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HomeMy WebLinkAboutAGMT - Dolk, Karl W. - CHP 80 (Purchase & Sale and Escrow Instructions) r-' 17 l g o--vdE59A.V , \\‘;'.0 mss. I 1 Mark Gorton (99312) a> -- :' �a . Mary E. Olden (109373) ,' f 2 Todd M. Bailey (109519) % IOW::: McDONOUGH, HOLLAND &ALLEN to 0/14'1- 3 A Professional Cornoration , aToFC, 1 132:e- 555 Capitol Mall, N.inth Floor �.-'; 4 Sacramento,California 95814 - is�° �„.tJ Telephone: 916 144 3900 5 Facsimile: 916 'M4 8334 , Q Z0. 6 Attorneys for Post-Confirmation Trustee �` Karl W. Dolk S�SEc ePZXOeP,c i-ORN1P 7 Fl`- 8 UNITED STATES BANKRUPTCY COURT 9 EASTERN DISTRICT OF CAT.TFORNIA 10 (Sacramento Division) • 11 In re ) Case No. 89-23204-C-11 12 CALIFORNIA HISTORIC ' ) MC. No. MHA-9 PROPERTIES — 80, a California ) 13 limited partnership, ) AMENDED ORDER AUTHORIZING SALE OF SEAL 14 ENTERED ON DOCKET Debtor. ) BEACH PROPERTY AND AUTHORIZING PAYMENT OF 15 ) REAL ESTATE BROKER'S FEES AUG 1 5 2001 ) 16 ) Date: August 8, 2001 Time: 9:36 a.m. 17 CLERK.U.S.BANKRUPT V COURT ) Dept: C, Courtroom 35 EASTERN DISTRICT OF CAUFORNIA ) 18 19 The motion of Postconfirmation Trustee Karl W. Dolk ("Trustee") inter alia to sell 20 ' real property came on for continued hearing on August 8, 2001 on the Court's 9:30 a.m. 21 calendar. Mary E. Olden appeared on behalf of the Trustee. Other appearances were 22 noted on the record. 23 The motion seeks authority to sell that real property commonly known as Old Seal 24 Beach City Hall and more particularly described in Exhibit A attached hereto ("the 25 Subject Property") to the City of Seal Beach ("the City") pursuant to the terms of the 26 Purchase and Sale Agreement ("the Agreement") attached hereto as Exhibit B, free and 27 IIIII IIIIII1111 II1IIII!I1111 IIF I]1G This is m woe/Wat an a s UM tttd Oanaq R 9 - 2 3 2 0 4 - - 1 28 of the original pages)flied co z 'a-� %7 • I :.E m the office of the Clerk.US t ���__`` ..�w ..T eaokntvrc�r Cost IS IN RICHARD O.MEMTZB1, i eT h P 1 S! _ 1:1, Y Jtmiar iCwr1 rx j � : x 9 5 {.!/i j i is ' } y Deng Clot Asa*II'a> :- — — — 1 clear of all liens, claims and encumbrances except as set forth in the Agreement and this 2 Order and to pay a real estate broker's fee. 3 The Court, having considered the motion, the exhibits to the motion, all objections 4 asserted to the motion, all competing offers and bids, other pleadings and documents on 5 file in this chapter 11 case, the arguments of counsel and offers of proof introduced at 6 hearing on the motion, and good cause appearing therefor, 7 HEREBY FINDS AND ORDERS: a 1. .This Court has jurisdiction over this case pursuant to 28 U.S.C. sections 1334 9 and 157(a). The motion is a core proceeding under 28 U.S.C. section 157(b). 10 2. Due and proper notice of the motion and of the hearing thereon has been 11 given to all parties entitled thereto and such notice is hereby approved. 12 3. Karl W. Dolk is the duly appointed, qualified and acting postconfirmation 13 trustee in this case and owns in trust the property of the estate. The Subject Property is 14 property of this estate. 15 4. The relief requested in the motion is granted in its entirety. The Court did 16 not approve any overbid, the terms of the Agreement being in the best interest of the 17 estate and the parties in interest herein. 18 5. The sale is approved free and clear of all existing liens, encumbrances and 19 interests. 20 6. The execution of the Agreement by the Trustee is approved. The Trustee is 21 hereby authorized and directed to execute any and all additional agreements as 22 contemplated by the Agreement, and to execute and deliver such additional conveyances, 23 assignments, agreements, instruments, amendments, schedules and documents as may be 24 necessary to consummate the Agreement and effect the transaction contemplated therein. 25 7. Effective at close of escrow, all the Trustee's and the estate's right, title and 26 interest in and to the Subject Property shall be sold, conveyed, assigned, transferred and 27 delivered to the Buyer free and clear of any and all liens, mortgages, pledges, security 28 interests, restrictions, prior assignments, liabilities, obligations, encumbrances, charges a ALLEN okHa Order Authorizing Sale of Seal Beach Property and Authorizing Payment of Real Estate Broker's Fees 1 and claims of any and every kind, nature and description whatsoever. 2 8. The Buyer is a good faith purchaser under 11 U.S.C. section 363(m) and is 3 entitled to the protection of that section. 4 9. Except as otherwise provided by further order of this Court, this Court shall 5 retain jurisdiction over the proceeds of the sale, and further retain jurisdiction to 6 determine any disputes or controversies arising in connection therewith or relating 7 thereto. This Court shall also retain jurisdiction to resolve any disputes relating to the 8 interpretation'of the terms and conditions of the Agreement and this Order. 9 10. The payment to CB Richard Ellis, Inc. ("CB") of a real estate broker's fee in 10 the amount of$20,000 is hereby approved. 11 11. The Agreement and this Order shall be binding upon and shall inure to the 12 benefit of the parties thereto and their respective successors and assigns, including 13 without limitation, any successor postconfirmation trustee who may be elected or 14 appointed in this case or in any subsequent chapter 7 case. 1$ DATED: 14 ti�o� , 2001 ( ' 16 'cm 17 Honorabl`- Christopher M. Klein,Judge United Sta -s Bankruptcy Court 18 MEO/Order2SellProp 19 20 21 22 23 24 25 26 27 28 ALLEM ro 3 Order Authorizing Sale of Seal Beach Property and Authorizing Payment of Real Estate Broker's Fees • • EXHIBIT A LEGAL DESCRIPTION Being those portions of Lots 1,3,5 and 7, and Block 107 of Bay City Map in the City of Seal Beach, County of Orange, State of California,recorded in Book 3, Page 19 of miscellaneous maps,records of Orange County, more particularly described as follows: Beginning at the southeast corner of said Lot 1; Thence,northeasterly 87 feet along the easterly line of said Lots 1,3,5 and 7, said easterly lot line also being the westerly line of 8th Street, to a point of intersection with the easterly prolongation of the exterior face of the northerly wall of the old City Hall building constructed in 1929; Thence,northwesterly perpendicular to said 8th Street,along the exterior face of said wall and its prolongation,58.3 feet; Thence,northeasterly,parallel to 8th Street, 10.7 feet, . Thence,northwesterly,perpendicular to 8th Street, 59.2 feet, to the westerly line of said Lots 1,3,5 and 7; Thence,southwesterly 97.7 feet along said westerly line to the southwest corner of Lot 1; Thence,southeasterly 117.5 feet along the southerly line of Lot i to the point of beginning. S729610OOI1646207.9 EXHIBIT A ;` PAGE 1 of 1 -- • • CERTIFIED TO BE A TRUE AND CORRECT COPY OF THE RECORDING REQUESTED BY ORIGINAL DOCUMENT RECORDED ON FATCO 2116456 UNDER RECOR ER'S SERIES NO. ol-QU 1 659(0G7/ ESCROW NO. 908526LB WHEN RECORDED MAIL TO: COUNTY RECORDS Mary E. Olden, Esq. FIRST AMERICAN ITLE CO. McDonough Holland& Allen 555 Capitol Mall, Suite 950 BY. -A— Sacramento, CA 95814 Space above this line for Recorder's use . AMENDED ORDER AUTHORIZING SALE OF SEAL BEACH PROPERTY AND AUTHORIZING PAYMENT OF BROKERAGE FEES AGREEMENT OF PURCHASE AND SALE AND ESCROW INSTRUCTIONS This Agreement of Purchase and Sale and Escrow Instructions (the "Agreement") is made as of this day of , 2001, by and between KARL W. DOLK, POST- CONFIRMATION CHAPTER 11 TRUSTEE IN THE BANKRUPTCY OF CALIFORNIA HISTORIC PROPERTIES-80, A CALIFORNIA LIMITED PARTNERSHIP, DBA CHP-80, DEBTOR, UNITED STATES BANKRUPTCY COURT, EASTERN DISTRICT OF CALIFORNIA, CASE NO. 289-03204-A-11 ("Seller"), and the CITY OF SEAL BEACH ("City")and the REDEVELOPMENT AGENCY OF THE CITY OF SEAL BEACH ("Agency") (jointly, "Buyer"). Recitals A. The City owns that certain parcel of real property consisting of approximately 11,025 square feet of land area located at 201 8h Street in the City of Seal Beach, Orange County, California, as more particularly described in Exhibit "A" attached to this Agreement, and the improvements thereon, consisting of a two-story building containing approximately 9,231 square feet of floor area(collectively, the "Property"). B. Seller owns a subsubieasehold interest (the "Leasehold") in the Property, pursuant to that Ground Lease (the "Ground Lease"), dated January 9, 1984, by and between the City as lessor and California Historic Properties-80 as lessee, a Memorandum of which was recorded August 8, 1984, as Instrument No. 84-329431, Official Records of Orange County, California, as amended by an Amendment of Lease, dated May 30, 1984, a Memorandum of which was recorded August 30, 1984, as Instrument No. 84-343186, Official Records of Orange County, California. The City has occupied a portion of the Property since January 2001 under a series of monthly letter agreements between the City and Seller. C. Seller has informed Buyer of Seller's desire to sell the Leasehold, and Buyer desires to purchase the Leasehold. D. In consideration of the agreements set forth in this Agreement, Seller has agreed to sell the Leasehold to Buyer and Buyer has agreed to purchase the Leasehold from Seller under the terms of this Agreement. NOW,THEREFORE,THE PARTIES AGREE AS FOLLOWS: 1. Sale of Leasehold; Purchase Price. 1.1. Sale of Leasehold. Seller shall sell and assign the Leasehold to Buyer and Buyer shall purchase the Leasehold from Seller, at the price and upon the terms and conditions stated in this Agreement. 1.2. Purchase Price. Buyer shall pay to Seller as the purchase price for the Leasehold(the "Purchase Price") the sum of 5740,000.00. The Purchase Price shall be payable S7296\0001\646207.9 -1- EXHIBIT B PAGE 1 of 13 through the Escrow (as defined in Section 2.1 below) upon the "Close of Escrow" (as defined in Section 2.7 below). Buyer shall deposit the Purchase Price into Escrow in cash or other immediately available funds no later than one (1) business day prior to the "Closing Date" (as defined in Section 2.2 below). 2. Escrow: Closing Conditions. • 2.1. Opening of Escrow. No later than five (5) business days following the execution of this Agreement, Buyer and Seller shall open an escrow("Escrow") with First American Title Company("Escrow Holder") and shall deliver a fully executed copy of this Agreement(or executed counterparts of this Agreement) to Escrow Holder. The deposit with Escrow Holder of a fully executed copy of this Agreement (or executed counterparts of this Agreement) shall constitute the opening of Escrow (the "Opening of Escrow") and authorization to Escrow Holder to actin accordance with the terms of this Agreement. 2.2. Closing Date. The Escrow shall close on or before that date which is fifteen(15) days following the expiration of the Feasibility Period(as defined in Section 2.9.B below), unless such date is changed by mutual written agreement. Notwithstanding the foregoing, the "Closing" or"Close of Escrow" (as defined in Section 2.7 below) shall not occur unless all of the conditions to the Close of Escrow set forth in this Agreement have been satisfied or waived. Unless otherwise specifically provided, if any of such conditions have not been satisfied or waived on or before the Closing Date, this Agreement and the Escrow shall terminate and the provisions of Section 2.11 below shall apply. 2.3. Title and Title Insurance. Seller shall assign the Leasehold to Buyer by an assignment of lease, assignment of subleases and quitclaim deed(the "Lease Assignment") in form and substance approved by Buyer prior to the end of the Feasibility Period(as defined in Section 2.9.B). The Agency shall concurrently through escrow assign its interest in the Property to the City. At the Close of Escrow,First American Title Company(the"Title Company"), shall issue through Escrow a CLTA Owner's Policy of Title Insurance(the "Title Policy")with liability in the amount of the Purchase Price, insuring fee title to the Property vested in the City, subject only to the following exceptions(the "Permitted Exceptions"): i. the standard printed exceptions set forth in the Title Policy; ii. nondelinquent general and special taxes and assessments; • iii. the exceptions described as items 1, 2, 4, 5, 6, 7, 8, 9, 12 and 13 in the Title Company's commitment for title insurance no. OR-2116456, dated March 27,2001 (the "Title Report") for the Property; and iv. such other exceptions as may be approved in writing by Buyer. 2.4. Costs A. Escrow Holder's fees with respect to the Escrow shall be shared equally by Seller and Buyer,provided, however,that if either Buyer or Seller defaults under this Agreement, such defaulting party shall pay all of the Escrow Holder's fees. 57296\000 I'646207.9 -2- EXHIBIT B PAGE 2 of 13 • • B. The premium for the Title Policy shall be paid for by Seller. Any endorsements to the Title Policy and the additional cost of an ALTA Owner's Policy of Title Insurance, if so desired by Buyer, shall be paid for by Buyer. C. All expenses and charges incurred in connection with the discharge of delinquent taxes, if any, or liens or encumbrances on the Leasehold (other than those created by or made through Buyer), shall be paid by Seller. D. All installments of bonds, special taxes or assessments which are a lien on the Leasehold prior to the time of Closing shall be prorated by Escrow Holder between Buyer and Seller as of the Close of Escrow. E. • Each party shall be responsible for payment of the fees and expenses • of its counsel relating to this Agreement and the transactions contemplated hereby. F. Any documentary or transfer taxes and recording fees shall be paid by Seller. G. Any other closing costs or charges are to be paid as is customary in Orange County, California. 