAN CA IPISTRAINO CIOMN UNITY REDHN EIIOPMHNT AGHNCY, a public t a dh 1, a a rpoi axle and politic Q"Agency"), al 32400 Pasaa A d larrlo, Sari Juan Capis lrano, CIA 92675, or at such o1le place a: the holder of II is Note Itoni lima la linia may dasignale in wining, in acaotdamc with the folla viing: 1. Recitals. Paricipanil and Agency have enleied inla that certain Clwnei Parlicipalion Agi eemenl data d , 7 009 (111he "CIPA") pui sua n I to vtl is l the Agency vtill disburse to Partiaipan the Claticnaw Doan in'Itc principal amount of Nine Hundied FiN Thau:and Dollais (1$950,000; 1"Principal Almaunt") and the Psrlicipanl is iecluirad -lo con.,Inuat tlerean the Improvement: and ilulfll all the Clovenamis all as mole Jully desaribed in ti CIPA. All aanitaliaed tennis noel defined henein sha 11 hs iic II c meaning :ia l for h in it c OPA. 7. Definitions: "Agency Participation Nymenl" means, subject -lo the provisions of Seclion 8 below, fifty] peicenl 1150%1 limes the 1` o Opeiwing Inaarne in excess of-lhe Partiaipanl PtieJlerrad Helurri. "Agency Refrnanca Shai e" mean:, fifty per cent oll It a Ilis lribulabla Rcfrnanae Pra a c eds. "Algency 9 a lc s SI a rc" ma a ns, subjeat 1lo the provision: of Sea lion: 1 and 4 be lovt, Iwenly- foic peraenl (7;1°/a; of the Llhii it uta I la 9 a las Pi oceecls. "Iliraa I Closls" rncans lhoac aonsliuoion cost: paid directly to conlliacloiis and/or �upplieiis in connection viilh the aans,lrruatia n a ll the Improliaraanls. "D isiAbulat la Refinance Pi oceecls" ii dafin4d in Sea lion 1.1 balovt. "Ilislributat la Lies Praaeeds" is dafined in Seations 1.1 and 3.4 below, as applicable. "Clna 11d Opening M le" rnaans II a publicly a nnounced (tale That II a Pra jac-1 is open to 1t e public fan bus inass. "Clross Income" means all gross income Jl am the Piiojecl including, witl aut limi1allion, rants, common ariea mainlenanae changes and olheii naimbuniamenls from the tamnls. "Ne'I Opeiialing Inaarne" means 1t a agguegale annus I Clross Income less Opatnating H)ipensas. A'DTA I Cl H MHNI NO. 7-1 Docs aCi l 2C 1 � 4/1111/01 � 2� M O fI "Net Re finam a Pnocac ds" me a ns gnoss ra finana a pna a Beds minus Re finance Closta. "Operating ExpE nses" means annual actual, "na a sonabla and customar)l" o a s1 s, Jees and exp(nses of netail developments diractly inar ned by the Participant commencing upon commemamcni of opanation of If Pnoject and a-llribulablo to the opanation, mainlenanae, and management oil the Improvements including, wilhou l limital ion, re series ilor oapi Ia I e xpens( s, painting, cleaning, mainienan(ie costa, nepains and alterations, landscaping, utiliiies, rubbish removal, sower changes, ncal and personal pnopert) taxes and assessmenils, insurance Hnamiums and deductibles, secunit� l services, a dvc rthin g, promotion and Il ublia it 1, office, : ani-Ioria 1, cleaning and building supplies, the oxponsed por icn oUenanl impnaiicment allowances, lenaml improvements and leasing commissions, onsita management, and a m a nagemenl ilea equal to three Ileraeml I13%) oil Gross Inc oma ; provided, howevan, that all payment s to pa rl ies ra la tc d to on affiliated with Pan icipant sl a II no exceed marl e-1 rales. Operating Hxpenses stall not ins ludo principal and inlanom on debt obligations or neturn of on on equi-ly or non-cash expenses, including wi-Ihoul limitation, depnecialion ohen than reasanable nesermoi for oapilal expendilunes &cluding, wilhoul limitation, rooil replacement), and for tarianl allowances and icnaml improvamant aams or leasing commissions, to the extent thal they ane c a pita Iiaed. "Participant Capital Raturni" means the value of the Par is ipa nI'a Pneferre (I Re Turn al nefrnanaing, as aamputa(I in Seation 1.2(la) on a l sale as computed in Section 1.1 Ile). "Participant Costs" means the lo1al actual costs incurred by tl e Participant, in aaquiring the Sita and planning, designing, anginaaring, financing, constnucting, leasing and developing of the Inn pnoveme nts, in ace a ndan a e with the plans and spa e ifrc a 1 ions to be acts (I upon by the Aga nay, a s pnovidQd in the CIPA. Me Participant Closls shall include, wilhouI limitation, the following: all costs on iia a s paid to all coni nacl ons, oasts oil site pnepanat i on; the cost oil c a n s i ria 1 i on oil all of the Irnpnovementa, including nequined onsita and alfsile impnovemants, anchilectunal, anginaering and design flees, rellnoduction costs, development permit inspection fees aharged ly any Hr blic agency, general contnaclon fee, perforrrianco an completion bond premiurns, constnuclion loan fees and points, mortgage I rokaraga ileus, itis inar range pramit ms and endonsement costs, surrey costs, document aryl tnans fa r taxes, tenant improvements, tenant improve ma n t alIowa noes, 1hind part) leasing commissions, insunance prorniums, interest payments aaarued in connection with the constnuclion kan(s) through 1ho data of issuanoc of Its helease ail Constnualion Covenants, comilting, insunanae consultants and pnaJassional leas ilinaluding without limitation legal, acaai rating, environmental and finanaial aowulting lees paid to t1 ind paries with rasped to negotiating all the OPP, leasing, pro -opening manketing aosts in connection with the grand opening and gnand opening costs, avorney facs and cods, and exper witness has and aasts, and athar cosis oil litigation and appeal, ill any, incunra(I in connection wilh litigation aga ins -I ti c P gancy on Pan icipant claiming that ilhe Clity an(Illon Agency failed to comply with CHQA on ott or land use requirements and any other actual third Harty aasls, not included aboiia, Jon planning, designing, financing, constnucl ing, and del to to H ing the Impnovemernl s wl is t t ave not been paid bi 1 the CI it,1 a nd. to r Agency, lenanis or ott or parties and whiah ane approved ly the Aganay in its neasonable discnelion. In addition to the ilonegoing, the Parlicipanl shall be antitlod to Partiaillanl's ilees and overt sad equal to: three Heraent (13%) of Ilinect Cos l<.. Fon 11r dioses of ca kulaling the "Par icipant Pneilemied 12eilurru", "Pariaipaml Clasis" will be neduced by (J' costs incur ad by Participant bull neimbunsed by tananl ilii; Net Opanating Income in an amount thal is equal to and not in enoess of aanstnuation loan interest ihat aacnies I etween ti a date of Participant's finst naceipl oil venial inaarna Ilexcluding any nernlal deposits and iemiinating an tta dale all issuanoa of if Release al Clonsinuction Covenant and +liii) all Covenant Clonsidenation Payments. A11TP CIHMBN71 NO. 7-7 noc9acnzs,19411141/0E 99403e "Participant Prtileried Meturri" means anntu,l cumulative and eampoundtd neurn bait on seven percent 11711/0 limes We Participant (lo sils. "Refinance Costs" means all third pary costs of nefinancing including, without limitation, aaermd but unp-,id intoned, prt payment penalties, yit Id rnaintt nance pa31rt1ents, bank fees and points, nate lock fees, 1 x akage fees, I t dge fees, premiums ilor letters of anedil, guananty payment pnemiums, lend(n due dilig o nce fees and ac nils, mortgage bra kers E e fats, :I i l k in aura nce fees, a scnow costs, 14as and pnonwions, legal flees, and other similar costs of nefinanco. "Thind Party Clo sts of 9 la" means all Ihind pa rty ea sts of sale oil li e Site, Pnojecl or an31 part lheneof and/or Rental Housing Sales Panoel including, vaithout limitE lion, pnepa31nent penallies, yield mainlenanae payments, subdivision and/cin lot line ad'ustment costs, title insunanee foes, esanow ass -is, fees and prorations, legal fees, tnansthn taxes and other similan costs. Payment. In lieu of a stated intanest nale and/on principal nap-,yment, subject to the pnovisions of Section 7 below, P,, rticipant shall pay to Agency the A ganey Par icipailion Payment 11ran Nat Openaling Inoame, Refinance Pnocaads and Sales Praaeeds as dosanibed below and in the a�iarnple aw abed hereto as HxI ibit A and incoUlonatad I grain by neferance. In the ease of payments ilrani Net Opanating Income, such pa)1rnant9 shall be nada within sixty (160; days of the and otl Paricipant's fiscal year. Payments due from nafnanae pnoceads or sale shall be paid dinaallil from escrow al closing oll such sale a n nefinE ncing. 3.1 N ynants fnom Net Clperating Income. In any yean in veil iot the Net Up( nating Income exceeds an amount equal ib 1I a applicable Par icipant Preferred HeWrm, including aryl accrued but unpaid P,, rlicipant Pnofarred Return and the Paricipanl Praillorsed Ratum fan the then aursenl yean,1Ihe Par ioiganl shall pay the A gency Par iaip-tian Pailmant. Subject to the pnovisions o8 Seation 4 below, pollowing a rafinanaing doscnibed in Seation 3.2 below, II e A gency sha 11 continue to be ontitl4d to necail a tt e Agency Par icipalion Paymenil from Net Upt nating Income. ..2 Payments of A anay Refinance Pnoeaeds Shane. In the event oil a refinancing, the Agency stall be paid the Agency Refinance 9lara based on tie "Distributable refinance Preeeeds", calatilatod as hollows: Subtract ilranl Not Aefinanae Pnocaads the gnaailen ah ija; Prrticipant Capital Raltim, which is an arnaunt equal to ttt Paricipanl Pnaileried Aelurni, oalculaled, as oil tI dkte Athe closing, of the refinancing divided 131 1h new nefinancing tltbt aanslant (minimum Ennual debt service divided 131 the rnvi morgage amount] plus any accrued and unpaid Paricipanl Prathnied Returri, or Ijbl Paricipanl Costs plus any accrued and unpaid Partiaipant Pneferrad Melurn accnued to If a date ofth� nefinancing, on (c) Principal pay off amount of debt being rapaid, ipany, plus any accrued ai d unp,, id Paricipanl Preferred Raturn. 7a either a) an b} or c; may be added ai 31 praaeeds to be used for capital axnendilunas to be incurred within II a 1br i coming thir y -six (136 months, and to t1 a a)itt nt If at n a n it s ane not expended within such peniod, sua h excess s hall be a onsidened Distributable Aefinance Pnoceeds ai d tit Par iaipanl shall pnomplly Iheneaflen pay to If a Agency tit Agenell uc Aefinance 91are atlnibut-,ble to sh excess. Hxamples of the application op the lbnegoing ane sort hor h on Exhibit "A" -, tta shed hereto. Sale. In the event of a sale all the Side and)lon Puoj act, the Par icipant shall pall to the Agency, the Age nay galas Shane based on Distnibutable Sales Pnocaadg, calculated as Jollows: ATBACIf MHNT r Cl. 7-3 DOCSOC11�91194v16/02221S-0086 Ile Pail icipant a l Ell da duo 11nom d a g moss sa las p:ila aeeds : [A] 311hird Pall y Colts of Sale; [H] any a a cnued and unpaid Participant's Pra llo n ed Mourn; i; [CI] it he g nea to r of (i) Ihe Paricipanl's (lapilal Aahlrn, which is an amountl equal to the Partiaipanl's Preferred Aalurn, calaulaled, as of the dale of closing, based on Paricipant Closts al closing; , di)lided by the buyen's (lapitliwlian .Rata, an (ii) Participant Clans a1 closing; and [D] an amount un la Ile Principal Amount accriuing simple intanesl al the nate of two pencont 12%,' pen annum franl the date heneof to the dale of pa,lrnant less any Agenay Pariaipalion Pailrnarit and/lot Agency Rafinaruc Shane previously necaivad . 3.4 Sala ail Dass Than 100°/a of Parlicipani Ownanship Inlenests. In the evanl that lhene h a change in the ovanership in Ihe kenasts of aapilal, profits, lossas and cash flavri of Par is ipanl (olhen than a Permlittad Iransfen), Ihe Agenall may deem sue 1 a lnansaa ian a "sale" for purl oso s of Sao ian LL 4. Cas;Ia lion all Agenay liartia ipation Amounls. 4.1 filacepttanc a of Agancy Sales Shane, tlpa n the t iansfan lot hen l an a Perniftlad 'lira n s ft r) a fl 19 d `/� a fl the Partia in a n I's owner!i t ip in I a re s1 in a 11 of -I he S i-1 e a ri d/a n Project, i it the Aganay aac apls the Agency Sales Shama, Than the Agency Parlicipalion Payments, Agenay Sales Shane and Agency Refinance Shane lhiom Il c portion sold shall themeafilen Iemnlinate. 4.2. Payaflf of Pnomissary Note. Notwithstanding anything henein 10 the contrary, on on t afane June 30, 203`_l Participant shall pay 1a AIgcncy an amount equal to 1he Prinaigal AIrnatin l manning simgla intones -I al he ra c of two panacn (2(/o per arinturn llnom d a dale hereof la the dale of paymo n t less Agency Parti4 ipa Iia n Pae lmo ri t and/on Ag c ncy Ro finana o 9 ha rla pna ni ous ly received. In 11 a event, aftan the exercise of rcasonat la diligence to oblain Cons motion Finanairig, Par iaipani is unable a oblain adaguale Clonstn;icling Fitiancing floe to conslmuclion and aomplalion of the Pro jea 1, Par iaipanl shall nelurri the full amount a fl any Eli 9buns emants Par iaipaW mail have necaivad ilor mi the Agena l l and no it hen par d s t all l a `le any flur t er obl igal ion under this Agnea rn a n l and this Algracmem shall immediately baaome null and void. Tho obligations of this garagnaph stall ba secuned by a deed of trt st which will be reconva`le d upon c i 11 c r -Ihe (i; necondall ion oil the Cons Irua tion Fina ri a ing on the rapaymernl oil tho Disbursements pnevioushl nada by Agena`l. `_I. Nat Ope mating Income REI pa r1. On a n beilone sixty dfl) days flollowing he expire I is n of Ihe Participant's fiscal year during Ito term of Il is Note, he Partiaipar shall annually pra)iida tha Agency a Nal Opera ingl Inaoma report floe the Pnojecl, in a floral mamanably prescnibed by tha Ageriay, veil iol stall doscnibe in detail Ile Nel Clpera ing Income and all distnibulions An'Iha1 `laar and a slalamew and aalculalions selling ilorl 1he amounts, if any, pa,labla to the Agency. The Paricipanl shall also submi'I 1e the Agency, annual financial calements Ilnepanad and gnasenled faith in aacon(lance vaith the provisions of this Tata. Such financial slalemenls shall ba pnapaned in a a Gorda nce will generally accepted as o un ting pri ne ipia s and shall be audited by on indepa n da n I 4crtifred public accounting firm and shall to acoampanicd ty an unqualifrad opinion on sunt financial :Italcmanls from su4i firm. The frnanaial stalememis doll inaludo a balance shad, s l a l emenl s all a pa na tion, o v ina rs' a q ti ity and cash fla v is ilon -Ihe yea n than ended. In a c c it ion, a schedule all Nat Clperaling Inaarnc will be presented as a supplamanlal sctedule to the audited financial s'lalemenls and will be audited in conjunction with the finanaial stalamouts lakan as a AT"IA(IN M HNT NCI. 1-4• DOCS C IC/ 11 S 1 l 9� v t 642; :99-0(1E411 whole. 'Ito 'I I c exilent ll hall 'I he :uesull s a f 1 he Not CIO a n l in$ Income repor and 'I his Noi a nequi;uc hal an Agan a y Parl icipal ion Payment ba ma (IQ, Pa rl icipani it a 11 mak( such payment wilt it , bitl1 (60: da 3ls following the expi:uaIion of tho Parieipanl's fiscal yeah during ilhe term of this Note. Algency shall pliompll,I a(hiise Partiaipar I in the evert chat any parry s(e ks disala sure of the Nat Opanating Income report, vrl a Ihe:u b,I subpoena, coup order on otherwise an (I Parlicipanl sl all ba enlithid to intervene in olider la neL in the oonfidentialily of sual riepon s. fl. Partia ipa n I Clos1 s Aa port. Partia ipa n !hall p nepa n and submit a lieport to Agena )I a f all Partiaipant (Ios-ls a., of -Ihe dale upon mrhiah ti a lmpiva`icmenls ane 501N (tomplote, 711ia complelle and 90% aomplo la, as cerifiad by the Pro'oo I anal it( al, and on 1he dale Par ioipanl is enlitla(I to 1Ihe issuance of a Aelea., a of Clo nslrua Iia n Cova n ar s, at d annually ti a ro a fto n (tuning tha emi of -I his Note, ca naurrenlly wi-lh the submission of tt a Nell Operating Income Reporl. 1. Subordination. Noll wi'Ihstanding any provision expressly or impliedly to ti a act (nary herein, payment oflhc Agenall Parlicipalion Paymen and Aganay galas Share is expressly 'union and out ordinale in tarms of priority and paymenl to ilhe payment of all principal and int(res-1 pa3lrn(nls and other payment and performance obligalions approved by -Ihe Agency pursuant to Scclion 41a al 1he OPA that ane secured, from lima to tima, by deeds of trust on IN Sila, IN Pra'(cl or any parl thereof, pnovided It a l any suah deads of 11rws11 aria not addilional sacuaiil�l for or anoss colla'leraliaed wilh any other oblig a lion of the Par ioipan'I. It is tl a int(nt of the paries that to the ext(nt such fiends are sufficien, annual flat t service it all IQ made from the Parlicipanl's Pnoferied Roturr. 8. M iscellaneous. (a: Clo`ierninl~ Haw. All qucslions with nespecl to the conslnuation of lhis Nolle and the iuig Its and Iia I ililies of the parties I this I` ota shall It g a `I( me (I by the laws of 'I he 9 tr to a f Clalilorr ia.. (b) Binding on Successors. This Nota shall inure a the benofil of, and shall be binding upon, the suaeessors and assigns of a ach of II a parties to this Nole. (c: Alttorreyi' Fees. (10 Ir any a cil ion a a nforce 1 his Tot(, th( pnevai ling par y shall be reimbursed by he olhe r pr rty fon all masa n a bre ate orn(ys' lea a s, cos I s and expenses, ina uned by it in a osl s and expenses foci trial, apps ]lata pica ceedings, our -o fl-cour negotiations, vera nkouts and set1amcnls on llor enforaamen'I oflrighls under any sta la an federal statute, bankruptcy and insolvency prnoceadings such as 1but nor limiled to) seel'ing relief front ita3l in a bankruptcy piuoceeding. The lerrri "expeni(s" means at li expat sei incuniod in connection with anal of tha ouil-ofl-cour, on slate, federal or bankruptcy proceedings raknied to abov(, including, wHaut limitation, the fees and exp( rises of anal appraiseris, consullanls and exparl witnesses r( tainad or aonsulled in connection wish an .1 such proceeding. (Iii: 7te prevailing par shall also be enlilled to ills atlorreys' foes, aasls and expo n ses ina uni ed in at y poi j udgmenl pros a edings 1 o colle cl and a nforica 1 he 'udgmenl . 7 his provision is scpaivale and sa`iaral and shall survive the me rg(n of Il is Nolc into an`I 'udgment on this tot( . J ATI ACHN FT 'II NO. 7-5 ❑CICS CIC/ 119 219, v 1 fllll , 27 9q -f II F6 (jd; Time of the Hssenca. lima is oiltta essence with rospeot to ever)I provision he ra oil, {le; Waivans ty Parlicipanl. Hxcept as otheroiise pnovided in any agluearnont axeculed in conneotion with This Nota, Par icipanl waives: presentment; demand; no -lice of dhhonon; notice all defaulil ar delinquency; nolice of acceleration; notice of puolest and nonpayment; notice of costs, oxpcnsas or losses and intenes l thonaon; and diligence in laking any action to collacl any sums arising antler this Note ou in any puoceeding against aril oil the nighls ou ititonosts in an to properties seatining payment of This Note. Qfl Non-waiveus. 1` a previous waives and no failute ou delall by Participant in l acting with raspeat io the Terms oil his Nota shall. comtilule a via i`ier ail any bnea( t,, default, on failure of aan(Iition undeu this Node. A waiven of any farm of -I hi,, Nole, ou oAany oil the oblit a Iiaris soaunad thereby, must be made in waiting and shall be limitad to the axprass wnidlen lermE of such waiven. In the event of any inoarisistanoios betweon tt a tarns oillhis Nata and the terms oilany odheu daaument 1uo fated to Ile loan evidenaod by tl is Node, the teams oil this Note shall puovail. 9. 5lacuuity for Payment. ll a seaunily fon ilhe Agency's pa,lrnont undan this Proniissouy Node shall be ti a Hoed ail Tru: t. Failure of tha Par iaipani to make frill and Timely payment to the Agency of tha Aganoy Paricipadion Pailmant and/or Agency Refinance Shaue and,lor Agon(y Sales Sham as arid when uequire d he rc uri der shall con: titula an event of "Default" under d he OPA. 26755 VHR11UG0, 1111C, a Caliiloimia limited liat ility sampanil By: Its ATTACH M HT T NO. 7-6 DOCSOC/17 91194v16/0 21199 -Da Fit EXHIBIT A TO ATTACHMENT NO.7 DISIRI BUTTON ON AGENCY HARTICIPATION HAYMENT, REIFINAIr UH PROCEEDS AND SAI E PROCEEDS Distribution of Net Agency Hartiidpadon I'laymi nt Fii si, 'lo p<y Plariicipan I's Araierracl laelum 9 acond, to pay any unp� W Accrued Far iaipant Fraferied Aeiurn Any remainder is distributed 901/o to Agency a:i the Agency Flazticipafon Haymenl and 501/o to Harticiparll Diftributlor. of Agency Refinlanc4 Hrmeeds First to pay Refinance Cos s Se cond, to pa y any unpaid Accrue d Harticipant Pb el erreid Aetum Third, to pay the greater of the Plartiaipant Capital Aetum, Plart'cipant's Costs on the principa amount of any debt being repajd F ourth, amt proceed: to be utilized to fund capita expcTlditure9 to bE incurred w'thin the fa rthcoming thirty-9ix rr ontlh:I Any remaining proceed,, shall N distr'butec 500ia k the Agency as the Agency Plart'eipation F ayment and 50"/,, to Harticipant Db tributiia n of Grciss Sale Prmeeds F iisi, to ihivd party andtor Aar is ipant'., closing costs Seaond, to pay any unpaid Acc rued Harticipant hleierrad Retard 'Third, Part'cipmrs Capital Return, which is an amotmi epua tc the Plarf cipanfPreferred Return di` aided by t he buys is capii aliaai is n i at e F our h, to the Agency up t o the R inc ipa 1 Arr. oun I plus ac c rued sirr pie inter est at tk a rata of 2.0% until the time a sale closing, seduced by any Agency Bari icipa lion Ila yment or Agency Refinance Sh, ne pievieu.ly iec aivad. Any ramaindei i, distributed 21% to Agency and 791ia to Parlicipanl HXHIBIT A- l Ia AT-HA(W M HNT NO. 7 LICICKIC/119J 194v16/f 11:99 -Of eel TA BLE 3 EW PLEOFNCTENVI ENTBAt 0PAYIIBtTBITSALE IIE31C0 LIIDO-VACIEtOW1181EWILGIMI BAN JUAN CAPISTRAI I. CALIFO RWA Project Raanwe Pal d tIOmit lnwce 270,8 0 i 1700 2 100 30 ,70 310,9 0 329,60 342,10 356,50 370,60 3&1,600 Leae:VaeeFry&Clledton jam( (141001 JAM am f15^6001 (16.5001 117.1CG1 117.6001 (may] (14.7001 Groi t Intone 25 ,E 0 2 7,6 0 278,30 25 ,50 3 1,100 313,10 321,70 336,70 312,30 30 ,100 Opera n9F* nm Unrem6msedOfict Exp (31A0) (34,C 01 (15,010) (70,101) (37,210) (36,310) 119,40 ) (44,01) (41,610) (43,100) Mal apemer1 (7,50) (8,001) (6,310) (8,701) (9,001) (1,410) (8,601) (10,2011 (10.50y {11,001) Reserns iL,1Q9) = LL,i9m 1i,54p1 1i,54p1 = iiii&i LLM LL17@ iL1G41 T. Ial OpedN 5c) era s 141.6001 143.3001 2M {46.100)4�j,','�gj [/Q,QQp] am E5 -in IMM NiIOpermkgIne ne 201,110 224,310 233,70 241,401 213,610 214,10 275,10 286,60 216.601 310,BOI DmI Cc ds M01,C 0 Garment Conaileraian Paymani {8 0,C 0) Pail'dpalusts 3C51,C 0 Part lar Pref eadRetun 7.010 213: 0 213,570 213,570 213,5 0 213,570 213,570 213,570 213,57 213,57 213,9 Paymai I c IA wed Rea n 4,770 Otstrbrikle hcat e 0 5,910 20,131 21A31 40,010 50,5 0 81,0 7,M1 85,010 9 ,330 Agency Pamicip" Payqar S1,01 0 (2,88) {10,0 5 {14,815) (21,015) (25,2 5) (10,615) (3.515) (42.515) (41,16) Parf l spar Resided CU h Floc 0 2,980 10,061 14,815 21,015 25,281 51,615 3.515 42.515 41446 mean. Agna d Parti qui Rel m 4,771 C 0 0 0 0 0 0 0 0 Gros Sala Proceeds 8.5% Cap n t 4,7 3,0 0 ] Less; Costs ofS& 287.0001 Net Sal Proceed 4,496,00 1B]Aecnmd and Unpar I F ddpanl Refined Rohn 0 JCJPar( l!par Cap'W blain 8.5% Cq rat 3,286,010 ABEncl PICO ymerd MIM Dielrbuteh a SI a Procee la 301,750 ApmSI@ BTsen 15.1 175AB Parf I PlN Shan t 1 21,313 prom'saary Note pnrapal 950,000 AccruodSrnplelntered 2.0% 19,00 18,001 10,00 19,001 10,0 0 19,010 19,010 19,CAI 19.010 19400 Promissory I late Pnnapal dual sea 950.000 CuMAM Acenaed Set plc Ir Irl Isl 190.000 Cxoss AmmntOwed d Sale 1,140,000 Less CLm14trre Ap %y partiCip0m Payments 131,750; Net AmouA Owed to Apncy at Sate 908,250 I'M Mid b Anur llas as A erlres, hc. Flee me;Va4rgl5Wal-Hob SGMI FIN, r'7AawAR EXHIBIT P -2110 ATTIACIH MINT NCI. 7 DOCSOC/1 191112 v16/0 21 1 S -00 811 TA6LE4 EXAIIPLE U SECTIN 4.3 LOM PAYOFF IT ENO OF YEAI ID ME) C6 LINOO-VACA E10y4E8TMILOING W Jll,1 MCI PI8TRA11, CAL 1110 RA Nwis, ay Nota Prbarpm 1291 12 LI 199 11d[I 100 Y11[ri YIILQ 12KI lal lal Yaa 10 P � Rewm es Pd o tid Creel Inca a 2P .901 281.700 2 3,0 0 304,700 356,90 329,800 312,801 356.500 370,901 385.000 LesiNscalcyA Colec5 n (21.301) (14,100) (14,701) (15,200) (15.80 1 (10,500) (17,1015 (17,800) (18.501) (10 NO) Grail Income 251,001 257,800 218,300 289,500 311,101 313,100 3 5,701 338,700 352301 386300 op, ariq EW -1 Unreiriblr lad 015ce Exp. (13,001) (34.000) (31,001) (36,100) (17,201) (38,300) 419,4011 (40.000) 141,801) (43.100) Menapmr (7,501) (8,000) 48.308 (8,700) (pool) (9,4011 (1=1 (10x06) 110.001) 111 ON) Reserves iia = = = = = IM I= am i114p) Tot Opel(bn9FVenaei (41,800) (43,300) (41,601) (46,100) (47,500 (49,000) (5,501 (52,100) (53,700) (55400) Rel Opera in9lncarai 20 ,80 224.300 23 ,700 243.400 213,601 264,100 215,200 286.600 29 Le 10 310,900 Ilret CoO 4,001000 Cad ant Gonsideradan Payment [950,000) Padidpai 1 C093 3.051.000 Pail partPrdemedRdunl 7.0% 213,570 213,570 213,570 213,570 213,570 213.170 2 3,570 213,570 211,570 213,570 Payment aAarneIRebla 0 4,770 0 0 0 0 0 0 0 0 I 'slrbura Ie Inco e 0 5,960 21,130 29,830 40030 50,530 61,631 73,430 85,010 97 330 Agency Particlpa ion ftyrn rt 50 o% 0 (2,980) (10,084 (14,915) (21,015) (25,265) 410,815) (39,515) (42,515) (48.865) Per cproa Reiidut Cas' Bow 0 2,980 10,061 14,915 21,015 25,25 31,815 36,515 42,515 48,565 memo. Accrued P dicyanl Retire 4,710 0 0 0 0 0 0 0 0 0 PrombW Nate Principal 950)000 Accrued Simile Insall 20% 19.001 19,000 19,010 19,000 19,001 logo 1o001 19,000 19.06 19.000 Nwis, ay Nota Prbarpm 9w,000 Curmlmr Accrue Wogs Irom I IQ1,E Told Armes tin ed 1,140.000 cumled'd A9errey Participation Payments (231.750) Net Aa an OwedloAp" 908.250 Req! od W. p pe Mnahi Al oc6w, If i Fie ema 41 Pp aftd- Nabi Oah Pet U119Mo FIR UIF I11I11 A-: TO ATTACHMENT NO. 7 DOC9OC/121219411ld/072 29 9-901 d A TTAUHM HNT N O. 8 DHHD OF INUST WITH ASSIIGN MEND OF RHN TS (SHORT HORM J RECORIKHO RECILI HSTHD 17N AND WH HN RE(ICIRI:IEII MAIL HO AND SHNL TAM S'HATHMHN79 310: San Juan Clapislnano (Ia mmuniily Redo iia lopma n Agency 32400 Pasea A dalanlo San Juan Clapislnano, (IA 97(179 Atl errl ion: Spann Above Ibis I inn tkr Recorder's Use TI is( oaurn ent is emirrI t flrcni th Imyniei toll a reaording lie pursuant to Gavarnment Code c natio n 77381, DEMI] OF TRIJ S71 WITH ASSICIN M EN7 OF RV 'IIS (ISHOR-H FCIRM) this AHED (IFI 'HRUST is made as of , 200_ t elween 26755 VERDUCIO HUC, a Caliilornia limiled liabilily company it"Tnuiton";, whose address is 26133 Vendugo Sheet, Sui'le 200, San Juan Clapistnano, Cla liflornia 92675, T11T1IH COMPANY i I"Tnusta o , and the SAN JUAN CIA RIS'DRANO COMM U N I IN REDHN ELOHMEN7 AGENCY, a Hut He t a c I` I, a orponaV and fl o I it is (I"Ela nefia iary"). WITINESSE'AH: 7t a l Trwslon gnanis to llrwlee in Inus I, wilh poweii ofl sale, II a1 Hnoperly in It e City of San Juan Clapisl:uano, County of Change, Sia la of Clalifa rnia, desciiibed as: SHE 1INHIBIT "A" AWHACHED HHRHTO Ah ID MADE A NAR7 HHREOH. lagan or with the iuents, issues and gnofils Iheneof, subject, howeven, to the right, powen and aulhonily I crainaftan given to and eanlenled upon Beneficiary 10 collect and apply such vents, issues and piuofits floe the purrose of secuning +)) that aertain Hnomissory Nole more par ioularly dasenibed belovy axecul ed and da lNc re d punsuat t ]o an Ownen H a rl icipat ion Agre a menl between TUuust on and Heneficiary dated as a l , 200_ Ott a "Agneemenl a copy of 11 a Algreamarnl is on file witt Its Hanefiaiary as a public neaond. All capilaliza( 'lerrris not (efined Ierain shall lave the meanings established -Ihe:uefaa unden the Algnearnanl. 