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Resolution No. 9009f, 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 9009 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON APPROVING AND AUTHORIZING THE EXECUTION OF AN AMENDED AND RESTATED ACCESS AGREEMENT BY AND BETWEEN THE CITY OF VERNON AND DYNAMIC BUILDERS, INC. FOR PROPERTY LOCATED AT 4900 BANDINI BOULEVARD WHEREAS, by Resolution No. 8850 adopted on September 7, 2005, the City of Vernon approved the sale of real property located at 4900 Bandini Boulevard, as corrected to 4901 Bandini Boulevard (the "Property") to Dynamic Builders, Inc. ("Dynamic") for future development; and WHEREAS, on January 4, 2006, the City Council of the City of Vernon adopted Resolution No. 8923 approving an Access Agreement with Dynamic setting forth the terms and conditions under which the City allowed Dynamic early access to the Property for development and staging work as preliminary steps to commencing construction; and WHEREAS, the escrow with Dynamic will close by June 2006 and the City and Dynamic desire to amend the original Access Agreement to cover a broader scale of allowable work of improvement prior to the close of escrow. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF VERNON AS FOLLOWS: SECTION 1: The City Council of the City of Vernon hereby finds and determines that the recitals contained hereinabove are true and correct. SECTION 2: The City Council of the City of Vernon hereby approves the Amended and Restated Access Agreement with Dynamic, in substantially the same form as the copy which is attached hereto as 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Exhibit A and incorporated by reference. SECTION 3: The City Council of the City of Vernon hereby authorizes and empowers the Acting City Clerk and/or his designee to make whatever non -substantive and administrative changes, upon advice of counsel, to the form. SECTION 4: The City Council of the City of Vernon hereby authorizes the Mayor to execute the Agreement for, and on behalf of, the City of Vernon and the Acting City Clerk is hereby authorized to attest thereto. SECTION 5: The City Council of the City of Vernon hereby directs the Acting City Clerk, or his designee, to send one original signed Agreement to: Sandra Slon, Esq. Troy & Gould 1801 Century Park East, 16th Floor Los Angeles, CA 90067-2367 SECTION 6: The Acting City Clerk of the City of Vernon shall certify to the passage of this resolution, and thereupon and thereafter the same shall be in full force and effect. APPROVED AND ADOPTED this 5th day of April, 2006. LEONISC.�MAL�U , Mayor ATTEST: BRUCE KENHORST, JR., Acting City Clerk - 2 - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 STATE OF CALIFORNIA ) ) ss COUNTY OF LOS ANGELES ) I, BRUCE V. MALKENHORST, JR., Acting City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 9009, was duly adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Wednesday, April 5, 2006, and thereafter was duly signed by the Mayor Pro Tem of the City of Vernon. (SEAL) - 3 - BRUCE . MALKENHORST, JR. Acting City Clerk EXHIBIT 0 AMENDED AND RESTATED ACCESS AGREEMENT This Amended and Restated Access Agreement (this "Agreement") is entered into as of March 30, 2006, by and between the City of Vernon ("City") and Dynamic Builders, Inc., a California corporation ("Dynamic") and amends and restates an earlier Access Agreement dated January 4, 2006 by and between the City and Dynamic ("Original Agreement") in regard to that certain parcel property containing approximately twelve (12) acres and located at 4901 Bandini Boulevard, City of Vernon, State of California (the "Property"), with reference to the following facts and circumstances: RECITALS A. The City and Dynamic entered into a Standard Offer, Agreement and Escrow dated August 31, 2005 ("Purchase and Sale Agreement") pursuant to which the City agreed to sell and Dynamic agreed to purchase an approximately nine (9) acre portion of the Property after subdivision and mapping by the City ("Mapping Process") and other terms and conditions have been satisfied. B. Because of delays in the Mapping Process and so as not to hold-up the development of the Property by Dynamic, the parties entered into the Original Agreement to allow Dynamic early access to the Property for developmental and staging work in anticipation that a lease would be negotiated between the parties pursuant to which Dynamic would be constructing certain improvements on the Property prior to the closing of the Purchase and Sale Agreement. C. It is now anticipated that the Mapping Process will be completed by July 2006, and the parties believe it would be in both their best interests to amend the Original Agreement to cover a broader scale of allowable work of improvement by Dynamic on the Property rather then spend the time to negotiate a full scale lease when the term of the lease would only be for a short period. D. Dynamic has requested that the City agree to amend the Original Agreement to permit Dynamic to enter upon the Property, (i) install a trailer on the Property, (ii) undertake mobilization activities (as preliminary steps to commencing construction), (iii) apply for a grading permit and to commence grading in accordance with the terms and conditions of any such permit and (iv) apply for and obtain a building permit and commence construction in accordance with the terms and conditions of any such permit prior to the closing of the Purchase and Sale Agreement. The City has agreed to Dynamic's request pursuant to the terms and conditions set forth herein. AGREEMENT NOW, THEREFORE, in consideration of the facts in the foregoing recitals, the covenants and agreements contained herein, and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties hereto, the parties covenant and agree as follows: 01910/0030 132152.5 1. The Original Agreement is hereby amended and restated in its entirety as though this Agreement were entered into between the parties on January 4, 2006. 2. Under the terms of this Agreement, Dynamic is hereby granted a license to install a trailer at a location on the Property approved by the City and undertake mobilization, as defined herein, on the terms and conditions set forth herein, and as otherwise required by the City. (a) The trailer is to be a standard size construction trailer that is to be used solely for on -site construction offices for project management and supervision. It will be located on the north end of the site, and its exact location is to be approved in writing by the City prior to installation. (b) For purposes of this Agreement, mobilization shall refer to the importation of soil onto the Property. Prior to the importation of any soil onto the Property, Dynamic will provide the City with (i) all requested information, including, without limitation, documentation of where the soil was excavated from (including address, zoning, and prior use of the site); (ii) an estimate of the quantity of soil to be imported; and (iii) soil sampling analyses, acceptable to the City in its sole judgment, to assure that the soil is not contaminated. Importation of the soil shall not commence until the City has provided written approval, which approval will be based on the documentation and soil samples provided by Dynamic. (c) Upon receipt of prior written approval from the City and subject to any conditions established by the City, Dynamic's mobilization may also include the right to install temporary utilities, webcam, and project signage. The City's execution of this Agreement does not obligate the City to consent to installation of temporary utilities, webcam, or project signage. (d) Collectively, the installation of the trailer and the mobilization shall be referred to as the "Preliminary Work". 