Loading...
HomeMy WebLinkAboutKush Hospitality Inc. - Agreement - 4-24-2023uuuu Jll�f.11 CIlvulupu lu. �UOD//'1r0-/1�/'1V�40V J-.7LJC-GY11`'FJ7VJYHrIi DocuSign Envelope ID: 9D9BC1A4-1FBC-4C18-85AA-535BOD492A1E AGREEMENT FOR PURCHASE AND SALE OF REAL PROPERTY AND ESCROW INSTRUCTIONS Assessor's Parcel Number: 434-143-06 4061 North Blackstone Avenue, Fresno, CA 93726 This Agreement for Purchase and Sale of Real Property and Escrow Instructions (Agreement) is entered into by and between the CITY OF FRESNO, a municipal corporation, (City or Buyer) and KUSH HOSPITALITY INC., a California Corporation (Seller). City and Seller are collectively referred to herein as "the Parties." RECITALS A. Seller is the owner of real property, located at 4061 North Blackstone Avenue, commonly known as Clarion Pointe Motel, in the City of Fresno, Assessor's Parcel Number 434-143-06 (Subject Property). B. City desires to purchase the Subject Property to facilitate the development of an Interim Homeless Shelter. C. City has been in active negotiations with Seller for the Purchase and Sale of the Subject Property. D. City now wishes to purchase from Seller and Seller now wishes to sell to City, the Subject Property, subject to the terms and conditions herein. AGREEMENT NOW, THEREFORE, in consideration of the foregoing and of the covenants, conditions, and premises hereinafter contained to be kept and performed by the respective parties, it is mutually agreed as follows- 1. Subject Property. The Subject Property is located at 4061 North Blackstone Avenue in the City of Fresno, County of Fresno, State of California, identified as Assessor's Parcel Number 434-143-06, which includes fixtures and improvements located on the property and all rights, privileges, and appurtenances, including any permits and easements. A legal description of the Subject Property is described in Exhibit A, attached hereto, and incorporated herein by reference. 2. Existing Agreement. The Parties acknowledge Seller entered into an Agreement on or about March 29, 2022, with Zero Impact Solutions, Inc. and Zero Impact Builders, Inc., for the purchase, installation, and service of Electric Vehicle (EV) Chargers, attached hereto as Exhibit B, and incorporated herein by reference. The EV chargers were approved for installation by the State of California and PG&E and are scheduled for installation on the Subject Property in 2023. Seller is attempting to secure State and PG&E approval for the EV Chargers Agreement to be assigned to another property owned by Seller. If Seller is unable to secure assignment of said EV Chargers Agreement to another property owned by Seller, City will assume agreement as is applicable to the Subject Property. UVI.u,DiyiI CI IvCIVpC iu. m-ioot i,+J.7VJ'#Nrl.+ DocuSign Envelope ID: 9D9BC1A4-1FBC-4C18-85AA-535BOD492A1E 3. Fee Title. Selier shall grant the Subject Property to City in fee, free and clear of all liens, encumbrances, and restrictions of record. 4. Purchase Price. City shall pay Seller Eleven Million Eight Hundred Thousand Dollars ($11,800,000) (Purchase Price) for the Subject Property. 5. Effective Date. The Effective Date of this Agreement shall be upon its duly authorized execution by the Parties after City Council approval. 6. Right to Sell. Seller represents and warrants it holds fee title to the Subject Property, that it has the authority to enter into this Agreement, and that the Subject Property is free and clear of all liens, encumbrances, and restrictions of record. Seller agrees to hold City harmless and reimburse City for any and all losses and expenses as to the Subject Property by reason of any change in ownership or lease held by any guest or tenant of the Seller. 7. Escrow Instructions. The sale shall be completed through an External Escrow to be opened at Placer Title Company, located at 7700 N. Palm Avenue, Suite 101, Fresno, CA 93711 (Escrow Holder). Said escrow shall be opened upon the following terms and conditions, and Seller and City by their signature to this Agreement, make this paragraph their escrow instructions: a. Deposits. The City shall deposit the sums specified in Paragraph 4 of this Agreement and the allocable closing costs in escrow upon receipt of a demand and statement from Escrow Holder: i. Non -Refundable Deposit. Within ten days of the Effective Date of this Agreement, City shall deposit with Escrow Holder the sum of Two Hundred Fifty Thousand Dollars ($250,000) (the Non - Refundable Deposit ). The Non -Refundable Deposit shall be applied to the Purchase Price at Close of Escrow. ii. Balance of Purchase Price. City shall pay the balance of the Purchase Price, less the Nola -Refundable Deposit to Seller, in good funds through Escrow, not later than the close of business on the day before the Close of Escrow. Escrow Holder will forward to both City and Seller a separate accounting of all funds received and disbursed for each party. Payment of said sums, less Seller's cost to clear title, if any, may be made to Seller only when Escrow Holder possesses and is in a position to deliver to the City, a fully executed, acknowledged, and recorded deed to the Subject Property, free and clear of all liens, encumbrances, and restrictions of record. b. Feasibility Period. City shall have the right to examine the feasibility of the Subject Property for a period of up to ten days after the parties have executed this Agreement (the Feasibility Period). i. Access. City shall have the right to access the Subject Property at all times following execution of this Agreement by the Parties, for the purpose of conducting all studies, inspections, evaluations, 2 L/UI.UJlyl I CI IVUlLyt: IU. .7VOO / /1r O-MUMU-+OU.7-.7GJC-GM I VJ27UJ4/'1r 1, DocuSign Envelope ID: 9D9BC1A4-lFBC-4C18-85AA-535BOD492A1E tests, or surveys of the Subject Property that City elects to have performed upon reasonable notice to the Seller. City agrees to indemnify and hold Seller harmless from any and all liability, loss, cost, damage, or expense that Seller may sustain or incur by reason of, or in connection with, such entry, studies, inspections, evaluations, tests, or