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First Amendment To Agreement For Disposition Of Real Property Between Town Of Los Gatos And Villa Vasona, LTDRECORDING REQUESTED BY: TOWN OF LOS GATOS WHEN RECORDED MAIL TO: =Y Town Clerk Town of Los Gatos P.O. Box 949 Los Gatos, California 95030 NO FEE - Gov. Code Sec. 6103 T., C_i: wK AG R: IHH:. REC: 3 1- 07 10L72613 FILED FOR RECORD AT REQUEST OF - ., _ Jaiu, j SEP 29 12 43 Pit '89 OFFICIAL RECORDS SANTA CLARA COUNTY LAURIE KANE RECORDER L 114 PAGE 198 BETWEEN TOWN OF LOS GATOS AND VILLA VASONA LTD DATED SEPTEMBER 28 1983 By this agreement, made and entered into this 5th day of September , 1989, the Town of Los Gatos ( "Town ") and Villa Vasona, Ltd. ('Developer ") hereby amend their Agreement for Disnnshinn of PrnnPrty DntPrl CantPmhAr )Q toQi 1. Section B.3. is amended to add: It is agreed that pursuant to Section B.1., B.2. and B.3., the amount due from Developer to the Town as of the date of this Second Amendment is as follows: Computation of amount due - 50% of syndication proceeds - B.3.a. $318,000.00 74% syndicated (50% x $636,000) Unsyndicated portion - B.3.b. 26% x 10% x $4,116,000 107,016.0 Sub -total 425.016.00 Syndicated interest owed 49,384.76 Unsyndicated interest owed 39,125.85 Total amount due 513.526.61 Payments made to date - Close of escrow (Sept., 1983) 50,000.00 Payment at Final Closing (April, 1985) - syndicated (74 %) 23,000.00 - unsyndicated (1 %) 4,116.00 Payment (December 22, 1988) 50.000.00 Total payments received 127,116.00 Net amount owed 386.410.61 Interest payment due September 1, 1989 49,384.76 Net loan amount 337.025.85 1114PAGE I J � The net amount owing September 1, 1989 of $337,025.85 shall be paid in annual payments of $33,346.74 commencing September 1, 1989. Although Developer anticipates the payments to be funded from Villa Vasona project Surplus Cash, Developer will cause the $33,346.74 payment to be made to the Town by September 1, 1989 and by September 1 of each subsequent year, whether or not there is-sufficient Villa Vasona project Surplus Cash. The interest rate is the Town's average annualized investment rate from September 28, 1983 to present which equals 8.75 %. Interest on the $337,025.85 shall commence with the payment due dates of the original syndication. Therefore, interest due December, 1988 is accrued based on the schedule included as Attachment A. All interest due as of December 1988, for the interest from the syndication will be paid to the Town with the first installment payment due September 1, 1989. Therefore, the first annual payment will include a principal payment of $33,346.74 plus an additional payment of $49,384.76 for interest accrued to date, for a total of $82,731.50. All subsequent annual payments will be based on the schedule attached as Attachment B. The annual payment will be pro -rated between principal and interest based on interest of 8.75% compounded annually. In the event of the sale, transfer, assignment, voluntarily or involuntarily, in whole or in part, of all or any portion of the Villa Vasona project, or the assignment or transfer of any interest of a partner whether a general or a limited partner, in the project, all outstanding principal and interest due under this section shall immediately become due and payable. 2. Pursuant to Section C.5., the Town accepts the removal of Jack W. Sheehan as General Partner and the appointment of PMG, Incorporated, as a new general partner. 3. Section C.7. is amended in its entirety to read: With the written approval of the Town (a) Developer may refinance any outstanding mortgage on the property or (b) upon payment of all amounts due Town pursuant to Section B. as set forth in Attachment B hereto or sooner at Developer's option, and payment of all amounts due on the currently outstanding first mortgage on the property, Developer may place new encumbrances on the property. Pursuant to (a) and (b) above, however, no new encumbrances may be placed on the site at any time after forty -five (45) years from the date of this amended agreement. 