3. Upon completion of the Preliminary Work and subject to the City having approved the plans and specifications for the development of the Property ("Plans and Specifications"), Dynamic may apply to the City for a grading permit ("Grading Permit"). A Grading Permit will not be issued until the City has approved Dynamic's storm water pollution prevention plan and reviewed and approved the nature and quantity of soil to be imported. Upon issuance of the Grading Permit, the City hereby grants Dynamic a license to commence and complete the grading of the Property in accordance with the terms of the Grading Permit and this Agreement. 4. After the Grading Permit has been issued and Dynamic has satisfied all of the conditions thereof and required by this Agreement to commence grading, Dynamic may submit to the City its Plans and Specifications for the development of the Property and upon written approval thereof by the City, Dynamic may apply for a building permit to commence -2- 01910/0030 132152.5 construction of its project on the Property ("Building Permit"). Upon issuance of the Building Permit, the City hereby grants Dynamic a license to commence and complete the construction of its project on the Property in accordance with the terms of the Building Permit and this Agreement. 5. The performance of any work of improvement on the Property in accordance with this Agreement ("Work") shall be at Dynamic's sole cost, expense and risk. All Work shall be undertaken in accordance with good and proper techniques, using personnel and equipment qualified to perform the Work being undertaken, and shall be undertaken in compliance with all applicable statutes, codes, ordinances and regulations. All required permits shall have been obtained and all conditions satisfied before any Work shall be commenced. Any holes, borings, trenches, or other invasive work performed at the Property by Dynamic or under its supervision or control will be properly filled in and compacted or returned to the condition existing prior to entry by the Dynamic onto the Property, and any unsafe conditions at the Property caused by or under the control of Dynamic shall be repaired and remediated. In this regard, Dynamic agrees to ameliorate and remove from the Property with all reasonable due care, in a safe manner and to a safe degree in accordance with all applicable laws as the same may be changed from time to time, at its sole costs and expense, any contamination by Hazardous Materials (as defined below) in, on, about and beneath the Property, which contamination was caused by Dynamic or resulted from its investigation or grading of the Property, and to monitor or cause to be monitored the levels of such contamination caused by Dynamic or resulting from its Work on about or beneath the Property in accordance with the terms and procedures as may be required by any federal, state or local governmental agency or agencies having jurisdiction. Such work and the restoration of the Property pursuant to paragraph 6 below shall be referred to collectively as the "Ameliorative Work." 6. Dynamic shall not commence any Ameliorative Work unless the City has approved in writing complete plans and specifications therefor (the "Ameliorative Plans"). All work shall be done in accordance with the approved Ameliorative Plans and no material change or modification shall be permitted without the prior written approval of the City. Notwithstanding the foregoing, in the event of any emergency situation requiring immediate Ameliorative Work in Dynamic's reasonable judgment, Dynamic shall be permitted to undertake such Ameliorative Work without the City's prior approval so long as Dynamic promptly notifies the City thereof and, if necessary, promptly submits to the City modified Ameliorative Plans for approval. All Ameliorative Work of Dynamic or its environmentalconsultants and engineers hereunder shall be diligently conducted and prosecuted to completion in a timely manner. Dynamic acknowledges and agrees that it shall cooperate with and shall direct its environmental consultants and engineers to cooperate with the City and its consultants and engineers. Dynamic warrants, represents and agrees that the methods of performing any investigation of Hazardous Materials and the Ameliorative Work, if any, will conform to the highest standards of environmental and other appropriate consultants as applied by a firm of environmental or other appropriate consultants of national reputation specializing in work of the type involved in the Los Angeles County, California area and will comply with all applicable requirements of any governmental agencies having jurisdiction over such matters. Additionally, all soils, soil gas and water testing pursuant to any investigation shall be performed by an Environmental Protection Agency -approved or a State of California -certified laboratory, and the Ameliorative Work shall be performed by an independent qualified hydrogeologist, chemical engineer or other person or -3- 01910/0030 132152.5 entity of recognized standing nominated by Dynamic and approved by the City. Such work shall be monitored, at the City's option, by the City and/or its consultants and engineers. 7. Dynamic agrees to purchase at its own expense and keep in force during the term of this Agreement a Commercial General Liability policy of insurance protecting Dynamic and the City, its elected officials, staff, employees and consultants (the "City Parties") as an additional insured against claims for bodily injury, personal injury and property damage based upon or arising out of the ownership, use, occupancy and activities on the Property and all areas appurtenant thereto. Such insurance shall be on an occurrence basis providing single limit coverage in an amount not less than $2,000,000 per occurrence with an annual aggregate of not less than $5,000,000, an "Additional Insured -Managers or Lessors of Premises Endorsement" and contain the "Amendment of the Pollution Exclusion Endorsement" for damage caused by heat, smoke or fumes from a hostile fire. The policy shall not contain any intra-insured exclusions as between insured persons or organizations, but shall include coverage for liability assumed by Dynamic under this Agreement as an "insured contract" for the performance of Dynamic's indemnity obligations under this Agreement. The limits of said insurance shall not, however, limit the liability of Dynamic nor relieve Dynamic of any obligation hereunder. All insurance carried by Dynamic shall be primary to and not contributory with any similar insurance carried by the City, whose insurance shall be considered excess insurance only. Prior to any construction commencing pursuant to a Building Permit, Dynamic shall obtain and keep in force a policy or policies in the name of Dynamic and the City, with loss payable to Dynamic insuring loss or damage to the improvements being constructed on the Property covering "all risks" builder's risk insurance, including vandalism and malicious mischief, with limits in the total amount of the construction and the value of all improvements. The amount of such insurance shall be equal to the full replacement cost of all of the improvements being constructed on the Property. Such policy or policies shall insure against all risks of direct physical loss or damage (except the perils of flood and/or earthquake), including coverage for debris removal and the enforcement of any applicable laws requiring the upgrading, demolition, reconstruction or replacement of any portion of the improvements on the Property as the result of a covered loss. If such insurance coverage has a deductible clause, the deductible amount shall not exceed $10, 000 per occurrence, and Dynamic shall be liable for such deductible amount in the event of an insured loss. Dynamic shall also maintain in full force and effect until the termination of this Agreement, Workers' Compensation and Employer's Liability Insurance as required by law with a limit of liability of at least $1,000,000 each occurrence/aggregate. Each of the foregoing policies except for the Workers' Compensation and Employer's Liability Policy shall name the City Parties as an additional insured party as its interests may appear. The Commercial General Liability policy shall include contractual liability coverage, oral and written, operations premises liability, personal injury, independent contractors, broad form property damage, and cross - liability coverage. In addition, Dynamic shall require each of Dynamic's contractors to procure, pay for and keep in full force and effect until the completion of the work being performed by such contractor the same policies required to be carried by Dynamic, in each case with limits not less than One Million Dollars ($1,000,000) per occurrence. 