----------------------------DEED OF SALE------------------------------

 

-------------------------NUMBER THREE (4)---------------------------

 

--- In the city of San Juan, Puerto Rico, this May second (2), of two thousand
eighteen (2018)

 

.-------------------------------------

 

--------------------------------BEFORE ME-------------------------------

 

---CAROLINA V. CABRERA BOU, Attorney and Notary Public in and for the
Commonwealth of Puerto Rico, with offices at Carolina and residence in Guaynabo,
Puerto Rico.-

 

---------------------------------APPEAR-----------------------------------

 

----AS PARTY OF THE FIRST PART: MC LEARY 51, INC., a for profit corporation duly
registered in the Commonwealth of Puerto Rico, with registry number one seven
one eight seven one (171871), and main offices in Guaynabo, Puerto Rico,
represented in this act by its designated agent, MR. ROBERTO ROCA BUIGAS, of
legal age, married, businessman, and resident of San Juan, Puerto Rico, whose
faculty to appear in this act in representation of MC LEARY 51, INC., is
evidenced by a Certificate of Corporate Resolution, which was sworn and
subscribed by Roberto Roca Buigas, secretary of MC LEARY 51, INC., on May two
(2), two thousand and eighteen (2018), before notary public Carolina V. Cabrera
Bou, through affidavit number two hundred eleven (211), whom I have identified
with Driver’s License number one, seven, three, four, three, two, two (1734322)
issued by the Department of Transportation and Public Works (Departamento de
Transportación y Obras Públicas) of the Commonwealth of Puerto Rico, which
contains his photograph and signature (from hereinafter referred to as “THE
SELLER”).-------------------------------------------AS PARTY OF THE SECOND PART:
ANDALUCIA 511, LLC, a Limited Liability Company duly registered in the
Commonwealth of Puerto Rico, with register number four zero six seven three zero
(406730), who is a wholly owned subsidiary of GREEN SPIRIT INDUSTRIES, INC., a
Nevada Corporation, represented in this act by its Designated Agent, MR.
CHRISTIAN RICHARD BRIGGS, of legal age, married, entrepreneur and resident of
Carolina, Puerto Rico, whose faculty to appear in this act in representation of
ANDALUCIA 511, LLC, is evidenced by a Corporate Resolution, which was duly
signed by the Chief Executive Officer of GREEN SPIRIT INDUSTRIES, INC., sole
member of ANDALUCIA 511, LLC, MR. LESLIE BALL, on May two (2), two thousand and
eighteen (2018), whom I have identified with Driver’s License number, six, nine,
one, zero, one, eight, one (6910181) issued by the Department of Transportation
and Public Works (Departamento de Transportación y Obras Públicas) of the
Commonwealth of Puerto Rico, which contains his photograph and signature
(hereinafter referred to as “THE PURCHASER”). The appearing parties consent to
the execution of the present document without having the afore-mentioned
Corporate Resolution notarized at this particular
time.-------------------------------------------------------------

 

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---I, the Notary, attest that through their statements and my believe, I also
attest as to their age, civil status, occupation and residence. They assure me
that they have the legal capacity necessary for this act, and for the purpose
they
freely:----------------------------------------------------------------------------FIRST:
Title – That SELLER is the owner in see simple and full dominion title of the
following real property described in the Spanish Language as follow,
(hereinafter referred to as the
“PROPERTY”).---------------------------------------------------

 

---URBANA: Solar en la Sección Norte del Barrio SANTURCE, de la ciudad de San
Juan en el sitio conocido por “EL PARQUE”, con un área superficial de
cuatroscientos veintires punto treinta y seis (423.36) metros cuadrados. Es el
marcado con el número once (11) en el plano de Urbanización levantado por el
Ingeniero Don Joaquín Oliver y sus colindancias y medidas son: por el NORTE, en
dieciocho punto noventa y cinco (18.95) metros, con la calle McLeary; por el
SUR, en diecinueve punto noventa y cinco (19.95) metros, con terrenos de Don
Fernando Zegri; por el ESTE, en veintidos punto cero cinco (22.05) metros, con
la calle Gertrudis Court; y por el OESTE, en veintidos punto cero cinco (22.05)
metros, con Doña Patricia C. Burlingame. Contiene dicho solar dos edificios el
principal es de altos y bajos. Casa número mil ochocientos sesenta y cuatro
(1,864) del Bloque de la Calle McLeary, con apartamentos para viviendas a cada
piso; el otro con tres garajes en los bajos y en los altos un apartamento de
vivienda.----------------

