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10/31/2003 68:00A Fee:274.00 Page 1 of 90 Recorded in Official Records County of Riverside Gary L. Orso Assessor, County Clerk 8 Recorder

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MG DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AND AGREEMENT FOR THE HILLS

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TABLE OF CONTENTS Page I ARTICLE 1 1.1 1.3 1.5 1.2 Act Articles Board or Board of Directors 1.4 Association 1.6 Budget 1.7 Bylaws 1.8 1.9 City Common Areas DEFINITIONS [Intentionally left blank] 2 2 2 2 2 2 2 3 3 3 3 3 3 3 3 3 3 3 3 4 4 4 4 4 4 4 4 4 4 4

1.10 Committee 1.11 Common Expenses 1.12 Common Facilities 1.13 County 1.14 Declarant 1.15 Declaration 1.16 Design Guidelines 1.17 DRE 1.18 Golf Courses 1.19 Hazardous Materials 1.20 Homeowner 1.21 Improvements 1.22 Laws 1.23 Lot 1.24 Lessee 1.25 Maintenance and Operation Account 1.26 Member 1.27 Mortgage 1.28 Mortgagee 1.29 Noncompliance Expense
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TABLE OF CONTENTS (continued) Page 1.30 1.31 1.32 1.33 1.34 1.35 1.36 1.37 1.38 1.39 1.40 1.41 1.42 1.43 1.44 1.45 1.46 1.47 1.48 1.49 1.50 1.51 1.52 1.53 ARTICLE 2 2.1 2.2 2.3 ARTICLE 3 3.1
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Occupant Operator Owner Parcel Parking Area Percentage Share Person Plans Preliminary Plan Primary Entrance Road Project Documents Property Record or Recordation Regular Assessment Reimbursement Assessment Reserve Account Residence Rules and Regulations Special Assessment Supplement Telecommunications System Unit Users Voting Rights EFFECTIVE DATE Status of Property Property Configuration Effective Date THE OPERATOR The Operator

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TABLE OF CONTENTS (continued) Page -3 3.2 3.3 3.5 3.6 3.7 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 Directors and Officers Duties Personal Liability Interest of Declarant Rights Purpose of Improvement Regulations Required Review of Plans Modifications to Plans and Improvements Basis for Disapproval Decision of the Operator Time for Approval or Disapproval ... Appeals Development Requirements of City Submission of Plans to City or Government 8 8 9 11 11 11 12 12 13 14 14 14 15 15 15 15 16 16 16 16 16 17 17 17 17 17 18 18 19 19

3.4 Powers

ARTICLE 4 REVIEW OF IMPROVEMENT PLANS

4.10 Requirements of Development Agreement 4.11 Proceeding with Work 4.12 Completion of Work 4.13 Estoppel Certificate 4.14 No Liability for Approval Errors 4.15 Disclosure and Waiver of Conflict of Interest ARTICLE 5 IMPROVEMENT STANDARDS AND LIMITATIONS ARTICLE 6 REGULATION OF OPERATIONS AND USES 6.1 6.2 6.3 6.4 6.5 6.6
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Permitted Uses Prohibited Uses Nuisances Compliance with Laws, Regulations, Permits or Certificates of Occupancy Hazardous Materials Necessary Permits

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TABLE OF CONTENTS (continued) Page 4 6.7 6.8 6.9 6.10 6.11 6.12 6.13 ARTICLE 7 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10 7.11 ARTICLE 8 8.1 8.2 8.3 8.4 8.5 8.6 8.7 Access Rules and Regulations Parking Noises and Noxious Odors Temporary Structures Oil and Mineral Rights Use of Golf Courses, Hotels and Other Property RESERVATIONS OF EASEMENTS AND RIGHTS Easements Over Common Areas Easement for Performance and Discharge of Rights and Duties Access Utilities Entry by Owners Easements Reserved and Granted Reservation by Declarant and Operator Owner's and Homeowners' Easements of Enjoyment of the Common Areas Owner's and Homeowners' Easements for Ingress and Egress Oil, Mineral Rights, Water Rights, Cable Television and Drainage Monitoring. Signage Easement MAINTENANCE AND USE OF THE PROPERTY AND COMMON AREAS Management and Maintenance by Operator Maintenance Caused by Owners, Etc Common Area Restrictions Signs Intentionally Omitted Destruction, Restoration Eminent Domain 19 20 20 20 20 21 21 22 22 22 22 22 23 24 24 24 24 24 25 25 25 25 26 26 26 26 26

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TABLE OF CONTENTS (continued) Page ARTICLE 9 FUNDS AND ASSESSMENTS 9.1 Agreement to Pay Maintenance Assessments; Creation of Lien and Obligation 9.2 9.4 9.5 9.6 9.7 9.8 9.9 No Waiver by Non-Use Parcels Subject to Assessment; Allocation of Assessments Subassociations or Supplemental CC&Rs Regular Assessments Special Assessments Reimbursement Assessments Non-payment of Assessments 9.3 Budgets 27 27 27 27 28 28 28 29 30 30 30 30 31 31 31 31 31 31 32 32 32 32 33 33 33 34 35 35 35

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9.10 No Offsets 9.11 Transfer of Property 9.12 Failure to Fix Regular Assessments 9.13 Operator Funds 9.14 Books of Account ARTICLE 10 MAINTENANCE, RESTORATION OF PARCELS 10.1 Duty to Maintain 10.2 Erosion Control; Lateral Support 10.3 Damage and Destruction; Duty to Rebuild 10.4 Insurance Obligation of Owners 10.5 Obligation to Pay Taxes, Liens 10.6 Performance By Operator ARTICLE 11 ENFORCEMENT 11.1 Violation a Nuisance 11.2 General Remedies 11.3 Collection of Assessments; Liens 11.4 Interest 11.5 Attorneys' Fees 11.6 Cumulative Remedies; No Waiver

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TABLE OF CONTENTS (continued) Page ARTICLE 12 TERM, TERMINATION, AMENDMENT 12.1 Term of Declaration 12.2 Amendments ARTICLE 13 GENERAL PROVISIONS 13.1 Termination and Assignment of Declarant's Rights and Duties 13.2 Constructive Notice and Acceptance 13.3 Declarant's Reserved Rights 13.4 Exhibits 13.5 Governing Law 13.6 Headings 13.7 Mortgage Protection; Right to Cure 13.8 Mutuality, Reciprocity; Runs With Land 13.9 Notices 13.10 Notification of Sale 13.11 Recitals 13.12 Number; Gender 13.13 Severability 13.14 Waiver 13.15 Common Interest SubdivisionlDRE ARTICLE 14 ANNEXATION AND DEANNEXATION 14.1 Annexation 14.2 Deannexation 14.3 Supplement 14.4 Reallocation of Assessments. ARTICLE 15 RESIDENTIAL PROPERTY 35 35 36 36 36 36 37 37 37 37 37 38 38 38 38 39 39 39 39 40 40 40 40 40 40

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TABLE OF CONTENTS (continued) Page / EXHIBIT A-1 EXHIBIT A-2 EXHIBIT B EXHIBIT C-1 EXHIBIT C-2 EXHIBIT D EXHIBIT E EXHIBIT F LEGAL DESCRIPTION OF THE PROPERTY MAP SHOWING THE PROJECT AND THE PARCELS LEGAL DESCRIPTION OF PARTICIPATING PROPERTY LEGAL DESCRIPTION OF COMMON AREAS DESCRIPTION OF COMMON FACILITIES GOLF COURSE RELOCATION OF COMMON FACILITIES PROPOSED FIRST YEAR BUDGET

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DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS AND AGREEMENT FOR THE HILLS THIS DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS , 2003 .2. IL/ AND AGREEMENT FOR THE HILLS ("Declaration") is made as of Ceralli.by LB HILLS GOLF, LLC, a California limited liability company ("Declarant"), with reference to the following facts: RECITALS: Declarant is the fee owner of certain real property located in the City of Indio A. ("City"), County of Riverside, State of California, more particularly described on Exhibit A-1 attached hereto, which Declarant intends to subdivide into parcels, currently as depicted on Tentative Parcel Map no. 30260 prepared by Watson & w Watson Engineering, Inc., a copy of aits Gevtic ti-e. era s.c.A.sch e zfltni&-c ir which is available in the office of Declarant located at 30,c Aiotrif ifintborc RivD• ‘br-fe •
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B. Declarant has developed a portion of the Property (as defined in Section 1.41) with two 18-hole golf courses, a clubhouse and related facilities. Declarant intends to develop the remaining portions of the Property with approximately 900 units of residential housing products which may include custom lots, single family detached housing and timeshare/resort with related retail uses. Declarant intends to sell, lease or otherwise convey portions of the Property to various individuals and entities for such purposes. The Property is subject to (i) that certain Development Agreement C. ("Development Agreement"), dated December 18, 1996, made by and between the City of Indio, a California municipal corporation, Paul Ames, trustee, and Landmark Golf Company, an Arizona corporation, and recorded in the Official Records of Riverside County, California on September 18, 1998 as Instrument No. 399082; (ii) that certain The Hills Specific Plan (SP 96-87) ("Specific Plan") approved by the City of Indio City Council and Planning Commission on November 13, 1996; (iii) that certain Project Master Plan (PMP 96-8-10) ("Project Master Plan") approved by the City of Indio City Council and Planning Commission on November 13, 1996; and (iv) all other documents, covenants, conditions and restrictions recorded prior hereto or to which this Declaration is expressly subordinated, if any. D. INDIO LAND VENTURE LLC ("Participating Neighbor") is the fee owner of certain real property located southwest of the Property, in the City of Indio, County of Riverside, State of California, more particularly described on Exhibit B attached hereto ("Participating Property"). Participating Neighbor and Declarant intend to process a lot line adjustment with respect to a portion of the Property and the Participating Property to relocate the lot lines of the Property and the Participating Property such that the entire primary entrance road, which commences at the western boundary of the Property (the "Primary Entrance Road") is thereafter relocated as set forth below. Declarant and Participating Neighbor have

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addressed and provided for the cost, at their expense, of such lot line adjustment as well as the construction of the relocated Primary Entrance Road and removal and relandscaping of the original Primary Entrance Road in a separate agreement. Operator and Participating Neighbor, or their successors and assigns, shall also enter into an agreement providing for the Participating Property's payment of its fair and equitable share, based on usage, of the Operator's cost of maintaining and servicing the Primary Entrance Road ("Primary Entrance Road Maintenance Agreement"). By this Declaration, Declarant intends to impose upon the Property (as defined E. below) mutually beneficial restrictions, which will constitute a general scheme for the management, use, occupancy and enjoyment of the Property, all for the purpose of enhancing and protecting the value, desirability and attractiveness of the Property and enhancing the quality of life within the Property, for the benefit of Declarant and all future owners of the Property. DECLARATION NOW, THEREFORE, Declarant hereby covenants, agrees and declares that the Property and each portion thereof is and shall be owned, conveyed, mortgaged, encumbered, leased, developed, improved, used and occupied subject to this Declaration and the limitations, covenants, conditions, reservations, rights, restrictions, easements, liens and charges set forth herein, all of which are equitable servitudes and shall run with the title to the land and shall be binding on and inure to the benefit of all parties having or acquiring any right, title or interest in the Property or any portion thereof and their respective heirs, successors and assigns. The purpose of this Declaration is to enhance and protect, and provide a means of controlling and maintaining, the value, desirability and attractiveness of the Property and every portion thereof, for the benefit of Declarant and every owner of the Property or a portion thereof, in accordance with a general plan of subdivision, development and improvement and in a manner that is fair and equitable to each Owner. Declarant shall consider making reasonable amendments to this Declaration that may be requested by the DRE (as defined in Section 1.17 below) in connection with an Owner's compliance with the DRE requirements for a residential or time-share subdivision of an Owner's Parcel. ARTICLE 1 DEFINITIONS 1.1 1.2 [Intentionally left blank] "Act" shall have the meaning set forth in Section 13.15.

"Articles" shall mean the Articles of Incorporation of the Association which are or 1.3 shall be filed in the Office of the California Secretary of State, as amended and supplemented (1) from time to time. 1.4 "Association" shall have the meaning set forth in Section 3.1.1.
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"Board" or "Board of Directors" shall mean the Board of Directors of the 1.5 Association, as the same may be constituted from time to time. 1.6 "Budget" shall have the meaning set forth in Section 9.3.

"Bylaws" shall mean the Bylaws of the Association, as amended and 1.7 supplemented from time to time. 1.8 "City" shall mean the City of Indio, California.

"Common Areas" shall mean the Primary Entrance Road, Parking Areas, water 1.9 lines, other utility infrastructure and landscaping areas within the Property described on Exhibit C-2 attached hereto, as the same may be adjusted from time to time in accordance with the terms and provisions of this Declaration. 1.10 "Committee" shall mean the Architectural Committee. 1.11 "Common Expenses" shall mean the expenses of: (a) maintaining and operating the Common Areas and Common Facilities located thereon incurred by the Operator including without limitation the cost of maintaining the Primary Entrance Road and any project marquee, monument or sign with respect to the Property that may be installed at the primary entrance road of the Property; (b) the cost of utility services for the Common Areas; (c) exercising the powers and performing the duties of the Operator under this Declaration and the other Project Documents; and (d) that portion of the maintenance and shared expenses that Operator has agreed to pay pursuant to the Primary Entrance Road Maintenance Agreement, if entered into by Operator and Participating Neighbor. The undivided interests in the Common Expenses shall be allocated among the Parcels so that each Parcel's percentage interest in the Common Expenses is as set forth in Article 9. 1.12 "Common Facilities" shall mean and refer to the Improvements upon the Common Areas as set forth in Exhibit C-2 attached hereto, as the same may be adjusted from time to time in accordance with the terms and provisions of this Declaration. 1.13 "County" shall mean the County of Riverside, California. 1.14 "Declarant" shall mean LB Hills Golf, LLC, a California limited liability company, and successors and assigns of LB Hills Golf, LLC, a California limited liability company, or a successor Declarant if: (a) such successor or assign is an Owner, and (b) LB Hills Golf, LLC, a California limited liability company, or the then current Declarant executes and records a document which expressly names such party as a successor Declarant and assigns the rights and duties of Declarant hereunder. 1.15 "Declaration" shall mean this Declaration of Covenants, Conditions and Restrictions and Agreement for The Hills, as amended or supplemented from time to time. 1.16 "Design Guidelines" shall mean the guidelines for the development and use of the Property as established by the Operator from time to time. Copies of the Design Guidelines will be available from the Operator upon written request to the Operator.

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1.17 "DRE" shall mean the California Department of Real Estate. 1.18 "Golf Courses" shall mean the two golf courses and related golf course facilities, including, without limitation, a clubhouse, more particularly described in Exhibit D attached hereto and incorporated therein by this reference, and shall further include either golf course and/or any portion thereof. 1.19 "Hazardous Materials" shall have the meaning set forth in Section 6.5. 1.20 "Homeowner" shall mean the fee simple owner of a Unit within the Property, including a timeshare condominium interest, whether fractional or club membership interest. 1.21 "Improvements" shall mean buildings, accessory structures, underground installations, slope and grade alterations, roads, rail spurs, curbs, driveways, gutters, parking areas, loading areas, sidewalks, utilities, fences, walls and barriers, stairs, decks, poles, signs, hedges, plantings, planted trees and shrubs, irrigation systems, storm drains, drainage facilities, clarifiers and other storm drain water filtration systems and all other improvements, structures or landscaping of any kind, whether above or below the land surface. 1.22 "Laws" shall mean, collectively, all laws, statutes, ordinances, rules, regulations, requirements, permits, approvals, or certificates of occupancy promulgated by any federal, state or local governmental entity with jurisdiction over the Property or any business, use or operation thereon. 1.23 "Lot" shall mean any portion of a Parcel that is demarcated as a separate legal lot on a final map or a parcel shown on a parcel map filed for record in the County, which lot or parcel is described in this Declaration or any Supplement as part of the Property, as such lot or parcel may be adjusted from time to time by any recorded lot line adjustment. Lot shall not include any Common Areas. 1.24 "Lessee" shall mean the owner of a leasehold interest in a Parcel or Unit, or the owner of Improvements built on a Parcel. 1.25 "Maintenance and Operation Account" shall mean an account into which the Operator shall deposit funds for maintenance and operation assessments, as described in Section 9.13. 1.26 "Member" shall mean an Owner who is a Member of the Association. 1.27 "Mortgage" shall mean any duly recorded mortgage or deed of trust encumbering one or more Parcels or Units. 1.28 "Mortgagee" shall mean a holder of a Mortgage, including a beneficiary under a deed of trust. 1.29 "Noncompliance Expense" shall have the meaning set forth in Section 9.8.1(a).

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1.30 "Occupant" shall mean any Person who has the legal right to occupy a portion of the Property, including, without limitation, a Homeowner or Lessee. 1.31 "Operator" shall have the meaning set forth in Section 3.1.

1.32 "Owner" shall mean the record owner of fee title to any Parcel or Parcels, including Declarant, but excluding those holding such an interest merely as security for the performance of an obligation and excluding a Homeowner. If ownership of a Parcel is held separately from ownership of the Improvements on such Parcel, the owner of the Parcel shall be deemed the Owner hereunder. If a Parcel is leased, the Owner of the fee title and not the Lessee shall be deemed the Owner of the Parcel, regardless of the length of the term of the lease. In the event of the sale of a Parcel under a land sale contract, the vendee under such contract shall be deemed to be the Owner. In the event that a Parcel is subdivided into Residences or Lots, the Owner shall be the subassociation formed to govern that Parcel, or if no such subassociation is formed, the Person designated by the Homeowners of that Parcel to represent them in the Association. If the Homeowners of a particular Parcel fail to create a subassociation or appoint a representative, the Owner shall be deemed to be that Person who last held record title to the entire Parcel prior to its subdivision. 1.33 "Parcel" shall mean each legal parcel created, adjusted and situated within the Property, consisting of Parcel I, Parcel 2, Parcel 3, Parcel 4 and the Golf Course Parcel, all as identified on Exhibit A-2 attached hereto. 1.34 "Parking Area" shall mean that portion of the Parcels used for passage and surface parking of motor vehicles, including incidental and interior roadways, walkways, light standards, directional signs, curbs and landscaping within the areas used for such parking, together with all Improvements which at any time are erected thereon. 1.35 "Percentage Share" shall have the meaning set forth in Section 9.4. 1.36 "Person" shall mean a natural person, a corporation, a partnership, a limited liability company, a trustee, or other legal entity. 1.37 "Plans" shall mean the Preliminary Plan and the Final Plan. 1.38 "Preliminary Plan" shall have the meaning set forth in Section 4.2.2. 1.39 "Primary Entrance Road" shall mean the road constructed for access by the Parcels to the public road known as Golf Center Parkway upon that portion of the Property legally described on Exhibit C-1 attached hereto and shall also have the meaning set forth in Recital D. 1.40 "Project Documents" shall mean this Declaration, the exhibits attached hereto, the Articles and Bylaws, the Design Guidelines, the Rules and Regulations, all as amended or supplemented from time to time. 1.41 "Property" shall mean the real property legally described in Exhibit A-1 and A-2, including all facilities and Improvements located thereon.

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1.42 "Record" or "Recordation" shall mean, with respect to any document, the filing and recordation of said document in the Official Records of the Office of the County Recorder of the County of Riverside, California. 1.43 "Regular Assessment" shall have the meaning set forth in Section 9.6.1. 1.44 "Reimbursement Assessment" shall have the meaning set forth in Section 9.8.1. 1.45 "Reserve Account" shall mean an account into which the Operator shall deposit funds for contingencies, repairs and replacements, as described in Section 9.13. 1.46 "Residence" shall mean a Lot together with a Dwelling thereon, including a timeshare condominium interest, whether fractional or club membership interest, but shall specifically exclude: (i) Common Area, and (ii) an unimproved or partially improved Lot that has not been sold to a Homeowner. 1.47 "Rules and Regulations" shall mean those rules and regulations prepared by the Operator to regulate the use, operation, management and maintenance of the Property, as further described in Section 6.8, as such rules and regulations may be amended or supplemented by the Operator. 1.48 "Special Assessment" shall have the meaning set forth in Section 9.7. 1.49 "Supplement" shall mean a supplement to this Declaration as provided in Article 14 hereof. 1.50 "Telecommunications System" shall mean a fiber-optic residential broadband telecommunications network, capable of providing voice, data and cable television services to all or portions of the Property. 1.51 "Unit" shall mean a Lot or Residence, including a timeshare condominium interest, whether fractional or club membership interest. 1.52 "Users" shall mean all persons granted permission to utilize the Common Areas, including Owners, Homeowners, employees and service people, licenses, invitees, customers, occupiers, Occupants, contractors, agents, Lessees and sublessees. 1.53 "Voting Rights" of each Owner shall mean the voting rights of each Owner which shall equal their respective "Percentage Share".

ARTICLE 2 EFFECTIVE DATE Status of Property. As of the date of the recordation of this Declaration (the 2.1 "Recording Date"), the Property consists of twelve (12) legal lots as legally described in Exhibit A-1. 1111111111111111111111111111111111111111111111111111111
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Property Configuration. Declarant intends to subdivide the Property so that the 2.2 entire Property consists of the four Parcels and the Golf Course Parcel defined above which subdivision shall be substantially in the form set forth in the attached Exhibit A-2. Effective Date. This Declaration shall be of no force and effect until the date (the 2.3 "Effective Date") upon which the appropriate governmental authorities approve the subdivision contemplated by this Declaration substantially in the form demarcated on the attached Exhibit A2. ARTICLE 3 THE OPERATOR The Operator. As long as Declarant is an Owner, and subject to the provisions of 3.1 Section 13.1, Declarant shall be the "Operator". 3.1.1 Notwithstanding the foregoing, Declarant shall have the option, at any time, to discontinue functioning as the Operator; provided, however, that prior to discontinuing its function as the Operator, Declarant shall form a California non-profit mutual benefit corporation (the "Association"), which Association shall, upon formation, become the Operator, and shall assume the rights, obligations and duties of the Operator hereunder. The Articles and Bylaws of the Association shall be submitted to the City for review and approval prior to formation of the Association. Once formed, the Association's membership and voting rights shall be determined by their Percentage Share. If at any time Declarant ceases to be the Operator and at such time the Association has not yet been formed, then until such time that the Association is formed, the Operator shall be an unincorporated association consisting of all Owners, which Owners (a) shall have voting rights commensurate with the rights their Percentage Share, and (b) shall forthwith organize the Association. 3.1.2 The Operator, as the agent and representative of the Owners, shall have the right, but not the obligation, to enforce the provisions of this Declaration. Further, any Owner, including Declarant so long as it is an Owner, shall have the right and authority, but not the obligation, to enforce the provisions of this Declaration. 3.1.3 Subject to the restrictions and limitations contained herein the Operator may enter into contracts or other transactions with other parties, including Declarant or its affiliated companies. Such contracts or other transactions shall not be void or voidable because one or more directors or officers of the Operator are employed by, have a financial interest in or are otherwise affiliated with such other parties, including Declarant or its affiliates, if (i) the fact of such interest has been previously disclosed or made known to all of the Owners, and (ii) the transaction or contract is fair and reasonable. Notwithstanding the foregoing, any management contract entered into by the Operator must be terminable, without penalty, for cause at any time and without cause upon reasonable notice. 3.1.4 If the Association has been formed, then upon adoption of a resolution by the Board of Directors stating that the then current use of a specified part of the Common Areas is no longer in the best interests of the Owners, and the approval of such resolution in accordance with the Bylaws, the Board of Directors shall have the power and right to change the use thereof

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(and in connection therewith to take whatever actions are required to accommodate the new use), provided such new use; (i) also shall be for the common benefit of the Owners; and (ii) shall be consistent with any recorded deed and zoning regulations. Directors and Officers. The affairs of the Association, once formed, shall be 3.2 conducted by and through the Board of Directors and such officers and committees as the Board may elect and appoint, all in accordance with the Article and the Bylaws. Duties. The Operator shall be charged with the duties set forth in this 3.3 Declaration, including, but not limited to, the following: The Operator shall fix, levy, collect and enforce 3.3.1 Assessments. Assessments as further described in Article 9. 3.3.2 Common Areas. The Operator shall maintain, repair, replace, restore, operate, control and manage the Common Areas and all Common Facilities and equipment located thereon, as further described in Article 8, except as otherwise set forth herein. 3.3.3 Discharge of Liens. The Operator shall discharge by payment, if necessary, any lien against the Common Areas or any portion thereof owned by the Operator, and, if placed thereon as a result of the action of an Owner or Owners or their respective Occupants or Lessees, assess the cost thereof as a Reimbursement Assessment to the Owner or Owners responsible therefor; provided, however, that such Owner or Owners shall be given notice of the lien and the proposed discharge at least fifteen (15) days prior to discharge by the Operator, and the opportunity to be heard by the Operator, either orally or in writing, at least five (5) days prior to the proposed discharge. 3.3.4 Insurance. The Operator shall maintain such policy or policies of insurance as it deems necessary, to the extent available at a reasonable cost, including, but not limited to: (a) all risk property insurance in an amount sufficient to cover the Common Areas and Common Facilities for which the Operator is responsible for restoring under this Declaration; (b) commercial general liability insurance in the amount of at least Three Million Dollars ($3,000,000) per occurrence, insuring Declarant, the Operator, the Association, the Owners, the Board and the Committee, as applicable, against all liability arising out of the ownership, use and maintenance of the Common Areas; (c) worker's compensation insurance, as required by law; (d) directors' and officers' errors and omissions policies, in form and amount determined by the Operator; and (e) insurance against any other risk which the Operator considers appropriate. (a) Notwithstanding the scope of insurance specifically set forth above, the Association shall maintain, at all times, insurance against such losses and perils, in such amounts, upon such terms and subject to such conditions, as may be prescribed by any governmental agency from time to time. (b) The Association, any member of the Board of Directors, any officer and Declarant shall not be liable to any Person, including any Owner or Mortgagee, if any risks or hazards are not covered by the insurance obtained by the Operator or if the amount of such insurance is not adequate. 2003-864982 113/31/23 N8 NON 1 11111111110111111111111 111111311
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Premiums for all insurance obtained by the Operator pursuant to (c) this Article shall be Common Expenses and shall be paid for by the Operator; provided, however, that the cost of insurance coverage is a Common Expense only to the extent the coverage is incurred in the course of its duties as Operator. It is the responsibility and obligation of each Owner to provide fire (d) and extended coverage insurance on its Parcel and any Improvements located thereon. Nothing herein shall preclude any Owner or Occupant from also carrying any public liability insurance as it deems desirable to cover its individual liability for damage to person or property occurring on its Parcel or elsewhere on the Property. Such policies shall not adversely affect or diminish any ability under any insurance obtained by or on behalf of the Association. 3.3.5 Payment of Expenses. Subject to the terms of reimbursement set forth in Article 9 hereof, the Operator shall pay, as part of the Common Expenses, all expenses and obligations incurred by the Operator in the conduct of its business relating to the Common Areas and Common Facilities, including, without limitation, all licenses, taxes or governmental charges levied or imposed against the Common Areas and Common Facilities. 3.3.6 Metering Utilities. To the extent reasonably possible, the Operator shall separately meter the utilities used for the Common Areas and Common Facilities. Powers. The Operator shall have the following powers, rights and duties, in 3.4 addition to those provided elsewhere in this Declaration and by applicable Law, and if applicable, by the Articles and Bylaws. 3.4.1 Acquisition and Development of Property. The Operator shall have the power to acquire (by gift, purchase or otherwise), own, hold, improve, operate, maintain, convey, sell, lease, transfer, dedicate for public use or otherwise dispose of the Property and any real or personal property in connection with the affairs of the Operator, including, without limitation, the designation of traffic circulation and parking areas. 3.4.2 Assessments, Liens. The Operator shall have the power to levy and collect assessments pursuant to Article 9 and to perfect and enforce liens in accordance with the provisions of Article 11. 3.4.3 Contracts. The Operator shall have the power to contract for goods and/or services for the Property and the Common Areas or for the performance of any power or duty of the Operator, subject to limitations set forth elsewhere in this Declaration, and if applicable, the Articles and Bylaws. 3.4.4 Delegation. The Operator shall have the power to delegate its authority and powers to associations, committees, agents, officers or employees of the Operator. 3.4.5 Enforcement. The Operator shall have the power to enforce this Declaration pursuant to Article 11. 3.4.6 Manager. The Operator shall have the power to employ a manager or other Person and to contract with independent contractors or managing agents to perform all or

