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Contracts & Agreements_221-2006_CCv0001.pdf
�U Lois Lauer, Inc. Natural Hazard Disclosure ReportTM Report Number:2006092500262 Property Address: Vacant Land, APN: 0175 011 76 0000 San Bernardino, San Bernardino County, CA Date: 9/25/2006 Statutory Natural Hazard Disclosure Statement The transferor and his or her agent(s) disclose the following information with the knowledge that even though this is not a warranty, prospective transferees may rely on this Information in deciding whether and on what terms to purchase the subject property. Transferor hereby authorizes any agent(s) representing any principal(s) in this action to provide a copy of this statement to any person or entity in connection with any actual or anticipated sale of the property, The following are representations made by the transferor and his or her agent(s)based on their knowledge and maps drawn by the State.This information is a disclosure and is not Intended to be part of any contract between the transferee and the transferor.THIS REAL PROPERTY LIES WITHIN THE FOLLOWING HAZARDOUS AREA(S): A SPECIAL FLOOD HAZARD AREA(Any type Zone'A'or'V)designated by the Federal Emergency Management Agency. Yes No X Do not know and Information not available from local jurisdiction AN AREA OF POTENTIAL FLOODING shown on a dam failure inundation map pursuant to Section 8589.5 of the Govemment Code. Yes No X Do not know and information not available from local jurisdiction A VERY HIGH FIRE HAZARD SEVERITY ZONE pursuant to Section 51178 or 51179 of the Government Code.The owner of this property is subject to the maintenance requirements of Section 51182 of the Government Code. Yes__ No A WILDLAND AREA THAT MAY CONTAIN SUBSTANTIAL FOREST FIRE RISK AND HAZARDS pursuant to Section 4125 of the Public Resources Code. The owner of this property is subject to the maintenance requirements of Section 4291 of the Public Resources Code. Additionally,it is not the state's responsibility to provide fire protection services to any building or structure located within the wildlands unless the Department of Forestry and Fire Protection has entered into a cooperative agreement with a local agency for those purposes pursuant to Section 4142 of the Public Resources Code. Yes No X AN EARTHQUAKE FAULT ZONE pursuant to Section 2622 of the Public Resources Code. Yes No_ (X A SEISMIC HAZARD ZONE pursuant to Section 2696 of the Public Resources Code. Yes(Landslide Zone)_Yes(Liquefaction Zone)_ No_ Map not yet released by state X THESE HAZARDS MAY LIMIT YOUR ABILITY TO DEVELOP THE REAL PROPERTY,TO OBTAIN INSURANCE,OR TO RECEIVE ASSISTANCE AFTER A DISASTER.THE MAPS ON WHICH THESE DISCLOSURES ARE BASED ESTIMATE WHERE NATURAL HAZARDS EXIST.THEY ARE NOT DEFINITIVE INDICATORS OF WHETHER OR NOT A PROPERTY WILL BE AFFECTED BY A NATURAL DISASTER.TRANSFEREE(S)AND TRANSFEROR(S)MAY WISH TO OBTAIN PROFESSIONAL ADVICE REGARDING THOSE HAZARDS AND OTHER HAZARDS THAT MAY AFFECT THE PROPERTY. Signature of Transferor(Seller) Date Signature of Transferor(Seger) Date Signature of Agent Date Signature of Agent Date Check only one of the following: Transferor(s)and thea agent(s)represent that the information herein is true and correct to the best of their knowledge as of the date signed by the transferor(s)and agent(s). QTransferor(s)and thea agent(s)acknowledge that they have exercised good faith in the selection of a Thad-party report provider as required in Civil Code Section 1103.7,and that the representations made in this Natural Hazard Disclosure Statement aro based upon information provided by the independent thad- party disclosure provider as a substituted disclosure pursuant to Civil Code Section 1103.4.Neither transferor(s)nor thea agent(s)(1)has Independently verified the information contained in this statement and report or(2)is personally aware of any errors or inaccuracies In the information contained on the statement.This statement was prepared by the provider below / Third-Party Disclosure Provider(s) �- Date 9/25/2006 Rept.No.2006092500262 Scott RoI`lIn,Sr.Vice President Fist American Natural Hazard Disclosures Transferee represents that he or she has read and understands this document.I(We)also have read and understand the added local hazard,airport, 1915 Bond Act, Mello-Roos, military ordnance, commercial zoning, and Meg 's Law disclosures, as well as the mold and radon advisories and the map cover page contained in this report.Pursuant to Civil Coda S 11D3.8, representations made in this Natural Hazard Disclosure Statement do not constitute all of the transferor's or agent's disclosure obligati rensact' ATTEST Signature ofTransferee(s Date_0ctober 2, 2006 Jon Harrison, Mao torrie er gate October 2, 2006 Cityy'Crier, Additional Signatures Required-See Section 4,TAX DISCLOSURE 2Ei'Ct1t and Section 5'EnviroCheckTM Disclosure Report Statutory Form Lois Lauer,Inc. 1998 Orange Tree Lane Redlands,CA 92374 Phone: (909) 748-7019 ©2006 e � i Lois Lauer, Inc. Natural Hazard Disclosure ReportTIM Report Number:2006092500262 Property Address:Vacant Land, APN: 0175 011 76 0000 San Bernardino, San Bernardino County, CA Date: 9/25/2006 Statutory Natural Hazard Disclosure Statement The transferor and his or her agent(s) disclose the following information with the knowledge that even though this is not a warranty, prospective transferees may rely on this information in deciding whether and on what terms to purchase the subject property. Transferor hereby authorizes any agent(s) representing any principal(s) in this action to provide a copy of this statement to any person or entity in connection with any actual or anticipated sale of the property. The following are representations made by the transferor and his or her agent(s)based on their knowledge and maps drawn by the State.This information is a disclosure and is not intended to be part of any contract between the transferee and the transferor.THIS REAL PROPERTY LIES WITHIN THE FOLLOWING HAZARDOUS AREA(S): A SPECIAL FLOOD HAZARD AREA(Any type Zone"A"or"V")designated by the Federal Emergency Management Agency. Yes No X Do not know and information not available from local jurisdiction AN AREA OF POTENTIAL FLOODING shown on a dam failure inundation map pursuant to Section 8589.5 of the Government Code. Yes No X Do not know and information not available from local jurisdiction A VERY HIGH FIRE HAZARD SEVERITY ZONE pursuant to Section 51178 or 51179 of the Government Code.The owner of this property is subject to the maintenance requirements of Section 51182 of the Government Code. Yes X No A WILDLAND AREA THAT MAY CONTAIN SUBSTANTIAL FOREST FIRE RISK AND HAZARDS pursuant to Section 4125 of the Public Resources Code. The owner of this property is subject to the maintenance requirements of Section 4291 of the Public Resources Code. Additionally,it is not the state's responsibility to provide fire protection services to any building or structure located within the wildlands unless the Department of Forestry and Fire Protection has entered into a cooperative agreement with a local agency for those purposes pursuant to Section 4142 of the Public Resources Code. Yes No X AN EARTHQUAKE FAULT ZONE pursuant to Section 2622 of the Public Resources Code. Yes No X A SEISMIC HAZARD ZONE pursuant to Section 2696 of the Public Resources Code. Yes(Landslide Zone)_Yes(Liquefaction Zone)_ No_ Map not yet released by state X THESE HAZARDS MAY LIMIT YOUR ABILITY TO DEVELOP THE REAL PROPERTY,TO OBTAIN INSURANCE,OR TO RECEIVE ASSISTANCE AFTER A DISASTER.THE MAPS ON WHICH THESE DISCLOSURES ARE BASED ESTIMATE WHERE NATURAL HAZARDS EXIST.THEY ARE NOT DEFINITIVE INDICATORS OF WHETHER OR NOT A PROPERTY WILL BE AFFECTED BY A NATURAL DISASTER.TRANSFEREE(S)AND TRANSFEROR(S)MAY WISH TO OBTAIN PROFESSIONAL ADVICE REGARDING THOSE HAZARDS AND OTHER HAZARDS THAT MAY AFFECT THE PROPERTY. Signature of Transferor(Seller) Date Signature of Transferor(Seller) Date Signature of Agent Date Signature of Agent Date Check only one of the following: F]Transferor(s)and their agent(s)represent that the information herein is true and correct to the best of their knowledge as of the date signed by the transferor(s)and agent(s). XO Transferor(s)and their agent(s)acknowledge that they have exercised good faith to the selection of a third—party report provider as required in Civil Code Section 1103.7,and that the representations made in this Natural Hazard Disclosure Statement are based upon information provided by the independent third— party disclosure provider as a substituted disclosure pursuant to Civil Code Section 1103.4.Neither transferor(s)nor their agent(s)(1)has independentty verified the information contained in this statement and report or(2)is personalty aware of any errors or inaccuracies in the information contained on the statement.This statement was prepared by the provider below Third—Party Disclosure Provider(s) Date 9/25/2006 Rept.No.2006092500262 Scott Rob .Vice President First American Natural Hazard Disclosures Transferee represents that he or she has read and understands this document.I(We)also have read and understand the added local hazard,airport, 1915 Sond Act, Mello-Roos, military ordnance, commercial zoning, and Megan's Law disclosures, as well as the mold and radon advisories and the map cover page contained in this report.Pursuant to Civil Code Section 1103.8,the representations made in this Natural Hazard Disclosure Statement do not constitute all of the transferor's or agent's disclosure obligations in this transaction. Signature of Transferee(s) Date Signature of Transferee(s) Date Additional Signatures Required—See Section 4,TAX DISCLOSURE REPORT and Section 5 EnvirciCheckTM Disclosure Report Statutory Form Lois Lauer,Inc. 1998 Orange Tree Lane Redlands,CA 92374 Phone: (909)748-7019 02006 Lois Lauer, Inc. Natural Hazard Disclosure ReportTM Report Number:2006092500262 Property Address:Vacant Land, APN: 0175 011 76 0000 San Bernardino, San Bernardino County, CA Date: 9/25/2006 Summary Declaration of Liability Provisions First American Natural Hazard Disclosures ("FANHD"), a subsidiary of The First American Corporation, hereby declares that Recipients of a natural hazard disclosure report issued by a Member Company ('Report') pursuant to California Civil Code §1103 et seq. for a transaction are provided the following assurances and protections. Recipients • Buyers, Sellers and their respective real estate agents and brokers involved in the sale of the property for which the Report was issued. Member Companies • JCP Property Disclosure Reports • LGS reports • Property Disclosure Services, Inc. • FANHD, Inc, • California Property Disclosure • Safe Real Estate • PhD(Professional Hazard Disclosure) • NHD(Natural Hazard Disclosures) Protections All Recipients of a Report shall enjoy the following assurances and protections if their Report contains an error which results in damages as defined in the Report("Error )upon proper tender of the claim: (1) FANHD will resolve the claim promptly and in good faith. (2) FANHD will defend a Recipient against legal action brought against that Recipient as a result of the Error or otherwise resolve the Error without economic loss to the Recipient. (3) Recipients will enjoy the benefits of amounts received by FANHD from its errors and omissions ("E&O")insurance carrier as a result of the Error. (4) To the extent that economic loss resulting from the Error is not paid by the E&O insurance proceeds, FANHD shall be liable for any remaining loss. Recipients are entitled to rely on the provisions of the Report as of the close of escrow for the transaction for which said Report was issued. ass nweaerr By: First American Scott Roecklein,Sr,Vice President Date:9/2512006 ;,- NATURAL HArAlt*01SCLOSUItit Confirmation of Coverage Lois Lauer,Inc, 1998 Orange Tree Lane Redlands,CA 92374 Phone:(909)748-7019 CD2006 r Lois Lauer, Inc. Natural Hazard Disclosure ReportTM Report Number: 2006092500262 Property Address:Vacant Land, APN: 0175 011 76 0000 San Bernardino, San Bernardino County, CA Date: 9/25/2006 The Lois Lauer, Inc. Reg)ortTm Map Cover Page Statutory Form Confirmation of Coverage SUMMARY AND INDEX OF DISCLOSURES AND ADVISORIES For a complete explanation of the disclosures summarized below,refer to the sections and pages indicated. SECTION 1 State level Statutory Zone Disclosures Determination Flood A SPECIAL FLOOD HAZARD AREA OUT See Section 1 Page 1 AN AREA OF POTENTIAL FLOODING OUT See Section 1 Page 1 Fire A VERY HIGH FIRE HAZARD SEVERITY ZONE IN See Section 1 Page 1 A WILDLAND FIRE AREA(SRA) OUT See Section 1 Page 2 Seismic AN EARTHQUAKE FAULT ZONE OUT See Section 1 Page 2 A SEISMIC HAZARD LANDSLIDE ZONE NIA* See Section 1 Page 2 A SEISMIC HAZARD LIQUEFACTION ZONE NIA* See Section 1 Page 2 *NIA=The map is not yet released by the State. SECTION 2 County Level Natural Hazard Disclosures FAULT OUT See Section 2 Page 1 LANDSLIDE IN See Section 2 Page 1 Located in an area of Moderate to High Landslide Susceptibility. LIQUEFACTION POTENTIAL OUT See Section 2 Page 1 City Level Natural Hazard Disclosures The jurisdiction that the subject property is located in is either in an unincorporated area or does not have officially adopted mapped information available at this time from which a geologic determination can be made. SECTION 3 OTHER DISCLOSURES,ADVISORIES AND TERMS AND CONDITIONS Other Zone Disclosures Determination Commerciall industrial LOCATED WITHIN 1 MILE OF A COMMERCIAL OR INDUSTRIAL SITE YES See Section 3 Page 1 Index Page i Lois Lauer,Inc. 1998 Orange Tree Lane Redlands,CA 92374 Phone:(909)748-7019 ©2006 Lois Lauer, Inc. Natural Hazard Disclosure ReportTM Report Number:2006092500262 Property Address:Vacant Land, APN: 0175 011 76 0000 San Bernardino, San Bernardino County, CA Date: 9/25/2006 Military Ordnance FORMER MILITARY ORDNANCE SITE DISCLOSURE NOT IN See Section 3 Page 1 Airports AIRPORT NOISE 65 DECIBEL ZONE NOT IN See Section 3 Page 2 AIRPORT INFLUENCE AREA NOT IN See Section 3 Page 2 Megan's Law See Section 3 Page 3 San Francisco Bay Conservation and Development Commission Disclosure NOT IN See Section 3 Page 3 Advisories METHAMPHETAMINE CONTAMINATED PROPERTY DISCLOSURE ADVISORY See Section 3 Page 4 Mold Advisory See Section 3 Page 4 Radon Advisory See Section 3 Page 5 Energy Efficiency Advisory See Section 3 Page b Endangered Species Act Advisory See Section 3 Page 6 FANHD Services Section SECTION 4 CALIFORNIA PROPERTY TAX DISCLOSURE REPORT <<Requires Additional Signature on Section 4, Page 1>> Summary of Current Property Tax Charges Notice of Special Tax and Assessment Pursuant to Section 1102.6b of the California Civil Code Accelerated Foreclosure Notice Senior Citizen Exemptions Explanation Mandatory Notice of Supplemental Property tax Bills) SEE TAX REPORT Pursuant to Section 1102.6c of the California Civil Code TABLE OF CONTENTS Property Tax Calculator Supplemental Tax Sill Estimator Future Property Tax Charges Description of Current Property Tax Charges Index Page ii Lois Lauer,Inc. 1998 Orange Tree Lane Redlands,CA 92374 Phone: (909)748-7019 ct)2006 Y44 Lois Lauer, Inc. Natural Hazard Disclosure ReportT"" Report Number: 2006092500262 Property Address:Vacant Land, APN: 0175 01176 0000 San Bernardino, San Bemardino County, CA Date: 9/25/2006 SECTION 1 Lois Lauer, Inc.STATUTORY MAP READING DETERMINATIONS AND DISCUSSIONS SUMMARY The statutory Natural Hazard Disclosure Statement on page one of this report does not provide for informing purchasers if the property is only partially within any of the delineated zones or provide additional flood zone information which could be very important to the disclosure process. This summary of Lois Lauer,int.'s map reading used to complete the statutory form in this report is provided here to give buyers the additional information they may need to help them in the decision making process and to place the information in perspective. 0 0 o SPECIAL FLOOD HAZARD AREA o a o Determination Zone X: NOT in a special flood hazard area.Area of 500-year flood;Areas of 100-year flood with average depths of less than 1 foot or with drainage areas less than 1 square mile; and areas protected by levees from 100-year floods. Lenders are not federally required to have homeowners purchase and maintain flood insurance for property in this zone designation. Discusslon Property in a Special Flood Hazard Area"A"or"V"is subject to flooding in a"100-year rainstorm."Federally connected lenders are required to have homeowners maintain flood insurance in these zones.A 100-year flood occurs on average once every 100 years, but may not occur in 1,000 years or may occur in successive years.Other types of flooding,such as dam failure,are not considered in developing these zones. In some cases, the insurance requirement may be waived or modified by obtaining a "Letter of Map Revision" (LOMR) or "Letter of Map Amendment"(LOMA)from the Federal Emergency Management Agency(FEMA).This might be possible where flooding is shallow and fill was placed on the site, appropriate flood control measures were taken,or only the lot and no part of the structure is in the zone. Contact FEMA directly for more information.Flood insurance for properties in Zones B,C,X or D is available but is not required. Zones A,AO,AE,AH,A1-A30:Area of"100-year"flooding-a 1%or greater chance of annual flooding. Zones V,V1-V30:Area of"100-year"flooding in coastal(shore front)areas subject to wave action. Zone B:Area of moderate flood risk.These are areas between the"100"and"500"year flood-risk levels. Zones X:An area of moderate to minimal flood risk. Zones C,D:NOT IN an area of"I 00-year"flooding.Area of minimal(Zone C)or undetermined(Zone D)flood hazard. PUBLIC RECORD:Official Flood Insurance Rate Maps("FIRM")compiled and issued by FEMA pursuant to 42 United States Code§4001,et seq. 0 0 o AREA OF POTENTIAL FLOODING(DAM FAILURE) d Determination NOT In an Area of Potential Flooding Caused By Dam Failure according to the maps adopted by The State of California Office of Emergency Services. Discussion These areas are subject to potential flooding in the event of a sudden and total failure of a dam and injury could occur as a result.Most areas are defined assuming an instantaneous dam failure with a full reservoir. However, dams rarely fail instantaneously and reservoirs are not always filled to capacity.Not all dams in the state have inundation zones mapped.There may be exceptional conditions where such a map was not required by the OES;therefore,the zones are not delineated. PUBLIC RECORD:Official dam inundation maps adopted by The State of California Office of Emergency Services('OES')pursuant to California Government Code§8589.5 0 0 o VERY HIGH FIRE HAZARD SEVERITY ZONE(VHFHSZ) o 0 0 Determination IN an area of Very High Fire Hazard Severity Zone as defined on the State level maps (Gov. Code 51178). A local agency may exclude or include additional fire zones at their option. Concerned patties should contact their local fire services for more Information. Discussion VHFHSZs are defined by the Califomia Department of Forestry and Fire Protection (CDF) and local fire authorities in "Local Responsibility Areas"where fire suppression is the responsibility of a local fire department In these zones properties may have a higher risk for fire damage and are required to have a"Class A"roof for new construction or replacement of existing roofs.In addition,the property must be maintained in a fire-resistant condition through adequate vegetation clearance around and above the structure,spark screens on chimneys and stovepipes, leaf removal from roofs,and other basic fire-safety practices.Contact your fire department for a complete list of requirements and exceptions. PUBLIC RECORD:Official maps issued by the California Department of Forestry and Fire Protection(CDF)pursuant to California Public Resources Code§51178. Section 1 —Page 1 Lois Lauer,Inc. 1998 Orange Tree Lane Redlands,CA 92374 Phone:(909)748-7019 02006 Lois Lauer, Inc. Natural Hazard Disclosure ReportTM Report Number: 2006092500262 Property Address:Vacant Land, APN: 0175 011 76 0000 San Bernardino, San Bernardino County, CA Date: 9/25/2006 0 0 o WILDLAND FIRE AREA(STATE RESPONSIBILITY AREA) o o 0 Determination NOT in an official State Responsibility Area. Fire protection services for structures in this area are provided by local fire departments. Discussion A wild land area where the CDF's fire protection services are responsible for suppressing fires is called a"State Responsibility Area" (SRA). These are generally rural areas where a significant wild land fire potential exists. Unless the county has assumed the fire suppression responsibility or has an agreement with a local fire agency,property owners in an SRA are responsible for organizing structural fire protection services.Such information is not available on maps;therefore,it can't be provided here. For very isolated properties with no local fire services there may be significant fire risk or only seasonal fire services. Property owners in an SRA are required to maintain adequate vegetation clearance around and above the structure,spark screens on chimneys and stovepipes,and other basic fire-safety practices.Contact your fire department for a complete list of requirements and exceptions. PUBLIC RECORD: Official maps issued by the California Department of Forestry and Fire Protection (CDF) pursuant to California Public Resources Code§4125. 0 0 o EARTHQUAKE FAULT ZONE o 0 0 Determination NOT in an official Earthquake Fault Zone. There are no mapped active fault traces on the property. See the Alquist- Priolo Earthquake Fault explanation section for additional information. Discussion Earthquake Fault Zones are delineated and adopted by California as part of the Alquist-Priolo Earthquake Fault Zone Act of 1972. Property in an Earthquake Fault Zone does not necessarily have a fault trace existing on the site. Earthquake Fault Zones are areas or bands delineated on both sides of known active earthquake faults. In some places,the zones are more than one-quarter of a mile wide.The potential for"fault rupture"damage(ground cracking along the fault trace)is relatively high only if a structure is located directly on a fault trace. If a structure is not on a fault trace,shaking will be the primary effect of an earthquake.During a major earthquake,shaking will be strong in the vicinity of the fault and may be strong at some distance from the fault depending on soil and bedrock conditions.It is generally accepted that properly constructed wood-frame houses are resistant to shaking damage. PUBLIC RECORD: Official earthquake fault zone or special study zone maps approved by the State Geologist and issued by the California Department of Conservation,California Geological Survey pursuant to California Public Resources Code§2622. 