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HomeMy WebLinkAboutPR 00-08; DSK Carlsbad Partners, LLC; 2000-0527875; EasementRECORDING REQUESTED BY AND WHEN RECORDED, PLEASE MAIL TO: City Clerk City of Carlsbad 1200 Carlsbad Village Drive Carlsbad, California 92008 MAIL TAX STATEMENTS TO: EXEMPT DOC # 2000-0527875 clct 023 2000 2:56 PM WFICIAL RECORDS SW DIEGO COUNTY RECORDER’S OfFICE GREGOKY J. SHITHv COUNTY KECOKDER FEES: 0.00 oc: NA Please record. the document at no fee as it is to the benefit of the District (Gov. Code [6103].) Space above this line for Recorder’s use. The undersigned grantor(s) declare(s): Documentary transfer tax is $ ( 0.00 fi/fl ) computed on full value of property conveyed, or ( ) computed on full value less value of liens and Assessor’s Parcel No.: 212-062-04 Project No. & Name: PR 00-08 Carlsbad Research Center, Lot 12 CT 99-17 encumbrances remaining at time of sale. ( ) Unincorporated area: (x) City of Carlsbad , and FOR A VALUABLE CONSIDERATION, receipt of which is hereby acknowledged. CARLSBAD MUNICIPAL WATER DISTRICT GRANT DEED OF WATER LINE EASEMENT DSK Carlsbad Partners, a California Limited Liability Company, does hereby grant to CARLSBAD MUNICIPAL WATER DISTRICT, a Public Agency organized under the Municipal Water Act of 1911, and a Subsidiary District of the City of Carlsbad, its successors and assigns, an easement. Purpose: the easement granted herein shall be granted for the following purposes: the construction, operation, repair, reconstruction and all activities necessary to construct, reconstruct, operate, maintain and repair facilities designed for the general purpose of collecting, storing, transporting, pumping and treating all water, including surface water? stream water, flood water and ground water flowing into said facilities, and all natural and artificial drainage ditches and structures of any kind, whether above or below the surface of the ground. Said facility may include pipelines, pumping facilities, structures designed to control the flow of water and all facilities and structures associated with said use which are designed to facilitate the use and protect the facility from natural and other forms of damage including, but not limited to, erosion controi facilities, fences, gates, doors, locking devices, alarms, lights, and all other protective facilities and devices. The use shall also include a means of access to and from said facility for the purpose of constructing, operating, repairing, maintaining, inspecting and Eng\Word\Docs\Masters\Forms\Grant Deed of Water Line Easement 05/l 7190 Rev. I ,.%, ’ n ? ,’ I, reconstructing said facility. The uses described herein shall be exclusive to the Grantee. Grantor herein agrees that no buildings and/or structures will be erected, walls constructed, fences built nor trees planted, nor may the easement be used by the Grantor or any other person or entity, including other utilities, whether public or private, for uses whether compatible or incompatible with the uses described herein without the express written approval of the Grantee. LOCATION OF THE EASEMENT: The easement granted herein shall be located within and upon the properties more particularly described in Exhibit “A” and Exhibit “B” attached hereto and by this reference made a part hereof. Executed by the Grantor this 2088 . k day % GRANTOR: . A4 /rl mbdev fl #Iof signatory) By: (sign here) (title of signatory) (Notarial acknowledgement of execution of PROPERTY OWNER must be attached.) (President or vice-president and secretary or assistant secretary must sign for corporations. If only officer signs, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowering that officer to bind the corporation.) (If signed by an individual partner, the partnership must attach a statement of partnership authorizing the partner to execute this instrument.) . BROWER, Deputy General Counsel Eng\WordUhcsWlasters\Forms\Grant Deed of Water Line Easement 05/17/98 Rev. State of e@uFa/z/tP/kq County of 5 k-H &-WI On JYfQ .ul e /: &7@ 0 DL personally appeared ’ @PlHM. /%rnw&& Name and Title of Officer (e.g., “Jane Doe, N&y Public”) / x sc/cLcc- , Name(s) of Signer(s) pd6 ersonally known to me - OR - 0 proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/mubscribed to the within instrument and acknowledged to me that he/she/they executed the *vwl.wlMMw s cumrmml lllolw @2%gi-p 1 same in his/ker/tf& authorized capacity(ies), and that by his/herItMY signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. i WITNESS my hand and official seal. LwvtLJb . Signature of Notaly Public OPTIONAL Though the information below is not required by law, if may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document. Description of Attached Document Title or Type of Document: Document Date: Number of Pages: Signer(s) Other Than Named Above: Capacity(ies) Claimed by Signer(s) Signer’s Name: Cl Individual 0 Corporate Officer Title(s): 0 Partner - Cl Limited 0 General 0 Attorney-in-Fact 0 Trustee C Guardian or Conservator 0 Other: Signer Is Representing: TOD of thumb here Signer’s Name: 0 Individual 0 Corporate Officer Title(s): 0 Partner - 0 Limited C General Cl Attorney-in-Fact 0 Trustee 0 Guardian or Conservator 0 Other: Signer Is Representing: Q 1995 National Notary Association l 8236 Remmet Ave., P.O. Box 7164 l Canoga Park, CA 91309.7164 Prod. No. 5907 Reorder: Call Toll-Free 1-600-676-6627 JANUARY 24, 2000 J.N.: 99-1030 PAGE 1 OF 5 PARCEL 1: PROO-08 EXHIBIT "A" WATER EASEMENT A PORTION OF LOT 12 OF CARLSBAD TRACT NO. 81-10 IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 10330, MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWESTERLY CORNER OF SAID LOT 12; THENCE ALONG THE SOUTHERLY LINE OF SAID LOT 12 SOUTH 52'24'34" EAST, 7.02 FEET TO THE BEGINNING OF A TANGENT 658.00 FOOT RADIUS CURVE CONCAVE NORTHERLY; THENCE EASTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 19*11'55", AN ARC DISTANCE OF 220.48 FEET TO THE TRUE POINT OF BEGINNING, A RADIAL LINE TO SAID POINT BEARS SOUTH 18*23'31" WEST; THENCE NON-TANGENT TO SAID CURVE AND LEAVING SAID SOUTHERLY LINE NORTH 16*07'01" EAST, 73.28 FEET; THENCE NORTH 38*12'10" WEST, 96.28 FEET; THENCE NORTH 06*47'50" EAST, 104.67 FEET TO THE BEGINNING OF A TANGENT 160.00 FOOT RADIUS CURVE CONCAVE EASTERLY; THENCE NORTHERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 30'54'53" AN ARC DISTANCE OF 86.33 FEET; THENCE TANGENT TO SAID CURVE NORTH 37"42'43" EAST, 25.62 FEET TO THE BEGINNING OF A TANGENT 510.00 FOOT RADIUS CURVE CONCAVE SOUTHEASTERLY; THENCE NORTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 14*05'07" AN ARC DISTANCE OF 125.38 FEET; THENCE TANGENT TO SAID CURVE NORTH 51°47'50" EAST, 225.79 FEET; THENCE SOUTH 36*05'53" EAST, 190652 FEET TO THE BEGINNING OF A TANGENT 190.00 FOOT RADIUS CURVE CONCAVE NORTHEASTERLY; THENCE SOUTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 02°06'17'f AN ARC DISTANCE OF 6.98 FEET; THENCE TANGENT TO SAID CURVE SOUTH 38'12'10" EAST, 187.32 FEET TO THE BEGINNING OF A TANGENT 190.00 FOOT RADIUS CURVE CONCAVE NORTHEASTERLY; THENCE SOUTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 02*06'17" AN ARC DISTANCE OF 6.98 FEET; THENCE TANGENT TO SAID CURVE SOUTH 40*18'27" EAST, 186.61 FEET; THENCE SOUTH 54°20'03" WEST, 30.26 FEET; THENCE NORTH 40*18'27" WEST, 20.07 FEET TO A POINT HEREINAFTER REFERRED TO AS POINT "A"; THENCE NORTH 40*18'27" WEST, 16.36 FEET; JANUARY 24, 2000 J.N.: 99-1030 PAGE 2 OF 5 THENCE NORTH 49*41'33" EAST, 10.16 FEET; THENCE NORTH 40*18'27" WEST, 56.38 FEET; THENCE SOUTH 49'41'33" WEST, 3.64 FEET; THENCE NORTH 40*18'27" WEST, 20.00 FEET; THENCE NORTH 49O41'33" EAST, 3.64 FEET; THENCE NORTH 40*18'27" WEST, 33.40 FEET; THENCE SOUTH 49"41'33" WEST, 20.00 FEET; THENCE NORTH 40°18'27' WEST, 35.00 FEET; THENCE NORTH 49'41'33" EAST, 16.44 FEET; THENCE NORTH 38'12'10" WEST, 18.85 FEET; THENCE NORTH 51*47'50" EAST, 3.30 FEET; THENCE NORTH 38*12'10" WEST, 85.65 FEET; THENCE SOUTH Sl"47'50" WEST, 11.06 FEET; THENCE NORTH 38°12'10" WEST, 20.00 FEET; THENCE NORTH 51°47'50" EAST, 11.06 FEET; THENCE NORTH 38°12'10" WEST, 62.29 FEET; THENCE SOUTH 51*47'50" WEST, 3.21 FEET; THENCE NORTH 38'12'10" WEST, 20.00 FEET; THENCE NORTH 51°47'50" EAST, 3.38 FEET; THENCE NORTH 36°05'53" WEST, 168.82 FEET; THENCE SOUTH 51*47'50" WEST, 4.06 FEET; THENCE SOUTH 38*12'10' EAST, 13.63 FEET; THENCE SOUTH 51*47'50" WEST, 20.00 FEET; THENCE NORTH 38'12'10" WEST, 13.63 FEET; THENCE SOUTH 51*47'50" WEST, 69.99 FEET; THENCE SOUTH 38'12'10" EAST, 21.16 FEET; THENCE SOUTH 51"47'50" WEST, 20.00 FEET; THENCE NORTH 38*12'10" WEST, 