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any portion of the duties and responsibilities of the Operator, provided that any contract with a manager or managing agent shall not exceed a one (1) year term and may provide for the right of the Operator to terminate the contract immediately for cause and otherwise on thirty (30) days written notice. The Operator may contract with Declarant or an affiliate of Declarant so long as the contract terms reflect reasonable and competitive market rates and other terms. 3.4.7 Security Services. The Operator shall have the power to provide, or to contract for the provision of, security patrols or other security measures, or both, with regard to the Common Area and Common Facilities as the Operator deems necessary. 3.4.8 Telecommunications Services. The Operator shall have the power to provide, or to contract for the provision of, basic telecommunications services ("basic services") to the Residences by implementing a Telecommunications System. The Association shall accept an assignment of any contracts that the Operator may establish related to the basic services, or to any telecommunications services, and to the Telecommunications System. A monthly fee may be charged to the Owners, or to the Association if the Association has been formed, for the basic services, plus any applicable franchise fees or taxes, which shall be allocated to the Members as part of the Regular Assessment. The Operator, or its assignees, may provide additional telecommunications services ("upgrade to service") directly to the Residences. If any Residence accepts any upgrades to service, the Residence will be billed directly for such services. The Operator, or its assignees, may also provide telecommunications services directly to Users, or entities other than Residences, within the Property, separately from the basic services provided to the Owners or to the Association and separately from any upgrades to service provided directly to the Residences. The terms and provisions of any contract entered into pursuant to this Section 3.4.8 shall be subject to any restrictions that may be imposed by the DRE. This Section 3.4.8 shall not apply to Parcel 2. 3.4.9 Variances. The Operator shall have the power to grant reasonable variances from the provisions of this Declaration from time to time as the Operator may deem to be in the best interests of the Property for the purpose of overcoming practical difficulties or to preventing unnecessary hardship in the application of the provisions contained herein; provided, however, that: (a) a variance shall not materially injure any of the Parcels or the Improvements on any of the Property; and (b) the Owner seeking the variance shall otherwise be subject to and conform with all applicable governmental laws, ordinances, regulations and requirements. No variance granted pursuant to the authority granted herein shall constitute a waiver of any provision of this Declaration as applied to any Person or Parcel nor have any value as a precedent or entitle others to the same or any similar or other variance. 3.4.10 Agreement Regarding Primary Entrance Road of the Participating Property. In the event the Primary Entrance Road is relocated, the Operator shall (i) provide, at its sole expense for a reasonable plan for removal of the original Primary Entrance Road and relandscaping of the original location; and (ii) shall enter into the Primary Entrance Road agreements, as described in Recital D hereof. In no event shall relocation of the Primary Entrance Road cause a significant increase in the maintenance costs imposed upon any Owner. 3.4.11 Location of Common Facilities. The Operator and the Association (once formed) shall have the power, but not the duty, to relocate some or all of the Common Facilities

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from the locations depicted on Exhibit C to the locations depicted on Exhibit E attached hereto and made a part hereof, provided, that it also provides, at its sole expense for a reasonable plan for removal of the original Common Facilities and re-landscaping of the original Common Areas. Any other relocation of any of the Common Facilities shall require the approval of Owners holding sixty-seven (67%) of the Voting Rights. Notwithstanding anything herein to the contrary, any relocation of the Common Facilities shall be performed at a time and in a manner that minimizes, to the greatest extent reasonably possible, any resulting disruption and inconvenience. 3,4.12 Location of Utilities. The Operator and the Association (once formed) shall have the power, but not the duty, to relocate some or all of the utilities within the Common Areas to the locations depicted on Exhibit E attached hereto and made a part hereof Any other relocation of any of the utilities within the Common Areas shall require the approval of sixtyseven (67%) of the Voting Rights of the Owners. Notwithstanding anything herein to the contrary, any relocation of the Common Facilities shall be performed at a time and in a manner that minimizes, to the greatest extent reasonably possible, any resulting disruption and inconvenience. 3.5 Personal Liability. Neither the Operator, nor any officer, employee or agent of the Operator, nor Declarant nor any officer, employee or agent of Declarant, shall be personally liable to any Owner, or to any other party, for any damage, loss or prejudice suffered or claimed on account of any act, omission, error or negligence of any such Person unless such person failed to act in good faith or has engaged in willful or intentional misconduct. 3.6 Interest of Declarant. Declarant may develop the Property in separate phases. Declarant has developed a plan for the development of the Property which has been formulated for the common good within the Property. Declarant intends, but is not obligated, to develop the entire Property. The completion of that work and the sale, resale, rental and other disposal of the Parcels in the Property are essential to the establishment and welfare of the Property. Each Owner acknowledges that Declarant has a substantial interest in assuring compliance with, and enforcement of, the covenants, conditions, restrictions and reservations contained in this Declaration and any Supplements. 3.7 Rights. During the period of Declarant control set forth in Section 13.1, Declarant and the Owner of Parcel 2 have the rights listed below with respect that portion of the Property owned by each such party. Notwithstanding anything to the contrary that may be contained in this Declaration, nothing in this Declaration or any Rules and Regulations limits and neither any other Owner nor the Association will interfere with the exercise of these rights by the party entitled thereto. 3.7.1 Subdivision and Lot Line Adjustments. To subdivide and resubdivide any portion of any Parcel it owns. To process lot line adjustments amongst and between (i) those Parcels it owns, (ii) the Participating Property (to the extent the Participating Neighbor or is successor in interest, consents), and (iii) the Common Areas (to the extent the Common Areas being adjusted are owned by the party processing the lot line adjustment PROVIDED that such adjustment does not materially impact other Owners' use of the Common Facilities.
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3.7.2 Sales. To sell, resell, rent or sublease any portion of any Parcel it owns directly or through agents and representatives. 3.7.3 Development. To complete excavation, grading, construction of Improvements or other development activities to and on any portion of any Parcel it owns. 3.7.4 Construction. To alter construction plans and designs, to modify Improvements or to construct such additional Improvements on any Parcels it owns as it deems advisable. 3.7.5 Grading. To carry on such grading work on its Parcels as may be approved by the local government agency having jurisdiction. 3.7.6 Signs. To erect, construct and maintain on any Parcels it owns such structures, signs and displays reasonably necessary for the conduct of the business of completing the work and disposing of such Parcels by sale, lease or otherwise. 3.7.7 Creating Additional Easements. At any time prior to transfer of its ownership of all or a portion of any Parcel it owns, to establish on that Parcel additional licenses, easements, reservations and rights-of-way in favor of itself, utility companies, or others as reasonably necessary for the proper development, use and disposition of the Property. 3.7.8 Sales and Leasing. To use any and all portions of any Parcels it owns for access to its sales and leasing facilities by its prospective purchasers, sales agents. 3.7.9 Sales and Leasing Offices. To use any structures or vehicles it owns on the Parcels it owns as real estate sales or leasing offices, provided, however, that the cost of the same shall not be a Common Expense. 3.7.10 Modifications. To unilaterally modify its development plan for the Parcels it owns, or any portion thereof, including without limitation, recording Supplements for such Parcels or portions thereof and designating and redesignating phases of development. 3.7.11 Restricted Access Areas. To create areas on the Parcels it owns that are gated or that are otherwise controlled or fenced so that access to those areas is limited. 3.7.12 Exemption. During time periods of construction, maintenance or reconstruction of their respective Parcels, Declarant and the Owner of Parcel 2 shall be exempt from the restrictions contained in Article 6 of this Declaration if such exemption is necessary, in such partylJs sole and absolute judgment. ARTICLE 4 REVIEW OF IMPROVEMENT PLANS 4.1 Purpose of Improvement Regulations. The purposes of the conditions, covenants and restrictions set forth in Article 3 and Article 4 are: (a) to insure proper development and use of the Property and to enhance and protect its value, in accordance with a general plan for the development of the Property; (b) to encourage and preserve an efficient, attractive environment;

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(c) to ensure construction of Improvements of proper design and materials in conformance with the Design Guidelines which enhance the economic or aesthetic value of the Property; (d) to provide for architectural compatibility and continuity for all buildings and landscaping; (e) to secure and maintain proper setbacks from streets and adequate open spaces between structures; and (f) in general, to provide and maintain a high quality of Improvements for the Property for the benefit of Declarant and all Owners. All Improvements made to the Property also shall comply with the Development Agreement. In addition, each Owner shall be responsible for compliance of its subdivision, and the improvements to be constructed on its Parcel, with all applicable laws including, without limitation, all DRE requirements, Subdivision Lands Act requirements, and all applicable requirements of Title 10 of the California Administrative Code. 4.2 Required Review of Plans. No Improvements (other than interior improvements) shall be erected, placed, altered, expanded, maintained or permitted to remain on any portion of the Property until Plans have been submitted to and approved in writing by the Operator. All required Plans shall be submitted to the Operator in writing, signed by the Owner or prospective Owner of the affected Parcel. If an application is submitted by a Lessee or prospective Owner, the Owner of the affected Parcel shall execute the Plans indicating its approval thereof. All drawings, designs, and materials must be accurate and complete. A plan review fee in the initial amount of Five Hundred Dollars ($500.00) payable to the Operator will be charged by the Operator. Plans shall be submitted to Operator's office at: Ld 6-etc t'/t) &,.e/f/ Cc artn;&.‘,-31 - A/Atriv -6/i/D,Saiklizirlaazh>v, dif 2 z 8.3?, 5 or such other address as designated by Operator in a writing delivered to each Owner pursuant to Section 13.9 hereto. The plan review fee may be modified by the Operator to reflect changed circumstances, such as increased costs due to inflation. If the Association has become the Operator pursuant to Section 3.1 hereof, then the Operator's duties and rights under this Article 4 shall be performed by, and inure to, the Committee. Plans shall be submitted as follows: 4.2.1 General Requirements. Two (2) copies of each submittal are required. One copy will be returned to the applicant with comments. Parcel numbers must be included on all plans and other documents submitted for review. 4.2.2 Preliminary Plan. All applicants shall submit a preliminary plan or plans ("Preliminary Plan"), which shall set forth and/or depict the following information: (a) (b) (c) (d) (e) (f) (g) the location of any reciprocal access affecting adjacent Parcels; setbacks; the existing Parcel topography; finished grades; drainage and utility connections to existing lines; building elevations, indicating materials; building and roof lines;

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the height of all exterior design elements; exterior colors and finishes; the location and method of screening exterior storage areas; trash enclosures; walkway and security lighting, including catalogue cuts of fixtures; a conceptual landscape plan depicting planting areas; (n) the location, dimension and general form of proposed temporary and permanent signage, in compliance with all applicable regulations imposed by the County or any other applicable governmental entity and the Design Guidelines; and (o) a description of sound attenuation measures, if applicable.

The Preliminary Plan shall be submitted and approved by the Operator before a Final Plan is submitted. 4.2.3 Final Plan. Following approval of a Preliminary Plan by the Operator, all applicants shall submit a final plan ("Final Plan"), which shall include the following information: (a) (b) (c) (d) revisions required by the Preliminary Plan review; construction details; specifications if requested; exterior color samples;

(e) complete landscape plans showing the location and types of trees, shrubs, ground cover and irrigation systems; and (1) energy and water conservation measures to be taken.

4.3 Modifications to Plans and Improvements. Changes in the Preliminary or Final Plan approved by the Operator must be re-submitted to and approved by the Operator pursuant to this Article 3. 4.4 Basis for Disapproval. The Operator may disapprove the Preliminary or Final Plan or any changes thereto in its sole discretion. In reviewing or approving any submittal, the Operator shall not be responsible for determining compliance with any governmental land use or building construction ordinances or requirements, or the Development Agreement. 4.5 Decision of the Operator. The Operator may approve, conditionally approve, or disapprove the Preliminary or Final Plan, or any changes thereto, on the basis set forth in

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Section 4.4. One (1) set of the Preliminary and Final Plans and any other document submitted to the Operator shall be returned to the applicant with the approval, conditional approval or disapproval endorsed thereon, and the other set shall be retained by the Operator for its permanent files. If the Operator, or its designated Time for Approval or Disapproval. 4.6 representative, fails to approve, conditionally approve or disapprove the complete Preliminary or Final Plan or other documents submitted to the Operator, in writing, within thirty (30) days after the Operator's receipt of a complete application for such approval and the plan review fee, it shall be conclusively presumed that the Operator has disapproved the same unless the applicant has delivered to the Operator, within fifteen (15) days after the expiration of the thirty (30) day period, a notice in writing setting forth the date of initial submittal of the complete application to the Operator and the fact that no approval or disapproval has been given as of the date of such notice. If the Operator fails to either approve or disapprove the application on or before the fifteenth (15th) day after the Operator's receipt of such notice, the provisions of this Declaration requiring approval of such Plans or other documents by the Operator shall be deemed to have been waived by the Operator with respect to such plans; provided, however, that such waiver shall not be deemed to be a waiver of any other covenant, condition or restriction provided herein. 4.7 Appeals. If the Association has become the Operator, and the Committee is making the decisions of the Operator hereunder, then the decision of the Committee may be appealed to the Board, and the decision of the Board shall be final and binding on all parties. The Board may amend its decision only with the consent of the Owner of the Parcel on which the Improvement is to be located. In making a decision on such an appeal, the Board shall apply the same criteria to be applied by the Committee pursuant to this Article 4. 4.8 Development Requirements of City. The Property is subject to and each Owner shall comply with the development criteria, restrictions and other requirements set forth by all applicable governmental entities. The City, or other applicable governmental entity, has the right to review and approve development plans for each Parcel pursuant to policies and standards promulgated, approved or adopted by said City or other applicable governmental entity, including without limitation, zoning ordinances. The review by the City or other applicable governmental entity may include, but shall not be limited to, sign location, landscaping, access drives and building architecture. If any requirement imposed by the City or other applicable governmental entity is different from a requirement contained herein, the more restrictive requirement shall prevail. Each Owner and Occupant is responsible for identifying and conforming with all City or other applicable governmental entity requirements and Laws. 4.9 Submission of Plans to City or Government. Without the prior written consent of the Operator, no plans, specifications or other documents to be submitted to the Operator pursuant to this Article 4 shall be submitted to the City or any other governmental agency prior to obtaining the approval of the Operator. If plans, specifications or documents approved by the Operator are subsequently modified by the City or other governmental action, the modifications must be submitted to and approved by the Operator in writing, pursuant to the procedures specified in this Article 4. Upon City or other governmental approval of any such plans,

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specifications or documents, whether or not they have been modified, one complete approved set hereof shall be furnished to the Operator. 4.10 Requirements of Development Agreement. The Property is subject to and each Owner and Occupant shall comply with the development criteria restrictions and other requirements set forth in the Development Agreement, 4.11 Proceeding with Work. Upon approval of the Final Plan by the Operator pursuant to this Article 4, the Owner to whom the approval is given shall satisfy all conditions thereof and shall diligently proceed to commence the approved construction within one (1) year after the date of such approval, or within such other time period which may be requested by the party submitting the Plans and reasonably approved by the Operator. If the approved construction is not commenced within said one (1) year or other approved time period, the approval given by the Operator pursuant to this Article 4 shall be deemed revoked, unless the Operator, upon written request made prior to the expiration of said time period, extends the time for commencing work. 4.12 Completion of Work. Once commenced, all construction work shall be prosecuted diligently to completion in accordance with the approved Final Plan. Work in progress shall not cease for a period in excess of thirty (30) days. Construction or alteration of any Improvements shall be completed within two (2) years after the commencement thereof; except and for so long as such work is rendered impossible, or would result in great hardship, due to strikes, fires, national emergencies, natural calamities, or other supervening forces beyond the control of the Owner or its agents. Failure to comply with this Section 4.12 shall constitute a breach of this Declaration and shall subject the breaching party to all enforcement procedures and remedies provided under the Project Documents or available at law or in equity. Upon completion of construction of any Improvement, one complete set of as-built plans shall be submitted to and maintained by the Operator. 4.13 Estoppel Certificate. Upon payment of a reasonable fee, in an amount set by the Operator, and upon written request of any Owner, accompanied by an ALTA or certified as-built survey of the Parcel if the Operator does not have such a survey in its files, the Operator shall issue an acknowledged certificate certifying that, as of the date thereof, either: (a) all Improvements located on a specific Parcel comply with the provisions of this Declaration; or (b) such Improvements do not so comply, in which event the certificate shall identify the noncomplying Improvements and set forth with particularity the reason(s) for such non-compliance. Such certificate shall be furnished by the Operator within a reasonable time, but not to exceed thirty (30) days after receipt of a written request for such a certificate. Any prospective Owner or Mortgagee in good faith and for value shall be entitled to rely on said certificate with respect to the matters set forth therein solely for purposes of determining the compliance of said Improvements with this Declaration, such matters being conclusive upon all parties in favor and such subsequent parties in interest. 4.14 No Liability for Approval Errors. Declarant, the Operator and their delegated agents shall not be liable for any damage, loss or prejudice suffered or claimed by any Person on account of nor shall any Owner or any other Person claim exemption from this Declaration or other relief due to: (a) the approval or disapproval of any plans or specifications; (b) the construction or performance of any work or improvement; (c) any defects in any plans, drawings,

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specifications or other documentation or any structural or other defects in any work, whether or not pursuant to approved plans or specifications; (d) the development of any Parcel; or (e) the execution and filing of an estoppel certificate pursuant to Section 4.13, whether or not the facts therein are correct, provided that the Operator has acted in good faith in issuing such estoppel certificate on the basis of such information as may be possessed by it. Each Owner or other Person who submits Plans or other documents to the Operator shall indemnify, protect, hold harmless and defend Declarant, the Operator and the agents of each such party harmless from and against all liabilities, losses, claims, damages, costs, loss or prejudice suffered or claimed by any Person on account of any of the matters described above in this Section 4.14. The sole remedy of any Owner or other Person shall be to request a court order requiring Declarant and/or the Operator, as applicable, to act in accordance with this Declaration. 4.15 Disclosure and Waiver of Conflict of Interest. The Committee members may be appointed by, affiliated with or employed by Declarant. If Declarant submits any Plans to the Committee for approval, the Committee members may have a conflict of interest in rendering their decisions. Neither Declarant nor any Committee member shall have any liability to any Owner or other Person as a result of decisions which may benefit Declarant rendered in good faith by the Committee or any Committee member, and each Owner hereby waives any claim of liability against Declarant, the Committee or any Committee member, based upon such conflict of interest. Nothing in this Section 4.15 is intended to limit the application or meaning of Section 3.5 above. ARTICLE 5 IMPROVEMENT STANDARDS AND LIMITATIONS Each Owner, including Declarant, shall be bound by and shall develop, maintain and operate its Parcel in accordance with this Declaration, the Development Agreement, the Specific Plan, the Project Master Plan, as applicable, and all applicable Laws, including the Design Guidelines, which Design Guidelines are incorporated herein by this reference and shall form a part of this Declaration as if fully set forth herein. ARTICLE 6 REGULATION OF OPERATIONS AND USES 6.1 Permitted Uses. Unless otherwise specifically prohibited herein, permitted uses shall include those uses permitted by applicable City or other governmental entity zoning and land use regulations and the Design Guidelines, including, without limitation, timeshare use, provided such use is performed or carried out entirely within a building that is so designed and constructed that the operations and uses comply with: (a) all Laws, (b) the provisions of this Declaration, and (c) the Development Agreement, the Specific Plan and the Project Master Plan. If applicable Law is less restrictive than the provisions of this Declaration, the more restrictive provision shall apply. 6.2 Prohibited Uses. Without limiting the provisions of Section 6.1 or any other provision of this Article 6, no Parcel shall be used for any of the following activities or purposes:
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Any use which, in the Operator's sole and absolute discretion, is (a) considered to be objectionable as an intrusion into the environment by sound, odor, visual effect or physical impact or that will disturb or tend to disturb the other Owners, or Occupants in the Property or that will adversely affect the value of the Property; (b) (c) parks or sale facilities; and Camping; Mobile home sales or mobile home, trailer or recreational vehicle

Commercial, retail, industrial or manufacturing uses, excluding (d) (i) retail and sales uses which are ancillary to hotel, timeshare or golf clubhouse uses, (ii) service stations, and (iii) restaurants. Nuisances. No noxious or offensive trade or activity shall be permitted upon any 6.3 part of the Property, nor shall anything be done thereon which shall in any way interfere with the quiet enjoyment of each of the Owners, Occupants and Homeowners, or which shall in any way increase the rate of insurance carried by the Operator, any Owner or any Homeowner. No plants or seeds infected with insects or plant diseases, shall be brought upon, grown or maintained upon any part of the Property. No motorcycles, dirt bikes or other mechanized vehicles may be operated upon any portion of the Common Area not improved as a street or a Parking Area without, written approval of the Board, which approval may be withheld for any reason whatsoever. Alarm devices used exclusively to protect the security of a Residence or an automobile and its contents shall be permitted, provided that such devices do not produce annoying sounds or conditions as a result of frequently occurring false alarms. No rifle, shotgun, pistol, revolver or firearm of any kind shall be shot, fired or discharged anywhere within the Property. No explosive of any kind shall be detonated anywhere in the Property, except to the extent permitted by the applicable governmental agency and then only upon the issuance of any required permit(s) by the applicable governmental agency having jurisdiction. No rubbish or debris of any kind shall be placed or permitted to accumulate upon any portion of the Property for any unreasonable time, and no odors shall be permitted to arise therefrom, so as to render the Property or any portion thereof unsanitary, unsightly, offensive or detrimental to any other portion of the Property in the vicinity thereof or to any Owner or Occupant. No loud, noxious or offensive activity shall be carried on or permitted on any part of the Property, nor shall anything be done thereon which may be, or may become, an annoyance or nuisance to Persons or property in the vicinity of such Lot or Parcel, or which shall interfere with the quiet enjoyment of an Owner or Occupant. 6.4 Compliance with Laws, Regulations, Permits or Certificates of Occupancy. No Owner, Lessee, Occupant or Homeowner shall permit any activity, use or operation on any portion of the Property in violation of any Law. Each Owner, Lessee, Occupant and Homeowner shall, upon written notice from the Operator, discontinue any use which is declared by any governmental entity having such jurisdiction to be a violation of any Law. Each Owner, Lessee, Occupant and Homeowner shall, immediately upon receipt from any governmental entity of an alleged violation of any Law, provide a copy of such allegation to the Operator, notwithstanding such party's belief that meritorious defenses to such allegations exist. No representation is made

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that compliance with the use regulations specified in this Declaration will satisfy other legal requirements. 6.5 Hazardous Materials. Without limiting the provisions of Section 6.4:

Each Owner, Lessee, Occupant and Homeowner shall strictly (a) comply with all Laws now or hereafter promulgated with respect to the use, generation, storage, transportation or disposal of hazardous, toxic or radioactive materials (collectively, "Hazardous Materials"). As used herein, "Hazardous Materials" shall include, but not be limited to, those materials identified as hazardous or toxic substances, materials or wastes pursuant to the Comprehensive Environmental Response, Compensation and Liability Act of 1980 ("CERCLA"), as amended, 42 U.S.C. Section 9601, et seq., the Resource Conservation and Recovery Act ("RCRA"), 42 U.S.C. Section 6901, et seg., the Hazardous Materials Transportation Act, 49 U.S.C. Section 5101, et seq., the California Hazardous Waste Control Act, California Health and Safety Code Section 25100, et seq.; the Carpenter-Presley-Tanner Hazardous Substance Account Act, California Health & Safety Code Section 25300, et seq., the Safe Drinking Water and Toxic Enforcement Act, California Health & Safety Code Section the Porter-Cologne Water Quality Control Act, California Water Code Section 25249.5, et 13000, et seq., any amendments to and any regulations promulgated pursuant to the foregoing, and any similar federal, state or local Laws. No Owner, Lessee, Occupant or Homeowner shall discharge or (b) release any Hazardous Material on or under the surface of the Property or into the surface or groundwaters of the Property in violation of any Laws. No Owner, Lessee, Occupant or Homeowner shall: (i) discharge (c) any hazardous air pollutant regulated under the National Emissions Standards for Hazardous Air Pollutants by the United States Environmental Protection Agency; (ii) discharge any toxic air contaminant classified as such by the California Air Resources Board under the California Health and Safety Code; nor (iii) discharge any hazardous air pollutant or toxic air contaminant regulated by any other Law unless such emissions are in full compliance with all applicable Laws. (d) Each Owner, Lessee, Occupant and Homeowner shall indemnify, protect, hold harmless, and defend Declarant, the Operator, and each other Owner, Lessee, Occupant and Homeowner from and against all liabilities, losses, liens, damages, claims, costs and expenses directly or indirectly arising out of the generation, storage, disposal, release or discharge of Hazardous Materials or hazardous air pollutants by such indemnifying party, including but not limited to, the cost of any required monitoring, investigation, clean up, removal, detoxification, preparation of plans or other remedial work. The strict compliance by an Owner, Lessee, Occupant or Homeowner with all Laws pertaining to Hazardous Materials shall not excuse such party from its obligation of indemnification pursuant to this Section 6.5. 6.6 Necessary Permits. Prior to commencement of any operation or use upon a Parcel, each Owner, Lessee or Occupant shall demonstrate to the Operator that such party has obtained all necessary permits for the operation or use proposed by such party.

