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Home My WebLink AboutContracts & Agreements_185-2005AGREEMENT FOR PURCHASE AND SALE AND ESCROW INSTRUCTIONS THIS AGREEMENT FOR PURCHASE AND SALE AND ESCROW INSTRUCTIONS ("Agreement"), dated October 4, 2005 ("Effective Date"), is made and entered into by and between the City of Redlands, a municipal corporation ("Buyer"), and Tony Louka and Brenda Evans-Louka ("Sellers") who are sometimes individually referred to herein as a "Party," and collectively, as the "Parties " RECITALS A Whereas, Sellers own certain real property located at 306 Edgemont Drive in the City ofRedlands which is designated as County of S an Bernardino Assessor's Parcel Number 0294-161-08 (the"Property") and B Whereas, Sellers agree to sell to Buyer and Buyer agrees to purchase from Sellers an exclusive easement (the "Easement") for public access and utilities in, over and under the northeast portion of the Property, subject to the terms and conditions contained herein, and as further described in Exhibit "A" and shown on the map in Exhibit "B of the attached Easement deed," NOW THEREFORE, in consideration of the mutual promises contained herein, the Parties agree as follows AGREEMENT 1 PURCHASE PRICE The total price for the Easement to be paid at Close of Escrow shall be Six Thousand ($6,000 00) Dollars (the "Purchase Price") 2 TITLE TO PROPERTY Sellers shall, at Close of Escrow, by grant of the Easement document in the form attached hereto, convey the Easement to Buyer free and clear of any existing hens or encumbrances upon the title of the Property, as evidence by a standard form C L T A standard coverage policy of title insurance in an amount equal to the Purchase Price of the Easement issued by Commonwealth Land Title Company (the "Title Company") showing title vested in Buyer, subject to the exceptions to title approved by Buyer pursuant to Section 3 1 below Revised _Purchase and Sale.Lauka.wpd 1 3. CONDITIONS OF PURCHASE Buyer's obligation to purchase the Easement shall be subject to the satisfaction of the following conditions, which are for Buyer's benefit only In the event any of the following contingencies are not satisfied within the specified time limits, Buyer may, at its sole option, either waive such conditions or terminate this Agreement 3 1 Approval of Title Promptly after execution of this Agreement by Sellers and Buyer, Escrow Holder shall deliver to Buyer a current preliminary title report ("PTR"), including documents referred to therein, covering the Property and the Easement from the Title Company Buyer shall have ten (10) business days after the date of Title Company's provision of the PTR to Buyer to approve or disapprove the status of title to the Property and the Easement as disclosed in the PTR and related documents Any disapproval of status of title shall be within the reasonable discretion of Buyer and shall be limited to monetary encumbrances and covenants, conditions, restrictions and easements of record which adversely affect the Buyer's intended use of the Easement Any exception not disapproved in writing within the ten (10) business day period shall be deemed approved by Buyer, and shall constitute a permitted exception hereunder Any objection to a title exception by Buyer shall be made in writing to Sellers, and Sellers shall thereafter have five (5) business days within which to use reasonable efforts to cure or to provide assurance of the cure of the title defect and cause such item to be removed from the title policy to be issued at Close of Escrow The term "reasonable efforts," as used in this Paragraph 3 1, shall not include any obligation of Sellers to expend any money or commence any legal action to correct any exceptions within the three (3) day period Sellers shall notify Buyer, in writing, of any disapproved title exceptions which Sellers are unable to cause to be removed prior to or at Close of Escrow Buyer shall, within five (5) business days thereafter, elect by giving written notice to Sellers and Escrow Holder (i) to terminate this Agreement, or (u) to waive its disapproval of such exceptions, in which case such exceptions shall then be deemed to be permitted exceptions Buyer's failure to give such notice shall be deemed an election to terminate this Agreement In the event Buyer elects to terminate this Agreement, the Parties shall be relieved from any further liabilities and obligations under this Agreement 3 2 Inspections With the prior written consent of Sellers, which consent shall not be unreasonably withheld, Buyer shall have the right to physically inspect and perform tests, including environmental investigations, zoning and economic feasibility and suitability studies (hereinafter collectively "Inspections") on the Property as Buyer deems necessary All Inspections shall be done at Buyer's sole cost and expense Within ten (10) days of the completion of such Inspections, the Property shall be returned to its original condition Buyer shall have the right, in the exercise of its good faith discretion, to approve or disapprove of the condition of the Property and the Easement as disclosed in such Inspections within thirty (3 0) days from the opening of escrow Any disapproval of the condition of the Property and the Easement shall be in writing and given to Sellers within such thirty(30) day period In the event Buyer does not disapprove the condition of the Property and the Easement within the thirty (3 0) day period, this condition shall be deemed waived In the event Buyer disapproves the condition of the Property and the Easement within the thirty (30) day period, this Revised_Purchase -,nd Sale.Louka.wpd 2 Agreement shall terminate and the Parties shall be relieved from any further liabilities and obligations under this Agreement 4. ESCROW 4 1 Opening The purchase and sale of the Property shall be completed through an escrow ("Escrow") to be opened at Guardian Escrow (the "Escrow Holder") Within five (5) days after the Sellers' execution of this Agreement, Sellers shall deposit with the Escrow Holder one fully executed counterpart of this Agreement, which shall constitute the Purchase Agreement and Escrow Instructions along with any additional escrow instructions executed by the Parties pursuant to Section 4 4 of this Agreement The date of delivery to Escrow Holder of such fully executed counterpart shall be deemed the opening of escrow ("Opening of Escrow") and Escrow Holder shall notify Buyer and Sellers in writing of the Opening of Escrow date, the date set for Close of Escrow, and its acceptance of the escrow instructions 4 2 Closing Escrow shall close, if at all, on or before November 30, 2005 4 3 Costs. Except as otherwise expressly provided for herein, Buyer shall pay Escrow fee and all of any such other costs and charges normally paid in an escrow closing in San Bernardino County Buyer shall also pay the fees to record the Easement deed 4 4 Additional Documents. Buyer and Sellers shall execute such additional Escrow instructions as Escrow Holder may reasonably require to act as Escrow Holder, but in no event shall the Escrow instructions increase the rights of one party against the other party hereto or modify the terms and conditions of this Agreement 4 5 Delivery of Documents Escrow Holder shall prepare the Easement Deed and Buyer shall deliver the total Purchase Price to Escrow Holder at least one (1) business day prior to the Close of Escrow 5. SELLERS' REPRESENTATIONS, WARRANTIES AND ACKNOWLEDGMENTS Sellers hereby make the following representations, warranties and acknowledgments and agrees that such representations, warranties and acknowledgments shall survive the Close ofEscrow 5 1 Sellers have full right, power, and authority to execute this Agreement and to convey title to the Easement to Buyer as provided herein 5 2 Sellers are not foreign persons under Section 1445 Internal Revenue Code and will execute a Certificate of Non -foreign status and deposit the same into the Escrow prior to Close of Escrow Remed_Purchase and Sake.Louka.wpd 3 5 3 This Agreement has been duly approved and executed by Sellers and constitutes the valid and binding Agreement of Sellers enforceable against Sellers in accordance with its terms 6 BUYER'S REPRESENTATIONS AND WARRANTIES Buyer hereby makes the following representations, warranties and acknowledgments and agrees that such representations, warranties and acknowledgments shall survive Close of Escrow 6 1 Buyer hereby represents and warrants that the person executing this Agreement has the full authority and power to enter into this Agreement on behalf ofBuyer to purchase the Property from Sellers, and to take all actions required of it by the terms of this Agreement 6 2 All the documents executed by Buyer which are to be delivered to Sellers at Close of Escrow shall be duly authorized, executed and delivered by Buyer and shall be legal, valid and binding obligations ofBuyer enforceable against Buyer in accordance with their respective terms, and shall not violate any agreement to which Buyer is a party or to which it is subject 6 3 That (i) prior to Close of Escrow, Buyer will have had the opportunity to investigate all physical, land use and economic aspects of the Property and to make all inspections and investigations of the Property which Buyer deems necessary or desirable to protect its interest in acquiring the Property, including, without limitation, environmental audits and assessments, toxic reports, surveys, investigation of land use and development rights, development restrictions and conditions that are or may be imposed by governmental agencies, soils and geological reports, engineering and structural tests, insurance contracts, cost to complete studies, governmental agreements and approvals, and (u) Sellers, nor anyone acting for or in behalf of Sellers, has made any representation, warranty, promise or statement, express or implied, to Buyer, or to anyone acting for or on behalf of Buyer, concerning the Property or the use thereof Buyer further represents and warrants that all matters concerning the Property have been or shall be independently verified by Buyer prior to Close of Escrow, and that Buyer shall purchase the Property on Buyer's own prior investigations and examination of the Property (or Buyer's election not to do so), 7 SELLER'S ACKNOWLEDGMENT OF FULL BENEFITS AND RELEASE A 13y execution ofthis Agreement, Sellers, in behalf ofthemselves, their heirs, executors, administrators, successors and assigns, hereby acknowledge that this Agreement provides full payment for the acquisition of the Easement by Buyer, and Sellers hereby expressly and unconditionally waive any claims for damages, relocation assistance benefits, severance damages, interest, loss ofgoodwill, claims for inverse condemnation or unreasonable precondemnation conduct, or any other compensation or benefits other than as already expressly provided for in this Agreement, it being understood that this is a complete and full settlement of all acquisition claims, liabilities and benefits of any type or nature whatsoever relating to, or in connection with, Buyer's acquisition of the Easement Ctevssed_Purchasc and Salc.Louka.wpd 4 B This Agreement arose out of Buyer's efforts to acquire the Easement through its municipal authority Sellers, in behalfofthemselves, their heirs, executors, administrators, successors and assigns, hereby fully release Buyer, its successors, agents, representatives (including attorneys), and assigns, from all claims and causes of action by reason of any damage which has been sustained, or may be sustained, arising out of or related to Buyer's efforts to acquire the Easement Sellers hereby acknowledge that they have been advised by their attorneys concerning, and that Sellers are familiar with, the provisions of California Civil Code section 1542 which provides as follows "A general release does not extend to claims which the Creditor does not know or suspect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor " Sellers acknowledge that they may have sustained damage, loss, costs or expenses which are presently unknown and unsuspected, and such damage, loss, costs or expenses which may have been sustained, may give rise to additional damage, loss, costs or expenses in the future Nevertheless, Sellers hereby acknowledge that this Agreement has been negotiated and agreed upon in fight of that situation, and hereby expressly waive any and all rights which they may have under California Civil code section 1542, or under any statute or common law or equitable principal of similar effect This acknowledgment and release shall survive the Close of Escrow 8. NOTICE Unless otherwise provided herein, any notice, tender, or delivery to be given hereunder by either Party to the other may be effected by personal delivery in writing or by registered or certified mail, postage prepaid, return receipt requested, and shall be deemed communicated upon delivery or as of mailing Mailed notices shall be addressed as set forth below, but each Party may change its address by written notice in accordance with this Section Sellers Tony Louka and Brenda Evans-Louka 306 Edgemont Drive Redlands, CA 92373 9 GENERAL PROVISIONS Buyer City Manager City of Redlands PO Box 3005 Redlands, CA 92373 9 1 Entire Agreement. This Agreement supersedes any and all prior oral or written agreements between the parties hereto relating to the purchase and sale of the Property and contains Reviscd_Purchase and Sakc.Louka.wpd 5 the entire agreement of the Parties as to the matters covered hereby No other agreement, statement or promise made by any Party or to any employee, officer or agent of any Party to this Agreement shall be binding, except a subsequent amendment to this Agreement, in writing, executed by the Parties All obligations of Buyer and Sellers under this Agreement and the Escrow shall be joint and several 9 2 Time is of the Essence Time is of the essence of this Agreement and the Escrow referred to herein 9 3 Buyer's Performance Close of Escrow and performance of any duty imposed on Buyer by this Agreement is conditioned on Sellers' full performance of all duties imposed on Sellers in this Agreement 9 4 Sellers' Performance. Close of Escrow and performance of any duty imposed on Sellers by this Agreement is conditioned on Buyer's full performance of all duties imposed on Buyer in this Agreement 9 5 Counterparts. This Agreement may be executed in any number of counterparts each of which shall be deemed an original, but all of which, when taken together, shall constitute one and the same instrument 9 6 Successors and Assigns This Agreement shall inure to the benefit of and be binding on the Parties to this Agreement, their respective heirs, assigns and other successors in interest, however, no such assignment shall release or relieve Buyer from any obligations or liabilities under this Agreement 9 7 Attorneys' Fees In the event any action is commenced to enforce or interpret the terms or conditions of this Agreement the prevailing Party shall, in addition to any costs or other relief, be entitled to recover its reasonable attorneys' fees, including fees for in-house counsel of the Parties at rates prevailing in San Bernardino County, California 98 the Parties 11 11 1/ 11 1/ II 11 11 11 11 Amendment. Any amendment to this Agreement shall be in writing and executed by Revised_Purehase and Sale.Louka wpd 6 IN WITNESS WHEREOF, the Parties hereto executed this Agreement on the dates set forth opposite their respective signatures hereto SELLERS By Tony Louka Executed this O day of at Redlands, California By Executed this day of Brenda Evans-Louka BUYER CITY OF REDLANDS By at Redlands, California Cl 2005 2005 Executed this 4th day of October , 2005 Susan jeppler, Mayor I r at Redlands, California ATTEST Revised_purchase and Sa]e.Louka.wpd 7 RECORDING REQUESTED BY. COMMUNITY DEVELOPMENT DEPARTMENT CITY OF REDLANDS WHEN RECORDED, RETURN TO CITY CLERK'S OFFICE CITY OF REDLANDS P 0 BOX 3005 REDLANDS CA 92373 (THIS SPACE FOR RECORDERS USE ONLY) EASEMENT DEED FOR ROADWAY AND UTILITIES PURPOSES For valuable consideration, receipt of which is hereby acknowledged Tony Louka and Brenda Evans-Louka, husband and wife as joint tenants, hereby grant to the City of Redlands, a municipal corporation and political subdivision of the State of California, and its successors and assigns ("City") (1) an irrevocable, exclusive, permanent and perpetual easement, together with the right to forever maintain, operate, improve, alter, relocate, reconstruct, inspect, repair, occupy and use and otherwise install necessary or convenient appurtances therefor, for the construction and maintenance of public and private above ground and underground utility facilities as determined reasonable or necessary by the City, together with all rights of ingress and egress, and (2) an irrevocable, exclusive, permanent and perpetual easement, together with the right to construct, operate, maintain, replace and renew a street and roadway, and otherwise install necessary or convenient appurtances therefor, for street and roadway purposes, including ingress and egress for vehicular and/or pedestrian and other traffic, in, over and under that certain real property ("Easement Area") described on Exhibit "A" and shown on Exhibit "B" attached hereto Executed on October , 2005 By Tony Louka Brenda Evans-Louka 09-07-2005 04.37pm From—KRUEPER ENGINEERING + T-372 P 002/002 F-093 Exhibit "A" A PORTION OF THE WEST ONE-HALF OF THE NORTHEAST ONE-QUARTER OF THE NORTHEAST ONE-QUARTER OF SECTION 11, TOWNSHIP 2 SOUTH, RANGE 3 WEST, SAN BERNARDINO MERIDIAN, IN THE CITY OF REDLANDS, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHEAST CORNER OF SAID WEST ONE-HALF OF THE NORTHEAST ONE-QUARTER OF THE NORTHEAST ONE-QUARTER OF SECTION 11, SAID CORNER ALSO BEING THE NORTHWESTERLY CORNER OF PARCEL MAP NO 8226, AS PER PARCEL MAP BOOK 91, PAGES 25 AND 26, RECORDS OF SAID COUNTY, THENCE ALONG THE EAST LINE OF SAID WEST ONE-HALF SOUTH 0°22'28" EAST 11 51 FEET TO THE TRUE POINT OF BEGINNING SAID EAST LINE ALSO BEING THE WEST PARCEL BOUNDARY OF SAID PARCEL MAP NO 8226, THENCE CONTINUING ALONG SAID EAST LINE SOUTH 0°22'28" EAST 57 41 FEET TO THE SOUTHWEST CORNER OF SAID PARCEL MAP NO 8226, THENCE ON A LINE PERPENDICULAR TO SAID EAST LINE SOUTH 89°37'32" WEST 21 83 FEET TO THE EASTERLY RIGHT-OF-WAY OF EDGEMONT DRIVE, 50 FEET WIDE, AS SHOWN ON AMENDED TRACT NO 13103, RECORDED IN MAP BOOK 225, PAGES 69-72, RECORDS OF SAN BERNARDINO COUNTY, THENCE ALONG SAID EASTERLY RIGHT-OF-WAY NORTH 01°19'42" EAST 57.44 FEET, THENCE NORTH 89°37'32" EAST 2012, MORE OR LESS, TO THE TRUE POINT OF BEGINNING DESCRIBED AREA CONTAINS 1,204 SQUARE FEET CARSON L STORER, P.L.S. EXPIRATION DATE JUNE 30, 2006 Scale: 1" = 10' Edgemont Dr. East Right -Of -Way of Edgemont Drive Lot 8 MB 225 Pg. 69-72 4 N 1°19'42"E in Exhibit "B" N 89°37'32"E 20.12 Area of Description 21.83 kr; 14 vim I P.O.C. N.E. Corner of west one-half of the N.E. one-quarter of the Northeast one-quarter of sec. 11, T2S, R3W, SBBM Parcel Map 8226 PMB 91/25-26 Parcel 4 T.P.O.B. S 89°37'32"W dge� 44, Z44, e Basis of bearing being the west line of Parcel 4 Parcel Map 8226 PMB 91/25 being S 0°22'28"E. SW Corner Parcel Map 8226 4 t1 . teise sr ee A .. . CERTIFICATE OF ACCEPTANCE This is to certify that the interest in real property conveyed to the City of Redlands, a Municipal Corporation, dated October , 2005, from Tony Louka and Brenda Evans-Louka is hereby accepted and the City consents to recordation thereof by its duly authorized officer Dated October , 2005 City Manager City of Redlands STATE OF CALIFORNIA COUNTY OF NOTARY ACKNOWLEDGEMENT ) ) ss ) On this day of , 2005, 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 satisfactory evidence to be the persons whose names are subscribed to the within instrument and acknowledged to me that they executed the same in their authorized capacities, and that by their signatures on the instrument the persons, or the entity upon behalf of which the persons acted, executed the instrument WITNESS my hand and official seal Notary Public in and for Said State Guardian Escrow, Inc 101 East Redlands Blvd , Suite 180 Redlands, CA 92373 (909) 793 3147 FAX (909)798 4606 CITY OF REDLANDS Date November 2, 2005 Attention City Manager Escrow No 21802 -JB P 0 Box 3005 Redlands, CA 92373 RE , Redlands, CA 92373 Dear Ladies and Gentlemen Thank you for selecting Guardian Escrow, Inc , to process your escrow The enclosed items are required in your escrow and are forwarded for your review P-ovid'ng, of course, these items met with your approval Sign and Return. Escrow Instructions Notice and Disclosure Notice to Buyers and Sellers Guardian Escrow, Inc 's Privacy Policy Copy of Easement Deed for approval as to content and form Copy of Preliminary Report for approval Complete in full, sign and return. Preliminary Change of Ownership Report Please Furnish the Following. Certificate of Acceptance Your prompt response will be appreciated All documents should be signed EXACTLY as your name(s) appear Should your name(s) be