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Acceptance of Easements for Stone Eagle and Cornishe of Bighorn Projects
CITY OF PALM DESERT DEPARTMENT OF COMMUNITY DEVELOPMENT STAFF REPORT REQUEST: ACCEPTANCE OF CERTAIN CONSERVATION EASEMENTS FOR THE STONE EAGLE AND CORNISHE OF BIGHORN PROJECTS, APPROVAL OF THE FIRST AMENDMENT TO AN EXISTING CONSERVATION EASEMENT AND AN AGREEMENT REGARDING EASEMENTS AT STONE EAGLE, AND AUTHORIZATION OF MAYOR TO EXECUTE SAID DOCUMENTS SUBMITTED BY: Lauri Aylaian, Director of Community Development DATE: August 23, 2012 CONTENTS: 1. Conservation Easement ("Stone Eagle Conservation Easement") 2. Conservation Easement ("Association Conservation Easement") 3. Agreement Regarding Easements, between the City of Palm Desert and Stone Eagle, LLC 4. Amendment to Conservation Easement, between the City of Palm Desert and Stone Eagle Open Space, LLC 5. Covenant of Easement for Conservation, between the City of Palm Desert and Bighorn, LLC Recommendation By Minute Motion: 1. Accept Conservation Easements from Stone Eagle, LLC and Stone Eagle Association for a total of approximately 57.2 acres; 2. Approve First Amendment to Conservation Easement with Stone Eagle Open Space, LLC; 3. Approve Agreement Regarding Easements between City of Palm Desert and Stone Eagle, LLC; 4. Approve Covenant of Easement for Conservation of approximately 8.74 acres at Cornishe of Bighorn project; and 5. Authorize Mayor to execute above -described documents. Background When the Stone Eagle project was first developed in 2004, a blanket conservation easement was granted to the City over 391 acres, the bulk of the area to be conserved. There are several smaller parcels (stream beds, retention basins, and small parcels within the residential areas) that also needed to be included, but finalization of those easements was put on hold pending completion of development. Due to a number of complications, Staff Report Conservation Easements Page 2 of 2 August 23, 2012 including the intervening bankruptcy, finalizing of those easements has been delayed until now. Approval of the staff recommendation will place conservation easements over the remainder parcels, which total approximately 57.2 acres. Approval will also authorize amending the original easement to allow for incidental use of the existing dirt road for maintenance purposes. As part of the approval process for the development of two homes at the Cornishe at Bighorn project, certain conditions of approval and mitigation measures were imposed. Included among the conditions was a requirement that Lot B, an open space comprising 8.74 acres, be preserved with the recordation of a conservation map in a form acceptable to the City Attorney. The approval of the Cornishe project was the subject of subsequent litigation which has been recently resolved, and the developer has now submitted grading plans for review and approval. City staff would like to be sure that the required conservation easement is executed and recorded prior to issuance of grading permits. Approval of the staff recommendation will allow the City to accept the easement, which has been reviewed and found to be acceptable by the City Attorney, and the Mayor to execute it. Environmental Review The actions recommended in this staff report constitute implementation of conditions of approval that were imposed on the Stone Eagle and Cornishe at Bighorn projects to mitigate possible adverse environmental impacts associated with those projects. The actions serve to transfer ownership of interest in land to preserve existing natural conditions. As such, the actions qualify as a Class 25 categorical exemption, and no further study is necessary. Fiscal Analysis The cost of maintaining the 57.2 acres of conservation area at the Stone Eagle project are transferred to Stone Eagle in the Agreement Regarding Easements recommended for approval in this staff report. Any costs associated with maintaining the conservation easement over the 8.74 acres of the Cornishe at Bighorn land is expected to be nominal. Nonetheless, City staff is investigating the possibility of transferring the easement to another party in an effort to minimize or eliminate all recurring costs. Submitted By: CITY COUMMLi TION APPROVED DENIED RECEIVED OTHER Lauri Aylaian, Director of Com velop MEETING DATE a AYES: L71KITU, NOES: _ ABSENT: ABSTAIN: Wohlmuth, City Manager VERIFIED BY: Original on File with City Cher c's Office GAPlanning\Lauri Aylaian\Staff Reports\Conservation Easements 8.23-12.doc RECORDING REQUESTED BY: City of Palm Desert 73 -5 10 Fred Waring Drive Palm Desert, CA 92260 Attn: City Attorney MAIL TO: City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 Attn: City Clerk Space Above Line for Recorder's Use Only CONSERVATION EASEMENT THIS CONSERVATION EASEMENT is made this day of , 2012 by Stone Eagle, LLC, a California limited liability company ("Grantor") in favor of the City of Palm Desert, a California municipal corporation (herein "Grantee") with reference to the following facts: RECITALS A. Grantor is the sole owner in fee simple of that certain real property that is legally described on Exhibit "A" and depicted on Exhibits "B-1" and "Exhibit `1B-2" attached hereto and incorporated by this reference. (collectively, the "Property"). The Property consists of not less than 52.73 acres, and is found within Assessor's Parcel Numbers 652-020-010-6, 652-020- 020-5, 652-020-022-7 and 652-320-002-9. B. The Property is located in the City of Palm Desert, County of Riverside, State of California, and is commonly referred to as Stone Eagle (the "Project"). C. The Property provides mitigation for certain impacts of the Project by Grantor pursuant to requirements o£ 1. The United States Army Corps of Engineers' ("ACOE") Section 404 Permit No. 2002-01135-RRS and any amendments thereto ("Section 404 Permit"); and 2. The Agreement Regarding Proposed Activities Subject to California Fish and Game Code Section 1603and any amendments thereto (the "Streambed Alteration Agreement"), issued by the California Department of Fish and Game ("CDFG"); and 3. Biological Opinion No. "Biological Opinion" or "BO") issued by ("USFWS"); and ERIV 3080.2 dated November 1, 2003 (the the United States Fish and Wildlife Service -1- 41308562.7 BF doe 515390-3 4. The City of Palm Desert's Planning Commission Resolution 2155, dated October 1, 2002 and the City of Palm Desert's Ordinance 1028. All of the foregoing shall hereafter be collectively referred to as the "Agency Permits." D. This Conservation Easement is designed to satisfy and is granted in partial satisfaction of Special Condition 4 of the Section 404 Permit which requires Grantor, to record a Conservation Easement over the Compensatory Mitigation (defined below) areas and water quality stormwater basin (the "Basin") constructed as part of the Project. E. Consistent with the terms and conditions of this Conservation Easement, the Property is and will remain in a Natural Condition as defined herein and is intended to be preserved in its natural, scenic, open condition to maintain its ecological, historical, visual and educational values (collectively, "Conservation Values"), and these Conservation Values are consistent with the habitat conservation purposes of this Conservation Easement. The Conservation Values are of importance to the people of the County of Riverside and the people of the State of California and United States, F. Grantee is authorized to hold conservation easements pursuant to Civil Code Section 815.3. Specifically, Grantee is an entity identified in Civil Code Section 815.3 and otherwise authorized to acquire and hold title to real property. G. The ACOE is the Federal agency charged with regulatory authority over discharges of dredged and fill material in waters of the United States pursuant to Section 404 of the Clean Water Act, and is a third party beneficiary of this Conservation Easement. COVENANTS, TERMS, CONDITIONS AND RESTRICTIONS In consideration of the above recitals and the mutual covenants, terms, conditions, and restrictions contained herein, and pursuant to laws of the United States and State of California, including Civil Code Section 815, et seq., Grantor hereby voluntarily grants and conveys to Grantee a conservation easement in perpetuity over the Property of the nature and character and to the extent hereinafter set forth ("Conservation Easement"). This Conservation Easement shall run with the land and be binding on Grantor's heirs, successors, administrators, assigns, lessees, and other occupiers or users of the Property or any portion of it. 1. Purpose. (a) The purposes of this Conservation Easement are to ensure the Property, although portions are man-made, will be preserved in a Natural Condition, as defined herein, in perpetuity and to prevent, subject to the duties and rights retained by Grantor hereunder, any other use of the Property that will impair or interfere with the Conservation Values of the Property, as long as such uses or restrictions are consistent with the maintenance and management activities associated with the Basin and are consistent with the concepts contained in this Section 1(a) (the "Purpose"). Grantor intends that the Basin, which comprises a portion of the Property, will be subject to routine maintenance and upkeep on at least an annual basis. -2- 41308562.7 BF doe 515390-3 Growth of vegetation and accumulated sediment within the Basin will be cleared periodically so as not to impair the hydrologic and water quality function of the Basin. Grantor intends that this Conservation Easement will confine the use of the Property to such activities, including without limitation, those involving the preservation and enhancement of native species and their habitat, in a manner consistent with the habitat conservation and water quality stormwater basin purposes of this Conservation Easement and those rights retained herein. (b) The term "Natural Condition," as referenced in the preceding paragraph and other portions of this Conservation Easement, shall mean the condition of the Property, as it exists at the time this Conservation Easement is executed, as well as future enhancements or changes to the Property that occur directly as a result of the following activities: (1) Compensatory mitigation measures, including implementation, maintenance, and monitoring activities (collectively, "Compensatory Mitigation") required by the Section 404 Permit and as described in the Final Habitat Mitigation and Monitoring Plan dated February 24, 2004 ("Mitigation Plan"), a copy of which is attached as Exhibit "C;" (2) In -perpetuity maintenance ("Long -Term Maintenance"), that occurs on the Property as described in Section 18 herein; or (3) Activities described in Section 4, Section 6 and Section 18 herein. (c) Grantor certifies to Grantee and ACOE, that to Grantor's actual knowledge the only man-made structures or improvements existing on the Property at the time this grant is executed consist of the Basin, two authorized 20-foot trail/access easements, seven gates, existing cart paths and cart path crossings, an existing dirt road, and revegetation efforts. Grantor further certifies to Grantee and ACOE that, to Grantor's actual knowledge, there are no previously granted easements, limitations, restrictions, dedications, rights of way or encumbrances existing on the Property that interfere or conflict with the Purpose of this Conservation Easement as evidenced by the Preliminary Title Report attached at Exhibit "D". The current Natural Condition is evidenced in part by the depiction of the Property attached on Exhibit "E," showing all relevant and plottable property lines, easements, dedications, structures and improvements (existing and future). Grantor has delivered further evidence of the current Natural Condition to Grantee and ACOE consisting of (1) an aerial photograph of the Property at an appropriate scale taken as close in time as possible to the date this Conservation Easement is executed; (2) an overlay of the Property boundaries on such aerial photograph; (3) on -site photographs showing all man-made improvements or structures (if any) and the major, distinct natural features of the Property. (d) If a controversy arises with respect to the current Natural Condition of the Property, Grantor, Grantee, or ACOE as a third party beneficiary, or any designees or agents of Grantor, Grantee, and ACOE shall not be foreclosed from utilizing any and all other relevant documents, surveys, photographs or other evidence or information to assist in the resolution of the controversy. -3 - 41308562.7 BF doc 515390-3 (e) The term "Biological Monitor" shall mean an independent third -party consultant possessing knowledge of aquatic resources in the Riverside County area and expertise in the field of biology or a related field. 2. Grantee's Rights. To accomplish the Purpose of this Conservation Easement, Grantor, its successor and assign hereby grants and conveys the following rights to Grantee. Subject to and in accordance with Section 8(a), these rights are also granted to ACOE or its designees as a third party beneficiary of this Conservation Easement: (a) To preserve and protect the Conservation Values of the Property; and (b) To enter upon the Property at reasonable times in order to monitor compliance with and to otherwise enforce the terms of this Conservation Easement provided that Grantee shall not unreasonably interfere with Grantor's use and quiet enjoyment of the Property; and (c) To prevent any activity on or use of the Property that is inconsistent with the Purpose of this Conservation Easement and to require the restoration of such areas or features of the Property that may be damaged by any act, failure to act, or any use that is inconsistent with the Purpose of this Conservation Easement; and (d) All mineral, air, and water rights necessary to protect and to sustain the biological resources of the Property, provided that any exercise of such rights by Grantee shall not result in conflict with such Conservation Values; and (e) Except as provided in Section 6, the right to all present and future development rights allocated, implied, reserved or inherent in the Property; such rights are hereby terminated and extinguished, and may not be used on or transferred to any portion of the Property, nor any other property adjacent or otherwise; and (f) The right to enforce by any means available at law or equity, including, without limitation, injunctive relief, the terms and conditions of this Conservation Easement. 3. Prohibited Uses. Any activity on or use of the Property inconsistent with the Purpose of this Conservation Easement and not reserved as a right of Grantor is prohibited. Without limiting the generality of the foregoing, the following uses by Grantor, Grantee, and their respective guests, agents, assigns, employees, representatives, successors, and third parties within their control are expressly prohibited on the Property except as otherwise provided herein or unless specifically provided for in the Agency Permits, Mitigation Plan, and any easements and reservations of rights recorded in the chain of title to the Property at the time of this conveyance (as set forth on Exhibit "D" hereto): (a) Unseasonable or supplemental watering except for habitat enhancement activities described in Section 6(b) or Mitigation Plan; -4- 41308562.7 BF doc 515390-3 (b) Use of herbicides, pesticides, biocides, fertilizers, or other agricultural chemicals or weed abatement activities, except weed abatement activities necessary to control or remove invasive species pursuant to Section 6 or the Mitigation Plan; (c) Incompatible fire protection activities except fire prevention activities set forth in Section 6; (d) Use of off -road vehicles and use of any other motorized vehicles except in the execution of management duties; (e) Use of plants for landscaping or other purposes that are invasive or pose a health threat to wildlife; (f) Grazing or other agricultural activity of any kind; (g) Surface entry for exploration or extraction of minerals of any kind; (h) Recreational activities including, but not limited to, horseback riding, biking, hunting or fishing; (i) Residential, commercial, retail, institutional or industrial uses; 0) Any legal or de facto division, subdivision or portioning of the Property; (k) Construction, reconstruction or placement of any building or other improvement, billboard, or sign except the Basin and those signs and fencing specifically allowed under Section 4(d), Section 4(e) and Section 6(d), and trails, dirt road, and cart paths and cart path crossings on the Property specially allowed under Section 6; (1) Dumping, depositing or accumulating soil, trash, ashes, refuse, waste, bio- solids or any other material; (m) Planting, introduction or dispersal of non-native or exotic plant or animal species; (n) Filling, dumping, excavating, draining, dredging, mining, drilling, removing or exploring for or extraction of minerals, loam, gravel, soil, rock, sand or other material on or below the surface of the Property; (o) Altering the general topography of the Property, including but not limited to building of roads, flood control work, basins and trails, except for maintaining the authorized Basin, trails, dirt road, cart paths, and cart path crossings as shown on Exhibit "E" and completing the Mitigation Plan on the Property; (p) Removing, destroying, or cutting of trees, shrubs or other vegetation, except for (1) emergency fire breaks as required by fire safety officials as set forth in Section 6W, (2) prevention or treatment of disease, (3) maintenance of existing authorized trails, dirt -5- 41308562.7 BF doc 515390-3 road, cart paths and crossings, and Basin in accordance with Section 6, (4) control of invasive species which threaten the integrity of the habitat, (5) completing the Mitigation Plan, or (6) activities described in Section 4, Section 6 and Section 18; (q) Activities or uses detrimental to water quality, including but not limited to degradation or pollution of any surface or sub -surface waters except as necessary to implement the Mitigation Plan or any right reserved in Section 6 or Section 18; and (r) Creating, enhancing or maintaining fuel modification zones (defined as a strip of mowed land or the planting of vegetation possessing low combustibility for purposes of fire suppression) or other activities that could constitute fuel modification zones. 4. Grantor's Duties. To accomplish the Purpose of this Conservation Easement as described in Section 1, Grantor shall undertake construction, maintenance and monitoring of mitigated areas pursuant to the Mitigation Plan until issuance of final approval from the ACOE confirming that Grantor has successfully completed construction, maintenance and monitoring of mitigated areas pursuant to the Mitigation Plan ("ACOE Final Approval"). This duty is non- transferrable to Association. Grantor, its successors and assigns shall: (a) Undertake all reasonable actions to prevent the unlawful entry and trespass by persons whose activities may degrade or harm the Conservation Values of the Property. In addition, Grantor shall undertake all necessary actions to grant Grantee's rights under Section 2 of this Conservation Easement; and (b) Cooperate with Grantee in the protection of the Conservation Values; and (c) Repair and restore damage to the Conservation Easement directly or indirectly caused by Grantor, Grantor's guests, representatives, employees or agents, and third parties within its control, provided, however, Grantor, its successors or assigns shall not engage in any repair or restoration work in .the Property without first consulting with the ACOE; and (d) Install signs as described in Section 6(d) deemed necessary by Grantee, USFWS and/or ACOE to manage human disturbance of the Property and maintain and replace such signs in accordance with Section 18 herein; and (e) Install bighorn sheep exclusionary fencing to protect the Property from intrusion and any other fencing deemed necessary by Grantee, USFWS and/or ACOE and maintain and replace such fencing in accordance with Section 18 herein; and (f) Upon receipt of ACOE Final Approval, perform Long -Term Maintenance of the Property as described in Section 18 herein and conduct any other activities necessary for the maintenance and protection of this Conservation Easement in order to preserve wildlife and wetland/water quality values in perpetuity; and (h) Obtain any applicable governmental permits and approvals for any activity or use permitted by this Conservation Easement, and any activity or use shall be undertaken in 41308562.7 BF doc 515390-3 accordance with all applicable federal, state, local and administrative agency statutes, ordinances, rules, regulations, orders or requirements. 5. Grantee's Duties. To accomplish the Purpose of this Conservation Easement as described in Section 1, Grantee, its successors and assigns shall: (a) Prevent any activity on or use of the Property that is inconsistent with the Purpose of this Conservation Easement; and (b) Perform at least quarterly compliance inspections of the Property, prepare an annual inspection report (the "Annual Inspection Report") that documents the annual inspection results that substantially follows the form attached in Exhibit " F" attached hereto, and make the Annual Inspection Report available to either ACOE or USFWS upon request. 