2.5. Deposit of Documents and Funds by Seller. Seller shall deposit or cause to be deposited with Escrow Holder the following no later than two (2) business days prior to the Closing Date, duly executed and in recordable form where required: A. The Lease Assignment; B. An estoppel statement and attornment agreement(each, an"Estoppel Certificate"), in form and substance approved by Buyer prior to the end of the Feasibility Period (as defined in Section 2.9.B), in favor of Buyer by each subtenant or occupant(other than Buyer) of any portion of the Property; if a subtenant or occupant fails or refuses to execute and deliver an Estoppel Certificate in substantially the form approved by Buyer,Buyer shall have the right (but not the obligation) to terminate this Agreement,but the failure or refusal of the subtenant or occupant shall not constitute a breach of this Agreement by Seller unless the failure or refusal is based on a material misrepresentation by Seller; C. All other documents as may reasonably be required by Escrow Holder or Title Company to close the Escrow in accordance with this Agreement; D. An affidavit, in the form required by Treasury Regulations Section 1.1445-2(b)(2), certifying that Seller is not a"foreign person" as defined in the Internal Revenue Code. 2.6. Deposit of Documents and Funds by Buyer. Buyer shall deposit with Escrow Holder the following no later than one (1)business day prior to the Closing Date, duly executed and acknowledged where required: 57296\0001\646207.9 -3- EXHIBIT B - —_ PAGE 3 of 13 • • 1' A. The Purchase Price, plus such additional funds as are required to pay Buyer's costs and prorations as provided in Section 2.4 above and Section 2.8 below, less any credits Buyer is entitled to hereunder. B. An assignment of the Agency's interest in the Leasehold to the City (the"Agency Lease Assignment"). C. All other funds and documents as may be reasonably required by Escrow Holder or Title Company to close the Escrow in accordance with this Agreement. 2.7. Delivery and Recordation of Documents and Delivery of Funds at Closing. The performance of the acts set forth in this Section 2.7 shall constitute the "Closing" or the"Close of Escrow" as such terms are used in this Agreement. The Escrow Holder shall conduct the Closing by recording and distributing the following described documents and funds in the following manner. A. Record the Lease Assignment and the Agency Lease Assignment in the Office of the County Recorder of Orange County(the "County Recorder") with any documentary transfer tax certified by way of a separate statement; B. Deliver the Estoppel Certificates to Buyer; C. Obtain and deliver the Title Policy to Buyer; D. Deliver to Seller on the Close of Escrow immediately available funds in the amount of the Purchase Price, and such other funds, if any, due Seller by reason of prorations, less Seller's closing costs and prorations, if any, as provided in Section 2.4 above and Section 2.8 below, and any credits Buyer is entitled to hereunder; and E. Pay the costs referred to in Section 2.4, above. Concurrently with the Closing, Seller shall deliver possession of the Property to Buyer, subject to the rights of subtenants under approved subleases. 2.8. Prorations. A. Proration of Real Estate or Possessory Interest Taxes. Seller aclarowledges Buyer's representation that Buyer is exempt from real estate taxation. If a proration of real property or possessory interest taxes (collectively, "Property Taxes") on the Property or the Leasehold would result in a credit to Seller and a charge against Buyer, there shall be no proration of Property Taxes, but Seller shall be entitled to any refund under Revenue and Taxation Code Section 5096.7. Buyer shall execute any requests for cancellation of taxes and take any other actions reasonably required in order to obtain cancellation of the Property Taxes and any refund to Seller. If a proration of Property Taxes would result in a charge against Seller and a credit to Buyer, Property Taxes shall be prorated to the date of the Close of Escrow. Seller shall indemnify and hold Buyer, the Leasehold and the Property from and against any and all Property Taxes attributable to the period prior to the Closing Date. Any prorations of Property Taxes shall be computed by Escrow Holder based on a 365-day year. S7296\0001\646207.9 -4- EXHIBIT B PAGE4of13 • • B. Rents; Utilities: Deposits. Escrow Holder shall prorate through Escrow, on the basis of a 30-day month, rent under the Ground Lease, all nondelinquent rents from sublessees and all water, gas, electric and other utility services on the Property, based on a statement prepared by Seller and approved by Buyer. Security deposits and prepaid rents held by Seller under Subleases shall be charged against Seller and credited to Buyer. C. Tentative Closing Costs. At least three (3) business days prior to the Closing Date, Escrow Holder shall deliver to Seller and to Buyer copies of a tentative schedule setting forth a preliminary determination of Seller's and Buyer's closing costs and all written detail used by the Escrow Holder to make such determination. 2.9. Buyer's Conditions to Closing. Buyer shall not be obligated to proceed to the Close of Escrow and the Closing shall not occur unless and until, in addition to all other conditions contained in this Agreement, the following conditions have been satisfied, or waived in writing by Buyer: A. Intentionally omitted. B. Approval of Physical Condition. On or before the expiration of thirty (30) days following the execution of this Agreement(the "Feasibility Period"), Buyer shall have approved in writing to Seller the physical condition of the Property. Should Buyer disapprove any matters regarding the physical condition of the Property, this Agreement and the Escrow shall terminate in accordance with Section 2.11 herein. C. Intentionally omitted. D. Approval of Estoppel Certificates. Buyer shall have approved all of the Estoppel Certificates prior to the Close of Escrow. E. Issuance of Title Policy. The Title Company shall be prepared to issue the Title Policy as of the Close of Escrow. F. Waiver. The foregoing conditions set forth in this Section 2.9 are for the benefit of Buyer, and may be waived by Buyer in a writing delivered to Seller and Escrow Holder. In satisfying the foregoing conditions, Buyer and Seller shall each exercise good faith, reasonableness, and diligence. 2.10. Approval of Bankruptcy Court. Seller's obligation to sell the Leasehold to Buyer is conditioned upon the approval of this transaction by the United States Bankruptcy Court, Eastern District of California, Case No. 289-03204-A-11. Seller shall seek such approval promptly following execution of this Agreement. Buyer aclmowledges that such approval is subject to potential overbid by third parties. If the approval is not obtained due to an overbid in the Bankruptcy Court, Seller may terminate this Agreement upon payment to Buyer of a termination fee equal to the lesser of: (i) S25,000; and(ii) 50% of the amount by which the approved sale price exceeds $740,000. 2.11. Termination of Agreement. Upon any termination of this Agreement and the Escrow in accordance with the provisions of this Agreement, except as a result of either party's default, (i) each party shall execute such documents as Escrow Holder may reasonably 5729610001\646207.9 -5- EXHIBIT B PAGE 5 of 13 • • require to evidence such termination, (ii) Escrow Holder shall return all documents and funds to the party who deposited them, (iii) Escrow Holder shall charge its fees and expenses to the party obligated to pay them hereunder in accordance with Section 2.4.A above, and (iv) all obligations of either party under this Agreement (other than payment of the termination fee described in Section 2.10) shall terminate. 3. Seller's Representations and Warranties. Seller represents and warrants to Buyer that, unless otherwise provided in this Agreement, at the date of execution hereof and at and as of the Closing Date: 3.1. Corporate Existence and Authority. Seller is a California limited partnership acting by and through the duly appointed and acting post-confirmation Chapter 11 Trustee of California Historic Properties-80, a California limited partnership, DBA CEP-80, Debtor,in United States Bankruptcy Court, Eastern District of California, Case No. 289-03204- A-11,which limited partnership is (i) validly existing and in good standing under the laws of the State of California; and(ii) subject to the approval required in Section 2.10, duly authorized, qualified and licensed under any and all laws, ordinances, rules, regulations and requirements of all applicable governmental authorities to do all things required of it under or in connection with this Agreement. This Agreement and all agreements, instruments and documents herein provided to be executed or to be caused to be executed by Seller are duly executed by and binding upon Seller. 3.2. Documents. All the documents and information delivered by Seller to Buyer in connection with the Property and this Agreement and the exhibits attached thereto are true and correct copies of what they purport to represent. 3.3. Approvals and Consents. Except as described in Section 2.10,no approvals or consents of any person or entity other than Seller shall be required in order for Seller to enter into this Agreement and to do all things required of it under or in connection with this Agreement 3.4. Use of Property: Hazardous Substances. To Seller's knowledge,without investigation: (i)since the commencement date of the Ground Lease, the Property has been used solely for office,recording studio and retail purposes; and(ii) except for immaterial amounts of Hazardous Material commonly used in connection with normal office and retail use, the Property is free from Hazardous Material,'as defined in Section 5. 4. Buyer's Representations and Warranties. Buyer hereby represents and warrants to Seller that at the date of execution hereof and at and as of the Closing Date: 4.1. Existence and Authority. Buyer has the authority to do all things required of Buyer under or in connection with this Agreement. This Agreement and all agreements, instruments and documents herein provided to be executed or to be caused to be executed by Buyer are duly executed by and binding upon Buyer. 4.2. Approvals and Consents. No approvals or consents of any person or entity other than Buyer shall be required in order for Buyer to enter into this Agreement and to do all things required of Buyer under or in connection with this Agreement. S7296\0001\646207.9 -6- EXH113IT B — PAGE 6 of 13 • 4.3. Buyer's Investigation; AS IS. Except for express representations made by Seller in this Agreement, Buyer is relying and shall rely solely upon its own investigation and inspection of the Property and the improvements thereon and upon the aid and advice of Buyer's independent expert(s) in purchasing the Leasehold, and shall take title to the Leasehold without any warranty, express or implied, by Seller or any employee or agent of Seller. BUYER ACKNOWLEDGES AND AGREES TEAT, EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, SELLER HAS NOT MADE ANY REPRESENTATIONS, WARRANTIES, GUARANTIES, PROMISES, STATEMENTS OR ASSURANCES WHATSOEVER, EXPRESS OR IMPLIED, DIRECTLY OR THROUGH ANY EMPLOYEE OR AGENT,AS TO THE CONDITION OF THE PROPERTY, OR ANY OTHER MATTER, INCLUDING, BUT NOT LIMITED TO, HAZARDOUS MATERIALS. BUYER'S PURCHASE OF THE LEASEHOLD IS "AS IS, WHERE IS". 5. Hazardous Material. 5.1. Definition of Hazardous Material. As used herein, the term "Hazardous Material" means any hazardous or toxic substance, material, or waste which is or becomes regulated by any local governmental authority, the State of California or the United States Government. The term "Hazardous Material" includes, without limitation, any material or substance which is (i) defined as "hazardous waste," "extremely hazardous waste," or"restricted hazardous waste" under Sections 24115, 15117 or 25122.7, or listed pursuant to section 25140, of the California Health and Safety Code, Division 20, Chapter 6.5 (Hazardous Waste Control Law), (ii) defined as a"hazardous substance" under Section 25316 of the California Health and Safety Code, Division 20, Chapter 6.8 (Carpenter-Presley-Tatter Hazardous Substance Account Act), (iii) defined as a"hazardous material," "Hazardous substance," or"hazardous waste" under Section 25501 of the California Health and Safety Code, Division 20, Chapter 6.95 (Hazardous Materials Release Response Plans and Inventory), (iv) defined as a "hazardous substance" under Section 25281 of the California Health and Safety Code,Division 20, Chapter 6.7 (Underground Storage of Hazardous Substances), (v) petroleum, (vi) asbestos, (vii) listed under Article 9 or defined as hazardous or extremely hazardous pursuant to Article 11 of Title 22 of the California Administrative Code,Division 4, Chapter 20, (viii) Federal Water Pollution Control Act(33 U.S.C. §1317), (ix) defined as a "hazardous waste" pursuant to Section 1004 of the Federal Resource Conservation and Recovery Act, 42 U.S.C. §6901 et seq. (42 U.S.C. §6903) or(x) defined as a"hazardous substance"pursuant to Section 101 of the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. §9601 et seq. (42 U.S.C. §601). 