CARL P. & MARION B. STEVENS TRUST

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COMPLIANCE AGREEMENT This Compliance Agreement (hereinafter "Agreement") is made and entered into on this day of July 2021 ("Effective Date") by and between CITY OF SANTA ANA, a charter City and municipal corporation, and THE PEOPLE OF THE STATE OF CALIFORNIA, by the City Attorney for the City of Santa Ana (hereinafter "City"), and SIGNATURE SPORTS 1, LLC, a California limited liability company (hereinafter "Buyer"). City and Buyer are also collectively referred to as "the Parties" herein. RECITALS WHEREAS, the City of Santa Ana has determined the property, which encompasses 904, 914, and 936 East 2nd Street, as well as two parcels without addresses, is located on Assessor's Parcel Numbers (APN) 398-473-04, 398-473-08, 398-473-09, and 398-473-12 (the "Property") to be a public nuisance and is being maintained in violation of the Santa Ana Municipal Code ("SAMC"), requiring immediate rehabilitation and/or repairs; and WHEREAS, on October 29, 2020, the City filed an action against the property owner, CARL P. & MARION B. STEVENS TRUST, under declaration of trust dated September 15,1989; RON STEVENS, as co -trustee; and JUDY WISLOCKI as co -trustee ("Defendants") in the Superior Court of the State California, County of Orange, Central Justice Center District known as City of Santa Ana, et al. v. CARL P. & MARION B. STEVENS TRUST, et al., Case No. 30-2020- 01167808-CU-MC-NJC (the "Action"). The City's complaint in the Action includes a prayer for injunctive relief, civil penalties, attorneys' fees and costs, and other equitable relief against Settling Defendants; and WHEREAS, Defendants are the Co -Trustees of the Carl P. & Marion Stevens Trust (the "Trust") and, as such Co -Trustees, intend to distribute the Property to a beneficiary of the Trust, James Stevens. James Stevens intends to then transfer the Property to SIGNATURE SPORTS 1, LLC, a California limited liability company ("Buyer"). Buyer understands and agrees that it will assume all liabilities and claims associated with the Action; and WHEREAS, Buyer acknowledges that the Property contains multiple Santa Ana Municipal Code ("SAMC") violations and understands and acknowledges that these violations must be abated in order for the Property to be in compliance with the SAMC; and WHEREAS, the Parties seek to enter into this Agreement to ensure that Buyer will bring the Property into compliance with State laws and SAMC; and WHEREAS, concurrently with this Agreement, Defendants have entered into an agreement with City to settle the Action as set forth in Exhibit "A" and incorporated herein by this reference ("Settlement Agreement"); and WHEREAS, this Agreement is a condition precedent to settle all disputes with Defendants with respect to the Action.