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2005 The Centre at LQ - Escrow DocsYEAR CALIFORNIA FORM 2oo5 Real Estate Withholding Certificate 593-C Part I Seller's Information Return this form to your escrow company. Name (including spouse, if jointly owned - see instructions - type or print) CitV of La Quinta SSN, FEIN or CA Corporation no. Address (number and street) 78-495 Calle Tam ico Private Mailbox no. Souse's SSN if'ointl owned City State ZIP Code L Note: If you do not furnish your tax ID number this certificate is void. Property address (if no street address, provide parcel number and county) Ownership Percentage Read the following and check the appropriate box. (See line -by-line notes in the instructions.) Part II - Certifications which fully exempt the sale from withholding: YES NO 1. Does the property qualify as the seller's (or decedent's, if being sold by the decedent's estate) principal residence within the ❑ meaning of Internal Revenue Code (IRC) Section 121? .................. 2 Did the seller (or decedent, if being sold by the decedent's estate) last use the property as the seller's (decedent's) principal Elresidence Rk within the meaning of IRC Section 121 without regard to the two-year time period? .............................. 3. Will the seller have a loss or zero gain for California income tax purposes on this sale? (To check "YES", you must complete Form 593-L, Real Estate Withholding - Computation of Estimated Gain or Loss, and have a loss or zero gain on line 16.) ....... 4. Is the property being compulsorily or involuntarily converted and does the seller intend to acquire property that is similar or related in service or use to qualify for nonrecognition of gain for California income tax purposes under IRC Section 1033?....... El 5. Will the transfer qualify for nonrecognition treatment under IRC Section 351 (transfer to a corporation controlled by the transferor) or IRC Section 721 (contribution to a partnership in exchange for a partnership interest)? ......................... 6. Is the seller a corporation (or an LLC classified as a corporation for federal and California income tax purposes) that is either qualified through the California Secretary of State or has a permanent place of Business in California? ...................... 7. Is the seller a partnership (or an LLC that is not a disregarded single member LLC and is classified as a partnership for federal and California income tax purposes) with recorded title to the property in the name of the partnership or LLC? ❑ (If yes, the partnership or LLC must withhold on nonresident partners or members as required.) ............................. �J 8. Is the seller a tax-exempt entity under either California or federal law? .................................................. 9. Is the seller an insurance company, individual retirement account, qualified pension/profit sharing plan, or charitable remainder trust?................................................................................................. ❑ Part III - Certifications that may partially or fully exempt the sale from withholding: Escrow Officer: See instructions for amounts to withhold. 10. Will the transfer qualify as a simultaneous like -kind exchange within the meaning of IRC Section 1031? ..................... 11. Will the transfer qualify as a deferred like -kind exchange within the meaning of IRC Section 1031? ........................ ❑ P9 12. Will the transfer of this property be an installment sale that you will report as such for California tax purposes and has the ❑ V) buyer agreed to withhold on each principal payment instead of withholding the full amount at the time of transfer?........ . run I V — JCIICI s Z11 nulurr Under penalties of perjury, I hereby certify that the information provided above is, to the best of my knowledge, true and correct. If conditions change, I will promptly inform the withholding agent. I understand that completing t is arm does not exempt me from filing a California income or franchise tax return to report this sale. Seller's Name and TitleC i t y of La Qu i n t a SelleF's Signature Date la- 2 5- 0 5 Spouse's Name Redevelopment AgenCspouse'ssignaturlhomas P. Genovese, Executive Seller: If you checked "YES" to any question in Part II, you are exempt from real estate withholding. If you checked "YES" to any question in Part III, you may qualify for a partial or complete withholding exemption. If you checked "NO" to all of the questions -in Part II and Part III, the withholding will be 3 1 /3 percent of the total sales price. If you are withheld upon, the withholding agent should give you two copies of Form 593-B, Real Estate Withholding Tax Statement. Attach one copy to the lower front of your California income tax return and keep the other copy for your records. For Privacy Act Notice, get form FTB 1131 (Individuals only). 593CO41 O3 Form 593-C C2 2004 irectoi A r a a N O a U W W U W ' A0 0 O p J Q in > Z d'o-- Lnw co V]M E ( A JE1 Sanctity of Contract STEWART TITLE OF CALIFORNIA, INC., INLAND EMPIRE DIVISION 3403 TENTH STREET, SUITE 400 RIVERSIDE, CA 92501 (951) 276-2700 www.stsales.com MEMBER CALIFORNIA LAND TITLE ASSOCIATION PRELIMINARY REPORT STEWART TITLE ESCROW 78-900 AVENUE 47 SUITE 112 LA QUINTA, CA 92253 Attention: Rhonda K. Oliver /Phone: (760)771-4645 Order Number: 512290473 Your Reference: 80129266-KW Property Address: SOUTHWEST VACANT HWY 111 AND DUANE PALMS, LA QUINTA, CA In response to the above referenced application for a Policy of Title Insurance, Stewart Title of California, Inc. hereby reports that it is prepared to issue, or cause to be issued, as of the date hereof, a Policy or Policies of Title Insurance describing the land and the estate or interest therein hereinafter set forth, insuring against loss which may be sustained by reason of any defect, lien or encumbrance not shown or referenced to as an Exception on Schedule B or not excluded from coverage pursuant to the printed Schedules, Conditions, and Stipulations of said Policy forms. The printed exceptions and exclusions from the coverage of said policy or policies are set forth in the attached list. Copies of the policy forms should be read. They are available from the office which issued this report. Please read the exceptions shown or referred to below and the exceptions and exclusions set forth in Exhibit A of this report carefully. The exceptions and exclusions are meant to provide you with notice of matters which are not covered under the terms of the title insurance policy and should be carefully considered. It is important to note that this preliminary report is not a written representation as to the condition of title and may not list all liens, defects, and encumbrances affecting title to the land. This report, (and any supplements or amendments thereto) is issued solely for the purpose of facilitating the issuance of a policy of title insurance and no liability is assumed hereby. If it is desired that liability be assumed prior to the issuance of a policy of title insurance a binder or commitment should be requested. Dated as of September 12, 2005 at 7:30 A.M. Print date: September 20, 2005 1st Amendment Updated REBECCA L. TANNER, Title Officer (800)637-2769 Fax: (951) 346-3318 512290473 PRELIMINARY REPORT The form of Policy of Title Insurance contemplated by this report is: California Land Title Association Standard Coverage Policy American Land Title Association Loan Policy SCHEDULE A The estate or interest in the land hereinafter described or referred to covered by this report is: A FEE AS TO PARCEL A AN EASEMENT AS TO PARCEL B Title to said estate or interest at the date hereof is vested in: LA QUINTA REVELOPMENT AGENCY, A PUBLIC BODY, CORPORATE AND POLITIC Continued on next page -1- 512290473 LEGAL DESCRIPTION The land referred to herein is situated in the State of California, County of Riverside, City of LA QUINTA, described as follows: PARCEL A: PARCEL 1 OF PARCEL MAP 33588, AS SHOWN BY MAP ON FILE IN BOOK 214 PAGE(S) 24 THROUGH 27, INCLUSIVE, OF PARCEL MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. PORTION OF APN. 649-030-034-5 PARCEL B: A NON-EXCLUSIVE EASEMENT FOR ACCESS OVER, UPON AND ACROWW THAT CERTAIN STRIP OF PROPERTY DESCRIBED AS FOLLOWS: THAT PORTION OF PARCELS 2 AND 3 OF PARCEL MAP 33588, AS SHOWN BY MAP ON FILE IN BOOK 214 PAGE(S) 24 THROUGH 27, INCLUSIVE, OF PARCEL MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA AS DESCRIBED IN GRANT OF EASEMENT RECORDED AUGUST 30, 2005 AS INSTRUMENT NUMBER 2005-0714042 OF OFFICIAL RECORDS, MORE PARTICULARLY DESCRIBED AS FOLLOWS: THAT PORTION OF THE EAST HALF OF THE SOUTHWEST QUARTER OF SECTION 29, TOWNSHIP 5 SOUTH, RANGE 7 EAST, SAN BERNARDINO MERIDIAN DESCRIBED AS FOLLOWS: BEGINNING AT THE CENTER OF SAID SECTION 29; THENCE SOUTH 89°36'07" WEST, 330.00 FEET TO A POINT ON A NORTHERLY PROLONGATION OF THE EAST LINE OF THE LAND INCLUDED WITHIN PARCEL MAP NO. 30420 RECORDED IN BOOK 202, PAGES 40 THROUGH 44, JULY 8TH 2O02; THENCE ALONG SAID LINE, SOUTH 00°13'48" EAST, 428.87 FEET; THENCE LEAVING SAID EAST LINE, NORTH 90000'00" EAST 9.39 FEET TO THE TRUE POINT OF BEGINNING; THENCE NORTH 90000100" EAST, 30.00 FEET; THENCE SOUTH 00000'00" EAST, 224.69 FEET; THENCE NORTH 80°00'00" EAST, 118.54 FEET; THENCE SOUTH 89059'50" EAST, 111.68 FEET TO A POINT ON THE WESTERLY RIGHT-OF-WAY LINE OF DUNE PALMS ROAD; THENCE ALONG SAID WESTERLY RIGHT-OF-WAY LINE OF DUNE PALMS ROAD, SOUTH 00013141" EAST, 36.00 FEET; THENCE LEAVING SAID WESTERLY RIGHT-OF-WAY LINE OF DUNE PALMS ROAD, NORTH 90°00'00" WEST, 108.67 FEET; THENCE SOUTH 80000'00" EAST, 152.20 FEET; THENCE NORTH 00000'00" WEST, 266.53 FEET TO THE TRUE POINT OF BEGINNING. PORTION OF APN 649-030-034-5 End of Legal Description Continued on next page -2- 512290473 SCHEDULE B At the date hereof, exceptions to coverage in addition to the printed exceptions and exclusions contained in said policy or policies would be as follows: A. GENERAL AND SPECIAL CITY AND/OR COUNTY TAXES FOR THE FISCAL YEAR 2005-2006, A LIEN NOT YET DUE AND PAYABLE. B.GENERAL AND SPECIAL CITY AND/OR COUNTY TAXES FOR THE FISCAL YEAR 2004-2005: TOTAL AMOUNT: $2,453.52 FIRST INSTALLMENT: $1,226.76 PAID SECOND INSTALLMENT: $1,226.76 PAID CODE AND PARCEL NO: 020011/649-030-034-5 EXEMPTION: NONE AFFECTS THIS AND OTHER PROPERTY. C. THE LIEN OF SUPPLEMENTAL TAXES, IF ANY, ASSESSED PURSUANT TO THE PROVISIONS OF CHAPTER 3.5, COMMENCING WITH SECTION 75 OF REVENUE AND TAXATION CODE OF THE STATE OF CALIFORNIA. D. ASSESSMENTS, IF ANY, FOR COMMUNITY FACILITY DISTRICTS AFFECTING SAID LAND WHICH MAY EXIST BY VIRTUE OF ASSESSMENT MAPS OR NOTICES FILED BY SAID DISTRICTS. SAID ASSESSMENTS ARE COLLECTED WITH THE COUNTY TAXES. E. A RESOLUTION ESTABLISHING WATERSHED BENEFIT ASSESSMENT AREAS WHICH PROVIDES FOR THE ISSUING OF BONDS AND THE LEVYING OF A SPECIAL TAX TO PAY THE INTEREST AND PRINCIPAL PAYMENTS ON SUCH BONDS UPON THE HEREIN DESCRIBED PROPERTY, RECORDED JUNE 10, 1991 AS INSTRUMENT NOS. 193749, 193750 AND 193751 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. REFERENCE IS HEREBY MADE TO SAID DOCUMENT FOR FURTHER AND OTHER PARTICULARS. THE INSTALLMENTS THEREUNDER BEING PAYABLE ANNUALLY WITH THE REAL PROPERTY TAXES. 