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HomeMy Public PortalAboutC-20-126 - CarCom Center, LLC and California Processing Company, LLC Settlement Agreement, General Release of All Claims and Joint Escrow Instructions AND Amendment to Sale Escrow Instructions, 2403 E. 223rd St.SETTLEMENT AGREEMENT, GENERAL RELEASE OF ALL CLAIMS AND JOINT ESCROW INSTRUCTIONS This Settlement Agreement, General Release of All Claims, and Joint Escrow Instructions ("Agreement") dated f)1(YI112020 ("Agreement Date") is entered into by and between (i) Plaintiff and Cross -Defendant the City of Carson, a charter city as of January 1, 2019 ("City"), and (ii) Defendants and Cross -Complainants CarCom Center, LLC, a Nevada limited liability Ocompany ("CarCom") and California Processing Company, LLC, a California limited liability company ("California Processing") (CarCom and California Processing are jointly, "Defendants" and sometimes a "Party"). For purposes of this Agreement, City and Defendants are sometimes jointly referred to as the "Parties" or each as a "Party". RECITALS A. City is the owner in fee of real property located on the northwest corner of Alameda and 223rd Street in the City of Carson, California, with the address of 2403 E. 223rd Street (Assessor Parcel Nos. 7315-012-900 and 7315-012-804) ("Property"). B. On August 27, 2018, the City and CarCom entered into that certain Agreement for Purchase and Sale of Real Property and Joint Escrow Instructions dated August 27, 2018 ("PSA") for the acquisition of the Property by CarCom. Pursuant to the FSA, CarCom deposited One Hundred Thousand Dollars ($100,000) in escrow ("Original Deposit") which is currently being held by Peninsula Escrow ("Escrow Holder") in Escrow No. 10-016665KK ("Escrow"). C. On September 4, 2018, in connection with the purchase of the Property by CarCom (as a related party to California Processing), the City approved the issuance of one (1) cannabis operation permit to California Processing. On or about December 3, 2018, the City and California Processing entered into that certain Development Agreement with respect to the construction development of a commercial cannabis operations building on the Property ("DA"). Pursuant to statute, the DA was recorded on January 29, 2019 as Instrument No. 20190086179 in the Official Records of the Recorder's Office of Los Angeles County, State of California. D. On October 10, 2018, the City and California Processing entered into a Reimbursement Agreement pursuant to which California Processing deposited One Hundred Twenty -Five Thousand Dollars ($125,000) with the City to reimburse the City for costs related to the DA ("Reimbursement Agreement"). E. The sale of the Property pursuant to the PSA was never effectuated and Escrow did not closed, therefore, the DA never became effective. F. On June 13, 2019, the City initiated an action against Defendants, titled City of Carson v. CarCom Center, LLC, et al, in the Superior Court of Los Angeles County, case number 19STCV20812, alleging breach of contract, declaratory relief, and cancellation of instrument related to the Property ("Complaint"). G. On August 9, 2019, Defendants filed a Cross -Complaint against the City, alleging breach of contract, promissory estoppel, negligent misrepresentation, fraud, breach of the implied Page 1 of 9 Pages covenant of good faith and fair dealing, specific performance, and unjust enrichment. The original Cross -Complaint and all amendments thereto are referred to herein as the "Cross -Complaint." H. Defendants caused a Notice of Pendency of Action (Lis Pendens) to be recorded against the Property on or about September 26, 2019 as Instrument No. 201910I2926 in the Official Records of the Recorder's Office of Los Angeles County, State of California ("Lis Pendens"). The Complaint and the Cross -Complaint are jointly referred to herein as the "Action." J. Pursuant to the terms of this Agreement, the Parties wish to terminate the PSA, the DA, and the Action, to avoid the uncertainty and costs of trial, and any potential appeals therefrom, and to resolve fully and finally all disputes asserted in the Action, which could have been raised in the Action, and which may exist by and between the Parties concerning the allegations set forth in the Action. Pursuant to the terms of this Agreement, the Parties will exchange the required documents and funds through the Escrow pursuant to the New Escrow Instructions (as defined below). NOW, THEREFORE, based upon the foregoing recitals and the terms, conditions, covenants, and agreements contained herein, the Parties agree as follows: AGREEMENT In consideration of the facts, acknowledgements, agreements, general release, and promises contained in this Agreement, and for other good and valuable consideration, the receipt of which is acknowledged by each Party hereto, the Parties promise and agree as follows: 1. Recitals. The foregoing recitals are incorporated herein and made a part hereof. 