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HomeMy WebLinkAboutSDP 03-13; Keystone Carlsbad 28 LLC; 2006-0152195; EasementDOC# 2006-0152195 RECORDING REQUESTED BY: Carlsbad City Clerk's Office 1200 Carlsbad Village Drive Carlsbad, California 92008 AND WHEN RECORDED MAIL TO: Carlsbad City Clerk's Office 1200 Carlsbad Village Drive Carlsbad, California 92008 MAR 03, 2006 4:38 PM OFFICIAL RECORDS SAN DiEGG COUNTY RECORDER'S OFFICE GREGORY j. SMITH, COUNTY RECORDER FEES. 0.00 OC: NA PAGES: 39 The undersigned grantor(s) declarers): Documentary transfer tax is $0.00 w/\ ( ) computed on full value of property conveyed, or ( ) computed on full value les value of liens and encumbrances remaining at time of sale. ( ) Unincorporated area: (x) City of Carlsbad and THIS SPACE ABOVE FOR RECORDER'S USE Assessor's Parcel No. 215-083-09 Project No. and Name: SDP 03-13; Morning Ridge CONSERVATION EASEMENT THIS CONSERVATION EASEMENT is made this 2006, by KEYSTONE CARLSBAD 28 LLC, a California limited liability cdfnpany ("Grantor"), in favor of THE CITY OF CARLSBAD, a California municipal corporation ("Grantee"). RECITALS A. Grantor is the sole owner in fee simple of real property in the City of Carlsbad, County of San Diego, State of California legally described on Exhibit "A" and depicted on Exhibit "B" attached hereto and incorporated by this reference (the "Property"), which consists of approximately 16.946 acres; B Grantee has adopted a Habitat Management Plan for the conservation, protection, and management of fish, wildlife, native plants and the habitat necessary for biologically sustainable populations of certain species thereof. C. hi accordance with the Habitat Management Plan, the Property is and will remain in a Natural Condition as defined herein and is intended to be conserved, managed, and preserved in its natural, scenic, open condition to maintain its ecological, biological, historical, visual and educational values (collectively, "Conservation Values") of great importance to the Grantee and the People of the State of California; D. The Property contains natural habitat identified in the City of Carlsbad's Habitat Management Plan; 2/8/06 -1-037225-0117 273443 7 E. Grantor intends to transfer fee title to the Property to MORNING RIDGE HOMEOWNERS ASSOCIATION, a California nonprofit mutual benefit corporation ("Homeowners Association''), subject to an irrevocable offer of dedication ("IOD") of fee title to the City of Carlsbad. Upon transfer to the Homeowners Association and for so long as the Homeowners Association owns the Property, the Homeowners Association will take on all of the obligations and duties of the Grantor related to the conservation, protection, monitoring and management of the Conservation Values of the Property, including the fiduciary duty to manage endowment funds that have been set aside to preserve the Conservation Values of the Property under this conservation easement; F. The City of Carlsbad may, in the future, accept the IOD and thereafter transfer fee title to the Property to a designated conservator ("Conservation Entity"). Upon such acceptance by the City or Conservation Entity, the City or the Conservation Entity (as applicable) will take on all of the obligations and duties of the Grantor related to the conservation, protection, monitoring and management of the Conservation Values of the Property, including the fiduciary duty to manage endowment funds that have been set aside to preserve the Conservation Values of the Property under this conservation easement; G. Grantee is authorized to hold conservation easements pursuant to Civil Code Section 815.3. Specifically, Grantee is a governmental entity identified in Civil Code Section 815.3(b) and otherwise authorized to acquire and hold title to real property; H. The California Department of Fish and Game ("CDFG") has jurisdiction, pursuant to the California Fish and Game Code, Section 1802, over the conservation, protection, and management of fish, wildlife, native plants and the habitat necessary for biologically sustainable populations of those species and also has permitting jurisdiction pursuant to Fish and Game Code Section 1600 et seq. with respect to any activity which may substantially divert or obstruct the natural flow of, or substantially change or use any material from the bed, channel, or bank of, any river, stream, or lake, or deposit or dispose of debris, waste, or other material containing crumbled, flaked, or ground pavement where it may pass into any river, stream, or lake; I. The United States Fish and Wildlife Service ("LJSFWS") has jurisdiction over the conservation, protection, restoration, enhancement and management of fish, wildlife and native plants and the habitats on which they depend under the Endangered Species Act, 16 U.S.C. Section 1531 et. seq., the Fish and Wildlife Coordination Act, 16 U.S.C.. Sections 661-666c and other applicable federal laws; L The California Coastal Commission ("CCC") has jurisdiction over the Property pursuant to the California Coastal Act of 1976, California Public Resources Code Section 30000 et seq. K. Grantor hereby informs Grantee and third party beneficiaries that Grantor intends to convey the Property to the Homeowners Association and that the Homeowners Association will assume Grantor's duties hereunder, and 2/8/06 -2- 037225-01 !7 273443 7 1,. Grantee agrees by accepting this grant to honor the intentions of Grantor stated herein to preserve and protect in perpetuity the conservation values of the Property in accordance with the terms of this Conservation Easement. COVENANTS. TERMS. CONDITIONS AND RESTRICTIONS In consideration of the above recitals and the mutual covenants, terms, conditions, and restrictions contained herein, and pursuant to California law, including Civil Code Section 815, et seq., Grantor hereby voluntarily grants and conveys to Grantee a conservation easement in perpetuity over the Property of the nature and character and to the extent hereinafter set forth ("Conservation Easement"). This Conservation Easement shall run with the land and be binding on Grantor's heirs, successors, administrators, assigns, lessees, and other occupiers or users of the Property or any portion of it. 1. Purpose. (a) The purpose of this Conservation Easement is to ensure that the Property will be preserved in a natural condition in perpetuity and to prevent, subject to the rights retained by the Grantor hereunder, any use of the Property that will materially impair or interfere with the Conservation Values of the Property (the "Purpose"). Grantor intends that this Conservation Easement will confine the use of the Property to activities involving the preservation and enhancement of native species and their habitat in a manner consistent with the habitat conservation purposes of this Conservation Easement. (b) The term "Natural Condition," as referenced in the preceding paragraph and other portions of this Conservation Easement, shall mean the condition of the Property, as it exists at the time this Conservation Easement is executed, as well as future enhancements or changes to the Property that occur directly as a result of the following activities: (1) In-perpetuity long-term maintenance obligations ("Long-Term Maintenance"), that occur on the Property as described in Section 6(i) herein, or (2) Activities described in Section 4 herein. (c) Grantor certifies to the best of its knowledge that there are no structures or improvements existing on the Property at the time this grant is executed. Grantor further certifies to the best of its knowledge the only easements existing on the Property at the time this grant is executed are identified in Exhibit "C". Grantor and Grantee acknowledge that the Property is or will be subject to the IOD. The current Natural Condition is evidenced in part by the depiction of the Property attached on Exhibit "D", showing all relevant and plottable property lines, easements, dedications, improvements, boundaries and major, distinct natural features. Grantor has delivered further evidence of the Property's Natural Condition to Grantee consisting of (I) an aerial photograph of the Property at an appropriate scale taken as close in time as possible to the date this Conservation Easement is executed; (2) an overlay of the Property boundaries on such aerial photograph; (3) on-site photographs showing all man-made improvements or structures (if any), and the major, distinct natural features of the Property; (4) all biological reports, including a baseline biological conditions and assessment report with GIS mapping; (5) the certified 2/8/06 -3- 037225-0117 273443 7 Mitigated Negative Declaration approved by the Carlsbad City of Council on May 11, 1999 by Resolution No. 99-161; and (5) Final Map No. 14636 recorded on July 23, 2003, as Document No. 2003-0877757 in the Office of the County Recorder of San Diego County, California. (d) If a controversy arises with respect to the Natural Condition of the Property, Grantor, Grantee, USFWS, CDFG, and CCC as third party beneficiaries, or their designees or agents, shall not be foreclosed from utilizing any and all other relevant documents, surveys, photographs or other evidence or information to assist in the resolution of the controversy. 