HomeMy WebLinkAboutRDA RES 287RESOLUTION NO.287
PASSBD, APPROVBD AND ADOPTBD this 9th day of September,
A RBSOLUTIOI i OF Ti PALM DBSBRT RBDSV$LOPI I i'1' AGSNCY
APPROVING AN B%CHAI IGB AGR$BI NT
THE PALM DESERT REDEVELOPMENT AGENCY HEREBY FINDS,
DETERMINES, RESOLVES AND ORDERS AS FOLLOWS:
Section 1. Pursuant to notice duly given, the City
Council of the City of Palm Desert and the Palm Desert
Redevelopment Agency have held a full and fair joint public hearing
on the disposition by the Agency to David Freedman & Co., Inc., a
California Corporation, of certain real property (the "Site")
located in Project Area No. 2 pursuant to the Exchange Agreement
attached hereto as Exhibit A.
Section 2. The Agency has made available to the public
throuqh the office of the City Clerk of the City of Palm Desert a
copy of such Bxchange Aqreement together with a Summary of the cost
thereof to the Agency, which Summary is attached hereto as
gxhibit B. The Swamary delineates the costs of such Exchanqe
Aqreement to the Aqency, includinq acquisition costs.
Section 3. The Aqency hereby approves the disposition of
the subject property pursuant to such Bxchanqe Aqreement.
1993.
AYLS:
NO$S:
ABSSNT:
RBSOLUTION NO. 287
CRITES, K$LLY, SNYDBR AND B$NSON
NONE
WILSON '
ABSTAIN: NONE
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K.' / l i ,' 1
Ag'TEST : ,
. /
/ r % ' ,LL
Sheila R. Yiqan, Se etary
0
M. Benson, Chairperson
S L::T =`"7 V0. 237
SUMMARY
The followinq is a summary of the cost of disposition
of certain real property owned by the Aqency pursuant to that
certain Exchange Aqreement between the Palm Desert Redevelopment
Agency and David Freedman & Co., Inc., a California corporation
(the "Purchaser"), regardinq the property (the "Property' )
located easterly of the intersection Portola Avenue and Gerald
Ford Drive, described in Exhibit "A" attached hereto and
incorporated by reference herein. Such real property consists of
two adjacent parcels. One parcel consists of approximately 113
acres and is northeast of the intersection of Portola Avenue and
Gerald Ford Drive. The second parcel consists ot approximately
20 acres and is southeast of the intersection of Portola Avenue
and Gerald Ford Drive.
1. The Aqency purchased the Property in 1990 for the
sum of 55,950,000. The Aqency is exchanging the Property with
the Purchaser, and the value the parties are placinq on the
Property for the purpose of such exchanqe is tha sum of
$5,950,000.00.
2. There are no clearance costs to the Aqency
associated with the disposition of the Property.
3. There ars no relocation costs to the Aqency
associated with the disposition of the Property.
4. There ar4 no improvements to be provided by the
Agency pursuant to the subject Exchanqe Agreement and the
disposition of tha Property.
5. There are no interest costs because no loans or
bonds of the Aqency wory be made or issued to finance tha
Aqency's obliqations under the subject Exchanqe Aqreement.
6. The estimated value of the interast in tha
Property to ba conv y d, determined at the hiqhest uses permitted
under the Redevelopm nt Plan for Project Area No. 2 is
$5,950,000.
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Exhibit A
Legal Description
PARCEL 1:
That portion of the Southwest quarter of Section 28, Township 4
South, Range 6 Ea5 t',"S n Bernardino Base and Meridian, in the
City of Palm Desert, according to the Official Plat thereof,
wh ich lies Southe ly,of the riqht of way of the Southern Pacific
R ►ilroad Company ; '
EXCEPT lf l6th of all coal, oil, gas and other mineral deposits in
said lands, as reserved in Patent from the State of California to
Ruth A. Clarke,. zecorded October 20, 1926 in Book 9 paqe 178, of
P tents, Records of Riverside County, California;
ALSO EXCEPT a one-half interest in and to any and all oil and
mineral riqhts, as reserved in deed from Ralph E. Wyer, et al, to
John J. Kovacevich and Beverly Ellen Kovacevich, husband and
wife, recorded Auqust 25, 1955 in Book 1785 page 467 of Official
Records ot Riverside County, California.
PARCEL 2:
That portion ot the
South, Ranqa 6 East,
City ot Palm Desert,
which lies Southarly
Railroad Company.
PARCEL 3:
•
Southeast quarter oi Section 28, Township 4
San Bernardino Base and Meridian, in the
as shown by United States Government Survey,
of tha rigiit of way ot the Southern Pacific
That portion ot th Nortwest Quarter ot section 33, Township 4
South, Ranqa 6 East, mor• particularly described as follows:
Beqinninq at th Nortwost corrrer of tha Nortwest quarter oi said
Section 33; thanc alonq tha North line ot said Section 33, Nort
89'55'55" Eaat 2,647.98 teot; then South 00'04'07" East 329.01
feet; thanc , alonq a line parallel to said North line, South
89'55'55" W st 2647.83 ieet to the West line of said Section 33;
Thencs, alonq eaid w st line, North 00'05'40" West 329.01 test to
the Point o! Baqinninq.
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519-327-8�ci6 Fax 6i9-3�7-13�2
EXL:ANGE AGREEMENT AND JOINT ESCROW INSTRUCTZONS
This Exchanqe Aqreement and Joint Escrow Instructions ;'��h�s
Agreement") is made and entered into as of the �;r�;day of ��.
te�*iber , 1993 , by and between the PALM DESERT REDEVELOP*�E�;'='
AGENCY, a public body, corporate and politic (hereinafter
referred to as the "Aqency��), on the one part, and MORTON B.
ULMAN and ANDREE ULMAN (sometimes collectively referred to r.erein
as "Ulman"), LIONEL STEINBERG (sometimes referred to herein as
"Steinberq"), and DAVID FREEDMAN & CO., INC., a California
corporation (aka "David Freedman Co., Inc.") (sometimes referred
to herein as "Dafco")(Ulman, Steinberg and Dafco hereinafter
beinq collectively referred to as "Freedman") on the other par�,
with respect to the followinq facts:
��• � .
A. Dafco and Ulman are the owner.s of certain real proper�:
(the "Freedman Property") located in the City of Palm Desert,
County of Riverside, State of California, de$cr.ibed in Exhibit
"A" attached hereto and incorporated herein by this reference;
however, a portion ot the property described as. the "Dafco/Ulman
Parcel" is owned by Datco and Ulman as tena�ts in common, and t�e
remainder oi the proparty described as tha Dafco/Ulman Parcel,
and the property described in Exhibit A as the "Cook Street
Extension" (Parcels 1 throuqh 8) is owned by Dafco alone. The
Freedman Property consists of 9 parcels containinq approximateiy
215.875 acres.
B. Lionel Steinberq has an unrecorded �ption to purchase
certain portions o! the Freedman Property. concurrently
herewith, Lionel Steinberg is exercising such option to purchase
certain portions oi the Freedman Property and shall be conveyinq
same to the Agency.
.��C. The Aq�ncy is the owner of certain real property (t?�e
"Aqency Proparty"j located ir} the City of Palm Desert, County cf
Riversida, Stato of California, described in Exhibit "B" attac:�ed
hereto and incorporatad herein by this reference. The Agency
Property consists ot 3 parcels containinq approximately 133 acres
in the aqqreqate.
D. Both th• Aqoncy Property and the Freedman Property are
located in Projsct Ar�a No. 2 oi the Palm Desart Redevelopment
Aqency.
E. By this Aqr�amant, Freedman is aqreeinq to exchange t::e
Freedman Proparty tor the following: (i) receipt by Dafco of a
grant daad to tha Aq4ncy Property and (ii) receipt by Freedman
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from the Age::cy of the sum of S5,000,000. The Aqency is aqreeir.q
to convey the Aqency Property to Dafco by way of exchange, and to
pay to Freedman the sum of S5,000,000 for the Freedman Prope�•:,
in accordance with the terms and provisions hereof.
NOW, THEREFORE, the parties hereto do hereby aqree as
follows:
���*-t.- ;. --��-�
Subject to and in accordance with the terms and
conditions hareinafter set forth, Fresdman aqrees to convey t::e
Freedman PropQrty to the Aqency in exchanqe for the sum of
55,000,000 ("Cash Consideration"� plus receipt by Dafco of a
qrant deed to the Aqancy Property, and the Aqency agzees to
convey to Dafco the Aqency Proparty and to pay the Cash
Consideration to Freadman in exchanqe for the Freedman Property.
For purposes of this exchanqe the parties acknowledqe that the
aqreed value ot the Freedman Property is $11,097,703 and the
aqreed value ot the Aqency Property is S5,95�,000. The Aqency
aqrees that tha total consideration (i.e., th� Cash Consideration
plus the value oi the Aqency Property) is the aqreed price for
211.b55 acras o! th• Dafco/Ulman Parcel and Parcels 1, 3, 4, 5,
and 6(as describad on Exhibit "A"). Tho remaininq 4.22 acres
deacrib�d as Parcals 2, 7 and 8(the "qift parcals") on Exhibi:.
"A" ar• b�inq qrant�d by Freedman to the Aqency as a qift, and �
tha aqraed valu4 ot ths qi�t parcels is tha sum of 5147,702.80.
To this and, tha qrant do�d from Freedman to th• AqencY convey:r,a
the qift parcels shall contain a notation that "Grantor is
conveyinq to tha Palm Des�rt Redovalopment Aqancy as a gift, �-:�
without consideration, th4 real property described herein."
•. � �- - �. . �. . - .
Concurrently herawith, an escrow shall be opened with The
Escrow Connection ("Escrow Holder"), Kathy Kleindienst, Escrcw
Otticer, tor tho purpos• oi causinq the exchanqe of tha FreedWan
Property and the Aq�ncy Property and tha payment by tha Aqenc•� r�
Freodman of th� Cash Consideration in th� sum or SS,000,000. =�r
tho purpos�s of this Aqra�m4nt, openinq ot Escrow shall mean �~e
data on which E�crow Holdar shall have rsc�ivad axacuted
counterparts ot this Aqreament from th0 Aqency and Freedman, and
Clos• o! Escrow shall b• the date that a qrant d�d for the
Fraadman Prop�rty in lavor ot tha Agancy and a qrant deed for =:�e
Aq�nc�r Prop�rty in tavor ot Dafco are record�d in th� Riverside
County�Record�r's Otlic�. The Close of Escrow shal L.a�cur on �.
b�ior• S�pt�mb�r 30, 1993.
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(a) On the Close of Escrow, Freedman covenants
and aqrees to cause to be delivered to the Aqency a duly execuced
and acknowledqed grant deed conveyinq to the Aqency all of
Freedman's interest in the Freedman Property subject only to �::e
Freedman Property Permitted Title Exceptions approved by the
Aqency, as provided below.
Eb) Ort the Closinq Date, the Aqency covenants and
aqrees to cause to ba delivered to Dafco a duly executed and
acknowledqed grant deed cortveyinq to.;Dafco all of the Aqency�s
interest in the Aqency Property subject only to the Agency
Property Permitted Tit2e Exceptions approved by Dafco, as
provided below.