0 0 o SEISMIC HAZARD MAPPING ACT ZONE o 0 0 Determination In an area not included on the current inventory of Official Seismic Hazard Maps. Official maps covering portions of San Bernardino County have been released. For more information on this Act or when maps may become available, visit the California Geological Survey website at http://gmw.consrv.ca.gov/shmp/ Discussion Seismic Hazard Zone maps delineate areas subject to earthquake hazards.New development in a Seismic Hazard Zone is only permitted if it can be shown that mitigation makes the site acceptably safe. Maps are only available for limited areas now, but will eventually cover all of California. The hazards addressed are or will be: liquefaction, enhanced ground shaking, earthquake induced landslides, and various other ground failures.The first release of maps only addresses liquefaction and/or landslide zones. Liquefaction Hazard Zones are areas where there is a potential for, or an historic occurrence of liquefaction. Liquefaction is a rare soil phenomenon that can occur when loose,water saturated,fine-grained sands,and silty sands that lie within 50 feet of the ground surface,are shaken in a significant earthquake.The soil temporarily becomes liquid-like and structures may settle unevenly. Earthquake-Induced Landslide Hazard Zones are areas where there has been a recent landslide, or where the local slope, geological, geotechnical,and ground moisture conditions indicate a potential for landslides as a result of earthquake shaking. PUBLIC RECORD: Official earthquake fault zone or special study zone maps approved by the State Geologist and issued by the Califomia Department of Conservation,Califomia Geological Survey pursuant to Califomia Public Resources Code§2696. Section 1 —Page 2 Lois Lauer,Inc. 1998 Orange Tree Lane Redlands,CA 92374 Phone:(909)748-7019 02006 Lois Lauer, Inc. y Natural Hazard Disclosure ReportTM Report Number: 2006092500262 Property Address:Vacant Land, APN: 0175 011 76 0000 San Bemardino, San Bemardino County, CA Date: 9/25/2006 SECTION 2 COUNTY AND CITY NATURAL HAZARD DISCLOSURE STATEMENT The following natural hazard disclosures are provided to give local-level Seismic Safety information for the subject property. This information may be used by the local jurisdiction relative to making decisions regarding new development or additional construction.The agencies and jurisdictions who develop the official maps do not necessarily define or delineate hazards in the same way.A site can be in a hazard zone from one source and not in a hazard zone from another source. San Bernardino County Geologic and Seismic Zone Determination Based on the officially adopted county-level Seismic Safety Element natural hazard maps,the subject property is: Located in an area of Moderate to High Landslide Susceptibility as shown on the maps used in this report. This zone designation is considered a geologic hazard area. In an area of no identified fault or liquefaction hazard (according to adopted County Hazard Overlay Maps).See the County Geologic Zones Explanation included with this report for more information. NOTE: If the site is in a locally mapped hazard zone or if information of concern exists in another source, the property may require a geologic study prior to any new or additional construction. The disclosures above are material facts and should prudently be disclosed to buyers in addition to the Statutory Natural Hazard Disclosures. Additional sources of information which are not officially adopted, may be available at the local jurisdiction that are not reported here. SAN BERNARDINO COUNTY GEOLOGIC ZONES DISCUSSION The County of San Bernardino,separately from the State and Federal governments,has officially produced Geologic Hazard Overlay maps that identify earthquake fault,liquefaction and slope stability hazards that are recognized at the local level.Those hazard maps are incorporated into the Seismic Safety Element of the General Plan,adopted by the County Board of Supervisors in 1991.The local-level disclosure in this report was based on the following official County map(s): "San Bernardino Geologic Hazard Overlay Maps," prepared by San Bemardino County Planning Department(a part of the Safety Element of the General Plan). The hazard zones delineated on the above map source, in addition to the statutorily-required State and Federal hazard maps, are typically considered by the County when approving land use and development permit applications under County jurisdiction.Additional maps exist in the General Plan and other maps, including updated versions of the above-referenced map(s), may exist in the files of specific County departments.Those additional map sources were not consulted for this disclosure because parcel-level details cannot be resolved at the scale and quality of the available official map,or the map is inappropriate for application to this report,or the map has not yet been officially adopted and incorporated into the County's Safety Element.As mapping technology advances,this company later may determine that some additional map sources become usable for parcel-level disclosure. The mapped County hazard zones represent evaluations of generalized hazard information.Positional accuracy of map data is plus or minus 150 feet,at best. Because of this degree of positional accuracy,some properties identified as being within hazard zones may not actually be so,while others identified as not being within hazard zones may actually be in a geologic hazard zone. Moreover, any specific site within a mapped zone could be at less or more relative risk than is indicated by the zone designation. if a site-specific evaluation is desired,this company recommends that a geotechnical consultant be retained to study the site and issue a report. The official County-level information addresses the potential geologic and seismic hazards itemized below: FAULT The San Bernardino County Geologic Hazard Overlay maps identify faults that are either"active"or"potentially active."For an explanation of "active"faults,see the Earthquake Fault Zone discussion above."Potentially active"faults have probably been active sometime during the last 2 million years,but do not show evidence of historical(the last 11,000 years or so)seismic activity which is the criteria used to define a fault as being"active."San Bernardino County may require geotechnical studies prior to the approval of new development contiguous to county-defined potentially active faults. LANDSLIDE Areas of low-to-moderate and moderate4o-high landslide susceptibility have been defined by the County. In addition, the County has mapped existing landslides. A slope stability analysis is required by the County before development if a property is either in an existing landslide area or an area of moderate-to-high landslide susceptibility.Such a stability analysis may include either a slope stability report by a private geotechnical consultant or a County staff review of the available slope stability data.The delineation of a landslide susceptibility area on the County Overlay Maps is not a definitive statement of the area's stability,either now or in the future.Also,large relatively flat lying areas may Section 2—Page 1 Lois Lauer, Inc. 1998 Orange Tree Lane Redlands,CA 92374 Phone: (909)748-7019 (D2006 Lois Lauer, Inc. Natural Hazard Disclosure ReportTM Report Number: 2006092500262 Property Address:Vacant Land, APN: 0175 011 76 0000 San Bernardino, San Bernardino County, CA Date: 9/25/2006 exist within these zones where the risk of slope instability hazard is either very low or remote. If detailed slope stability information is desired, this company recommends that a geotechnical consultant be retained. The delineation of a landslide on these maps is not a definitive statement of the area's stability, either now or in the future. If detailed slope stability information is desired,this company recommends that a geotechnical consultant be retained. Additional natural hazards may exist and be delineated on other sources used by the County in its Planning, Engineering, or Building Departments. Such potential sources are not reviewed in this report.To investigate other sources of natural hazard information that may be available and used at the county level,contact the county Engineering,Planning or Building Departments LIQUEFACTION POTENTIAL Liquefaction is a liquid-like soil condition which may occur during strong earthquake shaking if shallow groundwater is present and the subsurface materials are loose and cohesionless(such as sands). These factors combine to produce liquefaction in certain local areas.The county has defined zones of low,medium and high liquefaction potential.Development is restricted by the county in a zone of high liquefaction potential,unless it can be demonstrated by means of a site-specific geotechnical investigation that the hazard can be mitigated. Such studies may also be required in zones of medium liquefaction potential. Section 2--Page 2 Lois Lauer,Inc. 1998 Orange Tree Lane Redlands,CA 92374 Phone:(909)748-7019 ©2006 r ' Lois Lauer, Inc. Natural Hazard Disclosure ReportTM Report Number: 2006092500262 Property Address:Vacant Land, APN: 0175 011 76 0000 San Bernardino, San Bernardino County, CA Date: 9/25/2006 City of San Bernardino Geoloaic and Seismic Zone Determination Based on the officially adopted city-level Seismic Safety Element natural hazard maps,the subject property is: Located In either an unincorporated area or does not have officially adopted mapped information available at this time from which a geologic determination can be made. CITY-LEVEL GEOLOGIC AND SEISMIC ZONES DISCUSSION This disclosure report reviews the officially adopted geologic hazard maps in the Safety Element that each incorporated city in California is required to include in its General Plan.The city the subject property is located in has either not officially adopted hazard zonation maps in its General Plan at an appropriate scale to delineate where hazards may exist on a single parcel basis or will not make such maps available outside city offices. However, potential natural hazards may exist and be delineated on other sources used by the city in its Planning, Engineering,or Building Departments.Such potential sources are not reviewed in this report. All parties should be aware that California is "earthquake country." Faults that may exist in this City or in neighboring regions could cause earthquake shaking or other fault related phenomena at the property.Other geologic hazards such as,but not limited to liquefaction(a type of soil settling that can occur when loose,water-saturated sediments are shaken significantly in an earthquake)may occur in certain valley floor areas and landslides are a possibility in any hillside area. 0 o a END OF LOCAL AREA DISCLOSURES AND DISCUSSIONS SECTION Section 2—Page 3 Lois Lauer,Inc. 1998 Orange Tree Lane Redlands,CA 92374 Phone: (909)748-7019 @2006 Lois s Lauer,�� Inc.� . Natural Hazard Disclosure ReportTW -- Report Number: Property AddVacant Land, APN: O175O1178000O San Bernardino, San Bernardino County, CA Date: 9/25/2006 SECTION 3 FORMER MILITARY ORDNANCE SITE DISCLOSURE Determination The subject property iu NOT WITHIN one mile of a Formerly Used Defense(FUD)site containing military ordnance. Discussion FUD sites can include sites with common industrial waste (such as h/e|o), ordnance or other warfare mu0she|, unsafe structures to be demo|iohed, or debris for removal. NOTE: most FUDS sites do not contain unexploded ordnance. California Civil Code 1102 requires disclosure of those sites containing unexploded ordnance. ^K4UUary ordnance" is any kind of munit(nn, exo|ueke device/material urchemical agent used inmilitary weapons. Unexploded ordnance are munitions that did not detonate. Only those FUD sites that the USACE has identified to contain Military Ordnance orhave mitigation projects planned for them are disclosed in this report. Additional sites may be added as military inota||a8uoa are na|eoaed under the Base Realignment and Closure (BRAC) Act,Active military sites are NOT included onthe FUD8list. COMMERCIAL OR INDUSTRIAL ZONING DISCLOSURE Determination Based onpublicly-available parcel zoning records only: The property IS within one-mile of a property that is zoned for industrial or commercial use. Discussion The seller of real property who has actual knowledge that the property is affected by or zoned to allow commercial or industrial use described in Section 731a of the Code of Civil Procedure wheU give written mu8ioe of that knowledge to purchasers as soon as practicable before transfer of title (California Civil Code Section 1102,17>. The Code of Civil Procedure Section 731m defines industrial use as areas in which e city and/or county has established zones or districts under authority of |a* wherein certain manufacturing or commercial or airport uses are expressly permitted. The 'Zoning Disclosure" made in this report DOES NOT purport to determine whether the subject property is or is not affected by e commercial nrindustrial zone. As stated abnve, that determination is based solely upon ACTUAL KNOWLEDGE nfthe seller ofthe subject property. In an effort to help determine areas where this may be applicable,this disclosure identifies ifoproperty exists within one mile ofthe seller's property that is zoned to allow for commercial or industrial use, Very commonly, a home will have in its vicinity one or more properties that are zoned for commercial nrindustrial use such as nastauranbo, gasoline staVone, convenience etures, golf courses, country club etc. Section 3-Page 1 Lois Lauer,Inc. 1998 Orange Tree Lane Redlands,CAV2374Phone:(9VV)T48'7O1p (02008 Lois Lauer, Inc, Natural Hazard Disclosure ReportTM Report Number: 2006092500262 Property Address:Vacant Land, APN:0175 011 76 0000 San Bernardino, San Bernardino County, CA Date: 9/25/2006 AIRPORT INFLUENCE AREA DISCLOSURE Determination Based on certain mapped Airport Influence Areas determined by a County Airport Land Use Commission,the following determination can be made: The property is NOT IN an officially-designated Airport influence Area(AIA)and is NOT WITHIN two(2)statute miles of an airport for which no AIA has been officially designated. Discussion Certain airports are not disclosed in this report FANHD has made a good faith effort to identify the airports covered under Section 1102.6a. Sources consulted include official land use maps and/or digital data made available by a governing ALUC or other designated government body.Most facilities for which an Airport Influence Area has been designated are included on the `California Airports List" maintained by the California Department of Transportation's Division of Aeronautics.Not disclosed in this report are public use airports that are not in the"California Airports List", airports that are physically located outside California, heliports and seaplane bases that do not have regularly scheduled commercial service, and private airports or military air facilities unless specifically identified in the"California Airports List".If the seller has actual knowledge of an airport in the vicinity of the subject property that is not disclosed in this report, and that is material to the transaction, the seller should disclose this actual knowledge in writing to the buyer. FANHD uses official land use maps and/or digital data made available by governing ALUC or other designated government body. Most facilities for which an Airport influence Area has been designated are included on the "California Airports List" maintained by the California Department of Transportation's Division of Aeronautics. The inclusion of military and private airports varies by County, and heliports and seaplane bases are not included,therefore,airports in these categories may or may not be included in this disclosure. NOTE:Proximity to an airport does not necessarily mean that the property is exposed to significant aviation noise levels.Alternatively,there may be properties exposed to aviation noise that are greater than two miles from an airport. Factors that affect the level of aviation noise include weather, aircraft type and size,frequency of aircraft operations,airport layout,flight patterns or nighttime operations.Buyer should be aware that aviation noise levels can vary seasonally or change if airport usage changes. AIRPORT NOISE DISCLOSURE Determination Based on certain 65 decibel (dB) Community Noise Equivalent Level (CNEL)contour maps produced under the Federal Aviation Administration's Airport Noise Compatibility Planning Program Part 150,the following determination has been made: The property IS NOT within a delineated 68 dB CNEL or greater aviation noise zone. Discussion The selter(s)of real property who has(have)actual knowledge that the property in transaction is affected by airport use must give written notice of that knowledge,as soon as practicable,before transfer of title.(California Civil Code,Section 1102.17). Not all airports have produced noise exposure maps. A property may be near or at some distance from an airport and not be within a delineated noise exposure area,but still experience aviation noise. Unless 66dB CNEL contour maps are published, heiipads and military sites are not included in this section of the report NOTE:The Airport Noise Compatibility Planning Program is voluntary.Not all airports have elected to participate.Not all property in the vicinity of an airport is exposed to 65dB CNEL or greater average aviation noise levels. Conversely a property may be at some distance from an airport and still experience aviation noise.FANHD obtains updated maps once yearty,Purchasers should be aware that aviation noise levels can vary seasonally or change if airport usage changes after a map is published or after FANHD receives the updated maps within the schedule set by FANHD. FANHD uses the most seasonally conservative noise exposures provided. Federal funding may be available to help airports implement noise reduction programs. Such programs vary and might include purchasing properties, rezoning, and insulating homes for sound within 65dB areas delineated on CNEL maps. Airport owners have also cooperated by imposing airport use restrictions that include curfews,modifying flight paths,and aircraft limitations. Section 3-Page 2 Lois Lauer,Inc. 1998 Orange Tree Lane Redlands,CA 92374 Phone:(909) 748-7019 CD2006 ` Lois Lauer, Inc. Natural Hazard Disclosure ReportTM Report Number:2006092500262 Property Address:Vacant Land, APN: 0175 011 76 0000 San Bernardino, San Bernardino County, CA Date: 9/25/2006 REGISTERED SEX OFFENDER DATABASE DISCLOSURE ("MEGAN'S LAW") Notice: Pursuant to section 290.46 of the Penal Code,Information about specified registered sex offenders is made available to the public via an Internet Web site maintained by the Department of Justice at www.meganslaw.ca.gov. Depending on an offender's criminal history,this information will include either the address at which the offender resides or the community of residence and ZIP Code in which he or she resides. California law (AB 488), signed by the Governor on September 24, 2004, provides the public with Internet access to detailed information on registered sex offenders. The Sex Offender Tracking Program of the California Department of Justice (DOJ) maintains the database of the locations of persons required to register pursuant to paragraph(1)of subdivision(a)of Section 290.46 of the Penal Code.The online database is updated with data provided by local sheriff and police agencies on an ongoing basis. It presents offender information in 13 languages; may be searched by a sex offender's specific name,zip cafe,or city/county;provides access to detailed personal profile information on each registrant;and includes a map of your neighborhood. California Department of Justice Information Sources: Megan's Law Sex Offender Locator Web Site: tqp/Iwww.meoanslaw ca.gav California Department of Justice Megan's Law Email Address: mggansilaw0doi.ca.aov Local Information Locations For The Subject Property: All sheriffs' departments and every police department in jurisdictions with a population of 200,000 or more are required to make a CD-ROM available free to the public for viewing.Although not required,many other law enforcement departments in smaller jurisdictions make the CD-ROM available as well.Please call your local law enforcement department to investigate availability. According to current records your local law enforcement department phone number Is 909-384-5742, The following are the law enforcement departments In your county that are REQUIRED to make Information available: San Bernardino County Sheriff Department (909)387-3615 Explanation and How to Obtain Information For over 50 years,California has required certain sex offenders to register with their local law enforcement agencies.However,information on the whereabouts of the sex offenders was not available to the public until implementation of the Child Molester Identification Line in July 1995. The available information was expanded by California's"Megan's Law"in 1996(Chapter 908,Stats.of 1996).Megan's Law provides certain information on the whereabouts of"serious"and"high-risk"sex offenders.The law specifically prohibits using the information to harass or commit any crime against the offender.The information on a registered sex offender includes:name and known aliases;age and sex;physical description,including scars, marks and tattoos; photograph, if available; crimes resulting in registration; county of residence; and zip code (from last registration). Accessing the online database requires your agreement with the DOJ's terms of use web page. SAN FRANCISCO BAY CONSERVATION AND DEVELOPMENT COMMISSION DISCLOSURE (Applicable Only in Alameda,Contra Costa, Marin, Napa, San Francisco, San Mateo, Santa Clara, Solano,and Sonoma Counties) San Francisco Bay Conservation and Development Commission (BCDC) Disclosure: As of July 1, 2005, Civil Code Section 1103.4 mandates disclosure to buyers of certain real estate if that property is located within the jurisdictional boundaries of the BCDC. The property Is not within the BCDC's jurisdiction. Section 3-Page 3 Lois Lauer,Inc. 1998 Orange Tree Lane Redlands,CA 92374 Phone: (909)748-7019 @2006 r Lois Lauer, inc. Natural Hazard Disclosure ReportTM Report Number: 2006092500262 Property Address:Vacant land, APN:0175 01176 0000 San Bernardino, San Bernardino County, CA Date: 9/25/2006 ADVISORIES METHAMPHETAMINE CONTAMINATED PROPERTY DISCLOSURE ADVISORY According to the"Methamphetamine Contaminated Property Cleanup Act of 2005"a property owner must disclose in writing to a prospective buyer if local health officials have issued an order prohibiting the use or occupancy of a property contaminated by meth tab activity.The owner must also give a copy of the pending order to the buyer to acknowledge receipt in writing.Failure to comply with these requirements may subject an owner to, among other things, a civil penalty up to$5,000.Aside from disclosure requirements,this new law also sets forth procedures for local authorities to deal with meth-contaminated properties, including the filing of a lien against a property until the owner cleans up the contamination or pays for the cleanup costs. MOLD ADVISORY The Buyer is hereby advised that naturally occurring molds may exist both inside and outside of any home and may not be visible to casual inspection. Persons exposed to extensive mold levels can become sensitized and develop allergies to the mold or other health problems. Extensive mold growth can damage a structure and its contents.All prospective purchasers of residential and commercial property are advised to thoroughly inspect the subject property for mold. Be sure to inspect the property inside and out for sources of excess moisture, current water leaks and evidence of past water damage. For molds to grow and reproduce, they need only a food source - any organic material, such as leaves, wood, paper, or dirt and moisture. Because molds grow by digesting the organic material, they gradually destroy whatever they grow on. Mold growth on surfaces can often be seen in the form of discoloration,frequently green,gray,brown,or black but also white and other colors. As part of a buyer's physical inspection of the condition of a property,the buyer may consider engaging an appropriate and qualified professional to inspect and test for the presence of harmful molds and to advise the buyer of any potential risk and options available.This advisory is not a disclosure f whether harmful mold ndi i ns exist at a Prooerty or not.FANHD Geologists has not verformed testing or inspections of any kind. Any use of this form is acknowledgement and acceptance that FANHD does not disclose,warrant or indemnify mold conditions at a property in any way and is not responsible in any way for mold conditions that may exist. Information is available from the California Department of Health Services Indoor Air Quality Section fact sheet entitled,"Mold in My Home:What Do I Do?"The fact sheet is available at www.cal-iaq.org or by calling(510)540-2478. The Toxic Mold Protection Act of 2001 requires that information be developed regarding the potential issues surrounding naturally occurring molds within a home.Information was written by environmental authorities for inclusion in the Environmental Hazards:A Guide for Homeowners, Buyers, Landlords and Tenants booklet developed by the California Environmental Protection Agency and the Department of Health Services. It is found in Chapter VI of that booklet,and includes references to sources for additional information. For local assistance,contact your county or city Department of Health,Housing,or Environmental Health. Section 3-Page 4 Lois