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HomeMy WebLinkAboutContract 1533-5 DOC # 2015-0566300 12/31/2015 03:14 PM Fees: $0.00 Recording Requested By Page 1 of 32 First American TIfleCompany Recorded in Official Records National Commercial County of Riverside Peter Aldana RECORDING REQUESTED BY: ) Assessor-County Clerk-Recorder ) **This document was electronically submitted THE CITY OF CATHEDRAL CITY ) to the County of Riverside for recording** Receipted by:TERESA#134 AND WHEN RECORDED RETURN TO: ) THE CITY OF CATHEDRAL CITY ) 68-700 Avenida Lalo Guerrero ) Cathedral City, CA 92234 ) Attn: Agency Secretary ) APN: ) /VC,S - 2 3 et r (Space Above for Recorder's Use) Exempt from Recording Fees per Government Code Section 27383 NON-EXCLUSIVE EASEMENT AGREEMENT WITH MAINTENANCE COVENANTS 1808950.13 21469-930 1 Recording Requested By First American Title Company National Commercial Services RECORDING REQUESTED BY: ) THE CITY OF CATHEDRAL CITY ) AND WHEN RECORDED RETURN TO: ) THE CITY OF CATHEDRAL CITY ) 68-700 Avenida Lalo Guerrero ) Cathedral City, CA 92234 ) Attn: Agency Secretary ) APN: ) AIGS — ?1 388 5- (Space Above for Recorder's Use) Exempt from Recording Fees per Government Code Section 27383 NON-EXCLUSIVE EASEMENT AGREEMENT WITH MAINTENANCE COVENANTS 1808950.13 21469-930 1 NON-EXCLUSIVE EASEMENT AGREEMENT WITH MAINTENANCE COVENANTS (M & M PROPERTY COMPANY) This Easement Agreement with Maintenance Covenants ("the Agreement") is entered into by and among the CITY OF CATHEDRAL CITY, a California municipal corporation (the "City"), the CITY OF CATHEDRAL CITY SOLELY IN ITS ROLE AS SUCCESSOR AGENCY TO THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF CATHEDRAL CITY, a separate legal entity existing under Health & Safety Code Section 34173 ("Successor Agency"), M & M PROPERTY COMPANY, LLC, a California limited liability company (the "Developer"), and CONNEAUT PARTNERS, LLC, a California limited liability company ("Conneaut"). Collectively said parties may be referred to herein as the "Parties," or individually as a "Party." This Agreement bears the date of N W-ayl o v (() , 2015 for purposes only of document recordation and identification (herein known as the "Record Date"). RECITALS WHEREAS, the Parties have cooperated in the creation of Parcel Map 36428 (the "Map"), recorded on July 1, 2013, in Parcel Map Book 235, at Pages 69 through 71, inclusive, in the Official Records of Riverside County, California (the "Official Records"), a copy of which recorded map is attached hereto as Exhibit "A", which created, realigned, resized, or otherwise affected previously existing land parcels, and provides said affected parcels with new legal descriptions; and WHEREAS, Conneaut, prior to the recording of the Map, was owner of that certain property legally described on Exhibit "B" attached hereto (the "Original Conneaut Land"), and shown on the recorded Map as Parcels 9, 10, and 11. Conneaut entered into that certain Lease dated February 15, 2004 (the "Conneaut Lease") with CCC Properties, LLC, a California limited liability company ("Original Tenant"). By way of assignment from Original Tenant, the former Redevelopment Agency of the City of Cathedral City was assigned all of Original Tenant's right, title and interest, and it assumed all of Original Tenant's obligations thereafter arising, under the Conneaut Lease for the Original Conneaut Land pursuant to the Assignment and Assumption of Lease dated March 7, 2007. As a result of the dissolution of the former Redevelopment Agency of the City of Cathedral City by action of California State Legislature on February 1, 2012, and the appointment of City of Cathedral City as Successor Agency to the former Redevelopment Agency, Successor Agency is the current "Tenant" under the Conneaut Lease; and WHEREAS, the former Redevelopment Agency of the City of Cathedral City entered into a Disposition and Development Agreement (the "DDA") with Developer, dated as of June 1808950.13 21469-930 2 22, 2011, a Memorandum of which was recorded as Document No. 2012-0300735 in the Official Records on June 28, 2012, which called for the transfer to Developer of certain land located in the area covered by the Map for the purposes of developing an automobile dealership (the "Automobile Dealership") and an access road located on Parcel 1 and Parcel 11 (the "Access Road"), which road would benefit not only Developer's land but other parcels as well (all as more particularly provided and described in the DDA, which is incorporated herein by reference); and WHEREAS, Successor Agency, in accordance with the terms of the DDA, has previously transferred certain land to Developer, by deed recorded on June 28, 2012, as Instrument No. 2012-0300738, in the Official Records, for use in constructing the Automobile Dealership and the Access Road, which land is depicted on the Map as: Parcel 1 (more or less the eastern and southern portions of the Access Road), Revised Parcel 2 (as defined in the Recital below ), Revised Parcel 5 (as defined in the Recital below) and Parcel 8. Parcel 11 (which is a portion of the Original Conneaut Land, which is sometimes referred to herein as the "Former Conneaut Land") is legally described in Exhibit "C", attached hereto) and is more or less the northwestern portion of the Access Road; and WHEREAS, subsequent to the recordation of the Map, Developer, Successor Agency and the City processed and recorded Lot Line Adjustment No. 2014-469 (the "Lot Line Adjustment"), attached hereto as Exhibit "D", which adjusted the boundaries between Parcel 2, which is the Automobile Dealership, and Parcel 5 of the Map. A portion of Parcel 5 was transferred by Successor Agency to Developer by deed recorded March 31, 2014, as Instrument No. 2014-0116836, in the Official Records, which enlarged Parcel 2, and gave it a new legal description, and decreased the size of Parcel 5, and gave it a new legal description. The enlarged Parcel 2 is described and shown in Exhibit "D" and is hereafter referred to as "Revised Parcel 2" and the remaining portion of Parcel 5 as shown and described in Exhibit "D" is hereafter referred to as "Revised Parcel 5"; and WHEREAS, in exchange for Parcel 11 to be transferred to Developer by Conneaut for inclusion as part of the Access Road as required by the DDA, Developer is, concurrently with the recording of this Agreement in the Official Records, transferring to Conneaut the land shown on the Map as Parcel 8. As a result, upon recording of the Property Transfer Agreement in the Official Records, Conneaut will own Parcel 8, Parcel 9 and Parcel 10 of the Map, herein referred to as the "Conneaut Property," and Developer will own Parcel 1, Parcel 11, Revised Parcel 2 and Revised Parcel 5; and WHEREAS, Successor Agency consents to the transfer of Parcel 11 by Conneaut to Developer, which will result in Parcel 11 no longer being a part of the Original Conneaut Land that is the subject of the Conneaut Lease with Successor Agency as current Tenant; and 1808950.13 21469-930 3 WHEREAS, in consideration of the decrease