(c)�� At �he Close of Esczow, the Aqency shall
recei�ve a CLT� O�r's 3tandard Coveraqe Policy of Title
Insurance:iss�aed.by Stewart Title Company ("Title Company��)
insuring in the Aqency fee simple title to the Freedman Proper�•:
free and clear o! all liens and encumbrances other than the
Freedman Property Permitted Title Exceptions, and Dafco shall
receive a_CLTA Owner's Standard Coveraqe Policy of Title
Insuranca isaued by Title Company insurinq in Dafco fee simple
title to tha Aqency Proparty free and clear of all liens and
encumbrances other than tRe Aqency Property Permitted Title
Exceptions.
_ - �• _ * - + -
(a) Th� l�qency has recaived from the Title
Company two preliminary title reports for a CLTA Standard
Coveraqa Owner's Polie�r of Title Insurance for the Freedman
Property, as lollows:
(i) One preliminary title report is dated
September 2,- 1993 and is identiiied as Order No. 110070-i1 ar.d
covers real prop�rty owned solely by Daico. The Aqency hereDy
disapproves tha excaptions noted in paraqraph� 6, 7, 9, 10, ��,
15, 21, 27 and 28 on Schsduls B thereto. Tha exceptions
described tn paraqraphs A, B, C, D, E, F, 1, 2, 3, 4, 5, 8, ::,
12, 13, 26, 17,='I8, 19, 20, 22, 23, 24, 25 and 26 on Schedule 3
thereto aYa h�riby approved by the Agency.
-•-� -(ii) One preliminary titlQ report is date�
Auqust 27•r• •19�9�3 and is identified as Ord�r No. 110059-11, and
covars ortly rral prop�rty owned by Ulman and Datco, as tenants :-.
common. Th� Aq�ncy h�r�by disapprov�s the exceptions noted :n
paraqraphs S and 9 Schedule B thareto. The exceptions descr=�e�
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in paraqraphs A, H, C, D, E, F, 1, 2, 3, 4, 5, 6, and 7 on
Schedule B thereto are hereby approved by the Agency.
(iii) The title exceptions approved by t::e
Aqency described above are hereinafter referred to as "Freedman
Property Permitted Title Exceptions."
(b) Freedman has received from the Title Company
a preliminary title report (the "Aqency Property Preliminary
Title Report") for a CLTA Standard Coverage Owner's Policy of
Title Insuranca for the Aqency Property dated Auqust 13, 1993,
Order No. 110019-11. Fraedman hareby disapproves the exception
noted in paraqraph 18 on Schedule B thereto. The exceptions
described in paraqraphs A throuqh and includinq F and
paragraphs 1 through and including 17 on Schedi�Ie B thereto are
hereby approved by Freadman (the "Aqency Property Permitted Tit�e
Exceptions"). '
(c) As to any exception to title (each, a
"Disapproved Freedman Property Exception�'� disapproved by the
Aqency for the Freedman Property, Freedman shall use its best
efforts to cause such Disapproved Freedman.Property Exception to
be discharqed, satistied, released, or terminated, as the case
may be, ot rscord, and in a form that is reasonably satisfactory
to tho AqQncy and Title Company. Freedman authoriZes Escrow
Holder to disbursa from tha cash portion of the Purchase Price -
and proceads otharwisa disbursabla to Freedman upon closing a su:�
sulficient to discharqo any Disapproved Freadman Property
Exception that may bo discharqed only by the payment of money.
Such payment shall b� d�ducted tirst from Dafco and the balance
shall be deducted from Ulman, subject to the riqht of Dafco an�
Ulman to direct Escrow Holder to make a difterent allocation
between them. Ii Freedman is unable to obtain a discharge,
satisfaction, releaae, or termination within the period speci�:e�.
above, then th4 Aqency shall have the right to:
(A) waive the Disapproved Freedman
Prop4rty Excoption and proceed with Closs of Escrow,
acceptinq titl• to ths Freedman Property subject to the
Disapproved Frsedman Property Exception, or
(H) terminate this Aqreement, in wh��:z
event both the Aqency and Freedman shall be relieved of a::
furth�r obliqation and liability to each other under this
Aqro�,�nt and all th� iunds and documents deposited with
Escrow Hold�r ahall b� promptly r�iund�d or returned, as �:�:e
cass may b�, by Escrow Holder to the depositing party.
(d) As to any exception to title (each, a
"Di�approved Agoncy Prop�rty Exception") disapproved by Freedman
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RESOLL"I'��N ti0. 287
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for the Aqency property, the Aqency shall use its best efforts ��
cause such Disapproved Agency Property Exception to be
discharqed, satisfied, released, or terminated, as the case way
be, of record, and in a form that is reasonably satisfactory to
Freedman and Title Company. It the Aqency is unable to obtain a
discharqe, satisfaction, release, or termination within the
period specified above, then Freedman shall have the right to:
(A) waive the Disapproved Exception and
proceed with the Close of Escrow, acceptinq title to the
Aqency Property subject to the Disapproved Agency Property
Exception, or
(B) terminate this Agreement, in whic:�
event both the Agency and Freedman shall be relieved of ail
further obliqation and liability to each other under this
Aqreement and all the funds and documents deposited with
Escrow Holder shall be promptly refunded or returned, as �::e
case may be, by Escrow Holder to the depositing party.
�-.. . �. ��-f - � - .
(a) Freedman hereby covenants and agrees
deliver to Escrow Holder prior to the Clos� of Escrow the
tollowinq instrumants and documants, tha delivery of each
which shall be a condition oi tha Close of Escrow:
to
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(i) A Grant Deed duly exscuted and acknowi-
edqed by Fresdman qrantinq and convQyinq to the Aqency good and
marketable titla to tho Freedman Property. Said Grant Deed shai�
be in a form sati�tactory to tha Aqency and its counsel, and
shall contain the notation described in Section 1, above;
(ii) Freedman's affidavit as contemplated �•:
California Revenua and Taxation Code §§18805 and 26131
("withholdinq Altidavit"�;
(iii) -A Certification of Non-Foreign
Status in accordance with I.R.C. Section 1445; and
(iv) Such proof ot Freadman's authority and
authorization to entar into this transaction as the Title Compar.�:
may reasonably rnquir• in order to issus tha Aqency's policy c:
title insuranc�.
(b) Th• Aqoncy covenants and aqr��s to deliver c�
Escrow Hold�r prior to th• Close ot Escrow !or disbursement as
hereinaft�r provid�d, th� followinq instrum�nts and documents,
the delivery o!•-each�•o! which shall bo a condition of the Close
ot Escrov: . ,....,...,, . .,.
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(i) A Grant Deed duly executed and acknowl-
edqed by the Aqency, qrantinq and conveying to Dafco good and
marketable title to the Aqency Property. Said Grant Deed shall
be in a form satisfactory to Freedman and its counsel;
(ii) Such proof of the Aqency's authority and
authorization to enter into this transaction as the Title Company
may reasonably require in order to issue Dafco's policy of tit�e
insurance.
6, Agthgri�xtiOR to ReCord Do�u,�}gnts and Disburse
Funds•
Escrow Holder is hereby authorized to record t�e
documents and disburse the funds and documents called for here-
under upon the Closa �f Escrow, provided each of the following
conditions has than been fulfilled:
(a� The Title Company can issue in favor of the
Aqency a CLTA Owner's Standard Coveraqe Policy of Title
Insurance, with liability equal to tha sum of S10,950,000.00
showinq the Freedman Property vested in the Aqency subject only
to the Freedman Proparty Permitted Title Exceptions. In the
event Fraedman has not removed all monetary liens or monetary
encumbrances, or i! a monatary claim is asserted by any third
party, in addition to all other remedies the Aqency may have at �
law or equity, tha Aqsncy may elact to consummate this
transaction and ottset dollar ior dollar aqainst the cash
Consideration an amount equal to any such monetary encumbrances
and claims.
(b) Tha Title Company can issue in favor of Dafc�
a CLTA Standard Coveraqs Owner's Policy of Title Insurance, wi��
liability equal to ths sum o! $5,950,000, showinq the Aqency
Property vested in Dalco subject only to the Aqency Property
Permitted Title Excaptions.
(cj Escrow Hvlder shall have received the
Aqency's notica ot approval or satisfaction or waiver of all c�
the continqoncies to tha Aqancy's obliqations hereunder, as
provided ior in S�ction 13;
(d) Escrow Holder shall have received Freedman's
notice ot approval or satisfaction or waiver of all of the con-
tinqencias to Fraadman's obliqations hareunder, as provided for
in Saction 14s and
(e) Fre�dman shall hav deposited in Escrow the
documants r�quir�d pursuant to Section 5, and the Aqancy shall
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have d�posited in Escrcw the Caah conaidaration as provided in
S�ction 2.
Unl�ss otherwise inatructod in writinq, Escrow Holder is author-
ized to record at the Clos� o! Escrow any inetrumsnt d�livered
throuqh this �acrow it n�c�ssary or proper for isavance of
policies of title in�urance. Due to th• difterent percentage
ownerships of th� various paresls comprisinq the Fra�dman
Property, th• partioa have aqr��d that the Escrow xold�r shall
di�burs• $1,257,489.60 ot the nat procaoda o! th• Caah
Consideration to Ulman, and S3,742,513.40 oP the net proc��ds oR
tha Cash Considaration to Dafco, (less, in both case�, dny
amounts n�c�ssary to pay ott any men�tary liena encumbaring the
Froedman Prop�rty), and Escrow Hold�r is so instructed.
�- •_- +• ��
(a) Th� Aqency and Fr�adman shall each pay one-
half (1/z) of th� •scrow faes and Escrow Aolder�e custamary
out-of-pocket axp�ns�s for messenqer s�rvic�s, �ong dietance
talaphon�, eta. Tha Aq�ncy shall p�y for tha cost of th• CL:A
Standard Cov�raq• Owner'• policy o! Titl� Insurance on the Agency
�rop�rty, and !or rocording the Grant �ead tKarato, th•
Preliminary Titl• R�port thereon. Frs�dman shall pa�-for the
cost of a CLTA Standard Cov�raqe Owtier'e Policy o! Tftla
Insuranc• on the Fri�dman Prop�rty, and tor r�cordinq th• Grant
Deed tharato, th• Preliminary Titls R�port thereon. Dafco aha�l
pay any docuia�ntary trsn�l�r tax�s on the tranel�r o! tha Aqancy
Property to Dalco. TII• �q�acy is �z�pt lros Lh� pay��nt o!
dooua�atarp tranat�r tas�s on tb• tsaa�l�r o! th� rr��dman
Prop�rtt to th� �q�aay purauant to A�vanu� ana Tazatioa Coa�
8�ctiou il9Z�, aad a aotatioa to that •!l�ot �hall b• s�� lOrth
on th• Orant D��4 0! ts� �=���aa psop�rtp to th� a►q�nay. If :.he
escrow shall lail to clore throuqh no lault o! either party, Qach
party shall pay ons-hal! (1/2} o! ariy Escro�r canc�llation
charqs�.
(b) Ot e�crow eharq�s and coe�ts allocable to
Fr�edma�n, Datco shall pay 88.516� o! auch charqes and costs and
Ulman shall pay 11.484� o! such cherqes costs, �xc�pt to the
extent epscitically providsd her�in to th� contrary.
