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HomeMy WebLinkAboutCalavera Hills II LLC; 2002-10-08;OPTION AGREEMENT THIS OPTION AGREEMENT is made on October 8,2002, at Carlsbad, California, by and among CALAVERA HILLS I1 LLC, a California limited liability company (“Seller”), the CITY OF CARLSBAD, a municipal corporation (“Buyer”), and the RANCHO CARLSBAD OWNERS ASSOCIATION INC., a California corporation (“Beneficiary”). REClTALS A. Propertv. Seller is the owner of approximately 5.7 acres of real property, including all improvements located thereon, in the City of Carlsbad, in San Diego County, California, identified more particularly on Exhibit A hereto and described in the Purchase Agreement and Escrow Instructions attached hereto as Exhibits B and C (the “Property”). B. Pumose. Buyer desires to acquire the exclusive right to purchase the Property, under specified terms and conditions, without becoming obligated to purchase it. Should Buyer choose not to purchase the Property, Beneficiary desires the exclusive right to purchase the Property, under specified terms and conditions, without becoming obligated to purchase it. The Property is intended to be used to provide a relocation site for Beneficiary’s community garden, RV Parking Lot (which includes, without limitation, parlung for boats, cars, jet skis, RVs, hay wagons and other personal items), wash area and waste disposal area, subject to any applicable governmental approvals (collectively referred to herein as the “Intended Uses”), that will either be replaced by or have the access severed by the construction of Reach A of College Boulevard and/or installation of Detention Basin “BJ” as part of the Bridge & Thoroughfare District No. 4 and Detention Basins Project, all of which was analyzed in Final EIR No. 98-02 (SCH No. 991 11082),’ along with and including the Calavera Hills Master Plan Phase I1 (collectively referred to herein as the “Project”). Buyer and Beneficiary each specifically agree that if either of them exercises the option to purchase the Property, they will do so solely for the purpose of using the Property for the Intended Uses. C. m. This Agreement is not intended to provide any rights to Buyer or Beneficiary with respect to the Property or future entitlements for the Robertson Ranch, except as expressly set forth in this Agreement. AGREEMENT NOW, THEREFORE, the parties agree as follows: 1. Grant of Option to Buver. Seller hereby grants to Buyer the exclusive right to purchase the Property (“Buyer’s Option”) during the term of Buyer’s Option set forth in Section 3 below, at the price to be determined pursuant to Section 8 below, and according to I City Council Resolution No. 2002-016, dated January 15,2002. other terms and conditions to be set forth in a Purchase Agreement and Escrow Instructions (“Purchase Agreement”), a proposed but non-binding draft of which is attached hereto as Exhibit B. Nothing in this Agreement is intended to effect the City’s ability to acquire some or all of the Property through its power of eminent domain. 2. Grant of Option to Beneficiary. Should Buyer not exercise Buyer’s Option, Seller grants to Beneficiary the exclusive right to purchase the Property (“Beneficiary’s Option”) during the term of Beneficiary’s Option set forth in Section 4 below, at the price to be determined pursuant to Section 10 below, and according to the terms and conditions set forth in the Purchase Agreement and Escrow Instructions (“Purchase Agreement”) attached hereto as Exhibit C (or as modified in accordance with Section 16 below). 3. Term of Buyer’s Option. The term of Buyer’s Option shall begin upon date of this Agreement and end on January 1,2009. However, if Buyer provides notice of intent to exercise Buyer’s Option in accordance with Section 8 below, and the parties either fail to agree on a purchase price pursuant to Section 8.2 or Buyer fails to exercise Buyer’s Option pursuant to Section 9, then Buyer’s Option shall terminate as provided in Section 8.2 or Section 9.3, as applicable, or upon January 1,2009, whichever is sooner. Notwithstanding the foregoing, if at any time prior to January 1,2009, Buyer determines that it does not intend to exercise Buyer’s Option, Buyer shall send a written notice to Seller and Beneficiary (the “Option Termination Notice”) stating that Buyer does not intend to exercise its option. In such case, Buyer’s Option shall terminate upon the date of the Option Termination Notice. If Buyer fails to provide Option Termination Notice or notice of intent to exercise Buyer’s Option in accordance with Section 8 below by January 1,2008, Buyer’s Option shall terminate on January 1,2008. 4. Term of Beneficiarv’s Option. If the Option Termination Notice is provided prior to January 1,2008, then the term of Beneficiary’s Option shall begin on the date of the Option Termination Notice and end on January 1,2010. If Buyer fails to send an Option Termination Notice and fails to send notice of intent to exercise Buyer’s Option by January 1, 2008, then the term of Beneficiary’s Option shall begin on January 2,2008 and end on January 1, 2010. If Buyer provides notice of intent to exercise Buyer’s Option in accordance with Section 8 below, but fails to exercise Buyer’s Option pursuant to Section 9, then the term of Beneficiary’s Option shall begin the day after Buyer’s Option terminates and shall terminate on January 1,2010. If Beneficiary provides notice of intent to exercise Beneficiary’s Option as provided in Section 10 below, but fails to exercise Beneficiary’s Option as provided in Section 11, Beneficiary’s Option shall terminate as provided in Section 11.3 or upon expiration of the term of Beneficiary’s Option as defined herein, whichever is sooner. 5. Consideration for Options. The Buyer’s Option and the Beneficiary’s Option are granted in consideration of Beneficiary’s agreement to withdraw its opposition to and to support approval of the Project before the City of Carlsbad and/or any other public entity. 6. Cooperation Regarding Robertson Ranch. Beneficiary agrees that if, at any time prior to finalization of the permits and entitlements for the Robertson Ranch, any agency requests or requires the signature of Beneficiary for the processing of any such permits n L SD-DOCSU04222.12 and entitlements, Beneficiary will timely provide such signature as is requested or required. In addition, should Seller apply to move the Property which is currently located within Local Facilities Management Zone (“LFMZ) 14 to LFMZ 15, Beneficiary agrees to support such action. Nothing herein shall preclude the Buyer or Beneficiary from exercising their rights of enforcement of the Conditions of Approval for the Project, set forth on Exhibit D hereto. In the event there is a conflict between the provisions of this Agreement and such conditions, the conditions of approval shall control. 7. Right of Entrv. Seller agrees to permit Buyer, Beneficiary and their respective agents to enter upon the Property, subject to the rights of any tenants, at reasonable times after at least five (5) days advance notice to Seller to make such surveys, inspections and tests as may reasonably be necessary in connection with its examination of the Property for purposes of this Agreement during the term of this option. Buyer hereby agrees to repair any damage or disturbance it or its agents may cause to the Property, and further agrees to indemnify, defend and hold Seller harmless from and against any and all claims, losses, damages and expenses, including reasonable attorneys’ fees, asserted against or suffered by Seller as a result of Buyer’s or its agents’ entry upon or acts upon the Property for purposes of this Agreement. Beneficiary hereby agrees to repair any damage or disturbance it or its agents may cause to the Property, and further agrees to indemnify, defend and hold Seller harmless from and against any and all claims, losses, damages and expenses, including reasonable attorneys’ fees, asserted against or suffered by Seller as a result of Beneficiary’s or its agents’ entry upon or acts upon the Property for purposes of this Agreement. In addition, Buyer and Beneficiary shall each maintain in full force and effect a comprehensive general liability insurance policy from an insurer licensed to do business in the State of California having a general policy holders’ rating of “A” or better and a financial size rating of Class XII or better in the most recent edition of Best’s Guide to Insurance Companies. Each policy shall afford minimum coverage of $1,000,000 per occurrence and $2,000,000 aggregate, include broad form contractual liability coverage, name Seller as an additional insured, be primary and non-contributing with any insurance Seller may have, contain a waiver of subrogation rights against Seller, and contain a provision that it will not be modified or terminated without at least ten days’ advance written notice to Seller. Seller acknowledges that Buyer is self-insured for general liability and that such insurance is sufficient for purposes of this Section. 8. Notice of Intent To Exercise Buver’s Option. 8.1 Notice. Buyer shall give Seller and Beneficiary written notice of its non-binding intent to exercise Buyer’s Option not more than fifteen (15) months and not less than twelve (12) months prior to its exercise of Buyer’s Option. Such notice of intent triggers the purchase price determinatiodpurchase agreement process set forth in Section 8.2 below, 8.2 Determination of Buver’s Purchase Price And Terms Of Purchase Agreement. Within sixty (60) days after receiving notification from Buyer of its intention to exercise Buyer’s Option, Seller shall provide Buyer with an initial appraisal of the fair market value of the Property and Seller’s proposed purchase price for the Property, such price to be not more than what Seller believes to be the fair market value of the Property as of the date of the 3 SD-DOCSUM222.12 notice of intent to exercise Buyer’s Option. If Buyer in good faith, disagrees with or otherwise disputes Seller’s determination of the proposed purchase price for the Property, it shall so notify Seller, in writing, within thirty (30) days after receiving Seller’s proposed purchase price. Thereafter, the parties shall seek to settle the dispute by way of good faith negotiations to be concluded within ninety (90) days after the date of Buyer’s notice of disagreement with the proposed purchase price. During this time, the parties shall also negotiate the terms of the Purchase Agreement, a proposed, non-binding draft of which is attached hereto as Exhibit B, to be used should Buyer decide to exercise Buyer’s Option and purchase the Property. If, after such good faith negotiations, the parties are still not able or willing to agree upon the purchase price for the Property or the terms of the Purchase Agreement, Buyer’s Option shall terminate and Buyer shall provide Option Termination Notice to Seller and Beneficiary. 8.3 Condition of Title. Within forty-five (45) days after receiving the written notice provided for in Section 8.1 above, Seller shall deliver to Buyer (i) a current preliminary title report with respect to the Property (“Preliminary Title Report”), (ii) copies of the documents referred to therein as exceptions, and (iii) at Buyer’s sole cost and expense, an ALTA survey of the Property ( “Survey”). Within thirty (30) days after Buyer’s receipt of the Preliminary Title Report, exceptions and Survey, Buyer shall provide Seller with a written notice designating those exceptions reported in the Preliminary Title Report andor other items shown on the Survey that Buyer disapproves, if any. If Buyer disapproves of any item described in the Preliminary Title Report or shown on the Survey, Seller shall have fifteen (15) days in which to notify Buyer whether Seller elects to eliminate any item disapproved. Seller shall have no obligation to eliminate any item disapproved by Buyer. If Buyer’s Option is exercised, title to the Property shall be conveyed by Seller to Buyer in accordance with the requirements of the Purchase Agreement negotiated pursuant to Section 8.2 above. 9. Exercise of Option bv Buyer. Buyer may exercise Buyer’s Option during the term of Buyer’s Option, provided it has provided notice of intent in accordance with Section 8.1 above, by: 9.1 Within thirty (30) days after the purchase price for the Property and terms of the Purchase Agreement have been agreed upon pursuant to Section 8.2 above, delivery of written notice to Seller that Buyer’s staff will recommend that Buyer exercise Buyer’s Option at the purchase price agreed upon and according to the terms of the Purchase Agreement, and that the administrative approval process has been initiated. 9.1.1 Within 120 days of the written notice provided pursuant to Section 8.1 above, Buyer’s delivery of written notice to Seller stating that Buyer’s Option is exercised without condition or qualification. This 120-day period may be extended by mutual written agreement of Seller and Buyer for a period not to exceed thirty (30) days. Said notice shall be accompanied by three (3) copies of the Purchase Agreement negotiated pursuant to Section 8.2 above, each of which shall have been originally executed by Buyer. 9.2 Upon receipt thereof during the term of Buyer’s Option, Seller shall forthwith originally execute each of the three (3) copies of the Purchase Agreement, and 4 SD-DOCSUO4222.12 shall deliver one (1) copy so executed to Buyer, and one (1) copy so executed to the escrow holder. Seller and Buyer shall thereafter additionally execute, acknowledge and deliver any and all other documents necessary or appropriate to carry out the terms and conditions of the Purchase Agreement. 9.3 If Buyer’s Option is not exercised within the time frames provided for herein, Buyer’s Option shall terminate and Buyer shall provide Option Termination Notice to Seller and Beneficiary. 10. Notice of Intent to Exercise Beneficiarv’s Oution. 10.1 Notice. Beneficiary shall give Seller written notice of Beneficiary’s non-binding intent to exercise Beneficiary’s Option not more than twelve (12) months and not less than nine (9) months prior to its exercise of Beneficiary’s Option. Beneficiary’s notice of intent shall trigger the determination of the purchase price, as set forth in Section 10.3 below. 10.2 Condition of Title. Within forty-five (45) days after receiving Beneficiary’s notice of intent, Seller shall deliver to Beneficiary (i) a current preliminary title report with respect to the Property (“Preliminary Title Report”), (ii) copies of the documents referred to therein as exceptions, and (iii) at Beneficiary’s sole cost and expense, an ALTA survey of the Property ( “Survey”). Within thirty (30) days after Beneficiary’s receipt of the Preliminary Title Report, exceptions and Survey, Beneficiary shall provide Seller with a written notice designating those exceptions reported in the Preliminary Title Report and/or other items shown on the Survey that Beneficiary disapproves, if any. If Beneficiary disapproves of any item described in the Preliminary Title Report or the Survey, Seller shall have thirty (30) days in which to notify Beneficiary whether Seller elects to eliminate any item disapproved. Seller shall have no obligation to eliminate any item disapproved by Beneficiary. If Beneficiary’s Option is exercised, title to the Property shall be conveyed by Seller to Beneficiary in accordance with the requirements of Exhibit C (or as modified in accordance with Section 16 below). 10.3 Determination of Purchase Price. Within sixty (60) days after receiving notification from Beneficiary of its intention to exercise Beneficiary’s Option, Seller shall provide Beneficiary with an initial appraisal of the fair market value of the Property and Seller’s proposed purchase price for the Property, such price to be not more than what Seller believes to be the fair market value of the Property as of the date of the notice of intent to exercise Beneficiary’s Option. If an initial appraisal has been prepared for the Property in accordance with Section 8.2 above within the six (6) months preceding Beneficiary’s notice of intent, this appraisal shall be used as the initial appraisal. If an initial appraisal has been prepared for the Property in accordance with Section 8.2 above more than six (6) months preceding Beneficiary’s notice of intent, Seller may, at its sole discretion, utilize that appraisal as the initial appraisal. If Beneficiary, in good faith, disagrees with or otherwise disputes Seller’s determination of the proposed purchase price for the Property, it shall so notify Seller, in writing, within thirty (30) days after receiving Seller’s proposed purchase price. Thereafter, the parties shall seek to settle the dispute by way of good faith negotiations to be concluded within thirty 5 SDPOCSU04222.12 (30) days after the date of Beneficiary’s notice of disagreement with the proposed purchase price. If, after such good faith negotiations, the parties are still not able or willing to agree upon the purchase price for the Property, then the matter shall be settled in accordance with the following procedures: 10.3.1 Within sixty (60) days of the conclusion of the negotiations provided for above, Beneficiary shall have a second appraisal of the fair market value of the Property prepared and shall provide that second appraisal and Beneficiary’s proposed purchase price for the Property to Seller. The cost of the second appraisal shall be paid solely by Beneficiary. 10.3.2 If Seller, in good faith, disagrees with or otherwise disputes Beneficiary’s determination of the proposed purchase price for the Property, it shall so notify Beneficiary, in writing, within fifteen (15) days after receiving Beneficiary’s proposed purchase price. Thereafter, the parties shall seek to settle the dispute by way of good faith negotiations to be concluded within thirty (30) days after the date Seller provides notice of its disagreement with the proposed purchase price. 10.3.3 If, after such good faith negotiations, the parties are still not able or willing to agree upon the purchase price for the Property, the two appraisers who prepared the initial and second appraisals shall designate a third appraiser to appraise the Property. If the two appraisers cannot agree on the third appraiser within five (5) business days of being requested to designate the third appraiser, then the matter shall be referred to the American Arbitration Association (“AAA”), which will choose the third appraiser. The decision of the AAA selecting the third appraiser shall be final. The parties shall share equally the costs of the AAA, if any, and the third appraiser. 10.3.4 After soliciting, accepting and reviewing such information and documentation as he or she may deem necessary and appropriate, including that submitted by either party, the third appraiser shall arrive at, within thirty (30) days after appointment, a statement of what he or she considers the fair market value of the Property to be as of the date of the notification of intent to exercise Beneficiary’s Option, and provide that statement to Seller and Beneficiary. Then the two (2) closest appraised figures for the fair market value of the Property shall be averaged (with the third not utilized), and the amount so calculated shall be the purchase price applicable to the exercise of Beneficiary’s Option. However, if the three appraised figures of fair market value are in exactly equal increments (for example, 100, 110, 120). then the middle figure shall be utilized as the purchase price applicable to the exercise of Beneficiary’s Option. 11. Exercise of Option bv Beneficiary. 11.1 Beneficiary may exercise Beneficiary’s Option, during the term of Beneficiary’s Option, provided Beneficiary has provided notice of intent in accordance with Section 10.1 above, by: 6 11.1.1 Within sixty (60) days after the purchase price for the Property has been agreed upon or determined pursuant to Section 10.3 above, Beneficiary’s delivery of written notice to Seller stating that Beneficiary’s Option is exercised without condition or qualification. Said notice shall be accompanied by three (3) copies of Exhibit C (or as modified in accordance with Section 16 below), each of which shall have been completed by Beneficiary as provided in Section 11.2 below and then originally executed by Beneficiary. 11.2 To complete each of the copies of Exhibit C, Beneficiary shall: 11.2.1 Insert the date of Beneficiary’s exercise of Beneficiary’s Option as the “Date of this Agreement” in paragraph 1.1 thereof; 11.2.2 Insert the name of the Escrow Agent in paragraph 1.3 thereof; 11.2.3 Insert the total purchase price, as determined according to Section 10.3 of this Agreement, in paragraph 1.5 thereof and the balance of the total purchase price in paragraph 1.7 thereof; 11.2.4 Insert applicable notice information for the Buyer and Escrow Agent in paragraphs 1.9 and 1.11 thereof; 11.2.5 Insert the date and order number of the Survey delivered pursuant to Section 10.2 of this Agreement in paragraph 6.1.3 thereof; 11.2.6 Insert the date and order number of the Preliminary Title Report delivered pursuant to Section 10.2 of this Agreement in paragraph 6.1.3 thereof; and 11.2.7 Insert those exceptions reported in the Preliminary Title Report or the Survey which, pursuant to Section 10.2 of this Agreement, (a) Beneficiary has disapproved, and (b) Seller has agreed to eliminate, in paragraph 6.1.3 thereof. Upon receipt thereof, Seller shall forthwith insert applicable notice information for Seller in paragraph 1.10 thereof, originally execute each of the three (3) copies of Exhibit C, and shall deliver one (1) copy so executed to Beneficiary, and one (1) copy so executed to the escrow holder. Seller and Beneficiary shall thereafter additionally execute, acknowledge and deliver any and all other documents necessary or appropriate to carry out the terms and conditions of Exhibit C. 11.3 If Beneficiary’s Option is not exercised within the time frames provided for herein, Beneficiary’s Option shall terminate. 12. Fair Market Value/Auuraisals. Fair market value is defined for purposes of this Agreement as provided in California Code of Civil Procedure section 1263.320, as amended from time to time. All appraisals provided for under this Agreement shall be prepared by an M.A.I. appraiser experienced in appraising undeveloped land. The Robertson’s Ranch 7 SD_DOCSU04222.12 house (defined in Section 16 below) located on the Property shall not be included in any valuation of the Property. 13. Extension of Time Periods. Notwithstanding Section 14 below and except as otherwise provided herein, any time period provided in this Agreement may be extended by the mutual written agreement of all the parties to this Agreement. 14. Automatic Termination. 14.1 w. If Buyer fails to exercise Buyer’s Option in accordance with the time frames specified in this Agreement, Buyer’s Option and the rights of Buyer shall automatically and immediately terminate without notice. Thereafter, Buyer agrees that it will execute, acknowledge and deliver to Seller, within ten (10) days from request therefore, a quitclaim deed or any other document reasonably requested by Seller or a title insurance company to verify the termination of the option. 14.2 Beneficiary. If Beneficiary fails to exercise Beneficiary’s Option in accordance with the time frames specified in this Agreement, Beneficiary’s Option and the rights of Beneficiary shall automatically and immediately terminate without notice. Thereafter, Beneficiary agrees that it will execute, acknowledge and deliver to Seller, within ten (10) days from request therefore, a quitclaim deed or any other document reasonably requested by Seller or a title insurance company to verify the termination of the option. 14.3 Due to Denial of Permit. If either Buyer or Beneficiary are denied by any approving governmental agency a requested permit necessary for use of the Property for the Intended Uses, and the denial becomes final after exhaustion of administrative and judicial remedies, then both Buyer’s Option and Beneficiary’s Option shall automatically terminate. Thereafter, Buyer and Beneficiary agree that they will each execute, acknowledge and deliver to Seller, within ten (10) days from request therefore, a quitclaim deed or any other document reasonably requested by Seller or a title insurance company to verify the termination of the options. 15. Reauest for Termination Bv Seller. Prior to the expiration of this Agreement, Seller may submit to Buyer andor Beneficiary, as applicable, a written request that Buyer’s Option andor Beneficiary’s Option, as applicable, be terminated. Within 30 days of receipt of such written request, Buyer andor Beneficiary, as applicable, shall respond in writing with either an Option Termination Notice, or a statement that Buyer andor Beneficiary, as applicable, do not wish to terminate the option and an explanation of the reason(s) therefore. If Buyer’s Option andor Beneficiary’s Option are terminated as a result hereof, thereafter, Buyer andor Beneficiary, as applicable, agree that they will execute, acknowledge and deliver to Seller, within ten (10) days from request therefore, a quitclaim deed or any other document reasonably requested by Seller or a title insurance company to verify the termination of the options. 16. Robertson’s Ranch House. The parties acknowledge that located on the Property is a single family home once belonging to the Robertson family (the “Robertson’s 8 SD_DOCSU04222.12 Ranch House”). If either Buyer’s Option or Beneficiary’s Option is exercised, Seller intends to transfer ownership of the Robertson’s Ranch House to Beneficiary at no cost (assuming the house is still located on the Property at the time the option is exercised). 16.1 Because Buyer does not wish to take title to the Robertson’s Ranch House if it exercises Buyer’s Option, if Buyer exercises Buyer’s Option, Seller shall retain title to the Robertson’s Ranch House (rather than transfer it with the Property) and (a) Seller, on the one hand, and Buyer on the other, will enter into a commercially reasonable lease agreement, leasing to Seller, at no cost (or at the lowest cost permitted by law), the land on which the Robertson’s Ranch House sits together with an amount of land sufficient to meet City requirements surrounding the Robertson’s Ranch House, for a period of time equal to the amount of time Buyer retains ownership of the Property, and (b) Buyer will provide Seller, at Closing, with an appropriate easement at no cost to Seller (or at the lowest cost permitted by law) for pedestrian, vehicular and utility access to the Robertson’s Ranch House across a portion of the Property, for the duration of the lease referred to herein, pursuant to a commercially reasonable easement document, and such easement shall be subject only to those liens, encumbrances and similar matters as are shown on the Preliminary Title Report or added by any public agency approving entitlements for use of the Property, and shall include appropriate indemnification for Buyer from liability arising out of use of such easement. Seller will then transfer ownership of the Robertson’s Ranch House to Beneficiary, at no cost (assuming the house is still on the Property), in a separate transaction and Beneficiary agrees to accept such transfer. 16.2 If Beneficiary exercises Beneficiary’s Option, Seller shall transfer ownership of the Robertson’s Ranch House to Beneficiary at no cost (assuming the house is still on the Property at the time the Beneficiary’s Option is exercised), as provided in the Purchase Agreement attached hereto as Exhibit C. 16.3 The parties agree that prior to transfer of the Robertson’s Ranch House, Seller retains all rights with respect to the house including, but not limited to, the right to remove the house from the Property, subject to any necessary governmental approvals. Seller shall have no obligation as a result of this Agreement to replace or repair the house (including without limitation the structure itself and any appliances or fixtures), or provide compensation to Beneficiary for the house (including without limitation the structure itself and any appliances or fixtures) should it be damaged or destroyed prior to the exercise of Buyer’s Option or Beneficiary’s Option. Beneficiary shall have the right to refuse to accept transfer of the Robertson’s Ranch House if it is significantly damaged or is not generally in the same condition as it is on the date of this Agreement, ordinary wear and tear excepted. Should Beneficiary believe that circumstances warrant its refusal to accept transfer of the Robertson Ranch House, it will provide Seller with written notice setting forth the reasons therefore at least thirty (30) days prior to the exercise of Beneficiary’s Option. Thereafter, Seller will either repair the house to its prior condition or remove the house, subject to any necessary governmental approvals. Should the Robertson’s Ranch House no longer exist on the Property at the time Beneficiary’s Option is exercised, the Purchase Agreement and Declaration of Restrictions attached hereto as Exhibit C shall be revised to delete reference to the Robertson’s Ranch House. Nothing in this paragraph is intended to give Beneficiary the right to refuse transfer of the Property from Buyer if Buyer 9 SD_DOCSU04222. I2 exercises Buyer’s Option and Beneficiary is not satisfied with the condition of the Robertson’s Ranch House. In such instance, Beneficiary will accept transfer of the Property with the Robertson’s Ranch House, subject to the lease and easements described in paragraph 16.1, and resolve any dispute over the transfer and condition of the Robertson’s Ranch House in accordance with this Section 16.3. 16.4 Prior to transfer of the Property, Seller agrees to remove any other structures located on the Property, other than the Robertson’s Ranch House, and to remove and remediate, as necessary and required by law, all underground storage tanks located on the Property. 16.5 If any agency, in connection with an approval related to the Robertson Ranch project, imposes a condition of approval and/or mitigation measure related to the Robertson’s Ranch House, Beneficiary agrees to cooperate with Seller in fulfillment of such condition and/or mitigation measure should performance of such condition and/or mitigation measure need to occur after transfer of the Robertson’s Ranch House to Beneficiary. The cost of fulfilling any such condition and/or mitigation measure shall be borne entirely by Seller. 17. Use of Property Prior To Exercise of Optiofluture Entitlements. 