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Access. The Operator, and its agents, shall have the right, but not the obligation 6.7 to enter upon a Parcel as provided in Section 11.2.2 for the purpose of inspecting the same to determine compliance with Article 6. In addition, the Operator may require disclosure of any applicable information relating to the applicable Laws or permits and any other evidence necessary to assure the Operator of an Owner's compliance with said Laws. Rules and Regulations. The Operator shall have the right to prepare reasonable 6.8 Rules and Regulations relating to the use, management and maintenance of the Common Areas and the facilities and Improvements located thereon, and to the conduct of Owners, Lessees, Homeowners, Occupants and guests with respect to the Property and other Owners, including, without limitation, reasonable restrictions on (a) night lighting from any Parcel that would interfere with the quiet enjoyment of any Unit, (b) noise, (c) times for construction of Improvements and location of construction staging areas and usage of vehicles and construction equipment on any Parcel, (d) parking of motor vehicles, and (e) waste disposal. The Operator shall have the right to amend, supplement or repeal any of the Rules and Regulations, from time to time, subject to obtaining written approval of the Owners holding sixty-seven percent (67%) of the Voting Rights PROVIDED that after the date on which both of the following conditions have been met: (i) the Association has been formed and the role of the Operator has been assumed by the Association, and (ii) no single entity or group of affiliated entities, including without limitation Declarant, holds or has the ability to significantly influence or control more than fifty percent (50%) of the Voting Rights, the Rules and Regulations may be amended by the written consent of the Owners then holding not less than sixty percent (60%) of the Voting Rights. The Rules and Regulations, as so amended and supplemented, shall be binding on all Owners, Lessees, Homeowners, Occupants and guests. In the event of any inconsistency between the Rules and Regulations and this Declaration, this Declaration shall govern to the extent of the inconsistency. 6.9 Parking. Any and all parking shall be in compliance with all applicable Laws. Parking areas shall be limited to use for parking purposes. Storage of materials in designated parking areas on each Parcel is hereby prohibited. 6.10 Noises and Noxious Odors. No exterior speakers, horns, whistles, bells or other sound devices (other than security devices used exclusively for security purposes), noisy or smoky vehicles, unlicensed off-road motor vehicles or items which may unreasonably interfere with the television or radio reception of any Residence, shall be located, used or placed on any portion of the Property, or exposed to the view of other Owners. No loud noises or noxious odors shall be permitted to emanate from the Property. The Association shall have the right to determine in accordance with the provisions for hearing and notice set forth in the Project Documents if any noise, odor, interference or activity producing such noise, odor or interference constitutes a nuisance. Noise associated with the construction of a Residence shall be temporarily permitted until completion of the construction of the Residence, subject to any Rules and Regulations. 6.11 Temporary Structures. A construction trailer, temporary storage shed and temporary on-site sanitary facilities shall be permitted upon a Lot during the period of time during which a Residence and related amenities are being constructed upon such Lot. Upon the completion of construction activity any such temporary facilities shall be promptly removed

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from the Lot. No structure of a temporary character, whether it is a trailer, basement, tent, shack, garage, barn or other out-building shall thereafter be placed upon or used on any Residence at any time, either temporarily or permanently. 6.12 Oil and Mineral Rights. No oil drilling, oil development operations, oil refining, quarrying, or mining operations of any kind shall be permitted upon or in the Property nor, subsequent to the recording of this Declaration, shall oil wells, tanks, tunnels, or mineral excavations or shafts be installed upon the surface of the Property or within five hundred (500) feet below the surface of such properties. No derrick or other structure designed for use in boring for water, oil or natural gas shall be erected, maintained or permitted upon the Property. 6.13 Use of Golf Courses, Hotels and Other Property. The Property includes real property which is currently used or proposed to be developed and operated as golf course facilities, hotels, and timeshares. These particular uses are located on the property described on Exhibit D to this Declaration. Although it is contemplated that the particular sites described on Exhibit D will be developed and will be continued to be used and operated in a manner consistent with the uses depicted thereon, there is no assurance and Declarant expressly disclaims any obligation to any Owner to so continue, operate and maintain the sites in accordance with such uses. In connection with the operation of the Golf Course Area and the timeshare site, and the use of other property adjacent to the Property, the Owner and Homeowner are advised that the use and enjoyment of its Parcel or Residence may be impacted by all or some of the following, the risks and special benefits and burdens of which each Owner and Homeowner by their acquisition of an interest in any Unit, Lot or Parcel, acknowledges, accepts and assumes to fullest extent permitted by Law: ingress and egress by patrons over the Golf Course Area by (a) pedestrian means and by golf carts in connection with the use and enjoyment of the Golf Course Area and by the owner of the Golf Course Area by pedestrian and vehicular means in connection with the maintenance or improvement thereof; (b) occasional noise associated with the use and enjoyment of the Golf Course Area by patrons and by spectators and by the maintenance by the owner thereof; the establishment, operation, use and maintenance of detention (c) basins within the Property or the Golf Course Area for the purpose, in part, of assuring compliance with stormwater regulatory requirements; (d) the construction and operation of hotel facilities, including, without limitation, noise associated therewith from the patrons and the employees thereof and the providing of services thereto; the construction and operation of timeshares facilities, including, (e) without limitation, noise associated therewith from the patrons and the employees thereof and the providing of services thereto; and 11111
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the over-flight of golf balls, which are not susceptible of being (f) easily controlled and accordingly may land or strike beyond the golf course boundaries. ARTICLE 7 RESERVATIONS OF EASEMENTS AND RIGHTS Easements Over Common Areas. The Common Areas are subject to the 7.1 following easements: There is hereby reserved to Declarant, the Operator, and their (a) agents and representatives, an easement in, over, under and across all Common Areas for the purpose of egress and ingress, and installation, maintenance and repair of landscaping, and as necessary to exercise the rights and to perform the Operator's duties set forth in this Declaration. Owners shall not remove, modify or alter said landscaping without Operator's prior written approval pursuant to the terms of Article 4 hereof. Declarant hereby reserves for itself, the Operator, and their agents (b) a non-exclusive easement for ingress and egress over each Parcel for the purpose of maintaining the landscaping installed in the Common Areas on each Parcel. Declarant hereby reserves for itself, the Operator, the Owners and (c) their agents a non-exclusive easement over the Common Areas for the purpose of constructing, erecting, operating and maintaining thereon, therein or thereunder the Common Facilities. The Common Areas, including all areas subject to the easements reserved in this Section 7.1, shall be maintained as further described in Article 8. 7.2 Easement for Performance and Discharge of Rights and Duties. Declarant hereby reserves for itself, the Operator and their agents a non-exclusive easement for ingress and egress over the Property and each Parcel for the purpose of permitting the Operator, Declarant and their agents to discharge their rights and obligations as described in this Declaration, including but not limited to, construction of Improvements on the Property provided however, that to the extent it is for purposes other than the fulfillment of its duties as Operator, Declarant shall access a Parcel 2 only upon reasonable notice upon times reasonably convenient to the Owner thereof. 7.3 Access. Each Parcel is hereby declared to have a non-exclusive easement over the roads ("Roads") of each other Parcel for the use and purpose of ingress and egress by any Owners, Homeowners, and Users and any motor vehicles of such Owners, Homeowners, and Users to and from any Parcel and Owners, Homeowners, and Users' access to and from the public streets adjacent to the Property. Declarant is hereby declared to have a non-exclusive easement over the Roads of each Parcel for the use and purpose of repairing and maintaining said areas in the exercise of Declarant's right to enforce this Declaration pursuant to the terms of Article 11 hereof. No Owner shall obstruct or block the use, entrance or exit of any Roads. Declarant shall have the right to enter any Parcel and remove any item that is obstructing or blocking the Roads, and assess the Owner responsible for said obstruction a Reimbursement Assessment pursuant to Section 9.8 hereof
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Utilities. Declarant hereby reserves for itself, the Operator, the Owners and their 7.4 agents a non-exclusive easement over the Property for the purpose of the installation and maintenance of electric, telephone, cable television, telecommunication lines and services, water, gas, and sanitary sewer lines and drainage facilities as shown on any pertinent recorded final tract or parcel map covering the Property. By virtue of this easement, it shall be expressly permissible for the providing utility company (or the Operator, in the event the Operator provides said services) to erect and maintain the necessary equipment and facilities on the Common Areas, but no sewers, electrical lines, water lines or other utility or service lines may be installed or located on the Common Areas except as initially designed and constructed therein by Declarant and as demarcated on Exhibit C-1 and C-2, or thereafter as approved by the Owners holding sixty-seven percent (67%) of the Voting Rights PROVIDED that after the date on which both of the following conditions have been met: (i) the Association has been formed and the role of the Operator has been assumed by the Association, and (ii) no single entity or group of affiliated entities, including without limitation Declarant, holds or has the ability to significantly influence or control more than fifty percent (50%) of the Voting Rights, such change shall be effected by the written consent of the Owners then holding not less than sixty percent (60%) of the Voting Rights. This easement shall in no way affect any other recorded easements on the Common Areas. All utilities used by the Common Areas and Common Facilities shall be separately metered from the other portions of the Property. Entry by Owners. In connection with any entry by an Owner, including 7.5 Declarant, onto any Common Areas for purposes of performing any work in connection with the construction, use, operation or development of its Parcel, such Owner shall, at its expense: (a) Maintain, at all times during such period of entry, commercial general liability insurance with a combined single limit per occurrence of at least One Million Dollars ($1,000,000) or such higher minimum as may reasonably be required by the Operator from time to time, naming the Operator (and the fee owner of such Common Areas if other than the Operator), as additional insureds, and providing that such coverage shall not be terminated or modified without at least thirty (30) days' prior written notice to the Operator; (b) Deliver to the Operator a certificate evidencing that such insurance is in full force and erect prior to entry onto such Common Areas; (c) Perform all work in a safe manner, insure that no hazardous condition remains on such Common Areas, and repair any damage thereto; (d) Keep such Common Areas free and clear of all mechanics' or materialmen's liens arising out of such Owner's activities; (e) Comply with all applicable Laws in connection with such work;

Indemnify, protect, hold harmless and defend the Operator and the (f) fee owner of such Common Areas from and against all liabilities, losses, liens, claims, damages, costs and expenses (including attorneys' fees and court costs) for labor or services performed or materials furnished in connection with such Owner's entry, or for personal injury, death or
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property damage, arising out of such Owner's entry or breach of the provisions of this Section 7.5; and Provide the Operator with prior written notice of its intended entry (g) and cooperate with the Operator and/or any utility company to minimize any interference with the Operator's and/or any utility company's ability to perform its duties or services. Easements Reserved and Granted. Any easements referred to in this Declaration 7.6 shall be deemed reserved or granted, or both reserved and granted, as applicable, in a deed to any Parcel notwithstanding that such deed fails to reference this Declaration or such reservation or grant. All easements reserved in this Article 7 to Declarant, Operator, and any Owners, if any, shall be appurtenant to and shall pass with title to each Parcel and are subject to the Rules and Regulations and the other restrictions set forth in Article 8. 7.7 Reservation by Declarant and Operator. Declarant and Operator hereby reserve the right to subsequently grant and create additional easements over one or more of the Parcels, including any Common Areas contained therein, for the benefit of one or more other Parcels, provided, and upon condition that, the grant of such additional easement does not materially interfere or impede an Owner's use of its Parcel(s) and provided that a written notice of seventyfive (75) one hundred twenty (120) days shall be given to the Owner impacted by such proposed easement. 7.8 Owner's and Homeowners' Easements of Enjoyment of the Common Areas. Every Owner shall have a right and easement of enjoyment in and to the Common Areas which right and easement shall be appurtenant to and shall pass with the title to such Owner's Parcel. This right and easement is subject to all rights and easements set forth in this Declaration. Owner's and Homeowners' Easements for Ingress and Egress. There are hereby 7.9 created easements for ingress and egress for pedestrian traffic over, through and across sidewalks, stairs, paths, walks and lanes that from time to time may exist upon the Common Areas. There is also created an easement for ingress and egress for pedestrian and vehicular traffic over, through and across such driveways and parking areas as from time to time may be paved and intended for such purposes except that such easements shall not extend beyond the Common Areas. Such easements shall run in favor of and be for the benefit of the Owners and Occupants. 7.10 Oil, Mineral Rights, Water Rights, Cable Television and Drainage Monitoring. Declarant hereby reserves, together with the right to grant and transfer all or a portion of same: (a) All oil, oil rights, minerals, mineral rights, natural gas rights, and other hydrocarbons by whatsoever name known, geothermal steam, and all products derived from any of the foregoing, that may be within or under the Property together with the perpetual right of drilling, mining, exploring and operating therefor and storing in and removing the same from said land or any other land, including the right to whipstock or directionally drill and mine from lands other than the Property, oil or gas wells, tunnels and shafts into, through or across the subsurface of the Property and to bottom such whipstocked or directionally drilled wells, tunnels and shafts under and beneath or beyond the exterior limits thereof, and to redrill, retunnel, equip,

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maintain, repair, deepen and operate any such wells or mines without, however, the right to drill, mine, store, explore and operate through the surface or the upper five hundred (500) feet of the subsurface of the Property; provided however, this Section 7.10(a) shall not apply to f Parcel 2. Any and all water, water rights or interests therein appurtenant or (b) relating to the Property or owned or used by Declarant in connection with or with respect to the Property (no matter how acquired by Declarant), whether such water rights shall be riparian, overlying, appropriative, littoral, percolating, prescriptive, adjudicated, statutory or contractual, together with the right and power to explore, drill, redrill, remove and store the same from or in the Property or to divert or otherwise utilize such water, rights or interests on any other property whether or not such other property is owned or leased by Declarant; but without, however, any right to enter upon the surface of the Property in the exercise of such rights. The right to place on, under or across the Property, transmission (c) lines and other facilities for a community antenna television system (and/or the Telecommunications System) and thereafter to own and convey such lines and facilities, and the right to enter upon the Property to service, maintain, repair, reconstruct and replace said lines and facilities; provided, however, that the exercise of such rights shall not unreasonably interfere with an OwnerOs reasonable use and enjoyment of the Property. Easements over the Property for the monitoring, testing and (d) sampling of drainage discharged from any portion of the Property either into any public or private drainage systems, by sheet flow or by other means or which is otherwise discharged or drains into adjacent real property. (e) Any easements shown on any recorded final tract or parcel map covering the Property, including, but not limited to, easements for ingress and egress over any bicycle, pedestrian, equestrian or other trail shown. The reservation of this easement shall not imply any right of public use of the Property or Improvements. 7.11 Signage Easement. Declarant hereby reserves on behalf of each of the Owners, a nonexclusive easement over the Common Areas for the construction, maintenance and use of signage directing their respective Users to the Owner's Parcel. All signs located within the foregoing easement shall be subject to (i) the review and approval of the Operator, (ii) applicable governmental requirements and (iii) Operator's right to place and maintain signs pursuant to Section 8.4. ARTICLE 8 MAINTENANCE AND USE OF THE PROPERTY AND COMMON AREAS 8.1 Management and Maintenance by Operator. The administration of this Declaration as it applies to the Property and the Common Areas and the management of the Common Areas and Common Facilities shall be vested in the Operator, subject to delegation of specific maintenance obligations pursuant to this Article 8. In order to implement the power of administration established by this Declaration and management of the Common Areas and Common Facilities, the Operator shall have the powers set forth in Section 3.4 of this Declaration and elsewhere in the Project Documents.
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Maintenance Caused by Owners, Etc. The Operator shall not be responsible for 8.2 maintenance and repair of any Common Areas arising out of or caused by the willful or negligent act or omission of any Owner, Lessees, Homeowners, Occupants or guests, and such repairs or replacements shall be the responsibility of such Owner or Homeowner. If the Owner or Homeowner fails to perform such repairs and replacements within thirty (30) days after receipt of a written notice (or such shorter time as may be appropriate under the circumstances if necessary to protect the health, safety or welfare of the Owners, Lessees, Homeowners, and Occupants), the Operator shall have the right (but not the obligation) to make such repairs or replacements, and the cost thereof shall be charged to such Owner and its Parcel(s) or such Homeowner and its Lot or Lots, as applicable, as a Reimbursement Assessment as defined in Section 9.8. Common Area Restrictions. Use of the Common Areas and Common Facilities 8.3 shall be subject to: (a) the reserved rights described in Article 7; (b) the Rules and Regulations; and (c) the other provisions of this Declaration. Other than the work performed or approved by the Operator in connection with the development of the Property, the Common Areas shall not be planted, altered, or improved, and nothing shall be removed therefrom without the written consent of the Operator and the Owners holding sixty-seven percent (67%) of the Voting Rights. 8.4 Signs. Subject to applicable governmental requirements, the Operator may place and maintain on the Common Areas such signs as it may deem necessary in order to identify the Property, regulate traffic access and parking, facilitate use of the Common Areas, and protect the health, safety and welfare of all Owners, Lessees, Occupants, Homeowners, agents, employees and guests. No signage of any type shall be installed without prior written approval by Operator. Submittals to Operator shall include accurate color rendered plans and elevations indicating materials of construction, colors, fabrication details, copy and logos, lighting details (if applicable), size(s) and location(s) proposed. Submittals shall comply with the terms noted in Section 4.2 of this Declaration. 8.5 Intentionally Omitted

8.6 Destruction, Restoration. As soon as practicable after the damage or destruction of any Common Facilities for which the Operator is responsible to repair, reconstruct or restore hereunder, the Operator shall: (a) obtain bids from at least two (2) reputable contractors, licensed in California, which bids shall set forth in detail the work required to repair, reconstruct and restore such damaged or destroyed areas to substantially the same condition as existed prior to such damage and the itemized cost of such work; and (b) determine the amount of all insurance proceeds available to the Operator for the purpose of effecting such repair, reconstruction and restoration. If the insurance proceeds available to the Operator are sufficient to effect the total repair, reconstruction and restoration of the damaged or destroyed areas, then the Operator shall cause such to be repaired, reconstructed and restored to substantially the same condition as existed prior to such damage. If the proceeds of insurance available to the Operator are insufficient to cover the cost of repair, reconstruction and restoration, the Operator shall levy a Special Assessment for all additional funds needed to comply with the obligation of the Operator to maintain the Common Areas in accordance with this Article 8.

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Eminent Domain. In the event of a "taking" of any Common Areas, the Operator 8.7 shall act in its sole discretion with respect to any awards being made in connection with the taking and shall be entitled to make a voluntary sale to the condemnor in lieu of engaging in a condemnation action. Any awards received on account of a taking of Common Areas shall be paid to the Operator and shall be retained in the general funds of the Operator subject to the prior rights of any Mortgagee holding an encumbrance upon any Common Areas for which such award has been paid. For purposes hereof, "taking" shall mean condemnation by eminent domain, or by sale under threat thereof, of all or a part of the Common Areas. Each Owner shall be responsible for its Percentage Share of the costs incurred by the Operator pursuant to this Article 8, through assessments levied in accordance with Article 9. ARTICLE 9 FUNDS AND ASSESSMENTS Agreement to Pay Maintenance Assessments; Creation of Lien and Obligation. 9.1 Declarant, for each Parcel, hereby covenants and agrees, and each Owner of any Parcel by such Owner's acceptance of a conveyance therefor, whether or not it shall be expressed in such conveyance, is deemed to covenant and agree, for each such Parcel, to pay to the Operator: (a) annual Regular Assessments, as described in Section 9.6; (b) Special Assessments, as described in Section 9.7; (c) Reimbursement Assessments, as described in Section 9.8; and (d) such other assessments which the Operator is authorized to levy pursuant to this Declaration. Assessments levied by the Operator shall be used to pay the Common Expenses, in order to enhance, maintain and protect the desirability, attractiveness, and safety of the Property, and to reimburse the Operator for the costs incurred in bringing an Owner into compliance with the Project Documents, and for any other purpose which in the reasonable judgment of the Operator shall be for the common good of the Property. Assessments, together with interest, costs and reasonable attorneys' fees, shall be a charge and a continuing lien on the Parcel against which each such assessment is made and the Improvements located thereon, which lien shall be effective upon Recordation of a notice pursuant to Section 1 1 .3.3. Each such assessment, together with interest, costs and reasonable attorneys' fees, shall also be the personal obligation of the Owner of such Parcel at the time such assessment and other sums are levied. If more than one Person is the Owner of a Parcel, the personal obligation to pay such assessment shall be joint and several. The personal obligation for delinquent assessments shall not pass to an Owner's successors in title, unless expressly assumed by them, but any lien created hereunder shall remain a charge upon the affected Parcel. 9.2 No Waiver by Non-Use. No Owner may exempt itself from payment of assessments by waiver of the use or enjoyment of all or any portion of the Common Areas or by waiver of the use or enjoyment, or by abandonment, of its Parcel. 9.3 Budgets. At least thirty (30) days prior to the date for commencement of Regular Assessments pursuant to Section 9.6.2, and at least thirty (30) days prior to each calendar year thereafter, the Operator shall prepare or cause to be prepared and distribute to all Owners a pro forma operating budget ("Budget") for such first or successive calendar year setting forth the estimated revenue and expenses on an accrual basis. The Budget shall include a reasonable allowance for contingencies, replacements and reserves. If the Association has become the

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Operator pursuant to Section 3.1 hereof, then the Association shall deliver, together with the Budget, notice of the Members' right to obtain copies of minutes of Board meetings, to the extent required under California Civil Code Section 1363. The Operator has prepared an estimated Budget for the first operating period and it is attached as Exhibit F. The administrative expense of the Operator shall not exceed ten percent (10%) of the total Budget. On a subdivision of any one of the Parcels for residential use, the Owner will be required to obtain a Reserve Study for DRE approval. To the extent such Reserve Study results in different amounts required for reserves, then the Operator agrees it will adjust its Budget to conform to the DRE approved Budget. , Allocation of Assessments. All Parcels within the Parcels Subject to Assessment. 9.4 Property and the Improvements located thereon are subject to Regular Assessments, Special Assessments and Reimbursement Assessments as well as any other assessments that the Operator is authorized to levy pursuant to this Declaration. Regular Assessments, and Special Assessments as well as any other assessments that the Operator is authorized to levy pursuant to this Declaration shall be allocated among each Parcel based on the following percentages: Parcel 1: 11%, Parcel 2: 35%, Parcel 3: 17%, Parcel 4: 17%, and Golf Course Parcel: 20% (each such percentage being the Owner's "Percentage Share"). Subassociations or Supplemental CC&Rs. To the extent Owner deems it 9.5 advisable, it shall be responsible for allocating among the different Homeowners within its Parcel voting rights and other rights and responsibilities. The assessments allocated to each Owner shall be deemed levied against each Unit in the Parcel in an amount equal to a fraction of the entire assessment allocated to that Parcel, the denominator of which shall be a number calculated by adding the total number of Units in that Parcel, and the numerator of which is one (1). 9.6 Regular Assessments.

9.6.1 Purpose. "Regular Assessments" shall be used to defray the Common Expenses and the expenses of providing security services, if applicable, pursuant to Section 3.4.7 thereof, and the expenses of providing the telecommunications basic services, if applicable, pursuant to Section 3.4.8. 9.6.2 Date of Commencement of Regular Assessments. Regular Assessments shall commence, as to all Parcels initially subject to this Declaration, on the first (1st) day of the month following the conveyance of the first Parcel by Declarant to an Owner other than Declarant; provided, however, that Declarant may, at its option, delay the start of Regular Assessments so long as Declarant performs all maintenance and other obligations of the Operator at its sole cost and expense. The first Regular Assessments shall be adjusted according to the number of months remaining in the calendar year and shall be prorated for any partial month. 9.6.3 Establishment. Prior to the first Regular Assessments hereunder and thereafter at least thirty (30) days before the beginning of each calendar year thereafter, the Operator shall establish the Regular Assessment for the first or successive calendar year based on the Budget prepared in accordance with Section 9.3, and any other information available to it.

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The Operator shall give written notice of the Regular Assessments to each Owner promptly after establishment thereof. 9.6.4 Revised Regular Assessment. Subject to (i) obtaining the written approval of Owners holding sixty-seven percent (67%) of the Voting Rights; or (ii) upon the occurrence of the following two events: (a) the Association has been formed and the role of the Operator has been assumed by the Association, and (b) no single entity or group of affiliated entities, including without limitation Declarant, holds or has the ability to significantly influence or control more than fifty percent (50%) of the Voting Rights, subject to obtaining the written approval of Owners holding not less than sixty percent (60%) of the Voting Rights, if the Operator reasonably determines that the Regular Assessment established for any year is, or will become, insufficient to meet all Common Expenses, it may determine the approximate amount of such deficiency and revise the amount of the Regular Assessments for each Owner for the balance of such year to reduce or avoid the deficiency. After the end of each calendar year, the Operator shall cause an accounting to be made of all Common Expenses for such year and the amount of Regular Assessments paid for such year. If the Regular Assessments collected exceed the Common Expenses, the Operator may refund the excess to the Owners, or apply such excess toward Regular Assessments next becoming due from the Owners, in either event in the same proportion as the Regular Assessments were paid. 9.6.5 Payment of Assessments. Regular Assessments shall be due and payable by the Owners to the Operator in regular installments as established by the Operator. 9.7 Special Assessments. 9.7.1 Purpose. "Special Assessments" may be levied by the Operator: (a) If the Operator determines that the Regular Assessments are or will be insufficient to defray actual Common Expenses of the Association for a given year due to unanticipated delinquencies or cost increases or unexpected repairs, replacements or reconstruction of any Common Facilities; (b) Operator; or For the purpose of defraying, in whole or in part, the cost of (c) construction of any capital improvements deemed reasonably necessary by the Operator for the benefit of the Property. (d) All Special Assessments must receive written approval of the Owners holding sixty-seven percent (67%) of the Voting Rights. After the date on which both of the following conditions have been met: (i) the Association has been formed and the role of the Operator has been assumed by the Association, and (ii) no single entity or group of affiliated entities, including without limitation Declarant, holds or has the ability to significantly influence or control more than fifty percent (50%) of the Voting Rights, all Special Assessments must receive written approval of the Owners holding not less than sixty percent (60%) of the Voting Rights. If funds are otherwise required for any authorized activity of the

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9.7.2 Establishment. The Operator shall determine the approximate amount necessary to defray the expenses set forth in Section 9.7.1 and such amount shall become a Special Assessment; provided, however, that the Operator may, in its discretion, pro-rate such Special Assessment over the remaining months of the calendar year or levy the full assessment immediately against each Parcel and the Improvements located thereon. 9.7.3 Payment of Assessments. Subject to the provisions of Section 9.7.2, Special Assessments shall be due and payable within thirty (30) days after an Owner receives written notice from the Operator specifying the amount of the Special Assessment, unless the Operator specifies in such notice a later date for payment. 9.8 Reimbursement Assessments.

9.8.1 Purpose. The Operator may levy a "Reimbursement Assessment" against any Owner and such Owner's Parcel or Parcels and the Improvements located thereon: (a) To recover costs ("Noncompliance Expenses") incurred by the Operator as a result of such Owner's or its Lessees' or Occupants' willful or negligent acts or failure to comply with this Declaration, the Rules and Regulations, the Design Guidelines or any other Project Documents, or to impose a fine pursuant to this Declaration; or (b) To recover costs incurred by the Operator in removing any lien against the Common Areas caused by such Owner or its Lessees or Occupants, as described in Section 3.3.3. 9.8.2 Payment of Assessments. Reimbursement Assessments shall be due and payable within thirty (30) days after an Owner receives notice from the Operator specifying the amount of the Reimbursement Assessment. 9.9 Non-payment of Assessments. Any assessment not paid within fifteen (15) days after the due date shall be delinquent and such nonpayment shall constitute a default by the Owner hereunder. If any assessment is not paid within fifteen (15) days after the due date, the Operator shall have the right to collect a late charge equal to ten percent (10%) of the delinquent account or Fifty Dollars ($50.00), whichever is greater. In addition, the delinquent amount shall bear interest from thirty (30) days after the due date at the rate specified in Section 11.4. In the event of a default in the payment of any assessment, the remedies provided in Article 11 shall be available in addition to any other available legal or equitable remedies. Each Parcel Owner shall be responsible for payment of the assessments allocated to the Unit Owners as described in Section 9.5 above. 9.10 No Offsets. All assessments shall be payable in the amounts specified by the particular assessment, and no offsets against such amount shall be permitted for any reason, including, without limitation, a claim that the Operator is not properly exercising its duties of maintenance, operation or enforcement. 9.11 Transfer of Property. After transfer of any Parcel within the Property, the transferring Owner shall not be liable for any assessment levied on its Parcel and the Improvements located thereon after the date such Parcel is transferred and written notice of such

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transfer is delivered to the Operator. The transferring Owner shall remain responsible for all assessments and charges levied on its Parcel and the Improvements located thereon prior to any such transfer. The responsibility of an assessment charged against a Parcel shall be governed by the terms of Section 9.1 hereof. 9.12 Failure to Fix Regular Assessments. The omission by the Operator to fix the Regular Assessments hereunder before the expiration of any calendar year, for the next year, shall not be deemed either a waiver or modification of any provisions of this Declaration or a release of any Owner from the obligation to pay the assessments or any installment thereof for that or any subsequent year, and the Regular Assessment fixed for the preceding year shall continue until new Regular Assessments are fixed. 9.13 Operator Funds. The assessments collected by the Operator shall be deposited into two (2) separate accounts with a savings and loan association or bank selected by the Operator, which accounts shall be designated as: (a) the Maintenance and Operation Account, for maintenance and operation assessments; and (b) the Reserve Account, for reserves for contingencies and the repair and replacement of facilities and Improvements. The funds collected shall be deposited into the appropriate accounts and said accounts shall be separately maintained by the Operator. Upon sale or transfer of any Parcel by an Owner, the Owner's interest in such accounts shall be deemed transferred automatically to the successor Owner of such Parcel. If the Operator retains a management agent, the Operator may delegate the authority to deposit or withdraw funds to responsible representatives of such management agent. Said management agent may additionally be authorized to establish a common trustee account for deposit of assessments as collected. All funds shall be held in trust by the Operator for the use and benefit of the Owners and shall only be used for and applied to the specific purpose for each assessment as hereinafter set forth. 9.14 Books of Account. The Operator shall maintain full, complete and correct books of account of the operation of the Property. Said books and records shall accurately detail the receipts and expenditures affecting the Common Areas, specifying and itemizing the maintenance and repair expenses of the Common Areas and any other expenses incurred. The books of account shall be available for inspection by any Owner during reasonable business hours. Any Owner, or its duly authorized representative, may at any time and at its own expense cause an audit or inspection to be made of the books and records of the Operator for any period not previously audited. ARTICLE 10 MAINTENANCE, RESTORATION OF PARCELS 10.1 Duty to Maintain. The Owner of each Parcel shall repair and maintain (including replacements where necessary) the exterior of all Improvements, the landscaping, the parking areas, the drive aisles, and all internal slopes on such Owner's Parcel (other than Common Areas except for those Common Facilities which are for such Owner's sole benefit, such as a private driveway) so that the foregoing are in good, safe, sightly and well-kept condition, in a professional manner and in accordance with the approved plans and specifications for such Parcel, this Declaration, the Rules and Regulations, the Final Plans approved by the Operator