(c) Raal •stata and p�rao�al proparty tax�s and
any other qovsrnn�ntal charges, ae�s��n�nta or impositians
against th� l�r�oaman Prop�rty or tha Aq�noy Prop�rty ahall r.ot �e
proxat�d at th� Clo�� o! Eacrow. Instead, Esvro�r Hold4r is
instructsd to vithhold th� su�e of 510,000 lrom th• Cash
Considaration �til i�suanc• o! th� 1993-1994 tax bill, at wh:�h
time tnx�� shall ba proratad throuqh th• date ot ths Close ot
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Escrow nnd E:row Hold�r ahall disburse the rtecesaary amount =o
tha county tax collsctvr. It auch $10,000 Bum withheld pursua�t
to thi� par�graph ie insufricient to pay th• tax�� that accrued
throuqh th• Closa ot Escrow, th�n Fraadman shall promptly provide
to the Agency tunds in the amount ot the deticisncy.
•� .�. .� . � .. �
Fre�dman h�r�by aqraes to clean up and ramov� all ma�-
mad� debrig and trash dump�d on the Freedman Property as
described in the Phase One Environmontal Asssssm�nt dated Auqust,
1993, pr�par�d by Maini�ro, Smith and A�sociates, Inc., within 3�
dayd atter the Close ot Escrow; however, Froedman shall not be
rQquirsd to r�mov� any natural orqanic debrie su�h as shrubbQry,
vines, trees, weeds, and similar organie r�mr�anta of the faraing
operation arisinq trom the previcus use of the Fra�dman Property.
9. fomittedl
• �•. �.�t - �•
(a) Freedman heraby aqr��s to indamnify the
Agency aqainst, and to hold th� Ag�ncy harml�as and, at the
option of th• ag�ncy, d�fand the Aqency with cour�a�l approv�d by
the Aqency, from all linbilitiss, losses, damaqes, costs and
expenses, includinq without limitation l�qal lasa and disburse-
m�nts, incurr�d by th• Aqaney by reason oE dny claims or
litiqation ralatinq to the Freedman Prvporty and arisinq rrom
acts, occurrences or mstt�rs that took plaaa pricr to the C1osG
ot Eserow.
(b) Ths Agency hereby agrees to ind�mnity Darco
against, and to hold Dalco harml�ss and, at the option or Dalco,
d���nd Dalco with counaol approv�d by Dalco, lrom all
li�biliti��, loss��, danaq�s, costs and expenses, including
without limitation leqal fees and disburs�m�nt�, incurred by
Dafco by r�ason ot any olaims or litigation rolatinq to ths
Agnhcy Property and srisinq tYom acts, oacurrences or mattara
that toak place prior to tha elas� o� Escrow.
(c) Each party aqrees to qiv� to th• other
written notice ot ary third party claim that may give rise to a
claim =or indomnitioation hereundar within thirty (�0) deys after
laarninq o! �uoh third party claimt pzovidad, how�ver, that the
Pailure to qiva tim�ly notic• as har�inabov� provided shall not
dePea�t ar�y claia !or ind�anitication hareundar except to th�
ext�nt th�t th�.�arty to whom auch nvtica was owing is pr�judiced
by the laak o� iuch �im�ly notic�.
� �, . ua < ._..�.. .
930413 ju b9`S-i.J��
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�.S�L:;^'Z,"7 VC. 287
_� -- _*. ;-. -� .� . --. .�
Freedman hereby represents and warrants to the
Aqency the followinq, it being expressly understood and aqreed
that all such representations and warranties are to be true and
correct as of the Close of Escrow, all of which shall survive the
close of Escrow:
. - . . . -. � -
(i) To the best of Freedman's knowledge, t:�e
Freedman Property is free and has always been free from Hazardous
Substances (as defined in Exhibit C) and is not and has never
been in violation of any Environmental Laws (as defined in
Exhibit C). .
(ii) To the best of Freedman's knowledge,
there are no buried or.partial�y buried storaqe tanks located on
the Freedman P�oparty.
, (3.ii) Fre�dman haa received no notice,
warninq, r�o�iCe o! violation, administrativ� complaint, judicial
complaint, or other iormal or intormal notica alleqinq that
conditions qn the Freadman Property are or hava been in violation
of any Environmental Law, or iniorminq Freedman�that the Freedman
PropQrty is subjact to investiqation or inquiry reqarding
Hazardous Substances on the Freadman Property or the potential
violation ot any Environmental Law.
(iv) Thare is no monitorinq proqram required
by the Environmantal Protection Aqency ("EPA") or any similar
state agency concerninq the Freedman Property.
(v) To the best of Freedman's knowledqe, -:�
toxic or hazardous chsmicals, waste, or substances of any kind
have evar been spilled, disposed of, or stored on, under, or at
tha'Freedman Proparty, whether by accident, buryinq, drainage, =_
storage in containars, tanks, cr holdinq areas, or by any other
means.
(vi) To the best of Rreedman's knowledge, �~e
Freedman Prop�rty has n�ver been used as a dump or landfill.
(vii) Freedman has disclosed to the
Aqancy all iniormation, racords, and studias maintained by
Fra�dman in conn�ction with tho Frs�dman P3rop�rty concerning
Hazardous Substancas. . ��-
(b) To tha best ot Freadman's�knowledqe, no
condition on the Fr4�dman Property violates any health, safety,
-9-
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950413 j�r t�6S•b.js�
C
fire, environmental, sewage, buildinq, or other federal, state,
or local law, code, ordinance, or requlation.
(c) To the best of Freedman's knowledge, Freed�an
is the sole owner of the Freedman Property, free and clear of all
liens, claims, encumbrances, easements, encroachments on the
Freedman Property from adjacent properties, encroachments by
improvements or veqetation on the Freedman Property onto adjaceat
property, or rights of way of any nature, other than those thac
may appear on the Preliminary Title Report. Freedman shall not
further encumber tha Freedman Property or allow the Freedman
Property to be further encumbered prior to the Close of Escrcw.
(d) Any information that Freedman has delivered
to the Aqency, either directly or throuqh Freedman's aqents, is
accurate and Freedman has disclosed all material facts with
respect to the Freedman Property.
(e) To the best of Freedman's knowledqe, there is
no pendinq litiqation or threatened litiqation, which does or
will adversely affect the Freedman Property, other than
litigation involvinq claims that are covered by insurance and :or
which the Aqency will have no liability.
(t) To the best of Freedman's knowledge, there
are no actiona or procsedinqs pendinq or threatened aqainst -
Freedman, betore ar�y court or administrative aqency in any way
connected with or relatinq to the Freedman Property, or affecc:::q
Freedmam's ability to fultill all of its obliqations under this
Aqreement. •
(gy Thdre are no written or oral commitments c�
or agreements with any qovernmental authority or agency mater�-
ally and adversoly af�ectinq the Freedman Property, or any par-
thereof or any interest therein, which will survive the
conveyance thereot. Freedman has entered into no understandi::�
or aqreement with any taxinq or assessinq authority respectinq
the inposition or d�t�rmsnt of any taxes or assessments
respectinq the Fre�dman Property.
(h) Neither this Aqreement nor anythinq provi�e�
to ba dona heraund�r including the transter of title to the
Freadman Prop�rty to th� Aqency, violatas or shall violate
articles o!-incorporation or any contract, aqreement or
instrument to which Fraedman is a party, or which aftects the
Frsadman Prop�rty or any part ther�ot, and th� sal� of the
Fr��dman Prop�rty h�r�in contemplated does not require the
consent ot any party not a siqnatory hareto. Ths execution,
deliv�ry and portormanco ot this Aqreem�nt has been duly and
valid�y authoriz�d, and no other action by Fraedman is requisi�e
-10-
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930913 jar b90S-6.j�� —
�ES�'Li.;TIO".1 VO. ��'
to the valid and binding execution, delivery, and performance c�
this Agreement by Freedman.
(i} Freedman is not in default of its obliqaticns
under any contract, agreement or instrument to which Freedman �s
a party which would adversely affect the value of the Freedman
Property or Freedman's ability to perform its obligations
hereunder.
(j) To the best of the Freedman's knowledge,
there are no natural or artificial conditions upon the Freedr�an
Property or any part of the Freedman Property that could result
in a material and adverse change in the condition of the Freedman
Property.
(k) There are no mechanics', materialmen's or
similar claims or liens presently claimed or which will be
claimed aqainst the Fresdman Property for work performed or
commenced prior to the date of this Agreement. Freedman agrees
to hold the Aqency harmless from all costs, expenses,
liabilities, lossas, charqes and fees, includinq without
limitation attorneys' fees, arising from or relating to any such
lien or any similar lien claimed against the Freedman Property
and arisinq from work performed or commenced prior to the Close
ot Escrow except when such work was undertakert by or at the
Aqency's request.
(1) There will be no contracts, licenses,
commitments, or undertakinqs respecting maintenance of the
Freedman Property or equipment on the Freedman Property, or the
perfonaance ot sarvic4s on the Freedman Fropezty, or the use of
the Freedman Property or any part of it by which the Agency wou�3
become obligated or liable to any person.
(m) Thara are no written or oral leases or con-
tra�tual riqht or option to lease, purchase, or otherwise enjoy
possession, riqhts or intetest of any nature in and to the
Freedman Property or aay part-•thereof, and no persons have any
riqht of poasesaion to the Freedman Property or any part thereof.
Freedman shall deliv�r possession of the Freedman Property to t�e
Aqency on th• Clos• ot Escrow free of all tenants and shall
indemnity and hold th• Aqancy harmless from tha claims of any
tenants claiminq a riqht to possession arisinq before the Close
ot Escrcw.
950913 jar b9SS-6.lar
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Freedman shall notify the Aqency of any facts that
would cause any of the representations contained in this
Agreement to be untrue as of the Close af Escrow. If the Aqency
reasonably concludes that a fact materially and adversely affects
the Freedman Property, the Aqency shall have the option to
terminate this Aqreement by deliverinq written notice to Freedman
and Escrow Holder. If the Aqency terminates this Agreement
pursuant to this Section, Escrow Holder shall, within 3 days
followinq receipt of the Agency's notice to terminate, cancel the
escrow.
Freedman aqrees to indemnify the Agency and agrees t�
defend and hold the Agency harmless from all Toss, cost,
liability, expense, damaqe, or other injury, includinq without
limitation, attorney fees and expenses, to the fullest extent nct
prohibited by applicabl� law, and ail other costs and expenses
incurred by reason of, or in any manner resulting from the breac�
of any warranties and�representations in this Section 11.
-e -- _�. -. ---� .� . �- �.-
The Aqency hereby represents and warrants to
Freedman tha t011owinq, it beinq expressly understood and agreed
that all such representations and warranties are to be true and
correct as oi the Closo or Escrow, all of which shall survive the
Close ot Escrow: ' �
(a) Kazardous Substances.
(i) To the best ot the Aqency's knowledge,
the Aqency Proparty is lree from Hazardous Substances (as defi�ed
in Exhibit C) and is not and has never baen in violation of any
Environmental Laws (as deiined in Exhibit C).
(ii) To the best of the Aqency's knowledge,
there are no buriad or partially buried storaqe tanks located cn
the Aqency Property.
(iii) The Agency has received no notice,
warning, notice o! violation, administrative complaint, judic�a�
complaint, or oth�r tormal or intormal notice alleqinq that
conditions on th• Aqency Property are or hava been in violation
of any Environmantal Law, or informinq the Aqency that the Agenc•;
Property is subj�ct to investiqation or inquiry reqarding
Nazardous Substancas on tha Aqency Property or the potential
violation o! any Environmental Law.
(iv� There is no monitorinq proqram required
by the EPA or any similar state aqancy concarninq the Aqency
Property..