21.16 FEET; THENCE SOUTH 51*47'50" WEST, 10.76 FEET; THENCE SOUTH 38*12'10" EAST, 31.05 FEET; THENCE SOUTH 51*47'50" WEST, 30.00 FEET; THENCE NORTH 38*12'10" WEST, 27.50 FEET; THENCE SOUTH 51'47'50" WEST, 10.58 FEET; THENCE NORTH 38*12'10" WEST, 13.55 FEET; THENCE SOUTH 51*47'50" WEST, 34.63 FEET TO THE BEGINNING OF A TANGENT 490.00 FOOT RADIUS CURVE CONCAVE SOUTHEASTERLY; THENCE SOUTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 14*05'07" AN ARC DISTANCE OF 120.46 FEET; THENCE TANGENT TO SAID CURVE SOUTH 37*42'43" WEST, 25.62 FEET TO THE BEGINNING OF A TANGENT 140.00 FOOT RADIUS CURVE CONCAVE SOUTHEASTERLY; THENCE SOUTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 26'58'42" AN ARC DISTANCE OF 65.92 FEET; THENCE NON-TANGENT TO SAID CURVE SOUTH 83*12'10" EAST, 17.62 FEET; THENCE SOUTH 06°47'50' WEST, 20.00 FEET; THENCE NORTH 83*12'10" WEST, 17.95 FEET; THENCE SOUTH 06'47'50" WEST, 5.18 FEET TO A POINT HEREINAFTER REFERRED TO AS POINT "B"; THENCE SOUTH 06*47'50" WEST, 20.00 FEET; THENCE SOUTH 06*47'50" WEST, 60.81 FEET; THENCE SOUTH 38*12'10" EAST, 98.26 FEET; THENCE SOUTH 16*07'01" WEST, 84.03 FEET TO THE BEGINNING OF A NON- TANGENT 658.00 FOOT RADIUS CURVE CONCAVE NORTHERLY, SAID POINT ALSO BEING A POINT ON THE SOUTHERLY LINE OF SAID LOT 12, A RADIAL LINE TO SAID POINT BEARS SOUTH 16*38'59" WEST; - JANUARY 24, 2000 J.N.: 99-1030 PAGE 3 OF 5 THENCE WESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 01*44'32" AN ARC DISTANCE OF 20.01 FEET TO THE TRUE POINT OF BEGINNING. AREA 0.68 ACRES PARCEL 2: A PORTION OF LOT 12 OF CARLSBAD TRACT NO. 81-10 IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 10330, MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT SAID POINT "B"; THENCE SOUTH 83*12'10" EAST, 39.82 FEET; THENCE NORTH 06*47'50" EAST, 3.24 FEET; THENCE SOUTH 83*12'10" EAST, 20.00 FEET; THENCE SOUTH 06*47'50" WEST, 3.24 FEET; THENCE SOUTH 83°12'10" EAST, 103.13 FEET; THENCE NORTH 51*47'50" EAST, 64.47 FEET; THENCE SOUTH 38°12f10w EAST, 39.89 FEET; THENCE NORTH 51*47'50" EAST, 10.57 FEET; THENCE SOUTH 38*12'10" EAST, 20.00 FEET; THENCE SOUTH Sl"47'50" WEST, 10.57 FEET; THENCE SOUTH 38*12'10" EAST, 102.84 FEET; THENCE SOUTH 00*50'27" WEST, 89.54 FEET; THENCE NORTH 20°06'02" EAST, 13.21 FEET; THENCE SOUTH 69'53'58" EAST, 20.00 FEET; THENCE SOUTH 20°06'02" WEST, 23.65 FEET; THENCE SOUTH 69*53'58" EAST, 29.64 FEET; THENCE NORTH 20*06'02" EAST, 4.59 FEET; THENCE SOUTH 69*53'58" EAST, 20.00 FEET; THENCE SOUTH 20*06'02" WEST, 4.59 FEET; THENCE SOUTH 69*53'58" EAST, 14.14 FEET; THENCE NORTH 68°52'11" EAST, 58.33 FEET TO THE BEGINNING OF A TANGENT 190.00 FOOT RADIUS CURVE CONCAVE NORTHWESTERLY; THENCE NORTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 07*28'37" AN ARC DISTANCE OF 24.79 FEET; THENCE TANGENT TO SAID CURVE NORTH 61*23'34" EAST, 97.70 FEET TO THE BEGINNING OF A TANGENT 140.00 FOOT RADIUS CURVE CONCAVE NORTHWESTERLY; THENCE NORTHEASTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 07*03'31" AN ARC DISTANCE OF 17.25 FEET; THENCE TANGENT TO SAID CURVE NORTH 54*20'03" EAST, 63.01 FEET TO SAID POINT "A", SAID POINT ALSO BEING A POINT ON THE WESTERLY LINE OF SAID PARCEL 1; THENCE ALONG SAID WESTERLY LINE SOUTH 40*18'27" EAST, 20.07 FEET; THENCE LEAVING SAID WESTERLY LINE SOUTH 54°20'03" WEST, 64.64 FEET TO THE BEGINNING OF A TANGENT 160.00 FOOT RADIUS CURVE CONCAVE NORTHWESTERLY; THENCE SOUTHWESTERLY ALONG SAID I, . JANUARY 24, 2000 J.N,: 99-1030 PAGE 4 OF 5 CURVE THROUGH A CENTRAL ANGLE OF 07*03'31" AN ARC DISTANCE OF 19.71 FEET; THENCE TANGENT TO SAID CURVE SOUTH 61'23'34" WEST, 97.70 FEET TO THE BEGINNING OF A TANGENT 210.00 FOOT RADIUS CURVE CONCAVE NORTHWESTERLY; THENCE SOUTHWESTERLY ALONG SAID CURVE THROUGH A CENTRAL ANGLE OF 07*28'37" AN ARC DISTANCE OF 27.40 FEET; THENCE TANGENT TO SAID CURVE SOUTH 68*52'11" WEST, 65.85 FEET; THENCE NORTH 69*53'58" WEST, 63.77 FEET TO A POINT HEREINAFTER REFERRED TO AS POINT "C"; THENCE NORTH 69*53'58" WEST, 20.00 FEET; THENCE NORTH 69'53'58" WEST, 18.08 FEET; THENCE NORTH OO"50'27" EAST, 5.07 FEET; THENCE NORTH 89*09'33" WEST, 27.85 FEET; THENCE NORTH 00*50'27" EAST, 23.00 FEET; THENCE SOUTH 89'09'33" EAST, 7.84 FEET; THENCE NORTH OO"50'27" EAST, 16.61 FEET; THENCE SOUTH 89*09'33" EAST, 20.01 FEET; THENCE NORTH OO"50'27" EAST, 43.74 FEET; THENCE NORTH 89*09'33" WEST, 7.18 FEET; THENCE NORTH OO"50'27" EAST, 10.00 FEET; THENCE SOUTH 89°09'33" EAST, 7.18 FEET; THENCE NORTH OO"50'27" EAST, 9.29 FEET; THENCE NORTH 38*12'10" WEST, 135.64 FEET; THENCE SOUTH 51*47'50" WEST, 52.75 FEET; THENCE NORTH 83"12'10" WEST, 111.42 FEET; THENCE SOUTH 06*47'50" WEST, 10.25 FEET; THENCE NORTH 83*12'10" WEST, 20.00 FEET; THENCE NORTH 06*47'50" EAST, 10.25 FEET; THENCE NORTH 83*12'10" WEST, 39.82 FEET TO A POINT ON THE EASTERLY LINE OF SAID PARCEL 1; THENCE ALONG SAID EASTERLY LINE NORTH 06*47'50" EAST, 20.00 FEET TO THE POINT OF BEGINNING. AREA 0.43 ACRES PARCEL 3: A PORTION OF LOT 12 OF CARLSBAD TRACT NO. 81-10 IN THE CITY OF CARLSBAD, COUNTY OF SAN DIEGO, STATE OF CALIFORNIA, ACCORDING TO MAP THEREOF NO. 10330, MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT SAID POINT "C"; THENCE SOUTH 20*06'02" WEST, 40.97 FEET TO THE BEGINNING OF A NON-TANGENT 70.00 FOOT RADIUS CURVE CONCAVE SOUTHERLY, SAID POINT ALSO BEING A POINT ON THE SOUTHERLY LINE OF SAID LOT 12, A RADIAL LINE TO SAID POINT BEARS NORTH 43*26'53" EAST; THENCE NORTHWESTERLY ALONG THE ARC OF SAID CURVE THROUGH A CENTRAL ANGLE OF 16*59'52" AN ARC DISTANCE OF 20.77 FEET; THENCE NON-TANGENT TO SAID CURVE AND LEAVING SAID SOUTHERLY LINE . . . -. NORTH 20*06'02" EAST, 20.00 FEET AMA 0.02 ACRES JANUARY 24, 2000 J.N.: 99-1030 PAGE 5 OF 5 EAST, 35.67 FEET; THENCE SOUTH 69'53'58" TO THE POINT OF BEG,INNING. W:\MSOFFICE\WINWORD\99103O\WtKeSmt.lgl I.. . ., ’ 1 - LiU- 72 OF CARLSBAD RESEARCH C’i5N?iiU WATER GISEMENT - PARCEL I WATER E4SEMENT - PARCEL 2 WATER GISEMENT - PARCEL 3 - - - - PROPERN L/NE ------ EXISTING DISEMENT LINES leAsIs THE &AS/S OF BfiRiNGS FOR 7H/S PLAT IS A PORnON OF THE CENTERLINE OF PRIESTLY DRIVE AS SHOWN ON PARCEL MAP NO. 142.58 I.E. N52’24’34?4. E LOT 12 OF CARLS6MD 7724CT NO. 81-10 IN 7HE CITY OF CARLS6HD COUNTY OF SIN DIEGO, SDITE OF CHLIFORNBI, ACCORDING TO MP THEREOF NO. 10330, F/L ED IN 7YYE OFK’CE OF THE COUNTY RECORDER OF 3;4N DIEGO COUN% FEBRUARY 78, 1982. cr 99-17 EASEMENT DAlA I @ on&gJ554RlffG hwus uiwv : N 52-24’34’ W - zoz’ A=lP’ll%- 6I5tm?’ 220.48’ 3 Iv rso7’or’r - 7J28’ 4 N 38W2'10' W - 96.28' ‘25.38’ 9 1 N 5/*47’50” f 1 - 1 22579’ ..-- - , .--.- i &8~7e W 1 - 1 56.38’ 201 srsul*P3’w I-IJM’ 21 1 N 40’18’21’ W 1 - 1 20.00’ 22 I N 4s’rrlu’ f I - I A54’ . . -- .- . - -. , . ----- s 5/‘17’50’ w - 11.06’ 31 N 3i9.12’10’ W - 2p.00’ 32 N 51’47’50” f - ? f.06’ SEE .5M’ii 4 FOR COM7tIU477ON OF MDI ;rABLt: G:\JOBS\991030\9930PO1.DWG 6-13-00 114640 am EST . - - .‘. . air SHEET 3 -- LOT 72 OF CARLSBAD RESEARCH CEl7iiR kz-Pm I 5woFQdwM su!(. IO0 klieod. MM wma y-y-m Rosuir*l 7c+93,-7700 w-3 Fmc760-w-860 REQUESTED BY: DSK CARLSBAD WATER EASEMENT SHT. 2 OF 5 SHT! 1 PREPARED BY: i?4RtiERs, UC PAT@&U N. O’DAY 683h PROO-08 A-p-N. 212-062-o P.O. BOX 2156 RANCH0 SANTA FE. CA. 92067 R.C.E. 27&t MP. 3/31/01 DATE 01-12-00 G:\JOBS\991030\9930POl~DWG 6-13-00 114640 am EST xke&za&Lw~9 .suaw..m BOUNDARY -)t ’ 1 I I kI 9 s d h 4 I / h I % 3 si * r 5. '4 d .I,. ’ - . . ., LOT 12 OF CARLSBAD RE55ARCff CENTER 63’ I - - - f- - I BWNDARY -I=-- --- su6D~v=3- _I --P----M ~~~~--~~~--~-~~~~- 1 - SUiD~M9~ I BWWARY a 1 m m CkQI 1 14 . $WEUE# BY: 9RTNERS, -ii .O. BOX 2156 9NCHO SANTA FE, CA. 92067 i:\JOBS\991030\9930PO1.DWG a LOT 12 OF CARLSBAD \ GWSIJNG t27ER Ike DLDlCA770V Fm PU6’LX TO WY of CARL. P,fR MAP NO. 1033D ,\\\\WI I I ;&QUES&E& BY: PARTNERS, UC P-0. BOX 2156 ~:\JOBS\991030\9930POLDWG 6-13-00 11:16:10 am EST hbk-s.iE4m~AP EASEMENT DATA @ MisgmfaNG R4DILs LAmi 35 N 3rf2’10’ w - 2000 36 N 51’47’50 E - LB’ 37 N 3soS’sJ’W - 168.82’ 38 s 5177’50’ w - 4.06’ SiZ SHE67 5 FOR i27h7JNUGWN EXHIBIT ‘B’ OF A4M 546” WATER EASEMENT SHT. 4 OF 5 SHTS. 1 PREPARED By: LOT 12 OF CARLSBAD RESEARCH CEITER 1 EASEMENT DATA 1 - . - -. - . . . - ._-- ii 1 A- 0?'44'32' 1 65B.GO'I 2001' 65 I s 8sr2’m’E I - I 3.612’ I I ----- 661 N06v7’50’E I-1 J24’ 67 i .c ~?'17'117*~ I - I 2QoO’ , --v-s” b I ii I cfw47'~Dw - --_-- , .-““,I I ii I c Rz-17 324’ 70’ E 70 ” -*“’ - IO%xN’ tV5/475O’E - 6447’ 71 s 38v2’?O’E - 39..w 72 N 51’47’50’ E - 10.57’ 73 S 38V2’10” E - 20m* 74 s 5?‘17’50’ w - 10.57’ A= 07V33r' 110.00' 1i25 89 NSI’a’OJ”E - 6..OI’ 90 s54mm’w - 6464 - -. -- -- _ ..-. 