2009-106 - Approving Agreement Of Purchase And Sale And Escrow Instructions For Acquisition Of 930 University Avenue (Apn 424-31-064) (2)RESOLUTION 2009-106
RESOLUTION OF T)FIE TOWN COUNCIL OF THE TOWN OF LOS GATOS
APPROVING AGREEMENT OF PURCHASE AND SALE AND ESCROW
INSTRUCTIONS FOR ACQUISITION OF
930 UNIVERSITY AVENUE (APN 424-3I-064)
WHERI,AS:
A. In June 2007 Council approved the sale of a 13-acre Town-owned .parcel located in Vasona Park (the
"Vasona Parlc Property") to the County of Santa Clara for $6 million and the transfer to the Town of a ,66 acre County-
owtled parcel adjacent to Oak Meadow Park, with both properties remaining in park use in perpetuity and with a
guarantee that the County will allow Billy Jones Raih•oad to continue to operate on County property. Pursuant to Council
direction, the proceeds from the sale, and all interest accruing thereof, are reserved for use in acquving and developing
community and youth sports facilities.
B. Verizon Corporation owns a 2.7 acre property (APN 424-31-064) located at 930 University Avenue (the
"Property"), currently used as a corporation yard, which Verizon offered for sale on the open market.
C, The Property is entirely unconstrained for development of a multipurpose sports facility.
D. The Town's offer to acquire the property was tentatively accepted by Verizon Corporation, subject to
Council's approval of the Agreement of Purchase and Sale and Escrow Instructions attached hereto as Exhibit "A" and
incorporated herein by this reference.
E. Council wishes to complete the acquisition of the Property for purposes of developing a community and
youth sports facility consistent with prior direction given with regard to the use of the proceeds of the sale of the Vasona
Parlc Property.
12I;SOLVED:
"I'he Agreement of Purchase and .Sale and Escrow Instructions for Acquisition of 930 University Avenue is
approved and the Town Manager is hereby authorized to execute the agreement in substantially the form of Exhibit "A"
hereto,
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town o.f Los Gatos, California held
on the 215' day of September, 2009, by the following vote:
COUNCI]~ MF,MBERS:
AYES:
NAYS:
ABSENT:
ABS`f AIN:
Diane McNutt, Joe Pirzynski, Steve Rice, Barbara Spector, Mayor IVlike Wasserman
None
SIGNED: ~~ ~~~~e~~ G%~~~%~~
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
CLERI kl~ 1NIS"1P.A"T'tJIo OF TILE TOWN OF LOS GATOS
1.,OS GA`fOS, C~LI,IFORN`lA
AGRTE,NII l'~tT Or PUItCJ'IASE AIVI~ SALE
~IYD 1SCR(7W YNS`I'R'UCTCOI'dS
This Agreement of Purchase and Sale and 1!,scraw lalstructions (tlle "Agreement")
is made as of'Septetalber 1, 2009 by and between Vericon California Inc., a Cal}forma
corparation ("Seller"), and ~1'orvn of l.,os Gatos, a muialctpal par-poraCLOn (`Buyer"),
Recitals
A.. Seller is the o~a~ncr of the "Property" (as defined in Paragraph 1,1 bela~v)
which .includes approximately 2.7 ~ acres of improved lallcl, inc:htdizlg a building consisting; ofi
approximately l ~,~0 l square feei anti a building consisting of approximately 4,292 square feet
(collectively, i'he "13ullding"} commonly rcfcrrcc3 to as 930 University Avenue, Los Uatos, Santa
Clara. County, California (Assessor's C'arcel No. 42431-064).
B. Seller desires to sell the Property to Buyer and Buyer desires to purc}aasc
the Property krona Seller on the tel'nas azld conditions contained in this Agreement.
TT-Il PARTIES AGR1•JI; AS I<OLLO~VS;
Sale of Propea-t)!; PLirGhase Price.
1.1 Sale of Property. Seller shall sell to Buyer and Buyer shall
purchase frarn Seller, a.t. the price and upon tlae teT~lns and conditions set foT~tll in this Agreean.ent;
(.}} that ecl~taiaa.l•ea1 propert}' containing approxixrlatel}f 2.73 acres oi, land located ai X30
University Avenue, J,os Gatos, Sarlt:a Clara. County, Calil-orx)ul and rrtore particularly desaribccl
11a 1JY1111?lt "l. l" (the "I.aiad"},; (lt) ftlly 1111p1'0'tr[,n1C.nt5 Sltllated bn t}le LanCl .(the "lnlprOVCn7C;ntS"}~
atld (iii} all appuz•tenanc;es to the Lallct owned by Seller, includialg, ~~r}thaut limitation, all
clevelopnlent rights, air rights, mineral rights, water, water rights and water stock relating to the
T and (the ",Appurtenant I~igllts"). "l'he Land, the Improvcnlr;nts, and the flppurteiaant Rights a.re
collectively referred to heroin as the "Rea} Property," Tllc Real Property, and t}te F'el•sonal
Property, if any, as described in Paragraph 1.2 bclo~~~ are collectively referred to .herein as t}ae
"Trope-rty "
] .2 Sale o:f Personal :Pa~oper-ty. ~13uyer acknowledges that no personal
propel•ly (:`Personal Property") is being conveyed to Buyer pLtrsuant to this ~1.breement.
1.3 Purchase Pz~ic.e. Buyer sllal:l pay to Seller as the fatal purchase
price Tor the Property (tlac "Purchase Price'') tlae Burn of 53;100,000 payable Fls follows;
1,,'l L}eposrt..F3uycr sh:~ll deliver the Brun oF~50,000 (the
"Initial peposit") to "i~scraw I-Iold~r" (as det7nec) in Ptr.ragraph 7.. l bcloti~) in i.n•liazcaiatoJy
available funds pronaptl5r after Buyer's delivery of the partially executed Agreement. to Seller or
Escrow I=[olclcr, Buyel• ackna~~~ledges and agrees that. not~~~ithstancling the initial execution of• the
rlgree:lalant, no a(;rGernent shall exist betwe;cn Seller and Buyer until fhe Initial bcposit is
t9933G3G,'a
E~IIBIT A
clc;livcrecl to Lseror~~ Holder, and Seller shall have no obligations to Buyer with respect to the
I'ro}?erty until the lnitiak Deposit is delivered• Provided Buyer has nc~t t~t7l~inated this Agreement
prior to itre e;ncl of the "1?easibility Period," as dc'I'ined in Paragraph 2.9,1 below,l3uyer shall
deliver an additional sum C)'I.' `~a0,000 (ihe "tldditional l.~eposit") in immediately avzlilt-zble funds
to Escrarv 1-Ivlder prior fio the en.d of the ]~ easibility Period. I('Ruyer fails to deliver the
Additional Deposit w.ithirt the time period set forth in this ptu•agraph, this Agreement shall
autontaticallyterm~nate and the provisions of Paragraph 2.11 below shall apply, Escrow Holder
is u•revocably autllorize(1 and instructed to deliver the Initial Deposit and Acic~iitional Deposit
{collectivel}~, the "Deposit") to Seller upon the expiration v1'llae 1~easibility Period if Buyer has
not terminakecl this Agreerrtet~c pa•iar to such exp.irativn date, Buyel• al;rees to execute all
d.oct.tlrten.tatiorl reasonably required by Escrow Holder to effectuate the release of funds in
accorda.rtce with the terms of this Subparagral7h 1,3.1 •
1,3,2 I3ala.nce, The suns of $3;000,000 (the `Balance"),
constituting the balance of the Purchase Price, shall be deposited by Buyer in imtnediutely
available funds into Esct•or~~ no later than t~vv (2) business days before the "Closing 'Date" (as
defined in Paragraph 2,2 below).
EscrvrG~: Clvsin~nditions,
2. ] Eseroyy. No later than five (5} business days after the execution of
this Agreement by Bt~iyer and Seller; Buyer and Seller shall open an escrow (the ");straw") with
l~'.iclelity National Title (ihe "Fscro'~v I~olcler") and shall deliver a fully executed copy of this
Agreement tv I,SCI'aGY Holder. The deposit with 13sero4v 1-Iolder al'{ 1) a fully eaecutecl original
vl• fhis Agrec:nlent and (2} the Initial Deposit by Buyer shall constitute fihe openint; of Escrow
(the "Openi.t-tg ol'l;scrow"} and atzthoxi~ation tv Iscrvr~v Holder to aet in acevrdance with the
terms of Ellis agreement, l::,scrvw HpJder's standard provisions tire. attached hereto as
Exhibit: "2,1" at1d shall becon.~e a part hereof; provided, 17or~levar that if there is an}~ conflict or
inconsistency between such standatd provisions and this Agreement, then this Agreement shall
cvnirol.
2,2 Glosln~ Date. The Escrow shall close on November 12, 2009 (the
"Closing Date"). Notwithstanding the i:oregoing, tl~c "Glvsing" (as defln.ed .in Pzu•agraph 2.7
.below) ar Close of lscra~v shall not occur unless tl~e canclitians to tl3e Close o'f Escrow set. forth
in this tl,greement have been satisfied or waived, includhlg; vlithotlt limktation, (i) the conditions
set forth in Paragraphs 2,9 find 2, l0 below, (ii) the cortclition that all items described in
Pttragraplrs 2,S tuxl 2.6 below shall have been cle;po~>itcd w.ifh escrow I•lolder, and {iii) the
CC)I]dltlol7 that the "Title Col7~pany" {as defined in Paragraph 2,3 belor~~) has unconditionally
eoannlitted t.a issue the "T'itle Policy" (as de:Cned in Ptlrttgral~la 2,3 below). if any of such
conditions have not been satisfied ar waived an yr belbrc: the Closing Date, t17is Agreement a.nc!
the Fscror~~ shall terta3inate; provided, however that such tcrminatiorl shall not affect any claims
that either party may have against. the other for atay breach of this Agreement. IP neither party is
in de.{cult hereunder, upon any termination of this Agr~cment, the provisions of Paragraph 2,11
shall apply.
2,3 'l~itle and Title Insurance. Seller sha11 convey title to the 12ea1.
Property to l:3uy(:r b}! a grtUlt deed in the form of l:;xhibit " 2.3" attached hereto (the "Grant
_2~
;)73lG:fG.3
Deed"). At the "Close of Escrow," 1~idelity National `l:itle (the "Title Company"), shall issue
tlu'ough E5e1'OV4` au (Jtivner's Policy of Title Tnsuran.ce (the "Title Policy") t~~tth CLTf1 coverage,
l[11leSS l~t.tyel' elects iLLTA coverage and pays the additional cost. of such coverage pursuit}t to
Paragraph 2.1.2 below, in which event the Title Co~npaxry shall issue the 1'itlc Policy with AI.,Tn
coverage, ~~{ith liability in the amount of the Purchase Prica, insuritlg fet; title to the Real
Property vested in t3uyer, subject only to the follo~vitag exceptions (the "Permitted Exceptions"}:
Policy;
delinquent or payable over tithe;
(i) the standard printed exceptions set forth in the Title
(ii) general and special taxes and assessments not tl~cn
{iii) those cet•tain exceptions ~~~l~ich have beer,. approved
by Buyer as prnvidcd in Paragraph 2.9,1 below; and
13l.1ve1',
~,~1 COSCS,
{iv) any exceptions to title created by or made through
2.4.1 Escrow Holder's :fees ~~~ith respect to the Lscrow shall be
shared equally by Seller and Buyer.
2,1.2 Seller sha11 pay the premium ].'or a Cr,TA Standard Policy
of Title 7nst:tt•ance. Tire additional cost l'or an tl(.,TA Owner's Policy, if selected by Buyer, and
any etldorserne;nts to the "l°itle Policy requested by Buyer sl~al.l be paid for by );3uyer• Buyer shall
pay a]I costs and expenses, ilany, incurred in connection with Its avta.inii>g a suttiey ofthc;
Property.
2,4.3 x.11 expenses and charges incurred in connection with tl~e
discharge of delinquent taxes, .if'any, or monetar}~ liens or monc;taiy encumbrances on Che
Property, other than (a) those created by pa' made tlu~ou~h Buyer, (b) bonds, taxes and.
assesstnc;rats pa}bible over time, except Co the extent payable by Seller under Par•alraplx 2,4.4
below, (c) itzterests granting royalties to tltircl parties, (d) liens arising out o[~ any legal
proceedings encumbering the Property, t'rot~vithstanding the fact that stitch liens could be
discharges{ by the pa}m~ent o.l'n~aney, and (e) any exception to title that cannot expressiy, by its
teens, be discharged by payment of money, shall be paid by Seller
2.4.4 ~1;L1 inst<tl]n~ents of bonds, special taxes or assessments
which the a lien on tlae Property ttncl due and payable in fu]! prior to the t.it77e of Closing shall be
prorated in tl~e manner set forth ]n Paragraph 2,8.1 ]~elow; provided, however, that ir~t
deterrnitiii~g any ruz~ounC payable by Seller; such assesstalents shall be a:mo.rtized over .the lon.l;est
l7eriod oftinre per.tnitted by the taxing auU~ority Co make such pa}anent, even if the; assessment is
assessed as a.lur7~p su~n•
2,4,5 Fach party shat] be responsible fot• payment of'tlle fees and
expenses of its counsel relatsng to this Agreement a.nd the transactions contemplated heraby.
-3-
~~~~3acae.~
2,1.6 Any county dac><n)aentary or tr•anst'er taxes and recording
1.'ees shall be paid by Seller. Atay city docutnetatary or transfea: taxes shall be paid one~laalf by
Buyer and one~laalf by Seller,
2,1.7 Ata}+ other closing costs or charges shall be paid by tlao
party that customarily pays such costs or charges in the Santa Clara County, California,
2.5 Deposit of Dacuanelats and. Frinds lay Seller. Seller shall deposit
with Escrow Holder the f'olla~uin~ items no later than t4vo (2~ business days prior to the CLasing
Date, duly ex.ecutecl and ac1<na~vledged where recl~ua•ed:
2,5.1 The Grant Deed,
2.5,2 A completed California. )rranehise T ax 13oacd l~artn 5~3_~r,~
attd an affidavit ce)~tifying that Seller is not a "foreign person" as defined in the Intcrtial lZevcnue
Code.
