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Greens Group, Inc._1st Amendment - 2020-06 2020-06 • FIRST AMENDMENT TO AGREEMENT FOR PURCHASE AND SALE OF REAL PROPERTY AND JOINT ESCROW INSTRUCTIONS This FIRST AMENDMENT TO AGREEMENT FOR PURCHASE AND SALE OF REAL PROPERTY AND JOINT ESCROW INSTRUCTIONS ("Amendment") is entered into this 11th day of May, 2020 by and between the CITY OF GRAND TERRACE, a public body, corporate and politic ("Seller") and GREENS GROUP, INC., a California corporation ("Buyer"). RECITALS: A. Seller and Buyer entered into that certain Agreement for Purchase and Sale of Real Property and Joint Escrow Instructions dated August 13, 2019 ("Original PSA"), regarding the sale of certain unimproved real property located at 22317, 22293 & 22273 Barton Road, City of Grand Terrace, County of San Bernardino (APNs 1167-311-01, 1167-231-01, & 1167-231-02) as legally described in the Original PSA. B. On August 16, 2019, Buyer delivered One Hundred Fifty Thousand Dollars ($150,000) to Escrow Holder as the Deposit under the Original PSA and Escrow No. 30034187 was opened. C. The COVID-19 pandemic and the state quarantine emergency orders have resulted in the virtual shutdown of businesses including financial institutions. Accordingly, the parties are willing to cooperate to extend certain mandatory dates and to amend certain other requirements in the Original PSA. NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth below, Seller and Buyer agree as follows: AGREEMENT 1. Recitals. The foregoing recitals are true and correct and incorporated herein by reference. 2. Defined Terms. All terms not specifically defined in this Amendment shall have the meaning in the Original PSA. 3. Amendment Effective Date. This Amendment shall be effective upon execution by Seller ("Amendment Effective Date"). 4. Amendments/Modifications. The Original PSA is amended/modified as follows: A. Section 2.2 (Opening of Escrow). The parties confirm that the Opening of Escrow occurred on August 16, 2019. B: Section 3.2.a (Deposit). Section 3.2.a is amended to reduce the original amount of the Deposit from One Hundred Fifty Thousand Dollars ($150,000) ("Original Deposit")to Fifteen Thousand Dollars ($15,000) ("Revised Deposit"). Within two (2) business days after the Amendment Effective Date, Escrow Holder is directed to release (i) One Hundred Thousand Dollars ($100,000) to Buyer, and (ii) Thirty-Five Thousand Dollars ($35,000) to Seller pursuant to Section 5 of this Amendment. All references in the Original PSA to the Deposit shall mean the Revised Deposit except for Section 10 and the references to the Deposit therein shall mean the Original Deposit. 01247.0020/642172.6 1 C. Section 5.1 (Closing Date). Section 5.1 is amended to extend the outside closing date to November 24, 2021. D. Section 6.1 (Approval of Title). On August 22, 2019, Buyer received preliminary title report No. 011-30034187-SG4 dated as of August 14, 2019 ("PTR") but did not deliver the Buyer's Title Notice and, therefore, has approved the title exceptions in the PTR. E. Section 7.1 (Due Diligence). Section 7.1 is amended to extend the Due Diligence Period to expire on November 12, 2020. F. Section 8.3. (Entitlement Process). (i) Section 8.1. (Concept Plan). The Concept Plan Approval Date was October 22, 2019. (ii) Section 8.3.a (Commencement). Buyer's obligations to commence its obligations to promptly apply for all discretionary governmental permits and approvals shall commence not later than July 14, 2020. (iii) Section 8.3.c.(Entitlement Period). Section 8.3.c. is amended to provide that the Entitlement Period will expire,on October 15, 2021. (iv) Section 8.5 (Natural Hazard Disclosure Report). The parties acknowledge that Buyer received the NHD Reports on August 20, 2019 and has approved same. 5. Consideration. The sum of Thirty-Five Thousand Dollars($35,000)("Reimbursement Amount") shall be released from Escrow to Seller as consideration for this Amendment, including the extensions, additional carry costs, and, due to the delay, additional costs for the Seller to expedite the timely review and processing of the land use entitlements, the amendments to the General Plan, applicable Master Plan, and Zoning Code, and comprehensive environmental review thereof to ensure the timely completion of the Entitlement Process and minimize any further delay. The Reimbursement Amount shall be non-refundable, not be applicable to the Purchase Price, and not be subject to the terms of the Reimbursement and Indemnification Agreement between Buyer and Seller. 6. Reaffirmation of Original PSA. Except as amended by this Amendment, the Original PSA shall remain unchanged and is hereby reaffirmed, ratified and confirmed in its entirety. If there is any conflict, inconsistency or ambiguity between the Original PSA and this Amendment,this Amendment._ shall govern and control. 7. Copv to Escrow. As soon as practical after the Amendment Effective Date,the parties shall deliver a copy of this Amendment to Escrow. 8. Entire Agreement. This Amendment constitutes the entire agreement and supersedes any prior written or oral agreements among the parties with respect to the specific matters addressed herein. 9. Authorization. Each individual executing this Amendment on behalf of Buyer represents and warrants that he/she has been duly authorized to do so on behalf of Buyer and Buyer is thereby obligated to perform the terms of PSA as amended by this Amendment. [SIGNATURES ON FOLLOWING] 01247.0020/642172.6 2 IN-vFITNESS WHEREOF,this Amendment has been executed by.Seller and Buyer as of the dates below. . BUYER: SELLER: GREE , SOUP, INC,a California City of Grand Te r ce.a rnu:nlc pal C'J(FOf( don / corporation e dihtiPI1�L�ai .5:,�:, 1i By: AM.lulosh Kadale ' Darcy McN oe,Mayer Cl !Financial Officer , 2020 ,1TEST: n Receipt Acknowledged: ESCROW HOLDER: Debra Thomas. City Clerk Fidelity National Title-insurance Company Ey:- '( APPROVED AS TO FORM: MoryLou Adcrne,Escrow Office: ,qeshlre F.Wyndor.LLP Dated: .202C / ST._1(24-- / - Adrian R.Guerra, City ttarney IN WITNESS WHEREOF, this Amendment has been executed by Seller and Buyer as of the dates below. BUYER: SELLER: GREE ROUP, INC, a California City of Grand Terrace, a municipal corpor tion corporation 7.111 Lai Mayor A h osh Kada DarcyMc Chief FinancialOfficer , 2020 (.—ATTEST: Receipt Acknowledged: 1AjteilitAd ESCROW HOLDER: Debra Thomas, City Clerk Fidelity National Title Insurance Company By: APPROVED AS TO FORM: MaryLou Adame, Escrow Officer Aleshire &Wynder, LL Dated. , 2020 By: • Adrian R. Guerra, City Attorney 01247.0020/642172.6 3 IN WITNESS WHEREOF,this Amendment has been executed by Seller and Buyer as of the dates below. BUYER: • SELLER: GREE . CROUP, INC,a California City of Grand Terrace,a municipal corpo ,lion corporation By: r rI�J /��"�' By. 61aV,ir A h sosh Kada - Darcy M'1777 Mayor Chef Financial officer 2020 TTEST: Receipt Acknowledged: ESCROW HOLDER: Debra Thomas, City Clerk Fidelity National Title Insurance Company By: APPROVED AS TO FORM: MaryLou Adam Escrow Officer Aleshire &Wynder, LLP Dated: May 11 , 2020 By: Adrian R.Guerra,City Attorney 01247.00201642172 6 3 uerra, City Attorney 01247.0020/642172.6 3