5.2. Right to Inspect. During the Feasibility Period, Seller and Buyer shall each have the right, at their respective cost and expense, to conduct such physical inspections of the Property as either may reasonably desire, including but not limited to inspections to determine the presence or absence of Hazardous Material on or under the Property. Such inspections by Buyer shall be conducted at reasonable times and under reasonable circumstances and shall be subject to the prior approval of Seller. Each party shall promptly deliver the results of such inspections to the other. 5.3. Clean-up of Hazardous Material. If Buyer determines that an unacceptable level of Hazardous Material exists on or under the Property, Seller may, at Sellers sole discretion, either(1) terminate this Agreement, in which event the provisions of Section 2.11 shall apply, or(2) commence to remove such Hazardous Material from the Property at S7296\0001\646207.9 -7- EXHIBIT B -- PAGE 7of13 — • • Seller's sole cost and expense, in which event the Close of Escrow shall be delayed until following Seller's completion of such removal. Notwithstanding the foregoing to the contrary, if such removal is not completed by Seller within six (6) months following the Opening of Escrow, or if Seller chooses to discontinue such clean-up at any time within such six (6) month period, then this Agreement shall automatically terminate and the provisions of Section 2.11 shall apply. 5.4. Buyer's Inspection. If Seller elects to remove such Hazardous Material pursuant to Section 5.3 above, upon completion of such removal, Seller shall deliver to Buyer and to Escrow Holder notice stating that such removal has been completed. Within thirty(30) days following Buyer's receipt of such notice, Buyer shall inspect the Property in order to determine the presence or absence of Hazardous Material on or under the Property. If such inspection reveals that the level of Hazardous Material remaining on or under the Property is acceptable to Buyer in Buyer's sole discretion, then Buyer shall be obligated to proceed to the Close of Escrow, and the Close of Escrow shall occur within two (2) weeks following Buyer's inspection. 6. Seller's Personal Property. Seller warrants that none of Seller's personal property is located on the Property, and that none of Seller's personal property is necessary for the operation of the Property as it is currently operated. 7. Operation Prior to Closing. From and after the execution of this Agreement, Seller shall not enter into any subleases, contracts or agreements pertaining in any way to the Property or the occupancy thereof that are not terminable on or before the date on which Seller is required to deliver possession of the Property to Buyer. Notwithstanding the foregoing, Seller shall maintain and repair the Property in accordance with the Ground Lease until the Closing. 8. Right of Entry. Buyer and its representatives, employees,contractors, agents and designees shall have the right to enter upon the Property, at Buyer's sole cost and expense,in order to inspect and investigate the Property and to conduct any and all surveys, tests and studies Buyer deems necessary or convenient,provided that Buyer shall restore any damage done to the Property as the result of any such tests, surveys or studies. Such entry shall be made only after reasonable advance written notice to Seller by Buyer and at times reasonably acceptable to Seller. Such right of entry shall be exercised in a manner which reasonably minimizes any disruption to tenants in the Property. Buyer shall indemnify, defend and hold Seller and the Property free and harmless from any and all claims, demands,liabilities,costs, expenses, penalties, damages, losses and liens, including, without limitation,reasonable attorneys'fees, • arising out of any such entry by Buyer or its representatives, employees,agents, contractors or designees. The indemnity provided for herein shall survive the termination of this Agreement. The inspections of the Property conducted by Buyer under the terms of this Agreement shall be subject to the terms of this Section 8 and shall be considered entries upon the Property for the purposes of this Section 8. 9. Limitations of Claims. 9.1. No Threat of Condemnation. Seller acknowledges that Seller has periodically solicited offers from the City for the transaction which is the subject of this Agreement, and did so independently of and without regard to any actions or contemplated actions of Buyer, Seller did not act under any threat of condemnation. Seller acknowledges and agrees that Seller has no right or entitlement to make any claims against Buyer or its officials, 57296\0001'646207.9 -8- EXHIBIT B PAGE S of 13 employees, agents or attorneys for just compensation, severance damages, compensation for loss of goodwill, precondemnation damages, inverse condemnation, attorneys' fees, litigation expenses, costs, interest, relocation benefits, or any other claims whatever, arising out of or relating to pre-acquisition activities of Buyer or its officials, employees, agents or attorneys. Seller's claims to compensation with respect to the Leasehold are limited to the Purchase Price payable under this Agreement. 9.2 No Personal Liability of Trustee or Limited Partners. Buyer acknowledges that Karl W. Dolk is acting in a representative capacity on behalf of California Historic Properties-80, a California limited partnership, and that the remaining constitutent partners of California Historic Properties-80, a California limited partnership, are limited partners. Neither Karl W.Dolk nor any constituent limited partner of California Historic Properties-80 shall have any personal liability for the obligations of Seller under this Agreement. Buyer agrees that it shall look solely to the assets of California Historic Properties-80 for the enforcement of any claims arising hereunder or related hereto. The terms of this subsection 9.2 are a material consideration and inducement to Seller to enter into this Agreement, and but for the inclusion of such provision in this Agreement, Seller would not enter into this Agreement. 10. Commissions. Seller hereby represents and warrants to Buyer that no broker, salesman or finder has been engaged by it in connection with the transaction contemplated by this Agreement, other than CB Richard Ellis, Inc. ("Broker"). Buyer hereby represents and warrants to Seller that Buyer has made no statement or representation or entered into any agreement with a broker, salesman or finder, other than Broker, in connection with the transaction contemplated by this Agreement. The parties acknowledge that Broker represents Seller only in this transaction. Seller shall pay any commission due Broker and shall indemnify, hold harmless and defend Buyer from and against claim by Broker. In the event of any claim for broker's or finder's fees or commissions in connection with the negotiation or execution of this Agreement or the transaction contemplated hereby by any person or entity other than Broker, Seller shall indemnify, hold harmless and defend Buyer from and against such claim if it shall be based upon any statement or representation or agreement alleged to have been made by Seller, and Buyer shall indemnify, hold harmless and defend Seller if such claim shall be based upon any statement, representation or agreement alleged to have been made by Buyer. 11. Attorneys'Fees. If any action or proceeding shall be brought by either party in order to enforce the provisions of this Agreement, or to collect damages as a result of the breach of any of the provisions of this Agreement, the prevailing party shall be entitled to recover all reasonable costs incurred in connection therewith, including attorneys' fees. 12. Notices. Whenever Escrow Holder or any party hereto shall desire, or be obligated, to give or serve upon the other any notice, demand,request or other communication, each such notice,demand,request or other communication shall be in writing, shall be given by personal delivery or by registered or certified United States mail, return receipt requested, postage prepaid, addressed as follows: TO SELLER: Karl W. Dolk, Trustee do Muto-Dolk Associates 931 Howe Avenue. #101 Sacramento, CA 95825 S7296\0001\646207.9 -9- EXHIBIT B PAGE 9 of 13 • - • with a copy to: McDonough, Holland & Allen 555 Capitol Mall, 9th Floor Sacramento, CA 95814 Attn: Jeffry R. Jones, Esq. TO BUYER: City of Seal Beach 2118th Street Seal Beach, California 90740 Attn: City Manager with a copy to: Richards, Watson&Gershon 333 South Hope Street, 38th Floor Los Angeles, CA 90071 Attn: Quinn M. Barrow, City Attorney TO ESCROW HOLDER: First American Title Company #2 First American Way Santa Ana, CA 92707 Attn: Eric Bowen Any such notice, demand, request or other communication shall be deemed effective on the day of actual delivery as shown by the addressee's return receipt or the expiration of three business days after the date of mailing,whichever is earlier. The foregoing addresses maybe changed by notice given in accordance with this Section 12. 13. Amendment; Complete Agreement. All amendments and supplements to this Agreement must be in writing and executed by Buyer and Seller. All understandings and agreements between the parties regarding the Property are merged in this Agreement,which alone fully and completely expresses the agreement of the parties regarding the Property. This Agreement has been drafted through a joint effort of the parties and their counsel and therefore shall not be construed against either of the parties as the draftsperson. This Agreement shall not be binding upon either party hereto until fully executed by both parties. 14. Governing Law. This Agreement shall be governed under the laws of the State of California. 15. Counterparts, Signatures and Headings. This Agreement may be executed in several counterparts each of which shall be deemed an original,but all of such counterparts shall constitute one Agreement. Except for documents to be recorded, signatures of the parties may be delivered by facsimile transmission; such facsimile signatures shall be treated in all respects as having the same effect as an original signature. The headings used herein are for convenience only and are not to be construed to be part of this Agreement. S7296\0001P646207.9 -10- EXHIBIT B PAGE 10 of 13 - I * _ 16. Binding Effect. This Agreement shall be binding upon the heirs, executors, administrators, successors and assigns of Seller and Buyer. 17. Time of the Essence. Time is of the essence of this Agreement. 18. Waiver. The waiver by one party of performance of any covenant, condition or promise shall not invalidate this Agreement, nor shall it be considered to be a waiver by it of any other covenant, condition or promise. The waiver by either or both parties of the time for performing any act shall not constitute a waiver of the time for performing any other act or an identical act required to be performed at a later time. 19. Third Parties. Nothing contained in this Agreement, expressed or implied, is intended to confer upon any person other than the parties hereto and their successors and assigns, an.yrights or remedies under or by reason of this Agreement. 20. Severability. If any one or more of the provisions contained in this-Agreement shall for any reason be held to be invalid, illegal or unenforceable in any respect,such invalidity, illegality or unenforceability shall not affect any other provision hereof and this Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein, unless such invalidity, illegality or unenforceability materially affects the transactions contemplated by this Agreement or the ability of either party to perform its obligations under this Agreement. In such case, either party may terminate this Agreement and the Escrow on written notice to the other party given no later than ten(10) business days after the party giving such notice becomes aware of such invalidity, illegality or unenforceability, and the provisions of Section 2.11 above shall apply. 21. Additional Documents. Each party hereto agrees to perform any further acts and to execute and deliver any further documents which may be reasonably necessary to carry out the provisions of this Agreement. S7296\0001 W46207.9 -11- EXHIBIT B PACE 11 of 13 �u ' 'a _on. 27DM • ilo • 2095 P 13•IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written. KARL W. DOLK POST-CONFIRMATION CHAPTER 11 TRUSTEE IN THE BANKRUPTCY OF CALIFORNIA HISTORIC PROPERTIES-80, A CALIFORNIA LIMITED PARTNERSHIP,DBA CHP-80, DEBTOR UNITED STATES BANKRUPTCY COURT, EASTERN DISTRICT OF CALIFORNIA., CASE NO. 289-03204-A-11 ("Seller") CITY OF SEAL BEACH("City") By. a A T: Clerk THE REDEVELOPMENT AGENCY OF THE CITY OF SEAL BEACH("Agency") Ia / By: Chair ATTEST: S jcretary Receipt of the foregoing instructions by Escrow Holder is acknowledged and accepted, and Escrow Holder agrees to hold and dispose of the funds and documents deposited.in the escrow in accordance with such instructions. Date: , 2001 FIRST AMERICAN TITLE COMPANY By: Its: S7296\0001\646207.9 -12- r. . 9 . Jul _ :37PM tlo . 