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pursuant to Article 4, and all other applicable City or other applicable governmental entity standards and regulations. 10.2 Erosion Control; Lateral Support. Each Owner shall maintain its Parcel with sufficient landscaping and plantings so as to prevent any erosion upon its Parcel which may result in damage to that Parcel or to any adjacent Parcel; provided, however, no landscaping or plantings shall occur without the Operator's prior written approval. No Owner shall perform any excavation upon its Parcel that will result in damage to any adjacent Parcel. 10.3 Damage and Destruction; Duty to Rebuild. If all or any portion of a Parcel or any Improvement on any such Parcel (other than within the Common Areas unless such Improvements within or over the Common Areas or are for the sole benefit of the particular Parcel, such as a private driveway) is damaged or destroyed by fire or other casualty, it shall be the duty of the Owner of such Parcel to: (a) rebuild, repair or reconstruct the Parcel and the Improvements thereon in a manner which will restore them to a condition and appearance approved by the Operator and the City or other applicable governmental entity; (b) raze and remove the damaged Improvements, restoring the Parcel to substantially its original unimproved condition, with such landscaping or dust abatement measures as reasonably requested by the Operator; or (c) any combination of the above, in a manner satisfactory to the Operator in Operator's sole and absolute discretion. The Owner of any Parcel on which damaged Improvements are located shall be obligated to proceed with all due diligence hereunder, and such Owner shall cause cleanup and/or reconstruction to commence within six (6) months after the damage occurs and to be completed within one (1) year after commencement of construction, unless prevented by causes beyond its reasonable control. 10.4 Insurance Obligation of Owners. Each Owner shall maintain property insurance, insuring Improvements on its Parcel (other than within the Common Areas unless such Improvements within or over the Common Areas are for the sole benefit of the particular Parcel, such as a private driveway) and personal property located therein, from and against loss or damage by fire or other casualty, under the standard form of all risk insurance policy then in use in the State of California or under such other insurance as may be required under the terms of any Mortgage encumbering its Parcel. Each Owner shall release the Operator from any liability for damage to such Owner's Property that is covered by the insurance maintained by such Owner or required to be maintained by such Owner pursuant to this Section 10.4. 10.5 Obligation to Pay Taxes, Liens. Each Owner shall pay, prior to delinquency, all real property taxes, assessments, special district charges and all other public, governmental, quasi-public or quasi-governmental charges which are or may become a lien upon the Owner's Parcel and all other liens which may be or become superior to this Declaration or any amendments thereto. If any Owner fails to timely pay any lien or charge as provided herein, the Operator shall have the right, but not the obligation, and without waiver of such default or any right or remedy, to make such payment on behalf of such Owner. Such payment and all costs and expenses, including attorneys' fees and costs, incurred by the Operator in connection with said payment shall be a Noncompliance Expense and may be recovered by the Operator as a Reimbursement Assessment against said Owner and its Parcel as provided in Section 9.8. An Owner may contest the validity or amount of any taxes, assessments or charges and, in connection therewith, may defer payment thereof or pay under protest, provided that such Owner

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21111111111111111111111111111111111131111 16,'3'1-0807)!::0R

pays all taxes (including interest and penalties) which are determined to be due as a result of said protest and protects the Property from any lien by posting an adequate surety bond. 10.6 Performance By Operator. Subject to notice in compliance with applicable California statutes and regulations, if any Owner or Lessee fails to maintain its Parcel or any Improvements thereon in the manner required by this Declaration, the Operator may notify the Owner or Lessee in writing by registered mail that said Improvement or Parcel is not being properly maintained. If such maintenance is not effected by the Owner or Lessee within sixty (60) days from the date of delivery of such notice to the Owner or Lessee, the Operator or its designee shall have the right, to the extent permitted by applicable laws, but not the obligation, and without waiver of such default or of any right or remedy, to enter upon the Parcel for the purpose of maintaining, restoring or repairing said Improvements or Parcel. Entry upon the Parcel by the Operator, or its agents or contractors for the purpose of maintenance or repair shall not be a trespass, and the Owner and all Lessees and Occupants shall be deemed to have consented thereto. The costs incurred by the Operator in restoring, maintaining or repairing said Improvement or Parcel, plus ten percent (10%) of such amount as an allowance for overhead, plus interest at the rate specified in Section 11.4 and the costs incurred by the Operator to enforce this Article 10, including attorneys' fees and court costs, shall be a Noncompliance Expense and may be recovered by the Operator as a Reimbursement Assessment against the Owner and its Parcel pursuant to Section 9.8. If the Operator elects not to perform or cause to be performed such work, the Operator may pursue any other rights and remedies set forth herein or otherwise available, including, without limitation, bringing an action at law or in equity to enforce the provisions of this Declaration. ARTICLE 11 ENFORCEMENT 11.1 Violation a Nuisance. The result of every act or omission whereby any provision of this Declaration is violated or breached in whole or in part is hereby declared to be a nuisance, and every remedy allowed by law or equity against an Owner, Lessee or Occupant for nuisance, either public or private, shall be available to and may be exercised by Declarant, the Operator, or any Owner. 11.2 General Remedies. 11.2.1 Right to Enforce. Declarant or the Operator shall have the right to enforce, by all appropriate legal and equitable proceedings, all conditions, covenants, restrictions, reservations, easements, liens, and charges now or hereafter imposed by the provisions of this Declaration. It is hereby agreed that money damages are an inadequate remedy for breach of any of the conditions, covenants, restrictions and easements contained herein, other than a default in the payment of any assessment when due. Every Owner, Lessee, Homeowner, and Occupant of a Parcel subject to these restrictions expressly waives the benefit of California Code of Civil Procedure Section 731(a), and any other comparable statute or rule, and agrees that such violation or breach may be enjoined whether or not monetary damages may be provided or payable.

1'1 4-. P.. 9 61 26€1°A 111111111111E111111111111111111011E1111111111111111 10/1
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11.2.2 Inspection: Abatement by Declarant, Operator. During reasonable hours, the Operator, or its duly authorized agents, shall have the right to enter upon and inspect any Parcel and the Improvements located thereon for the purpose of ascertaining whether or not the provisions of this Declaration have been or are being complied with, and shall not be deemed guilty of trespass by reason of such entry. The Operator shall give at least twenty-four (24) hours prior written notice of such entry (except in the case of an emergency, when no advance notice shall be required), unless the party in possession consents at the time of entry. The Operator or its duly authorized agents shall have the right, upon violation or breach of any restriction set forth herein, if such violation or breach continues for a period of thirty (30) days after written notice thereof, to enter upon the Parcel where such violation or breach exists, and summarily to take such action as may be necessary to bring such Parcel or any Improvements or activities thereon into compliance with this Declaration, at the expense of the Owner, Lessee or Occupant thereof. The Operator, or its duly authorized agents, shall have the additional right at any time and from time to time following violation or breach of this Declaration to prosecute a proceeding at law or in equity against the Person or Persons who have violated or are attempting to violate any of the provisions of this Declaration, to enjoin or prevent them from doing so, to cause said violation to be remedied, and to recover damages for said violation. 11.2.3 Owner's Remedies. After written request to the Operator to prevent any violation of this Declaration, and Operator's failure to act on such request within fifteen (15) days after receipt of such request, any Owner shall additionally have all enforcement rights provided for in this Declaration other than assessment rights. In addition, any other party to whose benefit this Declaration inures shall have the right, in the event of violation or breach of this Declaration, to prosecute a proceeding at law or in equity against the Person or Persons who have violated or are attempting to violate this Declaration, to enjoin or prevent them from doing so, to cause said violation to be remedied and to recover damages for said violation. 11.3 Collection of Assessments; Liens. 11.3.1 Right to Enforce. The right to collect and enforce all assessments provided for in this Declaration is vested in the Operator. The Operator or its authorized representative may enforce the obligations of the Owners to pay assessments provided for in this Declaration by any means allowed at law or in equity, or the Operator may perfect a lien as described in Section 11.3.2 and foreclose such lien by judicial proceedings or through the exercise of the power of sale described in Section 11.3.3. Suit to recover a money judgment for unpaid assessments may be maintained without foreclosing or waiving lien rights. 11.3.2 Creation of Lien. If there is a failure to pay any assessment within thirty (30) days after the due date, the delinquent amount, together with late charges, interest, costs, and attorney fees incurred by the Operator or its authorized representatives in the collection of said delinquent amounts, shall be a lien against the applicable Parcel upon the Recordation of a notice of delinquent assessment as provided in California Civil Code Section 1367. The notice of delinquent assessment shall set forth the amounts that are delinquent and the total amount owed, together with such other information as the Operator, in its discretion, may elect to include in such notice. The notice of delinquent assessment shall not be Recorded unless: (a) the Operator or its authorized representative has delivered to the delinquent Owner(s) at least fifteen (15) days prior to Recordation of the notice, a written notice of default and demand for payment,

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1111 1131 11111 111111 HEM 123T)31;ft&"

and (b) the delinquency has not been cured within such fifteen (15) day period. For purposes of Section 12.3, the term Parcel shall include the Improvements located thereon. 11.3.3 Notice of Default; Foreclosure. After at least fifteen (15) days after Recordation of the notice of delinquent assessment, the Operator or its authorized representative may Record a notice of default and may cause the Parcel with respect to which a notice of default has been Recorded to be sold in the same mariner as a sale is conducted under California Civil Code Sections 2924, 2924b, 2924c applicable to the exercise of powers of sale in deeds of trust, or through judicial foreclosure, or in any other manner permitted by law. The Operator is authorized to appoint its attorney, any officer or director, or any title insurance company authorized to do business in California as trustee for purposes of conducting the sale. If a delinquency is cured before sale, or before completing a judicial foreclosure, the Operator or its authorized representative shall cause to be recorded a certificate setting forth the satisfaction of such claim and release of such lien upon payment of the amount owed, including reasonable attorney's fees by the delinquent Owner. The Operator, acting on behalf of the Owners, shall have the power to bid upon the Parcel at the foreclosure sale and to acquire, hold, lease, Mortgage and convey the Parcel. 11.3.4 Subordination of the Lien to Mortgages. The lien of assessment shall be subordinate and subject only to the lien of any Mortgage, now or hereafter placed upon any Parcel, which has been made in good faith and for value and Recorded prior to the Recordation of any such assessed lien, and the sale or transfer of any Parcel pursuant to judicial or nonjudicial foreclosure of such a prior Mortgage shall extinguish the lien of such assessments as to payments which became due prior to such sale or transfer; provided, however, that the Owner shall continue to remain personally liable for such delinquent assessment. No sale or transfer shall relieve such Parcel from lien rights for any assessments thereafter becoming due nor from the lien of any subsequent assessment. Where the Mortgagee of a Mortgage or other purchaser of a Parcel obtains title to the same as a result of foreclosure, such purchaser and his successors or assigns shall not be liable for assessments chargeable to such Parcel which became due prior to the acquisition of title to such Parcel by such purchaser. 11.4 Interest. All assessments and other monetary amounts which are not paid when due hereunder shall bear interest at the maximum amount permitted by applicable law, commencing thirty (30) days after the assessment or other monetary amount becomes due. 11.5 Attorneys' Fees. In the event any legal or equitable proceeding is commenced to enforce or to restrain the violation of this Declaration or any restrictions or provision hereof, the losing party shall pay the attorneys' fees and court costs of the prevailing party in such amount as may be fixed by the arbitrator or the court in such proceedings, including, without limitation, fees and costs incurred at and in the preparation for arbitration, trial, appeal and review, as well as costs and attorneys' fees at and in preparation for litigation or other proceedings in bankruptcy court, including proceedings involving issues unique to bankruptcy law, alternate dispute resolution proceedings or mediation proceedings. 11.6 Cumulative Remedies; No Waiver. The remedies herein provided to enforce this Declaration shall be cumulative, and no such remedy is exclusive. No delay or failure by

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Declarant, the Operator or any Owner to exercise any such remedy shall, under any circumstance, constitute a waiver of the right to enforce such covenant thereafter. ARTICLE 12 TERM, TERMINATION, AMENDMENT 12.1 Term of Declaration. Subject to the provisions of Section 13.2 hereof relating to amendments, this Declaration shall run with the land and shall continue in full force and effect until 5:00 p.m. on the sixtieth (60th) anniversary of the date of Recordation of this Declaration, and shall be automatically extended for successive ten (10) year periods unless, within six (6) months prior to the expiration of the initial term or any succeeding ten-year term, a written agreement executed by the Operator and, if the Association has been formed and has assumed the role of the Operator, the Members holding not less than seventy-five percent (75%) of the voting rights is Recorded terminating this Declaration in whole or in part as to all or any portion of the Property. Upon any termination of this Declaration, the Owners of the Property at the time of such termination shall execute and record in the office of the County recorded, a document that creates and establishes reciprocal perpetual easements between and among the Parcels for access and utility purposes as necessary to ensure that each Lot within each Parcel has all such access and utility service as is reasonably necessary for the use and enjoyment thereof. 12.2 Amendments. Subject to the provisions of Section 13.15, until such time as the Association is incorporated pursuant hereto, the Operator may amend this Declaration with prior written approval of the Owners holding sixty-seven percent (67%) of the Voting Rights. From and after the date on which both of the following conditions have been met, the Association may amend this Declaration upon obtaining the written consent of the Owners then holding not less than sixty percent (60%) of the Voting Rights: (i) the Association has been formed and the role of the Operator has been assumed by the Association, and (ii) no single entity or group of affiliated entities, including without limitation Declarant, holds or has the ability to significantly influence or control more than fifty percent (50%) of the Voting Rights. Upon termination, all funds held in the Reserve Account and the Maintenance and Operation Account shall be distributed to the Owners on a pro rata basis in accordance with their Percentage Share. ARTICLE 13 GENERAL PROVISIONS 13.1 Termination and Assignment of Declarant's Rights and Duties. All of the rights, powers and reservations of Declarant set forth herein shall terminate and be of no further force or effect on the earlier to occur of (i) five (5) years after the date on which this Declaration is Recorded, or (ii) the date on which Declarant has closed on the sale of all Parcels and has approved all Final Plans in accordance with Section 4.2.3 hereof; provided, however, that, Declarant may elect, in its sole and absolute discretion, to terminate any or all of its rights, powers and/or reservations hereunder by providing written notice of such termination to the Owners if Declarant has formed the Association. Any and all of the rights, powers and reservations of Declarant set forth herein may be assigned to the Association. Notwithstanding any provision of this Declaration to the contrary, Declarant may, at any time, relieve itself of its rights and obligations under this Declaration in accordance with Section 4.1.

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13.2 Constructive Notice and Acceptance. Each Owner, Lessee and Occupant, and every other person who now or hereafter owns or acquires any right, title, estate or interest in or to any portion of the Property, by acceptance of a deed, lease or other interest therein, shall be conclusively deemed to have consented and agreed to hold such title, leasehold or interest subject to and to comply with every covenant, condition and restriction contained herein and to the rights of Declarant hereunder, whether or not any reference to this Declaration is contained in the deed, lease or other instrument by which such person acquired said interest in the Property. Every provision of this Declaration, regardless of its characterization herein, shall be deemed a covenant, condition, restriction, reservation, easement or servitude, as the circumstances may require to permit the enforcement thereof and to carry out the intent of this Declaration. Each Owner, Lessee, Occupant or guest of a Parcel shall comply with the Project Documents, and failure to so comply shall constitute a breach of this Declaration and shall subject the defaulting party to all enforcement procedures and remedies provided under the Project Documents or available at law or in equity. Each Owner shall be jointly and severally liable with its Occupants and Lessees for the acts or omissions of its Occupants and Lessees which constitute a breach under this Declaration. 13.3 Declarant's Reserved Rights. Wherever it appears in this Declaration that Declarant or the Operator has the right to waive compliance with certain provisions, the right to approve or deny certain matters or the right to exercise its discretion in various areas, these rights of Declarant or the Operator are expressly reserved or retained by Declarant or the Operator and may be exercised in Declarant's or the Operator's sole and absolute discretion unless otherwise expressly provided to the contrary herein, and all of the provisions of this Declaration are subject to such retained and reserved rights. 13.4 Exhibits. All exhibits referred to herein are attached hereto and incorporated by reference. 13.5 Governing Law. This Declaration shall be governed, construed and enforced in accordance with the laws of the State of California. 13.6 Headings. The captions and paragraph headings used in this Declaration are inserted for convenience of reference only and are not intended to define, limit or affect the interpretation or construction of any provision hereof. 13.7 Mortgage Protection: Right to Cure. No breach of this Declaration shall defeat or render invalid the lien of any Mortgage now or hereafter executed upon any part of the Property, except for the foreclosure of an assessment lien that is superior to such Mortgage pursuant to the terms of Section 11.3.4 hereof. However, if any portion of the Property is sold under a foreclosure of any Mortgage or is conveyed to the party so secured in lieu of foreclosure, any purchaser at such sale, and his successors and assigns, shall hold any and all property so acquired subject to all of the restrictions and other provisions of this Declaration. Such a purchaser shall not be obligated to cure any preexisting breach of this Declaration which is non-curable by payment of money or of a type which is not practical or feasible to cure. If a Mortgagee delivers written notice of its Mortgage to the Operator together with a request for notices of default with respect to the Parcel or Parcels encumbered by the Mortgage, the Operator shall deliver copies of all such notices of default concurrently with delivery to the Owner or Owners. After

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Mortgagee's delivery of said written notice, should any event of default under this Declaration occur, the Mortgagee of a defaulting Owner shall have sixty (60) days after receipt of notice from the Operator setting forth the nature of such event of default to cure such event of default before Operator exercises its remedies hereunder (or if the nature of the default is one which cannot be cured within said sixty (60) day period, then such additional period as may be necessary; provided Mortgagee has commenced to cure the default within said sixty (60) day period and thereafter diligently prosecutes the cure to completion) provided that: (a) Mortgagee shall have fully cured any default in the payment of any monetary obligations of the defaulting Owner within the sixty (60) day period following receipt of notice and shall continue to pay currently such monetary obligations as and when the same are due and (b) Mortgagee shall have acquired the defaulting Parcel or commenced foreclosure or other appropriate proceedings in the nature thereof within such period, or prior thereto, and is diligently prosecuting any such proceedings. All remedies of the Operator which arise as the result of the occurrence of any such event of default shall be subject to, and conditioned upon, the Operator having first given Mortgagee of defaulting Owner written notice of such event of default (provided that Mortgagee has requested in writing such notice) and the Mortgagee of the defaulting Owner having failed to remedy such default or acquire the defaulting Owner's Parcel or commence foreclosure or other appropriate proceedings in the nature thereof as set forth and within the time specified by this section. 13.8 Mutuality, Reciprocity; Runs With Land. All covenants, conditions, restrictions, reservations, easements and servitudes contained herein are made for the direct, mutual and reciprocal benefit of each and every portion of the Property; shall create mutual, equitable servitudes upon each Parcel in favor of every other Parcel; shall create reciprocal rights and obligations between the respective Owners of any portion of the Property, their heirs, successors, and assigns; and shall, as to the Owner of each Parcel, its heirs, successors and assigns, operate as covenants running with the land, for the benefit of all other Parcels. 13.9 Notices. Any notices required or permitted herein shall be in writing and either personally delivered or mailed, postage prepaid, by registered or certified mail, return receipt requested, addressed as follows: If intended for an Owner, to the last-known address of the Owner. If intended for Declarant or the Operator, to: L8 /is 6-1.)/-c LGc, env f Suivell L dofpfn4-s 305 /4,44-11 1h' be 8/ vb. Sw ie ZZ-z, //q- g 24- 5134 911e3d,ftr-r•V; / • ferhogiel Oho a- 7/i / -g7g-So..45; Mailing addresses may be changed at any time upon written notification to the Operator andlor the Owners, as applicable. Notices shall be deemed received on the date of personal delivery or three (3) business days after mailing by first class mail, return receipt requested. 13.10 Notification of Sale. Within five (5) business days after the consummation of a sale or transfer of any Parcel or portion thereof whereby the transferee becomes an Owner, the transferee shall notify the Operator of such sale in writing. Such notification shall set forth the name of the transferee and the transferor, the location of the Property, the nature of the interest transferred, the transferee's mailing address, and the date of sale. Prior to receipt of such notification, any and all communications required or permitted to be given by the Operator shall be deemed to be duly given to the transferee if duly and timely given to said transferee's transferor. In the event of a transfer of the entire Parcel, the transferee shall become the Owner once the notice provided for in this Section 1 3.1 0 is given to Operator. In the event that less than
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the entire Parcel is transferred, the notice shall also include the name and address of the subassociation or the representative who will function as the new Owner subsequent to the partial transfer of that Parcel. 13.11 Recitals. The recitals set forth above are true and correct and incorporated by this reference. 13.12 Number; Gender. As used herein, the singular shall include the plural and the masculine shall include the feminine, wherever the context so requires. 13.13 Severability. The provisions of this Declaration shall be deemed independent and severable, and if any competent court holds any provision to be invalid, partially invalid or unenforceable, such invalidity or unenforceability shall not affect or invalidate any other provision; provided, however, that to extent any such court reforms a provision, such provision, as reformed, shall be enforceable to the fullest extent permitted by law. 13.14 Waiver. Neither Declarant, the Operator, the Board, the Committee, the Association or any Member thereof, nor their successors or assigns, nor any Owner or Lessee shall be liable to any other Owner, Lessee or Occupant of any portion of the Property subject to this Declaration by reason of any mistake in judgment, negligence, nonfeasance, action or inaction in regard to the enforcement of or failure to enforce the provisions of the Declaration or any portion thereof. Every Owner, Lessee or Occupant, by acquiring its interest in the Property agrees that it will not bring any action or suit against Declarant, the Operator, or their successors and assigns or the Board, the Committee, or the Association or any Member thereof, from time to time to recover any such damages. This Section 12.14 shall not prevent the enforcement of any other legal or equitable right of one Owner against another. 13.15 Common Interest Subdivision/DRE. To the extent that the Property constitutes a "planned development" as such term is defined in California Civil Code Section 1351(k), and thus falls within the purview of the provisions of California Civil Code Sections 1350, et seq. (commonly known as the Davis-Stirling Common Interest Development Act and hereinafter referred to as the "Act"), each Owner hereby waives, to the maximum extent permitted by law, the following provisions of the Act: (1) Section 1354(b) through (j) relating to alternative dispute resolution and the filing of civil actions; (ii) Section 1355.5 relating to amendments concerning a developer's marketing rights; (iii) Section 1363.05 relating to meetings; (iv) Section 1363.1 concerning notices by a prospective managing agent; (v) Section 1363.2 concerning certain accounting requirements by the managing agent of an association; (vi) Section 1366(d) concerning notice of increase in Regular or Special Assessments; (vii) Section 1366(e)(3), but only to the extent such Section limits interest to twelve percent (12%) per annum; (viii) Section 1366.3 concerning alternative dispute resolution; (ix) Section 1368.4 pertaining to notices prior to filing of civil actions; (x) Section 1375 concerning construction defect actions; and (xi) any other provision of the Act which by its terms is inconsistent with this Declaration. To the extent a court of competent jurisdiction determines that any or all of the foregoing waivers are invalid, the invalidity of such waiver(s) shall not render this Declaration invalid, and the Operator shall amend this Declaration to the extent necessary in order to cure the effect of said invalid waiver(s) and to comply with the Act. Notwithstanding the foregoing, in the event that the Property ever includes a residential common interest development, the Operator shall comply with any

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applicable legal requirements. Declarant, Operator and all Owners acknowledge and agree that, if necessary, each shall cooperate with and promptly execute any amendment to this Declaration that may be required to accommodate any reasonable changes that may be required by the DRE as a condition to its issuance of a public report for any Lot or Improvements within the Property; provided, however, that (i) the Owner of the subject Lot or Improvements shall be required to make a good faith effort to minimize the extent and degree of any amendment to the Declaration by discussing and negotiating any changes that are required by the DRE, and (ii) Declarant shall have the right, but not the obligation, to contact the DRE and request and review related documents to verify the necessity and reasonableness of any changes required by the DRE. If, after such negotiation, the DRE still requires an amendment before it will issue a Public Report, then such amendment shall be deemed reasonable. ARTICLE 14 ANNEXATION AND DEANNEXATION 14.1 Annexation. Declarant may not add or annex any additional real property to the coverage of this Declaration. 14.2 Deannexation. Declarant may delete all or a portion of the Property from coverage of this Declaration so long as Declarant is the Owner of all of such property, and provided that (i) a Supplement is recorded in the Official Records of the County, (ii) no Association vote has been exercised with respect to any portion of such property, (iii) Assessments have not yet commenced with respect to any portion of such property, (iv) there has been no close of escrow for the sale of any Residence in such property, and (v) the Association has not made any expenditures or incurred any obligations with respect to any portion of such property. Any portion of the Property so deannexed shall no longer have any right to use any of the Common Areas or Common Facilities or any easements or other rights granted or established herein. The Owners of the remaining Parcels shall continue to have the right to use easements which may have been created applicable to the Deannexed Property. An Owner may delete all or any portion of Property from coverage of this Declaration, so long as the Owner is the Owner of all of such property and provided further that (a) all requirements of items (i) through (v) set forth above in this paragraph have been satisfied, and (b) Declarant and the other Owners have consented in writing to such deletion by executing the Supplement for such property. 14.3 Supplement. The deannexation authorized under this Article 1 shall be made by Recording a Supplement to this Declaration with respect to the deleted property which shall delete the plan of this Declaration. 14.4 Reallocation of Assessments. Following the deannexation of any real property pursuant to the terms of this Article 1, each Owner's Percentage Share shall be reallocated to give each Owner a increased portion of the Percentage Share and the Voting Rights, equal to its original percentage plus its proportionate share of the deannexed property§s assessment share and Voting Rights. By way of example only, if the deannexed property consisted of one Parcel which was allocated 20% of the Voting Rights and assessment contribution, and there were four Parcels remaining which each originally had a 20% share, the remaining Parcels' revised share, as to both assessments and Voting Rights, would each be 25%, consisting of their original 20% share plus their pro rated share of the deannexed property's share.

