Document:

exv10w6

Exhibit 10.6

PURCHASE AND SALE AGREEMENT

AND JOINT ESCROW INSTRUCTIONS

dated as of

January 12, 2010

by and between

CONEXANT SYSTEMS, INC.,

a Delaware corporation

(“Seller”)

and

CITY VENTURES, LLC,

a Delaware limited liability company

(“Buyer”)

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	 
	1.	 	Agreement to Purchase/Sell	 	 	1	 
	2.	 	Purchase Price; Independent Consideration; Deposit	 	 	2	 
	3.	 	Contingencies	 	 	3	 
	 

	 	(a)
	 	Buyer Contingencies
	 	 	3	 
	 

	 	(b)
	 	Seller Contingencies
	 	 	7	 
	4.	 	Escrow	 	 	8	 
	 

	 	(a)
	 	Escrow Holder
	 	 	8	 
	 

	 	(b)
	 	Opening and Close of Escrow
	 	 	8	 
	 

	 	(c)
	 	Escrow Instructions
	 	 	8	 
	 

	 	(d)
	 	Seller Deposits into Escrow
	 	 	8	 
	 

	 	(e)
	 	Buyer Deposits into Escrow
	 	 	9	 
	 

	 	(f)
	 	Delivery of Leases to Buyer Outside of Escrow
	 	 	9	 
	 

	 	(g)
	 	Authorization to Close Escrow
	 	 	9	 
	 

	 	(h)
	 	Interpleader
	 	 	10	 
	 

	 	(i)
	 	U.S. Treasury Regulations
	 	 	10	 
	 

	 	(j)
	 	Exchange Cooperation
	 	 	11	 
	5.	 	Closing Costs	 	 	11	 
	6.	 	Prorations and Adjustments	 	 	12	 
	7.	 	Possession; Jazz Lease	 	 	14	 
	 

	 	(a)
	 	Possession
	 	 	14	 
	 

	 	(b)
	 	Deed
	 	 	14	 
	 

	 	(c)
	 	Jazz Lease
	 	 	14	 
	8.	 	Representations, Warranties and Covenants of Buyer	 	 	14	 
	9.	 	Representations, Warranties and Covenants of Seller	 	 	17	 
	10.	 	Right to Enter Property; Contact with City	 	 	19	 
	 

	 	(a)
	 	Right to Enter
	 	 	19	 
	 

	 	(b)
	 	Contact with City
	 	 	20	 
	11.	 	Destruction of the Improvements	 	 	20	 
	12.	 	Loss by Condemnation	 	 	21	 
	13.	 	Default of Buyer	 	 	21	 
	14.	 	Broker’s Commission	 	 	22	 

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TABLE OF CONTENTS
(continued)

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	 
	15.	 	Seller Covenants	 	 	22	 
	16.	 	Notices	 	 	23	 
	17.	 	Lease of Space Within Half Dome Building	 	 	25	 
	18.	 	El Capitan Auditorium	 	 	27	 
	19.	 	Electrical Pass-Throughs	 	 	27	 
	20.	 	Miscellaneous Provisions	 	 	29	 
	 

	 	(a)
	 	Incorporation of Prior Agreements
	 	 	29	 
	 

	 	(b)
	 	Buyer’s Right to Assign
	 	 	29	 
	 

	 	(c)
	 	Attorneys’ Fees
	 	 	29	 
	 

	 	(d)
	 	Time is of the Essence
	 	 	29	 
	 

	 	(e)
	 	Successors and Assigns
	 	 	29	 
	 

	 	(f)
	 	California Law; Choice of Forum
	 	 	30	 
	 

	 	(g)
	 	Counterparts
	 	 	30	 
	 

	 	(h)
	 	Interpretation
	 	 	30	 
	 

	 	(i)
	 	Construction
	 	 	30	 
	 

	 	(j)
	 	No Recordation
	 	 	30	 
	 

	 	(k)
	 	Business Days
	 	 	30	 
	 

	 	(l)
	 	Calculation of Days
	 	 	30	 
	 

	 	(m)
	 	Due Execution
	 	 	30	 
	 

	 	(n)
	 	Condition Precedent to Filing of Specific Performance Action Against Seller	 	 	31	 
	 

	 	(o)
	 	Joint and Several Obligations
	 	 	31	 
	EXHIBIT A	 	LEGAL DESCRIPTION	 	 	 	 
	EXHIBIT B	 	TENANT LEASES	 	 	 	 
	EXHIBIT C	 	PROPERTY DOCUMENTS	 	 	 	 
	EXHIBIT D-1	 	FORM OF TENANT ESTOPPEL CERTIFICATE	 	 	 	 
	EXHIBIT D-2	 	FORM OF JAZZ ESTOPPEL CERTIFICATE	 	 	 	 
	EXHIBIT E	 	FORM OF GRANT DEED	 	 	 	 
	EXHIBIT F	 	FORM OF NON-FOREIGN AFFIDAVIT	 	 	 	 
	EXHIBIT G	 	FORM OF NOTICE TO TENANTS	 	 	 	 
	EXHIBIT H-1	 	LOCATION OF HALF DOME PREMISES	 	 	 	 
	EXHIBIT H-2	 	FORM OF LEASE FOR HALF DOME PREMISES	 	 	 	 
	EXHIBIT I	 	FORM OF BILL OF SALE	 	 	 	 
	EXHIBIT J	 	FORM OF ASSIGNMENT OF LEASES	 	 	 	 
	EXHIBIT K	 	FORM OF GENERAL ASSIGNMENT	 	 	 	 

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PURCHASE AND SALE AGREEMENT

AND JOINT ESCROW INSTRUCTIONS

     THIS PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS (“Agreement”) is dated as of
January 12, 2010, by and between CONEXANT SYSTEMS, INC., a Delaware corporation (“Seller”), and
CITY VENTURES, LLC, a Delaware limited liability company (“Buyer”).

1. Agreement to Purchase/Sell.

     Seller hereby agrees to sell, convey and assign to Buyer, and Buyer agrees to buy and accept
from Seller, under the terms and conditions and for the purchase price hereinafter set forth, that
certain real property located in the City of Newport Beach (the “City”), County of Orange (the
“County”), State of California, and more particularly described in Exhibit A attached hereto (the
“Land”) together with any and all rights, privileges and easements appurtenant thereto owned by
Seller including the following (hereinafter collectively referred to as the “Property”):

     (a) Seller’s fee interest in the Land and all of the improvements (the “Improvements”) located
thereon. The Improvements consist of a manufacturing building consisting of approximately 311,452
square feet and an administrative office building consisting of approximately 126,675 square feet,
and related on-site improvements.

     (b) Seller’s entire interest as landlord under certain leases and license agreements
(collectively, the “Leases”), together with all security and other deposits made thereunder
(collectively, the “Security Deposits”), which Leases exist and are in effect with respect to the
Improvements or other portions of the Property. The Leases are identified in Exhibit B attached
hereto and incorporated herein by this reference (the “Rent Schedule”).

     (c) Seller’s right, title and interest in and to any and all tangible personal property owned
by Seller and located on, at or exclusively used in connection with the Land and Improvements,
including, without limitation, any and all equipment, furniture, carpeting, draperies and curtains,
tools and supplies but excluding the personal property listed in Schedule 1(c) attached hereto
(collectively, the “Excluded Property”), together with any replacements thereof or additions
thereto made by Seller following Opening of Escrow (the property described in this subparagraph
(c), other than the Excluded Property, is hereinafter referred to collectively as the “Personal
Property”).

     (d) Seller’s right, title and interest in and to any intangible property exclusively used in
connection with the Land and Improvements, including, without limitation, (i) all construction,
engineering, consulting, architectural and other similar drawings, plans, analyses and
specifications relating to the Land (subject to the rights of third parties in and to such work
product), (ii) all existing certificates of occupancy, guaranties and warranties (express or
implied), entitlements, permits, licenses, water rights and development rights, and (iii) any
applications for entitlements, permits, licenses and the like made by or on behalf of Seller
with respect to the Land and Improvements and any fees paid in connection therewith (the property

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described in this subparagraph (d) of Section 1 being herein referred to collectively as the
“Intangibles”).

2. Purchase Price; Independent Consideration; Deposit.

     (a) The purchase price to be paid by Buyer at the Close of Escrow (as defined in Section
4) for the Property (the “Purchase Price”) is $26,100,000 and shall be paid in the following
increments at the following times:

     (i) Buyer shall deposit into Escrow (as defined in Section 4) immediately
available funds in the amount of $250,000 upon the Opening of Escrow (as defined in
Section 4) (the “Initial Deposit”);

     (ii) If Buyer elects to waive its right to terminate this Agreement pursuant to
Section 3(a)(ii)(2) below, Buyer shall deposit into Escrow in immediately available
funds in the amount of $750,000 prior to expiration of the Feasibility Period (as defined in
Section 3(a)(ii) below) (the “Second Deposit” and, together with the Initial
Deposit, collectively referred to herein as the “Deposit;”

     (iii) At least one business day prior to the Close of Escrow, Buyer shall deposit into
Escrow immediately available funds in the amount of $25,100,000 as well as all sums
necessary to pay Buyer’s costs, expenses and prorations in connection with this transaction;
and

     (b) In exchange for Seller’s agreement to enter into this Agreement, Buyer agrees that One
Hundred and 00/100 Dollars ($100.00) from the Initial Deposit constitutes independent consideration
for the execution of this Agreement (“Independent Consideration”) and shall not be refundable to
Buyer (even in the event of a default by Seller).

     (c) The Initial Deposit shall be placed in an account by Escrow Holder at a financial
institution whose deposits are federally insured upon terms and at an interest rate acceptable to
Buyer; provided, however, any such account shall place no restrictions on the ability to withdraw
the Deposit and all accrued interest on demand. All interest which accrues on the Initial Deposit
shall be considered a part of the Deposit. Upon expiration of the Feasibility Period and provided
that this Agreement has not been sooner terminated by Buyer or deemed terminated in accordance with
Section 3(a)(ii)(2) below, the entire Deposit shall become non-refundable to Buyer (except
if either (i) Seller fails to close Escrow in breach of this Agreement or (ii) there occurs a
failure of a condition precedent for Buyer’s benefit set forth in Section 3 below) and
shall be immediately released to Seller. Except as otherwise expressly provided herein, the
Deposit shall be applied as follows: (i) in the event that Close of Escrow occurs, the entire
amount of the Deposit shall be credited against the Purchase Price concurrently with the Close of
Escrow; (ii) in the event this Agreement is properly terminated by Buyer pursuant to Section
3 below or by Seller pursuant to Section 17 below, the Deposit (or, if the Second
Deposit has not
been made by Buyer at the time of such termination, the Initial Deposit only) minus the
Independent Consideration and minus Buyer’s share of Escrow cancellation charges as provided in
Section 5(e) below shall be refunded to Buyer; or (iii) in the event of a termination of
this Agreement by Seller due to a default by Buyer with respect to Buyer’s obligations under this

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Agreement, the Deposit shall be non-refundable to Buyer and shall constitute the liquidated damages
of Seller pursuant to Section 13 below.

3. Contingencies.

     (a) Buyer Contingencies. Buyer’s obligation to purchase the Property is conditioned
on the following:

          (i) Title.

          (1) Buyer has obtained or shall obtain from First American Title Insurance Company (the
“Title Company”) prior to expiration of the Feasibility Period (defined in Section
3(a)(ii) below) a title commitment covering the Property (the “Commitment”), together
with legible copies of all documents (the “Exception Documents”) relating to the title
exceptions referred to in the Commitment.