in the size of the land covered by the Conneaut Lease by the transfer of Parcel 11 to Developer and by the dedication of a portion of said land, Parcel "A", as shown on the Parcel Map, for highway purposes, Successor Agency and Conneaut acknowledge that Parcel 8, through its transfer to Conneaut by Developer, may be leased by Successor Agency from Conneaut pursuant an amendment to the Conneaut Lease or a separate lease, on terms and conditions mutually acceptable to Successor Agency and Conneaut; and WHEREAS, the Oversight Board of the Successor Agency (the "Oversight Board") and the California Department of Finance ("DOF"), as required under Health & Safety Code Sections 34177 and 34181, have approved of (i) the transactions described in the above Recitals, and (ii)this Agreement; and WHEREAS, the Parties desire to set forth certain terms for the access easement and the sharing of maintenance costs of the street, curbs, gutters and other related improvements that are part of the Access Road (the "Access Road Improvements"), which have been constructed by Developer prior to the Record Date . NOW,THEREFORE,THE PARTIES AGREE TO BE BOUND BY THE PROMISES, COVENANTS AND OBLIGATIONS CONTAINED IN THIS AGREEMENT, EACH OF THEM ACKNOWLEDGING THE SUFFICIENCY OF THE CONSIDERATION GIVEN TO IT. TERMS AND CONDITIONS Section 1. Incorporation of Recitals. Each of the Recitals set forth above is incorporated in this Agreement, and the Parties each acknowledge and agree the truth and accuracy thereof. Section 2. Identification of Parties and Parcels; Recording of Agreement. a. The ownership of the Parcels, as modified by the Lot Line Adjustment in Exhibit "D", prior to the transactions contemplated by this Agreement are listed below: (1) Successor Agency: Parcel 6 and Parcel 7; (2) Developer: Parcel 1, Revised Parcel 5, Revised Parcel 2 and Parcel 8; (3) Conneaut: Parcel 9, Parcel 10 and Parcel 11; and (4) Not a part of this Agreement: Parcel 3 and Parcel 4. 1808950.13 21469-930 4 b. The Parcels of the Map and lands to be owned by each of the Parties after completion of the transactions contemplated by this Agreement are listed below: (1) Successor Agency: Parcel 6 and Parcel 7; (2) Developer: Parcel 1, Revised Parcel 2, Revised Parcel 5 and Parcel 11; and (3) Conneaut: Parcel 8, Parcel 9, and Parcel 10. c. This Agreement shall be recorded in the Official Records. References herein to a Parcel number, if not expressly described as relating to a different parcel map, shall mean and refer to that Parcel number described on the Map. Section 3. Easement Agreement. a. In consideration of the transfer of Parcel 11 to Developer, and of the various promises, covenants and obligations of each of the other Parties contained in this Agreement, the sufficiency of which is expressly acknowledged, Developer hereby grants an irrevocable non-exclusive appurtenant easement (the "Grant of Easement")to the owners of Parcels 6, 7, 8, and 10 (collectively, the "Benefitted Parcels"), and to their heirs, personal representatives, successors and assigns, without time limit or other constraint, except as otherwise provided in this Agreement (the owners of the Benefitted Parcels, whomever they may be from time to time, are referred to herein as the "Benefitted Owners") on and over the Access Road for the purposes of ingress, egress and other access by all persons to and from the Benefitted Parcels. It is expressly intended that, consistent with City regulations, each Party may have access to the Access Road along the entire frontage of their Parcel to the extent that it fronts the Access Road, inasmuch as the Parcels, other than Revised Parcel 2 and Revised Parcel 5, are not presently developed and it cannot be known with certainty where improvements on the Benefitted Parcels will ultimately be constructed. No access over the Access Road to a Benefitted Parcel shall unreasonably restrict access over the Access Road to another Benefitted Parcel, or to create unsafe or hazardous traffic patterns or conditions within the Access Road. Parcels 3 and 4 are not part of this Agreement, as described in section 2 above;thus, Parcels 3 and 4 are not Benefitted Parcels, and the owners and occupants thereof, are not "Benefitted Owners" and shall not be entitled to use the easements granted herein. b. In addition, if Conneaut or its successors or assigns, should ever take any action as part of any development, or permit any lessee of the Conneaut Property to take any action as part of any development, to combine Parcels 8, 9 and 10, or any part of them, either into one parcel or into one use, even if they remain separate parcels, such that access to what is now Parcel 9 becomes possible from the Access Road over and through what is now Parcel 8 or 1808950.13 21469-930 5 Parcel 10 (herein referred to as "Conneaut Use Change"), then the Grant of Easement by Developer in this section 3 shall extend to Parcel 9, and Parcel 9 shall thereafter be deemed to be a Benefitted Parcel, and its owner a Benefitted Owner. If there is no Conneaut Use Change, such that access to the Access Road from Parcel 9 is not possible, then the Grant of Easement shall not apply to Parcel 9. Additionally,the Grant of Easement shall not apply to an arrangement between two unrelated Benefitted Owners, one located on Parcel 9 and one located on Parcel 8 and/or Parcel 10, for access to the Access Road from Parcel 9. c. A Monument Sign ("Monument Sign") may be located at the juncture of the Access Road and East Palm Canyon to indicate the names of businesses whose primary entrance is located on the Access Road. Prior to construction of the Monument Sign, the Parties for all of the Benefitted Parcels must first agree in writing to its construction and maintenance. The Monument Sign shall be constructed so as to allow one display area on each side thereof for each of the Benefitted Parcels plus one display area for Revised Parcel 2 and one display area for Revised Parcel 5 (assuming that each of said Parcels otherwise qualifies under the terms of this paragraph). The Monument Sign shall be located so as not to block view or access of a Benefitted Parcel (or Revised Parcel 2 or Revised Parcel 5)from East Palm Canyon, and shall be in conformity with all pertinent City sign regulations. Nothing contained herein shall prevent any Party from constructing business signs within their own Parcel, so long as those signs are in conformity with all pertinent City regulations. Section 4. Maintenance and Repair of the Access Road; Reimbursement. a. Developer shall, at its sole cost and expense (but subject to reimbursement to the extent expressly set forth in this Agreement), maintain and repair the Access Road Improvements (and make such replacements thereof as are reasonably required) in order to keep the Access Road and the Access Road Improvements in good condition and repair (collectively, the "Maintenance of the Access Road Improvements"). In recognition of the financial cost to be incurred by Developer for the Maintenance of the Access Road Improvements, the other