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930913 j�r b9i-6.j�r
�ESvL�TI�N NO. 2d7
0
(v) To the best of the Agency's knowledge,
no toxic or hazardous chemicals, waste, or substances of any ��r.�
have ever been spilled, disposed of, or stored on, under, or a�
the Agency Property, whether by accident, burying, drainaqe, �r
storaqe in containers, tanks, on c�lding areas, or by any other
means.
(vi) To the best of the Agency's knowledqe,
the Aqency Property has never been used as a dump or land�ill.
(vii) The Agency has disclosed to
Freedman all information, records, and studies maintained by ��e
Aqency in connection with the Aqency concerninq Hazardous
Substances.
(b) To the best of the Aqency's knowledqe, no
condition on the Aqency Property violates any health, safety,
fire, environmental, sowage, buildinq, or other federal, state,
or local law, cod�, ordinance, or requlation.
(c) To the best of the Agency's knowledqe, the
Aqency is th� sole cwner of the Agency Property, free and clear
of all liens, claims, encumbrances, easements, covenants,
encroachments on the Agancy Property from adjacent properties,
encroachmants by improvements or veqetation on the Aqency
Property onto adjacont proporty, or riqhts o! way of any nature,
other than thosa that may appear on tho Praliminary Title Reper=.
The Aqency shall not lurther encumber the Aqancy Property or
allow tba Aqency Proparty to be further encumbered prior to t:-:e
Close ot Escrow.
(d) Any iniormation that the Aqency has deli•:e:e�
to Freedman, eithor diractly or through Freedman's agents, is
accurate and Freodman has disclosed all material facts with
respect to ths Aqoncy PropQrty.
(e) Th�re is no pendinq litiqation or, to the
best ot the Aqency's knowledqe, threatened litigation, which :�es
or will advorsoly �lftqct tha Agency Property, other than
litigation involvinq claima that are covered by insurance and °__
which Frsedman will hava no liability.
(!) To th4 best o! tha Aqoncy's knowledge, t!-:e:e
are no actions or.__proce�dings pendinq or threatened aqainst t�.e
Agency, b�tort any court or administrativa aqency in any way
connect�d with or r�la�tinq to tha Agsncy Propsrty, or affect�::�
th• �►g�ncy's �ility to lulfill al� ot its obliqations under -:-. _�
Aqreement. • �
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�Q913 j�� b93S-6.ja�
,�
(q) There are no written or oral commitments ��
or agreements with any qovernmental authority or aqency mater�-
ally and adversely affectinq the Agency Property, or any part
thereof, or any interest therein which will survive the Close �f
Escrow. The Aqency has entered into no understanding or
agreement with any taxing or assessinq authority respectinq t�e
imposition or deferment of any taxes or assessments respectir,g
the Aqency Prope�ty.
(h} Neither this Agreement nor anythinq provi�ed
to be done hereunder includinq the transfer of title to the
Aqency Property to Freedman violates or shall violate any
contract, �qreement or instrument to which the Agency is a par��.�,
or which affects the Aqency Property or any part thereof, and ��e
sale of the Aqency Property herein contemplated does not reqt:ire
the consent of any party not a signatory hereto other than the
County oi Riverside (as described below). The execution,
delivery and performance of this Aqreement has been duly and
validly authorized, and no other action by the Aqency is
requisite to the valid and binding execution, delivery, and
performance of this Aqreement by the Aqency.
(i) The Aqency is not in default of its
obligations under any contract, agreement or instrument to which
tha Aqency is a party which would adversaly affect the value cf
the Aqency Prop�rty or tha Aqency's ability to perfona its
obliqations hereund�r.
(j) To the best of the Aqency's knowledge, the:e
are no natural or artiticial conditions upon the Agency Proper=•:
or any part of the Agancy Praperty that could result in a
material and advarse chanqe in the condition of the Agency
Property.
(k) There are no mechanics', materialmen's or
similar claims or liens presently claimed or which will be
claimed aqainst tho Aq�ncy Proparty for work performed or
commenced prior to the date o�f this Agreement. The Agency ag:ees
to hold Freedman harmlass from all costs, expenses, liabilit�es,
losses, charqes and ieos, includinq without limitation attor:,e•.•s�
fees, arisinq trom or relatinq to any such lien or any similar
lien claim�d aqainst the Aqency Property and arisinq from worK
perform�d or comm�nc4d prior to the Close of Escrow except whe^
undertak�n at Fre�dman's request.
� (1) Th�re will b• no contracts, licenses,
commitmenta, or und�rtakinqs respectinq maintenance cf the Aqerc�:
Proparty or equipm�nt on the Aqency Pro�rty�. or tha performar,ce
ot services on ths Aqancy Proper�y, or ths use of the Aqency
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R:.SCL:;': I�N VC . 287
�
Property or any part of it by which Freedman would become
obliqated or liable to any person.
(m) There are no written or oral leases or con-
tractual riqht or option to lease, purchase, or otherwise enjoy
possession, riqhts or interest of any nature in and to the Aqency
Property or any part thereof, and no persons have any right of
possession tv the Aqency Property or any part the�eof. The
Aqency shall deliver possession of the Aqency P,roperty to
Freedman on the Close of Escrow free of all tenants and shall
indemnify and hold Freedman harmless from the claims of any
tenants claiminq a riqht to possession arisinq before the Close
of Escrow.
The Aqency shall notify Freedman of any facts that
would causa any ot the represontation8 cantainad in this
Aqreement on the part ot the Agoncy to bs untrue as of the close
of Escrow. Ii Fraedmar► reasonably cor�cludes�prior ta the Close
of Escrow that a lact materially.and advorsaly affects the Agency
Property, then Freedman shall hava the option to terminate this
Aqreement by deliverinq written notice to the Agency and Escro�r
Holder.
The Agency aqrees to indemniiy Freedman and agrees to
defend and hold Freedman harmless from all loss, cost, liability,
expense, damaqe, or o�hQr injury, includinq without limitation
attorneys' tees and expenses, to the fullest extent not
prohibited by applicable law, and all other costs and expenses
incurred by reason of, or in any manner resulting from the breacr.
of any warranties and rspresentations in this Section 12.
� = = � - • � t • _ � -
For th• banafit ot tho Aqency, the Aqency's obliqat:.�n
to consummate tha purchasa,of Frsedman Property shall be
continqent upon and aubject to wzitt4n notica to Escrow Holder �•r
the Aqency o! tht occurtencQ o! all ot ths following (or the
Aqency's writtan waiv�r thereoi, it boing agraed that the Aqency
can waiva any ar all such contingencies) on or before the Close
oE Escrow:
(a) That as of thQ Close of Escrow the represen-
tations and warrantiea ot Freedman contained in this Agreemen�
are all tru� and corract.
(b� Freedman's delivery oi all documents pursuar.�
to section 5(a) h�r�ol.
(c) Tha Aqency's approval, prior to the Close of
Escrow, ot all inspectiona, tests, surveys, and other studies :�
-15-
930913 jar b9aS-6.jar
�
�
be conducted by the Aqency, includinq any environmental site
assessments. The Aqency's approval of any such inspections of
the Freedman Property shall not alter or diminish Freedman�s
representations or warranties under this Aqreement, and Freed�an
acknowledqes and aqrees that the Agency is nonetheless relying on
Freedman's representations and warranties made herein, unless
such representation or warranty is specifically waived in who�e
or in part by the Agency in writinq.
(d) The Title Company's commitment to issue i�
favor of the Aqency of a CLTA Standard Coveraqe Owner's Policy of
Title Insurance with liability equal to $10,950,000.00 insuring
the Aqency's fea interest in the Freedman Property subject only
to the Freedman Property Permitted Title Exceptions.
� • - -.��. � .� t•-� -
For the benefit of Freedman, the Close of Escrow and
Dafco's obligation to consummate the acquisition of the Aqency
Property shall ba continqent upvn and subject to written notice
to Escrow Holder by Freadman or Dafco, as the case may be, of �::e
occurrence ot all of tha followinq (or Freedman's written waiver
therevi, it beinq agreed that Freedman can waive any or all such
continqencies) on or betore the Close of Escrow:
(a) That as of the Close of Escrow the represen- �
tations and warranties of the Agency contained in this Aqreemer.t
are all true and corrsct.
(b) Agency's delivery of all documents pursuar.�
to Section 5(b) hereot.
(c) Datco's approval, prior to the Close of
Escrow, of all inspections, tests, surveys, and other studies �.,
be conducted by Dalco, includinq any environmental site
asse$sments. Datco's approval ot any such inspections of the
Aqoncy Property shall not a1tQr or diminish the Agency's
representations or warranties under this Aqreement, and the
Aqency acknowlsdq�s and agrees that Dafco is nonetheless rely:�q
on the Aqancy's rapres�ntations and warranties made herein,
unless such repras�ntation or warranty is specifically waived :..
whole or in part by Datco in writinq.
-16-
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930913 j�r b98S-6.jar
RES^vL�TI�N �G. 287
(d) The Title Company's commitment to issue in
favor o! Datco of a CLTA Standard Coveraqe Owner's Policy of
Title Insurance with liability equal to the S5,950,000.00 show�:.�
Dafco's fe� interest in the Agency Property subject only to t�e
Aqency Property Permitted Title Exceptions.
15. Default.
In the event of a breach or default under this
Agreement by either Freedman or the Aqency, the non-defaulting
party shall have tho riqht to terminate this Aqreement and the
escrow for'the exahanqe of the properties by deliverinq written
notice thereot to tho dotaultinq party and to Escrow Halder, and
it the Aqency is the non-defaultinq party, the Aqency shall
thereupon promptly receiva a refund of all prior deposits, if
any, and acCrued intarest. Such termination of the escrow by a
non-delaulting party shall be without prejudice to the non-
defaultinq �arty's riqhts and remedies aqainst the defaulting
party at law or equity.
16. gotices.
All notices a
certified mail, postaqe
by personal delivary.
earlier ot (a} p�rsonal
followinq �eposit� in t
certitied or reqistara
notices shs21. bo s��t
addressed as �rovidsd
that if any party qivae notice
address, notic4s to such party
demanded in that notica:
be qiven in writinq by
eturn receipt requested,
e considered qiven upon
two (2� business days
mail, pvstage prepaid,
t requested. A copy of
Noti�es shall be
spectiva party; provided
in writinq of a chanqe of name
shall thereafter be given as
The AqQncy: Palm Desert Redevelopmant Aqency
73-510 Fred Warinq Driva
Palm Desert, Calitornia 92260
Attn: Carlos Orteqa
Copy to: Richards, watson & Gershon
333 So. Hopa St., 38th F1.
Loa Anqeles, California 90071
Attn.: Jetirey A. Rabin
Freedman: David Freedman & Company�..Inc.
Post Oifice Box 501 ,
Th�s�aal, Calitorrtia 922'�4' _ _
Attn.: Lionel Steinberq, Pre�E
-17-
930415 i+r b483-6.js�
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t:: e
a_:.
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f
nd demands shall
prepaid, and r
Notices shall b
delivery or (b}
h• United States
d, raturn receip
to Escrow Holder.
b�low for thQ re
ESCROW hOLDER: Escrow Connection
1111 East Tahquitz-McCallum Way
Palm Springs, California 92262
Attn.: Kathy Kleindienst, Escrow Officer
(619) 327-8566
17. Broker's Commissions.
Aqency represents and warrants to Freedman that
the Aqency has used no broker, aqent, finder or other person �z
connection with the transactions contemplated hereby to whom a
brokeraqe or other commission or fee may be payable, other than
West World Properties. Freedman represents and warrants to the
Aqency that Freedman has used no broker, aqent, finder or other
person in connection with the transactions contemplated hereby t�
whom a brokerage or other commission or fee may be payable, other
than West World Properties. Freedman shall pay the commission,
if any, due to West World Properties. Each party indemnifies and
aqrees to defend and hold the other harmless from any claims
resultinq from any breach by the indemnifyinq party of the
warranties, representations and covenants in this Section.