8. All insurance required herein shall be by companies duly licensed or admitted to transact business in the state where the Property is located, and maintaining during the policy term a "General Policyholders Rating" of at least B+, V, as set forth in the most current issue of "Best's Insurance Guide". Dynamic shall not do or permit to be done anything which invalidates -4- 01910/0030 132152.5 the required insurance policies. Dynamic shall, prior to entering the Property, deliver to the City certificates evidencing the existence and amounts of the required insurance (including the Declaration Page and Schedule of Forms of Endorsement). No such policy shall be cancelable or subject to modification except after 30 days prior written notice to the City. Dynamic shall, at least 30 days prior to the expiration of such policies, furnish the City with evidence of renewals or "insurance binders" evidencing renewal thereof, or the City may order such insurance and charge the cost thereof to Dynamic, which amount shall be payable by Dynamic to the City upon demand. Such policies shall be for a term of at least one year. 9. Dynamic shall keep the Property free and clear of all mechanic's, materialmen's and other liens resulting from the Work, any Ameliorative Work or any of its other work under this Agreement. Dynamic agrees that the City may post, record and maintain a Notice of Nonresponsibility for Dynamic's work on the Property. 10. Dynamic, for itself, its officers, directors, shareholders, the "Dynamic Parties", and others entering onto the Property at the request of Dynamic, hereby releases the City, its elected officials, staff, employees, representatives and agents (the "City Parties") from all claims, actions, losses, damages, injuries, costs and expenses (including, without limitation, reasonable attorneys' fees and costs), including all claims of illness, injury, death, or property damage, arising out of or resulting from any Dynamic Parties entering onto the Property or performing any Work thereon. 11. Dynamic shall protect, defend, indemnify and hold harmless the City Parties (any of the foregoing shall be known individually as "Indemnitee" and collectively as "Indemnitees"), and each of them, jointly and severally, against and from: (a) Any and all claims, demands, causes of action, damages, costs, expenses, losses and liabilities, at law or in equity, of every kind or nature whatsoever, including, but not limited to, injury to or death of any person or persons and damage to or destruction of any property, threatened, brought or instituted, arising out of or in any manner directly or indirectly connected with the entry upon the Property by Dynamic or any of its agents, including without limitation: i) any damage to the Property and any liability to any third party incurred by reason of any acts of omission or commission or any negligent or tortious acts by Dynamic or any agent or other person acting on behalf of Dynamic; ii) any liens, claims, demands, actions or suits arising (directly or indirectly) from (a) any work performed or materials supplied to or for Dynamic or (b) any activities of any Dynamic's agents on or relating to the Property (including without limitation any claims by any of such agents); iii) any loss or theft whatsoever of any property or anything placed or stored by Dynamic or its agents on or about the Property; -5- 01910/0030 132152.5 iv) any costs of enforcement of any provision of this Agreement, or the costs of removing Dynamic or its agents from the Property; v) any Hazardous Materials released by Dynamic onto the Property or any adjacent or nearby property, or into the environment; vi) Dynamic's obligations under this Agreement; and vii) any work under this Agreement, including but not limited to any investigation and/or any Ameliorative work performed by Dynamic or any entity authorized by Dynamic. (b) Any and all penalties threatened, sought or imposed on account of the violation of any laws, statutes, regulations or ordinances pertaining to (1) Hazardous Materials released onto the Property or any adjacent or nearby property, or into the environment by, or as a result of Dynamic, its employees, agents or consultants, (2) Dynamic's obligations under this Agreement; or (3) any Work under this Agreement, including but not limited to any Ameliorative Work performed by Dynamic or any entity authorized by Dynamic. 12. Dynamic shall, at Dynamic's own cost, expense and risk: (a) Defend all suits, actions or other legal or administrative proceedings that may be threatened, brought or instituted against an Indemnitee or Indemnitees, as the case may be, or on account of any matter or matters arising under this Agreement; (b) Reimburse Indemnitee or Indemnitees, or any of them, for any and all expenses including, but not limited to, all reasonable legal expenses, arising out of, or attributable to or in connection with enforcing the indemnity granted in this Agreement or in participating in any action, proceedings or litigation related thereto. The law firm selected by Dynamic to perform the functions described above shall be subject to the approval of the Indemnitee or Indemnitees asserting a claim hereunder. 13. The term of the Agreement shall commence as of January 4, 2006, and the period and shall terminate on the first to occur of (1) the closing of the Purchase Agreement, (2) the termination of the escrow opened in connection with the Purchase Agreement, or (3) September 30, 2006, unless an extension hereto has been signed by the parties. Notwithstanding termination of this Agreement for any reason, Dynamic's obligations under this Agreement shall continue in full force and effect until satisfied. 14. Notwithstanding the term of this Agreement, the licenses granted to Dynamic herein shall be revocable in whole or in part by the City upon notice from the City to Dynamic that Dynamic has failed to comply with any material provision of this Agreement or the Purchase and Sale Agreement if such default is not cured within 15 days following delivery of notice of -6- 01910/0030 132152.5 default. The revocation of the license granted herein shall in no way prejudice any of the rights and remedies available to the City at law or in equity, and Dynamic acknowledges and agrees that all of the obligations and responsibilities of Dynamic under this Agreement shall continue and survive such termination. If the license granted herein is cancelled Dynamic shall promptly remove the trailer and cease all mobilization and Work at the Property, remove all of its equipment located at the Property (including any temporary utilities and signage), and repair any damage done to the Property by Dynamic, its employees, agents, consultants, contractors, or subcontractors (collectively, the "Dynamic Parties") at Dynamic's sole cost and expense. 