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HomeMy WebLinkAbout00498C - VIP MOTOR CARS INC/PARTNERS LAND DEVELOPMENT LLC DDA APN 681070016 VIP M6,tor Cars Inc./Partners _CHICAGO TITLE COMPANY Land Development LLC DDA a78-000 Fred Waring Drive, SUITE 103, PALM DESERT, CALIFORNIA 92211 AGREEMENT #0498C (760)345-0750 Fax (760)772-8463 Res. 1286, 7-5-05 November 9,2005 JOHN S. RAYMOND THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS 3200 E.TAHQUITZ CANYON WAY PALM SPRINGS, CALIFORNIA 92263 RE:vacant land APN 681-070-016, Palm Springs, CALIFORNIA V Escrow No: 52050042 Dear Mr. Raymond, In connection with the above referenced escrow,we enclose the following items: PLEASE SIGN AND RETURN THE FOLLOWING, RECEIPT FOR SCHDULE B DOCUMENTS FOR APN 681-070-016 If we can provide any additional information or answer any questions you may have, please give us a call. Thank you for choosing Chicago Title Company, Since�rely, Cf1 CAG IT/LE COMPANY Linda S41ido —"Escrow Officer Linda M. Salcido Escrow Manager CHICAGO TITLE 78.000 Fred Waring Dr.,Suite 103 ® Palm Desert,CA 92211 (760)345.0750 x 210 E-mail:Linda.Salcido®ctt.com Fax (760) 772.8463 RILTP-.09/22/9ebk ESTOPPEL CERTIFICATE The City of Palm Springs ("fity"), as successor agency to the Community Redevelopment Agency Of The City Of Palm Springs ("A en ') under (i) that certain Declaration of Covenants, Conditions, And Restrictions recorded in the official records of the County of Riverside on May 4, 2006 as document number 2006-0324534 ("Declaration') by and between Agency, VIP Motor Cars, Ltd., a California corporation wholly owned by VIP Motor Cars Acquisitions, Inc., a California corporation (collectively "Dealer") and Partners Land Development, LLC, an Arkansas limited liability, company ("Developer"; Developer and Dealer are collectively referred to as "Declarant"), (ii) that certain Grant Deed recorded in the official records of the County of Riverside on May 4, 2006 as document number 2006-0324533 ("Grant Deed") granting the real property described thereunder ("Property') to Developer, and (iii) that certain 2005 Disposition and Development Agreement ("DDA") dated October 27, 2005 by and between Agency and Dealer, hereby certifies to First American Title Insurance Company ("Title Company") and to Indigo Properties Palm Springs, LLC, a Delaware limited liability company (`Buyer"), as follows: (1) That, to the knowledge of City, neither Declarant nor the Property is in violation of any of the terms and conditions of the Declaration, the Grant Deed, or the DDA (collectively, "Restrictions"); (2) That, to the knowledge of City, under the Restrictions no breach or default by Declarant or the Property exists, and no event has occurred that, with the passage of time or notice, would constitute such a breach or default by Declarant or the Property. This Estoppel Certificate shall not be relied upon and is not intended for the benefit of any person or entity other than Title Company and Buyer, and their permitted successors and assigns. All statements made by City are made as of the date of the Estoppel Certificate and City has no duty or obligation to supplement or update any such statements after the date of this Estoppel Certificate. This Estoppel Certificate may only be used to estop City from asserting a position inconsistent with the statements set forth herein and shall not be used as a basis for imposing any affirmative obligation or liability upon City. [Signature page follows] BMW of Palm Springs Real Estate-City Estoppel Certificate(00304134-2) ORIGINAL BID 1 ' I-WR AGREEMENT Signature Page to Estoppel Certificate EXECUTED THIS IO tay of AV I u.jxk 2016. CITY OF PALM SPRINGS,AS SUCCESSOR AGENCY TO THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PAL S Name: Its: Executive director ATTEST: APPROVED QQh�6b 1• �.o Ao�g� e: s: Agency Secretary APPROVPDO FORM: By: Name: Its: Counsel BMW of Palm Springs Real Estate-City Estoppel Certificate(00304134-2) 2 2016-0242399 RECORDING REQUESTED BY: 06/14/2016 12:06 PM Fee: $ 0.00 CITY OF PALM SPRINGS Page 1 of 7 Recorded in Official Records County of Riverside AND WHEN RECORDED MAIL TO: Peter Aldana Assessor-County �tClerk-Recorder City of Palm Springs 'III I'�11UANI�11{�����iT.��1�1'�.I111'I III P. O. Box 2743 R q Exam: Palm Springs, CA 92263 Page DA PCOR Misc Long RFD 1st Pg adtl Pg Cen CC Attn: Office of the City Clerk SIZE NCOR SMF NCHG T: Filing fee EXEMPT per Government Code 6103 CERTIFICATE OF COMPLETION VIP MOTOR CARS ACQUISITION, INC AND PARTNER LAND DEVELOPMENT LLC A0498c Title of Document THIS AREA FOR RECORDER ' S USE ONLY THIS PAGE ADDED TO PROVIDE ADEQUATE SPACE FOR RECORDING INFORMATION ($3.00 Additional Recording Fee Applies) FREE RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City of Palm Springs in its capacity as Successor Agency to the Community Redevelopment Agency of the City of Palm Springs 3200 E. Tahquitz Canyon Way Palm Springs, CA 92262 Attention: Executive Director (Space Above This Line for Recorder's Office Use Only) CERTIFICATE OF COMPLETION koW (, WHEREAS, by that certain 2005 Disposition and Development Agreement ("Agreement") dated October 27, 2005, by and between the COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, a public body, corporate and politic ("Agency"), and VIP MOTOR CARS, LTD, a California corporation wholly owned by VIP MOTOR CARS ACQUISITION, INC., a California corporation (collectively "Dealer") and PARTNER LAND DEVELOPMENT, LLC, an Arkansas LLC ("Developer"), Developer has agreed to develop that certain real property situated in the City of Palm Springs, California, described on Exhibit"A" attached hereto and made a part hereof; and WHEREAS, as referenced in the Agreement, Agency shall furnish Developer with a Certificate of Completion upon completion of construction and development, which certificate shall be in such form as to permit it to be recorded in the Official Records of the County Recorder of the County of Riverside, California; and WHEREAS, the Agreement provided for certain covenants to run with the land, which covenants were incorporated in the Deed (as defined in the Agreement) or in that certain Declaration of Covenants, Conditions and Restrictions recorded as Instrument No. 2006- 0324534 of the Official Records of the Riverside County Recorder ("Declaration"); and WHEREAS, this Certificate of Completion shall constitute a conclusive determination by Agency of the satisfactory completion by Developer of the construction and development required by the Agreement and of Developer's full compliance with the terms of the Agreement with respect to such construction and development, but not of the Deed nor of the Declaration, the provisions of which shall continue to run with the land pursuant to their terms; and WHEREAS, Agency has conclusively determined that the construction and development on the real property described in Exhibit "A" required by the Agreement has been satisfactorily completed by Developer in full compliance with the terms of the Agreement. NOW, THEREFORE, 1. The improvements required to be constructed have been satisfactorily completed in accordance with the provisions of said Agreement. 2. This Certificate of Completion shall constitute a conclusive determination of satisfaction of the agreements and covenants contained in the Agreement with respect to the obligations of the Developer, and its successors and assigns, to construct the improvements and the dates for the beginning and completion thereof. 3. This Certificate of Completion shall not constitute evidence of Developer's compliance with the Deed or the Declaration, the provisions of which shall continue to run with the land. 4. This Certificate of Completion shall not constitute evidence of compliance or satisfaction of any obligation of the Developer to any holder of a mortgage or any insurer of a mortgage securing money loaned to finance the improvements or any part thereof. 5. This Certificate of Completion is not a Notice of Completion as referred to in California Civil Code Section 3093. 6. Except as stated herein, nothing contained in this instrument shall modify in any way any other provisions of the Agreement or any other provisions of the documents incorporated therein. IN WITNES WHEREOF, the Agency has executed this Certificate of Completion this day of Xib . CITY OF PALM SPRINGS IN ITS CAPACITY AS SUCCESSOR AGENCY TO THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS By: Executive Director ATTEST: — APPROVED BY C.R.A. gency Secretary APP O AST�O�FORQM: Agency Counsel CONSENT TO RECORDATION PARTNER LAND DEVELOPMENT, LLC, an Arkansas corporation, ("Developer") defined herein and the owner of the fee title to the real property legally described herein, hereby consents to the recordation of this Certificate of Completion against the real property legally described herein. DEVELOPER PARTNER LAND /DEVELOPMENT, LLC By: / Its: M Date: C lei By: Its: VIP MOTOR CARS, LTD. A CALIFORNIA CORPORATION WHOLLY OWNED BY VIP MOTOR CARS ACQUISITION, INC., A CALIFORNIA CORPORATION (COLLECTIVELY "DEALER"), hereby consents to the recordation of this Certificate of Completion against the real property legally described herein. DEVELOPER VIP MOTOR CARS, LTD. By: S: Date: By: Its: ACKNOWLEDGMENT 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. 4-kaA sas State of Gefffo n County of PwlaSKi On JCMte /0,lQi6 before me,_ c w4r4 1�. &4�er / /V491� vy (here insert name and title of the off r) personally appeared J.ery John son who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) 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. '.. .M1�`: MYCOWASSION��1937 WITNESS my hand and official seal. = - EXPIRES:Juy9.2019 .`', •p�"` PulaskiCoway Signature C�d�. �.`'� (Seal) VIP MOTORS DDA LEGAL DESCRIPTION OF SITE ALL THAT PORTION OF THE WEST ONE HALF OF THE SOUTHEAST ONE QUARTER OF THE NORTHWEST ONE QUARTER OF SECTION 30, TOWNSHIP 4 SOUTH; RANGE 5 EAST, SAN BERNARDINO BASE, ALSO KNOWN AS ALLOTMENT 55 OF THE AGUA CALIENTE BAND OF CAHUILLA INDIANS AS RECORDED IN THE BUREAU OF INDIAN AFFAIRS, DESCRIBED AS FOLLOWS. BEGINNING AT THE SOUTHWEST CORNER OF SAID WEST ONE HALF, THENCE NORTH 000-05'-46" WEST ALONG THE WEST LINE OF SAID WEST ONE HALF A DISTANC OF 681.17 FEET TO A POINT ON THE SOUTHERLY LINE OF THE COUNTY HIGHWAY, NOW KNOWN AS EAST PALM CANYON DRIVE, AS ACCEPTED BY THE BOARD OF SUPERVISORS OF RIVERSIDE COUNTY, CALIFORNIA BY MINUTE BOOK 27 AT PAGE 10, SAID POINT BEING 40.00 FEET MEASURED AT RIGHT ANGLES FROM THE CENTERLINE OF SAID EAST PALM CANYON DRIVE; THENCE SOUTH 730-00'-00"EAST AND PARALLEL TO SAID CENTER LINE A DISTANCE OF 690.45 FEET TO THE EAST LINE OF SAID WEST ONE HALF; THENCE SOUTH 000-03'-21"EAST ALONG SAID EAST LINE A DISTANCE OF 477.80 FEET TO THE SOUTHEAST CORNER OF SAID WEST ONE HALF; THENCE SOUTH 890-52'-11" WEST ALONG THE SOUTH LINE OF SAID WEST ONE HALF, A DISTANCE OF 659.60 FEET TO THE POINT OF BEGINNING. CONTAINING 8.78 ACRES SUBJECT TO ANY EASEMENT OF RECORD IF ANY. ACKNOWLEDGMENT OF INSTRUMENT (Cal. Civil Code Section 1181) State of California ) County of Riverside ) ss. City of Palm Springs ) On June 2, 2016, before me, JAMES THOMPSON, CITY CLERK, CITY OF PALM SPRINGS, CALIFORNIA, personally appeared DAVID H. READY, who I personally know is the CITY MANAGER of the CITY OF PALM SPRINGS whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his official and authorized capacity on behalf of the City of Palm Springs, a California Charter City. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. Witness my hand and the official seal of the City of Palm Springs, California, this 2ch day of June, 2016. P`M Sp4 iy c u m OIIOppi[O c Signature: MES THOMPSON' CITY CLERK City of Palm Springs, California Title or Type of Document Certificate of Completion —A0498C , r , DOC # 2006-0324533 Record+-,-, n- luested By 05/04/2006 08:00R PeeoNC CHICAGO i COMPANY Page 1 of s ooc T Tax PaSd Retarded in officaal Records County of Riverside FREE RECORDING REQUESTED BY Larry W. Ward AND WHEN RECORDED MAIL TO: Assessor, Cc.,nty clerk a Recorder Community Redevelopment Agency I��I (I I hit �I �II Ilfll� l�l�l III"I ���III of the City of Palm Springs 3200 E. Tahquitz Canyon Way M 5 U FnGE SIZe CA F^G NOOOR SMF MIGC. Palm Springs, CA 92262 - Attn: Executive Director /` J 11 L COPY _ONG Ne=NNO NCHG I EXAM 7P e /� (Space Above This Line for Recorder's Officc Usc Only) (Exempt from According Fec per Gov . Co §6103) GRANT DEED LA FOR A VALUABLE CONSIDERATION, the receipt of which is hereby acknowledged, the COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, a public body, corporate and politic ("Grantor") acting under the Community Redevelopment Law of tale State of California, hereby grants to PARTNERS LAND DEVELOPMENT, LLC, an Arkansas limited liability corporation ("Grantee"), the real property, hereinafter referred to as the "Site," in the City of Palm Springs, County of Riverside, State of California, as more particularly described in Exhibit "A" attached hereto and incorporated herein by this reference. As conditions of this conveyance, Grantee covenants by and for itself and any successors- in-interest for the benefit of Grantor and the City of Palm Springs, a municipal corporation, as follows: 1. Governing Documents. The Site is being conveyed: (i)pursuant to a Disposition and Development Agreement ("DDA") entered into by and between Grantor and Grantee dated October 27, 2005; and (ii) subject to the terns of the DDA, this Deed, the CC&Rs, and the Redevelopment Plan, as those terns are defined in the DDA. The DDA and the Redevelopment Plan are public records on file in the office of the City Clerk of the City of Palm Springs, located at 3200 E. Tahquitz Canyon Way, Palm Springs, California 92262, and arc incorporated herein by this reference. Any capitalized terms not defined herein shall have the meanings ascribed to them in the DDA. Grantee covenants and agrees for itself and its successors and assigns to develop the Site in accordance with the DDA and thereafter to use, operate and maintain the Site in accordance with the Redevelopment Plan, this Deed, and the CC&Rs. The Site is also conveyed subject to casements and rights-of-way of record and other matters of record. In the event of any conflict between this Deed and the DDA, the provisions of the DDA shall control. 2. Uses. Grantee on an interim basis, prior to the commencement of construction of Phase I of the Project, Developer may use the Site for parking purposes. After commencement of construction of Phase 1, pursuant to the Schedule of Performance, Developer may only use the Site for automobile, truck, or other vehicle franchise purposes as part of a regional auto dealer, consistent with the terms, covenants and conditions as set forth in the DDA and the CC&Rs; provided that with Grantor's approval, which approval shall not be unreasonably withheld, Grantee may change the use of the Site. In considering whether to grant approval, Grantor may consider those factors set forth in Section 303 of the DDA. The fleet sales and vehicle leases of VIP MOTOR CARS, LTD, a California corporation, wholly owned by VIP MOTOR CARS ACQUISITION, INC., a California corporation (collectively "Dealer") shall be made from the re a Site to maximize sales tax return to the City of Palm Springs.(but this shall not require payment of sales or use taxes on out-of-state business if not required by State law). In addition, Grantee and Dealer shall use the Site only for those uses as permitted in the DDA. Grantee shall have no right to subdivide, separate, or partition the Site, except upon prior written consent of Grantor, which consent shall not be unreasonably withheld. Breach of the terms, covenants, conditions, and provisions of the DDA and CC&Rs shall be a material breach of this Deed. In general, Grantee, via Dealer, shall operate the business conducted by Dealer on the Site in a prudent marmer, exercising customary business practices and hours of operation, to maximize sales and enhance the reputation and attractiveness of the business. 3. Term of Restriction. Grantee hereby covenants and agrees for itself, its successors, its assigns, and every suucccssor-in-interest to the Site that Grantee, such successors and such assigns, shall not develop, operate, maintain or use the Site in violation of the terms and conditions of the DDA, this Deed and the Redevelopment Plan (unless expressly waived in writing by Grantor) for the term of the Redevelopment Plan; provided that, however, the covenants contained in Sections 7 and 8 shall remain in effect in perpetuity. 4. Rid! of Re-Enhy Piior to Completion. Grantee covenants by and for itself and any successors-in-interest that Grantor shall have the right, at its option, to reenter and take possession of the Site hereby conveyed, with all vmprovements thereon, and re-vest in Grantor the estate conveyed to the Grantee, if after Closing and prior to recordation of the Certificate of Completion, Grantee or successor-in-interest shall commit a material default as described in Section 705 of the DDA. Pursuant to Section 705 0£ the DDA, Grantor's right to re-enter, repossess, terminate, and re-vest shall be subordinate to and subject to and be limited by, and shall not defeat, render invalid, or larit (1) any mortgage, deed of trust, or other security interests permitted by the DDA, or (2) any rights or interest provided in the DDA for the protection of holders of such mortgages, deeds of trust,or other security interests. 5. Reservation of Existing Streets. Grantor excepts and reserves any existing street, proposed street, or portion of any street or proposed street lying outside the boundaries of the Site w1dch might otherwise pass with a conveyance of the Site. 6. Transfer Restrictions. Grantee covenants that prior to the recordation of the Certificate of Completion, Grantee shall not transfer the DDA, the Site or any of its interests therein except as provided in Section 303 of the DDA. 7- Non-Discrimination. Grantee covenants that there shall be no discrimination against, or segregation of, any persons, or group of persons, on account of race, color, creed, religion, sex, marital status, age, ancestry, or national origin in the rental, sale, lease, sublease, transfer, use; occupancy, or enjoyment of the Site, or any portion thereof, nor shall Grantee, or any person claiming under or through Grantee, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy of tenants, lessees, subtenants, sublessees, or vendees of the Site or any portion thereof. The nondiscrimination and non-segregation covenants contained herein shall remain in effect in perpetuity. 8. form of Nondiscrimination Clauses in Agreements. Grantee shall refrain from restricting the rental, sale, or lease of any portion of the Site on the basis of race, color, creed, religion, sex, marital status, age, ancestry, gender or national origin of any person. .All such deeds, leases, or contracts shall contain or be subject to substantially the following nondiscrimination or non segregation clauses: (a) Deeds: In deeds the following language shall appear: "The grantee herein covenants by and for itself, its heirs, executors, administrators and assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, marital status, age, ancestry, gender or national origin in the sale, lease, rental, sublease, transfer, use, occupancy, tenure, or enjoyment of the land herein conveyed, nor shall the grantee itself, or any persons claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy of tenants, lessees, subtenants, sublessees, or vendees in the land herein conveyed. The foregoing covenants shall run with the land." (b) Leases: In leases the following language shall appear: "The lessee herein covenants by and for itself, its heirs, executors, administrators, successors and assigns, and all persons claiming under or through them, and this lease is made and accepted upon and subject to the following conditions: "That there shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, marital status, age, ancestry, gender or national origin in the leasing, subleasing, renting, transferring, use, occupancy, tenure, or enjoyment of the land herein leased nor shall the lessee itself, or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy of tenants, lessees, sublessees, subtenants, or vendees in the land herein leased-" (e) Contracts: In contracts pertaining to conveyance of realty the following language shall appear: "There shall be no discrimination against or segregation of any person or group of persons on account of race, color, creed, religion, sex, marital status, age, ancestry, gender or national origin in the sale, lease, rental, sublease, transfer, use, occupancy, tenure, or enjoyment of the land, nor shall the transferee itself, or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with reference to the selection, location, number, use, or occupancy of tenants, lessees, subtenants, sublessees, or vendees of the land." The foregoing covenants shall remain in effect in perpetuity. 9. Mortgage Protection. No violation or breach of the covenants, conditions, restrictions, provisions or limitations contained in this Deed shall defeat or render invalid or in any way impair the lien or charge of any mortgage, deed of trust or other financing or security instrument permitted by and approved by Grantor pursuant to the DDA; provided, however, that any successor of Grantee to the Site shall be bound by such remaining covenants, conditions, restrictions, limitations and provisions, whether such successor's title was acquired by foreclosure, deed in lieu of foreclosure, trustee's sale or otherwise. The foregoing shall limit any rights of holders of any mortgage, deed of 'sust, or other financing or security instrument set forth in the DDA. 10. Covenants to Run With the Land. The covenants contained in this Deed shall be construed as covenants ranning with the land and not as conditions which might result in forfeiture of title, and shall be binding upon Grantee, its heirs, successors and assigns to the Site, whether their interest shall be fee, casement, leasehold, beneficial or otherwise_ IN WITNESS WHEREOF, Grantor and Grantee have caused this instrument to be executed on their behalf by their respective officers or agents hereunto as of the date first above written. "GRANTOR": COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS Date: _ 1 t ,/0 2 2 0o;� By: - e David H. Ready, Exccuti rrector ATTEST: es Thompson,Assistant ecretary ',,r N': lu1," �fr_ r yr 1'6 4 i'j,,s,pfj PPROVED AS TO FORM: WOODRUFF, �LII►N, &SMART 13v: Dougl . Holland, Agency Counsel By its acceptance of this Deed, Grantee hereby agrees as follows: L Grantee expressly understands and agrees that the terms of this Deed shall be deemed to be covenants running with the land and shall apply to all of the Grantee's successors and assigns (except as specifically set forth in the Deed). 2. The provisions of this Deed are hereby approved and accepted. "GRANTEE" PARTNERS LAND DEVELOPMENT, LLC By: Date: STATE OF CALIFMNIA ) ss. COUNTY OF RIVERSIDE ) On l / a 2.0 0�5- /�efore zne7 4, z Notary Public, personally appearcd' 2^ _ , . !d? personally known to me (er 4enee)-to be the person(4 whose named/are subscriibed to the wit ` instrument and acknowledged to me thathe/they executed the same III i ier/their authorized eapacityf4s�, and that byCOheritheir signature on the instrument the persono or the entity upon behalf of which the person( acted, executed the instrument. Witness my hand and official seal. Notary Public [SEAT.] 4 ELAINE L.WEIMIND Cemmisslon aY 1399D15 Notary Public-CalRomio Rlvelsl[le County �� �Y Comm,Expires Feb 8,20Q7 J STATE OF CALIFORNIA ) ss. COUNTY OF RIVERSIDE ) ��, J ��' n n On . .2avos" before mz, Cu'rn,�F, opa't..a '"� , personally appeared c personally known to me ( gory cuit rtee) to be the persor(r 5'+ whose name(es is arsubscribcd to the within instrument and acknowledged to me tat he/sh 'the executed the same in his/her Sir uthorized capacit ie and that by his/he theisignatures(;on the instrument the person&or the entity upon behalf of which the persoiCss ,acted, executed the instrument. Witness my hand and official seal. c f G�- Notary Public [SEAL] (OOL'4 CPA 9 ctx3'wwo�.clN 4unoo ep{rjeAw yy,, opuO111�J-:AAnd AJOION ' S 51066£1 N u0AuJ o: STATE OF CALIFORNIA ) dNgtiO3M'73NIr73 ss. COUNTY OF RIVERSIDE ) On , before me, personally appeared , personally (mown to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose natne(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signatures(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. Witness my hand and official seal. Notary Public [SEAL] 9 LEGAL DESCRIPTION OF SITE EA`ETBIT"A" ALL THAT PORTION THE WEST ONE HALF OF TIM SOUTHEAST ONE QUARTER OF THE NORTHWEST ONE QUARTER OF SECTION 30,TOWNSHIP 4 SOUTH;RANGE 5 EAST,SAN BERNARDINO BASE,ALSO KNOWN AS ALLOTMENT 55 OF THE AGVA CALIENv7E BAND OF CAEU'ILLA INDIANS AS RECORDED IN THE BUREAU OF INDIAN AFFAIRS,DESCRIBED AS FOLLOWS. BEGINMM AT THE SOUTHWEST CORNEA OF SAID WEST ON'EHALF,THENCE NORTH 00-- 05'46"WEST ALONG TEE WEST LINE OF SAID WEST ONEHALF A DISTANCE-OF NI.17 FEET TO A POINT ONTHE SOUTHERLY LIME OF THE COUNITY'RIGHWAY,NOW KNOWN AS EAST PALM CANYON DRIVE,AS ACCEPTED BY THE BOARD OF SUPERVISORS OF RIVERSIDE COUNTY,CALIFORNIA BY 11INUTE BOOK 27 AT PAGE 10.SAID PONT BEING 40.00 FEET MEASURED AT RIGHT ANGLES FROM T13u CENTERLINE OF SAID EAST PALM CANYON DRIVE; TIENCE SOUTH 730-00'-00"EAST AND PARALLEL TO SAID CENTER=-- A DISTANCE OF 690.45 FEET TO THEEAST LINE OF SAID NVEST ONE HALF; THENCE SOUTH 001-03'-21 EAST ALONG SAID EAST LINE ADSITANCE OF 417.90 I-TET TO TEE SOUTHEAST CORNER OF SAID WEST ONE HALF; THEN CE SOUTH 89°-52'-11"WEST ALONG TH£SOLMI LINE-OF SAW 14T-ST ON I-,HALF.A DISTANCE OF 559A0 FEET TO THE POINT'OF BEGTN KING 00\TAI4ING 8.18 ACRES SUBJECT TO ANY rcASEMENT OF F CORD IF ANY. STATEMENT OF DOCUMENTARY TRANSFER TAX DUE IN ACCORDANCE WITH PROVISIONS OF SECTION 11932 OF THE REVENUE AND TAXATION CODE, I, THE UNDERSIGNED, REQUEST THAT THE DECLARATION OF DOCUMENTARY TRANSFER TAX BE MADE ON THIS FORM WIIICH WILL NOT BE MADE A PART OF THE PERMANENT RECORD AND WILL BE AFFIXED TO AND RETURNED WITH THE CONVEYING DOCUMENT AFTER THE PERMANENT RECORD IS MADE. GOYH LAITY REDEVELOPYENT AGENCY OF THE CITY OF PALM SPRINGS (NAME OF GRANTOR) AND PARTNERS LA20 BEPELOP-=T, LLC _ (NAME OF GRANTEE) THE UNDERSIGNED DECLARES THAT THE DOCUMENTARY TRANSFER TAX IS $ 3,036.00 AND IS COMPUTED ON THE FULL VALUE OF THE INTEREST OR PROPERTY CONVEYED, OR IS COMPUTED ON THE FULL VALUE LESS THE VALUE OF LIENS OR EMCUMBRANCES REMAINING THEREON AT THE TIME OF SALE THE LAND; TENEMENTS OR REALTY IS LOCATED IN AN UNINCORP�TED AREA IN THE COUNTY, OR x THI`CITY OF i .I�NA T2E OF DECL NT OR SIGNA pP DECLARANTS AGENT) DOG M 2006-0324El33 05/04/2006 Larry 4l C.ty o RiverWardside Rssessor, County Clerk 8 Recorder DOC # 2006-0324534 Recording Requested By 05/04/2006 06:00p Fee:NC CHICAGO TITLE COMPANY RecordedPag jr, offic5a6 Records County of Riverside Larry W. Ward Assessor MAIL TO 10 Cgunty clerk & Recorder AND WHEN RECORD II11lI I_lllll!Il_lll li i!II Illlll llllll_I I11lllfl 11111114 Community Redevelopment Agency of the City of Palm Springs M S U PAGF SIZE OA �FCAR NOCOS FMF R11SG._ P.O. Box 2743 - Palm Springs, CA 922639 Attu: Executive Director A R COW LONG SEFUNO NCHG 11% (5p icc Above This Linc for Recorder's Ofttce U.