-:�- • �- t. •�-
Each party aqrees to execute Escrow Holder's such other �
reasonable standard inatructions as may ba necessary or proper :n
ordar to consummata tha transaction contemplated by this
Aqreemant; provided, however, in the event oi a conflict between
the terms hereot and the terms of such standard instructions, =^e
terms hereof shall control.
19. Amendments.
Any amendments to this Aqreement
only. when duly executad by Freedman and the
with Escrow Hold�r. .
• � - -��. -
shall be effective
Aqency and deposited
(a) Counteruarts. This Aqreement may be executed
simultaneously or in counterparts, each of which shall be deemed
an oriqinal, but all o! which together shall constitute one and
the same Aqraemont.
(b) ADDlicable Law. This Aqreement shall be con-
stru�d and iAt�rpr�t�d und�r, and qov�rned and entorced accordir.q
to th� laws o! th• Stato of California.
930413 j�r b9aS-b.j��
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�ESCi,�.:T=JN �i�:. 2.87
(c) Entire Acreeme�r, This Agreement supersedes
any prior aqreement, oral or written, and toqether with the
Exhibits, it any, hereto and any agreements delivered pursuant
hereto, contains the entire aqreement between the Agency and
Freedman on the subject matter hereof. No subsequent aqreement,
representation or promise made by either party hereto, or by or
to any employee, otficer, agent or representative of either
party, shall be of any etfect unless it is in writing and
executed by the party to be bound thereby. No person is
authorized to makQ, and by execution hereof the Aqency and
Freedman acknowledge that no person has made, any representation,
warranty, quaranty or promise except as sat forth herein; and no
aqreemant, statem�nt, rspresontation or promise made by any such
person which is not contained herein shall be valid or binding on
the Aqency or Freedman.
(d) Further pocuments. Each party will, wherever
and as often as it shall b� requested by the other party,
execute, acknowledqe and deliver, or cause to be executed,
acknowledqed and deliver�d, such further instruments and docu-
ments, includinq escrow instzuctions, as may reasonably be neces-
sary in order to complete the sale, conveyance and transfer
herein provided and to do any and all other acts and to execute,
acknowledqa and deliver any and all documents as may be requested
in order to carry out the intent and purposa of this Aqreement.
(s) Successors and Assians. This Aqreement sha1�
ba bindinq upon and inuro to th4 beneiit of the heirs, executors,
administrators, successors and assiqns of the parties hereto.
(t) Survival. The provisions hereof shall not
terminate but rath�r shall survive any conveyance hereunder ar.d
the delivery of all consideration.
(q) Exhibits. All exhibits attached hereto, :�
any, and/or r4ierred to in this Aqreement are incorporated here:.n
as thouqh sat torth in full.
(h} R�medies Not Exclusive and Waivers. No
remedy cont�rr�d by any ot th� spacitic provisions of this
Aqreement i� int�ndsd to b• exclusivs of any other remedy and
each and ev�ry r�m�dy shall be cumulative and sha�l i�e in
addition to avary othsr remedy qiven hareundar or now or here-
after existinq at latr or in equity or by statuta or otherwise.
The election o! any ons or more remedies shall not constitute a
waiver ot tha riqht to pursue other availabl• r�mediea.
(i� Joint and Several Liabilitv. 'fhe obligat:�r:s
ot Datco, Stainb�rq and Ulman shall be joint and several.
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(i) Construction. This Aqreement, includir.g
all exhibits attached hereto and by this reference incorporated
herein, shall be construed as a whole and in accordance with �ts
fair meaninq. The parties aqree that each pazty and its counsel
have reviewed and revised this Agreement and that any rule of
construction to the etrect that ambiquities are to be resolveci
aqainst the draltinq party shall not apply in the interpretation
of this Aqreement or any amendments or exhibits thereto.
(�i) Irtter�retation. In this Agreement the
neuter qender includes the feminine and masculine, and singular
number includes tha plural, and the words "person" and "party"
include corporatiar, partnership, firm, trust, or association
whenever the context�so requires.
(iii) Recitals and Cagtions. The recitals
and captions of tha sections and subsections of this Aqreement
are•for convenience and reference only, and the words contained
therein shall in no way be held to explain, modify, amplify or
aid in the interpretation, construction or meaning of the pro-
visions of this Aqreement.
(k) Attornevs' Fees. It either party hereto
incurs attorneys' fees in order to enforce, defend or interpret .
any of the terms, provisions or conditions of this Aqreement cr
because of a br4ach o! this Aqreement by the other party, the
prevailinq party, whetha= by suit, neqotiation, arbitration or
settlement shall be entitled to recover reasonable attorneys'
fees from tha other party.
(1) AD�licable Law. This Aqreement shall be
construed and interpreted under, and qoverned and enforced
accordinq to th• laws ot the State of California.
' (m) Relocation Assistance. Freedman hereby
waives and reloasas th• Aqancy�from any riqht which it may have
to relocation assistanc• undar the Uniform Relocation Assistance
and Real Prop�rty Acquisition Policies Act ot 1970 (42 U.S.c.
4601, et s�q.� or und�r Title 1, Division 7, Chapter 1 of the
Government Codo o! th� State of Calitornia (Section 7260, et
seq.). Freedsan h�reby acknowledqes that the Agency has advised
Freedman o!-th� possibls availability ot such riqhts to Freedman
and tho waiv�= oi.such riqhts by Freedman herein s�t forth is
free and vo�untarY. Freedman hereby releases the Agency from a::
claims tor s�v�ranc• damaqes, loss of qood will, just compen-
sation, prs-ccndamnaticn damaqes, and intereat, costs, litiqat:on
expansss and mttorn�ys' tees arisinq trom the matters described
in thia Section. .
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930915 j�r b9aS-6.j��
:�SCL��TIJ^i NC. �S i
IN WZTNESS WHEREOF, the parties have caused this Agree:*,er.�
to be executed as of the date first above written.
MORTON 8. ULMAN
ANDREE ULMAN
LIONEL STEINBERG
DAVZD FREEDMAN & CO., INC.
By:
Lionel Steinberg, Pres.
"Freedman"
PALM DESERT REDEVEI�PMENT AGENCY, a
public body, corporate and politic
ey
�► tV �,�.� �� �/-'v ./
, Chair:�an
A"�tes� • � �
�/ L� . ,
�.� /_/� t��
/ - , j , Secretary
�i
"Aqency"
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930913 iar b48s•6.ja�
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EXHIBIT "A"
LEGAL DESCRIPTIONS OF FREEDMAN PROPERTY
DAFCO/III.M]►N P1IRCEL
(PROPOSED COOK STREET AND GERALD FORD DRIVE PA.RCEL
WITHIN SECTIONS 33 & 34, T4S, R6E, S.B.B. & M.)
That certain parcel of land situated in the City of
Palm Desert, County of Riverside, State of California, being
portions of the southwest and northwest one-quarters of
Section 34, the northeast one-quarter of Section 33, Township �
South, Range 6 East, S.H.B. & M., and all of Parcel "C" descr�bed
in a document recorded January 30, 1991 as Znstrument No. 0344a3
of Official Records, records of Riverside County, described as
follows:
BEGINNING at the southerly terminus of that certain
course in the westerly line of said Parcel "C"
described as "North O1' 12' 29" East 2619.53 feet",
said point beinq on the northerly riqht-of-way of Frank
Sinatra Drive, 88.00 feet wide, per a docwaent recorded
Juna 4, 1992 as Instrument No. 51897 of Ofiicial
Racords; thence alonq said westerly line of Parcel "C" .
North O1' 12' 29" East 2619.53 feet to the northerly
terminus tharaof; thence continuinq alonq the norther:y
prolonqation thereof North O1' 12' 29" East 566.16
feet; thenca South 88' 47' 31" East 884.86 feet to t`:e
beqinninq o! a tangent curve concave southwesterly and
havinq a radius ot 1000.00 feet; thence along said
curve southeasterly 597.79 feet through a central angle
of 34' 15' 04" to a tanqent intersection with a line
parallal with and 550.00 feet southwesterly of the
southerly line ot the Southern Pacific Railroad Right-
of-Way; thencs tangent from said curve and along said
parallel lina South 54' 32' 27�� East 1842.00 feet to
tho beqinninq of a tangent curve concave southwester:f
and havinq a radius of 1000.00 feet; thence along said
curve southeasterly 948.32 feet through a central anq:e
ot 54' 20' 05" to a tangent intersection with the east
line of tha southwest one-quarter of Section 34,
Township 4 South, Ranqe 6 East, S.B.B. & M.; thence
a-lonq said east line of section 34 South o0' 12� 22„
� East 1092.00 feat to said northerly riqht-of-way line
�o! Frank 3inatra Drive; thence alonq said northerly
riqht-�oi-way line South 89' S0' 37" Wast 2652.74 feet
and South 89' 49' S9" West 782.37 feet to the POINT ^F
' ,"SEGINN.YNG�.
Containinq 206.837 Acres, more or less. ,,�
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930910 P6�►02-00001 sa� 0760e6s 0
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IN WITNESS WHEREOF, the parties have caused this Agreement
to be executed as of the date first above written. �� !-
t -, : � � : �-d �"•. � �S!�vy1a.,^-� �- � �"�'
L1 Y.l ,i� r►..n v►�- r���/ �"
MfJRTON B. ULMAN d� � f�
G�-�,d�p-e,� ��� "� ��
� ��;�
ANDREE UI�+lAN
� �1 ��j, �r .
�
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DAVID FREEDMAN & CO., INC.
By.
• Lion e , res.
� � �,�� '
� � .
"Freedman"
PALM DESERT REDEVELOPMENT AGENCY, a
public body, corporate and politic
By
, Chairman
Attest:
, Secretary
"Agency"
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930913 jar b985-6.jar
:�scL,.Tro�r �o. �a�
SUBJECT TO all Covenants, Riqhts, Rights-of-way and
Easements of Record.
930910 06402-00001 sas OT60b68 0 2 +
EXHIBIT "A"
LEGAL DESCRIPTION OF FREEDMAN PROPERTY
COOK STREET EXTENSION
Those certain parcels of land situated in the City of
Palm Desert, County of Riverside, State of California, being a
portion of the northeast one-quarter of Section 33, Township 4
South, Ranqe 6 East, S.B.H. & M. described as follows:
parcel 1
A strip of land of variable width, the reference line
is described as follows:
BEGINNING at the northerly terminus of that certain
coursa in the east line of Parcel "B" of Lot Line
Adjustment No. P.M.W. 90-16 recorded January 3Q, 1991
as Instrumant No. 034443 of Ofticial Records af�said
Riverside County shown as North 01'.12' 29" East
2663.54 teat", said northerly terminus beinq
hareinafter referred to as Point "A"; thence continuing
alonq th� northarly prolonqation of said east line of
Parcel "8" North O1' 12' 29" East 566.16 feet to a
point hareinaiter refQrred to as Point "B"; thence
continuinq North 01' 12' 29" East 236.00 feet to a
point hareinattar reterred to as Point "C"; thence
continuinq North 01' 12' 29" East 523.10 feet to the
beqinninq ot a tanqent curve concave southeasterly ar.a
havinq a radius ot 1400.00 ieet; thence along said
curve northaasterly 4.98 feet throuqh a central ang�e
ot 00' 12' 14" to a point in the north line of the
south ona-halt of said northeast one-quarter of
Section 33 Township 4 South, Ranga 6 East, S.B.B. &�!.,
said point b4inq hereinafter referred to as Point '����.