15. Nothing in this Agreement shall be deemed to create any duty by the City, its officers, employees, engineers, consultants arising from their review and/or approval of Dynamic's plans, drawings, specifications, or from their physical inspection of the Work. Neither the review and approval by the City or its agents of Dynamic's Plans and Specifications, drawings nor physical inspection by the City or its agents of the Property, the Work or, the Ameliorative Work, if any, or any other work done under this Agreement shall be deemed a waiver or any right the City or indemnities may have under this Agreement. 16. Each signatory hereto warrants to the other party its authority to sign on behalf of the party for whom it purports to sign. 17. In the event either party hereto brings suit to enforce the terms of this Agreement or on account of breach hereof, the party not prevailing in such suit shall pay any and all costs and expenses incurred by the other party in such suit, including, without limitation, court costs and attorneys' fees. 18. This Agreement sets forth the entire agreement of the parties with respect to the subject matter hereof and supersedes all prior discussions, negotiations, understandings or agreements relating thereto. 19. It is mutually understood and agreed that no alteration or variation of this Agreement shall be valid or binding unless made in writing and signed by the parties hereto. 20. Whenever any party hereto shall desire to give or serve any notice, demand, request, approval, disapproval or other communication, each such communication shall be in writing and shall be delivered personally, by messenger or by mail, postage prepaid, or by overnight courier, to the address set forth in this Agreement or by facsimile transmission. Service of any such communication shall be deemed made on the date of actual receipt or refusal to accept delivery. Communications transmitted by facsimile transmission shall be deemed delivered upon telephonic confirmation of receipt (confirmation report from facsimile machine is sufficient), provided a copy is also delivered via delivery or mail. If such communication is received on a Friday, Saturday, Sunday or legal holiday, it shall be deemed received on the next business day. Any party hereto may from time to time, by notice in writing, designate a different address to which, or a different person or additional persons to whom, all communications are thereafter to be made. All notices to Dynamic shall include a concurrent notice to Ken Jackson, at the same address set forth for Dynamic: -7- 01910/0030 132152.5 Dynamic Builders, Inc. 2114 South Hills Street Los Angeles, CA 90007 Attn: L. Ramon Bonin Chairman of the Board Facsimile: (213) 748-8017 Email: Kjacksonadynamicbuilders.com The City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Attn: Jeffrey Harrison, Esq. Facsimile: (323) 826-1438 Email: jharrison(abkarnskarabian.com 21. Dynamic may not assign any of its rights under this Agreement, voluntarily or by operation of law, without the City's prior written consent. Subject to the foregoing, this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, personal representatives, successors and assigns, including without limitation subsequent owners; provided, however, neither an assignment by Dynamic of this Agreement nor the assignment by Dynamic of any interest or any property of Dynamic shall release the Dynamic hereunder from its obligations to the City under this Agreement, except upon the express written consent by the City to such release. 22. This Agreement shall be construed in accordance with and governed by the laws of the State of California. 23. It is acknowledged the Indemnitees are intended third party beneficiaries to this Agreement, that this Agreement has been made expressly for the benefit of Indemnitees, and that Indemnitees shall, singularly and collectively, have the right to enforce this Agreement in accordance with the terms of this Agreement. 24. The term "Hazardous Materials" means any petroleum or natural gas substance, and any hazardous or toxic substance, material or waste which is or becomes regulated by local governmental authority, the State of California or the United States Government, including but not limited to any material defined as a "hazardous substance," "hazardous material," "toxic substance" or "hazardous waste" in (a) the Comprehensive Environmental Response, Compensation and Liability Act, as amended 42 U.S.C. §9601 et seq., (b) the Federal Water Pollution Control Act, as amended, 33 U.S.C. §1317 et seq., (c) the Resource Conservation and Recovery Act, as amended, 42 U.S.C. §9601 et seq., (d) the Hazardous Materials Transportation Act, as amended, 49 U.S.C. §1802 et seq., or (e) California Health & Safety Code §§25117, 25316, 25501(b) and 22501, and (f) in the regulations and publications promulgated pursuant to those laws. -8- 01910/0030 132152.5 25. This Agreement may be executed in counterparts, and facsimile signatures shall be enforceable and binding on the parties, provided, however, that the parties shall exchange originally signed documents on a reasonably prompt basis. IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto as of the date first written above. Attest: Dynamic Builders, Inc. L. Ramon Bonin, Chairman of the Board City of Vernon By: Leonis C. Malburg, Mayor Bruce V. Malkenhorst, Jr., Acting City Clerk Approved as to Form: Lo Jeff Harrison, Karns & Karabian, General Counsel -9- 01910/0030 132152.5 SUPPORTING DOCUMENTS AMENDED AND RESTATED ACCESS AGREEMENT This Amended and Restated Access Agreement (this "Agreement") is entered into as of March 30, 2006, by and between the City of Vernon ("City") and Dynamic Builders, Inc., a California corporation ("Dynamic") and amends and restates an earlier Access Agreement dated January 4, 2006 by and between the City and Dynamic ("Original Agreement") in regard to that certain parcel property containing approximately twelve (12) acres and located at 4901 Bandini Boulevard, City of Vernon, State of California (the "Property"), with reference to the following facts and circumstances: RECITALS A. The City and Dynamic entered into a Standard Offer, Agreement and Escrow dated August 31, 2005 ("Purchase and Sale Agreement") pursuant to which the City agreed to sell and Dynamic agreed to purchase an approximately nine (9) acre portion of the Property after subdivision and mapping by the City ("Mapping Process") and other terms and conditions have been satisfied. B. Because of delays in the Mapping Process and so as not to hold-up the development of the Property by Dynamic, the parties entered into the Original Agreement to allow Dynamic early access to the Property for developmental and staging work in anticipation that a lease would be negotiated between the parties pursuant to which Dynamic would be constructing certain improvements on the Property prior to the closing of the Purchase and Sale Agreement. C. It is now anticipated that the Mapping Process will be completed by July 2006, and the parties believe it would be in both their best interests to amend the Original Agreement to cover a broader scale of allowable work of improvement by Dynamic on the Property rather then spend the time to negotiate a full scale lease when the term of the lease would only be for a short period. D. Dynamic has requested that the City agree to amend the Original Agreement to permit Dynamic to enter upon the Property, (i) install a trailer on the Property, (ii) undertake mobilization activities (as preliminary steps to commencing construction), (iii) apply for a grading permit and to commence grading in accordance with the terms and conditions of any such permit and (iv) apply for and obtain a building permit and commence construction in accordance with the terms and conditions of any such permit prior to the closing of the Purchase and Sale Agreement. The City has agreed to Dynamic's request pursuant to the terms and conditions set forth herein. AGREEMENT NOW, THEREFORE, in consideration of the facts in the foregoing recitals, the covenants and agreements contained herein, and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties hereto, the parties covenant and agree as follows: 01910/0030.132152.5 1. The Original Agreement is hereby amended and restated in its entirety as though this Agreement were entered into between the parties on January 4, 2006. 