6. Reserved Rights. Grantor reserves to itself, and to its personal representatives, heirs, successors, and assigns, all rights accruing from its ownership of the Property, including the right to engage in or to permit or invite others to engage in all uses of the Property that are not expressly prohibited or limited by, and are consistent with the Purpose of this Conservation Easement, including the following uses: (a) Access. Reasonable access through the Property to adjacent land over existing roads, trails, cart paths and cart path crossing, or to perform obligations or other activities permitted by this Conservation Easement or that are required under the Agency Permits. In the event Grantor conveys its interest in the Property prior to completion of Compensatory Mitigation requirements, Grantor expressly reserves the right to enter the Property to perform such work thereon as is required to meet the Compensatory Mitigation obligations of the Section 404 Permit. (b) Habitat Enhancement and Repair Activities. Enhancement of native plant communities, including the right to plant trees and shrubs of the same type as currently existing on the Property, so long as such activities do not harm the habitat types identified in the Section 404 Permit or Mitigation Plan. For purposes of preventing erosion, repairing damage caused by naturally occurring events and reestablishing native vegetation, the Grantor shall have the right to repair and revegetate areas that may be damaged by the permitted activities under this Section 6, naturally occurring events or by the acts of persons wrongfully damaging the Natural Condition of the Property. Prior to any habitat enhancement activities, Grantor shall have its Biological Monitor submit detailed plans to the Grantee and ACOE for review and approval. Habitat enhancement activities shall not be in direct or potential conflict with the preservation of the Natural Condition of the Property or the Purpose of this Conservation Easement and shall be performed in compliance with all applicable laws, regulations, and permitting requirements. (c) Vegetation, Debris, and Exotic Species Removal. Removal or trimming of vegetation downed or damaged due to natural disaster, removal of man-made debris, removal of parasitic vegetation (as it relates to the health of the host plant) and removal of non-native or exotic plant or animal species. Vegetation, debris, and exotic plant species removal shall not be in direct or potential conflict with the preservation of the Natural Condition of the Property or the Purpose of this Conservation Easement and shall be performed in compliance with all applicable laws, regulations, and permitting requirements. -7- 41308562.7 BF doc 515390-3 (d) Erection and Maintenance of Informative Signnage. Erection and maintenance of signage and other notification features saying "Natural Area Open Space," "Protected Natural Area," or similar descriptions that inform persons of the nature and restrictions on the Property. Prior to erection of such signage, the Grantor shall submit detailed plans showing the location and language of such signs to the Grantee and ACOE for review and approval. The erection and maintenance of informative signage shall not be in direct or potential conflict with the preservation of the Natural Condition of the Property or the Purpose of this Conservation Easement and shall be performed in compliance with all applicable laws, regulations, and permitting requirements. (e) Cart Paths. The right to maintain and utilize the existing cart paths and cart path crossings on or across the Property and the right to relocate the existing cart path crossings from time to time, in connection with maintenance and/or reconfiguration of the golf course property adjacent to the Property. Prior to any such relocation activities, Grantor shall have its Biological Monitor submit detailed plans for such work to ACOE for its review and approval, which shall not be unreasonably withheld, conditioned or delayed. Any such relocation work shall be accomplished in a manner that does not conflict with the preservation of the Natural Condition of the Property or the Purpose of this Conservation Easement and shall be performed in compliance with all applicable laws, regulations and permitting requirements. (f) No Interference with Development of Adjoining_Property. Notwithstanding anything set forth herein to the contrary, nothing in this Conservation Easement is intended nor shall be applied to in any way limit Grantor or any of Grantor's successors and assigns from (1) constructing, placing, installing, and/or erecting any improvements upon the portions of the Project not constituting the Property, (2) developing adjoining property for any purposes, except as limited by any local, state or federal permit requirements for such development and provided that for all of the above clauses (1) and (2) neither such activity nor any effect resulting from such activity amounts to a use of the Property, or has an impact upon the Property, that is prohibited by Section 3 above. (g) Fire Protection. The right, in an emergency situation only, to maintain firebreaks (defined as a strip of plowed or cleared land made to check the spread of a fire), trim or remove brush, otherwise perform preventative measures required by the fire department to protect structures and other improvements from encroaching fire. All other brush management activities shall be limited to areas outside the Property. (h) Trails. The right to maintain and utilize upon the Property a single 20-foot multi -use trail easement and a single 20-foot access easement as shown on Exhibit "E" hereto. (i) Basin. The right to maintain, repair, utilize, remove, and replace the Basin shown on Exhibit "E", and the right to access this structure. Maintenance of the Basin shall include, but not be limited to, those long-term maintenance activities such as (i) periodic inspection, (ii) vegetation removal, (iii) debris/sediment removal, (iv) rodent control, (v) outlet structure and spillway inspection or repair for cracking, movement, seepage, and piping, (vi) inspection or repair of embankment and slopes for seepage, piping, and instability, and (vii) if necessary, removal and replacement. Maintenance of the Basin shall be performed in compliance with all applicable statutes, regulations, and permitting requirements. IF:ie 41308562.7 BF doc 515390-3 0) Dirt Road. The right to maintain and use the dirt road as shown on Exhibit "E" hereto for access to maintain and repair the fencing and signage described in Section 4(d) and (e) herein and to perform other duties of Grantor hereunder, including the long- term maintenance obligations under Section 18 herein below. 7. Principles of Conservation Presentation. Grantor's activities and Grantee's right to enforce the provisions of this Conservation Easement shall be guided by certain principles ("Principles"), including but not limited to the following: (a) Conservation in Perpetuity. Grantee's rights shall be exercised for their permanent benefits to the Conservation Values. (b) Natural Regeneration. Natural restoration shall be used if appropriate, based on the magnitude of the impact, the impacts on listed or sensitive species, and the estimated time for recovery to occur. (c) Limited Resources. No endowment is provided for the stewardship of the Property. Grantor has limited financial resources for funding activities in or about the Property. (d) Intent to Cooperate. Grantor and Grantee agree to cooperate in achieving the Purpose of this Conservation Easement. 8. Enforcement. (a) Right to Enforce. Grantor, its successors and assigns, grant to the ACOE, the U.S. Department of Justice, and the State Attorney General a discretionary right to enforce this Conservation Easement in a judicial or administrative action against any person(s) or other entity(ies) violating or attempting to violate this Conservation Easement; provided, however, that no violation of this Conservation Easement shall result in a forfeiture or reversion of title. The ACOE, U.S. Department of Justice, and the State Attorney General shall have the same rights, remedies and limitations as Grantee under this Section 8. The rights under this Section are in addition to, and do not limit rights conferred in Section 2 above, the rights of enforcement against Grantor and their successors or assigns under the Agency Permits, or any rights of the various documents created thereunder or referred to therein. (b) Notice. (1) If Grantee determines Grantor is in violation of the terms of this Conservation Easement or that a violation is threatened, Grantee may demand the cure of such violation. In such a case, Grantee shall issue a written notice to Grantor (hereinafter "Notice of Violation") informing Grantor of the violation and demanding cure of such violation. (2) Grantor shall cure the noticed violation within fifteen (15) days of receipt of said written notice from Grantee. If said cure reasonably requires more than fifteen (15) days, Grantor shall, within the fifteen (15) day period, submit to Grantee for review and approval a plan and time schedule to diligently complete a cure. Grantor shall complete such cure in accordance with the approved plan. If Grantor disputes the notice of violation, it shall Q 41308562.7 BF doe 515390-3 issue a written notice of such dispute (hereinafter "Notice of Dispute") to the Grantee within fifteen (15) days of receipt of written notice of violation. (3) If Grantor fails to cure the noticed violation(s) within the time period(s) described in Section 8(b)(2) above, or Section 8(d) below, Grantee may bring an action at law or in equity in a court of competent jurisdiction to enforce compliance by Grantor with the terms of this Conservation Easement. In such action, the Grantee may (i) recover any damages to which they may be entitled for violation by Grantor of the terms of this Conservation Easement, (ii) enjoin the violation, ex parte if necessary, by temporary or permanent injunction without the necessity of proving either actual damages or the inadequacy of otherwise available legal remedies, or (iii) pursue other equitable relief, including, but not limited to, the restoration of the Property to the condition in which it existed prior to any such violation or injury. Grantee may apply any damages recovered to the cost of undertaking any corrective action on the Property. (4) If Grantor provides Grantee with a notice of dispute, as provided herein, Grantee shall meet and confer with Grantor at a mutually agreeable place and time, not to exceed thirty (30) days from the date that Grantee receives the notice of dispute. Grantee shall consider all relevant information concerning the disputed violation provided by Grantor, and shall determine whether a violation has in fact occurred and, if so, whether the notice of violation and demand for cure issued by Grantee is appropriate in light of the violation. (5) If, after reviewing Grantor's notice of dispute, conferring with Grantor, and considering all relevant information relatedtothe violation, Grantee determines that a violation has occurred, Grantee shall give Grantor notice of such determination in writing. Upon receipt of such determination, Grantor shall have fifteen (15) days to cure the violation. If said cure reasonably requires more than fifteen (15) days, Grantor shall, within the fifteen (15) day period, submit to Grantee for review and approval a plan and time schedule to diligently complete a cure. Grantor shall complete such cure in accordance with the approved plan. (c) Conflicting Notices of Violation. (1) If Grantor receives a Notice of Violation from Grantee or ACOE that is in material conflict with one or more prior written Notices of Violation that have not yet been cured by Grantor (hereinafter "Active Notice(s) of Violation") such that the conflict makes it impossible for Grantor carry out cure consistent with all prior Active Notices of Violation, Grantor shall give written notice (hereinafter "Notice of Conflict") to the agency or agencies issuing the later, conflicting Notice(s) of Violation. Grantor shall issue said Notice of Conflict to the appropriate agency or agencies within fifteen (15) days of the receipt of each such conflicting Notice of Violation. A valid Notice of Conflict shall describe the conflict with specificity, including a description of how the conflict makes compliance with all Active Notices of Violation impossible. (2) Upon issuing a valid notice of conflict to the appropriate agency, as described above, Grantor shall not be required to carry out the cure described in the conflicting Notice or Notices of Violation until such time as the agency or agencies responsible for said conflicting Notice(s) of Violation issue(s) a revised Notice of Violation that is consistent with prior Active Notices of Violation. Upon receipt of a revised, consistent Notice of Violation, Grantor shall carry out the cure recommended in such notice within the time period(s) described -10- 41308562.7 BF doc 515390-3 in Section 8(b)(2), above. Notwithstanding Section 8(d), failure to cure within said time period(s) shall entitle Grantee to the remedies described in Section 8(b)(3). (3) The failure of Grantor to issue a valid Notice of Conflict within fifteen (15) days of receipt of a conflicting Notice of Violation shall result in a waiver of Grantor's ability to claim a conflict. (4) This Section 8(c) shall not apply to Section 8(d), below. (d) Immediate Action. If Grantee determines that circumstances require immediate action to prevent or mitigate significant damage to the Natural Condition or Conservation Values of the Property, Grantee may immediately pursue all available remedies, including injunctive relief, available pursuant to both this Conservation Easement and state and federal law after giving Grantor at least twenty four (24) hours' written notice before pursuing such remedies. So long as such twenty four (24) hours' notice is given, Grantee may immediately pursue all available remedies without waiting for the expiration of the time periods provided for cure or notice of dispute as described in Section 8(b)(2). The written notice pursuant to this paragraph may be transmitted to Grantor by facsimile. The rights of Grantee under this paragraph apply equally to actual or threatened violations of the terms of this Conservation Easement. Grantor agrees that the remedies at law for Grantee for any violation of the terms of this Conservation Easement are inadequate and that Grantee shall be entitled to the injunctive relief described in this Section 8, both prohibitive and mandatory, in addition to such other relief to which Grantee may be entitled, including specific performance of the terms of this Conservation Easement, without the necessity of proving either actual damages or the inadequacy of otherwise available legal remedies. The remedies described in this Section 8(c) shall be cumulative and shall be in addition to all remedies now or hereafter existing at law or in equity. (e) Costs of Enforcement. Any costs incurred by Grantee, as the prevailing party, in enforcing the terms of this Conservation Easement against Grantor including, but not limited to, costs of suit and attorneys' fees, and any costs of restoration necessitated by Grantor's violation or negligence under the terms of this Conservation Easement shall be borne by Grantor. (f) Enforcement Discretion. Enforcement of the terms of this Conservation Easement shall be at the discretion of the Grantee. Any forbearance by Grantee to exercise rights under this Conservation Easement in the event of any breach of any term of this Conservation Easement by Grantor shall not be deemed or construed to be a waiver by Grantee of such term or of any subsequent breach of the same or any other term of this Conservation Easement or of any of the rights of Grantee a under this Conservation Easement. No delay or omission by Grantee in the exercise of any right or remedy upon any breach by Grantor shall impair such right or remedy or be construed as a waiver. (g) Acts Beyond Grantor's Control. Nothing contained in this Conservation Easement shall be construed to entitle Grantee to bring any action against Grantor or any injury to or change in the Property resulting from: 41308562.7 BF doc 515390-3 (1) Any natural cause beyond Grantor's control, including without limitation, fire not caused by Grantor, flood, storm, and earth movement; or (2) Any prudent action taken by Grantor under emergency conditions to prevent, abate, or mitigate significant injury to persons and/or the Property resulting from such causes; or (3) Acts by Grantee and/or ACOE or their employees, directors, officers, agents, contractors, or representatives. Notwithstanding the foregoing, Grantor must obtain any applicable governmental permits and approvals for any activity or use permitted by this Conservation Easement, and undertake any activity or use in accordance with all applicable federal, state, local and administrative agency statutes, ordinances, rules, regulations, orders or requirements. 9. Vegetation Replacement and Maintenance. Grantor shall not be responsible for any vegetation replacement, maintenance, or the cost thereof, except for vegetation replacement or maintenance required as part of the Mitigation Plan or Long -Term Maintenance of the Property per Section 18. 10. Access. This Conservation Easement does not convey a general right of access to the public or a general right of access to the Property. In accordance with Section 4(e), Grantor, its successors or assigns shall install signage at all likely points of entry informing persons of the nature and restrictions on the Property. This Conservation Easement will allow for access to the Property by the ALOE, USFWS, CDFG, the Bureau of Land Management, and third -party easement holders of record at the time of this conveyance at locations designated in easements and reservations of rights recorded in the chain of title to the Property at the time of this conveyance. 11. Costs and Liabilities. (a) General Costs. Grantor, its successors and assigns retain all responsibilities and shall bear all costs and liabilities of any kind related to the ownership, operation, upkeep, and maintenance of the Property except as expressly set forth herein. Notwithstanding anything to the contrary contained herein, it is understood between the parties that the easement rights conveyed herein are expressly subject to all matters of record as of the date hereof and are conveyed in an "as -is" condition, "with all faults" as of such date. No representations or warranties have been, are or will be made and no responsibility has been, is, or will be assumed by Grantor as to the physical, biological, or legal condition of the Property as of the date hereof. (b) Hold Harmless. Grantor, its successors and assigns. shall hold harmless, protect and indemnify ACOE and its respective directors, officers, employees, agents, contractors, and representatives and the heirs, personal representatives, successors and assigns of each of them (each an "ACOE Indemnified Party" and collectively, "ACOE Indemnified Parties") from and against any and all liabilities, penalties, costs, losses, damages, expenses (including, without limitation reasonable attorneys' fees and experts' fees), causes of action, claims, demands, orders, liens or judgments (each a "Claim" and, collectively, "Claims"), to the -12- 41308562.7 BP doe 515390-3 extent arising from or in any way connected with: (i) injury to or the death of any person, or physical damage to any property, resulting from any act, omission, condition, or other matter related to or occurring on or about the Property, regardless of cause and (ii) the existence or administration of this Conservation Easement by Grantor; provided, however, that the indemnification in this Section I I (b) shall be inapplicable to an ACOE Indemnified Party to the extent of any Claim due solely to the negligence of that ACOE Indemnified Party or any of its employees. 12. Taxes. Grantor, its successors and assigns shall pay before delinquency all taxes, assessments, fees, and charges of whatever description levied on or assessed against the Property by competent authority, including any taxes imposed upon, or incurred as a result of, this Conservation Easement, and shall furnish Grantee or the ACOE with satisfactory evidence of payment upon request. 13. Condemnation. The Purpose of the Conservation Easement is presumed to be the best and most necessary public use as defined in Civil Procedure Code Section 1240.680 notwithstanding of Civil Procedure Code Sections 1240.690 and 1240.700. Nevertheless, if the Property is taken, in whole or in part, by exercise of the power of eminent domain, Grantor and Grantee shall be entitled to compensation in accordance with applicable law. 14. Subsequent Transfers. (a) By Grantee. This Conservation_ Easement is transferable by Grantee, but Grantee may assign its rights and delegate obligations under this Conservation Easement only to an entity or organization authorized to acquire and hold conservation easements pursuant to Civil Code Section 815.3 and Government Code Section 65965 (or any successor or other provision(s) then applicable) and only with the prior written approval of Grantor and ACOE. Grantee shall record the assignment in the county where the Property is located. (b) By Grantor. (1) The covenants, conditions, and restrictions contained in this Conservation Easement are intended to and shall run with the land and bind all future owners of any interest in the Property. Grantor, its successor or assign agrees to (i) incorporate by reference to the title of and the recording information for this Conservation Easement in any deed or other legal instrument by which each divests itself of any interest in all or a portion of the Property, including, without limitation, a leasehold interest and (ii) give actual notice to any such transferee or lessee of the existence of this Conservation Easement. Grantor, its successor and assign agrees to give written notice to Grantee and ACOE of the intent to transfer any interest at least sixty (60) days prior to the date of such transfer. The failure of Grantor, its successor or assign to perform any act provided in this Section 14 shall not impair the validity of this Conservation Easement or limit its enforceability in any way. (2) From and after the date of any transfer of the Property by Grantor and each transfer thereafter, (i) the transferee shall be deemed to have assumed all of the obligations of Grantor, as set forth in this Conservation Easement except as provided in Section 4 (opening paragraph), (ii) the transferee shall be deemed to have accepted the restrictions contained herein, (iii) the transferor, as applicable, shall have no further obligations hereunder -13- 41308562.7 BF doe 515390-3 except pursuant to Section 4 and Section 23(g), and (iv) all references to Grantor in this Conservation Easement shall thereafter be deemed to refer to such transferee. 15. Additional Easements. Grantor shall not grant any additional easements, rights of way or other interests in the surface or subsurface of the Property (other than a security interest that is subordinate to this Conservation Easement), or grant or otherwise abandon or relinquish any water rights relating to the Property, without first obtaining the written consent of Grantee and ACOE. Grantee and/or ACOE may withhold such consent if it determines that the proposed interest or transfer is inconsistent with the Purpose of this Conservation Easement or will impair or interfere with the Conservation Values of the Property. This Section 15 shall not prohibit transfer of a fee or leasehold interest in the Property that is subject to this Conservation Easement and complies with Section 14. Grantor, its successors and assigns shall record any additional easements or other interests in the Property approved by the Grantee and ACOE in the official records of Riverside County, California and provide a copy of the recorded document to Grantee and ACOE. 14. Notices. All notices, demands, requests, consents, approvals, or communications from one party to another shall be personally delivered or sent by facsimile to the persons set forth below or shall be deemed given five (5) days after deposit in the United States mail, certified and postage prepaid, return receipt requested, and addressed as follows, or at such other address as any Party may from time to time specify to the other parties in writing: To Grantor: Stone Eagle, LLC 72450 Stone Eagle Drive Palm Desert, CA 92260 FAX: 760-773-6201 To Grantee: City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 FAX: 760-340-0574 With a copy to: District Counsel U.S. Army Corps of Engineers Los Angeles District 915 Wilshire Boulevard, Room 1535 Los Angeles, CA 90017-3401 FAX: 213-452-4217 The parties agree to accept facsimile signed documents and agree to rely upon such documents as if they bore original signatures. Each party agrees to provide to the other parties, within seventy-two (72) hours after transmission of such a facsimile, the original documents that bear the original signatures. 17. Amendment. Grantor and Grantee may amend this Conservation Easement only by mutual written agreement and with the written consent of the ACOE. Any such amendment shall be consistent with the Purpose of this Conservation Easement and shall not affect its -14- 41308562.7 BF doc 515390-3 perpetual duration. Grantor or its successors and assigns shall record any amendments to this Conservation Easement approved by the Grantee and ACOE in the official records of Riverside County, California and shall provide a copy of the recorded document to the Grantee and ACOE. 18. Long -Term Maintenance. (a) Grantor shall be responsible for in -perpetuity, ongoing, long-term maintenance and management of the Property. (b) Such long-term maintenance shall consist of the following activities: (1) annual removal of trash or man-made debris; (2) maintenance, repair or replacement of signage and other notification features installed pursuant to Section 4(d) or Section 6(d), as needed; (3) maintenance of the bighorn sheep exclusionary fence and any other protective fencing installed on the Property and replacement of such fences when necessary; (d) removing and controlling non-native weeds and exotic vegetation including but not limited to oleanders (Nerium oleander), fountain grass (Pennisteum villosum), and tamarix spp. (c) Grantor, its successors and assigns shall be obligated to repair, remediate, or restore the Property damaged by any activities prohibited by Section 3 herein. (d) Grantor, its successors and assigns, shall prepare an annual maintenance report documenting activities performed under Subsection 18(b)(1)-(3) above, and shall make such report available to Grantee and/or ACOE upon request. (e) When activities are performed pursuant to Subsection 18(c), Grantor its successors and assigns, shall retain, at Grantor's expense, a Biological Monitor to prepare a Restoration Plan and to oversee/monitor such restoration activities. Grantor shall have its Biological Monitor submit a draft Restoration Plan to Grantee and ACOE for review and written approval prior to its implementation. Upon completion of restoration as specified in the approved Restoration Plan, Grantor shall have a Biological Monitor prepare a detailed monitoring report, and Grantor shall make the report available to Grantee and ACOE within thirty (30) days of completion of restoration activities. Grantor, its successors or assigns and Biological Monitor shall sign the monitoring report, and the report shall document the Biological Monitor's name and affiliation, dates Biological Monitor was present on -site, activities observed and their location, Biological Monitor's observations regarding the adequacy of restoration performance by the Grantor, its successors or assigns, or its contractor in accordance with the approved Restoration Plan, corrections recommended and implemented. 