surveys conducted by City during the Feasability Period. ii. Feasibility Package. Seller shall deliver to City a feasibility package within five days of execution of this Agreement. The following shall be included as due diligence in the package to the extent in the possession or control of Seller: 1. Any documents relating to special assessment or bonds; 2. All known current litigation affecting the Subject Property; 3. All environmental reports; 4. Copy of all fees paid related to the Subject Property; 5. Updated preliminary title report and underlying documents and surveys; 6. All Plans and any history of repairs or maintenance; 7. List of any and all existing and in -place vendor contracts/agreements (e.g. utilities, ect.); 8. Any existing physical, environmental, soil, engineering, etc., studies and reports on the Subject Property; and 9. Any other documents or information related to the Subject Property that City shall require. C. Defects in Title. City reserves the right to accept title to the Subject Property to be acquired by City herein subject to certain defects in any or all matters of record title. In consideration for Seller receiving the total sum stated in Paragraph 4, the Seller covenants and agrees to indemnify and hold City harmless from any and all claims and demands third parties may make or assert and causes of action third parties may bring which arise out of, or are in connection with the foregoing defects in title to the Subject Property. The Seller's obligation herein to indemnify and hold City harmless shall not exceed the amount paid to the Seller specified in Paragraph 4. d. Financial Liabilities. It is understood that Seller shall be responsible for the payment of all taxes, penalties, redemptions, and costs allocable to the Subject Property. e. Costs. The Parties shall each pay one half of the escrow fee; Seller shall provide City with a CLTA policy of title insurance; recording fees (if any) shall be as customary in Fresno County; all other closing costs shall be 3 UUUUJIIJ.II CIIVCIUPC IL/..7LlOD//irO-M�/1U-'#OU7-5LJC-GF11`FJ�UJ'4F1r li DocuSign Envelope ID: 9D9BC1A4-1FBC-4C18-85AA-535BOD492A1E paid by the City; Seller will pay any cost to convey the title to the Subject Property. f. Disbursement. Disbursement of the Purchase Price shall be in the amounts, at the times, and in all respects in accordance with the terms and conditions and subject to the limitations of this Agreement. g. Close of Escrow. Close of Escrow for the Purchase and Sale of the Subject Property shall occur on May 10, 2023. The following Conditions of Sale must be met prior to Close of Escrow: i. City's approval of contents of preliminary title report and exceptions; ii. City's approval of any engineering reports; iii. No pending litigation against the Subject Property and no notices of violation of law; iv. City's approval of preliminary title report; v. City's approval of physical inspection of the Subject Property; vi. Approval of this Agreement by the City Council of the City of Fresno prior to execution by City, and vii. Escrow Holder is in possession of a good and sufficient grant deed, duly executed by Seller. viii. Seller's delivery of the Subject Property at Close of Escrow to City without any guests or tenants; 8_ Possession. Sole and exclusive possession of the Subject Property shall be delivered to City on the Close Date, free of all claims from Seller or any third persons under leases or otherwise. 9. Relocation. The Parties shall take all legally required steps to minimize displacements of persons (families, individuals, businesses, nonprofit organizations and farms) as a result of the City's planned use of the Subject Property and services rendered in pursuit thereof. The Parties acknowledge and agree, that under applicable law, a displaced person must be provided relocation assistance in accordancfe with regulations implementing the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA) (42 U.S.0 4601-4655). 10. Commission. At the Close of Escrow, and through escrow, Seller shall pay a brokerage commission to Seller's broker, Joshua Mettee of Mettee & Co., Inc., pursuant to a separate agreement. Seller and City shall defend and indemnify each other from any claims for commissions or fees arising from either party dealing with any other broker or agent other than those specified herein. City is not represented by a broker and shall not incur or be responsible for any commission fees involving any commission fees earned upon Close of Escrow. 4 UUUUJIIJ.I I CI Ivulupu lu. vLl00I 0-/'1.7MV-`40Vy'.7GJ C-LH 14J'7UJ'-F/ir lJ DocuSign Envelope ID: 909BC1A4-1FBC-4C18-85AA-53560D492A1E 11. Condition and Inspection of Subject Property. Notwithstanding any other provision of this Agreement to the contrary, Seller has not expressly or impliedly made any representations, guaranties, promises, statements, assurances, or warranties of any kind concerning the Subject Property. Seller has not conducted any investigation regarding the condition of the Subject Property. 12. Default and Remedies.= a. City's Default. IF CLOSE OF ESCROW SHALL FAIL TO OCCUR BECAUSE OF THE CITY'S DEFAULT UNDER THIS AGREEMENT, SELLER'S SOLE AND EXCLUSIVE REMEDY SHALL BE TO RETAIN THE CITY'S NON-REFUNDABLE DEPOSIT. ANY CITY DEPOSIT MADE IN EXCESS OF THE NON-REFUNDABLE DEPOSIT SHALL BE REFUNDABLE AT ALL TIMES AND RETURNED TO THE CITY, UPON REQUEST. b. Seller's Default. IF THE CLOSE OF ESCROW SHALL FAIL TO OCCUR BECAUSE OF SELLER'S DEFAULT UNDER THIS AGREEMENT, CITY MAY (1) TERMINATE THIS AGREEMENT, IN WHICH EVENT THE ENTIRE NON-REFUNDABLE DEPOSIT PREVIOUSLY MADE BY CITY AND ALL OTHER FUNDS DEPOSITED BY CITY SHALL BE RETURNED TO CITY AND THE PARTIES SHALL THEREAFTER HAVE NO OBLIGATIONS UNDER THIS AGREEMENT OR ADDITIONAL LIABILITY TO ONE ANOTHER; OR (2) MAINTAIN THIS AGREEMENT IN EFFECT AND PURSUE AN ACTION FOR SPECIFIC PERFORMANCE; OR (3) PURSUE ANY OTHER REMEDY AT LAW OR EQUITY, INCLUDING BUT NOT LIMITED TO AN ACTION FOR DAMAGES. 