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2019-03-29 (23) Assignment & Assumption (Edward J. Himmerlberg Equity Investor) DOC # 2019-0120800DOC # 2019-0120800 FNTG 6u"ider CtVIOU's 300 nzo 1-u5 REQUESTED BY AND WHEN RECORDED MAIL TO: City of La Quinta 78495 Calle Tampico La Quinta, CA 92253 Attn: City Manager 04/10/2019 01:11 PM Fees: $196.00 Page 1 of 7 Recorded in Official Records County of Riverside Peter Aldana Assessor -County Clerk -Recorder "This document was electronically submitted to the County of Riverside for recording" Receipted by: MARY #420 Exempt From Recording Fee Pursuant to Government Code§ 27383 ASSIGNMENT AND ASSUMPTION AGREEMENT is Assi ment and Assumption Agreement ("Assignment") is entered into this A�day of 2019 by and between SILVERROCK PHASE I, LLC, a Delaware limited liability cofnpany ("Assignor") and SILVERROCK LAND, LLC a Delaware limited liability company ("Assignee") with reference to the following: RECITALS A. Reference is made to that certain Assignment and Assumption Agreement entered into as of November 28, 2018 (the "First Assignment and Assumption Agreement") by and between SilverRock Development Company, LLC, a Delaware limited liability company, as assignor, and SilverRock Phase I, LLC, a Delaware limited liability company, as assignee, recorded in the Official Records of County of Riverside on November 29, 2018 as Document Number 2018-0465379. The recitals set forth in the First Assignment are incorporated herein by this reference. B. Assignor now desires to transfer the portion of the Site described in Exhibit "A" attached hereto (the "Transferred Property") to Assignee, and concurrently therewith, to transfer to Assignee all of Assignor's rights and responsibilities under the Project Agreements to the extent that such rights and responsibilities relate to the Transferred Property. NOW, THEREFORE, in consideration of the foregoing Recitals, which are incorporated herein by this reference, and for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: Assignor hereby assigns to Assignee all of Assignor's rights and responsibilities under the terms of the Project Agreements, but only to the extent that such rights and responsibilities arise from the ownership of the Transferred Property and after the "Effective Date" (as that term is defined in Section 4 below) of this Assignment (collectively, the "Assigned Rights and Obligations"). 2. Assignee hereby accepts the foregoing assignment of the Assigned Rights and Obligations and agrees to be bound by the terms of the Project Agreements to the extent that such terms affect or are affected by ownership of the Transferred Property. 3. The parties hereto acknowledge and agree that Assignee shall not be responsible for any of the obligations of the Project Agreements which arise from ownership of any portion of the Transferred Property and which arise prior to the Effective Date hereof, or which arise from any portion of the Development Property other than the Transferred 4830-9739-2522.1 DOC #2019-0120800 Page 2 of 7 Property after the Effective Date hereof. As such, a default by Assignor under any of the Project Agreements prior to the Effective Date hereof, or with respect to any portion of the Development Property other than the Transferred Property after the Effective Date hereof ("Assignor's Default") shall not be deemed a default by Assignee, and Assignor shall indemnify, defend and hold harmless Assignee from any and all losses, claims or liability, including without limitation reasonable attorneys' fees and costs, arising from an Assignor's Default. A default by Assignee under any of the Project Agreements with respect to the Transferred Property after the Effective Date hereof ("Assignee's Default") shall not be deemed a default by Assignor, and Assignee shall indemnify, defend and hold harmless Assignor from any and all losses, claims or liability, including without limitation reasonable attorneys' fees and costs, arising from an Assignee's Default. 