2 L 114PAGE 200 4. Section C.8. is amended in its entirety to read: Reconvey the site to the Town at the Town's option, to be exercised as stated herein sixty -five (65) years from the date of this amended agreement for the sum of one dollar ($1.00) plus all transfer costs. Said conveyance shall include any and all improvements then existing on the site, free of all encumbrances, but subject to all obligations arising from oeration of the project except those personal injury and property damage obligations not covered by insurance. 5. The Town and Developer agree for the purposes of Section I., Accounting, the total cash investment in Villa Vasona is $1,594,787. 6. Section L. shall be amended in its entirety to read: Sixty -five (65) years from the date of this First Amendment, Developer shall reconvey the site to the Town, at the Town's option (to be exercised as stated below), for the sum of one dollar ($1.00), by good and sufficient grant deed, with the Town paying all transfer costs. Said conveyance shall include any and all improvements and fixtures then existing on the site, free of all encumbrances, but subject to all obligations arising from the operation of the project except those personal injury and property damage obligations not covered by insurance. No improvements or fixtures installed on the premises at any time during the sixty-five (65) years may be removed by Developer (except for replacement purposes) without the written consent of the Town. 7. Section M.4, is amended to change the address for notice to Developer to: Villa Vasona, Ltd. c/o PMG 5855 Topanga Canyon Boulevard, Suite 300 Woodland Hills, CA 91367 8. The Town and Developer agree to a Conditional Assignment of Partnership Interests dated September 5, 1989 for Security on the outstanding balance of $337,025.85 owing to Town. 9. Except as specifically amended herein, all other terms and conditions of said Agreement for Disposition of Property dated September 28, 1983, shall remain in force and effect. 3 114 PAGE 201 10. Section M.8 shall be added to read as follows: E. Reports required to be filed with the U.S. Department of Housing Urban Development shall be filed concurrently with the Town. Villa Vasona, Ltd. LE M President Town of Los Gatos By: oanne Benjami Mayor STATE OF CALIFORNIA ) ss: COUNTY OF SANTA CLARA) On his T � day of n the year 19�, before me, Marian V. Cosgrove, own Clerk for the wn of Los Gatos, personally appeared Joanne Benjamin, personally known to me to be the persons who executed this instrument as Mayor of the Town of Los Gatos, and acknowledged to me that the Town of �gsOCIWos executed it. , n CORPORATE ACKNOWLEDGMENT Stateof California Onthisthe 29 dayof Auctust County of ss. Rnhhi the undersigned Notary Public, persoNally al 7120 122 Charles K. Gunn personally known tome proved to me on the basis of satisfactory evic to be the person(s) who executed the within instn President behalf -or on named, and acknowledged to me that the corporatil WITNESS my hand and official seal. r*�g 61.itr Notary s Signature NATIONAL NOTARY ASSOCIATION • 23012 Venlura Blvd. P.O. BOx 4625 W, 4 ATTACHMENT INTEREST CALCULATION SYNDICATED `Nov 86 principal interest 87,500.00 7,656.25 Nov-87 145,000.00 12,687.50 Nov -88 182,500.00 15,968.75 Dec /22/88 245,000.00 1,292.12 principal payment 12/22/88 - 50,000.00 interest 12 -23-88 to 3 -31-89 4,627.91 calculated on 195,000.00 interest 4-1 -89 to 6 -30-89 4,253.94 calculated on 195,000.00 interest 7 -1-89 to 8 -31-89 2,898.29 calculated on 195,000.00 UNSYNDICATED principal interest 107,016.00 - 4,116.00 balance due 102,900,00 Apr -86 102,900.00 9,003.75 Apr-87 102,900.00 9,003.75 Apr-88 102,900.00 9,003.75 Apr-89 102,900.00 9,003.75 'May -Aug 89 102,900.00 3,110.85 TOTAL INTEREST OWED 88,510.61 INTEREST DUE 9/1/89 49,384.76 INTEREST INCLUDED IN LOAN 39,125.85 TOTAL INTEREST OWED 88,510.61 L 11 4 PAGE 203 VILLA V VASONA L INTEREST DUE 9/1/89 49,384.76 INTEREST INCLUDED IN LOAN 39,125.85 TOTAL INTEREST OWED 88,510.61 ATI'AC1LME.