Parties each agree to reimburse Developer according to the Cost Proration (as defined subsection 4.c below) for such Maintenance Costs (as defined in subsection 4.b below and set forth in Exhibit "E" attached hereto). b. The term "Maintenance Costs" as used herein shall mean the following costs to the extent incurred with respect to the Access Road and Access Road Improvements only: (i) real property taxes; (ii) insurance of reasonable scope and terms protecting Developer and each of the Benefitted Owners from any claim arising from the use, operation or Maintenance of the Access Road; (iii) street sweeping and cleaning, debris removal, periodic resealing of the surface of the Access Road Improvements as is necessary; (iv) maintenance and repair (which includes necessary replacements) of the Access Road Improvements or any part thereof as may become 1808950.13 21469-930 6 necessary or appropriate; (v) maintaining, watering, replacing, trimming, fertilizing and otherwise taking care of landscaping within the Access Road in a first class manner, replacement of landscaping within the Access Road as necessary, and gardening services; (vi) utility costs pertaining to the Access Road Improvements, including lighting of the Access Road Improvements, directional signs, and the monument sign; (vii) the cost of complying with the requirements or standards of any governmental entity having any jurisdiction over any portion of the Access Road or Access Road Improvements, over the manner of its maintenance or operation or over the manner of access from public streets to the Access Road Improvements; and (ix) any costs not so listed which are necessary or reasonable to incur in order to maintain, repair, replace and operate the Access Road Improvements including, but not limited to, the cost of hiring a property management company to handle the Maintenance of the Access Road. c. The proration of the total of the Costs of Maintenance among the Parties, including Developer, (the "Cost Proration") is attached hereto as Exhibit "E" to this Agreement and is based upon the ratio which the total square footage of land area of each Benefitted Parcel bears to the total square footage of land area of all of the Benefitted Parcels, Revised Parcel 2 and Revised Parcel 5. If, for any reason, any of the Benefitted Parcels is increased in size or reduced in size by virtue of a transfer of a portion of one Benefitted Parcel to another Benefitted Parcel, the Cost Prorations of the affected Benefitted Parcels shall be recalculated accordingly, including the Maintenance Cost Prorations of the Benefitted Owners of the affected Benefitted Parcels. d. Developer shall prepare an annual report which: (i) identifies the Maintenance Costs; (ii) sets forth each Party's Cost Proration (based on the percentages as noted in Exhibit "E") thereof; and (iii) is accompanied by reasonable supporting documentation of all of the Maintenance Costs (collectively, the "Annual Maintenance Report"). The Maintenance Costs shall not include any costs associated solely with Revised Parcel 2 and/or Revised Parcel 5 or any other Parcel that is not the Access Road. The Annual Maintenance Report shall be distributed, in a manner compatible with the notice provisions of this Agreement, by Developer to the other Parties, or their heirs, personal representatives, successors or assigns as soon as reasonably practicable (and in any event within ninety (90) days) following the end of the calendar year in which such Maintenance Costs were incurred. e. Once the final amount of the Maintenance Costs and each Party's Cost Proration is determined, each Party shall pay its Cost Proration of the Maintenance Costs, and in any event not later than thirty (30) days of the date the final amount is determined. A failure to do so within the required period shall be deemed a potential breach of the covenant regarding such owner's obligation to pay for such Maintenance Costs, which failure may become an actual breach after Developer provides notice of default in compliance with the notice section 1808950.13 21469-930 7 of this Agreement and the owner of the Benefitted Parcel fails to make payment within the time indicated in the notice, which time period shall not be less than ten (10) days following such owner's receipt of such notice. A breach of this covenant shall not terminate or serve as the basis for a termination of the Grant of Easement, but may be enforced by Developer or any other Party by bringing an action in law or equity to recover the subject sums. If Developer elects to proceed in a legal action, the provisions of subsections 5.c and 8.o hereof shall apply. Developer may then enforce the judgment in any manner permitted under California law. f. Notwithstanding any other provision of this Agreement, no Party shall be responsible for payment of any Maintenance Costs with respect to a Benefitted Parcel it owns unless and until it (or its heirs, personal representatives, successors, assigns or lessee hereafter) obtains a building permit for a building and other improvements on such Benefitted Parcel. In the event that a building permit for a building and other improvements upon a Benefitted Parcel is issued to a Party (or its heirs, personal representatives, successors, assigns) or at any time other than the commencement of the calendar year during which current Maintenance Costs are calculated, said Party's Cost Proration for Maintenance Costs for that Benefitted Parcel shall be prorated for said year. g. In the event that at any time in the future the Conneaut Use Change occurs, Developer, or its successors, assigns or lessees, shall re-compute the Cost Proration for Maintenance Costs (but only to be effective once a building permit is issued with respect to improvements on Parcel 9) to include the total square footage of land area of Parcel 9 in the determination of the Cost Proration, which will result in a smaller share of the Cost Proration for each of the other Parcels, and a larger share of the Cost Proration being allocated to the owner of the Conneaut Parcels (if the owner thereof then continues to own all of the Conneaut Parcels). Should that occur, the then owner of Parcel 9 shall pay its Cost Proration of Maintenance Costs as and when otherwise required under this Agreement (and if Conneaut then owns any other Parcels, it may reduce its payment of the Cost Proration of the Maintenance Costs for Parcel 9 by the amount it would otherwise be reimbursed as described in the next sentence). Upon receipt of the Cost Proration for Maintenance Costs for Parcel 9, Developer shall re-compute the Cost Proration of Maintenance Costs for each of the other Parcels, including Revised Parcel 2 and Revised Parcel 5, and shall reimburse the then owners of the other Parcels for any amounts those owners overpaid, based on the earlier Cost Proration of Maintenance Costs, as compared with the recomputed Cost Proration for Maintenance Costs because of the Conneaut Use Change. h. In the event that, after the initial completion of the Access Road