1. WATER RIGHTS, CLAIMS OR TITLE TO WATER, WHETHER OR NOT SHOWN BY THE PUBLIC RECORDS. 2. RIGHTS OF THE PUBLIC IN AND TO ANY PORTION OF SAID LAND, LYING WITHIN ANY LAWFUL ESTABLISHED STREETS, ROADS, OR HIGHWAYS. Continued on next page -3- F f 512290473 3. A RIGHT OF WAY AND EASEMENT OF THE COACHELLA VALLEY COUNTY WATER DISTRICT, IN FAVOR OF THE PUBLIC FOR ALL PUBLIC ROADS AND RIGHTS OF WAY HERETOFORE DEDICATED, ACQUIRED, RESERVED OR ACCEPTED FOR PUBLIC USE, AND ALSO ANY AND ALL PRIVATE EASEMENTS AND RIGHTS OF WAY FOR ROADS, PIPELINES, DITCHES AND CONDUITS ON, OVER, UNDER OR ACROSS THE HEREIN DESCRIBED PROPERTY, EXISTING FOR THE PURPOSE OF INGRESS AND EGRESS FROM OTHER LANDS BY MEANS OF SUCH ROADS AND FOR THE PURPOSE OF CONVEYING IRRIGATING AND DOMESTIC WATER TO SUCH OTHER LANDS BY MEANS OF SUCH PIPELINES, DITCHES AND CONDUITS. SAID EASEMENT IS BLANKET IN NATURE. 4. AN EASEMENT FOR IRRIGATION, DRAINAGE AND STORM -WATER PROTECTION WORKS AND CANALS, LATERAL, AND APPURTENANT WORKS AND INCIDENTAL PURPOSES, RECORDED APRIL 17, 1940 IN BOOK 458 PAGE 373 AS INSTRUMENT NO. 1634 OF OFFICIAL RECORDS. BY RESOLUTION RECORDED DECEMBER 27, 1944 IN BOOK 658 PAGE 175 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA, THE COACHELLA VALLEY COUNTY WATER DISTRICT SELECTED A RIGHT OF WAY OVER AND ACROSS THE NORTH 100 FEET AND THE EAST 70 FEET OF PARCEL 1 HEREIN DESCRIBED, EXCEPTING THE HIGHHWAY TO CONSTRUCT, RECONSTRUCT, REPAIR, REPLACE, ENLARGE, DIMINISH, USE, OPERATE AND MAINTAIN ANY IRRIGATION, DRAINAGE AND STORM -WATER PROTECTION WORKS AND CANALS, LATERALS AND APPURTENANT WORKS AND STRUCTURES AS MAY BE NECESSARY OR CONVENIENT FOR DISTRICT PURPOSES. 5. THE EFFECT OF A RECORD OF SURVEY ON FILE IN BOOK 14 PAGE 43, OF RECORDS OF SURVEY, WHICH PURPORTS TO SHOW THE HEREIN DESCRIBED PROPERTY. 6. AN EASEMENT FOR HIGHWAY SLOPE PURPOSES, AND INCIDENTAL PURPOSES, IN FAVOR OF THE STATE OF CALIFORNIA, IN INSTRUMENT RECORDED NOVEMBER 7, 1967 AS INSTRUMENT NO. 97902 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. 7. A WAIVER IN FAVOR OF THE STATE OF CALIFORNIA OF ANY CLAIM FOR DAMAGES TO SAID LAND BY REASON OF THE LOCATION, CONSTRUCTION, LANDSCAPING OR MAINTENANCE OF THE STATE HIGHWAY OR FREEWAY CONTIGUOUS THERETO, AS CONTAINED IN THE DEED RECORDED NOVEMBER 7, 1967 AS INSTRUMENT NO. 97902 OF OFFICIAL RECORDS. 8. AN EASEMENT FOR ROAD, AND INCIDENTAL PURPOSES, IN FAVOR OF THE CITY OF LA QUINTA IN INSTRUMENT RECORDED JUNE 12, 1996 AS INSTRUMENT NO. 216515 OF OFFICIAL RECORDS. 9. ANY RIGHTS, INTERESTS OR CLAIMS WHICH MAY EXIST OR ARISE BY REASON OF MATTERS AFFECTING THE HEREIN DESCRIBED PROPERTY AS SHOWN ON THAT CERTAIN A.L.T.A. SURVEY DATED JANUARY 20, 2005, PREPARED BY NASLAND ENGINEERING,UNDER SURVEY NO. 304-018.1, Continued on next page -4- r r 512290473 WHICH WAS A SURVEY ON ADJACENT PROPERTY, DESCRIBED AS FOLLOWS: A: TEMPORARY POWER ON NORTH LINE 10. OWNER'S CERTIFICATE ON THE MAP OF SAID TRACT RECITES IN PART: WE HEREBY DEDICATE TO THE CITY OF LA QUINTA AN EASEMENT TWENTY (20) FEET IN WIDTH ALONG DUNE PALMS STREET FOR LANDSCAPE AND PUBLIC UTILITY PURPOSES. 11. THE REQUIREMENT THAT THIS COMPANY BE FURNISHED WITH: A. A COPY OF THE BY-LAWS OF STAMKO DEVELOPMENT B. A COPY (CERTIFIED BY THE SECRETARY) OF THE RESOLUTION TO CONVEY/ENCUMBER SAID PROPERTY. C. THE NAMES AND POSITIONS OF THOSE PERSONS AUTHORIZED TO EXECUTE DOCUMENTS TO CONVEY SAID PROPERTY. D. A CERTIFICATE OF GOOD STANDING FROM THE SECRETARY OF STATE. 12. THE REQUIREMENT THAT THIS COMPANY BE FURNISHED WITH A RESOLUTION OF STAMKO DEVELOPMENT CORPORATION, AUTHORIZING THE CONTEMPLATED TRANSACTION BE SUBMITTED FOR EXAMINATION AND APPROVAL. 13. THE REQUIREMENT THAT WE BE FURNISHED WITH A COMPLETE COPY OF THE PARTNERSHIP AGREEMENT OF STAMKO DEVELOPMENT, ANY AND ALL AMENDMENTS OR MODIFICATIONS THEREOF, PRIOR TO THE CLOSE OF THIS TRANSACTION. 14. DELETED 15. DELETED 16. DELETED 17. ANY EASEMENT OR LESSER RIGHT, AFFECTING THE PORTION OF SAID LAND, FOR SHED AND CONCRETE PUMP, INCLUDING INCIDENTAL PURPOSES, DISCLOSED BY A SURVEY OR INSPECTION OF SAID LAND, AFFECTING THE NORTHWEST CORNER OF PARCEL A. 18. COVENANTS, CONDITIONS AND RESTRICTIONS AS CONTAINED IN INSTRUMENT RECORDED MAY 5, 1999 AS INSTRUMENT NO. 1999-192401 OF OFFICIAL RECORDS, WHICH PROVIDE AMONG OTHER THINGS, THAT A VIOLATION THEREOF SHALL NOT DEFEAT OR RENDER INVALID THE LIEN OF ANY MORTGAGE OR DEED OF TRUST MADE IN GOOD FAITH AND FOR VALUE. OMITTING ANY COVENANT OR RESTRICTION BASED ON RACE, COLOR, Continued on next page -5- A I 512290473 RELIGION, SEX, HANDICAP, FAMILIAL STATUS OR NATIONAL ORIGIN UNLESS AND ONLY TO THE EXTENT THAT THE COVENANT (A) IS EXEMPT UNDER CHAPTER 42, SECTION 3607 OF THE UNITED STATES CODE, OR (B) RELATES TO HANDICAP BUT DOES NOT DISCRIMINATE AGAINST HANDICAPPED PERSONS. SAID COVENANTS, CONDITIONS AND RESTRICTIONS WERE MODIFIED BY INSTRUMENT(S) RECORDED SEPTEMBER 12, 2002 AS INSTRUMENT NO. 2002-507495, AUGUST 30, 2005 AS INSTRUMENT NO. 2005-0714039 OF OFFICIAL RECORDS. AFFECTS PARCEL B 19. THE MATTERS CONTAINED IN AN INSTRUMENT ENTITLED OPTION AGREEMENT, DATED JUNE 15, 2005 BY AND BETWEEN SAM'S REAL ESTATE BUSINESS TRUST, A DELAWARE STATUTORY TRUST AND LA QUINTA REDEVELOPMENT AGENCY, A PUBLIC BODY, CORPORATE AND POLITIC, UPON THE TERMS AND CONDITIONS AND COVENANTS THEREIN PROVIDED, RECORDED AUGUST 30, 2005 AS INSTRUMENT NO. 2005-0714040 OF OFFICIAL RECORDS. REFERENCE IS MADE TO SAID INSTRUMENT FOR PARTICULARS. AFFECTS PARCEL B 20. THE MATTERS CONTAINED IN AN INSTRUMENT ENTITLED OPTION AGREEMENT, DATED JUNE 15, 2005 BY AND BETWEEN SAM'S REAL ESTATE BUSINESS TRUST, A DELAWARE STATUTORY TRUST AND STAMKO DEVELOPMENT CO., A CALIFORNIA LIMITED PARTNERSHIP, UPON THE TERMS AND CONDITIONS AND COVENANTS THEREIN PROVIDED, RECORDED AUGUST 30, 2005 AS INSTRUMENT NO. 2005-0714041 OF OFFICIAL RECORDS. REFERENCE IS MADE TO SAID INSTRUMENT FOR PARTICULARS. AFFECTS PARCEL B END OF EXCEPTIONS Typist Initials: BLT Print date: September 20, 2005 Continued on next page -6- f f 512290473 NOTES A. SHORT TERM RATE 2. ACCORDING TO THE PUBLIC RECORDS, THERE HAVE BEEN NO DEEDS CONVEYING THE PROPERTY HEREIN DESCRIBED IN THIS REPORT WITHIN A PERIOD OF 24-MONTHS PRIOR TO THE DATE OF THIS REPORT, EXCEPT AS FOLLOWS: A GRANT DEED, FROM SHIRLEY A HAMMER ETAL, GRANTOR, TO LA QUINTA REDEVELOPMENT AGENCY, GRANTEE, RECORDED JUNE 30, 2004 AS INSTRUMENT NO. 2004-0507887, OF OFFICIAL RECORDS. AFFECTS PARCEL A Continued on next page -7- 512290473 CALIFORNIA "GOOD FUNDS" LAW California Insurance Code Section 12413.1 regulates the disbursement of escrow and sub -escrow funds by title companies. The law requires that funds be deposited in the title company escrow account and available prior to disbursement. Funds received by Stewart Title of California, Inc. (Stewart Title) via wire transfer may be disbursed upon receipt. Funds received via cashier's checks or teller checks drawn on a California Bank may be disbursed on the next business day after the day of deposit. If funds are received by any other means, recording and/or disbursement may be delayed, and you should contact your title or escrow officer. All escrow and sub -escrow funds received will be deposited with other escrow funds in one or more non -interest bearing escrow accounts in a financial institution selected by Stewart Title. Stewart Title may recieve certain direct or indirect benefits from the financial institution by reason of the deposit of such funds or the maintenance of such accounts with the financial institution, and Stewart Title shall have no obligation to account to the depositing party in any manner for the value of, or pay to such party, any benefit received by Stewart Title. Such benefits shall be deemed additional compensation to Stewart Title for its services in connection with the escrow or sub -escrow. WIRING INSTRUCTIONS IF YOU ANTICIPATE HAVING FUNDS WIRED TO STEWART TITLE OF CALIFORNIA, INLAND EMPIRE DIVISION, OUR WIRING INFORMATION IS AS FOLLOWS: UNION BANK OF CALIFORNIA LOS ANGELES, CA ABA 122000496 ACCOUNT #9120050750 ACCOUNT NAME: STEWART TITLE OF CALIFORNIA, INLAND EMPIRE DIVISION SUB -ESCROW TRUST ACCOUNT REF: 512290473** ** WHEN INSTRUCTING THE FINANCIAL INSTITUTION TO WIRE FUNDS, IT IS VERY IMPORTANT THAT YOU REFERENCE STEWART TITLE'S ORDER NUMBER. ** SHOULD YOU HAVE ANY QUESTIONS IN THIS REGARD, PLEASE CONTACT YOUR TITLE OFFICER IMMEDIATELY. -8- r EXHIBIT "A" LEGAL DESCRIPTION 512290473 The land referred to herein is situated in the State of California, County of Riverside, City of LA QUINTA, described as follows: PARCEL A: PARCEL 1 OF PARCEL MAP 33588, AS SHOWN BY MAP ON FILE IN BOOK 214 PAGE(S) 24 THROUGH 27, INCLUSIVE, OF PARCEL MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. PORTION OF APN. 649-030-034-5 PARCEL B: A NON-EXCLUSIVE EASEMENT FOR ACCESS OVER, UPON AND ACROWW THAT CERTAIN STRIP OF PROPERTY DESCRIBED AS FOLLOWS: THAT PORTION OF PARCELS 2 AND 3 OF PARCEL MAP 33588, AS SHOWN BY MAP ON FILE IN BOOK 214 PAGE(S) 24 THROUGH 27, INCLUSIVE, OF PARCEL MAPS, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA AS DESCRIBED IN GRANT OF EASEMENT RECORDED AUGUST 30, 2005 AS INSTRUMENT NUMBER 2005-0714042 OF OFFICIAL RECORDS, MORE PARTICULARLY DESCRIBED AS FOLLOWS: THAT PORTION OF THE EAST HALF OF THE SOUTHWEST QUARTER OF SECTION 29, TOWNSHIP 5 SOUTH, RANGE 7 EAST, SAN BERNARDINO MERIDIAN DESCRIBED AS FOLLOWS: BEGINNING AT THE CENTER OF SAID SECTION 29; THENCE SOUTH 89036'07" WEST, 330.00 FEET TO A POINT ON A NORTHERLY PROLONGATION OF THE EAST LINE OF THE LAND INCLUDED WITHIN PARCEL MAP NO. 30420 RECORDED IN BOOK 202, PAGES 40 THROUGH 44, JULY 8TH 2O02; THENCE ALONG SAID LINE, SOUTH 00013'48" EAST, 428.87 FEET; THENCE LEAVING SAID EAST LINE, NORTH 90000100" EAST 9.39 FEET TO THE TRUE POINT OF BEGINNING; THENCE NORTH 90000100" EAST, 30.00 FEET; THENCE SOUTH 00000'00" EAST, 224.69 FEET; THENCE NORTH 80000100" EAST, 118.54 FEET; THENCE SOUTH 89059150" EAST, 111.68 FEET TO A POINT ON THE WESTERLY RIGHT-OF-WAY LINE OF DUNE PALMS ROAD; THENCE ALONG SAID