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Culp/Jefferson Purchase 04AGREEMENT FOR PURCHASE AND SALE AND ESCROW INSTRUCTIONS BY AND BETWEEN ELAINE LOUISE CULP AND ROBERT CULP ("SELLER") AND CITY OF LA QUINTA ("BUYER") 119/015610-0008 494795.02 a05/04/04 TABLE OF CONTENTS Page 1. PROPERTY....................................................................................................................1 1.1 Improvements.....................................................................................................1 1.2 Fixtures and Personal Property.....................................................0..........0..........1 2. PURCHASE PRICE AND RELOCATION ASSISTANCE............................................2 2.1 Amount................................................................................................................. 2 2.2 Payment of Purchase Price....................................................................................2 3. ESCROW..........................................................................................................................2 3.1 Opening of Escrow...............................................................................................2 3.2 Escrow Instructions...............................................................................................3 4. TITLE MATTERS............................................................................................................ 3 5. CLOSE OF ESCROW .................... .................................................................................. 4 5.1 Close of Escrow; Closing Date............................................................................. 4 5.2 Recordation; Release of Funds and Documents...................................................4 6. DELIVERY OF DOCUMENTS REQUIRED FROM BUYER AND SELLER.............4 6.1 Buyer's Obligations..............................................................................................4 6.2 Seller's Obligations...............................................................................................5 7. TITLE INSURANCE POLICY........................................................................................ 5 7.1 Title Policy............................................................................................................5 7.2 Payment for Title Policy....................................................................................... 6 8. REAL PROPERTY TAXES AND ASSESSMENTS......................................................6 9. CONDITIONS PRECEDENT TO CLOSING.................................................................6 9.1 Conditions Precedent to Buyer's Obligations.......................................................6 9.2 Conditions Precedent to Seller's Obligations.......................................................7 10. POSSESSION..................................................................................................................7 11. ALLOCATION OF COSTS.............................................................................................7 11.1 Buyer's Costs........................................................................................................ 7 11.2 Seller's Costs........................................................................................................7 119/015610-0008 494795.02 a05/04/04 _1_ Page 12. CONDEMNATION.......................................................................................................... 7 13. HAZARDOUS MATERIALS.........................................................................................7 14. COVENANTS OF SELLER.............................................................................................8 15. MISCELLANEOUS.........................................................................................................8 15.1 Assignment........................................................................................................... 8 15.2 Notices...................................................................................................................9 15.3 Fair Meaning.........................................................................................................9 15.4 Headings...............................................................................................................9 15.5 Choice of Laws; Litigation Matters...................................................................... 9 15.6 Nonliability of Buyer Officials.............................................................................9 15.7 Gender; Number..................................................................................................10 15.8 Survival...............................................................................................................10 15.9 Time of Essence..................................................................................................10 15.10 Waiver or Modification.......................................................................................10 15.11 Broker's Fees......................................................................................................10 15.12 Duplicate Originals.............................................................................................10 15.13 Severability.........................................................................................................10 15.14 Exhibits...............................................................................................................10 15.15 Authority............................................................................................................. 11 15.16 Entire Agreement; Amendment..........................................................................11 EXHIBITS Exhibit A Legal Description of Property Exhibit B Form of Grant Deed Exhibit C Form of Affidavit of Non -Foreign Entity Exhibit D Bill of Sale Exhibit E Escrow Instructions Exhibit F Special Escrow Instructions 119/015610-0008 494795.02 a05/04/04 —11— AGREEMENT FOR PURCHASE AND SALE AND ESCROW INSTRUCTIONS THIS AGREEMENT FOR PURCHASE AND SALE AND ESCROW INSTRUCTIONS ("Agreement") is made and entered into as of May _, 2004 ("Effective Date") by and between ELAINE LOUISE CULP AND ROBERT LORIS CULP, HUSBAND AND WIFE, AS JOINT TENANTS, (collectively, "Seller") and the CITY OF LA QUINTA, a California municipal corporation ("Buyer"). RECITALS: A. Seller is the owner of that certain real property located in the City of La Quinta, County of Riverside, State of California, more particularly described in the legal description attached hereto as Exhibit "A" (the "Real Property") improved with a residential dwelling and appurtenances (the "Improvements"). B. Buyer desires to purchase the Property (as that term is defined below) from Seller, and Seller desires to sell the Property to Buyer, on the terms and conditions set forth herein. C. On July 29, 2003, Buyer issued an offer letter to Seller