Improvements, the development of a Benefitted Parcel requires a physical disruption of the Access Road Improvements for the underground installation of any utility or other service to the Benefitted 1808950.13 21469-930 8 Parcel, or causes undue wear and tear on the Access Road Improvements due to the travel upon the Access Road Improvements of construction equipment, or requires that the Access Road Improvements receive more than ordinary maintenance, repairs, replacements or cleaning due to construction activities on or with respect to the Benefitted Parcel, the costs of correcting such damage, wear and tear, or maintenance, repair, replacement or cleaning need ("Repair Costs") shall be the sole responsibility of the owner of said Benefitted Parcel. Developer may require such work, or any part thereof, to be undertaken by the owner of the Benefitted Parcel, or may undertake the work itself and charge the reasonable Repair Costs thereof to the owner of the Benefitted Parcel, in which case Developer will provide the owner of the Benefitted Parcel, as soon after the work of correction has been performed as is practical, with an invoice containing a detailed explanation of the reasonable Repair Costs incurred by Developer, it being understood that further invoices may be sent as other works of correction become necessary. i. The owner of the subject Benefitted Parcel under subsection 4.g above shall pay each invoice for reasonable Repair Costs within sixty (60) days of receiving it. A failure to do so within the required period shall be deemed a potential breach of the covenant regarding such owner's obligation to pay for such Repair Costs, which failure may become an actual breach after Developer provides notice of default in compliance with the notice section of this Agreement and the owner of the Benefitted Parcel fails to make payment within the time indicated in the notice, which time period shall not be less than ten (10) days following such owner's receipt of such notice. A breach of this covenant shall not terminate or serve as the basis for a termination of the Grant of Easement, but may be enforced by Developer or any other Party by bringing an action in law or equity to recover the subject sums. If Developer elects to proceed in a legal action, the provisions of subsections 5.c and 8.o hereof shall apply. Developer may then enforce the judgment in any manner permitted under California law. j. If the owner of a Benefitted Parcel refuses to pay its Cost Proration of Maintenance Costs or the amount of the Repair Costs, and such refusal continues a breach of the covenant contained in subsection 4.h above, Developer shall have the right to re-calculate the applicable Cost Proration of the Maintenance Costs, including by adding thereto the unpaid Repair Costs, among the non-defaulting Parties, and to reassess each of said non-defaulting Parties for its Cost Proration of such expenses (including an allocation thereof to Developer) in accordance with the allocation procedures outlined above. At such time as Developer recovers any portion of the delinquent Maintenance Costs or the Repair Costs, and after deducting Developer's reasonable attorneys' fees and legal costs to the extent not recovered by Developer from the breaching owner (which recovery of such reasonable attorneys' fees and legal fees shall have priority over reimbursement to the other Parties of the other amounts recovered), Developer shall allocate among the non-defaulting Parties their respective shares of 1808950.13 21469-930 9 the recovered amounts. The intent of this section is to enable Developer to take action to enforce and recover any Maintenance Costs and/or Repair Costs payable by a Party, to share the financial burden of the delinquent amounts among all of the non-defaulting Parties as their interests appear, to first repay Developer for advancing the costs of recovering any delinquent amounts, and then to reimburse the non-defaulting Parties for the share of the unpaid Maintenance or Repair Costs which each non-defaulting Party paid. Section 5. Arbitration Provisions. a. At any time that a Party is entitled to and elects to proceed to binding arbitration in accordance with the terms of this Agreement, said Party shall serve a sixty (60) day notice, given in compliance with the notice provisions of this Agreement, on each of the other Parties. If an agreement on the disputed issue or issues has not been reached prior to the end of said notice period, the aggrieved Party may proceed to arbitration as provided hereinafter. As noted, any Party which has not served a timely and compliant notice contesting the relevant documents, facts, totals or conclusions, may elect not to participate in the arbitration proceeding. The Parties agree that any binding determination in arbitration shall apply to all of the Parties, whether or not a Party elected not to participate. b. The aggrieved Party shall follow the rules of the American Arbitration Association regarding binding arbitration, and each of the Parties agrees to follow the same rules, to be bound by the eventual decision, and that said decision may be entered as a judgment in the Superior Court of Riverside County. c. The "Costs" of each Party participating in the arbitration shall be awarded to each Party deemed to be a prevailing party in said arbitration. The term "Costs" as used in this subsection includes necessary and reasonable attorneys' fees, the fees paid or payable to the American Arbitration Association, and any other reasonable and necessary costs which the prevailing Party incurred in preparing and presenting its case to the arbitrator and enforcing the judgment or award given in the arbitration. Section 6. Notice Provisions. a. Any notice permitted or required to be given under the provisions of this Agreement shall be in writing and served on all of the Parties to the individuals and/or organizations specified below, at the address specified, or to such other individual and/or organization or address as may be specified from time to time by any Party in a notice given in accordance with this section. 