13. Indemnity. Seller shall indemnify, hold harmless, and defend the City, its officers, agents, employees, and volunteers from any liability, loss, fines, penalties, forfeitures, claims, expenses, and costs, whether incurred by the Seller, City, or any other third party, arising directly or indirectly from the release, presence or disposal of any hazardous substances or hazardous materials (as now or hereafter defined in any law, regulation or rule) in, on, or under the Subject Property that occurred on or before the effective date of this Agreement. This indemnity shall include, without limitation, any claims under the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (CERCLA), or any other federal, state, or local law whether statutory or common law, ordinance, or regulation in effect as of the effective date of this Agreement. Costs or losses covered will include, without limitation, consultants, engineering, investigator fees, clean up or disposal costs and reasonable attorneys' fees, and actual damages. 14. Notices. All notices, demands, consents, requests or other communications required to or permitted to be given pursuant to this Agreement shall be in writing, shall be given only in accordance with the provisions of this Section, shall be addressed to the parties in the manner set forth below, and shall be conclusively deemed to have been properly delivered: (a) upon receipt when hand delivered during normal business hours (provided that, notices which are Uul.uollJ.11 CIIVCIuyU IV..7U0�/Mr0-/iJ/1V ^40Vy'.7LJ C'G/114J.7VJV/'1r 1� DocuSign Envelope ID: 9D9BC1A4-1FBC-4C18-85AA-535BOD492A1E hand delivered shall not be effective unless the sending party obtains a signature of a person at such address that the notice has been received); (b) upon receipt when sent by facsimile if sent before 5:00 p.m. on a business day to the number set forth below with written confirmation of a successful transmission by the sender's facsimile machine; (c) upon the day of delivery if the notice has been deposited in an authorized receptacle of the United States Postal Service as first- class, registered or certified mail, postage prepaid, with a return receipt requested (provided that, the sender has in its possession the return receipt to prove actual delivery); or (d) one (1) business day after the notice has been deposited with either Golden State Overnight, Fed Ex or United Parcel Service to be delivered by overnight delivery (provided that, the sending party receives a confirmation of actual delivery from the courier). The addresses of the parties to receive notices are as follows: TO SELLER: KUSH HOSPITALITY INC., a California Corporation C/O Joshua Mettee, Mettee & Co., Inc., 7621 N Del Mar Avenue, Suite 102 Fresno, CA 93711 Email: ibmettee@gmail.com Telephone: (559) 313-7742 TO CITY: CITY OF FRESNO Attention: City Manager 2600 Fresno Street Fresno, CA 93721 Telephone: (559) 621-8000 TO ESCROW HOLDER: Placer Title Company Attention: Darryl Evans, Escrow Officer 7700 N. Palm Avenue, Suite 101 Fresno, California 93711 Telephone: (559) 261-8929 Each party shall make an ordinary, good faith effort to ensure that it will accept or receive notices that are given in accordance with this Section, and that any person to be given notice receives such notice. If any notice is refused, the notice shall be deemed to have been delivered upon such refusal. Any notice delivered after 5:00 p.m. (recipient's time) or on a non -business day shall be deemed delivered on the next business day. A party may change or supplement the addresses given above, or designate additional addressees, for purposes of this Section by delivering to the other party written notice in the manner set forth above. 15. Miscellaneous Provisions: a. Waiver. The waiver by either party of a breach by the other of any M UUI.UJlylI MIVCIUpt- IU. ,7L/001/1r0-M�/'1V�-FOVy-.7LJ C-Lf114J.'7VJV/ir l' DocuSign Envelope ID: 9D9BC1 A4-1 FBC-4C1 8-85AA-535BOD492AI E provision of this Agreement shall not constitute waiver or a waiver of any subsequent breach of either the same or a different provision of this Agreement. No provision of this Agreement may be waived unless in writing and signed by all parties to this Agreement. Waiver of any one provision herein shall not be deemed to be a waiver of any other provision herein. b. Governing Law and Venue. This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of California. Venue for purposes of the filing of any action regarding the enforcement or interpretation of this Agreement any rights and duties hereunder shall be Fresno, California. C. Headings. The section headings in this Agreement are for convenience and reference only and shall not be construed or held in any way to explain, modify, or add to the interpretation or meaning of the provisions of this Agreement. d. 5everability. The provisions of this Agreement are severable. The invalidity, or unenforceability or any one provision in this Agreement shall not affect the other provisions. e. Interpretation. The parties acknowledge that this Agreement in its final form is the result of the combined efforts of the parties and that, should any provision of this Agreement be found to be ambiguous in any way, such ambiguity shall not be resolved by construing this Agreement in favor of or against any party, but rather by construing the terms in accordance with their generally accepted meaning. f. Attorney's Fees. If either party is required to commence any proceeding or legal action to enforce or interpret any term, covenant or condition of this Agreement, the prevailing party in such proceeding or action shall be entitled to recover from the other party its reasonable attorney's fees and legal expenses. g. Precedence of Documents. In the event of any conflict between the body of this Agreement and any Exhibit or Attachment hereto, the terms and conditions of the body of this Agreement shall control and take precedence over the terms and conditions expressed within the Exhibit or Attachment. h. Cumulative Remedies. No remedy or election hereunder shall be deemed exclusive but shall, wherever possible, be cumulative with all other remedies at law or in equity. i. Exhibits and Attachments. Each Exhibit