*fi' B 1 11 i4rnrr ') AA . I LjZZ1NUL NV 1 I � 337,025.85 ual into ' rate 8.75% term ) 20 yment 33346.74 I yment ent rind interest balance be bal 337,025.85 1 33346.74 33,346.74 0.00 303,679.11 2 33,346.74 6,774.82 26571.92 296,904.29 3 33346.74 7,367.61 25,979.13 289536.67 4 33,346.74 8,012.28 25334.46 ?81524.39 5 33,346.74 8,71336 14,63338 272,811.04 6 33,346.74 9,475.77 23,870.97 263,335.26 7 33,346.74 10304.90 23.041.84 253.030.36 8 33,346.74 11,20658 22,140.16 241,823.77 9 33,346.74 12,187.16 21,15958 229,636.61 10 33346.74 1325354 20,093,20 216,383.08 11 33,346.74 .14,413.22 18,93352 201,969.86 12 33,346.74 15,674.38 17,67236 186,295,48 13 33,346.74 17,045.89 16300%5 169,24959 14 33,346.74 18537.40 14,809.34 L50,712.19 1 S 33,346.74 20,159.42 13,187.32 13055277 16 33,346.74 21,92337 11.42;.37 108,629.40 17 33,346.74 23,841.671 9505.07 84,787,73 18 33,346.74 ?5,927.81 7,418.93 58,859.92 I 19 33,346.74 28,19650 5,L50.24 30,663.42 20 33,346.47 30,663.42 2,683.05 0,00 totals 666,93453 337,025.85 329,908.68 L 114PAGE 205 . CONDITIONAL ASSIGNMENT OF PARTNERSHIP INTERESTS THIS CONDITIONAL ASSIGNMENT OF PARTNERSHIP INTERESTS (the "Agreement" or the "Security Agreement ") is made as of this 5th day of Sept. 1989, by and among TOWN OF LOS GATOS (the "Town" or the "Secured Party "); and PMG, Inc., a Texas corporation ( "PMG"), E. M. Schaffran and Co., a California corporation ( "Schaffran ") and PMG Housing Partners 1983 -IV, a California limited partnership ( "Housing Partners ") (hereinafter, PMG, Schaffran and Housing Partners may be referred to as the "Debtors "). W I T N E S S E T H: WHEREAS, PMG holds general partner and limited partner interests, and Schaffran and Housing Partners hold limited partner interests, in Villa Vasona, Ltd., a California limited partnership (the "Partnership "), as such interests are set forth on Exhibit A hereto; WHEREAS, as of October 3, 1983, the Debtors (together with a third party who is no longer a partner of the Partnership) entered into a certain First Amended Agreement and First Amended Certificate of Limited Partnership pursuant to which the existence of the Partnership was continued, which First Amended Agreement and First Amended Certificate of Limited Partnership was amended by a certain Amendment to Partnership Agreement, dated April 15, 1985 and a First Amendment to Villa Vasona, Ltd. First Amended Agreement and First Amended Certificate of Limited Partnership, dated August 31, 1987 (the First Amended Agreement and First Amended Certificate of Limited Partnership, as amended, shall be hereinafter referred to as the "Partnership Agreement "); WHEREAS, as of October 27, 1982, the Partnership and the Town entered into a certain Agreement for Disposition of Property pursuant to which, among other things, the Town sold certain real property to the Partnership (the "Property "), which agreement was supplemented by first and second amendments thereto (the "Original Disposition Agreement "); WHEREAS, as of September 28, 1983 a restated Agreement for Disposition of Property (the "Disposition Agreement ") was executed and recorded in Santa Clara County which included all relevant provisions of the Original Disposition Agreement; LIIVACE 206 WHEREAS, as of the date hereof, the Disposition Agreement was amended, pursuant to a First Amendment to Agreement for Disposition of Property (the "First Amendment "), to provide, among other things, a revised schedule upon which the Partnership is to pay the Toum =the amounts due the Town under the terms of the Disposition Agreement, as amended; and WHEREAS, in order to induce the First Amendment, the Debtors deliver this Agreement, granting all the partnership interests of Partnership, as evidenced by or Agreement. the Town to have agreed to the Town each of the ;rising unde execute and deliver to execute and security interests in Debtors in the the Partnership NOW, THEREFORE, in consideration of the mutual premises, covenants and promises contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Debtors hereby agree with the Secured Party as follows: 1. Definitions. All terms expressly defined shall have the Partnership Agreement. referred to herein but not meanings ascribed to them in the 2. The Obligations. Pursuant to the Disposition Agreement, as amended, the Partnership has agreed to pay to the Secured Party a net amount of $337,025.85 (together with interest thereon at the rate of 8.75 %, compounded annually) in twenty (20) annual installments (the "Obligations "). 