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3 <br /> LOAN AGREEMENT <br /> This Loan Agreement (this “Agreement”) is entered into effective as of <br />________, 2018 (the “Effective Date”) by and between MTLG, LLC, a California limited <br />liability company, (the “Borrower”) and the City of San Leandro, a California charter city <br />(the “Lender”). Lender and Borrower are hereinafter collectively referred to as the <br />“Parties.” <br />RECITALS <br /> A. Borrower is the owner of that certain real property located at 2539 Grant <br />Avenue, San Leandro, CA 94579, APN 80G-910-15 (the “Property”). The Property is <br />more particularly described in Exhibit A, attached hereto and incorporated herein by <br />reference. <br /> B. On April 1, 2013, the Lender approved Borrower’s proposed wind energy <br />conversion project and height variance (“Project”) to be located on the Property. <br /> C. On May 8, 2013, interested persons (“Petitioners”) filed a writ of mandate <br />pursuant to the California Environmental Quality Act (“CEQA”) in Alameda County <br />Superior Court, Case No. RG13677840, alleging that Lender, in its regulatory capacity, <br />had failed to comply with CEQA and CEQA Guidelines in approving the Project (the <br />“Litigation”). <br />D. On April 14, 2014, the Alameda County Superior Court entered judgment <br />in favor of the Petitioners, and the court issued a writ of mandate to the Lender. <br />Thereafter, the court awarded Petitioner’s counsel attorney’s fees. <br />E. The Lender and Borrower appealed the award of attorney’s fees, but on <br />January 12, 2018, the Court of Appeal upheld the trial court’s award of attorney’s fees <br />and awarded Petitioner attorney’s fees for the appeal action. <br />F. Upon commencement of the Litigation, Borrower agreed to pay all costs <br />incurred by the Lender in defending approval of the Project and related litigation. The <br />Lender has expended, or has agreed to expend, $186,382.25 for appeal fees and <br />$232,425.65 in trial court fees, and Borrower owes the Lender an additional $36,299.46 <br />in other outstanding fees (collectively, “Litigation Costs”). <br />G. Lender has agreed to pay the Litigation Costs, and Borrower has agreed <br />to repay to Lender an amount equal to the Litigation Costs, totaling Four Hundred Fifty <br />Five Thousand One Hundred Seven Dollars and Thirty Sixty Cents ($455,107.36.) (the <br />“Loan”) pursuant to the terms and conditions hereof for the purposes contained in this <br />Agreement. <br />H. Concurrently herewith, Borrower shall execute a promissory note (the <br />“Note”) in the amount of the Loan, and a Deed of Trust, Assignment of Rents, Security <br />Agreement and Fixture Filing (“Deed of Trust”), which shall provide Lender with a