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HomeMy WebLinkAboutGilroy Gardens - Purchase and Sale Agreement PURCHASE AND SALE AGREEMENT BETWEEN ( CITY OF GILROY, a charter city and municipal corporation organized under the Constitution and laws of the State of California as Purchaser AND GILROY GARDENS FAMILY THEME PARK, INC., a Delaware nonprofit corporation as Seller As of January 22, 2008 \TMORELL\734864.15 011708-04706118 PURCHASE AND SALE AGREEMENT THIS PURCHASE AND SALE AGREEMENT (the "Agreement"), dated as of January 22,2008, is entered into by and between the CITY OF GILROY, a charter city and municipal corporation organized under the Constitution and laws of the State of California ("Purchaser"), and GILROY GARDENS FAMILY THEME PARK, INC., a Delaware nonprofit corporation fonnerly known as "Bonfante Gardens, Inc." ("Seller"). BACKGROUND A. Seller owns and operates a horticultural education and theme park known as Gilroy Gardens (the "Gilroy Gardens Park") located in Gilroy, California. B. defined). The Gilroy Gardens Park is located on a portion of the Real Property (as herein C. The parties believe that it is in their best interests that Seller sell to Purchaser, and Purchaser acquire from Seller, the Property (as herein defined), subject to and on the terms and conditions of this Agreement. D. The Real Property is encumbered by that certain Deed of Trust, Security Agreement and Fixture Filing with Assignment of Rents and Leases made as of December 1, 2000 (the "Senior Bond Deed of Trust"), being recorded on January 11,2001 as Instrument No. 15523372, in the Official Records of the County of Santa Clara, State of California, securing those certain City of Gilroy Senior Lien Project Revenue Bonds (Bonfante Gardens Theme Park Project), Series 2000, issued in the initial principal amount of $27,920,000.00 (the "Senior Lien Bonds"). E. U.S. Bank National Association is the Trustee under the Senior Lien Bond Trust Indenture dated December 1, 2000 (the "Trust Indenture"), which pertains to the Senior Lien Bonds (the "Bond Trustee"). . F. At the Closing, the parties further desire to lease the Real Property (as herein defined) to Seller, and to grant rights to Seller with respect to the use of the Personal Property and Intangible Property (both as defined herein), pursuant to the Lease described in this Agreement, subject to and on the terms of this Agreement. G. Seller has agreed to amend its Bylaws to enable the Council Director, as defined therein, to cause the dissolution of Seller when such Council Director is acting pursuant to a resolution of the City Council of the City of Gilroy. \TMORELL \734864.15 011708-04706118 -1- AGREEMENT 1. DEFINITIONS. In addition to the terms defined elsewhere in this Agreement, the following terms, when used in this Agreement (including the Exhibits attached hereto, and whether or not underscored), shall have the following meanings: "Accounts Receivable" means all of the rights of Seller to payments due and to become due for items delivered and/or services relating to Gilroy Gardens Park performed prior to the Closing Date. "Bond Escrow Holder" means the Bond Trustee or such other escrow agent appointed as is acceptable to Purchaser and Seller. "Books and Records" means all books, papers and records of Seller relating to the operation of the Gilroy Gardens Park. "Buildings and Improvements" means all of the buildings, improvements, fixtures, and structw:es owned by Seller and located on the land described on Exhibit A attached hereto, which specifically excludes the 110' by 120' tent structure being leased from Sprung Instant Structures, Inc., pursuant to a lease dated October 4, 2000, as amended on July 16, 2003, but otherwise includes all theme park rides, horticultural gardens, landscaping, water features and other environmental elements, theme park buildings, office, storage, training, recreational, meeting and other buildings, improvements, fixtures and structures, together with all guaranties and warranties; all drawings, plans, specifications (including as-builts), project manuals and the like relating to the Property. "Closing" means the closing of the purchase of the Property as described in Section 2.7. "Closing. Date" shall have the meaning set forth in Section 2.7.1. "Code" means the Internal Revenue Code of 1986, as amended. "Equipment Leases" means those leases now or hereafter in effect pursuant to which assets used in connection with the Gilroy Gardens Park are leased by Seller from others. "Excluded Property" shall have the meaning set forth in Section 2.2. "Gilroy Gardens Park" shall have the meaning set forth in the Recitals to this Agreement. "Immediately Available Funds" means electronic wire transfer to an account or accounts designated by the payee. "Intangible Property" means the following intangible assets and rights of Seller relating directly to the Gilroy Gardens Park: all indemnities, claims, third-party guaranties and warranties, all reports, test results, appraisals, maps and surveys relating to the Property, trademarks, trade names, trade dress, and domain names. \TMORELL\734864.15 011708-<l4 706118 -2- "Intangibles Assignment" means the Assignment of Intangible Property described tn Section 2.7.2.3. "Inventorv" means all inventory owned by Seller and intended for sale to the public or for consumption in the ordinary course of business in connection with the operation of the Gilroy Gardens Park, wherever located. "Lease" means that certain Lease for the Real Property to be effective as of the Closing between Seller, as tenant, and Purchaser, as landlord, in the form attached as Exhibit B hereto. "Leased Equipment" means the machinery, manufacturing equipment, tools, supplies, furniture, appliances, fixtures (including without limitation displays, whether or not attached to the walls, floors, ceilings or any framework), and all other items of personal property which are leased by Seller from others and used in connection with the Gilroy Gardens Park as of the Closing Date, including without limitation those described on the attached Exhibit C. "Liens" means any title defects, liens, security interests, mortgages, deeds of trust, encumbrances, reservations, charges, leases, licenses, encroachments, permits, easements, claims, or restrictions or other matters encumbering title to the Property. "Permitted Exceptions" means those liens, encumbrances and exceptions to title to the Property which are approved by Purchaser prior to the Closing in Purchaser's sole discretion. "Person" means an individual, corporation, partnership, limited liability company, limited liability partnership, unincorporated association, trust, joint venture or other organization or entity, including a governmental entity or any department, agency or political subdivision of such entities. "Personal Property" for the purposes of this Agreement means all of the electrical generating equipment and printing equipment utilized by Seller at the Gilroy Gardens Park, to be described with specificity to Buyer's reasonable satisfaction in the Bill of Sale. "Property" means all of the Real Property, Personal Property and Intangible Property. "Property Escrow Holder" means Chicago Title Company or such other escrow agent as is acceptable to Purchaser and Seller to act as the escrow agent with respect to the sale of the Property pursuant to this Agreement. "Purchase Price" shall have the meaning set forth in Section 2.3. "Real Property" means those certain parcels of land legally described on the attached Exhibit A, together with all rights and interests appurtenant thereto and all of the Buildings and Improvements thereon. "Service Contracts" means any and all service, supply, advertising, maintenance, management and other contracts affecting the Property (other than those recorded in the Official Records of Santa Clara County, California and constituting Permitted Exceptions). \TMORELL\734864.15 011708-04706118 -3- "Title Company" means Chicago Title Company. "Title Policy" means an extended coverage owner's title insurance policy insuring title to the Property vested in favor of Purchaser, in the amount of the Purchase Price, subject to no liens or encumbrances other than the Permitted Exceptions, and in such form and with such endorsements as is approved by Purchaser in Purchaser's sole discretion prior to the Closing. 2. PURCHASE AND SALE OF PROPERTY. 2.1 Purchase and Sale of Property. On and subject to the terms and conditions set forth in this Agreement, at Closing, Seller shall sell, assign, transfer, convey, set over and deliver to Purchaser, and Purchaser shall purchase, acquire and accept from Seller, all of the Property. 2.2 Excluded Property. Notwithstanding anything to the contrary contained in this Agreement, the following properties, assets and rights used in, or related to, the Gilroy Gardens Park (the "Excluded Property") are excluded from the Property and shall not be purchased by Purchaser, assigned to Purchaser or assumed by Purchaser at the Closing: 2.2.1 Bank accounts, cash, cash equivalents, notes receivable and employee advances in existence on the Closing Date, including without limitation, all funds held in any reserve or other account with the Bond Trustee, and all sums deposited by Seller with the Bond Trustee for principal and interest payments accruing after November 1, 2007, as required under the Trust Indenture (all such funds held by the Bond Trustee are hereinafter collectively referred to as "Trust Indenture Deposits"); 2.2.2 Prepaid taxes, expenses, advances and any tax refunds arising from taxes that accrued during any period prior to Closing; 2.2.3 Insurance policies, including any premium refunds in respect of such policies and claims covered by such policies arising prior to Closing (except as provided in Section 5.1.5); 2.2.4 Accounts Receivable; 2.2.5 Books and Records; 2.2.6 Inventory; 2.2.7 Vehicles and rolling stock, other than those which are part of or integrated into the theme park rides and attractions; 2.2.8 Leased Equipment and Seller's right, title and interest in Equipment Leases, it being the parties intention and agreement that any Equipment Leases in effect shall remain the obligation of Seller from and after the Closing and shall not bind Purchaser or the Property; \TMORELL\734864.15 011708-04706118 -4- 2.2.9 Seller's right title and interest in Service Contracts, it being the parties intention and agreement that all Service Contracts in effect as of the Closing shall remain the obligations of Seller from and after the Closing and shall not bind Purchaser or the Property; and 2.2.10 All other assets of Seller not included within the definition of the Property. Seller has advised Purchaser that the restaurants, shops and other facilities of the Gilroy Gardens Park are operated by Seller, through its current manager, and are therefore not currently subject to any concession agreements, leases or similar agreements. If any such concession agreements, leases or similar agreement were in effect as of the Closing, it is the parties intention and agreement that all such agreements would remain the obligations of Seller from and after the Closing and shall not bind Purchaser or the Property. 2.3 Purchase Price. 2.3.1 The purchase price for the Property (the "Purchase Price") shall be an amount equal to a sum which is sufficient to (i) cause the defeasance of all Senior Lien Bonds outstanding as of November 1, 2007, excluding Senior Lien Bonds (if any) which have been purchased by the City and tendered to the Bond Trustee for retirement on or before the date set forth in Section 2.7.1, as required to enable the execution, delivery and recordation of a Deed of Reconveyance of the Senior Bond Deed of Trust; and (ii) pay all costs and expenses incurred to effectuate the defeasance of the Senior Lien Bonds, including without limitation all escrow and other fees and costs charged by the Bond Trustee, bond counsel, verification agent and financial advisor. The defeasance of the Senior Lien Bonds, and amount of the Purchase Price, shall be set forth in an Escrow Agreement to be entered into among the Purchaser, the Seller and the Bond Trustee concurrently with the defeasance ofthe outstanding Senior Lien Bonds, in substantially the form heretofore filed with the Purchaser and the Seller (the "Escrow Agreement"). The portion of the Purchase Price described in clause (i) above shall be an amount which, together with the earnings to be received on the investment thereof in accordance with the Escrow Agreement, is sufficient to pay 100% of the principal of and interest (accrued from November 1, 2007) on the Senior Lien Bonds to and including November 1,2010, on which date the Senior Lien Bonds shall be redeemed in full in accordance with the Trust Indenture. The Seller hereby directs the Purchaser to pay the Purchase Price directly to the Bond Trustee for application in accordance with the Escrow Agreement. On or before the date set forth in Section 2.7.1, the Seller and the Purchaser shall execute and deliver the final form of the Escrow Agreement. It is recognized that the Purchaser may elect to acquire some of the outstanding Senior Lien Bonds directly from one or more bondholders, either prior to or concurrently with the defeasance of the remaining Senior Lien Bonds. In the event the Purchaser acquires any Senior Lien Bonds from an existing bondholder prior to the defeasance of the remaining Senior Lien Bonds, then Purchaser shall immediately tender such acquired Senior Lien Bonds to the Bond Trustee for retirement in accordance with the Trust Indenture, and such Senior Lien Bonds shall not be taken into account in computing the Purchase Price. 2.3.2 In Purchaser's sole and absolute discretion, on or after the date of this Agreement, but prior to the Closing, Purchaser may elect to advance or pay to Bond Trustee for Seller's account the amount of any periodic or installment reserves that are provided for under the tenns of the Senior Lien Bonds, with the effect and intention that any such advances shall serve to \TMORELL\734864.15 011708-04706118 -5- reduce the amount of the Purchase Price contemplated by Section 2.3.1 above. In the event that Purchaser advances or pays such amounts, but for whatever reason the Closing does not occur under this Agreement, Seller shall refund the full amount of the advance(s) to Purchaser on or before November 1,2008, without prior notice or demand. For the purposes of this Agreement, any sums advanced by Purchaser pursuant to this Section 2.3.2 shall not constitute Trust Indenture Deposits and shall not be payable to Seller at the Closing or otherwise. 2.4 Escrow. Concurrently with the parties' mutual execution and delivery of this Agreement, Seller and Purchaser shall open an escrow (the "Property Escrow") with the Property Escrow Holder, and open an escrow (the "Bond Escrow") with the Bond Escrow Holder pursuant to the terms of a Bond Escrow Agreement substantially in the form attached as Exhibit D. The Property Escrow Agreement and Bond Escrow Agreement shall be signed by the parties hereto concurrently with the execution of this Agreement, for delivery to the Property Escrow Holder and Bond Escrow Holder, respectively. The "Opening of Escrow" shall be the date upon which a fully executed copy of this Agreement has been delivered to the Property Escrow Holder and the Bond Escrow Holder. The Property Escrow Holder and Bond Escrow Holder shall give Seller and Purchaser written notice of the date of their receipt of a fully executed copy of this Agreement and the opening of the respective escrows. Property Escrow Holder is designated the "real estate reporting person" for purposes of Section 6045 of Title 26 of the United States Code and Treasury Regulation 1.6045-4 and any instructions or settlement statement prepared by Property Escrow Holder shall so provide. Upon the consummation of the transaction contemplated by this Agreement, Property Escrow Holder shall file a Form 1099 information return and send the statement to Seller to the extent required under the aforementioned statute and regulation. 2.5 Allocation of the Purchase Price. Purchaser and Seller agree that the Purchase Price shall be allocated in accordance with the attached Exhibit E. 2.6 Prorations and Other Payment Obligations. 2.6.1 Ad Valorem Taxes. Ad valorem taxes and assessments on the Real Property and personal property portion of the Property payable for the fIrst installment of the 2007-2008 tax year and all such taxes payable for tax years prior to 2007 shall be paid current by Seller on or before Closing. The obligation to make such payments and such adjustment shall survive the Closing. Such taxes and assessments shall not be prorated, and Seller shall be solely responsible for obtaining any refund after the Closing for taxes and assessments attributable to the post-Closing periog, to the extent Seller would be entitled to a refund. If ad valorem taxes and assessments on the Real Property for the tax year in which the Closing Date occurs are increased or if supplemental taxes are imposed on the Real Property relating to the pre-Closing period, Seller's obligation to make such payments shall survive Closing. There shall be no proration of prepaid taxes, assessments or of any other expenses relating to the Property as of the Closing, since Seller will continue to be obligated to pay such taxes, assessments and expenses after the Closing pursuant to the Lease. 2.6.2 Closing Costs. At or prior to Closing, Purchaser shall pay for the cost of the Title Policy, the escrow fees owed to the Property Escrow Holder and Bond Escrow Holder \TMORELL\734864.15 011708-04706118 -6- as of the Closing and all other closing costs relating to the defeasance of the Senior Lien Bonds and the acquisition of the Property by Purchaser. 2.7 The Closing. 2.7.1 Closing. The Closing of the purchase and sale of the Property shall take place on February 28, 2008, through the offices of the Property Escrow Holder, or on such other date as may be mutually designated by the parties in writing. Purchaser shall be entitled to possession of the Property at Closing, free of tenancies and any third-party claims to possession other than the rights of Seller pursuant to the Lease. 2.7.2 Closing Deliveries by Seller. Prior to Closing, in sufficient time for Closing to occur on the Closing Date, Seller shall deliver or cause to be delivered to Property Escrow Holder: 2.7.3 A Bill of Sale in substantially the form attached to this Agreement as Exhibit F, executed by Seller, conveying the Personal Property to Purchaser free and clear of any Liens; 2.7.4 A Grant Deed in substantially the form: attached to this Agreement as Exhibit G (the "Grant Deed") conveying the Real Property to Purchaser free and clear of any Liens, except for the Permitted Exceptions, executed and acknowledged by Seller; 2.7.5 An Assignment of Intangible Property in substantially the form attached to this Agreement as Exhibit H, executed by Seller ("Intangibles Assignment"); 2.7.6 Seller's payment for its share of the obligations described in Section 2.6.1 in Immediately Available Funds; 2.7.7 An affidavit certifying that Seller is not a "foreign person" for purposes of Section 1445 of the Code and meeting the Code Section 1455 Foreign Investment in Real Property Tax Act requirements for such certification, and a California Franchise Tax Form 593-C, certifying that Seller satisfies one or more of the requirements necessary to exempt Purchaser from any California withholding requirement under California Revenue and Taxation Code Section 18662, both executed by Seller; 2.7.8 Copies of the following, in each case certified as of the Closing Date by the Secretary of Seller: (i) resolutions of the board of directors of Seller authorizing the execution, delivery and performance of this Agreement; and (ii) the signature and incumbency of the officers of Seller authorized to execute and deliver this Agreement and the other instruments and documents to be executed and delivered by Seller hereunder; 2.7.9 Such further certificates, owner declarations, affidavits or other documents signed by Seller as may be reasonably requested by Property Escrow Holder or Bond Escrow Holder to close the escrows and issue the Title Policy to Purchaser at the Closing; 2.7.10 Amended Bylaws as provided in Section 4.2, below; anda ITMORELL\734864.15 -7- 011708-04706118 2.7.11 Two (2) execution counterpart originals of the Lease, executed by Seller, and one (1) counterpart original of the Memorandum of Lease required to be recorded following the Closing pursuant to the Lease, signed by Seller with signatures notarized for recording. 2.7.12 Closing Deliveries by Purchaser. Prior to Closing, in sufficient time for Closing to occur on the Closing Date, Purchaser shall deliver or cause to be delivered to Property Escrow Holder and/or Bond Escrow Holder: 2.7.13 The Purchase Price in. Immediately Available Funds shall be delivered to Bond Escrow Holder, to facilitate the defeasance of the Senior Lien Bonds, with written instructions directing the Bond Escrow Holder to cause Sun Trust Bank, a Georgia Bank, as Trustee under the Senior Bond Deed of Trust, to (i) execute and deliver to Property Escrow Holder, in recordable form, a Deed of Reconveyance of the Senior Bond Deed of Trust (the "Deed of Reconveyance"); and (ii) immediately distribute to Property Escrow Holder, for Seller's account, all Trust Indenture Deposits. 2.7.14 In the event Purchaser acquires any Senior Lien Bonds directly from a current bondholder, then Purchaser shall deliver the acquired Senior Lien Bonds to the Bond Escrow Holder for retirement. 2.7.15 Purchaser's payment for its share of the obligations described in Section 2.6.2; and 2.7.16 Two (2) counterpart execution originals of the Lease, executed by Purchaser, and one (1) counterpart original of the Memorandum of Lease required to be recorded following the Closing pursuant to the Lease, signed by Purchaser with signatures notarized for recording or otherwise attested to permit recording of such document. 2.7.17 Deed of Reconveyance. Prior to Closing, the Bond Trustee shall have delivered, in recordable form, a Deed of Reconveyance duly executed by Bond Trustee, as Trustee under the Senior Bond Deed of Trust. The Property Escrow Holder. shall cause the Deed of Reconveyance to be duly recorded in the Official Records of the County of Santa Clara, State of California. 2.7.18 Delivery of Documents and Funds Upon Closing. Upon the Closing, the Property Escrow Holder shall deliver to Purchaser a conformed copy of the recorded Grant Deed and Memorandum of Lease, the original Title Policy, fully executed originals of the Bill of Sale, the Intaiigibles Assignment, the Lease, a copy of the certifications described in Sections 2.7.2.5 and 2.7.2.6 above and a copy of the other documents deposited into the Bond Escrow and Property Escrow. Upon the Closing, the Property Escrow Holder shall deliver to Seller a conformed copy of the recorded Grant Deed and Memorandum of Lease, a fully executed original Lease, and a copy of the other documents deposited into the Bond Escrow and Property Escrow. In addition, upon the Closing, Property Escrow Holder shall deliver to Seller (by bank wire transfer) the Trust Indenture Deposits. 2.8 Further Documents or Necessary Action. Seller and Purchaser shall take all actions that may be reasonably necessary or appropriate to effectuate the transactions contemplated by this Agreement. On or after the Closing Date, if any further action is \TMORELL\734864.15 011708-04706118 -8- reasonably necessary or desirable to carry out the purposes of this Agreement to vest Purchaser, as appropriate, with full title to the Property, Seller shall take all such reasonably necessary or appropriate action. 3. AS-IS PURCHASE/TITLE REVIEW. 3.1 As-Is Purchase. Purchaser acknowledges and agrees that prior to the Closing, it shall have performed its own inspections of the Property as is may desire, including, without limitation, governmental laws and regulations to which the Property is subject, and, except for Seller's express representations, warranties and covenants contained in this Agreement, Purchaser shall accept the Property upon the basis of Purchaser's own review and determination of all matters pertaining to the Property. Purchaser acknowledges and agrees that the Property is to be sold and conveyed to and accepted by Purchaser in an "AS IS" condition with all faults, subject to Seller's express representations, warranties and covenants set forth in this Agreement. Seller does not make any representations or warranties of any kind whatsoever, either express or implied, with respect to the Property, except as expressly provided in this Agreement. 3.2 Title Review. Within two (2) days after the Effective Date, Purchaser may obtain from the Title Company an updated preliminary title report for the Property (the "Title Reoort"). Purchaser shall have until Closing to approve or disapprove any condition of title affecting the Real Property. If Purchaser disapproves any matter affecting title and Seller is either unable or unwilling to cause such disapproved exception to be removed, then Purchaser shall have the right to either proceed to close, in which case such disapproved exception(s), together with all other exceptions shown in the Title Report which were not disapproved of, shall be deemed Permitted Exceptions; or Purchaser may elect in writing to terminate this Agreement. In the event Purchaser elects to terminate this Agreement, then this Agreement shall be deemed cancelled, null and void, and each of the parties hereto shall be have no further rights, duties or obligations hereunder. 4. COVENANTS. 4.1 Conduct of Seller. 4.1.1 Ordinary Course. Until the Closing, Seller shall operate Gilroy Gardens Park only in the usual, regular and ordinary course, in substantially the same manner as previously conducted, and shall not, without the prior written consent of Purchaser (which consent shall not be unreasonably withheld), make any substantial change to its methods of management, purchase, sale, accounting or operationin-respeot-,of Gilroy Gardens Fark., Until ., the Closing Seller shall not sell, lease, transfer or encumber any of the Property, or modify any Lien, without the prior written consent of Purchaser (which consent may be withheld in Purchaser's sole and absolute discretion), and shall continue to insure the Property in the manner insured by Seller as of the Effective Date. 4.1.2 Access to Information. Until the Closing, Seller shall give Purchaser, and Purchaser's accountants, counsel and other representatives, reasonable access during normal business hours to the properties, books, records, officers, directors and employees of Seller and shall furnish promptly to Purchaser, upon written request, (i) a copy of each report, notice, return \TMORELL\734864.15 011708-04706118 -9- or other document filed or received by, or on behalf of, Seller relating to the Property or Gilroy Gardens Park; and (ii) all other information pertaining to Gilroy Gardens Park, the Property, and operations and personnel of Seller related thereto as Purchaser may request. 4.1.3 Access to Property. Until the Closing, Purchaser shall have the right, at Purchaser's expense, to: 4.1.3.1 Perform, or hire consultants to perform, a physical inspection of the Property. 4.1.3.2 Inspect, or hire consultants to inspect, the environmental condition of the Property, and to obtain and review, at Purchaser's sole election, soils, geology, structural and environmental and any other engineering reports and an ALTA survey of the Property. 4.1.3.3 Examine at the Property, Seller's office and/or the property manager's office, as the case may be, all books, records, reports, and files related to the ownership, leasing, maintenance and operation of the Property. Anyon-site inspections of the Property shall occur at reasonable times agreed upon by Seller and Purchaser after reasonable prior written notice to Seller and shall be conducted so as not to interfere unreasonably with the use of the Property by Seller. Seller may have a representative present during any such inspections. If Purchaser desires to do any invasive testing at the Property, Purchaser shall do so only after notifying Seller and obtaining Seller's prior written consent thereto, which consent shall not be unreasonably withheld or delayed. Purchaser agrees to protect, indemnify, defend and hold Seller harmless from and against any claims for personal injuries and property damage arising out of or resulting from the inspection of the Property by Purchaser or its agents or consultants, and notwithstanding anything to the contrary in this Agreement, such obligation to indemnify, defend and hold harmless Seller shall survive the Closing or any termination of this Agreement; provided however that in no event shall Purchaser have any liability as the result of Purchaser's discovery of any environmental or other condition or fact affecting or concerning the Property, or any liability for matters caused by the acts or negligence of anyone other than Purchaser and Purchaser's representatives. Purchaser shall keep the Property free and clear of any mechanic's liens or materialmen's liens arising out of Purchaser's entry onto the Property. - -. '.~- 4.2 Amendment of Bylaws. Priorto Closing, Seller shall cause its Bylaws to be amend.ed to 'be in the form of Exhibit I, attached hereto and incorporated herein. A 'certified copy of the Amended Bylaws shall be delivered to Purchaser at Closing. 5. CONDITIONS TO OBLIGATIONS OF PURCHASER AND SELLER. 5.1 Conditions to Obligations of Purchaser. Notwithstanding any other provision of this Agreement, the obligation of Purchaser to purchase the Property is subject to the satisfaction or waiver in writing in Purchaser's sole and absolute discretion, on or before the Closing Date, of the following conditions, which conditions are solely for Purchaser's benefit and can be unilaterally waived by Purchaser: \TMORELL\734864.15 011708-04706118 -10- 5.1.1 Representations and Warranties; Covenants. Seller shall have performed and complied with all material covenants, obligations and conditions required by this Agreement to be performed or complied with by Seller. 5.1.2 Consents and Approvals. All Persons whose consent or approval is required for the consummation of the transactions contemplated by this Agreement shall have granted such required consents or approvals in form and substance reasonably acceptable to Purchaser. 5.1.3 Litigation. There shall be no pending litigation against the Gilroy Gardens Park, the Property or Seller that, in the reasonable opinion of counsel for any party, has or could have any material adverse effect on the Gilroy Gardens Park, the Property or the enjoyment of the benefits of them by Purchaser. 5.1.4 Authorizations. All actions necessary to authori:z:e the execution, delivery and performance of this Agreement by Seller and the consummation of the transactions contemplated by this Agreement shall have been duly and validly taken by Seller. 5.1.5 Damage to or Destruction of the Property. There shall have been no material adverse change in the physical condition of the Property. In the event of any destruction of the Buildings or Improvements or other elements of the Property prior to Closing, Purchaser may elect, at its sole option to, (i) proceed to Closing and pay the Purchase Price pursuant to the terms of this Agreement and receive any insurance proceeds with respect to the Property so destroyed, free and clear of all Liens or interests of any third persons, and at such Closing Seller shall pay over to Purchaser any proceeds received by Seller with respect to such casualty and assign to Purchaser the right to all other insurance proceeds payable with respect to such casualty, or (ii) terminate this Agreement and the purchase of the Property contemplated by this Agreement. Seller shall provide Purchaser with written notice of any destruction of the Property or the Real Property or any portion thereof promptly after Seller becomes aware of the occurrence of such destruction. 5.1.6 Environmental Issues. Purchaser shall have received a Phase I Environmental Site Assessment consistent with ASTM Standard E1527-05 on each parcel of the Real Property, and as to each such parcel of the Real Property where Purchaser's environmental consultant so recommends, a current Phase II environmental assessment, including a written report thereof, and such reports shall not have specified any recognized environmental condition on or affecting any of the Real Property not acceptable to Purchaser in its sole discretion. Such assessments and reports 'shalt beat PurchaSer's sole cost. 5.1.7 Due Diligence. Purchaser shall have conducted a due diligence review of Seller, the Gilroy Gardens Park and the Property and shall be satisfied with the results thereof, in its sole and absolute discretion. The cost of such due diligence review shall be at Purchaser's sole cost. 5.1.8 Closing Deliveries. Seller shall have delivered to Property Escrow Holder and Bond Escrow Holder, as appropriate, all of the closing deliveries described in Section 2.7.2. \TMORELL\734864.15 011708-04706118 -11- 5.1.9 Title Policy. Title Company shall be irrevocably committed to issuing the Title Policy to Purchaser immediately upon the Closing. 5.2 Conditions to Obligations of Seller. Notwithstanding any other provision of this Agreement, the obligation of Seller to consummate the transactions contemplated by this Agreement is subject to the satisfaction or waiver in writing, on or before the Closing Date, of the following conditions, which conditions are solely for Seller's benefit and can be unilaterally waived by Seller: 5.2.1 Covenants. Purchaser shall have performed and complied with all material covenants, obligations and conditions required by this Agreement to be performed or complied with by Purchaser prior to or on the Closing Date. 5.2.2 Authorizations. All actions necessary to authorize the execution, delivery and performance of this Agreement by Purchaser and the consummation of the transactions contemplated by this Agreement shall have been duly and validly taken by Purchaser. 5.2.3 Closing Deliveries. Purchaser shall have delivered to Bond Escrow Holder and Purchase Escrow Holder, as appropriate, all of the closing deliveries described in Section 2.7.3. 5.2.4 Deed of Reconveyance. The Deed of Reconveyance shall have been duly recorded in the Official Records of the County of Santa Clara, State of California. 5.2.5 Trust Indenture Deposits. The Bond Trustee shall have actually delivered to the Property Escrow from the Bond Escrow all Trust Indenture Deposits, for Seller's account, such that the Property Escrow Holder is prepared to make payment thereof to Seller upon the Closing. 6. MISCELLANEOUS. 6.1 Further Assurances. Seller and Purchaser will, from time to time on or after the Closing Date, execute and deliver to the other parties all such further assignments, instructions, endorsements and other documents as Purchaser or Seller, as the case may be, reasonably requests in order to complete the transactions contemplated by this Agreement. 6.2 Amendments and Waivers. The provisions of this. Agreement may,.beameuded only by the written agreement of all of the parties to this Agreement. Any waiver, permit, consent or approval of any kind or character on the part of any party of any provisions or conditions of this Agreement must be made in writing and shall be effective only to the extent specifically set forth in such writing. 6.3 Successors and Assigns. This Agreement shall bind and inure to the benefit of the respective successors and assigns of the parties to this Agreement. Neither party may assign this Agreement without the other party's written consent; provided, however, that Purchaser may, without notice or consent, assign any or all of its rights under this Agreement to any entity affiliated with or controlled by Purchaser. The provisions of this Agreement and of the \TMORELL\734864.15 011708-04706118 -12- documents to be executed and delivered at Closing are and will be for the benefit of Seller and Purchaser only and are not for the benefit of any third party; and, accordingly, no third party shall have the right to enforce the provisions of this Agreement or of the documents to be executed and delivered at Closing. 6.4 Interpretation. The words "include," "includes" and "including" when used herein shall be deemed in each case to be followed by the words "without limitation." The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. Whenever used herein, the singular number shall include the plural, the plural shall include the singular, and the use of any gender shall be applicable to both genders. All references to monetary amounts are to currency of the United States of America. 6.5 Time of the Essence; Attorneys' Fees. Time is of the essence of this Agreement. In any suit, action or appeal to enforce this Agreement or any term or provision of this Agreement, or to interpret this Agreement, the prevailing party shall be entitled to recover its costs incurred, including reasonable attorneys' fees at trial or on appeal. 6.6 Severability. Whenever possible, each provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be prohibited by or invalid under applicable law, such provision will be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of this Agreement. 6.7 Notices. Any notices, requests, demands or other communications required or permitted to be sent under this Agreement shall be delivered personally, sent by overnight courier or mailed by registered or certified mail, return receipt requested, to the following addresses: If to Purchaser: City of Gilroy 7351 Rosanna Street Gilroy, CA 95020 Attn: Anna J atczak Tel: (408) 846-0212 Fax: (408) 846-0500 With a copy to: "', '.,~..' .~':;-,..,>..... <''',' -"-". ,.'. Berliner Cohen 10 Almaden Bbulevard,Suite 1100 San Jose, CA 95113 Attn: Andrew Faber, Esq. Tel: (408) 286-5800 Fax: (408) 998-5388 \TMORELL\734864.15 011708-04706118 -13- If to Seller: Gilroy Gardens Family Theme Park 3050 Hecker Pass Highway Gilroy, CA 95020 Attn: Bob Kraemer Tel: (408) 840-7100 Fax: (408) 846-6474 With a copy to: Miller, Morton, Caillat & Nevis, LLP 25 Metro Drive, 7th Floor San Jose, CA 95110 Attn: David Nevis, Esq. Tel: (408) 292-1765 Fax: (408) 292-4484 Either party may change the address to which notices are required to be delivered, by delivering written notice of such change given in accordance with this Section. 6.8 Governing Law; Forum. The validity, meaning and effect of this Agreement shall be determined in accordance with the laws of the State of California applicable to contracts made and to be performed in that state. Any action or proceeding brought by any party in connection with this Agreement shall be brought in the County of Santa Clara, California. 6.9 Brokers. Purchaser and Seller agree that no brokerage commISSIons are contemplated to be paid in connection with the transaction memorialized by this Agreement. Each party hereto accordingly agrees that if any person or entity makes a claim for brokerage commissions or finder's fees related to the sale of the Property by Seller to Purchaser, and such claim is made by, through or on account of any acts or alleg~ acts of said party or its representatives, said party will protect, indemnify, defend and hold the other party free and harmless from and against any and all loss, liability, cost, damage and expense (including reasonable attorneys' fees) in connection therewith. The provisions of this paragraph shall survive Closing or any termination of this Agreement. 6.10 Entire Agreement. This Agreement, together with those documents expressly referred to in this Agreement, constitutes the final agreement of the parties concerning the matters referred to in this Agreement, and supersedes all prior agreements and understandings. _ 6.11 Counterparts.. This Agreement may be executed in one or more counterparts, each of which shaH bean original, and all of which together shall constitute one agreement. Facsimile transmission of any signed original document, and retransmission of any signed facsimile transmission, shall be the same as delivery of an original. At the request of any party, the parties will confirm facsimile transmitted signatures by signing an original document. 6.12Negotiated Terms. Each party has had the opportunity to be advised by legal counsel and other professionals in connection with this Agreement, and each party has obtained such advice as each party deems appropriate. The parties agree that the terms and conditions of this Agreement are the result of negotiations between the parties and that this Agreement shall \TMORELL\734864.15 011708-0470611 B -14- not be construed in favor of or against any party by reason of the extent to which any party or its professionals participated in the preparation of this Agreement. 6.13 Computation of Time. In computing any period of time pursuant to this Agreement, the day of the act or event from which the designated period of time begins to run will not be included, and the last day of the period so computed will be included, unless it is a Saturday, Sunday or legal holiday recognized as such in California, in which event the period runs until the end of the next day which is not a Saturday, Sunday or such legal holiday. As used in the Agreement, "business day" shall mean a day which is not a Saturday, Sunday or legal holiday recognized as such in California. 6.14 Schedules and Exhibits. The following Schedules and Exhibits are attached to and fonn an integral part of this Agreement: EXHIBITS: Legal Description of Land Lease List of Leased Equipment Bond Escrow Agreement Price Allocation Bill of Sale Grant Deed Intangibles Assignment Amended Bylaws Exhibit A Exhibit B Exhibit C Exhibit D Exhibit E Exhibit F Exhibit G Exhibit H Exhibit I [Signatures appear on next page] \TMORELL\734864.15 011708.04706118 -15- The parties to this Agreement have executed this Agreement as of the date first set forth above. SELLER: GILROY GARDENS F AMIL Y THEME PARK, INC., a Delaware nonprofit corporation Name: Tit~: f\....t} ;d~...~~ Name: ']> At!<../ t!-/ j3 /.-. I-!/#l-Ioe,/;,.., Title: ,-<::ec47nty PURCHASER: By: By By ATTEST: \TMORELL\734864.15 011708.04706118 '-v1.