2. Prohibited Uses. Any activity on or use of the Property inconsistent with the Purpose of this Conservation Easement and not reserved as a right of Grantor is prohibited. Without limiting the generality of the foregoing, the following uses by Grantor, Grantee, and their respective guests, agents, assigns, employees, representatives, successors, and third parties are expressly prohibited on the Property except as otherwise provided herein or unless specifically provided for in the City of Carlsbad's Habitat Management Plan and its implementing documents, and any easements and reservations of rights recorded in the chain of title to the Property at the time this Conservation Easement is recorded: (a) Supplemental watering except for habitat enhancement activities described in Section 4: (b) Use of herbicides, pesticides, biocides, fertilizers, or other agricultural chemicals or weed abatement activities, except activities necessary to control or remove invasive or exotic species; (c) Incompatible fire protection activities; (d) Use of off-road vehicles and use of any other motorized vehicles except in the execution of management duties or as permitted by any easement identified on Exhibit "C"; (e) Livestock grazing or other agricultural activity of any kind; (f) Recreational activities including, but not limited to, horseback riding, biking, hunting or fishing; (g) Residential, commercial or industrial uses; (h) Any legal or de facto division, subdivision or portioning of the Property, except transfers in accordance with Section 12 below; (i) Construction, reconstruction or placement of any building or other improvement, billboard, or sign except those signs permitted in Section 6 herein; (j) Depositing, dumping, or accumulating soil, trash, ashes, refuse, waste, bio-solids or any other material; 2/8/06 -4- 037225-0117 273443 7 (k) Planting, introduction or dispersal of non-native or exotic plant or animal species; (1) Filling, dumping, excavating, draining, dredging, mining, drilling, removing or exploring for or extraction of minerals, loam, gravel, soil, rock, sand or other material on or below the surface of the Property; (m) Altering the general topography of the Property, including but not limited to building of roads and flood control work; (n) Removing, destroying, or cutting of native trees, shrubs or other native vegetation, except for: (1) fire breaks as required by fire safety officials as set forth in Section 4, (2) maintenance of existing foot trails or roads, (3) prevention or treatment of disease, (4) control of invasive species which threaten the integrity of the habitat, or (5) activities described in Section 4 and Section 6: and (o) Manipulating, impounding or altering any natural watercourse, body of water or water circulation on the Property, and activities or uses detrimental to water quality, including but not limited to degradation or pollution of any surface or sub-surface waters. 3. Grantee's Rights. To accomplish the Purpose of this Conservation Easement, Grantor hereby grants and conveys the following rights to Grantee, its successors and assigns. These rights are also granted to the USFWS, CDFG and CCC as third party beneficiaries of this Conservation Easement. (a) To preserve and protect the Conservation Values of the Property; (b) To enter upon the Property at reasonable times: (i) in order to monitor the condition of the Property and to enforce the terms of this Conservation Easement, (ii) to conduct scientific research and for interpretive purposes (which entry may be made by Grantee or its designees), provided, however, that Grantee's exercise of such rights shall not unreasonably interfere with the Grantor's exercise of the rights retained by Grantor hereunder; (c) To prevent any activity on or use of the Property that is inconsistent with the Purpose of this Conservation Easement and to require the restoration of such areas or features of the Property that may be damaged by any act, failure to act, or any use that is inconsistent with the Purpose of this Conservation Easement; (d) All mineral, air, and water rights necessary to protect and to sustain the biological resources of the Property, provided that any exercise or sale of such rights by Grantee shall not result in conflict with such Conservation Values; (e) Except as expressly provided for future public easements pursuant to Section 4(a) and Section 12(c) or reserved in Section 4, the right to all future development rights allocated, implied or inherent in the Property are hereby terminated and extinguished. 2/8/06 -5- 037225-0117 273443 7 (f) The right to enforce by means, including, without limitation, injunctive relief, the terms and conditions of this Conservation'Easement. 4. Reserved Rights. Grantor reserves to itself, its successors and assigns, all rights accruing from its ownership of the Property, including the following rights, but only to the extent that such uses are consistent with the Purpose of this Conservation Easement: (a) The right to grant easements for a public purpose and necessary for the public health, safety and welfare, so long as such easements are consistent with the Purpose of this Conservation Easement and are in accordance with Section 12(c): (b) The right of the Homeowners Association to use the property for access to perform slope maintenance and brush management on land other than the Conservation Easement, so long as the use is consistent with the Purpose of this Conservation Easement. (c) The right to perform restoration and management activities, which are necessary to maintain the Property as open space and preserve and protect the Conservation Values thereon; (d) The right to plant and maintain native trees, shrubs and other native landscaping elements, including, without limitation, the installation and maintenance of underground pipe systems, sprinklers, and appurtenances necessary to maintain the landscaping placed thereon to the extent such landscaping elements are required pursuant to the permits, entitlements and approvals issued for the Project, and are consistent with the Purpose of this Conservation Easement; and (e) The right to install and maintain fences on the Property to the extent such installation and maintenance of fences is consistent with the Purpose of this Conservation Easement. (f) Reasonable access through the Property to adjacent land to perform obligations or other activities permitted by this Conservation Easement. (g) Notwithstanding anything set forth herein to the contrary, nothing in this Conservation Easement is intended nor shall be applied to in any way limit Grantor or any of Grantor's successors and assigns from (1) constructing, placing, installing, and/or erecting any improvements upon any real property not constituting the Property, (2) installing and/or maintaining subsurface infrastructure improvements, utility lines, landscaping (including irrigation and runoff), landscape mitigation, and/or similar non-structural improvements within the Property, and/or (3) developing adjoining property for any purposes, except as limited by any local, state or federal permit requirements for such development and provided that for all of the above clauses (1), (2) and (3) neither such activity nor any effect resulting from such activity amounts to a use of the Property, or has an impact upon the Property that is prohibited by Section 2 above. 5. Grantee's Duties. To accomplish the Purpose of this Conservation Easement as described in Section 1. Grantee shall: 2/8/06 -6- 037225-0117 273443 7 (a) Not reduce the Conservation Values of the Property by performing any activity contrary to the Purpose of this Conservation Easement, and (b) Perform routine compliance inspections of the Property to the extent it determines that staff and funding are available and make reports available to , USFWS, CDFG and/or CCC upon request. 6. Grantor's Duties. To accomplish the Purpose of this Conservation Easement as described in Section 1. Grantor, its successors or assigns shall: (a) Preserve and retain the Property for its Conservation Values; and (b) Undertake all reasonable actions to prevent the unlawful entry and trespass by persons whose activities may degrade or harm the Conservation Values of the Property. In addition, Grantor shall undertake all necessary actions to perfect Grantee's rights under Section 3 of this Conservation Easement, including but not limited to Grantee's water rights; and (c) Comply with the terms of this Conservation Easement and cooperate with Grantee in the protection of the Conservation Values; and (d) Repair and restore damage to the Conservation Easement directly caused by Grantor, Grantor's representatives, employees, agents, invitees and third parties; and (e) Set aside, hold, invest and disburse adequate endowment funds in trust solely for the purposes of protecting Grantee's rights and preserving the Conservation Values of the Property under this Conservation Easement in perpetuity. Grantee shall have the right to review and approve the terms of the endowment agreement, and shall be a third party beneficiary of that agreement with the right to review and approve any amendments; and (f) Have a fiduciary duty to ensure that the endowment funds held in trust for the Property are properly managed. The following principles of fiduciary duty shall apply: (1) There shall be no commingling of the endowment funds with other funds. (2) Grantor shall have a duty of loyalty and shall not use the endowment funds for it's own personal benefit. (3) Grantor shall act as a prudent investor of the endowment funds. Investment by the Grantor or the HOA in government-backed securities or insured certificate(s) of deposit shall be considered a prudent investment. (4) Grantor shall not delegate the responsibility for managing the funds to a third party, but may delegate authority to invest the funds with Grantor's oversight. Grantor shall act with prudence when delegating authority and in the selection of agents. 2/8/06 -7- 037225-0117 273443 7 (5) No portion of the principle amount of the endowment fund shall be expended without prior authorization from Grantee. (6) Grantor shall have an annual audit of the endowment performed by a licensed CPA. Grantor shall submit the auditor's written report to Grantee upon completion. (g) Obtain any applicable governmental permits and approvals for any activity or use permitted by this Conservation Easement, and undertake any activity or use in accordance with all applicable federal, state, local and administrative agency statutes, ordinances, rules, regulations, orders or requirements; and (h) Perform or cause to be performed the following initial work on the Property: (1) Install signs and other notification features saying "Natural Area Open Space," "Protected Natural Area," or similar descriptions that inform persons of the nature and restrictions on the Property; and (2) Install approximately 550 linear feet of Five-foot-high black vinyl coated chain link fencing along the boundary of the Property that is parallel to Poinsettia Lane; (3) Remove any accumulated trash or inorganic debris; (4) Remove those non-native plants identified for removal by a qualified biological monitor; and (5) Survey and stake the Property boundaries. (i) Perform Long-Term Maintenance of the Property. Grantor, its successors and assigns, shall retain a qualified biological monitor to oversee/monitor maintenance activities performed under subsection (2) below. Grantor, its successors and assigns shall prepare a summary of monitoring and maintenance documenting activities performed under this Section 6(i), and shall make reports available to the Grantee on an annual basis, and to USFWS, CDFG, and CCC upon request. When activities are performed pursuant to subsection (2) below, the monitoring and maintenance report shall be signed by Grantor, its successors or assigns and the biological monitor. Said report shall document the monitor's name and affiliation, dates monitor was present on-site, activities observed and their location, monitor's observations regarding the adequacy of maintenance performance by the Grantor, its successors or assigns, or its contractor, corrections recommended and implemented by the Grantor, its successors or assigns. Such Long- Term Maintenance shall consist of the following activities: (1) Annual removal of trash or inorganic debris; (2) Repair, remediation and restoration of damage to the Natural Condition and Conservation Values of the Property, including damage from man-made causes, non-natural parasites and non-native or exotic species; 2/8/06 -8- 037225-0117 273443 7 (3) Vegetation mapping and surveys of sensitive plants, birds, reptiles, amphibians and insects at such intervals as are customary for conserved habitat lands similar to the Property; and (4) Annual maintenance of signage set forth in this Section 6(h). 