'Hhis Dea( oil Tnust saauros payment undeli 0 at a eru in pnomissory note dated as oil ) 7 0 0 _, mada by 7austo a in lavon of He nefia is ry it tha pnincipal sum of L.S. l99fl,flflfl.flfl (11he "Pnomissary Tata"J, and extensians on renewals tl aneal wiilh ll e t alance of ti a in(at tedness, due and payable on occuntence of an event of accelanation as defin ed in tha Promissory T ate, 112) IN penforrnance of each al neanianl of Inis,lor h oarponaled t `I r4fiinenea on cornlained t ane in, It a default unden any afl vil ioI shall aonsliilule a default I areundar, Q]; payments, ifl any, otherwise (iia and payat la unden the Agneemer t, (14; payment of additional sums and inleresl 1heneon which may heneafler be loaned to Trwslon, an his successan a a assigns, when evidence( [)I a pnomissony nota on nolas recilinj that the)l are Seating( by AT'HA(IF MBNT NO. I-1 DOCK IC/ 17 97194 v 16/421299-00 811 This Datd (iI lrus 1, and (I; penformanaa under HxhibiI "B" whial is attached hereto and incorrlo:ua-led heiiein by iiiefaranae. Tio p:ilatac1 tl a seaunity of this Deed of 711us1, and wilh : espeat to The pnoper y above desc: ibt d, 7lnisloiiaxprassly makes each and all ail the agreements, and adoplls and agn t s to periform and be bound by t ach and all of the perms and provisions set forth in tut diilision A, and ill is mulually agreed shat each and all oftl a ttrms and prallisions sal forth in subdivision H all 1he fic1tiaus deed oil ll:inlsll nr aord4d in Orange Counlly Augusl 17, 1964, and in all attar counties Augusll 18, 19(14, in the book and al 1he page a1CITNial Rleaandi in the ailfice of it a counlly : aconda:il al The county wl aro said piioperty is la a alled, nol ed br low oppos i l a -Ihe name oil i tie h tour ly, namely: 00U111Y HOOK PACE COUNTII Ba0K If Go UOWIT'I HOOII HAGS aOUNIY BOakl IA CA A lameda 1288 556 Kings 858 713 Flacer 1(28 379 Tierra 38 187 A Mine 3 130-31 Lal a 437 H I Flunas 16(1 1307 list iyou 506 762 Mceartm a133 438 Lassen 192 367 Fiverside 3778 347 7olanc 1287 1121 Hutte 13311 513 Los A geles " 3878 874 Sacramentc 509 124 'toric ma 2067 427 aalaveras 185 338 Madera 911 136 San 8 enilo 31C0 4(5 7tanislaus 197( 56 aolusa 323 391 Marini 1849 122 S.Iernardinc 6213 768 'lurler1155 585 0ontri 4(184 1 Marl. sa 90 453 S.lraneisca A-804 596 Tehama 457 183 0asta H el 1 lorle RI 549 Mends cino (167 9 9 S. Joaquin 2855 283 Trinit)I 108 595 Ell D1 ra-Io 7(4 635 Merced 1660 753 S 1 uis OttsFc 1311 137 Tulare 253( 108 Nresm 5(52 623 Mcdoc 191 13 San Malec 4778 175 Tuolumne 177 160 0 Tenn 469 76 Mcno (19 302 Santa H arl ara 2((15 881 Ventura 2607 237 tlunibcldl 801 83 Monterey 357 239 Santa 0lara 6626 664 - YC k 719 1 1 Imlerlal 1181 701 Nala 704 742 Santa aruz 1638 6(7 Yul a 398 193 Ingo 165 672 Nevada 363 94 Stasta 8(0 633 Hern 37511 690 Oralge 7182 18 San Diego 19(14 149774 Series 5 it all inurle to and bind 1he parlies heiie'lo, wilt respeat to 1he gnopery above described. Said agrleemarits, lerms and provisions conllained in said subdivisions A and B theneal (lidenlical in all counties, and prin'led on pages] and 4 hereof] ale by tl a wi'Ihin ralenenae lhenelo, incorFlora1ed henein and made a part of -1 his Dead a l Trus l ton all purlpa ses as fully as set fork all length henein, and Hana fia is ry may a ha rge ilou a s1 alement regarding it a oblig a l is n secured hereby, pnovida d tl a change lhenefar does noll exceed 1t o maximum allavned by law. Tlhe undersigned lru's'lor, ieques is llhal a copy of any natiet al defaul-1 and any noliae of sale hereunder be mailed to him al his address ht neinbalow >ta l for h. IN WI78NESS MIHHREOH, T1lnislou 1 as duly exealited this Deed of Thusi as allhe data fillsl abovr v+lritlen. "Truslor" 26755 VHRDUGO, DI1C, a Caliilornia limi-led liability eampanil By; 1t9: A`➢TACHM BN7 NO. 8-2 D(la 5 OC/12q215 4111 fl/01215 9-9036 HNIHIIBIT A TO ATTACHMENT NO. 8 LH( -IAL DHSCRIPIIION Lot 4, of'HrE c-1 11 z , in the City of San Jug n Clapisuano, Counly of Oziangs, Sllale of California, Es peri map uecoiided in Book 11, Page 2:1 of Miscellaneous Maps, Rec a Wi a n Ouanga Clounty, California EXU 1311 A-1 TIO A`➢TACIHMHN7 NCI. 8 Will 219 9-0016 EXHIBIT B 10 A TTAUHM HNT NO.8 RIDHR TO DHED OIM TRUST Hxhibi-1 B iI o Dee(I oil Trust v lith As signment of Rents dated as a 11 , 200_ ("tl e "Dead of 7rusl"J, execule(I by 26755 Nondugo LBO, a California lirnited lialilily company, , as " OrusWr", to Company, a (la 11ornia cogla nation, as "Trusla a", fa n the benefo of ti San Juan Clapisinano Clommunity Radavelopmew Agoncy, a public Lady, 4ofTlonate and politic, as "Benaf(ciar-A". 11. DIVA UL1. A do fault or breach under anti of the fa flowing sha11, al Heneficiar)l's option, constilute a dolautl undo this Dead of'Ilnust: Is) A default under that certain Ownen Par icipa-lian Agncemenl, exaauled by 7nuston as Participant and Benoficiaryl, as Agency; 1b) A dela all undan any of ho n dead a l i nusi enc un1 t o ping the Site. 7. DUI ON S AILIF OR IIINCIUM HRAr CIE. In the event a f any Tlransfell 11as defined below; of the Site, or any pariion Iheneof an intenesl Ihenein, Benafie iary shall I ave the ab;iaMe nighl at i-ls option, wilhoul Inion demand on n Iiae,10 declane all ,funis soaLine (I I arat y immadiatoliI clue and payable. As used herein, the tenni "Tnansfan" means and includes ti a dineat on indinact sale, lnansllen, conveyance, mortgage, furthen encurntnance, assignment, on other alienation of the Sile, on any portion theneof an intencsl thenein, whelhen iia lunlar}1, involuntary, by openal ion afl law on atl orwise, the execution oil any irim Ilmont land sale contnact, sales agreement or similan ins Inument ailfecling all on a portion oflhe Side, granting clan option la pllncl ase any portion aloe intanest in the Site on any inleresl It Groin, on tl a lease of all or sut slanlially all oil tI c Site or of a ll on subst:anlially all of the impnovamants siwaled on lIc Site. Failuna oilBenaficiaryl to exercise the option to deelana all,urns seaurad haneby immedialely due and payable upon a Tnansfan will not cons lituta waiiian of tl a nighil to exerciso t1 is option in the event of any subaoquent Tnansfan. 13XHIHI7 H-1 TIO A1ITAICIHMENI NO. 8 DOC a (IC/l,'9119 41116/( 2129 9-11 (8 (I STATE CIF CIA LIFORNIA COUN 11Y OF On pent onally appea ned , ba lone me, 91. (lriot Nane c1111ctaq Pul lie) , Nolar)I Public, who plla)lad to me on the basis of salisfactor-A evidence to be it p non, Is wt ase names; is,lalle out scmibed to the wilhin inslrumenl and acknowledged to me -Iha11 t e.l,hejhhey exaouted the game in his,1hei0heir autt anized aapacilyllies,, and Thal by his/1 ar/hheirl signatune(Is; on the inslnimenll -Ihe pemsonlIs;, on tt a eniTy upa rl t chaff of whiet the garsornls; acted, a)laculled 11he imtnumenl. I cer ily under PHNA11111Y OF PHF 3L h Y under 11he laws of 1t a Stale of California 1t a1 the fa mega ing pa nagnaph is tnue a nc a orrea t. WITNESS my hand and offlaial seal. lignitare oll Notar) Hut lie OHTICIIY AIL Tl augh the data Nlow ii t at naquined 1 )I law, it maJ1 lima Nie valual le to pemsom n41yin8 or tl a document and could prevent I Pilaudulant aeattaahmant optf is hrm. CATAKII'IN CIUAIME11 BY SIGIIEH U Individual U Coria rate Oilfica ii lith(s) p Iartm r(s) ❑ Limited ❑ Gen+ ma 1 0 Alttomey-In-Fact ❑ Trusuc(m) U Cluardian/Conservatar U Gthar: 3iln4r is ni piesenthg: PIams 01 Aarson(s) Or antiry(ii s) DC IC' C IC/ 119 :1 l 9,lNi l EII(1 a:1 ] 9! -0(18 5 13V CIHIP l ION OF AITAICI- El] IIOCUMEn I TithOrT)lp OlDacumint Numl 1 r 01 Magi s Data O D41cm4nts 5igrar Is) Otl er TI at Mani d Abaue STAM CIF CIAIIIFORNIA CICIUNTY CIF On person, I ly all EI c arc d , befa na n 4, Ss, (Brim Narno of Notary cut Iia) , No tary Pub] ic, vnl a proved 'I o mo on '1 he basis al sa t is fa a I ory evida rl a c to N 1 he perlsonils) whose na n a(l) is /l, na subsonibed Ito ti a within inslrulmcm and acknowledged 'lo n a that he lsl a lthey axecWed 'Ihe same in hia/NrAhein aulhojih ed capacity(ies), and ti a l t }l I iYhea ltl air signavagi) on the instrument the garson(s), onlhe artily upon behalfofwhich'Ihe perlan(j) acted, executed tha ins'Irun ant. I iartifj under PENAIM CIF PERJURY midar the laws of 1he Stale of Claliforria 1hal 1ho foregoing paha grla ph i; II rulc and come Ci. INITNE SS my hand and official seal. c igl atura c . Nc tart Pul iia WHIONAI Though the data below is not :eyuined b,I lard, it niay pi o,ic hateable to peiisons iieliling on the docunient al d coulc prevent f.lauc ulent rcatiai t meat oil this 11orm. GAIPAICIIIY MAIMED HN SICINER ❑ Inc ividual ❑ Corporate Cffictn EIESCIRIPIION OF AITTAICIHEEI UCICIUMEN11 litle(s) litle ( r T) pe ( f Document ❑ Partnen(i) ❑ I invited ❑ Qoneral ❑ Attorney -In -Fait ❑ Tru itee (s) ❑ Cluancian/Conservatan NumlerOfIafis ❑ C thir: Iignen is neprercnting: Nemo 01A-usci(s) Or Hntitfil (iss) Dari 01 Documoriis SiEaer(s) Otl cr TI ar Hamid Abase DOCSOC/ 1191 194 Ni I d/a �:I 2 99 -01 8 6 32400 RASED AIDEL.A?110 SA?I.ItIA?I CAPISIRANO, OA 92675 (949)4913-1771 (949) 493.10! 13 FA] tivv w.sainjuancapisinann.org TRANEIMIITAL -lo: 13ric Allman, Beriiinglan Flroper ies 26755 Vendugci S'IVEIElt San Juan Qapis1rano, CA 92675 DATE: Rebiivar�l 23, 2009 RROM: Mania N arnis, Depu y Clity ClEirk (949) 44 3-6309 RE: Own en Rar icipai icin AgnEmmen1 8nclasEid: WINW ERS OF 11H1 CITY 000NU II SAM ALI EV/ TO U URA IREESI I THOMA7 I W. HRR3AR MARK NIEL.r ET C R. I OPIDRI 10 LISO (1) ciriginal, execulEid Owner Rar icipalian Agneemeni as appnoved by the CammUnilly RedEivEilapmen' Agency an REibnuaryl '17, 2009. 11 you- have questions concenning the agneement, plea SEI contac- Douglas D. Dumhari, 8ccmomic DEivelapment Managen al (94 9) z43-6316 Cla: Douglas 11. Dumhad, 8ccinonijc DEivelapmen Managen & n .iiiar CGpisjlrc rn:.TIreservMg Mlle PIGst ji(i EV, liar, ce i1he Tkulure cRrinled c 104N recycled pq par floc ay's Elialle: Febnuar)4 5, 2009 CO NTRA CT TRA NSM ITTAL CIP Na. @1 any): Timnswilitilall Routing (Checl All 11hal Apply) ❑ Cfly Aboiney ❑ City Managen Agency Secrellaryl Pnoject Ma na tier's Last Ne mer Dauglas Dumhar Rhanicii3xicinsion:X6316 Cau nail ar CRA Maetirig Date jil arlpillaah le): C12/17,109 APPROMING AI El Mayan is CRA Chai, E Execuiive lar alit Navide (1) Exec-._---- - - ----- -- ---- -�� --.- - v agneemenl is to ----- - be iiecard ed — ci- PlEa3E pncivide the mailing address is incl n is it c/uaeid it thei corkaall Name(s) Street CITY Si Zip Eric Altman. Berrington Properties 26755 Venduga SIreE'I San Juan Capisiranci CA 92675 OTHER I NSTRUCTIC NS: RIE ase ne,lUnn a copy of the exeCUIEd agneE ME nt W Elauglas D. EILImhar . CRA 21ll7A2009 AGBNDARBPOR7 BZ 110: Davu Adams, EXEICl11NE1 Dinecion �Xj FIROM: Douglas D. Durnihart, Econarnic DevEdopmuni ManagEin MBJECT CansidEiral ion of Fevisicins to OwnEin Ramicipalian AgreEimeinl -o RrovidEi RWMEiloprrieni AssislancEi la ihEi Raseai ❑o NjeidLigci Rrojec' — (20755 Verdugo, LLC)*Cit)l Caur cil Prianity Na. 19fi1 RECOMMENDAMON: By moticin, appravE1 1hEi iiovised owner paricipaiian agneernEini 'Io pnavide nedEivelapmEint ass isiance to thEl Raseci De Vendugo Project in IhEi farm o1 a $950,000 loan. SUMMARY: On DEicernbel 'IE], 2008 the Baand aansidenEid an Owners Radicipatian AgMemEini (ORA) ,lo pravide the Paseo Be Verduga pnojEict financial assislancEi in it a fonrri of a $950,000 sirmplE1 inlenElst loan with pnavisicin fail paybacl al thEl laan if IhEi dovelaipmEinl's pnarli'labiliiy excauds it a pno4onma esi imalas. AIddii icinally, upan any sale all thEl property it a ORA pnovided fan the DevEdciper is nEicElive a basEiline reiunn t al is carnipuicd an the sale capi-lalizai ion ra-Ei and l he DevEdcipEir's pnerlenied nEiturn. The Agency would have received 50% cif it a procouds in excess o1 salc costs and thEi DEivelopei's prelkinnEul reiunn. Tho aoand aanditianally appiuived ihEi OPA such tha,l iho Agency's loan and any accnued iniEines' rriLisi be nEr ined prion io disbLinsEimEints of sales pioaeeds in Eixcess of 'I[ a sales cost and DevolOpEin's pielernEid nErIUnn. Addiiianally, thEl Bciand ct anged the par iaipaiion ra1Ei all thEi excess pnocEieds to t e 250/1 1a the AgEincy 75'/4 to ll ho cWnel in reccigniiicin of 1hEi pnavision Iha- the loan and accnued in'leimst must be repaid p0cm to dis bunsernienis. Scatian 3.3 o1 1ho priomissory noiEi contained as Attachment No. 7 -EI of it a ORA has beEin nuvis ed as follows: It Ei Rariicipani shall dEiducl fnom the glass sales pracceds: [FI] llhind Rarly Cos a arl gale; [a] any accnuEid and unpaid Partiaipani's Pinfenned F aiunn; [C] it Ei grea ei o-1 (i] the Raoicipani's Clapiial Feiurn, which is an amount Equal is 'It a Rartia ipant's Rno'kinned Rerluin, calculated, as of the dale all clan ing, based on Rartia ipant Clasis at clasing, divided by 'Ile bUyEir's Capitalization F a1El, on (ii) Rartia ipant Closis al closing; and rDLan amount D to the Principal Amour accruina dMie_i_nterest at the rate of two pergent (2%} nen annum from the Agenda REip or Rage 2 February 17, 2009 Bxt ibis A to IhEi pnomissaryl WEi entitled, "Disiribuflon of Aguncy Rariicipaiion Raymeni, RefinancEi Flnoceeds and Salu FlnciaeEids" has been madifiod la rellucl the Boands nEiVisicin as lollaws: Dis,lribu-lion of Giass Saki Rnoceeds Finsil, to ,It ind party andkin Flarticipant's closing costs SEicond, to pay any unpaid Accnued Parlicipanl PnEifenned Reilunn Thiiid, Radicipani's (lapiilal RErlunn, which is an arnounl Equal is 1hEi Har icipanl's PnEdhinEid Re'lunn, dividod by 1hEi buyEin's capilalizalian na'IEi �• 1 •.1 • • i 11"1 • s•1 i" 1.-.l 1- � - r Any nemainden is dis'Iribu-led �592.#I% 'Io AgEincy and ;50ZJI/c -la Hartiaipant Me Own& has nevimed thEi aaand appnovEid modifiaaiicin and has laund Iho 'I(inrris 11ci be aacep'lablEi. 1-oweVEm, whilEi ie-neviewing thEi ORA and pnomissoryl no'le thEi awneii has nequEisled Ihim rnincu novisions. 1.) DEde1Ei 9Eiciian 4.2 — AgEincy's ElEiclion 'lo F(ingo Figency SalE1 9t anEl. 2.) Add a clause lo the OPA in eVEmt the owner is unable i(i sEicum imancing due lo 'It El mankEit aanditions the ownen will haVE1 the cipporlunity la viuim laan funds advancEid for prepanalion of consiuiciion doaumen1s la avoid AIgenay kirEiclasunEi on 'lhe pnaper y. 3.) Exond all ErffecliVC dalus in'J El ORA by twa (2) mcmihs. 9tafl finds 1 Ei awnens lhneEi mvis ians to bEi accep'lable and recommends the follawing changEis is the ORA: SEietian � .2 of the Flnamissaryl note pnovided as Atiaahrrmnll 7-4 cUhe ORA ilei be del&Eid in its Eintin6y. SEiction 409 of thEi ORA is modifiad to include thEi panagnaph below addressing relunn of advanced loan pnacEiEids should iho ownEin fail to sEicunE1 consiniclion financing: 1 1- -1 .i- 1- • •1..• . . 1 V =-- • 1 Agenda REipar Ragle 3 Flebruary 17, 2009 The Schedule of Rori cinmanco pncmideid as Atl as hmeni No. 3 la the OPA bei nevised ici nefleei a Flebruary 11, 2010 deadline fai suk rriissicin of aamplelo cansiiuiciian daaurriE nis la the Ciiy far plan ct eck and building permits. A nEvised and nEsialEd ORA has been pnepared and is pnavided as Atlachrrar 1 'I la This nE par . FINANCIAL COIN SI1I9RATIONS: Funding 'Ion this loan has beEn pnagnammEd fnam the 2008 Tax Allacaiion Band (11AB) piciceEds. ThE Sct edule cK Rerfoirriancf IE q ukes the Participant 1a submit building plans by FE bnuarA 11, 2010. IN 0111RICATION: Bric Altman R9COMM9IN DATIOIN: By matian, applcnie rte nevisod crwnen pariicipatian agneEmEnt is piavidE nEdevE lopmeni assis'lancE W the Rosea De VE nduga F1najE ct in the fanm cd a $950,000 loan. Respect ully s ubmitiE d, C auglas D. C urrihar Bcanamic DEivelapmE ni Manageii AttachmE nt '1: RE vised OwnEin Participa-1 ion AgreE me nt wiih 26755 VE rduga, LLC W to •, 1!1 1 1! 1 •1 •, :1! •1111 u• •, , lu • ,< •-.1 1 1 1111I-11• .1 • :1 • 11'1 _ _! • l Il._1fill -11�1 T?• • 11 1' i!' 1 1! 11:21111 1 ' l ' . : , l.. l : 11,71,1111111 1111 1 l l " • ! • 1 1 ! = l ! 11 ' 1 -.1! 1 _ �+ "ll' l llll-• _ �- •11- 1 -1! • � 1. iiiii�ill! 1111111111 IN! TOR s 1 l 1 • - - • 1 - • • • , , - 1 - • • • 1 • 1 III RE! IIIII 1 11 1 - • 1 1 l • • 1 • Il - l • 1 • : Il = 1 = I: 474 Lf A The Schedule of Rori cinmanco pncmideid as Atl as hmeni No. 3 la the OPA bei nevised ici nefleei a Flebruary 11, 2010 deadline fai suk rriissicin of aamplelo cansiiuiciian daaurriE nis la the Ciiy far plan ct eck and building permits. A nEvised and nEsialEd ORA has been pnepared and is pnavided as Atlachrrar 1 'I la This nE par . FINANCIAL COIN SI1I9RATIONS: Funding 'Ion this loan has beEn pnagnammEd fnam the 2008 Tax Allacaiion Band (11AB) piciceEds. ThE Sct edule cK Rerfoirriancf IE q ukes the Participant 1a submit building plans by FE bnuarA 11, 2010. IN 0111RICATION: Bric Altman R9COMM9IN DATIOIN: By matian, applcnie rte nevisod crwnen pariicipatian agneEmEnt is piavidE nEdevE lopmeni assis'lancE W the Rosea De VE nduga F1najE ct in the fanm cd a $950,000 loan. Respect ully s ubmitiE d, C auglas D. C urrihar Bcanamic DEivelapmE ni Manageii AttachmE nt '1: RE vised OwnEin Participa-1 ion AgreE me nt wiih 26755 VE rduga, LLC OWNER PA RTIC IIPA TIO N AG REEMDNT b3{ andl between Ilbe SAN JUAN C APISTRANO C C MMUNIT M RDDEMELOPMHND A GENC b and 2( 799 `iHRI UGO LLC DCIC9[IC/l79214,IvId/422249-0486 KnIACHMUN T 'I 1ABIIE CIF CICINTHNTS Pate 100. IN'DRCIE L CICIRY PROVISICINS...........................................................................................1 101. Dafinilians.....................................................................................................................1 102. Reprasenlaliom and Vvlarranties.....................................................................................1 10 3 . Pna 1 ibilion Against Clhange in Ownership, Manag a meal and Conlnol of PariaipanI.....................................................................................................................6 200. CIONDITION CIF 1HE SITH..................................................................................................... 8 H1. HazaMaits Ma tonials......................................................................................................8 20 2. Indemnit] 1......................................................................................................................8 300. FINANCIIAIJ PROVISICIN9.....................................................................................................8 301. Covananls Mian .............................................................................................................8 3U. Cond it ion of E is buns ema nt........................................................................................... 8 400. E HVHLCIPM ENT OF THH DHN EHOPMHNT PANUIE............... I.... 9 .................................... 401. Deva lopma nl oil 1I he Si le by Partin ipa nt.........................................................................9 447. Cost alClansilnialian.....................................................................................................9 443. Commennamanl and Completion ofClonstnuclion........................................................9 4041. City and Olhetl Goverrmenlal Aganay Permits.............................................................9 401. Bodily In''Lry and Pnopert`I Damage Insunanaa.............................................................9 110(l. Rights oil Aaaess..........................................................................................................10 407. Nondisanimination Duping Clonslrucilion.....................................................................10 X143. Taxes, Assassmants, Enaturnl names and IJiens............................................................10 449. Submission of Evidence of Finanaitlg Clommitmants and Man Clo;ling....................I l 419. Mor gage, Deed of 1111usi1, Sale and Ilease-Bank Financing; Rights of I]( Mors.......... I l 41 1. Ra la a s e oil Const ruction Clovenanl s.............................................................................13 500. CIOVHNANTS, CICINDI-IICINS, RHS'DRICIIlCIN9 AND REPAINMHNT CIPILIGA'DICIN .........................................................................................................................14 101. Use s.............................................................................................................................14 102. Opellw ing Covenant.....................................................................................................14 101. Tananl Reslnicliom......................................................................................................14 104. Mainlananae................................................................................................................15 101. Righil s oil Acn a s s ........................................................ .....15 ............................................. 106. Nondisatliminwion.......................................................................................................15 107. Repa`lmatit CI1 ligation.................................................................................................17 .101. Effect of Vis dation oil l he 'Dermis and Provisions oikhis Aglueema nt...........................17 600. CIHNHRAII PNOVISIONS.............................................................. ........................................ 17 601. No l is es, E ema nds a n (I Clommu n is ail ions Among the Paries......................................17 602. Conflia Is of lnlenesl.....................................................................................................18 603. Enforced Delay; Hxlension oil limas of Panformanae................................................18 604. Nonliability oil Offiaials and Hmpla�laes oilthe Aganay.............................................18 60;1. Commencamant o1 Agenay Review Paniod................................................................18 DOCI OCI 13 9319 41116/O , 29 9-11(8(1 11AHIJI CIF CIONIENIS (Clop l in tic d) 74 V. 13111,61U L181 AND REME DIE S .............................. 701. l3afauli3 -- Gone us I ...................................... 702. Regal Actions .............................................. 703. P iI I is and Remedies Ane Clurn ulativa ........ 704. Inaction Not a Wlaiver a 8 Da8au11................ M. SPH(IIAU APOVISIONS......................................... 801. lndemnifiaa lion A1he Algancy.................... 802 Fleal HstWe (lommiisions P ................................................................19 ................................................................19 ................................................................19 .........................................................1111...14 ................................................................14 ................................................................ 