-'\. Jl1-kzQK. - . . {rtriW\ Ct~ .k/nUr'\lSfi$ By APPROVED AS TO FORM: By (~;JL~ If. ~ Name: Linda A. Callon Title: City Attorney -16- EXHIBIT A LEGAL DESCRIPTION OF LAND (See attached pages.) \TMORELL\734864.15 011708-04706118 -1- Title No. 07-98702516-KV Locate No. CACTI7743-7743-2987-0098702516 LEGAL DESCRIPTION EXHIBIT "A" THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF GILROY, COUNTY OF SANTA CLARA, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOUOWS: PARCEL ONE: Beginning at the point of intersection of the Northeasterly line of Hecker Pass Highway, as said line was established by Parcel One in the Deed from the De Bell Corporation, a Corporation, to the State of California, dated June 12, 1957, recorded July 30, 1957 in Book 3855 Official Records, Page 512, Santa Clara County Records, with the Easterly line of that certain 24.07 acre tract of land described in the Deed from Jack De Bell et ux, to Louis A. Filice, et ux, dated September 15, 1954 recorded October 19, 1954 in Book 2986 Official Records, Page 527, Santa Clara County Records; thence from said Point of Beginning South 60 deg 42' 34" East along said Northeasterly line of Hecker Pass Highway for a distance of 599.78 feet; thence Southeasterly continuing along said last mentioned line along an arc of a curve to the left, tangent to the preceding course, with a radius of 1450.00 feet, through a central angle of 14 deg 52' 00", for an arc distance of 376.24 feet to the point of intersection thereof with the Southeasterly prolongation of a Westerly line of that certain 3.728 acre tract of land described in that certain final order of condemnation entered on November 3, 1958 in the Superior Court of the State of California, in and for the County of Santa Clara in that certain action entitled, ''The People of the State of California, Acting By and Through the Department of Public Works, Plaintiff, vs. Louis A. Felice et ai, Defendants Case No. 103483," a certified copy of which order was filed for record in the Office of the Recorder of the County of Santa Clara, State of California, on November 3, 1958 in Book 4219 Official Records, Page 701, Santa Clara County Records (shown as South 33 deg 16' 39" East 246.03 feet; thence North 33 deg 16' 30" West along said prolongation and the said Westerly line of the 3.728 acre tract for a distance of 376.66 feet to the Northwesterly corner of said 3.728 acre tract, said point also being the Southwesterly corner of that certain 1.567.acre tract of land described as Parcel Two in the Deed to said State of California above referred to; thence North 24 deg 18' 19" West along the Westerly line of said 1.567 acre tract for a distance of 94.17 feet, thence North 37 deg 18' 07" East continuing along said Westerly line of the 1.567 acre tract and its Northeasterly prolongation for a distance of 254.41 feet to the Northeasterly corner of that certain tract of land described in the Deed from the State of California, to the De Bell Corporation, a California Corporation, dated August 30, 1957, recorded September 27, 1957 in Book 3900 Official Records, Page 632, Santa Clara County Records; thence North 88 deg 39' 04" West along the Northerly line of land so described in the Deed to said De Bell Corporation for a distance of 433.45 feet to the Northwesterly corner thereof; thence South 1 deg 47' West along the Westerly line of land so described in the Deed to said De Bell Corporation for a distance of 64.46 feet to the Southwesterly corner thereof in the Northerly line of that certain 160.91 acre tract of land described as Parcel Three in the Deed from Jack De Bell et ux, to the De Bell Corporation, a California Corporation, dated October 26, 1956, recorded April 29, 1957 in Book 3786 Official Records Page 463, Santa Clara County Records; thence North 88 deg 13' West along said Northerly line of the 160.91 acre tract for a distance of 291.56 feet to the Northeasterly corner of the said 24.07 acre tract above referred to; thence South 23 deg 11' West along the Easterly line of said 24.07 acre tract for a distance of 130 feet more or less to the Point of Beginning. Excepting from the above described Parcel One, the following described parcel of land: Beginning at the point of intersection of the Northeasterly line of Hecker Pass Road, as said line was established by Parcell in the Deed from De Bell Corporation, a Corporation, to the State of California, dated June 12, 1957, recorded July 30, 1957 in Book 3855 Official Records, Page 512, Santa Clara Courity Records, with the Northwesterly line of that certain 160.91 acre tract of land described as Parcel Three in the Deed from Jack De Bell et ux, to the De Bell Corporation, a California Corporation, dated October 26, 1956, recorded April 29, 1957 in Book 3736 Official Records, Page 463, Santa Clara County Records; thence from said Point of Beginning South 60 deg 42' 34" East along said Northeasterly line of Hecker Pass Road, for a distance of 80.00 feet, thence leaving said last mentioned line and running North 29 deg 17' 26" East 170 feet, more or less, to the point of intersection thereof with the Southwesterly line of the Old Hecker Pass road; thence South 66 deg 15' East along said Southwesterly line of the Old Hecker Pass Road for a distance of 270.00 feet; thence leaving said last mentioned line and running North 23 deg 00' East 99.6 feet to the True Point of Beginning of 2 CLTA Preliminary Report Form - Modified (1l/17/06) EXHIBIT "A" (continued) litle No. 07-98702516-KV locate No. CACTI7743-7743-2987-0098702516 the tract of land to be described; thence from said True Point of Beginning North 67 deg DO' West 10.00 feet; thence at right angles North 23 deg 00' East 20.00 feet; thence at right angles South 67 deg DO' East 20.00 feet; thence at right angles South 23 deg 00' West 20.00 feet; thence at right angles North 67 deg 00' West 10.00 feet to the True Point of Beginning. APN 783-05-011 AND 013 PARCEL TWO: Beginning at the point of intersection of the Northeasterly line of Hecker Pass Road, as said line was established by Parcel 1 in the Deed from the De Bell Corporation, a Corporation, to the State of California, dated June 21, 1957, recorded July 3D, 1957 in Book 3855 Official Records, Page 512, Santa Clara County Records, with the Northwesterly line of that certain 160.91 acre tract of land described as Parcel Three in the Deed from Jack De Bell, et ux, to the De Bell Corporation, a California Corporation, dated October 26, 1956, recorded April 29, 1957 in Book 3736 Official Records, Page 463, Santa Clara County Records; thence from said Point of Beginning South 60 deg 42' 34" East along said Southeasterly line of Hecker Pass Road for a distance of 80.00 feet, thence leaving said last mentioned line and running North 29 deg 17' 26" East 170 feet, more or less, to the point of intersection thereof with the Southwesterly line of the Old Hecker Pass Road; thence South 66 deg IS' East along said Southwesterly line of the Old Hecker Pass Road for a distance of 270.00 feet; thence leaving said last mentioned line and running North 23 deg 00' East 99.6 feet to the True Point of Beginning of the tract of land to be described; thence from said True Point of Beginning North 67 deg DO' West 10.00 feet; thence at right angles North 23 deg DO' East 20.00 feet; thence at right angles South 67 deg 00' East 20.00 feet; thence at right angles South 23 deg DO' West 20.00 feet; thence at right angles North 67 deg DO' West 10.00 feet to the True Point of Beginning. APN 783-05-012 PARCEL THREE: A Portion of Parcels One and Four as shown on that Parcel Map recorded in Book 494 of Maps at Page 43, Santa Clara County, and a Portion of Lands of Blocher, I 361 O.R. 202, Santa Clara County Records, described as follows: Beginning at a Point on the West Line of said Parcel four, said Point also being at the Northeastern most corner of Parcel Three as shown on said Parcel Map said Point also lying on the West line of Lands of Nob Hill General Store, Inc., a California Corporation, as described in that Deed recorded in K805 of Official Records at page 1589, Santa Clara County, and proceeding along the Westerly, Southerly, Easterly and Northerly lines of said Parcel four and said lands of Nob Hill the following courses: 1. S 0 deg. 03' 40" W 778.37 feet 2. East 70.00 feet 3. S 17 deg. 45' 49" E 294.02 feet 4. West 160.00 feet 5. SO deg. 03' 40" W 418.87 feet 6. S 0 deg. 13' 40" W 4094.58 feet 7. East 1254.00 feet 8. N 0 deg. 14' E 4527.60 feet 9. N 0 deg. 02' W 1672.30 feet 10. N 67 deg. 23' W 262.00 feet 11. N 49 deg. 20' 3D" W 98.97 feet 12. N 31 deg. 26' W 154.34 feet 13. S 37 deg. 18' 09 W 85.48 feet 14. N 42 deg. 54' 55" W 294.28 feet 15. N 38 deg. 11' 51" W 55.00 feet 16. N 72 deg. 45' 58" W 83.84 feet 17. S 66 deg. 33' 05" W 57.31 feet 18. N 69 deg. 23' 35" W 301.68 feet to the Easternmost corner of those lands conveyed to the State of California by 3627 of Official Records at 3 ClTA Preliminary Report Form - Modified (11/17/06) EXHIBIT "Au (continued) Title No. 07-98702516-KV Locate No. CACTI7743-7743-2987-0098702516 page 1271, Santa Clara County; thence along the Southerly line of last said lands S 83 deg. 53' 57" W 44.13 feet; thence Northwesterly along a 1585 Foot radius curve to the right, from a tangent bearing N 82 deg. 52' 34" W., said curve having an interior angle of 18 deg. 50' 48", and a length of 521.36 feet to a point lying 91.84 feet Southerly along the said 1585 Foot radius curve from an angle point in last said Southerly line; thence S 0 deg. 09' W 419.62 feet; thence S 17 deg. 14' 00" E 810.00 feet; thence S 20 deg. 16' 11" W 194.80 feet to a point on the Northeasterly line of said Parcel Three, last said point being N 69 deg; 43' 49" W 288.41 feet from the Northeasterly corner of said Parcel Three; thence S 69 deg. 43' 49" E. 288.41 feet to the Point of Beginning. Excepting therefrom the following described parcel of land: Beginning at the Northeastern most corner of said Parcel Four and proceeding S 00 deg. 09' 33" E along the East line of said Parcel Four, 269.81 feet to the Westerly terminus of the Northeast line of a Pedestrian/Equestrian Easement as shown on Parcel One on that Parcel Map recorded in Book 663 of Maps at Pages 13 and 14, Santa Clara County Records; thence N 30 deg. 15' W 412.10 feet more or less to a point on the Northeasterly line of said Parcel Four; thence S 67 deg. 23' E 224.09 feet along last said line to the Point of Beginning. Also excepting therefrom "Parcel C" as described in that certain Certificate of Compliance recorded April 14, 1998 as Instrument No. 14139227, Official Records of Santa Clara County, and being more particularly described as follows: A portion of real property located in the County of Santa Clara, State of California, described as follows: All of Parcel Four as shown on that Parcel Map recorded in Book 494 of Maps at Page 43, Santa Clara County Records, Except therefrom the following: Beginning at the Northeasternmost corner of said Parcel Four and proceeding S 00009'33" E along the East line of said Parcel Four, 269.81 feet to the Westerly terminus of the Northeast line of a Pedestrian/Equestrian Easement as shown on Parcel One on that Parcel Map recorded in Book 663 of Maps at Pages 13 and 14, Santa Clara County Records; thence N 30015' W 412.10 feet more or less to a point on the Northeasterly line of said Parcel Four; thence S 67023' E. 224.09 feet along last said line to the point of beginning. APN 810-17-026, 810-17-029 PARCEL FOUR: A portion of Parcels Two and Three as shown on that Parcel Map recorded in Book 494 of Maps, at page 43, Santa Clara County Records, lying in Santa Clara County, California, described as follows: Beginning at a point on the South line of said Parcel Two, said point lying S 89 deg. 35' 00" W 145.44 feetfrom the Southeasterly angle point in said Parcel Two, last said angle point being produced by the courses S 17 deg. 40' 40" W 105.66 feet and S 89 deg. 35' DO" W 428.05 feet as shown on said Map; thence along the following courses: COURSE NO. 1. N 19 deg. 21' 40" E 417.99 feet 2. N 76 deg. 19' 19" W 13.90 feet 3. N 17 deg. 40' 40" E 1089.46 feet 4. N 64 deg. 27' 00" E 208.60 feet to a point on the Northeasterly line of said Parcel Two, said point lying N 69 deg. 43' 49/1 W 9.45 feet from the Northeastern corner of said Parcel Two; thence along the Northestern line of said Parcels Two and Three and along the Easterly and Southerly line s of said Parcel Three the fOllowing courses: 4 CLTA Preliminary Report Form - Modified (11{17{05) EXHIBff"A" (continued) "TItle No. 07-98702516-KV Locate No. CACfI7743-7743-2987-0098702516 COURSE NO. 5. S 69 deg. 43' 49" E 689.53 feet 6. S. 0 deg. 03' 40" W 778.37 feet 7. East 70.00 feet 8.517 deg. 45' 49" W 294.02 feet 9. West 160.00 feet 10. SO deg. 03' 40" W 350.00 feet 11. N. 78 deg. 40' 00" W 1134.00 feet 12. S 17 deg. 40' 40" W 105.66 feet, and 13. S 89 deg. 35' 00" W 145.44 feet to the point of beginning. APN 810-17-014, 015, 021, 024 AND 025 PARCEL FIVE: A non-exclusive easement for Ingress and Egress and for the installation and maintenance of public utilities, appurtenant to the above described parcels, over a strip of land 60.00 feet in width, lying 10.00 feet Westerly of and 50.00 feet Easterly of the following described line: Beginning at a point in the Southwesterly line of the State Highway IV-SCI- 32D-1957, distant thereon South 60 deg 14' 20" East 232.40 feet from a concrete monument at Station 325 57.01 E. C. of said Highway and running thence South 57 deg 45' 40" West 161.79 feet; South 41 deg 31' 40" West 262.30 feet; South 31 deg 44' 40" West 311.70 feet; South 3 deg 19' 10" West 344.34 feet; South 23 deg 29' 50" East 166.48 feet; thence Southwesterly 150 feet, more or less, to a paint which bears South 71 deg 14' 02" East 94.02 feet and North 19 deg 29' 13" East 110.0 feet from the most Easterly corner of Parcell, as said Parcel is shown upon that certain Map entitled, "Record of Survey being a portion of the solis Rancho", which Map was filed for record in the Office of the Recorder of the County of Santa Clara, State of California on December 7, 1967 in Book 231 of Maps, at Page 22; thence South 19 deg 29' 13" West 110.00 feet and the terminus of said easement, said easement is appurtenant to and for the Benefit of Parcels Three, Four, Seven and Twelve. PARCEL SIX: A non-exclusive easement for Ingress and Egress and for the installation and maintenance of public utilities and for water pipe lines, appurtenant to the above described parcels, over an existing roadway 60.00 feet in width, the center line of which is described as follows: Beginning at the point of intersection of the Easterly line of that certain 160.91 acre tract of land described as Parcel Three in the Deed from Jack De Bell, et ux, to the De Bell Corporation, dated October 26, 1956, recorded April 29, 1957 in Book 3786 Official Records, page 463, Santa Clara County Records, with the Southwesterly line of Hecker Pass Road, as said line was established by Parcel One in the Deed from the De Bell Corporation, to the State of California dated June 12, 1957, recorded July 30, 1957 in Book 3655 Official Records, page 512, Santa Clara County Records; thence from said point of beginning South 0 deg OS' 19" West along said Easterly line of the 160.91 acre tract for a distance of 1370.09 feet to the True Point of Beginning of the easement to be described; thence from said True Point of Beginning North 69 deg. 43' 49" West 1460.17 feet to the terminus of said easement, said easement is appurtenant to and for the Benefit of Parcels Three, Four and Twelve. Excepting therefrom all that portion thereof lying within the above described Parcels Three and Four. PARCEL SEVEN: 5 CLTA Preliminary Report Form - Modified (11/17/06) EXHIBIT "Au (continued) Title No. 07-98702516-KV Locate No. CACD7743-7743-2987-0098702516 All of Parcel Two, as shown upon that certain Map entitled, "Parcel Map, being a portion of the Las Animas Rancho", which Map was filed for record in the Office of the Recorder of the County of Santa Clara, State of California on October 12, 1993 in Book 650 of Maps, at Page 49. APN 810-18-010 and 011 PARCEL EIGHT: An easement 40 feet in width for ingress and egress and public utilities the centerline of said easement described as follows: Commencing at a point in the centerline of that 60 foot wide easement recorded in Book 7981 of Official Records at Page 56, Santa Clara County Records, said point being the northeast terminius of that course shown as No. 16 on that Parcel Map recorded in Book 494 of Maps, at Page 43, Santa Clara County Records and proceeding S 20016' 11" W 30.00 feet to a point on the southwesterly line of said easement to the Point of Beginning; thence from said Point of Beginning S 27003' W 28.19 feet to station "A"; thence along a curve to the right with a radius of 40 feet at an angle of 60.00 feet for a distance of 41.89 feet to station "B"; thence S 87003' W 28.00 feet to station C; thence along a curve to the left with a radius of 85.47 feet at an angle of 70033'08" for a distance of 105.24 feet to station "D"; thence S 16029'52"W for a distance of 224.83 feet to station "E"; thence on a curve to the left with a radius of 457.22 feet at an angle of 18037'52" for a distance of 148.68 feet to station "P'; thence S 2008' E for a distance of 32.29 feet to station "G"; thence on a curve to the right with a radius of 196.58 feet at an angle of 41046' for a distance of 143.30 feet to station "H"; thence S 39038' W for a distance of 151.72 feet to station Iff'; thence on a curve to the left with a radius of 250.00 feet at an angle of 45.000 for a distance of 196.34 feetto station "J"; thence S 5022' E 110.00 feet to station "K"; thence on a curve to the right with a radius of 414.00 feet at an angle of 21010' for a distance of 152.94 feet to station "L"; thence S 15048' W 93.00 feet to station "M"; thence on a curve to the left with a radius of 243.00 feet at an angle of 30031' for a distance of 129.42 feet to station "N"; thence 5 14043' E 456.60 feet more or less to a paint on the south line of parcel two of said parcel map, last said point being 152.52 feet westerly from the southerly terminus of that course, (5 0025'00" E 89.33 feet), as shown on said parcel map, to station "a", said easement is appurtenant to and for the Benefit of Parcel Seven. PARCEL NINE: An easement for ingress and egress described as follows: Beginning at the point of beginning of the above described 40 foot wide easement and running 5 69043'49" E 20.00 feet to the easterly line of said 40.00 foot wide easement being the true point of beginning; thence 5 69043'49" E along the southwesterly line of the 60.00 foot easement (7981-or-56) 30 feet; thence 80 feet more or less southwesterly to the mid point (on the southeast line of above described 40 foot easement) of the 40.00 foot radius (centerline) curve; thence northeasterly along the southeasterly line of said 40.00' foot wide easement above described 60 feet more or less to true point of beginning, said easement is appurtenant to and for the Benefit of Parcel Seven. PARCEL TEN: A 10 foot wide easement for ingress and egress. The easterly line of said easement described as follows: Commencing at above station "L" and running 5 15048'W 40.00 feet and N 74012' W 20.00 feet to the True Point of Beginning; thence 5 15048' W 53.00 feet; thence southerly along a 263.00 foot radius curve to the left, having an interior angle of 17025'42" a distance of 80.00 feet to the terminus of said easement, said easement is appurtenant to and for the Benefit of Parcel Seven. 6 CLTA Preliminary Report Form - Modified (11/17/06) EXHIBIT "A" (continued) TItle No. 07-98702516-KV Locate No. CACTl7743-7743-2987-0098702516 PARCEL ELEVEN: An easement for ingress-egress said easement described as follows: Commencing at said station "0", and proceeding S 89035' W along the Southerly line of Parcel Two as shown on Parcel Map recorded in Book 494 of Maps at Page 43, Santa Clara County Records 20.64 feet to the True Point of Beginning; thence continuing S 89035' W 25.00 feet; thence N 37026'15" E 30.68 feet to a point on the Southwesterly line of the 40 foot wide easement above described; thence S 14043' E 25.00 feet to the Point of Beginning, said easement is appurtenant to and for the Benefit of Parcel Seven. PARCEL TWELVE: A Portion of Parcels One and Four as shown on that Parcel Map recorded in Book 494 of Maps at Page 43, Santa Clara County, and a Portion of Lands of Blocher, 1361 O.R. 202, Santa Clara County Records, described as follows: Beginning at a Point on the West Line of said Parcel four, said Point also being at the Northeastern most corner of Parcel Three as shown on said Parcel Map said Point also lying on the West line of Lands of Nob Hill General Store, Inc., a California Corporation, as described in that Deed recorded in K805 of Official Records at page 1589, Santa Clara County, and proceeding along the Westerly, Southerly, Easterly and Northerly lines of said Parcel four and said lands of Nab Hill the following courses: COURSE NO. 1. SO deg. 03' 40" W 778.37 feet 2. East 70.00 feet 3. S 17 deg. 45' 49" E 294.02 feet 4. West 160.00 feet 5. SO deg. 03' 40" W 418.87 feet 6. S 0 deg. 13' 40" W 4094.58 feet 7. East 1254.00 feet 8. N 0 deg. 14' E 4527.60 feet 9. N 0 deg. 02' W 1672.30 feet 10. N 67 deg. 23' W 262.00 feet 11. N 49 deg. 20' 30" W 98.97 feet 12. N 31 deg. 26' W 154.34 feet 13. S 37 deg. 18' 09 W 85.48 feet 14. N 42 deg. 54' 55" W 294.28 feet 15. N 38 deg. 11' 51" W 55.00 feet 16. N 72 deg. 45' 58" W 83.84 feet 17. S 66 deg. 33' 05" W 57.31 feet 18. N 69 deg. 23' 35" W 301.68 feet to the Easternmost corner of those lands conveyed to the State of California by J627 of Official Records at page 1271, Santa Clara County; thence along the Southerly line of last said lands S 83 deg. 53' 57" W 44.13 feet; thence Northwesterly along a 1585 Foot radius curve to the right, from a tangent bearing N 82 deg. 52' 34" W., said curve having an interior angle of 18 deg. 50' 48", and a length of 521.36 feet to a point lying 91.84 feet Southerly along the said 1585 Foot radius curve from an angle point in last said Southerly line; thence 5 0 deg. 09' W 419.62 feet; thence S 17 deg. 14' 00" E 810.00 feet; thence S 20 deg. 16' 11" W 194.80 feet to a point on the Northeasterly line of said Parcel Three, last said point being N 69 deg. 43' 49" W 288.41 feet from the Northeasterly corner of said Parcel Three; thence 5 69 deg. 43' 49" E. 288.41 feet to the Point of Beginning. Excepting therefrom the the following described parcel of land: 7 CLTA Preliminary Report Form - Modified (11/17/06) EXHIBIT "Au (continued) TItle No. 07-98702516-KV Locate No. CACTI7743-7743-2987-0098702516 Beginning at the Northeastern most corner of said Parcel Four and proceeding 500 deg. 09' 33" E along the East line of said Parcel Four, 269.81 feet to the Westerly terminus of the Northeast line of a Pedestrian/Equestrian Easement as shown on Parcel One on that Parcel Map recorded in Book 663 of Maps at Pages 13 and 14, Santa Clara County Records; thence N 30 deg. 15' W 412.10 feet more or less to a point on the Northeasterly line of said Parcel Four; thence S 67 deg. 23' E 224.09 feet along last said line to the Point of Beginning. Excepting therefrom all that portion lying Westerly of the Westerly line of said Parcel 4 And, in addition thereto, the following parcel of land designated as 'Transfer Parcel" on the accompanying plat entitled "Exhibit B", being more particularly described as follows: A portion of Parcel B, as said Parcel is described in that certain Certificate of Compliance for Lot Line Adjustment filed for record as Document Number 14139227, Official Records of Santa Clara County, California, being more particularly described as follows: BEGINNING at southwesterly corner of said Parcel B, said point also being the southerly terminus of the course designated as S 00 02" E 1672.30 feet on that certain Lot Line Adjustment Parcel Map filed for record in Book 494 of Maps, at Page 43, Records of Santa Clara County, California, and the northwest corner of Lot 61, as said Lot 61 is shown on the map of Tract 9365, Eagle Ridge, filed for record in Book 748 of Maps, at Page 20, Records of Santa Clara County, California; thence running along the common line of said Parcel B and Parcel C 1.) N 000 09' 33" W, a distance of 1,402.67 feet to the northwesterly corner of said Parcel B; thence leaving said common line and running along the northerly line of said Parcel B 2.) S 310 08' 00" E, a distance of 262.40 feet to the beginning of a curve to the left having a radius of 193.00 feet; thence continuing along said northerly line 3.) Southeasterly along said curve, through a central angle of 49007' 00", a distance of 165.45 feet to the beginning of a compound curve to the left having a radius of 632.00 feet; thence continuing along said northerly line 4.) Easterly along said curve, through a central angle of 230 25' DO", a distance of 258.30 feet; thence continuing along said northerly line 5.) N 76020' 00" E, a distance of 499.27 feet to the beginning of a curve to the right having a radius of 1,360.00 feet; thence continuing along said northerly line 6.) Easterly along said curve, through a central angle of 130 40' 00"; a distance of 324.40 feet; thence continuing along said northerly line 7.) East, a distance of 88.59 feet to the beginning of a curve to the left having a radius of 65.00 feet; thence continuing along said northerly line 8.) Easterly along said curve, through a central angle of 04037' 09"; a distance of 5.24 feet; thence continuing along said northerly line 9.) S 000 36' 00" E, a distance of 0.34 feet; thence continuing along said northerly line 10.) S 890 59' 56" E, a distance of 240.84 feet to the northeasterly corner of said Parcel B; thence leaving said northerly line and running along the easterly line of said Parcel B 8 CLTA Preliminary Report Fonn . Modified (11/17{06) EXHIBIT "A" (continued) Title No. 07-98702516-KV Locate No. CACTI7743-7743-2987-0098702516 11.) 5 00008' 00" E, a distance of 304.39 feet; thence leaving said easterly line 12.) 5 870 59' 43" W, a distance of 330.76 feet; thence 13.) N 890 02' 02" W, a distance of 222.92 feet; thence 14.) 5 840 51' 07" W, a distance of 357.84 feet; thence 15.) 5 760 21' 10" W, a distance of 402.59 feet; thence 16.) N 880 13' 32" W, a distance of 194.26 feet; thence 17.) N 630 29' 09" W, a distance of 72.82 feet; thence 18.) 5 210 41' 39" W, a distance of 190.51 feet; thence 19.) 5 000 46' 42" E, a distance of 146.48 feet; thence 20.) 5 090 19' 49" E, a distance of 120.58 feet; thence 21.) 5 020 29' 27" W, a distance of 36.13 feet; thence 22.) 5 040 18' 56" W, a distance of 178.81 feet; thence 23.) 5 000 07' 43" W, a distance of 178.08 feet to the southerly line of said Parcel B, also being the northerly line of said Lot 61 of Tract 9365; thence running along said southerly line of Parcel B and northerly line of Lot 61 24.) N 89" 52' 17" W, a distance of 48.11 feet to the POINT OF BEGINNING. Being Parcel C as described in the Certificate of Compliance Recorded May 2, 2005 as Instrument No. 18348300. APN 810-18-002; 810-19-005, 007, 010, 011, and 014 9 CLTA Preliminary Report Fonn - Modified (11/17/06) EXHIBIT B LEASE (See attached pages.) \TMORELL\734864.15 011708-04706118 -1- SINGLE TENANT LEASE (Gilroy Gardens Property, Gilroy, California) THIS SINGLE TENANT LEASE ("Lease"), dated e:f- .:z L, 2008 (the "Commencement Date"), is entered into by and between GILROY GARDENS FAMILY THEME PARK, INC., a Delaware nonprofit corporation formerly known as "Bonfante Gardens, Inc." ("Tenant") and the CITY OF GILROY, a municipal corporation ("Landlord"). RECITALS WHEREAS, immediately prior to the effectiveness of this Lease, Landlord purchased from Tenant that certain real property located in Gilroy, California, as more particularly described in Exhibit A attached hereto (the "Land"), the buildings and improvements located on the Land (the "Improvements"), and certain other related assets (the Land, Improvements and other assets acquired by Landlord pursuant to the Sale Contract being the "Property"), all pursuant to and in accordance with the provisions of that certain Purchase and Sale Agreement, dated for reference purposes as of January 22, 2008, by and between Tenant, as "Seller," and Landlord, as "Purchaser" (the "Sale Contract"). WHEREAS, the Land is improved with a horticultural education and theme park known as "Gilroy Gardens," which was developed and constructed by Tenant, which has been operated by Tenant from its inception, and which shall continue to be operated by Tenant during the Term, subject to and under the terms ofthis Lease. WHEREAS, this Lease is being entered into as is contemplated by the provisions of the Sale Contract. WHEREAS, Landlord and Tenant are mutually desirous of setting forth herein their understanding with respect to the use and operation of the Premises (defined below) and the Licensed Property (defined below), and their respective rights, duties and obligations pertaining thereto, all upon the terms and subject to the conditions hereinafter set forth. AGREEMENTS NOW, THEREFORE, in consideration of the foregoing, and other good and valuable consideration paid by each of the parties hereto to the other, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, do hereby covenant and agree as follows: 1. PREMISES. 1.1 Landlord hereby leases to Tenant and Tenant hereby hires from Landlord the Land and Improvements (collectively, the "Premises"), together with a concurrent license to IKKSI744417.12 022508-04706118 -1- use the other Property conveyed by Tenant to Landlord under the Sale Contract, such as personal property and intangible rights relating to the Premises sold to Landlord by Tenant (such other licensed Property being the "Licensed Property"), upon all of the conditions and agreements set forth in this Lease. The leasing of the Premises and licensing of the Licensed Property by Landlord to Tenant is expressly subject to all liens, encumbrances, restrictions, conditions, and other matters recorded against the Premises in the Official Records or Santa Clara County, California ("Official Records") as of the Commencement Date ("Existing Title Exceptions"). 1.2 Possible Use of Surplus Property. Tenant acknowledges that Landlord will be evaluating potential uses of the Premises prior to and following the expiration of the Term. At Landlord's request, Tenant agrees to meet and confer in good faith regarding Landlord's possible use of any portion of the Premises not used by Tenant in its business operations or otherwise needed by Tenant (including without limitation the Surplus Land described in Section 5.1 below), on such terms and conditions as are mutually acceptable to the parties. 2. LEASE TERM. 2.1 Tenn. The term of this Lease ("Term") shall be for approximately two (2) years, commencing on the Commencement Date, and expiring on February 28,2010. "Lease Termination" shall mean the expiration or sooner termination ofthis Lease. 2.2 Early Entry. Tenant acknowledges that Tenant's use and occupancy of the Premises and use of the Licensed Property prior to the Commencement Date has been and is at Tenant's sole risk, and at all times in accordance with Tenant's interest as owner thereof. 2.3 Acceptance. Tenant hereby accepts the Property in its "AS IS" and "WITH ALL FAULTS" condition, without representation or warranty of any kind, express or implied, and subject to all applicable Laws (defined in Paragraph 5.3 below). Tenant is the immediately prior owner of the Property and is highly familiar with and satisfied with the condition of the Property. Landlord shall have no obligation to maintain, repair, replace, or construct any portion of the Property, it being intended that all such obligations shall be the sole obligation of Tenant pursuant to this Lease. Neither Landlord nor Landlord's agents makes any representation or warranty as to the suitability of the Property for the conduct of Tenant's business, the condition of the Property, the use or occupancy which may be made thereof, or any other matter related to the Property, and Tenant is satisfied in all respects that the Property is and will be suitable for Tenant's intended use. None of the provisions of this Lease, including the Term as defined in Section 2.1 of this Lease shall be deemed to affect Tenant's corporate governing documents, including Tenant's corporate Bylaws, or serve to diminish or qualify Landlord's rights and powers relating to such governing documents. 3. RENT. 3.1 Rent. (a) Base Rent. During each twelve (12) month period during the Term (each, a "Lease Year"), Tenant shall pay to Landlord as Base Rent the amount of One Dollar ($1.00) per Lease Year, without proration as to any partial Lease Year. Base Rent for the first -2- IKKSI7 44417.12 022508-04706118 Lease Year shall be paid upon execution of this Lease by Tenant, and Base Rent for the remaining Lease Year shall be paid on the first day of the remaining Lease Year. Base Rent shall be paid throughout the Term without offset, deduction, prior notice or demand. (b) Percentage Rent. During and for each fiscal year of Tenant (running from March 1 through the end ofthe following February) during the Tenn, Tenant shall pay annual percentage rent ("Percentage Rent") equal to ten percent (10%) percent of all of Tenant's positive "EBITDA" (hereinafter defined) from all operations, including in pertinent part resulting from business conducted in, on or from the Premises during the fiscal year. Within sixty (60) days after the close of each such fiscal year, Tenant shall furnish to Landlord a compilation prepared by an officer of Tenant setting forth the amount of EBITDA during the preceding fiscal year and showing the amount of Percentage Rent, if any, required to be paid by Tenant for such fiscal year. The full amount of any Percentage Rent due shall be paid to Landlord on the July 1 that follows the end of Tenant's fiscal year (e.g., 4 months after the end of the fiscal year). (c) EBITDA. For the purposes of calculating Percentage Rent due under this Lease, the tenn "EBITDA" shall mean: the net income (but not loss) of Tenant for Tenant's fiscal year as set forth above, detennined in accordance with generally accepted accounting principles ("GAAP"), plus, to the extent deducted in computation of such Net Income, any interest expense, the amount of depreciation and amortization expense, and any tax liability allocable to such period, all as detennined in accordance with GAAP. For such purpose, Net Income (and accordingly EBITDA as that tenn is used herein) shall not include any addition for capital gains or deduction for capital losses on the sale or other disposition, of investments or fixed or capital assets, in that the intention of Landlord and Tenant is that Percentage Rent is to generally reflect the success of Tenant's business operations, which should not be distorted by such non-cash accounting charges. 3.2 Additional Rent. All amounts which Tenant is required to pay under this Lease, and all damages, costs and expenses which Landlord may incur by reason of any default by Tenant under this Lease shall be deemed to be additional rent hereunder ("Additional Rent"). Upon nonpayment of Additional Rent, Landlord shall have all of the rights and remedies with respect thereto as Landlord has for the non-payment of Base Rent. "Rentals" as used in this Lease shall mean Base Rent and all Additional Rent. All Rentals shall be paid in lawful money of the United States to Landlord at the address specified in this Lease for purposes of notice, or to such other persons or at such other places as may be designated in writing by Landlord from time to time. All Rentals shall be paid without offset or deduction and, except as otherwise expressly provided in this Lease, without prior notice or demand. Base Rent will be an absolutely net return to the Landlord throughout the Tenn, free of any expense, charge, or other deduction whatsoever with respect to the Property or the Landlord's interest therein, or the ownership, leasing, operation, management, maintenance, repair, use or occupation thereof. This Lease is a true "net lease" and Tenant's obligations arising or accruing during the Term to pay all Rentals and any other payments hereunder required to be made by Tenant will be absolute and unconditional and Tenant will pay all such amounts without notice, demand, counterclaim, set- off, deduction or defense and without abatement, suspension, defennent, diminution or reduction (except as otherwise expressly provided herein), free from any charges, assessments, impositions, expenses or deductions of any and every kind or nature whatsoever. All costs, -3- IKKSI744417.12 022508-04706118 expenses and obligations of every kind and nature whatsoever relating to the Property and the use and occupancy thereof which may arise or become due and payable during or with respect to the Tenn (whether or not the same will become payable during such Term or thereafter) shall be paid by Tenant. Tenant assumes the sole responsibility for the condition, use, operation, maintenance, and management of the Property, and Landlord will have no responsibility in respect thereof and will have no liability for damage to the Property or any other assets of Ten ant on any account or for any reason whatsoever. 3.3 Tenant Required At All Times to Maintain Nonprofit Status. This Lease, including without limitation the nominal base rental amount reflected in Paragraph 3.1, has been negotiated specifically in consideration of Tenant's status as a nonprofit corporation, and Tenant's agreement to maintain its nonprofit status and to use the Property in accordance with the terms and conditions of this Lease. Accordingly, Tenant covenants and warrants that during the Term, Tenant shall at all times be (i) an organization described in Section 501(c)(3) of the Internal Revenue Code ("Code"), or corresponding provisions of prior law, (ii) exempt from federal income taxes under Section 501(a) of the Code (except for unrelated business income subject to taxation under Section 511 of the Code), and (iii) in compliance with the terms, conditions and limitations contained in said Code Sections. Any breach of the covenants in this Section shall be a material default by Tenant under this Lease. 4. TAXES. 4.1 Real Property Taxes. Tenant shall pay, before the same become delinquent, all Real Property Taxes imposed against the Premises during the Term or otherwise attributable to any period prior to or within the Term. As used in this Lease, "Real Property Taxes" means any fonn of assessment, license, fee, rent tax, levy, possessory interest or other tax (other than Landlord's net income, estate, successor or inheritance taxes), now or hereafter imposed by any authority having the direct or indirect power to tax or by any city, county, state or federal government or any improvement or other district or division thereof, whether or not now customary or within the contemplation of the parties, ordinary or extraordinary, general or special, together with any taxes levied or assessed in lieu of, in substitution for, or in addition to existing taxes and assessments against the Premises, provided that the foregoing shall specially exclude any increases in Real Property Taxes resulting from a change in ownership occurring after the Commencement Date and not caused by Tenant, Tenant's subtenants or anyone claiming by or through Tenant or its subtenants. Tenant acknowledges that in connection with California Revenue and Taxation Code 107.6, upon Landlord's lease of the Premises to a nongovernmental entity, a possessory interest subject to property taxes may be created, and such parties in whom the possessory interest is vested may be subject to the payment of taxes levied on such interest, all of which shall be the obligation of Ten ant hereunder. 4.2 Tax on Leasehold or Personalty. Tenant shall be responsible for and shall pay before delinquency all municipal, county or state taxes, levies and fees of every kind and nature including, but not limited to, general or special assessments assessed during or with respect to any period prior to or within the Tenn against any leasehold interest or trade fixtures or personal property of any kind, owned, leased or licensed by, or placed in, upon or about the Premises, by Tenant, including without limitation the Licensed Property. Tenant agrees to pay before delinquency the amount of all taxes levied upon or measured by the rent payable -4- IKKSI7 44417 .12 022508-04706118 hereunder, whether as a so-called sales tax, transaction privilege tax, excise tax, or otherwise. If such taxes, levies or fees are assessed, levied, or imposed upon Landlord or any portion of the Premises, Landlord shall give Tenant a statement of the amount applicable to the Premises. If a separate assessment of the improvements is not available from the appropriate governmental authority, Landlord's good faith allocation shall be binding on Tenant. In such event, Tenant shall pay Landlord on demand for such taxes, levies and fees applicable to the Premises. 5. COVENANTS OF TENANT. 5.1 Use of the Premises. Tenant shall use the Property solely for the continuous operation of the Gilroy Gardens horticultural education and theme park, at all times in substantial confonnity with the manner of the operations engaged in by Tenant during the two (2) year period immediately prior to the Commencement Date. Notwithstanding the foregoing to the contrary, the parties acknowledge that the theme park is operated on approximately 70 acres of land and Tenant shall have the right to use the remaining acreage (hereinafter collectively referred to as the "Surplus Land" for any lawful short tenn use consistent with Tenant's charitable mission, or otherwise as shall be consented to in advance by Landlord in writing, in the reasonable exercise of Landlord's discretion. 5.2 Compliance with Law. Tenant, at its expense, shall comply promptly with all applicable Laws regulating the use by Tenant of the Property, foreseen or unforeseen, ordinary as well as extraordinary, even if the same will require structural or extraordinary repairs, alterations or additions; provided, however, if such compliance requires capital expenditures for or capital improvement to the Premises, costing in excess of a cumulative amount of Fifty Thousand Dollars ($50,000), then in lieu of bringing the Premises into compliance, the Tenant may elect to terminate this Lease on no less than thirty (30) days advance written notice to Landlord. Upon receipt of such termination notice, without any obligation to do so, Landlord may elect to keep this Lease in effect by agreeing in writing, within ten (10) business days after Landlord's receipt of Tenant's tennination notice, to pay the cost of the requisite compliance costs in excess of Fifty Thousand Dollars ($50,000), in which event Tenant's termination notice shall be void. Tenant shall place no loads upon the floors, walls or ceilings in excess of the maximum designed load or which endanger the structure; nor place any harmful liquids in the drainage systems; nor dump or store waste materials or refuse or allow such to remain upon the Premises, except in designated enclosed trash areas. 5.3 Specific Compliance Obligations. Without limiting the generality of Paragraph 5.2 above, but subject to Tenant's right to terminate this Lease as provided therein, Tenant shall comply, at its sole cost and expense, with all present and future laws, statutes, codes, ordinances, permits, licenses, rules, orders, regulations and governmental approvals and requirements (including, but not limited to, any health and safety regulations, the American's With Disabilities Act and all zoning and land use ordinances or regulations affecting the Property or Tenant's use thereof) relating to the Property and any amendments thereto (collectively, "Laws"), regardless of whether any such law imposes the duty of compliance on Landlord or Tenant. The foregoing obligation will include making any alteration or other modification to the Property required by any such Laws. Tenant will not use, occupy, or permit the Property to be used or occupied, nor do or permit anything to be done in or on the Premises in a manner which would (a) violate any certificate of occupancy or equivalent certificate affecting the Premises, or -5- IKKSI744417.12 022508-04706118 (b) constitute a public or private nuisance or waste. Tenant further agrees that it will, at its own cost and expense, fully and faithfully perform and observe all requirements and conditions of all the Existing Title Exceptions insofar as the same imposes any obligation upon the Landlord. 5.4 Hazardous Materials. 5.4.1 As used in this Lease, the following terms are defined as follows: (a) "Hazardous Materials" shall mean any substance: (A) that now or in the future is regulated or governed by, requires investigation or remediation under, or is defined as a hazardous waste, hazardous substance, pollutant or contaminant under any Laws, including for example only and without limitation, the Comprehensive Environmental Response Compensation and Liability Act, 42 V.S.C. S 9601 et ~., and the Resource Conservation and Recovery Act, 42 U.S.c. S 6901 et ~., or (B) that is toxic, explosive, corrosive, flammable, radioactive, carcinogenic, dangerous or otherwise hazardous, including for example only and without limitation, gasoline, diesel, petroleum hydrocarbons, polychlorinated biphenyls (PCBs), asbestos, mold, radon and urea fonnaldehyde foam insulation. (b) "Environmental Requirements" shall mean all Laws of any kind applicable to Hazardous Materials. (c) "Handle," "Handled," or "Handling" shall mean any installation, handling, generation, storing, treatment, use, disposal, discharge, release, manufacture, refinement, presence, migration, emission, abatement, removal, transportation, or any other activity of any type in connection with or involving Hazardous Materials. (d) "Environmental Losses" shall mean all costs and expenses of any kind, damages, fines and penalties incurred in connection with any violation of and compliance with Environmental Requirements by Tenant or Tenant's Representatives, or resulting from the activities of any person or entity (other than Landlord) upon any portion of the Premises prior to or during the Tenn, including without limitation all losses of any kind attributable to the diminution of value, loss of use or adverse effects on marketability or use of any portion of the Property, and all attorneys' and consultants' fees incurred in connection therewith. (e) "Tenant's Representatives" shall mean employees, officers, contractors, subtenants, assignees, licensees, representatives. Tenant's agents, transferees and 5.4.2 No Hazardous Materials shall be Handled at the Premises by Tenant, Tenant's Representatives or Tenant's visitors, invitees or guests without Landlord's prior written consent, which consent may be granted, denied, or conditioned upon compliance with Landlord's requirements, all in Landlord's sole, absolute discretion; except that Tenant shall have the right to use the Hazardous Materials to the extent necessary to the operation of the Gilroy Gardens amusement and recreational park but provided in all cases that any such Hazardous Materials stored at the Premises shall not exceed commercially reasonable quantities thereof and that all such Hazardous Materials shall at all times be Handled in accordance with all Environmental Requirements. All activities at the Premises, including without limitation the Handling of all Hazardous Materials by Tenant or Tenant's Representatives, shall comply at all -6- IKKSI744417.12 022508-04706118 times with all Environmental Requirements. At Lease Termination, Tenant shall have removed from the Premises all Hazardous Materials, other than those that may have migrated onto the Property from an offsite source and which were not caused by Tenant or Tenant's Representatives, and other than Hazardous Materials contamination to the extent caused by the acts of Landlord. Tenant shall keep Landlord fully and promptly informed of all Handling of Hazardous Materials by Tenant or Tenant's Representatives or otherwise occurring upon the Premises. 