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KSL/Additional Agr - 2002ADDITIONAL AGREEMENT This ADDITIONAL AGREEMENT ( "Agreement ") is made and entered into as of April 29, 2002 ( "Reference Date "), by and among (1) LA QUINTA REDEVELOPMENT AGENCY, a public body, corporate and politic ( "Agency "), (2) KSL LAND HOLDINGS, INC., a Delaware corporation ( "KSL "), and (3) KSL DESERT RESORTS, INC., a Delaware corporation ( "Desert Resorts "). RECITALS A. Desert Resorts, an affiliate of KSL, owns and operates the La Quinta Resort & Club, a resort hotel in the City of La Quinta ( "La Quinta Resort"). KSL and Desert Resorts are sometimes referred to herein collectively as the "Benefited Parties." B. Concurrently with the execution of this Agreement, Agency and KSL have also entered into that certain Option Agreement ( "Option Agreement ") pertaining to Agency's potential acquisition from KSL of approximately 525 acres of land and improvements thereon (the "Site "). The Site is legally described in Exhibit "A" hereto. C. If the Agency exercises the option pursuant to the Option Agreement, the parties thereafter intend to enter into the Agreement of Purchase and Sale Agreement and Joint Escrow Instructions attached as Exhibit "B" to the Option Agreement (the "Purchase Agreement'). D. Agency acknowledges that if it acquires the Site pursuant to the Purchase Agreement, it contemplates as of the Reference Date that it may, but is not obligated to, undertake, participate in, financially assist, cause, or facilitate the development on the Site with uses that may include, but not be limited to, one or more publicly owned golf courses (the "Public Golf Course(s)"), hotel(s), motel(s), or other commercial uses which may include one or more "condo- hotels" (as that term is defined in Section 1.2 hereinbelow), and/or Agency- or City -owned meeting spaces or conference facilities (as described in Section 1.3 herembelow). E. The parties desire in this Agreement to set forth their mutual understanding concerning Desert Resort's equal opportunity to (i) have access to "golf packages" offered by the Public Golf Course(s) for the guests of the La Quinta Resort, and (ii) to have the ability to compete to be the initial manager of the Condo - Hotel(s), and (iii) have access to use the public meeting spaces or conference facilities, all of the foregoing in accordance with the terms of this Agreement. AGREEMENT In consideration of the foregoing Recitals and the covenants and promises hereinafter contained, and for good and valuable consideration, the receipt and sufficiency is hereby acknowledged, the parties hereto agree as follows: 3941015610 -0048 1 268916.10.04/26 /02 4 1. Golf Packages; Condo -Hotel Management Civic Meeting Facilities 1.1 If the Public Golf Course(s) is /are developed on the Site, Agency agrees that it shall cause, subject to applicable law and any restrictions or limitations reasonably required for bond or other financing for acquisition and development of the Public Golf Courses, the manager of the Golf Course(s) to offer to Desert Resorts for the guests of the La Quinta Resort "golf packages" that are similar to golf packages that are offered to any other hotel, motel, travel lodge, or resort. As used herein the term "golf packages" means a program or programs of discounted rates and/or preferred tee times, but shall specifically exclude any special or discounted rates or services or preferred tee times made available to individuals who are residents of the City of La Quinta, for their personal use and consumption in accordance with the rules and regulations of such program or programs. 1.2 Agency agrees to cause the owner(s) of any Condo - Hotel(s) (as that term is defined below) that is /are developed on the Site to provide to Desert Resort an opportunity to compete, along with any other firms or entities which may be under consideration, to become the initial manager of such Condo - Hotel, only if such owner(s), including by or through a condominium association or timeshare association, engage outside management to manage their Condo - Hotel, and only if and to the extent such requirement placed by Agency on such owner(s), or the implementation of that requirement, is permitted by applicable law or regulation or by any or rule or opinion from an applicable regulatory body with jurisdiction, including but not limited to the California Department of Real Estate or California Department of Corporations. As used in this Section 1.2, the term "Condo - Hotel(s)" means one or more developments that is /are a fractional or time -share condominium project in which owners of units are limited to occupancy for a specified number of days per year and which may but is not required to contain units with multiple "lock- offs" or "keys" (i.e., units with two or more dwelling areas that can be used as bedrooms which may be separately accessed by key and which are rented on a "per night" basis). 