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creating nonprofit mutual benefit associations for those particular Parcels; provided, however, such Supplements shall be subject to the terms and provisions of this Declaration. IN WITNESS WHEREOF, Declarant has executed this Declaration of Covenants, Conditions and Restrictions and Agreement for The Hills as of the date first set forth above. LB HILLS GOLF, LLC a Delaware limited liability company By: PAMI LLC, a Delaware limited liability company, its managing member By: Property Asset Management, Inc., a Delaware coloration, its sole m By: Name: David S. Broderick Title: Authorized Signatory

4E1 111111 1111 11111 111111111 1111111111U 1111111 10/23°11-1E7trA
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New York STATE IF C_AL4P3RINITA ) ) ss COUNTY OF New York

Maribei Ruiz On this If day ofocki;op,200 3, before me, , the undersigned, a Notary Public in and for said State, personally appeared , personally known to me (or proved to me on the basis of David S. Broderick 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
MOMS. RUIZ State ol I4WN Votit Noten Publics tIo. 000E1173S 03 cwbor 2ous °omitted In CounW:Crove Commission Expires
Yk-.)rk oi FicAr York Enire5 October 8, 2008
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2003-864982
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Exhibit A-1 LEGAL DESCRIPTION OF THE PROPERTY THE LAND REFERRED TO HEREIN IS SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF RIVERSIDE, CITY OF INDIO AND IS DESCRIBED AS FOLLOWS: PARCEL 1: GOVERNMENT LOT 2 IN THE SOUTHWEST QUARTER OF SECTION 7, TOWNSHIP 5 SOUTH, RANGE 8 EAST, SAN BERNARDINO BASE AND MERIDIAN, AS SHOWN BY UNITED STATES GOVERNMENT SURVEY, APPROVED JULY 15, 1856; EXCEPTING THEREFROM PARCEL C-462-A AND PARCEL C-301-R-1, AS CONVEYED TO THE UNITED STATES OF AMERICA BY DEED RECORDED FEBRUARY 24, 1950 IN BOOK 1149 PAGE 544 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. PARCEL 2: PARCEL 2 AS SHOWN BY LOT LINE ADJUSTMENT NUMBER /6 RECORDED /0-47-c3 AS INSTRUMENT NO. c2tv3 gifivcOF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA, MORE PARTICULARLY DESCRIBED AS FOLLOWS: THOSE PORTIONS OF THE SOUTHEAST QUARTER OF SECTION 7 AND THE NORTHEAST QUARTER OF SECTION 18, TOWNSHIP 5 SOUTH, RANGE 8 EAST SAN BERNARDINO MERIDIAN IN THE CITY OF INDIO, COUNTY OF RIVERSIDE, CALIFORNIA, MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHEAST CORNER OF SAID SECTION 7; THENCE S 89°36'30" W ALONG THE SOUTH LINE OF SAID SECTION 7 A DISTANCE OF 1,182.41 FEET TO THE POINT OF BEGINNING; THENCE S 23°39'31" W A DISTANCE OF 47.73 FEET; THENCE N 66°20'29" W A DISTANCE OF 2.56 FEET; THENCE NORTHWESTERLY AND SOUTHWESTERLY ALONG A CURVE CONCAVE SOUTHERLY HAVING A RADIUS OF 60.00 FEET THROUGH AN ANGLE OF 85°06'41" AN ARC LENGTH OF 89.13 FEET; THENCE S 28°32'50" W A DISTANCE OF 121.59 FEET; THENCE SOUTHWESTERLY ALONG A CURVE CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 450.00 FEET THROUGH AN ANGLE OF 14°36'27" AN ARC LENGTH OF 114.73 FEET. (THE ENDING RADIAL BEARS N 76°03'37" W);

e

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THENCE S 56°52'20" W A DISTANCE OF 234.18 FEET; THENCE S 27°44'27" E A DISTANCE OF 62.75 FEET; THENCE SOUTHEASTERLY AND SOUTHWESTERLY ALONG A CURVE CONCAVE WESTERLY HAVING A RADIUS OF 400.50 FEET THROUGH AN ANGLE OF 40°18'34" AN ARC LENGTH OF 281.76 FEET; THENCE S 12°34'08" W A DISTANCE OF 143.70 FEET; THENCE SOUTHWESTERLY ALONG A CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 520.50 FEET THROUGH AN ANGLE OF 5°46'20" AN ARC LENGTH OF 52.44 FEET; THENCE S l8°20'28" W A DISTANCE OF 115.67 FEET; THENCE SOUTHWESTERLY ALONG A CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 420.50 FEET THROUGH AN ANGLE OF 0°35'54" AN ARC LENGTH OF 4.39 FEET; THENCE N 71°03'38" W A DISTANCE OF 41.00 FEET; THENCE NORTHEASTERLY ALONG A CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 379.50 FEET THROUGH AN ANGLE OF 0°35'54" AN ARC LENGTH OF 3.96 FEET; THENCE N 18°20'28" E A DISTANCE OF 115.67 FEET; THENCE NORTHEASTERLY ALONG A CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 479.50 FEET THROUGH AN ANGLE OF 5°46'20" AN ARC LENGTH OF 48.31 FEET; THENCE N 12°34'08" E A DISTANCE OF 143.70 FEET; THENCE NORTHEASTERLY AND NORTHWESTERLY ALONG A CURVE CONCAVE WESTERLY HAVING A RADIUS OF 359.00 FEET THROUGH AN ANGLE OF 26°08'46" AN ARC LENGTH OF 164.05 FEET. (THE ENDING RADIAL BEARS N 76°25'22" E); THENCE N 78°18'15" W A DISTANCE OF 65.06 FEET; THENCE N 01°28'46" E A DISTANCE OF 11.50 FEET; THENCE NORTHEASTERLY AND NORTHWESTERLY ALONG A CURVE CONCAVE SOUTHWESTERLY HAVING A RADIUS OF 58.67 FEET THROUGH AN ANGLE OF 67°58'58" AN ARC LENGTH OF 69.61 FEET TO THE BEGINNING OF A REVERSE CURVE; THENCE NORTHWESTERLY ALONG A CURVE CONCAVE NORTHEASTERLY HAVING A RADIUS OF 167.36 FEET THROUGH AN ANGLE OF 20°18'14" AN ARC LENGTH OF 59.31 FEET TO THE BEGINNING OF A REVERSE CURVE; THENCE NORTHWESTERLY ALONG A CURVE CONCAVE SOUTHWESTERLY HAVING A RADIUS OF 697.70 FEET THROUGH AN ANGLE OF 8°04'43" AN ARC LENGTH OF 98.37 FEET TO THE BEGINNING OF A COMPOUND CURVE; THENCE NORTHWESTERLY ALONG A CURVE CONCAVE SOUTHWESTERLY HAVING A RADIUS OF 136.08 FEET THROUGH AN ANGLE OF 26°37'19" AN ARC LENGTH OF 63.23 FEET TO THE BEGINNING OF A REVERSE CURVE; THENCE NORTHWESTERLY ALONG A CURVE CONCAVE NORTHEASTERLY HAVING A RADIUS OF 141.56 FEET THROUGH AN ANGLE OF 38°19'35" AN ARC LENGTH OF 94.69 FEET TO THE BEGINNING OF A REVERSE CURVE; THENCE NORTHWESTERLY ALONG A CURVE CONCAVE SOUTHWESTERLY HAVING A RADIUS OF 148.09 FEET THROUGH AN ANGLE OF 26°54'28" AN ARC LENGTH OF 69.55 FEET TO THE BEGINNING OF A REVERSE CURVE;
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THENCE NORTHWESTERLY ALONG A CURVE CONCAVE NORTHEASTERLY HAVING A RADIUS OF 60.22 FEET THROUGH AN ANGLE OF 48°52'22" AN ARC LENGTH OF 51.37 FEET TO THE BEGINNING OF A REVERSE CURVE; THENCE NORTHWESTERLY ALONG A CURVE CONCAVE SOUTHWESTERLY HAVING A RADIUS OF 77.43 FEET THROUGH AN ANGLE OF 48°52'22" AN ARC LENGTH OF 66.05 FEET TO THE BEGINNING OF A REVERSE CURVE; THENCE NORTHWESTERLY ALONG A CURVE CONCAVE NORTHEASTERLY HAVING A RADIUS OF 90.60 FEET THROUGH AN ANGLE OF 42°41'07" AN ARC LENGTH OF 67.50 FEET TO THE BEGINNING OF A COMPOUND CURVE; THENCE NORTHWESTERLY ALONG A CURVE CONCAVE NORTHEASTERLY HAVING A RADIUS OF 3,717.93 FEET THROUGH AN ANGLE OF 0°23'24" AN ARC LENGTH OF 25.31 FEET TO THE BEGINNING OF A REVERSE CURVE; THENCE NORTHWESTERLY ALONG A CURVE CONCAVE SOUTHWESTERLY HAVING A RADIUS OF 98.28 FEET THROUGH AN ANGLE OF 33°41'52" AN ARC LENGTH OF 57.80 FEET TO THE BEGINNING OF A REVERSE CURVE; THENCE NORTHWESTERLY ALONG A CURVE CONCAVE NORTHEASTERLY HAVING A RADIUS OF 133.56 FEET THROUGH AN ANGLE OF 30°07'04" AN ARC LENGTH OF 70.21 FEET TO THE BEGINNING OF A COMPOUND CURVE; THENCE NORTHWESTERLY AND NORTHEASTERLY ALONG A CURVE CONCAVE NORTHEASTERLY HAVING A RADIUS OF 218.25 FEET THROUGH AN ANGLE OF 32°34'04" AN ARC LENGTH OF 124.06 FEET TO THE BEGINNING OF A COMPOUND CURVE; THENCE NORTHEASTERLY ALONG A CURVE CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 1104.65 FEET THROUGH AN ANGLE OF 5°06'33" AN ARC LENGTH OF 98.50 FEET TO THE BEGINNING OF A REVERSE CURVE; THENCE NORTHEASTERLY ALONG A CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 1735.87 FEET THROUGH AN ANGLE OF 3°39'10" AN ARC LENGTH OF 110.67 FEET. THE ENDING RADIAL BEARS S 85°57'43" E; THENCE N 80°36'16" W A DISTANCE 98.81 FEET; THENCE N 33°01'28" W A DISTANCE OF 137.65 FEET; THENCE S 72°13'07" E A DISTANCE OF 15.23 FEET; THENCE SOUTHEAS lERLY AND NORTHEASTERLY ALONG A CURVE CONCAVE NORTHERLY HAVING A RADIUS OF 110.00 FEET THROUGH AN ANGLE OF 41°16'21" AN ARC LENGTH OF 79.24 FEET; THENCE N 66°30'32" E A DISTANCE OF 87.84 FEET; THENCE NORTHEASTERLY AND SOUTHEASTERLY ALONG A CURVE CONCAVE SOUTHERLY HAVING A RADIUS OF 90.00 FEET THROUGH AN ANGLE OF 43°15'23" AN ARC LENGTH OF 67.95 FEET; THENCE S 70°14'05" E A DISTANCE OF 3.46 FEET; THENCE SOUTHEASTERLY AND NORTHEASTERLY ALONG A CURVE CONCAVE NORTHERLY HAVING A RADIUS OF 85.00 FEET THROUGH AN ANGLE OF 44°48'44" AN ARC LENGTH OF 66.48 FEET; THENCE N 64°57'11" E A DISTANCE OF 4.96 FEET; THENCE NORTHEASTERLY ALONG A CURVE CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 400.00 FEET THROUGH AN ANGLE OF 14°13'26" AN ARC LENGTH OF 99.30 FEET;

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THENCE N 79°10'39" E A DISTANCE OF 0.03 FEET; -THENCE NORTHEASTERLY AND SOUTHEASTERLY ALONG A CURVE CONCAVE SOUTHERLY HAVING A RADIUS OF 175.00 FEET THROUGH AN ANGLE OF 21°21'08" AN ARC LENGTH OF 65.22 FEET; THENCE S 79'28'15" E A DISTANCE OF 33.34 FEET; THENCE SOUTHEASTERLY AND NORTHEASTERLY ALONG A CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 50.00 FEET THROUGH AN ANGLE OF 59°07'00" AN ARC LENGTH OF 51.59 FEET; THENCE N 41°24'45" E A DISTANCE OF 67.20 FEET; THENCE NORTHEASTERLY ALONG A CURVE CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 145.00 FEET THROUGH AN ANGLE OF 34°36'39" AN ARC LENGTH OF 87.59 FEET; THENCE N 76°01'24" E A DISTANCE OF 0.96 FEET; THENCE NORTHEASTERLY ALONG A CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 120.00 FEET THROUGH AN ANGLE OF 27°14'54" AN ARC LENGTH OF 57.07 FEET; THENCE N 48°46'30" E A DISTANCE OF 89.06 FEET; THENCE N 88'27'19" E A DISTANCE OF 63.12 FEET; THENCE NORTHEASTERLY ALONG A CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 70.00 FEET THROUGH AN ANGLE OF 50°43'47" AN ARC LENGTH OF 61.98 FEET; THENCE N 37°43'32" E A DISTANCE OF 74.01 FEET; THENCE N 75°20'06" E A DISTANCE OF 69.95 FEET; THENCE NORTHEASTERLY ALONG A CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 100.00 FEET THROUGH AN ANGLE OF 43°00'38" AN ARC LENGTH OF 75.07 FEET; THENCE N 32°19'28" E A DISTANCE OF 2.89 FEET; THENCE NORTHEASTERLY ALONG A CURVE CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 800.00 FEET THROUGH AN ANGLE OF 14°49'48" A DISTANCE OF 207.07 FEET. (THE ENDING RADIAL BEARS N 42°50'44" W); THENCE N 00°13'01" E A DISTANCE OF 77.71 FEET; THENCE S 67°43'58" E A DISTANCE OF 523.77 FEET; THENCE S 36°29'25" W A DISTANCE OF 788.92 FEET; THENCE S 19°33'51" W A DISTANCE OF 5.00 FEET; THENCE SOUTHWESTERLY AND SOUTHEASTERLY ALONG A CURVE CONCAVE EASTERLY HAVING A RADIUS OF 390.00 FEET THROUGH AN ANGLE OF 30°43'31" AN ARC LENGTH OF 209.14 FEET. (THE ENDING RADIAL BEARS S 78°50'20" W); THENCE S 23°39'31" W A DISTANCE OF 16.66 FEET TO THE POINT OF BEGINNING. PARCEL 3: PARCEL 3 AS SHOWN BY LOT LINE ADJUSTMENT NUMBER /" g&' RECORDED a."-/ 7-0 3 AS INSTRUMENT NO. .9‘4.6 - S1 914o OF OFFICIAL

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RECORDS OF RIVERSIDE COUNTY, CALIFORNIA, MORE PARTICULARLY DESCRIBED AS FOLLOWS: THOSE PORTIONS OF THE NORTHWEST QUARTER OF SECTION 17, THE NORTHEAST QUARTER OF SECTION 18 AND THE SOUTHEAST QUARTER OF SECTION 7, TOWNSHIP 5 SOUTH, RANGE 8 EAST SAN BERNARDINO MERIDIAN IN THE CITY OF INDIO, COUNTY OF RIVERSIDE, CALIFORNIA, MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHWEST QUARTER OF SAID SECTION 17; THENCE N 892 53' 19" E ALONG THE NORTH LINE OF SAID SECTION 17 A DISTANCE OF 184.84 FEET; THENCE S 332 25' 33" E A DISTANCE OF 48.46 FEET; THENCE S 244 53' 21" E A DISTANCE OF 155.35 FEET; THENCE S 2P 09' 29" E A DISTANCE OF 122.75 FEET; THENCE S 112 18' 08" W A DISTANCE OF 9.98 FEET TO THE BEGINNING OF A NONTANGENT CURVE; THENCE SOUTHWESTERLY AND NORTHWESTERLY ALONG A CURVE CONCAVE NORTHERLY HAVING A RADIUS OF 200.00 FEET THROUGH A CENTRAL ANGLE OF 254 14' 34" AN ARC LENGTH OF 88.11 FEET. (THE BEGINNING RADIAL BEARS S 044 25' 47" E); THENCE N 692 11' 13" W A DISTANCE OF 31.57 FEET; THENCE NORTHWESTERLY AND SOUTHWESTERLY ALONG A CURVE CONCAVE SOUTHERLY HAVING A RADIUS OF 125.00 FEET THROUGH A CENTRAL ANGLE OF 432 29' 47" AN ARC LENGTH OF 94.89 FEET; THENCE S 674 19' 00" W A DISTANCE OF 12.40 FEET; THENCE SOUTHWESTERLY ALONG A CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 600.00 FEET THROUGH A CENTRAL ANGLE OF 112 38' 51" AN ARC LENGTH OF 121.97 FEET; THENCE S 782 57' 51" W A DISTANCE OF 17.16 FEET; THENCE SOUTHWESTERLY ALONG A CURVE CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 100.00 FEET THROUGH A CENTRAL ANGLE OF 92 45' 49" AN ARC LENGTH OF 17.04 FEET; THENCE S 694 12' 02" W A DISTANCE OF 60.68 FEET; THENCE SOUTHWESTERLY ALONG A CURVE CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 300.00 FEET THROUGH A CENTRAL ANGLE OF 154 25' 21" AN ARC LENGTH OF 80.75 FEET; THENCE S 532 46' 41" W A DISTANCE OF 9.73 FEET; THENCE SOUTHWESTERLY ALONG A CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 200.00 FEET THROUGH A CENTRAL ANGLE OF 212 30' 19" AN ARC LENGTH OF 75.07 FEET; THENCE S 752 17' 00" W A DISTANCE OF 11.70 FEET; THENCE SOUTHWESTERLY ALONG A CURVE CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 500.00 FEET THROUGH A CENTRAL ANGLE OF 72 44' 52" AN ARC LENGTH OF 67.61 FEET; THENCE S 674 32' 08" W A DISTANCE OF 61.04 FEET;

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THENCE N 842 05' 36" W A DISTANCE OF 97.01 FEET TO THE BEGINNING OF A NONTANGENT CURVE; THENCE SOUTHWESTERLY ALONG A CURVE CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 629.50 FEET THROUGH A CENTRAL ANGLE OF 44 53' 24" AN ARC LENGTH OF 53.73 FEET (THE BEGINNING RADIAL BEARS N 654 30' 26"W); THENCE S 19Q 36' 10" W A DISTANCE OF 198.88 FEET; THENCE SOUTHWESTERLY ALONG A CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 325.00 FEET THROUGH A CENTRAL ANGLE OF 284 26' 53" AN ARC LENGTH OF 161.37 FEET; THENCE S 48Q 03' 03" W A DISTANCE OF 210.22 FEET; THENCE SOUTHWESTERLY ALONG A CURVE CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 379.50 FEET THROUGH A CENTRAL ANGLE OF 234 22' 40" AN ARC LENGTH OF 154.84 FEET; THENCE S 240 40' 23" W A DISTANCE OF 240.30 FEET; THENCE N 654 19' 37" W A DISTANCE OF 41.00 FEET; THENCE N 242 40' 23" E A DISTANCE OF 240.30 FEET; THENCE NORTHEASTERLY ALONG A CURVE CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 420.50 FEET THROUGH A CENTRAL ANGLE OF 23Q 22' 40" AN ARC LENGTH OF 171.57 FEET; THENCE N 48' 03' 03" E A DISTANCE OF 210.22 FEET; THENCE NORTHEASTERLY ALONG A CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 284.00 THROUGH A CENTRAL ANGLE OF 282 26' 53" AN ARC LENGTH OF 141.01 FEET; THENCE N 190 36' 10" E A DISTANCE OF 198.88 FEET; THENCE NORTHEASTERLY ALONG A CURVE CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 670.50 FEET THROUGH A CENTRAL ANGLE OF 40 36' 43" AN ARC LENGTH OF 53.97 FEET (THE ENDING RADIAL BEARS N 652 47' 08" W); THENCE N 702 43' 36" W A DISTANCE OF 122.08 FEET; THENCE N 170 45' 36" W A DISTANCE OF 53.40 FEET TO THE BEGINNING OF A NONTANGENT CURVE; THENCE NORTHEASTERLY ALONG A CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 395.00 FEET THROUGH A CENTRAL ANGLE OF 432 31' 32" AN ARC LENGTH OF 300.07 FEET. (THE BEGINNING RADIAL BEARS S 344 09' 50" E); THENCE W 124 18' 38" E A DISTANCE OF 153.72 FEET; THENCE NORTHEASTERLY AND NORTHWESTERLY ALONG A CURVE CONCAVE WESTERLY HAVING A RADIUS OF 1,070.00 FEET THROUGH A CENTRAL ANGLE OF 260 49' 21" AN ARC LENGTH OF 500.91 FEET. (THE ENDING RADIAL BEARS N 752 29' 17" E); THENCE S 862 35' 16" W A DISTANCE OF 150.84 FEET; THENCE N 50 44' 17" E A DISTANCE OF 292.64 FEET; THENCE S 670 43' 58" E A DISTANCE OF 400.79 FEET; THENCE SOUTHEASTERLY ALONG A CURVE CONCAVE SOUTHWESTERLY HAVING A RADIUS OF 829.93 FEET THROUGH A CENTRAL ANGLE OF 170 17' 28" AN ARC LENGTH OF 250.46 FEET TO THE EAST LINE OF SAID SECTION 7. (THE ENDING RADIAL BEARS N 394 33' 30" E);

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THENCE S 002 04' 28" E ALONG THE EAST LINE OF SAID SECTION 7 A DISTANCE OF 529.57 FEET TO THE NORTHWEST CORNER OF SAID SECTION 17 AND THE POINT OF BEGINNING. PARCEL 4: THAT PORTION OF THE NORTH ONE-HALF OF THE NORTHWEST ONE-QUARTER OF SECTION 18, TOWNSHIP 5 SOUTH, RANGE 8 EAST, SAN BERNARDINO BASE AND MERIDIAN, LYING NORTHEASTERLY OF THE ALL AMERICAN CANAL RIGHT-OFWAY, 300 FEET WIDE, SHOWN AS PAR. C-6A-408 ON THE U.S. GOVERNMENT LAND MAP DATED MAY 3, 1946, SAID RIGHT-OF-WAY IS ALSO REFERRED TO IN THAT CERTAIN DEED RECORDED JULY 22, 1949, IN BOOK 1096 PAGE 103 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. PARCEL 5: THE NORTH ONE-HALF OF GOVERNMENT LOT 2 IN THE NORTHWEST ONEQUARTER OF SECTION 18 ACCORDING TO THE OFFICIAL PLAT THEREOF FOR TOWNSHIP 5 SOUTH, RANGE 8 EAST, SAN BERNARDINO BASE AND MERIDIAN, IN THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA; EXCEPTING THEREFROM THE SOUTHERLY 100.00 FEET THEREOF; ALSO EXCEPTING THEREFROM THAT PORTION LYING NORTHEASTERLY OF THE SOUTHWESTERLY LINE OF THE ALL AMERICAN CANAL RIGHT-OF-WAY, 300.00 FEET WIDE, SHOWN AS PAR. C-6A-408 ON U.S. GOVERNMENT LAND MAP DATED MAY 3, 1946, SAID RIGHT-OF-WAY IS ALSO REFERRED TO IN THAT CERTAIN DEED RECORDED JULY 22, 1949 IN BOOK 1096 PAGE 103 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA; ALSO EXCEPTING THEREFROM THE WESTERLY 30 FEET THEREOF. PARCEL #6: THE NORTH ONE-HALF OF THE NORTHWEST ONE-QUARTER OF SECTION 18 ACCORDING TO THE OFFICIAL PLAT THEREOF FOR TOWNSHIP 5 SOUTH, RANGE 8 EAST, SAN BERNARDINO BASE AND MERIDIAN, IN THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA; EXCEPTING THEREFROM THAT PORTION OF THE NORTH ONE-HALF OF GOVERNMENT LOT 2 IN SAID NORTHWEST ONE-QUARTER OF SECTION 18 LYING NORTHERLY OF THE SOUTHERLY 100.00 FEET THEREOF; ALSO EXCEPTING THEREFROM THE WESTERLY 30.00 FEET THEREOF;

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ALSO EXCEPTING THEREFROM THAT PORTION THEREOF LYING NORTHEASTERLY OF THE SOUTHWESTERLY BOUNDARY LINE OF THE ALL AMERICAN CANAL RIGHT-OF-WAY 300.00 FEET WIDE SHOWN AS PAR. C-6A-408 ON U.S. GOVERNMENT LAND MAP DATED MAY 3, 1946; SAID RIGHT-OF-WAY IS ALSO REFERRED TO IN THAT CERTAIN DEED RECORDED JULY 22, 1949 IN BOOK 1096 PAGE 103 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA; ALSO EXCEPTING THEREFROM THAT PORTION THEREOF LYING WITHIN THAT CERTAIN PARCEL OF LAND DESCRIBED AS FOLLOWS: COMMENDING AT THE NORTHEAST CORNER OF THE SOUTH ONE-HALF OF SAID NORTHWEST ONE-QUARTER OF SECTION 18; THENCE WESTERLY 550.00 FEET ALONG THE NORTHERLY BOUNDARY OF THE SOUTH ONE-HALF OF THE NORTHWEST ONE-QUARTER OF SECTION 18 TO THE TRUE POINT OF BEGINNING; THENCE SOUTHEASTERLY ON A LINE PARALLEL WITH THE SOUTHWESTERLY BOUNDARY OF THE ALL AMERICAN CANAL RIGHT-OF-WAY, 300.00 FEET WIDE, SHOWN AS PARCEL C-6A-408 ON U.S. GOVERNMENT LAND MAP DATED MAY 3, 1946. SAID RIGHT-OF-WAY IS ALSO REFERRED TO IN THAT CERTAIN DEED RECORDED JULY 22, 1946 IN BOOK 1096 PAGE 103 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA, TO THE EASTERLY BOUNDARY OF SAID NORTHWEST ONE-QUARTER OF SECTION 18; THENCE NORTHERLY ALONG SAID EASTERLY BOUNDARY TO THE SOUTHWESTERLY LINE OF SAID ALL AMERICAN CANAL RIGHT-OF-WAY, 300.00 FEET WIDE; THENCE NORTHWESTERLY ALONG SAID SOUTHWESTERLY RIGHT-OF-WAY LINE TO A LINE THAT PASSES THROUGH THE TRUE POINT OF BEGINNING AND IS PARALLEL WITH SAID EASTERLY BOUNDARY OF THE NORTHWEST ONEQUARTER OF SECTION 18; THENCE SOUTHERLY ALONG LAST SAID PARALLEL LINE TO THE TRUE POINT OF BEGINNING. PARCEL 7: THAT PORTION OF THE NORTHEAST QUARTER OF SECTION 18, TOWNSHIP 5 SOUTH, RANGE 8 EAST, SAN BERNARDINO BASE AND MERIDIAN, LYING SOUTHERLY AND WESTERLY OF THE ALL AMERICAN CANAL RIGHT-OF-WAY, 300 FEET WIDE, AS REFERRED TO AND DESCRIBED IN THAT CERTAIN DEED FILED FOR RECORD JULY 22, 1949 IN BOOK 1096 PAGE 103 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA; EXCEPTING THEREFROM THAT PORTION CONVEYED TO MILDRED SOUTHERLAND, AN UNMARRIED WOMAN, BY DEED RECORDED JULY 22, 1949 IN BOOK 1096 PAGE 103 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA.
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PARCEL 8: A PORTION OF THE SOUTH HALF OF THE SOUTHEAST QUARTER OF THE NORTHEAST QUARTER OF SECTION 18, TOWNSHIP 5 SOUTH, RANGE 8 EAST, SAN BERNARDINO BASE AND MERIDIAN, AS SHOWN BY UNITED STATES GOVERNMENT SURVEY, MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWEST CORNER OF THE SOUTHEAST QUARTER OF THE NORTHEAST QUARTER OF SAID SECTION 18; THENCE (1ST COURSE) EAST ALONG THE SOUTH LINE OF THE NORTHEAST QUARTER OF SAID SECTION 18 TO ITS INTERSECTION WITH THE SOUTHWESTERLY LINE OF THE ALL AMERICAN CANAL RIGHT-OF-WAY AS NOW LOCATED; THENCE (2ND COURSE) NORTHWESTERLY ALONG THE SOUTHWESTERLY LINE OF THE ALL AMERICAN CANAL RIGHT-OF-WAY, 700 FEET, MORE OR LESS, TO THE INTERSECTION OF THE SOUTHWESTERLY LINE OF THE ALL AMERICAN CANAL RIGHT-OF-WAY AND A LINE, DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWEST CORNER OF THE SOUTHEAST QUARTER OF THE NORTHEAST QUARTER OF SAID SECTION 18; THENCE NORTHEASTERLY IN A DIRECT LINE AND ENDING AT THE NORTHEAST CORNER OF THE SOUTHEAST QUARTER OF THE NORTHEAST QUARTER OF SAID SECTION 18; THENCE (3RD COURSE) SOUTHWESTERLY IN A DIRECT LINE TO THE POINT OF BEGINNING. PARCEL 9: A PORTION OF THE SOUTHEAST QUARTER OF THE SOUTHWEST QUARTER OF THE NORTHEAST QUARTER AND A PORTION OF THE SOUTHWEST QUARTER OF THE SOUTHEAST QUARTER OF THE NORTHEAST QUARTER OF SECTION 18, TOWNSHIP 5 SOUTH, RANGE 8 EAST, SAN BERNARDINO BASE AND MERIDIAN, AS SHOWN BY UNITED STATES GOVERNMENT SURVEY, MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING A THE SOUTHEAST CORNER OF THE SOUTHWEST QUARTER OF THE NORTHEAST QUARTER OF SAID SECTION 18; THENCE (1ST COURSE) WEST ALONG THE SOUTH LINE OF THE NORTHEAST QUARTER OF SECTION 18, A DISTANCE OF 45 FEET; THENCE (2ND COURSE) NORTH AND PARALLEL WITH THE EAST LINE OF THE SOUTHWEST QUARTER OF THE NORTHEAST QUARTER OF SAID SECTION 18, 5 FEET; THENCE (3RD COURSE) EAST AND PARALLEL WITH THE SOUTH LINE OF THE NORTHEAST QUARTER OF SAID SECTION 18 TO A POINT OF INTERSECTION WITH A LINE DESCRIBED AS FOLLOWS:

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BEGINNING AT THE SOUTHWEST CORNER OF THE SOUTHEAST QUARTER OF THE NORTHEAST QUARTER OF SAID SECTION 18; THENCE NORTHEASTERLY IN A DIRECT LINE AND ENDING AT THE NORTHEAST CORNER OF THE SOUTHEAST QUARTER OF THE NORTHEAST QUARTER OF SAID SECTION 18; THENCE (4TH COURSE) SOUTHWESTERLY IN A DIRECT LINE TO THE TRUE POINT OF BEGINNING.

PARCEL 10:
ALL THAT PORTION OF THE NORTHWEST QUARTER OF SECTION 17, TOWNSHIP 5 SOUTH, RANGE 8 EAST, SAN BERNARDINO BASE AND MERIDIAN, LYING WESTERLY OF THAT CERTAIN PARCEL OF LAND AS CONVEYED TO THE COACHELLA VALLEY WATER DISTRICT BY DEED RECORDED ON NOVEMBER 1, 1948 IN BOOK 1023 PAGE 329 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA.