pursuant to Government Code Section 7267.2 in order to acquire the Real Property for purposes of widening Jefferson Street. Buyer had previously issued its notice of intent to appraise the Real Property and had caused an appraisal to be prepared in accordance with Government Code Section 7267.1(b). On December 29, 2003, Buyer sent a notice of public hearing pursuant to Code of Civil Procedure Section 1240.030 relating to a proposed resolution of necessity. This Agreement is entered into in accordance with Government Code Section 7267.1(a) lieu of condemnation proceedings under Code of Civil Procedure Section 1245.210, et seq. AGREEMENT: NOW, THEREFORE, in consideration of the foregoing recitals and mutual covenants herein contained, the parties hereto agree as follows: 1. PROPERTY. Subject to all of the terms, conditions and provisions of this Agreement, and for the consideration herein set forth, Seller hereby agrees to sell to Buyer and Buyer hereby agrees to purchase from Seller the Real Property and Seller hereby agrees to sell and Buyer hereby agrees to buy the following: 1.1 Improvements. Seller's interest in and to the Improvements and all tenements, hereditaments and appurtenances thereto, subject to the Permitted Exceptions (as that term is defined in Section 7.1); 1.2 Fixtures and Personal Property. Any and all fixtures and fittings that are attached to the Real Property and Improvements, all existing electrical, mechanical, lighting, plumbing and heating fixtures, ceiling fans, fireplace inserts, gas logs and grates, solar systems, built-in 119/015610-0008 494795.02 a05/04/04 -1- appliances, window and door screens, awnings, shutters, window coverings, attached floor coverings, television antennas, private integrated telephone systems, air coolers/conditioners, pool/spa equipment, garage door openers/remote controls, mailbox, in -ground landscaping, trees/shrubs, water softeners, water purifiers, and security systems/alarms (collectively, the "Fixtures and Personal Property"). However, Buyer and Seller agree that Seller may remove the following items from the Property: (1) 2 custom toilet seats; (2) mirrors; (3) ceiling fans; and (4) a medicine cabinet. Seller agrees to replace the ceiling fans with a light fixture, in order to ensure that there is light in the building. The Real Property, the Improvements, and the Personal Property are hereinafter collectively referred to as the "Property." 2. PURCHASE PRICE AND RELOCATION ASSISTANCE. Amount. The purchase price which Seller agrees to accept and Buyer agrees to pay for the Property is the sum of THREE HUNDRED ELEVEN THOUSAND THREE HUNDRED SIXTY-THREE DOLLARS AND TWENTY-TWO CENTS ($311,363.22) ("Purchase Price"). The parties agree that the Purchase Price reflects the full payment that Seller will receive from Buyer for the Property, and is inclusive of any claims for the City's acquisition of the Property, loss of goodwill, lost profits and lost business income. Seller waives all and any rights it may have to seek additional compensation for such claims. Seller agrees that the compensation set forth in this paragraph shall represent full and complete compensation for all claims associated with the Property and Seller's relocation therefrom, and Seller waives Seller's rights to seek any further compensation, expenses, costs, or benefits from Buyer. The parties agree that the Purchase Price is inclusive of any and all claims for relocation assistance pursuant to State Relocation Assistance Law (California Government Code Sections 7260 et seq.; Relocation Assistance and Real Property Acquisition Guidelines, California Administrative Code Title 25) ("Relocation Benefits"). 2.1 Payment of Purchase Price. Within ten (10) days of the open of escrow in this matter, Buyer will advance to Seller the amount of ELEVEN THOUSAND THREE HUNDRED SIXTY-THREE DOLLARS AND TWENTY-TWO CENTS ($11,363.22.) (the "Advance"). The Advance shall be considered an advance payment of a portion of the Purchase Price, and shall be refunded in its entirety, without interest, to Buyer in the event the escrow does not close, and title to the Property consistent with the provisions of Paragraph 4 hereunder does not pass to Buyer. On or before 5:00 p.m. on the business day preceding the "Closing Date" (as that term is defined in Section 5.1) or such earlier time as required by "Escrow Holder" in order to close "Escrow" (as those terms are defined in Section 3.1) on the Closing Date, Buyer shall deposit with Escrow Holder the Purchase Price, less the Advance. 3. ESCROW. 3.1 Opening of Escrow. Closing of the sale of the Property shall take place through an escrow ("Escrow") to be established within three (3) business days after the execution of this Agreement by the parties hereto, with Chicago Title ("Escrow Holder") at its office located at 72980 Fred Waring Drive, Suite B, Palm Desert, California, 92260. The opening of the Escrow (the "Opening of Escrow") shall be deemed to be the date that a fully executed copy of this 119/015610-0008 494795.02 a05/04/04 -2- Agreement is delivered to the Escrow Holder. Escrow Holder is instructed to notify Buyer and Seller in writing of the date of the Opening of Escrow. 3.2 Escrow Instructions. This Agreement, once deposited in Escrow, shall constitute the joint escrow instructions of Buyer and Seller to Escrow Holder. Additionally, if Escrow Holder so requires, Buyer and Seller agree to execute the form of escrow instructions that Escrow Holder customarily requires in real property escrows administered by it. In the event of any conflict or inconsistency between Escrow Holder's standard instructions and the provisions of this Agreement, the provisions of this Agreement shall supersede and be controlling. The parties additionally agree to the Escrow Holder's standard terms, a copy of which is attached hereto as Exhibit E and to the additional supplemental instructions contained in Exhibit F. 4. TITLE MATTERS. Buyer shall obtain a preliminary title report prepared by Chicago Title ("Title Company") describing the state of title of the Property together with copies of all underlying documents (collectively, the "Preliminary Title Report"). Buyer may, at its sole cost and expense, obtain a current survey of the Property (the "Survey"). Notwithstanding anything herein to the contrary, Seller shall be obligated to remove all monetary encumbrances against the Property excluding non -delinquent real property taxes (except as otherwise provided for in Section 8 below). Buyer shall notify Seller in writing of any objections Buyer may have to title exceptions contained in the Preliminary Title Report or matters shown on the Survey (if Buyer has obtained) no later than the date which is fifteen (15) days after the later of (i) its receipt of the Preliminary Title Report or (ii) its receipt of the Survey ("Buyer's Objection Notice"). Buyer's approval or disapproval of the matters set forth in the Preliminary Title Report (and the Survey, if applicable) may be granted or withheld in Buyer's