�Only) DECLARATION OF COVENANTS CONDITIONS AND RESTRICTIONS THIS DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS ("Declaration") is made this _ day of 2005 by and among VIP MOTOR CARS, LTD, a California corporation, wholly owned by VIP MOTOR CARS ACQUISITION, INC., a California corporation (collectively "Dealer") and PARTNERS LAND DEVELOPMENT, LLC an Arkansas limited liability corporation ("Developer"; Developer and Dealer are collectively referred to as "Declarant"), THE CONIMIJNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORINIA, a public body, corporate and politic ("Agency"), and THE CITY OF PALM SPRINGS; a municipal corporation ("City"). RECITALS: l- Declarant is the fee owner of that certain real property located in the City of Palm Springs, County of Riverside, State of California more parlicularly described on Exhibit "I" attached hereto and incorporated herein by reference ("Site"). 2. The Site is within the Merged Redevelopment.Project Area No. 1 ("Project Area') specifically described in the Redevelopment Plan for the Project Area which was approved and adopted by the City Council of the City of Palm Springs by Ordinance No. X�& on a- A -82b3 and as subsequently amended by means of ordinances of the City Council. 3- The Agency and the City have fee or easement interests in various streets, sidewalIcs and other property within the City and are responsible For the plannin; and development of land within the City in such a manner so as to provide for the health, safety and welfare of the residents of the City. That portion of the Agency's or City's interest in real property most directly affected by this Agreement is depicted in Exhibit "2" attached hereto and incorporated herein by reference ("Public Parcel"). 4_ The purpose of the Redevelopment Plan is to remedy and alleviate blighted conditions associated with undeveloped and unproductive land, inadequate street and circulation systems, unsuitable land mixes, inadequate or total lack of public street improvements, and the existence of substandard and incompatible uses and structures. The redevelopment and restriction of the Site in accordance with the Redevelopment Plan will promote the utility and value of the Site and of the Project Area,for the benefit of its future owners and the entire City. 5. Pursuant to the Redevelopment Plan, Declarant has entered into a Disposition and Development ,Agreement ("Agreement") with the Agency which Agreement places certain restrictions on the Site Pursuant to the City's development requirements, the City has approved or will approve a site plan for the development of the Site ("Site Plan"), which plan places certain restrictions on the Site. Said Redevelopment Plan, the Agreement and Sitc Plan (i) are on file and may be reviewed in the office of the executive director of the Agency ("Executive Director"), in the Palm Springs City Hall and (ii) are each incorporated herein by this reference and made a part hereof as though fully set forth herein. 6. Declarant, the Agency and City intend, in exchange for the entering into the Agreement by the Agency and the approval of the Site Plan by City, that the Declarant, its successors and assigns hold, sell, and convey the Site subject to the covenants, conditions, restrictions, and reservations set forth in this Declaration and that the Agency and Citv shall have the right and power to enforce the covenants, conditions, restrictions, and reservations as provided herein. 7. Declarant desires to establish and grant certain covenants, conditions and restrictions upon the Site for the benefit of the Agency and the City and their respective successors and assigns for the purpose of enhancing and protecting the value, desirability and attractiveness of the Site and effectuating the Redevelopment Plan. Such covenants, conditions and restrictions shall run to the benefit of the Public Parcel and bind the Site, the Declarant and its successors and assigns. NOW, THEREFORE, the Declarant, Agency and City declare, covenant and agree, by and for themselves, their heirs, executors and assigns, and all persons claiming tinder or through them that the Site shall be held, transferred, encumbered, used, sold, conveyed, leased and occupied subject to the covenants and restrictions hereinafter set forth, which covenants are established expressly and exclusively for the use and benefit of the Agency and City. "Agency" -ATTEST° COMMUNITY REDEVELOPMENT AGENCY OF THE CITY" OF PALM SPRINGS, CALIFORNIA, a public body, corporate and politic sistant Secretary Chairman "City" ATTEST: CITY OF PALM SPRINGS, a municipal corporation By: Clerk Mayor �l , APPROVED AS TO FORM: °VG4J D11 yval 1 zS& 011WD6 A64q*G APPROM BY CITYC01JPIM Wiiaiu�n�sel CALIFORNIA s,d %r.3 it ALL-PURPOSE ACKNOWLEDGEMENT STATE OF CALIFORNIA ) COUNTY OF giverside ) On�7�T. f �ez76 before me, ELAINE L. WEDEKIND Notary a„hjj n DAT£ NAME,TITLE OF OFFICER•E.G„'JANE DOE,NOTARY PUBLIC' personally appeared, Ran Oden and James Thompson ----------.------------- personally known tome to be the person(s) whose name(s) Mare subscribed to the within instrument and acknowledged to methatknelahtbE they executed the same in hi5Abar/their authorized capacity(ies), and that by '/their signatureW on the instrument the person(,or the entity upon behalf of which the person(j)acted, executed the instrument. WITNESS my hand and official seal. 01 , EUVNE 1.WEDEKIND Nolory Public•CCIIIornia RIvErside COUntymm.Expires Feb S,2007 NOTARY PUBLIC SIGNATURE OPTIONAL INFORMATION TITLE OR TYPE OF DOCUMENT DATE OF DOCUMENT NUMBER OF PAGES SIGNER(S)OTHER THAN NAMED ABOVE TERMS AND CONDITIONS ARTICLE 1 COVENANTS, CONDITIONS AND RESTRICTIONS a) General. The Site shall be developed and used only as permitted by the restrictions contained in the Site PIan, Redevelopment Plan and the Agreement. b) Use. Developer acknowl edges and agrees it may only use the Site for automobile, truck, or other vehicle franchise and related purposes, consistent with the terms, covenants and conditions as set forth in the Agreement and the CC&Rs; provided that with Agency's approval, which approval shall not be unreasonably withheld, Developer may change the use of the Site. In considering whether to grant approval, Agency may consider those factors set forth in Section 303 of the Agreement. Developer's fleet sales and vehicle leases shall be made from the Site to maximize sales tax return to the City of Palm Springs (but this shall not require payment of sales or use taxes on out-of-state business if not required by State law), In general, Developer shall operate the business conducted by it on the Site in a prudent manner, exercising customary business practices and hours of operation, to maximize sales and enhance the reputation and attractiveness of the Site. c) Maintenance Agreement. Declarant, for itself and its successors and assigns, hereby covenants and agrees to be responsible for the following: i) Maintenance and repair of the Site and all related on-site improvements, easements, rights-of-way and landscaping thereon at its sole cost and expense, including, without limitation, buildings, parking areas, lighting, signs and walls, in a first class condition and repair, free of rubbish, debris and other hazards to persons using the same, and in accordance with all applicable laws, rules, ordinances and regulations of all federal, state, and local bodies and agencies having jurisdiction over the Site_ Such maintenance and repair shall include, but not be limited to, the following: (i) sweeping and trash removal; (ii) the care and replacement of all shrubbery, plantings, and other landscaping in a healthy condition, or the replacement of damaged or dying landscaping with equivalent landscaping materials of then-comparable size and maturity; and (iii) the repair, replacement and re-striping of asphalt or concrete paving using the same type of material originally installed, such that the paving is at all times kept in a level and smooth condition. ii) Maintenance of the Site in such a manner as to avoid (i) the reasonable determination of a duly authorized official of the Agency or City that a public nuisance has been created by the absence of adequate maintenance such as to be detrimental to the public health, safety or general welfare or (ii) a condition of deterioration or disrepair which causes appreciable harm or is materially detrimental to property or improvements within one thousand(1,000)feet of such portion of the Site. c) Parking and Driveways. Declarant shall be responsible for assuring that the driveways and traffic aisles on the Site be kept clear and unobstructed at all times. No vehicles or other obstruction shall project into any of such driveways or traffic aisles. Vehicles associated with the operation of the Site, including delivery vehicles, vehicles of employees and vehicles of persons with business oir the Site shall park solely on the Site and shall not park on streets or adjacent property. d) Other Rights of City. In the event of any violation or threatened violation of any of the provisions of this Declaration, then, in addition to, but not in lieu of, any of the rights or remedies the City may have to enforce Ure provisions hereof, the City shall have the right to withhold or revoke, after giving written notice of said violation, any building permits, occupancy permits, certificates of occupancy, business licenses aitd similar matters or approvals pertaining to the Site or any part thereof or interests therein as to the violating person or one threatening violation. e) No City Liability. The granting of a right of enforcement to the City does not create a mandatory duty on the part of the City to enforce any provision of this Declaration. The failure of the City to enforce this Declaration shall not give rise to a cause of action on the part of any person. No officer or employee of the City shall be personally liable to the Declarant, its successors,transferees or assigns, for any default or breach by the City under this Declaration. 0 Compliance With Ordinances. Declarant shall comply with all ordinances, regulations and standards of the City and Agency applicable to the Site. Declarant shall comply with all rules and regLilatious of any assessment district of the City with jurisdiction over the Site. g) Outside Storage. Other than the storage of vehicles for sales and lease, trash or other storage in any outside storage areas approved by the Agency or as required by law, no storage of any kind shall be permitted outside the building(s) located on the Site. Adequate trash enclosures shall be provided and screened. Locations of such areas and types of screening must be approved by the Executive Director and, where applicable, the City. Crates for trash storage area shall be kept closed at all times except when in actual use. h) Buildings and Equipment. Any construction, repair; modification or alteration of any buildings, equipment, structures or improvements on the Site shall be subject to the following restrictions: i) All mechanical and electrical fixtures and equipment to be installed on the roof or on the ground shall be adequately and decoratively screened. The screening must blend with the architectural design of the building(s). Equipment on the roof must be at least six (6) inches lower than the parapet line and adequately screened. All details and materials of said screening shall be approved by the Executive Director prior to installation. ii) The texture, materials and colors used on the buildings, as well as the design, height, texture and color of fences and walls shall be subject to the approval of the Executive Director. iii) Signs on the Site shall conform to the standards and ordinances of the City and to a uniform design theme approved by the City. Any signs installed on the Site shall conform to said design scheme and shall be approved by the Executive Director prior to installation. iv) Lights installed on the building shall be a decorative design. No lights shall be permitted which may create any glare or have a negative impact on the residential areas, if any, existing around the Site. No light stand on any portion of the Site shall be, higher than filieen (15) feet. The design and location of any lights shall be subject to the approval of the Executive Director. v) No fences, signs, gas pumps, or any other similar facilities shall be constructed or provided on the Site without the prior approval of the Executive Director. vi) Manufacturing plant use may be permitted on the Site, subject to the limitations provided in the Municipal Code of the City. Specifically, prior to such use, suitable evidence must be provided to the Executive Director that no negative environmental effect shall be caused by reason of odor, noise, glare, vibration, fumes, smoke, particulate matter, refuse matter, and that no unsafe or dangerous conditions are to be created such as the manufacture, use or storage of explosive, radioactive materials or other similarly hazardous materials. i) Public Agencv Rights of Access- Participant hereby grants to the Agency, the City and other public agencies the right, at their sole risk and expense, to enter the Site or any part thereof at all reasonable times with as little interference as possible for the purpose of construction, reconstruction, relocation, maintenance, repair or service of any public improvements or public facilities located on the Site. Any damage or injury to the Site or to the improvements constructed thereon resulting from such entry shall be promptly repaired at the sale expense of the public agency responsible for the entry. ARTICLE 2 ENFORCEMENT a) Termination. No breach of this Declaration shall entitle any parry to cancel, rescind or otherwise terminate this Declaration, or excuse the performance of such parry's obligations hereunder, provided that, however, this limitation shall not affect in any manner any other rights or remedies which the parties may have by reason of such breach. b) Injunction. Notwithstanding anything contained herein to the contrary, in the event of any violation or threatened violation of any of the terms, covenants, restrictions and conditions contained herein, in addition to the other remedies herein provided, the parties hereto shall have the right to enjoin such violation or threatened violation in a court of competent jurisdiction. c) Other Rights of Agency and City. In the event of any violation or threatened violation of any of the provisions of this Declaration, then in addition to,but not in lieu of. any of the rights or remedies the Agency and City may have to enforce the provisions hereof, the Agency and City shall have the right (i) to enforce the provisions hereof as a party hereto and as an owner of the Public Parcel, and (ii) to withhold or revoke, after giving written notice of said violation, any building permits; occupancy permits, certificates of occupancy, business licenses and similar matters or approvals pertaining to the Site or any part thereof or interests therein as to the violating person or one threatening violation. d) Failure to Perfonn; Lien. if any owner of the Site defaults on the performance of any of its obligations hereunder, the Agency or City, their employees, contractors and agents may, at their sole option, and after making reasonable demand of the owner of the Site that it cure said default, enter onto the Site for the purpose of curing the default. In making an entry, the Agency or City shall give the owners of the Site, or their representative, reasonable notice of the time and manner of said entry and said entry shall only be at such times and in such manners as is reasonably necessary to carry out this Agreement. In such event,the owner of the Site shall reimburse the Agency or City for all costs and expenses related to the curing of said default. If the Agency or City is not reimbursed for such costs by the owner of the Site within all days after giving notice thereof, the same shall be deemed delinquent, and the amount thereof shall bear interest thereafter at a rate of ten percent (10%) per annum until paid. Any and all delinquent amounts, together with said interest, costs and reasonable attorneys' fees shall be a personal obligation of the owner of the Site as well as a lien and charge,with power of sale, upon the Site. The Agency may bring an action at law against the owner of the Site to pay any such sums. The lien provided for hi this Section may be recorded by the Agency as a Notice of Lien against the Site in the Office of the County Recorder, County of Riverside, signed and acknowledged, which Notice of Lien shall contain a statement of the unpaid amount of costs and expenses. The priority of such lien when so established against the Site shall date from the date such notice is filed of record and shall be prior and superior to any right, title, interest, lien or claim which may be or has been acquired or attached to such real property al the time of recording of such lien,but shall be junior and subordinate to maiters having a priority prior to the date such notice is recorded; provided that, however, said lien shall be subordinate to any bona fide mortgage or deed of trust and any purchaser at any foreclosure or trustee's sale under any such bona fide mortgage or deed of trust as provided in Section 3.3 below. Such lien shall be for the use and benefit of the person fling the same, and may be enforced and foreclosed in a suit or action brought in any cows of competent jurisdiction. Any such lien may be enforced by the Agency or City by taking either or both of the following actions concurrently or separately (and by exercising either of the remedies set forth below shall not prejudice or waive its rights to exercise the remedy): (i) bring an action at law against the defaulting party personally obligated to pay such lien or (ii) foreclose such lien in accordance with the provisions of Section 2924 of the California Civil Code applicable io the exercise of powers of sale or mortgages and deeds of trust, or any other manner permitted by California law. Upon the timely curing of any default for which such lien was recorded, the City or Agency shall record an appropriate release of such lien, and sign any other documents reasonably necessary to satisfy title insurance requirements, upon payment by the owner of the Site of a reasonable ree to cover the costs of preparing and recording such release, together with the payment of such other costs, including without limitation, reasonable attorneys fees, count costs, interest or other fees which have been incurred. ARTICLE 3 ENCUMBRANCES, MORTGAGE PROTECTION AND TAXES a) Participant's Breach Not to Default Mortgage Lieu. Declarant's breach of any of the covenants or restrictions contained in this Declaration or the Agreement shall not defeat or render invalid the lien of any mortgage or deed of trust made in good faith and for value as to the Site or any pan thereof or interest therein, whether or not said mortgage or deed of trust is subordinated to this Declaration or the Agreement; but, unless otherwise herein provided, the terms, conditions, covenants, restrictions and reservations of this Declaration and the Agreement shall be binding and effective against the bolder of any such mortgage or deed of trust and any owner of any of the Site or any part thereof whose title thereto is acquired by foreclosure, trustee's sale, or otherwise. b) Amendments or Modifications to Declaration. No purported rule, regulation, modification, amendment and/or termination of this Declaration or the Agreement shall be binding upon or affect the rights of any mortgagee holding a mortgage or deed of nest upon the Site that is recorded in the Office of the Riverside County Recorder prior to the date any such rule, regulation, modification, amendment or termination is recorded in such office, without the prior written consent of such mortgagee. c) Liens Subordinate. Any monetary lien provided for herein shall be subordinate to any bona fide mortgage or deed of trust covering an ownership interest or leasehold or subleasehold estate in and to the Site and any purchaser at any foreclosure or trustee's sale (as well as any by deed or assignment in lieu of foreclosure or trustee's sale) under any such mortgage or deed of trust shall take title free from any such monetary lien, but otherwise subject to the provisions hereof; provided that, after the foreclosure of any such mortgage and/or deed of trust, all other assessments provided for herein to the extent they relate to the expenses incurred subsequent to such foreclosure, assessed hereunder to the purchaser at the foreclosure sale, as owner of the Site after the date of such foreclosure sale, shall become a lien upon the Site and may be perfected and foreclosed as provided in Section 2(d). d) Payment of Taxes and Assessments_ Declarant shall pay, when due, all real estate taxes and assessments assessed or levied against the Site. Nothing herein contained shall be deemed to prohibit Declarant from contesting the validity or amounts of any tax or assessments nor to limit the remedies available to Declarant with respect thereto. ARTICLE d COVENANTS TO RUN WITH THE LAND a) Covenants Running With the Land. This Declaration is designed to create equitable servitudes and covenants appurtenant to the Public Parcel and running with the Site. Declarant hereby declares that all of the Site shall be held, sold, conveyed, encumbered, hypothecated, leased, used, occupied and improved subject to these covenants, conditions, restrictions and equitable servitudes, all of which are for the purposes of uniformly enhancing or protecting the value, attractiveness and desirability of the Site and effectuating the Redevelopment Plan. The covenants, conditions, restrictions, reservations, equitable servitudes, liens and charges set forth herein shall: (i) run with the Site, (ii) be binding upon all persons having any right, title or interest in the Site, or any part thereof, their heirs, successive owners and assigns, (iii) inure to the benefit of every portion of the Public Parcel and any interest therein, (iv) inure to the benefit of the Agency, City and their successors and assigns and successors in interest, (v) shall be binding upon Declarant, its successors and assigns and successors in interest; and (vi) may be enforced by the Agency and City. Agency and Declarant hereby declare their understanding and intent that the burden of the covenants set forth herein touch and concern the land in that Declarant's legal interest in the Site is rendered less valuable thereby. Agency and Declarant hereby further declare their understanding and intent that the benefit of such covenants touch and concern the land by enhancing and increasing the enjoynent and use of the Site by the citizens of the City and by furthering the public purposes for which the Agency was formed. b) Agreement Arnong Declarant, Agency and City. The Declarant, in exchange for the Agency entering into the Agreement the City's approval of the Site Plan, hereby agrees to hold, sell, and convey the Site subject to the covenants, conditions, restrictions and reservations of this Declaration. Declarant also grants to the Agency and City the right and power to enforce the covenants, conditions, restrictions and reservations contained in this Declaration against the Declarant and all persons having any right, title or interest in the Site, or any part thereof their heirs, successive owners and assigns. ARTICLE 5 TERM The covenants, conditions and restrictions contained in this Declaration shall remain in effect for the term of the Redevelopment Plan. ARTICLE 6 MISCELLANEOUS a) Modification. This Declaration may not be modified, terminated or rescinded, in whole or in part, except by a written instrument duly executed and acknowledged by the parties hereto, their successors or assigns, and duly recorded in the Office of the County Recorder, County of Riverside. b) Amendments. Any amendment to any provision of this Article or to any other provisions of this Declaration enforceable by the City shall require the prior written consent of the City. c) Governing Law. This Declaration shall be governed by and construed in accordance with the laws of the State of California. d) Severability. The invalidity or unenCorceability of any provision of this Declaration with respect to a particular party or set of circumstances shall not in any way affect the validity and enforceability of any other provision hereof, or the same provision when implied to another party or to a different set of circumstances. e) Notices. Any notice to be given under this Declaration shall be given by personal delivery or by depositing the same in the United States Mail, certified or registered, postage prepaid, at the following address: Agency: The Community Redevelopment Agency of The City of Palm Springs P.O. Box 2743 Palm Springs, CA 92263 Attn: Executive Director City: City of Palm Springs P.O. Box 2743 Palm Springs, CA 92263 Attn: City Manager With Copy to: The Community Redevelopment Agency of The City of Palm Springs P.O. Box 2743 Palm Springs, CA 92263 Attn: City Attorney Declarant: Partners Land Development 11300 Rodney Parham Road, Suite 300 Little Rock, Arkansas 72212 Attn: Jerry G. Johnson Willi Copy to: VIP Motor Cars, LTD 11300 Rodney Parham Road, Suite 300 Little Rock, Arkansas 72212 Attn: Jerry G. Johnson Any notice delivered personally shall be effective upon delivery. Any notice given by mail as above provided shall be effective forty-eight (48) hours after deposit in the mails. Any party may change address for notice by giving written notice of such change to the other party. 