Lauer,Inc. 1998 Orange Tree Lane Redlands,CA 92374 Phone:(909)748-7019 @2006 Lois Lauer, Inc. Natural Hazard Disclosure ReportTIM Report Number: 2006092500262 Property Address:Vacant Land, APN: 0175 011 76 0000 San Bernardino, San Bernardino County, CA Date: 9/25/2006 RADON ADVISORY For its Radon Advisory, FANHD Geologists uses the updated assessment of radon exposure published in 1999 by the Lawrence Berkeley National Laboratory(LBNL)and Columbia University,under support from the U.S,Environmental Protection Agency(EPA),the National Science Foundation, and the US Department of Energy (published online at http://eetd.lbl.gov/IEP/high-radon/USgm.htm). Based on this recent assessment,FANHD's radon advisory is as follows: All of California's 58 counties have a predicted median annual-average living-area concentration of radon h2low 2.0 oCi/L(picocuries per liter of Indoor air)—which is well below the EPA's guideline level of 4 pCl/L and equivalent to the lowest hazard zone(Zone 3)on the 1993 EPA Map of Radon Zones A"median",like an average, is a central value.The"median concentration"means that half of the homes in a county are expected to be below this value and half to be above it.All houses contain some radon,and a few houses will contain much more than the median concentration.The only way to accurately asselong-term exe to radon in a sDecific house is through long-term testing(sampling the,indoor air for a year or more).The EPA recommends that all homes be tested for radon, Columbia University's"Radon Projecr'website offers help to homeowners in assessing the cost vs.benefit of testing a specific house for radon or modifying it for radon reduction(see http:/Iwww,stat.columbia.edufradon/), NOTE: FANHD does not use the EPA's 1993 map for advisory purposes because that map shows"short-term"radon exposure averaged by county. It was based on "screening measurements" that were intentionally designed to sample the worst-case conditions for indoor air in US homes—using spot checks(sampling for just a few days),in the poorest air quality(with seated doors and windows),at the worst time of the year (winter),in the worst part of the house(the basement,if one was available).These short-term,winter,basement measurements are both biased and variable compared to long-term radon concentrations(averaged over a year)in the living area of a house. Long-term concentrations are a more accurate way to judge the long-term health risk from radon.For the above reasons,the EPA expressly disclaims the use of its 1993 map for determining whether any house should be tested for radon,and authorizes no other use of its map for property-specific purposes.For additional information about EPA guidelines and radon testing, see "Chapter VII—Radon", in the California Department of Real Estate's Residential Environmental Hazards:A Guide for Homeowners,Homebuyers,Landlords and Tenants. ENERGY EFFICIENCY ADVISORIES "13 SEER" Federal Energy Efficiency Standard Advisory Effective January 23,2006, Federal law requires that all new air conditioning equipment manufactured in the United States comply with a minimum efficiency standard set by the U.S.Department of Energy(DOE).The new standard—called the"Seasonal Energy Efficiency Rating"standard of 13 (or"l3 SEER")—does not require a seller to replace existing air conditioning equipment,nor does it mean that an existing system will be obsolete or impossible to maintain.However,property owners will likely see a higher cost of the 13 SEER-compliant equipment when an existing non-compliant system is eventually replaced.For more information,visit hftp://www.eere,energy.gov/buildings/appliance—standards/residentiaVpdft/ae—factsheet.pdf California's 2005 Energy Efficiency Standards Advisory Effective October 1, 2005, the California Energy Commission adopted Title 24, Building Energy Efficiency Standards for 2005. Under these standards,local governments must adopt and enforce building codes that require ductwork to be inspected whenever new heating,ventilating or air conditioning equipment is installed, If the ductwork is found to leak in excess of 15%, then repairs to the ductwork are required to bring it into compliance.The California Energy Commission estimates that the average homes ductwork leaks by 30%or more;so,some repair costs are likely for most homes when a new furnace, for example, is installed.Title 24 does not require a seller to replace a furnace that is otherwise safe and serviceable or to inspect or repair a home's ductwork. However,the future replacement of a furnace will require such an inspection and possible repairs,which may impose an unexpected cost on the property owner.This new standard also specifically bans the use of cloth-backed tape{"duct tape")in making duct repairs,unless the tape is used In combination with approved adhesive materials.Compliance with the standard Is assured by hiring a contractor who Is property licensed,and doing the installation with a building permit so that the City Building Inspector can check the work when completed.For more information,visit http:/Awm.energy.ca.gov/titte24/2005standards Home Energy Efficiency Improvement Tax Credits Advisory According to the DOE,the higher replacement cost of a 13 SEER-compliant air conditioning system will be offset by a savings of up to 23 percent in monthly energy costs.The California Energy Commission notes that leaking ductwork accounts for up to 25 percent of the heating costs of a typical home. Therefore, compliance with the new Federal and State standards offers substantial benefits to the property owner, as well as significant environmental benefits through decreased energy consumption, compared with older systems. In addition, consumers who purchase and install specific products, such as energy-efficient windows, insulation, doors, roofs, and heating and cooling equipment in the home can receive a tax credit of up to$500 beginning in January 2006.For more information,visit htto://www.energv.clovt#axbreaks.htm _ Section 3-Page 5 Lois Lauer,Inc. 1998 Orange Tree Lane Redlands,CA 92374 Phone: (909)748-7019 02006 ' Loi , U ��uer8� � � .nc. Natural Hazard Disclosure ReportTN Report Number: 2006092500262 Property Address:Vacant Land, APN: U1750117G0O0Q San Bernardino, San Bernardino County, CA Date: 9/25/2006 Endangered Species Act Advisory FederalThe - Species Act of1S73("ESA') amended, inaodho1plantandanknm|opedeaiden8fiedanddaaoifiod("listed")^} by the Federal government mmant os 'thnaa\anad' or "endangered" be protected under U.Slaw. Areas of habitat considered essential Vothe conservation of listed species may badesignated as ^oh8na| habitat" and may require special management considerations nrprotection, All threatened and endangered species - even if critical habitat in not designated for them - are equally afforded the full range ofprotections available under the ESA. In California alone,over 300 species of plants and animals have been designated under the ESA as threatened or endangered,and over 80 species have critical habitats designated for them. Most California counties are host to o dozen or more protected npooioo and. in many cases, 10 or more species have designated critical habitats within a county, awarenessADVISORY An of threatened and endangered species and/or critical habitats is not reasonably expected to be within the actual knowledge cfoseller. No Federal rule, California statute, Department of Real Estate eQu|ahon, orother law nsqu|me a seller nrsellers agent 0odisclose threatened or endangered species or critical hahhatm, or investigate their possible existence, on neo| property- Therehore. Buyer is advised that, prior to purchasing e vacant land parcel orother real pmp". Buyer should consider the need to investigate the existence of threatened or endangered species, or designated critical habitats, on or in the vicinity of the parcel, which could affect the use of the property orthe success ofany proposed(re)deve|upman\. andFor more information endangered species in California that are Federally listed in each county--`---including ail critical habitats designated there-iaavailable onthe website nfthe UG. Fish&Wildlife Service,the Federal authority which has enforcement responsibility for the ESA, For Northern California visit: http:xvmww.fmm.gomsourmmenu»/es/mppJhats/amuo_|int-yonn.ohn For Southern California visit: hop:0vp^mvfws.gov/curtsbm6»CFWO_Wpmciea_Listhun Section 3-Page 0 Lois Lauer, Inc. 19S8Orange Tree Lane Redlands,CAV%J74Phone:(909)7*8-701$ C2006 Lois Lauer, Inc. Natural Hazard Disclosure ReportTM Report Number:2006092500262 Property Address:Vacant Land, APN: 0175 01176 0000 San Bernardino, San Bernardino County, CA Date: 9/25/2006 ••Lois Lauer, Inc. SERVICES SECTION-- Any use of this report is an acknowledgement of and an agreement to abide by the terms stated in this section. For the Natural Hazard Disclosures,Lois Lauer,Inc.(Lois Lauer,Inc.)examines only the following maps:(a)NFIP Flood Insurance Rate Maps,(b)California Office of Emergency Services Dam Failure Inundation maps, (c)Real Estate:disclosure(CDF)fire maps, (d) Seismic Hazards Mapping Act maps, (a) geologic and seismic hazard maps adopted by the county as part of its General Plan's Safety Element, (f)geologic and seismic hazard maps adopted by the city as a part of its General Plan's Safety Element, (g) LOMR's or LOMA's(made available to us), for location of the above property as identified by the seller or seller's agent.Lois Lauer,Inc.relies on these official sources for the information in this report and does not produce, maintain or verify the information. Our services include, where appropriate, use of the assessors rolls, cadastral-type, maps, photographic enlargements of maps and various cartographic techniques to locate the site on the appropriate map.The determination is made as accurately as reasonably possible using these said maps.For purposes of defining property lines,the assessor's parcel number and parcel maps are used.Any errors in the assessor's rolls may affect the determination procedures. Decisions by jurisdictions relative to required studies,reports,etc,may be made using the same information sources used in the disclosures in this report, as well as information in their files and/or local ordinances and procedures. The disclosure information in this report is not a substitute for a geologic or engineering study,nor can it be construed that a city or county will not require such studies.No visual examination of the subject site was performed nor was a study of any jurisdiction's files or other sources made to determine the existence of any hazard which may exist on the site.This report is for the purpose of certain map-based real estate transaction disclosures only and is not a substitute for the broker/agent property inspection. Our determination for Mello-Roos Special Tax and 1915 Special Assessment Districts was made using a proprietary third-party database of Special Tax and Assessment Districts (STAD) that have issued bonds as the method to pay for facilities. Only STAD's which levied a tax against the subject property in the previous tax year are disclosed. STAD information may not be available if the property is in foreclosure for delinquent or non-payment of a Special Tax or Assessment. Lois Lauer, Inc. cannot be held responsible for not reporting these cases. The databases are deemed to be accurate based on information supplied by bond issuers. Under no circumstances will Lois Lauer, Inc. be responsible for errors in the data supplied by bond issuers and suppliers of the tax databases.Information is up-dated on a yearly basis as soon as possible after updated information is released. No study of the assessor's or jurisdiction's files was made to determine the presence of any other tax or assessment which may exist for the property.Other types of"special assessments'likely exist that are not Mello-Roos or 1915 Bond Act Assessments,This Lois Lauer,Inc.report is for disclosure only and is not intended to provide any type of tax advice.Lois Lauer,Inc.suggests that if any party to this transaction has any concerns or questions regarding Mello-Roos Community Facilities Districts,or 1915 Special Assessment Districts they contact an appropriate expert. Military ordnance disclosures were provided using Department of Defense data sources that Lois Lauer, Inc. neither produces nor maintains. Lois Lauer, Inc. cannot accept liability for the accuracy of the information derived from these public data sources. No on-site inspection was performed. Lois Lauer, Inc, performs services for the real estate agent/broker and current owner.This report is for residential property only and is for the exclusive use of the contractual parties,their broker/agent(s),and the current owner's sale for which it is issued.Due to changes in tax districts, disclosure maps,laws and contractual parties,this report cannot be relied upon for other properties nor for future transactions of the subject property.All parties should be aware that the information is subject to change, Lois Lauer, Inc,is not responsible for advising parties of any changes that may occur after the date of this report. As a courtesy, Lois Lauer, Inc. will update this report at no cost during the single transaction process for which this report was issued,if requested.Lois Lauer,Inc.shall not be liable to anyone who may claim any right through his/her relationship with the agent,except when acts or omissions are due to willful misconduct or negligence by Lois Lauer,Inc.. Reproduction of this report is permitted only for the purpose of fulfilling the seller's disclosure duty to the buyer in the transaction of the real property at the subject address noted herein.Any other reproduction,facsimile, or republication of this report is expressly prohibited and is a violation of the copyrights,trademarks and service marks of the Lois Lauer, tnc,, and will be prosecuted to the fullest extent of the law. The Company shall assume no liability unless and until the fee for this(these}reports)Is paid In full. This Lois Lauer,Inc.Report Includes a statutory Natural Hazard Disclosure Statement as Legislated In California Civil Code 1103.The delivery of this report Is sufficient compliance for the legal exemption that states neither the seller nor any listing or selling agent will be liable for any error in this information 99 long as ordinary care Is exercised in transmitting It and they have no personal knowledge of errors(California Civil Code 1103.4). This report Is not an Insurance policy and Is not a substitute for the buyer obtaining Property&Casualty Insurance Policies which will provide coverage against losses Incurred as a result of earthquakes,fires,flooding,environmental hazards,or any other kinds of risks associated with the property. if any party to this transaction has concerns relative to the stability or condition of the prop" or If"red flags" are observed during any party's inspection,an appropriate consultant should be retained to study the site and render an opinion. Section 3-Page 7 Lois Lauer, Inc. EnviroCheckTA° Disclosure Report Property Address:Vacant Land, APN: 0175 011 76 0000 San Bernardino, San Bernardino County, CA Date: 9/25/2006 Report Number: 2006092500262 Section 5 THE PARTIES: The owner of the Residential Property on the Report Date ("Seller"), the buyer of the Residential Property under contract of sale as of the Report Date ("Buyer") and their respective licensed real estate agents ("Agents") are the parties to the Transaction to which this Report applies ('Parties'). First American and the Parties are the parties to the contract that is entered into by the purchase of this Report. SECTION 5.1: SUMMARY OF DETERMINATIONS The sites disclosed on this report have been identified from certain government lists and are within one-half mile of the subject property. Please refer to the remaining Parts of this report for individual site summaries and additional information. Methods and limitations are at the end of the report. The subject property: IS ❑ IS NOTFX within 1/4 mile of a known leaking underground fuel tank site(s). IS F] IS NOT o within 1/2 mile of a site(s)other than a leaking underground fuel tank. Some official lists may include sites that have been closed or otherwise cleaned up, or are simply being monitored or regulated with no known contamination. The hazard'sites' included in this report are 'POINT' SOURCES ONLY, such as a leaking underground tank on a specific property. This report does NOT address 'AREAS' of potential environmental hazard, such as a contamination Study Area or a groundwater plume. In addition, any point source that lies beyond the standard 1/4 and 1/2-mile radius distances considered here will not be reflected in this report--even if it is known to be the origin of a larger contaminated area. Point sources are included in this report as of the time they are identified in the government lists consulted by Lois Lauer, Inc.. Lois Lauer, Inc. prepared this report. Real estate brokers, agents and contractual parties ordering this report are covered by our Professional Liability Insurance Policy for damages to the extent they are caused by our negligent acts, errors or omissions in the performance of our services and subject to the limitations of this report. Determined by / y Lois Lauer, Inc. Scott Roecklein,Sr.Vire President First American Natural Huard Disciosures I have read this Lois Lauer, Inc. EnviroCheck Report prior to signing and have received a copy of this report. Signature of Transferor(Wier) Date Signature of Transferor(Seller) Date Signature of Transferee(Buyer) Date October 2, 2006 �onHar ison, Mayor AT'T'EST: t Date October 2, 2006 Lorre Poyze , i y Clerk Page 1 of 15 Lois Lauer, Inc. 1998 Orange Tree Lane Redlands, CA 92374 Phone: (909)748-7019 02006 t Lois Lauer, Inc. EnviroCheckTm Disclosure Report Property Address:Vacant Land, APN: 0175 011 76 0000 San Bernardino, San Bernardino County, CA Date: 9/25/2006 Report Number: 2006092500262 Section 5 THE PARTIES: The owner of the Residential Property on the Report Date ("Seller"), the buyer of the Residential Property under contract of sale as of the Report Date ("Buyer") and their respective licensed real estate agents ("Agents") are the parties to the Transaction to which this Report applies ("Parties"). First American and the Parties are the parties to the contract that is entered into by the purchase of this Report. SECTION 5.1: SUMMARY OF DETERMINATIONS The sites disclosed on this report have been identified from certain government lists and are within one-half mile of the subject property. Please refer to the remaining Parts of this report for individual site summaries and additional information. Methods and limitations are at the end of the report. The subject property: ❑ X within 1/4 mile of a known leaking underground fuel tank site(s). IS F-1 IS NOT IS ❑ IS NOT ❑X within 1/2 mile of a site(s)other than a leaking underground fuel tank. Some official lists may include sites that have been closed or otherwise cleaned up, or are simply being monitored or regulated with no known contamination. The hazard 'sites' included in this report are 'POINT' SOURCES ONLY, such as a leaking underground tank on a specific property. This report does NOT address 'AREAS' of potential environmental hazard, such as a contamination Study Area or a groundwater plume. In addition, any point source that lies beyond the standard 1/4 and 1/2-mile radius distances considered here will not be reflected in this report--even if it is known to be the origin of a larger contaminated area. Point sources are included in this report as of the time they are identified in the government lists consulted by Lois Lauer, Inc.. Lois Lauer, Inc. prepared this report. Real estate brokers, agents and contractual parties ordering this report are covered by our Professional Liability Insurance Policy for damages to the extent they are caused by our negligent acts, errors or omissions in the performance of our services and subject to the limitations of this report. Determined by ; Lois Lauer, Inc. Scott Roealeln,Sr.vice President First American Natural Hazard Disclosures I have read this Lois Lauer, Inc. EnviroCheck Report prior to signing and have received a copy of this report. Signature of Transferor(Seller) Date Signature of Transferor(Seller) Date Signature of Transferee(Buyer) Date Signature of Transferee(Buyer) Date Page 1 of 15 Lois Lauer, Inc. 1998 Orange Tree Lane Redlands,CA 92374 Phone: (909)748-7019 02006 h Lois Lauer, Inc. EnviroCheck rm Disclosure Report Property Address:Vacant Land, APN: 0175 011 76 0000 San Bernardino, San Bernardino County, CA Date: 9/25/2006 Report Number: 2006092500262 SECTION 5.2: INTRODUCTION AND SUMMARY WHAT THIS REPORT DISCLOSES: This Report discloses information from six governmental Databases as to the existence of any underground storage tank or other specific types of potentially contaminated sites ("Sites") located within a specified distance of the Residential Property. This Report is divided into five parts: Section 5.1. Summary of Determinations Section 5.2. INTRODUCTION and Summary Section 5.3. Information Regarding Potentially Contaminated Sites within specified distances of the Residential Property Section 5.4. ExPLANATION OF THE DATABASES from which this Report has been prepared Section 5.5. Explanation of the METHODS used in creating this Report and Important Limitations of the Report Section 5.6. BACKGROUND INFORMATION regarding environmental contamination UNDERSTANDING THIS REPORT: To understand the information in the Report, including Schedules A and B, it is important to read this entire Report. THIS IS A DATABASE REPORT ONLY: This Report only provides information from the Databases identified in this Report. While First American has made good faith efforts to report from the Databases as accurately as possible, the quality, accuracy, and currency of the information contained in these Databases can vary greatly. For more information regarding a specific Database, please read the Part below entitled"Databases Used in this Report." POINT SOURCE METHODOLOGY: This Report does not identify the precise areas actually contaminated by an environmental hazard; rather, as a reasonable approximation, it identifies as "point sources" for contamination those Sites identified in a specific Database. The point sources identified in this Report may not precisely reflect the location of the source of contamination on the Site, nor will they describe the spread of any contamination from the source. If a box is checked"IN"on Schedule A, First American recommends further investigation of that Site. NOT AN INSPECTION REPORT: This Report is not the same thing as a physical inspection report or a full environmental assessment report. First American has not physically inspected the Residential Property nor the Sites. This Report only summarizes the information from governmental Databases using the Point Source methodology described above to determine the proximity of Sites to the Residential Property. LIABILITY PROTECTIONS: Upon Consummation of the sale of the Residential Property to Buyer ("Sale Date"), the Parties involved in that sale are protected against loss caused by any error in this Report as specified in the Part below entitled "Methods and Limitations." NOT AN INSURANCE POLICY: This Report is a binding contract but is not an insurance policy. The price charged for the Report does not cover the costs that would be necessary to provide all of the protections of an insurance policy. Page 2 of 15 Lois Lauer, Inc. 1998 Orange Tree Lane Redlands, CA 92374 Phone:(909)748-7019 ©2006 Lois Lauer, Inc. EnviroCheckTm Disclosure Report Property Address:Vacant Land, APN: 0175 011 76 0000 San Bernardino, San Bernardino County, CA Date: 9/25/2006 Report Number: 2006092500262 SECTION 5.3: INFORMATION REGARDING SITES IDENTIFIED IN SECTION 5.1 SITES LISTED ON A LEAKING UNDERGROUND FUEL TANK LIST All of the sites in this section are listed on the State's Leaking Underground Fuel Tank Information System (LUFT) and have been identified to have had a leaking fuel tank. Many of these sites have been cleaned up, and this is noted below if it is the case. Leaking underground fuel tanks are the most common type of contamination. Fuel tank leaks