2. Effective Date; Execution Process; Escrow; Default a. Effective Date. This Agreement shall be effective ("Effective Date") upon the execution of this Agreement by both Parties in accordance with the process set forth in Section 2.b. b. Execution Process. Defendants shall execute three (3) copies of this Agreement and three (3) copies of the Amendment of Sale Escrow Instructions in the form attached as Exhibit A ("New Escrow Instructions") and deliver same to the City Attorney prior to the City Council meeting scheduled for review and consideration by the City Council. If the City approves this Agreement, City shall promptly complete the Agreement Date (on page 1) of this Agreement and execute the documents previously delivered to City and deliver one (1) fully executed copy of each document to Defendants and one (I) fully executed copy of the New Escrow Instructions to the Escrow. If the City Council does not approve this Agreement, all originally executed copies shall be promptly returned to Defendants. c. Delivery. Within ten (I0) days of the Effective Date, the Parties shall deliver all documents and funds into Escrow in accordance with this Agreement and the New Escrow Instructions. d. Default. If a Party fails to comply with Section 2.c, the non -defaulting Party shall Page 2 of 9 Pages deliver written notice and demand to perform to the defaulting Party ("Demand to Perform"). If the defaulting Party fails to perform within five (5) business days from receipt of the Demand to Perform, the non defaulting Party may, in its sole discretion, elect to either (i) terminate this Agreement upon written notice to the defaulting Party; or (ii) file a motion under California Code of Civil Procedure Section 664.6 seeking the Court to order the defaulting Party to perform its obligations under this Agreement. 3. Purpose of Agreement. The purpose of this Agreement is to resolve all claims and issues asserted in the Action, all claims and issues that could have been raised in the Action, and all claims or potential claims arising from any transactions or occurrences between the City and Defendants to date. The Parties agree it is their mutual intention that neither this Agreement nor any terms hereof shall be admissible in any other or future proceedings against the City, Defendants, or any Released Party, except a proceeding to enforce this Agreement. 4. Settlement of Dispute. As of the Effective Date, the Parties agree to settle the Action as follows: 4.1 Termination of Agreements. This Agreement supersedes, replaces and terminates the PSA, the Original Escrow Instructions and the DA and all terms and provisions contained therein. Each Party hereby waives any and all ongoing rights under the terms of the PSA, the Original Escrow and the DA, and all further rights and obligations of any Party thereunder. 4.2 Defendants Oblizations. Defendants shall: (A) execute and acknowledge the Release of Lis Pendens in the form of Exhibit B ("Lis Pendens Release"); (B) cause their attorney to execute and acknowledge the Termination of Development Agreement in the form of Exhibit C ("DDA Release"); and (C) execute (and attorney executes) a Dismissal with Prejudice of the Cross -Complaint. All documents shall be delivered to Escrow Holder. 4.3 City Obligations. The City shall: (A) pay to Defendants the total sum of Three Hundred Thousand Dollars ($300,000) ("Settlement Sum") consisting of (i) a cash payment of Two Hundred Thousand Dollars ($200,000) by the City into Escrow; and (ii) release of the Original Deposit to Defendants; (B) execute (and attorney executes) a Dismissal with Prejudice of the Complaint; and (C) execute and acknowledge the DDA Release. All documents shall be delivered to Escrow Holder. 4.4 Escrow. The Parties shall deliver all the funds and documents as specified in Sections 2, 4.2 and 4.3 of this Agreement ("Funds and Documents") to Escrow in accordance with the New Escrow Instructions. (i) Close of Escrow. Escrow shall close ("Closing") as soon as possible after (A) Escrow holds all the Funds and Documents; and (B) Fidelity National Title Insurance Company ("Fidelity") has committed to record the DDA Release and the Lis Pendens Release and concurrently issue the proforma title binder ("Proforma Binder") in the form approved by City. Upon Closing, Escrow Holder shall deliver to Defendants: (i) the Settlement Sum pursuant to separate wiring instructions provided by Defendants; (ii) the Complaint Page 3 of 9 Pages Dismissal; and (iii) all other documents, if any, previously delivered by Defendants into Escrow. Upon Closing, Escrow Holder shall deliver to City: (i) the Cross Complaint Dismissal, and (ii) all other documents previously delivered by City into Escrow, including, but not limited to, the Grant Deed. (ii) Fees. Escrow fees shall be One Thousand Dollars ($1,000) shall be paid equally by each Party. Any fees payable to Fidelity for the Proforma Binder shall be the sole responsibility of City. 5. Mutual General Release ("Release"). 