Said strip ot land shall be 67.00 feet wide, lying
67.00 fast westerly of said reference line between
Points "�i" and "H"; 142.00 fest wide, lyinq 75.0o Fee�
w�st�rly and 67.00 feet eastarly of said reference :::-.e
b�tw��n Points "H" and "C"; 134.00 feat wide, lyinq
67.00 t��t w�starly and eastarly of said reference :::-.e
b�tw��n Points "C" and "D".
Said strip o! land shall be lenqthened or shortened s�
as to terminats south�rly in th� south line of said
northaast on�-quarter of Saction 33 and northerly �n
said north line of the south one-half of the northeas_
ono-quart�r o! Section 33.
Containinq 3.266 Acres, more or less.
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A strip of land, 134.00 feet wide, the centerline cf
which is dascribed as follows:
BEGINNZNG at Point "0" hereinbefore described, said
point beinq on a non-tanqent curve concave
southeasterly and having a radius of 1400.0o feet, a
radial bearinq of said curve from said point bears
South 88' 35' 17" East; thence alonq said curve
northeasterly 621.30 feet throuqh a central anqle of
25' 25' 36"; thence tanqent from said curve North
26' 50' 19" East 21.11 feet to a point on the southerls
line of the Southern Pacific Railroad Right-of-way.
Said strip of land shall be lengthened or shortened so
as to terminate southerly in the north line of the
south one-half of the northeast one-quarter of
Section 33 and northerly in the southerly line of t::e
Southern Paciiic Railroad Riqht-of-Way.
Containinq 1.976 Acres, more or less.
Parcel 3
C�i4SENCING at Point "B", h�reinbetore described in
Parcal 1; thanca South SS' 4?' 31" East 67.00 feet �� a
point in ths Qast line of said Parcel 1, said point
beinq the TRUE POINT OF BEGINNING; thence continuing
South 88' 4?' 31" East 169.00 feat; thence North
O1' 12' 29" East 75.00 fe�t; thence North 88' 47� 3:��
Wast 135.00 teet; thence North 43' 47' 31" West 48.�:
feet to said Qast line of said Parcel 1; thence alc��
said east lin• of Parcel 1 South O1' 12' 29" West
109.00 lsat to the TRUE POINT OF BEGINNING.
Containinq 0.304 Acres, more or less.
Par�
COIrIIrlENCING at Point "B" harQinb�iore described in
Parc�l 1; thence North 88' 47' 31" West 67.00 feet ::. 3
point in ths west line or said Paresl 1, said point
b�inq th� Tl2UL POINT OF BEGINNING; th�nce along said
w��t lin� o! Parcel 1 South 01• 12' 29" west 1o9.Qo
te�t; th�11C• North 43' 47' 31" W�st 48.08 feet; ther,ce
North 88' 47' 31" Wast 135.00 l��t; thence North
01• 12' Z9" Ea�t 13?.00 i��t; th�nc• South 88' 47' ::"
East 122.00 t�st; th�nc• North 46' 12' 29" East 55.:5
l��t to aaid v�at line oi Parc41 1; th�nce alonq sa�d
w�st lin� o! Parcel 1 South 01• 12' 29" west loi.00 ^
930910 P6i02-00001 sas 0�60td�! 0 —� �
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feet and South 88' 47' 31" East 8.00 feet to the TRL'E
POINT OF BEGINNING.
Containinq 0.551 Acres, more or less.
0
COI�IIKENCING at Point "C" hereinbefare descri�bed in
Parcel 1; thence South 88' 47' 31" East fi7.00 feet �� a
point in the easterly line of said Parcel 1, said point
beinq tha TRUE POINT OF BEGINNING; thence alonq said
east line throuqh the followinq courses: North
O1' 12! 29" East 523.10 fset to the beqinning of a
tangeat curve concave southeasterly and havinq a radius
of 1333.00 feet; thence alonq said curve northeasterly
6.51 feet_�hro�gh a central anqle of 00' 16' 47" to a
point in tha north line of the south one-half of the
northaas� one-quarter of Section 33, Township 4 Sout:�,
Ranga 6 East S.B.B. & M.; thence alonq said north line
North 89' 53' 56" East 53.80 feet to a point on a non-
tanqent curva concave southeasterly and having a radius
o! 1520.00 feat, a radial line of said curve from said
point bears South 82' 42' 48" East; thence along said
curve southarly 7.78 feet throuqh a central anqle of
00• 17' 36"; thence tanqent from said curve South -
06' S9' 36" Wost 525.78 ia4t to tha TRUE POINT OF
HEGZNNING.
Containinq 0.327 Acres, more or less.
Parcel 6
COI�ENCING at Point "C" hereinbafore described in
Paresl 1; thence North 88' 47� 31" West 75.00 feet �� a
point in tha w�sterly, line of said Parcel 1, said poin-.
beinq th• TRUE POIN'I� OF BEGINNZNG; thence along said
w�starly lin� throuqh the followinq courses: South
88' 47' 31" East 8.00 feet; thence North 01' 12' 29"
Ea�t 523.10 leat to the beqinninq of a tangent curve
concave south�asterly and havinq a radius of 1467.00
fs�t; th�nc• alonq said curve northeasterly 3.45 feec
throuqh a c�ntral anqle oi 00• 08' 05" to a point in
th� north lin� oi the south ons-half of the northeasc
on�-quart�r ot Section 33, Township 4 South, Ranqe 5
East 8.8.8. i M.s th�nc� alonq aaid north line South
89' S3' S6" W�st 53.21 fa�t to a point on a non-tanqent
curv� concav� southeaaterly and havinq a radius of
1360.00 la�t, a radial lino of said curve from said
point b4ars South 86' 23' OS" East; thence alonq sa�d
cury southerly 2.24 fest throuqh a central anqle o:
�
00• 05' 40"; thance tanq�nt trom said curve south �
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930910 06�.02-00001 �ss 0760l6� 0 — 5—
�S��LCiTI��1 ti0. 287
o3' 42' 32" East 525.04 feet to the TRUE POINT OF
BEGINNING.
Containinq 0.370 Acres, more or less.
Parcel 7
COI�IENCING at Point "D" hereinbefore described in
Parcel 1, said point being in the north line of the
south one-halt of the northeast one-quarter of
Section 33, To�rnship 4 South, Ranqe 6 East,
S.H.B. & M.; thence alonq said north line North
89' 53' 56" East 67.02 fest to a point in the easter�y
line o! Parcel 2 hareinbQfore described, said point
also bsing on a non-tangent curve concave southeasterl�
and havinq a radius ot 1333.00 teet, a radial line of
said curve irom said point bears South 88• 30' 44"
East, said point beinq the TRUE POINT OF HEGINNING;
thence alonq said easterly line of Parcel 2
northsaatsrly 589.79 feet throuqh a central angle of
25' 21' 03"; thence tanqent from said curve North
26' 50' 19" East 10.96 feet to the southerly line of
the Southern Pacitic Railroad Riqht-of-Way; thence
alonq said�southerly line South 54• 32' 2�" East go.:i
teet to a point on a non-tanqent curve concave
southeasterly and havinq a radius of 1520.0o feet, a
radial lin• ot� aaid curve from said point bears South
61' S0' 14" East; thenc� alonq said curve southwesterl•.
553.82 ls�t throuqh a central anqle of 20' Sz' 34�� t�
said north line oi the south one-half of the northeas�
ona-quart�r o� Section 33; thence alonq said north '_:-:e
South 89' 53' S6" West 53.80 feet to the TRUE POINT �:
BEGINNING.
Containinq o.994 Acres, more or less.
F���
CO1�II�IENCING at Point "0" hereinbefore described in
Parc�l 1, said point beinq on the north line of the
south on�-hal! o! ths northeast one-quarter of
S�ction 33, Township 4 South, Ranqe 6 East,
S.B.B. i M.; th�nce alonq said north lina South
89' S3' S6" W�st 67.03 ta�t to a point in the wester:•t
Zin� o! Parcel 2 hereinbefore daacribed, said point
alao bsinq on a non-tanqant curve concave southeaster:•;
and havinq a radius ot 1467.0o faat, a radial line of
said curv� lrom �aid point bsars South 88' 39' 2b"
�East, said point boinq the TRUE POINT OF BEGINNING;
th�nc• a�ong said wasterly line ot Parc�l 2
north�asterly 652.�0 feet throuqh a central angle of
25' 29' 45a; thance tanqent from said curve North
930910 P6i02•00001 ta� 0�60�6� 0
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26' 50' 19" East 31.27 feet to the southerly line of
the Southern Pacific Railroad Riqht-of-way; thence
along said southerly line North 54• 32' 27" west 93.19
teet to a point on a non-tanqent curve concave
southeasterly and havinq a radius of 1360.00 feet, a
radial line of said curve from said point bears South
62' 40' 33" East; thence alonq said curve southerly
734.37 feet throuqh a central angle of 30' S6' 19" to
said north line of the south one-half of the northeast
one-quarter of Section 33, thence along said north =ine
North 89' S3' S6" East 53.21 feet to the TRUE POINT OF
BEGINNING.
Containinq 1.250 Acres, more or less.
SUBJECT TO all Covenants, Riqhts, Rights-of-way and
Eaaements of Record.
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9309iG ib�►02'C0001 sii G%60e6d 0 — � —
2:.S��L:: i'iCN '�10. �'37
EXHIHIT B
LEGAL DESCRIPTZON OF AGENCY PROPERTY
PARCEL 1:
That portion of the Southwest quarter of Section 28, Tvwnship 4
South, Ranqe 6 East, San Bernardino Base and Meridian, in the
City of Palm Desert, accordinq to the Official Plat thereof,
which lies Southerly of the riqht of way of the Southern Paci:�c
Railroad Company;
EXCEPT 1/16th ot all coal, oil, gas and other mineral deposits in
said lands, as resarved in Patent from thQ State of California to
Ruth A. Clarke, recorded october 20, 1926 in Book 9 paqe 178, of
Patents, Records of Riverside County, California;
ALSO EXCEPT a one-half interast in and to any and all oil and
mineral riqhts, as reserved in deed from Ralph E. wyer, et a1, t�
John J. Kovacavic3�� and-8averly Ellen Kovacevich, husband and
wife, recorded Auqust 2S, 1955. in Book 1785 page 467 of official
Records oi Riveraida County; California.
PARCEL 2: ---•
That portion o! tha Southeast quarter of
South, Range 6 East, San Barnardino Bass
City o! Palm Oesert, as shown by United
which lies Southorly ot tha riqht of way
Railroad Company.
PARCEL 3:
Section 28, Township 4
and Meridian, in the
States Government Sur✓ey
of the Southern Paci�ic
That portion of th4 Northwast Quarter of section 33, Township
South, Range 6 East, mora particularly described as follows:
Beqinninq at th� Northw�st corner ot th• Northwest quarter of
said SQction 33; th�nca along the North line of said Section JJ,
North 89'55'S5" East 2,647.98 feet; then South 00'04'07" East
329.01 fe�t; thanc�, alonq a lina parallel to said North line,
South 89'S5'SS" W�st 2,647.83 feet to the West line of said
Section 33; Th�nce, alonq said west line, North o0•05�40�� wesc
329.01 tast to th� Point of Baginninq.