 

----Parcel number eight thousand two hundred and twenty four (8,224) recorded at
page number two hundred and six (206), volume two hundred three (203) of
Santurce Norte, Property Registry Section I of San
Juan.---------------------------

 

---The property is identified with Municipal Revenue Collection Center (CRIM)
number 041-0410151-02-901.------

 

-------------------TITLE AND ENCUMBRANCES---------------

 

----The property was purchased by seller as per deed twenty eight (28) executed
on November twenty eight (28) of two thousand and seven (2007) before notary
public Luis Alberto Molero Rabassa, recorded at page one hundred ninety eight
(198) of volume one thousand one hundred and twenty three (1123) of Santurce
Norte, parcel number eight thousand two hundred and twenty four (8,224), of
Santurce Norte, Property Registry of San Juan I
Section.--------------------------------------------------------------------The
Property is encumbered with the following liens:.------First Mortgage in favor
of DORAL BANK is mortgage note in the principal amount of Seven Hundred and Six
thousand Five Hundred Dollars ($706,500.00) with an annual interest at seven
point nine percent (7.9%) due on March one (1) of two thousand twenty one
(2021), as per deed number ninety one (91), executed in San Juan, on March six
(6) of two thousand six (2006) before Notary Public Juan Manuel Casanova Rivera,
recorded at page one hundred and ninety eight (198) of volume one thousand one
hundred seventy seven (1177), parcel number eight thousand two hundred twenty
four (8,224) of Santurce Norte, Property Registry of San Juan I
Section.-------------------------------------------------------------------Second
Mortgage in favor of R-G PREMIER BANK OF PUERTO RICO is a mortgage note in the
principal amount of Six Hundred Fifteen Thousand Dollars ($615,000.00) with an
annual interest at twelve percent (12%), due upon presentation, as per deed
number sixty two (62) executed in San Juan, Puerto Rico, on November thirty (30)
of two thousand seven (2007), before notary public Sandra de L. Tous-Chevres,
recorded at page number two hundred seven (207) of volume one thousand one
hundred sixty six (1166), parcel number eight thousand two hundred and twenty
four (8,224) of Santurce Norte, Property Registry of San Juan I
Section.----------------------------------------------------------Presented is a
Judicial Order for the Cancellation of a Lost Mortgage Deed, case number
KCP20120182, executed in San Juan on February twelve (12), of two thousand and
two (2002) before the First Instance Court of San Juan. The Judicial Order is to
cancel the First Mortgage described above. The document was presented on April
twenty-three (23), of two thousand fourteen (2014), at turn five hundred and
seven (507), of diary one thousand and six (1106) at the Property Registry of
San Juan I Section.----------------------------------

 

2

 

 

----The second mortgage note in favor of R-G PREMIER BANK was cancelled through
deed number two (2), executed on May second (2), of two thousand eighteen
(2018), before Notary Public Luis Alberto Molero Rabassa. Said deed will be
presented at the Registry of the
Property.----------------------------------------------------------

 

---The appearing parties acknowledge having received a copy of a recent title
search dated April twelve (12) of two thousand eighteen (2018), prepared by
Magda García Cortés, which among other things includes, the registration status
of the PROPERTY, and the liens and encumbrances over the Property as of this
date.---------------I the Notary, do hereby CERTIFY that I have advised the
appearing parties (i) that the Property is described and the liens and
encumbrances are listed herein as reflected by certain title search and report
prepared by an independent third party and not by the undersigned Notary; (ii)
that this deed must be recorded in the appropriate Property Registry; (iii) of
the possibility of intervening documents affecting title being presented for
recordation prior to the execution and/or presentation of this deed in the Real
Property Registry and of the preference or seniority that said intervening liens
and/or encumbrances may gain by such prior execution or earlier presentation;
(iv) of the desirability of verifying the status of liens and encumbrances on
the property as may appear from the Property Registry on this day and of the
adverse consequence which may result from the failure to do so; (v) of the
possible existence and pendency of additional unrecorded statutory liens and
real property taxes including the statutory preferred legal mortgage in favor of
the Commonwealth of Puerto Rico); and (vi) that if any of the Mortgaged
Properties is located in a flood zone, the owner or user of such property shall
observe and comply with the requirements and provisions of the Flood Prone Zone
Regulation of the Planning Board of the Commonwealth of Puerto
Rico.-----------------------------