9 Countcmarts. This Declaration may be executed in any number of counterparts each of which shall be an original but all of which shall constitute one and the same document. IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first written above. "Declarant" "DEVELOPER" PARTNERS LAND DEVELOPMENT, LLC, an Arkansas limited liability corporation By: It . By: A, Its: /-P,.+{;-vim "DEALER" VIP MOTOR CARS, LTD, a California corporation, wholly owned by VIP MOTOR CARS ACQL:ISITION, INC.,a California corporation By: I , B • STATE OF CALIFORNIA ) ��"�� I z ) ss. COUNTY OF tC"Ldi ) °� / G1 On �/,.?S��� ]�efore me �R. �. E�����Jd 7�` ersonall appeared i / I C. 1� 2 L. TL/)r i, i V 41 � personally known to me (or proved to me on the basis of satisfactory evidence) to be the persono whose nam6ss isC�e>subsctibed to the within instrument and acknowledged to me that he/she/411D executed the same in his/hcfeOauthorized capacitf(iesj and that by his/he he sib tature(Q on the instrument the perso (r);or the entity upon behalf of which the person s(f] acted, executed the instrument. Witness my hand and official seal. r � . EWNE t.WEDFKIND -�-���'�-��' g Commission 8 I399015 otary Public J l [SEA ,]- - � Notary PWpc-Caefomlp �y L' „ Rrver.Jtle county G My Comm.Exptrms Fob 8,2007 r�S�.lLr-i�a,4-5 STATE OF GA I+F9le�f.A ) ss- COUNTY OF PUL I ) On dew before me, n�N�tit ��rwQh2r�a personally appeared G t c W else�� way' personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose namc(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in Irs/herhheir authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. ,,,.,;,,, ,"v" .E'' a(i,� ,, Witness my hand and offs iaY seal. r CAr�wwc g — �U ' -�sr - Notaty Public ��u [SEAL] EXHIBIT "1" LEGAL DESCRIPTION OF THE SITE ALL THAT PORTION THE 1VEST O'M 11P.LF Or TEE SOUTHEAST ONE QTJARTI- OF'rAE NORT15VFST ONE QUARTER OF SECTION 30,TONYNSITIP 4 SOUTH:RA-NGE 5>;ASL, SAN BERNARMTO BASE,ALSOICNOWN AS A.LLOTMENrT 55 OF THE AQUA CALIZIN- E BAND ND OF CAHUILLA INDIANS AS RECORDED INTHE BUREAU OF INDIAN AFFAMS,DESCRMED AS FOLLOWS. BEGINl',VG AT THE SOU E[WEST CORNER OF SAID WL-ST ONMRALF,THENCE NORTH 00'- 05'-46"WEST ALONG THE WEST IM OF SAID)NIM ONE HALF A DISTANCE OF 681.17 FEbT TOAPOINTONTHE5OUIFZMYLLNEOF THE COUNT YIiIGIIW AY,NOWKN0 WNASFAST PALM CANI'ONDME.AS ACCEPTED BY THE BOARD OF SUPERti7SORS OF RI=1l:TE CODNTY,CALWORNIA BY MIND M BOOK 27 AT PAGE 10.SAID POINT BEING 40,00 FEET N EASURED AT RIGHT ANGLES FROM Z f7-CE fMRLINE OF SAID EAST PALM CANYON DRAT, THENCE SOUTH 730-00'-00"EAST AND P_kRnLLF1,TO SMD CENTER LSNE A DISTANCE OF 690.45 FEE I TO THE EAST LIVE OF SAID NEST ONE HALF; THENCE SOLITH 000-07'-21"EAST'ALONG SAID BAST LWE A DSIT?NCE OF 477.S0 FEEL TO THE SOUTHEAST C,ORNEROF SAID WEST O T HALF; THENCE SOUTIT W-52'-11`NVEST ALONG THE SOAT11 LINZ OF SAID\iTST 011TE 14A.IF,A DISTANCE OF 659.60 FEET TO THE POINT OF BEGINNING. CONTAINING 8.78 ACRES SUBIECT TO ANY EASEMENT OF RECORD TF ANY_ GXHIBd1 '1" Page 1 or: /r00 e Rccurdcr LARRY W. WARD PC sox 751 COUNTY OF RIVERSIDE. Rivc>4c,CA 91_501-0751 10 ASSESSOR-COUNTY CLERK-RECORDER (951)4"6r7001)htlpJltirnide.aarclkrx ann NOTARY CLARITY Under the provisions of Government Code 27361.7, 1 certify under the penalty of perjury that the notary seal' on the document to which this statement is attached reads as follows: Name of Notary: �( �� �� eu lmp I f r- I Commission #: k / Jq Place of Execution: Date Commission Expires: Date: Signature: _— Print Name: ACR I86P-AS4RE0(Ro OV3005) CHICAGO TITLE COMPANY 0 (760) 345-0750 Fax (760) 772-8463 November 2, 2005 TO: LINDA SALCIDO CHICAGO TITLE COMPANY 78-000 Fred Waring Drive SUITE 103 PALM DESERT, CALIFORNIA 92211 Escrow No. 52050042 - K42 Property vacant land APN 681-070-016, Palm Springs, CALIFORNIA The undersigned hereby acknowledge(s) receipt of a copy of the schecule B documents for the subject property APN 681-070-016 COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA A PUBLIC BODY, CORPORATE AND POLITIC CH�AN' .� G'HAIRMP, ATT E q:4YIfw 1A �b�1!'111��f St:.��i.'i y�b —-BY I- w UvYfO iy,�. lYu—K G AS�fSTANT SECRETARY ,� r tf�r p i`Ir, !!J / 4� /APPROVED FORM; NJOODR RADLIN&SMART BY: DOUGLASC L ND,AGENCY COUNSEL PREAPP-02/10/00bk CHICAGO TITLE COMPANY 0 78-000 Fred Waring Drive, SUITE 103, PALM DESERT, CALIFORNIA 92211 (760)345-0750 Fax (760)772-8463 November 2,2005 JOHN S. RAYMOND COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS 3200 E. TAHQUITZ CANYON WAY PALM SPRINGS, CA 92263 Re:vacant land APN 681-070-016, Palm Springs, CALIFORNIA Escrow No:52020042A Dear MR. RAYMOND: In connection with the above referenced escrow,we enclose the following items: PLEASE SIGN AND RETURN (RETAIN ADDITIONAL COPY FOR YOUR FILES): Escrow Instructions (2)Amendments dated November 2,2005 Tax Withholding Notice Estimated Closing Statement PLEASE FILL IN COMPLETELY, SIGN AND RETURN: Loan Information Sheet 1099 Form 593-C If we can provide any additional information or answer any questions you may have, please give us a call. Thank you for choosing Chicago Title Company. Sincerely, CHIWj CAGOTITLE COMPANY Linda Salcido Escrow Officer Si LTR--06/22/96bk AMENDMENT TO ESCROW INSTRUCTIONS TO: CHICAGO TITLE COMPANY, licensed bythe California Department of InsuraM AND RETURN e 78-000 Fred Waring Drive, SUITE 103, PALM DESERT, CALIFORNIA 92211 (760)345-0750 Fax(760)772-8463 Escrow No. 52050042A-K42 Escrow Officer LINDA SALCIDO Date November 2, 2005 Property: vacant land APN 681-070-016, Palm Springs, CALIFORNIA I. Your original escrow instructions dated October 25,2005 and any amendments and/or supplements thereto,are 2. hereby amended and/or supplemented as set forth herein: 3. 4. Buyers and Sellers acknowledge and agree that,with the exception of receipt by Escrow Holder of funds and 5• documents required pursuant to the agreements as amended herein, all conditions to the close of escrow have been 6• satisfied and/or waived. 7. s• ALL OTHER TERMS AND CONDITIONS ARE TO REMAIN THE SAME. s. 10, it. 12• COMMUNITY REDEVELOPMENT AGENCY 13. OF THE CITY OF PALM SPRINGS, CALIFORNIA 14. A PUBLIC BODY, CORPORATE AND POLITIC 1s. 16, ? 17. BY:K �� Is. CHAIRMAN 19. ATTEST: 2D. V2• AS N TANT SECRETARY 23, / za.; ! ;5:/APPROVED OFORM; 26: WOODRU F RADLIN & ART 28. BY: 0 ��— zs. DOIUGLAS C. OLLAND,AGENCY COUNSEL 30. 31. PARTNERS LAND DEVELOPMENT, LLC,AN ARKANSAS LIMITED LIABILITY CORPORATION 32. 33. BY: 34. ITS; 35. 36. 37. BY: 38. ITS: 39. 40. 41. 42, 43. 44. 45. 46. 47. 48. 49. S(1 'M AND RETURN CHICAGO TITLE COMPANY 78-000 Fred Waring Drive,SUITE 103,PALM DESERT,CALIFORNIA 92211 (760)345-0750 Fax(760)772-8463 Escrow No. 52050042 - K42 Escrow Officer LINDA SALCIDO Date November 3, 2005 NOTICE OF TAX WITHHOLDING REQUIREMENTS In accordance with Sections 18662 and 18668 of the California Revenue and Taxation Code,a buyer may be required to withhold an amount equal to THREE AND ONE-THIRD percent (3-1/3%) of the sales price in the case of a disposition of California real property interest by either: 1. A seller who is an individual or when the disbursement instructions authorize the proceeds he sent to a "financial Intermediary"of the seller,OR 2. A corporate seller that has no permanent place of business in California. The buyer may become subject to penalty for failure to withhold In an amount equal to the greater of Ten percent(10%) of the amount required to be withheld or five hundred dollars($500). However, notwithstanding any other provision included in the California statutes referenced above, no buyer will he required to withhold any amount or be subject to penalty for failure to withhold if: 1. The sales price of the California real property conveyed does NOT exceed one hundred thousand dollars($100,000),OR 2. The seller executes a written certificate, under the penalty of perjury, certifying that the seller is a corporation with a permanent place of business In California,OR 3 The seller,who is an individual,executes a written certificate,under the penalty of perjury,of any of the following: A. That the California real property being conveyed is the Seller's principal residence (within the meaning of Section 121 of the Internal Revenue Code)- B. That the California real property being conveyed is or will be exchanged for property of like kind (within the meaning of Section 1031 of the Internal Revenue Code),but only to the extent of the amount of gain not required to be recognized for California income tax purposes under Section 1031 of the Internal Revenue Code- C. That the California real property has been compulsorily or involuntarily converted (within the meaning of Section 1033 of the Internal Revenue Code) and that the seller Intends to acquire property similar or related in service or use so as to be eligible for nonrecognition of gain for California income tax purposes under Section 1033 of the Internal Revenue Code. D. That the California real property transaction will result in a loss for California income tax purposes. The seller is subject to penalty for knowingly filing a fraudulent certificate for the purpose of avoiding the withholding requirement. The California statutes referenced above Include provisions which authorize the Franchise Tax Board to grant reduced withholding and waivers from withholding on a case-by-case basis for corporations or other entities. Additionally,under the federal"Foreign Investment in Real Property Tax Act"(FIRPTA)as amended and related laws, a buyer may be required to withhold, and could be liable for, an additional tax equal to TEN percent(10%) of the sales price of the real property being conveyed, in the case of a seller who may be classified as a"foreign person"under Section 1445 of the Internal Revenue Code of 1986. IRS Regulations state that a foreign seller lacking an Individual Taxpayer Identification Number(ITIN) will automatically be subject to withholding upon the transfer of real property.A seller may apply for an ITIN,however,it must be obtained priorto the time of transfer. The Federal statute referenced above includes provisions that authorize the IRS to grant reduced withholding and waivers from withholding on a case-by-case basis. The parties herein may wish to investigate these options with their own legal or financial advisors or the Internal Revenue Service. (Page One of Two) Nry R-12/14/02w C]HICAGO TITLE COMPANY 78-000 Fred Waring Drive,SUITE 103,PALM DESERT,CALIFORNIA 92211 (760)345-0750 Fax(760)772-8463 Escrow No. 052050042 Escrow Officer LINDA SALCIDO Date November 3, 2005 NOTICE OF TAX WITHHOLDING REQUIREMENTS (Continued) The escrow holder will not undertake to withhold or remit funds to any taxing authority, unless specifically instructed in writing to do so.In the event escrow is so requested,appropriate mutual instructions will be required. DUE TO THE COMPLEXITY OF THESE TAX LAWS, AND THE PENALTY PROVISIONS FOR FAILURE TO WITHHOLD, IT IS RECOMMENDED THAT THE PARTIES TO THIS TRANSACTION SHOULD SEEK THE PROFESSIONAL ADVICE AND COUNSEL OF AN ATTORNEY, ACCOUNTANT OR FINANCIAL ADVISOR CONCERNING THE EFFECT OF THESE LAWS ON THIS TRANSACTION AND SHOULD NOT ACT ON ANY STATEMENTS MADE OR OMITTED BY THE ESCROW OR CLOSING OFFICER, COMMUNITY REDEVELOPMENT AGENCY PARTNERS LAND DEVELOPMENT, LLC, AN OF THE CITY OF PALM SPRINGS, CALIFORNIA ARKANSAS LIMITED LIABILITY CORPORATION A PUBLIC BODY, CORPORATE AND POLITIC BY: / ITS; CHAIRMAN '~— AITER , BY: ITS: _.�n >�etc=��"2r`rtd=L ASS• STANT SECRETARY APPROVED AS FORM; ' WOODRUFF, LIN & SMART BY: DOUGLAS C. HOLLAND, AGENCY COUNSEL (Page Two of Two) Niwaz-ii/n�oa na ESCROW INSTRUCTIONS SIGN AND RRTUfi TO: CHICAGO TITLE COMPANY, licensed by the California Department of Insurance 78-000 Fred Waring Drive,SUITE 103,PALM DESERT,CALIFORNIA 92211 (760)345-0750 Fax(760)772-B463 Escrow No. 52050042A-K42 Escrow Officer LINDASALCIDO Date October25,2005 1. On or before the TIME LIMIT DATE of on or before November 7,2005 2. 3. The undersigned hands you a"2005 Disposition and Development Agreement"dated October 25,2005,hereinafter 4. the"Agreement",executed by'The Community Redevelopment Agency of the City of Palm Springs,as Seller and 5. "Partners Land Development,L-C,an Arkansas limited liability Corporation",as Buyer 6. 7. You are authorized to act in accordance with these instructions,and any amendments thereto.You are not to be 8. concerned with or liable for,any memoranda or other agreements between the parties as contained in the attached 9. document,except those relating to the transfer of title,prior to the close of escrow.the parties to this transaction wil 10 cause any balance of funds due and or documents required to be deposited with you. 11. 12. THE FOLLOWING ADDITIONAL TERMS AND CONDITIONS SHALL APPLY IN THIS ESCROW: 13, 14. The following supplemental escrow instructions,are added for clarification purposes and for the purposes of enabling M Chicago Title Company as Escrow Holder to utilize said agreement as your escrow instructions.In the event of a 16, conflict between the agreement and the escrow holder's general provisions the terms of the agreement shall control. 17, Is. THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS hands you a Grant Deed 19, conveying the property described herein to vestee named below; 20. 21. "PARTNERS LAND DEVELOPMENT,L-C,AN ARKANSAS LIMITED LIABILITY CORPORATION"buyer(s)herein; 22. 23. which you are instructed to use when you can obtain a CLTA OWNERS POLICY and any policy required by buyer's 24. lender,(IF ANY)which policies of title insurance will contain the insuring clauses,exceptions,exclusions,provisions 25 and stipulations customarily contained in the printed provisions of such form with liability not less than$2,760,000 00 2e. describing the land in the City of Palm Springs County of RIVERSIDE State of California,described as: 27. 28. APN 681-808-016,marked as parcel EXHIBIT A,which is attached hereto and incorporated herein by reference, 29. COVERING approximately 8.78 acres per survey,vacant land in Palm Springs,California. 30. 31. Subject to: 1. Real Property General and special taxes for fiscal year 2005/2006,and subsequent years,including 32, reassessments if any and including any special district levies or personal property taxes,payment for which are 33. included therein and collected therewith and improvement bond assessments,when applicable. 34. 35. 2, The Lien of Supplemental Taxes,If any,assessed pursuant to the provisions of Chapter 3.5(commencing with 36 Section 75)of the Revenue and Taxation Code of the State of California. 37. 3e. 3. Covenants,conditions,restrictions,rights of way,easements and reservations of record. 3s, ADDITIONAL INSTRUCTIONS: 40. 41. A. The"Effective Date"as referenced in the Agreement is October 31,2005. 42, 43. The date of the"Opening of Escrow"as referenced in the the Agreement is October 28,2005. 44. 45. The date referenced of the Agreement for Seller's delivery of the documents to Buyer being five(5)days after 46. the Acceptance Date is November 2,2005. 47. 49. Purchase price is TWO MILLION,SEVEN HUNDRED AND SIXTY THOUSAND DOLLARS($2,760,000.00). 49. Ehsn-m/n/sank (page 1) ESCROW INSTRUCTIONS (Continued) TO: CHICAGO TITLE COMPANY Escrow No 5205OD42A-K42 Dais October 25,2005 t 2. Buyer's deposit shall be Invested by Escrow Holder In accordance with the provisions of the Agreement ' 3. only upon Escrow Holder's receipt from Buyer of the executed investment instructions and completed and executed 7B 4. Farm W-9 rw m 1 o N a. The"Close of Escrow"as referenced In the Agreement shall be on or before NOVEMBER 7,2005. 2 a. SUBJECT TO AND CONTINGENT UPON; 0 m This escrow is to close concurrent with Sellers'Escrow#52050042,with Chicago Title Escrow Company. \ O p 11. B Pursuant to the provisions of Section 411 of the Agreement,Closing costs shall be allocated between Buyer 12 and Seller per their individual estimated closings statements which will be approved prior to the close of escrow. aNi 13. Seller and Buyer shall each pay$1,50o Do representing one-half of the Escrow Fee. "o all 14 15. In the event the real property taxes have not been segregated for subject property,Escrow Holder shall be �- 16 provided with specific instructions from Seller and Buyer as to the amount o be used for the proration of taxes as E 17 referenced in the Agreement Further,Escrow Holder shall be notified in writing by S3ller and Buyer of any other p 13 proratlons to be made through the closing of this escrow. - - 19. 20 Parties shall notify escrow holder,in writing,prior to close of escrow,if Parties elects to effect a tax deferred 21 exchange through this escrow In the event escrow holder does not receive written notification from Buyer or Seller, - 22 escrow holder will close this escrow without any provisions for an exchange for the benefit of either Buyer or Seller. - 23. 24 C. Buyer shall furnish Escrow Holder with a completed Preliminary Change of Ownership Report required by 25 Assembly bill 3121,State of California In the event said report Is not handed Escrow Holderfor submission to the 26 County Recorder upon recording the Grant Deed,Buyer herein acknowledges that the County shall access an 27. additional$20 00 feet for recording Grand Deed and Escrow Holder shall debt the Buyer for same.Escrow Holder 2e shall he relieved of all responsibility and or liability in connection with the accuracy,completeness or correctness 29. 30 Parties to this transaction are aware and understand that as a result of the passage of the Tax Reform Act of 31. 1986 which added Section 6o45(e)to the Internal Revenue Code,the closing of this transaction will be delayed In the 32. event Seller(s)to this escrow should refuse to remit to Escrow Agent/Holder,prior to close of escrow,"Seller's Be. Certiflcadon for Compliance with Real Estate Reporting Requirements,"with all necessary information fully completed 34 and duly executed 35, 35 Escrow Holder shall not be concerned with,or liable for payment,adjustment or proration of,Supplemental 37 Taxes assessed pursuant to Chapter 498,Statutes of 1983,State of California,unless specifically reflected on the Tax 38. Assessor's rolls All assessments not shown on the tax rolls are to be adjusted outside of escrow.The tide policy will 39 contain an exception for the lien of any assessmentof Supplemental Taxes assessed pursuant to Chapter 498, 46. Statutes of 1933. 41 42 THIS ACCEPTANCE OF AN AGENCY AS ESCROW HOLDER IS FURTHER CONDITIONED ON THE FOLLOWING. 43 44 1. ESCROW HOLDER'S GENERAL PROVISIONS WHICH ARE INCORPORATED HEREIN BY THIS REFERENCE 45 AND ATTACHED HERETO; 46. 47. 2 ESCROW HOLDER RESERVES THE RIGHT TO REQUIRE MUTUAL INSTRUCTIONS IN THE EVENT THIS e nwn-�on<ie Sn (Page 2) ESCROW INSTRUCTIONS (Continued) TO: CHICAGO TITLE COMPANY escrow No. 52050042A-K42 oete October 25.2005 1 ESCROW IS TERMINATED,AND UPON ANY SUCH TERMINATION TITLE AND/OR ESCROW CHARGES FOR 2 SERVICES RENDERED MAY BE DUE; 3 4 3. ESCROW HOLDER RESERVES THE RIGHT TO REQUIRE MUTUAL DISBURSEMENT INSTRUCTIONS IN THE 5 EVENT SUCH DISBURSEMENT IS TO BE MADE PURSUANT TO EARLY RELEASE PROVISIONS,THE 5, TERMINATION OF ESCROW OR A LIQUIDATED DAMAGE PROVISION CONTAINED IN SAID AGREEMENT, 9 3. 4. ESCROW HOLDER RESERVES THE RIGHT TO REQUIRE THE PARTIES TO DELIVER WRITTEN APPROVAL, 9 SATISFACTION OR WAIVER OF ALL CONDITIONS PRECEDENT TO(1)ANY RELEASE OF FUNDS AND/OR(2) 10 CLOSE OF THIS ESCROW, 11. 12 5. ANY PROVISIONS FOR RELEASE(PAYMENT)OF FUNDS PRIOR TO THE CLOSE OF ESCROW IS MADE WITH 13. THE KNOWLEDGE OF THE CONDITION(S)OF ESCROW AND TITLE TO THE PROPERTY THAT IS THE SUBJECT 14 OFTHISESCROW. ESCROW HOLDER SHALL HAVE NO RESPONSIBILITY OR LIABILITY EXCEPT COMPLIANCE 15 WITH ANY SUCH RELEASE(PAYMENT)INSTRUCTION AND ANY PAYMENT 50 MADE IS WITHOUT RECOURSE 15. UPON CHICAGO TITLE COMPANY; 17. 13 6. IF YOU WANT TO WIRE TRANSFER FUNDS TO CHICAGO TITLE COMPANY,PLEASE USE THE FOLLOWING 19 WIRING INSTRUCTIONS BANK UNION BANK 20 2001 MICHELSON DRIVE 21 IRVINE,CALIFORNIA 92714 22 SANKABA 122D004S6 23 ACCOUNT NAME; CHICAGO TITLE C&I ESCROW ACCOUNT 24 ACCOUNTNO: 9120052850 25 FOR CREDIT TO ESCROW NO 52060042A-1<42 26' ATTN: UNDASALCIDO 27 PLEASE NOTIFY ESCROW HOLDER WHEN YOU WIRE FUNDS. 28. 2e Parties,acknowledge that depending on the type(commercial,residental)and Location(city)of real property so involved in this Escrow,there may he disclosure(s)as well as civil ordinance requiement(s)that would affect the 31 transfer of the real property.The Buyer and Sellers signature on these instructions shall be deemed evidence by 32 escrow holder that Buyer and Seller have obtained counsel,are aware of any disclosures/civil ordinance 33 requirements will comply with same outside of escrow Unless otherwise instructed in writing to the contrary 34 elsewhere herein,Escrow Holder shall have no responsibilities or liabilities in connnection herewith except as 35, provided under the designation agreement 35. 37 Buyer and Seller acknowledge that they have been advised to seek the counsel of their awn Attorney, as. Accountant or other advisor and are relying solely on their inquiry and information.There are no Real Estate Agents in 39 connection with this escrow. Buyer and Seller agree that Escrow Holder is not to be held liable,responsible or 45 concerned with any such requirements or regulations,except as set forth in these instructions 41. 42 Escrow holder shall not he liable or responsible for the content or enforceability of anydocument(s)drawn outside of 43 escrow. Escrow holder's only responsibility in connection with said document(s)is to deliver and/or to record same 44 as per the parties instructions. 45 45. End of Instructions. 47. anrosx-,a1,4lsbe. (Page 3) GENERAL PROVISIONS TO: CHICAGO TITLE COMPANY Perin=Nn. 52050042A - X42 Data October 25, 2005 1 Time rs of the essence of these instructions.It Nis escrow is nor in a condition to close by the TIME LIMIT DATE as provided for herein and written demand for cancellatlon is r...ie.d by you from any principal to this escrow other Bald base,you shell actin accordance with paragraph of the General Provisions.If no conflicting Instruction or demand for cancellation is made,you will proceed to close this escrow when the pllnB,,.IB have complied tvth the escrow Instructions In the event one or more of the General Provisions are held to be Invalid,these remaining will continue to be operative.My amendments of or supplements to any Instructions affecting escrow must be In writing You are authorized to order demands for,and pay at the close of esomw any encumbrances ei record necessary to place title in the conddron calletl for tolhout further authorization.You are further authorized,prior to the close of escrow,to pay from funds on deposit any fees necessary In obtain any demand and/or repot as may be required In this escrow and at the close of escrow charge the paNes as appropriate The principals wil hand you any funds and Instruments required from each respectively to complete this escrow Interest on any new financing may begin to accrue on the date loan funds/proceeds are disbursed by the new leader,and borowrer agrees 1.pay same in accordance all lender's lnslruc0ons 2 You are indWcted to deliver and/or record all documents and disburse all funds when you can comply with these instructions and issue any title insurance policy as Celled for herein.These insinuations,together with any amendments and/or supplements,may be executed in counterparts and together shall constitute one and the same document.Ifthese instructions relate to a sale,and if there is he other written agreement between the paNes pertaining thereto,buyer agrees to buy and seller agrees to sell upon the terms and conditions hereof.NI document.,balances and statements due the undersigned are to be mailed to the respective addresses shown herein,unless otherwise directed.In the event that any party to this escrow utilizes lace ncle transmitted signed documents,all panes hereby agree to accept and hereby instruct the escrow holder 10 only upon such documents as If they bore original signatures.Puyer and seller further acknowledge that any documents to he recorded bearing non original(facsimile)signatures will not he accepted for recording by the county recorder 3 The phrase'close ofescrow"(or COE)as used in this escrow means the dale on which documents are recorded,unless otherwise speoifed. 5 Assume a 3D day month in any proration herein provided,and unless otherwise Instructed,you are to use the information canlained in the latest available lax statement,Including any supplemental taxes of record,rental statement as provided by seller and beneficiary's or association statements delivered into escrow for proration purposes. 