sole and absolute discretion. Buyer's failure to provide Seller with a Buyer's Objection Notice within said period shall constitute Buyer's approval of all exceptions to title shown on the Preliminary Title Report and all matters shown on the Survey (if Buyer has obtained). Seller shall have a period of five (5) days after receipt of Buyer's Objection Notice in which to deliver written notice to Buyer ("Seller's Notice") of Seller's election to either (i) agree to remove the objectionable items on the Preliminary Title Report or Survey prior to the Close of Escrow, or (ii) decline to remove any such title exceptions or Survey matters and terminate Escrow and the obligations of Buyer and Seller to purchase and sell the Property under this Agreement. Seller's failure to provide Buyer with Seller's Notice within said period shall constitute Seller's election to remove the objectionable items on the Preliminary Title Report. If Seller notifies Buyer of its election to terminate rather than remove the objectionable items on the Preliminary Title Report or Survey, Buyer shall have the right, by written notice delivered to Seller within five (5) days after Buyer's receipt of Seller's Notice, to agree to accept the Property subject to the objectionable items, in which event Seller's election to terminate shall be of no effect, and Buyer shall take title at the Close of Escrow subject to such objectionable items without any adjustment to or credit against the Purchase Price. All exceptions to title shown on the Preliminary Title Report, other than those which Seller may agree to remove pursuant to this Section 3.2, shall be deemed to have been approved by Buyer unless Seller is notified otherwise in writing. Upon the issuance of any amendment or supplement to the Preliminary Title Report which adds additional exceptions, including any survey exceptions, the foregoing right of review and approval shall also apply to said amendment or supplement. The process set forth above for Buyer's review and Seller's response shall apply to any review and response with 119/015610-0008 494795.02 a05/04/04 -3- respect to any amendment or supplement to the Preliminary Title Report, and the Closing shall be extended for such period as is necessary to allow for that review and response process to be completed. 5. CLOSE OF ESCROW. 5.1 Close of Escrow; Closing Date. Provided that all of the conditions of this Agreement precedent to the "Close of Escrow" (as hereinafter defined) as set forth in Section 9 below have been satisfied (or waived by the appropriate party) prior to or on the Closing Date, the Closing of this transaction for the sale and purchase of the Property shall take place on June 4, 2004 ("Outside Closing Date"). Notwithstanding the foregoing, if Buyer and Seller agree to advance the Closing, and so long as all of "Buyer's Conditions to Closing" and all of "Seller's Conditions to Closing" (as those terms are defined in Section 9) have been satisfied (or waived by the appropriate party), Seller and Buyer may elect to authorize the Closing before the Outside Closing Date. The terms "Close of Escrow", "Closing Date" and the "Closing" are used herein to mean the time Seller's grant deed conveying fee title to the Property to Buyer is recorded in the Official Records of the Office of the County Recorder of Riverside ("Official Records"). If Escrow is not in a condition to close by the Outside Closing Date, either party not then in default hereunder may, upon five (5) days advance written notice to the other party and Escrow Holder, elect to terminate this Agreement and the Escrow. No such termination shall release either party then in default from liability for such default. If neither party so elects to terminate this Agreement and the Escrow, Escrow Holder shall close the Escrow as soon as possible. 5.2 Recordation: Release of Funds and Documents. 5.2.1 Escrow Holder is directed, on the Closing Date, to record in the Official Records, the following documents in the order listed: (i) the grant deed (in the form attached hereto as Exhibit `B") transferring title to the Property to Buyer ("Grant Deed"); and (ii) such other and further documents as may be directed jointly by Buyer and Seller. 5.2.2 Upon the Closing, Escrow Holder shall deliver (i) the Purchase Price, less any amount to pay property taxes and/or assessments allocable to Seller pursuant to Section 8, and (ii) conformed copies of all recorded documents to both Buyer and Seller. 5.2.3 Escrow Holder is authorized to request from Seller a fully executed copy of the Grant Deed at any time prior to the Close of Escrow, for submission to Buyer for the sole purpose of Buyer's acceptance of same, in order to place such Grant Deed in a form ready for recording at the Close of Escrow. If Buyer receives such an executed Grant Deed prior to Close of Escrow, Buyer is authorized only to affix its acceptance thereon, or perform such other acts as are required to place the Grant Deed in a recordable form, but may not record the Grant Deed at any time prior to the Close of Escrow. 6. DELIVERY OF DOCUMENTS REQUIRED FROM BUYER AND SELLER. 6.1 Buyer's Obli atg_ ions. Buyer agrees that on or before 5:00 p.m. of the last business day immediately preceding the Closing Date, Buyer shall deposit or cause to be deposited with Escrow Holder the following: 119/015610-0008 494795.02 a05/04/04 -4- (a) the Purchase Price; and (b) any and all additional funds, instruments or other documents required from Buyer (executed and acknowledged where appropriate) as may be reasonably necessary in order for the Escrow Holder to comply with the terms of this Agreement. 6.2 Seller's Obligations. Seller agrees that on or before 5:00 p.m. of the last business day immediately preceding the Closing Date, Seller shall deposit or cause to be deposited with Escrow Holder each of the following: (a) the executed and acknowledged Grant Deed, subject only to the Permitted Exceptions (defined hereafter), and any prior submission to the City for acceptance, as provided in Paragraph 5.2.3 above; (b) a Certificate of Non -Foreign Status (the "Non -Foreign Affidavit") executed and acknowledged by Seller in the form attached hereto as Exhibit "C"; (c) a Bill of Sale (the "Bill of Sale") executed and acknowledged by Seller in the form attached hereto as Exhibit "D"; and (d) all other funds, items, and instruments required from Seller (executed and acknowledged where appropriate) as may be reasonably necessary in order for Escrow Holder to comply with the provisions of this Agreement. 7. TITLE INSURANCE POLICY. 