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HomeMy WebLinkAboutGilroy Gardens - Purchase and Sale Agreement - Amendment No. 1 F~STAMENDMENTTOPURCHASEANDSALEAGREEMENT (Gilroy Gardens Property, Gilroy, California) This First Amendment to Purchase and Sale Agreement ("First Amendment") is made effective as of the 25th day of February, 2008, 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 F AMIL Y THEME PARK, INC., a Delaware nonprofit corporation formerly known as "Bonfante Gardens, Inc." ("Seller"). Recitals A. Seller and Purchaser have entered into that certain Purchase and Sale Agreement and Escrow Instructions dated as of January 22, 2008 (the "Purchase Agreement"), pursuant to which Seller has agreed to sell and convey to Purchaser, and Purchaser has agreed to purchase from Seller, certain real property, consisting of a horticultural education and theme park known as Gilroy Gardens located in Gilroy, California, and certain related personal property assets (collectively the "Property"), subject to and on the terms and conditions contained therein. Except as otherwise defined herein, the capitalized terms used in this First Amendment shall have the meanings ascribed to them in the Purchase Agreement. NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth below, and for other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows: 1. Recitals. The Recitals set forth above are true and correct and are incorporated herein by reference. 2. Extension of Closing Date. Section 2.7.1 of the Purchase Agreement is modified to provide that the Closing Date shall be March 3,2008 (or such earlier date as is agreed upon by the parties). Seller acknowledges that the Purchase Agreement provides for Purchaser to pay the Purchase Price by causing 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 such 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. This arrangement requires Purchaser to effectively deliver the Purchase Price prior to the formal Closing. Accordingly, if Purchaser has paid the full Purchase Price as aforesaid, but the Closing is delayed for any reason, Purchaser may extend the Closing Date to a date selected by Purchaser (but not later than May 3,2008), in the sole exercise of Purchaser's discretion; provided, however, that in the event closing has not occurred by March 3,2008, then Buyer and Seller shall promptly execute instructions to the Escrow Holder directing the Escrow Holder to release the Trust Indenture Deposits (as that term is used in the Purchase Agreement) to Seller. This paragraph shall not entitle Seller to further extend the Closing or otherwise fail to perform its obligations under the Purchase Agreement. ITMORELLI753765.3 022608-04706118 -1- 3. Counterparts. This First Amendment may be executed in counterparts, each of which shall be deemed an original and together shall constitute one instrument. Copies of this First Amendment signed by either party and transmitted to the other party by facsimile shall be deemed the same as an original signature on the First Amendment and shall be binding on, and enforceable against, such party whose signature is transmitted by facsimile. 4. Conflicts. Except as modified above, the terms and conditions of the Purchase Agreement shall remain unmodified and in full force and effect. In the event of any conflict or inconsistency between the terms of this First Amendment and the terms of the Purchase Agreement, the terms of this First Amendment shall control. [signatures on following page] ITMORELLI753765.3 022608-04706118 -2- IN WITNESS WHEREOF, the parties have executed this First Amendment as of the date first set forth above. SELLER: GILROY GARDENS F AMIL Y THEME PARK, INC., a Delaware nonprofit corporation "7 , ,., / ) 7 / ",/ .t....////~ By: Name," /t1;~?/kZ::1 TItle: _t~~1 PURCHASER: CITY OF(OfLROY, C~ifornia I \ \ \. \" By: By: APPROVED AS TO FORM: By: \~ c[.~ L- Name: Linda A. Callon Title: City Attorney ITMORELLI753765.3 022608-04706118 -3-