3. The Collateral. To secure the complete and timely payment of the Obligations, the Debtors hereby assign, grant and deliver to the Secured Party, and agree that the Secured Party shall have security interests in each of the Debtors' respective general partner and limited partner interests in the Partnership, whether heretofore or hereafter acquired, including all of each of the Debtors' respective rights, title and interests in the Partnership and any successor partnership and all of each of the Debtors' respective rights and interests in and under the Partnership Agreement, as amended from time to time, and the proceeds of any of the above (collectively, the "Collateral "). 4. Financing Statements. At any time and from time to time, upon request of the Secured Party, each of the Debtors will, at their respective sole cost and expense, give, execute, file and /or record any notice, financing statement, continuation statement, instrument, document or agreement that the Secured Party may consider necessary or desirable to create, preserve, continue, perfect or validate any security interests granted hereunder or which the Secured Party may consider necessary or desirable to exercise or enforce its rights hereunder with respect to such security interests. Without limiting the generality of the foregoing, the Secured Party is authorized, and shall have full - 2 - L 114PAGE 207 power and authority on behalf of and in the name of each Debtor, to complete, execute, sign, acknowledge, swear to, file and record any financing statement, continuation statement, instrument, document or agreement evidencing the security interests granted hereunder;-.pcyto correct or complete, or cause to be corrected or completed, any financing statements, continuation statements or other such documents as have been filed naming the Debtors as debtors and the Secured Party as a secured party. 5: Representations Warranties Covenants and Agreements. (a) Each of the Debtors as to himself represents and warrants that: (i) each of them owns the percentage interest in the Partnership that is set forth next to their name on Exhibit A hereto; (ii) each of them has the power, authority and legal right to own his property and carry on the business now being conducted by each of them and to engage in the transactions contemplated by this Agreement; (iii) this Agreement constitutes a valid and legally binding obligation, and is fully enforceable against each of them in accordance with its terms; and (iv) to the best of his respective knowledge, information and belief, the execution and delivery of this Agreement will not conflict with or result in a breach of the terms or provisions of any existing law or existing rule, regulation or order of any court or governmental body binding on or affecting them. (b) The Debtors each represent that: (i) there are no other partners of the Partnership except those listed on Exhibit A hereto; (ii) they are now the legal and equitable owners of their respective interests in the Collateral and that their respective interests in the Collateral are free and clear of any liens, pledges, encumbrances or agreements whatsoever placed upon the Collateral by such Debtors; (iii) they have the complete and unconditional authority to pledge their respective interests in the Collateral to the Secured Party without the consent of any other party; (iv) they have no notice or knowledge of any facts which will impair the validity of the pledge made hereby - 3 - L IIVAGE 208 or thw validity of the Secured Party's security interests in the Collateral; and (v) they have delivered to Secured Party a true and correct copy of Partnership Agreement and all amendments thereto. (c) The Debtors each represent that the Partnership Agreement has been duly authorized, executed and delivered by such Debtors, is in full force and effect, has not been amended, and there