and Attachment referenced herein is by such reference incorporated into and made a part of this Agreement for all purposes. j. Non -Material Changes. The City Manager of the City, or designee, may execute any supplemental escrow instructions and may make minor modifications to this Agreement, the exhibits, and the LiuuuJIIJ.II CI Ivt Ilupu ILi. yUODlHr0-/1v/1U-+ouw-.7GJC-L/1 DocuSign Envelope ID: 9D9BC1A4-1 FBC-4C18-85AA-535BOD492A1 E documents referenced herein, on behalf of the City, and by virtue of an amendment mutually signed by Seller, provided such modifications do not constitute a material change to this Agreement. k. Extent of Agreement. Each party acknowledges that they have read and fully understand the contents of this Agreement. This Agreement represents the entire and integrated agreement between the parties with respect to the subject matter hereof and supersedes all prior negotiations, representations, or agreements, either written or oral. This Agreement may be modified only by written instrument duly authorized and executed by both the City and the Seller. I. Counterparts. This Agreement may be executed in duplicate counterparts, each of which shall be deemed an original, but all of which, when taken together, shall constitute one and the same instrument. (SIGNATURES FOLLOW ON THE NEXT PAGE.) LIUUU,D1y11 CIIVCIUFIC IU. SUODlHrO-H�HV-YOV y-.yLJ C-GH I`4J.7VJVHrIi DocuSign Envelope ID: 9D9BC1A4-lFBC-4C18-85AA-535BOD492A1E IN WITNESS WHEREOF, the parties have executed this Agreement at Fresno, California, on the Effective date of this Agreement as defined above. CITY OF FRESNO, A California municipal corporation DuuuSigned by: 4/24/2023 Georgeanne A. White Date City Manager APPROVED AS TO FORM: ANDREW JANZ City Attorney By: �Iq 641 aw r Tracy N P rvanian Date SupervisW g Deputy City Attorney ATTEST: TODD STERMER, CMC City Clerk 6orul,�nLw by: -r "l U� 4/24/2023 By: tIn A b Date Attachments: Exhibit A — Legal Description Exhibit B — EVSE Agreement SELLER, KUSH HOSPITALITY INC., a California Corporation [_o0CU$i0"ed by: By: tan Pahl ES$AFMCC.E: 74 20 Nrupen Patel Name. Title: President (If corporation or LLC., Board Chair, Pres. or Vice Pres.) Date: 4/13/202 3 By: 5DocuSigncd by: aRV1 Na EG n�.JC:.L �•. •:±U.. ]atin Patel Name: Title: secretary (If corporation or LLC., CFO, Treasurer, Secretary or Assistant Secretary) M Date: 4/13/2023 UVI.UJIylI CI Ivinuyu IU. UUOD/Mf O-M7MV-'#OU7'.7LJC-Lf11`FJyUJYMrI� DocuSign Envelope ID: 9D9BC1A4-lFBC-4CI8-85AA-535BOD492A1E EXHIBIT A LEGAL DESCRIPTION REAL PROPERTY IN THE CITY OF FRESNO, COUNTY OF FRESNO, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS: PARCEL A OF PARCEL MAP NO. 97-11, IN THE CITY OF FRESNO, COUNTY OF FRESNO, STATE OF CALIFORNIA, ACCORDING TO THE MAP THEREOF RECORDED IN BOOK 60 PAGE 7 OF PARCELS MAPS, FRESNO COUNTY RECORDS. APN 434-143-06 10 UUVUJIyll CIIVCIUpt: IU. �UOC/Fir O-F1.7FiU-40Uy-�LJC-L/i I'FJyV J'#F1r l.. EXHIBIT B LIUUUJIIJ.II CI IVCIUpC IL/. t7UOD/I'F0Z7U04MrlJ 4 C� ZERO / ^.^�j�` �{ M PA -�`J.r1 So K]1 . YRL LlI H Illl THIS EVSE PURCHASE, INSTALLATION AND SERVICE AGREEMENT (this "Agreement"), effective as of the effective date (the "Effective Date"), by and among Zero Impact Solutions, Inc., a California corporation, located at 3100 Airway Ave # 127 Costa Mesa CA 92626 (hereinafter "ZIS"); Zero Impact Builders, Inc., a California corporation, located at 3100 Airway Ave # 127 Costa Mesa CA 92626 (hereinafter "ZIB, Contractor"); Kush Hospitality Inc, at 4061 N BLACKSTONE AVE, FRESNO CA 93726 and KS Hospitality Inc at (hereinafter "Customer"), at 7177 N ELLENDALE AVE, FRESNO CA 93722. Accordingly, ZIS, Contractor, and Customer are each a "Party" and/or collectively the "Parties" to this Agreement. RECITALS WHEREAS, ZIS is a company that is in the business of providing electrical equipment, including but not limited to Electric Vehicle Supply Equipment as defined herein, as well as providing Cloud Services, Warranties and Support WHEREAS, ZIB is a Contractor with CSLB License Number 1068228 that performs certain construction, building, and installation services as set forth in the Statement of Work defined below. WHEREAS, the Customer is the owner and/or operator of real property located at 4061 N Blackstone Ave, FRESNO, CA 93726, and 6730 N Blackstone Ave, FRESNO, CA 93710 and seeks to purchase Electric Vehicle Supply Equipment and Electrical Equipment as described in the Agreement, and the Statement of Work attached hereto, to be installed on Customer's real property and serviced as described herein. NOW, THEREFORE, in consideration of the mutual promises, covenants and agreements set forth herein and other good and valuable consideration, the receipt and sufficiency of such consideration being hereby acknowledged by the parties to this Agreement, the parties hereby agree as follows: 1. Definitions. 1.1. "Statement of Work" or "SOW" means the Scope of Work to be performed by Contractor and the services, EVSE, and/or Electrical Equipment to be provided by ZIS. 1.2. Electric Vehicle Supply Equipment "EVSE" refers to the electric vehicle charging hardware which are being provided, installed, and serviced, at the Installation Site. 1.3. "Electrical Equipment" is the transformer(s) and electrical panel(s); switches, breakers and electrical components needed to enable the EVSE functioning, provided and installed under the terms of this Agreement. 1.4. "Installation" refers to the Contractor's actual labor and construction involved in affixing the EVSE and the Electrical Equipment at the Installation Site and connecting it to existing infrastructure and rendering functional according to the Statement of Work. 1.5. "Installation Site" refers to the physical location where the equipment and services provided within this Agreement will be permanently installed as specified in the SOW. I' 1 1 P a g e T Uul:uo,yi CIIvuiuytC IL/. znjODlh1r0-F17MU-'#OV"J-7LJC-LM 14J�VJ4F1r l� ZERO %ER LJ� i MP ` CT L/SO LUTIONS 1.6. "EVSE Manufacturer Warranty" is the charging hardware manufacturer warranty which is issued for each charger and is assigned to Customer. 