1.3 If Agency -owned or City -owned meeting spaces or conference facilities are developed on the Site which are generally available for public use, Agency agrees that it shall cause, subject to applicable law and any restrictions or limitations reasonably required for bond or other financing for acquisition and development of the meeting spaces or conference facilities, the operator of such spaces /facilities to permit the La Quinta Resort to have access to use such spaces /facilities on the same basis and subject to the same rules, regulations, and pricing as any other private commercial user in the City. 2. Condition Precedent. This Agreement shall not be effective unless and until the escrow described in the Purchase Agreement has closed with fee title to the Property having been conveyed to the Agency in accordance with the terms of the Purchase Agreement by recordation, in the official records of Riverside County, of the grant deed in the form attached as an exhibit to the Purchase Agreement ( "Grant Deed "). If the Grant Deed is recorded, (i) the date of recordation of the Grant Deed shall be the "Effective Date" of this Agreement, and (ii) any party hereto shall be permitted to prepare and sign, and require the other parties to sign, an Addendum to this Agreement in the form of Exhibit `B" hereto and incorporated herein, that confirms the date of recordation of the Grant Deed. 3941015610 -0048 2 268916.10 a04i2 §/02 3. Expiration of Agreement. 3.1 Notwithstanding anything in this Agreement, the Option Agreement, the Purchase Agreement, or any other agreement, to the contrary, should this Agreement become effective pursuant to Section 2 above, this Agreement and all of its terms, provisions, rights, and obligations shall automatically expire without notice, and shall be of no force or effect, as of the earlier of (i) the "Automatic Outside Expiration Date" (as defined below) or (ii) the "Automatic Earlier Expiration Date" (as defined below). As used herein: (1) the term Automatic Outside Expiration Date means the date that is seven (7) years from the Effective Date, and (2) the term Automatic Earlier Expiration Date means the date prior to the Automatic Outside Expiration Date that any of the events set forth in the following clauses (a) or (b) first occurs: (a) either Benefited Party sells, transfers, or assigns, one or more times and from time to time, in the aggregate, a controlling interest in said Benefited Party to an unrelated third party; or (b) either Benefited Party sells, transfers, or assigns fee title to the real property upon which the La Quinta Resort is situatedto an unrelated third party. Additionally, as used in this clause (2), the term (A) an "unrelated third party" means a person, firm, or entity, including but not limited to a sole proprietorship, general or limited partnership, limited liability company, or corporation, whose controlling or managing general partner(s), managing member, or majority shareholder(s) are not the principals who own the majority of shares of that Benefited Party as of the Reference Date of this Agreement, and (B) a "controlling interest" shall mean an ownership (or other equitable interest). in an entity which, in the aggregate, gives the owner (or holder of the equitable interest) thereof the right to control the management or policies of that entity. 3.2 If either Benefited Party makes a sale, transfer, or assignment as set forth in Section 3.1(2) above, that Benefited Party shall immediately provide written notice to Agency of that transfer or assignment. 3.3 Upon the expiration or termination of this Agreement, KSL and Desert Resorts, at the written request of Agency, shall sign and deliver a quitclaim deed in a form reasonably required by a reputable title company, releasing all rights and interests in and to this Agreement. 4. Representation and Warranty Concerning No Recordation. Each party hereto represents and warrants to the other that it shall not record this Agreement. 