WESTERLY RIGHT-OF-WAY LINE OF DUNE PALMS ROAD, SOUTH 00013141" EAST, 36.00 FEET; THENCE LEAVING SAID WESTERLY RIGHT-OF-WAY LINE OF DUNE PALMS ROAD, NORTH 90000100" WEST, 108.67 FEET; THENCE SOUTH 80000'00" EAST, 152.20 FEET; THENCE NORTH 00000100" WEST, 266.53 FEET TO THE TRUE POINT OF BEGINNING. PORTION OF APN 649-030-034-5 End of Legal Description 2A Stewart Title Guaranty Company, Stewart Title Insurance Company, Stewart Title of California, Inc. Privacy Policy Notice PURPOSE OF THIS NOTICE Title V of the Gramm -Leach -Bliley Act (GLBA) generally prohibits any financial institution, directly or through its affiliates, from sharing nonpublic personal information about you with nonaffiliated third party unless the institution provides you with a notice of its privacy policies and practices, such as the type of information that it collects about you and the categories of persons or entities to whom it may be disclosed. In compliance with the GLBA, we are providing you with this document, which notifies you of the privacy policies and practices of Stewart Title Guaranty Company, Stewart Title Insurance Company, Stewart Title of California, Inc. We may collect nonpublic personal information about you from the following sources: * Information we receive from you, such as on applications or other forms. * Information about your transactions we secure from our files, or from our affiliates or others. * Information we receive from a consumer reporting agency. * Information that we receive from others involved in your transaction, such as the real estate agent or lender. Unless it is specifically stated otherwise in an amended Privacy Policy Notice, no additional nonpublic personal information will be collected about you. We may disclose any of the above information that we collect about our customers or former customers to our affiliates or to nonaffiliates third parties permitted by law. We also may disclose this information about our customers or former customers to companies that perform services on our behalf as permitted by law. WE DO NOT DISCLOSE ANY NONPUBLIC PERSONAL INFORMATION ABOUT YOU WITH ANYONE FOR ANY PURPOSE THAT IS NOT SPECIFICALLY PERMITTED BY LAW. We restrict access to nonpublic personal information about you to those employees who need to know that information in order to provide products or services to you. We maintain physical, electronic, and procedural safeguards that comply with federal regulations to guard your nonpublic personal information. CLTA PRELIMINARY REPS. __I' FORM EXHIBIT A CLTA PRELIMINARY REPORT FORM LIST OF PRINTED EXCEPTIONS AND EXCLUSIONS SCHEDULE B 1. CALIFORNIA LAND TITLE ASSOCIATION STANDARD COVERAGE POLICY - 1990 EXCLUSIONS FROM COVERAGE THE FOLLOWING MATTERS ARE EXPRESSLY EXCLUDED FROM THE COVERAGE OF THIS POLICY AND THE COMPANY WILL NOT PAY LOSS OR DAMAGE, COSTS, ATTORNEYS' FEES OR EXPENSES WHICH ARISE BY REASON OF: 1. (A) ANY LAW, ORDINANCE OR GOVERNMENTAL REGULATION (INCLUDING BUT NOT LIMITED TO BUILDING OR ZONING LAWS, ORDINANCES, OR REGULATIONS) RESTRICTING, REGULATING, PROHIBITING OR RELATING TO (I) THE OCCUPANCY, USE, OR ENJOYMENT OF THE LAND; (II) THE CHARACTER, DIMENSIONS OR LOCATION OF ANY IMPROVEMENT NOW OR HEREAFTER ERECTED ON THE LAND; (III) A SEPARATION IN OWNERSHIP OR A CHANGE IN THE DIMENSIONS OR AREA OF THE LAND OR ANY PARCEL OF WHICH THE LAND IS OR WAS A PART; OR (IV) ENVIRONMENTAL PROTECTION, OR THE EFFECT OF ANY VIOLATION OF THESE LAWS, ORDINANCES OR GOVERNMENTAL REGULATIONS, EXCEPT TO THE EXTENT THAT A NOTICE OF THE ENFORCEMENT THEREOF OR A NOTICE OF A DEFECT, LIEN OR ENCUMBRANCE RESULTING FROM A VIOLATION OR ALLEGED VIOLATION AFFECTING THE LAND HAS BEEN RECORDED IN THE PUBLIC RECORDS AT DATE OR POLICY. (B) ANY GOVERNMENTAL POLICE POWER NOT EXCLUDED BY (A) ABOVE, EXCEPT TO THE EXTEND THAT A NOTICE OF THE EXERCISE THEREOF OR NOTICE OF A DEFECT, LIEN OR ENCUMBRANCE RESULTING FROM A VIOLATION OR ALLEGED VIOLATION AFFECTING THE LAND HAS BEEN RECORDED IN THE PUBLIC RECORDS AT DATE OF POLICY. 2. RIGHTS OF EMINENT DOMAIN UNLESS NOTICE OF THE EXERCISE THEREOF HAS BEEN RECORDED IN THE PUBLIC RECORDS AT DATE OF POLICY, BUT NOT EXCLUDING FROM COVERAGE ANY TAKING WHICH HAS OCCURRED PRIOR TO DATE OF POLICY WHICH WOULD BE BINDING ON THE RIGHTS OF A PURCHASER FOR VALUE WITHOUT KNOWLEDGE. 3. DEFECTS, LIENS, ENCUMBRANCES, ADVERSE CLAIMS OR OTHER MATTERS: (A) WHETHER OR NOT RECORDED IN THE PUBLIC RECORDS AT DATE OF POLICY, BUT CREATED, SUFFERED, ASSUMED OR AGREED TO BY THE INSURED CLAIMANT; (B) NOT KNOWN TO THE COMPANY, NOT RECORDED IN THE PUBLIC RECORDS AT DATE OF POLICY, BUT KNOWN TO THE INSURED CLAIMANT AND NOT DISCLOSED IN WRITING TO THE COMPANY BY THE INSURED CLAIMANT PRIOR TO THE DATE THE INSURED CLAIMANT BECAME AN INSURED UNDER THIS POLICY; (C) RESULTING IN NO LOSS OR DAMAGE TO THE INSURED CLAIMANT; (D) ATTACHING OR CREATED SUBSEQUENT TO DATE OF POLICY; OR (E) RESULTING IN LOSS OR DAMAGE WHICH WOULD NOT HAVE BEEN SUSTAINED IF THE INSURED CLAIMANT HAD PAID VALUE FOR THE INSURED MORTGAGE OR FOR THE ESTATE OR INTEREST INSURED BY THIS POLICY. 4. UNENFORCEABLILITY OF THE LIEN OF THE INSURED MORTGAGE BECAUSE OF THE INABILITY OR FAILURE OF THE INSURED AT DATE OF POLICY, OR THE INABILITY OR FAILURE OF ANY SUBSEQUENT OWNER OR INDEBTEDNESS, TO COMPLY WITH THE APPLICABLE DOING BUSINESS LAWS, OF THE STATE IN WHICH THE LAND IS SITUATED. 5. INVALIDITY OR UNENFORCEABILITY OF THE LIEN OF THE INSURED MORTGAGE, OR CLAIM THEREOF, WHICH ARISES OUT OF THE TRANSACTION EVIDENCED BY THE INSURED MORTGAGE AND IS BASED UPON USURY OR ANY CONSUMER CREDIT PROTECTION OR TRUTH IN LENDING LAW. 6. ANY CLAIM, WHICH ARISES OUT OF THE TRANSACTION VESTING IN THE INSURED THE ESTATE OR INTEREST INSURED BY THIS POLICY OR THE TRANSACTION CREATING THE INTEREST OF THE INSURED LENDER, BY REASON OF THE OPERATION OF FEDERAL BANKRUPTCY, STATE INSOLVENCY OR SIMILAR CREDITORS' RIGHTS LAWS. EXCEPTIONS FROM COVERAGE THIS POLICY DOES NOT INSURE AGAINST LOSS OR DAMAGE (AND THE COMPANY WILL NOT PAY COSTS, ATTORNEYS' FEES OR EXPENSES) WHICH ARISE BY REASON OF: 1. TAXES OR ASSESSMENTS WHICH ARE NOT SHOWN AS EXISTING LIENS BY THE RECORDS OF ANY TAXING AUTHORITY THAT LEVIES TAXES OR ASSESSMENTS ON REAL PROPERTY OR BY THE PUBLIC RECORDS. PROCEEDINGS BY A PUBLIC AGENCY WHICH MAY RESULT IN TAXES OR ASSESSMENTS, OR NOTICES OF SUCH PROCEEDINGS, WHETHER OR NOT SHOWN BY THE RECORDS OF SUCH AGENCY OR BY THE PUBLIC RECORDS. 2. ANY FACTS, RIGHTS, INTERESTS OR CLAIMS WHICH ARE NOT SHOWN BY THE PUBLIC RECORDS BUT WHICH COULD BE ASCERTAINED BY AN INSPECTION OF THE LAND OR WHICH MAY BE ASSERTED BY PERSONS IN POSSESSION THEREOF. 3. EASEMENTS, LIENS OR ENCUMBRANCES, OR CLAIMS THEREOF, WHICH ARE NOT SHOWN BY THE PUBLIC RECORDS. 4. DISCREPANCIES, CONFLICTS IN BOUNDARY LINES, SHORTAGE IN AREA, ENCROACHMENTS, OR ANY OTHER FACTS WHICH A CORRECT SURVEY WOULD DISCLOSE, AND WHICH ARE NOT SHOWN BY THE PUBLIC RECORDS. 5. (A) UNPATENTED MINING CLAIMS; (B) RESERVATIONS OR EXCEPTIONS IN PATENTS OR IN ACTS AUTHORIZING THE ISSUANCE THEREOF; (C) WATER RIGHTS, CLAIMS OR TITLE TO WATER, WHETHER OR NOT THE MATTERS EXCEPTED UNDER (A), (B) OR (C) ARE SHOWN BY THE PUBLIC RECORDS. (LIST OF PRINTED EXCEPTIONS AND EXCLUSIONS CONTINUED ON NEXT PAGE) REV. 1999 STEWART TITLE GUARANTY COMPANY PAGE 1 OF 6 CLTA PRELIMINARY REPORT FORM 2. AMERICAN LAND TITLE ASSOCIATION RESIDENTIAL TITLE INSURANCE POLICY (6-1-87) EXCLUSIONS IN ADDITION TO THE EXCEPTIONS IN SCHEDULE B, YOU ARE NOT INSURED AGAINST LOSS, COSTS, ATTORNEYS' FEES, AND EXPENSES RESULTING FROM: 1. GOVERNMENTAL POLICE POWER, AND THE EXISTENCE OR VIOLATION OF ANY LAW OR GOVERNMENTAL REGULATION. THIS INCLUDES BUILDING AND ZONING ORDINANCES AND ALSO LAWS AND REGULATIONS CONCERNING: * LAND USE * IMPROVEMENTS ON THE LAND * LAND DIVISION * ENVIRONMENTAL PROTECTION THIS EXCLUSION DOES NOT APPLY TO VIOLATIONS OR THE ENFORCEMENT OF THESE MATTERS WHICH APPEAR IN THE PUBLIC RECORDS AT POLICY DATE. THIS EXCLUSION DOES NOT LIMIT THE ZONING COVERAGE DESCRIBED IN ITEMS 12 AND 13 OF COVERED TITLE RISKS. 2. THE RIGHT TO TAKE THE LAND BY CONDEMNING IT, UNLESS: * A NOTICE OF EXERCISING THE RIGHT APPEARS IN THE PUBLIC RECORDS ON THE POLICY DATE * THE TAKING HAPPENED PRIOR TO THE POLICY DATE AND IS BINDING ON YOU IF YOU BOUGHT THE LAND WITHOUT KNOWING OF THE TAKING 3. TITLE RISKS: * THAT ARE CREATED, ALLOWED, OR AGREED TO BY YOU * THAT ARE KNOWN TO YOU, BUT NOT TO US, ON THE POLICY DATE - - UNLESS THEY APPEARED IN THE PUBLIC RECORDS * THAT RESULT IN NO LOSS TO YOU * THAT FIRST AFFECT YOUR TITLE AFTER THE POLICY DATE - - THIS DOES NOT LIMIT THE LABOR AND MATERIAL LIEN COVERAGE IN ITEM 8 OF COVERED TITLE RISKS 4. FAILURE TO PAY VALUE FOR YOUR TITLE. 5. LACK OF A RIGHT: * TO ANY LAND OUTSIDE THE AREA SPECIFICALLY DESCRIBED AND REFERRED TO IN ITEM 3 OF SCHEDULE A OR * IN STREETS, ALLEYS, OR WATERWAYS THAT TOUCH YOUR LAND THIS EXCLUSION DOES NOT LIMIT THE ACCESS COVERAGE IN ITEM 5 OF COVERED TITLE RISKS. EXCEPTIONS FROM COVERAGE THIS POLICY DOES NOT INSURE AGAINST LOSS OR DAMAGE (AND THE COMPANY WILL NOT PAY COSTS, ATTORNEYS' FEES OR EXPENSES) WHICH ARISE BY REASON OF: 1. ANY RIGHTS, INTERESTS, OR CLAIMS OF PARTIES IN POSSESSION OF THE LAND NOT SHOWN BY THE PUBLIC RECORDS. 2. ANY EASEMENTS OR LIENS NOT SHOWN BY THE PUBLIC RECORDS. THIS DOES NOT LIMIT THE LIEN COVERAGE IN ITEM 8 OF COVERED TITLE RISKS. 3. ANY FACTS ABOUT THE LAND WHICH A CORRECT SURVEY WOULD DISCLOSE AND WHICH ARE NOT SHOWN BY THE PUBLIC RECORDS. THIS DOES NOT LIMIT THE FORCED REMOVAL COVERAGE IN ITEM 12 OF COVERED TITLE RISKS. 4. ANY WATER RIGHTS OR CLAIMS OR TITLE TO WATER IN OR UNDER THE LAND, WHETHER OR NOT SHOWN BY THE PUBLIC RECORDS. (LIST OF PRINTED EXCEPTIONS AND EXCLUSIONS CONTINUED ON NEXT PAGE) REV. 1999 STEWART TITLE GUARANTY COMPANY PAGE 2 OF 6 CLTA PRELIMINARY REPORT FORM 3. AMERICAN LAND TITLE ASSOCIATION LOAN POLICY (10-17-92) WITH ALTA ENDORSEMENT - FORM 1 COVERAGE AND AMERICAN LAND TITLE ASSOCIATION LEASEHOLD LOAN POLICY (10-17-92) WITH ALTA ENDORSEMENT - FORM 1 COVERAGE EXCLUSIONS AND COVERAGE THE FOLLOWING MATTERS ARE EXPRESSLY EXCLUDED FROM THE COVERAGE OF THIS POLICY AND THE COMPANY WILL NOT PAY LOSS OR DAMAGE, COSTS, ATTORNEY'S FEES OR EXPENSES WHICH ARISE BY REASON OF: 1. (A) ANY LAW, ORDINANCE OR GOVERNMENTAL REGULATION (INCLUDING BUT NOT LIMITED TO BUILDING AND ZONING LAWS, ORDINANCES, OR REGULATIONS) RESTRICTING, REGULATING, PROHIBITING OR RELATING TO (I) THE OCCUPANCY, USE, OR ENJOYMENT OF THE LAND; (II) THE CHARACTER, DIMENSIONS OR LOCATION OF ANY IMPROVEMENT NOW OR HEREAFTER ERECTED ON THE LAND; (III) A SEPARATION IN OWNERSHIP OR A CHANGE IN THE DIMENSIONS OR AREA OF THE LAND OR ANY PARCEL OF WHICH THE LAND IS OR WAS A PART; OR (IV) ENVIRONMENTAL PROTECTION, OR THE EFFECT OF ANY VIOLATION OF THESE LAWS, ORDINANCES OR GOVERNMENTAL REGULATIONS, EXCEPT TO THE EXTENT THAT A NOTICE OF THE ENFORCEMENT THEREOF OR A NOTICE OF A DEFECT, LIEN OR ENCUMBRANCE RESULTING FROM A VIOLATION OR ALLEGED VIOLATION AFFECTING THE LAND HAS BEEN RECORDED IN THE PUBLIC RECORDS AT DATE OF POLICY. (B) ANY GOVERNMENTAL POLICE POWER NOT EXCLUDED BY (A) ABOVE, EXCEPT TO THE EXTENT THAT A -NOTICE OF THE EXERCISE THEREOF OR A NOTICE OF A DEFECT, LIEN OR ENCUMBRANCE RESULTING FROM A VIOLATION OR ALLEGED VIOLATION AFFECTING THE LAND HAS BEEN RECORDED IN THE PUBLIC RECORDS AT DATE OF POLICY. 