5 Upon close of escrow you are tstmowd to charge our caspectiva accounts the cols attnbulable beach,including but not limited to are as provided for herein and/or In accordance with our respective estimated statements attached hereto and made a pan hereof a Recordation of any Instruments delivered through this escrow,if necessary or proper for the Issuance of the policy of title Insurance called to,, is authorized.No examination or insurance as 10 the amount or payment of personal property taxes is required unless specrinally requested Y If demand to cancel is suhmihetl aher the Time Limit Data any principal Be requesting you to cancel this escrow shall file notice of demand Is noel in your office in win,You shall within three(3)working days thereafter mall by b nned mail one copy of such notice to each of the .,her principols at the address stated In Nls escrow Unless written objection thereto Is filed In your office by a principal within fifteen(15) calendar days after IM1e data of such mshng,you are Instructed to cancel this escrow.If this is a sale east=,you may return the lentler'. papers and/or funds upon lender's demand, 5. In the.,.at that this escrow Is canceletl,any fees or charges due Chicago Title Company Including cancellation fees and any accordance incurred or authorized shall be paid from funds on deposit unless otherwise specifically agreed to of determined by a court of competent jurisdlctlon.Upon payment thereof,return documents and monies to the respective panes depositing same,or as ordered by the each,and wind any execuletl instruments 9. If there is no written activity by a principal to this escrow within any six month period after the Time their Date set forth herein,Chicago Title Company may,at its option,terminate its agency obligation and cancel this escrow,returning all documents,monies or other Items held,to the respective panes entitled thereto,less any fees and charges as provided herein 10 If,for any reason,funds are retained or remain in escrow after the closing date,you may deduct therefrom a reasonable charge as cuslodian, of not less than$25 00 per month,unless otherwise specned (Continued) aeaarsn-tofaafea.a, GENERAL PROVISIONS (Continued) TO: CHICAGO TITLE COMPANY En.c.114o. 52050042A - K42 Data October 25, 2005 11. In the event that you should receive or become aware of conflicting demands or claims vath respect fo this escrow,or the rights of any of the patties hereto,or any money or property deposited herein,you shall have the absolute right at your option to d econtinue any or all further acts arml Such 01 resolved to your sut'Sp Don 12, In the event that any Cliff to Purchase,Deposal Receipt,or any an.,form of Purchase Agreement1s deposited in this escrow,you,as escrow holder,are not to be concerned ,.in the terms of such document and are retleveE of all«epos lbdlty is connection therewith The foregomg Is not applicable in any transaction In SJch Chicago Title has specifically agreed to accept an Offer to Purchase,Deposit Receipt or other form of Purchase Agreement as escrow ihauh.tmns.In any event,you are not to be concerned or liable for items designated as"memoranda'In these escrow Instructions nor with any other agreement or contract between the parties 13. The polies hereto,by execution of these Instructions acknowledge that the escrow holder assumes no responsibility or liability whatsoever for the supervision of any act or the performance of any condition which as a conditlrn subsequent to the Closing of this escrow. 14 In the absence of lnsiruchons to the contrary,you are hereby a chaI to Mice wire services,overnight,next day,or When expd ind! Survey services(as opposed to the regular U.S.Mall)and to charge the respective party's account accordingly. 15. Con-hrilng any real property revolved in this tharsotlon you are released from and shall have no liability,Obligation or responsibility with respect to(a)withholding of funds pursuant to Section 1445 of the Internal Revenue Code of 1966 as amended,and to Sections 18662 and 16666 of the California Revenue and Taxation Code,(b)advising the Paribas as 10 the requirements of said Section 1445,(a)determining Whether the transferor Is n foreign person or o non-resident under such Section,nor(d)obtaining a non foreign affidavit or other exemption from withholding under said Sections nor otherwise making any Inquiry concerning compliance with such Sections by any parry to the transaction. 16 If you pay a demand to pay in full a revolving line of credit or egmtyline loan,you are hereby refused on my behalf and for my benefit,to request that the lender issuing said demand cancel said revolving line or eguityime of credit. 17 You are authorized to furnlsh to any affiliate of Chicago Title Company,any altomey,broker or lender Identified with this transaction or any one acting on behalf of such lender any reformation,instructions,amendments,statements,or notices of cancellation given In connectlon with this escrow H any check Submiaed to escrow Is dishonored when prasented for payment,you are aulhonzed fe notify all prinapais and/or their respective agents of such non payment. 10 All nollces,change of lrebruchars,communications and documents are to be delivered in writing to the office of Chicago Title Company,as .at faith herein. 19 of hindensawed is this escrow shall be deposited with other escrow funds In one or more non-bnlerest bearing demand accounts of Chicago Title Company in any state or fetleraI bank or any state or federal savings and loan assomatlon("the Separately institutions")and may be transferred to any other such accounts. The partes to this escrow acknowledge that whlle these accounts do not bear interest,because of these antl other banking relationships with the depository instilulons,Chicago Title Company and its offtllates may receive from some of the depository institutions an array,of banking sarri motlatlons or other banefds Chicago Tile Company and its affiliates also may elect to enter into other business transactions with or obtain loans for investment or other purposes from some of the depository,Institutions All of such services,accommodations and other benefits shall accrue,diresty or indirectly,to Chicago TIOe Company and its affiliates and they shall have no obligation to account to the parties to this escrow for the value of such services,accommodations or other bensfic.Al disbursements shall be made by Chicago Title Company check,unless mherwlse menaced Chicago Title Company shall not be responsible for any delay in closing If funds received by escrow the not available for immediate vathdrati Chicago Tllle Company may,at Its option,require connuneni Instructions from all pnncipals prior to release of any funds on deposit In this escrow. 26 You are auIDonzed to destroy or otherwise dispose of any and all documents,papers,instructions,correspondence and other material pertalning to this escrow at the expiration of six(6)years from the close of escrow or cancellation thereof,without totally and without further notice. (Continued) Rahat"anoraeteee. GENERAL PROVISIONS (Continued) TO: CHICAGO TITLE COMPANY E.row No. 5205DD42A - K42 Date October 25, 2005 IMPORTANT NOTICE Except for wire transfers,funds remitted to this escrow are subject to availabllity requirements imposed by Section 12413,1 of the California Insurance Code. CASHIER'S, CERTIFIED or TELLER'S checks, payable to CHICAGO TITLE COMPANY are generally available for disbursement on the next business day following the date of deposit Other Terms of payment may cause Worried delays m the closing Df your transaction pursuant to the requirements imposed by State Law, Wire transfer information available upon request) ALL PARTIES TO THIS ESCROW ACKNOWLEDGE THAT CHICAGO TITLE COMPANY DOES NOT PROVIDE LEGAL ADVICE NOR HAS IT MADE ANY INVESTIGATION, REPRESENTATIONS OR ASSURANCES WHATSOEVER REGARDING THE LEGAL ASPECTS OR COMPLIANCE OF THIS TRANSACTION WITH ANY TAX,SECURITIES OR ANY OTHER STATE OR FEDERAL LAWS.IT IS RECOMMENDED THAT THE PARTIES OBTAIN INDEPENDENT LEGAL COUNSEL AS TO SUCH MATTERS. THE FOREGOING ESCROW INSTRUCTIONS AND GENERAL PROVISIONS HAVE BEEN READ AND ARE UNDERSTOOD AND AGREED TOBY EACH OF THE UNDERSIGNED. COMPLIFITY REDEVELOPMENT AGENCY PARTNERS LAND DEVELOPMENT, LLC, AN OF THE CITY OF PALM SPRINGS, CALIFORNIA =,VISAS LIMITED LIABILITY CORPORATION A P➢BLIC BODY, CORPORATE AND POLITIC BY: ITS; BY: CHAIRMAN ATTEST: BY: ITS: BY ASSISTANT SECRETARY APPROVED AS TO FORM, WOODRUFF, SPR.AILIN & SMART BY: DODGLAS C. HOLIPUD, AGENCY COUNSEL Current Address: Current Address: Telephone Telephone eeacss. vice e CHICAGO TITLE COMPANY SIGN AND RETURN ESTIMATED SELLER'S SETTLEAMT STATEMENT ESCROW 2A-001 ORDER NUMBER: 05>40-5205004 PAGE. O1 NUF@ER: 05740-52050042A CLOSING DATE 11/09 OS / CLOSER: LINDA SALCIDO BUYER: SELLER. PROPERTY: vacant land APE 681-090-016, palm Springs, CALIFORNIA Sales Price CHARGE SELLER CREDIT SELLER FUNDS TRANSFER9D TO 5235042 00 Settlement or Closing Fee To CHICAGO TITLE 830,000.00 Document Preparation To CHICAGO TITLE 11500.00 Recording Fees 25,00 CitTax hold 2004/2005a2nd half taxes plus 528.00 P penalties 0,518.00 natural fiazards 10,]24 69 Funds Due To Seller At Closing 50.00 1,916,082.32 TOTALS $ 2,760,000.00 $ 2,960,000.00 C N O 2 � COMMUNITY REDEVELOPMENT AGENCY � OF THE CITY OF PALM SPRINGS, CALIFORN IA 0 ] C A PUBLIC BODY, CORPORATE An POLITIC O pp y \ Bx: u'Y1 �v ID C CHAIA14nN P. TEST: 1 /r UL ev. E ` ASSjSTANT 5� ECR— E NY�i':i'.'7 i+..T �. ::. fI',.�_ LL j APP4C. HO BF; WOOLBY: CYTDOIIAGENCY COUNSEL DATE: 11/02/05 17:08:3 CHICAGO TITLE COMPANY" 78-000 Fred Waring Drive, SUITE 103, PALM DESERT, CALIFORNIA 92211 (760)345-0750 Fax (760)772-8463 November 2,2005 .JOHN S. RAYMOND COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS 3200 E.TAHQUITZ CANYON WAY PALM SPRINGS, CA 92263 Ile:vacant land APN 681-070-016, Palm Springs, CALIFORNIA Escrow No:52050042 Dear Mr. Raymond: In connection with the above referenced escrow,we enclose the following items: PLEASE SIGN AND RETURN (RETAIN ADDITIONAL COPY FOR YOUR FILES): Escrow Instructions Property Disclosure Report Approval-copy of report for your records Preliminary Title Report Approval-copy for your records Tax Withholding Notice (for your information, no signature required) Estimated Closing Statement If we can provide any additional information or answer any questions you may have, please give us a call. Thank you for choosing Chicago Title Company. Sincerely, CHICCAA,GOO TITLE COMPANY vvV Linda Salcido Escrow Officer B2LTR--06/22/,%bk ESCROW INSTRUCTIONS SIGN AWL) RETURN TO: CHICAGO TITLE COMPANY, licensed by the California Department of Insurance 0 78-000 Fred Waring Drive, SUITE 103, PALM DESERT, CALIFORNIA 92211 (760)345-0750 Fax(760)772-8463 Escrow No. 52050042A-K42 Escrow Officer LINDA SALCIDO Date October 25, 2005 1 On or before the TIME LIMIT DATE of on or before November 7, 2005 2. 3. The undersigned hands you a"2005 Disposition and Development Agreement"dated October 25,2005, hereinafter 4. the"Agreement", executed by"The Community Redevelopment Agency of the City of Palm Springs, as Seller and 5. "Partners Land Development, LLC, an Arkansas limited liability Corporation", as Buyer 6. 7. You are authorized to act in accordance with these instructions,and any amendments thereto.You are not to be 8. concerned with or liable for, any memoranda or other agreements between the parties as contained in the attached 9. document, except those relating to the transfer of title, prior to the close of escrow.the parties to this transaction wil 10. cause any balance of funds due and or documents required to be deposited with you. 11. 12. THE FOLLOWING ADDITIONAL TERMS AND CONDITIONS SHALL APPLY IN THIS ESCROW: 13. 14. The following supplemental escrow instructions,are added for clarification purposes and for the purposes of enabling 15. Chicago Title Company as Escrow Holder to utilize said agreement as your escrow instructions. In the event of a 18. conflict between the agreement and the escrow holder's general provisions the terms of the agreement shall control. 17, 1s. THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS hands you a Grant Deed 19. conveying the property described herein to vestee named below; 20. 21. "PARTNERS LAND DEVELOPMENT, LLC,AN ARKANSAS LIMITED LIABILITY CORPORATION"buyer(s) herein; 22. 23. which you are instructed to use when you can obtain a CLTA OWNERS POLICY and any policy required by buyer's 24. lender,(IF ANY)which policies of title insurance will contain the insuring clauses, exceptions, exclusions, provisions 25. and stipulations customarily contained in the printed provisions of such form with liability not less than$2,760,000.00 26. describing the land in the City of Palm Springs County of RIVERSIDE State of California, described as: 27. 28. APN 681-808-016, marked as parcel EXHIBIT A,which is attached hereto and incorporated herein by reference, 29. COVERING approximately 8.78 acres per survey,vacant land in Palm Springs, California. 30. 31. Subject to: 1. Real Property General and special taxes for fiscal year 2005/2006, and subsequent years, including 32. reassessments if any and including any special district levies or personal property taxes, payment for which are 33. inc0uded therein and collected therewith and improvement bond assessments,when applicable. 34. 35• 2. The Lien of Supplemental Taxes, if any, assessed pursuant to the provisions of Chapter 3.5 (commencing with 36. Section 75) of the Revenue and Taxation Code of the State of California. 37. 38. 3. Covenants, conditions, restrictions, rights of way, easements and reservations of record. 39. ADDITIONAL INSTRUCTIONS: 40. 41, A. The"Effective Date"as referenced in the Agreement is October 31, 2005. 42. 43. The date of the"Opening of Escrow"as referenced in the the Agreement is October 28,2005. 44. 45. The date referenced of the Agreement for Seller's delivery of the documents to Buyer being five (5) days after 46. the!Acceptance Date is November 2,2005. 47. 48. Purchase price is TWO MILLION, SEVEN HUNDRED AND SIXTY THOUSAND DOLLARS ($2,760,000.00). 49. DISH -10/11/gsbk (Page 1) ESCROW INSTRUCTIONS (Continued) TO: CHICAGO TITLE COMPANY Escrow No. 52050042A-K42 Date October 25,2005 7. 2. Buyer's deposit shall be invested by Escrow Holder in accordance with the provisions of the Agreement 3. only upon Escrow Holder's receipt from Buyer of the executed investment instructions and completed and executed 4. Form W-9. 5. 6• The"Close of Escrow"as referenced in the Agreement shall be on or before NOVEMBER 7, 2005. 7. 8• SUBJECT TO AND CONTINGENT UPON; 9. This escrow is to close concurrent with Sellers'Escrow#52050042,with Chicago Title Escrow Company. 10. 11. B. Pursuant to the provisions of Section 411 of the Agreement, Closing costs shall be allocated between Buyer 12. and Seller per their individual estimated closings statements which will be approved prior to the close of escrow. 13. Seller and Buyer shall each pay$1,500.00 representing one-half of the Escrow Fee. 14. 15. In the event the real property taxes have not been segregated for subject property, Escrow Holder shall be 16 provided with specific instructions from Seller and Buyer as to the amount to be used for the proration of taxes as 17. referenced in the Agreement. Further, Escrow Holder shall be notified in writing by Seller and Buyer of any other 18, prorations to be made through the closing of this escrow. 19. 20. Parties shall notify escrow holder, in writing, prior to close of escrow, if Parties elects to effect a tax deferred 21. exchange through this escrow. In the event escrow holder does not receive written notification from Buyer or Seller, 22. escrow holder will close this escrow without any provisions for an exchange for the benefit of either Buyer or Seller. 23. 24. C. Buyer shall furnish Escrow Holder with a completed Preliminary Change of Ownership Report required by 25. Assembly bill 3121, State of California. In the event said report is not handed Escrow Holder for submission to the 26, County Recorder upon recording the Grant Deed, Buyer herein acknowledges that the County shall access an 27. additional$20.00 feet for recording Grand Deed and Escrow Holder shall debit the Buyer for same. Escrow Holder 28. shall be relieved of all responsibility and or liability in connection with the accuracy, completeness or correctness 29. 30. Parties to this transaction are aware and understand that as a result of the passage of the Tax Reform Act of 31. 1986 which added Section 6045(e)to the Internal Revenue Code,the closing of this transaction will be delayed in the 32. event Seller(s)to this escrow should refuse to remit to Escrow Agent/Holder, prior to close of escrow, "Seller's 33, Certification for Compliance with Real Estate Reporting Requirements,"with all necessary information fully completed 34. and duly executed. 35. 36. Escrow Holder shall not be concerned with, or liable for payment, adjustment or proration of, Supplemental 37. Taxes assessed pursuant to Chapter 498, Statutes of 1983, State of California, unless specifically reflected on the Tax 38. Assessor's rolls. All assessments not shown on the tax rolls are to be adjusted outside of escrow.The title policy will 39. contain an exception for the lien of any assessmentof Supplemental Taxes assessed pursuant to Chapter 498, 40. Statutes of 1983. 41. 42. THOS ACCEPTANCE OF AN AGENCY AS ESCROW HOLDER IS FURTHER CONDITIONED ON THE FOLLOWING: 43. 44. 1. (ESCROW HOLDER'S GENERAL PROVISIONS WHICH ARE INCORPORATED HEREIN BY THIS REFERENCE 45. AND ATTACHED HERETO; 46. 47. 2. 'ESCROW HOLDER RESERVES THE RIGHT TO REQUIRE MUTUAL INSTRUCTIONS IN THE EVENT THIS 13EIl CSH--10/14/96bk (Page 2) ESCROW INSTRUCTIONS (Continued) TO: CHICAGO TITLE COMPANY Escrow No. 52050042A-K42 Date October 25, 2005 1. ESCROW IS TERMINATED,AND UPON ANY SUCH TERMINATION TITLE AND/OR ESCROW CHARGES FOR 2. SERVICES RENDERED MAY BE DUE; 3. 4. 3. ESCROW HOLDER RESERVES THE RIGHT TO REQUIRE MUTUAL DISBURSEMENT INSTRUCTIONS IN THE 5• EVENT SUCH DISBURSEMENT IS TO BE MADE PURSUANT TO EARLY RELEASE PROVISIONS,THE 6. TERMINATION OF ESCROW OR A LIQUIDATED DAMAGE PROVISION CONTAINED IN SAID AGREEMENT; 7. 8• 4. ESCROW HOLDER RESERVES THE RIGHT TO REQUIRE THE PARTIES TO DELIVER WRITTEN APPROVAL, 9. SATISFACTION OR WAIVER OF ALL CONDITIONS PRECEDENT TO (1)ANY RELEASE OF FUNDS AND/OR (2) 10. CLOSE OF THIS ESCROW; 11. 12. 5. ANY PROVISIONS FOR RELEASE (PAYMENT) OF FUNDS PRIOR TO THE CLOSE OF ESCROW IS MADE WITH 13. THE:KNOWLEDGE OF THE CONDITION(S) OF ESCROW AND TITLE TO THE PROPERTY THAT IS THE SUBJECT 14. OF THIS ESCROW. ESCROW HOLDER SHALL HAVE NO RESPONSIBILITY OR LIABILITY EXCEPT COMPLIANCE 15. WITH ANY SUCH RELEASE (PAYMENT) INSTRUCTION AND ANY PAYMENT SO MADE IS WITHOUT RECOURSE 16. UPON CHICAGO TITLE COMPANY; 17. 1e. 6. IF YOU WANT TO WIRE TRANSFER FUNDS TO CHICAGO TITLE COMPANY, PLEASE USE THE FOLLOWING 19. WIRING INSTRUCTIONS: BANK: UNION BANK 20• 2001 MICHELSON DRIVE 21. IRVINE, CALIFORNIA 92714 22. BANK ABA: 122 000 496 23. ACCOUNT NAME: CHICAGO TITLE C&I ESCROW ACCOUNT 24. ACCOUNT NO: 9120052850 25. FOR CREDIT TO: ESCROW NO.52050042A-K42 26. ATTN: LINDA SALCIDO 27. PLEASE NOTIFY ESCROW HOLDER WHEN YOU WIRE FUNDS. 28. 29, Parties acknowledge that depending on the type(commercial, residental) and Location (city) of real property 30. involved in this Escrow,there may be disclosure(s) as well as civil ordinance requiement(s)that would affect the 31. transfer of the real property.The Buyer and Sellers signature on these instructions shall be deemed evidence by 32. escrow holder that Buyer and Seller have obtained counsel, are aware of any disclosures/civil ordinance 33. requirements will comply with same outside of escrow. Unless otherwise instructed in writing to the contrary 34. elsewhere herein, Escrow Holder shall have no responsibilities or liabilities in connnection herewith except as 35. provided under the designation agreement. 36. 37. Buyer and Seller acknowledge that they have been advised to seek the counsel of their own Attorney, 33. Accountant or other advisor and are relying solely on their inquiry and information.There are no Real Estate Agents in 39. connection with this escrow. Buyer and Seller agree that Escrow Holder is not to be held liable, responsible or 40. concerned with any such requirements or regulations, except as set forth in these instructions. 41. 42. Escrow holder shall not be liable or responsible for the content or enforceability of any document(s) drawn outside of 43. escrow. Escrow holder's only responsibility in connection with said document(s) is to deliver and/or to record same 44. as per the parties instructions. 45. 46. End of Instructions. 47. BEIICSH-10/14/96bk (Page 3) GENERAL PROVISIONS TO: CHICAGO TITLE COMPANY Escrow No. 52050042A - K42 Date October 25, 2005 1. Time is of the essence of these instructions. If this escrow is not in a condition to close by the TIME LIMIT DATE as provided for herein and written demand for cancellation is received by you from any principal to this escrow after said date,you shall act in accordance with paragraph 7 of the General Provisions. If no conflicting instruction or demand for cancellation is made,you will proceed to close this escrow when the principals have complied with the escrow instructions. In the event one or more of the General Provisions are held to be invalid, those remaining will continue to be operative.Any amendments of or supplements to any instructions affecting escrow must be in writing.You are authorized to order demands for, and pay at the close of escrow any encumbrances of record necessary to place title in the condition called for without further authorization.You are further authorized, prior to the close of escrow,to pay from funds on deposit any fees necessary to obtain any demand and/or report as may be required in this escrow and at the close of escrow charge the parties as appropriate. The principals will hand you any funds and instruments required from each respectively to complete this escrow. Interest on any new financing may begin to accrue on the date loan funds/proceeds are disbursed by the new lender,and borrower agrees to pay same in accordance with lender's instructions. 2. You are instructed to deliver and/or record all documents and disburse all funds when you can comply with these instructions and issue any title insurance policy as called for herein. These instructions, together with any amendments and/or supplements, may be executed in counterparts and together shall constitute one and the same document. If these instructions relate to a sale,and if there is no other written agreement between the parties pertaining thereto, buyer agrees to buy and seller agrees to sell upon the terms and conditions hereof. All documents, balances and statements due the undersigned are to be mailed to the respective addresses shown herein, unless otherwise directed, In the event that any party to this escrow utilizes facsimile transmitted signed documents, all parties hereby agree to accept and hereby instruct the escrow holder to rely upon such documents as if they bore original signatures. Buyer and seller further acknowledge that any documents to be recorded bearing non original (facsimile)signatures will not be accepted for recording by the county recorder. 3. The phrase"close of escrow"(or COE)as used in this escrow means the date on which documents are recorded,unless otherwise specified. 4. Assume a 30 day month in any proration herein provided, and unless otherwise instructed, you are to use the information contained in the latest available tax statement, including any supplemental taxes of record, rental statement as provided by seller and beneficiary's or association statements delivered into escrow for proration purposes. S. Upon close of escrow you are instructed to charge our respective accounts the costs attributable to each,including but not limited to costs as provided for herein and/or in accordance with our respective estimated statements attached hereto and made a part hereof. 6. Recordation of any instruments delivered through this escrow,if necessary or proper for the issuance of the policy of title insurance called for, is.authorized.No examination or insurance as to the amount or payment of personal property taxes is required unless specifically requested. 7. If demand to cancel is submitted after the Time Limit Date,any principal so requesting you to cancel this escrow shall file notice of demand to cancel in your office in writing.You shall within three (3)working days thereafter mail by certified mail one copy of such notice to each of the other principals at the address stated in this escrow. Unless written objection thereto is filed in your office by a principal within fifteen (15) calendar days after the date of such mailing, you are instructed to cancel this escrow. If this is a sale escrow, you may return the lender's papers and/or funds upon lender's demand. 8. In the event that this escrow is canceled,any fees or charges due Chicago Title Company including cancellation fees and any expenditures Incurred or authorized shall be paid from funds on deposit unless otherwise specifically agreed to or determined by a court of competent jurisdiction. Upon payment thereof, return documents and monies to the respective parties depositing same,or as ordered by the court,and void any executed instruments. 9. If there is no written activity by a principal to this escrow within any six-month period after the Time Limit Date set forth herein,Chicago Title Company may, at its option,terminate its agency obligation and cancel this escrow, returning all documents, monies or other items held,to the respective parties entitled thereto,less any fees and charges as provided herein. to. If,for any reason,funds are retained or remain in escrow after the closing date,you may deduct therefrom a reasonable charge as custodian, of not less than$25.00 per month,unless otherwise specified. (Continued) BEIGN SH-10/23/99-Im GENERAL PROVISIONS (Continued) TO: CHICAGO TITLE COMPANY Escrow No. 52050042A - K42 Date October 25, 2005 11. In the event that you should receive or become aware of conflicting demands or claims with respect to this escrow,or the rights of any of the parties hereto,or any money or property deposited herein,you shall have the absolute right at your option to discontinue any or all further acts until such conflict is resolved to your satisfaction. 12. In the event that any Offer to Purchase,Deposit Receipt,or any other form of Purchase Agreement is deposited in this escrow,you,as escrow holder,are not to be concerned with the terms of such document and are relieved of all responsibility in connection therewith.The foregoing is not applicable in any transaction in which Chicago Title has specifically agreed to accept an Offer to Purchase,Deposit Receipt or other form of Purchase Agreement as escrow instructions. In any event,you are not to be concerned or liable for items designated as"memoranda"in these escrow instructions nor with any other agreement or contract between the parties. 13. The parties hereto,by execution of these instructions acknowledge that the escrow holder assumes no responsibility or liability whatsoever for the supervision of any act or the performance of any condition which is a condition subsequent to the closing of this escrow. 14. In the absence of instructions to the contrary, you are hereby authorized to utilize wire services, overnight, next day, or other expedited deflvery services(as opposed to the regular U.S.Mail)and to charge the respective parry's account accordingly. 