4 ................................................................1 4 ............................................................................................1 1 803. Sucaas.iam In lnileuest..................................................................................................1 l 804. Almandmants -lo 11 h Agueemenl..................................................................................1 1 805. Hnlina Algnaernan'I, Waivens...........................................................1111..........................1 1 806. Hxeculion of Algraamaril..............................................................................................21 AITTAOHMDNTS Altlaal rnanl No. 1 3ile Map Altlaal rnant No. ', Sile Regal Dasci iptic n Altlaal rnanl Na. 3 3 a I adule of Pcnformance AIll aal rnant No, 4 release of Clonstiudion (Ionananls A111ae1 man I Na. 9 Memorandum of AI€ raaman'l Athol man Na. tl Prevailing Wage and Public Wort t RequinemanA Atlaal rnanl Na. 7 Puomisrary Nota Atlaal mentNa. I Deed of Tiusl rr DOC9ocn 21 2 IS 411111/0121 '9401 EI QIVN NER PA RT IC I AAT I0ri A GMEEMEr T Tl is OWNHR HARTICIIHAITION AGREIMEN7 (tt is "Agneoment"I is anterod into by and I e Ivicen the SAN JUAN CAHISTRAN CI CION M UN171Y REDHVELOHMEN 71 AGHNCY, a public body corpor, la and pa litic (tt a "Agana3l"I , nd IIIIH VHRDUGO ULC, a (h lilorr is limited liability company (ti a "Partiaip,rrl". . MEC1'DALS The Hollowing noaitals ane a ;nil s'lantive par of this Agneamant; ca pit, Ii2ied terms usod hanein nd not othorwho defined ane defined in Section 101 of this Algnaement: A. 1 he Agena l l is authorized nd empowened unden 1 he Clomnr un ity Redeva lopmen t Ilaw, to anter into ,greaments fan the acquisition, disposition and development of heal property and otherwii:ia to assist in -Ihe redevalopmant of ne,l property will in, nedevelopmant llnojeat area in aanbrmiity with a redeiielagment plan ,dapled fon sual ,rea; to acquire ne, I,nd personal pnapert1l in redevalopmant pnojaal areas; to receive aansidellalion for Ile pnovision by the Agency all redevalopmant aisiatanoe; to make and execute coninacts nd o1hen 1n91rument9 nacessar)l an a a w ie n ie nl lo Ito via ra ise of its powers; and to incun in dQ bl o dness to fin, nce or iiefrn a nce nedeva lopma nt pnoject s. H. Par iaip,nl is the Ownen al cerain ne, I piioper)l which is depicted on the Site map attaol od hanato a,1 Attachment No. 1 , nd move partiouh rly deaaribad in the Site Ilegal Description artaatod l anoto as Atlaat mart No. 2 (tha "Si -Ie"'. 'llhe Site is located wilt in the toundarias of the P11a joct Araa fan the Redevelopment Plan (east , s heneinafilen definadl . CI. 1 t a Agency , nd the P, rlicipant dasira to anter into thi:i A111n4amant in andan to provide Hon t1 a making of a (lollon,nls Ila, n (as I anein, flen defined) by Agency to Parlicipant, and for the impnovemenl of 1t e Site t y P, rl icipant. D. 7t a nnovision of It a Clovenanta , nd aonslruction all the Irn pnovements t 31 Parlicipant will t alp to aiiminate bligh'I in the Projecl Area, inane, se the omplollment oppor unities witl in the Pra,jaal Alna,, goner, le addition, l taxes wilIh which tt a oomrnunity c, n inane, se and assist in piioviding an envinonmerrl HIon 1ho ;iaah I , nd 000nomia growth ,nd vio ll -being of the cilizens all the (lity. H. T1 a aanslrwc'Iian , nd open, tion of tl a Impra`loments puiisuant to tt is Agreement and 1he fulfillment geneiially of this Agraement ano in the `iital and bast inleneats of tho City and the health, sallety, and wellane of its resident) and in aaaord with the piiaidsions of applicable fedenal, 9t, to and local law. N UW'HHDREHORE the Alga nay and the Par ioinanil heneby agree w follows: 100. INTRODUCTORY HACIVISIONS lltlll. Definitions. The following terms shall 1,ve the nospective nivnings ,ssionod to them in this Section 101 unless the context in which thall , na used cle, rly nequiuo s olherwiise : rJOC3 00129: 194n011/01:1994011(1 "Aglency" means the c an Juan Clapistnano Clammunity Rcdcvelopment Agencil, a public body, corpora to and g o 1 it i c, exa na h iri € l a i is rnmo n to 111u nctions and powa n9 and a nganiza d and existing undo n Cha pta r 2 oil 1I he Community Reda va la pm a nt Law, and any assignee of or s ucco s sou to its nights, powers and msponsibilities. "AAlreamemsl" means this Owner Aar icipation Agneement by and belwaan tl a AgenGII and tl a Aartiaipa nt. "Canlifiaa,le of Fina] InNlec lion" shall moan the certificate issued b,j tl a official in tl a City's Huilding hepar niarit witl authouitil oven sual issuance subsaquant to the approval ail tl c completion oil 1I a building cone and shell I it ami and all city departments acid public agenaias with rights to condition andbn inspect the Impnovements, including witl a ut lirn ilation the Clitil's Communitil Deva lopmenl Llepar merit, the Plublic Wlorl s Ila partment, 1I c Utility Department, da Orange Clounty Fine Aulhorily, the sanitalion distuial, and the Orange County Sl ariilfls Ilcpar niant, which aartifioate shall aiiidenae tha Aartioipanl's satisfactorIl completion oil the building cone arid shell por ion allhe Improiianerrls. "City" mo a ri s the Clity of San Juan Clapisinano, a Clalifa rnia municipal corponal ion. "Claims" is defrnad in Section 110.3 l areal. "Communitj Aecevnlapmnrul llaixi" means Clalifornia Health and Safety Coda Soatians 33000, et siiq., as the same now exists on may heneafler be amended. "C'OM&Udifln Ainaincingj" maans da conventional finanaing 1a be obtained by the Plarlicipanl from an institutional iendan fan the construction and completion oil the Pnoject 9ubiact to tha conditions sat Jor 1 in Seation 410 haneal. "Conshivatinn Mnauicingl Cllosing DOW' shall mean the dale of tIc olosing of the Clonstiniction Financing obtained by do Paricipant in ordan to conitnuat tIe Impna`iamanls on the Site in aaaardanae with the pnaiiisions of Section 410 of this Agreement. "Covenana"is defrnad in Seclian 107. "Cbvenanas Boan" is defined in' aciJon 301. "CbuntA"shalI mean the Clounty a1 Onange. "Da le of j1his Ag jreiimiing" ma a n s "Deea of 711rua. I" ma a ns the deo (l oil t:nist which so aura s the Aartio ipa nt's a bligation unden the Rion issoiry Nole in substantially the ilorra atlaohad henelo as Atlaalniant No. 8 and incorponaled henein by nefe ua nce. "Dej4WIII" means tIa ilailuue oil a parly to periform any action or covenant nequircd by this Agueemeni within the time pe:uiads pnovided herein fallowing notice and opportunity to acre, as set forth in Section 701 hereof. "Disburaament Dani" is defined in Seclion 303 of this Agraemerr . Docs OC/ l29:194)11a/0; 2199-401d "Entihlemenjlai" mean, (AG 06-12 ti a "Paseo Do Vendugo" pno'cct appra)iad i `I Resolution No. 08-04-19-03. "BmiironmentdA llawi" moans any state on local law, statute, ordinance or regulallion per aining to environmental nag ulatia n, as nta urination on cleanup of awl H aaardous Materia h, including, without limilation: (i; Sections 25115, 23117, 2!122.7 o:i 21140 of the Caliilorniia Health and Safely Code, Divi; ion 20, CII aplcr 11.9 (IHaaardaus Wa:1c Control Law,, (ii) Section 25316 of tt a California Hoa ld and Safety Cla da, Divi: ion 20, Clhapien IS (CarTlenlon-Pees ley-Tannan Hazandou: Sut slance Aacourrl Aat), (iii; Section 25501 ail the California Heallf and Safely Clode, Division 20, Chapter 6.95 (Hazardous MWeiiials Relcaia Re: pons@ Plan: and lmiantar)l;, liv; Section 25281 of 11 a California Health and Sailely Clode, Lliiii:ion 20, Clhapten 6.7 (tIndargnound Stonage of Hazandou9 Slut,'lances , (Iv' Artiole 9 an Ar isle 1 1 of 71i-lle 22 of tho Clalifarriia Adminislralive Coda, Eli, iii ion 4, Chapler 20, (vi; 91ooion 31 1 of Ihe Clean Alatar Aat (33 U.S.C. SociJon 1111), (viii) Section 1004 of to Ra s ou: is a Clan serial ion and Reca l ism Acl, 42 tJ .S.CI. Sla cI ions 6901 at seq. (42 tJ .S.CI. Slocion d9a1), (viii; Seclion 101 of the Clorngn@hansive E n`iinonmenlal Rospon: a, Clompen: atiati and Liability Act, 42 U.S.C]. Sections 9601 atieq., o i (ix; any state an federal lien or"superlien" law, an)l environments 1 aloanup statute o:i negulation, o:i any permit, approval, aullorizalian, liconse, variance on parrris: ion required by any gaiiernmental awl anity having.u:iisdiclion. "Goveainmantall Requimmants" moans all valid and ongorceable lawn, ordinances, statutes, codes, iiulas, :iogule lions, ordon: and dearocs of the United Stales, the State, the Claunty, the City or any olhen political subdivision in which -Ihe Site is laaa'led, and oil any other political subdivision, alcncy or in: Inumeniality exenci: ing juiiisdiclion oveii the Agency, the Participant on d a Site, including, wi'Ihoul limitalian, all applicable state labon standards, the Ci'Iy coning and development standards, building, plumbing, meahanical and eleclnical code:, and all oil or provision of the (lily Municipal Code, and all applicable disabled and ha ndioapped as a es: no quinement: , including without limilation (1110 the axtanl applicat le) the Amenican: With Disat ililie: Aot, 42 U.S.CI, Secliarn 12101, at jeq., Cla ve n ima n I Code Section *I as , et .req., Cla ) ie rnme n t Code Section 1 1119, et miq., and 11e LI nruih Civil Rights Plat, Clivil Clode Section 51, etjeq. AWI raspeal to 11e aansiIructian of the lmpraliarnenls, Parlicipanl and its aanlnaolan: and ubconInaaIan: shall pail prevailing via ges and employ aggnentice s in compliance wiilh IJabor Clode Section 177x , et saq., and shall l a re: pa m ible Jim the l eeping all all ra cords nequined g im uarrl to 11abor Clode Seel ion 1776, complying viith Ihe maximum houns nequirements of Lat a o (to da Socliaris 1810 ilhra ugf 1819, and aomgl)ling viiih all negulalions and s laluiory nequinemenils pertaining lherelo. Such nequiremenli ane set fonh in graa-Ier detail in Attaat mant No. d atlaol ad h@neto and incorporated henein by rafan@nae. Upon the periodic request all Ito Ag@nay, the Parlicipanl shall can if)l to tt o X18 ancy it a l i1 is in @a mplianaa with :lhe! o nequinemenl:. Parti@ ipan i !fall indemnify, pnolact, dagend and told harrHos: the Agency and it: officers, arnployees, contractors and agents, wiiIh counsel nea: atiabl`l aaceplable 1Io Agency, from and again: t any and all lass, liability, daniage, claim, cost, expen!e and/on "increased aosl:" (including reasonable atiorrieys feel, @Olin and litigation cost:, and ileo, all a)ipert wilnasses' vitiat, in connaalian with the davalopmew, con tnuclion, and/on aponation of If a Impnovemernls, ino luding, wkhou'I limilation, any and all put lie wool s {las defined by applicable law;, result: on anises in any way from any of the hollowing: (1; It c noncompliance ty Paricipant of an`l applicable local, state and/an federal law, including, wi-Ihoul limitation, any applicat la lledanal and/on slate labsn law: (!including, wilhoul limi'lallion, illapplical lo, the requinement 10 pay slate pnevailing wager; 1121 the implementalion of Section 1781 of 1he !labor Code, w the same ma)l be amended from time 1a time, on any othen similar lava; andAon 111) failure ty Partiaipant -Io provide any nequined d6closune an identification a: nequirad by Labon Clode Sac lion oacsacrt: 9: 11411 16A 2129 9—a 8c1 1781, as the sa me marl be man clad fhiom time to lints, an any o-lhen similar law. 11 is agreed by 'Ihe par ies 1hal, in aonneclion witl Ihe danalallmant oil Ihe lmpnovemenls, including, wilhoul limiilalion, any and , II public works ilas da fined by applic, 1 la la wl , Pari icipant sh, 11 be, n all ssisks a it payment on non-naymcnI of prevailing wagcs under Californsia law and/or the imptemenlalion all Labor Clode Seclion 1781, as tho same mail ba amended from time to lime, and/on any oilher similar law. "lnciicasad oosls," as usad t grain, shall have'Ihe meaning asaribocl to i'I in llabor Clode Seclion 1781, as Ihe same ma y t c amended from -I inn o to I ime. The font goinh inda rn nily s l a 11 survive terminal ion of Vhis Agraamenl nd al a II conlinue aftan complelion all Ila aans'Irua lion and dcvelopmenl all II a Impnovemeni.i l JI the P, rlicipant. "hazamous Mateudals" means any .rest stance, matonial or was Ia which is or becomes Anion 10 IN Closing ragula led by any local ganarnment, l aullhority, Il a Sole of GI liilorniia or the Unitad fl t, tos Government, ins lading, bul not limilled to, any ma Tari, I or sulI nae which is +ji`, defined as a "hazardous wa site," "extremely hazardous walla," on "reslricled hazandow waste" under Sac tians 25115, 29111 or 21122.1, or th,led nunsuarnl to Section 25140 of the Califond, Hcallh nd S, flety Clacla, L1063ian 10, (Il aplar 6.1 iflaz� ndous Alasta Clanlnol U vii), Ilii) defined as, "hazandous substa nae" under Sealion IV ltl of Ila Clalifa nnia He, lth and Safety Clode, Division 20, Clhapter (1.8 (Clarponlor-Prasley-7 anner Hazandous 9ubsilancs Account Aat), IJiii) defined as a "hazandow materia 1," "l azandow substance," or "hazandous waste" under Seclion 25501 a fl Ihe (laliBorriia Hey Itt and Safat;l Clode, Division 10, Clhapler 6.95 fazandous Malenials Release Response Plans and lnventor)l , (iv: definad as a "I aaardous substanaa" under 9action 29281 aIIhe Claliibrriia Health and Sanely Clacla, Diiiisian 74, Clhap'ler t1.1 (JUndanground Storage of Hazandous Subslancesl, (lv; peilralourn, (vi; fniabla asbasilos, (vii: pol;lchloninatod biphenyls, (viii) listed unden Aricle 9 or clafinecl as "hazandous" or "axtnemalll l aaandaus" pursuant to Ar ialc 11 all? itle 22 of tl a Clali(irnia Administrative Coda, DivisCh ion 4, aptan 20, (ix) desigaatad as "hazardous subst,naes" punsuant to Seation ] 11 of the Clean Water Alal 1133 U.S.G. Section 1111), fin) defined as a "hazandous wasile" pulrsuanl to Section 1004 afl the Resourae Clonservation and Reaa)icril Aot, 42 U.S.C. Sections 6901 at sieq. +12 U .9 .CI. Section 69 01) on gni' defined as "hazardous substa nc es" nunsuanl to 9 a a'I is n 10 1 o fl Ihe Clampnehansive Environmental Response, Clomllansation and Eliatility Aat, 42 U.S.C. Seations 9 (10 1, a I sEu1. "Improi cements" shall mean 1 he improvememl s lo be const ruatad and a ll a ra led t )I Par icipant upon the S i l e in ace a ndano c wit h tl a Enl it lemenl s. "Memorandum of AAreumesnt" mems 'Ihe memorandum attached haneto as Attachment No. 5 and incotT oral c d hero in t i l this neilerence v+sl is h shall be rc corded upon a ppra l is 1 1 a na o fl by iI he par ies. "QjerailinAl Cbvenaml" is defined in Seclion 502. "CilerailinAl Pej&6 " is defined in Seclion 502. "AenimMIed Transfesi" is defined in Sect ion 103. "Arojeat" shall mean davclonrnanl and aponation of ti o lmpralsornants by d o Pari icipant on II a Site pursuant 'lo this Agreement. "Arojeat Area" means Ihe geognaphic anoa desonibed as 'Ihe Projoat Anea in tt a Rede)salanmant Plan. 4 DOCSOC/1:9719 4u16/[ 2, 29 9-4 C H "Pramikoryl Alaihi" means II c Promissory Node in subslaniially 'II c dorm amc I ed I erc to as Atachmant No. 7 and inoorponaled hanain by refeiience. "Aeaevalklpmw rl Plan" means the redevelopment plan entitled 'II c Clcnlral Redavelopmenl Projaa I annnovad atld adapted I `I Clydinanae No. 488, dated July 12, 1983, as amended t y Clydinafiae No. 509 daled May 19, V V, as amended by Clmdinanca No. V da I ed July 16, 1983, am a m a nded by Omdinance No. 982 dated August 19, 19811, as amended by Clydinanae No. 71(l daled December 6, 1994, as a ma nded by Ordina t1a a 1` a. 881 daled July 19, 2003, as amended I y Ondina nce No. 923 daled V ay 11, 2007, as amended by Clndinanae No. 932 da led December 18, 300', as i-1 may t e furi hen amended thio rn time to 1 ime. "Aeihiase oj ConstUivation Oovenanls" rncans it document which viidence.i Partiaipanl's salhilaotory complelion of It a construclion of It a Impnovemenls, as sell fa r1h in Seclion 412 hereof, in I a form ofAlttachmen•I No. 4 henello which is inacrplonaled herein by refercnce. "R-hea u le of Peirformance" means the t oartain Schedule of Panfor iiatlae at ached hereto am Alltachmew No. I and inaorpotialed herein by rafanatlae, which schadt to, subject to It a nrovisians of Sealiatl 601 of This Agmemenl sets oul d a dales andllon lime peniads by which cerain oblige lions sal lorh in chis Agiieemenl must be accomplished. Ile Soledule olPe4mimance h subjcc�l la revision liom dime to lime as mutually agreed upon in writing IQ Iween the Partiaipant and the Agency's 13xecutive Dinecilor, and -Ihe Agency's Hxecu'live Ilineolon i<, eu-11orized on behalf al Ile Agency Ia a € nae to make suc l revisions as he or she deems peas onably ne a ess amy. II is undo nito a d lhw the Schecltila of Perfarmiance is subjeal -lo all al Ite learns and conditions scl forth in 1he Icxl of lhis Algneernanl. The summaily of Ito items of performance in -Ihe Schedule all Petiformanac is fiat inlendad la supetulcde or modify Ile more complete dascriplion in the lex1; in the evew of any inaonsislenay belwean ilhe Saledule oil Parfornnance and the lex-1 of lhis Agneemenl, Ile text shall gova M. "Side" means 11 a1 acrtain real pro Hcrty gene nally local acl at 26755 Verduga Slneel, San Jluan Clapistrano, California I1(1' 1 and shown on the Sill V ap. "Side Legal Deaaripplion" means the &i a nipl ion al the Si 1 e atlas t ed ha melo as At achmenl No. 2 and ina a moral ed henein by refs ra nc e. "Side Mal I" means l he map of the Site atl as 1 c d t c re 1 a as Al l achmo nl l o. I and incorploi ia'I ed henein by mefe ra nc e. 1117. Representations and Warranilias. 102.1 Age n ey Ac pmemc n I all ion si. Agena y nepties c ni s and wa reanl s to Par ici pant -I hal the Agency is a public body, carnoralle and politia, existing punsua tit a It a Community Rodavolopmcnl Law, which ham bean atilt amized to Transact businvs i pursuant Flo action al the Cily. Performance and (Whiary of This Agraemenl t `I Agena)l has been full)l aulhorized t y all req t isila acliow on the par of Agency. 11 is nennesenlalion shall be deemed 10 be an ongoinl neptiesentail ion and warranty. The Agenay shall advise the Pah icipanl in writing if theme is any change pertaining 1lo any malleus se l for h or rdiilenencod t erein. 102.2 Havtiaipanil AepnesaMail ions. The Parlicipanl represents and warrants to t1 e Agency as follows: 5 DOCSOC/17971'. 4ii16/Q 2721 5-008(1 a. Auill unity. `Hhe Par iainanl is duly estat lished and in good slanding unde n the lads of 'Ihe Sia le of California and has dull aulhonizad, executed and delivered this Agneeme nt and, exaopl as set farlh in this Agneamant, any and all oil er agneemonts and (laaumen'Is requiiied to to axacu'led and delivered t)l the Participant in order to aarry out, give affect ta, and aansumma le'lhe 1Iransaations conlemplaled by lhia Alnn(iomenl. b. No Conflia I. Tha Pa Ti icipant does not t a ve any material coni ingenl obi igailions or any material aanInaaluaI agnea manIs which have not been full)l disclose d in a separa'le wnilinl to Ihe All a n a y prior Io'lhe Dale of 11 his Agreeme nt wl ial could male rially adversely aifco 'I he abili'ly of the Participant to carr -I oul its oblil atians as sot iortl in this Algre e meal. a. No Legal Hnoceedings. 'then are no malenial legal pnoceaclinl s pending or, to tl a Parl icipanl's best knowla dge , the na ane no le gal pnoa(edings threatened, to which the Partiaipant is ar may be made a par )I an to which 1Ihe Site is o i may t e come subie a1, whiah could ma'leniallil adversely affecl the ability oftl a I arliaipant to aarry out its obligations haneundor. d. 1\ o Ha nti4ipanl Bankrupt4y. `]Iherc is no action an le € al on administrra iNQ nroaeeding vending an, to ll e 1 articipant's bas'I I nawladge, 'Ihre alened, looking lawan(I tie dissolution an liquidailion of Ile Pariaipanl or any legal antily whial comprise:1 the Participant. C. Hxpe nience s nd Qualifications. The Parl iciparil nepres c nl s to tha Algency ilhal 'Ihe Participant has 1l a experience and qualificaliom naaessar3 to pe ntm as Partiaipant punsuanl 1a d is Agro emenl. f. Hazaiidous Materials. Exacp'I as to the Phase 1 Summary atlachQd terata as Atlachmenl No.9 and inaorpanaled herein by relkunenao which discloses tla results of a Phase 1 Hnilinonmenlal Assessmenl dated .lune 7, 2001'1, ne itl or Par icipant nor, to the bes'I of Parlicipanl's actual knowledge, any nnalrious owner, Tenant, ocaupanl, or user of tie Sita used, ganeratad, released, discharged, stand, or disposed of any Hazardous Matanials on, undfun, in, or at aut the Sitc, an'Iranspored any Hazardous Na'lenials 'lo on from the 9il4i in violalian oil applicable Bnvironmenta I IJaw. € . Complianc4 willh Environmental IIaw,lGovernmental 114quirements. 1a the ball of Pailicipanl's knowledge, tho Site and Ihe priesenI and proposed use oll the Site ane vol in vista liar of an) 1 applicable finvironmenial Haw on Governmental Ilfequiromenls, axaep'I as has been fully disalased in a sepana'le wniiling Ito the Aliency prior 1a 'Ihe Date of this Agneema nt. Baal of 1he foregoing itams a. to g., inclusive shall to daemed to be an ongoing irepiesfuntation and warranty. "Ihe Pariaiganl shall advise tho Agency in wriling iil there is any change nerta in ing to any matte ns set north on referenced in the ilore € oinl items a. log., inclusiva. 14 3. H1u I ibi-lia n All s incl Ohange in Ownersl ip, Ma nagemenil and Ck n lrol of Ha uticipant. The qua lificalions and idenli6es oil the Par icipanil, inaluding Hria Allman, Ihe Nanaginl Nembe:i of Pariaipan'I, ane of pariiculaii conaertu to the Agency. II is baaause of Ihoso qualifiaa'lions and identilies thattha A l ency has en'lened inla this Agieemeni willh'Ihe Par iainanl. No volunlarl or imialunlary suaaessor in inlc:resl of Ihe Par iaipan'1 shall acqui:rc any into nos'1 in the Site o:i the Project nor any riit its o:i pawe:is under This Agreemant amiepl as axprassly sell forth herein. 6 DOCSOC/ 1: 9:194111 6/C 2:219-11(8(1 During the Operating Peniod, tl c Participant shall not assign an tnansien, all or anal part of this Agneement or dia Site, oii any ponion(s theiieof, or intoresti s' thenein, on any nights s; hereundon without the prior wnitton approval of the Agency's Hxacutive Dineatan. Assignments for financing pugloses shall be appnaricd 131 the Agency's ExacuI)ia Dinaatar in accordance with this Section 103 and with the requircments oil Section 409 of this Agreement. Pnior to any assignment which noquines Agenall'i Exaauliiia Diraclor appnanal heneunden being considered Ilon approval, the Par Wipaw shall be raquirad to deliver la the Agency's Hxocu-tNQ Dinac:lor the ilorrn oila proposed wnitlen assignmonl and assumption al noon ant in whial the assignee would expressly agnee 'lo assume all rights and obligations of the Partiaigant unden tl is A graamcn'I which anise aflar It a effective data of 11 a assignment, and in which assignment and assumption agncement the assignee would agree to assume on Partiaipant would expnessly ncmain rosponiible ioii all penformance of the Par ioigant which anase prion to 11 a alfeclive date of the assignment. 71 a assignment and assumption agrcemeni shall ba in a form neasonably sailisilaclory to the Agena3l's legal counsel and Agency's legal oaunsel shall hada appiia)iad Ile a:isignmanl and assumption agraemenl pnior to its exeaution and pniar to it becoming ef1hativa. No laton than tla dale the assignrnant lecomei ofleativa, Pa>licipanl and the assignee shall dalivan to the Agency a full)l axeculed copy oil Ila assignment and assumption agrearnant. t otwithstanding the ilmegoing, neilf en ti i lander approved by the Agency gunsuanl to Section 410 al this Agnaemeni nor its suacessons or assigns shall be ncquirod to execute and deliver an assignment and assumption agneemenl and the nights all such lendan and its sucaessons and assigns shall be as sal farlh in Section 410 oil this A l noon ani. No -vitt standing any olf ar provision of This Agreement to tl a oo n Inary, Agency approval of an assignment of l hi s Agnea ma n t oil 1 he Site on any into re sl l herein shall not be nequ fined in connea tion with any of the follavaing (each a "Perniittod Tnanslan",: i) Any tnansfors in wl iat the Parlicipani ne'lains a minimum of fifty-one percent (51"Xi) oil the owns nit ip and retains complele mana g a mend and do a is ion-ni a I in aonInot; (ii; 11nansilens resulting 111nom -Ihe doa It or mental or lit 116cal incapacity of an individual; (iii The giianling allemponary or panmanont aasemints or pormiis to facilila-le the devo lopme n t oil 1I he Prq jo ct; (iv; Me leasing oil separate spaces in the building in the normal course oil business punsuanl to leases filo commence no eanlien than Par iciganl's completion of the building cone and if all as evidenced by 11 a issuance of It a Civifioale of I inal Imlaclian - Building Clore and St all; (v; Transfers oil assignments in tnusl fon the benefit al a spousc, childnan, on grandchildnon; Qvil A gale al the Sita al foreolosura (os a conveyanaa Ileroaf in lieu of a foneo los ura) pursuant to a loneclosune lhencof by a lenden approved by the Agency in accordance with Section 410 of this Agroement; DOCSOCn ; 9; I Il 4v t Gia z; � 99 -Oa E r 100. CONDI71ION OR THE SITE. 201. Hazardous Maleriah. Parl icipani shall not cause or p( rmi I tt a Una sena (, Ilse generation, net( ase, dischawge, slanaga, on disposal of any Hazardous N alarials on, und(n, in, an abaut, on Ila Inansporta lion of any Hazardous Mataniab to on fnom, the Sit( in violation of applicable Ilnvinonmental Ilaw. 101. Indemnity. Participant agrats to and heweby does indernniily, defend and hold Agena1I and the Cily and II ain wt sp( a Blit allfiaers, employees a nd , gents hamilt ss idiom and againm any claim, action, suit, pnocatding, loss, aasl, d,rn,ge, liabihily, dafici(nay, fins, p(rlalty, punilive damag( , on expense linaluding, wilhoul limit, lion, , ttorneys' fees) (Ihelleinaflell collectively the "(II, ims"), resulling ih(orn, aiiising out all, or t as(d upon 11i) tl a pees( nae, cele, se, use, genellalIion, disc h, ng(, stowage, or disposf I of rill Haat rda us Materials on, unden, in, or about, on tic Intisportalian of any such m0tri,19 to or fnom, th( Site in violation all rppliaable Hnviwanrntnlzl II, vv, vat eneven discovered ow {Iii tit 14olation, ow., Ileged via h ion, oil any statute, ordinance, ondew, rule, n(gulation, parmi'I, judgmtni, or liotnse nelating to the use, genenalion, iielease, disatargt, slonage, disposal, on transportation of Hazardous Matenials on, under, in, ow aboul, to on hiom,1I t Site whenev( n (lisaovened. Ahis ind( rnnity shall include, wilt cut limitation, ar 11 Claims flow p( nsan, l injury includir g sickness, dis( ase or doailh, tangit It a intangible pro pt rly damage, as rnpt nsation or ]a siI yr ges, business income, profits or other ( oonomia loss, da mage to the nwur, I resauned or th( environment, nuisance, pollution, aalit, rr in, tion, leak, spill, vele, se, or others adli(rse aflleot on the tnvironment. Mill indemnity shall nol include aryl (Il, im dirtctly r( suiting fifer ,arising out all, ou t a s(d upon the nt g lig(nt cf iviti( s of Agency, Clity, on any oft thein a flfrcens, employe( s, or agents. 