misspelled, sign them correctly and advise us in writing when you return these papers We appreciate the opportunity to be of service to you in this transaction Please do not hesitate to call should you have any questions Guardian Escrow Inc jb LandAmerica MI Commonwealth Commonwealth Land Title Company 275 W Hospitality Lane Suite 200 San Bernardino, CA 92408 Phone (909) 888-7541 Guardian Escrow 101 East Redlands Blvd #180 Redlands, CA 92373 Our File No 02121604 - 92 Title Officer Richard Knowlton e-mail rknowlton@landam com Phone (909) 888-7541, ext 5955 Fax (909) 885-2465 Attn Jeri Your Reference No 21802 -JB Property Address 306 Edgemont Drive, Redlands, California PRELIMINARY REPORT Dated as of October 13, 2005 at 7°30 a.m. In response to the above referenced application for a policy of title insurance, Commonwealth Land Title Company hereby reports that it is prepared to issue, or cause to be issued, as of the date hereof, a Policy or Policies of Title Insurance describing the land and the estate or interest therein hereinafter set forth, insuring against Toss which may be sustained by reason of any defect, lien or encumbrance not shown or referred to as an Exception below or not excluded from coverage pursuant to the printed Schedules, Conditions and Stipulations of said policy forms The printed Exceptions and Exclusion from the coverage and Limitations on Covered Risks of said Policy or Policies are set forth in Exhibit B attached Limitations on Covered Risks applicable to the CLTA and ALTA Homeowner's Policies of Title Insurance which establish a Deductible Amount and a Maximum Dollar Limit of Liability for certain coverages are also set forth in Exhibit B. Copies of the Policy forms should be read They are available from the office which issued this report. Please read the exceptions shown or referred to below and the exceptions and exclusions set forth in Exhibit B of this report carefully The exceptions and exclusions are meant to provide you with notice of matters which are not covered under the terms of the title insurance policy and should be carefully considered It is important to note that this preliminary report is not a written representation as to the condition of title and may not list all liens, defects, and encumbrances affecting title to the land This report (and any supplements or amendments hereto) is issued solely for the purpose of facilitating the issuance of a policy of title insurance and no liability is assumed hereby If it is desired that liability be assumed prior to the issuance of a policy of title insurance, a Binder or Commitment should be requested CLTA Preliminary Report (Revised 11-17-04) APPROVED CITY OF REDLANDS, anicipal corporation By. SITS PEPPLER, Mayo Page 1 Attest._-,-'-'� Lorfie Poyzr ity Clerk File No 02121604 SCHEDULE A The form of policy of title insurance contemplated by this report is CLTA Homeowner's Policy of Title Insurance ALTA Loan 1992 The estate or interest in the land hereinafter described or referred to covered by this report is A FEE Title to said estate or interest at the date hereof is vested in Tony Louay Louka and Brenda Evans Louka, husband and wife as point tenants The land referred to herein is situated in the County of San Bernardino, State of California, and is described as follows SEE EXHIBIT "A" ATTACHED HERETO AND MADE A PART HEREOF Page 2 File No 02121604 EXHIBIT "A" All that certain real property situated in the County of San Bernardino, State of California, described as follows Lot 8 of Tract No. 13103, in the City of Redlands, County of San Bernardino, State of California, as per Map recorded in Book 223 of Maps, Pages 58 through 61 inclusive, Records of said County, and amended September 19, 1989 in Book 225 of Maps, Pages 69 to 72 inclusive, Records of said County. EXCEPT THEREFROM all oil, gas, minerals, and other hydrocarbon substances lying below the surface of said land, but with no right of surface entry, as provided in Deeds of Record. Page 3 File No 02121604 SCHEDULE B At the date hereof Exceptions to coverage in addition to the printed exceptions and exclusions in said policy form would be as follows A. Property taxes, including general and special taxes, personal property taxes, if any, and any assessments collected with taxes, for the fiscal year 2005 - 2006 1st Installment• 2nd Installment Penalty (including cost) Exemption Code Area Assessment No $3,144 10 (Paid) This amount is valid until December 10, after which penalties apply $3,144.07 (Open) This amount is valid until April 10, after which penalties apply $324 41 Due with installment amount if paid after April 10 $7,000 00 005023 0294-161-08-0-000 B Supplemental or escaped assessments of property taxes, if any, assessed pursuant Revenue and Taxation Code of the State of California An easement document Granted to Purpose: Recorded Affects 2 An easement document Granted to Purpose. Recorded. Affects to the for the purpose shown below and rights incidental thereto as set forth in a the City of Redlands, a Municipal Corporation water pipe lines October 1, 1947 in Book 2126, Page 139 of Official Records said land more particularly described therein. for the purpose shown below and rights incidental thereto as set forth in a George Henry Ide and Harold G Stein roadways and water lines November 13, 1948 in Book 2320, Page 299 of Official Records said land more particularly described therein 3 The fact that by Resolution of the Board of Supervisors of the County of San Bernardino, State of California, Resolution No 4112 dated October 17, 1985 and recorded on October 23, 1985 as Instrument No 85-263030 of Official Records Annexation to the City of Redlands was approved Reference is made to said document for full particulars. Page 4 File No 02121604 4 An easement for the purpose shown below and rights incidental thereto as set forth in document Granted to Southern California Edison Company, a Corporation Purpose Public utilities Recorded December 1, 1989 as Instrument No 89-454296 of Official Records Affects Said easement is described as follows. Various strips of land 6.00 feet in width, lying within all those lots bounded on one or more sides by roads or highways, a sideline of each of said strips shall in all cases be coincidental with the right of way line of said roads and highways Also, various strips of land 4 00 feet in width, lying on each side of all side lot lines of said lots Restrictions on the use, by the owners of said land, of the easement area as set out in the easement document shown above 5 Covenants, conditions and restrictions as set forth in the document Recorded February 13, 1990 as Instrument No 90-58566 of Official Records This exception omits any covenant, condition or restriction based on race, color, religion, sex, handicap, familial status or national origin, unless and only to the extent that the covenant, condition or restriction (a) is not in violation of state or federal law, (b) is exempt under 42 U 5 C Section 3607 or (c) relates to a handicap but does not discriminate against handicapped people Said covenants, conditions and restrictions provide that a violation thereof shall not defeat the lien of any mortgage or deed of trust made in good faith and for value Among other things, said document provides for Easements over a portion of said land for the purpose therein shown, and rights incidental thereto 6 An easement for the purposes shown below and rights incidental thereto as shown or as offered for dedication on the recorded map of said tract Purpose right of way for Edgemont Drive Affects as shown on Map of said Tract 7 A deed of trust to secure an indebtedness in the amount shown below, and any other obligations secured thereby Amount $537,000.00 Dated April 23, 2003 Trustor Tony L Louisa and Brenda Evans-Louka, husband and wife as joint tenants Trustee CTC Real Estate Services Beneficiary Countrywide Home Loans, Inc , a New York Corporation Recorded April 30, 2003 as Instrument No 2003-0285476 of Official Records Page 5 File No 02121604 An assignment of the beneficial interest under said deed of trust which names As Assignee CitiMortgage, Inc Recorded May 1, 2003 as Instrument No 2003-0288001 of Official Records END OF SCHEDULE B EXCEPTIONS PLEASE REFER TO THE "NOTES AND REQUIREMENTS SECTION" WHICH FOLLOWS FOR INFORMATION NECESSARY TO COMPLETE THIS TRANSACTION Page 6 File No 02121604 REQUIREMENTS SECTION: REQ NO 1 The Company will require a statement of information from the parties named below in order to complete this report, based on the effect of documents, proceedings, liens, decrees, or other matters which do not specifically describe said land, but which, if any do exist, may affect the title or impose liens or encumbrances thereon. Parties Buyers/Sellers Page 7 File No 02121604 INFORMATIONAL NOTES SECTION NOTE NO 1 Privacy notice (15 U S C 6801 and 16 CFR part 313)• We collect nonpublic personal information about you from information you provide on forms and documents and from other people such as your lender, real estate agent, attorney, escrow, etc We do not disclose any nonpublic personal information about our customers or former customers to anyone, except as permitted by law We restrict access to nonpublic personal information about you to those employees who need to know that information in order to provide products or services to you We maintain physical, electronic and procedural safeguards that comply with federal regulations to guard your nonpublic personal information NOTE NO 2 The information on the attached plat is provided for your convenience as a guide to the general location of the subject property The accuracy of this plat is not guaranteed, nor is it a part of any policy, report or guarantee to which it may be attached NOTE NO 3• California insurance code section 12413 1 regulates the disbursement of escrow and sub -escrow funds by title companies The law requires that funds be deposited in the title company escrow account and available for withdrawal prior to disbursement Funds deposited with the company by wire transfer may be disbursed upon receipt Funds deposited with the company via cashier's check or teller's check drawn on a California based bank may be disbursed on the next business day after the day of deposit If funds are deposited with the company by other methods, recording and/or disbursement may be delayed All escrow and sub -escrow funds received by the company will be deposited with other escrow funds in one or more non-interest bearing escrow accounts of the company in a financial institution selected by the company The company may receive certain direct or indirect benefits from the financial institution by reason of the deposit of such funds or the maintenance of such accounts with such financial institution, and the company shall have no obligation to account to the depositing party in any manner for the value of, or to pay to such party, any benefit received by the company Those benefits may include, without limitation, credits allowed by such financial institution on loans to the company or its parent company and earnings on investments made with the proceeds of such loans, accounting, reporting and other services and products of such financial institution Such benefits shall be deemed additional compensation of the company for its services in connection with the escrow or sub -escrow WIRING INSTRUCTIONS FOR THIS OFFICE ARE' Union Bank of California 1980 Saturn Street Monterey Park, CA 91755 Phone; (800) 218-6466 ABA #122-000-496 Credit To. Commonwealth Land Title Company - Inland Empire Account#9100194640 RE• 02121604 810 - RK4 - PLEASE INDICATE COMMONWEALTH LAND TITLE COMPANY ESCROW OR TITLE ORDER NUMBER Page 8 Pile No 02121604 NOTE NO 4 The charges which the company will make for next day messenger services (i.e. Federal Express, UPS, DHL, Airborne, Express mail, etc) Are $15 00 per letter, standard overnight service, and $25.00 for larger size packages and/or priority delivery services Such charges include the cost of such messenger service and the company's expenses for arranging such messenger service and its overhead and profit Special messenger services will be billed at the cost of such services There will be no additional charge for pick-up or delivery of packages via the company's regularly scheduled messenger runs NOTE NO 5 The charge for a policy of title insurance, when issued through this title order, will be based on the Short Term Rate NOTE NO 6 None of the items shown in this report will cause the Company to decline to attach CLTA Endorsement Form 100 to an ALTA Loan Policy, when issued NOTE NO 7 The following information will be included in the CLTA Form 116 Endorsement to be issued pursuant to this order There is located on said land, A single family residence Known as• 306 Edgemont Drive, Redlands, California NOTE NO 8 There are no conveyances affecting said land recorded within 24 months of the date of this report NOTE NO 9 THIS COMPANY REQUIRES CURRENT BENEFICIARY DEMANDS PRIOR TO CLOSING If the demand is expired and a current demand cannot be obtained, our requirements will be as follows: (a) If this Company accepts a verbal update on the demand, we may hold an amount equal to one monthly mortgage payment. This hold will be in addition to the verbal hold the lender may have stipulated (b) If this Company cannot obtain a verbal update on the demand, we will either pay off the expired demand, or wait for the amended demand, at our discretion. (c) All payoff figures are verified at closing If the customer's last payment was made within 15 days of closing, our Payoff Department may hold one month's payment to insure check has cleared the bank (unless a copy of the cancelled check is provided, in which case there will be no hold). Typist kt4 Date Typed October 21, 2005 Page 9 Exhibit 13 (Rev 1147-04) CALIFORNIA LAND TITLE ASSOCIATION STANDARD COVERAGE POLICY -1990 EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, anorneys' fns or expenses which arise by reason of I (a) Any law ordinance or governmental regulation (including but not bmited to buddmg or zoning laws, ordinances, or regulations) restricting regulating prohibiting or relatmg to (i) the occupancy, use or enjoyment of the land (ii) the character dimensions or Location of any improvement now or hereafter erected on the land (iii) a separation in ownership or a change in the dunensions or area of the land or any parcel of which the land m or was a part or (w) environmental protection, or the effect of any violation of these laws ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, Gen, or encumbrance resulting from a violation or alleged violation affecting the land bas been recorded in the public records at Date of Policy (b) Any governmental police power not excluded by (a) above, except to the anent that a notice of the exercise thereof or notice of a defect, lien or encumbrance resultmg from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy 2 Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy but not excluding from coverage any taking which has occurred pnor to Date of Policy which would be binding on the nghts of a purchaser for value without knowledge 3 Defects hens, encumbrances adverse claims or other matters (a) whether or not recorded in the public records at Date of Policy but created, suffered assumed or agreed to by the insured claimant (b) not known to the Company not recorded m the public records at Date of Policy, but known to the insured claimant and not disclosed in wntmg to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy, (c) Resulting in no loss or damage to the insured claimant, (d) Attaching or created subsequent to Date of Policy or (e) Resulting in loss or damage which would not have been sustained lithe insured claimant had paid value for the insured mortgage or for the estate or interest insured by this policy 4 Unenforceability oldie lien of the insured mortgage because of the inability or failure of the insured at Date of Policy or the inability or failure of any subsequent owner of the indebtedness to comply with the applicable domg business laws of the state in which the land is situated. 5 Invalidity or unenforceability of the lien of the insured mortgage, or claim thereof which arises out of the transaction evidenced by the insured mortgage and is based upon usury Or any consume credit protection or truth in lending law 6 Any claim, which arises out of the transaction vesting in the insured the estate or interest insured by this policy or the tr+ncnotton creating the interest of the insured lender by reason of the operation of federal bankruptcy state uisolvency or similar creditors' rights laws EXCEPTIONS FROM COVERAGE — SCHEDULE 13, PART I This policy does not Insure against loss or damage (and the Company will not pay costs attorneys fees or expenses) which anse by reason of. 1 Taxes or assessments which are not shown as existing liens by the records of any taxing aulhonty that levies taxes or assessments on real property or by the public records Proceedings by a public agency which may result in taxes or assessments or notices of such proceedings whether or not shown by the records of such agency or by the public records 2 Any facts rights interests or chums which are not shown by the public records but which could be ascertained by an inspection of the land or which may be asserted by persons in possession thereof 3 Easements liens or encumbrances or claims thereof, which are not shown by the public records 4 Discrepancies conflicts in boundary lines, shortage in area, encroachments or any other facts which a correct survey would disclose and which are not shown by the public records 5 (a) Unpatented mining claims (b) reservations or exceptions in patents or m Acts authorizing the issuance thereof (c) water rights claims or title to water whether or not the matters excepted under (a) (b) or (c) are shown by the public records CLTA HOMEOWNER'S POLICY OF TITLE INSURANCE (10/22/03) ALTA HOMEOWNER'S POLICY OF TITLE INSURANCE EXCLUSIONS In addition to the Exceptions m Schedule B, You me not insured against loss costs attorneys fees and expenses resultmg from 1 Governmental police power, and the existence or violation of any law or government regulation This includes ordinances, laws and regulations concerning a, building b zoning c land use d. improvements on the Land c land division f environmental protection This Exclusion does not apply to violations or the enforcement of these matters if nonce of the violation or enforcement appears in the Public Records at the Policy Date This Exclusion does not limit the coverage described in Covered Risk 14 15 16 17 or 24 2 The failure of Your existing structures or any part of them to be constructed in accordance with applicable building codes This Exclusion does not apply to violations of building codes if notice of the violation appears in the Public Records at the Policy Date 3 The right to take the Land by condemning it, unless. a. a notice of exercising the right appears in the Public Records at the Policy Date or b the taking happened before the Policy date and n binding on You if You bought the Land without knowing of the tokmg 4 Risks a. that are created allowed, or agreed to by You, whether or not they appear in the Public Records• b. that are known to You at the Policy Date, but not to Us unless they appear m the Public Records at the Policy Date, o that result in no loss to You or d. that Fust occur after the Policy Date— this does not limit the coverage deacribcd in Covered Risk 7 8d, 22 23 24 or 25 5 Failure to pay value for Your Title 6 Lack of aright• a to any land outside the arca specifically described and referred to in paragraph 3 of Schedule A and b in streets alleys or waterways that touch the land. This Exclusion does not limit the coverage described in Covered Risk 11 or l8 LIMITATIONS ON COVERED RISKS Your insurance for the following Covered Risks is limited on the Owner's Coverage Statement as follows' For Covered Risk 14 15 16 and 18, Your Deductible Amount and Our Maxunam Dollar Limn of Liability shown in Schedule A The deductible amounts and maximum dollar limns shown on Schedule A areas follows Your Deductlic Amount Om Maximum Dollar i imit of Liability Covered Risk 14: 11of Policy Amount or 52,500 510,000 (whichever is less) Covered Risk 15 11of Policy Amount or 55,000 525,000 (whichever is less) Covered Risk 16: 11: of Policy Amount or 55,000 525,000 (whichever is less) Covered Risk 18 114 of Policy Amount or 52,500 55,000 (whichever its less) AMERICAN LAND TITLE ASSOCIATION RESIDENTIAL TITLE INSURANCE POLICY (6 1-87) EXCLUSIONS In addition to the Exceptions in Schedule B you are not insured against loss, costs attorneys fees and expenses resulting from I Governmental police power, and the existence or violation of any law or government regulation This includes building and zoning ordinances and also laws and regulations concerning • land use • Improvements on the land • Land division • Environmental protection This exclusion does not apply to violations or the enforcement of these masters