19. Intentionally Omitted. 20. Recordation. Grantor shall promptly record this instrument in the official records of Riverside County, California and immediately notify Grantee and the ACOE through the mailing of a conformed copy of the recorded easement. 21. Estoppel Certificate. Upon request, Grantee shall within fifteen (15) days execute and deliver to Grantor, its successors and assigns any document, including an estoppel certificate, which certifies compliance with any obligation of Grantor, its successors and assigns -15- 41308562.7 BF doc 515390-3 contained in this Conservation Easement and otherwise evidences the status of this Conservation Easement as may be requested by Grantor, its successors and assigns. 22. Extinguishment. If circumstances arise in the future that render the Purpose of this Conservation Easement impossible to accomplish, this Conservation Easement can only be terminated or extinguished, in whole or in part, by judicial proceedings in a court of competent jurisdiction. 23. General Provisions. (a) Controlling, Law. The laws of the United States and the State of California, disregarding the conflicts of law principles of such state, shall govern the interpretation and performance of this Conservation Easement. (b) Liberal Construction. Any general rule of construction to the contrary notwithstanding, this Conservation Easement shall be liberally construed in favor of and to effect the purposes of this Conservation Easement and the policy and purpose set forth in California Civil Code Section 815, et seq. If any provision in this instrument is found to be ambiguous, an interpretation consistent with the purposes of this Conservation Easement that would render the provision valid shall be favored over any interpretation that would render it invalid. (c) Severability. If a court of competent jurisdiction voids or invalidates on its face any provision of this Conservation Easement, such action shall not affect the remainder of this Conservation Easement. If a court of competent jurisdiction voids or invalidates the application of any provision of this Conservation Easement to a person or circumstance, such action shall not affect the application of the provision to other persons or circumstances. (d) Entire Agreement. This instrument together with the attached exhibits and any documents referred to herein sets forth the entire agreement of the parties with respect to the Conservation Easement and supersedes all prior discussions, negotiations, understandings, or agreements relating to the Conservation Easement. No alteration or variation of this instrument shall be valid or binding unless contained in an amendment in accordance with Section 17. (e) No Forfeiture. Nothing contained herein will result in a forfeiture or reversion of Grantor's title in any respect. (f) Successors and Assigns. The covenants, terms, conditions, and restrictions of this Conservation Easement shall be binding upon, and inure to the benefit of, the parties hereto and their respective personal representatives, heirs, successors, and assigns and shall constitute a servitude running in perpetuity with the Property. The covenants hereunder benefiting Grantee shall also benefit the ACOE as a third party beneficiary. (g) Termination of Rights and Obligations. Except as otherwise expressly set forth in this Conservation Easement, a party's rights and obligations under this Conservation Easement shall terminate upon transfer of the party's interest in the Conservation Easement or Property (respectively), except that liability for acts or omissions occurring prior to transfer shall survive transfer. -16 41308562.7 BF doc 515390-3 (h) Captions. The captions in this instrument have been inserted solely for convenience of reference and are not a part of this instrument and shall have no effect upon its construction or interpretation. (i) Counterparts. The parties may execute this instrument in two or more counterparts, which shall, in the aggregate, be signed by all parties; each counterpart shall be deemed an original instrument as against any party who has signed it. In the event of any disparity between the counterparts produced, the recorded counterpart shall be controlling. 0) Exhibits. All Exhibits referred to in this Conservation Easement are attached and incorporated herein by reference. (k) Subordination. No breach, enforcement or attempted enforcement of any of the terms, covenants, conditions or restrictions of this Conservation Easement will defeat or render invalid the lien of any mortgage or deed of trust securing a loan made in good faith and for value with respect to the Property; provided, however, that all provisions of this Conservation Easement will be binding upon and effective against any subsequent owner of the Property whose title to the Property or any portion of such is acquired by foreclosure, trust deed sale, or otherwise. Grantor hereby represents to Grantee that, as of the date of this Conservation Easement, the Property is not encumbered with any mortgage, deed of trust or other monetary encumbrance, except for those expressly subordinated to this Conservation Easement and liens for non -delinquent real property taxes and assessments, and that the Property is not subject to any other conservation easement. (1) No Hazardous Materials Liability. Grantor represents and warrants that to Grantor's actual knowledge there has been no release or threatened release of Hazardous Materials (defined below) or underground storage tanks existing, generated, treated, stored, used, released, disposed of, deposited or abandoned in, on, under, or from the Property in violation of applicable Environmental Laws (as defined herein below), or transported to or from or affecting the Property in violation of applicable Environmental Laws. Without limiting the obligations of Grantor under Section I I(b) herein, Grantor hereby releases and agrees to indemnify, protect and hold harmless the ACOE Indemnified Parties (defined in Section 11(b)) against any and all Claims (defined in Section 11(b)) to the extent arising from or connected with any Hazardous Materials used, released, disposed of, deposited or abandoned in, on, under, or from the Property in violation of applicable Environmental Laws or transported to or from or affecting the Property in violation of applicable Environmental Laws from and after the date of this Conservation Easement, except that this release and indemnification shall be inapplicable to the ACOE Indemnified Parties with respect to any Hazardous Materials placed, disposed or released by an ACOE Indemnified Party or to the extent of any Claim due to the negligence of that ACOE Indemnified Party or any of its employees or agents. This release and indemnification includes, without limitation, Claims for (i) injury to or death of any person or physical damage to any property; and (ii) Grantor's violation or alleged violation of, or other failure to comply with, any Environmental Laws. If any action or proceeding is brought against any of the ACOE Indemnified Parties by reason of any such Claim, Grantor shall, at the election of and upon written notice from the applicable ACOE Indemnified Party, defend such action or proceeding by counsel reasonably acceptable to the applicable ACOE Indemnified Party or Parties or -17- 41308562.7 BF doe 515390-3 reimburse the applicable ACOE Indemnified Party or Parties for all charges incurred for the services of the United States Attorney General in defending the action or proceeding. Despite any contrary provision of this Conservation Easement, the parties do not intend this Conservation Easement to be, and this Conservation Easement shall not be, construed such that it creates in or gives to Grantee or ACOE any of the following: (1) The obligations or liabilities of an "owner" or "operator," as those terms are defined and used in Environmental Laws (defined below), including, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (42 U.S.C. Section 9601 et seq.; hereinafter, "CERCLA"); or (2) The obligations or liabilities of a person described in 42 U.S.C. Section 9607(a)(3) or (4); or (3) The obligations of a responsible person under any applicable Environmental Laws; or (4) The right to investigate and remediate any Hazardous Materials associated with the Property; or (5) Any control over Grantor's ability to investigate, remove, remediate or otherwise clean up any Hazardous Materials associated with the Property. The term "Hazardous Materials" includes, without limitation, (a) material that is flammable, explosive or radioactive; (b) petroleum products, including by-products and fractions thereof; and (c) hazardous materials, hazardous wastes, hazardous or toxic substances, or related materials defined in CERCLA; Resource Conservation and Recovery Act (42 U.S.C. 6901 et seq.); the Hazardous Materials Transportation Act (49 U.S.C. Section 5101 et seq.); the Hazardous Waste Control Law (California Health & Safety Code Section 25100 et seq.); the Hazardous Substance Account Act (California Health & Safety Code Section 25300 et seq.), and in the regulations adopted and publications promulgated pursuant to them, or any other applicable federal, state or local laws, ordinances, rules, regulations or orders now in effect or enacted after the date of this Conservation Easement. The term "Environmental Laws" includes, without limitation, any federal, state, local or administrative agency statute, ordinance, rule, regulation, order or requirement relating to pollution, protection of human health or safety, the environment or Hazardous Materials. Grantor represents, warrants and covenants to Grantee and ACOE that Grantor's activities upon and use of the Property will comply with all Environmental Laws. (m) Miscellaneous. In the event of any conflict between the terms of this Conservation Easement and the terms of the Covenants Codes and Restrictions for the Project and any amendments thereto recorded prior to date this Conservation Easement is executed, the terms of this Conservation Easement shall control. IN WITNESS WHEREOF Grantor and Grantee have executed this Conservation -18- 41308562.7 BF doc 515390-3 Easement the day and year first above written and have agreed to be bound by the terms and provisions hereof. STONE EAGLE, LLC, a California limited liability company By: Pacific Hospitality Group, LLC, a California limited liability company Its: Manager By: Timothy R. Busch Its: Chief Executive Officer Approved as to form: CITY OF PALM DESERT, a California municipal corporation By: _ Name: Title: -19- 41308562.7 BF doe 515390-3 CERTIFICATE OF ACCEPTANCE This is to certify that the interest in real property conveyed by the Conservation Easement by Stone Eagle Development, LLC, a Delaware limited liability company, dated _, 2012, to the City of Palm Desert, a California municipal corporation, is accepted by the undersigned officers on behalf of Grantee. GRANTEE: CITY OF PALM DESERT, a California municipal corporation By: _ Name: Title: Date: Attest: By: Name: Title: Date: -20- 41308562.7 BF doc 515390-3 ACKNOWLEDGMENT OF CONSERVATION EASEMENT This is to certify that the interest in the aforesaid Property conveyed by virtue of a deed of trust securing land financing recorded as Instrument No. in the Official Records of the County of Riverside, State of California, is subordinate to and subject to the foregoing Conservation Easement. Dated: , 2012 Us Its: -21- 41308562.7 BF doc 515390-3 State of California } County of On before me, Date Here Insert Name and Title of the Officer personally appeared Place Notary Seal Above State of California } County of } On Date personally appeared before me, Place Notary Seal Above 41308562.7 Name(s) of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. 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. Signature Signature of Notary Public Here Insert Name and Title of the Officer Name(s) of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. 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. Signature Signature of Notary Public State of California } County of } On Date personally appeared before me, Place Notary Seal Above State of California } County of } On Date personally appeared before me, Place Notary Seal Above 41308562.7 Here Insert Name and Title of the Officer Name(s) of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. 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. Signature Signature of Notary Public Here Insert Name and Title of the Officer Name(s) of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. 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. Signature Signature of Notary Public State of California } County of } On Date personally appeared before me, Place Notary Seal Above Here Insert Name and Title of the Officer Name(s) of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. 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. Signature Signature of Notary Public 41308562.7 Exhibit A Legal Description of Property 41308562.7 EXHIBIT "A" LEGAL DESCRIPTION t" PARCEL "A": BEING AN EASEMENT OVER AND ACROSS THAT PORTION OF LOT "A" OF TRACT MAP NO. 30438-1 ON FILE IN BOOK 351 OF MAPS, PAGES 1 THROUGH 4, INCLUSIVE, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA, SECTION 25, TOWNSHIP 5 SOUTH, RANGE 5 EAST, SAN BERNARDINO BASE AND MERIDIAN, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHEAST TERMINUS OF A LINE BEARING NORTH 07030' 12" WEST OF SAID LOT "A". THENCE NORTH 07°30' 12" WEST 55.79 FEET ALONG SAID LINE TO THE POINT OF BEGINNING; THENCE CONTINUING NORTH 070'30' 12" WEST 679.53 FEET; THENCE SOUTH 75°4858" WEST 42.26 FEET; THENCE SOUTH 49046'42" WEST 33A2 FEET; THENCE SOUTH 23012'34" WEST 52.30 FEET; THENCE SOUTH 00043'00" WEST 78.49 FEET; THENCE SOUTH 13009'51" EAST 77.58 FEET; THENCE SOUTH 05026'46" EAST 275.67 FEET; THENCE SOUTH 31°50'27" EAST 127.76 FEET; THENCE SOUTH 49°08'33" EAST 86.71 FELT TO THE POINT OF BEGINNING. SAID ABOVE DESCRIBED PARCEL "A" CONTAINING 1.41 ACRES MORE OR LESS AND AS SHOWN ON ATTACHED EXHIBIT "B", BY THIS REFERENCE BEING MADE A PART HEREOF. PARCEL "B": BEING AN EASEMENT OVER AND ACROSS THAT PORTION OF LOT "A" OF TRACT MAP NO. 30438-1 ON FILE 1N BOOK 351 OF MAPS, PAGES I THROUGH 4, INCLUSIVE, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA, SECTION 25, TOWNSHIP 5 SOUTH, RANGE 5 EAST, SAN BERNARDINO BASE AND MERIDIAN, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHWEST TERMINUS OF A LINE BEARING NORTH 20*11'36" EAST OF SAID LOT "A"; THENCE NORTH 20011'36" EAST 243.63 FEET ALONG SAID LINE TO THE POINT OF BEGINNING; THENCE CONTINUING NORTH 20011'36" EAST 470.61 FEET; THENCE SOUTH 35058'19" WEST 56.38 FEET; C.:Ilbcns+rnts and SrainRs�adarjillt'skJaplSJnne Eagfr1786LV CONS£RIVATION£AS£AI£NTRF.J'ISEI) I2-22-I0.does Page I of 18 EXHIBIT "A" LEGAL DESCRIPTION THENCE SOUTH 83°14'14" WEST 58.32 FEET; THENCE NORTH 84032'01" WEST 92.68 FEET; THENCE SOUTH 88049'53" WEST 48.10 FEET; THENCE SOUTH 38049' 10" WEST 65.78 FEET; THENCE SOUTH 13042'50" WEST 41.40 FEET; THENCE SOUTH 1002753" EAST 210.75 FEET; THENCE SOUTH 22047'35" WEST 53.21 FEET; THENCE SOUTH 71002'20" EAST 33.21 FEET; THENCE SOUTH 77000'43" EAST 39.28 FEET; THENCE SOUTH 47044'28" EAST 44.09 FEET TO THE POINT OF BEGINNING. SAID ABOVE DESCRIBED PARCEL "B" CONTAINING 1.50 ACRES MORE OR LESS AND AS SHOWN ON ATTACHED EXHIBIT "B", BY THIS REFERENCE BEING MADE A PART HEREOF. PARCEL "C": BEING AN EASEMENT OVER AND ACROSS THAT PORTION OF LOT "A" OF TRACT MAP NO. 30438-1 ON FILE IN BOOK 351 OF MAPS, PAGES 1 THROUGH 4, INCLUSIVE, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA, SECTION 25, TOWNSHIP 5 SOUTH, RANGE 5 EAST, SAN BERNARDINO BASE AND MERIDIAN, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHEAST TERMINUS OF A LINE BEARING NORTH 19052'4T' WEST OF SAID LOT "A'; THENCE NORTH 19°52'4T' WEST 60.86 FEET ALONG SAID LINE TO THE POINT OF BEGINNING; THENCE CONTINUING NORTH 19052'47" WEST 68.00 FEET; THENCE SOUTH 31021'46" WEST 3095 FEET; THENCE SOUTH 46° 16'39" EAST 54.28 FEET TO THE POINT OF BEGINNING. SAID ABOVE DESCRIBED PARCEL "C" CONTAINING 820 SQUARE FEET MORE OR LESS AND AS SHOWN ON ATTACHED EXHIBIT "B", BY THIS REFERENCE BEING MADE A PART HEREOF. PARCEL "D": BEING AN EASEMENT OVER AND ACROSS THAT PORTION OF LOT "A" OF TRACT MAP NO. 30438-1 ON FILE IN BOOK 351 OF MAPS, PAGES i THROUGH 4, INCLUSIVE, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA, SECTION 25, TOWNSHIP 5 SOUTH, RANGE 5 EAST, SAN BERNARDINO BASE AND MERIDIAN, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: ciDocumrnn and SeumptodorfiDeAtoplSione &gk178600 CONSERVATION EASEMENT REYISED ll-2I-10.doca Page 2 of 18 EXHIBIT "A" LEGAL DESCRIPTION COMMENCING AT THE NORTHWEST TERMINUS OF A LINE BEARING NORTH 19°52'47" WEST OF SAID LOT "A"; THENCE SOUTH 19052'47" EAST 336.06 FEET ALONG SAID LINE TO THE POINT OF BEGINNING; THENCE SOUTH 09010'02" WEST 21.08 FEET; THENCE SOUTH 11038'22" EAST 64.90 FEET; THENCE SOUTH 25001'42" EAST 48.72 FEET; THENCE SOUTH 33007'30" EAST 53.88 FEET; THENCE SOUTH 53"12'34" EAST 5.13 FEET TO A POINT ON THE EASTERLY LINE OF SAID LOT "A"' THENCE NORTH 19052'47" WEST 187.92 FEET TO THE POINT OF BEGINNING. SAID ABOVE DESCRIBED PARCEL "D" CONTAINING 2,370 SQUARE FEET MORE OR LESS AND AS SHOWN ON ATTACHED EXHIBIT "B", BY THIS REFERENCE BEING MADE A PART HEREOF. PARCEL "E": BEING AN EASEMENT OVER AND ACROSS THAT PORTION OF LOT "A" OF TRACT MAP NO. 30438-1 ON FILE IN BOOK 351 OF MAPS, PAGES I THROUGH 4, INCLUSIVE, RECORDS OF . RIVERSIDE COUNTY, CALIFORNIA, SECTION 25, TOWNSHIP 5 SOUTH, RANGE 5 EAST, SAN' BERNARDINO BASE AND MERIDIAN, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHWEST TERMINUS OF A LINE BEARING NORTH 71011'43" WEST OF SAID LOT "A'; THENCE NORTH 71 o 11'43" WEST 179.30 FEET ALONG SAID LINE TO THE POINT OF BEGINNING; THENCE CONTINUING NORTH 71011'43" WEST 99.66 FEET; THENCE SOUTH 49005*45" EAST 53.55 FEET; THENCE SOUTH 81 *38' 18" EAST 23.65 FEET; THENCE NORTH 7801 ['04" EAST 31.14 FEET TO THE POINT OF BEGINNING. SAID ABOVE DESCRIBED PARCEL "E" CONTAINING 1,124 SQUARE FEET MORE OR LESS AND AS SHOWN ON ATTACHED EXHIBIT `B", BY THIS REFERENCE BEING MADE A PART HEREOF. PARCEL `IF": BEING AN EASEMENT OVER AND ACROSS THAT PORTION OF LOT "A" OF TRACT MAP NO. 30438-1 ON FILE IN BOOK 351 OF MAPS, PAGES 1 THROUGH 4, INCLUSIVE, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA, SECTION 25, TOWNSHIP 5 SOUTH, RANGE 5 EAST, SAN CADmanews and $edingsladojWmkroplSrorte &Viel78600 CONSERYATION EASEAtENT REVISED 12-22-104oa Page 3 of 18 EXHIBIT "A" LEGAL DESCRIPTION BERNARDINO BASE AND MERIDIAN, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHEAST CORNER OF SAID LOT "A", ALSO BEING THE SOUTHEAST CORNER OF SAID SECTION 25; THENCE NORTH 00015'05" WEST 637.92 FEET ALONG THE EASTERLY LINE OF SAID LOT "A" TO AN ANGLE POINT THEREOF; THENCE NORTH 45003'34" WEST 434.66 FEET ALONG THE LOT LINE OF SAID LOT "A'; THENCE SOUTH 07"46'09" EAST 34.63 FEET; THENCE SOUTH 29005'41" EAST 30.59 FEET; THENCE SOUTH 41 °48' 13" EAST 167.37 FEET; THENCE SOUTH 33°28'21" EAST 121.78 FEET; THENCE SOUTH 22037'50" EAST 50.69 FEET; THENCE SOUTH 06000'43" EAST 29.80 FEET; THENCE SOUTH 04036117 WEST 194.38 FEET; THENCE SOUTH 04033'40" EAST 235.46 FEET; THENCE SOUTH 08040'39" WEST 46.54 FEET; THENCE SOUTH 28032'42" WEST 91.43 FEET; THENCE SOUTH 88023'42" WEST 111.02 FEET; THENCE NORTH 68026'20" WEST 180.36 FEET; THENCE SOUTH 85047'30" WEST 255.03•FEET; THENCE SOUTH 18008'49" WEST 47.60 FEET; THENCE NORTH 89003'50" WEST 311.66 FEET; THENCE SOUTH 88949'51" WEST 249.55 FEET; THENCE NORTH 88014'07" WEST 221.64 FEET; THENCE NORTH 83000'09" WEST 48.87 FEET; THENCE NORTH. 89019'12" WEST 215.51 FEET; THENCE NORTH 75007'33" WEST 62.96 FEET; i t C.lDocameatroad SeningsbdorJlDcsktoplStone Eaglr178600 CONSERVA770NEASEMF.NTRRVISED I3•212-/0.docx Pup 4 of 18 EXHIBIT "A" LEGAL DESCRIPTION THENCE NORTH 41019'30" WEST 148.57 FEET; THENCE SOUTH 79009'55" WEST 61.09 FEET; THENCE SOUTH 56003'06" WEST 107.34 FEET; THENCE NORTH 83030'35" WEST 52.67 FEET; THENCE NORTH 64032'54" WEST 49.48 FEET; THENCE NORTH 29039'43" WEST 105.95 FEET; THENCE NORTH 44038'08" WEST 45.42 FEET; THENCE NORTH 1804849" WEST 104.24 FEET; THENCE NORTH 59°30'44" WEST 48.06 FEET; THENCE NORTH 33048'47" WEST 123.87 FEET; THENCE SOUTH 50°35'37" WEST 83.79 FEET; THENCE NORTH 69057' 13" WEST 57.07 FEET; THENCE SOUTH 33024'50" WEST 142.26 FEET; THENCE SOUTH 62013'51" WEST 48.69 FEET; THENCE NORTH 54004' 14" WEST 111.93 FEET; THENCE NORTH 85035'09" WEST 169.78 FEET; THENCE NORTH 70°03'35" WEST 359.82 FEET; THENCE NORTH 81006'10" WEST 57.81 FEET; THENCE NORTH 52039'54" WEST 65.77 FEET; THENCE NORTH 17008'51" WEST 173.02 FEET; THENCE NORTH 64016' 16" EAST 42.78 FEET; THENCE SOUTH 83039'47" EAST 68.54 FEET; THENCE NORTH 20033*58" EAST 47,01 FEET; THENCE NORTH 65001'39" WEST 144.99 FEET; THENCE SOUTH 65°04'28" WEST 119.13 FEET; C:0acnments and SeuingsledorflDrsktoplSmae F.agi.A78600 CONSERYA710MEASEMEN7'REVISED 12-21-IO.doex P28C 5 of 18 EXHIBIT "A" LEGAL DESCRIPTION THENCE NORTH 54°50'59" WEST 146.48 FEET; THENCE NORTH 00°37'47".WEST 125.18 FEET; THENCE NORTH 17°30'38" EAST 192.15 FEET; THENCE NORTH 14017'18" WEST 78.07 FEET; THENCE NORTH 01059'50" EAST 297.82 FEET; THENCE NORTH 40° 10' l5" EAST 115.21 FEET; THENCE NORTH 07057'06" EAST 403.31 FEET; THENCE NORTH 07043'07" WEST 189.66 FEET; THENCE NORTH 00024'06" EAST 197.86 FEET; THENCE NORTH 28023'01" WEST 194.07 FEET; THENCE NORTH 43058'24" WEST 80.28 FEET; THENCE NORTH 11 002'48" EAST 57.46 FEET; THENCE NORTH 34° 16' 15" EAST 67.56 FEET;. THENCE NORTH 77054'41" EAST 78.92 FEET; THENCE SOUTH 77037'52" EAST 166.96 FEET; THENCE SOUTH 68°24'38" EAST 117.85 FEET; THENCE SOUTH 58033'31" EAST 274.37 FEET; THENCE NORTH 72028'30" EAST 39.07 FEET; - THENCE NORTH 32036'07" EAST 128.99 FEET; THENCE NORTH 24010' 19" EAST 161.53 FEET; THENCE NORTH 04043'07" EAST 193.39 FEET; THENCE SOUTH 83023'24" EAST 47.80 FEET; THENCE NORTH 32056'07" EAST 39A8 FEET; a THENCE NORTH 24051'14" WEST40.93 FEET; THENCE NORTH 14034'53" EAST 35.53 FEET; G 1Docnmcnts and SexfngsladoUlDcAmptStome >ei7$600_CONSERViillON F4.VFMF.NT RF.1'/5ED 12-22-10.doct Page 6 of Is EXHIBIT "A" LEGAL DESCRIPTION THENCE SOUTH 88009' 16" EAST 405.77 FEET; THENCE SOUTH 77006'46" EAST 58.59 FEET; THENCE NORTH 71054' 12" EAST 186.22 FEET; THENCE NORTH 83055'51" EAST 32.52 FEET; THENCE NORTH 33°28'51" EAST 38.84 FEET; THENCE NORTH 83024'24" EAST 101.83 FEET; THENCE NORTH 01 038' 14" EAST 24.08 FEET; THENCE NORTH 26037'03" EAST 37.03 FEET; THENCE SOUTH 85°36' 13" EAST 89.72 FEET; THENCE NORTH 30° 10' l2" EAST 182.37 FEET; THENCE NORTH 56050'07" EAST 149.61 FEET; THENCE NORTH 36°10'28" EAST 28.30 FEET; THENCE NORTH 85029' 18" EAST 104.92 FEET; THENCE NORTH 41°12'52" EAST 86.89 FEET; THENCE NORTH 88031'55" EAST 53.69 FEET; THENCE NORTH 71009' 10" EAST 125.75 FEET TO A POINT ON THE NORTH LINE OF SAID LOT ..A.,, THENCE NORTH 71011'43" WEST 337.38 FEET ALONG SAID NORTH LINE TO AN ANGLE POINT THEREIN; ' THENCE SOUTH 69"12'04" WEST 534.48 FEET ALONG THE LOT LINE OF SAID LOT "A" TO A COMMON CORNER WITH LOT "B" AND LOT "C" OF SAID TRACT MAP NO.30438-1; THENCE SOUTH 59°40'01" WEST 1424.10 FEET ALONG THE SOUTH LINE OF SAID LOT "C" TO AN ANGLE POINT THEREIN; THENCE NORTH 72043'30" WEST 470.93 FEET ALONG THE LOT LINE OF SAID LOT "C" TO A COMMON CORNER WITH LOT "A" AND LOT "D" OF SAID TRACT MAP NO.30438-1; THENCE SOUTH 03043'22" EAST 1231.24 FEET ALONG THE WESTERLY LINE OF SAID LOT "A" TO AN ANGLE POINT THEREIN; THENCE SOUTH 30*21' 13" WEST 949,21 FEET ALONG THE WESTERLY LINE OF SAID LOT "A" TO AN ANGLE POINT THEREIN; awac=enls and SeMngsWdorjUvsk vVrmc &xk% 0q CONSERVATION EASEMENT REVISED 12-22-10 A= Page 7 of 19 EXHIBIT "A" LEGAL DESCRIPTION THENCE SOUTH 61017'55" EAST 1889.26 FEET ALONG THE SOUTHWESTERLY LINE OF SAID LOT "A" TO A POINT ON THE SOUTH LINE OF SAID SECTION 25; THENCE SOUTH 89049'44" EAST 2482.43 FEET ALONG SAID SOUTH LINE TO THE POINT OF BEGINNING. SAID ABOVE DESCRIBED PARCEL "F" CONTAINING 39.17 ACRES MORE OR LESS AND AS SHOWN ON ATTACHED EXHIBIT "B", BY THIS REFERENCE BEING MADE A PART HEREOF. PARCEL "G"• BEING AN EASEMENT OVER AND ACROSS THAT PORTION OF LOT "A" OF TRACT MAP NO. 30438-1 ON FILE IN BOOK 351 OF MAPS, PAGES I THROUGH 4, INCLUSIVE, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA, SECTION 25, TOWNSHIP 5 SOUTH, RANGE 5 EAST, SAN BERNARDINO BASE AND MERIDIAN, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE WEST ONE QUARTER CORNER OF SAID SECTION 25; THENCE SOUTH 88°42'10" EAST 1745.13 FEET TO THE POINT OF BEGINNING; THENCE NORTH 50°34'05" EAST 19.50 FEET; THENCE SOUTH 39025'55" EAST 221.87 FEET; THENCE SOUTH 72°09'02" EAST 122.83 FEET; THENCE SOUTH 07019'23" EAST 84.12 FEET; THENCE SOUTH 41038'53" EAST 109.76 FEET; THENCE SOUTH 60050'42" EAST 120.63 FEET; THENCE SOUTH 06007'07" EAST 66.97 FEET; THENCE SOUTH 61012'06" EAST 54.78 FEET; ` THENCE SOUTH 0200720" EAST 64.47 FEET; THENCE SOUTH 59"40'12" EAST It 1.81 FEET; THENCE SOUTH 1300602" EAST 117.09 FEET; THENCE SOUTH 74°34'18" EAST 212.72 FEET; THENCE SOUTH 4000 L'40" EAST 198.57 FEET; THENCE SOUTH 31°OTI9" EAST 165.64 FEET; THENCE SOUTH 1005378" WEST 442.33 FEET; ClD"wnts and 5edingslnd4DesklopMone &,Rfe178600_CONSERVATION EASEAIENT REVISED 12-22-lo.dom Pages of I8 EXHIBIT "A" LEGAL DESCRIPTION THENCE SOUTH 1702617" EAST 142.84 FEET; THENCE SOUTH 09019'42" WEST 161.11 FEET; THENCE SOUTH 22035'52" EAST 315.68 FEET; THENCE SOUTH 64°22'14" EAST67.09 FEET; THENCE SOUTH 11058`56" EAST 85.07 FEET; THENCE SOUTH 78001'04" WEST 19.50 FEET; THENCE NORTH 11*5856" WEST 75.48 FEET; THENCE NORTH 64022'14" WEST 64.94 FEET; THENCE NORTH 22035'52" WEST 328.70 FEET; THENCE NORTH 09019'42" EAST 162.04 FEET; THENCE NORTH 1702637" WEST 143.13 FEET; THENCE NORTH 11003'55" EAST 438.57 FEET; THENCE NORTH 3101178" WEST 158.59 FEET; THENCE NORTH 39002'04" WEST 193.16 FEET; THENCE NORTH 75°3348" WEST 215.71 FEET; THENCE NORTH 14°1074" WEST 121.07 FEET; THENCE NORTH 59°40'11" WEST 114.38 FEET; THENCE NORTH 02*0770" WEST 64.12 FEET; ` THENCE NORTH 61912'06" WEST 53.90 FEET; THENCE NORTH 0600707" WEST 67.05 FEET; THENCE NORTH 60050'42" WEST 113.83 FEET; THENCE NORTH 41038'53" WEST 119.53 FEET; THENCE NORTH 04°54'06" WEST 80.11 FEET; THENCE NORTH 74003'45" WEST 117.65 FEET; THENCE NORTH 39025'55" WEST 227.95 FEET TO THE POINT OF BEGINNING. C 0ocrrmenrs and ScningslarlvrJlDesktoplSrone Eaglet78600 CONSERVATION EASEMENT REVISED 12-22-10.docx Page 9 of 19 EXHIBIT "A" LEGAL DESCRIPTION SAID ABOVE DESCRIBED PARCEL "G" CONTAINING 1.24 ACRES MORE OR LESS AND AS SHOWN ON ATTACHED EXHIBIT "C", BY THIS REFERENCE BEING MADE A PART HEREOF. PARCEL "H": BEING AN EASEMENT OVER AND ACROSS THAT PORTION OF LOT "A" OF TRACT MAP NO. 30438-1 ON FILE IN BOOK 351 OF MAPS, PAGES 1 THROUGH 4, INCLUSIVE, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA, SECTION 25, TOWNSHIP 5 SOUTH, RANGE 5 EAST, SAN BERNARDINO BASE AND MERIDIAN, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE WEST ONE QUARTER CORNER OF SAID SECTION 25, THENCE NORTH 81051'35" EAST 2580.99 FEET TO THE POINT OF BEGINNING; THENCE NORTH 2801843" EAST 22.50 FEET; THENCE SOUTH 61041'l7" EAST 199.33 FEET; THENCE SOUTH 55017'01" EAST 372.71 FEET; THENCE SOUTH 74°1743" EAST 170.70 FEET; THENCE SOUTH 65030'40" EAST 299.04 FEET; THENCE SOUTH 4003737" EAST 271.32 FEET; THENCE SOUTH 7601475" EAST 116.72 FEET; THENCE SOUTH 0901448" EAST 119.89 FEET; THENCE SOUTH 37039'05" EAST 121.69 FEET; THENCE NORTH 66055'10" EAST 249.92 FEET; THENCE SOUTH 5705223" EAST 268.59 FEET; ' THENCE NORTH 77004'25" EAST 77.38 FEET; THENCE SOUTH 41°3646" EAST 274.71 FEET; THENCE SOUTH 48023'14" WEST 22.50 FEET; THENCE NORTH 41 °3646" WEST 261.37 FEET; THENCE SOUTH 7700475" WEST 73.38 FEET; THENCE NORTH 57052'23" WEST 266.16 FEET; THENCE SOUTH 66°55'10" WEST 255.55 FEET; C.