PARCEL 11:
PARCEL 1 AS SHOWN BY LOT LINE ADJUSTMENT NUMBER I - 9g RECORDED /0-/7-03 AS INSTRUMENT NO. a/2°3 - 81'1/4., OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA, MORE PARTICULARLY DESCRIBED AS FOLLOWS: THOSE PORTIONS OF THE SOUTHEAST QUARTER OF SECTION 7, THE NORTHWEST QUARTER OF SECTION 17 AND THE NORTHEAST QUARTER OF SECTION 18, TOWNSHIP 5 SOUTH, RANGE 8 EAST SAN BERNARDINO MERIDIAN IN THE CITY OF INDIO, COUNTY OF RIVERSIDE, CALIFORNIA, MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHWEST CORNER OF SAID SECTION 17; THENCE N 89g 53' 19" E ALONG THE NORTH LINE OF SAID SECTION 17 A DISTANCE OF 335.04 FEET; THENCE S 25g 09' 28" W A DISTANCE OF 909.20 FEET; THENCE SOUTHEASTERLY ALONG A CURVE CONCAVE NORTHEASTERLY HAVING A RADIUS OF 1557.40 THROUGH A CENTRAL ANGLE OF 82 47' 30" AN ARC LENGTH OF 238.97 FEET; THENCE S 33g 56' 58" E A DISTANCE OF 918.89 FEET; THENCE SOUTHEASTERLY ALONG A CURVE CONCAVE NORTHEASTERLY HAVING A RADIUS OF 1557.40 FEET THROUGH A CENTRAL ANGLE OF 21g 12' 30" AN ARC LENGTH OF 576.48 FEET; THENCE S 55g 09' 28" E A DISTANCE OF 373.61 FEET; THENCE S 33g 57' 26" W A DISTANCE OF 259.22 FEET TO THE SOUTHERLY LINE OF THE NORTHWEST QUARTER OF SAID SECTION 17; THENCE N 89g 59' 19" W ALONG SAID SOUTH LINE A DISTANCE OF 1920.06 FEET TO THE SOUTHEAST CORNER OF THE NORTHEAST QUARTER OF SAID SECTION 18; 11111111111111111 1111 IIIII1111 A-10 67;92 ,3°°A ° ''3171

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THENCE S 892 37' 11" W ALONG THE SOUTH LINE OF THE NORTHEAST QUARTER OF SAID SECTION 18 A DISTANCE OF 71.73 FEET TO THE EASTERLY RIGHT OF WAY LINE OF THE ALL AMERICAN CANAL RIGHT OF WAY, 300.00 FEET WIDE, AS SAID RIGHT OF WAY IS REFERRED TO IN THAT CERTAIN DEED RECORDED JULY 22, 1949 IN BOOK 1096, PAGES 103 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA; THENCE NORTHWESTERLY ALONG A CURVE CONCAVE NORTHEASTERLY HAVING A RADIUS OF 1,232.40 FEET THROUGH A CENTRAL ANGLE OF 52 49' 25" AN ARC LENGTH OF 125.26 FEET. (THE BEGINNING RADIAL BEARS S 582 50' 58" W); THENCE N 252 19' 37" W A DISTANCE OF 599.50 FEET; THENCE NORTHWESTERLY ALONG A CURVE CONCAVE SOUTHWESTERLY HAVING A RADIUS OF 1,155.37 FEET THROUGH A CENTRAL ANGLE OF 402 00' 00" AN ARC LENGTH OF 806.60 FEET; THENCE N 652 19' 37" W A DISTANCE OF 747.82 FEET; THENCE NORTHWESTERLY AND SOUTHWESTERLY ALONG A CURVE CONCAVE SOUTHWESTERLY HAVING A RADIUS OF 773.69 FEET THROUGH A CENTRAL ANGLE OF 282 18' 08" AN ARC LENGTH OF 382.18 FEET; THENCE S 862 22' 15" W A DISTANCE OF 282.42 FEET; THENCE SOUTHWESTERLY AND NORTHWESTERLY ALONG A CURVE CONCAVE NORTHEASTERLY HAVING A RADIUS OF 373.69 FEET THROUGH A CENTRAL ANGLE OF 362 18' 40" AN ARC LENGTH OF 236.83 FEET; THENCE N 572 19' 05" W A DISTANCE OF 187.55 FEET TO THE WEST LINE OF THE NORTHEAST QUARTER OF SAID SECTION 18; THE PREVIOUS EIGHT COURSES BEING ALONG THE EASTERLY AND NORTHERLY RIGHT OF WAY LINE OF SAID ALL AMERICAN CANAL RIGHT OF WAY; THENCE N 002 21' 43" E ALONG THE WEST LINE OF THE NORTHEAST QUARTER OF SAID SECTION 18 A DISTANCE OF 880.16 FEET TO THE NORTHWEST CORNER OF THE NORTHEAST QUARTER OF SAID SECTION 18 ALSO BEING THE SOUTHWEST CORNER OF THE SOUTHEAST QUARTER OF SAID SECTION 7; THENCE N 002 00' 25" E ALONG THE WEST LINE OF THE SOUTHEAST QUARTER OF SAID SECTION 17 A DISTANCE OF 1,104.67 FEET; THENCE N 882 00' 32" E A DISTANCE OF 1,114.92 FEET; THENCE NORTHEASTERLY AND SOUTHEASTERLY ALONG A CURVE CONCAVE SOUTHERLY HAVING A RADIUS OF 829.93 FEET THROUGH A CENTRAL ANGLE OF 242 15' 30" AN ARC LENGTH OF 351.38 FEET; THENCE S 672 43' 58" E A DISTANCE OF 1,071.60 FEET; THENCE SOUTHEASTERLY ALONG A CURVE CONCAVE SOUTHWESTERLY HAVING A RADIUS OF 829.93 FEET THROUGH A CENTRAL ANGLE OF 172 17' 28" AN ARC LENGTH OF 250.46 FEET TO THE EAST LINE OF SAID SECTION 7. (THE ENDING RADIAL BEARS N 392 33' 30" E); THENCE S 002 04' 28" E ALONG THE EAST LINE OF SAID SECTION 7 A DISTANCE OF 529.57 FEET TO THE POINT OF BEGINNING. EXCEPTING THEREFROM THOSE PORTIONS OF THE SOUTHEAST QUARTER OF SECTION 7 AND THE NORTHEAST QUARTER OF SECTION 18, TOWNSHIP 5 SOUTH,

1111111111 11111111111100 1111111111111111111111 40596965.14

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RANGE 8 EAST SAN BERNARDINO MERIDIAN IN THE CITY OF INDIO, COUNTY OF RIVERSIDE, CALIFORNIA, MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHEAST CORNER OF SAID SECTION 7; THENCE S 892 36' 30" W ALONG THE SOUTH LINE OF SAID SECTION 7 A DISTANCE OF 1,182.41 FEET TO THE POINT OF BEGINNING; THENCE S 232 39' 31" W A DISTANCE OF 47.73 FEET; THENCE N 662 20' 29" W A DISTANCE OF 2.56 FEET; THENCE NORTHWESTERLY AND SOUTHWESTERLY ALONG A CURVE CONCAVE SOUTHERLY HAVING A RADIUS OF 60.00 FEET THROUGH AN ANGLE OF 852 06' 41" AN ARC LENGTH OF 89.13 FEET; THENCE S 282 32' 50" W A DISTANCE OF 121.59 FEET; THENCE SOUTHWESTERLY ALONG A CURVE CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 450.00 FEET THROUGH AN ANGLE OF 142 36' 27" AN ARC LENGTH OF 114.73 FEET. (THE ENDING RADIAL BEARS N 762 03' 37" W); THENCE S 562 52' 20" W A DISTANCE OF 234.18 FEET; THENCE S 272 44' 27" E A DISTANCE OF 62.75 FEET; THENCE SOUTHEASTERLY AND SOUTHWESTERLY ALONG A CURVE CONCAVE WESTERLY HAVING A RADIUS OF 400.50 FEET THROUGH AN ANGLE OF 402 18' 34" AN ARC LENGTH OF 281.76 FEET; THENCE S 122 34' 08" W A DISTANCE OF 143.70 FEET; THENCE SOUTHWESTERLY ALONG A CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 520.50 FEET THROUGH AN ANGLE OF 52 46' 20" AN ARC LENGTH OF 52.44 FEET; THENCE S 182 20' 28" W A DISTANCE OF 115.67 FEET; THENCE SOUTHWESTERLY ALONG A CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 420.50 FEET THROUGH AN ANGLE OF 02 35' 54" AN ARC LENGTH OF 4.39 FEET; THENCE N 712 03' 38" W A DISTANCE OF 41.00 FEET; THENCE NORTHEASTERLY ALONG A CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 379.50 FEET THROUGH AN ANGLE OF 02 35' 54" AN ARC LENGTH OF 3.96 FEET; THENCE N 182 20' 28" E A DISTANCE OF 115.67 FEET; THENCE NORTHEASTERLY ALONG A CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 479.50 FEET THROUGH AN ANGLE OF 52 46' 20" AN ARC LENGTH OF 48.31 FEET; THENCE N 122 34' 08" E A DISTANCE OF 143.70 FEET; THENCE NORTHEASTERLY AND NORTHWESTERLY ALONG A CURVE CONCAVE WESTERLY HAVING A RADIUS OF 359.50 FEET THROUGH AN ANGLE OF 262 08' 46" AN ARC LENGTH OF 164.05 FEET. (THE ENDING RADIAL BEARS N 762 25' 22" E); THENCE N 782 18' 15" W A DISTANCE OF 65.06 FEET; THENCE N 012 28' 46" E A DISTANCE OF 11.50 FEET; THENCE NORTHEASTERLY AND NORTHWESTERLY ALONG A CURVE CONCAVE SOUTHWESTERLY HAVING A RADIUS OF 58.67 FEET THROUGH AN ANGLE OF 672 58' 58" AN ARC LENGTH OF 69.61 FEET TO THE BEGINNING OF A REVERSE CURVE; 4 -A 11111111111111111111111111111111111111 111111 leY31
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THENCE NORTHWESTERLY ALONG A CURVE CONCAVE NORTHEASTERLY HAVING A RADIUS OF 167.36 FEET THROUGH AN ANGLE OF 204 18' 14" AN ARC LENGTH OF 59.31 FEET TO THE BEGINNING OF A REVERSE CURVE; THENCE NORTHWESTERLY ALONG A CURVE CONCAVE SOUTHWESTERLY HAVING A RADIUS OF 697.70 FEET THROUGH AN ANGLE OF 82 04' 43" AN ARC LENGTH OF 98.37 FEET TO THE BEGINNING OF A COMPOUND CURVE; THENCE NORTHWESTERLY ALONG A CURVE CONCAVE SOUTHWESTERLY HAVING A RADIUS OF 136.08 FEET THROUGH AN ANGLE OF 264 37' 19" AN ARC LENGTH OF 63.23 FEET TO THE BEGINNING OF A REVERSE CURVE; THENCE NORTHWESTERLY ALONG A CURVE CONCAVE NORTHEASTERLY HAVING A RADIUS OF 141.56 FEET THROUGH AN ANGLE OF 384 19' 35" AN ARC LENGTH OF 94.69 FEET TO THE BEGINNING OF A REVERSE CURVE; THENCE NORTHWESTERLY ALONG A CURVE CONCAVE SOUTHWESTERLY HAVING A RADIUS OF 148.09 FEET THROUGH AN ANGLE OF 264 54' 28" AN ARC LENGTH OF 69.55 FEET TO THE BEGINNING OF A REVERSE CURVE; THENCE NORTHWESTERLY ALONG A CURVE CONCAVE NORTHEASTERLY HAVING A RADIUS OF 60.22 FEET THROUGH AN ANGLE OF 484 52' 22" AN ARC LENGTH OF 51.37 FEET TO THE BEGINNING OF A REVERSE CURVE; THENCE NORTHWESTERLY ALONG A CURVE CONCAVE SOUTHWESTERLY HAVING A RADIUS OF 77.43 FEET THROUGH AN ANGLE OF 484 52' 22" AN ARC LENGTH OF 66.05 FEET TO THE BEGINNING OF A REVERSE CURVE; THENCE NORTHWESTERLY ALONG A CURVE CONCAVE NORTHEASTERLY HAVING A RADIUS OF 90.60 FEET THROUGH AN ANGLE OF 422 41' 07" AN ARC LENGTH OF 67.50 FEET TO THE BEGINNING OF A COMPOUND CURVE; THENCE NORTHWESTERLY ALONG A CURVE CONCAVE NORTHEASTERLY HAVING A RADIUS OF 3,717.93 FEET THROUGH AN ANGLE OF Og 23' 24" AN ARC LENGTH OF 25.31 FEET TO THE BEGINNING OF A REVERSE CURVE; THENCE NORTHWESTERLY ALONG A CURVE CONCAVE SOUTHWESTERLY HAVING A RADIUS OF 98.28 FEET THROUGH AN ANGLE OF 332 41' 52" AN ARC LENGTH OF 57.80 FEET TO THE BEGINNING OF A REVERSE CURVE; THENCE NORTHWESTERLY ALONG A CURVE CONCAVE NORTHEASTERLY HAVING A RADIUS OF 133.56 FEET THROUGH AN ANGLE OF 302 07' 04" AN ARC LENGTH OF 70.21 FEET TO THE BEGINNING OF A COMPOUND CURVE; THENCE NORTHWESTERLY AND NORTHEASTERLY ALONG A CURVE CONCAVE NORTHEASTERLY HAVING A RADIUS OF 218.25 FEET THROUGH AN ANGLE OF 322 34' 04" AN ARC LENGTH OF 124.06 FEET TO THE BEGINNING OF A COMPOUND CURVE; THENCE NORTHEASTERLY ALONG A CURVE CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 1104.65 FEET THROUGH AN ANGLE OF 52 06' 33" AN ARC LENGTH OF 98.50 FEET TO THE BEGINNING OF A REVERSE CURVE; THENCE NORTHEASTERLY ALONG A CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 1735.87 FEET THROUGH AN ANGLE OF 32 39' 10" AN ARC LENGTH OF 110.67 FEET. THE ENDING RADIAL BEARS S 854 57' 43" E; THENCE N 802 36' 16" W A DISTANCE OF 98.81 FEET; THENCE N 332 01' 28" W A DISTANCE OF 137.65 FEET; THENCE S 722 13' 07" E A DISTANCE OF 15.23 FEET;

2 111111111111111011111111111111111111i111111111111111 1011-A,1:96A
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THENCE SOUTHEASTERLY AND NORTHEASTERLY ALONG A CURVE CONCAVE NORTHERLY HAVING A RADIUS OF 110.00 FEET THROUGH AN ANGLE OF 412 16' 21" AN ARC LENGTH OF 79.24 FEET; THENCE N 662 30' 32" E A DISTANCE OF 87.84 FEET; THENCE NORTHEASTERLY AND SOUTHEASTERLY ALONG A CURVE CONCAVE SOUTHERLY HAVING A RADIUS OF 90.00 FEET THROUGH AN ANGLE OF 432 15' 23" AN ARC LENGTH OF 67.95 FEET; THENCE S 702 14' 05" E A DISTANCE OF 3.46 FEET; THENCE SOUTHEASTERLY AND NORTHEASTERLY ALONG A CURVE CONCAVE NORTHERLY HAVING A RADIUS OF 85.00 FEET THROUGH AN ANGLE OF 442 48' 44" AN ARC LENGTH OF 66.48 FEET; THENCE N 642 57' 11" E A DISTANCE OF 4.96 FEET; THENCE NORTHEASTERLY ALONG A CURVE CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 400.00 FEET THROUGH AN ANGLE OF 142 13' 26" AN ARC LENGTH OF 99.30 FEET; THENCE N 792 10' 39" E A DISTANCE OF 0.03 FEET; THENCE NORTHEASTERLY AND SOUTHEASTERLY ALONG A CURVE CONCAVE SOUTHERLY HAVING A RADIUS OF 175.00 FEET THROUGH AN ANGLE OF 212 21' 08" AN ARC LENGTH OF 65.22 FEET; THENCE S 792 28' 15" E A DISTANCE OF 33.34 FEET; THENCE SOUTHEASTERLY AND NORTHEASTERLY ALONG A CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 50.00 FEET THROUGH AN ANGLE OF 592 07' 00" AN ARC LENGTH OF 51.59 FEET; THENCE N 412 24' 45" E A DISTANCE OF 67.20 FEET; THENCE NORTHEASTERLY ALONG A CURVE CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 145.00 FEET THROUGH AN ANGLE OF 342 36' 39" AN ARC LENGTH OF 87.59 FEET; THENCE N 762 01' 24" E A DISTANCE OF 0.96 FEET; THENCE NORTHEASTERLY ALONG A CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 120.00 FEET THROUGH AN ANGLE OF 272 14' 54" AN ARC LENGTH OF 57.07 FEET; THENCE N 482 46' 30" E A DISTANCE OF 89.06 FEET; THENCE N 882 27' 19" E A DISTANCE OF 63.12 FEET; THENCE NORTHEASTERLY ALONG A CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 70.00 FEET THROUGH AN ANGLE OF 502 43' 47" AN ARC LENGTH OF 61.98 FEET; THENCE N 372 43'32" E A DISTANCE OF 74.01 FEET; THENCE N 752 20' 06" E A DISTANCE OF 69.95 FEET; THENCE NORTHEASTERLY ALONG A CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 100.00 FEET THROUGH AN ANGLE OF 432 00' 38" AN ARC LENGTH OF 75.07 FEET; THENCE N 322 19' 28" E A DISTANCE OF 2.89 FEET; THENCE NORTHEASTERLY ALONG A CURVE CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 800.00 FEET THROUGH AN ANGLE OF 142 49' 48" A DISTANCE OF 207.07 FEET. (THE ENDING RADIAL BEARS N 422 50' 44" W); THENCE N 002 13' 01" E A DISTANCE OF 77.71 FEET;

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THENCE S 672 43' 58" E A DISTANCE OF 523.77 FEET; THENCE S 364 29' 25" W A DISTANCE OF 788.92 FEET; THENCE S 192 33' 51" W A DISTANCE OF 5.00 FEET; THENCE SOUTHWESTERLY AND SOUTHEASTERLY ALONG A CURVE CONCAVE EASTERLY HAVING A RADIUS OF 390.00 FEET THROUGH AN ANGLE OF 304 43' 31" AN ARC LENGTH OF 209.14 FEET. (THE ENDING RADIAL BEARS S 782 50' 20" W); THENCE S 232 39' 31" W A DISTANCE OF 16.66 FEET TO THE POINT OF BEGINNING. ALSO EXCEPTING THEREFROM THOSE PORTIONS OF THE NORTHWEST QUARTER OF SECTION 17, THE NORTHEAST QUARTER OF SECTION 18 AND THE SOUTHEAST QUARTER OF SECTION 7, TOWNSHIP S SOUTH, RANGE 8 EAST SAN BERNARDINO MERIDIAN IN THE CITY OF INDIO, COUNTY OF RIVERSIDE, CALIFORNIA, MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHWEST QUARTER OF SAID SECTION 17; THENCE N 892 53' 19" E ALONG THE NORTH LINE OF SAID SECTION 17 A DISTANCE OF 184.84 FEET; THENCE S 332 25' 33" E A DISTANCE OF 48.46 FEET; THENCE S 244 53' 21" E A DISTANCE OF 155.35 FEET; THENCE S 214 09' 29" E A DISTANCE OF 122.75 FEET; THENCE S 112 18' 08" W A DISTANCE OF 9.98 FEET TO THE BEGINNING OF A NONTANGENT CURVE; THENCE SOUTHWESTERLY AND NORTHWESTERLY ALONG A CURVE CONCAVE NORTHERLY HAVING A RADIUS OF 200.00 FEET THROUGH A CENTRAL ANGLE OF 252 14' 34" AN ARC LENGTH OF 88.11 FEET. (THE BEGINNING RADIAL BEARS S 042 25' 47" E); THENCE N 692 11' 13" W A DISTANCE OF 31.57 FEET; THENCE NORTHWESTERLY AND SOUTHWESTERLY ALONG A CURVE CONCAVE SOUTHERLY HAVING A RADIUS OF 125.00 FEET THROUGH A CENTRAL ANGLE OF 432 29' 47" AN ARC LENGTH OF 94.89 FEET; THENCE S 672 19' 00" W A DISTANCE OF 12.40 FEET; THENCE SOUTHWESTERLY ALONG A CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 600.00 FEET THROUGH A CENTRAL ANGLE OF 112 38' 51" AN ARC LENGTH OF 121.97 FEET; THENCE S 782 57' 51" W A DISTANCE OF 17.16 FEET; THENCE SOUTHWESTERLY ALONG A CURVE CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 100.00 FEET THROUGH A CENTRAL ANGLE OF 92 45' 49" AN ARC LENGTH OF 17.04 FEET; THENCE S 692 12' 02" W A DISTANCE OF 60.68 FEET; THENCE SOUTHWESTERLY ALONG A CURVE CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 300.00 FEET THROUGH A CENTRAL ANGLE OF 152 25' 21" AN ARC LENGTH OF 80.75 FEET; THENCE S 532 46' 41" W A DISTANCE OF 9.73 FEET; THENCE SOUTHWESTERLY ALONG A CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 200.00 FEET THROUGH A CENTRAL ANGLE OF 214 30' 19" AN ARC LENGTH OF 75.07 FEET;
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THENCE S 752 17' 00" W A DISTANCE OF 11.70 FEET; THENCE SOUTHWESTERLY ALONG A CURVE CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 500.00 FEET THROUGH A CENTRAL ANGLE OF 72 44' 52" AN ARC LENGTH OF 67.61 FEET; THENCE S 672 32' 08" W A DISTANCE OF 61.04 FEET; THENCE N 844 05' 36" W A DISTANCE OF 97.01 FEET TO THE BEGINNING OF A NONTANGENT CURVE; THENCE SOUTHWESTERLY ALONG A CURVE CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 629.50 FEET THROUGH A CENTRAL ANGLE OF 44 53' 24" AN ARC LENGTH OF 53.73 FEET (THE BEGINNING RADIAL BEARS N 654 30' 26"W); THENCE S 194 36' 10" W A DISTANCE OF 198.88 FEET; THENCE SOUTHWESTERLY ALONG A CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 325.00 FEET THROUGH A CENTRAL ANGLE OF 282 26' 53" AN ARC LENGTH OF 161.37 FEET; THENCE S 482 03' 03" W A DISTANCE OF 210.22 FEET; THENCE SOUTHWESTERLY ALONG A CURVE CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 379.50 FEET THROUGH A CENTRAL ANGLE OF 232 22' 40" AN ARC LENGTH OF 154.84 FEET; THENCE S 242 40' 23" W A DISTANCE OF 240.30 FEET; THENCE N 652 19' 37" W A DISTANCE OF 41.00 FEET; THENCE N 244 40' 23" E A DISTANCE OF 240.30 FEET; THENCE NORTHEASTERLY ALONG A CURVE CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 420.50 FEET THROUGH A CENTRAL ANGLE OF 232 22' 40" AN ARC LENGTH OF 171.57 FEET; THENCE N 48' 03' 03" E A DISTANCE OF 210.22 FEET; THENCE NORTHEASTERLY ALONG A CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 284.00 THROUGH A CENTRAL ANGLE OF 282 26' 53" AN ARC LENGTH OF 141.01 FEET; THENCE N 192 36' 10" E A DISTANCE OF 198.88 FEET; THENCE NORTHEASTERLY ALONG A CURVE CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 670.50 FEET THROUGH A CENTRAL ANGLE OF 42 36' 43" AN ARC LENGTH OF 53.97 FEET (THE ENDING RADIAL BEARS N 652 47' 08" W); THENCE N 702 43' 36" W A DISTANCE OF 122.08 FEET; THENCE N 174 45' 36" W A DISTANCE OF 53.40 FEET TO THE BEGINNING OF A NONTANGENT CURVE; THENCE NORTHEASTERLY ALONG A CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 395.00 FEET THROUGH A CENTRAL ANGLE OF 432 31' 32" AN ARC LENGTH OF 300.07 FEET. (THE BEGINNING RADIAL BEARS S 342 09' 50" E); THENCE W 122 18' 38" E A DISTANCE OF 153.72 FEET; THENCE NORTHEASTERLY AND NORTHWESTERLY ALONG A CURVE CONCAVE WESTERLY HAVING A RADIUS OF 1,070.00 FEET THROUGH A CENTRAL ANGLE OF 262 49' 21" AN ARC LENGTH OF 500.91 FEET. (THE ENDING RADIAL BEARS N 752 29' 17" E); THENCE S 862 35' 16" W A DISTANCE OF 150.84 FEET; THENCE N 52 44' 17" E A DISTANCE OF 292.64 FEET; THENCE S 672 43' 58" E A DISTANCE OF 400.79 FEET;

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THENCE SOUTHEASTERLY ALONG A CURVE CONCAVE SOUTHWESTERLY HAVING A RADIUS OF 829.93 FEET THROUGH A CENTRAL ANGLE OF 174 17' 28" AN ARC LENGTH OF 250.46 FEET TO THE EAST LINE OF SAID SECTION 7. (THE ENDING RADIAL BEARS N 392 33' 30" E); THENCE S 002 04' 28" E ALONG THE EAST LINE OF SAID SECTION 7 A DISTANCE OF 529.57 FEET TO THE NORTHWEST CORNER OF SAID SECTION 17 AND THE POINT OF BEGINNING. PARCEL 12: THE EAST HALF OF THE SOUTHWEST QUARTER OF SECTION 7, TOWNSHIP 5 SOUTH RANGE 8 EAST, SAN BERNARDINO BASE AND MERIDIAN; EXCEPTING THEREFROM THAT PORTION CONVEYED TO COACHELLA VALLEY COUNTY WATER DISTRICT, DEED RECORDED DECEMBER 12, 1947 IN BOOK 877 PAGE 338 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA.

MI1111111 1111 1111E111 111111111111111111111111111 1 C° Y3T
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Exhibit B LEGAL DESCRIPTION OF PARTICIPATING PROPERTY PARCEL 1: THE WEST HALF OF THE SOUTHEAST QUARTER OF SECTION 18, TOWNSHIP 5 SOUTH, RANGE 8 EAST, SAN BERNARDINO BASE AND MERIDIAN, ACCORDING TO THE OFFICIAL PLAT THEREOF. PARCEL 2: THE NORTH HALF OF THE EAST HALF OF THE SOUTHWEST QUARTER OF SECTION 18, TOWNSHIP 5 SOUTH, RANGE 8 EAST, SAN BERNARDINO BASE AND MERIDIAN, ACCORDING TO THE OFFICIAL PLAT THEREOF. PARCEL 2A: A NON-EXCLUSIVE EASEMENT FOR INGRESS AND EGRESS OVER THE EASTERLY 20 FEET OF THE SOUTH HALF OF THE EAST HALF OF THE SOUTHWEST QUARTER OF SECTION 18, TOWNSHIP 5 SOUTH, RANGE 8 EAST, SAN BERNARDINO BASE AND MERIDIAN, ACCORDING TO THE OFFICIAL PLAT THEREOF. PARCEL 3: THE SOUTHEAST QUARTER OF THE NORTHWEST QUARTER OF SECTION 18, TOWNSHIP 5 SOUTH, RANGE 8 EAST, SAN BERNARDINO BASE AND MERIDIAN, ACCORDING TO THE OFFICIAL PLAT THEREOF, EXCEPTING THEREFROM THAT PORTION THEREOF LYING NORTHERLY OF THE FOLLOWING DESCRIBED LINE: COMMENCING AT THE NORTHEAST CORNER OF THE SOUTH HALF OF SAID NORTHEAST QUARTER OF SECTION 18; THENCE WESTERLY A DISTANCE OF 550.00 FEET ALONG THE NORTHERLY BOUNDARY OF SAID SOUTH HALF OF THE NORTHWEST QUARTER OF SAID SECTION 18, TO THE TRUE POINT OF BEGINNING OF THE LINE TO BE DESCRIBED; THENCE SOUTHEASTERLY ON A LINE PARALLEL WITH THE SOUTHWESTERLY BOUNDARY LINE OF THE ALL AMERICAN CANAL RIGHT (S) OF WAY 300.00 FEET WIDE, SHOWN AS PAR. C-6A-408 ON THE U.S. GOVERNMENT LAND MAP DATED MAY 3, 1946, SAID RIGHT (S) OF WAY IS ALSO REFERRED TO IN THAT CERTAIN DEED RECORDED JULY 22, 1949 IN BOOK 1096 PAGE 103 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA, TO A POINT IN THE EASTERLY BOUNDARY OF SAID NORTHWEST QUARTER OF SECTION 18, SAID POINT BEING THE EASTERLY TERMINUS OF SAID LINE BEING DESCRIBED.
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PARCEL 4: THE SOUTHWEST QUARTER OF THE NORTHWEST QUARTER OF SECTION 18, TOWNSHIP 5 SOUTH, RANGE 8 EAST, SAN BERNARDINO BASE AND MERIDIAN, ACCORDING TO THE OFFICIAL PLAT THEREOF, EXCEPTING THEREFROM THE WESTERLY 30 FEET THEREOF.