2.5.3 All othcs- docurents as may reasonably be rc;quirecl by
}~scro~v Holder or the Title Caml)2ny to close the Escrow in accordance with this Agrecia)eni,
2.6 D81)USIt Of DOCU1Tlelat5 a7)d ~UndS by l3llyei'. ~llyel' Shall del)aslt
u~itlt rscra~v TJoldea• the folla~ving teara.s no later than t~~vo (2) business days prior. to tlae Cl.casing
l~atc; duly cxecattecl. and ftcl~io~vledged wlicre required;
2.f;,1 "C'h.e F3alance. plus such Gtdditiataal PuiadS aS are regclirecl to
pay f3uycr's costs and prarations as provided in Para~~t~~ph 2.4 above and Paral;raph ,'_.8 bc;low,
less an.y credits buyer is entitled to hereunder,
2.6.2 A completed and originally execnteci Prelimitaary Chattgc;
ol'Oujnership Report in the Porrn required by ilae Satata Clara Coutaly Recorder's O'1'IICG (lhe
"Change of Ownership Repast").
2.6.3 ~1 certiCed copy a~I~resolutions of the governing body of
I-3'llyc'r adppted at a la1e<'.t1111? Urs41C11 ~Ulrernltag bod}1 approving this Agreement and the
transa.clions carrten7plated hereunder ("Buyer's Resolutiatas"); as soon after such meeting as the
Rover's Resolutions are available.
2.6,d All other :limds and docunac;nts as naay tae reasonably
required by Escrnul Bolder or the Title Canaplny to close the_ 1/scrour in accordance with this
A greena.ent.
2,7 belts+ery of Documents toad funds at Closing. `1'hc performance oC
tlae ilCfS Set i'at'll) in this paragraph shall Gonstrtute the "Closing" or the "Close of Escrour" as
suah t.errT~s are used. in dais ~agreemert. The Lscrn~v I-lalder shall cot7ducC the Clasi.ng by
recording and distributing the following described documents arrcl funds ita the following .manner:
2.7.1 Deliver Buyer's Resolutions to Seller.
_Ll_
~e73;sr~sc~.~
2.7,2 Deliver to Seller rn1 the Closing Date in~mcdiately available
funds in the sung of the Balance, and suclx other fu-xds, if any, clue Seller by z'easan of prorations,
less Seller's G.lasing GostS and prorations, if any, as provided in Paragraph 2.~1 avow anal
Paragraph 2.8 be]aw, anti any credits Buyer is entitled to lxereuncler,
2.7.3 Pay Elie costs refen•ed t.a itl.Paragraph 2,~ above.
2.7,'1 Record tlxe Gz•atlt Decd in the Office; ot'the County
Recarcler of Santa Clara County and sitnultataeously deliver the Change of Qwtxarshi.p Report to
$L1CI7 ~)1'f1Ce.
Gapy to Seller
2,7.5 Obtain and deliver the original Title Policy to Bu}per and a
2.8 Prorations.
2,$,1 Taxes, 1-scro~v Holder shall prorate on a 36S-day basis the
ad valorem tuxes an the Real Property for the Guct'ent fiscal year and all installnlezats ofbotxds,
special taxes, and assessinetl.ts payable over tune as of the Close of ;/scrow based ttl~an the m.nst
carrent real estate tax information available, Buyer acktxowleelgcs That Seller is obligated to pay
1o the California State l3oarcf of Lqualizatian the; ad valaz•cm taxes on the Real Property far tlxe
cnf.ire tax fiscal year during which the C.lase of Esorow occurs even tlxough (a) Seller tivill own
the Praperty for less than t11e entire fiscal year, and (b) such payment foxy be due fallowing the
Close c>:f lscro~~+• Therefare, Buyer a.grecs that at the Close of lascra~~+ Sellcl• sllal I be credited
and Buyer shall be debited an amount. equal to that portion of the act valorem taxes on the
Property attributable to the period frotxz t:he Clare of L;scro~v to t11e encl of the tax fiscal year in
Gvhich the Close oi')rscrorv occurs. ~1.ny bill for supplemental ad valar:em Mixes ("Suppletnen.tal
Taxes") on the-Real Property wh.tch is ]ssued after the Close of lscrow shall be prora.t.ed by
13uycr and Seller outside of 1/scrow titter the G:lose of )scrotiv P:ach parley shall renxit its pro .rata
Shale of any suGlx Supplemental Taxes, as reasonably deternl.inGd by Seller and approved by
Buyer, such Bu}rer's approval trot to be unreasollal~ly i~vithlleld, to the requesting paz•ty outside: of
)~;sc>:aw within ten (10) days aftc;r such party's receipt oP a copy of tlxe bill for such Supplcialcntal
Tastes from the requesting party, Notwitlxstaxxdzng the proz•at.iaxi proccclui'c: described above;
Buyer shall assz,ttl~e and shall pay all ta~:es and asscssmcnt.s (il~chtding, a{1 roil-back taxes and
assessments) levied or assessed agaixxst any portion of the .Kcal Property as the result of a clxange
in the use ox' ownership oC the .Real Property occurrizxg fi•om and after the C.lositxg Date, and shall
defctzd, iudetnnify, and hold Seller harn~tlcss from any cost, expense, liability, ar obli.gation
(inGluc{ing, ~~~ithaut lira~rtatian., reasonable attorneys' fees and costs) with respect. to any such
taxes or assessments, Tll[s prav.isiotx shall survive the: Clare afEscro~x~,
2,8.2 Utilities. Bscz•ow 1-folder shall prorate through Escrotiv, on
a 3Ci5-clay basis, all wa[ez•, gas, eleetriG and ether utility set-~+iccs, if any, on file PrUpe1•t}r. Any
such itCm that is not determinable at the Closing shall be adjusted by the parties by cash paymealt
outside; af'Escrow when dctertnined.
2,z) Buyer's Condit[ons to C:losin~. ]3uycr s11a11 not be obligated to
praceeci to the Close of Lscrow anti the Closing shall not acc.z.tr unless and until, in addition to all
_~_
19733636,3
other conciifi.ons contained izr this Agreezll.ent, the following condit.iozls have been satisfied or
waived i]a writing by Buyet•:
2.9.1 Evaluation of'Proper~. On or before the ex]airati.on of the
period eratl]n~ thirty {34) days after the Opening a.(' Escrow (the "Feasilaility Period"), Buyer, in
I3Llye]''S sole discretion, shall have approved file Property, lnCllidrrlg, Y\~Stl1(7Ut 11111Itat1011, t110
t'eSLlltS 0'l' all l]]S]aCCtl.OnS, teStS or SkL1dlE5 Of tlae Pt'Upirl't}' CotlduCteCl by C7i' an behalf of 1'3uyer.
BlayeT Shall dell\~el t0 Selll:I', ]71.Olllptl}' upotl 1'eCelpt, CopleS of all Wl'ttten illSpeCtlpI11'e5l]lt.S, tests
atld studies of the Property conducY.ed by oe on behalf of Buyer; provided, however, that Buyer
shall not be obligated to deliver to Seller proprietary information relating to Buyer's potential use;
of the; Property; incluclirlg architeetttral studies tlncl evaluation, i~urther, without limiting the
generality of fhe foregoing, Buyer shall have approved ti]e feaSiblllty Of 1tS Obtaarrlllg SUCK
povcrnmellta.l approvals as may be required for Btaycr's proposed use of the Propcriy, including,,
withoa.It limitation, any changes in zotling (the "~oning Appro~trals"), 13z.tyer's failure to notify
Senor or Lsero~v Holtlcrpriot• t.o the expiration of the )µeasibility Period of Buyer's disapproval
ofthe Prapeaty or any of 1~uyex's feasibility studies shall constitute 13>:tyer's election to proceed
t.o the Close of Lscro~v All inspections, tests and studies conducted lay I:3uycr shall be at Buyer's
so.Le post and expense. I'rio.r to the; Closing, Seller shall cooperate t~rith Buyer as reasonably
regttcsted lay anti at the sole expense of Bztyer (and to the extent possible) for the pur-laosc of
obtarn.i.rlg all Toning Approvals and permits I•equirecl in connection ~~'ith Bayer's proposed Use of
the Property; provided, however, that the effectiveness of any such Zorai]ig Aplarova.ls affecting
t:he Property shall be expressly conditioned upon th.e occurtezlce of the Close of Escrow and shall
~7ot be b.i.tlditag upon Seller,
2.9,2 Relatecl,~ ocitments, ti~jithin ten (1(l) days after the
c-;?cecutiotr of this rLgrectalent b}r Buyer and 5cllcr; Seller shall have made a~a'tlable to Bu}rer
copies of any teclmica.l studies or reports in Seder's possession (including a copy of the most
recent stu•vey of the Property (if any) and copies of Building ]clans (i.('' any)) anti which. are
located at the office of(t) Seller's Broker, (2) Ve.rizo.n Calilorn.ia ln.c. Buildinl; Sea'vices
I~e;partnlent, acid (i) Ve.r..iz.nn Califoriria Inc, Environmental Compliance llepart.ment regarding
the environmenfial, seismic,. or geological condition. of the Property. Seller (a) has not
inclepealdcntly investigitted an}1 infornl.atioll included i.n such studies or repoa-t; a]id {b) htzs not.
rnacle an.cl does not make any retaresentatio]as or wan•anty re~;arciing file truth, acctu'acy aI•
coatlpletencss oi'the in.fol'mation tlaacle, available to Buyer. Seller shall use colntnercially
reasonable efforts to make available the docurllentation described above to Buyer; providccl,
ho~~'evel• that .Buyer acknowledges and agrees that despite. Se11ez's conlnacrcially reasonable
efforts to rzral<e available to Buyer the docun•]entation described herein, documents Waxy
inadvertently not be provided to Buyci•, and :Hover shall nlalce its own 'Independent inspection of
the Property in the nranzle;r set forth in Paragt'aph S below. Nol~vithskandillg anything to the
eontr~uy contained in this Paragraph ?_•9,2, ,Seller does not z'epreseut or warrant that any ,such
stuclics or reports exist or a1•e i.n Seller's possession, and :Buyer assumes khe entire risk of any
inacfverterat failuue by Seller to deliver any cl.oeunlents to Buyer.
2..9.3 Evaluation of'T'i~le l~cpot•[, Within ten (10) days alter the.
execution of this Agreerneilt by Buyer and Sellc;r, the Title Colnpaza}` Shall Have delivered to
13uver a pa•elin?i.rlar}' title t•epol•t issued by the Title Company (the "Prelinl]naty Report") 1'c7r the
Properly (as «rell as copies of all title documents r4fcrrecl to therein).
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\9733636 3
2.9.4 Title Review•
(i) ~1p»roval• Buyer s11all not Have disapproved the
Preliminary 1Zeport ~vit11i11 the earlier of (a) .fifteen (1.5) cttlenday days tt~Pter the reoeil?t ai'the
Preliminary Report. alxl copies of 111 doeutrlents referenced therein, or (U) the exliration o.f the
Feasibility Period. Buyer shall provide to Seller and Escrow Balder rvt•itten notice of i3u}rer's
disapproval. of 1ny title exception (the "First Notic;c"), Any title exception not so disapproved
shall be deemed ap111•avecl, provided that iPa supplemental report is issued showing any
exception 11ot shown an the Preliminary Report, Btlyer shall have an additional tell (1Q) calendar
days a`li:er receipt of such sttpplcm~ntal repast and copies of all documents referred to therein
(.not previously provided Ca Buyerj la approve or disapprove any such title. exception.
Not«~ithst~uiding a11yLln1lg to t11e Ct)lltrat'y contained. in the foregoixlg paragraph, Buyer shall trot
be entitled to ext:end the title review beyond d1e expiration of the Feasibility Period for any
supplemental title report issued in connection with a survey of the Property obtained on behalf of
Buyer. Buyer shall .not be entitled to disapprove Bans Per current non-delinquent property taxes
or any exception to title created or made through Buyer,
(ii.) Disala . r")~ O~~tll. Should Buyer disapprove any nlattci•s
of title, then within ten (10) calendar drays after Seller's receipt af'such. First Natiee (the "Seco11c1
Notice Pel~iocl"), Seller shall provide notice to Buyer and Escrow Holder whether Seller is
willing or able, it1 Seller's soJ.e discretion, to attell•]pt to cause such elisapproveci items to be
el.in'linated priot• to or at. Clasiug (tl.1e "Se:cond Notlcc"); providccl, however, that if Seller does
not provide such Second Notice, Seller shall tae deemed to have elected not to attempt to remove
the disapproved title exceptions. T'F the Second l~latiGe states that Seller ~a-ill attempt to cause
sttch disapproved. title excal7tions to be removed from title to the Real Propert}! prior to ar at
Clasitlg, then Seller covenants to use colntilercially reasonable efforts to so remove them. T1'the
Secancl Nrotiee states tltat Sellet• is unable or unwilling to remove such disapproved title
exceptions (ar if Scher Pails to send the Second Natiee), then ~vitltin teu (10) calendar days after
(a) receipt of such Second Notice, ar (b) cxpirati.an of the Second Noti.cc Period if Seller fails to
send the Second Notice,l3tiyer shall provide a notice to Seller and L.scrati~~ holder stating
ti~~het.her Buyer will waive, in T3uyer's sale discretion., Seller's inlbility ar unwillingness to
remove all t11e specified disapproved title exceptions .('i-o711 title to the R.ea] Pt•opel•ty (th.e "1'hi.rd
Notice"); provided, ha~vever, Buyer's failure to give such Third I~totice shall be deemed to be a
rG't'C(Sal t0 4Va1Ve T3Lly~•1''S disapproval o:l't11e title exceptions. if 13uye1•'s Third Notice specifies
that Buyer waives prior disapp]•avals except as to those hatters Seller has elinlinatec) or will
eliminate prior to or at the C.lasing, the cotldi.tian catitainec] in this Paragraph 29.4 sfl.all be
clc.e:nled satisfied; sa long as any disapproved title exceptions which Sellc;r has agreed to
eliminate prior to or at the Closing have been eliminated prior. in or at C11e Closing. If the Thirci
Notice specifies that Buyer refuses to vvaive its prior disapprovals (or if'the 'third Notice is not
provided), this Agreement and the Lseraw shall tel~n1l11ate itt a.ccordancc with Paragraph 2.T l
herein.
'>,9,5 Issuance o1'Tatle Policv• 'T'he `Clete Company shall have
issued the `T'itle Polic}~ as of ells Close of Escrarv,
2.9,C Waiver. 7'he Poregaillg conditions set earth in
Paragraphs 2.9.T, 2.9.2, 2,9,3, ?_9.4 and 29.5 above are for ells belleCi.t oP Buyer, and nlay b~
_~_
it3T~3616-3
waived by Buyer in rrrriting delivered to Seller and >/scror~v 7-Talder, In satisfying the foregoing
conditions, Buyer and Seller shall each exercise good faith, reasonableness and diligence.