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930913 j�� b+D�S•6.j�r �
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EXHIBIT C
CERTAIN DEFINITIONS
Environm�atal LaMs means all federal, state, local, or �
municipal laws, rules, ozders, requlations, statutes, ordinances,
codes, decrees, or requirements of any government authority
requlatinq, relatinq to, or imposinq liability or standards cf
conduct concerninq any Hazardous Substance (as later defined), �r
pertaining to occupational health or industrial hygiene (and cn�y
to the extent that the occupational health or industrial hygier.e
laws, ordinances, or requlations relate to Hazardous Substances
on, under, or about the Property), occupational or environmental
conditions on, under, or about the Property, as now or may at any
later time be in effect, includinq without limitation, the
Comprehensive Environmental Response, Compensation and Liability
Act of 1980 (CERCLA) L42 USCS 64 9601 et sea.l; the Resource
Conservaticn and Recovery Act of 1976 (RCRA) �42 USCS §§ 6901 et
sec.1; the Clean Water Act, also known as the Federal Water
Pollution Control Act (FWPCA) f33 USCS �4 1251 et sec.1; tiie
Toxic Substances Control Act (TSCA) f15 USCS 66 2601 et seQ.';
the Httzardous Materials Transportation Act (HIKTAj [49 USCS 6§
1801 et �gq�; the Insecticide, Funqicide, Rodenticide Act y%
USCS 5S 136 et sec.l; the Superfund Amendments and
ReauthoriZation Act f42 USCS 66 6901 et sec.l; the Clean Air Act
L42 USCS §S 7401 et seq.l; ths Safe Drinking Water Act j,42 LTSCS �
6S 300! et sac.l; th� Solid Waste Disposal Act L42 USCS 44 6901
et sea.l; th� Surtace Mininq Control and Reclamation Act L30 �.'s�s
g�f 1201 et sea.l; the Em�rqency Planninq and Community Right t�
Know Act [42 USCS �S 11001 et sea.l; the Occupational Safety a:;d
Health Act j29 USCS 66 655 and 6571; the California Underqrour.�
Storage of Hazardous Substances Act LH & S C 6& 25280 et sea.�:
the California Hazardous Substances Account Act fH & S C 6§ ����:�
et seq.l; th4 California Hazardous Wasta Control Act fH & S�. aa
25100 et seq.l; tha Calitornia Safe Drinkinq Water and Toxic
Enforcement Act jH & S C 4§ 24249.5 et sec.l; the Porter-Coloq^e
Water Quality Act fWat C 4� 13000 et sec.l toqether with any
amendments ot or requlations promulqated under the statutes c;-e•�
above and any oth�r ledoral, state, or local law, statute,
ordinanca, or r�qulation now in eftect or later enacted that
pertains to occupational health or industrial hyqiene, and oni•:
to the extsnt that th� occupational health or industrial hygiene
laws, ordinances, or raqulations relate to Hazardous Substances
on, undor, or about tho Property, or the requlation or protecc:�r
o� the environm�nt, includinq ambient air, soil, soil vapor,
qroundwat�r, surtac• water, or land us�.
Hasudoua 8ubstsna�s includes without limitation:
(a) Thosa substancas included within tha detinitions of
hazardous substanc�, hazardous waste, hazardous material, tox:�
substanco, solid waat�, or pollutant or contaminant in CERCI.�,
RCRA, TSCA, i�lTA, or under any other Environmsntal Law; .
,�.
RES�L�TION �Q. 287
(b) Those substances listed in the United States Depart�ent of
Transportation (DOT) Table j49 CFR 172.1011, or by the
Environmental Protection Aqency (EPA), ar any successor agency,
as hazardous substances f40 CFR Part 3021;
(c) Other substances, materials, and wastes that are or become
requlated or classified as hazardous or toxic under federal,
state, or local laws or requlations; and
(d) A,ny material, waste, or substance that is
(i) a petroleum or refined petroleum product,
(ii) asbestos,
(iii) polychlorinated biphenyl,
(iv� desiqnated as a hazardous substance pursuant to 33
USCS § I321 or listed pursuant tc 33 USCS § 1317,
(v) a flammable explosive, or
(vi) a radioactivo material.
930913 l�r �•b.ja�
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GENERAL �40vi5�C'v5
- .- �s : T.�s esc•ow na.� no� oe�n camoi�eo .�in �r�or •o re ]�ie eiaieo = - - -' i-, r, .�s : -� . . . � .
ess . .. _ exrow as soon aa •.n� cana,i,ona. �uw� aa �o i�ma nava oeen _omo�,ec � � .,.css � - -- �- - .• ... . - .
se ^-a,e =e_ .�a �oon rou no� �o coni�nue procesa�np
, �:� ca,��ee •�.��n�r aq�ee. io�niiy ana se�erauv io aav on OemanC as wen aa io ��aemn��v aro ^��a ,c� ^a:T. ess _ .:��a �
.a��aqes :uaqe�+e��s. aiio.�eye �ees. aaoenses. obi�qa��one ana ��aa�i�i�es oi e�e�v +��o or ^a,,,,e s..�ie�ea c� �c_•�^.�.: _: .. . -
a•.s.�g ou� o� Ihi3 Q7CfOW �OV ]�711 ��v� a iusi ��C� On I�e O�ODQrIY J�O Oi0ff3 �CIQ �n in�s escro+, �or s�cn co�^oensa: �^ a•: e_.-...
e�e�� ���e escrow �s �ot comp�eieC. �he ou���� hereio ia�nuv ana s��er�u� �q�ee �o oar rour ,,s,:a� an�e� ai�on ee "-••s esc :.. - s. ._
a�� c•c��+siances oe :a�ceuea or resunaao. �or sn�u any co�s�aeni�o� con�evea io escrow :e re�.�r�ea ;o ar.� car:, .,. ;,,,� ;�
�r aTe^ameni ne�eio e.ecuiea oy ai� parii�e io eecrow.
7 'o oay o� asm�no. +�n��nar or not ih�a �acrow uos��, i�Y c�ar9a� inCu�rlC DY YOu On pu� :lndil �r.d vo:,r „s,:a� BSC'J+� 'B25 d"= :"3 ;
< <eee ana cnupe� �,�u De ea�o u lonow�: �a� Br Buver—ior �ecorainp asea. ����nq �r ac��ow�e�q�ng ana �ecor r- .;,,s : � a-. :. --
-e�is �ecessary o� n�s oari. �entlers aasumpi�on or cnanQ� ol recoras ���. b�nsl�c�ary s siaiemem �ee ane '�r escrow :ee a�c �?:_ .—.
��! e poi�tv. d�msn0e. Cocum�niary Vanet�r iax on OeeO. IilnnQ m, acKnawi�Oqinq �ntl recorCmq any tlocument� neceseuY :�^. ^ o.a a�: .
escrow 'ee .
5 use a�� i�tld comOinY 0� y0ur Wual IOrm �nC �naan aaias �na itrma on �netrumenis �� e+ecu;ea .ncomp�eie n e�cn �an,.,, a•� :. ....
-se�t C^�S =JmP�Y wiln Our wrilt�R in3�ruCliOn7.
5 _�, aro w��o��zea io aei��u coo�e� oI BII �nS��UCIiO�S ]�tl C:OSi�Q 7litlTerlU �n In�! eSGrow 10 :�'Q ��dl Q5�21! ��^.K2' 3'J 7' 3;°' a-�
e�ce�^e�aer s+pent, burenesiiu ai�om�y, FMA Or VA, u00� Ih�u r�du�si. _
T �ou i�R �Ot t0 0� tO�CtMld w�1h 1�� 10110w�n0' 1ti1 Tns p�v�np o� a�y a�ec+oeures npu��eC �y :eee�ai �� S,a�e •_aw sce: c n. -._.-,
Fe^,�iai�on Z. w�iC� m�y Of S�OWC �/�d bQl� Qivl� OU�7�0! 0� in�� aecrow i2) 7�e ellstl ol IOn�nq O�d��a�ce!
9 T^e �o��cy o� ��ue inwranu io o� aairv�roa i�roupn ih�s eacrow w�U 0� �sau�tl suDieci io e:ceo��ons a�a c�r��;.c^s ;e :. - -
c.mCi�y 3 D����ed �Oim, wniC� lxCED��On7 7�C COnCitiOn! �« �ere0y apprOvetl. NO C��II�I or seCut,iY �nieresi searc❑ s'� 'e '^'a--e^ :- J=� �,
ce�eo�ai o•ooa��v. �I sny, oe�rp iransier�aC tnrouqn im� eacrow 8�ii ol Saie �I any roawntl. �s io oe tlei��ereo :.�reco�cec a;V ^e = csz :�<.: ..
9 v.;� Snan n+akt Oarmenl io or lor. ar Oel�ver aocumenls io or �or �nY Oarly O�ly d m your exclus�re iu0ge�*ont sucn ,^ar^'e-� ::r .. -,
:e Taae ���noui yow �ncurnnq �ny !�aCditv ana you snau na�e no oo��Qat�on io par �ny COlt3 Or :har�E! 'or !�e acc��ni =� 3-• -a .�
e,:eo� ,.;m �untls ne�d �n eecrow ne s eontl�uon io c'ose ol eurow ya� mar rsCwro mai a�i �n�eres�eC d#n�ee aco�o.e � �. � .
Te�ts a�o ��s��umanis io os aei��areC nereunoer Au a�sbursements an io Ds maC� DY Your.�nacx ana rou are �o ce��.e� a� c-�e:• s,� .. .
�+e��s �o �^e ou�iee emnie0 �nera�o vou mav uee requ�ar ma�� ro ine oarti��� respec�wa �oar�sse� s�ewn nere�� Qeccrca� on �i 3-• -s ..-,
:e�,•e�ea i'+rou9h ;hu escraw. d n�csSasry ar prooa� �n tne �ewanc� o� �h� Poucy of une msur�nu cau�0 !w. �s aui�oncea ics.,_-� -. ---
QeCOrOlr to m�d r�corGlO �n�trum�nis io tn� parue� eni�uea �nereio. ..
�0 ErlCu1Q O� bfh�ll OI Ih� p�rh�f �fr�l0 �Orm �!liQnTfnl! 0� InlQt�il �n any msuranc� pa�cy io o� aes�9^� �o Bare� "2�t�n d"� '�� � 3' : 5 3 ; �
aSs�q��*+enif u0on CIOf� Ot �SCtOw IQ filll�r Ihe �9dM Of th� in3uranc� com0�ny, si your oolron. reCuast�nQ I�! �nSWlr t� �:^Ser' "... �
ir�n3��r, !O m�k� fuCll Ot��/ iGGlt�On! Or CO�r��tiOn3 lD�Ci��C711y redu�rb, �I any, �ntl to IOrwarO such poi�c:se t0 �ha ;,ari�es e�: �_. ...