are often less extensive than other types of contamination releases and usually do not extend beyond the property on which the tank is located. NOTE! The LUFT list identifies the type of resource (soil, groundwater, aquifer, etc.) that is or was affected by the contamination. For some listed sites, the resource description may appear to contradict information cited for"cleanup activity status". Please contact the State Water Resources Control Board for an explanation of any such discrepancy. No listed leaking underground storagetank sites were found within one quarter mile of the property. Page 3 of 15 Lois Lauer, Inc. 1998 Orange Tree Lane Redlands, CA 92374 Phone:(909)748-7019 02006 Y4�"r4 Lois Lauer, Inc. EnviroCheckTM Disclosure Report Property Address:Vacant Land, APN: 0175 011 76 0000 San Bernardino, San Bernardino County, CA Date: 9/25/2006 Report Number: 2006092500262 SITES WITHIN % MILE OF THE SUBJECT PROPERTY OTHER THAN A LEAKING UNDERGROUND FUEL TANK The following sites are regulated by an agency or have been listed by a state or federal agency as being contaminated either currently or in the past. Many of these sites have been cleaned-up;and this will be noted if it is the case. NOTE: sites listed on SWIS are not considered contaminated;they are simply monitored for compliance with regulatory procedures. No other types of hazardous substance contaminated sites were found within one-half mile of the property on the lists used to prepare this report Page 4 of 15 Lois Lauer, Inc. 1998 Orange Tree Lane Redlands, CA 92374 Phone: (909)748-7019 02006 Lois Lauer, Inc. EnviroCheckTm Disclosure Report Property Address:Vacant Land, APN: 0175 011 76 0000 San Bernardino, San Bernardino County, CA Date: 9/25/2006 Report Number: 2006092500262 SITES MISSING KEY LOCATION INFORMATION N/P=Not Provided on list used. N/A=Not Applicable-Sites listed as containing, using or storing hazardous substances, no cleanup status provided. Active=Site undergoing clean-up or investigation. Closed=Clean-up completed. A limited number of listed sites contain address information that is inaccurate, incorrect, or is missing key information necessary to locate the site with confidence using the geocoding methods used in this report. These sites are reported in the generalized list below for your review based on their possible existence in proximity to the subject site. Sites in this section are not necessarily within a one mile search radius of the subject property.We are providing this list for general information only. Site Name Address Statue Database No sites missing key location information were found on the lists used to prepare this report. Page 5 of 15 Lois Lauer, Inc. 1998 Orange Tree Lane Redlands,CA 92374 Phone: (909)748-7019 02006 Lois Lauer, Inc. EnviroCheckTm Disclosure Report Property Address:Vacant Land, APN: 0175 011 76 0000 San Bernardino, San Bernardino County, CA Date: 9/25/2006 Report Number: 2006092500262 SECTION 5A EXPLANATION OF THE DATABASES USED IN THIS REPORT This Report uses the following Databases as of the specified date for each Database("Database Date"): 1. NATIONAL PRIORITIES SITES(NPL sites-commonly called"Superfund"or"CERCLIS"Sites)AS OF JULY 1,2006. The National Priorities List ("NPL") is a federal Environmental Protection Agency ("USEPA") database which includes sites where known releases or threatened releases of hazardous substances, pollutants, or contaminants have occurred. As a part of the Superfund cleanup program, the NPL helps the USEPA determine which sites warrant further investigation to assess human health and environmental risks, identify what remedial actions may be appropriate, notify the public of sites believed to warrant further investigation, and serve notice to potentially responsible parties that the USEPA may initiate remedial action. Some NPL sites encompass relatively large areas. Responsible Agency: USEPA FOR MORE INFORMATION: Contact the Environmental Protection Agency Superfund Hotline at(800)424-9346 to speak with a Superfund consultant to request information from the individual Site Fact Sheet. This help-line can also provide the telephone number of the local Community Relations Coordinator for the Site in question and the location of the local information repository for that Site.The USEPA's official Internet website address is www.epargov/superfund/sites/npi/ca.htm. 2. Leaking Underground Fuel Tank Sites(LUFT)PER GEIMS/GEOTRACKER INFORMATION MANAGEMENT SYSTEM AS OF JULY 1,2006. Leaking underground storage tanks ("LUSTs") may be a significant source of soil and groundwater contamination. The State Water Resources Control Board maintains a database of LUSTs known as the Leaking Underground Storage Tank Information System which was recently supplanted by the statewide GEIMS/GeoTracker information management system. LUSTIS contains the locations of all reported LUSTs, as well as the contents and status of the LUSTs. Responsible Agency: SWRCB FOR MORE INFORMATION: For general questions, telephone the State Water Resources Control Board's Clean Water Desk in Sacramento at(866)480-1028. Information on specific sites is available at www.swrcb.ca.gov or visit their official Internet site at www.geotracker.waterboards.ca.gov 3. California Integrated Waste Management Board's SWIS List AS OF JULY 1,2006. Solid Waste Landfill Sites vary from state to state and may include active landfills, inactive landfills, incinerators, transfer stations, recycling facilities, and other facilities where solid waste is treated or stored. The California Integrated Waste Management Board ("CIWMB")tracks such sites via its SWIS database. SWIS contains information on facility type, regulatory and operational status, type of wastes received, and local enforcement actions. Please note that these sites are simply regulated facilities and are not classified as being"contaminated"by the Board. Responsible Agency: CIWMB FOR MORE INFORMATION: Contact the Board's "Solid Waste Information Center" at (916) 341 6320 and ask for the Associate Waste Management Specialist who should be able to answer some limited general questions. For more information, please contact the CIWMB in Sacramento or visit www.Ciwmb.CA.Gov/Swis/search.aso#DOWNLOAD on the Internet. 4. Spills,Leaks,Investigation and Cleanup list(SLIC)As OF JULY 1,2006. The SLIC Program oversees soil and water investigations,corrective actions, and assessments at sites with current or historic unauthorized discharges and covers all types of pollutants (such as solvents, petroleum fuels, heavy metals, pesticides, etc.) As of January 1,2005, all SLIC data is required to be submitted to the State Water Resources Control Board's Geotracker database. Information on individual sites may be available online at www cieotracker.waterboards.ca.gov . Please note that according to the SWRCB,"data is undergoing data cleanup and may contain errors". FOR MORE INFORMATION: Contact the Geotracker Help Desk at(866)480-1028 5. CALIFORNIA ACTIVE ANNUAL WORKPLAN LIST(AWP)AS OF OCTOBER 1,2005. Responsible Agency:State EPA FOR MORE INFORMATION: Contact the State Environmental Protection Agency Department of Toxic Substances Control at: (916)323-3400 Page 6 of 15 Lois Lauer, Inc. 1998 Orange Tree Lane Redlands,CA 92374 Phone: (909)748-7019 02006 Y6 41 Lois Lauer, Inc. EnviroCheck"m Disclosure Report Property Address:Vacant Land, APN: 0175 011 76 0000 San Bernardino, San Bernardino County, CA Date: 9/25/2006 Report Number: 2006092500262 WANT MORE INFORMATION? There is no single government agency that handles information for all contaminated sites. Multiple agencies are responsible for organizing clean-up efforts at different types of sites. Each generally maintains files on the sites they oversee with information on the type and extent of contamination, dean-up efforts etc. There is also the possibility that the file may have no additional information. For general information, refer to the discussions in this report. If your question isn't answered there,call us here at First American.We will try and answer them for you. In each site summary, there is the name and telephone number of the agency overseeing that site. Agencies are limited to answering general questions. NOTEI Additional information on a site may be limited and the government agency you contact will not venture opinions. How to Obtain Generalized Environmental Information Brochures published by the Environmental Protection Agency (EPA) are a good source of general information. County health departments may have a health and safety officer or a "haz-mat" (hazardous materials) specialist that can answer general questions also.The telephone number for your local Department of Health should be listed in the telephone book. Environmental Protection Agency Drinking Water Hotline: (800)426-4791 Federal Environmental Protection Agency Public Information Office:(866)372-9378 California Environmental Protection Agency: (916)445-3846 Page 7 of 15 Lois Lauer, Inc. 1998 Orange Tree Lane Redlands,CA 92374 Phone: (909)748-7019 02006 Lois Lauer, Inc. EnviroCheckTm Disclosure Report Property Address:Vacant Land, APN: 0175 011 76 0000 San Bernardino, San Bernardino County, CA Date: 9/25/2006 Report Number: 2006092500262 SECTION 5.5: METHODS AND LIMITATIONS -- PLEASE READ! As in all studies and reports,there are limitations in this Report.This Part will summarize(a)the methods used in creating this Report, (b)the limitations with respect to the data and the government site lists ("Databases"), and (c)the responsibilities and liabilities of First American under this Report. Please read this Part carefully so you understand the limitations on this Report and First American's responsibilities. A. LIMITATIONS ON DATABASE INFORMATION First American has accurately reported the information in the Databases as of the Database Dates. With respect to the Databases, it is important to understand that: o The Databases may not be accurate, current,fully detailed,or complete. o A parcel of real property may be affected by contamination or environmental hazards that have not been identified on any of the Databases. o A Database may not contain sufficient information to locate a particular parcel of property. o Changes may have occurred in the Databases since the Database Date specified above. o There may be other governmental databases with relevant information which are not included in this Report. B. FIRST AMERICAN DOES NOT CONSTANTLY CHECK DATABASES FOR CHANGES Each Database used in this Report is updated by the Responsible Agency at various intervals. Updates for a Database are determined by the Responsible Agency and may be made at any time and without notice. First American maintains an update schedule and makes reasonable efforts to use updated information but it cannot feasibly do so on a constant basis, and the complexities of obtaining and adapting the data into a usable format for preparing this Report necessitates some delay once the updated information is obtained. For these reasons, First American reports information as of the date when the Database was last updated by First American. That date is specified as the"Database Date"for each Database in Part 4. C. LIMITATIONS ON How SITES ARE LOCATED AND REPORTED Due to the way information is reported in the Databases,the Sites identified are"POINT SOURCES"ONLY which means that the speck location of the Site is located based on the information in the Database and used as the beginning point for measuring the distance to the Residential Property. This Report does NOT use "AREAS" of potential environmental contamination, such as a contamination study area or a groundwater plume, even if the source of that study area or plume derives from a Site. In other words, this Report identifies a single point as the approximate source point for an environmental hazard identified on a Database,even if the hazard actually covers an expanded area. In the Databases,the Sites are identified by their address. In this Report,the point location for a Site is based on that address, not on the actual location of a source of contamination on the Property. As a result, the location of any Site set forth in this Report may not be precisely the location of the source of contamination. Furthermore, some of the Databases may not have the complete address information for a Site so it can not be located at all. The Residential Property has been located by approximating its street address as a point. While First American has attempted to locate that point as accurately as possible, there may be some inaccuracy due to the shape of the property or the mapping information upon which we have relied. Furthermore,since the Sites are located using a geographic information system, if the address of the Residential Property provided to First American is inaccurate, the information provided in this Report will not be accurate. In certain instances, Sites cannot be precisely located (or "geocoded") due to missing or inaccurate data in the Database. However, based on information available in the Databases, these Sites are locatable within zip codes. These sites are referred to as "Unlocated Sites" and reported in the Part, "Sites Missing Key Location Information." That Part reports such Unlocated Sites that are in the zip codes that are within a one(1)mile radius of the Residential Property. Unlocated Sites are not necessarily within one mile of the Residential Property. They are identified to alert you to potential issues on which you may desire to obtain further information. Page 8 of 15 Lois Lauer, Inc. 1998 Orange Tree Lane Redlands,CA 92374 Phone: (909)748-7019 02006 Lois Lauer, Inc. EnviroCheckTm Disclosure Report Property Address:Vacant Land, APN: 0175 011 76 0000 San Bernardino, San Bernardino County, CA Date: 9/25/2006 Report Number: 2006092500262 For these reasons, parties should seek additional information about the Sites listed, as described in the discussion of the relevant Database. D. (.IMITATIONS IN THIS REPORT First American does not make any representations as to: • The accuracy,validity or completeness of the Databases. • The significance or extent of the contamination or remediation of any of the Sites identified in the Databases. • The health hazards to humans or animals that may be associated with any of the substances that may exist at the Sites or how they may affect the Residential Property. • The drinking water sources for the Residential Property. • Any information in a Database after the Database Date for that Database. • Any information regarding the Residential Property after the Report Date. First American does not perform a physical examination or any testing of the Residential Property or the Sites. This Report only provides information derived from the Databases in accordance with the Methods and Limitations.This Report should not be considered a substitute for an on-site environmental assessment. if additional information is desired, the Parties are encouraged to investigate other sources and to consult an environmental expert. E. ONLY THE PARTIES MAY RELY ON THIS REPORT This Report is valid, the Parties may rely on the Report, and a contract is formed with First American, only upon receipt by First American of payment of the full price of the Report. This Report may be relied upon only by the Parties to the transaction for which it has been purchased. This Report cannot be relied upon (a) by any persons other than the Seller, the Buyer and their Agents, (b)for any other real property, or(c)for any future transactions involving the Residential Property. The price paid for the Report does not include any amounts for protection of such other parties. F. LIMITATIONS ON FIRST AMERICAN'S LIABILITY Given the limited nature of this Report, and the fact that First American is reporting, not assuming liability, First American is not responsible for: o Any inaccuracies or incompleteness of the information in the Databases. o Inaccurate address information provided for the Residential Property. o Any other information not contained in the specified Databases. o Any information which would be disclosed by a physical inspection of the Residential Property. o Any information known by one of the Parties. o Any changes to the information in the Databases after the Database Date. o The health hazards to humans or animals that may be associated with any of the substances that may exist at the Sites or how they may affect the Residential Property. a The costs of investigating or cleaning up any environmental hazards. This Report is not an Insurance policy and does not provide the same protections as an insurance policy. It does not obligate First American to defend any Party against any claims, and First American shall not have any duty to defend against any claims pursuant to California Civil Code §2778 or otherwise. The price of this Report has not been based upon any responsibility for defense costs, nor for assumption of environmental risks. The premium for an insurance policy would be significantly greater than the cost of this Report. The Parties acknowledge that claims for damages beyond actual losses can significantly increase the costs of reports and make prompt resolution of claims more difficult. In order to induce First American to provide this Report for the price charged, and to help streamline the process of resolving any disputes between the Parties and First American,the Buyer, Seller and Agents agree that if there is a material error or omission in this Report: • The Party who suffers damages as a result of such error or omission shall be entitled at most to recover from First American the actual proved damages measured by the difference in the fair market value of Page 9 of 15 Lois Lauer, Inc. 1998 Orange Tree Lane Redlands,CA 92374 Phone: (909)748-7019 ©2006 Y1416or Lois Lauer, Inc. EnviroCheckTm Disclosure Report Property Address:Vacant Land, APN: 0175 011 76 0000 San Bernardino, San Bernardino County, CA Date: 9/25/2006 Report Number: 2006092500262 the Residential Property as of the Report Date, caused by the error or omission but not in excess of $100,000 Dollars($100,000). First American shall not be liable for indirect, consequential, or punitive damages (including, but not limited to,emotional distress or pain and suffering). First American shall not be liable to a Party for any matters known to that Party or its Agent(including errors in this Report) and not disclosed in writing to both the other Parties and First American prior to the Sale Date. G. SELLER AND SELLER'S AGENT'S RESPONSIBILITY OF FULL DISCLOSURE Sellers of real property and their Agents should always fully disclose all material facts regarding the real property which they are selling. Regardless of the information in this Report, if Seller or Seller's Agent has any actual knowledge of contamination, releases of hazardous materials or remediation activities potentially affecting the Residential Property,that information should be promptly disclosed in writing to the Buyer and the Buyer's Agent. H. OTHER AGREEMENTS This Report sets forth the complete, integrated agreement between First American and the Parties. Evidence of prior or contemporaneous statements, representations, promises or agreements shall not be admissible to vary the terms of this written agreement. This agreement may not be changed or amended except by a written document signed by an authorized representative of First American and the Parties. In the event that any dispute arises between First American and any Parties arising out of or relating to this Report or its subject matter, or any act or omission of First American, the prevailing party shall be entitled to recover his, her or its reasonable costs, including attorneys'fees,from the losing party. If any provision of this Report, or its application to any circumstance, is held to be invalid, unenforceable, or void, the remainder of this Report shall remain in full force and effect and enforced to the fullest extent possible. PART 5: BACKGROUND INFORMATION The subject of hazardous waste can be an emotional and uncertain topic. You have taken an important step by obtaining this report to help become informed on environmental issues. There are a number of important factors to consider when assessing environmental issues. Risk is only one factor. Others include public values and perceptions, economic constraints, perceived risk to health etc. Accurate and unbiased information is important. It provides a logical foundation for decisions that are often emotionally based on"perceived"rather than on actual risk. This section includes discussions on certain topics to help you understand this report. The subject of contamination is broad and complex. These discussions are not intended to be an exhaustive study of environmental issues. In addition, many aspects of hazardous substance clean up and control change as state-of-the-art practice and legislation changes. For these reasons, the following information is of necessity generalized and may not apply to every site.This section is divided into the following: What Are Hazardous Substances?Understanding the Risk in Perspective Groundwater Formation of Plumes:The Transport of Chemicals into Groundwater Leaking Underground Fuel Tanks What is a`Superfund°Site? Drinking Water:Tap vs. Private Well Page 10 of 15 Lois Lauer, Inc. 1998 Orange Tree Lane Redlands,CA 92374 Phone: (909)748-7019 02006 Lois Lauer, Inc. EnviroCheckrm Disclosure Report Property Address:Vacant Land, APN: 0175 011 76 0000 San Bernardino, San Bernardino County, CA Date: 9/25/2006 Report Number: 2006092500262 WHAT ARE HAZARDOUS SUBSTANCES? Chemicals in our environment are a controversial subject. This is because their effects on human health are often not well understood. Both the government and the public want clear standards that define when a substance is considered "hazardous." Unfortunately, it is not always easy to determine such a clear standard. Precise instruments allow us to detect a wide variety of substances even in very small concentrations. Sometimes these substances are only detectable in the parts per billion (ppb)or parts per trillion(ppt)ranges. In these cases,the concentrations are at or near the limit of our ability to even detect them. If scientific study shows that a particular chemical is known or suspected to adversely affect our health, that substance could become listed as an official hazardous substance. The list of what "is" and "is not" a hazardous substance changes. With increased research,substances are added and, in some cases, removed. The potential health implications make us question the presence of chemicals in our environment. It's important to understand that any risk associated with a substance is dependent on both the concentration of the chemical and the length of exposure time. Some scientists believe that a"threshold"level exists for many chemical concentrations below which there are no known or anticipated adverse health effects. This allows standard concentration limits of some chemicals to be established. These standards are called "Maximum Contaminant Levels" (MCL), and they are enforceable by the Environmental Protection Agency. If these levels are exceeded,the substance must be cleaned-up until it is at or below the MCL. The term "hazardous substance" is used in this report as synonymous with "hazardous waste" and "toxic substance." In general,the terms refer to a material with potentially harmful affects. Once a particular substance is determined to be harmful, it may become regulated by one or more environmental laws. When this happens, it is termed "listed." Once a chemical is "listed,"sites that have spilled or leaked the substance may be required to clean it up. Hazardous Substances in Perspective As is true with any hazardous substance,the mere presence of it is not a threat to human health. In order to pose a health risk, that substance must come into physical contact with the body by eating, drinking, inhalation, or skin contact. It is the likelihood of physical exposure to a substance that must be carefully examined to determine an acceptable level of risk. Information on how contaminated sites can or cannot affect the property is vital in making decisions. Inaccurate perceptions could lead to making misinformed