I Iowever•, decisions authorized to be .made in the sole discretion of either Buyer or Seller shall be
final .and riot subject to review or challenge on any basis,
2.10 Seller's Conditions to Closin~,• Seller shall not lie obligated to
proceed to the Close of Bscraw and the Closing shall not occur unless and until, in addition. to all
other conditions contained in this ,agreement, the following conditions have been satisried or
wvaived in r~~riting by Seller:
2,1.0.1 PerPor7a~an.ce of Obli 7ations. At or prior Co the Closing
Date, Buyer sJrall Dave perfonnecl all of Buyer's obligations herein that are to be pet'fot•mec1 prior
to fihe Closing,
7.10.2 Waiver. It. is hca-eby understood that t'he (;ondition se.t forth
in Paragraphs 2.10.1 above is :(:or tlae benefit of Seller and tray be waived by .Seller in r~lriting
clelirfered to Buyer anti T:scrow Holder. 1n satisfying the conditions in this Paragraph 2.10, Seller
~ncl Buyer shall each exercise goad faith, reasonableness, and cliliget7ce. iTorrlever, decisions
ruthorized to be u~ade in the sole discretion of Gather Buyer or Seller shall be final and not.
subject to revicrv or challenge on an}~ basis.
2.11 '1'ernlination, Upon any tern7ination of this Agreement and the
T'scror}7 (il' applicable) far any reason, other than either l~artl~'s clcfattlt hereunder, (i) each party
shall execute such documents as F..scrorr~ Holder may reasonably require to evidc;nce such
texn~i:nation, (ii} Iscrorv Holder shall charge its 'fees aa7d expenses to bath parties equally,
(iii) subject to the provisions of Paragraph (ii} above, Bserow 1-folder shall return all doeurnents
and fonds to the party wllo deposited them, (ire) Buyer shall a~eturn to Scaler al] documents
delivered to iC by Seller relating to the Property, {v)13uyer shall deliver to Seller all Documents
]~eJating to the Property, as defined in Pt(ragrapli 1 l below, (vi} Seller shall t•eturn to i3uycr any
portion of tl~e Deposit previously delivered to .Seller, and (vii) all obligations of either party
relating to this Agreemcrtt and the Property shall terminate,
3. Sc11er's TZepresenlati.ons and ~Vi,'arxanties, Seller ltcreby rc}~resents anct
warrants to Buyer that, unless otl~ervvise larovided, at the date of exe,cut.ion hereof and at and as
of the Closing Date:
3.1 Cor_____~ o~•ate l~istence told Authority,, Scllex• is a corporatio~~
(i) validly existing ai~cl in good staridi.t7g under the larr7s of the State of Catifornia; arld {ii) duty
authorized, qualified an<l licensed under any and all laws, ordinances, rules, i"e;gulati(7ns and
requirements of all governnzenta:l authorities to do all things required of it under ar in c:annection
with this flgree~nent. `t'his Agreement and all agreements, instr•uu1ents and docurnc-nts herein
prm~ided co be executed or t.o be caused to be executed by Seller are clialy executed by told
bi.ncling upon Seller. each. individual executing this ~~grecrn.ent ou behtt.lf of Seller represents
anal warrants that he or she is duly authorized to exCcute and deliver this Agreement on ScLler's
behalf,
.9 r33G~C.:>
_g_
3•`~ Non->?oreign Pet•san, Sellet• is not a "foretbn person" rr~ithin the:
tneaning of Internal Revenue Code ~14~5.
~l. l~ll~er'S 1Z.l:pl'eSeri[at10.nS Piid.Warrankies. Bayer herelay represents rand
warrants to Seller that ai the elate of esccut.ion hereof acrd at and as of the C.lasing :Date, Bu)fer is
a mulaicipal corporation (i) validl}~ existing and in goon standing under the laws o#the state o{'its
incorpot•ation and the State of California; and (.ii) duly authorized, qualified and licensed under
any and fill lar~~s, ordinances, .rules, regtalatians clad regllli'GltlentS of all governnaetttal authorities
to clo all things required ofrt under or in connection with this Agreetnent• This Agreeralerlt and
alt agt•eetnents, instruments and documents laercin provided to be executed or t.o be caused to be
executed by Buyer are duly e.xecuied and binding on T3uyer, Lach individual executitag flats
Agt•cenaent on behal#'ofBuyer represents and warrants that lte or she is duly authorized to
execute and deliver' this elgreemetat on Buyer's belxall•.
S. Buyer's Examination of the Pro ~e~• Bxcept as provided in Paragraph ;
of this Agreement, Seller makes no representation or warranty respecting the Property, or airy
portion thereof', or otherwi>5e in connection tiviih the transaction con.tett~plated laereUy, Without
liuaitilag the gc:taeral.ity of Cl7e ~I'oregoing, .)buyer heret~y acknowledges and agt•ees that Buyer mill
be purchasing the Property "r1S 1S" with all faults, without representation, warl•anty or gtraraniee
of'any lcinri, either exl>ress or in3plied, i.ncltuling, vvithout limitatiotl, any ~varrataty of condition,
mel•chantability, hal~ital7ility or fitness :tor a partic~llar use or• purpose or the; value, accrrraey oi'
ittfot`rrttttion, tnarlcetaUilit~J, prospects for Cutur~e development, use or occupancy., except as
provided in Paragraph 3 above, and more spe;cifical.ly that:
(1) Prior fie the Close of Escror~,~, Buyer will have made
its oven independent investigation of the Propert}7 and all either aspects of this tralas~iction,
including, vvitlaout li~rtitation, the financial value of the Property and pro•jcctecl future income and
expenses fiirr the Propc:rt}~, and Mils relied entirely thereon and on the aclviee of its independent
consLlltants (if ar-iy) in entering into this Agreement, and not eta ttny infornla.tion or ma.Cerial
supplied by or on behalf' of Scl.lcr•
(ir) Prior to rite Close of Tsscrorv,l:3uyer vlill have
rc.vier~~ed all instruments, records and docuataents which Buyer deemed appropriate or aclrrisable
t~ 1'e View 117 COnrleettOn 4Vlth rile Pl'Opel't}~ and this transaction, and Bu}rcr will har1e detern~ined
tl.iat .the tr:Fo.I•.rnation and data colitained ttrerein. or evidc;taccd (hereby ~~'as satisfacto.ry to l3uver•
• (iii) Seller rnalces no representation or 4vat7•anty 4vith
respect to the zoning or pernaitt.cd use of any pol'tion of the Property.
(iv) Priol• to the Close of'lscrorv, Buyerwill be fully
satisfic.cl tlattt the Prn•chase Price is fair and adequate cousidet•ation for the Pr'oper'ty,
(v) Subject to the conditions, cavenanis, representations
and rxfarranties of tl7e l~artie;s set f=orth. heren~, notwithstanding any adverse effect on tlac
traarlcetability, desirability or value o('the Property or ata}r portion thereof which occa,u•s Uct~z-een
the execution of~this Agr•eemenf and the Closing; Date, inelucling, w:ith.out linaitatiota, any <adver•sc
eff''cct arising (rein or related to any changes oi• proposed changes to any governmental lar~vs,
19733fi3G.3
_g..
ordinances, statt.tt:es, rules or regulations, the transactions contemplated by this Agrc:enlent shall
be aansumnlatecl an the terms and conditions contained herein.
(vi) Buyer aekno~vledgcs receipt of that certain Property
Risk Natural Lazard Disciostlre Report prepared by JCP-'LGS k'ropel•t}~ Disclosure Reports,
dated June 9, 2009.
6, azardous Nlateri.al.
6.l Definition al' H.acardotts Nlaterial, AS llSed lle!'elIl, the term
"I-~azarclous Material" means an}~ hazardous or toxic substance, material, or waste 4vhich is or
becomt;s regulated b}~ any laaal govet•tllnental alrtllarity, the State of California or the [lnitecl
States Governtllent. Th.e tornt "I-Iaza.rdous Iviaterial" .includes, without lilnitatioll, any nlateria] or
S1tbStalleC: \•V.~liell 1,S (i) deI'~ned as "hazardous wade," "extremely 11aZardOllS waStC;" U1' "1'eSt1'ICtCd
hazardous waste" under Seotions 2S11:i, 251 1.7 or 25122.7, or listed pursuant to Section 25 ]~lU,
of'the California I-lealth and Safety Code,l7ivision ?_0, Chapter C.S (Hazardous Waste Control
L,ativ), (ii) defined as a "hazard04LS SW17StaI.1Ce" tl.ll.del' SeGtlon 2531 G Uf t11e C'.ali.fornla 1-lcalth anti
.Safety Coda, Division 20, Chapter 6.8 (Carpenter-Preste}~-Tanner Ilazardous Substance ~~ccourtt
Act), (iii) defined as a "hazaldous material," "1-3azar.dous substance," or "hazardous ~,vaste" under
:Section 25501 of the Californ.]a IIcaltll aild Safety Code, Division 2U, Chapter 6,95 {l°Tazardaus
Materials Release Rosponse Plans and Inventory), (iv) defined as a "hazardous substance" under
Section 252111 Uf the CaH:I'arnia Health and Safety Code, Division 20, Chapter 6,7 (Uncl.crground
Storal;e c7I'11arardous Substances), (v) petroleulal, (vi) ~sbestas, (vii) listed under Article 9 or
defnled as "hararclous" or "extrcnlely llazardaus" pursuant to Article d of Title 22 of the
California Adn1i11istrative Code, I~ivisio114.5, Chapter 11, (vrii) clcfinccl as a "]Iazardous waste,"
"harardoGts sl:lbsta-nee" or similrtr term under thn lice-feral ~~atcr 1'ollutio.n Control Act (3 i U•S.C.
51:31.'1), (ix) defined as a "hazardous \~vaste" pursuant to Section 1004 of the federal Resoure;e
Ccnlse3-vation told Recovery Acl, 42 U.S.C, ~69U1 et sect. (42 U,S,C, X6903), (x) defined as a
"hazardous substance" ]Jt11'Stlallt to SeCt1Un I()1 0{ file GUn11)t'Che11S1Ve Fnvironnlental Res}Ja31sc,
Con'lpensation turd Liability Act, 42 U,S,C, $9601 et sect, (d2 U,S,G, §9601), or (xi) which
rec}uiri;s investigation or renlediatioll under any federal, State or local statute, regulation,
c>rclinance; orclea•, actioal, policy or c;o111111pn ]aw.
U.2 Presence of I-Iflzai'dU1ls Material, Ruyot• aclalowled~;es that (i) the
Building contains certain asbestos colltainillg trlatel•ial (the "identified ~-CM") as identifiied 111
t11at certain ComlJrehellsive Asbestos 5urve}J Report dated. March 16, 2009 prepared by
l Iygienctics ~Cnvironnlental, (ii) Seiler will not relnave the l;dentified ACM, (iii) the 13ui1di11b
may contaila tlthe:r asbestos and lead panrt winch will not be. removed by Seller, (iv) the Property
may or may not contain cel•tain ot}1er I-lazardous Materials, (v) Seller has provided .Buyer with a
copy QI'that certain ]?hose TF.,.1lviro1~t11en.Ca1 Site Assess111ent dated April l 3, 2009 and prepared
by ATC Associates Iue. (tllc "Phase I"); a11d (vi} Seller mattes 11o represcn[aticln or waI•t•artty to
Buyer regarding; fhe presellcc ar absence of any Flararelotls ?vlaterials on o1• under the Propelty. It
shall 15e Buyer's responsibiIit}j under this Paragraph 6 to examine the Property and to review
such 1•epol•ts Ur Uthe:l' d()t:U111.e17t9 it. deenlS I.leeeSSal')' to satisfy itself as to the presence or absence
of qtly such I-lazardous Materials, V\~thoul limning lll.e gellera]ity of the foregoing, 13uycr fut•ihor
aclcnawled~es and agrees that (a} Seiler is currently operatini; file "Lift" (as defined in Paragraph
18 below) ttt the 1'ropelty, (b) the disposition or removal of the 1,ift shall be gaverlled by the
-10-
\9?33b1b.1
terms of Paragtaph 18 belour, and (c) the Phase I vvas provided to Buyer <ls an accommodatiotl
and far infot•tllationa.l purposes only. flccordingly, tilt Phase I cannot be re]iad upon by Buyer
and Sellea• makes no representation or warranty to )buyer regarding the: h•uth, accuracy ar
eoxnplet.eness of tb.e in:Por.n7ation contained therein,
6.3 lZight to Inst)eet, Prior to d1e expiratiatl of the Feasibility Period,
Buyer shall nave the right, at its cost and cxpettse, t0 Co7tdllGt SL1Gl7 p11ySlCij1 inspections of the
Property as necessary .in order to determine the presence or absence of Hazardous Material on or
u.t7det• th.e Propert~~, Such. inspectlans by Buyc;r shall riot intel:fere with the ongoing operations at
the Property, shall be cot7ducted at t•easonab}e times and under reasonable circumstances and
shall be st.tbject to the prior approval o:i' Seller at7c1 Seller's right to monitor the inspection
activities, Buyer shall promptly deliver the results of such inspections to Seller Buyer
acknowledges and agrees that ~u1y soil san7ples ta]<en ti•om the 1'ropet•ty o.n 13uyet•'s behalPshall
be taket.7 via the split ;sample method and Buyer or Buyer's Gonsultant shall inlme:diately provide
Seller with a po1•tion oEthe sampled soli for Seller's }ndependent analysis, L~vllich u7depcnd.e.l7t
analysis, if undet•taken, shall be undertaken at Seller's sole cost.
6:4 Cleanup of Hazardous Material. If, prior to the expiration of t17e
1°easibility Period, either Sel}.er or Buyer determines that a lcgallyunrtcceptable level, according
to applicable governanental statldards, oI'H~uardot.ts Material exists on or under the Prolaet•ty,
thert.:l3uyer may, in BrJyer's sole discretion, terminatr; this Agreement. In such case, Buyer shall
bear its ot~~i1 inspc;ction costs, and the provisions o'f Paragraph 2,11 shall apply. If Buyer elects
not to sa terminate this ngrec111eut, then S'ellcr may, in Seller's so}e discl"etion, either
(1) teJaninate this !-\grecrnent, in L~jhieh event the provisions ofParagraph ?,1 I .shall apply, or
(2} commc;nce to remove such Hazardous Nla.terial from the Ptoperty in wlaicll evel7t. the Close of
L%scroLLr shall be delayed until followi.ilg Seller's aomplet}on of such rcntoval. If Seller
colnlnences to relrtove such Hazardous Material, Seller shall thercaftor diligently proceed with
such removal a#. Seller's sole cost and expense, and .iu accordance a~'ith rill applicable laws, rules,
anti regulations.