17.1 The parties understand and acknowledge that the Property is part of a larger parcel of land generally known as the Robertson Ranch. Among other things, in order to transfer the Property to Beneficiary, should Buyer choose not to purchase the Property and Beneficiary exercise its option to purchase the Property, Seller will need to process and obtain approval from Buyer of certain entitlements for Robertson Ranch, including but not limited to, a master plan, specific plan, re-zone, tentative map and/or tentative parcel map. In addition, it is possible that Buyer or Beneficiary will never exercise their respective options to purchase the Property. Accordingly, prior to the exercise of either Buyer’s Option or Beneficiary’s Option, Seller retains all rights with respect to the Property including, without limitation, the right to entitle, map, re-zone, encumber in any manner, and grade the Property, subject to any required governmental approvals. However, if Seller grades the Property, it agrees to: (i) salvage and replace the top two (2) feet of topsoil, (ii) use its best efforts to preserve the grove of eucalyptus trees on the Property, and (iii) not change the general topography of the Property in such a way as to make it unusable for the Intended Uses. Seller further agrees to provide Buyer (if not the approving agency) and Beneficiary with written notice of any entitlement, map, re-zoning, encumbrance or grading related to Robertson Ranch after final approval of the same. Seller further agrees to disclose the existence of this Agreement and the potential Intended Uses in any application or related documents submitted to any governmental agency for approval of any such entitlement, map, or re-zone for Robertson Ranch to the extent necessary or required by law for the processing of such approvals. However, nothing in this Agreement shall obligate Seller to seek or apply for any permit, entitlement or other authorization related to the Intended Uses. 17.2 The parties further understand and acknowledge that because the Property is intended to be used as a replacement and relocation site should either Buyer or Beneficiary exercise its option, and the timing of such usage depends upon the development of 10 SD-DOCSUO4222.12 College Boulevard Reach A, the Beneficiary hereunder may need to seek entitlements for the Property separate and apart from the Robertson Ranch entitlements. Accordingly, except as otherwise provided herein, Beneficiary shall have the right to apply to the appropriate governmental agencies for such entitlements as are necessary to use the Property for the Intended Uses, subject to Seller’s right to review and approve any and all such applications, and Seller’s right to approve any conditions or other requirements imposed by any approving agency in connection with approval of such applications. Seller agrees to cooperate with Beneficiary in the review and approval of such applications provided that such entitlements and processing (1) will have no adverse effect on the concurrent or future processing of entitlements for Robertson Ranch, (2) will not preclude any uses of Robertson Ranch, and (3) that Beneficiary and any applicable governmental agencies agree that any entitlement(s) granted for the Property, including but not limited to any zone change, permit, or other approval, separate and apart from the Robertson Ranch entitlements, are expressly conditioned upon the exercise of Buyer’s Option or Beneficiary’s Option and actual transfer of the Property to either Buyer or Beneficiary within the timeframes specified in this Agreement. Except for approvals from the City of Carlsbad to permit the Intended Uses, Beneficiary shall not accept or perfect any permit or entitlement for the Property unless and until actual transfer of the Property to either Buyer or Beneficiary. Beneficiary agrees not to assert any deadline provided by the Permit Streamlining Act, California Government Code sections 65920 et. seq., in connection with any of the permits, applications or entitlements for the Property referred to herein. At Seller’s election, it may process the entitlements that are necessary to use the Property for the Intended Uses. If Seller makes such election, it shall notify Beneficiary in writing at least thirty (30) days prior to submittal to any governmental agency of any application related to entitlements for the Intended Uses, provide Beneficiary with a copy of any such application and related documents, and work cooperatively with Beneficiary to accomplish the goal of obtaining conditional approval of the entitlements necessary to use the Property for the Intended Uses. 18. Assignment. Neither Buyer nor Beneficiary may assign their rights under this Agreement without Seller’s prior written consent, which Seller may grant or withhold in the exercise of its sole and absolute discretion. Notwithstanding the foregoing, upon reasonable notice to Seller, Buyer may assign its rights under this Agreement to a City of Carlsbad- controlled governmental entity which will provide funding for the construction of Reach A of College Boulevard and/or installation of Detention Basin “BJ,” and Beneficiary may assign its rights under this Agreement to any successor entity to Beneficiary or to a Section 501(C)(3) entity established by Beneficiary for purposes of holding all or some of the Property. In the event of such an assignment, neither Buyer nor Beneficiary shall be relieved of its obligations herein, and if an assignee of Buyer or Beneficiary exercises its corresponding Option, Buyer or Beneficiary, as the case may be, shall execute a guarantee of the Purchase Agreement that is acceptable to Seller. 19. Brokers and Finders. Each party represents and warrants to the others that it has not engaged or dealt with any broker or finder in connection with this Agreement or the transaction contemplated hereby, and agrees to defend, indemnify and hold the other parties harmless from all claims, losses, damages, costs and expenses, including reasonable attorneys’ fees, arising from or related to any assertion to the contrary by any such broker or finder. 11 SD-DOCSUO4222.12 20. Notices. Any notice to be given hereunder by any party to any other party shall be given in writing by personal delivery or by registered or certified mail, postage prepaid, return receipt requested, and shall be deemed communicated as of the date of personal delivery or three (3) days after the date of mailing. Mailed notices shall be addressed as set forth below, but each party may change the address set forth below by written notice to the other parties in accordance with this paragraph. To Seller: Brian Milich Mch4illin Communities, LLC 2727 Hoover Avenue National City, CA 91950 Phone: (619) 336-3138 Fax: (619) 336-3396 To Buyer: David Hauser Deputy City Engineer City of Carlsbad 1635 Faraday Avenue Carlsbad, CA 92008 Phone: (760) 602-2720 Fax: (760) 602-8562 To Beneficiary: President Rancho Carlsbad Owners Association 5200 El Camino Real Carlsbad, California 92008 Phone: (760) 438-0333 Fax: (760) 438-1808 and L. Sue Loftin, Esq. THE LOFI'IN FIRM 4330 La Jolla Village Dr., Suite 330 San Diego, California 92122 Phone: (858) 535-9380 Fax: (858) 535-9381 21. Time of Essence. Time is of the essence to this Agreement. 22. Entire Ameement. This instrument contains the entire agreement between the parties related to the options herein granted, and supersedes all prior oral and written agreements between the parties with respect to the Property, however, it does not affect any of the conditions of approval for the Project. Any oral representations or modifications concerning this Agreement shall be of no force or effect. This Agreement may be amended only by a subsequent agreement in writing signed by all parties. 12 SD-DocSUO4222.12 23. Interpretation and Governing Law. This Agreement and any dispute arising hereunder shall be governed and interpreted in accordance with the laws of the State of California. This Agreement shall be construed as a whole according to its fair language and common meaning to achieve the objectives and purposes of the parties hereto, and the rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not be employed in interpreting this Agreement, each party having been represented by counsel in the negotiation and preparation hereof. 24. Incorporation of Recitals. The recitals set forth at the beginning of this Agreement are part of this Agreement. 25. Section Headinm. All section headings and subheadings are inserted for convenience only and shall not affect any construction or interpretation of this Agreement. 26. Counterparts. This Agreement may be executed by the parties in counterparts, which counterparts shall be construed together and have the same effect as if all of the parties had executed the same instrument. [SIGNATURES ON FOLLOWING PAGE] 13 SD-DOCSU04222.12 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written. SELLER CALAVERA HILLS I1 LLC, a California limited liability company By its Manager: McMillin Companies, LLC, By: Its: "wfl By: BUYER CITY OF CARLSBAD, a municipal colporation Its: BENEFICIARY: RANCHO CARLSBAD OWNERS ASSOCIATION, INC. 14 SD-DOCSU04222.12 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written. SELLER: CALAVERA HILLS II LLC, a California limited liability company a Delaware limited liability company By its Manager: McMiliin Companies, LLC, ATTEST: Its: Its: BUYER BENEFICIARY: RANCHO CARLSBAD OWNERS ASSOCIATION. INC. By: 14 IN WITNESS WHEREOF, &e parties have executed this Agreement as ofthe date first above written. SELLER CALAVERA HILLS II LLC, a California liited liability company a Delaware liited liability company By its Manager McMillin Companies, LLC, Its: By: Its: BUYER: CITY OF CARLSBAD, a municipal corporation By: BENEFICIARY RANCHO CARLSBAD OWNERS ASSOCIATION, INC. 14 SD-DOCS\304222.12 EXHIBIT A [Legal Description of Property] 15 AUGUST 27, 2002 J.N. : 01-0185 PAGE 1 OF 1 LEGAL DESCRIPTION FOR OPTION PARCEL THAT PORTION OF PARCEL 3 OF ADJUSTMENT PLAT ADJ 01-13 PER CERTIFICATE OF COMPLIANCE CE 01-56 IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, RECORDED AS DOCUMENT 2001-0865066 ON NOVEMBER 28, 2001 IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS : BEGINNING AT ANGLE POINT NO. 19 ON THE SOUTHERLY LINE OF RECORD OF SURVEY NO. 17111 FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY ON AUGUST 24, 2001; THENCE NORTH 77'55'34" WEST (SEE CERTIFICATE OF CORRECTION OF SAID RECORD OF SURVEY RECORDED NOVEMBER 29, 2001 AS DOC. NO. 2001-0869050 IN THE OFFICE OF SAID COUNTY RECORDER) ALONG THE SOUTHERLY LINE OF SAID RECORD OF SURVEY 113.37 FEET; THENCE LEAVING SAID SOUTHERLY LINE NORTH 8O26'47" WEST 86.33 FEET, NORTH 81'33'13'' EAST 49.99 FEET, NORTH 8'26'47'' WEST 85.24 FEET, NORTH 11°57'45" EAST 71.31 FEET, NORTH 8O26'41" WEST 152.55 FEET TO THE SOUTHERLY LINE OF FUTURE CANNON ROAD; THENCE EASTERLY ALONG THE SOUTHERLY LINE OF FUTURE CANNON ROAD NORTH 81"33' 13" EAST 335.71 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE TO THE NORTH AND HAVING A RADIUS OF 1451.00 FEET; THENCE EASTERLY ALONG SAID CURVE 429.98 FEET THROUGH A CENTRAL ANGLE OF 16'58'43''; THENCE LEAVING THE SOUTH LINE OF FUTURE CANNON ROAD SOUTH 25"25'30" EAST 135.56 FEET TO THE SOUTHERLY LINE OF SAID RECORD OF SURVEY; THENCE WESTERLY ALONG SAID SOUTHERLY LINE SOUTH 51'39'15'' WEST 67.24 FEET, SOUTH 48'19'13'' WEST 404.31 FEET, SOUTH 65"09'20" WEST 386.97 FEET TO THE POINT OF BEGINNING, ALL AS SHOWN ON THE ATTACHED PLAT FOR CONVENIENCE SAKE. THE AREA OF ABOVE DESCRIBED PROPERTY IS 248,292 S.F. OR 5.70 ACRES. EXHIBIT B [Purchase Agreement and Escrow Instructions for Buyer (City)] 16 SD-DOCSU04222.12 DRAFT 8/16/2002 PURCHASE AGREEMENT AND ESCROW INSTRUCTIONS BETWEEN CALAVERA HILLS I1 LLC AS SELLER AND THE CITY OF CARLSBAD AS BUYER DRAFT 8/16/2002 TABLE OF CONTENTS . Article & ARTICLE 1 . Fundamental Provisions ........................................................................................ 1 ARTICLE 2 - Agreement of Sale ................................................................................................. 2 ARTICLE 3 - Buyer’s Deliveries to Escrow Agent ..................................................................... 2 ARTICLE 4 - Seller’s Deliveries to Escrow Agent ..................................................................... 3 ARTICLE 5 - Conditions Precedent ............................................................................................. 3 ARTICLE 6 - Closing ................................................................................................................... 3 ARTICLE 7 - Prorations, Fees and Costs ..................................................................................... 5 ARTICLE 8 -Distribution of Funds and Documents ................................................................... 6 ARTICLE 9 - Delivery of Documents; Liquidated Damages ...................................................... 6 ARTICLE 10 -No Assignment by Buyer .................................................................................... 7 ARTICLE 11 -Representations and Warranties .......................................................................... 8 ARTICLE 12 - As Is Purchase ..................................................................................................... 9 ARTICLE 13 -Notices ................................................................................................................. 9 ARTICLE 14 - Extent of Escrow Agent’s Responsibilities ......................................................... 9 ARTICLE 15 -Damage and Condemnation .............................................................................. 10 ARTICLE 16 - General Provisions ............................................................................................ 11 TABLE OF EXHIBITS Exhibit Paragraph A . Legal Description of the Property ................................................................................. 1.4.1 B . Declaration of Restrictions .................................................................................. 3.2.3, 4.1.2 C . Flood Easement Agreement ................................................................................ 3.2.4, 4.1.3 SD-WCSU06845.1 I DRAFT 8/16/2002 D . Underground Facilities Easement Agreement ...................................................... 3.25, 4.1.5 E . LandscapinglSound Wall Easement Agreement ........................................................... 3.2.6 F . Grant Deed .................................................................................................................... 4.1.1 11 .. DRAFT 8/16/2002 PURCHASE AGREEMENT AND ESCROW INSTRUCTIONS IN CONSIDERATION of the mutual covenants set forth in this Agreement, Calavera Hills II LLC (“Seller”) agrees to sell, and the City of Carlsbad (“Buyer”) agrees to buy, the property hereafter described, upon the following terms and conditions. ARTICLE 1 -Fundamental Provisions 1.1 Date of this Agreement. This Agreement is entered into on 1.2 Oution Ameement. This Agreement is made in relation to Buyer’s exercise of an option to purchase the property described below, as set forth in a certain Option Agreement dated Carlsbad Owners Association Inc. ,2002 (“Option Agreement”) by and among Seller, Buyer and the Rancho 1.3 Escrow Agent. Upon execution of this Agreement by both parties, Seller shall establish an escrow (“Escrow”) with as Escrow Agent (“Escrow Agent”). This Agreement shall be used as the basis for the Escrow Agreement with the Escrow Agent. Seller and Buyer shall cooperate in the preparation and execution of Escrow instructions. 1.4 Property. The Property to be purchased and sold pursuant to this Agreement shall be comprised of fee simple title in and to the land more particularly described on Exhibit “A attached hereto (the “Property”). 1.5 1.6 1.7 1.8 Total Price: Escrow Time Limit Date: Thirty (30) days from the date of this Agreement. Address for Notices to Seller: Attn: Address for Notices to Buver: SD-DOCSU06845. I1 DRAFT 8/16/2002 Attn: 1.9 Address for Notices to Escrow Agent: Attn: ARTICLE 2 - Aereement of Sale 2.1 Seller is the owner of fee title to the Property specified in Article 1. 2.2 Seller hereby agrees to sell the Property, and Buyer hereby agrees to buy the Property, for the Total Price specified in Article 1, upon the terms and conditions set forth herein. 2.3 The Total Price shall be payable in cash at the close of escrow. ARTICLE 3 -Buyer’s Deliveries to Escrow Agent 3.1 Prior to 3:OO p.m. of the next preceding regular business day before the Closing Date, Buyer shall deliver to Escrow Agent each of the following: 3.1.1 The Total Price specified in Article 1. 3.1.2 The amount, if any, required of Buyer under Article 7 entitled “Prorations, Fees and Costs.” 3.1.3 A counterpart original of the Declaration of Restrictions (“Declaration of Restrictions”), the form of which is attached as Exhibit “B” hereto, duly executed and acknowledged by Buyer. 3.1.4 A counterpart original of the Flood Easement Agreement, the form of which is attached as Exhibit “C” hereto, duly executed and acknowledged by Buyer. 3.1.5 A counterpart original of the Underground Facilities Easement Agreement, the form of which is attached as Exhibit “D’ hereto, duly executed and acknowledged by Buyer. 3.1.6 A counterpart original of the LandscapingBound Wall Easement Agreement, the form of which is attached as Exhibit “E’ hereto, duly executed and acknowledged by Buyer. 3.1.7 A Certificate of Acceptance. 2 SO”33.UO6845.11 DRAFT 8/16/2002 3.2 The failure of Buyer to make any’delivery required above by the date, or within the time, set forth above shall constitute a material breach hereof by Buyer. ARTICLE 4 - Seller’s Deliveries to Escrow Agent 4.1 Prior to the Closing Date, Seller shall deliver to Escrow Agent each of the following: 4.1.1 A grant deed (the “Seller’s Grant Deed”), the form of which is attached as Exhibit “F hereto, duly executed and acknowledged by Seller, conveying the Property to Buyer. 4.1.2 A counterpart original of the Declaration of Restrictions, the form of which is attached as Exhibit “B” hereto, duly executed and acknowledged by Seller. 4.1.3 A counterpart original of the Flood Easement Agreement, the form of which is attached as Exhibit “C” hereto, duly executed and acknowledged by Seller. 4.1.4 A counterpart original of the Underground Facilities Easement Agreement, the form of which is attached as Exhibit “D’ hereto, duly executed and acknowledged by Seller. 4.1.5 A counterpart original of the LandscapingBound Wall Easement Agreement, the form of which is attached as Exhibit “E hereto, duly executed and acknowledged by Seller. 4.2 The failure of Seller to make any delivery required above by the date, or within the time, set forth above shall constitute a material breach hereof by Seller. ARTICLE 5 -Conditions Precedent 5.1 The closing of the escrow is subject to the following condition precedent: 5.1.1 Compliance with the Subdivision Map Act, California Government Code sections 66410, et seq. 5.2 In the event the foregoing condition is not satisfied, either party, provided it is not then in default hereunder, may terminate the escrow and this Agreement by giving a written notice of termination to the other party and Escrow Agent. The giving of such notice shall be optional, not mandatory. No delay in the giving of such notice shall affect the rights hereunder of the party giving the same. In the event such notice is given, the provisions of Paragraphs 6.4 and 6.5 shall apply. ARTICLE 6- Closing 6.1 Escrow Agent shall close the escrow on the Escrow Time Limit Date specified in Article 1 (the “Closing Date”) by (i) filing for record the Seller’s Grant Deed and such other 3 SD-DocSUO6845.11 DRAFT 8/16/2002 documents as may be necessary to procure the ALTA Title Policy (described below), (ii) filing for record the Declaration of Restrictions delivered pursuant to Paragraphs 3.2.3 and 4.1.2, (iii) filing for record the Easement Agreement delivered pursuant to Paragraphs 3.2.4 and 4.1.3, and (iv) delivering funds and documents as set forth in Article 8 entitled “Distribution of Funds and Documents,” WHEN AND ONLY WHEN each of the following conditions has been satisfied: 6.1.1 All funds and instruments required by Articles 3 and 4 have been delivered to Escrow Agent. 6.1.2 The condition precedent set forth in Article 5 has been, or upon such closing shall be, satisfied or waived. 6.1.3 Escrow Agent has procured, or is satisfied that it can procure, the Title Company’s ALTA policy of title insurance (the “ALTA Title Policy”) with liability in the amount of the Total Price, insuring that fee title to the Property vests in Buyer subject only to (i) nondelinquent county and city, if any, general and special taxes constituting a lien at the close of escrow, and the lien of supplemental taxes, if any, pursuant to the provisions of Chapter 3.5 of the California Revenue and Taxation Code, (ii) the matters described in Schedule B, Part I, of the ALTA Title Policy, (iii) covenants, conditions, reservations, restrictions, easements and other items appearing as exceptions in the Preliminary Title Report, order number dated , -, or other items shown on the Survey, order number dated , -, that Buyer disapproves, other than the matters reported therein as exceptions (iv) any other lien voluntarily imposed by Buyer as of the close of the escrow. of the Preliminary Title Report, and 6.2 If all of the conditions set forth in Subparagraphs 6.1.1 through 6.1.3 become satisfied at a date earlier than the Closing Date, Escrow Agent shall close the escrow at such earlier date. 6.3 If Escrow Agent cannot close the escrow on or before the Closing Date, it will, nevertheless, close the same when all conditions have been satisfied or waived, notwithstanding that one or more of such conditions has not been timely performed, unless (i) a notice of termination has already been delivered to Escrow Agent in accordance with the provisions of Paragraph 5.2, or (ii) after the Closing Date and prior to the close of the escrow, Escrow Agent receives a written notice to terminate the escrow and this Agreement from a party who, at the time such notice is delivered, is not in default hereunder. The right to terminate the escrow and this Agreement under the provisions of clause (ii) of this Paragraph shall be optional, not manda- tory. No delay in the giving of such notice shall affect the rights hereunder of the party giving the same. 6.4 Escrow Agent shall have no liability or responsibility for determining whether or not a party giving a notice of termination is or is not in default hereunder. Within two working days after receipt of such notice from one party, Escrow Agent shall deliver a copy of such notice to the other party. Unless written objection to the termination of the escrow is received by 4 SD_DOCSU06845.II DRAFT 8/16/2002 Escrow Agent within 10 days after Escrow Agent so delivers such notice to the other party, (i) Escrow Agent shall forthwith terminate the escrow and return all funds, documents and other items held by it to the party depositing same, except that Escrow Agent may retain such documents and other items usually retained by escrow agents in accordance with standard escrow termination procedures and practices, and (ii) each party shall forthwith pay to Escrow Agent one-half of Escrow Agent’s reasonable escrow termination charges. Notwithstanding the foregoing provisions of this Paragraph, Escrow Agent may deduct from any cash or other funds held by it, a sum sufficient to pay its escrow termination charges in full. If written objection to the termination of the escrow is delivered to Escrow Agent within such 10-day period, Escrow Agent is authorized to hold all funds, documents and other items delivered to it in connection with the escrow and may, in Escrow Agent’s sole discretion, take no further action until otherwise directed, either by the parties’ mutual written instructions or final order of a court of competent jurisdiction. 6.5 Neither (i) the exercise of such right of termination, (ii) delay in the exercise of such right, nor (iii) the return of funds, documents or other items, shall affect the right of the party giving such notice of termination to pursue legal. remedies for the other party’s breach of this Agreement (including but not limited to damages for the payment of all or any portion of Escrow Agent’s escrow termination charges). Nor shall (i) the giving of such notice, (ii) the failure to object to termination of the escrow, or (iii) the return of funds, documents or other items affect the right of the other party to pursue other legal remedies for the breach of the party who gives such notice. ARTICLE 7 -Prorations, Fees and Costs 7.1 Escrow Agent shall prorate (Le., apportion) between the parties, in cash, to the close of the escrow, only county, city and special district taxes and assessments (if any), based on the latest information available to Escrow Agent. 7.2 All prorations andor adjustments called for in this Agreement shall be made on the basis of a 30-day month, unless otherwise specifically instructed in writing. 7.3 Seller shall pay (i) County Documentary Transfer Tax, in the amount Escrow Agent determines to be required by law, (ii) the premium that the Title Company would have charged for a CLTA Title Policy (“CLTA Title Policy”) on the Property with liability in the amount of the Total Price, (iii) one-half of Escrow Agent’s escrow fee or escrow termination charge, (iv) fees for beneficiaries’ statements, and (v) usual seller’s document drafting and recording charges. 7.4 Buyer shall pay (i) one-half of Escrow Agent’s escrow fee or escrow termination charge,, (ii) the cost of obtaining the ALTA Title Policy over the premium charged for a CLTA Title Policy, and (iii) the usual buyer’s document drafting charges. 5 DRAFT 84 6/2002 ARTICLE 8 - Distribution of Funds and Documents 8.1 All cash received hereunder by Escrow Agent shall be, until the close of the escrow, kept on deposit with other escrow funds in Escrow Agent’s general escrow account(s), in any state or national bank, and may be transferred to any other such general escrow account(s). 8.2 Escrow Agent shall pay no interest on cash received hereunder by it, 8.3 All disbursements by Escrow Agent shall be made by checks or wire transfers of Escrow Agent. 8.4 Escrow Agent will, at the close of the escrow, pay from funds to which Seller shall be entitled and from funds, if any, deposited by Seller with Escrow Agent, to the obligees thereof, all liens and encumbrances other than those permitted hereby to be shown in the ALTA Title Policy. 8.5 Escrow Agent will cause the County Recorder of San Diego County to mail the Seller’s Grant Deed (and each other document which is herein expressed to be, or by general usage is, recorded) after recordation, to the grantee, beneficiary or person (i) acquiring rights under said document or (ii) for whose benefit said document was acquired. 8.6 Escrow Agent will, at the close of the escrow, deliver by United States mail (or will hold for personal pickup, if requested) each nonrecorded document received hereunder by Escrow Agent, to the payee or person (i) acquiring rights under said document or (ii) for whose benefit said document was acquired. 8.7 Escrow Agent will, at the close of the escrow, deliver by United States mail (or hold for personal pickup, if requested) (i) to Seller, or order, the cash, plus or minus any appropriate prorations or other charges, and (ii) to Buyer, or order, any excess funds theretofore delivered to Escrow Agent by Buyer. 8.8 Escrow Agent will, at the close of the escrow, deliver to Seller a copy of the Seller’s Grant Deed (conformed to show recording data) and each document recorded to place title in the condition required by this Agreement. ARTICLE 9 -Delivery of Documents: Liauidated Damages 9.1 Escrow Agent shall have no concern with, or liability or responsibility for, this Article. 9.2 If the escrow is terminated for any reason other than a default by Seller, then forthwith upon such termination, Seller shall have the right to obtain from Buyer copies of (i) any documents and materials related to the Property previously delivered by Seller to Buyer, and (ii) all studies, reports, governmental applications, permits, maps, plans, specifications and other documents in Buyer’s possession or that it has made or contracted to be made respecting the Property, including without limitation all engineering reports, soil tests, seismic studies, SD-DOCSU06US.I I 6 DRAFT 8/16/2002 environmental reports, grading, flood control and drainage plans, design renderings, market analyses, feasibility studies, and all non-privileged correspondence with governmental agencies and their personnel concerning the same. The foregoing assignment of rights by Buyer shall in no way be construed to place upon Seller any obligation or liability to any party preparing or otherwise working on said documents, and Buyer shall take such actions and make such payments as may be necessary to deliver copies of such documents to Seller, and to preclude any claim of any nature against Seller or the Property for any sums owing on account of the preparation or making of such documents. 9.3 If Buyer fails to complete the purchase of the Property and such failure constitutes a breach of this Agreement, Buyer, by its initials following this Paragraph, and Seller, by its initials following this Paragraph, agree that: IT WOULD BE IMPRACTICABLE OR EXTREMELY DIFFICULT TO FIX, PRIOR TO SIGNING THIS AGREEMENT, THE ACTUAL DAMAGES WHICH WOULD BE SUFFERED BY SELLER IF BUYER FAILS TO PERFORM ITS OBLIGATIONS UNDER THIS AGREEMENT, THEREFORE, A SUM EQUAL TO 5% OF THE TOTAL PURCHASE PRICE SHALL CONSTITUTE LIQUIDATED DAMAGES TO SELLER FOR SUCH BREACH BY BUYER. BUYER AND SELLER AGREE THAT THE AFORESAID SUM IS A REASONABLE AMOUNT FOR LIQUIDATED DAMAGES FOR SUCH A BREACH UNDER THE CIRCUMSTANCES EXISTING AT THE TIME THIS AGREEMENT IS ENTERED INTO. FORTHWITH UPON ANY SUCH BREACH BY BUYER, BUYER SHALL EITHER (i) INSTRUCT ESCROW AGENT, IN WRITING, TO PAY SUCH SUM TO SELLER OUT OF FUNDS DEPOSITED WITH ESCROW AGENT BY BUYER AND NOT PREVIOUSLY RELEASED TO SELLER, OR (ii) PAY SUCH SUM TO SELLER. UPON PAYMENT OF SAID SUM TO SELLER, BUYER SHALL BE RELEASED FROM ANY FURTHER LIABILITY TO SELLER, AND ESCROW CANCELLATION FEES AND TITLE COMPANY CHARGES SHALL BE PAID BY SELLER. Seller: Buyer: ARTICLE 10 - No Assignment by Buyer 10.1 Buyer shall have no right to assign its rights hereunder without first having obtained Seller’s written consent. 10.2 In the event of any assignment approved in writing by Seller, the assignee shall be and become (i) the grantee of the Seller’s Grant Deed, (ii) the insured owner under the ALTA Title Policy, and (iii) the person(s) having the rights or obligations to (a) deliver statements, (b) deliver documents, (c) give approvals, (d) waive conditions, or (e) make demands, all as may be permitted or required by this Agreement and not then already accomplished by Buyer or another assignee. Notwithstanding any such assignment approved by Seller, Buyer shall not be relieved of liability for any prior or subsequent breach hereof by Buyer or any assignee. I SD-WCSU06845.ll DRAFT 8/16/2002 ARTICLE 11 - Reuresentations and Warranties 11.1 Escrow Agent shall have no concern with, or liability or responsibility for, this Article. 11.2 In addition to any other express agreements of Seller contained herein, the matters set forth in this Paragraph constitute representations and warranties by Seller which shall be true and correct as of the close of escrow. In the event that, during the period between the execution of this Agreement and the close of escrow, Seller learns, or has reason to believe, that any of the following representations and warranties may cease to be true, Seller hereby covenants to give notice thereof to Buyer immediately: 11.2.1 Brokers. Seller has not engaged or dealt with any broker or finder in connection with the sale contemplated by this Agreement. 11.2.2 Authority. Seller has the legal power, right and authority to enter into this Agreement and to consummate the transaction contemplated hereby. 11.2.3 Condition of Property. During the escrow period and until the close of escrow, unless otherwise agreed to by the parties, Seller shall maintain the Property in its present condition, ordinary wear and tear excepted. 11.2.4 w. Except as set forth herein, there are no leases, subleases, or tenancies in effect related to the Property, or which Seller is aware. 11.3 In addition to any other express agreements of Buyer contained herein, the matters set forth in this Paragraph constitute representations and warranties by Buyer which shall be true and correct as of the close of escrow. In the event that, during the period between the execution of this Agreement and the close of escrow, Buyer learns, or has reason to believe, that any of the following representations and warranties may cease to be true, Buyer hereby covenants to give notice thereof to Seller immediately: 11.3.1 Brokers. Buyer has not engaged or dealt with any broker or finder in connection with the sale contemplated by this Agreement. 11.3.2 Authority. Buyer has the legal power, right and authority to enter into this Agreement and to consummate the transaction contemplated hereby. 11.3.3 Prouertv Insuection. Buyer has inspected the Property, has analyzed the feasibility of its acquisition and use, and specifically agrees to take the Property as is. If any facts, conditions or circumstances change from those presently known to Buyer, Buyer’s obligations hereunder shall nevertheless remain in full force and effect. 11.3.4 Seller’s Reuresentations and Warranties. Seller has made no representations or warranties to Buyer, oral or written, except as specifically set forth in this Agreement or the Option Agreement. 8 SD-DOCSU06845.11 DRAFT 8/16/2002 ARTICLE 12 - As Is Purchase 12.1 As Is Purchase. As a material inducement to Seller’s execution and delivery of this Agreement and performance of its duties under this Agreement, Buyer, by its initials following this Paragraph, and Seller, by its initials following this Paragraph, agree that: EXCEPT AS OTHERWISE PROVIDED IN THIS AGREEMENT, BUYER HAS AGREED TO ACCEPT POSSESSION OF THE PROPERTY ON THE CLOSING DATE ON AN “AS IS” BASIS. SELLER AND BUYER AGREE THAT THE PROPERTY SHALL BE SOLD “AS IS, WHERE IS, WITH ALL FAULTS” WITH NO RIGHT OF SET-OFF OR REDUCTION IN THE PURCHASE PRICE, AND, EXCEPT AS SET FORTH IN ARTICLE 11 HEREIN, SUCH SALE SHALL BE WITHOUT REPRESENTATION OR WARRANTY OF ANY KIND, EXPRESS OR IMPLIED (INCLUDING WITHOUT LIMITATION, WARRANTY OF INCOME POTENTIAL, USES, MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE), AND SELLER DISCLAIMS AND RENOUNCES ANY SUCH REPRESENTATION OR WARRANTY. Seller: Buyer: ARTICLE 13 -Notices 13.1 Unless otherwise specifically provided herein, all notices, demands or other communications given hereunder shall be in writing and shall be deemed to have been duly delivered upon personal delivery, or as of the second business day after mailing by United States mail, postage prepaid, to the Address of the recipient specified in Article 1, or to such other address or person as any party may designate to the others for such purpose in the manner hereinabove set forth. ARTICLE 14 -Extent of Escrow Agent’s Resuonsibilities 14.1 Escrow Agent shall not be liable for any of its acts or omissions unless the same shall constitute negligence or willful misconduct. 14.2 Escrow Agent shall have no obligation to inform any party of any other transaction or of facts within Escrow Agent’s knowledge, even though the same concerns the Property, provided such matters do not prevent Escrow Agent’s compliance with this Agreement. 