decisions.Two lines of logic to consider when analyzing risk are: • We make daily decisions based on familiar and acceptable levels of risk because we feel the benefits outweigh the potential consequences. For instance, although we know driving freeways might be dangerous, we drive them anyway because convenience and speed makes this risk acceptable. Many risks we undertake everyday aren't considered hazardous simply because they are familiar. • Everyday,we make decisions based on what is most important to accomplish first,second,etc.This is necessary because if all problems were assigned equal importance, nothing could be accomplished. Risk is commonly considered similarly or, in other words, as "relative risk." This consideration is based on deciding what "risk" has the worst or immediate adverse consequence and then address that risk first. Often, decisions are not based on scientific analysis and hard data, but on perceived risk and public opinion. In the environmental arena, these two approaches go head to head. Public attention may be focused on certain environmental hazards based on a dramatic and well-publicized environmental problem. Unfortunately,this may lead to a diminished concern for other environmental issues that may pose more immediate concern. This line of thinking is not directed at undermining the significance of large-scale contamination, but is meant to direct attention to the"big picture." Page 11 of 15 Lois Lauer, Inc. 1998 Orange Tree Lane Redlands,CA 92374 Phone: (909)748-7019 ®2006 Y6 Lois Lauer, Inc. EnviroCheckTm Disclosure Report Property Address:Vacant Land, APN: 0175 011 76 0000 San Bernardino, San Bernardino County, CA Date: 9/25/2006 Report Number: 2006092500262 Many studies indicate that things we do on a daily basis in our homes may expose us to a greater overall health risk than living next door to virtually any contaminated site. It's hard to imagine that many of the items we take for granted in our homes have higher concentrations of hazardous substances and expose us for greater amounts of time than just about anything we encounter in normal outdoor activities. This is where familiarity with items such as"dry-cleaned" clothes, many air fresheners, mothballs, paints or shoe polishes make the hazardous substances in such things acceptable. In certain cases, chemicals that are strictly regulated in industry are not regulated in homes. An example is methylene chloride, which the EPA found in about one-third of 1000 common household products in a 1987 study. Methylene chloride is regulated in factory emissions,but not within homes. Understanding a variety of issues is important for making informed decisions. Evaluating risks accurately in order to avoid over-or under-reacting is a task best completed based on sound, accurate information. GROUNDWATER The water in lakes, rivers, and groundwater all together only account for about 0.6% of the total water on Earth. Of these, groundwater is the most important fresh water supply. About half of the United States depends on groundwater for their drinking water. An expanding population and economy has prompted a dramatic increase in the demand for water from groundwater supplies. Many thought such water was immune from contamination. However, as more incidents of groundwater pollution occur, public interest in protecting our groundwater has increased as well as legislative protection of this resource. Although the technical aspects of groundwater and groundwater pollution are beyond the scope of this report, the basic concepts are easy to understand and can help in evaluating other information in this report. How Groundwater Reservoirs Form In order to understand the basic principles of groundwater, it is necessary to appreciate the "hydrologic cycle." This is the system by which nature circulates water. In short, water evaporates from the ocean and rises to form clouds. Water in the air condenses and eventually falls back to the earth in the form of rain, snow, sleet, hail etc. which then eventually flows back to the ocean. We depend on precipitation that falls on land to replenish our fresh water supply. Precipitation can fall directly into water bodies, from run-off, or soak into the soil. Much is absorbed by plants or evaporates, but a portion seeps down into the groundwater. Technically, "groundwater" is water located in water-saturated zones below the surface. Water located in unsaturated zones is simply called"soil water." Groundwater is primarily stored in "aquifers." Usually, aquifers consist of gravel, sand, clay or fractured rock. Groundwater is stored in the pores and cavities of sediments or in rock fractures. It does not occur as an underground"ocean"or"river"except perhaps in a rare cave-type environment.Aquifers may consist of one continuous "layer" or as several layers stacked-up like pancakes. How Groundwater Moves Groundwater is added to (recharged) by water seeping down through the ground and is released (discharged) when it intersects a surface body of water such as a lake or stream or when it is pumped out. The surface area below the ground where the soil or rock is water saturated is called the "water table."The water table is not fixed. It can move up and down as water is removed from or added to the aquifer. In general, groundwater moves slowly. This is an important concept when considering groundwater contamination. The water can move as slowly as a few inches per year in clays. However, if the aquifer consists of loose sand and gravel, the groundwater can move hundreds of feet per year. Like water at the surface, groundwater moves with the gradient (i.e. downhill). However,groundwater can also move as a result of being under pressure. Pressurized water will move from high to low pressure areas.This works under the same principle as any material under pressure, such as fluid in an aerosol can. Page 12 of 15 Lois Lauer, Inc. 1998 Orange Tree Lane Redlands,CA 92374 Phone: (909)748-7019 ©2006 ' . Lois Lauer, Inc. Env^noChecknw Disclosure Report Property Address:Vacant Land, APN: O175O117G000O San uernonJom. San Bernardino County, CA Date: 9/250006 ��p���mmn��v� �OO�O�250O2G2 LEAKING UNDERGROUND FUEL TANKS The most common type of contamination comes from leaking underground bei tanks and piping systems. Underground tanks are common throughout California as well muthroughout the United States, These tanks anu —re—'� |nmn«y used for stodnQfuel,although solvents used inhigh technoloindustries this 'manner also. Why dndtanks? Many years ago, jurisdictions developed regulations with regards tofuel tanks for the ~eadhetio^ protection v/growing cities as well moproviding important fire measures. For these reasons,the majority offuel tanks must be buried, Unfortunately,the state building codes that regulate underground fuel tank construction did not keep up with changing technology. The result was that industry used traditional methods in building underground tanks and pipna Todoy, there are |mwo in place that ensure sthotbuilding codes are followed in new tank construction, as well an upgrade- ' hora||aub�andanJundorgmundtenku. When an underground tank leaks,the soil and/or groundwater can become contaminated. How much fuel actually gets into the soil depends nnhow big the leak isand how long the leak continues. Experience shows that leaking fuel~oeepo~into the ground at a generally slow rate and usually does not travel very far, "Seeping"fuel into the soil can be likened tuwetting the corner u/asponge.With only asmall amount ofwater,only the corner gets wet and the rest ofthe sponge remains dry. If leaking underground fuel tank is discovered, /be tank owner orresponsible party must notify the appropriate Regional Water Quality Control Board (RWQCB)or county-level agency and submit an"unauthorized release form". The responsible party must also make every effort tostop the leak and empty the tank ifnecessary. The RVVQCBorcounty-level agency will then undertake the lead in clean-up efforts. with the tank m*oar or responsible party reporting directly to them. Until investigation and cleanup are complete,the tank owner or responsible party must submit reports detailing cleanup efforts Ao the lead agency at least every three months, If the investigation fails to confirm that a leak has actually occurred, no further corrective action will be required. For those eiham that do require corrective octinn, the cleanup pmoeom could take e few months mmany years,depending unthe severity nf the leak. Additional information may be available through the Public Safety Officer or Hazardous Materials Specialist in your city. They are generally located in the Fire Department or Public Works Department. WHAT IS A "SUPERFUND" SITE? ^8upodund^ in o common term for a piece of legislation called the "Comprehensive Environmental Reapunoe Compensation, and Liability Act', which was ena�ed by Congress � oo on December 11. 1980. and is by the United -- States Environmental Protection Agency(EPA), This legislation provides funding for d �g waste sites in the United States. Because the moneys involved in clean up are large,this federal statute was dubbed"Superfund." The purpose ofGuperfundisUoclean u or mitigate hazardous materials that pose an immediate and substantial danger to the public orthe environment, This could b*achemical^spiU~that requires immediate response orusite that requires long- term nleon'upoction. ThauhemicalsfoundatSuparfund sites can vary but some have included familiar contaminants such as ammnio, lead and mercury. Other lesser known contaminants include toluene, pentachlorophenol and vinyl chloride. This Act also holds polluters liable for clean-up expenses as well as forces responsible parties to take clean-up actions, How does asite get on the Superfund|ist?P d sites from notification by the owner, complaints by citizens, identification by a state or local jurisdiction, or by special EPA investigations. A site is then placed on the Superfund, or"National Priorities List" (NPL) once the EPA determines that it represents a long-term threat to public health or the environment. The EPA makes this determination by evaluating such things as the likelihood that a site has released or has the potential to release hazardous substances into the environment, the characteristics of the waste(e.g.toxicity and waste quantity), and the number of people affected by the release, The government believes that^8uperfbnd^funding in warranted if the site poses a significant and immediate health concern. Even if federal funding is not provided,the site may require action under other statutes, Page 14of15 Lois Lauer, Inc. 1998Orange Tree Lane Redlands,CA82374Phone: (909)74S-7O1S 02006 ^ - ^ Lois Lauer, Inc. Env~roChecknw Disclosure Report Property Address:Vacant Land, APN: 0176U117GO0O0 San Bernardino, San Bernardino County, CA Date: 9/25/2006 Report Number: 2006092500262 DRINKING WATER: TAP VS. PRIVATE WELL Being in proximity to a contaminated site occasionally raises concern regarding the quality of the drinking water and whether ornot the contamination iopresent inthat water. One important question k/keep inmind iu"where does the drinking water come frnm... amunicipal water system oroprivate weU?^ The answer \othis question will help 0oresolve the issue nf contamination, |ngeneral, homes inurban areas are typically hooked upVoomunicipal water system. The water from this type ofsystem i* commonly referred oe'tap water. Municipal water suppliers are required xzmeet stringent drinking water standards set forth bythe USEPA. These drinking water suppliers provide reports,sometimes called consumer confidence reports,which outline where the water comes from and what substances are init. The municipal water supplier should beable/oprovide these reports upon request. On the other hand, if home is not hooked up to e municipal water source but instead is using a private well on the property,then the USEPA regulations donot apply. The homeowner imresponsible for the quality and safety ofthe drinking water. Keep in mind that being in proximity to a contaminated site does not necessarily mean the well will be contaminated. There is always the possibility that the contamination could be traveling in the opposite direction to where the private well is located, inwhich case the well water would remain uncontaminated. Another possibility iathat the contamination could he at a much shallower depth than whore the private well is drawing wmhs: If the private well is deep, then it possibly oon bypass contamination at more shallow depths. In any case, the VG EPA recommends that well owners have their water tested annually. ` ^ ~ For additional general information on environmental topics, contact the Public Affairs offinm of the California Environmental Protection Agency. This should be listed in the State government section of your local telephone book. Another good source nfinformation may befound bycontacting the environmental orhazardous materials specialist inyour City mrCounty Department u*Health. Page 15of15 Lois Lauer, Inc. 1S9OOrange Tree Lane Redlands,CA92374Phone: (gO8)748'7O19 @2006 ' Lois Lauer, Inc. EnviroCheckTm Disclosure Report Property Address:Vacant Land, APN: 0175O11760000 San Bmrnaro/no, San Bernardino County, CA Date: 9/25/2006 FORMATION OF PLUMES Report Number: 2006092500262 The Transport mfChemicals Into Groundwater Chemicals that are spilled or released into soil may dissolve in any water that is present. |nsome cases, the chemicals may hetransported into groundwater hywater slowly seeping downward, How fast this occurs and the details are mzmplex but water moves downward. Lateral movement is generally nc� w�n�osrdunh| w�ermauhmn the w�ertable, 'The contaminant concentration reaching groundwater is |eam than the concentration at the source because of dilution and breakdown that occur along the way. As contaminants are slowly transported dmwnwon1, they can chemically interact with other things in the water orsoil. This can temporarily orpermanently remove the contamination, Natural defense mechanisms such aobiological d ~—d-ti' �ra|ao act to naturally mitigate contamination to varying extents by removing or altering the contaminants. For some ho�eriathat live notue|/yinsoil and gmundvohercan me�bo|bamany of�eonntaminanmingasoUne. instance, Contaminants become "pollution' if they reach concentrations high enough to be judged harmful to humans or the environment. Groundwater standards are net by the United States Environmental Protection Agency (EPA) and state agencies. Contamination can originate from a "point source" such as o leaking underground tank, or from o "non-point" source such as infiltration from agriculture(i.e. pesticides and fertilizers)or urban run-off(i.e. road salt or trace metals left on roads from tires and car emionions). When contaminants enter the groundwater, they are slowly dispersed to form a diluted cloud or"plume."Chemical reactions and biological breakdown can continue. Pumping, complex flow patterns, chemical and biological processes all affect the trove|, size and shape o/plumes. Some contaminants may be removed by u process called^adonm8nn.^Adsorption is the process by which a chemical adheres to grains in the soil,Although this does not remove the contaminant,it may immobilize i\and help prevent i\from spreading, AGRICULTUl'"T IF Ground NO Surface POINT SOURCE RECHARGE POINT SOURCE IF water Table G&#idw**r FW*Direction Figure f. How econtaminant plume forms. Aplume forms/nthe direction o/groundwater flow, The size and extent of plumes are determined using 'monitoring wells.' Such wells also help track clean-up efforts. Information hommonduhng°m8mand other aoun� determine upmethods can vary widely depending onlocal site conditions. Page 13of15 Loin Lauer, Inc. 1998Orange Tree Lane Red|ando, CA 92374 Phone: (909)748-7019 @2008 C 0 11-11 LOIS Lauer, Inc. I MAP COVER PAGE Natural Hazard Disclosure ReportM Property Address:Vacant Land, APN: 0175 011 76 0000 San Bernardino, San Bernardino County, CA Date:9/25/2006 Report Number:2006092500262 Caeca e C va ¢� �ht a,er - 'D NOTE-This map is for general reference only.ANY USE OF THIS MAP IS AN ACKNOWLEDGEMENT AND AGREEMENT THAT ONLY THE INFORMATION ON THE STATUTORY FORM SHALL BE RELIED UPON FOR THE ACTUAL DISCLOSURES. Subject Property ® Special Flood Hazard Area li Area of Potential Flooding,Dam Failure N r very High Fixe Hazard Severity Zone D 0.25 0.5 Wt E Vt4ldtarrd Area,Substantial Forest Fire Risk miles Earthquake Fara Zone Seismic Hazard Zone,Landslide Seismic Hazard Zone,Liquefaction Lois Lauer,inc 1998 Orange Tree Lane Redlands.CA 92374 Phone(909)748-7019 02006 alifornia TaxDwa Property Address:Address Unassigned by County Parcel:0175-011-76-0000 REDLANDS,SAN BERNARDINO,CA Date:9/25/2006 Report Number:2006092500262 CTDR Report No.:538717 SECTION 4 CALIFORNIA TAX DISCLOSURE REPORT Table of Contents Summary of Current Property Tax Charges See Section 4,Page 2 Notice of Special Tax and Assessment Pursuant to Section 11 02.6b of the California Civil Code Mello-Roos Determination NOT IN See Section 4,Page 3 1915 Bond Act Determination NOT IN See Section 4,Page 3 Accelerated Foreclosure Notice See Section 4,Page 5 Senior Citizen Exemptions Explanation See Section 4,Page 6 Mandatory Notice of Supplemental Property tax Bill(s) See Section 4,Page 6 Pursuant to Section 1102.6c of the California Civil Code Property Tax Calculator See Section 4,Page 7 Supplemental Tax Bill Estimator See Section 4,Page 7 Future Property Tax Charge See Section 4,Page 9 Description of Current Property Tax Charges See Section 4,Page 11 Terms Conditions and Limitations See Section 4,Page 12 The Information provided In this report Is subject to the terms,conditions and limitations contained herein. CONFIRMATION OF RECEIPT: I (WE) ACKNOWLEDGE THAT I (WE) HAVE RECEIVED A COPY OF THIS REPORT WITH THE INCLUDED NOTICE(S) AND THAT I (WE)HAVE READ AND UNDERSTAND THESE DOCUMENTS. Date: October 2, 2006 Transferee's Signature(Buyer): Jon Hartison, Mayor—, Date: October 2, 2006 ATTEST LOT'rie Poy0',e , City Clerk Page:1 if 12 California Tax Data Property Address:Address Unassigned by County Parcel:0175-011-76-0000 REDLANDS,SAN BERNARDINO,CA Date:9/25/2006 Report Number:2006092500262 CTDR Report No.:538717 SECTION 4 CALIFORNIA TAX DISCLOSURE REPORT Table of Contents Summary of Current Property Tax Charges See Section 4,Page 2 Notice of Special Tax and Assessment Pursuant to Section 1102,6b of the California Civil Code Mello-Roos Determination NOT IN See Section 41 Page 3 1915 Bond Act Determination NOT IN See Section 4,Page 3 Accelerated Foreclosure Notice See Section 4,Page 5 Senior Citizen Exemptions Explanation See Section 4,Page 6 Mandatory Notice of Supplemental Property tax Bill(s) See Section 4,Page 6 Pursuant to Section 1102.6c of the California Civil Code Property Tax Calculator See Section 4,Page 7 Supplemental Tax Bill Estimator See Section 4,Page 7 Future Property Tax Charge See Section 4,Page 9 Description of Current Property Tax Charges See Section 4,Page 11 Terms Conditions and Limitations See Section 4,Page 12 The information provided In this report Is subject to the terms,conditions and limitations contained herein. CONFIRMATION OF RECEIPT: I (WE)ACKNOWLEDGE THAT I (WE) HAVE RECEIVED A COPY OF THIS REPORT WITH THE INCLUDED NOTICE(S) AND THAT I (WE)HAVE READ AND UNDERSTAND THESE DOCUMENTS. Date: Transferee's Signature(Buyer): Date: Transferee's Signature(Buyer): Page:1 of 12 FcaliforniaTax Data Property Address:Address Unassigned by County Parcel:0175-011-76-0000 REDLANDS,SAN BERNARDINO,CA Date:9/25/2006 Report Number:2006092500262 CTDR Report No.:538717 BREAKDOWN OF THE 2005-2006 PROPERTY TAX BILL This report is an estimate of the original secured property tax bill charges for the above-mentioned property using information obtained from the County on a given date.Changes made by the County or the underlying public agencies levying charges against this property after the date of this report may not be reflected in this report. Basic Prop 13 Levy 1, All Ad Valorem Charges Prop 13 $589.53 County of San Bernardino (800)442-2283 General Service Voter Approved Ad Valorem Taxes Basic Prop 13 Levy&Voter Approved Ad Valorem Taxes: $589.53 Estimated Tax Rate: 1.235% Direct Assessments 2, Vector Control-Redlands Vector Control District $10.26 County of San Bernardino (800)442-2283 VECTOR CONTROL Total Direct Assessment Charges: $10.26 Total 2005-2006 Amount. $599.79 Page:2 of 12 ` ` . . NOTICE OF SPECIAL TAX AND ASSESSMENT TO THE PROSPECTIVE PURCHASER OF THE REAL PROPERTY KNOWN AS: Assessor's Parcel Number-o176-o11-76emon.Property Address w,Legal Description.Address Unassigned uvCounty THIS IS A NOTIFICATION TO YOU PRIOR TO YOUR PURCHASING THIS PROPERTY. I, MELLO~ROOS COMMUNITY FACILITIES DISTRICTS Mello-Roos Community Facilities Districts ("CFD") provide m method of financing certain public capital facilities and services especially indeveloping areas and areas undergoing rehabilitation. Public improvements funded byMello-Roos CFDs may include,but are not limited to, roads, schools,water, sewer and storm drain facilities. Public services funded hfMello-Roos CFDomay include,but are not limited to,police and fire protection services, recreation program services, and flood or storm protection services, K«aUn'Rooa CFDo commonly fund the construction of public improvements through the issuance of bonds. A opedo| tax lien is p|moa6 on property within the district for the annual payment of principal and interest auwell oo administrative expenses.Typically, the annual special tax continues until the bonds are repaid, uruntil special taxes are nnlonger needed, Mello-Roos special tax rates may increase each year, in most instances but not all,the special tax\ocollected with regular property taxes Properties located within o K8e||n'Rnou Community Facilities District are subject to a smaniu|tox, which is in addition to the regular property taxes and any other charges and benefit assessments that will belisted unthe property tax bill,This special tax may not he imposed on all parcels within the city orcounty where the property is located. The special tax io used to provide public facilities or services that are likely to particularly benefit the property. THIS PROPERTY IS NOT SUBJECT TO MELLO-ROOS COMMUNITY FACILITIES DISTRICT SPECIAL TAX 3' 1915BOND ACT ASSESSMENT DISTRICTS 1915 Bond Act assessment districts provide u method of financing certain public capital facilities. Public improvements funded by 1915Bond Act districts may include, but are not limited to, madm,sewer, water and storm drain eystemo, and street lighting. 1915 Bond Act assessment districts commonly fund the construction of public improvements through the issuance of bonds. Aepecia| assessment lien is placed on property within the ou000nment district, The lien amount is calculated according to the specific benefit that individual property nooeiwam from the improvements and is amortized over period of years. 