5.1 Release by City. As of the Closing Date, City fully and irrevocably releases and forever discharges Defendants, and their current and former employees, officials, agents, members, shareholders, directors, officers, attorneys and representatives, and any of them ("Defendant Releasees"), of and from any and all manner of action or actions, cause or causes of action, in law or in equity, suits, debts, liens, contracts, agreements, promises, liability, claims, demands, damages, loss, costs or expenses, of any nature whatsoever, known or unknown, fixed or contingent ("City Claims"), the City now has or may hereafter have by reason of any matter, cause, or thing whatsoever occurring prior to the date of execution of this Agreement including, without limiting the generality of the foregoing, any City Claims constituting, arising out of, based upon, or relating to the allegations set forth in the Complaint and Cross -Complaint, as well as any matters, causes, or things whatsoever that were, or have been, or could in any way have been, alleged in the pleadings filed in the Action. 5.2 Release by Defendants. As of the Closing Date, Defendants fully and irrevocably release and forever discharge the City, and its current and former employees, officials, agents, members, shareholders, directors, officers, attorneys and representatives, and any of them ("City Releasees"), of and from any and all manner of action or actions, cause or causes of action, in law or in equity, suits, debts, liens, contracts, agreements, promises, liability, claims, demands, damages, loss, costs or expenses, of any nature whatsoever, known or unknown, fixed or contingent ("Defendant Claims"), Defendants have or may hereafter have by reason of any matter, cause, or thing whatsoever occurring prior to the date of execution of this Agreement including, without Iimiting the generality of the foregoing, any Defendant Claims constituting, arising out of, based upon, or relating to the allegations set forth in the Complaint and Cross -Complaint, as well as any matters, causes, or things whatsoever that were, or have been, or could in any way have been, alleged in the pleadings filed in the Action. 5.3 Release of Unknown Claims. As set forth in this Section 5, the Releases are a release of ALL claims, demands, causes of action, obligations, damages, and liabilities of any nature whatsoever that are described in the Release and are intended to encompass all known and unknown, foreseen and unforeseen claims that the Parties may have as a result of the Action, except for any claims that may arise from the terms of this Agreement. 5.4 Discovery of Different or Additional Facts. The Parties acknowledge that they Page 4 of 9 Pages may hereafter discover facts different from or in addition to those that each now knows or believes to be true with respect to the claims, demands, causes of action, obligations, damages, and liabilities of any nature whatsoever that are the subject of the Release set forth in Section 5 of this Agreement, and expressly agree to assume the risk of the possible discovery of additional or different facts, and the Parties agree that this Agreement shall be and remain effective in all respects regardless of such additional or different facts. 5.5 Waiver of Civil Code Section 1542. Further, the Parties acknowledge that each has been informed of the provisions of California Civil Code Section 1542, and expressly agree to waive and relinquish all rights and benefits each may have under California Civil Code Section 1542. That section reads as follows: A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party. 6. Attorneys' Fees and Costs. Each Party agrees to bear their own attorneys' fees and costs in connection with the Action and the negotiation and execution of this Agreement. 7. Non -Admission of Liability. The Parties acknowledge and agree that this Agreement is a settlement of disputed claims. Neither the fact that the Parties have settled nor the terms of this Agreement shall be construed in any manner as an admission of any liability by the Parties and/or the Parties' Releasees, including the Parties' attorneys, all of whom have consistently taken the position that they have no liability whatsoever. 8. Renresentation of Authority. The individuals executing this Agreement on behalf of the Parties represent and warrant that they have full standing, power, and authority to grant releases and settle the Claims as contained in this Agreement, and do so on behalf of the Parties, that the Parties shall, therefore, be bound by the terms of this Agreement. 9. No Assignment of CIaims. 9.1 Com. City warrants that it has made no assignment or transfer, and will make no assignment or transfer, of any claim, cause of action, right of action or any right of any kind whatsoever, embodied in any of the City Claims and allegations referred to herein, and that no other person or entity of any kind had or has any interest in any of the City Claims. 