 

---After being so advised the appearing parties execute this deed of sale
relying in the title search report stated above and in the appearing party’s
representation and acknowledgment that the title search report is correct and
that there are no liens or encumbrances over the Real Property, other than those
stated above, if any.-------------

 

------------------------------------SALE----------------------------------------SECOND: The
SELLER and the PURCHASER express that they have agreed the sale and purchase of
the property herein described in the FIRST clause of this deed, according to the
following;-------------------------------------------------------------------------------------TERMS
AND CONDITIONS---------------------THIRD: The SELLER hereby sells, transfers and
conveys to the PURCHASER, and the PURCHASER purchases from the SELLER, the
property herein described in the FIRST paragraph of this deed with all its
rights, improvements, easements, servitude, privileges and appurtenances without
reservation or limitation whatsoever. By this deed, without the necessity of
further act or deed, the SELLER hereby delivers possession to the PURCHASER for
and in consideration of the sum of Three Hundred Fifty Thousand Dollars
($350,000.00), which is paid by the PURCHASER to the SELLER in the following
manner ----------------------------------A) The sum of Twenty Five Thousand
Dollars ($25,000.00), shall be credited to the Final Purchase Price, pursuant to
the Option to Purchase Property Agreement, signed by the appearing parties on
February twenty seven (27), two thousand and eighteen
(2018).------------------------------B) The difference of Three Hundred Twenty
five Thousand Dollars ($325,000.00) is paid by the PURCHASER to SELLER by way of
manager’s check along with the execution of this
deed.------------------------------------------------------C) SELLER will pay
the Notarial fee and the internal revenue stamps of the original deed of
sale.-----------------------

 

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----FOURTH: Eviction- SELLER agrees to indemnify PURCHASER against eviction in
the manner and to the extent required by the laws of the Commonwealth of Puerto
Rico.---------------------------------------------------------------FIFTH: The
payment of all property taxes corresponding to the PROPERTY , including those
accrued during the present tax semester, shall be prorated between SELLER and
PURCHASER in the following manner: The ones corresponding the Property up to
this date will be paid by SELLER and from this date on by the
PURCHASER.----------------------------------------------SIXTH: The execution of
this deed is equivalent to the delivery of the possession of the PROPERTY to
PURCHASER.-----------------------------------------------------------SEVENTH:
The subscribing Notary made the appearing parties the corresponding legal
warnings including but not limited to:----------------------------------------

 

---(A)The subscribing Notary hereby advised the appearing parties of the
necessity of obtaining a debt certification from Centro de Recaudaciones de
Ingresos Municipales (CRIM) prior to the execution of this deed. The appearing
parties obtained said certification. Further, the subscribing Notary hereby
advises the appearing parties of the necessity of transferring the ownership of
the property in favor of the PURCHASER at the Centro de Recaudación de Ingresos
Municipales (CRIM).----------

 