4. This Assignment shall be deemed effective upon the last of the following events to occur: (a) conveyance of the Transferred Property to Assignee as evidenced by the recording of the grant deed therefor in the Official Records of the County of Riverside, California, and (b) the written consent to this Assignment by the City with respect to the Assigned Rights and Obligations arising under the Project Agreements (herein referred to as the "Effective Date"). 5. Except as otherwise described in paragraph 4 above, the parties hereto each warrant and represent that they have taken all necessary corporate action to authorize the execution and performance of this Assignment and that the individuals executing this document on behalf of the parties are authorized to do so, and by doing so, create binding obligations as described herein of the party represented. 6. This Assignment shall be governed by the internal laws of the State of California, without regard to conflict of law principles. 7. This Assignment may be signed in counterparts which, when signed by both parties hereto, shall constitute a binding agreement. [End - Signature page follows] -2- 4830-9739-2522.1 DOC #2019-0120800 Page 3 of 7 WHEREFORE, the parties hereto have executed this Assignment on the date first written above. Date: Pin , to, , 2019 Date: W l D , , 2019 "Assignor" SILVERROCK PHASE I, LLC a Delaware limited liability company By: The Robert Green Company a California corporation Its: Man By: Name: Robert S. Great, Jr. Its: President and Chief Executive Officer "Assignee" SILVERROCK LAND, LLC a Delaware limited liability company By: The Robert Green Company, a California corporation Its: Man r By. Name: Robert S. Green, Jr. Its: President and Chief Executive Officer 4830-9739-2522.1 -3- DOC #2019-0120800 Page 4 of 7 CONSENT By execution below, the City hereby consents to the foregoing assignment. CITY OF LA QUINTA, a Califo is municipaia,yof ation and charter city ag J. SPEVACEK, City Manager ATTEST: La Quinta, California Monika Radeva, City Clerk APPROVED AS TO FORM: RRUT]AN & TUCKER, LLP WILLIAM H. IHRKE, City Attorney City of La Quinta, California -4- 4B3o-9739-2522.2 DOC #2019-0120800 Page 5 of 7 A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. STATE OF CALIFORNIA COUNTY OF SAN��D�I]]EGO t� On N\ Uk.Ct/►'t )—�. R 01 ', before me, �v ,� ` (] • �1A]LLLr I (Insert name and title of the officer) �'U personal) ppearedRN who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. ESS my hand and official seal. f + PAULETTE FARQUHAR ` 1! Notary Public - California San Diego County Signature Commission N 2265411 My Comm. Expires Nov 2, 2022 (Seal) -5- 4830-9739-2522.1 DOC #2019-0120800 Page 6 of 7 Eary public or other officer completing this certificate verifies only the identity of the individual signed the document to which this certificate is attached, and not the truthfulness, accuracy, or ty of that document. STATE OF CALIFORNIA COUNTY OF RIVERSIDE On �'\Q d�� �� before me, OV1nl1�'� (Insert name and title of the officer) personaily appeared „ a� �` who proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that hels.Ke executed the same in his/hdr authorized capacity, and that by his/ht�r signature an the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my Ana4d,�iai seal. Signature MONIKA RADEVA Notary Public • California Riverside County n x Commission # 2168979 My Comm. Expires Oct 22, 2020 y (Seal) 1A 483a9739-2522.2 DOC #2019-0120800 Page 7 of 7 EXHIBIT "A" LEGAL DESCRIPTION OF THE TRANSFERRED PROPERTY Those portions of Sections 5, 6 and 8 Township 6 South, Range 7 East, San Bernardino Meridian, in the City of La Quinta, County of Riverside, State of California, described as follows: Parcels 10 and 11 of Parcel Map No. 37207 in the City of La Quinta, County of Riverside, State of California, per map filed May 3, 2017 in Book 242, Pages 72 through 87, inclusive, of Parcel Maps, in the office of the County Recorder of Riverside County, State of California. -7- 4830-9739-2522.1 1 Monika Radeva From:Dana Schiffman <dschiffman@cgs3.com> Sent:Friday, March 29, 2019 1:05 PM To:Ihrke, Bill; Monika Radeva Cc:Joseph E. von Meier; jon@tallmangroup.net; Frank Spevacek; Fred Schuster; 'robert@therobertgreencompany.com' Subject:RE: SilverRock Follow Up Flag:Follow up Flag Status:Flagged Yes, please send to me at my address below.  