6,5 13u~er's .Inspection, If Seller elocts to retxaovc such Hazardous
Mater}al puxsuant. to Paragraph 6.4 abo~re, t.lpon eatrrpletion of such removal, Seller shall deliver
to I3tiycr and to Escrow bolder notice stating that such removal has bean completed, ~+~ithitl
thirty (~0} claps fallowing Buyer's receipt of such notice, B1tye1• s11a11 inspect the I'ropetty in
ordet• to determil7c the presence or absence of I Iazardous Material on or wader the Propct•t~ ;
.provided, however, that Seller shall have the right to reasonably approve I3u}per's t~geni Lvho is to
G011Ch1Gt SUC}] 111SpeCtion. I~ Shell 1nSpEetlOll 1'eLTealS that the level pt Hfl'Lal•do115 Matel'lal
remaining on ar under the PI•operly is at or less than the allowable level uncles app:l.icable
gavernnleJltal rules c7r regulations, then Buyer shall be. obligated to proceed to the Close of
Escrow, and i11c Close of Escrow shall occur upon the ~Iirst to Decor of (1) the C;lositlg Date, if'
sitGh removal oI• Hazardous Matelial is cc)nlpleted at such lime, or (2} vdithin two (2) weeks
tollawinl; Buyer's inspection.
6,6 Indenlnitica.t.}on, If the parties proceed t.o the Close of P;scro~v,
I3lLyCr shall 111de111n11y, defend and hold Seller harmless fi•on1 all}r anti elf claims; clenlands
(includitlg demands by any governlt"texxt~lt tt.gency}, .liabil.i.ti.es, costs, expetlses, penalties,
datllages, losses and liens, J11G1Ud1nQ~ WitlloUt ]1171.1tc1t1o1:1 i'l':aSO1Tal:71e altoll7eys' fees, arisiJlg out c7f
19'/:JaG5G.3
ar r~~ith respect to (1) Hazardous Matet•ial on or lulder the Property, or znigrat.ing to ar from Clle
Property at the Close of > scl~ow or released on or urtdcr the Property subsequent thereto, and
(2) any clean-lip of any ai7d ail Hazardous Material which might remain or subsequently be
placed on or'ander the Property, "I'hc indr:mnit}° pravideci for herein sha11 sul•v.ive the. Close of
Fscrar~s7l7.ea•eunder and shall not be mergad into the Cxrant Deeci.
b.7 Release, if the parties proceed to the Close of I~scro~v, then;
6.7.1 Buyer sand its employees, cantractors, a6cnts, and each of
then.7, and its successclrs, assigns, heirs, devisees and executors, agree to forever z•elease,
discharge and acquit Seller and its parent, subsidiary and/or affiliate corporations, partzlet'sllips
(general and limited), partners, directors, olTicers, sharcholdel•s, and employees, and ea.cll of
them (collectively, "I2eleas~:es"}, o.fiand from any and all claims, demands; obligations,
liabilities,rnclebledness, breaches of. duty of any relatianship, acts, O1n15S1anS, misfeasance,
171alieasa[lce, Cat15E; Or Cat1SeS Of aGt1O11, CUStS, SL11T15 Of 111O71ey, ttCCOlirltS, (:at11pC..nSatiU11S,
COt1Cl'aet5, CO11tCO~1e1'51eS, pl'On115GS, dalllage$, GOStS, lossc;s and expenses; ctf every type, 1ci31d,
nature, descripCion or charactc;l•{inG[ucling ~ui.tllout limita.tionreasonable altarlleys' fees)
(collectively "Claims"), .and it•respcctive of ho~,v, r~vhy ar by reason of what facts, whether
heretofore or now existing, or wllicll ccluld,' mitl7t or array be claimed to exist in the .f:'4lturc,
rvheth.cr knorr~n or tlnknowzl, suspected or unsuspected, linuidated or unliquidated, each as i f
fully set forth herein at length, which in any rva}' arise out crP, or are connected rti~ith or relate to
(1) any 7lazat•dous Material 017 0l• ttzlder the Property, or u7igrati.ng to or :from the 1'ropeJ-ty, at the:
Close of Lsca•orv or released on or under the Pl•operl'.}+ subsequent thereto, and (~) any required
clean-up of any and all 1-Iazardaus Mnterial which nlig.ht remain or subsequently be placed on or
under the i'raperfiy, I11(;.l Ltding rh+.l'C11OL1(: Iitllltatian ally p81•SOnal lal)UrICS Sltffel'Cd Il}' aa7y person or
p4rsons. The release provided for herein sJlall sul•vive the Close o'1' Escrow hereunder and shall
not: be nlez•gc:d into the Grant Deed.
6.7.2 I311yt;1' atltl its SLICC4'SSOrS, assigns, heirs, der%isees and
executors, abl•ces, represents allcl warrants that the matters released in I'alagraph 6,7,1 hereof are
not limited to matters wll.icl7 al°e ]ulo~val or disclosed, and hereby waives any and all rights and
benefits rvhicll it no~~~ llas, or i71 the future may Have, canlerl•ecl upon at b}1 virtue of the prarrisloals
of Sectian 1 S~I2 of the: Civil Code of th.e State of California whi.c.l7 provides as follorr~s:
"A GLii~IIRAI, RELEASE DUES NOT EXTEND TO CIyAIMS
1VHICII'lITE C;REI.~ITOR DOES ~t~t0"f T~NO~V OR SUSPECT
`I'U I"sXIST IN HI,S OR III:~R FAVOR AT THE TIME OIi
EXEC'l)'I'INCi TI-IE R.FI,E/~,SE, PVT-IICII (F TCNOW?~l LAY 1=11M
UR 1-IIR 1\~IUST IIAVE MA'T'FRIl~LLV Ar'I~T'C'I'E,D Z~IIS OIt
HLR- SL'~1'TLEMI;N`I' WITH TH1; DEL3".1'UR."
Buyer's 'Lnitials
Buyer also fu.l-thcr expressly waives sold relinquishes all statutes, rights, remedies anal benefits of
all othea• jurisdictions, state and federal, wh.icll are all of the same or similar import oz• effect as
Section 15=42 of the California Civi] Code.
_12
19'73363Cs.3
Buyer's Initials
7n cortziectivn with the release contained in 1?at•agraph 6;7,1, Buyer agrees,
represents and warrants tlr.at it realizes and aclcnowlcdges that factual matters now u3yknown to it
may have given. or tx>ay hereafter,rive rise to Claitrrs which are presently unkno4vn, unanticipated
ttrul unsuspected, and further agrees, represents and 4arrants that the release contained in
Paragz'apkr 6.7,1 has been negotiated and agreed upon in light of Chat realization and that it
nevertheless hereby intends to release, discharge anti acquit. Seller and l~.eleasees front any such
unlcnowr~ Claims t.o the extent provided herein.
6.7,:1 Bu}rer hereby agrees, represents anal warrants that. it has had
ad trice of counsel of its o4vn choosing in negotiations for anti fhe preparation of this tlgreement
(including, ~~~ithout lizilitation., Paragraphs 6, 7.1 acrd 6,7.2 herei.n), that it has read Paragraph 6.7.1
hc;reof and Paragraph 6,7.2, that it has had such Paragraphs lolly cxplainec) by such counsel, and
that it is fully aware ox their contents and legal effect.
6.7,1 Buyer ackno«rledges and agrees that no employee, agent,
.legal counsel, or other representative of Seller; including Seller's Rrol<er (as de{mecl below) has
been autl3orired to make, anti in executing this Elgreetrzent Buyer.has not relied upon, any
staterr~ei~t of Seller, Seller's enaplayces, agents, Seller's Broker, or legal counsel, and shotitld
Buyer be zzi:is(aken in its beliel'vvith regard to some issue affect or law regarding the matters
herein released, it specifically agrees to assume; the risk. of such mistake, if any exists. Buyer
hereby ackpolvledges that 13u}rer is rapable ot'perfoz•rning or causing to be performed a t.horar.igh
and indcpender3t inyestic;atian, analysis and evaluation ol'tlre Property anti al] othez~ aspects a'f
the tI•ansaction coraten~plated by this Agreen•3ent, and that. it has }red an opportunity to make, and
to have its experts make its anti their investigation regarding the platters llerein rcleasec{ and al,l
laws, rules and zegulatior7s rel.aCecl tl~ercto,
7. • Removal of Personi?I 1?ro~~~ty. Prior to the Close of 7 ;screw, Seller shall
remove from fire Property any items of personal property owned by Seller. Such removal shall
not. affect the amount. of the Purchase Price or an}= Other l'erzns or conditions of• th.is ~lgree3nent.
Ezitr•y •
8,1 Right of 1nh•}t• 13uycr and its representatirres, employees,
contractors, agents anti designees shall have the right to enter upon the Prolacrty, at Buyer's sole
cost anti expense, {n order to inspect anti investigate the Pt•opel-ty and to concluc# any and all
surveys, tests and stu.dic:s Buyer deems necessary or comrenient, provided that Liu}=er shall
irnnlediately restore airy damage dozre to the Property as fire result of any sucl.~ tests, surveys or'
studies. Prior to any cirtry tt.potz the Property, Buyer shall des.ignatc in writing to Sr;Iler one or
rtrore repr•csentatives of Buyer wile shall accompanJ' any of such pcrsans each time they enter the
Property. Such entry or reviev,J shall be made onl}' af}.er reasonable advance written notice to
Seller b}= .Buyer {in. no even.t.less than 2r{ hours advatrce notice) and at times reasonably
acceptable to Sellc;r. Buyer shall indemnify anc~ defend Seller against and hold Seller and the
Property free and harpZless from any and all claims, demands, liabilities, costs, expenses,
17enalties, damages, losses azrd liens, including without limitation, I•easonab{c attorneys' fees,
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\)73;G3G3
arising out of an.y suclx entry by I3uyc:r or its representatives, etrployees, agents, calatractors or
designees. The indezlxnity provided .Car herein shall survive the termination ofthis t~-gxeetxxent ar
klxe C.i.ose of Bserarv het•eunder anti shall not be rncrgecl into the Grant .Deed. The inspections of
the Property s11a11 be subject. to the terms o:l'thzs Paragraph 8 and shall be considered elltrics upon
t11.e Property far the purposes of this Paragraph $.
$,2 Insurance. Commencing with Buyer's execution of this
~-lgreenleut and at all titn.es prior to the Close of Escrow, Buyer shall have in r;l'feGt wo.rl:a~•'s
compensation a.nd enxplayer's liability insurance ruitll statutory limits of coverage as required by
la~~r, and. with a limit of liability a:C at .least ~~.,000,OOU/$~#,UOO,UUU each occurretxee/aggregate,
ilnCl CUinlne:rCla1 general liabilit}' 1nSUritnCe nam91'lg Seller a5 atl aCldltlanal lnSln'CCI, with Iinlits of
1101 ILSS than ~i2,00U,000 each occurrence, with $4,UUU,000 aggregate far badrly injury, including
death z•esultzng therefi•ot11, and braacl form property clazllage, ineludin.g collapse and undc;rground
prapez•ty damage, anti r=,=ai.ver of sttbrogation; 'These requiz•enlents may also ba s~rtisi:red with
coverage provided through a municipal self insurance pool.. 'friar to entering the Property,
13u.yer shall deliver to Scl.ler certificates of insurance evidencing such cor=crags azxd further
eviclcncing that such coverage ma}~ only be terminated or modified upoil thirty (3U} day's pz•ior
tivritten notice to Seller, These covenants in this Paragraph 8 shall survive the Close of Lscrow
anti slxall not be txlcrgcd into the Grant. T~eed•
9, Cozxdc:nlnatian; 17amag:e and laestruction.
9,1 Condezntxation, This Agreement is subject to the provisions of
California Civil Code Sections 1662 (the "Sttt.titfe"). For the puz•poscs of the Statute, a taking by
orninent domain of a portion of the Property shall bs deemed to affect a "nxa.terial path" i 1• the
Cal<.ia1g exceeds ten percent (I U%) of the grass lane] area oI'thc, l~and• 1t is lxez'eby understood that
iri the event ol'a taking of a "mafierial part" of the Property, then Buyer slxall not be obligated to
praeee;cl fie the Close of > scrow 4leroundez•. In d1e er<ent of such a condemnation of less than a
"nl~iteri.al Ixart," ~3uyer and Sc11er shall, nonetheless, pretest]. to Closing without reduction ot•
abatem~:nt of the Ptn~chase Price, but Seller slxall assign to Buyer all of Scllcr's rig:ht to recover
fi~on~ the condanulitag ftuthority at the Close of ~scrovv, Seller agrees that it will, both before and
oiler L'he Closing Date; execute such documents or instruments artd further assurances as Buyer
may reasatlably request in order to facilitate such recovery by 1-3uyer and Seller will cooperate in
a.ny tnarxner reasonably requested 1?y Buyer, ilny such assignment shall be without
representntian or ri~arranty by 5e]ler.
~•2 Damage and Destruction. For the purposes of the Statute, damage
or drstructian to the Property shall be deemed to affect a "zxlaterial part" if the cost to repair such
damage (as reasonably doternl'ined by Seller) exceeds ~~165,ODU• In the event of suc11 damage
aFfecting doss than a 1ltaterial part of the Property, E3ttyer and Seller shall, nonetheless ,proceed to
Closing without abatemenC ai' the Puz•clxase Price, but Seller shall assign to Buyer proceeds from
any casualty insw:ancn received by Seller on ace.ount ol• any such damage which has not been
renl.e.died ar repaire;d by Seller prior to the Closing Date;, Seller agrees that it ~a~ill l?c>ih before
atxcl after tlxe Closing I7atc execute such documents or instruments and fut•ther assurances as
Buyer may z•easonably request in ardor to facilitate such recovery lay Buyer and Seller rr=ill
coaperato in qtly manner reasonably requested by I3u}rer• A.ny such assigntlxent shall be ~rrithaut
representation or ~v<u~•anty by Seller.