1 91 I A= oTm31” I 16000’ I 19.71’ 1 REQUESTED BY: DSK CAfXSBAD I WATER EASEMENT SHT. 5 OF 5 SHTS. 1 PREPARED BY: PARTNERS, LLC PATRIm. O’DAY P.O. BOX 2156 4272% p R 0 0 - (3 8 A.P.N. 212-062-04 RANCH0 SANTA FE, CA 92067 R!tlf. 2721&P. 3/31 /Ol DATE 01-12-m G:\JlJBS\991030\9930P01.DWG 6-13-00 11:16:10 am EST 1 EASEMENT DATA 1 @o> DELIT~BMIM MDIUS UNUH 92 S 61’23’jl’ W - 91: 70’ 93 A = OT28’J7’ 21o.m’ 21.40’ 94 s W52’11’ w - 6585’ 95 N 6933’58’ W - 6377' 96 N 69’53’58’ "l.. I t 97 _- -- _- l ; - 20.00’ - -- N 6953’%* W l&08’ I - 5.07’ .+r - . -.-. 20.01’ !X?7’E - G-74’ t9’3.3’w - 7m' t 109 1 N .Sl2’/0” W 1 - 1 135.64’ 1 __ __ .- _ II0 1 s 5lU7I50’ w I - I 52.75’ I 111 N &?J .- .- ~_ ._ -- -. , rI2'1o'w I - I 111.42’ I 112 s or47’so’w - 10.25’ f1.T N tWl2’lO’W - 20.00’ SEE SHE- I & 4 fOR ADD/l7OMl n4Gl rAHE.x I EXHIBIT ‘8’ I CERTIFICATION FOR ACCEPTANCE OF DEED ,I ,_ ( ,I ,_ ( ,.l:. ,.l:. :,: / ;, : I i :,: / ;, : I i .:_ .:_ .j .j ‘- ‘- ‘I_, ‘I_, _: _: ’ ’ . . . . :_< :_< ill : ill : :+ Ii” :+ Ii” i,i~;~:.j.~.~~~’ ” i,i~;~:.j.~.~~~’ ” >s *$>,&j.i.- .i.: >s *$>,&j.i.- .i.: ,_f_:: ,_f_:: yp:’ A,, 1::: : y: yp:’ A,, 1::: : y: ; ‘: .’ ; ‘: .’ 2.; _j $3 ;i ,,i.i.,,, : - 2.; _j $3 ;i ,,i.i.,,, : - This is tqS$$wfj~#@ihe interest in real property con,&(j by th#‘:heed or grant This is tq#$vfif#f&~he interest in real property con,&(j by ttj#‘:heed or grant 3 ?&:I^: 3 ?&:I^: .’ .’ ^, ^, .’ .’ ::.is:y,,$ :. ::.is:y,,$ :. < < dated May 11; 206O:from DSK~Carlsbad P&ners;LLC, to the City of Cansbad, a dated May 11; 206O:from DSlCCz&bad P&ners;LLC, to the City of Cansbad, a ;j 2 ;j 2 : ; j ., :_ : ; j ., :_ Municipal Corporation;fo the City of Carlsbad, a Municipal Corporation; is hereby Municipal Corporation;fo the City of Carlsbad, a Municipal Corporation; is hereby accepted by the City CouncifFdflthe City of Carlsbad, California, pursuant to Ordinance accepted by the City CouncifFdflthe City of Carlsbad, California, pursuant to Ordinance No. NS-422, adb~terf~on.‘.~~ptember 16, 19971 a&the grantee.consent&to the No. NS-422, adb~terf~on.‘.~~ptember 16, 19971 a&the grantee.consent&to the _, _, i, +::.; I : i, +::.; I : : s ),I is ; : s ),I is ; 1% 1% ‘-~-& 3, ,, ‘-~-& 3, ,, recordation therec#j!by its%&@ythorized officer. recordation therec#j!by its%&@ythorized officer. <’ <’ : : ~~‘:g#:l:;ri : ~~‘:g#:l:;ri : >‘I : ‘SC$ j.& >‘I : ‘SC$ j.& ..: ..: ,,t ‘, ,,t ‘, ; js: ; I,; ; js: ; I,; ; j. ; j. 3 i_!_ ’ j 3 i_!_ ’ j ‘ ‘ :; Lz.j ;,.;:j :; Lz.j ;,.;:j ( :: ( :: .‘>,l jl .‘>,l jl .’ .’ ;!jii ;!jii ,‘: ,‘: ,: ,: ,;,:: ,;,:: ..: ..: ,I’ ‘,,1 ;_;.. ,I’ ‘,,1 ;_;.. ,,; ,I: ,,; ,I: .‘. .‘. ,: ,: : i. : i. ,::>;.,, ,::>;.,, I b I b DATED: September 12,200O DATED: September 12,200O Sent. By:\SCJACCA IXJELOPMENT; __ 619 756 5145; x. . Mar-2Q.00 10:51; Page 2 OPEUTING AGREEMENT FOR DSK CARLSBAD PARTNERS. LLC This Operating Agreement (the “Agreement”) is made and e&red into as of the 16lh day of December, 1998, by and between RICHARD C. DENTT, FRANK J. SCJACCA, and JON R KURTIN, whose principal business address is 3838 Can&o de1 Rio North, Suite 300, San Diego, California 92108, (collectively, the “members”). WHEREAS, the parties have agreed tu urganiz~ a limited liability company named DSK CARLSBAD PARTNERS, LLC (hereinafter referred to as the “Company”); and WHEREAS, this Agreement sets fbrth the understandings of the parties htieto with respect to the organiation and operation of the Company and the scope and conduct ofita business. NOW, THEREFORE, in consideration of mutual covenants and other good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged, the parties hereby agree as follows: 1. ORGANJZATION. a. Term. The Company &all continue until December 31,2038, unless the Company is sooner terminated, as berein provided. b. Character of Business: Powers. The Company is formed to transact the business set forth in its Articles of Organkation in compliance with the laws of the States of California, codified in the California Corporations Code, S&on 17000 a a. (the “Act”), and, in relation to the transaction of such business, to have and exercise any and all of the powers and rights which a limited liability company may lawfully exercise pursuant to the Act. The Company’s ability to incur debt shall be limited to the debt which relates to the initial acquisition financing and subsequent development and construction fhnciug au&r joint venture financing of the Property consisting of approximately 7.71 acres and described as Lot 12 of C&bad Tract 8 l-1 0 of the Carl&ad Research Center, Carlsbad, California (the “Property”) and liabilities in the ordinary course of business relating to the ownership and operation of the Property. The Company shall be prohibited from dissolving, liquidating, consolidating, merging or selling all or substantially all of its assets or amending its Articles of Organization so long as the initial financing for its purchase of the Property remains in place. . dskcdE~.owc 1 Sent By:> SCIACCA D<VECOPMENT; I * - 619 756 5145; Mar-20-00 lo:51 ; Page 3 c. Certain Clefinitions. As used herein, the following terms have the following meanings: (1) “Distribution Percentage” means, for each Member, the percentage set forth opposite such Member’s name, as follows: Distribution ember Percentage Richard C. Dentt 33 l/3% Frank J. Sciacca 33 l/3% Jon R. Kurtin 33 113% TOTAL 100.0% II l * * m for each Member, also, shall mean each above-mentioned percentage, as may bc adjusted from time-to-time, according to the provisions of this Agreement. (2) ‘Qperatinv Proceeds” for the applicable period means the gross receipts of the Company during such period plus any reductions in funded reserves arising out of the reversal of such reserves, less the following: (a) cash operating expenses paid during such period, (b) interesl and ptincipal paid during such period on any indebtedness of the Company, (c) cash expenditures for capital improvements and other capital items paid during such period, and (d) additions to funded reserves made during such period. d. Separateness Covenants. The Company agrees to abide by the following “separateness covenants”: (1) (2) (3) (4) (6) (7) (8) To maintain its books and records separate fkom any other person or entity. To maintain its accounts separate from any other person or entity. Not to commingle assets with Lhose of any other entity. To conduct its own business in its own name. To maintain separate financial statements. To pdy its own liabilities out of its own fknds. To observe all limited liability company formalities. To maintain an arm’s-length relationship with its afllliates. 2 Sent, By: 5CIACCA DEVELOPMENT; 619 758 5145; -_ Mar-20-00 10:52; Page 4 (9) (10) 01) WI (13) w (13 (16) (17) To pay the salaries of its own employees and to maintain a sufkient number of employees in light of its contemplated business operations. No1 to guarantee or become obligated for the debts of any other entity or hold out its credit as being available to satis& the obligations of others. Not to acquire obligations or securities of its Members. To al locate fairly and reasonably any ovcrhcad for shared offke space. To use separate stationery, invoices and checks. Not to pledge its assets for the be&it of any other entity or make any loans or advances to any entity. To bold itself out as a separate entity. To correct any known misunderstanding regarding its separate identity. To maintain adequate capital in light of its contemplated business operations. 2. CAPITAL CONTRIEWTIONS. a. mof The following Members shall contribute to the capital of the Company, in oasb, the respective amounts shown opposite their names, as follows: Cash Member Q&&J&Q Richard C. Dentt S466,666.00 Frank J. Sciacca $466,666.00 Jon R. Kurtin M66,667.00 'SOTAL $1,400,000.00 b. Contributions of Pronertv. The following Members shall contribute to the capilat of the Company the property and assets described for each respective member with the respective values shown opposite their names, as follows: Sent. By: GCIACCA DEVELOPMENT; . . .,’ _ 619 756 5145; Mar-20-00 10:52; Page 5 Pr0perty Contributios None None None TOTAL None Note: If “None” is stated above under “Property Contribution” then no Exhibit “B” is attached. C. Credits to Car&d ACCOQQ,& . Each such contribufinf; Member’s Capital Account shall be credited with the cash amounts and the values of the property as set forth above. d. Nom-v C ’ Tn no event shall any Member be be. required to contribute Capital to restore a negative balance in such Member’s Capital Account upon the liquidation of the Company or such Member’s Tnterest, or at any other time. 3. DTSTRTBUTIONS. The Company’s Operating ~ceeds shall be distributed to the Memberspro ruta zcording 10 U&r respective Distribution Percentages, at such times as the Managing Members shall determine by Major Decision Approval (but not Tess frequently thau WdYb 4. ALLOCATION OF PROFITS AND LOSSES, a. Prulits and Losses. Subject to Section 4.b., the Company’s income, gain, loss, deductions and credits (and items thereoi), tbbr each fiscal year of the Company, shall be allocated among the Members (for both book and hx purposes)pro rata according to their re.spective Distribution Percentages. b. AlA. The Members may, by Major Decision Approval, specially allocate (for book and/or tax purposes) items of income, gain, loss and deduction among the Members during any fiscal year of the Company and/or upon the liquidation of a Member2 Interest or the liquidation and termination of the Company, .W as to cause the Member’s Capital Accounts to be consistent with the manner in which they agreed lo share distributions hereunder (as reflected in Section 3). 