In addition, this email will serve as  acknowledgement and acceptance of the conditions/instructions in your email below.     Dana Schiffman    Crosbie Gliner Schiffman Southard & Swanson LLP  12750 High Bluff Drive, Suite 250  San Diego, California  92130  858.367.7694  dschiffman@cgs3.com        LinkedIn  |  Twitter  |  Google+     Visit our new website: www.cgs3.com    From: Ihrke, Bill <bihrke@rutan.com>   Sent: Friday, March 29, 2019 12:43 PM  To: Dana Schiffman <dschiffman@cgs3.com>; Monika Radeva <mradeva@laquintaca.gov>  Cc: Joseph E. von Meier <jvonmeier@cgs3.com>; jon@tallmangroup.net; Frank Spevacek <Fspevacek@laquintaca.gov> Subject: RE: SilverRock  Importance: High    Hi Dana – Please confirm that you would like the original Assignment/Assumption sent to your attention at the address  below.  FYI, a PDF copy executed by the City is attached.    Upon receipt of the original executed Assignment/Assumption, you are instructed to:  (1) Date, or cause to be dated, the original to coincide with the closing and recording date effectuating the  assignment and assumption;  (2) Cased to be signed by Assignor and Assignee, with date of signature, the Assignment/Assumption;  (3) Record, or cause to be recorded, the Assignment/Assumption only if the Assignee is Silverrock Land, LLC, an  approved affiliate and transferee under the Third Amendment to the Purchase Sale and Development  2 Agreement by and between the City of La Quinta and Silverrock Development Company, and assignee in  accordance with the transaction described in your email (below) dated, Thursday, February 21, 2019 5:20 PM;   (4) The Assignment/Assumption is to facilitate the transaction in which Edward J. Himmelberg will be the equity  investor;   (5) Prior to recording or causing to record the Assignment/Assumption, you contact the La Quinta City Manager  (Frank Spevacek), City’s Economist/Consultant (Jon McMillen), or me to authorize recording.  (6) Return a conformed copy of the recorded Assignment/Assumption to the City Clerk, Monika Radeva, within 10  days of recording (or such longer time to allow for unforeseen delays).    Thanks Dana.  Do not hesitate to contact me if you have any questions.  Bill      William H. Ihrke Rutan & Tucker, LLP 611 Anton Boulevard, 14th Floor Costa Mesa, CA 92626 (714) 338-1863 (direct) bihrke@rutan.com www.rutan.com RUTAN _____________________________________________________  Privileged And Confidential Communication.  This electronic transmission, and any documents attached hereto, (a) are protected by the Electronic Communications Privacy Act  (18 USC §§ 2510‐2521), (b) may contain confidential and/or legally privileged information, and (c) are for the sole use of the  intended recipient named above. If you have received this electronic message in error, please notify the sender and delete the  electronic message. Any disclosure, copying, distribution, or use of the contents of the information received in error is strictly  prohibited.  From: Dana Schiffman [mailto:dschiffman@cgs3.com]   Sent: Wednesday, March 27, 2019 3:14 PM  To: Ihrke, Bill <bihrke@rutan.com>; jon@tallmangroup.net  Cc: Joseph E. von Meier <jvonmeier@cgs3.com>  Subject: RE: SilverRock    Ok.  Thank you.  Attached is a revised word copy of the Assignment and Assumption marked to  show changes and a pdf clean execution copy.     Dana Schiffman    Crosbie Gliner Schiffman Southard & Swanson LLP  12750 High Bluff Drive, Suite 250  San Diego, California  92130  858.367.7694  dschiffman@cgs3.com      3   LinkedIn  |  Twitter  |  Google+     Visit our new website: www.cgs3.com    From: Ihrke, Bill <bihrke@rutan.com>   Sent: Wednesday, March 27, 2019 2:07 PM  To: Dana Schiffman <dschiffman@cgs3.com>; jon@tallmangroup.net  Cc: Joseph E. von Meier <jvonmeier@cgs3.com>  Subject: FW: SilverRock    Dana – I look forward to our call at 3:30 to discuss the CVWD Agreement.  With  respect to the Assignment/Assumption Agreement, Jon and I are OK with it, and I’m fine the form EXCEPT please  modify the last sentence  of the first recital (Recital A) as follows:    Reference is made to that certain Assignment and Assumption Agreement entered into as of November 28, 2018 (the  “First Assignment and Assumption Agreement”) by and between SilverRock Development Company, LLC, a Delaware  limited liability company, as assignor, and SilverRock Phase I, LLC, a Delaware limited liability company, as assignee,  recorded in the Official Records of County of Riverside on November 29, 2018 as Document Number 2018‐0465379.  