2996 P 3 410 410 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written. KARL W.DOLK,POST-CONFIRMATION CHAPTER 11 TRUSTEE IN THE BANKRUPTCY OF CALIFORNIA HISTORIC PROPERTIES-80, A CALIFORNIA LIMITED PARTNERSHIP,DBA CHP-80,DEBTOR,UNITED STATES BANKRUPTCY COURT,EASTERN DISTRICT OF CALIFORNIA, CASE NO. 289-03204-A-11 ("Seller") CITY OF SEAL BEACH ("City") By: Mayor ATTEST: City Clerk THE REDEVELOPMENT AGENCY OF THE CITY OF SEAL BEACH("Agency") By Chair ATTEST: Secretary Receipt of the foregoing instructions by Escrow Holder is acknowledged and accepted, and Escrow Holder agrees to hold and dispose of the funds and documents deposited in the escrow in accordance with such instructions. Date: 2001 FIRST AMERICAN TITLE COMPANY By: Its: 57296'0001\646207.9 •12- • IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written. KARL W. DOLK, POST-CONFIRMATION CHAPTER 11 TRUSTEE IN THE BANKRUPTCY OF CALIFORNIA HISTORIC PROPERTIES-S0, A CALIFORNIA LIMITED PARTNERSHIP, DBA CHIP-80,DEBTOR, UNITED STATES BANKRUPTCY COURT,EASTERN DISTRICT OF CALIFORNIA, CASE NO. 289-03204-A-1 l ("Seller") • CITY OF SEAL BEACH("City") BY Mayor ATTEST: City Clerk THE REDEVELOPMENT AGENCY OF THE CITY OF SEAL BEACH("Agency") By: Chair ATTEST: Secretary Receipt of the foregoing instructions by Escrow Holder is acknowledged and accepted, and Escrow Holder agrees to hold and dispose of the funds and documents deposited in the escrow in accordance with such instructions. Date: , 2001 FIRST AMERICAN TITLE COMPANY By: Its: 57296\0001\646207.9 -12- EXHIBIT B PAGE 12 of 13 t EXHIBIT A LEGAL DESCRIPTION Being those portions of Lots 1,3,5 and 7,and Block 107 of Bay City Map in the City of Seal Beach, County of Orange, State of California,recorded in Book 3,Page 19 of miscellaneous maps,records of Orange County,more particularly described as follows: Beginning at the southeast corner of said Lot 1; Thence,northeasterly 87 feet along the easterly line of said Lots 1,3,5 and 7,said easterly lot line also being the westerly line of 8th Street, to a point of intersection with the easterly prolongation of the exterior face of the northerly wall of the old City Hall building constructed in 1929; Thence,northwesterly perpendicular to said 8th Street, along the exterior face of said wall and its prolongation,58.3 feet; Thence,northeasterly,parallel to 8th Street, 10.7 feet; Thence,northwesterly,perpendicular to 8th Street,59.2 feet,to the westerly line of said Lots 1,3,5 and 7; Thence,southwesterly 97.7 feet along said westerly line to the southwest corner of Lot 1; Thence,southeasterly 117.5 feet along the southerly line of Lot 1 to the point of beginning. 3729610001W46207.9 EXHIBIT B -_ PAGE 13 of 13 Orst American Title Compao CERTIFIED TRUE AND CORRECT COPY FIRST AMERICAN TITLE INSURN4CE COMPANY 1610 Arden Way#190 � n Sacramento, CA 95815 BY / 1 l � (916)920-3100 BUYER'S CLOSING STATEMENT FINAL Buyer: CITY OF SEAL BEACH Escrow No: 00908526-004-LB Close Date: 08/27/2001 Proration Date: 08/27/2001 Date Prepared: 08/28/2001 Property Address: 201 8th Street Seal Beach, CA Descriptior 1lebit Gredt TOTAL CONSIDERATION: Total Consideration 740,000.00 Deposit/Earnest Money 741,210.85 PRORATIONS AND ADJUSTMENTS: Rent - City lease From 08/01/2001 To 08/27/2001 6,066.67 Based on Monthly amount of$7,000.00 Rent- Tenant leases From 08/27/2001 To 09/01/2001 878.02 Based on Monthly amount of$6,585.16 Credit Buyer Sec. Deposits 4,863.05 Rent - Ground Lease From 08/27/2001 To 09/01/2001 290.25 Based on Monthly amount of$2,176.88 ESCROW CHARGES 1/2 each Escrow Fee to First American Title Company 595.00 Sub Totals 746,951.92 746,951.92 Totals 746,951.92 746,951.92 • Page 1 of 1 • AGREEMENT OF PURCHASE AND SALE AND ESCROW INSTRUCTIONS This Agreement of Purchase and Sale and Escrow Instructions (the "Agreement") is made as of this - day of , 2001, by and between KARL W. DOLK, POST- CONFIRMATION CHAPTER 11 TRUSTEE IN THE BANKRUPTCY OF CALIFORNIA HISTORIC PROPERTIES-80, A CALIFORNIA LIMITED PARTNERSHIP, DBA CHP-80, DEBTOR, UNITED STATES BANKRUPTCY COURT, EASTERN DISTRICT OF CALIFORNIA, CASE NO. 289-03204-A-11 ("Seller"), and the CITY OF SEAL BEACH ("City")and the REDEVELOPMENT AGENCY OF THE CITY OF SEAL BEACH ("Agency') (jointly, "Buyer"). Recitals A. The City owns that certain parcel of real property consisting of approximately 11,025 square feet of land area located at 201 8th Street in the City of Seal Beach, Orange County, California, as more particularly described in Exhibit "A" attached to this Agreement, and the improvements thereon, consisting of a two-story building containing approximately 9,231 square feet of floor area(collectively, the "Property"). B. Seller owns a subsubleasehold interest(the "Leasehold") in the Property,pursuant to that Ground Lease (the "Ground Lease"), dated January 9, 1984,by and between the City as lessor and California Historic Properties-80 as lessee, a Memorandum of which was recorded August 8, 1984, as Instrument No. 84-329431, Official Records of Orange County, California, as amended by an Amendment of Lease, dated May 30, 1984, a Memorandum of which was recorded August 30, 1984, as Instrument No.,84-343186, Official Records of Orange County, Califomia.CThe City has occupied a portion of the Property since January 2001 under a series of monthly letter agreements between the City and Selle C. Seller has informed Buyer of Seller's desire to sell the Leasehold, and Buyer desires to purchase the Leasehold. D. In consideration of the agreements set forth in this Agreement, Seller has agreed to sell the Leasehold to Buyer and Buyer has agreed to purchase the Leasehold from Seller under the terms of this Agreement. NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS: 1. Sale of Leasehold; Purchase Price. 1.1. Sale of Leasehold. Seller shall sell and assign the Leasehold to Buyer and Buyer shall purchase the Leasehold from Seller, at the price and upon the terms and conditions stated in this Agreement. 1.2. Purchase Price. Buyer shall pay to Seller as the purchase price for the Leasehold (the "Purchase Price") the sum of$740,000.00. The Purchase Price shall be payable 57296\0001\646207.9 -1- • • through the Escrow (as defined in Section 2.1 below) upon the "Close of Escrow" (as defined in Section 2.7 below). Buyer shall deposit the Purchase Price into Escrow in cash or other immediately available funds no later than one (1)business day prior to the "Closing Date" (as defined in Section 2.2 below). 2. Escrow: Closing Conditions. 2.1. Opening of Escrow. No later than five (5) business days following the execution of this Agreement, Buyer and Seller shall open an escrow ("Escrow") with First American Title Company("Escrow Holder") and shall deliver a folly executed copy of this Agreement (or executed counterparts of this Agreement) to Escrow Holder. The deposit with Escrow Holder of a fully executed copy of this Agreement (or executed counterparts of this Agreement) shall constitute the opening of Escrow(the "Opening of Escrow") and authorization to Escrow Holder to act in accordance with the terms of this Agreement. 2.2. Closing Date. The Escrow shall close on or before that date which is fifteen(15) days following the expiration of the Feasibility Period (as defined in Section 2.9.B below), unless such date is changed by mutual written agreement. Notwithstanding the • foregoing, the "Closing" or"Close of Escrow" (as defined in Section 2.7 below) shall not occur unless all of the conditions to the Close of Escrow set forth in this Agreement have been satisfied or waived. Unless otherwise specifically provided, if any of such conditions have not been satisfied or waived on or before the Closing Date, this Agreement and the Escrow shall terminate and the provisions of Section 2.11 below shall apply. 2.3. Title and Title Insurance. Seller shall assign the Leasehold to Buyer by an assignment of lease, assignment of subleases and quitclaim deed(the "Lease Assignment") in form and substance approved by Buyer prior to the end of the Feasibility Period (as defined in Section 2.9.B). The Agency shall concurrently through escrow assign its interest in the Property to the City. At the Close of Escrow, First American Title Company(the "Title Company"), shall issue through Escrow a CLTA Owner's Policy of Title Insurance (the "Title Policy") with liability in the amount of the Purchase Price, insuring fee title to the Property vested in the City, subject only to the following exceptions (the "Permitted Exceptions"): i. the standard printed exceptions set forth in the Title Policy; ii. nondelinquent general and special taxes and assessments; iii. the exceptions described as items 1, 2, 4, 5, 6, 7, 8, 9, 12 and 13 in the Title Company's commitment for title insurance no. OR-2116456, dated March 27, 2001 (the "Title Report") for the Property; and iv. such other exceptions as may be approved in writing by Buyer. 2.4. Costs A. Escrow Holder's fees with respect to the Escrow shall be shared equally by Seller and Buyer; provided, however, that if either Buyer or Seller defaults under this Agreement, such defaulting party shall pay all of the Escrow Holder's fees. 37296\0001\646207.9 -2- • • • B. The premium for the Title Policy shall be paid for by Seller. Any endorsements to the Title Policy and the additional cost of an ALTA Owner's Policy of Title Insurance, if so desired by Buyer, shall be paid for by Buyer. C. All expenses and charges incurred in connection with the discharge of delinquent taxes, if any, or liens or encumbrances on the Leasehold (other than those created by or made through Buyer), shall be paid by Seller. D. All installments of bonds, special taxes or assessments which are a lien . on the Leasehold prior to the time of Closing shall be prorated by Escrow Holder between Buyer and Seller as of the Close of Escrow. E. Each party shall be responsible for payment of the fees and expenses of its counsel relating to this Agreement and the transactions contemplated hereby. F. Any documentary or transfer taxes and recording fees shall be paid by Seller. G. Any other closing costs or charges are to be paid as is customary in Orange County, California. 2.5. Deposit of Documents and Funds by Seller. Seller shall deposit or cause to be deposited with Escrow Holder the following no later than two (2)business days prior to the Closing Date, duly executed and in recordable form where required: A. The Lease Assignment;. B. An estoppel statement and attomment agreement(each, an"Estoppel Certificate"), in form and substance approved by Buyer prior to the end of the Feasibility Period (as defined in Section 2.9.B), in favor of Buyer by each subtenant or occupant (other than Buyer) of any portion of the Property; if a subtenant or occupant fails or refuses to execute and deliver an Estoppel Certificate in substantially the form approved by Buyer, Buyer shall have the right (but not the obligation) to terminate this Agreement, but the failure or refusal of the subtenant or occupant shall not constitute a breach of this Agreement by Seller unless the failure or refusal is based on a material misrepresentation by Seller; C. All other documents as may reasonably be required by Escrow Holder or Title Company to close the Escrow in accordance with this Agreement; D. An affidavit, in the form required by Treasury Regulations Section 1.1445-2(b)(2), certifying that Seller is not a "foreign person" as defined in the Internal Revenue Code. 2.6. Deposit of Documents and Funds by Buyer. Buyer shall deposit with Escrow Holder the following no later than one (1) business day prior to the Closing Date, duly executed and acknowledged where required: S7296\0001\646207.9 -3- • • A. The Purchase Price, plus such additional funds as are required to pay Buyer's costs and prorations as provided in Section 2.4 above and Section 2.8 below, less any credits Buyer is entitled to hereunder. B. An assignment of the Agency's interest in the Leasehold to the City (the"Agency Lease Assignment"). C. All other funds and documents as may be reasonably required by Escrow Holder or Title Company to close the Escrow in accordance with this Agreement. 2.7. Delivery and Recordation of Documents and Delivery of Funds at Closing. The performance of the acts set forth in this Section 2.7 shall constitute the "Closing" or the "Close of Escrow" as such terms are used in this Agreement. The Escrow Holder shall conduct the Closing by recording and distributing the following described documents and funds in the following manner: - A. Record the Lease Assignment and the Agency Lease Assignment in the Office of the County Recorder of Orange County(the "County Recorder")with any documentary transfer tax certified by way of a separate statement; B. Deliver the Estoppel Certificates to Buyer; C. Obtain and deliver the Title Policy to Buyer; D. Deliver to Seller on the Close of Escrow immediately available funds in the amount of the Purchase Price, and such other funds, if any, due Seller by reason of prorations, less Seller's closing costs and prorations, if any, as provided in Section 2.4 above and Section 2.8 below, and any credits Buyer is entitled to hereunder; and E. Pay the costs referred to in Section 2.4, above. Concurrently with the Closing, Seller shall deliver possession of the Property to Buyer, subject to the rights of subtenants under approved subleases. 