5. ACCOUNTWG. a L. The books and records of the Company shall bt: kept, and the financial position and the results of its operations recorded, in accordance with generally accepted accounting methods, consistently applied, except that the Members’ Capital Accounts shall be maintained as provided in this Agreement. The Company shall be on the cash or accrual basis, as agreed upon by the Members, for both tax and accounting purposes. Jon R. Sent By: SCIACCA DEVELOPMENT; . . '.* __ 619 756 5145; Mar-20-00 10:52; Page 6 Kurtin is hereby designated as the “tax matters Dartner” (as such term is defined in Code section 623 1 (a)(7)) or the equivalent representative for the Company. b. Fiscal Year. The fiscal year of the Company shall be the calendar year. c. Cm. A capital account (a “Canital Account”) shall be established for each Member and determined, maintained and adjusted in accordance with Treasury Regulations $1.74-l(b)(2)(iv) and in accordance with the provisions of this Agreement. The Capital Accounts of the Member shall be adjusted upon each distribution of property by the Company to a Member to the extent required by and in the manner described in Treasury Regulations $1.704-1 (b)(2)(iv)(e). d. 754 Election. In the case of a transfer of an Interest which is permitted by this Agreement and which is made in the manner provided in Code section 743, then upon the request of the transfcrcc of such Interest, the Company shall file an election under Code section 754 in accordance with procedures set forth in the Treasury Regulations applicable thereto. 6. POWERS, RTGHTS AND DUTIES OF h+llWBERS. . 3. Manaeer’s vv and Dutiq. Richard C. Dentt, Frank J. Sciacca and Jon R. Kurtin are the Managing Members of the Company and shall have the right, 3uthority, and responsibility to generally supervise and control the operation and management of the business and affairs of the Company and to perform other duties provided elsewhere in this Agreement to be performed by the Members. No Member other than the Managing Members shall take any action as a Member to bind the Company, and shall indemnify the Company for any costs or damages incurred by the Company as a result of the unauthorized action of such Member. b. &q&i ti n 0 Notwithstanding the jJ&mbers. provisions of Section 6.a., no action shall be taken or sum expended OT obligation incurred by the Company or the Managing Members wilb respect lo a matter within the scope of the Unanimous Decisions (as defined below) affecting the Company. “Unanimous Decisions” shall include the following: (1) Filing or consenting to the filing of3 bankruptcy or insolvency petition or othtisc instituting insolvency proceedings; (2) Dissolving, liquidating, consolidating, merging or selling all or substantially all of the assets of the Company; (3) Engaging in any business activity not specified in the Articles of Organization; 3nd dskcdrhanmp 5 Sent: By: gCIACCA DEVELOPMENT; _ 619 756 5145; . , ' Mar-20-00 10:52; - Page 7 (4) Amending the Company’s organisational documents including the Articles of Organiation and this Operat& Agreement. C. Managjn~ Members’ Indemnification. ‘I’he Managing Members shall not be responsible or accountable in damages or otherwise to the Company or the Members for any action taken or failure to act on behalf of the Company unless flu;h action or omission was an intentional bmach of this Agreement or constituted gross negligence, bad fkith or wanton or willfL1 misconduct. Except with respect to the foregoing actions or decisions for which a Managing Member is accouutable to the Company and the other Members, the Company shall indemnify and hold harmless the Managing Member tim any loss, damage, liability or expense incurred or sustained by it by reason of any act performed or any omission far or on behalf of the Company or in furtherance of the busincsa of the Company, including any judgment, award, settlement, reasonable attorneys’ fees and other costs and expenses (which may be advanced by the Company) incurred in connection with the defence of any actual or threatened action, proceeding or claim. d. C. The Company shall not pay the Managing Members or any other Mcmbcr any salary or other compensation for acting as Members hcreundcr or for any service rendered to the Company. The Company shall reimburse the Managing Members or any other Member for all reasonable out-of-pocket cxpcnses incurred by them in connection with the discharge of their obligations under this Agmment or otherwise incurred on behalf of the Company; provided, howcvcr, that the Company shall not reimburse the Members for (1) expenses incurred outside of the Compaq3 usual course of business unless such expenses were authorized by unanimous approval of tbc Members, or (2) any personal expenses. Any disputes as to the reasonableness or nature of expenses submitted by a Member for reimbursement shall be resolved by a majority, by number, of tbc disinterested Members then entitled to vote and such determination shall be conclusive on all parties. C. Determination bv Mem& . Notwithstanding anything to the contrary in &iv Agreement, a determination by those Members owning the requisite Distribution Percentages, as set forth herein, shall be effective whether or not votes are cast at a meeting of Members, or by formal or informal, oral or written instructions of sur;h Members, and such determination so made by the Members authorized to do so shall be effective regardless ofthe number of Members who may actually vote thereon, or have notice of the proposed determination. Tn no event shall a Member who is in default under this Agreement at the time a vote is taken or a decision is ma& be entitled to vote in respect of any act, determination or decision of the Company. 7. ‘TRANSFERS OF INI’ERESTS. a. Restrictions. Except as provided in Section 7.b., no sale, assignment, exchange, Sent By: +CIACCA DEVELOPMENT; _ 619 75% 5145; . , Mar-23-00 10:53; Page an2 tramfer, encumbrance or hypothecation (each a “lkansfq”), shall be made by any Member of the whole or any part of his or her interest without the prior written consent of all of the other MC3Tb-S. If any Transk (o&r than a Trader described herein) is purported to be made or suffered without complying with the applicable provisions in this Section, such puxported Transfer shall be void ab inilio, and an option to purchase such Interest for a Purchase Price equal to the Withdrawal Value shall be deemed to have been granted tc, the Company as of the dale Iht: Company tirst learns of such purport& Transfer, In &or&g this provision, the Company may refusr: to transkr any Interest or any claim thereto in addition, and without prejudice, to any and all other rights or remedies which may be available to it and/or the McmberS. h. Any Member may Transfer (by inter vivus or testamentary disposition) his or her Intcrcst in the Company or any part thereof if such Transfer is made (1) to any Family Member or in the case of a revocable infer vivos trust which is a Member, to the grantor and/or to any Family Member with respect to the grantor, (2) if such Member is a trust, to the beneficiaries of such trust by operation of its governing instrument, (3) to any other Member or Family Member of such other Members, (4) to a trust which has as its beneficiaries only such Member or Family Member(s) of such Member, (5) if such Member is a corporation, limited liability company or partnership, to effect the distribution of its Interest to its shareholders, members or partners (as the case may be), and/or (6) to any partnership, limited liability company or corporation, 100 percent of the beneficial ownership of which is owned, directly or indirectly, by such Member and/or any of the persons (“Pcrmittcd Transfwees”) in (1 ), (2) or (3) above. For purposes of this Section 7.b., the term “J%milv Member” shall mean a spouse, child, spouse of a child, grandchild, sister, brother, or parent (each a “me Relative”) of the person in question or a lineal descendant of nny such Close Relative. L;. .’ Assirmment: Documents. All whole or partial Interests Transferred, pursuant to the provisions of this Article shall be subject to the restrictions and obligations set forth in this Agreemenl. Unless otherwise agreed by the Members or expressly provided herein, no Transfer permitted hereunder shall relieve the assignor from any of its obligations under this Agreement accruing prior to such Transfer. In the event any Interest is Transferred to any person (other than another Member) in accordance with the provisions set forth in this Section, such purchaser or successor to such Interest (the “$kcessor”) shall succeed 10 such Inkrcst as an assignee under the Act and shall have no right to become a substitute Member and participate in the management of the business and affairs of the Company; provided, however, that the Successor shall be liable for the obligations of his assignor under this Agreement. A Successor that is not in default under this Agreement (by reason of his or his prcdccessor’s uncured failure to perform any obligation under this Agreement) shall have the right to petition, by written notice to the Company, to become a yubslilutc Member upon the titten consent of all of the Members. As additional conditions to Sent By: SCIACCA DEVELOPMENT; ’ 619 756 5145; . . *. -4 Mar-20-00 10:53; Page 9112 the Successor’s becoming a substitute Member hereunder, lhe Successor must execute this Agreement (aq amended) and agree to be bound by all of its terms and provisions. Upon the satistiction of the foregoing conditions, the Member shall become a substituted Member. 8. DISSOLUTION OF THE COMPANY. a. Dissolution Acts. No act, thing, occurrence, event or circumstance shall cause or result in the dissolution of the Company except that subject to the restriction contained in the last paragraph of Section 1 .b., the happening of any one of the following events shall work an immediate dissolution of the Company: (1) the sale or other disposition of all or substantially all of the Property; (2) a unanimous written decision of the Members to dissolve and terminate the Company; (3) the termination of the term of the Company pursuant to Section 1 .a of this Agreement; (4) subject to Section G.b., the death, retirement, withdrawal, expukm, or dissolution (each an “Event of Withdrawal”) occurring with respect to a Member, or (5) the bankruptcy of both Managing Members. Without limiting the other provisions hereof, neither the assignment of all or any part of a Member’s Interest in the Company hereunder nor the admission of a new Member shall work the dissolution of the Company. Except as may be otherwise provided in this Agreement ach member agrees that, without the consent of the other Members, a Member may not resign or withdraw from or otherwise cause a voluntary dissolution nf the Company and shall be liable to the other Members for any and all damages and expenses (including attorney fees) proximately caused by such resignation, retirement, withdrawal or other voluntary event causing a dissolution of the Company in violation of this Agreement. b. R- s taco tiuue . mmmy. Upon the occurrence of an Event of Withdrawal, the withdrawing Member (the “Withdra~ember”) shall give notice thereof to the other Members and, if at least one Member remains, such remaining Member may, within the 90-day period t’ollowing such otiurrence, elect, by written agreement, to continue the business and affairs of the Company ,for the balance of the term hereof. If the remaining Members so elect to continue the existence of the Company, (1) the Company shall not dissolve and its business and afFairs shall be carried on without interruption and without the execution of any confirmatory agreement under the same name and under the same terms and provisions as are set forth in this Agreement (as the same may be amended by the remaining Members), and (2) Company or the remaining Members may redeem or purchase tic Withdrawing Member’s Interest as provided for an amount equal to the Withdrawal Value of the Withdrawing Member’s Interest. If the remaining Members do not so elect to continue the existence of the Company, the Company shall not be petitted to liquidate tbe Property (except as permitted in the initial financing transaction documents) without the written consent of the holders of such initial finaucing. The holders of the initial financing may continue to exercise all of their rights under dskGcIis~.uyc 8 Sent By: $CIACCA DEVELOPMENT; __ 619 756 5145; ,.. ': Mar-2_0-00 10:53; Page IO/12 the existing security agreements or mortgages and shall be able to retain the collateml until the initial debt financing has been paid in full or otherwise completely discharged. Determina~ of Withdrawal Value. The withdrawal value (the “JVithdrawal Valuc”)cofthe Member’s Intircst shall be an amount determined by establishing an amount equivalent to the value to which the Member would be entitled as if the Company had wound up its business and affairs and sold all of its business and assets at Fair Market Value on the last day of the month (the “Valuation Date”) immediately prior to date of the Event of Withdrawal. The term “Fair Market Value” as used in this Section shall be an amount equal to the value of the Company Property as determined by an appraiser experienced in appraising properties of similar nature to the Company Property, appointed by the joint written direction of the parries executed and delivered to the appraiser within twenty (20) days after the date of the Event of Withdrawal, and if no appraiser is so appointed, then by an appraiser who shall be appointed by William B. ‘Iicitler, Esq. or the third party accounting firm then doing the Company’s accounting work. The appraisal shall be in writing and when made shall be tiled witi the Company or the third party accounting firm or the individual retained by the Company to assist in determining the Withdrawal Value. If the Fair Market Value of a lvlembership Interest is being determined as the result of an Event of Withdrawal, then the Fair Market Value of the Membership Interest of the Member causing such dissolution shall be reduced by any and all damages sustained by the other Members as a result of the Event of Withdrawal. . Cof. The Purchase Price for an Tnterest under Section 7.a. or tkc Withdrawal Value for an Interest under Section 8.~. shall be paid in cash except that, at the option of the Company or the purchasing Member, up to 100 percent of the Purchase price or Withdmwal Value may bc deferred. The deferred portion of the Purchaw price or the Withdrawal Value shall be evidenced by the promissory note (the “N&“) of the purchasing party(ics) made payable to the Selling or Withdrawing Member, which Note shall have an interest rate af 8 percent and shall be payable in no more than sixty (,60) substantially equal monthly installments. The Note shall be secured by a security agreement (the “Securltv Agreement”) of the purchasing party&s) in the Member’s Membership Tnterest, So long as a purchasing Member does not default in any of the obligations undo the Note, the purchasing Member shall be entitled to vote such interest and to receive all distributions payable thereon. cl. The Closing. Unless otherwise agreed by the parties to the Transfer, the closing on the ‘l’ransfer shall take place thirty (30) days after the receipt of the written appraisal of Fair Market Value and shall t,ake place at the principal offices of the Company. Sent By: qCIACCA DEVELOPMENT; , ‘: _ 619 756 5145; Mar-22-00 10:54; Page 11112 The intcrest shall be assigned to each purchasing party free and clear of all liens, claims and encumbrances excepting only those for which provision is expressly made in this Agreemat, and said Tnbmsl shall be tmnsfmd on the books and records of the Company to the pureha!Seror purchasers. Upon the closing of the sale and purchase, the selling and purchasing parties shall execute and deliver to each other the various documents which shall be required to carry out their undertakings hereunder including the payment of cash, the execution and delivery of Notes and Swmily Agreements and the assignment of the Interest. 