The  recitals set forth in the First Assignment are a substantive part of this Assignment, incorporated herein by this reference,  and any capitalized terms not otherwise defined in this Assignment shall have the same meaning ascribed to them in the  First Assignment.    Also, please send me a PDF copy of Instrument 2018‐0465379 if you have a digital copy handy.  I don’t have a hard copy  of it in front of me.  Finally, please confirm the name of the equity investor so I have it for my files.    With this revision, please re‐send the Assignment and Assumption Agreement, and we can get it signed later today.  (I’ve  attached the clean and redline you sent previously for convenience.)  Many thanks.  Bill      William H. Ihrke Rutan & Tucker, LLP 611 Anton Boulevard, 14th Floor Costa Mesa, CA 92626 (714) 338-1863 (direct) bihrke@rutan.com www.rutan.com RUTAN _____________________________________________________  Privileged And Confidential Communication.  This electronic transmission, and any documents attached hereto, (a) are protected by the Electronic Communications Privacy Act  (18 USC §§ 2510‐2521), (b) may contain confidential and/or legally privileged information, and (c) are for the sole use of the  intended recipient named above. If you have received this electronic message in error, please notify the sender and delete the  electronic message. Any disclosure, copying, distribution, or use of the contents of the information received in error is strictly  prohibited.  From: Dana Schiffman [mailto:dschiffman@cgs3.com]   Sent: Monday, March 11, 2019 3:54 PM  To: Ihrke, Bill <bihrke@rutan.com>  Cc: Joseph E. von Meier <jvonmeier@cgs3.com>; Jon ? McMillen <jon@tallmangroup.net>; Fred Schuster  4 <fred@therobertgreencompany.com>; 'robert@therobertgreencompany.com' <robert@therobertgreencompany.com> Subject: RE: SilverRock    Bill, attached is a clean and marked copy of the proposed Assignment and Assumption  Agreement relating to the PSDA and Parcels 10 and 11.  The marked copy shows changes from  the executed Assignment and Assumption Agreement entered into in connection with  Amendment No. 3 to the PSDA.  We are planning on recording this Assignment and then a  Quitclaim deed of Parcels 10 and 11 from SilverRock Phase I, LLC to SilverRock Land, LLC.  The  thought is to ask Fidelity to record the Assignment and Quitclaim, in that order, on an  accommodation basis.     Let me know if you have any questions or comments.   Also, let me know the timing for  delivery to me of the Consent (attached to and part of the Assignment) by the City in a manner  that would allow me to combine that with the Assignor and Assignee signature page and  forward the same on to Fidelity for recording.         hold in an escrow capacity    Dana Schiffman    Crosbie Gliner Schiffman Southard & Swanson LLP  12750 High Bluff Drive, Suite 250  San Diego, California  92130  858.367.7694  dschiffman@cgs3.com        LinkedIn  |  Twitter  |  Google+     Visit our new website: www.cgs3.com    From: Dana Schiffman   Sent: Friday, March 8, 2019 11:25 AM  To: 'Ihrke, Bill' <bihrke@rutan.com>  Cc: Joseph E. von Meier <jvonmeier@cgs3.com>; Jon ? McMillen <jon@tallmangroup.net>; 'Fred Schuster'  <fred@therobertgreencompany.com>; 'robert@therobertgreencompany.com' <robert@therobertgreencompany.com> Subject: RE: SilverRock                Bill, the investment transaction timing has been delayed but is proceeding.  I prefer  including an Assignment and Assumption of the PSDA as to the conveyance of parcels 10 and  11.   My only concern was timing in terms of the process of obtaining the City consent to the  5 same.  Please let me know about process/timing but in the meantime, I will go ahead and  prepare the PSDA Assignment and Assumption.   I just left you a voice mail along the same  lines.    