9.2 Defendants. Defendants, jointly and severally, warrant that they have made no assignment or transfer, and will make no assignment or transfer, of any claim, cause of action, right of action or any right of any kind whatsoever, embodied in any of the Defendant Claims and allegations referred to herein, and that no other person or entity of any kind had or has any interest in any of the Defendant Claims. 10. Successors and Assigns. This Agreement, and all the terms and provisions hereof, Page 5 of 9 Pages shall be binding upon and shall inure to the benefit of the Parties and their respective legal representatives, successors and assigns. 11. Knowing and Voluntary. This Agreement is an important legal document and in all respects has been voluntarily and knowingly executed by the Parties. The Parties specifically represent that prior to signing this Agreement they have been provided a reasonable period of time within which to consider whether to accept this Agreement. The Parties further represent that they have each carefully read and fully understand all of the provisions of this Agreement, and that they are voluntarily, knowingly, and without coercion entering into this Agreement based upon their own judgment. 12. Assistance of Counsel. The Parties each specifically represent that they have, prior to executing this Agreement, consulted to their satisfaction with and received independent advice from their respective counsel concerning the terms and conditions of this Agreement. 13. Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be considered an original but all of which shall constitute one agreement. 14. Severability. Should any portion, word, clause, phrase, sentence or Section of this Agreement be declared void or unenforceable, such portion shall be considered independent and severable from the remainder, the validity of which shall remain unaffected. 15. Ambiguity. The Parties acknowledge that this Agreement was jointly prepared by them, by and through their respective legal counsel. This Agreement shall be construed according to its fair meaning as prepared by both of the Parties, and any uncertainty or ambiguity existing herein shall not be interpreted against either of the Parties. 16. Waiver. Failure to insist on compliance with any term, covenant, or condition contained in this Agreement shall not be deemed a waiver of that term, covenant, or condition, nor shall any waiver or relinquishment of any right or power contained in this Agreement at any one time or more times be deemed a waiver or relinquishment of any right or power at any other time_ 17. Retention of Jurisdiction. Pursuant to California Code of Civil Procedure section 664.6, the Parties stipulate and agree that the Superior Court of Los Angeles County shall retain jurisdiction over the Parties and the Action, as to any action to enforce, invalidate, or interpret any provision of this Agreement. The Parties agree to file a Stipulation to this effect before dismissal of the Action. 18. Enforcement Costs. Should any legal action be required to enforce the terms of this Agreement, the prevailing party shall be entitled to recover their actual attorneys' fees, costs, and expenses, which are reasonably incurred, from the non -prevailing party, in addition to any other relief to which that party may be entitled. Such fees and costs shall not be limited by any statutory guidelines. 19. Governing Law; Venue. This Agreement is made and entered into in the State of California, and shall in all respects be interpreted, enforced and governed under the laws of said State without giving effect to conflicts of laws principles. Any action to enforce, invalidate, or Page 6 of 9 Pages interpret any provision of this Agreement shall be brought in Superior Court of Los Angeles County. 20. Duty of Cooperation. Upon request of a Party, the other Party shall reasonably cooperate to effect the intent of this Agreement which may include executing documents as required by a title insurance company or the Escrow. 21. Notice. Any notice which either Party may desire to give to the other Party or to the Escrow Holder must be in writing and may be given (i) by personal delivery which will be deemed received the following day or (ii) by mailing the same by registered or certified mail, return receipt requested which will be deemed delivered three (3) days after depositing same in the mail, addressed to the party to whom the notice is directed as set forth below, or such other address and to such other persons as the Parties may hereafter designate: To City: City of Carson 701 E. Carson Street Carson, CA 90745 Attention: City Manager With a Copy to: Aleshire & Wynder, LLP 18881 Von Karman Avenue, Suite 1700 Irvine, CA 92612 Attention: Sunny Soltani, Esq. & Alison Flowers, Esq. To Defendants: CarCom Center, LLC 4831 Louise Ave Encino, CA 91316 California Processing Company, LLC 4831 Louise Ave Encino, CA 91316 With a Copy