300. FINAN(IIAL HROVISIONS 301. (lovananlls Moan. In aonsidenalion fon the Cov( nants hereunder, which (t xcept as to the Ilaed of Tlnusl which st a I1 I a subondina'le as t t rains ft(n provided , shall be a non -soba ndinale lien on d t Site p6c r ,rid sups rion to the finanaing approved by tie Agency pursuant to Seation 410 1 (neoll, and sut j(a l la th( terrria , r d conditions set ford h(n( in, the Agt nay hent by agrees to loan the Pari icipanil the sum of Nine H undned Fiilty thousand Doll, rs +jS 990,4 0 0) Q"Clovenant Go n s idenal ion"). 302. Condition of I isbunsemenll. The AIgt ncy if ,11 disburse the (lov( nanl (lansidenatic a, as hollows: Miles tonesi Advanat fan Plans, nd (lonstruclion Docum( uts Huilding Perry it Issuanc( Foundation Inspecl ion completion Rooil Sheathing Inspection Fina I Fnaming/Rough Mechanic, I Hleclrical, Plumt ing Inspeation Fin, I Dryvia Il Inspaction Carlifiaa-Ie of Clccupana11 I CICSCIC/ 17 931! 411W(232! 9-0(8(I Disbursement Amount $150,000.00 $100,000.00 9 100,000.00 9 100,00 0 fl d 9300,000.00 91 (I'M.44 ', 1(10,000.00 400. DEVI IJOPN DNT OH TIHE DHNEHOHMWI T PAACIEL. 401. Development oil 114 SPe by Parlicipant. 'Ilt c 9 ite shall be developed in aeaordance with the f ntitlamants. 447. Coil of Consilnuclion. 'llhe Parlicipant, al the Participant's gala cost and expense, a l a ll o a n s i rw I and a c rn pla to a n caw a the cone truicl ion and completion of all of the 1 mpra) is me nts to be aanslnicled by the Parlicipant pun.ivanl 'lo 'lhis A18n4iamant, including any and all offita and on -side public improvarnanls as may be requircid by It a Enlillemenls. 403. Commencemenil and Complelion of Construcilion. The Participant hercby covenants and agneas to picrnptly begin and lheneafter diligently pro(ced la completion Ilc conatiuclion oftha Impic%menls and the davalapmanl ollhe Site in confarrrianco with the Schodule of Pa aformanae. 404. (lily and Other Governmental Agency Penmhs. He fa re commenca rn a nt of consliuclion oil the Irnpnovemonts, the Participant shall, al i1; own expense, sccuie of cause to be seauned any and all parmiLi whish may be lawfull)l iequiiad t �1 the (lily of any olhei 8a`iarnmarnta 1 agency ailfected by such oonslam lion, including wilhoul limitation building perrmita, and grading and cncioachmenl permits. 11 is undea,itood that the Par iaipan'l is oblija led to pay all nacessaryl fees and to timely sut mit to the (lily final diawings wilh fins I corse lions to ob'lain sual parmiti. 405. Bodily Injury and Hnoperty Damage Insunanae. Ilhe Par iaipanl shall llnoleet, dAnd, indemnify, assume all responsii ilily for and held harmless -Ihe Agency and tha Clily and It c it aloe -live and appointive boand;, officans, boaids, agents and amplayecs, from any and all Claims, v+il iah may be Caused by any of ilhe Paricipant's a( liirilie: undei rlhis Agne4mon1, ra4ardlass of vil a II or such aclivNa,, or peaformanae it creof be by -Ihe Participant of anyone dingo Ily of incline( tly amployed of conlraa led Witt by 1Ihe Partioipanl and regardless of whelhan sual damalfe shall accrue of t c discovered Wane or after termination of lhis Agreemenl. From the dale of the Construction Financing Closing Data lhroullt Ihe dale -Ihe Agency issues the Release of (lanvruation (lavananls ibi the Impra)iamanls pursuant to 9cclion 412 t aicin, the Parlicipanl shall: {1i) obtain and maimlain a policy of commeicial general liabili-ly insurance, vihieh .hall inoludo blankat conlraclual coverage, and shall lave limits al net less lhan Two Million Dollars Q$2,000,000) pan aacurran(e, and if a policy farm will a general aggregate lirnit is used or pnovided the aggragale limit shall be nal less lhan lvuee II a pen oacurronee limil, vihieh policy(ls) shall proteat the Participant, 'Ihe Clity, and the Ag(in(y horn claims for such damages, and which policy ;it a 11 be issued by an "AA 1" or beth o raved insurance carrier as sled by A.M. 134191 Clompany, and shall praiiide all covanagis on an aecurranae basis; and Qii) obtain and maintain of as use to be ob'lained and mainlained t the ganaral aarntraoton general liabilkly in sura nce. The Partiaipanl shall furnish an endoisemant(li) of insurance counlersigned by an authorised agent al the insurance carrier an a ilorrni of the in; unam c ca mien evidene ing and/or efi>li a ling the requirernanls hunein andon tho changes 10 the Participant's policy to eilfecl such conibrmiily and sa Ring forth the gancral provisions of Ihe insuranae coverage and an endorsement Thal itall name Ihe City and the Agency and lheir icspaaliiia officer;, toar(Is, agents, and employees as addilional insureds under the paliay wilh respacil to this Prajcc'l and itis Agnearnonl wi'lh the Agency. It endors4 meat by Ihe inslinanac carni( r,, hall contain a statarnanl a 1 obligation on II a part a 11 the issuing agenl or carriar 'lo nolify the City and the Agency of any mwerial reduction, cancellation, or non- renewal of the ( overage al leav Chir y X10, days in adiianee of the (filective dat( al any such ma'lerial 9 DOCSOUK 97 19 411161( 2129 4-0(8(l a I a nge, or non -renewal. No l lass i han fifiea r (115' days puia r to I I c c xpirs tion dal a of any po I icy a fl insunar ae ragluined by -I his Secil ion 405, Participant it a ll aause to be delivened'lo Algcncy a binders an oartifiaale all insurance will iiesgoO to each renewal or new polio31, beaning a notation evidencing payment of the premium thaneflor, an Wit er proof oil payment naasonably satisfactory to if c Agency. In each instanoo all 11 c gnovimion of insurance, cer ified duplicate capias ofl the policy]s; an renewal policy{ls;, as appliaablc, shall be delivered to 1Ihe Agar ay's Exaauliva Dinaa Ian wilhin thirty 1130 dads of It c dale of suah poIic,I(lm)• The Par icipatrl shall alio furnish on cause to be fun ished to iIhe Agene �I cvidence sWisilactor) t o l t c A gency 1 hal it and any cont nacl on vaith who m it has a on I naa I e d flon 'I he penfa rrn ana a o I wonk on 'I he Site on olhemiima punsuaW 'lo t1 is Agreement cariiies via nkanm' compat sal ion insurance as nequincd by law. 'Ilhe Agency tcrcby dolagales 'lo the Agena)l's Elxeculive Diraclor, willh and Through consultation and advice from the Agencil'm and Clitil'm lagal aaunsel and nisl managcr, the authonity to a onsiden, and approve or disapprove, vinil-len nequest(Is) from the Participant o o nc ern it g any proposed modificalion]s; to the indemnifioatian and/or insunanoc nequincmeWs of This Algnearnanl. Pnovided, t a vnic ver, by such da la g a'I is r the Ago r a y a xpness ly nesenia s to itself and the Agena l l's Elxeauliva Dineatan i$e mala and absoluile disonation to approve on disapprove any such rnodificationlls; naquasled by'Ihe Participar t. Unless and until at �l such ragluesled modifioalion{s} is approved in wniting by the Agency's flxeculive Dircctor, in his/hen sole and absolute discretion, the Participant remains obligated ha neunda n at d shall comply and continue to comply wi'l l 11 a it do mnit` l and it surance nequinemenils sel forth in ilhis Agneemar t. 406. Rights o! Access. !~or the purposc of assurir g compliance wit/ It is Agneament, neprescntalives of the Agency and the (lily shall have Ito right oil access to the Site and Imprc)iamanls, mithout charges or foes, a'I nonmal cans'Irualion Nouns dulling the period ofl oar sllrualiar for the purploses oil tl is Algnecmcnl, including, but rat limitad lo, the it spection of the wank being panilom ad in constnucting It a Impnovemenls, pnovidcd that they comply wilt all of the Pari icipanil's and i1he Participant's general act Inaato n's sailety Pules. The Agenc, l shall indc mniily, dailend, at d I a Id iN Par icipanl harmless from any claims, lasses, liabilities, and damages anising out oil the negligent activilie;i aillhe Agar cy and (lily as sat fort it this' action 406. The Par icipanil and 1Ihe Agency agree 'lo cooperate in placing and maintaining on the Si'le one sig r indicating the nespoctive par s of t1 a Participant and the Agar ay in the Projecl. The costs all the sigt a d its installation st all be ba me 1)l the Participant. (lovannmenlal Requiramenlls. Participant shall carrel out the des igr and conslruation and operation of tha Impnovements in o a n florrr it) l vaith all Cla riamma t to 1 hlequirc mems. 407. Nondiscrimina lion During (lonsttivation. The Participart, fan itself and its mua a es cors at d assigns, a g no c s that it It c const nua tion all the Irn pnovements p,ua v idc d fa n it 1 t is Agneemenl, the Participant will not disaniminale agains I at `l arm ployao an applicant fan employment because oil race, colon, anead, naligion, age, seri, rnanilal slalus, physical on mental disal ilily or medical condil ion, nal ional onig it ananaasID. 408. Taxes, Aa sessments, Hna umbiiancem and Liens. `1 I c Par io igarrl ml a 11 pay Vtt an due all heal estate taxes at d a sscssmants on the c ite. Prion to finst Sala oll the Pnojeot Ill It a Pa rtio ipa r t, the Partia ipa n t s I a ll not pla cc on allow to 1 e pla o ed a r the Si a a n any part i hereof a ny rol DCIC SCICI 12 91 1 q A 11 l 6/(27 2q 5 -0(8 a mor gage, tnust deed, encumirance or lien otheiu than as axpressly allowe(I by tl is Agreement. The Par is ipant stall n( rn ova or have removed any levy an a tt as hma nl made on tic Sita or any pa rl thereof, on assuno iIhe satisiaation Iheneof within a uemonable time but in any event pnior to a sale thelieunden. No:Erig ler( in contained shall be doomed la flnohibitl the Participant ibiom aonlesting the validily or amount of any tax assessment, encumbrance on lien, non to limit the remedies available to the Par iaill anl in nospect Iheneto. 409. Submission of Evidence of Him naing Commi,lmi nis and Doan Closing. Within the time established th(naflon in tic Schadula of Penformanae, the Partiaipant stall exe acise reasonat l( diligonoe in an efflor to of taitl and submit to th( Algancy evidenoo ti al tha Participant has obtained fllrtri and binding commitments floe fllnanaing lion the purFose of securing loam of funds ilo be used Jon financing if ( dinect and indirect costs of aaquining d a Side (including refinancing tI a existing loan(js); secuned by 1l a Side, the constnuction oil tho Impnovemenls, and all oilhen development costs relating A the Pnoject (including, fan example, affsile improvements, da`ialapmenl and building fees, anchiilectunal angineening and legal fees, financing costs, and tenant impnovement s), and a p era tia n o1 the Impra `ia me n s a filen completion. 7t a Ageno y's Dxo a uti` is I]inaalan afleu review by the Agenay's economic aonsuluanl and legal counsel stall apprav( or disappnove such evidence oil finanaing commitments within the time established in the Schedule of Penfornnanee. Approlial stall not be unneasonably wilhheld on conditioned. 111 the Agency's Hxeautiva Dineoton shall nemonably disappnove any suah evidence of finanaing, th( Hxeautiva Elineatan shall do so by written notice to d a Parlicipant stating the reasons Ion such disappnolial and the Par iaipant shall exercise reasonable diligatlae in an effort to pnompilly o bU in and submit to tho Agency new evidence of financing. 'Rhe Agency's 11mcutive Llinaatar shall appnove on disappnove such now (videnee ofl financing in tta same manner and wilhin the same times established in this Seation 409 for the approval or (lisappra)ial a I i1e. evidenaa all financing as ini-lially submit le d to the Alganay. In ti a event, afle n the exercise of raasonat la diligence to abtain Clonstnuction Financing, Par iaipanl is unable 1a obtain ado( uat( Clonstliucling Mina nain8 Ilon the eatistrua lion and completion of the Projeal, Par iaipanl shall rneilurni the frill amount oil any Disbursemenls PartioipanI may have recaiva(I ilorn the Agency and neilhen party stall ha`ia anal ilurtt (n obligaiion undan this Agreement and this Ag ament shall immediately became null and void. The obligailions of this panagnaph shall be secured bil a dead ofl taus l wt iol will be ueconvey(d upon eithan tic i1i) n(aorda lion of the Clonsinuclion Financing on it a nepaymont of the Disbunsamenls previously mada bbl Algency. 4110. Morllgage, Dead of Tnus 1, Sale s nd L( : se -Bank Hinancing; Pill is al Holders. 410.1 Mont gaga s, Deeds oil Trust, or Sale and Ileam -Ha a k. The Partia ipa n t shall nolit the Algency in advance of atl,l mortgage, deed oil truest or sale and lease -tack finanoitig not pr(via us ly appnoved pursuant 1I o Se cit ion 410, ill the Pan icipant pra poses to a n ler into the same befor( completion oil lte aanstnielion of all of the Impra`iemanls on the Side. The words "mortgage" and "deeds of trust" a s used heneinafla r shall include sa ie and lease -back. 41111.) Holden Noi Obligaled io Consiruoi limprovimeMs. Tha Ialder all any mangage on do ed a tumt authonized by II is Algnaemenl shall not be obligated bit the pra)iisions of ti is Agreement to aonsinicil o■ complete the Impnovements or lo guananlee such aanstruicJon or a omp lel is n. Nott in Tl in ti is A l gnea me n t ;i l a 11 be deems (I to a a be a onsl rued to perry it on a utt onize nOCSOC/ 1197 1114 v 164 27 , 99 -Oa F it an) I such I alder I devote ti a Site to a r y uses on to a onstrua t any impne ua mants thereon a ti a r than those uses on impnovemenis pnovided Jim an aulhoniz d by this Algraemenl. 410.3 N atice of Default llo M ortgagee or Deed of Trust Holden; Right 110 Cune. Wlilh raspeot to any mor gage or dea(I of trust granted I ) I Par icipanl as pnovided henein, wheneven the Agena;I shall deliver any notice or damand la Participant with nospeat to at y bneaah an deilaull by the Partin ipar t heneunda11, 11 he Agency it all at the same time deliver to aach holden oil racord oil any mortgage or dea(I aflrust auilhold; ad by tt is Agneemenl a copy of such notice on damand. No r oliae of dellauhl shall be efleatiiia as to the holden unless such r atiae is given. Each such holdall shall +lit sofar as the nigl is of the Algancy ane conoarned) hada It a right, at its option, within sixty i1(10) days aflan the neaeipt of the notice, to acne an nemedy on commence to acne or nemedy any such default and to add the cast It araof to 'lhe mortgage debt and the lien of its morgage. It the a)lanl possession oil the Sita (Jon portion ilheneof) is sequined to effacluale suat aura an nemedy, the holden shall be doomed to have Timely auned or nemedied ill it commences the pnoceedings necessary to obtain possession ti aroof within sixty 1160) da,ls, diligently punsues such proceedings ilo aomplaliat , and, aitlell obiair ing possession, diiigenlly completes suat curie or nemedy. Any such holden propenly complatir8 suah imprauernarls shall to entitled, upon acnlplianae viilh Ila requinementi of actio r Z111 all this A Ig nea ma r t, to r Melea se oil Constnua tion (la `ia nants. 414.4 Failure of Holden Flo Complete Hantieipanil lmprovemenA. It any case valena, sbit)j 1160) days afllen default by the Parlicipant in oarnplation of aarstruatiar of the Impnovemenls under this A1gneamart, the holden ail any mortgage on (teed al trust araaling a lienor ancumt rar ce upon tic Site, on ar y part ilheneof t as not exercised the option to ear strual, on if it has exercised the option and has not pnocaaded diligently with ear slrua lion, the Agency may poral ase the mor gage on deed oil true l b)l gaymc nl to the I a Ida r oil the amouni of 1he ut paid mon gage or deed of trust dott, including pninaipal and inlenest and all olhen sums secured by the morgage on deed of trust. til the ownership oil the Site or any par thenal has vested in the holder, the Agency, if it so dasiras, shall be entitled to a conveyance hiom tl a i older to tt a Agency upon payment to the holder oil an amouni equal to the sum of the llollowing: a. 'Ila unpaid marlgaga on dead of twirl debt at the tirrc title became vested in It a holden (Mess all approplliale cnedils, including thosa nasuMng hiom collection and application oil rte ntals at (I athan income neaeived dunir E iloneclosune pnoceedir gs;; b. All expanses actually incunied with nespeal to loneclosuro, including neaso n a blc atl ormays' fees; Q. The net expense, if any (a)lalusive of gen( nal overhead;, it aurred by the holder as a dineat nesull olthe subsequar t mar agement of It a Sit( or p( rl thereof; d. The actual coats of any impnovements made by such holden; at (I e. An amount equivalar t to tl ( inlenest that would t ave accruled on ti e aggro gate of such amounts had all such a moun I s t ecome par ail -Ihe rr a rigage on ( la ed a l tnu s t deb.l and sual de bt t ad continued in exister ae to 'lhe dale of payment by the Agar ay. 4 l CJ Right of the Agency to Curo Mortgage or Den d of 'llnusil Ds fa uIll. In th( evenl of a mortgag( an dead of trrlsl delaull oiu t reach by the Par iaipant prion to It a completion of the constnuclion of the Impna`ie ments on any par tl ( roof and th( lailuiie of ti a t a Idar oil any mor ga ge on 12 DOCSOC/1197114v16/( 27,e119-0( 81l deed of tnust to exeociso its oltion to constnuct, the Agency may cune the default. In suaf anent, tl a Agency it all be entitled to neimt unsemenl fnom the Partiaipant oil all costa and expenses incurred I;l tf a Agancy in auning such default. 71he Agency sha11 also be entil led to a lien upon the Side to the extend of sual costs and disbursemenils. Any such lien shall be subordinate to the aaristruiaiian finano ing mor g a ges (in deads of trust. 4:10.6 Rigl I of the Agency 10 Satisfy G l on liJiens on the Si a Afteii'litle Basses. Prior to the e a n g la tion ail conslruo tion, a ri d after the Participant has had a ne a sonable time to otallenge, cure an satisfy any liens on encumbrances on the Site, 1he Agency stall haria the night to satisfy any such liens on enounit nanaes, pnovided, Ioweven, thal nothing in It is Agreemetit shall nequine the Participant to pay on make pn(i)iision for 1t o payment of any lax, assessment, lien an o ha nge, so long as the Participant in good fa it I shall o a ri to sl tt a validity or amount the ra a 1, and so long as such Way in payment shall not subject tt a Site to llorfeiture on sale, 411111. Release al Construcllioi Covenants. Prompil;l afler aomlletion of aansiruwtion oil all of the lmpnariaments required by It is Agraemernl to ba completed by the Partin iparit upon 1he Site i1which shall exclude inleuior tenant improvements, landscaping and any extanion signage), -Ihe Agency shall llunnish tf a Participant willh a Release of Clonslnuction Clovenanla upon written nequest thenefan by the Par kilant. 11he Agency shall nol unnoasanabl;l withhold issuance all such Release of Construct ion C la l is n a nt s . Such Ae leam of Clonstruction Covenants shall ba a conclui h ie detenninatian of satisfaataryl completiari of i1he oansllnuclian mquinod Ey this Agreement, and Ito Release of Clonstnuclion Covenants shall so stale. AIften mconda-lion cif such Release of ClonslruiClion Covenants any pari) tfan owning an theneaflen purafasing, leasing or olherwise acquiring any intorosil in the 91ile shall not (Ibecause of such ovingrshin, purchase, lease or acquisition, incur any obligation on liability unden lI is Agreement, relating 'lo the obliga,lion to construcl and develop the Impnovements on -Ihe Projeat. Howe`iar, such par shall be bound by the Agneement to l e Reaordad ATIleoting Real Propery, the Men Inmnurnanls, and any oilher instrument or tnansfer, or Well documents establishing covenants on the Site in accondanae will It a provisions of Itis Agreement. TI a Release of Construction Covenan Is shall be in such farm as Ia permit it to be recorded in the Recorder's Offio a a l Change Cloun ly. Iillhe Agency rents: es on fails to fumi: l a Ralaasa olConstruetion Clarienaws ilOr It a 91itf after wnitlen request fnom the Pa rtio ipa nt, If a Aganay ,if all, will iii If irty 430; days of written request therefor, pnovide the Partia ipanl with a writlan slalemarit of tf a reasons the Agency refused or !ailed to ilurnish a Release of Clanstmiclian Covenants. The statement shall aha contain 1he Agency's opinion of the acil ions the Par is ipaml must take to obtain a Release of Clonstnuction Clovenants. lithe reason fon Agena�l's ralusal 'lo furniist a Release all Clanmrmtian Clovenanls is confined to 1Ihe immediate availability all specific items or rna lariats lon'If a aomplelion of rninon finist items to the landscaping, or athon minon and t;llliaal "punchRit" items 1t at do not pnesent health or sailety concerns, Ila Agency shall issue its Release oil Comtnuotion (lalienants upon the Pariciparnl's posting witt the Agency all a I and, or other secunity reasonably satisfactorNI to II a Agency, in an amount representing the fain value of tf c work not yet completed. If the AIgenc y shall have ilailed to pra)ii(la the Releasa of Constnuclion Covenants an a writleri statement al1Ihe reason: lon rellusing or failing to pra,iids such documernl Witt in said thiry 410) clay period, the Par iaillant shall be conclwinal)l deemed entitled to sual Release of Construclion (lalianants. Such Ralaasa oil Constnuclion Covenant! shall not constiluile evidence all compliance with or satislaatian of anal obligation oil tf a Pan icipant to any holder of anal mor gage, ar any insurer of a 13 DOCSOC/ 12 9319 4 w 16/e 2329 5 -Oe 8d mortgage se auring money lent lo fir a nce 1 he Impra i io me nls on constnucl ion of the Pnoject, on any par 1 hereof. Such Ra la a se of Clonsl ruO ion Clovenanl s i9 t at a notice of o a mph tion a9 neferro d to in I e Cla lillorniia Civil Code, Section 3093. 500. (ION DNAN-AS, ( IOP IIITIONS, RDSTRI(ITION S AN D RDHAA MEP 'D OHLIGAITIOPi 9f 11. Ua a s. Tha Par is ipanl covenants a r d a g ne c s far i-1 sa lf, its sue a c ss ors, its a ss ig r s, and evarysuccesson it inlenest to the Side or arl)l I art iheneof, ll at aftan the Agena�l's issue nae of release of Construction Covenar is pursuanl 10 91ac liar z1l] all this Agneement, 1he Par iail and shall maintain, use, and openalo tho 91ita Ion no other use Ilan as a oammencial, oilfiae and netail faailily wilh appnoximw ely 8,000 s quare feet a 11 gno.i s le, s able I wilding a ra � devolec 1 to 1 I e w e s s pea ifled on penmitta d hent it , t s nequinc d it tl is Agno ement in conformity wk h the lint itations a f 1 he Hn1 itlo rn o n1 s for a period of I mIenly (20) ya t rs fi a m tic dailc oil 1 he issuance of -Ihe Ra lc a:i o of Clonstnucl ion (la iienants punsuant to SoQtion 412 of tl is A18reamenI (Ion tho d, to the Ago tlay vias nequirod to issue the Ra lcasa of Construction Covenants, whichevari occurs first. Na uses; a II a Ihan Ihose specified henein sl all be po nmit ed wilhoul the pnioll wllittatl appna iia 1 of 1l c Agency (veil is l appnova I the Ago nay rnty gra n an deny in its sole disonolion:. 9f 2. OperMingf (lovenani. Fon a tarm aanmancing upon the distursemenl Dttf and ending upon the twc tltio th , ri n iva rs ary tl o ra a it I1"Operating Peniod tl a Owner herc by covenants and agneas -lo devo'le 1I he entire building an t conlinuaus basis Io tl c openm ion of nel ail stones, comparable as to qui lity of merchandise a nd sale s volurri c as of 1l he dale he neof, 'lo M ission Pnomenado to a a -led al 26832 Ortog t 11 ighvi, y, San Jur n Clapisl nano, Clalifamia. Hxce1 t wi'lh the p1lia n wnitlat comen'I oil I he Agenc y for ea c h insta nce, which c onsc tit may be 8 ra nto d on v iithha Id in ti a Ag ancy's sole and absolulc discnelion, the failure of the Ovinar to at use the Pnoject to be opanaled t s pnovided henain fora l hir ,l 1130) or mono a a n sea utive days shall, at the Alg c ncy's opl is tl, constitute a Elefa ul l ha neunde n; provided, however, ti r 1 the Owner sl t 11 not be in daft ult of 1:1 is Sac lie t1 V] during any r c riod Thal any oflhc Clwnen's tonanls are pravented fnom opeliaiing tie Pnoject due lo (Ji; raquin4d on necessary nenovalion of tl a impnovemenls llpra iii(led ti t tI a Ic riod duping which the Pnojeat is ria t oponatad z s a rosuhl of the ranaii�tion of the Improvatnants shall in no event ameed ane hundned flfbl 11911) days:, on (ii; evenly of force majeune as set forh in Seation 601 heneof. 11he ClperOing Peniod shall be a)ltanded far aichday ofclosulle permitted leneunden. 503. Tenant Aestrictionsi. Par icipanl shall use the tat, I gros,i lc,sable building ane, on the Si1c in the following mannt r; picvidod, I avicven, tl rt the Agetlay's Dxeautive Ilineoton in his an hen sole and absolute discretion may approve minora davizAcris from tle following conditions which t ne rc que.ita d by tic Par icipanl in waiting and provida d furthen ti a 1 Par icipant a a rn I lies m ith any t n d t 11 t pplia a ble City nequira me nls in connea tia n Y ith s uch devial ion: Z. 11hc sca a nd floor la t sable building anea may be usa d 11on a ffice, pansoml an business service iFaoililic,i, or otter non•nalail uses as speoifled in Scalian 9-3.303 of the Municipal Clode fan the Taunist Commercial ("TCI", disAat including, bul nol limited to the following: li) Alccounlanls, attomays, consultants; Iii; Ins ur, n c e ageno ie s; liii, Medic, I allflces; 14 DCICSCIC/1791 19dv16/421799-04EiI Iivj [in �inaars, aichitects and planners; (v; Religious, fhaternal o1 service anganizations; (vi Public facilities; (viij Real e, tata olfice., (viii) "Ilravel agencies; and (ix; Full service laundry and drys cleaner I Lisines,. (x; N assage therapy; (xi; Small busing ss, voa a tia n a I, I roile; s ional ; a I a a 1,; and (xii Financial bnokeuage oilfice, . b. Any remaining gno; s leasable I uiIding a rc a not used lou the above pugloses shall be oacupied by ualail tonanls con., istent with N is sion Promenade in ternus of qua litil a 11 meuchandi; a and sales na lume, wil h an objective and e rn l I a si; on ga n c ra ting local rananues, and pioviding retail useus geneuating high volume sales. 