7.1 Title Policy. At the Closing Date, the Title Company, as insurer, shall issue a CLTA owner's standard coverage policy of title insurance ("Title Policy"), in favor of Buyer, as insured, with liability in the amount of the Purchase Price, subject to the following (the "Permitted Exceptions"): (a) non -delinquent real property taxes, subject to Seller's obligations to pay certain taxes pursuant to Section 8 below; (b) covenants, conditions, restrictions and reservations of record that do not interfere with the Buyer's proposed use of the Property, as determined in the sole and absolute discretion of Buyer; (c) easements or rights -of -way over the Property for public or quasi -public utility or public street purposes; (d) title exceptions approved or deemed approved by Buyer pursuant to Section 3.2 above; (e) any other exceptions approved by Buyer; and (f) the standard printed conditions and exceptions contained in the CLTA standard owner's policy of title insurance regularly issued by the Title Company. 119/015610-0008 494795.02 a05/04/04 -5- 7.2 Payment for Title Policy. Buyer shall be responsible for the charges for the Title Policy with coverage up to the amount of the Purchase Price. Buyer shall pay any additional coverage or endorsements it requests. Buyer may, at its election and expense, request an ALTA extended policy of title insurance. Buyer shall also pay for the Survey, if applicable. 8. REAL PROPERTY TAXES AND ASSESSMENTS. Upon Buyer's acquisition of fee title to the Property, the Property will be exempt from the payment of property taxes due to Buyer's status as a public agency. Seller shall be responsible for paying (through Escrow at Closing) all real and personal property taxes and assessments which are of record as of the Closing Date and/or have accrued against the Property prior to (and including) the Closing Date (notwithstanding whether such taxes and/or assessments are due and payable as of the Closing Date). Buyer hereby acknowledges and agrees that Buyer is obligated to completely payoff, at Closing, any amounts outstanding under the City of La Quinta Assessment District 2000-1. Seller shall be responsible for paying for all real or personal property taxes or assessments assessed against the Property after the Closing for any period prior to the Closing. 9. CONDITIONS PRECEDENT TO CLOSING. 9.1 Conditions Precedent to Buyer's Obligations. The obligations of Buyer under this Agreement to purchase the Property and close the Escrow shall be subject to the satisfaction or signed written waiver by Buyer of each and all of the following conditions precedent (collectively, "Buyer's Conditions to Closing"): (a) on the Closing Date, the Title Company shall be irrevocably committed to issue the Title Policy pursuant to Section 7 above insuring fee title to the Property as being vested in Buyer, subject only to the Permitted Exceptions; (b) Escrow Holder holds all instruments and funds required for the Closing and will deliver to Buyer the instruments and funds, if any, accruing to Buyer pursuant to this Agreement; (c) except as otherwise permitted by this Agreement, all representations and warranties by the Seller in this Agreement shall be true on and as of the Closing Date as though made at that time and all covenants of Seller pursuant to this Agreement shall have been fulfilled by the Closing Date; (d) Seller is not in material default of any term or condition of this Agreement; (e) as of the Closing Date, no judicial or administrative challenges have been presented or filed against: (1) the City's actions in proceeding with the widening of Jefferson Street; (2) the Addendum certified by the City Council on July 15, 2003, to the Initial Study/Mitigation Negative Declaration for Jefferson Street Improvements originally certified by the City of La Quinta on May 18, 1999, State Clearinghouse Number 99031046, or against the any of the findings made in the Addendum; and 119/015610-0008 494795.02 a05/04/04 -6- In the event that any of Buyer's Conditions to Closing are not satisfied, deemed satisfied, or waived in a writing signed by Buyer prior to the expiration of the applicable period for satisfaction or waiver, Buyer may terminate this Agreement. 9.2 Conditions Precedent to Seller's Obligations._ The obligations of Seller under this Agreement shall be subject to the satisfaction or signed written waiver by Seller of each and all of the following conditions precedent ("Seller's Conditions to Closing"): (a) Escrow Holder holds the Purchase Price and all other instruments and funds required for the Closing and will deliver to Seller the instruments and funds, including but not limited to the Purchase Price (less any offsets again Seller specifically provided for hereunder) accruing to Seller pursuant to this Agreement; (b) except as otherwise permitted by this Agreement, all representations and warranties by the Buyer in this Agreement shall be true on and as of the Closing Date as though made at that time and all covenants of Buyer pursuant to this Agreement shall have been fulfilled by the Closing Date; and (c) Buyer is not in material default of any term or condition of this Agreement. In the event that any of Seller's Conditions to Closing are not satisfied, deemed satisfied, or waived in a writing signed by Seller prior to the expiration of the applicable period for satisfaction or waiver, Seller may terminate this Agreement. 10. POSSESSION. Possession of the Property shall be delivered by Seller to Buyer on the Closing Date, subject only to the Permitted Exceptions. 11. ALLOCATION OF COSTS. 11.1 Buyer's Costs. Buyer shall pay all closing costs associated with this Agreement and the conveyance of the Property from Seller to Buyer, including any and all escrow and title fees, recording fees, documentary transfer tax, the premium for the Title Policy (plus any additional fee for ALTA extended coverage and/or title endorsements requested by Buyer), and Buyer's own attorney's fees in connection with this Agreement and the transactions contemplated hereby. 11.2 Seller's Costs. Seller shall pay Seller's own attorney's or appraisers fees, if any, in connection with this Agreement and the transactions contemplated hereby. 12. CONDEMNATION. In the event that, prior to the Close of Escrow, any governmental entity (other than the City) shall commence any proceedings of or leading to eminent domain or similar type proceedings to take all or any portion of the Property, Buyer or Seller shall promptly meet and confer in good faith to evaluate the effect of such action on the purposes of this Agreement. 