2. RIGHTS OF EMINENT DOMAIN UNLESS NOTICE OF THE EXERCISE THEREOF HAS BEEN RECORDED IN THE PUBLIC RECORDS AT DATE OF POLICY, BUT NOT EXCLUDING FROM COVERAGE ANY TAKING WHICH HAS OCCURRED PRIOR TO DATE OF POLICY WHICH WOULD BE BINDING ON THE RIGHTS OF A PURCHASER FOR VALUE WITHOUT KNOWLEDGE. 3. DEFECTS, LIENS, ENCUMBRANCES, ADVERSE CLAIMS OR OTHER MATTERS: (A) CREATED, SUFFERED, ASSUMED OR AGREED TO BY THE INSURED CLAIMANT; (B) NOT KNOWN TO THE COMPANY, NOT RECORDED IN THE PUBLIC RECORDS AT DATE OF POLICY, BUT KNOWN TO THE INSURED CLAIMANT AND NOT DISCLOSED IN WRITING TO THE COMPANY BY THE INSURED CLAIMANT PRIOR TO THE DATE THE INSURED CLAIMANT BECAME AN INSURED UNDER THIS POLICY; (C) RESULTING IN NO LOSS OR DAMAGE TO THE INSURED CLAIMANT; (D) ATTACHING OR CREATED SUBSEQUENT TO DATE OF POLICY (EXCEPT TO THE EXTENT THAT THIS POLICY INSURES THE PRIORITY OF THE LIEN OF THE INSURED MORTGAGE OVER ANY STATUTORY LIEN FOR SERVICES, LABOR OR MATERIAL OR TO THE EXTENT INSURANCE IS AFFORDED HEREIN AS TO THE ASSESSMENTS FOR STREET IMPROVEMENTS UNDER CONSTRUCTION OR COMPLETED AT DATE OF POLICY); OR (E) RESULTING IN LOSS OR DAMAGE WHICH WOULD NOT HAVE BEEN SUSTAINED IF THE INSURED CLAIMANT HAD PAID VALUE FOR THE INSURED MORTGAGE. 4. UNENFORCEABILITY OF THE LIEN OF THE INSURED MORTGAGE BECAUSE OF THE INABILITY OR FAILURE OF THE INSURED AT DATE OF POLICY, OR THE INABILITY OR FAILURE OF ANY SUBSEQUENT OWNER OF THE INDEBTEDNESS, TO COMPLY WITH APPLICABLE DOING BUSINESS LAWS OF THE STATE IN WHICH THE LAND IS SITUATED. 5. INVALIDITY OR UNENFORCEABILITY OF THE LIEN OF THE INSURED MORTGAGE, OR CLAIM THEREOF, WHICH ARISES OUT OF THE TRANSACTION EVIDENCED BY THE INSURED MORTGAGE AND IS BASED UPON USURY OR ANY CONSUMER CREDIT PROTECTION OR TRUTH IN LENDING LAW. 6. ANY STATUTORY LIEN FOR SERVICES, LABOR OR MATERIALS (OR THE CLAIM OF PRIORITY OF ANY STATUTORY LIEN FOR SERVICES, LABOR OR MATERIALS OVER THE LIEN OF THE INSURED MORTGAGE) ARISING FROM AN IMPROVEMENT OR WORK RELATED TO THE LAND WHICH IS CONTRACTED FOR AND COMMENCED SUBSEQUENT TO DATE OF POLICY AND IS NOT FINANCED IN WHOLE OR IN PART BY PROCEEDS OF THE INDEBTEDNESS SECURED BY THE INSURED MORTGAGE WHICH AT DATE OF POLICY THE INSURED HAS ADVANCED OR IS OBLIGATED TO ADVANCE. 7. ANY CLAIM, WHICH ARISES OUT OF THE TRANSACTION CREATING THE INTEREST OF THE MORTGAGEE INSURED BY THIS POLICY, BY REASON OF THE OPERATION OF FEDERAL BANKRUPTCY, STATE INSOLVENCY, OR SIMILAR CREDITORS' RIGHTS LAWS, THAT IS BASED ON: (I) THE TRANSACTION CREATING THE INTEREST OF THE INSURED MORTGAGEE BEING DEEMED A FRAUDULENT CONVEYANCE OR FRAUDULENT TRANSFER; OR (II) THE SUBORDINATION OF THE INTEREST OF THE INSURED MORTGAGEE AS A RESULT OF THE APPLICATION OF THE DOCTRINE OR EQUITABLE SUBORDINATION; OR (III) THE TRANSACTION CREATING THE INTEREST OF THE INSURED MORTGAGEE BEING DEEMED A PREFERENTIAL TRANSFER EXCEPT WHERE THE PREFERENTIAL TRANSFER RESULTS FROM THE FAILURE: (A) TO TIMELY RECORDED THE INSTRUMENT OF TRANSFER; OR (B) OF SUCH RECORDATION TO IMPART NOTICE TO A PURCHASER FOR VALUE OR A JUDGMENT OR LIEN CREDITOR. (LIST OF PRINTED EXCEPTIONS AND EXCLUSIONS CONTINUED ON NEXT PAGE) REV. 1999 STEWART TITLE GUARANTY COMPANY PAGE 3 OF 6 CLTA PRELIMINARY REPORT FORM THE ABOVE POLICY FORMS MAY BE ISSUED TO AFFORD EITHER STANDARD COVERAGE OR EXTENDED COVERAGE. IN ADDITION TO THE ABOVE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE IN A STANDARD COVERAGE POLICY WILL INCLUDE THE FOLLOWING GENERAL EXCEPTIONS: EXCEPTIONS FROM COVERAGE THIS POLICY DOES NOT INSURE AGAINST LOSS OR DAMAGE (AND THE COMPANY WILL NOT PAY COSTS, ATTORNEYS' FEES OR EXPENSES) WHICH ARISE BY REASON OF: 1. TAXES OR ASSESSMENTS WHICH ARE NOT SHOWN AS EXISTING LIENS BY THE RECORDS OF ANY TAXING AUTHORITY THAT LEVIES TAXES OR ASSESSMENTS ON REAL PROPERTY OR BY THE PUBLIC RECORDS. PROCEEDINGS BY A PUBLIC AGENCY WHICH MAY RESULT IN TAXES OR ASSESSMENTS, OR NOTICES OF SUCH PROCEEDINGS, WHETHER OR NOT SHOWN BY THE RECORDS OF SUCH AGENCY OR BY THE PUBLIC RECORDS. 2. ANY FACTS, RIGHTS, INTERESTS OR CALIMS WHICH ARE NOT SHOWN BY THE PUBLIC RECORDS BUT WHICH COULD BE ASCERTAINED BY AN INSPECTION OF THE LAND OR BY MAKING INQUIRY OF PERSONS IN POSSESSION THEREOF. 3. EASEMENTS, LIENS OR ENCUMMBRANCES, OR CLAIMS THEREOF, WHICH ARE NOT SHOWN BY THE PUBLIC RECORDS. 4. DISCREPANCIES, CONFLICTS IN BOUNDARY LINES, SHORTAGE IN AREA, ENCROACHMENTS, OR ANY OTHER FACTS WHICH A CORRECT SURVEY WOULD DISCLOSE, AND WHICH ARE NOT SHOWN BY THE PUBLIC RECORDS. 5. (A) UNPATENTED MINING CLAIMS; (B) RESERVATIONS OR EXCEPTIONS IN PATENTS OR IN ACTS AUTHORIZING THE ISSUANCE THEREOF; (C) WATER RIGHTS, CLAIMS OR TITLE TO WATER, WHETHER OR NOT THE MATTERS EXCEPTED UNDER (A), (B) OR (C) ARE SHOWN BY THE PUBLIC RECORDS. 4. AMERICAN LAND TITLE ASSOCIATION OWNER'S POLICY (10-17-92) AND AMERICAN LAND TITLE ASSOCIATION LEASEHOLD OWNER'S POLICY (10-17-92) EXCLUSIONS FROM COVERAGE THE FOLLOWING MATTERS ARE EXPRESSLY EXCLUDED FROM THE COVERAGE OF THIS POLICY AND THE COMPANY WILL NOT PAY LOSS OR DAMAGE, COST, ATTORNEYS' FEES OR EXPENSES WHICH ARISE BY REASON OF: 1. (A) ANY LAW, ORDINANCE OR GOVERNMENTAL REGULATION (INCLUDING BUT NOT LIMITED TO BUILDING AND ZONING LAWS, ORDINANCES, OR REGULATIONS) RESTRICTING, REGULATING, PROHIBITING OR RELATING TO (I) THE OCCUPANCY, USE, OR ENJOYMENT OF THE LAND; (II) THE CHARACTER, DIMENSIONS OR LOCATION OF ANY IMPROVEMENT NOW OR HEREAFTER ERECTED ON THE LAND; (III) A SEPARATION IN OWNERSHIP OR A CHANGE IN THE DIMENSIONS OR AREA OF THE LAND OR ANY PARCEL OF WHICH THE LAND IS OR WAS A PART; OR (IV) ENVIRONMENTAL PROTECTION, OR THE EFFECT OF ANY VIOLATION OF THESE LAWS, ORDINANCES OR GOVERNMENTAL REGULATIONS, EXCEPT TO THE EXTENT THAT A NOTICE OF THE ENFORCEMENT THEREOF OR A NOTICE OF A DEFECT, LIEN OR ENCUMBRANCE RESULTING FROM A VIOLATION OR ALLEGED VIOLATION AFFECTING THE LAND HAS BEEN RECORDED IN THE PUBLIC RECORDS AT DATE OF POLICY. (B) ANY GOVERNMENTAL POLICE POWER NOT EXCLUDED BY (A) ABOVE, EXCEPT TO THE EXTENT THAT A NOTICE OF THE EXERCISE THEREOF OR A NOTICE OF A DEFECT, LIEN OR ENCUMBRANCE RESULTING FROM A VIOLATION OR ALLEGED VIOLATION AFFECTING THE LAND HAS BEEN RECORDED IN THE PUBLIC RECORDS AT DATE OF POLICY. 2. RIGHTS OF EMINENT DOMAIN UNLESS NOTICE OF THE EXERCISE THEREOF HAS BEEN RECORDED IN THE PUBLIC RECORDS AT DATE OF POLICY, BUT NOT EXCLUDING FROM COVERAGE ANY TAKING WHICH HAS OCCURRED PRIOR TO DATE OF POLICY WHICH WOULD BE BINDING ON THE RIGHTS OF A PURCHASER FOR VALUE WITHOUT KNOWLEDGE. 3. DEFECTS, LIENS, ENCUMBRANCES, ADVERSE CLAIMS OR OTHER MATTERS: (A) CREATED, SUFFERED, ASSUMED OR AGREED TO BY THE INSURED CLAIMANT; (B) NOT KNOWN TO THE COMPANY, NOT RECORDED IN THE PUBLIC RECORDS AT DATE OF POLICY, BUT KNOWN TO THE INSURED CLAIMANT AND NOT DISCLOSED IN WRITING TO THE COMPANY BY THE INSURED CLAIMANT PRIOR TO THE DATE THE INSURED CLAIMANT BECAME AN INSURED UNDER THIS POLICY; (C) RESULTING IN NO LOSS OR DAMAGE TO THE INSURED CLAIMANT; (D) ATTACHING OR CREATED SUBSEQUENT TO DATE OF POLICY; OR (E) RESULTING IN LOSS OR DAMAGE WHICH WOULD NOT HAVE BEEN SUSTAINED IF THE INSURED CLAIMANT HAD PAID VALUE FOR THE ESTATE OR INTEREST INSURED BY THIS POLICY. 4. ANY CLAIM, WHICH ARISES OUT OF THE TRANSACTION VESTING IN THE INSURED THE ESTATE OR INTEREST INSURED BY THIS POLICY, BY REASON OF THE OPERATION OF FEDERAL BANKRUPTCY, STATE INSOLVENCY, OR SIMILAR CREDITORS' RIGHTS LAWS, THAT IS BASED ON: (I) THE TRANSACTION CREATING THE ESTATE OR INTEREST INSURED BY THIS POLICY BEING DEEMED A FRAUDULENT CONVEYANCE OR FRAUDULENT TRANSFER; OR (II) THE TRANSACTION CREATING THE ESTATE OR INTEREST INSURED BY THIS POLICY BEING DEEMED A PREFERENTIAL TRANSFER EXCEPT WHERE THE PREFERENTIAL TRANSFER RESULTS FROM THE FAILURE: (A) TO TIMELY RECORD THE INSTRUMENT OF TRANSFER; OR (B) OF SUCH RECORDATION TO IMPART NOTICE TO A PURCHASER FOR VALUE OR A JUDGMENT OR LIEN CREDITOR. (LIST OF PRINTED EXCEPTIONS AND EXCLUSIONS CONTINUED ON NEXT PAGE) REV. 1999 STEWART TITLE GUARANTY COMPANY PAGE 4 OF 6 CLTA PRELIMINARY REPORT FORM THE ABOVE POLICY FORMS MAY BE ISSUED TO AFFORD EITHER STANDARD COVERAGE OR EXTENDED COVERAGE. IN ADDITION TO THE ABOVE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE IN A STANDARD COVERAGE POLICY WILL INCLUDE THE FOLLOWING GENERAL EXCEPTIONS: EXCEPTIONS FROM COVERAGE THIS POLICY DOES NOT INSURE AGAINST LOSS OR DAMAGE (AND THE COMPANY WILL NOT PAY COSTS, ATTORNEYS' FEES OR EXPENSES) WHICH ARISE BY REASON OF: 1. TAXES OR ASSESSMENTS WHICH ARE NOT SHOWN AS EXISTING LIENS BY THE RECORDS OF ANY TAXING AUTHORITY THAT LEVIES TAXES OR ASSESSMENTS ON REAL PROPERTY OR BY THE PUBLIC RECORDS. PROCEEDINGS BY A PUBLIC AGENCY WHICH MAY RESULT IN TAXES OR ASSESSMENTS, OR NOTICES OF SUCH PROCEEDINGS, WHETHER OR NOT SHOWN BY THE RECORDS OF SUCH AGENCY OR BY THE PUBLIC RECORDS. 2. ANY FACTS, RIGHTS, INTERESTS OR CLAIMS WHICH ARE NOT SHOWN BY THE PUBLIC RECORDS BUT WHICH COULD BE ASCERTAINED BY AN INSPECTION OF THE LAND OR BY MAKING INQUIRY OF PERSONS IN POSSESSION THEREOF. 3. EASEMENTS, LIENS OR ENCUMBRANCES, OR CLAIMS THEREOF, WHICH ARE NOT SHOWN BY THE PUBLIC RECORDS. 4. DISCREPANCIES, CONFLIICTS IN BOUNDARY LINES, SHORTAGE IN AREA, ENCROACHMENTS, OR ANY OTHER FACTS WHICH A CORRECT SURVEY WOULD DISCLOSE, AND WHICH ARE NOT SHOWN BY THE PUBLIC RECORDS. S. (A) UNPATENTED MINING CLAIMS; (B) RESERVATIONS OR EXCEPTIONS IN PATENTS OR IN ACTS AUTHORIZING THE ISSUANCE THEREOF; (C) WATER RIGHTS, CLAIMS OR TITLE TO WATER, WHETHER OR NOT THE MATTERS EXCEPTED UNDER (A), (B) OR (C) ARE SHOWN BY THE PUBLIC RECORDS. 5. CLTA HOMEOWNER'S POLICY OF TITLE INSURANCE (6-2-98) ALTA HOMEOWNER'S POLICY OF TITLE INSURANCE (10-17-98) EXCLUSIONS IN ADDITION TO THE EXCEPTIONS IN SCHEDULE B, YOU ARE NOT INSURED AGAINST LOSS, COSTS, ATTORNEYS' FEES, AND EXPENSES RESULTING FROM: 1. GOVERNMENTAL POLICE POWER, AND THE EXISTENCE OR VIOLATION OF ANY LAW OR GOVERNMENT REGULATION. THIS INCLUDES ORDINANCES, LAWS AND REGULATIONS CONCERNING: A. BUILDING B. ZONING C. LAND USE D. IMPROVEMENTS ON LAND E. LAND DIVISION F. ENVIRONMENTAL PROTECTION THIS EXCLUSION DOES NOT APPLY TO VIOLATIONS OR THE ENFORCEMENT OF THESE MATTERS IF NOTICE OF THE VIOLATION OR ENFORCEMENT APPEARS IN THE PUBLIC RECORDS AT THE POLICY DATE. THIS EXCLUSION DOES NOT LIMIT THE COVERAGE DESCRIBED IN COVERED RISK 14, 15, 16, 17, OR 24. 