2. Under the terms of this Agreement, Dynamic is hereby granted a license to install a trailer at a location on the Property approved by the City and undertake mobilization, as defined herein, on the terms and conditions set forth herein, and as otherwise required by the City. (a) The trailer is to be a standard size construction trailer that is to be used solely for on -site construction offices for project management and supervision. It will be located on the north end of the site, and its exact location is to be approved in writing by the City prior to installation. (b) For purposes of this Agreement, mobilization shall refer to the importation of soil onto the Property. Prior to the importation of any soil onto the Property, Dynamic will provide the City with (i) all requested information, including, without limitation, documentation of where the soil was excavated from (including address, zoning, and prior use of the site); (ii) an estimate of the quantity of soil to be imported; and (iii) soil sampling analyses, acceptable to the City in its sole judgment, to assure that the soil is not contaminated. Importation of the soil shall not commence until the City has provided written approval, which approval will be based on the documentation and soil samples provided by Dynamic. (c) Upon receipt of prior written approval from the City and subject to any conditions established by the City, Dynamic's mobilization may also include the right to install temporary utilities, webcam, and project signage. The City's execution of this Agreement does not obligate the City to consent to installation of temporary utilities, webcam, or project signage. (d) Collectively, the installation of the trailer and the mobilization shall be referred to as the "Preliminary Work". 3. Upon completion of the Preliminary Work and subject to the City having approved the plans and specifications for the development of the Property ("Plans and Specifications"), Dynamic may apply to the City for a grading permit ("Grading Permit"). A Grading Permit will not be issued until the City has approved Dynamic's storm water pollution prevention plan and reviewed and approved the nature and quantity of soil to be imported. Upon issuance of the Grading Permit, the City hereby grants Dynamic a license to commence and complete the grading of the Property in accordance with the terms of the Grading Permit and this Agreement. 4. After the Grading Permit has been issued and Dynamic has satisfied all of the conditions thereof and required by this Agreement to commence grading, Dynamic may submit to the City its Plans and Specifications for the development of the Property and upon written approval thereof by the City, Dynamic may apply for a building permit to commence -2- 01910✓0030 132152.5 construction of its project on the Property (`Building Permit"). Upon issuance of the Building Permit, the City hereby grants Dynamic a license to commence and complete the construction of its project on the Property in accordance with the terms of the Building Permit and this Agreement. 5. The performance of any work of improvement on the Property in accordance with this Agreement ("Work") shall be at Dynamic's sole cost, expense and risk. All Work shall be undertaken in accordance with good and proper techniques, using personnel and equipment qualified to perform the Work being undertaken, and shall be undertaken in compliance with all applicable statutes, codes, ordinances and regulations. All required permits shall have been obtained and all conditions satisfied before any Work shall be commenced. Any holes, borings, trenches, or other invasive work performed at the Property by Dynamic or under its supervision or control will be properly filled in and compacted or returned to the condition existing prior to entry by the Dynamic onto the Property, and any unsafe conditions at the Property caused by or under the control of Dynamic shall be repaired and remediated. In this regard, Dynamic agrees to ameliorate and remove from the Property with all reasonable due care, in a safe manner and to a safe degree in accordance with all applicable laws as the same may be changed from time to time, at its sole costs and expense, any contamination by Hazardous Materials (as defined below) in, on, about and beneath the Property, which contamination was caused by Dynamic or resulted from its investigation or grading of the Property, and to monitor or cause to be monitored the levels of such contamination caused by Dynamic or resulting from its Work on about or beneath the Property in accordance with the terms and procedures as may be required by any federal, state or local governmental agency or agencies having jurisdiction. Such work and the restoration of the Property pursuant to paragraph 6 below shall be referred to collectively as the "Ameliorative Work." 6. Dynamic shall not commence any Ameliorative Work unless the City has approved in writing complete plans and specifications therefor (the "Ameliorative Plans"). All work shall be done in accordance with the approved Ameliorative Plans and no material change or modification shall be permitted without the prior written approval of the City. Notwithstanding the foregoing, in the event of any emergency situation requiring immediate Ameliorative Work in Dynamic's reasonable judgment, Dynamic shall be permitted to undertake such Ameliorative Work without the City's prior approval so long as Dynamic promptly notifies the City thereof and, if necessary, promptly submits to the City modified Ameliorative Plans for approval. All Ameliorative Work of Dynamic or its environmental consultants and engineers hereunder shall be diligently conducted and prosecuted to completion in a timely manner. Dynamic acknowledges and agrees that it shall cooperate with and shall direct its environmental consultants and engineers to cooperate with the City and its consultants and engineers. Dynamic warrants, represents and agrees that the methods of performing any investigation of Hazardous Materials and the Ameliorative Work, if any, will conform to the highest standards of environmental and other appropriate consultants as applied by a firm of environmental or other appropriate consultants of national reputation specializing in work of the type involved in the Los Angeles County, California area and will comply with all applicable requirements of any governmental agencies having jurisdiction over such matters. Additionally, all soils, soil gas and water testing pursuant to any investigation shall be performed by an Environmental Protection Agency -approved or a State of California -certified laboratory, and the Ameliorative Work shall be performed by an independent qualified hydrogeologist, chemical engineer or other person or -3- 01910l0030 132152.5 entity of recognized standing nominated by Dynamic and approved by the City. Such work shall be monitored, at the City's option, by the City and/or its consultants and engineers. 