1 ~}
~~a~~x~3~.a
10, Deliver>~ of possession• Subject t.o the rigl7ts of all tenants on the
Property, if any, Seller shall deliv~r• possession of the Properly to Ruyel• at the Close of Lscra~~+•
11, Delivery of Documents Relating to the Proper ~7Jithitt te.n (10) days
after the termination of this Agreement and the L,scrorv (il`al~!plicablc) for whatever reason except
for a default b}~ Sellcr,l3uyer shall delayer to Scllcr, without warranty and to the ettent
ttss.ignab[e by Bayer, at nn cast to Seller, (a) all technical data prepared or obtained b}r Liuyer, its
.agents or contractors iI-I eonnectiou with the Property, including, but not limited to, land plans,
leaps, engineering studies, soils stttclies, geological studies and other engineering infor.n'lation in
Bilycr's possession or under Buyer's control, (b) all tivritten documentation prepared ar obtained
by Buyer or filed with the applirable governmental authority in connection with C11c Toning
Approya.Js, inchtdirtg without lilnitati~n, applications, plans and specifications and enyiranrrienta.l
reports, and (e) all other ~~n•ittcn irtforlat.ation relating to the Propct•ty in any rnarlner whatsocver•
that is in Buyer's passessiolt or under I3uyet•'s contrnl, 1nCludttl~ 1vit1]oltt 11111tt~1tlOr1, appraisals,
drawings ant! slcetches, n~emorai~da, construction ciorumGnts, reports, studies and other technical
O.t• htlsiuess 1nf01'Il'!t1t10n ((a), (b), and (c) are collectively referred to herein as, "Docut7~ents
Relating, to the l'ropcrty"), Notwithstanding the 1"oragoing, .Documents Relating to the Property
shall not include Buyer's prolarietary ini~lrmation relating to Buyer's patentia.l use of th.e Property,
IllClllCllllg architcetural studios anal evt3lt:!ations. A11 Documents Relating to the Property shall be
the propei-t}J of Scllcl•; laroylded, .l~awever, that I3t!yer hereby corltirms to Seller that all
1ocuments Relrttirtg to the Propert}r preparc;<I by Buyer's indel:>el~dent consultants are assignable
to Seller. Buyer shall keep ~tnd shall require its agents L'o ls.eep all such information confidential
both prior to and after any teI-rnination of this Agreement• Notwithstanding anythins~; io the
conb~ary cont~Iinecl in Qlis Agreement, it this Agleement is terminated in accordance ~yith
Paragt•aph 2.11 aboye al:Itl Seller is not in default of this Agreement, Seller shall not be required
t.o cieliyer any portion of the Deposit _I~reviously delivered to Seller or any .athet• funds to ~•vhich
Buyer is entitled and Tascrow Ilolder. is irrevocably authorized and instructed not to deliver the
1:?eposit or fin}~ other funds to 4vl~lieh Buyer is entitled until Buyer leas complied t~~ith the
obliga.t.ions set fol'th in this Pal'agraph 11.
12, Commissions, i3uyer and Seller represent and v,Jarraltt to One a.nather that
no broker, salesman or tinder has been engaged by them in colulectioaa with the transactions
coni:emplaiecl by this Agrecmcrlt othel• than CB l~i.chard Gllis, Inc. I•epresenting Seller ("Seller's
Broker''). Seller shall pay Seller's Broker tlvauglt Escrcati~f a eotnlrtission upon the Close of
1?scro~v pursuant to a separate a.greernent between Seller and Seller's Broker. In t}te event of a
claim :for brokers' or iinclers' fees or corrlrxlissians in canneciion with [hc: negotiation or
e~ecutial~~ oi'this .A1;reenlent or the transactions cont.cmplated hereby, Scllcr stroll indemnify,
l•Iald harrltless and defend Buyer teorn and against such claim it' it shall be based upon any
statement, !-epresertlation, ar agreement alleged to have been made by Seller (including any claim
asserted by SeIIeI•'s 13rolccr), and 13uycr shall indemnify, hold harmless and dclend ~cller if such
claim shill be based upon any statcnaent, representation, or aga•eelaient ,llleged la ha~~e been n~ad.e
by Buyer (excluding an}r claim asserted by Seller's Brok.er).
13. 1.IC?U11':)ATTD D/1!\~AGTS,
13.1 BCJYER'S bFI~AUI_.T, NUT~'1'['1-ISTANDIIgCi ANY 0`1'H1~R
PROVISfnl\I IIIRI;IN CQNTAINLD, IF THl1 SAT,L OF T.l~l PRC7PER"1'Y IS NO"1'
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l~I733636,3
CUNSUivIMt-1TED I3Y R>~t150N OF ANY DEFt1~ULT BY }3UYFR, 'I'I-ILN SELLER. SHr1LL-
BE ENTI"PLED TO LTQUIDATEIa DAMAGES TROIvi BU~`ER IN THE AMOUNT OF THE
DEPOSIT (.~1 UU,000). BUYER AND SLI,LER HIRE:BY ACI~NO~VI,EDGI:'I'i-iAT
SELLER'S DAMACiES ~,~SIICH WOULD RES~LILT FROM BUYER'S FAILUI~E'I"0
ACQUIRE TITS PROPERTY FC~R ANY REASON ARE IMPRACTICABLE, AND
EX'I'REIvIELY DTFFICUL"I" TO ASCERTAIN, AND TIIE AMOiJN'1~ OP TIIE DEPOSIT IS A
REASONABT...F ESTTNIATE OF SUCH DAMAGES. THE PAYMEN`T' OF SUCI-I AMOUNT
AS LIQUIDATEIa DAMAGES FOR 1"'I~E. BREACI-I OF BUYER'S OT3LIGATION TO
PLJIZCT-TASI3 THE PRUPL;RTY UNDER TIIIS AGREL:MI:;NT IS NO'T' INTENL3EI7 AS A
T~ORFEITtJT~E OR PENALTY WITHIN THL \dEANTNG OF CALIFORI~tTA CIVIL COllL
SEC`],I.ONS 3275 UR 3369, I3tJT IS INTENDED `I'O CONSTl"TU"I'E LIQtJTDATT;,D
DAMAGES TO SELLER PURSUANT'1'O CALIFORNIA CIVIL CODE S.I;CTIONS I67I,
1676 AND 1677. 3'HE PAR`T'IES I-1AVE SET FORTH THEIR INITIALS 13II.~()W 'f'O
INDICATE 'T'HEIR ACrREEML;NT V,rTTH "CITE LiQUIDATE,D DAMAGES T'R.OVISION
CON`I'AII~li3D IN TITIS PARAGR.API-I. NOTWI'I"I-IS`I'AND]NG ANY"I'IIING TO TiIF..
CONTPv1.RY CON'T'AINED H-L~,IZI3IN, THE PROVISIONS OF THIS 1'ARAGIZA.f'I-I AR1/ .NOT
TN'1.CNDED AND SHAI.,I.: T~TO`I' I3E CONSTRUED '1'0 f.,TMIT OR NI GA"1'E i3t7YER'S
INDEMNITICA.'I'ION GI3I.,ICre1'1'IONS AS SET FORTI-I ELSEWTIERT; 1N THIS
AG1~EEsMENT,~~ r f
i ] ~ -
~y` /j f ~1 F(~ --
Set er's T:~~iCia~ Buyer's Initials
I3.2 SELLER'S DIF,~~ULT. N()TWITIISTANDING ANY O'T'I~EiZ
PROVISION T-TEREIN CONTAINED, IF TIIE SALE OF 'T7lE PROPER"1 Y IS NOT
CONSUI~~iMA"1'EL7 I3Y IZ.I ASON OF ANY DIarAUL T I3Y SELLER, 1'I1EN T:3U~`ER S1=TACT
l3E EN'I'1`I'LL:D, AS ITS SOIaE AND EXCLUSIVE REMEDY, WI~E'1'T~IER AT T.,AW C)R 1N
EQUITY, ET'I'ITER (A) TO TERMTNA"~I'E'I'H1S AGREEMEN`:L'' AND RECOVER ITS
DCPUSI'I r1ND ITS AC"T't.lAL, IZEASONAI3LE, OU`["-OF-PUCICE"I" EXPTINSES TNCUP.I:LD
IN C:ONl7I.tGTTNG ITS DUE U1LICrFINCE I'N'VESTIGATION OF TI°IT' PROPER:"I'Y III AN
AMOUN'T"NOT ~1~0 EXCEI~D FIFTY THOUSAND DC)IaLARS (50,000) (7'T-TT~, ".DUI
DIT...IGTNCE REIMI3URSEnlIEN"I"'), OR {.13) IN LILU Oi~ 7'ERNIIN,47'INC.'T TI~TL'
AGR~;IMI N'1` r1ND RLCOVERING ITS .DE.T'OSIT r~ND 'i'1-lE DUI; D1L.IGENCI;
RL;TNIBU:RSEA~TrI~lT, BIJ 1'LsR SI-IA:LL BP; ENTITI.,ED TU 1'L-RSUE SPECIFIC
PL,IZl10RV:IANCE OF TINS AGREL:ivIEN'I' ~VITI-IOUT RTGT-IT TO ANY I)AMAUES
(OTHER ~l,T-IA.N A RETt.J.RN OF 1'I~fI~. DEPOSIT AND TI-i.E TRUE DILIGENCE
IZEIMI3UR.SEMIaNT IF SPECIFIC PERFORMANCE TS NOT GRAN"rED) OI;. O'T'HER
EQUI7'ABT.,.E.RIaLI]sF WI-Lr-ITSOEVETi, BU"J' ONLY` IF BUYER FILES S1JCH SPL,C;11~1C
PERFQRN.tANCE t\CTION TIIIR'I'Y (3U) DAYS AFTER THT SCHEDULED CLOSING
I~A']~:f, ANTJ T3iJYER'tS FAILURE TO 1NT"I'IA'TE SUCH ACTION Wi'T'T-TIN SUCH.
'THIR"I"~S' (30) DAB` PERIOD CONS"I'I`I'UTL,S AN ABSOI.,tJTE F3F1R PROM BUYER'S
IN,STITU"1 TON OF ANY SUCH PRUCELUI.NGS, DU~'ER ST-Tt1.IaL NOT I31=, LNTi."I'I,ID TO
RL;C~ORD A LIEN OR LIS I'ENDINS AGAINST THE PROPERTY OT'.HER `I`I-IAN L~~
CONNECTION AND CONCURRENTLY WITI-I THE 1~1LING OIL SUCf~I SPf:sCIf~IC
PERFORIvtANCE ACTION,
_T6_
1g733GJ6.3
Seller's Inltia s
Buyer's Initials
1~1. Attorne's' Fees. If any action oar proceeding shall be brought by either
party in order to enforce the provisions of this Agreement, or to collect damages as a result of" t.lle
breach of any of the provisions of this Agreement, whether ol• not sclch action or proceeding is
pursued to a ,juclgrllent, the prevailing part}~ shall be entitled to recover all reasonable attorneys'
fees incurred. in connection therewith, inelluling costs.
1 S, Notices. Whenever Escrov~~ Holder or any party hereto shall desire fo
deliver to the other any notice, demand, request or other conllnunicatiorl, each such notice,
demand, request or other c:onununicalion shall be in ~~~riting, shall be biven 1.7y personal delivery,
b}r registered or certified United Stafes nlai:l, retm•n.rcaeipt requested, or by overnight courier,
postage prepaid, or by facsimile, addressed as follows:
TO SJJLLI:R; Vl~R17..ON CAI~II~ORNIA 1NC.
c/o Vernon Corporate Real Lstate
18508 Sal1d Cally011 AV~llue
Irvine, CA 9261$
Attention; 'Z'any ~~Tallaee
VSO heal Bstatc
Fax Na. 949286-7410
~VITI1 COI'I~S T0: l~~IcGuireWoocis LLI'
.1800 Centul•y Park Bast, $'h T'loor
Las Angeles, CA 9UU67
Attention: Joan A, Wolff, Bsq,
Fax No. 310-31 S-$210
C13 Richard Bllis, Inc.
clo Verizon Corporate Real Bstate
112 S, Lalcevierv Callyorl.Rd. (CASOICW)
'Thousand Oaks, CA 91362
Attention; Karolyn S. Lucci
1~ax Na, SOS-379-1454
'I'O 13UYI;R: `1'otivn ofLos Gatos
1101;. 1Vlain Street
P,O. Box 949
Los Gatos, CA 95031.
Atteutiorl: Orly P. ICorU, Fsq,,
Town Attorney
Fax No. x-10$-3:54-$431
TO 11SCltOW IiUI,ULR; i~'iilelity National `I°itle
801 S. Fil;uerorl Street, Suite $70
Los Angeles, CA 9001'7
~17-
\)7336~G.3
Attention; Linda l~.ane, Escrtazv Oili.cer
Fax No. Z13-6~9~9330
A.ny such .notice, demand, a~c;cluest or other communication shall be deemed effective on the cta)r
of actual d.elivcry or refusal tv accept as sho~nrn by the addressee's r~tw•n receipt or fax
conlirmativn, if the date vIt which any notice required to be delivered hereunder falls on a
weel<encl or legal holiday, then such notice may be delivered on the next business day
immediately fo]lowing such weekelzd or holiday, 1•f the date of Closing, ox any other date, such
as the expiration ol'the Feasibility Period fall an a ~veekencl or legal holiday, then such date shall
autoltlatica.lly be extended to the next business day immediately following such ~~,~eekend yr
holiday, Tlae 1'oregosng aclch•esses nzay be changed by notice fiiven izz accordance 1a~ith this
1'aragz•aph I S.
l C. Anrcntlment• Com lete Agreement. All anzGndments anti supl~letuents to
this Agreement nntsC be in t~rritin~ and executed by Buyer anti Seller, ill understandings anal
alreen~eatts bettiveen the parties (including any printed of[er of sale provided by Seller to l3uyerj
regarding the Property are merged in ibis ~1:greemcnt, which alone folly anti eonlpletely
exln'esscs the agrcemezzt. of the parties regaecling the l'raperty• '1'11is Agrecnlent has been entered
Into a:lte:r 11111 investtgat.ron of the facts by botl.~ patties and ncitlzer paz•t.y has relied on any
statement or representation not erribodied iu this document. This />greement has been drtlftecl
through a joint el'ti)rt of the parties and their counsel and therefore shall not be construed against
either v'1'the parties as the clI•aitsperson.
l /. Governing z,at~, •1•his Agreelnenfi shall lie governed under tlrc la~~~s of the
,state of California. Venue for any legal action concerning this Agreement shall be in the Santa
Clara Superior Col.u•t.