59 4. Mainte it a it a a. The Par icipant sha 11 maintain t he Impra ve rn e n I s that exi; t on the S id e filam time to time in aeaordance vIith the Algleamant to be Recorded Affac q Real Puopert).l the oovananls, condillions, maintenanac at ligation; and ati or Lie, tiiclions of vrlhiah shall remain in 411fect until ti a a)ll ivation of the Community ❑evelopmeni Plan, that is until July 11, 2032. I; suanae all a Raley a all Clan:tuuation Clovenants t .I ti a Agency ; I all not aflect Par icipanl's obligalisns under this Section 502. 505. Righty of Aa aess. Tlhe Aga n a y, fbn it; e l f and fbn 1 IN CI ity and a ti or public agena ie s, at their ! ale I isk and expem e, neservc s the right to anter the comma n areas an the Site of any 1 a rl thea eof veil iah i; owned ou corn rolled by the Pa rl icipant, at all ueasa na t Ic time; for the I Lirpo.,e all aanstruatian, raconsluuclion, maintenance, nepaiu an service oll any public irapuovement., ou public ilacililies located an the Side. The Agency or , uch others public agency exercising ; Lich right of entry] :hall take all reasonat la maasuue! to minimize inleifaranae wiilh the opeuatian all bu! roes: an the Site and !hallpuomptly nepaiu and nes lora anal damgc caused by , Liah entity to tie Site or the Impra iia ma nts thei eon. Alny s uch entt-Nj shal I be made only afters nea s onable not ice Io and con! c w a fl the Partioil ani, and Agency sl all indemnifil and hold Par icipant l armless room anal aas ls, claims, darn ages or liabilities per aining to any enlu;l. Tlhe Par iciparn agrees to aaapeuate wilh the Agenal in providing its consetlt and such aacess, and aoknoviladges tt a1 the Agency may obtain an adrn ini; tnative in; peclion wamianl a n olhei apps opriate legal ou equitable uamedies to anibuce its nights punrLiant to ti is Section 505. This Section 505 shall not be dearned to diminish any rights the Agency, the Clily, or any others I Lit Iia agencies may I ave wilhaut nefeucnce to this Section 505. Tlhe nights of access set forth in this Seation:105 shall remain in eflfecl until the expinalian all the Redevelopment Plan. 506. 14 ondinaliiminalion. The Paricipanl aovenanls by and fon itself and an,l successors in interest thal there shall to no discrimination against or segregalion all any person or group of 11ersons on acoaunt oil race, color, creed, religion, lax, rnarilal it, ttls, physical ou menlal disability or 15 DICICSCICJ 13 9719 z v16/(23219-0(& I medical condition, national anigin an anc( strj in ti a :ale, lease, st 1 k as(, lransien, t se, occupana)I, Icnure ot1 an'a)lrnant of the Imllnovemants ott ti a Side, non sh, II the Participant itself ot1 E ny penson claiming unden or 11hratgt ill aslablist on parmill -,ny such pr-,aIice an pr-,cllices of discnimin-,tion on so gtiegation with tlefent nce -lo the st It c1I ion, loot 1 is n, numben, use on occupancy of tt nand s, les: ees, subtenants, sublessees on nandces of the Impnov4mc nits an the Site. The flonegoing covenants shall nln viith the land. All deeds, lea: as on conlrz c'Is with nespaat to the Impnavemcnls on tI e Sit( shall contain on I a subjeattosubstanliallythefollowing nan(lisciiiniin�tion annonscgragztion alausas: a. In deodsi: "`Ilhe giianllee he nein aova nms by and for him: alfl on henna If, his on hen heirs, exeautous, , dminis Iraton:i, z nd � ssigns, and all pen:iaas claiming unden or Ihiiough Them, t at hent shall be no disc niminat ion against oil so gneg, tion of, any penson on g roup of pens one on account of , ny p sin lis tad in s ubdivis ion , IE ) on , Id) of 5 act ion 12999 a 111 he Govarnmenl Coda, , s those I E so s ane defined in Sections 13113d, 12928.1, subdivision ern; incl panagnaph Ill of subdivision {lp; of Seclion 12955, ,nd Seclion ]2955.2 afllhe (Iovernlrnant (loda, in tta sale, lease, :lutlaasc, lji�nsfeii, use, oiiaupancy, lenum, on enjoyment afllhe premises h4nein conveyed, noir shall tit gnanlae on any penson oh iming unden on tl nough him or her, osilablish on permit ny pnaatioe on pnaotiacs of disc niminat ion a n sa g ne g, tion with ra tl4 venae to the se Ic ction, loa z I is n, numben, usa on occupana `.l of tenants, lassaos, subtanznls, sublesseas, orvanclaes in ate gnamises henein conveyed. Ile ibuegoing cove n, n is sh, II nun wit h 'I he land. " b. In leases: "7I a lasit e henein covenanls by and for himsaIll or henself, hi; on hell Iain:, axtcutor,, zdminislnatons, and assigns, and all panic ills a]aiming unden an Through him on hen, and this 14, se i; ni, de and aaaepiled upon and sub'ect llo the fallowing conditions: "' lhal 1I ere s hall be no din cnimin t I is n ag, in, t on s egiiegal ion a 11 z ny penson or gra tip of penson; , on z ccounl a 11 E ny ba; is lis led in subdivision (la,' an Qd; oil S oa liati 13911 of the (la`itrnmant (lade, as those bats ane defined in Seclians 13113d, 12926.1, s ubdivh ion ern; and panagnaph Il1l oil subdivision Qp; a I Section 12955, , nd Section 12955.2 of the (lavcrnmant Clade, in the h sing, sublaz sing, trz inferring, use, aacupanall, tenune, an enjoyment of the piicmises henein [a t sed nor she 11 t he le, st a himsa til a n hers elf, on ati l l penson ahiming unden or through him on hen, aslablish on permit any such piiaclice oil piuclices oil discrimination on segregation with neference to the seleation, location, numler, usa, an occupancy, of tenanl;, le;seas, sublessees, ;tiltantnls, an ve ndees in the pna m i; es he no in to E sed." 41. In ooM ra0s: "It ere : t all be no dh a riminal ion , g � imil a n s egnegal ion a t, n)l pen!an on gnoup of pan:ons on zccount of Mill basis listed in subdivision Iz on Qd; as Seation 12955 a 11 the (lovern m a n I Code, z s tho, a bas e: aiie defined in Sea I ion: 12926, 12926. 1, .ubdivision Qm and panagnaph Q1; a] subdivision Ip) of Section 12955, end Seation 12911.2 of the Clanannment Coda, in the sale, le, se, ; tit ierse, lnansien, use, ocat p�ncy, ttnura, an enjoyment of the premises which ane the ; ut jacl ofltU Agnearnent, tian ; t t ll the gnantaa an any pan; an chiming tmiden oil Ihnough him ati hell, astlablish oil permit any pnaatiaa an przcticea oil disciiminztion oil segnegation viith raflanenae to the seleation, location, numben, use or ocatpznay all tenants, lcssee;, tuttenants, 16 DCICSCIC/1951191v161021799-04Fi ,uble;.e( s, on vendf e s in Ile pnami;es henein conv41led. The fan( going covananIs shall run witl tha la nd." 11he covenant; a ga insl discrimin a-1 is n, se -1 Oor 1 in I l is Sa a I is n 506 shall conn inue in effaat in parpgltuiiy. 507. Repayrninl Obligalian. Pariicipani shall rapay tha Clo`iananls Loan in accondanea will the Promissory 1` ota . 71he PnomiE sor-A Note shall t e sa cuued by I c Deed oil 7nus 1. 508. Dffiat of Violailian of the 'Berms and f rovisions of Ihis Agreemenll. V e obligations and covenants asiablistcd in This Agneemant, asset forth in Secl ions 101, 202, 403, 405, 407, 409, '101 t1 nough 106, inclusive (1 he "Cove na n t, "' stall, wit hou l 1ua gaud it o l ea l n is al cla, sifiaa-liari and designa-lion, ba binding lou tt c banefil and in flavor all the Agency, its suaaessors and assigns, as to :Ihosa aovenanls which aue fan il; tenefit. The aanananls aantained in tt is Aguc ement shall nems in in allfecl fon Iha pa niods s peaified ha nein. The Agency is deamed tic t anefiaiaryll oil the lcrm; and pnovi; ions o1l This Agneemant and of the covenants running wilt Iha land, for and in i l E own right a and 11or the purflosa s of piio'l ecting the inleresi, oil -Ile community and athan paries, public ou privata, in whose fawt and for wt use benafill 1Ihis Agneemant and the aovenanls nunning willh -Ihe land have been pro`iidacl. 11he Agneeman and 1l e covenants i era in ! I all run in favou oil -Ihe Agency, wilhoul negand to wl attar the Agenuil has teen, remains ou is an awneu oil any land on inilevesi theuein in the Side or in ilhe Community Development Prajaal. 11he Aganay shall have IN nighl, it 1he Agneemant on covenant., aue bucacha(l, to exanaise all rights and remedies, and to maintain any acilions os suils at law on in equity os otter gnopen proceedings :lo eniloice the cueing of sual bseachas to wl iah i:l os anil o'll er beneficiasie,i of It is Agreement and aa)icnanils mail I a errlillad. 600. OHNERAII PROVI S1 ONS IIOII. Noiliees, Demands and Communicalions Among the Farlieai. Alritien natiaas, demands and aamrnuniaalium tclween ilhe Agency and ilhe Participant stall ba !uflficienlly ghien ill delivered by land (and a raaeip-1 thenaifoi is attainad an is ralused to be given;, sent ty talaaopy an ovennigh'I deliver)l sermice, on di:pailched t,I regis-lercd os cerifie(l mail, paslage pnegaid, naturn ueca ipt requeslad, ,lo: Agency: San Juan Clapistrano Clarnmunity Rode velopmeni Agena)I 32400 Paseo Aldelamlo San Juan (laphtnano, CIA 92675 Alilention: Exaauli)ia Direc'lor wilt a copy 10 : S'I ra d ling, I oa ca, C la rh on & Rlaul h 660 Newparl Canler Llnive, Sui-le 1600 Nawparl Beach, Caliilornia 92660 At1 enl ion: Thomas P. Claik, Js. Par uiparit: 26755 V1=RDUGCI LILICI 26755 Va ndugo S Iraet, Suite 100 San Juan Capislnana, Clalifarnia 92671 Attention: I nic Allman, Managing Mernban 17 DOCSOC/1I93194v16/021',99-00Ed wilh a copy to : Llaw 011flaes all Hnian P. MoClihina.l 1( t 33 N antuna 13oulevaod, St ite 300 13ncino, C la liilorniia 91436-13(1 Attention: HnianMcGilvray 9uah wniten natiaas, demands and communications may be sant in the some manner to such other addrasses as either par y may foom time to lime designate I ;I mail as prariidacl in ti is Section 601. Any wniten notice, demand an communication shall t e effaclhic upon receipt. 602. Confliclls of lnllere.il. No memben, aflflcial an employee oil the A gency shall ha`ia any pensonal inlenest, dinecl on indineat, in this Agreement, non shall any memben, official on employee pavicipale in any decision ralalin8 to the A 8neamant v"1t iah afflaats his persatlal intanasts on the inuenests of any corAloration, partrionl ip an assaoiation in which he is dineatly an indirectly inlerasled. 4143, Enfniced Delay; Extension of Times oil Herfonmanae. In addition to specific provisions of lhis A18n(amanl relating to talled peniods and extensions of time to perforin, penfa rm ana a by any par )I ha neunda n shall no l ba da a m a d to be in da flau ll , and all penfornua n a e and others dales ipacifiad in This Agreement shall be exlendod whone dela;ls or deilaulls ane due to: wan; insurrection; stnikes; lockouts; riots; flaads; aard cit akes; fire:i; casualties; acli of God; acts of the public anaml; epidamies; quanantine nestriations; fneight embangoes; lack ail tnanijorlalion; goverrimental nes'lriations or poionit1j; litigation; unusually sevane weathon; inutility to secure neaessarl latan, mataniah an tools; dolays of any conlnaclon, subcontnacton or suppliers; acts on omissions of any all the a II an jarties; acts or fa ilunes to act all the City or any othen public an goverrimental agency or amity (a than tt an the acts or failt nes la act of the Agency whial stall not exatlse penformanoa by the Agency,; an any other causes t ayond the control an without the faul'1 all the parly claiming an extamion of time to penform. Nolvriilt standing an,lthing to ilhe aonIna r}1 in 'This AlBnot mant, an extension of Aima for any such causa shall be fan iIhe peniad a11ilhe enforaad delay and shall commenaa la nun from the tima ail the commencomant of the cat se, if police by ti e parly claiming such extension is sant to II a othan parly witt in thirty iI30) days of II a aammanaemenl all the causa. 'limes of penfarmanao undan this Agnea ma nt mail a iso be exA n c le d in mirit ing by the mutual agneemo nt oil Agena ; l and 'I he Partia ig a nt. Notwitl silanding tl a foregoing pnovisions oil this Seation 601, the Parlicipant is not entitled punsuant to Ihh Section 603 to an a?ilansion all time to panforrni beat se ail past, present on ft tune difflaulol in obtaining it itabla permanent financin8 Bon the conslnuction of'Ihe Irnpnovements. 604. Nonliabilit3I oil O1tia lair and E mployee �, al 1 he Agency. No m a m be n, offlcial an a m ploys a ail the Aga nay an the City :it all be pe nsonally lia l la to the Pan icipanl, or a n; I succe s sa ns in interest, in i1he event of any default on I neach ly tl a Algency (an'Ihe City ox fon any Default, on any a m a t nit which may bee ama clue to the Par iaipaw on anal successors, or an any at ligations under the terms a111his A gneamant. 605. (lammencement of Agency Reniew Aeriod. It time penia cls set flonh Ianaia for the Agency's appnoval of a 8 na amends, plans, dnawings, or otha n information submits ed to the Agenci l 1.1 the Par is inanl and for anll olhes Agency considanation and appnoval I oneuncler which 11 eonlingent upon dont manlatian sequiied to IQ submit ed ly lie Parlicipanl, including will aut 18 DOCSOC111911 f 4v 16423M -Oa 8d limillalion any nequ( Med appr( lia h (nder Section 103 he:ue of,: I a II only apply and commena a upon it a Pan icipanl's complete !i I m iltal of al] the 1 equiii ed iniforrr all ion. In no event sha II an incompleli submittal I )l 11 a Participant t] iggeu any of the Agencll's of ligation: of n( iii( vii and,lor approval t ere ( nder; pnovided, howl liar, that the Ag( nay sl all notify lit Participant oil an incomplete , ubmitta I as soon as is praatiaable and in n( event laleii lhan the annliaable time set R nh 1101 th( Agenall's acllion on the par iaular itanl in qua lion. 700. DHIRAUBTS AND RHMEDIDS 701. 11] efa uhls -- General. Ii l,jaal to 11he perm itt(d i xte it, ions of time and lolled p( niods si t f( r h in 11 his Agr( ememl, alai lu1 a (t delay by a n )l pan y to perf( rm any ii rrri ( t pr(i ii: ion oil it is Ag:xement con: litutas a Ilefault ( rider 1t h Agieemi nt. The party who so Hail: or de lays nit sl imine dial( ly a( mm( nae to cuu(, a( rrecl, or r( medy such 8ailune ( n delay, and , hall eomplet( : e ah curse, correc'li(n (r nemedy with diligence. Me in.juned part)l ! f all give wllitl(n notice of deilaulll to the party in de ilaull, sp( aiilying 1t e defaull complained of I y ti a in.juned party. E xcepl as re qt ined to p11olecl again, I Jur hen damage:, d ( injured pary may not institulle proaaedings againt the party in defaulll until thiry (30] day., aflleu giving .uch notice on, pnovided 11hat Ih( parol is pnoca(ding with diligence to tune, suit gwat(a dime a! may be necessary to tune gil1(n the naturle of the 13 11aull. Failulle or d( la)l in giving ;uch noliae 1 all not ac rr:litute a waiven of any Default, nor, hall it change 1h( time oil De11au111. 111. Legs I Actions. 702.1 Insllilullian oil Legal Millions. In addili(n to any o1h( a nigl t, or nemedi( , and ut jail lo the ni ;lrietions in Seclion 701, an)l par y may in, titule le gal action t( tune, ac niecl on 1lemedy any De fault, 110 neaOi( r damages 8oi any Lle fa( It, o:u to of tain anll olhell nem((I�l con; islenl wilh 11he purTlos( , of t1 i; Agneemenl in 11he Supenior Clourt oil the CI( unty (11 C)uange, Slale oil Cla liilonnia, in an apprl( llniale municipal aourt in lhat county, (t in the Fedeual Ili:lriet Cour in 'Ihe (IQ nInal 11i:lrict o 11 Ca I iforni ia. 702.2 Applicable Law. The law: oil 'Ihe Stale of Claliilorriia shall govarn the inlerppi( la I i(n and enf( ra (me nl oil l hi: Ag n t men'I. 702.3 Alccepllanae of Service oil Pnaae! s. In the event 11 a1 any h gal arbillia-lion( n as lit n i; commenced against the Age nay, se rvic( cif ptioce: s on the Alo ( ncy stall to made by pan (na I , ervice upon It e Alg e ncy SeclletarylClity Cllerll on in , uch olheu manna r a: may 1 e pnovided by law. In IN evenl It a I any Ie gal as li(n is commenced against the Par icipanl, ,ervice 08 pi oce, s on th( Pa rticipant , hall be mad( bi I pe u, onal ; ( rvia ( upon a mana g ing n1( m b( n (11 1 he Par icipanl (on corlll( nata oifflaen if tl a Pan icipanl is a torula nation; and , hail t e iialid whather made within on outside Ihe Stale of Cal iforniia ( n in ; uch o'Iher1 rnannerl as may b( pnovided by laud. 702.4 Allorney'! Hee:. Efxcept a; otherwise expr(,.ly prlovid(d in Ihi Agneemant, in the avenll any legal action is institulad ba Iviten Agency and Participant or any olherl memb( n or partn(n of It ( Participant (n ills succe: sou(,; and a: sign(,; in connection wi-lh It h Aglieemenl, lhen the pn('iiailing party ,hall be anlitled to n(aoveu from the to.,ina pary all of ils o(. -Is and expense, 19 DOC SOC/ 1197114 v 1 6/0 23 219 -Da 8( I inaIuding aourl cos I, and ilea: onable altlornttys' fees, and all fet :, co: t,, and expanse: inaurred on amt appeal o:t in aollaction of any judgrnant. 703. Ailhlls and Remedies Ara Ch mulaliva. Elxce pt a., olherwhe expne:,ly stated in Ihi; Agri ement, tI a nighils and nemedie: all the par ies ane cumulative, and the exencise t y e itt or parly of one or move (i8: uah nights on ni ma(lia, sha II nol preclude tt a exencise by itl, al tht same on diilfe re nt timt ,, of any o l he a night) s on ]lt medie: fDn it he : a me Default) or any ott t r De ]bull by any ott or pa rly. 704. Inacilian Noll a Wls ivt n of Default. Any failune, or de ]a) , 1, by any part_) in a::ening any of lhein nights and remedies a. to any Default : hall not openale a9 a v(iaive:ii of any Default an of any sual nights on rt nit dies, on (Itprivt ,uch par of iU night to in:litutt and maintain aril action: on proseedings wt ial it mail dot m nevi , sary to pnolact, a:,er or onfonc( any ,uch nights on re me dies. 800. SAE CIA D HROVISIONS 80:1. Indemnificalian of the Algency. Me Paricipanl agnet, to pnoleat, defend, indemnif;l, hold harrrles,, pay all cost,, and pnovide a daflen,e for Clit, and Agency and lheir off(cans, boands and arnglo;l(es in any aatian l)l a )hind party challenging the validity, applicatiliiy, on inlerglni tation of Ihi: Agreement including, wilhoul limitalion, an action challenging the at ilily of the Agenail to pno)lidt tic Participant with tl a Algsncy A:6slanot. "Ilhe City and Agenoll :hall lave Ile rig( t, but not tit at ligation, tlo defend any suah action. When Paricipanl pnovide: such deilen:e the Agena,l will nol take action on viill noel flail to act so a: to allow a default judgment 10 ba tal tn. In addillion, Clit),,l and Agenoil ! t all pnovide a( a,onable asichtarlae to Par iaipanl in defending any ,uch action al notxpens( to Clity or Agency. Such as:i:llanco shall include (Iij rnal'ing availabl( upon nee:onable noliae, Cily and/on Agi nay ailficials and (mploye(, who ane or may be willne:,e: in ,uch action, and +Jii; pnovi,ion to Paricipanl of olhen inflorrrialion viithin tlhe cu, tod)l on aonlrol of Clil)l on Agt nay Il a I i, re levant lo'Ihe subji a I rna Itan oil the action. 71he Par iaipanl shall lave II a alligation' lo deft nd any ,uch action; gnovided, howe clan, 1Ihal this obligalion to defend ,hall nol ba effective if and tlo ti a axtant lhal Participant det( rmtine: in ii,, nea: onable di: ciie'lia n Thal It t intertest: oil tht par ies justify a compromise on a settlemt n'I oil such action, in mihiah east Par iaipanl .hall compromise an settle :uah action in a way -Ihail fully protaal, Agency and Clity frim any liability on obligation. Participant': obligation and nigh to defend :hall include the right lo I ine ij,ubject -lo vanitlen approval til the Agency and Clity; atlarna;l, and expert ne et s,,ary to de ilend, the rigt t to price:: and : t Itle nea: onable claim!, the night la t nit r inlo nea:onable settlement agreement: and pay amatlrtt, as requirad b;l the Herr, of! uch selllemenl, and the via l t i o pay any judgmt n 1, a: , e: , ed agains I Par icipanl, Agency, on Cli l; 1. Ifl Par iaipanl dt f( nd, an,l : uah as lion, a! ! el ibrth in this Seation 801, it ! t all indemnify anti hold t armlets Agency and Clity and II tin officer , employe(.,, nepne, enlallive,l and agent from and against any claim., la„ t,, liabili'lies, on damages as: essed or awarded again: t t itht n of Item t )l viay of judgment, : e Ith rnanl, an : lipulation. The Paricipanl furlhen agree: to pnollect, defend, indemnify, t ald harmle:,, pay all co: I,, and pnovide a dtfen,e fon City and Agency and lttir offlasr,, smplo,Ices and boands in any ae'lian by a (hind party fon perjsonal inury, including deal h, prop arty damagaon atht n dam agt, an i,ing aut of an nelate d to the aamtruetion and ant ralion of the Pra.jtc'l, such a, fon axamnIt, and wi'lhoul limilalion, a ,lig and fall of a patron, gut s11, an auslomen a1 a retail e:taI li.,hmenl. The ferry( oil ,uch fanegoing int la mnifical ion shall be unl i l 1 he expinw ion oil It a Medev( lopm(nt Plan. Tlhe fanegoing obligall ions 20 DOC SOC/ l 19:1 191 v 16/a 212 99 -Oa F r shall not appl)l i1 suah iri juryl on damage is solely due to ti a negligent an imlenlional ants or omissions aIIhe (lity on Agent,I an 1Ihein alficers, boa rids anample 11(es. 802. Real ffii4tgii Commission;. 71 t Parlicipanl re prt senls to the Agency 1Ihail it has fiat angaged 11 he st rvicas of any findeii ari biioker arid that it is noel liable fon any real estate 4arnmissions, I noken's A t s, an finder's Ile( s vit iat may accnue I I means of this transaction and agrees to I aId I armlt ss the Agena,I idiom such commissiam or fees as are alleged to be due from iIhe pary n al ing such mepresantalians. It t Agency represents to the Paricipanl ihW it has not engaged the services of any finden or broken and thal it is not liable for any naal asilale commissiaris, brakan',i fees, an find( m's fees vrf ia1 may aaerua by means of This tnansaclion, and agrees lo hold harn'iless the Parlicipant idiom such commissions or leas as are alleged to be dug lbiom tI t pary mal in g such represa ntk is n s. 803. 9 ucaes: oils In Inlenasll. The ti rms, covenants, conditions and lie,itnicilions a1 this Agn ement shall exlend to and shall be binding upon and inuna to 1Ihe benefit al the heirs, ext auions, adminislralors, suaaessors and assigns aIthe Par icipant. 804. Amandmen is ib this AgneemE nt. The Participant and tht P gt ncy agree to mutually considan nt asonabli requasts fan amendmtnts to tI is Agnet m( fit which may I e made I )I lending institutioris, or Agariay's counsel o.i financial consultant, provided such utquests are aansistent with 1Ihis A gnee nianl and wauld net substantially alter the basic business 'terms includt tl I ere in. `llhe Agenail's Hxecutive Direc'lor s1 all have the authority to issue inlerfl.ietalians, waive pravisians and enler into amendments of this Agreement on bahall of the Agency so lang as such satians da nol mut starnlially change 1I a uses parmitled an the Sile an'lhe finanaial provisions of 11 is A gnaan enl as specified herein and as agmeed to I y tlhe A E t ncy Hoard. All atht n miaivems an amt ndmen'Is shall require 1I t cons id( nation anti vinitlen consernl oftht Agency Haard. 8(9. Hnllhie Agraemanl, Waiver:. Thh A gree man I mail be signed in aounlerparts, and is t xaeuied in II nee Q3; duplicate originals, eaal of which is daemed la I t an original. T is Agreement includes pages 1 thraugh 22 and Attachment Nos. 1 through 8, veil ial conslitule ti a antire undensta n ding and a gn emend of it t par it s. This Agntement integrates all A tht terms and conditions mentioned lerein or incidental he veto, and supemsedt s all negotiations or pnevious agreement,i betwt an the parties an ti t in pnedt atssors in in an st wilh raspeat to a 11 on any pati of ti t subjeat matlan hereof. All waivens of tI t provisions of ti is Agneemt nt rnust be in writing bil and t xaauled the appropriate aids amities of ti a Agenall and the Participant and all arnandrnanls haat to must be in vsniling and exaauit d by 1I t appiianriata authorities of tht P gt ncy and 1he Par icipanl. In any ainaumslance whine under this Agreement any pary is raquined to approve o i disapprove any matter, approval shall not be unreasonably withheld, conditioned, or delayed. 806. Hxecuilkn of AIgneement. 