2. THE FAILURE OF YOUR EXISTING STRUCTURES, OR ANY PART OF THEM, TO BE CONSTRUCTED IN ACCORDANCE WITH APPLICABLE BUILDING CODES. THIS EXCLUSION DOES NOT APPLY TO VIOLATIONS OF BUILDING CODES IF NOTICE OF THE VIOLATION APPEARS IN THE PUBLIC RECORDS AT THE POLICY DATE. 3. THE RIGHT TO TAKE THE LAND BY CONDEMNING IT, UNLESS: A. NOTICE OF EXERCISING THE RIGHT APPEARS IN THE PUBLIC RECORDS AT THE POLICY DATE; OR B. THE TAKING HAPPENED BEFORE THE POLICY DATE AND IS BINDING ON YOU IF YOU BOUGHT THE LAND WITHOUT KNOWING OF THE TAKING. 4. RISKS: A. THAT ARE CREATED, ALLOWED, OR AGREED TO BY YOU, WHETHER OR NOT THEY APPEAR IN THE PUBLIC RECORDS; B. THAT ARE KNOWN TO YOU AT THE POLICY DATE, BUT NOT TO US, UNLESS THEY APPEAR IN THE PUBLIC RECORDS AT THE POLICY DATE; C. THAT RESULT IN NO LOSS TO YOU; OR D. THAT FIRST OCCUR AFTER THE POLICY DATE - THIS'DOES NOT LIMIT THE COVERAGE DESCRIBED IN COVERED RISK 7, 8.D, 22, 23, 24 OR 25. 5. FAILURE TO PAY VALUE FOR YOUR TITLE. 6. LACK OF A RIGHT: A. TO ANY LAND OUTSIDE THE AREA SPECIFICALLY DESCRIBED AND REFERRED TO IN PARAGRAPH 3 OF SCHEDULE A; AND B. IN STREETS, ALLEYS, OR WATERWAYS THAT TOUCH THE LAND. THIS EXCLUSION DOES NOT LIMIT THE COVERAGE DESCRIBED IN COVERED RISK 11 OR 18. REV. 1999 STEWART TITLE GUARANTY COMPANY PAGE 5 OF 6 6. "GOLD" COMPREHENSIVE PROTECTION LOAN POLICY OF TITLE INSURANCE EXCLUSIONS FROM COVERAGE THE FOLLOWING MATTERS ARE EXPRESSLY EXCLUDED FROM THE COVERAGE OF THIS POLICY AND THE COMPANY WILL NOT PAY LOSS OR DAMAGE, COST, ATTORNEYS' FEES OR EXPENSES WHICH ARISE BY REASON OF: (A) ANY LAW, ORDINANCE OR GOVERNMENTAL REGULATION (INCLUDING BUT NOT LIMITED TO BUILDING AND ZONING LAWS, ORDINANCES, OR REGULATIONS) RESTRICTING, REGULATING, PROHIBITING OR RELATING TO (I) THE OCCUPANCY, USE, OR ENJOYMENT OF THE LAND; (II) THE CHARACTER, DIMENSIONS OR LOCATION OF ANY IMPROVEMENT NOW OR HEREAFTER ERECTED ON THE LAND; (III) A SEPARATION IN OWNERSHIP OR A CHANGE IN THE DIMENSIONS OR AREA OF THE LAND OR ANY PARCEL OF WHICH THE LAND IS OR WAS A PART; OR (IV) ENVIRONMENTAL PROTECTION, OR THE EFFECT OF ANY VIOLATION OF THESE LAWS, ORDINANCES OR GOVERNMENTAL REGULATIONS, EXCEPT TO THE EXTENT THAT A NOTICE OF THE ENFORCEMENT THEREOF OR A NOTICE OF A DEFECT, LIEN OR ENCUMBRANCE RESULTING FROM A VIOLATION OR ALLEGED VIOLATION AFFECTING THE LAND HAS BEEN RECORDED IN THE PUBLIC RECORDS AT DATE OF POLICY. THIS EXCLUSION FROM COVERAGE 1(A) DOES NOT LIMIT THE COVERAGE PROVIDED IN INSURING PROVISIONS NUMBER 14, 15, 16, 17, 34, AND 41. (B) ANY GOVERNMENTAL POLICE POWER NOT EXCLUDED BY (A) ABOVE, EXCEPT TO THE EXTENT THAT A NOTICE OF THE EXERCISE THEREOF OR A NOTICE OF A DEFECT, LIEN OR ENCUMBRANCE RESULTING FROM A VIOLATION OR ALLEGED VIOLATION AFFECTING THE LAND HAS BEEN RECORDED IN THE PUBLIC RECORDS AT DATE OF POLICY. THIS EXCLUSION FROM COVERAGE 1(A) DOES NOT LIMIT THE COVERAGE PROVIDED IN INSURING PROVISIONS NUMBER 14, 15, 16, 17, 34, AND 41. 2. RIGHTS OF EMINENT DOMAIN UNLESS NOTICE OF THE EXERCISE THEREOF HAS BEEN RECORDED IN THE PUBLIC RECORDS AT DATE OF POLICY, BUT NOT EXCLUDING FROM COVERAGE ANY TAKING WHICH HAS OCCURRED PRIOR TO DATE OF POLICY WHICH WOULD BE BINDING ON THE RIGHTS OF A PURCHASER FOR VALUE WITHOUT KNOWLEDGE. DEFECTS, LIENS, ENCUMBRANCES, ADVERSE CLAIMS OR OTHER MATTERS: (A) CREATED, SUFFERED, ASSUMED OR AGREED TO BY THE INSURED CLAIMANT; (B) NOT KNOWN TO THE COMPANY, NOT RECORDED IN THE PUBLIC RECORDS AT DATE OF POLICY, BUT KNOWN TO THE INSURED CLAIMANT AND NOT DISCLOSED IN WRITING TO THE COMPANY BY THE INSURED CLAIMANT PRIOR TO THE DATE THE INSURED CLAIMANT BECAME AN INSURED UNDER THIS POLICY; (C) RESULTING IN NO LOSS OR DAMAGE TO THE INSURED CLAIMANT; (D) ATTACHING OR CREATED SUBSEQUENT TO DATE OF POLICY (THIS EXCLUSION FROM COVERAGE 3 (D) DOES NOT LIMIT THE COVERAGE PROVIDED IN INSURING PROVISIONS NUMBER 7, 8, 15, 16, 18, 21, 22, 24, 25, 26, 28, 29, 30, 32, 33, 34, 35, 38, 39, AND 40); (E) RESULTING IN LOSS OR DAMAGE WHICH WOULD NOT HAVE BEEN SUSTAINED IF THE INSURED CLAIMANT HAD PAID VALUE FOR THE INSURED MORTGAGE. 4. UNENFORCEABILITY OF THE LIEN OF THE INSURED MORTGAGE BECAUSE OF THE INABILITY OR FAILURE OF THE INSURED AT DATE OF POLICY, OR THE INABILITY OR FAILURE OF ANY SUBSEQUENT OWNER OF THE INDEBTEDNESS, TO COMPLY WITH APPLICABLE DOING BUSINESS LAWS OF THE STATE IN WHICH THE LAND IS SITUATED. S. INVALIDITY OR UNENFORCEABILITY OF THE LIEN OF THE INSURED MORTGAGE, OR CLAIM THEREOF, WHICH ARISES OUT OF THE TRANSACTION EVIDENCED BY THE INSURED MORTGAGE AND IS BASED UPON ANY CONSUMER CREDIT PROTECTION OR TRUTH -IN -LENDING LAW. 6. ANY CLAIM, WHICH ARISES OUT OF THE TRANSACTION CREATING THE INTEREST OF THE MORTGAGEE INSURED BY THIS POLICY, BY REASON OF THE OPERATION OF FEDERAL BANKRUPTCY, STATE INSOLVENCY, OR SIMILAR CREDITORS' RIGHTS LAWS, THAT IS BASED ON: (A) THE TRANSACTION CREATING THE ESTATE OF THE INSURED MORTGAGEE BEING DEEMED A FRAUDULENT CONVEYANCE OR FRAUDULENT TRANSFER; OR (B) THE SUBORDINATION OF THE INTEREST OF THE INSURED MORTGAGEE AS A RESULT OF THE APPLICATION OF THE DOCTRINE OF EQUITABLE SUBORDINATION; OR (C) THE TRANSACTION CREATING THE INTEREST OF THE INSURED MORTGAGEE BEING DEEMED A PREFERENTIAL TRANSFER EXCEPT WHERE THE PREFERENTIAL TRANSFER RESULTS FROM THE FAILURE; (I) TO TIMELY RECORD THE INSTRUMENT OF TRANSFER; OR (II) OF SUCH RECORDATION TO IMPART NOTICE TO A PURCHASER FOR VALUE OR A JUDGMENT OR LIEN CREDITOR. 7. TAXES, ASSESSMENTS, COSTS, CHARGES, DAMAGES AND OTHER OBLIGATIONS TO THE GOVERNMENT SECURED BY STATUTORY LIENS THAT BECOME A LIEN ON THE LAND SUBSEQUENT TO DATE OF POLICY, BUT THIS EXCLUSION 7 DOES NOT LIMIT THE COVERAGE OF INSURING PROVISION 34. REV. 1999 STEWART TITLE GUARANTY COMPANY PAGE 6 OF 6 r r �stewart =, V title of cal'rfornia, inc. Date October 20, 2005 Escrow Officer Rhonda K. Oliver Escrow Number 80129266KW Property Address Dune Palms Rd/Hwy I I I La Quinta, California 92253 Inland Empire Division 78900 Avenue 47, Suite 112 La Quinta, CA 92253 760-771-4645 760-771-5854fax www.stcie.com NYSE: STC SUPPLEMENTAL ESCROW INSTRUCTIONS TO CONTRACT AGREEMENT STEWART TITLE OF CALIFORNIA, INC. IS LICENSED BY THE STATE OF CALIFORNIA UNDER THE DEPARTMENT OF INSURANCE. LICENSE NO.388 You have been provided with a copy of Agreement for Purchase and Sale and Escrow Instructions, dated July 19, 2005 and as amended by that certain Amendment No. I to Agreement for Purchase and Sale and Escrow Instructions (the "Agreement") by and between La Quinta Redevelopment Agency, (the "Seller"), and Stamko Development Co., LP, (the "Buyer"), which is to be construed as your escrow instructions insofar as closing your escrow is concerned. Escrow Agent will act in accordance with the terms of the Agreement and the attached General Provisions, in its capacity as Escrow Agent in the performance of its duties, to the extent that escrow agents are generally expected to act or perform. By execution of these instructions, parties herein acknowledge that said General Provisions are made a part of said Agreement. However, in the event of any inconsistency between the General Provisions and the Agreement the terms and provisions of the Agreement shall control as the agreement between the parties. NOW, THEREFORE, in consideration of the terms and provisions of the Agreement, and for purposes of clarification relative thereto, Buyer and Seller herein specifically instruct Escrow Holder as follows: 1. PURCHASE PRICE: The total "Purchase Price" is hereby established and agreed upon to be $2,714,445.00 and allocated as follows: Buyer to deposit concurrently herewith the amount of $50,000.00 Buyer to deposit prior to close of escrow the cash balance of $2,714,445.00 FOR A TOTAL PURCHASE PRICE Of $2,714,445.00 2. NOTABLE DATES: pursuant to the Agreement, the following are notable dates to be considered: DUE DILIGENCE PERIOD: The "Due Diligence Period" expired on September 2, 2005, except for title matters, as described in Section 3.1.1, for which the Due Diligence Period shall not expire until September 30, 2005. CLOSE OF ESCROW: The "Close of Escrow" shall be on October 7, 2005 �. nix,. -29266KA gupp1--El. T. C.—Ag—1 Pagel of2 ------ ---- Deleted. October 18, 2005 3. LEGAL COUNSEL'S INSTRUCTIOirS: From time to time, Escrow Holder may be provided with written instructions from Buyer and/or Seller's legal counsels, including, but not limited to, contingency approval letters and Closing Instructions. Buyer and Seller hereby authorize and instruct Escrow Holder to comply and act upon such written instructions from their legal counsels without the necessity of buyer and/or Seller's written approval thereto. 4. FACSIMILE SIGNATURES: Buyer and Seller (i) agree to permit the use, from time to time and where appropriate, of facsimile signatures in order to expedite the transaction contemplated by the Agreement, (ii) intend to be bound by its respective facsimile signatures, and (iii) are aware that the other will rely on the facsimile signatures, and (iv) authorize and instruct Escrow Holder to rely and act upon such facsimile signatures as originals. 5. BUSINESS DAY: Whenever notice must be given, or funds or documents delivered or any action must be taken pursuant to the Agreement, and the last day therefore is a day other than a Business Day, then such notice may be given or such funds or documents may be delivered, or such other actions may be taken, on the next succeeding day that is a "Business Day". Business Days shall be defined as Monday through Friday, 9:00 a.m. to 5:00 p.m. Pacific Standard Time exclusive of Federal holidays. 6. HAZARD INSURANCE: No fire, hazard, or liability insurance coverage shall be obtained through escrow and such shall not be a concern of Escrow Holder. 