2.8. Proration. A. Proration of Real Estate or Possessory Interest Taxes. Seller acknowledges Buyer's representation that Buyer is exempt from real estate taxation. If a proration of real property or possessory interest taxes (collectively, "Property Taxes") on the Property or the Leasehold would result in a credit to Seller and a charge against Buyer, there shall be no proration of Property Taxes, but Seller shall be entitled to any refund under Revenue and Taxation Code Section 5096.7. Buyer shall execute any requests for cancellation of taxes and take any other actions reasonably required in order to obtain cancellation of the Property Taxes and any refund to Seller. If a proration of Property Taxes would result in a charge against Seller and a credit to Buyer, Property Taxes shall be prorated to the date of the Close of Escrow. Seller shall indemnify and hold Buyer, the Leasehold and the Property from and against any and all Property Taxes attributable to the period prior to the Closing Date. Any prorations of Property Taxes shall be computed by Escrow Holder based on a 365-day year. 57296\0001\646207.9 -4- • B. Rents; Utilities; Deposits. Escrow Holder shall prorate through Escrow, on the basis of a 30-day month, rent under the Ground Lease, all nondelinquent rents from sublessees and all water, gas, electric and other utility services on the Property, based on a statement prepared by Seller and approved by Buyer. Security deposits and prepaid rents held by Seller under Subleases shall be charged against Seller and credited to Buyer. C. Tentative Closing Costs. At least three (3)business days prior to the Closing Date, Escrow Holder shall deliver to Seller and to Buyer copies of a tentative schedule setting forth a preliminary determination of Seller's and Buyer's closing costs and all written detail used by the Escrow Holder to make such determination. 2.9. Buyer's Conditions to Closing. Buyer shall not be obligated to proceed to the Close of Escrow and the Closing shall not occur unless and until, in addition to all other conditions contained in this Agreement, the following conditions have been satisfied, or waived in writing by Buyer: A. Intentionally omitted. B. Approval of Physical Condition. On or before the expiration of thirty (30) days following the execution of this Agreement (the "Feasibility Period"), Buyer shall have approved in writing to Seller the physical condition of the Property. Should Buyer disapprove any matters regarding the physical condition of the Property, this Agreement and the Escrow shall terminate in accordance with Section 2.11 herein. C. Intentionally omitted. D. Approval of Estoppel Certificates. Buyer shall have approved all of the Estoppel Certificates prior to the Close of Escrow. E. Issuance of Title Policy. The Title Company shall be prepared to issue the Title Policy as of the Close of Escrow. F. Waiver. The foregoing conditions set forth in this Section 2.9 are for the benefit of Buyer, and may be waived by Buyer in a writing delivered to Seller and Escrow Holder. In satisfying the foregoing conditions, Buyer and Seller shall each exercise good faith, reasonableness, and diligence. 2.10. Approval of Bankruptcy Court. Seller's obligation to sell the Leasehold to Buyer is conditioned upon the approval of this transaction by the United States Bankruptcy Court, Eastern District of California, Case No. 289-03204-A-U. Seller shall seek such approval promptly following execution of this Agreement. Buyer acknowledges that such approval is subject to potential overbid by third parties. If the approval is not obtained due to an overbid in the Bankruptcy Court, Seller may terminate this Agreement upon payment to Buyer of a termination fee equal to the lesser of: (i) $25,000; and (ii) 50% of the amount by which the approved sale price exceeds $740,000. 2.11. Termination of Agreement. Upon any termination of this Agreement and the Escrow in accordance with the provisions of this Agreement, except as a result of either party's default, (i) each party shall execute such documents as Escrow Holder may reasonably 57296\0001\646207.9 -5- • • require to evidence such termination, (ii) Escrow Holder shall return all documents and funds to the party who deposited them, (iii)Escrow Holder shall charge its fees and expenses to the party obligated to pay them hereunder in accordance with Section 2.4.A above, and(iv) all obligations of either party under this Agreement (other than payment of the termination fee described in Section 2.10) shall terminate. 3. Seller's Representations and Warranties. Seller represents and warrants to Buyer that, unless otherwise provided in this Agreement, at the date of execution hereof and at and as of the Closing Date: 3.1. Corporate Existence and Authority. Seller is a California limited partnership acting by and through the duly appointed and acting post-confirmation Chapter 11 Trustee of California Historic Properties-80, a California limited partnership, DBA CHP-80, Debtor, in United States Bankruptcy Court, Eastern District of California, Case No. 289-03204- A-11, which limited partnership is (i) validly existing and in good standing under the laws of the State of California; and (ii) subject to the approval required in Section 2.10, duly authorized, qualified and licensed under any and all laws, ordinances, rules, regulations and requirements of all applicable governmental authorities to do all things required of it under or in connection with this Agreement. This Agreement and all agreements, instruments and documents herein provided to be executed or to be caused to be executed by Seller are duly executed by and binding upon Seller. 3.2. Documents. All the documents and information delivered by Seller to Buyer in connection with the Property and this Agreement and the exhibits attached thereto are true and correct copies of what they purport to represent. 3.3. Approvals and Consents. Except as described in Section 2.10, no approvals or consents of any person or entity other than Seller shall be required in order for Seller to enter into this Agreement and to do all things required of it under or in connection with this Agreement. 3.4. Use of Property; Hazardous Substances. To Seller's knowledge, without investigation: (i) since the commencement date of the Ground Lease, the Property has been used solely for office, recording studio and retail purposes; and (ii) except for immaterial amounts of Hazardous Material commonly used in connection with normal office and retail use, the Property is free from Hazardous Material, as defined in Section 5. 4. Buyer's Representations and Warranties. Buyer hereby represents and warrants to Seller that at the date of execution hereof and at and as of the Closing Date: 4.1. Existence and Authority. Buyer has the authority to do all things required of Buyer under or in connection with this Agreement. This Agreement and all agreements, instruments and documents herein provided to be executed or to be caused to be executed by Buyer are duly executed by and binding upon Buyer. 4.2. Approvals and Consents. No approvals or consents of any person or entity other than Buyer shall be required in order for Buyer to enter into this Agreement and to do all things required of Buyer under or in connection with this Agreement. S7296\0001\646207.9 -6- • • 4.3. Buyer's Investigation; AS IS. Except for express representations made by Seller in this Agreement,Buyer is relying and shall rely solely upon its own investigation and inspection of the Property and the improvements thereon and upon the aid and advice of Buyer's independent expert(s) in purchasing the Leasehold, and shall take title to the Leasehold without any warranty, express or implied, by Seller or any employee or agent of Seller. BUYER ACKNOWLEDGES AND AGREES THAT, EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, SELLER HAS NOT MADE ANY REPRESENTATIONS, WARRANTIES, GUARANTIES, PROMISES, STATEMENTS OR ASSURANCES WHATSOEVER, EXPRESS OR IMPLIED, DIRECTLY OR THROUGH ANY EMPLOYEE OR AGENT,AS TO THE CONDITION OF THE PROPERTY, OR ANY OTHER MATTER, INCLUDING, BUT NOT LIMITED TO, HAZARDOUS MATERIALS. BUYER'S PURCHASE OF THE LEASEHOLD IS "AS IS,WHERE IS". 5. Hazardous Material. 5.1. Definition of Hazardous Material. As used herein, the term "Hazardous Material" means any hazardous or toxic substance, material, or waste which is or becomes regulated by any local governmental authority, the State of California or the United States Government. The term "Hazardous Material" includes, without limitation, any material or substance which is (i) defined as "hazardous waste," "extremely hazardous waste," or "restricted hazardous waste" under Sections 24115, 15117 or 25122.7, or listed pursuant to section 25140, of the California Health and Safety Code,Division 20, Chapter 6.5 (Hazardous Waste Control Law), (ii) defined as a "hazardous substance" under Section 25316 of the California Health and Safety Code, Division 20, Chapter 6.8 (Carpenter-Presley-Tatter Hazardous Substance Account Act), (iii) defined as a "hazardous material," "Hazardous substance," or "hazardous waste"under Section 25501 of the California Health and Safety Code, Division 20, Chapter 6.95 (Hazardous Materials Release Response Plans and Inventory), (iv) defined as a "hazardous substance" under Section 25281 of the California Health and Safety Code, Division 20, Chapter 6.7 (Underground Storage of Hazardous Substances), (v) petroleum, (vi) asbestos, (vii) listed under Article 9 or defined as hazardous or extremely hazardous pursuant to Article 11 of Title 22 of the California Administrative Code, Division 4, Chapter 20, (viii) Federal Water Pollution Control Act(33 U.S.C. §1317), (ix) defined as a "hazardous waste" pursuant to Section 1004 of the Federal Resource Conservation and Recovery Act, 42 U.S.C. §6901 et seq. (42 U.S.C. §6903) or(x) defined as a "hazardous substance"pursuant to Section 101 of the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. §9601 et seq. (42 U.S.C. §601). 5.2. Right to Inspect. During the Feasibility Period, Seller and Buyer shall each have the right, at their respective cost and expense, to conduct such physical inspections of the Property as either may reasonably desire, including but not limited to inspections to determine the presence or absence of Hazardous Material on or under the Property. Such inspections by Buyer shall be conducted at reasonable times and under reasonable circumstances and shall be subject to the prior approval of Seller. Each party shall promptly deliver the results of such inspections to the other. 5.3. Clean-up of Hazardous Material. If Buyer determines that an unacceptable level of Hazardous Material exists on or under the Property, Seller may, at Seller's sole discretion, either(1) terminate this Agreement, in which event the provisions of Section 2.11 shall apply, or (2) commence to remove such Hazardous Material from the Property at S7296\0001\646207.9 -7- • • Seller's sole cost and expense, in which event the Close of Escrow shall be delayed until following Seller's completion of such removal. Notwithstanding the foregoing to the contrary, if such removal is not completed by Seller within six (6) months following the Opening of Escrow, or if Seller chooses to discontinue such clean-up at any time within such six (6)month period, then this Agreement shall automatically terminate and the provisions of Section 2.11 shall apply. 5.4. Buyer's Inspection. If Seller elects to remove such Hazardous Material pursuant to Section 5.3 above, upon completion of such removal, Seller shall deliver to Buyer and to Escrow Holder notice stating that such removal has been completed. Within thirty(30) days following Buyer's receipt of such notice, Buyer shall inspect the Property in order to determine the presence or absence of Hazardous Material on or under the Property. If such inspection reveals that the level of Hazardous Material remaining on or under the Property is acceptable to Buyer in Buyer's sole discretion,then Buyer shall be obligated to proceed to the Close of Escrow, and the Close of Escrow shall occur within two (2)weeks following Buyer's inspection. 6. Seller's Personal Property. Seller warrants that none of Seller's personal property is located on the Property, and that none of Seller's personal property is necessary for the operation of the Property as it is currently operated. 7. Operation Prior to Closing. From and after the execution of this Agreement, Seller shall not enter into any subleases, contracts or agreements pertaining in any way to the Property or the occupancy thereof that are not terminable on or before the date on which Seller is required to deliver possession of the Property to Buyer. Notwithstanding the foregoing, Seller shall maintain and repair the Property in accordance with the Ground Lease until the Closing. 