to: Sklar Kirsch, LLP I880 Century Park East, Suite 300 Los Angeles, California 90067 Attn: Ian S. Landsberg If to Escrow Holder: Peninsula Escrow 4007 Miraleste Plaza Rancho Palos Verdes CA 90275 Attn: Kevin Kraft, Escrow Officer Escrow No. 10 -106665 -KK 22. Entire Agreement. This Agreement constitutes the entire agreement between the Parties who have executed it and supersedes any and all other agreements, understandings, negotiations, or discussions, either oral or in writing, express or implied between the Parties to this Agreement. The Parties to this Agreement each acknowledge that no representations, inducements, Page 7 of 9 Pages promises, agreements, or warranties, oral or otherwise, have been made by them, or anyone acting on their behalf, which are not embodied in this Agreement, and that they have not executed this Agreement in reliance on any such representation, inducement, promise, agreement or warranty. No representation, inducement, promise, agreement or warranty not contained in this Agreement including, but not limited to, any purported supplements, modifications, waivers, or terminations of this Agreement shall be valid or binding, unless executed in writing by all of the Parties to this Agreement. 23. Execution in Counterparts. This Agreement may be executed in several counterparts, and all so executed shall constitute one agreement binding on the Parties, notwithstanding that the Parties are not signatories to the original or the same counterpart. 24. Exhibits. Exhibit A, B & C are attached hereto and incorporated herein by reference. [SIGNATURE PAGE FOLLOWS] Page 8 of [) Pages IN WITNESS WHEREOF, the undersigned execute this Settlement Agreement as of the dates specified below. DEFENDANTS: CARCOM CENTER, LLC a Nevada limit 'ability company By: Todd Parkin Managing Member California Processing Company, LLC, a California l' ' ed liability company By: Todd Parkin, Managing Member APPROVED AS TO FORM: SKL CITY: Donesia L. Gause, City Clerk APPROVED AS TO FORM: ALESHIRE & WYNDER, LLP By: 0/. Sunny K. Soltani, City Attorney Page 9 of 9 Pages EXHIBIT A NEW ESCROW INSTRUCTIONS Peninsula Escrow 4007 Miraleste Plaza BECAUSE YOU DESERVE THE BEST Rancho Palos Verdes CA 90275 Phone No. 310.514.1451 ext 2650 Direct Fax No. 310,356.4275 kevin oen�_com PENINSULA ESCROW LICENSED BY THE DEPARTMENT OF BUSINESS OVERSIGHT OF THE STATE OF CALIFORNIA, LICENSE NUMBER 863-1290 Kevin Kraft Escrow No. 10 -16665 -KK Sr, Certified Escrow Officer/Manager , 2020 AMENDMENT TO SALE ESCROW INSTRUCTIONS These instructions amend those certain Sale Escrow Instructions dated March 14, 2019 pursuant to the Agreement for Purchase and Sale of Real Property and Joint Escrow Instructions August 27, 2018, Buyer and Seller have settled the dispute regarding the sale of the property pursuant to that certain Settlement Agreement dated , 2020 ("Settlement Agreement"). A copy of the Settlement Agreement has been provided to Escrow Holder As between Buyer and Seller, if the terms of these Instructions conflict with the Settlement Agreement, the Settlement Agreement shall control. In the event of any conflict. Escrow Holder shall have the right to require mutual executed instructions to clarify Escrow Holder's duties. All terms not defined in these Instructions shall have the same meaning as set forth in the Settlement Agreement_ Escrow Holder acknowledges that the sum of $100,000 is currently held in the escrow ("Original Deposit"). Concurrently with the delivery of these Instructions, each party shall deliver the following: • Buyer's Deliveries. Buyer shall deliver to Escrow Holder: (A) an executed and acknowledged Release of Lis Pendens; (B) the Termination of Development Agreement (DDA Release) executed and acknowledged by California Processing Company, LLC, a California limited liability company ("CPC"); and (C) an originally executed (also executed by their attorney) Dismissal with Prejudice of the Cross -Complaint. + Seller's Deliveries.. Seller shall deliver to Escrow Holder: (A) the sum of Two Hundred Thousand Five Hundred Dollars ($200,500); (B) an originally executed (also executed by their attorney) Dismissal with Prejudice for the Complaint; and (C) an executed and acknowledged DDA Release, Upon receipt of all of the foregoing documents and funds, Escrow Holder Is directed to assemble a full counterpart executed copy of the DDA Release and deliver same and the Lis Pendens Release to Fidelity National Title Insurance Company ("Fidelity") which shall hold same until Escrow Holder notifies Fidelity that # is in a position to close. Prior to closing, Escrow Holder shall confirm with Fidelity that it has committed to record both the DDA Release and the Lis Pendens Release and concurrently issue the proforma title binder for the Property to Seller ("Proforma Binder") in the form approved by Seller. Any cost for the Proforma Binder will be the sole cost and expense of Seller which shall be paid by Seller directly to Fidelity. Upon receipt of confirmation from Fidelity, Escrow Holder shall close this Escrow and is directed as follows: 1. Deliver to or for Buyer as follows: (i) The sum of Two Hundred Ninety -Nine Thousand Five Hundred Dollars ($299,500) shall be delivered to Buyer pursuant to separate wiring instructions provided by Buyer,- Page uyer; Page I of 2 Pages (ii) Deliver the original Dismissal with Prejudice of Complaint to Buyer's attorney; and (iii) Return to Buyer all (if any) original documents executed by Buyer as part of the original sale agreement. 