          (2) Buyer shall notify Seller and Escrow Holder in writing of all disapproved title
matters (the “Disapproved Title Matters”) by not later than the date which is the earlier to
occur of (i) the date which is thirty (30) days following the Opening of Escrow or (ii)
February 1, 2010. All other title matters set forth in the Commitment and all of the Title
Company’s standard printed exceptions to coverage shall constitute the “Permitted
Exceptions.” Buyer’s failure to so notify Seller and Escrow Holder shall be deemed to mean
that all title matters set forth in the Commitment are Permitted Exceptions. Within 10 days
after Seller receives Buyer’s written notification of the Disapproved Title Matters, Seller
may notify Buyer and Escrow Holder in writing of any Disapproved Title Matters which Seller
elects to cure, in which event Seller shall use commercially reasonable efforts to either
cause such Disapproved Title Matter(s) to be removed from title or obtain Title Company’s
commitment to provide an endorsement to the Title Policy (in form and content reasonably
satisfactory to Buyer) insuring over such Disapproved Title Matters; provided, however, that
Seller’s failure to cause such Disapproved Title Matter(s) to be so removed or insured over
shall not constitute a breach by Seller hereunder or otherwise subject Seller to any
liability to Buyer on account thereof but shall solely be deemed a failure of a condition
precedent to Buyer’s obligation to purchase the Property. Seller’s failure to give such
notice by the expiration of such ten (10) day period shall be deemed to mean Seller has
given notice to Buyer at the end of such ten (10) day period electing not to cause the
Disapproved Title Matters to be removed or insured against to Buyer’s reasonable
satisfaction. Buyer shall then, within five days of its receipt or deemed receipt of
Seller’s notice stating that Seller will not remove or insure against any of such
Disapproved Exceptions (but in any event by not later than the expiration of the
“Feasibility Period” as defined below), elect, by giving written notice to Seller and Escrow
Holder (A) to terminate this Agreement, or (B)
to waive its disapproval of such exceptions (such exceptions shall then be deemed to be
Permitted Exceptions). Buyer’s failure to give such notice shall be deemed an election to
waive its disapproval of such exceptions.

          (3) If after Buyer delivers its notice of Disapproved Title Matters, the Title Company,
prior to Close of Escrow, discloses to Buyer a new exception, or

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materially amends any
exception previously approved by Buyer, or materially amends the terms under which the Title
Company is willing to issue its policy of title insurance, then Buyer shall have five
business days from its receipt of such disclosure, together with legible copies of all
documents mentioned in such disclosure, to disapprove the same by written notice to Seller
and Escrow Holder. Buyer’s failure to so notify Seller shall be deemed to mean that such
disclosures are acceptable to Buyer and constitute additional Permitted Exceptions. Any
such disapproved disclosures shall be treated as Disapproved Title Matters and the
procedures therefor set forth in Section 3(a)(i)(1) above shall be implemented.

          (4) Seller shall not be obligated to remove or secure title insurance over any
Disapproved Title Matters other than monetary liens which can be released from the Property
upon the payment thereof out of Seller’s proceeds from the Escrow. Seller shall cause to be
released from title at or prior to the Close of Escrow all mortgages, deeds of trust,
mechanics liens and judgment liens then encumbering the Property, as well as the any
delinquent real property taxes and assessments. Seller agrees to provide Buyer with the
most recent survey it has for the Property, if any; provided, however, that Seller makes no
representation or warranty with respect to the truth, accuracy, or completeness of such
survey, if any. In the event Buyer requires any new or updated survey, then Buyer (A) shall
be responsible for obtaining such survey at Buyer’s sole cost and (B) agrees that the title
review period described in this Section 3(a)(i) shall not be extended on account of
Buyer obtaining such survey.

          (5) In any event but except as otherwise provided in Section 3(a)(i)(2) above,
Buyer’s review of all title matters as set forth in this Section 3(a)(i) shall be
finalized on or before the expiration of the Feasibility Period.

     (ii) Documents to be Obtained and Determinations to be made by Buyer. On or before
February 19, 2010 (such period being referred to herein as the “Feasibility Period”), Buyer
shall have notified Seller and Escrow Holder of Buyer’s approval or disapproval of Buyer’s
due diligence investigation of the Property, including such physical tests, market and
feasibility studies and other evaluations as Buyer in its discretion deems appropriate to
satisfy itself with respect to the Property, its current or intended use, physical
condition, state of repair and maintenance, current and projected net operating income,
applicable government land use entitlements, availability of utility or other services to
the Property, and any other matter which Buyer deems necessary or appropriate.

          (1) In such regard, Buyer acknowledges that Seller has previously made available to
Buyer those items related to the Property as are set forth on Exhibit C attached hereto
(such matters, together with any other written materials which heretofore have been provided
or which may hereafter be provided by Seller to Buyer being referred to collectively as the
“Property Documents”). All Property Documents and any other additional records, documents,
agreements and information made available to Buyer pursuant to subparagraph (2) below shall
be deemed “Evaluation Material” and subject to the terms of that certain Confidentiality
Agreement dated September 21, 2009, executed by Buyer in favor of Seller, the terms of which
are incorporated into this Agreement by

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this reference. Buyer acknowledges and agrees that
the Property Documents do not constitute the entirety of Seller’s file with respect to the
Property.

          (2) Buyer may request that Seller provide for Buyer’s review additional records with
respect to the Property not shown on Exhibit C. Seller may or may not comply with such
request in Seller’s reasonable discretion. However, Seller shall make available for
inspection by Buyer at Seller’s principal office and during normal business hours the
following types of documentation to the extent in Seller’s possession or control: (i) tenant
payment ledgers (produced or received in the last 12 months) for current tenants, (ii)
expense statements for 2009 (year to date) but only to the extent pertaining to Property
operations, (iii) unrecorded agreements relative to ingress and egress, if any, and (iv)
pending entitlement applications, if any.

          (3) Buyer shall have the absolute right to approve or disapprove within the Feasibility
Period any of the documents, materials, items or matters referred to in this Section
3(a)(ii) and the results of Buyer’s own due diligence, including any third party reports
ordered by Buyer (collectively, the “Property Due Diligence”), all in the exercise of
Buyer’s sole and absolute discretion. Buyer may elect to terminate this Agreement at any
time and for any reason (or no reason) prior to expiration of the Feasibility Period by
delivering notice of disapproval (“Disapproval Notice”) to Seller and Escrow Holder. If
Buyer desires to approve the results of its due diligence investigations and proceed to the
Close of Escrow, Buyer must affirmatively notify Seller and Escrow Holder in writing of such
election (“Approval Notice”) and deliver the Second Deposit to Escrow Holder in each case
prior to expiration of the Feasibility Period. If Buyer fails to deliver both an
Approval Notice and the Second Deposit in the manner required under this Agreement prior to
expiration of the Feasibility Period (or Buyer fails to deliver either a Disapproval Notice
or an Approval Notice prior to expiration of the Feasibility Period), Buyer will be deemed
to have elected to terminate this Agreement (Buyer hereby acknowledging and agreeing that
Buyer’s failure to timely deliver the Second Deposit to Escrow Holder shall be deemed
Buyer’s election to terminate this Agreement even if Buyer has timely delivered an Approval
Notice to Seller and Escrow Holder).

     (iii) Waiver; Failure of Condition; No Default. Buyer may waive any of the
contingencies set forth in this Section 3 by the delivery of written notice thereof
to Seller and Escrow Holder. The failure of the Escrow to close by reason of Buyer’s
disapproval of any such contingency or Seller’s failure to cure the same shall not constitute a
default by Seller under this Agreement.

     (iv) Seller’s Right to Studies. If Escrow fails to close for any reason other than the
breach of this Agreement by Seller, Buyer shall immediately deliver to Seller and Seller
shall be entitled to retain, at no cost or expense to Seller, all surveys, environmental
audits, reliance letters from outside consultants and other reports, investigations, test
results and information obtained by Buyer with respect to the Property or any part thereof
(but not including any of Buyer’s work papers), and Seller shall be authorized to use and
distribute any and all such documentation and information as it shall elect in its sole and
absolute discretion. All information delivered to Seller pursuant

5

 

to this Section
3(a)(iii) is delivered without any representation or warranty of Buyer as to the
completeness or accuracy thereof.

     (v) Estoppel Certificates.

          (1) Buyer shall have received and approved (Buyer’s approval being deemed given unless
an estoppel certificate discloses any material exception or qualification to the statements
made therein as compared to the terms of the applicable Lease or any ongoing default by
landlord or tenant under the applicable Lease or any other material adverse matter disclosed
therein) estoppel certificates (individually, a “Tenant Estoppel Certificate” and
collectively, the “Tenant Estoppel Certificates”) duly executed by each of the tenants under
the Leases (collectively, the “Estoppel Condition”). Seller covenants to use its
commercially reasonable efforts to obtain and deliver to Buyer, prior to the Close of
Escrow, Tenant Estoppel Certificates in substantially the form attached hereto as Exhibit
D-1 (or, if different from Exhibit D-1, the form required to be delivered by a tenant
pursuant to its Lease) executed by the tenants under the Leases; provided, however, the form
of Tenant Estoppel Certificate to be obtained from Jazz Semiconductor, Inc. (“Jazz”) in
connection with its Leases shall be the form attached hereto as Exhibit D-2. In connection
therewith, Seller shall have the right to extend the Close of Escrow one or more times by
delivering notice to Buyer and Escrow Holder not later than five (5) business days prior to
the then-current date for Close of Escrow (but in no event shall such extension(s) exceed
sixty (60) days in the aggregate) in order to permit additional time to obtain missing
Tenant Estoppel Certificates.

          (2) In the event that Seller is unable to satisfy the Estoppel Condition by the date
which is five (5) business days prior to the Close of Escrow (as the same may be extended by
Seller as provided in the immediately preceding paragraph), then Buyer shall have the right,
as its sole remedy (Buyer specifically waiving any right to bring an action against Seller
for damages), either to (x) terminate this Agreement by notice in writing to Seller, in
which event the Deposit and all interest earned thereon shall be refunded to Buyer (minus
the Independent Consideration and minus Buyer’s share of the Escrow cancellation charges as
provided in Section 5(e) below) and neither Party shall have any further rights or
obligations hereunder except for obligations which are
expressly stated to survive such termination, which shall survive such termination, or
(y) waive the same and accept title to the Property without any abatement of the Purchase
Price.

     (vi) Natural Hazard Disclosure. Prior to the date which is five (5) business days
before the expiration of the Feasibility Period, Seller shall provide Buyer with a natural
hazard disclosure statement (“Natural Hazard Disclosure Statement”) as set forth in
California Civil Code Section 1103.2. Buyer acknowledges that Seller has engaged or will
cause the Title Company to engage the services of a natural hazard disclosure expert (the
“Natural Hazard Expert”) to examine the maps and other information made available to the
public by government agencies for the purpose of enabling Seller to fulfill its disclosure
obligations and to prepare a written report of the result of its examination (the “Natural
Hazard Report”). Buyer acknowledges that the

6

 

Natural Hazard Report fully and completely
discharges Seller from its disclosure obligations, and, for the purpose of this Agreement,
the provisions of Civil Code Section 1103.4 regarding the non-liability of Seller for errors
or omissions not within its personal knowledge shall be deemed to apply and the Natural
Hazard Expert shall be deemed to be an expert dealing within the scope of its expertise with
respect to the examination and Natural Hazard Report. In no event shall Seller have any
responsibility for matters not actually known to Seller. Buyer acknowledges and agrees that
nothing contained in the Natural Hazard Disclosure Statement shall release Buyer from
Buyer’s obligation to fully investigate the condition of the Property, including, without
limitation, the Natural Hazard Disclosure Statement. Buyer further acknowledges and agrees
that the matters set forth in the Natural Hazard Disclosure Statement may change on or prior
to the Close of Escrow and that Seller has no obligation to update, modify or supplement the
Natural Hazard Disclosure Statement. The Natural Hazard Disclosure Statement shall be
deemed included in the contingency items to be approved or disapproved by Buyer by the
expiration of the Feasibility Period.

     (vii) Seller’s Obligations. As of the Close of Escrow, Seller shall have (i) made all
of the deliveries required to be made by Seller pursuant to Section 4(d) below, and
(ii) complied with its obligations under Section 15 below (excluding Seller’s
obligations under Section 15(a), compliance with which shall not be a condition to
Close of Escrow).

     (viii) Title Policy. Title Company shall be irrevocably committed to issuing in favor
of Buyer as of the Close of Escrow an ALTA Owner’s Standard Coverage Policy of Title
Insurance (Form 10-17-92)(the “Title Policy”) with liability in the amount of the Purchase
Price, dated the date of the Close of Escrow, issued by the Title Company, insuring that
Buyer is vested with fee simple title in the Land and any easements appurtenant thereto as
shown on the Commitment, subject only to the Permitted Exceptions and containing such
endorsements as Buyer and the Title Company may agree; provided, however, Buyer may arrange
that in lieu of the Title Policy, the Title Company shall issue an ALTA Owner’s Extended
Coverage Policy of Title Insurance (the “ALTA Policy”) with such liability and coverage.

     (ix) Accuracy of Seller’s Representations and Warranties. Seller’s representations and
warranties set forth in Section 9 shall be true and correct in all material respects
at the Close of Escrow.