1808950.13 21469-930 10 b. Notices may be given in the following manner: by personal delivery; by registered or certified mail, return receipt requested; by a reputable overnight courier service (such as FedEx); or by e-mail and regular mail. c. Notices shall be deemed to be effective: with respect to personal delivery or delivery by reputable overnight courier, on the date of said delivery; with respect to registered or certified mail, on the date indicated on the return receipt or registration form that the notice acknowledges receipt, or if the notice was refused then the date of refusal shown on the form; and with respect to e-mail and regular mail, on the third day after the regular mail is deposited in the U.S. mail, postage prepaid and properly addressed to the Party or Parties. d. Notices shall be provided to the Parties as follows, unless a Party has provided alternative notice information, given to the other Parties in a written notice given in accordance with this section: Developer: M & M Property Company, LLC 2740 BROADWAY Oakland, CA 94612 Attn: Michael Murphy With a copy to: Belzer, Hulchiy& Murray 3650 Mt. Diablo Blvd., Ste. 130 Lafayette, CA 94549 Attn: Robert A. Belzer The City and City of Cathedral City Successor Agency: 68-700 Avenida Lalo Guerrero Cathedral City, CA 92234 Attn: Charles P. McClendon With a copy to: Green de Bortnowsky, LLP 23801 Calabasas Rd., Ste. 1015 Calabasas, CA 91302 Attn: Charles R. Green Conneaut: Conneaut Partners, LLC 39 Shetland Court P.O. Box 244 San Ramon, CA 94583 1808950.13 21469-930 11 Attn: Thomas Hollister With a copy to: Freeman, Freeman &Smiley LLP 1888 Century Park East, Suite 1900 Los Angeles, CA 90067 Attn: Glenn T. Sherman Section 7. Indemnification Provisions. a. Developer hereby agrees to indemnify, defend and hold each of the other Parties harmless against any and all liabilities, costs, expenses, losses, damages, suits, claims, legal proceedings or extra-judicial proceedings (including, without limitation, mediation and/or arbitration) (collectively, the "Claims") arising out of Developer's construction, maintenance and/or repair of the Access Road Improvements, and any actions taken or failure to act by Developer in furtherance thereof. b. Each of the Parties hereto, including Developer, hereby agrees to indemnify, defend and hold each of the other Parties harmless against any Claims arising out of any negligence or willful misconduct by the indemnifying Party which arises in connection to the indemnifying Party's use of the Access Road and Access Road Improvements. This indemnification includes Claims arising out of the negligence or willful misconduct of any third party vendor, service provider or agent working on behalf of or utilizing the Access Road or Access Road Improvements solely for the benefit of the indemnifying Party. Section 8. General Provisions. a. All exhibits attached to this Agreement are deemed to be incorporated into this Agreement by reference. b. The Parties agree to execute any additional documents, forms, notices, applications or other documents reasonably necessary to carry out the intent of this Agreement. c. The Parties agree that, should any provision, section, paragraph, sentence or word of this Agreement be rendered or declared invalid by any final arbitration award or final judgment in any court action in a court of competent jurisdiction, or by reason of legislation, the remaining provisions, sections, paragraphs, sentences and words of this Agreement shall remain in full force and effect, and the Parties agree in good faith to immediately amend this Agreement in such a way as to provide valid alternative provisions, sections, paragraphs, sentences or words as to carry out the intent of this Agreement. 1808950.13 21469-930 12 d. Developer shall pay prior to delinquency all real property taxes and assessments assessed and levied on or against the Access Road and Access Road Improvements. The covenants, promises and obligations contained in this Agreement constitute equitable servitudes and shall run with the land of each Parcel which is the subject of the Grant of Easement, shall inure to the benefit of each of the Parties and their respective heirs, personal representatives, successors and assigns, and shall be binding on the Parties and each of their respective heirs, personal representatives, successors, assigns and lessees. e. With respect to any default by a Party occurring after the Effective Date (as defined in subsection 8.0 below), a non-breaching Party may institute legal action to cure, correct or remedy any default, providing that notice and an opportunity to cure have been given in compliance with the terms of this Agreement, and further provided that such action is not otherwise required to be handled in binding arbitration or prohibited or restricted by the provisions of this Agreement,to recover any damages arising from such breach or to obtain any other remedy, legal or equitable, consistent with the purposes of this Agreement. Such legal actions must be instituted in the Superior Court of the County of Riverside, State of California, in any other appropriate court in that County, or in the Federal District Court in the Central District of California. f. The laws of the State of California shall govern the interpretation and enforcement of this Agreement. g. Except with respect to any rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the Parties are cumulative and the exercise by any Party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by either the same defaulting Party or any other Party. A waiver of a requirement by a Party shall not constitute an ongoing waiver of that requirement in the future. h. No elected official, officer, employee or agent of the City having any conflict of interest, direct or indirect, related to this Agreement shall participate in any decision relating to this Agreement. i. Each of the Parties warrants that it has not paid or given, and will not pay or give, any third party any money or other consideration for obtaining this Agreement. Third parties, for the purposes of this section, shall not include persons to whom fees are paid for professional services if rendered by attorneys, financial or other consultants, accountants, engineers, architects and the like when such fees are considered necessary by the Party. For the purposes of this paragraph, third parties shall include any elected official, officer, employee or agent of the City. 1808950.13 21469-930 13 j. No elected official, officer, employee, agent or attorney of the City, the Successor Agency or the Oversight Board shall be personally liable to any Party, its shareholders or principals, or any successor in interest, or any other party or person whatsoever, in the event of any default or breach by the City or the Successor Agency, or for any amount which may become due to a Party or to its successors, or on any obligations under the terms of this Agreement, except for gross negligence or willful acts of such elected official, officer, employee, agent or attorney. k. In addition to specific provisions of this Agreement, performance by any Party hereunder shall not be deemed to be in default where delays or defaults are due to war; insurrection; strikes; lockouts; riots; floods; earthquakes; fires; casualties; acts of God; acts of public enemy; epidemics; quarantine restrictions; freight embargoes or lack of transportation; weather-caused delays; inability to secure necessary labor, materials or tools; acts of any other Party other than as permitted or required by the terms of this Agreement; acts or failure to act of any public or governmental agency or entity other than as permitted or required by the terms of this Agreement (except that action or failure to act by the City shall not extend the time for the City to act unless such extension is otherwise expressly authorized hereunder) unless such action or failure to act is the result of a lawsuit or injunction, or any other causes