5. No Reliance on Other Agreements. No party hereto nor any agents nor any related entities have made any statement or representation to any other party regarding any fact relied upon in entering into this Agreement, and each party expressly states it does not rely upon any statement, representation or promise of any other party or any party's agent or related entities in executing this Agreement, except as is expressly stated in this Agreement. Each party to this Agreement has made such investigation of the facts and law pertaining to this Agreement, and of all other matters pertaining thereto, as it deems necessary, and has consulted with legal counsel concerning these matters and all of the terms of this Agreement, or has knowingly and voluntarily waived its right consult legal counsel of its choice concerning this Agreement of the terms hereof. 394/015610 -0048 3 268916.10 .04126,02 6. Severability. In the event any term, covenant, condition, or provision of this Agreement shall be held by a court of competent jurisdiction to be invalid, the remaining provisions shall continue in full force and effect. 7. Amendment; Waives_. This Agreement may be amended, only by written instrument approved and signed by all of the parties hereto. The waiver by one party of the performance by any other party of any provision of this Agreement shall not invalidate this Agreement, nor shall it be considered as a waiver of any subsequent breach of the same or other provisions of this Agreement. Any waiver provided by KSL or Desert Resorts shall be deemed a waiver provided by both KSL and Desert Resorts. 8. Default: Remedies. If any party hereto fails to timely perform any term or provision of this Agreement which it is obligated to perform, such party shall be in default of this Agreement; provided, however, the party shall not be deemed to be in default if (i) such party cures, corrects, or remedies such default within thirty (30) days after receipt of written notice from either of the other parties specifying such failure, or (ii) for such defaults that cannot reasonably be cured, corrected, or remedied within thirty (30) days, if such party commences to cure, correct, or remedy such failure within thirty (30) days after receipt of written notice specifying such failure and thereafter diligently prosecutes such cure, correction, or remedy to completion. If a default of a party or its respective successors or assigns, if applicable, is not timely cured, corrected, or remedied, the remedy for an uncured default by the defaulting party or its respective successors or assigns, if applicable, notwithstanding anything in this Agreement to the contrary, shall be limited to equitable remedies subject to, and to the extent permitted by, California law. In no event shall there be any entitlement, under this Agreement, to recover damages from any defaulting party and its respective successors or assigns for a default of this Agreement, and such limitation shall specifically preclude all the parties to this Agreement or their respective successors or assigns, if applicable, from recovering from one another or their successors or assigns any monetary, consequential, or economic damages of any kind or nature for a defaulting party's default of this Agreement. 9. Attorney's Fees- Litigation Matters. In any action between or among the parties hereto concerning this Agreement, the prevailing party in the action shall be entitled to recover its costs and expenses including without limitation, litigation costs, expert witness fees, .court costs, and attorney's fees as specified by the court, in addition to whatever other relief the court may grant. Any litigation between the parties hereto concerning this Agreement shall be filed and maintained in the Superior Court of the State of California in and for the County of Riverside or in such other appropriate court in said county. Service of process on KSL and Desert Resorts shall be made in any manner permitted by California law and shall be effective whether served inside or outside California. Service of process on Agency shall be made in accordance with California law. 10. Governing Law. The rights and obligations of the parties hereto shall be construed and enforced in accordance with, and governed by, the internal laws of the State of California without regard to any applicable conflicts of law principles. 11. No Third Party Beneficiaries. No person or entity shall be a third party beneficiary, express or implied, of the terms of this Agreement. 