8. Right of Entry. Buyer and its representatives, employees, contractors, agents and designees shall have the right to enter upon the Property, at Buyer's sole cost and expense, in order to inspect and investigate the Property and to conduct any and all surveys, tests and studies Buyer deems necessary or convenient, provided that Buyer shall restore any damage done to the Property as the result of any such tests, surveys or studies. Such entry shall be made only after reasonable advance written notice to Seller by Buyer and at times reasonably acceptable to Seller. Such right of entry shall be exercised in a manner which reasonably minimizes any disruption to tenants in the Property. Buyer shall indemnify, defend and hold Seller and the Property free and harmless from any and all claims, demands, liabilities, costs, expenses, penalties, damages, losses and liens, including,without limitation, reasonable attorneys' fees, arising out of any such entry by Buyer or its representatives, employees, agents, contractors or designees. The indemnity provided for herein shall survive the termination of this Agreement. The inspections of the Property conducted by Buyer under the terms of this Agreement shall be subject to the terms of this Section 8 and shall be considered entries upon the Property for the purposes of this Section 8. 9. Limitations of Claims. 9.1. No Threat of Condemnation. Seller acknowledges that Seller has periodically solicited offers from the City for the transaction which is the subject of this Agreement, and did so independently of and without regard to any actions or contemplated actions of Buyer; Seller did not act under any threat of condemnation. Seller acknowledges and agrees that Seller has no right or entitlement to make any claims against Buyer or its officials, 57296\0001\646207.9 -8- • • employees, agents or attorneys for just compensation, severance damages, compensation for loss of goodwill,precondemnation damages, inverse condemnation, attorneys' fees, litigation expenses, costs, interest, relocation benefits, or any other claims whatever, arising out of or • relating to pre-acquisition activities of Buyer or its officials, employees, agents or attorneys. Seller's claims to compensation with respect to the Leasehold are limited to the Purchase Price payable under this Agreement. 9.2 No Personal Liability of Trustee or Limited Partners. Buyer acknowledges that Karl W. Dolk is acting in a representative capacity on behalf of California Historic Properties-80, a California limited partnership, and that the remaining constitutent partners of California Historic Properties-80, a California limited partnership, are limited partners. Neither Karl W. Dolk nor any constituent limited partner of California Historic Properties-80 shall have any personal liability for the obligations of Seller under this Agreement. Buyer agrees that it shall look solely to the assets of California Historic Properties-80 for the enforcement of any claims arising hereunder or related hereto. The terms of this subsection 9.2 are a material consideration and inducement to Seller to enter into this Agreement, and but for the inclusion of such provision in this Agreement, Seller would not enter into this Agreement. 10. Commissions. Seller hereby represents and warrants to Buyer that no broker, salesman or finder has been engaged by it in connection with the transaction contemplated by this Agreement, other than CB Richard Ellis, Inc. ("Broker"). Buyer hereby represents and warrants to Seller that Buyer has made no statement or representation or entered into any agreement with a broker, salesman or finder, other than Broker, in connection with the transaction contemplated by this Agreement. The parties acknowledge that Broker represents Seller only in this transaction. Seller shall pay any commission due Broker and shall indemnify, hold harmless and defend Buyer from and against claim by Broker. In the event of any claim for broker's or finder's fees or commissions in connection with the negotiation or execution of this Agreement or the transaction contemplated hereby by any person or entity other than Broker, Seller shall indemnify, hold harmless and defend Buyer from and against such claim if it shall be based upon any statement or representation or agreement alleged to have been made by Seller, and Buyer shall indemnify, hold harmless and defend Seller if such claim shall be based upon any statement, representation or agreement alleged to have been made by Buyer. 11. Attorneys'Fees. If any action or proceeding shall be brought by either party in order to enforce the provisions of this Agreement, or to collect damages as a result of the breach of any of the provisions of this Agreement, the prevailing party shall be entitled to recover all reasonable costs incurred in connection therewith, including attorneys' fees. 12. Notices. Whenever Escrow Holder or any party hereto shall desire, or be obligated,to give or serve upon the other any notice, demand, request or other communication, each such notice, demand, request or other communication shall be in writing, shall be given by personal delivery or by registered or certified United States mail, return receipt requested, postage prepaid, addressed as follows: TO SELLER: Karl W. Dolk, Trustee do Muto-Dolk Associates 931 Howe Avenue. #101 Sacramento, CA 95825 57296\0001\646207.9 -9- • • with a copy to: McDonough, Holland & Allen 555 Capitol Mall, 9th Floor Sacramento, CA 95814 Attn: Jeffry R. Jones, Esq. TO BUYER: City of Seal Beach 211 8th Street Seal Beach, California 90740 Attn: City Manager with a copy to: Richards, Watson & Gershon 333 South Hope Street, 38th Floor Los Angeles, CA 90071 Attn: Quinn M.Barrow, City Attorney TO ESCROW HOLDER: First American Title Company #2 First American Way Santa Ana, CA 92707 Attn: Eric Bowen Any such notice, demand, request or other communication shall be deemed effective on the day of actual delivery as shown by the addressee's return receipt or the expiration of three business days after the date of mailing, whichever is earlier. The foregoing addresses may be changed by notice given in accordance with this Section 12. 13. Amendment; Complete Agreement. All amendments and supplements to this Agreement must be in writing and executed by Buyer and Seller. All understandings and agreements between the parties regarding the Property are merged in this Agreement, which alone fully and completely expresses the agreement of the parties regarding the Property. This Agreement has been drafted through a joint effort of the parties and their counsel and therefore shall not be construed against either of the parties as the draftsperson. This Agreement shall not be binding upon either party hereto until fully executed by both parties; 14. Governing Law. This Agreement shall be governed under the laws of the State of California. 15. Counterparts, Signatures and Headings. This Agreement may be executed in several counterparts each of which shall be deemed an original, but all of such counterparts shall constitute one Agreement. Except for documents to be recorded, signatures of the parties may be delivered by facsimile transmission; such facsimile signatures shall be treated in all respects as having the same effect as an original signature. The headings used herein are for convenience only and are not to be construed to be part of this Agreement. S7296\0001\646207.9 -10- • • 16. Binding Effect. This Agreement shall be binding upon the heirs, executors, administrators, successors and assigns of Seller and Buyer. 17. Time of the Essence. Time is of the essence of this Agreement. 18. Waiver. The waiver by one party of performance of any covenant, condition or promise shall not invalidate this Agreement, nor shall it be considered to be a waiver by it of any other covenant, condition or promise. The waiver by either or both parties of the time for performing any act shall not constitute a waiver of the time for performing any other act or an identical act required to be performed at a later time. 19. Third Parties. Nothing contained in this Agreement, expressed or implied,is intended to confer upon any person other than the parties hereto and their successors and assigns, any rights or remedies under or by reason of this Agreement. 20. Severability. If any one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision hereof and this Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein,unless such invalidity, illegality or unenforceability materially affects the transactions contemplated by this Agreement or the ability of either party to perform its obligations under this Agreement. In such case, either party may terminate this Agreement and the Escrow on written notice to the other party given no later than ten(10) business days after the party giving such notice becomes aware of such invalidity, illegality or unenforceability, and the provisions of Section 2.11 above shall apply. 21. Additional Documents. Each party hereto agrees to perform any further acts and to execute and deliver any further documents which may be reasonably necessary to carry out the provisions of this Agreement. 57296\0001\646207.9 -11- • IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written. KARL W. DOLK, POST-CONFIRMATION CHAPTER 11 TRUSTEE IN THE BANKRUPTCY OF CALIFORNIA HISTORIC PROPERTIES-80, A CALIFORNIA LIMITED PARTNERSHIP, DBA CHP-80, DEBTOR, UNITED STATES BANKRUPTCY COURT, EASTERN DISTRICT OF CALIFORNIA, CASE NO. 289-03204-A-11 ("Seller") CITY OF SEAL BEACH ("City") ayor ATTEST: 4 ., _ _ ,...... . , J _..... g Clerk sr THE REDEVELOPMENT AGENCY OF THE CITY OF SEAL BEACH("Agency") By: 12 Chair 41 . 4,, . Receipt of the foregoing instructions by Escrow Holder is acknowledged and accepted; and Escrow Holder agrees to hold and dispose of the funds and documents deposited in the escrow in accordance with such instructions. - Date: , 2001 FIRST AMERICAN 1'11 LE COMPANY By: Its: S7296\0001\646207.9 -12- • • • EXHIBIT A LEGAL DESCRIPTION Being those portions of Lots 1,3,5 and 7, and Block 107 of Bay City Map in the City of Seal Beach, County of Orange, State of California,recorded in Book 3,Page 19 of miscellaneous maps, records of Orange County,more particularly described as follows: Beginning at the southeast corner of said Lot 1; Thence,northeasterly 87 feet along the easterly line of said Lots 1,3,5 and 7, said easterly lot line also being the westerly line of 8th Street, to a point of intersection with the easterly prolongation of the exterior face of the northerly wall of the old City Hall building constructed in 1929; Thence,northwesterly perpendicular to said 8th Street, along the exterior face of said wall and its prolongation, 58.3 feet; Thence,northeasterly, parallel to 8th Street, 10.7 feet; Thence,northwesterly, perpendicular to 8th Street, 59.2 feet,to the westerly line of said Lots 1,3,5 and 7; Thence, southwesterly 97.7 feet along said westerly line to the southwest corner of Lot 1; Thence, southeasterly 117.5 feet along the southerly line of Lot 1 to the point of beginning. S7296\0001\646207.9 • • CERTIFICATE OF ACCEPTANCE (Govt. Code § 27281) This is to certify that the interests in real property commonly known as 201 8th Street, Seal Beach, California 90740, conveyed to the City of Seal Beach, a municipal corporation ("Grantee"), by Karl W. Dolk, Post-Confirmation Chapter 11 Trustee in the Bankruptcy of California Historic Properties-80, a California limited partnership, d/b/a CHP-80, Debtor, United States Bankruptcy Court, Eastern District of California, Case No. 289-03204-A-11 ("Grantor"), pursuant to that certain Assignment of Lease and Subleases dated as of August 23, 2001, is hereby accepted by order of the City Council of the City of Seal Beach made in regular session on April 9, 2001, and the Grantee consents to the recordation thereof by its duly authorized officer. Dated: August 24, 2001 CITY OF SEAL BEACH, a municipal co a ation By: J . n B. Bahorski, City Manager / Attest: Bk7-714asaiy_i?Li‘ Pi {Joanne Yeo, City Cler 665994.1 • • • ASSIGNMENT OF LEASEHOLD INTEREST FOR VALUE RECEIVED, THE REDEVELOPMENT AGENCY OF THE CITY OF SEAL BEACH, a public body, corporate and politic (the "Assignor"), hereby grants, transfers and assigns to the CITY OF SEAL BEACH, a municipal corporation (the "Assignee"), all of the Assignor's entire right, title and interest (the "Leasehold") in and to that certain parcel of real property consisting of approximately 11,025 square feet of land area located at 201 8`h Street in the City of Seal Beach, Orange County, California, as more particularly described in Exhibit "A" attached hereto and incorporated by reference herein, and the improvements thereon, consisting of a two-story building containing approximately 9,231 square feet of floor area (collectively, the "Property"), together with all rents, income, issues and profits arising from the Leasehold, and any renewals and modifications thereof, and together with all rents, income, issues and profits from the use and occupancy of the Property and from any property covered by the Leasehold, whether real, personal, mixed or intangible. This Assignment is intended to be, and shall be construed as creating, an absolute assignment unto Assignee, subject only to the terms and provisions hereof, and not an assignment as security, and to such extent shall be unconditional and irrevocable except as hereinafter provided to the contrary. It is the intent of this Assignment that Assignor's interest as tenant in the Property merges with Assignee's interest as landlord in the Property, thereby causing the Leasehold to terminate. In connection with and as a part of this Assignment, Assignor hereby warrants, represents and agrees, to and with Assignee, as follows: 1. Assignor represents and warrants that: (a) there has been no prior assignment of the Leasehold which is now in effect, and (b) the Leasehold has been entered into in the name of Assignor or Assignor's predecessor-in-interest. 