2. Deliver to or for Seller as follows: (a) Direct Fidelity to immediately record the DDA Release and Dismissal of Lis Pendens and issue the Proforma Policy; (b) Deliver the original Dismissal with Prejudice of Cross -Complaint to Seller's attorney; and (c) Deliver to Seller all originally executed documents which were previously delivered to Escrow Holder as part of the original sale. 3. Escrow Holder shall retain the sum of One Thousand Dollars ($1,000) for its escrow fees. BUYER: SELLER: In CARCOM CENTER, LLC, CITY OF C N, ' a Nevada limited liability company a charter sof Ja , 201 By: Todd Parkin Sh ersLOTy Managing Member 202 CPC is not a party to the Escrow but consents to the delivery and recordation of the DDA ATTEST - Release per these Instruction: California Processing Company, LLC, Donesia L. Gause, City Clerk a California limited liability company APPROVED AS TO FORM: By: Todd Parkin, ALESHIRE & WYNDER, LLP Managing Member APPROVED AS TO FORM: By: Sunny K. Soltani, SKLAR KIRSH, LLP City Attorney By: Ian S. Landsberg Defendants' Attorney Page 2 of 2 Pages EXHIBIT B LIS PENDENS RELEASE FREE RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Carson 701 E. Carson Street Carson, CA 90745 Attn: City Clerk APN 7315-012-900 & 7315-012-804 Space Above this Line for Recorder's Use Only Exempt from recording fees Gov. Code 6133 NOTICE OF WITHDRAWAL AND RELEASE OF LIS PENDENS Page I of 3 Pages SKLAR KIRSH, LLP Ian S. Landsberg (SBN 137431) ilandsberg@sklarkirsh.com Molly K. Madden (SBN 281483) mmadden@sklarkirsh.com 1880 Century Park East, Suite 300 Los Angeles, California 90067 Telephone: (310) 845-6416 Facsimile: (310) 929-4469 Attorneys for Defendants and Cross - Complainants CarCom Center, LLC, and California Processing Company, LLC SUPERIOR COURT OF THE STATE OF CALIFORNIA COUNTY OF LOS ANGELES, CENTRAL DISTRICT CITY OF CARSON, a California charter city as of January 1, 2019, Plaintiff, V. CARCOM CENTER, LLC, aka the Carson Commercial Center, a Nevada Limited Liability Company; CALIFORNIA PROCESSING COMPANY, LLC, a California Limited Liability Company; and DOES 1 through 100, Defendants. Case No. 19STCV20812 WITHDRAWAL & RELEASE OF NOTICE OF PENDENCY OF ACTION (LIS PENDENS) (CCP §405.50) TO ALL PARTIES AND THEIR COUNSEL OF RECORD: PLEASE TAKE NOTICE that Defendants and Cross -Complainants CarCom Center, LLC and California Processing Company, LLC hereby release and withdraw the Notice of Pendency of Action (Lis Pendens) regarding the cross -action filed on August 9, 2019 in the Superior Court of California, County of Los Angeles, Case No. 19STCV20812 against Plaintiff and Cross -Defendant City of Carson, a California charter city as of January 1, 2019 that was recorded with the County Recorder of the County of Los Angeles on September 26, 2019 as Instrument No. 20191012926 so Page 2 of 3 Pages that that it does not (1) constitute constructive or actual notice of any of the matters contained, claimed, alleged, or contended in it or ol-any matters relating to this lawsuit or (2) create any duty of inquiry in any person dealing with the affected property described in the notice after the date of recordation of this notice of withdrawal. The above-mentioned lawsuit involved a claim to the following real property Iocated in the City of Carson, County of Los Angeles, State of California and described as follows: The real property commonly known as and located on the northwest corner of Alameda and 2231d Street in the City of Carson (APNs: 7315-012-900, 7315-012-804) and legally described as: That portion of Lot 6 in Block "C" of the Subdivison of a part of the Rancho San Pedro, (also known as Dominguez Colony), in the County of Los Angeles, State of California, as shown on Maps recorded in Book 1, Pages 601 and 602, and Book 32, Pages 97 and 98 of Miscellaneous Records, in the Office of the County Recorder of said County, bounded as follows: On the North by the Southerly line of that certain parcel of land described in decd to the State of California, as recorded in Book D748, Page 676, Official Records, in the Office of the County Recorder of said County, (now known as the San Diego Freeway); on the South bounded Southerly by Northerly line of 100' strip of land described per (Parcel 12-13:) in Decree of Condemnation, recorded October 5, 1973, Instrument No. 4331, Official Records; on the West by a line which is at right angles to said last mentioned centerline and