5.4.3 Subject to this Paragraph 5.4.3 below, Tenant shall, at its own expense, promptly take all actions required by any governmental authority in connection with any Hazardous Materials affecting the Premises which were improperly Handled by Tenant or Tenant's Representatives, including without limitation, inspection and testing, performing all cleanup, removal and remediation work required with respect to those Hazardous Materials, complying with all closure requirements and post-closure monitoring, and filing all required reports or plans. All of the foregoing work and all Handling of all Hazardous Materials shall be performed in a good, safe and workmanlike manner by consultants qualified and licensed to undertake such work and in compliance with all Environmental Requirements. Tenant shall deliver to Landlord prior to delivery to any governmental authority, or promptly after receipt from any such authority, copies of all permits, manifests, closure or remedial action plans, notices, and all other documents relating to Hazardous Materials affecting the Premises which were improperly Handled by Tenant or Tenant's Representatives. Tenant shall remove at its own expense, by bond or otherwise, all liens or charges of any kind filed or recorded against the Premises in connection with Hazardous Materials affecting the Premises which were improperly Handled by Tenant or Tenant's Representatives, within ten (10) days after the filing or recording of such lien or charge, and if Tenant fails to do so, Landlord shall have the right, but not the obligation, to remove the lien or charge at Tenant's expense in any manner Landlord deems expedient. Notwithstanding the foregoing, Tenant's obligations pursuant to this Paragraph 5.4.3 shall not apply to Hazardous Materials that were not caused by Tenant or Tenant's Representatives. 5.4.4 Tenant agrees to indemnify, defend and hold harmless Landlord and Landlord's officers, council members, employees, agents, agencies and other affiliates and representatives from all Environmental Losses incurred by Landlord from or in connection with Hazardous Materials on the Premises arising out of the Handling of Hazardous Materials by Tenant or Tenant's Representatives, or Tenant's breach of its obligations pursuant to the provisions of Paragraph 5.4 above; provided however that Tenant's obligations pursuant to this Paragraph 5.4.4 shall not apply to Hazardous Materials that were not caused by Tenant or Tenant's Representatives. Tenant's obligations under this Paragraph 5.4 shall survive the expiration or termination ofthis Lease. 6. MAINTENANCE. REPAIRS. AND AL TERA nONS. 6.1 Tenant's Responsibility. Tenant shall, during the Term, keep in good order, condition and repair the Premises and every part thereof, including, without limitation, buildings, roofs and structures, all fixtures, interior walls and interior surface of exterior walls, exterior facade, exterior walls, rides, attractions, landscaping, sidewalks, parking areas and other exterior areas, electrical and plumbing systems, heating, ventilating and air conditioning systems, -7- IKKS\744417.12 022508-04706118 all equipment, windows, plate glass, downspouts, gutters, ceilings, floors and floor coverings, and doors, subject to Paragraphs 6.4 and 8.1 below. Tenant shall, during the Term, also keep in good order, condition and repair all of the personal property licensed to Tenant under this Lease. Tenant shall keep the Premises at all times in a neat, clean and sanitary condition, shall neither commit nor permit any waste or nuisance thereon, and shall keep the walks and all exterior areas thereto free from Tenant's waste or debris. Tenant's obligations under this Paragraph 6.1 shall include the obligation to replace any of the foregoing items, or any portion thereof, which cannot be fully repaired, subject to Paragraphs 6.4 and 8.1 below. In no event shall Landlord have any repair or maintenance responsibility for the Premises or Licensed Property, or any portion thereof. Notwithstanding the foregoing to the contrary, in the event such maintenance and repairs requires capital expenditures for or capital improvement to the Premises, then, in lieu of making such repairs, Tenant may elect to terminate this Lease on no less than thirty (30) days advance notice to Landlord. If Tenant fails to perform its obligations under this Paragraph 6.1, notwithstanding any other provision hereof and without waiving any other right or remedy Landlord may have, Landlord may, at its option, after ten (10) days' written notice to Tenant, enter upon the Premises and put the Premises and/or Licensed Property in good order, condition and repair and at Landlord's further option, continue such maintenance and repair obligation for the remainder of the Term, and the cost thereof shall become immediately due and payable as Additional Rent by Tenant to Landlord upon demand. 6.2 Condition Upon Surrender. On Lease Tennination, Tenant shall surrender the Premises and Licensed Property to Landlord in the same condition as exists on the Commencement Date, ordinary wear and tear excepted, subject to Paragraph 8.1 below. Upon Lease Tennination, all of Tenant's rights with respect to the Premises and Licensed Property shall tenninate. 6.3 Improvements by Tenant. Tenant shall not, without prior written consent of Landlord, which consent will not be unreasonably withheld except as provided in Paragraph 6.4 below, make any alterations, improvements, or additions (collectively, "Alterations") to the Premises. Before commencing any Alterations, Tenant shall submit plans and specifications to Landlord for Landlord's approval. At least ten (10) days prior to undertaking construction of any Alterations, Tenant shall give written notice to Landlord setting forth the date work is to commence. Landlord shall have the right at all reasonable times to post and keep posted on the Premises such notices of nonresponsibility as Landlord may deem necessary for the protection of Landlord and the Premises from mechanic's and materialman's liens. All Alterations shall be installed at Tenant's sole cost and expense, in compliance with all applicable Laws and any covenants, conditions or restrictions of record, shall be done in a good and workmanlike manner by licensed contractors conforming in quality and design with the Premises existing as of the Commencement Date, and shall not diminish the value of the Premises. All Alterations made by Tenant shall be and become the property of Landlord upon installation and shall not be deemed Tenant's personal property. 6.4 Limitation on Expenditures. Notwithstanding the proVISIons of this Article 6 above, Tenant may only make or install, without Landlord's prior written approval, any Alterations, refurbishments, new attractions or capital improvements which in the aggregate in -8- IKKSI744417.12 022508-04706118 any Lease Year would not result in an expenditure of over One Hundred Thousand Dollars ($100,000). The foregoing limitation on expenditures does not apply to ordinary repairs and maintenance which are not in the nature of capital improvements. All alterations, refurbishments, new attractions or capital improvements made pursuant to the provisions of this Paragraph 6.4, shall remain on the Premises at Lease Termination and Tenant shall have no duty to remove same on Lease Termination. 7. INSURANCE AND INDEMNITY. 7.1 Tenant to Maintain. Tenant shall at all times maintain insurance coverage providing coverage at least as broad as the existing insurance coverage maintained by Tenant that is described in the schedule attached hereto as Exhibit C. Without limiting the scope of the insurance requirements of Exhibit C, but as a supplement to the requirements thereof, Tenant shall maintain in full force throughout the Tenn, commercial general liability insurance providing coverage on an occurrence form basis with limits of not less than Five Million and NollOOths Dollars ($5,000,000.00) each occurrence for bodily injury and property damage combined, Five Million and Noll OOths Dollars ($5,000,000.00) annual general aggregate, and Five Million and Noll OOths Dollars ($5,000,000.00) products and completed operations annual aggregate. Tenant's liability insurance policy or policies shall: (i) include premises and operations liability coverage, products and completed operations liability coverage, broad form property damage coverage including completed operations, blanket contractual liability coverage including, to the maximum extent possible, coverage for the indemnification obligations of Tenant under this Lease, and personal and advertising injury coverage; (ii) provide that the insurance company has the duty to defend all insureds under the policy; (iii) provide that defense costs are paid in addition to and do not deplete any of the policy limits; (iv) cover liabilities arising out of or incurred in connection with Tenant's use or occupancy of the Premises or the Property; and (v) extend coverage to cover liability for the actions of Ten ant's Representatives. 7.2 Insurance Requirements. The policies required to be maintained by Tenant pursuant to Paragraph 7.1 above shall be with companies, on forms, with deductible amounts (if any), and loss payable clauses satisfactory to Landlord. All liability policies shall include Landlord as an additional insured, and shall provide that Landlord may, although an additional insured, recover for any loss suffered by Tenant's negligence. Certificates of insurance and, if requested by Landlord, certified copies of policies and endorsements evidencing the required coverage, shall be delivered to Landlord prior to the Commencement Date; a new certificate, or if requested by Landlord certified policy and endorsements, shall be delivered to Landlord at least thirty (30) days before expiration date of the old policy. Tenant shall obtain a written obligation on the part of Tenant' s insurer(s) to notify Landlord in writing of any delinquency in premium payments and at least thirty (30) days prior to any cancellation or modification of any policy. Tenant's policies shall provide coverage on an occurrence basis and not on a claims made basis. In no event shall the limits of any policies maintained by Tenant be considered as limiting the liability of Tenant under this Lease. 7.3 Waiver of Liabilitv. Landlord and Tenant each hereby waives any and all rights of recovery against the other or against the employees, representatives and agents of such other party for loss of or damage to such waiving party or its property or the property of others under its control, arising from any cause to the extent insured against under any insurance policy -9- IKKS\744417.12 022508-04706118 carried by such waiving party pursuant to this Lease and to the extent such waiver is permitted under such insurance policy and does not prejudice coverage under such policy. Tenant shall obtain and furnish evidence to Landlord ofthe waiver by Tenant's insurance carriers of any right of subrogation against Landlord. 7.4 Tenant to IndemnifY. Tenant hereby agrees to defend, indemnifY and hold harmless Landlord and Landlord's officers, council members, employees, agents, agencies and other affiliates and representatives from and against any and all claims, damages, losses, liabilities or expenses (including without limitation reasonable attorneys' fees) due to any cause including without limitation, bodily injury and property damage, which arises out the use or occupancy of the Premises or any part thereof, the acts or omissions of Tenant or Tenant's Representatives, or Tenant's breach of this Lease, except to the extent caused by the willful misconduct or active negligence of Landlord. Tenant's obligation under this Paragraph 7.4 shall survive Lease Tennination. 7.5 Landlord's Disclaimer. Landlord shall not be liable for injury or damage which may be sustained by the person, goods, wares, merchandise or property of Tenant, its employees, invitees or customers or any other person in or about the Premises caused by or resulting from fire, steam, electricity, gas, water or rain which may leak or flow from or into any part of the Premises, or from the breakage, leakage, obstruction or other defects of the pipes, sprinklers, wires, appliances, plumbing, air conditioning or lighting fixtures of the same, or from any other cause, whether such damage or injury results from conditions arising upon the Premises or from other sources. 8. REPAIRS AND RESTORATION. 8.1 Damage. Subject to this Paragraph 8.1 below, if at any time during the Term the Premises are damaged, whether partially or entirely, Tenant shall have the option to either (i) promptly repair such damage or rebuild the Premises at Tenant's sole cost and expense, in which event this Lease shall continue in full force and effect, or (ii) terminate this Lease by giving written notice of termination to Landlord within sixty (60) days following the event of damage. Notwithstanding the foregoing, if within thirty (30) days following the event of damage, the Landlord notifies Tenant in writing that: (i) Landlord has determined that the cost to repair or rebuild the Premises is estimated to exceed One Hundred Thousand Dollars ($100,000), and (ii) that Landlord will not consent to Tenant's repair or restoration of all or any part of such damage, then Tenant shall not have the right to contract for or commence any such work and Tenant shall have the option of either (x) continuing this Lease in full force or effect without making such repairs or restorations that were disapproved by Landlord, or (y) terminating this Lease by giving written notice of termination to Landlord within thirty (30) days following Tenant's receipt of Landlord's written notice, as described above. If Tenant fails to provide Landlord with written notice of termination within thirty (30) day period described in this Paragraph 8.1 above, Tenant shall be deemed to have elected to continue this Lease in full force and effect and, except to the extent prohibited by Landlord pursuant to this Paragraph 8.1 above, repair such damage. If Tenant elects to terminate this Lease pursuant to this Paragraph 8.1 above, or if Landlord has prohibited repairs pursuant to this Paragraph 8.1 above, then all insurance proceeds paid to Tenant or otherwise recoverable under the any insurance policy in connection with such casualty (other than business interruption insurance proceeds) shall be paid -10- IKKSI7 44417 .12 022508-04706118 over to Landlord immediately upon receipt of such payment by Tenant, it being agreed that Tenant shall have no right to any such proceeds. If Tenant elects and has the right to repair the damage, Tenant shall be entitled to utilize the insurance proceeds paid as a result of such casualty to effectuate such repairs, with any excess proceeds to be paid over to Landlord In no event shall Landlord be obligated to repair or rebuild the Premises in the event of any damage or destruction to the Premises from any cause, whether or not insurance proceeds are paid to Landlord. All repairs by Tenant shall be done in compliance with all applicable Laws and any covenants, conditions or restrictions of record, by a licensed contractor, and shall be done in a good workmanlike manner conforming in quality and design with the Premises existing as of the date the Premises were delivered to Tenant under this Lease. Before commencing repair of the Premises, Tenant shall submit plans and specifications to Landlord for Landlord's approval, which approval shall not be unreasonably withheld except to the extent Landlord has the right not to consent to repairs pursuant to this Paragraph 8.1 above. Tenant's obligations under this Paragraph 8.1 shall survive Lease Termination. 8.2 Notice. Rent Abatement Refixturing. Tenant shall notify Landlord in writing immediately upon the occurrence of any damage or destruction to all or any portion of the Premises. There shall be no abatement of Rent or other Rentals payable hereunder and Tenant shall have no claim against Landlord for any damage suffered by Tenant by reason of any such damage, destruction, repair or restoration. In no event shall any damage, destruction, restoration or repair of any portion of the Premises result in an extension of the expiration date of the Lease. 9. ASSIGNMENT AND SUBLETTING. 9.1 Landlord's Consent Required. Tenant shall not, either voluntarily, involuntarily or by operation of law (i) assign, sell or otherwise transfer all or any part of the Tenant's interest in this Lease or in the Premises or Licensed Property, or (ii) pennit any part of the Premises to be sublet, occupied or used by anyone other than Tenant, or (iii) permit any person to succeed to any interest in this Lease, the Premises or the Licensed Property (all of the foregoing being collectively referred to as a "Transfer"), without the prior written consent of Landlord, which consent may be granted, conditioned or denied by Landlord in the exercise of Landlord's sole and absolute discretion. Consent by Landlord to one or more Transfers shall not operate to exhaust Landlord's rights under this Article to consent to subsequent Transfers. If Tenant is a corporation, any dissolution, merger, consolidation or reorganization of Tenant, or the sale (cumulatively) of fifty percent (50%) or more of the value of Tenant's assets shall be deemed a Transfer. In no event shall Tenant hypothecate, mortgage, pledge or encumber Tenant's interest in this Lease or in the Premises or Licensed Property or otherwise use the Lease as a security device in any manner, nor shall Tenant transfer any right appurtenant to this Lease or the Premises separate from a pennitted Transfer. Tenant expressly agrees that the provisions of this Article are not unreasonable standards or conditions for purposes of Section 1951.4(b )(2) of the California Civil Code, as amended from time to time, under the federal Bankruptcy Code, or for any other purpose. Notwithstanding the foregoing to the contrary, the parties agree that (i) the entering into a management agreement with Cedar Fair, or some other management company to manage the theme park does not constitute a violation of this Paragraph 9.1, and (ii) entering into a short-tenn occupancy agreement consistent with Tenant's charitable purpose, such as -11- IKKSI744417.12 022508-04706118 allowing a week-end camping trip for a scouting group, shall not constitute a sublease requiring Landlord's consent for purposes ofthis Section 9.1. 9.2 Notice to Landlord. If Tenant desires at any time to effect a Transfer, it shall first notify Landlord of its desire to do so and shall submit in writing to Landlord (a) the name of the proposed Transferee; (b) the nature of the proposed Transferee's business to be carried on in the Premises; and (c) such other infonnation as Landlord may reasonably request to evaluate the Transfer and Transferee. 9.3 Tenant Not Released. No Transfer, even with the consent of Landlord, shall relieve Tenant of its obligation to pay the Rentals and perfonn all of the other obligations to be performed by Tenant hereunder. The acceptance of Rentals by Landlord from any other person shall not be deemed to be a waiver by Landlord of any provision of this Lease or to be a consent to any Transfer. 10. EMINENT DOMAIN. 10.1 Automatic Termination. If the entire Premises, or so much thereof as to make the Premises not reasonably adequate for the conduct of Tenant's business in Tenant's reasonable judgment, shall be taken under the power of eminent domain, this Lease shall automatically terminate as of the date on which the condemning authority takes possession. 10.2 No Rent Abatement. If a portion of the Premises is taken by power of eminent domain which does not result in a termination of this Lease, then this Lease shall continue in full force and effect as to the part of the Premises not so taken. There shall be no abatement of Rent or other Rentals payable hereunder and Tenant shall have no claim against Landlord for any damage suffered by Tenant by reason of any taking of the Premises under the power of eminent domain. 10.3 Condemnation Award. Any award for any taking of all or any part of the Premises under the power of eminent domain shall be the property of Landlord, whether such award shall be made as compensation for diminution in value of the leasehold or for taking ofthe fee, or otherwise. In no event shall Landlord be obligated to make any repairs or perform any restoration or other work required as a result of a taking. lOA Sale Under Threat of Condemnation. A sale by Landlord to any authority having the power of eminent domain, either under threat of condemnation or while condemnation proceedings are pending, shall be deemed a taking under the power of eminent domain for all purposes under this Article. Each party waives the provisions of California Code of Civil Procedure Section 1265.130 allowing either party to petition the Superior Court to terminate this Lease in the event of a taking. 11. UTILITY SERVICES. Tenant shall arrange for, and shall timely pay directly to the appropriate utility or service supplier all charges for, water, gas, heat, light, power, sewer, electricity, refuse and waste disposal, telephone, janitorial service, or any other service or utility metered, supplied or provided to the Premises during the Term of this Lease. Landlord shall not be liable in damages or otherwise for any failure or interruption of any utility or service being furnished to the Premises and no such failure or interruption shall entitle Tenant to terminate this -12- IKKSI744417.12 022508-04706118 Lease or shall otherwise affect Tenant's obligations under this Lease. Landlord shall be entitled to cooperate voluntarily and Tenant agrees to cooperate, with the efforts of governmental authorities or utility suppliers in reducing energy or other resource consumption. 12. DEFAULTS. REMEDIES. 12.1 Defaults. The occurrence of anyone or more of the following events shall constitute a default hereunder by Tenant: 12.1.1 The failure by Tenant to make any payment required by this Lease as and when due. 12.1.2 The failure by Tenant to timely observe or perfonn any of the express or implied covenants or provisions ofthis Lease to be observed or performed by Tenant. 12.1.3 The making by Tenant of any general assignment for the benefit of creditors; the appointment of a trustee or receiver to take possession of substantially all of Tenant's assets located at the Premises or of Tenant's interest in this Lease, where possession is not restored to Tenant within thirty (30) days; or the attachment, execution or other judicial seizure of substantially all of Tenant's assets located at the Premises or of Tenant's interest in this Lease, where seizure is not discharged within thirty (30) days. 12.2 Remedies. Upon a default, Landlord shall have the following remedies, in addition to all other rights and remedies provided by law or otherwise provided in this Lease, to which Landlord may resort cumulatively or in the alternative: 12.2.1 Landlord may terminate this Lease and Tenant's right to possession of the Premises at any time if (i) such default is in the payment of Rentals and it is not cured within three (3) days after written notice from Landlord, or, (ii) with respect to the defaults referred to in Paragraph 12.1.2 such default is not cured within thirty (30) days after written notice from Landlord; provided, however, that if the nature of Tenant's default is such that more than thirty (30) days are reasonably required for its cure, if Tenant does not commence to cure the default within the thirty (30) day period or does not diligently and in good faith prosecute the cure to completion within a reasonable time thereafter, or (iii) with respect to the default specified in Paragraph 12.1.3, such default is not cured within the respective time specified in that Paragraph. The parties agree that any notice given by Landlord to Tenant pursuant to this Paragraph 12.2.1 shall be sufficient notice for purposes of California Code of Civil Procedure Section 1161 and Landlord shall not be required to give any additional notice in order to be entitled to commence an unlawful detainer proceeding. On termination, Landlord has the right to remove all of Tenant's personal property, signs and trade fixtures and store same at Tenant's cost and to recover from Tenant as damages: 12.2.1.1 The worth at the time of award of unpaid Rentals and other sums due and payable which had been earned at the time of termination; plus 12.2.1.2 The worth at the time of award of the amount by which the unpaid Rentals and other sums due and payable which would have been payable after -13- IKKSI744417.12 022508-04706118 termination until the time of award exceeds the amount of such Rental loss that Tenant proves could have been reasonably avoided; plus 12.2.1.3 The worth at the time of award of the amount by which the unpaid Rentals and other sums due and payable for the balance of the Term after the time of award exceeds the amount of such rental loss that Tenant proves could be reasonably avoided; plus 12.2.1.4 Any other amount necessary to compensate Landlord for all the detriment proximately caused by Tenant's failure to perform Tenant's obligations under this Lease, or which, in the ordinary course of things, would be likely to result therefrom, including, without limitation, any costs or expenses incurred by Landlord: (a) in retaking possession of the Premises or Licensed Property; (b) in maintaining, repairing, preserving, restoring, replacing, cleaning, altering or rehabilitating the Premises, Licensed Property or any portion thereof, including such acts for reletting to a new tenant or tenants; (c) for leasing commissions; or (d) for any other costs necessary or appropriate to relet the Premises; plus 12.2.1.5 Such other amounts in addition to or in lieu of the foregoing as may be permitted from time-to-time by the laws of the State of California. The "worth at the time of award" of the amounts referred to in Paragraphs 12.2.1.1 and 12.2.1.2 is computed by allowing interest at the Stipulated Rate (defined in Paragraph 16). The "worth at the time of award" of the amount referred to in Paragraph 12.2.2.3 is computed by discounting such amount at the discount rate of the Federal Reserve Bank of San Francisco at the time of award plus one percent (1 %). 12.3 No delay or omission of Landlord to exercise any right or remedy shall be construed as a waiver of any such right or remedy or of any default by Tenant hereunder. 12.4 Default by Landlord. Landlord shall not be in default in the performance of any obligation required to be perfonned by it hereunder unless and until it has failed to perfonn such obligation within thirty (30) days after written notice by Tenant to Landlord specifying wherein Landlord has failed to perform such obligation; provided, however, that ifthe nature of Landlord's obligation is such that more than thirty (30) days are required for its performance then Landlord shall not be deemed to be in default if it shall commence such performance within such thirty (30) day period and thereafter diligently prosecute the same to completion. Notwithstanding any other provision of this Lease, in no event shall Landlord be liable to Tenant for consequential damages, or loss of or interference with Tenant's business, including without limitation lost profits. 12.5 Expenses of Prevailing Party. If either party incurs any expense, including reasonable attorneys' fees, in connection with any action or proceeding instituted by either party arising out of this Lease, the party prevailing in such action or proceeding shall be entitled to recover its reasonable expenses including reasonable attorneys' fees from the other party. 12.5 Exculpation. Notwithstanding anything contained in this Lease to the contrary, any liability or obligation imposed upon Tenant under or with respect to this Lease shall not thereby constitute the personal liability of any officer or director of Tenant, and shall -14- IKKSI7 44417.12 022508-04706118 not create or involve any claim against, or any personal liability on the part of any ofthem, and that in the event any such liability or obligation at any time exists, Landlord shall look solely to the assets of Tenant for the satisfaction thereof, and will not seek recourse against such officers or directors or any of their personal assets for such satisfaction. 13. SIGNS. Tenant's signs shall comply with all applicable Laws. 14. RIGHT OF ENTRY. Landlord and its agents shall have free access to the Premises during all reasonable hours for the purpose of examining the same to ascertain if they are in good repair, making repairs or installations which Landlord may be permitted to make hereunder (without obligation to do so), perfonning Landlord's obligations under this Lease, protecting the Premises (without obligation to do so), posting notices of nonresponsibility, and exhibiting the same to prospective purchasers, lenders or tenants. 15. TRANSFER OF LANDLORD'S INTEREST. Upon any transfer of Landlord's interest in the Premises, the transferor shall be automatically relieved of any and all obligations and liabilities on the part of Landlord accruing from and after the date of such transfer, provided that the transferee is liable for any and all obligations and liabilities on the part of Landlord accruing from and after the date of such transfer. Upon such transfer, Tenant shall have the election of either (i) tenninating this Lease, or (ii) attorning to any transferee of Landlord's interest in the Premises. 16. INTEREST. Any amount due from Tenant to Landlord hereunder which is not paid when due shall bear interest from the due date until paid an annual rate of interest (the "Stipulated Rate") equal to ten percent (10%), provided that in no event shall such rate exceed the highest rate pennissible under applicable law. Payment of such interest shall not excuse or cure any default by Tenant under this Lease. 17. MISCELLANEOUS. 17.1 Time of Essence. Time is of the essence with respect to the performance of every provision of this Lease. 17.2 Captions. The article and paragraph captions contained in this Lease are for convenience only and shall not be considered in the construction or interpretation of any provision hereof. 17.3 Entire Agreement and Amendments. This Lease contains all of the agreements of the parties hereto with respect to any matter covered or mentioned in this Lease, and no other agreement or understanding pertaining to any such matter shall be effective for any purpose. No provision of this Lease may be amended or added to except by an agreement in writing signed by the parties hereto or their respective successors in interest. 17.4 Notice. Any notices, requests, demands or other communications required or permitted to be sent under this Agreement shall be delivered personally, sent by overnight courier or mailed by registered or certified mail, return receipt requested, to the following addresses: -15- IKKSl7 44417 .12 022508-04706118 If to Purchaser: City of Gilroy 7351 Rosanna Street Gilroy, CA 95020 Attn: Anna Jatczak Tel: (408) 846-0212 Fax: (408) 846-0500 With a copy to: Berliner Cohen 10 Almaden Boulevard, Suite 1100 San Jose, CA 95113 Attn: Andrew Faber, Esq. Tel: (408) 286-5800 Fax: (408) 998-5388 Ifto Seller: Gilroy Gardens Family Theme Park, Inc. 3050 Hecker Pass Highway Gilroy, CA 95020 Attn: Bob Kraemer Tel: (408) 842-6949 Fax: (408) 846-6474 With a copy to: Miller, Morton, Caillat & Nevis, LLP 25 Metro Drive, 7th Floor San Jose, CA 95110 Attn: David Nevis, Esq. Tel: (408) 292-1765 Fax: (408) 292-4484 Any notice so given by mail shall be deemed effectively given two (2) days after being deposited in the United States mail, registered or certified, postage prepaid and addressed as specified herein. Either party may by written notice to the other specifY a different address for notice purposes. Notwithstanding the foregoing, any legal notices required to be sent by one party to the other (including without limitation, a notice pursuant to California Code of Civil Procedure Section 1161) shall be delivered in the manner required or allowed by law. 17.5 Holdover. This Lease shall terminate without further notice at the expiration of the Term. Any holding over after Lease Termination with the consent of Landlord shall be construed to be a tenancy from month to month, with Base Rent payable at the rate of One Dollars ($1) per month in advance, but otherwise on the same terms and conditions set forth in this Lease. If Tenant remains in possession of the Premises after Lease Termination without Landlord's consent or fails to surrender the Premises and Licensed Property in the condition required by Paragraph 6.2, Tenant shall indemnifY, defend and hold Landlord and Landlord's employees, representatives and agents harmless from and against any claims, losses, damages, expenses or liabilities (including without limitation reasonable attorneys' fees) resulting from Tenant's failure to surrender the Premises in the required condition, including without limitation, any claims made by any succeeding tenant based upon delay in the availability ofthe Premises. -16- IKKSI744417.12 022508-04706118 17.6 Brokers. Landlord and Tenant each warrants and represents to the other that it has had no dealings with any real estate broker or agent in connection with the negotiation of this Lease. Each party agrees to defend, indemnify and hold the other party and the other party's employees, representatives and agents harmless from and against any and all claims, losses, damages, liabilities or expenses (including without limitation reasonable attorney's fees) arising out of or in connection with the indemnifying parties' breach of its representations and warranties set forth in this Paragraph 17.6. 17.7 Acceptance. The effectiveness of this Lease shall be conditioned upon the purchase of the Property by Landlord under the Sale Contract and full execution hereof by Landlord and Tenant. 17.8 Waiver. The waiver by one party of any breach of any term, condition or covenant of this Lease shall not be deemed to be a waiver of such provision or any subsequent breach of the same or any other term, condition or covenant of this Lease. The subsequent acceptance of Rentals hereunder by Landlord shall not be deemed to be a waiver of any preceding breach at the time of acceptance of such payment. No covenant, term or condition of this Lease shall be deemed to have been waived by a party unless such waiver is in writing signed by such party. 17.9 Separability. If one or more of the provisions contained herein, except for the payment of Rentals, is for any reason held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision of this Lease, but this Lease shall be construed as if such invalid, illegal or unenforceable provision had not been contained herein. 17.10 Liens. Tenant shall pay for all labor and services performed for, and all materials used by or furnished to Tenant or Tenant's Representatives and keep the Premises free from any liens arising out of work performed, materials furnished, or obligations incurred by Tenant or Tenant's Representatives with respect to the Premises. Tenant shall indemnify, hold hannless and defend Landlord and Landlord's employees, representatives and agents from and against any liens, demands, claims, judgments or encumbrances (including all attorneys' fees) arising out of any work or services performed for or materials used by or furnished to Tenant or Tenant's Representatives with respect to the Premises. Tenant shall do all things necessary to prevent the filing of any mechanic's or other liens against the Premises or any part thereof by reason of work, labor, services or materials supplied or claimed to have been supplied to Tenant, or anyone holding the Premises, or any part thereof, through or under Tenant. If any such lien shall at any time be filed against the Premises, Tenant shall either cause the same to be discharged of record within ten (10) days after the date of filing of the same, or, if Tenant in Tenant's discretion and in good faith determines that such lien should be contested, Tenant shall furnish such security as may be necessary or required to (a) prevent any foreclosure proceedings against the Premises during the pendency of such contest, and (b) cause a the removal of such lien as a matter affecting title to the Premises. If Tenant shall fail to discharge such lien within such period or fail to furnish such security, then, in addition to any other right or remedy of Landlord resulting from Tenant's said default, Landlord may, but shall not be obligated to, discharge the same either by paying the amount claimed to be due or by procuring the discharge of such lien by giving security or in such other manner as is, or may be, prescribed by law. -17- IKKSI7 44417 .12 022508-04706118 Tenant shall repay to Landlord on demand all sums disbursed or deposited by Landlord pursuant to the foregoing provisions of this Paragraph 17.1 0 including Landlord's costs, expenses and reasonable attorneys' fees incurred by Landlord in connection therewith, with interest thereon at the Stipulated Rate. Nothing contained herein shall imply any consent or agreement on the part of Landlord to subject Landlord's estate to liability under any mechanics' or the lien law. Tenant shall give Landlord adequate opportunity and Landlord shall have the right to post such notices ofnonresponsibility as are provided for in the mechanics' lien laws of California. 17.11 Subordination. Subject to this Paragraph 17.11 below, this Lease is subject and subordinate to all the Existing Title Exceptions, and to all renewals, modifications, consolidations, replacements and extensions thereof; provided, however, if the holder or holders of any such Existing Title Exception ("Holder") shall require that this Lease be prior and superior thereto, within seven (7) days after written request of Landlord to Tenant, Tenant shall execute, have acknowledged and deliver any and all documents or instruments, in the form presented to Tenant, which Landlord or Holder deems necessary or desirable for such purposes. Landlord shall have the right to cause this Lease to be and become and remain subject and subordinate to any and all mortgages, deeds of trust, covenants, conditions and restrictions of record and all other liens and encumbrances (each a "Future Encumbrance") which may hereafter be executed covering the Premises or any renewals, modifications, consolidations, replacements or extensions thereof, for the full amount of all advances made or to be made thereunder and without regard to the time or character of such advances, together with interest thereon and subject to all the tenns and provisions thereof, provided that the holder of such Future Encumbrance ("Future Holder") shall agree in writing for the benefit of Tenant that this Lease and Tenant's interest hereunder shall not be disturbed so long as Tenant is not in default under this Lease. Within ten (10) days after Landlord's written request, Tenant shall execute any and all documents reasonably required by Landlord or a Holder or Future Holder to confinn the current subordination of this lease to an Existing Title Exception or to make this Lease subordinate to any lien of a Future Encumbrance, provided that the Holder or Future Holder, as applicable, agrees that so long as Tenant is not in default under this Lease, this Lease and Tenant's interest hereunder shall not be disturbed. Tenant hereby attorns and agrees to attorn to any entity purchasing or otherwise acquiring the Premises at any sale or other proceeding or pursuant to the exercise of any other rights, powers or remedies under any Existing Title Exception of Future Encumbrance so long as the Lease remains in effect. 17.12 Tenant's Obligation Not to Discriminate. Tenant covenants and agrees for itself, its successors, its assigns and every successor-in-interest to all or any portion of the Premises, that there shall be no discrimination against or segregation of any person, or group of persons, on account of race, color, religion, sex, sexual orientation, marital status, national origin, ancestry, familial status, source of income, or disability, in the assignment, sublease, transfer, use, occupancy, tenure or enjoyment of the Property, nor shall the Tenant, itself or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use or occupancy of assignees, sub-tenants, sub-lessees or vendees ofthe Property. 17.13 Landlord's Right to Perform Tenant's Covenants. If Tenant fails to make any payment or perfonn any other act on its part to be made or performed under this Lease, Landlord may, but shall not be obligated to and without waiving or releasing Tenant from any -18- IKKSl7 44417.12 022508-04706118 obligation of Tenant under this Lease, make such payment or perform such other act to the extent Landlord may deem desirable, and in connection therewith, pay expenses and employ counsel. All sums so paid by Landlord and all penalties, interest and costs in connection therewith shall be due and payable by Tenant immediately on demand, together with interest at the Stipulated Rate from the date of payment by Landlord to the date of payment by Tenant to Landlord. 17.14 Tenant's Remedy. If, because of a default by Landlord under this Lease, Tenant recovers a money judgment against Landlord, such judgment shall be satisfied only out of the proceeds of sale received upon execution of such judgment and levied thereon against the right, title and interest of Landlord in the Premises and out of rent or other income from the Premises receivable by Landlord, and neither Landlord, nor any of Landlord's officers, council members, employees, agents, agencies and other affiliates and representatives, shall be personally liable for any deficiency. Landlord's officers, council members, employees, agents, agencies and other affiliates and representatives, nor any oftheir respective assets, shall be liable for Landlord's breach of this Lease. 17.15 Exhibits. All exhibits, amendments, riders and addenda attached hereto are hereby incorporated herein and made a part hereof. 17.16 Conditions. All agreements of Tenant contained in this Lease, whether expressed as conditions or covenants, shall be construed to be both conditions and covenants, conferring upon Landlord, in the event of a breach thereof, the right to terminate this Lease. 17.17 No Partnership or Joint Venture. Nothing in this Lease shall be construed as creating a partnership or joint venture between Landlord, Tenant, or any other party, or cause Landlord to be responsible for the debts or obligations of Tenant or any other party. 17.18 Construction. This Lease shall not be construed either for or against Tenant or Landlord, but shall be construed in accordance with the general tenor of the language. This Lease shall be construed in accordance with the laws of the State ofCalifomia. 17.19 Binding Effect. Subject to the provisions of Article 9 and Article 15, all of the provisions hereof shall bind and inure to the benefit of the parties hereto and their respective heirs, legal representatives, successors and permitted assigns. 17.20 Legal Representation. Tenant acknowledges and agrees that Berliner Cohen acts as legal counsel only to Landlord, and that Berliner Cohen has not and will not represent or give advice to the Tenant in connection with this Lease or any transactions contemplated by this Lease. Tenant shall rely upon the advice of its own legal counsel as to the legal and tax consequences ofthis Assignment and the transactions contemplated hereunder. 