which appear in the public records at Policy Date File No 02121604 This exclusion does not Emit the zoning coverage described in items 12 and 13 of Covered Title Risks 2 The nght to take the land by condemning 11 unless A notice of exercising the right appears in the public records on the Policy Date The taking happeacd prior to the Policy Date and is binding on you if you bought the land without knowing of the taking 3 Title Risks That are created, allowed, or agreed to by you That are known to you, but not to us, on the Policy Date— unless they appeared in the Public Records That result m no loss 00 you • That first affect your title after the Polley Date — this does not lama the labor and material lien coverage m ]tem B of Covered Title Risks 4 Failure to pay value for your title 5 Lack of a right To any land outside the area specifically described and referred to in Item 3 of Schedule A OR In streets, alleys, or waterways that touch your land This exclusion does not limit the access coverage m Item 5 of Covered Title Risks AMERICAN LAND TITLE ASSOCIATION LOAN POLICY (10-17 92) WITH ALTA ENDORSEMENT FORM 1 COVERAGE EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company wall not pay loss or damage, casts attorney's fees or expenses which arse by reason of. I (a) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws ordinances or regulations) restnctwg rcgulatmg probibitmg or relating to (1) the occupancy use or enjoyment of the land, (E) the character, dimensions or location of any improvement now or hereafter erected on the land, (ui) a separation in ownership or a change in the dimensions or arca of the land or any pared of which the land it or was a part or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a nonce ofa defect hen or encumbrance mulling from a violation or alleged violation affecting the land has been recorded in the public records at Date of Polley (b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect, hen or encumbrance resulting from a violation or alleged violation effecting the land has been recorded m the public records at Date of Policy 2 Rights of eminent domain unless notate of the exercise thereof has been recorded m the public records at Date of Policy but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights ofa purchaser for value without knowledge 3 Defects, lids encumbrances, adverse claims or other matters (a) created, suffered, assumed or agreed to by the insured claimant (b) not known to the Company not recorded m the public records at Date of Policy but known to the mired claimant and not disclosed m wntmg to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy, (c) resulting in no loss or damage to the insured claimant (d) attaching or created subsequent to Date of Policy (except to the extent that this policy insures the priority of the lien of the insured mortgage over any statutory lien for services, labor or material or to the extent insurance as afforded herein as to assessments for street improvements under construction or completed at Date of Policy) or (c) resulting m foss or damage which would not have been sustained if the insured claimant had paid value for the insured mortgage 4 Unenforceability of the lien of the insured mortgage because of the inability or failure of the insured at Date of Policy, or the usability or failure of any subsequent owner of the indebtedness to comply with applicable doing business laws of the state in which the land is situated 5 Invalidity or unenforceability of the lien of the muted mortgage or claim thereof which arses out of the transaction evidenced by the insured mortgage and is baud upon usury or any consumer credit protection or truth in lending law 6 Any statutory lien for services, labor or materials for the claim of priority of any statutory lien for services, labor or materials over the lien of the insured mortgage) arising from an improvement or work related to the land which is contracted for and commenced subsequent to Date of Policy and is not financed in whole or in pan by proceeds of the indebtedness seemed by the insured mortgage which at Date of Policy the insured has advanced or 1s obligated to advance 7 Any claim which arises out of the transaction creating the interest of the mongageo insured by this Policy, by reason of the operation of federal bankruptcy slate insolvency or similar creditors nghfs laws that is based on (1) the transaction creating the interest of the insured mortgagee being deemed a fraudulent conveyance or fraudulent transfer or (ii) the subordination of the interest of the msured mortgagee as a result of the application of the doctrine of equitable subordination or (ui) the transaction ereatmg the interest of the insured mortgagee being deemed a pre (a) to timely record the instrument of transfer, or (b) of such recordation to impart notice to a purchaser for value or a judgment or lien creditor The above policy forms may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage pohcy will also include the following General Exceptions EXCEPTIONS FROM COVERAGE This policy does not unsure against loss or damage (and the Company will not pay costs, attorneys fees or expenses) which arse by reason of I Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records Proceedings by a public agency which may result in taxes or assessments or notices of such procea ding , whether or not shown by the records of such agency or by the pubic records 2 Any facts rights interests or claim which are not shown by the public retards but which Could be ascertained byan inspection of the land or which may be asserted by persons in possession thereof 3 Easements liens Or encumbrances err claims thereof which are not shown by the public records 4 Discrepancies conflicts m boundary 10105 shortage m area, encroachments or any other facts which a correct survey would disclose, and which are not shown by the public records 5 (a) Unpatented mining claims, (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water nghfs clams or title to wafer whether or not the matters excepted under (a) (b) or (c) are shown by the public records AMERICAN LAND TITLE ASSOCIATION OWNER'S POLICY (10-17 92) EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage costs, attorneys fees or expenses which arise by reason of I (a) Any law, ordinance or governmental regulation (including but not honed to building and zoning laws ordinances or regulations) restncting regulating prohibiting or re101101 to (1) the occupancy use or enjoyment of the land (ii) the character, dimensions or location of any improvement now or hereafter erected on the land, (iii) a separation in ownership ora change in the dimensions or area of the land or any parcel of which the Jand is or was a part or (iv) environmental protection or the effect of any violation of these laws ordinances or governmental regulations except to the extent that a notice of the enforcement thereof or a notice ofa defect lien or encumbrance resulting from a violation or alleged violating affecting the land has been recorded in the public records at Date of Pa[icy (b) Any governmental policy power not excluded by (a) above except to the extent that a notice of the exereute thereof or a notice of a defect lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy 2 Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Dale of Policy but not excluding from coverage any taking which has occurred prior to Date of Polley which would be binding on the rights ofa purchaser for value without knowledge 3 Defects, liens, encumbrances, adverse claims or other matters (a) created, suffered, assumed or agreed to by the insured claimant (b) not known to the Company not recorded m the public records at Date of Policy but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became on msurcd under this policy (c) resulting in no loss or damage to the insured claimant, (d) attaching or treated subsequent to Date of Policy or (e) resulting in loss or damage which would rat have been sustained if the insured claimant had paid value for this estate or interest insured by this policy 4 Any claim which arises out of the transaction vesting in the insured the estate or 01terest insured by the policy by reason of the operation of federal bankruptcy slate insolvency or similar creditors rights laws that IS based on (i) the transaction creating the estate or interest insured by this policy being deemed a fraudulent conveyance or fraudulent transfer, or (ii) the transaction creating the estate or interest insured by the policy being deemed a preferential transfer except where the preferential transfer results from the failure (a) to timely record the instrument of transfer or (b) of such recordation to impart notice to a purchaser for value or a judgment or hen creditor The above policy forms may be issued to afford either Standard Coverage or Extended Coverage In addition to the above Exclusions from Coverage the Exceptions from Coverage in a Standard Coverage Policy will also include the following General Exceptions. EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage (and the Company will not pay costs, attorneys fres or expenses) which arise by reason of 1 Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records File No 02121604 Proceedings by a public agency which may result in taxes or as •laments or notices of such proceedings wbethia- or not shown by the records of such agency or by the pubic records 2 Any facts rights interests or claim which are not shown by the public records but winch could be ascertained by an inspection of the land or which may be asserted by persons m possession thereof 3 Easements liens or encumbrances or claims thereof which are not shown by the public records 4 Discrepancies, conflicts m boundary Imes shortage m arra, encroachments or any other facts which a correct survey would disclose, and which are not shown by the public records 5 (a) Unpatented mmmg clams (b) reservations or exceptions m patents or m Acts authorizing the issuance thereof. (o) water nghts, claims or title to water, whether or not the matters excepted under (a), (b) or (c) are shown by the public records ALTA EXPANDED COVERAGE RESIDENTIAL LOAN POLICY (10/13/01) EXCLUSIONS FROM COVERAGE The following masers are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs attorneys fees or expenses which anse by reason of € (a) Any law ordinance or governmental regulation (mcluding but not limned to budding and zoning laws ordmances or regulations) restnclmg regulating, prohibiting or relating to (i) the occupancy, use or enjoyment of the Land (ii) the character dimensions or location of any improvement now or hereafter erected on the Land, (iii) a separation in ownership or a change in the dimensions or areas of the Land or any parcel of which the Land is or was a part, or (iv) environmental protection, or the effect of any violation of these laws ordinances or governmental regulations except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the Land has been recorded in the Public Records at Date of Policy This exclusion dos not limit the coverage provided under Covered Risks 12 13 14 and 16 of this policy (b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect hen or encumbrance resulting from a violation or alleged violation affecting the Land has been recorded in the Public Accords at Date of Policy This exclusion docs not limit the coverage provided under Covered Risks 12, 13, 14, and 16 of it= Policy 2 Rights of eminent domain unless notice of the exercise thereof has been recorded in the Public Records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without Knowledge 3 Defects hens encumbrances adverse claims or other matters (a) created, suffered, assumed or agreed to by the Insured Claimant, (b) not Known to the Company, not recorded in the Public Records at Dale of Policy, but Known to the Insured Claimant and not disclosed in wntmg to the Company by the Insured Claimant pnorto the date the Insured Claimant became an Insured under this policy (c) resulting In no loss or damage to the Insured Claimant (d) unaching or created subsequent to Dale of Policy (this paragraph does not limit the coverage provided under Covered Risks 9, 16, 18,19 20 21 22 23, 24, 25 and 26) or (e) resulting in loss or damage which would not have been sustained if the insured Claimant had paid value for the Insured Mortgage. 4 Unenforceability of the lien of the Insured Mortgage because of the inability or failure of the Insured at Date of Policy or the mobility or failure of any subsequent owner of the mdebtedne:s to comply with applicable doing business laws of the state m which the Land is situated 5 Invalidity or unenforceability of the hen of the Insured Mortgage or claim thereof which arises out of the transaction evidenced by the Insured Mortgage and is based upon usury, except as provided m Covered Risk 27, or any consumer credit protection or truth in lending law 6 Real property taxes or assessments of any governmental authority which become a lien on the Land subsequent to Dais of Po hey Tlus exclusion does not limit the coverage provided under covered Risks? 8(e)and 26 7 Any ciasm ofmvatidily unenforceability or lack of pnonty of the hen of the Insured Mortgage as to advances or modifications made after the Insured has Knowledge that the vest= shown m Schedule A is no longer the owner of the estate or interest covered by this policy This exclusion dos not limit the coverage provided in Covered Risk 8 8 Lack of priority of the lien of the Insured Mortgage as to each and every advance made after Date of Policy and all interest charged thereon over hens encumbrances and other matters affecting the title, the existence of which are Known to the Insured at (a) The time of the advance, or (b) The time a modification is made to the terms of the Insured Mortgage which changes the rate of interest charged, if the rate of Interest is greater as a result of the modification than it would have been before the modification This exclusion does not Limit the coverage provided in Covered Risk 8 9 The failure of the residential structure, or any portion thereof to have been constructed before on or atier Date of Policy in accordance wah applicable building cods This exclusion does not apply to violations of building codes if notice of the violation appears m the Public Records at Date of Policy LandAmerica Order No 02121604 Notice to Customers You may be eligible for a $20 00 reduction in your title or escrow fees in this transaction charged by Commonwealth Land Title Insurance Company pursuant to the Final Judgments entered in People of the State of California v. LandAmerica Financial Group. Inc , et al , Sacramento Superior Court Case No 92 AS 06111, and Taylor, et al. v. LandAmerica Financial Group, Inc . et al , Los Angeles Superior Court Case No BC 231917 You are eligible for this $20 00 reduction in your title or escrow fees if you meet the following requirements 1 You are a natural person or trust, 2 Your transaction involves the purchase, sale or refinancing of residential real property containing one - to -four -dwelling units; 3 You previously purchased title insurance or escrow services involving a transaction which closed between May 19, 1995 and October 8, 2002 from one of the following companies LandAmerica Financial Group, Inc Commonwealth Land Title Insurance Company or Commonwealth Land Title Company Lawyers Title Insurance Corporation or Lawyers Title Company First American Title Insurance Company, First American Title Company, First American Title Guarantee Company Fidelity National Financial, Inc. Fidelity National Title Insurance Company Fidelity National Title Company Fidelity National Title Insurance Company of California, Inc Fidelity National Loan Portfolio Services Ticor Title Insurance Company Security Union Title Insurance Company Chicago Title Insurance Company Chicago Title Company Chicago Title and Trust Company Rocky Mountain Support Services, Inc California Tracking Service, Inc Title Accounting Services Corporation 4 You did not receive a $65 00 cash payment from LandAmerica Financial Group, Inc. in the reconveyance fee claims process pursuant to the Final Judgments entered in People of the State of California v. LandAmerica Financial Group, Inc . et al., Sacramento Superior Court Case No 92 AS 06111, and Taylor. et al v LandAmerica Financial Group, Inc., et al., Los Angeles Superior Court Case No BC 231917 If you meet the foregoing requirements and want the $20 00 fee reduction complete this form and return it to your Commonwealth Land Title Insurance Company escrow or title officer. NOTE• If you are eligible for the $20 00 fee reduction please complete and return this form. You must advise us of your eligibility prior to closing in order to receive the $20.00 fee reduction. Name Address Telephone No IIN LandAmerica Order No 02121604 Notice to Customers You may be eligible for a $20 00 reduction in your title or escrow fees in this transaction charged by Commonwealth Land Title Insurance Company pursuant to the Final Judgments entered in People of the State of California v LandAmerica Financial Group, Inc., et al., Sacramento Superior Court Case No 92 AS 06111, and Taylor, et al v LandAmerica Financial Group. Inc., et al., Los Angeles Superior Court Case No BC 231917 You are eligible for this $20 00 reduction in your title or escrow fees if you meet the following requirements 1 You are a natural person or trust, 2 Your transaction involves the purchase, safe or refinancing of residential real property containing one - to -four -dwelling units, 3. You previously purchased title insurance or escrow services involving a transaction which closed between May 19, 1995 and October 8, 2002 from one of the following companies. LandAmerica Financial Group, Inc. Commonwealth Land Title Insurance Company or Commonwealth Land Title Company Lawyers Title Insurance Corporation or Lawyers Title Company First American Title Insurance Company, First American Title Company, First American Title Guarantee Company Fidelity National Financial, Inc Fidelity National Title Insurance Company Fidelity National Title Company Fidelity National Title Insurance Company of California, Inc Fidelity National Loan Portfolio Services Ticor Title Insurance Company Security Union Title Insurance Company Chicago Title Insurance Company Chicago Title Company Chicago Title and Trust Company Rocky Mountain Support Services, Inc California Tracking Service, Inc Title Accounting Services Corporation 4 You did not receive a $65 00 cash payment from LandAmerica Financial Group, Inc in the reconveyance fee claims process pursuant to the Final Judgments entered in People of the State of California v LandAmerica Financial Group. Inc., et al , Sacramento Superior Court Case No 92 AS 06111, and Taylor, et al v. LandAmerica Financial Group. Inc , et al , Los Angeles Superior Court Case No BC 231917. If you meet the foregoing requirements and want the $20 00 fee reduction complete this form and return it to your Commonwealth Land Title Insurance Company escrow or title officer NOTE: If you are eligible for the $20 00 fee reduction please complete and return this form You must advise us of your eligibility prior to closing in order to receive the $20 00 fee reduction Name Address Telephone No 11A3 LandAmerica Commonwealth Commonwealth Land Title Company 275 W Hospitality Lane Suite 200 San Bernardino, CA 92408 Phone (909) 888-7541 NOTICE OF TITLE POLICY DISCOUNTS Commonwealth Land Title Insurance Company - California Residential Transactions Order No 2121604-92 Escrow No 02121604 Please note that certain discounts sometimes apply to reduce title insurance premiums 'YOU SHOULD REVIEW THE POSSIBLE DISCOUNTS DESCRIBED BELOW AND TELL YOUR ESCROW OFFICER IF YOU THINK ANY APPLY TO THIS TRANSACTION These discounts are not applicable to subdivision sales. SHORT TERM RATE — 20% off This discount is given automatically when our title search indicates that it applies It applies when a current order for title insurance is placed within 60 months from the date of issuance of a prior loan or owner's policy issued by any title insurance company The Short Term Rate does not apply when another discount shown on this page applies REFINANCE RATE — 35% off This discount is given automatically when our title search indicates that it applies It applies to ALTA Loan Policies covering a new loan which refinances a loan insured with another ALTA loan policy issued by any title insurance company Please acknowledge your understanding of the above, even if no discount applies, by signing below Buyer/Borrower: Date* Seller Date Signature Signature Signature Signature Please sign and return this Notice to your Title Company IN LandAmerica Commonwealth Commonwealth Land Title Company 275 W Hospitality Lane Suite 200 San Bernardino, CA 92408 Phone (909) 888-7541 NOTICE OF TITLE POLICY DISCOUNTS Commonwealth Land Title Insurance Company - California Residential Transactions Order No.. 2121604-92 Escrow No.. 02121604 Please note that certain discounts