18. ~~di•~ulic Veliicle);i1't. 1:3uyer aclcnv~`~leclgcs that Seller currently operates
vile (1) in-~rou.nd hydraulic vclticie Iif't (the "I,iff.") al the Property. (Jn yr before the expiraiivil
of the l;easibility Period, Sc11cr shall conlmcnce (a) the removal vf~Qze I.,ifl :from the Properly,
(b) the rernctlitttion of hazardous Material cootaminzrtion, if any, located on or under the
Prapel-ty ~~~lzich eemediation .is required in can.nec;tion t~~itll such removal. of t:he llift, if any,
(inch-dirll;, without limitation, the renaediativn UI'l=[aarclous Material contamination (to the
exterl# required by applicable; law), if any, relcasecl or discharged frarn the Li'!t), in each case in
accoxdanc:e wvith, and Lo the extent required by applicable la~v, (c) the restoration of tlae areas of'•
the Property affected by such rezlzoval tv a condition reasonably eq>livalent. to the condition of
the 1'xvporty prior tv such removal, and (d) the obtaining, if rerncdiation of the hazardous
1vlaterial is required and if othcr~vise required by al7pticab.le law (as mandatc;cl by the agency
providing regulatory ovexsigllt), of a "ta.o further autiozl° letter fI•oyn th.e Satlta Glara County
Central l~irc Protection District (collcctivcly, (a}, (b), (c) and (d) shall be t•eferred to as the
"Removal ~~%orlt"). Cornnzencelrlent of'the I~enlvval GVor•]c may consist of applying i'or
applicable permits and approvals to perform the Removal VJorit, Sellca• shall diligently prosecute
the Removal t;~vrlc, and shall undertalGC and complete the Removal Warlc at Sel1e1•'s sole; cost a.nd
expense in accordance tix~ith all applicable ]a~vs. Upon notilicatiorl tv Buyer from Sellc;r that
Seller' has completed the ltetnoval 1Vvrk, Buyer shall have thirty (3t)) clays to inspect the
Relzioval ~~'vrk. (the "Removal ~~'vrk inspection Period"). During such period, Buyer's
envirann-tental consultant; ~vhieh consultant shall have been selected by 13uycr and 4lpprovecl in
-l8~
19733G3b3
writing by Seller (acting reasonably), shall review and approve the completion of tI1e Retnova[
Work, which approval shall not be'ttnreasonably withheld, conditioned or delayed. Bttyet•'s
cil.vironmenta] consultant. shall be deet-~1ed approved by Seller i f Seller does not respond. to
Buyer's xequest Icir approval within tti~+o (2) business days alter Buyer's request For apprQVal. In
the event Seller disapproves Buyer's envirailinental consultant, the Removal Work inspection
1?eriod shall be extended by an additional five (S) business days to enable Buyer to identil:y a.nci
obtain Sc[lcr's approval of a different environmental consultant. 7f Buyer fails to notify Seller
~vitl-iin the Reniaval bVork Inspection Period, the Removal Woz•lc shall be deemed appraved•
Upon receipi of the aplroval (or deemed approval) by Buyer's consultant, Seller's obligations
with respect to t11e Renlova[ Work shall terminate, Upon completion afthe Removal Work {and
Buyer's environzuent~tl consultanNs approval or deemed approval of same), the environmental
indemnity and the enviro.n.inental release contained. in 1'at•agraphs 6.6 and 6,7 above shall apply
with respect to t11e Removal Warlc, the Lift anti any I-Iazardous l~~lttterial associated with eitllex of
both, The parties hexeto ackna~vledge aitcl agree that as long as Seller diligently prosecutes the
Removal Work to completion, then Seller shall not be (i) deemed in default of this Agreement, ar
(i.i) obligated to pay •any charges (atller than the cost of performing the Removal Work) in
connection with the Lift, Nat.wii.fastanding anything in this Agt•eeinent to the contrary (including,
~~~itllout .1it11itation, Paragr'ap11s 6.~1 and. 6,5 above), Buyer acktla~vledges and agrees that (w} the
Removal Work may not be completed prior to the Close of);scra~v, (x) the Close of Lsero'cv \vill
not be dslziycd far the ptit•pose of t11.e cailtpletian of the 1Ze;tnoval Work, (y) Buyer shall
cooperate 4vit}1 Sellet• in coiulection wii:h the completion of the Removal Worlc after the Close ol.'
I:sscrorv, if applicable, atld (z) Seller shall have reasonable access to thG portion of the 1'ropr:t•ty
containing t11e Lift: in ordet• to permit Seller to complete i.he Removal Worl: after the Closing
Date, if applicable. I3u}~er shall also etxter into such fttrtller agt•eenlents ztnd graalt such further
per111isstons as teasanably necessary for Seller to aotrtplete t11e Removal Rroi•k. "I'he obligations
of tlae: parties provitlt;d :for herein shall survive t11e Close of Escrow hereunder and shall not be
nlctgcd into the G1•an(: Deed•
19. Cou.ntcrn~u•ts, Zf.~Ftdila~s ~,nd Detialecl Tern-is. T11is ~grec:nlent may be
executed in several Counterparts each of which shall be an original, but. all ol'such counterparts
shall constitute one such ilgreenlent, The headings used herein are for convenience only and are
not to be construed to be part o1'this Agreement, For the purposes of this Agreement, {a}the
term `'ulalud.i.ng" means "It1ClLtdllig v1'1thOUt 11n11taf10r1,'' and (b) 4vhetl a tithe period is speeifiecl
in this Agreement f•ar the per:(ornlance of an act oi• the occurrence of an event, `;days" shall tnettn
"calendar days,'' unless other\~~ise specified herein,
2.0, hlo Offer, Submission of this Agreetrierit .tor exan-tinatioil or signature by
13uyer is ilot effective as an agrecrncnt to sell the Property or atherw~i.se until execution by anti
deliver, Co both Buyer anti Scllec of an original of this A.gt•eet~lent•
21, T~hnL oi• tl~e Essence. Time is of the essence of this Agree.~lxeni.
22. Waiver. Tl1e waiver by ono panty of performance of any covenant,
condition or promise s}iafl not ialvaliclate this AgreetnenC, nor shall it be cansidet'e;d to be a
waiver by it of ally other covenant, condition or protllise. T11e waiver by either oi• bath parties of
the time for performing any act shall not constitute a waiver of the time tar perfarmialg any other
act ar an identical act required to beperformed at a later i9n1e, lxcept ~zs specihcallyproviclecl in
-19-
\9733636.3
Paragraph 13 above, the exercise of any ren•tecly provided in this Agreement shall not be a waiver
of any other remedy provided by law.
23, Thircl Parties. Nothing contained in this Agreement, expressed or implied,
[s intended to confer upon auy person, atJaer than the parties hereto and Choir successors and
assigns, any t•iglits or .remedies under ar by reason of thi.5 agreement.
2~1. Severability. If any one ar I11at•e of the provis[ons contained u~ this
Agreement shall fox any reason Ue held to be invalid, illegal ax unenforceable in .any respect,
such invalidity, illegality aa• unanfoxceability shall not affect any other provision hereof and this
Agreement. shall be canst~•ued as if such invalid, illegal or waenforoeable pl-avision had nevel•
.boon contanc;d herein, utxless such r'nvalidity, illogality or unenPaxccabi{ity materially affects the
fransactiotxs contemplated by fll:is Agreement or the ability of either l:~arty to perfart>1 its
obligations wilder this tlgreetrtt;tlt. In such case, e.ithex party trtay terminate this Agxeetrtent and
tl1t Escrow oI1 written notice to the other paI•ty given no latex than ten (10) business days attet• the
p~11•ty giving such .notice becomes aware of such invalidity, illegality or unenforceability, and the
provisions of Paragraph 2. J l above shall appl~f.
25. ;1.'ax-De:farred ExchatYS;e. )/ach party shall reasonably cooperate ~~rith Cho
other if such other party elects to cith~er acquire the Property or con~ley the Property in
connection with atax-defet•I•cd exchange within the meaning of Section ICt3l of the lntel•nal
Revenue; Carle aE 1986, as amended, provided tlxat (a) either party's election to e['fect a fax-
dc,ferrec} exchai~~ge s11z11 not create ally additional conditions to the Close of Escrow ar extend the
Closing Date; and (b) Scllex slxal.l not be obligated in any event to fake ar receive title to any
other real property in connection ~a~ith such exchanle, Any such exch.Ltnge shall t7e accoinplishc;d
b3' supplct-nental instructions, exchange clacunlent.s and an exchange ~icconlmadatar, if any,
reasonably acceptable io both parties. The part}7 alec:fiing to enter ilitn a tax-cleforred excl~~inge
shall indemnif}~ and hold the other party harmless ft•on1 and against any and a}1 liens, claims,
darnages, liabilities, .losses, costs tulcl expenses, iricluditlg reasonable atta.xneys' fee;;, arising out.
of or relating to thi; cooperating part}~'s participation it1 tl.1cCax-deferred exchange conternpJated
by this Paragraph, `l'11c Close af•>~.scrow shall :not be conditianecl ot7, tl~e closing of airy laraposed
tax-deferred exchange, and if swell proposed fax-deferred cxchtingc is not in a position to close
cattcurrertt.ly Yvifh the Close of F..scrorv, J3uyer shall 1leverlhelcss be obligated to carnpie;tc the
purchase o1' dle 1'raperty fi•orra Seller on Cho Closing Date an the terms turd conditions of this
Agreement.
2G. f\dditional Documents. T_;ach party herat.o agr4es to porl'orni any further
acts a.ncl to execute anti deliver any fiutliei• documents ~~~hich maybe reasa~labl3+ neccssa~•y to
caxt•y out the provisions of this tLgreenaent,
27. Assi~mant; BilZdit~Effect. This ts,.greement shall naf be assignable by
]3uyer to ~tny otllex party vvitholtt the prior rvriitetl consel~f of• Seller, which Gollsent Se}lei• nay
~•~;.itlZhalcl iu its sole discret.ioll. 1'or purposes of this Paragraph, any agreement entered into
bCi~veen [3uyer and a third patty prior fa the Close o1'Lscro~i~ t.o sell ar at:hc:r~vise transi'cr any
irltcrest ia1 t17e Property, ncluclilxg, rvitl7out iilnitatian, the execution of escrow instructions
canTemplating such a sale or Transfer shall be deemed an assign.tnent. Any such assigntllent
without Seller's consent as provided herein, shall be deemed a nl.atet•ial breach of this
20
t9733G36.3
Agreement, and Seller, rnay, in Seller's sole cliscret.ion, elect. to tern7iuate this Agteement, in
w17iG1] case this Agreement shall be null and void, Buyer shall have 17v fuliher tights hereiulder,
anal Scllel' shall be entitled tp damages as provided it) T'al•ageaph 13. Subject to the 'Pvregoing,
this A~,reement shall be binding upon the heirs, executors, administrators, successors and. assigns
of Scllel• and Buyer,
28. Waiver of Trial b Jul•~'. SLI.,>•,f R AND BUYER 1<N(~tiVTNCiLY,
VOLUNTi112.ILY ANI7 INTENTIONALLY ~~'AIVE (TO T1TT EXTENT l'IRMI1"lED T3Y
APPLICABLE I-,AW) ANA' FZTGHT "I'TIEY 11~IAY IIAVIJ TO A TRIAL aY JURY UI~ ANY
171SI'UTE ARISING UNDLR OR REI...ATING TO THIS AGRFEML•?NT, t1ND THE I~AR`.fIE.S
AG.R.F3E "J'TlAT ANY Sli`CII T71S1'IJTI1 SkIALL 13L TRIM-D F3EFORL A JUDGE SITTINCr
WITHOUT A JLIR~',
2c). Inde elldet1t Counsel, Each party acla7owledges that i:t has consulted with
and 17z1,d th.e opportunity to consult r~rith independent counsel of its owtt choosing in connection
rvi:th the 1]egotiat.ian and execution oftl]is Agl'een]ent.
~n. I~ittt'ttlt AGf'.
30.1 Seller shall take any actions t'llat may be required to comp)}1
with t17c terms of the USA patriot Ac:t of 2001; as an7endcci, a17y regulations prvmulg~it.ed antler
the foregoil7~ larv, LxecuCi.r~e Ol'dc.~iNo. 73?2~[ oi1 Terrorist Iiinancing, a17y salletions program
adu]il]istrated 1,y'the LJ,S. I)epartlnent of'I'reasury's OLl:ice of l~ol•eig11 Asset Contl•vl ()r Financial
Crinli;s Enforcement A?etrr~arlc, or any .other ]ar•~1s,1•egulatiol)s, executive order's ol• govcrnlnent
pragt'ams clesigrled to cvmbat tel'torislxt or mvncy laundering, or the effect of any o:t• the
fvrcgoir)g 1~17afs, regulations, oxdcrs nr prvgl'an7s; if applicable, on the 13•ansactial7s described in
this Agrccnlel7t. Se11er is not an entity .nalnecl ott t11e List of Specially ~)esignatcd Nationals alld
f3lacl:ecl ]'erso)7s 177aint,~tned by the U.S. Dcparbnel]t of Tt•easury, as last updated prior to fihe date
of this- A~;reen1e17t.
30,2 Buyer shall take any actial]s that may be required to
colnlaly rvith the terms of the USA Patriot Act of 2001, as an]ended, any regulations pron]ulgated
under the_ fo.regvit7g la~v,) xecutivc Order No. t 32261 on ~C'urt'vrist Financing, any sanctions
progra171 acltninistrated by the T.J.S.. Depal't]]7ent of'I're.astu•y's Office of lioreign Asset Control or
I'inGtnGial Cl~il]7es Enforce-111G.11t Netrr~ork, or an'y ot.h.Gt' la~,vs, regulations, exec'uttve orders yr
goVerllTT)CJ]t prQ~ral115 Ci.eSlgl70d t() Gonlbat t(irrol'lsn7 C)r 117011eV laUttdel'ill~, al' the effect of any of
1170 f()1'8gQ117g lams, 1'tgtll`c1t10115, 01'Clirl'S Ot' prOgl'an]S, 1(' apI)llcable, oll the tranSaCt1017S desCl'lbed
in this Agreernt~nt. Buyer is not an entity named. 017 the; List of Specially Designated .Na.ti.orn]ls
ilnd I3lvclced Pel•sons lxtailltainecl lay tl]e [J.S..lllepartment ofTreasucy, as last updat.cd pl•ior to t17e
date of this Agre(:mcnt.