exists no default or any event which, with the giving of notice or the passage of time, would constitute a default by such Debtors under the Partnership Agreement. (d) To the extent such matters are within the control of the Debtors, the Debtors shall cause the Partnership to conduct its operations and to manage, protect and preserve its assets so as not to diminish the value of the Collateral. (e) By execution of this Agreement, the Secured Party does not assume any of the obligations of the Debtors including, without limitation, any claims that may arise or exist under or in connection with the Debtors' obligations under the Partnership Agreement; the Debtors hereby indemnify and agree to hold the Secured Party harmless from any obligation or liability of the Partnership Agreement or the Debtors' obligations under the Partnership Agreement or the Debtors' operation of the Partnership or of the Partnership's property. (f) The Debtors each represent and warrant that they will not sell, transfer, pledge, encumber or grant a security interest in the Collateral to any party except in the event all amounts owing under the Disposition Agreement, as amended, are paid in full. 6. Event of Default. (a) An Event of Default shall be deemed to occur upon (i) the Partnership's failure to make any payment required by the terms of the Disposition Agreement, as amended, within thirty (30) days of the due date thereof, or (ii) receipt by the Partnership of notice from the holder of the first mortgage loan on the Property that an event of default has occurred under the terms of said loan, and such event of default is not cured within the time period provided for such cure. Notwithstanding the foregoing, if any payment required by the terms of the Disposition Agreement is not received within thirty (30) days from the due date thereof (A) a late charge of 1.5% of the overdue payment shall be imposed and (B) the overdue payment shall commence to accrue interest at the legal rate. L 114PAGE (b) Upon the occurrence of an Event of Default, as defined in Section 6(a), above, the Secured Party or its designee shall be deemed conclusively to have taken possession of the Collateral and at its option it may: (i) take and keep the Collateral, free from any claims of the owners of the Collateral, in full satisfaction of the obligations of the Debtors; (ii) sell, assign and effectively transfer the Collateral either at public or private sale, at its option, without recourse to judicial proceedings and without either demand or appraisement of any kind, both of which are expressly waived; (iii) proceed by way of appropriate judicial proceedings to have the Collateral sold at judicial sale, with or without appraisement; (iv) seek an injunction of the prohibited action, if appropriate; (v) pursue any other available legal remedy, subject to the provisions of Section 18 of this Agreement; and (vi) require the withdrawal of the Debtors from the Partnership and the substitution of such other Persons as general partner(s) and limited partner(s) as the Town shall designate. (c) In the event the Secured Party elects to sell the Collateral pursuant to Section 6(b)(ii) above, Secured Party shall apply the proceeds to payment of: (i) the expenses of such sale, including the actual cost of publishing, recording, mailing and posting notice thereof; (ii) all sums due to Secured Party under the terms of the Disposition Agreement, as amended; and (iii) the remainder, if to the Debtors in proportion Partnership. There shall be part of the Debtors to cover proceeds. any, to PMG for distribution to their interests in the no personal liability on the any shortfall in such (d) It is understood and agreed that if an Event of Default as defined in Section 6(a) has occurred, the remedies set forth in this Section 6 (other than Section 6(b)(i)) shall be cumulative and the Secured Party may exercise any such remedies as it elects to pursue. - 5 - L 114 PAGE 210 7. Charges Against the Collateral. The Debtors will pay, when due, all taxes, assessments and other charges lawfully and validly levied or assessed upon the Collateral or any part thereof, and the Debtors will pay any and all fees, costs and expenses, cX.