Dana Schiffman    Crosbie Gliner Schiffman Southard & Swanson LLP  12750 High Bluff Drive, Suite 250  San Diego, California  92130  858.367.7694  dschiffman@cgs3.com        LinkedIn  |  Twitter  |  Google+     Visit our new website: www.cgs3.com    From: Ihrke, Bill <bihrke@rutan.com>   Sent: Tuesday, March 5, 2019 5:22 PM  To: Dana Schiffman <dschiffman@cgs3.com>  Cc: Joseph E. von Meier <jvonmeier@cgs3.com>; Jon ? McMillen <jon@tallmangroup.net>  Subject: RE: SilverRock    Dana – I received this email and voice mail but didn’t receive a proposed assignment/assumption.  I apologize if I missed  it.  However, it sounds like there wasn’t a need at this point to address the new entity for purposes of the land transfer,  but let me and Jon know if you like to discuss further at this time if escrow hasn’t closed.    Thanks.  Bill    William H. Ihrke Rutan & Tucker, LLP 611 Anton Boulevard, 14th Floor Costa Mesa, CA 92626 (714) 338-1863 (direct) bihrke@rutan.com www.rutan.com RUTAN _____________________________________________________  Privileged And Confidential Communication.  This electronic transmission, and any documents attached hereto, (a) are protected by the Electronic Communications Privacy Act  (18 USC §§ 2510‐2521), (b) may contain confidential and/or legally privileged information, and (c) are for the sole use of the  intended recipient named above. If you have received this electronic message in error, please notify the sender and delete the  electronic message. Any disclosure, copying, distribution, or use of the contents of the information received in error is strictly  prohibited.  6 From: Dana Schiffman [mailto:dschiffman@cgs3.com]   Sent: Thursday, February 21, 2019 5:20 PM  To: Ihrke, Bill <bihrke@rutan.com>  Cc: fred@therobertgreencompany.com; 'robert@therobertgreencompany.com'  <robert@therobertgreencompany.com>; Joseph E. von Meier <jvonmeier@cgs3.com>; Jon  McMillen  <jon@tallmangroup.net>  Subject: SilverRock    Bill, I left you a voice mail earlier this afternoon.  We are completing the admission of an  equity investor into SilverRock Phase I, LLC and related to that transaction   SilverRock Phase I, LLC will be transferring Parcels 10 and 11 to a newly formed SilverRock  Land, LLC.      SilverRock Land, LLC will initially be owned by SilverRock Phase I, LLC and will be managed by  The Robert Green Company (RGC).  Shortly thereafter, the third party investor will become the  indirect owner of SilverRock Land, LLC but at all times, SilverRock Land, LLC will be both  directly and indirectly controlled by RGC and RGC will be the development manager as to the  land held by SilverRock Land, LLC (although, as you may recall, no development is  contemplated on these (and also Parcel 12) for quite some time).      Before any development or sale of this land (which is about a year out), SilverRock Phase I will  again become the owner of SilverRock Land LLC and therefore the indirect owner of Parcels 10  and 11.     Prior to, during and after these steps, RGC will have sole control and development  management responsibility over Parcels 10 and 11.     This transaction does not trigger a City consent or approval.   However, consistent with the  how we documented the transfer of the Phase 1A property from SRDC to SilverRock Phase I  wherein we entered into an Assignment and Assumption of PSDA as to which the City is a  signatory, we propose to include the same Assignment and Assumption of PSDA with the  Parcels 10 and 11 transfer to SilverRock Land, LLC.      The request and question I have is this:  if we were to prepare the Assignment and Assumption  of PSDA per the above and deliver it to you early next week, would it be possible to have the  City sign it and for it to be returned to me in escrow of use in connection with the above  described transfer of Parcels 10 and 11.  We are looking to admit the investor as early as 2/28  or within just a matter of days thereafter and would need the Assignment and Assumption of  PSDA back from the City before then.     Dana Schiffman    Crosbie Gliner Schiffman Southard & Swanson LLP  7 12750 High Bluff Drive, Suite 250  San Diego, California  92130  858.367.7694  dschiffman@cgs3.com        LinkedIn  |  Twitter  |  Google+     Visit our new website: www.cgs3.com