3l . Backup ()Cfi?r. Until the 'Closing, 5cller may consider back-up viers for a
p()1'tipn or all of the Property,
32. Lin]itation. vl~Liabili~t r, Rl:tyer aekt)o~vleclges alld agrees that lxeither the:
sl7ttrel7olclers, o1'licers, elnl7loyee;s nor affiliates of Scllel' shall be liable for abligatiolls entered
into by or vn behalf of,Sel.ier. Seller shall 77vt be Liable'I'vr any indirect,i.ncidentat, speculative,
_21_
19733636.3
pttxlitive, special, or consenucntial. cian-tages of qtly kind including, but not limited tp, loss of
revenue, loss of gaoci~~viIl, IaSS of business oppol•tutaity, lass of pl•af'its, losses related to thkrd
1)arty claims ox any one or tatare of them .arising iti any manner Pram this Agreement ar the
pel•farrltance or not~pei~farm.ance of.•obligatla.ns related thej•et.o regardless of. rho foresceability
ther'eof'. Not~vithstandzng anything to the contrar}r set forth in Paragraph 13,2 above, if•prior to
the Clasiarg Date .T3trver beca-nes ativare of :any existing or new item, fact or ci.reumstar~ce which
renders a rel)resentation or wart'anty of Selk.er set faz-tll herein incat7'ect or untt•ue in att.y material
1•es])ect (collectively, the "Rcpresent.ation Matter") or that has a. material, adverse impact an the
value of the Peoperty, then proviclecl such .representation ar ~,varrattty was true ~vhc;n ratade by
Seller' Buyer's sole remedy shall be the right to terminate this Agreement a.nd obtain a refiulcl of
the Deposit by providing ~~~rrk[ten ru)LiCe thereat to Sclltr no later than severs (7) businr:.ss days
after Buyer .leat•ns of such Representation Matter. if Bayer does nat timely terminate this
Agreement, thel~ Seller's representatian.s and war7•anties shall be automatically limileci to account
for the Representation Matter, Buyer shall'he deetrted to have ~~~aived Buyer's right to pursue ally
remedy for breach of tb.e representation or ~a~arr•a17ty made llnl7'LtC ail aCCal.glt Ot SUell
Representation lvlatter, attd the parties stroll l>roceecl to the Close of Lscro~~,~, Notwithstanding
anything to the contt•arv contained in this 1>`grcetnent, F3uyer.ltereby agrees t.llat 5e[ler•°s
lt~aximnm. liability under this Agreement for acl.ual, direct damages shall not excc:ecl ~SO,n00 in
tl,~e tlggregate and thtlt any Action ar claittt asserted 1~y Buyer against Seller nets( be ftlac] (if at
all) ~~~ithin t1~~elve (12} months following the Closing, seed Bu}rer hereby ~~~rtives any right to bring
any such cl~iirrt or action thereafter, The provisions of this Paragraph 32 shall sut-~~ive the
Closing and shall not merge with the Grant Deed,
;9733Gzb.3
-~Z-
IN WITNI?,SS W1IL;I2LUI~, the parties hereto have executed this Agreenae~3t as o.f
the date first above written.
~P~~()V~~ ~5 ~'~? I~CI~iP~
Mc~UI~'EU11p~~S LL1~
.,~,.,,
~1P1'IZUVEll AS `['C) FORM;
13~;
Qrry P. I~orl~, I~sn., Town /a.tCo~~ney
Sl?aI.,.I,,I,.IZ:
V.LItIGUN CALIi'OR-'~l~A INC.,
a C(~lifori~ia corporation
f
~-1 ~l . .• '~ ~ Y
Title; ~larist~plx~r=T~e71~
~',;~e~~ttive Llit°ee~o~~_ V~®Real estate
}3UYER;
TO~jN Ur LOS UnTUS, a anu»icil~al
corpo3'ation
I3y~:
Title;
Tay;
Title:
ATTES 1'
Clerk tlclininis~trator
23
1~)'7:i363G.3
Receipt of the foregoing instructions Uy Escra~~~ Holder is aclcno~vledged, said
escro~~T holding is accepted and ~scro~u IIalde~• agrees to iloi.d and dispose of the funds atad
clac~.uaients deposited in the escrow in aceorda.nce with these instructions.
Dated: , 2U
Ficlclity National "I'itlc
Ily;
1=,illda Kat1e, .Esc]'04r~ (7fficer
'7_~
t97,;3G3G.3
AG~~ ~'}VT~;N'I' 0~~ PCIRCT-SASE Al`Jl~ SALT.
ANU rSC'12C~W YIVSTr2UCT~ONS
LIST 01' LXHZ131~}'S
11~hibit 1.1 I..egal Description of 1'rap~rty
Ex1lib.it 2."1 J;scraw Holder's Standard l'ravisions
]~xhil7it 2.3 Grant Deed
_~5_
X9733636.3
AC~RFEMEINT O.~ PURC~IASL A1VD BALL
AND E>~SCROW IiiTSTRUC'TIONS
r~>:rz~~zT ~t r . r ~°
LEGAL 17~SCRZPT~ON Or TIII; PROPERT4'
[to be attacliecl]
~:xlilbit 'l ,'l - 7
ll73363G.3
i_E~AI~ Dl:~srRZPrzor~
THE IAND REFERREDTO HEREIN BELOW Is SITUATED IN THE UNINCORPURATI_DAREA, COUMY OF SANTA
CLARA, STATE OF CALIFORNIA, AND I5 pESCRISED AS FOLLOWS:
PARCEL ONE:
Parcef 1, as shown orI that certain map entitled, ?FARCE=L 1~1AP MINOR LAND pNISION LANDS QF VERIZOP!
CALIFORNIA INC, WHO ACQUIRED TrfL>; AS WESTERN CALIFORNIA TELCPHONC COMPANY, A
CORPORATION, 7260-oR-714, TOWN OF Los GAT05, COUNTY OF SANTA CLARA, STATE OF CALIFORNIA?,
which map was filed in thr? office of the Recorder of the County of Santa Clara, State of California on May 10,
2007 in hook 813 of Maps at Pages S1 and 52,
PARCCL TWO:
An easement for Ingress and Egress, installi»g, repairing, accessing, operating and maintaining drainage,
server, water, gas, power and/ar other utility conduits, IineS ar infrastructurr?, inclusive of talecarrniiunication
lines, over and across that certain portion of Parcel 1 as shown an that certain map entitled, ?PARCEL MAP
MINOR LAND DIVISION (ANDS OF VERI~ON CALIFORNIA INC. WHO ACQUIRED TTI~I.E AS WESTERN
CALIFORNIA TELEPHONC COMPANY, A CORPORATION, 7260-OR-7i~#, TOWN OF I.OS GATOS, COUNTY OF
SANTA GI ARA, STATE OF CALIFORNIA?, which map was filed in the office of the Recorder of the County of
Santa Clara, State of California on May 10, 2007 in Book 813 of Maps at PacUes 51 and 52, and designated on
said rnap as "INGRESS/EGRESS, UTILITY RND DRAINAGE EASEMENT TO BENEFIT I>ARCEL 1", and as further
defined in that certain Declaration of Easement recorded May 10, 2007 as Instrument No. 1942G09G, Official
Records.
Said easement is to be appurtenant to, and for the berleflt nf, Parcel 1 as said Parcel is shown ort said Parcel
Map•
PARCEL T't-IREE:
An easement for Ingress and Egress, installing, repairing, accessing, operating and malr7tcnining drainage,
sewer, water conduits and other utility and irrigation purposes over and across tftat certain portion of Parcel 2
as shown or7 that certain map entitled, ?PARCCL MAP MINOR LAND DNISION LANDS OF VERIZON
CALIFORNIA INC. Wl-i0 ACQUIRED T'il°l.F AS WESTERN CALIFORNIA TELEPHONE COMPANY, A
CORPORATION, 7260~Ott-71A, 1~OWN Oh LC75 GATOS, COUNTY OF SANTA CLARA, STATE OF CALIFORNIA?,
which n'rap was filed in the office of the Recorder of the County of Santa Clara, State of California on May i(l,
2007 in sook 813 of Maps at Pages 51 and 52, and designated In said map as "10' - WIpE WATER EASEMENT
~f'O BENEFIT PARCCL i", and as furfiiter defined in that certain Declaration of Easement recorded May 10, 2007
as Instrument No. 1992609G, Official Records.
Said easement is to be appurtenant to, and for the benefit of, parcel 1 as said Parcel is shown nn said Parcel
Map.
APN: 429-3i-OG4
AGRrrIYIENT 01~ ~'URCHA~J; ANll ~AL~
E1.N;i? ESCROW INSTRUCTIONS
L.XI=IIBIT "2,1"
rSCR04V .1-1()L,I~LR'S S"I'ANDARI) PROVISIONS
T'O; I'IDTI-,ZTY IOTATTCDI`dAI, TI'T)L,~
1. Til17e is 6.1.'the Esset7ce of~these instructions. ICthis escro4v is nrat in a
condition to close by t17e CT.,OSI.NG DATI as provided fot• in the forEgoing Purcl7asE AgrEen7eni.
and 4vritlcu. denland for cancellation is rccei.vEd by you Dram any principal to Ibis esero~i' a€'ler
said date, you shall act. iu accordance with Paragraph 7 of t-11~se Genet•al 17rovisions. If no
conl]ictiug instructiatl of denlar~cl for cancellation is 171ade, you will proceed to close Chic escrow
when the principals have complied r~'ith the csetow instructions. In tl1E event one o.r more of the
C1etZeral Provisions arc held to be invalid, ih.ose remaining rvi11 continue to be operative. Any
amenclmerlts of or supplements to any instructiai7s affecting escrow must be in writing, You arc
alrtl)al'1GEd, prior t.o tlte; etosr; of esctorn>, to pay fi•orn fitnds on deposit any Fees necessary to
obtain any demand and/or report as may be re;gtaired in this cscrol~l and at the el.osE of. esero~v
charge the patties as ap}n•apria.te. `t'he principals will hand yon any funds and instrurneilts
rrc}uired fi'ol:n eaell respacti.vely to com}7lete this escrow, Interc;st on any ne~~• tlnancing n7ay
begin to accrue an the date loan funds/praceecls are clisbtu•secl by the nets lEnclcr, and barrowEr
agrees to pay san7e in accordance; ~~vith leruler'S instructions,
2. You aI•e instruote:d to deliver and/or'1'EC0I'd all d0ClIt17CI1t$ and d1Sb111'S4'• all
~L1I1C1S 1'lrhen you Can Comply V,']tll t11CSE 1n5t1'LiCt1011S and ISSUE arty tltle inSL11'a17Ce }7allcy aS Called
for herein. ']'hest insttuctions, together with a17y an7enclrnants and/or sup}71elrlents, n7a}' be
executed in coul7terpart.s and togctlier shall constitute one and the same docun7ent, If these
instt•L.lctions relate. to a sale, anal if there is no other vvritten agrecn7.cnt bctwcen the }7arties
laertaining therEto, buyer agrees to buy anti seller agI•ees to sell upon the teams and conditions
hGreaf. X111 dac1.u77.e1.zCs, l~tr}artces al7d staten7ents due the undersigned arE to bE mailed to the-
respc;c;tive adclresses Shawn ,17eI•ein, unless otherwise dil•e;cted, 1n the event that a17y party to this
escro~~' utilizes Paasil:nile tr~u7sinitted signed docutx7ents, al} patties hereby agrEC to acct:pt and
]let"(''-17v InSn"Llet the ESCi'Obti' hOldel' to rEly t1paT1 SL1C11 d0CLtI11Ent.S as if th4y bale O]"l~lnal Sl~,l'IalLll'e$,
13U)'c:]- and sellel' fltrtl7et' aC1C31o1VICd~e that ally CI0CUn7Cl1tS to be 1'GCa]'C1Ed 1)Eal'ing n077 al'l~,lnal
(facsi:mile) signatures ~~rill not be acecptecl for recording by the caunty recorder.
3. The phrase "close of escro~~sr" (or COL) as used in this escrow means the
elate on 4vhieh doctunenis are >•ecorded, unless atl7erwise specified.
4. tlssume a :i0 driy 171onth in any proration llErein provided, and unless
otl7ci-v~'ise instlalctcd, you arc to use the inl~orn7aCion co.ntainecl .in aloe latest available; tax
statL.i7lent, includilig any supplenlcntal taxes of record, tE17ta1 statemEl7t as p.raviclcd by seller and
benc:Gciary's o1• association-statel7lerit:s deliveccd 'into escrc:lw for proration purposes.
)iXhll)lt 1,1 }
s9 r33G3G.3
.5. Upc7n c)ose of escrow you are instl•llcted to charge our r:rspective accounts
the costs attrihutab)c to each, including buf. not lin7ited to costs as provided for herein .and/ar in
acCardztnce with our respective estin~atecl statetnel]ts attached hereta and n7ad.e a part hereof.
G. I~ecol•cla.t)on of any instruments delivered t)7xoug17 this escrow, if necessary
ar proper far the issllanee of the policy of title insurance called fat•, is authorized, No
examination or insurance as to the amount or payment of personal propet~ty tares is recluirecl
unless speclicall}' reclltestecl,
7. If del7aalld to cancel is subnlrtted after the Closing, Date, aaly principal so
requesting you t0 CanCQI t17iS eSGI'aw Sha)1 file 17Ut)Ce Ol' d8111and to cancel in your office in
utiriting. You sha.l) 4vithil~ tl7.ree (3) worlcia7g days therealler mail by certifrcd mail one copy of
such notice to each of the other principals at. the address stated in this escrow, Unless written
oa,jectioi7 thereto is Filed in your office by a larix7cip~11 witltit7 fifteen (l S) Galen.cllu days aver the
date of such mailing, yoll are instructe<t to cancel this escrow. if this is a sale escrow, you may
retul7] the lender's papers and/t5r funds upon lender's danlalld,
S• Iu the event that this escrow is oanceled, ally fees or charges due Fidelity
National Title: including. t;•~tuc;ellation fees tu7d any expenditures incur..red or autho7•ized shall be
paid fi•oln funds an deposit. unless othertivise specifica)l.y a~7reed to or determined by a c:aurt of
conlpe;telrt jln'isdictian. Upoa.~ paynlealt therett:, retln-11 d.ocunlents alld n]onles to the parties as set
FUl'E1] ia7 ll7e Iaa'e~Olalg PUCC17aSe /~~]'eelllel1t, Ur aS-O1'del'Cd 17)' tl]e COUL't, alld Maid ally ext%C11teCl
11]Stl'lin]C11t5.
9, if there is no written activity b}= a principal to this escrow within any six-
rrlonth period after the Closing Date scat forth in the Purchase tlgrecment, li)dclity National `l~itlc
171ay, at its option, terminate its agency obligation and cancel this esero«', returning all
dacllnler]ts, 111a11]CS Ur other Ite111S Ilcld, to Che respective parties entitled thereto, less any foes and
charges as larovided herein.
U. if far any reason, fittlds are retained or remain in escrow after the closing
date, }rou nlay deduct thereli~canl a r.4asollable claar~;e as custodian, of not less than ~2S.UU per
n]onth, unless otherwise sl)ecii'ied.
11. In the event that you sholtld. receive written conilicf)ng dc;rrlands or claims
with respect to dais esc;ro~v, Or bvtt)7 1'CSpeCt t0 t)1e 1'igl1t5 of a11y al' the laarties hereta, or with
respect to any n7oney or property de;positecl herein, you sk7a)l have the absol7.lte right at your
opt.iou to cliscantillue any ol• all 1'i:lrther acts until suet] conflict is resalvecl to your satisfaction,
)nel.llding by means of filinb ail action in ia]terpleader if agrcetnetat is not reached within a
reasonable time.