7. Enforcement. (a) Third Party Beneficiaries. USFWS, CDFG and CCC, as third party beneficiaries of this Conservation Easement, shall have the same rights, remedies and limitations as Grantee under this Section 7. The third party beneficiary rights under this Section are in addition to, and do not limit, rights conferred to any third party beneficiary under any other laws or regulations. Grantor, Grantee and any third party beneficiary, when implementing any remedies under this easement, shall provide timely written notice to each other of any actions taken under this Section, including, but not limited to: copies of all notices of violation and related correspondence. (b) Notice of Violation. If Grantee, its successors or assigns determines that Grantor is in violation of the terms of this Conservation Easement or that a violation is threatened, Grantee may demand the cure of such violation. In such a case, Grantee shall issue a written notice to Grantor (hereinafter "notice of violation") informing the Grantor, of the actual or threatened violations and demanding cure of such violations. Grantee and third party beneficiaries shall make a good faith effort to notify each other prior to issuing a notice of violation. (c) Time to Cure. Grantor shall cure the noticed violations within fifteen (15) days of receipt of said written notice from Grantee or third party beneficiary. If said cure reasonably requires more than fifteen (15) days, Grantor shall, within the fifteen (15) day period submit to Grantee for review and approval a plan and time schedule to diligently complete a cure. Grantor shall complete such cure in accordance with the approved plan. If Grantor disputes the notice of violation, it shall issue a written notice of such dispute to Grantee and/or third party beneficiary within fifteen (15) days of receipt of written notice of violation. (d) Failure to Cure. If Grantor fails to cure the noticed violations within the time period described in Section 7(c), above, or Section 7(e)(2X below, Grantee may bring an action at law or in equity in a court of competent jurisdiction to enforce compliance by Grantor with the terms of this Conservation Easement. In such action, the Grantee may: (1) Recover any damages to which Grantee may be entitled for violation by Grantor, of the terms of this Conservation Easement, subject to the limitations in Section 7(h) and Section 7(i) below. Grantee shall first apply any damages recovered to the cost of undertaking any corrective action on the Property. (2) Enjoin the violation, ex parte if necessary, by temporary or permanent injunction without the necessity of proving either actual damages or the inadequacy of otherwise available legal remedies. 2/8/06 -9- 037225-OU7 273443 7 (3) Obtain other equitable relief, including, but not limited to, the restoration of the Property to the condition in which it existed prior to any such violation or injury. (e) Notice of Dispute. If Grantor provides Grantee with a notice of dispute, as provided herein, Grantee shall meet and confer with Grantor at a mutually agreeable place and time, not to exceed thirty (30) days from the date that Grantee receives the notice of dispute. Grantee shall consider all relevant information concerning the disputed violation provided by Grantor and shall determine whether a violation has in fact occurred and, if so, determine whether the notice of violation and demand for cure issued by Grantee is appropriate in light of the violation. (1) Grantee shall use the following principles in making a determination: a. Management activities shall be chosen for their long-term benefits to the Property's Conservation Values rather than for short-term benefits; b. Management activities that benefit habitat protection shall be chosen in favor of management activities designed to benefit individual species, except where State or federally listed species are at issue; c. Habitat maintenance is of primary importance in protecting the long-term Conservation Values of the Property; d. Management activities shall be chosen according to the following order of preference: i. Preventative actions shall be taken to avoid additional impact; ii. Natural restoration shall be used if appropriate, based on the magnitude of the impact, the impacts on listed or sensitive species, and the estimated time for recovery to occur; iii. Active restoration shall be required only where there are potential severe, long-term impacts to the Property's Conservation Values, or where highly sensitive species are impacted. e. If, and for so long as, Grantor is a non-profit entity organized for conservation purposes, Grantee shall consider the cost of management activities and the resources available to Grantor or its successors. (2) If, after reviewing Grantor's notice of dispute, conferring with Grantor and considering all relevant information related to the violation, Grantee determines that a violation has occurred, Grantee shall give Grantor notice of such determination in writing. Grantor shall cure the noticed violations within fifteen (15) days of receipt of said written notice from Grantee. If said cure reasonably requires more than 2/8/06 -10- 037225-0117 273443 7 fifteen (15) days, Grantor shall, within the fifteen (15) day period submit to Grantee for review and approval a plan and time schedule to diligently complete a cure. Grantor shall complete such cure in accordance with the approved plan. (f) Conflicting Notices of Violation (1) If Grantor receives a notice of violation from Grantee and/or any third party beneficiary that is in material conflict with one or more prior written notices of violation that have not yet been cured by Grantor such that the conflict makes it impossible for Grantor to carry out a cure consistent with all prior active notices of violation, Grantor shall give written notice to all agencies issuing conflicting notices of violation within fifteen (15) days of the receipt of each such conflicting notice of violation. A valid notice of conflict shall describe the conflict with specificity, including a description of how the conflict makes compliance with all active notices of violation impossible. The failure of Grantor to issue a valid notice of conflict within 15 days of receipt of a conflicting notice of violation shall result in a waiver of Grantor's ability to claim a conflict. (2) Upon issuing a valid notice of conflict to the appropriate entity, as described above, Grantor shall not be required to carry out the cure described in the conflicting notices of violation until such time as Grantee or third party beneficiary responsible for said conflicting notices of violation issue a revised notice of violation making all active notices of violation consistent. Upon receipt of a revised, consistent notice of violation, Grantor shall carry out the cure recommended in such notice within the time periods described in Section 7(c), above. Notwithstanding Section 7(g), failure to cure within said time periods shall entitle Grantee to the remedies described in Section 7(dX (3) This Section 7(f) shall not apply to Section 7(g). below. (g) Immediate Action. If Grantee determines that circumstances require immediate action to prevent or mitigate significant damage to the Conservation Values of the Property, Grantee may immediately pursue all available remedies, including injunctive relief, available pursuant to both this Conservation Easement and state and federal law after giving Grantor at least twenty-four (24) hours written notice before pursuing such remedies. So long as such twenty four (24) hour notice is given, Grantee may immediately pursue all available remedies without waiting for the expiration of the time periods provided for cure or notice of dispute as described in Section 7(c) and Section 7(fK above. The written notice pursuant to this paragraph may be transmitted to Grantor by facsimile and shall be copied to all other parties listed in Section 12 of this Conservation Easement. The rights of Grantee under this paragraph apply equally to actual or threatened violations of the terms of this Conservation Easement. Grantor agrees that the remedies at law for Grantee for any violation of the terms of this Conservation Easement are inadequate and that Grantee shall be entitled to the injunctive relief described in this Section, both prohibitive and mandatory, in addition to such other relief to which Grantee may be entitled, including specific performance of the terms of this Conservation Easement, without the necessity of proving either actual damages or the inadequacy of otherwise available legal remedies. The remedies described in this Section shall be cumulative and shall be 2/8/06 -11- 037225-01172734437 in addition to all remedies now or hereafter existing at law or in equity, including but not limited to, the remedies set forth in Civil Code Section 815, et seq., inclusive. (h) Violation After Transfer of Fee Title by Grantor. Following the valid transfer of the underlying fee title interest in the Property to a subsequent fee title owner, if a court of competent jurisdiction determines that the subsequent owner, has violated any term of this Conservation Easement: (1) Liability for damages shall be limited to acts or omissions covered by the Insurance Policy described in Section 8 below to the coverage limits of the policy, except as described in Section 7(h¥3) below; (2) Endowment