1.7. "EVSE Extended Service Plan" is the maintenance and servicing plan that extends for 5 years and offers added protection and support for EVSE and is included in the SOW 1.8. "Cloud Services" are a set of mandatory services provided remotely by ZIS through a third -party licensed platform, which are required for the functioning of the EVSE. 1.9. "California Electric Vehicle Infrastructure Project (CALeVIP) Rebate" is the California State rebate program offered to fund costs associated with herein EVSE initiative and used to pay for customer costs incurred in this Agreement 1.10. "Reporting Rights" means the right to report and register the exclusive ownership of the Environmental Attributes in compliance with federal, state, or local law, if applicable, and to a federal or state agency or any other party at the Buyer's discretion, and include without limitation those Reporting Rights accruing under Section 1605(b) of the Energy Policy Act of 1992 and any present or future federal, state, or local law, regulation or bill, and any voluntary, international, or foreign emissions trading program. 1.11. "Environmental Attributes" means all aspects, claims, characteristics and benefits associated with the generation of a quantity of electricity by a Generation Facility, other than the energy produced, embodied in the Product REC pursuant to, and in compliance with, the Applicable Standard, and includes all the environmental, power source, and emission characteristics, credits, allowances, reductions, offsets, and benefits associated with the generation of electricity from a Generation Facility and its displacement of generation from non-renewable energy resources, and any avoided emissions of carbon dioxide, methane, and other greenhouse gases, but does not include, unless specifically required for compliance with the Applicable Standard (i) any avoided emissions of nitrogen oxides (NOx) during enforcement seasons for states participating in the Environmental Protection Agency's NOx Budget Trading Program, (ii) production tax credits and investment tax credits associated with the Generation Facility, (iii) any liabilities, including adverse wildlife or environmental impacts or, (iv) unless the Parties have expressly agreed otherwise, tradable emission allowances or other entitlements to produce emissions issued by a governmental authority and allocated to the Generation Facility on a basis other than actual generation of avoided emissions associated with the generation of electricity by the Generation Facility. 1.12. "Effective Date" is the date of written customer Approval of the Statement of Work to be completed once the Rebate Funds are approved by state program. 2. Installation. 2.1. ZIS agrees to furnish the EVSE and Electrical Equipment, which will be installed by Contractor as described in the SOW in accordance with the specifications and installation methodology set forth therein. In addition, Contractor shall be responsible for the work specified in the drawings and specifications outlined in the SOW. 2.2. SOW Completion. ZIS and Contractor shall complete the Statement of Work within 60 (sixty) days of the Funds Approval email sent by the CALeVIP program administrators and Customer shall spare no effort in facilitating that completion. Iku 5 2 1 P a g e wuuuoIIyII CIIVCIup" ILI. �LIOD/F1f O-/1y/1U-40Uy-7LJC-G/114J�VJYMrIJ T �� ZERO IMPACT SOLUTIONS 2.3. Approvals, Certificates, Permits and Licenses. Contractor shall, with the reasonable assistance of Customer, secure all design, engineering, construction and installation and operating approvals, certificates and permits that may be required for the proper execution and completion of the work. 2.4. Time of Performance. Unless otherwise provided in writing, Contractor agrees to install the EVSE along with the Electrical Equipment in accordance with the dates set forth in the SOW. Customer acknowledges that the rebates, as described in section 2.4 herein, expire within twelve (12) months of their issuance. Therefore, Customer must provide access to the Installation Site and allow Contractor to begin and finish work on the Installation during such twelve (12) month period. 2.5. Rebate as Form of Payment. Customer agrees to authorize ZIS to apply and obtain a California Electric Vehicle Infrastructure Project (CALeVIP) Rebate [F-00073 and F- 00074] on behalf of the Customer's organization wherein ZIS and Contractor agree to accept these Rebates(s) as a form of payment. Customer agrees to sign rebate form sent upon rebate approval as Schedule B within 10 days of approval. The rebate amount shall be deducted from the total amount of monies due under the Statement of Work SOW. 2.6. Assignment of Rebate. In consideration for services contemplated under this Agreement, and as further embodied in the SOW to be attached as Schedule A within 60 (Sixty) days of approval and reservation of the rebate amount, Customer hereby assigns all right, title, interest, and benefit in the Rebate Applications, rebates, discounts, credits, and any and all monies therefrom to ZIS. Accordingly, ZIS hereby assumes all of Customer's interests, rights, duties and obligations in the Rebate Applications and processing therewith. In the event the Rebate Applications or rebates therefrom are rejected, or partially unpaid for any reason whatsoever, the Customer remains fully responsible and obligated to pay the entire balance due as set forth in the SOW. If for any reason CALeVIP submits the rebates directly to Customer or in Customer's name alone, Customer will transfer and endorse any rebate payment to ZIS within seven (7) days of receipt. If Customer is unable to sign over the Rebate Check to ZIS within 7 days, Customer shall issue a check or payment to ZIS for the amount of the rebate check. Customer shall provide all necessary documents and signatures as necessary, to facilitate this assignment. 2.7. Equipment Title and Warranty. Title and warranty to the EVSE and Electrical Equipment shall pass to Customer upon receipt of rebate payment by ZIS, unless the rebate does not cover the full amount of the cost, in which case title and warranty shall pass upon receipt of the full payment. 