40596965.14

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Exhibit C-1 LEGAL DESCRIPTION OF COMMON AREAS THAT PORTION OF SECTION 18, TOWNSHIP 5 SOUTH, RANGE 8 EAST, SAN BERNARDINO MERIDIAN, IN THE CITY OF INDIO, COUNTY OF RIVERSIDE, CALIFORNIA, MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHWEST CORNER OF SAID SECTION 18; THENCE S 00° 08' 18" W ALONG THE WEST LINE OF SECTION 18 A DISTANCE OF 1,229.12 FEET; THENCE S 89° 51' 42" E A DISTANCE OF 55.00 FEET TO THE EASTERLY RIGHT OF WAY LINE OF GOLF CENTER PARKWAY AND THE POINT OF BEGINNING. THENCE N 00° 08' 18" E ALONG THE EASTERLY RIGHT OF WAY LINE OF GOLF CENTER PARKWAY A DISTANCE OF 46.00 FEET; THENCE S 89° 51' 42" E A DISTANCE OF 139.02 FEET; THENCE SOUTHEASTERLY ALONG A CURVE CONCAVE SOUTHWESTERLY HAVING A RADIUS OF 381.00 FEET THROUGH A CENTRAL ANGLE OF 17° 13' 25" AN ARC LENGTH OF 114.53 FEET; THENCE S 72° 38' 17" E A DISTANCE OF 14.59 FEET; THENCE S 72° 55' 44" E A DISTANCE OF 95.71 FEET; THENCE SOUTHEASTERLY AND NORTHEASTERLY ALONG A CURVE CONCAVE NORTHEASTERLY HAVING A RADIUS OF 390.00 FEET THROUGH A CENTRAL ANGLE OF 12° 32' 53" AN ARC LENGTH OF 85.41 FEET; THENCE N 89° 37' 44" E A DISTANCE OF 191.12 FEET; THENCE NORTHEASTERLY ALONG A CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 1,920.00 FEET THROUGH A CENTRAL ANGLE OF 5° 51' 15" AN ARC LENGTH OF 196.18 FEET; THENCE N 83° 46' 29" E A DISTANCE OF 51.23 FEET; THENCE NORTHEASTERLY AND SOUTHEASTERLY ALONG A CURVE CONCAVE SOUTHERLY THROUGH A CENTRAL ANGLE OF 13° 37'01" AN ARC LENGTH OF 470.57 FEET TO THE BEGINNING OF A REVERSE CURVE; THENCE SOUTHEASTERLY AND NORTHEASTERLY ALONG A CURVE CONCAVE NORTHERLY THROUGH A CENTRAL ANGLE OF 16° 28' 01" AN ARC LENGTH OF 178.19 FEET; THENCE N 80° 55' 29" E A DISTANCE OF 251.53 FEET; THENCE NORTHEASTERLY AND SOUTHEASTERLY ALONG A CURVE CONCAVE SOUTHERLY HAVING A RADIUS OF 680.00 FEET THROUGH A CENTRAL ANGLE OF 41° 45' 26" AN ARC LENGTH OF 495.58 FEET; THENCE S 57° 19' 05" E A DISTANCE OF 290.90 FEET; THENCE SOUTHEASTERLY AND NORTHEASTERLY ALONG A CURVE CONCAVE NORTHERLY HAVING A RADIUS OF 820.00 FEET THROUGH A CENTRAL ANGLE OF 39° 53' 15" AN ARC LENGTH OF 570.86 FEET; THENCE N 82° 47' 40" E A DISTANCE OF 268.96 FEET; THENCE NORTHEASTERLY AND SOUTHEASTERLY ALONG A CURVE CONCAVE SOUTHERLY HAVING A RADIUS OF 655.00 FEET THROUGH A CENTRAL ANGLE OF

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26° 11' 17" AN ARC LENGTH OF 299.38 FEET TO THE BEGINNING OF A REVERSE CURVE; THENCE SOUTHEASTERLY AND NORTHEASTERLY ALONG A CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 220.00 FEET THROUGH A CENTRAL ANGLE OF 84° 18' 34" AN ARC LENGTH OF 323.73 FEET; THENCE N 24° 40' 23" E A DISTANCE OF 279.88 FEET TO THE NORTHERLY RIGHT OF WAY LINE OF THE ALL AMERICAN CANAL RIGHT OF WAY, 300 FEET WIDE, AS SAID RIGHT OF WAY IS REFERRED TO IN THAT CERTAIN DEED RECORDED JULY 22, 1949 IN BOOK 1096, PAGES 103 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA; THENCE N 65° 19' 37" W ALONG SAID NORTHERLY LINE A DISTANCE OF 282.40 FEET; THENCE CONTINUING ALONG SAID NORTHERLY LINE NORTHWESTERLY ALONG A CURVE CONCAVE SOUTHWESTERLY HAVING A RADIUS OF 773.69 THROUGH A CENTRAL ANGLE OF 2° 45' 58" AN ARC LENGTH OF 37.35 FEET; THENCE N 24° 40' 23" E A DISTANCE OF 26.84 FEET; THENCE NORTHEASTERLY ALONG A CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 369.50 FEET THROUGH A CENTRAL ANGLE OF 5° 44' 01" AN ARC LENGTH OF 36.98 FEET; THENCE S 71° 03' 39" E A DISTANCE OF 61.00 FEET; THENCE SOUTHWESTERLY AND SOUTHEASTERLY ALONG A CURVE CONCAVE NORTHEASTERLY HAVING A RADIUS OF 20.50 FEET THROUGH A CENTRAL ANGLE OF 84° 15' 59" AN ARC LENGTH OF 30.15 FEET; THENCE S 65° 19' 37" E A DISTANCE OF 544.49 FEET; THENCE SOUTHEASTERLY AND NORTHEASTERLY ALONG A CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 20.50 FEET THROUGH A CENTRAL ANGLE OF 90° 00' 00" AN ARC LENGTH OF 32.20 FEET; THENCE S 65° 19' 37" E A DISTANCE OF 61.00 FEET; THENCE S 24° 40' 23" W A DISTANCE OF 71.00 FEET TO SAID NORTHERLY LINE OF THE ALL AMERICAN CANAL RIGHT OF WAY, 300.00 FEET WIDE; THENCE N 65° 19' 37" W ALONG SAID NORTHERLY LINE A DISTANCE OF 325.50 FEET; THENCE S 24° 40' 23" W A DISTANCE OF 279.88 FEET; THENCE SOUTHWESTERLY AND NORTHWESTERLY ALONG A CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 280.00 FEET THROUGH A CENTRAL ANGLE OF 84° 18' 34" AN ARC LENGTH OF 412.01 FEET TO THE BEGINNING OF A REVERSE CURVE; THENCE NORTHWESTERLY AND SOUTHWESTERLY ALONG A CURVE CONCAVE SOUTHERLY HAVING A RADIUS OF 595.00 FEET THROUGH A CENTRAL ANGLE OF 26° 11' 17" AN ARC LENGTH OF 271.96 FEET; THENCE S 82° 47' 40" W A DISTANCE OF 268.96 FEET; THENCE SOUTHWESTERLY AND NORTHWESTERLY ALONG A CURVE CONCAVE NORTHERLY HAVING A RADIUS OF 880.00 FEET THROUGH A CENTRAL ANGLE OF 39° 53' 15" AN ARC LENGTH OF 612.63 FEET; THENCE N 57° 19' 05" W A DISTANCE OF 290.90 FEET;

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THENCE NORTHWESTERLY AND SOUTHWESTERLY ALONG A CURVE CONCAVE SOUTHERLY HAVING A RADIUS OF 620.00 FEET THROUGH A CENTRAL ANGLE OF 41° 45' 26" AN ARC LENGTH OF 451.86 FEET; THENCE S 80° 55' 29" W A DISTANCE OF 251.53 FEET; THENCE SOUTHWESTERLY AND NORTHWESTERLY ALONG A CURVE CONCAVE NORTHERLY HAVING A RADIUS OF 680.00 FEET THROUGH A CENTRAL ANGLE OF 16° 28' 01" AN ARC LENGTH OF 195.43 FEET TO THE BEGINNING OF A REVERSE CURVE; THENCE NORTHWESTERLY AND SOUTHWESTERLY ALONG A CURVE CONCAVE SOUTHERLY HAVING A RADIUS OF 1,920.00 FEET THROUGH A CENTRAL ANGLE OF 13° 37' 01" AN ARC LENGTH OF 456.31 FEET; THENCE S 83° 46' 29" W A DISTANCE OF 51.23 FEET; THENCE SOUTHWESTERLY ALONG A CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 1,980.00 FEET THROUGH A CENTRAL ANGLE OF 5° 51' 15" AN ARC LENGTH OF 202.31 FEET; THENCE S 89° 37' 44" W A DISTANCE OF 303.05 FEET; THENCE SOUTHWESTERLY AND NORTHWESTERLY ALONG A CURVE CONCAVE NORTHERLY HAVING A RADIUS OF 410.00 FEET THROUGH A CENTRAL ANGLE OF 9° 02' 45" AN ARC LENGTH OF 64.73 FEET TO THE BEGINNING OF A COMPOUND CURVE; THENCE NORTHWESTERLY ALONG A CURVE CONCAVE NORTHEASTERLY HAVING A RADIUS OF 310.00 FEET THROUGH A CENTRAL ANGLE OF 9° 29' 52" AN ARC LENGTH OF 51.39 FEET TO THE BEGINNING OF A REVERSE CURVE; THENCE NORTHWESTERLY ALONG A CURVE CONCAVE SOUTHWESTERLY HAVING A RADIUS OF 289.00 FEET THROUGH A CENTRAL ANGLE OF 15° 30' 13" AN ARC LENGTH OF 78.20 FEET; THENCE N 89° 51' 42" W A DISTANCE OF 139.04 FEET TO THE EASTERLY RIGHT OF WAY LINE OF SAID GOLF CENTER PARKWAY; THENCE N 00° 08' 18" E ALONG SAID EASTERLY RIGHT OF WAY LINE A DISTANCE OF 46.00 FEET TO THE POINT OF BEGINNING. ALSO MONUMENT SIGNAGE AREAS LISTED BELOW: PARCEL A: THAT PORTION OF SECTION 18, TOWNSHIP 5 SOUTH, RANGE 8 EAST, SAN BERNARDINO MERIDIAN, IN THE CITY OF INDIO, COUNTY OF RIVERSIDE, CALIFORNIA, MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHWEST CORNER OF SAID SECTION 18; THENCE S 00° 08' 18" W ALONG THE WEST LINE OF SECTION 18 AND THE CENTERLINE OF GOLF CENTER PARKWAY A DISTANCE OF 1,229.12 FEET; THENCE S 89° 51' 42" E A DISTANCE OF 55.00 FEET TO THE EASTERLY RIGHT OF WAY LINE OF GOLF CENTER PARKWAY; THENCE N 00° 08' 18" E ALONG THE EASTERLY RIGHT OF WAY LINE OF GOLF CENTER PARKWAY A DISTANCE OF 46.00 FEET TO THE POINT OF BEGINNING;

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THENCE CONTINUING ALONG SAID EASTERLY RIGHT OF WAY LINE N 00° 08' 18" E A DISTANCE OF 44.00 FEET; THENCE S 89° 51' 42" E A DISTANCE OF 59.00 FEET; THENCE S 00° 08' 18" W A DISTANCE OF 44.00 FEET; THENCE N 89° 51' 42" W A DISTANCE OF 59.00 FEET TO THE POINT OF BEGINNING. PARCEL B: THAT PORTION OF SECTION 18, TOWNSHIP 5 SOUTH, RANGE 8 EAST, SAN BERNARDINO MERIDIAN, IN THE CITY OF INDIO, COUNTY OF RIVERSIDE, CALIFORNIA, MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHWEST CORNER OF SAID SECTION 18; THENCE S 00° 08' 18" W ALONG THE WEST LINE OF SECTION 18 AND THE CENTERLINE OF GOLF CENTER PARKWAY A DISTANCE OF 1,229.12 FEET; THENCE S 89° 51' 42" E A DISTANCE OF 55.00 FEET TO THE EASTERLY RIGHT OF WAY LINE OF GOLF CENTER PARKWAY; THENCE S 00° 08' 18" W ALONG THE EASTERLY RIGHT OF WAY LINE OF GOLF CENTER PARKWAY A DISTANCE OF 46.00 FEET TO THE POINT OF BEGINNING; THENCE S 89° 51' 42" E A DISTANCE OF 59.00 FEET; THENCE S 00° 08' 18" W A DISTANCE OF 39.25 FEET TO THE SOUTH LINE OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SAID SECTION 18; THENCE S 89° 37' 44" W ALONG SAID SOUTH LINE OF THE NORTHWEST QUARTER OF THE NORTHWEST QUARTER OF SECTION 18 A DISTANCE OF 59.00 FEET TO THE EASTERLY RIGHT OF WAY LINE OF GOLF CENTER PARKWAY; THENCE N 00° 08' 18" E ALONG SAID EASTERLY RIGHT OF WAY LINE A DISTANCE OF 39,78 FEET TO THE POINT OF BEGINNING.

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Exhibit C-2 DESCRIPTION OF COMMON FACILITIES The following are the Common Facilities which are or shall be constructed on the Common Areas. 1. A paved road of a size sufficient to accommodate the expected increase in traffic due to development of all Parcels serviced by the road with a landscaped boulevard/median strip, curb, gutter and sidewalks which road originates at Golf Center Parkway following the present course of Landmark Golf Parkway and terminating at the entrance to the parcels adjacent to the Landmark Golf Course parking lot as required and approved by the City of Indio. 2. Landscaping on both sides of the road from the edge of the sidewalk and/or curb as required and approved by the City of Indio. 3. All landscaping within the Common Areas will be irrigated to adequately sustain all planted material. 4. Street lighting to meet all requirements of the City of Indio. 5. A bridge across the All American Canal of a size sufficient to accommodate the expected increase in traffic due to development of all Parcels to be serviced by the bridge. 6. The entry monument signs and related landscaping as approved by the City of Indio on June 25, 2003. 7. All utility pipes, cables, conduits and appurtenances required to serve the Parcels that are not constructed and/or serviced by the utility provider, including without limitation: gas, water, storm and sanitary sewerage, electrical power and telecommunications 8. Traffic control, safety and directional signage and related landscaping as required and approved by the City of Indio.

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Exhibit D GOLF COURSE THE LAND REFERRED TO HEREIN IS SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF RIVERSIDE, CITY OF INDIO AND IS DESCRIBED AS FOLLOWS: PARCEL 1: GOVERNMENT LOT 2 IN THE SOUTHWEST QUARTER OF SECTION 7, TOWNSHIP 5 SOUTH, RANGE 8 EAST, SAN BERNARDINO BASE AND MERIDIAN, AS SHOWN BY UNITED STATES GOVERNMENT SURVEY, APPROVED JULY 15, 1856; EXCEPTING THEREFROM PARCEL C-462-A AND PARCEL C-301-R-1, AS CONVEYED TO THE UNITED STATES OF AMERICA BY DEED RECORDED FEBRUARY 24, 1950 IN BOOK 1149 PAGE 544 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. PARCEL 2: INTENTIONALLY DELETED. PARCEL 3: INTENTIONALLY DELETED. PARCEL 4: THAT PORTION OF THE NORTH ONE-HALF OF THE NORTHWEST ONE-QUARTER OF SECTION 18, TOWNSHIP 5 SOUTH, RANGE 8 EAST, SAN BERNARDINO BASE AND MERIDIAN, LYING NORTHEASTERLY OF THE ALL AMERICAN CANAL RIGHT-OFWAY, 300 FEET WIDE, SHOWN AS PAR. C-6A-408 ON THE U.S. GOVERNMENT LAND MAP DATED MAY 3, 1946, SAID RIGHT-OF-WAY IS ALSO REFERRED TO IN THAT CERTAIN DEED RECORDED JULY 22, 1949, IN BOOK 1096 PAGE 103 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. PARCEL 5: THE NORTH ONE-HALF OF GOVERNMENT LOT 2 IN THE NORTHWEST ONEQUARTER OF SECTION 18 ACCORDING TO THE OFFICIAL PLAT THEREOF FOR TOWNSHIP 5 SOUTH, RANGE 8 EAST, SAN BERNARDINO BASE AND MERIDIAN, IN THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA; EXCEPTING THEREFROM THE SOUTHERLY 100.00 FEET THEREOF;
EGO-864982

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ALSO EXCEPTING THEREFROM THAT PORTION LYING NORTHEASTERLY OF THE SOUTHWESTERLY LINE OF THE ALL AMERICAN CANAL RIGHT-OF-WAY, 300.00 FEET WIDE, SHOWN AS PAR. C-6A-408 ON U.S. GOVERNMENT LAND MAP DATED MAY 3, 1946, SAID RIGHT-OF-WAY IS ALSO REFERRED TO IN THAT CERTAIN DEED RECORDED JULY 22, 1949 IN BOOK 1096 PAGE 103 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA; ALSO EXCEPTING THEREFROM THE WESTERLY 30 FEET THEREOF. PARCEL #6: THE NORTH ONE-HALF OF THE NORTHWEST ONE-QUARTER OF SECTION 18 ACCORDING TO THE OFFICIAL PLAT THEREOF FOR TOWNSHIP 5 SOUTH, RANGE 8 EAST, SAN BERNARDINO BASE AND MERIDIAN, IN THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA; EXCEPTING THEREFROM THAT PORTION OF THE NORTH ONE-HALF OF GOVERNMENT LOT 2 IN SAID NORTHWEST ONE-QUARTER OF SECTION 18 LYING NORTHERLY OF THE SOUTHERLY 100.00 FEET THEREOF; ALSO EXCEPTING THEREFROM THE WESTERLY 30.00 FEET THEREOF; ALSO EXCEPTING THEREFROM THAT PORTION THEREOF LYING NORTHEASTERLY OF THE SOUTHWESTERLY BOUNDARY LINE OF THE ALL AMERICAN CANAL RIGHT-OF-WAY 300.00 FEET WIDE SHOWN AS PAR. C-6A-408 ON U.S. GOVERNMENT LAND MAP DATED MAY 3, 1946; SAID RIGHT-OF-WAY IS ALSO REFERRED TO IN THAT CERTAIN DEED RECORDED JULY 22, 1949 IN BOOK 1096 PAGE 103 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA; ALSO EXCEPTING THEREFROM THAT PORTION THEREOF LYING WITHIN THAT CERTAIN PARCEL OF LAND DESCRIBED AS FOLLOWS: COMMENDING AT THE NORTHEAST CORNER OF THE SOUTH ONE-HALF OF SAID NORTHWEST ONE-QUARTER OF SECTION 18; THENCE WESTERLY 550.00 FEET ALONG THE NORTHERLY BOUNDARY OF THE SOUTH ONE-HALF OF THE NORTHWEST ONE-QUARTER OF SECTION 18 TO THE TRUE POINT OF BEGINNING; THENCE SOUTHEASTERLY ON A LINE PARALLEL WITH THE SOUTHWESTERLY BOUNDARY OF THE ALL AMERICAN CANAL RIGHT-OF-WAY, 300.00 FEET WIDE, SHOWN AS PARCEL C-6A-408 ON U.S. GOVERNMENT LAND MAP DATED MAY 3, 1946. SAID RIGHT-OF-WAY IS ALSO REFERRED TO IN THAT CERTAIN DEED RECORDED JULY 22, 1946 IN BOOK 1096 PAGE 103 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA, TO THE EASTERLY BOUNDARY OF SAID NORTHWEST ONE-QUARTER OF SECTION 18;

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THENCE NORTHERLY ALONG SAID EASTERLY BOUNDARY TO THE SOUTHWESTERLY LINE OF SAID ALL AMERICAN CANAL RIGHT-OF-WAY, 300.00 FEET WIDE; THENCE NORTHWESTERLY ALONG SAID SOUTHWESTERLY RIGHT-OF-WAY LINE TO A LINE THAT PASSES THROUGH THE TRUE POINT OF BEGINNING AND IS PARALLEL WITH SAID EASTERLY BOUNDARY OF THE NORTHWEST ONEQUARTER OF SECTION 18; THENCE SOUTHERLY ALONG LAST SAID PARALLEL LINE TO THE TRUE POINT OF BEGINNING. PARCEL 7: THAT PORTION OF THE NORTHEAST QUARTER OF SECTION 18, TOWNSHIP 5 SOUTH, RANGE 8 EAST, SAN BERNARDINO BASE AND MERIDIAN, LYING SOUTHERLY AND WESTERLY OF THE ALL AMERICAN CANAL RIGHT-OF-WAY, 300 FEET WIDE, AS REFERRED TO AND DESCRIBED IN THAT CERTAIN DEED FILED FOR RECORD JULY 22, 1949 IN BOOK 1096 PAGE 103 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA; EXCEPTING THEREFROM THAT PORTION CONVEYED TO MILDRED SOUTHERLAND, AN UNMARRIED WOMAN, BY DEED RECORDED JULY 22, 1949 IN BOOK 1096 PAGE 103 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA. PARCEL 8: A PORTION OF THE SOUTH HALF OF THE SOUTHEAST QUARTER OF THE NORTHEAST QUARTER OF SECTION 18, TOWNSHIP 5 SOUTH, RANGE 8 EAST, SAN BERNARDINO BASE AND MERIDIAN, AS SHOWN BY UNITED STATES GOVERNMENT SURVEY, MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWEST CORNER OF THE SOUTHEAST QUARTER OF THE NORTHEAST QUARTER OF SAID SECTION 18; THENCE (1ST COURSE) EAST ALONG THE SOUTH LINE OF THE NORTHEAST QUARTER OF SAID SECTION 18 TO ITS INTERSECTION WITH THE SOUTHWESTERLY LINE OF THE ALL AMERICAN CANAL RIGHT-OF-WAY AS NOW LOCATED; THENCE (2ND COURSE) NORTHWESTERLY ALONG THE SOUTHWESTERLY LINE OF THE ALL AMERICAN CANAL RIGHT-OF-WAY, 700 FEET, MORE OR LESS, TO THE INTERSECTION OF THE SOUTHWESTERLY LINE OF THE ALL AMERICAN CANAL RIGHT-OF-WAY AND A LINE, DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWEST CORNER OF THE SOUTHEAST QUARTER OF THE NORTHEAST QUARTER OF SAID SECTION 18;

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THENCE NORTHEASTERLY IN A DIRECT LINE AND ENDING AT THE NORTHEAST CORNER OF THE SOUTHEAST QUARTER OF THE NORTHEAST QUARTER OF SAID SECTION 18; THENCE (3RD COURSE) SOUTHWESTERLY IN A DIRECT LINE TO THE POINT OF BEGINNING. PARCEL 9: A PORTION OF THE SOUTHEAST QUARTER OF THE SOUTHWEST QUARTER OF THE NORTHEAST QUARTER AND A PORTION OF THE SOUTHWEST QUARTER OF THE SOUTHEAST QUARTER OF THE NORTHEAST QUARTER OF SECTION 18, TOWNSHIP 5 SOUTH, RANGE 8 EAST, SAN BERNARDINO BASE AND MERIDIAN, AS SHOWN BY UNITED STATES GOVERNMENT SURVEY, MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING A THE SOUTHEAST CORNER OF THE SOUTHWEST QUARTER OF THE NORTHEAST QUARTER OF SAID SECTION 18; THENCE (1ST COURSE) WEST ALONG THE SOUTH LINE OF THE NORTHEAST QUARTER OF SECTION 18, A DISTANCE OF 45 FEET; THENCE (2ND COURSE) NORTH AND PARALLEL WITH THE EAST LINE OF THE SOUTHWEST QUARTER OF THE NORTHEAST QUARTER OF SAID SECTION 18, 5 FEET; THENCE (3RD COURSE) EAST AND PARALLEL WITH THE SOUTH LINE OF THE NORTHEAST QUARTER OF SAID SECTION 18 TO A POINT OF INTERSECTION WITH A LINE DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWEST CORNER OF THE SOUTHEAST QUARTER OF THE NORTHEAST QUARTER OF SAID SECTION 18; THENCE NORTHEASTERLY IN A DIRECT LINE AND ENDING AT THE NORTHEAST CORNER OF THE SOUTHEAST QUARTER OF THE NORTHEAST QUARTER OF SAID SECTION 18; THENCE (4T11 COURSE) SOUTHWESTERLY IN A DIRECT LINE TO THE TRUE POINT OF BEGINNING. PARCEL 10: ALL THAT PORTION OF THE NORTHWEST QUARTER OF SECTION 17, TOWNSHIP 5 SOUTH, RANGE 8 EAST, SAN BERNARDINO BASE AND MERIDIAN, LYING WESTERLY OF THAT CERTAIN PARCEL OF LAND AS CONVEYED TO THE COACHELLA VALLEY WATER DISTRICT BY DEED RECORDED ON NOVEMBER 1, 1948 IN BOOK 1023 PAGE 329 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA.

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PARCEL 11: PARCEL 1 AS SHOWN BY LOT LINE ADJUSTMENT NUMBER -9g RECORDED OF OFFICIAL RECORDS OF /0--/2-4.13 AS INSTRUMENT NO. 2.-a?-3- 879/40 RIVERSIDE COUNTY, CALIFORNIA, MORE PARTICULARLY DESCRIBED AS FOLLOWS: THOSE PORTIONS OF THE SOUTHEAST QUARTER OF SECTION 7, THE NORTHWEST QUARTER OF SECTION 17 AND THE NORTHEAST QUARTER OF SECTION 18, TOWNSHIP 5 SOUTH, RANGE 8 EAST SAN BERNARDINO MERIDIAN IN THE CITY OF INDIO, COUNTY OF RIVERSIDE, CALIFORNIA, MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHWEST CORNER OF SAID SECTION 17; THENCE N 892 53' 19" E ALONG THE NORTH LINE OF SAID SECTION 17 A DISTANCE OF 335.04 FEET; THENCE S 252 09' 28" W A DISTANCE OF 909.20 FEET; THENCE SOUTHEASTERLY ALONG A CURVE CONCAVE NORTHEASTERLY HAVING A RADIUS OF 1557.40 THROUGH A CENTRAL ANGLE OF 82 47' 30" AN ARC LENGTH OF 238.97 FEET; THENCE S 332 56' 58" E A DISTANCE OF 918.89 FEET; THENCE SOUTHEASTERLY ALONG A CURVE CONCAVE NORTHEASTERLY HAVING A RADIUS OF 1557.40 FEET THROUGH A CENTRAL ANGLE OF 212 12' 30" AN ARC LENGTH OF 576.48 FEET; THENCE S 552 09' 28" E A DISTANCE OF 373.61 FEET; THENCE S 332 57' 26" W A DISTANCE OF 259.22 FEET TO THE SOUTHERLY LINE OF THE NORTHWEST QUARTER OF SAID SECTION 17; THENCE N 892 59' 19" W ALONG SAID SOUTH LINE A DISTANCE OF 1920.06 FEET TO THE SOUTHEAST CORNER OF THE NORTHEAST QUARTER OF SAID SECTION 18; THENCE S 892 37' 11" W ALONG THE SOUTH LINE OF THE NORTHEAST QUARTER OF SAID SECTION 18 A DISTANCE OF 71.73 FEET TO THE EASTERLY RIGHT OF WAY LINE OF THE ALL AMERICAN CANAL RIGHT OF WAY, 300.00 FEET WIDE, AS SAID RIGHT OF WAY IS REFERRED TO IN THAT CERTAIN DEED RECORDED JULY 22, 1949 IN BOOK 1096, PAGES 103 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA; THENCE NORTHWESTERLY ALONG A CURVE CONCAVE NORTHEASTERLY HAVING A RADIUS OF 1,232.40 FEET THROUGH A CENTRAL ANGLE OF 52 49' 25" AN ARC LENGTH OF 125.26 FEET. (THE BEGINNING RADIAL BEARS S 582 50' 58" W); THENCE N 252 19' 37" W A DISTANCE OF 599.50 FEET; THENCE NORTHWESTERLY ALONG A CURVE CONCAVE SOUTHWESTERLY HAVING A RADIUS OF 1,155.37 FEET THROUGH A CENTRAL ANGLE OF 402 00' 00" AN ARC LENGTH OF 806.60 FEET; THENCE N 652 19' 37" W A DISTANCE OF 747.82 FEET; THENCE NORTHWESTERLY AND SOUTHWESTERLY ALONG A CURVE CONCAVE SOUTHWESTERLY HAVING A RADIUS OF 773.69 FEET THROUGH A CENTRAL ANGLE OF 282 18' 08" AN ARC LENGTH OF 382.18 FEET;