funds set aside for the management of the Property shall not be used to pay any damages; (3) If a violation arises from an intentional act by the Homeowners Association or the Conservation Entity, the Homeowners Association or the Conservation Entity (as applicable) shall be liable for the full extent of damages resulting from the violation, even if beyond the limits of any insurance policy; (4) In lieu of monetary damages. Grantee may agree to accept fee title to and management responsibility of the Property, or direct fee title and management responsibility to a new Grantor, which shall be a public agency or non-profit corporation eligible to hold Conservation Easements under Civil Code Section 815.3. Prior to accepting fee title and management responsibility, Grantee shall assign this Conservation Easement to a willing third party beneficiary to this agreement pursuant to the terms of Section 12 of this Conservation Easement. However, if at any time City accepts fee title with intent to thereafter transfer the property to a Conservation Entity, City may reserve the Conservation Easement for itself upon transfer of the fee title to the Conservation Entity. (5) This Section shall only be applicable to the Homeowners Association and Conservation Entity. (i) Acts Beyond Grantor's Control. Nothing contained in this Conservation Easement shall be construed to entitle Grantee to bring any action against Grantor or make any claim on Grantor's insurance policy for any injury to or change in the Conservation Easement Property resulting from: (1) Any cause beyond Grantor's control, including without limitation, fire, flood, storm, and earth movement; or (2) Any prudent action taken by Grantor, under emergency conditions to prevent, abate, or mitigate significant injury to persons and/or the Property resulting from such causes; (3) Acts by Grantee, any third party beneficiary, or their employees, directors, officers, agents, contractors, or representatives; or 2/8/06 -12- 037225-0117 273443 7 (4) Acts of third parties (including any governmental agencies) that are beyond Grantor's, its successors or assign's control, except to the extent Grantor is obligated to repair and restore the Property pursuant to Section 6(e) above and so long as Grantor takes reasonable steps to prevent prohibited uses of the Property. Notwithstanding the foregoing, Grantor must obtain any applicable governmental permits and approvals for any activity or use permitted by this Conservation Easement, and undertake any activity or use in accordance with all applicable federal, state, local and administrative agency statutes, ordinances, rules, regulations, orders or requirements. (j) Enforcement Discretion. Enforcement of the terms of this Conservation Easement shall be at the discretion of Grantee. Any forbearance by Grantee to exercise rights under this easement in the event of any breach of any term of this easement by Grantor shall not be deemed or construed to be a waiver by Grantee of such term or of any subsequent breach of the same or any other term of this Conservation Easement or of any of the rights of Grantee under this Conservation Easement. No delay or omission by Grantee in the exercise of any right or remedy upon any breach by Grantor shall impair such right or remedy or be construed as a waiver. 8. Insurance. Grantor and its successors in ownership of the Property shall, during its, his, her or their ownership of any portion of the Property, establish and maintain a policy of Commercial General Liability Insurance, in a form reasonably approved by Grantee , with a minimum coverage of $2 million per incident. The insurance shall be for legal liability arising out of bodily injury and tangible property damage, including tangible property damage to the Conservation Easement. The policy shall include an endorsement naming Grantee and third party beneficiaries as additional insureds, which policy shall provide primary coverage for Grantee in the event of any claim naming Grantee that is covered by the policy. The policy shall be the source of payment for any liability claims against such successor under this Conservation Easement paid after judgment or settlement, covered by the policy. 9. Costs and Liabilities. Grantor and its successors and assigns retain all responsibilities and shall bear all costs and liabilities of any kind relating to the ownership, operation, upkeep, and maintenance of the Property. Grantor agrees that neither Grantee nor third party beneficiaries shall have any duty or responsibility for the operation or maintenance of the Property, the monitoring of hazardous conditions thereon, or the protection of Grantor, the public or any third parties from risks relating to conditions on the Property. Grantor remains solely responsible for obtaining any applicable governmental permits and approvals for any activity or use permitted by this Conservation Easement, and any activity or use shall be undertaken in accordance with all applicable federal, state, local and administrative agency statutes, ordinances, rules, regulations, orders and requirements. 10. Hold Harmless. Grantor shall hold harmless, protect and indemnify Grantee and its directors, officers, employees, agents, contractors, and representatives and the heirs, personal representatives, successors and assigns of each of them (each a "Grantee Indemnified Party" and, collectively, "Grantee's Indemnified Parties") and third party beneficiaries and their directors, officers, employees, agents, contractors, and representatives and the heirs, personal representatives, successors and assigns of each of them (each a "Third Party Beneficiary 2/8/06 -13- 037225-0117 273443 7 Indemnified Party" and, collectively, "Third Party Beneficiary Indemnified Parties") from and against any and all liabilities, penalties, costs, losses, damages, expenses (including, without limitation, reasonable attorneys' fees and experts' fees), causes of action, claims, demands, orders, liens or judgments (each a "Claim" and, collectively, "Claims"), arising from or in any way connected with: (1) injury to or the death of any person, or physical damage to any property, resulting from any act, omission, condition, or other matter related to or occurring on or about the Property, regardless of cause, except that (a) this indemnification shall be inapplicable to Grantee's Indemnified Parties with respect to any Claim due solely to the negligence of Grantee or any of its employees and (b) this indemnification shall be inapplicable to Third Party Beneficiary Indemnified Parties with respect to any Claim due solely to the negligence of third party beneficiaries or any of their employees; (2) the obligations specified in Sections 4 and 9; and (3) the existence or administration of this Conservation Easement. If any action or proceeding is brought against any of the Grantee Indemnified Parties and/or Third Party Beneficiary Indemnified Parties by reason of any such Claim, Grantor shall, at the election of and upon written notice from Grantee or third party beneficiary or beneficiaries, defend such action or proceeding by counsel reasonably acceptable to Grantee and/or the applicable Third Party Beneficiary Indemnified Party or Parties or reimburse the Grantee for attorneys fees and/or applicable third party beneficiary or beneficiaries for all charges incurred for services of the Attorney General in defending the action or proceeding. 11. Access. This Conservation Easement does not convey a general right of access to the Property by the public. The Conservation Easement will allow for access to the Property for Grantee and its designees, third party beneficiaries and third-party easement holders of record at the time of this Conservation Easement is recorded at locations designated in easements and reservations of rights recorded in the chain of title to the Property. This Conservation Easement will allow for the Property to be available for approved scientific investigations. 12. Assignment and Subsequent Transfers. (a) By Grantee. This Conservation Easement is transferable by Grantee, but Grantee may assign its rights and delegate obligations under this Conservation Easement only to an entity or organization authorized to acquire and hold conservation easements pursuant to Civil Code Section 815.3 (or any successor provision then applicable) . Grantee shall require the assignee to record the assignment in the county where the Property is located. (b) By Grantor. (1) The covenants, conditions, and restrictions contained in this Conservation Easement Deed are intended to run with the land and bind all future owners of any interest in the Property. Grantor agrees to incorporate by reference the terms of this Conservation Easement in any deed or other legal instrument by which Grantor divests itself of any interest in all or a portion of the Property, including, without limitation, a leasehold interest. Grantor agrees to transfer the endowment funds with the fee title to the Property. Grantor agrees to give written notice to Grantee and to all third party beneficiaries of the intent to transfer any interest in the Property at least forty-five (45) days prior to the date of such transfer. Except for a transfer to a Homeowner's Association, Grantee shall have the right to prevent any other subsequent transfers in 2/8/06 -14- 037225-0117 273443 7 which the prospective subsequent claimants or transferees are not given notice of the covenants, terms, conditions and restrictions of the Conservation Easement, or in which prospective subsequent claimants or transferees are not a government entity, or a tax- exempt nonprofit organization qualified under Section 501(c)(3) of the Internal Revenue Code and qualified to do business in this state, which has as its primary purpose the preservation, protection, or enhancement of land in its natural, scenic, historical, agricultural, forested, or open-space condition or use, or the state or any city, county, city and county, district, or other state or local governmental entity. (2) From and after the date of any valid transfer of all or any portion of the Property by Grantor and each transfer thereafter, (i) the transferee shall be deemed to have assumed all of the obligations of Grantor as to the portion transferred, as set forth in this Conservation Easement, except the transferee shall have no obligation under Section 17(b) with respect to Hazardous Materials placed, disposed or released on the property before the transferee