beyond the reasonable control or without the fault of the Party claiming an extension of time to perform. Any extension of time for any such cause hereunder shall be for the period of the delay caused thereby and shall commence to run from the time of the commencement of the cause, if notice by the Party claiming such extension is sent to the other Parties within thirty (30) days after the commencement of the cause. Times of performance under this Agreement may also be extended by mutual agreement in writing by and among the Parties. I. Each of the Parties shall have the right at all reasonable times and at no cost or expense to inspect the books and records of Developer pertaining to any charge or assessment for Maintenance Costs or Repair Costs up to the time such charges or assessments become final in accordance with the provisions of this Agreement. Matters learned by any Party in the course of such inspections shall not be disclosed to third parties unless required by law or unless otherwise resulting from or related to the pursuit of any remedies or the assertion of any rights by the inspecting Party hereunder. m. The City Manager of the City is authorized to sign, on his own authority, on behalf of the City and/or the Successor Agency, amendments to this Agreement which are of routine or technical nature. n. Each Party represents and warrants the following: they have carefully read this Agreement, and in signing this Agreement and agreeing to be bound by the same, they have received independent legal advice from legal counsel as to the matters set forth in this 1808950.13 21469-930 14 Agreement, or have knowingly chosen not to consult legal counsel as to the matters set forth in this Agreement, and they have freely signed this Agreement and agreed to be bound by it without any reliance upon any agreement, promise, statement or representation by or on behalf of any other Party, or its respective agents, employees, or attorneys, except as specifically set forth in this Agreement, and without duress or coercion, whether economic or otherwise. This Agreement shall be interpreted as though prepared equally by all of the Parties. o. If any Party hereto files any action or brings any action or proceeding against the any other Party or Parties arising out of this Agreement, seeks the resolution of disputes, or is made a party to any action or proceeding brought by a third party with respect to this Agreement, then as between the complaining Party and the Party or Parties named in such action, the prevailing Party shall be entitled to recover as an element of its costs of suit or resolution of disputes, and not as damages, its reasonable attorneys' fees as fixed by the Court or other forum for resolution of disputes as may be agreed upon by the Parties in such action or proceeding or in a separate action or proceeding brought to recover such attorneys'fees. p. Any Party shall have the right to encumber its interest in its respective Parcel (subject to the limitations described in this Agreement with respect to encumbrance of the Access Road or Access Road Improvements) by either mortgage or deed of trust, provided such mortgage or deed of trust is subject to and subordinate to this Agreement. Notwithstanding the foregoing, such mortgage or deed of trust, once recorded in the Official Records, shall at all times remain superior to and have priority over any breach of this Agreement. The breach or default of this Agreement shall not defeat or render invalid the lien of any mortgage or deed of trust made in good faith and for value on any Parcel or Parcels after the date of the recording of this Agreement in the Official Records, but the agreements, conditions, covenants, easements, restrictions and obligations hereof shall be binding and effective against any fee owner whose title is acquired by foreclosure, deed in lieu of foreclosure, trustee's sale, or other enforcement of rights under such mortgage or deed of trust. q. Unless otherwise indicated with respect to a requirement, all time frames for performance of an act required or permitted by this Agreement shall be calendar days. Time frames measured in months shall be calculated with reference to the actual number of days in the relevant months. Annual time frames shall mean a period of 365 days. r. This Agreement shall be executed in four (4) duplicate originals, each of which is deemed to be an original. This Agreement constitutes the entire understanding and agreement of the Parties. The Parties may sign this Agreement in counterparts. s. This Agreement and the other written instruments executed in connection herewith integrate all of the terms and conditions mentioned herein or incidental hereto, and 1808950.13 21469-930 15 supersede all negotiations or previous agreements between the Parties with respect to all or any part of the subject matter hereof. t. All waivers of the provisions of this Agreement and all amendments hereto must be in writing and signed by the appropriate representatives of the Parties. Other than minor or technical amendments which the City Manager may approve on his own authority, any amendment to this Agreement must be approved by the City Council of the City. u. The Effective Date of this Agreement (the "Effective Date") shall be when both of the following have occurred: (i) this Agreement has been approved by the City Council, both on behalf of the City and acting as the legislative body of the Successor Agency; and (ii) the date when the last signature on behalf of a Party is affixed hereto. v. The Successor Agency hereby represents that all necessary approvals of the Oversight Board have been received. [SIGNATURES COMMENCE ON FOLLOWING PAGE] 1808950.13 21469-930 16 NOW,THEREFORE,THE PARTIES, AND EACH OF THEM, INTENDING TO BE BOUND TO THE TERMS AND CONDITIONS OF THIS AGREEMENT, HAVE SET FORTH THE SIGNATURES OF THEIR AUTHORIZED REPRESENTATIVES. CITY: DEVELOPER: CITY OF CATHEDRAL CITY, M & M PROPERTY COMPANY, LLC, a municipal corporation a California limited liability company By: By: Charles P. McClendon, City Manager Michael Murphy, Managing Member Date: klworYlkti°✓ (.Y , 2015 Date: , 2015 SUCCESSOR AGENCY: CONNEAUT: CITY OF CATHEDRAL CITY SOLELY CONNEAUT PARTNERS, LLC, IN ITS ROLE AS SUCCESSOR AGENCY TO a California limited liability company THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF CATHEDRAL CITY, a separate legal entity existing under the . .1 : Safet Cod- By: o'""M•i 147■417/e/— IThomas Hollister, Managing Partner OA& _ LA- Date: /tlr1 i CV (l' , 2015 Charles P. McClendon, Executive Director Signed In Date: N)Vi vnbev , 2015 Counterpart Attest: fd POW g Gary F. o 'ell City Clerk Approved as to form: GREEN DE BORTNOWSKY, LLP City Attorney Charles R. Green CATH\0046-47\Non-Exclusive Easement Agreement(11-4-15).docx 1808950.13 21469-930 17 NOW,THEREFORE,THE PARTIES,AND EACH OF THEM, INTENDING TO BE BOUND TO THE TERMS AND CONDITIONS OF THIS AGREEMENT, HAVE SET FORTH THE SIGNATURES OF THEIR AUTHORIZED REPRESENTATIVES. CITY: DEVELOPER: CITY OF CATHEDRAL CITY, M & M