E■ecut�on antl �orwaroinp ol euth lorm as��p�menta are your onry �a300�3�Od�IN! �� CO�n�CLOn wilh if1Y mSu���C! pO�iG�3 _d ��, ,' S
exrow.
i i il conn�cunp d�m�nCs u� m�Qfo� �otle�7 e�rv�C upon YOu w�lh issp�tt to Ih�a �aCrOw, I�e par�u� nereto apree inai �ou s^a�� '^ ^�� �^� :
�e�use �o comply witl+ �ny fueh C�slm or O�manG �n0 �o w�lnnoitl anC �toD ��� �wtnar D�oe�o0�nq� �n anC oeriormance oi �.me es:��« s: -- ;�s
sucn Cis�q��emenl snail cOni�nu�: in io Oo�nq you jn�il n01 D� Or bfCom� iiabl� lor asm�q�e or �nisresi ta con��nue so io �eira�� a�� •�• .<- �. . i
aci unid ;al Tn� riqhl3 of ih� a0v�rf� el��manb haw DNn lin�ily �Cluaieai�C m a wurt assuminfl �na n�vmq wnsa�ct�on oi �^e �a�• es �- ., �
:re mon�r. PaO��f. snC Proputy InvOW�O n��n Or all�etW h�r�by: anWOr101 all O�Il�i�ne�s enaU har� D1an �GI�St�O Oy muiva� aq�ee—a a-:
you snan nav� b��n no�illb Ih�r�ol in wnllnp �ipnW by all ol tn� Oufa+a im���st�C.
in in� �itunaur�. You maY III� a�wt In m���plpd�r ipr Oa�araiory �uaq�rt+�nt tor tn� purpos� ol nav�nq ine reeo�cuve nqn�� o� ��e = a.�,^ s �
a0jutliut�0, a�0 d�pW11 �rflh 1�� Court all dotum�n�a �n0 Droputy Mltl n�r�ul+0u anC th� u�Ov�ipnW io�miy antl fevenur oq•ee �a :a• a
CO3t7. �:O�n71f �ntl i�ifOMDI� �ItO�n�y'7 I��f �nCurrb py YOu. Ih� �mpuRl Ih���01 10 N IItfO �nG i IuUQem�nt Ih�r�Ot i0 0! � e�:e�e�: :. -�`
COUfI i� ]UCh �W�.
�Y. vou aei n�r�unaN as a O�oosuuY oroy ana u� no� rqDOnsibl� or uabl� m�ny msnn�r wn���v�r lor t�+� ��n�u�ncy. cor�e_�-ees ;-. .
��1! Ot v���Glly 01 �f1y if171fUTMt O�pOf11�0 w��N y0U h�flUROlI. 01 wi111 rypKt t0 �MT M�YfCulian Of Simf. 0� It+� itlQnlilv �u�^c'"r : '
ot �nY P�rson �:�euunq a O�posilinp tn� aam�. You u� n�i�h�r a Oany �o nar boun0 Oy �ay �qn�rn�n� wn�en may 0� C�Oo��ieC u�ae• e. : e�+.
by, or �ri�� put of thl� ��CrOw.
�3. vou 7MII haw no rNpOn�10111ty ol n011lylnq a�y al ln� Oartl�! lo Ihla �serow o1 any sa4. rs]ala. �oan. �:cn�np�. 0� otnei •.a^sac• -' - .
�nq any pro0�rty hrt�n OHerIWO W ol �ny prolU r��tu�0 bY �^Y oaaon. hrm or corporauo� IOroker. �p�nt anC Dan��s to in�e a�c. �� --e� +s ::
�nCiuG�d1 �� COnMCt10� Ih���wllb, rparONst o1 ins i�et tnst suen tnnaaet�oMs1 may o� nanai�C Dy y0u �� �hi! �lCrow o� n a,� .: "e� !s' -•
prOr�OlC SUCh litt! CO nOt O��vMt yOYf COfn01NnC� wi1R lh�f� InliruCiiOnf.
� i. rou �nail nol b� Ilabl� lor �ny pror ot �udp�m�m or lor �nY ac� Can� or om�l�ed Dy you m pooC �a�ih, or ior �ny m�siaKe oi �a: �: n. -..
your Own w�lllul mi�COfWutl. �nd y0U �luq �W� no Cutl�t lo �nyon� ��C�DI t�Of� liQmnq t��7� in3truC1i0ns.
1 S. TheS� inS1�UC�1011/ T�y D� �=�CUIW Ifl COYni�/pitif. �iCh 01 w�tCh !O �tKYNO 7h�ll, Ir10lO�Clrv� Of 1�� tl7t1 Of ii3 lY�C�'�O^ 7-' :e .•
0� tllCmfO i! OnQIMI. �fW 7�10 COYf11�IpU17 IUQ�I�N �h�ll CUnStllut� OM �nC IR� liT� If1lttuminl.
All p7rtiy Mf�tO UndNfl�fW �fW �Q�N Ih�! IMl� IMVYCUOnf. duly �Y�C�ItO DY Ihf O��Uff hf��l0. D�cOme 9UlCtrve on�� ..�e� '-•. .
o��n a�0o��t�0 wlth aeW atC�D�W bY Ya+. Eferow hoid�r naf �M npn� �o d��lroy tn�f� �nstruetlons sn0 atlm0ani pa0�rf �uer ��.e 5� . ea� e.
��t�.
�6. No nolle� or d�matW fh�ll p� ol �ny Nl�tl Uf11�!! If1 wfI11nQ; �O Cllanp� ol Instruetionf fhall b� ol anY �Il�ct unle3! �n wr�1,nG 5:"C' "�
p�rt��f ta t��� �ft�Ow. SuC� w�llloy� �N�II b� fublK< <O Ih1 �onpO�nQ COnOillon� �n0 prov�sians inC wiU n01 b� �Il�ctiv� u��ess ;-•e^ : .
Eurow O���cer ol �n� Auxlallon N df Olfk� nam�0 0� paQ• �.
t7. ��Trusi ONO" sha11 �bo mtan malpapr. "�neumor�ne�" �nau m�an ��in�r ot m� onv�ous. aa wai as i��ns oi anr �yoe �na•e:e.•
finpulsr. 1�� Plural wortl a rk� wrs�, "CION ol �fCrow" sha11 m��n th� Oay ��7trum�n�f ar� r�eortlW. M�k� �aen proral�on on :^e :as �_ ..
O�y mOnlh.
�e. Pra�l� uYu and IwN� on IM bas4 of In� eurrem y�ub ��puref, sauP� ounnq in� pmoa tn�y u� no� avad�b�e rou ue :.,e -•
�mmfGiit�ly Of�C�dlnq y�Y'� IIQu�M: Y tY��ifhW YOu OY Ih� titl� COmD�ny.
t9. Prar�l� r�nlf MW ChHp� fNIN �+�tl W�OIt buY�r wilh �ny C�p0711! Dib �/� idv�nC� G1 IM bi3�i 01 � S��Ifm�n� IurniS��d Cr S�� e• :• ••
r�0��f�nt� IR/1 M wlll COINtt �II r�ntf whkt� I�II Gu� Or�or lo �M c10�� ol �aerow. Mak� n0 �tllufuMnl ap�insl Ouy�r on uneoi�ec i�a ��r�+ .�••+
ot��nvis� Inflfutt�d.
20. Praal� Drtnwumf On IN� MWnne� po11N�1 0� ImD�ov�mM�a, wn�en s�NK MnOs Y�s or whKr b�nNielary mlorms You h� ^ae� a++ ;�
ooUewa d prwnWm lo b� ptatl�0; rpwst Inwra's �p�nl lo �r�n�lp ih� po1Ky to DuY�r, �eW It�w mor�q�p�� e4u�p. Tran�ur ��a ��o�. ..
OtNN infWN1C� p01k1�1. �I �ppfOvW by OYYN. S�II�t r�pf�llnl! Ih�l th� p01Kl�f M� in IOfG�, n01 t1yp01MC�IW. �nG O��mium! :��C
it. WhM prOpNty bNl�q CO�1hy�0 b Mld I� j0�nt t�n�nCy �nY Cish C�iwW IAM�ItOT In lh�t ��CtOw fMll b� IOinl I�nufcy lun6f +r��f1 : •�
•.•�s� InflrGetW M w►Nlnq Iroen Mo �OMt tNuney puup.
t2. S�ou10 yau D�la� a�Il�r clos� OI ae►ow. r�e�rv� or b�eom� �wu� ol any eonllktlnq O�manOs or ela�ms witn nf0�et �o tn�� �u�o� •
nQ�lf OI inY OI tIN pMt W hH�lO. O► Y�Y �1' Oi OrOpuly C�pOfd�C Mr�ln 0� �H�CtfO IMr�. YOu fh�ll R�W 1�� rlphl 10 tl�lconimw �r. .-.�
i�rfMr �tf on your parl unlN �ueh eonll�e� b r�solwC lo you� aaUi�ac�bn. �na You sn+a n�w tM �w�nu np�l io eomm�ne� or a���� �� •=.
p�otNO�nq� fa IIN d�tMminalqn ol fuefl CO�NkI. BuY�r snd MIb� pmtl� and i�wr�lly aqrN to pay W eofli, Oamaq��. wo��^v^�+ �-;
•ap�nNf, meh�Ok�q tNiOM�N �11pMy'� IN�, w11h rpu010 �ny wth proCN0lnqf G OlffMw� suHH�O Or �nCuaW OY Y� �^ Co�nK• c^ �
or �ri�InQ oyt OI tIN� „CfOw.
2]. T�� D�rtlh fyw prNd ou1�IN HCrOw. Ilyl 1�� Ir�nf�elbn, In all OMtInMt raOKt�, tOmDli�s wil� tM Unllorm Fir� OrOinanc� :� -• :.
ot P�Im $p�w�qf, �n0 �serow No10M H �ol 10 W n�pon�10N IMrNa�.
Z�. vurw�m to S�alons t4�t� uW t��t�.S o1 tn� Caulornu �nwrane� Cod�, di�etlw Janwry �. �i�S, �ny u11� Insur�nu eomo�n. .� :r .•�
n11� com0�ny w ContralNd �serow Comp�ey N�nObnQ luntls �n � fubl�erow upatlly In ConMCUon vnth Iln� ��erow musi n�v� a�� :++^ -• •�
�nC Ordl! r�OrH�Minp W�Ourf�m�nlf 10 0� n��0� by il O�pOfu�O inlo �u �uO�sCro+O�poN�ory �eeoum D�lor� �l C�n maR� �ny o��o., ,�— •
Ih�s �fdOw �nA/a� rKWO y0u1 IfM�Ktb�.
To wa�0 fubflantl�l tlN�y m IM ONOurffT�nl OI IunOf hOm fuen fubffCrOw �CCOUM �n0 lM ��fWuny O�I�Y �n eiosinq m�� �s: •-. .•�,•
(11 ut� Ch�Ckf. f11�t� 4fiN� Of TpNy O�dMs Otfwn On Or �sfuf0 bY OIt1Nt Ol (M�f1G1�1 �MUWUOfN IpC�iM w�IMn th� Sl�t� 01 Ca���o• ^.• . �. .
vs�nq �ny Qf�it�. Otf1M Ih�fl fMf� d��ll�. �fW (�) �ny If�nst�r� ol IunOs I�OT IiMRC��I �nsl�lul�onf oullitl� IR� $1�1� OI CalilOrm� w.�� ��:. •' ', .
IN�fif�f , ,
Tn�� No��e� i� p�va+ a you Dy Tn� Eurow Con��euo� �� � court�sy Th� btrow COnn�euon �s not r�sponslbl� tor any •�•���+ • '� (
�osfa. ��p�Ma O� CM�yf �n 0lsburNin�ntf wnith may D� cwfW or oetaf�on�d OY �ny a1�Y n�epf�ta�W by �n� n�w iaw �