acquired title to the property, (ii) the transferee shall be deemed to have accepted the restrictions contained herein as to the portion transferred, (iii) the transferor, as applicable, shall have no further obligations hereunder except for Indemnification under Section 17(b). and (iv) all references to Grantor in this Conservation Easement shall thereafter be deemed to refer to such transferee. (3) The failure of Grantor to perform any act provided in this Section shall not impair the validity of this Conservation Easement or limit its enforceability in any way. (c) Easements. Other than as shown in the IOD or on Exhibit "C" and except for a management and maintenance easement in favor of the Homeowners Association that is consistent with the Purpose of this Conservation Easement, Grantor, its successors and assigns shall not grant additional easements or other interests in the Property without the prior written authorization of Grantee, which consent shall not be unreasonably withheld. It shall be reasonable for Grantee to withhold consent for the grant of additional easements or other interest in the Property that are in material direct or potential conflict with the preservation of the Natural Condition of the Property as defined in Section Kb) of this Conservation Easement. Grantor, its successors and assigns shall promptly record any additional easements or other interests in the Property in the official records of San Diego County, California and immediately notify the Grantee and third party beneficiaries through the mailing of a conformed copy of the recorded document. 13. Notices. All notices, demands, requests, consents, approvals, or communications from one party to another shall be personally delivered or sent by facsimile to the persons set forth below or shall be deemed given five (5) days after deposit in the United States mail, certified and postage prepaid, return receipt requested, and addressed as follows, or at such other address as any Party may from time to time specify to the other parties in writing: 2/8/06 -15- 037225-01172734437 To Grantor: Keystone Carlsbad 28, LLC 5333 Mission Center Road, Suite 360 San Diego, CA 92108 Attn: Mr. Ross Felber FAX 619-299-4845 To Grantee: City of Carlsbad Carlsbad City Clerk's Office 1200 Carlsbad Village Drive Carlsbad, CA 92008 FAX 760-720-6917 With a copy to: Regional Manager Department of Fish and Game 4949 Viewridge Avenue San Diego, CA 92123 FAX: 858-467-4299 General Counsel Department of Fish and Game Office of the General Counsel 1416 Ninth Street, 12th Floor Sacramento, CA 95814-2090 FAX: 916-654-3805 U.S. Fish and Wildlife Service 6010 Hidden Valley Road Carlsbad, CA 92009 FAX: 760-431-5902 District Manager California Coastal Commission San Diego Coast District 7575 Metropolitan Drive, Suite 103 San Diego, CA 92108-4402 FAX: (619)767-2384 The parties agree to accept facsimile signed documents and agree to rely upon such documents as if they bore original signatures. Each party agrees to provide to the other parties, within seventy-two (72) hours after transmission of such a facsimile, the original documents that bear the original signatures. 14. Amendment. Grantor and Grantee may amend this Conservation Easement only by mutual written agreement. Any such amendment shall be consistent with the Purpose of this Conservation Easement and shall not affect its perpetual duration. Any such amendment shall be 2/8/06 -16- 037225-0117 273443 7 recorded in the official records of San Diego County, State of California. Any such amendment shall be recorded in the official records of San Diego County, State of California. Grantor, its successors or assigns, shall promptly notify the Grantee and third party beneficiaries through the mailing of a conformed copy of the recorded amendment(s). 15. Recordation. Grantee shall promptly record this instrument in the official records of San Diego County, California and promptly notify the Grantor and third party beneficiaries through the mailing of a conformed copy of the recorded easement. 16. Estoppel Certificates. Upon request, Grantee shall within fifteen (15) days execute and deliver to Grantor, its successors or assigns any document, including an estoppel certificate, which certifies, to Grantee's best knowledge, Grantor's, its successors or assign's compliance with any obligation of Grantor, its successor or assign contained in this Conservation Easement and otherwise evidences the status of this Conservation Easement, to the extent known by Grantee, as may be requested by Grantor, its successor or assigns. 17. General Provisions. (a) Taxes; No Liens. Grantor or subsequent transferees shall pay before delinquency all taxes, assessments, fees, and charges of whatever description levied on or assessed against the Property by competent authority, including any taxes imposed upon, or incurred as a result of, this Conservation Easement, and shall furnish Grantee with satisfactory evidence of payment upon request. Grantor shall keep Grantee's interest in the Property free from any liens. (b) No Hazardous Materials Liability. Grantor represents and warrants that it has no knowledge of any release or threatened release of Hazardous Materials (defined below) in, on, under, about or affecting the Property. Without limiting the obligations of Grantor under Section 10, Grantor agrees to indemnify, protect and hold harmless the Grantee Indemnified Parties and the Third Party Beneficiary Indemnified Parties (defined in Section 10) against any and all Claims (defined in Section 10) arising from or connected with any Hazardous Materials present, alleged to be present, or otherwise associated with the Property at any time, except that (I) this indemnification shall be inapplicable to the Grantee Indemnified Parties with respect to any Hazardous Materials placed, disposed or released by Grantee, its employees or agents, and (II) this indemnification shall be inapplicable to the Third Party Beneficiary Indemnified Parties with respect to any Hazardous Materials placed, disposed or released by third party beneficiaries, their employees or agents. If any action or proceeding is brought against the Grantee and/or any of the Third Party Beneficiary Indemnified Parties by reason of any such Claim, Grantor shall, at the election of and upon written notice from Grantee and/or the applicable third party beneficiary or beneficiaries, defend such action or proceeding by counsel reasonably acceptable to the Grantee and/or applicable Third Party Beneficiary Indemnified Party or Parties or reimburse the Grantee for attorneys fees and/or applicable third party beneficiary or beneficiaries for all charges incurred for services of the California Attorney General in defending the action or proceeding. Despite any contrary provision of this Conservation Easement Deed, the parties do not intend this Conservation Easement to be, and this Conservation Easement shall not be, 2/8/06 -17- 0372254)1172734437 construed such that it creates in or gives to Grantee or the third party beneficiaries any of the following: (1) The obligations or liabilities of an "owner" or "operator," as those terms are defined and used in Environmental Laws (defined below), including, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (42 U.S.C. Section 9601 el seq.; hereinafter, "CERCLA"); or (2) The obligations or liabilities of a person described in 42 U.S.C. Section 9607(a)(3) or (4); or (3) The obligations of a responsible person under any applicable Environmental Laws; or (4) The right to investigate and remediate any Hazardous Materials associated with the Property; or (5) Any control over Grantor's ability to investigate, remove, remediate or otherwise clean up any Hazardous Materials associated with the Property. The term "Hazardous Materials" includes, without limitation, (a) material that is flammable, explosive or radioactive; (b) petroleum products, including by- products and fractions thereof; and (c) hazardous materials, hazardous wastes, hazardous or toxic substances, or related materials defined in CERCLA, the Hazardous Materials Transportation Act (49 U.S.C. Section 6901 et seq.); the Hazardous Waste Control Law (California Health & Safety Code Section 25100 et seq.); the Hazardous Substance Account Act (California Health & Safety Code Section 25300 et seq.), and in the regulations adopted and publications promulgated pursuant to them, or any other applicable federal, state or local laws, ordinances, rules, regulations or orders now in effect or enacted after the date of this Conservation Easement Deed. The term "Environmental Laws" includes, without limitation, any federal, state, local or administrative agency statute, ordinance, rule, regulation, order or requirement relating to pollution, protection of human health or safety, the environment or Hazardous Materials. Grantor represents, warrants and covenants to Grantee and CDFG that Grantor's activities upon and use of the Property will comply with all Environmental Laws. (c) Warranty. Grantor represents and warrants that (1) there are no outstanding monetary liens or conservation easements senior in priority to this Conservation Easement Deed, and (2) the Property is not subject to any other encumbrances other than those of record. Upon the recording of this Conservation Easement, Grantor will obtain title insurance policies on the Property in an amount equal to the fair market value of the Property for Grantee. (d) No Forfeiture. Nothing contained herein will result in a forfeiture or reversion of Grantor's title in any respect. (e) Condemnation. The Purpose of this Conservation Easement is presumed to be the best and most necessary public use as defined in Code of Civil Procedure Section 2/8/06 -18- 0372254)117 273443 7 1240.680 notwithstanding Code of Civil Procedure Sections 1240.690 and 1240.700. Nevertheless, if the Property is taken, in whole or in part, by exercise of the power of eminent domain, Grantor and Grantee shall be entitled to compensation in accordance with applicable law. (f) Termination of Rights and Obligations. A party's rights and obligations under this Conservation Easement shall terminate upon transfer of the party's interest in the Conservation Easement or Property (respectively), except that liability for acts or omissions occurring prior to transfer shall survive transfer. (g) Successors. The covenants, terms, conditions, and restrictions of this Conservation Easement shall be binding upon, and inure to the benefit of, the parties hereto and their