7I is Agreement, Efts n being appjioved and au-lhoriied III IN e Agency must I a executed by Par icipant within eighteen 11181 Hails of such approval and daliiiant d is tht Agency. Wlhen exeauled I JI tht Panicipani and delivered to tie Agency, this Agnes merit must be exeauted and delivered by'Ihe Agenall an an belbre three X13) days afar signing and delivery of this Agra ement I i I Par ie ipani on Iii Ag nea rn a ni shall bt void, t xcept to 1 he extent 11 a t 1 he Partia illa nt 21 Doc! OC/1213194,i1i1/073289-40Its it all aonsent in waiting to a furtl as axtansion ofl time for I autl anization, exaauIian an c alivuy ail Ihis Agueem( nt. TI f Ila tea911 this Apeemenl sl all be the dale when it shall have bean approved by aatia n oil 11 he Ag( na}I. [Signailune block N gim on Jollowing pall ] 22 DC CHC C/119219, v 19117 2199 -018 b IN WITNESS WHHRE]OF, 1Ihe Agency and the Parlicipant have signed this Ownen Participation Agreement on 1Ihe iiespaati) a dalles set forth ba low. "AGEN(I'd" SAN JUAN CIAIPII S'➢RANO COMMIT N ITY RHI]EVEL ORMHN T AGHIN CIY, a public body aorponatle and politic ❑a'led: _ Ell 1: AT7HST : Manganet R. M onah an, Aga n a y c a cue taQjl ABBROVHII A19 10 FORM: SIna( ling, Yooaa, Canlsan & Aau-lh, Agena `I 9 pa a is I Counsa I Ua to d: AIFIHROVED AS TO HORM: Oounsa I to Cha irman "PARTIMPAN 'D" 26755 VHRDUGO, 11C, a (la litbmia limi led liability aomilany By: /110/11 Ali 21 DOCS 0C/1 2q 21 � 4m1(1/07 21 c 94039 A 'IITAC►HMDNT N O, J SITE MAA EIOCSCIC/17 97 I !4 v 16/12729, _pQ g,l ATTACIHIMHNT NQ, 1.1 ATTR ICIHM ENI ly CI. SIDE LHCIAL DESCRIPMON Lot 4, a Tnaat 134, it the City of San Juan Claphtnano, Clounty all Onange, Itata oil California, v pen mall ieaanded in Book 11, Page 23 of Ni.callanaaus Map, Reaa 1d;i an Oianga Clounty, ClaliR mia A TIIACHM ET 'n NO. 2-1 DOCS OC/ 1 ] 91 19� v l9/a 217 99 -00 f 6 ATIA ICIHM EN7 N U. 3 SCHE1111BE OA PIHRFORMAI?4UE T CIMIS : 1. Days aj e calendar & ys. 2. The Ra da ve 1 opmenrl Agency and the Aar is ipani may, b;l mul ual wrirl t en a gra a ma nl, amend ori modifil any item conlained heroin or the dale Ion panformance. The llxaautive Direatorl oll the Agency is hero by aulho iae d to appnova minor ams ndmenls as sell for h in his Schedule of Aerforrnlanae on behalf of t.f e Alg anal, Any an andmenl,l deemed major shall be submitted to the Redevelopment Alganay Hoard of Dineator s for considaration. The Clily is nol a party to lI a Agraamont and is not bound by the limas set forth her ein. BUILDING APNROVALS I Submission of Construction Drawings to City. On o I efore February 1, 2010 11he Ilariaipanl shall sutmil aonslrwclion diawingi, public improvement plans, land.,calla plans, demolition plans and such atl ar documents as may be reasonably raq►lired by the Clity iloi review and avalualion with iespecl to tic aonslrualian of the P:ajacl pursuant 'lo Seation: 0:. Par iaipanl may submit these plans to the Agency and Clity eanaurrenlly for plan al ack, 2 City Plan Check Approval. (lily shall aomplale City shall provide comments on R.91 [Ilan its t uilding plan ahock approval. cheek within 15 business clays of sut mittal. Participant shall pra vide i evisions to first plan cheat comments within 15 business days of receip'I of comments. Tt a (lily and Par icipanl shall i espond wilhin 1 tl business clays rl hei eaflei for each addilional plan check round. 3 Completion of Building Plan Check and Issuance Upon swisfaclion of all condi.lians of al Construclion Parmirls. Clity at a II issue approval A r buildings, public conslrucrlion permits. imps ovamenl, landscalia and/at orlhei lequiiied rievievas and payment all all lequiiied building gernuil and development impaal fees. 4 Submission of Insurance Certificates and Prrior to the commencement of Endolsamenls. Par iaipanl stall sutrnil aansllr►lalion. Carl ifiaa les of Inswance and Elndorisements to Agency in accord vilith Seation 401 and 4111 olrlhis Agi ieemenl. AT"AI GHM HN'D NO. 3-1 DOW OC/129 21 S,hi1 (1/0123911-9086 A]ITACIHMHN7 Is Q. 3-1 DocsOC/ 121219 411111/01' 29 9-001d 5 Appiiaval of Plans. Participant shall have Prior toaammanaemem ofItading. appiioved plans for site gnading, ulilities and public impnovamants. CONSTRU(171I0N 6 Com nu+ tion M a na seri. Participant shall submit Tat la i:i tl a n Iwo weeks piiia ti lo pra pa sal fa ti Gena i al Const ru+ tion M a nageu to aomrn ancement of demolitia n and side oversaa side devalopman1. ptapanation. 13 Commencement of demolition, site preparation, Within 4:1 days al exaaution of GC ug ading& I gilding impravarnan s. coninac 1. 14 Release of Construction Covenants. Agency to Alitl in 30 days afleii Agancy has furnis[ Participant wish a Ralaasa al Clans-Ini(tian conclusively (10 armine(I that such Oovanan� upon the (omlllatian all the consimclion irnlltiovemants on Ila site ImIltovements. I ave -been satisilat touily compleiled. A]ITACIHMHN7 Is Q. 3-1 DocsOC/ 121219 411111/01' 29 9-001d A TTA(IHM DNT N O. 4 RHUEASE OH CONSTRUCTION COVHN A NTS RECORIJINCI REQUESTIED HN ANL VVI}-. ENIiECICIRDHP MAIDTIO ANL SHND TIAIX 8TIATIEMENT1S TO: San Juan Capistrano Clominuaity Ra deve lopment Agena 11 12400 Paaao Adelanio ) San Juan Capi3trana, CIA 92675 ) Attention: �paca Ato)ie T1 is Line 1h Rico rdor's Use This document is anemAt lksm t1 a II2:Imont of a raiarding flea pursuantte Goiiernimant Ulcdo'. eation 17183. RELHA SE CIF C ONSTRUC TIC IN C OMENA IS TS This RHLHA SH OR CONSTRUCIT'' ION CIOVENAN79S Qthe "Rleles se is rn a de as of , 200_, by ilhe betwe(n tha SAPI JUAN CIAPISTRANO COMMUNIT)I RDDEVHLOHMENT AGENCY, a public bodil conpatata and politic (Iheieinafteii Irleferred to as "Agency") and 26755 VHR13UGCI IILC, a Cla lilorrlia Iirn ited liability company iIl a i (ina flan nefenred to as the "Parr icipani AE CITI,z L61 A. The Agency and the Harticipant have ernlened into tial certain Ciminei Par iaipaIion Agn t mend (1he "CIPA") dated , 2008, cone( ruing the i( development of cern in raa l prop( rty iiituata d in the CIi13I ail San Juan Cag is lra na , Clalifa rnia as more fully des coil t din Exh ibiil A atl acht d I e ra to a nd m a de a pan heneof. All a a pi I a lized iI errnrs not defined henein shall ha r 1a I It meaning s(t Jor I in th( CIPAI. B. As nefenenced in Saclian 411 of 1he OPA, the Agency is naquira(I 10 furnill tic Participant or its succeslonm with a Release of Covenants upon complttian of constnuation al tie Inipuovemenia (jai dtfine(I in Section 403 of the OPA;, which Release is uequiutd to be in auah lonTi am to permit it to be ra condi d in the R t coiideu's a lfice of Clra ng t County. Tlhh R t lease is conclus hit deterruinalian of satisilactony completion of th( aansiluualian and development of the Inipnovements u( quire (I 12 the CIH A. CI. The Ag a ncy ham a a nclusively determined that sua 1 a a n strwa I is n oil the Inn p novements on rlhe Sita ham I ten satisfaa lorily completed. A I TITIAI CIHM HNTI NO, 4-1 DOUR 0UI1129219dhi1a/M19114086 NOW 7HDREHORD: 1. As pluovided in the OPA, -Ihe Agency does I arat y aartify ti a l the aans-lruatian oil the Irnpnovements on tha Sita has been satisibatonily penilorn ad and comple Ied, and that such conitnuction complies Witt tha CIPAI. 1. Tl is Melease of Covenants caas not aonstilwe evidence al complianca witl on satisfaction of any obligation oil the Participant to any I al( an al a mortgage oil any insurer of a mortgage secunity money loaned -Io financa the wool' oil aonstnuction oil Impnovemenls, oil an`I pari lheueof. 71his P eleasc of C ovenanls is not a ri&iae of completion as neferrac to in Seation 3093 of Ihe ( alifornia Civil Code. Tha Melease of Covenanis dacs notconstiluie a aarnplation all( uelaase of the covenants unden the OPA except the a k ligation to cons,lruat the ImpnovemenA. (Signailums begun on fodbwingl plaglel ATHAC F MHNT A Cl. zI-2 DOCSOC/l,%194 16/0�299-0cSil IN WITNESS MIEIE REOH, the Agency has c xc c w ed tl is Plc least as (ill the da It sell flor h above. A'A IIEST: Ag+i nc y 31aaratary AFIPROVBD AS TO NORM: Stria dlin !I N a c ca Clarlson & Raul h, Ago nay 31Uacial Counstl Al CIE NCY: SATS JUAN CAHISTRA14 CI CION M UN] 71Y REDS VE]LOHMENII AGENCY, a put IN I a c111 c ogla nate and politic Chaim an HAIRT]ICIIHANT: 26755 VHRDUGO LILC, a Claliflarnia limittd liability com pail l l I'lS: A'IITAICIHMHNII MI. 4-1 DOCS OC/1211 H4,00011299-1016 EXHIHI7 A TO A7 T ACHMHP T NO.4 LHGAIJ DESCRI PIION Lai d, of'laact 114, in,Ihe Clity a San Juan Capistraria, (lautity of Changa, State of Clalifornia, as ptr reap iiecoided in Hook 11, Page 11 al Miscellaneous Maps, Wecoiids ou Ouange (lounty, Clalilbrnia HXHIHITI A ICI AT WIH M E NT NCL d DOC'OC/12117 xq4,0111012299-10:16 A `DTA( HN HNT NO. 5 MHM ORANDUN OR AGREHMENI RECOADII, CI RE CIL ESTE D Hid AND AIF BN RE(ICI14DHIl MAID 710 AND SHND TAI)l 31`111 ENI91 710: San .Irian Clapistnano Clan munity Redevelopment Agenall 32400 Pasao.Adelanto San It an Capistrano, CIA 92679 Attention: 9p ce Abode Tlis Line for Roccrder's U d Ti! dacumant is axanpt ;kern the pal Imant a fl z racardAg iia@ pursuant to Gonaniment Ca da Say tion 21313. MEMORANDUM OR AGREEMW 71 TI is MEN ORA1N 10 UM OR AGREHN ENI (the "Algraamant") is entened into on '2008 by and betviaen the SAN JUAN C A RISIRAINO COMMUNITY RHDEVDLORMENT AGENCY, z public body corplanate and politic (heneinaflen uafaned to as "Agency"; and 26755 VERDLICIO HI1C, a C, lilomk limited liability company 11 era inz ften nefened to , s the "Par icipant"). RECITAIIS A. Punsu, nt to t n Clvincn Par iaination All neon an dated as of `3q43 Qthe "(IPA"), Pz rtia ip, nt has a gra ad to constnua t 1 he In pnovemenl s z n d a a ni ply with ti a Clovenants nd Agency has agreed to the Cava m n Clonsida n tion with neipacl o tl a Site dasanibed on F xhil it AI a ached heneto iI"Si e"'. H. As , condition of such CIPAI, Agency l t s nequined the neva rdation al this M(i monandum of Algroamen , and Partia ip, nt I z s agnea d to viecul a and neaond 1 his Agreement, wl ial shal I ruin wi h t1 a 1z nd. CI. Thii Agneement is atrtaned- into and recorded in , ccondanca witl (I, lilorr is H aaltl and Safety Clode Seation 3'437 and :: 4: 9 , nd tl a Aedviala lln ant Plan. NOW, IHHREHORE, THH A UBNCY ANI] PIARIICIPANI AGREH A S HOLHOWS: 11. Incorporalion of ORA Hnovisions. 71he ptiovisions of the CIPAI ame l e:neby incorplor, tad 111 nefenence as tl at 81 set farh in lull. The inalusian aIthe fallowing pnovisions shall nol limit the incorplon tion oil the OPA, I Lit is nigra 1}I ion convenience. Clapitalized tennis not defined A171TAICIHMHN71NO. 5-1 11 1/900/129 21 S 4111 (1/03 21 S 9-0 03 6 henein shall havo tha mt -, ning s defined in ti a CIPA. Panagnaphs 1 thnough 13 heue of im ludt some of the salit nt llnovisions of the (IPA. 7. Pre hibition Againsl Change in Owners t ip, Managemen l and I 0 ulrol of Isrticipant. Tha qualifications and ideniiilies of thf Pariaipant, including 131nic Allman, lie M, paging Membeu of Par iaipanl, an of par iculan Banc cra 1lo the Agency. I1 is bac aust of those qualifiaaiions and id(ntilies ti at the Agency has enlened inia this Agiieemeni with the Par is ipanl. No voluntary an imia luntary sus aes9oii in inlenesl of tha Par iainanl shall acquiiie any inu rE sil in 1h, Site on tl E Pnoje(t non any nights on powers unden this Agneen ant except as expressl)l set forth henein. Duning the Clpenaiing Peniod, the Participarit shall nol assign on Irari fer, all on any pari oil this Agneement on the Si:le, a n any porgy ion(s lheneof, on inleuest(Is) tt c rc in, on any right(s) heneund( n willetit the prian wrim n appnoval of the Agency's Hxeculive Diraelon. Ass ignn ants ton financing llurFoses shall la allllnoved by the Agency's 1_Ixecutive Ilinectan in aeaandame vnith this Section 103 and viith the nequinements oil Section 409 of 1t is Agneemenl. Prian la any assignment Nihiah nequines Agency's Hxeculive Direcilor allpnoval hE neundan being considt ned tori z ppro iia I, the Pan icipant shall be nequirt d to delivers lo the Agency's Hxecutive Director the form all a proposed written assignment and assumption agreement in which the assignee would expressly agree la assttn a all nights and obligatiatis of the Par iaipant undan this Ag nee ni t nt which anise after tic effa etWe data at tha ai s ignme nt, and in rest is t assignment and assumption agn ament the assignee viould agnee is assume on Parti+ ipatit would + xpnessly n+ main nesponsible llor all penfarmanac of 1l o Par iaigant which anoso pnian to the efflt ativo dale all the assignn ant. the assignmani and amurnlltio n agneamant shall 1e in a florin neasonably satisfactory to the Agency's legal counsel and Agency's logal counsel shall have apllnoved tie assignment and assumption agneomant pnion to its execution and pnior to it beoa ming t flfeclive. No laten than the data tic assignment 1 ecomes eilfective, Participant and tht assigne( stall delivers to tie Agency a full,l execuled eapy oil the assignment and assumption agtr arrant. Notwithstanding the tonegoing, neither tic lander allllnov(d by the Agency pursuant to this Agneement noii its succossans on aisigns stall ba requined to executo and deliver an assignment and assumption agntement and tha rights of such landenand its suacessons and assigns. Notwitt 9landing any olhen pranisian at this Agnoan ani to the ooninary, Ag( tiny appnoria I all an assignment of this Agneemant on tl a Site on any into nest tho na in shall not be nequirad in connection with any ofihe A (lowing ileaal a "Permitted Tlnansten : (i; Any wansilers in which tlhe Par ioillanl netains a minimum of fifly arc peraent (91crc, oftho avinership and retains aarnplata management and decision making control; Iii; 71111ransfens nesulting ihiom the death an mental an physical incapacity of an individual; i1iii; 'Ilhe gnaniing at temporar)1 on ponmanent easements or parmits to facilitate the developm( tit oilthe Prgiael; ijiii) '11he leasing all separate spaoe s in tl e t i iiding in tic normal counse all business gumuanl to laasos 'lo commence no aarlien than Par iaigant's compleilion of the building core and shall as evidenced by the issuance of tie Clartificalo of Final Insp+ation - Building Clans and Shell; AT7IACHM EI` 'P NO. 5-2 DOCSOCr17 97 19, v t d/1' 329MI S6 (v; 7nansfer3 on assignments in trust fon the benefit ( 11 a spouse, childran, on grandchildren; (vi; A sa le of the Site at f( mea k sura Qon a conveyanae theneof in lieu of a ft meal( sure punnia nt t( a f3orea los une there( f by a lander a p p move d by the PIE a ney in acs( ndam a wit[ this Agreement; 3. IndemnitIN. Participant ai meas to and hereby does indemnify, defend and hold Agency and the City and thein naspaative offiaen., employees and agents harnnlass ilm( n and against any claim, aation, suit, pnocaedial, loss, aosil, don ale, liability, daficiano),l, fins, ponalt,I, puniAve damage, or expense linaluding, without limiuti(►n, attorneys' flees) (Iheueinafteu collectively the "C la ims": , resulting kom, arising ( ut oll, or lamed upon Qi: tt a presence, vela a se, use, generation, disel arge, stonaga, on disposal oil any Haaandau: Malerials on, unden, in, on about, or the transporwion of any suet matenials t( or from, tt a Site in `ii( lation of applicable Envinonmental Haw, whenever disc( iiema(I on (ii; the vi( lation, on alleged violation, ( f any statute, ordinance, ( ndem, hula, regulati(n, permil, judgment, on license malalinj t( the we, ganenation, nelmase, dischange, it( nags, disposal, on -Iran.por a-1 i( n (f Haaardous M aternials on, under, in, or al: (tit, to on from, the Site whonuicr di;covaned. This indemnify shall include, without limitati( u, any ( laims for pensonal injur;Il inaluding siokne.s, disease ( in death, tangible on inti q ibis proper y damage, compensa-li(n on lost wages, business ins( me, profits or ( than economic loss, damaj a to tt c natunal resource or the environmeml, nuisance, pollution, contamination, lack, spill, ralease, on (than adverso eilfact (n the environment. This indemnit,l shall not include any Claim dines fly resulting from, arising ( tit of, ( n based upon the negligent aotivilies of Al ancy, City, or any of tl aim offiacrs, employees, on agents. 4. Commanaemanl and Complelion of Conatrualion. `Ahe Par icipaw hereby o(iiananls and agrees to promp'lly bagin and lhereaftan dill€ entl)l pnocead to aomnlati(n The aanstruati( n oil the lrnpnovements and tie development offl a 91ito in conilorrnance with the Schedule oil Perfonriance. 5. Bodily Lijury and IIuopert3l Damsfa Inauoanae. 710 Partiaipaof shall pilotedt, defond, indemnify, assume all responsibility f(n an(I I old harrnless 'Ihe Agency and the C it,l and tl ein elective and appoin1vc boards, officers, boards, agents and ampkyecs, finom any and all Claims, vil ial may be caused [,I any of the Paricipant': aatKities under iIhis Agreaniont, ragardla.s of vil eft cr such aclivitias or parformanae theneof be by iIhe Participant or anyone directl,I on indinaatly amployed on conlracted wit[ by 1he Partiainanl and negandless of what} en shah (larnage shall acarus ( n be discovered before or afdan termination of This Agneement. From the date of the ( onslruati( n Finanaing ( losing Data through tha data the Agena),I issues the Ralaasa of Construction Cmienants for the Improvements pursuant to Section 412 herein, the I articipant shall: Ili) ( btain and ma int: in a p( Hoy of oarnmencial general liability insurance, which :hall include blanl at a( ntraotual covenago, and it a II have lire its of not less than 7voia M illion D( flans ill � ,a a a ,( a a ) pen occu mence, and if a n( lia)I forn with a genera 1 aggregate limit is used ( n pr( iiidoid the aggregate limit s[ a II be not lass tt an twice the pen oca(inenca limit, which policy(s: shall protect tl a Par icipant, the City, and the Agency from alaims fon sual damages, and vit ia[ nolia)I shall be issued by an "A:VI" on betlem mated insurance caiuiien as mated t y A.M. Hest ( ( mpan)I, and shall pnovide all coverages ( n an ocaunence basis; and Ilii) obtain and maintain ( n cause to t a ( t tained and maintaine(I by the general contractor general liability insurance. The Participant shall furnish an endanscment,ls: of imumance aounlcrsigned by an authoriAod agent of tie insurance aarnion on a Uirn of the ins(inanae caniiar evidencing andJor A'ITAC HMHN7 >` O. 9-1 DOC'OC/129E H4,011/01,299-4019 efhating the nequinements henein and/lon the changes to tic Participant's galiall to ailfect suah conformity and saving fa rl h ti a gena nal pua `lisions of the ins una nce covenage and an enc loiti a mant that shall name the City and the Agency and thein raspeative oilfiaem, boands, agents, and employees as additional insureds undeii the policy witl nupeat to tl is Pnajact and this Agneement viith tie Agency. the endorsement by lha insuranoc carvier shall contain a statement of obligation on the par of the issuing agent or aanien to notify tic 0131 and tic Agency of any matenial reduction, canaaIla tioii, on non-nenavia I a the covenage at least thirty 1130) dads in a(hlance of tl a aflleative (late of anil such material al an€ e, ar non-nenewal. A at less than fillleen (19) days Anion to the expiration dale of any policy of insurance nequined by this Panagnaph 5, Participant shall cause to be delivened to Agenall a tinder or cerlifiaate all insurance witl nespect to each nanewal on new poliay, beaning a notailion evidencing paymen l all the premium i1henefor, or othe n pua a I of pa, lni e n t reasonably satisfacloryto the Agency. In each inslanae a8 the provision of insunanae, aer ified duplicate aapies of the goliall(js) or nanewal policylls;, as applicable, shall be delivenad to the Agenall's Miecutive Dineclon witt in thir y (10; days ollthe date of such policyi1s;. 71 a Par iaipant st all alio fun ish or aeuse to be furnished to ti a Agency ailidenue sa Iisfactor)l to the A gancy that/ it and any conlnaclon Witt 111 arm it has contrasted fan 1he penformanae of wonl an the Sile on otherwise punsua tit to This A gnearnant aanrie wolll ens' compensation insurance as requined b,I lavi. It Agancy Ieiieby delegates to tle Agency's Hxecutive Direator, wilh and tinough aansullatian and adisiea Inom ti a Aganoy's and Cky's legal counsel and ni<k managen, tte authority to consider, and appraisa or disappraise, wiiitten naquasl js; from the Par iaipant concerning any pnoposed modifiaa lian(js) la the indemnification and.lon insunance requinemants of this Agreement. Provi(led, however, t)l suet delegation, the Agena!l expressly reserves to itselil and the Agency's Hxeculive Diueclor It a sole and absolula discretion 'lo appraise ar disapprove any such modifraation is nequasled by 11 a Parl icipant. t nless and until any suah nequasted modification(ls) is appnoved in wniting by 1t a Agency's Miecu-live Direalar, in l When sole and absalute disaratian, the Pan icipant nemains obligated heneundan and shall comply and conilinue to comply will the indemnity and insurance nequinaments set farlh in this Aglleement. 6. Goveiulmenilal Requirements. Par iaipant shall carry out tie design and aonslruatian and opeiiation offthe Impra`lamenls in aanllormlity with all Governmental Requirametrls. 7. 'Daxes, Assiessmants, Encumbnanaes and Iliens. The Partiaiparll shall pay when dela all heal estale taxes and assas.inianls on the Site. Prior to first Sale all the Project by the Participant, the Participant shall not g lane or allow -Io be plaae d art 1he Site on any part thereof a n)l marl gage, trust deed, encumbrance or lion olhen than as expressly allaveed t )l this Agneemetit. The Participant shall remove on have roma`lad any levy on aVlachment male on 1he Site an an)l par ti a re a t on assune the satisfaction theneoll 411 in a ne a sonabla time t tit in a n`l event pllio n to a sale tt araundall. A othing henein conlained shall be deemed to pnol ibil the Parnicipant from contesting ti a validity on amount of aml tax usessrnant, enaumt range on Tian, nor'lo limit the namadies aisailable to the Participant in nespecl thereto. 8. Uses. 'Ilhe Partia ipa n t a a ise nand s and agnees fon itself, its succi s :I a ns, ill assigns, and ever)l suoaessor in intenest to the Site an any parl lheneof, that alhell the Agency's issuance of Rolaasa of Construction Covenanls punsuanl to this A gnearnent, tic Participant shall maintain, use, and openate the 9 He fon no oft ar use than as a aommoraial, office and retail facility with appnoximalely 8,000 squane feel of gross leasable building area devoted to the uses specified on permikled henein, as A'HTA UHN HN1 NO. 54 DOCS OC/12921 S 411](1/012H9401 uaquinacl in this Agreement/ in eonfonTiily with the lirnitations of the HnIillements fou a period of twenty 11 fl) yean3 boom l if c date of tha issue nae of the Release of (lonstrL ction Covenants pursuant to this Agneement I1or tha data 1t a Agency wa , nequirad to issue the Aelease of ClonslrL cV ion Covenants, whicheven occuns first. t a usa(s) others than 'Ihoso spaaifiod herein shall ba permitted without tle puia n wnid en a n n noval al tl a Agena, I wahia h approval the Agency may grant oil deny in its sole d iso netion' . q. Opanaling (lananantl. Foa a term commeminl upon the dialunsament Data and ending upon t/he twentieth annivana ry lheneol il"Openaling Period"), the Clwnen t era t y covenants and agrees to devote the entire building an a conlinuou, basis 1a the opeualion oil retail stones, companable, a s all tha dale l arca ll, to l l c Mission Pnomenada located a t 26832 Orn ega. H ig l way, San Juan Capiitnano, (lalifornia. Hxcapt witt Ito prion wnitlen consenl of tle Agency fan aach instance, which consent may le gra ntcd on wilhheld in t/he Agena,l's ,ole and absolula discretion, the failure of tha Ownen to muse the Pnojeat to ba opcnatad as pnovided Iera in fon thirty 1130) on mone consecutive days shall, a1 the Agency's option, constitute a I]efault heueunden; pnovided, howevan, that tl a Owneu shall not [a in default of this Panagnaph 9 during any peniod d at a ny ail the Owner's tenants are is nnaiiantad i8nom agcrating the Pnajcct due la (i. nequined ou necessar)l renovation ail t/he Impnova nl a n is (pnovided that the period duuin g whiah the I nojec t is not opanatad as a nesult of the nenovalion all d c Improvements shall in no a`ianl exaced ninat,l 1190) daye), on Iii; events of buce majeune as set Pori h in Section 603 hereof. -Ila Clpera tint Peniod shall be extended fon ea a h day 00 a losure garmilled haneunden. 10. 7ananll Aesllrictions. Par icipant shall use the tot, I giosa lea sable building ane, on the Sile in the follavaint mannan; puovic ad, I ovaeven, d a I IN Aga nay's Hxeoutiva Ilinecton in I is an hen so le an( absolute discnelion ma y a pprona minoa daviations from the fa (lowing conditions which ne nequestad by tI Par icipani in waiting and pronidac furthan it Par icipanl oomlllia9 will any E nd a 11 appliaable City nequiramanls in connaalion m ith such deviation: r Tha second floor le, sable building area may le used Jon aVice, pensonal or business semiae t 6litias, an oll cr non re (ail uses as specified in Section q-3.303 of the Municipal (lode fan 1he "Ilounist Commencial 1"TCI di, -trial inaluding, but not limilcd to li c fallowing: ii; Aacounlants, atlomeys, oonsultanti; Iii; Insunanca agencies; viii; Nedical off [aas; Iii ) Hngineeus, anahilcats and plannan; I`i) Aeligiaus, fns to m, I an 3arviac orga nizallions; i1vi) Public facilities; i1vii) fie al esIale offiaas; 11viii) Zluavel agencies; and Ilix) Full sarviac laundrIl a nd dry aloanen business. AITA ICIHME N7 NO. 5-1 DOCIOCr121, H410WOUP94016 (XI Mas saga tl an 111; (xi) Small business, vocational, pi0lossional schools; and (xii) Itinan a is I t roke nag a oflfices. b. Any ncmaining gross leasable building area nal used for the above pugloses shall bo oaaupied ty nolail tenants consistanl viith Nission Piiomcnade in teams of quality of meiichandise and sales volume, will an objeclive and amphasis on genonating local nevanuas, and pno`iiding firsil qualify recognized na lail usans g onenating higl `la lump sales. Maintcnancc. `lfhe Par icipanl shall maintain the impnovemants ll al exisl on the Site from time 'lo time in acaandanae with the Agneemant la be Reaanded Affecting Real Property 'Ihe covenants, conditions, mainlanance obligations and olhan rasliklians of vit iol shall nemain in efface unlil the expinalion oflhe Radevelopmeni Plan, that is until July 13, 2032. Issuance oil Raiaase of Cons l rue tion Clovenani s by l he Agency shall not a filea t Pa W ipa nt's obli g a l is ns under t[ is Secl ion 504. 