14.3 Escrow Agent shall not be responsible for (i) the sufficiency or correctness as to form or the validity of any document deposited with Escrow Agent, (ii) the manner of execution of any such deposited document, unless such execution occurs in Escrow Agent’s premises and under its supervision, or (iii) the identity, authority or rights of any person executing any document deposited with Escrow Agent. 14.4 If Escrow Agent receives or becomes aware of conflicting demands or claims with respect to the escrow, the rights of any party hereto, or funds, documents or other items 9 SD-WCSUO6845. I I DRAFT 8/16/2002 deposited with Escrow Agent, Escrow Agent shall have the right to discontinue any further acts until such conflict is resolved to its satisfaction, and it shall have the further right to commence or defend any action for the determination of such conflict. The parties shall, immediately after demand therefor by Escrow Agent, reimburse Escrow Agent (in such respective proportions as Escrow Agent shall determine) any reasonable attorneys’ fees and court costs incurred by Escrow Agent pursuant to this Paragraph. 14.5 Any commitment made in writing to Escrow Agent by a bank, trust company, insurance company or savings and loan association, to deliver its check or funds into the escrow may, in the sole discretion of Escrow Agent, be treated as the equivalent of a deposit herein of the amount thereof. Recordation of any instruments delivered through the escrow, if necessary or proper in the issuance of the ALTA Title Policy, is authorized. No examination or insurance as to the amount or payment of personal property taxes is required unless specifically requested. If any party obtains a loan on the Property, then, during the pendency of the escrow, Escrow Agent is authorized to furnish the lender, or anyone acting on its behalf, any information concerning the escrow, including, but not limited to, a certified copy of this Agreement and any amendments hereto. 14.6 Escrow Agent shall not be liable for proration of any supplemental tax bills related to this transaction which may hereafter be issued due to reassessments pursuant to the provisions of Chapter 3.5 of the California Revenue and Taxation Code. ARTICLE 15- Damage and Condemnation 15.1 The risk of physical loss to the Property shall be borne by Seller prior to the close of escrow and by Buyer thereafter. In the event that the Property shall be damaged by fire, flood, earthquake or other casualty to the extent that the cost to repair or restore such damage will exceed 5% of the Total Price, Buyer may, at its option, elect not to acquire the Property, by written notice to Seller within 30 days after the date upon which such damage or other casualty occurs. If Buyer does not give such notice, Buyer shall be deemed to have elected to proceed with the purchase and shall close thereon, at which time Seller shall assign to Buyer all of Seller’s interests in all insurance proceeds (if any) relating to such damage. In the event that such damage occurs and Buyer elects not to purchase the Property, then the escrow and this Agreement shall be terminated. 15.2 If the cost to repair any such damage to the Property will not exceed 5% of the Total Price, then Buyer may not terminate this Agreement by reason thereof, but Seller shall assign to Buyer at the closing Seller’s interests in all insurance proceeds (if,any) relating to such damage and Buyer shall accept the Property in its condition existing on the date of closing. 15.3 In the event that, prior to the close of escrow, any governmental agency shall commence any action in eminent domain to take any material portion of the Property, Buyer shall have the option either to (i) elect not to acquire the Property, or (ii) complete the acquisition of the Property in which case Buyer shall be entitled to all of the proceeds of such talung, such election to be made by written notice to Seller within 30 days after the date upon which Buyer 10 SD-OOCSU06845.11 DRAFT 8/16/2002 receives notice of the commencement of such governmental action. Buyer’s failure to give such notice shall be deemed to constitute an election by Buyer to complete the acquisition of the Property. ARTICLE 16 - General Provisions 16.1 Definitions. Unless the context otherwise indicates, whenever used in this Agreement: 16.1.1 The word “cash” means (i) currency, (ii) checks currently dated, payable to Escrow Agent, and honored upon presentation for payment, (iii) amounts credited by wire- transfer into Escrow Agent’s bank account, or (iv) if monies are deposited with Escrow Agent within 20 days of the Closing Date, funds in such form as Escrow Agent in its sole discretion requires. 16.1.2 The word “party” or “parties” means Buyer and/or Seller, as the context may require. 16.1.3 The word “escrow” means the escrow created by this Agreement. 16.1.4 The phrase “the opening of the escrow” means the date Escrow Agent signs the “Consent of Escrow Agent” attached hereto. 16.1.5 The phrase “the close of the escrow” means the date and time at which the Seller’s Grant Deed is filed for record. 16.2 Waiver of Relocation Assistance. Seller is and has been made aware of the provisions of the Relocation Assistance Act (California Government Code sections 7260 et seq.) and herein agrees to waive any and all provisions of that act and any companion federal law or regulation. Seller agrees to this waiver after consulting with its attorneys, and being advised of the implications of this waiver. 16.3 Cautions. Captions in this Agreement are inserted for convenience of reference only and do not define, describe or limit the scope or the intent of this Agreement or any of the terms hereof. 16.4 Exhibits. All exhibits referred to herein and attached hereto are incorporated herein by reference. 16.5 Entire Aereement. This Agreement contains the entire agreement between the parties relating to the transaction contemplated hereby, and all prior or contemporaneous agreements, understandings, representations and statements, oral or written, are merged herein. 16.6 Amendment. No modification, waiver, amendment, discharge or change of this Agreement shall be valid unless the same is in writing and signed by the party against whom the enforcement of such modification, waiver, amendment, discharge or change is or may be sought. 11 SO_DOCSU06845.1 I DRAFT 8/16/2002 16.7 Auulicable Law. This Agreement shall be construed and enforced in accordance with the laws of the State of California. 16.8 Counterparts. This Agreement may be executed in counterparts, each of which is an original and all of which constitute but one agreement. 16.9 Time is of the Essence. Time is of the essence to this Agreement. 16.10 Survival of Obligations. Representations and Warranties. All obligations referred to herein to be performed at a time or times after the close of the escrow, and all warranties and representations contained herein, shall survive the close of the escrow and the delivery of Seller’s Grant Deed. 16.1 1 Tax-deferred Exchange. Seller may use the proceeds from the sale of the Property to affect one or more tax deferred exchange under Internal Revenue Code 3 1031. Buyer agrees to accommodate Seller in effecting such tax-deferred exchange. Seller shall have the right, expressly reserved herein, to elect such tax-deferred exchange at any time prior to the Closing Date. Seller and Buyer agree, however, that consummation of the purchase and sale of the Property under this Agreement is not conditioned on such exchange. If Seller elects to make a tax-deferred exchange, Buyer agrees to execute such additional escrow instructions, deeds, documents, agreements, or instruments to effect this exchange, provided that Buyer shall incur no additional costs, expenses, or liabilities in this transaction as a result of or in connection with this exchange. Seller agrees to hold Buyer harmless of any liability, damages, or costs, including reasonable attorney fees, that may arise from Buyer’s participation in such exchange. 16.12 Further Instruments. Each party hereto shall execute, acknowledge and deliver to the other party such further instruments and take such other actions as the other party may reasonably request in order to effectuate the purposes and provisions of this Agreement. 16.13 Severability. In the event that any term, covenant, condition, provision or agreement herein contained is held to be invalid, void or otherwise unenforceable by any court of competent jurisdiction, the fact that such term, covenant, condition, provision or agreement is invalid, void or otherwise unenforceable shall in no way affect the validity or enforceability of any other term, covenant, condition, provision or agreement herein contained. 16.14 Successors and Assigns. All terms of this Agreement shall be binding upon, inure to the benefit of and be enforceable by, the parties hereto and their respective legal representatives, successors and assigns. SDDOCSUO6845.11 12 DRAFT 8/16/2002 IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written. SELLER: CALAVERA HILLS I1 LLC, a California limited liability company a Delaware limited liability company By: By its Manager: McMillin Companies, LLC, By: BUYER: CITY OF CARLSBAD, a municipal corporation SD-DOCSU06845.11 13 DRAFT 8/16/2002 CONSENT OF ESCROW AGENT The undersigned Escrow Agent hereby agrees to (i) accept the foregoing Agreement, (ii) be escrow agent under said Agreement for the fees therein specified, and (iii) be bound by said Agreement in the performance of its duties as escrow agent; provided, however, that the undersigned shall have no obligations, liability or responsibility under (i) this Consent or otherwise, unless and until said Agreement, fully signed by the parties, has been delivered to the undersigned, or (ii) any amendment to said Agreement unless and until the same shall be accepted by the undersigned in writing. ESCROW AGENT: 14 DRAFT 811 6/2002 EXHIBIT “A” [Legal Description of Property] DRAFT 8/16/2002 EXHIBIT “B” Recording Requested By and When Recorded Mail To: City Clerk 1200 Carlsbad Village Drive Carlsbad, CA 92008 A: OVE SPACE FOR RECORDER’S USE ONLY DECLARATION OF RESTRICTIONS (FACILITIES RELOCATION PARCEL) THIS DECLARATION OF RESTRICTIONS (FACILITIES RELOCATION PARCEL) (the “Declaration”) is made on I -I by CALAVERA HILLS I1 LLC, California limited liability company (“Declarant”). RECITALS A. Pursuant to that certain Purchase Agreement and Escrow Instructions between Declarant and the CITY OF CARLSBAD, a municipal corporation (“Purchaser”), made as of , 20- (the “Purchase Agreement”), concurrently herewith Declarant is conveying to Purchaser or its assignee the real property located in the City of Carlsbad (the ‘‘W’), State of California, more particularly described on Exhibit “1” attached hereto and incorporated herein by this reference (the “Purchaser Property”). B. Purchaser intends to develop the Purchaser Property for use as a community garden, wash area, waste disposal area and RV Parking Lot (which includes, without limitation, parkng for boats, cars, jet skis, RVs, hay wagons and other personal items, subject to any applicable governmental approvals) (collectively referred to herein as the “Intended Uses”), to be used by the Rancho Carlsbad Owners Association and its members. C. Declarant owns certain real property located in the City adjacent to the Purchaser Property and more particularly described in Exhibit “2” [Robertson Ranch property] attached hereto and incorporated herein by this reference (the “Benefited Property”), and DRAFT 8/16/2002 Declarant intends to develop, or convey a portion of the Benefited Property to certain transferees who intend to develop, a master planned, mixed use commercial and residential community on the Benefited Property. D. In connection with the foregoing and in contemplation of the sale of the Purchaser Property to Purchaser, it is the desire and intention of Declarant to restrict the Purchaser Property, so that the Benefited Property will be benefited and each successive owner of all, or part of the Benefited Property, will be benefited. DECLARATION NOW, THEREFORE, Declarant declares that the Purchaser Property, is held and will be held, transferred, encumbered, used, sold, conveyed, leased, and occupied subject to the covenants, restrictions, and limitations set forth in this Declaration, which are established and agreed on for the purpose of enhancing and protecting the value, desirability, and attractiveness of the Benefited Property and the Purchaser Property and every part of such property. All of the restrictions, covenants, and limitations will run with the land and will be binding on all parties having or acquiring any right, title, or interest in the Purchaser Property, or any part thereof, and will inure to the benefit of all of the Benefited Property and the future owners of such property. Each grantee of a conveyance or purchaser under a contract or agreement of sale covering any right, title, or interest in any part of the Purchaser Property, by accepting a deed or a contract of sale or agreement of purchase, accepts the document subject to, and agrees to be bound by, any and all of the restrictions, covenants, and limitations set forth in this Declaration. 1. Use of the Purchaser Prooertv. There shall not be developed any use other than the Intended Uses on the Purchaser Property for the period of the land use approvals issued by the City of Carlsbad for such uses, or a period of 10 years from and after the date of the recordation hereof, whichever is longer. In addition, the owner of the Purchaser Property shall maintain and properly care for the pepper tree located on the Purchaser Property as shown on Exhibit 3 hereto (“Peuuer Tree”), consistent with generally accepted arboriculture practices, and no action shall be taken to harm, destroy, or remove the Pepper Tree, for as long as it remains healthy. 2. Robertson’s Ranch House. The single family home located on the Purchaser Property (the “Robertson’s Ranch House”) shall neither be used as a residence, nor for permanent or temporary human habitation, in perpetuity. 3. Enforcement. Enforcement will be by proceedings at law or in equity against any person or persons violating or attempting to violate any covenant either to restrain violation or to recover damages. Purchaser acknowledges that Declarant would not be willing to sell the Purchaser Property to Purchaser if Purchaser were unwilling to agree to the foregoing restrictions, and that Declarant would not have an adequate remedy in damages if Purchaser were to breach the foregoing covenant. Declarant and its successors and assigns and any Owner of the Benefited Property may specifically enforce the foregoing covenants. 17 SD-wCSUO6845.11 DRAFT 8/16/2002 4. Severability. Invalidation of any one of these covenants by judgment or court order will not affect any of the other provisions, which will remain in full force and effect. 5. Covenants to Run With the Land. The Purchaser Property shall be held, developed, conveyed, hypothecated, encumbered, leased, rented, used and occupied subject to the covenants, restrictions and other limitations set forth in this Declaration (collectively, the “Restrictions”). The Restrictions are for the benefit of the Benefited Property. The Restrictions are intended and shall be construed as covenants and conditions running with the land and binding the Purchaser Property and equitable servitudes upon the Purchaser Property and every part thereof. All and each of the Restrictions shall be binding upon and burden all persons having or acquiring any right, title or interest in the Purchaser Property or any part thereof, and their successors and assigns, during their respective periods of ownership, and shall inure to the benefit of the Benefited Property and the fee owners of the Benefited Property, their successors and assigns and each such person, upon the sale or other transfer of its interest shall be released from all obligations arising hereunder. 6. Modifications. This Declaration shall not be rescinded or modified without the prior written consent of the Declarant for as long as it owns any part of the Benefited Property, and thereafter by the fee owner(s) of the Benefited Property. IN WITNESS WHEREOF, the Declarant have executed this instrument as of the date first above written. 18 DRAFT 8/16/2002 DECLARANT CALAVERA HILLS I1 LLC, California limited liability company Companies, LLC, a Delaware limited liability company By its Manager: McMillin By: Name: Title: By: Name: Title: Agreed and accepted by PURCHASER. ClTY OF CARLSBAD, a municipal corporation By: Name: Title: 19 DRAFT 8/16/2002 STATE OF CALIFORNIA ) County of San Diego ) ) ss. On , before me, Notary Public in and for said County and State, personally appeared personally known to be (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) islare subscribed to the within instrument and acknowledged to me that helshdthey executed the same in hislherltheir 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. ,a Witness my hand and official seal. Notary Public 20 DRAFT 8/16/2002 EXHIBIT "1" TO DECLARATION OF RESTRICTIONS DESCRIPTION OF PURCHASER PROPERTY SD-DocSUO6845.11 21 AUGUST 27, 2002 PAGE 1 OF 1 J.N. : 01-0185 LEGAL DESCRIPTION FOR OPTION PARCEL THAT PORTION OF PARCEL 3 OF ADJUSTMENT PLAT ADJ 01-13 PER CERTIFICATE OF COMPLIANCE CE 01-56 IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, RECORDED AS DOCUMENT 2001-0865066 ON NOVEMBER 28, 2001 IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS : BEGINNING AT ANGLE POINT NO. 19 ON THE SOUTHERLY LINE OF RECORD OF SURVEY NO. 17111 FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY ON AUGUST 24, 2001; THENCE NORTH 71°55'34" WEST (SEE CERTIFICATE OF CORRECTION OF SAID RECORD OF SURVEY RECORDED NOVEMBER 29, 2001 AS DOC. NO. 2001-0869050 IN THE OFFICE OF SAID COUNTY RECORDER) ALONG THE SOUTHERLY LINE OF SAID RECORD OF SURVEY 113.37 FEET; THENCE LEAVING SAID SOUTHERLY LINE NORTH 8"26'47" WEST 86.33 FEET, NORTH 81"33'13" EAST 49.99 FEET, NORTH 8'26'47'' WEST 85.24 FEET, NORTH ll"57'45" EAST 71.31 FEET, NORTH 8O26'47" WEST 152.55 FEET TO THE SOUTHERLY LI.NE OF FUTURE CANNON ROAD; THENCE EASTERLY ALONG THE SOUTHERLY LINE OF FUTURE CANNON ROAD NORTH 81"33'13" EAST 335.71 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE TO THE NORTH AND HAVING A RADIUS OF 1451.00 FEET; THENCE EASTERLY ALONG SAID CURVE 429.98 FEET THROUGH A CENTRAL ANGLE OF 16O58'43"; THENCE LEAVING THE SOUTH LINE OF FUTURE CANNON ROAD SOUTH 25"25'30" EAST 135.56 FEET TO THE SOUTHERLY LINE OF SAID RECORD OF SURVEY; THENCE WESTERLY ALONG SAID SOUTHERLY LINE SOUTH 51"39' 15" WEST 67.24 FEET, SOUTH 48'19'13'' WEST 404.31 FEET, SOUTH 65"09'20" WEST 386.97 FEET TO THE POINT OF BEGINNING, ALL AS SHOWN ON THE ATTACHED PLAT FOR CONVENIENCE SAKE. THE AREA OF ABOVE DESCRIBED PROPERTY IS 248,292 S.F. OR 5.70 ACRES. BASIS OF BEARING: COURSE 8 PER RECORD OF SURMY 17111 BEING S 65'09'20" W SD-WCSU06845.11 DRAFT 8/16/2002 EXHIBIT "2" TO DECLARATION OF RESTRICTIONS BENEFITED PROPERTY 22 ORDER NO. 1285531-6 LEGAL DESCRIPTION THE LAND REFERRED TO HEREIN IS SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF SAN DIEGO, AND IS DESCRIBED AS FOLLOWS: PARCEL 1 : THAT PORTION OF LOT E OF RANCHO AGUA HEDIONDA, IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 823, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, NOVEMBER 16, 1896, DESCRIBED AS FOLLOWS: THE SOUTHEAST CORNER OF CT 76-12 PER MAP 9935 FILED IN THE OFFICE OF THE BEGINNING AT THE SOUTHWEST CORNER OF RECORD OF SURVEY 16661, BEING ALSO COUNTY RECORDER OF SAID COUNTY ON JULY 14, 2000 AND DECEMBER 16, 1980 RESPECTIVELY; THENCE, SOUTH 1’42’35’’ WEST 1619.75 FEET, SOUTH 63’42’38” EAST 313.13 FEET, SOUTH 73’19’52” EAST 230.87 FEET, SOUTH 4’56’41’’ EAST 517.19 FEET TO A POW ON A CURVE CONCAVE TO THE SOUTH AND HAVING A RADIUS OF 1451 .OO FEET, A RADIAL LINE TO SAID CURVE BEARS SOUTH 28’78’39” EAST; THENCE, NORTHEASTERLY ALONG SAID CURVE 519.94 FEET THROUGH A CENTRAL ANGLE OF 20”31’52”; THENCE, TANGENT TO SAID CURVE NORTH 81”33’13” EAST 648.89 FEET TO A TANGENT CURVE CONCAVE TO THE NORTH AND HAVING A RADIUS OF 1349.00 FEET; THENCE, EASTERLY ALONG SAID CURVE 666.28 FEET THROUGH A CENTRAL ANGLE OF 28’17’56’’; THENCE, TANGENT TO SAID CURVE NORTH 53Y5’17” EAST 461.71 FEET TO A TANGENT CURVE NORTHEASTERLY ALONG SAID CURVE 32.06 FEET THROUGH A CENTRAL ANGLE OF CONCAVE TO THE NORTH AND HAVING A RADIUS OF 990.00 FEET; THENCE, 1°51’19”; THENCE, TANGENT TO SAID CURVE NORTH 51’23’58” EAST 60.28 FEET TO A TANGENT CURVE CONCAVE TO THE SOUTH AND HAVING A RADIUS OF 1010.00 FEET; THENCE, NORTHEASTERLY ALONG SAID CURVE 32.70 FEET THROUGH A CENTRAL ANGLE OF l”51’19”; THENCE, TANGENT TO SAID CURVE NORTH 53’15’17” EAST 336.29 FEET TO A TANGENT CURVE CONCAVE TO THE WEST AND HAVING A RADIUS OF 25.00 FEET; THENCE, NORTHERLY ALONG SAID CURVE 39.80 FEET THROUGH A CENTRAL ANGEL OF 91”12’49”, THENCE, TANGENT TO SAID CURVE NORTH 37’57’32” WEST 300.00 FEET TO A TANGENT CURVE CONCAVE TO THE EAST AND HAVING A RADIUS OF 210.00 ANGLE OF 5”42’26“; THENCE, TANGENT TO SAID CURVE NORTH 32”15’06” WEST 80.62 FEET; THENCE, NORTHERLY ALONG SAID CURVE 20.92 FEET THROUGH A CENTRAL FEET TO A TANGENT CURVE CONCAVE TO THE WEST AND HAVING A RADIUS OF 190.00 FEET; THENCE, NORTHERLY ALONG SAID CURVE 18.93 FEET THROUGH A CENTRAL ANGLE OF 5’42’26“; THENCE, TANGENT TO SAID CURVE NORTH 37’57’32’’ WEST 310.22 FEET TO A TANGENT CURVE CONCAVE TO THE SOUTHWEST AND HAVING A RADIUS OF 1349.00 FEET; THENCE, NORTHWESTERLY ALONG SAID CURVE 288.52 FEET THROUGH A CENTRAL ANGLE OF 12”15’16”; THENCE, TANGENT TO SAID CURVE NORTH 50’12’48” RADIUS OF 1451 .OO FEET; THENCE, NORTHWESTERLY ALONG SAID CURVE 480.31 FEET WEST IOO.00 FEET TO A TANGENT CURVE CONCAVE TO THE NORTHEAST AND HAVING A THROUGH A CENTRAL ANGLE OF 18”57’58” TO A POINT IN THE SOUTH LINE OF SAID RECORD OF SURVEY 16661, A RADIAL LINE TO SAID CURVE BEARS SOUTH 58’45’10” WEST; THENCE, NORTH 89”25’37” WEST ALONG THE SOUTH LINE OF SAID RECORD OF SURVEY 16661 1950.97 FEETTO THE POINTOF BEGINNING. ORDER NO. 1285531-6 SAID LAND BEING DESCRIBED AS PARCEL 1 ON CERTIFICATE OF COMPLIANCE RECORDED NOVEMBER 28,2001 AS FILE NO. 2001-0865064 OF OFFICIAL RECORDS. PARCEL 2: THAT PORTION OF LOTS D AND E OF RANCHO AGUA HEDIONDA, IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 823, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, NOVEMBER 16,1896, DESCRIBED AS FOLLOWS: THE SOUTHEAST CORNER ,OF CT 76-12 PER MAP 9935 FILED IN THE OFFICE OF THE BEGINNING AT THE SOUTHWEST CORNER OF RECORD OF SURVEY 16661, BEING ALSO COUNTY RECORDER OF SAID COUNTY ON JULY 14, 2000 AND DECEMBER 16, 1980 RESPECTIVELY, THENCE, ALONG THE SOUTHERLY LINE OF SAID RECORD OF SURVEY CONTINUING ALONG THE SOUTHERLY AND EASTERLY LINE OF SAID RECORD OF SOUTH 89”25’37” EAST 1950.97 FEET TO THE TRUE POINT OF BEGINNING; THENCE, SURVEY SOUTH 89’25’37” EAST 129.11 FEET, NORTH 13’44’27” EAST 781.66 FEET, NORTH 21O34’15” EAST 189.90 FEET, NORTH 14°47’00” EAST 160.15 FEET, NORTH 11’34’22’’ EAST 65.17 FEET, NORTH 7’12’14’’ EAST 135.30 FEET, NORTH 14’45’08” EAST 57.12 FEET, NORTH 20’50’34” EAST 126.05 FEET, NORTH 9’43’14”EAST 112.86 FEET, NORTH 1°15’18” EAST 150.28 IN THE OFFICE OF THE COUNTY RECORDER ON MARCH 16,1995; THENCE, LEAVING SAID FEET, SOUTH 89”37’14” EAST 355.61 FEET TO A POINT ON RECORD OF SURVEY 14818 FILED RECORD OF SURVEY 16661 AND CONTINUING SOUTHERLY ALONG THE WEST LINE OF RECORD OF SURVEY 14818, SOUTH 1O15’25” EAST 304.47 FEET (SOUTH I01l’30” EAST 305.18’ R), SOUTH 18’25’38’’ EAST, 694.08 FEET (SOUTH 18”19’26” EAST 694.27’ R), THENCE, LEAVING SAID RECORD OF SURVEY 14818 AND CONTINUING SOUTHERLY ALONG THE FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY ON NOVEMBER 4, WEST LINE OF THAT 363.14 ACRES PARCEL AS SHOWN ON RECORD OF-SURVEY 6616 1965; THENCE, SOUTH 1’05’41” WEST 1271.23 FEET (SOUTH 1’12’02” WEST 1271.40’ R), SOUTH 4O13’22” WEST 963.76 FEET (SOUTH 4”20’50” WEST 963.88’ R), SOUTH 51°39’15” WEST 1165.94 FEET 1165.94 FEET (SOUTH 51’47’48” WEST 1165.49’ R), SOUTH 48”19’13” WEST 404.3 I FEET (SOUTH 48”19’2!3” WEST 404.15’ R), SOUTH 65’09’20” WEST 386.97 FEET (SOUTH 635.06’ R),’ SOUTH 65’35’13’’ WEST 494.30 FEET (SOUTH 65”42’27” WEST 494.30’ R), SOUTH 65’14’32” WEST 387.06’ R), NORTH 77’55’34” WEST 635.12 FEET (NORTH 77’48’20” WEST 266.73 FEET (SOUTH 30”46’06” WEST 33 1.55’ TO THE CENTERLINE OF RS 682 R) TO A POINT 39O37‘39” WEST 339.77 FEET (SOUTH 39O44’53” WEST 339.77’ R), SOUTH 30’38’52” WEST COUNTY ROAD SURVEY NO. 1800-1 (KNOWN AS EL CAMINO REAL) ACCORDING TO IN A LINE THAT IS PARALLEL TO AND 63.00 FEET NORTHERLY OF THE CENTERLINE OF OFFICIAL PLAT THEREOF ON FILE IN THE OFFICE OF THE COUNTY ENGINEER OF SAN DIEGO COUNTY; THENCE, WESTERLY ALONG SAID NORTHERLY LINE, NORTH 66’42’10’’ OF A. CURVE CONCAVE TO THE NORTH AND HAVING A RADIUS OF 6,855.31 FEET, SAID WEST 13.53 FEET; THENCE, SOUTH 23O17’50” WEST 18.00 FEET ALONG THE RADIAL LINE ON ROAD SURVEY NO. 1800-1; THENCE, WESTERLY ALONG SAID NORTH LINE, AND POINT BEING ALSO ON THE NORTH LINE OF THAT 90 FOOT WIDE STRIP OF LAND SHOWN NORTH LINE, NORTH 32O44.07” EAST 16.78 FEET, SOUTH 82’48’22” EAST 72.17 FEET, NORTH CURVE THROUGH A CENTRAL ANGLE OF 2“10’51” 260.94 FEET; THENCE, LEAVING SAID 23’31’32” EAST 109.80 FEET, NORTH 25O38’31” EAST 100.08 FEET, NORTH 29’07’38” EAST 77.37 FEET, NORTH 3 l”48’12” EAST 60.19 FEET, NORTH 42’27’1 7” EAST 23.56 FEET, NORTH 37’46’23” EAST 139.56 FEET, NORTH 24”02’16” EAST 40.09 FEET, NORTH 46”32’58” EAST 28 I .65 FEET, NORTH 53O49’59” EAST 24 I .03 FEET, NORTH 67O15’16” EAST 15.60 FEET. SOUTH ORDERNO. 1285531-6 4’56’41’’ EAST 44.65 FEET TO A POINT ON A CURVE CONCAVE TO THE SOUTH AND 28’58’39’’ EAST; THENCE, NORTHEASTERLY ALONG SAID CURVE 5 19.94 FEET THROUGH A CENTRAL ANGLE OF 20’31’52’’; THENCE, TANGENT TO SAID CURVE NORTH 81O33’13” EAST 648.89 FEET TO A TANGENT CURVE CONCAVE TO THE NORTH AND HAVING A RADIUS OF 1349.00 FEET, THENCE, EASTERLY ALONG SAID CURVE 666.28 FEET THROUGH A CENTRAL ANGLE OF 28‘17’56’’; THENCE, TANGENT TO SAID CURVE NORTH 53°15’17” EAST 461.71 FEET TO A TANGENT CURVE CONCAVE TO THE NORTH AND HAVING A RADIUS OF 990.00 FEET; THENCE, NORTHEASTERLY ALONG SAID CURVE 32.06 FEET THROUGH A CENTRAL ANGLE OF lo51’19”; THENCE, TANGENT TO SAID CURVE NORTH 51’23’58” EAST 60.28 FEET TO A TANGENT CURVE CONCAVE TO THE SOUTH AND HAVING THROUGH A CENTR4L ANGLE OF l”51’19”; THENCE, TANGENT TO SAID CURVE NORTH A RADIUS OF 1010.00 FEET; THENCE, NORTHEASTERLY ALONG SAID CURVE 32.70 FEET 53’15’17” EAST 336.29 FEET TO A TANGENT CURVE CONCAVE TO THE WEST AND HAVING A RADIUS OF 25.00 FEET; THENCE, NORTHERLY ALONG SAID CURVE 39.80 FEET THROUGH A CENTRAL ANGLE OF 91O12’49”; THENCE, TANGENT TO SAID CURVE NORTH 37‘57’32’’ WEST 300.00 FEET TO A TANGENT CURVE CONCAVE TO THE EAST AND HAVING A RADIUS OF 210.00 FEET; THENCE, NORTHERLY ALONG SAID CURVE 20.92 FEET THROUGH A CENTRAL ANGLE OF 5‘42’26“; THENCE, TANGENT TO SAID CURVE NORTH 32’15’06” WEST 80.62 FEET TO A TANGENT CURVE CONCAVE TO THE WEST AND HAVING A RADIUS OF 190.00 FEET; THENCE, NORTHERLY ALONG SAID CURVE 18.93 FEET 37”57’32” WEST 310.22 FEET TO A TANGENT CURVE CONCAVE TO THE SOUTHWEST AND THROUGH A CENTRAL ANGLE OF 5”42’26“, THENCE, TANGENT TO SAID CURVE NORTH HAVING A RADIUS OF 1349.00 FEET; THENCE, NORTHWESTERLY ALONG SAID CURVE CURVE NORTH 50’12’48” WEST 100.00 FEET TO A TANGENT CURVE CONCAVE TO THE 288.52 FEET THROUGH A CENTRAL ANGLE OF 12°15’16”; THENCE, TANGENT TO SAID NORTHEAST AND HAVING A RADIUS OF 145 I .OO FEET; THENCE NORTHWESTERLY ALONG SAID CURVE 480.31 FEET THROUGH A CENTRAL ANGLE OF 18’57’58’’ TO A.POINT IN THE SOUTH LINE OF SAID RECORD OF SURVEY 16661, SAID POINT BEING THE TRUE POINT OF BEGINNING, A RADIAL LINE TO SAID CURVE AT THE TRUE POINT OF BEGMNING BEARS SOUTH 58O45’10” WEST. SAID LAND BEING DESCRIBED AS PARCEL 3 ON CERTIFICATE OF COMPLIANCE RECORDED NOVPMBER 28,2001 AS FILE NO. 2001-0865066 OF OFFICIAL RECORDS. HAVING A RADIUS OF 1451.00 FEET, A RADIAL LINE TO SAID CURVE BEARS SOUTH FEBRUARY 05.2002 321 PM MC SD-wCSUO6845.11 DRAFT 8/16/2002 EXHIBIT "3" TO DECLARATION OF RESTRICTIONS SHOWING LOCATION OF PEPPER TREE 23 L 0' 10' 40' 5' 20' ao' SCALE: 1' = 40' 02002 O'Doy Consultonts, Inc. I CONSULTflNTS 59W Pasteur Court civil Engineering Suite 100 Pb""i".j Corlsbod. Colifornio 92008 Processing 0doy~aoyconsultants.com For: 760-931 -8680 760-931-7700 Surveying I \~~S\Q~~O~~\Q~~~Z~SD~ 8-20-2002 5.01.38 pm mi C>!~TF liazoOirti DRAFT 8/16/2002 EXHIBIT “C” Recording Requested By and When Recorded Mail To: City Clerk 1200 Carlsbad Village Drive Carlsbad, CA 92008 A. ;OW SPACE FOR RECORDER’S USE ONLY FLOOD EASEMENT AGREEMENT This FLOOD EASEMENT AGREEMENT (“Agreement”) is entered into as of ,- between CALAVERA HILLS I1 LLC, California limited liability, (“Calavera”), and the CITY OF CARLSBAD, a municipal corporation, (“W’) with reference to the following facts: A. Contemporaneously herewith, Owner is purchasing from Calavera the real property located in the City of Carlsbad, California, more particularly described on Exhibit “1” attached hereto (“Owner’s Site”). B. Calavera is the owner of that certain real property located in the City Carlsbad, California, more particularly described on Exhibit “2” attached hereto (“Robertson Ranch”). C. Calavera desires to acquire certain rights in Owner’s Site. AGREEMENT NOW THEREFORE, for valuable consideration, receipt of which is hereby acknowledged, it is agreed as follows: 1. Owner hereby grants to Calavera the non-exclusive perpetual easements hereinafter described (the “Easement”). 2. The Easement is over and across that portion(s) of the Owner’s Site determined by Owner in the future to be most suitable and convenient, but which generally runs along the 24 SD-WCSUO6845.11 DRAFT 8/16/2002 southern boundary of Robertson Ranch. Said southern boundary is the same as the northern boundary of the Ranch Carlsbad Mobile Home Park, as shown on parcel one of parcel map No. 17985. 3. The Easement is appurtenant to Robertson Ranch. 4. The Easement consists of the following: A flowage easement for the passage of surface water flows. No direct outlet of a storm drain will be allowed onto the Owner’s Site unless approved by Owner. 5. The parties anticipate that at some time in the future there may be constructed on Robertson Ranch one or more detention basins. The parties contemplate and hereby agree that if such basin(s) is constructed, the easement described in Paragraph 4 above may be used from time to time for discharge of water from such basin(s). 6. Calavera shall exercise its rights in connection with the Easement only to the extent necessary to accomplish the purposes for which the Easement is intended and shall not exercise its rights in connection with the Easement in such a way as to render the Owner’s Site unusable for its intended purposes as a community garden, wash area, waste disposal area and RV Parking Lot (which includes, without limitation, parking for boats, cars, jet skis, RVs, hay wagons and other personal items, subject to any applicable governmental approvals). 7. The Easement is not exclusive. Owner retains the right to make any use of Owner’s Site that does not unreasonably interfere with Calavera’s free use and enjoyment of the Easement. 8. Calavera shall hold harmless, indemnify and defend Owner and any of Owner’s successors, assigns, employees, agents and occupants of Owner’s Site from and against any and all obligations, liabilities, claims, liens, demands, losses, damages, causes of action, judgments, costs and expenses (including reasonable attorneys’ fees and costs) arising out of or relating to Calavera’s use of the Easement or Calavera’s breach of any covenant or agreement contained in this instrument, including without limitation, any and all damages to buildings, structures and landscape improvements located on Owner’s Site arising out of the use of the Easement. 9. All of the provisions, agreements, rights, powers, covenants, conditions and obligations contained in this Agreement, shall be binding upon and shall inure to the benefit of the parties hereto, their respective heirs, successors (by merger, consolidation or otherwise) and assigns, devisees, administrators, representatives, lessees. All provisions of this Agreement shall be covenants running with the land pursuant to applicable law, including but not limited to Section 1468 of the Civil Code of the State of California. 10. This Agreement shall become effective and binding upon recordation of this Agreement in the Office of the County Recorder of San Diego County. 11. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which shall constitute one and the same agreement. 