respective personal representatives, heirs, successors, and assigns and shall continue as a servitude running in perpetuity with the Property. The covenants hereunder benefiting Grantee shall also benefit third party beneficiaries. (h) Controlling Law. The laws of the State of California and the laws of the United States shall govern the interpretation and performance of this Conservation Easement. Any subsequent amendment or repeal of state law or order that authorizes this Conservation Easement shall not affect the rights conveyed to the Grantee or its successors or assigns. (i) Severabilitv. If a court of competent jurisdiction voids or invalidates on its face any provision of this Conservation Easement, such action shall not affect the remainder of this Conservation Easement. If a court of competent jurisdiction voids or invalidates the application of any provision of this Conservation Easement to a person or circumstance, such action shall not affect the application of the provision to other persons or circumstances. (j) Liberal Construction. Any general rule of construction to the contrary notwithstanding, this Conservation Easement shall be liberally construed in favor of the grant to effect the purposes of this Conservation Easement and the policy and purpose of Civil Code Section 815, et seq. If any provision in this instrument is found to be ambiguous, an interpretation consistent with the purposes of this Conservation Easement that would render the provision valid shall be favored over any interpretation that would render it invalid. (k) Captions. The captions in this instrument have been inserted solely for convenience of reference and are not a part of this instrument and shall have no effect upon construction or interpretation. (1) Exhibits. All Exhibits referred to in this Conservation Easement are attached and incorporated herein by reference. (m) Entire Agreement. This instrument sets forth the entire agreement of the parties with respect to the Conservation Easement and supersedes all prior discussions, negotiations, understandings, or agreements relating to the Conservation Easement, all of which are merged herein. No alteration or variation of this instrument shall be valid or binding unless contained in an amendment in accordance with Section 14. 2/8/06 -19- 037225-0117 273443 7 (n) Counterparts. The parties may execute this instrument in two or more counterparts, which shall, in the aggregate, be signed by Grantor and Grantee; each counterpart shall be deemed an original instrument as against any party who has signed it. In the event of any disparity between the counterparts produced, the recorded counterpart shall be controlling. IN WITNESS WHEREOF, Grantor and Grantee have entered into this Conservation Easement the day and year first above written and have agreed to be bound by the terms and provisions hereof. AUTHORITY The individuals executing this Conservation Easement and the instruments referenced in it on behalf of Grantor and Grantee each represent and warrant that they have the legal power, right and actual authority to bind them to the terms and conditions of this Conservation Easement. GRANTOR KEYSTONE CARLSBAD 28 LLC, a California limited liability company BY: KEYSTONE COMMUNITIES, INC., a California cojqpopition, Manager **Rw S (sign here)sgnT C& (print name/title) APPROVED AS TO FORM: RONALD Rj BAJfL, City Attorney By:_ istant City Attorney 2/8/06 -20- 037225-0117 273443 7 STATE OF CALIFORNIA COUNTY OF 5AM PUO I SS. On fcffljjWi 15. 1QO\0 _ before me, flPLffl, /Mf/fly PfJlftUfs . personally appeared _ personally known to me (or proved to me on the basis of satisfactory evidence) to the person^ whose name^) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(4es-), and that by his/her/their signatured) on the instrument the person^), or the entity upon behalf of which the person($) acted, executed the instrument.T1SHACOLPO WITNESS my hand and official seal. ffe^fi^ Notary Public - CaWomta Signature STATE OF CALIFORNIA COUNTY OF } SS. On before me, , personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to 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 2/8/06 -21- 037225-0117 273443 7 EXHIBIT "A" LEGAL DESCRIPTION BEING A PORTION OF LOT 29 OF CITY OF CARLSBAD TRACT NO. 98-05, DEJONG PROPERTY, IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 14636, FILE IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY ON JULY 23, 2003, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHEAST CORNER OF SAID LOT 29; THENCE ALONG THE EASTERLY, SOUTHERLY AND SOUTHWESTERLY LINE OF SAID LOT 29 THE FOLLOWING: SOUTH 1°21'12" EAST, 964.12 FEET; THENCE NORTH 87°29I27" WEST, 449.14 FEET; THENCE NORTH 43"11'32" WEST, 20.76 FEET TO A POINT ON THE EASTERLY LINE OF THE FIRE HAZARD REDUCTION ZONE PER SECTION 142-0412 OF THE LAND DEVELOPMENT CODE AS SHOWN AND DESCRIBED ON SHEET NO. 8 OF SAID MAP 14636; THENCE LEAVING SAID SOUTHWESTERLY LINE ALONG SAID EASTERLY LINE THE FOLLOWING: NORTH 35°36'54" WEST, 144.39 FEET; THENCE NORTH 41°08'4r WEST, 66.16 FEET; THENCE NORTH 42008'30" WEST, 69.67 FEET; THENCE NORTH 40°32'32" WEST, 50.06 FEET; THENCE NORTH 39°51'29" WEST, 172.52 FEET; THENCE NORTH 41°09'34" WEST, 35.54 FEET; THENCE NORTH 53°28'47" WEST, 55.14 FEET; THENCE SOUTH 82°24'25" WEST, 72.77 FEET; THENCE SOUTH 68°45'09" WEST, 45.44 FEET; THENCE SOUTH 59°37'22" WEST, 47.59 FEET; THENCE SOUTH 4r09'13" WEST, 66.19 FEET;THENCE SOUTH 51°09'36" WEST, 14.33 FEET; THENCE SOUTH 57°10'20" WEST, 37.24 FEET; THENCE SOUTH 77°55'04" WEST, 18.66 FEET; THENCE NORTH 58°33'05" WEST, 26.78 FEET; THENCE NORTH 40°D6'15H WEST, 57.28 FEET; THENCE NORTH 8°57'56" WEST, 3.80 FEET; THENCE NORTH 32'28'05" WEST, 43.50 FEET; THENCE NORTH 25°26>09B WEST, 13.64 FEET; THENCE NORTH 9°02'33" WEST, 45.69 FEET; THENCE NORTH 2"02'04" WEST, 23.74 FEET; THENCE NORTH 51°16W WEST, 5.04 FEET; THENCE NORTH 50°57'51" WEST, 4.96 FEET; THENCE SOUTH 85°19'33" WEST, 10.00 FEET; THENCE NORTH 72°33'ir WEST, 6.44 FEET; THENCE NORTH 84°13'15" WEST, 5.40 FEET; THENCE SOUTH 79*58'42" WEST, 12.86 PAGE 1 OF 3 M.\2419\legal DescriptionsVAOt LOT 29 Conservation Esmt.doc WO 2419-3 1Q/13W FEET; THENCE NORTH 9"44'45" WEST, 5.58 FEET; THENCE NORTH 16°00*03" EAST. 19,06 FEET; THENCE NORTH 20a20'08" EAST, 17,98 FEET; THENCE NORTH <\9*Q2'Q8" EAST. 12.54 FEET; THENCE NORTH 28013119" EAST, 13.06 FEET; THENCE NORTH 38°12'59" EAST, 13.36 FEET; THENCE NORTH 43°31'24" EAST, 16,12 FEET; THENCE NORTH 43°53'53" EAST. 16.33 FEET; THENCE NORTH 37038'43" EAST, 17.27 FEET; THENCE NORTH 13*36'28" EAST, 21.35 FEET; THENCE NORTH 17°42'35" EAST, 33.93 FEET; THENCE NORTH 18°24'06I< EAST, 17.39 FEET; THENCE NORTH 24°58111M EAST, 49.51 FEET; THENCE NORTH 24°25'43" WEST. 82.05 FEET; THENCE NORTH 3°04'17" WEST, 47.95 FEET; THENCE NORTH 43°03'55" WEST, 46.85 FEET; THENCE LEAVING THE EASTERLY LINE OF SAID FIRE HAZARD REDUCTION ZONE ALONG A LINE THE IS 5.00 FEET SOUTHERLY OF AND PARALLEL WITH THE SOUTHERLY LINE OF LOT 27 OF SAID MAP NO. 14636, NORTH 89659'33" EAST, 14.16 FEET TO A POINT ON THE EASTERLY LINE OF SAID FIRE HAZARD REDUCTION ZONE; THENCE LEAVING SAID PARALLEL LINE, ALONG THE EASTERLY LINE OF SAID FIRE HAZARD REDUCTION ZONE THE FOLLOWING: SOUTH 54°48'55" EAST, 98.52 FEET; THENCE SOUTH 29°39'19" EAST, 15.89 FEET; THENCE SOUTH 31°58'50" WEST. 35.28 FEET; THENCE SOUTH 72°33'24" EAST. 22.27 FEET; THENCE SOUTH 87°02'02" EAST, 20.52 FEET; THENCE NORTH 90°OQW EAST. 4.86 FEET; THENCE NORTH 89°04'47" EAST. 9.41 FEET; THENCE NORTH 86e28'46" EAST, 15.27 FEET; THENCE NORTH 86°08'04" EAST, 3.82 FEET; THENCE SOUTH 87°16'35" EAST, 5.19 FEET; THENCE SOUTH 77°40'38" EAST, 8.58 FEET; THENCE SOUTH 56W37" EAST, 7.81 FEET; THENCE LEAVING SAID FIRE HAZARD REDUCTION ZONE SOUTH 42°54'00" EAST, 18.40 FEET; THENCE SOUTH 53"04'00" EAST. 15.68 FEET; THENCE SOUTH 67°09'00" EAST, 34.17 FEET; THENCE SOUTH 46°21'00" EAST, 5.58 FEET; THENCE NORTH 60°38'00" EAST. 14.28 FEET; THENCE NORTH 71*42'00" EAST. 25.20 FEET; THENCE NORTH 75°32'00" EAST, 25.61 FEET; THENCE NORTH 53°40*00" EAST, 28.62 FEET; THENCE NORTH 20°20'00" EAST, 29.68 FEET; THENCE NORTH 00°5rOOB EAST, 26.61 FEET; THENCE NORTH 26M2W WEST, 115.92 FEET; THENCE NORTH 0°00'27" WEST, 2.13 FEET TO THE NORTHERLY LINE OF SAID LOT 29; THENCE ALONG SAID NORTHERLY LINE, NORTH 89e59'33" EAST. 906.95 FEET TO THE POINT OF BEGINNING. EXCEPTING THEREFROM THAT LAND DESCRIBED IN THE FOLLOWING EASEMENTS: EASEMENT GRANT DEED TO SAN DIEGO GAS & ELECTRIC COMPANY RECORDED JULY 21, 1954 IN BOOK 5307, PAGE 311 OF OFFICIAL RECORDS OF SAID SAN DIEGO PAGE 2 OF 3 M:\2419\Lega! Deseripl»ons\AD1 LOT 29 Conservation Esmtdoc WO 2419-3 1W13/05 COUNTY, DRAINAGE EASEMENT GRANTED TO THE CITY OF CARLSBAD PER SAID MAP NO. 14636, AND DRAINAGE EASEMENT GRANTED TO THE CITY OF CARLSBAD PER DEED RECORDED DECEMBER 3, 2001 AS FILE NO. 2001-0879699 OF OFFICIAL RECORDS OF SAID SAN DIEGO COUNTY. THE HEREINABOVE DESCRIBED PARCEL OF LAND CONTAINS 16.897 ACRES, MORE OR LESS. DAVID W. AMBLER ' L£. 7322 HUNSAKER & ASSOCIATES SAN DIEGO, INC. PAGE 3 OF 3 M:\2419VLegaJ DescripttonsVAOt LOT 29 ConservaBon Esmldoc WO 2419-3 W13AJ5 EXHIBIT 0 P.O.R- \ FIRE HAZARD REDUCTION ZONE PER SECTION 142-0412 OF THE LAND DEVELOPMENT CODE AS SHOWN AND DESCRIBED ON SHEET 8 OF MAP NO. 14636 INDICATES CONSERVATION EASEMENT, AREA - 16.897 ACRES HUNSAKER & ASSOCIATES SAN DlfCO, I H C Wm Hutnntkm 5t Suce MO ENQNEBUNG Sw Oiefq. Ca ntn SUKVEYMC \0006\IrtttP\EP CONSERVATION EASEMENT SHT 01.D*G[ 2167]Oct-13-20C»: 10: 37 EXHIBIT "C" Title Report 1. Chicago Title Company's Preliminary Report for Order No. 53040766, dated as of September 26, 2005 (attached); and 2. Chicago Title Company's Supplemental Report for Order No. 53040766, dated as of October 31, 2005 (attached). 