•itlomnontsand SeningsladorfiDakroplSrone ftfeI78600- CONSERMTIONFUSAWENTREVISED 11.11.10.docr Wrgo 10 of l s EXHIBIT "A" LEGAL DESCRIPTION THENCE NORTH 37039'05" WEST 144.78 FEET; THENCE NORTH 10050'35" WEST 108.47 FEET; THENCE NORTH 76002'46" WEST 106.43 FEET; THENCE NORTH 40*13-29" WEST 275.88 FEET; THENCE NORTH 65030'40" WEST 292.35 FEET; THENCE NORTH 74°17'43" WEST 172.74 FEET; THENCE NORTH 55017'0V WEST 375.22 FEET; THENCE NORTH 61041'17" WEST 198.07 FEET TO THE POINT OF BEGINNING. SAID ABOVE DESCRIBED PARCEL "H" CONTAINING 1.33 ACRES MORE OR LESS AND AS SHOWN ON ATTACHED EXHIBIT "C", BY THIS REFERENCE BEING MADE A PART HEREOF. PARCEL "I": BEING AN EASEMENT OVER AND ACROSS THAT PORTION OF LOT "A" OF TRACT MAP NO. 30438-1 ON FILE IN BOOK 351 OF MAPS, PAGES I THROUGH 4, INCLUSIVE, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA, SECTION 25, TOWNSHIP 5 SOUTH, RANGE 5 EAST, SAN BERNARDINO BASE AND MERIDIAN, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS COMMENCING AT THE SOUTH ONE QUARTER CORNER OF SAID SECTION 25; THENCE NORTH 09014'14" WEST 345.52 FEET TO THE POINT OF BEGINNING; THENCE NORTH 36032'35" EAST 55.10 FEET; THENCE NORTH 0505249" WEST 56.03 FEET; THENCE NORTH 17053'14" WEST 80.10 FEET; THENCE NORTH 11058'56" EAST 27.65 FEET; THENCE NORTH 81001'55" EAST 63.10 FEET; THENCE SOUTH 81001'55" EAST 31.55 FEET; THENCE SOUTH 6904919" EAST 78.93 FEET; THENCE SOUTH 79013'16" EAST 21.18 FEET; THENCE NORTH 86000'12" EAST 38.61 FEET; THENCE SOUTH 17009'54" EAST 44.09 FEET; C.IDxwornls and Soningstad-flDeskloplStoneFng1c1781f00_CQN58RY.l7lON 1.tSEAfEMRF.Y1SED 12-22.10.docc Page 1 I of ig EXHIBIT "A" LEGAL DESCRIPTION THENCE SOUTH 02012'18" EAST 50.12 FEET; THENCE SOUTH 43*40*05" WEST 46.43 FEET; THENCE SOUTH 35030'58" WEST 46.29 FEET; THENCE SOUTH 5805532" WEST 65.11 FEET; THENCE SOUTH 41022'54" WEST 73.19 FEET; THENCE NORTH 7to15'01" WEST 45.90 FEET; THENCE NORTH 37004'02" WEST 72.12 FEET TO THE POINT OF BEGINNING. SAID ABOVE DESCRIBED PARCEL "I" CONTAINING 1.1 ACRES MORE OR LESS AND AS SHOWN ON ATTACHED EXHIBIT "C", BY THIS REFERENCE BEING MADE A PART HEREOF, PARCEL' 3"• BEING AN EASEMENT OVER AND ACROSS THAT PORTION OF LOT "E" OF TRACT MAP NO. 30438-2 ON FILE IN BOOK 396 OF MAPS, PAGES 82 THROUGH 89, INCLUSIVE, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA, SECTION 31, TOWNSHIP 5 SOUTH, RANGE 6 EAST, SAN BERNARDINO BASE AND MERIDIAN, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHWEST CORNER OF SAID SECTION 31; THENCE SOUTH 82030'32" EAST 453.88 FEET TO THE POINT OF BEGINNING; THENCE SOUTH 86022'15" EAST 34.86 FEET; THENCE SOUTH 7805443" EAST 43.41 FEET; THENCE NORTH 80020'42" EAST 19.30 FEET; THENCE NORTH 25049'58" WEST 15.41 FEET; THENCE NORTH 11018'57" EAST 45.46 FEET; THENCE SOUTH 78041'03" EAST 28.00 FEET; THENCE SOUTH 11*18'57" WEST 36.05 FEET; THENCE SOUTH 2504958" EAST 20.66 FEET; THENCE SOUTH 70°1275" EAST 69.21 FEET; THENCE SOUTH 60"43'16" EAST 63.84 FEET; THENCE SOUTH 7605324" EAST 75.69 FEET; C.•lDmumrnn aad Staingstado►jlUaskroplStone &gfat78600 CONSERYATION USEMENT RMSED 1242J0.docx Page 12 of 18 EXHIBIT "A" LEGAL DESCRIPTION THENCE SOUTH 35"55'45" EAST 42.93 FEET; THENCE SOUTH 31026'33" EAST 26.05 FEET; THENCE SOUTH 6100813" EAST 103.27 FEET; THENCE NORTH 82006'22" EAST 81.38 FEET; THENCE NORTH 0490516" EAST 20.03 FEET; THENCE NORTH 14037'40" EAST 16.02 FEET; THENCE NORTH 02017'31" EAST 17.26 FEET; THENCE NORTH 17012'25" EAST 64.01 FEET; THENCE NORTH 48059'05" EAST 16.05 FEET; THENCE NORTH 18026'38" WEST 17.77 FEET; THENCE NORTH 14°02'36" EAST 33.69 FEET; THENCE NORTH 44021'22" EAST 44.60 FEET; THENCE SOUTH 45038'38" EAST 20.00 FEET; THENCE SOUTH 44°21'22" WEST 39.18 FEET; THENCE SOUTH 14002'36" WEST 22.44 FEET: THENCE SOUTH Ir26'38" EAST 25.29 FEET; THENCE SOUTH 48059'05" WEST 23.71 FEET; THENCE SOUTH 17012'25" WEST 55.70 FEET, THENCE SOUTH 0201731" WEST 16.80 FEET; THENCE SOUTH 14"37'40" WEST 16.34 FEET; THENCE SOUTH 04°05'16" WEST 18.19 FEET; THENCE SOUTH 73016'39" WEST 119.11 FEET; THENCE NORTH 61008'13" WEST 110.70 FEET; THENCE NORTH 31026'33" WEST 32.37 FEET; THENCE NORTH 35"5545" WEST 31.38 FEET; C:IOocunwnu and SepingskedolVesk upiSrone &vglcl7&600_C0NSERI'.I TION EASF.A NT REVISED 12.22.10.dorr Page Q of I8 EXHIBIT "A" LEGAL DESCRIPTION THENCE NORTH 76°53'24" WEST 69.21 FEET; THENCE NORTH 60043'16" WEST 65.49 FEET; THENCE NORTH 700IT25" WEST 68.25 FEET; THENCE SOUTH 80°20'42" WEST 40.82 FEET; THENCE NORTH 7805443" WEST 48.18 FEET; THENCE NORTH 7803000" WEST 35.93 FEET; THENCE NORTH 12032'06" EAST 25.29 FEET TO THE POINT OF BEGINNING. SAID ABOVE DESCRIBED PARCEL "J" CONTAINING 0.5 ACRES MORE OR LESS AND AS SHOWN ON ATTACHED EXHIBIT "C", BY THIS REFERENCE BEING MADE A PART HEREOF. PARCEL 90: BEING AN EASEMENT OVER AND ACROSS THAT PORTION OF LOT "E" OF TRACT MAP NO. 30438-2 ON FILE IN BOOK 396 OF MAPS, PAGES 82 THROUGH 89, INCLUSIVE, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA, SECTION 31, TOWNSHIP 5 SOUTH, RANGE 6 EAST, SAN BERNARDINO BASE AND MERIDIAN, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHWEST CORNER OF LOT "K" OF SAID TRACT MAP NO.30438-2; THENCE SOUTH 61043'46" WEST 27.54 FEET TO THE POINT OF BEGINNING; THENCE SOUTH 02°33'27" WEST 202.88 FEET; THENCE NORTH 86013'09" EAST 219.56 FEET; THENCE SOUTH 87047'55" EAST 94.22 FEET; THENCE NORTH 6902713""EAST 15.47 FEET; THENCE SOUTH 12°5253" EAST 64.97 FEET; THENCE SOUTH 50012'32" EAST 42.41 FEET; THENCE SOUTH 6002605" WEST 77.02 FEET; THENCE NORTH 88007'55" WEST 290.24 FEET; THENCE SOUTH.78°44'20" WEST 258.49 FEET; THENCE NORTH 58050*56" WEST 159.07 FEET; THENCE NORTH 69004'02" EAST 174.61 FEET; C.iNcamentsand Sedingslnd4lDesktoplSlone agle1786Q0 CONSERVATION EASEAIENT MISER 12.22.10 -dorx Page 14 of 18 EXHIBIT "A" LEGAL DESCRIPTION THENCE NORTH 1200038" EAST 216.48 FEET; THENCE NORTH 90*W'00" EAST 172.00 FEET TO THE POINT OF BEGINNING. SAID ABOVE DESCRIBED PARCEL "K" CONTAINING 2,70 ACRES MORE OR LESS AND AS SHOWN ON ATTACHED EXHIBIT "C", BY THIS REFERENCE BEING MADE A PART HEREOF. PARCEL i°L": BEING AN EASEMENT OVER AND ACROSS THAT PORTION OF LOT "E" OF TRACT MAP NO. 30438-2 ON FILE IN BOOK 396 OF MAPS, PAGES 82 THROUGH 89, INCLUSIVE, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA, SECTION 31. TOWNSHIP 5 SOUTH, RANGE 6 EAST, SAN BERNARDINO BASE AND MERIDIAN, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHEAST CORNER Or LOT "K" OF SAID TRACT MAP NO.30438-2; THENCE SOUTH 30002'04" EAST 50.89 FEET TO THE POINT OF BEGINNING; THENCE NORTH 79043*35" EAST 181.41 FEET; THENCE SOUTH 87*58'31" EAST 287.82 FEET; THENCE NORTH 88"06'46" EAST 168.42 FEET; THENCE SOUTH 1100T07" WEST 52.76 FEET; THENCE SOUTH 45015'34" WEST 140.56 FEET; THENCE SOUTH 80022'14" WEST 104.22 FEET; THENCE NORTH 3904016" WEST 79.96 FEET; THENCE NORTH 88045'32" WEST 92.84 FEET; THENCE SOUTH 85040'14" WEST 58.80 FEET; THENCE SOUTH 20033'57" WEST 70.52 FEET; THENCE SOUTH 76010'41" WEST 110.54 FEET; THENCE NORTH 60"28'26" WEST 113.87 FEET; THENCE NORTH 05049' 16" EAST H 8.19 FEET TO THE POINT OF BEGINNING. SAID ABOVE DESCRIBED PARCEL "L" CONTAINING 2.00 ACRES MORE OR LESS AND AS SHOWN ON ATTACHED EXHIBIT "C", BY THIS REFERENCE BEING MADE A PART HEREOF. PAR »: BEING AN EASEMENT OVER AND ACROSS THAT PORTION OF LOT "F" OF TRACT MAP NO. coorumeass and SevingsWorfiDesktopl-Sm ae EajC1, 78600 CONSERVARON EASEUM7 REVISED 12-22-JO .d0rT Pap 15ofIS EXHIBIT 4A" LEGAL DESCRIPTION 30438-2 ON FILE IN BOOK 396 OF MAPS, PAGES 82 THROUGH 89, INCLUSIVE, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA, SECTION 31, TOWNSHIP 5 SOUTH, RANGE 6 EAST, SAN BERNARDINO BASE AND MERIDIAN, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHWEST CORNER OF LOT "L" OF SAID TRACT MAP NO.30438-2; THENCE SOUTH 65"14V7" WEST 64.69 FEET TO THE POINT OF BEGINNING; THENCE SOUTH 18'13'30" WEST 69.69 FEET; THENCE SOUTH 1402745" EAST 190.82 FEET; THENCE. SOUTH 50°39'50" EAST 34.92 FEET; THENCE SOUTH 500 t 10 V WEST 40.07 FEET; THENCE NORTH 33042'13" WEST 86.17 FEET; THENCE NORTH 27°52'00" WEST 174.99 FEET; THENCE NORTH 02°26'16" EAST 59.17 FEET; NORTH 82048' 18" EAST 105.84 FEET TO THE POINT OF BEGINNING. SAID ABOVE DESCRIBED PARCEL "M" CONTAINING 0.43 ACRES MORE OR LESS AND AS SHOWN ON ATTACHED EXHIBIT "C", BY THIS REFERENCE BEING MADE A PART HEREOF. PARCEL "N": BEING AN EASEMENT OVER AND ACROSS THAT PORTION OF LOT "I" OF TRACT MAP NO. 30438-2 ON FILE IN BOOK 396 OF MAPS, PAGES 82 THROUGH 89, INCLUSIVE, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA, SECTION 31, TOWNSHIP 5 SOUTH, RANGE 6 EAST, SAN BERNARDINO BASE AND MERIDIAN, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHWEST CORNER OF SAID LOT "I'; ' THENCE SOUTH 78014'17" EAST 2222 FEET TO THE POINT OF BEGINNING; THENCE NORTH 69°23'54" EAST 247.37 FEET; THENCE SOUTH 76017'01" EAST 31.01 FEET; THENCE NORTH 17038'48" EAST 37.63 FEET; THENCE NORTH 5002941" EAST 41.17 FEET; THENCE SOUTH $0012'32" EAST 41.84 FEET; THENCE SOUTH 01007'22" WEST 119.58 FEET; C.Zomw)rtsand.WingsbdorflDesLsopL%oneFogle178600 CONS£RYATION£ASEM£NTRF_l'lV)LD 0-12-10.doac Page 16 of I8 EXHIBIT "A" LEGAL DESCRIPTION THENCE NORTH 73023'56" WEST 77.60 FEET; THENCE NORTH 88017-28" WEST 56.10 FEET; THENCE SOUTH 73041'59" WEST 199.70 FEET; THENCE NORTH 1805W02" WEST 38.89 FEET TO THE POINT OF BEGINNING. SAID ABOVE DESCRIBED PARCEL "N" CONTAINING 0.51 ACRES MORE OR LESS AND AS SHOWN ON ATTACHED EXHIBIT "C", BY THIS REFERENCE BEING MADE A PART HEREOF. PARCEL °`O"- BEING AN EASEMENT OVER AND ACROSS THAT PORTION OF LOT "I" OF TRACT MAP NO. 30438-2 ON F[LE IN BOOK 396 OF MAPS, PAGES 82 THROUGH 89, INCLUSIVE, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA, SECTION 31, TOWNSHIP 5 SOUTH, RANGE 6 EAST, SAN BERNARDINO BASE AND MERIDIAN, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTHWEST CORNER OF SAID LOT "I", ALSO BEING THE COMMON CORNER OF LOT "I" AND LOT 4 OF SAID TRACT MAP NO.30438-2; THENCE SOUTH 29°51'53" EAST 58.74 FEET TO THE POINT OF BEGINNING; THENCE NORTH 72°5344" EAST 213.33 FEET; THENCE SOUTH 79°21'35" EAST 106.59 FEET; THENCE SOUTH 78031'47" EAST 213.56 FEET; THENCE SOUTH 2501 VI 6" WEST 95.99 FEET; THENCE SOUTH 2905446" WEST 38.64 FEET; THENCE NORTH 44037'02" WEST 98.86 FEET; THENCE NORTH 73007'37" WEST 156.53 FEET; THENCE SOUTH 7702441" WEST 161.21 FEET; THENCE SOUTH 83011'32" WEST 55.43 FEET; THENCE NORTH 29051'53" WEST 52.66 FEET TO THE POINT OF BEGINNING. C.Wommcnrsend ScirinoWarfiDeskloplStone&gle%7$600 CONSERVATIONFASEMNN7'REVISED12-22-10.1(mm Page 17 of 19 EXHIBIT "A" LEGAL DESCRIPTION SAID ABOVE DESCR _ PARC£:I " CONTAINING 0.84 ACRI S IMORE OR LESS AND AS SHOWN ON ATI'A . -IL'•D EX.1�11131T " C"', 1"I'IIIS RCirLRI?NC1:131:1N(:r MAI)Ii A PART IiI:Il1?O1 . 1/1 DOAF Pugarcd unJer the supervision of: � � 1 rJ, i . 1 r _ Date:_1._aL`= N0, 8Q10 ( j _ TT Qf CAt1E Expires i_f31110 STANTEC CONSULTING 73-733 Fred Waring Dr., Suite 100 Palm Desert, CA 92260 (760) 346-9S44 C: lrlucunuvu.c a+rd ,SeetMgS'�nrlu+f thsktapl5loac Ertgk;lRCn11 _CA,ti'Sb'N! :d'r'1r).N r'; LtiF.';t!/•JV'r' Rla'r.5'6r� r: -??- rn . rra�r ('agc 18 or I R 1M U. O N N .e i M F- •� W • / _ llx � lop �h ,,,.. oos I n a . W a < N d 968'+/- c�0 t W CJ O E a N 04 W S � W CJ � Q f f E. . J: LU V D 1/ V Y.JU v 0Y/iIYJV/JJV M � � 2 Ix 1 O N o• z u 0e I.- � V)a V e �c7�d-4 dlm,,c2 ncl N�o H O a ° o� i = Q4Q� Ci o' Q•Q • a r tt Q \ i �m LU �6.06• S � � � a � LU gbh. 1119 g792� ego � p6200 ~16 �� A � Utz 1 ~ ICE tu b 1 1 W � } Lj 4 �}. V t' V Vh�b� � a W w F a mc Cd N O• p UO 1-V�ouNia 141 t4 to-- i�4�3rb w N as V- 3 min m dr o�^o w kin Do `'3 ' � N z 4 ZZ .zaxsz hhht� j 3«05.6S.lON\� ,�• ,a„ io7 Exhibit C Mitigation Plan 41308562.7 US. ARMY CORPS OF ENGINEERS SECTION .404(b)(1) HABITAT MITIGATION AND MONITORING PLAN DIM CREST/STONE EAGLE GOLF COURSE AND RESIDENTIAL PROJECT February A 2004 r -42- X loffAff1#0 US ARMY CORPS OF ENGINEERS 915 WILSHIRE BOULEVARD SUIT 1410 LOS ANGELE9, (A 90017 PREPARED BY: TERRA NOVA PLANNING & RESEARCH INC 400 SOUTH FARREU DRIVE SUITE B-205 PALM SPRINGS, CA 92262 TNr—ity of Palm Aesen QcWStonc Eagle-Sccnon 404(b)(1) MM& February 25, 2004 FABLE OF CONTENTS Page No. A. DESCRIPTION OF THE PROJECTIiNII'ACT SM 3 1. Responsible Parties 2. Crest/Swne Eagle Project %.oration 3. Brief Summary of Crest/Stone Eagle Project 4. Jurisdictional Areas to Be Filled by Habitat Type 5. Type(s),Functions, and Values of the Jurisdictional Areas to be Directly and Indirectly Impacted 6. Assurances of Revegetation Success B.: GOALS OF THE COMPENSATORY MMGATION PROJECT 12 1. Type(s) and Area(s) of Habitat to be Established, Restored, Enhanced and/or Preserved 2. Specific Functions and Values of Habitat Type(s) to be Established, Restored, Enhanced and/or Preserved 3, Time Lapse Between Jurisdictional Impacts and Expected Compensatory Mitigation Success 4. Estimated Total Cost (including all compensatory mitigation site preparation, planting, maintenance, and monitoring 5. Special Aquatic Habitats, Other Waters of the U.S., and Non -Jurisdictional Areas Proposed'as Compensatory Mitigation C. DESCRIPTION OF THE PROPOSED COMPENSATORY MITIGATION SITE 17 1. Location and Size of Compensatory Mitigation Site 2. Ownership Status 3. Existing Functions and Values of the Compensatory Mitigation Site 4. Jurisdictional Delineation 5. Present and Proposed uses of the Compensatory Mitigation site and All Adjacent Areas 6. Referenced Site D. MAINTENANCE ACITIVITM DURING THE MONITORING PERIOD 21 1. Maintenance Activities 2. Responsible Parties 3. Schedule E. . MONITORING PLAN FOR THE COMPENSATORY MITIGATION SffE 23 1. Performance Standards for Target•Dates and Success Criteria 2. Target Functions and Values CYe VStcme EagleSeetion 404(b)(I) HMW February 25, 2004 3, Target Hydrological Regime 4. Target Jurisdictional and Non -Jurisdictional Acreages to be Established, Restored, Enhanced, aadlor Preserved 5. Monitoring Methods . 6. •Monitoring Schedule 7. Annual Mouitoring.Reppris F. COMPLETION OF'COMPENSATORY MITIGATION 28 1. Notification of Completion 2. Agency Confirmation G. CONTINGENCY MEASURES 24 1. Initiating Procedures 2. Alternative Locations for Contingency Compensatory Ntigation 3. Funding Mechanism 4. Responsible Parties APNNDIX A: EX1 ITS A. Regional Map B. Vicinity Map C. ' Aerial View of Planning Area D 1. Proposed I mpacts/Lower Bruce & Ramon Creek D2. Proposed J]mpacWUpper Bntee Creek El. Pennanent Impacts to Desert Dry Wash Woodland2ower Bruce & Ramon Creek E2. Penance Enpacts to Desert Dry Wash Woodland/Upper Bruce Creek Pl. On -Site Daeri Dry Wash Woodland Mitigation/Lower Bruce & Ramon Creek k. On -Site Desert Dry Wash Woodland Ntigation/Upper Bruce & Ramon Creek F3. Off -Site Desert Dry Wash Woodland Mid gation Area G1. Residential Landscape Zones . G2. Golf Course Landscape Zones •G3. Typical Landscaping— Base Reveg Zone G4, Typical Landscaping —Enhanced Reveg Zone 05. Typical Landscaping— Arroyo Zone 06. Typical Landscaping — Oasis Zone G7. Typical Landscaping — Golf Holes Zone Hl. Off -Site Mitigation (Duorley Property) II2. 'Off -Site Mitigation (Haystack Property) Off -Site Mitigation (HaystacklAmlanco Property) H4. Off -Site Mitigation (Dick Property) Hl. Off -Site Mitigation (Egan Property) APPENDIX B: PROPOSED PLANT PALETTE 2 TN/Chy of Palm Desert Crest/Stme Eagle -Section 404(b)(1) EW Pebrany 25, 200E A. • DESCRIPTION OF TlE[E PROJECrAWACT SITE 1. Mpbasible Parties Ted Lennon President, Stone Eagle LLC Sr. V.P., Destination Development Corporation 74-Wl Reserve Drive Indian Wells, CA 92210 (760) 779-1646 2. Crest/Stone Eagle Project Location The CrestlStone Eagle project site is comptjsed of two planning areas, totalling approximately 703± acres, referred to herein as Planning Areas "A" and "B". Planning Area A is the easternmost portion of the project site and extends west from State Mghway 74, across the Coachella Valley 'Water District's Palm 'Valley $tonnwater Channel, and continues westward into the low-lying foothills of the Santa Rosa Mountains (see Exhibits A, B and C of Appendix A). Accese to the site will be from Highway 74 and a bridge that will. cross the stormwaw channel and will acquire an encroachment permit from CalTrans and the Coachella Valley WaterDistrict. Planning Ama'A encompasses 63t acres and is planned for a_ruaximtmu of sixty (60) dwelling units, with current City approvals for 44 single family homes and approved 'Development Agreernent to allow up to the aforementioned 60 units. The golf clubhouse and golf maintenance buildings and facilities are also planned for development in Planning Area A. Planniing Area A can also be described as a portion of Section 31, Township 5 South, Range 6 East, San Bernardino Baseline and Meridian. Planning Area B is located directly northwest of Planning Area A in the City's Sphere of Influence, includes all of Section 255 and encompasses approximately 640 acres, of which approximately 250± acres arc proposed for development as an 18-hole championship golf course, practice hole and driving range, with comfort stations and an equipment storage facility. Access to the golf course will be through Planning Area A and an easement on an adjoining lot. Planning Area B can also be described as Section 25, Township 5 South, Range S.East, San Bernardino Baseline and Meridian. Access is provided to Section 25 by an easement through and adjoining five -acre parcel located in the northwest one -quarter of Section 36, Township 5 South, Range 5 East. Latitude and Longitude Planning Area A: Latitude 33' 37' 28", Longitude 116' 24' Planning Area B: latitude 33' 37' 30", Longitude 1160 25' 3 r,. TN/Cityof Palm Deseat Crest/Stonc Eagle -Section 404(b)(1) Me Februsuy 25, 2004 3. Swnmary of Overall I}roject Residential Component The residential component of this project consists of a maximum of 60 attached and/or detached dwellings units located in Planning Area A (see description of planning areas in A_l, above), the easternmost portion of the project development. Dwellings are largely single story,,although some units could be two stories. A11 residences are planned in a village atmosphere with a careful integration of native desert environment ,and water features. The development plan will encourage the use of consolidated•on-site parking and electric vehicles within the project. The residential portion of the project also incorporates community swimming pools and associated amenities. Recreational Component In the Preferred -project, the principle recreational component of this project, located primarily in Manning Area .B (Section 25), includes an 18-hole championship golf course and associated starter facilities, open-air pavilion, equipment storage, and comfort stations. CIubhouse and golf course maintenance facilities are to be located in Planning Area A. An undisturbed open apace area of .approximately 390t acres adjoins the golf course on the east, west and north, and is planned to remain as open space. The activity involves modifications to drainages and desert dry wash areas. determined to be Jurisdictional waters of the United States. The purpose of these modifications is to protect building sites from flooding and sediment deposition during large flood events. The project proposes minor modifications of upstream drainages within Bruce and Ramon Creeks in Section 25, Township 5 South, Range 5 East, San Bernardino Baseline and Meridian. The project also includes -the construction of a system of water and sediment control on the lower portions of Bruce and Ramon Creeks in Section 31, Township 5 South, Range 6 East, San Bernardino Baseline and Meridian. Project Timeline ' • Project start date (golf course): Spring/Early Summer 2004 • Golf course completion: Fall 2005 • Golf.Clubhouse completion: Fall 2007 • Residential component start date: Pill 2005 • Project buildout (residential component): Expected to be complete by Fall 2008 4. Jurisdictional Areas to be killed by Habitat Type Jurisdictional Waters within 'the Crest/Stone Eagle Project Area Tnrpacted By Project Development The following three tables summarize permanent and temporary project impacts to Ramon Creek and Bruce Creek Washes within the Crest/Stone Eagle project area. Impacts requiring rnidgadon are shown on Exhibits DI and D2 of Appendix A attached at the end of this document. These areas have been calculated through consultation with the U.S. Army Corps of Engineers, the U.S. Fish and Wildlife Service and the California Department of Fish &. Game. Calculated impact areas have been provided to these agencies and mitigation has been offered to off -set impacts. A 4 MWdly of Palm biscrt CresdSwneEagle Section 404(b)(1)10&a February 25, 2004 complete list of witigation measures is included in the 404(b)(I1 Evaluation Public-IntZ=t Review. Table 1 Project impacts to Ramon Creek Wash Arent Area Volume of Dill Type of FLU Type of Land {Acres) (Cubic Yards) LmEact 3. Flow Control Weir • 0.01 16 Rock, Concrete Permanent 5_ Golf Maintenance .2.00 32,267 Soil, Rock, Concrete Permanent BuildinglYard 6. Road & Entry 0.70 27,427 Soil, Rock, Concrete Permanent 6.A. Ramon Tributaries' 0.50. 726 Soil, Rock, Concrete Permanent Total Permanent 3.21 Impacts 1.Offsite ,Arroyo 0.45 0 N.A. Temporary 2. Arroyo 5'6 0.45 0 N-k Temporary, 4. Arroyo 54 1.10 0 N.A- Temporary4 Total Temporary 2.00 Impacts TOTAL 5.214 60,43E Area Identification Nowliers correspond to locations on Exfubits DI and D2 of Appendix A. n Standard grading cquipmeat appropriate for the work planned wU16e used within the wash for excavation and placement of fill. 1 Minvr temporary disturbance to offsite areas is anticipated 4-Temporary impact arras will be restored to native vcgetadon. 