25 SD_OOCSU06845.1 I DRAFT 8/16/2002 IN WITNESS WHEREOF, the parties hereto have executed this instrument on the day and year first above written. CALAVERA HILLS II LLC, a California limited liability company a Delaware limited liability company By its Manager: McMillin Companies, LLC, By: THE CITY OF CARLSBAD, a municipal corporation SD-wCSUO6845.11 26 DRAFT 8/16/2002 STATE OF 1 COUNTY OF ) On , before me, , personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) idare subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Notary Public in and for said County and State STATE OF CALIFORNIA 1 COUNTY OF SAN DIEGO ) 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) idare 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 hishedtheir 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. [SEAL] Notary Public in and for said County and State SD-DOCSUMM5. I1 27 DRAFT 8/16/2002 EXHIBIT “1” TO FLOOD EASEMENT LEGAL DESCRIPTION OWNER’S SITE 28 AUGUST 27, 2002 J.N.: 01-0185 PAGE 1 OF 1 LEGAL DESCRIPTION FOR OPTION PARCEL THAT PORTION OF PARCEL 3 OF ADJUSTMENT PLAT ADJ 01-13 PER CERTIFICATE OF COMPLIANCE CE 01-56 IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, RECORDED AS DOCUMENT 2001-0865066 ON NOVEMBER 28, 2001 IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS : BEGINNING AT ANGLE POINT NO. 19 ON THE SOUTHERLY LINE OF RECORD OF SURVEY NO. 17111 FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY ON AUGUST 24, 2001; THENCE NORTH 77°55'34" WEST (SEE CERTIFICATE OF CORRECTION OF SAID RECORD OF SURVEY RECORDED NOVEMBER 29, 2001 AS DOC. NO. 2001-0869050 IN THE OFFICE OF SAID COUNTY RECORDER) ALONG THE SOUTHERLY LINE OF SAID RECORD OF SURVEY 113.37 FEET; THENCE LEAVING SAID SOUTHERLY LINE NORTH 8'26'47'' WEST 86.33 FEET, NORTH 81"33'13" EAST 45.99 FEET, NORTH 8'26' 47" WEST 85.24 FEET, NORTH 11'57'45'' EAST 71.37 FEET, NORTH 8'26' 47" WEST 152.55 FEET TO THE SOUTHERLY LINE OF FUTURE CANNON ROAD: THENCE EASTERLY ALONG THE SOUTHERLY LINE OF FUTURE CANNON ROAD NORTH 81'33' 13" EAST 335.71 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE TO THE NORTH AND HAVING A RADIUS OF 1451.00 FEET; THENCE EASTERLY ALONG SAID CURVE 429.98 FEET THROUGH A CENTRAL ANGLE OF 16'58'43''; THENCE LEAVING THE SOUTH LINE OF FUTURE CANNON ROAD SOUTH 25'25'30'' EAST 135.56 FEET TO THE SOUTHERLY LINE OF SAID RECORD OF SURVEY; THENCE WESTERLY ALONG SAID SOUTHERLY LINE SOUTH 51'35'15" WEST 67.24 FEET, SOUTH 48"19'13" WEST 404.31 FEET, SOUTH 65'09'20'' WEST 386.97 FEET TO THE POINT OF BEGINNING, ALL AS SHOWN ON THE ATTACHED PLAT FOR CONVENIENCE SAKE. THE AREA OF ABOVE DESCRIBED PROPERTY IS 248,292 S.F. OR 5.70 ACRES. l@l DELTA mmNG/ I .GVGW I R2DU.S I BASIS OF BEARING: COURSE 8 PER RECORD OF SURMY 171 11 BEING S 65'09'20" W w b0.B (POfNTf19 - R0.S 17111) EXHIBIT CONSULT NTS 59M) P.llrur Uulb cwrt IW Cirli PlO"">"9 Enq:dnq PURCHASE PLAT FOR CdsboQ Cdilorn,q 92008 PWC.=d"g 760-W1-17QQ sunoyinq 5.7 ACRE OPTION PARCEL DRAFT 8/16/2002 EXHIBlT “2” TO FLOOD EASEMENT LEGAL DESCRIPTION OF ROBERTSON RANCH 29 SD-DoCSUO6845.1 I ORDER NO. 1285531-6 LEGAL DESCRIPTION THE LAND REFERRED TO HEREIN IS SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF SAN DIEGO, AND IS DESCRIBED AS FOLLOWS: PARCEL 1: THAT PORTION OF LOT E OF RANCHO AGUA HEDIONDA, IN THE CITY OF CARLSBAD, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, NOVEMBER COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 823, 16, 1896, DESCRIBED AS FOLLOWS: THE SOUTHEAST CORNER OF CT 76-12 PER MAP 9935 FILED IN THE OFFICE OF THE BEGINNING AT THE SOUTHWEST CORNER OF RECORD OF SURVEY 16661, BElNG ALSO COUNTY RECORDER OF SAID COUNTY ON JULY 14, 2000 AND DECEMBER 16, 1980 313.13 FEET, SOUTH 73’19’52” EAST 230.87 FEET, SOUTH 4’56’41” EAST 517.19 FEET TO A RESPECTIVELY; THENCE, SOUTH 1’42’35” WEST 1619.75 FEET, SOUTH 63’42’38’’ EAST POINT ON A CURVE CONCAVE TO THE SOUTH AND HAVING A RADIUS OF I45 1 .OO FEET, A RADIAL LINE TO SAID CURVE BEARS SOUTH 28O58’39” EAST; THENCE, NORTHEASTERLY ALONG SAID CURVE 519.94 FEET THROUGH A CENTRAL ANGLE OF 20°31’52”; THENCE, TANGENT TO SAID CURVE NORTH 81°33’13” EAST 648.89 FEET TO A TANGENT CURVE CONCAVE TO THE NORTH AND HAVING A RADIUS OF 1349.00 FEET; THENCE, EASTERLY TANGENT TO SAID CURVE NORTH 53”15’17” EAST 461.71 FEET TO A TANGENT CURVE ALONG SAID CURVE 666.28 FEET THROUGH A CENTRAL ANGLE OF 28”17’56”; THENCE, NORTHEASTERLY ALONG SAID CURVE 32.06 FEET THROUGH A CENTRAL ANGLE OF CONCAVE TO THE NORTH AND HAVING A RADIUS OF 990.00 FEET; THENCE, lo5l’19”; THENCE, TANGENT TO SAID CURVE NORTH 5Io23’58” EAST 60.28 FEET TO A TANGENT CURVE CONCAVE TO THE SOUTH AND HAVING A RADIUS OF 1010.00 FEET; THENCE,’ NORTHEASTERLY ALONG SAID CURVE 32.70 FEET THROUGH A CENTRAL ANGLE OF 1”51’19”; THENCE, TANGENT TO SAID CURVE NORTH 53’15’17” EAST 336.29 FEET TO A TANGENT CURVE CONCAVE TO THE WEST AND HAVING A RADIUS OF 25.00 FEET; THENCE, NORTHERLY ALONG SAID CURVE 39.80 FEET THROUGH A CENTRAL ANGEL OF 91”12’49”; THENCE, TANGENT TO SAID CURVE NORTH 37‘57’32’’ WEST 300.00 FEET TO A TANGENT CURVE CONCAVE TO THE EAST AND HAVING A RADIUS OF 210.00 ANGLE OF 5’42’26”; THENCE, TANGENT TO SAID CURVE NORTH 32’15’06” WEST 80.62 FEET; THENCE, NORTHERLY ALONG SAID CURVE 20.92 FEET THROUGH A CENTRAL FEET TO A TANGENT CURVE CONCAVE TO THE WEST AND HAVING A RADIUS OF 190.00 FEET; THENCE, NORTHERLY ALONG SAID CURVE 18.93 FEET THROUGH A CENTRAL ANGLE OF 5”42’26”; THENCE, TANGENT TO SAID CURVE NORTH 37”57’32” WEST 310.22 FEET TO A TANGENT CURVE CONCAVE TO THE SOUTHWEST AND HAVING A RADIUS OF 1349.00 FEET; THENCE, NORTHWESTERLY ALONG SAID CURVE 288.52 FEET THROUGH A CENTRAL ANGLE OF 12°15’16”; THENCE, TANGENT TO SAID CURVE NORTH 50’12’48’‘ RADIUS OF 1451.00 FEET; THENCE, NORTHWESTERLY ALONG SAID CURVE 480.3 I FEET WEST 100.00 FEET TO A TANGENT CURVE CONCAVE TO THE NORTHEAST AND HAVING A RECORD OF SURVEY 16661, A RADIAL LINE TO SAID CURVE BEARS SOUTH 58’45’10” THROUGH A CENTRAL ANGLE OF 18°57’58” TO A POINT IN THE SOUTH LINE OF SAID WEST; THENCE, NORTH 89O25’37” WEST ALONG THE SOUTH LINE OF SAID RECORD OF SURVEY 16661 1950.97 FEETTOTHE POINT OF BEGN’JING. .- . ORDER NO. 1285531-6 SAID LAND BEING DESCRIBED AS PARCEL I ON CERTIFICATE OF COMPLIANCE RECORDED NOVEMBER 28,2001 AS FILE NO. 2001-0865064 OF OFFICIAL RECORDS. PARCEL 2: THAT PORTION OF LOTS D AND E OF RANCHO AGUA HEDIONDA, IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 823, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY,’NOVEMBER 16, 1896, DESCRIBED AS FOLLOWS: THE SOUTHEAST CORNER ,OF CT 76-12 PER MAP 9935 FILED IN THE OFFICE OF THE BEGMNING AT THE SOUTHWEST CORNER OF RECORD OF SURVEY 16661, BEING ALSO COUNTY RECORDER OF SAID COUNTY ON JULY 14, 2000 AND DECEMBER 16, 1980 RESPECTIVELY; THENCE, ALONG THE SOUTHERLY LINE OF SAID RECORD OF SURVEY CONTINUING ALONG THE SOUTHERLY AND EASTERLY LINE OF SAID RECORD OF SOUTH 89”25’37” EAST 1950.97 FEET TO THE TRUE POINT OF BEGINNING; THENCE, SURVEY SOUTH 89’25’37’’ EAST 129.11 FEET, NORTH 13”44’27” EAST 781.66 FEET, NORTH 2Io34’15” EAST 189.90 FEET, NORTH 14”47’00” EAST 160.15 FEET, NORTH 11’34’22” EAST 65.17 FEET, NORTH 7’12’14” EAST 135.30 FEET, NORTH 14°45’08” EAST 57.12 FEET, NORTH 20’50’34” EAST 126.05 FEET, NORTH 9’43’14” EAST 112.86 FEET, NORTH 1°15’18” EAST 150.28 FEET, SOUTH 89O37’14” EAST 355.61 FEETTO A POINT ON RECORD OF SURVEY 14818 FILED RECORD OF SURVEY 16661 AND CONTINUING SOUTHERLY ALONG THE WEST LINE OF IN THE. OFFICE OF THE COUNTY RECORDER ON MARCH 16,1995; THENCE, LEAVING SAID RECORD OF SURVEY 14818, SOUTH 1°15’25” EAST 304.47 FEET (SOUTH l”11’30” EAST 305.18’ R), SOUTH 18”25’38” EAST, 694.08 FEET (SOUTH 18O19’26” EAST 694.27’ R), THENCE, LEAVING SAID RECORD OF SURVEY 14818 AND CONTINUING SOUTHERLY ALONG THE WEST LINE OF THAT 363.14 ACRES PARCEL AS SHOWN ON RECORD OF. SURVEY 6616 FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY ON NOVEMBER 4, 1965; THENCE, SOUTH 1°05’41” WEST 1271.23 FEET (SOUTH 1°12’02” WEST 1271.40’ R), SOUTH 4’13’22” WEST 963.76 FEET (SOUTH 4°20’50” WEST 963.88’ R), SOUTH 5 l”39’15” WEST 1165.94 FEET 1165.94 FEET (SOUTH 51’47’48” WEST 1165.49’ R), SOUTH 48O19’13” WEST 404.3 I FEET (SOUTH 48’19’29” WEST 404.15’ R), SOUTH 6Y09’20” WEST 386.97 FEET (SOUTH 65”14’32” WEST 387.06’ R), NORTH 77’55’34” WEST 635.12 FEET (NORTH 77’48’20’’ WEST 635.06’ R),’ SOUTH 65’35’13’’ WEST 494.30 FEET (SOUTH 65‘42’27” WEST 494.30’ R), SOUTH 266.73 FEET (SOUTH 30’46’06” WEST 33 1 .55’ TO THE CENTERLINE OF RS 682 R) TO A POINT 39’37’39” WEST 339.77 FEET (SOUTH 39”44’53” WEST 339.77’ R), SOUTH 30”38’52” WEST COUNTY ROAD SURVEY NO. 1800-1 (KNOWN AS EL CAMINO REAL) ACCORDING TO IN A LINE THAT IS PARALLEL TO AND 63.00 FEET NORTHERLY OF THE CENTERLINE OF OFFICIAL PLAT THEREOF ON FILE IN THE OFFICE OF THE COUNTY ENGINEER OF SAN DIEGO COUNTY; THENCE, WESTERLY ALONG SAID NORTHERLY LINE, NORTH 66”42’10” OF A CURVE CONCAVE TO THE NORTH AND HAVING A RADIUS OF 6,855.31 FEET, SAID WEST 13.53 FEET; THENCE, SOUTH 23”17’50” WEST 18.00 FEET ALONG THE RADIAL LINE POINT BEING ALSO ON THE NORTH LINE OF THAT 90 FOOT WIDE STRIP OF LAND SHOWN ON ROAD SURVEY NO. 1800-1; THENCE, WESTERLY ALONG SAID NORTH LINE, AND CURVE THROUGH A CENTRAL ANGLE OF 2°10’51” 260.94 FEET; THENCE, LEAVING SAID NORTH LINE, NORTH 32’44’07” EAST 16.78 FEET, SOUTH 82’48’22” EAST 72.17 FEET, NORTH 23”3 1’32” EAST 109.80 FEET, NORTH 25”38’3 I” EAST 100.08 FEET, NORTH 29’07’38’’ EAST 77.37 FEET, NORTH 3 1’48’12’’ EAST 60.19 FEET, NORTH 42’27’17” EAST 23.56 FEET. NORTH 37’46’23’’ EAST 139.56 FEET, NORTH 24’02’16” EAST 40.09 FEET, NORTH 46’32’58” EAST 281.65 FEET, NORTH 53”49’59 EAST 241.03 FEET, NORTH 67”15’16” EAST 15.60 FEET, SOUTH ORDER NO. 1285531-6 4’56’41’’ EAST 44.65 FEET TO A POINT ON A CURVE CONCAVE TO THE SOUTH AND 2898’39’’ EAST; THENCE, NORTHEASTERLY ALONG SAID CURVE 519.94 FEET THROUGH A CENTRAL ANGLE OF 20°31’52”; THENCE, TANGENT TO SAID CURVE NORTH 81”33’13” EAST 648.89 FEET TO A TANGENT CURVE CONCAVE TO THE.NORTH AND HAVING A RADIUS OF 1349.00 FEET; THENCE, EASTERLY ALONG SAID CURVE 666.28 FEET THROUGH A CENTRAL ANGLE OF 28’17’56”; THENCE, TANGENT TO SAID CURVE NORTH 53°15’17” EAST 461.71 FEET TO A TANGENT CURVE CONCAVE TO THE NORTH AND HAVING A RADIUS OF 990.00 FEET; THENCE, NORTHEASTERLY ALONG SAID CURVE 32.06 FEET THROUGH A CENTRAL ANGLE OF Io51’19”; THENCE, TANGENT TO SAID CURVE NORTH 51‘23’58’’ EAST 60.28 FEET TO A TANGENT CURVE CONCAVE TO THE SOUTH AND HAVING THROUGH A CENTRAL ANGLE OF l”51’19”; THENCE, TANGENT TO SAID CURVE NORTH A RADIUS OF 1010.00 FEET; THENCE, NORTHEASTERLY ALONG SAID CURVE 32.70 FEET 53O15’17” EAST 336.29 FEET TO A TANGENT CURVE CONCAVE TO THE WEST AND HAVNG THROUGH A CENTRAL ANGLE OF 91‘12’49’’; THENCE, TANGENT TO SAID CURVE NORTH A RADIUS OF 25.00 FEET; THENCE, NORTHERLY ALONG SAID CURVE 39.80 FEET 37’57’32” WEST 300.00 FEET TO A TANGENT CURVE CONCAVE TO THE EAST AND HAVING THROUGH A CENTRAL ANGLE OF 5’42’26”; THENCE, TANGENT TO SAID CURVE NORTH A RADIUS OF 210.00 FEET; THENCE, NORTHERLY ALONG SAID CURVE 20.92 FEET 32’15’06” WEST 80.62 FEET TO A TANGENT CURVE CONCAVE TO THE WEST AND HAVING A RADIUS OF 190.00 FEET; THENCE, NORTHERLY ALONG SAID CURVE 18.93 FEET THROUGH A CENTRAL ANGLE OF 5”42’26”; THENCE, TANGENT TO SAID CURVE NORTH 3T57’32” WEST 310.22 FEET TO A TANGENT CURVE CONCAVE TO THE SOUTHWEST AND HAVING A RADIUS OF 1349.00 FEET; THENCE, NORTHWESTERLY ALONG SAID CURVE 288.52 FEET THROUGH A CENTRAL ANGLE OF 12°15’16”; THENCE, TANGENT TO SAID CURVE NORTH 50O12’48” WEST 100.00 FEET TO A TANGENT CURVE CONCAVE TO THE NORTHEAST AND HAVING A RADIUS OF 145 I .OO FEET; THENCE NORTHWESTERLY ALONG SOUTH LINE OF SAID RECORD OF SURVEY 16661, SAID POINT BEING THE TRUE POINT OF SAID CURVE 480.3 1 FEET THROUGH A CENTRAL ANGLE OF 18’57’58’’ TO A POINT IN THE BEGINNING, A RADIAL LINE TO SAID CURVE AT THE TRUE POINT OF BEGINNING BEARS SOUTH 58’45’10” WEST. SAID LAND BEING DESCRIBED AS PARCEL 3 ON CERTIFICATE OF COMPLIANCE RECORDED NOVEMBER 28,2001 AS FILENO. 2001-0865066 OF OFFICIAL RECORDS. -.HAVING A RADIUS OF 1451 .OO FEET, A RADIAL LINE TO SAID CURVE BEARS SOUTH FEBRUARY 05. 2002 3:21 PM MC DRAFT 8/16/2002 EXHIBIT “D” Recording Requested By and When Recorded Mail To: City Clerk 1200 Carlsbad Village Drive Carlsbad, CA 92008 A ‘OVE SPACE FOR RECORDER’S USE ONLY UNDERGROUND FACILITIES EASEMENT AGREEMENT This UNDERGROUND FACILITIES EASEMENT AGREEMENT (“Agreement”) is entered into as of , __ between CALAVERA HILLS I1 LLC, California limited liability, (“Calavera”), and the CITY OF CARLSBAD, a municipal corporation, (“m’) with reference to the following facts: A. Contemporaneously herewith, Owner is purchasing from Calavera the real property located in the City of Carlsbad, California, more particularly described on Exhibit “1” attached hereto (“Owner’s Site”). B. Calavera is the owner of that certain real property located in the City Carlsbad, California, more particularly described on Exhibit “2” attached hereto (“Robertson Ranch”). C. Calavera desires to acquire certain rights in Owner’s Site. AGREEMENT NOW THEREFORE, for valuable consideration, receipt of which is hereby acknowledged, it is agreed as follows: 1. Owner hereby grants to Calavera the non-exclusive perpetual easement hereinafter described (the “Easement”). 2. The Easement is over and across that portion(s) of the Owner’s Site determined by Owner in the future to be most suitable and convenient. However, once the location(s) has 30 SD-DOCSU06845. I I DRAFT 8/16/2002 been determined, the parties hereto agree to amend the Easement to set forth such location(s) with more specificity. 3. The Easement is in gross. 4. The Easement consists of the following: An easement for the installation, maintenance andor operation of storm drainage facilities and water lines; and for pedestrian and vehicular ingress and egress over driveways, roads, sidewalks or other areas as reasonably necessary to provide access for these purposes. 5. Calavera shall exercise its rights in connection with the Easement only to the extent necessary to accomplish the purposes for which the Easement is intended and shall not exercise its rights in connection with the Easement in such a way as to render the Owner’s Site unusable for its intended purposes as a community garden, wash area, waste disposal area and RV Parking Lot (which includes, without limitation, parking for boats, cars, jet skis, RVs, hay wagons and other personal items, subject to any applicable governmental approvals). 6. The Easement is not exclusive. Owner retains the right to make any use of Owner’s Site that does not unreasonably interfere with Calavera’s free use and enjoyment of the Easement. 7. Calavera shall hold harmless, indemnify and defend Owner and any of Owner’s successors, assigns, employees, agents and occupants of Owner’s Site from and against any and all obligations, liabilities, claims, liens, demands, losses, damages, causes of action, judgments, costs and expenses (including reasonable attorneys’ fees and costs) arising out of or relating to Calavera’s use of the Easement or Calavera’s breach of any covenant or agreement contained in this instrument, including without limitation, any and all damages to buildings, structures and landscape improvements located on Owner’s Site arising out of the use of the Easement. 8. All of the provisions, agreements, rights, powers, covenants, conditions and obligations contained in this Agreement, shall be binding upon and shall inure to the benefit of the parties hereto, their respective heirs, successors (by merger, consolidation or otherwise) and assigns, devisees, administrators, representatives, lessees. All provisions of this Agreement shall be covenants running with the land pursuant to applicable law, including but not limited to Section 1468 of the Civil Code of the State of California. 9. This Agreement shall become effective and binding upon recordation of this Agreement in the Office of the County Recorder of San Diego County. 10. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which shall constitute one and the same agreement. SD-DOCSU06845.11 31 DRAFT 8/16/2002 IN WITNESS WHEREOF, the parties hereto have executed this instrument on the day and year first above written. CALAVERA HILLS II LLC, a California limited liability company a Delaware limited liability company By: By its Manager: McMillin Companies, LLC, Its: THE CITY OF CARLSBAD, a municipal corporation By: 32 DRAFT 8/16/2002 STATE OF 1 COUNTY OF 1 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@) islare subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Notary Public in and for said County and State STATE OF CALIFORNIA 1 COUNTY OF SAN DIEGO 1 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) islare subscribed to the within instrument and acknowledged to me that he/she/they executed the same in hislherltheir authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Notary Public in and for said County and State 33 DRAFT 8/I 6/2002 EXHIBIT “1” TO UNDERGROUND FACILITIES EASEMENT LEGAL DESCRIPTION OWNER’S SITE SDUXJCSUO6845.1 I 34 AUGUST 27, 2002 J.N. : 01-0185 PAGE 1 OF 1 LEGAL DESCRIPTION FOR OPTION PARCEL THAT PORTION OF PARCEL 3 OF ADJUSTMENT PLAT ADJ 01-13 PER CERTIFICATE OF COMPLIANCE CE 01-56 IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, RECORDED AS DOCUMENT 2001-0865066 ON NOVEMBER 28, 2001 IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS : BEGINNING AT ANGLE POINT NO. 19 ON THE SOUTHERLY LINE OF RECORD OF SURVEY NO. 17111 FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY ON AUGUST 24, 2001: THENCE NORTH 77O55'34" WEST (SEE CERTIFICATE OF CORRECTION OF SAID RECORD OF SURVEY RECORDED NOVEMBER 29, 2001 AS DOC. NO. 2001-0869050 IN THE OFFICE OF SAID COUNTY RECORDER) ALONG THE SOUTHERLY LINE OF SAID RECORD OF SURVEY 113.37 FEET; THENCE LEAVING SAID SOUTHERLY LINE NORTH 8'26'47'' WEST 86.33 FEET, NORTH 81'33'13'' EAST 49.99 FEET, NORTH 8'26'47'' WEST 85.24 FEET, NORTH 11O57'45" EAST 71.37 FEET, NORTH 8'26'47'' WEST 152.55 FEET TO THE SOUTHERLY LINE OF FUTURE CANNON ROAD: THENCE EASTERLY ALONG THE SOUTHERLY LINE OF FUTURE CANNON ROAD NORTH 81'33' 13" EAST 335.71 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE TO THE NORTH AND HAVING A RADIUS OF 1451.00 FEET; THENCE EASTERLY ALONG SAID CURVE 429.98 FEET THROUGH A CENTRAL ANGLE OF 16"58'43"; THENCE LEAVING THE SOUTH LINE OF FUTURE CANNON ROAD SOUTH 25'25'30'' EAST 135.56 FEET TO THE SOUTHERLY LINE OF SAID RECORD OF SURVEY: THENCE WESTERLY ALONG SAID SOUTHERLY LINE SOUTH 51'39'15" WEST 67.24 FEET, SOUTH 48"19'13" WEST 404.31 FEET, SOUTH 65O09'20" WEST 386.97 FEET TO THE POINT OF BEGINNING, ALL AS SHOWN ON THE ATTACHED PLAT FOR CONVENIENCE SAKE. THE AREA OF ABOVE DESCRIBED PROPERTY IS 248,292 S.F. OR 5.70 ACRES CONSULT 0279 NTS EXHIBIT 59MI Poltrvr Sult. court 100 Ci",, Eng;-ng PURCHASE PLAT FOR Callsbod Colifornr 92008 760-9J1-7700 Piannlng Pi.,C..ti". S"W*Y*". 5.7 ACRE OPTION PARCEL DRAFT 8/16/2002 EXHIBIT “2” TO UNDERGROUND FACILITIES EASEMENT LEGAL DESCRIPTION OF ROBERTSON RANCH 35 ORDER NO. 1285531-6 LEGAL DESCRIPTION THE LAND REFERRED TO HEREIN IS SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF SAN DIEGO, AND IS DESCRIBED AS FOLLOWS: PARCEL 1: THAT PORTION OF LOT E OF RANCHO AGUA HEDIONDA, IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 823, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, NOVEMBER 16, 1896, DESCRlBED AS FOLLOWS: BEGINNING AT THE SOUTHWEST CORNER OF RECORD OF SURVEY 16661, BEING ALSO COUNTY RECORDER OF SAID COUNTY ON JULY 14, 2000 AND DECEMBER 16, 1980 313.13 FEET, SOUTH 73”19’52” EAST 230.87 FEET, SOUTH 4’56’41’’ EAST 517.19 FEET TO A RESPECTIVELY; THENCE, SOUTH IO42’35” WEST 1619.75 FEET, SOUTH 63’42’38” EAST RADIAL LINE TO SAID CURVE BEARS SOUTH 28O58’39” EAST; THENCE, NORTHEASTERLY POINT ON A CURVE CONCAVE TO THE SOUTH AND HAVING A RADIUS OF 1451 .OO FEET, A ALONG SAID CURVE 519.94 FEET THROUGH A CENTRAL ANGLE OF 20’31’52”; THENCE, TANGENT TO SAID CURVE NORTH 81’33’13’’ EAST 648.89 FEET TO A TANGENT CURVE CONCAVE TO THE NORTH AND HAVING A RADIUS OF 1349.00 FEET; THENCE, EASTERLY ALONG SAID CURVE 666.28 FEET THROUGH A CENTRAL ANGLE OF 28‘17’56”; THENCE, TANGENT TO SAID CURVE NORTH 53°15’17” EAST 461.71 FEET TO A TANGENT CURVE CONCAVE TO THE NORTH AND HAVING A RADIUS OF 990.00 FEET; THENCE, NORTHEASTERLY ALONG SAID CURVE 32.06 FEET THROUGH A CENTRAL ANGLE OF Io51’19”; THENCE, TANGENT TO SAID CURVE NORTH 51”23’58 EAST 60.28 FEET TO A TANGENT CURVE CONCAVE TO THE SOUTH AND HAVING A RADIUS OF 1010.00 FEET; THENCE, NORTHEASTERLY ALONG SAID CURVE 32.70 FEET THROUGH A CENTRAL ANGLE OF lo5I’19”; THENCE, TANGENT TO SAID CURVE NORTH 53”15’17” EAST 336.29 FEET TO A TANGENT CURVE CONCAVE TO THE WEST AND HAVING A RADIUS OF 25.00 FEET; THENCE, NORTHERLY ALONG SAID CURVE 39.80 FEET THROUGH A CENTRAL ANGEL OF 91”12’49”, THENCE, TANGENT TO SAID CURVE NORTH 37‘57’32” WEST 300.00 FEET; THENCE, NORTHERLY ALONG SAID CURVE 20.92 FEET THROUGH A CENTRAL FEET TO A TANGENT CURVE CONCAVE TO THE EAST AND HAVING A RADIUS OF 210.00 ANGLE OF 5’42’26”; THENCE, TANGENT TO SAID CURVE NORTH 32’15’06” WEST 80.62 FEET TO A TANGENT CURVE CONCAVE TO THE WEST AND HAVING A RADIUS OF 190.00 FEET; THENCE, NORTHERLY ALONG SAID CURVE 18.93 FEET THROUGH A CENTRAL ANGLE OF 5’42’26”; THENCE, TANGENT TO SAID CURVE NORTH 3797’32” WEST 310.22 FEET TO A TANGENT CURVE CONCAVE TO THE SOUTHWEST AND HAVING A RADIUS OF CENTRAL ANGLE OF 12°15’16”; THENCE, TANGENT TO SAID CURVE NORTH 50°12’48” 1349.00 FEET; THENCE, NORTHWESTERLY ALONG SAID CURVE 288.52 FEET THROUGH A WEST 100.00 FEET TO A TANGENT CURVE CONCAVE TO THE NORTHEAST AND HAVING A THROUGH A CENTRAL ANGLE OF 18’57’58’’ TO A POINT IN THE SOUTH LINE OF SAID RADIUS OF 1451.00 FEET: THENCE, NORTHWESTERLY ALONG SAID CURVE 480.31 FEET RECORD OF SURVEY 16661, A RADIAL LINE TO SAID CURVE BEARS SOUTH 58O45’10” WEST; THENCE, NORTH 89O25’37” WEST ALONG THE SOUTH LINE OF SAID RECORD OF SURVEY 16661 1950.97 FEET TO THE POINT OF BEGINNING. THE SOUTHEAST CORNER OF CT 76-12 PER MAP 9935 FILED IN THE OFFICE OF THE ORDER NO. 1285531-6 SAID LAND BEING DESCRlBED AS PARCEL I ON CERTIFICATE OF COMPLIANCE RECORDED NOVEMBER 28,2001 AS FILE NO. 2001-0865064 OF OFFICIAL RECORDS, PARCEL 2: THAT PORTION OF LOTS D AND E OF RANCHO AGUA HEDIONDA, IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP COUNTY, NOVEMBER 16,1896, DESCRIBED AS FOLLOWS: THEREOF NO. 823, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO BEGINNING AT THE SOUTHWEST CORNER OF RECORD OF SURVEY 16661, BEING ALSO COUNTY RECORDER OF SAID COUNTY ON JULY 14, 2000 AND DECEMBER 16, 1980 THE SOUTHEAST CORNER ,OF CT 76-12 PER MAP 9935 FILED IN THE OFFICE OF THE RESPECTIVELY, THENCE, ALONG THE SOUTHERLY LINE OF SAID RECORD OF SURVEY CONTINUING ALONG THE SOUTHERLY AND EASTERLY LINE OF SAID RECORD OF SOUTH 89’25’37’’ EAST 1950.97 FEET TO THE TRUE POINT OF BEGINNING; THENCE, SURVEY SOUTH 89’25’37’’ EAST 129.11 FEET, NORTH 13”44’27” EAST 781.66 FEET, NORTH 21“34’15” EAST 189.90 FEET, NORTH 14°47’OO” EAST 160.15 FEET, NORTH 1 1’34’22” EAST 20’50’34” EAST 126.05 FEET, NORTH 9’43’14” EAST 112.86 FEET, NORTH 1°15’18” EAST 150.28 65.17 FEET, NORTH 7’12’14” EAST 135.30 FEET, NORTH 14’45’08” EAST 57.12 FEET, NORTH IN THE OFFICE OF THE COUNTY RECORDER ON MARCH 16, 1995; THENCE, LEAVING SAID FEET, SOUTH 89O37’14” EAST 355.61 FEETTO A POINT ON RECORD OF SURVEY 14818 FILED RECORD OF SURVEY 14818, SOUTH 1’15’25’’ EAST 304.47 FEET (SOUTH Io11’3O” EAST RECORD OF SURVEY 16661 AND CONTINUING SOUTHERLY ALONG THE WEST LINE OF 305.18’ R), SOUTH 18‘25’38’’ EAST, 694.08 FEET (SOUTH IS”19’26” EAST 694.27’ R), THENCE, LEAVING SAID RECORD OF SURVEY 14818 AND CONTINUING SOUTHERLY ALONG THE FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY ON NOVEMBER 4, WEST LINE OF THAT 363.14 ACRES PARCEL AS SHOWN ON RECORD 0F.SURVEY 6616 1965; THENCE, SOUTH lo05’41” WEST 1271.23 FEET (SOUTH 1°12’02” WEST 1271.40’ R), SOUTH 4’13’22” WEST 963.76 FEET (SOUTH 4”20’50” WEST 963.88’ R), SOUTH 5I039’I5”WEST 1165.94 FEET 1165.94 FEET (SOUTH 51”47’48” WEST 1165.49’ R), SOUTH 48’19’13’’ WEST 404.31 FEET (SOUTH 48”19’29” WEST 404.15’ R), SOUTH 65’09’20” WEST 386.97 FEET (SOUTH 635.06’ R),’ SOUTH 65’35’13” WEST 494.30 FEET (SOUTH 65‘42’27” WEST 494.30’ R), SOUTH 65‘14’32’’ WEST 387.06’ R), NORTH 77’55’34’’ WEST 635.12 FEET (NORTH 77”48’20” WEST 266.73 FEET (SOUTH 30”46’06” WEST 33 1.55’ TO THE CENTERLINE OF RS 682 R) TO A POINT 39”37’39” WEST 339.77 FEET (SOUTH 39’44’53’’ WEST 339.77’ R), SOUTH 30’38’52” WEST COUNTY ROAD SURVEY NO. 1800-1 (KNOWN AS EL CAMINO REAL) ACCORDING TO IN A LINE THAT IS PARALLEL TO AND 63.00 FEET NORTHERLY OF THE CENTERLINE OF OFFICIAL PLAT THEREOF ON FILE IN THE OFFICE OF THE COUNTY ENGINEER OF SAN DIEGO COUNTY; THENCE, WESTERLY ALONG SAID NORTHERLY LINE, NORTH 66’42’10’’ WEST 13.53 FEET; THENCE, SOUTH 23°17’50” WEST 18.00 FEET ALONG THE RADIAL LINE OF A CURVE CONCAVE TO THE NORTH AND HAVING A RADIUS OF 6,855.31 FEET, SAID POINT BEING ALSO ON THE NORTH LINE OF THAT 90 FOOT WIDE STRJP OF LAND SHOWN ON ROAD SURVEY NO. 1800-1; THENCE, WESTERLY ALONG SAID NORTH LINE, AND CURVE’THROUGH A CENTRAL ANGLE OF 2”10’51” 260.94 FEET; THENCE, LEAVING SAID NORTH LINE, NORTH 32’44’07” EAST 16.78 FEET, SOUTH 82‘48’22” EAST 72.17 FEET, NORTH 23’3 1’32” EAST 109.80 FEET, NORTH 25”38’3 I” EAST 100.08 FEET, NORTH 29’07’38’’ EAST 77.37 FEET, NORTH 3 I”48’12” EAST 60.19 FEET, NORTH 42’27’ 17” EAST 23.56 FEET, NORTH 37’46’23” EAST 139.56 FEET, NORTH 24”02’16” EAST 40.09 FEET, NORTH 46”32’58” EAST 28 I .65 FEET, NORTH 53”49’59” EAST 24 I .03 FEET, NORTH 67” 15’ 16” EAST 15.60 FEET, SOUTH ORDER NO. 1285531-6 -.HAVING A RADIUS OF 1451.00 FEET, A RADIAL LINE TO SAID CURVE BEARS SOUTH 4’56’41” EAST 44.65 FEET TO A POINT ON A CURVE CONCAVE TO THE SOUTH AND 28”58’39” EAST; THENCE, NORTHEASTERLY ALONG SAID CURVE 5 19.94 FEET THROUGH A CENTRAL ANGLE OF 20”31’52”; THENCE, TANGENT TO SAID CURVE NORTH 81O33’13” EAST 648.89 FEET TO A TANGENT CURVE CONCAVE TO THE NORTH AND HAVING A RADIUS OF 1349.00 FEET; THENCE, EASTERLY ALONG SAID CURVE 666.28 FEET THROUGH A CENTRAL ANGLE OF 28‘17’56’’; THENCE, TANGENT TO SAID CURVE NORTH 53”15’17” EAST 461.71 FEET TO A TANGENT CURVE CONCAVE TO THE NORTH AND HAVING A RADIUS OF 990.00 FEET; THENCE, NORTHEASTERLY ALONG SAID CURVE 32.06 FEET THROUGH A CENTRAL ANGLE OF 1”51’19”, THENCE, TANGENT TO SAID CURVE NORTH 51‘23’58” EAST 60.28 FEET TO A TANGENT CURVE CONCAVE TO THE SOUTH AND HAVING THROUGH A CENTRAL ANGLE OF l”51’19”; THENCE, TANGENT TO SAID CURVE NORTH A RADIUS OF 1010.00 FEET; THENCE, NORTHEASTERLY ALONG SAID CURVE 32.70 FEET 53O15’17” EAST 336.29 FEET TO A TANGENT CURVE CONCAVE TO THE WEST AND HAVING THROUGH A CENTRAL ANGLE OF 91”12’49”; THENCE, TANGENT TO SAID CURVE NORTH A RADIUS OF 25.00 FEET; THENCE, NORTHERLY ALONG SAID CURVE 39.80 FEET 37’57’32’’ WEST 300.00 FEET TO A TANGENT CURVE CONCAVE TO THE EAST AND HAVING A RADIUS OF 210.00 FEET; THENCE, NORTHERLY ALONG SAID CURVE 20.92 FEET THROUGH A CENTRAL ANGLE OF 5”42’26”, THENCE, TANGENT TO SAID CURVE NORTH 32O15’06” WEST 80.62 FEET TO A TANGENT CURVE CONCAVE TO THE WEST AND HAVING A RADIUS OF 190.00 FEET; THENCE, NORTHERLY ALONG SAID CURVE 18.93 FEET THROUGH A CENTRAL ANGLE OF 5”42’26”; THENCE, TANGENT TO SAID CURVE NORTH 3737’32” WEST 310.22 FEET TO A TANGENT CURVE CONCAVE TO THE SOUTHWEST AND 288.52 FEET THROUGH A CENTRAL ANGLE OF 12”15’16”, THENCE, TANGENT TO SAID HAVING A RADIUS OF 1349.00 FEET; THENCE, NORTHWESTERLY ALONG SAID CURVE NORTHEAST AND HAVING A RADIUS OF 145 1 .OO FEET; THENCE NORTHWESTERLY ALONG CURVE NORTH 50°12’48” WEST 100.00 FEET TO A TANGENT CURVE CONCAVE TO THE SAID CURVE 480.31 FEET THROUGH A CENTRAL ANGLE OF 18’57’58’’ TO A.POINT IN THE SOUTH LINE OF SAID RECORD OF SURVEY 16661, SAID POINT BEING THE TRUE POINT OF BEGINNING, A RADIAL LINE TO SAID CURVE AT THE TRUE POINT OF BEGINNING BEARS SOUTH 58’45’10” WEST. SAID LAND BEING DESCRIBED AS PARCEL 3 ON CERTIFICATE OF COMPLIANCE RECORDED NOVEMBER 28,2001 AS FILENO. 2001-0865066 OF OFFICIAL RECORDS. FEBRUARY 05.2002 3:21 PM MC DRAFT 8/16/2002 EXHIBIT “E” Recording Requested By and When Recorded Mail To: City Clerk 1200 Carlsbad Village Drive Carlsbad, CA 92008 A: OVE SPACE FOR RECORDER’S USE ONLY LANDSCAPING/SOUND WALL EASEMENT AGREEMENT This LANDSCAPING/SOUND WALL EASEMENT AGREEMENT (“Agreement”) is entered into as of ,- between CALAVERA HILLS I1 LLC, California limited liability, (“Calavera”), and the CITY OF CARLSBAD, a municipal corporation, (“w’) with reference to the following facts: A. Contemporaneously herewith, Owner is purchasing from Calavera the real property located in the City of Carlsbad, California, more particularly described on Exhibit “1” attached hereto (“Owner’s Site”). B. Calavera is the owner of that certain real property located in the City Carlsbad, California, more particularly described on Exhibit “2” attached hereto (“Robertson Ranch”). C. Calavera desires to acquire certain rights in Owner’s Site. AGREEMENT NOW THEREFORE, for valuable consideration, receipt of which is hereby acknowledged, it is agreed as follows: 1. Owner hereby grants to Calavera the non-exclusive perpetual easement hereinafter described (the “Easement”). 2. The Easement is over and across that portion(s) of the Owner’s Site determined by Owner in the future to be most suitable and convenient. However, once the location(s) has 36 SD-WCSW6845.11 DRAFT 8/16/2002 been determined, the parties hereto agree to amend the Easement to set forth such location(s) with more specificity. 3. The Easement is in gross. 4. The Easement consists of the following: An easement for the construction, grading, planting andor maintenance, as applicable, of a berm, sound wall, grass, flowers, shrubs, trees and irrigation, and other landscaping services paralleling Cannon Road, and for pedestrian and vehicular ingress and egress over driveways, roads, sidewalks or other areas as reasonably necessary to provide access for these purposes. 5. Calavera shall exercise its rights in connection with the Easement only to the extent necessary to accomplish the purposes for which the Easement is intended and shall not exercise its rights in connection with the Easement in such a way as to render the Owner’s Site unusable for its intended purposes as a community garden, wash area, waste disposal area and RV Parking Lot (which includes, without limitation, parking for boats, cars, jet skis, RVs, hay wagons and other personal items, subject to any applicable governmental approvals). 6. The Easement is not exclusive. Owner retains the right to make any use of Owner’s Site that does not unreasonably interfere with Calavera’s free use and enjoyment of the Easement. 7. Calavera shall hold harmless, indemnify and defend Owner and any of Owner’s successors, assigns, employees, agents andoccupants of Owner’s Site from and against any and all obligations, liabilities, claims, liens, demands, losses, damages, causes of action, judgments, costs and expenses (including reasonable attorneys’ fees and costs) arising out of or relating to Calavera’s use of the Easement or Calavera’s breach of any covenant or agreement contained in this instrument, including without limitation, any and all damages to buildings, structures and landscape’improvements located on Owner’s Site arising out of the use of the Easement. 8. All of the provisions, agreements, rights, powers, covenants, conditions and obligations contained in this Agreement, shall be binding upon and shall inure to the benefit of the parties hereto, their respective heirs, successors (by merger, consolidation or otherwise) and assigns, devisees, administrators, representatives, lessees. All provisions of this Agreement shall be covenants running with the land pursuant to applicable law, including but not limited to Section 1468 of the Civil Code of the State of California. 9. This Agreement shall become effective and binding upon recordation of this Agreement in the Office of the County Recorder of San Diego County. 10. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which shall constitute one and the same agreement. SD-OOCSUO6845.11 31 DRAFT 8/16/2002 IN WITNESS WHEREOF, the parties hereto have executed this instrument on the day and year first above written. CALAVERA HILLS II LLC, a California limited liability company a Delaware limited liability company By its Manager: McMillin Companies, LLC, By : By : THE CITY OF CARLSBAD, a municipal corporation Its: SD-DOCSUM845.11 38 DRAFT 8/16/2002 STATE OF 1 COUNTY OF ) On , before me, , personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) islare subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Notary Public in and for said [SEAL] County and State STATE OF CALIFORNIA 1 COUNTY OF SAN DIEGO 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) idare subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Notary Public in and for said County and State 39 DRAFT 8/16/2002 EXHIBIT “1” TO LANDSCAPING/SOUND WALL EASEMENT LEGAL DESCRIPTION OWNER’S SITE 40 AUGUST 27, 2002 J.N. : 01-0185 PAGE 1 OF 1 LEGAL DESCRIPTION FOR OPTION PARCEL THAT PORTION OF PARCEL 3 OF ADJUSTMENT PLAT ADJ 01-13 PER CERTIFICATE OF COMPLIANCE CE 01-56 IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, RECORDED AS DOCUMENT 2001-0865066 ON NOVEMBER 28, 2001 IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS : BEGINNING AT ANGLE POINT NO. 19 ON THE SOUTHERLY LINE OF RECORD OF SURVEY NO. 17111 FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY ON AUGUST 24, 2001; THENCE NORTH 77O55'34" WEST (SEE CERTIFICATE OF CORRECTION OF SAID RECORD OF SURVEY RECORDED NOVEMBER 29, 2001 AS DOC. NO. 2001-0869050 IN THE OFFICE OF SAID COUNTY RECORDER) ALONG THE SOUTHERLY LINE OF SAID RECORD OF SURVEY 113.37 FEET; THENCE LEAVING SAID SOUTHERLY LINE NORTH 8'26'47" WEST 86.33 FEET, NORTH 81'33'13'' EAST 49.99 FEET, NORTH a~6147~~ WEST 85.24 FEET, NORTH 11057'45'~ EAST 71.37 FEET, NORTH 8"26' 47" WEST 152.55 FEET TO THE SOUTHERLY LI.NE OF FUTURE CANNON ROAD: THENCE EASTERLY ALONG THE SOUTHERLY LINE OF FUTURE CANNON ROAD NORTH 81"33' 13" EAST 335.71 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE TO THE NORTH AND HAVING A RADIUS OF 1451.00 FEET; THENCE EASTERLY ALONG SAID CURVE 429.98 FEET THROUGH A CENTRAL ANGLE OF 16'58'43''; THENCE LEAVING THE SOUTH LINE OF FUTURE CANNON ROAD SOUTH 25'25'30'' EAST 135.56 FEET TO THE SOUTHERLY LINE OF SAID RECORD OF SURVEY; THENCE WESTERLY ALONG SAID SOUTHERLY LINE SOUTH 51"39' 15" WEST 67.24 FEET, SOUTH 48O19'13" WEST 404.31 FEET, SOUTH 65°09'20" WEST 386.97 FEET TO THE POINT OF BEGINNING, ALL AS SHOWN ON THE ATTACHED PLAT FOR CONVENIENCE SAKE. THE AREA OF ABOVE DESCRIBED PROPERTY IS 248,292 S.F. OR 5.70 ACRES. BASIS OF BEARING: COURSE 8 PER RECORD OF SURVEY 17111 BEING S 65'09'20" W PARCEL 1 r10SERT30N RANCH ADJ. Pu-r O-J--10 FROi7OiY OF ADJ ?UT 01-73 RMZ2TSON RANCH (POINTff9 - R0.S f7111) DRAFT 8/16/2002 EXHIBIT “2” TO LANDSCAPING/SOUND WALL EASEMENT LEGAL DESCRIPTION OF ROBERTSON RANCH 41 SD-DOCSU06845.11 LEGAL DESCRIPTION ORDER NO. 1285531-6 THE LAND REFERRED TO HEREIN IS SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF SAN DIEGO. AND IS DESCRIBED AS FOLLOWS: PARCEL 1: THAT PORTION OF LOT E OF RANCHO AGUA HEDIONDA, IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 823, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, NOVEMBER 16, 1896, DESCRIBED AS FOLLOWS: THE SOUTHEAST CORNER OF CT 76-12 PER MAP 9935 FILED IN THE OFFICE OF THE BEGINNING AT THE SOUTHWEST CORNER OF RECORD OF SURVEY 16661, BEING ALSO COUNTY RECORDER OF SAID COUNTY ON JULY 14, 2000 AND DECEMBER 16, 1980 RESPECTIVELY; THENCE, SOUTH l”42’35” WEST 1519.75 FEET, SOUTH 63’42’38” EAST 313.13 FEET, SOUTH 73’19’52’’ EAST 230.87 FEET, SOUTH 4’56’41” EAST 517.19 FEET TO A POINT ON A CURVE CONCAVE TO THE SOUTH AND HAVING A RADIUS OF I45 1 .OO FEET, A ALONG SAID CURVE 519.94 FEET THROUGH A CENTRAL ANGLE OF 20’31’52”; THENCE, RADIAL LINE TO SAID CURVE BEARS SOUTH 2X058’39” EAST; THENCE, NORTHEASTERLY TANGENT TO SAID CURVE NORTH 8Io33’13” EAST 648.89 FEET TO A TANGENT CURVE CONCAVE TO THE NORTH AND HAVING A RADIUS OF 1349.00 FEET; THENCE, EASTERLY TANGENT TO SAID CURVE NORTH 53°15’17” EAST 461.71 FEET TO A TANGENT CURVE ALONG SAID CURVE 666.28 FEET THROUGH A CENTRAL ANGLE OF 28O17’56”; THENCE, NORTHEASTERLY ALONG SAID CURVE 32.06 FEET THROUGH A CENTRAL ANGLE OF CONCAVE TO THE NORTH AND HAVING A RADIUS OF 990.00 FEET; THENCE, 1’51 ’19”; THENCE, TANGENT TO SAID CURVE NORTH 5Io23’58” EAST 60.28 FEET TO A THENCE, NORTHEASTERLY ALONG SAID CURVE 32.70 FEET THROUGH A CENTRAL TANGENT CURVE CONCAVE TO THE SOUTH AND HAVING A RADIUS OF 1010.00 FEET; ANGLE OF 1”51’19”; THENCE, TANGENT TO SAID CURVE NORTH 53”15’17” EAST 336.29 FEET TO A TANGENT CURVE CONCAVE TO THE WEST AND HAVING A RADIUS OF 25.00 ANGEL OF 91’12’49’’; THENCE, TANGENT TO SAID CURVE NORTH 37O57’32” WEST 300.00 FEET; THENCE, NORTHERLY ALONG SAID CURVE 39.80 FEET THROUGH A CENTRAL FEET TO A TANGENT CURVE CONCAVE TO THE EAST AND HAVING A RADIUS OF 210.00 FEET; THENCE, NORTHERLY ALONG SAID CURVE 20.92 FEET THROUGH A CENTRAL ANGLE OF S”42’26”; THENCE, TANGENT TO SAID CURVE NORTH 32’15’06” WEST 80.62 FEET TO A TANGENT CURVE CONCAVE TO THE WEST AND HAVING A RADIUS OF 190.00 FEET; THENCE, NORTHERLY ALONG SAID CURVE 18.93 FEET THROUGH A CENTRAL ANGLE OF S”42’26”; THENCE, TANGENT TO SAID CURVE NORTH 37’57’32” WEST 310.22 FEET TO A TANGENT CURVE CONCAVE TO THE SOUTHWEST AND HAVING A RADIUS OF CENTRAL ANGLE OF 12°15’16”; THENCE, TANGENT TO SAID CURVE NORTH 50°12’48” 1349.00 FEET; THENCE. NORTHWESTERLY ALONG SAID CURVE 288.52 FEET THROUGH A RADIUS OF 1451 .OO FEET; THENCE, NORTHWESTERLY ALONG SAID CURVE 480.31 FEET WEST 100.00 FEET TO A TANGENT CURVE CONCAVE TO THE NORTHEAST AND HAVING A THROUGH A CENTRAL ANGLE OF 18’57’58’’ TO A POINT IN THE SOUTH LINE OF SAID WEST; THENCE, NORTH 89“25’37” WEST ALONG THE SOUTH LINE OF SAID RECORD OF RECORD OF SURVEY 16661, A RADIAL LINE TO SAID CURVE BEARS SOUTH S8°45’10” SURVEY I666 I 1950.97 FEET TO THE POINT OF BEGINNING. ORDER NO. 1285531-6 SAID LAND BEING DESCRIBED AS PARCEL 1 ON CERTIFICATE OF COMPLIANCE RECORDED NOVEMBER 28,2001 AS FILE NO. 2001-0865064 OF OFFICIAL RECORDS, PARCEL 2: THAT PORTION OF LOTS D AND E OF RANCHO AGUA HEDIONDA, IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP COUNTY, NOVEMBER 16,1896, DESCRIBED AS FOLLOWS: THEREOF NO. 823, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO THE SOUTHEAST CORNER ,OF CT 76-12 PER MAP 9935 FILED IN THE OFFICE OF THE BEGINNING AT THE SOUTHWEST CORNER OF RECORD OF SURVEY 16661, BEING ALSO RESPECTIVELY; THENCE, ALONG THE SOUTHERLY LINE OF SAID RECORD OF SURVEY COUNTY RECORDER OF SAID COUNTY ON JULY 14, 2000 AND DECEMBER 16, 1980 SOUTH 89’25’37’’ EAST 1950.97 FEET TO THE TRUE POINT OF BEGINNING; THENCE, CONTINUING ALONG THE SOUTHERLY AND EASTERLY LINE OF SAID RECORD OF SURVEY SOUTH 89’25’37” EAST 129.11 FEET, NORTH 13’44’27” EAST 781.66 FEET, NORTH 21”34’15” EAST 189.90 FEET, NORTH 14°47’00” EAST 160.15 FEET, NORTH 1174’22” EAST 65.17 FEET, NORTH 7O12’14” EAST 135.30 FEET, NORTH 14’45’08” EAST 57.12 FEET, NORTH 20’50’34” EAST 126.05 FEET, NORTH 9’43’14” EAST 112.86 FEET, NORTH 1°15’18” EAST 150.28 FEET, SOUTH 89’37’14” EAST 355.61 FEETTO A POINT ON RECORD OF SURVEY 14818 FILED RECORD OF SURVEY 16661 AND CONTINUING SOUTHERLY ALONG THE WEST LINE OF IN THE OFFICE OF THE COUNTY RECORDER ON MARCH 16,1995; THENCE, LEAVING SAID RECORD OF SURVEY 14818, SOUTH Io15’25” EAST 304.47 FEET (SOUTH 1°11’30” EAST LEAVING SAID RECORD OF SURVEY 14818 AND CONTMUING SOUTHERLY ALONG THE 305.18’ R), SOUTH 18O25’38” EAST, 694.08 FEET (SOUTH 18’19’26” EAST 694.27’ R), THENCE, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY ON NOVEMBER 4, WEST LINE OF THAT 363.14 ACRES PARCEL AS SHOWN ON RECORD OF. SURVEY 6616 1965; THENCE, SOUTH 1°05’41” WEST 1271.23 FEET (SOUTH 1°12’02” WEST 1271.40’ R), SOUTH 4“13’22” WEST 963.76 FEET (SOUTH 4”20’50” WEST 963.88’ R), SOUTH 51”39’15” WEST 1165.94 FEET 1165.94 FEET (SOUTH 51’47’48” WEST 1165.49’ R), SOUTH 48O19’13” WEST 404.31 FEET (SOUTH 48’19’29” WEST 404.15’ R), SOUTH 65”09’20” WEST 386.97 FEET (SOUTH 65’14’32” WEST 387.06’ R), NORTH 77”55’34” WEST 635.12 FEET (NORTH 77’48’20” WEST 635.06’ R),’ SOUTH 65O35’13” WEST 494.30 FEET (SOUTH 65’42’27” WEST 494.30’ R), SOUTH 266.73 FEET (SOUTH 30O46’06” WEST 33 1 .55’ TO THE CENTERLINE OF RS 682 R) TO A POINT 39”37’39” WEST 339.77 FEET (SOUTH 39”44’53” WEST 339.77’ R), SOUTH 30”38’52” WEST COUNTY ROAD SURVEY NO. 1800-1 (KNOWN AS EL CAMINO REAL) ACCORDING TO IN A LINE THAT IS PARALLEL TO AND 63.00 FEET NORTHERLY OF THE CENTERLINE OF OFFICIAL PLAT THEREOF ON FILE IN THE OFFICE OF THE COUNTY ENGINEER OF SAN DIEGO COUNTY; THENCE, WESTERLY ALONG SAID NORTHERLY LINE, NORTH 66”42’10” OF A CURVE CONCAVE TO THE NORTH AND HAVING A RADIUS OF 6,855.31 FEET, SAID WEST 13.53 FEET; THENCE, SOUTH 23”17’50” WEST 18.00 FEET ALONG THE RADIAL LINE ON ROAD SURVEY NO. 1800-1; THENCE, WESTERLY ALONG SAID NORTH LINE, AND POINT BEING ALSO ON THE NORTH LINE OF THAT 90 FOOT WIDE STRIP OF LAND SHOW CURVE THROUGH A CENTRAL ANGLE OF 2”lO’Sl” 260.94 FEET; THENCE, LEAVING SAID NORTH LINE, NORTH 32’44’07” EAST 16.78 FEET, SOUTH 82’48’22” EAST 72.17 FEET, NORTH 23’31’32” EAST 109.80 FEET, NORTH 25”38’3 I” EAST 100.08 FEET, NORTH 29’07’38” EAST 77.37 FEET, NORTH 31’48’12’’ EAST 60.19 FEET, NORTH 42’27’17’’ EAST 23.56 FEET, NORTH 37’46’23” EAST 139.56 FEET, NORTH 24”02’16” EAST 40.09 FEET, NORTH 46”32’58” EAST 28 1.65 FEET, NORTH 53”49’59” EAST 24 I .03 FEET, NORTH 67“15’ 16” EAST 15.60 FEET. SOUTH .. .. ORDER NO. 1285531-6 4’56’41’’ EAST 44.65 FEET TO A POINT ON A CURVE CONCAVE TO THE SOUTH AND 28”58’39” EAST; THENCE, NORTHEASTERLY ALONG SAID CURVE 5 19.94 FEET THROUGH A CENTRAL ANGLE OF 20’31’52’’; THENCE, TANGENT TO SAID CURVE NORTH 81O33’13” EAST 648.89 FEET TO A TANGENT CURVE CONCAVE TO THE NORTH AND HAVING A RADIUS OF 1349.00 FEET; THENCE, EASTERLY ALONG SAID CURVE 666.28 FEET THROUGH A CENTRAL ANGLE OF 28’17’56“, THENCE, TANGENT TO SAID CURVE NORTH 53”15’17” EAST 461.71 FEET TO A TANGENT CURVE CONCAVE TO THE NORTH AND HAVING A RADIUS OF 990.00 FEET; THENCE, NORTHEASTERLY ALONG SAID CURVE 32.06 FEET THROUGH A CENTRAL ANGLE OF 1‘5 1’19”; THENCE, TANGENT TO SAID CURVE NORTH 5I023’58”EAST 60.28 FEET TO A TANGENT CURVE CONCAVE TO THE SOUTH AND HAVING THROUGH A CENTRAL ANGLE OF 1°51’19”, THENCE, TANGENT TO SAID CURVE NORTH A RADIUS OF 1010.00 FEET; THENCE, NORTHEASTERLY ALONG SAID CURVE 32.70 FEET 53”15’17” EAST 336.29 FEET TO A TANGENT CURVE CONCAVE TO THE WEST AND HAVING THROUGH A CENTRAL ANGLE OF 9 I “I 2’49”; THENCE, TANGENT TO SAID CURVE NORTH A RADIUS OF 25.00 FEET; THENCE, NORTHERLY ALONG SAID CURVE 39.80 FEET 37’57’32” WEST 300.00 FEET TO A TANGENT CURVE CONCAVE TO THE EAST AND HAVING THROUGH A CENTRAL ANGLE OF 5‘42’26“; THENCE, TANGENT TO SAlD CURVE NORTH A RADIUS OF 210.00 FEET; THENCE, NORTHERLY ALONG SAID CURVE 20.92 FEET A RADIUS OF 190.00 FEET; THENCE, NORTHERLY ALONG SAID CURVE 18.93 FEET 32’15’06” WEST 80.62 FEET TO A TANGENT CURVE CONCAVE TO THE WEST AND HAVING THROUGH A CENTRAL ANGLE OF 5’42’26”; THENCE, TANGENT TO SAID CURVE NORTH 37”57’32” WEST 310.22 FEET TO A TANGENT CURVE CONCAVE TO THE SOUTHWEST AND HAVING A RADIUS OF 1349.00 FEET; THENCE, NORTHWESTERLY ALONG SAID CURVE CURVE NORTH 50’12’48” WEST 100.00 FEET TO A TANGENT CURVE CONCAVE TO THE 288.52 FEET THROUGH A CENTRAL ANGLE OF 12’lS’l6”; THENCE, TANGENT TO SAID NORTHEAST AND HAVING A RADIUS OF 1451.00 FEET; THENCE NORTHWESTERLY ALONG SOUTH LINE OF SAID RECORD OF SURVEY 16661, SAID POINT BEING THE TRUE POINT OF SAID CURVE 480.31 FEET THROUGH A CENTRAL ANGLE OF 18°57’58” TO A.POINT IN THE BEGINNING, A RADIAL LINE TO SAID CURVE AT THE TRUE POINT OF BEGMNING BEARS SOUTH 58’45’10” WEST. SAID LAND BEING DESCRIBED AS PARCEL 3 ON CERTIFICATE OF COMPLIANCE -HAVING A RADIUS OF 1451.00 FEET, A RADIAL LINE TO SAID CURVE BEARS SOUTH RECORDED NOVEMBER 28.2001 AS FILENO. 2001-0865066 OF OFFICIAL RECORDS. FEBRUARY 05.2002 3:21 PM MC DRAFT 8/16/2002 EXHIBIT “F” Recording Requested By and When Recorded Mail To: City Clerk 1200 Carlsbad Village Drive Carlsbad, CA 92008 Mail Tax Statements To: A OVE SPACE FOR RECORDER’S USE ONLY GRANT DEED A.P.N. FOR VALUABLE CONSIDERATION, receipt and adequacy of which is hereby achowleged CALAVERA HILLS 11 LLC, a California limited liability company (“Grantor”), hereby grants to the CITY OF CARLSBAD, a municipal corporation (“Grantee”), the real property located in the City of Carlsbad, State of California, more particularly described on Exhibit “1” attached hereto and incorporated herein by this reference, together with all of Grantor’s interest in all rights, privileges, easements and rights-of-way appurtenant to such property (the “Prouerty”). Grantee accepts title to the Property subject to all easements, convanents, conditions, restrictions, reservations, rights-of-way and any other matters approved by Grantee at or before the transfer SD-WCSU06845.11 42 DRAFT 8/16/2002 of the Property, including but not limited to the:. Flood Easement Agreement, LandscapingBound Wall Easement Agreement, and Underground Facilities Easement Agreement, between Grantor and Grantee, recorded contemporaneously herewith. Dated: CALAVERA HILLS II LLC, a California limited liability company a Delaware limited liability company By its Manager: McMillin Companies, LLC, 43 DRAFT 8/16/2002 STATE OF CALIFORNIA ) County of San Diego 1 ) ss. On , before me, Notary Public in and for said County and State, personally appeared personally known to be (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) islare 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. ,a Witness my hand and official seal. Notary Public 44 AUGUST 27, 2002 PAGE 1 OF 1 J.N. : 01-0185 LEGAL DESCRIPTION FOR OPTION PARCEL THAT PORTION OF PARCEL 3 OF ADJUSTMENT PLAT ADJ 01-13 PER CERTIFICATE OF COMPLIANCE CE 01-56 IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, RECORDED AS DOCUMENT 2001-0865066 ON NOVEMBER 28, 2001 IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS : BEGINNING AT ANGLE POINT NO. 19 ON THE SOUTHERLY LINE OF RECORD OF SURVEY NO. 17111 FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY ON AUGUST 24, 2001; THENCE NORTH 77O55'34" WEST (SEE CERTIFICATE OF CORRECTION OF SAID RECORD OF SURVEY RECORDED NOVEMBER 29, 2001 AS DOC. NO. 2001-0869050 IN THE OFFICE OF SAID COUNTY RECORDER) ALONG THE SOUTHERLY LINE OF SAID RECORD OF SURVEY 113.37 FEET; THENCE LEAVING SAID SOUTHERLY LINE NORTH 8'26'47" WEST 86.33 FEET, NORTH 81'33'13'' EAST 49.99 FEET, NORTH 8'26'47'' WEST 85.24 FEET, NORTH 11O57'45" EAST 71.37 FEET, NORTH 8"26'47" WEST 152.55 FEET TO THE SOUTHERLY LINE OF FUTURE CANNON ROAD; THENCE EASTERLY ALONG THE SOUTHERLY LINE OF FUTURE CANNON ROAD NORTH 81'33'13'' EAST 335.71 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE TO THE NORTH AND HAVING A RADIUS OF 1451.00 FEET; THENCE EASTERLY ALONG SAID CURVE 429.98 FEET THROUGH A CENTRAL ANGLE OF 16'58'43''; THENCE LEAVING THE SOUTH LINE OF FUTURE CANNON ROAD SOUTH 25'25' 30" EAST 135.56 FEET TO THE SOUTHERLY LINE OF SAID RECORD OF SURVEY; THENCE WESTERLY ALONG SAID SOUTHERLY LINE SOUTH 51°39'15" WEST 67.24 FEET, SOUTH 48O19'13" WEST 404.31 FEET, SOUTH 65O09'20" WEST 386.97 FEET TO THE POINT OF BEGINNING, ALL AS SHOWN ON THE ATTACHED PLAT FOR CONVENIENCE SAKE. THE AREA OF ABOVE DESCRIBED PROPERTY IS 248,292 S.F. OR 5.70 ACRES. I I I 10 SSItr9'IS' W 6Z24' BASIS OF BEARING: COURSE 8 PER RECORD OF SURVEY 171 11 BEING S 65'09'20" W 1 EXHIBIT C [Purchase Agreement and Escrow Instructions for Beneficiary (RCOA)] 17 SD-DOCSUM222.12 PURCHASE AGREEMENT AND ESCROW INSTRUCTIONS BETWEEN CALAVERA HKLLS 11 LLC AS SELLER AND THE RANCHO CARLSBAD OWNERS ASSOCIATION INC. AS BUYER SD'308449.9 TABLE OF CONTENTS Article ARTICLE 1 . Fundamental Provisions ........................................................................................ 1 ARTICLE 2 . Agreement of Sale ................................................................................................. 2 ARTICLE 3 -Buyer’s Deliveries to Escrow Agent ..................................................................... 2 ARTICLE 4 . Seller’s Deliveries to Escrow Agent ..................................................................... 3 ARTICLE 5 . Conditions Precedent ............................................................................................. 3 ARTICLE 6 . Closing ................................................................................................................... 4 ARTICLE 7 - Prorations, Fees and Costs ..................................................................................... 5 ARTICLE 8 -Distribution of Funds and Documents ................................................................... 6 ARTICLE 9 - Delivery of Documents; Liquidated Damages ...................................................... 6 ARTICLE 10 -No Assignment by Buyer .................................................................................... 8 ARTICLE 11 - Representations and Warranties .......................................................................... 8 ARTICLE 12 - As Is Purchase ..................................................................................................... 9 ARTICLE 13 - Notices ................................................................................................................. 9 ARTICLE 14 -Extent of Escrow Agent’s Responsibilities ....................................................... 10 ARTICLE 15 - Damage and Condemnation .............................................................................. 11 ARTICLE 16 - General Provisions ............................................................................................ 11 TABLE OF EXHIBITS Exhibit Paragraph A . Legal Description of the Property 1.4.1 ................................................................................. B . Covenants. Conditions and Restrictions ............................................................. 3.2.3, 4.1.2 ................................................................................ C . Flood Easement Agreement 3.2.4, 4.1.3 SDU08449.9 1 D. Underground Facilities Easement Agreement ..................................................... 3.2.5, 4.1.4 E. LandscapingBound Wall Easement Agreement ........................................................... 4.1.5 F. Grant Deed .................................................................................................................... 4.1.1 SDU08449.9 11 .. PURCHASE AGREEMENT AND ESCROW INSTRUCTIONS IN CONSIDERATION of the mutual covenants set forth in this Agreement, Calavera Hills II LLC (“Seller”) agrees to sell, and the Rancho Carlsbad Owners Association Inc. (“Buyer”) agrees to buy, the property hereafter described, upon the following terms and conditions. ARTICLE 1 -Fundamental Provisions 1.1 Date of this Ameement. This Agreement is entered into on -. 1.2 Option Ameement. This Agreement is made in relation to Buyer’s exercise of an option to purchase the property described below, as set forth in a certain Option Agreement dated Carlsbad. ,2002 (“Option Agreement”) by and among Seller, Buyer and the City of 1.3 Escrow Agent. Upon execution of this Agreement by both parties, Seller shall establish an escrow (“Escrow”) with as Escrow Agent (“Escrow Agent”). This Agreement shall be used as the basis for the Escrow Agreement with the Escrow Agent. Seller and Buyer shall cooperate in the preparation and execution of Escrow instructions. 1.4 Prouerty. The Property to be purchased and sold pursuant to this Agreement shall be comprised of fee simple title in and to the land more particularly described on Exhibit “A” attached hereto, including the Robertson’s Ranch House located thereon (the “Property”). 1.5 Total Price: 1.6 Cash DeDosit: Buyer shall deposit $25,000 with the Escrow Agent as provided in Article 3 below. 1.7 Balance of the Total Price: 1.8 Escrow Time Limit Date: Thirty (30) days from the date of this Agreement. 1.9 Address for Notices to Seller: Attn: SDL308449.9 1.10 Address for Notices to Buver: Attn: 1.11 Address for Notices to Escrow Aeent: Attn: ~ ARTICLE 2 - Agreement of Sale 2.1 Seller is the owner of fee title to the Property specified in Article 1. 2.2 Seller hereby agrees to sell the Property, and Buyer hereby agrees to buy the Property, for the Total Price specified in Article 1, upon the terms and conditions set forth herein. 2.3 The Total Price shall be payable in cash at the close of escrow. ARTICLE 3 - Buver’s Deliveries to Escrow Aeent 3.1 Concurrently with the execution and delivery hereof, Buyer shall deliver to Escrow Agent the Cash Deposit specified in Article 1. 3.2 Prior to 3:OO p.m. of the next preceding regular business day before the Closing Date, Buyer shall deliver to Escrow Agent each of the following: 3.2.1 The Balance of the Total Price specified in Article 1. 3.2.2 The amount, if any, required of Buyer under Article 7 entitled “Prorations, Fees and Costs.” 3.2.3 A counterpart original of the Declaration of Restrictions (“Declaration of Restrictions”), the form of which is attached as Exhibit “B” hereto, duly executed and acknowledged by Buyer. 3.2.4 A counterpart original of the Flood Easement Agreement, the form of which is attached as Exhibit “C hereto, duly executed and acknowledged by Buyer. SDU084l9.9 2 3.2.5 A counterpart original of the Underground Facilities Easement Agreement, the form of which is attached as Exhibit “D hereto, duly executed and acknowledged by Buyer. 3.2.6 A counterpart original of the LandscapindSound Wall Easement Agreement, the form of which is attached as Exhibit “E’ hereto, duly executed and acknowledged by Buyer. 3.3 The failure of Buyer to make any delivery required above by the date, or within the time, set forth above shall constitute a material breach hereof by Buyer. ARTICLE 4 - Seller’s Deliveries to Escrow Agent 4.1 Prior to the Closing Date, Seller shall deliver to Escrow Agent each of the following: 4.1.1 A grant deed (the “Seller’s Grant Deed”), the form of which is attached as Exhibit “F” hereto, duly executed and acknowledged by Seller, conveying the Property to Buyer. 4.1.2 A counterpart original of the Declaration of Restrictions, the form of which is attached as Exhibit “B” hereto, duly executed and acknowledged by Seller. 4.1.3 A counterpart original of the Flood Easement Agreement, the form of which is attached as Exhibit “C” hereto, duly executed and acknowledged by Seller. 4.1.4 A counterpart original of the Underground Facilities Easement Agreement, the form of which is attached as Exhibit “D’ hereto, duly executed and acknowledged by Seller. 4.1.5 A counterpart original of the LandscapinglSound Wall Easement Agreement, the form of which is attached as Exhibit “E” hereto, duly executed and acknowledged by Seller. 4.2 The failure of Seller to make any delivery required above by the date, or within the time, set forth above shall constitute a material breach hereof by Seller. ARTICLE 5 - Conditions Precedent 5.1 The closing of the escrow is subject to the following condition precedent: 5.1.1 The approval and filing of a final subdivision map or parcel map, as required by the Subdivision Map Act, California Government Code sections 66410, et seq., or such other governmental approval required to create a legal lot for transfer. 5.2 In the event the foregoing condition is not satisfied, either party, provided it is not then in default hereunder, may terminate the escrow and this Agreement by giving a written notice of termination to the other party and Escrow Agent. The giving of such notice shall be optional, not mandatory. No delay in the giving of such notice shall affect the rights hereunder 3 SDU08449.9 of the party giving the same. In the event such notice is given, the provisions of Paragraphs 6.4 and 6.5 shall apply. Notwithstanding the forgoing, if the above condition is not satisfied within the Escrow Time Limit due to delays in the processing of entitlements for Robertson Ranch, the Escrow Time Limit shall automatically be extended until the conclusion of the processing of such entitlements. ARTICLE 6- Closing 6.1 Escrow Agent shall close the escrow on the Escrow Time Limit Date specified in Article 1 (the “Closing Date”) by (i) filing for record the Seller’s Grant Deed and such other documents as may be necessary to procure the ALTA Title Policy (described below), (ii) filing for record the Declaration of Restrictions delivered pursuant to Paragraphs 3.2.3 and 4.1.2, (iii) filing for record the Easement Agreement delivered pursuant to Paragraphs 3.2.4 and 4.1.3, and (iv) delivering funds and documents as set forth in Article 8 entitled “Distribution of Funds and Documents,” WHEN AND ONLY WHEN each of the following conditions has been satisfied 6.1.1 All funds and instruments required by Articles 3 and 4 have been delivered to Escrow Agent. 6.1.2 The condition precedent set forth in Article 5 has been, or upon such closing shall be, satisfied or waived. 6.1.3 Escrow Agent has procured, or is satisfied that it can procure, the Title Company’s ALTA policy of title insurance (the “ALTA Title Policy”) with liability in the amount of the Total Price, insuring that fee title to the Property vests in Buyer subject only to (i) nondelinquent county and city, if any, general and special taxes constituting a lien at the close of escrow, and the lien of supplemental taxes, if any, pursuant to the provisions of Chapter 3.5 of the California Revenue and Taxation Code, (ii j the matters described in Schedule B, Part I, of the ALTA Title Policy, (iii) covenants, conditions, reservations, restrictions, easements and other items appearing as exceptions in the Preliminary Title Report, order number dated , -, or other items shown on the Survey, order number dated , -, that Buyer disapproves, other than the matters reported therein as exceptions (iv) any other lien voluntarily imposed by Buyer as of the close of the escrow. of the Preliminary Title Report, and 6.2 If all of the conditions set forth in Subparagraphs 6.1.1 through 6.1.3 become satisfied at a date earlier than the Closing Date, Escrow Agent shall close the escrow at such earlier date. 6.3 If Escrow Agent cannot close the escrow on or before the Closing Date, it will, nevertheless, close the same when all conditions have been satisfied or waived, notwithstanding that one or more of such conditions has not been timely performed, unless (i) a notice of termination has already been delivered to Escrow Agent in accordance with the provisions of Paragraph 5.2, or (ii) after the Closing Date and prior to the close of the escrow, Escrow Agent receives a written notice to terminate the escrow and this Agreement from a party who, at the time such notice is delivered, is not in default hereunder. The right to terminate the escrow and 4 SDU08449.9 this Agreement under the provisions of clause (ii) of this Paragraph shall be optional, not manda- tory. No delay in the giving of such notice shall affect the rights hereunder of the party giving the same. 6.4 Escrow Agent shall have no liability or responsibility for determining whether or not a party giving a notice of termination is or is not in default hereunder. Within two working days after receipt of such notice from one party, Escrow Agent shall deliver a copy of such notice to the other party. Unless written objection to the termination of the escrow is received by Escrow Agent within 10 days after Escrow Agent so delivers such notice to the other party, (i) Escrow Agent shall forthwith terminate the escrow and return all funds, documents and other items held by it to the party depositing same, except that Escrow Agent may retain such documents and other items usually retained by escrow agents in accordance with standard escrow termination procedures and practices, and (ii) each party shall forthwith pay to Escrow Agent one-half of Escrow Agent’s reasonable escrow termination charges. Notwithstanding the foregoing provisions of this Paragraph, Escrow Agent may deduct from any cash or other funds held by it, a sum sufficient to pay its escrow termination charges in full. If written objection to the termination of the escrow is delivered to Escrow Agent within such 10-day period, Escrow Agent is authorized to hold all funds, documents and other items delivered to it in connection with the escrow and may, in Escrow Agent’s sole discretion, take no further action until otherwise directed, either by the parties’ mutual written instructions or final order of a court of competent jurisdiction. 6.5 Neither (i) the exercise of such right of termination, (ii) delay in the exercise of such right, nor (iii) the return of funds, documents or other items, shall affect the right of the party giving such notice of termination to pursue legal remedies for the other party’s breach of this Agreement (including but not limited to damages for the payment of all or any portion of Escrow Agent’s escrow termination charges). Nor shall (i) the giving of such notice, (ii) the failure to object to termination of the escrow, or (iii) the return of funds, documents or other items affect the right of the other party to pursue other legal remedies for the breach of the party who gives such notice. This Paragraph is subject to the provisions of Paragraph 9.3. ARTICLE 7 - Prorations. Fees and Costs 7.1 Escrow Agent shall prorate k, apportion) between the parties, in cash, to the close of the escrow, only county, city and special district taxes and assessments (if any), based on the latest information available to Escrow Agent. 7.2 All prorations andor adjustments called for in this Agreement shall be made on the basis of a 30-day month, unless otherwise specifically instructed in writing. 7.3 Seller shall pay (i) County Documentary Transfer Tax, in the amount Escrow Agent determines to be required by law, (ii) the premium that the Title Company would have charged for a CLTA Title Policy (“CLTA Title Policy”) on the Property with liability in the amount of the Total Price, (iii) one-half of Escrow Agent’s escrow fee or escrow termination charge, (iv) fees for beneficiaries’ statements, and (v) usual seller’s document drafting and recording charges. 5 SDU08449.9 7.4 Buyer shall pay (i) one-half of Escrow Agent’s escrow fee or escrow termination charge, (ii) the cost of obtaining the ALTA Title Policy over the premium charged for a CLTA Title Policy, (iii) usual buyer’s document drafting and recording charges, and (iv) a $20.00 fee for additional recording charges, if necessary, as provided in Paragraph 14.7. ARTICLE 8 - Distribution of Funds and Documents 8.1 All cash received hereunder by Escrow Agent shall be, until the close of the escrow, kept on deposit with other escrow funds in Escrow Agent’s general escrow account(s), in any state or national bank, and may be transferred to any other such general escrow account(s). 8.2 Escrow Agent shall pay no interest on cash received hereunder by it. 8.3 All disbursements by Escrow Agent shall be made by checks or wire transfers of Escrow Agent. 8.4 Escrow Agent will, at the close of the escrow, pay from funds to which Seller shall be entitled and from funds, if any, deposited by Seller with Escrow Agent, to the obligees thereof, all liens and encumbrances other than those permitted hereby to be shown in the ALTA Title Policy. 8.5 Escrow Agent will cause the County Recorder of San Diego County to mail the Seller’s Grant Deed (and each other document which is herein expressed to be, or by general usage is, recorded) after recordation, to the grantee, beneficiary or person (i) acquiring.rights under said document or (ii) for whose benefit said document was acquired. 8.6 Escrow Agent will, at the close of the escrow, deliver by United States mail (or will hold for personal pickup, if requested) each nonrecorded document received hereunder by Escrow Agent, to the payee or person (i) acquiring rights under said document or (ii) for whose benefit said document was acquired. 8.7 Escrow Agent will, at the close of the escrow, deliver by United States mail (or hold for personal pickup, if requested) (i) to Seller, or order, the cash, plus or minus any appropriate prorations or other charges, and (ii) to Buyer, or order, any excess funds theretofore delivered to Escrow Agent by Buyer. 8.8 Escrow Agent will, at the close of the escrow, deliver to Seller a copy of the Seller’s Grant Deed (conformed to show recording data) and each document recorded to place title in the condition required by this Agreement. ARTICLE 9 -Delivery of Documents; Liauidated Damages 9.1 Escrow Agent shall have no concern with, or liability or responsibility for, this Article. 9.2 If the escrow is terminated for any reason other than a default by Seller, then forthwith upon such termination, (i) Buyer shall deliver to Seller any documents and materials related to the Property previously delivered by Seller to Buyer, and (ii) Buyer shall deliver to 6 SD’J08449.9 Seller, and shall be deemed to have assigned to Seller, without the execution of any additional documents, all of Buyer’s right, title and interest in all studies, reports, governmental applications, permits, maps, plans, specifications and other documents in Buyer’s possession or that it has made or contracted to be made respecting the Property, including without limitation all engineering reports, soil tests, seismic studies, environmental reports, grading, flood control and drainage plans, design renderings, market analyses, feasibility studies, and all correspondence with governmental agencies and their personnel concerning the same. The foregoing assignment of rights by Buyer shall in no way be construed to place upon Seller any obligation or liability to any party preparing or otherwise working on said documents, and Buyer shall take such actions and make such payments as may be necessary to deliver clear title to such documents to Seller, and to preclude any claim of any nature against Seller or the Property for any sums owing on account of the preparation or making of such documents. 9.3 If Buyer fails to complete the purchase of the Property and such failure constitutes a breach of this Agreement, Buyer, by its initials following this Paragraph, and Seller, by its initials following this Paragraph, agree that: IT WOULD BE IMPRACTICABLE OR EXTREMELY DIFFICULT TO FIX, PRIOR TO SIGNING THIS AGREEMENT, THE ACTUAL DAMAGES WHICH WOULD BE SUFFERED BY SELLER IF BUYER FAILS TO PERFORM ITS OBLIGATIONS UNDER THIS AGREEMENT, THEREFORE, THE SUM OF THE ORIGINAL CASH DEPOSIT SHALL CONSTITUTE LIQUIDATED DAMAGES TO SELLER FOR SUCH BREACH BY BUYER. BUYER AND SELLER AGREE THAT THE AFORESAID SUM IS A REASONABLE AMOUNT FOR LIQUIDATED DAMAGES FOR SUCH A BREACH UNDER THE CIRCUMSTANCES EXISTING AT THE TIME THIS AGREEMENT IS ENTERED INTO. FORTHWITH UPON ANY SUCH BREACH BY BUYER, BUYER SHALL EITHER (i) INSTRUCT ESCROW AGENT, IN WRITING, TO PAY SUCH SUM TO SELLER OUT OF FUNDS DEPOSmD WITH ESCROW AGENT BY BUYER AND NOT PREVIOUSLY RELEASED TO SELLER, OR (ii) PAY SUCH SUM TO SELLER. UPON PAYMENT OF SAID SUM TO SELLER, BUYER SHALL BE RELEASED SDU08449.9 FROM ANY FURTHER LIABILITY TO SELLER, AND ESCROW CANCELLATION FEES AND TITLE COMPANY CHARGES SHALL BE PAID BY SELLER. Seller: Buyer: ARTICLE 10 -No Assignment bv Buver 10.1 Buyer shall have no right to assign its rights hereunder without first having obtained Seller’s written consent. 