3941015610 -0048 4 268916.10 aN126/02 12. Notices. All notices and communications between the parties hereto required under this Agreement or by law shall be (i) personally delivered, (ii) delivered by reputable same -day or overnight courier service, by facsimile transmission, provided the original is delivered by one of the other means approved herein, or (iii) sent by United States mail, prepaid, certified, return receipt requested. All notices personally delivered, delivered by courier, or by fax (in accordance with the terms hereof) shall be deemed effective upon receipt; mailed notices shall be deemed effective at Noon on the third business day following dispatch. A "business day" as used herein shall mean any day that is not a Saturday, Sunday, or any other day that La Quinta City Hall is closed to the public. Notices delivered by Agency to KSL or Desert Resorts shall be deemed notice delivered to both KSL and Desert Resorts. Notice shall be directed as follows (a party hereto may change the addresses by notice to the other party in accordance herewith): If to KSL and /or Desert Resorts: KSL Land Holdings 50 -905 Avenida Bermudas La Quinta, CA 92253 Attn: Mr. Chevis Hosea Fax: (760) 564 -8190 With copy to: KSL Land Holdings 50 -905 Avenida Bermudas La Quinta, CA 92253 Attn: Legal Dept. Fax: (760) 564 -8003 If to the Agency: La Quinta Redevelopment Agency 78 -495 Calle Tampico La Quinta, CA 92253 Attn: Executive Director Fax: (760) 777- 7101 With copy to: Rutan & Tucker, LLP 611 Anton Blvd., Suite 1400 Costa Mesa, CA 92626 Attn: M. Katherine Jenson, Esq. Fax: (714) 546 -9035 13. Nonliability of Agency Officers. The officers, officials, members, employees, agents, and representatives of the Agency shall not be personally liable for any default or damages arising out of this Agreement. 14. Entire Agreement. This Agreement contains the entire agreement between the parties with respect to the subject matter hereof, and supersedes all previous negotiations, agreements, and understandings, oral or written, between the parties, and no party has relied upon any warranty or representation not contained in this Agreement. 394/015610 -0048 5 268916.10 a04/26/02 15. Successors and Assigns. During the term of this Agreement, the terms and conditions of this Agreement shall be binding on the successors and assigns of the Agency. During the term of this Agreement, the terms and conditions of this Agreement shall be binding on the successors and assigns of KSL and Desert Resorts, provided that any such assignment has not triggered the Automatic Earlier Expiration Date as set forth in Section 3.1(2) above. 16. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, and, when taken together with other signed counterparts, shall constitute one Agreement, which shall be binding upon and effective as to all the parties hereto. 394/015610 -0048 268916) 0 e04/26/02 [end — signature page follows] C' IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the Reference Date set forth hereinabove. "KSL KSL LAND HOLDINGS, INC. B Printed Name: Its: `DESERT RESORTS" B Printed Name: Its: "AGENCY" LA QUINTA REDEVELOPME AGENCY By: Thomas Genovese Executive Director ATTEST:" Agenc ec_�Yary APPROVED AS TO FORM �o RUTAN,&.TUCKER; Agency C unsel 394/015610 -0048 268916.10 a04/26/02 EXHIBIT "A" LEGAL DESCRIPTION OF THE SITE [SEE FOLLOWING PAGES] 3941015610 -0048 268916.10 aM26102 LEGAL DESCRIPTION OF THE REAL PROPERTY THAT CERTAIN REAL PROPERTY SITUATED IN THE CITY OF LA QUINTA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, MORE PARTICULARLY DESCRIBED AS FOLLOWS: PARCEL A THAT PORTION OF THE SOUTH HALF OF THE SOUTH HALF OF SECTION 5, THE EAST HALF OF THE SOUTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 6, AND THE NORTH HALF OF THE NORTHEAST QUARTER OF SECTION 8, TOWNSHIP 6 SOUTH, RANGE 7 EAST, SAN BERNARDINO MERIDIAN, MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE INTERSECTION OF THE WEST LINE OF THE EAST HALF OF THE SOUTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SAID SECTION 6 WITH THE CENTERLINE OF AVENUE 52; THENCE ALONG SAID CENTERLINE, NORTH 89 °55'34" EAST, 633.19 FEET; THENCE LEAVING SAID CENTERLINE, SOUTH 0 °06'19" WEST, 55.00 FEET; THENCE PARALLEL TO AND 55.00 FEET SOUTHERLY OF SAID CENTERLINE THE FOLLOWING FOUR (4) COURSES: NORTH 89 055'34" EAST, 1075.47 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE SOUTHWESTERLY AND HAVING A RADIUS OF 1945.00 FEET; THENCE SOUTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 46 043'49" AND AN ARC DISTANCE OF 1586.34 FEET TO THE BEGINNING OF A REVERSE CURVE CONCAVE NORTHEASTERLY AND HAVING A RADIUS OF 2055.00 FEET, A RADIAL LINE THROUGH SAID POINT BEARS NORTH 46 039'23" EAST; THENCE SOUTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 46047'58" AND AN ARC DISTANCE OF 1678.53 FEET; THENCE PARALLEL TO AND 55.00 FEET SOUTH OF THE NORTH LINE OF THE NORTHEAST QUARTER OF THE NORTHEAST QUARTER OF SAID SECTION 8, ALSO BEING THE CENTERLINE OF AVENUE 52, NORTH 89 051'25" EAST, 859.04 FEET; THENCE NORTH 0 008'35" WEST, 3.00 FEET; THENCE PARALLEL TO AND 52.00 FEET SOUTH OF SAID NORTH LINE, NORTH 89 051'25" EAST, 155.06 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE SOUTHWESTERLY AND HAVING A RADIUS OF 291.00 FEET; THENCE SOUTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 15 009'25" AND AN ARC DISTANCE OF 76.98 FEET; THENCE PARALLEL TO AND 60.00 FEET SOUTH OF SAID CENTERLINE THE FOLLOWING FOUR (4) COURSES: SOUTH 89 051'25" WEST, 1081.86 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE NORTHEASTERLY AND HAVING A RADIUS OF 2060.00 FEET; THENCE NORTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 46 047'58" AND AN ARC DISTANCE OF 1682.62 FEET TO THE BEGINNING OF A REVERSE CURVE CONCAVE SOUTHWESTERLY AND HAVING A RADIUS OF 1940.00 FEET, A RADIAL LINE THROUGH SAID POINT BEARS SOUTH 46 039'23" WEST; THENCE 3941015610 -0048 2 268916.10.04/26 /02 NORTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 46 043'49" AND AN ARC DISTANCE OF 1582.26 FEET; THENCE SOUTH 89 °55'34" WEST, 1708.65 FEET TO A POINT ON THE WEST LINE OF THE EAST HALF OF THE SOUTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SAID SECTION 6; THENCE ALONG SAID WEST LINE, NORTH 0004'16" EAST, 60.00 FEET TO THE POINT OF BEGINNING. PARCEL A CONTAINS 1.506 ACRES, MORE OR LESS. PARCEL B THAT PORTION OF THE NORTH HALF OF THE NORTHEAST QUARTER OF SECTION 8, TOWNSHIP 6 SOUTH, RANGE 7 EAST, SAN BERNARDINO MERIDIAN, MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHEAST CORNER OF SAID SECTION 8; THENCE ALONG THE NORTH LINE OF SAID SECTION 8, ALSO BEING THE CENTERLINE OF AVENUE 52, SOUTH 8051'25" WEST, 60.04 FEET TO THE TRUE POINT OF BEGINNING; THENCE PARALLEL TO AND 60.00 FEET WESTERLY OF THE CENTERLINE OF JEFFERSON STREET, SOUTH 2 012'44" EAST, 235.55 FEET TO A POINT OF CUSP WITH A TANGENT CURVE CONCAVE SOUTHWESTERLY AND HAVING A RADIUS OF 171.00 FEET; THENCE NORTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 72 046'26" AND AN ARC DISTANCE OF 217.20 FEET; THENCE NORTH 74 °59'10" WEST, 55.07 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE SOUTHWESTERLY AND HAVING A RADIUS OF 291.00 FEET; THENCE NORTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 15 009'25" AND AN ARC DISTANCE OF 76.98 FEET; THENCE PARALLEL TO AND 52.00 FEET SOUTH OF THE CENTERLINE OF AVENUE 52, SOUTH 89 051'25" WEST, 155.06 FEET; THENCE SOUTH 0 °08'35" EAST, 3.00 FEET; THENCE PARALLEL TO AND 55.00 FEET SOUTH OF THE CENTERLINE OF AVENUE 52, SOUTH 89 °51'25" WEST, 859.04 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE NORTHEASTERLY AND HAVING A RADIUS OF 2055.00 FEET; THENCE NORTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 13 017'09" AND AN ARC DISTANCE OF 476.51 FEET TO A POINT ON THE NORTH LINE OF SAID SECTION 8, ALSO BEING THE CENTERLINE OF AVENUE 52; THENCE ALONG SAID NORTH LINE, NORTH 89 °51'25" EAST, 1733.26 FEET TO THE POINT OF BEGINNING. PARCEL B CONTAINS 2.173 ACRES, MORE OR LESS. 394/015610 -0048 3 268916.10 a04/26/02 PARCEL C THAT PORTION OF THE EAST HALF OF THE NORTHEAST QUARTER OF SECTION 8, AND THE WEST HALF OF THE WEST HALF OF SECTION 9, TOWNSHIP 6 SOUTH, RANGE 7 EAST, SAN BERNARDINO MERIDIAN, MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHEAST CORNER OF SAID SECTION 8; THENCE ALONG THE CENTERLINE OF JEFFERSON STREET, SOUTH 2 012'44" EAST, 5267.69 FEET TO THE NORTHEAST CORNER OF SECTION 17, TOWNSHIP 6 SOUTH, RANGE 7 EAST, SAN BERNARDINO MERIDIAN; THENCE ALONG THE SOUTH LINE OF SAID SECTION 9, ALSO BEING THE CENTERLINE OF AVENUE 54, SOUTH 89 °50'56" WEST, 65.04 FEET; THENCE PARALLEL TO AND 65.00 FEET WESTERLY OF THE CENTERLINE OF JEFFERSON STREET, NORTH 2 °12'44" WEST, 297.88 FEET; THENCE NORTH 1 °23'37" WEST, 350.04 FEET; THENCE PARALLEL TO AND 60.00 FEET WESTERLY OF THE CENTERLINE OF JEFFERSON STREET, NORTH 2 °12'44" WEST, 3166.69 FEET TO A POINT ON THE SOUTHERLY RIGHT OF WAY OF THE ALL AMERICAN CANAL; THENCE ALONG SAID SOUTHERLY RIGHT OF WAY, NORTH 89053'14" EAST, 