sometimes apply to reduce title insurance premiums YOU SHOULD REVIEW THE POSSIBLE DISCOUNTS DESCRIBED BELOW AND TELL YOUR ESCROW OFFICER IF YOU THINK ANY APPLY TO THIS TRANSACTION These discounts are not applicable to subdivision sales. SHORT TERM RATE — 20% off This discount is given automatically when our title search indicates that it applies It applies when a current order for title insurance is placed within 60 months from the date of issuance of a prior loan or owner's policy issued by any title insurance company The Short Term Rate does not apply when another discount shown on this page applies REFINANCE RATE — 35% off This discount is given automatically when our title search indicates that it applies. It applies to ALTA Loan Policies covering a new loan which refinances a loan insured with another ALTA loan policy issued by any title insurance company Please acknowledge your understanding of the above, even if no discount applies, by signing below Buyer/Borrower. Date. Seller Date Signature Signature Signature Signature Please sign and return this Notice to your Title Company €RIS OAP 13 FOR TRE PURPOSE Or AO VALOREM TAXATION ONLY aciobsr 2003 Pin Traci No 13103,M.B.223/58-61 Amending Map, M.9.225/69-72 0176 City of Redlands Tax Rate Area 5023 0294— 1 6 Ptn.Loi "A" ASSESSE0 OR PANE 11 Assessor's Mop Pin N 1/2, N E 1/4, Sea 11 Book 0294 Page 16 T 2S., R.3W San Bernardino County l SOO FEB 0 4 2904 OLYLSE0 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO City Clerk's Office City of Redlands P 0 Box 3005 Redlands, CA 92373 THIS DOCUMENT IS APPROVED AS TO CONTENT AND FORM. CITY OF REDLANDS, a municipal corporation S4SAN PEPPLER, My By Attest Lorrie A P N 0294-161-08 er, City Clerk Space Above This Line for Recorder's Use Only Order No 02121604-RK4 Escrow No 21802 -JB EASEMENT DEED FOR ROADWAY AND UTIILITIES PURPOSES For valuable consideration, receipt of which is hereby acknowledged TONY LOUAY LOUKA and BRENDA EVANS-LOUKA, husband and wife as joint tenants, hereby grant to the CITY OF REDLANDS, a municipal corporation and political subdivision of the State of California, and its successors and assigns ("City"). (1) an irrevocable, exclusive, permanent and perpetual easement, together with the right to forever maintain, operate, improve, alter, relocate, reconstruct, inspect, repair, occupy and use and otherwise install necessary or convenient appurtenances therefor, for the construction and maintenance of public and private above ground and underground utility facilities as determined reasonable or necessary by the City, together with all rights of ingress and egress, and (2) an irrevocable, exlusive, permanent and perpetual easement, together with the right to construct, operate, manitam, replace and renew a street and roadway, and otherwise install necessary or convenient appurtenances therefor, for street and roadway purposes, mcluding ingress and egress for vehicular and/or pedestrian and other traffic; in, over and under that certain real property ("Easement Area") described on Exhibit "A" and shown on Exhibit "B" attached hereto Document Date October 11, 2005 TONY LOUAY LOUKA BRENDA EVANS-LOUKA 02-07-2005 04,37pm Fram—KRUEPER ENGINEERING + T-372 P 002/002 F-093 Exhibit "A" A PORTION OF THE WEST ONE-HALF OF THE NORTHEAST ONE-QUARTER OF THE NORTHEAST ONE-QUARTER OF SECTION 11, TOWNSHIP 2 SOUTH, RANGE 3 WEST, SAN BERNARDINO MERIDIAN, IN THE CITY OF REDLANDS, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHEAST CORNER QF SAID WEST ONE-HALF OF THE NORTHEAST ONE-QUARTER QF THE NORTHEAST ONE-QUARTER OF SECTION 11, SAID CORNER ALSO BEING THE NORTHWESTERLY CORNER OF PARCEL MAP NO 8226, AS PER PARCEL MAP BOOK 91, PAGES 25 AND 26, RECORDS OF SAID COUNTY, THFNCE ALONG THE EAST LINE OF SAID WEST ONE-HALF SOUTH 0°22'28" EAST 11 51 FEET TO THE TRUE POINT OF BEGINNING, SAID EAST LINE ALSO BEING THE WEST PARCEL BOUNDARY OF SAID PARCEL. MAP NO. 8226, THENCE CONTINUING ALONG SAID EAST LINE SOUTH 0°22'28" EAST 57 41 FEET TO THE SOUTHWEST CORNER OF SAID PARCEL MAP NO 8226; THENCE ON A LINE PERPENDICULAR TO SAID EAST LINE SOUTH 89°37'32' WEST 21 83 FEET TO THE EASTERLY RIGHT-OF-WAY OF EDGEMONT DRIVE, 50 FEET WIDE, AS SHOWN ON AMENDED TRACT NO. 13103, RECORDED IN MAP BOOK 225, PAGES 69-72, RECORDS OF SAN BERNARDINO COUNTY, THENCE ALONG SAID EASTERLY RIGHT-OF-WAY NORTH 01°19'42" EAST 57.44 FEET, THENCE NORTH 89°37'32" EAST 20 12, MORE OR LESS, TO THE TRUE POINT OF BEGINNING DESCRIBED AREA CONTAINS 1,204 SQUARE FEET. CARSON L STORER, P L S. EXPIRATION DATE JUNE 30, 2006 Scale: 1" = 10' East Right -Of -Way of Edgemont Drive Lot 8 MB 225 Pg. 69-72 Exhibit "B" P.O.C. N.E. Corner of west one -hail of the N.E. one-quarter of the Northeast one-quarter of see. 11, T2S, R3W, SBEM N 89°37'32"E 20.12 e! If Area of Description 21.83 Parcel Map 8226 PMB 91/25-26 Parcel 4 T.P.O.B. S 89°37'32"W Basis of bearing being the west line of Parcel 4 Parcel Map 8226 PMB 91125 being S 0°22'28"E. SW Corner Parcel Map 8226 (`arinn T _ Ctnrar PTC 101 CERTIFICATE OF ACCEPTANCE This is to certify that the interest in real property conveyed to the City of Redlands, a Municipal Corporation, dated October , 2005, from Tony Louka and Brenda Evans-Louka is hereby accepted and the City consents to recordation thereof by its duly authorized officer Dated October , 2005 City Manager City of Redlands STATE OF CALIFORNIA NOTARY ACKNOWLEDGEMENT ) ss COUNTY OF ) On this day of , 2005, 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 satisfactory evidence to be the persons whose names are subscribed to the within instrument and acknowledged to me that they executed the same in their authorized capacities, and that by their signatures on the instrument the persons, or the entity upon behalf of which the persons acted, executed the instrument WITNESS my hand and official seal Notary Public in and for Said State Guardian Escrow, Inc. 101 East Redlands Blvd. Suite 180 Redlands, CA 92373 (909) 793-3147 FAX (909)798 4606 NOTICE AND DISCLOSURE (Effective January 1 2003) Property , Redlands, CA 92373 November 2, 2005 Escrow No 21802 SB In accordance with Section 18662 of the Revenue and Taxation Code, a Buyer may be required to withhold an amount equal to 3 1/3% of the sales price in the case of a disposition of California real property interest by either 1 A Seller who is an Individual or when the disbursement instructions authorize the proceeds to be sent to a financial intermediary of the Seller OR 2 A corporate Seller that has no permanent place of business in California The Buyer may become subject to penalty for failure to withhold in an amount equal to the greater of 10 per cent of the amount required to be withheld or five hundred dollars ($500 00) However, notwithstanding any other provision included in the California statutes referenced above, no Buyer will be required to withhold any amount or be subject to penalty for failure to withhold if 1 The sales pnce of the California real property conveyed does not exceed One Hundred Thousand Dollars ($100,000 00) OR 2 The Seller executes a written certificate under the penalty of perjury, certifying that the Seller is a Corporation with a permanent place of business in California, OR 3 The Seller who is an Individual, executes a written certificate, under the penalty of perjury, of any of the following a That the California real property being conveyed is the Seller's pnncipal residence (within the meaning of Section 121 of the Internal Revenue Code) b That the California real property being conveyed is or will be exchanged for property of like kind (within the meaning of Section 1031 of the Internal Revenue Code) but only to the extent of the amount of gain not required to be recognized for California income tax purposes under Section 1031 of the Internal Revenue Code, c That the California real property has been compulsorily or involuntarily converted (within the meaning of Section 1033 of the Internal Revenue Code) and that the Seller intends to acquire property similar or related in service or use so as to be eligible for nonrecognition of gam for California income tax purposes under Section 1033 of the Internal Revenue Code, d That the California real property transaction will result in a loss for California income tax purposes The Seller is subject to penalty for knowingly filing a fraudulent certificate for the purpose of avoiding the withholding requirement The California statutes referenced above include provisions which authorize the Franchise Tax Board to grant reduced withholding and waivers from withholding on a case by case basis for corporations or other entities The Escrow Holder will not undertake to withhold or remit funds to any taxing authority unless specifically instructed in writing to do so In the event Escrow Holder receives a withholding request, appropriate mutual and written instructions will be required from all parties prior to the close of this escrow You are authonzed to furnish a copy of Seller s Certificate, if applicable, to Buyer upon request without further responsibility on your part as escrow holder DUE TO THE COMPLEXITY OF THESE TAX LAWS AND THE PENALTY PROVISIONS FOR FAILURE TO WITHHOLD IT IS RECOMMENDED THAT THE BUYER CONSULT WITH HIS/HER ATTORNEY OR FINANCIAL ADVISOR AS TO BUYER S OBLIGATION THEREUNDER, IF ANY PRIOR TO THE CLOSE OF THIS ESCROW CITY OF REDLANDS, a municipal TONY LOUAY LOUKA corproatro BY BRENDA EVANS LOUISA 4 , SISA" PEPPLER Ma o Attes Lor>F•ie Poyze}�f »ity Clerk Guardian Escrow, Inc 101 East Redlands Blvd Suite 180 Redlands CA 92373 (909) 793 3147 FAX (909)798 4606 NOTICE TO BUYERS AND SELLERS Property , Redlands, CA 92373 Escrow No 21802-3B 1 THE UNDERSIGNED BUYERS AND SELLERS HEREBY ACKNOWLEDGE BEING ADVISED THAT CALIFORNIA STATE LAW REQUIRES THAT THIS ESCROW NOT CLOSE, NOR DOCUMENTS BE RECORDED UNTIL ALL FUNDS REQUIRED OF THE PARTIES (INCLUDING NEW LOAN PROCEEDS) HAVE BEEN COLLECTED, AS DEFINED BY LAW IN ORDER TO MAINTAIN COMPLIANCE, WE SUGGEST THAT THE MOST EFFICIENT METHOD OF DEPOSITING FUNDS IS TO TRANSFER BY WIRE CASHIER'S CHECKS DRAWN ON A CALIFORNIA BANK WILL, IN MOST CASES BE ELIGIBLE FOR "NEXT DAY CLOSING ANY OTHER CHECK INSTRUMENTS, SUCH AS OFFICIAL CHECKS, BANK CHECKS, ETC , PURSUANT TO DEPARTMENT OF CORPORATIONS GUIDELINES, WILL BE TREATED AS PERSONAL CHECKS AND MUST BE CLEARED TO THE SATISFACTION OF GUARDIAN ESCROW, INC , WHICH CLEARANCE IS ESTIMATED TO TAKE FROM 3 TO 5 BUSINESS DAYS 2 TO MINIMIZE DELAYS IN DOCUMENT RECORDING AND THE CLOSING OF YOUR ESCROW a Whenever the amount of funds required for closing is $100 000 00, or more, the closing funds should be transferred by wire directly to our bank as follows City National Bank 5601 East Slauson Avenue Commerce, CA 90040 Routing Number 122016066 Account Number: 013007691 FOR DEPOSIT TO GUARDIAN ESCROW, INC., REDLANDS TRUST ACCOUNT CREDIT TO ESCROW NO 21802J13 {MAKE CERTAIN WIRE TRANSFER REFERENCES NAME OF DEPOSITOR) b Whenever the amount of funds required for closing is less than $100,000 00 the closing funds should either be wired to our account as above instructed, or deposited to escrow in the form of a California Bank Cashiers Check payable to Guardian Escrow, Inc (Please be reminded that not ail bank checks are Cashiers Checks) 3 PER DIEM INTEREST WILL BE CHARGED BY SELLER'S LENDER UNTIL THE DATE LENDER RECEIVES THE PAYOFF FUNDS (OR AS OTHERWISE DIRECTED BY LENDER'S DEMAND STATEMENT) PER DIEM INTEREST WILL BE CHARGED BY THE BUYER'S LENDER FROM THE DATE THE LENDER FUNDS THE LOAN THE UNDERSIGNED HEREBY ACKNOWLEDGES RECEIPT OF A COPY OF THE ABOVE NOTICE CITY OF REDLANDS a municipal TONY LOUAY LOUKA corproation By.13/4„ BRENDA EVANS LOUKA S SAN EPPLER Mayot Attest Lorrie Poyzer/,/1C}ty Clerk Guardian Escrow, Inc. 101 East Redlands Blvd. Suite 180 Redlands, CA 92373 (909) 793 3147 FAX (909)798 4606 PRIVACY POLICY Escrow No 21802 .I11 Our Commitment to Your Privacy. Guardian Escrow, Inc , has a long standing policy of protecting the confidentiality and security of information we collect about our customers We may from time to time ask you to provide us with certain information You may be concerned with what we will do with such information, particularly personal or financial information Therefore Guardian Escrow, Inc has adopted this Privacy Policy" to govern the use and handling of your personal information How We Collect Information Guardian Escrow Inc gets most of its information about your finances employment or other personal characteristics from you or from other parties working for you This privacy Policy deals with the information which you provide to Guardian Escrow, Inc It does not cover information which we receive from any other source, such as a public record or from another person or entity The types of information which Guardian Escrow, Inc may collect includes but it not limited to. the following * information you provide on applications, forms and in other communications to us, whether in writing in person, by telephone E-mail, electronic transfer or any other means, * information we develop as part of handling your transaction, * information about your transactions with us, any affiliated companies, or others and, • information we receive from a consumer reporting agency Guardian Escrow Inc may verify this collected information or get additional informatton from other sources Why We Collect and How We Use Information Guardian Escrow Inc limited the collection of information about you to a minimum which slsariteEscrow, Inc os,rvices We request r on from youfor egiitimatebuinespurporelated to the transactions are handling for youand not for the benefit of any party not connected with the transactions Disclosures or Information Guardian Escrow, Inc will not release your information to nonaffiliated parties except 1) as necessary for us to provide the product or service you have requested of Guardian Escrow Inc , or 2) as required or permitted by law Such information may be used for any internal purpose, such as quality control efforts, audit purposes, to attorneys or other professionals, customer analysis, or to law enforcement and regulatory agencies, for example, to help us prevent fraud Except for such limited situations without your consent we will not make any disclosures of information to other companies who may want to sell their products or services to you For example, Guardian Escrow Inc does not sell customer lists and we will not sell your name to a catalogue company or telemarketer Guardian Escrow, Inc , may provide such nonpublic personal information listed above to an affiliated company of Guardian Escrow, Inc , if the affiliate is also Involved in the transaction Guardian Escrow Inc , may however, store such information indefinitely including the period after which any customer relationship has ceased Former Customers. This Privacy Policy applies to you even if you are no longer a customer of Guardian Escrow Inc How We Protect Information Guardian Escrow, Inc , has taken steps to ensure that only authorized parties have access to your information We restrict nonpublic personal information about you to those individuals who need to know that information in order to provide you with services Guardian Escrow Inc , will use its best efforts to train and supervise its employees and agents to ensure that your information will be handled responsibly and in accordance with this Privacy Policy We currently maintain physical, electronic, and other safeguards to comply with all applicable guidelines to protect your nonpublic personal information Further Information. We reserve the right to change this Privacy Policy The examples contained within this Privacy Policy are illustrations and are not intended to be exclusive This notice complies with recently enacted federal law and regulations regarding pnvacy You may have additional rights under other foreign or state laws that may apply to you 1/We have received and read a copy of this Pnvacy Policy notification as of the date below ? n Peps _ , rfa41oor Lorrie Poyfr , City Clerk Date 11/7/05 Date 11/7/05 Guardian Escrowlpnvacy policy.03 June 29, 2001 Signature Signature. Guardian Escrow, Inc 101 East Redlands Blvd , Suite 180 Redlands CA 92373 (909) 793 3147 FAX (909)796 4606 TO Guardian Escrow, Inc SALE ESCROW INSTRUCTIONS Dale October 11, 2005 Escrow Officer Jeri Bray, CSEO Escrow Number 21802 JB CITY OF REDLANDS, a municipal corporation, (hereinafter referred to as Buyer) agree to purchase from TONY LOUAY LOUKA and BRENDA EVANS-LOUKA, (hereinafter referred to as Seller) the real property set forth herein per the terms, conditions consideration and Instructions hereinafter stated The Seller and Buyer herein shall deliver these signed escrow instructions to Guardian Escrow, Inc (hereinafter known as Escrow Holder) Terms of Transaction I will deposit into escrow the sum of $ 6,000 00 To Complete the Total Consideration of $ 6 000 00 Furthermore I/We the undersigned Buyer will execute and deliver any instruments and/or funds which this escrow requires of the Buyer to show title as called for all of which you are instructed to use on or before November 30, 2005 provided you hold a Policy of Title insurance issued through Commonwealth Land Title Company (the title company selected by the parties), with the usual title company's exceptions with a liability of not less than $6,000 00, covering property to the County of San Bernardino, State of California described as follows (1) an irrevocable, exclusive, permanent and perpetual easement, together with the right to forever maintain, operate, improve, alter, relocate, reconstruct, inspect, repair, occupy and use and otherwise install necessary or convenient appurtances therefor, for the construction and maintenance of public and private above ground and underground utility facilities as determined reasonable or necessary by the City, together with all rights of ingress and egress, and (2) an irrevocable, exclusive, permanent and perpetual easement, together with the right to construct, operate, maintain, replace and renew a street and roadway, and otherwise install necessary or convenient appurtances therefor, for street and roadway purposes, including ingress and egress for vehicular and/or pedestrian and other traffic, in, over and under that certain real property ("Easement Area") described on Exhibit "A" and shown on Exhibit "B" attached hereto AFFECTING PROPERTY COMMONLY KNOWN AS 306 Edgemont Drive, Redlands, CA 92373 AFFECTING ASSESSOR PARCEL NUMBER 0294-161-08 SHOWING TITLE VESTED IN CITY OF REDLANDS, a municipal corporation and political subdivision of the State of California, and its successors and assigns ("City") SUBJECT ONLY TO (I) Second Installment Property Taxes for Fiscal Year 2005 2006 (2) Assessments and Bonds if any including all liens of assessment pursuant to the provisions of the Mello Roos Community Facilities Act not delinquent unpaid balance to be assumed by Buyer (3) Any covenants conditions restrictions reservations rights rights of way and easements of record, or in deed to file, and any exception of water minerals oil gas and kindred substances, on or under said land, now of record, or in deed to file ESCROW INSTRUCTIONS 1 This escrow transaction covers the conveyance of an easement for roadway and utilities purposes by Seller to Buyer Buyer and Seller acknowledge having received and approved prior to opening escrow a copy of that certain "Easement Deed for Roadway and Utilities Purposes , in the form attached hereto as Exhibit C" Seller initials ADDITIONAL INSTRUCTIONS ATTACHED HERETO AND MADE A PART HEREOF My annals below represent my agreement and acknowkdgmeni of the foregoing Buyer Initials Page 1 Guardian Escrow, Inc Date October 11, 2005 Escrow No 21802 -JB 2 Escrow is not to be concerned with any fire or other hazard insurance covering subject property 3 Seller will cause the holder of encumbrance of record to furnish an agreement subordinating its deed of trust to the 'Easement Deed for Roadway and Utilities Purposes" to be recorded through this escrow which agreement is to be prepared by, and be sufficient to the Buyer In connection with this matter a Buyer will deposit with Escrow Holder the Subordination Agreement" prepared by and sufficient to the Buyer, which document is to be forwarded to the Holder of the encumbrance of record with request for its execution thereof and return to Escrow Holder b Seller s execution of these instructions constitutes Seller's approval and authonzation for Guardian Escrow Inc , on behalf of the Seller to forward the request for execution of the Subordination Agreement directly to the Holder of the encumbrance of record In the event the said Holder requires additional authonzation or request from the Seller Seller will immediately comply therewith 4 Buyer will hand you Certificate of Acceptance to be attached to the Easement Deed when delivered for recording 5 There will be no pro ration of real property taxes between the parties 6 The undersigned Buyer and Seller acknowledge having received, read and approved a copy of the preliminary report issued by Commonwealth Land Title in its Order No 