2. Assignor agrees that: (a) Assignor shall observe and perform all obligations imposed upon it under the Leasehold; (b) Assignor shall not, without the prior written consent of Assignee, collect any rents, income or profits accruing under the Leasehold or from the Property more than two (2) months in advance of the time when they shall become due; (c) Assignor shall not execute any other assignment of the Leasehold or assignment of rents accruing under the Leasehold or from the Property; (d) Assignor shall execute and deliver to Assignee such further assurances and assignments of leases on the Property as Assignee shall from time to time require; (e) As any new lease is executed with respect to the Property, or any part thereof, whether as a replacement for the existing Leasehold, in whole or in part, or as to space not theretofore leased, Assignor shall deliver to Assignee a fully signed copy thereof; and (f) Assignor shall not, without the prior written consent of Assignee, amend or modify the Leasehold or accept the surrender of or otherwise terminate the Leasehold. 3. Assignor acknowledges and agrees that Assignor is assigning all of its right, title and interest in and to the Property pursuant to that certain Agreement of Purchase and Sale and Escrow Instructions dated July 11', 2001, by and Between Karl W. Dolk, Post-Confirmation Chapter 11 Trustee in the Bankruptcy of California Historic Properties-80, a California Limited Partnership, dba Chp-80, Debtor, United States Bankruptcy Court, Eastern District of California, Case No. 289-03204-A-11, as Seller, and Assignee and the City of Seal Beach, a municipal corporation, collectively as Buyer. 4. This Assignment, together with the agreements and warranties herein contained, shall inure to the benefit of Assignee and its successors and assigns and shall be binding upon Assignor and its heirs, successors and assigns as to all or any part of the Property. 5. This Assignment is made pursuant to and shall be construed and governed by the laws of the United States and the laws of the State of California and the rules and regulations promulgated thereunder. Whenever possible, each provision of this Assignment shall be interpreted in such manner as to be effective and valid under applicable law, but if any paragraph, clause or provision of this Assignment is construed or interpreted by a court of competent jurisdiction to be void, invalid or unenforceable, such decision shall affect only those paragraphs, clauses or provisions so construed or interpreted and shall not affect the remaining paragraphs, clauses and provisions of this Assignment. IN WITNESS WHEREOF, this Assignment has been executed as of the day of August, 2001. THE REDEVELOPMENT AGENCY OF THE CITY OF SEAL ACH, a pub ' body, corporate and politic By: John ahorski, Executive Director ATTEST: Jqanne Ye o, Secretary S7296\0603\663362.2 -2- • • Exhibit "A" LEGAL DESCRIPTION OF PROPERTY [To be attached] S7296\0603\663362.2 ';. This document ww��electronically recorded by • RECORDING REQUESTED BY • FIRSWII ERICAN TITLE FIRST AMERICAN TITLE COMPANY ' s COMMERCIALIINDUSTRIALi DIVISION alttDL15(o-03 Recorded in Official Records,County of Orange Recording Requested by and Ga L. Granville, Clerk-Recorder When Recorded Return to: I I II III II I I I I I I I 1 1 1 1 1 1 18. 00 City of Seal Beach Street 211 8`h 20010596672 04:07pm 08/27/01 Seal Beach, California 90740 100 67 A32 7 Attn: City Manager 0.00 0.00 0.00 0.00 12.00 0.00 0.00 0.00 ■ FREE RECORDING REQUESTED •' •• • • ••• •r (Space Above for Recorder's Use) ASSIGNMENT OF LEASE AND SUBLEASES FOR GOOD AND VALUABLE CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH ARE HEREBY ACKNOWLEDGED, KARL W. DOLK, POST- CONFIRMATION CHAPTER 11 TRUSTEE 1N THE BANKRUPTCY OF CALIFORNIA HISTORIC PROPERTIES-80, A CALIFORNIA LIMITED PARTNERSHIP, DBA CHP-80, DEBTOR, UNITED STATES BANKRUPTCY COURT, EASTERN DISTRICT OF CALIFORNIA, CASE NO. 289-03204-A-11 (the "Assignor"), hereby grants, transfers and assigns to the CITY OF SEAL BEACH, a municipal corporation (the "Assignee"), all of the Assignor's entire right, title and interest in and to that certain parcel of real property consisting of approximately 11,025 square feet of land area located at 201 8th Streefin the City of Seal Beach, Orange County, California, as more particularly described in Exhibit "A" attached hereto and incorporated by reference herein, and the improvements thereon, consisting of a two-story building containing approximately 9,231 square feet of floor area (collectively, the "Property"), including but not limited to: (i) that certain Sub-Sublease dated January 9, 1984, by and between Assignee as Sub-Sublessor and Assignor, as Sub-Sublessee (the "Lease"), a Memorandum of which was recorded August 8, 1984, as Instrument No. 84-329431, Official Records of Orange County, California, as amended by an Amendment of Lease, dated May 30, 1984, a Memorandum of which was recorded August 30, 1984, as Instrument No. 84-363186, Official Records of Orange County, California, and (ii) those certain unrecorded sub-sub-subleases (collectively, the "Subleases") listed in Exhibit `B" attached hereto and incorporated by reference herein, together with all rents, income, issues and profits arising from the Lease and the Subleases, and any renewals and modifications thereof, and together with all rents, income, issues and profits from the use and occupancy of the Property and from any property covered by the Lease and/or the Subleases, whether real,'personal, mixed or intangible. This Assignment is intended to be, and shall be construed as creating, an absolute assignment unto Assignee, subject only to the terms and provisions hereof, and not an assignment as security, and to such extent shall be unconditional and irrevocable except as hereinafter provided to the contrary. It is the intent of this Assignment that Assignor's interest, as Sub-Sublessee under the Lease merges with.Assignee's interest as Sub-Sublessor under the Lease, thereby causing the Lease to terminate. It is the intent of this Assignment that Assignor's interest as Sub-Sub-Sublessor in the Subleases is transferred to Assignee and that such sub-sub- subleasehold estate continues. • In connection with and as a part'of this Assignment, Assignor hereby warrants, represents and agrees, to and with Assignee, as follows: 1. Assignor represents and warrants that: (a) there has been no prior assignment of the Lease and/or the Subleases which is now in effect, and (b) the Lease and the Subleases have been entered into in the name of Assignor or Assignor's predecessor-in-interest. 2. Assignor agrees that: (a) Assignor shall observe and perform all obligations imposed upon the Sub-Sublessee under the Lease and as Sublessor under the Subleases; (b) Assignor shall not, without the prior written consent of Assignee, collect any rents, income or profits accruing under the Lease or the Subleases or from the Property more than two (2) months in advance of the time when they shall become due; (c) Assignor shall not execute any other assignment of the Sub- Sublessee's interest in the Lease or the Sublessor's interest in the Subleases or assignment of rents accruing under the Lease or the Subleases or from the Property; (d) Assignor shall execute and deliver to Assignee such further assurances and assignments of Leases and/or Subleases on the Property as Assignee shall from time to time require; (e) As any new lease is executed with respect to the Property, or any part thereof, whether as a replacement for the existing Lease or Subleases, in whole or in part, or as to space not theretofore leased, Assignor shall deliver to Assignee a fully signed copy thereof; and (f) Assignor shall not, without the prior written consent of Assignee, amend or modify the Lease or the Subleases or accept the surrender of or otherwise terminate the Lease or any of the Subleases. 3. Assignor acknowledges and agrees that Assignee has contemporaneously herewith delivered to Assignor the sum of Seven Hundred Forty Thousand Dollars ($740,000.00) as the purchase price for the leasehold interests being transferred to Assignee hereunder, pursuant to that certain Agreement of Purchase and Sale and Escrow instructions dated July 11, 2001, by and between Assignor, as Seller, and Assignee and the Redevelopment Agency of the City of Seal Beach, a public body, corporate and politic, collectively as Buyer. 4. This Assignment, together with the agreements and warranties herein contained, shall inure to the benefit of Assignee and its successors and assigns and shall be binding upon Assignor and its heirs, successors and assigns as to all or any part of the Property. 5. This Assignment is made pursuant to and shall be construed and governed by the laws of the United States and the laws of the State of California and the rules and regulations promulgated thereunder. Whenever possible, each provision of this Assignment shall be interpreted in such manner as to be effective and valid under applicable law, but if any paragraph, clause or provision of this Assignment is construed or interpreted by a court of competent jurisdiction to be void, invalid or unenforceable, such decision shall affect only those paragraphs, clauses or provisions so construed or interpreted and shall not affect the remaining paragraphs, clauses and provisions of this Assignment. IN WITNESS WHEREOF, this Assignment has been executed as of the 23U day of August, 2001. KARL W. DOLK, POST-CONFIRMATION CHAPTER 11 TRUSTEE IN THE BANKRUPTCY OF CALIFORNIA HISTORIC PROPERTIES-80, A CALIFORNIA LIMITED PARTNERSHIP, DBA CHP-80, DEBTOR, UNITED STATES BANKRUPTCY COURT, EASTERN DISTRICT OF CALIFORNIA, CASE NO. 289-03204-A-11 ("Assignor") 5 ` l • • STATE OF CALIFORNIA ) ) ss. COUNTY OF SACRAMENTO ) On this ,7342 day of 4146-41 i 2001, before me J. ly C K.t n n o n a Notary Public in and for said State, personally appeared KARL W. DOLK, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument, and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the within instrument. WITNESS my hand and official seal. Signature' (Seal) ota Public o°• *� J. MC KINNON e '/- w_..,.�,Tt Comm.N 1243977 N JJ �/ vIV,-$4,&•,..,14? NOTARY PUBLIC•CALIFOBNIA VI . He ki n n o n it County of Sacramento Name (Typed or Printed) "arm Imy comm.Expires Dec.18,2003 t • • Exhibit A-- , ALL THAT CERTAIN LAND SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF ORANGE, CITY OF SEAL BEACH, DESCRIBED AS FOLLOWS: THOSE PORTIONS OF LOTS I, 3, 5 AND 7, BLOCK 107, OF THE BAY CITY TRACT, AS SHOWN ON A MAP RECORDED IN BOOK 3, PAGE 19 OF MISCELLANEOUS MAPS, RECORDS OF ORANGE COUNTY, CALIFORNIA, DESCRIBED AS FOLLOWS: BEGINNING AT THE MOST SOUTHERLY CORNER OF SAID LOT 1; THENCE NORTHEASTERLY 87.52 FEET ALONG THE SOUTHEASTERLY LINE OF SAID LOTS 1, 3, 5 AND 7; THENCE NORTHWESTERLY PERPENDICULAR TO SAID 8TH STREET AS SHOWN ON SAID MAP A DISTANCE OF 58.30 FEET; THENCE NORTHEASTERLY PARALLEL TO SAID 8TH STREET A DISTANCE OF 10.70 FEET; THENCE NORTHWESTERLY PERPENDICULAR TO SAID 8TH STREET A DISTANCE OF 59.20 FEET TO THE NORTHWESTERLY LINE OF SAID LOT 7; THENCE SOUTHWESTERLY 97.70 FEET ALONG THE NORTHWESTERLY LINES OF SAID LOTS 7, 5, 3 AND 1 TO THE MOST WESTERLY CORNER OF SAID LOT I; THENCE SOUTHEASTERLY 117.50 FEET ALONG THE SOUTHWESTERLY LINE OF SAID LOT 1 TO THE POINT OF BEGINNING. • • Exhibit `B" LIST OF UNRECORDED SUBLEASES 1. Sublease for 201 8th Street, Suite 100, Seal Beach, California 90740, by and between Karl W. Dolk, as Post Confirmation Chapter 11 Trustee for California Historic Properties 80, a limited partnership, as Sublessor, and Jim Klisanin, an individual d/b/a Baytown Realty, as Sublessee, dated December 1, 1997, as amended by First Amendment to Lease dated November 1, 1999. 2. Sub-Sublease for 201 8`h Street, Suite 100, Seal Beach, California 90740, by and between Jim Klisanin, an individual d/b/a Baytown Realty, as Sub-Sublessor, and Brad McKinzie, as Sub-Sublessee, dated May 29, 2001, pursuant to the Sublease described above in paragraph 1 dated December 1, 1997, as amended by First Amendment to Lease dated November 1, 1999. 3. Sublease for 201 8`h Street, Suite 110, Seal Beach, California 90740, by and between Karl W. Dolk, as Post Confirmation Chapter 11 Trustee for California Historic Properties 80, a limited partnership, as Sublessor, and Thad W. Schamberger, an individual d/b/a Ned's House of Produce, as Sublessee, dated January 1, 1998, as amended by First Amendment to Lease dated January 1, 2000, and Second Amendment to Lease dated January 1, 2001. 4. Sublease for 201 8th Street, Suite 130, Seal Beach, California 90740, by and between Karl W. Dolk, as Post Confirmation Chapter 11 Trustee for California Historic Properties 80, a limited partnership, as Sublessor, and Edgewood Consulting Group, a New Jersey corporation, as Sublessee, dated November 3, 1997, as amended by First Amendment to Lease dated November 1, 1999. 5. Sublease for 201 8`h Street, Suite 140, Seal Beach, California 90740, by and between Karl W. Dolk, as Post Confirmation Chapter 11 Trustee for California Historic Properties 80, a limited partnership, as Sublessor, and Seal Beach Cable Communications Foundation, a California corporation, as Sublessee, dated March 1, 1998, as amended by First Amendment to Lease dated March 1, 1999, and Second Amendment to Lease dated March 1, 2000, and letter from Karl W. Dolk to Sublessee dated March 8, 2001. 