1915 Bond Act muueuomon\a can be prepaid at any time. In most instances but not all, the assessment iacollected with regular property taxes. Properties within o 1915 Bond Act assessment district are subject to annual assessment installments (a W1e||n-Rnnn Community Facilities District special tax and the 1915 Bond Act Assessment District annual oaxemxmen\ installments are hereinafter collectively referred to as "Special Lienm"), which are in addition to the | and any other charges and benefit assessments that will belisted onthe property tax bill. The assessment district issues bonds to finance the acquisition or construction of certain public improvements that are nfdirect and special benefit tuproperty within the assessment district. The bonds will berepaid from annual assessment installments on property within the assessment district, The special assessment is used 0oprovide public facilities that are likely toparticularly benefit the pn4oaMy. ITHIS PROPERTY IS NOT SUBJECT TO IMPROVEMENT BOND ACT OF 1916 SPECIAL ASSESSMENT LIEN(S). Notice mSpecial Tax and Assessment Form,0California Tax Data,enVe Page:3o//c NOTICE OF SPECIAL TAX AND ASSESSMENT (continued) TO THE PROSPECTIVE PURCHASER OF THE REAL PROPERTY KNOWN AS: Assessor's Parcel Number:0175-011-76-0000,Property Address or Legal Description:Address Unassigned by County THE INFORMATION PROVIDED IN THIS REPORT WAS PREPARED BY NATIONAL TAX DATA, INC. dbe CALIFORNIA TAX DATA (-CTD-) AND IS SUBJECT TO THE TERMS AND CONDITIONS CONTAINED HEREIN. THE PURPOSE OF THIS REPORT IS TO ASSIST THE SELLER IN FULFILLING HIS OR HER LEGAL DISCLOSURE REQUIREMENT PURSUANT TO CALIFORNIA CIVIL CODE§ 1102.68, THIS REPORT WAS COMPILED USING INFORMATION OBTAINED FROM THE COUNTY, VARIOUS GOVERNMENTAL AGENCIES AND THIRD PARTIES.CTD IS NOT RESPONSIBLE FOR ANY INACCURACIES OR OMISSION IN THE PUBLIC RECORDS OF THE COUNTY,VARIOUS GOVERNMENTAL AGENCIES OR FOR INFORMATION PROVIDED BY THIRD PARTIES. THIS REPORT IS NOT A SUBSTITUTE FOR A TITLE REPORT OR TITLE INSURANCE AND MAY NOT BE RELIED UPON AS SUCH, THE BUYER'S CONFIRMATION OF RECEIPT IS LOCATED ON PAGE ONE OF THIS REPORT. Notice of Special Tax and Assessment Form,0 California Tax Data,2006 Page:4 of 12 California TaxData Property Address:Address Unassigned by County Parcel:0175-411-76-0000 REDLANDS,SAN BERNARDINO,CA ©ate:912512406 Report Number:2006092500262 CTDR Report No.:538717 ACCELERATED FORECLOSURE INFORMATION Any Community Facilities or 1915 Bond Act Districts that are listed below carry accelerated foreclosure liens. This means that these Commnunity Facilities or 1915. Bond Act Assessment Districts have the right(and if bonds are issued,the obligation)to foreclose on property when the special taxes are delinquent for more than 90 days.Additionally,any costs of collection and penalties must be paid by the delinquent property owner. SENIOR CITIZEN EXEMPTIONS No exemptions are available. Page:6 of 12 . . �~ �*� ~�auuwx��^a�^�^�'m�w Property Address:Address Unassigned by County pmnmun17o*11-7o-0ono nsouAmos`SAN asnw»xmwo.Cx Date:9/2512006 Report Number:2ooeoousonuoc CToR Report wn.'n3o71r NOTICE OF SUPPLEMENTAL PROPERTY TAX BILLL Pursuant hnCivil Code§11O2.Go. Seller orhis ovher agent improviding this"Notice ofYour'SupplementaY Property Tax BU}^: California propertytax law requires the Assessor to revalue real property atthe time the ownership of the property changes. Because of this law,you may receive one mtwo supplemental tax bills,depending nn when your loan closes. The supplemental tax bills are not mailed to your lender. If you have arranged for your property tax payments to be paid through an impound account,the supplemental tax bills will not be paid by your tender, |timyour responsibility to pay these supplemental bills directly 0othe Tax Collector. If you have any question concerning this ma8e/, p)aoee call your local Tax Collector's Office." Explanation of Supplemental Assessments As stated in the official "Notice"above, State law requires the Assessor to reappraise property upon change inownership orcompletion ofnew construction. The resulting supplemental assessment reflects the difference between the new value and the old value, The Auditor-Controller calculates the supplemental property tax, and prorates it, based upon the number of months remaining in the fiscal year in which the event occurred. The fiscal year runs from July 1 through June 30. Aohao8e in ownership urnew construction completion which occurs between January 1 and May 31 results intwo supplemental assessments and two supplemental tax bills. The first supplemental bill is for the remainder ofthe fiscal year in which the event occurred. The second supplemental bill is for the subsequent fiscal year. Notices ofAssessed Value Change are normallymailed boproperty owners before supplemental tax bills are issued. Remember that supplemental tax bills are inaddition tpthe regular annual tax bills. Supplemental bills 0odirectly tothe property owner, and not to aninnpuundacuount-whereonemight exist. 0nthe following page, aSUPPLEMENTAL TAX B|L4S)ESTIMATOR isprovided for the buyer toestimate the amount n/ the supplemental tax biN<a>. |tdoes NOT include the amount ofthe regular secured Property Tax Bill. {tiaonly anestimate for the buyer's planning purposes. PC,A for ni a Tax Data Property Address:Address Unassigned by County Parcel:0175-011-76-0000 REDLANDS,SAN BERNARDINO,CA Date:9125/2006 Report Number:2006092500262 CTDR Report No.:538717 TAX ESTIMATORS PROPERTY TAX ESTIMATOR The following schedule is offered as an aid in estimating the amount of property taxes that will be levied on the property this year based on an assessed valuation equal to the selling price. The estimate is not a substitute for a tax bill, nor does it anticipate new property tax charges or fees or other changes in property tax rates for the next tax year. 1 Estimated Sales Price..................................................................................• 1 $ 2 Estimated Ad Valorem Tax Rate..... .............................. ........• 2 0.01235 3 Multiply line 1 by line 2. This is your Estimated Ad Valorem Taxes...................................................• 3 $ 4 Direct/Special Assessments.......................................................................« 4 110.26 5 Add lines 3 and 4. This is your Estimated Total Annual Property Tax Amount..........................• 5 $ NOTE: The amount estimated on tine 5 may not appear on the first annual property tax bill because reassessment by the county is not immediate. For that reason you may receive one or two Supplemental Tax Bill(s) that are independent of the regular annual property tax bill until the new assessed value is included on the annual property tax bill. To estimate the amount of the Supplemental Tax Bill(s), use the form below. SUPPLEMENTAL TAX BILL ESTIMATOR The following schedule is provided for you to estimate the potential amount of the supplemental ad valorem tax on a given property. It does NOT include the amount of the regular annual Property Tax. This provides an estimate of the "Supplemental Property Tax Bill(s)" that you can expect to receive during the first year of ownership, and is for your planning purposes only. 1 Estimated Sales Price..................................................................................0 1 $ 2 Estimated Current Assessed Value.................................. .............s 2 $47,737.00 3 Subtract line 2 from line 1, This is your Estimated Supplemental Assessed Value................................+ 3 $ 4 Multiply line 3 by 0.01235.(The Estimated Ad Valorem Tax Rate for your property) This is your Estimated Full-Year Supplemental Tax Obligation...... 4 $ (For easy reference carry line 4 over to next page) Please continue on following page Page:7 of 12 SUPPLEMENTAL TAX SILL ESTIMATOR(continued) To THE PROSPECTIVE PURCHASER OF THE REAL PROPERTY KNOWN AS: Assessor's Parcel Number:0175-011-76-0000,Property Address or Legal Description:Address Unassigned by County 4 This is your Estimated Full-Year Supplemental Tax Obligation................... 4 $ If your Close of Escrow falls during the months of January through May,you will receive TWO Supplemental Tax Bills,one for the current partial tax year and one for the next full tax year. Estimate the Supplemental Tax Bill amounts with lines 5 through 8 below: 5 Enter the factor for the Month of Sale from TABLE 1 below................. -• 5 6 Multiply line 4 by line 5. This is the amount of your estimated Supplemental Tax Bill#1..................o 6 $ 7 Enter the amount on line 4. This is the amount of your estimated Supplemental Tax Bill#2..................• 7 $ 8 Add lines 6 and 7.This is your total estimated Supplemental Tax Bill.........i 8 $ If your Close of Escrow falls during the months of June through December,you will receive ONE Supplemental Tax Bill.Estimate the Supplemental Tax Bill amount with lines 9 and 10 below: 9 Enter the factor for the Month of Sale from TABLE 2 below........................a 9 10 Multiply line 4 byline 9. This is the amount of your total estimated Supplemental Tax Bill................• 10 $ TABLE 1. Month-of-Sale Factor TABLE 2. Month-of-Sale Factor Jan 0.4170 Jun 1.0400 Feb 0.3333 Jul 0.9167 Mar 0.2500 Aug 0,8333 Apr 0.1667 Sep 0,7500 May 0.0866 Oct 0.6670 Nov 0,5830 Dec 0,5000 The information on this page is an estimate only. The purpose of this"ESTIMATOR" is to assist the taxpayer in planning for his/her supplemental taxes. The estimated supplemental tax shown herein is not a substitute for the supplemental bill and may not be relied upon as such. This "ESTIMATOR" requires the buyer's projection of the Purchase Price as well as Month in which the transaction is completed. No potential exemptions are reflected in these determinations. FANHD shall not be responsible or liable for any losses, liabilities or damages resulting from use of this Supplemental Tax Estimator or the Property Tax Estimator. Page:8 of 12 Tax Data =, ~�a^"^u"^^^���+^^^_�^^w Property Address.,Address Unassigned»yCounty Parcel:0175-011-76-0000 nEuL^mux.SAN uExm*xo/mo.cx Date:9/2512006 Report Number:cnneVouunnuou oToRReport mo.:noor1r �U0�UD��� ����������� ���� ����������� FUTURE PROPERTY���� " � "��^^ �," .��"^����~° The following represents recent elections held inthe County that may affect the subject property. This information has been collected from third-party anuoeo on o given date, and may not represent all property tax elections that will affect this property. Additional property tax districts may be in the process of formation that will not be listed here, Changes made by the County or the underlying public agencies levying charges against this property after the date ofthis report may not be reflected inthis report, 1 San Bernardino Community College District General Obligation Bond 11/5/2002 To proepare students for training, repair aging buildings, classrooms, labs, upgrade earthquake safety; upgrade wiring/equipment for computer technology;construct,acquire and equip modern buildings/libraries,science/computer labs/classrooms;and improve campus security, San Bernardino Community College District shall issue $190,OGO,000 of bonds at legal rates, appoint a citizens oversight committee,and perform annual audits to ensure no money is used for administrators'salaries. 2 Bear Valley Unified School District General Obligation Bond 11/5/2002 Bear Valley Unified School District shall repair local oohun|s, oUeo, replace deteriorating portable d000momo, improve student safety conditions, upgrade electrical wiring to accommodate technology, install energy efficient heating/ventilation oymemu, repair, acquim, construct. and equip school |ibroriov, olaoomoma' cafeterias, p|wn bing/restrooms, qualify for State matching*unds,by issuing$25.000.000 of bonds at legal inv»naot mtea,appoint o Citizens Oversight Committee and perform annual audits mensure that nobond money iaused for administrators'salaries. 3 Redlands Unified School District General Obligation Bond 11/5/2002 Redlands Unified School District shall issue vpto$6V.00o.V0U|nbonds. 4 Ontario-Montclair School District General Obligation Bond 11/5/2002 Ontan*Mon,oloirBememary School District shall repair local K-n schools/sites; improve mv4ant safety conditions; upgrade electrical wiring for technology/fire ng systems; en|eoe aging plumbing; fix nmfs/bammmnm; ,epoi', ooqvke construct, equip |/bmhes, classrooms; reduce classroom overcrowding;qulify for State matching funds, by issuing $5g.655.UOOo(bonds at legal e**m. appoint oCitizens Oversight Committee and perform annual audits to ensure that no bond money is used for administrators'salaries. 6 Copper Mountain Community College District General Obligation Bond 11/212004 To strengthen local job training programs and ioomaoo academic classes for students with 2 and 4year college goals by adding o|aommomm and tech labs; renovating unsafe and deteriorating campus buildings; d repairing, acquiring, ounmhncting,furnishing and equipping rn||eqe facilities,the Copper Mountain Community College District issue$19.720.000 of bonds, at legal rates, with accountability safeguards, including an independent Citizens Oversight Committee and annual audits,with nomoney used for udminsteuxsalaries. a Apple Valley Unified School DhmNic* General Obligation Bond 31212004 To relieve oovnm overcrowding by building a new elementary school and middle woonn|and adding uu*inool c|000mnms, upgrade oldelectrical systems, replace aged and inadequate restrooms, plumbing and septic facilities, remove asbestos to safeguard student health and qualify for state matching funds,the Apple Valley Unified School District will issue$36million in bonds at legal nymwo. with annual audits and u c8usn, oversight cummittne, with all proceeds spent locally to benefit neighborhood schools. 7 San Bernardino City Vmlfwd School District General Obligation Bond 31212004 Toimprove student safety, repair local schools and relieve overcrowding by: installing/repairing fire safety equipment; fixing leaky moft/dwalls; removing asbestos; upgrading bath,nnm», plvm»inQ, sewers/electrical wiring for computer technology; uumnng new schools; improving disabled access; repoiring, expanding, constructing, acquiringlequipping d000mnmo. |oho. u8ea libraries, the Son Bernardino City Unified School District will issue $140.008.000 in bondu, at legal rates,with guaranteed annual audits,citizen's oversight,and no money for administrators salaries, Page:aov1u alifornia fax Data Property Address:Address Unassigned by County Parcel:0175-011-76-0000 REDLANDS,SAN BERNARDINO,CA gate:912512006 Report Plumber:2006092500262 CTDR Report No.:538717 FUTURE PROPERTY TAX CHARGES 8 Morongo Valley Community Services District Parcel Tax 3/2/2004 A limited 4 year General Tax terminating June 30, 2007 in the amount of$49.50 per year per parcel, both developed and undeveloped within the Morongo Valley Community Services District , will be authorized to fund general governmental purposes,allowing for full-time fire protection and emergency response services. 9 Morongo Unified School District General Obligation Bond 1118/2005 To repair deterioratinglaging classrooms, restrooms, plumbing, electrical systems and other campus facilities; make safety improvements for fire/health emergencies and security upgrades; renovating classrooms, science and computer labs and technology centers;to build and make improvements to school facilities. x v Page:10 of 12 G is ii California Tax Data Property Address: Address Unassigned by County Parcel:0175-011-76-0000 REDLANDS,SAN BERNARDINO,CA Date:9/2512006 Report Number:2006092500262 CTDR Report No.. 538717 DESCRIPTION OF PROPERTY TAX CHARGES Ad Valorem Tax An Ad Valorem Tax is a tax levied on a parcel that is calculated based on the assessed value of the parcel.Ad valorem taxes may include those taxes that were approved by voters before that passage of Proposition 13 in 1978, General Obligation Bonds or Special Taxes that are based on assessed value as opposed to some other method.Taxes that were established before 1978 may be used for various services and improvements and may or may not be associated with public indebtedness (the issuance of municipal bonds).A General Obligation Bond is a municipal bond that may be issued by a city,county or school district in order to finance the acquisition and construction of public capital facilities and real property. Equipment purchases and the cost of operation and maintenance cannot be financed with a General Obligation Bond. Special Taxes are created pursuant to various California Code Sections and require 2/3 majority approval of the qualified voters for approval. A special tax is may be formed by a local government (a city, county, special district, etc—) in order to finance specific facilities and/or services and cannot be used for general purposes, Vector Control District A Vector Control District is a special assessment district created pursuant to the Health and Safety Code Section 2270 et seq., in order to collect costs of a local government (a city, county, special district, etc...} related to vector control. One-time abatements include a notice to the property owner prior to abatement followed by a public hearing. Upon abatement, if the amount owing remains delinquent,a recorded lien is placed on the parcel for the abatement amount,which may include a surcharge that is usually 10%of the amount or is an administrative charge based on actual administrative costs. Ongoing abatements are established upon majority approval of the property owners during an assessment balloting procedure. Page:11 of 12 al forma fax Data Property Address:Address Unassigned by County Parcel:0175-011-76-0000 REDLANDS,SAN BERNARDINO,CA Date:9/25/2006 Report Number:2006092500262 CTDR Report No.:538717 TERMS, CONDITIONS AND LIMITATIONS This report and the determinations made herein were prepared by California Tax Data, Inc. ("CTD"), Only the buyer(and his/her agent) and the setter(and histher agent)may use or rely on this report.The determinations made in this report are time-sensitive. Therefore, the information in this report may be considered accurate only as of the date shown herein. Governmental actions occurring after the date of this report are not disclosed, and CTO are under no duty to update this report when or if new tax information is released or becomes available.The sole purposes of this report are to(a)make preliminary determinations regarding whether current secured tax rolls contain Mello-Roos Community Facilities District Special Taxes or 1915 Bond Act Special Assessments against the subject property, and (b) assist the seller in fulfilling his/her duty to comply with California Civil Code 1102.6b.This report is not a substitute for a title report or title insurance and may not be relied upon as such. This report is for the exclusive benefit and reliance of the specific buyer and specific seller mentioned herein and there shall be no third party beneficiaries.This report may not be used in any subsequent transaction affecting the subject property, This Report addresses special tax assessment matters only. It does not address matters related to (a) title or title defects, (b) earthquake zones, flood zones, fire zones or other natural hazard zones, (c)survey or geologic issues, (d)land use or zoning, (e) the California Subdivided Lands Act or the Subdivision Map Act,(f)compliance with other federal,state or local laws,ordinances or restrictions that may apply to the property,such as the Americans with Disabilities Act and building codes, (g)restrictions affecting the use, occupancy or development of the property imposed by any state, local or federal governmental agency, including without limitation,flood control districts,the California Coastal Commission,joint power districts,water districts,agencies or school districts, (h) any permits of any nature that may be required for the current or anticipated future use of the property, or (i) any other legal concerns that might affect the property. CTD has prepared this report solely based upon records and information provided by various governmental and private agencies. CTD has assumed that these records and information are accurate and complete, and CTD have not conducted any independent verification of their accuracy or completeness. CTD hereby disclaims all liability and shall not be responsible for any inaccuracies or omissions in the public records or information supplied by the various governmental and private agencies supplying information to CTD. In order to prepare this report, either the seller(or his/her agent)or the buyer(or his/her agent)supplied CTD with the Assessors Parcel Number("APN") for the subject property. CTD has not verified the accuracy of the APN. This report was prepared based upon such APN,and CTD shall not be responsible or liable for any losses, liabilities or damages resulting from an incorrect APN. If the subject property is considered a multi-parcel property, this tax report may only reflect the information related to the primary parcel. In preparing this report,California Tax Data has relied upon the statutes identified and has reviewed the records referred to in each determination. These are available to the public as Government Records to make the determinations if and to what extent each special tax and assessment statute applies to the subject property.This report is not a warranty or a policy of insurance, BY ACCEPTING OR USING THIS REPORT, THE BUYER AND SELLER HEREBY AGREE TO BE BOUND BY ALL OF THE TERMS,CONDITIONS,AND LIMITATIONS OF LIABILITY STATED HEREIN. 02006 California Tax Data 100 Pacifica,Suite 470,Irvine,CA 92818 877-346-3829 Page-12 of 12 is AMENORD ESCROW INSTRUCTIONS TON 1`#aps;Lmo DeLa: 0240r°xOtf7 +'� 11edii,CA: !'A Bsr ldb._ i8�39-LL 7�s raeMGr •wac @IoII)7N�!t5li BsooW Officet Llsa Lan Prop"Ad;; - VaowtLandAPN#Q.175-011.76 lM emw DIVISION Sart Gema . A My previmm.1noructlim b tttt abo"nutlb6r*d;6*mm ace:horetyreuppfemertedkw ar»onded In fe to11W#hv.RWftAars only. Gose of1mrwIlmlivreby eitkmdeillw'60 ou'A l"ke l4iny',0 2007 AN othw tsmu and corm flonr of thlo escrow sha4 fairish V*swrW AN pet"soft th Is inslrtxtlon acknowledge.Tftw of a copy of awroc 's�a�rtn�tanMOM!+u; T Nurrrtr aaa er st r�rbSte _... .. �iFouaa bera+s wwF �� Sk1��N0Yif�rl,fii.Hkf�O COh�J�EN71.Y YitTF{�IE< OP Mf �'tJC1�ONS TO TNS ESN 1itXT)�i. BUWS 5iQrW*" et'sr! City of Redlands,a Mut Mpa!Corporation The bvoopiabkFtonity Trust Dated f2130/}3 [3y: by` Hna(/yor Pexer.A.Ntifca,t tvstpe Teresa Ballinger Assistant City Clerk AUNNDI D MCROW INSTRUCTUNU TO 19"Onw,90 Tr"Later Dam OW=007 PAWM16%CA 02374 Escrow No.: 19739-LL f"Y404000 •PW 0"740-MO Escrow Otllccr: Lice Lara Property Address: Vacetrt Land AFN#0175-011-76 I*Cmm Mum" Sac Bernardino,Ch My y p wWom lndnxffw4 in the above nmbared escrow are hereby u pplortm tsdtar wronded fn the kAkyMrtg psr*:uMrs Close of Escrow is hereby extended to be as or before.May 29,2007 M o0w temm and cmd1dom of this escrm oho ramaln the acme. AN panes aOft 0**mOu[tlogl adux W edge n3pW of a copy of aenns. TM MT"TO M SOW AGAW THAT THEY MU MaWY t HOLDER,9Y 9WAR4TE YYanTB!MOTM OF ANY O AODlWO MMR DHEnM UAM TO THESE ESCROW IMBTFi1C M SUCH NOTICE Y&L 6E DM AUM OOMC O MBMY%M THE DEU SRY OF THESE ES(XSO RVR XTIONS TQ T}E ESCROW HOLDER SuWS S~*Sipaahm Cfty of cis,a ntticipel Carporatfast Tisk Chicsman Irrevocable Finaily Trust Dared 12/30/93 13y by. j Peter A.Mflmo Trustee, �.� Che nil Doty,TrtTp* Teresa Ballinger Assistant City Clerk f AMENDED ESCROW INSTRUCTIONS TOI 1898 Ova gr Troo Larm Date: 02120/2007 Rtdlanrs,CA 92.374 Esaow No.: 18739-LL t909►748.70ee . Frog ttoe►740-7130 °w Offccr. Lise Las Property Address: Vacant Land APN#0175-011-76 racRClw DIVIlam N Sat Bernardino,CA My previous Instructions in the above numbered escrow aro hereby suppien-anted/or amended In the N11owing particulars only. Close of Escrow is hereby extended to be on or before May 29,2007 All other terms and conditions of this escrow WWI remain the same. All parties CgnMg this Instrvc tlon scknowfedge reoWO of s Dopy of same. THE PARTIES TO TM ESCROW AGREE THAT THEY WILL NOTIFY ESCROW HOLDER,BY SUVATE WRITTEN NOTM OF ANY CHANGES,ADDITIONS ANDIOR DELETIONS MADE TO THESE ESCROW INSTRUCTICIft SUCH NOTICE WILL BE DELNERED CONCURRENTLY WITH THE DELIVERY OF THESE ESCROW INSTRUCTIONS TO THE ESCROW HOLIER Buyses Signature Seller's Signature City of Redlands,a Municipal Corporation no Chiesrnan Irrevocable Family Trust Dated 12/30/93 By: by: Jon Harrison„Mayor Pater A.Miko,Trustee Lorrie Poyzer,City Clerk Cherril Doty,Trustee AGREEMENT FOR PURCHASE AND SALE AND ESCROW INSTRUCTIONS THIS AGREEMENT FOR PURCHASE AND SALE AND ESCROW INSTRUCTIONS ("Agreement"), dated September 19, 2006 ("Effective Date"), is made and entered into by and between the City of Redlands, a municipal corporation ("Buyer"), and The Chiesman Irrevocable Family Trust ("Seller") who are sometimes individually referred to herein as a "Party," and collectively, as the "Parties." RECITALS A. Whereas, Seller owns certain real property in the City of Redlands which is designated as County of San Bernardino Assessor's Parcel Number 0175-011-76 totaling approximately 6.7 acres (the"Property"); and B. Whereas, Seller agrees to sell to Buyer and Buyer agrees to purchase from Seller the Property for open space purposes, subject to the terms and conditions contained herein, and as further described in the Grant Deed attached as Exhibit "A" and shown on the map attached as Exhibit *'B;" NOW THEREFORE,in consideration of the mutual promises contained herein,the Parties agree as follows: AGREEMENT I PURCHASE PRICE The total price for the Property to be paid at Close of Escrow shall be Two Hundred Eighty Five Thousand ($285,000) Dollars (the "Purchase Price"). 