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�DocuSign Envelope ID:6BDE4B89-79B8-46EA-8CDF-7CO3E2572266 N-2021-236 imunmo WORK MAY PROUEED WMOFF COMPLIANCE AGREEMENT 0-: efl o( StMovlth )LOO Tr This Compliance Agreement(hereinafter "Agreement") is made and entered into on this 0Z3 day of November 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 99 SOUTH MLK LLC, a Nevada 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 located at 938 E.2"d Street, Santa Ana, California, identified as Assessor's Parcel Number 398-473-10 (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 20, 2020, the City filed an action against the property owner, Flag Trucking, Inc., and its executive officers, Jack McClure and Dolores McClure (collectively ("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. FLAG TRUCKING, INC., et al., Case No. 30-2020-01166481-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 intend to sell the Property to 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 constitute a nuisance and 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; and WHEREAS,City acknowledges that there are no liens or other encumbrances against the Property which have been established,generated,or created by City or for the benefit of City,other than the Notice of Pendency of Action filed at the Orange County Clerk Recorder's Office against the Property on February 2, 2021. 1