9. GENERAL. a. Notices/Aum-ovals to Be in Writing. Any notice, rquest, approval, consent, demand or other communication required or permitted hereunder shall be given in writing by (1) personal delivery, or (2) national overnight delivery service (e.g. Pederal Express) with proof of delivery, or (3) United States Mail, postage prepaid, registered or certified mail, return rt?ceipt requested, or (4) prepaid telegram or facsimile or telex (provided that such teleg-ram, facsimile or telex is confirmed by national cwemight delivery service or by mail in the manner previously described), sent to the party to whom the communication is directed at the address above, or to such different address as the addressee shall have designated by written notice sent in accor&mc;t: herewith, and shall he deemed to have been given and received either at the time of personal delivery or, in the case of delivery service or mail, as of the date of first attempted delivery at the address and in the manner provided herein, or in the case of telegram or telex, upon receipt. (1) This Agreement may be amended by written agreement of amendment executed by all the Members, but not olherwisc. Except as herein otherwise specifically provided, this Agreement shall be binding upon and inure to the bwwfil of the parties and their legal representatives, successors and assigns. Captions contained in this Agreement in no way define, limit or extend the scope or intent of this Agreement. Jf any provision of this Agreement, or the application of any such provision to any person or circumstance shall be held to be illegal, invalid or unenforceable under present or future laws effective during the term hereof, the remainder of this Agreement, or the application of such provision to any other persons or oircumsknccs, shall oot be afkzted thereby and shall be construed and enrorced as if such illegal, invalid or unenforceable provision had never comprised a part hereof. (2) If the Company or any party obtains a judgment against any other party by mason of breach of this Agreement or failure to comply with the provisions hereof, a reasonable attorneys’ fee as fixed by the court shall be included in such judgment. No Sent By: $CIACCA DEVELOPMENT; __ 619 756 5145; Mar-s-00 10:54; Page 12112 waiver by a M.anaging Member, a Member or the Company of any breach of this Agreement shall be deemed to be a waiver of any other breach of any kind or nature and no acceptance of payment or performance by a Managing Member, a Member or the Company after any such breach shall be deemed to be a waiver of any breach of this Agreement whether or not such Member or the Company knows of such breach at the time it accepts such payment or performance. IN WITNESS WHEREOF, the parties hereto have executed this Operating Agreement of DSK Carlsbad Partners, LLC as of the day and year first above written. MEMBERS: 11 e.. LAWYERS TITLE COMPANY 4542 Ruffner Street, Suite 200, San Diego, CA 92111 Telephone (858) 278-4171 PRELIMINARY REPORT Frank J. Sciacca 3838 Camino De1 Rio North #300 San Diego, Ca 92108 Attention: Escrow Officer: Telephone: 619-280-6400 Fax: Your No. : DSK Carlsbad Ptrs Property Address: Our No.: 275282-05 Title Officer: Marie L. Crossland, X#405 Title Unit's FAX (858) 278-0446 IN RESPONSE TO THE ABOVE REFERENCED APPLICATION FOR A POLICY OF TITLE INSURANCE, LAWYERS TITLE COMPANY, a California Corporation, hereby reports that it is prepared to issue, or cause to be issued, as of the date hereof, a Lawyers Title Insurance Corporation Policy or Policies of Title Insurance describing the land and the estate or interest therein hereinafter set forth, insuring against loss which may be sustained by reason of any defect, lien, or encumbrance not shown or referred to as an Exception in Schedule B or not excluded from coverage pursuant to the printed Schedules, Conditions and Stip- ulations of said policy forms. The printed Exceptions and Exclusions from the coverage of said Policy or Policies are set forth in the attached Exhibit 1. Copies of the Policy forms should be read. They are available from the office which issued this report. Please read the exceptions shown or referred to in Schedule B of this report and the exceptions and exclusions set forth in the cover sheet attached to this report carefully. The exceptions and exclusions are meant to provide you with notice of matters which are not covered under the terms of the title insurance policy and should be carefully considered. It is important to note that this preliminary report is not a written representation as to the conditions of title and may not list all liens, defects, and encumbrances affecting title to the land. THIS REPORT, (AND ANY SUPPLEMENTS OR AMENDMENTS HERETO) IS ISSUED SOLELY FOR THE PURPOSE OF FACILITATING THE ISSUANCE OF A POLICY OF TITLE INSURANCE AND NO LIABILITY IS ASSUMED HEREBY. IF IT IS DESIRED THAT LIABILITY BE ASSUMED PRIOR TO THE ISSUANCE OF A POLICY OF TITLE INSURANCE, A BINDER OR COMMITMENT SHOULD BE REQUESTED. CLTA Preliminary Report (Rev. l-l-95) ORDER NO.: 275282-05 SCHEDULE A Date of Report: 07/30/00 at 7:30 A.M. The form of policy of title insurance contemplated by this report is: 1. The estate or interest in the land hereinafter described or referred to covered by this report is: a fee 2. Title to said estate or interest at the date hereof is vested in: DSK Carlsbad Partners, a California Limited Liability Company 3. The land referred to in this report is situated in the State of California, County of San Diego , and is described on the attached Exhibit A. ORDER NO.: 275282-05 EXHIBIT A (LEGAL DESCRIPTION) Lot 12 of Carlsbad Tract No. 81-10, in the City of Carlsbad, County of San Diego, State of California, according to Map thereof No. 10330, filed in the Office of the County Recorder of San Diego County, February 18, 1982. END OF SCHEDULE A ORDER NO.: 275282-05 AT THE DATE HEREOF EXCEPTIONS TO COVERAGE IN ADDITION TO THE PRINTED EXCEPTIONS AND EXCLUSIONS IN THE POLICY FORM DESIGNATED ON THE FACE PAGE OF THIS REPORT WOULD BE AS FOLLOWS: 1. Property taxes, including general and special taxes, personal property taxes, if any, and any assessments collected with taxes, to be levied for the fiscal year 2000-2001 which are a lien not yet payable. 2. Supplemental or escaped assessments of property taxes, if any, assessed pursuant to the Revenue and Taxation Code of the State of California. 3. The lien of a "Special Tax" pursuant to Government Code, Section 53328.3 and Streets and Highways Code Section 3114.5 or other Community Facilities Assessments, as provided by Municipal Code which is collected with the County (and City) General and Special Taxes. 4. An agreement to which reference is hereby made for full particulars Dated: July 17, 1980 By and between: The Knoll Company and The City of Carlsbad Regarding: the payment of a public facilities fee Recorded: July 23, 1980 as File/Page No. 80-230925 of Official Records 5. Covenants, conditions and restrictions as set forth in the document Recorded: May 12, 1982 as File/Page No. 82-141190 of Official Records. NOTE: This exception omits any covenant, condition or restriction based on race, color, religion, sex, handicap, familial status or national origin, unless and only to the extent that the covenant, condition or restriction (a) is not in violation of state or federal law (b) is exempt under 42 U.S.C. Section 3607 or (c) relates to a handicap but does not discriminate against handicapped people. Modification(s) of said covenants, conditions and restrictions Recorded: December 10, 1987 as File/Page No. 87-682096'of Official Records Modification(s) of said covenants, conditions and restrictions Recorded: January 19, 1988 as File/Page No. 88-024160 of Official Records Modification(s) of said covenants, conditions and restrictions Recorded: June 29, 1988 as File/Page No. 88-313420 of Official Records 6. An easement for the purposes shown below and rights incidental thereto as shown or as offered for dedication on the recorded map shown below. Map No.: 10330 Purpose: a 15 foot sewer easement Affects: as shown on said map ORDER NO.: 275282-05 SCHEDULE B (continued) 7. The fact that the ownership of said land does not include rights of access to or from the street or highway abutting said land known as El Camino Real, such rights having been relinquished by the map of said Tract. Affects: as shown on said map 8. An easement for the purposes shown below and rights incidental thereto as shown or as offered for dedication on the recorded map shown below. Map