17.21 Recording. On or promptly following the Commencement Date, Landlord and Tenant shall execute and record in the Official Records a Memorandum of Lease in the form attached hereto Exhibit D, with the Commencement Date inserted in the blanks provided for such information in the introductory paragraph of the Memorandum of Lease. Promptly following Lease Termination, Tenant agrees to execute in recordable form, a memorandum, quitclaim deed or other document reasonably requested by Landlord to clear this Lease from -19- IKKSI744417.12 022508-04706118 title, with signatures notarized for recording in the Official Records. Tenant's obligation pursuant to this Paragraph 17.21 shall survive Lease Termination. \KKS\7 44417 .12 022508-04706118 [Signatures on next page] -20- THIS LEASE is effective as ofthe Commencement Date set forth above. TENANT: GILROY GARDENS FAMILY THEME PARK, a Delaware nonprofit public benefit corporation fonnerly known as "Bonfante Gardens, Inc." By: .1 '~ I / / / ;.... ..f'- _1 /- .,(.. A ,'fA/fL.., ~~ IL~V"'. f/ li .' LANDLORD: By: Its: APPROVED AS TO FORM: ~~{/c~ City Attorney -21- IKKSI744417.12 022508-04706118 EXHIBIT A LEGAL DESCRIPTION [To Be Attached] -1- IKKSI7 44417 .12 022508-04706118 Escrow No.: 07-98702516-JW Locate No.: CACTI7743-7743-2987-0098702516 Title No.: 07-98702516-KV EXHIBIT "A" THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF GILROY, COUNTY OF SANTA CLARA, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: PARCEL ONE: Beginning at the point of intersection of the Northeasterly line of Hecker Pass Highway, as said line was established by Parcel One in the Deed from the De Bell Corporation, a Corporation, to the State of California, dated June 12, 1957, recorded July 30,1957 in Book 3855 Official Records, Page 512, Santa Clara County Records, with the Easterly line of that certain 24.07 acre tract of land described in the Deed from Jack De Bell et ux, to Louis A. Filice, et ux, dated September 15, 1954 recorded October 19, 1954 in Book 2986 Official Records, Page 527, Santa Clara County Records; thence from said Point of Beginning South 60 deg 42' 34" East along said Northeasterly line of Hecker Pass Highway for a distance of 599.78 feet; thence Southeasterly continuing along said last mentioned line along an arc of a curve to the left, tangent to the preceding course, with a radius of 1450.00 feet, through a central angle of 14 deg 52' 00", for an arc distance of 376.24 feet to the point of intersection thereof with the Southeasterly prolongation of a Westerly line of that certain 3.728 acre tract of land described in that certain final order of condemnation entered on November 3, 1958 in the Superior Court of the State of California, in and for the County of Santa Clara in that certain action entitled, "The People of the State of California, Acting By and Through the Department of Public Works, Plaintiff, vs. Louis A. Felice et ai, Defendants Case No. 103483," a certified copy of which order was filed for record in the Office of the Recorder of the County of Santa Clara, State of California, on November 3, 1958 In Book 4219 Official Records, Page 701, Santa Clara County Records (shown as South 33 deg 16' 39" East 246.03 feet; thence North 33 deg 16' 30" West along said prolongation and the said Westerly line of the 3.728 acre tract for a distance of 376.66 feet to the Northwesterly corner of said 3.728 acre tract, said point also being the Southwesterly corner of that certain 1.567 acre tract of land described as Parcel Two in the Deed to said State of California above referred to; thence North 24 deg 18' 19" West along the Westerly line of said 1.567 acre tract for a distance of 94.17 feet, thence North 37 deg 18' 07" East continuing along said Westerly line of the 1.567 acre tract and its Northeasterly prolongation for a distance of 254.41 feet to the Northeasterly corner of that certain tract of land described in the Deed from the State of California, to the De Bell Corporation, a California Corporation, dated August 30, 1957, recorded September 27, 1957 in Book 3900 Official Records, Page 632, Santa Clara County Records; thence North 88 deg 39' 04" West along the Northerly line of land so described in the Deed to said De Bell Corporation for a distance of 433.45 feet to the Northwesterly corner thereof; thence South 1 deg 47' West along the Westerly line of land so described in the Deed to said De Bell Corporation for a distance of 64.46 feet to the Southwesterly corner thereof in the Northerly line of that certain 160.91 acre tract of land described as Parcel Three in the Deed from Jack De Bell et ux, to the De Bell Corporation, a California Corporation, dated October 26, 1956, recorded April 29, 1957 in Book 3786 Official Records Page 463, Santa Clara County Records; thence North 88 deg 13' West along said Northerly line of the 160.91 acre tract for a distance of 291.56 feet to the Northeasterly corner of the said 24.07 acre tract above referred to; thence South 23 deg 11' West along the Easterly line of said 24.07 acre tract for a distance of 130 feet more or less to the Point of Beginning. Excepting from the above described Parcel One, the following described parcel of land: Beginning at the point of intersection of the Northeasterly line of Hecker Pass Road, as said line was established by Parcell in the Deed from De Bell Corporation, a Corporation, to the State of California, dated June 12, 1957, recorded July 30, 1957 in Book 3855 Official Records, Page 512, Santa Clara County Records, with the Northwesterly line of that certain 160.91 acre tract of land described as Parcel Three in the Deed from Jack De Bell et UX, to the De Bell Corporation, a California Corporation, dated October 26, 1956, recorded April 29, 1957 in Book 3736 Official Records, Page 463, Santa Clara County Records; thence from said Point of Beginning South 60 deg 42' 34" East along said Northeasterly line of Hecker Pass Road, for a distance of 80.00 feet, thence leaving said last mentioned line and running North 29 deg 17' 26" East 170 feet, more or less, Exhibit Page - Legal( exhibit)(08-07) to the point of intersection thereof with the Southwesterly line of the Old Hecker Pass road; thence South 66 deg 15' East along said Southwesterly line of the Old Hecker Pass Road for a distance of 270.00 feet; thence leaving said last mentioned line and running North 23 deg 00' East 99.6 feet to the True Point of Beginning of the tract of land to be described; thence from said True Point of Beginning North 67 deg 00' West 10.00 feet; thence at right angles North 23 deg 00' East 20.00 feet; thence at right angles South 67 deg 00' East 20.00 feet; thence at right angles South 23 deg 00' West 20.00 feet; thence at right angles North 67 deg 00' West 10.00 feet to the True Point of Beginning. APN 783-05-011 AND 013 PARCEL TWO: Beginning at the point of intersection of the Northeasterly line of Hecker Pass Road, as said line was established by Parcell in the Deed from the De Bell Corporation, a Corporation, to the State of California, dated June 21, 1957, recorded July 30, 1957 in Book 3855 Official Records, Page 512, Santa Clara County Records, with the Northwesterly line of that certain 160.91 acre tract of land described as Parcel Three in the Deed from Jack De Bell, et UX, to the De Bell Corporation, a California Corporation, dated October 26, 1956, recorded April 29, 1957 in Book 3736 Official Records, Page 463, Santa Clara County Records; thence from said Point of Beginning South 60 deg 42' 34" East along said Southeasterly line of Hecker Pass Road for a distance of 80.00 feet, thence leaving said last mentioned line and running North 29 deg 17' 26" East 170 feet, more or less, to the point of intersection thereof with the Southwesterly line of the Old Hecker Pass Road; thence South 66 deg 15' East along said Southwesterly line of the Old Hecker Pass Road for a distance of 270.00 feet; thence leaving said last mentioned line and running North 23 deg 00' East 99.6 feet to the True Point of Beginning of the tract of land to be described; thence from said True Point of Beginning North 67 deg 00' West 10.00 feet; thence at right angles North 23 deg 00' East 20.00 feet; thence at right angles South 67 deg 00' East 20.00 feet; thence at right angles South 23 deg 00' West 20.00 feet; thence at right angles North 67 deg 00' West 10.00 feet to the True Point of Beginning. APN 783-05-012 PARCEL THREE: A Portion of Parcels One and Four as shown on that Parcel Map recorded in Book 494 of Maps at Page 43, Santa Clara County, and a Portion of Lands of Blocher, I 361 O.R. 202, Santa Clara County Records, described as follows: Beginning at a Point on the West Line of said Parcel four, said Point also being at the Northeastern most corner of Parcel Three as shown on said Parcel Map said Point also lying on the West line of Lands of Nob Hill General Store, Inc., a California Corporation, as described in that Deed recorded in K805 of Official Records at page 1589, Santa Clara County, and proceeding along the Westerly, Southerly, Easterly and Northerly lines of said Parcel four and said lands of Nob Hill the following courses: 1. S 0 deg. 03' 40" W 778.37 feet 2. East 70.00 feet 3. S 17 deg. 45' 49" E 294.02 feet 4. West 160.00 feet 5. SO deg. 03' 40" W 418.87 feet 6. S 0 deg. 13' 40" W 4094.58 feet 7. East 1254.00 feet 8. N 0 deg. 14' E 4527.60 feet 9. N 0 deg. 02' W 1672.30 feet 10. N 67 deg. 23' W 262.00 feet 11. N 49 deg. 20' 30" W 98.97 feet 12. N 31 deg. 26' W 154.34 feet 13. S 37 deg. 18' 09 W 85.48 feet 14. N 42 deg. 54' 55" W 294.28 feet 15. N 38 deg. 11' 51" W 55.00 feet 16. N 72 deg. 45' 58" W 83.84 feet 17. S 66 deg. 33' 05" W 57.31 feet 18. N 69 deg. 23' 35" W 301.68 feet Exhibit Page - Legal(exhibit)(08-07) to the Easternmost corner of those lands conveyed to the State of California by J627 of Official Records at page 1271, Santa Clara County; thence along the Southerly line of last said lands S 83 deg. 53' 57" W 44.13 feet; thence Northwesterly along a 1585 Foot radius curve to the right, from a tangent bearing N 82 deg. 52' 34" W., said curve having an interior angle of 18 deg. 50' 48", and a length of 521.36 feet to a point lying 91.84 feet Southerly along the said 1585 Foot radius curve from an angle point in last said Southerly line; thence S 0 deg. 09' W 419.62 feet; thence S 17 deg. 14' 00" E 810.00 feet; thence S 20 deg. 16' 11" W 194.80 feet to a point on the Northeasterly line of said Parcel Three, last said point being N 69 deg. 43' 49" W 288.41 feet from the Northeasterly corner of said Parcel Three; thence S 69 deg. 43' 49" E. 288.41 feet to the Point of Beginning. Excepting therefrom the following described parcel of land: Beginning at the Northeastern most corner of said Parcel Four and proceeding S 00 deg. 09' 33" E along the East line of said Parcel Four, 269.81 feet to the Westerly terminus of the Northeast line of a Pedestrian/Equestrian Easement as shown on Parcel One on that Parcel Map recorded in Book 663 of Maps at Pages 13 and 14, Santa Clara County Records; thence N 30 deg. 15' W 412.10 feet more or less to a point on the Northeasterly line of said Parcel Four; thence S 67 deg. 23' E 224.09 feet along last said line to the Point of Beginning. Also excepting therefrom "Parcel C" as described in that certain Certificate of Compliance recorded April 14, 1998 as Instrument No. 14139227, Official Records of Santa Clara County, and being more particularly described as follows: A portion of real property located in the County of Santa Clara, State of California, described as follows: All of Parcel Four as shown on that Parcel Map recorded in Book 494 of Maps at Page 43, Santa Clara County Records, Except therefrom the following: Beginning at the Northeasternmost corner of said Parcel Four and proceeding S 00009'33" E along the East line of said Parcel Four, 269.81 feet to the Westerly terminus of the Northeast line of a Pedestrian/Equestrian Easement as shown on Parcel One on that Parcel Map recorded in Book 663 of Maps at Pages 13 and 14, Santa Clara County Records; thence N 30015' W 412.10 feet more or less to a point on the Northeasterly line of said Parcel Four; thence S 67023' E. 224.09 feet along last said line to the point of beginning. APN 810-17-026, 810-17-029 PARCEL FOUR: A portion of Parcels Two and Three as shown on that Parcel Map recorded in Book 494 of Maps, at page 43, Santa Clara County Records, lying in Santa Clara County, California, described as follows: Beginning at a point on the South line of said Parcel Two, said point lying S 89 deg. 35' 00" W 145.44 feet from the Southeasterly angle point in said Parcel Two, last said angle point being produced by the courses S 17 deg. 40' 40" W 105.66 feet and S 89 deg. 35' 00" W 428.05 feet as shown on said Map; thence along the following courses: COURSE NO. 1. N 19 deg. 21' 40" E 417.99 feet 2. N 76 deg. 19' 19" W 13.90 feet 3. N 17 deg. 40' 40" E 1089.46 feet 4. N 64 deg. 27' 00" E 208.60 feet to a point on the Northeasterly line of said Parcel Two, said point lying N 69 deg. 43' 49" W 9.45 feet from the Northeastern corner of said Parcel Two; thence along the Northestern Line of said Parcels Two and Three and along the Easterly and Southerly line s of said Parcel Three the following courses: Exhibit Page - Legal(exhibit)(08-07) COURSE NO. 5. S 69 deg. 43' 49" E 689.53 feet 6. S. 0 deg. 03' 40" W 778.37 feet 7. East 70.00 feet 8. S 17 deg. 45' 49" W 294.02 feet 9. West 160.00 feet 10. SO deg. 03' 40" W 350.00 feet 11. N. 78 deg. 40' 00" W 1134.00 feet 12. S 17 deg. 40' 40" W 105.66 feet, and 13. S 89 deg. 35' 00" W 145.44 feet to the point of beginning. APN 810-17-014, 015, 021, 024 AND 025 PARCEL FIVE: A non-exclusive easement for Ingress and Egress and for the installation and maintenance of public utilities, appurtenant to the above described parcels, over a strip of land 60.00 feet in width, lying 10.00 feet Westerly of and 50.00 feet Easterly of the following described line: Beginning at a point in the Southwesterly line of the State Highway IV-SCI-32D-1957, distant thereon South 60 deg 14' 20" East 232.40 feet from a concrete monument at Station 325 57.01 E. C. of said Highway and running thence South 57 deg 45' 40" West 161.79 feet; South 41 deg 31' 40" West 262.30 feet; South 31 deg 44' 40" West 311.70 feet; South 3 deg 19' 10" West 344.34 feet; South 23 deg 29' 50" East 166.48 feet; thence Southwesterly 150 feet, more or less, to a point which bears South 71 deg 14' 02" East 94.02 feet and North 19 deg 29' 13" East 110.0 feet from the most Easterly corner of Parcell, as said Parcel is shown upon that certain Map entitled, "Record of Survey being a portion of the solis Rancho", which Map was filed for record in the Office of the Recorder of the County of Santa Clara, State of California on December 7, 1967 in Book 231 of Maps, at Page 22; thence South 19 deg 29' 13" West 110.00 feet and the terminus of said easement, said easement is appurtenant to and for the Benefit of Parcels Three, Four, Seven and Twelve. PARCEL SIX: A non-exclusive easement for Ingress and Egress and for the installation and maintenance of public utilities and for water pipe lines, appurtenant to the above described parcels, over an existing roadway 60.00 feet in width, the center line of which is described as follows: Beginning at the point of intersection of the Easterly line of that certain 160.91 acre tract of land described as Parcel Three in the Deed from Jack De Bell, et ux, to the De Bell Corporation, dated October 26, 1956, recorded April 29, 1957 in Book 3786 Official Records, page 463, Santa Clara County Records, with the Southwesterly line of Hecker Pass Road, as said line was established by Parcel One in the Deed from the De Bell Corporation, to the State of California dated June 12, 1957, recorded July 30, 1957 in Book 3655 Official Records, page 512, Santa Clara County Records; thence from said point of beginning South o deg 05' 19" West along said Easterly line of the 160.91 acre tract for a distance of 1370.09 feet to the True Point of Beginning of the easement to be described; thence from said True Point of Beginning North 69 deg. 43' 49" West 1460.17 feet to the terminus of said easement, said easement is appurtenant to and for the Benefit of Parcels Three, Four and Twelve. Excepting therefrom all that portion thereof lying within the above described Parcels Three and Four. Exhibit Page - Legal( exhibit)(08-07) PARCEL SEVEN: All of Parcel Two, as shown upon that certain Map entitled, "Parcel Map, being a portion of the Las Animas Rancho", which Map was filed for record in the Office of the Recorder of the County of Santa Clara, State of California on October 12, 1993 in Book 650 of Maps, at Page 49. APN 810-18-010 and 011 PARCEL EIGHT: An easement 40 feet in width for ingress and egress and public utilities the centerline of said easement described as follows: Commencing at a point in the centerline of that 60 foot wide easement recorded in Book 7981 of Official Records at Page 56, Santa Clara County Records, said point being the northeast terminius of that course shown as No. 16 on that Parcel Map recorded in Book 494 of Maps, at Page 43, Santa Clara County Records and proceeding 520016'11" W 30.00 feet to a pOint on the southwesterly line of said easement to the Point of Beginning; thence from said Point of Beginning S 27003' W 28.19 feet to station "A"; thence along a curve to the right with a radius of 40 feet at an angle of 60.00 feet for a distance of 41.89 feet to station "B"; thence S 87003' W 28.00 feet to station C; thence along a curve to the left with a radius of 85.47 feet at an angle of 70033'08" for a distance of 105.24 feet to station "0"; thence 5 16029'52"W for a distance of 224.83 feet to station "E"; thence on a curve to the left with a radius of 457.22 feet at an angle of 18037'52" for a distance of 148.68 feet to station "F"; thence 5 2008' E for a distance of 32.29 feet to station "G"; thence on a curve to the right with a radius of 196.58 feet at an angle of 41046' for a distance of 143.30 feet to station "H"; thence S 39038' W for a distance of 151.72 feet to station "I"; thence on a curve to the left with a radius of 250.00 feet at an angle of 45.000 for a distance of 196.34 feet to station "]"; thence 5 5022' E 110.00 feet to station "K"; thence on a curve to the right with a radius of 414.00 feet at an angle of210lO' for a distance of 152.94 feet to station "L"; thence S 15048' W 93.00 feet to station "M"; thence on a curve to the left with a radius of 243.00 feet at an angle of 30031' for a distance of 129.42 feet to station "N"; thence 5 14043' E 456.60 feet more or less to a point on the south line of parcel two of said parcel map, last said point being 152.52 feet westerly from the southerly terminus of that course, (5 0025'00" E 89.33 feet), as shown on said parcel map, to station "0", said easement is appurtenant to and for the Benefit of Parcel Seven. PARCEL NINE: An easement for ingress and egress described as follows: Beginning at the point of beginning of the above described 40 foot wide easement and running 569043'49" E 20.00 feet to the easterly line of said 40.00 foot wide easement being the true point of beginning; thence S 69043'49" E along the southwesterly line of the 60.00 foot easement (7981-or-56) 30 feet; thence 80 feet more or less southwesterly to the mid point (on the southeast line of above described 40 foot easement) of the 40.00 foot radius (centerline) curve; thence northeasterly along the southeasterly line of said 40.00' foot wide easement above described 60 feet more or less to true point of beginning, said easement is appurtenant to and for the Benefit of Parcel Seven. PARCEL TEN: A 10 foot wide easement for ingress and egress. The easterly line of said easement described as follows: Commencing at above station "L" and running S 15048'W 40.00 feet and N 74012' W 20.00 feet to the True Point of Beginning; thence S 15048' W 53.00 feet; thence southerly along a 263.00 foot radius curve to the left, having an interior angle of 17025'42" a distance of 80.00 feet to the terminus of said easement, said easement is appurtenant to and for the Exhibit Page - Legal(exhibit)(08-07) Jenefit of Parcel Seven. PARCEL ELEVEN: An easement for ingress-egress said easement described as follows: Commencing at said station "0", and proceeding S 89035' W along the Southerly line of Parcel Two as shown on Parcel Map recorded in Book 494 of Maps at Page 43, Santa Clara County Records 20.64 feet to the True Point of Beginning; thence continuing S 89035' W 25.00 feet; thence N 37026'15" E 30.68 feet to a point on the Southwesterly line of the 40 foot wide easement above described; thence S 14043' E 25.00 feet to the Point of Beginning, said easement is appurtenant to and for the Benefit of Parcel Seven. PARCEL TWELVE: A Portion of Parcels One and Four as shown on that Parcel Map recorded in Book 494 of Maps at Page 43, Santa Clara County, and a Portion of Lands of Blocher, 1361 O.R. 202, Santa Clara County Records, described as follows: Beginning at a Point on the West Line of said Parcel four, said Point also being at the Northeastern most corner of Parcel Three as shown on said Parcel Map said Point also lying on the West line of Lands of Nab Hill General Store, Inc., a California Corporation, as described in that Deed recorded in K805 of Official Records at page 1589, Santa Clara County, and proceeding along the Westerly, Southerly, Easterly and Northerly lines of said Parcel four and said lands of Nob Hill the following courses: COURSE NO. 1. SO deg. 03' 40" W 778.37 feet 2. East 70.00 feet 3. S 17 deg. 45' 49" E 294.02 feet 4. West 160.00 feet 5. SO deg. 03' 40" W 418.87 feet 6. SO deg. 13' 40" W 4094.58 feet 7. East 1254.00 feet 8. N 0 deg. 14' E 4527.60 feet 9. N 0 deg. 02' W 1672.30 feet 10. N 67 deg. 23' W 262.00 feet 11. N 49 deg. 20' 30"W 98.97 feet 12. N 31 deg. 26' W 154.34 feet 13. S 37 deg. 18' 09 W 85.48 feet 14. N 42 deg. 54' 55" W 294.28 feet 15. N 38 deg. 11' 51" W 55.00 feet 16. N 72 deg. 45' 58" W 83.84 feet 17. S 66 deg. 33' 05" W 57.31 feet 18. N 69 deg. 23' 35" W 301.68 feet to the Easternmost corner of those lands conveyed to the State of California by J627 of Official Records at page 1271, Santa Clara County; thence along the Southerly line of last said lands S 83 deg. 53' 57" W 44.13 feet; thence Northwesterly along a 1585 Foot radius curve to the right, from a tangent bearing N 82 deg. 52' 34" W., said curve having an interior angle of 18 deg. 50' 48", and a length of 521.36 feet to a point lying 91.84 feet Southerly along the said 1585 Foot radius curve from an angle point in last said Southerly line; thence S 0 deg. 09' W 419.62 feet; thence S 17 deg. 14' 00" E 810.00 feet; thence S 20 deg. 16' 11" W 194.80 feet to a point on the Northeasterly line of said Parcel Three, last said point being N 69 deg. 43' 49" W 288.41 feet from the Northeasterly corner of said Parcel Three; thence S 69 deg. 43' 49" E. 288.41 feet to the Point of Beginning. Exhibit Page - Legal(exhibit)(08-07) Excepting therefrom the the following described parcel of land: Beginning at the Northeastern most corner of said Parcel Four and proceeding S 00 deg. 09' 33" E along the East line of said Parcel Four, 269.81 feet to the Westerly terminus of the Northeast line of a Pedestrian/Equestrian Easement as shown on Parcel One on that Parcel Map recorded in Book 663 of Maps at Pages 13 and 14, Santa Clara County Records; thence N 30 deg. 15' W 412.10 feet more or less to a point on the Northeasterly line of said Parcel Four; thence S 67 deg. 23' E 224.09 feet along last said line to the Point of Beginning. Excepting therefrom all that portion lying Westerly of the Westerly line of said Parcel 4 And, in addition thereto, the following parcel of land designated as "Transfer Parcel" on the accompanying plat entitled "Exhibit B", being more particularly described as follows: A portion of Parcel B, as said Parcel is described in that certain Certificate of Compliance for Lot Line Adjustment filed for record as Document Number 14139227, Official Records of Santa Clara County, California, being more particularly described as follows: BEGINNING at southwesterly corner of said Parcel B, said point also being the southerly terminus of the course designated as S 00 02" E 1672.30 feet on that certain Lot Line Adjustment Parcel Map filed for record in Book 494 of Maps, at Page 43, Records of Santa Clara County, California, and the northwest corner of Lot 61, as said Lot 61 is shown on the map of Tract 9365, Eagle Ridge, filed for record in Book 748 of Maps, at Page 20, Records of Santa Clara County, California; thence running along the common line of said Parcel B and Parcel C 1.) N 000 09' 33" W, a distance of 1,402.67 feet to the northwesterly corner of said Parcel B; thence leaving said common line and running along the northerly line of said Parcel B 2.) S 310 08' 00" E, a distance of 282.40 feet to the beginning of a curve to the left having a radius of 193.00 feet; thence continuing along said northerly line 3.) Southeasterly along said curve, through a central angle of 490 07' 00", a distance of 165.45 feet to the beginning of a compound curve to the left having a radius of 632.00 feet; thence continuing along said northerly line 4.) Easterly along said curve, through a central angle of 230 25' 00", a distance of 258.30 feet; thence continuing along said northerly line 5.) N 76020' 00" E, a distance of 499.27 feet to the beginning of a curve to the right having a radius of 1,360.00 feet; thence continuing along said northerly line 6.) Easterly along said curve, through a central angle of 130 40' 00"; a distance of 324.40 feet; thence continuing along said northerly line 7.) East, a distance of 88.59 feet to the beginning of a curve to the left having a radius of 65.00 feet; thence continuing along said northerly line 8.) Easterly along said curve, through a central angle of 040 37' 09"; a distance of 5.24 feet; thence continuing along said northerly line 9.) S 000 36' 00" E, a distance of 0.34 feet; thence continuing along said northerly line Exhibit Page - Legal(exhibit)(08-07) 10.) 589059' 56" E, a distance of 240.84 feet to the northeasterly corner of said Parcel B; thence leaving said northerly line and running along the easterly line of said Parcel B 11.) 500008' 00" E, a distance of 304.39 feet; thence leaving said easterly line 12.) 5 87059' 43" W, a distance of 330.76 feet; thence 13.) N 890 02' 02" W, a distance of 222.92 feet; thence 14.) 5 840 51' 07" W, a distance of 357.84 feet; thence 15.) S 76021' 10" W, a distance of 402.59 feet; thence 16.) N 880 13' 32" W, a distance of 194.26 feet; thence 17.) N 630 29' 09" W, a distance of 72.82 feet; thence 18.) 521041' 39" W, a distance of 190.51 feet; thence 19.) 5 000 46' 42" E, a distance of 146.48 feet; thence 20.) 5 090 19' 49" E, a distance of 120.58 feet; thence 21.) 502029' 27" W, a distance of 36.13 feet; thence 22.) S 040 18' 56" W, a distance of 178.81 feet; thence 23.) S 000 OT 43" W, a distance of 178.08 feet to the southerly line of said Parcel B, also being the northerly line of said Lot 61 of Tract 9365; thence running along said southerly line of Parcel B and northerly line of Lot 61 24.) N 89" 52' 17" W, a distance of 48.11 feet to the POINT OF BEGINNING. Being Parcel C as described in the Certificate of Compliance Recorded May 2, 2005 as Instrument No. 18348300. APN 810-18-002; 810-19-005,007,010,011, and 014 PARCEL THIRTEEN: An Easement for the purposes of Ingress and Egress and Utilities, as conveyed to Bonfante Gardens, Inc., a Delaware Non- Profit corporation by Grant Deed recorded April 28, 1999 as Instrument No. 14780039, and being more particularly described as follows: Beginning at a point on the East line of Parcel Four as shown upon that Parcel Map recorded in Book 494 of Maps at Page 43, Exhibit Page - Legal(exhibit)(08-07) Santa Clara County Records, said point being the Southwest corner of Parcel One as shown upon that Parcel Map recorded in Book 663 of Maps at Pages 13 and 14, Santa Clara County Records; thence Southerly alond said East line of Parcel Four, 360.00 feet; thence S. 89 deg. 52' 17" E. 60.00 feet; thence Northerly 360.00 feet to a point on the South line of said Parcel One, last said point lying S. 89 deg. 52' 17" E. 60.00 feet from the point of beginning; thence N. 89 deg. 52' 17" W. 60.00 feet to the point of beginning. Exhibit Page - Legal( exhibit)(08-07) EXHIBIT B [Intentionally Omitted] -1- IKKSI744417.12 022508-04706118 EXHIBIT C Fonn ofInsurance Policies To Be Maintained by Gilroy Gardens: 1. Property Choice (Business Property), Hartford Fire Insurance Company, Policy No. 57 UUM TM5946 2. Automobile Liability, ACE American Insurance Company, Policy No. H08134364 3. Commercial General Liability, ACE American Insurance Company, Policy No. G2 1762 428 4. Employee Benefits Liability (Employers Liability), Majestic Insurance, Policy No. C200603365-02 5. Directors & Officers Liability and Entity Liability, Executive Risk Indemnity Inc. (Chubb Group ofInsurance Companies), Policy No. 8165-2558 6. Excess Liability Policy, ACE American Insurance Company (Underlying Insurance: Commercial General Liability, Automobile Liability, Employers Liability), Policy No. XCP N01l42951 001 7. Excess Directors & Officers Liability, RSUI Indemnity Company, Policy No. HS625865 -1- IKKSI744417.12 022508-04706118 EXHIBIT D MEMORANDUM RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Gilroy 7351 Rosanna Street Gilroy, California 95020 Attn: City Clerk RECORDING REQUESTED PURSUANT TO GOVERNMENT CODE SECTIONS 6103 AND 27383. SPACE ABOVE THIS LINE FOR RECORDER'S USE MEMORANDUM THIS MEMORANDUM is entered into as of , 2008, by and between the CITY OF GILROY, a municipal corporation ("Landlord") and GILROY GARDENS F AMIL Y THEME PARK, a Delaware nonprofit corporation formerly known as "Bonfante Gardens, Inc." ("Tenant"), with respect that certain unrecorded Lease dated as of the date hereof by and between Landlord and Tenant. Pursuant to said Lease, Landlord leases to Tenant, and Tenant leases from Landlord, certain real property located in the City of Gilroy, County of Santa Clara, State of California, as more particularly described in Exhibit A attached hereto, together with the buildings and other improvements thereon, upon the terms and conditions of the Lease. The term of the Lease shall be for approximately two (2) years commencing on the date hereof and expiring at midnight on February 28, 2010, subject to sooner termination as set forth in the Lease. This Memorandum shall incorporate all of the provisions of the Lease as though fully set forth herein. This Memorandum is entered by the parties for purposes of recordation and shall not be deemed to modify, amend, alter, limit or otherwise change any of the provisions of the Lease. In the event of any conflict or ambiguity between the terms of this Memorandum and the terms ofthe Lease, the terms of the Lease shall prevail. -1- IKKSI744417.12 022508-04706118 IN WITNESS WHEREOF, Landlord and Tenant have duly executed this Memorandum as of the dates set forth below. GILROY GARDENS F AMIL Y THEME PARK, INC., a Delaware nonprofit public benefit corporation formerly known as "Bonfante Gardens, Inc." By: Its: By: Its: CITY OF GILROY, a municipal corporation By: Its: Attest: By: Approved as to form: By: City Attorney -2- IKKSI744417.12 022508-04706118 STATE OF CALIFORNIA } ss COUNTY OF On before me, , Notary Public, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing is true and correct. WITNESS my hand and official seal. [Seal] SIGNATURE OF NOTARY STATE OF CALIFORNIA } 's. COUNTY OF On before me, , Notary Public, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing is true and correct. WITNESS my hand and official seal. [Seal] SIGNATURE OF NOTARY -3- IKKSI7 44417.12 022508-04706118 EXHIBIT A TO MEMORANDUM [Legal Description to be Attached] -4- IKKSI744417.12 022508-04706118 EXHIBIT C LIST OF LEASED EQUIPMENT 1. 110' x 120' structure, approximately 13,200 square feet, using Lattice Beam Design with premium Tedlar coated opaque membrane, leased from Sprung Instant Structures, Inc. 2. Scooterbug strollers/wheelchairs (40 Scooterbug Single units, 40 Scooterbug Double units, 17 Wheelchair units, and 3 ECV units), leased from Scooterbug, Inc. 3. Color Laser Printers and certain related equipment (customer picture displays and order tenninals, image acquisition and storage servers, multiple display server systems, network equipment, fiber optic transmission equipment, X700 cameras, lenses and enclosures, wireless hand-held cameras, Samsung 15" LCD displays, sensors (2), Big Shot Strobe, Multimon 19" LCD Displays, system controllers, cabinet cooling fans and vents), leased from Colorvision International, Inc. 4. Lighting displays and ice rink components, leased from Midwest Display, Inc. 5. Certain liyestock and animals, leased from Wild Things Animal Rentals, Inc. 6. Copy Machine, leased from Marlin Leasing Corp. 7. Mailing Machine, leased from Pitney Bowes. \TMORELL\734864.15 011708-04706118 -1- EXHIBIT D BOND ESCROW AGREEMENT (See attached pages.) \TMORELL\734864.15 011708-04706118 -1- Jones Hall A Professional Law Corporation Execution Copy ESCROW AGREEMENT This ESCROW AGREEMENT (this "Agreement"), dated as of February 27, 2008, is between the CITY OF GILROY, a charter city and municipal corporation organized and existing under the Constitution and laws of the State of California (the "City"), GILROY GARDENS FAMILY THEME PARK, INC., a Delaware nonprofit corporation, previously known as "Bonfante Gardens Inc." (the "Corporation"), and U.S. BANK NATIONAL ASSOCIATION, a national banking association organized and existing under the laws of the United States of America, as escrow bank (the "Escrow Bank"). BACKGROUND: 1. The City has previously issued its City of Gilroy Senior Lien Project Revenue Bonds (Bonfante Gardens Theme Park Project), Series 2000 in the aggregate principal amount of $27,920,000 (the "2000 Bonds") under that certain Senior Lien Bond Trust Indenture dated December 1, 2000 as amended by that certain First Supplemental Indenture, dated as of June 1, 2005 (the "First Supplemental Indenture") (together with the First Supplemental Indenture, the "Indenture") between the City and BNY Western Trust Company, as ultimately succeeded by U.S. Bank National Association, of which $15,875,000 in aggregate principal amount has previously matured, been redeemed or retired in accordance with the Indenture. 2. Proceeds of the 2000 Bonds have been applied by the City to make a loan to the Corporation under the Senior Lien Loan Agreement dated as of December 1, 2000 (the "Loan Agreement"), for the purpose of providing funds to finance the acquisition and construction of a theme park in the City of Gilroy (the "Theme Park"). 3. Concurrently with the execution of this Agreement, the City is purchasing the Theme Park from the Corporation under a Purchase and Sale Agreement (the "Purchase Agreement"), for a purchase price which is sufficient to enable the Corporation to pay and prepay in full its Loan Repayment obligations under the Loan Agreement and thereby provide sufficient funds to pay the principal of and interest on the remaining outstanding 2000 Bonds in the aggregate principal amount of $5,520,000, as such 2000 Bonds are described more fully in Appendix A hereto (the "Refunded 2000 Bonds"). 4. The City and the Corporation have requested the Escrow Bank to enter into this Agreement for the purpose of providing the terms and conditions relating to the deposit and application of moneys and securities to provide for the payment and redemption of the Refunded 2000 Bonds under and in accordance with the provisions of the Indenture. AGREEMENT: In consideration of the above premises and of the mutual promises and covenants herein contained and for other valuable consideration, the parties hereto do hereby agree as follows: SECTION 1. Deposit of Funds on Closing Date. On February 27, 2008 (the "Closing Date"), the Corporation shall cause to be transferred to the Escrow Bank the amount of $6,579,284.76 (the "Initial Deposit") in immediately available funds, to be applied by the Escrow Bank as follows: (a) the amount of $6,479,284.76 shall be deposited into the Escrow Fund which is established under Section 2(a); and (b) the amount of $100,000.00 shall be deposited into the Administrative Costs Fund which is established under Section 2(b), The Initial Deposit shall be derived from the funds payable to the Corporation by the City as the purchase price of the Theme Park under the Purchase Agreement. SECTION 2. Establishment of Funds. (a) Escrow Fund. There is hereby created an escrow fund designated the "City of Gilroy 2000 Bonds Escrow Fund" (the "Escrow Fund") to be held by the Escrow Bank as an irrevocable escrow securing the payment and redemption of the Refunded 2000 Bonds as hereinafter set forth. All cash and securities in the Escrow Fund are hereby irrevocably pledged as a special fund for the payment and redemption of the Refunded 2000 Bonds in accordance with the Indenture. If at any time the Escrow Bank receives knowledge that the cash and securities in the Escrow Fund will not be sufficient to make any payment required by Section 4, the Escrow Bank shall notify the City of such fact and the City shall immediately cure such deficiency from any source of legally available funds. The Escrow Bank has no liability for the sufficiency of funds under this Agreement. (b) Administrative Costs Fund. There is hereby created a fund (the "Administrative Costs Fund") to be held by the Escrow Bank for the purpose of paying the costs of establishing and administering the Escrow Fund. Amounts on deposit in the Administrative Costs Fund shall be disbursed by the Escrow Bank on the Closing Date to make payments to the payees identified in Appendix B hereto, in the respective amounts set forth in Appendix B. SECTION 3. Investment of Amounts in Escrow Fund. The Escrow Agent shall invest $6,479,284.00 of the moneys deposited into the Escrow Fund on the Closing Date in the United States Treasury Security, State and Local Government Securities described below (the "Defeasance Securities"), and shall hold the remaining $0.76 in cash uninvested. Maturity Interest Total Date Par Amount Rate Purchase Price May 1 , 2008 $ 204,062 2.340% $ 204,062 November 1 , 2008 556,296 2.040 556,296 May 1 , 2009 152,889 1.990 152,889 November 1, 2009 579,410 1.920 579,410 May 1, 2010 142,654 1.850 142,654 November 1 , 2010 4,843,973 1.940 4,843,973 SECTION 4. Instructions as to Application of Escrow Fund. The Escrow Agent shall apply the cash and Defeasance Securities held in the Escrow Fund for the sole purpose of paying and redeeming the Refunded 2000 Bonds on the dates and in the amounts as set forth below: -2- Payment Date May 1, 2008 November 1, 2008 May 1, 2009 November 1, 2009 May 1, 2010 November 1, 2010 Interest $ 224,375.00 224,375.00 208,278.75 208,278.75 190,960.00 190,960.00 Mandatory Sinking Fund Redemption Principal to Be Optionally Redeemed Total Pavment $ 224,375.00 619,375.00 208,278.75 633,278.75 190,960.00 4,890,960.00 $ 395,000 425,000 455,000 $ 4,245,000 The Escrow Bank has no lien upon or right of set off against the Defeasance Securities and cash at any time on deposit in the Escrow Fund. SECTION 5. Proceedings for Redemption of 2000 Bonds. The City hereby irrevocably elects to redeem all of the outstanding Refunded 2000 Bonds on November 1, 2010, under Section 4.01 (b) of the Indenture. The City hereby directs the Escrow Bank to give notice of redemption of the Refunded 2000 Bonds in accordance with Section 4.03 of the Indenture, at the expense of the City. Such notice shall be in substantially the form set forth in Appendix C hereto. SECTION 6. Effect of Escrow Fund Deposit. The deposit made into the Escrow Fund under this Agreement constitutes an irrevocable deposit for the payment and redemption of the Refunded 2000 Bonds in accordance with Article X of the 2000 Bond Indenture. In accordance with Section 10.01 of the Indenture, the City hereby signifies its intention to discharge all of the outstanding Refunded 2000 Bonds and thereby to discharge the 2000 Bond Indenture. Upon the deposit of amounts in the Escrow Fund and the purchase of the Defeasance Securities in accordance with Section 3, all liability of the City in respect of the Refunded 2000 Bonds shall be discharged under Article X of the Indenture, and the Refunded 2000 Bonds shall no longer be Outstanding under and within the meaning of the Indenture. The deposit made into the Escrow Fund under this Agreement further constitutes an irrevocable deposit for the payment and prepayment in full of the Loan Repayments due by the Corporation under and as defined in the Loan Agreement. Upon the deposit of amounts in the Escrow Fund and the purchase of the Defeasance Securities in accordance with Section 3, no further Loan Repayments shall be due and payable by the Corporation under the Loan Agreement. SECTION 7. Discharge of Financing Documents; Disposition of Excess Funds. In order to effectuate the provisions of Section 6, on the Closing Date the Escrow Bank shall: (a) execute and deliver a Deed of Reconveyance removing the Deed of Trust, Security Agreement and Fixture Filing with Assignment of Rents and Leases dated December 1, 2000, which was recorded on January 11, 2001, as Instrument No. 15523372 in the Official Records of the County of Santa Clara, California, as an encumbrance on Theme Park; (b) deliver to Chicago Title Company, for remittance to the Corporation, all amounts held by the Escrow Bank in the funds and accounts established under the 2000 Bond Indenture, in accordance with the following wire transfer instructions: -3- Chicago Title Company ABA 026 009 593 Accou nt No. 12353-81969 For Account of Escrow: 07 -98702516-JW Reference: Gilroy Gardens (c) file an appropriate UCC-3 Form and make all other filings as may be required to terminate any security interests which have previously been made by the Trustee with respect to the funds and assets pledged under the Indenture for the payment of the 2000 Bonds. SECTION 8. Notice of Advance Refunding and Defeasance. The City hereby directs the Escrow Bank to give notice of the advance refunding and defeasance of the Refunded 2000 Bonds to the Owners thereof, at the expense of the City. Such notice shall be mailed to the registered owners of the Refunded 2000 Bonds within 30 days following the date hereof, and shall be in substantially the form set forth in Appendix D hereto. SECTION 9. Application of Certain Terms of 2000 Bond Indenture. All of the terms of the Indenture, including those terms relating to the payment and redemption of principal of and interest on the Refunded 2000 Bonds, are incorporated in this Agreement except to the extent terms are otherwise defined herein. SECTION 10. Compensation to Escrow Bank. The City shall pay the Escrow Bank full compensation for its duties under this Agreement, including out-of-pocket costs such as publication costs, redemption expenses, legal fees and other costs and expenses relating hereto and, in addition, all fees, costs and expenses relating to the purchase, substitution or withdrawal of any securities after the date hereof. Under no circumstances shall amounts deposited in or credited to the Escrow Fund be deemed to be available for said purposes. SECTION 11. Liabilities and Obligations of Escrow Bank. (a) The Escrow Bank has no obligation to make any payment or disbursement of any type or incur any financial liability in the performance of its duties under this Agreement unless the City has deposited sufficient funds therefor with the Escrow Bank. The Escrow Bank may rely and is fully protected in acting upon the written or oral instructions of the City, the Corporation or their respective agents relating to any matter or action as Escrow Bank under this Agreement. (b) The Escrow Bank and its respective successors, assigns, agents and servants shall not be held to any personal liability whatsoever, in tort, contract, or otherwise in connection with the execution and delivery of this Agreement, the establishment of the Escrow Fund, the acceptance of the moneys or any securities deposited therein, the purchase of the securities to be purchased pursuant hereto, the retention of such securities or the proceeds thereof, the sufficiency of the securities or any uninvested moneys held hereunder to accomplish the defeasance of the Refunded 2000 Bonds, or any payment, transfer or other application of moneys or securities by the Escrow Bank in accordance wit the provisions of this Agreement or by reason of any non-negligent act, non-negligent omission or non-negligent error of the Escrow Bank made in good faith in the conduct of its duties. -4- (c) The recitals of fact contained herein shall be taken as the statement of the City and the Corporation, and the Escrow Bank assumes no responsibility for the correctness thereof. The Escrow Bank makes no representations as to the sufficiency of the securities to be purchased pursuant hereto and any uninvested moneys to accomplish the redemption of the Refunded 2000 Bonds, or to the validity of this Agreement as to the City and the Corporation and, except as otherwise provided herein, the Escrow Bank has no liability in respect thereof. (d) The Escrow Bank is not liable in connection with the performance of its duties under this Agreement except for its own negligence, willful misconduct or default, and the duties and obligations of the Escrow Bank shall be determined by the express provisions of this Agreement. (e) The Escrow Bank may consult with counsel, who mayor may not be counsel to the City or the Corporation, and in reliance upon the written opinion of such counsel shall have full and complete authorization and protection in respect of any action taken, suffered or omitted by it in good faith in accordance therewith. Whenever the Escrow Bank deems it necessary or desirable that a matter be proved or established prior to taking, suffering, or omitting any action under this Agreement, such matter (except the matters set forth herein as specifically requiring a certificate of a nationally recognized firm of independent certified public accountants or an opinion of counsel) may be deemed to be conclusively established by a written certification of the City or the Corporation. (f) The City hereby assumes liability for, and hereby agrees (whether or not any of the transactions contemplated hereby are consummated), to the extent permitted by law, to indemnify, protect, save and hold harmless the Escrow Bank and its respective successors, assigns, agents and servants from and against any and all liabilities, obligations, losses, damages, penalties, claims, actions, suits, costs, expenses and disbursements (including legal fees and disbursements) of whatsoever nature which may be imposed on, incurred by, or asserted against, at any time the Escrow Bank (whether or not also indemnified against by any other person under any other agreement or instrument) and in any way relating to or arising out of the execution and delivery of this Agreement, the establishment of the Escrow Fund, the retention of the moneys therein and any payment, transfer or other application of moneys or securities by the Escrow Bank in accordance with the provisions of this Agreement, or as may arise by reason of any act, omission or error of the Escrow Bank made in good faith in the conduct of its duties. However, the City is not required to indemnify the Escrow Bank against its own negligence or willful misconduct. The indemnities contained in this Section 8 and the compensation and reimbursement contained in Section 7 shall survive the termination of this Agreement or the resignation or removal of the Escrow Agent. (g) The Escrow Bank has no liability for losses arising from any investment made under this Agreement. (h) Any company into which the Escrow Bank may be merged or converted or with which it may be consolidated or any company resulting from any merger, conversion or consolidation to which it shall be a party or any company to which the Escrow Bank may sell or transfer all or substantially all of its corporate trust business shall be the successor to the Escrow Bank without the execution or filing of any paper or further act, anything herein to the contrary notwithstanding. -5- (i) The liability of the Escrow Bank to make the payments required by this Agreement shall be limited to the moneys and securities in the Escrow Fund. U) No provision of this Agreement requires the Escrow Bank to expend or risk its own funds or otherwise incur any financial liability in the performance or exercise of any of its duties hereunder, or in the exercise of its rights or powers, if it has reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured to it. SECTION 12. Statements. The Escrow Bank will submit to the City a statement within thirty (30) days after each calendar month, commencing March 1, 2008, itemizing all moneys received by it and all payments made by it under the provisions of this Agreement during the preceding month and listing the Defeasance Securities and cash balances on deposit in the Escrow Fund and all moneys held by it received as interest on or profit from the collection of the Government Securities, as of the date of the report. SECTION 13. Resignation and Discharge of Escrow Agent. The Escrow Bank may resign and thereby become discharged from the trusts hereby created, by written notice mailed to the Corporation and the City by registered or certified mail. Such resignation shall take effect upon the appointment of a new escrow bank hereunder and acceptance of the trusts hereby created. The Escrow Bank shall continue to serve as Escrow Bank until a successor is appointed, and the Escrow Bank may, after 60 days subsequent to its resignation, petition the Superior Court of Santa Clara County, California for the appointment of a successor Escrow Agent if one has not yet been appointed. SECTION 14. Amendment. This Agreement may be amended by the parties hereto, but only if there has been filed with the City, the Corporation and the Escrow Bank a written opinion of nationally-recognized bond counsel stating that such amendment will not materially adversely affect the interests of the owners of the 2000 Bonds, and that such amendment will not cause interest on the 2000 Bonds to become includable in the gross income of the owners thereof for federal income tax purposes. SECTION 15. Execution in Counterparts. This Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. SECTION 16. Notices. All notices and communications to the Escrow Bank shall be addressed in writing to: U.S. Bank National Association Attention: Corporate Trust Services 1021 East Cary Street, 18th Floor Richmond, Virginia 23219 FascimHe: 804-771-7940 -6- All notices and communications to the City shall be addressed in writing to: City of Gilroy, California Attention: City Manager 7351 Rosanna Street Gilroy, California 95020-6197 Facsimile: (408) 846-0500 All notices and communications to the Corporation shall be addressed in writing to: Gilroy Gardens Attention: President 3050 Hecker Pass Highway Gilroy, California 95020 Facsimile: (408) 847-3949 SECTION 17. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California. SECTION 18. Incorporation of Background Recitals. The Background recitals are hereby incorporated into and made a part of this Agreement as if set forth in full. -7- IN WITNESS WHEREOF, the City, the Corporation and the Escrow Bank have each caused this Agreement to be executed by their duly authorized officers all as of the date first above written. CITY By \ GilROY GARDENS FAMilY THEME PARK, INC. . BANK NATIONAL ASSOCIATION, as Escrow Bank By Authorized Officer -8- IN WITNESS WHEREOF, the City, the Corporation and the Escrow Bank have each caused this Agreement to be executed by their duly authorized officers all as of the date first above written. CITY OF GILROY By City Manager GILROY GARDENS FAMILY THEME PARK, INC. By Authorized Officer U.S. BANK NATIONAL ASSOCIATION, as Escrow Bank By -8- APPENDIX A IDENTIFICATION OF 2000 REFUNDED BONDS The 2000 Refunded Bonds consist of those 2000 Bonds maturing on the dates and in the amounts, and having CUSIP numbers, as set forth in the following table: Maturity Date Interest Principal (November 1) Rate Amount CUSIP 2015 8.150% $ 4,175,000 376058M 1 2016 8.250 355,000 376058AD5 2025 8.000 990,000 376058AB9 APPENDIX B ADMINISTRATIVE COSTS TO BE PAID ON CLOSING DATE Payee Name and Address Purpose of Obliqation Amount Jones Hall, A Prof. Law Corp. Bond Counsel Fees $ 27,500.00 650 California Street, 18th Floor San Francisco, California 94010 Northcross, Hills & Ach Financial Advisor Fees 34,500.00 999 Fifth Avenue, Suite 560 San Rafael, California 94901 u.S. Bank National Association Escrow Bank Fees 7,500.00 James Center Two 1021 East Cary Street, 18th Floor Richmond, Virginia 23219 Grant Thornton, LLP Verification Agent Fees 2,500.00 500 Pillsbury Center North 200 Sixth Street Minneapolis, Minnesota 55402-1459 Greenberg Traurig Escrow Bank Counsel 450 South Orange Avenue, Suite 650 Orlando, Florida 32801 APPENDIX C NOTICE OF REDEMPTION CITY OF GILROY SENIOR LIEN PROJECT REVENUE BONDS (BONFANTE GARDENS THEME PARK PROJECT), SERIES 2000 NOTICE IS HEREBY GIVEN pursuant to the Senior Lien Bond Trust Indenture dated as of December 1, 2000, between the City of Gilroy (the "City") and BNY Western Trust Company, as trustee, that all of the outstanding City of Gilroy Senior Lien Project Revenue Bonds (Bonfante Gardens Theme Park Project), Series 2000 (the "Bonds"), have been called for redemption on November 1, 2010, at a redemption price of 100% of the principal amount thereof, plus accrued and unpaid interest thereon to such redemption date. The Bonds to be redeemed are set forth below and are hereinafter referred to as the "Called Bonds": Maturity Date Principal Interest CUSIP (Julv 1) Amount Rate Number 2015 $ 4,175,000 8.150% 376058AA 1 2016 355,000 8.250 376058AD5 2025 990,000 8.000 376058AB9 On November 1, 2010, the Called Bonds will be due and payable upon presentation and surrender thereof at the corporate trust office of U.S. Bank National Association, Richmond, Virginia, the trustee for the Bonds (the "Trustee"), as designated below. From and after November 1, 2010, interest on the Called Bonds will cease to accrue. The CUSIP numbers listed above are given as a convenience to the owners of the Called Bonds. However, no representation is made as to the correctness of such numbers either as printed on the Called Bonds or as contained in this Notice. Under the provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001, as amended, a paying agent making payments of principal on municipal securities may be obligated to withhold 30% from remittance to individuals who have failed to furnish the paying agent with a valid Taxpayer Identification Number. Holders of the above-described securities who wish to avoid this withholding should submit a properly completed Internal Revenue Service Form W-9 when presenting their securities for collection. Dated: ,2010 CITY OF GI LROY By: U.S. BANK NATIONAL ASSOCIATION, as Trustee [insert current address of Trustee] APPENDIX 0 NOTICE OF ADVANCE REFUNDING AND DEFEASANCE CITY OF GILROY SENIOR LIEN PROJECT REVENUE BONDS (BONFANTE GARDENS THEME PARK PROJECT), SERIES 2000 NOTICE IS HEREBY GIVEN by the City of Gilroy, California (the "City"), that on February 27, 2008, the City has deposited funds with U.S. Bank National Association, as trustee (the ''Trustee'') for the City of Gilroy Senior Lien Project Revenue Bonds (Bonfante Gardens Theme Park Project), Series 2000 (the "Bonds"), for the purpose of advance refunding and defeasing the following Bonds (the "Refunded Bonds"): Maturity Date Principal Interest CUSIP (Julv 1) Amount Rate Number 2015 $ 4,175,000 8.150% 376058AA 1 2016 355,000 8.250 376058AD5 2025 990,000 8.000 376058AB9 Amounts so deposited with the Trustee will be held by it in trust under an Escrow Agreement dated as of February 27, 2008, between the City and the Trustee, in its capacity as escrow bank (the "Escrow Bank"), and will be invested in certain noncallable direct obligations of the United States of America. Grant Thornton LLP, certified public accountants, has verified that the amounts deposited with the Escrow Agent under the Escrow Agreement are in such principal amount and are invested in such obligations as will assure sufficient money to pay when due the principal of and interest on the Refunded Bonds to and including November 1, 2010. Under the Escrow Agreement, the City has irrevocably directed the Escrow Bank to redeem all of the outstanding Refunded Bonds on November 1, 2010. This notice and the information contained in it are provided solely for informational purposes. This is not a notice of redemption of the Refunded Bonds. There is no need for the owners of the Refunded Bonds to take any action with respect to the Refunded Bonds. Notice of the redemption of the Refunded Bonds will be published in accordance with the provisions of the Refunded Bonds in advance of their redemption on November 1, 2010. Dated: February 27, 2008 CITY OF GILROY By: U.S. BANK NATIONAL ASSOCIATION, as Escrow Agent Execution Copy BOND PURCHASE AND SALE AGREEMENT AGREEMENT dated as of January 31, 2008 by and between Putnam High Yield Municipal Income Trust, Putnam Municipal Opportunities Trust, Putnam Tax Free High Yield Fund, Putnam Investment Funds Municipal Income Trust and Putnam Managed Municipal Income Trust (collectively, the "Sellers") and the City of Gilroy, California (the "Buver"). Recitals The Buyer is the issuer of $27,920,000 City of Gilroy Senior Lien Project Revenue Bonds (Bonfante Gardens Theme Park Project), Series 2000 (the "2000 Bonds"), currently outstanding in the aggregate principal amount of $12,045,000. The Sellers collectively are the beneficial owners of outstanding 2000 Bonds in the aggregate principal amount of$6,525,000. The proceeds of the Bonds were used to finance capital costs of Gilroy Gardens Family Theme Park, Inc., formerly known as Bonfante Gardens, Inc., a non-profit Delaware corporation (the "Borrower"), which owns and operates a botanical theme park in Gilroy, California. The Buyer has determined to acquire all of the real property assets and certain of the personal property assets of the Borrower (the "Borrower Sale Transaction") and, to that end, has offered to acquire the 2000 Bonds beneficially owned by the Sellers and tender them to the bond trustee for cancellation and to defease the remaining 2000 Bonds. The Sellers are willing to cause the 2000 Bonds to be sold to the Buyer, subject to the tenns and conditions set forth in this Agreement. The Sellers and the Buyer hereby agree as follows: 1. Purchase and Sale of 2000 Bonds. The Buyer hereby agrees to purchase from the Sellers, and the Sellers hereby agree to sell to the Buyer, in accordance with the tenns and conditions ofthis Agreement, 2000 Bonds in the aggregate principal amount of $6,525,000 (the "Subject 2000 Bonds"). The Subject 2000 Bonds bear interest at 8% per annum and mature on November 1, 2025 (CUSIP 376058AB9). The purchase price for the Subject 2000 Bonds shall be par plus accrued interest to, but not including, the settlement date. Settlement will be through delivery of the Subject 2000 Bonds through the book-entry system against payment of the purchase price in immediately available funds. Settlement will occur on February 26,2008, or on such later date (but not later than March 14, 2008) as the Buyer shall identify to the Sellers by written notice to the address ofthe Sellers appearing in the signature pages of this Agreement not later than five business days prior to such altemative purchase date. As the Subject 2000 Bonds are book-entry bonds registered in the name of the nominee of The Depository Trust Company, the parties will arrange for the purchase and sale through their respective custodians and, if applicable, other intennediaries. Each party will be responsible for the fees and expenses of its own custodian, other intermediaries and legal counsel and other out-of-pocket expenses incurred by it in connection herewith. As used in this Agreement, the term "party" means on the one hand the Sellers collectively and on the other hand the Buyer. 10868397 _5.DOC 2. Terms. The agreement of the parties to purchase and sell the Subject 2000 Bonds will expire on March 14, 2008 if such purchase and sale (sometimes hereinafter referred to as the "Transaction") shall not have taken place by the close of business on that date. In the event that the Transaction does not take place on or before that date because ofthe failure to meet any tenn or condition ofthis Agreement or because the parties fail to arrange a mutually satisfactory method of transfer, then neither party shall have any further obligation or liability to the other on account of the failure of the Transaction to be consummated. 3. Conditions. The obligation of each party to purchase or sell the Subject 2000 Bonds shall be subject to the additional condition that the Buyer shall have made arrangements reasonably satisfactory to the Sellers to achieve not later than three business days following the consummation of the Transaction (a) the surrender and cancellation of the Subject 2000 Bonds and (b) the defeasance of all of the outstanding 2000 Bonds other than the Subject 2000 Bonds in accordance with Article X of the Senior Lien Bond Trust Indenture dated as of December 1, 2000 between the Buyer, as issuer of the 2000 Bonds, and U.S. Bank National Association, as successor indenture trustee (the "Trustee"). In addition, the obligation of the Sellers under this Agreement to sell the Subject 2000 Bonds shall be subject to receipt of a confinnation from the Trustee satisfactory in fonn and substance to the Sellers that, upon the cancellation of the Subject 2000 Bonds and the defeasance of the remaining 2000 Bonds as contemplated by this Agreement, the indemnity obligation of the Sellers to the Trustee under the letter agreement dated May 3,2005 between the Sellers and the Trustee shall terminate in the manner and to the extent provided in Section 3 of such letter agreement. The Sellers acknowledge that the Buyer has agreed to purchase the Subject 2000 Bonds in order to accomplish the Borrower Sale Transaction and that, should the Buyer determine in the Buyer's sole discretion not to proceed with the Borrower Sale Transaction, the Buyer will not be obligated under this Agreement to purchase the Subject 2000 Bonds. In the event that either the Sellers or the Buyer shall detennine not to proceed with the purchase and sale of the Subject 2000 Bonds on account of the failure of any condition referred to in this paragraph to be met, then, as provided in Section 2, such party shall not thereby incur any obligation or liability to the other party. 4. Representations of Sellers. The Sellers represent and warrant that they are the beneficial owners of the Subject 2000 Bonds, that the Subject 2000 Bonds are not subject to any ownership or security rights of any third party that prohibit or restrict the sale of the Subject 2000 Bonds and that the Sellers have the power and authority to enter into this Agreement and to sell the Subject 2000 Bonds as provided herein. Other than as provided in the preceding sentence, the Sellers make no representations or warranties with respect to the Transaction or the Subject 2000 Bonds and the sale under this Agreement ofthe Subject 2000 Bonds shall be without recourse or warranty. 5. Representations of Buyer. The Buyer represents and warrants that it has the power and authority to enter into this Agreement, to purchase the Subject 2000 Bonds and to carry out the other actions contemplated by this Agreement, that it is purchasing the Subject 2000 Bonds as principal, with the intention of surrendering the Subject 2000 Bonds to the Trustee for cancellation in order to facilitate the Borrower Sale Transaction, -2- and that its purchase ofthe Subject 2000 Bonds is funded from legally available funds of the Buyer and not from funds received from or borrowed on the credit of the Borrower. 6. Non-Public Information. Each of the Sellers and the Buyer acknowledges that each party may possess material, non-public infonnation concerning the 2000 Bonds and/or the Borrower, its financial condition, results of operations, properties, assets, liabilities, management, projections, plans, or prospects (collectively, "Non-Public Infonnation") that is not known to the other party hereto. Each of the parties acknowledges that Non-Public Infonnation not known to it and possessed by the other party may be material to a determination of a fair value for the Subject 2000 Bonds and that value may be substantially different from the purchase price reflected in the Transaction. Each of the parties understands the disadvantage that may result from selling or purchasing the Subject 2000 Bonds without knowledge of all of the Non-Public Infonnation. Each of the parties believes, by reason of its business or financial experience or its own independent investigations that it is capable of evaluating the merits and risks of the Transaction and of protecting its own interest in connection with the Transaction. The Sellers expressly release the Buyer, and the Buyer expressly releases the Sellers, from any and all liabilities arising from the inability or failure of the Sellers or the Buyers, respectively, to review Non-Public Information held by the Buyer or the Sellers, respectively. Each ofthe Seller and the Buyer agrees to make no claim against the Buyer or the Sellers, respectively, any of their affiliates or any of their respective officers, employees, agents and controlling persons in respect of the Transaction based on failure to disclose Non-Public Information. 7. Governing Laws: Jurisdiction. This Agreement and any issue arising out of or relating to the Transaction shall be governed by, and construed in accordance with, the laws of the State of New York, without regard to principles of conflicts oflaw. Each party hereto consents specifically to the exclusive jurisdiction of the federal courts of the United States sitting in the Southern District of New York, or if such federal court declines to exercise jurisdiction over any action filed pursuant to this Agreement, the courts of the State of New York sitting in the County of New York, and any court to which an appeal may be taken in connection with any action filed pursuant to this Agreement, for the purposes of all legal proceedings arising out of or relating to this Agreement. In connection with the foregoing consent, each party irrevocably waives, to the fullest extent pennitted by law, any objection which it may now or hereafter have to the court's exercise of personal jurisdiction over each party to this Agreement or the laying of venue of any such proceeding brought in such a court has been brought in an inconvenient forum. Each party further irrevocably waives its right to a trial by jury and consents that service of process may be effected in any manner permitted under the laws of the State of New York. 8. Severability. In the event any of the terms or provisions of this Agreement shall be held to be unenforceable, the remaining tenns and provisions shall be unimpaired and the unenforceable term or provision shall be replaced by such enforceable tenn or provision as comes closest to the intention underlying the unenforceable term or prOVISIOn. -3- 9. Third Party Beneficiaries: Successors and Assigns. The Buyer understands that each affiliate of the Sellers is an intended third party beneficiary of this Agreement and is entitled to rely hereon. This Agreement shall be binding upon and inure to the benefit of the successors and assigns of each of the Sellers; provided that the right ofthe Buyer to purchase the Subject 2000 Bonds hereunder may not be assigned to any third party. 10. CounteIparts. This Agreement may be executed in counterparts, which shall together form one and the same instrument. 11. Personal Liability. Certain of the Sellers are Massachusetts business trusts or portfolios specifically allocated to a series of shares of a registered investment company (a "series company") as contemplated by Rule 18F-2(a) promulgated under the Investment Company Act of 1940, as amended. Copies of the Declarations of Trust of such parties, or copies of the Articles of Incorporation of such parties' series companies are on file with the Secretary of State of The Commonwealth of Massachusetts. This Agreement is executed on behalf of the trustees of the Sellers, and the obligations of this Agreement are not binding upon any ofthe Sellers' respective trustees, officers, or shareholders but are binding only upon the respective assets and property of the Sellers. The Buyer agrees that the liability of the Sellers under this Agreement shall be limited to the assets specifically allocated to the Sellers under their charter documents and not to any assets specifically allocated to another series of shares of their series companies or to any other assets of their series companies. 12. Nature of Obligation. The obligations of the Sellers under this Agreement are several and not joint and several. -4- IN WITNESS WHEREOF, the Sellers and the Buyer have caused this Agreement to be executed in their respective names as of the date first above written. PUTNAM HIGH YIELD MUNICIPAL TRUST By ~~ . Name: 'lh.W'- Oi'lM"'"') Title: fv(J PUTNAM MUNICIPAL OPPORTUNITIES TRUST f -y By: Name: [JAA ~ Title: ;vf PUTNAM TAX FREE HIGH YIELD FUND BY.Namef~l~ Title: 5v(J PUTNAM INVESTMENT GRADE MUNlCIP AL INCOME TRUST BY:N3ffif ;:_~ Title: ~(J -5- PUTNAM MANAGED MUNICIPAL INCOME TRUST By: ~J ~ Name: ~ ~() Title: fV'(/ c/o Putnam Investment Management, Inc. One Post Office Square Boston, Massachusetts 02109 Attn: Stephen P. O'Connell Senior Vice President Tel: (617) 760-1419 Fax: (617) 760-8728 Email: Stephen_O.Connell@putnam.com CITY OF GILROY, CALIFORNIA By: Name: Anna Jatczak Title: Interim City Administrator 7351 Rosanna Street Gilroy, California 95020-6197 Tel: (408) 846-0212 Fax: (408) 846-0500 Email: anna.iatczak@ci.gilroy.ca.us -6- EXHIBIT E PRICE ALLOCATION NOTE: The parties acknowledge that the Purchase Price for the Property has not been determined by a professional appraiser or any other empirical method other than the parties' determination of an amount equal to a sum which is sufficient to (i) cause the defeasance of all Senior Lien Bonds outstanding as of November 1,2007, excluding Senior Lien Bonds (if any) which have been purchased by the City and tendered to the Bond Trustee for retirement on or before the date set forth in Section 2.7.1, as required to enable the execution, delivery and recordation of a Deed of Reconveyance of the Senior Bond Deed of Trust; and (ii) pay all costs and expenses incurred to effectuate the defeasance of the Senior Lien Bonds, including without limitation all escrow and other fees and costs charged by the Bond Trustee, bond counsel, verification agent and f'mancial advisor, as described in Section 2.3.1 of the Agreement. Accordingly, for all purposes, the parties hereby agree to dispense with any allocation of the Purchase Price pursuant to Section 2.5. ITMOAELL\734864.15 011708-04706118 -1- EXHmIT F BILL OF SALE (See attached pages.) \TMORELL\734864.15 011708-04706118 -1- BILL OF SALE GILROY GARDENS FAMILY THEME PARK, INC., a Delaware nonprofit corporation formerly known as "Bonfante Gardens, Inc." ("Seller"), for good and valuable consideration heretofore paid by CITY OF GILROY, a charter city and municipal corporation organized under the Constitution and laws of the State of California ("Purchaser"), the receipt and sufficiency of which are hereby acknowledged, hereby sells, transfers, grants, bargains, conveys, assigns, and delivers to Buyer, its successors and assigns free and clear of all liens and encumbrances the following: All right, title and interest in and to all of the electrical generating equipment and printing equipment utilized by Seller at the real property described in Exhibit A attached hereto (together, the "Personal Property"). Seller shall warrant and defend title to the Property against any claim by any person or entity claiming by, through, or under Seller. It is understood and agreed that this transfer is made subject to the representations and warranties contained in that certain Agreement of Purchase and Sale between Seller and Buyer dated January 22, 2007, as the same may have been amended (as amended, "Agreement"), and without any other warranties and representations by Seller, express or implied. This Bill of Sale is governed by the laws of the State of California, shall be binding upon, and inure to the benefit of, the parties hereto and their respective successors, heirs, administrators and assigns, and shall be effective upon the delivery thereof by Seller to Buyer. . _ / ~/ IN WITNESS WHEREOF, Seller has executed this Bill of Sale this .,;;/y day of '"tt . , 2008. [signature on following page] ITMORELLI750128.1 011708-04706118 SELLER: GILROY GARDENS F AMIL Y THEME PARK, INC., a Delaware nonprofit corporation .., ! (7/.J /). <<~ By: .. _'/ Name: Rcib~tAraemer ::Ie ~preSident. Name: "'-.~ TItle: . - " ITMORELLI750128.1 011708-04706118 ITMORELLI750128.1 011708-04706118 EXHIBIT A TO BILL OF SALE DESCRIPTION OF PROPERTY [Attach legal description of Gilroy Gardens real property] Escrow No.: 07-98702516-JW Locate No.: CACTI7743-7743-2987-0098702516 Title No.: 07-98702516-KV EXHIBIT "A" THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF GILROY, COUNTY OF SANTA CLARA, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: PARCEL ONE: Beginning at the point of intersection of the Northeasterly line of Hecker Pass Highway, as said line was established by Parcel One in the Deed from the De Bell Corporation, a Corporation, to the State of California, dated June 12, 1957, recorded July 30, 1957 in Book 3855 Official Records, Page 512, Santa Clara County Records, with the Easterly line of that certain 24.07 acre tract of land described in the Deed from Jack De Bell et ux, to Louis A. Filice, et ux, dated September 15, 1954 recorded October 19, 1954 in Book 2986 Official Records, Page 527, Santa Clara County Records; thence from said Point of Beginning South 60 deg 42' 34" East along said Northeasterly line of Hecker Pass Highway for a distance of 599.78 feet; thence Southeasterly continuing along said last mentioned line along an arc of a curve to the left, tangent to the preceding course, with a radius of 1450.00 feet, through a central angle of 14 deg 52' 00", for an arc distance of 376.24 feet to the point of intersection thereof with the Southeasterly prolongation of a Westerly line of that certain 3.728 acre tract of land described in that certain final order of condemnation entered on November 3, 1958 in the Superior Court of the State of California, in and for the County of Santa Clara in that certain action entitled, "The People of the State of California, Acting By and Through the Department of Public Works, Plaintiff, vs. Louis A. Felice et ai, Defendants Case No. 103483," a certified copy of which order was filed for record in the Office of the Recorder of the County of Santa Clara, State of California, on November 3, 1958 in Book 4219 Official Records, Page 701, Santa Clara County Records (shown as South 33 deg 16' 39" East 246.03 feet; thence North 33 deg 16' 30" West along said prolongation and the said Westerly line of the 3.728 acre tract for a distance of 376.66 feet to the Northwesterly corner of said 3.728 acre tract, said point also being the Southwesterly corner of that certain 1.567 acre tract of land described as Parcel Two in the Deed to said State of California above referred to; thence North 24 deg 18' 19" West along the Westerly line of said 1.567 acre tract for a distance of 94.17 feet, thence North 37 deg 18' 07" East continuing along said Westerly line of the 1.567 acre tract and its Northeasterly prolongation for a distance of 254.41 feet to the Northeasterly corner of that certain tract of land described in the Deed from the State of California, to the De Bell Corporation, a California Corporation, dated August 30, 1957, recorded September 27, 1957 in Book 3900 Official Records, Page 632, Santa Clara County Records; thence North 88 deg 39' 04" West along the Northerly line of land so described in the Deed to said De Bell Corporation for a distance of 433.45 feet to the Northwesterly corner thereof; thence South 1 deg 47' West along the Westerly line of land so described in the Deed to said De Bell Corporation for a distance of 64.46 feet to the Southwesterly corner thereof in the Northerly line of that certain 160.91 acre tract of land described as Parcel Three in the Deed from Jack De Bell et ux, to the De Bell Corporation, a California Corporation, dated October 26, 1956, recorded April 29, 1957 in Book 3786 Official Records Page 463, Santa Clara County Records; thence North 88 deg 13' West along said Northerly line of the 160.91 acre tract for a distance of 291.56 feet to the Northeasterly corner of the said 24.07 acre tract above referred to; thence South 23 deg 11' West along the Easterly line of said 24.07 acre tract for a distance of 130 feet more or less to the Point of Beginning. Excepting from the above described Parcel One, the following described parcel of land: Beginning at the point of intersection of the Northeasterly line of Hecker Pass Road, as said line was established by Parcell in the Deed from De Bell Corporation, a Corporation, to the State of California, dated June 12, 1957, recorded July 30, 1957 in Book 3855 Official Records, Page 512, Santa Clara County Records, with the Northwesterly line of that certain 160.91 acre tract of land described as Parcel Three in the Deed from Jack De Bell et ux, to the De Bell Corporation, a California Corporation, dated October 26, 1956, recorded April 29, 1957 in Book 3736 Official Records, Page 463, Santa Clara County Records; thence from said Point of Beginning South 60 deg 42' 34" East along said Northeasterly line of Hecker Pass Road, for a distance of 80.00 feet, thence leaving said last mentioned line and running North 29 deg 17' 26" East 170 feet, more or less, Exhibit Page - Legal( exhibit)(08-07) to the point of intersection thereof with the Southwesterly line of the Old Hecker Pass road; thence South 66 deg 15' East along said Southwesterly line of the Old Hecker Pass Road for a distance of 270.00 feet; thence leaving said last mentioned line and running North 23 deg 00' East 99.6 feet to the True Point of Beginning of the tract of land to be described; thence from said True Point of Beginning North 67 deg 00' West 10.00 feet; thence at right angles North 23 deg 00' East 20.00 feet; thence at right angles South 67 deg 00' East 20.00 feet; thence at right angles South 23 deg 00' West 20.00 feet; thence at right angles North 67 deg 00' West 10.00 feet to the True Point of Beginning. APN 783-05-011 AND 013 PARCEL TWO: Beginning at the point of intersection of the Northeasterly line of Hecker Pass Road, as said line was established by Parcell in the Deed from the De Bell Corporation, a Corporation, to the State of California, dated June 21, 1957, recorded July 30, 1957 in Book 3855 Official Records, Page 512, Santa Clara County Records, with the Northwesterly line of that certain 160.91 acre tract of land described as Parcel Three in the Deed from Jack De Bell, et UX, to the De Bell Corporation, a California Corporation, dated October 26, 1956, recorded April 29, 1957 in Book 3736 Official Records, Page 463, Santa Clara County Records; thence from said Point of Beginning South 60 deg 42' 34" East along said Southeasterly line of Hecker Pass Road for a distance of 80.00 feet, thence leaving said last mentioned line and running North 29 deg 17' 26" East 170 feet, more or less, to the point of intersection thereof with the Southwesterly line of the Old Hecker Pass Road; thence South 66 deg 15' East along said Southwesterly line of the Old Hecker Pass Road for a distance of 270.00 feet; thence leaving said last mentioned line and running North 23 deg 00' East 99.6 feet to the True Point of Beginning of the tract of land to be described; thence from said True Point of Beginning North 67 deg 00' West 10.00 feet; thence at right angles North 23 deg 00' East 20.00 feet; thence at right angles South 67 deg 00' East 20.00 feet; thence at right angles South 23 deg 00' West 20.00 feet; thence at right angles North 67 deg 00' West 10.00 feet to the True Point of Beginning. APN 783-05-012 PARCEL THREE: A Portion of Parcels One and Four as shown on that Parcel Map recorded in Book 494 of Maps at Page 43, Santa Clara County, and a Portion of Lands of Blocher, I 361 O.R. 202, Santa Clara County Records, described as follows: Beginning at a Point on the West Line of said Parcel four, said Point also being at the Northeastern most corner of Parcel Three as shown on said Parcel Map said Point also lying on the West line of Lands of Nob Hill General Store, Inc., a California Corporation, as described in that Deed recorded in K805 of Official Records at page 1589, Santa Clara County, and proceeding along the Westerly, Southerly, Easterly and Northerly lines of said Parcel four and said lands of Nob Hill the following courses: 1. SO deg. 03' 40" W 778.37 feet 2. East 70.00 feet 3. S 17 deg. 45' 49" E 294.02 feet 4. West 160.00 feet 5. SO deg. 03' 40" W 418.87 feet 6. S 0 deg. 13' 40" W 4094.58 feet 7. East 1254.00 feet 8. N 0 deg. 14' E 4527.60 feet 9. N 0 deg. 02' W 1672.30 feet 10. N 67 deg. 23' W 262.00 feet 11. N 49 deg. 20' 30" W 98.97 feet 12. N 31 deg. 26' W 154.34 feet 13. S 37 deg. 18' 09 W 85.48 feet 14. N 42 deg. 54' 55" W 294.28 feet 15. N 38 deg. 11' 51" W 55.00 feet 16. N 72 deg. 45' 58" W 83.84 feet 17. S 66 deg. 33' 05" W 57.31 feet 18. N 69 deg. 23' 35" W 301.68 feet Exhibit Page - Legal( exhibit)(08-07) to the Easternmost corner of those lands conveyed to the State of California by J627 of Official Records at page 1271, Santa Clara County; thence along the Southerly line of last said lands S 83 deg. 53' 57" W 44.13 feet; thence Northwesterly along a 1585 Foot radius curve to the right, from a tangent bearing N 82 deg. 52' 34" W., said curve having an interior angle of 18 deg. 50' 48", and a length of 521.36 feet to a point lying 91.84 feet Southerly along the said 1585 Foot radius curve from an angle point in last said Southerly line; thence S 0 deg. 09' W 419.62 feet; thence S 17 deg. 14' 00" E 810.00 feet; thence S 20 deg. 16' 11" W 194.80 feet to a point on the Northeasterly line of said Parcel Three, last said point being N 69 deg. 43' 49" W 288.41 feet from the Northeasterly corner of said Parcel Three; thence S 69 deg. 43' 49" E. 288.41 feet to the Point of Beginning. Excepting therefrom the following described parcel of land: Beginning at the Northeastern most corner of said Parcel Four and proceeding S 00 deg. 09' 33" E along the East line of said Parcel Four, 269.81 feet to the Westerly terminus of the Northeast line of a Pedestrian/Equestrian Easement as shown on Parcel One on that Parcel Map recorded in Book 663 of Maps at Pages 13 and 14, Santa Clara County Records; thence N 30 deg. 15' W 412.10 feet more or less to a point on the Northeasterly line of said Parcel Four; thence S 67 deg. 23' E 224.09 feet along last said line to the Point of Beginning. Also excepting therefrom "Parcel C" as described in that certain Certificate of Compliance recorded April 14, 1998 as Instrument No. 14139227, Official Records of Santa Clara County, and being more particularly described as follows: A portion of real property located in the County of Santa Clara, State of California, described as follows: All of Parcel Four as shown on that Parcel Map recorded in Book 494 of Maps at Page 43, Santa Clara County Records, Except therefrom the following: Beginning at the Northeasternmost corner of said Parcel Four and proceeding S 00009'33" E along the East line of said Parcel Four, 269.81 feet to the Westerly terminus of the Northeast line of a Pedestrian/Equestrian Easement as shown on Parcel One on that Parcel Map recorded in Book 663 of Maps at Pages 13 and 14, Santa Clara County Records; thence N 30015' W 412.10 feet more or less to a point on the Northeasterly line of said Parcel Four; thence S 67023' E. 224.09 feet along last said line to the point of beginning. APN 810-17-026, 810-17-029 PARCEL FOUR: A portion of Parcels Two and Three as shown on that Parcel Map recorded in Book 494 of Maps, at page 43, Santa Clara County Records, lying in Santa Clara County, California, described as follows: Beginning at a point on the South line of said Parcel Two, said point lying S 89 deg. 35' 00" W 145.44 feet from the Southeasterly angle point in said Parcel Two, last said angle point being produced by the courses S 17 deg. 40' 40" W 105.66 feet and S 89 deg. 35' 00" W 428.05 feet as shown on said Map; thence along the following courses: COURSE NO. 1. N 19 deg. 21' 40" E 417.99 feet 2. N 76 deg. 19' 19" W 13.90 feet 3. N 17 deg. 40' 40" E 1089.46 feet 4. N 64 deg. 27' 00" E 208.60 feet to a point on the Northeasterly line of said Parcel Two, said point lying N 69 deg. 43' 49" W 9.45 feet from the Northeastern corner of said Parcel Two; thence along the Northestern Line of said Parcels Two and Three and along the Easterly and Southerly line s of said Parcel Three the following courses: Exhibit Page - Legal(exhibit)(08-07) COURSE NO. 5. S 69 deg. 43' 49" E 689.53 feet 6. S. 0 deg. 03' 40" W 778.37 feet 7. East 70.00 feet 8. S 17 deg. 45' 49" W 294.02 feet 9. West 160.00 feet 10. SO deg. 03' 40" W 350.00 feet 11. N. 78 deg. 40' 00" W 1134.00 feet 12. S 17 deg. 40' 40" W 105.66 feet, and 13. S 89 deg. 35' 00" W 145.44 feet to the point of beginning. APN 810-17-014, 015, 021, 024 AND 025 PARCEL FIVE: A non-exclusive easement for Ingress and Egress and for the installation and maintenance of public utilities, appurtenant to the above described parcels, over a strip of land 60.00 feet in width, lying 10.00 feet Westerly of and 50.00 feet Easterly of the following described line: Beginning at a point in the Southwesterly line of the State Highway IV-SCI-32D-1957, distant thereon South 60 deg 14' 20" East 232.40 feet from a concrete monument at Station 325 57.01 E. C. of said Highway and running thence South 57 deg 45' 40" West 161.79 feet; South 41 deg 31' 40" West 262.30 feet; South 31 deg 44' 40" West 311.70 feet; South 3 deg 19' 10" West 344.34 feet; South 23 deg 29' 50" East 166.48 feet; thence Southwesterly 150 feet, more or less, to a point which bears South 71 deg 14' 02" East 94.02 feet and North 19 deg 29' 13" East 110.0 feet from the most Easterly corner of Parcell, as said Parcel is shown upon that certain Map entitled, "Record of Survey being a portion of the solis Rancho", which Map was filed for record in the Office of the Recorder of the County of Santa Clara, State of California on December 7, 1967 in Book 231 of Maps, at Page 22; thence South 19 deg 29' 13" West 110.00 feet and the terminus of said easement, said easement is appurtenant to and for the Benefit of Parcels Three, Four, Seven and Twelve. PARCEL SIX: A non-exclusive easement for Ingress and Egress and for the installation and maintenance of public utilities and for water pipe lines, appurtenant to the above described parcels, over an existing roadway 60.00 feet in width, the center line of which is described as follows: Beginning at the point of intersection of the Easterly line of that certain 160.91 acre tract of land described as Parcel Three in the Deed from Jack De Bell, et ux, to the De Bell Corporation, dated October 26, 1956, recorded April 29, 1957 in Book 3786 Official Records, page 463, Santa Clara County Records, with the Southwesterly line of Hecker Pass Road, as said line was established by Parcel One in the Deed from the De Bell Corporation, to the State of California dated June 12, 1957, recorded July 30, 1957 in Book 3655 Official Records, page 512, Santa Clara County Records; thence from said point of beginning South o deg 05' 19" West along said Easterly line of the 160.91 acre tract for a distance of 1370.09 feet to the True Point of Beginning of the easement to be described; thence from said True Point of Beginning North 69 deg. 43' 49" West 1460.17 feet to the terminus of said easement, said easement is appurtenant to and for the Benefit of Parcels Three, Four and Twelve. Excepting therefrom all that portion thereof lying within the above described Parcels Three and Four. Exhibit Page - Legal(exhibit)(08-07) PARCEL SEVEN: All of Parcel Two, as shown upon that certain Map entitled, "Parcel Map, being a portion of the Las Animas Rancho", which Map was filed for record in the Office of the Recorder of the County of Santa Clara, State of California on October 12, 1993 in Book 650 of Maps, at Page 49. APN 810-18-010 and 011 PARCEL EIGHT: An easement 40 feet in width for ingress and egress and public utilities the centerline of said easement described as follows: Commencing at a point in the centerline of that 60 foot wide easement recorded in Book 7981 of Official Records at Page 56, Santa Clara County Records, said point being the northeast terminius of that course shown as No. 16 on that Parcel Map recorded in Book 494 of Maps, at Page 43, Santa Clara County Records and proceeding S 20016'11" W 30.00 feet to a point on the southwesterly line of said easement to the Point of Beginning; thence from said Point of Beginning S 27003' W 28.19 feet to station "A"; thence along a curve to the right with a radius of 40 feet at an angle of 60.00 feet for a distance of 41.89 feet to station "B"; thence S 87003' W 28.00 feet to station C; thence along a curve to the left with a radius of 85.47 feet at an angle of 70033'08" for a distance of 105.24 feet to station "D"; thence S 16029'52"W for a distance of 224.83 feet to station "E"; thence on a curve to the left with a radius of 457.22 feet at an angle of 18037'52" for a distance of 148.68 feet to station "F"; thence 5 2008' E for a distance of 32.29 feet to station "G"; thence on a curve to the right with a radius of 196.58 feet at an angle of 41046' for a distance of 143.30 feet to station "H"; thence S 39038' W for a distance of 151. 