2.8. Changes in Specifications. Customer, by a writing signed by Customer and sent to ZIS and/or Contractor, shall have the right at any time to make changes in the specifications of any goods, materials, and/or services covered by this Agreement, or the place of inspection, or acceptance. Upon receipt of any such notice, ZIS and/or Contractor shall proceed promptly to make such changes in accordance with the terms of such notice. Contractor shall deliver to Customer, within ten (10) days of receipt of Customer's change notice, a statement showing the effect of any such change in the cost of, and/or the time required for performance of this Agreement. Customer's 3Page ,1p$ I� LIUUU,D1y1I CI MV IUPU IU..7U0D1Mr0-/'1.7/1UWOUy-�LJC-GF11'4JyUJ'-FHrI+ ZERO )ER^ I . 1 PACT SOLUTIONS failure to object to provisions contained in any communication from ZIS and/or Contractor shall be deemed an acceptance of such provisions. ZIS and/or Contractor has the right to make substitutions and modifications in the specifications of the hardware sold, provided that such substitutions or modifications will not materially affect overall product performance. 2.9. Excusable Delays. Neither party shall be liable for any failure or delay in performance under this Agreement (other than for delay in the payment of money due and payable hereunder) to the extent said failures or delays are proximately caused by causes beyond that party's reasonable control and occurring without its fault or negligence. Dates by which performance obligations are scheduled to be met will be extended for a period of time equal to the time lost due to any delay so caused. 2.10. Subcontracts and Subcontractors. Contractor may hire or engage one or more subcontractors to perform any or all its obligations under this Agreement and respective SOW; provided, however, that Contractor shall in all cases remain primarily responsible for all its obligations. 2.11. Insurance. Contractor shall not commence work under this Contract until it has obtained all insurances required as hereinafter. 2.12. Meetings and Reports. Contractor, and relevant subcontractors if necessary and if requested by Customer, shall schedule and attend regular progress meetings with Customer for the purpose of reviewing progress of the work. 2.13. Software and Proprietary Rights. All software supplied is proprietary to ZIS and/or its licensors. Use of the software is subject to the terms of the applicable end user agreement. 2.14. Limitation of Liability. Neither ZIS, Contractor, nor its suppliers will be liable for any loss, damages or penalties resulting from delay in delivery when such delay is due to causes beyond the reasonable control of ZIS and/or Contractor, including but not limited to supplier delay, force majeure, act of God, labor unrest, fire, explosion or earthquake. In any such event, the delivery date will be deemed extended for a period equal to the delay. ZIS, CONTRACTOR, AND ITS SUPPLIERS' LIABILITY ARISING OUT OF OR RELATED TO THIS AGREEMENT AND/OR SALE WILL BE LIMITED TO THE REFUND OF THE HARDWARE PURCHASE PRICE. IN NO EVENT WILL ZIS, CONTRACTOR, OR ITS SUPPLIERS BE LIABLE FOR COSTS OF PROCUREMENT OF SUBSTITUTE HARDWARE BY CUSTOMER OR FOR ANY SPECIAL, CONSEQUENTIAL, INCIDENTAL OR INDIRECT DAMAGES (INCLUDING WITHOUT LIMITATION LOSS OF PROFIT) WHETHER OR NOT ZIS HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH LOSS, HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY ARISING OUT OF THIS AGREEMENT. THIS EXCLUSION INCLUDES ANY LIABILITY THAT MAY ARISE OUT OF THIRD -PARTY CLAIMS AGAINST CUSTOMER. THESE LIMITATIONS SHALL APPLY NOTWITHSTANDING ANY FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED REMEDY. 3. Cloud Services. Customer hereby grants ZIS and any third- party platforms that ZIS is licensing the right to operate one or more EVSE units on each Installation Site referenced in the SOW during the term of this Agreement. 4. Environmental Attributes. The Customer agrees to transfer and allocate, without limitation, any and all Reporting Rights to ZIS with respect to obtaining and securing 41 Page os 1111'.1 wuuuo IIJ.II CIIVCIVFJt7 IL). �VOO/FirO-M�MU-40V �-yLJC-LMIVJy VJ4Mrl, � �� ZERO PACT SOLUTIONS Environmental Attributes. Accordingly, all Environmental Attributes shall remain the sole property of ZIS. These Environmental Attributes are hereinafter referred to as "Activity Credits" and include without limitation, renewable identification numbers under the federal Renewable Fuel Standard, greenhouse gas emission reduction credits and allowances (whether direct or indirect), emission units or attributes, renewable energy attributes, renewable energy certificates or RECs, "green tags," other environmental attributes, and include other incentives that arise whether such attributes are identified by federal, state or local law, by voluntary or other exchanges or registries. The Parties agree to the following terms regarding Activity Credits: 4.1. Customer transfers all Activity Credits to ZIS; 4.2. Customer agrees that Customer will not register any Activity Credit with any federal, state, local or other registry or exchange; 4.3. ZIS is authorized to use, trade, or sell Activity Credits for its sole benefit; 4.4. Customer shall reasonably cooperate by assisting ZIS in obtaining the value of any Activity Credits that are available; 4.5. In the event that the program rules or regulations authorizing Activity Credits require direct Customer participation in the relevant market, Customer shall participate as necessary and ZIS shall provide assistance to the full degree authorized by the rules and regulation; 4.6. Net revenue generated from Activity Credits will be solely the property of ZIS. Moreover, ZIS will cover all costs to generate Activity Credits; and 4.7. ZIS shall not be entitled to generate any Activity Credits in contravention of the Fuel Program(s). 5. Representations and Warranties 5.1. Each Party represents and warrants that it has full power and authority to enter into and perform this Agreement and that the person signing this Agreement on its behalf has been properly authorized to enter this Agreement. 