     (b) Seller Contingencies. Seller’s obligation to consummate the transaction
contemplated by this Agreement is subject to the satisfaction of the following conditions for
Seller’s benefit:

     (i) Buyer’s Obligations. Buyer shall have timely performed all of the obligations
required by the terms of this Agreement to be performed by Buyer.

     (ii) Accuracy of Buyer’s Representations and Warranties. Buyer’s representations and
warranties set forth in Section 8 shall be true and correct in all material respects
at the Close of Escrow.

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4. Escrow.

     (a) Escrow Holder. Escrow No. 421096 for the purchase and sale of the Property (the “Escrow”)
has been established at First American Title Insurance Company, 5 First American Way, Santa Ana,
California 92701, Attention: Patty Beverly (the “Escrow Holder”).

     (b) Opening and Close of Escrow. The Escrow shall be deemed open (the “Opening of Escrow”)
upon the date of this Agreement. Escrow shall close on or before March 19, 2010 (the “Close of
Escrow”). Escrow shall be deemed to have closed at the time the Grant Deed is filed for record in
the Official Records of the County.

     (c) Escrow Instructions. This Agreement and any standard escrow instructions of Escrow Holder
as executed by Buyer and Seller shall constitute the escrow instructions of Buyer and Seller to the
Escrow Holder. To the extent of any inconsistency between the provisions contained herein and the
provisions contained in such standard escrow instructions, the provisions contained herein shall
prevail.

     (d) Seller Deposits into Escrow. Seller shall deliver or cause to be delivered to Escrow
Holder in a timely manner to permit the closing of the transaction contemplated hereby by the Close
of Escrow, the following:

     (i) A duly executed and acknowledged Grant Deed in the form attached hereto as Exhibit
E (the “Grant Deed”);

     (ii) A Bill of Sale (“Bill of Sale”), duly executed by Seller in the form attached
hereto as Exhibit “I”, conveying all of Seller’s right, title and interest in and to the
Personal Property;

     (iii) Two (2) counterpart original assignments and assumption of leases (each an
“Assignment of Leases”), duly executed by Seller in the form attached hereto as
Exhibit “J”, pursuant to which Seller shall assign to Buyer all of Seller’s right,
title and interest in and to the Leases and Security Deposits for the Property;

     (iv) Two (2) counterpart original general assignments (each a “General Assignment”),
duly executed by Seller in the form attached hereto as Exhibit “K”, pursuant to which Seller
shall assign to Buyer all of Seller’s right, title and interest in, under and to the
Intangibles;

     (v) A duly executed Non-Foreign Affidavit in the form of Exhibit F attached hereto (the
“Non-Foreign Affidavit”), and a California 593-C completed to indicate that no withholding
is required;

     (vi) A duly executed notice to each tenant or licensee under the Leases in the form of
Exhibit G attached hereto (the “Tenant Notices”);

     (vii) Two (2) counterpart originals of each Half Dome Lease (defined in Section
17 below), each duly executed by Seller; and

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     (viii) Any other executed or other documents reasonably required by the Title Company
to consummate this transaction, including without limitation a commercially reasonable
owner’s affidavit with respect to the existence or absence of potential mechanics liens
arising from construction at the Property occurring prior to Close of Escrow.

     (e) Buyer Deposits into Escrow. Buyer shall deliver or cause to be delivered to Escrow Holder
in a timely manner to permit the closing of the transaction contemplated hereby by the Close of
Escrow, the following:

     (i) Except to the extent already placed into Escrow as the Deposit, the Purchase Price;

     (ii) Two (2) counterpart original Assignments of Leases, duly executed by Buyer;

     (iii) Two (2) counterpart original General Assignments, duly executed by Buyer;

     (iv) Two (2) counterpart originals of each Half Dome Lease, each duly executed by
Buyer;

     (v) A duly executed preliminary change of ownership statement (the “PCO Statement”);

     (vi) A copy of the Natural Hazard Disclosure Statement signed as acknowledged by Buyer;

     (vii) Immediately available funds in an amount equal to all sums necessary to pay
Buyer’s costs, expenses, and prorations in connection with this transaction as provided in
this Agreement; and

     (viii) Any other executed or other documents reasonably required by the Title Company
to consummate this transaction.

     (f) Delivery of Leases to Buyer Outside of Escrow. At or immediately after the Close of
Escrow, Seller shall deliver to Buyer, to the extent same are in the possession of Seller, Seller’s
original executed Leases (to the extent originals are not available, Seller shall deliver copies in
Seller’s possession or control).

     (g) Authorization to Close Escrow. Provided that Escrow Holder shall not have received
written notice from Buyer or Seller of the failure of any conditions precedent or of the
termination of the Escrow, Buyer and Seller have deposited into the Escrow the items required by
this Agreement and the Title Company can and will issue the Title Policy (as defined in Section
7), concurrently with the Close of Escrow, Escrow Holder shall:

9

 

     (i) Deliver to Buyer the Grant Deed by causing it to be recorded in the Official
Records of the County and requesting that it be mailed to Buyer after it has been recorded;

     (ii) Deliver to Seller or to Seller’s order the cash portion of the Purchase Price,
less (A) all amounts to be paid by Seller hereunder, (B) Seller’s share of liabilities
and/or expenses to be prorated by Escrow Holder to Seller’s account under Section 6,
and (C) all amounts paid by Escrow Holder or the Title Company in satisfaction of liens and
encumbrances on the Property in order to put title to the Property into the state required
by this Agreement;

     (iii) Deliver executed counterpart originals of the Assignment of Leases, General
Assignment and Half Dome Leases to each of the Parties;

     (iv) Deliver to Buyer the Bill of Sale and Non-Foreign Affidavit;

     (v) Deliver by certified mail the Tenant Notices to each of the tenants or licensees
under the Leases;

     (vi) Cause the Title Policy to be issued to Buyer by Title Company;

     (vii) Cause the PCO Statement to be delivered to the Tax Assessor for the County or
with any other governmental official or agency as required by applicable law; and

     (viii) Deliver to Seller the copy of the Natural Hazard Disclosure Statement as signed
and acknowledged by Buyer.

     (h) Interpleader. Buyer and Seller (each a “Party” and collectively the “Parties”) expressly
agree that if the Parties give the Escrow Holder contradictory instructions, the Escrow Holder
shall have the right at its election to file an action in interpleader requiring the Parties to
answer and litigate their several claims and rights between themselves and the Escrow Holder is
authorized to deposit with the clerk of the court all documents and funds held in the Escrow. In
the event such action is filed, the Parties each agree to pay one-half of the total of Escrow
Holder’s cancellation charges and costs, expenses and reasonable attorney’s fees which Escrow
Holder is required to expend or incur in the interpleader action, the amount thereof to be fixed
and judgment therefor to be rendered by the court; provided, however, if the court determines that
the instructions given to Escrow Holder by one of the Parties were improper, then such Party shall
bear all of such costs and expenses. Upon the filing of such an action, Escrow Holder shall
thereupon be fully released and discharged from all obligations to perform further any duties or
obligations otherwise imposed by the terms of the Escrow.

     (i) U.S. Treasury Regulations. The purchase and sale of the Property is the sale of
“reportable real estate” within the meaning of U.S. Treasury Regulations Section 1.6045-4 (the
“Regulation”). Escrow Holder is the “real estate reporting person” within the meaning of the
Regulation and shall make all reports to the federal government as required by the Regulation.

10

 

     (j) Exchange Cooperation. Either Party may substitute an intermediary (the “Intermediary”) to
act in place of such Party with regards to the sale or purchase of the Property. An Intermediary
shall be designated in writing by the Party designating the Intermediary (the “Designating Party”)
to the other Party (the “Non-Designating Party”) and Escrow Holder. Upon designation of an
Intermediary and upon the Intermediary’s written assumption of the Designating Party’s obligations
hereunder, the Intermediary shall be substituted for the Designating Party in the Escrow as the
buyer or seller of the Property. The Non-Designating Party agrees to accept the Purchase Price and
all other required performance under this Agreement from the Intermediary and to render its
performance of all of its obligations to the Intermediary. The Non-Designating Party agrees that
performance by the Intermediary will be treated as performance by the Designating Party, and the
Designating Party agrees that the Non-Designating Party’s performance to the Intermediary will be
treated as performance to the Designating Party. The Designating Party unconditionally guarantees
the full and timely performance by the Intermediary of each and every one of the representations,
warranties, indemnities, obligations and undertakings of the Designating Party pursuant to this
Agreement. As such guarantor, the Designating Party shall be treated as a primary obligor with
respect to such representations, warranties, indemnities, obligations and undertakings, and, in the
event of breach thereof, the Non-Designating Party may proceed directly against the Designating
Party on this guarantee without the need to join the Intermediary as a party to the action against
the Designating Party. The Designating Party unconditionally waives any defense that it might have
as guarantor that it would not have if it had made or undertaken such representations, warranties,
indemnities, obligations and undertakings directly. If either of the Parties or both undertakes to
designate an Intermediary pursuant to this paragraph, (i) in no event shall the Designating Party,
as applicable, be deemed to have given the Non-Designating Party any advice regarding the
tax-deferred nature of this transaction or any other advice regarding the treatment of this
transaction under federal or state tax laws and both of the Parties shall rely solely on the
advice of their own legal and tax advisors; (ii) any Non-Designating Party shall not bear any
additional expenses from the Designating Party’s decision to designate Intermediary; (iii) there
shall not be any delay in the Close of Escrow by reason of such designation; and (iv) neither Buyer
nor Seller shall be required to take title to any real or personal property other than the
Property.

5. Closing Costs.

     (a) Seller shall pay (i) any documentary transfer tax on the Grant Deed, and (ii) 50% of all
escrow fees of the Escrow Holder.

     (b) Buyer shall pay (i) the fees for recording the Grant Deed, (ii) 50% of all escrow fees of
the Escrow Holder and (iii) the costs of mailing the Tenant Notices.

     (c) Seller shall pay the base premium for the Title Policy and the cost of any endorsements
issued to insure over Disapproved Title Matters which Seller has agreed to cure; Buyer shall pay
the cost of all other title endorsements. If Buyer elects to obtain the ALTA Policy as provided
below, Buyer shall be solely responsible for any difference in premium or charge between the Title
Policy and the ALTA Policy and for all survey and other costs associated with such ALTA Policy.
Buyer shall also be responsible for the additional premium for any separate lender’s policy of
title insurance.

11

 

     (d) Any other costs of the Escrow or of closing pertaining to this transaction not otherwise
expressly allocated between Buyer and Seller under this Agreement shall be apportioned in the
manner customary in the County.

     (e) Notwithstanding the foregoing provisions of this Section 5, if the Escrow fails to
close for any reason after expiration of the Feasibility Period (other than the breach of this
Agreement by one or both of the Parties), Escrow cancellation costs shall be borne equally by Buyer
and Seller. Otherwise, the Party who breached this Agreement first shall bear all such
cancellation costs.

6. Prorations and Adjustments.

     (a) At the Close of Escrow, the following items shall be prorated as of the date of the Close
of Escrow with all items of income and expense for the Property being borne by, and accruing to,
Buyer from and after (but including) the date of the Close of Escrow: Tenant Receivables (as
defined below) and other income and rents; fees and assessments; prepaid expenses and obligations
under service contracts; accrued operating expenses; taxes and assessments; and any assessments by
private covenant for the then-current calendar year of the Close of Escrow. Specifically, the
following shall apply to such prorations:

     (i) Taxes. If taxes and assessments for the year of the Close of Escrow are not known
or cannot be reasonably estimated as of the Close of Escrow, taxes and assessments shall be
prorated based on taxes and assessments for the year prior to the
Close of Escrow and an adjustment shall be made pursuant to Section 6(b) below
when the amount of the taxes and assessments is known.

     (ii) Utilities. Buyer and Seller shall take all steps necessary to effectuate the
transfer of all utilities to the name of Buyer as of the Close of Escrow. Seller shall
endeavor to have all utility meters read as of the date of Close of Escrow. To the extent
utility readings cannot be taken as of the date of Close of Escrow, Buyer and Seller shall
reasonably estimate what the readings would likely have been as of the Close of Escrow based
upon (i) an actual reading, (ii) the date and time the actual reading occurred and (iii)
such information as may be available to Seller and Buyer relating to daily usage rates.