- whatever kind and nature, which the Secured Party may incur in filing public notices, and the charges of any attorneys whom the Secured Party may engage in preparing and filing such documents, making title examinations and rendering opinion letters, as well as expenses incurred by the Secured Party, including reasonable attorneys' fees, in protecting, maintaining, preserving, enforcing or foreclosing the security interest granted to the Secured Party hereunder, whether through judicial proceedings or otherwise, or in defending or prosecuting any actions or proceedings arising out of or relating to this transaction, promptly after the Debtors shall have been notified by the Secured Party of the amount of such fees, costs or expenses. 8. Discharge by the Secured Party. At its option, the Secured Party may discharge taxes, liens or security interests or other encumbrances at any time levied or placed on the Collateral. The Debtors agree to reimburse the Secured Party on demand for any payment made, or any expense incurred, by the Secured Party pursuant to the foregoing authorization. 9. Waiver. Failure of the Secured Party to exercise any right or remedy under this Agreement, or otherwise, or delay by the Secured Party in exercising same, will not operate as a waiver thereof. No waiver by the Secured Party will be effective unless and until it is in writing and signed by the Secured Party. The Secured Party shall have no obligation to resort to the Collateral or any other security which is or may become available to it. 10. Governing Law. This Agreement, any amendments or replacements hereof, and the legality, validity and performance of the terms hereof, shall be governed by and enforced, determined and construed in all respects in accordance with the internal laws of the State of California (i.e., the laws other than those relating to conflict of laws rules) applicable to commercial contracts, transactions and obligations entered into and to be performed in California. 11. Binding Effect. This Agreement and the rights, powers and duties set forth herein shall be binding upon each of the Debtors, their heirs, representatives and assigns, and shall inure to the benefit of the Secured Party, its successors and assigns. 12. Severability. In the event that any provision of this Agreement is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any provision hereof which may prove invalid or unenforceable under - 6 - L 114 PAGE 211 any applicable law shall not affect the validity or enforceability of any other provision hereof. 13. Notices. Notices required or permitted to be given under this Agveement shall be in writing and shall be deemed to be sufficiently given when either (a) hand - delivered and a receipt obtained therefor; (b) delivered by overnight delivery service so long as a receipt is obtained therefrom; or (c) sent by certified or registered mail, return receipt requested, postage prepaid. In each case, the notice shall be addressed as provided below or to such other address or addresses as may be furnished by notice given in accordance with this paragraph 13. All notices shall be addressed to the parties as follows: DEBTORS: PMG, Inc. 5855 Topanga Canyon Road Suite 300 Woodland Hills, CA 91367 Attention: Charles K. Gunn E. M. Schaffran and Co. 518 E1 Cerrito Plaza E1 Cerrito, CA 94530 Attention: E. Morton Schaffran PMG Housing Partners 1983 -IV c/o PMG, Inc. 5855 Topanga Canyon Road Suite 300 Woodland Hills, CA 91367 Attention: Charles K. Gunn SECURED PARTY: Town of Los Gatos Civic Center, 110 E. Main Street Los Gatos, CA 95031 Attention: Town Manager 14. Modification of Agreement. This Agreement is subject to modification only by a writing signed by the parties hereto. 15. Further Representations. The Debtors each represent that (a) their respective signatures on this Agreement are genuine signatures, (b) the signers hereof were the appropriate persons to sign such document, and (c) the signers hereof had legal capacity to sign such document. 