7. GENERAL PROVISION 20: Paragraph 20 of the attached General Provisions is hereby amended to read as follows: If any form of Purchase agreement or amendment or supplement (collectively "Purchase Agreement") is deposited to this escrow, it is understood that the Agreement shall be effective only as between the parties thereto, and that Escrow Holder shall not be responsible for interpreting any provision of the Agreement. Notwithstanding the foregoing, Escrow Holder shall comply with the provisions in the Agreement that pertain to the Escrow. In connection with any loan transaction, Escrow Holder is authorized to deliver a copy of the Agreement and a copy of all escrow instructions, supplements or amendments to the Lender. If there is a conflict between the instructions and the agreement in regards to escrow, these instructions shall take precedence over the agreement. The foregoing instructions and the GENERAL PROVISIONS attached hereto are hereby approved by all of the undersigned and they agree to hand you the documents and/or funds as required to comply with same. Buyer(s): Staniko Development Co. LP Christine F. Clark President Seller(s): La R` eylevelopment Agency � By: FHO%- 1AS P. GENOVESE. EXEC[JTlVF, DIRECTOR Fvo.N-9BI29266KW-SupplemsnW EI. T Co A- Page 2 of 2 EXHIBIT 1 GENERAL PROVISIONS 1. DEPOSIT OF FUNDS, OPPORTUNITY TO EARN INTEREST AND PRORATIONS All funds received in this escrow shall be deposited with other escrow funds into one or more non -interest bearing escrow accounts at a financial institution selected by Escrow Agent. Escrow Agent shall not be responsible and shall have no liability for any delay in closing this escrow if the funds deposited are not available for immediate withdrawal as a matter of right pursuant to California Insurance Code Section 12413.1 et. seq. Funds deposited in the financial institution are insured only to the limit provided by the Federal Deposit Insurance Corporation. Escrow Holder shall not be held responsible for lost interest due to wire delays caused by any bank or the Federal Reserve System, and recommends that all parties make themselves aware of banking regulations with regards to placement of wires. You have the opportunity to earn interest on the funds you deposit with us by instructing us to deposit your funds in an interest bearing account. (You do not have an opportunity to earn interest on any funds deposited by a lender) If you elect to earn interest, there is an additional fee in the amount of $50.00 for establishing and maintaining such an account. It is important that you consider this cost as it may exceed the actual interest you earn. Should you not elect to earn interest on your deposit, your funds will be deposited in our General Escrow Account at a financial institution insured by the FDIC. This is a non -interest bearing account; however, Stewart Title of California, Inc. may receive certain financial benefits from that financial institution because of the General Escrow Account and its on -going banking relationship. These benefits may include, without limitation, credits allowed by such financial institution on loans to Stewart Title of California, Inc. and earnings on investments made with the proceeds of such loans, accounting, reporting and other services and products of such financial institution. We do not have an obligation to account to you in any manner for the value of, or to compensate any party for, any benefit received by Stewart Title of California, Inc. Any such benefits shall be deemed additional compensation of Stewart Title of California, hic. for its services in connection with the escrow. All prorations and/or adjustments called for in this escrow shall be made on the basis of a 30 day month or 360 day year, unless otherwise instructed in writing. Proration of real property taxes including supplemental real property taxes, will be made on the basis of the latest available figures provided to Escrow Holder. The phrase close of escrow (COE) as used herein means the date on which instruments/documents are recorded. Disbursements from this escrow will be made by check of Escrow Holder. Unless otherwise instructed in writing, checks will be issued jointly to the parties designated as payees. Signatures (including initials) of principals or their duly authorized agents on any documents/instrument and/or instruction pertaining to this escrow indicate approval of same. 2. SPECIAL RECORDINGS If a "SPECIAL RECORDING" is arranged and completed, meaning recording the documents called for in this escrow, at any time other than the standard recording time for title companies, then all parties hereto represent and warrant that during the period of time between the standard recording time and the time the documents are actually recorded pursuant to the "SPECIAL RECORDING", no additional liens, encumbrances, or exceptions to the title whether involuntary or voluntary, of any kind or nature will attach to or be recorded against the subject property, nor will the subject property be otherwise transferred or conveyed. All parties hereby expressly agree to indemnify and hold Escrow Holder harmless from all claims, losses or damages and attorney's fees resulting from any such additional liens, encumbrances, exceptions to title, transfers or conveyances. 3. AUTHORIZATION TO DELIVER If it is necessary, proper or convenient for the consummation of this escrow, Escrow Holder is authorized to deposit or have deposited funds or documents, or both, handed to Escrow Holder under these escrow instructions with any duly authorized sub -escrow agent, including, but not limited to, any bank, trust company, title insurance company, title company, savings and loan association, or licensed escrow agent, at or before close of escrow in connection with closing this escrow. Any such deposit shall be deemed a deposit under the meaning of these escrow instructions. 4. AUTHORIZATION TO FURNISH COPIES Furnishing copies of any/all escrow instructions, amendments, supplements, preliminary reports, notices of cancellation and closing statements in this escrow to the real estate broker(s), lenders and/or attorney's representing principals to this escrow is authorized. Escrow holder shall not incur any liability to the parties for delivery of said copies. Escrow Numbs: 80129266KW - G—1 Provisions Page 1 of 5 5. TIME AND WRITTEN NOTIFICATION Time is of the essence. In the event the conditions of this escrow have not been complied with at the expiration of the time provided for herein you are permitted, though not required, to complete the same at the earliest possible date thereafter. No notice, demand or change of instructions shall be of any effect to alter, amend, supplement, or vary the terms of these instructions unless given in writing and signed by all parties affected thereby. 6. CANCELLATION PROVISIONS Any principal instructing Escrow Holder to cancel escrow shall file notice of cancellation in Escrow Holder's office in writing and so state the reason for cancellation. Upon receipt of same, Escrow Holder shall prepare cancellation instructions for signatures of the principals and shall forward same to the principals. Upon receipt of mutually agreeable cancellation instructions signed by all principals and after payment of Escrow Holder's cancellation charges, Escrow Holder is authorized to comply with such instructions and cancel the escrow. 7. ACTION IN INTERPLEADER OR OTHER COURT OR LEGAL PROCEEDINGS The principals hereto expressly agree that Escrow Holder has the absolute right, at its election, to file an action in interpleader requiring the principals to answer and litigate their several claims and rights among themselves and Escrow Holder is authorized to deposit with the clerk and the court, all documents, instruments and funds held in escrow. In the event such action is filed, the principals jointly and severally agree to pay Escrow Holder's cancellation charges and costs, expenses and reasonable attorney's fees it is required to expend or incur in such interpleader action, the amount thereof to be fixed and judgment therefore to be rendered by the court. Upon filing of such action, Escrow Holder is thereupon fully released and discharged from all obligations to further perform any duties or obligations otherwise imposed by the terms of this escrow. 8. PERSONAL PROPERTY TAX Escrow Holder is not responsible for any personal property tax which may be assessed to any former owner of the property that is the subject of this escrow, nor for the corporation or license tax of any corporation as a former owner. No examination or insurance as to the amount of payment of personal taxes is required unless specifically requested. 9. LIMITATION ON DUTY TO INFORM It is agreed by the parties hereto, that so far as Escrow Holder's rights and liabilities are involved, the transaction is an escrow and not any other legal relation and STEWART TITLE OF CALIFORNIA, INC. is an Escrow Holder only on the within expressed terms, and Escrow Holder shall have no responsibility for notifying any of the parties of this escrow of any sale, resale, loan, exchange or other transaction involving any property herein described or of the profit realized by any person, firm or corporation (broker, agent and parties to this and/or other escrow included), in connection therewith, regardless of the fact that such transaction(s) may be handled concurrently by Escrow Holder in this escrow or in another escrow. 10. LEGAL ADVICE The parties acknowledge and understand that Escrow Holder is not authorized to practice law, nor give financial advice. The parties are hereby advised to seek legal and financial counsel and advice concerning the effect of these escrow instructions. The parties acknowledge that no representations are made by Escrow Holder about the legal sufficiency, legal consequences, financial effect or tax consequences of the within escrow instructions. 11. DISCLOSURE OF CONDITIONS PRECEDENT The parties to this escrow, by execution thereof, acknowledge their duty to Escrow Holder of full disclosure of those matters, which shall effect the transfer of subject property and conditions of title (inclusive of real personal and intangible property, which matters may result in alien against subject property). Disclosure shall include, but not limited to: water, stock, owners association or maintenance dues, contractual obligations not automatically terminated upon sale, notes, deeds of trust and vendors liens. 