02121604 92, dated as of October 13, 2005, covering the subject property Second Installment Property for Fiscal Year 2005 2006 and Exception Items 1 through 6, as set forth in the report, are specifically approved to remain of record and may show in the policy of title insurance to be issued in conjunction with this escrow 7 Regardless of Additional Escrow Instructions set forth hereinafter to the contrary all fees, costs and charges in this escrow will be paid by Buyer, including but not limited to title policy fee, escrow fee documentary transfer tax 1099 reporting fees and costs of preparing, notarizing and recording documents 8 In the event Buyer or Seller utilize "facsimile" transmitted signed documents (via Panafax Telefax, Nefax, etc ), Buyer and Seller hereby agree to accept same and instruct you as escrow holder to rely upon such documents as if they bore original signatures Buyer and Seller hereby acknowledge and agree to provide to you within 72 hours of transmission any such documents bearing the original signatures Buyer and Seller further acknowledge and agree that any promissory note document required by a third party in conjunction with this escrow payment order, or document in this escrow which is to be recorded in an office of the County Recorder, must be the ortginal of such document, bear original signature(s) and be deposited with escrow holder prior to close of this escrow ADDITIONAL ESCROW INSTRUCTIONS 1 All funds received in this escrow shall be deposited with a State or National bank with other escrow funds Make disbursements by your check, checks not presented for payment within six months after date are subject to service charges in accordance with your schedule in effect from tune to time Make all adjustments and pro rations on the basis of a 30 day month Close of Escrow" is the date instruments are recorded All documents and funds due the respective parties herein are to be mailed to the addresses set out below their respective signatures unless otherwise Instructed Our signatures on any documents and instructions pertaining to this escrow indicate our unconditional approval of same Whenever provision is made herein for the payment of any sum the delivery of any instrument or the performance of any act "outside of escrow", you as escrow holder shall have no responsibility therefor and shall not be concerned therewith Documentary Transfer Tax is to be computed on full value of property conveyed (or full value less remaining encumbrances if applicable) and will be paid by Seller/Grantor unless otherwise stated In the event the amount of the Total Consideration is amended by the parties during the term of this escrow you are authonzed to correct the amount of the Documentary Transfer Tax on the deed without further instructions required 2 The parties to this escrow are made aware that escrow holder has no obligation to verify signatures of any of the parties involved ADDITIONAL INSTRUCTIONS ATTACHED HERETO AND MADE A PART HEREOF My murals below represent my agreement and acknowledgment of the foregoing Seller Initials Buyer Initials JJ7 6) Page 2 Guardian Escrow, Inc. Date October 11, 2005 Escrow No 21802-3B 3 You shall not be responsible for the following (1) the sufficiency or correctness as to form manner of execution or validity of any documents deposited in this escrow, (2) the identity authority or right of any person executing the same etcher as to documents of record or those handled in the escrow, or (3) the failure of any party to comply with any of the provisions of any agreement, contract or other instrument filed or deposited in this escrow or referred to in those escrow instructions Your duties shall be limited to the safekeeping of money and documents received by you as escrow holder and for the disposition in compliance with the written instructions accepted by you in this escrow You shall not be required to take any action regarding the collection maturity, or apparent outlaw of any obligations deposited with you unless otherwise instructed in writing Your liability as escrow holder shall be confined to the things specifically provided for in my written instmctions in this escrow 4 Where the assignment of any insurance policy from Seller/Grantor to Buyer/Grantee is concerned, Seller/Grantor guarantees to you any insurance policy handed you in this escrow is policy in force the policy has not been hypothecated and that all necessary premiums have been paid You are authorized to execute on behalf of the parties assignments of interest in any insurance policy (other than title insurance policies) called for in this escrow, you are authonzed to transmit for assignment any insurance policy to the insurance agent requesting that the insurer consent to such assignment, to request that a loss payee clause or such other endorsements as may be required be issued and to forward such policy to the lenders and entitled parties You shall not be responsible for verifying the acceptance of the request for assignment and policy of insurance by the insurance company The parties mutually agree that you will make no attempt to verify the receipt of the request for assignment by the issuing insurance company All parties are placed on notice that if the insurance company should fail to receive the assignment, the issuing company may deny coverage for any loss suffered by Buyer It is the obligation of the insured or the insured's representative to verify the issuing company s acceptance of the assignment of the policy 5 You are not to be held responsible in any way whatsoever for any personal property tax which may be assessed against any former or present owner of the subject property descnbed in these escrow instructions, nor for the corporation or license tax of any corporation as a former or present owner 6 If it is necessary proper or convenient for the consummation of this escrow, you are authorized to deposit or have deposited funds or documents or both handed you under these escrow instructions with any duly authorized sub escrow agent, including, but not limited to, any bank, trust company title insurance company title company, savings and loan association, or licensed escrow agent, subject to your order at or before close of escrow in connection with closing this escrow Any such deposit shall be deemed a deposit under the meaning of these escrow instructions 7 The parties to this escrow have satisfied themselves outside of escrow that the transaction covered by this escrow is not in violation of the Subdivision Map Act or any law regulation land division, zoning ordinances or building restrictions which may affect the land or improvements that are the subject of this escrow You, as escrow holder are relieved of all responsibility and liability in connection with such laws, ordinances, restrictions or regulations and are not to be concerned with any of their enforcement 8 If any form of Purchase Agreement or amendment or supplement (collectively "Purchase Agreement") is deposited in this escrow it is understood that such document shall be effective only as between the parties signing the Purchase Agreement You as escrow holder, are not to be concerned with the terms of any Purchase Agreement and are relieved of all responsibility for the enforcement of its terms Your only duty is to comply with the instructions set forth in the escrow instructions You are not responsible for interpreting or acting on any provision of any Purchase Agreement on which these escrow instructions may be based and you shall not rely on any knowledge or understanding you may have of any such Purchase Agreement in ascertaining or performing your duties as escrow holder In connection with any loan transaction, you are authorized to deliver a copy of any Purchase Agreement, supplement or amendment deposited with you to the lender You are authorized and instructed to furnish to any broker or lender identified with this transaction or anyone acting on behalf of such lender any information concerning this escrow copies of all instructions, amendments and statements upon request 9 You shall make no physical inspection of the real property or personal property described in any instruments deposited in, or which is the subject of this escrow You have made no representations or warranties concerning any such real property or personal property and are not to be concerned with nor liable for the condition of real property or personal property 10 At close of escrow, a policy of title insurance is to be secured for benefit of Buyer as provided in Page 1 of the Escrow Instructions and, if applicable, for new encumbrance holder(s) in amount of the encumbrance from the same title company The parties authorize the recordation of any instrument delivered through this escrow if necessary or proper for the issuance of the required policy of title insurance or for the closing of this escrow Funds instructions or instruments received in this escrow may be delivered to, or deposited with, any title insurance company or title company to comply with the terms and conditions of this escrow In the event the Total Consideration and/or the amount of new encumbrances) are changed by the parties during the term of this escrow the liability of the policy(ies) of title insurance to be issued through this escrow are changed accordingly without further instructions required 11 If the date by which any party s performances are due shall be other than your regular business day such performances shall be due on your next succeeding business day ADDITIONAL INSTRUCTIONS ATTACHED HERETO AND MADE A PART HEREOF My initials below represent my agreement and acknowledgment of the foregoing Seller Initials Buyer Initials Page 3 Guardian Escrow, Inc. Rate October 11, 2005 Escrow No 21802 .IB 12 You shall conduct no lien or title search of personal property regarding the sale or transfer of any personal property through this escrow Should the parties desire that you conduct a lien or title search of personal property the parties requesting the same shall dehver separate and specific written escrow instructions to you along with an agreement to pay your additional escrow fees 13 You shall not be responsible in any way whatsoever nor are you to be concerned with any question of usury in any loan or encumbrance, whether new or of record, which may arise dunng the processing of this escrow 14 The parties agree to deliver to you all documents, instruments escrow instructions and funds required to process and close this escrow in accordance with its terms 15 You are instructed to provide title to the subject real property in the condition identified in the escrow instructions by the parttes, which title condition shall be evidenced by that shown in the policy of title insurance secured from the title company selected by the parties, on which you may rely You are not responsible for the contents or accuracy of any beneficiary demands andlor beneficiary statements delivered to you by the existing lienholders You are not to be responsible in any way whatsoever nor to be concerned with the terms of any new loan or the content of any loan documents obtained by any party in connection with this escrow except to order such loan documents into the escrow file, transmit the loan documents to Buyer for execution and transmit the executed loan documents to lender The parties understand and agree that you are not involved nor concerned with the approval and/or processing of any loan or the contents and effect of loan documents prepared by a lender 16 Any pro ration of rentals is to be based on rental statement handed you by the Seller/Grantor You are to consider that Seller/Grantor will collect all rents which fall due prior to the close of escrow, unless he instructs you in wnting to the contrary No adjustment against the Buyer/Grantee on uncollected rents is to be made Any pro ration of taxes is to be based on latest tax statement available You are not responsible for any personal property tax and/or supplemental taxes which may be assessed to the SellerlGrantor or any former owner of the property desenbed herein, nor for the corporation or license tax of any corporation as former owner If this escrow provides for the transfer of water stock at close of escrow unless otherwise stated herein, all encumbrance holders at close of escrow shall be named as pledgee, as their interests appear and said stock, upon reissue after close of escrow is to be delivered to the first pledgee and if no pledgee to the new record owner 17 The parties expressly indemnify and hold you harmless against third party claims for any fees, costs or expenses where you have acted in good faith, with reasonable care and prudence and/or in compliance with these escrow instructions 18 The Federal Tax Reform Act of 1986 as amended, and the California Revenue & Taxation Code require certain transactions to be reported to the Internal Revenue Service and the California State Franchise Tax Board In those transactions Seller will furnish a correct tax identification number to you so you can report this transaction as required by law Seller understands that Seller may be subject to civil or criminal penalties for failure to do so If requested, you are authorized to furnish the Buyer with a copy of Seller's completed State of California Franchise Tax Board Withholding Exemption Certificate and Nonresident Waiver Request for Real Estate Sales Form 597 W, 593 C, 593 L, 593 W or other applicable State of California Franchise Tax Board Withholding Exemption Certificate furnished by Seller 19 The parties agree that you have the responsibilities of an Escrow Holder only and there are no other legal relationships established in the terms and condittons of the escrow instructions In conneetton with this escrow (1) you shall have no duty or responsibility of notifying any of the parties to this escrow of any sale resale, loan, exchange or other transaction involving any of the subject real property or personal property, (2) you shall have no responsibility or duty to disclose any benefit, including but not limited to financial gain realized by any person, firm or corporation involving any of the subject real property or personal property and (3) you shall have no responsibility or duty to disclose any profit realized by any person firm or corporation including but not limited to, any real estate broker, real estate sales agent and/or a party to any other escrow in connection therewith, although such other transaction may be handled by you in this escrow or in another escrow transaction If however, you are instructed in writing by any party, Lender or other entitled person to disclose any sale, resale, loan, exchange or other transaction involving any of the subject real property or personal property or any profit realized by any person firm or corporation to any party to this escrow you shall do so without incurring any liability to any party You shall not be liable for any of your acts or omissions done in good faith nor for any claims, demands losses or damages made or suffered by any party to this escrow, excepting such as may arise through or be caused by your willful neglect or gross misconduct 20 Parties acknowledge that pursuant to the California Revenue & Taxation Code a Change of Ownership Report is required by the county recorder to be completed and affixed to any documents submitted for recording which evidence a conveyance of title The Change of Ownership Reports shall be furnished by you to the applicable parties for completion and execution Parties are aware that if forms are not completed in full signed and returned to you prior to closing penalties will be assessed by the county recorder If any Change of Ownership Report is not filed after the close of escrow within the time limits set forth by the county recorder, or the report is rejected by the county recorder for any reason, severe penalties will be assessed Escrow holder's responsibility with regard to the Preliminary Change of Ownership Report(s) is limited to its delivery of same, as deposited by the parties to the title company named in this escrow ADDITIONAL INSTRUCTIONS ATTACHED HERETO AND MADE A PART HEREOF My initials below represent my agreement and acknowledgment of the foregoing Seller Initials _ _ Buyer Initials Page 4 Guardian Escrow, Inc. Date October 11, 2005 Escrow No 21802 -JB For information and assistance in completing the Change of Ownership form, Buyer may contact the County Recorder and Assessors offices in the county in which the subject property is located 21 The parties shall cooperate with you in carrying out the escrow instructions they deposit with you and completing this escrow The parties shall deposit into escrow upon request, any additional funds instruments documents instructions authonzations or other items that are necessary to enable you to comply with demands made on you by third parties, to secure policies of title Insurance or to otherwise carry out the terms of their instructions and close this escrow Should you, before or after close of escrow, receive or become aware of any conflicting demands or claims with respect to this escrow or the rights of any of the parties hereto, or any money or property deposited herein or affected hereby, you shall have the right to discontinue any or all further acts on your part until such conflict is resolved to your satisfaction, and you shall have the further right to commence or defend any actions or proceedings for the determination of such conflict The parties hereto jointly and severally agree to pay all costs damages judgments and expenses, including reasonable attorneys fees suffered or incurred by you, arising out of connected with or incidental to this escrow, including but without limiting the generality of the foregoing a suit in interpleader brought by you In the event you file a suit in interpleader, you shall ipso facto be fully released and discharged from all obligations further to perform any and all duties imposed upon you in this escrow In consideration of your undertaking to act hereunder I agree to pay, when called upon by you so to do, for all services performed for me together with all charges, expenses, and costs incurred or paid for me by you as customarily allocated unless the Escrow Instructions set forth hereinabove provide to the contrary All of the parties to this escrow, jointly and severally, promise to pay promptly on demand as well as to indemnify you and to hold you harmless from and against all administrative governmental investigations, audit and legal fees, litigation and interpleader costs damages judgments attorneys' fees arbitration costs and fees expenses, obligations and liabilities of every kind (collectively costs ) which in good faith you may incur or suffer in connection with or arising out of this escrow whether said costs arise during the performance of or subsequent to this escrow directly or indirectly and whether at tnal or on appeal in administrative action or in an arbitration You are given a lien upon all the rights titles and interests of the parties and all escrow papers and other property and monies deposited into this escrow to protect your rights and to indemnify and reimburse you You may deduct from my net proceeds any amount I may owe you in any other matter If the parties do not pay any fees, costs or expenses due you under the escrow instructions or do not pay for costs and attorneys fees incurred in any litigation, administrative action and/or arbitration, on demand, they each agree to pay a reasonable fee for any attorney services which may be required to collect such fees or expenses, whether attorneys' fees are incurred before trial at trial on appeal or in arbitration 22 All notices, demands and instructions must be in writing No notice, demand, instruction, amendment supplement or modification of these escrow instructions shall be of any effect in this escrow until delivered in writing to you and mutually executed by all parties All escrow instructions may be executed in counterparts each of which shall be deemed an original regardless of the date of its execution and delivery All such counterparts together shall constitute the same document The parties acknowledge and understand that you, as escrow holder, are not authorized to practice the law nor do you give financial advice The parties are advised to seek legal and financial counsel and advice concerning the effect of these escrow instructions The parties acknowledge that no representations are made by you about the legal sufficiency, legal consequences, financial effects or tax consequences of the escrow instructions 23 Notwithstanding any other provisions in these escrow instructions and in addition to other fees and costs to which you may be entitled the parties, jointly and severally, agree that if this escrow is not consummated within ninety (90) days of the date set for closing, you are instructed to and without further instructions withhold your escrow hold open fee of $50 00 per month from the funds on deposit with you regardless of who deposited