10/28/05 -1- 037225-0117 273443 6 CHICAGO TITLE COMPANY PRELIMINARY REPORT SECOND AMENDED Dated as of: September 26,2005 at 7:30 AM Reference: CONSERVATION LAND Order No.: 53040766 - U50 CHICAGO TITLE COMPANY hereby reports that it is prepared to issue, or cause to be issued, as of the date hereof, a Policy or Policies of Title Insurance describing the land and the estate or interest therein hereinafter set forth, insuring against loss which may be sustained by reason of any defect, lien or encumbrance not shown or referred to as an Exception in Schedule B or not excluded from coverage pursuant to the printed Schedules, Conditions and Stipulations of said Policy forms. The printed Exceptions and Exclusions from the coverage of said Policy or Policies are set forth in the attached list. Copies of the Policy forms are available upon request. Please read the exceptions shown or referred to in Schedule B and the exceptions and exclusions set forth In the attached list of this report carefully. The exceptions and exclusions are meant to provide you with notice of matters which are not covered under the terms of title insurance policy and should be carefully considered. It Is important to note that this preliminary report Is not a written representation as to the condition of title and may not list all liens, defects and encumbrances affecting title to the land. THIS REPORT (AND ANY SUPPLEMENTS OR AMENDMENTS HERETO) IS ISSUED SOLELY FOR THE PURPOSE OF FACILITATING THE ISSUANCE OF POLICY OF TITLE INSURANCE AND NO LIABILITY IS ASSUMED HEREBY. IF IT IS DESIRED THAT LIABILITY BE ASSUMED PRIOR TO THE ISSUANCE OF POLICY OF TITLE INSURANCE, A BINDER OR COMMITMENT SHOULD BE REQUESTED The form of policy of title insurance contemplated by this report is: CALIFORNIA LAND TITLE ASSOCIATION STANDARD COVERAGE POLICY Vfset Us On The Web: westerndivision.cn.com Title Department: CHICAGO TITLE COMPANY 2365 NORTHSIDE DR. #500 SAN DIEGO, CA 92108 (619)521-3673 fax:(619)521-3608 Tom Vote) / Ken Cyr TITLE OFFICER PFP -<38/05/9ebk SCHEDULE A Order No: 53040766 U50 Your Ref: CONSERVATION LAND 1. The estate or interest in the land hereinafter described or referred to covered by this report is: AN EASEMENT 2. Title to said estate or interest at the date hereof is vested in: KEYSTONE CARLSBAD 28 LLC, A CALIFORNIA LIMITED LIABILITY COMPANY 3. The land referred to in this report is situated in the State of California, County of SAN DIEGO and is described as follows: SEE ATTACHED DESCRIPTION PREA -lO/SI/STWi Page i DESCRIPTION Order No. 5304Q7S6 A CONSERVATION EASEMENT OVER AND ACROSS A PORTION OF LOT 29 OF CITY OF CARLSBAD TRACT NO. 98-05, DEJONG PROPERTY, IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 14636, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY ON JULY 23, 2003, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE NORTHEAST CORNER OF SAID LOT 29; THENCE ALONG THE EASTERLY, SOUTHERLY AND SOUTHWESTERLY LINE OF SAID LOT 29 THE FOLLOWING: SOUTH 1°21'I2" EAST, 964.12 FEET; THENCE NORTH 89°29'27" WEST, 449.14 FEET; THENCE NORTH 43°11'32" WEST, 20.76 FEET TO A POINT ON THE EASTERLY LINE OF THE FIRE HAZARD REDUCTION ZONE PER SECTION 142-0412 OF THE LAND DEVELOPMENT CODE AS SHOWN AND DESCRIBED ON SHEET NO. 8 OF SAID MAP 14636; THENCE LEAVING SAID SOUTHWESTERLY LINE ALONG SAID EASTERLY LINE THE FOLLOWING: NORTH 35°36'S4" WEST, 144.39 FEET; THENCE NORTH 41°08'41" WEST, 66.16 FEET; THENCE NORTH 42°Q8'30" WEST, 69.67 FEET; 50.06 FEET; THENCE NORTH 39°51'29n WEST, 172 . 52 35.54 FEET; THENCE NORTH S3°28'47" WEST 72.77 FEET THENCE NORTH 40°32'32" WEST, FEET; THENCE NORTH 41°09'34" WEST, FEET; THENCE SOUTH 82°24'25" WEST, FEET; THENCE SOUTH 5 9 ° 3 7'2 2" WEST, FEET; THENCE SOUTH 51°09'36" WEST, FEET; THENCE SOUTH 77°55'04" WEST, FEET; THENCE NORTH 40°06'15" WEST, FEET; THENCE NORTH 32°28'05" WEST, FEET; THENCE NORTH 09°02'33" WEST, FEET; THENCE NORTH 51°16'04" WEST, FEET; THENCE SOUTH 85°19'33" WEST, FEET; THENCE NORTH 84°13'15" WEST, FEET; THENCE NORTH 09°44'45" WEST, FEET; THENCE NORTH 20°20'08" EAST, FEET; THENCE NORTH 2 8 ° 13 ' 19 " EAS T, FEET; THENCE NORTH 43°31'24" EAST, FEET; THENCE NORTH 37°38'43" EAST, THENCE NORTH 17°42'35" EAST, THENCE NORTH 24e58'll" EAST, THENCE NORTH 03°04'17" WEST, FEET; FEET ; FEET; FEET; THENCE SOUTH 68°45'09" WEST, 47.59 FEET; THENCE SOUTH 41°09'13" WEST, 14.33 FEET; THENCE SOUTH 57°10'20" WEST, 18.66 FEET; THENCE NORTH 58°33'05" WEST, 57.28 FEET; THENCE NORTH 08°57'56" WEST, 43.50 FEET; THENCE NORTH 2 5 °26'0 9 45.69 FEET; THENCE NORTH 02002'04 5.04 FEET; THENCE NORTH 50°S7'S1" WEST, 10.00 FEET; THENCE NORTH 72°33'11" WEST S.40 FEET; THENCE SOUTH 79°58'42" WEST, 5.58 FEET; THENCE NORTH 16°00'03" EAST, 17.98 FEET; THENCE NORTH 19°02'08" EAST 13.06 FEET; THENCE NORTH 33°12'59" EAST 16.12 FEET; THENCE NORTH 43"53'53" EAST 17.27 FEET; THENCE NORTH 13°36'28" EAST 33.93 FEET; THENCE NORTH 18°24'06" EAST 49.51 FEET; THENCE NORTH 24°25'43" WEST 55. 14 45.44 66. 19 37 .24 26.78 3 .80 13 .64WEST, WEST, 23.74 4 . 96 6.44 12.86 19.06 12.54 13.36 16.33 21 . 35 17 .39 82 .05 46.8547.95 FEET; THENCE NORTH 43°03'55" WEST THENCE LEAVING THE EASTERLY LINE OF SAID FIRE HAZARD REDUCTION ZONE ALONG A LINE THE IS 5.00 FEET SOUTHERLY OF AND PARALLEL WITH THE SOUTHERLY LINE OF LOT 27 OF SAID MAP NO. 14636, NORTH 89°59'33" EAST, 14.16 FEET TO A POINT ON THE EASTERLY LINE OF SAID FIRE HAZARD REDUCTION ZONE; THENCE LEAVING SAID PARALLEL LINE, ALONG THE EASTERLY LINE OF SAID FIRE HAZARD REDUCTION ZONE THE FOLLOWING: SOUTH 54°48'55" EAST, 98.52 FEET; THENCE SOUTH 29°39'19" EAST, 15.89 FEET; THENCE WEST, 35.28 FEET; THENCE SOUTH 72°33'24" EAST EAST, 20.52 FEET; THENCE NORTH 90aOO'00» EAST 9.41 FEET; THENCE NORTH 86°28'46 SOUTH 31°58'50' SOUTH 87°02'02' NORTH 89°04'47" EAST, NORTH 86°08'04" EAST, SOUTH 77°40'38 EAST, 3.82 FEET; THENCE SOUTH 87°16'35" EAST, EAST, 8.58 FEET; THENCE SOUTH 56°00'37" EAST, LEAVING SAID FIRE HAZARD REDUCTION ZONE SOUTH 42°54'00" SOUTH 53°04'00" EAST, SOUTH 46°21'00" EAST, NORTH 71°42'00" EAST, NORTH S3040'00" EAST, NORTH 00°51'00" EAST, THENCE NORTH 00°00'27' EAST, 5T,15.68 FEET; THENCE SOUTH 67°09'00" EA< 5.58 FEET; THENCE NORTH 6Q°38'00" EAST, 25,20 FEET; THENCE NORTH 75°32'00" EAST, 28.62 FEET; THENCE NORTH 20°20'00" EAST, 26.61 FEET; THENCE NORTH 26°42'00" WEST, 22.27 FEET; THENCE 4.86 FEET; THENCE 15.27 FEET; THENCE 5.19 FEET; THENCE 7.81 FEET; THENCE 18.40 FEET; THENCE 34,17 FEET; THENCE 14.28 FEET; THENCE 25.61 FEET; THENCE 29.68 FEET; THENCE 115,92 FEET; WEST, 2.13 FEET TO THE NORTHERLY LINE OF SAID LOT 29; THENCE ALONG SAID OP BEGINNING. NORTHERLY LINE, NORTH 89°59'33" EAST, 906.95 FEET TO THE POINT Page 2 DESCRIPTION Order No. 53040766 EXCEPTING THEREFROM THAT 1AND DESCRIBED IN EASEMENT GRANT DEED TO SAN DIEGO GAS & ELECTRIC COMPANY RECORDED JULY 21, 1954 IN BOOK 5307, PAGE 311 OF OFFICIAL RECORDS OF SAID SAN DIEGO COUNTY. APN: 215-083-09 SCHEDULE B Page 1 Order No: 53040766 U50 Your Ref: CONSERVATION LAND At the dale hereof exceptions to coverage in addition to the printed Exceptions and Exclusions in the policy form designated on the face page of this Report would be as follows: A 1. PROPERTY TAXES, INCLUDING ANY ASSESSMENTS COLLECTED WITH TAXES, TO BE LEVIED FOR THE FISCAL YEAR 2005-2006 THAT ARE A LIEN NOT YET DUE. a 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. c 3. AN EASEMENT FOR THE PURPOSE SHOWN BELOW AND RIGHTS INCIDENTAL THERETO AS SET FORTH IN A DOCUMENT GRANTED TO: PURPOSE: RECORDED: AFFECTS: SAN DIEGO GAS AND ELECTRIC COMPANY THE RIGHT OF INGRESS AND EGRESS TOGETHER WITH THE RIGHT TO TRIM AND TOP TREES JULY 21, 1954 IN BOOK 5307, PAGE 311 OF OFFICIAL RECORDS AS SHOWN ON MAP 14636 SAID EASEMENT IS ALSO SHOWN AND DESCRIBED AS "138 KV LINE ENCINO TO OLIVENHAIN" OF RECORD OF SURVEY NO. 6269. 4. A PENDING ASSESSMENT FOR THE DISTRICT SHOWN BELOW. WHEN NOTICE OF THE ASSESSMENT IS RECORDED WITH THE COUNTY RECORDER THE ASSESSMENT SHALL BECOME A LIEN ON SAID LAND. DISTRICT: DISCLOSED BY: RECORDED: COMMUNITIY FACILITIES DISTRICT NO. 1 ASSESSMENT DISTRICT DIAGRAM DECEMBER 19, 1990 AS DOCUMENT NO. 90-674118 OFFICIAL RECORDS NOTICE OF ASSESSMENT RECORDED MAY 20, 1991 AS FILE NO. 1991-0236959 OF OFFICIAL RECORDS 5. A PENDING ASSESSMENT FOR THE DISTRICT SHOWN BELOW. WHEN NOTICE OF THE ASSESSMENT IS RECORDED WITH THE COUNTY RECORDER THE ASSESSMENT SHALL BECOME A LIEN ON SAID LAND. DISTRICT: DISCLOSED BY; RECORDED: THE AMENDED ANNEXATION MAP NO. 1 TO BOUNDARIES OF COMMUNITY FACILITIES DISTRICT NO. 3 INSTRUMENT JUNE IS, 1995 AS FILE NO. 1995-0254037 OF OFFICIAL RECORDS c; 6. A DOCUMENT ENTITLED "CERTIFIED COPY OF RESOLUTION NO. 97-528 OVERRULING AND DENYING PROTESTS AND ESTABLISHING BRIDGE AND THOROUGHFARE DISTRICT PRE8 -10/31/97b» SCHEDULE BPase 2 (continued) Order No: 53040766 U50 Your Rcf: CONSERVATION LAND NO. 2 (AVIARA PARKWAY-POINSETTIA LANE) TO FINANCE THE COSTS OF MAJOR PUBLIC IMPROVEMENTS IN SAID CITY", EXECUTED BY CITY OF CARLSBAD, SUBJECT TO ALL THE TERMS, PROVISIONS AND CONDITIONS THEREIN CONTAINED, RECORDED JULY 22, 1.997 AS FILE NO. 1997-0349124 OF OFFICIAL RECORDS. 7, A PENDING ASSESSMENT FOR THE DISTRICT SHOWN BELOW. WHEN NOTICE OF THE ASSESSMENT IS RECORDED WITH THE COUNTY RECORDER THE ASSESSMENT SHALL BECOME A LIEN ON SAID LAND. DISTRICT: AMENDED ANNEXATION MAP NO. 3 TO BOUNDARIES OF COMMUNITY FACILITIES DISTRICT NO. 3 DISCLOSED BY: ASSESSMENT DISTRICT BOUNDARY RECORDED: MARCH 11, 1999 AS FILE NO, 1999-0157103 OF OFFICIAL RECORDS AMENDMENT TO NOTICE OF SPECIAL TAX LIEN, RECORDED MARCH 16, 1999 AS FILE NO. 1999-0169086 OF OFFICIAL RECORDS. 8, AN AGREEMENT, AND THE TERMS AND CONDITIONS AS CONTAINED THEREIN DATED: JUNE 2, 2000 BY AND BETWEEN: ARIE DE JONG, JR., FAMILY TRUST AND THE CITY OF CARLSBAD RECORDED: SEPTEMBER 22, 2000 AS FILE NO. 2000-0509413 OF OFFICIAL RECORDS REGARDING: AGREEMENT BETWEEN OWNER, DEVELOPER AND THE CITY OF CARLSBAD FOR AN UNCONTROLLED STOCKPILE (COASTAL ZONE) REFERENCE IS MADE TO SAID DOCUMENT FOR FULL PARTICULARS. 9, INTENTIONALLY OMITTED 10. A DOCUMENT ENTITLED "NOTICE OF WAIVER CONCERNING PROXIMITY OF THE PLANNED OR EXISTING POINSETTIA LANE TRANSPORTATION CORRIDOR", DATED MARCH 12, 2003 EXECUTED BY KEYSTONE CARLSBAD 28 LLC, A CALIFORNIA LIMITED LIABILITY COMPANY, SUBJECT TO ALL THE TERMS, PROVISIONS AND CONDITIONS THEREIN CONTAINED, RECORDED APRIL 1, 2003 AS FILE NO. 2003-362102, OFFICIAL RECORDS. 11. A DOCUMENT ENTITLED "NOTICE CONCERNING AIRCRAFT ENVIRONMENTAL IMPACTS", DATED MARCH 12, 2003 EXECUTED BY KEYSTONE CARLSBAD 28 LLC, A CALIFORNIA LIMITED LIABILITY COMPANY, SUBJECT TO ALL THE TERMS, PROVISIONS AND CONDITIONS THEREIN CONTAINED, RECORDED APRIL 1, 2003 AS FILE NO. 2003-362103, OFFICIAL RECORDS. 12. A COVENANT AND AGREEMENT UPON AND SUBJECT TO THE TERMS AND CONDITIONS THEREIN EXECUTED BY: KEYSTONE CARLSBAD 28, LLC IN FAVOR OF: THE CITY OF CARLSBAD PHEUMBC.B/23/K«< SCHEDULE BPase 3 (continued) Order No: 53040766 U50 Your Ref: CONSERVATION LAND RECORDED; APRIL 1, 2003 AS FILE NO. 2003-0362112, OFFICIAL RECORDS REFERENCE IS MADE TO SAID DOCUMENT FOR FULL PARTICULARS. 13, EASEMENTS FOR THE PURPOSE SHOWN BELOW AND RIGHTS INCIDENTAL THERETO AS SHOWN OR AS OFFERED FOR DEDICATION ON THE RECORDED MAP SHOWN BELOW, MAP OF: 14636 EASEMENT PURPOSE: DRAINAGE AFFECTS: LOT 29 AS SHOWN ON SAID MAP EASEMENT PURPOSE: OPEN SPACE AFFECTS: LOTS 22 AND 29 EASEMENT PURPOSE: FAILSAFE OVERFLOW AREA AFFECTS: LOTS 11 AND 29 14. A DOCUMENT ENTITLED "HOLD HARMLESS AGREEMENT GEOLOGICAL FAILURE", DATED APRIL 22, 2003 EXECUTED BY KEYSTONE CARLSBAD 28 LLC, A CALIFORNIA LIMITED LIABILITY COMPANY AND THE CITY OF CARLSBAD, SUBJECT TO ALL THE TERMS, PROVISIONS AND CONDITIONS THEREIN CONTAINED, RECORDED SEPTEMBER 8, 2003 AS FILE NO. 2003-1095578 OF OFFICIAL RECORDS. 