13. Rights a 1 Acatss. `llhe Agency, fon itself and doll the Clity and olhen public agencies, al tl ain sola risk and axpensa, nesarvas tic night to enlen tl a as rnmon areas on -Ihe S ile on an`l pan l hereof which is owned e r eonl ra l lad by tt o Par icipant, a t all na a sonabla dimes fan IN punpos a of construction, naaanvinuctien, mainilenama, nepain on senike oil any public impnovememi or public facilities localod on the Silo. `l>he Aganay a n ;lush all an public agency exercising sual night afl entry :It all take all neasonable messunes to minimize inlerflcnenaa witl the allaration oil businass on the Si'le and shall piiomptly nepain and nestone any damage caused by sucl enliily to the Sitc an the Impnovements tl oraan. �Iny such ewnl shall t a made only aften reasonable noliae to and consent oil the Parlicipant, and Agency shall indamnilly and I old Partiaipant harlrliess ihiorn any costs, alairns, damages or Iia bilil ies perta in ing to any antny. 11he A artia ip a nl agrees to cooponato m itl the Agency in piiovidin g its o a n sent and sua t ace ass, and acknowledges l hat tic Aga na) l may obtain an administnalive inspaclion miarrant on o-lhen apprapniate legal an ac uitabla namadias to enforae its nig[ts puiisuani to tl is Section 505. 'llhh Sac -lion 505 it all nol be daamad 110 diminish an`l rigl t9 'lhe Aganay, ti a Clity, on any other public agencies may hano viithout nefarance leo I[ is So0ion M. `➢he eights of access sel forth in this Section :10:1 shall remain in efbiat until the a)lpination of the Radevelopmernl Plan. 13. Nondiscriminalion. 'llhe Participant covenants by and lou itself and any suacessons in interest that lhene shall be no disaniminalion against on segiicgation of any peuson an gnoup all pensans on account of nano, colon, enact, religion, sax, manilal slalus, pI ysical or mantal disabilit)l an medical condition, national origin on ancestry in the sale, lease, sublease, tnansfor, use, oaaupancy, lenure on enjoymenil all the Imprailcmenls or the Silo, non shall the Partiaipant illsolil or any peuson claiming undeii on ti nough it establish an perrmit any sue[ piiaclica on pnaatieas ofl disaniminalion an segragalian with naflenenoo to the selection, localion, numban, use on oaaupancy of 1lenanls, lessaa<., suttonanls, sublesseas an vendeas all the ImpnovemeWs or the Site. The foregoing covananls shall nun wil h ti a land. All deeds, leases an contracts vriitl nespecl to the Impnovemenis an the Silo shall aonv in on be subject -lo substanliall`l the 11611owing nondisonimination or nansegnegalion clauses: AT]IACHM ENfl NO. 5-6 DCICcCICI III9219�hi191172199-Cl M a. In deeds: "`llhe gnawee henein covananls by and for himsollon henself, his of hei heir„, exeatitons, adminislnatons, an (I assiNn,, and all pensons claiming unden at thiough IIem, 1I a] Ihena shall be no disaniminallion against on sognegation of, any person of E roup of par, ons on aaaounl of any tasis listed in,ubdivi,ion, la) on,ldl) of9aclian 12999 aIIheGovernment Coda, a: those ba,e, ane defined in 9ac-Jom 17976, 1292(1.1, subdivi:ian (m, and paragraph ill) af,ubdivision (lp; of Section 12955, and Section 12955.2 a8 the Ckwirnmant Coda; in tie !ale, lease, subloa so, transilen, usa, oaaLipa ncy, lenura, or en'oymenl oil the pnarni:e, henein conveyed, non ,hall tha gnantea on any penson nlaiming unden or tl nough him or Ian, e,tablish on pemiit anil pnautiva or praatiaas of disc niminat ion at sa g nega tion with na llenenae to the ; ala cel ion, lou a tia n, numben, use on a ccupano y of tenants, le, sacs, subtenant,, subles,ea,, or vendaes in ti a pnemi: as henein conveyed. TI a llonegoing covenant, shall nun with the land.” b. In leases: "TI a to,: ac hero in aovananl, by and far himselil or hen; a If, hi; on hen I ain;, exacuion, adrnini„tnatois, and a, signs, and all pole an, claiming unden on Ihnough him on hen, and this lease i; made and aaaepiled upon and , ub'ao to the fallowing as ndlition; : ”' lhat them ,hall ba no dli, ci imin a l iori again: t or , egi egation oil a ny penson or gra tip of pei son:, on a ccouni oil a ny ba: i, li:tad in ,ubdiviEion (la, on (ld; oil Soclion 17919 of the Cla i is rnma nt Cla da, as tho, a baso, ane defined in 9 a c l is n, 13916, 12926.1, : ubdi)ii, ion (m, and panagnaph Ill) oil .ubdivi,ion (p; oil 9acilion 12955, and Seation 12955.2 of the Cla`iarnment Clado, in the lea,ing, sublaa,ing, 1ran,ferring, tile, aacupanay, tenune, at enjoym(jnl of the premie: henein laasedl nor stall the le, sea himselll an her,elf, on any pen,on nlaiming unden or through him of hen, a,tablisl on Wrniit any such pnaclice or practice,, of di; crimination of ,egregation v id nefarance to do :election, location, nurnt ar, u: a, an aacupanay, of tenant;, le:,ee,, ,ubles.,ee!, subtenant,, on )iandees in the 1 hemi: es hot ain lea,ed." a . In comlra6 s: " 7I era ; I al I be no di; a nimination a g a in,l on , egnegal ion ail, any pen;an on gnoup of pan;ans on account of any ba,is li,led in ,ubdivi,ion (a) on (ld; ail Seation 12955 oil the Clovermrnanl Code, as thdi:e ba,e; ana defined in Seation: 12926, 12926.1, aubdNi, ion lam. and panagnaph (11; oil ,ubdivision (p) of Section 12955, and Seation 12911.2 of the Gaiiarnmenl Coda, in the sale, lea,e, sublea,e, Inansllen, u,e, oaatil ancy, ]anus, on en'oyment of the pnemisa, which ane the ; tit 'act a8lhis A gneoment, nor ; I all the gnanlea as any pan: an nlaiming undan of II rough hits on her, a,tablish or parmii any prautiaa on practice; oil di,cniminatian on ,egregation Y ith railenenae to the ,election, laaation, numben, u,e or ocaupanay oil lonants, lessee;, ; tit lonanils, , ubles.,ees, at vendee, in tl a pnemisa, henein conveyed. the fonegoing covenant, shall i tin v itl the land]." Tha wianants again,-] di,cnimination, :et 8orh in thi; Seation 506 shall continue in effaal in pa rlla to ity. 14. Hf1ec1 of Violation of 11 a 7arms and Hnovisions of 11 is Agii(ement. The of ligation: and covenants a,'lablishadl in this Agreement, a: ,el farlh in S40tion1 103, 202, Z I73, a a1, � 41, 409, 501 thnough 506, ina lw ive tithe "Clovenam " I shall, v ithout negard to technical alas,, ifia a ion and de, igna I ion, be binding ilon the benefit and in favor of the Aga n ay, it: , ucca, son AVIA( IN M HNT NC. 1-7 Docsoon 7971 f 4v 16/0 23 21 9-00 SU and assigns, as to 1Ihose aovenanls v t iah are far its bt nafit. 11he covenants conlain4d in this Agrt emew sha ll i emain in eilfa cit far the pe 1 iodi specified hei ein. Me Ag( tiny is deemed the bene ficiarM of Ila tarms and pnovieia i : of 1hi; AIS ret me nl and of IN covenant; running mitt tl a land, far nal in it: own nights and Ion the punpose: of prate a ling the iniene; t, of the community and o11 er pE rlie:, g t lia on priliata, in whve fivor nal Ion whose benefit this Agi cement End the covenant; running wilh the land hE va been pnovided. The Agraemenil and 1l t covenant: hone in Shall nun in ft van of Ila Pliancy, wi-lhoul negand tlo wheilhen tl a Agency h,. bean, ne m, in: oa is an ave nar all , nJl land or it to ne:'I -Therein in 1l a Silt or in tl a Communil)l 1]()it lopme nl Pnojecl. Me Agemi j it z ll h, `ia thf nighl, if ti a Ag neamanl or covenant: ane bneaahed, to exenci; t , II righl; a1 d nemediei, and to mainlain any � cel ions or suit; at law an in equi-ly on atlen praper praaeedinge to anfance the cuniq oil .uch brt�ches to which it or any oilhen beneficianias oil Ihi: Agneemenl , rid covenant; m,, 311: e ewillad. IN WITNHSS WHDREOI , the Agenall and Par is ip,, n I have ; ignad Ihii Agneemenl a; of he dal a first : et ilord , I a ve. AT'HEST: Agena 11 Sea ne t, t -A AHPROVHIl AS 'HO FORM: SIr, filing Yoaaa C� nlian &1 Rau -1h, Agena 11 Spe a h 1 Uounse l A CIHNCY: SAN JIJ AN CAI ISTRAN O C IOM M UNITY RDDH'IDLOHMEN7 AGENCY,-, public badil a orpa nate , nd pa litic C]hairnian PAR'HICIPA N'ID: 26755 VERD1100 HIIC, a (h liilorni-, lirniled liability company Mot It,: AMIACHN EN11 NO. 5-8 rXIC9CIUIE 9219,INleI/O, 2, 9114036 AITACHMHNT NO.6 HRFIVA] IIING WAGH AND HtlELIC WORKS RBQUIRHMENDS I. HarrAipaml's Requivements: (1 Obtain the Ina`iailing wage nate fiwrn tle Ilineaton oil lndustnial relations in ace ondana a with L abon Coda So a tie n s 1771 and 1771. (2 Spacibl the appnopriato pnevailing wage nates, in acaandanae vait] IIabon Clade Sect ions 1771.2 an d 1777.1. 1?) 'Ilhe posting i equi: ement is applia a t la fon eaa l as t side. ENCIEPHICIT : II more than one v+iarkaita exists an any pra joat, then the al I linable nates ma)l ba polled at a single location which is noadil`l available to all woi I ens. (H if a viaga rata IL a oraill, classifiaa'lian or type a wonken is not published in the Diiecton's ganaraI pnenailing waQa determinatians, a nequest 1bu a spacial deilera inatian should be made by it awandinj body lo Clhiaf, Division of IJaboi Stathtias and resaanah, P.O. Hox 420603, San Francisca, CIA 94142, at least z I (lays pnior to the ilnojeat bid a(biartisament daile. fll; Notif,l the Hivision oilApp:errlicest ip Standands, Dapartmant of Industrial Relalions. See IJabon Code Seetion 1771.1. (4; lnfarm prime conlnaclons, to the vitant ilewitla, all relevant Iutlia viclk nequinements: N07H: requinemenil itiibrrnia lion ma)l be disseminated at a praaccepU nae of bid confenance on in a cal I ilor t ids or a t a n award of t id a onfe ra n ( C. The put lia v+ionks requinemants ane: (JA; t1 a appnopniato n(iniben of appnentices aro an tl a .ja b site, as set farlh in Ilat on Clode Section 1777.5. (H; wort' a rs' compensat ion a a `ia na ZI o, as set forth in Ilabor Code Sections l 8 tlQ and 1861. (ICI) keep aacurate naaonds at the wonk pariormed on put lia wanki pno'lects, as sat for h in Labon Coda So atic n 1817 . 4U, inspoaIian of pay noll nee ords pursuant to Lat an Coda Statian 1776, an( as sat foil in 9action 16444 �a) of Title 8 of-Ihe ClaIitonnia Coda a1 Ret u]ations. (H and othan nequiroments imposed t `I law. (5: Wlithha ld monies. See Ilabor Clode Section 1727. A'IIT,6 CIHMHN7 NO, 6-1 Docs aC 121219411 M/ola199-aosfl 116) Bnsune Ihat public vianks pnq]ecIi ane not split an ; tparaled into smaIIan wonk aWens or pnc'ccls lou -I he purpgse oil evading Ihe appliaable provisions of Llat on Clade Sacllion 1771. 117 Deny ti a right to bid an public work aantnaats to contractors or sutcorrlractors who have been debaned idiom bidding on public viank; contract,, a: sat lorh in Labor Coda Section 1777.7. 118 Not permit woukers on public worl s Flo wort more than eight hour: a day on 40 hours in a nJl on( a a la ndau vie ek, unit ss a a rn pa nsata d at not les: than time and a I a if as set fori h in Labor Coda & ation 1811. BVIHATION: Iii 'Ihe prevailing viage delerrriina-lian naquires a I ighan vale of pay ilon overima viank than is required undan Llabor Clode Saclion 1811, then that higher oliarlime hale must be paid, as ;Iptcifiod in subseatian 16700(la,il3)(IF) allitla 8 a the Clalillornia (lad( oll liegulwions. (19; Not I a ke a a receive any portion of the woukeus' wag t s or as a ep-1 a fee in connect ion with a public wonks pno�ject, as tat ilor I in Labon Code St a Iia ns 1778 and 1779. Ql0; (lamply wilh those nequinemenls as specified in Llabor Clode Saalions 177618), 1777.5, 1810, 1813, and 1860. H. Contna(itoii a n Sul aonIraelor Requirements. The aomnaalon and subconlnactons stall: 11) Flay not lase than the prevailing viage 10 all workers, as defined in Sealion 16000 of TiAe 8 of the GaliRmia Clode of 14egulalions, and as sell forth in Llabor Clode Seciion,l 1771 and 1774; 112) Clomplil with the prolii; ions of Llabor Clode S actions 1773.5, 1775, and 1777.9 no g a rd ing public wonks jobs i I t s; 1131 Pnovide workeus' aarnpansation co, image as sell Arlh in Llabor Clode Section 1861; 114'.Comply with Labor Clode Saalians 1778 and 1779 regarding receiving a porion of wages or a s ceplana a of a Ila a; (15: Maintain and make available for inspeatian payroll naaords, as set farnh in Labor Clode Saa lion 1776; (16; Pay wort t rs overtime pall, as sat ford in Llabor Clode S t clion 1811 on as flnovided in 1Ihe collective targaining agueemenl adopted by -Ihe Llinealan o8 IndusIrial Relations as ,ell ilort in Section 16200 +la (13; of "Ilillle 8 of It a California Clode of Regulalions; (1T, Clomply with Seation 16101 of 'llitle 8 of the Clahiloiinia Clode of Ragulalions regarding discrimination; (8) Bt sub'lecl 'lo provisions all Illabor (la (It Si atian 1777.7 which specifies d a panaLias impoiad on a conluaclor who willilully fails ilo comply whh praiiisions of Sec -lion 1777.9; ATIIACIHNi 1111` 11 NO. 6-2 DCIC SCIC/ 17 S I l 94 v 161a 2U 99 -oa 8 d and 1191 Clomply witl those u quire ma nt; as s pecific d in flaboi Coda Sections 1810 and 1813; 11101 Clomply witl athe n nequilemenls imposed by law. ATIACHMi EN11 NO. 6-3 DOU C IU / 119 219, Nil d/17 2199 -U V 6 A ITTACHM HNT NO. 7 PROMISSORY NOTH QSei urcd by Do4d a lumil) _, 2009 Clalifornia HCM VA11JUH RECHINHD, the undonsignM 26711 VEADUGO, IJLIC, a Clalillornia limited liability company ("Participant"), having its principal place of business al 26755 Vandugo 91tneat, Suite 200, San Juan Clapisl nano, C la lillorn is 92675, pnomisa s to pay to tha orc la r all SAr JUAr CIAPISTRAINO CON MUNITN ADDIIVHIJOPN HN7 AGHNCIN, a public body, aorpo nate and politic j"Agena�l , at 12400 Paseo Adelanto, San Juan Clapistuano, CA 92675, on at such others place as 1he holden of this I` ata fiiom time to time may dasignale in viriting, in aaaordance with the lbllowing: 1. Aecillah, Participant and Agena�l hada antarad inlo 1ta-1 aertain Owners Partiaigalion P18nacmanl dacled , 2009, ItI a "OPA"; pursuant ilo which the Agamy will disburse to Parlicipanl the Covenant Haanin 1he puincipaI amount oil Nine F undrQd Fiftjj Tlhousand Dollars Q"Principal Amount",' and Ile Par is iparrl is nequiued to construct thereon the ImpuovemeWs and fulfill all the Covenants all a: more fully dascnibed in 1he OPA. All capitalized terms not defined I grain shall have the n aaning set 11or I in the CIPA. 2. Ilefin itionr. ",PIgancy Parlicipation Pa`lmant" means, subject to 1he praiiisions of Section a below, fifty percent 111(11/c: times 1 he t Qt Clpera 1 in g Ina oma in a ?iceis of tl a Pa rtk ipa nt Pueferra c I Aeil urn. "A18ency Refinance Shaie" means, filky peecent (101ra; oil tta Ilislnibutabla Refinanae Proa c eds. "AIgency 91ales SI arc" means, subject to tl a psovisioni of Sections 1 and 4 be ]a vi, twenty- filla percent (I 11/c; of tha Dislmit utat la 91a les Pioceacls. "Diraal Closis" n eans lhoic consliuclion costs paid dinaatly to conliacloms and/ou supplieis in connea tion vaith tha a a n struia tic n a 1 the Impra i ie me n1 s. "Disivit titat IQ Refinance Pnoceads" is defiucd in fioian 3.7 1 clow. "Dislnibutable Sale,i Pioceids" is defined in Sections 3.3 and 3.4 below, as applicable. "Grand Opaning Dale" means the put lial1l announced dale tt a1 i1he Pcojecl is open to the public for I usineis. "Gross Income" n eans all guoss income faom the Project including, wilhouil limitation, cents, a s ra mon a no a maintenance G1 a rge s and othe a sc imbursement s tltiom It c 'l enants. "Nat Opa nal ing Income" ma a ns 1 he a 9 9 ne ga to annual Gioss Ina a rna loss Operating Hxpa n ses. AT BACIIH MHNT r CI. 7-I DOC SCIC/ 119] 114 v 16/02321 9-N & I "Not Refinance Proceeds" means grass nefinanca pnoaaeds minus Refinance Cc 91s. "Clparalitig Hxpenies" means annual actual, "reasonable and austomar}I" costs, fee;1 and expenses of retail dovelopmenls dinocll,l incur -cad bil the l arlicipant commencing upon commencamont of operation of tl a Pno'ect and attnibulable to the operation, mainlenanea, and management of tlo Impra`iemenls including, wiltaut limilalion, reservas for capital aaiponsos, paroling, cleaning, mainlenanea aosls, nepainl and altonations, landscaping, uiililias, nibbish ivamoval, aomler changes, real and personal propert} taxes and assessmcnls, insurance pnemiums and deductibles, iccunitil servicas, a(hlartising, pnomation and publicity, office,;anrlanial, cleaning and building supplies, I he o xpo n sed por ion of it enanl impra �1a me nl a Ila Niances, tananl inn proveme nts and leasing commissiam, onsite management, and a management fee equal to three peraenl 111%) of Gioss lnaama; pnovided, howevon, that all paymenli to parties nolatod to an affllialod with Paricipanl ;hall nol exceed marked rales. Openaling Dxpenses stall nol inalule principal and intanosl on debt obligations or naturn of an on equity or non-cash expenscs, including wilhoul limitalion, depreciation olhen 1Ihan reasonable resonvas for aapi-lal expondilunes Qinoluding, without limilalion, real replacarnant), and/bn tananl allowances and lenanl improvement aoslt or leasing aarnmissrons, 10 1Ihe extent that tholl ane oapilalized. "Participant Capital Ralurn" means the value of tl a Par icipanl's Pneferrod Ralurn a1 nefinancing, as computed in 9act ron 3 A Qa) on at sa k a;1 computed in Sea l is n 3.3 (1c). "Participant Cas1ls" means the total actual aosls incurred by 1Ihe Participant, in acquiring the Side and planning, designing, engineering, financing, conslruating, leasing and developing of the impr(mcmcnts, in accoiudance wi-lh tl a plans and specifications -lo be aalcd upan by the Pgoncy, a;i provided in Ile OPA. The Par icipanl Costs shall include, without limitation, 1he folio vlling : all aastt an fees paid to all aonlnaalam, coils of silc praparalian; the cost of consiruClion of all al the lmpm)iamenls, inaltiding roqurnad onside and offsite impraiiomanls, anal itoolunal, engineering and design fees, nepnoduc-lion aosls, dailaloprnont permits, inspacilion &los changed by any public agenall, general aonlraalon fee, ponforrniance on aomplolian t and pnamiums, aarwrua Jon loan pias and pointe, margage bnokenage fee;i, title insunanco pnemium;i and ondonsamonl costs, surlioy aosls, documenlar3 Iranslen taxe;i, Tenant impnovemants, tcnanl improvemerll allowances, tl ind parte tearing commissions, imunanoo pnemiums, inlcrosl payments accrued in connection wiilh the consinucilion loatl(Is) 'Through the dale of issuanca of the Roloase of Consinuction Covenanli, consulting, insunanco oonsulhlanls and pnoilessional fees (inaluding without limitation legal, accounting, enviratlmontal and financial consulting fees) paid 'lo thind partios witt nespocl to negolialing oll It a CIPP , leasing, pre -opening marl aling aas'ls in aonneclion witl the grand apaning and grand opening costs, atlorno,l lies and ca stls, and expert witnos,i 11eo s and cosis, and olhen costs of litigation and appeal, if any, incurred in connection wiilh litigation against the Agency an Par ioipanl claiming that the C ity and/lon P gancy laildd 1lo oompl)l with CE(JP on athan land use noquinements and any other actual Third party oasts, not included abovo, fon planning, designing, financing, constnucl ing, and del is to ping tho Impra vc menl s wi is l I ave no -1 been paid by the Clit` l and/an Aga n ay, 'lenants or atl an parties and P1l iah ane appnoved ty 'The Aganay in its neasonable discnelion. In addition to the fonogoing, tl a Patlicipanl :if all be entitled to Partiaiganl's fees and overt oad equal to: throe paraenl (13%) of Ilinea( Costs. Fon purposes of as Ieula-ling the "Par icipanl I nefenrod Return", "Par icipanl Closls" will be reduced by (ji) colts incumucd by Participant but neintbunsed by tonanls; Ilii) Not Clpanating Income in an amount that is equal to and not in a?laess of oonslruetien loan intanesl that accrues between the data of Participant's finst mceipl of nental income 11excluding any nenlal deposits: and lerminatrng on the data al issuanca of the Relaala of ClonslnuclJon Covatlanl and (viii) all Claiicnanl Clonsidonation Payments. P TIACHN ENT NO. 7-2 DOC' Oa/1192191Nil a/1172199-[II86 "Pa rl icipant Pnefern d Ra tum" means annual cumulative and compounded ra turn t asa (I on seven pencent X11%,' times the Par icipant (los-is. "Refinance Costs" means all thind pary aosis of nafnanaing including, without limitation, aaaruad tut unpaid into new, prepayment penallies, ),Iia ]d n aintonance pa)ln ants, bank fees and points, naile lock fees, t neal age fees, ha dg a foes, pnemiums ibn lett( rs of ene(1il, guananty payment pnemiums, lenden due diligence fees and oasts, morgage bnakaragc tlo(s, title insurance foes, oscnow costs, leas and pnonail ions, legal fees, and o1 hen Simi Ian costs of nefinanco . "71 ind Party (loses of fila" means all thind park oosls of sale a it the Sita, Pnc ject on any part lheneof and,lon Menial Housing Sales Parcel including, wid aut limilalion, nnallaymant penalties, yield maintenance payments, sut(livision and/or lot line ad,luslment oasts, title insunanae fees, esanow assts, fleas and pnoratia ns, legal fees, tnansferW es and athen sinilancosts. 3. Payment. In lieu alfa stated int(rasl nate and/on nnincipal no payment, subject to the llnovisions of Section 7 below, Partkillanl at all pay la Agena)I the Agency Paricipation Pa)ln (nt 11nom 1` ct Op(nating Income, Aefinarce Proceeds and Sales Pnocee(Is as desarib( (I below and in tha example attached heneto as Hxhi bit A an(I incorFlonated henein 1 y nefenence. In 1I c aaso a Il payments 11nom Net Clperaling Inaan(, suet payments shall to made within sixty Itl(l) dailE of the cnd of Participant's fiscal yeah. Payments (Itis from refinance proceeds on sale shall to paid directly diom esanow at alasing of such sale on refinancing. 3.1 Payments fiien Not Operating Income. In any year in which the Net Openating Innen o Oiaeeds an amount equal to the allplioat lc Participant Prafaried Raturrr, including any accrued but unpaid Par iaipanl Pnelleriad Return and the Par iaipanl Pneferr(d return lllon Ihe Then Curr( nt )loar, II a Participant shall pay the Agena)I Participation Payment. Subject to the provisions oil Section 4 Wow, vis, following a refinancing described in Section 3.2 1 e la vi, the Ago nay ,hall corn) inue to be entitled to receive the Algency Partioipalien Payment mom Net Openaling Income. 3.2 Payments of Ageno y Refinance Pnocea (Is Shane. In the c vernl of a nefinancing, the Agene)I shall be paid the Agency Refinance Shane lased an tl a "Distributable Rofinanae Proaaeds", calculated as follavis: fubtnaot from Net Rafnanae Pnoceads 'Ihe grealen al Jal Paricipant Capital Raturn, which is an amounl equal to the Far icipant Pneilerred Return, calculated, as of tI a (late all the closing, of the nefinancing divided by the new r(finanaing dott aensilant (minimum annual (lett service divided by the new morgage amounts plus arn)I aacnucd and unpaid Paricipanl Pnaleried Return, an +Jbl Paricipanl Costs plus any aeeruad and unpaid Partiaipant Pneforred Aelurn aacniad 1a the (late of the nefinancing, on (a) Pninainal pay off amount of dcbl t Bing ranaid, it any, plus any accrued and unpaid Paricipant Pneferrad Return. To eiilhen a) an 1) or c; may be ad(ed any proceeds to be used for capital axncndilunes to be incurred within lI c fort coming Chir y -six (136; months, and to the a ) tont that marries ane nat expended within such peniod, such excass shall be aonsideoed I]istributable Refinance Pnoceads and Ihe Par iaipant shall nnomptly theneafilen pay to ti e Agency Ihe Agena)I Aefrnance Share atlnibulable to suet exocss. Hxamples of the application of ilhe Ilonegoing ars set loch on Exhibit "A" attached herieto. 3.3 Sale. In 1t a event of a sale olthe She and/or Pnojeat, th( Paricipanl shall nay to ti ( Agency, the Agency Sales Shane based on Dislnibutable Sales Pnoeoeds, ealculated as A llows: ATTR GHM HN7 NO. 7-3 DOCsaCt29ar94iiId/012199-ease The Pan icipant sha 11 dec luat i[ is m the gross gala s pros c edm: [A] "inc I Part} Costs a it Sale; [H] any aaerua d and unpaid Pan icipant's Pneilerre d Rtturn; [CI] tl a gneatt n M ji) the Partiaillarrl's (lalliu l Ratunn, which is an amount equal to 11he Partioipant'i Preferred Return, calculated, as cUhe dale a8 cloning, baled an Par icipanl Closts at cloning; , diiiidad by the t u31cr's (lalliu lizalian plate, on Ilii) Panicipanl Costs at closing; and [D] an amount up to the Pnincipal Amounll accruing simple hitt nes-I at the male of Iwo pemcent 1131/c; per annum from 11he date hereof to 11he date of pa11ment less any Agency Pariaiflation Payment andiloe Algency Refinance Shane plieviously neceive d . 3.4 Sala ail Ila ss Than 100% of Participant Ownanil ip Inlenesis. In the event that theme is a change in the ova n c rs hip in the inl enc st s of a apit al, profits, losses and cash f la m of Par iaipanl (jollheR than a Permitted Iransfen), the Agenc,l may deem sue a tnansac lion a "sale" for purpose s of 3 a a tic n 3.1. 4. (lassaticn alAger�ay Participation Alnlounts. 4.1 Accepu nae of Algency Sales 91 are. U gen tie tnansfar (jothem Ihan a Permiittad Iransfen) M 100% M IIc Pariainanl's ownanslill intcrasl in all ofthe Site andkn Pnojeot, it the Agency aaaeplls Ile Agena3l Sales Stara, then tha Agency Parlicipation Pailments, Agariay Sales Shane and Algency Refinance Shansi Mom Ihe portion sold shall theneafllemilernlinatC. 