72 feet to station "I"; thence on a curve to the left with a radius of 250.00 feet at an angle of 45.000 for a distance of 196.34 feet to station "J"; thence 5 5022' E 110.00 feet to station "K"; thence on a curve to the right with a radius of 414.00 feet at an angle of 21010' for a distance of 152.94 feet to station "L"; thence S 15048' W 93.00 feet to station "M"; thence on a curve to the left with a radius of 243.00 feet at an angle of 30031' for a distance of 129.42 feet to station "N"; thence S 14043' E 456.60 feet more or less to a point on the south line of parcel two of said parcel map, last said point being 152.52 feet westerly from the southerly terminus of that course, (50025'00" E 89.33 feet), as shown on said parcel map, to station "0", said easement is appurtenant to and for the Benefit of Parcel Seven. PARCEL NINE: An easement for ingress and egress described as follows: Beginning at the point of beginning of the above described 40 foot wide easement and running 5 69043'49" E 20.00 feet to the easterly line of said 40.00 foot wide easement being the true point of beginning; thence 5 69043'49" E along the southwesterly line of the 60.00 foot easement (7981-or-56) 30 feet; thence 80 feet more or less southwesterly to the mid point (on the southeast line of above described 40 foot easement) of the 40.00 foot radius (centerline) curve; thence northeasterly along the southeasterly line of said 40.00' foot wide easement above described 60 feet more or less to true point of beginning, said easement is appurtenant to and for the Benefit of Parcel Seven. PARCEL TEN: A 10 foot wide easement for ingress and egress. The easterly line of said easement described as follows: Commencing at above station "L" and running 5 15048'W 40.00 feet and N 74012' W 20.00 feet to the True Point of Beginning; thence S 15048' W 53.00 feet; thence southerly along a 263.00 foot radius curve to the left, having an interior angle of 17025'42" a distance of 80.00 feet to the terminus of said easement, said easement is appurtenant to and for the Exhibit Page - Legal(exhibit)(08-07) Jenefit of Parcel Seven. PARCEL ELEVEN: An easement for ingress-egress said easement described as follows: Commencing at said station "0", and proceeding S 89035' W along the Southerly line of Parcel Two as shown on Parcel Map recorded in Book 494 of Maps at Page 43, Santa Clara County Records 20.64 feet to the True Point of Beginning; thence continuing S 89035' W 25.00 feet; thence N 37026'15" E 30.68 feet to a point on the Southwesterly line of the 40 foot wide easement above described; thence S 14043' E 25.00 feet to the Point of Beginning, said easement is appurtenant to and for the Benefit of Parcel Seven. PARCEL TWELVE: A Portion of Parcels One and Four as shown on that Parcel Map recorded in Book 494 of Maps at Page 43, Santa Clara County, and a Portion of Lands of Blocher, 1361 O.R. 202, Santa Clara County Records, described as follows: Beginning at a Point on the West Line of said Parcel four, said Point also being at the Northeastern most corner of Parcel Three as shown on said Parcel Map said Point also lying on the West line of Lands of Nab Hill General Store, Inc., a California Corporation, as described in that Deed recorded in K805 of Official Records at page 1589, Santa Clara County, and proceeding along the Westerly, Southerly, Easterly and Northerly lines of said Parcel four and said lands of Nab Hill the following courses: COURSE NO. 1. S 0 deg. 03' 40" W 778.37 feet 2. East 70.00 feet 3. S 17 deg. 45' 49" E 294.02 feet 4. West 160.00 feet 5. SO deg. 03' 40" W 418.87 feet 6. S 0 deg. 13' 40" W 4094.58 feet 7. East 1254.00 feet 8. NO deg. 14' E 4527.60 feet 9. N 0 deg. 02' W 1672.30 feet 10. N 67 deg. 23' W 262.00 feet 11. N 49 deg. 20' 30" W 98.97 feet 12. N 31 deg. 26' W 154.34 feet 13. S 37 deg. 18' 09 W 85.48 feet 14. N 42 deg. 54' 55" W 294.28 feet 15. N 38 deg. 11' 51" W 55.00 feet 16. N 72 deg. 45' 58" W 83.84 feet 17. S 66 deg. 33' 05" W 57.31 feet 18. N 69 deg. 23' 35" W 301.68 feet to the Easternmost corner of those lands conveyed to the State of California by J627 of Official Records at page 1271, Santa Clara County; thence along the Southerly line of last said lands S 83 deg. 53' 57" W 44.13 feet; thence Northwesterly along a 1585 Foot radius curve to the right, from a tangent bearing N 82 deg. 52' 34" W., said curve having an interior angle of 18 deg. 50' 48", and a length of 521.36 feet to a point lying 91.84 feet Southerly along the said 1585 Foot radius curve from an angle point in last said Southerly line; thence S 0 deg. 09' W 419.62 feet; thence S 17 deg. 14' 00" E 810.00 feet; thence S 20 deg. 16' 11" W 194.80 feet to a point on the Northeasterly line of said Parcel Three, last said point being N 69 deg. 43' 49" W 288.41 feet from the Northeasterly corner of said Parcel Three; thence S 69 deg. 43' 49" E. 288.41 feet to the Point of Beginning. Exhibit Page - Legal(exhibit)(08-07) Excepting therefrom the the following described parcel of land: Beginning at the Northeastern most corner of said Parcel Four and proceeding S 00 deg. 09' 33" E along the East line of said Parcel Four, 269.81 feet to the Westerly terminus of the Northeast line of a Pedestrian/Equestrian Easement as shown on Parcel One on that Parcel Map recorded in Book 663 of Maps at Pages 13 and 14, Santa Clara County Records; thence N 30 deg. 15' W 412.10 feet more or less to a point on the Northeasterly line of said Parcel Four; thence S 67 deg. 23' E 224.09 feet along last said line to the Point of Beginning. Excepting therefrom all that portion lying Westerly of the Westerly line of said Parcel 4 And, in addition thereto, the following parcel of land designated as "Transfer Parcel" on the accompanying plat entitled "Exhibit B", being more particularly described as follows: A portion of Parcel B, as said Parcel is described in that certain Certificate of Compliance for Lot Line Adjustment filed for record as Document Number 14139227, Official Records of Santa Clara County, California, being more particularly described as follows: BEGINNING at southwesterly corner of said Parcel B, said point also being the southerly terminus of the course designated as S 00 02" E 1672.30 feet on that certain Lot Line Adjustment Parcel Map filed for record in Book 494 of Maps, at Page 43, Records of Santa Clara County, California, and the northwest corner of Lot 61, as said Lot 61 is shown on the map of Tract 9365, Eagle Ridge, filed for record in Book 748 of Maps, at Page 20, Records of Santa Clara County, California; thence running along the common line of said Parcel B and Parcel C 1.) N 000 09' 33" W, a distance of 1,402.67 feet to the northwesterly corner of said Parcel B; thence leaving said common line and running along the northerly line of said Parcel B 2.) S 310 08' 00" E, a distance of 282.40 feet to the beginning of a curve to the left having a radius of 193.00 feet; thence continuing along said northerly line 3.) Southeasterly along said curve, through a central angle of 490 07' 00", a distance of 165.45 feet to the beginning of a compound curve to the left having a radius of 632.00 feet; thence continuing along said northerly line 4.) Easterly along said curve, through a central angle of 230 25' 00", a distance of 258.30 feet; thence continuing along said northerly line 5.) N 76020' 00" E, a distance of 499.27 feet to the beginning of a curve to the right having a radius of 1,360.00 feet; thence continuing along said northerly line 6.) Easterly along said curve, through a central angle of 130 40' 00"; a distance of 324.40 feet; thence continuing along said northerly line 7.) East, a distance of 88.59 feet to the beginning of a curve to the left having a radius of 65.00 feet; thence continuing along said northerly line 8.) Easterly along said curve, through a central angle of 040 37' 09"; a distance of 5.24 feet; thence continuing along said northerly line 9.) S 000 36' 00" E, a distance of 0.34 feet; thence continuing along said northerly line Exhibit Page - Legal( exhibit)(08-07) 10.) S 890 59' 56" E, a distance of 240.84 feet to the northeasterly corner of said Parcel B; thence leaving said northerly line and running along the easterly line of said Parcel B 11.) S 00008' 00" E, a distance of 304.39 feet; thence leaving said easterly line 12.) S 87059' 43" W, a distance of 330.76 feet; thence 13.) N 890 02' 02" W, a distance of 222.92 feet; thence 14.) S 840 51' 07" W, a distance of 357.84 feet; thence 15.) S 760 21' 10" W, a distance of 402.59 feet; thence 16.) N 880 13' 32" W, a distance of 194.26 feet; thence 17.) N 630 29' 09" W, a distance of 72.82 feet; thence 18.) S 21041' 39" W, a distance of 190.51 feet; thence 19.) S 000 46' 42" E, a distance of 146.48 feet; thence 20.) S 090 19' 49" E, a distance of 120.58 feet; thence 21.) S 020 29' 27" W, a distance of 36.13 feet; thence 22.) S 040 18' 56" W, a distance of 178.81 feet; thence 23.) S 000 07' 43" W, a distance of 178.08 feet to the southerly line of said Parcel B, also being the northerly line of said Lot 61 of Tract 9365; thence running along said southerly line of Parcel B and northerly line of Lot 61 24.) N 89" 52' 17" W, a distance of 48.11 feet to the POINT OF BEGINNING. Being Parcel C as described in the Certificate of Compliance Recorded May 2, 2005 as Instrument No. 18348300. APN 810-18-002; 810-19-005, 007, 010, 011, and 014 PARCEL THIRTEEN: An Easement for the purposes of Ingress and Egress and Utilities, as conveyed to Bonfante Gardens, Inc., a Delaware Non- Profit corporation by Grant Deed recorded April 28, 1999 as Instrument No. 14780039, and being more particularly described as follows: Beginning at a point on the East line of Parcel Four as shown upon that Parcel Map recorded in Book 494 of Maps at Page 43, Exhibit Page - Legal(exhibit)(OB-07) Santa Clara County Records, said point being the Southwest corner of Parcel One as shown upon that Parcel Map recorded in Book 663 of Maps at Pages 13 and 14, Santa Clara County Records; thence Southerly alond said East line of Parcel Four, 360.00 feet; thence S. 89 deg. 52' 17" E. 60.00 feet; thence Northerly 360.00 feet to a point on the South line of said Parcel One, last said point lying S. 89 deg. 52' 17" E. 60.00 feet from the point of beginning; thence N. 89 deg. 52' 17" W. 60.00 feet to the point of beginning. Exhibit Page - Legal( exhibit)(08-07) EXHIBIT G GRANT DEED (See attached pages.) \TMORELL \734B64.15 01170B-0470611 B -1- RECORDING REQUESTED BY: Chicago Title Company t ,. WHEN RECORDED MAIL DOCUMENT AND TAX SfAnMENT TO: City Administrator C/O City of Gilroy 7351 Rosanna Street Gilroy, CA 95020 Escrow No.: 07-98702516-JW Locate No.: CACTI7743-7743-2987-0098702S16 Title No.: 07.9a702516-KV DOCUMENT: 19761542 Illllj ~IIIIII 1/.11 ~ 11111111111 Fees. Taxes Copies AMT PAlO Pages' 14 . No Fees REGINA ALCOMENORAS SANTA CLARA COUNTY RECORDER Recorded at the request of Chicago Title ROE It e II 2/29/2008 I; 30 PM SPACE ABOVE THIS UNE FOR RECORDER'S USE Gra nt Deed MAIL TAX STATEMENTS AS DIRECTED ABOVE THIS PAGE ADDED TO PROVIDE ADEQUATE SPACE FOR RECORDING INFORMATION (Additional recording fee applies) (recoversc)(02-Q6) INSURED G - CHICAGO T' OTC E~ RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Gilroy 7351 Rosanna St. Gilroy, CA 95020 Attention: City Administrator RECORD WITHOUT FEE UNDER SECTION 27383 GOVERNMENT CODE OF STATE OF CALIFORNIA SPACE ABOVE TInS LINE fOR RECORDER'S USE Mail Tax Statements to: City of Gilroy 7351 Rosanna Street Gilroy, CA 95020 Attn. City Clerk APNs: 783-05-011, -013 and -012, 810-17-026 and -029, 810-17-014, -015, -021, -024 and -025, 810-18-0 to , -011 and -002, 810-19-005, -007, -0 to, -011 and -014 GRANT DEED GILROY GARDENS FAMILY THEME PARK, INC., a Delaware nonprofit corporation formerly known as "Bonfante Gardens, Inc." ("Grantor"), does hereby GRANT, in fee simple absolute to the CITY OF GILROY, a municipal corporation of the State of California, all that real property situate in the County of Santa Clara, State of California, described as follows: Dated; o? - alf' - ;JtJ:J r SEE EXHIBIT "A" "'- M~- -- Printed Name: Robert Kraemer r . . . . .' J~NET'K. W~~~~~E~l @-"'COMM"1092532m ~ . HO\atY pUl)lIo.c:alllom1a ~ ~.. ""'tA CLARA GOUIlT\' 1... ~ .'~ . . . ~. e.~~..I~p~ ~u~ ~3~ ~~ J Its: PTP-sident Mail Tax Statements as Shown Above \TMORELLI750200 2 0226lJ8.C4706118 State of California County of Santa Clara ) ) On February 28, 2008 Janet K. Wallace personally appeared Robert Kraemer, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) Is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in~/her/their authorized capadly(les), and that bYJlW/her/their signature(s} on the Instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. before me, . Notary Public (here Insert name and title of the officer), I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph Is true and correct. (Seal) ) "@" JAM';',".. :':."J...c: 'I ~ .....-. COMM. tlI1092532 m en,,; . Nowy Publlc.c.tIIomla !e UJ IAlfTAC~~OUHTY -" t ~ . . T . . ~~ :~~ ~~~ :u~ :3: :~. f (notary)(12-07) ) CERTIFICATE OF ACCEPTANCE (Government Code Section 27281) Certificate of Acceptance of Conveyance to the City of Gilroy by Gilrory Gardens Family Theme Park, Inc. THIS IS TO CERTIFY that the interest in real property conveyed by the Grant Deed dated ~ -dl K" , 2008, from GILROY GARDENS FAMILY THEME PARK, INC., a Delaware nonprofit corporation formerly known as "Bonfante Gardens, Inc." to the City of Gilroy, a municipal corporation of the State of California is hereby accepted by the undersigned officer on behalf of the City of Gilroy pursuant to authority conferred by Resolution No. 2004-20 of the city of Gilroy adopted March 15, 2004, a certified copy of which resolution is on record in the office of the County Recorder of the County of Santa Clara, State of California, document # 17703402, dated April 6, 2004, and the grantee consents to recordation thereof by its duly authorized officer. In witness whereof, I have hereunto set my hand on c:J - 02r ,2008. Anna Jatczak, Int of the City ofGilr By: ITMORELL\750200.2 O~706118 State of california County of Santa Clara ) ) On Februarv 28. 2008 Janet K. Wallace personally appeared Anna Jatczak who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s)ware subscribed to the within instrument and acknowledged to me that he/she/they executed the same In his/her/their authorized capacity(ies), and that - by his/Jler/thelr slgnature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the Instrument. before me, . Notary Public (here Insert name and title of the officer), I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my Signature (notary)( 12-07) EXHIBIT A Le2al Desription of Real Property [to be attached] \TMORELL\7S0200 2 022608-04706118 Escrow No.: 07-98702516-JW Locate No.: CACT17743'7743-2987-0098702516 Title No.: 07-9S702516-KV I " EXHIBIT "A" THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE em OF GILROY, COUNTY OF SANTA CLARA, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOllOWS: PARCEL ONE: Beginning at the point of intersection of the Northeasterly line of Hecker Pass Highway, as said line was established by Parcel One in the Deed from the De Bell Corporation, a Corporation, to the State of California, dated June 12, 1957, recorded July 30, 1957 in Book 3855 Official Records, Page 512, Santa Clara County Records, with the Easterly line of that certain 24.07 acre tract of land described in the Deed from Jack De Bell et ux, to Louis A. Filice, et ux, dated September 15, 1954 recorded October 19, 1954 in Book 2986 OffICial Records, Page 527, Santa Oara County Records; thence from said Point of Beginning South 60 deg 42' 34" East along said Northeasterly line of Hecker Pass Highway for a distance of 599.78 feet; thence Southeasterly continuing along said last mentioned line along an arc of a curve to the left, tangent to the preceding course, with a radius of 1450.00 feet, through a central angle of 14 deg 52' 00", for an arc distance of 376.24 feet to the point of intersection thereof with the Southeasterly prolongation of a Westerly line of that certain 3.728 acre tract of land described in that certain final order of condemnation entered on November 3, 1958 in the Superior Court of the State of California, In and for the County of Santa Clara In that certain action entitled, "The People of the State of California, Acting By and Through the Department of Public Works, Plaintiff, vs. louis A. Felice et ai, Defendants Case No. 103483," a certified copy of which order was filed for record in the Office of the Recorder of the County of Santa Clara, State of Ca lifom la, on November 3,1958 in Book 4219 Official Records, Page 701, Santa Clara County Records (shown as South 33 deg 16' 39" East 246.03 feet; thence North 33 deg 16' 30" West along said prolongation and the said Westerly line of the 3.728 acre tract for a distance of 376.66 feet to the Northwesterly comer of said 3.728 acre tract. said point also being the Southwesterly corner of that certain 1.567 acre tract of land described as Parcel Two in the Deed to said State of California above referred to; thence North 24 deg 18' 19" West along the Westerly line of said 1.567 acre tract for a distance of 94.17 feet, thence North 37 deg 18' 07' East contlnuing along said Westerly line of the 1.567 acre tract and its Northeasterly prolongation for a distance of 254.41 feet to the Northeasterly comer of that certain tract of land described in the Deed from the State of California, to the De Bell Corporation, a California Corporation, dated August 30, 1957, recorded September 27, 1957 in Book 3900 Official Records, Page 632, Santa Clara County Records; thence North 88 deg 39' 04" West along the Northerly line of land so described in the Deed to said De Bell Corporation for a distance of 433.45 feet to the Northwesterly comer thereof; thence South 1 deg 47' West along the Westerly line of land so described In the Deed to said De Bell Corporation for a distance of 64.46 feet to the Southwesterly comer thereof in the Northerly line of that certain 160.91 acre tract of land described as Parcel Three in the Deed from Jack De Bell et ux, to the De Bell Corporation, a California Corporation, dated October 26, 1956, recorded April 29, 1957 in Book 3786 OffICial Records Page 463, Santa Clara County Records; thence North 88 deg 13' West along said Northerly line of the 160.91 aae tract for a distance of 291.56 feet to the Northeasterly comer of the said 24.07 acre tract above referred to; thence South 23 deg 11' West along the Easterly line of said 24.07 acre tract for a distance of 130 feet more or less to the Point of Beginning. - Excepting from the above described Parcel One, the following desoibed parcel of land: Beginning at the point of intersection of the Northeasterly line of Hecker Pass Road, as said line was established by Parcell in the Deed from De Bell Corporation, a Corporation, to the State of California, dated June 12, 1957, recorded July 30, 1957 in Book 3855 OffICial Records, Page 512, Santa Clara County Records, with the Northwesterly line of that certain 160.91 acre tract of land described as Parcel Three In the Deed from Jack De Bell et ux, to the De Bell Corporation, a California Corporation, dated October 26, 1956, recorded April 29, 1957 In Book 3736 OffICial Records, Page 463, Santa Clara County Records; thence from said Point of Beginning South 60 deg 42' 34" East along said Northeasterly line of Hecker Pass Road, for a distance of 80.00 feet, thence leaving said last mentioned line and running North 29 deg 17' 26" East 170 feet, more or less, to the point of intersection thereof with the Southwesterly line of the Old Hecker Pass road; thence South 66 deg 15' East along said Southwesterly line of the Old Hecker Pass Road for a distance of 270.00 feet; thence leaving said last mentioned line and Exhibit Page. l.egal(exhlblt)(08-07) running North 23 deg 00' East 99.6 feet to the True Point of Beginning of the tract of land to be described: thence from said True Point of Beginning North 67 deg 00' West 10.00 feet; thence at right angles North 23 deg 00' East 20.00 feet; thence at right angles South 67 dE!g 00' Eclst 20.00 feet; thence at right angles South 23 deg 00' West 20.00 feet; thence at right angles North 67 deg 00' West 10.00 feet to the True Point of Beginning. APN 783-05-011 AND 013 PARCEL TWO: Beginning at the point of intersection of the Northeasterly line of Hecker Pass Road, as said line was established by Parcell in the Deed from the De Bell Corporation, a Corporation, to the State of Califomia, dated June 21, 1957, recorded July 30,1957 in Book 3855 Official Records, Page 512, Santa Clara County Records, with the Northwesterfy line of that certain 160.91 acre tract of land described as Parcel Three in the Deed from Jack De Bell, et ux, to the De Bell Corporation, a Califomia Corporation, dated October 26, 1956, recorded April 29, 1957 in Book 3736 OffICial Records, Page 463, Santa Clara County Records; thence from said Point of Beginning South 60 deg 42' 34" East along said Southeasterly line of Hecker Pass Road for a distance of 80.00 feet, thence leaving said last mentioned line and running North 29 deg 17' 26" East 170 feet, more or less, to the point of intersection thereof with the Southwesterfy line of the Old Hecker Pass Road; thence South 66 deg 15' East along said Southwesterly line of the Old Hecker Pass Road for a distance of 270.00 feet; thence leaving said last mentioned line and running North 23 deg DO' East 99.6 feet to the True Point of Beginning of the tract of land to be described; thence from said True Point of Beginning North 67 deg 00' West 10.00 feet; thence at right angles North 23 deg 00' East 20.00 feet; thence at right angles South 67 deg DO' East 20.00 feet; thence at right angles South 23 deg 00' West 20.00 feet; thence at right angles North 67 deg 00' West 10.00 feet to the True Point of Beginning. APN 783-05-012 PARCEL THREE: A Portion of Parcels One and Four as shown on that Parcel Map recorded in Book 494 of Maps at Page 43, Santa Clara County, and a Portion of Lands of Blocher, I 361 O.R. 202, Santa Clara County Records, described as follows: Beginning at a Point on the West line of said Parcel four, said Point also being at the Northeastern most comer of Parcel Three as shown on said Parcel Map said Point also lying on the West line of Lands of Nob Hill General Store, Inc., a Califomia Corporation, as described in that Deed recorded in K80S of Official Records at page 1589, Santa Clara County, and proceeding along the Westerly, Southerly, Easterly and Northerly lines of said Parcel four and said lands of Nab Hill the following courses: 1. S 0 deg. 03' 40" W 778.37 feet 2. East 70.00 feet 3. S 17 deg. 45' 49" E 294.02 feet 4. West 160.00 feet 5. 5 0 deg. 03' 40" W 418.87 feet 6. 5 0 deg. 13' 40" W 4094.58 feet 7. East 1254.00 feet 8. NO deg. 14' E 4527.60 feet 9. N 0 deg. 02' W 1672.30 feet 10. N 67 deg. 23' W 262.00 feet 11. N 49 deg. 20' 30" W 98.97 feet 12. N 31 deg. 26' W 154.34 feet 13. 5 37 deg. 18' 09 W 85.48 feet 14. N 42 deg. 54' 55" W 294.28 feet 15. N 38 deg. 11' 51" W 55.00 feet 16. N 72 deg. 45' 58" W 83.84 feet 17. S 66 deg. 33' 05" W 57.31 feet 18. N 69 deg. 23' 35" W 301.68 feet to the Easternmost comer of those lands conveyed to the State of California by J627 of OffICial Records at page 1271, Santa Oara County; thence along the Southerly line of last said lands 5 83 deg. 53' 57" W 44.13 feet; thence Northwesterly along a Exhibit Page - Legal(exhlbit)(08-07) 1585 Foot radius curve to the right, from a tangent bearing N 82 deg. 52' 34" W., said curve having an interior angle of 18 deg. SO' 48", and a length of 521.36 feet to a point lying 91.84 feet Southerly along the said 1585 Foot radius curve from an angle point in last said Southerly line~'thence 5 0 deg. 09' W 419.62 feet; thence 5 17 deg. 14' 00" E 810.00 feet; thence S 20 deg. 16' 11" W 194.80 feet to a point on the Northeasterly line of said Parcel Three, last said point being N 69 deg. 43' 49" W 288.41 feet from the Northeasterly corner of said Parcel Three; thence S 69 deg. 43' 49" E. 288.41 feet to the Point of Beginning. Excepting therefrom the following described parcel of land: Beginning at the Northeastern most corner of said Parcel Four and proceeding S 00 deg. 09' 33" E along the East line of said Parcel Four, 269.81 feet to the Westerly tenninus of the Northeast line of a Pedestrian/Equestrian Easement as shown on Parcel One on that Parcel Map recorded In Book 663 of Maps at Pages 13 and 14, Santa Clara County Records; thence N 30 deg. 15' W 412.10 feet more or less to a point on the Northeasterly line of said Parcel Four; thence 5 67 deg. 23' E 224.09 feet along last said line to the Point of Beginning. Also excepting therefrom "Parcel C' as described in that certain Certificate of Compliance recorded April 14, 1998 as Insbument No. 14139227, Official Records of Santa Clara County, and being more particularly described as follows: A portion of real property located in the County of Santa Clara, State of California, described as follows: All of Parcel Four as shown on that Parcel Map recorded in Book 494 of Maps at Page 43, Santa Clara County Records, Except therefrom the following: Beginning at the Northeasternmost corner of said Parcel Four and proceeding S 00009'33" E along the East line of said Parcel Four, 269.81 feet to the Westerly tenninus of the Northeast line of a Pedestrian/Equestrian Easement as shown on Parcel One on that Parcel Map recorded in Book 663 of Maps at Pages 13 and 14, Santa Clara County Records; thence N 30015' W 412.10 feet more or less to a point on the Northeasterly line of said Parcel Four; thence 5 67023' E. 224.09 feet along last said line to the point of beginning. APN 810-17-026, 810-17-029 PARCEL FOUR: A portion of Parcels Two and Three as shown on that Parcel Map recorded in Book 494 of Maps, at page 43, Santa Clara County Records, lying In Santa Clara County, California, described as follows: Beginning at a point on the South line of said Parcel Two, said point lying S 89 deg. 35' 00" W 145.44 feet from the Southeasterly angle pOint in said Parcel Two, last said angle point being produced by the courses S 17 deg. 40' 40" W 105.66 feet and S 89 deg. 35' 00" W 428.05 feet as shown on said Map; thence along the following courses: COURSE NO. 1. N 19 deg. 21' 40" E 417.99 feet 2. N 76 deg. 19' 19" W 13.90 feet 3. N 17 deg. 40' 40" E 1089.46 feet 4. N 64 deg. 27' 00" E 208.60 feet to a point on the Northeasterly line of said Parcel Two, said point lying N 69 deg. 43' 49" W 9.45 feet from the Northeastern corner of said Parcel Two; thence along the Northestem Une of said Parcels Two and Three and along the Easterly and Southerly line s of said Parcel Three the following courses: COURSE NO. Exhibit Page. Legal(exhlbit)(08-07) 5, S 69 deg. 43' 49" E 689.53 feet 6. S. 0 deg. 03' 40" W 778.37 feet 7. East 70.00 feet I 8.517 deg. 45' 49" W 294.02 feet 9. West 160,00 feet 10. S 0 deg. 03' 40" W 350.00 feet 11. N. 78 deg. 40' 00" W 1134.00 feet 12. S 17 deg. 40' 40" W 105.66 feet, and 13. S 89 deg. 35' 00" W 145.44 feet to the pOint of beginning. APN 810-17-014, 015, 021, 024 AND 025 PARCEL FIVE: A non-exclusive easement for Ingress and Egress and for the installation and maintenance of public utilities, appurtenant tD the above described parcels, over a strip of land 60.00 feet in width, lying 10.00 feet Westerly of and 50.00 feet Easterly of the following described line: Beginning at a point in the Southwesterly line of the State Highway lV-SCI-32D-1957, distant thereon South 60 deg 14' 20" East 232.40 feet from a concrete monument at Station 325 57.01 E. C. of said Highway and running thence South 57 deg 45' 40" West 161.79 feet; South 41 deg 31' 40" West 262.30 feet; South 31 deg 44' 40" West 311.70 feet; South 3 deg 19' 10" West 344.34 feet; South 23 deg 29' 50" East 166.48 feet; thence Southwesterly 150 feet, more or less, to a point which bears South 71 deg 14' 02" East 94.02 feet and North 19 deg 29' 13" East 110.0 feet from the most Easterly comer of Parcell, as said Parcel is shown upon that certain Map entitled, "Record of Survey being a portion of the solis Rancho", which Map was filed for record in the Office of the Recorder of the County of Santa Clara, State of California on December 7, 1967 in Book 231 of Maps, at Page 22; thence South 19 deg 29' 13" West 110.00 feet and the terminus of said easement, said easement is appurtenant to and for the Benefit of Parcels Three, Four, Seven and Twelve. PARCEL SIX: A non-exclusive easement for Ingress and Egress and for the installation a nd maintenance of publiC utilities and for water pipe lines, appurtenant to the above described parcels, over an existing roadway 60.00 feet in width, the center line of which is described as follows: Beginning at the point of intersection of the Easterly line of that certain 160.91 acre tract of land described as Parcel Three in the Deed from Jack De Bell, et ux, to the De Bell Corporatlon, dated October 26, 1956, recorded April 29, 1957 in Book 3786 Official Records, page 463, Santa Clara County Records, with the Southwesterly line of Hecker Pass Road, as said line was established by Parcel One in the Deed from the De Bell Corporation, to the State of California dated June 12, 1957, recorded July 30, 1957 In Book 3655 Official Records, page 512, Santa Clara County Records; thence from said point of beginning South o deg OS' 19" West along said Easterly line of the 160.91 acre tract for a distance of 1370.09 feet to the True Point of Beginning of the easement to be described; thence from said True Point of Beginning North 69 deg. 43' 49" West 1460.17 feet to the terminus of said easement, said easement is appurtenant to and for the Benefit of Parcels Three, Four and Twelve. Excepting therefrom all that portion thereof lying within the above described Parcels Three and Four. PARCEL SEVEN: All of Parcel Two, as shown upon that certain Map entitled, "Parcel Map, being a portion of the Las Animas Rancho", which Map was filed for record in the Office of the Recorder of the County of Santa Clara, State of California on October 12, 1993 in Book Exhibit Page -legal(exhiblt)(08-07) 650 of Maps, at Page 49. APN 810-18-010 and 011 PARCEL EIGHT: An easement 40 feet In width for Ingress and egress and public utilities the centerline of said easement described as follows: Commencing at a point in the centerline of that 60 foot wide easement recorded in Book 7981 of Official Records at Page 56, Santa Clara County Records, said point being the northeast tenninius of that course shown as No. 16 on that Parcel Map recorded in Book 494 of Maps, at Page 43, Santa Cia ra Cou nty Records and proceeding S 20016'11" W 30.00 feet to a point on the southwesterly line of said easement to the Point of Beginning; thence from said Point of Beginning S 27003' W 28.19 feet to station "A"; thence along a curve to the right with a radius of 40 feet at an angle of 60.00 feet for a distance of 41.89 feet to station "B"; thence S 87003' W 28.00 feet to station C; thence along a curve to the left with a radius of 85.47 feet at an angle of 70033'08" for a distance of 105.24 feet to station "0"; thence S 16029'S2'W for a distance of 224.83 feet to station "E"; thence on a curve to the left with a radius of 457.22 feet at an angle of 18037'52" for a distance of 148.68 feet to station "P'; thence S 2008' E for a distance of 32.29 feet to station "G"; thence on a curve to the right with a radius of 196.58 feet at an angle of 41046' for a distance of 143.30 feet to station "H"; thence S 39038' W for a distance of 151.72 feet to station "f'; thence on a curve to the left with a radius of 250.00 feet at an angle of 45.000 for a distance of 196.34 feet to station "J"; thence S 5022' E 110.00 feet to station ilK"; thence on a curve to the right with a radius of 414.00 feet at an angle of 21010' for a distance of 152.94 feet to station "l"; thence 5 15048' W 93.00 feet to station "M"; thence on a curve to the left with a radius of 243.00 feet at an angle of 30031' for a distance of 129.42 feet to station "N"; thence S 14043' E 456.60 feet more or less to a point on the south line of parcel two of said parcel map, last said point being 152.52 feet westerly from the southerly tenninus of that oourse, (S 0025'00" E 89.33 feet), as shown on said parcel map, to station "0", said easement is appurtenant to and for the Benefit of Parcel Seven. PARCEL NINE: An easement for ingress and egress described as follows: Beginning at the point of beginning of the above described 40 foot wide easement and running S 69043'49" E 20.00 feet to the easterty line of said 40.00 foot wide easement being the true point of beginning; thence S 69043'49" E along the southwesterly line of the 60.00 foot easement (7981-or-56) 30 feet; thence 80 feet more or less southwesterly to the mid point (on the southeast line of above described 40 foot easement) of the 40.00 foot radius (centerline) curve; thence northeasterly along the southeasterly line of said 40.00' foot wide easement above described 60 feet more or less to true point of beginning, said easement is appurtenant to and for the Benefit of Parcel Seven. . PARCEL TEN: A 10 foot wide easement for Ingress and egress. The easterly line of said easement described as follows: Commencing at above station "l" and running S 15048'W 40.00 feet and N 74012' W 20.00 feet to the True Point of Beginning; thence S 15048' W 53.00 feet; thence southerly along a 263.00 foot radius curve to the left, having an interior angle of 17025'4211 a distance of 80.00 feet to the tenninus of said easement, said easement is appurtenant to and for the Benefit of Parcel Seven. PARCEL ELEVEN: An easement for Ingress-egress said easement described as follows: exhibit Page - Legal(exhlblt)(08-07) Commencing at said station 1I0"~ and proceeding S 89035' W along the Southerly line of Parcel Two as shown on Parcel Map recorded in Book 494 of Maps at Page 43, Santa Clara County Records 20.64 feet to the True Point of Beginning; thence continuing S 89035' W 25.00 feet; thence N 37026'15" E 30.68 feet to a paint on the Southwesterly line of the 40 foot wide easement above described; thence S 14043' E 25.00 feet to the Point of Beginning, said easement is appurtenant to and for the Benefit of Parcel Seven. PAR.CEL TWELVE: A Portion of Parcels One and Four as shown on that Parcel Map recorded in Book 494 of Maps at Page 43, Santa Oara County, and a Portion of Lands of Blocher, 1361 O.R. 202, Santa Clara County Records, described as follows: Beginning ata Point on the West Une of said Parcel four, said Point also being at the Northeastern most comer of Parcel Three as shown on said Parcel Map said Point also lying on the West line of Lands of Nab Hill General Store, Inc., a California Corporation, as described in that Deed recorded in K805 of Offidal Records at page 1589, Santa Oara County, and proceeding along the Westerty, Southerty, Easterty and Northerty lines of said Parcel four and said lands of Nab Hill the following courses: COURSE NO. 1. S 0 deg. 03' 40" W 778.37 feet 2. East 70.00 feet 3. S 17 deg. 45' 4911 E 294.02 feet 4. West 160.00 feet 5. S 0 deg. 03' 40" W 418.87 feet 6. SO deg. 13' 40" W 4094.58 feet 7. East 1254.00 feet 8. N 0 deg. 14' E 4527.60 feet 9. N 0 deg. 02' W 1672.30 feet 10. N 67 deg. 23' W 262.00 feet 11. N 49 deg. 20' 3011 W 98.97 feet 12. N 31 deg. 26' W 154.34 feet 13. S 37 deg. 18' 09 W 85.48 feet 14. N 42 deg. 54' 55" W 294.28 feet 15. N 38 deg. 11' 51" W 55.00 feet 16. N 72 deg. 45' 58" W 83.84 feet 17.566 deg. 33' 05" W 57.31 feet 18, N 69 deg. 23' 35" W 301.68 feet to the Easternmost corner of those lands conveyed to the State of California by J627 of Official Records at page 1271, Santa Clara County; thence along the Southerty line of last saicllands S 83 deg. 53' 57" W 44.13 feet; thence Northwesterly along a 1585 Foot radius curve to the right, from a tangent bearing N 82 deg. 52' 34" W., said curve having an interior angle of 18 deg. 50' 48", and a length of 521.36 feet to a point lying 91.84 feet Southerty along the saicl1585 Foot radius curve from an angle pOint in last said Southerty line; thence S 0 deg. 09' W 419.62 feet; thence S 17 deg. 14' 00" E 810.00 feet; thence S 20 deg. 16' 11" W 194.80 feet to a point on the Northeasterly line of said Parcel Three, last said point being N 69 deg. 43' 49" W 288.41 feet from the Northeasterly comer of said Parcel Three; thence S 69 deg. 43' 49" E. 288.41 feet to the Point of Beginning. Excepting therefrom the the following described parcel of land: Beginning at the Northeastern most corner of said Parcel Four and proceeding 5 00 deg. 09' 33" E along the East line of said Parcel Four, 269.81 feet to the Westerly terminus of the Northeast line of a Pedestrian/Equestrian Easement as shown on Parcel One on that Parcel Map recorded In Book 663 of Maps at Pages 13 and 14, Santa Clara County Records; thence N 30 deg. 15' W 412.10 feet more or less to a point on the Northeasterly line of said Parcel Four; thence S 67 deg. 23' E 224.09 feet along last said line to the Point of Beginning. Exhibit Page. Legal(exhlblt)(08-07} Excepting therefrom all that portion lying Westerly of the Westerly line of said Parcel 4 1 And, in addition thereto, the following parcel of land designated as ''Transfer Parcel" on the accompanying plat entitled "Exhibit B", being more particularly described as follows: A portion of Parcel B, as said Parcel is described In that certain Certificate of Compliance for lot line Adjustment filed for record as Document Number 14139227, Official Records of Santa Clara County, California, being more partlcularlydescribed as follows: BEGINNING at southwesterly comer of said Parcel B, said point also being the southerly terminus of the course designated as S 0002" E 1672.30 feet on that certain Lot Line Adjustment Parcel Map filed for record in Book 494 of Maps, at Page 43, Records of Santa Clara County, California, and the northwest comer of Lot 61, as said lot 61 is shown on the map of Tract 9365, Eagle Ridge, filed for record in Book 748 of Maps, at Page 20, Records of Santa Oara County, California; thence running along the common line of said Parcel B and Parcel C 1.) N 000 09' 33" W, a distance of 1,402.67 feet to the northwesterly comer of said Parcel B; thence leaving said common line and running along the northerly line of said Parcel B 2.) S 310 08' 00" E, a distance of 282.40 feet to the beginning of a curve to the left having a radius of 193.00 feet; thence continuing along said northerly line 3.) Southeasterly along said curve, through a central angle of 490 or 00", a distance of 165.45 feet to the beginning of a compound curve to the left having a radius of 632.00 feet; thence continuing along said northerly line 4.) Easterly along said curve, through a central angle of 230 25' 00", a distance of 258.30 feet; thence continuing along said northerly line 5.) N 76020' 00" E, a distance of 499.27 feet to the beginning of a curve to the right having a radius of 1,360.00 feet; thence continuing along said northerly line 6.) Easterly along said curve, through a central angle of 13040' OO"i a distance of 324.40 feet; thence continuing along said northerly line 7.) East, a distance of 88.59 feet to the beginning of a curve to the left: having a radius of 65.00 feet; thence continuing along said northerly line 8.) Easterly along said curve, through a central angle of 040 37' 09"; a distance of 5.24 feet; thence continuing along said northerly line 9.) S 00036' 00" E, a distance of 0.34 feet; thence continuing along said northerly line 10.) 5890 59' 56" E, a distance of 240.84 feet to the northeasterly comer of said Parcel B; thence leaVing said northerly line and running along the easterly line of said Parcel B 11.) S OooOS' 00" E, a distance of 304.39 feet; thence leaving said easterly line 12.) S 870 59' 43" W, a distance of 330.76 feet; thence exhibit Page. L.ega/(exhlbit)(08-07) 13.) N 890 02' 02" W, a distance of 222.92 feet; thence 14.) 5 840 51' 07" W, a distance of 357.84 feet; thence 15.) 5760 21' 10" W, a distance of 402.59 feet; thence 16.) N 880 13' 32" W, a distance of 194.26 feet; thence 17.) N 630 29' 09" W, a distance of 72.82 feet; thence 18.) 5 210 41' 39" W, a distance of 190.51 feet; thence 19.) 5 000 46' 42" E, a distance of 146.48 feet; thence 20.) 5 090 19' 49" E, a distance of 120.58 feet; thence 21.) 5 020 29' 27" W, a distance of 36.13 feet; thence 22.) 5 040 18' 56" W, a distance of 178.81 feet; thence 23.) S 000 07' 43" W, a distance of 178.08 feet to the southerly line of said Parcel B, also being the northerly line of said lot 61 of Tract 9365; thence running along said southerly line of Parcel B and northerly line of lot 61 24.) N 89" 52' 17" W, a distance of 48.11 feet to the POINT OF BEGINNING. Being Parcel C as described in the Certificate of Compliance Recorded May 2, 2005 as Instrument No. 18348300. APN 810-18-002; 810-19-005, 007, 010, 011, and 014 PARCEL THIRTEEN: An Easement for the purposes of Ingress and Egress and Utilities, as conveyed to Bonfante Gardens, Inc., a Delaware Non- Profit corporation by Grant Deed recorded April 28, 1999 as Instrument No. 14780039, and being more particularly described as follows: Beginning at a point on the East line of Parcel Four as shown upon that Parcel Map recorded In Book 494 of Maps at Page 43, Santa Clara County Records, said point being the Southwest comer of Parcel One as shown upon that Parcel Map recorded in Book 663 of Maps at Pages 13 and 14, Santa Oara County Records; thence Southerly along said East line of Parcel Four, 360.00 feet; thence S. 89 deg. 52' 17" E. 60.00 feet; thence Northerly 360.00 feet to a point on the South line of said Parcel One, last said point lying S. 89 deg. 52' 17" E. 60.00 feet from the point of beginning; thence N. 89 deg. 52' 17" W. 60.00 feet to the point of beginning. Exhibit Page - legal(exhlblt)(08.07) RECORDING REQUESTED BY: Chicago Title Company WHEN RECORDED MAIL DOCUMENT AND TAX STATEMENT TO: City Clerk C/O City of Gilroy 7351 Rosanna Street Gilroy, CA 95020 Escrow No.: 07-98702516-JW Locate No.: CACTI7743-7743-2987-0098702516 Tilte No.: 07'98702516-KV DOCUMENT: 19761543 11m I~ II1II1I11 mill III Fees. Taxes Copies AHT PAID Pages: \5 . No Fees ROE It 0 I 1 2/29/2008 1'30 PM REGINA ALCOHENORAS SANTA CLARA COUNTY RECORDER Recorded at the request of Chicago Title SPACE ABOVE THIS UNE FOR RECORDER'S USE Memorandum MAIL TAX STATEMENTS AS DIRECTED ABOVE THIS PAGE ADDED TO PROVIDE ADEQUATE SPACE FOR RECORDING INFORMATION (Additional recording fee applies) (recoversc)(02-Q6) I' 'f INSURED CHICAGO Tl MEMORANDUM RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Gilroy 7351 Rosanna Street Gilroy, California 95020 Attn; City Clerk RECORDING REQUESTED PURSUANT TO GOVERNMENT CODE SECTIONS 6103 AND 27383. SPACE ABOVE THIS LINE FOR RECORDER'S USE MEMORANDUM THIS MEMORANDUM is entered into as of c:l- ~ , 2008, by and between the CITY OF GILROY, a municipal corporation ("Landlord") and GILROY GARDENS F AMIL Y THEME PARK, a Delaware nonprofit corporation formerly known as "Bonfante Gardens, Inc." ("Tenant"), with respect that certain unrecorded Lease dated as of the date hereof by and between Landlord and Tenant. Pursuant to said Lease, Landlord leases to Tenant, and Tenant leases from Landlord, certain real property located in the City of Gilroy, County of Santa Clara, State of California, as more particularly described in Exhibit A attached hereto, together with the buildings and other improvements thereon, upon the terms and conditions of the Lease. The term of the Lease shall be for approximately two (2) years commencing on the date hereof and expiring at midnight on February 28,2010, subject to sooner termination as set forth in the Lease. This Memorandum shall incorporate all ofthe provisions of the Lease as though fully set forth herein. This Memorandum is entered by the parties for purposes of recordation and shall not be deemed to modify, amend, alter, limit or otherwise change any of the provisions of the Lease. In the event of any conflict or ambiguity between the terms of this Memorandum and the terms of the Lease, the terms of the Lease shall prevail. ,. IN WITNESS WHEREOF, Landlord and Tenant have duly executed this Memorandum as of the dates set forth below. GILROY GARDENS FAMILY THEME PARK, INC., a Delaware nonprofit public benefit corporation formerly known as "Bonfante Gardens, Inc." j/J.. ~ }_ By: /~ ~ Rob(r~ l'..r~m~r Its: By: Its: By: r CITY OF GI a municipal c Its: Attest: By: Approved as to form: By: ~~~ City Attorney 2 State of California County of Santa Clara ) ) On February 28. 2008 Janet K. Wallace personally appeared Joel Goldsmith who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) isjare subscribed to the within Instrument and acknowledged to me that ~she/they executed the same in his/her/their au'ffiorlzed capaclty(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the Instrument. before me, . Notary Public (here Insert name and title of the officer), I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph Is true and correct. ..............................1 ra . a . . . . ~~ET K. WALLACE . .-.... COMMa #1 $92532 rn .... : . NoW)' publlc:.callfornla :t fii . ,; SANTA ClAAA COUHTY UI comm. Iir.p. JIlIy 13, aoo9 Signatur (notaryX12.07) . , State of California County of Santa Clara ) ) On February 28.2008 Janet K. Wallace personally appeared Anna Jatczak who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s)~/are subscribed to the within instrument and acknowledged to me that he/~ey executed the same In his/her/their authorized capacity{les), and that by his/her/their slgnature(s) on the instrument the person(s), or the entity upon behalf of which the person{s) acted, executec.rffi'e Instrument. before me, . Notary Public (here insert name and title of the officer), I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph Is true and correct. Signature ~ (Seal) r@' j.;,;.:,. 'K~ ...Acu.'c'it i '. .. COMM. #1$92532 m W 0 Hotary Publlc.(;aUfornll en SANTA Cl.AAA COUNTY :0: 1... . . .. ~~ COlll",..I~~. ~U~ !'~ !~'j (notary)( 12-07) . . . State of CalifornIa County of Santa Clara ) ) On February 28. 2008 Janet K. Wallace personally appeared Robert Kraemer. who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s)~are subscribed to the within Instrument and acknowledged to me that.pe.lshe/they executed the same in his/her/their authorized capadty(les), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. before me, , Notary Public (here insert name and title of the officer), I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. Signature (Seal) )' . '.. ..: . . ~~~E~.K~ ~~~~~~E. . ( _@"-"'COMM'#1592532m c;; . G Notary Publlc.