15. Concerning any real property involved in this transaction you are released from and shall have no liability, obligation or responsibility with respect to (a)withholding of funds pursuant to Section 1445 of the Internal Revenue Code of 1986 as amended, and to Sections 18662 and 16568 of the California Revenue and Taxation Code, (b) advising the parties as to the requirements of said Section 1445, (c) determining whether the transferor is a foreign person or a non-resident under such Section, nor (d) obtaining a non foreign affidavit or other exemption from withholding under said Sections nor otherwise making any inquiry concerning compliance with such Sections by any party to the transaction. 16. If you pay a demand to pay in full a revolving line of credit or equityline loan,you are hereby instructed on my behalf and for my benefit,to request that the lender issuing said demand cancel said revolving line or equityline of credit. 17. You are authorized to furnish to any affiliate of Chicago Title Company, any attorney, broker or lender identified with this transaction or any one acting on behalf of such lender any information,instructions,amendments,statements,or notices of cancellation given in connection with this escrow. If any check submitted to escrow is dishonored when presented for payment,you are authorized to notify all principals and/or their respective agents of such non payment. 18. All notices,change of instructions,communications and documents are to be delivered in writing to the office of Chicago Title Company,as set forth herein. 19. A@ funds received in this escrow shall be deposited with other escrow funds in one or more non-interest bearing demand accounts of Chicago Title Company in any state or federal bank or any state or federal savings and loan association ("the depository institutions") and may be transferred to any other such accounts. The parties to this escrow acknowledge that while these accounts do not bear interest,because of these and other banking relationships with the depository institutions, Chicago Title Company and its affiliates may receive from some of the depository institutions an array of banking services,accommodations or other benefits.Chicago Title Company and its affiliates also may elect to enter into other business transactions with or obtain loans for investment or other purposes from some of the depository institutions.All of such services,accommodations and other benefits shall accrue, directly or indirectly, to Chicago Title Company and its affiliates and they shall have no obligation to account to the parties to this escrow for the value of such services, accommodations or other benefits. All disbursements shall be made by Chicago Title Company check,unless otherwise instructed. Chicago Title Company shall not be responsible for any delay in closing if funds received by escrow are not available for immediate withdrawal. Chicago Title Company may, at its option, require concurrent instructions from all principals prior to release of any funds on deposit in this escrow. 20. You are authorized to destroy or otherwise dispose of any and all documents, papers, instructions, correspondence and other material pertaining to this escrow at the expiration of six (6)years from the close of escrow or cancellation thereof,without liability and without further notice. (Continued) 61JGMH-10/23/98-Irc GENERAL PROVISIONS (Continued) TO: CHICAGO TITLE COMPANY Escrow No. 52050042A - K42 Date October 25, 2005 IMPORTANT NOTICE Except for wire transfers,funds remitted to this escrow are subject to availability requirements imposed by Section 12413.1 of the California Insurance Code. CASHIER'S, CERTIFIED or TELLER'S checks, payable to CHICAGO TITLE COMPANY are generally available for disbursement on the next business day following the date of deposit. Other forms of payment may cause extended delays in the closing of your transaction pursuant to the requirements imposed by State Law. (Wire transfer information available upon request) ALL PARTIES TO THIS ESCROW ACKNOWLEDGE THAT CHICAGO TITLE COMPANY DOES NOT PROVIDE LEGAL ADVICE NOR HAS IT MADE ANY INVESTIGATION, REPRESENTATIONS OR ASSURANCES WHATSOEVER REGARDING THE LEGAL ASPECTS OR COMPLIANCE OF THIS TRANSACTION WITH ANY TAX, SECURITIES OR ANY OTHER STATE OR FEDERAL. LAWS. IT IS RECOMMENDED THAT THE PARTIES O13TAIN INDEPENDENT LEGAL COUNSEL AS TO SUCH MATTERS. THE FOREGOING ESCROW INSTRUCTIONS AND GENERAL PROVISIONS HAVE BEEN READ AND ARE U14DERSTOOD AND AGREED TO BY EACH OF THE UNDERSIGNED. COMMUNITY REDEVELOPMENT AGENCY PARTNERS LAND DEVELOPMENT, LLC, AN OF THE CITY OF PALM SPRINGS, CALIFORNIA ARKANSAS LIMITED LIABILITY CORPORATION A PUBLIC BODY, CORPORATE AND POLITIC BY: ITS; By(� CHAIRMAN ATTFiS-T--, BY: 1 . I ITS: ASZ/ STANT SECRETARY f 11 I QQ /APPROVED AS FORM; w,"�a'a \ ��,,? tv WOODRUFF S LIN/& S T BY: / [/D DOUGLAS C. LLAND, AGENCY COUNSEL Current Address: Current Address: Telephone: Telephone: BEM SH-10/23/9a-Irc Make check payable to: QK A 16' H ET H Rv o i c e#: 110105-00354 Escrow Number: APN 681 070 016 Customer Number: s 1 DISCLOSURE SOURCE' Account Number: A II VFt1IY MA]IPNAI F AIFCIAt CPM,ANY P.O. BOX 7134 N Invoice Date: 02-Nov-05 SAN FRANCISCO, CA 94120-7134 _ Invoice Amount: $49.95 Bonnie Bernard Bill To: Chicago Title To ensure proper credit, detach and return 78-000 Fred Waring Drive, Ste. 103 this portion with yourpayment and please Palm Desert, CA 92211 include the invoice number on your check Phone: (760) 345-0750 Fax: (760) 772-8463 -- - ---------------- ----------------------- - ----------------Cut Here---- - - ------------------------- INVOICE Invoice#:110105-0 03 54 DISCLOSURE SOURCE' A ..11A1 C�MIA YY P�O� BOX 7134 N Invoice Date:0 2-Nov-o s SAN FRANCISCO, CA 94120-7134 Customer Number.541050591 Fax: (800) 287-8673 • Order Bonnie Bernard Bonnie Bernard Property Address: Chicago Title VACANT 78-000 Fred Waring Drive, Chicago Title PALM SPRINGS, CA 92264 Palm Desert, CA 92211 78-000 Fred Waring Drive, 681-070-016 Phone: (760) 345-0750 Palm Desert, CA 92211 Fax: (760) 772-8463 Phone: (760) 345-0750 Fax: (760) 772-8463 ! D�e 1 Commercial Report Standard $59.95 $59. 55 1 Miscellaneous Discount ($10.00) ($10.00) Invoice Total: 1 $49.95 Escrow Instructions: Upon close of escrow,please send a Listing Agent Instructions:This DisclosureSource Report check, payable to DisclosureSource to address above. If the needs to be disclosed by the seller to the buyer of the residence escrow documents are being transferred to a new escrow, for which the report has been prepared.As the Responsible please notify DisclosureSource customer service at 800- Agent for this transaction should the escrow we were 880-9123 to update changes and transfer this invoice along instructed to bill not close, please forward this invoice to with the DisclosureSource Report to the new escrow. If this the next escrow,and inform DisclosureSource of the new escrow fails to close, lease notify the DisclosureSource pertinent data. DisclosureSource will provide the new escrow p y with an updated invoice and a copy of the report. accounting dept. at 800-833-6347 ext 181 - ,DISCLOSURE SOURCE" A FIDELITY NATIONAL LINANCIAL COIiIYANY Natural Hazard Reference Map Mandatory State Disclosures z LL w O ALONDRA AY < SP, < y A EL GAUCHO R s � a A h PO A ORONGO TRL w Z DEW GO CIR y TIT L L a ? 5\% Q- h z EL\ FKESIDE DR C � NTA ANA ST AD R Y o \ \ 2 w O �0 Y SAN A EM NOJ,E, C RL 4 D L -CDR" 00 0 r � P O O x � X\ o a ~ 0 .2 .4 Miles VACANT PALM SPRINGS, CA 92264 Map Legend ® FEMA Flood Zones IS ❑ IS NOT [Q located in a FEMA Special Flood Hazard Area. 0 Dam Inundation"nom!Zones ! ; Very High Fire Hazard Area IS ❑ IS NOT 2 located in a Dam Inundation Area. :. Midland Fire Area Earthquake Fault Zones IS ❑ IS NOT Q located in a Very High Fire Hazard Area. seismic Hazard Zones IS El IS NOT Q located in a Wildland Fire Area. City Re Re i Wa[er antl Rivers City gions IS ❑ IS NOT [Q located in an Alquist-Priolo Earthquake Fault Zone. 02-Nov-OS *IS ❑ IS NOT ❑ located in a Seismic Hazard Zone. APN:681-070-016 ERN:110105-00354 'F Please read the report This map is for your aid in locating natural hazard areas in relation to the subject property. for further information It is intended for informational purposes only The company assumes no liability(express or implied)for any loss occurring by reference,misinterpretation,misuse,or sole reliance thereon This map is not intended for use as a substitute disclosure under California Civil Code 01103.2 Copyright(9b02 DisclosureSource(R), Inc. 2950 Buskirk Avenue, Suite 310, Walnut Creek, CA 94597 (800) 880-9123 DISCLOSURE SOURCE A FIDELITY NATIONAL FINANCIAL COMPANY Natural Hazard Reference Map Expanded Disclosures w < m m O ALONDRA AY S z m E VERY DR s R PAS J K M <o EL GAUCHO R A q E E O DR p i.Q w m m UNNA EO Y m w cr {m OAF w s a o < 0 w is m 'A o ORONGO TRL �5�� x w �� A m p 9L O JO TRL > A w 2 _ OSW GO CIR m O y m m T L o �10 2 ''- T L y ? g E KESIDE DR NTA ANAS T HER SAN A O EM NOLE RL / o v " C A I L ST in D LP DR q -- 9 `YO Y� PT m 9 I F o "G w c9 A I � � rc � n 0 p 0 0 .2 .4 VACANT PALM SPRINGS, CA 92264 Map Legend ® Flood Hazard Zane. IS ❑ IS NOT 2 located in a City/County Flood Hazard Area. �r�--- High Fire H..rd Area �ffJ Fault Zones IS ❑ IS NOT 2 in a City/County High Fire Hazard Zone. ""' S=i.nic Hazy tlZnne. Bodies of Water and Rivers IS ❑ IS NOT Q in an Expanded Fault Special Studies Zone. City Region. IS ❑ IS NOT Q in an Expanded Seismic/Geologic Hazard Area. 02-Nov-05 APN:681-070-016 ERN:110105-00354 This map is for your aid in locating natural hazard areas in relation to the subject property. It is intended for informational purposes only.The company assumes no liability(express or implied)for any loss occurring by reference,misinterpretation,misuse,or sole reliance thereon This map is not intended for use as a substitute disclosure under California Civil Code 0 1103.2 Copyright 9UO2 DisclosureSource(R), Inc. 2950 Buskirk Avenue, Suite 310, Walnut Creek, CA 94597 (800) 880-9123 NATURAL HAZARD DISCLOSURE STATEMENT Escrow No: APN 681 070 016 This statement applies to the following property: VACANT, PALM SPRINGS, CA 92264 APN: 681-070-016 The transferor and his or her agent(s)or a third—party consultant disclose the following information with the knowledge that even though this is not a warranty, prospective transferees may rely on this information in deciding whether and on what terms to purchase the subject property. Transferor hereby authorizes any agent(s)representing any principal(s) in this action to provide a copy of this statement to any person or entity in connection with any actual or anticipated sale of the property. The following are representations made by the transferor and his or her agent(s) based on their knowledge and maps drawn by the state and federal governments. This information is a disclosure and is not intended to be part of any contract between the transferee and transferor. THIS REAL PROPERTY LIES WITHIN THE FOLLOWING HAZARDOUS AREA(S): A SPECIAL FLOOD HAZARD AREA (Any type Zone "A" or "V") designated by the Federal Emergency Management Agency. Yes No� Do not know/information not available from local jurisdiction AN AREA OF POTENTIAL FLOODING shown on a dam failure inundation map pursuant to Section 8589.5 of the Government Code. Yes No�_ Do not know/information not available from local jurisdiction A VERY HIGH FIRE HAZARD SEVERITY ZONE pursuant to Section 51178 or 51179 of the Government Code. The owner of this property is subject to the maintenance requirements of Section 51182 of the Government Code. Yes No VL A WILDLAND AREA THAT MAY CONTAIN SUBSTANTIAL FOREST FIRE RISKS AND HAZARDS pursuant to Section 4125 of the Public Resources Code.The owner of this property is subject to the maintenance requirements of Section 4291 of the Public Resources Code. Additionally, it is not the state's responsibility to provide fire protection services to any building or structure located within the wild-lands unless the Department of Forestry and Fire Protection has entered into a cooperative agreement with a local agency for those purposes pursuant to Section 4142 of the Public Resources Code. Yes No_ V( AN EARTHQUAKE FAULT ZONE pursuant to Section 2622 of the Public Resources Code. Yes No A SEISMIC HAZARD ZONE pursuant to Section 2696 of the Public Resources Code. Yes(Landslide Zone) Yes(Liquefaction Zone) No Map not yet released by state_V THESE HAZARDS MAY LIMIT YOUR ABILITY TO DEVELOP THE REAL PROPERTY,TO OBTAIN INSURANCE, OR TO RECEIVE ASSISTANCE AFTER A DISASTER. THE MAPS ON WHICH THESE DISCLOSURES ARE BASED ESTIMATE WHERE NATURAL HAZARDS EXIST. THEY ARE NOT DEFINITIVE INDICATORS OF WHETHER OR NOT A PROPERTY WILL BE AFFECTED BY A NATURAL DISASTER.TRANSFEREE(S)AND TRANSFEROR(S)MAY WISH TO OBTAIN PROFESSIONAL ADVICE REGARDING THOSE HAZARDS AND OTHER HAZARDS THAT MAY AFFECT THE PROPERTY. Signature of Transferor(s) Date Signature of Transferor(s) Date Agent(s) Date Agent(s) Date Check only one of the following: Transferor(s)and their agent(s)represent that the information herein is true and correct to the best of their knowledge as of the date signed by the transferor(s)and agent(s). ✓ Transferor(s)and their agent(s)acknowledge that they have exercised good faith in the selection of a third—party report provider as required in Civil Code Section 1103.7,and that the representations made in this Natural Hazard Disclosure Statement are based upon information provided by the independent third—party disclosure provider as a substituted disclosure pursuant to Civil Code Section 1103.4.Neither transferor(s)nor their agent(s)(1)has independently verified the information contained in this statement and report or(2)is personally aware of any errors or inaccuracies in the information contained on the statement.This statement was prepared by the provider below: Third-Party DISCLOSURE SOURCE` Date 11/2/2005 DisclosureProvider(s) 1�..„ Al 1-1-1 Transferee represents that he or she has read and understands this document.Pursuant to Civil Code Section 1103.8,the representations made in this Natural Hazard Disclosure Statement do not constitute all of the transferor's or agent's disclosure obligations in this transaction. Signature of Transferee(s) Date Signature of Transferee(s) Date ACKNOWLEDGEMENT FOR RECEIPT OF ADDITIONAL DISCLOSURES a Escrow No: APN 681 070 016 y This acknowledgement applies to the following property: VACANT, PALM SPRINGS, CA 92264 APN: 681-070-016 0 n TOXIC MOLD: THE TRANSFEROR AND HIS OR HER AGENT(S)HAVE PROVIDED THE PROSPECTIVE TRANSFEREES INFORMATION ABOUT TOXIC MOLD(Pursuant to Califouia R Civil Code§1102 6) a x } COMMERCIAL/INDUSTRIAL ZONING: c THE TRANSFEROR AND HIS OR HER AGENT(S) HAVE PROVIDED INFORMATION REQUIRED TO ADVISE THE PROSPECTIVE TRANSFEREE(S) IF THE PROPERTY IS AFFECTED BY OR ZONED TO ALLOW AN INDUSTRIAL USE DESCRIBED IN SECTION 73IA OF THE Code OF Civil Procedure(CALIFORNIA CIVIL ► CODE§1102.17). a n MILITARY ORDNANCE: p THE TRANSFEROR AND HIS OR HER AGENT(S) HAVE PROVIDED INFORMATION REQUIRED TO ADVISE THE PROSPECTIVE TRANSFEREES) OF THE 0 PROPERTY'S PROXIMITY TO ANY FORMERLY USED FEDERAL OR STATE MILITARY ORDNANCE LOCATION (PURSUANT TO CALIFORNIA CIVIL CODE § } 1102.15). 'I C } MEGAN'S LAW: 9 THE TRANSFEROR AND HIS OR HER AGENT(S) HAVE PROVIDED INFORMATION-REQUIRED TO ADVISE THE PROSPECTIVE TRANSFEREES OF THE } PROCESSES AVAILABLE FOR THE PUBLIC TO OBTAIN INFORMATION-REGARDING PERSONS WHO ARE REQUIRED TO REGISTER WITH THE DEPARTMENT OF JUSTICE RESULTING FROM A CONVICTION FOR ASEXUALLY BASED OFFENSE (PURSUANT TO CALIFORNIA PENAL CODE SECTION 2904 ET SEQ). r a AIRPORT INFLUENCE: z THE TRANSFEROR AND HIS OR HER AGENT(S) HAVE PROVIDED INFORMATION REQUIRED TO ADVISE THE PROSPECTIVE TRANSFEREE(S) IF THE C PROPERTY IS AFFECTED BY AN AIRPORT INFLUENCE AREA(PURSUANT TO CALIFORNIA CIVIL CODE§1103 4). AIRPORT PROXIMITY: 1 THE TRANSFEROR AND HIS OR HER AGENTS) HAVE PROVIDED INFORMATION REQUIRED TO ADVISE THE PROSPECTIVE TRANSFEREE(S) OF THE A PROPERTY'S PROXIMITY TO ANY AREA WITH AIRCRAFT LANDING FACILITIES,(A SPECIFIED INDUSTRIAL USE)THAT IS ASSIGNED A CURRENT LOCATION IDENTIFIER BY THE FEDERAL AVIATION ADMINISTRATION (PURSUANT TO CALIFORNIA CIVIL CODE§1102 17) !� a x NATURALLY OCCURRING ASBESTOS. y THE TRANSFEROR AND HIS OR HER AGENT(S)HAVE PROVIDED INFORMATION TO ADVISE THE PROSPECTIVE TRANSFEREES IF THE PROPERTY IS } LOCATED IN A POSSIBLE NATURALLY OCCURRING ASBESTOS AREA ACCORDING TO MAPS FROM THE CALIFORNIA DEPARTMENT OF CONSERVATION, A DIVISION OF MINES AND GEOLOGY a RED-LEGGED FROG AND CALIFORNIA TIGER SALAMANDER HABITAT SENSITIVITY AREA THE TRANSFEROR AND HIS OR HER AGENT(S)HAVE PROVIDED INFORMATION TO ADVISE THE PROSPECTIVE TRANSFEREES IF THE PROPERTY IS I! LOCATED IN A RED-LEGGED FROG AND CALIFORNIA TIGER SALAMANDER HABITAT SENSITIVITY AREA ACCORDING TO MAPS FROM THE CALIFORNIA a i NATURAL DIVERSITY DATABASE OF THE CALIFORNIA DEFT.OF FISH AND GAME,AND CRITICAL HABITAT COVERAGE MAPS FROM THE U S FISH AND -}I WILDLIFE SERVICE. C a n RADON: � THE TRANSFEROR AND HIS OR HER AGENT(S)HAVE PROVIDED INFORMATION TO ADVISE THE PROSPECTIVE TRANSFEREES IF THE PROPERTY IS a LOCATED IN A HIGH POTENTIAL RADON AREA AND/OR COUNTY POTENTIAL LEVEL FOR RADON ACCORDING TO RADON ZONE MAPS FROM THE � CALIFORNIA DEPARTMENT OF CONSERVATION,DIVISION OF MINES AND GEOLOGY AND/OR THE U.S.ENVIRONMENTAL PROTECTION AGENCY IN 8 CONJUNCTION WITH THE U.S.GEOLOGICAL SURVEY. a z } C C A • } a n w A 2 } C C 0 n a • O x H C ■ n BUYER(S) ACKNOWLEDGE RECEIPT OF THE INFORMATION REFERENCED ABOVE (INCLUDED IN THE ATTACHED REPORT) FOR THE ABOVE I ESCRIBED PROPERTY o n • 'a z e er D7e Buyer ate � F•i • } a n ei a e u et vatz • zx } y T Signature of Seller's Agent Signature of Buyer's Agent � • a CUDISCLOSURE SOURCE A FIDELITY NATIONAL FINANCIAL COMPANY Natural Hazard Disclosure Report Commercial/Industrial & Vacant Land Sales Customer Support: 800.880.9123 Escrow Number: APN 681 070 016 Order Number: 110105-00354 Dated as of: 11/2/2005 12:55:22 PM Deliver To Bonnie Bernard THE INFORMATION CONTAINED IN THIS REPORT IS Chicago Title INTENDED FOR THE EXCLUSIVE BENEFIT AND USE OF THE 78-000 Fred Waring Drive,Ste. 103 RECIPIENT(S).NO PERSON OTHER THAN THE RECIPIENT(S) Palm Desert,92211 CA SHOULD RELYUPON, REFER TO, OR USE THIS REPORT, OR ANY INFORMATIONCONTAINED WITHIN THIS REPORT, FOR ANY PURPOSE. THE RECIPIENT(S) SHOULD CAREFULLY READ THE EXPLANATION OFSERVICES, AND, THE Recipient CONDITIONS AND STIPULATIONSCONTAINED IN THIS PALM CANYON ASSOCIATES REPORT. Subject Property VACANT PALM SPRINGS,92264 CA NO RECIPIENT MAY RELY ON THIS REPORT UNLESS FULL PAYMENT FOR IT IS MADE. INFORMATION Natural Hazard Reference Map(s) Maps 1 & 2 Form — Natural Hazard Disclosure Statement Attachment SECTION 1: NATURAL HAZARD SUMMARY A Special Flood Hazard Area (Any Type Zone "A" or "V") 1 An Area of Potential Flooding (Government Code Section 8589.4) 1 Wildland Area Forest Fire Risks and Hazards (Public Resources Code Section 4136) 2 Very High Fire Hazard Severity Zone (Government Code Section 51183.5) 2 Earthquake Fault Zone (Public Resources Code Section 2621.9) 3 Seismic Hazard Zone (Public Resources Code Section 2694) 3 SECTION II: SUPPLEMENTAL DISCLOSURES Important Expanded Natural Hazard Information SECTION III: Explanation of Services, Conditions and Stipulations - Read Carefully SECTION I: Natural Hazard Summary Subject Property: VACANT, PALM SPRINGS, CA 92264 APN: 681-070-016 SPECIAL FLOOD HAZARD AREA DETERMINATION BACKGROUND INFORMATION /DISCUSSION: Pursuant to federal law,The Federal Emergency Management Agency(FEMA)is required to identify and designate areas that are subject to flooding as part of the National Flood Insurance Program.If a property is located in a special flood hazard area,the cost and availability of flood insurance may be affected.Property not located in a Special Flood Hazard Area is not relieved from the possibility of sustaining flood damage. Sources of data:Government agencies and/or their appointed designate(s) Title 42 United States Code Section 4101 FINDINGS: Based on a review of flood insurance map(s)published by the Director of the Federal Emergency Management Agency,the Company reports IS located in a Special Flood Hazard Area. IS NOT located in a Special Flood Hazard Area Do not know/information not available ADDITIONAL INFORMATION: an area outside of the 100 year and 500 year flood zones. DAM INUNDATION / AREA OF POTENTIAL FLOODING DETERMINATION BACKGROUND INFORMATION/ DISCUSSION: By this act,the California State Legislature intended to establish procedures for the emergency evacuation and control of populated area(s) near/below dams Pursuant to Government Code Section 8589.4,The State of California Office of Emergency Services is required to review, approve and maintain copies of the maps that have been prepared and submitted to them by local governmental organizations,utilities or other owners of any dam in the state.The maps delineate areas of potential mundanon and flooding that could result from a sudden,partial or total dam failure.The actual risk of dam failure is not defined by the map(s).This legislation also requires,appropriate public safety agencies of any city, county,the territory of which is located in such an area,to adopt/implement adequate emergency procedures for the evacuation and control of populated areas below sucb dams. Source(s)of data:Government agencies and/or their appointed desiguate(s).Government Code Section 8589.4 Et Seq. FINDINGS: Based on a review of the official map(s),available through The State of California Office of Emergency Services,the Company reports: IS located in a Dam Inundation Zone. IS NOT located in a Dam Inundation Zone Do not know/information not available 11/2/2005 110105-00354 l SECTION I: Natural Hazard Summary (continued) Subject Property: VACANT, PALM SPRINGS, CA 92264 APN: 681-070-016 VERY HIGH FIRE SEVERITY ZONE DETERMINATION BACKGROUND INFORMATION/ DISCUSSION: The California Legislature has declared that space and structure defensibility is essential to diligent fire prevention.Further,the Director of Forestry and Fire Prevention has identified areas in the state as Very High Fire Hazard Severity Zones based on consistent statewide criteria,and based on the seventy of fire hazard that is expected to prevail in those areas Determining information includes,but is not limited to:Fuel loading, terrain(slope),fine weather conditions and other relevant factors. According to the pertinent codes,local fire districts have created Very High Fire Severity Zone maps covering theirjurisdictions.However the officially released maps compiled by the state do not include all of these local district maps.Where available,DisclosmeSource®has obtained these local jurisdiction maps and added them to this search- Source(s)of data:Government agencies or their appointed desiguate(s) California Government Code Section 51178 and 51179 FINDINGS: Based on a review of the official map(s)issued by the Director of Forestry and Fire Protection for the State of California,the Company reports: r IS located in a Very High Fire Hazard Severity Zone. V IS NOT located in a Very High Fire Hazard Severity Zone STATE FIRE RESPONSIBILITY AREA/ WILDLAND AREA THAT MAY CONTAIN SUBSTANTIAL FOREST FIRE RISKS AND HAZARDS DETERMINATION BACKGROUND INFORMATION/ DISCUSSION: The State of California Department of Forestry and Fire Prevention designates Areas of State Fire Responsibility.This means The California Department of Forestry bears the primary financial responsibility for the prevention and/or suppression of fires in these areas.A Seller of real property located within a State Fire Responsibility Area must disclose the fact that there may be a forest fire risk and hazard on the property,and the fact that the property owner may be subject to the imposition of fire mitigation measures as set forth in Public Resources Code Section 4291. However the degree of bazard is not indicated within the official State Fire Responsibility Area maps.It may range from Low to Very High. Source(s)of data:California Public Resources Code Section 4125 FINDINGS: Based on a review of the official map(s)issued by the California Department of Forestry and Fire Protection,the Company reports: IS located in a State Fire Responsibility Area. --N(-IS NOT located in a State Fire Responsibility Area. 11/2/2005 110105-00354 2 SECTION I: Natural Hazard Summary (continued) Subject Property: VACANT, PALM SPRINGS, CA 92264 APN: 681-070-016 ALQUIST-PRIOLO EARTHQUAKE FAULT ZONE DETERMINATION BACKGROUND INFORMATION/ DISCUSSION: Earthquake Fault Zone maps are delineated and compiled by the California State Geologist pursuant to the Alquist-Priolo Earthquake Fault Zoning Act.During an earthquake,structures located directly over fault zones(surface fault traces)could sustain damage as a result of a seismic event resulting from ground fault rupture(surface cracking).For the purposes of this report,an Earthquake Fault Zone is generally defined as an area approximately 1/4 mile in total width(1,320 feet)located on either side of a known active or potentially active earthquake fault. An"active"fault as defined by the State of California,Department of Conservation,Division of Mines and Geology is an earthquake fault that has produced ground surface displacement(ground surface rupture)within the last eleven thousand years.A`potentially active"fault is defined by the State of California,Department of Conservation,Division of Mines and Geology as a fault that has produced ground surface displacement (ground surface rupture)within the last 1.5 million years. Source(s)of data:State of California Department of Conservation Division of Mines and Geology.California Public Resources Code Section 2621 ET SEQ FINDINGS: Based on a review of the official Earthquake Fault Zone Map(s),issued by the California State Geologist the Company reports: IS located in an Alquist-Priolo Fault Zone. _�4_IS NOT located in an Alquist-Priolo Fault Zone. SEISMIC HAZARD ZONE DETERMINATION BACKGROUND INFORMATION /DISCUSSION: The intent of the Seismic Hazards Mapping Act of 1990 is to provide for a statewide seismic hazard mapping and technical advisory program to assist trues and counties in fulfilling their responsibilities for protecting