---(B) The subscribing Notary Public Hereby advises the PURCHASER of any
proprietary interest in any residential property built before the year one
thousand nine hundred seventy eighth (1978) that it is hereby duly notified that
such property may present exposure to lead from lead-based paint that may place
young children at risk of developing lead poisoning. Lead poisoning in young
children may produce permanent neurological damage, including learning
disabilities, reduced intelligence quotient, behavioral problems and impaired
memory. Lead poisoning also poses a particular risk to pregnant women. Under
section 1018 of Title X, the Residential Lead-Based Paint Hazard Reduction Act
of 1992, 42 U.S.C. Section 485d, the seller of any interest in residential
property is required to provide the buyer with any information on lead-based
paint hazards from risk assessments or inspections in the seller’s possession
and notify the buyer of any known lead-based paint hazards. A risk assessment or
inspection for possible lead-based paint hazards is recommended prior to
purchase. The PURCHASER and SELLER hereby acknowledge that the Authorizing
Notary Public has informed them of their rights under the aforementioned federal
law, and therefore release her from responsibility on that related to the
disclosure requirement on lead-based
paint.--------------------------------------------------------------(C) If the
PROPERTY shall be found to be located on an area subject to floods any owner
and/or occupant, present and future of the same is bound by law to observe and
comply with the requirements and dispositions of the Rules and Regulations
Regulating Zones Prone to Flooding, under the warning that if said dispositions
are not complied with it will result in an illegal act under Section Three (3)
of Law Number Eleven (11) of March eight (8) one thousand nine hundred eighty
eight (1988), regarding Flood Zones (23 L.P.R.A. Sec. 225 g). The appearing
parties hereby recognize and become bound to the truthful compliance of said
regulation in the event that they are applied to either
one.------------------------------------------------------------------------(D)
The obligation of SELLER of including any gain obtained from this sale in its
income tax return for the current year, for which it must and comply with the
fiscal obligation imposed by law. The subscribing Notary warned SELLER of the
convenience of consulting the tax consequences of this sale with its accountant
or equivalent professional.-----------------------------------------------(E) Of
the convenience of presenting this Deed in the Property Registry for its
recordation thereon as soon as possible, and that its failure to record the deed
does not affect third parties, for which it is recommended that the PURCHASER
obtains at its own cost the corresponding stamps which price was notified by the
subscribing
attorney.------------------------------------------------------------------(F)
I, the Notary, have warned the parties that on March nine (9) of two thousand
and nine (2009) Law Number 7 was approved, which is a special law known as “Ley
Especial Declarando Estado de Emergencia Fiscal y Establecimiento Plan Integral
de Estabilización Fiscal para Salvar el Crédito de Puerto Rico”, as amended by
Law Number 37 of July ten (10) of two thousand and nine (2009). This law created
a new subtitle “cc” to the Internal Revenue Code of Puerto Rico of 1994, Law
Number 120 of October thirty first (31), of one thousand ninety ninety four
(1994). This law establishes an additional real estate contribution (tax) of
point five hundred ninety one percent (.591%) over the contribution (taxa)
determined by the the Municipal Revenue Collection Center (CRIM). It also
authorizes to increase the appraisal value of every real estate property already
appraised by the Municipal Revenue Collection Center (CRIM), by a factor of ten
(10). The Municipal Revenue Collection Center (CRIM), has prepared a new list of
values for its registered properties to be used as a base to determine the new
contributions (taxes). Any real estate property used as the principal residence
of its owner and that its value for the Municipal Revenue Collection Center
(CRIM), is under One Hundred Fifty Thousand Dollars ($150,000.00) will be exempt
from this contributions (taxes). The new contribution (tax) creates a lien over
the property equal to the CRIM’S lien that already exists. This special
contribution (tax) will be paid to the order of Departamento de Hacienda de
Puerto Rico on September and March, until June two thousand and twelve (2012) or
until the government collects Six Hundred Ninety Million Dollars ($690,000,000),
whichever comes
first.---------------------------------------------------------------(G) The
subscribing Notary hereby advises the appearing parties of the enactment of The
Comprehensive Environmental Response Compensation and Liability Act (CERCLA)
enacted on December eleven (11), of one thousand eighty (1980), which imposed a
tax to chemical and petroleum industries in order to create a fund to clean
contaminated places. It also establishes that the Federal Government has the
authority to directly attend any leakage and/or threat of hazardous substances
which could affect public health.-----------------

 

4

 

 

----------------------------ACCEPTANCE---------------------------

 

---The appearing parties hereby accept, ratify, and confirm this deed as
drafted.-----------------------------------------Such is the deed that the
appearing parties hereby executed and to which terms they mutually bind
themselves to stand for all times under the legal responsibilities arising
therefrom according to law.------------I, the Notary, gave them the pertinent
legal warnings. That the parties executed this document before me, the Notary,
after waiving the right, to which I warned them, of having the presence of
witnesses for this execution.----------I, the Notary, do hereby certify that
this document was read by the appearing parties and that all of them signed the
same, and wrote their initials on the margin of each page of this document, to
all and everything before me, the Notary, and in my presence and as to all of
which, as well as to all other matters contained in this deed, I, the Notary, do
hereby ATTEST.---------------------------------------

 

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