3-Arroyo will be graded b provide sediment storage, then replanted with native vegetation c Includes bank stabilixatioo to be designed. Includes various tributaries of the Raruon Crock drainage as determined by the Corps (not illustrated). Sou Pacific Advanced Civil Engineering. Inc. (PACE) prepared for Lowe Reserve Corporation. May 6, 2002 Rev. 6/4/02, 6/19/02. 5 TN/City of Palm Desert Qr,St/Stone FAglo- =dDn 404(bxl)iIMW February 25, 2004 . , Tablet Project Impacts to Bruce Creek Wash Volume of Axea bill (Cubic Type of . Areal (Acres) Yards) Tvne of Fil12 land 1u>pact 7. Swimming Pool 0.05 161 Soil, Rock, Concrete Pemmanent 9. Footpath 1 0.02 65 Rock, Concrete Permanent 1 I. Water Feature' 0.51. 1,210 Rock, Concrete Permanent 12, Lakes 1.29 3,227 Soil, Concrete Permanent Aggregate, Concrete, 13. Rod 0.05 726 Soil Permanent 15. Residential Development, 4.72 56,467 Soil Permanent 16. Sediment Basin (GC)" 1.15 0 N.A.* Permanent 17..Sediment Basin Levee 0.88 14,520 Soil, Concrete Permanent I8 Golf Cotnrse(tributaries)" 0.50 11200 Soil Permanent Total kermanent Impacts 9,17 8, Axroyo 3 0.74 0 N.A. Temporary, 10. Arroyo6 0.52 0 N.A. Temporary, 14 Arroyo10 0.19 0 N.A. Tempa�r�a Total Temporary Impacts L45 TOM 10.62 77,575 Area Identification Numbers correspond to locations on Exhibits DI and D2 of Appendix A Standard grading equipment appropriate for the work planned will be used within the wash for excavation and placement of fill. 3 This portion of the Arroyo will be graded to provide sediment retention during minor storms. ° Impact areas will be regraded and planted with native vegetation. 3 Path made of rock and concrete. Also provides flow control during storms. o Includes 580'of grouted rock (or equivalent) bank stabilization. ' Water feature will include concrete (or equivalent) lining on the bottom and the banks, and will incorporate rumped ornamental water and landscaping, Feature will convey floods. Lake bottom will be lined with a synthetic membrane liner under it of soil sediment to permit heavy equipment • access for sediment removal following major storms. Lake serves as flood conveyance and Cement retention basin , during major floods. 9 Road crossing will consist of a 24' wide road over three 6' arched culverts (or equivalent) witb concrete bottoms and ®ravel fill between culverts. 19 Area, will serve as staging area for sedimontrcmoval from the lake following major storms. Native vegetation will be restored following disturbance. tr Sediment basin will retain sediment during maiorstorms. Basin will be planted with native vegetation. Sources Pacific Advanced Civil Engineering, free. (PACB) prepared for Lowe Reserve Corporation, May 6, 2002. Rev.614102 6/19102. r� W - M -fty of Palm Desert CrestlStone EagieSectlba 404(bXl)1T1vW Febrimy 25, 2004 Table 3 Summary of Permanent and Temporary bnpacts PUmon and Bruce Creek Wash Total Permanent impacts (acres) Ramon Creek 3.21 Bruce Creek 9.17 Total Permanent ITEacts 17.38 Total Temporary bWaets (acres) Ramon Creek — 2.00 Bruce Creek 1.45 Total 'X Morary Impacts 3.45 TOTAL IMPACTS IS.83 h ' 5. Type, ktunctions and Values of the Jurisdictional Areas Directly and Indirectly Impacted Tables-4 through b in Section BA, below, list on and off -site mitigation lands, mitigation ratios, and acreage for each habitat type to be impacted. Functions, values, and baseline information for the impacted areas are discussed below with regard to water quality, habitat, hydrology, -and soils, as suggested in the US Army Corps of Engineers 111P Guidelines. These impacts have been thoroughly analyzed, in accordance with the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000-21177) and CEQA 'Guidelines of 1998 (California Code of Regulations Section 15000 et seq.), as amended, in the Crest/Stone Eagle Subsequent Environmental Impact Report (SE1lt) (SCH 199102034). The Crest/Stone Eagle Final SEIR was certified by the City of Palm Desert on October 24, 2002, and is hereby incorporated by reference into this document. . Watg�,Quality Soils present in the lower portions of Bruce Creek and Ramon Creek arc primarily Riverwash and Carsitas type soils; characterized by stony, cobbly, and gravelly coarse sand with minor amounts of fine material, or by the presence of cobbles and sand on the surface as well as within the soil profile. Based on these soil types, suspended particulates, with the exception of very fine material, will largely fall out prior to reaching the concrete -lined Palm Valley Soormwater Channel, into which stormwater runoff will discharge- From there stormwater will flow into the soft -bottomed Whitewater River where there will be further opportunity for stormwater to precipitate out. Therefore, stormwater runoff from the project is expected to generate very little or no suspended particulates, and no turbidity, for either the Crest/Stone Eagle preferred project or either of the project alternatives. A 401 Water Quality Standards Certification (dated December 18, 2003) has been issued for this project by the Colorado River Basin Regional Water Quality Control Board., The 401 certification includes a Best Management Practices&tegramd Pest Management Plan 7 TNICity of Palm Desert ' CrestlStone F4eSecdon 40gb)(1) HbW February 25,2004 (BMP/Z4P), which effectively eliminates the'discharge of fertilizers, herbicides and pesticides into surfacewaters and ground water. The stormwater riianagement system designed for the Crest/Stone Eagle project will conform to National Pollutamt Discharge Elimination System (NPDES) standards. The 401 Water Quality Standards. Permit Application, -including the BMPAIT, and certification, has been provided to the Corps. Portions of the subject pioperty are located *within the foothills of the Santa Rosa Mountains, which serve as an effective groundwater barrier. Therefore, the Whitewater River subbasin does not directly underlie the upper elevations of the subject property. The subject property is, however, immediately adjacent.to the southerly limits of the Whitewater River subbasin. Within the CrestlStone Eagle project, on -like stormwater detention facilities will provide an opportunity for percolation and passage- of irrigation through underlying soil and rock, also providing further filtration and bio-remediation. There is expected to be very limited incidental runoff from any kind of irrigation. The project incorporates a limited irrigation area, using about 66 percent of the turf area that is typical of golf course development. In addition, design of the stormwater system will enhance the detention and percolation of stormwater runoff before it reaches the concrete lined Palm Valley Stormwater Channel. Any stormwater runoff that does -reach the channel will then discharge into the soft -bottomed Whitewater River, which will provide additional opportunities for percolation Bruce Creek and Ramon Creek are dry ephemeral washes. Water is'ptesent in these washes only during storm events in the upper watershed generating sufficiently intense rainfall to exceed rates of percolation within the watershed. Based on field surveys'it appears that'it has been several years since storm flows have occurred in this area. Them are no jurisdictional wetlands present on the development portion of the CrestI tone Eagle project site. As previously noted, in order to protect building sites from the flooding and sediment deposition during large flood events it will be necessary to construct a system of water and sediment control features on Bruce Creek and Ramon Creek. Ramon Creek has a watershed of approximately 0.56 square miles, and Bruce Creek has a watershed of approximately 1.15 square miles. Each creek runs through incised channels and canyons that end near the lower edge of. the project site, adjacent to the Palm Valley Stormwater Channel. The project site and the two watersheds that drain ffimugh the site are cumntly undeveloped, but have been somewhat impacted by off -highway vehicle use and dumping. The proposed Cmst/Stone Eagle project improvements will impact a limited portion of the site, and are not expected to have a significant impact on stormwater peak flow rate, storrrtwater volume, or debris yield from large events like the 100-year and standard project floods. 'Engineer's Reporton Plater Supply and Replenishment Assessment 200112002,'prepared by Water Reso=w Branch, Engimonng Department, Coachella Valley Water District; April 2001, 8 ' .: . • ... � . .. . • • / TN/City of Palm Deseri 'CxsMone Eagle -Section 404(bxl) HI4tW February 25, 2004 The eastern portion of the project site is adjacent to the Palm Valley Stormwater Channel,. owned by the Coachella Valley Water District (CVWD), which serves as the downstream drain for all surface runoff that leaves the site. This drainage is a sloping concrete channel with hard bottom, and CVWD regulations limit the discharge of stotmwater and sediment to the channel. Under current conditions, runoff and sediment from the project site and tributary watersheds enters the Palm Valley Channel via concrete side inlet weirs_ Each of the two project watersheds has a weir to allow inflow to the channel. These weirs -will continue to be used after development of the Crest/Stone Eagle project. It is anticipated that the peak stonmwater discharge rate from each of the two watersheds will be equal to or less than the peak flow rate with existing conditions, and discharge over each weir will be limited to a rate acceptable to CVWD. CVWD' allows a :discharge rate into the Palm Valley Channel not to exceed 5 efs per linear foot of weir, and prefers that discharge be limited to 2 cfs per foot of weir. The Crest/Stone Eagle project incorporates, stormwater detention and desilting facilities that will reduce impacts on the CVWD channel. Hahitat There is no standing water or jurisdictional wetlands on the development portions of -the Crest/Stone Eagle project site, nor is there habitat capable of supporting fish or other aquatic organisms. Bruce Creek and Ramon Creek are ephemeral, dry desert streams_ A biological survey was conducted by AMEC Earth and Environmental (AM.EC) biologists on the Crest/Stone Eagle development site in the Fall of 2001-and in March and April of 2002.2 The survey included a literature review and field assessment, including a detailed site survey for Desert Tortoise (Gophaus• agassizt). A complete copy .of the study has been included with the Departmmt of the Army permit application previously filed with the CORPS, and is also included in the appendices of the CrestlStone Eagle SETit, also previously provided the CORPS. The survey includes a complete species list. PenujarJ3jgh0m Sheen Most of the subject property is located within "Critical Habitat" for Peninsular Bighorn Sheep (PBS), as designated by the U.S. Fish and Wildlife Service; with the exception of that portion of the site located east of the -Palm Valley Stormwater Channel. This species is Federally listed as Endangered, and State listed as Threatened. Telemetry data collected on the Northern Santa Rosa herd since the early 1980s shows occasional sheep observations in the northwest. portion of Section 25 but outside the area proposed for golf development. Although bighorn sheep have been known to utilize portions of the site for foraging, it is not considered a heavy use area. Nonetheless, golf course development in Section 25 will have an iricrergdntal, limited impact on regional habitat for bighorn sheep. Off -site compensatory mitigation lands have been approved by the California Department of Fish and Game (MFG) and the U.S. Fish and Wildlife Service (USFWS). As noted above, the golf course plan avoids impacts to the two seeps located in Section 25, with both seeps to be located outside the fenced area. These seeps do not have free water and their z "Biological Stmey of the Crass Ikvelopment Site, Riverside County, California," prepared by AMC Earth and Environmental, Inc., blay2002. 9 T AUCity of Palm Desert Crest/Stone EaSk Section 404(b)(1) HMW February 25, 2004 locations close to residential development in the Cahu9lla Hulls makes them undesirable for sheep. use. The proposed golf course fence is designed to isolate the golf course from bighorn sheep, leaving approximately 390a- acres in Section 25 that will remain untouched and available to and protected for wildlife, including sheep, and will be monitored and protected from current adverse impacts from roaming pets slid extensive off -road vehicle use. Desert Tortoise The proposed development areas were surveyed for the presence of federal and state listed Threatened Desert Tortoise in accordance with prevailing federal protocol. A February 1990 tortoise survey (ERC 1991) found a one to two. year old cardass in Section 25 -but no other tortoise sign. The 1991 ERC surveyors postulated that the carcass may have represented an escaped captive from the neighboring houses in the Cahuilla Hills development. The Spring 2002 survey, biologists for which concurred with the. "escaped tortoise" hypothesis, only dfxeeted a single Class 4 burrow in the south-central portion of Section 25, which showed no sign of recent use *and was determined to be "quite old". A Class 4 burrow is defined as being of deteriorated condition, and having been spa siblY dug by a tortoise, The extremely rugged and rocky terrain present over most of the site represents low quality habitat. Impacts from surrounding development has also further degraded the litnited value of this habitat. Potential impacts to Desert'tortoise are considered minimal, if non-existent During the course of project'design, the developer has conferred with representatives of the US. Fish and Wildlife Service, California Department of•Fish and Game and the Bighorn Institute to assure a plan that minimizes impacts• to wildlife and their habitat. As a result of these consultations, an extensive mitigation program has been developed to address potential impacts - to sensitive species and habitats. Elant Communities The CDFG and USFWS have. determined that the project site impacts very limited areas of desert scrub (3.6 acres) and desert dry wash (tnicrophyll) woodland (8.5 acres), The portion of lower Ramon Creek -which will be filled to support construction of maintenance building as• well as an area where the project developer may enhance storm water detention, are characterized by project biologists and California Department of Fish & Game as desert scrub, rather than microphyll woodland. These areas of impact are illustrated in Appendix A on Exhibit E1 and E2 included with this document. A 1603 Streambed Alteration Agreement has been issued for this project, .A copy of this agreement has been provided to the Corp§. The agreement sets 'forth. provisions and requirements, to mitigate project impacts to peninsular bighorn sheep, desert dry wash (microphylt) woodland, and desert scrub habitats. These measures are hither discussed in Sections E and F, below. The 1603 Streambed Alteration Agreement is hereby incorporated by reference into this document. The USPWS Biological Opinion (BO) issued for this project on November 7, 2003 includes the Service's analysis of the project's effects on PBS and Desert Tortoise. A copy of this agreement has been provided to the Corps. The BO further sets forth mitigation requirements for off -site mitigation lands that the project applicant must acquire to compensate for loss of on -site PBS 10 TN City of Palm Desert Crest/Stone Eagle -Section 40OXl)/�,,IP IIuI/A February 25, 2y+I�� � and Desert Tortoise habitat, as� well as dry wash woodland and desert scrub plant communities. These requirements are further discussed in Sectipas E and F, below. The DO is hereby incorporated by reference into this document. Hyilroloey As previously discussed, drainage facilities designed to .adequately inanage and convey stormwater runoff throughout the project site will be constructed at the site development. The system will incorporate t series of stormwater and sediment control feattires that convey stormwater and sediment along existing and modified natural drainages of Bruce. Creels and Ramon ,Creek. Storrawater but not sediment will be conveyed and discharged into the Palm Valley Stormwater Channel, which occurs along the project'.s eastern boundary. The project is not expected to have a considerable or significant cumulative impact 10 the major drainage facilities serving the area.•Tht planned development is anticipated to create no increase in stormwater volume, peak discharge rate, or sediment yield from large floods such as the 100- year and standard project flood. The flood and sediment control facilities for the project are designed to eliminate sediment discharge to the Palm Valley Stormwater Channel and to limit stormwater discharge at or below existing levels and below rate of discharged limits imposed by Coachella Valley Water District 3 SOiJ The soils in the upper reaches of -Ramon- Creels and Bruce Creek are comprised primarily of.. . Rock Outcrop (RO) and Rock Outcrop Uthic Torrispsamments complex (RT). As noted in the Riverside County Soil Survey, Coachella Valley Area,4 these soils have a low soil horizon. Soils generated by erosion are quickly transported down into lower canyon areas. The relevant soil horizons occur in the mouth of the lower reaches of Bruce and Ramon Creek Within these areas, soils are primarily comprised of Riverwash (RA) and Carsitas (ChC). Riverwash is a water -deposited stony, cobbey, and gravelly coarse sand. This soil is found in and adjacent to stream channels, and contains minor amounts of fine material, but is primarily comprised of sand, gravel and cobbles, with occasional boulders of up to three feet. Carsitas soils typically occur on slopes of 2 to 9 percent. Cobbles and sand are found on the surface as well as within the soil profile. There, are no jurisdictional wetlands occurring within the project, site- The soils found on the. project site are well drained, and as discussed in Section A.4, portions are supporting a limited microphyll woodland. It should be noted that the portion of lower Ramon Creek which will be filled to support construction of maintenance building, as well as an area where the project developer may enhance storm water detention, are characterized by project biologists and California Department of Fish 8c Game as desert scrub, rather than microphyll woodland. s " Usting Conditions Hydrology & Sediment Yield Analysis for the Crest Project Site," Palm Desert, RiversidtCounty, Californisr, prcparcd for Lowe Reserve Corporation, Pacific Advanced Civil Engineering, June,20M 4 "Soir Survey of Riverside County, California, Coachella Valley Area," prepared by US Dept. of Agriculture Soil Conservation Service, September,1980. 11 TNICity of Palm Desert Crest/Stono Eagje•Seetion 400)(1) HMMP Bebruuy 25, 2004 B: • GOALS OF THE COMPENSATORY IMGATZON PROJECT -Type(s) and Area(s) of Habitat to be Established, Restored, Enhanced andlor Preserved As• set forth in the USFWS Biological Opinion, the project proponent will transfer title or. provide a conservation easement to approximately 500± acres of bighorn sheep habitat'irr the ' Nortbern Santa Rosa Recovery Region. The final and exact number of acres required to be conserved shall.equal twice the number of acres fenced as part of the proposed golf course. in addition to or as a part of the acquisition of bighorn sheep habitat, depending on whether the acquired area affords suitable habitat for desert tortoise, the 250t acres of tortoise habitat on the proposed golf course sits will be replaced at a 1:1 ratio, Additionally, the project proponent will purchase 10D± acres of desert scrub and dry wash woodland in the Martinez Canyon area to offset impacts to these plant communities and desert tortoise -in planning Area A. This acquisition also cotild •eontrlbute to the 1:1 replacement of tortoise habitat agreed to above if the area•provides suitable habitat for the species, The purchase of this'propeM will also benefit bighorn sheep in the Central Santa Rosa Recovery Region. Together with the on -site lands in Section 25,.appr9ximately 1,000 acres would be protected in perpetuity by the Service (see Appendix A Exhibit F3 and Exhibits 1 through 5 illustrating -the off -site mitigation parcels). Table 4 - - - On -Site Plant Community Mitieation - Upper Ramon Creek DesectDry Wash Woodland 1.33 3:1- Lower Ramon Crock Desert Dry Wash Woodland 427 3:1 Upper Bruce Creek Desert Dry Wash Woodland 334 3:1 Lower Bruce Creek Desert Ihy Wash Woodland 0,63 3:1 1)DWW Subtotal 8.37 3:1 Lower Bn= CreeVLower Ramon Creek, Desert Scrub 3.60 1:1 Ramon Creek Tributaries Desert Scrub 3.00 1:1 DS Subtotal 6.68 1:1 Total 15.17 r b itigadon ratio as detumiited by Califbmia Dept. of Fish no Game In the project 1603 Sucanind Alteration AgUMML Mitigation requirements for Desert Dry Wash (rniczophyll) Woodland will be -met duough ro-vcgcWon of raged areas on- ' site, and acquisition of of[ site compensatory mitigation iands.as shown in Table 6. Source: Pacific Advanced Civil Eagineering, December 18, 2003. 12 f T NlCity of Palm Desert Crest!Stone EagleSoction 404(b)(1} HIv11e1P February 25, 2004 Table 5 -OnSite Wildlife Mitigation Location Type of Habitat Approximate Mitigation Ratio/Acreage Acreael Requirementsz Section 25 PenimularBighorn Sheep _ 390 390 idStigation required is as determined by CDFG in the Crest/Stow Eagle 1603 5treamhed Altpcation Agreement and i1SFws in the Creston Fagk Biological Opinion. Anal and exact number of awes required to be conserved off -site shall I equal twice the number of acres fenced as part of the proposed golf coarse•• See Tabk 6 for offsite mitigation lands to complete these jequirements. For on -site mitigation lauds in Section 25. project proponent will transfer title or provide conservation easement to Coachella Valley Mountains Conservancy or other appropriate endly in perpetuity. Source: Crest/Stone Eagle 1603 Streambed Alteration Agreement (CDF% Table 6 Approved Off -Site Mitigation Sites Parcel Name/No. Type of HabitatkA Acreage • . Doorley APH 685••130-M Peninsular Bighorn Shoop 160.00 AFN 686-120-M Peninsular Bighorn Sheep 22.23 Haysiack APN 635-030-009 Peninsular Bighorn Sheep 158.25 Desert Tortoise HaysWVAmlanco APN 635-030-012 Peninsular Bighorh Sheep 15638 Dick APN 753-340-008 Desert Dry Wash Woodland 100.0w Desert Scrub Desertrortoisc EPn AFN 635-430-Ml Peninsular Bighorn Sheep 100.60 Desert Tertoise 697AS . • .Acquisition of AFN 753-340-003 could also contribute to the 1:1 replacement of tortoise habitat it the area provides suitable habitat for the species. The purchase of this property will also benefit bighorn sheep in the Central Santa Rosa liecovt:ry Region. 2 Final and exact number of acres required to be conserved off -rile shall equal twice the number of acres fenced as part of the proposed golf course. Based on golf course at 250 acres. Mitigation ratiostrequired acreages as follows: Desert Dry Wash Woodland 3.1 (1:1 restored on -site, 2:1 off -site); Desert Saab 1:1 (restored on -site, with &pproximately 6.6 acrs additional DS habitat provided off -site): Desert Tortoise 1.1, or 250 acres (requirement met with lands on and off -site): PBS 2:1, or 500 acres (twice the number of acres fenced for golf course; requirement met with lands on and off -site)- 'of the100,00 acres on the'Dick property, approximately 48.3 acres have been estimated to be waters of the U.S. comprised of 41.7 acres of desert dry wash woodland, and 6.6 acres of desert scrub. 'Egan property not fisted in Biological 001tdon; approved by Guy Wagner (USFWS) and Eddie mono (C DFG). a Of these properties, or other Corps and Service approved parcels, the project applicant plans to acquire a subset that will total a minimum of 541.07 atrzs, subject to regulatory agency approval, Source: Destination Development Corporation, December 2003, As shown in the preceding tables, total mitigation lands consist of on and off -site habitat. Dedication/restoration of these on -site lands, in conjunction with acquisition of the approved off - site Mitigation lands, will comply with requirements set forth by the U.S- Fish and Wildlife Servile in the Crest/Stone Eagle Biological Opinion and the California Department of Fish and 13 j' • TN/City of Palm Desert Crest/Stone Eagle -Section 404(bXl) BMW FeNuary25, 2004 Game in the Crest/Stone Eigle 1603 Streambed Alteration Agreement. Six off site properties are currently being considered and. are Approved by •USFVVS for conservation of open space preservations (see Exhibit F3 and Exhibits 1 tfuough'5). Of these properties an estimated jurisdiefional delineation of waters of the U.S. was done on the Dick.property because it exhibited the highest abundance of waters of the U.S. As set forth in the Department of the Army Permit and the Biological Opinion for this project, the permittee shall acquire and tword a conservation easement over a subset of the initigation land parcels listed in Table 6, or other Carps and Service approved substitute parcels, that will total a minimum of 541,07 acres. 