7. Dynamic agrees to purchase at its own expense and keep in force during the term of this Agreement a Commercial General Liability policy of insurance protecting Dynamic and the City, its elected officials, staff, employees and consultants (the "City Parties") as an additional insured against claims for bodily injury, personal injury and property damage based upon or arising out of the ownership, use, occupancy and activities on the Property and all areas appurtenant thereto. Such insurance shall be on an occurrence basis providing single limit coverage in an amount not less than $2,000,000 per occurrence with an annual aggregate of not less than $5,000,000, an "Additional Insured -Managers or Lessors of Premises Endorsement" and contain the "Amendment of the Pollution Exclusion Endorsement" for damage caused by heat, smoke or fumes from a hostile fire. The policy shall not contain any intra-insured exclusions as between insured persons or organizations, but shall include coverage for liability assumed by Dynamic under this Agreement as an "insured contract" for the performance of Dynamic's indemnity obligations under this Agreement. The limits of said insurance shall not, however, limit the liability of Dynamic nor relieve Dynamic of any obligation hereunder. All insurance carried by Dynamic shall be primary to and not contributory with any similar insurance carried by the City, whose insurance shall be considered excess insurance only. Prior to any construction commencing pursuant to a Building Permit, Dynamic shall obtain and keep in force a policy or policies in the name of Dynamic and the City, with loss payable to Dynamic insuring loss or damage to the improvements being constructed on the Property covering "all risks" builder's risk insurance, including vandalism and malicious mischief, with limits in the total amount of the construction and the value of all improvements. The amount of such insurance shall be equal to the full replacement cost of all of the improvements being constructed on the Property. Such policy or policies shall insure against all risks of direct physical loss or damage (except the perils of flood and/or earthquake), including coverage for debris removal and the enforcement of any applicable laws requiring the upgrading, demolition, reconstruction or replacement of any portion of the improvements on the Property as the result of a covered loss. If such insurance coverage has a deductible clause, the deductible amount shall not exceed $10, 000 per occurrence, and Dynamic shall be liable for such deductible amount in the event of an insured loss. Dynamic shall also maintain in full force and effect until the termination of this Agreement, Workers' Compensation and Employer's Liability Insurance as required by law with a limit of liability of at least $1,000,000 each occurrence/aggregate. Each of the foregoing policies except for the Workers' Compensation and Employer's Liability Policy shall name the City Parties as an additional insured party as its interests may appear. The Commercial General Liability policy shall include contractual liability coverage, oral and written, operations premises liability, personal injury, independent contractors, broad form property damage, and cross - liability coverage. In addition, Dynamic shall require each of Dynamic's contractors to procure, pay for and keep in full force and effect until the completion of the work being performed by such contractor the same policies required to be carried by Dynamic, in each case with limits not less than One Million Dollars ($1,000,000) per occurrence. 8. All insurance required herein shall be by companies duly licensed or admitted to transact business in the state where the Property is located, and maintaining during the policy term a "General Policyholders Rating" of at least B+, V, as set forth in the most current issue of "Best's Insurance Guide". Dynamic shall not do or permit to be done anything which invalidates -4- 01910/0030 132152.5 the required insurance policies. Dynamic shall, prior to entering the Property, deliver to the City certificates evidencing the existence and amounts of the required insurance (including the Declaration Page and Schedule of Forms of Endorsement). No such policy shall be cancelable or subject to modification except after 30 days prior written notice to the City. Dynamic shall, at least 30 days prior to the expiration of such policies, furnish the City with evidence of renewals or "insurance binders" evidencing renewal thereof, or the City may order such insurance and charge the cost thereof to Dynamic, which amount shall be payable by Dynamic to the City upon demand. Such policies shall be for a term of at least one year. 9. Dynamic shall keep the Property free and clear of all mechanic's, materialmen's and other liens resulting from the Work, any Ameliorative Work or any of its other work under this Agreement. Dynamic agrees that the City may post, record and maintain a Notice of Nonresponsibility for Dynamic's work on the Property. 10. Dynamic, for itself, its officers, directors, shareholders, the "Dynamic Parties", and others entering onto the Property at the request of Dynamic, hereby releases the City, its elected officials, staff, employees, representatives and agents (the "City Parties") from all claims, actions, losses, damages, injuries, costs and expenses (including, without limitation, reasonable attorneys' fees and costs), including all claims of illness, injury, death, or property damage, arising out of or resulting from any Dynamic Parties entering onto the Property or performing any Work thereon. 11. Dynamic shall protect, defend, indemnify and hold harmless the City Parties (any of the foregoing shall be known individually as "Indemnitee" and collectively as "Indemnitees"), and each of them, jointly and severally, against and from: (a) Any and all claims, demands, causes of action, damages, costs, expenses, losses and liabilities, at law or in equity, of every kind or nature whatsoever, including, but not limited to, injury to or death of any person or persons and damage to or destruction of any property, threatened, brought or instituted, arising out of or in any manner directly or indirectly connected with the entry upon the Property by Dynamic or any of its agents, including without limitation:. i) any damage to the Property and any liability to any third party incurred by reason of any acts of omission or commission or any negligent or tortious acts by Dynamic or any agent or other person acting on behalf of Dynamic; ii) any liens, claims, demands, actions or suits arising (directly or indirectly) from (a) any work performed or materials supplied to or for Dynamic or (b) any activities of any Dynamic's agents on or relating to the Property (including without limitation any claims by any of such agents); iii) any loss or theft whatsoever of any property or anything placed or stored by Dynamic or its agents on or about the Property; -5- 01910/0030 132152.5 iv) any costs of enforcement of any provision of this Agreement, or the costs of removing Dynamic or its agents from the Property; v) any Hazardous Materials released by Dynamic onto the Property or any adjacent or nearby property, or into the environment; vi) Dynamic's obligations under this Agreement; and vii) any work under this Agreement, including but not limited to any investigation and/or any Ameliorative work performed by Dynamic or any entity authorized by Dynamic. (b) Any and all penalties threatened, sought or imposed on account of the violation of any laws, statutes, regulations or ordinances pertaining to (1) Hazardous Materials released onto the Property or any adjacent or nearby property, or into the environment by, or as a result of Dynamic, its employees, agents or consultants, (2) Dynamic's obligations under this Agreement; or (3) any Work under this Agreement, including but not limited to any Ameliorative Work performed by Dynamic or any entity authorized by Dynamic. 