5.2. ZIS and Contractor represent and warrant that: 5.2.1. The performance of its obligations and delivery of the services to Customer and end users will not violate any applicable laws or regulations; 5.2.2. It has sufficient right and authority to grant to Customer all rights that ZIS and/or Contractor grant under this Agreement; 5.2.3. It will perform the services in a professional and workmanlike manner consistent with industry standards reasonably applicable to the performance thereof; and 5.2.4. It will comply at all times with all applicable laws and regulations related to the provision of the services. 5.3. Customer acknowledges that ZIS is not a contractor, and that all work to be performed with respect to any construction, building, and installation of the EVSE and Electrical Equipment, as described herein and the SOW attached hereto, will be performed by Contractor. ZIS DISCLAIMS ANY AND ALL EXPRESS AND IMPLIED WARRANTIES AS TO THE CONTRACTOR'S MATERIALS, SERVICES, AND WORKMANSHIP PROVIDED BY THE CONTRACTOR AS PER THIS AGREEMENT AND THE SOW ATTACHED HERETO. CUSTOMER ACKNOWLEDGES THAT IT HAS NOT RELIED ON ANY EXPRESS OR IMPLIED WARRANTIES FROM ZIS AS TO CONTRACTOR'S MATERIALS, SERVICES, AND lk� 0$ 5 1 P a g e LJUUUJILy.II CIIVCIUFJ, IL/. ZERO IMPACT SOLUTI 7NS WORKMANSHIP PROVIDED BY THE CONTRACTOR AS PER THIS AGREEMENT AND THE SOW ATTACHED HERETO. 5.4. FURTHERMORE, CONTRACTOR DISCLAIMS ANY AND ALL EXPRESS OR IMPLIED WARRANTIES AS TO ZIS'S SERVICES, EVSE, AND/OR ELECTRICAL EQUIPMENT PROVIDED BY ZIS AS PER THIS AGREEMENT AND SOW. CUSTOMER ACKNOWLEDGES THAT IT HAS NOT RELIED ON ANY EXPRESS OR IMPLIED WARRANTIES FROM CONTRACTOR AS TO THE SERVICES, EVSE, AND/OR ELECTRICAL EQUIPMENT PROVIDED BY ZIS PER THIS AGREEMENT AND SOW. 5.5. EXCEPT FOR ANY WARRANTY SPECIFICALLY IDENTIFIED AS AN EXPRESS WARRANTY IN THIS AGREEMENT, ZIS AND CONTRACTOR MAKE NO WARRANTIES, EXPRESS OR IMPLIED, BY STATUTE OR OTHERWISE, WITH RESPECT TO ANY SERVICES, PRODUCTS, TECHNOLOGY, INTELLECTUAL PROPERTY, MATERIALS OR INFORMATION PROVIDED, WHETHER ARISING BY COURSE OF DEALING OR PERFORMANCE, CUSTOM, USAGE IN THE TRADE OR PROFESSION OR OTHERWISE, INCLUDING BUT NOT LIMITED TO, IMPLIED WARRANTIES OF NONINFRINGEMENT, MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. ALL SUCH WARRANTIES ARE EXPRESSLY DISCLAIMED. EXCEPT FOR ANY WARRANTY SPECIFICALLY IDENTIFIED AS AN EXPRESS WARRANTY, CUSTOMER ACKNOWLEDGES AND AGREES THAT IT HAS RELIED ON NO OTHER REPRESENTATIONS OR WARRANTIES AND THAT NO OTHER REPRESENTATIONS OR WARRANTIES HAVE FORMED THE BASIS OF ITS BARGAIN HEREUNDER. 6. Confidentiality. Each Party acknowledges that it will have access to certain confidential information of the other Party concerning the other Party's business, plans, technology, and products, and other information held in confidence by the other Party ("Confidential Information"). Confidential Information will include all information whether in tangible or intangible form, whether or not marked or designated as confidential. Each Party agrees that it will not use in any way, for its own account or the account of any third party, except as expressly permitted by, or required to achieve the purposes of, this Agreement, nor disclose to any third party any of the other Party's Confidential Information and will take reasonable precautions to protect the confidentiality of such information, at least as stringent as it takes to protect its own Confidential Information. 6.1. Exceptions: Information will not be deemed Confidential Information hereunder if such information: 6.1.1. Is known to the receiving Party prior to receipt from the disclosing Party directly or indirectly from a source other than one having an obligation of confidentiality to the disclosing Party; 6.1.2. Becomes known (independently of disclosure by the disclosing Party) to the receiving Party directly or indirectly from a source other than one having an obligation of confidentiality to the disclosing Party; 6.1.3. Becomes publicly known or otherwise ceases to be secret or confidential, except through a breach of this Agreement by the receiving Party; 6.1.4. Or is independently developed by the receiving Party without the use of Confidential Information received from the disclosing Party. _. DS t Uuuu,Diyil CIIVCIupu iu. LION/Mr0-M�F1V-'#OVA-.7LJC'LM I�#J.7VJVF1r l+ �ZERO )ER^ I M PACT SOLUTIONS 7. Trademarks. Subject to the terms and conditions of this agreement, Customer grants ZIS and Contractor a non-exclusive, non -transferable license for the term of this agreement to use its name in ZIS's or Contractor's marketing of services. 8. Default; Remedies: ZIS and/or Contractor may terminate this Agreement at any time due to Customer's breach of this Agreement without further recourse to Customer. The occurrence of any one or more of the following events of default constitutes a breach of this Agreement by Customer: 8.1. If Customer defaults in the payment of any amounts due and such default continues after Contractor has given Customer notice 8.2. Any Party may terminate immediately if ZIS and/or Contractor estimates the total cost of everything contemplated under this Agreement is higher than the rebate amount. 8.3. If Customer, whether by action or inaction, is in default of any of its obligations under this Agreement (other than a default in the payment of any amounts due) and such default continues and is not remedied within 30 days after ZIS or Contractor has given Customer a notice specifying the same, or, in the case of a default that can be cured but not within a period of 30 days, if Customer has not (1) commenced curing such default within such 30-day period, (2) notified ZIS or Contractor of the Customer's intention to cure the default, or (3) continuously and diligently completed the cure of the default. 8.4. If ZIS and/or Contractor, whether by action or inaction, is in default of any of its obligations under this Agreement, Contractor shall have the same right to notice and an opportunity to cure the default as Customer does in Section 8.3. 