2. Specific Etinetions and Valves of Habitat Type(s) to be Established, Restored, Enhanced and/or )Preserved Habitat to be established, restored, enhanced and/or preserved consists of desert scrub' and dry wash woodland, -peninsular bighorn sheep habitat, and desert tortoise habitat Impacted areas -have been quantified in Section A.4, above, and on and off -site mitigation lands are shown in the . preceding tables. Functions and values of on -site habitat have been thoroughly analyzed in the Crest/Stone Eagle S1?,.iR, incorporated by reference into this document: impacts to PBS and Desert Tortoise have been further analyzed by the U.S. Fish and Wildlife Service in the Cmst/Stond Eagle Biological Opinion letter. Functions and values of off site lands specified as compensation for the loss of on -site PBS and/or Desert Tortoise habitat; and desert scrub and desert dry wash woodland plant communities; are consistent with requirements to support for_those species and habitats. These lands have been found to be acceptable as compensatory mitigation for pmject impacts to these habitats by the California Department of Fish and Game (CDFG), as set forth in the 1063 Strelambed Alteration Agreement, and by the U.S. Fish and Wildlife Service fUSFWS), as set forth in the Biological Opinion (BO) letter issued for this project. According to the BO, it is the assessment of the USFWS that "the conservation value of this 600 acres of compensation habitat exceeds the value of the 250 acres that would be lost on the proposed project site." With regard to PBS, the BO states that "the proposed habitat replacement would result in a net reduction in the level of threat and an increase in the likelihood of recovery for these ewe groups." s 3. Time Lapse Between Jurisdictional Impacts and Expected Compensatory )Mitigation Success ' As required by the USFWS in the Biological Opinion issued for this project, the acquisition of off -site compensatory mitigation lands shall take place prior to initiation of project construction. In accordance with requirements set forth by CDFG in the 1603 Agreement, approximately 390 acres of PBS habitat (based on a 250-acre golf course) on the project site adjacent to the golf course in Section 25 shall be transferred to the Coachella Valley Mountains Conservancy or other'appropriate entity through a title tnsnsfer or conservation easement in perpetuity. These lands will be -.separated from, the golf course by a sheep exclusion fence, to be constructed prior to golf course construction. s "Biological Opinion Letter," Stone Eagle Project (f)rmerly Crest Golf Club and Residential Village," Noverubcr 7, 2003. 14- TMCIty of Palm Desert CresvStone Eagl&Secdon 400)(1) HMW Febm!g25,2004 Re-establishment/revegetation of impacted disert dr'y wash woodland and iteseri scrub habitat will take place commonstrraft, with project construction and buildout. Reyogetation of impacted areas will begin immediately as soon as construction impacts to each area are completed. It is estimated that impacted am of desert dry wash Woodland ' and desert scrub habitat could be re- established within two years of revegetation_ However, as noted in Section C3, a more conservatively defined target performance standard is used herein: This stanilard sets a target function and value standard as follows: within three years of revegetation, a re -naturalized site shall achieve a minimum of 40 pen:ent of natural condition coverage (see Table 7). With regard to on -site revegetation, there will be a five-year monitoring program and annual repordug shall be provided to the Corps reporting on the efficacy *of the revegetation effort and meeting the success criteria set forth in Table 7. If revegetation is proven effective at the end of five years, no hutm monitoring of revegmted areas shall be required. Table 7 Ntigation Sucem Criteria By Year Year Percent of Natural Condition Coverage 1 10 2 20 3 40 —4 -60- 5 so Source Robot Smith, USArznXCbmqo(&Rbier33=m 15,2004. 4. Estimated Total Cost Land Acquisition Costs: Project lands, including on -site mitigation lands: $19 million6 Off -site mitigation lands: $635,000 _Management Costs: Manigernent costs, mitigation lands:. $25,000 year 6 Ted Lennon, Destination Dovelopracut Corporation, personal cormaLvdcation, lanuary 1, 2004. 7 John Fitzpatrick, Destination Development Corporation, personal communication, December 31,2004. 1 Op. QL 15 TN1Gsty of Palm Desert CresUStone Esee-Section 404(b)(1) E IDW February 25, 2004 Mitieation Costs: Assumes 15 acres of on -site mitigation lands at cost of land restoration at $50,000 per acre. Total estimated cost for land restoration will not exceed $750,000. ' Other 1!'uutdiina- As act forth in the Department of the Army Permit, the permittee shall submit a performance bond to the Corps prior to initiation of construction to insure that all special condipons of the permit are complied with. As set forth in the USFWS Biological Opinion, the project proponent shall sponsor two annual ,golf fund raisers to benefit Bighorn Institute and Friends of Desert Mountains. Cost to sponsor these events has not yet been. determined, nor is a specific funding target required The proponent shall also create an endowment fund to provide for future management of off -site conservation lands at a 2003 rate of $200 per acre. This is a one-time fee. Based on this rate, and the acreage of off -site mitigation lands shown in Table 6, above, cost to the proponent contribution to establish this fond would be approximately $139,491 3. Special Aquatic )Habitats, Other Waters of the U.S., and Non -jurisdictional Areas Proposed: as Compensatory Mitigation Approximately 12.38 acres has been deteM ined to be waters of the US, which includes desert dry wash• woodland and desert scrub habitat that would be permanently impacted by the project. on -site rnitigation area for these habitats includes 15.17 acres. In addition, a Jurisdictional Delineation has been conducted on the approximately 100 acres of off -site mitigation lands. Of this 100 acres, 41.7 acres was determined to be Desert Dry Wash Woodland and the remainder was Desert Scrub.9 The off -site mitigation lands have been approved by the CDFG and USFWS as off -site compensatory mitigation for the loss of on -site PBS, Desert Tortoise, desert dry wash woodland and desert scrub habitat. No other special aquatic habitats or other waters of the U.S. are proposed as compensatory mitigation. Tara Nova Planning & Research delineation based on USGS Martinez 7.5 Quadrangle, January 8, 2004. .16 i' . • , TN/Qty of.Palm Desert Crest/Stone Eagle•Secttoa 404(b)(1) RWZW February 25, 2004 C. DESCRIPTI<ON OF THE PROPOSED COMPENSATORY MITIGATION SITE L Location and Size of Compensatory IVlitigation Site to QLw tory Mitigation Site Approximately 390 acres adjacent to the proposed Ctest/Stone Eagle Golf Course A.portion of Section 25, T5S, R5E, SBB&M. Approved Off -Site ConlpensatoXyhg a ton Sites The following describes the approved off site compensatory mitigation sites (see Appendix A Exhibit F3 and Exhibits I through 5). • Doorley 182.22 acres, comprised of the following: o 160.00 acres APN 686-120-003 A portion of the NE 1/4 of Section 8, T5S, RSE, SBB&M. o 22.23 acres APN 686-130.W5 A, portion of the SE 114 of Section 5, T5S, RSE, SBB&M. • Haystack 158.25 acres APN 635-030-009 A portion of•the SW 1/4 of See 3, US, RSE, SBB&M. , • HaystacWAmlanco 156;38 acres. APN 635-030-12 : A portion of.the NE 1/4 of Section 3, T6S, R5B, SBB&M. • • ' Dick 100.00 acres APN 753-340-008 A portion of the E 112 of Section 33, T7S, R7E, SBB&M. • Egan 100.60 APN 635-430-001 A p6rtion of the NE 1/4 of Section 23, T6S, R5E, SBB&M 2. Ownership Status All compensatory mitigation lands will be•acquired and managed by the project proponent,' Destination Development Corporation/Stone. Eagle LLC- As set forth in the CresdStoue Eagle Biological Opinion, the Corporation will transfer title or conservation easement in perpetuity for on -site mitigation lands in Section 25 to the Coachella Valley Mountains Conservancy or other appropriate entity approved by the USFWS prior to project construction. The Corporation will transfer title or conservation casement in perpetuity for off -site mitigation lands to the California Department of Fish and Game, Bureau of Land Management (BLM), or other appropriate entity approved by the USFWS prior to project construction. 17- TNCity of Palm Desert C=Ustonozagle-secdou 404(b)(t) H II O February 25,2004 3. Existing ]Functions and Values of the Compensatory Mitigation Site As discussed in Section B.3, existing functions and values of all on -site mitigation lands have a beenthoroughly analyzed in the Crest Golf Course and Residential Village SEiR. CDFG and USFWS have approved all off -site mitigation .lands as suitable for mitigation of impacts to • species and habitat impacted by the project. Existing functions and values of these lands are consistent. with those. necessary to support the impacted species. 4. jurisdictional Delineation (if applicable) 3'here are approximately 1238-acres of jurisdictional areas on-site.that will be impacted by the project. Of the off -site properties, an estimated jurisdictional delineation of waters of the US. was done on the Dick property because it exhibited the highest abundance of waters of the U.S. Approximately 41.7 acres of the 100 acres on the Dick property was determined to be Desert Dry Wash Woodland; the remainder was Desert Scrub (see Appendix A Exhibit F3). 5. Present and Proposed uses of the Compensatory Mitigation site and All Adjacent Areas On -Site Approximately 390 acres adjacent to the proposed Crest/Stone Eagle Golf Course Zoning: County of -Riverside: W-2 (Controlled Development) City of Palm Desert: Pre -annexation zoning requested: OS (Open Space) Off -Site . Doorley 182,22 acres, comprised of the following: o 160.00 acres APN 68fr120-W3 Zoning, City of Palm -Springs: 0-20•(Open land, 1 du/20 ac) o 22.23 acres APN APN 686-130-005 . Zoning, City of Palm Springs:•0-20 (Open Land, 1 du/20 ac) a Haystack 15825 acres APN 635-030-009. Zoning, County of Riverside: R-1-1(1 du/ac) . Haystack/Amlanco 156.38 acres APN 635-030-12 Zoning, County of Riverside: R-1-1(1 du/ac) Dick 100.00 acres APN 753-340-008 Zoning, County of Riverside: W-2 (Controlled Development) • Egan 100.60 APN 635-430-MI Zoning, County of Riverside: W 2 (Controlled Development) Land use: All off -site mitigation lands are currently vacant and undeveloped Lands adjacent to the off -site mitigation lands are owned by the Bureau of Land Management and 18 ' • TN/City o€Palm Desert ' CXeWStone Eag! ,-=don 404(b)(1) HMW ' February 25, 2004 California Department of Fish and Game, with 'some private land ownership adjacent to the Haystack parcels. Adjacent lands are primarily open space lands. .Lands -west and north of the -conserved. portion of Section 25 are vacant and undisturbed foothills, canyons and plateaus of the Santa Rosa Mountains- To the east is hilly terrain with scattered single-family homes on large lots. The proposed Stone Eagle Golf Course will occur on* approximately 250 acres immediately southeast of the conserved areas, within Section 25. To the south is substantial but scattered low density single-family development on large lots, water storage tanks and several unimproved drainages and limited flood control improvements. Long-term protection measures include the recently adopted Riverside County General Plan and the proposed Coachella Valley Multiple Species Habitat Conservation flan (Plan). The Jong -term protection measures afforded by these Plans are briefly discussed below. Riverside County General Plan10 Pour of the six parcels listed above are located in unincorporated areas of Riverside County in the Coachella Valley. The County adopted a new General flan on October 7, 2003. The General Plan provides new land use designations for all parcels in the unincorporated area of Riverside County. The County is currently reviewing zoning designations within its planning. area -to ensure their consistency with land use designations in the new General Plan. This'review process is expected to provide further protection for lands containing sen$itive environmental resources by restricting permitted uses to those which would not adversely impact those resources. !QQachella Valley Multiple Species Habitat Conservation plan I The Coachella Valley Association of Governments (CVAG), in conjunction with a number of federal, state. and regional agencies is cmmdy (2003) preparing the Coachella Valley Multiple Species Habitat Conservation Plan (Plan). The MSHCP planning area includes the entire Coachella Valley and surrounding mountains. All of the five parcels listed above are within the planning area for the Plan, The Plan is intended to address current and potential future state and federal Endangered Species Act issues in the Plan Area. The MSHCP Memorandum of Understanding ' ("Planning Agreernenf), under the auspices of CVAG, was originally signed in late 1995 and -early 1996 by Cathedral. City, Coachella, Desert Hot Springs, Indian Wells, Indio, La Qtunta, Palm Desser, Palm Springs, and Rancho Mirage; County bf Riverside (County); U S. Fish and Wildlife Service (USFWS); California Department of Fish and Gamer (CDFG); Bureau of Land. Management (BLM); U.S. Forest Service (LISPS), and National Park Service (NPS). Subsequently, Caltrans, Coachella Valley Water District (CVWD), Desert Water Agency (DWA), Imperial Irrigation District (TiD), Riverside County Flood 10 www.d aa.eo-d erside.ca.u_ accessed lanwy 2, 2004. st "Coachella Valley Multiple Species Habitat Conservation Plan(Natural Community Consemdon Plan, Final Administrative Draft," prepared by Coachella Valley Association of Governamts and Coachella Valley Mountains Conservancy, December 1, 2003. 19 T&City of Palau Desert CreWStonc Eagle -Section 404(b)(1) Febmary?S, 2i104 Control and Water Conservation • District (County Flood Coritrol�'Riversidc County Waste -Management Department (County Waste), California Department of Parks and ration (State.Parks), and Coachella Valley Mountains Conservancy decided to partidpate .Since signing the original Memorandum -of Understanding, .the- Parties to the agreement ' have agreed to an arnendtnent stipulating that the Plan will meet the intent of the Natural Community Conservation Planning Act (NCCP Act) as well as the Califgrwa Endangered Species Act (CESA) and the Federal Endangered Species Act gWA). The amendment also states that the Planning Agreement constitutes an agreement to prepare a -Natural Community Conservation Plan (NCCP)' as specified in California ish. and Game Code -Section 2810. Tice Plan, which balances environmental protection and economic development objectives in the Plan Area, simplifies compliance with endangered species related laws. It is intended to satisfy the too requimments for the issuance of an Incidental Tana Permit that will allow the Take of species covered by the Flan in the course of otherwise lawful activities. To the maxi nqm extent practicable Plan will, to the, minimize and mitigate the -impacts of the Taking. Adoption of the MSHCP is anticipated prior to the end of 2004.. 6. Referenced Site(s) Referenced- sites include- approximately 15,17- acres on -site --to =be- revegetated after site - disturbance, As previously stated, these sites will be revegetated immediately following completion of construction -related activities in each area. It may generally be expected that natural vegetation would be re-established within two years_ The more conservative•perforipance standard for target values and functions for this project is •deftned'as follows: within three years of revegetation, a re -naturalized site shaII achieve a minimum of 40 percent of natural condition coverage; and 80 percent in five -years. 20 ' :. if � .. :. .-. ; i/,• .� � ,�.., � � �� .. ' .. :. •TN/C3ry�ofPalraDesext Creston Eagla•Seetion 40*)(1) MW Fe6rwy 25. 2004 D. II&LLM s'NTATION PLAN FOR THE COMPENSATORY WrIGATION SITE 1. Rationale for Expecting Implementation Success Extensive and ongoing consultations with the California'Depatttnent of ~ash and Game and U.S. Fish'and Wildlife Service have resulted in a thorough and stringent compliance program that incorporates review and approval processes, project and maintenance monitoring, and funding mechanisms for mitigation of impacts. The prugrarm includes requirements for the project proponene's acquisition of carefully selected suitable off -site mitigation lands. These lands have been approved by both agencies as appropriate and adequate, in terms of size, location, and environmental functions and values, to compensate for the loss of on -site peninsular bighorn sheep, desert tortoise, desert dry wash (microphyll) woodland and -desert scrub habitat. The project landscape plan, which will provide for the revcgetation of approximately 12.38 acres of impacted jurisdictional areas -on -site, is subject to approval by these agencies prior to project construction, with a total of 15.17 acres to be revegetated on -site.• The project proponent will . comply with USFWS and CDFt3 conditions for approval of the landscape plan. 'Ilia 1603 Agreement tequires the project proponent to prepare and submit for CDFG approval detailed revegetation/enhancement plans for the revegetaaon and resioration of, on -site dry wash and desert -scrub habitat affected by the project_ Review and approval of these plans, as well as compliance with other the requirements set forth by the CDFG in the Cri st/Stone Eagle 1603 Streambed Alteration. Agreement and by the USFWS in the Crest/Stone Eagle Biological Opinion provides the rationale for expecting implementation success. 2. Responsible parties Ted Lannon President, Stone Eagle LI.0 Sr. V.P., Destination Development Corporation 74-001 Reserve Drive Indian Wells, CA 92210 (760) 779-1646 3. Schedule Off -site mitigation lands will be acquired prior to initiation of project construction. In addition, on -site revegetation of approximately 15.17 acres of impacted jurisdictional areas will twice place commensurate with project construction. Re-establishment of plants in revegetated areas is expected to be complete within two to three years of revegetation. Title transfer or conservation easement to CVMC or other appropriate entity for conservation lands in Section 25 will be executed prior to project construction. 21 ' TNlCity of Palm Desert C=t/Stone Eagle,Sectioa 404(bxi) Il)�iblP 4. Site Preparation Site preparation• is cornmeusurate with site disturbance. As •previously noied, revegetation will *begin immediately following completion of construction in each impacted area on -site. S. Planting & Irrigation Piaui A preliminary landscape and'irrigation plan is included with the exhibits at the and of this docuinint (See Appendix A, ExMbits GI through G7). A plant palette prepared by the project biologist is also attached at the erid of this document (Appendix B). 'It includes primary (dominant species) •and secondary. (undexstory) components fo'r desert dry wash woodland and desert scrub habitat. 6. - As Built -Conditions As set forth in the US Army Corps of Engineers Ntigation Guidelines and Monitoring Regiwrements, as -built conditions wili -be certified by a professional engineer and submitted to the Corps within 45 days of fully implementing the compensatory mitigation. 22 T NICity of Palm Desert Crest/Stone EaglcSecdon 404(b)(1) HMW February 25, 2004 E. MAINTENANCE ACITIVITIES DURING THE MONITORING PERIOD L Maintenance Activities - The, Crest/Stone Eagle Biological Opinion authorizes the Corporation. to assume direct responsibility for management of conservation lands within Section 25. Management efforts shall include* the removal of invasive, exotic plant species and poisonous plants, and enhancement and restoration of water sources located within Section 25, The BO further states that thp management plan shallby approved by the Service. Prior to project construction, the project proponent shall provide the USFWS with the management plan for review and approval. A 401 Water Quality Certification has been issued by the Regional Water Quality Control Board (Colorado River Basin Region) for this project. The 401 application attd associated Best Management Practices/Integrated Pest Management Man effectively eliminates the dischat$e of fertilizers, herbicides and pesticides into surfacte waters and ground water. The stormwater management system designed for the CrestlStone Eagle project will conform to National Pollutant Discharge. Elimination System (NPDE4) standards. The 401 'Water Quality Standards Permit Application, including the •BMP/RO, and certification, have been provided to the U.S. Army Corps of Engineers A Conservation Easement between the project proponent and the Coachella Valley Mountains Conservancy or other appropriate. entity approved by the USFWS for bn-site mitigation lands in Section 25 will dedicates those lands for conservation in perpetuity. It resttcts pennitted activities on those lands to those expressly stated in the Easement Agreement. It restricts access by persons other than those authorized access for purposes of land management, and allows for mechanisms to ensure that access by domestic pets is prevented as much as is feasible. The 1603 Streambed Alteration Agreement sets forth an extensive list of requirements and conditions; these include specific management activities on mitigation lands, and scheduling and funding mechanisms for these activities. The Biological Opinion -requires that 'the project proponent remove all currently existing unauthorized trails from Section 25, including the unauthorized trail leading to Ramon Peak, and shall post and enforce no trespassing restrictions at all likely points of entry within six months after the beginning of construction. The project proponent (Corporation) shall employ security personnel for the life of the project to periodically patrol the area to prevent unauthorized trail construction, cross-country hiking and trespassing, off -road vehicle traffic, and domestic dogs from entering bighom sheep habitat through Corporation lands. The Biological Opinion also requires that prior to earth -moving activities, the project proponent designate an authorized biologist who will be responsible for overseeing compliance with desert tortoise protection measures. No more than 24 hours prior to any earth moving activity, the authorized biologist shall inspect the construction • site for the presence of desert tortoise or burrows. 23 TN/Cityof Palm Desert: Cresostone Eagle -Section 404(bXl) Me Fchmary 25, 2W 2. Responsible Parties Ted Lennon President, Stone WeLLC . Sr. V.P., Destination Development Corporation 74-001.Reserve Drive Indiana Wells, CA 9Z210- 60)779-1646 3. Schedule -As noted in Section E.1, Maintenance Activities, the Crest/Stone Eagle Biological Opinion sets forth certain time -.sensitive activities for management of on -site mitigation lands in Section 25. These include removal of unauthorized trails, continuous monitoring to prevent unauthorized trail construction, hilang, trespassing, off -road vehicle traffic; and access by domestic pets through Corporation lands. These activities also relate to designation of an authorized biologist to .ovefsee compliance with desert tortoise protection measures, and site inspection by the . authorized biologist prior to earth moving activities. The Biological Opinion provides for development of funding mechanisms for management of on and off -site mitigation lands. it requires that_the project proponent,_ within six months following the'effective date of ihe'Biological Opinion, provide a detailed plan outlining the creation of an endowment fund to provide for future management of off -site mitigation lands. It further requires the project proponent to sponsor, in perpetuity, two annual golf tournament fund raisers per year to benefit the general funds of the Bighorn Institute and the Friends of the Desert Mountains. This funding mechanism is to be established prior to project construction. Time sensitive requirements set forth in the.Department of the Army permit for this prajeet include submittal of a performance bond prior of $750,000 to initiation of construction to insure that all special conditions of the permit are complied with. These include -the successful completion of the HMMP, as well as I-DA II' O&M associated with the project for five years. The permit also sets forth compliance requirements with other conditions of approval prior to initiation of construction. These include notification of USFWS of intended project initiation dates and anticipated construction duration, acquisition and recordation of conservation easements as specified in the permit and the USFWS BO, Corps review and approval of final detail construction plans, and a pre -construction conference to educate personnel with the project regarding authorized activities. The Crest/Stone Eagle 1603 Streambed Alteration Agreement requires the project proponent to coordinate with the California Department of Fish and Game for the remediation and enhancement of the on -site seeps in Section 25. The remediation program is to be approved by the CDFG and 17SFWS, and will be carried out over a period of five years. The project proponent is also required to remove or have removed all invasive, non-native plant species occurring on on -site conservationtmitigation lands over a period of five years. 