6. Sublease for 201 8`h Street, Suite 150, Seal Beach, California 90740, by and between Karl W. Dolk, as Post Confirmation Chapter 11 Trustee for California Historic Properties 80, a limited partnership, as Sublessor, and Bill L. Knight d/b/a B.L. Knight Electric, Inc., as Sublessee, dated January 1, 1999, as amended by letter from Karl W. Dolk to Sublessee dated November 30, 2000. 7. Sublease for 201 8th Street, Suites 170, 180 and 190, Seal Beach, California 90740, by and between Karl W. Dolk, as Post Confirmation Chapter 11 Trustee for California Historic Properties 80, a limited partnership, as Sublessor, and Micki Sangster, an individual, as Sublessee, dated August 1, 1998, as amended by First Amendment to Lease dated March 1, 2000, and letter from Sublessor to Sublessee dated November 30, 2000. j • • CERTIFICATE OF ACCEPTANCE (Govt. Code § 27281) This is to certify that the interests in real property commonly known as 201 8th Street, Seal Beach, California 90740, conveyed to the City of Seal Beach, a municipal corporation ("Grantee"), by Karl W. Dolk, Post-Confirmation Chapter 11 Trustee in the Bankruptcy of California Historic Properties-80, a California limited partnership, d/b/a CHP-80, Debtor, United States Bankruptcy Court, Eastern District of California, Case No. 289-03204-A-11 ("Grantor"), pursuant to that certain Assignment of Lease and Subleases dated as of August 23, 2001, is hereby accepted by order of the City Council of the City of Seal Beach made in regular session on April 9, 2001, and the Grantee consents to the recordation thereof by its duly authorized officer. Dated: August 24, 2001 CITY OF SEAL : ,CH, a munici•- 6. •oration By: J..An B. Bahorski, City Manager Attest: By:' =::‘ / tt -oanne Yeo, City Clerk 665994.1 • • CERTIFIED TO BE A TRUE AND CORRECT COPY OF THE ORIGINAL DOCUMENT RECORDED ON ('.)-7-4/ Recording Requested by and UNDER RECORDER'S SERIES NO. gal ,)-• When Recorded Return to: (c' 0/Y1 COUNTY RECORDS City of Seal Beach FIRST AMERICAN`TITLE CO. 211 Seal 8th Beach,Street I V t, 1 /l�lA,� Seal Beach, California 90740 BY: Attn: City Manager FREE RECORDING REQUESTED PURSUANT TO GOVERNMENT CODE 327383 (Space Above for Recorder's Use) ASSIGNMENT OF LEASE AND SUBLEASES FOR GOOD AND VALUABLE CONSIDERATION, THE RECEIPT AND SUFFICIENCY OF WHICH ARE HEREBY ACKNOWLEDGED, KARL W. DOLK, POST- CONFIRMATION CHAPTER 11 TRUSTEE IN THE BANKRUPTCY OF CALIFORNIA HISTORIC PROPERTIES-80, A CALIFORNIA LIMITED PARTNERSHIP, DBA CHP-80, DEBTOR, UNITED STATES BANKRUPTCY COURT, EASTERN DISTRICT OF CALIFORNIA, CASE NO. 289-03204-A-11 (the "Assignor"), hereby grants, transfers and assigns to the CITY OF SEAL BEACH, a municipal corporation (the "Assignee"), all of the Assignor's entire right, title and interest in and to that certain parcel of real property consisting of approximately 11,025 square feet of land area located at 201 8th Street in the City of Seal Beach, Orange County, California, as more particularly described in Exhibit "A" attached hereto and incorporated by reference herein, and the improvements thereon, consisting of a two-story • building containing approximately 9,231 square feet of floor area (collectively, the "Property"), including but not limited to: (i) that certain Sub-Sublease dated January 9, 1984, by and between Assignee as Sub-Sublessor and Assignor as Sub-Sublessee (the "Lease"), a Memorandum of which was.recorded August 8, 1984, as Instrument No. 84-329431, Official Records of Orange • County, California, as amended by an Amendment of Lease, dated May 30, 1984, a Memorandum of which was recorded August 30, 1984, as Instrument No. 84-363186, Official Records of Orange County, California, and (ii) those certain unrecorded sub-sub-subleases (collectively, the "Subleases") listed in Exhibit `B" attached hereto and incorporated by reference herein, together with all rents, income, issues and profits arising from the Lease and the Subleases, and any renewals and modifications thereof, and together with all rents, income, issues and profits from the use and occupancy of the Property and from any property covered by the Lease and/or the Subleases, whether real, personal, mixed or intangible. This Assignment is intended to be, and shall be construed as creating, an absolute assignment unto Assignee, subject only to the terms and provisions hereof, and not an assignment as security, and to such extent shall be unconditional and irrevocable except as hereinafter provided to the contrary. It is the intent of this Assignment that Assignor's interest as Sub-Sublessee under the Lease merges with Assignee's interest as Sub-Sublessor under the Lease, thereby causing the Lease to terminate. It is the intent of this Assignment that Assignor's interest as Sub-Sub-Sublessor in the Subleases is transferred to Assignee and that such sub-sub- subleasehold estate continues. • • In connection with and as a part of this Assignment, Assignor hereby warrants, represents and agrees, to and with Assignee. as follows: 1. Assignor represents and warrants that: (a) there has been no prior • assignment of the Lease and/or the Subleases which is now in effect, and (b) the Lease and the Subleases have been entered into in the name of Assignor or Assignor's predecessor-in-interest. 2. Assignor agrees that: (a) Assignor shall observe and perform all obligations imposed upon the Sub-Sublessee under the Lease and as Sublessor under the Subleases; (b) Assignor shall not, without the prior written consent of Assignee, collect any rents, income or profits accruing under the Lease or the Subleases or from the Property more than'two (2) months in advance of the time when they shall become due; (c) Assignor shall not execute any other assignment of the Sub- Sublessee's interest in the Lease or the Sublessor's interest in the Subleases or assignment of rents accruing under the Lease or the Subleases or from the Property; (d) Assignor shall execute and deliver to Assignee such further assurances and assignments of Leases and/or Subleases on the Property as Assignee shall from time to time require; (e) As any new lease is executed with respect to the Property, or any part thereof, whether as a replacement for the existing Lease or Subleases, in whole or in part, or as to space not theretofore leased, Assignor shall deliver to Assignee a fully signed copy thereof; and (f) Assignor shall not, without the prior written consent of Assignee, amend or modify the Lease or the Subleases or accept the surrender of or otherwise terminate the Lease or any of the Subleases. 3. Assignor acknowledges and agrees that Assignee has contemporaneously herewith delivered to Assignor the sum of Seven Hundred Forty Thousand Dollars ($740,000.00) as the purchase price for the leasehold interests being transferred to Assignee hereunder, pursuant to that certain Agreement of Purchase and Sale and Escrow Instructions dated July 11, 2001, by and between Assignor, as Seller, and Assignee and the Redevelopment Agency of the City of Seal Beach, a public body, corporate and politic, collectively as Buyer. 4. This Assignment, together with the agreements and warranties herein contained, shall inure to the benefit of Assignee and its successors and assigns and shall be binding upon Assignor and its heirs, successors and assigns as to all or any part of the Property. 5. This Assignment is made pursuant to and shall be construed and governed by the laws of the United States and the laws of the State of California and the rules and regulations promulgated thereunder. Whenever possible, each provision of this Assignment shall be interpreted in such manner as to be effective and valid under applicable law, but if any paragraph, clause or provision of this Assignment is construed or interpreted by a court of competent jurisdiction to be void, invalid or unenforceable, such decision shall affect only those paragraphs, clauses or provisions so construed or interpreted and shall not affect the remaining paragraphs, clauses and provisions of this Assignment. • • • IN WITNESS WHEREOF, this Assignment has been executed as of the 23 day of August, 2001. L • - KARL W. DOLK, POST-CONFIRMATION CHAPTER 11 TRUSTEE IN THE BANKRUPTCY OF CALIFORNIA HISTORIC PROPERTIES-80, A CALIFORNIA LIMITED PARTNERSHIP, DBA CHP-80, DEBTOR, UNITED STATES BANKRUPTCY COURT, EASTERN DISTRICT OF CALIFORNIA, CASE NO. 289-03204-A-11 • ("Assignor") • • STATE OF CALIFORNIA ) ) ss. COUNTY OF SACRAMENTO On this ,{3' day of 446ur T" 2001, before me J. M c K.r n n 0 n a Notary Public in and for said State, personally appeared KARL W. DOLL personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument, and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the within instrument. WITNESS my hand and official seal. Signature: Ida (Seal) ot. Public .o^�� J. MC KINNON the � Comm.a 1243977 n 1I ,/ ui '' =115^• NOTARY PUBLIC-CALIFORNIA _'. He Rr n n „ n `` ." 'e County of Sacramento'rczn zy.Sa m.Exoires Dec.18,2003 r Name(Typed or Printed) ----- f • 0 Exhibit I I • ALL THAT CERTAIN LAND SITUATED IN THE STATE OF CALIFORNIA. COUNTY OF ORANGE. CITY OF SEAL BEACH. DESCRIBED AS FOLLOWS: THOSE PORTIONS OF LOTS 1, 3, 5 AND 7; BLOCK 107, OF THE BAY CITY TRACT, AS SHOWN ON A MAP RECORDED N BOOK 3, PAGE 19 OF MISCELLANEOUS MAPS. RECORDS OF ORANGE COUNTY, CALIFORNIA, DESCRIBED AS FOLLOWS: BEGINNING AT THE MOST SOUTHERLY CORNER OF SAID LOT 1; THENCE NORTHEASTERLY 87.52 FEET ALONG THE SOUTHEASTERLY LINE OF SAID LOTS 1, 3, 5 AND 7; THENCE NORTHWESTERLY PERPENDICULAR TO SAID 8TH STREET AS SHOWN ON SAID MAP A DISTANCE OF 58.30 FEET; THENCE NORTHEASTERLY PARALLEL TO SAID 8TH STREET A DISTANCE OF 10.70 FEET; THENCE NORTHWESTERLY PERPENDICULAR TO SAID 8TH STREET A DISTANCE OF 59.20 FEET TO THE NORTHWESTERLY LINE OF SAID LOT 7; THENCE SOUTHWESTERLY 97.70 FEET ALONG THE NORTHWESTERLY LINES OF SAID LOTS 7, 5, 3 AND 1 TO THE MOST WESTERLY CORNER OF SAID LOT 1; THENCE SOUTHEASTERLY 117.50 FEET ALONG THE SOUTHWESTERLY LINE OF SAID LOT I TO THE POINT OF BEGINNING. • • • Exhibit`B" LIST OF UNRECORDED SUBLEASES 1. Sublease for 201 8`h Street, Suite 100, Seal Beach, California 90740, by and between Karl W. Dolk, as Post Confirmation Chapter 11 Trustee for California Historic Properties 80, a limited partnership, as Sublessor, and Jim Klisanin, an individual d/b/a Baytown Realty, as Sublessee, dated December 1, 1997, as amended by First Amendment to Lease dated November 1, 1999. 2. Sub-Sublease for 201 8`h Street, Suite 100, Seal Beach, California 90740, by and between Jim Klisanin, an individual d/b/a Baytown Realty, as Sub-Sublessor, and Brad McKinzie, as Sub-Sublessee, dated May 29, 2001, pursuant to the Sublease described above in paragraph 1 dated December 1, 1997, as amended by First Amendment to Lease dated November 1, 1999. 3. Sublease for 201 8`h Street, Suite 110, Seal Beach, California 90740, by and between Karl W. Dolk, as Post Confirmation Chapter 11 Trustee for California Historic Properties 80, a limited partnership, as Sublessor, and Thad W. Schamberger, an individual d/b/a Ned's House of Produce, as Sublessee, dated January 1, 1998, as amended by First Amendment to Lease dated January 1, 2000, and Second Amendment to Lease dated January 1, 2001. 4. Sublease for 201 8`h Street, Suite 130, Seal Beach, California 90740, by and between Karl W. Dolk, as Post Confirmation Chapter 11 Trustee for California Historic Properties 80, a limited partnership, as Sublessor, and Edgewood Consulting Group, a New Jersey corporation, as Sublessee, dated November 3, 1997, as amended by First Amendment to Lease dated November I, 1999. 5. Sublease for 201 8th Street, Suite 140, Seal Beach, California 90740, by and between Karl W. Dolk, as Post Confirmation Chapter 11 Trustee for California Historic Properties 80, a limited partnership, as Sublessor, and Seal Beach Cable Communications Foundation, a California corporation, as Sublessee, dated March 1, 1998, as amended by First Amendment to Lease dated March I, 1999, and Second Amendment to Lease dated March 1, 2000, and letter from Karl W. Dolk to Sublessee dated March 8, 2001. 6. Sublease for 201 8`h Street, Suite 150, Seal Beach, California 90740, by and between Karl W. Dolk, as Post Confirmation Chapter 11 Trustee for California Historic Properties 80, a limited partnership, as Sublessor, and Bill L. Knight d/bia B.L. Knight Electric, Inc., as Sublessee, dated January 1, 1999, as amended by letter from - Karl W. Dolk to Sublessee dated November 30, 2000. 7. Sublease for 201 8`h Street, Suites 170, 180 and 190, Seal Beach, California 90740, by and between Karl W. Dolk, as Post Confirmation Chapter 11 Trustee for California Historic Properties 80, a limited partnership, as Sublessor, and Micki Sangster, an individual, as Sublessee, dated August t, 1998, as amended by First Amendment to Lease dated March 1, 2000, and letter from Sublessor to Sublessee dated November 30, 2000. • • To: ORANGE COUNTY RECORDER Re: ASSIGNMENT OF LEASE AND SUBLEASE Dear Sir/Madam: You are requested to affix Real Property Transfer Tax stamps in the amount of SNONE - SEE BELOW to the document attached and described below after the permanent record is made and before the document is returned, pursuant to Section 11932 R&T Code. ASSIGNOR: KARL W. DOLK,POST-CONFIRMATION CHAPTER 11 TRUSTEE ASSIGNEE CITY OF SEAL BEACH Transfer Tax: SNONE-GOVERNMENTAL AGENCY ACQUIRING TITLE R&T 11922 and unrecorded leases are of a term of less than 30 years /4 11' Signature of Party submitting document (J /,23 G Date