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THENCE S 862 22' 15" W A DISTANCE OF 282.42 FEET; THENCE SOUTHWESTERLY AND NORTHWESTERLY ALONG A CURVE CONCAVE NORTHEASTERLY HAVING A RADIUS OF 373.69 FEET THROUGH A CENTRAL ANGLE OF 362 18' 40" AN ARC LENGTH OF 236.83 FEET; THENCE N 572 19' 05" W A DISTANCE OF 187.55 FEET TO THE WEST LINE OF THE NORTHEAST QUARTER OF SAID SECTION 18; THE PREVIOUS EIGHT COURSES BEING ALONG THE EASTERLY AND NORTHERLY RIGHT OF WAY LINE OF SAID ALL AMERICAN CANAL RIGHT OF WAY; THENCE N 002 21' 43" E ALONG THE WEST LINE OF THE NORTHEAST QUARTER OF SAID SECTION 18 A DISTANCE OF 880.16 FEET TO THE NORTHWEST CORNER OF THE NORTHEAST QUARTER OF SAID SECTION 18 ALSO BEING THE SOUTHWEST CORNER OF THE SOUTHEAST QUARTER OF SAID SECTION 7; THENCE N 002 00' 25" E ALONG THE WEST LINE OF THE SOUTHEAST QUARTER OF SAID SECTION 17 A DISTANCE OF 1,104.67 FEET; THENCE N 882 00' 32" E A DISTANCE OF 1,114.92 FEET; THENCE NORTHEASTERLY AND SOUTHEASTERLY ALONG A CURVE CONCAVE SOUTHERLY HAVING A RADIUS OF 829.93 FEET THROUGH A CENTRAL ANGLE OF 242 15' 30" AN ARC LENGTH OF 351.38 FEET; THENCE S 672 43' 58" E A DISTANCE OF 1,071.60 FEET; THENCE SOUTHEASTERLY ALONG A CURVE CONCAVE SOUTHWESTERLY HAVING A RADIUS OF 829.93 FEET THROUGH A CENTRAL ANGLE OF 172 17' 28" AN ARC LENGTH OF 250.46 FEET TO THE EAST LINE OF SAID SECTION 7. (THE ENDING RADIAL BEARS N 392 33' 30" E); THENCE S 002 04' 28" E ALONG THE EAST LINE OF SAID SECTION 7 A DISTANCE OF 529.57 FEET TO THE POINT OF BEGINNING. EXCEPTING THEREFROM THOSE PORTIONS OF THE SOUTHEAST QUARTER OF SECTION 7 AND THE NORTHEAST QUARTER OF SECTION 18, TOWNSHIP 5 SOUTH, RANGE 8 EAST SAN BERNARDINO MERIDIAN IN THE CITY OF INDIO, COUNTY OF RIVERSIDE, CALIFORNIA, MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHEAST CORNER OF SAID SECTION 7; THENCE S 892 36' 30" W ALONG THE SOUTH LINE OF SAID SECTION 7 A DISTANCE OF 1,182.41 FEET TO THE POINT OF BEGINNING; THENCE S 232 39' 31" W A DISTANCE OF 47.73 FEET; THENCE N 662 20' 29" W A DISTANCE OF 2.56 FEET; THENCE NORTHWESTERLY AND SOUTHWESTERLY ALONG A CURVE CONCAVE SOUTHERLY HAVING A RADIUS OF 60.00 FEET THROUGH AN ANGLE OF 852 06' 41" AN ARC LENGTH OF 89.13 FEET; THENCE S 282 32' 50" W A DISTANCE OF 121.59 FEET; THENCE SOUTHWESTERLY ALONG A CURVE CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 450.00 FEET THROUGH AN ANGLE OF 142 36' 27" AN ARC LENGTH OF 114.73 FEET. (THE ENDING RADIAL BEARS N 762 03' 37" W); THENCE S 562 52' 20" W A DISTANCE OF 234.18 FEET; THENCE S 272 44' 27" E A DISTANCE OF 62.75 FEET;

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D-6

THENCE SOUTHEASTERLY AND SOUTHWESTERLY ALONG A CURVE CONCAVE WESTERLY HAVING A RADIUS OF 400.50 FEET THROUGH AN ANGLE OF 402 18' 34" AN ARC LENGTH OF 281.76 FEET; THENCE S 124 34' 08" W A DISTANCE OF 143.70 FEET; THENCE SOUTHWESTERLY ALONG A CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 520.50 FEET THROUGH AN ANGLE OF 52 46' 20" AN ARC LENGTH OF 52.44 FEET; THENCE S 189 20' 28" W A DISTANCE OF 115.67 FEET; THENCE SOUTHWESTERLY ALONG A CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 420.50 FEET THROUGH AN ANGLE OF Og 35' 54" AN ARC LENGTH OF 4.39 FEET; THENCE N 712 03' 38" W A DISTANCE OF 41.00 FEET; THENCE NORTHEASTERLY ALONG A CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 379.50 FEET THROUGH AN ANGLE OF 02 35' 54" AN ARC LENGTH OF 3.96 FEET; THENCE N 189 20' 28" E A DISTANCE OF 115.67 FEET; THENCE NORTHEASTERLY ALONG A CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 479.50 FEET THROUGH AN ANGLE OF 52 46' 20" AN ARC LENGTH OF 48.31 FEET; THENCE N 129 34' 08" E A DISTANCE OF 143.70 FEET; THENCE NORTHEASTERLY AND NORTHWESTERLY ALONG A CURVE CONCAVE WESTERLY HAVING A RADIUS OF 359.50 FEET THROUGH AN ANGLE OF 269 08' 46" AN ARC LENGTH OF 164.05 FEET. (THE ENDING RADIAL BEARS N 762 25' 22" E); THENCE N 789 18' 15" W A DISTANCE OF 65.06 FEET; THENCE N OP 28' 46" E A DISTANCE OF 11.50 FEET; THENCE NORTHEASTERLY AND NORTHWESTERLY ALONG A CURVE CONCAVE SOUTHWESTERLY HAVING A RADIUS OF 58.67 FEET THROUGH AN ANGLE OF 679 58' 58" AN ARC LENGTH OF 69.61 FEET TO THE BEGINNING OF A REVERSE CURVE; THENCE NORTHWESTERLY ALONG A CURVE CONCAVE NORTHEASTERLY HAVING A RADIUS OF 167.36 FEET THROUGH AN ANGLE OF 209 18' 14" AN ARC LENGTH OF 59.31 FEET TO THE BEGINNING OF A REVERSE CURVE; THENCE NORTHWESTERLY ALONG A CURVE CONCAVE SOUTHWESTERLY HAVING A RADIUS OF 697.70 FEET THROUGH AN ANGLE OF 89 04' 43" AN ARC LENGTH OF 98.37 FEET TO THE BEGINNING OF A COMPOUND CURVE; THENCE NORTHWESTERLY ALONG A CURVE CONCAVE SOUTHWESTERLY HAVING A RADIUS OF 136.08 FEET THROUGH AN ANGLE OF 262 37' 19" AN ARC LENGTH OF 63.23 FEET TO THE BEGINNING OF A REVERSE CURVE; THENCE NORTHWESTERLY ALONG A CURVE CONCAVE NORTHEASTERLY HAVING A RADIUS OF 141.56 FEET THROUGH AN ANGLE OF 382 19' 35" AN ARC LENGTH OF 94.69 FEET TO THE BEGINNING OF A REVERSE CURVE; THENCE NORTHWESTERLY ALONG A CURVE CONCAVE SOUTHWESTERLY HAVING A RADIUS OF 148.09 FEET THROUGH AN ANGLE OF 269 54' 28" AN ARC LENGTH OF 69.55 FEET TO THE BEGINNING OF A REVERSE CURVE;

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D-7

THENCE NORTHWESTERLY ALONG A CURVE CONCAVE NORTHEASTERLY HAVING A RADIUS OF 60.22 FEET THROUGH AN ANGLE OF 482 52' 22" AN ARC LENGTH OF 51.37 FEET TO THE BEGINNING OF A REVERSE CURVE; THENCE NORTHWESTERLY ALONG A CURVE CONCAVE SOUTHWESTERLY HAVING A RADIUS OF 77.43 FEET THROUGH AN ANGLE OF 482 52' 22" AN ARC LENGTH OF 66.05 FEET TO THE BEGINNING OF A REVERSE CURVE; THENCE NORTHWESTERLY ALONG A CURVE CONCAVE NORTHEASTERLY HAVING A RADIUS OF 90.60 FEET THROUGH AN ANGLE OF 422 41' 07" AN ARC LENGTH OF 67.50 FEET TO THE BEGINNING OF A COMPOUND CURVE; THENCE NORTHWESTERLY ALONG A CURVE CONCAVE NORTHEASTERLY HAVING A RADIUS OF 3,717.93 FEET THROUGH AN ANGLE OF 02 23' 24" AN ARC LENGTH OF 25.31 FEET TO THE BEGINNING OF A REVERSE CURVE; THENCE NORTHWESTERLY ALONG A CURVE CONCAVE SOUTHWESTERLY HAVING A RADIUS OF 98.28 FEET THROUGH AN ANGLE OF 332 41' 52" AN ARC LENGTH OF 57.80 FEET TO THE BEGINNING OF A REVERSE CURVE; THENCE NORTHWESTERLY ALONG A CURVE CONCAVE NORTHEASTERLY HAVING A RADIUS OF 133.56 FEET THROUGH AN ANGLE OF 302 07' 04" AN ARC LENGTH OF 70.21 FEET TO THE BEGINNING OF A COMPOUND CURVE; THENCE NORTHWESTERLY AND NORTHEASTERLY ALONG A CURVE CONCAVE NORTHEASTERLY HAVING A RADIUS OF 218.25 FEET THROUGH AN ANGLE OF 322 34' 04" AN ARC LENGTH OF 124.06 FEET TO THE BEGINNING OF A COMPOUND CURVE; THENCE NORTHEASTERLY ALONG A CURVE CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 1104.65 FEET THROUGH AN ANGLE OF 5Q 06' 33" AN ARC LENGTH OF 98.50 FEET TO THE BEGINNING OF A REVERSE CURVE; THENCE NORTHEASTERLY ALONG A CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 1735.87 FEET THROUGH AN ANGLE OF 32 39' 10" AN ARC LENGTH OF 110.67 FEET. THE ENDING RADIAL BEARS S 852 57' 43" E; THENCE N 802 36' 16" W A DISTANCE OF 98.81 FEET; THENCE N 33Q 01' 28" W A DISTANCE OF 137.65 FEET; THENCE S 722 13' 07" E A DISTANCE OF 15.23 FEET; THENCE SOUTHEASTERLY AND NORTHEASTERLY ALONG A CURVE CONCAVE NORTHERLY HAVING A RADIUS OF 110.00 FEET THROUGH AN ANGLE OF 412 16' 21" AN ARC LENGTH OF 79.24 FEET; THENCE N 662 30' 32" E A DISTANCE OF 87.84 FEET; THENCE NORTHEASTERLY AND SOUTHEASTERLY ALONG A CURVE CONCAVE SOUTHERLY HAVING A RADIUS OF 90.00 FEET THROUGH AN ANGLE OF 432 15' 23" AN ARC LENGTH OF 67.95 FEET; THENCE S 702 14' 05" E A DISTANCE OF 3.46 FEET; THENCE SOUTHEASTERLY AND NORTHEASTERLY ALONG A CURVE CONCAVE NORTHERLY HAVING A RADIUS OF 85.00 FEET THROUGH AN ANGLE OF 442 48' 44" AN ARC LENGTH OF 66.48 FEET; THENCE N 642 57' 11" E A DISTANCE OF 4.96 FEET; THENCE NORTHEASTERLY ALONG A CURVE CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 400.00 FEET THROUGH AN ANGLE OF 142 13' 26" AN ARC LENGTH OF 99.30 FEET; I 111111 111111E11 1111111 III1 IIII1 111111 Hi 111111IIIIII 10/231107R9A
40596965.14

D-8

THENCE N 792 10' 39" E A DISTANCE OF 0.03 FEET; THENCE NORTHEASTERLY AND SOUTHEASTERLY ALONG A CURVE CONCAVE SOUTHERLY HAVING A RADIUS OF 175.00 FEET THROUGH AN ANGLE OF 214 21' 08" AN ARC LENGTH OF 65.22 FEET; THENCE S 794 28' 15" E A DISTANCE OF 33.34 FEET; THENCE SOUTHEASTERLY AND NORTHEASTERLY ALONG A CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 50.00 FEET THROUGH AN ANGLE OF 594 07' 00" AN ARC LENGTH OF 51.59 FEET; THENCE N 41° 24' 45" E A DISTANCE OF 67.20 FEET; THENCE NORTHEASTERLY ALONG A CURVE CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 145.00 FEET THROUGH AN ANGLE OF 344 36' 39" AN ARC LENGTH OF 87.59 FEET; THENCE N 764 01' 24" E A DISTANCE OF 0.96 FEET; THENCE NORTHEASTERLY ALONG A CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 120.00 FEET THROUGH AN ANGLE OF 274 14' 54" AN ARC LENGTH OF 57.07 FEET; THENCE N 48° 46' 30" E A DISTANCE OF 89.06 FEET; THENCE N 88° 2T 19" E A DISTANCE OF 63.12 FEET; THENCE NORTHEASTERLY ALONG A CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 70.00 FEET THROUGH AN ANGLE OF 504 43' 47" AN ARC LENGTH OF 61.98 FEET; THENCE N 37° 43' 32" E A DISTANCE OF 74.01 FEET; THENCE N 759 20' 06" E A DISTANCE OF 69.95 FEET; THENCE NORTHEASTERLY ALONG A CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 100.00 FEET THROUGH AN ANGLE OF 432 00' 38" AN ARC LENGTH OF 75.07 FEET; THENCE N 322 19' 28" E A DISTANCE OF 2.89 FEET; THENCE NORTHEASTERLY ALONG A CURVE CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 800.00 FEET THROUGH AN ANGLE OF 14° 49' 48" A DISTANCE OF 207.07 FEET. (THE ENDING RADIAL BEARS N 424 50' 44" W); THENCE N 00° 13' 01" E A DISTANCE OF 77.71 FEET; THENCE S 679 43' 58" E A DISTANCE OF 523.77 FEET; THENCE S 36° 29' 25" W A DISTANCE OF 788.92 FEET; THENCE S 199 33' 51" W A DISTANCE OF 5.00 FEET; THENCE SOUTHWESTERLY AND SOUTHEASTERLY ALONG A CURVE CONCAVE EASTERLY HAVING A RADIUS OF 390.00 FEET THROUGH AN ANGLE OF 304 43' 31" AN ARC LENGTH OF 209.14 FEET. (THE ENDING RADIAL BEARS S 78° 50' 20" W); THENCE S 232 39' 31" W A DISTANCE OF 16.66 FEET TO THE POINT OF BEGINNING. ALSO EXCEPTING THEREFROM THOSE PORTIONS OF THE NORTHWEST QUARTER OF SECTION 17, THE NORTHEAST QUARTER OF SECTION 18 AND THE SOUTHEAST QUARTER OF SECTION 7, TOWNSHIP 5 SOUTH, RANGE 8 EAST SAN BERNARDINO MERIDIAN IN THE CITY OF INDIO, COUNTY OF RIVERSIDE, CALIFORNIA, MORE PARTICULARLY DESCRIBED AS FOLLOWS:

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D-9

BEGINNING AT THE NORTHWEST QUARTER OF SAID SECTION 17; THENCE N 894 53' 19" E ALONG THE NORTH LINE OF SAID SECTION 17 A DISTANCE OF 184.84 FEET; THENCE S 332 25' 33" E A DISTANCE OF 48.46 FEET; THENCE S 244 53' 21" E A DISTANCE OF 155.35 FEET; THENCE S 212 09' 29" E A DISTANCE OF 122.75 FEET; THENCE S 112 18' 08" W A DISTANCE OF 9.98 FEET TO THE BEGINNING OF A NONTANGENT CURVE; THENCE SOUTHWESTERLY AND NORTHWESTERLY ALONG A CURVE CONCAVE NORTHERLY HAVING A RADIUS OF 200.00 FEET THROUGH A CENTRAL ANGLE OF 252 14' 34" AN ARC LENGTH OF 88.11 FEET. (THE BEGINNING RADIAL BEARS S 044 25' 47" E); THENCE N 692 11' 13" W A DISTANCE OF 31.57 FEET; THENCE NORTHWESTERLY AND SOUTHWESTERLY ALONG A CURVE CONCAVE SOUTHERLY HAVING A RADIUS OF 125.00 FEET THROUGH A CENTRAL ANGLE OF 432 29' 47" AN ARC LENGTH OF 94.89 FEET; THENCE S 674 19' 00" W A DISTANCE OF 12.40 FEET; THENCE SOUTHWESTERLY ALONG A CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 600.00 FEET THROUGH A CENTRAL ANGLE OF 114 38' 51" AN ARC LENGTH OF 121.97 FEET; THENCE S 784 57' 51" W A DISTANCE OF 17.16 FEET; THENCE SOUTHWESTERLY ALONG A CURVE CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 100 .00 FEET THROUGH A CENTRAL ANGLE OF 94 45' 49" AN ARC LENGTH OF 17.04 FEET; THENCE S 692 12' 02" W A DISTANCE OF 60.68 FEET; THENCE SOUTHWESTERLY ALONG A CURVE CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 300.00 FEET THROUGH A CENTRAL ANGLE OF 152 25' 21" AN ARC LENGTH OF 80.75 FEET; THENCE S 534 46' 41" W A DISTANCE OF 9.73 FEET; THENCE SOUTHWESTERLY ALONG A CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 200.00 FEET THROUGH A CENTRAL ANGLE OF 214 30' 19" AN ARC LENGTH OF 75.07 FEET; THENCE S 752 17' 00" W A DISTANCE OF 11.70 FEET; THENCE SOUTHWESTERLY ALONG A CURVE CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 500.00 FEET THROUGH A CENTRAL ANGLE OF 74 44' 52" AN ARC LENGTH OF 67.61 FEET; THENCE S 672 32' 08" W A DISTANCE OF 61.04 FEET; THENCE N 844 05' 36" W A DISTANCE OF 97.01 FEET TO THE BEGINNING OF A NONTANGENT CURVE; THENCE SOUTHWESTERLY ALONG A CURVE CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 629.50 FEET THROUGH A CENTRAL ANGLE OF 42 53' 24" AN ARC LENGTH OF 53.73 FEET (THE BEGINNING RADIAL BEARS N 652 30' 26"W); THENCE S 192 36' 10" W A DISTANCE OF 198.88 FEET; THENCE SOUTHWESTERLY ALONG A CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 325.00 FEET THROUGH A CENTRAL ANGLE OF 282 26' 53" AN ARC LENGTH OF 161.37 FEET;

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D-10

THENCE S 482 03' 03" W A DISTANCE OF 210.22 FEET; THENCE SOUTHWESTERLY ALONG A CURVE CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 379.50 FEET THROUGH A CENTRAL ANGLE OF 232 22' 40" AN ARC LENGTH OF 154.84 FEET; THENCE S 242 40' 23" W A DISTANCE OF 240.30 FEET; THENCE N 652 19' 37" W A DISTANCE OF 41.00 FEET; THENCE N 242 40' 23" E A DISTANCE OF 240.30 FEET; THENCE NORTHEASTERLY ALONG A CURVE CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 420.50 FEET THROUGH A CENTRAL ANGLE OF 232 22' 40" AN ARC LENGTH OF 171.57 FEET; THENCE N 48' 03' 03" E A DISTANCE OF 210.22 FEET; THENCE NORTHEASTERLY ALONG A CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 284.00 THROUGH A CENTRAL ANGLE OF 282 26' 53" AN ARC LENGTH OF 141.01 FEET; THENCE N 192 36' 10" E A DISTANCE OF 198.88 FEET; THENCE NORTHEASTERLY ALONG A CURVE CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 670.50 FEET THROUGH A CENTRAL ANGLE OF 42 36' 43" AN ARC LENGTH OF 53.97 FEET (THE ENDING RADIAL BEARS N 652 47' 08" W); THENCE N 702 43' 36" W A DISTANCE OF 122.08 FEET; THENCE N 172 45' 36" W A DISTANCE OF 53.40 FEET TO THE BEGINNING OF A NONTANGENT CURVE; THENCE NORTHEASTERLY ALONG A CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 395.00 FEET THROUGH A CENTRAL ANGLE OF 432 31' 32" AN ARC LENGTH OF 300.07 FEET. (THE BEGINNING RADIAL BEARS S 342 09' 50" E); THENCE W 122 18' 38" E A DISTANCE OF 153.72 FEET; THENCE NORTHEASTERLY AND NORTHWESTERLY ALONG A CURVE CONCAVE WESTERLY HAVING A RADIUS OF 1,070.00 FEET THROUGH A CENTRAL ANGLE OF 262 49' 21" AN ARC LENGTH OF 500.91 FEET. (THE ENDING RADIAL BEARS N 752 29' 17" E); THENCE S 862 35' 16" W A DISTANCE OF 150.84 FEET; THENCE N 52 44' 17" E A DISTANCE OF 292.64 FEET; THENCE S 674 43' 58" E A DISTANCE OF 400.79 FEET; THENCE SOUTHEASTERLY ALONG A CURVE CONCAVE SOUTHWESTERLY HAVING A RADIUS OF 829.93 FEET THROUGH A CENTRAL ANGLE OF 172 17' 28" AN ARC LENGTH OF 250.46 FEET TO THE EAST LINE OF SAID SECTION 7. (THE ENDING RADIAL BEARS N 392 33' 30" E); THENCE S 002 04' 28" E ALONG THE EAST LINE OF SAID SECTION 7 A DISTANCE OF 529.57 FEET TO THE NORTHWEST CORNER OF SAID SECTION 17 AND THE POINT OF BEGINNING.

1 11110 111111 1111 1111111

11111 111111 111 1111111 11

1& 2

'1gftEDA

40596965.14

D-11

PARCEL 12: THE EAST HALF OF THE SOUTHWEST QUARTER OF SECTION 7, TOWNSHIP 5 SOUTH RANGE 8 EAST, SAN BERNARDINO BASE AND MERIDIAN; EXCEPTING THEREFROM THAT PORTION CONVEYED TO COACHELLA VALLEY COUNTY WATER DISTRICT, DEED RECORDED DECEMBER 12, 1947 IN BOOK 877 PAGE 338 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA.

1111111111111111111111111111111111111111111111111111111 10 2 T/3 107,Z90A
40596965.14

D-12

Exhibit E RELOCATION OF COMMON FACILITIES The access road will be located within the Participating Property, which property is described below. PARCEL 1: THE WEST HALF OF THE SOUTHEAST QUARTER OF SECTION 18, TOWNSHIP 5 SOUTH, RANGE 8 EAST, SAN BERNARDINO BASE AND MERIDIAN, ACCORDING TO THE OFFICIAL PLAT THEREOF. PARCEL 2: THE NORTH HALF OF THE EAST HALF OF THE SOUTHWEST QUARTER OF SECTION 18, TOWNSHIP 5 SOUTH, RANGE 8 EAST, SAN BERNARDINO BASE AND MERIDIAN, ACCORDING TO THE OFFICIAL PLAT THEREOF. PARCEL 2A: A NON-EXCLUSIVE EASEMENT FOR INGRESS AND EGRESS OVER THE EASTERLY 20 FEET OF THE SOUTH HALF OF THE EAST HALF OF THE SOUTHWEST QUARTER OF SECTION 18, TOWNSHIP 5 SOUTH, RANGE 8 EAST, SAN BERNARDINO BASE AND MERIDIAN, ACCORDING TO THE OFFICIAL PLAT THEREOF. PARCEL 3: THE SOUTHEAST QUARTER OF THE NORTHWEST QUARTER OF SECTION 18, TOWNSHIP 5 SOUTH, RANGE 8 EAST, SAN BERNARDINO BASE AND MERIDIAN, ACCORDING TO THE OFFICIAL PLAT THEREOF, EXCEPTING THEREFROM THAT PORTION THEREOF LYING NORTHERLY OF THE FOLLOWING DESCRIBED LINE: COMMENCING AT THE NORTHEAST CORNER OF THE SOUTH HALF OF SAID NORTHEAST QUARTER OF SECTION 18; THENCE WESTERLY A DISTANCE OF 550.00 FEET ALONG THE NORTHERLY BOUNDARY OF SAID SOUTH HALF OF THE NORTHWEST QUARTER OF SAID SECTION 18, TO THE TRUE POINT OF BEGINNING OF THE LINE TO BE DESCRIBED; THENCE SOUTHEASTERLY ON A LINE PARALLEL WITH THE SOUTHWESTERLY BOUNDARY LINE OF THE ALL AMERICAN CANAL RIGHT (S) OF WAY 300.00 FEET WIDE, SHOWN AS PAR. C-6A-408 ON THE U.S. GOVERNMENT LAND MAP DATED MAY 3, 1946, SAID RIGHT (S) OF WAY IS ALSO REFERRED TO IN THAT CERTAIN DEED RECORDED JULY 22, 1949 IN BOOK 1096 PAGE 103 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA, TO A POINT IN THE EASTERLY BOUNDARY OF SAID NORTHWEST QUARTER OF

40596965.14

E1

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1

2%3-864982 0!31 /2003 Eie 008
87 of 90

SECTION 18, SAID POINT BEING THE EASTERLY TERMINUS OF SAID LINE BEING DESCRIBED. PARCEL 4: THE SOUTHWEST QUARTER OF THE NORTHWEST QUARTER OF SECTION 18, TOWNSHIP 5 SOUTH, RANGE 8 EAST, SAN BERNARDINO BASE AND MERIDIAN, ACCORDING TO THE OFFICIAL PLAT THEREOF, EXCEPTING THEREFROM THE WESTERLY 30 FEET THEREOF.

i111111
40596965.14

1111 111111 1111 11111 1E1111 1111111 1111 E-2

2603-864982 10/31/2003 88
88 of 90

Exhibit F PROPOSED FIRST YEAR BUDGET
Landmark Golf Club Indio, California Initial Budget for Common Area Maintenance Total Total Monthly Annual 100 Fixed Costs 102 Corporation Franchise Taxes 103 Insurance 100-Subtotal 200 Operating Costs 201 Electricity 203 Water 208 Landscape (s.f. x rate) 400,000 $ 0.35 Landscape Extras 211 Private Streets, Driveways Parking Areas 216 Reserve Study 217 Miscellaneous Minor Repairs Pest Control Other: Lighting Maintenance 200-Subtotal 300 Reserves 301-31' See worksheet attached 300-Subtotal 400 Administration 401 Management 402 Legal Services 403 Accounting 404 Education 405 Miscellaneous, office expense 400-Subtotal Total (100-400) 500 Contingency 501 New Construction 3% TOTAL BUDGET 2 $ 375 377 25 4,500 4,525 Golf Parcel 1 Parcel 2 Parcel 3 Parcel 4 Course 20% 17% 17% 35% 11% $ 9 $ 3 $ 495 1,575 498 1,584 4 $ 765 769 4 $ 765 769 5 900 905

392 1,445 11,667 1,167 195 67 500 300 250 15,982 3,488 3,488 2,333 250 100 15 500 3,198 23,045 691

4,699 17,340 140,000 14,000 2,342 800 6,000 3,600 3,000 191,781 41,850 41,850 28,000 3,000 1,200 180 6,000 38,380 276,536 8,296

517 1,907 15,400 1,540 258 88 660 396 330 21,096 4,604 4,604 3,080 330 132 20 660 4,222 30,419 913

1,645 6,069 49,000 4,900 820 280 2,100 1,260 1,050 67,123 14,648 14,648 9,800 1,050 420 63 2,100 13,433 96,788 2,904

799 2,948 23,800 2,380 398 136 1,020 612 510 32,603 7,115 7,115 4,760 510 204 31 1,020 6,525 47,011 1,410

799 2,948 23,800 2,380 398 136 1,020 612 510 32,603 7,115 7,115 4,760 510 204 31 1,020 6,525 47,011 1,410

940 3,468 28,000 2,800 468 160 1,200 720 600 38,356 8,370 8,370 5,600 600 240 36 1,200 7,676 55,307 1,659

$23,736 $284,832

$31,332 $99,691 $48,421 $48,421 $ 56,966

This budget is an estimate based on Operator's knowledge and expertise. The 2005 budget will be adjusted to reflect actual common expenditures incurred in 2004 that are applicable to the Common Areas and Common Facilities as defined in the CO3cR's. Operator will work within each year's budgetary constraints. Any surplus of revenues over expenditures for a given year will be applied as a credit to the following year. Unaffiliated third parties will provide maintenance services based on competative market bidding.

111111 111111 1111 1111111 1111 11111 111111 111 lit 11 1111

20&1911 ig 4 f; 2'10t

40596965.14

F-1

ILLEGIBLE NOTARY SEAL DECLARATION
(GOVERNMENT CODE 27361.7)

I certify under penalty of perjury that the notary seal on the document to which this statement is attached reads as follows: Name of Notary Commission No.
o( p...(Apo g t133 oc4
2.0000

Date Commission Expires

Date and Place of Notary Execution
it) e44.)

rol/q/63
1 v-f /0/3/43
-ti) eeStd-0 g

Date and Place of This Declaration

g/ljetA-vtl ignature

Firm Name ( if any)
REC-91-000008 (7/94)
111111111111111011111111111011111111 I F) Y361(1/31°78
: I %R