4.2. Payoff of Pnomisiory Nota. Notwithrta n ding a n )l I1 ing ha ne in to 'Ihe coni nary, an on before June 30, 2035 Participant shall pay 110 Agency an amaunt aqual to the Pminaipal Amount accruing simple interest at the nate of Ivtiio peraent (7%) pen annum hiom the dale heneof to 'I1 c date of payment less Algency Par iaipai1on Payment and,lorAgency Aefinariae SI are previously ;ieceived. In the aunt, after It exancise of Reasonable diligence to ob-lain (lanstrualien Financing, Participant is unable ilo obtain adequate (lonstnuating Financing fan 11he con:ltruclion and complellion a ll the PRolect, Participant shall naturn it c dull amaurit of any Disbunsamants Participant may I ave ne a c ived form I a A I g a ncy and n a i 11 e r pail y shall have any furl hem obligation unden t 1 is Agra emend and t1 is Agneemeni Shall int ma diatc ly 1 ecorrie null and void. Ile of ligations ail this pallagmaph shall be seaurad by a dead of tnust whial will be re a onveyed upon eithem the ji) neo a nda tion of t 1 e Clonsl rucll ion Financing an tic nepayme nt of the Disbunsamants previously made by Alg cncy. 5. Net Opeiiailing Inaoma Report. On oro 1efane sint3l (160; clays foliav1irig tha 47111illation of the Pan icipant'a fi,laal yean during the term og thin rota, the Paricipant shall annuallil piiovide 11he Agency a Net Ope nating Income na pa n for t1 c Pnoja a I, in a form ne a sonably pnescmit a d by 1 he Agency, which shall describe in detail the Net Openating Inaama and all dislnitutions loll that yeah and a statimant and oalaulalians seting forth the amounts, it any, payable to the kganay. The Participant shall also submit to the Aga riey, annual financial m tamants pnepaned and pmeslented fainly in acaandanae wilh 1he pnovisions of tH3 Note. 9uat financial stitamants shall be pnepaned in acaandanae with gcnellally accepted accounting pninciplem and shall to audited by an independent ca n i fie d 11 ul lin a ccounl ing firrn and shall be a ccompaniec I by an unqualified opinion on such financial slatamants groom such firm. The financial statamenls shall include a balance sheat, rta to me nl s oil ops nation, owns n9' equ it y a n c I tail flows for tl a yeaR then a n ded. In addil ion, a schedule of Net Clparating income will Ic presanted as a supplemantal sahadule to the audited financial statements and will be auc itsc in conjunction with Ihe financial stalements 'aken as a AI THA( IHM Hr TI NO. 7-4 DOCS OQ/ 1192194 Ni MAI 22299-0Q 86 whole. To the aartentIh,,tthe nesulls of tie Net Opeualing Inaome raport and this Nole raqu ins that an Agency Partiaip- ion Payment be made, Par iaipant shall make suet pa;lmant within sixty l(W) days following ha axpination of 1Ihc Participant's fiscal yean duping ti a term (A This No e. Agona)I shall promptly advise Parlicipant in tt a event lhal any par )I seeks disclosrine of the Net Openaling Inaorna repari, whathon by subpaena, court anden or otherwise and Par iaipant shall be entitled 110 intenione in orda n lo retain the confidentiality o1 s uch reports. 6. Participant (losts Ropa n . Pari icipant it all pnepane and submil a re port lo Agency of all Pari icipant Coils as of It a data upa n whial the Impnova rn a n is are RIX complete, 75% comp late and 90% aomplote, as cer ified by he Paojeat anchileat, and on he date Partiaipant is antilled to it e issuance al a Re lease of (Ions-lruation Govenants, and annually thoneafien duning the larm all If is Note, concurrently will it a submission of the T e-1 Operailing hiaarna Repor. . 7. Sul (inclination. No-lwilt standing any pnovision expressly an impliedly to the oantnary herein, payment of It a Agency Par icipalion Paymeml and Agena)1 Sa les Shane is o)ipna s ily juniors and subandinate in terms of pniority and payment to the payment al all principal and intones pa)lments and other payment and perlorrniance obligations appnoved by -Ihe Agency punsuant to Slacilion zI lfl of the OPAI that are seauned, from lima to time, by deeds of trust on the Site, the Pra,*to a or any pari thereof, provided 11 at any suet deeds of trust are not addilianal sacunitil for or anoss colla-leralized with any olher obi iga lion aIIhe Par iaipant. It is the intent oil the par ies that to the extant such funds ane sufficient, annual slat t seniice st a 11 be made fra m the Part icipanl's Prelerrud Return. M iscellanea us. Ila) Qovernin g Jaw. All questions with respect to the cons lruation of lhh Note and the nigt is and liat ilities a the partias -lo this '` ate shall I a gaverned bit the laws al the Stala of CIE lilornia. Iib; Binding an Succos carni. Tl is T ato shall inure to the benefit of, and lit all be binding upon, ilhe successors and assigns of each of the parties to This T ate. (1c; A-11 a meys' Fes s. -1i) In any action to enfaraa t1is Note, tie preriailing parly itall be naimbursed by the other part,l ilon , It reasonable attorneys' fees, easels and expenses, inaurred by it in aosls and a?ipanses for tnial, appellate pnoccadings, out-of-aaurt nagatiations, worlouls and setilemenls an for enloncemenl of rights under an)l state or ladara I s-latule, bankJuplay and insolvenaJl proaaedings sual as 11bul not iimitod ilo' seeking retial from silay in a banknuplay pnocaeding. The larm "exp(lnses" moans any expemias inaurred in aannecdon with any al'Ihe aut-of-aaurl, or state, federal or bankruptcy gnocaedings referred la above, including, without limitation, the foes and expenses of any appraisers, consultants and exper wilnesses netained on consulted in aannection with any suet proaoeding. Ilii) The pnevailing partil it all also t e an itled to its attorneys' leas, costs and expensas incurred in any post -judgment paoceadings to aalleal and onilorce the judgrnant. I I is pnoriision is separate and sevenal and st all survive the manger of this 1 ata into any judgment on If is Note. 16 J I A GHM HNI NO. 7-9 DO4 9 0012921S,106/022391 -GOO 6 (i'Ilime oil the Hssenea. ']Iime is ail the essenc( with naspaat to ever)l pnaiIision heneof. (a) Waiiiens by Participant. Hxcellt as otherwise pnovided in any agnaement executed in aannac'lion witl thin 1\ ata, Parliaipant wainas: presentment; demand; notice oildishonon; no'lice of deilaull or delinquenay; nolic( oil accolara lion; notice of pnoles I and nonpa,lmont; notice of coats, expemas on losses and intan sal 1l araon; a nd diligenaa in taking any as lion to collect any sums arising unden this Nate or in anll pnoceading against any all the rights an inlerasts in or to properties securing pal lmaat oil this Note. If Nan-waivens. No previous waivan and ria failure or delay by Participant in acting with nespael to the tarms al lhis 1` ate shall a onstitute a waiver of anal t reach, default, or ilailure of condition undan this Note. A wa iven of any term all lhis Note, on of an,l all the obligwions secuned theneby, must be made in wni1ing and shall be limilad to tl o express viniven lerrris of sual warier. In the event of any inconsistencies betvieen the lerrns of this Tota and ti a tarms all any other document related to the loan evidenced by this Note, the terms allhis T ate shall prevail. q. Secunily ilon Payme nt. r1he sic tinily fon the Agana,l's payment under lhis Promissamy Note A a 11 be the Deed of 71rus1. Failure oil tic Parhicipant 1a make full and timely payment to the Age nay all 1l a Alg ancy Participation payment and/on Agenay Raflnanaa Shane andibil Age ncy 9 alas Shane as and when nequinad hereunder shall aans'liluta an event of "Dallaull" undan the (IPA. 26755 'IDRDUGG, I1LC, a Clalillornia limiled liabilit)l company Ely: Its: AZITAUHM HNI1 NO. 7-4 Dna 1001 Iz , I u 1 d/0J 9 5 9-(W 6 HXHIHIT A TO AT] A CIHMHN 'I NO. 7 DISTRIHiI'IION OF AGENCY PAR7ICIHATION PAYMHNZ, RI HINANCH HRO(IHHDS AND SALH HROUIREDS Dishibution a f Net Agency Harticination Haymeni hlinst, to pa;I Aar iaipant's Aneferrad Return 911 a a nd, to pay any unpai d Ao a rued Harticl ipant Hre lepra d Re turn Any remainder is distributed 901/o to Agency as the Ajjency Haitiaipat'on Hayment and 500 10 Aarticiparll Mitributlon of Agency Mdancc Hroceed: Hirst to pad 1 Refinano e Costs Second, to pay any unpaid Aacn ed Harticipaut Prehrrad Fletuni "Third 10 pay the g>7eatet o l the Part'cipant Capital Return, Participant's Cost, on the principal amount of any do b I being repaid How* any proceed: to be utilized to fund capital expenditure` to Ix incurrec within the forte coming thirty-six months My remaining proceed: shall be distributed 90°/, to the Ag era y as tlx Al Iency Harticipation Haymant and 141/c 10 Bartiaipanl Dhhil ution oil Graisa Sale Hroaaedti Fin,, t, to third pail y and, a r Harticipant's a la sing a s sts Sa cond, to pa y any unpaid Accrun c l Part'a ipant Pneferrad Return Third Bxfoipant's Capita. Return Affch is an amount ex ual to the Harfoipant's Pneferred Return divided by 'Ihe bullan's capita lization nate Four h, to 'Ihe Ag one y up to the Mine ipal Arr count plus ace rt ed sirriple interest at the rate of 2.0% until the time oil sale closing, reduced by any Agency Har kipation Pal lmiant or Agency Refinance Shane pneviausly aeaaivad. Any rarnaindell i9 distributed 250/a to Agency and 791/a to Parlicipanl HXHIBIT A -1 '10 A`1 `IACIF Ml= NT 1` CI. 7 DCICSCIC/17 91 194v 16/U2] 299-0U 8A TIBLE3 E7(AMPLE d F N4 TE PAYMENTS AND PI YIMENTS ,1 T SALE MFACd V t30aII01EROWEST BUILMIG SAN JWUI CA Pill RAMC, CAW i AMA 'l9.9[1 = = xW = YJ>siai = YANI YNJ xud Yev 1l Nei Resmarll Potenl 1( me Inca ie 27D,900 281.700 293,0[ 111,701 316,900 ]29,501 342,86 355,501 370.8C 311,60 Lese:YacenglBCdler'o) i2G.3001 am 111.71101 (1Sm 115.8001 11A50D1 9= 117.86]1 L19m 119.3001 On i ineame 250.611 217,600 278,3C1 211,501 301,10 313,10 321,70G 338,701 :12,30 361,30 (Mere ng Evenln Unrembiased0&1Exp 13 A00I 13 LOC 1) (35,[101 10,1C0 (37.2 O) (38,310) (39.4101) {41,601} (41,1101 (43,101) IdulagwH (1,50 ) (8,601} (6.10) (8,701) (9,001) (1,410) (9,601{ 110,2011 (10.610) (11,00 ) Reserves L1 m CLJlesil am Lm f].1➢PJ = U2 U) Ll EM Um T IaI4 peradmg Ex) ersrs 4( 1.8011 AM jL4M Lam) (4L5X 2M GC L`�jL OM a=4 N I Opera'rsgImaml 201,EIG 714110 233,701 241 AN 213,6 0 214,101 271,201 286,610 2 6,80 310$01 Oft Costs 4,001,901 CownrnlComWanilonPapnerl (91D,OG1) Pa4leP4RCosts 3,651,0 0 Part ipan Prel rnd W m 7.0% 213,570 213,570 213,570 213,SAI 213.5 C 213,5A1 213,570 213,90 213570 213$70 Piper I a IAccnxd ReWry 4,770 NOutahleInore 0 5,961 20,151 21A30 4001 50,510 61,690 73,010 85,90 97530 AgorKyFifflicipaliol Pay7ren 50.1% 0 f1,980) (1D,O5) (14,915) (20.015) 125,2115) (30,115) (36,515} (42515) (48,665) Ponl ipen ReiidualCmhFW 0 2,910 10,065 14,915 20,015 25,265 3GA15 30,515 42.515 49485 memo: Awn led Panccr ant Rel ■ 4,770 0 0 0 0 0 0 0 0 0 Cross Sale Proud 15% Cap rah 4,713,000 [A.] .4 n: of& a =21, Ni I SaN Proce ds 4,496,000 I111 At irud rd Unpaid Padidplra Pd (en d RcNm 0 b j Partil!pan Copil. I Rehm 651 1 Cap mh 3,28e,000 Agliq I Nole Psymer l Vdti.dahle Sr a Proceeds 301,750 Agnel 1 Sd es Shull 25A II 175,438 ForikPer I mile 1278,313 Promissory Note principal 950,000 Aanmd54npleINeres1 1.0'1 19,000 19,000 19,000 19AM 19,000 19,000 19,000 19,000 19000 19,000 Promrsewy Noll Poncq i I d e a1 s It 950,000 CounslslseAccrued-% ploWerest 100000 Gross Amount Owed at Sale 1,140,900 Lass Cue oohs Ayenly Parl'dpa0on Payme Is {231,750 Not Amased Owed to Agency ra Sale 908 250 Pmpandt : Reryrgml on Asa rium. ft. Flenemr' Yeprgl Mat - NAI I Ut Flab 11 IRM. JAR HXH11 11 A-2110 A711ACIF MHNT T CI. 7 DOCSOCl1:9: 1941116!( 27299-0(8(1 TABLE 4 E11AMPLECFSECTION 4,3LOAN PAYOFF, TENO OFYEA( 10 MEMO UMBO-VAQI EROYIIEST BOILONIG 811, JU, N CA F48TRA11 , CALIF0110! Promisiaq Now Prhdpwi i19L.9 11111 U" 11.3 wu 1111111 11111 Will 1k 111[1 Yea 19 Projetl Revemes PrleoliAGronIncome 270,900 281,700 293,000 301,700 316,900 329,600 312,801 356.500 370,810 355.600 Leer. Varaaey3Cole6 n (20,306) 114,100) 114,7065 (15,200) (15,800) (15,500) (17.100) (17,800) (18.510) (19 30D) C9osllncome 256,600 287,800 278,300 289,500 301,100 313,100 321,700 33$700 3.30 386.300 par ling Egnnses Unreenhuns 01 c . (33,000) 434.006} (31,000) 136.100} (37.206) (31,300) gD,401) (46.8001 (418NI) (43 100) 6mnagemen (7.500) (8,00 ) (8,300) (8,701) (8,000) {9,400 (9100) (10,200) (10,801) (11ODD) Rennie L1,M 11m LL= = = 11.3991 = Ii= =I = Teta C pen ling E)4 nses (41,800) (43,30) (44,600) (46,101) (47500) (4 ,000} (50,500) (52,100) (53,710) (55 4w) Net Open liglrlsoms 208,800 214.301 233,700 241,401 253,500 281101 773,200 288.606 MBOD 310900 Clradi oats 4,011,010 C vesarICwWenBoePayment (951,010) Pediopen Coil 3.011 DDI Pertk ipail Preferred Re tom 7A% 213,570 213,570 213,170 213,570 213,570 213,570 213,574 213,5711 213,570 '413,570 PaymerdoFAootadRehao 0 4,77 0 C 0 0 0 0 0 0 101trrpurableMcome 0 5,961 20.130 21,831 40.030 51,20 61,830 T3,031 85,m0 97,311 Agency Pena"paaion Pe Imam 51 0% 0 (2,96) (10,065) (14,915) (20,015) (21,261) (30,8151 131,515} (42,515) (48.661) Pankipm ResiAs Cash From 0 2,980 10,065 14,915 20,015 25,215 30,815 30,515 42,515 4 66 memo: AcanedPad'rcprIRelrou 4,776 0 0 0 0 0 0 0 0 0 Promi soryhclePrAcipal 950,000 Acaued S not Inlennl 2.0 19,000 19,000 19,006 19,001 19,000 19,010 19,000 16,001 19100 19,001 Promisiaq Now Prhdpwi 951.001 fLrreileow cenad Sllmdje Ilan I 180.000 Tad Amuse O4 ed 1,140.001 CuiWadw Agency Panic Ipmion Payrroists (211,751) Nei Amour Owed to Agmq 901251 Piw el by R yes( Monte At abhs, Ir i, Flu ems V qw I oVMa • ticle Cah Rart 1211 I M : al R HXHIHIT A-3 1101 AT11ACH M ET 71 NO. 7 DOCSOC/1351 19'Iv]9/421]9q -09 8 6 A TTAOHM HNT IY O. 8 DHHD OF TRUST WITH ASSIGNME14 l OPl RHN TS (SHORT HCIRIVI] RECORLIINCI RE(jL ESIHD Hid ANII AIH EN RECICIRDIIII] MAIII 110 ANTI SEND 7hIX 8 TA11ENI EN11S TO.- San O: San Juan Capistrano Clomrnunily Radevelopmenl Agena)l 32400 Paseo Adelanlo San Juan Capislnana, CIA 92675 Allenlion: Spica At olia This Line for Recorder's Use 7t is d( currant is amnipt Jkotn ti a pzI Inn ant c f a rararding tlaa pursuant tc Go,iommant & dt It4tion 11,133. 11BED OH TRUST WITH ASSIGNMHNT ON RHNTS lSH CI14T FORM; This DHHD OH TPt 917 is made a s a 9 , 200_ betvioen 26755 NIHRDUGO LIKI, a Clalifa rnia limi'led liability as rnpany Q" Tlnusloii" , vnha se a(I(Iness is 26711 Ner(dul a Slneel, Suite 200, San Juan Clapislnano, Calilorniia 92675, 17171 LH (IOM PAN y (" 1lrusl ea "J , and the SAN JUAN CAP ISI RAINO COMMI N ITY RHDHVHLOIIM ENI A CIHNCY, a public body, as rponate an (I pa lil is iI" Ha nefia is ry"). W17 NESSEIH: That lruMor gnanUt to lnustee in tnust, with powen a 1 sa la, 0 at proper y in tt a Cli-ly of San Juan Ca pis lrano, Clounily of ClnanBa, 9tata of ClaIifarnia, descnit ad as: SIDE HNHIIBIR "A" All ACHED HHRHTO AND MADE A BARI HHRHOH. tagalher with the nen'ls, issues aticl pnofits Iheiieof, subject, howeven, tlo the right, powen and aulhaiily hereinaften given to and aanlaried upon Benofiaiary Io collect and apply such nenls, issues and pnofils fon the purpose of ceauning Illi that cer ain Pnomiscony Node moria par icularill desenibed belavi, executed and delivered pursuant 1lo an Ownan Participation Agraemen-1 t e (ween llpuston and Beneficiary dated as of , 200_ �jlha "Agreement";; a copy of Iha Agreemenil is on file wilh -Ihe Heneficiary as a public neaond. All capiU lijad dermis net dafinecl henein it all have tl a meanings evablished thenefon under the hlgnaemew. This Dead al Trust secures payment under 1t a-1 certain promissory nole dale(I as a 1 , 200 , made bil 'Irus'lor in fa)ia n of Beneficiary in Iha prinaipal sum of U.S. $990,000.00 (the "Pnomissory Node":, and exlensions on nonewah Iteraof viiih 1Ihe balance A the indebledness, due and payable an oeaunence al an event of aces Tera l is ti as defined in -I he Promissa ry Noie, (121 tt a penforman a e a it a ach a gre ememl a l 'Must or incoglonatad by reference on oantained henein, 1Ihe delaull undan any of which Mall constiluie a defaul-1 hereunder, �I3)pa)lrnenls, if any, olherwisa due and payable undan the Al8raamenl, i1d) pailment oil additional sums and inlerest theneon whial may haneafilen be loaned to Tnusten, on I is suacessons op assigns, when a`ii(lanaed by a pnomissary nole on notes reciting that they ane secured by A1ITAICIHMHNI NO. 8-1 DOCS OCI129 2 IS 40(1/0323S 9-6019 J is Dee (I oil Inuit, and (15) perfiorrrlanca undan Hxl ibit "H" which is atV ahed herello and incorporated herein by rafanen ac. To protaol the securi'ly of this Heed of Miusl, and willh raspeat to 11he propertil above described, Irusllor axpn4ssly makes eaO and all oil llhe agreements, and adop'Is and agneas 'lo per8orrrl and be bound by ea ah and all of tl a terms and provisions set forlh in subdivil ion AI, and i1 is mu'lually agreed Thal each and all of the terms zndpmvisicnE cat ilor h in subdivision Boil llhe fic litious deed of lrusl neacnded in Change Cloun'ly AluluEll 17, 19(14, and in all athan counliea Augusil 18, 19(Izl, in the book and a1 llhe page a l Offia is I laecords in the oilfiae ofd a courtly raaordan oilllhe counly when said pI1c11crty is laaaled, nolled below opposite the name ofsual county, namely: aOUN1Y 3COK PAUE COUNPI BOOK PAGE a0U1MY TOOK IAGr a0UN1Y E 00 PAGE A ]ameda 1288 5511 [flings 858 713 Hlacer 1428 379 Tierra 38 187 Alpne' 3 134.31 Laic 437 114 Hlurnas 1d91347 liskiyou 549 762 Mcrarlanc 133 438 Lassen 192 317 Hmerside 3778 347 lolarc 1287 121 8 utle 1331 513 Lc s Angeles 113878 874 Sacrament( 5939 124 low ma 20d7 427 Galaiiers 185 338 Madera 911 136 San Ienitc 394 495 Itanislaus 1979 56 Uolusa 323 391 � Iarin 1849 122 S. Bernardino 4213 748 Jut er 155 585 contra 4484 1 I larl4osa 911 453 S. Arai cisco A -804 5911 Telama 457 183 Gists 11el llcr a 191 549 Mendorm- 9117 99 S Joaquin 2855 283 Trinity 108 595 rlrorade 794 635 Merced 146C 753 S.IuisOtispc 1311 137 Tulare 2534 108 rresno 5952 623 MEd( c ill 93 San Matec 4778 175 Tualumne 177 16C Ulenn 499 76 Mcnu a4 342 Santa E arhara 2065 881 Venlura 2607 237 rlunboldl 891 83 Mcnlereyl 357 239 Santa(Ilara 6624 6114 Ynlo 769 16 In serial 1189 7C 1 Nala 71 742 Santa Oruz 1938 697 Yul a 398 693 ln51c Id5 672 Nevada 363 94 51asta 8Ca 633 Flern 3751 699 Orange 7182 18 San rtego 1994 147774 Series 5 stall inure to and bind the parlies hera'lo, will raspeat to 1he pnopery above descllibed. Said agreemants, lerr111s and provisions conllained in said subdivisions A and B thanaa]I (lidenlical in all counties, and pllin'led on pages] and 4 heneofI ase by the wilhiri rallanenae lhenelo, incorFlora'led herein and made s hart of this Deod al lrusl lin all purllc res as fully as se'I fior h all length herein, and Hanefiaiary may al arge llor a slalement regarding 1l a obliga lia n secured hereby, provided tic charge 1 hellefa n doa c noel exca e d 1 la maximum a l la voted by law. ' the undersigned `➢rusllor, reclues-ls 11 hal a copy of any netiaa a8 defaull and any notice of sale hereunden be mailed to him al his addrass hereinbalore sal floc h. IN WYNNESS R HIDREOH, Tiiusloll has duly exaoutad ti is Deed of Trust as of the (lata fillsl above wlrilllen. "True tot i" 26755 VDRDUGO, 11LC, a Cla lillornia limilled liabilit,l aarnllany Its: A ATAC NIM ENI NCI. 8 -2 DC ICE CIC/13S] 19,Iv 19/0 ' U 99 -0(I E6 EXHIBIT A TO AW ACHMHr T NO. 8 LHCIAII DESCRIPTION Lot 4, of Ira a 3 3 d, in he City o8 San Juan Clapistnano, County of Onanga, Stai e of California, as pen map 1e corded in Book 11, Page 23 of Miia ellaneoui Map, Rea a ndj a n Onanga Clounty, California H)l F MIT A-1 TO AI'II7AICHM BN -H NO. 8 DCICS CI013 9219elNi Id/1122199-[1186 EXHIB I B TO A'ITACHMHNT NO.8 RIIIHR TO DHED OH MUST Hxhibit B to Deed oil7nust 41h Assignment of Renis doled as a 1 , 200^ ("l he "Deed of `➢rust"), exeautecl by 26755 Nardugo L11C, a California limiled liatility company, , as "'1Imisior", la _ Company, a Claliloania coUlonation, as "Tnustaa", fan 1Ihe benefit ante San Juan Clapistoano Clommunil,I Radevelopmeni Agency, a public Cody, oarnonWe and po litic, as "Hanofiaiary". 1. DHFAUIIR A default oo baeaal under any oil tl a follawing it all, al Benaficiaryl's option, cons lituto a default t nder this heed of Tnust: Ila) A default under 'Ihail carain Ownen Palhicipalion Agneemeni, aaieculled by 'Ilnt si on a s Par icipant and Hone fia is ryl, a s Agena, I; Iib] A default t ndcn any oil cr (Iced of Inuit ancumbening II a Silo. 2. IJUB CIN SAIIB CIM HN(II MHRANCs. In the oiianl of any Tnanifan (as defined I a k vos) of - he Site, an any por is n the neol or into nas'I It c ra in, Beneficiary shall have the at solute nig I t a l its oplian, without paion demand a n notice, to dealare all sums secured hereby immedialiely due and payable. As used herein, It a term "'Iransfen" means and inalt des the dinao or indirect ;ia la, Inansfar, conveyance, marlgaga, furhen encumbrance, assignrnanl, or athan alienalian of the Site, an an,l pc rlion ll encof oo intonest tl arain, what} cn volunilary, iwia lunla% by apara Tian of law or olherwi,ia, Ila execul ion of any insl aliment land sale coni nacl, sales agneern out a n similar insi ruiment affa al ing all ora por ion althe Sila, granting of an oplian to purchase any portion of or inlenest in the Sile or an,l into nosl therein, on the lease of all or it bs Ianl ially all of the Site a n of all or it I stanl ially all of tt a irnllnovements silualed on ti a Site. Failune of BeneficiaDl tc exaraise the option to declane all sums soot red honeby immediately due and payable upon a Tlianslen will not constitute waivan of the right to axencisa tl is optian in the aiianl olan,l subsaqt and Rianslen. HXHIHI"ll H-1 V] ATIIA(IH M HNT NO. 8 DCIC'CICI1191194vifl/aA199-406 SIAITEI OF OAIIIFORT IA .1s. CICIUNTN CIF Cln , before me, , Notary Public, (Fri rit flame of Notary Hut Iic) pa nson a Ill a ppeaned who proved to me an the basis of latisfactory avi(lence to I a the pensanQs) whose name]s is fare subscrlil ad to the witl in imtrument and acknowledged to me that hallshe,lthey executed the sari e in his/heltltl air authonized aapacilyIias;, and thal by his/Ihaaltheh 5ignatura,19an ti a insOun ant ti a personQs;, on ti a entitil ugan I of alf a it which the parson -Is acted, exeauled the instrument. I cer illy under PHNAL`➢Y OF PaWJUIIY under the laws of tic State of Galifa rnia tiat tic fa ra ga ing pa nagnaph is ttlue a n (I a orrea t. WIITNESS my hand and offraial seal. Iiinature iifNatary But Iia ORMONAI1 Thoull tle data telami is not neg0rad by lard, it may prov( ialuable to porsots ralyin€ an Ile doaumant and Gould pra)ieit fraudulent ra attacl rr cat of this form. CIAPA CII711 (ILA IMED B 71 SKIN ER DESUHIPTIOr OF A T IACIHED DOCIUMEND ❑ Individual ❑ Clorpe ra to Clffica r 7itle(s) Title Or T1Ipe Of Document ❑ Partnar(s) ❑ I imita(I ❑ Ga nera I ❑ Mtornay-In-Faat ❑ Trustae(i) ❑ Qua rdjail lQarsorvatar Numl-IT OfIatos ❑ Cltha r: 9 igna r is rd pres en ting: Name Oft I irson(s) Or Hotit71(ios) Do to Oil D(cumaNis I iMner(s) Ott o r Tl an Name I Al oue DOCS OC/ 12!1219 41 1111/012 V 9401(l STAN] ] OF CIAIIIFORNIA S9, CICIL NT -I CIE On , before rna, , Nolar;p Public, (FrintIla me afNetary Hiitlic) panianall�l appeaned who proved to me an 1he basis of as lisfacllonl a) idance lo I a the pansan(a) whose rlama-Is; is,lara subscnibad to �Ihe witl it in>tlnumenl and acknowledged to me ti at Wshe,Ilhey execulad the same in his,lhenitl air atltl ouized c apacilyijias;, and ]Thal by his/lhamMeiii signaluna js, ar ti a insllnurnanl ti a pellson(s;, on tl a amity upon bahalf all which IN person -Is ached, exaauled the inslrumenl. I cer ily unda n PHNAL HY OF PARK MN undeii the laws of tie Stale of Clal ifornia tl a t 1l e fa na ga ing pa nagtiaph h trlae a n cl c orrec t. WIITNESS my hand and ofM is l seal. attire it f Nn Lary F u OP710NAll Though tl a data t clams is not Hegt ire by law, it nay pHove i aluabla to pa H: ons Relying an the doaunnant at cl Gould prevent I frauds let t raattacl ntent of thin form. CIAPAIC]'MY CLAMMED B1I SICINER ❑ It dividt a 1 ❑ Corporate afftcar Im ❑ lartner(5) ❑ [ Attoretey-In-Fant ❑ Tru stae(n) ❑ Guardian/Can>tary&tc ❑ (Al a:: Signaii it rapncsenting: Name OH Pa rsa n(s) Or Ex ti y(ies) DO(l 9 0C/129219,I)i ltl/0]2799401 6 Limited Gamna] INSCRIPTION OF AITTAIGHEII DOCUMENT Title Or T311e Of DIICllmenl Nomt or Of D &®as Date 011n caumeats s iIna r(s) Otha C han Nan c(I At a n e Y C[AM 0 S, N J L P I I CJ PIS7N A1'0 .. ....... . ............. .......................... ... ...................... ..: C,.. ..... 1y Rcdc-1,pmert.l g... :. . z V Q7711 .I 3 n a t .I Cni 71 ni .I _I msmtmttsN.l �mzsE Sxi:3ntixt»sn ° ten. 4F Sf 11 JUAN T1 PISTF, M4 -I h 0111RICATION OR MRSTING OR ROTEN71AL Ih THROST EIAh JUAN CAPIS7RA6 O RBDH% SLOPMEN7 AG9NCY The Board cif Dinecians crl San Juan Capislnana Cammunily I'ledevelapment Agency will rrieGl al 6:30 p.m. an 1 uelsday, Rcbnuaryl 17, 2009, in the City Cauncil Clhamben in City Hall, to consider: "Cansidera-lian ai RcAslians ila Own(in Rarticipa-lion Aclncelrrlelnt 110 RnoNddel Red wilaprricin-1 Assiistanice 110 11hei Pasela Dei Veirc uda Prajucll - il.'167155 Veird uG1o, LUc)„Ciiy aauncil Rniarilly � a. '19A” — Hlelrrl ha. 02. III you t avo specific ihougt is an cancorns regarding Itis ilerm, you a11e encclrinaged -lo participate in This decision making pnacess. Yau can cammunicate with the Bcia11d of Dinectam through ccmuespandencEl addnElssed -l0 the Baand andAau by abElnding 1ho mEleiing and spoaking is thEl Hawid during thEl public meoting. ClaiirespondencEI nEllaied 1a this i'lerri must be 11ElceJivEld all thEl City Clenk's office by 12:00 p.m. an Tuesday, FHebruary '17, 2009 la allaw lime far the Board 1a cansideln its content. If you would like tc1 sp(iak at 'It a meeting, please carriplella a yellow "FRequesi to Spoak'/ faiim found inside the enlnance to thEl Council Clt ambar. This foam is sunned in al the slaftl table, jusl in fnant of 1ho Council dais. You will be callod -lo speak by the Chairman when the item is cans ideread. Yau have iieceivod this notice at 1ho ii(quest o'l thEl Clity staff melmbeu nouglas D. Dumharl, Bcanamic DElvelapmenl Managon. You mail contact -It a1 slafl member a1 (949) 4z 3-6316 wilh any quElstians. 7 hE1 agElnda, including agenda www.sanivancapistnanaxinc. If 51au agendas anE1 pasted to thEl web sillo cilyclE1nkCaD_san0uan can istnana.cinc . Mug Monat an, MMC Clity Clerk reparis, is available tc1 you an aun web side: would like) to subscribEl to neceive a notice whEin plElase make that neques'l by sending an e-mail lo: ac: Eric Allman; Doug las C. C umhart, Economic 1I0vedclpmenl N anagen 32411 Plasieo Aldelanla • San Juan Capislram a California 92671 (1� 9) � 93.117:1 0 Printed an 100% recycled paper