No.: 10330 Purpose: future street Affects: as shown on said map Said offer of dedication was rejected by the legislative body, but shall remain open for later acceptance pursuant to Section 66477.2 of the California Government Code, unless said offer is abandoned by the legislative body pursuant to the summary vacation procedure contained in the California Streets and Highways Code. 9. A Deed of Trust to secure an indebtedness in the amount shown below, and any other obligations secured thereby Amount: $2,291,250.00 Dated: December 21, 1998 Trustor: DSK Carlsbad Partners, a California Limited Liability Company Trustee: Scripps Bank, a California State Banking Corporation Beneficiary: Scripps Bank Recorded: December 28, 1998 as File/Page No. 1998-0849946 of Official Records An agreement to modify the terms and provisions of said deed of trust as therein provided Executed by: DSK Carlsbad Partners, a California Limited Liability Company and Scripps Bank Recorded: January 20, 2000 as File/Page No. 2000-0029220 of Official Records 10. An agreement to which reference is hereby made for full particulars Dated: December 21, 1998 By and between: DSK Carlsbad Partners, a California Limited Liability Company and Scripps Bank Regarding: hazardous substances certificate and indemnity Recorded: December 28, 1998 as File/Page No. 1998-0849947 of Official Records ORDER NO.: 275282-05 SCHEDULE B (continued) END OF SCHEDULE B EXCBPTIONS IMPORTANT INFORMATION PLEASE REFER TO THE "NOTES AND REQUIREMENTS SECTION" WHICH FOLLOWS FOR INFORMATION NECESSARY TO COMPLETE THIS TRANSACTION. Note No. 1: The company will require satisfactory evidence of the authority of the artificial/statutory entity(ies) to complete the contemplated transaction. Note No. 2: It will be the requirement of the local agency, in order to file map named herein, that arrangements be made for bonding/payment of taxes and assessments on said land for fiscal year 2000-2001. Note No. 3: The requirement that the, company be provided with two (2) prints of the final map named herein approved by the local agency, in order that the company may issue its guarantee for said tract when called for by the City/County, Map No. (not shown). Note No. 4: Property taxes for are: Fiscal year: 1st Installment: Penalty: 2nd Installment: Penalty: Exemption: Land: Improvements: Personal Property: Code Area: Assessor's No: the fiscal year shown below. For proration purposes the amounts 1999-2000 $22,371.32 paid $none $22,371.32 paid $none Snone $3,525,000.00 $none $none 09013 212-062-04-000 ORDER NO.: 275282-05 SCHEDULE B (continued) NOTE : Please be advised that the Company will require that the beneficiary or beneficiaries sign an estimated closing cost statement (HUD-l) any time the Company is presented for payoff a net proceeds demand or a demand in which the beneficiary or beneficiaries are accepting for payoff less than the total amount owed. NOTICE 1. EFFECTIVE JANUARY 1, 1990, ASSEMBLY BILL 512, ENACTED AS CHAPTER 598, WILL ADD SECTION 12413.1 TO THE CALIFORNIA INSURANCE CODE DEALING WITH THE "GOOD FUNDS" ISSUE. FUNDS DEPOSITED BY: 2. CASHIER'S CHECKS, CERTIFIED CHECKS, AND TELLER'S CHECKS WILL BE AVAILABLE FOR NEXT DAY DISBURSEMENT BY DRAFT OR CHECK. 3. ELECTRONIC TRANSFER ("WIRED FUNDS") WILL BE AVAILABLE FOR SAME DAY DISBURSEMENT. 4. ALL OTHER TYPES OF CHECKS WILL NOT BE AVAILABLE FOR DISBURSEMENT UNTIL THE DAY PROVIDED IN REGULATION CC ADOPTED BY THE FEDERAL RESERVE BOARD OF GOVERNORS. 5. SHOULD YOU HAVE ANY QUESTIONS IN THIS REGARD, PLEASE CONTACT YOUR TITLE OFFICER IMMEDIATELY. FOR YOUR INFORMATION, EFFECTIVE MONDAY, APRIL 4, 1994, OUR WIRING INSTRUCTIONS WILL BE AS FOLLOWS: UNION BANK 530 "B" STREET SAN DIEGO, CA 92101 ABA #122000496 ACCOUNT #9120000257 CREDIT: LAWYERS TITLE TRUST ACCOUNT REF: ORDER NO. TITLE OFFICER - ORDER NO.: 275282-05 SCHEDULE B (continued) DISTRIBUTION: cc: O'Day Consultants 5900 Pasteur Court, #100 Carlsbad, CA attn: Meg Carroll END OF SCHEDULE B _ .--.-- p--‘c. .- .- T 8 -__- I i mAO--6/YPB) CALIFORNIA LAND TITLE ASSdClATlON STANDARD COVERAGE POLICY - 1990 EXCLUSIONS FROM COVERAGE Tl-122 followifii matters are expressly excluded frf - he coverage of this policy and the Company w-t pay loss or damage, costs, attorneys’ fees or expenses which arise by reason of: 1. (a) Any law, ordinance or governmental regulation (including but not limited to building or zoning laws. ordinances, or regulations) restricttng, r.egulating, prohibiting or relating to (t) the occupancy, use or enjoyment of the land; (it) the character, dimensions or location of any improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part; or (IT) environmental protection, or the effect of any vidation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy (b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of pbfty, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowtedge. 3. Defects, liens, encumbrances, adverse claims or other matters: (a) whether or not recorded in the public records at Date of Policy. but created, suffered, assumed or agreed to by the insured claimant; (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured ctolmant prior to the date the insured claimant became an insured under this policy; (c) resulting in r-ta loss or damage to the insured clalmant: (d) attaching or created subsequent to Date of Policy: or (e) resutltng in loss or damage which would not have been sustained tf the insured claimant had paid value for the insured mortgage or for the estate or interest insured by thtt policy 4. UnenforceatMty of the lien of the insured mortgage because of the inability or failure of the insured at Date of Wkq, or the inability or failure of any subsequent owner of the hdebtedness, to comply with the applicable doing business laws of the state in which the land is situated. 5. Invalidity or unenfarceabilit of the lien of the Insured mortgage, or claim thereof, which arises out of the transaction evidenced by the insured mart gage and is based upon usury or any consumer credit protection or truth in lending law. 6. Any claim. which arises out of the transactton vesting in the insured the estate or interest insured by this polls or the transactton creattng the interest of the insured tender, by reason of the operation of federal bankruptcy state insotvency or similar creditors’ rights laws. EXCEPTtONS FROM COVERAGE - SCHEDULE B, PART I This policy does not insure against loss or damage (and the Company will not pay costs, attorneys’ fees or expenses) which arise by reason of: 1. Taxesor ossessmmts which are not shown as existing liens by the 3. Easements, liens or encumbrances, or claims thereof, which are not records of any taxing authority that levies taxes 0T assessments on real shown by the public records. property or by the public records. 4. Discrepancies. conflicts in boundary lines, shortage in area, Proceedings by a public agency which may result in taxes ar assess- encroachments. or any other facts which a correct survey would dt me&, or notices of such proceed@% whether OT not shown by the close, and which are not shown by the public records. records of such agency or by the public records. 5. (a) Unpatented mining claims; (b) reservattons or exceptions in 2. Any facts, rights, interests or claims which are not shown by the pub patents or in Acts authorlzing the issuance thereof; (c) water rights, claims lit records but could be ascertained by an inspection of the land which or title to water, whether or not the matters excepted under (a),(b) or (c) may be assfxted by persons in possession thereof. are shown by the public records. AMERICAN TITLE ASSOClATlON OWNER’S POLICY (lo- 17-5’2) AND AMERICAN LANDTm.E ASSOCIATION LEASEHOLD OWNER’S POUCY (W-17-92) EXCLUSIONS FROM COVERAGE The following matters are expressly excluded Porn the coverage of this pottcy and the Company will not pay loss or damage, costs, attorneys’ fees or expenses which arise by reoson of: 1. (a) Any ~YW, ordinance o( governmental regulation (including but not limited to building and zoning laws. ordinances, or regulations) restricting, regulating, prohibiting 01 retatlng to (i) the occupancy, use. or enjoyment of the land; (ii) the character, dlmenstons or location of any improvement now or hereafter erected on the land; (tt) a separatton in awnershtp or a change in the dimensions or area of the tand or any parcel of whtch the land is or was a part; or (it) environmental protection, or the etfect of any vtoMton of these laws, ordinances or governmental regulattons, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation atfecttng the land has been recorded in the public records at Date of Policy (b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect, lien or encumbrance resuktng from a violmn or alleged vkotatlon affecting the bnd has been recorded in the public records at Date of pdicy. 