12. STATE/FEDERAL CODE NOTIFICATION According to Federal law, the Seller(s), when applicable, will be required to complete a 1099-S Worksheet that will be utilized to generate a 1099 reporting statement to the Internal Revenue Service. You are released from and shall have no liability, obligations or responsibility with respect to (a) withholding of funds pursuant to Section 1445 of the Internal Revenue Code of 1984, "Foreign Investors in Real Property Act" (FIRPTA), as amended (b) advising of requirements, (c) determining whether the seller is a foreign person, under such Section, or (d) obtaining a non -foreign affidavit or other exemption from withholding under such Section nor otherwise making any inquiry concerning compliance with such Section by any party to this transaction. Escrow Numba: 80129266K W - Genual Provisions Page 2 of 5 r r IN ACCORDANCE WITH SECTION 18662 AND 18668 OF THE REVENUE AND TAXATION CODE, A BUYER MAY BE REQUIRED TO WITHHOLD ANY AMOUNT EQUAL TO 3-1/3 PERCENT 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 DISBURSEMENT INSTRUCTIONS AUTHORIZED THE PROCEEDS TO BE SENT TO A FINANCIAL INTERMEDIARY OF THE SELLER, OR 2) A CORPORATE SELLER THAT HAS NO PERMANENT PLACE OF BUSINESS IN CALIFORNIA. FOR FAILURE TO WITHHOLD, THE BUYER MAY BECOME SUBJECT TO PENALTY EQUAL TO THE GREATER OF 10 PERCENT OF THE AMOUNT REQUIRED TO BE WITHHELD OR FIVE HUNDRED DOLLARS ($500.00). 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 ($100,000.00), 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. 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. 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. 13. NO ACTIVITY If there is no written activity by a principal to this escrow within any six-month period after the time limit date as set forth, in the escrow instructions or written extension thereof, Escrow Holder's obligation shall terminate at Escrow Holder's option: All documents, monies or other items deposited with Escrow Holder shall be returned to the respective parties entitled thereto, less fees and charges herein provided. 14. CAPTIONS AND COUNTERPARTS Captions in these escrow instructions are inserted for convenience of reference only and do not define, describe or limit the scope of the intent of these instructions or any of the terms hereof. These instructions may be executed in counterparts, each of which so executed shall, irrespective of the date of its execution and delivery, be deemed an original, and said counterparts together shall constitute one and the same instrument. 15. BINDING All terms of these escrow instructions shall be binding upon, inure to the benefit and be enforceable by the parties hereto and there respective legal representatives, successors and assigns. In the event any term, covenant, condition, provision or agreement herein contained is held to be invalid or void by any court of competent jurisdiction, the invalidity of any such term, covenant, condition, provision or agreement shall in no way affect any other term, covenant, condition, provision or agreement herein contained. 16. USURY Escrow Holder is not to be concerned with any question of usury in any loan or encumbrance involved in the processing of this escrow and is hereby released of any liability or responsibility therefore. Escrow Numba: 60129266KW - G-1 Provisions Page 3 of 5 r r 17. CONFLICTING DEMANDS/INTERPLEADER NO notice, demand or change of instructions shall be of any effect in this escrow unless given in writing by all parties affected thereby. If conflicting demands are made in connection with this escrow, Escrow Holder shall have the absolute right to either withhold and stop all proceedings, or file suit in the interpleader and obtain an order from the court requiring the parties to interplead their several claims and rights amongst themselves. 18. FACSIMILE AND ELECTRONIC MAIL All parties acknowledge that documents and instructions may be transmitted via facsimile (FAX) and/or electronic mail (e-mail). In the event the principals of this transaction, their agents, or assigns, utilize "facsimile (FAX)" transmitted instructions, Escrow Holder may rely and act upon such instructions in the same manner as if original signed instructions were in the possession of Escrow Holder. Any instructions for release of funds will require original signatures prior to said release. 19. DISCRETIONARY TERMINATION At the sole discretion of Escrow Holder, Escrow Holder may elect to terminate its escrow relationship with the principals to the escrow. Funds and documents will be returned upon mutual instructions of the appropriate parties. 20. PURCHASE AGREEMENT If any form of Purchase agreement or amendment or supplement (collectively "Purchase Agreement") is deposited to this escrow, it is understood that such document shall be effective only as between the parties signing the Purchase Agreement. Escrow Holder's only duty is to comply with the instructions set forth in the escrow instructions and shall not be responsible for interpreting or acting on any provision of any Purchase Agreement on which these escrow instructions may be based. Escrow Holder shall not rely on any knowledge or understanding Escrow Holder may have of any such Purchase Agreement in ascertaining or performing the duties of Escrow Holder. In connection with any loan transaction, Escrow Holder is authorized to deliver a copy of any purchase agreement and a copy of all escrow instructions, supplements or amendments to the Lender. 21. ENVIRONMENTAL DISCLOSURE Notwithstanding any actual or other knowledge on the part of Escrow Holder, the parties agree to release Escrow Holder from any and all liability of any kind or nature and to indemnify Escrow Holder of any loss, damages, claims, judgments or costs of any kind or nature resulting from or related to the release or discharge of hazardous or toxic wastes on the subject property whether it occurred in the past or present or may occur in the future which release or discharge is in violation of law, in excess of any state and federal standards, permit requirements and/or disclosure requirements existing at this time or which may exist at a future time. The parties represent that they made their own assessment of the condition of the subject property and have not relied on any of your representations in making the assessment. The parties are advised to seek independent legal and technical environmental expert advice in assessing the risks associated with potential hazardous or toxic wastes. 22. ADDITIONAL DOCUMENTS HANDED TO ESCROW HOLDER Parties agree to hand Escrow Holder applicable documentation to establish their authority to act. Those documents may include, but shall not be limited to the following: 1) If an individual: Statement of Information 2) If a corporation: A Corporate resolution signed by the Secretary of the Corporation, authorizing the acquisition, encumbrancing (if applicable), or sale of the subject property, and designating the authorized signatories on behalf of the corporation, together with a copy of the Articles of Incorporation & By -Laws. 3) If a Trust: copy of the Trust Agreement, any amendments thereto and/or a Certificate of Trust. 4) If a General Partnership: An original Statement of Partnership, in recordable form (if not already recorded) to be recorded in the County in which the subject property is located. A copy of the partnership agreement is also requested. 5) If a Limited Partnership: The LP-1 form, certified by the Secretary of State to record (if not already recorded) in the county in which the subject property is located. A copy of the partnership agreement is also requested. 6) If a Joint Venture: The requirements specified 1, 2, and 3 herein will be applicable as it relates to the entities which comprise the Joint Venture. 7) If a Limited Liability Company (LLC): The LLC1 certified by the Secretary of State to record (if not already recorded) in the county in which the subject property is located. The LLC1 must reflect an expiration date. One person must be named on the LLC1 as managing the LLC, or all members must sign. A copy of the operating agreement is required. The parties further acknowledge that in the event the partners of a partnership are individuals, it may be required that each such partner submit a completed and executed Statement of Information. Escrow N—ba: 80129266KW - G-1 Provisions Page 4 of 5 r r If the Principals have any questions regarding the disposition of Unclaimed Funds, in excess of $50.00, the Principals should contact the Controller or successor agency for the State of California. 23. DESTRUCTION OF RECORDS Escrow Holder is authorized to destroy or otherwise dispose of any and all documents, papers, instructions, correspondence and other materials pertaining to this escrow at the expiration of seven (7) years from the close of escrow or cancellation thereof. 24. GOOD FUNDS California Insurance Code Section 12413.1 regulates the disbursement of escrow and sub -escrow funds by title companies. The law requires that funds be deposited in the title company escrow account and available for withdrawal prior to disbursement. Funds received via wire transfer may be disbursed upon receipt. Funds received via cashier's checks or teller checks drawn on a California Bank may be disbursed on the next business day after the day of deposit. If funds are received by any other means, recording and/or disbursement may be delayed. STEWART TITLE OF CALIFORNIA, INC. shall not be responsible for accruals of interest or other charges resulting from compliance with the disbursement restrictions imposed by state law. If any check submitted is dishonored upon presentment for payment, you are authorized to notify all principals and/or their respective agents of such nonpayment. 25. CHANGE IN OWNERSHIP REPORT All parties are aware that a "Preliminary Change in Ownership Form" is to be filed with the office of the County Assessor upon recordation of all transfer documents involving real property. As an accommodation only, Escrow Holder shall provide necessary forms to the purchaser herein and in the event the completed form is deposited into escrow prior to close, Escrow Holder shall deliver same to County Assessor concurrently with recordation of the documents being recorded in this transaction. 