10.2 In the event of any assignment approved in writing by Seller, the assignee shall be and become (i) the grantee of the Seller’s Grant Deed, (ii) the insured owner under the ALTA Title Policy, and (iii) the person(s) having the rights or obligations to (a) deliver statements, (b) deliver documents, (c) give approvals, (d) waive conditions, or (e) make demands, all as may be permitted or required by this Agreement and not then already accomplished by Buyer or another assignee. Notwithstanding any such assignment approved by Seller, Buyer shall not be relieved of liability for any prior or subsequent breach hereof by Buyer or any assignee. ARTICLE 11 - Representations and Warranties 11.1 Escrow Agent shall have no concern with, or liability or responsibility for, this Article. 11.2 In addition to any other express agreements of Seller contained herein, the matters set forth in this Paragraph constitute representations and warranties by Seller which shall be true and correct as of the close of escrow. In the event that, during the period between the execution of this Agreement and the close of escrow, Seller learns, or has reason to believe, that any of the following representations and warranties may cease to be true, Seller hereby covenants to give notice thereof to Buyer immediately: 11.2.1 Brokers. Seller has not engaged or dealt with any broker or finder in connection with the sale contemplated by this Agreement. 11.2.2 Authority. Seller has the legal power, right and authority to enter into this Agreement and to consummate the transaction contemplated hereby. 11.2.3 Condition of Property. During the escrow period and until the close of escrow, unless otherwise agreed to by the parties, Seller shall maintain the Property in its present condition, ordinary wear and tear excepted. 11.2.4 m. Except as set forth herein, there are no leases, subleases, or tenancies in effect related to the Property, or which Seller is aware. 11.3 In addition to any other express agreements of Buyer contained herein, the matters set forth in this Paragraph constitute representations and warranties by Buyer which shall be true and correct as of the close of escrow. In the event that, during the period between the 8 SDU08449.9 execution of this Agreement and the close of escrow, Buyer learns, or has reason to believe, that any of the following representations and warranties may cease to be true, Buyer hereby covenants to give notice thereof to Seller immediately: 11.3.1 Brokers. Buyer has not engaged or dealt with any broker or finder in connection with the sale contemplated by this Agreement. 11.3.2 Authority. Buyer has the legal power, right and authority to enter into this Agreement and to consummate the transaction contemplated hereby. 11.3.3 Propertv Insuection. Buyer has inspected the Property, has analyzed the feasibility of its acquisition and use, and specifically agrees to take the Property as is. If any facts, conditions or circumstances change from those presently known to Buyer, Buyer’s obligations hereunder shall nevertheless remain in full force and effect. 11.3.4 Waiver of Residential Disclosures. Because the Robertson’s Ranch House located on the Property will be restricted from use as a residence, in perpetuity, Buyer knowingly and specifically waives any and all rights to and benefits from the disclosures applicable to the transfer of residential property as provided by California Civil Code sections 1102, s. 11.3.5 Seller’s Representations and Warranties. Seller has made no representations or warranties to Buyer, oral or written, except as specifically set forth in this Agreement or the Option Agreement. ARTICLE 12 - As Is Purchase 12.1 As Is Purchase. As a material inducement to Seller’s execution and delivery of this Agreement and performance of its duties under this Agreement, Buyer, by its initials following this Paragraph, and Seller, by its initials following this Paragraph, agree that: EXCEPT AS OTHERWISE PROVIDED IN THIS AGREEMENT, BUYER HAS AGREED TO ACCEPT POSSESSION OF THE PROPERTY ON THE CLOSING DATE ON AN “AS IS” BASIS. SELLER AND BUYER AGREE THAT THE PROPERTY SHALL BE SOLD “AS IS, WHERE IS, WITH ALL FAULTS” WITH NO RIGHT OF SET-OFF OR REDUCTION IN THE PURCHASE PRICE, AND, EXCEPT AS SET FORTH IN ARTICLE 11 HEREIN, SUCH SALE SHALL BE WITHOUT REPRESENTATION OR WARRANTY OF ANY KIND, EXPRESS OR IMPLIED (INCLUDING WITHOUT LIMITATION, WARRANTY OF INCOm POTENTIAL, USES, MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE), AND SELLER DISCLAIMS AND RENOUNCES ANY SUCH REPRESENTATION OR WARRANTY. Seller: Buyer: ARTICLE 13 -Notices 13.1 Unless otherwise specifically provided herein, all notices, demands or other communications given hereunder shall be in writing and shall be deemed to have been duly 9 SDU08449.9 delivered upon personal delivery, or as of the second business day after mailing by United States mail, postage prepaid, to the Address of the recipient specified in Article 1, or to such other address or person as any party may designate to the others for such purpose in the manner hereinabove set forth. ARTICLE 14 -Extent of Escrow Agent’s Resuonsibilities 14.1 Escrow Agent shall not be liable for any of its acts or omissions unless the same shall constitute negligence or willful misconduct. 14.2 Escrow Agent shall have no obligation to inform any party of any other transaction or of facts within Escrow Agent’s knowledge, even though the same concerns the Property, provided such matters do not prevent Escrow Agent’s compliance with this Agreement. 14.3 Escrow Agent shall not be responsible for (i) the sufficiency or correctness as to form or the validity of any document deposited with Escrow Agent, (ii) the manner of execution of any such deposited document, unless such execution occurs in Escrow Agent’s premises and under its supervision, or (iii) the identity, authority or rights of any person executing any document deposited with Escrow Agent. 14.4 If Escrow Agent receives or becomes aware of conflicting demands or claims with respect to the escrow, the rights of any party hereto, or funds, documents or other items deposited with Escrow Agent, Escrow Agent shall have the right to discontinue any further acts until such conflict is resolved,to its satisfaction, and it shall have the further right to commence or defend any action for the determination of such conflict. The parties shall, immediately after demand therefor by Escrow Agent, reimburse Escrow Agent (in such respective proportions as Escrow Agent shall determine) any reasonable attorneys’ fees and court costs incurred by Escrow Agent pursuant to this Paragraph. 14.5 Any commitment made in writing to Escrow Agent by a bank, trust company, insurance company or savings and loan association, to deliver its check or funds into the escrow may, in the sole discretion of Escrow Agent, be treated as the equivalent of a deposit herein of the amount thereof. Recordation of any instruments delivered through the escrow, if necessary or proper in the issuance of the ALTA Title Policy, is authorized. No examination or insurance as to the amount or payment of personal property taxes is required unless specifically requested. If any party obtains a loan on the Property, then, during the pendency of the escrow, Escrow Agent is authorized to furnish the lender, or anyone acting on its behalf, any information concerning the escrow, including, but not limited to, a certified copy of this Agreement and any amendments hereto. 14.6 Escrow Agent shall not be liable for proration of any supplemental tax bills related to this transaction which may hereafter be issued due to reassessments pursuant to the provisions of Chapter 3.5 of the California Revenue and Taxation Code. 14.7 Escrow holder is authorized and directed to charge Buyer the additional sum of $20.00 for recording fees, in the event that Escrow Agent has not been presented with a SDU08449.9 10 Preliminary Change of Ownership report form prior to the close of escrow, adequate to satisfy the requirements of California Revenue and Taxation Code Sections 480.3 and 480.4. ARTICLE 15 -Damage and Condemnation 15.1 The risk of physical loss to the Property shall be borne by Seller prior to the close of escrow and by Buyer thereafter. In the event that the Property shall be damaged by fire, flood, earthquake or other casualty to the extent that the cost to repair or restore such damage will exceed 5% of the Total Price, Buyer may, at its option, elect not to acquire the Property, by written notice to Seller within 30 days after the date upon which such damage or other casualty occurs. If Buyer does not give such notice, Buyer shall be deemed to have elected to proceed with the purchase and shall close thereon, at which time Seller shall assign to Buyer all of Seller’s interests in all insurance proceeds (if any) relating to such damage. In the event that such damage occurs and Buyer elects not to purchase the Property, then the escrow and this Agreement shall be terminated. 15.2 If the cost to repair any such damage to the Property will not exceed 5% of the Total Price, then Buyer may not terminate this Agreement by reason thereof, but Seller shall assign to Buyer at the closing Seller’s interests in all insurance proceeds (if any) relating to such damage and Buyer shall accept the Property in its condition existing on the date of closing. 15.3 In the event that, prior to the close of escrow, any governmental agency shall commence any action in eminent domain to take any material portion of the Property, Buyer shall have the option either to (i) elect not to acquire the Property, or (ii) complete the acquisition of the Property in which case Buyer shall be entitled to all of the proceeds of such taking, such election to be made by written notice to Seller within 30 days after the date upon which Buyer receives notice of the commencement of such governmental action. Buyer’s failure to give such notice shall be deemed to constitute an election by Buyer to complete the acquisition of the Property. ARTICLE 16 - General Provisions 16.1 Definitions. Unless the context otherwise indicates, whenever used in this Agreement: 16.1.1 The word “cash” means (i) currency, (ii) checks currently dated, payable to Escrow Agent, and honored upon presentation for payment, (iii) amounts credited by wire- transfer into Escrow Agent’s bank account, or (iv) if monies are deposited with Escrow Agent within 20 days of the Closing Date, funds in such form as Escrow Agent in its sole discretion requires. 16.1.2 The word “party” or “parties” means Buyer andor Seller, as the context may require. 16.1.3 The word “escrow” means the escrow created by this Agreement. 16.1.4 The phrase “the opening of the escrow” means the date Escrow Agent signs the “Consent of Escrow Agent” attached hereto. 11 SOU08449.9 16.1.5 The phrase “the close of the escrow” means the date and time at which the Seller’s Grant Deed is filed for record. 16.2 Cautions. Captions in this Agreement are inserted for convenience of reference only and do not define, describe or limit the scope or the intent of this Agreement or any of the terms hereof. 16.3 Exhibits. All exhibits referred to herein and attached hereto are incorporated herein by reference. 16.4 Entire Agreement. This Agreement contains the entire agreement between the parties relating to the transaction contemplated hereby, and all prior or contemporaneous agreements, understandings, representations and statements, oral or written, are merged herein. 16.5 Amendment. No modification, waiver, amendment, discharge or change of this Agreement shall be valid unless the same is in writing and signed by the party against whom the enforcement of such modification, waiver, amendment, discharge or change is or may be sought. 16.6 Enforcement. In the event that either party commences litigation for the judicial interpretation, enforcement, termination, cancellation or rescission hereof, or for damages for the breach hereof, the prevailing party shall be entitled to its reasonable attorneys’ fees and court and other costs incurred. This Agreement shall be construed and enforced in accordance with the laws of the State of California. 16.7 Counterparts. This Agreement may be executed in counterparts, each of which is an original and all of which constitute but one agreement. 16.8 Time is of the Essence. Time is of the essence to this Agreement. 16.9 Survival of Obligations, Representations and Warranties. All obligations referred to herein to be performed at a time or times after the close of the escrow, and all warranties and representations contained herein, shall survive the close of the escrow and the delivery of Seller’s Grant Deed. 16.10 Tax-deferred Exchange. Seller may use the proceeds from the sale of the Property to affect one or more tax deferred exchange under Internal Revenue Code 5 1031. Buyer agrees to accommodate Seller in effecting such tax-deferred exchange. Seller shall have the right, expressly reserved herein, to elect such tax-deferred exchange at any time prior to the Closing Date. Seller and Buyer agree, however, that consummation of the purchase and sale of the Property under this Agreement is not conditioned on such exchange. If Seller elects to make a tax-deferred exchange, Buyer agrees to execute such additional escrow instructions, deeds, documents, agreements, or instruments to effect this exchange, provided that Buyer shall incur no additional costs, expenses, or liabilities in this transaction as a result of or in connection with this exchange. Seller agrees to hold Buyer harmless of any liability, damages, or costs, including reasonable attorney fees, that may arise from Buyer’s participation in such exchange. 16.11 Further Instruments. Each party hereto shall execute, acknowledge and deliver to the other party such further instruments and take such other actions as the other party may 12 SDU08449.9 reasonably request in order to effectuate the purposes and provisions of this Agreement. 16.12 Severability. In the event that any term, covenant, condition, provision or agreement herein contained is held to be invalid, void or otherwise unenforceable by any court of competent jurisdiction, the fact that such term, covenant, condition, provision or agreement is invalid, void or otherwise unenforceable shall in no way affect the validity or enforceability of any other term, covenant, condition, provision or agreement herein contained. 16.13 Successors and Assims. All terms of this Agreement shall be binding upon, inure to the benefit of and be enforceable by, the parties hereto and their respective legal representatives, successors and assigns. IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written. SELLER CALAVERA HILLS I1 LLC, a California limited liability company a Delaware limited liability company By its Manager: McMillin Companies, LLC, BUYER: RANCHO CARLSBAD OWNERS ASSOCIATION INC., a California corporation By: SDU08449.9 13 CONSENT OF ESCROW AGENT The undersigned Escrow Agent hereby agrees to (i) accept the foregoing Agreement, (ii) be escrow agent under said Agreement for the fees therein specified, and (iii) be bound by said Agreement in the performance of its duties as escrow agent; provided, however, that the undersigned shall have no obligations, liability or responsibility under (i) this Consent or otherwise, unless and until said Agreement, fully signed by the parties, has been delivered to the undersigned, or (ii) any amendment to said Agreement unless and until the same shall be accepted by the undersigned in writing. ESCROW AGENT: By : 14 SDL308449.9 EXHIBIT “A” [Legal Description of Property] SDU08449.9 AUGUST 27, 2002 J.N. : 01-0185 PAGE 1 OF 1 LEGAL DESCRIPTION FOR OPTION PARCEL THAT PORTION OF PARCEL 3 OF ADJUSTMENT PLAT ADJ 01-13 PER CERTIFICATE OF COMPLIANCE CE 01-56 IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, RECORDED AS DOCUMENT 2001-0865066 ON NOVEMBER 28, 2001 IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS : BEGINNING AT ANGLE POINT NO. 19 ON THE SOUTHERLY LINE OF RECORD OF SURVEY NO. 17111 FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY ON AUGUST 24, 2001; THENCE NORTH 77'55'34'' WEST (SEE CERTIFICATE OF CORRECTION OF SAID RECORD OF SURVEY RECORDED NOVEMBER 29, 2001 AS DOC. NO. 2001-0869050 IN THE OFFICE OF SAID COUNTY RECORDER) ALONG THE SOUTHERLY LINE OF SAID RECORD OF SURVEY 113.37 FEET; THENCE LEAVING SAID SOUTHERLY LINE NORTH 8"26'47" WEST 86.33 FEET, NORTH 81O33'13" EAST 49.99 FEET, NORTH 8"26'47" WEST 85.24 FEET, NORTH 11°5.7'45" EAST 71.37 FEET, NORTH 8'26'47" WEST 152.55 FEET TO THE SOUTHERLY LINE OF FUTURE CANNON ROAD; THENCE EASTERLY ALONG THE SOUTHERLY LINE OF FUTURE CANNON ROAD NORTH 81'33' 13" EAST 335.71 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE TO THE NORTH AND HAVING A RADIUS OF 1451.00 FEET; THENCE EASTERLY ALONG SAID CURVE 429.98 FEET THROUGH A CENTRAL ANGLE OF 16O58'43"; THENCE LEAVING THE SOUTH LINE OF FUTURE CANNON ROAD SOUTH 25'25' 30" EAST 135.56 FEET TO THE SOUTHERLY LINE OF SAID RECORD OF SURVEY; THENCE WESTERLY ALONG SAID SOUTHERLY LINE SOUTH 51'39' 15" WEST 67.24 FEET, SOUTH 48"19'13" WEST 404.31 FEET, SOUTH 65"09'20" WEST 386.97 FEET TO THE POINT OF BEGINNING, ALL AS SHOWN ON THE ATTACHED PLAT FOR CONVENIENCE SAKE. THE AREA OF ABOVE DESCRIBED PROPERTY IS 248,292 S.F. OR 5.70 ACRES. I I I ADJ. O-J--JO PARCEL -1 BASIS OF BEARING: COURSE 8 PER RECORD OF SURVEY 171 11 BEING S 65'09'20' W EXHIBIT “B” Recording Requested By and When Recorded Mail To: Latham & Watkins 701 “B” Street, Suite 2100 San Diego, California 92101 Attn: Amy G. Nefouse A: nOVE SPACE FOR RECORDER’S USE ONLY DECLARATION OF RESTRICTIONS (FACILITIES RELOCATION PARCEL) THIS DECLARATION OF RESTRICTIONS (FACILITIES RELOCATION PARCEL) (the “Declaration”) is made on. , -7 by CALAVERA HILLS I1 LLC, California limited liability company (“Declarant”). RECITALS A. Pursuant to that certain Purchase Agreement and Escrow Instructions between Declarant and the RANCHO CARLSBAD OWNERS ASSOCIATION INC., a California corporation (“Purchaser”), made as of , 20- (the “Purchase Agreement”), concurrently herewith Declarant is conveying to Purchaser or its assignee the real property located in the City of Carlsbad (the “w), State of California, more particularly described on Exhibit “1” attached hereto and incorporated herein by this reference (the “Purchaser Prouerty”). B. Purchaser intends to develop the Purchaser Property for use as a community garden, wash area, waste disposal area and RV Parking Lot (which includes, without limitation, parking for boats, cars, jet skis, RVs, hay wagons and other personal items, subject to any applicable governmental approvals) (collectively referred to herein as the “Intended Uses’’), to be used by the Rancho Carlsbad Owners Association and its members. C. Declarant owns certain real property located in the City adjacent to the Purchaser Property and more particularly described in Exhibit “2” [Robertson Ranch property] SDU08449.9 attached hereto and incorporated herein by this reference (the “Benefited Property”), and Declarant intends to develop, or convey a portion of the Benefited Property to certain transferees who intend to develop, a master planned, mixed use commercial and residential community on the Benefited Property. D. In connection with the foregoing and in contemplation of the sale of the Purchaser Property to Purchaser, it is the desire and intention of Declarant to restrict the Purchaser Property, so that the Benefited Property will be benefited and each successive owner of all, or part of the Benefited Property, will be benefited. DECLARATION NOW, THEREFORE, Declarant declares that the Purchaser Property, is held and will be held, transferred, encumbered, used, sold, conveyed, leased, and occupied subject to the covenants, restrictions, and limitations set forth in this Declaration, which are established and agreed on for the purpose of enhancing and protecting the value, desirability, and attractiveness of the Benefited Property and the Purchaser Property and every part of such property. All of the restrictions, covenants, and limitations will run with the land and will be binding on all parties having or acquiring any right, title, or interest in the Purchaser Property, or any part thereof, and will inure to the benefit of all of the Benefited Property and the future owners of such property. Each grantee of a conveyance or purchaser under a contract or agreement of sale covering any right, title, or interest in any part of the Purchaser Property, by accepting a deed or a contract of sale or agreement of purchase, accepts the document subject to, and agrees to be bound by, any and all of the restrictions, covenants, and limitations set forth in this Declaration. 1. Use of the Purchaser Prouerty. There shall not be developed any use other than the Intended Uses on the Purchaser Property for the period of the land use approvals issued by the City of Carlsbad for such uses, or a period of 10 years from and after the date of the recordation hereof, whichever is longer. In addition, the owner of the Purchaser Property shall maintain and properly care for the pepper tree located on the Purchaser Property as shown on Exhibit 3 hereto (“Peuuer Tree”), consistent with generally accepted arboriculture practices, and no action shall be taken to harm, destroy, or remove the Pepper Tree, for as long as it remains healthy. 2. Robertson’s Ranch House. The single family home located on the Purchaser Property (the “Robertson’s Ranch House”) shall neither be used as a residence, nor for permanent or temporary human habitation, in perpetuity. 3. Enforcement. Enforcement will be by proceedings at law or in equity against any person or persons violating or attempting to violate any covenant either to restrain violation or to recover damages. Purchaser acknowledges that Declarant would not be willing to sell the Purchaser Property to Purchaser if Purchaser were unwilling to agree to the foregoing restrictions, and that Declarant would not have an adequate remedy in damages if Purchaser were to breach the foregoing covenant. Declarant and its successors and assigns and any Owner of the Benefited Property may specifically enforce the foregoing covenants. SDY308449.9 17 4. Severability. Invalidation of any one of these covenants by judgment or court order will not affect any of the other provisions, which will remain in full force and effect. 5. Covenants to Run With the Land. The Purchaser Property shall be held, developed, conveyed, hypothecated, encumbered, leased, rented, used and occupied subject to the covenants, restrictions and other limitations set forth in this Declaration (collectively, the “Restrictions”). The Restrictions are for the benefit of the Benefited Property. The Restrictions are intended and shall be construed as covenants and conditions running with the land and binding the Purchaser Property and equitable servitudes upon the Purchaser Property and every part thereof. All and each of the Restrictions shall be binding upon and burden all persons having or acquiring any right, title or interest in the Purchaser Property or any part thereof, and their successors and assigns, during their respective periods of ownership, and shall inure to the benefit of the Benefited Property and the fee owners of the Benefited Property, their successors and assigns and each such person, upon the sale or other transfer of its interest shall be released from all obligations arising hereunder. 6. Conditions. Covenants and Restrictions of Purchaser. The parties hereto agree and acknowledge that Purchaser currently owns property neighboring the Purchaser Property which is subject to that certain Enabling Declaration, as amended from time to time, originally recorded on February 19, 1998 as Document # 98-0085695 in the Office of the County Recorder for San Diego County (collectively inclusive of amendments whenever made the “CC&Rs”) and that the CC&Rs will be recorded against the Purchaser Property by Purchaser. In the event of a conflict between the CC&Rs and this Deed Restriction, the CC&Rs shall prevail. I. Modifications. This Declaration shall not be rescinded or modified without the prior written consent of the Declarant for as long as it owns any part of the Benefited Property, and thereafter by the fee owner(s) of the Benefited Property. [SIGNATURES ON FOLLOWING PAGE] SDU08449.9 18 IN WITNESS WHEREOF, the Declarant have executed this instrument as of the date first above written. DECLARANT CALAVERA HILLS II LLC, California limited liability company By its Manager: McMllin Companies, LLC, a Delaware limited liability company By: Name: Title: By: Name: Title: Agreed and accepted by PURCHASER. RANCHO CARLSBAD OWNERS ASSOCIATION INC., a California corporation By : Name: Title: SDU08449.9 19 STATE OF CALIFORNIA 1 County of San Diego ) ) ss. On , before me, Notary Public in and for said County and State, personally appeared personally known to be (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) idare 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. ' ,a Witness my hand and official seal. Notary Public SDU08449.9 20 SDU08449.9 EXHIBIT "1" TO DECLARATION OF RESTRICTIONS DESCRIPTION OF PURCHASER PROPERTY 21 AUGUST 27, 2002 PAGE 1 OF 1 J.N. : 01-0185 LEGAL DESCRIPTION FOR OPTION PARCEL THAT PORTION OF PARCEL 3 OF ADJUSTMENT PLAT ADJ 01-13 ' PER CERTIFICATE OF COMPLIANCE CE 01-56 IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, RECORDED AS DOCUMENT 2001-0865066 ON NOVEMBER 28, 2001 IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS : BEGINNING AT ANGLE POINT NO. 19 ON THE SOUTHERLY LINE OF RECORD OF SURVEY NO. 17111 FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY ON AUGUST 24, 2001; THENCE NORTH 77O55'34" WEST (SEE CERTIFICATE OF CORRECTION OF SAID RECORD OF SURVEY RECORDED NOVEMBER 29, 2001 AS DOC. NO. 2001-0869050 IN THE OFFICE OF SAID COUNTY RECORDER) ALONG THE SOUTHERLY LINE OF SAID RECORD OF SURVEY 113.37 FEET: THENCE LEAVING SAID SOUTHERLY LINE NORTH 8"26'47" WEST 86.33 FEET, NORTH 81O33'13" EAST 49.99 FEET, NORTH 8'26'47'' WEST 85.24 FEET, NORTH 11O57'45" EAST 71.37 FEET, NORTH 8'26'47" WEST 152.55 FEET TO THE SOUTHERLY LINE OF FUTURE CANNON ROAD: THENCE EASTERLY ALONG THE SOUTHERLY LINE OF FUTURE CANNON ROAD NORTH 81"33' 13" EAST 335.71 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE TO THE NORTH AND HAVING A RADIUS OF 1451.00 FEET; THENCE EASTERLY ALONG SAID CURVE 429.98 FEET THROUGH A CENTRAL ANGLE OF 16"58'43"; THENCE LEAVING THE SOUTH LINE OF FUTURE CANNON ROAD SOUTH 25'25'30'' EAST 135.56 FEET TO THE SOUTHERLY LINE OF SAID RECORD OF SURVEY; THENCE WESTERLY ALONG SAID SOUTHERLY LINE SOUTH 51'39'15" WEST 67.24 FEET, SOUTH 48'19'13'' WEST 404.31 FEET, SOUTH 65'09'20'' WEST 386.97 FEET TO THE POINT OF BEGINNING, ALL AS SHOWN ON THE ATTACHED PLAT FOR CONVENIENCE SAKE. THE AREA OF ABOVE DESCRIBED PROPERTY IS 248,292 S.F. OR 5.70 ACRES 9 S2525'3O'E 13.556' IO S5139'fS'W 6Z24' 1 BASIS OF BEARING: COURSE 8 PER RECORD OF SURVEY 171 11 BEING S 65'09'20' W EXHIBIT "2" TO DECLARATION OF RESTRICTIONS BENEFITED PROPERTY SDU08449.9 22 ORDER NO. 1283531-6 LEGAL DESCRIPTION THE LAND REFERRED TO HEREIN IS SITUATED M THE STATE OF CALIFORNIA, COUNTY OF SAN DIEGO. AND IS DESCRIBED AS FOLLOWS: PARCEL 1 : THAT PORTION OF LOT E OF RANCHO AGUA HEDIONDA, IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 823, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, NOVEMBER 16, 1896, DESCRIBED AS FOLLOWS: THE SOUTHEAST CORNER OF CT 76-12 PER MAP 9935 FILED IN THE OFFICE OF THE BEGINNING AT THE SOUTHWEST CORNER OF RECORD OF SURVEY 16661, BEING ALSO COUNTY RECORDER OF SAID COUNTY ON JULY 14, 2000 AND DECEMBER 16, 1980 RESPECTIVELY; THENCE, SOUTH 1’42’35’’ WEST 1619.75 FEET, SOUTH 63’42’38” EAST 313.13 FEET, SOUTH 73O19’52” EAST 230.87 FEET, SOUTH 4‘56’41” EAST 517.19 FEET TO A POINT ON A CURVE CONCAVE TO THE SOUTH AND HAVING A RADIUS OF I45 1 .OO FEET, A RADIAL LINE TO SAID CURVE BEARS SOUTH 2898’39” EAST; THENCE, NORTHEASTERLY ALONG SAID CURVE 519.94 FEET THROUGH A CENTRAL ANGLE OF 20°31’52”; THENCE, TANGENT TO SAID CURVE NORTH 81’33’13” EAST 648.89 FEET TO A TANGENT CURVE CONCAVE TO THE NORTH AND HAVING A RADIUS OF 1349.00 FEET; THENCE, EASTERLY TANGENT TO SAID CURVE NORTH 53O15’17” EAST 461.71 FEET TO A TANGENT CURVE ALONG SAID CURVE 666.28 FEET THROUGH A CENTRAL ANGLE OF 28’17’56’’; THENCE, NORTHEASTERLY ALONG SAID CURVE 32.06 FEET THROUGH A CENTRAL ANGLE OF CONCAVE TO THE NORTH AND HAVING A RADIUS OF 990.00 FEET; THENCE, Io51’19”, THENCE, TANGENT TO SAID CURVE NORTH SI”23’58” EAST 60.28 FEET TO A TANGENT CURVE CONCAVE TO THE SOUTH AND HAVING A RADIUS OF 1010.00 FEET; THENCE, NORTHEASTERLY ALONG SAID CURVE 32.70 FEET THROUGH A CENTRAL ANGLE OF lo51’I9”; THENCE, TANGENT TO SAID CURVE NORTH 53’15’17” EAST 336.29 FEET TO A TANGENT CURVE CONCAVE TO THE WEST AND HAVING A RADIUS OF 25.00 FEET; THENCE, NORTHERLY ALONG SAID CURVE 39.80 FEET THROUGH A CENTRAL ANGEL OF 91’12’49”; THENCE, TANGENT TO SAID CURVE NORTH 37’57’32’’ WEST 300.00 FEET TO A TANGENT CURVE CONCAVE TO THE EAST AND HAVING A RADIUS OF 210.00 ANGLE OF 5’42’26’’; THENCE, TANGENT TO SAID CURVE NORTH 32°15’06” WEST 80.62 FEET; THENCE, NORTHERLY ALONG SAID CURVE 20.92 FEET THROUGH A CENTRAL FEET; THENCE, NORTHERLY ALONG SAID CURVE 18.93 FEET THROUGH A CENTRAL FEET TO A TANGENT CURVE CONCAVE TO THE WEST AND HAVING A RADIUS OF 190.00 ANGLE OF 5’42’26”; THENCE, TANGENT TO SAID CURVE NORTH 37”57’32” WEST 310.22 FEET TO A TANGENT CURVE CONCAVE TO THE SOUTHWEST AND HAVING A RADIUS OF 1349.00 FEET; THENCE, NORTHWESTERLY ALONG SAID CURVE 288.52 FEET THROUGH A CENTRAL ANGLE OF 12”15’16”; THENCE, TANGENT TO SAID CURVE NORTH SO”12’48” WEST 100.00 FEET TO A TANGENT CURVE CONCAVE TO THE NORTHEAST AND HAVING A RADIUS OF 1451.00 FEET; THENCE, NORTHWESTERLY ALONG SAID CURVE 480.31 FEET THROUGH A CENTRAL ANGLE OF 18’57’58’’ TO A POINT IN THE SOUTH LINE OF SAID RECORD OF SURVEY 16661, A RADIAL LINE TO SAID CURVE BEARS SOUTH 58O45’10” WEST; THENCE, NORTH 89O25’37” WEST ALONG THE SOUTH LINE OF SAID RECORD OF SURVEY I666 I 1950.97 FEET TO THE POINT OF BEGINNING. ORDER NO. 1285531-6 SAID LAND BEING DESCRIBED AS PARCEL I ON CERTIFICATE OF COMPLIANCE RECORDED NOVEMBER 28,2001 AS FILE NO. 2001-0865064 OF OFFICIAL RECORDS. PARCEL 2: THAT PORTION OF LOTS D AND E OF RANCHO AGUA HEDIONDA, IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 823, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, NOVEMBER 16,1896, DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWEST CORNER OF RECORD OF SURVEY 16661, BEING ALSO THE SOUTHEAST CORNER .OF CT 76-12 PER MAP 9935 FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY ON JULY 14, 2000 AND DECEMBER 16, 1980 RESPECTIVELY; THENCE, ALONG THE SOUTHERLY LINE OF SAID RECORD OF SURVEY CONTINUING ALONG THE SOUTHERLY AND EASTERLY LINE OF SAID RECORD OF SOUTH 8955’37” EAST 1950.97 FEET TO THE TRUE POINT OF BEGINNING; THENCE, SURVEY SOUTH 89”25’37” EAST 129.1 I FEET, NORTH 13O44’27” EAST 781.66 FEET, NORTH 21”34’15” EAST 189.90 FEET, NORTH 14°47’00” EAST 160.15 FEET, NORTH 11’34’22’’ EAST 20’50’34”EAST 126.05FEET,NORTH9°43’14”EAST112.86FEET,NORTH I015’18”EAST 150.28 65.17 FEET, NORTH 7’12’14’’ EAST 135.30 FEET, NORTH 14°.45’08” EAST 57.12 FEET, NORTH IN THE OFFICE OF THE COUNTY RECORDER ON MARCH 16, 1995; THENCE, LEAVING SAID FEET, SOUTH 89’37’14” EAST 355.61 FEETTO A POINT ON RECORD OF SURVEY 14818 FILED RECORD OF SURVEY 16661 AND CONTINUING SOUTHERLY ALONG THE WEST LINE OF 305.18’ R), SOUTH 18’25’38’’ EAST, 694.08 FEET (SOUTH 18”19’26” EAST 694.27’ R), THENCE, RECORD OF SURVEY 14818, SOUTH l”15’25” EAST 304.47 FEET (SOUTH 1°11’30” EAST LEAVING SAID RECORD OF SURVEY 148 18 AND CONTMUING SOUTHERLY ALONG THE FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY ON NOVEMBER 4, WEST LINE OF THAT 363.14 ACRES PARCEL AS SHOWN ON RECORD 0F.SURVEY 6616 1965; THENCE, SOUTH l“05’41” WEST 1271.23 FEET (SOUTH l012’O2” WEST 1271.40’ R), SOUTH 4’13’22” WEST 963.76 FEET(S0UTH 4”20’50” WEST963.88’ R), SOUTH 51”39’15”WEST 1165.94 FEET 1165.94 FEET (SOUTH 51”47’48” WEST 1165.49’ R), SOUTH 48O19’13” WEST 404.31 FEET (SOUTH 48”19’29” WEST 404.15’ R), SOUTH 65O09’20” WEST 386.97 FEET (SOUTH 65’14’32’’ WEST 387.06’ R), NORTH 77”55’34” WEST 635.12 FEET (NORTH 77’48’20’’ WEST 635.06’ R),’ SOUTH 65’35’13” WEST 494.30 FEET (SOUTH 65”42’27” WEST 494.30’ R), SOUTH 266.73 FEET (SOUTH 30O46’06” WEST 331.55’ TO THE CENTERLINE OF RS 682 R) TO A POINT 39”37’39” WEST 339.77 FEET (SOUTH 39’44’53’’ WEST 339.77’ R), SOUTH 30”38’52” WEST IN A LINE THAT IS PARALLEL TO AND 63.00 FEET NORTHERLY OF THE CENTERLINE OF COUNTY ROAD SURVEY NO. 1800-1 (KNOWN AS EL CAMINO REAL) ACCORDING TO OFFICIAL PLAT THEREOF ON FILE IN THE OFFICE OF THE COUNTY ENGINEER OF SAN DIEGO COUNTY; THENCE, WESTERLY ALONG SAID NORTHERLY LINE, NORTH 66O42’10” OF A CURVE CONCAVE TO THE NORTH AND HAVING A RADIUS OF 6,855.31 FEET, SAID WEST 13.53 FEET; THENCE, SOUTH 23”17’50” WEST 18.00 FEET ALONG THE RADIAL LINE POINT BEING ALSO ON THE NORTH LINE OF THAT 90 FOOT WIDE STRJP OF LAND SHOWN ON ROAD SURVEY NO. 1800-1; THENCE, WESTERLY ALONG SAID NORTH LINE, AND NORTH LINE, NORTH 32’44’07” EAST 16.78 FEET, SOUTH 82’48’22’’ EAST 72.17 FEET, NORTH CURVE THROUGH A CENTRAL ANGLE OF 2”10’51” 260.94 FEET; THENCE, LEAVING SAID 23”31’32” EAST 109.80 FEET, NORTH 25”38’31” EAST 100.08 FEET, NORTH 29O07’38” EAST 77.37 FEET, NORTH 31°48’12” EAST 60.19 FEET, NORTH 42’27’17’’ EAST 23.56 FEET, NORTH 37”46’23” EAST 139.56 FEET, NORTH 24”02’16” EAST 40.09 FEET, NORTH 46”32’58” EAST 28 I .65 FEET, NORTH 53”49’59” EAST 24 I .03 FEET, NORTH 67” 15’ 16’’ EAST 15.60 FEET, SOUTH ORDER NO. 1285531-6 4’56’41” EAST 44.65 FEET TO A POINT ON A CURVE CONCAVE TO THE SOUTH AND --HAVING A RADIUS OF 1451.00 FEET, A RADIAL LINE TO SAID CURVE BEARS SOUTH 2838’35”’ EAST; THENCE, NORTHEASTERLY ALONG SAID CURVE 519.94 FEET THROUGH A CENTRAL ANGLE OF 20°31’52”; THENCE, TANGENT TO SAID CURVE NORTH 81’33’13’’ EAST 648.89 FEET TO A TANGENT CURVE CONCAVE TO THE NORTH AND HAVING A RADIUS OF 1349.00 FEET; THENCE, EASTERLY ALONG SAID CURVE 666.28 FEET THROUGH A CENTRAL ANGLE OF 28O17’56”; THENCE, TANGENT TO SAID CURVE NORTH 53”15’17” EAST 461.71 FEET TO A TANGENT CURVE CONCAVE TO THE NORTH AND HAVING A RADIUS OF 990.00 FEET; THENCE, NORTHEASTERLY ALONG SAID CURVE 32.06 FEET THROUGH A CENTRAL ANGLE OF 1”s 1’19”; THENCE, TANGENT TO SAID CURVE NORTH 5 1 O23’58” EAST 60.28 FEET TO A TANGENT CURVE CONCAVE TO THE SOUTH AND HAVING THROUGH A CENTRAL ANGLE OF lo51’19”; THENCE, TANGENT TO SAID CURVE NORTH A RADIUS OF 1010.00 FEET; THENCE, NORTHEASTERLY ALONG SAID CURVE 32.70 FEET 53O15’17” EAST 336.29 FEET TO A TANGENT CURVE CONCAVE TO THE WEST AND HAVING A RADIUS OF 25.00 FEET; THENCE, NORTHERLY ALONG SAID CURVE 39.80 FEET THROUGH A CENTRAL ANGLE OF 91”12’49”; THENCE, TANGENT TO SAID CURVE NORTH 37’57’32’’ WEST 300.00 FEET TO A TANGENT CURVE CONCAVE TO THE EAST AND HAVING THROUGH A CENTRAL ANGLE OF 5’42’26”; THENCE, TANGENT TO SAID CURVE NORTH A RADIUS OF 210.00 FEET; THENCE, NORTHERLY ALONG SAID CURVE 20.92 FEET A RADIUS OF 190.00 FEET; THENCE, NORTHERLY ALONG SAID CURVE 18.93 FEET 32’15’06” WEST 80.62 FEET TO A TANGENT CURVE CONCAVE TO THE WEST AND HAVING THROUGH A CENTRAL ANGLE OF 5’42’26”; THENCE, TANGENT TO SAID CURVE NORTH 37’57’32” WEST 310.22 FEET TO A TANGENT CURVE CONCAVE TO THE SOUTHWEST AND HAVING A RADIUS OF 1349.00 FEET THENCE, NORTHWESTERLY ALONG SAID CURVE 288.52 FEET THROUGH A CENTRAL ANGLE OF 12°15’16”; THENCE, TANGENT TO SAID CURVE NORTH 50’12’48” WEST 100.00 FEET TO A TANGENT CURVE CONCAVE TO THE NORTHEAST AND HAVING A RADIUS OF 145 1 .OO FEET, THENCE NORTHWESTERLY ALONG SAID CURVE 480.31 FEET THROUGH A CENTRAL ANGLE OF 18’57’58’’ TO A.POINT IN THE SOUTH LINE OF SAID RECORD OF SURVEY 16661, SAID POINT BEING THE TRUE POINT OF BEGINNING, A RADIAL LINE TO SAID CURVE AT THE TRUE POINT OF BEGINNING BEARS SOUTH 58’45’10” WEST. SAID LAND BEING DESCRIBED AS PARCEL 3 ON CERTIFICATE OF COMPLIANCE RECORDED NOVEMBER 28,2001 AS FILENO. 