13. HAZARDOUS MATERIALS. To the best of Seller's knowledge, the Property has not at any time been used for the purposes of storing, manufacturing, releasing or dumping Hazardous 119/015610-0008 494795.02 a05/04/04 -7- Materials. For purposes of this Agreement, the term "Hazardous Materials" shall mean (1) hazardous wastes, hazardous materials, hazardous substances, hazardous constituents, toxic substances or related materials, whether solids, liquids or gases, including, but not limited to, substances deemed as "hazardous wastes," "hazardous materials," "hazardous substances," "toxic substances," "pollutants," "contaminants," "radioactive materials," or other similar designations in, or otherwise subject to regulation under, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended ("CERCLA"), 42 U.S.C. § 9601 et seq.; the Toxic Substance Control Act ("TSCA"), 15 U.S.C. § 2601 et seq.; the Hazardous Materials Transportation Act, 49 U.S.C. § 1802; the Resource Conservation and Recovery Act ("RCRA"), 42 U.S.C. § 9601, et seq.; the Clean Water Act ("CWA"), 33 U.S.C. § 1251 et seq.; the Safe Drinking Water Act, 42 U.S.C. § 300 et seq.; the Clean Air Act ("CAA"), 42 U.S.C. § 7401 et seq.; the Hazardous Waste Control Law, California Health and Safety Code § 25025 et seq., the Carpenter -Presley -Tanner Hazardous Substance Account Act, California Health and Safety Code, Division 20, Chapter 6.8, the Hazardous Materials Release Response Plans and Inventory Act, California Health and Safety Code, Division 20, Chapter 6.95, The Underground Storage of Hazardous Substances Act, California Health and Safety Code, Division 20, Chapter 6.7, the Porter -Cologne Act, California Water Code § 13050 et seq. and in any permits, licenses, approvals, plans, rules, regulations or ordinances adopted, or other criteria and guidelines promulgated pursuant to the preceding laws or other similar federal, state or local laws, regulations, rules or ordinances now or hereafter in effect relating to environmental matters (collectively the "Environmental Laws"); and (ii) any other substances, constituents or wastes subject to any applicable federal, state or local law, regulation, ordinance or common law doctrine, including any Environmental Law, now or hereafter in effect, including, but not limited to, (A) petroleum, (B) refined petroleum products, (C) waste oil, (D) waste aviation or motor vehicle fuel, (E) asbestos, (F) lead in water, paint or elsewhere, (G) radon, (H) polychlorinated biphenyls (PCB's) and (I) ureaformaldehyde. 14. COVENANTS OF SELLER. Seller agrees that during the period between the Effective Date of this Agreement and the Closing Date: (a) Seller shall maintain the Property in not less than the state of repair as that existing on the Effective Date (excepting ordinary wear and tear); (b) Seller shall not convey, grant, lease, assign, mortgage, hypothecate, encumber, or otherwise transfer (on or off record) the Property or any interest therein; (c) Prior to Closing, Seller shall maintain Seller's existing insurance, if any, on the Property; and (d) Prior to the Closing, Seller shall not alter the physical condition of the Property or introduce or release, or permit the introduction or release, of any Hazardous Materials in, from, under, or on the Property. 15. MISCELLANEOUS. 15.1 Assignment. This Agreement shall be binding upon and shall inure to the benefit of Buyer and Seller and their respective heirs, personal representatives, successors and assigns. 119/015610-0008 494795.02 a05/04/04 -8- Neither party to this Agreement may assign this Agreement or any interest or right hereunder or under the Escrow without the prior written consent and approval of the other party, which consent and approval may be withheld in the sole and absolute discretion of either party. No provision of this Agreement is intended nor shall in any way be construed to benefit any party not a signatory hereto or to create a third party beneficiary relationship. 15.2 Notices. All notices under this Agreement shall be effective upon personal delivery, via facsimile so long as the sender receives confirmation of successful transmission from the sending machine, or three (3) business days after deposit in the United States mail, registered, certified, postage fully prepaid and addressed to the respective parties as set forth below or as to such other address as the parties may from time to time designate in writing: To Seller: Elaine Louise Culp Robert Loris Culp 46200 Jefferson Street La Quinta, California 92253 (760) 899-7443 To Buyer: City of La Quinta 78-495 Calle Tampico La Quinta, CA 92253 Attn: City Manager Facsimile No.: (760) 777-7101 Copy to: Rutan & Tucker, LLP 611 Anton Boulevard, Suite 1400 Costa Mesa, California 92628-1950 Attn: M. Katherine Jenson, Esq. Facsimile No.: (714) 546-9035 15.3 Fair Meaning. This Agreement shall be construed according to its fair meaning and as if prepared by both parties hereto. 15.4 Headings. The headings at the beginning of each numbered Section of this Agreement are solely for the convenience of the parties hereto and are not a part of this Agreement. 15.5 Choice of Laws, Litigation Matters. This Agreement shall be governed by the internal laws of the State of California and any question arising hereunder shall be construed or determined according to such law. The Municipal and Superior Courts of the State of California in and for the County of Riverside, or such other appropriate court in such county, shall have exclusive jurisdiction of any litigation between the parties concerning this Agreement. Service of process on Buyer shall be made in accordance with California law. Service of process on Seller shall be made in any manner permitted by California law and shall be effective whether served inside or outside California. 15.6 Nonliabilit o� f Buyer Officials. No officer, official, member, employee, agent, or representatives of Buyer shall be liable for any amounts due hereunder, and no judgment or 119/015610-0008 494795.02 a05/04/04 -9- execution thereon entered in any action hereon shall be personally enforced against any such officer, official, member, employee, agent, or representative. 15.7 Gender; Number. As used in this Agreement, masculine, feminine, and neuter gender and the singular or plural number shall be deemed to include the others wherever and whenever the context so dictates. 15.8 Survival. This Agreement and all covenants to be performed after the Closing, and, except as otherwise set forth herein, all representations and warranties contained herein, shall survive the Closing Date and shall remain a binding contract between the parties hereto. 15.9 Time of Essence. Time is of the essence of this Agreement and of each and every term and provision hereof, it being understood that the parties hereto have specifically negotiated the dates for the completion of each obligation herein. 15.10 Waiver or Modification. A waiver of a provision hereof, or modification of any provision herein contained, shall be effective only if said waiver or modification is in writing, and signed by both Buyer and Seller. No waiver of any breach or default by any party hereto shall be considered to be a waiver of any breach or default unless expressly provided herein or in the waiver. 15.11 Broker's Fees. Seller and Buyer represent and warrant to the other that neither Buyer nor Seller has employed any broker and/or finder to represent its interest in this transaction. Each party agrees to indemnify and hold the other free and harmless from and against any and all liability, loss, cost, or expense (including court costs and reasonable attorney's fees) in any manner connected with a claim asserted by any individual or entity for any commission or finder's fee in connection with the conveyance of the Property arising out of agreements by the indemnifying party to pay any commission or finder's fee. 15.12 Duplicate Originals. This Agreement may be executed in any number of duplicate originals, all of which shall be of equal legal force and effect. 