which passes through a point in said centerline, distant Easterly hereon, 1607.85 feet from the Southerly prolongation of the Westerly line of Lot 5 of said Block "C," and on East by the Westerly line of that certain 250 foot strip of land described first in deed to the Pacific Electric Land Company recorded as Instrument No. 1314 on January 24, 1924, in Book 2683, Page 358, Official Records. DATED- , 202 SKLAR KIRSH, LLP Ian S. Landsberg Molly K. Madden Attorneys for Defendants and Cross -Complainants CarCom Center, LLC, and California Processing Company, LLC Page 3 of 3 Pages A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document. STATE OF CALIFORNIA ) ss. DEVELOPER OF ) On _ , 202_ before me, , a notary public, personally appeared who 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 instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing Section is true and correct. WITNESS my hand and official seal. Notary Public 0CrAX Page 4 or I Pages EXHIBIT C TERMINATION OF DDA FREE RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Carson 701 E. Carson Street Carson, CA 90745 Attn: City Clerk APN 7315-012-900 & 7315-012-804 Space Above this line for Recorder's Use Only Exempt from recording fees Gov. Code 6133 CANCELLATION OF DEVELOPMENT AGREEMENT This CANCELLATION OF DEVELOPMENT AGREEMENT ("Cancellation") is executed by the CITY OF CARSON, a charter city as of January 1, 2019 ("City") and CALIFORNIA PROCESSING COMPANY, LLC, a California limited liability company ("Developer"). RECITALS A. City and Developer entered into that certain DEVELOPMENT AGREEMENT executed by the City as of December 3, 2018 and recorded on January 29, 2019 as Instrument No. 20190086179 in the Official Records of Los Angeles County, State of California ("Development Agreement"). B. The Development Agreement affected that certain real property legally described on Exhibit A attached hereto and incorporated herein by reference ("Property"). C. Pursuant to Sections 1.35 and 3.3, the Development Agreement is not effective unless and until Developer acquires either a legal or equitable interest in the Property. D. Developer does not own and will not be acquiring a legal or equitable interest in the Property. E. Since the Development Agreement will never be effective, the parties are executing this Cancellation to formally confirm cancellation of the Development Agreement and to remove the Development Agreement from record title of the Property. ACKNOWLEDGEMENT OF CANCELLATION City and Developer hereby each acknowledge and confirm that the Development Agreement is cancelled and of no force or effect and Developer has no further duties or obligations thereunder. [SIGNATURES ON FOLLOWING PAGE] IN WITNESS WHEREOF, the parties have executed this Cancellation as of the dates indicated below. DEVELOPER: SELLER: CALIFORNIA PROCESSING COMPANY, LLC, a California limited liability company Todd Parkin, Managing Member APPROVED AS TO FORM: SKLAR KIRSH, LLP By: Ian S. Landsberg Attorney CITY OF CARSON, a charter city as of January 1, 2019 Sharon Landers, City Manager , 202_ ATTEST: Donesia L. Gause, City Clerk APPROVED AS TO FORM: ALESHIRE & WYNDER, LLP By: Sunny K. Soltani, City Attorney EXHIBIT A LEGAL DESCRIPTION OF SITE The real property located in the City of Carson, County of Los Angeles, State of California described as follows: (APNs: 7315-012900, 7315-012-804) That portion of Lot 6 in Block "C" of the Subdivison of a part of the Rancho San Pedro, (also known as Dominguez Colony), in the County of Los Angeles, State of California, as shown on Maps recorded in Book 1, Pages 601 and 602, and Book 32, Pages 97 and 98 of Miscellaneous Records, in the Office of the County Recorder of said County, bounded as follows: On the North by the Southerly line of that certain parcel of land described in deed to the State of California, as recorded in Book D748, Page 676, Official Records, in the Office of the County Recorder of said County, (now known as the San Diego Freeway); on the South bounded Southerly by Northerly line of 100' strip of land described per (Parcel 12-13:) in Decree of Condemnation, recorded October 5, 1973, Instrument No. 4331, Official Records; on the West by a line which is at right angles to said last mentioned centerline and which passes through a point in said centerline, distant Easterly hereon, 1607.85 feet from the Southerly prolongation of the Westerly line of Lot 5 of said Block "C," and on East by the Westerly line of that certain 250 foot strip -of land described first in deed to the Pacific Electric Land Company recorded as Instrument No. 1314 on January 24, 1924, in Book 2683, Page 358, Official Records. A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document. STATE OF CALIFORNIA ) ss. DEVELOPER OF ) On , 202` before me, , a notary public, personally appeared who 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 instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing Section is true and