2. TITLE TO PROPERTY Seller shall, at Close of Escrow, by Grant Deed substantially in the form attached hereto as Exhibit"A,"convey the Property to Buyer free and clear of any existing liens 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 Property issued by Community Title (the "Title Company")showing title vested in Buyer,subject to the exceptions to title approved by Buyer pursuant to Section 3.1 below. DMAgee'purchase and sale m;kc,-,pd 9-6-06 3. CONDITIONS OF PURCHASE Buyer's obligation to purchase the Property 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 Seller and Buyer, Escrow Holder shall deliver to Buyer a current preliminary title report("PTR"),including documents referred to therein. 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 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 Property. 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 Seller, and Seller 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 Section 3.1,shall not include any obligation of Seller to expend any money or commence any legal action to correct any exceptions within the three(3)day period. Seller shall notify Buyer,in writing,of any disapproved title exceptions which Seller is 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 Seller and Escrow Holder (i) to terminate this Agreement,or (ii) 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 Seller. 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 as disclosed in such Inspections within thirty (30) days from the opening of escrow. Any disapproval of the condition of the Property shall be in writing and given to Seller within such thirty(30)day period. In the event Buyer does not disapprove the condition of the Property within the thirty (30) day period, this condition shall be deemed waived. In the event Buyer disapproves the condition of the Property within the thirty (30) day period, this Agreement shall terminate and the Parties shall be relieved from any further liabilities and obligations under this Agreement. DJM,-Ageepurchase and sale inko,wpd 9-6-06 4. ESCROW 4,1 ONning. 'rhe purchase and sale of the Property shall be completed through an escrow ("Escrow") to be opened at Lois Lauer Realty Escrow(the "Escrow Holder"). Within five (5)days after the Seller's execution of this Agreement, Seller 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 Seller 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 October 20, 2006. 4.3 Costs. Except as otherwise expressly provided for herein, Buyer shall pay the Escrow fee and all of any such other costs and charges normally paid in an escrow closing in San Bernardino County. 4.4 Additional Documents. Buyer and Seller 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 Grant 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. SELLER'S REPRESENTATIONS,WARRANTIES AND ACKNOWLEDGMENTS Seller hereby makes the following representations, warranties and acknowledgments and agrees that such representations,warranties and acknowledgments shall survive the Close of Escrow. 5.1 Seller has full right, power. and authority to execute this Agreement and to convey title to the Property to Buyer as provided herein. 5.2 Seller is 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. 5.3 This Agreement has been duly approved and executed by Seller and constitutes the valid and binding Agreement of Seller enforceable against Seller in accordance with its terms. DJ V'1' and sale miko wpd 9-6-06 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 of Buyer to purchase the Property from Seller, 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 Seller at Close of Escrow shall be duly authorized, executed and delivered by Buyer and shall be legal, valid and binding obligations of Buyer 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(ii) Seller,nor anyone acting for or in behalf of Seller,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. By execution of this Agreement, Seller, in behalf of itself, and its successors and assigns hereby acknowledges that this Agreement provides full payment for the acquisition of the Property by Buyer,and Seller hereby expressly and unconditionally waives any claims for damages, relocation assistance benefits, severance damages, interest, loss of goodwill, claims for inverse condemnation or unreasonable precondemnation conduct,or any other compensation or benefits, 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 Property. B. This Agreement arose out of Buyer's efforts to acquire the Property through its municipal authority. Seller, in behalf of itself and its successors and assigns, hereby fully releases 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 DMAg 9-6-06 ree purchase and sale miko,wpd 4 of or related to Buyer's efforts to acquire the Property. Seller hereby acknowledges that it has been advised by its attorneys concerning, and that Seller is 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." Seller acknowledges that it 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, Seller hereby acknowledges that this Agreement has been negotiated and agreed upon in light 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. Seller: Buyer: The Chiesman Irrevocable Family Trust City Manager P. O. Box 116 City of Redlands Santa Barbara, CA 93102 PO Box 3005 Redlands, CA 921373 9. GENERAL PROVISIONS 9.1 Entire Aareement. 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 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 oblications of Buyer and Seller under this Agreement and the Escrow shall be joint and DAV'Azee%purchase and sale miko wpd 5 9-6-06 several. 92 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 Seller's full performance of all duties imposed on Seller in this Agreement. 9.4 Seller's Performance. Close of Escrow and performance of any duty imposed on Seller 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. 9.8 Amendment. Any amendment to this Agreement shall be in writing and executed by the Parties. DPM`Agree'purchas,e and sale miko wpd 9-6-06 6 IN WITNESS WHEREOF,the Parties hereto executed this Agreement on the dates set forth opposite their respective signatures hereto. SELLER: Executed this /3day 2006 By: c''L � ... — Cherril Doty, Trustee at Redlands, California By Executed this_day of 2006 Peter Miko, Trustee at Santa Barbara,California. BUYER: CITY OF REDLANDS X, By: Executed this 19,diday of se2tember, 2006 A IT, Harrison, Mayor at Redlands, California ATTEST: By: LorrieJ'(oyzer, City�erk' DPWAgree,purchase and sale miko revisedwpd 9-6-06 7 IN WITNESS WHEREOF,the Parties hereto executed this Agreement on the dates set forth opposite their respective signatures hereto. SELLER: By: Executed this_day of 2006 Cherril Doty, Trustee at Redlands, California By Executed this N day of SCAT 2006 Peter Miko, Trustee at Santa Barbara, California. BUYER: CITY OF REDLANDS By: 1T Executed this 19 thday of September 2006 77—� Jo`n Harrison, Mayor at Redlands, California ATTEST: By> Lorne ovzer, Cit DJVTAgree�purchase and sale miko,wpd 9-6-06 7 STATE OF CALIFORNIA ss. COUNTY OF SANTA BARBARA ) On this 14 day of September, 2006, before me Greg D. Merrill, Esq. the undersigned, a Notary Public in and for said state and county, personally appeared Peter A. Miko, personally known to me, (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument, and acknowledged to me that he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. Witness my hand and official seat. (seal) Greg D. Merrill ' Notary Pub!ic-Cahfornia Santa Barbara County ikD Merrill, Esq. "Co".Commission 4 1490597 Greg DExpires May 20,200810 Recording Requested By and When Recorded Mail to: City Clerk City of Redlands P.O. Box 3005 Redlands CA 92373 EXHIBIT "A" GRANT DEED FOR VALUABLE CONSIDERATION, the receipt and sufficiency of which is hereby acknowledged, [ name ] ("Grantors"), hereby grant to the City of Redlands ("Grantee"), a municipal corporation organized and existing pursuant to California law, that certain real property located in the County of San Bernardino, State of California, and more particularly described in Exhibit "A" attached hereto and incorporated herein by reference. IN WITNESS WHEREOF, this instrument is executed as of this day of 2006 by: [PLEASE NOTARIZE SIGNATURES] GRANTOR: GRANTEE: [ NAME CITY OF REDLANDS By: Jon Harrison, Mayor ATTEST Lorrie Poyzer, City Clerk STATE OF CALIFORNIA Ss. COUNTY OF SAN BERNARDINO) On before me, personally appeared, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Signature (Seal) EXHIBIT"A" (REMAINDER PARCEL) A PORTION OF THE WEST 1/2 OF THE NORTHWEST 1/4 OF SECTION 4, TOWNSHIP 2 SOUTH, RANGE 3 WEST, S,B.M., IN THE CITY OF REDLANDS, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, ACCORDING TO THE OFFICIAL PLAT THEREOF, DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHWEST CORNER OF SAID SECTION 4 AS SHOWN ON COUNTY SURVEYOR'S PLAT C.S. 10,068, ON FILE IN THE OFFICE OF THE COUNTY SURVEYOR OF SAID COUNTY, THENCE ALONG THE NORTH UNE OF SAID SECTION SOUTH 89044'04" EAST 1087.11 FEET, MORE OR LESS, TO A POINT DISTANT NORTH 89"44"04" WEST 220.22 FEET, ALONG SAID NORTH LINE, FROM THE WEST 1/16 CORNER OF SAID SECTION 4,AS SHOWN ON SAID COUNTY SURVEYOR'S PLAT, SAID POINT BEING THE POINT OF BEGINNING; THENCE SOUTH 18.01"10" EAST 116.96 FEET; THENCE SOUTH 44.10'35" WEST 423.75 FEET; THENCE SOUTH $501&S9" WEST 111.98 FEET, THENCE NORTH 44.49'17"WEST 106.48 FEET; THENCE NORTH 72"48'00" WEST 139.53 FEET TO A TANGENT CURVE CONCAVE NORTHEASTERLY HAVING A RADIUS OF 120.00 FEET; THENCE NORTHWESTERLY 74.97 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 35"47"50"TO A POINT OF REVERSE CURVE HAVING A RADIUS OF 385.00 FEET, A RADIAL LINE TO SAID CURVE HAVING A BEARING OF NORTH 53001"50" EAST; THELE NORTHWESTERLY 364.+48 FEET ALONG SAID CURVE CONCAVE TO THE SOUTHWEST THROUGH A CENTRAL ANGLE OF 54'1471'; THENCE SOUTH 88"47'29"WEST 48.63 FEET, MORE OR LESS, TO A POINT ON THE EAST RIGHT OF WAY OF SAN TIMOTEO CANYON ROAD, 90.00 FEET WIDE, AS SHOWN ON SAID COUNTY SURVEYOR'S PLAT; THELE SOUTH 88047'29"WEST 90.00 FEET TO THE WEST LINE OF THE NORTHWEST 1/4 OF SAID SECTION 4; THENCE ALONG SAID WEST LINE NORTH 0101Z31"WEST 157.32 FEET, MORE OR LESS, TO THE NORTHWEST CORNER OF SAID SECTION 4; THENCE ALONG THE NORTH LINE OF SAID WEST 1/2 OF THE NORTHWEST 1/4 OF SECTION 4 SOUTH 89"44'04" EAST 1087.11 FEET, MORE OR LESS,TO THE POINT OF BEGINNING. SAVING AND EXCEPTING THEREFROM ANY PORTION THEREOF EMBRACED WITHIN THE LINES OF THE PROPERTY OWNED OR OCCUPIED BY THE SOUTHERN PACIFIC RAILROAD COMPANY. ALSO EXCEPTING THEREFROM THAT PORTION CONVEYED TO THE CITY OF REDLANDS BY DEED RECORDED OCTOBER 4, 1962 IN BOOK 5779, PAGE 182,OFFICIAL RECORDS. PREPARED BY: MARK S. WHITMER, L.S. NO. 5535 Ex.:.mj Inland Appraisal EXHIBIT "B" Real Estate Consulting Appraisers 6. 7! Pei V; 35 1998 Orange Tres Lane Date: 09/21/2006 ,4a4= Redlands, CA 92374 Escrow No.: 18739-LL ik (909)748-7000 • F•x(909)748-7130 Escrow Officer: Lise Lara Property Address: Vacant Land APN #0175-011-76 ESCROW DIVISION San Bernardino,CA City of Redlands,a Municipal Corporation P,O. Box 3005 Redlands,CA 92373 Dear City of Redlands, a Municipal Corporation: In connection with the above referenced escrow that you have opened with us,we enclose the following: ESCROW INSTRUCTIONS • Please sign and return • One copy for your records PRELIMINARY CHANGE OF OWNERSHIP REPORT • Please fill out completely, sign and return VESTING AND INSURANCE INFORMATION SHEET • Please fill out completely, sign and return PRELIMINARY REPORT • Please sip and return Approval Letter • One copy for your records ESTIMATED CLOSING STATEMENT • Please sign and return • One copy for your records 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. A self-addressed envelope is enclosed for your convenience. We appreciate you letting us handle your escrow. Should you have any questions, please call either myself or my assistant, Sharma Tillen at(909)748-7000. is Lauer Realty - Escrow Division Lise Lara Escrow Supervisor ADDITIONAL ESCROW INSTRUCTIONS TO: 1998 Orange Tree Lane Escrow No.: 18739 -LL Date: 09/21/2006 Redlands, CA 92374 Escrow Officer-, Lise Lara (909)748-7000 * Fax(909)746-7130 ESCROW DIVIS40N Lois Lauer Realty-Escrow Division CONDUCTS ESCROW BUSINESS UNDER A LICENSE ISSUED TO IT BY THE CALIFORNIA DEPARTMENT OF REAL ESTATE. DISCLOSURE REGARDING OWNERSHIP: Lois Lauer Realty Escrow is a Division of Lois Lauer,Incorporated which is an"S"Corporation. Agents associated with Century 21 Lois Lauer Realty may be Stockholders of the Corporation. ESCROW SUMMARY Original Deposit Not Required Cash to Follow through Escrow As Required TOTAL CONSIDERATION $285,000.00 We, the undersigned, hand you a copy of the AGREEMENT FOR PURCHASE AND SALE ESCROW INSTRUCTIONS dated September 19, 2006 (the "Agreement='), by and between the undersigned buyer(s) and seller(s). Your duties and responsibilities are limited to those paragraphs specified in paragraph 28. On or before 10/20/2006, Escrow Holder will be handed additional funds and/or instruments required to enable Escrow Holder to comply with these instructions,which Escrow Holder is instructed to use when in a position to procure/issue an OWNERS/ALTA Policy of Title Insurance from Community Title with a liability of$285,000.00 covering the following described property located in the City of San Bernardino,the County of San Bernardino, State of California. See Exhibit"A" attached hereto and made a part hereof Seller/Transferor states that the PROPERTY ADDRESS is: Vacant Land APN# 0175-011-76 San Bernardino, CA The title policy is to show the title to the PROPERTY TO BE VESTED IN: City of Redlands, a Municipal Corporation The policy is to be FREE OF ENCUMBRANCES EXCEPT as follows: 1. Current general and special taxes for the fiscal year in which this escrow closes, and taxes for the ensuing year, if any, a lien not yet due and payable; 2. The lien of supplemental taxes, if any, assessed pursuant to the provisions of Chapter 3.5 (commencing with Section 75)of the Revenue and Taxation Code of the State of California; 3. Bonds and Assessments with no delinquent payments, if any; 4. Covenants, conditions restrictions,reservations, easements and rights of way now of record, if any; and any oil or mineral reservations of record; INSTRUCTIONS THE PARTIES TO THIS ESCROW AGREE THAT THEY WILL NOTIFY ESCROW HOLDER,By SEPARATE WRITTEN NOTICE,OF ANY CHANGES,ADDITIONS ANDIOR DELETIONS MADE TO THESE ESCROW INSTRUCTIONS;SUCH NOTICE WILL BE DELIVERED CONCURRENTLY WITH THE DELIVERY OF THESE ESCROW INSTRUCTIONS TO THE ESCROW HOLDER. Buyers Signature: Seller's Signature: City of Redlands, a Municipal Corporation The Chiesman Irrevocable Family Trust Dated 12/30/93 B by: J0 arrison,Manyo Peter A.Mika,Trustee LorriiPoyzer,Citi ��Jr Cherril Doty,Trustee - SEE ADDITIONAL INSTRUCTIONS ATTACHED HERETO AND MADE A PART HEREOF Each of the above signed states he has read the foregoing instructions and understands and agrees to them, ADDITIONAL ESCROW INSTRUCTIONS TO: 1998 Orange Tree Lane Escrow No.: 18739 -LL Date: 09/21/2006 Redlands, CA 92374 Escrow Officer: Lise Lara (809)74&7000 e Fax(909)748-7130 ESCROW DIVISION BUYERS VESTING: Escrow holder to be handed Buyer's exact vesting in writing prior to close of escrow. Buyer and Seller hereby authorize and instruct escrow holder to insert the exact vesting into Grant Deed without further authorization or instruction. PRORATIONS: In accordance with the manner specified under the "General Instructions", attached hereto, you are authorized and instructed to adjust or prorate the following to CLOSE OF ESCROW. - TAXES GENERAL INSTRUCTIONS: I. Seller is aware that interest on the existing loan(s) does not stop accruing at close of escrow, but continues until the actual day of receipt of the payoff by Lender. Seller is aware that interest will accrue through weekends or holidays, Seller is aware he/she/they are responsible for payment of all of such interest and will indemnify and hold Escrow Holder harmless in connection with the payment of such interest. 2. 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 percent of the sales price, in the case of a disposition of California real property interest by either: 1. A Seller who is an individual or 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 an amount equal to the greater of 10 percent of the amount required to be withheld or five hundred dollars($500). However, notwithstanding any other provisions included in the California statutes referenced above, no buyer will be required to withhold any amount or be subject to penalty for failure to withhold if 1. The sales price of the California real property conveyed does not exceed one hundred thousand dollars ($100,000); OR 2. The Seller executes a written certificate, under the penalty of perjury, certifying that the Seller is a corporation with a permanent place of business in California; OR 3. The Seller, who is an individual, executes a written certificate under the penalty of perjury, of any of the following: A. That the California real property being conveyed is the seller's principal residence (within the meaning of Section 121 of the Internal Revenue Code). B. That the California real property being conveyed is or will be exchanged for property of like kind (within the meaning of Section 1031 of the Internal Revenue Code), but only to the extent of the amount of gain not required to be recognized for California income tax purposes 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 non-recognition of gain 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 PARTIES TO THIS ESCROW AGREE THAT THEY WILL NOTIFY ESCROW HOLDER,BY SEPARATE WRITTEN NOTICE,OF ANY CHANGES,ADDITIONS ANDIOR DELETIONS ME TO THESE ESCROW INSTRUCTIONS;SUCH NOTICE WILL BE DELIVERED CONCURRENTLY WITH THE DELIVERY OF THESE ESCROW INSTRUCTIONS TO THE ESCROW HOLDER, Buyers Signature: Sellers Signature: City of Redlands, a Municipal Corporation The Chiesman Irrevocable Family Trust Dated 12/30/93 By: by: on Harrison,Mayor Peter A. Miko,Trustee Lorr'e Poyzer, Gity le k Cherril Doty,Trustee SEE ADDITIONAL INSTRUCTIONS ATTACHED HERETO AND MADE A PART HEREOF Each of the above signed states he has read the foregoing instructions and understands and agrees to them. 1998 Orange Tree Lane Escrow No.: 18739 -LL Date: 09/21/2006 Redlands, CA 92374 Escrow Officer: Lise Lara (909)748-7000 0 Fax(909)748-7130 ESCROW DIV1310H 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 CAN CHARGE UP TO A MAXIMUM OF $45.00 FOR PROVIDING "ASSISTANCE" IN COMPLYING WITH THE WITHHOLDING REQUIREMENTS AND COST OF SAME IS TO BE PAID BY SELLER. FOR ADDITIONAL INFORMATION CONCERNING THE WITHHOLDING PROVISIONS REFERENCED ABOVE,PLEASE CONTACT THE FRANCHISE TAX BOARD-WITHHOLDING SERVICES AND COMPLIANCE SECTION,P.O. Box 651, Sacramento,CA 95812-0651,Telephone: (916) 845-4900(not toll-free), (888)792-4900, Fax: (916)845-9512 or visit their web-site at www.ftb.ca.gov. THE PARTIES TO THIS TRANSACTION SHOULD SEEK THE PROFESSIONAL ADVICE AND COUNSEL OF AN ATTORNEY, ACCOUNTANT OR OTHER TAX SPECIALIST'S OPINION CONCERNING THE EFFECT OF THIS LAW ON THIS TRANSACTION AND SHOULD NOT ACT ON ANY STATEMENTS MADE OR OMITTED BY THE ESCROW OR CLOSING OFFICER. 3. Buyer will hand you before close of escrow a completed "Preliminary Change of Ownership" Report which you are instructed to file accompanied by the deed with the County Recorder; or, in the absence or rejection thereof, you will pay from Buyer's funds an additional $20.00 to the County Recorder, if required. It is understood that Escrow Holder does not have sufficient information to complete this form and will not be required to furnish information therefore. In the event the Preliminary Change of Ownership Statement is rejected,Buyer's understand that they will be required to file a Change of Ownership Statement that should be mailed to them with the recorded Grant Deed after the close of escrow. Buyer's are aware that by law this requirement must be met within 45 days from recordation of their Grant Deed or they may be assessed additional penalties. 4. The parties hereto understand that the transfer of title may result in a reassessment of the subject property and the levy of a Supplemental Tax and that a reference to reassessment and a lien for supplemental taxes may appear as an exception in the policy of Title Insurance to be obtained herein. You are to have no liability or responsibility for any taxes assessed after the close of escrow. Your only responsibility is to prorate taxes as provided herein. 5. Buyer acknowledges deposit of balance of funds to close escrow is to be in the form of a wire transfer or cashier's check payable to Lois Lauer Realty -Escrow Division pursuant to California Law AB512, Other forms of payment may cause extended delays in the closing of this escrow and Escrow Holder will not be responsible for accruals of interest or other charges resulting from complying with the disbursement restrictions imposed by State Law, 6. The undersigned hereby authorize and instruct Escrow Holder to charge each party to the escrow for their respective Federal Express, special mail handling/courier and/or incoming/outgoing wire transfer fees, unless specified in writing by the undersigned,Escrow Holder is authorized to select special mail/delivery or courier service to be used. 7. You are instructed to debit Sellers account and pay Sellers usual costs and charges including but not limited to Sellers portion of the escrow fee, CLTA Policy of Title Insurance, document preparation, documentary transfer tax, and recording of reconveyances(s), if any. In the event the Buyers new loan is a FHA or VA loan, charges shall be debited to the Seller in accordance with FHA and VA regulations. THE PARTIES TO THIS ESCROW AGREE THAT THEY WILL NOTIFY ESCROW HOLDER,BY SEPARATE WRITTEN NOTICE,OF ANY CHANGES,ADDITIONS ANDIOR DELETIONS MADE L_TO THESE ESCROW INSTRUCTIONS;SUCH NOTICE WILL BE DEUVERED CONCURRENTLY WITH THE DELIVERY OF THESE ESCROW INSTRUCTIONS TO THE ESCROW HOLDER. Buyees Signature: Seller's Signature: City of Redlands, a Municipal Corporation The Chiesman Irrevocable Family Trust Dated 12130193 By: by: ;J n Harrison',Mayor Peter A.Miko,Trustee Loryie Poyzer,City le k Cherril Doty,Trustee SEE ADDITIONAL INSTRUCTIONS ATTACHED HERETO AND MADE A PART HEREOF Each of the above signed states he has read the foregoing instructions and understands and agrees to them, Pape 3 k,'k'5 ADDITIONAL. ESCROW INSTRUCTIONS TO: 1988 Orange Tree Lane Escrow No.: 18739 -LL Date: 09/21/2006 Redlands, CA 92374 Escrow Officer: Lise Lara (409)748-7000 0 Fax(909)746-7130 ESCROW DIVISION 8. You are instructed to debit Buyers account and pay Buyers usual costs and charges including but not limited to Buyers portion of the escrow fee, document preparation, recording of deed(s) of trust, if any, ALTA Policy of Title Insurance, if any, and new loan charges as instructed by lender, if any. In the event the new loan is a FHA or VA loan,charges shall be debited to the Buyer in accordance with FHA and VA regulation. 