9. Arbitration. Any dispute arising out of or relating to this Agreement must be resolved by arbitration administered by the American Arbitration Association under its Commercial Arbitration Rules. The award shall be final and binding on the parties and may be entered and enforced in any court having jurisdiction. The arbitration shall be held in English and the place of arbitration shall be California. There shall be one arbitrator agreed to by the parties within twenty (20) days of receipt by respondent of the request for arbitration or in default thereof appointed by the American Arbitration Association. 10. Miscellaneous. 10.1. Notices and Demands. All notices, demands, consents, approvals and other communications which are required or desired to be given by any party to another hereunder will be through email and/or LISPS certified mail: ZIS / ZIB Customer Address 3100 Airway Ave #127 4061 N BLACKSTONE AVE City, State, Zip code Costa Mesa, CA 92626 FRESNO CA 93726 Responsible Person Spiro Azkoul Nick Patel Email clients@zi.solutions nick@holidaymanagementinc.com Phone Number 818-877-77871 559-213-7189 10.2. Prior Agreements. This document is the entire, final and complete agreement of the Parties pertaining to the subject matter of this Agreement and supersedes and replaces all written and oral agreements heretofore made or existing by and between the Parties or their agents concerning this subject. 71 Page boa LJUI;UJIIyII CIIVCIUpt, IU..hLJOD/ ZERO � 14 PACT SOLUTIONS 10.3. Applicable Law and Severance. This Agreement shall be construed in accordance with and governed by the laws of the State of California, without regard to the principles of conflicts of law. If any clause or provision of this Agreement is determined by law to be illegal, invalid or unenforceable under present or future laws, it is the intention of the parties that the remainder of this Agreement will not be affected thereby. 10.4. Waiver. The failure of any party at any time to require performance of this Agreement, will in no way affect his right hereunder to enforce the same, nor will any waiver of any succeeding breach of such provision, act as a waiver of the provision itself. IN WITNESS WHEREOF, the parties have executed this Agreement as of the date set forth above. ZERO IMPACT SOLUTIONS, a California �corporation DrC Signed by' 3/29/2022 By: Spiro Azkoul Its: Chief Executive Officer ZERO IMPACT BUILDERS, a California corRgration D u ignedby: 3/29/2022 By: _r Spiro Azkoul Its: Chief Executive Officer CUSTOMER, a California corporation 3/29/2022 Dacu ned by: By: 8 80 CE41420 Nick Patey Its: Representative 8 1 P a g e p Ld C) LLJ 0 Q W r W W N ''' � J Q W O N L J w Q ix p W J ��SDSXL,� JQ Q Q U �' JQ w W pQ �U0 UNJ n S W 0 LJI-Z z F- W~ O 2 z p 0 w w Q w m LJ wN NZz w22 Id � � 2 O J 0 Z L, Z N m w N w W Q > Z � N 2 .-0 N ND � Z) Q N O FQ r Q Q Jm O S O W J W N F-Q W_ �Wo zQm Jawoc��z oU OZo3 moo DW C) iQW mz II n II LLI WaLLJg' JJWin:�ZQ J J��p NZ Lj HS wH N wQr J Q v1 S � S i O J O� U W r a Q Q O W J Z Q � w af Z Z m O _ w Z mN ONCL M:M0Jm 0�(Q/) N NZw 0 N=0 U; LLJWO OOZE 0 O �0; ~~ I'z>C� Dow �z0 FI)ui QN� wOC' wd ���0 mmd OJ ZX ONN> :2F �mw o owZ Oz �N� > �W F-F-mZ Q W F- U U U> — U W d' m J J 2 z N O D J Q W W W O F- W N 2 0 Z Q Q O m 0_ J m a Q F- O w J Q W W OW QZ 0J JamQw 0- wL'0 mW Q00 wv' zm U�<V) maa� W U LJ N U J Z Z W F-r O_ p W 0 r 0_ � 2 0 m m Q Q J Lj. O O S Q Z 2 m 2 Z W W Z LJ Q 0 F- J Q F- L, L L- Q 0 U U F- Q 0 L, F- Q O m Q w 0 Q O] U N M N (D 00 N p W N v m Z 0_ W LLI0 Q LLJ o LLJ p Q LLJ w U U z z- NQJ m O Q � W m zQ m m W Z F- LJ N z 0 DN Q LLJ w > W Jm � S' z)ZO Q -1 Nr ZUF-N MwFS-N W > >MW Q Mp~ U) QQ2 w O O p U > U w N m p W> F- O� ZJZZ F-JZtL W mF-0 N ZWO VO �Q Oa a- Qp J N a� z 0E-m m �0 LLJ DOO a LJ m W z Q r vim o_ O Uzo_ m m 0 w N J D: 0 ~ p 2 F- W 0 W U Q W N ~ (� N 0 O_ N Z CL 0- �WFS-Z Q\OQ O OvwLL N ~N0 U pUW NZ W�WO WONW � J0 ? w0 N w L�QS Z W W U W NZ m > NN N3 3 Z Q~ Q O Q= Z0�U H =LLJ N zo ZJvi= QavN Z o Jvi� z ODJm �LLINZ 3 YAWN NO_QW O �ZQ m 2(/) Q NrQ �� mZOZ r LJ L� U Q zo V) L� JUN N ZY Q J W m U Z Q W F- 0 00 0 W N Li O S O NQU() z W 0= Q(7Q ~JZ� F- J F-ULL.t Z 0W Q J3m = Q Z Q U Z Q Q N r LJ— UO W D N Q W ~� HWU W H N N V) mW L� �w 00 0 dQ n w0 W~ 0 JZ U N Z OF- JCL LL. cep 0 W O LLLI a X F= O � N > LLI JN r W � Y Zm U O� ZY WZ NUw N W F- Q w Qm m m 00 m X Q0 m p o 0 0 Ij 3w pmo LLJQf J a z W �O z �X W N w3Zo a 0m N3 ma ~QUQ Q�F-0 p� Q w p NwNZ m WNpW p p N_ W n W- �L�JI cn C) - gy m ci b o x N ~ 2 z_ r a Lu v�i o� O J o_ M M of (jd m Fn W W N H U W w W~ m0 z m >C�~pQ > Nw0 ix W r 0 Z0 cx �Z W Oz O Z O Ld �N DCL EW N� CL p Q U pW W LLI pU� Q of m ammo 0Q O L L I N U L Z V J F- L J 0 0 J J J Q J N W Q O W W W— U W r a' $ f J J F- m N J L' -, O JLLI J L� J m L� F- J O N �' d' F- I oZ Nam �w = w Nw OQ �w c=n NO�z N Np oa ,yam S��N N z X.LLJ ra aX �� a Zvi m~wa m ��' MO oQ ~� 0 O W 2 �� >w ow oz oM=M o o> >U � F-?i WZ U LJQ Q U D" p �OF-0 F-uj F-O N U � w U V) >0 U W UQ w U— Uw U� UM\LJ wN �UW WO �= 0 M W� wm O:0 Q D:W 0: 0 �W Hp �H W Y Z Q U U li Z= U 0 z DZ 0 Z Z 2 Z CL z J2 U Z� Z Z C) m OZZ OQW0 W F- zE0 pN pOC9W pW O-QQ LJ0 OMZ Z0 OU O m 0. - NCL mW Uw Z UZ 000m UZ U� m ~� W OU 0 0 J W M Z� J J 0 O W W> W W M w 2 m 0 W 0 W J Z W LL. =L)M M< 2 2 0 Q0 z0 0=w 20 0_ SO SUSZ Sw SU Oaf zO F-QO OU F- F- U ON 2 W 0_Q F-0 NF-Q F-w F-Z UQ O N M N to 00 M N Blackstone Ave. N Blackstone Ave. r IVA J v I O � I J N K Q X 44" max 48" max 15" min 48" max 5" min 48" max c c c c 0 cc n a c L a c -n 0 D 2 ? X�al� i ouU m �m D W m cn m ZX *m ;a, D m ry m � Z Z7 D �y mN m = cn �D J m m cn co it m01 m W Z ;a X, m ry 00 DLn N 00 d7 Ulcn cn C cn rn :UC7��1�70C7Z2���2zZC�1 mm m m0=mmC0 z>>0Wcncn m c��mz0O;u Z�C-��m r0 r O<OZOm;uCM;u>>m 00E: MU)M�0rr -om0 mm�m�) U zmmD>0>> m mz=C-0 -h��rnDo ToZ Dzz 0mmczzo � cn 9 D n oo D n m D n W D n M D n W D Z cn D r r D z O m m ►! O C r =I1w ►i N Ir Ai � v G p O 0 � a 91 K �p N y m fD > 3 y ° = O � O J y 4S1 N N m 1 o m < m _ n m Ro _ o m a a •2 '� o �3 o a a 3 a m N" 1D - N a f n �o'°yuEF and ` D 6 i 2 J j c c C. c 0 CC n a c L R C