PROPERTY COMPANY, LLC, a municipal corporation a California limited liability company By: By: ( ,(--\ Charles P. McClendon, City Manager Michael Murphy, Man ember Date: , 2015 Date: II D-31/ , 2015 SUCCESSOR AGENCY: CONNEAUT: CITY OF CATHEDRAL CITY SOLELY CONNEAUT PARTNERS, LLC, IN ITS ROLE AS SUCCESSOR AGENCY TO a California limited liability company THE FORMER REDEVELOPMENT AGENCY OF THE CITY OF CATHEDRAL CITY, a separate legal entity existing under the Health &Safety Code By: Thomas Hollister, Managing Partner By: Date: , 2015 Charles P. McClendon, Executive Director Signed In Date: , 2015 Counterpart Attest: Gary F. Howell City Clerk Approved as to form: GREEN DE BORTNOWSKY, LLP City Attorney Charles R. Green CATH\0046-47\Non-Exclusive Easement Agreement(11-4-15).docx 1808950.13 21469-930 17 CERTIFICATE OF ACKNOWLEDGMENT A NOTARY PUBLIC OR OTHER OFFICER COMPLETING THIS CERTIFICATE VERIFIES ONLY THE IDENTITY OF THE INDIVIDUAL WHO SIGNED THE DOCUMENT TO WHICH THIS CERTIFICATE IS ATTACHED,AND NOT THE TRUTHFULNESS,ACCURACY, OR VALIDITY OF THAT DOCUMENT. State of r U l I fC v Ir11 Ci ) County of 1-`)I v(VSi(le ) On Iv oir vy*x v kii,206 before me,--t 4(JC 'L-) 12, h d I' � L1 LYkI t'21 P� Date e e Insert Name and Title of the Officer personally appeared Chi✓1e5 P. h'tc r 1 e v'1�C Name(s)of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(/ whose name(' is/ark subscribed to the within instrument and acknowledged to me that he/sO/tVey executed the same in his/hWr/thtir authorized capacity(ie,j, and that by TRACEY R.IIIARTINEI his/h /thr signature(sf on the instrument the person(sf, or the Commission•2104537 entity upon behalf of which the person(y)! acted, executed the 1 �: instrument. .. Notts!PubNe-coma ►� Riverside Counsy f Comm,ergs 21 2019 I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signaturtj itAtzay inC'ti1{,� Place Notary Seal Above CERTIFICATE OF ACKNOWLEDGMENT A NOTARY PUBLIC OR OTHER OFFICER COMPLETING THIS CERTIFICATE VERIFIES ONLY THE IDENTITY OF THE INDIVIDUAL WHO SIGNED THE DOCUMENT TO WHICH THIS CERTIFICATE IS ATTACHED,AND NOT THE TRUTHFULNESS,ACCURACY, OR VALIDITY OF THAT DOCUMENT. State of C(,t f I LHO I C' County of vevsjd� On Nwe,mbev Il0,7CF before me, > e, 'P Yv e7) NcA i 143 Pc-1191 IC., Date � ere Insert Name and Title of the Officer personally appeared CM Virn P- hr C hirl(1cx-) Name(s)of Signer(s) who prov d to me on the basis of satisfactory evidence to be the person(whose names is/ape subscribed to the within instrument and acknowledged fo me that he/s04/tVey executed the same in his/h'r/th r authorized capacity(iest and that by his/h¢r/th it signature(s) on the instrument the personas, or the TIiACEYR.MAATINEt entity upon behalf of which the person(Vacted, executed the .•r r. Commission•2104537 instrument. `arr. 1! Notary Public-CaM101Riat z RiversideCosj I certify under PENALTY OF PERJURY under the laws of the State Comm.E 21 2019 of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signatur- / Place Notary Seal Above CERTIFICATE OF ACKNOWLEDGMENT A NOTARY PUBLIC OR OTHER OFFICER COMPLETING THIS CERTIFICATE VERIFIES ONLY THE IDENTITY OF THE INDIVIDUAL WHO SIGNED THE DOCUMENT TO WHICH THIS CERTIFICATE IS ATTACHED,AND NOT THE TRUTHFULNESS,ACCURACY,OR VALIDITY OF THAT DOCUMENT. State ofCQ I ' CA/r1i61 ) County of RI VCi/r3OE ) On kwPi '1-4020I before me,TV P YY,t 1 n TZ ��()-Z1■41- RM. IC_ Date t (eIn�sert Name and Title of the Officer J personally appeared -rIn( y) 4S _eL%015 I!Ut t Name(s)of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(sfwhose name ] is/a/6 subscribed to the within instrument and acknowledged to me that he/sly /th${y executed the same in his/hO/thr authorized capacity(i0, and t at by his/hO/their signatures) on the instrument the person(sror the TRACEY R. MARTINEZ entity upon behalf of which the personCe acted, executed the :4 Commission 2101537 instrument. ., Notary Public-California Riverside County My Comm. Expires A 21,2019 I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. • Signatur:a A . 1 _ 10 Place Notary Seal Above I CERTIFICATE OF ACKNOWLEDGMENT A NOTARY PUBLIC OR OTHER OFFICER COMPLETING THIS CERTIFICATE VERIFIES ONLY THE IDENTITY OF THE INDIVIDUAL WHO SIGNED THE DOCUMENT TO WHICH THIS CERTIFICATE IS ATTACHED,AND NOT THE TRUTHFULNESS,ACCURACY,OR VALIDITY OF THAT DOCUMENT. State of C � ) County ofa.vA.Ae ) On 1.IOve mbe r a3, 020 LS—before me, M • 1 . vl o} t p,d,•� t� Date H re Insert Name and Title of the Officer personally appeared M i h M . who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) are subscrii d to the within instrument and acknowledged to me that(jYshe/they executed the same in /her/their authorized capacity(i s), and that by /her/their signatures) on the instrument the person(s), or the entity upon behalf of which the person( acted, executed the � ,,, M.T.HO instrument. °s Commission No. 2036411 A NOTARY PUBLIC-CALIFORNIA I certi under PENALTY OF PERJURY under the laws of the State '' AUWEDACOUNTY L477:71, My Comm.Expires AUGUST 10,2017 of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. Signature k Place Notary Seal Above NON-EXCLUSIVE EASEMENT AGREEMENT WITH MAINTENANCE COVENANTS (M & M PROPERTY COMPANY—CONNEAUT) EXHIBIT LIST EXHIBIT"A": Reduced copy of recorded Parcel Map No. 36428 EXHIBIT"B": Legal description of"Original Conneaut Land" EXHIBIT"C": Legal description of"Former Conneaut Land" EXHIBIT"D": Certificate of Compliance for Lot Line Adjustment No. 2014-469 and Legal Descriptions of Revised Parcel 2 and Revised Parcel 5. EXHIBIT"E": Cost Proration Percentages NON-EXCLUSIVE EASEMENT AGREEMENT WITH MAINTENANCE COVENANTS (M & M PROPERTY COMPANY—CONNEAUT) EXHIBIT"A" Parcel Map No. 36428 RECORDED JULY 1, 2013, IN BOOK 235, AT PAGES 69-71 OF PARCEL MAPS, OFFICIAL RECORDS OF RIVERSIDE COUNTY follows this page: NON-EXCLUSIVE EASEMENT AGREEMENT WITH MAINTENANCE COVENANTS (M & M PROPERTY COMPANY—CONNEAUT) EXHIBIT"B" Legal Description of"Original Conneaut Land" follows this cover page: 1808950.13 21469-930 EXHIBIT"B"- Page 1 of 2 ORIGINAL CONNEAUT LAND Parcels 21 through 24 and a portion of Parcel 25 of Parcel Map No.8635, as shown by map on file in Book 38, Page(s) 65, 66 and 67 of Parcel Maps, Records of Riverside County.California. Division 1: Parcel 21 of Parcel Map 8635, in the City of Cathedral City, County of Riverside, State of California; as shown by map recorded In Book 38, Page 65 through 67 inclusive, of Parcel Maps; and as amended by a Certificate of Correction recorded January 22, 1987 as Instrument No. 87- 16835, Records Riverside County, California, together with that portion of Parcel 22, described as follows: Beginning at the Northeast corner of said Parcel 22; Thence North 55° 41' 00" West along the Northerly Line; 10.00 Feet; Thence South 34° 26' 25" West parallel with the Easterly Line; 278.67 Feet to a Point in the Southerly Line; Thence South 56° 34' 10" East, 10.00 Feet to the Southeast Corner; Thence North 34° 26' 25" East,278.52 Feet to the True Point of Beginning. Division 2: Parcels 22, 23 and 24 of Parcel Map 8635, in the City of