     (iii) Tenant Receivables. Rents due from tenants under Leases and operating expenses
and/or taxes payable by tenants under Leases (collectively, “Tenant Receivables”) shall be
apportioned on the basis of the period for which the same is payable and if, as and when
collected, as follows:

               (1) Buyer shall apply rent, license fees and other income and payments received from tenants
under Leases after the Close of Escrow in the following order of priority: (A) first, to payment of
the current Tenant Receivables then due for the month in which the Close of Escrow occurs, which
amount shall be apportioned between Buyer and Seller as of the Close of Escrow as set forth in this
Section 6 (with Seller’s portion thereof to be delivered to Seller); (B) second, to Tenant
Receivables applicable to the period of time after the month in which Close of Escrow occurs, which
amount shall be retained by Buyer; and (C) thereafter, to

12

 

Tenant Receivables applicable to the
period of time before the month in which the Close of Escrow occurs, which amount shall be
delivered to Seller (collectively, “Uncollected Tenant Receivables”). Buyer shall not be obligated
to attempt to collect Uncollected Tenant Receivables for the benefit of Seller. Seller may,
however, pursue collection efforts (including without limitation instituting collection actions)
against tenants with Uncollected Tenant Receivables. Any sums received by one party to which the
other party is entitled shall be remitted to the other party within five (5) business days after
receipt thereof less reasonable, actual costs and expenses of collection, including reasonable
attorneys’ fees, court costs and disbursements, if any. Seller expressly agrees that if Seller
receives any amounts after the Close of Escrow which are attributable, in whole or in part, to any
period after the Close of Escrow, Seller shall remit to Buyer for proration hereunder all such sums
received by Seller within five (5) business days after receipt thereof. The provisions of this
Section 6(a)(iii)(1) shall survive the Close of Escrow.

               (2) If the final reconciliation or determination of operating expenses and/or taxes due under
the Leases shows that a net amount is owed by Seller to Buyer, Buyer’s prorata portion shall be
paid by Seller to Buyer within ten (10) business days of such final determination under the Leases
as the case may be. If the final determination of operating expenses and/or taxes under the Leases
shows that a net amount is owed by Buyer to Seller, Buyer shall, within ten (10) business days of
such final determination, remit to Seller Seller’s portion of operating expenses and/or taxes for
the period up to and including the Close of Escrow, if, as and when received. Notwithstanding anything contained herein to the contrary,
if the operating expenses and/or taxes payable by a tenant under its Lease are subject to a cap,
such cap shall be prorated based upon the number of days Seller is the owner of the Property during
the applicable period. In the event Seller’s collection of operating expenses and/or taxes from
such tenant during such period is in excess of the prorated cap, the reconciliation statement shall
reflect a payment to Buyer in the amount of such excess which Seller shall make concurrent with the
finalization of the applicable reconciliation statement. The provisions of this Section
6(a)(iii)(2) shall survive the Close of Escrow.

               (3) Notwithstanding anything to the contrary contained herein, the determination of Tenant
Receivables under the Jazz Leases shall be based upon the latest quarterly reconciliations under
the Jazz Leases then available as of the Close of Escrow. Seller and Buyer shall cooperate with
one another after the Close of Escrow in preparing the quarterly reconciliations required under the
Jazz Leases for the period which includes the Close of Escrow.

     (b) Final Adjustment After Close of Escrow. If final bills are not available or cannot be
issued prior to the Close of Escrow for any item being prorated above, then Buyer and Seller shall
allocate such items on a fair and equitable basis at the Close of Escrow, with final adjustments to
be made as soon as reasonably possible after the Close of Escrow; provided, however, such final
adjustment shall be made by the date which is twelve (12) months after the Close of Escrow.
Payments in connection with the final adjustment shall be due within thirty (30) days of written
notice. All such rights and obligations shall survive the Close of Escrow.

     (c) Security Deposits. All security deposits not applied by Seller (and interest thereon if
required by law or contract) shall be transferred or credited to Buyer at the Close of Escrow.
Non-cash forms of security deposits (letters of credit and the like) shall also be so

13

 

assigned at
the Close of Escrow. As of the Close of Escrow, Buyer shall assume all of Seller’s obligations
related to the security deposits, but only to the extent they are credited or transferred to Buyer.
Any other deposits of tenant funds (e.g., deposits held for tenant improvement costs and/or
reserves, if any) held and not applied by Seller shall also be so transferred or credited at the
Close of Escrow.

7. Possession; Jazz Lease.

     (a) Possession. Buyer shall be placed in possession of the Property as of the Close of
Escrow, subject to the rights of tenants under Leases.

     (b) Deed. Title to the Property shall be conveyed to Buyer by the Grant Deed.

     (c) Jazz Lease. For purposes of complying with those provisions in the Jazz Leases respecting
the release of seller from liability thereunder following the Close of Escrow, upon the Close of
Escrow Buyer shall be deemed to have assumed responsibility to cure any continuing defaults of
Seller under the Jazz Leases existing as of the Close of Escrow. Upon request of Seller, Buyer
agrees to confirm such assumption in a writing to be delivered to Jazz. Buyer’s obligations under
this subparagraph (d) shall survive the Close of Escrow.

8. Representations, Warranties and Covenants of Buyer.

     (a) Buyer hereby represents, warrants and covenants to Seller that the following matters are
true and correct as of the execution of this Agreement and also will be true and correct as of the
Close of Escrow:

     (i) Buyer is a limited liability company duly formed, validly existing and in good
standing under the laws of the State of Delaware.

     (ii) This Agreement and all the documents to be executed and delivered by Buyer to
Seller pursuant to the terms of this Agreement, (i) have been or will be duly authorized,
executed and delivered by Buyer, (ii) are or will be legal, valid and binding obligations of
Buyer as of the date of their respective executions, (iii) are or will be enforceable in
accordance with their respective terms (except to the extent that such enforcement may be
limited by applicable bankruptcy, insolvency, moratorium and other principles relating to or
limiting the rights of contracting parties generally), and (iv) do not, and will not at, the
Close of Escrow, violate any provisions of any agreement to which Buyer is a party. Buyer
shall deliver to Seller, within thirty (30) days after Opening of Escrow, a set of
resolutions signed by all of the members of Buyer confirming the due authorization,
execution and delivery of this Agreement by Buyer and the person(s) authorized to execute
any agreement or other instrument to be delivered in connection with this Agreement.

     (iii) To Buyer’s actual knowledge, Buyer is not included on the List of Specially
Designated Nationals and Blocked Persons maintained by the Office of Foreign Assets Control
(“OFAC”), or resides in, or is organized or chartered under the laws of, (A) a jurisdiction
that has been designated by the U.S. Secretary of the Treasury under Section 311 or 312 of
the Patriot Act (defined below) as warranting special measures due

14

 

to money laundering
concerns or (B) any foreign country that has been designated as non-cooperative with
international anti-money laundering principles or procedures by an intergovernmental group
or organization, such as the Financial Action Task Force on Money Laundering, of which the
United States is a member and with which designation the United States representative to the
group or organization continues to concur. As used herein, the term “Patriot Act” means the
International Money Laundering Abatement and Anti-Terrorist Financing Act of 2001, which
comprises Title III of the Uniting and Strengthening America by Providing Appropriate Tools
Required to Intercept and Obstruct Terrorism Act of 2001, as reauthorized by the USA Patriot
Improvement and Reauthorization Act of 2005. As used herein, the term “actual knowledge” as
it relates to Buyer shall mean the actual knowledge (without investigation or the duty to
conduct investigation) of Mark Buckland.

     (b) Buyer hereby agrees and acknowledges that (i) it is buying the Property on an “AS-IS”
basis; (ii) it has made or will have made its own investigations and inspections of the Property,
including, without limitation, the physical aspects of the Property and the Property’s compliance
with all laws applicable to the Property and the Property’s fitness for its current or
intended use or development (including without limitation the availability of future
governmental permits or entitlements for the Property); (iii) in connection with its investigations
and inspections of the Property it has contracted or had the opportunity to contract with certain
advisors and consultants, including, but not limited to, environmental consultants, engineers and
geologists, to conduct such environmental, hazardous material, geological, soils, hydrology,
seismic, endangered species, archeological, physical, structural, mechanical and other inspections
of the Property as Buyer deemed to be necessary; (iv) by the expiration of the Feasibility Period
it will have approved the reports of such advisors and consultants; (v) it is relying solely on
such reports and its own investigations as to the Property, its condition and other characteristics
and compliance with laws; and (vi) except for the representations and warranties set forth in
Section 9, it is not making the purchase of the Property in reliance upon any statements or
representations, express or implied, made by Seller or its agents or brokers, as ·to the condition
of or characteristics of the Property, its fitness for use for any particular purpose, or the
Property’s compliance with any zoning or other rules, regulations, laws or statutes applicable to
the Property, or the uses permitted on or the development requirements for or any other matters
relating to the Property. Except as set forth in Section 9, Seller has no liability nor
responsibility to Buyer in connection with the matters set forth in this Section 8(b),
including, without limitation, any liability under any laws, rules, regulations or ordinances
regulating the environment, Hazardous Materials (defined below), or human health and safety, or any
latent or patent defects. Without limiting the foregoing, Buyer has not relied on any comparable
sales or rents provided by Seller or any of its agents or representatives with respect to the value
or cash flow of the Property, nor has Buyer relied on any value or cash flow projections, lease
abstracts, tenant information or general information provided by Seller or any of its agents or
representatives regarding the Property’s submarket or the availability of entitlements to redevelop
the Property.

As used herein, the term “Hazardous Materials” means any chemicals, materials, compounds or
substances, which is toxic, explosive, corrosive, flammable, infectious, radioactive, carcinogenic,
reproductive toxicant, mutagenic, reactive, or otherwise hazardous or defined as, listed or
included in the definition of “hazardous substance,” “hazardous materials,” “hazardous wastes,”

15

 

“universal waste,” “bio-hazardous wastes,” “medical wastes,” “radioactive wastes,” “pharmaceutical
wastes,” “commingled wastes,” “toxic substances,” “toxin,”, “pollutant”, “contaminant,” or words of
similar usage and import under any federal, applicable state or local statute, regulation, rule or
ordinance or amendments thereto, including without limitation, the Comprehensive Environmental
Response, Compensation and Liability Act (42 U.S.C. §§ 9601 et. seq.) and/or the Resource
Conservation and Recover Act (42 U.S.C. §§ 6901 et. seq.), including petroleum or any petroleum
products, constituents, additives, or derivatives thereof; radioactive materials; radionuclide;
radon gas; mercury; asbestos and asbestos-containing materials; mold (including without limitation
materials governed by California’s Toxic Mold Protection Act (Cal. Health & Safety Code
§§26100-26156; stats 2001, ch 584)); polychlorinated biphenyls and any transformers or other
equipment that contains dielectric fluids containing polychlorinated biphenyls; and any other
chemical, material, waste or substance, the use, handling, storage, treatment, disposal, release,
discharge of, or exposure to which is prohibited, limited or otherwise regulated.

     (c) NEITHER SELLER NOR ANY OTHER PARTY ACTING (OR PURPORTING TO ACT) ON BEHALF OF SELLER, HAS
MADE ANY (AND SELLER HEREBY DISCLAIMS ANY) REPRESENTATION OR WARRANTY OF ANY KIND OF NATURE
CONCERNING THE EXISTENCE OR ABSENCE OF HAZARDOUS MATERIALS AT, UNDER OR ABOUT THE PROPERTY (OR
OTHER PARCELS IN PROXIMITY THERETO), INCLUDING WITHOUT LIMITATION (1) AIR QUALITY OR WATER
CONDITIONS, OR (2) MATTERS DISCLOSED BY THE ENVIRONMENTAL REPORTS INCLUDED IN THE PROPERTY
DOCUMENTS OR OTHERWISE MADE AVAILABLE TO OR OBTAINED BY BUYER (THE MATTERS STATED THEREIN BEING
REFERRED TO AS THE “ENVIRONMENTAL DISCLOSED MATTERS”). BUYER SHALL TAKE TITLE TO THE PROPERTY
SUBJECT TO ANY AND ALL HAZARDOUS MATERIALS WHICH MAY EXIST AT, UNDER OR ABOUT THE PROPERTY (OR
OTHER PARCELS IN PROXIMITY THERETO), WHETHER KNOWN OR UNKNOWN, DISCLOSED OR UNDISCLOSED, INCLUDING,
WITHOUT LIMITATION, THE ENVIRONMENTAL DISCLOSED MATTERS, AND ANY AND ALL CLAIMS AND/OR LIABILITIES
RELATING THERETO IN ANY MANNER WHATSOEVER (ANY OF THE FOREGOING DESCRIBED IN THIS SUBPARAGRAPH (C)
BEING REFERRED TO AS “ENVIRONMENTAL CONDITIONS”).