24 .. TWC: y of PatkDcsert. CrestlStone Eaglo-Secdon 404(b)(1)HMMF February 25, 2004 The CDFG further requiies the project proponent to'submit a security (e.g., an irrevocable letter of credit, pledge sayings account or -CD) for the amount of complete restoration of streambed covered by this agreement prior to construction of grading. A, cost estimate shall be submitted to the CDFG within 30 days of execption of the 1603 Agreement 25 3 I ' I i TN/City of Palm Desert QestlStoae Eaglo�Sec ion 404(b)(1) Hi W February 25,2004 F. MONITORING PLANFOR TIIE COMPENSATORY NMGATION SITE 1. Performance standards for target dates and success criteria It may generally be expected that nattiral vegetation would be reestablished within two years. The more conservative perftmrnce standard for target values and -functions for this project is -defined as follows: within three years of revegetation and renaturalizaation as set forth iri Table 7, plantings in -this area'shal. be established within 3 years and snail achieve a minimum of 44 percent of natural condition coverage within that period (see Table 7 for 5 year plan). 2. Target Functions and Values A baseline Vegetation Ttansect study to determine target Functions and Values will be completed by the- project • biologist, and submitted to the USFWS for approval prior to cdmpletion of the revegetation. plan. The Corps will field review the revegetated areas during compliance surveys to assure efficacious mitigation. 3. Target Hydrological Regime The project SH R provides a thorough analysis of hydrological conditions on the project site, including on -situ mitigation lands. It is anticipated that peak stormwater discharge rate from _ each of the. two watersheds affecting the subject property_will.be_ less than or equal to the peak flow rate with existing conditions. Artificial irrigation shall be used to assure the establishment and survival of all revegetated on -site mitigation lands. As previously noted, the identified off site mitigation lands have been approved by the appropriate permitting state -and federal agencies, and have been determined to be adequate and suitable to mitigate on -site impacts to peninsular bighorn sheep, desert tortoise, desertt dry wash woodland and desert scrub habitat. As such, target functions and values, including the target hydrological regime, are also considered suitable to support these habitats. 4. Target Jurisdictional and Non -jurisdictional Acreages -to be Established, Restored, Enhanced and/or Preserved Tables. 3, 4, and 5 in Section B.1 of this document list the target Jurisdictional and Non - Jurisdictional Acreages to be established, restored or preserved. Thesd include on and off -site lands, as shown in these tables and discussed throughout -this document These target acreages are also documented in the Biological Opinion and the I603 Streambed Alteration Agreement issued for this project, 5. Monitoring Methods The Crest/Stone Eagle Biological Opinion and the 1603 Streambed Alteration Agreement set forth a series of conditions and requirements for the project proponent with regard to - management of the compensatory mitigation Iands. These measures and requirements provide an intrinsic mechanism for monitoring the implementation, management and target performance 26 Twity of Palm Desist CreeMone Eagle•Sectinn 404(b)(1) SNIIv1P February 25, 2004 standards that established to mitigate impacts to peninsular bighorn sheep, desert tortoise,. desert -dry wash woodland and desert scrub habitat from this project. Methodology includes fulfiillment of requirements prior to initiation of grading, such as review and approval of landscape/itrigation and seep remediation .and enhanceinent plans, review and approval of detailed• ievegetation plans, designation of biologist to ovcrsee desert tortoise protection measures, securing of funding for revegetation of affected streambed on -site, and annual fundraisers. Representatives of monitoring agencies reserve the right to enter the project site at any time to ensure compliance with terms and conditions of permits and agreements. 6. Monitoring Schedule lvleasures described under "Amount or Extent of Take Anticipated" in the Crest/Stone Eagle Biological Opinion are non -discretionary and will be binding conditions of the 404 Department of the Army permit for work that is likely to adversely affect listed species. As shown in Section F.7., below, the project proponent sball provide an annual written report to the USVWS by January 31 of each year the Biological Opinion is in effect. The project proponent shall comply with the monitoring schedule for submittal of reports, designation of biologist to oversee desert tortoise protection methods, and other schedules as set forth in the Biological Opinion issued by the USFWS, and the Crest/Stone Eagle 1603 Streambed Alteration Agreement issued by CDFG. 7. Annual MonitoringReport;s As set forth in the Crest/Stone Bade Biological Opinion issued by the U.S. Fish and Wildlife Service, the project proponent shall provide a written. annual report to the United States Fish and Wildlife: Service by January 31 of each year, if the revegetation is proven to be effective after 5 years, no further -monitoring of revegetation is required. The report shall document implementation of the proposed conservation measures and compliance with the terms and conditions in this incidental take statement The report shall contain a discussion of the activities conducted, the approximate acreage of habitat affected by agency activities, problems encountered in implementing terms and conditions, recommendations for modifying the biological opinion to enhance the conservation of Peninsular bighorn sheep and desert tortoise, results of surveys, evaluations, and reviews, and information on new locations of bighorn sheep. This document will assist the Service and the Corps in evaluating future measure for the conservation of the species. With regard to on -site revegetation, there will be a five-year monitoring program and annual reporting shall be provided to the Corps reporting on the efficacy of the'rcvegetation effort and meeting the success criteria set forth in Table 7. if revegatation is proven effective at the end of five years, no further monitoring of revegetated areas shall be required 27: TNlCity of Palm Ucsatt Crest/Stone Eagle -Section 404(bxl) MR Rbnwy 2S, 2004 G. COMPLETION OF COMPENSATORY MITIGATION 1. Notification of completion: Upon completion of the initial monitoring period, and once final success criteria have been met., the project proponent shall notify', the Corps when submitting the final report documenting this completion. 2. Agency Confirmation Following receipt of the report, project proponent shaU coordinate a site visit to confirm the completion of the mitigation effort and any delineation and to determine whether on -site mitigation has met success criteria set forth in this Plan. 28 TNICky of Palm Desert Cmst/Stone FagloSection 400)(1) BMW Febnwy 25, 2004 H. -CONTINGENCY MEASURES ,t. Initiating Procedures As set forth in the U.S. Army Corps Habitat Mitigation and Monitoring Proposal Guidelines, if an annual performance criterion is not met for all or any portion of the mitigation project in any year, or if the final success criteria are not mM the permiuee shall prepare an analysis of the causes) of failure and, if determined necessary by the Corps; propose remedial action for -approval. If ttre mitigation site' has not met the performance criterion, the responsible partyls maintenance and monitoring obligations continue until the Corps gives final project confirmation. 2. Afternativetocations for C6ntingency Compensatory Mitigation Off -site mitigation lands have been identified by the project proponent, and approved as appropriate •by the CDFG and USFWS. Identified and approved lands are available and acquisition will be accomplished prior to project construction. 3. Funding Mecbanjsuw The Cwzt/Stone Eagle Department of the Army Permit (File # 200201135-US), the Crest/Stone Eagle Biological Opinion,- and the Crest/Stone Eagle Streambed Alteration Agreement provide for funding compensatory and on -:site revegetation mitigation as follows: a. Prior to construction in waters of the U.S., the permittee shall submit a performance bond to the Corps of $750,000 to insure that all special conditions of this permit are complied with. Special conditions include the successful completion of the HIvW, with H2vW O&M associated with the project, for five years, and the onsite and offsite dedication and redo;dadon of the conservation easement of over 1000 acres, per the Biological Opinion. The permittee shall comply with all requirements regarding the bonding company and performance bond conditions, as set forth in the Crest/Stone Eagle Department of the Army Permit. b. The project proponent shall sponsor, in perpetuity, two annual golf tournament fund-raisers each to the benefit of the general funds of the Bighorn Institute and the Friends of the- Desert Mountains for the -acquisition, management and monitoring of conservation lands identified above or other appropriate use. No specific funding target is required but the project proponent shall make a good . faith effort to optimize funding from these annual events. The funding mechanism, and responsible management entity shall be established prior to project construction. The, project conservation lands shall be managed by an entity agreed upon by the project proponent, City, Department and the U.S. Fish and Wildlife Set -vim The Bighorn institute or other acceptable entity shall be selected by the City and/or resource agencies to provide monitoring in the first year. 29 Imcity of Palm Overt CresdStbne Hagfo-SeWon 4")(1) RMTO FaUuuy 25,2004 c. A security, (e.g. an irrevocable letter of credit, pledge savings account or CD) for ,f -the amount of complete restoration of streambod covered by this agreement shall be submitted to the Department prior to initiation of construction activities' This amount shall be based on axost estimate that shall be submitted to the Department for approval within 30 days of signing this AgreemenL The security shall be approved by the Depirtment's legal advisors prior to its execution, and shall allow the Department at its sole discretion to' recover funds immediately if the Department determines. there has been a default. d. The project proponient (Corporation) shall create an endowment fund, foundation, or other mutually agreed upon entity to provide for the future management of conservation lands other than Section 25, which the Corporation shall manage, at the 2W3 rate of $2001acre. This is a one-time endowment. The Corporation shall present a detailed plan - for approval by the U.S. Fish and Wildlife Service approval within six months. following the date this biological 'opinion becomes effective. The Corporation shall place a permanent conservation easement on A conservation lands (other than Section 25) or donate such lands to the California Department of Fish and Game, Bureau of Land Management or other entity approved by the.USPWS prior to beginning construction. 4. Responsible Parties Ted Lennon President, Stone Eagle; LLC Sr. VY., Destination Development Corporation 74-001 Reserve Drive Indian Wells, CA 92210 (760) 779-1646 - 30. Exhibit D Title Report -28- 41308562.7 0 Fidelity National Title Company PRELIMINARY REPORT In response to the application for a policy oj'title insurance referenced herein, Fidelity National Title Company hereby reports that it is prepared to issue, or cause to be issued, as of'the date hereof, a policy or policies of title insurance describing the land and the estate or interest therein hereinafter set forth, insuring against loss which may be sustained by reason oJ'any defect, lien or encumbrance not shown or referred to as an exception herein or not excluded from coverage pursuant to the printed Schedules, Conditions and Stipulations or Conditions of'said policy forms. The printed Exceptions and Exclusions from the coverage and Limitations on Covered Risks of :said policy or policies are set forth in Attachment One. Thepolicy to be issued may contain an arbitration clause. When the Amount of'Insurance is less than that set forth in the arbitration clause, all arbitrable matters shall be arbitrated at the option of either the Company or the Insured as the exclusive remedy of the parties. Limitations on Covered Risks applicable to the CLTA and ALTA Homeowner's Policies of Title Insurance which establish a Deductible Amount and aMaximum Dollar Limit of Liabilityfor certain coverages are also set forth in Attachment One. Copies of the policy forms should be read. They are available from the office which issued this report. This report (and any supplements or amendments hereto) is issued solely for the purpose offacilitating the issuance of a policy of title insurance and no liability is assumed hereby. If it is desired that liability be assumed prior to the issuance of a policy of title insurance, a Binder or Commitment should be requested. The policy(s) of title insurance to be issued hereunder will be policy(v) of Fidelity National Title Insurance Company, a California corporation. Please read the exceptions shown or referred to herein and the exceptions and exclusions set forth in Attachment One of this report carefully. The exceptions and exclusions are meant to provideyou with notice of matters which are not covered under the terms of the title insurance policy and should be carefully considered It is important to note that this preliminary report is not a written representation as to the condition of title and may not list all liens, defects and encumbrances affecting title to the land Countersigned Fidelity National Title Company a BY 4 Y SEAL Presmem ATTEST Secretary CLTA Preliminary Report Form - Modified (11/17/06) Visit Us on our Website: www. fntm com Fidelity National Title Company ISSUING OFFICE.- 1300 Dove Street, Suite 310 • Newport Beach, CA 92660 949 622-5000 • FAX Call for Fax PRELIMINARY REPORT Amended Title Officer: Patti Porter Title No.: 08-725117293-3-PP Locate No.: CAFNT0972-0972-0051-0725117293 TO: Manatt, Phelps & Phillips, LLP 11355 Olympic Boulevard Los Angeles, CA 90064 ATTN: Justin Thompson YOUR REFERENCE: Lot A/TR 30438-1 SHORT TERM RATE: PROPERTY ADDRESS: Vacant Land, Palm Desert, California EFFECTIVE DATE: August 30, 2011, 07:30 A.M. The form of policy or policies of title insurance contemplated by this report is: ALTA Owner's Policy (6/17/06) 1. THE ESTATE OR INTEREST IN THE LAND HEREINAFTER DESCRIBED OR REFERRED TO COVERED BY THIS REPORT IS: A Fee 2. TITLE TO SAID ESTATE OR INTEREST AT THE DATE HEREOF IS VESTED IN: STONE EAGLE, LLC, a California limited liability company 3. THE LAND REFERRED TO IN THIS REPORT IS DESCRIBED AS FOLLOWS: SEE EXHIBIT "A" ATTACHED HERETO AND MADE A PART HEREOF PL\PL 08/19/2008 1 CLTA Preliminary Report Form - Modified (11/17/06) Title No. 08-725117293-3-PP Locate No. CAFNT0972-0972-0051-0725117293 LEGAL DESCRIPTION EXHIBIT "A" THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS: PARCEL A: Lot A of Tract No. 30438-1 as shown by map on file in Book 351, Pages 1 through 4, inclusive of Maps, in the Office of the County Recorder of Riverside County, California. PARCEL B-1: Lots E and I of Tract No. 30438-2 as shown by map on file in Book 396, Pages 82 through 89, inclusive of Maps, in the Office of the County Recorder of Riverside County, California. Excepting from Lot I that portion of said Lot I described as 'Transfer Parcel" in that certain Certificate of Compliance (Waiver of Parcel Map PMW 07-09), recorded May 15, 2007 as Instrument No. 2007-0322267 of Official Records. PARCEL B-2: ( Lots F and L of Tract No. 30438-2) Parcel A of -that -certain Certificate -of -Compliance (Waiver of Parcel Map PMW 08-106) recorded August 26, 2008 as Instrument No. 2008-0468840 of Official Records. PARCEL C: INTENTIONALLY DELETED PARCEL D: INTENTIONALLY DELETED PARCEL E: INTENTIONALLY DELETED PARCEL F: INTENTIONALLY DELETED 2 CLTA Preliminary Report Form - Modified (11/17/06) Title No. 08-725117293-1-PP Locate No. CAFNT0972-0972-0051-0725117293 AT THE DATE HEREOF, ITEMS TO BE CONSIDERED AND EXCEPTIONS TO COVERAGE IN ADDITION TO THE PRINTED EXCEPTIONS AND EXCLUSIONS IN SAID POLICY FORM WOULD BE AS FOLLOWS: 1. Property taxes, which are a lien not yet due and payable, including any assessments collected with taxes to be levied for the fiscal year 2011-2012. 2. Property taxes, including any personal property taxes and any assessments collected with taxes, for the fiscal year 2010-2011, Assessor's Parcel Number 652-020-010-6. Code Area Number: 018-372 1st Installment: $75.66 PAID 2nd Installment: $75.66 PAID Land: $10,000.00 Improvements: $0.00 Exemption: $0.00 Personal Property: $0.00 Bill No.: 0428837 Supplemental assessment for 2009-2010 Bill No. 052952579-8 1st Installment: $718.69 PAID 2nd Installment: $718.69 PAID Must be paid by: April 10, 2011 Property taxes, including any personal property taxes and any assessments collected with taxes, for the fiscal year 2010-2011, Assessor's Parcel Number 652-020-020-5. Code Area Number: 018-372 1st Installment: $6.40 PAID 2nd Installment: $6.40 PAID Land: $1,000.00 Improvements: $0.00 Exemption: $0.00 Personal Property: $0.00 Bill No.: 0428842 Property taxes, including any personal property taxes and any assessments collected with taxes, for the fiscal year 2010-2011, Assessor's Parcel Number 652-020-022-7. Code Area Number: 018-372 1st Installment: $244.44 PAID 2nd Installment: $244.44 PAID Land: $39,335.00 Improvements: $0.00 Exemption: $0.00 Personal Property: $0.00 Bill No.: 0428843 CLTA Preliminary Report Form - Modified (11/17/06) ITEMS: (continued) Supplemental assessment for 2009-2010 Bill No.: 052952584-2 1st Installment: $2,701.86 PAID 2nd Installment: $2,701.86 PAID Must be paid by: April 10, 2011 Title No. 08-725117293-1-PP Locate No. CAFNT0972-0972-0051-0725117293 Property taxes, including any personal property taxes and any assessments collected with taxes, for the fiscal year 2010-2011, Assessor's Parcel Number 652-320-002-9. Code Area Number: 1st Installment: 2nd Installment: Land: Improvements: Exemption: Personal Property: Bill No.: 018-384 $60,021.67 PAID $60,021.67 PAID $9,800,000.00 $116,952.00 $0.00 $0.00 0406654 3. The lien of supplemental taxes, if any, assessed pursuant to the provisions of Chapter 3.5 (Commencing with Section 75) of the Revenue and Taxation code of the State of California. 4. Water rights, claims or title to water, whether or not disclosed by the public records. S. The lack of a legal right of access to and from a public street or highway. 6. Easement(s) for the purpose(s) shown below and rights incidental thereto as granted in a document. Granted to: Southern Pacific Railroad Purpose: Roads Recorded: March 23, 1912, Book 347, Page 127, of Deeds The exact location and extent of said easement is not disclosed of record. 7. Easement(s) for the purpose(s) shown below and rights incidental thereto as granted in a document. Granted to: R. Virginia Black Purpose: Public utilities and roads Recorded: January 22, 1951, Book 2028, Page 211, of Official Records Affects: A portion of said land 4 CLTA Preliminary Report Form - Modified (11/17/06) ITEMS: (continued) Title No. 08-725117293-1-PP Locate No. CAFNT0972-0972-0051-0725117293 S. Easement(s) for the purpose(s) shown below and rights incidental thereto as granted in a document. Granted to: California Electric Power Company Purpose: Public utilities Recorded: May 27, 1960, Instrument No. 48057, of Official Records Affects: A portion of Lot E of Parcel B-2 9. Easement(s) for the purpose(s) shown below and rights incidental thereto as granted in a document. Granted to: Robert H. Ricciardi, David A. Rogers and Margaret M. Rogers Purpose: Roads Recorded: March 9, 1982, Instrument No. 39790, of Official Records Affects: Lots E and F of Tract No. 30438-2 (Parcels B-1 and B-2) 10. The effect of a document entitled "Easement Grant Deed and Agreement", dated April 1, 1992, by and between Miller -Richards Limited Partnership, a California Limited Partnership, Marc Glassman, Jerold R. Meints and Deborah A. Meints and Walter Davenport and Erma Davenport, recorded March 29, 1995, as Instrument/File No. 094601, and re -recorded August 2, 1995 as Instrument/File No. 250056, both of Official Records, Riverside County, California. Reference being made to the record for full and further particulars. 11. The effect of a document entitled "Easement Agreement", dated January 4, 2002, by and between Miller -Richards and St. Margaret's, recorded July 5, 2002 as Instrument/File No. 2002-369697 of Official Records, Riverside County, California. Reference being made to the record for full and further particulars. Affects: A portion of Lettered Lot A of Tract No. 30438-1 (Parcel A) 12. The effect of a document entitled "City of Palm Desert Ordinance No. 1028 - Approving a Development Agreement Relating to The Crest Golf Club and Residential Village", dated October 24, 2002, by the City of Palm Desert, California, recorded March 11, 2003 as Instrument/File No. 2003- 172463 of Official Records, Riverside County, California. Reference being made to the record for full and further particulars. Matters contained in that certain document entitled "Assignment of Rights Under Development and Improvement Agreements" dated August 16, 2004, executed by and between Stone Eagle Development, LLC, a Delaware limited liability company and Valley Independent Bank, a California corporation, recorded August 31, 2004, Instrument No. 2004-0690274, of Official Records. Reference is hereby made to said document for full particulars. 5 CLTA Preliminary Report Form • Modified (11/17106) ITEMS: (continued) Title No. 08-725117293-3-PP Locate No. CAFNT0972-0972-0051-0725117293 Note 1: An amendment to said agreement recorded October 29, 2007, Instrument No. 2007- 0663645, of Official Records. Note 2: A second amendment to said agreement recorded July 24, 2008, Instrument No. 2008- 0404071, of Official Records. 13. The recital on the map of Tract No. 30438-1 that Lot A is reserved for golf course purposes. 14. An easement for pedestrian, equestrian and bicycle trail purposes as shown and dedicated to the City of Palm Desert on the map of said Tract No. 30438-1, over a portion of Lot A (Parcel A). 15. The effect of a document entitled "Easement Agreement", dated February 2004, by and between Miller -Richards Limited Partnership, a California limited partnership; and Sabby Jonathan and Wendy Sue Jonathan, Trustees of the Sabby and Wendy Sue Jonathan Inter Vivos Revocable Trust Declaration dated September 7, 1989, recorded February 25, 2004 as Instrument/File No. 2004- 0128833 of Official Records, Riverside County, California. Reference being made to the record for full and further particulars. 16. Intentionally Deleted 17. The recital on the map of Tract No. 30438-2 that Lots E and H are reserved for common area purposes. 18. The recital on the map of Tract No. 30438-2 that Lot F is reserved for golf and parking purposes. 19. The recital on the map of Tract No. 30438-2 that Lot I is reserved for lake purposes. 20. The recital on the map of Tract No. 30438-2 that Lot L is reserved for club house purposes. 21. An easement for public utility purposes as shown and dedicated to the City of Palm Desert on the map of said Tract No. 30438-2, over a portion of Lots E, F and I (Parcels B-1 and B-2). 