the public health and safety from the effects of strong ground shaking, liquefaction(failure of water-saturated soil),landslides and other seismic hazards caused by earthquakes. Under this act,The California Department of Conservation is mandated to identify and map the state's most prominent earthquake hazards. Information produced by these maps is utilized(in part)by cities and counties to regulate future development.Development/Construction permits may be withheld until adequate geologic or soils investigations are conducted for specific sites,and mitigation measures are incorporated into development plans. Source(s)of data:California Public Resources Code Section 2694 FINDINGS: Based on a review of the official map(s)issued by the State of California,Department of Conservation,Division of Mines and Geology,the Company reports: Yes-Landslide Hazard Zone No-Landslide Hazard Zone Map not released by state Yes-Liquefaction Hazard Zone No-Liquefaction Hazard Zone Map not released by state END OF SECTION 1 11/2/2005 110105-00354 3 SECTION II: Expanded Disclosures Subject Property: VACANT PALM SPRINGS, CA 92264 APN:681-070-016 NOTICE REGARDING EXPANDED NATURAL HAZARDS DISCLOSURES DisclosureSomceo is providing information on locally identified natural hazards set forth below as an additional service because their disclosure to purchasers is either required by ordinance or the information is readily available.The purpose of this document is to disclose whether the Subject Property lies within any of the hazard areas described below DisclosureSource has obtained all maps that are both official and publicly available from city,county,slate and federal sources which supplement and complete the natural hazard information required by the California Civil Code 1103. The foregoing statement should be considered a part of the Explanation of Services,Limitations&Disclaimers of this DisclosureSomce Report and Those Limitations and Disclaimers apply to this Statement.Please refer to them for further information. EXPANDED FLOOD HAZARD DISCLOSURE BACKGROUND INFORMATION / DISCUSSION: Supplemental flood zones include information not covered by Special Flood Hazard Areas as designated by the Federal Emergency Management Agency nor by Dam Inundation zones as reported by the California State Office of Emergency Services.These can include tsunamis, seiches(inland lake tsunamis),runoff hazards,historical flood data and additional dike fAme hazards. FINDINGS: Based on a review of the available maps,the subject property: IS located in a supplemental Flood Hazard Zone. IS NOT located in a supplemental Flood Hazard Zone. ADDITIONAL INFORMATION: None. Date:11/2/2005 Repod*:110105-00354 Page: 4 SECTION II: Expanded Disclosures (continued) Subject Property: VACANT PALM SPRINGS, CA 92264 APN:681-070-016 NOTICE REGARDING EXPANDED NATURAL HAZARDS DISCLOSURES DisclosureSourca is providing information on locally identified natural hazards set forth below as an additional service because their disclosure to purchasers is either required by ordinance or the information is readily available.The purpose of this document is to disclose whether the Subject Property lies within any of the hazard areas described below. DisclosureSouree has obtained all maps that are both official and publicly available from city,county,state acid federal sources which supplement and complete the natural hazard information required by the California Civil Code 1103. The foregoing statement should be considered a part of the Explanation of Services,Limitations&Disclaimers of this DisclosmeSource Report and Those Limitations and Disclaimers apply to this Statement.Please refer to them for further information. SUPPLEMENTAL FIRE HAZARD DISCLOSURE BACKGROUND INFORMATION: Local agencies may,at their discretion,include or exclude certain areas from the requirements of California Government Code Section 51182(imposition of fire prevention measures on property owners),following a finding supported by substantial evidence in the record that the requirements of Section 51182 either are,or are not necessary for effective fne protection within the area.Any additions to these maps that we have been able to identify and substantiate are included in this search. There are other substantial fire hazards that are not subject to Section 51182 such as brush fires.We have included these maps in this search. The State required fire hazard disclosures only indicate areas of extremely high risk Also included in this search are known areas of moderate to high fire risk FINDINGS: Based on a review of the available maps,the subject property: IS located in a supplemental Fire Hazard Zone. IS NOT located in a supplemental Fire Hazard Zone. ADDITIONAL INFORMATION: None. Date:11/2/2005 Report#:110105-00354 Page: 5 SECTION II: Expanded Disclosures (continued) Subject Property: VACANT PALM SPRINGS, CA 92264 APN:681-070-016 NOTICE REGARDING EXPANDED NATURAL HAZARDS DISCLOSURES DisclosunSourcev is providing information on locally identified natural hazards set forth below as an additional service because their disclosure to purchasers is either required by ordinance or the information is readily available The purpose of this document is to disclose whether the Subject Property lies within any of the hazard areas described below. DisclosmeSource has obtained all maps that are both official and publicly available from city,county,state and federal sources which supplement and complete the natural hazard information required by the California Civil Code 1103. The foregoing statement should be considered a part of the Explanation of Services,Limitations&Disclaimers of this DisclosureSource Report and Those Limitations and Disclaimers apply to this Statement Please refer to them for further information. EXPANDED GEOLOGIC HAZARD DISCLOSURE BACKGROUND INFORMATION: 'the California Division of Mines and Geology(DMG)has not completed the project assigned it by Section 2696 of the California Public Resources Code to identify areas of potential seismic hazard within the State of California.The DMG and the USGS have performed many valuable studies that supplement the Section 2696 maps and fill in many missing areas.These maps are included in this search. Also included in this search are maps that indicate many hazards that may or may not be seismically related,including,but not limited to, landslides,debris flows,mudslides,coastal cliff instability,volcanic hazards and avalanches. Many cities and counties require geologic studies before any significant construction if the subject property is in or near a geologic hazard known to them.We have included all official and publicly available maps indicating geologic hazards known by these jurisdictions FINDINGS: Based on a review of the available maps,the subject property: IS located in a supplemental Geologic Hazard Zone, _1( IS NOT located in a supplemental Geologic Hazard Zone. ADDITIONAL INFORMATION: None. Date:11/2/2005 Report#r. 110105-00354 Page: 6 SECTION II: Expanded Disclosures (continued) Subject Property: VACANT PALM SPRINGS, CA 92264 APN:681-070-016 NOTICE REGARDING EXPANDED NATURAL HAZARDS DISCLOSURES DisclosureSourcov is providing information on locally identified natural hazards set forth below as an additional service because their disclosure to purchasers is either required by ordinance or the information is readily available.The purpose of this document is to disclose whether the Subject Property lies within any of the hazard areas described below. DisclosareSomce has obtained all maps that are both official and publicly available from city,county,state and federal sources which supplement and complete the natural hazard information required by the California Civil Code 1103. The foregoing statement should be considered a part of die Explanation of Services,Limitations&Disclaimers of this DisclosureSource Report and Those Limitations and Disclaimers apply to this Statement Please refer to them for further information. EXPANDED EARTHQUAKE FAULT HAZARD DISCLOSURE BACKGROUND INFORMATION: Many local jurisdictions have different or higher standards than the state for the identification of active earthquake faults.These jurisdictions have created their own maps which indicate the active faults according these standards.Some jurisdictions also recommend or require the disclosure of potentially active faults.We have included both types of maps in our search. Many cities and counties require geologic studies before any significant construction if the subject property is in or near an earthquake fault zone known to them.We have included all official and publicly available maps indicating earthquake faults known by these jurisdictions. FINDINGS: Based on a review of the available maps,the subject property: IS located in a supplemental Fault Hazard Zone. IS NOT located in a supplemental Fault Hazard Zone. ADDITIONAL INFORMATION: None. Date:11/2/2005 Report#:110105-00354 Page: 7 SECTION III DISCLOSURESOURCE® NATURAL HAZARD REPORT COMMERCIAL PROPERTY/VACANT LAND SALES EXPLANATION OF SERVICES This DisclosureSource report has been prepared by Disclosure Source,hereinafter the Company,for the sole and only purpose of assisting the Seller of the Property identified in the DisclosureSource Report Summary and his or her Agents to comply with portions of the Disclosure Statutes listed in the Conditions and Stipulations.The portions of the Disclosure Statutes that are the subject of this DisclosureSource Report require that the Seller or his or her Agents disclose to a Purchaser or proposed purchaser that a Local Agency has indicated that the Property is within a Property Location Zone identified in the DisclosureSource Report Summary The Disclosure Information contained in the DisclosureSource Report Summary is derived solely from the Property Location Records as defined in the Conditions and Stipulations.The Company has not made any investigation or analysis of the data supporting the information contained in the Property Location Records.while it is possible that the Company may have information that is not disclosed herein concerning the Property the Seller,Purchaser or proposed purchaser and their respective Agents acknowledge and agree that the Company is under no duty or obligation to disclose such information.This DisclosureSource Report is not intended to provide or represent either explicitly or by implication information regarding any matters not specifically disclosed by the Property Location Records. This Report and the Disclosure Information may not be used for any purpose other than as stated above or by any other person or entity, including but not limited to,insurance companies,lenders,or governmental agencies. This DisclosureSource Report is issued as of the Property Location Disclosure Date specified in the DisclosureSource Report Summary. The Company has no responsibility to the Seller,Purchaser or proposed purchaser,and their respective Agents for any inaccuracy of any of the Disclosure Information as a result of any act or event that occurs subsequent to the Property Location Disclosure Date. The Seller,Purchaser or proposed purchaser and their respective Agents understand and acknowledge that the Company does not war-rani, guarantee or insure against error,inaccuracy or omission of the Disclosure Information.By relying on the Disclosure Information the Seller, Purchaser or proposed purchaser and their respective Agents understand,agree and acknowledge that the Company has specifically disclaimed any liability for Loss or Damage arising under this DisclosureSource Report except as provided by the Loss or Damage provisions of the Conditions and Stipulations. The Company has not performed a physical inspection of the Property and shall have no liability for any matter that would have been disclosed by inspection including but not limited to;any physical defect,environmental,architectural,structural,mechanical,engineering,design defects relating to the Property or any structure thereon,settlement,drainage,subsidence or soil conditions.This DisclosureSource Report is not intended to provide or represent either explicitly or by implication information concerning the condition,character,compliance or noncompliance with laws,ordinances or governmental regulations effecting the Property or any structure located thereon.The Company has not con-ducted any test or research relating to the existence of hazardous or toxic materials or contamination on the Property.The Purchaser or pro-posed purchaser may(at their expense)desire to retain the services of an engineer,architect,environmental consultant and/or other expert concerning the Property and the structures located thereon as to matters other than the specific Disclosure Information contained in the Mandatory Disclosure DisclosureSource Report Summary. The Seller,Purchaser or proposed purchaser further understaud,agree and acknowledge that this DisclosureSource Report is not intended to provide property damage or personal injury insurance and that the liability of the Company for any error,inaccuracy or omission of the Disclosure Information does not include loss or damage resulting from earthquakes,fees,flooding,or other physical hazards that could affect the Property or its occupants.The Seller and Purchaser understand and acknowledge that various forms of properly damage and personal injury insurance may be available from private and public sources. The liability of the Company under this DisclosureSource Report may not be orally or otherwise enlarged by any employee of the Company except as provided in the Conditions and Stipulations Date: 11/2/2005 Report#:110105-00354 SECTION III (continued) CONDITIONS AND STIPULATIONS: 1.Definition of Terms: Agents. Licensed real estate agents and brokers who represent the Seller and/or Purchaser Claimant. The Seller and/or the Purchaser or proposed purchaser and/or then respective agents who received this Mandatory Disclosure Report and are claiming Loss or Damage ansing from any error,inaccuracy or omission of the Disclosure Information. Disclosure Information' The answers set forth in the DrsclosureSourcex Report Summary as to each specific question regarding the location of the Property in relation to the Property Location Zones is disclosed by the Property Location Records as of the Property Location Disclosure Date Disclosure Statutes California Government Code section 51183 5 California Public Resources Code section 2621.9 Califormi Government Code section 8589.3 California Government Code section 8589 4 California Public Resources Code section 2694 California Public Resources Code section 4136 California Civil Cade section 1102 15 California Civil Code section 1102 17 California Penal Code section 290 4 Local Agency' The Federal,State,City and/or County,Department,District,Agency or local junsdiction referenced in the laws referred to in the Disclosure Statutes Locally Identified Natural Hazard Information Natural hazard information obtained from the County General Plan or from Local Agencies in the city/county where the Property is situated Lass or Damage: The least of,(i)actual out-of-pocket loss or(ii)the difference between the value of the Property located as disclosed in the DisclosureSource Report Summary, and the value of the Property being located otherwise as disclosed in the Land Location Records as of the Property Location Disclosure Date or(in)the fair market value of the Property as of the Property Location Disclosure Date or(iv)Five Hundred Thousand Dollars(S 500,000.00). DisclosureSource Report Summary The DisclosureSource Report Summary attached to this DisclosureSource Report, Property: The land identified in the DisclosureSource Report Summary The term"Property"is limited to the land identified in the DisclosureSource Report Summary excluding any appurtenant interests beyond the boundary of the land including,but not limited to,any common area interests,or any rights,title,interests,estate or easement in abutting streets,alleys,or rights of way,or water,watercourses,or waterways. Property Location Disclosure Date: Date specified in the DisclosureSource Report Summary. Property Location Records' As of the Property Location Disclosure Date,the records,data or maps specifically identified in the DisclosureSource Report Summary for each of the Property Location Zones Property Location Zones. The zones,areas or districts identified in the DisclosureSource Report Summary Purchaser or proposed purchaser: The party who acquires or is interested in acquiring title to the Property by purchase directly from the Seller Seller. The owner of the Property on the Property Location Drsclosme Date 2.No Third Party Beneficiaries The Disclosure Information contained in the Mandatory Disclosure Report Summary may not be relied upon by any person or entity other than the Seller, Purchaser or proposed purchaser and their respective Agents. 3.Notice of Claim All claims and notices shall be addressed to. Disclosure Source Claims Department 1521 North Cooper Street,Suite 400 Arlington,Texas 76011 Any claim must be given promptly in writing when knowledge is acgmred by any Claimant of any information which is contrary to the Disclosure Information contained in the DisclosureSource Report Summary.If a written claim notice is not given promptly to the Company,then,all liability ofthe Company shall terminate with regard to the matter or matters for which a prompt clam notice is requned but only to the extent that the failure to give prompt written notice has prejudiced the Company 4.No duty to defend and/or pay any attorneys' fees,costs and expenses In the event of any error,omission or inaccuracy in the Disclosure Information,the Company shall have,notwithstanding California Civil Code Section 2778 no duty to defend and/or pay any attorneys'fees,costs and expenses incurred by a Claimant Date: 11/2/2005 Report#: 110105-00354 SECTION III (continued) CONDITIONS AND STIPULATIONS: 5.Proof of Loss or Damage In addition to and after the notices required under Section 3 of these Conditions and Stipulations have been provided to the Company,a proof of Loss or Damage signed and sworn to by the Claimant shall be famished to the Company within ninety(90)days after the Claimant shall ascertain die facts giving rise to the Loss or Damage The proof of Loss or Damage shall describe matters covered by this DisclosureSource,Report,which constitutes the basis for Loss or Damage and shall state the basis of calculating the amount of the Loss or Damage.If the Company is prejudiced by the failure of the Claimant to provide the required proof of Loss or Damage the obligations of Disclosure Source to the Claimant under this DisclosureSource Report shall terminate 6.Aggregate Total Liability The total aggregate liability of the Company under this DisclosureSource Report as to all Claimants,shall not exceed the lesser of. (a)Actual out-of-pocket loss or, (b)The difference between the value of the Property located as disclosed in the DisclosureSource Report Summary and the value of the Property being located otherwise as disclosed in Property Location Records as of the Property Location Disclosure Date or, (c)The fair market value of the Property as of the Property Location Disclosure Date or, (d)Five Hundred Thousand Dollars(S 500,000). All payments for Loss or Damages made to any Claimant shall reduce the amount of liability for Loss or Damage under this DisclosureSource Report pro tanto 7.Voluntarily Assumed Liability The Company shall not be liable for Loss or Damage to any Claimant for liability voluntarily assumed by the Claimant in settling any claim or suit without the prior written consent of the Company 8.Payment of Loss When liability and the extent of Loss or Damage has been definitely fixed in accordance with Conditions and Stipulations,the Loss or Damage shall be payable within(30)thirty days thereafter 9.Subrogation Upon Payment or Settlement Whenever the Company shall have settled and paid a claim under this DisclosureSorce Report,all right of subrogation shall vest in the Company unaffected by any act of the Claimant. The Company shall be subrogated to and be entitled to all rights and remedies which the Claimant would have had against any person,policy of insurance or property in respect to the claim had this DisclosureSource Report not been issued.If requested by the Company,the Claimant shall transfer to the Company all rights and remedies against any person,policy of insurance or property necessary in order to perfect this right of subrogation The Claimant shall permit the Company to sue, compromise or settle in the in the name of the Claimant and to use the time of the Claimant in any transaction or litigation involving these rights or remedies If payment on account of a claim does not fully cover the Loss or Damage of the Claimant.the Company shall be subrogmed to all rights and remedies of the Claimant in the proportion which the payment made by the Company bears to the whole amount of the Loss or Damage. 10.Arbitration Unless prohibited by applicable law,either the Company or the Claimant may demand arbitration pursuant to the Commercial Arbitration Rules of the,American Arbitration Association Arbitrable matters may include,but are not limited to,any controversy or claim between the Company and the Claimant arising out of or relating to this DisclosureSource Report,any service of the Company in connection with the issuance of this DisclosureSource Report or other obligation The Rules in effect at the Property Location Disclosure Dale shall be binding upon the panes.The law of the State of Texas shall apply to arbitration under the Commercial Arbitration Rules A copy of the Rules may be obtained from the Company upon Request 11.Liability Limited to This DisclosureSource Report;DisclosureSource Report is Entire Contract (a)This DisclosureSource Report is the entire contact between the Seller,Purchaser or proposed purchaser,their respective Agents and the Company.In interpreting any provision of this DisclosureSource Report,this DisclosureSource Report shall be construed as a whole All prior or contemporaneous oral agreements, understandings,representations and statements are merged herein and shall be of no further force or effect (b)Any modification,amendment or alteration of the terms of this DisclosureSource Report shall be effective only if made by a written endorsement attached to this DisclosureSource Report and signed by a President Vice President,Secretary,AssistantSecretary,validating officer or other authorized signatory ofthe Company. (c)Each endorsement to this DisclosureSource Report is made a pan of this DisclosureSource Report and is subject to all of the terms and provisions hereof. Unless otherwise expressly set forth in the endorsement,it shall not(i)modify any of the terms and provisions of this DisclosureSource Report or other endorsement (it)Extend the Property Location Disclosure Date or the date of other endorsements. (d)Any claim of Loss or Damage whether or not based on negligence,or any action or proceeding asserting such claim,shall be restricted to this DisclosureSource Report 12.Severability In the evens any provision of this DisclosmeSomce Report is held invalid or unenforceable under applicable law,this DisclosureSource Report shall be deemed MAID include that provision and all other provisions shall remain in full force and effect 13.Notices,Where Sent All notices required to be given the Company and any statement in writing required to be famished the Company shall include a copy of this DisclosureSource Report and shall be addressed to Disclosure Source 1521 North Cooper Street,Suite 400 Arlington,Texas 76011 Date: 11/2/2005 Report#:110105-00354 Supplemental Disclosures Subject Property: VACANT, PALM SPRINGS, CA 92264 APN: 681-070-016 TOXIC MOLD DISCLOSURE (PURSUANT TO THE"TOXIC MOLD PROTECTION ACT OF 2001) BACKGROUND INFORMATION I DISCUSSION: California law(Civil Code Section 1102.6 Et Seq.)requires any seller,transferor,or lessor of residential,commercial or industrial property, or a public entity that owns,leases,or operates a building provide a written disclosure to prospective purchasers,prospective tenants,renters, or occupants if the seller,transferor,lessor or public entity has knowledge of mold conditions or in specified instances has reasonable cause to believe,that mold(visible or hidden)that exceeds permissible exposure limits is present that affects the unit or building. The State Department of Health Services is designated as the lead agency for identifying; adopting,and determining permissible exposure limits to mold in indoor environments,mold identification and remediation efforts. Publications providing information on toxic mold: • General Information Molds, Toxic Mold, and Indoor • Health Effects of Toxin-Producing Molds In California Air Quality • Stachybotrys Chartarum (atra) — A mold that may be • Biological Pollutants in Your Home found in water-damaged homes • Mold in My Home: What Do I Do? • Fungi-and Indoor Air Quality Available to the public on the Inteme[ or at no cost from: California Department of Health Services Environmental Health Investigation Branch 1515 Clay St,Suite 1700 Telephone:(5I0)622 4500 Oakland,CA 94612 Web:wmv dhs-iaq ca.gov; wu vial-iaq org MOLD; oivwdhscn.gov/ehib COMMERCIAL / INDUSTRIAL ZONING DISCLOSURE BACKGROUND INFORMATION I DISCUSSION: Pursuant to California Civil Code Section§1102,17,the seller of residential real property subject to this article who has actual knowledge that the property is adjacent to,or zoned to allow,an industrial use described in Section 731a of the Code of Civil Procedure, or affected by a nuisance created by such a use,shall give written notice of that knowledge as soon as practicable before transfer of title. Additional Source Information:California Code of Civil Procedure Section§731a. "Whenever any city,city and county,or county shall have established zones or districts under authority of law wherein certain manufacturing or commercial or airport uses are expressly permitted,except in an action to abate a public nuisance brought in the time of the people of the State of California,no person or persons,firm or corporation shall be enjoined or restrained by the injunctive process from the reasonable and necessary operation in