     (d) BUYER ACKNOWLEDGES THAT BUYER’S OPPORTUNITY FOR INSPECTION AND INVESTIGATION OF THE
PROPERTY (AND OTHER PARCELS IN PROXIMITY THERETO) HAS BEEN ADEQUATE TO ENABLE BUYER TO MAKE BUYER’S
OWN DETERMINATION WITH RESPECT TO ENVIRONMENTAL CONDITIONS. FURTHERMORE, BUYER’S CLOSING HEREUNDER
SHALL BE DEEMED TO CONSTITUTE AN EXPRESS WAIVER OF THE RIGHT OF BUYER AND ITS SUCCESSORS AND
ASSIGNS TO SUE SELLER AND OF BUYER’S RIGHT TO CAUSE SELLER TO BE JOINED IN AN ACTION BROUGHT UNDER
ANY FEDERAL, STATE OR LOCAL LAW, RULE, ACT OR REGULATION NOW EXISTING OR HEREAFTER ENACTED OR
AMENDED WHICH PROHIBITS OR REGULATES THE USE, HANDLING, STORAGE, TRANSPORTATION OR DISPOSAL OF
HAZARDOUS MATERIALS OR WHICH REQUIRES REMOVAL OR REMEDIAL ACTION WITH RESPECT TO SUCH

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HAZARDOUS
MATERIALS, SPECIFICALLY INCLUDING, BUT NOT LIMITED TO THE STATUTES SET FORTH ABOVE IN THE
DEFINITION OF HAZARDOUS MATERIALS.

     (e) Section 25359.7 of the California Health and Safety Code requires owners of nonresidential
property who know or have reasonable cause to believe that a release of a hazardous material has
come to be located on or beneath real property to provide written notice of that condition to a
buyer of said real property. Buyer acknowledges that Seller has disclosed to Buyer all matters
described in the Environmental Disclosed Matters. By Buyer’s execution of this Agreement, Buyer
(i) acknowledges Buyer’s receipt of the foregoing notice given pursuant to Section 25359.7 of the
California Health and Safety Code, (ii) has become or will become fully aware prior to the Close of
Escrow of the matters described in the Environmental Disclosed Matters, a copy of which Buyer has
received and has reviewed; and (iii) as of Close of Escrow and after receiving advice of Buyer’s
legal counsel, waives any and all rights or remedies
whatsoever, express, implied, statutory or by operation of law, Buyer may have against Seller
and arising under Section 25359.7 of the California Health and Safety Code.

     (f) Effective on the Close of Escrow, and except with respect to the matters specifically set
forth in Section 9, Buyer hereby releases Seller from and waives all claims against Seller,
at law or in equity, whether known or unknown, suspected or unsuspected which Buyer has or may
have, arising out of or related to Environmental Conditions, the value, cashflow or physical
condition of the Property, its compliance with applicable law, the status or availability of
entitlements for the Property, or its fitness for Buyer’s intended purpose.

     (g) With respect to the foregoing release by Buyer contained in this Agreement, Buyer
expressly waives the provisions of California Civil Code § 1542, which provides as follows:

“A general release does not extend to claims which the creditor does not know or
suspect to exist in his or her favor at the time of executing the release, which if
known by him or her must have materially affected his or her settlement with the
debtor.”

BUYERS INITIALS ______

     (h) Each covenant, agreement, representation and warranty contained in this Section 8
shall survive the Close of Escrow or termination of this Agreement.

9. Representations, Warranties and Covenants of Seller. Subject in all respects to the
matters set forth in Section 8 above, Seller hereby represents, warrants and covenants to
Buyer that the following matters are true and correct as of the execution of this Agreement and
will also be true and correct as of the Close of Escrow:

     (a) Seller is a corporation duly formed, validly existing and in good standing under the laws
of the State of Delaware.

     (b) This Agreement and all the documents and items to be executed and delivered by Seller to
Buyer pursuant to the terms of this Agreement, (i) have been or will be duly authorized, executed
and delivered by Seller, (ii) are or will be legal, valid and binding obligations of Seller

17

 

as of
the date of their respective executions, (iii) are or will be enforceable in accordance with their
respective terms (except to the extent that such enforcement may be limited by applicable
bankruptcy, insolvency, moratorium and other principles relating to or limiting the rights of
contracting parties generally); and (iv) do not and will not, at the Close of Escrow, violate any
provisions of any agreement to which Seller is a party except for any restriction on transfer
pursuant to that certain Indenture dated as of November 13, 2006, between Seller and The Bank Of
New York Trust Company, N.A. (the interests of which as indenture trustee have succeeded to The
Bank of New York Mellon Trust Company, N. A.) relating to Seller’s Floating Rate Senior Secured
Notes due 2010 (the “Notes”) Seller has issued a redemption notice announcing that it will redeem
all of the outstanding Notes which is expected to close prior to the Close of
Escrow. The Property shall be conveyed to Buyer at the Close of Escrow free and clear of any
lien on the Property held for the benefit of the holders of the Notes. Seller shall deliver to
Buyer, within thirty (30) days after Opening of Escrow, a set of resolutions of the board of
directors of Seller confirming the due authorization, execution and delivery of this Agreement by
Seller and the person(s) authorized to execute any agreement or other instrument to be delivered in
connection with this Agreement, which resolutions shall be certified by the corporate secretary of
Seller.

     (c) To Seller’s actual knowledge, the Property Documents are true and correct in all material
respects as of the date of such document; provided, however, that Seller makes no representation or
warranty and shall have no liability or responsibility for (i) any inaccuracy in the square
footages recited for the Improvements herein or in any Property Document, and (ii) anything set
forth in any third party reports which are included in the Property Documents.

     (d) To Seller’s actual knowledge, and except as otherwise disclosed to Buyer in writing, no
condemnation, eminent domain or other legal action is pending or threatened in writing against the
Property, nor has Seller any actual knowledge of any assessments affecting the Property other than
as set forth in the Commitment.

     (e) To Seller’s actual knowledge, and except as otherwise disclosed to Buyer in writing, there
are no violations of any covenants, conditions or restrictions applicable to the Property, and
Seller has received no written notice or complaint with respect to any such violation or alleged
violation.

     (f) To Seller’s actual knowledge: (i) there are no leases or tenancy agreements affecting the
Property, or any portion thereof, other than the Leases delivered to Buyer and reflected in the
Rent Schedule; (ii) the information set forth in said Rent Schedule is true and correct in all
material respects as of the date thereof; (iii) there are no amendments, modifications or
supplements to the Leases, whether oral or written, except those disclosed to Buyer in the Property
Documents; (iv) Seller has not received any rentals or security or other deposits thereunder other
than as set forth in the Leases; and (v) there are no material defaults under the Leases.

     (g) There is not currently in effect any unrecorded agreement entered into by Seller or by
which Seller is bound by which a third party has been granted any parking rights at or with respect
to the Property except for the Leases and except as otherwise disclosed to Buyer in the Property
Documents.

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     (h) Seller has not received any written correspondence challenging the validity of any
easement appurtenant to the Property as shown on the ALTA survey made available to Buyer as part of
the Property Documents.

     (i) To Seller’s actual knowledge, Seller is not included on the List of Specially Designated
Nationals and Blocked Persons maintained by OFAC, or resides in, or is organized or chartered under
the laws of, (A) a jurisdiction that has been designated by the U.S. Secretary of the Treasury
under Section 311 or 312 of the Patriot Act as warranting special measures due to money laundering
concerns or (B) any foreign country that has been designated as non-cooperative with international
anti-money laundering principles or procedures by an intergovernmental group or organization, such
as the Financial Action Task Force on Money Laundering, of which the United States is a member and
with which designation the United States representative to the group or organization continues to
concur.

     For purposes of the foregoing representations and warranties, “Seller’s actual knowledge”
shall mean the actual knowledge of Jake Cisneros without duty of inquiry and without being charged
with record or constructive knowledge.

     Notwithstanding anything else contained in this Agreement, if any representation or warranty
made by Seller hereunder is true and correct as of the execution of this Agreement but is not true
and correct as of the Close of Escrow, so long as the same has not occurred by reason of Seller’s
willful act or omission, then Seller shall not be liable to Buyer in damages by reason thereof and
Buyer’s sole remedy shall be the following: (i) waive Buyer’s closing condition set forth in
Section 3(a)(vi) and close Escrow or (ii) terminate the Agreement and receive the Deposit
minus the Independent Consideration. Notwithstanding anything to the contrary contained in this
Agreement, Buyer agrees that any claim(s) brought by Buyer against Seller after the Close of Escrow
based on an alleged breach of a representation and warranty by Seller must (1) be filed in the
appropriate forum pursuant to this Agreement within twelve (12) months from the Close of Escrow
(except as otherwise provided in Section 3(a)(v)(2) above), and (2) aggregate to more than
$100,000.00. In addition and without limitation, (x) the maximum amount of liability that Seller
shall have under any circumstance for any and all surviving obligations under this Agreement
(including, without limitation, any obligation arising out of any representation or warranty made
by Seller in this Agreement and any liability under any instrument or document delivered by Seller
at or in connection with the Close of Escrow) shall not exceed an amount equal to $1,000,000 in the
aggregate, and (y) Buyer shall in no event be entitled to seek punitive damages on account of any
such surviving obligation of Seller under this Agreement or other Seller obligation arising out of
an instrument or document delivered by Seller at or in connection with the Close of Escrow.

10. Right to Enter Property; Contact with City.

     (a) Right to Enter. Commencing on the Opening of Escrow, and continuing thereafter until the
Close of Escrow or earlier termination of this Agreement, Buyer and its agents shall have the
right, at Buyer’s sole cost and expense, and upon one (1) business day’s prior written notice to
Seller (subject to any longer notice period provided in the Jazz Leases, which shall govern any
entry into the premises occupied by Jazz), which notice shall contain a certified copy of the
liability insurance policy described below, to enter onto the Property at

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reasonable times and in a reasonable manner for the purpose of making such tests and
inspections as Buyer deems necessary in connection with this Agreement; provided, however, Buyer
shall not conduct any destructive or invasive testing without the prior written consent of Seller,
which shall not be unreasonably withheld. Buyer shall not inspect or attempt to inspect the
interior of the Improvements without first obtaining Seller’s prior written approval which shall
not be unreasonably withheld. Seller shall arrange for such interior inspection of the
Improvements by Buyer and Seller shall have the right to accompany Buyer during any such inspection
and during any tenant interviews. Buyer agrees that, under no condition, shall Buyer communicate
or attempt to communicate with the tenants or the tenants’ representatives under the Leases unless
Buyer has given at least one (1) business day’s prior written notice to Seller and Seller has been
afforded the opportunity to have a representative present during any such communications. Buyer
shall maintain liability insurance coverage applicable to such activities with coverage in an
amount of $2,000,000 per occurrence and issued by an insurer reasonably acceptable to Seller. Such
policy shall name Seller as an additional insured and shall provide that there shall not be any
cancellation or reduction in coverage without thirty (30) days’ prior written notice to Seller at
the address set forth in Section 15. After making such tests and inspections, Buyer shall
restore the Property to its condition prior to such tests and inspections. Buyer hereby agrees to
indemnify, defend, protect and hold Seller harmless from and against any loss, liability, claim,
damage, cost or expense (including attorneys’ fees) in connection with such tests and inspections.
Any liability of Buyer to Seller with respect to the foregoing indemnity shall not be limited to or
defined by the liquidated damages provision set forth in Section 13 below and shall survive
the Close of Escrow. Notwithstanding anything to the contrary contained herein, Buyer shall have
no liability to Seller (nor shall the foregoing Buyer indemnity apply to) for Buyer’s mere
discovery of an existing condition on the Property so long as Buyer did not exacerbate such
existing condition in any manner.

     (b) Contact with City. Buyer agrees not to contact or discuss with the City or any other
governmental or quasi-public agency (or any employee or other representative of any such agency)
that Buyer is under contract to purchase the Property or any other aspect of the Property,
including without limitation the nature or status of the entitlement process regarding the Property
or areas adjacent thereto, in each case without providing at least three (3) business days prior
written notice to Seller. Seller shall have the right to have a representative present during any
such communication.