9. In the event Buyer and Seller utilize "facsimile" transmitted signed documents (by Panafax, Telefax, etc.), Buyer and Seller hereby agree to accept, and instruct the Escrow Holder to rely upon, such documents as if they bore original signatures. Buyer and Seller hereby acknowledge and agree to provide Escrow Holder, within 72 hours of transmission, such documents bearing the original signature. Buyer and Seller further acknowledge and agree that documents necessary for recording with non-original (facsimile) signatures will not be accepted for recording by the County Recorder,thus delaying the close of escrow. THE FOREGOING INSTRUCTIONS AND THOSE "ADDITIONAL ESCROW CONDITIONS AND INSTRUCTIONS" ATTACHED HERETO AND MADE A PART HEREOF ARE APPROVED AND ACCEPTED IN THEIR ENTIRETY AS FULLY SET OUT IN THIS PARAGRAPH. EACH OF THE UNDERSIGNED BUYER(S) HEREBY AUTHORIZE ESCROW AGENT TO FURNISH COPIES OF CLOSING STATEMENTS TO LENDER AND/OR BROKER INVOLVED. I/We have received a copy of these instructions. PRIVACY NOTICE: In connection with your transaction, Lois Lauer Realty - Escrow Division may ask you to provide us with nonpublic personal information. Our Privacy Policy governs our use of the information you provide to us. It does not govern the manner in which we may use information we have obtained from other sources such as public records or other person or entity. We collect nonpublic personal information about you from the following sources: 1. Information we receive from you on applications and other forms; 2. Information about your transaction(s)with us, our affiliated companies or others involved in processing your transaction and 3. Information we receive from a consumer reporting agency. We request information from you in order to process your escrow transaction. We may provide all types of the nonpublic personal information listed above: (1) as necessary for us to provide the product or service you requested of us; to companies providing services related to your transaction; or(2)as permitted by law. We will use our best efforts to ensure that no parties, whom we have not authorized, have access to any of your information. We maintain physical, electronic, and procedural safeguards that comply with federal regulations to guard your nonpublic personal information. Even if you are no longer our client or customer, our Privacy Policy will continue to apply to you. THE PARTIES TO THIS ESCROW AGREE THAT THEY WILL NOTIFY ESCROW HOLDER,BY SEPARATE WRITTEN NOTICE,OF ANY CHANGES,ADDITIONS ANDIOR DELETIONS MADE TO THESE ESCROW INSTRUCTIONS;SUCH NOTICE WILL BE DELIVERED CONCURRENTLY WITH THE DELIVERY OF THESE ESCROW INSTRUCTIONS TO THE ESCROW HOUR. Buyer's Signature: Seller's Signature: City of Redlands, a Municipal Corporation The Chiesman Irrevocable Family Trust Dated 12/30/93 By: by: Jpfi Harrison,so Mayor Peter A. Miko, Trustee Lorrie Poyzer, leek Cherril Doty,Trustee *** SEE ADDITIONAL INSTRUCTIONS ATTACHED HERETO AND MADE A PART HEREOF *** Each of the above signed states he has read the foregoing instructions and understands and agrees to them. Page 4 of 5 Escrow No.: 18739-LL Date: 09/21/2006 Lois Lauer Realty - Escrow Division ADDITIONAL ESCROW CONDITIONS AND INSTRUCTIONS 1. Your duty to act as escrow holder does not commence until these instructions,signed by all parties,are received by you.Until such time either party may unilaterally cancel and upon written request delivered to you,the party may withdraw funds and documents he previously handed to you. 2. 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 time to time, Make all adjustments and prorating on the basis of a 30 day month,"Close of Escrow"is the day 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 therefore,shall not be concerned therewith and are specifically relieved of any obligations relative thereto, 3. You shall not be responsible or liable in any manner whatsoever for the sufficiency or correctness as to form,manner of execution or validity of any documents deposited in escrow,nor as to the identity,authority or rights of any person executing the same,either as to documents of record or those handled in this escrow.Your duties hereunder shall be limited to the safekeeping of such money and documents received by you as escrow holder,and for the disposition of the same in accordance with the written instructions accepted by you in this escrow.You shall not be required to take any action in connection with the collection,maturity or apparent outlaw of any obligations deposited in this escrow,unless otherwise instructed. 4. Seiler guarantees,and you shall be fully protected in assuming that as to any insurance policy handed you each policy is in force,has not been hypothecated and that all necessary premiums therefore have been paid,You will transmit for assignment any insurance policy handed you for use in this escrow, but you shall not be responsible for verifying the acceptance of the assignment and policy by the insurance company.ESCROW HOLDER WILL MAKE NO ATTEMPT TO VERIFY THE RECEIPT OF THE REQUEST FOR ASSIGNMENT BY THE ISSUING COMPANY,You are hereby placed on notice that if the insurance company should fail to receive said assignment the issuing company may deny coverage for any loss suffered by Buyer. IT IS THE OBLIGATION OF THE INSURED OR HIS REPRESENTATIVE TO VERIFY THE ACCEPTANCE OF THE ASSIGNMENT OF THE POLICY BY THE ISSUING COMPANY. S. Deliver assurances of title,and insurance policies,if any,to holder of senior encumbrance or his order,or if there be no encumbrances,then to the Buyer or his order. 6If 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.Following receipt of such written demand not to complete the escrow,you are to promptly mail a copy of said demand to the other party.Unless written objection thereto from such other patty shall be received by you within 7 business days after mailing,you are instructed to comply with such written demand and return all moneys and documents,upon payment of your cancellation fees,costs and expenses,by certified mail,If written objection is received within the time stated,you may proceed in accordance with provisions of paragraph 7 hereof T NO NOTICE, DEMAND OR CHANGE OF INSTRUCTIONS SHALL BE OF ANY EFFECT IN THIS ESCROW UNLESS GIVEN IN WRITING BY ALL PARTIES AFFECTED THEREBY,In the event conflict in demands or notices are made or served upon you or any controversy arises between the parties hereto or with third persons growing out of or relating to this escrow,you shall have the absolute right to withhold and stop all further proceedings in,and performance of,this escrow,until you receivewritten notification satisfactory to you of the settlement of the controversy by agreement of the parties thereto,or by final Judgment of a court of competent jurisdiction,All of the parties in this escrow hereby jointly and severally promise and agree to pay promptly on demand,as well as to indemnify you and to hold you harmless from and against all litigation and interpleader costs,damages,judgments, attorney's fees,expenses,obligations and liabilities of every kind which,in good faith,you may incur or suffer in connection with or arising out of this escrow,whether said litigation,interpleader,obligations,liabilities or expenses arise during the performance of this escrow,or subsequent thereto,directly or indirectly, 8. You are hereby authorized to deposit any funds or documents handed you under these escrow instructions,or cause the same to be deposited,with any duly authorized sub-escrow agent,subject to your order at or prior to close of escrow,in the event such deposit shall be necessary or convenient for thcconsummation of this escrow. 9. All parties agree that as far as your rights and liabilities are involved,this transaction is an escrow and not any other legal relation and you are an escrow holder only on the within expressed terms,and you shall have no responsibility of notifying me or any of the parties to this escrow of any sale,resale,loan,exchange,or other transaction involving any property herein described or of any profit realized by any person,firm or corporation(broker, agent and parties to this and/or any other escrow included)in connection therewith,regardless of the fact that such transactions)may be handled by you in this escrow or in mother escrow, 10. You are not to be concerned with the giving of any disclosures required by Federal or State law,specifically but not exclusively,RESPA(Real Estate Settlement Procedures Art),Regulation Z(Truth in Lending disclosures),FIRPTA(Foreign Investment in Real Property Act),or other warnings,or any warranties,express or implied.Neither are you to be concerned with the effect of zoning ordinances,land division regulations,or building restrictions which may pertain to or affect the land or improvements that are subject of this escrow, IL 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 other law regulating land division,and you as escrow holder are relieved of all responsibility and/or liability in connection therewith,and are not to be concerned with the enforcement of said laws. 12. In the event any Offer to Purchase,Deposit Receipt or any other form of Purchase Agreement is deposited in this escrow,it is understood that such document shall be effective only as between the parties signing said document You as escrow holder are not to be concerned with the terms of such document and are relieved of all responsibility and/or liability for the enforcement of such terms and your only duty being to comply with the instructions set out in this escrow.In connection with any loan transaction involving an FHA or VA loan,you are authorized to deliver a copy of any such document to FHA,VA or lender as the case may be. 13. Time is of the essence of these escrow instructions.In the event of failure to pay fees or expenses due you hereunder,on demand,I agree to pay a reasonable fee for any attorney's services which may be required to collect such fees or expenses. 14. If a party to this escrow unilaterally assigns or orders the proceeds of this escrow to be paid to other than the original parties to this escrow,such assignment or order shall be subordinated to the expenses of this escrow,liens of record on the subject property,and payments directed to be by original parties together,If the result of such assignment or order would be to leave the escrow without sufficient funds to close,then you are directed to close nevertheless,and to pay such assignments or orders only out of the net proceeds due except for such assignments or orders,and to pay them in the order in which such assignments or orders are received by you. You are to furnish a copy of these instructions,amendments thereto,closing statements and/or any other documents deposited in this escrow to the lender or lenders and/or the real estate broker or brokers involved in this transaction upon request of such lenders or brokers.In the event of an assignment or transfer of interest by operation of law,with or without the approval or consent of any or all of the parties hereto,you shall retain the right to deduct any and all escrow costs,fees and expenses provided for herein from said assigned or transferred funds,properties or rights,said assignment or transfer notwithstanding. IS. These instructions may be executed in counterparts, each of which shall be deemed an original regardless of the date or its execution and delivery. All such counterparts together shall constitute one and the same document. 16. The parties to these escrow instructions authorize you to destroy these instructions and all other instructions and records in this escrow at any time after five(5)years from the close of escrow, Buyer's Signature: Seller's Signature: City of Redlands,a Municipal Corporation The Chiesman Irrevocable Family Trust Dated 12/30/93 By. by: JA Harrison, ay9r- Peter A.Miko,Trustee A Lorrie Poy;CTI city C `1c Ghent!5oty,—Tr-lustee EXHIBIT „A» A PORTION OF THE WEST 112 OF THE NORTHWEST 114 OF SECTION 4, TOWNSHIP 2 SOUTH, RANGE 3 WEST, S.B.M., IN THE CITY OF REDLANDS, COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA,ACCORDING TO THE OFFICIAL PLAT THEREOF, DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHWEST CORNER OF SAID SECTION 4 AS SHOWN ON COUNTY SURVEYOR'S PLAT C.S. 10.068, ON FILE IN THE OFFICE OF THE COUNTY SURVEYOR OF SAID COUNTY, THENCE ALONG THE NORTH LINE OF SAID SECTION SOUTH 89° 44' 04'* EAST 1087.11 FEET, MORE OR LESS, TO A POINT DISTANT NORTH 89" 44' 04-WEST 220.22 FEET,ALONG SAID NORTH LINE, FROM THE WEST 1116 CORNER OF SAID SECTION 4, AS SHOWN ON SAID COUNTY SURVEYOR'S PLAT, SAID POINT BEING THE POINT OF BEGINNING; THENCE SOUTH 180 01' 10" EAST 116.96 FEET; THENCE SOUTH 44" 10' 35" WEST 423.75 FEET; THENCE SOUTH 65* 15' 59"WEST 111.98 FEET; THENCE NORTH 44° 49' 17" WEST 106.46 FEET; THENCE NORTH 72" 4 ' 00" WEST 139.53 FEET TO A TANGENT CURVE CONCAVE NORTHEASTERLY HAVING A RADIUS OF 120.00 FEET; THENCE NORTHWESTERLY 74.97 FEET ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 35" 47' 0" TO A POINT OF REVERSE CURVE HAVING A RADIUS OF 385.00 FEET, A RADIAL LINE TO SAID CURVE HAVING A BEARING OF NORTH 53° 01' 53" EAST; THENCE NORTHWESTERLY 364.46 FEET ALONG SAID CURVE CONCAVE TO THE SOUTHWEST THROUGH A CENTRAL ANGLE OF 54° 1421"; THENCE SOUTH 880 47'29"WEST 48.63 FEET, MORE OR LESS,TO A POINT ON THE EAST RICHT OF WAY OF SAN TIMOTEO CANYON ROAD, 90.00 FEET WIDE, AS SHOWN ON SAID COUNTY SURVEYOR'S PLAT; THENCE SOUTH 880 47' 29"WEST 90.010 FEET TO THE WEST LINE OF THE NORTHWEST 114 OF SAID SECTION 4,THENCE ALONG SAID WEST LINE NORTH 01° 12'31"WEST 157,32 FEET, MORE OR LESS,TO THE NORTHWEST CORNER OF SAID SECTION 4;THENCE ALONG THE NORTH LINE OF SAID WEST 112 OF THE NORTHWEST 114 OF SECTION 4 SOUTH 890, 44' 0,40 EAST 1087.11 FEET, MORE OR LESS,TO THE POINT OF BEGINNING, SAVING AND EXCEPTING THEREFROM ANY PORTION THEREOF EMBRACED WITHIN THE LINES OF THE PROPERTY OWNED OR OCCUPIED BY THE SOUTHERN PACIFIC RAILROAD COMPANY. ALSO EXCEPTING THEREFROM THAT PORTION CONVEYED TO THE CITY OF REDLANDS BY DEED RECORDED OCTOBER 4, 19+62 IN BOOK 5779,PAGE 182,OFFICIAL RECORDS. THIS LEGAL DESCRIPTION IS MADE PURSUANT TO CERTIFICATE OF COMPLIANCE L.L.A. NO. 448 RECORDED JANUARY 17,2003 AS INSTRUMENT NO.2003-0033707 OF OFFICIAL RECORDS. 1998 Orange Tree Lane Date: 09/21/2006 Redlands, CA 92374 Escrow No.: 18739-LL Escrow Officer: Lise Lara (W9)748-1000 * Fax(909)748-7130 Property Address: Vacant Land APN #0175-011-76 ESCROW DIV1310H San Bernardino,CA City of Redlands, a Municipal Corporation P.O. Box 3005 Redlands,CA 92373 Dear City of Redlands,a Municipal Corporation: Enclosed please find a copy of the Preliminary Title Report as issued by: Community Title, under their order no.: 704554-18 for your records. Please acknowledge receipt of a copy of the items mentioned by dating and signing the enclosed copy of this letter. Thank you, Lise Lara Escrow Supervisor The undersigned hereby acknowledge that I/we have read the Preliminary Report dated September 18, 2006, covering the property described in your above numbered escrow, and approve the Policy of Title Insurance to be issued to me as required by my instructions to include as encumbrances therein Item Numbers A, B, C, and I through 12 and 14, 15, 17 and Legal Description of said report, in addition, to those specific items described in my escrow instructions or created by me. I/WE HEREBY ACKNOWLEDGE RECEIPT AND APPROVE OF SAID PRELIMINARY REPORT: Date: Y-- z� Buyer's Signature(s) City of Redlands, a Municipal Corporation By /JonHarri&n—,Mayor Lorfie Poyzer,qts)erk • 1988 Orange Tree Lane Date of Estimate: 09/21/2006 Redlands, CA 92374 (909)746-7000 * Fax(909)748-71 30 ESCROW DIVISION Escrow No. 18739-LL BUYER(s) Estimated Settlement Date: October 20,2006 ESTIMATED L.• IN City of Redlands,a Municipal Corporation P.O. Box 3005 Redlands,CA 92373 L PROPERTY ADDRESS: Vacant Land APN#0175-011-76,San Bernardino,CA DEBITS CREDITS Total Consideration 285,000.00 Taxes 10/20/06 to 12/31/06 at$299.91 118.30 Escrow Fee(Buyer& Seller Side-Per Contract)to LOIS LAUER REALTY-Escrow Division 1,750A0 Owners Title Policy Fee(Per Contract)-ESTIMATED to Community Title 970.00 Record Grant Deed-ESTIMATED 25.00 Cash Due From Buyer 287,863.30 ----------—--- TOTALS 287,863.30 287,863,30 BUYER'S SIGNATURE BELOW AUTHORIZES ESCOW HOLDER 0 ALLOCATE CLOSING CHARGES TO THE BUYER AS INDICAT D ABOVE. SAD CHARGES iM E HAVE BEEN ALLOCATED AS PER SECTION 4.3 0 1 THE AGREENT FOR PURCHASE AND SALE AND ESCROW INSTRUCTIONS DATED SE "TEMBER 19, 2006. Buyer's Signature City of Redlands,a Municipal Corporation By: "Jbn Harris6fi,'-'M—a-yor LA ie Poyzer ',"Ierk IMPORTANT: (Please Read) This is an estimated accounting of your escrow. Save the final statement for income-tax-reporting information. Any documents required to be recorded through this escrow which are deliverable to you,will be sent,usually within 45 days, direct from the County Recorder to you. The tax year in California is from July through June. The first installment is delinquent after Dec. I e;the second installment is delinquent after April Ie of each year. Date: 09/21/2006 Escrow No.: 18739-LL 1888 Orange Tree Lane Escrow Officer: Lise Lara Redlands, CA 92374 Property Address: Vacant Land APN # 0175-011- ESCROW DIVISION (909)748-7000 • Fax(909)748-7130 76 San Bernardino,CA BUYER'S ESCROW INFORMATION SHEET PLEASE FILL OUT THIS FORM COMPLETELY AND RETURN TO OUR OFFICE AS SOON AS POSSIBLE AS IT WILL ASSIST US IN THE ADMINISTRATION OF YOUR TRANSACTION. 1. Buyer(s)Vesting to be placed on Grant Deed. Please Print Your Name(s)Exactly As You Wish lt(Them) To Appear Of Record City of Redlands, a Municipal Corporation Mark the applicable item(s)below: ❑ A TRUST as follows:(A copy of the trust will be required) (Exact names of Trustees and Name and Date of the Trust) ❑ A Partnership or Corporation as follows: (We will need complete documentation in reference to same) Rk Other: A Municipal Corporation If married,a Quitclaim Deed,Statement of Information and appropriate instructions will need to be submitted prior to close of escrow. 2. Social Security Number/EIN Number: FedTax ID: 95-6000766; StateID: 800-9833-8 Please place any additional information that you feel we may require on the reverse side of this form. Buyer's Signature City of Redlands, a Municipal Corporation By. on Harr son, MayorOW Plg� �Ap �Qp& Lorry Poyzer, Ci jr PRELIMINARY CHANGE OF OWNERSHIP REPORT THIS REPORT IS NOT A PUBLIC DOCUMENT (To be completed by transferee(buyer)prior to transfer of the subject property in accordance with Section 480.3 of the Revenue and Taxation Code.) �SELLER/TRANSFEROR: FOR ASSESSOR'S USE ONLY BUYER/TRANSFEREE: Cluster ASSESSOR'S IDENTIFICATION NUMBER(S): n 1 79-ni I-7A OC1 OC2 Map Book Page Parcel DT INT PROPERTY ADDRESS OR LOCATION: - 1-7 RC SP$ No. Street DTT$ #PeI can Raarrlirtrt r A city State zip code A Preliminary Change in Ownership Report must be filed with each conveyance in the MAiL TAX INFORMATION TO: County Recorder's office for the county NAME: City 9f Redlands. Municioal Coro anon where the property is located;this particular form ADDRESS: 35 Cajon St. PO Bax.3005—mailiny be used in all 58 counties of Redlands CA form California. Street No. city State Zip Code 9 3 713 The property which you acquired may be subject to a supplemental assessment in an amount to be determined by the San Bernardino County Assessor. For further information on your supplemental roll obligation,please call the San Bernardino County Assessor at(909)387-6730 PART 1: TRANSFER INFORMATION Please answer all questions. YES NO ❑ [z A. is this transfer solely between husband and wife?(Addition of a spouse,death of a spouse,divorce settlement,etc.) ❑ Q B. Is this transaction only a correction of the name(s)of the person(s)holding title to the property?(For example,a name change upon marriage) ❑ [ C. Is this document recorded to create,terminate,or reconvey a iender's interest in the property? [ D, is this transaction recorded only to create,terminate,or reconvey a security interest(e,g.,consigner)? ❑ E. Is this document recorded to substitute a trustee under a deed of trust,mortgage,or other similar document? ❑ F. Did this transfer result in the creation of a joint tenancy in which the seller(transferor)remains as one of the joint tenants? ❑ R G. Does this transfer return property to the person who created the joint tenancy(original transferor)? H. Is this transfer of property: ❑ Elif 1. to a trust for the benefit of the grantor,or grantor's spouse? ❑ [? 2. to a trust revocable by the transferor? ❑ El , 3, to a trust from which the property reverts to the grantor within 12 years? [ 1. If this property is subject to a lease,is the remaining lease term 35 years or more including written options? ® ❑ J. Is this a transfer from parents to children or from children to parents? ❑ ©f K. Is this transaction to replace a principal residence located in San Bernardino County by a person 55 years of age or older? If you checked yes to J or K,an applicable claim form must be filed with the County Assessor. Please provide any other information that would help the Assessor to understand the nature of the transfer. ** PLEASE SIGN ON THE FOLLOWING PAGE** IF YOU HAVE ANSWERED"YES"TO ANY OF THE ABOVE QUESTIONS EXCEPT K,PLEASE SIGN AND DATE, OTHERWISE COMPLETE BALANCE OF THE FORM. PART If: OTHER TRANSFER INFORMATION f A. Date of transfer if other than recording date - . f j} B. Type of transfer. Please check appropriate box, Purchase ❑ Foreclosure ❑Gift ❑Trade or Exchange ❑ Contract of Sale--Date of Contract ❑ Inheritance--Date of Death ❑ Other:Please explain: ❑ Creation of a lease; ❑Assignment of a lease; ❑Termination of a lease Date lease began Original term in years(including written options) Remaining term in years(including written options) C. Was only a partial interest in the property transferred? ❑Yes P151o, If yes,indicate the percentage transferred %, Page 1 of 2 PART III: PURCHASE PRICE&TERMS OF SALE A. CASH DOWN PAYMENT OR Value of Trade or Exchange(excluding closing cost) Amount$ B. FIRST DEED OF TRUST %interest for years.Pymts./Mo.=$ (Prin.&Int,only) Amount$ [] FHA M Fixed Rate D New Loan El Conventional 0 Variable Rate n Assumed Existing Loan Balance 0 VA 171 All Inclusive D.T. ($ Wrapped) El Bank or Savings&Loan El Cal-Vet C] Loan Carried by Seller n Finance Company Balloon Payment n Yes [I No Due Date Amount$ C. SECOND DEED OF TRUST @ %interest for_years,Pymts./Mo.=$ (Prin.&Int,only) Amount$ El Bank or Savings&Loan [I Fixed Rate [I New Loan 0 Loan Carried by Seller F1 Variable Rate F1 Assumed Existing Loan Balance Balloon Payment 0 Yes n No Due Date Amount$ D. OTHER FINANCING: Is other financing involved not covered in(b)or(c)above? 171 Yes n No Amount$ Type i %interest for years.Pvmts./Mo,=$ (Prin.&Int.only) Amount$ Bank or Savings&Loan 171 Fixed Rate C3 New Loan ❑ Loan Carried by Seller El Variable Rate [J Assumed Existing Loan Balance Balloon Payment 0 Yes El No Due Date Amount$ E. IMPROVEMENT BOND Fl Yes El No Outstanding Balance: Amount$ F TOTAL PURCHASE PRICE(or acquisition price,if traded or exchanged,include real estate commission if paid.) G, WAS A BROKER INVOLVED IN THIS SALE? El Yes n No Total items A through E Please explain any special terms of financing and any other information that would help the Assessor understand the purchase price and terms of sale. PART IV: PROPERTY INFORMATION X IS PERSONAL PROPERTY INCLUDED IN THE PURCHASE PRICE? (other than a mobilehome subject to local property tax)? F1 Yes eNo If yes,enter the value of the personal property included in the purchase price$ (Attach itemized list of personal property) B. IS THE PROPERTY INTENDED AS YOUR PRINCIPAL RESIDENCE? n Yes 0 No C. TYPE OF PROPERTY TRANSFERRED: n Single-Family residence n Agricultural F1 Timeshare n Multiple-Family residence(no.of units: n Co-op/Own-your-own n Mobilehome Commercial/industrial El Condominium n Unimproved Lot ❑ Other(Description: D. DOES THE PROPERTY PRODUCE INCOME? 0 Yes No E. IF THE ANSWER TO QUESTION D IS YES, IS THE INCOME FROM: F_1 Lease/Rent n Contract n Mineral rights F1 Other—explain: F WHAT WAS THE CONDITION OF THE PROPERTY AT THE TIME OF SALE? n Good 11 Average 0 Fair O/Poor Enter here,or on an attached sheet,any other information that would assist the Assessor in determining value of the property such as the physical condition of the property,restrictions,etc. I rtify that the foregoing is true,correct and complete to the best of my knowledge and belief, Signed: Date: September 25 . 2006 Wew Owrr #Legal RepresentativelCorporate Officer) Please PrinkName of New owner/Legal Representative/Corporate Officer Jon Harrison, mayor ATT� Phone No.where you are available from 8:00 a.m.-5:00 p.m. L9 0 9 _) 7 9 8-7 5 3 3 L o r r i"e, P/(0' y z e r (NOTE. The Assessor may contact you for further information) City Clerk If a document evidencing a change of ownership is presented to the recorder for recordation without the concurrent filing of a PRELIMINARY CHANGE OF OWNERSHIP REPORT,the recorder may charge an additional recording fee of twenty dollar's($20). The additional fee shall not be charged if the document is accompanied by an affidavit that the transferee is not a resident of California, AFFIDAVIT OF NONRESIDENT TRANSFEREE The Transferee(buyer)named above is a resident of and not a resident of the State of California. State Signed: Date: (Now OwnerlLegal Representativa/Corporate Officer) Page 2 of 2 ----------- ------