30.02 FEET; THENCE PARALLEL TO AND 30.00 FEET WESTERLY OF THE CENTERLINE OF JEFFERSON STREET, NORTH 2 012'44" WEST, 130.09 FEET TO THE NORTHERLY RIGHT OF WAY OF THE ALL AMERICAN CANAL; THENCE ALONG SAID NORTHERLY RIGHT OF WAY, SOUTH 89 °53'14" WEST, 30.02 FEET; THENCE PARALLEL TO AND 60.00 FEET WESTERLY OF THE CENTERLINE OF JEFFERSON STREET, NORTH 2 012'44" WEST, 1322.87 FEET TO A POINT ON THE NORTH LINE OF SAID SECTION 8, ALSO BEING THE CENTERLINE OF AVENUE 52; THENCE ALONG SAID NORTH LINE, NORTH 89 051'25" EAST, 60.04 FEET TO THE POINT OF BEGINNING. PARCEL C CONTAINS 7.220 ACRES, MORE OR LESS. PARCEL D THAT PORTION OF THE SOUTH HALF OF THE SOUTH HALF OF SECTION 8, AND THE SOUTHWEST QUARTER. OF THE SOUTHWEST QUARTER OF SECTION 9, TOWNSHIP 6 SOUTH, RANGE 7 EAST, SAN BERNARDINO MERIDIAN, MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHEAST CORNER OF SECTION 17, TOWNSHIP 6 SOUTH, RANGE 7 EAST, SAN BERNARDINO MERIDIAN; THENCE ALONG THE SOUTH LINE OF SAID SECTION 9, SOUTH 89 °50'56" WEST, 65.04 FEET TO THE TRUE POINT OF BEGINNIN G; THENCE CONTINUING SOUTH 89 °50'56" WEST, 132.94 FEET TO THE SOUTHWEST CORNER OF SAID SECTION 9; THENCE ALONG THE SOUTH LINE OF THE SOUTHEAST QUARTER OF SAID SECTION 8, ALSO BEING THE CENTERLINE OF AVENUE 54, SOUTH 89 °59'23" WEST, 2647.64 FEET TO THE SOUTHWEST CORNER OF SAID SOUTHEAST QUARTER; THENCE ALONG THE SOUTH LINE OF THE SOUTHWEST QUARTER OF SAID SECTION, SOUTH 89 °33'59" WEST, 48.00 FEET TO THE BEGINNING OF A NON - TANGENT CURVE CONCAVE SOUTHEASTERLY AND HAVING A RADIUS OF 394/015610-0048 4 268916.10 a0426102 48.00 FEET, A RADIAL LINE THROUGH SAID POINT BEARS SOUTH 89 °33'59" WEST; THENCE LEAVING SAID SOUTH LINE, AND NORTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 105 027'16" AND AN ARC DISTANCE OF 88.35 FEET; THENCE SOUTH 74 058'44" EAST, 50.00 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE NORTHEASTERLY AND HAVING A RADIUS OF 100.00 FEET; THENCE SOUTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 15 000'38" AND AN ARC DISTANCE OF 26.20 FEET; THENCE PARALLEL TO AND 30.00 FEET NORTH OF THE SOUTH LINE OF THE SOUTHEAST QUARTER OF SAID SECTION 8, ALSO BEING THE CENTERLINE OF AVENUE 54, SOUTH 89 °59'23" EAST, 2514.64 FEET; THENCE NORTH 83 002'52" EAST, 151.56 FEET; THENCE NORTH 44 °58'49" EAST, 36.66 FEET; THENCE PARALLEL TO AND 65.00 FEET WEST OF THE CENTERLINE OF JEFFERSON STREET, SOUTH 2 °12'44" EAST, 74.00 FEET TO THE POINT OF BEGINNING. PARCEL D CONTAINS 2.024 ACRES, MORE OR LESS. PARCEL 2 THAT PORTION OF THE SOUTH HALF OF THE SOUTH HALF OF SECTION 5, THE EAST HALF OF THE SOUTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 6, THE EAST HALF OF THE NORTHEAST QUARTER OF THE NORTHEAST QUARTER OF SECTION 7, AND SECTION 8, TOWNSHIP 6 SOUTH, RANGE 7 EAST, SAN BERNARDINO MERIDIAN, MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE INTERSECTION OF THE WEST LINE OF THE EAST HALF OF THE SOUTHEAST QUARTER OF THE SOUTHEAST QUARTER OF SAID SECTION 6 WITH THE CENTERLINE OF AVENUE 52; THENCE ALONG SAID WEST LINE,, SOUTH 0 °04'16" WEST, 60.00 FEET TO THE TRUE POINT OF BEGINNING; THENCE PARALLEL TO AND 60.00 FEET SOUTH OF 'THE CENTERLINE OF AVENUE 52 THE FOLLOWING FOUR (4) COURSES: NORTH 89 055'34" EAST, 1708.65 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE SOUTHWESTERLY AND HAVING A RADIUS OF 1940.00 FEET; THENCE SOUTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 46 043'49" AND AN ARC DISTANCE OF 1582.26 FEET TO THE BEGINNING OF A REVERSE CURVE CONCAVE NORTHEASTERLY AND HAVING A RADIUS OF 2060.00 FEET, A RADIAL LINE THROUGH SAID POINT BEARS NORTH 46 039'23" EAST; THENCE SOUTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 46 047'58" AND AN ARC DISTANCE OF 1682.62 FEET; THENCE NORTH 89 °51'25" EAST, 767.06 FEET; THENCE SOUTH 41 015'00" EAST, 787.18 FEET; THENCE PARALLEL TO AND 60.00 FEET WESTERLY OF THE CENTERLINE OF JEFFERSON STREET, SOUTH 2 012'44" EAST, 669.32 FEET TO THE NORTHERLY RIGHT OF WAY OF THE ALL AMERICAN CANCEL; THENCE ALONG THE NORTHERLY AND WESTERLY RIGHT OF WAY OF THE ALL AMERICAN CANAL THE FOLLOWING SEVEN (7) COURSES: 3941015610 -0048 5 268916.10 a04126102 SOUTH 89 053'14" WEST, 2633.43 FEET; THENCE SOUTH 0 °00'06" EAST, 1320.62 FEET; THENCE SOUTH 89 055'03" WEST, 20.00 FEET; THENCE SOUTH 0 000'06" EAST, 420.29 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE NORTHEASTERLY AND HAVING A RADIUS OF 796.20 FEET; THENCE SOUTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 28 030'00" AND AN ARC DISTANCE OF 396.05 FEET; THENCE