correct. WITNESS my hand and official seal. Notary Public SEAL: A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy or validity of that document. STATE OF CALIFORNIA I�f�i7�i�l:Z�7� On , 202_ before me, , a notary public, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) islare 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 instrument. I certify under PENALTY OF PERJURY under the laws of the Slate of California that the foregoing Sectionis true and correct. WITNESS my hand and official seal, Notary Public SEAL: is Peninsula Escrow BECAUSE You DESERVE THE BEST 4007 Miraleste Plaza Rancho Palos Verdes CA 90275 Phone No. 310.514.1451 ext 2650 Direct Fax No. 310.356.4275 kevin(a') pen escrow. com PENINSULA ESCROW LICENSED BY THE DEPARTMENT OF BUSINESS OVERSIGHT OF THE STATE OF CALIFORNIA, LICENSE NUMBER 863-1290 Kevin Kraft Escrow No, 10 -16665 -KK Sr. Certified Escrow Officer/Manager 2020 AMENDMENT TO SALE ESCROW INSTRUCTIONS These instructions amend those certain Sale Escrow Instructions dated March 14, 2019 pursuant to the Agreement for Purchase and Sale of Real Property and Joint Escrow Instructions August 27, 2018. Buyer and Seller have settled the dispute regarding the sale of the property pursuant to that certain Settlement Agreement dated NWmbw L, 2020 CSettlement Agreement"). A copy of the Settlement Agreement has been provided to Escrow Holder. As between Buyer and Seller, if the terms of these Instructions conflict with the Settlement Agreement, the Settlement Agreement shall control. In the event of any conflict, Escrow Holder shall have the right to require mutual executed instructions to clarify Escrow Holder's duties. All terms not defined in these Instructions shall have the same meaning as set forth in the Settlement Agreement. Escrow Holder acknowledges that the sum of $100,000 is currently held in the escrow ("Original Deposit"). Concurrently with the delivery of these Instructions, each party shall deliver the following: • Buyer's Deliveries. Buyer shall deliver to Escrow Holder: (A) an executed and acknowledged Release of Lis Pendens; (B) the Termination of Development Agreement (DDA Release) executed and acknowledged by California Processing Company, LLC, a California limited liability company ("CPC"); and (C) an originally executed (also executed by their attorney) Dismissal with Prejudice of the Cross -Complaint. Seller's Deliveries.. Seller shall deliver to Escrow Holder: (A) the sum of Two Hundred Thousand Five Hundred Dollars ($200,500); (B) an originally executed (also executed by their attorney) Dismissal with Prejudice for the Complaint; and (C) an executed and acknowledged DDA Release. Upon receipt of all of the foregoing documents and funds, Escrow Holder is directed to assemble a full counterpart executed copy of the DDA Release and deliver same and the Lis Pendens Release to Fidelity National Title Insurance Company ("Fidelity") which shall hold same until Escrow Holder notifies Fidelity that it is in a position to close. Prior to closing, Escrow Halder shall confirm with Fidelity that it has committed to record both the DDA Release and the Lis Pendens Release and concurrently issue the proforma title binder for the Property to Seller ("Proforma Binder") in the form approved by Seller. Any cost for the Proforma Binder will be the sole cost and expense of Seller which shall be paid by Seller directly to Fidelity. Upon receipt of confirmation from Fidelity, Escrow Holder shall close this Escrow and is directed as follows: 1. Deliver to or for Buyer as follows: (i) The sum of Two Hundred Ninety -Nine Thousand Five Hundred Dollars ($299,500) shall be delivered to Buyer pursuant to separate wiring instructions provided by Buyer; (ii) Deliver the original Dismissal with Prejudice of Complaint to Buyer's attorney; and (iii) Return to Buyer all (if any) original documents executed by Buyer as part of the original sale agreement. 2. Deliver to or for Seller as follows: (a) Direct Fidelity to immediately record the DDA Release and Dismissal of Lis Pendens and issue the Proforma Policy; (b) Deliver the original Dismissal with Prejudice of Cross -Complaint to Seller's attorney, and (c) Deliver to Seller all originally executed documents which were previously delivered to Escrow Holder as part of the original sale. 3. Escrow Holder shall retain the sum of One Thousand Dollars ($1,000) for its escrow fees. CARCOM CENTER, LLC, a Nevada limited liability company By:f Todd Parkin Managing Member CPC is not a party to the Escrow but consents to the delivery and recordation of the DDA Release per these Instruction: California Processing Company, LLC, a California limliability company By; Todd Parkin, Managing Member APPROVED AS TO FORM; SKLAR "SH, LLP S. Landsberg :ndants' Attoi SELLER: CITY OF CARW a charter citYAS of By: ar Landers, Ci n ger 20z�) 1/1 - 't_ P11,_(,'� Ie1, bri sia L. G6usiY, City Cie APPROVED AS TO FORM; ALESHIRE & WYNDER, LLP By 1 - -QhQ Sunny K. Soltani, City Attorney