any such industrial or commercial zone or airport of any use expressly permitted therein,nor shall such use be deemed a nuisance without evidence of the employment of unnecessary and injurious methods of operation. Nothing in this act shall be deemed to apply to the regulation and working hours of canneries,fertilizing plants,refineries and other similar establishments whose operation may produce offensive odors." Findings: Based on the current tax assessment roles,as of the date of this report,the company reports the following information affecting this property: The Property IS Located Within One Mile of A Property Zoned For Commercial Or Industrial Use. The Property IS NOT Located Within One Mile of A Property Zoned For Commercial Or Industrial Use. 11/2/2005 110105-00354 Supplemental Disclosures Subject Property: VACANT, PALM SPRINGS, CA 92264 APN: 681-070-016 MILITARY ORDNANCE LOCATION DISCLOSURE BACKGROUND INFORMATION /DISCUSSION: California Civil Code Section§1102.15 states"The seller ofresidential real property subject to this article who has actual knowledge of any former federal or state ordnance locations within the neighborhood area shall give written notice of that knowledge as soon as practicable before transfer of title." For purposes of this section,"former federal or state ordnance locations"means an area identified by an agency or instrumentality of the federal or state government as an area once used for military training purposes,which may contain potentially explosive munitions. "Neighborhood area"means within one mile of the residential real property. DisclosureSourcea's liability for any claim,or claims,including but not limited to any claim for breach of contract or negligence,relating to or arising out of DisclosureSource's services shall not exceed,in the aggregate,the amount,if any,by which the purchase price paid for the property by the purchaser exceeds the market value of the property on the Preparation Date of this report. DisclosureSource shall not be liable for any incidental or consequential damages suffered by the recipients IMPORTANT NOTE: This Military Ordnance Location disclosure was obtained through the U S.Army Corps of Engineers database of known Formerly Used Defense Sites in the state of California.The information provided herein represents all publicly available information of Formerly Used Defense Sites known to contain hazards. FINDINGS: According to the information available from The U.S.Army Corps of Engineers database of known Formerly Used Defense Sites in the State of California On the preparation date of this report,the Company reports. FORMER FEDERAL/STATE ORDNANCE LOCATIONS WITHIN YOUR COUNTY ARE DESCRIBED AS FOLLOWS: City Site Name USACE District Site Number BANNING BANNING RIFLE RANGE SPL J09CA0234 BLYTHE BLYTHE ARMY AIRFIELD SPL J09CA0245 CADIZ CADIZ LAKE SONIC TAR#10 SPL J09CA0255 CADIZ CADIZ LAKE SONIC TARGET#7 SPL J09CA0261 CADIZ CADIZ LAKE SONIC TARGET#8 SPL J09CA0262 FREDA CAMP COXCOMB SPL J09CA0274 GRANITE CAMP GRANITE SPL J09CA7043 RIVERSIDE CAMP HAAN SPL J09CA0279 RICE CAMP RICE SPL J09CA7186 INDIO CAMP YOUNG(CAMA) SPL J09CA0296 Unknown CORN SPRINGS GAP FILLER ANNEX SM-16 SPL J09CA0308 RIVERSIDE CP ANZA SPL J09CA0267 DESERT CENTER DESERT CENTER DIVISION CAMP SPL J09CA0342 DESERT CENTER DESERT CNTR ARPT SPL J09CA0341 PERRIS GAVILAN PLATEAU MANEUVER AREA SPL J09CA0375 Unknown MARCH AFB-POORMAN GUNNERY RANGE SPL J09CA7400 RIVERSIDE MARCH FIELD SPL J09CA7168 TEMECULA MARCH TVOR ANX SPL J09CA0479 Unknown NAVALORDNANCELAB SPL J09CA1084 PALM SPRNGS PALM SPRINGS ARMY AIR FIELD SPL J09CA0532 GLEN AVON PYRITE CANYON SPL J09CA0198 BLYTHE RICE AIR FIELD SPL J09CA0573 Unknown RICE VALLEY SAND DUNES SPL J09CA0050 SALTON SEA SALTON SEA BOMB TARGET(FBT 15)(#56) SPL J09CA0186 SALTON SEA SALTON SEA BOMB TARGET(FBT 13)(#54) SPL J09CA0184 11/2/2005 110105-00354 Supplemental Disclosures Subject Property VACANT, PALM SPRINGS, CA 92264 APN: 681-070-016 MILITARY ORDNANCE LOCATION DISCLOSURE (continued) City Site Name USACE District Site Number SALTON SEA SALTON SEA BOMB TARGET(FBT 14)(955) SPL J09CA0185 Unknown SHAVERS SUMMIT AIRFIELD SPL J09CA0629 TEMECULA TEMECULA BOMB TARGET#107 SPL J09CA7469 TEMECULA TEMECULA BOMBING RANGE#1 SPL J09CA7451 TEMECULA TEMECULA BOMBING RANGE#2 SPL J09CA7452 THERMAL THERMAL GRD AIR STA BASE SPL J09CA0645 INDIO TORNEY GEN HOSPITAL SPL J09CA0651 RIPLEY WILEY WELLS WATER POINT(CAMA) SPL J09CA0710 11/2/2005 110105-00354 Supplemental Disclosures Subject Property: VACANT, PALM SPRINGS, CA 92264 APN: 681-070-016 REGISTERED SEX OFFENDER DATABASE DISCLOSURE ALSO KNOWN AS "MEGAN'S LAW" BACKGROUND INFORMATION / DISCUSSION: For more than 50 years,California has required sex offenders to register with their local law enforcement agencies.However,information on the whereabouts of these sex offenders was not available to the public until the implementation of the Child Molester Identification Line in July 1995.The information available was further expanded by California's Megan's Law in 1996(Chapter 908,Stats.of 1996) The public may search a database,via the internet at:hup//www meeanslaw ca.gov,by a sex offender's specific time,obtain ZIP Code and city/counTy listings,obtain detailed personal profile information on each registrant,and use the map application to search your neighborhood or anywhere throughout the State to determine the specific location of any of those registrants on whom the law allows the State of California to display a home address Also,the Department of Justice,County Sheriff's Departments,and municipal police departments of cities with a population of more than 200,000 shall make,and other law enforcement agencies may make,information available in the form of a CD-ROM or other electronic media.The CD-ROM is available for public viewing at select law enforcement agency offices. DisclosureSourceo's liability for any claim,or claims,including but not limited to any claim for breach of contract or negligence,relating to or arising out of DisclosmeSomce's services shall not exceed,in the aggregate,the amount,if any,by which the purchase price paid for the property by the purchaser exceeds the market value of the property on the Preparation Date of this report. DisclosureSource shall not be liable for any incidental or consequential damages suffered by the recipients. LAW ENFORCEMENT AGENCIES PROVIDING INFORMATION AVAILABLE FOR PUBLIC VIEWING: Agency: RIVERSIDE COUNTY SHERIFF'S DEPARTMENT Address: 4095 LEMON STREET Phone: (909) 955-2440 Hours of Operation: 8:00 AM TO 5:00 PM, MONDAY TO FRIDAY Estimated Driving Distance: 62.5 Miles For additional information,you may visit the State of California Attorney General Megan's Law Web Page:hup://www.megaxeJaw.cagov/ 11/2/2005 110105-00354 Supplemental Disclosures Subject Property: VACANT, PALM SPRINGS, CA 92264 APN: 681-070-016 AIRPORT INFLUENCE AREA DISCLOSURE BACKGROUND INFORMATION / DISCUSSION: Section 1103.4 of the California Civil Code requires notice if a property is encompassed within an airport influence area. According to Section 11010 of the Business and Professions Code,an airport influence area is defined as"an area in which current or future airport related noise,overflight,safety or airspace protection factors may significantly affect land uses or necessitate restrictions on those uses." Where publicly available at the time of the report,Disclosure Source®has utilized any and all airport influence area maps from county Airport Land Use Commissions(ALUC). Airport influence area maps can be found within a county Airport Land Use Comprehensive Plan,available to the public through most county planning departments. According to airport influence maps available,: The Property IS NOT located in an airport influence area. ✓ The Property IS located in an airport influence area -NOTICE OF AIRPORT IN VICINITY This property is presently located in the vicinity of an airport,within what is known as an airport influence area. For that reason,the property may be subject to some of the annoyances or inconveniences associated with proximity to airport operations (for example:noise, vibration,or odors). Individual sensitivities to those annoyances can vary from person to person. You may wish to consider what airport annoyances,if any,are associated with the property before you complete your purchase and determine whether they are acceptable to you. 11/2/2005 110105-00354 Supplemental Disclosures Subject Property: VACANT, PALM SPRINGS, CA 92264 APN: 681-070-016 AIRPORT PROXIMITY DISCLOSURE BACKGROUND INFORMATION / DISCUSSION: California Civil Cade§1102.17.states"The seller of residential real property subject to tins article who has actual knowledge that the property is affected by or zoned to allow an industrial use described in Section 731a of the Code of Civil procedure shall give written nonce of that knowledge as soon as practicable before transfer of title. Industrial use identified in Section 731a includes but is not limited to airport uses. Aircraft landing facilities disclosed herein consists of those owned by the United States Federal Government(Military aviation),publicly and private owned civil and commercial aviation facilities,except private landing facilities(restricted public access),glider ports,and facilities that have not been assigned a current location identifier by the federal Aviation Administration. DisclosureSources's liability for any claim,or claims,including but not limited to any claim for breach of contract or negligence,relating to or arising out of DisclosureSource's services shall not exceed,in the aggregate,the amount,if any,by which the purchase price paid for the property by the purchaser exceeds the market value of the property on the preparation Date of this report. DisclosureSource shall not be liable for any incidental or consequential damages suffered by the recipients According to information available from the United States Department of Transportation(Bureau of Statistics)the Company reports the following aircraft landing facilities within the estimated distance of the subject property. fD# Airport Name Airport Type Distance PSP PALM SPRINGS INTERNATIONAL AIRPORT COMMERCIAL/CIVILIAN 2.5 Miles For further information regarding any of the public aircraft landing facilities identified within this disclosure,please contact the following agency: Western Pacific Region Airports Division 15000 Aviation Blvd, #312 Hawthorne, CA 90261 (310) 725-3600 11/2/2005 110105-00354 Supplemental Disclosures Subject Property: VACANT, PALM SPRINGS, CA 92264 APN: 681-070-016 RADON DISCLOSURE BACKGROUND INFORMATION / DISCUSSION: Radon gas is a colorless,odorless radioactive gas that is produced by the natural decay of uranium,which is found in nearly all soils. Because radon is a gas,it can seep from the ground into the air in a house through openings in the ground,and its presence increases the risk of lung cancer. DisclosureSource has obtained the following information from a 1999 study published by Lawrence Barkley National Laboratory and Columbia University,with support from the U.S.Department of Energy and the U.S Environmental Protection Agency. Additional information may be found at httn://eetd.lbl.eov/IEP/hieb-radon/USem.btm. The predicted median annual-average of all fifty-eight counties in California is below 2.0 pCi/L(piwCuries per liter of air). If the radon level is greater than 4pCt/L,the Environmental Protection Agency suggests remediation. It is important to note that the median annual-averagejust listed is a prediction,and the actual median is subject to some uncertainty Also,radon concentrations in a county may be highly variable Some homes may have five times as high,or five times as low,a concentration as the median for a county. All areas have some high radon homes. Long-term(up to one year)measurement is generally recommended for the most accurate determmation of radon levels. The U.S.Environmental Protection Agency recommends that all homes be tested for radon More information may be found at the Radon Project web site from the Columbia University Department of Statistics and Lawrence Berkeley National Laboratory at httn:/hvew.v.stat.columbia.edu/radon. This site may assist homeowners in deciding whether they have a serious radon problem and what to do about it. The U S.Environmental Protection Agency and U S.Geological Survey have also produced a map that assigns one of three zone designations based on radon potential to each county According to the U.S.EPA,each zone designation reflects the average short-term radon measurement that can be expected to be measured in a budding without the implementation of radon control methods. This map is not meant to be used to determine whether a particular home should be tested for radon,but is used to natal various government agencies and organizations in focusing their radon program resources. Homes with high levels of radon have been found in all three zones The three zone designations based on radon potential are. Zone I Highest Potential(greater than 4 pCdL) Zone 2 Moderate Potential(from 2 to 4 pC✓L) Zone 3 Low Potential(less than 2 pCi/L) According to the EPA Map of Radon Zones,this county is in Zone 2 11/2/2005 110105-00354 Supplemental Disclosures Subject Property: VACANT, PALM SPRINGS, CA 92264 APN: 681-070-016 HABITAT SENSITIVITY AREA DISCLOSURE: RED-LEGGED FROG BACKGROUND INFORMATION / DISCUSSION: The California Endangered Species Act,Fish and Game Code,section 2051,states that there are certain species offish,wildlife and plants that are in danger of,or threatened with,extinction because their habitats are being threatened,destroyed or adversely modified. According to the U S Fish and Wildlife Service,critical habitat areas of the California red-legged frog include suitable aquatic habitat,or permanent still or slow moving bodies of water such as ponds,back eaters within streams or creeks,marshes,and lagoons. Other critical habitat areas are upland areas within the watershed boundary that are close in proximity to the water's edge,and upland or welland areas that connect suitable aquatic habitats. Habitat areas have been threatened through agriculture,urbanization,mining, overgrazing,recreation,timber harvesting,invasion of non-native plants,impoundments,water diversions,reservoir construction, degraded water quality,and introduced predators and competitors Legislation declares that landowner cooperation is essential for conservation on those lands that have been identified as a habitat for endangered or threatened species. According to Section 2052 1 of the Fish and Game Code,if a person needs to address mitigation measures in relation to a particular impact on a threatened species,then those measures will be roughly proportional to the impact that the person has on those species. The required measures will be capable of successful implementation,and will maintain the person's objectives as much as possible in relation to section codes. For the purposes of this report,"sensitivity areas"will include historical documentation of actual sightings,breeding areas, population locations as well as current and critical habitats. This document is to notify the buyer whether the Subject Property lies within an area known to be important to the conservation of the California Red-Legged Frog,which is listed as a state and/or federally threatened species. Disclosure Source recommends the buyer contact the California Department of Fish&Game to ascertain what considerations might be involved as a result of being in this particular habitat sensitive area. For further information regarding the red-legged frog habitat sensitive area,please contact the Dept.of Fish&Game at 916-322-2493,or at www dfg.ca.gov/whdab. FINDINGS: According to maps in the California Natural Diversity Database of the California Department of Fish and Game,and Critical Habitat Coverage maps from the U.S.Fish and Wildlife Service: The property IS located within a California Red-Legged Frog habitat sensitive area. The property IS NOT located within a California Red-Legged Frog habitat sensitive area. 11/2/2005 110105-00354 Supplemental Disclosures Subject Property: VACANT, PALM SPRINGS, CA 92264 APN: 681-070-016 POSSIBLE NATURALLY OCCURRING ASBESTOS DISCLOSURE BACKGROUND INFORMATION/ DISCUSSION: Asbestos is the common time for a group of silicate minerals that are made of thin,strong fibers It occurs naturally in certain geologic settings in California,most commonly in ultrabasic and ulbamafic rock,including serpentine rock,and along associated faults. Chrysotile is the most common type of asbestos,and is often contained in serpentine rock Serpentine rock is a typically grayish-green to bluish-black color rock that may be shiny in appearance,and is commonly found in the Sierra foothills,the Klamath Mountains,and Coast Ranges. While asbestos formation is more likely in the formations of these rocks,its presence is not certain. Because asbestos is a mineral,asbestos fibers are generally stable in the environment The fibers will not evaporate in the air. Some naturally occurring asbestos can become friable,or crushed into a powder. This may occur when vehicles drive over unpaved roads or driveways that are surfaced with ultrabasic,ultramafic or serpentine rock,when land is graded for building purposes,or at quarrying operations. Weathering and erosion may also naturally release asbestos. Friable asbestos can become suspended in the air,and under these conditions,asbestos fibers represent a significant risk to human health Asbestos is a known carcinogen,and inhalation of asbestos may result in the development of lung cancer DisclosureSource bas obtained geologic maps from the California Department of Conservation,Division of Mines and Geology,which detail areas within the state that contain naturally occurring ultrabasic and uhrnmafic rocks. Those properties whose underlying geologic substructure contains these types of rock,with their higher potential for asbestos content,have a higher chance of asbestos exposure,and thus may be in a potential asbestos hazard area FINDINGS: According to Geologic Maps from the California Department of Conservation,Division of Mines and Geology,that outline areas containing ultrabasic and ultramafic rocks,which may have naturally occurring asbestos The property IS located in a potential asbestos hazard area. The property IS NOT located in a potential asbestos hazard area. 11/2/2005 110105-00354 Supplemental Disclosures Subject Property: VACANT, PALM SPRINGS, CA 92264 APN: 681-070-016 HABITAT SENSITIVITY AREA DISCLOSURE: CALIFORNIA TIGER SALAMANDER BACKGROUND INFORMATION / DISCUSSION: The California Endangered Species Act,Fish and Game Code,section 2051,states that there are certain species of fish,wildlife and plants that are in danger of,or threatened with,extinction because then habitats are being threatened,destroyed or adversely modified. The main provisions of this act generally parallel that of the Federal Endangered Species Act The California Tiger Salamander(Ambystoma califomiense)has been listed by the U S.Fish&Wildlife Service as threatened As per this agency and the California Fish and Game Code section 2067,a`threatened species"is one that is likely to become an endangered species in the foreseeable future in the absence of. special protection and management efforts. " According to the U S Fish and Wildlife Service,critical habitat areas of the California Tiger Salamander include"grasslands and low(under 1500 fool)foothill regions where lowland aquatic sites are available for breeding" They prefer temporary pools or ponds that are similar,such as stock ponds that are allowed to go dry. They are restricted to large vernal pools(wetlands that fill during fall and winter rains),veinal playas and large sag ponds. They also require the burrows of mammals where they can enter a dormant state The decline of this salamander population is primarily due to the"loss and fragmentation of habitat from human activities and the encroachment of nonnative predators" Legislation declares that landowner cooperation is essential for conservation on those lands that have been identified as a habitat for endangered or threatened species. According to Section 2052.1 of the Fish and Game Code,if a person needs to address mitigation measures in relation to a particular impact on a threatened species,then those measures will be roughly proportional to the impact that the person has on those species The required measures will be capable of successful implementation,and will maintain the person's objectives as much as possible in relation to section codes. For the purposes of this report,"sensitivity areas"will include historical documentation of actual sightings,breeding areas,population locations as well as current and critical habitats. This document is to notify the buyer whether the Subject Property lies within an area known to be important to the conservation of the California Tiger Salamander,which is listed as a state and/or federally tivewened species. Disclosure Source recommends the buyer contact the California Deparhnent of Fish&Game to ascertain what considerations might be involved as a result of being in this particular habitat sensitive area For further information regarding the California Tiger Salamander habitat sensitive area,please contact the Dept.of Fish&Game at 916-322-2493,or at F ttp//www dfe ca gov/whdab FINDINGS: According to maps in the California Natural Diversity Database of the California Department of Fish and Game,and Critical Habitat Coverage maps from the U.S.Fish and Wildlife Service' The property IS located within a California Tiger Salamander habitat sensitive area. The property IS NOT located within a California Tiger Salamander habitat sensitive area. 11/2/2005 110105-00354 SIGN AND RETURN CHICAGO TITLE COMPANY 78-000 Fred Waring Drive,SUITE 103,PALM DESERT,CALIFORNIA 92211 (760)345-0750 Fax(760)772-8463 Escrow No. 52050042 - K42 Escrow Officer LINDA SALCIDO Date November 3, 2005 NOTICE OF TAX WITHHOLDING REQUIREMENTS In accordance with Sections 18662 and 18668 of the California Revenue and Taxation Code,a buyer may be required to withhold an amount equal to THREE AND ONE-THIRD percent (3-1/3%) of the sales price in the case of a disposition of California real property Interest by either: 1. A seller who Is an individual or when the disbursement Instructions authorize the proceeds be sent to a "financial Intermediary"of the seller,OR 2. A corporate seller that has no permanent place of business in California. The buyer may become subject to penalty for failure to withhold In an amount equal to the greater of Ten percent(10%) of the amount required to be withheld or five hundred dollars($500). However, notwithstanding any other provision included in the California statutes referenced above, no buyer will be required to withhold any amount or be subject to penalty for failure to withhold if: 1. The sales price of the California real property conveyed does NOT exceed one hundred thousand dollars($100,000),OR 2. The seller executes a written certificate, under the penalty of perjury, certifying that the seller is a corporation with a permanent place of business In California,OR 3. The seller,who is an individual,executes a written certificate,under the penalty of perjury,of any of the following: A. That the California real property being conveyed is the Seller's principal residence (within the meaning of Section 121 of the Internal Revenue Code). B. That the California real property being conveyed Is or will be exchanged for property of like kind(within the meaning of Section 1031 of the Internal Revenue Code),but only to the extent of the amount of gain not required to be recognized for California Income tax purposes under Section 1031 of the Internal Revenue Code. C. That the California real property has been compulsorily or Involuntarily converted (within the meaning of Section 1033 of the Internal Revenue Code)and that the seller Intends to acquire property similar or related In service or use so as to be eligible for nonrecognition of gain for California Income tax purposes under Section 1033 of the Internal Revenue Code. D. That the California real property transaction will result In a loss for California Income tax purposes. The seller Is subject to penalty for knowingly filing a fraudulent certificate for the purpose of avoiding the withholding requirement. The California statutes referenced above include provisions which authorize the Franchise Tax Board to grant reduced withholding and waivers from withholding on a case-by-case basis for corporations or other entities. Additionally,under the federal'Foreign Investment In Real Property Tax Act"(FIRPTA)as amended and related laws, a buyer may be required to withhold, and could be liable for, an additional tax equal to TEN percent (10%) of the sales price of the real property being conveyed, in the case of a seller who may be classified as a"foreign person"under Section 1445 of the Internal Revenue Code of 1986. IRS Regulations state that a foreign seller lacking an Individual Taxpayer Identification Number(ITIN) will automatically be subject to withholding upon the transfer of real property.A seller may apply for an ITIN,however,it must be obtained prior to the time of transfer. The Federal statute referenced above Includes provisions that authorize the IRS to grant reduced withholding and waivers from withholding on a case-by-case basis. The parties herein may wish to investigate these options with their own legal or financial advisors orthe Internal Revenue Service. (Page One of Two) CHICAGO TITLE COMPANY 78-000 Fred Waring Drive,SUITE 103,PALM DESERT,CALIFORNIA 92211 (760)345-0750 Fax(760)772-8463 Escrow No. 052GS0042 Escrow Officer LINDA SALCIDO Date November 3, 2005 NOTICE OF TAX WITHHOLDING REQUIREMENTS (Continued) The escrow holder will not undertake to withhold or remit funds to any taxing authority, unless specifically instructed in writing to do so.In the event escrow is so requested,appropriate mutual instructions will be required. DUE TO THE COMPLEXITY OF THESE TAX LAWS, AND THE PENALTY PROVISIONS FOR FAILURE TO WITHHOLD, IT IS RECOMMENDED THAT THE PARTIES TO THIS TRANSACTION SHOULD SEEK THE PROFESSIONAL ADVICE AND COUNSEL OF AN ATTORNEY, ACCOUNTANT OR FINANCIAL ADVISOR CONCERNING THE EFFECT OF THESE LAWS ON THIS TRANSACTION AND SHOULD NOT ACT ON ANY STATEMENTS MADE OR OMITTED BY THE ESCROW OR CLOSING OFFICER, COMMUNITY REDEVELOPMENT AGENCY PARTNERS LAND DEVELOPMENT, LLC, AN OF THE CITY OF PALM SPRINGS, CALIFORNIA ARKANSAS LIMITED LIABILITY CORPORATION A PUBLIC BODY, CORP(O/(RRAA^T/E'�)AND POLITIC ITS; BY: CHAIRMAN ATTEST: BY: ITS: Ry AS SECRETARY j/ �'ali�D?MJi)VrIf�(?i L�7 U5,'a C'{,Dd2`FL, lI',J}rr:;'Iry C'ID's,L-'U, APPROVED AS ORM; WOODRUFF, S LIN & SMAR BY: DOUGLA C. 0 AGENCY COUNSEL ESCROW INSTRUCTIONS1'7;oJlU"; TO: CHICAGO TITLE COMPANY, licensed by the California Department of Insurance i 78-000 Fred Waring Drive, SUITE 103, PALM DESERT, CALIFORNIA 92211 (760)345-0750 Fax(760)772-8463 Escrow No. 52050042A-K42 Escrow Officer LINDA SALCIDO Date October 25,2005 1• On or before the TIME LIMIT DATE of on or before November 7, 2005 2. 