11. Destruction of the Improvements.

     If prior to the Close of Escrow the Improvements are damaged or destroyed, whether by fire or
other casualty, then Seller shall promptly notify Buyer of such damage or destruction and the cost
to repair the same, as reasonably estimated by Seller. In the event such estimated cost is in
excess of $100,000, Buyer may terminate the Escrow and this Agreement by giving Seller written
notice of its intent to do so within three days after the date Buyer receives actual notice of such
damage or destruction. Upon such termination, neither Party shall have any further rights or
obligations hereunder, and the Deposit shall be returned to Buyer minus the Independent
Consideration and minus Buyer’s share of Escrow cancellation costs determined pursuant to
Section 5(e). In the event such estimated cost of repair is $100,000 or less, or in the
event Buyer elects not to terminate this Agreement, then the Escrow and this Agreement shall remain
in full force and effect and Seller shall assign to Buyer, as a condition precedent to the Close of
Escrow,

20

 

all of Seller’s right, title and interest in and to any insurance proceeds or claims therefor
with respect to such damage or destruction. Additionally, in such latter case, Seller shall pay to
Buyer, by way of a credit against the Purchase Price, an amount equal to the lesser of the
estimated cost of repairing the damage or destruction as reasonably determined by Seller or any
deductible amount applicable to such damage or destruction under any casualty insurance coverage
maintained by Seller with respect to the Property.

12. Loss by Condemnation.

     In the event that prior to the Close of Escrow, the Property, or any material part thereof, is
subject to a taking by a public authority, then Buyer shall have the right, exercisable by giving
notice to Seller within 15 days after receiving written notice of such taking, either (a) to
terminate this Agreement, in which case neither Party shall have any further rights or obligations
hereunder, and the Deposit shall be returned to Buyer minus the Independent Consideration and minus
Buyer’s share of Escrow cancellation costs determined pursuant to Section 5(e), or (b) to
accept the Property in its then condition and proceed to close this transaction, and to receive an
assignment of all of Seller’s rights to any condemnation awards payable by reason of such taking.
If Buyer elects to proceed under clause (b) above, Seller shall not compromise, settle or adjust
any claims to such awards without Buyer’s prior written consent, which consent shall not be
unreasonably withheld. Seller agrees to give Buyer prompt notice of any taking of the Property
promptly after Seller receives notice of the same.

13. Default of Buyer.

     (a) PRIOR TO ENTERING INTO THIS TRANSACTION, BUYER AND SELLER HAVE BEEN CONCERNED WITH THE
FACT THAT SUBSTANTIAL DAMAGES WILL BE SUFFERED BY SELLER IN THE EVENT OF BUYER’S DEFAULT UNDER THIS
AGREEMENT. WITH THE FLUCTUATION IN LAND VALUES, THE UNPREDICTABLE STATE OF THE ECONOMY AND OF
GOVERNMENTAL REGULATIONS, THE FLUCTUATING MARKET FOR REAL ESTATE LOANS OF ALL TYPES, AND OTHER
FACTORS WHICH DIRECTLY AFFECT THE VALUE AND MARKETABILITY OF THE PROPERTY, IT IS REALIZED BY THE
PARTIES THAT IT WOULD BE EXTREMELY DIFFICULT AND IMPRACTICABLE, IF NOT IMPOSSIBLE, TO ASCERTAIN
WITH ANY DEGREE OF CERTAINTY THE AMOUNT OF DAMAGES WHICH WOULD BE SUFFERED BY SELLER IN THE EVENT
OF BUYER’S DEFAULT UNDER THIS AGREEMENT. THEREFORE, IN THE EVENT BUYER DEFAULTS IN ITS OBLIGATION
TO CLOSE THE PURCHASE OF THE PROPERTY, THE DEPOSIT SHALL BE PAID OR DELIVERED TO AND RETAINED BY
SELLER AS LIQUIDATED DAMAGES WHICH (SUBJECT TO PARAGRAPH (b) OF THIS SECTION 13) SHALL BE
SELLER’S SOLE REMEDY HEREUNDER BY REASON OF SUCH DEFAULT. THE PARTIES HERETO EXPRESSLY AGREE AND
ACKNOWLEDGE THAT THE AMOUNT OF THE DEPOSIT REPRESENTS THE PARTIES’ REASONABLE ESTIMATE OF SELLER’S
DAMAGES IN THE EVENT OF SUCH DEFAULT. BUYER AND SELLER EXPRESSLY AGREE THAT THE FOREGOING
LIQUIDATED DAMAGES PROVISION IS NOT INTENDED TO DEFINE OR LIMIT ANY INDEMNITY LIABILITY OF BUYER TO
SELLER UNDER THIS AGREEMENT OR ANY

21

 

PROVISION CONTAINED IN THIS AGREEMENT FOR THE PAYMENT OF ATTORNEYS FEES.

SELLER’S INITIALS: ________ BUYER’S INITIALS: ________

     (b) If Buyer shall default in its obligations hereunder and shall fail to cooperate fully in
the immediate cancellation of Escrow and the release to Seller of the Deposit as liquidated damages
(if not previously released) then, notwithstanding the Parties’ agreement to limit damages to
liquidated damages, and in addition to all other rights and remedies, the following provisions will
obtain: (i) In the event Buyer agrees to cancellation of the Escrow but not to the release of the
Deposit as liquidated damages (if not previously released), then the prevailing party in any
dispute shall be entitled to recover its costs of enforcement, including reasonable attorneys fees
(if Seller is the prevailing party in such dispute, Seller shall also be entitled to the Deposit as
liquidated damages); and (ii) In the event Buyer shall fail or refuse to agree to the cancellation
of the Escrow or shall commence an action for specific performance and/or file a notice of lis
pendens, then the prevailing party in any such dispute shall be entitled to recover its actual
damages (and Seller shall not be limited to liquidated damages), plus costs of enforcement
including reasonable attorneys fees.

14. Broker’s Commission.

     In connection with the transaction contemplated by this Agreement, at the Close of Escrow, (i)
Seller shall pay a broker’s commission to Jones Lang LaSalle pursuant to separate written
agreement, and (ii) Buyer shall pay a broker’s commission to Tierra Development Advisors pursuant
to separate written agreement. Said commissions shall be paid through Escrow at the close thereof.
With the exception of such commissions, Buyer and Seller each represent to the other that they
have not entered into any agreement or incurred any obligation which might result in the obligation
to pay a sales or brokerage commission or finder’s fee with respect to this transaction. Buyer and
Seller each agree to indemnify, defend, protect and hold the other harmless from and against any
and all losses, claims, damages, costs or expenses (including attorneys’ fees) which the other may
incur as a result of any claim made by any person to a right to a sales or brokerage commission or
finder’s fee in connection with this transaction to the extent such claim is based, or purportedly
based, on the acts or omissions of Seller or Buyer, as the case may be. The obligations of Buyer
and Seller under this Section 14 shall survive the Close of Escrow.

15. Seller Covenants. Seller agrees as follows:

     (a) From and after the Opening of Escrow until the Close of Escrow or earlier termination of
this Agreement, Seller will provide or cause to be provided substantially such services with
respect to the Property that have been provided by or on behalf of Seller in the past in accordance
with Seller’s customary practice. For the avoidance of doubt, Buyer acknowledges and agrees that
Seller shall not be obligated to make any replacements, alterations or improvements to the Property
or otherwise make any capital expenditures on account of the Property prior to Close of Escrow.

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     (b) Seller shall not knowingly encumber the Project from and after the Opening of Escrow until
the Close of Escrow or earlier termination of this Agreement, except as otherwise permitted under
this Agreement and except for liens which are dischargeable upon the payment thereof out of
Seller’s proceeds from the Escrow.

     (c) From and after the Opening of Escrow until the Close of Escrow or earlier termination of
this Agreement and except as otherwise provided in this Section 15(c) and in Section
19(b) below, Seller shall not amend any existing Lease or enter into a new Lease covering any
portion of the Property (each a “Lease Transaction”) nor shall Seller enter into a service contract
for the Property (each a “Service Contract”) which is not otherwise terminable at or prior to the
Close of Escrow, in each case without obtaining the prior written consent of Buyer, which consent
shall not be unreasonably withheld and which consent shall be deemed given if notice of disapproval
is not received by Seller within five (5) business days of delivering a request for consent to
Buyer. Notwithstanding the immediately preceding sentence, Seller may do either of the following
types of Lease Transactions without obtaining the prior written consent of Buyer (except as
otherwise provided below) so long as Seller promptly notifies Buyer of such Lease Transaction and
provides Buyer with a copy of the executed amendment: (i) extend the term of any existing Lease
which expires within six (6) months after Opening of Escrow for up to twelve (12) months after such
expiration date (provided further, however, that any change in the base rent during such extension
period must be based upon Seller’s reasonable determination of fair market rent), and (ii) amend
the Jazz Leases to either obtain a reduction in the portion of electricity costs allocable to the
landlord thereunder or to establish a fixed percentage reimbursement allocable to each of the Half
Dome Building and Conexant Towers (as such terms are defined in Section 19(b) below),
provided that Buyer’s consent shall be required if the percentage of the total electrical bill
allocated to the Half Dome Building exceeds 0.32%. Seller shall be responsible for any broker
commissions, tenant improvement costs and other expenses incurred in connection with a Lease
Transaction (collectively, “Leasing Costs”) which are associated with any Lease Transaction entered
into prior to the Opening of Escrow. Buyer shall be responsible for a prorata share of any Leasing
Costs which are associated with any Lease Transaction entered into after the Opening of Escrow
which has been approved by Buyer, based upon the percentage of the term of such Lease Transaction
occurring on and after the Close of Escrow (with Seller responsible for the balance).

     (d) At or prior to Close of Escrow, Seller shall terminate all existing Service Contracts at
Seller’s sole cost except (excluding utilities and waste disposal accounts in Seller’s name, which
Buyer shall place in its own name at the Close of Escrow). If any Service Contract covers both the
Property and areas located outside the Property, Seller shall have the right to amend such Service
Contract prior to the Close of Escrow (without the necessity of obtaining Buyer’s consent) so that
such Service Contract no longer covers the Property at Close of Escrow. Buyer acknowledges that
Seller currently reimburses Jazz for the cost of a service contract for maintenance of the central
plant equipment at the Jazz premises and that such obligation shall pass to Buyer at the Close of
Escrow as successor in interest to Seller under the Jazz Leases.

16. Notices.

     All notices, requests and demands to be made hereunder to the Parties hereto shall be made in
writing to the addresses set forth below and shall be given by any of the following

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means: (a) personal service; (b) electronic communication, including facsimile or e-mail
transmission ((provided, however, that notice is also given by one of the other
means set forth in Subparagraph 15(a), (c), or (d)); (c) certified or
registered mail, postage prepaid, return receipt requested; or (d) courier or delivery service.
Such addresses may be changed by notice to the other Parties given in the same manner as provided
above. Any notice, demand or request sent pursuant to either subsection 15(a), (b)
or (d) hereof shall be deemed received upon the actual delivery thereof, and, if sent
pursuant to subsection 15(c) shall be deemed received five (5) days following deposit in
the mail. Refusal to accept delivery of any notice, request or demand shall be deemed to be
delivery thereof. If any Party hereto is not an individual, notice may be made on any officer,
general partner or principal thereof. Notice to any one co-Party shall be deemed notice to all
co-Parties.

	 	 	 

	To Seller:

	 	Conexant Systems, Inc.

4000 MacArthur Blvd.

Newport Beach, California 92660

Attention: Mark Peterson, Esq., General Counsel

E-mail Address: Mark.Peterson@conexant.com

Facsimile No: (949) 483-5536
	 
	 	 
	With a copy to:

	 	Manatt, Phelps & Phillips, LLP

695 Town Center Drive, 14th Floor

Costa Mesa, California 92626

Attention: Steven Edwards, Esq.

E-mail Address: sedwards@manatt.com

Facsimile No.: 714-371-2550
	 
	 	 
	To Buyer:

	 	City Ventures, LLC

2850 Red Hill Avenue, Suite 200

Santa Ana, California 92705

Attention: Mark Buckland, President

E-mail Address: mark@cvassets.com

Facsimile No: (949) 250-1529
	 
	 	 
	With a copy to:

	 	Kenneth M. Kaplan, Esq.