(;.lIfornla !:!! W SANTA ClARA COUNTY .... J... . . _. ~~~~._~~~II'~~'~.l (notary)(12-07) EXHIBIT A TO MEMORANDUM (Legal Description to be Attached] 4 Escrow No.: 07.9S702516-JW Locate No.: CAcn7743-7743-2987-D098702516 Title No.: 07-98702516-Ky EXHIBIT "A" THE LAND REFERRED TO HEREIN BElOW IS SITUATED IN THE CITY OF GILROY, COUNTY OF SANTA CLARA, STATE OF CAUFORNIA, AND IS DESCRIBED AS FOllOWS: PARCEL ONE: Beginning at the point of Intersection of the Northeasterly line of Hecker Pass Highway, as said line was established by Parcel One in the Deed from the De Bell Corporation, a Corporation, to the State of Califomia, dated June 12,1957, recorded July 30, 1957 in Book 3855 Official Records, Page 512, Santa Clara County Records, with the Easterly line of that certain 24.07 acre tract of land described in the Deed from Jack De Bell et ux, to Louis A. Filice, et ux, dated September 15, 1954 recorded October 19, 1954 in Book 2986 Official Records, Page 527, Santa Clara County Records; thence from said Point of Beginning South 60 deg 42' 34" East along said Northeasterly line of Hecker Pass Highway for a distance of 599.78 feet; thence Southeasterly continuing along said last mentioned line along an arc of a curve to the left, tangent to the preceding course, with a radius of 1450.00 feet, through a central angle of 14 deg 52' 00", for an arc distance of 376.24 feet to the point of intersection thereof with the Southeasterly prolongation of a Westerly line of that certain 3.728 acre tract of land described in that certain final order of condemnation entered on November 3, 1958 in the Superior Court of the State of California, in and for the County of Santa Clara In that certain action entitled, 'The People of the State of California, Actlng By and Through the Department of Public Works, Plaintiff, vs. louis A. Felice et ai, Defendants Case No. 103483," a certified copy of which order was filed for record in the Office of the Recorder of the County of Santa Clara, State of California, on November 3, 1958 in Book 4219 Official Records, Page 701, Santa Clara County Records (shown as South 33 deg 16' 39" East 246.03 feet; thence North 33 deg 16' 30" West along said prolongation and the said Westerly line of the 3.728 acre tract for a distance of 376.66 feet to the Northwesterly comer of said 3.728 acre tract said point also being the Southwesterly comer of that certain 1567 acre tract of land described as Parcel Two in the Deed to said State of California above referred to; thence North 24 deg 18' 19" West along the Westerly line of said 1.567 acre tract for a distance of 94.17 feet, thence North 37 deg 18' 07" East continuing along said Westerly line of the 1.567 acre tract and its Northeasterly prolongation for a distance of 254.41 feet to the Northeasterly comer of that certain tract of land described in the Deed from the State of California, to the De Bell Corporation, a California Corporation, dated August 30, 1957, recorded September 27, 1957 in Book 3900 OffICial Records, Page 632, Santa Oara County Records; thence North 88 deg 39' 04" West along the Northerly line of land so described in the Deed to said De Bell Corporation for a distance of 433.45 feet to the Northwesterly corner thereof; thence South 1 deg 47' West along the Westerly line of land so described in the Deed to said De Bell Corporation for a distance of 64.46 feet to the Southwesterly comer thereof in the Northerly line of that certain 160.91 acre tract of land described as Parcel Three in the Deed from Jack De Bell et ux, to the De Bell Corporation, a California Corporation, dated October 26, 1956, recorded April 29, 1957 in Book 3786 Official Records Page 463, Santa Clara County Records; thence North 88 deg 13' West along said Northerly line of the 160.91 acre tract for a distance of 291.56 feet to the Northeasterly comer of the said 24.07 acre tract above referred to; thence South 23 deg 11' West along the Easterly line of said 24.07 acre tract for a distance of 130 feet more or less to the Point of Beginning. Excepting from the above described Parcel One, the following described parcel of land: Beginning at the point of intersection of the Northeasterly line of Hecker Pass Road, as said line was established by Parcell in the Deed from De Bell Corporation, a Corporation, to the State of California, dated June 12, 1957, recorded July 30, 1957 in Book 3855 Official Records, Page 512, Santa Clara County Records, with the Northwesterly line of that certain 160.91 acre tract of land described as Parcel Three in the Deed from Jack De Bell et ux, to the De Bell Corporation, a California Corporation, dated October 26, 1956, recorded April 29, 1957 In Book 3736 Official Records, Page 463, Santa Clara County Records; thence from said Point of Beginning South 60 deg 42' 34" East along said Northeasterly line of Hecker Pass Road, for a distance of 80.00 feet, thence leaving said last mentioned line and running North 29 deg 17' 26" East 170 feet, more or less, to the point of intersection thereof with the Southwesterly line of the Old Hecker Pass road; thence South 66 deg 15' East along said Southwesterly line of the Old Hecker Pass Road for a distance of 270.00 feet; thence leaving said last mentioned line and exhibit Page - Legal(exhiblt)(08-07) running North 23 deg 00' East 99.6 feet to the True Point of Beginning of the tract of land to be described; thence from said True Point of Beginning North 67 deg 00' West 10.00 feet; thence at right angles North 23 deg 00' East 20.00 feeti thence at right angles South 67 deg 00' East 20.00 feet; thence at right angles South 23 deg 00' West 20.00 feet; thence at right angles North 67 deg DO' West 10.00 feet to the True Point of Beginning. APN 783-05-011 AND 013 PARCEL TWO: Beginning at the point of intersection of the Northeasterly line of Hecker Pass Road, as said line was established by Parcell in the Deed from the De Bell Corporation, a Corporation, to the State of California, dated June 21, 1957, recorded July 30, 1957 in Book 3855 Official Records, Page 512, Santa Clara County Records, with the Northwesterly line of that certain 160.91 aaetract of land described as Parcel Three in the Deed from Jack De Bell, et ux, to the De Bell Corporation, a California Corporation, dated October 26, 1956, recorded April 29, 1957 in Book 3736 Official Records, Page 463, Santa Clara County Recordsi thence from said Point of Beginning South 60 deg 42' 34" East along said Southeasterly line of Hecker Pass Road for a distance of 80.00 feet, thence leaving said last mentioned line and running North 29 deg 17' 26" East 170 feet, more or less, to the point of intersection thereof with the Southwesterly line of the Old Hecker Pass Road; thence South 66 deg 15' East along said Southwesterly line of the Old Hecker Pass Road for a distance of 270.00 feet; thence leaving said last mentioned line and running North 23 deg 00' East 99.6 feet to the True Point of Beginning of the tract of land to be described; thence from said True Point of Beginning North 67 deg 00' West 10.00 feet; thence at right angles North 23 deg 00' East 20.00 feet; thence at right angles South 67 deg 00' East 20.00 feet; thence at right angles South 23 deg 00' West 20.00 feet; thence at right angles North 67 deg 00' West. 10.00 feet to the True Point of Beginning. APN 783-05-012 PARCEL THREE: A Portion of Parcels One and Four as shown on that Parcel Map recorded in Book 494 of Maps at Page 43, Santa Clara County, and a Portion of lands of Blocher, 1361 O.R. 202, Santa Clara County Records, described as follows: Beginning ata Point on the West Une of said Parcel four, said Point also being at the Northeastern most corner of Parcel Three as shown on said Parcel Map said Point also lying on the West line of lands of Nob Hill General Store, Inc., a California Corporation, as described In that Deed recorded in 1<805 of Official Records at page 1589, Santa Clara County, and proceeding along the Westerly, Southerly, Easterly and Northerly lines of said Parcel four and said lands of Nob Hill the following courses: 1. S 0 deg. 03' 40" W n8.37 feet 2. East 70.00 feet 3. S 17 deg. 45' 49" E 294.02 feet 4. West 160.00 feet 5. S 0 deg. 03' 40" W 418.87 feet 6. S 0 deg. 13' 40" W 4094.58 feet 7. East 1254.00 feet 8. N 0 deg. 14' E 4527.60 feet 9. N 0 deg. 02' W 1672.30 feet 10. N 67 deg. 23' W 262.00 feet 11. N 49 deg. 20' 30" W 98.97 feet 12. N 31 deg. 26' W 154.34 feet 13. S 37 deg. 18' 09 W 85.48 feet 14. N 42 deg. 54' 55" W 294.28 feet 15. N 38 deg. 11' 51" W 55.00 feet 16. N 72 deg. 45' 58" W 83.84 feet 17. 5 66 deg. 33' 05" W 57.31 feet 18. N 69 deg. 23' 35" W 301.68 feet to the Easternmost corner of those lands conveyed to the State of California by J627 of Official Records at page 1271, Santa Clara County; thence along the Southerly line of last said lands S 83 deg. 53' 57" W 44.13 feet; thence Northwesterly along a exhibit Page. legal(exhibit)(Oa-07) 1585 Foot radius curve to the right, from a tangent bearing N 82 deg. 52' 34" W., said curve having an Interior angle of 18 deg. 50' 48", and a length of 521.36 feet to a point lying 91.84 feet Southerly along the said 1585 Foot radius curve from an angle point in last said Southerly line; thence 5 0 deg. 09' W 419.62 feet; thence S 17 deg. 14' DO" E 810.00 feet; thence S 20 deg. 16' 11" W 194.80 feet to a point on the Northeasterly line of said Parcel Three, last said point being N 69 deg. 43' 49" W 288.41 feet from the Northeasterly corner of said Parcel Three; thence 5 69 deg. 43' 49" E. 288.41 feet to the Point of Beginning. Excepting therefrom the following described parcel of land: Beginning at the Northeastern most comer of said Parcel Four and proceeding S 00 deg. 09' 33" E along the East line of said Parcel Four, 269.81 feet to the Westerly terminus of the Northeast line of a Pedestrian/Equestrian Easement as shown on Parcel One on that Parcel Map recorded in Book 663 of Maps at Pages 13 and 14, Santa Clara County Records; thence N 30 deg. 15' W 412.10 feet more or less to a point on the Northeasterly line of said Parcel four; thence 5 67 deg. 23' E 224.09 feet along last said line to the Point of Beginning. Also excepting therefrom "Parcel C' as described in that certain Certificate of Compliance recorded April 14, 1998 as Instrument No. 14139227, Official Records of Santa Clara County, and being more particularly described as follows: A portion of real property located in the County of Santa Clara, State of California, described as follows: All of Parcel Four as shown on that Parcel Map recorded in Book 494 of Maps at Page 43, Santa Clara County Records, Except therefrom the following: Beginning at the Northeasternmost corner of said Parcel Four and proceeding S 00009'33" E along the East line of said Parcel Four, 269.81 feet to the Westerly terminus of the Northeast line of a Pedestrian/Equestrian Easement as shown on Parcel One on that Parcel Map recorded in Book 663 of Maps at Pages 13 and 14, Santa Clara County Records; thence N 30015' W 412.10 feet more or less to a point on the Northeasterly line of said Parcel four; thence S 67023' E. 224.09 feet along last said line to the point of beginning. - APN 810-17-026,810-17-029 PARCEL FOUR: A portion of Parcels Two and Three as shown on that Parcel Map recorded in Book 494 of Maps, at page 43, Santa Clara County Records, lying in Santa Clara County, California, described as follows: Beginning at a point on the South line of said Parcel Two, said point lying S 89 deg. 35' 00" W 145.44 feet from the Southeasterly angle point /n said Parcel Two, last said angle point being produced by the courses S 17 deg. 40' 40" W 105.66 feet and S 89 deg. 35' DO" W 428.05 feet as shown on said Map; thence along the following courses: COURSE NO. 1. N 19 deg. 21' 40" E 417.99 feet 2. N 76 deg. 19' 19" W 13.90 feet 3. N 17 deg. 40' 40" E 1089.46 feet 4. N 64 deg. 27' DO" E 208.60 feet to a point on the Northeasterly line of said Parcel Two, said point lying N 69 deg. 43' 49" W 9.45 feet from the Northeastern comer of said Parcel Two; thence along the Northestern Une of said Parcels Two and Three and along the Easterly and Southerly line s of said Parcel Three the fo/Iowing courses: COURSE NO. exhibit Page - L.egal(exhlbit)(08-07) 5. S 69 deg. 43' 49" E 689.53 feet 6. S. 0 deg. 03' 40" W 778.37 feet 7, East 70.00 feet 8.517 deg. 45' 49" W 294.02 feet 9. West 160.00 feet 10. SO deg. 03' 40" W 350.00 feet 11. N. 78 deg. 40' 00" W 1134.00 feet 12. S 17 deg. 40' 40" W 105.66 feet, and 13. S 89 deg. 35' 00" W 145.44 feet to the point of beginning. APN 810-17-014,015,021,024 AND 025 PARCEL FIVE: A non-exclusive easement for Ingress a nd Egress and for the installation and maintenance of public utilities, appurtenant to the above described parcels, over a strip of land 60.00 feet in width, lying 10.00 feet Westerly of and 50.00 feet Easterly of the following described line: Beginning at a point in the Southwesterly line of the State Highway IV-SCI-32D-1957, distant thereon South 60 deg 14' 20" East 232.40 feet from a concrete monument at Station 325 57.01 E. C. of said Highway and running thence South 57 deg 45' 40" West 161.79 feet; South 41 deg 31' 40" West 262.30 feet; South 31 deg 44' 40" West 311.70 feet; South 3 deg 19' 10" West 344.34 feetj South 23 deg 29' SO" East 166.48 feet; thence Southwesterly 150 feet, more or less, to a point which bears South 71 deg 14' 02" East 94.02 feet and North 19 deg 29' 13" East 110.0 feet from the most Easterly corner of Parcell, as said Parcel is shown upon that certain Map entitled, "Record of Survey being a portion of the solis Rancho", which Map was filed for record in the Office of the Recorder of the County of Santa Clara, State of California on December 7, 1967 In Book 231 of Maps, at Page 22; thence South 19 deg 29' 13" West 110.00 feet and the terminus of said easement, said easement is appurtenant to and for the Benefit: of Parcels Three, Four, Seven and Twelve. PARCEL SIX: A non-exclusive easement for Ingress and Egress and for the installation and maintenance of public utilities and for water pipe lines, appurtenant to the above described parcels, over an existing roadway 60.00 feet in width, the center line of which is described as follows: Beginning at the point of intersection of the Easterly line of that certain 160.91 acre tract of land described as Parcel Three in the Deed from Jack De Bell, et ux, to the De Bell Corporation, dated October 26, 1956, recorded April 29, 1957 in Book 3786 Official Records, page 463, Santa Clara County Records, with the Southwesterly line of Hecker Pass Road, as said line was established by Parcel One in the Deed from the De Bell Corporation, to the State of California dated June 12, 1957, recorded July 30, 1957 in Book 3655 OffICial Records, page 512, Santa Oara County Records; thence from said point of beginning South o deg 05' 19" West along said Easterly line of the 160.91 acre tract for a distance of 1370.09 feet to the True POint of Beginning of the easement to be described; thence from said True Point of Beginning North 69 deg. 43' 49" West 1460.17 feet to the terminus of said easement, said easement is appurtenant to and for the Benefit of Parcels Three, Four and Twelve. Excepting therefrom all that portion thereof lying within the above described Parcels Three and Four. PARCEL SEVEN: All of Parcel Two, as shown upon that certain Map entitled, "Parcel Map, being a portion of the Las Animas Rancho", which Map was filed for record in the Office of the Recorder of the County of Santa Clara, State of California on October 12, 1993 in Book ExhIbit Page - Legal(exhlbit)(OS-07) 650 of Maps, at Page 49. APN 8UrlS-OlO and 011 PARCEL EIGHT: An easement 40 feet in width for ingress and egress and public utilities the centerline of said easement described as follows: Commencing at a point In the centerline of that 60 foot wide easement recorded in Book 7981 of OffICial Records at Page 56, Santa Clara County Records, said point being the northeast terminius of that course shown as No. 16 on that Parcel Map recorded in Book 494 of Maps, at Page 43, Santa Clara County Records and proceeding 5 20016'11" W 30.00 feet to a point on the southwesterly line of said easement to the Point of Beginning; thence from said Point of Beginning 5 27003' W 28.19 feet to station "A"; thence along a curve to the right with a radius of 40 feet at an angle of 60.00 feet for a distance of 41.89 feet to station "B"; thence 5 87003' W 28.00 feet to station C; thence along a curve to the left with a radius of 85.47 feet at an angle of 70033'08" for a distance of 105.24 feet to station "0"; thence S 16029'52"W for a distance of 224.83 feet to station "E"; thence on a curve to the left with a radius of 457.22 feet at an angle of 1803752" for a distance of 148.68 feet to station "F"; thence 5 2008' E for a distance of 32.29 feet to station "G"; thence on a curve to the right with a radius of 196.58 feet at an angle of 41046' for a distance of 143.30 feet to station "H"; thence 5 39038' W for a distance of 151.72 feet to station 'T'; thence on a curve to the left with a radius of 250.00 feet at an angle of 45.000 for a distance of 196.34 feet to station "J"; thence 5 5022' E 110.00 feet to station "K"; thence on a curve to the right with a radius of 414.00 feet at an angle of 21010' for a distance of 152.94 feetto station "L"; thence 5 15048' W 93.00 feet to station "M"; thence on a curve to the left with a radius of 243.00 feet at an angle of 30031' for a distance of 129.42 feet to station "N"; thence 5 14043' E 456.60 feet more or less to a point on the south line of parcel two of said parcel map, last said point being 152.52 feet westerly from the southerly terminus of that course, (5 0025'00" E 89.33 feet), as shown on said parcel map, to station "0", said easement is appurtenant to and for the Benefit of Parcel Seven. PARCEL NINE: An easement for ingress and egress described as follows: Beginning at the point of beginning of the above described 40 foot wide easement and running S 69043'49" E 20.00 feet to the easterly line of said 40.00 foot wide easement being the true point of beginning; thence S 69043'49" E along the southwesterly line of the 60.00 foot easement (7981-or-56) 30 feet; thence 80 feet more or less southwesterly to the mid point (on the southeast line of above descrlbed 40 foot easement) of the 40.00 foot radius (centerline) curve; thence northeasterly along the southeasterly line of said 40.00' foot wide easement above described 60 feet more or less to true point of beginning, said easement is appurtenant to and for the Benefit of Parcel Seven. PARCEL TEN: A 10 foot wide easement for ingress and egress. The easterly line of said easement described as follows: Commencing at above station "L" and running S 15048'W 40.00 feet and N 74012' W 20.00 feet to the True Point of Beginning; thence S 15048' W 53.00 feet; thence southerly along a 263.00 foot radius curve to the left, having an interior angle of 17025'42" a distance of 80.00 feet to the terminus of said easement, said easement is appurtenant to and for the Benefit of Parcel Seven. PARCEL ELEVEN: An easement for ingress-egress said easement described as follows: Exhibit Page. Legal(exhiblt)(OS-07) Commencing at said station "O"~ and proceeding S 89035' W along the Southerly line of Parcel Two as shown on Parcel Map recorded in Book 494 of Maps at Page 43, Santa Oara County Records 20.64 feet to the True Point of Beginning; thence continuing S 89035' W 25.00 feet; thence N 37026' 15" E 30.68 feet to a point on the Southwesterly line of the 40 foot wide easement above described; thence S 14043' E 25.00 feet to the Point of Beginning, said easement is a ppurtenant to and for the Benefit of Parcel Seven. PARCEL TWELVE: A Portion of Parcels One and Four as shown on that Parcel Map recorded in Book 494 of Maps at Page 43, Santa Oara County, and a Portion of lands of Blocher, 1361 O.R. 202, Santa Clara County Records, described as follows: Beginning at a Point on the West Une of said Parcel four, said Point also being at the Northeastern most corner of Parcel Three as shown on said Parcel Map said Point also lying on the West line of lands of Nab Hill General Store, Inc., a California Corporation, as described in that Deed recorded in K805 of Official Records at page 1589, Santa Clara County, and proceeding along the Westerly, Southerly, Easterly and Northerly lines of said Parcel four and said lands of Nob Hill the following courses: COURSE NO. 1. S 0 deg. 03' 40" W 778.37 feet 2. East 70.00 feet 3. S 17 deg. 45' 49" E 294.02 feet 4. West 160.00 feet 5.50 deg, 03' 40" W 418.87 feet 6. S 0 deg. 13' 40" W 4094.58 feet 7. East 1254.00 feet 8. N 0 deg. 14' E 4527.60 feet 9. N 0 deg. 02' W 1672.30 feet 10. N 67 deg. 23' W 262.00 feet 11. N 49 deg. 20' 30" W 98.97 feet 12. N 31 deg. 26' W 154.34 feet 13. S 37 deg. 18' 09 W 85.48 feet 14. N 42 deg. 54' 55" W 294.28 feet 15. N 38 deg. 11' 51" W 55.00 feet 16. N 72 deg. 45' 58" W 83.84 feet 17. S 66 deg. 33' OS" W 57.31 feet 18. N 69 deg. 23' 35" W 301.68 feet to the Easternmost corner of those lands conveyed to the State of California by J627 of Official Records at page 1271, Santa Clara County; thence along the Southerly line of last said lands S 83 deg. 53' 57" W 44.13 feet; thence Northwesterly along a 1585 Foot radius curve to the right, from a tangent bearing N 82 deg. 52' 34" W., said curve having an interior angle of 18 deg. 50' 48", and a length of 521.36 feet to a point lying 91.84 feet Southerly along the said 1585 Foot radius curve from an angle point in last said Southerly line; thence 5 0 deg. 09' W 419.62 feet; thence S 17 deg. 14' 00" E 810.00 feet; thence 520 deg. 16' 11" W 194.80 feet to a point on the Northeasterly line of said Parcel Three, last said point being N 69 deg. 43' 49" W 288.41 feet from the Northeasterly comer of said Parcel Three; thence S 69 deg. 43' 49" E. 288.41 feet to the Point of Beginning. Excepting therefrom the the following described parcel of land: Beginning at the Northeastern most corner of said Parcel Four and proceeding 500 deg. 09' 33" E along the East line of said Parcel four, 269.81 feet to the Westerly terminus of the Northeast line of a Pedestrian/Equestrian Easement as shown on Parcel One on that Parcel Map recorded in Book 663 of Maps at Pages 13 and 14, Santa Clara County Records; thence N 30 deg. 15' W 412.10 feet more or less to a point on the Northeasterly line of said Parcel Four; thence S 67 deg. 23' E 224.09 feet along last said line to the Point of Beginning. exhibit Page - L.egal(exhJblt)(os-on Excepting therefrom all that portion lying Westerly of the Westerly line of said Parcel 4 , . And, in addition thereto; the following parcel of land designated as 'Transfer Parcellt on the accompanying plat entitled "Exhibit B", being more particularly described as follows: A portion of Parcel B, as said Parcel is described in that certain Certificate of Compliance for lot Line Adjustment filed for record as Document Number 14139227, Official Records of Santa Clara County, California, being more particularly described as follows: BEGINNING at southwesterly corner of said Parcel B, said point also being the southerly terminus of the course designated as S 00 02" E 1672.30 feet on that certain Lot Line Adjustment Parcel Map filed for record in Book 494 of Maps, at Page 43, Records of Santa Clara County, California, and the northwest corner of Lot 61, as said Lot 61 is shown on the map of Tract 9365, Eagle Ridge, filed for record in Book 748 of Maps, at Page 20, Records of Santa Clara County, California; thence running along the common line of said Parcel B and Parcel C 1.) N 000 09' 33" W, a distance of 1,402.67 feet to the northwesterly corner of said Parcel B; thence leaving said common line and running along the northerly line of said Parcel B 2.) 5 310 08' DO" E, a distance of 282.40 feet to the beginning of a curve to the left having a radius of 193.00 feet; thence continuing along said northerly line 3.) Southeasterly along said curve, through a central angle of 490 07' DO", a distance of 165.45 feet to the beginning of a compound curve to the left having a radius of 632.00 feet; thence continuing along said northerly line 4.) Easterly along said curve, through a central angle of 230 25' 00", a distance of 258.30 feet; thence continuing along said northerly line 5.) N 76020' 00" E, a distance of 499.27 feet to the beginning of a curve to the right having a radius of 1,360.00 feet; thence continuing along said northerly line 6.) Easterly along said curve, through a central angle of 130 40' 00"; a distance of 324.40 feet; thence continuing along said northerly line 7.) East, a distance of 88.59 feet to the beginning of a curve to the left having a radius of 65.00 feet; thence continuing along said northerly line 8.) Easterly along said curve, through a central angle of 040 37' 09"; a distance of 5.24 feet; thence continuing along said northerly line 9.) S 000 36' 00" E, a distance of 0.34 feet; thence continuing along said northerly line 10.) S 890 59' 56" E, a distance of 240.84 feet to the northeasterly comer of said Parcel B; thence leaving said northerly line and running along the easterly line of said Parcel B 11.) 5 00008' 00" E, a distance of 304.39 feet; thence leaving said easterly line 12.) S 870 59' 43" W, a distance of 330.76 feet; thence Exhibit Page - Legal(exhlblt)(08-07) . . 13.) N 890 02' 02" W, a distance of 222.92 feet; thence ; I 14.) S 840 51' 07" W, a distance of 357.84 feet; thence 15.) 5 760 21' 10" W, a distance of 402.59 feet; thence 16.) N 880 13' 32" W, a distance of 194.26 feeti thence 17.) N 630 29' 09" W, a distance of 72.82 feet; thence 18.) 5 210 41' 39" W, a distance of 190.51 feet; thence 19.) S 000 46' 42" E, a distance of 146.48 feet; thence 20.) S 090 19' 49" E, a distance of 120.58 feet; thence 21.) 5 020 29' 27" W, a distance of 36.13 feet; thence 22.) S 040 18' 56" W, a distance of 178.81 feet; thence 23.) S 000 07' 43" W, a distance of 178.08 feet to the southerly line of said Parcel B, also being the northerly line of said Lot 61 of Tract 9365; thence running along said southerly line of Parcel B and northerly line of Lot 61 24.) N 89" 52' 17" W, a distance of 48.11 feet to the POINT OF BEGINNING. Being Parcel C as described In the Certificate of Compliance Recorded May 2, 2005 as Instrument No. 18348300. APN 810-18-002; 810-19-005, 007,010,011, and 014 PARCEL THIRTEEN: An Easement for the purposes of Ingress and Egress and Utilities, as conveyed to Bonfante Gardens, Inc., a Delaware Non- Profit corporation by Grant Deed recorded April 28, 1999 as Instrument No. 14780039, and being more particularly described as follows: Beginning at a point on the East line of Parcel Four as shown upon that Parcel Map recorded in Book 494 of Maps at Page 43, Santa Oara County Records, said point being the Southwest comer of Parcel One as shown upon that Parcel Map recorded in Book 663 of Maps at Pages 13 and 14, Santa Oara County Records; thence Southerly along said East line of Parcel Four, 360.00 feet; thence S. 89 deg. 52' 17" E. 60.00 feet; thence Northerly 360.00 feet to a point on the South line of said Parcel One, last said point lying S. 89 deg. 52' 17" E. 60.00 feet from the point of beginning; thence N. 89 deg. 52' 17" W. 60.00 feet to the point of beginning. Exhlbit Page -legal(exhlbit)(08-07) RECORDING REQUESTED BY: Chicago Title Company . Escrow No.: 08-98702850-JW Locate No.: CAC1l7743-7743-2987-009B702850 Title No.: 08-98702850-KV When Recorded Mail Document To: Intermin City Administrator City of Gilroy 7351 Rosanna Street Gilroy, Califomal 95020 DOCUMENT: 19761544 ~lIlill ~I ~ 111\1 nil II II Pages: Fees Taxes Copies. AMT PAID 11.013 I 1 0e REGINA ALCOMENDRAS SANTA CLARA COUNTY RECORDER Recorded at the request of Chicago Title ROE 1* e 11 2/29/21308 I :30 PM APN: 783-05-011,012,013,810-17-014,015,021,024,025,026,029,810-18- 002,0 SPACE ABOVE THIS LINE FOR RECORDER'S USE FULL RECONVEYANCE Chicago Title Company as present trustee under that certain Deed of Trust dated December 1, 2000 executed by Bonfante Gardens, Inc. a Delaware Non-Profit Corporation as Trustor(s), and recorded as instrument no. 15523372 on January 11, 2001, Official Records, in the Office of the County Recorder of Santa Clara county, California, $ having been requested in writing by the holder of the obligations secured by said Deed of Trust to reconvey the estate granted to Trustee under said Deed of Trust, DOES HEREBY RECONVEY to the person or persons legally entitled thereto, without warranty, all the estate, title, and Interest acquired by Trustee under . eed of Trust. State of California County of Santa Clara ) ) net K. Wallace ~sst. Vice President Chicago Title Company DATED: February 27,2008 On February 28, 2008 before me, Sheri Davidson , Notary Public (here Insert name and title of the officer), personally appeared Janet K. Wallace . who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same In his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the Instrument. SHERI DAVIDSON ~ co MM. # 1762880 G) . NOTARY PUBLIC. CALIFORNIA (') SANTA CLARA COUNTY COMM. EXPIRES AUG. 21, 2011 -4 I certify under PENALTY OF PERJURY under the laws of the State of California that the for go; paragraph is true and correct. I y han Signatur {Seal} FULLRECONVEYANCE~ FD-236 (Rev 12/07) (fullrecn){12-07) EXHIBIT H INTANGIBLES ASSIGNMENT (See attached pages.) \TMORELL\734B64.15 011708-0470611 B -1- ASSIGNMENT OF INTANGIBLE PROPERTY This ?:GNMENT OF INTANGIBLE PROPERTY (this "Assignment") is executed as of A --,;l. , 2008 (the "Effective Date"), by GILROY GARDENS F AMIL Y THEME PARK, INC., a Delaware nonprofit corporation formerly known as "Bonfante Gardens, Inc." ("Assignor") for the benefit of CITY OF GILROY, a charter city and municipal corporation organized under the Constitution and laws of the State of California ("Purchaser"). WIT N E SSE T H: WHEREAS, Assignor is the owner of those certain tracts or parcels of real property located in the County of Santa Clara, State of California (the "Property") described on the attached Exhibit A. WHEREAS, Assignor, as "Seller," and Assignee, as "Purchaser" have previously entered into that certain Purchase and Sale Agreement dated as of January 22, 2007, as the same may have been amended (as amended, the "Purchase Agreement") providing for the sale of the Property to Assignee, subject to and on the terms thereof. WHEREAS, Assignor desires to assign to Assignee the below-referenced rights, title and interest of Assignor in and to tangible and intangible personal property related to the Property in accordance with the terms of this Assignment. NOW, THEREFORE, in consideration of the mutual covenants set forth in the Purchase Agreement and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, Assignor hereby sells, assigns, and transfers to Assignee all of Assignor's right, title and interest in and to all of the following intangible assets and rights of Seller relating directly to the Gilroy Gardens Park: all indemnities, claims, third-party guaranties and warranties, all reports, test results, appraisals, maps and surveys relating to the Property, trademarks, trade names, trade dress, and domain names. IN WITNESS WHEREOF, the parties have executed this Assignment to be effective as of the Effective Date above. [signatures on following pages] \TMORELL\750129.1 011708-04706118 SELLER: By: By PURCHASER: CITY OF GI~~~ ::l;f~ia By: \jJ ~\J~\\J- Name: Title: Anna 'Jat~ Interim "t A ATTEST: By: APPROVED AS TO FORM: By: /~'7 '. "" 6Le7 /7" L d' ~ L , Title: City Attorney ITMORELL\750129.1 011708-04706118 2 Exhibit A [Legal Description Attached] ITMORELL\750129.1 011708-04706118 Escrow No.: 07-98702516-JW Locate No.: CACTI7743-7743-2987-0098702516 Title No.: 07-98702516-KV EXHIBIT "An THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF GILROY, COUNTY OF SANTA CLARA, STATE OF CALIFORNIA, AND IS DESCRIBED AS FOLLOWS: PARCEL ONE: Beginning at the point of intersection of the Northeasterly line of Hecker Pass Highway, as said line was established by Parcel One in the Deed from the De Bell Corporation, a Corporation, to the State of California, dated June 12, 1957, recorded July 30,1957 in Book 3855 Official Records, Page 512, Santa Clara County Records, with the Easterly line of that certain 24.07 acre tract of land described in the Deed from Jack De Bell et ux, to Louis A. Filice, et ux, dated September 15, 1954 recorded October 19, 1954 in Book 2986 Official Records, Page 527, Santa Clara County Records; thence from said Point of Beginning South 60 deg 42' 34" East along said Northeasterly line of Hecker Pass Highway for a distance of 599.78 feet; thence Southeasterly continuing along said last mentioned line along an arc of a curve to the left, tangent to the preceding course, with a radius of 1450.00 feet, through a central angle of 14 deg 52' 00", for an arc distance of 376.24 feet to the point of intersection thereof with the Southeasterly prolongation of a Westerly line of that certain 3.728 acre tract of land described in that certain final order of condemnation entered on November 3, 1958 in the Superior Court of the State of California, in and for the County of Santa Clara in that certain action entitled, "The People of the State of California, Acting By and Through the Department of Public Works, Plaintiff, vs. Louis A. Felice et ai, Defendants Case No. 103483," a certified copy of which order was filed for record in the Office of the Recorder of the County of Santa Clara, State of California, on November 3, 1958 in Book 4219 Official Records, Page 701, Santa Clara County Records (shown as South 33 deg 16' 39" East 246.03 feet; thence North 33 deg 16' 30" West along said prolongation and the said Westerly line of the 3.728 acre tract for a distance of 376.66 feet to the Northwesterly corner of said 3.728 acre tract, said point also being the Southwesterly corner of that certain 1.567 acre tract of land described as Parcel Two in the Deed to said State of California above referred to; thence North 24 deg 18' 19" West along the Westerly line of said 1.567 acre tract for a distance of 94,17 feet, thence North 37 deg 18' 07" East continuing along said Westerly line of the 1.567 acre tract and its Northeasterly prolongation for a distance of 254,41 feet to the Northeasterly corner of that certain tract of land described in the Deed from the State of California, to the De Bell Corporation, a California Corporation, dated August 30, 1957, recorded September 27, 1957 in Book 3900 Official Records, Page 632, Santa Clara County Records; thence North 88 deg 39' 04" West along the Northerly line of land so described in the Deed to said De Bell Corporation for a distance of 433.45 feet to the Northwesterly corner thereof; thence South 1 deg 47' West along the Westerly line of land so described in the Deed to said De Bell Corporation for a distance of 64.46 feet to the Southwesterly corner thereof in the Northerly line of that certain 160.91 acre tract of land described as Parcel Three in the Deed from Jack De Bell et ux, to the De Bell Corporation, a California Corporation, dated October 26,1956, recorded April 29, 1957 in Book 3786 Official Records Page 463, Santa Clara County Records; thence North 88 deg 13' West along said Northerly line of the 160.91 acre tract for a distance of 291.56 feet to the Northeasterly corner of the said 24.07 acre tract above referred to; thence South 23 deg 11' West along the Easterly line of said 24.07 acre tract for a distance of 130 feet more or less to the Point of Beginning. Excepting from the above described Parcel One, the following described parcel of land: Beginning at the point of intersection of the Northeasterly line of Hecker Pass Road, as said line was established by Parcel 1 In the Deed from De Bell Corporation, a Corporation, to the State of California, dated June 12, 1957, recorded July 30, 1957 in Book 3855 Official Records, Page 512, Santa Clara County Records, with the Northwesterly line of that certain 160.91 acre tract of land described as Parcel Three in the Deed from Jack De Bell et ux, to the De Bell Corporation, a California Corporation, dated October 26, 1956, recorded April 29, 1957 in Book 3736 Official Records, Page 463, Santa Clara County Records; thence from said Point of Beginning South 60 deg 42' 34" East along said Northeasterly line of Hecker Pass Road, for a distance of 80.00 feet, thence leaving said last mentioned line and running North 29 deg 17' 26" East 170 feet, more or less, Exhibit Page - Legal( exhibit)(08-07) to the point of intersection thereof with the Southwesterly line of the Old Hecker Pass road; thence South 66 deg 15' East along said Southwesterly line of the Old Hecker Pass Road for a distance of 270.00 feet; thence leaving said last mentioned line and running North 23 deg 00' East 99.6 feet to the True Point of Beginning of the tract of land to be described; thence from said True Point of Beginning North 67 deg 00' West 10.00 feet; thence at right angles North 23 deg 00' East 20.00 feet; thence at right angles South 67 deg 00' East 20.00 feet; thence at right angles South 23 deg 00' West 20.00 feet; thence at right angles North 67 deg 00' West 10.00 feet to the True Point of Beginning. APN 783-05-011 AND 013 PARCEL TWO: Beginning at the point of intersection of the Northeasterly line of Hecker Pass Road, as said line was established by Parcell in the Deed from the De Bell Corporation, a Corporation, to the State of California, dated June 21, 1957, recorded July 30, 1957 in Book 3855 Official Records, Page 512, Santa Clara County Records, with the Northwesterly line of that certain 160.91 acre tract of land described as Parcel Three in the Deed from Jack De Bell, et UX, to the De Bell Corporation, a California Corporation, dated October 26, 1956, recorded April 29, 1957 in Book 3736 Official Records, Page 463, Santa Clara County Records; thence from said Point of Beginning South 60 deg 42' 34" East along said Southeasterly line of Hecker Pass Road for a distance of 80.00 feet, thence leaving said last mentioned line and running North 29 deg 17' 26" East 170 feet, more or less, to the point of intersection thereof with the Southwesterly line of the Old Hecker Pass Road; thence South 66 deg 15' East along said Southwesterly line of the Old Hecker Pass Road for a distance of 270.00 feet; thence leaving said last mentioned line and running North 23 deg 00' East 99.6 feet to the True Point of Beginning of the tract of land to be described; thence from said True Point of Beginning North 67 deg 00' West 10.00 feet; thence at right angles North 23 deg 00' East 20.00 feet; thence at right angles South 67 deg 00' East 20.00 feet; thence at right angles South 23 deg 00' West 20.00 feet; thence at right angles North 67 deg 00' West 10.00 feet to the True Point of Beginning. APN 783-05-012 PARCEL THREE: A Portion of Parcels One and Four as shown on that Parcel Map recorded in Book 494 of Maps at Page 43, Santa Clara County, and a Portion of Lands of Blocher, I 361 O.R. 202, Santa Clara County Records, described as follows: Beginning at a Point on the West Line of said Parcel four, said Point also being at the Northeastern most corner of Parcel Three as shown on said Parcel Map said Point also lying on the West line of Lands of Nab Hill General Store, Inc., a California Corporation, as described in that Deed recorded in K805 of Official Records at page 1589, Santa Clara County, and proceeding along the Westerly, Southerly, Easterly and Northerly lines of said Parcel four and said lands of Nab Hill the following courses: 1. S 0 deg. 03' 40" W 778.37 feet 2. East 70.00 feet 3. S 17 deg. 45' 49" E 294.02 feet 4. West 160.00 feet 5. SO deg. 03' 40" W 418.87 feet 6. S 0 deg. 13' 40" W 4094.58 feet 7. East 1254.00 feet 8. NO deg. 14' E 4527.60 feet 9. N 0 deg. 02' W 1672.30 feet 10. N 67 deg. 23' W 262.00 feet 11. N 49 deg. 20' 30" W 98.97 feet 12. N 31 deg. 26' W 154.34 feet 13. S 37 deg. 18' 09 W 85.48 feet 14. N 42 deg. 54' 55" W 294.28 feet 15. N 38 deg. 11' 51" W 55.00 feet 16. N 72 deg. 45' 58" W 83.84 feet 17. S 66 deg. 33' OS" W 57.31 feet 18. N 69 deg. 23' 35" W 301.68 feet Exhibit Page - Legal( exhibit)(08-07) to the Easternmost corner of those lands conveyed to the State of California by J627 of Official Records at page 1271, Santa Clara County; thence along the Southerly line of last said lands S 83 deg. 53' 57" W 44.13 feet; thence Northwesterly along a 1585 Foot radius curve to the right, from a tangent bearing N 82 deg. 52' 34" W., said curve having an interior angle of 18 deg. 50' 48", and a length of 521.36 feet to a point lying 91.84 feet Southerly along the said 1585 Foot radius curve from an angle point in last said Southerly line; thence S 0 deg. 09' W 419.62 feet; thence S 17 deg. 14' 00" E 810.00 feet; thence S 20 deg. 16' 11" W 194.80 feet to a point on the Northeasterly line of said Parcel Three, last said point being N 69 deg. 43' 49" W 288.41 feet from the Northeasterly corner of said Parcel Three; thence S 69 deg. 43' 49" E. 288.41 feet to the Point of Beginning. Excepting therefrom the following described parcel of land: Beginning at the Northeastern most corner of said Parcel Four and proceeding S 00 deg. 09' 33" E along the East line of said Parcel Four, 269.81 feet to the Westerly terminus of the Northeast line of a Pedestrian/Equestrian Easement as shown on Parcel One on that Parcel Map recorded in Book 663 of Maps at Pages 13 and 14, Santa Clara County Records; thence N 30 deg. 15' W 412.10 feet more or less to a point on the Northeasterly line of said Parcel Four; thence S 67 deg. 23' E 224.09 feet along last said line to the Point of Beginning. Also excepting therefrom "Parcel C" as described in that certain Certificate of Compliance recorded April 14, 1998 as Instrument No. 14139227, Official Records of Santa Clara County, and being more particularly described as follows: A portion of real property located in the County of Santa Clara, State of California, described as follows: All of Parcel Four as shown on that Parcel Map recorded in Book 494 of Maps at Page 43, Santa Clara County Records, Except therefrom the following: Beginning at the Northeasternmost corner of said Parcel Four and proceeding S 00009'33" E along the East line of said Parcel Four, 269.81 feet to the Westerly terminus of the Northeast line of a Pedestrian/Equestrian Easement as shown on Parcel One on that Parcel Map recorded in Book 663 of Maps at Pages 13 and 14, Santa Clara County Records; thence N 30015' W 412.10 feet more or less to a point on the Northeasterly line of said Parcel Four; thence S 67023' E. 224.09 feet along last said line to the point of beginning. APN 810-17-026, 810-17-029 PARCEL FOUR: A portion of Parcels Two and Three as shown on that Parcel Map recorded in Book 494 of Maps, at page 43, Santa Clara County Records, lying in Santa Clara County, California, described as follows: Beginning at a point on the South line of said Parcel Two, said point lying S 89 deg. 35' 00" W 145.44 feet from the Southeasterly angle point in said Parcel Two, last said angle point being produced by the courses S 17 deg. 40' 40" W 105.66 feet and S 89 deg. 35' 00" W 428.05 feet as shown on said Map; thence along the following courses: COURSE NO. 1. N 19 deg. 21' 40" E 417.99 feet 2. N 76 deg. 19' 19" W 13.90 feet 3. N 17 deg. 40' 40" E 1089.46 feet 4. N 64 deg. 27' 00" E 208.60 feet to a point on the Northeasterly line of said Parcel Two, said pOint lying N 69 deg. 43' 49" W 9.45 feet from the Northeastern corner of said Parcel Two; thence along the Northestern Line of said Parcels Two and Three and along the Easterly and Southerly line s of said Parcel Three the following courses: Exhibit Page - Legal( exhibit)(08-07) COURSE NO. 5. S 69 deg. 43' 49" E 689.53 feet 6. S. 0 deg. 03' 40" W 778.37 feet 7. East 70.00 feet 8. S 17 deg. 45' 49" W 294.02 feet 9. West 160.00 feet 10. S 0 deg. 03' 40" W 350.00 feet 11. N. 78 deg. 40' 00" W 1134.00 feet 12. S 17 deg. 40' 40" W 105.66 feet, and 13. S 89 deg. 35' 00" W 145.44 feet to the point of beginning. APN 810-17-014, 015, 021, 024 AND 025 PARCEL FIVE: A non-exclusive easement for Ingress and Egress and for the installation and maintenance of public utilities, appurtenant to the above described parcels, over a strip of land 60.00 feet in width, lying 10.00 feet Westerly of and 50.00 feet Easterly of the following described line: Beginning at a point in the Southwesterly line of the State Highway IV-SCI-32D-1957, distant thereon South 60 deg 14' 20" East 232.40 feet from a concrete monument at Station 325 57.01 E. C. of said Highway and running thence South 57 deg 45' 40" West 161.79 feet; South 41 deg 31' 40" West 262.30 feet; South 31 deg 44' 40" West 311.70 feet; South 3 deg 19' 10" West 344.34 feet; South 23 deg 29' 50" East 166.48 feet; thence Southwesterly 150 feet, more or less, to a point which bears South 71 deg 14' 02" East 94.02 feet and North 19 deg 29' 13" East 110.0 feet from the most Easterly corner of Parcell, as said Parcel is shown upon that certain Map entitled, "Record of Survey being a portion of the solis Rancho", which Map was filed for record in the Office of the Recorder of the County of Santa Clara, State of California on December 7, 1967 in Book 231 of Maps, at Page 22; thence South 19 deg 29' 13" West 110.00 feet and the terminus of said easement, said easement is appurtenant to and for the Benefit of Parcels Three, Four, Seven and Twelve. PARCEL SIX: A non-exclusive easement for Ingress and Egress and for the installation and maintenance of public utilities and for water pipe lines, appurtenant to the above described parcels, over an existing roadway 60.00 feet in width, the center line of which is described as follows: Beginning at the point of intersection of the Easterly line of that certain 160.91 acre tract of land described as Parcel Three in the Deed from Jack De Bell, et ux, to the De Bell Corporation, dated October 26, 1956, recorded April 29, 1957 in Book 3786 Official Records, page 463, Santa Clara County Records, with the Southwesterly line of Hecker Pass Road, as said line was established by Parcel One in the Deed from the De Bell Corporation, to the State of California dated June 12, 1957, recorded July 30, 1957 in Book 3655 Official Records, page 512, Santa Clara County Records; thence from said point of beginning South o deg OS' 19" West along said Easterly line of the 160.91 acre tract for a distance of 1370.09 feet to the True Point of Beginning of the easement to be described; thence from said True Point of Beginning North 69 deg. 43' 49" West 1460.17 feet to the terminus of said easement, said easement is appurtenant to and for the Benefit of Parcels Three, Four and Twelve. Excepting therefrom all that portion thereof lying within the above described Parcels Three and Four. Exhibit Page - Legal( exhibit)(08-07) PARCEL SEVEN: All of Parcel Two, as shown upon that certain Map entitled, "Parcel Map, being a portion of the Las Animas Rancho", which Map was filed for record in the Office of the Recorder of the County of Santa Clara, State of California on October 12, 1993 in Book 650 of Maps, at Page 49. APN 810-18-010 and 011 PARCEL EIGHT: An easement 40 feet in width for ingress and egress and public utilities the centerline of said easement described as follows: Commencing at a point in the centerline of that 60 foot wide easement recorded in Book 7981 of Official Records at Page 56, Santa Clara County Records, said point being the northeast terminius of that course shown as No. 16 on that Parcel Map recorded in Book 494 of Maps, at Page 43, Santa Clara County Records and proceeding 520016'11" W 30.00 feet to a point on the southwesterly line of said easement to the Point of Beginning; thence from said Point of Beginning 5 27003' W 28.19 feet to station "A"; thence along a curve to the right with a radius of 40 feet at an angle of 60.00 feet for a distance of 41.89 feet to station "B"; thence 5 87003' W 28.00 feet to station C; thence along a curve to the left with a radius of 85.47 feet at an angle of 70033'08" for a distance of 105.24 feet to station "D"; thence 5 16029'52"W for a distance of 224.83 feet to station "E"; thence on a curve to the left with a radius of 457.22 feet at an angle of 18037'52" for a distance of 148.68 feet to station "F"; thence 5 2008' E for a distance of 32.29 feet to station "G"; thence on a curve to the right with a radius of 196.58 feet at an angle of 41046' for a distance of 143.30 feet to station "H"; thence 5 39038' W for a distance of 151.72 feet to station "I"; thence on a curve to the left with a radius of 250.00 feet at an angle of 45.000 for a distance of 196.34 feet to station "J"; thence 5 5022' E 110.00 feet to station "K"; thence on a curve to the right with a radius of 414.00 feet at an angle of 21010' for a distance of 152.94 feet to station "L"; thence 5 15048' W 