15.13 Severability. If any term, covenant or condition of this Agreement or the application thereof to any person, entity, or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Agreement, or the application of such term, covenant, or condition to persons, entities, or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby and each term, covenant or condition of this Agreement shall be valid and enforceable to the fullest extent permitted by law. 15.14 Exhibits. The following exhibits are attached hereto and incorporated herein by this reference: Exhibit "A" Legal Description of Property Exhibit "B" Grant Deed Exhibit "C" Non -Foreign Affidavit Exhibit "D" Bill of Sale Exhibit "E" Escrow Instructions Exhibit "F" Special Escrow Instructions 119/015610-0008 494795.02 a05/04/04 -10- 15.15 Authority. The person(s) executing this Agreement on behalf of each of the parties hereto represent and warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said party, (iii) by so executing this Agreement such party is formally bound to the provisions of this Agreement, and (iv) the entering into this Agreement does not violate any provision of any other agreement to which such party is bound. 15.16 Entire Agreement, Amendment. Except as set forth above, this Agreement and the exhibits incorporated herein contain the entire agreement of Buyer and Seller with respect to the matters contained herein, and no prior agreement or understanding pertaining to any such matter shall be effective for any purpose. No provisions of this Agreement may be amended or modified in any manner whatsoever except by an agreement in writing signed by duly authorized officers or representatives of each of the parties hereto. [END -- SIGNATURE PAGE FOLLOWS] 119/015610-0008 494795.02 a05/04/04 -11- IN WITNESS WHEREOF, Buyer and Seller each hereby represents that it has read this Agreement, understands it, and hereby executes this Agreement to be effective as of the day and year first written above. ATTEST: June Greek, City CIA APPROVED FO RUTAN & CKE , L By: 4r. M. katheride Jens n, City Attorney SELLER: ELAINE LOUISE CULP ROBERT LORIS CULP BUYER: CITY OF LA QUINTA, a California municipal co ion �Y:� [end of signatures] 119/015610-0008 494795.02 a05/04/04 -12- IN WITNESS WHEREOF, Buyer and Seller each hereby represents that it has read this Agreement, understands it, and hereby executes this Agreement to be effective as of the day and year first written above. ATTEST: June Greek, City Clerk APPROVED AS TO FORM: RUTAN & TUCKER, LLP 0 M. Katherine Jenson, City Attorney SELLER: BUYER: CITY OF LA QUINTA, a California municipal corporation 0 [end of signatures] 119/015610-0008 -12- 494795.02 a05/04/04 Chicago Title agrees to act as Escrow Holder in accordance with the terms of this Agreement that are applicable to it. CHICAGO TITLE By: _ Name: Its: 119/015610-0008 -13 - 494795.02 a05/04/04 EXHIBIT "A" LEGAL DESCRIPTION OF PROPERTY The real property and improvements thereon situated in the State of California, County of Riverside, City of La Quinta, are described as follows: Lot 38 of Tract 2190, As Per Map Recorded in Book 41, Pages 55 thru 57 of Maps, In the Office of the County Recorder of Said County. APN 649-090-002 119/015610-0008 494795.02 a05/04/04 EXHIBIT "B" FORM OF GRANT DEED [SEE ATTACHED] 119/015610-0008 494795.02 a05/04/04 RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: CITY OF LA QUINTA 78-495 Calle Tampico La Quinta, CA 92253 Attn: City Manager SPACE ABOVE THIS LINE FOR RECORDER'S USE (Exempt from Recordation Fee per Gov. Code § 6103) GRANT DEED FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, ELAINE LOUISE CULP AND ROBERT LORIS CULP, HUSBAND AND WIFE, AS JOINT TENANTS, hereby grant to the CITY OF LA QUINTA, a California municipal corporation, that certain real property located in the City of La Quinta, County of Riverside, State of California, legally described on Attachment No. 1, which is attached hereto, and incorporated herein by this reference, subject to all matters of record. Dated: , 2004 ELAINE LOUISE CULP ROBERT LORIS CULP 119/015610-0008 2 494795.02 a05/04/04 STATE OF CALIFORNIA ) ) ss COUNTY OF ) On , before me, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. Witness my hand and official seal. Notary Public [SEAL] STATE OF CALIFORNIA ) ) ss COUNTY OF ) On , before me, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. Witness my hand and official seal. Notary Public [SEAL] 119/015610-0008 494795.02 a05/04/04 ATTACHMENT NO. 1 LEGAL DESCRIPTION OF PROPERTY The real property and improvements thereon situated in the State of California, County of Riverside, City of La Quinta, are described as follows: Lot 38 of Tract 2190, As Per Map Recorded in Book 41, Pages 55 thru 57 of Maps, In the Office of the County Recorder of Said County. APN 649-090-002 194795.0 aO5 08 Attachment 1 to Grant Deed 494795.02 a05/04/04 CERTIFICATE OF ACCEPTANCE THIS IS TO CERTIFY that the interest in real property conveyed by a Grant Deed dated , from Elaine Louise Culp and Robert Loris Culp, Husband and Wife, as Joint Tenants, to the City of La Quinta, a municipal Corporation, ("City") is hereby accepted by the City by the signature of the undersigned agent on behalf of the City pursuant to the authority conferred upon him by the Resolution No. 2003-083, adopted on September 16, 2003, and that the City, as the Grantee, by its said duly authorized agent, hereby consents to the recordation thereof. DATED: CITY OF LA QUINTA, a Municipal Corporation Bv: Name: Thomas P. Genovese City Manager, City of La Quinta I HEREBY ATTEST to the authenticity of the foregoing signature and to the said adoption of the said Resolution of his general authority to so act and certify that said authority has not been revoked by any subsequent Resolution or order of the City. DATED: June S. Greek, City Clerk, City of La Quinta 4 4795.02 a05 08 Attachment 1 to Grant Deed 494795.02 a05/04/04 EXHIBIT "C" AFFIDAVIT OF NONE -FOREIGN ENTITY TO: CITY OF LA QUINTA ("Buyer") The Internal Revenue Code of 1954 ("Code") (26 U.S.C. Sections 1445, 7701) provides that a transferee of a U.S. real property interest must withhold tax if the transferor is a foreign person. To inform the transferee that withholding of tax is not required upon transfer of that certain U.S. real property interest described in Exhibit "A" to the Agreement for Purchase and Sale and Escrow Instructions dated 2004, and incorporated herein by reference ("Property"), that the undersigned ("Seller") hereby certifies the following: 1. Seller 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 Regulations); and 2. The U.S. taxpayer identification number for Seller is ; and 3. The address for mailing purposes of Seller is: and 4. Seller understands that this certification may be disclosed to the Internal Revenue Service by Buyer and that any false statement contained herein could be punished by