SOUTH 28 030'06" EAST, 74.10 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE SOUTHWESTERLY AND HAVING A RADIUS OF 636.20 FEET; THENCE SOUTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 11 °02'55" AND AN ARC DISTANCE OF 122.68 FEET; THENCE LEAVING SAID WESTERLY RIGHT OF WAY, NORTH 60 °30'00" WEST, 59.57 FEET; THENCE NORTH 74 000'00" WEST, 188.00 FEET; THENCE NORTH 35 010'00" WEST, 68.00 FEET; THENCE NORTH 40 °35'00" WEST, 111.50 FEET; THENCE NORTH 40 °50'00" West, 115.50 FEET; THENCE NORTH 75 °35'00" WEST, 93.50 FEET; THENCE NORTH 36 040'00" WEST, 162.50 FEET; THENCE NORTH 19 °35'00" EAST, 61.50 FEET; THENCE NORTH 36 000'00" WEST, 172.50 FEET; THENCE NORTH 45 °15'00" WEST, 214.00 FEET; THENCE NORTH 43 010'00" WEST, 173.00 FEET; THENCE NORTH 45 °25'00" WEST, 146.00 FEET; THENCE NORTH 13 055'00" WEST, 198.50 FEET; THENCE SOUTH 82 °00'00" WEST, 182.00 FEET; THENCE NORTH 58 °15'00" WEST, 187.50 FEET; THENCE NORTH 46 °00'00" WEST, 180.50 FEET; THENCE NORTH 31 °50'00" WEST, 108.00 FEET; THENCE NORTH 5 055'00" WEST, 209.00 FEET; THENCE NORTH 10 °20'00" EAST, 180.50 FEET; THENCE NORTH 4 040'00" EAST, 111.00 FEET; THENCE NORTH 2 °40'00" WEST, 88.50 FEET; THENCE NORTH 14 000'00" WEST, 202.00 FEET; THENCE NORTH 64 040'00" WEST, 186.00 FEET; THENCE NORTH 67 °50'00" WEST, 187.00 FEET; THENCE SOUTH 76 °55'00" WEST, 124.00 FEET; THENCE SOUTH 37 °10'00" WEST, 122.00 FEET; THENCE SOUTH 88 °20'00" WEST, 75.50 FEET; THENCE NORTH 88 °20'00" WEST, 75.00 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE NORTHEASTERLY AND HAVING A RADIUS OF 70.00 FEET; THENCE NORTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 72 025'00" AND AN ARC DISTANCE OF 88.47 FEET; THENCE NORTH 63 025'00" WEST, 59.00 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE NORTHEASTERLY AND HAVING A RADIUS OF 135.00 FEET; THENCE NORTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 77 030'00" AND AN ARC DISTANCE OF 182.61 FEET TO THE BEGINNING OF A REVERSE CURVE CONCAVE SOUTHWESTERLY AND HAVING A RADIUS OF 47.00 FEET, A RADIAL LINE THROUGH SAID POINT BEARS NORTH 75 050'00" WEST; THENCE NORTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 105 045'00" AND AN ARC DISTANCE OF 86.75 FEET; THENCE SOUTH 88 020'00" WEST, 75.50 FEET; THENCE NORTH 72 °20'00" WEST, 64.00 FEET; THENCE SOUTH 89 050'00" WEST, 88.50 FEET; THENCE NORTH 48 °10'00" WEST, 89.50 FEET; THENCE NORTH 38 °35'00" WEST, 230.50 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE SOUTHEASTERLY AND HAVING A RADIUS OF 90.00 FEET; THENCE NORTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 97 045'00" AND AN ARC DISTANCE OF 153.55 FEET; THENCE NORTH 8 °05'00" EAST, 116.00 FEET; THENCE NORTH 7 005'00" WEST, 293.00 FEET; THENCE NORTH 45 °45'00" WEST, 143.00 FEET; THENCE NORTH 53 025'00" WEST, 284.00 FEET TO A POINT ON THE WEST LINE OF THE EAST HALF OF THE SOUTHEAST QUARTER OF THE SOUTHEAST 3941015610 -0048 6 268916.10 a04126102 QUARTER SAID SECTION 6; THENCE ALONG SAID WEST LINE, NORTH 0 004'16" EAST, 1068.43 FEET TO THE POINT OF BEGINNING. PARCEL 2 CONTAINS 292.135 ACRES, MORE OR LESS. PARCEL 3 THAT PORTION OF THE SOUTH HALF OF THE NORTHEAST QUARTER, THE SOUTHEAST QUARTER, AND THE SOUTHEAST QUARTER OF THE SOUTHWEST QUARTER, OF SECTION 8; AND THE WEST HALF OF THE WEST HALF OF SECTION 9; TOWNSHIP 6 SOUTH, RANGE 7 EAST, SAN BERNARDINO MERIDIAN, MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHEAST CORNER OF SECTION 17, TOWNSHIP 6 SOUTH, RANGE 7 EAST, SAN BERNARDINO MERIDIAN; THENCE ALONG THE SOUTH LINE OF SAID SECTION 9, SOUTH 89 °50'56" WEST, 65.04 FEET; THENCE PARALLEL TO AND 65.00 FEET WESTERLY OF THE CENTERLINE OF JEFFERSON STREET, NORTH 2 012'44" WEST, 74.00 FEET TO THE TRUE POINT OF BEGINNING; THENCE SOUTH 44 °58'49" WEST, 36.66 FEET; THENCE SOUTH 83 °02'52" WEST, 151.65 FEET; THENCE PARALLEL TO AND 30.00 FEET NORTH OF THE SOUTH LINE OF THE SOUTHEAST QUARTER OF SAID SECTION 8, ALSO BEING THE CENTERLINE OF AVENUE 54, SOUTH 89 °59'23" WEST, 2514.64 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE NORTHEASTERLY AND HAVING A RADIUS OF 100.00 FEET; THENCE NORTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 15 000'38" AND AN ARC DISTANCE OF 26.20 FEET; THENCE NORTH 74 °58'44" WEST, 50.00 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE SOUTHEASTERLY AND HAVING A RADIUS OF 48.00 FEET; THENCE SOUTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 105 027'16" AND AN ARC DISTANCE OF 88.35 FEET TO A POINT ON THE SOUTH LINE OF THE SOUTHWEST QUARTER OF SAID