3. The undersigned hands you a"2005 Disposition and Development Agreement"dated October 25, 2005, hereinafter 4. the"Agreement", executed by"The Community Redevelopment Agency of the City of Palm Springs,as Seller and 5. "Partners Land Development, L-C,an Arkansas limited liability Corporation", as Buyer 6. 7. You are authorized to act in accordance with these instructions, and any amendments thereto.You are not to be 8. concerned with or liable for,any memoranda or other agreements between the parties as contained in the attached 9. document, except those relating to the transfer of title, prior to the close of escrow.the parties to this transaction wil 10. cause any balance of funds due and or documents required to be deposited with you. 11. 12. THE FOLLOWING ADDITIONAL TERMS AND CONDITIONS SHALL APPLY IN THIS ESCROW: 13. 14. The following supplemental escrow instructions, are added for clarification purposes and for the purposes of enabling 15. Chicago Title Company as Escrow Holder to utilize said agreement as your escrow instructions. In the event of a 16. conflict between the agreement and the escrow holder's general provisions the terms of the agreement shall control. 17. 18. THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS hands you a Grant Deed 19, conveying the property described herein to vestee named below; 20. 21. "PARTNERS LAND DEVELOPMENT, LLC,AN ARKANSAS LIMITED LIABILITY CORPORATION" buyer (s) herein; 22. 23. which you are instructed to use when you can obtain a CLTA OWNERS POLICY and any policy required by buyer's 24. lender,(IF ANY)which policies of title insurance will contain the insuring clauses, exceptions, exclusions, provisions 25. and stipulations customarily contained in the printed provisions of such form with liability not less than$2,760,000.00 26 describing the land in the City of Palm Springs County of RIVERSIDE State of California, described as: 27. 28. APN 681-808-016, marked as parcel EXHIBIT A,which is attached hereto and incorporated herein by reference, 29. COVERING approximately 8.78 acres per survey,vacant land in Palm Springs, California. 30. 31. Subject to: 1. Real Property General and special taxes for fiscal year 2005/2006,and subsequent years, including 32. reassessments if any and including any special district levies or personal property taxes, payment for which are 33. included therein and collected therewith and improvement bond assessments,when applicable. 34. 35, 2. The Lien of Supplemental Taxes, if any, assessed pursuant to the provisions of Chapter 3.5 (commencing with 36. Section 75) of the Revenue and Taxation Code of the State of California. 37. 38. 3. Covenants, conditions, restrictions, rights of way, easements and reservations of record. 39. ADDITIONAL INSTRUCTIONS: 40. 41. A. The"Effective Date"as referenced in the Agreement is October 31, 2005. 42. 43. The date of the"Opening of Escrow"as referenced in the the Agreement is October 28,2005. 44. 45. The date referenced of the Agreement for Seller's delivery of the documents to Buyer being five (5) days after 46. the Acceptance Date is November 2,2005. 47. 48. Purchase price is TWO MILLION, SEVEN HUNDRED AND SIXTY THOUSAND DOLLARS ($2,760,000.00). 49. EHSH-10/11/06bk (Page 1) ESCROW INSTRUCTIONS (Continued) TO: C;HICAGO TITLE COMPANY Escrow No. 52050042A-K42 Date October 25, 2005 1. 2. Buyer's deposit shall be invested by Escrow Holder in accordance with the provisions of the Agreement 3. only upon Escrow Holder's receipt from Buyer of the executed investment instructions and completed and executed 4. Form W-9. 5. 6. The"Close of Escrow"as referenced in the Agreement shall be on or before NOVEMBER 7, 2005, 7. 8. SUBJECT TO AND CONTINGENT UPON; 9. This escrow is to close concurrent with Sellers' Escrow#52050042,with Chicago Title Escrow Company. 10. 11. B. Pursuant to the provisions of Section 411 of the Agreement, Closing costs shall be allocated between Buyer 12. and Seller per their individual estimated closings statements which will be approved prior to the close of escrow. 13. Seller and Buyer shall each pay$1,500.00 representing one-half of the Escrow Fee. 14. 15. In the event the real property taxes have not been segregated for subject property, Escrow Holder shall be 16 provided with specific instructions from Seller and Buyer as to the amount to be used for the proration of taxes as 17. referenced in the Agreement. Further, Escrow Holder shall be notified in writing by Seller and Buyer of any other 18 prorations to be made through the closing of this escrow. 19. 20. Parties shall notify escrow holder, in writing, prior to close of escrow, if Parties elects to effect a tax deferred 21. exchange through this escrow. In the event escrow holder does not receive written notification from Buyer or Seller, 22. escrow holder will close this escrow without any provisions for an exchange for the benefit of either Buyer or Seller. 23. 24. C. Buyer shall furnish Escrow Holder with a completed Preliminary Change of Ownership Report required by 25. Assembly bill 3121, State of California. In the event said report is not handed Escrow Holder for submission to the 26. County Recorder upon recording the Grant Deed, Buyer herein acknowledges that the County shall access an 27. additional$20.00 feet for recording Grand Deed and Escrow Holder shall debit the Buyer for same. Escrow Holder 28. shall be relieved of all responsibility and or liability in connection with the accuracy, completeness or correctness 29. 30. Parties to this transaction are aware and understand that as a result of the passage of the Tax Reform Act of 31. 19815 which added Section 6045(e)to the Internal Revenue Code,the closing of this transaction will be delayed in the 32. event Seller(s)to this escrow should refuse to remit to Escrow Agent/Holder, prior to close of escrow, "Seller's 33. Certification for Compliance with Real Estate Reporting Requirements,"with all necessary information fully completed 34. and duly executed. 35. 36. Escrow Holder shall not be concerned with, or liable for payment, adjustment or proration of, Supplemental 37. Taxes assessed pursuant to Chapter 498, Statutes of 1983, State of California, unless specifically reflected on the Tax 36. Assessor's rolls. All assessments not shown on the tax rolls are to be adjusted outside of escrow.The title policy will 39. contain an exception for the lien of any assessmentof Supplemental Taxes assessed pursuant to Chapter 498, 40. Statutes of 1983. 41. 42. THIS ACCEPTANCE OF AN AGENCY AS ESCROW HOLDER IS FURTHER CONDITIONED ON THE FOLLOWING: 43. 44. 1. ESCROW HOLDER'S GENERAL PROVISIONS WHICH ARE INCORPORATED HEREIN BY THIS REFERENCE 45. AND ATTACHED HERETO; 46. 47. 2. ESCROW HOLDER RESERVES THE RIGHT TO REQUIRE MUTUAL INSTRUCTIONS IN THE EVENT THIS BEIICSH --10/14/96bk (Page 2) ESCROW INSTRUCTIONS (Continued) TO: CHICAGO TITLE COMPANY Escrow No. 52050042A-K42 Date October 25, 2005 1. ESCROW IS TERMINATED, AND UPON ANY SUCH TERMINATION TITLE AND/OR ESCROW CHARGES FOR 2. SERVICES RENDERED MAY BE DUE; 3. 4. 3. ESCROW HOLDER RESERVES THE RIGHT TO REQUIRE MUTUAL DISBURSEMENT INSTRUCTIONS IN THE 5. EVENT SUCH DISBURSEMENT IS TO BE MADE PURSUANT TO EARLY RELEASE PROVISIONS,THE 6. TERMINATION OF ESCROW OR A LIQUIDATED DAMAGE PROVISION CONTAINED IN SAID AGREEMENT; 7. 6• 4. ESCROW HOLDER RESERVES THE RIGHT TO REQUIRE THE PARTIES TO DELIVER WRITTEN APPROVAL, 9. SATISFACTION OR WAIVER OF ALL CONDITIONS PRECEDENT TO (1) ANY RELEASE OF FUNDS AND/OR (2) 10. CLOSE OF THIS ESCROW; 11. 12. 5. ANY PROVISIONS FOR RELEASE (PAYMENT) OF FUNDS PRIOR TO THE CLOSE OF ESCROW IS MADE WITH 13. THE KNOWLEDGE OF THE CONDITION(S) OF ESCROW AND TITLE TO THE PROPERTY THAT IS THE SUBJECT 14. OF THIS ESCROW. ESCROW HOLDER SHALL HAVE NO RESPONSIBILITY OR LIABILITY EXCEPT COMPLIANCE 15. WITH ANY SUCH RELEASE (PAYMENT) INSTRUCTION AND ANY PAYMENT SO MADE IS WITHOUT RECOURSE 16. UPON CHICAGO TITLE COMPANY; 17. 18. 6. IF:YOU WANT TO WIRE TRANSFER FUNDS TO CHICAGO TITLE COMPANY, PLEASE USE THE FOLLOWING 19. WIRING INSTRUCTIONS: BANK: UNION BANK 20. 2001 MICHELSON DRIVE 21. IRVINE, CALIFORNIA 92714 22. BANK ABA: 122 000 496 23. ACCOUNT NAME: CHICAGO TITLE C&I ESCROW ACCOUNT 24. ACCOUNT NO: 9120052850 25. FOR CREDIT TO: ESCROW NO.52050042A-K42 26. ATTN: LINDA SALCIDO 27. PLEASE NOTIFY ESCROW HOLDER WHEN YOU WIRE FUNDS. 26. 29. Parties acknowledge that depending on the type(commercial, residental) and Location (city) of real property 30, involved in this Escrow,there may be disclosure(s) as well as civil ordinance requiement(s)that would affect the 31. transfer of the real property.The Buyer and Sellers signature on these instructions shall be deemed evidence by 32. escrow holder that Buyer and Seller have obtained counsel, are aware of any disclosures/civil ordinance 33. requirements will comply with same outside of escrow. Unless otherwise instructed in writing to the contrary 34. elsewhere herein, Escrow Holder shall have no responsibilities or liabilities in connnection herewith except as 35. provided under the designation agreement. 36, 37. Buyer and Seller acknowledge that they have been advised to seek the counsel of their own Attorney, 3s. Accountant or other advisor and are relying solely on their inquiry and information.There are no Real Estate Agents in 39. connection with this escrow. Buyer and Seller agree that Escrow Holder is not to be held liable, responsible or 40. concerned with any such requirements or regulations, except as set forth in these instructions. 41. 42. Escrow holder shall not be liable or responsible for the content or enforceability of any document(s)drawn outside of 43. escrow. Escrow holder's only responsibility in connection with said document(s) is to deliver and/or to record same 44. as per the parties instructions. 45. 46. End of Instructions. 47. BEIICSH--10/14/86bk (Page 3) GENERAL PROVISIONS TO: C;HICAGO TITLE COMPANY Escrow No. 52050042A - K42 Date October 25, 2005 1. Time is of the essence of these instructions. If this escrow is not in a condition to close by the TIME LIMIT DATE as provided for herein and written demand for cancellation is received by you from any principal to this escrow after said date,you shall act in accordance with paragraph 7 of the General Provisions. If no conflicting instruction or demand for cancellation is made,you will proceed to close this escrow when the principals have complied with the escrow instructions. In the event one or more of the General Provisions are held to be invalid, those remaining will continue to be operative.Any amendments of or supplements to any instructions affecting escrow must be in writing.You are authorized to order demands for, and pay at the close of escrow any encumbrances of record necessary to place title in the condition called for without further authorization.You are further authorized, prior to the close of escrow,to pay from funds on deposit any fees necessary to obtain any demand and/or report as may be required in this escrow and at the close of escrow charge the parties as appropriate. The principals will hand you any funds and instruments required from each respectively to complete this escrow. Interest on any new financing may begin to accrue on the date loan funds/proceeds are disbursed by the new lender,and borrower agrees to pay same in accordance with lender's instructions. 2. You are instructed to deliver and/or record all documents and disburse all funds when you can comply with these instructions and issue any title insurance policy as called for herein. These instructions, together with any amendments and/or supplements, may be executed in counterparts and together shall constitute one and the same document. If these instructions relate to a sale, and if there is no other written agreement between the parties pertaining thereto, buyer agrees to buy and seller agrees to sell upon the terms and conditions hereof. All documents, balances and statements due the undersigned are to be mailed to the respective addresses shown herein, unless otherwise directed. In the event that any party to this escrow utilizes facsimile transmitted signed documents, all parties hereby agree to accept and hereby instruct the escrow holder to rely upon such documents as if they bore original signatures.Buyer and seller further acknowledge that any documents to be recorded bearing non original (facsimile)signatures will not be accepted for recording by the county recorder. 3. The phrase"close of escrow"(or COE)as used in this escrow means the date on which documents are recorded,unless otherwise specified. 4. Assume a 3D day month in any proration herein provided, and unless otherwise instructed, you are to use the information contained in the latest available tax statement, including any supplemental taxes of record, rental statement as provided by seller and beneficiary's or association statements delivered into escrow for proration purposes. 5. Upon close of escrow you are instructed to charge our respective accounts the costs attributable to each,including but not limited to costs as provided for herein and/or in accordance with our respective estimated statements attached hereto and made a part hereof. 6. Recordation of any instruments delivered through this escrow,if necessary or proper for the issuance of the policy of title insurance called for, is authorized.No examination or insurance as to the amount or payment of personal property taxes is required unless specifically requested. 7. If demand to cancel is submitted after the Time Limit Date,any principal so requesting you to cancel this escrow shall file notice of demand to cancel in your office in writing.You shall within three (3)working days thereafter mail by certified mail one copy of such notice to each of the other principals at the address stated in this escrow. Unless written objection thereto is filed in your office by a principal within fifteen (15) calendar days after the date of such mailing,you are instructed to cancel this escrow. If this is a sale escrow,you may return the lender's papers and/or funds upon lender's demand. B. In the event that this escrow is canceled, any fees or charges due Chicago Title Company including cancellation fees and any expenditures incurred or authorized shall be paid from funds on deposit unless otherwise specifically agreed to or determined by a court of competent jurisdiction. Upon payment thereof, return documents and monies to the respective parties depositing same,or as ordered by the court,and void any executed instruments. 9. If there is no written activity by a principal to this escrow within any six-month period after the Time Limit Date set forth herein, Chicago Title Company may, at its option,terminate its agency obligation and cancel this escrow,returning all documents, monies or other items held,to the respective parties entitled thereto,less any fees and charges as provided herein. 10. If,'for any reason,funds are retained or remain in escrow after the closing date,you may deduct therefrom a reasonable charge as custodian, of not less than$25.00 per month,unless otherwise specified. (Continued) BEIGPiSH-1e/23/53-Ire GENERAL PROVISIONS (Continued) TO: CHICAGO TITLE COMPANY Escrow No. 52050042A - K42 Date October 25, 2005 11. In the event that you should receive or become aware of conflicting demands or claims with respect to this escrow, or the rights of any of the parties hereto,or any money or property deposited herein,you shall have the absolute right at your option to discontinue any or all further acts until such conflict is resolved to your satisfaction. 12. In the event that any Offer to Purchase,Deposit Receipt,or any other form of Purchase Agreement is deposited in this escrow,you,as escrow holder,are not to be concerned with the terms of such document and are relieved of all responsibility in connection therewith.The foregoing is not applicable in any transaction in which Chicago Title has specifically agreed to accept an Offer to Purchase,Deposit Receipt or other form of Purchase Agreement as escrow instructions. In any event,you are not to be concerned or liable for items designated as"memoranda"in these escrow instructions nor with any other agreement or contract between the parties. 13. The parties hereto,by execution of these instructions acknowledge that the escrow holder assumes no responsibility or liability whatsoever for the supervision of any act or the performance of any condition which is a condition subsequent to the closing of this escrow. 14. In the absence of instructions to the contrary, you are hereby authorized to utilize wire services, overnight, next day, or other expedited delivery services(as opposed to the regular U.S.Mail)and to charge the respective party's account accordingly. 15. Concerning any real property involved in this transaction you are released from and shall have no liability, obligation or responsibility with respect to (a)withholding of funds pursuant to Section 1445 of the Internal Revenue Code of 1986 as amended,and to Sections 18662 and 18668 of the California Revenue and Taxation Code, (b) advising the parties as to the requirements of said Section 1445, (c) determining whether the transferor is a foreign person or a non-resident under such Section, nor (d) obtaining a non foreign affidavit or other exemption from withholding under said Sections nor otherwise making any inquiry concerning compliance with such Sections by any parry to the transaction. 16. If you pay a demand to pay in full a revolving line of credit or equityline loan,you are hereby instructed on my behalf and for my benefit,to request that the lender issuing said demand cancel said revolving line or equityline of credit. 17. You are authorized to furnish to any affiliate of Chicago Title Company, any attorney, broker or lender identified with this transaction or any one acting on behalf of such lender any information,instructions,amendments,statements,or notices of cancellation given in connection with this escrow. If any check submitted to escrow is dishonored when presented for payment,you are authorized to notify all principals and/or their respective agents of such non payment. 18. All notices, change of instructions, communications and documents are to be delivered in writing to the office of Chicago Title Company,as set forth herein. 19, All funds received in this escrow shall be deposited with other escrow funds in one or more non-interest bearing demand accounts of Chicago Title Company in any state or federal bank or any state or federal savings and loan association ("the depository institutions") and may be transferred to any other such accounts. The:parties to this escrow acknowledge that while these accounts do not bear interest,because of these and other banking relationships with the depository institutions, Chicago Title Company and its affiliates may receive from some of the depository institutions an array of banking services,accommodations or other benefits.Chicago Title Company and its affiliates also may elect to enter into other business transactions with or obtain loans for investment or other purposes from some of the depository institutions.All of such services,accommodations and other benefits shall accrue, directly or indirectly, to Chicago Title Company and its affiliates and they shall have no obligation to account to the parties to this escrow for the value of such services, accommodations or other benefits. All disbursements shall be made by Chicago Title Company check,unless otherwise instructed. Chicago Title Company shall not be responsible for any delay in closing if funds received by escrow are not available for immediate withdrawal. Chicago Title Company may, at its option, require concurrent instructions from all principals prior to release of any funds on deposit in this escrow. 20. You are authorized to destroy or otherwise dispose of any and all documents, papers, instructions, correspondence and other material pertaining to this escrow at the expiration of six (6)years from the close of escrow or cancellation thereof,without liability and without further notice. (Continued) BEIIBP23H-10/23/93-Irc GENERAL PROVISIONS (Continued) TO: CHICAGO TITLE COMPANY Escrow No. 52050042A - K42 Data October 25, 2005 IMPORTANT NOTICE Except for wire transfers,funds remitted to this escrow are subject to availability requirements imposed by Section 12413.1 of the California Insurance Code, CASHIER'S, CERTIFIED or TELLER'S checks, payable to CHICAGO TITLE COMPANY are generally available for disbursement on the next business day following the date of deposit. Other forms of payment may cause extended delays in the closing of your transaction pursuant to the requirements imposed by State Law. (Wire transfer information available upon request) ALL PARTIES TO THIS ESCROW ACKNOWLEDGE THAT CHICAGO TITLE COMPANY DOES NOT PROVIDE LEGAL ADVICE NOR HAS IT MADE ANY INVESTIGATION, REPRESENTATIONS OR ASSURANCES WHATSOEVER REGARDING THE LEGAL ASPECTS OR COMPLIANCE OF THIS TRANSACTION WITH ANY TAX, SECURITIES OR ANY OTHER STATE OR FEDERAL LAWS. IT IS RECOMMENDED THAT THE PARTIES OBTAIN INDEPENDENT LEGAL COUNSEL AS TO SUCH MATTERS. THE FOREGOING ESCROW INSTRUCTIONS AND GENERAL PROVISIONS HAVE BEEN READ AND ARE UNDERSTOOD AND AGREED TO BY EACH OF THE UNDERSIGNED. COMMUNITY REDEVELOPMENT AGENCY PARTNERS LAND DEVELOPMENT, LLC, AN OF THE CITY OF PALM SPRINGS, CALIFORNIA ARKANSAS LIMITED LIABILITY CORPORATION A PUBLIC BODY, CORPORATE AND POLITIC BY: ,a� ITS; BY•`��.1 �L�ir CHAIRMAN AT'T,EST-:) -- _ BY : ITS: // AS51 TANT SECRETARY \* /APPROVD TO FOR � WOODRU RADLINSMART BY: DOUG S C I HUL1,AND, AGENCY COUNSEL Current Address: Current Address: Telephone: Telephone: BEIGP33H-10/23/93-Irc AMENDMENT TO ESCROW INSTRUCTIONS TO: CHICAGO TITLE COMPANY, licensed by the California Department of Insurance 78-000 Fred Waring Drive, SUITE 103, PALM DESERT, CALIFORNIA 92211 (760)345-0750 Fax (760)772-8463 Escrow No. 52050042A-K42 Escrow Officer LINDA SALCIDO Date November 2, 2005 Property: vacant land APN 681-070-016, Palm Springs, CALIFORNIA 1. Your original escrow instructions dated OCTOBER 25, 2005 and any amendments and/or supplements thereto, are 2. hereby amended and/or supplemented as set forth herein: 3. 4. Escrow Holder is auhthorized and instructed to transfer funds due the undersigned seller to Chicago Escrow 5. company Escrow#52050042 at close of escrow. Seller will provide escrow holder with instructions for remaining 6. proceeds in writing. 7. B. 9. 10. ALL.OTHER TERMS AND CONDITIONS ARE TO REMAIN THE SAME. 11. 12. COMMUNITY REDEVELOPMENT AGENCY 13. OF THE CITY OF PALM SPRINGS, CALIFORNIA 14. A PUBLIC BODY, CORPORATE AND POLITIC 15. 1s. 17. BY: 18. CHAIRMAN ` 19 ATTEST: fi 20. 21. 7) 7 22 ASE�I 7A.NT SECRETARY 23: �/ - 24./� 25 /APPROVED A -70 FORM; 26. WOO DR FF PRADLIN &SjUTART 27. f' 28. BY: 29. DOU S OLLAND,AISENCY COUNSEL 30. 31. 32. 33. 34. 35, 36. 37. 38. 39. 40. 41. 42. 43. 44. 45. 46. 47. 48. 49. 50. 51. 52. 53. 54. 55. 56. 57. 58. 59. 60. 61. AESCROW 01/13/97bk (Page 1) AMENDMENT TO ESCROW INSTRUCTIONS ,,-_, B kl��11111' TO: CHICAGO TITLE COMPANY, licensed by the California Department of Insurance i 78-000 Fred Waring Drive, SUITE 103, PALM DESERT, CALIFORNIA 92211 (760)345-0750 Fax(760)772-8463 Escrow No. 52050042A-K42 Escrow Officer LINDA SALCIDO Date November 2,2005 Property: vacant land APN 681-070-016, Palm Springs, CALIFORNIA 1. Your original escrow instructions dated October 25,2005 and any amendments and/or supplements thereto, are 2. herelby amended and/or supplemented as set forth herein: 3. 4. Buyers and Sellers acknowledge and agree that,with the exception of receipt by Escrow Holder of funds and 5. documents required pursuant to the agreements as amended herein, all conditions to the close of escrow have been 6. satisfied and/or waived. 7. e• ALL OTHER TERMS AND CONDITIONS ARE TO REMAIN THE SAME. s. 10. 11, 12. COMMUNITY REDEVELOPMENT AGENCY 13. OF THE CITY OF PALM SPRINGS, CALIFORNIA 14. A PUBLIC BODY, CORPORATE AND POLITIC 15. 16. l 17. BY: _L072 /p�Ir 18, CHAIRMAN 19. n17Ei 20. 22. ;A,S' 188TANT SECRETARY UI 23 24 APPROVED 6VOFORM; 26. WOOD7EPO/ Od/ PRADLIN MART 27. ze. BY: 29. DOU lA/ . HOLLAND, ENCY COUNSEL 30. 31. PARTNERS LAND DEVELOPMENT, LLC,AN ARKANSAS LIMITED LIABILITY CORPORATION 32. -93. BY: 34. ITS;_ 35. 36. 37. BY: 38. ITS:_ 39. 40. 41. 42. 43. 44. 45. 46, 47. 48. 49. 50. 51. 52. 53. 54. 55. 56. 57. 58. 59. 60. 61. AESC2--01/13/e7bN (Page 1) CHICAGO TITLE COMPANY ESTIMATED SELLER'S SETTLEMENT STATEMENT PAGE: 01 ESCROW NUMBER: 05740-52050042A-001 ORDER NUMBER: 05740-52050042A CLOSING DATE: 11/07/05 CLOSER: LINDA SALCIDO BUYER: SELLER: PROPERTY: vacant land APN 681-070-016, Palm Springs, CALIFORNIA CHARGE SELLER CREDIT SELLER Sales Price $ $ 2,760, 000.00 FUNDS TRANSFERED TO 5205042 830, 000.00 Settlement or Closing Fee To CHICAGO TITLE 1, 500.00 Document Preparation To CHICAGO TITLE 25 .00 Recording Fees 100.00 City/County Tax/Stamps 1,518 .00 Tax hold 2004/2005 2nd half taxes plus penalties 10,724.69 natural hazards 50.00 Funds Due To Seller At Closing 1, 916, 082.31 -------------- -------------- TOTALS $ 2,760, 000.00 $ 2,760, 000 . 00 -------------- -------------- -------------- -------------- COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA A PUBLIC BODY, CORPORATE AND POLITIC BY: CHAIRMAN `l ATTEST: B3t tivV � G-il /S''SY7S T SECRETARY F�APPROVED A �0 FORM; WOODRU �F', RAD IN & SMART BY: DOUGLAS OLLAND, AGENCY COUNSEL DATE: 11/02/05 17:08 :3