such funds The parties, jointly and severally, further agree that if you are for any reason required to hold funds after close of escrow, you are instructed to, and without further instructions, withhold an escrow fee of $50 00 per month from the funds on deposit with you regardless of who deposited such funds The parties irrevocably instruct you to automatically cancel this file without further instructions when all funds on deposit have been disbursed 24 If the conditions of this escrow have not been complied with prior to the expiration of time provided for herein, or any extension thereof, you are nevertheless to complete the escrow as soon as the conditions except as to time have been complied with, unless written demand shall have been made upon you not to complete it Your escrow holder agency shall terminate six (6) months following the date last set for close of escrow and shall be subject to earlier termination by receipt by you of mutually executed cancellation instructions If this escrow has not closed or cancelled within the prescribed six month period you shall have no further obligations as escrow holder except to disburse funds and documents pursuant to wntten escrow instructions or to interplead or otherwise dispose of funds and documents in accordance with a validly issued and validly served order from a court of competent jurisdiction Seller Initials ADDITIONAL INSTRUCTIONS ATTACHED HERETO AND MADE A PART HEREOF My initials below represent my agreement and acknowledgment of Bre foregoing Buyer Initials Page 5 Guardian Escrow, Inc Date October 11, 2005 Escrow No 21802 -JB The parties jointly and severally, agree that if this escrow cancels or is otherwise terminated and not closed, the parties shall pay for any costs and expenses which you have incurred or have become obligated for under these escrow Instructions, including but not limited to, attorneys' fees arbitration fees and costs and reasonable escrow fees for the services rendered by you the parties agree that such costs and expenses shall be paid and deposited in escrow before any cancellation or other termination of this escrow is effective The parties agree that said charges for expenses costs and fees may be apportioned between Buyer and Seller in a manner which, m your sole discretion you consider equitable, and that your decision will be binding and conclusive upon the parties Upon receipt of mutual cancellation instructions or a final order or judgment of a court of competent junsdiction with accompanying writs of execution, levies or garnishments you are instructed to disburse the escrow funds and instruments in accordance with such cancellation instruction order or judgement and accompanying writ and this escrow shall, without further notice be considered terminated and cancelled 25 If any check submitted to you is dishonored upon presentment for payment, you are authorized to notify all parties to the within escrow, their respective real estate brokers/agents and any other person or entity you deem in your sole discretion, necessary to notify 26 The parties agree to release you from any and all liability of any kind or nature and to indemnify you from any loss damages, claims judgments or costs of any kind or nature resulting from or related to the release or discharge of hazardous or toxic wastes on the subject property whether it occurred in the past or present or may occur in the future which release or discharge is in violation of law in excess of any state and federal standards permit requirements andlor disclosure requirements existing at this time or which may exist at a future time The parties represent that they made their own assessment of the condition of the subject property and have not relied on any of your representations in making the assessment The parties are advised to seek independent legal and technical environmental expert advice m assessing the risks associated with potential hazardous or toxic wastes 27 All parties to this escrow understand and agree that the title company named in these escrow 'instruction has been selected by the parties All parties understand and agree Guardian Escrow, Inc assumes no responsibility for any loss or delay encountered in the delivery of the loan funds to escrow holder nor with the payoff of any existing loans and encumbrances, by the said title company, Guardian Escrow Inc is hereby held to be harmless as to any such loss or delay 28 All parties acknowledge being advised that Jeri Bray (1) is an escrow officer and the general manager of Guardian Escrow, Inc , and (2) is an officer and stockholder of Guardian Escrow, Inc , and Inland Brookside Services, Inc , each California corporations 29 In these escrow instructions wherever the context so requires, the masculine gender includes the feminine andlor neuter and the singular number includes the plural 30 The legal descriptions(s), street address(es), if any, and assessor parcel number(s) set forth in this escrow have been furnished by the Seller/Grantor and approved by the Buyer/Grantee on which you may rely 31 You are authorized to destroy or otherwise dispose of any and all documents papers escrow instructions correspondence and records or other matenal constituting or pertaining to this escrow at any time after five (5) years from the date of (I) the close of escrow (2) the date of cancellation or (3) the date of the last activity all without liability and without further notice to the parties GUARDIAN ESCROW, INC , A CALIFORNIA CORPORATION IS LICENSED AS AN ESCROW AGENT BY THE DEPARTMENT OF CORPORATIONS OF THE STATE OF CALIFORNIA ALL PARTIES TO THIS TRANSACTION, JOINTLY AND SEVERALLY, ACKNOWLEDGE RECEIPT OF A COMPLETE COPY OF THE WITHIN ESCROW INSTRUCTIONS AND BY OUR SIGNATURES SET FORTH BELOW, ACKNOWLEDGE THAT WE HAVE READ, UNDERSTAND AND AGREE TO BE BOUND BY THE TERMS AND CONDITIONS CONTAINED HEREIN, IN THEIR ENTIRETY Seller Initials ADDITIONAL INSTRUCTIONS ATTACHED HERETO AND MADE A PART HEREOF My initials below represent my agreement and acknowledgment of the foregoing Buyer Initials Page 6 G) Guardian Escrow, Inc Date October II, 2005 Escrow No 21802 JB PRORATE AND/OR ADJUST THE FOLLOWING AS OF DATE OF CLOSE OF ESCROW There are to be no adjustments or prorations between the parties in this escrow PARTIES ARE AWARE THAT DUE TO PROVISIONS OF PROPOSITION 13 AND SENATE BILL 813 (1983), STATE OF CALIFORNIA, THERE MAY BE SUPPLEMENTAL TAX BILLS IN THE PROCESS OF BEING ISSUED DUE TO ANY RECENT CONSTRUCTION OR CONVEYANCE OF SUBJECT PROPERTY AND IN ALL PROBABILITY THERE WILL BE A SUPPLEMENTAL BILL ISSUED DUE TO THIS CONVEYANCE ESCROW HOLDER CANNOT ASCERTAIN AND WILL NOT BE CONCERNED WITH ANY SUCH MATTERS IN THIS TRANSACTION Buyer's Signature: CITY OF REDLANDS, a municipal corproatio ( ' By. .n US;1 PEPPLER,or ATTEST By, Lorri oyzer, i+'¢lerk Address Attention City Manager P 0 Box 3005 Redlands, CA 92373 The foregoing terms, provisions, conditions and instructions are hereby approved and accepted in their entirety and concurred in by me I will hand you necessary documents called for on my part to cause title to be shown as set out herein, which you are authorized to deliver when you hold or have caused to be applied to funds set forth herein within the time as herein provided You are authorized to pay on my behalf my recording fees, charges for evidence of title as called for whether or not this escrow is consummated except those the buyer agreed to pay You are hereby authorized to pay bonds, assessments, taxes, and any liens of record, including prepayment penalties, if any, to show title as called for Seller's Signatures. TONY LOUAY LOUKA BRENDA EVANS LOUKA Address 306 Edgemont Drive, Redlands, CA 92373 - - END OF INSTRUCTIONS - Page 7 Escrow No 21802 -JB Exhibit "A" A PORTION OF THE WEST ONE-HALF OF THE ORTHEAST TOWNSHIP 2 SOL ONE-QUARTER OF TH E NORTHEAST ONE-QUARTER OF SECTION 11, SAN BERNARDINO BERNARDINO, STATS FWEST RCALIFORNIA, !DESCRIBED AS FOLLOWS, O I IN THE ITY OF OWS, COUNTY OF SAN COMMENCING AT THE NORTHEAST CORNER OF SAID WEST ONE-HALF OF THE NORTHEAST ONE-QUARTER OF THE NORTHEAST ONE-QUARTER OF SECTION 11, 8SAID CORNER ALSO BEING THE NORTHVvESTERLY CORNER OF MAP NO 226 AS PER PARCEL MAPBOOK 91PAGES 25 AND 28, RECORDS OF SA DLCOUNTY; THENCE ALONG THE EAST LINE OF SAID WEST ONE-HALF SOUTH 0°22'26 EAST 11 51 FEET TO8THE RU POINT OF PARCEL MAP, SAID 8226, ST LINE ALSO BEING THE WEST PARCEL THENCESOUTHWEST CORNER OF SAID PARCEL MAP NO 82282'28' EAST 57 41 FEET 70 THE THENCE ON A LINE PERPENDICULAR TO SAID EAST LINE SOUTH 89°37'32" WEST 21 83 FEET TO THE EASTERLY RIGHT-OF-WAY OF EDGEMONT DRIVE, 50 FEET WIDE, AS SHOWN ON AMENDED DNBERNARDINOACT NO 13103, COUNTY, RECORDED IN MAP BOOK 225, PAGES 69-72, RE THENE NORTH SAID 89°37'32" EASTERLY EAST 20 12, MORE RIGHT-OF-WAY ESS,TO9THEI TRUE P 57 OINT OF THENCE BEGINNING. DESCRIBED AREA CONTAINS 1,204 SQUARE FEET CARSON L STORER, P L S. EXPIRATION DATE JUNE 30, 2006 Escrow No 21802 -JB Scale:1" =10' as w East Right -Of -way of Edgemoat Drive Exhibit "B" 1' a N 89°37'32"E N 00 •efeChaiN VO 0 z Lot 8 MB 225 Pg. 69-72 20.12 P o.C. N.E. Corner of west one -hal of the N.E. one-quarter of the 7.0 Northeast one-quarter of sec. 11, T28, R3W, SEEM Parcel Map 8226 PMB 91/25-26 Parcel 4 T.P.O.B. Area of Description 21.83 S 89°37'32"W Basis of bearing being the west line of Parcel 4 Parcel Map 8226 PMB 91/2 being S 0°22'28"E. SW Corner Parcel Map 8226 Carson L. Storer, P.L.S 3913 Escrow No 21802-3B (Page 1 of 5 Pages) Exhibit "C° RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO City Clerk s Office City of Redlands P 0 Box 3005 Redlands, CA 92373 A P N 0294-161 08 Space Above This Line for Recorder's Use Only Order No 02121604-RK4 Escrow No 21802 -JB EASEMENT DEED FOR ROADWAY AND UTIILITIES PURPOSES For valuable consideration, receipt of which is hereby acknowledged TONY LOUAY LOUKA and BRENDA EVANS-LOUKA, husband and wife as joint tenants, hereby grant to the CITY OF REDLANDS, a municipal corporation and political subdivision of the State of California, and its successors and assigns ("City") (1) an irrevocable, exclusive, permanent and perpetual easement together with the right to forever maintain, operate improve, alter relocate, reconstruct inspect repair, occupy and use and otherwise install necessary or convenient appurtenances therefor for the construction and maintenance of public and private above ground and underground utility facilities as determined reasonable or necessary by the City, together with all rights of ingress and egress, and (2) an irrevocable exlusive permanent and perpetual easement, together with the right to construct operate, maintain, replace and renew a street and roadway, and otherwise install necessary or convenient appurtenances therefor for street and roadway purposes including ingress and egress for vehicular and/or pedestrian and other traffic in, over and under that certain real property ("Easement Area ) described on Exhibit A and shown on Exhibit "B" attached hereto Document Date October 11, 2005 TONY LODAY LOUKA BRENDA EVANS LOUKA Escrow No 21802 -JB (Page 2 of 5 Pages) 00-07-2005 04.37Pz Fro,-1SR1EFER EEGINEERIii6 Exhibit "C" + T-372 P 002/002 F-003 Exhibit "A" A PORTION OF THE WEST ONE-HALF OF THE NORTHEAST ONE-QUARTER OF THE NORTHEAST ONE-QUARTER OF SECTION 11, TOWNSHIP 2 SOUTH, RANGE 3 WEST. SAN BERNARDINO , IN THE CITY OF REDLANDS BERNARDINO, STATE OFR CIDIANALIFORNIA, DESCRIBED AS FOLLOWS, COUNTY OF SAN COMMENCING AT THE NORTHEAST CORNER OF SAID WEST ONE-HALF OF THE NORTHEAST ONE-QUARTER OF THE NORTHEAST ONE-QUARTER OF SECTION 11, SAID CORNER ALSO BEING THE NORTHWESTERLY CORNER OF PARCEL MAP NO. 8226, AS PER PARCEL MAP HOOK 91, PAGES 25 AND 26, RECORDS OF SAID COUNTY, THENCE ALONG THE EAST LINE OF SAID WEST ONE-HALF SOUTH 01122'28" EAST 11 51 FEET TO THE TRUE POINT OF BEGINNING. SAID EAST LINE ALSO BEING THE WEST PARCEL BOUNDARY OF SAID PARCEL MAP NO 8226, THENCE CONTINUING ALONG SAID EAST LINE SOUTH 0°22'28" EAST 67 41 FEET TO THE SOUTHWEST CORNER OF SAID PARCEL MAP NO 8226 THENCE ON A LINE PERPENDICULAR TO SAID EAST LINE SOUTH 89°37'32" WEST 21 83 FEET TO THE EASTERLY RIGHT OF -WAY OF EDGEMONT DRIVE 50 FEET WIDE, AS SHOWN ON AMENDED TRACT NO 13103, RECORDED IN MAP BOOK 225, PAGES 69-72, RECORDS OF SAN BERNARDINO COUNTY, THENCE ALONG SAID EASTERLY RIGHT-OF-WAY NORTH 01°19'42" EAST 57 44 FEET THENCE NORTH 89°37'32" EAST 2012, MORE OR LESS, TO THE TRUE POINT OF BEGINNING DESCRIBED AREA CONTAINS 1,204 SQUARE FEET CARSON L. STORER, P L S. EXPIRATION DATE JUNE 30, 2006 Escrow No 21802 JB (Page 3 of 5 Pages) Scale: 1" = 10' East Right -Of -Way of Edgemont Drive Lot 8 MB 225 Pg 69-72 ce Exhibit k1C" Exhibit "B" P.O.C. N.E. Corner of west one-half of the N.E. one-quarter of the Northeast one-quarter 01 sec. 11, T2S, R3W, SEEM 1.4 N 89°37'32"E 20.12 Area of Description 21.83 S 89°37'32"W Parcel Map 8226 PMB 91125-26 Parcel 4 T.P a dge404• 4. Basis of bearing being the west line of Parcel 4 Parcel Map 8226 PMB 91125 - being 5 0°22'28"E. SW Corner Parcel Map 8226 Carson L. Storer. P L S 3913 \°F CALI Escrow No 21802 313 (Page 4 of 5 Pages) Exhibit "C" CERTIFICATE OF ACCEPTANCE This is to certify that the interest in real property conveyed to the City of Redlands a Municipal Corporation dated October ., 2005 from Tony Louka and Brenda Evans-Louka is hereby accepted and the City consents to recordation thereof by its duly authorized officer Dated October 2005 City Manager City of Redlands Escrow No 21802 JB (Page 5 of 5 Pages) Exhibit "C" NOTARY ACKNOWLEDGEMENT STATE OF CALIFORNIA ) ) ss COUNTY OF ) On this day of , 2005, before me, the undersigned, a Notary Public to and for said State, personally appeared personally known to me or proved to me on the basis of satisfactory evidence to be the persons whose names are subscribed to the within instrument and acknowledged to me that they executed the same in their authorized capacities, and that by their signatures on the instrument the persons, or the entity upon behalf of which the persons acted, executed the instrument WITNESS my hand and official seal Notary Public in and for Said State Guardian Escrow, Inc, 101 East Redlands Blvd Suite 180 Redlands CA 92373 (909) 793-3147 FAX (909)798-4606 CITY OF REDLANDS Attention Office of the City Clerk P 0 Box 3005 Redlands, CA 92373 RECEIVED OCT 0 2 200E Redlands City Cie, Date September 28, 2006 Escrow No 21802413 RE Louka Roadway Easement Ladies and Gentlemen We enclose the following for your records Policy of Title Insurance issued by Commonwealth Land Title Company for your records It has been a pleasure to handle your escrow, and we look forward to the opportunity to provide future escrow services which you may require Guardian Escrow, Inc jb IL Commonwealth POLICY OF TITLE INSURANCE Issued by Commonwealth Land Title Insurance Company SCHEDULE A Policy/Fife No 02121604 Amount of Insurance $6,000 00 Premium $375 00 Endorsement Fees $0 Date of Policy June 8, 2006 at 8.00 A.M. 1 Name of Insured City of Redlands, a municipal corporation and Political subdivision of the State of California, and its successors and assigns 2 The estate or interest in the land described herein and which is covered by this policy is AN EASEMENT INTEREST 3 The estate or interest referred to herein is at the Date of Policy vested in City of Redlands, a municipal corporation and Political subdivision of the State of California, and its successors and assigns 4 The land referred to in this policy is situated in the County of San Bernardino, State of California, and is more particularly described in Exhibit "A' attached hereto and made a part hereof by "" ` 64 r�^ Authorized Signatory CLTA Standard Owners Coverage 1990 Page 1 File No 02121604 EXHIBIT "A" All that certain real property situated in the County of San Bernardino, State of California, described as follows A portion of the West One -Half of the Northeast One -Quarter of the Northeast One -Quarter of Section 11, Township 2 South, Range 3 West, San Bernardino Meridian, in the City of Redlands, County of San Bernardino, State of California, described as follows Commencing at the Northeast corner of said West One -Half of the Northeast One -Quarter of the Northeast One -Quarter of Section 11, said corner also being the Northwesterly corner of Parcel Map No. 8226, as per Parcel Map Book 91, pages 25 and 26 records of said county, Thence along the East line of said West One -Half South 00°22 28" East 11 51 feet to the True Point of Beginning, said East line also being the West Parcel boundary of said Parcel Map No. 8226, Thence continuing along said East line South 00°22'28" East 57 41 feet to the Southwest corner of said Parcel Map No 8226; Thence on a line perpendicular to said East line South 89°37'32" West 21 83 feet to the Easterly Right -of -Way of Edgemont Drive, 50 00 feet wide, as shown on amended Tract No. 13103, recorded in map Book 225, pages 69 through 72, Records of San Bernardino County, Thence along said Easterly Right -of Way North 01°19'42" East 57 44 feet, Thence North 89°37'32" East 20 12 feet, more or less to the True Point of Beginning CLTA Standard Owners Coverage -1990 Page 2 File No 02121604 SCHEDULE B EXCEPTIONS FROM COVERAGE THIS POLICY DOES NOT INSURE AGAINST LOSS OR DAMAGE (AND THE COMPANY WILL NOT PAY COSTS, ATTORNEY 5 FEES OR EXPENSES) WHICH ARISE BY REASON OF PART 1 1 Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the public records 2 Any facts, rights, interest or claims which are not shown by the public records but which could be ascertained by an inspection of the land or which may be asserted by persons in possession thereof 3 Easements, hens or encumbrances, or claims thereof, which are not shown by the public records 4 Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the public records 5 (a) Unpatented mining claims, (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof, (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b) or (e) are shown by the public records END OF SCHEDULE B - PART 1 CLTA Standard Owners Coverage -1990 Page 3 File No. 02121604 SCHEDULE B PART II A Property taxes, including general and special taxes, personal property taxes, if any, and any assessments collected with taxes, to be levied for the fiscal year 2006 - 2007 which are a lien not yet payable B Supplemental or escaped assessments of property taxes, if any, assessed pursuant to the Revenue and Taxation Code of the State of California 1 An easement for the purpose shown below and rights incidental thereto as set forth in a document Granted to the City of Redlands, a Municipal Corporation Purpose water pipe lines Recorded October 1, 1947 in Book 2126, Page 139 of Official Records Affects said land more particularly described therein 2 An easement for the purpose shown below and rights incidental thereto as set forth in a document Granted to George Henry Ide and Harold G Stein Purpose roadways and water lines Recorded November 13, 1948 in Book 2320, Page 299 of Official Records Affects said land more particularly described therein 3 The fact that by Resolution of the Board of Supervisors of the County of San Bernardino, State of California, Resolution No 4112 dated October 17, 1985 and recorded on October 23, 1985 as Instrument No 85-263030 of Official Records Annexation to the City of Redlands was approved Reference is made to said document for full particulars 4 An easement for the purpose shown below and rights incidental thereto as set forth in document Granted to Southern California Edison Company, a Corporation Purpose Public utilities Recorded December 1, 1989 as Instrument No 89-454296 of Official Records Affects Said easement is described as follows Various strips of land 6 00 feet in width, lying within all those lots bounded on one or more sides by roads or highways, a sideline of each of said strips shall in all cases be coincidental with the right of way line of said roads and highways Also, various strips of land 4 00 feet in width, lying on each side of all side lot lines of said lots Restrictions on the use, by the owners of said land, of the easement area as set out in the easement document shown above CLTA Standard Owners Coverage -1990 Page 4 File No 02121604 SCHEDULE B — PART 11 Continued 5 Covenants, conditions and restrictions as set forth in the document Recorded February 13, 1990 as Instrument No 90-58566 of Official Records This exception omits any covenant, condition or restriction based on race, color, religion, sex, handicap, familial status or national origin, unless and only to the extent that the covenant, condition or restriction (a) is not in violation of state or federal law, (b) is exempt under 42 U S C Section 3607 or (c) relates to a handicap but does not discriminate against handicapped people Said covenants, conditions and restrictions provide that a violation thereof shall not defeat the lien of any mortgage or deed of trust made in good faith and for value Among other things, said document provides for Easements over a portion of said land for the purpose therein shown, and rights incidental thereto 6 An easement for the purposes shown below and