26. APPLICATION OF PAYOFF FUNDS Should a check or wire be deemed unacceptable by lenders, creditors, lien holders or beneficiaries of Deeds of Trust, Escrow Holder is authorized to act on our behalf in requesting the funds, as well as any balance in an impound account, be applied towards the balance due. 27. INDEMNITY FOR ATTORNEY'S FEES AND COSTS In the event suit is brought by any party or parties to this escrow, including Stewart Title of California, Inc., as against each other or others, including, Stewart Title of California, Inc., which results in a dismissal of or judgment in favor of Stewart Title of California, Inc., the parties hereto agree to hold harmless, reimburse and indemnify Stewart Title of California, Inc., its officers and employees, from any loss, expenses, costs and attorney's fees incurred. THIS AGREEMENT IN ALL PARTS APPLIES TO, INURES TO THE BENEFIT OF, AND BINDS ALL PARTIES HERETO, THEIR HEIRS, LEGATEES, DEVISEES, ADMINISTRATORS, EXECUTORS, SUCCESSORS AND ASSIGNS, AND WHENEVER THE CONTEXT SO REQUIRES THE MASCULINE GENDER INCLUDES THE FEMININE AND NEUTER, AND THE SINGULAR NUMBER INCLUDES THE PLURAL. THESE INSTRUCTIONS AND ANY OTHER AMENDMENTS MAY BE EXECUTED IN ANY NUMBER OF COUNTERPARTS, EACH OF WHICH SHALL BE CONSIDERED AS AN ORIGINAL AND BE EFFECTIVE AS SUCH. MY/OUR INITIAL (S) HERETO CONSTITUTES INSTRUCTION TO ESCROW HOLDER OF ALL TERMS AND CONDITIONS CONTAINED IN THIS AND ALL PRECEDING PAGES AND FURTHER SIGNIFIES THAT I/WE HAVE READ AND UNDERSTAND THESE GENERAL PROVISIONS. INITIAL: / /- _/ Escrow Number: 80129266KW - General Provisions Page 5 of 5 r Stewart T M O ryf PPU title of california, inc. Date October 20, 2005 Escrow Officer Rhonda K. Oliver Escrow Number 80129266KW Property Address Dune Palms Rd/Hwy 111 La Quinta, California 92253 Inland Empire Division 78900 Avenue 47, Suite 112 La Quinta, CA 92253 760-771-4645 760-771-5854fax www.stcie.com NYSE: STC AMENDMENT TO ESCROW INSTRUCTIONS STEWART TITLE OF CALIFORNIA, INC. IS LICENSED BY THE STATE OF CALIFORNIA UNDER THE DEPARTMENT OF INSURANCE. LICENSE NO.388 ESCROW INSTRUCTIONS DATED OCTOBER 18, 2005 AND ANY AND ALL AMENDMENTS THERETO ARE HEREBY AMENDED IN THE FOLLOWING PARTICULARS ONLY: The close of escrow shall be on or before October 31, 2005 All other terms and conditions to remain the same. I have received a copy of these instructions as evidenced by my signature below. Seller(s): La Quinta Redevelopment Agency By: THOMAS P. GENOVESE, EXECUTIVE DIRECTOR Buyer(s): Stamko Development Co. LP Christine F. Clark President Escrow Number: 80129266KW-Am®dm.t to Escrow 1u NI(Lgl) Page I of I INFORM_ ON FOR REAL ESTATE 1099-S REI tT FILING ADD CHANGE DELETE RE: File Number 80129266KW Section 6045 of the Internal Revenue Code, as amended by the Tax Reform Act of 1986, requires the reporting of certain information to the IRS on real estate transactions. You are required by law to provide the settlement agent with your correct taxpayer identification number. If you do not provide the settlement agent with your correct taxpayer identification number, you may be subject to civil or criminal penalties imposed by law. SELLER NAME (If Sellers are husband and wife and file a joint return use one name and social security number only) Individual Seller Last Name or Complete Business Name: CITY OF LA QUINTA REDEVELOPMENT AGENCY Individual Seller First & Middle Name:: First Name Middle Name or Initial Taxpayer ID Type: (Circle one) Individual OR Business Social Security or Taxpayer ID Number: 95-3740431 MAILING ADDRESS AFTER CLOSE OF ESCROW: Street: P. O. BOX 1504 City: LA QUINTA State: CA Zip Code: 92247 PROPERTY INFORMATION: Description of Property (Street address or brief form of legal): Dune Palms Rd/Hwy I I I La Quinta, California 92253 TRANSACTION INFORMATION: Contract Sales Price: $ $2,714,445.00 If multiple sellers, each owner to complete a separate form and the following: My share of the sales price is: $ Percentage Owned: % IS THIS part of an EXCHANGE? (Circle Yes or No) YES NO CERTIFICATION ` Under penalties of perjury, I certify that the number shown on this form is my correct Taxpayer Identification Number and that the other information shown herein is correct. I acknowledge receipt of a of is form. DATE: SELLER'S SIGNATURE: CLOSING INFORMATION: (TO BE COMPLETED BY SETTLEMENT AGENT) CLOSING DATE: TAX PRORATION CREDIT RECEIVED BY THE SELLER: $ SETTLEMENT AGENT INFORMATION (TO BE COMPLETED BY SETTLEMENT AGENT) NAME: Stewart Title of California, Inc. MAILING ADDRESS: 78900 Avenue 47, Suite 112 CITY: La Quinta STATE: CA ZIP CODE: 92253 PHONE: (760) 771-4645 www.stcie.com TAXPAYER ID NUMBER: 95-4607898 SUBSTITUTE FORM 1099 This is important information and is being furnished to the Internal Revenue Service. If you are required to file a return, a negligence penalty or other sanction will be imposed on you if this item is required to be reported and the IRS determines that it has not been reported. En Numbc: 01391 KW. 1099-S Ramon Filing Page I of 1 Inland Empire �stewart , Sutton 78900 Avenue 47Suite 112 p." title of caltfomia, Inc. La Quints, CA 92253 760-771-4645 760-771-5854fax www.stde.com NYSE: STC Date: October 20, 2005 Escrow Officer Rhonda K. Oliver Escrow Number 80129266KW Property Address Dune Palms Rd/Hwy 111 La Quinta, California 92253 SELLER INFORMATION SHEET In order to expedite the closing of your transaction, please complete the following information, sign and return in the enclosed envelope. If you have any questions, please contact your Escrow Officer. Thank you for your assistance and prompt attention to this matter. You are authorized to contact the lenders listed below to obtain necessary statements. All lender charges for same shall be the sole responsibility of the undersigned regardless of consummation of this escrow. The undersigned are aware that there may be lender or payoff requirements necessitating a hold of funds at closing due to unused/open line of credit balance(s), verbal figures, unposted or uncleared payments. The period of time prior to funds being released could vary, depending on the existing lender and/or our ability to verify closure of the account. If you have any questions regarding your funds being held at the close of escrow please check with your escrow officer. FIRST MORTGAGE: SECOND MORTGAGE: Name: NONE Name: NONE Address: Address: Loan No. Phone No. Loan No. Phone No. FHA ( ) VA ( ) Conv. ( ) Approx. Bal. S Equity Line ( ) Approx. Bal. $ HOMEOWNERS ASSOCIATION? COUNTRY CLUB DUES? MUTUAL WATER COMPANY? YES ( ) NO ( ) IF YES, WHAT? NONE Unless otherwise furnished by seller with this form, Escrow Holder is instructed to order all documents as required by Civil Code Sections #1364, #1356 and #1368 (and related sections) from the Management Company for the Homeowners Association(s). All Association charges for same shall be the sole responsibility of the undersigned regardless of consummation of this escrow. NAME OF ASSOCIATION: Address: NAME OF ASSOCIATION: Address: Phone: Phone: LIST ADDITIONAL MORTGAGE LOANS, HOMEOWNERS ASSOCIATIONS, AND ANY OTHER BONDS OR ASSESSMENTS AFFECTING YOUR PROPERTY ON REVERSE SIDE. The undersigned declare under penalty of perjury that the foregoing is true, correct and complete. uinta edevelopment Z._Zi^ Tax Identification No. 95-3740431 By: f/ Social Security No.: THOMAS P. GENOVESE Title EXECUTIVE DIRECTOR E-Mail Address: Social Security No.: E-Mail Address: Ee N=m . eall9] M-la6 dwSEm-Sella Page I of I SELLER'S AFFIDAVIT OF NON -FOREIGN STATUS AND/OR CALIFORNIA RESIDENCY Escrow Number: 80129266KW (FOREIGN INVESTMENT IN REAL PROPERTY TAX ACT (FIRPTA) AND CALIFORNIA NONRESIDENT WITHHOLDING LAW) Section 1445 of the Internal Revenue Code provides that a transferee of a U.S. real property interest must withhold tax if the transferor is a "foreign person." Section 18662 of the California Revenue and Taxation Code provides that a transferee of a California real property interest must withhold tax if the transferor's proceeds will be disbursed to a financial intermediary of the transferor, or to the transferor with a last known street address outside of California. Section 26131 of the California Revenue and Taxation Code includes additional provisions for corporations. I understand that this certification may be disclosed to the Internal Revenue Service and to the California Franchise Tax Board by the transferee and that any false statement I have made herein (if an entity Transferor, on behalf of the Transferor) could be punished by fine, imprisonment or both. To inform the transferee that withholding of tax is not required upon the disposition of the U.S. and/or California real property interest located at: Dune Palms Rd/Hwy 111, La Quinta, California 92253. I hereby certify the following (if an entity transferor, on behalf of the transferor): FEDERAL LAW (FIRPTA) THIS SECTION FOR INDIVIDUAL TRANSFEROR: I. I am not a nonresident alien for purposes of U.S. income taxation; 2. My U.S. taxpayer identifying number (Social Security number) is 3. My home address is ;and THIS SECTION FOR CORPORATION, PARTNERSHIP, TRUST, OR ESTATE TRANSFEROR: 1. CITY OF LA QUINTA REDEVELOPMENT AGENCY [Name of Transferor]("Transferor") is not a foreign corporation, foreign partnership, foreign trust, or foreign estate (as those terms are defined in the Internal Revenue Code and Income Tax R9gulations); 2. Transferor's U.S. employer identification number is 95-3740431 3. Transferor's Office address is P. O. BOX 1504, LA QUINTA, CA 92247 ; and 4. I, the undersigned individual, declare that I have authority to sign this document on behalf of the Transferor. Under penalties of perjury I declare that I have examined this certification, and to the best of my knowledge and verify it is true, correct and complete. Date: Signature Y, Telephone: 760-777-7063 Typed or printed name THOMAS P. GENOVESE Title [if signed on behalf EXECUTIVE DIRECTOR of an entity transferor] CITY OF LA QUINTA REDEVELOPMENT AGENCY CALIFORNIA LAW THIS SECTION FOR INDIVIDUAL TRANSFEROR I am a ❑ married, ❑ single resident of California and reside at the address shown below; My U.S. taxpayer identifying number (Social Security number) is, My home address is ; and THIS SECTION FOR CORPORATION TRANSFEROR: 1. CITY OF LA QUINTA REDEVELOPMENT AGENCY [Name of Transferor] ("Transferor") is a corporation qualified to do business in California or has a permanent place of business in California at the address shown below; 2. Transferor's California corporation number issued by the Secretary of State is 95-374043 3. Transferor's office address is P. O. BOX 1504, LA QUINTA, CA 92247 ; and 4. I, the undersigned individual, declare that I have authority to sign this document on behalf of the Transferor. Under penalties of perjury I declare that I have examined this certification and to the best of my knowledge and belief it is true, correct and complete. Date: Signature: Telephone: 760-777-7063 Typed or printed name THOMAS P. GENOVESE Title [ifsigned on behalf EXECUTIVE DIRECTOR of an entity transferor] CITY OF- LA QUINTA REDEVELOPMENT AGENCY IMPORTANT NOTICE: An affidavit should be signed by each individual or entity transferor to whom or to which it applies. Before you sign, any questions relating to the legal sufficiency of this form, or to whether it applies to a particular transaction, or to the definition of any of the terms used, should be referred to an attorney, certified public accountant, other professional tax advisor, the Internal Revenue Service, or the California Franchise Tax Board.