2001-0865066 OF OFFICIAL RECORDS. FEBRUARY OS. 20023:21 PM MC EXHIBIT "3" TO DECLARATION OF RESTRICTIONS SHOWING LOCATION OF PEPPER TREE 23 SDU08449.9 0' 10' 40' - 5' 20' 80' SCALE: 1' = 40' 02002 O'Doy Consultants, Inc. I 1 CONSULT 0'229 NTS 59W Pasteur Court Civil Engineering Suite 100 Planning Corkbod. Colitornia 92008 760-931 -7700 Processing I EXHIBIT “C” Recording Requested By and When Recorded Mail To: Latham & Watkins 701 “B” Street, Suite 2100 San Diego, California 92101 Attn: Amy G. Nefouse A OVE SPACE FOR RECORDER’S USE ONLY FLOOD EASEMENT AGREEMENT This FLOOD EASEMENT AGREEMENT (“Ameement”) is entered into as of I- between CALAVERA HILLS I1 LLC, California limited liability, (“Calavera”), and the RANCHO CARLSBAD OWNERS ASSOCIATION INC., a California corporation, (‘‘Owner”) with reference to the following facts: A. Contemporaneously herewith, Owner is purchasing from Calavera the real property located in the City of Carlsbad, California, more particularly described on Exhibit “1” attached hereto (“Owner’s Site”). B. Calavera is the owner of that certain real property located in the City Carlsbad, California, more particularly described on Exhibit “2” attached hereto (“Robertson Ranch”). C. Calavera desires to acquire certain rights in Owner’s Site. AGREEMENT NOW THEREFORE, for valuable consideration, receipt of which is hereby acknowledged, it is agreed as follows: 1. Owner hereby grants to Calavera the non-exclusive perpetual easements 2. The Easement is over and across that portion(s) of the Owner’s Site hereinafter described (the “Easement”). determined by Calavera in the future to be most suitable and convenient, but which generally runs along the southern boundary of Robertson Ranch. Said southern boundary is the same as 24 SDU08449.9 the northern boundary of the Ranch Carlsbad Mobile Home Park, as shown on parcel one of parcel map No. 17985. 3. The Easement is appurtenant to Robertson Ranch. 4. The Easement consists of the following: A flowage easement for the passage of surface water flows. No direct outlet of a storm drain will be allowed onto the Owner’s Site unless approved by Owner. 5. The parties anticipate that at some time in the future there may be constructed on Robertson Ranch one or more detention basins. The parties contemplate and hereby agree that if such basin(s) is constructed, the easement described in Paragraph 4 above may be used from time to time for discharge of water from such basin(s). 6. Calavera shall exercise its rights in connection with the Easement only to the extent necessary to accomplish the purposes for which the Easement is intended and shall not exercise its rights in connection with the Easement in such a way as to render the Owner’s Site unusable for its intended purposes as a community garden, wash area, waste disposal area and RV Parking Lot (which includes, without limitation, parking for boats, cars, jet skis, RVs, hay wagons and other personal items, subject to any applicable governmental approvals). 7. The Easement is not exclusive. Owner retains the right to make any use of Owner’s Site that does not unreasonably interfere with Calavera’s free use and enjoyment of the Easement. 8. Calavera shall hold harmless, indemnify and defend Owner and any of Owner’s successors, assigns, employees, agents and occupants of Owner’s Site from and against any and all obligations, liabilities, claims, liens, demands, losses, damages, causes of action, judgments, costs and expenses (including reasonable attorneys’ fees and costs) arising out of or relating to Calavera’s use of the Easement or Calavera’s breach of any covenant or agreement contained in this instrument, including without limitation, any and all damages to buildings, structures and landscape improvements located on Owner’s Site arising out of the use of the Easement. 9. In the event of any controversy, claim or dispute relating to this instrument or the breach hereof, the prevailing party shall be entitled to recover from the losing party its reasonable costs, expenses and attorneys’ fees. 10. All of the provisions, agreements, rights, powers, covenants, conditions and obligations contained in this Agreement, shall be binding upon and shall inure to the benefit of the parties hereto, their respective heirs, successors (by merger, consolidation or otherwise) and assigns, devisees, administrators, representatives, lessees. All provisions of this Agreement shall be covenants running with the land pursuant to applicable law, including but not limited to Section 1468 of the Civil Code of the State of California. 11. This Agreement shall become effective and binding upon recordation of this Agreement in the Office of the County Recorder of San Diego County. 25 SD’308449.9 12. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which shall constitute one and the same agreement. IN WITNESS WHEREOF, the parties hereto have executed this instrument on the day and year first above written. CALAVERA HILLS I1 LLC, a California limited liability company a Delaware limited liability company By its Manager: McMillin Companies, LLC, By : Its: RANCHO CARLSBAD OWNERS ASSOCIATION INC., a California corporation SDU08449.9 26 STATE OF ) COUNTY OF ) On , before me, , personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) idare 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, [SEAL1 Notary Public in and for said County and State STATE OF CALIFORNIA 1 COUNTY OF SAN DIEGO 1 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) idare subscribed to the within instrument and acknowledged to me that he/she/they executed the same in hislherltheir authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Notary Public in and for said County and State SDU08449.9 21 SDU08449.9 EXHIBIT “1” TO FLOOD EASEMENT LEGAL DESCRIPTION OWNER’S SITE 28 AUGUST 27, 2002 J.N. : 01-0185 PAGE 1 OF 1 LEGAL DESCRIPTION FOR OPTION PARCEL THAT PORTION OF PARCEL 3 OF ADJUSTMENT PLAT ADJ 01-13 PER CERTIFICATE OF COMPLIANCE CE 01-56 IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, RECORDED AS DOCUMENT 2001-0865066 ON NOVEMBER 28, 2001 IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS : BEGINNING AT ANGLE POINT NO. 19 ON THE SOUTHERLY LINE OF RECORD OF SURVEY NO. 17111 FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY ON AUGUST 24, 2001; THENCE NORTH 71°55' 34" WEST (SEE CERTIFICATE OF CORRECTION OF SAID RECORD OF SURVEY RECORDED NOVEMBER 29, 2001 AS DOC. NO. 2001-0869050 IN THE OFFICE OF SAID COUNTY RECORDER) ALONG THE SOUTHERLY LINE OF SAID RECORD OF SURVEY 113.37 FEET; THENCE LEAVING SAID SOUTHERLY LINE NORTH 8'26'47'' WEST 86.33 FEET, NORTH 81O33'13" EAST 49.99 FEET, NORTH 8'26'47" WEST 85.24 FEET, NORTH 11O57'45" EAST 71.31 FEET, NORTH 8'26'47" WEST 152.55 FEET TO THE SOUTHERLY LINE OF FUTURE CANNON ROAD; THENCE EASTERLY ALONG THE SOUTHERLY LINE OF FUTURE CANNON ROAD NORTH 81'33'13'' EAST 335.71 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE TO THE NORTH AND HAVING A RADIUS OF 1451.00 FEET; THENCE EASTERLY ALONG SAID CURVE 429.98 FEET THROUGH A CENTRAL ANGLE OF 16O58'43"; THENCE LEAVING THE SOUTH LINE OF FUTURE CANNON ROAD SOUTH 25°25'30" EAST 135.56 FEET TO THE SOUTHERLY LINE OF SAID RECORD OF SURVEY; THENCE WESTERLY ALONG SAID SOUTHERLY LINE SOUTH 51'39'15" WEST 67.24 FEET, SOUTH 48"19'13" WEST 404.31 FEET, SOUTH 65°09'20" WEST 386.97 FEET TO THE POINT OF BEGINNING, ALL AS SHOWN ON THE ATTACHED PLAT FOR CONVENIENCE SAKE. THE AREA OF ABOVE DESCRIBED PROPERTY IS 248.292 S.F. DR 5.70 ACRES. BASIS OF BEARING: COURSE 8 PER RECORD OF SURVEY 171 11 BEING S 65'09'20' W EXHIBIT PURCHASE PLAT FOR SDU08449.9 EXHIBIT “2” TO FLOOD EASEMENT LEGAL DESCRIPTION OF ROBERTSON RANCH 29 ORDER NO. 1285531-6 LEGAL DESCRIPTION THE LAND REFERRED TO HEREIN IS SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF SAN DIEGO, AND IS DESCRIBED AS FOLLOWS: PARCEL 1 : THAT PORTION OF LOT E OF RANCHO AGUA HEDIONDA, IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 823, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, NOVEMBER 16,1896, DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWEST CORNER OF RECORD OF SURVEY 16661, BEING ALSO THE SOUTHEAST CORNER OF CT 76-12 PER MAP 9935 FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY ON JULY 14, 2000 AND DECEMBER 16, 1980 RESPECTIVELY; THENCE, SOUTH 1’42’35’’ WEST 1619.75 FEET, SOUTH 63”42’38” EAST 313.13 FEET, SOUTH 73’19’52’’ EAST 230.87 FEET, SOUTH 4’56’41’’ EAST 517.19 FEET TO A POINT ON A CURVE CONCAVE TO THE SOUTH AND HAVING A RADIUS OF I45 1 .OO FEET, A ALONG SAID CURVE 519.94 FEET THROUGH A CENTRAL ANGLE OF ZOO3 1’52”; THENCE, RADIAL LINE TO SAID CURVE BEARS SOUTH 28O58.39” EAST; THENCE, NORTHEASTERLY TANGENT TO SAID CURVE NORTH 81O33’13” EAST 648.89 FEET TO A TANGENT CURVE CONCAVE TO THE NORTH AND HAVING A RADIUS OF 1349.00 FEET; THENCE, EASTERLY TANGENT TO SAID CURVE NORTH 53”15’17” EAST 461.71 FEET TO A TANGENT CURVE ALONG SAID CURVE 666.28 FEET THROUGH A CENTRAL ANGLE OF 28’17’56“; THENCE, NORTHEASTERLY ALONG SAID CURVE 32.06 FEET THROUGH A CENTRAL ANGLE OF CONCAVE TO THE NORTH AND HAVING A RADIUS OF 990.00 FEET; THENCE, 1°51’19”; THENCE, TANGENT TO SAID CURVE NORTH 51O23’58” EAST 60.28 FEET TO A TANGENT CURVE CONCAVE TO THE SOUTH AND HAVING A RADIUS OF 1010.00 FEET; THENCE, NORTHEASTERLY ALONG SAID CURVE 32.70 FEET THROUGH A CENTRAL ANGLE OF Io51’19”; THENCE, TANGENT TO SAID CURVE NORTH 53”15’17” EAST 336.29 FEET TO A TANGENT CURVE CONCAVE TO THE WEST AND HAVING A RADIUS OF 25.00 FEET; THENCE, NORTHERLY ALONG SAID CURVE 39.80 FEET THROUGH A CENTRAL ANGEL OF 91‘12’49”; THENCE, TANGENT TO SAID CURVE NORTH 37’57’32’’ WEST 300.00 FEET TO A TANGENT CURVE CONCAVE TO THE EAST AND HAVING A RADIUS OF 210.00 ANGLE OF 5’42’26”; THENCE, TANGENT TO SAID CURVE NOR.TH 32’15’06” WEST 80.62 FEET; THENCE, NORTHERLY ALONG SAID CURVE 20.92 FEET THROUGH A CENTRAL FEET; THENCE, NORTHERLY ALONG SAID CURVE 18.93 FEET THROUGH A CENTRAL FEET TO A TANGENT CURVE CONCAVE TO THE WEST AND HAVING A RADIUS OF 190.00 ANGLE OF 5’42’26”; THENCE, TANGENT TO SAID CURVE NORTH 37’57’32” WEST 310.22 FEET TO A TANGENT CURVE CONCAVE TO THE SOUTHWEST AND HAVING A RADIUS OF 1349.00 FEET; THENCE, NORTHWESTERLY ALONG SAID CURVE 288.52 FEET THROUGH A CENTRAL ANGLE OF 12°15’16”; THENCE, TANGENT TO SAID CURVE NORTH 50’12’48’‘ WEST 100.00 FEET TO A TANGENT CURVE CONCAVE TO THE NORTHEAST AND HAVING A RADIUS OF 1451.00 FEET; THENCE, NORTHWESTERLY ALONG SAID CURVE 480.31 FEET THROUGH A CENTRAL ANGLE OF 38”57’58” TO A POINT IN THE SOUTH LINE OF SAID RECORD OF SURVEY 16661, A RADIAL LINE TO SAID CURVE BEARS SOUTH 58O45’10” WEST; THENCE, NORTH 89”25’37” WEST ALONG THE SOUTH LINE OF SAID RECORD OF SURVEY I666 I 1950.97 FEET TO THE POINT OF BEGINNING. ORDERNO. 1285531-6 SAID LAND BEING DESCRIBED AS PARCEL I ON CERTIFICATE OF COMPLIANCE RECORDED NOVEMBER 28,2001 AS FILE NO. 2001-0865064 OF OFFICIAL RECORDS. PARCEL 2: THAT PORTION OF LOTS D AND E OF RANCHO AGUA HEDIONDA, IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 823, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, NOVEMBER 16,1896, DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWEST CORNER OF RECORD OF SURVEY 16661, BEING ALSO THE SOUTHEAST CORNER ,OF CT 76-12 PER MAP 9935 FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY ON JULY 14, 2000 AND DECEMBER 16, 1980 RESPECTIVELY; THENCE, ALONG THE SOUTHERLY LINE OF SAID RECORD OF SURVEY CONTINUMG ALONG THE SOUTHERLY AND EASTERLY LINE OF SAID RECORD OF SOUTH 89’25’37” EAST 1950.97 FEET TO THE TRUE POINT OF BEGINNING; THENCE, SURVEY SOUTH 89”25’37” EAST 129.11 FEET, NORTH 13’44’27” EAST 781.66 FEET, NORTH 2 I O34.15” EAST 189.90 FEET, NORTH 14O47’00” EAST 160.15 FEET, NORTH 1 1’34’22’’ EAST 65.17 FEET, NORTH 7”12’14” EAST 135.30 FEET, NORTH 14°45’08” EAST 57.12 FEET, NORTH 20’50’34”EAST 126.05 FEET, NORTH 9O43.14” EAST 112.86 FEET, NORTH Io15’18” EAST 150.28 IN THE OFFICE OF THE COUNTY RECORDER ON MARCH 16,1995; THENCE, LEAVING SAID FEET, SOUTH 89’37’14’’ EAST 355.61 FEET TO A POINT ON RECORD OF SURVEY 14818 FILED RECORD OF SURVEY 14818, SOUTH Io15’25” EAST 304.47 FEET (SOUTH Io11’30” EAST RECORD OF SURVEY 16661 AND CONTINUING SOUTHERLY ALONG THE WEST LINE OF 305.18’ R), SOUTH 18’25’38’’ EAST, 694.08 FEET (SOUTH 18”19’26” EAST 694.27’ R), THENCE, LEAVING SAID RECORD OF SURVEY 14818 AND CONTINUING SOUTHERLY ALONG THE WEST LINE OF THAT 363.14 ACRES PARCEL AS SHOWN ON RECORD 0F.SURVEY 6616 FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY ON NOVEMBER 4, 1965; THENCE, SOUTH I”O5’41” WEST 1271.23 FEET (SOUTH l”12’02” WEST 1271.40’ R), SOUTH 4”13’22” WEST 963.76 FEET (SOUTH 4”20’50” WEST 963.88’ R), SOUTH 51”39’15” WEST 1165.94 FEET 1165.94 FEET (SOUTH 51”47’48” WEST 1165.49’ R), SOUTH 48’19’13” WEST 404.31 FEET (SOUTH 48”19’29” WEST 404.15’ R), SOUTH 65”09’20” WEST 386.97 FEET (SOUTH 65’14’32’’ WEST 387.06’ R), NORTH 77O55’34” WEST 635.12 FEET (NORTH 77’48’20’’ WEST 635.06’ R),’ SOUTH 65’35’13” WEST 494.30 FEET (SOUTH 65‘42’27” WEST 494.30’ R), SOUTH 266.73 FEET (SOUTH 30O46’06” WEST 33 I .55’ TO THE CENTERLINE OF RS 682 R) TO A POINT 39”37’39” WEST 339.77 FEET (SOUTH 39”44’53” WEST 339.77’ R), SOUTH 30”38’52” WEST COUNTY ROAD SURVEY NO. 1800-1 (KNOWN AS EL CAMINO REAL) ACCORDING TO IN A LINE THAT IS PARALLEL TO AND 63.00 FEET NORTHERLY OF THE CENTERLINE OF OFFICIAL PLAT THEREOF ON FILE IN THE OFFICE OF THE COUNTY ENGINEER OF SAN DIEGO COUNTY; THENCE, WESTERLY ALONG SAID NORTHERLY LINE, NORTH 66’42’10” WEST 13.53 FEET; THENCE, SOUTH 23”17’50” WEST 18.00 FEET ALONG THE RADIAL LNE OF A CURVE CONCAVE TO THE NORTH AND HAVING A RADIUS OF 6,855.31 FEET, SAID POINT BEMG ALSO ON THE NORTH LINE OF THAT 90 FOOT WIDE STRIP OF LAND SHOWN ON ROAD SURVEY NO. 1800-1; THENCE, WESTERLY ALONG SAID NORTH LINE, AND CURVE THROUGH A CENTRAL ANGLE OF 2°10’51” 260.94 FEET; THENCE, LEAVING SAID NORTH LINE, NORTH 32O44’07” EAST 16.78 FEET, SOUTH 82’48’22” EAST 72.17 FEET, NORTH 23”31’32” EAST 109.80 FEET, NORTH 25O38’31” EAST 100.08 FEET, NORTH 29”07!38” EAST 77.37 FEET, NORTH 31°48’1?” EAST 60.19 FEE,T, NORTH 42’27’17” EAST 23.56 FEET, NORTH 37’46’23” EAST 139.56 FEET, NORTH 24O02’16” EAST 40.09 FEET, NORTH 46’32’58” EAST 28 I .65 FEET, NORTH 53O49’59’‘ EAST 24 I .03 FEET, NORTH 67”15’ 16” EAST 15.60 FEET, SOUTH ORDER NO. 1285531-6 4O56’41” EAST 44.65 FEET TO A POINT ON A CURVE CONCAVE TO THE SOUTH AND -.HAVING A RADIUS OF 1451.00 FEET, A RADIAL LINE TO SAID CURVE BEARS SOUTH 2838’39” EAST; THENCE, NORTHEASTERLY ALONG SAID CURVE 519.94 FEET THROUGH A CENTRAL ANGLE OF 20”31’52”; THENCE, TANGENT TO SAID CURVE NORTH 8173’13’’ EAST 648.89 FEET TO A TANGENT CURVE CONCAVE TO THE.NORTH AND HAVING A A CENTRAL ANGLE OF 28’17’56”; THENCE, TANGENT TO SAID CURVE NORTH 53°15’17” RADIUS OF 1349.00 FEET; THENCE, EASTERLY ALONG SAID CURVE 666.28 FEET THROUGH RADIUS OF 990.00 FEET; THENCE, NORTHEASTERLY ALONG SAID CURVE 32.06 FEET EAST 461.71 FEET TO A TANGENT CURVE CONCAVE TO THE NORTH AND HAVING A 51’23’58’’ EAST 60.28 FEET TO A TANGENT CURVE CONCAVE TO THE SOUTH AND HAVING THROUGH A CENTRAL ANGLE OF 1°51’19”; THENCE, TANGENT TO SAID CURVE NORTH A RADIUS OF 1010.00 FEET; THENCE, NORTHEASTERLY ALONG SAID CURVE 32.70 FEET THROUGH A CENTRAL ANGLE OF 1”51’19”; THENCE, TANGENT TO SAID CURVE NORTH 53°15’17” EAST 336.29 FEET TO A TANGENT CURVE CONCAVE TO THE WEST AND HAVING A RADIUS OF 25.00 FEET; THENCE, NORTHERLY ALONG SAID CURVE 39.80 FEET THROUGH A CENTRAL ANGLE OF 91”12’49”; THENCE, TANGENT TO SAID CURVE NORTH 37’57’32” WEST 300.00 FEET TO A TANGENT CURVE CONCAVE TO THE EAST AND HAVING A RADIUS OF 210.00 FEET; THENCE, NORTHERLY ALONG SAID CURVE 20.92 FEET THROUGH A CENTRAL ANGLE OF S”42’26”; THENCE, TANGENT TO SAID CURVE NORTH 32”15’06” WEST 80.62 FEET TO A TANGENT CURVE CONCAVE TO THE WEST AND HAVING THROUGH A CENTRAL ANGLE OF 5’42’26”; THENCE, TANGENT TO SAID CURVE NORTH A RADIUS OF 190.00 FEET; THENCE, NORTHERLY ALONG SAID CURVE 18.93 FEET 37’57’32” WEST 310.22 FEET TO A TANGENT CURVE CONCAVE TO THE SOUTHWEST AND HAVING A RADIUS OF 1349.00 FEET; THENCE, NORTHWESTERLY ALONG SAID CURVE CURVE NORTH 50’12’48” WEST 100.00 FEET TO A TANGENT CURVE CONCAVE TO THE 288.52 FEET THROUGH A CENTRAL ANGLE OF 12°15’16”; THENCE, TANGENT TO SAID NORTHEAST AND HAVING A RADIUS OF 145 1 .OO FEET; THENCE NORTHWESTERLY ALONG SAID CURVE 480.31 FEET THROUGH A CENTRAL ANGLE OF 18’57’58’’ TO A.POINT IN THE SOUTH LINE OF SAID RECORD OF SURVEY 16661. SAID POINT BEING THE TRUE POINT OF SAID LAND BEING DESCRIBED AS PARCEL 3 ON CERTIFICATE OF COMPLIANCE RECORDED NOVEMBER 28,2001 AS FILE NO. 2001 -0865066 OF OFFICIAL RECORDS. FEBRUARY 05. 2002 3:2 I PM MC EXHIBIT “D” Recording Requested By and When Recorded Mail To: Latham & Watkins 701 “B” Street, Suite 2100 San Diego, California 92101 Attn: Amy G. Nefouse Al OW SPACE FOR RECORDER’S USE ONLY UNDERGROUND FACILITIES EASEMENT AGREEMENT This UNDERGROUND FACILITIES EASEMENT AGREEMENT (“Agreement”) is entered into as of ,- between CALAVERA HILLS I1 LLC, California limited liability, (“Calavera”), and the RANCHO CARLSBAD OWNERS ASSOCIATION INC., a California corporation, (“w’) with reference to the following facts: A. Contemporaneously herewith, Owner is purchasing from Calavera the real property located in the City of Carlsbad, California, more particularly described on Exhibit “1” attached hereto (“Owner’s Site”). B. I Calavera is the owner of that certain real property located in the City Carlsbad, California, more particularly described on Exhibit “2” attached hereto (“Robertson Ranch”). C. Calavera desires to acquire certain rights in Owner’s Site. AGREEMENT NOW THEREFORE, for valuable consideration, receipt of which is hereby acknowledged, it is agreed as follows: 1. Owner hereby grants to Calavera the non-exclusive perpetual easement hereinafter described (the “Easement”). 2. The Easement is over and across that portion(s) of the Owner’s Site determined by Calavera in the future to be most suitable and convenient. However, once the location(s) has SDU08449.9 30 been determined, the parties hereto agree to amend the Easement to set forth such location(s) with more specificity. 3. The Easement is in gross. 4. The Easement consists of the following: An easement for the installation, maintenance and/or operation of storm drainage facilities and water lines; and for pedestrian and vehicular ingress and egress over dnveways, roads, sidewalks or other areas as reasonably necessary to provide access for these purposes. 5. Calavera shall exercise its rights in connection with the Easement, including but not limited to its determination of the location of the Easement, only to the extent necessary to accomplish the purposes for which the Easement is intended and shall not exercise its rights in connection with the Easement in such a way as to render the Owner’s Site unusable for its intended purposes as a community garden, wash area, waste disposal area and RV Parking Lot (which includes, without limitation, parking for boats, cars, jet skis, RVs, hay wagons and other personal items, subject to any applicable governmental approvals). 6. The Easement is not exclusive. Owner retains the right to make any use of Owner’s Site that does not unreasonably interfere with Calavera’s free use and enjoyment of the Easement. 7. In the event of any controversy, claim or dispute relating to this instrument or the breach hereof, the prevailing party shall be entitled to recover from the losing party its reasonable costs, expenses and attorneys’ fees. 8. Calavera shall hold harmless, indemnify and defend Owner and any of Owner’s successors, assigns, employees, agents and occupants of Owner’s Site from and against any and all obligations, liabilities, claims, liens, demands, losses, damages, causes of action, judgments, costs and expenses (including reasonable attorneys’ fees and costs) arising out of or relating to Calavera’s use of the Easement or Calavera’s breach of any covenant or agreement contained in this instrument, including without limitation, any and all damages to buildings, structures and landscape improvements located on Owner’s Site arising out of the use of the Easement. 9. All of the provisions, agreements, rights, powers, covenants, conditions and obligations contained in this Agreement, shall be binding upon and shall inure to the benefit of the parties hereto, their respective heirs, successors (by merger, consolidation or otherwise) and assigns, devisees, administrators, representatives, lessees. All provisions of this Agreement shall be covenants running with the land pursuant to applicable law, including but not limited to Section 1468 of the Civil Code of the State of California. 10. ’ This Agreement shall become effective and binding upon recordation of this Agreement in the Office of the County Recorder of San Diego County. 11. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which shall constitute one and the same agreement. SOU08449.9 31 IN WITNESS WHEREOF, the parties hereto have executed this instrument on the day and year first above written. CALAVERA HaLS I1 LLC, a California limited liability company a Delaware limited liability company By its Manager: McMillin Companies, LLC, I3 y : By: RANCHO CARLSBAD OWNERS ASSOCIATION INC., a California corporation Its: SDU08449.9 32 STATE OF ) COUNTY OF 1 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) idare subscribed to the within instrument and acknowledged to me that helshelthey executed the same in hishedtheir 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. [SEAL1 Notary Public in and for said County and State STATE OF CALIFORNIA 1 COUNTY OF SAN DIEGO ) 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) idare subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Notary Public in and for said County and State SDU08449.9 33 EXHIBIT “1” TO UNDERGROUND FACILITIES EASEMENT LEGAL DESCRIPTION OWNER’S SITE SDU08449.9 34 AUGUST 27, 2002 J.N. : 01-0185 PAGE 1 OF 1 LEGAL DESCRIPTION FOR OPTION PARCEL THAT PORTION OF PARCEL 3 OF ADJUSTMENT PLAT ADJ 01-13 PER CERTIFICATE OF COMPLIANCE CE 01-56 IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, RECORDED AS DOCUMENT 2001-0865066 ON NOVEMBER 28, 2001 IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS : OF SURVEY NO. 17111 FILED IN THE OFFICE OF THE COUNTY RECORDER BEGINNING AT ANGLE POINT NO. 19 ON THE SOUTHERLY LINE OF RECORD OF SAID COUNTY ON AUGUST 24, 2001; THENCE NORTH 77O55'34" WEST (SEE CERTIFICATE OF CORRECTION OF SAID RECORD OF SURVEY RECORDED NOVEMBER 29, 2001 AS DOC. NO. 2001-0869050 IN THE OFFICE OF SAID COUNTY RECORDER) ALONG THE SOUTHERLY LINE OF SAID RECORD OF SURVEY 113.37 FEET; THENCE LEAVING SAID SOUTHERLY LINE NORTH 8O26'47" WEST 86.33 FEET, NORTH 81O33'13" EAST 49.99 FEET, NORTH 8'26'47" WEST 85.24 FEET, NORTH 11'57'45'' EAST 71.37 FEET, NORTH 8'26'47'' WEST 152.55 FEET TO THE SOUTHERLY LINE OF FUTURE CANNON ROAD; THENCE EASTERLY ALONG THE SOUTHERLY LINE OF FUTURE CANNON ROAD NORTH 81'33'13'' EAST 335.71 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE TO THE NORTH AND HAVING A RADIUS OF 1451.00 FEET; THENCE EASTERLY ALONG SAID CURVE 429.98 FEET THROUGH A CENTRAL ANGLE OF .16'58'43"; THENCE LEAVING THE SOUTH LINE OF FUTURE CANNON ROAD SOUTH 25"25'30" EAST 135.56 FEET TO THE SOUTHERLY LINE OF SAID RECORD OF SURVEY; THENCE WESTERLY ALONG SAID SOUTHERLY LINE SOUTH 51'39'15" WEST 67.24 FEET, SOUTH 48'19'13'' WEST 404.31 FEET, SOUTH 65'09'20'' WEST 386.97 FEET TO THE POINT OF BEGINNING, ALL AS SHOWN ON THE ATTACHED PLAT FOR CONVENIENCE SAKE. THE AREA OF ABOVE DESCRIBED PROPERTY IS 248,292 S.F. OR 5.70 ACRES. I 101 DELTA mRNG/ UNGW RNXUS BASIS OF BEARING: COURSE 8 PER RECORD OF SURVEY 171 11 BEING S 65'09'20" W 0 570 AG SDU08449.9 EXHIBIT “2” TO UNDERGROUND FACILITIES EASEMENT LEGAL DESCRIPTION OF ROBERTSON RANCH 35 ORDER NO. 1285531-6 LEGAL DESCRIPTION THE LAND REFERRED TO HEREIN IS SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF SAN DIEGO, AND IS DESCRIBED AS FOLLOWS: PARCEL 1 : COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 823, THAT PORTION OF LOT E OF RANCHO AGUA HEDIONDA, IN THE CITY OF CARLSBAD, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, NOVEMBER 16, 1896, DESCRIBED AS FOLLOWS: THE SOUTHEAST CORNER OF CT 76-12 PER MAP 9935 FILED IN THE OFFICE OF THE BEGINNING AT THE SOUTHWEST CORNER OF RECORD OF SURVEY 16661, BEING ALSO RESPECTIVELY; THENCE, SOUTH 1O42’35” WEST 1619.75 FEET, SOUTH 63”42’38” EAST COUNTY RECORDER OF SAID COUNTY ON JULY 14, 2000 AND DECEMBER 16, 1980 313.13 FEET, SOUTH 73O19’52” EAST 230.87 FEET, SOUTH 4’56’41” EAST 517.19 FEET TO A POINT ON A CURVE CONCAVE TO THE SOUTH AND .HAVING A RADIUS OF I45 1 .OO FEET, A ALONG SAID CURVE 519.94 FEET THROUGH A CENTRAL ANGLE OF 20’3 1’52”; THENCE, RADIAL LINE TO SAID CURVE BEARS SOUTH 28O58’39” EAST; THENCE, NORTHEASTERLY TANGENT TO SAID CURVE NORTH 81‘33’13’’ EAST 648.89 FEET TO A TANGENT CURVE CONCAVE TO THE NORTH AND HAVING A RADIUS OF 1349.00 FEET; THENCE, EASTERLY TANGENT TO SAID CURVE NORTH 53”15’17” EAST 461.71 FEET TO A TANGENT CURVE ALONG SAID CURVE 666.28 FEET THROUGH A CENTRAL ANGLE OF 28’17’56“; THENCE, NORTHEASTERLY ALONG SAID CURVE 32.06 FEET THROUGH A CENTRAL ANGLE OF CONCAVE TO THE NORTH AND HAVING A RADIUS OF 990.00 FEET; THENCE, TANGENT CURVE CONCAVE TO THE SOUTH AND HAVING A RADIUS OF 1010.00 FEET; Io51’19”; THENCE, TANGENT TO SAID CURVE NORTH 5Io23’58” EAST 60.28 FEET TO A THENCE, NORTHEASTERLY ALONG SAID CURVE 32.70 FEET THROUGH A CENTRAL ANGLE OF lo51’I9”; THENCE, TANGENT TO SAID CURVE NORTH 53°15’17” EAST 336.29 FEET TO A TANGENT CURVE CONCAVE TO THE WEST AND HAVING A RADIUS OF 25.00 FEET; THENCE, NORTHERLY ALONG SAID CURVE 39.80 FEET THROUGH A CENTRAL ANGEL OF 91’12’49”; THENCE, TANGENT TO SAID CURVE NORTH 37O57’32” WEST 300.00 FEET TO A TANGENT CURVE CONCAVE TO THE EAST AND HAVING A RADIUS OF 210.00 FEET; THENCE, NORTHERLY ALONG SAID CURVE 20.92 FEET THROUGH A CENTRAL ANGLE OF 5’42’26”; THENCE, TANGENT TO SAID CURVE NORTH 32O15’06” WEST 80.62 FEET; THENCE, NORTHERLY ALONG SAID CURVE 18.93 FEET THROUGH A CENTRAL FEET TO A TANGENT CURVE CONCAVE TO THE WEST AND HAVING A RADIUS OF 190.00 ANGLE OF 5”42’26“; THENCE, TANGENT TO SAID CURVE NORTH 37Y7’32” WEST 310.22 FEET TO A TANGENT CURVE CONCAVE TO THE SOUTHWEST AND HAVING A RADIUS OF 1349.00 FEET; THENCE, NORTHWESTERLY ALONG SAID CURVE 288.52 FEET THROUGH A CENTRAL ANGLE OF 12°15’16”; THENCE, TANGENT TO SAID CURVE NORTH 50’12’48 WEST 100.00 FEET TO A TANGENT CURVE CONCAVE TO THE NORTHEAST AND HAVING A RADIUS OF 1451.00 FEET: THENCE, NORTHWESTERLY ALONG SAID CURVE 480.31 FEET THROUGH A CENTRAL ANGLE OF 18’57’58” TO A POINT IN THE SOUTH LINE OF SAID RECORD OF SURVEY 16661, A RADIAL LINE TO SAID CURVE BEARS SOUTH 58’45’10” WEST; THENCE, NORTH 89’25’37” WEST ALONG THE SOUTH LINE OF SAID RECORD OF SURVEY 16661 1950.97 FEET TO THE POINT OF BEGINNING. ORDER NO. 1285533-6 SAID LAND BEING DESCRIBED AS PARCEL I ON CERTIFICATE OF COMPLIANCE RECORDED NOVEMBER 28,2001 AS FILE NO. 2001-0865064 OF OFFICIAL RECORDS. PARCEL 2: THAT PORTION OF LOTS D AND E OF RANCHO AGUA HEDIONDA, IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 823, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, NOVEMBER 16,1896, DESCRIBED AS FOLLOWS: THE SOUTHEAST CORNER .OF CT 76-12 PER MAP 9935 FILED IN THE OFFICE OF THE BEGINNING AT THE SOUTHWEST CORNER OF RECORD OF SURVEY 16661, BEING ALSO COUNTY RECORDER OF SAID COUNTY ON JULY 14, 2000 AND DECEMBER 16, 1980 RESPECTIVELY; THENCE, ALONG THE SOUTHERLY Lh‘E OF SAID RECORD OF SURVEY CONTINUING ALONG THE SOUTHERLY AND EASTERLY LINE OF SAID RECORD OF SOUTH 89O25’37” EAST 1950.97 FEET TO THE TRUE POINT OF BEGINNING; THENCE, SURVEY SOUTH 89’25’37” EAST 129.1 I FEET, NORTH 13’44’27” EAST 781.66 FEET, NORTH 21O34’15” EAST 189.90 FEET, NORTH 14O47’00” EAST 160.15 FEET, NORTH 11’34’22’’ EAST 65.17 FEET, NORTH 7O12’14” EAST 135.30 FEET, NORTH 14’45’08’’ EAST 57.12 FEET, NORTH 20’50’34”EAST 126.05 FEET, NORTH 9O43.14” EAST 112.86 FEET, NORTH 1°1S’18” EAST 150.28 FEET, SOUTH 89O37’14” EAST 355.61 FEETTO A POINT ON RECORD OF SURVEY 14818 FILED IN THE OFFICE OF THE COUNTY RECORDER ON MARCH 16, 1995; THENCE, LEAVING SAID RECORD OF SURVEY 16661 AND CONTINUING SOUTHERLY ALONG THE WEST LINE OF RECORD OF SURVEY 14818, SOUTH l”15’25” EAST 304.47 FEET (SOUTH Io11’30” EAST 305.1 8’ R), SOUTH 18’25’38” EAST, 694.08 FEET (SOUTH 18”19’26” EAST 694.27’ R), THENCE, LEAVING SAID RECORD OF SURVEY 14818 AND CONTMUING SOUTHERLY ALONG THE FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY ON NOVEMBER 4, WEST LINE OF THAT 363.14 ACRES PARCEL AS SHOWN ON RECORD 0F.SURVEY 6616 1965; THENCE, SOUTH 1°05’41” WEST 1271.23 FEET (SOUTH l”12’02” WEST 1271.40’ R), SOUTH 4O13’22” WEST 963.76 FEET (SOUTH 4’20’50” WEST 963.88’ R), SOUTH 5lo39’IS” WEST 1165.94 FEET 1165.94 FEET (SOUTH 51’47’48” WEST 1165.49’ R), SOUTH 48’19’13’’ WEST 404.3 I FEET (SOUTH 48’19’29” WEST 404.15’ R), SOUTH 65’09’20” WEST 386.97 FEET (SOUTH 65’14’32’’ WEST 387.06’ R), NORTH 77”55’34“ WEST 635.12 FEET (NORTH 77’48’20” WEST 635.06’ R),’ SOUTH 65’35’13” WEST 494.30 FEET (SOUTH 65”42’27” WEST 494.30’ R), SOUTH 266.73 FEET (SOUTH 30O46’06” WEST 33 1.55’ TO THE CENTERLINE OF RS 682 R) TO A POINT 39O37.39” WEST 339.77 FEET (SOUTH 39”44’53” WEST 339.77’ R), SOUTH 30’38’52” WEST COUNTY ROAD SURVEY NO. 1800-1 (KNOWN AS EL CAMINO REAL) ACCORDING TO IN A LINE THAT IS PARALLEL TO AND 63.00 FEET NORTHERLY OF THE CENTERLINE OF OFFICIAL PLAT THEREOF ON FILE fK THE OFFICE OF THE COUNTY ENGINEER OF SAN DIEGO COUNTY; THENCE, WESTERLY ALONG SAID NORTHERLY LINE, NORTH 66O42’10” OF A CURVE CONCAVE TO THE NORTH AND HAVING A RADIUS OF 6,855.31 FEET, SAID WEST 13.53 FEET; THENCE, SOUTH 23”17’50” WEST 18.00 FEET ALONG THE RADIAL LINE ON ROAD SURVEY NO. 1800-1; THENCE, WESTERLY ALONG SAID NORTH LINE, AND POINT BEING ALSO ON THE NORTH LINE OF THAT 90 FOOT WIDE STRIP OF LAND SHOWN CURVE THROUGH A CENTRAL ANGLE OF 2”10’51” 260.94 FEET; THENCE, LEAVING SAID NORTH LINE, NORTH 32’44’07” EAST 16.78 FEET, SOUTH 82’48’22’’ EAST 72.17 FEET, NORTH 23’31’32” EAST 109.80 FEET, NORTH 25’38’31’’ EAST 100.08 FEET, NORTH 29’07’38” EAST 77.37 FEET, NORTH 3I048’l?” EAST 60.19 FEET, NORTH 42’27’17’’ EAST 23.56 FEET, NORTH 37”46’23” EAST 139.56 FEET, NORTH 24”02’16” EAST 40.09 FEET, NORTH 46”32’58” EAST 28 1.65 FEET, NORTH 53”49’59” EAST 24 I .03 FEET, NORTH 67” IS’ 16” EAST 15.60 FEET, SOUTH ORDER NO. 1285531-6 4O56’41” EAST 44.65 FEET TO A POINT ON A CURVE CONCAVE TO THE SOUTH AND HAVING A RADIUS OF 1451.00 FEET, A RADIAL LINE TO SAID CURVE BEARS SOUTH 28”58’39” EAST; THENCE, NORTHEASTERLY ALONG SAID CURVE 519.94 FEET THROUGH A CENTRAL ANGLE OF 20”31’52”; THENCE, TANGENT TO SAID CURVE NORTH 81”33’13” EAST 648.89 FEET TO A TANGENT CURVE CONCAVE TO THE NORTH AND HAVING A RADIUS OF 1349.00 FEET; THENCE, EASTERLY ALONG SAID CURVE 666.28 FEET THROUGH A CENTRAL ANGLE OF 28O17’56”; THENCE, TANGENT TO SAID CURVE NORTH 53”15’17” EAST 461.71 FEET TO A TANGENT CURVE CONCAVE TO THE NORTH AND HAVING A RADIUS OF 990.00 FEET; THENCE, NORTHEASTERLY ALONG SAID CURVE 32.06 FEET THROUGH A CENTRAL ANGLE OF Io51’19”; THENCE, TANGENT TO SAID CURVE NORTH 51O23’58” EAST 60.28 FEET TO A TANGENT CURVE CONCAVE TO THE SOUTH AND HAVING THROUGH A CENTRAL ANGLE OF 1°51’19”; THENCE, TANGENT TO SAID CURVE NORTH A RADIUS OF 1010.00 FEET; THENCE, NORTHEASTERLY ALONG SAID CURVE 32.70 FEET 53”15’17” EAST 336.29 FEET TO A TANGENT CURVE CONCAVE TO THE WEST AND HAVING THROUGH A CENTRAL ANGLE OF 91O12’49”; THENCE, TANGENT TO SAID CURVE NORTH A RADIUS OF 25.00 FEET; THENCE, NORTHERLY ALONG SAID CURVE 39.80 FEET 37O57.32” WEST 300.00 FEET TO A TANGENT CURVE CONCAVE TO THE EAST AND HAVING A RADIUS OF 210.00 FEET; THENCE, NORTHERLY ALONG SAID CURVE 20.92 FEET THROUGH A CENTRAL ANGLE OF 5-42’26”; THENCE, TANGENT TO SAID CURVE NORTH 32”15’06” WEST 80.62 FEET TO A TANGENT CURVE CONCAVE TO THE WEST AND HAVING THROUGH A CENTRAL ANGLE OF 5’42’26”; THENCE, TANGENT TO SAID CURVE NORTH A RADIUS OF 190.00 FEET; THENCE, NORTHERLY ALONG SAID CURVE 18.93 FEET 37”57’32” WEST 3 10.22 FEET TO A TANGENT CURVE CONCAVE TO THE SOUTHWEST AND HAVING A RADIUS OF 1349.00 FEET; THENCE, NORTHWESTERLY ALONG SAID CURVE 288.52 FEET THROUGH A CENTRAL ANGLE OF 12°15’16”; THENCE, TANGENT TO SAID NORTHEAST AND HAVING A RADIUS OF 145 1 .OO FEET; THENCE NORTHWESTERLY ALONG CURVE NORTH 50’12’48” WEST 100.00 FEET TO A TANGENT CURVE CONCAVE TO THE SAID CURVE 480.3 1 FEET THROUGH A CENTRAL ANGLE OF 1 897’58” TO A.POINT IN THE SOUTH LINE OF SAID RECORD OF SURVEY 16661, SAID POINT BEING THE TRUE POINT OF BEGINNING, A RADIAL LINE TO SAID CURVE AT THE TRUE POINT OF BEGINNING BEARS SOUTH 58’45’1 0” WEST. RECORDED NOVEMBER 28,2001 AS FILE NO. 2001-0865066 OF OFFICIAL RECORDS. SAID LAND BEING DESCRIBED AS PARCEL 3 ON CERTIFICATE OF COMPLIANCE FEBRUARY 05. 