12. Dynamic shall, at Dynamic's own cost, expense and risk: (a) Defend all suits, actions or other legal or administrative proceedings that may be threatened, brought or instituted against an Indemnitee or Indemnitees, as the case may be, or on account of any matter or matters arising under this Agreement; (b) Reimburse Indemnitee or Indemnitees, or any of them, for any and all expenses including, but not limited to, all reasonable legal expenses, arising out of, or attributable to or in connection with enforcing the indemnity granted in this Agreement or in participating in any action, proceedings or litigation related thereto. The law firm selected by Dynamic to perform the functions described above shall be subject to the approval of the Indemnitee or Indemnitees asserting a claim hereunder. 13. The term of the Agreement shall commence as of January 4, 2006, and the period and shall terminate on the first to occur of (1) the closing of the Purchase Agreement, (2) the termination of the escrow opened in connection with the Purchase Agreement, or (3) September 30, 2006, unless an extension hereto has been signed by the parties. Notwithstanding termination of this Agreement for any reason, Dynamic's obligations under this Agreement shall continue in full force and effect until satisfied. 14. Notwithstanding the term of this Agreement, the licenses granted to Dynamic herein shall be revocable in whole or in part by the City upon notice from the City to Dynamic that Dynamic has failed to comply with any material provision of this Agreement or the Purchase and Sale Agreement if such default is not cured within 15 days following delivery of notice of -6- 01910J0030132152.5 default. The revocation of the license granted herein shall in no way prejudice any of the rights and remedies available to the City at law or in equity, and Dynamic acknowledges and agrees that all of the obligations and responsibilities of Dynamic under this Agreement shall continue and survive such termination. If the license granted herein is cancelled Dynamic shall promptly remove the trailer and cease all mobilization and Work at the Property, remove all of its equipment located at the Property (including any temporary utilities and signage), and repair any damage done to the Property by Dynamic, its employees, agents, consultants, contractors, or subcontractors (collectively, the "Dynamic Parties") at Dynamic's sole cost and expense. 15. Nothing in this Agreement shall be deemed to create any duty by the City, its officers, employees, engineers, consultants arising from their review and/or approval of Dynamic's plans, drawings, specifications, or from their physical inspection of the Work. Neither the review and approval by the City or its agents of Dynamic's Plans and Specifications, drawings nor physical inspection by the City or its agents of the Property, the Work or, the Ameliorative Work, if any, or any other work done under this Agreement shall be deemed a waiver or any right the City or indemnities may have under this Agreement. 16. Each signatory hereto warrants to the other party its authority to sign on behalf of the party for whom it purports to sign. 17. In the event either party hereto brings suit to enforce the terms of this Agreement or on account of breach hereof, the party not prevailing in such suit shall pay any and all costs and expenses incurred by the other party in such suit, including, without limitation, court costs and attorneys' fees. 18. This Agreement sets forth the entire agreement of the parties with respect to the subject matter hereof and supersedes all prior discussions, negotiations, understandings or agreements relating thereto. 19. It is mutually understood and agreed that no alteration or variation of this Agreement shall be valid or binding unless made in writing and signed by the parties hereto. 20. Whenever any party hereto shall desire to give or serve any notice, demand, request, approval, disapproval or other communication, each such communication shall be in writing and shall be delivered personally, by messenger or by mail, postage prepaid, or by overnight courier, to the address set forth in this Agreement or by facsimile transmission. Service of any such communication shall be deemed made on the date of actual receipt or refusal to accept delivery. Communications transmitted by facsimile transmission shall be deemed delivered upon telephonic confirmation of receipt (confirmation report from facsimile machine is sufficient), provided a copy is also delivered via delivery or mail. If such communication is received on a Friday, Saturday, Sunday or legal holiday, it shall be deemed received on the next business day. Any party hereto may from time to time, by notice in writing, designate a different address to which, or a different person or additional persons to whom, all communications are thereafter to be made. All notices to Dynamic shall include a concurrent notice to Ken Jackson, at the same address set forth for Dynamic: -7- 01910/0030132152.5 Dynamic Builders, Inc. 2114 South Hills Street Los Angeles, CA 90007 Attn: L. Ramon Bonin Chairman of the Board Facsimile: (213) 748-8017 Email: Kiackson@dvnamicbuilders.com The City of Vernon 4305 Santa Fe Avenue Vernon, CA 90058 Attn: Jeffrey Harrison, Esq. Facsimile: (323) 826-1438 Email: jharrison@kamskarabian.com 21. Dynamic may not assign any of its rights under this Agreement, voluntarily or by operation of law, without the City's prior written consent. Subject to the foregoing, this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, personal representatives, successors and assigns, including without limitation subsequent owners; provided, however, neither an assignment by Dynamic of this Agreement nor the assignment by Dynamic of any interest or any property of Dynamic shall release the Dynamic hereunder from its obligations to the City under this Agreement, except upon the express written consent by the City to such release. 22. This Agreement shall be construed in accordance with and governed by the laws of the State of California. 23. It is acknowledged the Indemnitees are intended third party beneficiaries to this Agreement, that this Agreement has been made expressly for the benefit of Indemnitees, and that Indemnitees shall, singularly and collectively, have the right to enforce this Agreement in accordance with the terms of this Agreement. 