rights incidental thereto as shown or as offered for dedication on the recorded map of said tract Purpose right of way for Edgemont Drive Affects as shown on Map of said Tract 7 A deed of trust to secure an indebtedness in the amount shown below, and any other obligations secured thereby Amount $537,000 00 Dated April 23, 2003 Trustor Tony L Louka and Brenda Evans-Louka, husband and wife as joint tenants Trustee CTC Real Estate Services Beneficiary Countrywide Home Loans, Inc , a New York Corporation Recorded April 30, 2003 as Instrument No 2003-0285476 of Official Records An assignment of the beneficial interest under said deed of trust which names As Assignee CitiMortgage, Inc Recorded May 1, 2003 as Instrument No 2003-0288001 of Official Records An agreement which states that this instrument was subordinated To Easement Deed Recorded' June 8, 2006 as Instrument No 2006-0392581, of Official Records By Agreement Recorded June 8, 2006 as Instrument No 2006-0392580, of Official Records 8 An easement for the purpose shown below and rights incidental thereto as set forth in a document Granted to City of Redlands, a municipal corporation and Political subdivision of the State of California, and its successors and assigns Purpose Roadway and Utilities Recorded June 8, 2006 as Instrument No 2006-0392581, of Official Records CLTA Standard Owners Coverage -1990 Page 5 SCHEDULE B -- PART 11 Continued END OF SCHEDULE B - PART II Endorsements NONE CLTA Standard Owners Coverage -1990 Page 6 File No 02121604 PRIVACY POLICY NOTICE LandAmerica Financial Group, Inc and its family of affiliated companies ("LandAmerica") respect the privacy of our customers' personal information This Notice explains the ways in which we may collect and use personal information under the LandAmerica Privacy Policy LandAmerica provides title insurance and other real estate services through its affiliates The three largest members of the LandAmerica family, Commonwealth Land Title Insurance Company, Lawyers Title Insurance Corporation, and Transnation Title Insurance Company, and their title affiliates, issue title policies and handle real estate closings across the country You may review a complete list of the LandAmerica family of affiliates covered by this Privacy Policy on our website at http //www landam com under the privacy policy link or request a copy be sent to you from the address listed below The LandAmerica Privacy Policy applies to all LandAmerica customers, former customers and applicants Please visit our website for an explanation of our privacy practices relating to electronic communication What kinds of information we collect Depending on the services you use, the types of information we may collect from you, your lender, attorney, real estate broker, public records or from other sources include* • information from forms and applications for services, such as your name, address and telephone number, • information about your transaction, including information about the real property you bought, sold or financed such as address, cost, existing liens, easements, other title information and deeds, • with closing, escrow, settlement or mortgage lending services or mortgage loan servicing, we may also collect your social security number as well as information from third parties including property appraisals, credit reports, loan applications, land surveys, real estate tax information, escrow account balances, and sometimes bank account numbers or credit card account numbers to facilitate the transaction, and • information about your transactions and experiences as a customer of ours or our affiliated companies, such as products or services purchased and payments made How we use and disclose this information We use your information to provide you with the services, products and insurance that you, your lender, attorney, or real estate brokers have requested We disclose information to our affiliates and unrelated companies as needed to carry out and service your transaction, to protect against fraud or unauthorized transactions, for institutional risk control, to provide information to government and law enforcement agencies and as otherwise permitted by law As required to facilitate a transaction, our title affiliates record documents that are part of your transaction in the public records as a legal requirement for real property notice purposes We do not share any nonpublic personal information we collect from you with unrelated companies for their own use We do not share any information regarding your transaction that we obtain from third parties (including credit report information) except as needed to enable your transaction as permitted by law We may also disclose your name, address and property information to other companies who perform marketing services such as letter production and mailing on our behalf, or to other financial service companies (such as insurance companies, banks, mortgage brokers, credit companies) with whom we have joint marketing arrangements Additionally, some LandAmerica affiliates may share information about their transaction and experiences with you in order to identify opportunities to market other LandAmerica services or products that may be useful to you How we protect your information We maintain administrative, physical, electronic and procedural safeguards to guard your nonpublic personal information We reinforce our privacy policy with our employees and our contractors Joint marketers and third parties service providers who have access to nonpublic personal information to provide marketing or services on our behalf are required by contract to follow appropriate standards of security and confidentiality Title insurance agents may be covered by this policy If your transaction goes through a title insurance agent that is not part of the LandAmerica family, the agent handling your transaction should provide you with the agent's own privacy policy or evidence that the agent has adopted our policy If you have any questions about this privacy statement or our practices at LandAmerica, please email us at customerservice@landam.com or write us at LandAmerica Privacy, P 0 Box 27567, Richmond, VA 23261 Form 3391-6 (Eff June 2006) STANDARD COVERAGE POLICY OF TITLE INSURANCE Issued by Commonwealth Land Title Insurance Company Commonwealth POLICY NUMBER Commonwealth Land Title insurance Company is a member of the 02121604 LandAmerica family of title insurance underwriters SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B AND THE CONDITIONS AND STIPULATIONS, COMMONWEALTH LAND TITLE INSURANCE COMPANY a Nebraska corporation herein called the Company insures as of Date of Policy shown in Schedule A, against loss or damage, not exceeding the Amount of Insurance stated in Schedule A sustained or incurred by the insured by reason of 1 Title to the estate or interest described in Schedule A being vested other than as stated therein, 2 Any defect in or lien or encumbrance on the title, 3 Unmarketability of the title, 4 Lack of right of access to and from the land, and in addition, as to an insured lender only 5 The invalidity or unenforceability of the lien of the insured mortgage upon the title 6 The priority of any lien or encumbrance over the lien of the insured mortgage said mortgage being shown in Schedule B in the order of its priority 7 The invalidity or unenforceability of any assignment of the insured mortgage provided the assignment is shown in Schedule B or the failure of the assignment shown in Schedule B to vest title to the insured mortgage in the named insured assignee free and clear of all liens The Company will also pay the costs attorneys fees and expenses incurred in defense of the title or the lien of the insured mortgage, as insured but only to the extent provided in the Conditions and Stipulations IN WITNESS WHEREOF, COMMONWEALTH LAND TITLE INSURANCE COMPANY has caused its corporate name and seal to be hereunto affixed by its duly authorized officers, the Policy to become valid when countersigned by an authorized officer or agent of the Company COMMONWEALTH LAND TITLE INSURANCE COMPANY Attest By President EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys fees are expenses which arise by reason of 1 (a) Any law ordinance or governmental regulations (including but not limited to building or zoning laws ordinances, or regulations) restricting, regulating, prohibiting or relating to (I) the occupancy use or enjoyment of the land, (ii) the character dimensions or location of any improvement now or hereafter erected on the land, (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part or (iv) environmental protection or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, hen or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy (b) Any governmental police power not excluded by (a) above except to the extent that a notice of the exercise thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy 2 Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge 3 Defects liens, encumbrances, adverse claims or other matters (a) whether or not recorded in the public records at Date of Policy, but created, suffered, assumed or agreed to by the insured claimant (b) not known to the Company not recorded in the public records at Date of Policy but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy (c) resulting in no loss or damage to the insured claimant (d) attaching or created subsequent to Date of Policy or (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the insured mortgage or for the estate or interest insured by this policy 4 Unenforceability of the lien of the insured mortgage because of the inability or failure of the insured at Date of Policy, or the inability or failure of any subsequent owner of the indebtedness to comply with the applicable doing business laws of the state in which the land is situated 5 Invalidity or unenforceability of the lien of the insured mortgage, or claim thereof, which arises out of the transaction evidenced by the insured mortgage and is based upon usury or any consumer credit protection or truth in lending law 6 Any claim which arises out of the transaction vesting in the insured the estate of interest insured by this policy or the transaction creating the interest of the insured lender, by reason of the operation of federal bankruptcy state insolvency or similar creditors' rights laws Standard Coverage Policy Form 1183 2Z ORIGINAL Valid only if Schedules A and B and Cover are attached CONDITIONS AND STIPULATIONS 1 DEFINITION OF TERMS The following terms when used in this policy mean (a) Insured the insured named in Schedule A and subject to any rights or defenses the Company would have had against the narned insured those who succeed to the interest of the named insured by operation of law as distinguished from purchase including but nal limited to heirs distributees devisees survivors personal representatives next of kin or corporate or fiduciary successors The term Insured also includes (i) the owner of the indebtedness secured by the insured mortgage and each successor in ownership of the indebtedness except a successor who is an obligor under the provisions of Section 12(c) of these Conditions and Stipulations (reserving however all rights and defenses as to any successor that the Company would have had against any predecessor Insured unless the successor acquired the indebtedness as a purchaser for value wilhout knowledge of the asserted defect hen encumbrance adverse claim or other matter insured against by this policy as affecting title to the estate or Interest in the land) (u) any governmental agency or governmental instrumentality which is an insurer or guarantor under an insurance contract or guaranty insuring or guaranteeing the indebtedness secured by the insured mortgage, or any part thereat whether named as an insured herein or not (iii) the parties designated in Section 2(a) of these Conditions and Stipulations (b) insured claimant an insured claiming loss or damage (c) insured lender" the owner of an insured mortgage (d) insured mortgage a mortgage shown in Schedule B the owner of which is named as an insured in Schedule A (e) knowledge or known actual knowledge not constructive knowledge or nonce which may be imputed to an insured by reason of the public records as defined in this policy or any other records which impart constructive notice of matters affecting the land (1) land the land descnbed or referred to in Schedule A and improvements affixed thereto which by law constitute real property The term land does not Include any properly beyond the lines of the area described or referred to In Schedule A nor any right title interest estate or easement in abutting streets roads avenues alleys lanes ways or waterways but nothing herein shall modify or krait the extent to which a right of access to and from the land is insured by this policy (g) mortgage mortgage deed of trust trust deed or other security instrument (h) public records records established under state statutes at Date of Policy for the purpose of imparting constructive notice of matters relating to real property to purchasers for value and without knowledge (i) unmarketabihiy of the Tide an alleged or apparent matter affecting the lisle to the land not excluded or excepted from coverage which would entitle a purchaser of the estate or interest described in Schedule A or tire insured mortgage to be released from the obligation to purchase by virtue of a contractual condition requiring the delivery of marketable title 2 CONTINUATION OF INSURANCE (a) After Acquisition of Title by Insured Lender If this policy insures the owner of the indebtedness secured by the insured mortgage the coverage of this policy shall continue in force as of Date of Policy in favor of (1) such insured tender who acquires all or any part of the estate or Interest in the land by foreclosure trustee's sale conveyance in lieu of foreclosure or other legal manner which discharges the lien of the insured mortgage (u) a transferee of the estate or interest so acquired from an insured corporation provided the transferee is the parent or whollyowned subsidiary of the insured corporation and their corporate successors by operation of law and not by purchase subject to any rights or defenses the Company may have against any predecessor insureds and (in) any governmental agency or governmental instrumentality which acquires all or any part of the estate or interest pursuant to a contract of insurance or guaranty insuring or guaranteeing the indebtedness secured by the insured mortgage (b) After Conveyance of Title by an tnsured The coverage of this policy shall continue in force as of Date of Policy in favor of an insured only so long as the insured retains an estate or interest in the land or holds an indebtedness secured by a purchase money mortgage given by a purchaser from the insured or only so long as the insured shalt have liability by reason of covenants of warranty made by the insured in any transfer or conveyance of the estate or interest This policy shall not continue in force in favor of any purchaser from an insured of either (i) an estate or interest in the land or (u) an indebtedness secured by a purchase money mortgage given to an insured (c) Amount of insurance The amount of insurance after the acquisition or after the conveyance by an insured lender shall in neither event exceed the least of (t) The amount of insurance slated In Schedule A (i!) The amount of the principal of the indebtedness secured by the insured mortgage as of Dale of Policy interest thereon expenses of foreclosure, amounts advanced pursuant to the insured mortgage to assure compliance with laws or to protect the lien of the insured mortgage prior to the time of acquisition of the estate or interest in the land and secured thereby and reasonable amounts expended to prevent deterioration of improvements but reduced by the amount of all payments made or (111) The amount paid by an governmental agency or governmental instrumentality !1 the agency or the instrumentality is the insured claimant in the acquisition of the estate or interest in satisfaction of its insurance contract or guaranty 3 NOTICE OF CLAIM TO BE GIVEN BY INSURED CLAIMANT An insured shall notify the Company promptly in writing (i) in case of any litigation as set forth in 4(a) below (€i) in case knowledge shall come to an insured hereunder of any claim of title or Interest which is adverse to the title to the estate or interest or the lien of the insured mortgage as insured and which might cause loss or damage for which the Company may be liable by virtue of this policy or (iii) if title to the estate or interest or the hen of the insured mortgage, as insured is rejected as unmarketable If prompt. notice shall not be given to the Company then as to that Insured all liability of the Company shall terminale with regard to the matter or matters for which prompt notice Is required provided however that failure to notify the Company shall in no case prejudice the rights of any insured under this policy unless the Company shall be prejudiced by the failure and then only to the extent of the prejudice 4 DEFENSE AND PROSECUTION OF ACTIONS, DUTY OF INSURED CLAIMANT TO COOPERATE (a) Upon written request by an insured and subject to the options contained in Section 6 of these Conditions and Stipulations, the Company at its own cost and without unreasonable delay shall provide for the defense of such insured in litigation in which any third party asserts a claim adverse to the line or interest as insured but only as to those slated causes of action alleging a defect lien or encumbrance or other matter insured against by this policy The Company shall have the right to select counsel or its choice (subject to the right of such insured to object for reasonable cause) to represent the insured as to those stated causes of action and shall not be liable for and will not pay the fees of any other counsel The company will not pay any fees costs or expenses incurred by ar insured in the defense of those causes of action which allege matters not insured against by this policy (b) The Company shall have the right, at its own cost to institute and prosecute any action e proceeding or to do any other act which in its opinion may be necessary or desirable to establish the title to the estate or interest or the lien of the insured mortgage as insured or to prevent or reduce los' or darnage to an insured The Company may lake any appropriate action under the terms of thi, policy whether or not it shall be liable hereunder and shall not thereby concede liability or waive an provision of this policy If the Company shall exercise its rights under this paragraph it shall do si diligently (c) Whenever the Company shall have brought an action or interposed a defense a required or permitted by the provisions of [his policy the Company may pursue any litigation to fine determination by a court of competent jurisdiction and expressly reserves the right in its soli discretion to appeal from any adverse judgment or order (d) In all cases where this policy permits or requires [he Company to prosecute or provide to the defense of any action or proceeding an insured shall secure to the Company the right to sI prosecute or provide defense in the action or proceeding and all appeals therein and permit the Company to use at its option the narne of such insured for this purpose Whenever requested by the Company an insured al the Company's expense shall give the Company all reasonable aid (i) in an action or proceeding securing evidence obtaining witnesses prosecuting or defending the action c proceeding or effecting settlement and (i!) in any other lawful acl which in the opinion of the Compri may be necessary or desirable to establish the title to the estate or interest or the hen of the insure, mortgage as insured If the Company is prejudiced by the failure of an insured to furnish the require, cooperation the Company's obligations to such insured under the policy shall terminate including an liability or obligation to defend prosecute, or continue any Litigation with regard to the matter c matters requiring such cooperation 5 PROOF OF LOSS OR DAMAGE In addition to and after the notices required under Section 3 of these Conditions and Stipulation have been provided the Company a proof of loss or damage signed and sworn to by each insure claimant shall be furnished to the Company within 90 days after the insured claimant shall ascertai the facts giving rise to the loss or damage The proof of loss or damage shall descnbe the defect m c lien or encumbrance on the title or other matter insured against by this policy which constitutes Ih basis of loss or damage and shall slate to the extent possible the basis of calculating the amount 0 the loss or damage If the Company is prejudiced by the failure of an insured claimant to provide th required proof of loss or damage the Company's obligations to such insured under the policy sha terminale including any liability or obligation to defend prosecute or continue