2. Rtghts of eminent domaln unless notice of the exercise thereof has been recorded in the public records at Date of Follcy, but not excluding from coverage any taking which has occurred prk~ to Date of FMcy which would be binding on the rtgnts of a purchaser for value without knowledge. 3. Defects, tlens, encumbrances, adverse claims ar other matters: (a) created,suffered, assumed cr agreed to by the insured claimant; (b) not known to the Company, not recorded in the public records at Date of pblicy, but known to the insured claimant and not disclosed in writing to the Company by the insured clalmont @or to the date the insured claimant became an insured under this policy; (c) resulting in no loss or damage to the insured claimant; (d) attachtng or created subsequent to Date of pblicy: or (e) resutttng In lass or damage which would not have been sustained if the insured ctaimant had paid value for the estate or interest Insured by this pdicy. 4. Any claim, which arises out of the transaction vesting in the insured the estate or interest insured by this policy, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors rights laws that ls based on: (l) the transactton creating the estate or interest insured by this policy being deemed a fraudulent conveyance or fraudulent transfer: or (ii) the transactton creating the estate or interest insured by this policy being deemed a preferential transfer except where the preferential transfer resutts from the failure: (a) to ttmety record the instrument of transfer; or (b) of such reccrdation to import notice to a purchaser for value or a judgment of Yen creditor. AMERKXNlANDllTLEASSOCIAlKM RESIDENTIAL TITLE INSURANCE POLICY (6-l-87) EXCLUSIONS In oddttion to the Exceptions in Schedule B, you are not Insured agatnst toss, costs, attorneys’ fees, and expenses resuittng from: 1. Governmental police power, and the existence or vioiatton of any law or government regulation. This includes building and zoning ordinances and also laws and regulations concerning: - land use - tand division - knprovements on the land - em&onmental protection Thii excluston does not apph/ to viota%ns cr the enforcement of these matters which appear in the pubilc records at Policy Date. This exclusion does not limit the zoning coverage described in items 12 and 13 of Covered Title Risks. 2. The riQht to take the land by condemning it, unless: a a notice of exercising the rlght appeosin the public records on the Policy Date * * the taking happened prior to the PO! Iate and is binding on you if you bought the lane iout knowing of the taklng 3. TllRisks: - that exe created, allowed, cr agreed to by you l that QTe known to you, but not to us, on the Fori Date - unless they appeared on the public records l thcftresuttlnnolosstoyou i r 0 that first affect your title after the pdiq Date - this does not limit the labor and material lien coverage in item 8 of Covered Me Risks 4. Fai!uretopayvaluefcryoutitle. 5. Lack of a right: a to any land outside the area speciflcaliy described and referred to in item 3 of Schedule A or . in streets, alleys, or waterways that touch your land lhii exclusion does not llmit the access coverage in item 5 of Covered Ttie Risks. CAUFORNlAIANDTIllEASSOClAllON HOMEOWMR’S POLICY OF ITiLE MURANCE (6-2-98) AMERICAN IANDTflLE ASSOClAIlON HOMEOWNER’S POLlC&~~3’SlJRANCE (1 O- 17-98) In addition to the Exceptions in Schedule B,You are not insured against loss, costs, attorneys’ fees, and expenses resulting from: 1. &vemmentd p&e p0wec.a-d the existence or viola-lion of any law or go+ernrnent re~rlaticnlh!! incMes ordbcfces, laws and regulations concerning: a. building b. zoning c. land used d. improvements on the land e. land division f. environmental protection This Exclusion does not apply to violations cr the enforcement of these matters if notice of the violation of enforcement appears in the Public Records at the pdlcy Date. This Exclusion does not limtt the caverage described in Covered Risk 14.15.16.17, or 24. 2. The failure of Your existing structures, or any part of them, to be constructed in accordance with applicable building codes. This Exclusion does not apply to violations of building codes if notice of the violation appears in the Public Records at the Policy Date. 3. The right to take the Land by condemning it. unless: a. a notice of exercising the right appears in the Public Records at the Wit Date; or b. the taking happened before the Policy Date and is bindinQ on You if You bought the Land without Knowing of the taking. 4. Risks: a. that are created, allowed, or agreed to by You, whether or not they appear in the Public Records; b. that are Known to You at the Policy Date, but not to Us, unless they appear in the Public Records at the Policy c. that result in no toss to You: or d. that llrst occur after the Policy Date - this does not limit the coverage descrii in Covered Risk 7,8d, 22,23,24 5. Failure to pay value for Your lltte. 6. Lack of a right: a. to any land outside the area specMcaliy described and referred to in paragraph 3 of Schedule A; and b. in streets, alleys, or waterways that touch the Land. This Exclusion does not limit the coverage described in Covered Risk 11 or 18. . AMEWCANLANDrmEASSOCIATIO~LOAN~Y(10-17-92)AND AMERICAN LAND llll.E ASSOCIATION LEASEHOLD LQAN FOUCY (lo- 17-92) EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this porn and the Company will not pay loss or damage, costs, attorneys’ fees or expenses which arise by reason of: 1, (a) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating to (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions 01 area of the land or any parcel of which the land is or was part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy (b) Any governmental polite power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value witt\out knowledge. 3. Defects, Ilens, encumbrances, adverse claims or other matters: (a) created, suffered. assumed or agreed to by the insured claimant; (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy; (c) resulting in no loss or damage to me insured claimant; (d) attaching or created subsequent to Date of Fblicy (except to the extent that this policy insures the priority of the lien of the insured mortgage over any statutory lien for services, labor or material or to the extent insurance is afforded herein as to assessments for street improvements under construction or completed at Date of Policy): or (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the insured mortgage. 4. UnenforceabiMyof the lien of the insured mortgage because of the inability or failure of the insured at Date of Policy, or the inability or failure of any subsequent owner of the indebtedness, to comply with applicable doing business laws of the state in which the land is situated. 5. Invalidity or unenforceability of the lien of the insured mortgage, or claim thereof, which arises out of the transaction evidenced by the insured mortgage and is based upon usury or any consumer credit protection or truth in IendinQ law. 6. Any statutory lien for services, labor or materials (or the claim of priori of any statutory lien for services, labor or materials over me lien of the insured mortgage) arising from an improvement or work related to the land which is contracted for and commenced subsequent to Date of Policy and is not financed in whole or in part by proceeds of the indebtedness secured by the insured mortgage which at Date of Policy the insured has advanced or is obligated to advance. 7. Any claim, which arises out of the transaction creating the interest of the mortgagee insured by this policy, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors’ rights laws, that is based on: (i) the transaction creating me interest of me insured mortgage being deemed a fraudulent conveyance or fraudulent transfer; or (ii) the subordination of the interest of the insured mortgagee as a result of the application of the doctrine of equitable subordination; or @i) me transaction creating the interest of the insured mortgage being deemed a preferential transfer except where the preferential transfer results from the failure: (a) to timely record the instrument of transfer; or (b) of such recordation to impart notice to a purchaser for value or a judgment or lien creditor