L2, l:n the event that any (~ffel• to Purchase, Deposit Receipt, or ;u1y other iorn7
of Purchase tlgreenlent (collective)y, ll7e "i'urc.hasc Agreement") is deposited in this escl•orv, i.('
t.l]ere is a conflict behvec:n the terans of'thesc Ciencral 1'rovisi.ons and the. Purchase Agrcament;
the terms of the Purchase A.greelrlent shall control,
~9733Ga6,3
~xh)bit 2.1 - 2
13. The parties hereto, by execut.iou oC thc;se illstr47ctions ae.kna~i~ledgc that
the cscrar~' holder assumes nc71•ospansil7ilit)' or liability whatsoever for t11e supervision oC any act
or the perforlnanee at any condition which t5 a C()lldltl()11 Sui7seClllC%llt t0 the C1oS11'rg of t11iS
eSern 4V.
] ~l. 117 the absence of lnslructions to the contrary, }%au are 1lcreb}' authorized to
utilizE wire services, ovel~light taut .day, or other expedited delivery services (as opposed to the
regular U•S, M.ait) and fo charge the respective party's account acca7'dingly.
15. Concerning any real property involved i11 this transaction you are released
from anti shall have; no liability, obligation n1• responsibility with respect to (~}) witliholding of
firncls pursuant to Section i 415 of the Tn#crnai ReverntE Code of 191TG as alxrended, watt to
Sections 1 ~6~2 and 18668 of the California Revenue watt Taxation Cade, (b) advising the patties
as to the reclt}irenlen#s of said Section 1415, (c) deterr7liniug whethel• the tr'ansferat' is tr f:areign
person ore 1lonresident under such Section, nor {;d) obtaining a notl foreign affiidavit or c}ther
exemptiorl front witl111o1di11g under said Sections nor otherwise making any itlclui7y ccanccrnii7g
compliance with such Sections by any }warty to the transaction,
1 C• 1f you pay a dctnan.d to pay in full a rcvalving line a1' ci•eclit or ec]liityline
loan, you arc hereby instructed an nay behalf a17d far my bene:tit, to requesC that the 1e11der
issuing said demand cancel said revs}lying line or equityline of credit,
7 7• You are authorized to i'ua`r}ish to any affiliate elf T'idelifi}~ Na.tianaJ ".ritlo,
~u7v attorney, broker or lender identified with. this transa.ctioil or any one acting all behalf' of'such
lender any irtfornlatiarr, instruc#ions, alnendn7ents, statements, ar notices of canGeha.tior} given in
eannceiio.n ~~'itla [his escro~'~', Tf' any G11EG1C SUb1771'tted t0 eSC.l'pW iS di5}10nat'(:d. When presented 1'ar
pa1'177~a7t, you are authorized to notify all ilritlcipals ~rnd/or their respective agents ol'such talon
pa.y n7 enl.
18. All n.atice.s, chanT;e of instt•uctinns, C0111mlln1eat1o11S and daClimelllS are t0
be deiiverEd in w1•iting to the office of T'idefit}' National Title, as set. fbrth herein,
19. Ail :['ands received in this esr.row shall be cle]aosited with other, escra~v
funds in one or lnor(; ~1arl~interest bcaritlg dcrnarld accounts of r'idclity Natiorlal Title in any state
ot• federal brlnlc or slay state or fecle;ral savings told lean association {"the depository institG}tions")
and may be transter'rcd to any other such accounts,
'1~[1e }7ar'ties to this escrow ac:[cnawleclge that tivh.i.le these accounts do not bear interest,
because of these and ether t7anki1lg 1•elrltionsllips tivith the depositary institutions, l~~idelit~'
tila.ti.ox7aT T.if1E and its affiliates 171ay receive Pi•on7 sc7n7c of the depository instittttiotls an
array a:l'banlcing SBI"VLC[:S, 1GC01711170d£Ltla11S a1• other benefits, p'idetity National Title and
its afffiliates also may elect. to enter into other business transactions ~vit17 or obtain loans
far investment or other purlaclses 1i•om some of the depositor}' institutions, All of such
services, accaln.modations watt other benefits slla!] rtccruc, dh•eetly ar inciirecily, to
I'iclelity's`lational'~'itle watt its afl'tliates and Choy shall have na obligation to account to the
parties to this escraay fnr flee value a.f' sr~ch services, i1GCa117777C)d~ltral7$ Or' Ot11C'!' bC1lGfitS.
Fxhib}t 2.1 - 3
`•973'3636.3
A11 disbrzr~sernents shall lze rzzadC by .Fide.lity National Titlc; check, uazless otherwise
instructed.
Iiidelity National Title shall not be responsible for any clclay in closing if' funds received
by escrow are not available far i.~nzrrediate withdrawal. Fidelity National Title may, pit its
option, require concurr•crit ia3stt"11Ct1oI1S tl'oill Yl}1 pl~incipals prior to release of any Rands on
deposit in this escr•o~~~.
20. You are atztliorizecl to destroy or otherwise dispose of arty and alt
clocr.uneazts; papers, .instrtactions, correspondence and other n'ratc;ria} per#aialing to this c;scrotial at
the expiration of six (6) years from the close o:f escror~v or cancel}anon thereof, without liability
Lurcl wvit.l1out fiu•ther n.otice~,
IMPORTANT NO"I'TCE
Lxcapt for ~~~irc tritnsfers, fluids remitted to this escro«~ arc: subject to availaUil}ty
requirer~aerits unposed by Section ] 2~I13, T of tine California Tnsuranc;e Code.
CASI~III:,IZ'S, CIR1'IF11;D or TELLER'S clzeel<s, payable to I'TTaLLITY NATTONAT.
TITLI Lyre generally available for disbursement on the next business day follo~virzg the
date of deposit.
(7ther forms of paymeizt an.ay cause exteazded delays in the closinl; of your transaction
pursuant to the requireal~ents imposed by State I.ativ
(Wire transfer information available upoiz :regriest)
ALL PAR'T'IES TO THIS ESCRC)W ACKNCWI;EDGf; THAT PIDE~,ITY NA'T'IONAL `T'ITLE
DOF,S NC)T PROVIDE? T.,T;CiAL ADVICE NOR HAS IT M~1D'L; ANY TNVIISTTCinT1C)N,
IlL;I'RESIsNT'ATIONS OR A.SSURANCI:S ~VI-IATSO1Vl~R RI~GARDING THE LI;;C)AT,
AS'PIvC"T'S O}~Z CC7~%II'T..I,~1NGL OT' r1'1-ITS `fRAN:SACTION WITI-I ANY TAX, SIC'CIRI'CIL;S
C)R rINY OTI-TER 5TA`I'E' OR FEDERAL LA~JS, T7' IS RliCOT\~TIt~1ENT~EU THAT T1-]T
PAR'T'IES QB'T'A:fN 1N1.~] ;PENDEN'T' I,LGAL COUNS.I?T.. AS TO SUC;II MATTERS.
Etiltibit 2.1 - ~
~,ei3~~~r>:;
THE FOREGOING ESCR0IV INSTRUCTTO~NS AND GENERAL i'ROVISIONS HAVE
BEEN READ AND ARE IINDLRSTQOD .AND AGP.EED TO BY EAC1-I OP '1"IIE
IJNDEIZSIGNED.
SELLETt;
VERIZON CALIFORNIA INC,,
a Cailtornia corporation
By:
'l~itle;
Cl.lrrellt Addl•ess:
VERI~ON CAI.,IT'ORNIA INC,
c/o Veriron Corporate; Real Ij•state
1SS05 Sand Canyon t-lven~le
Irvine. CA 92C 18
Attention: Toby ~~rallace
VSO Real Estate
BUYER;
TOWN OI~ LOS GATOS, a municipal
CCIr}70l'atlon
13y:~
Title;
By:_
Title:
Gurrenl Address:
TOWN Oli LOS GATOS
l 1 U E. Main. Street
I',O, 13ox 949
Los Gatos, CA 950 1
Attention: Oa•ry I'. I~or~, Esq.,
'1'otivi7 Atiorn~y
Exllibit'L.1 w 5
19733b36,:S
ACXRI!/EML1~`T aT j<'URCHASIIJ AND SALR
Ai~Ill ESCRUW INSTRUCTIONS
CTR.AN"I' DLI~D
R~',CORDING P.~QUL:S"I'LD 13Y AND
1~4~IlEN RDCORDDl7 tI~IAI)_., TO AND MAIL.
TAX BILLS TO;
To~vr~ of I..os Gatos
110 ~;, Main Street
I'.C7. I~ax 949
Los Gatos, CA 95031
Attention- .Iac;lcie Rose
To~~vn Clerlc Adrniz~istratar
Space ~\bave T'or Recorder's lJse
GRA;`~T nFI,D
ri'itle (:)rdr-.r ~ 10. Lscro~v Na.
.~\ PN N a. ------- _.~
The tnxlersigncd grantor declares;
Dacumcntary Transfer 7'a~ is $ _
{ ~ C(~n71J11tP.Cl on full Viiltte Ot [Jl'Opel'ty C011VCyed; Ol'
{) cottiplaled on fu11 value less value of i:iens atld
encurrzUr~tnces .rellirtining at time of sale:.
() Unincorporated area.; () City of _~
>•OR A VALUA}3L>; CQNS~f1»RATIQN, receipt of t-vhieh is hereby ttckaaativiedt;Gd,
VERILON Cf1L1I'ORNIA II~tC., a Crrlifarnia corporation, tormer.Iy 1<noxS'n as GTJ/ California
lncorporat.ed ("Grt•antor„), hereby GRAI~rTS to T0~1N nF LOS GATOS, a municipal
carporatioli ("Crrantee"), the fallavvll~~; desari.bed real praporty in tlae Cattnty of Salltz Clara,
Sirrte of Califol•nia;
P.tsR A'I'T!1CIII;1? L~CGAJ., DCSCRII''1'ION
Exhibit 2,3 - 1
E~r~:,;~:,c~.~
'1`l~is 1"ore~oii~~ grant oi'real property 15 SLII)~CGt• CO 11071-C1C11I14~tilellt ta~~S, all easetr~ents, covet~a~ats,
conditions ~tnd restrictions; and all other mnttcrs of record affecting title fo s~~ch. property.
L~ated;~_ __~•, 200, V~R1ZC)I~7 CAI.,IF(772:N1~ INC„
a Cali Fornia c-orparatioil
By;
Title;
Exhibit 2,3 - 2.
\9713636.;,
~c1~l~~w~>Jnrslvtr,~rT
STAT1a 01~ CALIFORN.IA. )
COUi~~TY Or _ )
On ~, ~, before me, _ ,
personally appeared ,who proved to me on tha basis of
satisfactoay evidence to be tine pez-soi~(s) whose na~z3e(s) is/are szibscribed to the within
instrument at~d aelcnowledged to me that he/sloe/they executed the same ia~ hi.s/her/their
authori2ecl c.apacity(ies), and that by his/l-ter/their si~nattiu'e(s} oiY the instrument the person(s), or
the entity upon behalf of which the person(s) acted, executed the instrument.
7 certify under P};MALTY OF PF,RJIJRY iulder llte laws ol'the ~tatc of Califoa~7ia that
the Ioregoing par~t.~raph. is true and correct,
W7TN:ESS any hand and official seal,
Notary Public
(Seal j
Exhibit 2.3 ~ 3
19733636,3
L~OAL C1i~SCRXP'fIQN
THE LAND REFERRED TO HEREIN BELOW I5 SITUATED IN THE UNINCORPORA fED ARCA, COUNTY OF SAhIi'A
CLAELA, STATE O(= CALIFORNIA, AND IS DESCRIBED AS FOLLOWS;
PARCEL ONC;
Parcel i, as shown on that certain map entitled, ?PARCEL MAP MINOR IAND DNISION LANpS OF VERIZON
CALIFORNIA INC, WI-l0 ACQUIRED T1Tl.C AS WESTERN CALIFORNIA. TELEPHONE COMPAIJY, A
CORPORATION, nro•oR-719, TOWN. 01= LOS GATOS, COU(dTY OF SANTA CLARA, STATE OF CALIFORNIA?,
which map was filed in the office bf the Recorder of the Cotjnty of Santa Clara, State of California ort May 10,
2407 in Book B13 of Maps at Pages 51 and 52.
PARCEL TWO;
An easement for Ingress and Ogress, Installing, repairing, accessing, operating and maintaining drainage,
sewer, water, gas, powt~r and/or other utility conduits, lines or infrastructure, inclusive of telecommunication
lines, over and across tftat ccrtaln portion of Parcel 2 as shown on that certain map enL'3tled, ?PARCEL MAP
MINOR LAND DIVISION (..ANDS OF VERIZON CALIFORNIA INC. GVHQ ACQUIRED TITLE AS WCSfERN
CALIFORNIA TL--LEPl-IONE COMPANY, A CORPORATION, 7264-OR~719, TOWN OF LOS GA'FOS, COUNTY OF
SANTA CLARA, STATE QF CALM=ORNIA?, which map was filed In the office of the Recorder of the County of
Santa Clara, State of California act May I0, 2007 in Book B13 of Maps at Pages 51. and 52, and designated on
said map as "INGRESS/EGRESS, UTIl1lY AND DRAINAGE EASEMENT TO BENEFIT PARCEL I",and as further
defined in that certain l7eclaration of Easement recorded May 10, 20D7 as Instrument No. 19x7.6046, Official
Records.
Said easement Is to be appurtenant to, and for the benefit of, Parcel 1 as said Parcel ds shown on said Parcel
Map.
PARCEL l HREI==.
An easement For Ingress and Egress, Installing, repairing, accessing, operating and malntain9ng drainage,
sewer, water conduits and other utility and irrlgaticm purposes overand across that certain portirn~ of Parcel 2
as shown an that certain map entitled, ?PARCEL MAP MINOR LAND DNISIOfV {ANDS OF VERI7_UN
CALIFORNIA INC, WHO ACQUIRED TITLE A5 WE51'ERN CALIFORNIA "1"CLEPHONE COMPANY, A
CORPORATION, 7264°OR-714, TOWfV OF LOS GATOS, COUNTY OF SAN'T'A CLARA, 5rATE Oi~ CALIFORNIA?,
which-map was filed in the office of the Recorder of the County of Santa Clara, State of California on May 14,
2407 in Book 1313 of Maps at Pages Sl and S2, and designated in said Wrap as "10' -WIDE WATER EASEMENT
TO BiNEFTTAARCEL 1", and as further defined in that certain Declaration of Easement recorded May 1.0, 2447
as Instrument No. i942609G, Official Records.
Said easement is to be appurtenant to, and for the benefit af, Parcel 1 as said Parcel is shown on said Parcel
.Map,
APN: x}24-3I-069