any litigation wit regard to the matter or matters requiring such proof of loss or damage In addition an insured claimant may reasonably be required to submit to examination Linde oath by any authorized representative of the Company and shall produce for examination inspectio and copying at such reasonable limes and places as may be designated by any authorize representative of the Company, all records hooks ledgers checks correspondence and memorand, whether bearing a dale before or alter Date of Policy which reasonably pertain to the loss or damagr Further, if requested by any authorized representative of the Company the insured claimant shall grar its permission in writing for any authorized representative of the Company to examine inspect an copy all records books ledgers checks correspondence and memoranda in the custody or control a third party which reasonably pertain to the loss or damage Alf information designated a confidential by an insured claimant provided to the Company pursuant to this Section shall not b disclosed to others unless in the reasonable judgment of the Company it is necessary in th administration of the claim Failure of an insured claimant la submit for examination under nail produce other reasonably requested information or grant permission to secure reasonably necessai information from third parties as required in this paragraph unless prohibited by law or government regulation shall terminate any liability of the Company under this policy as to that insured for Ilii claim 6 OPTIONS TO PAY OR OTHERWISE SETTLE CLAIMS TERMINATION OF LIABILITY In case of a claim under this policy the Company shall have the following additional options (a) To Pay or Tender Payment of the Amount of Insurance or to Purchase th Indebtedness (1) to pay or tender payment of the amount or insurance under this policy togelhe with any costs attorneys fees and expenses incurred by the insured claimant, which were authorize by the Company up to the time of payment or lender of payment and which the Company is obligate to pay or (11) in case loss or damage is claimed under this policy by the owner of Ili indebtedness secured by the insured mortgage to purchase the indebtedness secured by the insure mortgage for the amount owning thereon together with any costs, attorneys fees and expense incurred by the insured claimant which were authorized by the Company up to the time of purcha=. and which the Company is obligated 10 pay If the Company offers to purchase the indebtedness as herein provided the owner of Ili indebtedness shall transfer assign and convey the indebtedness and the insured mortgage logelhi with any collateral security 10 the Company upon payment therefor Upon the exercise by the Company of the option provided for in paragraph a(i) all liability ar obligations to the insured under this policy other than to make the payment required in that paragrap shall terminate including any liability or obligation to defend prosecute or continue any litigation ar the policy shall be surrendered to the Company for cancellation Upon the exercise by the Company of the option provided for in paragraph a(€1) the Company obligation to an insured Lender under this policy for the claimed loss or damage, other than tt payment required to be made shall terminate including any liability or obligation to defend prosecu or continue any litigation (b) To Pay or Otherwise Settle with Parties Other than the Insured or With the Insure Claimant (i) to pay or otherwise settle with other parties for or in the name of an irisin claimant any claim insured against under [his policy together with any costs attorneys fees ar expenses incurred by the insured claimant which were authorized by the Company up to the lime payment and which the Company is obligated to pay or (r) to pay or otherwise settle with the insured claimant the loss or damage provids for under this policy together with any costs attorneys fees and expenses incurred by the insure claimant which were authorized by the Company up to the time of payment and which the Company obligated to pay Upon the exercise by the Company of either of the options provided for in paragraphs b(t) b(ii) the Company's obligations to the insured under this policy for the claimed loss or damage 011 than the payments required to be made shall terminale including any liability or obligation to deter prosecute or continue any litigation Conditions and Stipulations Continued CONDITIONS AND STIPULATIONS - CONTINUED 7 DETERMINATION AND EXTENT OF LIABILITY This policy is a contract of indemnity against actual monetary loss or damage sustained or incurred by the insured claimant who has suffered loss or damage by reason of matters insured against by this policy and only to the extent herein described (a) The liability of the Company under this policy to an insured lender shall not exceed the least of (1) the Amount of Insurance stated in Schedule A or, if applicable the amount of insurance as defined in Section 2 (c) of these Conditions and Stipulations (ii) the amount of the unpaid principal indebtedness secured by the insured mortgage as limited or provided under Section 8 of these Conditions and Stipulations or as reduced under Section 9 of theses Conditions and Stipulations at the time the loss or damage insured against by this policy occurs together with interest Thereon or (iii) the difference between the value of the insured estate or interest as insured and the value of the insured estate or interest subject to the defect hen or encumbrance insured against by this policy (b) In the event the insured fender has acquired the estate or interest in the manner described in Section 2(a) of these Conditions and Stipulations or has conveyed the title, then the liability of the Company shall continue as set forth in Section 7(a) of these Conditions and Stipulations (c) The liability of the Company under this policy to an insured owner of the estate or interest in the land described in Schedule A shall not exceed the least of (i) the Amount of Insurance stated in Schedule A or (11) the difference between the value of the insured estate or interest as insured and the value of the insured estate or interest subject to the defect, lien or encumbrance insured against by this policy (d) The Company will pay only those costs, attorneys fees and expenses incurred in accordance with Section 4 of these Conditions and Stipulations 8 LIMITATION OF LIABILITY (a) If the Company establishes the title or removes the alleged defect lien or encumbrance or cures the tack of a right of access to or from the land or cures the claim of unmarketabitity of title or otherwise establishes the lien of the insured mortgage all as insured, in a reasonably diligent manner by any method Including litigation and the completion of any appeals therefrom it shall have fully performed its obligations with respect to that matter and shall not be liable for any loss or damage caused thereby (b) In the event of any litigation including litigation by the Company or with the Company's consent, the Company shall have no liability for loss or damage until there has been a final determination by a court of competent jurisdiction, and disposition of all appeals therefrom, adverse to the title, or, if applicable to the lien of the insured mortgage as insured (c) The Company shall not be liable for loss or damage to any insured for liability voluntarily assumed by the insured in settling any claim or suit without the prior written consent of the Company (d) The Company shall not be liable to an insured lender for (i) any Indebtedness created subsequent to Date of Policy except for advances made to protect the lien of the insured mortgage and secured thereby and reasonable amounts expended to prevent deterioration of improvements or (u) construction loan advances made subsequent to Date of Policy except construction loan advances made subsequent to Date of Policy for the purpose of financing in whole or in part the construction of an improvement to the land which at Date of Policy were secured by the insured mortgage and which the insured was and continued to be obligated to advance at and after Date of Policy 9 REDUCTION OF INSURANCE REDUCTION OR TERMINATION OF LIABILITY (a) All payments under this policy except payments made for costs attorneys' fees and expenses, shall reduce the amount of insurance pro tanto However as to an insured lender, any payments made prior to the acquisition of title to the estate or interest as provided in Section 2(a) of these Conditions and Stipulations shall not reduce pro tanto the amount of insurance afforded under This policy as to any such insured except to the extent that the payments reduce the amount of the indebtedness secured by the insured mortgage (b) Payment in pari by any person of the principal of the indebtedness or any other obligation secured by the insured mortgage or any voluntary partial satisfaction or release of the insured mortgage to the extent of the payment satisfaction or release, shall reduce the amount of insurance pro tanto The amount of insurance may thereafter be increased by accruing interest and advances made to protect the lien of the insured mortgage and secured thereby with interest thereon provided in no event shall the amount of insurance be greater than the Amount of Insurance stated in Schedule A (c) Payment in full by any person or the voluntary satisfaction or release of the insured mortgage shall terminate all liability of the Company to an insured lender except as provided in Section 2(a) of these Conditions and Stipulations 10 LIABILITY NONCUMULATIVE It is expressly understood that the amount of insurance under this policy shall be reduced by any amount the Company may pay under any policy insuring a mortgage to which exception is taken in Schedule B or to which the insured has agreed assumed or taken subject or which is hereafter executed by an insured and which is a charge or lien on the estate or interest described or referred to in Schedule A and the amount so paid shall be deemed a payment under this policy to the insured owner The provisions of this Section shall not apply to an insured lender, unless such insured acquires title to said estate or interest in satisfaction of the indebtedness secured by an insured mortgage 11 PAYMENT OF LOSS (a) No payment shall be made without producing this policy for endorsement of the payment unless the policy has been lost or destroyed in which case proof of loss or destruction shall be furnished to the satisfaction of the Company (b) When liability and the extent of loss or damage has been definitely fixed in accordance with these Conditions and Stipulations the loss or damage shall be payable within 30 days thereafter 12 SUBROGATION UPON PAYMENT OR SETTLEMENT (a) The Company's Right of Subrogation Whenever the Company shall have settled and paid a claim under this policy, all right of subrogation shall vest in the Company unaffected by any act of the insured claimant The Company shall be subrogated to and be entitled to all rights and remedies which the insured claimant would have had against any person or property in respect to the claim had this policy not been issued If requested by the Company the insured claimant shall transfer to the Company all rights and remedies against any person or property necessary in order to perfect this right of subrogation The insured claimant shall permit the Company to sue compromise or settle in the name of the insured claimant and to use the name of the insured claimant in any transaction or litigation involving these rights or remedies If a payment on account of a claim does not fully cover the loss of the insured claimant the Company shall be subrogated (1) as to an insured owner to all rights and remedies in the proportion which the Company's payment bears to the whole amount of the loss and (1) as to an insured lender to all rights and remedies of the insured claimant after the insured claimant shall have recovered its principal interest, and costs of collection If loss should result from any act of the insured claimant as stated above, that ac shall not void this policy, but the Company, in that event shall be required to pay only that part of any losses insured against by this policy which shall exceed the amount, i any lost to the Company by reason of the impairment by the insured claimant of She Company's right of subrogation (b) The Insured's Rights and Limitations Notwithstanding the foregoing the owner of the indebtedness secured by al insured mortgage provided the priority of the lien of the insured mortgage or it, enforceability is not affected may release or substitute the personal liability of any debto or guarantor or extend or otherwise modify the terms of payment or release a portion 0 the estate or interest from the lien of the insured mortgage, or release any collators security for the indebtedness When the permitted acts of the insured claimant occur and the insured ha knowledge of any claim of title or interest adverse to the title to the estate or interest c the priority or enforceability of the lien of an insured mortgage as insured the Compan shall be required to pay only that part of any losses insured against by this policy whic shall exceed the amount, if any lost to the Company by reason of the impairment by th insured claimant of the Company's right of subrogation (c) The Company's Rights Against Non insured Obligors The Company's right of subrogation against non insured obligors shall exist an shall include, without limitation the rights of the insured to indemnities guaranties othE policies of insurance or bonds, notwithstanding any terms or conditions contained i those instruments which provide for subrogation rights by reason of this policy The Company's right of subrogation shall not be avoided by acquisition of a insured mortgage by an obligor (except an obligor described in Section 1(a)(ii) of thes Conditions and Stipulations) who acquires the insured mortgage as a result of a indemnity, guarantee other policy of insurance or bond and the obligor will not be a insured under this policy, notwithstanding Section 1(a)(i) of these Conditions ar Stipulations 13 ARBITRATION Unless prohibited by applicable law either the Company or the insured ms demand arbitration pursuant to the Title Insurance Arbitration Rules of the Americ- Arbitration Association Arbitrable matters may include, but are not limited to, ar controversy or claim between the Company and the insured arising out of or relating this policy, any service of the Company in connection with its issuance or the breach of policy provision or other obligation Ali arbitrable matters when the Amount of lnsurani is $1 000 000 or less shall be arbitrated at the option of either the Company or 11 insured All arbitrable matters when the Amount of Insurance is in excess of $1 000,01 shall be arbitrated only when agreed to by both the Company and the insured Arbitrahe pursuant to this policy and under the Rules in effect on the date the demand 1 arbitration is made or, at the option of the insured the Rules in effect at Date of Pali shall be binding upon the parties The award may include attorneys fees only if the las of the state in which the land is located permit a court to award attorneys' fees to prevailing party Judgment upon the award rendered by the Arbitrator(s) may be enter in any court having jurisdiction thereof The law of the situs of the land shall apply 10 an arbitration under the Ti insurance Arbitration Rules A copy of the Rules may be obtained from the Company upon request 14 LIABILITY LIMITED TO THIS POLICY, POLICY ENTIRE CONTRACT (a) This policy together with all endorsements if any, attached hereto by t Company is the entire policy and contract between the insured and the Company interpreting any provision of this policy, this policy shall be construed as a whole (b) Any claim of loss or damage whether or not based on negligence and wh arises out of the status of the lien of tiie insured mortgage or of the title to the estate interest covered hereby or by any action asserting such claim shall be restricted to 1 policy (c) No amendment of or endorsement to this policy can be made except le writing endorsed hereon or attached hereto signed by either the President a V President, the Secretary an Assistant Secretary, or validating officer or authoro signatory of the Company 15 SEVERABILITY In the event any provision of the policy is held invalid or unenforceable un applicable law the policy shall be deemed not to include that provision and all of provisions shall remain in full force and effect 15 NOTICES WHERE SENT All notices required to be given the Company and any statement in wri required to be furnished the Company shall include the number of this policy and shall addressed to Consumer Affairs Department P 0 Box 27567 Richmond Virg 23261 7567 Form B 1183 2Z CLTA STANDARD COVERAGE POLICY OF TITLE INSURANCE California Land Title Association (1990) Issued by Commonwealth Land Title Insurance Company Commonwealth Land Title Insurance Company €s a member of the LandAmenca family of title insurance underwriters iii.i, >. a ,me ca Commonwealth LandAmerica Financial Group, Inc 101 Gateway Centre Parkway Richmond Virgnia 23235-5153 www landam.com THANK YOU. Title Insurance provides for the protection of your real estate investment We suggest you keep this policy in a safe place where it can be readily available for future reference If you have questions about title insurance or the coverage provided by this policy, contact the office that issued this policy, or you may call or write Commonwealth Land Title Insurance Company Consumer Affairs P 0 Box 27567 Richmond, Virginia 23261 7567 telephone, toll free 800 446 7086 web www landam coni We thank you for choosing to do business with Commonwealth Land Title Insurance Company, and look forward to meeting your future title insurance needs Commonwealth Land Title Insurance Company is a member of the LandAmerica family of title insurance unde€wnters Jem Commonwealth Ptn. Tract No.13103,M.B.223/58--61 Amending Map, M B 225/69-72 s53 19 40 a6 25 City of Redlands Tax Rate Area 5023 CD E -D G -E — Ptri 1.01 "A ASS=SSEO 00 PACE 11 Assessor's Map Ptn N 1/2, N E 1/4, Sec 11 Book B02 4 Page eme C16 T,2S , R 3W 0294-- 1 6 1=100 FEB 0 4 2004 00015E0 Notice of Environmental Actions - On motion of Councilmember Peppier, seconded by Councilmember Gil, the report on pending environmental actions received from surrounding jurisdictions was acknowledged as received Purchase and Sale Agreement and Escrow Insti uctions - Edgemont Drive - On motion of Councilmember Peppier, seconded by Councilmembei Gil, the City Council unanimously approved a purchase and sale agreement and escrow instruction in the amount of $6,000 00 for City acquisition of a 1,204 square foot easement to extend Edgemont Drive for public access and utilities on property owned by Tony Louka and Brenda Evans-Louka located at 306 Edgemont Drive and authoi ized the Mayor to execute, and the City Clerk to attest to, the document on behalf of the City Integrated Management Program Demonstration Project Agreement - On motion of Counciimember Peppier, seconded by Counciimember Gil, the City Council unanimously approved a one-year time extension of the Integrated Management Program Demonstration Project agreement with the San Bernardino Valley Water Conservation District, and Bernardino Valley Municipal Water District, City of San Bernardino and the East Valley Water District and authorized the Mayor to execute, and the City Clerk to attest to, the document on behalf of the City Agreement - 1350 Zone Reservoir Site - On motion of Councilmember Peppier, seconded by Councilmember Gil, the City Council unanimously approved an agreement to furnish engineenng/surveying services with Hicks and Hartwick, Inc for the Parcel Map No 17558 and Street Improvement Plans for San Bernardino Avenue and Webster Street for the 1350 Zone Reservoir site and to support the potential sale of property to the San Bernardino Valley Municipal Water District for an amount not to exceed $21,000 00 and authorized the Mayor to execute, and the City Clerk to attest to, the document on behalf of the City MOU - Storage Trailer - Fire Department - On motion of Councilmember Peppier, seconded by Coancilmember Gil, the City Council unanimously approved a memorandum of understanding with Inland Counties Emergency Medical agency for the placement and location of a storage trailer containing bioterrorism preparedness and response program equipment and supplies on City property located at 1270 West Park Avenue (Redlands Corporate Yard) and authorized the Mayor to execute, and the City Clerk to attest to, the document on behalf of the City Contract - Trimester Use of Force Training - On motion of Councilmember Peppier, seconded by Councilmember Gil, the City Council unanimously approved a contract with the County of San Bernardino for the San Bernardino County Sheriffs Department to provide trimester use of force training to October 4, 2005 Page 2