24. The term "Hazardous Materials" means any petroleum or natural gas substance, and any hazardous or toxic substance, material or waste which is or becomes regulated by local governmental authority, the State of California or the United States Government, including but not limited to any material defined as a "hazardous substance," "hazardous material," "toxic substance" or "hazardous waste" in (a) the Comprehensive Environmental Response, Compensation and Liability Act, as amended 42 U.S.C. §9601 et seq., (b) the Federal Water Pollution Control Act, as amended, 33 U.S.C. § 1317 et seq., (c) the Resource Conservation and Recovery Act, as amended, 42 U.S.C. §9601 et seq., (d) the Hazardous Materials Transportation Act, as amended, 49 U.S.C. §1802 et seq., or (e) California Health & Safety Code §§25117, 25316, 25501(b) and 22501, and (f) in the regulations and publications promulgated pursuant to those laws. -8- 01910J0030 132152.5 25. This Agreement may be executed in counterparts, and facsimile signatures shall be enforceable and binding on the parties, provided, however, that the parties shall exchange originally signed documents on a reasonably prompt basis. IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto as of the date first written above. DynaPBBuilde C. By: . Ramoj Bonin, Chairman of the Board City of Vernon By: -C - nis C. Malburg,-Mayor Attest: By: /1✓`- Bru V. alkenhorst, Jr., Acting City Clerk Approved as to Form: By: Eric T. Fresch, City Attorney -9- 01910/0030132152.5 This page Is part of your document - DO NOT DISCARD 06 0866994 RECORDED/FILED IN OFFICIAL RECORDS RECORDER'S OFFICE LOS ANGELES COUNTY CALIFORNIA 04/20/06 AT 08:00am TITLE(S) : IIINIIIIIIIII FEE FEE 16 HH DAF C-20 4 CODE 20 CODE 19 CODE 9 Assessor's identification Number (AIN) To be completed by Examiner OR Title Company in black Ink. D.T.T. Number of AIN's Shown THIS FORM IS NOT TO BE DUPLICATED A } LBadAmn�a CoamiigUvina Recording Requested by and When Recorded Mail to: Kenneth R. Blumer Troy & Gould 1801 Century Park East, Suite 1600 Los Angeles, California 90067 6/531ca-c;L;7 SPACE ABOVE THIS LINE FOR RECORDER'S USE ----------------------- NOTICE OF NONRESPONSIBILITY TO ALL WHOM IT MAY CONCERN: NOTICE IS HEREBY GIVEN that THE CITY OF VERNON ("the Undersigned"), is the owner of that certain twelve (12) acre parcel of real property located in the City of Vernon, County of Los Angeles, California, commonly known as 4901 Bandini Boulevard, City of Vernon, California, and legally described as set forth on Exhibit A attached hereto and incorporated herein ("Property"). The Undersigned has granted a license to DYNAMIC BUILDERS, INC. whose address is 2114 South Hill Street, Los Angeles, California 90007 to come upon and do work of improvement upon the Property at the latter's sole cost and expense. Within the last 10 days preceding this notice, the Undersigned has obtained knowledge that a work of construction is being made°upon said Property by Dynamic Builders, Inc., and the Undersigned will not be responsible for any portion of said work, nor for the payment of any labor, services or materials used or to be used therein or in connection therewith, or which hereafter may be performed, furnished or used upon the land, buildings or structures whatsoever. Dated: April 12, 2006. Thi Lo This inn,urner t f'!,-d for rscord by Commonwcs;th Lind Title insurance Company as an acconimcda'7— i on!!j. ii has not been examined as to its execution or as to its effoct upi,n the till::. 01910/0030 137145.1 SEA EX"181T ®y A ClIeD File No: 09501669 EXHIBIT "A" All that certain real property situated in the County of Los Angeles, State of California, described as follows: Parcel 1: Lot 92 in the Rancho Laguna, in the City of Vernon, County of Los Angeles, State of California, as shown on map filed as Exhibit "A" in Case No. B-25296 of the Superior Court of the State of California, Los Angeles County, State of California. Except the Northeasterly 200.00 feet. Also except that portion thereof lying Northwesterly of the Southeasterly line of Atlantic Boulevard, per deed recorded in Book 864, Page 317, Official Records, in the office of the Los Angeles Recorder. Also except that portion of said Lot 92, lying Southwesterly of the Northeasterly line of Bandini Boulevard, described as Parcel 9-4 in the deed recorded October 30, 1974, as Instrument No.,2807, Official Records, in the Office of the County Recorder. Also except that portion thereof lying Southeasterly of the following described line: Beginning at a point on the Northeasterly line of Bandini Avenue, 100 feet in width, distant thereon North 690 12' 10" West 159.65 feet from the Easterly line of said Lot 92; thence leaving said Northeasterly line North 240 12' 10" West 94.80 feet; thence North 220 11' 31" East 649.27 feet to the Southwesterly line of said Northeasterly 200.00 feet. Also except therefrom that portion described as follows: That portion of Lot 92 In the Rancho Laguna, situated in the City of Vernon, County of Los Angeles, State of California, as shown on a map filed as Exhibit "A in Case No. B-25296, of the Superior Court, of said County of Los Angeles, State of California, described as follows: Commencing at the intersection of the Southwesterly line of the Northeasterly 200.00 feet of said Lot 92 and the Easterly line of Atlantic Boulevard, (40.00 foot half -width) as described in a grant to the County of Los Angeles for public road and highway purposes, recorded February 28, 1922, in Book 864, Page 317, Official Records of said Los Angeles County; thence South 670 48' 57" East, 28.036 meters (91.98 feet) along said Southwesterly line of the Northeasterly 200.00 feet of Lot 92 to the point of beginning; thence South 030 38' 46" East 20.896 meters (68.56 feet); thence North 860 21' 14" East, 1,440 meters (4.72 feet); thence South 030 38' 46" East, 39.977 meters (131.16 feet); thence North Page . O6 o866994 File No: 09501669 850 38' 19" East 38.292 meters (125.63 feet); thence North 220 11' 31" East 37.047 meters (121.54 feet) to a point on said Southwesterly line of the Northeasterly 200.00 feet of Lot 92; thence North 67" 48' 47" West, 62.079 meters (203.67 feet) to the point of beginning. Parcel 2: That portion of the Northeasterly 200.00 feet of Lot 92 in the Rancho Laguna, situated in the City of Vernon, County of Los Angeles, Statq of California, as shown on a map filed as Exhibit "A", in Case. No. 8-25296, of the Superior Court of said State of California, Los Angeles County, described as follows: Beginning at the intersection of the Southwesterly line of said Northeasterly 200.00 feet of Lot 92 and the Easterly line of Atlantic Boulevard, (40.00 foot half -width) as described in a grant to the County of Los Angeles for public road and highway purposes, recorded February 28, 1922, in Book 864, Page 317, Official Records, of said Los Angeles County; thence South 670 48' 47" East, 28.036 meters (91.98 feet) along said Southwesterly line of the Northeasterly 200.00 feet of Lot 92; thence North 030 38' 46" West, 31.419 meters (103.08 feet) to a point on said Easterly line of Atlantic Boulevard, said point being the beginning of a non -tangent curve, concave Northwesterly, having a radius of 103.632 meters (340.00 feet), a radial line through said point bears South 490 43' 00" East; thence Southwesterly along said curve and along said Easterly line of Atlantic Boulevard, an arc length of 31.835 meters (104.44 feet), through a central angle of 170 36' 03", to the point of beginning. EXCEPT therefrom all oil, gas, minerals, and other hydrocarbon substances lying below the surface of said land, but with no right of surface entry, as provided in deeds of record. Assessor's Parcel Number: 6332-002-942,943 Page o6 0866994 VERIFICATION Bruce V. Malkenhorst, Jr. states that (1) the above Notice of Nonresponsibility is a true and correct copy of the Notice of Nonresponsibility posted on the Property by Sergio Canales, Engineering Aide in the Community Services & Water Department of the City of Vernon; and that (2) the facts stated therein are true of my own knowledge. I declare under the penalty of perjury under th laws of the State of California that the foregoing is true and correct. Executed at Vernon, Cal' is on April 13, 2006. Print;Name: ruce V. Malkenhorst, Jr. ACKNOWLEDGMENT STATE OF CALIFORNIA ) ) ss. COUNTY OF LOS ANGELES ) 0g On AprilW, 2006 before me, Manuela Giron, Notary Public, personally appeared Bruce V. Malkenhorst, Jr. (X) personally known to me, or (_, proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or entity upon behalf of which the person acted, executed the instrument. WITNESS my hand and official seal. (SEAL) ConrrNNNon - - 1611388 HlOOM Pi NC - CoOMW UM Angon Coy* My Comm. ftPkM Nor 4. 01910/0030 137145.1 Notary Public 0