2002 3:21 PM MC EXHIBIT “E” Recording Requested By and When Recorded Mail To: Latham & Watkins 701 “B” Street, Suite 2100 San Diego, California 92101 Attn: Amy G. Nefouse A OVE SPACE FOR RECORDER’S USE ONLY LANDSCAPING/SOUND WALL EASEMENT AGREEMENT This LANDSCAPING/SOUND WALL EASEMENT AGREEMENT (“Agreement”) is entered into as of ,- between CALAVERA HILLS I1 LLC, California limited liability, (“Calavera”), and the RANCHO CARLSBAD OWNERS ASSOCIATION INC., a California corporation, (“Owner“) with reference to the following facts: A. Contemporaneously herewith, Owner is purchasing from Calavera the real property located in the City of Carlsbad, California, more particularly described on Exhibit “1” attached hereto (“Owner’s Site”). B. Calavera is the owner of that certain real property located in the City Carlsbad, California, more particularly described on Exhibit “2” attached hereto (“Robertson Ranch”). C. Calavera desires to acquire certain rights in Owner’s Site. AGREEMENT NOW THEREFORE, for valuable consideration, receipt of which is hereby acknowledged, it is agreed as follows: 1. Owner hereby grants to Calavera the non-exclusive perpetual easement hereinafter described (the “Easement”). 2. The Easement is over and across that portion@) of the Owner’s Site determined by Calavera in the future to be most suitable and convenient. However, once the location(s) has 36 SDU08449.9 been determined, the parties hereto agree to amend the Easement to set forth such location(s) with more specificity. 3. The Easement is in gross. 4. The Easement consists of the following: An easement for the construction, grading, planting andor maintenance, as applicable, of a berm, sound wall, grass, flowers, shrubs, trees and irrigation, and other landscaping services paralleling Cannon Road, and for pedestrian and vehicular ingress and egress over dnveways, roads, sidewalks or other areas as reasonably necessary to provide access for these purposes. 5. Calavera shall exercise its rights in connection with the Easement, including but not limited to its determination of the location of the Easement, only to the extent necessary to accomplish the purposes for which the Easement is intended and shall not exercise its rights in connection with the Easement in such a way as to render the Owner’s Site unusable for its intended purposes as a community garden, wash area, waste disposal area and RV Parking Lot (which includes, without limitation, parking for boats, cars, jet skis, RVs, hay wagons and other personal items, subject to any applicable governmental approvals). 6. The Easement is not exclusive. Owner retains the right to make any use of Owner’s Site that does not unreasonably interfere with Calavera’s free use and enjoyment of the Easement. 7. In the event of any controversy, claim or dispute relating to this instrument or the breach hereof, the prevailing party shall be entitled to recover from the losing party its reasonable costs, expenses and attorneys’ fees. 8. Calavera shall hold harmless, indemnify and defend Owner and any of Owner’s successors, assigns, employees, agents and occupants of Owner’s Site from and against any and all obligations, liabilities, claims, liens, demands, losses, damages, causes of action, judgments, costs and expenses (including reasonable attorneys’ fees and costs) arising out of or relating to Calavera’s use of the Easement or Calavera’s breach of any covenant or agreement contained in this instrument, including without limitation, any and all damages to buildings, structures and landscape improvements located on Owner’s Site arising out of the use of the Easement. 9. All of the provisions, agreements, rights, powers, covenants, conditions and obligations contained in this Agreement, shall be binding upon and shall inure to the benefit of the parties hereto, their respective heirs, successors (by merger, consolidation or otherwise) and assigns, devisees, administrators, representatives, lessees. All provisions of this Agreement shall be covenants running with the land pursuant to applicable law, including but not limited to Section 1468 of the Civil Code of the State of California. 10. This Agreement shall become effective and binding upon recordation of this Agreement in the Office of the County Recorder of San Diego County. 11. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which shall constitute one and the same agreement. 37 SDL308449.9 IN WITNESS WHEREOF, the parties hereto have executed this instrument on the day and year first above written. CALAVERA HILLS 11 LLC, a California limited liability company a Delaware limited liability company By its Manager: McMiliin Companies, LLC, Its: By: RANCHO CARLSBAD OWNERS ASSOCIATION INC., a California corporation By: Its: SDU08449.9 38 STATE OF ) COUNTY OF ) On , before me, , personally appeared , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) islare subscribed to the within instrument and acknowledged to me that he/she/they executed the same in hislherltheir authorized capacity(ies), and that by hislhedtheir 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. [SEAL1 Notary Public in and for said County and State STATE OF CALIFORNIA 1 COUNTY OF SAN DIEGO 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(?,) islare subscribed to the within instrument and acknowledged to me that helshelthey executed the same in hislherltheir authorized capacity(ies), and that by hidherltheir 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. [SEAL1 Notary Public in and for said County and State SDUOW9.9 39 EXHIBIT “1” TO LANDSCAPING/SOUND WALL EASEMENT LEGAL DESCRIPTION OWNER’S SITE SDU08449.9 40 AUGUST 27, 2002 PAGE 1 OF 1 J.N. : 01-0185 LEGAL DESCRIPTION FOR OPTION PARCEL ~. .. THAT PORTION OF PARCEL 3 OF ADJUSTMENT PLAT ADJ 01-13 PER CERTIFICATE OF COMPLIANCE CE 01-56 IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, RECORDED AS DOCUMENT 2001-0865066 ON NOVEMBER 28, 2001 IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS : OF SURVEY NO. 17111 FILED IN THE OFFICE OF THE COUNTY RECORDER BEGINNING AT ANGLE POINT NO. 19 ON THE SOUTHERLY LINE OF RECORD OF SAID COUNTY ON AUGUST 24, 2001; THENCE NORTH 77"55'34" WEST (SEE CERTIFICATE OF CORRECTION OF SAID RECORD OF SURVEY RECORDED NOVEMBER 29, 2001 AS DOC. NO. 2001-0869050 IN THE OFFICE OF SAID COUNTY RECORDER) ALONG THE SOUTHERLY LINE OF SAID RECORD OF SURVEY 113.37 FEET; THENCE LEAVING SAID SOUTHERLY LINE NORTH 8'26'47''. WEST 86.33 FEET, NORTH 81"33'13" EAST 49.99 FEET, NORTH E"26'47" WEST 85.24 FEET, NORTH ll"57'45" EAST 71.37 FEET, NORTH E"26'47" WEST 152.55 FEET TO THE SOUTHERLY LINE OF FUTURE CANNON ROAD; THENCE EASTERLY ALONG THE SOUTHERLY LINE OF FUTURE CANNON ROAD NORTH 81'33'13" EAST 335.71 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE TO THE NORTH AND HAVING A RADIUS OF 1451.00 FEET; THENCE EASTERLY ALONG SAID CURVE 429.98 FEET THROUGH A CENTRAL ANGLE OF 16°58'43"; THENCE LEAVING THE SOUTH LINE OF FUTURE CANNON ROAD SOUTH 25'25'30'' EAST 135.56 FEET TO THE SOUTHERLY LINE OF SAID RECORD OF SURVEY; THENCE WESTERLY ALONG SAID SOUTHERLY LINE SOUTH 51O39'15" WEST 67.24 FEET, SOUTH 48'19'13'' WEST 404.31 FEET, SOUTH 65'09'20'' WEST 386.97 FEET TO THE POINT OF BEGINNING, ALL AS SHOWN ON THE ATTACHED PLAT FOR CONVENIENCE SAKE. THE AREA OF ABOVE DESCRIBED PROPERTY IS 248,292 S.F. OR 5.70 ACRES. I N 775534'W 3 N BI'JJ'N'E 49.99' I BASIS OF BEARING COURSE 8 PER RECORD OF SURMY 171 11 BEING S 65'09'20' W / SDU08449.9 EXHIBIT “2” TO LANDSCAPING/SOUND WALL EASEMENT LEGAL DESCRIPTION OF ROBERTSON RANCH 41 ORDER NO. 1285531-6 LEGAL DESCRIPTION THE LAND REFERRED TO HEREIN IS SITUATED IN THE STATE OF CALIFORNIA, COUNTY OF SAN DIEGO. AND IS DESCRIBED AS FOLLOWS: PARCEL 1 : THAT PORTION OF LOT E OF RANCHO AGUA HEDIONDA, IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 823, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, NOVEMBER 16, 1896, DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWEST CORNER OF RECORD OF SURVEY 16661, BEING ALSO THE SOUTHEAST CORNER OF CT 76-12 PER MAP 9935 FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY ON JULY 14, 2000 AND DECEMBER 16, 1980 RESPECTIVELY; THENCE, SOUTH IO42’35” WEST 1619.75 FEET, SOUTH 63”42’38” EAST POINT ON A CURVE CONCAVE TO THE SOUTH AND HAVING A RADIUS OF I45 1 .OO FEET, A 313.13 FEET, SOUTH 73’19’52” EAST 230.87 FEET, SOUTH 4’56’41” EAST 517.19 FEET TO A RADIAL LINE TO SAID CURVE BEARS SOUTH 2898’39” EAST; THENCE, NORTHEASTERLY ALONG SAID CURVE 519.94 FEET THROUGH A CENTRAL ANGLE OF 20O31’52”; THENCE, TANGENT TO SAID CURVE NORTH 81”33’13” EAST 648.89 FEET TO A TANGENT CURVE CONCAVE TO THE NORTH AND HAVING A RADIUS OF 1349.00 FEET; THENCE, EASTERLY TANGENT TO SAID CURVE NORTH 53°15’17” EAST 461.71 FEET TO A TANGENT CURVE ALONG SAID CURVE 666.28 FEET THROUGH A CENTRAL ANGLE OF 28’17’56’’; THENCE, NORTHEASTERLY ALONG SAID CURVE 32.06 FEET THROUGH A CENTRAL ANGLE OF CONCAVE TO THE NORTH AND HAVING A RADIUS OF 990.00 FEET; THENCE, 1°51’19”; THENCE, TANGENT TO SAID CURVE NORTH 51’23’58” EAST 60.28 FEET TO A TANGENT CURVE CONCAVE TO THE SOUTH AND HAVING A RADIUS OF 1010.00 FEET; ANGLE OF I”51’19”; THENCE, TANGENT TO SAID CURVE NORTH 53’15’17” EAST 336.29 THENCE, NORTHEASTERLY ALONG SAID CURVE 32.70 FEET THROUGH A CENTRAL FEET; THENCE, NORTHERLY ALONG SAID CURVE 39.80 FEET THROUGH A CENTRAL FEET TO A TANGENT CURVE CONCAVE TO THE WEST AND HAVING A RADIUS OF 25.00 ANGEL OF 91O12’49”; THENCE, TANGENT TO SAID CURVE NORTH 37’57’32’’ WEST 300.00 FEET TO A TANGENT CURVE CONCAVE TO THE EAST AND HAVING A RADIUS OF 210.00 FEET; THENCE, NORTHERLY ALONG SAID CURVE 20.92 FEET THROUGH A CENTRAL ANGLE OF 5’42’26”; THENCE, TANGENT TO SAID CURVE NORTH 32”15’06“ WEST 80.62 FEET; THENCE, NORTHERLY ALONG SAID CURVE 18.93 FEET THROUGH A CENTRAL FEET TO A TANGENT CURVE CONCAVE TO THE WEST AND HAVING A RADIUS OF 190.00 ANGLE OF 5’42’26”; THENCE, TANGENT TO SAID CURVE NORTH 37’37’32’’ WEST 310.22 FEET TO A TANGENT CURVE CONCAVE TO THE SOUTHWEST AND HAVING A RADIUS OF 1349.00 FEET; THENCE, NORTHWESTERLY ALONG SAID CLJRVE 288.52 FEET THROUGH A CENTRAL ANGLE OF 12”15’16”; THENCE, TANGENT TO SAID CURVE NORTH 50’12’48’’ WEST 100.00 FEET TO A TANGENT CURVE CONCAVE TO THE NORTHEAST AND HAVING A RADIUS OF 1451.00 FEET: THENCE, NORTHWESTERLY ALONG SAID CURVE 480.31 FEET THROUGH A CENTRAL ANGLE OF 18’57’58’’ TO A POINT PJ THE SOUTH LINE OF SAID RECORD OF SURVEY 16661, A RADIAL LINE TO SAID CURVE BEARS SOUTH 58’45’10” WESC THENCE, NORTH 89’25’37” WEST ALONG THE SOUTH LlNE OF SAID RECORD OF SURVEY 16661 1950.97 FEETTO THE POINT OF BEGMNING. ORDER NO. 1285531-6 SAID LAND BEING DESCRIBED AS PARCEL I ON CERTIFICATE OF COMPLIANCE RECORDED NOVEMBER 28,2001 AS FILE NO. 2001-0865064 OF OFFICIAL RECORDS. PARCEL 2: THAT PORTION OF LOTS D AND E OF RANCHO AGUA HEDIONDA, IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 823, FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, NOVEMBER 16,1896, DESCRIBED AS FOLLOWS: THE SOUTHEAST CORNER ,OF CT 76-12 PER MAP 9935 FILED IN THE OFFICE OF THE BEGMNING AT THE SOUTHWEST CORNER OF RECORD OF SURVEY 16661, BEING ALSO COUNTY RECORDER OF SAID COUNTY ON JULY 14, 2000 AND DECEMBER 16, 1980 RESPECTIVELY; THENCE, ALONG THE SOUTHERLY LINE OF SAID RECORD OF SURVEY SOUTH 89O25’37” EAST 1950.97 FEET TO THE TRUE POINT OF BEGINNING; THENCE, CONTINUING ALONG THE SOUTHERLY AND EASTERLY LINE OF SAID RECORD OF 21O34’15” EAST 189.90 FEET, NORTH 14”47’00” EAST 160.15 FEET, NORTH 11’34’22’’ EAST SURVEY SOUTH 89’25’37’’ EAST 129.1 I FEET, NORTH 13’44’27” EAST 781.66 FEET, NORTH 65.17 FEET, NORTH 7’12’14’’ EAST 135.30 FEET, NORTH 14°45’08” EAST 57.12 FEET, NORTH 20’50’34”EAST 126.05 FEET, NORTH 9“43’14” EAST 112.86 FEET, NORTH 1“15’18” EAST 150.28 IN THE OFFICE OF THE COUNTY RECORDER ON MARCH 16,1995; THENCE, LEAVING SAID FEET, SOUTH 89”37’14” EAST 355.61 FEETTO A POINT ON RECORD OF SURVEY 14818 FILED RECORD OF SURVEY 14818, SOUTH l”15’25” EAST 304.47 FEET (SOUTH Io11’3O” EAST RECORD OF SURVEY 16661 AND CONTINUING SOUTHERLY ALONG THE WEST LINE OF 305.18’ R), SOUTH 18’25’38’’ EAST, 694.08 FEET (SOUTH 18”19’26” EAST 694.27’ R), THENCE, LEAVING SAID RECORD OF SURVEY 14818 AND CONTINUING SOUTHERLY ALONG THE WEST LINE OF THAT 363.14 ACRES PARCEL AS SHOWN ON RECORD 0F.SURVEY 6616 FILED M THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY ON NOVEMBER 4, 1965; THENCE, SOUTH 1°05’41” WEST 1271.23 FEET (SOUTH 1°12’02” WEST 1271.40’ R), SOUTH 4”13’22” WEST 963.76 FEET (SOUTH 4’20’50” WEST 963.88’ R), SOUTH 5lo39’I5”WEST 1165.94 FEET 1165.94 FEET (SOUTH 51”47’48” WEST 1165.49’ R), SOUTH 48O19’13” WEST 404.3 I FEET (SOUTH 48”19’29” WEST 404.15’ R), SOUTH 65O09’20” WEST 386.97 FEET (SOUTH 65’14’32’’ WEST 387.06’ R), NORTH 77’35’34’’ WEST 635.12 FEET (NORTH 77’48’20” WEST 635.06’ R), SOUTH 65‘35’13” WEST 494.30 FEET (SOUTH 65’42’27” WEST 494.30’ R), SOUTH 266.73 FEET (SOUTH 30O46’06” WEST 33 1.55’ TO THE CENTERLINE OF RS 682 R) TO A POINT 39’37’39” WEST 339.77 FEET (SOUTH 39’44’53’’ WEST 339.77’ R), SOUTH 30”38’52” WEST IN A LINE THAT IS PARALLEL TO AND 63.00 FEET NORTHERLY OF THE CENTERLINE OF OFFICIAL PLAT THEREOF ON FILE IN THE OFFICE OF THE COUNTY ENGINEER OF SAN DIEGO COUNTY; THENCE, WESTERLY ALONG SAID NORTHERLY LINE, NORTH 66O42’10” WEST 13.53 FEET; THENCE, SOUTH 23O17’50” WEST 18.00 FEET ALONG THE RADIAL LINE OF A CURVE CONCAVE TO THE NORTH AND HAVING A RADIUS OF 6,855.31 FEET, SAID POINT BEING ALSO ON THE NORTH LINE OF THAT 90 FOOT WIDE STRJP OF LAND SHOWN CURVE THROUGH A CENTRAL ANGLE OF 2°10’51” 260.94 FEET; THENCE, LEAVING SAID NORTH LINE, NORTH 32’44’07” EAST 16.78 FEET, SOUTH 82O48’22” EAST 72.17 FEET, NORTH 23”31’32” EAST 109.80 FEET, NORTH 25’38’31’’ EAST 100.08 FEET, NORTH 29”07’38” EAST 17.37 FEET, NORTH 31O48’12” EAST 60.19 FEET, NORTH 42’27’17” EAST 23.56 FEET, NORTH 37’46’23” EAST 139.56 FEET, NORTH 24”02’16” EAST 40.09 FEET, NORTH 46’32’58” EAST 28 1.65 FEET, NORTH 53”49’59” EAST 24 I .03 FEET, NORTH 67” 15’ 16” EAST 15.60 FEET. SOUTH COUNTY ROAD SURVEY NO. 1800-1 (KNOWN AS EL CAMINO REAL) ACCORDING TO ON ROAD SURVEY NO. 1800-1; THENCE, WESTERLY ALONG SAID NORTH LINE, AND ORDER NO. 1285531-6 4O56’41” EAST 44.65 FEET TO A POINT ON A CURVE CONCAVE TO THE SOUTH AND -.HAVING A RADIUS OF 1451 .OO FEET, A RADIAL LINE TO SAID CURVE BEARS SOUTH 28’38’39” EAST; THENCE, NORTHEASTERLY ALONG SAID CURVE 5 19.94 FEET THROUGH A CENTRAL ANGLE OF 2071’52’’; THENCE, TANGENT TO SAID CURVE NORTH 81’33’13’’ EAST 648.89 FEET TO A TANGENT CURVE CONCAVE TO THE.NORTH AND HAVING A RADIUS OF 1349.00 FEET; THENCE, EASTERLY ALONG SAID CURVE 666.28 FEET THROUGH A CENTRAL ANGLE OF 28”17’56”; THENCE, TANGENT TO SAID CURVE NORTH 53°15’17” EAST 461.71 FEET TO A TANGENT CURVE CONCAVE TO THE NORTH AND HAVING A RADIUS OF 990.00 FEET; THENCE, NORTHEASTERLY ALONG SAID CURVE 32.06 FEET THROUGH A CENTRAL ANGLE OF Io51’19”, THENCE, TANGENT TO SAID CURVE NORTH 5 1’23’58’’ EAST 60.28 FEET TO A TANGENT CURVE CONCAVE TO THE SOUTH AND HAVING THROUGH A CENTRAL ANGLE OF Io51’19”, THENCE, TANGENT TO SAID CURVE NORTH A RADIUS OF 1010.00 FEET; THENCE, NORTHEASTERLY ALONG SAID CURVE 32.70 FEET 53”15’17” EAST 336.29 FEET TO A TANGENT CURVE CONCAVE TO THE WEST AND HAVING THROUGH A CENTRAL ANGLE OF 91O12’49”; THENCE, TANGENT TO SAID CURVE NORTH A RADIUS OF 25.00 FEET; THENCE, NORTHERLY ALONG SAID CURVE 39.80 FEET 37’57’32’’ WEST 300.00 FEET TO A TANGENT CURVE CONCAVE TO THE EAST AND HAVING A RADIUS OF 210.00 FEET; THENCE, NORTHERLY ALONG SAID CURVE 20.92 FEET THROUGH A CENTRAL ANGLE OF 5’42’26’’; THENCE, TANGENT TO SAID CURVE NORTH 32’15’06” WEST 80.62 FEET TO A TANGENT CURVE CONCAVE TO THE WEST AND HAVING A RADIUS OF 190.00 FEET; THENCE, NORTHERLY ALONG SAID CURVE 18.93 FEET THROUGH A CENTRAL ANGLE OF 5’42’26”; THENCE, TANGENT TO SAID CURVE NORTH 37T7’32” WEST 3 10.22 FEET TO A TANGENT CURVE CONCAVE TO THE SOUTHWEST AND 288.52 FEET THROUGH A CENTRAL ANGLE OF 12°15’16”; THENCE, TANGENT TO SAID HAVING A RADIUS OF 1349.00 FEET; THENCE, NORTHWESTERLY ALONG SAID CURVE NORTHEAST AND HAVING A RADIUS OF 145 I .OO FEET; THENCE NORTHWESTERLY ALONG CURVE NORTH 50’12’48” WEST 100.00 FEET TO A TANGENT CURVE CONCAVE TO THE SAID CURVE 480.31 FEET THROUGH A CENTRAL ANGLE OF 18’57’58’’ TO A.POINT IN THE SOUTH LINE OF SAID RECORD OF SURVEY 16661, SAID POINT BEING THE TRUE POINT OF BEGINNING, A RADIAL LINE TO SAID CURVE AT THE TRUE POINT OF BEGINNING BEARS SOUTH 58’45’10’’ WEST. SAID LAND BEING DESCRIBED AS PARCEL 3 ON CERTIFICATE OF COMPLIANCE RECORDED NOVEMBER 28,2001 AS FILE NO. 2001-0865066 OF OFFICIAL RECORDS. FEBRUARY 05.2002 3:21 PM MC EXHIBIT ‘‘F” Recording Requested By and When Recorded Mail To: Latham & Watkins 701 “B” Street, Suite 2100 San Diego, California 92101 Attn: Amy G. Nefouse Mail Tax Statements To: GRANT DEED A.P.N. FOR VALUABLE CONSIDERATION, receipt and adequacy of which is hereby acknowleged: CALAVERA HILLS I1 LLC, a California limited liability company (“Grantor”), hereby grants to the RANCHO CARLSBAD OWNERS ASSOCIATION INC., a California corporation (“Grantee”), the real property located in the City of Carlsbad, State of California, more particularly described on Exhibit “1” attached hereto and incorporated herein by this reference, together with all of Grantor’s interest in all rights, privileges, easements and rights-of-way appurtenant to such property (the “Prowrty”). Grantee accepts title to the Property subject to all easements, convanents, conditions, restrictions, reservations, rights-of-way and any other matters approved by Grantee at or before the transfer SDU08449.9 42 of the Property, including but not limited to the: Flood Easement Agreement, LandscapinglSound Wall Easement Agreement, and Underground Facilities Easement Agreement, between Grantor and Grantee, recorded contemporaneously herewith. Dated: CALAVERA HILLS I1 LLC, a California limited liability company a Delaware limited liability company By its Manager: McMillin Companies, LLC, SDU08449.9 43 STATE OF CALIFORNIA ) County of San Diego 1 ) ss. On , before me, Notary Public in and for said County and State, personally appeared ,a personally known to be (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(?.) idare subscribed to the within instrument and acknowledged to me that he/she/they executed the same in hishedtheir authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. Witness my hand and official seal. Notary Public SDU08449.9 44 AUGUST 27, 2002 PAGE 1 OF 1 J.N. : 01-0185 LEGAL DESCRIPTION FOR OPTION PARCEL THAT PORTION OF PARCEL 3 OF ADJUSTMENT PLAT ADJ 01-13 PER CERTIFICATE OF COMPLIANCE CE 01-56 IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, RECORDED AS DOCUMENT 2001-0865066 ON NOVEMBER 28, 2001 IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS : BEGINNING AT ANGLE POINT NO. 19 ON THE SOUTHERLY LINE OF RECORD OF SURVEY NO. 17111 FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY ON AUGUST 24, 2001; THENCE NORTH 77O55'34" WEST (SEE CERTIFICATE OF CORRECTION OF SAID RECORD OF SURVEY RECORDED NOVEMBER 29, 2001 AS DOC. NO. 2001-0869050 IN THE OFFICE OF SAID COUNTY RECORDER) ALONG THE SOUTHERLY LINE OF SAID RECORD OF SURVEY 113.37 FEET; THENCE LEAVING SAID SOUTHERLY LINE NORTH 8'26'47" WEST 86.33 FEET, NORTH 81O33'13" EAST 49.99 FEET, NORTH 8'26'47'' WEST 85.24 FEET, NORTH ll"57'45" EAST 71.31 FEET, NORTH 8"26'41" WEST 152.55 FEET TO THE SOUTHERLY LINE OF FUTURE CANNON ROAD; THENCE EASTERLY ALONG THE SOUTHERLY LINE OF FUTURE CANNON ROAD NORTH 81"33'13" EAST 335.71 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE TO THE NORTH AND HAVING A RADIUS OF 1451.00 FEET; THENCE EASTERLY ALONG SAID CURVE 429.98 FEET THROUGH A CENTRAL ANGLE OF .16"58'43"; THENCE LEAVING THE SOUTH LINE OF FUTURE CANNON ROAD SOUTH 25'25'30'' EAST 135.56 FEET TO THE SOUTHERLY LINE OF SAID RECORD OF SURVEY; THENCE WESTERLY ALONG SAID SOUTHERLY LINE SOUTH 51'39'15" WEST 67.24 FEET, SOUTH 48O19'13" WEST 404.31 FEET, SOUTH 65"09'20" WEST 386.97 FEET TO THE POINT OF BEGINNING, ALL AS SHOWN ON THE ATTACHED PLAT FOR CONVENIENCE SAKE. THE AREA OF ABOVE DESCRIBED PROPERTY IS 248,292 S.F. OR 5.70 ACRES. EXHIBIT D [Conditions of Approval referred to in Section 61 SD-DOCSU04222.12 II 1. 1: 1: 1A l! If 1; It IS 2( 21 21 23 24 25 26 27 28 1 2 3 4 5 6 7 B 9 D 1 1 5 I i 1 1 I I ! I I follows: RESOLUTION NO. 2002-016 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CARLSBAD, CALIFORNIA, CERTIFYING AN ENVIRONMENTAL OF OVERRiDlNG CONSIDERATIONS, A MITIGATION IMPACT REPORT, CEQA FINDINGS OF FACT, STATEMENTS A GENERAL PIAN AMENDMENT, MASTER PLAN MONITORING AND REPORTING PROGRAM, AND APPROVING AMENDMENT, ZONE 7 LOCAL FACILITIES MANAGEMENT PLAN AMENDMENT, ZONE CHANGE, MASTER TENTATIVE CAIAVERA HILLS MASTER PIAN ON PROPERTY MAP AND HILLSIDE DEVELOPMENT PERMIT WITHIN THE AND WEST OF LAKE CALAVERA IN THE NORHTEAST GENERALLY LOCATED SOUTH OF THE ClTY OF OCEANSIDE QUADRANT OF THE CITY. CASE NAME CALAVERA HILLS PHASE Iimm M AND BASINS CASENO.: EIR 98-02/GPA 99-03hIP 1501HULFMP 87- 071AVZC Ol-OI/CT 0&02/HDP 00-02 The Cily Council of the City of Carlsbad, Califomla, does hereby resolve as WHEREAS, the Planning Cornmission did on December 19,2001, and Januar) 2,2002 hold duly noticed public hearings as pmsaibed by law to consider the land use actions and entitlements outlined above to facilitate the buildout of the Calavera Hills Master Plan and the environmental review for the master plan as well as the mads and basins to be covered by Bridge and Thoroughfare District #4 or similar financing mechanism. The Planning Commission adopted Planning Commission Resolutions No. 51 12 through 51 18, recommending to the City Councll that the above listed Items be approved; and WHEREAS. the City Council did on the 15th day of January, 2002 hold a duly noticed public hearing as prescn'bed by law to consider the EIR, Statement of Overriding Considerations, CEQA Findings of Fact and Mitigation Monltorlng and Reparling Program, General Pian Amendment, Master Plan Amendment, Zone 7 Local Facilities Management Plan Amendment. Zone Change, Master Tentative Map and Hillside Development Permit and; WHEREAS, at said public hearing. upon hearing and considering all testimony and arguments, if any, of all persons desiring to be heard, the City Council considered all factors relating to the above described project; 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 The City Council of the City of Carlsbad, California does hereby resolve a! follows: 1. That the above recitations are true and correct. 2. That the findings of the Planning Commission in Planning Commissior Resolutions No. 5112, 5113. 5114, 5115, 5116, 5117 and 5118 constitute the findings of thf City Council in this matter. 3. That the conditions imposed by the Planning Commission in Planning Commission Resolutions No. 5112, 5113, 5114, 5115, 5116, 5117 and 5118 constitute thr conditions of the City Council in this matter. Except that condition numbers 31, 36 and 3E imposed by the Planning Commission in Planning Commission Resolution No. 5117 be revisec to read as follows: '31. Prior to issuance of the first building permit for the Calavera Hills Phase I1 with the City of Carlsbad and the Rancho Carlsbad Owners Association offering the City the project ('Project"), the applicant shall cause Owner to enter into a purchase option agreemeni option to purchase, at not more than fair market value, an approximately 5.7 acre parcel of land, to provide a relocation site for facilities that will either be replaced by or have the access severed by the construction of College Boulevard Reach A or Detention Basis BJ (the 'Facilities Replacement Area"). The general location of the Facilities Replacement Area is shown on the Rancho Carisbad Exhibit as the location of the Rancho Carlsbad Owners Association facliities, including the community garden, RV parking lot, wash area and waste disposal area. The by January I. 2010, the Rancho Carlsbad Owners Association may exercise the option and purchase option agreement shall provide that if the City does not exercise its option to purchase purchase the parcel. The agreement shall also provide that the Rancho Carlsbad Owners Association, with agreement of Owner, may process any and all permits and applications with the appropriate governmental agencies required for the implementation of these provisions provided any such permits issued are amdltioned upon the transfer of the parcel. Alternately, the Owner may elect to process the necessv permits and applications to implement these provisions itself. "The agreement shall provlde that if either the Owner or Ran,cho Carlsbad Owners Association are denied by any approving governmental agency a requested permit necessary for use of the 5.7 acre parcel for a wmmunlty garden, RV parking lot, wash area and waste disposal area, then the purchase option agreement shall automatically terminate. The City shall provide the mechanism whereby the purchase by the Assodation shall be eligible for credit and repayment from the appropriate funding source or sources established by the City which indude this purpose. Any such credit and repayment mechanism shall be Implemented prior to or concurrent with the transfer to the City by the Rancho Carlsbad Owners Association of the property rights required to install Basin BJ. If the Rancho Carlsbad Owners Association and Owner are unable to reach agreement with respect to the terms of the purchase option agreement by May 1, 2002, the Rancho Carlsbad Owners Assodation and Owner shall enter to resolve the terms of the agreement, subject to concurrence by the City to the extent the terms into binding arbitration to resolve the terms of the agreement, subject to concurrence by the City RsPol~ti~ No. 2002-016 page 1 of 4 I 5 4 < c i e S IC 11 11 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 impact the City's obligations under the agreement. Such arbitration to be paid for by Ownel The City Manager and City Attorney, or their designees, shall be authorized to negotiate anc enter into the purchase option agreement on behalf of the City, provided it complies with thc terms of this condition, without further review of the City Coundl. The actual purchase o acquisition of the property which is the subject of the option agreement will require City bund review and approval.' berm to run along the south side of Reach 3 of Cannon Road between El Camino Real and thl '38. The applicant shall constfuCt a five-foot sound wall atop a three-foot earthel intersection with College Boulevard (the 'Berm'). The Berm and the slope shall be full! facing the Rancho Carlsbad Mobile home Pak The landscaping plans shall be approved prio landscaped, as shown on the Rancho Carlsbad Exhibit, on that portion of he Berm and slopt days prior to the opening of Cannon Road to public traffic. The sound wall shall be located i to the approval of the final map for CT 00-02 and such landscaping shall be installed at least 3( wetlands or other sensitive habitats do not interfere.' minimum of 20 feet from the edge of the southern right-of-way of Cannon Road Reach 3, whert '39. The applicant shall cause the Owner to plant eucalyptus trees, or such othe, trees as are comparable in price and availability, and native hydroseeding on an approximatel) the intersection of College Boulevard and Cannon Road, as shown on the Rancho Carlsbac 2.51 acre parcel of land generally located between Cannon Road Station 150 plus 80 feet anc Exhibit as the grove parcel. Approximately 2.25 acre of this parcel of land, generally locatec between Cannon Road Station 151 and the intersection of College Boulevard and Cannor Association at no cost. Deeding or granting of the easement, and planting and irrigation of thf Road, shall be deeded or provided by permanent easement to the Rancho Carlsbad Ownen grove parcel shall occur at least 30 days prior to the opening of Cannon Road Reach 3.' 4. The recommendation of the Planning Commission for a General Plar Amendment, GPA 99-03, as shown in Planning Commission Resolution No. 5113, is hereb) accepted, approved in concept and shall be formally approved in connection with General Plan Amendments GPA 01-08 and GPA 01-15. 5. The City Coundl shall retain jurisdiction over uses proposed for Village H and shall act as the final decision maker on such uses following a recornendation from the Planning Commission.' EFFECTIVE DATE: This resolution shall be effective upon its adoption, except as to the General Plan Amendment, which shall be effective thirty (30) days following its adoption. Ill Ill Ill Rswlutim No. 2002416 page 3 of 4 i 1 ! 1( 11 11 12 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PASSED AND ADOPTED at a regular meeting of the City Council of the City of Carlsbad on the 15th day of JANUARY 2002, by the following vote, to wit AYES: Council Members Lewis, Kulchin, Finnila, Nygaard, Hall NOES: None AlTEST: 1 BOSTON ERUSSELS CHICAGO FRANKFURT HAMBURG HONG KONG LOS ANGELES LONDON MILAN MOSCOW NEW JERSEY Latham & Watkins ATTORNEYS AT LAW WWW,LW.COM October 8,2002 Cindie McMahon, Esq. Assistant City Attorney City Attorney, City of Carlsbad 1200 Carlsbad Village Drive Carlsbad, CA 92008 NEW YORK NORTHERN VIRGINIA ORANGE COUNTY PARIS SAN DIEOO NORTH COUNTY SAN FRANCISCO SILICON VALLEY SINGAPORE WASHINGTON, D.C. TOKYO Re: Original Legal DescriDtion of ODtion Parcel for Option Aaeement Dear Cindie: Enclosed is the original legal description of the 5.7 acre option parcel for use with the City's original of the Option Agreement. A copy of this legal description had earlier been sent to you and counsel for the Rancho Carlsbad Owners Association by email dated August 30, 2002. k Truly ours, Amy G. Nefou of LATHAM & WATKINS Enclosure cc: L. Sue Loftin, Esq. (w/encl.) Mr. Brian Milich (w/encl.) 701 E STRLEr. SUITE 2100 * SAN DNEOO, CALIFORNIA 92101-8197 TELEPHONE: I6191 235-1234 . FAX I6191 696-7419 SDU54399.1 AUGUST 27, 2002 J.N. : 01-0185 PAGE 1 OF 1 LEGAL DESCRIPTION FOR OPTION PARCEL THAT PORTION OF PARCEL 3 OF ADJUSTMENT PLAT ADJ 01-13 PER CERTIFICATE OF COMPLIANCE CE 01-56 IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, RECORDED AS DOCUMENT 2001-0865066 ON NOVEMBER 28, 2001 IN THE OFFICE OF THE COUNTY RECORDER OF SAN DIEGO COUNTY, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS : BEGINNING AT ANGLE POINT NO. 19 ON THE SOUTHERLY LINE OF RECORD OF SURVEY NO. 17111 FILED IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY ON AUGUST 24, 2001; THENCE NORTH 71O55'34" WEST (SEE CERTIFICATE OF CORRECTION OF SAID RECORD OF SURVEY RECORDED NOVEMBER 29, 2001 AS DOC. NO. 2001-0869050 IN THE OFFICE OF SAID COUNTY RECORDER) ALONG THE SOUTHERLY LINE OF SAID RECORD OF SURVEY 113.37 FEET; THENCE LEAVING SAID SOUTHERLY LINE NORTH 8O26'47" WEST 86.33 FEET, NORTH 81O33'13" EAST 49.99 FEET, NORTH 8O26'47" WEST 85.24 FEET, NORTH 11O57'45" EAST 71.31 FEET, NORTH 8O26'47" WEST 152.55 FEET TO THE SOUTHERLY LINE OF FUTURE CANNON ROAD; THENCE EASTERLY ALONG THE SOUTHERLY LINE OF FUTURE CANNON ROAD NORTH 81O33'13" EAST 335.71 FEET TO THE BEGINNING OF A TANGENT CURVE CONCAVE TO THE NORTH AND HAVING A RADIUS OF 1451.00 FEET; THENCE EASTERLY ALONG SAID CURVE 429.98 FEET THROUGH A CENTRAL ANGLE OF 16"58'43"; THENCE LEAVING THE SOUTH LINE OF FUTURE CANNON ROAD SOUTH 25'25'30'' EAST 135.56 FEET TO THE SOUTHERLY LINE OF SAID RECORD OF SURVEY; THENCE WESTERLY ALONG SAID SOUTHERLY LINE SOUTH 51'39'15'' WEST 67.24 FEET, SOUTH 48'19'13'' WEST 404.31 FEET, SOUTH 65"09'20" WEST 386.97 FEET TO THE POINT OF BEGINNING, ALL AS SHOWN ON THE ATTACHED PLAT FOR CONVENIENCE SAKE. THE AREA OF ABOVE DESCRIBED PROPERTY IS 248,292 S.F. OR 5.70 ACRES. W:\MSOFFICE\WINWORD\981020\ADJ 01-13.I.GL.doc: BASIS OF BEARING: COURSE 8 PER RECORD OF SURVEY 171 11 BEING S 65'09'20" W /