fine, imprisonment, or both. Under penalty 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, and I further declare that I have authority to sign this document on behalf of Seller. Dated: , 2004 SELLER: ELAINE LOUISE CULP ROBERT LORIS CULP 119/015610-0008 494795.02 a05/04/04 EXHIBIT "D" BILL OF SALE ELAINE LOUISE CULP AND ROBERT LORIS CULP, HUSBAND AND WIFE, AS JOINT TENANTS (collectively, the "Seller"), in consideration of good and valuable consideration in hand paid by THE CITY OF LA QUINTA (the "Buyer"), the receipt and sufficiency of which is hereby acknowledged, does by these presents release, transfer, bargain, sell, assign and convey unto the Buyer, its successors and assigns, all of the Personal Property as such is defined in that certain Agreement for Purchase and Sale and Escrow Instructions between Seller and Buyer executed , 2004, as such may have been amended. Seller does hereby represent and warrant that all such property is free and clear of all security interests, liens and encumbrances other than those assumed by Buyer and in good working order and condition. Seller does hereby covenant with Buyer that it has good right to sell, transfer, convey and assign all of right, title and interest in the same to Buyer and will warrant and defend the same in favor of Buyer, its successors and assigns. IN WITNESS WHEREOF, the Seller has caused these presents to be signed as of this day of 512004. SELLER: ELAINE LOUISE CULP ROBERT LORIS CULP 119/015610-0008 494795.02 a05/04/04 EXHIBIT "E" ESCROW INSTRUCTIONS [See Next 2 Pages] 119/015610-0008 494795.02 a05/04/04 GENERAL PROVISIONS TO: CHICAfa►O TITLE COMPANY Escrow No. CA" Time is of the essence of the" Instructions. ll this escrow is not In a condition to close by the TIME LIMIT DATE as provided for herein and written demand for cancellation Is received by you from any principals to this escrow after said date. you shall act in accordance with paragraph 7 of the Gwwa l Provisions. tf no conflicting Instruction or demand for cancellation is made, you will proceed to close this escrow when the principals have complied with efts escrow instructions. In the evam one or Moro of the General Provisions are held to be invalid, those remaining will continue to be operative. Any amendments of or supplements to any Instructions affecting escrow must be in writing. You are authorized to order demands for, and pay at the closer of escrow any encumbrances of record necessary to plAce title in the condition called for without further authorization. You are farther authorized, prior to the close of escrow, to pay irom funds on deposit any fees necessary to obtain any demand and/or report as may be required In this escrow and at the close of escrow charge the parties as appropriate. The principals will hand you any funds and instruments required from each respectively to complete this escrow. interest on any now financing may begin to accrue on the date loan fonds/proceeds are disbursed by the now lands(, and borrower agrees to pay same In accordance with lender's instructions. 2. You are instructed to deliver and/or record all documents and disburse all funds when you can comply with these instructions and issue any title insurance polity as called for herein. These Instructions, together with any amendments and/or supplements, may be executed in counterparts end together shall oonstitule one and the same document. # these instructions relater to a salt, and It there Is no other written agreement between the parties perlafrning thsreto, buyer agrees to buy and sailer agress to sell upon the terms and conditions hereof. All documents, bales and statements due the undersigned we to be mailed to the respective addresses shown herein. unless otherwise directed. In the event that any party to this escrow utliizoe facrdmlis transmitted signed documents, ail parties hereby agree to accept and hereby instruct the escrow holder to rely upon such documents as if they bore original signatures. Buyer and setter further acknowledge that any documents to be recorded bearing non original (facsimile) signatures will not be accepted for recording by the county recorder. 3. The phrase close of escrow' (or COE) as used in this escrow means the elate on which documents are recorded, unless otherwise specified. 4. Assume a 30 day month in any proration herein provided, and unless otherwise instructed, you are to use the. Information contained in the latest available tart statem M Including any supplements! taxes of record, rental statement as provided by setter and beneficiary's or association statements delivered Into escrow for proration purposes. 5, Upon close of escrow you are instructed to charge our respective accounts the costs attributable to each, Including but not limited to costs as provided for herein and/or in accordance with our respective estimated statements attached hereto and made a part hereof. S. Recordation of any Instruments delivered through this escrow, if necessary or groper for the issuance of the policy of title insurance cached for. is authorized. No examination or Insurance as to the amount or payment of personal property taxers is required unless specifically requested. 7, lf demand to cancel is submitted after the Time Limit Date, any principal so requesting you to cancel this eatcrow shall lose notice of demand to cancel in your office in writing. You shell within three (3) working days thereafter mail by csrtifled email one copy of such notice to each of the other principals at the address stated in this escrow. Unless written objection thereto is filed in your offers by a principal within fifteen (15) calendar days after the data of such mailing, you are instructed to cancel this escrow. tl this is a sale escrow, you may return the lender's papers and/or funds upon lender's demarxi. 8. In the event that this escrow Is canceled, any tees or charges due Chicago Title Company including cancellation fees and any expenditures incurred or authorized shall be paid from funds on deposit unless otherwise specifically agreed to or determined by a court of competent jurisdiction. Upon paymentthereof. return documents and monies to the respective parties depositing same, or as ordered by the court, and void any executed instruments. 9. it there is no written activity by a principal to this escrow within any six-month period after the Time Limit Date set forth herein, Chicago Title Company may, at its option, terminate lira agency obligation and cancel this escrow, returning all documents, monies or other Items held, to the respective parties entitled thersto, lean any fees and charges as provided herein. 10, 0, for any reason, funds are retained or remain in oscr+ow aft the ciosing data, you may deduct tttaref►om a reasonabis charge as custodian, of not leas than $25.00 per month, unless Wherwise specified. 11 In the event that you should receive or bacome aware of Confuting demands or claims with respect to this escrow, or the rights of any of the parties hereto. or any money of property deposited heroin, you shall have the absolute right at your option to discontinue any or all further acts until such conflict Is resolved to your satisfaction. 