Cathedral City, County of Riverside, State of California, as shown by map recorded in Book 38, Pages 65 through 67, inclusive, of Parcel Maps, and as amended by a Certificate of Correction recorded January 22, 1987 as Instrument No. 87-16835, Records of Riverside County, California, together with that portion of Parcel 25, described as follows: Beginning at the Northeast corner of said Parcel 25; Thence North 55°41' 00" West along the Northerly Line; 10.00 Feet: Thence South 34° 45' 40" West parallel with the Easterly Line of said Parcel 25, 281.95 Feet to a Point in the Southerly line; Thence South 56° 34' 10" East, 10.00 Feet to the Southeast Corner; Thence North 34°45'40" East. 281.80 Feet to the True Point of Beginning; 1808950.13 21469-930 EXHIBIT"B"- Page 2 of 2 Except that Portion of Parcel 22, described as follows: Beginning at the Northeast Corner of Said Parcel 22; Thence North 55°41'00" West along the Northerly Line: 10.00 Feet; Thence South 34°26' 25" West parallel with the Easterly Line,278.67 Feet to a point in the Southerly Line; Thence South 56°34' 10" East, 10.00 Feet to the Southeast corner; Thence North 34°26'25" East 278.52 Feet to the True Point of Beginning. As described In an ALTA/ASCM Land Survey prepared by The Thomsen Company. Inc.,dated February 4, 2004. Source of Legal Description: Unrecorded lease executed February 4, 2004, between Tramview Land Company and CCC Properties, LLC. 1808950.13 21469-930 NON-EXCLUSIVE EASEMENT AGREEMENT WITH MAINTENANCE COVENANTS (M & M PROPERTY COMPANY—CONNEAUT) EXHIBIT"C" Legal Description of"Former Conneaut Land" follows this cover page: 1808950.13 21469-930 EXHIBIT"C" FORMER CONNEAUT LAND All that certain real property situated in the County of Riverside, State of California, described as follows: Parcel 11 of Parcel Map No. 36428, in the City of Cathedral City, County of Riverside, State of California, as shown on the map recorded in Book 235, Pages 69 through 71, inclusive of Parcel Maps, in the Office of the County Recorder of said County. Containing 0.16 acres more or less. Assessor's Parcel Number: 687-510-046-7 1808950.13 21469-930 NON-EXCLUSIVE EASEMENT AGREEMENT WITH MAINTENANCE COVENANTS (M & M PROPERTY COMPANY—CONNEAUT) EXHIBIT"D" Certificate of Compliance for Lot Line Adjustment No. 2014-469 follows this cover page: 1808950.13 21469-930 NON-EXCLUSIVE EASEMENT AGREEMENT WITH MAINTENANCE COVENANTS (M & M PROPERTY COMPANY—CONNEAUT) EXHIBIT"E" Cost Proration Percentages follows this cover page: 1808950.13 21469-930 EXHIBIT «E» COST PRORATION PERCENTAGES Parcel No. Size(acres) Size(s.f.) Owner Percentage (Benefitted parcels) of Total Revised Parcel 2 3.6258 157,899 M&M 26.488 Revised Parcel 5 2.815 122,640 M&M 20.573 6 3.74141 162,975.8 City 27.340 7 2.05158 89,366.7 City 14.992 8 0.61978 26,997.5 Conneaut 4.529 10 0.83170 36,228.8 Conneaut 6.078 13.68527 ac. 596,107.8 s.f. 100.000 Notes: Parcels 1, 3, 4, 9 and 11 of Parcel Map No. 36428, as modified by the Lot Line Adjustment, are not a part of the Cost Proration. Parcels 1 and 11 are the Access Road; Parcels 3 and 4 do not front the Access Road. Parcel 9 (0.83 ac.) does not front the Access Road; however if parcel configurations change such that Parcel 9 does have access to the Access Road, then the above Cost Prorations may change, per the terms of this Agreement. Revised Parcel 2 is the former Parcel 2 and a portion of the former Parcel 5, revised per the Lot Line Adjustment, and Revised Parcel 5 is the remainder of the former Parcel 5, revised per Lot Line Adjustment. The Cost Prorations set forth on this Exhibit shall be the percentages used to determine each Party's share of the Costs of the annual Maintenance Costs. 1808950.13 21469-930 or rn.tj Recorder LARRY W. WARD P.O. Box 751 COUNTY OF RIVERSIDE Riverside,CA 92502-0751 ASSESSOR-COUNTY CLERK-RECORDER (951)486-7000 <, rat DOCUMENTARY TRANSFER TAX AFFIDAVIT Website: www.riversideacr.com WARNING ANY PERSON WHO MAKES ANY MATERIAL MISREPRESENTATION OF FACT FOR THE PURPOSE OF AVOIDING ALL OR ANY PART OF THE DOCUMENTARY TRANSFER TAX IS GUILTY OF A MISDEMEANOR UNDER SECTION 5 OF ORDINANCE 516 OF THE COUNTY OF RIVERSIDE AND IS SUBJECT TO PROSECUTION FOR SUCH OFFENSE. ASSESSOR'S PARCEL NO. 687-510-043-4 I declare that the documentary transfer tax for this Property Address: Vacant Land,Conneaut parcels,Cathedral City, transaction is: $0.00 CA If this transaction is exempt from Documentary Transfer Tax,the reason must be identified below. I CLAIM THAT THIS TRANSACTION IS EXEMPT FROM DOCUMENTARY TRANSFER TAX BECAUSE: (The Sections listed below are taken from the Revenue and Taxation Code with the exception of items 9 and 10 which are taken from Riverside County Ordinance 516).Please check one or explain in "Other'. 1. _ Section 11911. The consideration or value of the Property,exclusive of any liens and encumbrances is$100.00 or less and there is no additional consideration received by the grantor. 2. _ Section 11911. The conveyance transfers to a revocable living trust by the grantor or from a revocable living trust to a beneficiary. 3. _ Section 11921. The conveyance was given to secure a debt. 4. X Section 11922. The conveyance is to a governmental entity or political subdivision. 5. _ Section 11925. The transfer is between individuals and a legal entity or partnership,or between legal entities,and does not change the proportional interests held. 6. _ Section 11926. The conveyance is to a grantee who is the foreclosing beneficiary and the consideration paid by the foreclosing beneficiary does not exceed the unpaid debt. 7. _ Section 11927. The conveyance relates to a dissolution of marriage or legal separation. (A spouse must sign a written recital in order to claim this exemption. This form may be used for that purpose.) 8. _ Section 11930. The conveyance is an inter vivosgift*or a transfer by death. *Please be aware that information stated on this document may be given to and used by governmental agencies,including the Internal Revenue Service.Also,certain gifts in excess of the annual Federal gift tax exemption may trigger a Federal Gift Tax.In such cases,the Transferor(donor/grantor)may be required to file Form 709(Federal Gift Tax Return)with the Internal Revenue Service. 9. _ Section 8. The easement is net perpetual,permanent,or for life. 10. _ Section 9. The document is a lease for a term of gm than(35)years(including written options). 11. _ Other (Include explanation and authority) I DECLARE UNDER PENALTY OF PERJURY THAT THE FOREGOING IS TRUE AND CORRECT. Execu ' this 3,day of December,2015 at Ontario CA /�i 1� City State ' V/ ,, Matt Hooks Signature of Affiant Printed Name of Affiant First American Title Insurance Company 3281 E.Guasti Rd.,Ste.440,Ontario,CA 91761 Name of Firm(if applicable) Address of Affiant(including City,State,and Zip Code) (909)510-6207 Telephone Number of Affiant(including area code) This form is subject to the California Public Records Act(Government Code 6250 et.seq.) For Recorder's Use: Affix PCOR Label Here ACR 521(Rev. 11/2014) Available in Alternative Formats