SECTION 8; THENCE ALONG SAID SOUTH LINE, SOUTH 89 °33'59" WEST, 414.84 FEET TO A POINT ON THE EASTERLY RIGHT OF WAY LINE OF THE ALL AMERICAN CANCEL, SAID POINT ALSO BEING THE BEGINNING OF A NON - TANGENT CURVE CONCAVE SOUTHEASTERLY AND HAVING A RADIUS OF 1372.40 FEET, A RADIAL LINE THROUGH SAID POINT BEARS NORTH 56 056'06" WEST; THENCE ALONG THE EASTERLY AND SOUTHERLY RIGHT OF WAY OF THE ALL AMERICAN CANAL, THE FOLLOWING TWELVE (12) COURSES: NORTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 1 034'00" AND AN ARC DISTANCE OF 37.53 FEET; THENCE NORTH 34 °37'54" EAST, 814.10 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE NORTHWESTERLY AND HAVING A RADIUS OF 1492.40 FEET; THENCE NORTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 6 024'00" AND AN ARC DISTANCE OF 166.70 FEET; THENCE NORTH 28 013'54" EAST, 272.60 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE WESTERLY AND HAVING A RADIUS OF 776.20 FEET; THENCE NORTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 56 044'00" AND AN ARC DISTANCE OF 768.58 FEET; THENCE NORTH 28 °30'06" WEST, 74.10 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE NORTHEASTERLY AND HAVING A 7941015610 -0048 7 268916.10 a04126IO2 RADIUS OF 656.20 FEET; THENCE NORTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 28 030'00" AND AN ARC DISTANCE OF 326.41 FEET; THENCE NORTH 0 000'06" WEST, 420.48 FEET; THENCE SOUTH 89 °55'03" WEST, 10.00 FEET; THENCE NORTH 0 000'06" WEST, 954.66 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE SOUTHEASTERLY AND HAVING A RADIUS OF 236.48 FEET; THENCE NORTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 89 053'20" AND AN ARC DISTANCE OF 371.00 FEET; THENCE NORTH 89 °53'14" EAST, 2292.43 FEET; THENCE PARALLEL TO AND 60.00 FEET WESTERLY OF THE CENTERLINE OF JEFFERSON STREET, SOUTH 2 012'44" EAST, 3166.69 FEET; THENCE SOUTH 1 °23'37" EAST, 350.04 FEET; THENCE PARALLEL TO AND 65.00 FEET WEST OF THE CENTERLINE OF JEFFERSON STREET, SOUTH 2 012'44" EAST, 223.88 FEET TO THE POINT OF BEGINNING. PARCEL 3 CONTAINS 226.610 ACRES, MORE OR LESS. PARCEL4 THAT PORTION OF THE NORTHEAST QUARTER OF THE NORTHEAST QUARTER OF SECTION 8, TOWNSHIP 6 SOUTH, RANGE 7 EAST, SAN BERNARDINO MERIDIAN, MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHEAST CORNER OF SAID SECTION 8; THENCE ALONG THE NORTH LINE OF SAID SECTION 8, ALSO BEING THE CENTERLINE OF AVENUE 52, SOUTH 89 051'25" WEST, 60.04 FEET; THENCE PARALLEL TO AND 60.00 FEET WESTERLY OF THE CENTERLINE OF JEFFERSON STREET, SOUTH 2 012'44" EAST, 235.55 FEET TO THE TRUE POINT OF BEGINNING; THENCE CONTINUING SOUTH 2 012'44" EAST, 418.00 FEET; THENCE NORTH 41 °15'00" WEST, 787.18 FEET; THENCE PARALLEL TO AND 60.00 FEET SOUTH OF THE CENTERLINE OF AVENUE 52, NORTH 89 051'25" EAST, 314.80 FEET TO THE BEGINNING OF A NON - TANGENT CURVE CONCAVE SOUTHWESTERLY AND HAVING A RADIUS OF 291.00 FEET, A RADIAL LINE THROUGH SAID POINT BEARS NORTH 13 °19'22" EAST; THENCE SOUTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 1 041'28" AND AN ARC DISTANCE OF 8.59 FEET; THENCE SOUTH 74 °59'10" EAST, 55.07 FEET TO THE BEGINNING OF TANGENT CURVE CONCAVE SOUTHWESTERLY AND HAVING A RADIUS OF 171.00 FEET; THENCE SOUTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 72 046'26" AND AN ARC DISTANCE OF 217.20 FEET TO THE POINT OF BEGINNING. PARCEL 4 CONTAINS 3.207 ACRES, MORE OR LESS. 394/015610.0048 8 268916.10 a04/26/02 EXHIBIT "B" FORM OF ADDENDUM [SEE FOLLOWING PAGES] 394/015610 -0048 268916.10 a04/26/02 ADDENDUM TO ADDITIONAL AGREEMENT THIS ADDENDUM TO ADDITIONAL AGREEMENT ( "Addendum ") is made and entered into this _ day of 2002, by and among LA QUINTA REDEVELOPMENT AGENCY, a public body, corporate and politic ( "Agency "), KSL LAND HOLDINGS, INC., a Delaware corporation ( "KSL "), and KSL DESERT RESORTS, INC., a Delaware corporation ( "Desert Resorts "). A. Agency, KSL, and Desert Resorts entered into that certain Additional Agreement, with the Reference Date of 2002. B. Pursuant to Section 2 of the Additional Agreement, any of the parties may cause the execution of this Addendum to confirm the date of recordation of the Grant Deed as referred to therein. C. The parties hereby confirm that the date of recordation of the Grant Deed as referred to in Section 2 of the Additional Agreement is 2002. D. This Addendum may be executed in counterparts, each of which, when all parties hereto have signed this Addendum, shall constitute an original. [end — signature page follows] 794/015610 -0048 268916.10 a04/26/02