12. In the event that any Offer to Purchase, Gepoeit Receipt, or any *Mot form of Purchase Agreement is deposited in this escrow, you, as *scow holder, am not to be concerned with the terms of such document and we relieved *fall responsibility in connection therewith. The foregoing is not applicable In any transaction in which Chicago Title has specifically agreed to accept an Offer to Purchase, Deposit Receipt or other form of Purchase Agreement as escrow instructions. In any event, you are not to be concerned or liable for items designated as "memoranda' in these escrow instructions nor with any other agreement of oontract between the parties. 13, The parties hereto, by execution of the" instructions acknowledge that the escrow holder sssumes no responsibility or liability whatsoever for the supervision of any act or the pstforma ace of any condition which is a condition subsequent to the nosing of this escrow. 14, In the absence of Instructions to the contrary. you are hereby authorized to utilize wire services, overnight, next day, or other expedited delivery services On opposed to the regular U.S. Mail) and to charge the respective party`s account accordingly. 15. Conceming any ,nil property Involved In this transaction, you are released from and shall have no liability, obligation or responsibility with respect to (a) withholding of fonds pursuant to Section 1445 of the internal Revenue Code of 1986 as amended, and to Sections 18662 and 18668 of the California Revenue and Taxation Code, (b) advising the parties as to the requirements of said Section 1445, (c) determining whether the transferor is a foreign person or a non-resident under such Section, nor (d) obtaining a non foreign affidavit of other exemp#On from withholding under saki moons rot otherwise making any inquiry concerning compliance with such Sections by any party to the transaction. 16. If you pay a demand to pay in full a revolving line of credit or equhyNne loan, you are hereby instructed on my behalf and for my benefit, to request that the lender Issuing said demand cancel said revolving line or equityline of credit. 17. You are authorized to furnish to any af[illate of Chicago Tide Company, any attorney, broker or lender identified with this transaction or any one acting on behalf of such lender any information, Instructions, amendments, statements. or notices of cancellation given In connection with this escrow. ti any check submitted to escrow is disftonored when presented for payment, you are authorized to notify all principais and/or their respective agents of such non payment. 18. All notions, change of Instructions, con tmunioations and documents are to be delivered In writing to the office of Chicago Tide Company, as sat forth herein. 1.4nI"ft%. i- (Continued) GENERAL PROVISIONS (Continued) TO: CHICAGO TITLE COMPANY Esorow No. Date 19. Pit funds received in this oscrow OW1 be deposited vAth other escrow funds In *no or more non-Intar"t bearish demand accounts of Chicago Title Company In any state or fit dwal bank or any state or federal savings and loan association Me depository Institutions") and may be transferred to wW other such nts. The pare" to this sacrow oclaxWed9s that while the" amounts do not bow Interest, because of these and of1w banking relationships with depository institutions, Chicago Titre Company and its affiliaws may receive from some of the depository intsMutions, an army of bartking mvioss, s000mmodavoot at cow betwoft, ChIrAgo Title Company and JU affiliates AW may elect to enter Into other business transactions with or obtain loans for investment or other purposes from some of the depository Institutions, All such serviose, accommodations and cow benefits shall acme, directly or Indirectly, to Chicago Title Company and Its affiliates and they shelf he" no obligation to acoount to the parties to this sectow for the value of such servicos, accommodations or other beriolft, AN disburawntotA stroll be made by Chicago TX* C4"any check, unless otherwise instructed. Chicago Title Company &hall not be responsible for any delay In closing if funds received by the $60(ow we not available for immediate vWthdrawid. Chicago Title Company may, at its option, require ooricuffent Instructions from sit principal$ prior to ml*"* Of any funds on deposit In this "crow. 20. You are authorized to destroy or othenWas dispose of any and all documents, papers, Instructions, mtr"pondence and other material pertaining to this **am at the expir011oin of six (6) yews from the close of escrow or cancellation thereof, Whout liability and without further notice. IMPORTANT NOTICE Except for vWm transters, funds remitted to this escrow we subject to svallsbaft requirements Imposed by Section 12413.1 of the California insurance Code. CASHIERS, CERTIFIED or TELLEWS checks, payable to CHICAGO TITLE COMPANY we generally available for disbursement on the next business day following the date of deposit. Other forms of payment may cause extended do" in the closing of your transaction pursuant to the requirements Imposed by State Low, 0*9 transfer Information available upon request) ALL PARTIES TO THIS ESCROW ACKNOWLEDGE THAT CHICAGO TITLE COMPANY DOES NOT PROVIDE LEGAL ADVICE NOR HAS IT MADE ANY INVESTIGATION, REPRESENTATIONS OR ASSURANCES WHATSOEVER REGARDING THE LEGAL ASPECTS OR COMPLIANCE OF THIS TRANSACTION WITH ANY TAX, SECURITIES OR ANY OTHER STATE OR FEDERAL LAWS. IT IS RECOMMENDED THAT THE PARTIES OBTAIN INDEPENDENT LEGAL COUNSEL AS TO SUCH MATTERS. THE FOREGOING ESCROW INSTRUCTIONS AND GENERAL PROVISIONS HAVE BEEN READ AND ARE UNDERSTOOD AND AGREED TO BY EACH OF THE UNDERSIGNED. CITY OF LA QUINTA A CALIFORNIA MUNICIPAL CORPORATION THOMAS P. GENOVESE, CITY MANAGER NO" - 10/22/W kv EXHIBIT "F" SPECIAL ESCROW INSTRUCTIONS PRORATIONS AND/OR ADJUSTMENTS: Escrow Holder is authorized and instructed to prorate and/or make adjustments on the following items as of the close of escrow date: TAXES ON REAL PROPERTY: Prorate taxes, including all tax bill items, except taxes on personal property not conveyed through this escrow, based on the current year's taxes, except between July l" and the date you are furnished current taxes (approximately November 1 S), based on immediate preceding year's taxes. In each case use the figures furnished you by the title company, without liability on your part as to their correctness. Owner to pay prior to delinquency, supplemental tax bills, and any taxes on personal property not being sold herein, which taxes are a lien on the real property being conveyed and you are not to be concerned herewith. Refund, if any, from the Riverside County Tax Collector, for refund of taxes buyer is being debited for herein, is to be handled outside of escrow. Chicago Title Company, its officers and employees are relieved of all responsibility and liability in connection therewith. 119/015610-0008 494795.02 a05/04/04