361 Forest Avenue, Suite 204

Laguna Beach, California 92651-2148

E-mail Address: kaplankm@gmail.com

Facsimile No: (949) 715-0772
	 
	 	 
	To Escrow Holder:

	 	First American Title Insurance Company

5 First American Way

Santa Ana, California 92701

Attention: Patty Beverly

E-mail Address: pbeverly@firstam.com

Facsimile No: (714) 200-0519

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17. Lease of Space Within Half Dome Building. Effective as of the Close of Escrow, Seller
shall lease from Buyer (i) approximately 5,923 rentable square feet located within the building
commonly known as 4311 Jamboree Road (“Half Dome Building”) and designated on Exhibit H-1 attached
hereto as the “Data Center” (“Data Center Space”), and (ii) the area designated as “Generator/Haz
Waste Storage” on Exhibit H-1 attached hereto, consisting of 1,608 rentable square feet
(“Generator/Haz Waste Storage Area”), on the following terms:

     (a) The Data Center Space shall be covered by a separate lease (the “Data Center Lease”) and
the Generator/Haz Waste Storage Area shall be covered by a separate lease (“Flex Space Lease”).
Each of the Data Center Lease and Flex Space Lease (collectively, the “Half Dome Leases”) shall be
negotiated between the parties during the Feasibility Period but shall otherwise be consistent with
the terms set forth in this Section 17. If for any reason the form of either Half Dome
Lease is not approved by both parties in writing by January 22, 2010, either party may at any time
thereafter elect to terminate this Agreement by delivery of written notice to the other party.
Buyer acknowledges receipt of a draft Flex Space Lease and a draft Data Center Lease from Seller.
Upon agreement by both parties of the form of Data Center Lease and Flex Space Lease, such
agreed-upon forms shall be added to this Agreement as Exhibits H-2 and H-3, respectively, pursuant
to an amendment to this Agreement.

     (b) The Data Center Space and Generator/Haz Waste Storage Area shall be leased in their
current “as is” condition as of the Close of Escrow.

     (c) Base rent for the Data Center Space shall be $15 per square foot per month full service
gross. Base rent for the Generator/Haz Waste Storage Area shall be $0.75 per square foot per month
full service gross. There shall be no pass-throughs of common area charges, taxes, insurance,
utilities or any other operating or ownership costs incurred by Buyer as landlord in connection
with either Half Dome Lease.

     (d) The term of each Half Dome Lease shall be five (5) years commencing on the Close of
Escrow.

     (e) Buyer shall have the option to terminate either or both Half Dome Leases (or, in the
alternative and from time to time, reduce the size of the premises covered by the Flex Space Lease)
by giving Seller at least twelve (12) months prior written notice in each instance; provided,
however, that such required notice period shall be reduced to a minimum of six (6) months prior
notice in the case of any termination or reduction noticed by Buyer after the second (2nd)
anniversary of the Close of Escrow.

     (f) Seller shall have the option to terminate either or both Half Dome Leases (or, in the
alternative and from time to time, reduce the size of the premises covered by the Flex Space Lease)
by giving Buyer at least ninety (90) days prior written notice in each instance.

     (g) Seller shall have the right to sublease a portion of the Data Center Space to Jazz on such
terms as Seller may elect, all without notice to or the requirement to obtain the consent of Buyer.
Buyer and Seller shall cooperate after the Close of Escrow to obtain a signed amendment to the
Jazz Lease covering the Half Dome Building (“Jazz/Half Dome Lease”) which has the effect of
removing the from such Lease the portion of the Data Center currently leased by

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Jazz (consisting of approximately 748 square feet), so that a separate sublease can be
executed between Seller and Jazz with respect to such portion of the Data Center Space. Pending
execution of such amendment and new sublease and so long as the Data Center Lease remains in full
force and effect, Seller shall (i) lease the entire Data Center Space subject to Jazz’s rights
under the Jazz/Half Dome Lease, and (ii) observe and perform those obligations of Buyer under the
Jazz/Half Dome Lease (as successor landlord) arising from and after the Close of Escrow which
pertain directly and exclusively to the portion of the Data Center currently leased by Jazz. For
the avoidance of doubt, Seller does not and shall not be deemed to have assumed any of the
landlord’s obligations under Jazz/Half Dome Lease with respect to the balance of the premises
covered thereby (i.e., excluding the Data Center Space) on account of Seller’s obligations pursuant
to the immediately preceding sentence. All rent payable by Jazz on account of the Data Center
Space is hereby assigned by Buyer to Seller effective as of the Close of Escrow; in connection
therewith, (x) Buyer shall remit and pay over to Seller any such rental received by Buyer promptly
upon receipt by Buyer, (y) at or promptly following the Close of Escrow, Buyer shall notify Jazz in
writing that such rental is to be paid directly to Seller, and (z) Buyer shall cooperate with
Seller and use commercially reasonable efforts to collect the rent payable by Jazz on account of
the Data Center Space on Seller’s behalf pending execution of such amendment and new sublease by
Jazz. Buyer acknowledges that the Excluded Property is located in the Data Center and shall remain
the property of Seller following Close of Escrow. Upon request of either party, the other party
will execute a separate writing in commercially reasonable form which confirms the terms set forth
in this subparagraph (g).

     (h) Seller shall have an option (“Option”), exercisable only within the sixty (60) day period
immediately following the Close of Escrow (“Option Period”), to lease any remaining space in the
Half Dome Building including without limitation any space surrendered by Jazz on or after the Close
of Escrow (as applicable, the “Option Space”). The Option Space shall be offered to Seller at
$0.75 per square foot per month full service gross, for a term co-terminus with the then-remaining
term of the Half Dome Leases and otherwise on the same terms and conditions as are set forth in the
Flex Space Lease. In order to validly exercise the Option, Seller must notify Buyer in writing
(“Option Notice”) of such exercise prior to expiration of the Option Period, which Option Notice
shall (i) specify the portions of the Option Space which Seller desires to lease (“Optioned
Space”), (ii) specify the effective date of the lease of the Optioned Space (which effective date
shall not be later than the date which is 30 days after the date of such Option Notice), and (iii)
be accompanied by two (2) counterpart originals of an amendment to the Flex Space Lease each duly
executed by Seller (“Flex Space Lease Amendment”) which modifies the definition of the premises
covered thereby to include the Optioned Space and provides for an effective date of such
modification consistent with the effective date specified in such Option Notice. Provided that the
Option has been timely and validly exercised and the form of Flex Space Lease Amendment is
consistent with this subparagraph (h) and is otherwise in a commercially reasonable form, Buyer
shall execute the Flex Space Lease Amendment and return a signed counterpart original to Seller
within five (5) business days following Buyer’s receipt of the Flex Space Lease Amendment. In any
event, Buyer shall not enter into any lease or other form of occupancy agreement respecting the
Optioned Space (or any portion thereof) during the Option Period.

     (i) This Section 17 and the obligations of each party hereunder shall survive the
Close of Escrow.

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18. El Capitan Auditorium. From and after the Close of Escrow, Seller shall have the
right, at no additional cost, to use the auditorium currently located within the building commonly
known as 4321 Jamboree (“El Capitan Building”) for company meetings and other company functions
(e.g., Christmas holiday parties) provided that (i) Seller reserve each date with Buyer at least 30
days in advance, (ii) Seller may not use such auditorium more than twelve (12) times in any given
calendar year (each time for no more than one day), (iii) Buyer cannot guarantee that any specific
date desired by Seller will be available and Seller understands that its use of the auditorium is
subject to availability, (iv) Seller shall at all times maintain a policy of commercial general
liability insurance with a combined single limit not less than $2,000,000 and naming Buyer as an
additional insured, and (iv) Seller shall indemnify, defend and hold harmless Buyer from and
against any and all claims, losses, damages and expenses, including without limitation attorneys
fees and cost, arising from the use of such auditorium by Seller or its employees, agents and
invitees. Seller’s rights and duties contained in this Section shall survive the Close of Escrow
until the El Capitan Building is demolished or until such auditorium is otherwise converted by
Buyer into a use other than as an auditorium.

19. Electrical Pass-Throughs. The parties acknowledge that electrical power is currently
supplied to the Property via an electrical substation located at the most southerly point of the
Land and that there currently exists a grid of underground electrical conduit maintained within an
existing easement appurtenant to the Property (labeled as Parcel C in the legal description of the
Land attached hereto as Exhibit A) and created pursuant to Section 1.08 of that certain Reciprocal
Grant of Easements recorded November 6, 1972 in Book 10413, Page 573 (as amended by that certain
First Amendment to Reciprocal Grant of Easements recorded May 7, 1974 in Book 11137, Page 1004 and
by subsequent quitclaim deeds recorded in Book 11137, Page 1018 and Book 11137, Page 1022, all of
Official Records of Orange County) (the “Electrical Easement”). The electrical grid lying within
the Electrical Easement includes an extension running from a substation at the rear of the Half
Dome Building to the office towers leased by Seller and commonly known 4000 MacArthur Boulevard
(“Conexant Towers”) (located immediately to the south of the Land). Southern California Edison
(“SCE”) invoices Jazz on a monthly basis (the existing SCE account for the Property being held in
Jazz’s name) for the entire cost of the electricity supplied to the Property, including without
limitation electricity utilized within the portion of the Half Dome Building not occupied by Jazz
as well as electricity utilized by the Conexant Towers. Pursuant to the Jazz Lease (specifically,
Paragraph 4 of that certain Third Amendment to Lease dated September 1, 2006, with respect to the
Jazz Lease covering the El Capitan Building, hereinafter referred to as the “Jazz/El Capitan
Lease”), Seller and Jazz have agreed to apportion such monthly electrical bill by allocating a
fixed 89.2% of each such bill to Jazz and allocating the remaining 10.8% to Seller (regardless of
actual usage by each respective party). In light of the fact that Buyer will hold fee title to the
Half Dome Building after Close of Escrow and both Buyer and Seller will become electricity users on
the same SCE electricity account maintained by Jazz, the parties desire to provide for a
post-closing cost sharing arrangement with respect to the parties’ combined electricity usage under
such Jazz account.

     (a) Except as otherwise provided in subparagraph (b) below, from and after the Close of Escrow
until the Termination Date (defined below), Seller shall be responsible for ninety —seven percent
(97%) of the portion of each monthly electricity bill allocated to the landlord pursuant to the
Jazz Lease and Buyer shall be responsible for the remaining three percent (3%) of

27

 

such bill. For example, if after Close of Escrow Jazz receives from SCE an electrical bill in
the amount of $1,000,000 for July, 2010, Jazz will invoice Buyer as its landlord the sum of
$108,000 as Buyer’s share of such bill (10.8% of $1,000,000) and Buyer will in turn invoice Seller
for $104,760 (97% of $108,000). Seller agrees to reimburse Buyer for Seller’s share of each such
electricity bill within thirty (30) days following presentation of an invoice from Buyer together
with the backup documentation provided by Jazz to Buyer as successor landlord.

     (b) Seller shall have the continuing right (both prior to and after Close of Escrow) to
negotiate directly with Jazz for a reduction in the landlord’s share of such monthly electricity
bill (on account of the upcoming 2010 termination of Conexant’s master lease covering the East
Conexant Tower and the planned disengagement of the East Conexant Tower from the shared electrical
grid). If Seller is successful in obtaining such reduction, each party will pay its share of such
reduced landlord’s contribution amount based not upon the fixed percentages set forth in
subparagraph (a) above but based upon the historical actual electricity usage within the Half Dome
Building (that is, the portion not leased by Jazz pursuant to the Jazz/Half Dome Lease) and West
Conexant Tower, respectively, as reasonably determined by both parties. For example, using the
same $1,000,000 monthly electricity bill described in subparagraph (a) above, if Seller obtains a
reduction in the landlord’s contribution for such monthly electricity bill from 10.8% to 7% and the
parties both agree that, based upon historical usage, 65% of the collective historical electricity
consumption of the Half Dome Building and West Conexant Tower is attributable to the West Conexant
Tower, Jazz will invoice Buyer as its landlord the sum of $70,000 as Buyer’s share of such bill (7%
of $1,000,000) and Buyer will in turn invoice Seller for $45,500 (65% of $70,000). Buyer agrees to
cooperate with Seller in connection with Seller’s efforts to obtain a reduction in the landlord’s
share of such monthly electricity bill, including without limitation executing an amendment to the
Jazz Leases implementing any such agreed-upon reduction.