15. A DOCUMENT ENTITLED "HOLD HARMLESS AGREEMENT", DATED APRIL 22, 2003 EXECUTED BY KEYSTONE CARLSBAD 28 LLC, A CALIFORNIA LIMITED LIABILITY COMPANY AND THE CITY OF CARLSBAD, SUBJECT TO ALL THE TERMS, PROVISIONS AND CONDITIONS THEREIN CONTAINED, RECORDED SEPTEMBER 8, 2003 AS FILE NO. 2003-1095579 OF OFFICIAL RECORDS. 16. INTENTIONALLY OMITTED. 17, COVENANTS, CONDITIONS AND RESTRICTIONS (BUT OMITTING THEREFROM ANY COVENANT OR RESTRICTION BASED ON RACE, COLOR, RELIGION, SEX, HANDICAP, FAMILIAL STATUS OR NATIONAL ORIGIN, IF ANY, UNLESS AND ONLY TO THE EXTENT THAT SAID COVENANT {A) IS EXEMPT UNDER CHAPTER 42, SECTION 3607 OF THE UNITED STATES CODE OR (B) RELATES TO HANDICAP BUT DOES NOT DISCRIMINATE AGAINST HANDICAPPED PERSONS) AS SET FORTH IN THE DOCUMENT. RECORDED: FEBRUARY 13, 2004, AS DOCUMENT NO. 2004-0116749, OFFICIAL RECORDS PREUM8C.il/23/e3tiK SCHEDULE B * (continued) Order No: 53040766 U50 YourRef: CONSERVATION LAND NOTE: IF YOU SHOULD REQUEST A COPY OF THE DOCUMENT REFERRED TO ABOVE, THE CALIFORNIA GOVERNMENT CODE SECTION 12956.1 REQUIRES THAT A COUNTY RECORDER, TITLE INSURANCE COMPANY, ESCROW COMPANY, REAL ESTATE BROKER, REAL ESTATE AGENT, OR ASSOCIATION THAT PROVIDES A COPY OF A DECLARATION, GOVERNING DOCUMENT, OR DEED TO ANY PERSON SHALL PLACE A COVER PAGE OR STAMP ON THE FIRST PAGE OF THE PREVIOUSLY RECORDED DOCUMENT OR DOCUMENTS STATING, IN AT LEAST 14-POINT BOLDFACE TYPE, THE FOLLOWING: IF THIS DOCUMENT CONTAINS ANY RESTRICTION BASED ON HACK, COLOR, RELIGION, SEX, FAMILIAL STATUS, MARITAL STATUS, DISABILITY, NATIONAL ORIGIN, OR ANCESTRY, THAT RESTRICTION VIOLATES STATE AND FEDERAL FAIR HOUSING LAWS AND IS VOID, AND MAY BE REMOVED PURSUANT TO SECTION 12956.1 OF THE GOVERNMENT CODE. LAWFUL RESTRICTIONS UNDER STATE AND FEDERAL LAW ON THE AGE OF OCCUPANTS IN SENIOR HOUSING OR HOUSING FOR OLDER PERSONS SHALL NOT BE CONSTRUED AS RESTRICTIONS BASED ON FAMILIAL STATUS. SAID COVENANTS, CONDITIONS AND RESTRICTIONS PROVIDE THAT A VIOLATION THEREOF SHALL NOT DEFEAT THE LIEN OF ANY MORTGAGE OR DEED OF TRUST MADE IN GOOD FAITH AND FOR VALUE. SAID INSTRUMENT ALSO PROVIDES FOR THE LEVY OF ASSESSMENTS, THE LIEN OF WHICH IS STATED TO BE SUBORDINATE TO THE LIEN OF CERTAIN MORTGAGES OR DEEDS OF TRUST MADE IN GOOD FAITH AND FOR VALUE. THE PROVISIONS OF SAID COVENANTS, CONDITIONS AND RESTRICTIONS WERE EXTENDED TO INCLUDE THE HEREIN DESCRIBED LAND BY AN INSTRUMENT RECORDED: MARCH 11, 2004, AS DOCUMENT NO. 2004-0202116, OFFICIAL RECORDS AFFECT LOTS 2 THROUGH 19, INCLUSIVE, 23, 24, 25, 29 AND 30 MODIFICATION^) OF SAID COVENANTS, CONDITIONS AND RESTRICTIONS RECORDED: APRIL 28, 2005 AS FILE NO. 05-354600 OF OFFICIAL RECORDS 18. AN IRREVOCABLE OFFER TO DEDICATE A PORTION OF SAID LAND FOR THE PURPOSES STATED HEREIN IN FAVOR OF: CITY OF CARLSBAD FOR: CONSERVATION lAND RECORDED: JUNE 20, 2005 AS FILE NO. 05-513388 OF OFFICIAL RECORDS AFFECTS: THE ROUTE THEREOF AFFECTS A PORTION OF SAID LAND AND IS MORE FULLY DESCRIBED IN SAID DOCUMENT. ifCl IMBC-»/23 /93b* SCHEDULE BPase 5 (continued) Order No: 53040766 U50 Your Rcf: CONSERVATION LAND / 19. A DOCUMENT ENTITLED "MEMORANDUM OP AGREEMENT", DATED JUNE 15, 2005 EXECUTED BY KEYSTONE CARLSBAD 28 LLC, A CALIFORNIA LIMITED LIABILITY COMPANY AND CITY OF CARLSBAD, A MUNICIPAL CORPORATION, SUBJECT TO ALL THE TERMS, PROVISIONS AND CONDITIONS THEREIN CONTAINED, RECORDED JULY 25, 2005 AS FILE NO. 05-0624267 OF OFFICIAL RECORDS. AA 20. RIGHTS OF PARTIES IN POSSESSION OF SAID LAND. MATTERS AFFECTING THE RIGHTS OF SAID PARTIES ARE NOT SHOWN HEREIN. AB 21. MATTERS WHICH MAY BE DISCLOSED BY AN INSPECTION OR SURVEY OF SAID LAND OR BY INQUIRY OF THE PARTIES IN POSSESSION THEREOF. AC END OF SCHEDULE B AB NOTE NO. 1: YOUR OPEN ORDER REQUEST INDICATES THAT A LIMITED LIABILITY COMPANY WILL BE ACQUIRING, ENCUMBERING OR CONVEYING REAL PROPERTY IN YOUR TRANSACTION. UNDER THE PROVISIONS OF "THE CALIFORNIA LIMITED LIABILITY ACT, EFFECTIVE SEPTEMBER 30, 1994" THE FOLLOWING WILL BE REQUIRED: 1. A COPY OF THE ARTICLES OF ORGANIZATION (AND ALL AMENDMENTS, IF ANY) THAT HAS BEEN FILED WITH THE SECRETARY OP STATE. 2 . THE REQUIREMENT THAT THIS COMPANY BE PROVIDED WITH A COPY OF THE OPERATING AGREEMENT. THE COPY PROVIDED MUST BE CERTIFIED BY THE APPROPRIATE MANAGER OR MEMBER THAT IT IS A COPY OF THE CURRENT OPERATING AGREEMENT. 3. IF THE LIMITED LIABILITY COMPANY IS MEMBER-MANAGED THEN THIS COMPANY MUST BE PROVIDED WITH A CURRENT LIST OF THE MEMBER NAMES. KEYSTONE CARLSBAD 28 LLC, A CALIFORNIA LIMITED LIABILITY COMPANY AE- NOTE NO. 2: INTENTIONALLY OMITTED AF NOTE NO. 3: PROPERTY TAXES FOR THE FISCAL YEAR SHOWN BELOW ARE PAID. FOR INFORMATION PURPOSES THE AMOUNTS ARE: FISCAL YEAR: 2004-2005 1ST INSTALLMENT: $282.64 2ND INSTALLMENT: $282.64 EXEMPTION: $NONE CODE AREA: 09158 ASSESSMENT NO: 215-083-09 GP 1AMEND/JRS CHICAGO TITLE INSURANCE COMPANY Fidelity National Financial Group of Companies' Privacy Statement July 1,2001 We recognize and respect the privacy expectation of today's consumers and the requirements of applicable federal and state privacy laws. We believe that making you aware of how we use your non-public personal information ("Personal Information"), and to whom it is disclosed, will form the basis for a relationship of trust between us and the public that we serve. This Privacy Statement provides that explanation. We reserve the right to change this Privacy Statement from time to time consistent with applicable privacy laws. In the course of our business, we may collect Personal Information about you from the following sources: * From applications or other forms we receive from you or your authorized representative; * From your transactions with, or from the services being performed by, us, our affiliates, or others; * From our internet web sites; * From the public records maintained by governmental entities that we either obtain directly from those entities, or from our affiliates or others; and * From consumer or other reporting agencies. Our Policies Regarding The Protection Of The Confidentiality And Security Of Your Personal Information We maintain physical, electronic and procedural safeguards to protect your Personal Information from unauthorized access or intrusion. We limit access to the Personal Information only to those employees who need such access in connection with providing products or services to you or for other legitimate business purposes. Our Policies and Practices Regarding the Sharing of Your Personal Information We may share your Personal Information with our affiliates, such as insurance companies, agents, and other real estate settlement service providers. We may also disclose your Personal Information: * to agents, brokers or representatives to provide you with services you have requested; * to third-party contractors or service providers who provide services or perform marketing or other functions on our behalf; and * to others with whom we enter into joint marketing agreements for products or services that we believe you may find of interest. In addition, we will disclose your Personal Information when you direct or give us permission, when we are required by law to do so, or when we suspect fraudulent or criminal activities. We also may disclose your Personal Information when otherwise permitted by applicable privacy laws such as, for example, when disclosure is needed to enforce our rights arising out of any agreement, transaction or relationship with you. One of the important responsibilities of some of our affiliated companies is to record documents in the public domain. Such documents may contain your Personal Information. Right To Access Your Personal Information And Ability To Correct Errors Or Request Change Or Deletion Certain states afford you the right to access your Personal Information and, under certain circumstances, to find out to whom your Personal Information has been disclosed. Also, certain states afford you the right to request correction, amendment or deletion of your Personal Information. We reserve the right, where permitted by law, to charge a reasonable fee to cover the costs incurred in responding to such requests. Alt requests must be made in writing to the following address: Privacy Compliance Officer Fidelity National Financial, Inc. 601 Riverside Drive Jacksonville, FL 32204 Multiple Products or Services: If we provide you with more than one financial product or service, you may receive more than one privacy notice from us. We apologize for any inconvenience this may cause you. PFWACYT- IQf CHICAGO TITLE COMPANY Supplemental Report issuing Office: 2365 NORTHSIDE DR. 8500 SAN DIEGO, CA 92108 JOHNNA UNGER KEYSTONE COMMUNITIES 5333 MISSION CENTER RD., STE. 360 SAN DIEGO, CALIFORNIA 92108 YourRef: CONSERVATION LAND Order No: 53040766 O50 Dated as of OCTOBER 31 ^f. 005 7:30 AM Title Officer: Tom Votel / Ken Cyr The above numbered report dated SEPTEMBER 26, 2005 (including any supplements or amendments thereto) is hereby modified and/or supplemented in order to reflect the following: PLEASE AMEND/MODIFY ITEM NO. 13 TO READ AS FOLLOWS: EASEMENTS FOR THE PURPOSE SHOWN BELOW AND RIGHTS INCIDENTAL THERETO AS SHOWN OR AS OFFERED FOR DEDICATION ON THE RECORDED MAP SHOWN BELOW. MAP OF: EASEMENT PURPOSE: AFFECTS: 14636 OPEN SPACE LOT 29 SUPPCS- 1O/2Z/83AA EXHIBIT "D1 \ EXISTING 1.0.0. PER DOCUMENT RECORDED JUNE 20. ZOOS AS FILE NO. 2005-0513383. O.K. LOT 29 EXISTING OPEN SPACE EASEMENT TO THE CfTT or CARLSBAD OVER ALL OF LOT 29 PER MAP NO. 14636 TREE 7WMWWC RIGHTS PER DOCUMENT RECORDED 7-21-54 IN BOOK 5307, PASE 311. O.K. I" " "" 1 INDICATES CONSERVATION •L - - J" EASEMENT- HUNSAKER& ASSOCIATES SAN 0>!CO, IMC FIANNINC WOT HunKktra SL Suit* }CO ENONEEIUNC Sin 0«io. O 97121 SUKVWNC Ft \OOQ6\iMAP\EP Exhibit D SHT 01.0KG[2167]Nov-17-2005: 12:00 l-i * CERTIFICATION FOR ACCEPTANCE OF DEED This is to certify that the interest in real property conveyed by the GRANT DEED OF EASEMENT dated February 15. 2006. from Keystone Carlsbad 28 LLC. to the City of Carlsbad, California, a municipal corporation, is hereby accepted by the City Council of the City of Carlsbad, California, pursuant to Ordinance No. NS-422, adopted on September 16, 1997, and the grantee consents to the recordation thereof by its duly authorized officer. DATED: February 17. 2006