93.00 feet to station "M"; thence on a curve to the left with a radius of 243.00 feet at an angle of 30031' for a distance of 129.42 feet to station "N"; thence 5 14043' E 456.60 feet more or less to a point on the south line of parcel two of said parcel map, last said point being 152.52 feet westerly from the southerly terminus of that course, (50025'00" E 89.33 feet), as shown on said parcel map, to station "0", said easement is appurtenant to and for the Benefit of Parcel Seven. PARCEL NINE: An easement for ingress and egress described as follows: Beginning at the point of beginning of the above described 40 foot wide easement and running 5 69043'49" E 20.00 feet to the easterly line of said 40.00 foot wide easement being the true point of beginning; thence 5 69043'49" E along the southwesterly line of the 60.00 foot easement (7981-or-56) 30 feet; thence 80 feet more or less southwesterly to the mid point (on the southeast line of above described 40 foot easement) of the 40.00 foot radius (centerline) curve; thence northeasterly along the southeasterly line of said 40.00' foot wide easement above described 60 feet more or less to true point of beginning, said easement is appurtenant to and for the Benefit of Parcel Seven. PARCEL TEN: A 10 foot wide easement for ingress and egress. The easterly line of said easement described as follows: Commencing at above station "L" and running 5 15048'W 40.00 feet and N 74012' W 20.00 feet to the True Point of Beginning; thence 5 15048' W 53.00 feet; thence southerly along a 263.00 foot radius curve to the left, having an interior angle of 17025'42" a distance of 80.00 feet to the terminus of said easement, said easement is appurtenant to and for the Exhibit Page - Legal( exhibit)(OB-07) .Jenefit of Parcel Seven. PARCEL ELEVEN: An easement for ingress-egress said easement described as follows: Commencing at said station "0", and proceeding S 89035' W along the Southerly line of Parcel Two as shown on Parcel Map recorded in Book 494 of Maps at Page 43, Santa Clara County Records 20.64 feet to the True Point of Beginning; thence continuing S 89035' W 25.00 feet; thence N 37026'15" E 30.68 feet to a point on the Southwesterly line of the 40 foot wide easement above described; thence S 14043' E 25.00 feet to the Point of Beginning, said easement is appurtenant to and for the Benefit of Parcel Seven. PARCEL TWELVE: A Portion of Parcels One and Four as shown on that Parcel Map recorded in Book 494 of Maps at Page 43, Santa Clara County, and a Portion of Lands of Blocher, 1361 O.R. 202, Santa Clara County Records, described as follows: Beginning at a Point on the West Line of said Parcel four, said Point also being at the Northeastern most corner of Parcel Three as shown on said Parcel Map said Point also lying on the West line of Lands of Nab Hill General Store, Inc., a California Corporation, as described in that Deed recorded in K805 of Official Records at page 1589, Santa Clara County, and proceeding along the Westerly, Southerly, Easterly and Northerly lines of said Parcel four and said lands of Nob Hill the following courses: COURSE NO. 1. S 0 deg. 03' 40" W 778.37 feet 2. East 70.00 feet 3. S 17 deg. 45' 49" E 294.02 feet 4. West 160.00 feet 5. SO deg. 03' 40" W 418.87 feet 6. S 0 deg. 13' 40" W 4094.58 feet 7. East 1254.00 feet 8. N 0 deg. 14' E 4527.60 feet 9. N 0 deg. 02' W 1672.30 feet 10. N 67 deg. 23' W 262.00 feet 11. N 49 deg. 20' 30" W 98.97 feet 12. N 31 deg. 26' W 154.34 feet 13. S 37 deg. 18' 09 W 85.48 feet 14. N 42 deg. 54' 55" W 294.28 feet 15. N 38 deg. 11' 51" W 55.00 feet 16. N 72 deg. 45' 58" W 83.84 feet 17. S 66 deg. 33' 05" W 57.31 feet 18. N 69 deg. 23' 35" W 301.68 feet to the Easternmost corner of those lands conveyed to the State of California by J627 of Official Records at page 1271, Santa Clara County; thence along the Southerly line of last said lands S 83 deg. 53' 57" W 44.13 feet; thence Northwesterly along a 1585 Foot radius curve to the right, from a tangent bearing N 82 deg. 52' 34" W., said curve having an interior angle of 18 deg. 50' 48", and a length of 521.36 feet to a point lying 91.84 feet Southerly along the said 1585 Foot radius curve from an angle point in last said Southerly line; thence S 0 deg. 09' W 419.62 feet; thence S 17 deg. 14' 00" E 810.00 feet; thence S 20 deg. 16' 11" W 194.80 feet to a point on the Northeasterly line of said Parcel Three, last said point being N 69 deg. 43' 49" W 288.41 feet from the Northeasterly corner of said Parcel Three; thence S 69 deg. 43' 49" E. 288.41 feet to the Point of Beginning. Exhibit Page - Legal(exhibit)(08-07) Excepting therefrom the the following described parcel of land: Beginning at the Northeastern most corner of said Parcel Four and proceeding S 00 deg. 09' 33" E along the East line of said Parcel Four, 269.81 feet to the Westerly terminus of the Northeast line of a Pedestrian/Equestrian Easement as shown on Parcel One on that Parcel Map recorded in Book 663 of Maps at Pages 13 and 14, Santa Clara County Records; thence N 30 deg. 15' W 412.10 feet more or less to a point on the Northeasterly line of said Parcel Four; thence S 67 deg. 23' E 224.09 feet along last said line to the Point of Beginning. Excepting therefrom all that portion lying Westerly of the Westerly line of said Parcel 4 And, in addition thereto, the following parcel of land designated as "Transfer Parcel" on the accompanying plat entitled "Exhibit B", being more particularly described as follows: A portion of Parcel S, as said Parcel is described in that certain Certificate of Compliance for Lot Line Adjustment filed for record as Document Number 14139227, Official Records of Santa Clara County, California, being more particularly described as follows: BEGINNING at southwesterly corner of said Parcel S, said point also being the southerly terminus of the course designated as S 00 02" E 1672.30 feet on that certain Lot Line Adjustment Parcel Map filed for record in Book 494 of Maps, at Page 43, Records of Santa Clara County, California, and the northwest corner of Lot 61, as said Lot 61 is shown on the map of Tract 9365, Eagle Ridge, filed for record in Book 748 of Maps, at Page 20, Records of Santa Clara County, California; thence running along the common line of said Parcel B and Parcel C 1.) N 000 09' 33" W, a distance of 1,402.67 feet to the northwesterly corner of said Parcel B; thence leaving said common line and running along the northerly line of said Parcel B 2.) S 31008' 00" E, a distance of 282.40 feet to the beginning of a curve to the left having a radius of 193.00 feet; thence continuing along said northerly line 3.) Southeasterly along said curve, through a central angle of 49007' 00", a distance of 165.45 feet to the beginning of a compound curve to the left having a radius of 632.00 feet; thence continuing along said northerly line 4.) Easterly along said curve, through a central angle of 23025' 00", a distance of 258.30 feet; thence continuing along said northerly line 5.) N 76020' 00" E, a distance of 499.27 feet to the beginning of a curve to the right having a radius of 1,360.00 feet; thence continuing along said northerly line 6.) Easterly along said curve, through a central angle of 130 40' 00"; a distance of 324.40 feet; thence continuing along said northerly line 7.) East, a distance of 88.59 feet to the beginning of a curve to the left having a radius of 65.00 feet; thence continuing along said northerly line 8.) Easterly along said curve, through a central angle of 040 37' 09"; a distance of 5.24 feet; thence continuing along said northerly line 9.) S 000 36' 00" E, a distance of 0.34 feet; thence continuing along said northerly line Exhibit Page - Legal(exhibit)(08-07) 10.) 5890 59' 56" E, a distance of 240.84 feet to the northeasterly corner of said Parcel B; thence leaving said northerly line and running along the easterly line of said Parcel B 11.) 500008' 00" E, a distance of 304.39 feet; thence leaving said easterly line 12.) 5 870 59' 43" W, a distance of 330.76 feet; thence 13.) N 890 02' 02" W, a distance of 222.92 feet; thence 14.) 5 840 51' 07" W, a distance of 357.84 feet; thence 15.) 576021' 10" W, a distance of 402.59 feet; thence 16.) N 880 13' 32" W, a distance of 194.26 feet; thence 17.) N 630 29' 09" W, a distance of 72.82 feet; thence 18.) 5 210 41' 39" W, a distance of 190.51 feet; thence 19.) 5 000 46' 42" E, a distance of 146.48 feet; thence 20.) 5090 19' 49" E, a distance of 120.58 feet; thence 21.) 5 02029' 27" W, a distance of 36.13 feet; thence 22.) 5040 18' 56" W, a distance of 178.81 feet; thence 23.) 5 000 01' 43" W, a distance of 178.08 feet to the southerly line of said Parcel B, also being the northerly line of said Lot 61 of Tract 9365; thence running along said southerly line of Parcel B and northerly line of Lot 61 24.) N 89" 52' 17" W, a distance of 48.11 feet to the POINT OF BEGINNING. Being Parcel C as described in the Certificate of Compliance Recorded May 2, 2005 as Instrument No. 18348300. APN 810-18-002; 810-19-005,007,010,011, and 014 PARCEL THIRTEEN: An Easement for the purposes of Ingress and Egress and Utilities, as conveyed to Bonfante Gardens, Inc., a Delaware Non- Profit corporation by Grant Deed recorded April 28, 1999 as Instrument No. 14780039, and being more particularly described as follows: Beginning at a point on the East line of Parcel Four as shown upon that Parcel Map recorded in Book 494 of Maps at Page 43, Exhibit Page - Legal(exhibit)(08-07) Santa Clara County Records, said point being the Southwest corner of Parcel One as shown upon that Parcel Map recorded in Book 663 of Maps at Pages 13 and 14, Santa Clara County Records; thence Southerly alond said East line of Parcel Four, 360.00 feet; thence S. 89 deg. 52' 17" E. 60.00 feet; thence Northerly 360.00 feet to a point on the South line of said Parcel One, last said point lying S. 89 deg. 52' 17" E. 60.00 feet from the point of beginning; thence N. 89 deg. 52' 17" W. 60.00 feet to the point of beginning. Exhibit Page - Legal(exhibit)(08-07) EXHIBIT I AMENDED BYLAWS (See attached pages.) \ TMORELL\734864.15 011708-0470611 B -1- AMENDED BYLAWS OF GILROY GARDENS FAMILY THEME PARK, INC. (a Delaware Nonprofit Public Benefit Corporation) ARTICLE I PRINCIPAL OFFICE Section 1. Principal Office. The principal office for the transaction of the activities and affairs of the corporation ("principal office") shall be located in Santa Clara County, California. The board or directors (the "Board") may change the principal office from one location to another. Section 2. Other Offices. The Board may at any time establish branch or subordinate offices at any place or places where the corporation is qualified to conduct its activities. ARTICLE II MEMBERSHIP This corporation shall have no members. ARTICLE III PURPOSES AND LIMITATIONS Section 1. General Purposes. This corporation is organized exclusively for charitable, scientific and educational purposes within the meaning of Section 501 (c )(3) of the Internal Revenue Code of 1986 (the "Code") or the corresponding provision of any future United States internal revenue law. Notwithstanding any other provision of these articles, this corporation shall not, except to an insubstantial degree, engage in any activities or exercise any powers that are not in furtherance of the purposes of this corporation, and the corporation shall not carryon any other activities not permitted to be carried on (a) by a corporation exempt from federal income tax under Section 501(c)(3) of the Code or the corresponding provision of any future United States internal revenue law, or (b) by a corporation, contributions to which are deductible under Section 170( c )(2) of the Code or the corresponding provision of any future United States internal revenue law. This corporation is a nonprofit public benefit corporation and is not organized for the private gain of any person. It is organized under the General Corporation Law of the State of Delaware for charitable purposes. No substantial part of the activities of this corporation shall consist of lobbying or propaganda, or otherwise attempting to influence legislation, except as provided in section 501(h) of the Code, and this corporation shall not participate in or intervene in (including publishing or distributing statements) any political campaign on behalf of or in opposition to any candidate for public office. Section 2. Specific Purposes. Within the context of the general purposes stated above, this corporation shall support the City of Gilroy located in the State of California, which is a domestic municipal government entity and thus an exempt organization under Section 509(a)(I) of the Code as described in Section 170(b)(l)(A)(v) of the Code. In support of the parks and recreational activities of the City of Gilroy and for the benefit of such City and members of its community, the primary mission and purpose of the Corporation is to create, maintain, and operate for charitable purposes a park, where families can share in educational and recreational activities that will foster a greater appreciation of the natural world and man's ability to shape it. Section 3. Limitations. There are no limitations other than those appearing in the articles of incorporation. ARTICLE IV BOARD OF DIRECTORS Section 1. Powers. A. General Powers. This corporation shall have powers to the full extent allowed by law. All powers and activities of this corporation shall be exercised and managed by the Board of this corporation directly or, if delegated, under the ultimate direction of the Board. The Board of Directors of the Corporation shall, through the President, supervise, manage and control all the affairs, business activities and policies of the Corporation. B. Specific Powers. Without prejudice to the general powers set forth in Article IV, Section 1.A of these Bylaws, but subject to the same limitations, the directors shall have the power to: (i) Appoint and remove, at the pleasure of the Board, all the corporation's officers, agents, and employees; prescribe powers and duties for them that are consistent with law, with the articles of incorporation, and with these bylaws; and fix their compensation and require from them security for faithful performance of their duties. (ii) Change the principal office or the principal business office in California from one location to another; cause the corporation to be qualified to conduct its activities in any other state, territory, dependency, or country and conduct its activities within or outside California; and designate any place within or outside California for holding any meeting of members. (iii) Adopt and use a corporate seal; 2. (iv) Borrow money and incur indebtedness on behalf of the corporation and cause to be executed and delivered for the corporation's purposes, in the corporate name, promissory notes, bonds, debentures, deeds of trust, mortgages, pledges, hypothecations and other evidences of debt and securities. Section 2. Number of Directors. The number of directors shall be not less than seven (7) nor more than fifteen (15), with the exact number of authorized directors to be fixed from time to time by unanimous resolution of the Board; provided, however, that the initial number of directors shall be seven (7). Section 3. Class and Qualification of Directors. There shall be two (2) classes of directors of this corporation, known as (i) the Gilroy City Council Class (the "Council Director"), and (ii) the Community Class (the "Community Directors"), respectively. A. The Council Director. 1. Appointments by the City Council. The Council Director shall be a member of the Gilroy City Council as designated by the Gilroy City Council, so long as it is exempt from taxation under the Code and is classified as a governmental unit and thus an exempt organization under Section 509(a)(1) of the Code as described in Section I70(b)(I)(A)(v) of the Code. Initially, there shall be one (1) Council Director. 2. Successor Appointees. Each City Council Director shall serve at the pleasure of the members of the Gilroy City Council. Upon completion of the term of office or upon the death, resignation, or removal of a Council Director, the Gilroy City Council shall appoint a successor director by notifying the Secretary of this Corporation in writing. B. The Community Directors. 1. Authorized Number and Qualification. Initially, there shall be six (6) Community Directors. 2. Term. Each Community Director shall serve for a term of two (2) years, or until his or her successor is designated. It is intended that the term of office of three (3) of the six (6) Community Directors shall expire each year. 3. Removal. Any Community Director may be removed, with or without cause, by 2/3 vote of the members of the entire Board at a special meeting called for that purpose, or at a regular meeting, provided notice of that meeting and of the removal questions are given as provided in Section 11 hereof. 4. Appointment of Community Directors (i) 90 days prior to the expiration of their term, any director wishing re-appointment shall notify the board of such intent. 3. (ii) On or before December 15, the board members whose terms are not expiring shall vote on whether or not to reconfirm interested board members. (iii) For any open board positions, the President shall appoint a committee of no less than 2 members whose job it shall be to publicize and recruit candidates for the open board positions. (iv) board no later than February 15. A slate of candidates shall be presented to the (v) Final appointment will be by majority vote of the board members with unexpired terms. Section 4. Term of Office of Directors. Except as otherwise provided herein, each director shall serve for a term of two (2) years, or until his or her successor is designated. Section 5. Vacancies. A vacancy shall be deemed to exist on the Board in the event that the actual number of directors is less than the authorized number for any reason. A vacancy of the Council Director may be filled by, and only by, the Gilroy City Council for the unexpired portion of the term. Vacancies for the Community Directors shall be filled by election of 2/3 vote of the remaining Directors. Section 6. Resignation and Removal. Resignations shall be effective upon receipt in writing by the Secretary of this corporation, unless a later effective date is specified in the resignation. Only the Gilroy City Council may remove a Council Director. A Community Director may be removed in accordance with the provisions of Article IV, Section 3.B.3 above. Section 7. Annual Meetings. A meeting of the Board shall be held at least once a year. Annual meetings shall be called by the President (or Chairman of the Board) or any two directors, and noticed in accordance with Section 11. Section 8. Special Meetings. Special meetings of the Board may be called by the President (or Chairman of the Board), or any two directors, or singularly by the Council Director, and noticed in accordance with Section 11. Section 9. Notice. Notice of the annual meeting and any special meetings of the Board shall be given to each director at least five (5) business days before any such meeting if given by first-class mail or two (2) business days before any such meeting if given personally or by telephone, telegraph, facsimile transmission, or other usual and customary communication, and shall state the date, place, and time of the meeting. Section 10. Waiver of Notice. The transactions of any meeting of the Board, however called and noticed and wherever held, shall be valid as though taken at a meeting duly held after proper call and notice, if a quorum is present, and if, either before or after the meeting, each of the directors not present signs a written waiver of notice, a consent to holding the meeting, or an approval of the minutes. The waiver of notice or 4. consent need not specify the purpose of the meeting. All waivers, consents and approvals shall be filed with the corporate records or made a part of the minutes of the meeting. Notice of a meeting shall also be deemed given to any director who attends the meeting without protesting the lack of adequate notice before the meeting or at its commencement. Section 11. Quorum. Except to adjourn, a majority of the authorized number of directors shall constitute a quorum for the transaction of business. Every action taken or decision made by a majority of the directors present at a duly held meeting at which a quorum is present shall be the act of the Board, except as otherwise provided in these Bylaws and the California Nonprofit Public Benefit Corporation Law. A meeting at which a quorum is initially present may continue to transact business, despite the withdrawal of directors, if any action taken or decision made is approved by at least a majority of the required quorum for that meeting. Section 12. Action Without a Meeting. Any action required or permitted to be taken by the Board may be taken without a meeting if all members of the Board shall individually or collectively consent to such action. Such written consents shall be filed with the minutes of the proceedings of the Board. Such written consents shall have the same force and effect as the unanimous vote of such directors. Section 13. Telephone Meetings. Directors may participate in a meeting through use of conference telephones or similar communications equipment so long as all directors participating in such meeting can hear one another. Participation in a meeting pursuant to this Section constitutes presence in person at such meeting. Section 14. Confidentiality. No director may, without the express written consent of the President (or the Chairman of the Board) divulge to others any information not already known to the public pertinent to the services, clients, customers or operations of the corporation, whether before or after the corporation's dissolution, provided that the Council Director may divulge such information to the City of Gilroy in connection with his or her duties and obligations as a City Council member under applicable law or otherwise and, in that event, the treatment of the information by the City Council shall be governed by the standards applicable to the City Council, and not pursuant to any limitation or covenant of these Bylaws. The foregoing sentence shall not apply to any director during such time as he or she is acting as President or Chairman of the Board. Section 15. Standard of Care. A. General. A director shall perform the duties of a director, including duties as a member of any Board Committee on which the director may serve, in good faith, in a manner such director believes to be in the best interest of this corporation and with such care, including reasonable inquiry, as an ordinarily prudent person in a like situation would use under similar circumstances. In performing the duties of a director, a director shall be entitled to rely on information, opinions, reports, or statements, including financial statements and other financial data, in each case prepared or presented by: 5. (i) one or more officers or employees of this corporation whom the director believes to be reliable and competent as to the matters presented; (ii) counsel, independent accountants, or other persons as to matters which the director believes to be within such person's professional or expert competence; or (iii) a Board Committee upon which the director does not serve, as to matters within its designated authority, provided that the director believes such Committee merits confidence; so long as in any such case, the director acts in good faith after reasonable inquiry when the need therefor is indicated by the circumstances and without knowledge that would cause such reliance to be unwarranted. A person who performs the duties of a director in accordance with this Section shall have no liability based upon any failure or alleged failure to discharge that person's obligations as a director, including, without limiting the generality of the foregoing, any actions or omissions which exceed or defeat a public or charitable purpose to which a corporation, or assets held by it, are dedicated. B. Investments. Except with respect to assets held for use or used directly in carrying out this corporation's charitable activities, in investing, reinvesting, purchasing or acquiring, exchanging, selling, and managing this corporation's investments, the Board shall avoid speculation, looking instead to the permanent disposition of the funds, considering the probable income of such investments as well as the probable safety of this corporation's capital. No investment violates this Section where it conforms to provisions authorizing such investment contained in an instrument or agreement pursuant to which the assets were contributed to this corporation. Section 16. Inspection. Every director shall have the absolute right at any reasonable time to inspect and copy all books, records, and documents, and to inspect the physical properties of this corporation. Section 17. Compensation and Reimbursement. Directors and members of Committees shall not be compensated for their services as directors or officers. However, directors shall be entitled to any out-of-pocket expenses reasonably incurred in connection with their duties as a director, as the Board may determine by resolution to be just and reasonable. ARTICLE V COMMITTEES Section 1. Board Committees. The Board may, by resolution adopted by a majority of the directors then in office, create any number of Board Committees, each 6. consisting of two or more directors, to serve at the pleasure of the Board. Appointments to any Board Committee shall be made by any method determined by a majority vote of the directors then in office. Board Committees may be given all the authority of the Board, except for the powers to: (a) set the number of directors within a range specified in these Bylaws; (b) elect directors or remove directors without cause; ( c) fill vacancies on the Board or on any Board Committee; (d) fix compensation of directors for serving on the Board or Board Committee; (e) amend or repeal these Bylaws or adopt new Bylaws; (f) adopt amendments to the Certificate oflncorporation of this corporation; (g) amend or repeal any resolution of the Board which by its express terms is not so amendable or repealable; (h) create any other Board Committees or appoint the members of any Board Committees; or (i) approve any merger, reorganization, voluntary dissolution, or disposition of substantially all of the assets of this corporation. Where it is not reasonably practicable to obtain approval of the Board before entering into a self-dealing transaction, a Board Committee may approve such transaction in a manner consistent with the requirements of Section 3 of Article VII of these Bylaws and at its next meeting, the full Board shall be apprised of the approval of a self-dealing transaction by a committee and of the procedure the committee followed. Section 2. Advisory Committees. The Board may establish one or more Advisory Committees to the Board. The members of any Advisory Committee may consist of directors or non-directors and may be appointed as the Board determines. Section 3. Meetings. A. Of Board Committees. Meetings and actions of Board Committees shall be governed by and held and taken in accordance with the provisions of Article IV of these Bylaws concerning meetings and actions of the Board, with such changes in the content of those Bylaws as are necessary to substitute the Board and its members. Minutes shall be kept of each meeting of any Board Committee and shall be filed with the corporate records. B. Of Advisorv Committees. Advisory Committees shall determine their own meeting rules and whether minutes shall be kept. 7. The Board may adopt rules for the governance of any Board or Advisory Committee not inconsistent with the provisions of these Bylaws. ARTICLE VI OFFICERS Section 1. Officers. The officers of the corporation shall be a President, a Secretary, and a Treasurer. The corporation may also have, at the discretion of the directors, a Chairman of the Board, and such other officers as may be appointed in accordance with these Bylaws. Any number of offices may be held by the same person, except that neither the Secretary nor the Treasurer may serve concurrently as either the President or the Chairman of the Board, if any. Section 2. Election of Officers. The officers of the corporation shall be chosen annually by the Board and shall serve at the pleasure of the Board, subject to the rights, if any, of any officer under any contract of employment. Section 3. Other Officers. The Board may appoint and may authorize the Chairman of the Board, the President, or other officer, to appoint any other officers that the corporation may require. Each officer so appointed shall have the title, hold office for the period, have the authority, and perform the duties specified in the Bylaws or determined by the Board. Section 4. Removal of Officers. Without prejudice to any rights of an officer under any contract of employment, any officer may be removed with or without cause by the Board and also, if the officer was not chosen by the Board, by any officer on whom the Board may confer that power of removal. Section 5. Resignation of Officers. Any officer may resign at any time by giving written notice to the corporation. The resignation shall take effect as of the date the notice is received or at any later time specified in the notice and, with the approval of the President, unless otherwise specified in the notice, the resignation need not be accepted to be effective. Any resignation shall be without prejudice to the rights, if any, of the corporation under any contract to which the officer is a party. Section 6. Vacancies in Office. A vacancy in any office because of death, resignation, removal, disqualification, or any other cause shall be filled in the manner prescribed in these Bylaws for regular appointments to that office, provided, however, that vacancies need not be filled on an annual basis. Section 7. Responsibilities of Officers. A. Chairman of the Board. If a Chairman of the Board is elected, he or she shall preside at meetings of the Board and shall exercise and perform such other powers and duties as the Board may assign from time to time. If there is no President, 8. the Chairman of the Board shall also be the chief executive officer and shall have the powers and duties of the President of the corporation prescribed by these Bylaws. B. President. In the absence of the Chairman of the Board, or if there is none, the President shall preside at all Board meetings. The President shall have such other powers and duties as the Board or the Bylaws may prescribe. C. Secretary. I. Book of Minutes. The Secretary shall keep or cause to be kept, at the corporation's principal office or such other place as the Board may direct, a book of minutes of all meetings, proceedings, and actions of the Board, of committees of the Board. The minutes of meetings shall include the time and place that the meeting was held, whether the meeting was annual, regular, or special, and, if special, how authorized, the notice given, the names of those present at Board and committee meetings, and the number of members present or represented at members' meetings. The Secretary shall keep or cause to be kept, at the principal office in California, a copy of the Certificate of Incorporation and Bylaws, as amended to date. 2. Notices, Seal, and Other Duties. The Secretary shall give, or cause to be given, notice of all meetings of the Board and of Committees required by these Bylaws to be given. The Secretary shall keep the corporate seal in safe custody and shall have such other powers and perform such other duties as the Board or the By laws may prescribe. D. Treasurer I. Books of Account. The Treasurer shall keep and maintain, or cause to be kept and maintained, adequate and correct books and accounts of the corporation's properties and transactions. The Treasurer shall send or cause to be given to the directors such financial statements and reports as are required to be given by law, by these Bylaws, or by the Board. The books of account shall be open to inspection by any director at all reasonable times. 2. Deposit and Disbursement of Money and Valuables. The Treasurer shall deposit, or cause to be deposited, all money and other valuables in the name and to the credit of the corporation with such depositories as the Board may designate, shall disburse the corporation's funds as the Board may order, shall render to the President, Chairman of the Board, if any, and the Board, when requested, an account of all transactions as Treasurer and of the financial condition of the corporation, and shall have such other powers and perform such other duties as the Board or the Bylaws may prescribe. 3. Bond. If required by the Board, the Treasurer shall give the corporation a bond in the amount and with the surety or sureties specified by the Board for faithful performance of the duties of the office and for restoration to the corporation of all of its books, papers, vouchers, money, and other property of every kind in the 9. possession or under the control of the Treasurer on his or her death, resignation, retirement, or removal from office. ARTICLE VII PROHIBITED TRANSACTIONS Section 1. Loans. Without the approval of the Attorney General of California, this corporation shall not make any loan of money or property to, or guarantee the obligation of, any director or officer; provided, however, that this corporation may advance money to a director or officer of this corporation or any subsidiary for expenses reasonably anticipated to be incurred in performance of the duties of such director or officer so long as such individual would be entitled to be reimbursed for such expenses absent that advance. Section 2. Self-Dealing Transactions. Except as provided in Section 3 below, the Board shall not approve, or permit the corporation to engage in, any self-dealing transaction. A self-dealing transaction is a transaction to which this corporation is a party and in which one or more of its directors or any Disqualified Person as defined in S4958(f) of the Code, has a material financial interest. Section 3. Approval. This corporation may engage in a self-dealing transaction if the transaction is approved by a court or by the Attorney General. This corporation may also engage in a self-dealing transaction if the Board determines, before the transaction, that (a) this corporation is entering into the transaction for its own benefit; (b) the transaction is fair and reasonable to this corporation at the time; and (c) after reasonable investigation, the Board determines that it could not have obtained a more advantageous arrangement with reasonable effort under the circumstances. Such determinations must be made by the Board in good faith, with knowledge of the material facts concerning the transaction and the director's interest in the transaction, and by a vote of a majority of the directors then in office, without counting the vote of the interested director or directors. Any interested director shall be required to recuse himself or herself from the deliberations of the Board, except to the extent necessary to answer any questions posed by the Board. ARTICLE VIII INDEMNIFICATION AND INSURANCE Section 1. Right ofIndemnity. To the fullest extent allowed by the Delaware General Corporation Law, Section 5238 of the California Nonprofit Public Benefit Corporation Law and Section 4958 of the Code, this corporation shall indemnify and advance expenses to its agents, in connection with any proceeding, and in accordance with Section 5238. For purposes of this Article, "agent" shall have the same meaning as in Section 5238(a), including directors, officers, employees, other agents, and persons formerly occupying such positions; "proceeding" shall have the same meaning as in Section 5238(a), including any threatened action or investigation under Section 5233 or 10. brought by the Attorney General; and "expenses" shall have the same meaning as in Section 5238(a), including reasonable attorneys' fees. Section 2. Approval of Indemnity. On written request to the Board in each specific case by any agent seeking indemnification, to the extent that the agent has been successful on the merits, the Board shall promptly authorize indemnification in accordance with Section 5238( d). Otherwise the Board shall promptly determine, by a majority vote of a quorum consisting of directors who are not parties to the proceeding, whether, in the specific case, the agent has met the applicable standard of conduct stated in Section 5238(b) or Section 5238(c), and, ifso, shall authorize indemnification. Section 3. Advancing Expenses. To the fullest extent allowed by the Delaware General Corporation Law and Section 5238 of the California Nonprofit Public Benefit Corporation Law, and except as otherwise determined by the Board in specific instances, the Board shall authorize the advance of expenses incurred by or on behalf of an agent of this corporation in defending any proceeding prior to final disposition, if the Board finds that: (a) the requested advances are reasonable in amount under the circumstances; and (b) before any advance is made, the agent will submit a written undertaking satisfactory to the Board to repay the advance unless it is ultimately determined that the agent is entitled to indemnification for the expenses under this Article. Unless the Board finds compelling reasons to do otherwise, the undertaking shall be unsecured, and no interest shall be charged on the obligation created thereby. Section 4. Insurance. The Board may adopt a resolution authorizing the purchase of insurance on behalf of any agent against any liability asserted against or incurred by the agent in such capacity or arising out of the agent's status as such, and such insurance may provide for coverage against liabilities beyond this corporation's power to indemnify the agent under law. ARTICLE IX GRANTS ADMINISTRATION Section 1. Purpose of Grants. This corporation shall have the power to make grants and contributions and to render other financial assistance for the purposes expressed in this corporation's Certificate of Incorporation. In making grants to or for the benefit of the City of Gilroy, the corporation shall select one or more specific programs on which to focus its support in order to meet all of the criteria necessary to qualify as an organization "operating in connection with" the City of Gilroy, including without limitation, the requirements of the Responsiveness Test and the Integral Part Test as provided in Reg. Ss1.509(a)-4(i)(l). 11. Section 2. Exclusive Power in the Board. The Board shall have exclusive control over grants, contributions, and other financial assistance provided by this corporation. The Board shall review any requests for funds and shall require that such requests specify with particularity the use to which the funds will be put. If the Board approves a request for funds, the Board shall authorize payment of such funds to the City of Gilroy only if such grant will conform to the requirements of the preceding Section. Section 3. Refusal: Withdrawal. The Board, in its absolute discretion, shall have the right to refuse to make any grants or contributions, or to render other financial assistance, for any or all of the purposes for which the funds are requested. In addition, the Board, in its absolute discretion, shall have the right to withdraw its approval of any grant at any time and use the funds for other purposes within the scope of the purposes expressed in this corporation's Certificate ofIncorporation and this Article IX. ARTICLE X DISSOLUTION Section 1. Election to Dissolve. This corporation may be dissolved upon: (i) a majority vote of the Board of Directors to liquidate and dissolve; or (ii) the single vote of the Council Director to liquidate and dissolve the corporation, if such vote is made following and pursuant to a duly adopted resolution by the City Council of the City of Gilroy resolving to direct its Council Director to vote for the dissolution of the corporation. Section 2. Distribution of Assets on Dissolution. No part of the earnings, properties or assets of this corporation, on dissolution or otherwise, shall inure to the benefit of any private person or individual or any director, or officer of this corporation, and on liquidation or dissolution all properties and assets of this corporation remaining after paying or providing for all debts and obligations shall be distributed and paid over to the City of Gilroy. ARTICLE XI MISCELLANEOUS Section 1. Fiscal Year. The fiscal year of this corporation shall end each year on the last day of February. Section 2. Contracts, Notes, and Checks. All contracts entered into on behalf of this corporation must be authorized by the Board or any person or persons on whom such power may be conferred by the Board, and, except as otherwise provided by law, every check, draft, promissory note, money order, or other evidence of indebtedness of this corporation shall be signed by any person or persons on whom such power may be conferred by the Board. 12. Section 3. Annual Reports to Directors. Within 120 days after the end of this corporation's fiscal year, the President shall furnish a written report to all directors of this corporation containing the following information (a) the assets and liabilities, including the trust funds of this corporation, as of the end of the fiscal year; (b) the principal changes in assets and liabilities, including trust funds, during the fiscal year; (c) the revenue or receipts of this corporation, both unrestricted and restricted for particular purposes, for the fiscal year; (d) the expenses or disbursements of this corporation, for both general and restricted purposes, for the fiscal year; and (e) any transaction during the previous fiscal year involving $100,000.00 or more between this corporation (or its parent or subsidiaries, if any) and any of its directors or officers (or the directors or officers of its parent or subsidiaries, if any) or any holder of more than ten percent of the voting power of this corporation or its parent or subsidiaries, if any, and the amount and circumstances of any indemnifications or advances aggregating more than $10,000.00 paid during the fiscal year to any director or officer of this corporation. For each transaction, the report must disclose the names of the interested persons involved in such transaction, stating such person's relationship to this corporation, the nature of such person's interest in the transaction and, where practicable, the value of such interest. The foregoing report shall be accompanied by any report thereon of independent accountants or, if there is no such report, the certificate of an authorized pfficer of this corporation that such statements were prepared without an audit from the books and records of this corporation. Section 4. Amendments. Proposed amendments to these Bylaws shall be submitted in writing to the directors at least ten (10) days in advance of the Board meeting at which they will be considered for adoption. A. Council Director. Notwithstanding any other provision of these Bylaws to the contrary, the provisions of Article IV, Section 3.A, Section 5 and Section 6; Article X, Section 1 and Section 2; Article XI, Section 4; and any other provisions relating to the Council Director or rights or benefits afforded the City of Gilroy may be adopted, amended or repealed only by approval of the Council Director, if such approval is given following and pursuant to a duly adopted resolution by the City Council of the City of Gilroy resolving to direct the Council Director to so adopt, amend or repeal such provision( s). 13. B. High Vote Requirement. Unless otherwise specifically provided in these By laws, a 2/3 consent and approval of the Board shall be required to adopt, amend or repeal any other provisions of this corporation's Bylaws. Section 5. Governing Law: Interpretation. In all matters not specified in these Bylaws, or in the event these Bylaws shall not comply with applicable law, the Delaware General Corporation Law as then in effect shall apply, subject to the following. If any provision of these Bylaws shall be held illegal, invalid or unenforceable, in whole or in part, it is this corporation's stated desire that such provision be modified in accordance with Section 4 of this Article XI to render it legal, valid and enforceable while to the fullest extent possible preserving the business and corporate intent and impact of the original provision, and that the legality, and the validity and enforceability of all other provisions of these Bylaws not be affected. This corporation shall not enter into any contract, lease, agreement or similar instrument, obligation or commitment (collectively, "Contracts") which conflicts with the provisions of this corporation's Bylaws, including, without limitation, any Contract which conflicts with the rights of the Council Director and the City of Gilroy under Articles X and XI hereof. Should any provision of any such Contract conflict with any provision of these Bylaws, it is this corporation's stated desire that the provisions of these Bylaws shall be controlling. 14. CERTIFICATE OF SECRETARY I, the undersigned, certify that I am presently the duly elected and acting Secretary of Gilroy Gardens Family Theme Park, Inc., a Delaware nonprofit public benefit corporation, and that the above Bylaws, consisting of fifteen (15) pages, are the Bylaws of this corporation as adopted by the unanimous consent of the Board of Directors on , 2008. Dated: 2008 Patti Harmon, Secretary 15.