     (c) The right and duties of each party under this Section 19 shall survive the Close
of Escrow until the date (as applicable, the “Termination Date”) which is the earlier to occur of
(i) the date which is one hundred twenty (120) days after Seller delivers notice of termination
(“Electrical Termination Notice”) to Buyer (provided that Seller actually terminates its electrical
usage from such shared electrical grid on or prior to the expiration of such one hundred twenty
(120) day period), or (ii) the date Jazz surrenders possession of the El Capitan Building to Buyer,
provided that Buyer gives Seller at least thirty (30) days prior written notice of any such
surrender. Notwithstanding the immediately preceding sentence, (x) Seller may not deliver an
Electrical Termination Notice to Buyer prior to June 26, 2010 (the expiration date of the master
lease covering the West Conexant Tower), and (y) Seller may give a thirty (30) day Electrical
Termination Notice (instead of the 120-day notice provided above) to Buyer if the Jazz/Half Dome
Lease has previously been amended to reduce the landlord’s share of Jazz’s monthly electricity bill
and fixed percentage allocations of electrical pass-throughs to the Half Dome Building and West
Conexant Tower, respectively, have been approved by both parties in accordance with Section
19(b) above. At the request of either party which may be made at any time after the
Termination Date, the parties shall jointly execute and cause to be acknowledged and recorded an
agreement (in commercially reasonable form and content) partially terminating that portion of the
Electrical Easement currently located on the real property which includes the Conexant Towers.

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20. Miscellaneous Provisions.

     (a) Incorporation of Prior Agreements. This Agreement and the Confidentiality Agreement
contains the entire understanding of Buyer and Seller with respect to the subject matter hereof,
and supersedes all prior or contemporaneous written or oral agreements and understandings between
the Parties hereto pertaining to any such matter. No provision of this Agreement may be amended,
modified or supplemented or added to except by an agreement in writing, expressly stating that such
agreement is an amendment of this Agreement, signed by the Parties to this Agreement or their
respective successors in interest.

     (b) Buyer’s Right to Assign. Buyer shall have no right to assign or transfer any of its
rights or responsibilities hereunder to any person or entity without Seller’s prior written consent
which may be given or withheld in Seller’s sole and absolute discretion. Any attempt by Buyer to
assign or transfer any of its rights or responsibilities hereunder without Seller’s written consent
shall be void. Notwithstanding the foregoing, Buyer shall have the right to (i) assign this
Agreement to any of Buyer’s affiliates (provided, however, that Buyer shall not be released from
any of its obligations under this Agreement) and/or (ii) nominate any person to take title to the
Property at the Close of Escrow. As used in this Agreement, the term “affiliate” means a person or
entity controlling, controlled by or under common control with the person or entity in question,
and “control” and person or correlated words means the effective ability to control management
decisions of the person or entity in question.

     (c) Attorneys’ Fees. If either Party commences an action against the other to interpret or
enforce any of the terms of this Agreement or because of the breach by the other Party of any of
the terms hereof, the losing Party shall pay to the prevailing Party reasonable attorneys’ fees,
costs and expenses incurred in connection with the prosecution or defense of such action, whether
or not the action is prosecuted to a final judgment. For the purpose of this Agreement, the terms
“attorneys’ fees” or “attorneys’ fees and costs” shall mean the fees and expenses of counsel to the
Parties hereto, which may include in-house counsel and printing, photocopying and other expenses,
air freight charges, and fees billed for law clerks, paralegals, librarians and others not admitted
to the bar but performing services under the supervision of an attorney. The terms “attorneys’
fees” or “attorneys’ fees and costs” shall also include, without limitation, all such fees and
expenses incurred with respect to appeals, arbitrations and bankruptcy proceedings, and whether or
not any action or proceeding is brought with respect to the matter for which said fees and expenses
were incurred. The term “attorney” shall have the same meaning as the term “counsel.”

     (d) Time is of the Essence. Time is of the essence of this Agreement and the performance of
each term in which a time period is given for such performance.

     (e) Successors and Assigns. Subject to any limitations on the rights of Buyer to transfer its
interest in this Agreement set forth in Section 20(b), this Agreement shall be binding upon
and inure to the benefit of each of the Parties hereto and to their respective transferees,
successors, and assigns. In connection therewith, Buyer agrees to (i) provide actual notice of
Seller’s continuing rights under Sections 17 through 19 above to any successor in interest
to Buyer as to all or any portion of the Property, so long as (and to the extent that) such
continuing rights have not sooner been extinguished in accordance with this Agreement at the time
of a

29

 

transfer of the Property or any portion thereof to such successor, and (ii) provide in the
agreement of transfer to such transferee that such transferee shall similarly provide actual notice
of such continuing rights to its immediate successor in interest.

     (f) California Law; Choice of Forum. This Agreement shall be construed in accordance with and
governed by the internal laws of the State of California, without giving effect to any “conflict of
law” rules of such state. Buyer and Seller each acknowledge and agree that the Superior Court of
the State of California in and for the County and the associated federal and appellate courts shall
have exclusive jurisdiction to hear and decide any dispute, controversy or litigation regarding the
enforceability or validity of this Agreement or any portion thereof.

     (g) Counterparts. This Agreement may be executed in any number of counterparts, each of which
shall be deemed an original, but all of which, when taken together, shall constitute one and the
same instrument.

     (h) Interpretation. Wherever possible, each provision of this Agreement shall be interpreted
in such a manner as to be valid under applicable law, but, if any provision of this Agreement shall
be invalid or prohibited thereunder, such invalidity or prohibition shall be construed as if such
invalid or prohibited provision had not been inserted herein and shall not affect the remainder of
such provision or the remaining provisions of this Agreement. Section headings of this Agreement
are solely for convenience of reference and shall not govern the interpretation of any of the
provisions of this Agreement.

     (i) Construction. The language in all parts of this Agreement shall be in all cases construed
simply according to its fair meaning and not strictly against the party who drafted such language.

     (a) Exhibits. All Exhibits attached hereto are incorporated herein by reference and made a
part hereof for all purposes.

     (j) No Recordation. This Agreement shall not be recorded or filed in the public records of
any jurisdiction by either Party. Any attempt to do so shall be a breach of this Agreement.

     (k) Business Days. As used in this Agreement, a “business day” shall mean a day other than
Saturday, Sunday or any day on which banking institutions in the City of Los Angeles are authorized
by law or other governmental action to close. All other references to “days” in this Agreement
shall refer to calendar days.

     (l) Calculation of Days. If the date for any approval or disapproval or other notice by
either Buyer or Seller under this Agreement falls on a day other than a business day, then such
date shall automatically be extended to the next succeeding business day.

     (m) Due Execution. Each person whose signature is affixed hereto in a representative capacity
represents and warrants that he is authorized to execute the Agreement on behalf of and to bind the
Party on whose behalf his signature is affixed.

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     (n) Condition Precedent to Filing of Specific Performance Action Against Seller. As a
condition precedent to the filing of any specific performance action by Buyer against Seller on
account of a breach or alleged breach by Seller of its obligations to sell the Property to Buyer
pursuant to this Agreement (an “Action”), Buyer shall deposit with Escrow Holder prior to the
commencement of such Action, in immediately available funds, the sum of $2,900,000 (the “Lawsuit
Deposit”). The Lawsuit Deposit (i) shall not constitute a part of Seller’s liquidated damages in
the event of a default by Buyer under this Agreement; and (ii) shall remain in Escrow during the
pendency of the Action(s) and shall not be refunded to Buyer except in accordance with this
subparagraph. In the event final judgment shall have been entered in such Action in Buyer’s favor
(after exhaustion of all applicable appeals and the expiration of all applicable appeal periods),
the Lawsuit Deposit shall be applied toward the Purchase Price at Close of Escrow and Buyer shall
receive a credit against the Purchase Price for the attorneys fees and costs awarded to Buyer as
part of such Action. However, in the event the Action is dismissed or judgment entered in Seller’s
favor (after exhaustion of all applicable appeals and the expiration of all applicable appeal
periods), or in the event judgment in such action is entered in Buyer’s favor but Buyer thereafter
fails to close escrow, then in any such case Escrow Holder shall disburse to Seller out of the
Lawsuit Deposit an amount equal to Seller’s attorneys fees and costs incurred in such Action (in
addition to releasing the Deposit to Seller as liquidated damages pursuant to Section 13(a)
above) promptly following delivery of written demand by Seller to Escrow Holder (such demand to be
accompanied by backup documentation setting forth the attorneys fees and costs for which Seller
seeks reimbursement) and Escrow Holder shall thereafter deliver the balance of the Lawsuit Deposit
to Buyer. If Escrow Holder is unwilling to accept custody of the Lawsuit Deposit as provided
herein, then (in lieu of making such deposit with Escrow Holder) Buyer shall instead obtain a bond
in such amount with a licensed surety and deposit such bond with the court (or other applicable
adjudicator) prior to or concurrently with the filing or other initiation of such Action.

     (o) Joint and Several Obligations. In the event that this Agreement is executed by more than
one party as Buyer, all obligations of Buyer hereunder shall be deemed to be joint and several.

31

 

     IN WITNESS WHEREOF, Buyer and Seller have executed this Agreement as of the day and year first
above written.

	 	 	 	 	 
	 	“SELLER”

CONEXANT SYSTEMS, INC., a Delaware corporation

 	 
	 	By:  	/s/ Mark Peterson
 	 
	 	 	 	 
	 	Its:  	     Mark Peterson, Senior Vice President,
Chief Legal Officer and Secretary
	 
	 
	 	“BUYER”

CITY VENTURES, LLC, a Delaware limited liability

company

 	 
	 	By:  	/s/ R. Mark Bucklund
 	 
	 	 	 	 
	 	Its:   	R. Mark Buckland, President
 	 
	 	 	 	 
	 	 	 	 

S-1exv10w6w1

EXHIBIT 10.6.1

AMENDMENT TO PURCHASE AND SALE AGREEMENT

AND JOINT ESCROW INSTRUCTIONS

     THIS AMENDMENT TO PURCHASE AND SALE AGREEMENT AND JOINT ESCROW INSTRUCTIONS
(“Amendment”) is made as of February 1, 2010, by and between CONEXANT SYSTEMS, INC., a
Delaware corporation (“Seller”), and CITY VENTURES, LLC, a Delaware limited liability company
(“Buyer”).

RECITALS:

     A. Seller and Buyer previously entered into that certain Purchase and Sale Agreement and Joint
Escrow Instructions dated January 12, 2010 (the “Agreement”), concerning the Property.
Capitalized terms not otherwise defined herein shall have the meanings assigned to them in the
Agreement.

     B. Seller and Buyer have agreed upon the form of Data Center Lease and Flex Space Lease and
desire to add such forms to the Agreement as Exhibits H-2 and H-3, respectively.

AGREEMENT:

     NOW, THEREFORE, in consideration of the foregoing Recitals, the mutual covenants and
agreements contained in this Amendment, and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, Buyer and Seller hereby agree to amend the
Agreement as follows:

     1. Form of Data Center Lease. The form of Data Center Lease attached hereto as
Exhibit H-2 is hereby added to Exhibit H-2 of the Agreement. All references in the Agreement to
the Data Center Lease shall hereafter mean the form of Data Center Lease attached hereto as Exhibit
H-2.

     2. Form of Flex Space Lease. The form of Flex Space Lease attached hereto as Exhibit
H-3 is hereby added to the Agreement as Exhibit H-3. All references in the Agreement to the Flex
Space Lease shall hereafter mean the form of Flex Space Lease attached hereto as Exhibit H-3.

     3. Miscellaneous.

          (a) Effect of Amendment. Except to the extent the Agreement is modified by this
Amendment, the remaining terms and conditions of the Agreement shall remain unmodified and in full
force and effect. In the event of conflict between the terms and conditions of the Agreement and
the terms and conditions of this Amendment, the terms and conditions of this Amendment shall
prevail and control.

          (b) Entire Agreement. The Agreement, together with this Amendment, embodies the
entire understanding between Seller and Buyer with respect to its subject matter and can be changed
only by an instrument in writing signed by Seller and Buyer.

          (c) Counterparts. This Amendment may be executed in one or more counterparts,
including facsimile counterparts, each of which shall be deemed an original but all of which, taken
together, shall constitute one in the same Amendment.

1

 

     IN WITNESS WHEREOF, this Amendment has been executed as of the day and year first set forth
above.

	 	 	 	 	 
	 	“SELLER”

CONEXANT SYSTEMS, INC., a Delaware corporation 

 	 
	 	By:  	/s/ Mark Peterson
 	 
	 	Its:	          Mark Peterson, Senior Vice President, 	 
	 	 	Chief Legal Officer and Secretary
	 
	 
	 	“BUYER”

CITY VENTURES, LLC, a Delaware limited liability company

 	 
	 	By:  	/s/ R. Mark Bucklund
 	 
	 	Its:	          R. Mark Buckland, President 	 
	 	 	 	 

2

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