16. Term of Pledge. The Collateral shall remain subject to the security interests hereby created until the Obligations are - 7 - L 114 PAGE 2-,2 discharged. Notwithstanding anything contained herein to the contrary, at all times the Collateral shall be and remain the Debtors' partnership interests in the Partnership and the proceeds thereof. 17. Voting Rights. So long as there is no Event of Default by the Debtors under this Agreement, the Debtors shall have the sole and absolute right to exercise their respective voting, consensual and other rights and powers with respect to the Collateral pursuant to the Partnership Agreement; provided, however, that the Debtors each agree that they will not vote for or consent to the taking of any action by the Partnership that would cause any Event of Default hereunder to occur or that would be in contravention of the provisions of this Agreement. Upon the occurrence of an Event of Default hereunder which is not cured within the time period(s) provided for in this Agreement, the aforesaid rights shall immediately vest in the Secured Party, subject to the provisions of this Agreement. 18. Limitation on Liability. Notwithstanding anything herein implied or expressed to the contrary, none of the Debtors shall have any personal liability for any obligation to the Secured Party except as set forth in this Section 18. The sole recourse of the Secured Party in connection with the Obligations shall be to remove the Debtors as General Partner and Limited Partners, as applicable, pursuant to this Agreement. In no event shall the Secured Party seek or enforce a deficiency or personal judgment against any of the Debtors except for any liability imposed by law, including liability for bad faith, fraud, gross negligence or willful misconduct. Notwithstanding the foregoing provisions of this Section, this provision is not intended to defeat or limit the fiduciary duty which the General Partner owes to Limited Partners and the personal liability of the General Partner presumed to be owed to creditors for the debts of the Partnership. �-O� 444P46E 21� IN WITNESS WHEREOF the parties hereto have caused this Security Agreement to be executed in their respective names as of the date first written above. WITNESS: k w� WITNESS: ATTEST: ATTEST: ATTEST: 1. p,S' r ot•. . °7 GENERAL PARTNER: PMG, In ., AlTex s corporation By: Charles K. Gunn Title: President LIMITED PARTNERS: PMG Housing Partne s 983 -IV, a Caiif�rni li�mi ed�p tnership By: micna w, cr•errin Genera Part er E. M. Schaffran and Co., a California corporation By: CeB3 J�,P�af E. Morton Schafffan Title: PMG, In ex orporation By: Charles K. Gunn Title: President SECURED PARTY: TOWN OF LOS GATOS By: e T i t 1 Mavor - 9 - L 114PAGE 214 Exhibit A General Partner: PMG, Inc. Special Limited Partner: PMG, Inc. Initial Limited Partner: E.M. Schaffran and Co. 1.00% 0.01% 25.00% Investor Limited Partner: PMG Housing Partners 1983 -IV 73.99% - 10 - RESOLUTION NO. 1989 -167 RESOLUTION OF THE TOWN OF LOS GATOS APPROVING FIRST AMENDMENT TO AGREEMENT FOR DISPOSITION OF REAL PROPERTY BETWEEN THE TOWN OF LOS GATOS AND VILLA VASONA, LTD. DATED SEPTEMBER 28, 1983 INCLUDING CONDITIONAL ASSIGNMENT OF PARTNERSHIP INTERESTS RESOLVED, by the Town Council of the Town of Los Gatos, County of Santa Clara, State of California, that the Town of Los Gatos approves the First Amendment to Agreement for Disposition of Real Property between the Town of Los Gatos and Villa Vasona, Ltd. dated September 28, 1983 and Conditional Assignment of Partnership Interests (a copy of which is attached hereto), and that the Mayor is authorized, and is hereby directed, to execute said agreement in the name and in behalf of the Town of Los Gatos. PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los Gatos, California, held on the 5th day of September, 1989 by the following vote. AYES: COUNCIL MEMBERS NAYES: COUNCIL MEMBERS ABSTAIN: COUNCIL MEMBERS ABSENT: COUNCIL MEMBERS Thomas J. Ferrito Robert L. Hamilton Brent N. Ventura Mayor Joanne Benjamin None We =I- Eric D. Carlson SIGNED: l} OR OF THE TO N LOS GATOS V' ATTEST: CLERK OF THE TOWN OF 1# GATOS