22. Intentionally Deleted 23. An easement for public utility and water line purposes as shown and reserved on the map of said Tract No. 30438-2, over a portion of Lot E (Parcel B-1) 24. An easement for bike path, golf cart and public utility purposes as shown and dedicated to the City of Palm Desert on the map of said Tract No. 30438-2, over a portion of Lot E (Parcel B-1). 25. An easement for access road and maintenance purposes as shown and reserved on the map of said Tract No. 30438-2, over a portion of Lots E and H. 6 CLTA Preliminary Report Form - Modified (11/17/06) ITEMS: (continued) Title No. 08-725117293-1-PP Locate No. CAFNT0972-0972-0051-0725117293 26. An easement for domestic water and sanitary sewer together with access road and maintenance purposes as shown and dedicated to Coachella Valley Water District on the map of said Tract No. 30438-2, over a portion of Lot E (Parcel B-1) 27. Intentionally Deleted 28. Easement(s) for the purpose(s) shown below and rights incidental thereto as granted in a document. Granted to: Coachella Valley Water District Purpose: Pipelines and incidental purposes Recorded: February 23, 2006, Instrument No. 2006-0133531, of Official Records Affects: A portion of Lots E and F of Tract No. 30438-2 (Parcel B-1) 29. Intentionally Deleted 30. Matters contained in that certain document entitled "Shared Use and Maintenance Agreement" dated March 8, 2006, executed by and between Stone Eagle Development, LLC, a Delaware limited liability company and Stone Eagle Association, a California nonprofit mutual benefit corporation, recorded March 16, 2006, Instrument No. 2006-0188879, of Official Records. Reference is -hereby made to said document for full particulars. Affects: Parcel A and Lots E, F and I of Parcel B 31. Easement(s) for the purpose(s) shown below and rights incidental thereto as granted in a document. Granted to: Southern California Edison Company Purpose: Public utilities Recorded: March 22, 2006, Instrument No. 2006-0203077, of Official Records Affects: All of Lot E of Parcel B-2 32. Matters contained in that certain document entitled "Agreement for Supplemental Imported Water Supply Charges" dated August 2, 2006, executed by and between Stone Eagle Development, LLC, a Delaware limited liability company and Coachella Valley Water District, a public agency, recorded August 2, 2006, Instrument No. 2006-0567773, of Official Records. Reference is hereby made to said document for full particulars. Affects: Parcel B 33. Intentionally Deleted 34. Intentionally Deleted 35. Intentionally Deleted 7 CLTA Preliminary Report Form - Modified (11/17/06) ITEMS: (continued) Title No. 08-725117293-1-PP Locate No.CAFNT0972-0972-0051-0725117293 36. A lien for unsecured property taxes filed by the tax collector of the county shown, for the amount set forth, and any other amounts due. County: Riverside Fiscal Year: 2009-2010 Taxpayer: Stone Eagle Development County Identification Number: 0378057 Amount: $229.27 Recorded: November 16, 2009, Instrument No. 2009-0592520, of Official Records 37. Matters contained in that certain document entitled "Maintenance Agreement" dated July 19, 2010, executed by and between City of Palm Desert, a California municipal corporation and Stone Eagle, LLC, a California limited liability company, recorded August 16, 2010, Instrument No. 2010-0386697, of Official Records. Reference is hereby made to said document for full particulars. 38. Matters contained in that certain document entitled "Easement Agreement" dated July 27, 2011, executed by and between Stone Eagle, LLC, a California limited liability company, Majac Limited Partnership, a -Nevada -limited partnership and Nighthawk Owners Association, a California non=profit - mutual benefit corporation recorded August 10, 2011, Instrument No. 2011-0351484, of Official Records. Reference is hereby made to said document for full particulars. 39. Any claims for mechanics' liens that may be recorded by reason of a recent work of improvement under construction and/or completed at the date hereof. 40. If a work of improvement is contemplated, in progress or recently completed. To assist the Company in determining if it can give the priority coverage contained within the policy contemplated by this report, please provide the following: (a) Current Financial Statement and/or Current Loan Application. (b) Project Cost Breakdown. (c) Completed Loss of Priority Questionnaire. (This form furnished by the Company). (d) A fully executed Indemnity Agreement. (This form furnished by the Company). (e) If work* has commenced prior to the recordation of the Construction Deed of Trust there will be further requirements and the closing of the transaction could be delayed. *"Work" may include, among other things, any preparation of the site for the planned construction, delivery of construction materials or equipment and any labor furnished. The Company reserves the right to add additional items or make further requirements after review of the requested documentation. CLTA Preliminary Report Form - Modified (11/17/06) ITEMS: (continued) Title No. 08-725117293-3-PP Locate No. CAFNT0972-0972-0051-0725117293 41. Matters which may be disclosed by an inspection and/or by a correct ALTA/ACSM Land Title Survey of said land that is satisfactory to this Company, and/or by inquiry of the parties in possession thereof. 42. Any easements not disclosed by those public records which impart constructive notice as to matters affecting title to real property and which are not visible and apparent from an inspection of the surface of said land. 43. Any rights of the parties in possession of a portion of, or all of, said land, which rights are not disclosed by the public record. This Company will require, for review, a full and complete copy of any unrecorded agreement, contract, license and/or lease, together with all supplements, assignments and amendments thereto, before issuing any policy of title insurance without excepting this item from coverage. The Company reserves the right to except additional items and/or make additional requirements after reviewing said documents. 44. Before issuing its policy of title insurance, this Company will require for review, the following documents from the Limited Liability Company named below. Limited Liability Company: Stone Eagle, LLC, a California limited liability company (a) A copy of its operating agreement and any and all amendments, supplements and/or modifications thereto, certified by the appropriate manager or member. (b) Confirmation that its Articles of Organization (LLC-1), and Certificate of Amendment (LLC-2), any restated Articles of Organization (LLC-10) and/or Certificate of Correction (LLC-11) have been filed with the Secretary of State. (c) If the Limited Liability Company is member -managed a full and complete current list of members certified by the appropriate manager or member. (d) If the Limited Liability Company was formed in a foreign jurisdiction, evidence satisfactory to the Company, that it was validly formed, is in good standing and authorized to do business in the state of origin. (e) If the Limited Liability Company was formed in a foreign jurisdiction, evidence satisfactory to the Company, that it has complied with California "doing business" laws, if applicable. After review of the requested documents, the Company reserves the right to add additional items or make additional requirements prior to the issuance of any policy of title insurance. END OF ITEMS CLTA Preliminary Report Form - Modified (11/17/06) Tide No. 08-725117293-1-PP Locate No. CAFNT0972-0972-0051-0725117293 Note 1. If a county recorder, title insurance company, escrow company, real estate broker, real estate agent or association provides a copy of a declaration, governing document or deed to any person, California law requires that the document provided shall include a statement regarding any unlawful restrictions. Said statement is to be in at least 14-point bold face type and may be stamped on the first page of any document provided or included as a cover page attached to the requested document. Should a party to this transaction request a copy of any document reported herein that fits this category, the statement is to be included in the manner described. Note 2. The only deeds affecting said land, which recorded within twenty-four (24) months of the date of this report, as are follows: Grantor: SBS Trust Deed Network, a California corporation Grantee: Stone Eagle Golf Holdings Corp., a California corporation Recorded: February 22, 2010, Instrument No. 2010-0079595, of Official Records Note 3. The only deeds affecting said land, which recorded within twenty-four (24) months of the date of this report, as are follows: Grantor: Stone Eagle Golf Holdings Corp., a California corporation Grantee:-- Stone Eagle, LLC,-a-California- limited - liability company Recorded: March 31, 2010, Instrument No. 2010-0147799, of Official Records Note 4. Wiring instructions for Fidelity National Title Company, Riverside, CA, are as follows: Receiving Bank: Union Bank of California (800)849-6466 Irvine, CA 92614 ABA Routing No.: 122000496 Credit Account Name: Fidelity National Title Company - Major Accounts Payoff/Admin 11870 Pierce St. Suite 100, Riverside, CA 92505 Credit Account No.: 9100586999 Reference No.: 08-725117293 These wiring instructions are for this specific transaction involving the Title Department of the Newport Beach office of Fidelity National Title Company. These instructions therefore should not be used in other transactions without first verifying the information with our accounting department. It is imperative that the wire text be exactly as indicated. Any extraneous information may cause unnecessary delays in confirming the receipt of funds. Note 5. Any documents being executed in conjunction with this transaction must be signed in the presence of an authorized Company employee, an authorized employee of an agent, an authorized employee of the insured lender, or by using Bancsery or other approved third -party service. If the above requirements cannot be met, please call the company at the number provided in this report. 10 CLTA Preliminary Report Form - Modified (11/17/06) NOTES: (continued) Title No. 08-725117293-3-PP Locate No. CAFNT0972-0972-0051-0725117293 OWNER'S DECLARATION The undersigned hereby declares as follows: 1. (Fill in the applicable paragraph and strike the other) a. Declarant ("Owner") is the owner or lessee, as the case may be, of certain premises located at further described as follows: See Preliminary Report/Commitment No. for full legal description (the "Land"). b. Declarant is the of ("Owner"), which is the owner or lessee, as the case may be, of certain premises located at , further described as follows: See Preliminary Report/Commitment No. for full legal description (the "Land"). 2. (Fill in the applicable paragraph and strike the other.) a. During the period of six months immediately preceding the date of this declaration no work has been done, no surveys or architectural or engineering plans have been prepared, and no materials have been -furnished -in connection with the erection, equipment, repair, protection or - removal of any building or other structure on the Land or in connection with the improvement of the Land in any manner whatsoever. b. During the period of six months immediately preceding the date of this declaration certain work has been done and materials furnished in connection with upon the Land in the approximate total sum of $ . but no work whatever remains to be done and no materials remain to be furnished to complete the construction in full compliance with the plans and specifications, nor are there any unpaid bills incurred for labor and materials used in making such improvements or repairs upon the Land, or for the services of architects, surveyors or engineers, except as follows: . Owner, by the undersigned Declarant, agrees to and does hereby indemnify and hold harmless Fidelity National Title Insurance Company against any and all claims arising therefrom. 3. Owner has not previously conveyed the Land; is not a debtor in bankruptcy (and if a partnership, the general partner thereof is not a debtor in bankruptcy); and has not received notice of any pending court action affecting the title to the Land. 4. Except as shown in the above -referenced Preliminary Report/Commitment, there are no unpaid or unsatisfied mortgages, deeds of trust, Uniform Commercial Code financing statements, claims of lien, special assessments, or taxes that constitute a lien against the Land or that affect the Land but have not been recorded in the public records. 5. The Land is currently in use as occupy/occupies the Land; and the following are all of the leases or other occupancy rights affecting the Land: 6. There are no other persons or entities that assert an ownership interest in the Land, nor are there unrecorded easements, claims of easement, or boundary disputes that affect the Land. 7. There are no outstanding options to purchase or rights of first refusal affecting the Land. 11 CLTA Preliminary Report Form - Modified (11/17/06) NOTES: (continued) Title No. 08-725117293-J-PP Locate No. CAFNT0972-0972-0051-0725117293 This declaration is made with the intention that Fidelity National Title Insurance Company (the "Company") and its policy issuing agents will rely upon it in issuing their title insurance policies and endorsements. Owner, by the undersigned Declarant, agrees to indemnify the Company against loss or damage (including attorneys fees, expenses, and costs) incurred by the Company as a result of any untrue statement made herein. I declare under penalty of perjury that the foregoing is true and correct and that this declaration was executed on at Signature: END OF NOTES 12 CLTA Preliminary Report Form - Modified (11/17/06) o_--_-_-- cl other This Map bhp fumlfhed as f convenience to Ice I n m �I __._.___ ! $ } he min descrl6ed land In n atbn to adJdMnp atreeb a lands. The Ccmpany dome not puaraMee dlmanslons, distances, bearings,or screspe aided thereon, nor W 4— '��` 3 g I I r 1 I Intended to INustrdf Weal building An er supersede City or — ] County oMnancn, I* zamng and bulldnp codes, etc. irdormWon con.—Ing the un ofMW Prcel fhouW be obtained Rom local government apsnclef. __ S S S S 5 S _ MGCIHN YY1rr.l vm n'eer O pM.—tirnty � c9 O O O O O N a M/a M 0 A 0 n - 6 J N L10.8LO V1LL rez r• xeNre V yo, M Q10 �+«�llb2lI A B , 3NOIS � nr r amu•� orowi xe'ea+t �,�\7 `,� y� 7 ap m e T 2222 e N u n rylg _ c. PIQ $I�NO RK A F-O fl ' I r.. n�* xo•ea ' Wo azzz of �� LU ra err rarer � O r U)� LO a W ca W N O A k _ ao Z tj 60E-o LO VMl R � roeer 4 � M� d i Pe U m'rw (0'IN g J O N � g 8' E00•B LO VIl1 $ LpL-90 VLl 0 tJ 1 43 N ad I 0 W CO aC K W vi W LO O a � LL ym Z P '6Plo ATTACHMENT ONE AMERICAN LAND TITLE ASSOCIATION RESIDENTIAL TITLE INSURANCE POLICY (6-1-87) EXCLUSIONS In addition to the Exceptions in Schedule B, you are not insured against loss, costs, attorneys' fees, and expenses resulting from: 1. Governmental police power, and the existence or violation of tiny law or government regulation. This includes building and zoning ordinances and also laws and regulations concerning: • land use • improvements on the land • land division •_environmental_protection_._ This exclusion does not apply to violations or the enforcement of these matters which appear in the public records at policy date. This exclusion does not limit the zoning coverage described in Items 12 and 13 of Covered Title Risks. The right to take the land by condemning it, unless: • a notice of exercising the right appears in the public records on the Policy Date • the taking happened prior to the Policy Date and is binding on you if you bought the land without knowledge of the taking In addition to the Exclusions, you are not insured against loss, costs, attorneys' fees, and the expenses resulting from: 1. Any rights, interests, or claims of parties in possession of the land not shown by the public records. 2. Any easements or liens not shown by the public records. This does not limit the lien coverage in Item 8 of Covered 'title Risks. Title Risks: • that are created, allowed, or agreed to by you • that are known to you, but not to us, on the Policy Date - unless they appeared in the public records • that result in no loss to you • that first affect your title after the Policy Date — this does not limit the labor and material lien coverage in Item 8 of Covered Title Risks Failure topayvalue for your title. - 1,ack of a right: • to any land outside the area specifically described and referred to in Item 3 of Schedule A or • in streets, alleys, or waterways that touch your land This exclusion does not limit the access coverage in Item 5 of Covered Title Risks. 3. Any facts about the land which a correct survey would disclose and which are not shown by the public records. This does not limit the forced removal coverage in Item 12 of Covered Title Risks, 4. Any water rights or claims or title to water in or under the land, whether or not shown by the public records. Attachment One (I 1 / 17/06) ATTACHMENT ONE (CONTINUED) CALIFORNIA LAND TITLE ASSOCIATION STANDARD COVERAGE POLICY —1990 EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of: 1. (a) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. (b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation alecting the land has been recorded in the public records at Date of Policy. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge. 3. Defects, liens, encumbrances, adverse claims, or other matters: (a) whether or not recorded in the public records at Date of Policy, but created, suffered, asstuned or agreed to by the insured claimant; (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy; (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy; or (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the insured mortgage or for the estate or interest insured by this policy. Unenforceability of the lien of the insured mortgage because of the inability or failure of the insured at Date of Policy, or the inability or failure of any subsequent owner of the indebtedness, to comply with the applicable doing business laws of the state in which the land is situated. Invalidity or unenforceability of the lien of the insured mortgage, or claim thereof, which arises out of the transaction evidenced by the insured mortgage and is batted upon usury or any consumer credit protection or truth in lending law. Any claim, which arises out of the transaction vesting in the insured the estate or interest insured by this policy or the transaction creating the interest of the insured lender, by reason of the operation of federal bankruptcy, state insolvency or similar creditors' rights laws. SCHEDULE B, PART I EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) which arise by reason of: PART Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the public records. Any facts, rights, interests or claims which are not shown by the public records but which could be ascertained by an inspection of the land or which may be asserted by persons in possession thereof. Easements, liens or encumbrances, or claims thereof, not shown by the public records. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the public records. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the public records. Attachment One 0 1 / 1 T06 ) ATTACHMENT ONE (CONTINUED) AMERICAN LAND TITLE ASSOCIATION LOAN POLICY (10-17-92) WITH A.L.T.A. ENDORSEMENT -FORM 1 COVERAGE EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of: 1. (a) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating to (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. (b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. 1 Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge. 3. Defects, liens, encumbrances, adverse claims, or other matters: (a) created, suffered, assumed or agreed to by the insured claimant; (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy, (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy (except to the extent that this policy insures the priority of the lien of the insured mortgage over any statutory lien for services, labor or material or to the extent insurance is afforded herein as to assessments for street improvements under construction or completed at Date of Policy); or (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the insured mortgage. 4. Unenforceability of the lien of the insured mortgage because of the inability or failure of the insured at Date of Policy, or the inability or failure of any subsequent owner of the indebtedness, to comply with applicable doing business laws of the state in which the land is situated. 5. Invalidity or Linen forceabilily of the lien of the insured mortgage, or claim thereof, which arises out of the transaction evidenced by the insured mortgage and is based upon usury or any consumer credit protection or truth in lending law. 6. Any statutory lien for services, labor or materials (or the claim of priority of any statutory lien for services, labor or materials over the lien of the insured mortgage) arising from an improvement or work related to the land which is contracted for and commenced subsequent to Date of Policy and is not financed in whole or in part by proceeds of the indebtedness secured by the insured mortgage which at Date of Policy the —insured has advanced or is obligated to-advanoc.-- 7. Any claim, which arises out of the transaction creating the interest of the mortgagee insured by this policy, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that is based on: (i) the transaction creating the interest of the insured mortgagee being deemed a fraudulent conveyance or fraudulent transfer; or (ii) the subordination of the interest of the insured mortgagee as a result of the application of the doctrine of equitable subordination, or (iii) the transaction creating the interest of the insured mortgagee being deemed a preferential transfer except where the preferential transfer results from the failure: (a) to timely record the instrument of transfer; or (b) of such recordation to impart notice to a purchaser for value or a judgement or lien creditor. The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage: EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) which arise by reason of: Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the public records. Any facts, rights, interests or claims which are not shown by the public records but which could be ascertained by an inspection of the land or which may be asserted by persons in possession thereof. Easements, liens or encumbrances, or claims thereof, not shown by the public records. 4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the public records. 5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b) or (c) are shown by the public records, Attachment One (11/17/06) ATTACHMENT ONE (CONTINUED) 2006 AMERICAN LAND TITLE ASSOCIATION LOAN POLICY (06-17-06) EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy, and the Company will not pay loss or damage, costs, attorneys' fees, or expenses that arise by reason of: 1. (a) Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to (i) the occupancy, use, or enjoyment of the Land; (ii)the character, dimensions, or location of any improvement erected on the Land; (iii) the subdivision of land; or (iv) environmental protection; or the effect of any violation of these laws, ordinances, or governmental regulations. 'I'his Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5. (b) Any governmental police power. This Exclusion I (b) does not modify or limit the coverage provided under Covered Risk 6: 2. Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8. 3. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed, or agreed to by the Insured Claimant; (b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; (c) resulting in no loss or damage to the Insured Claimant; (d) attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risk 11, 13, or 14); or (e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value Ibr the Insured Mortgage, 4. Unenforceability of the lien of the Insured Mortgage because of the inability or failure of an Insured to comply with applicable doing -business laws of the state where the Land is situated. 5. Invalidity or unenforecability in whole or in part of the lien of the Insured Mortgage that arises out of the transaction evidenced by the Insured Mortgage and is based upon usury or any consumer credit protection or truth -in -lending law. 6. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that the transaction creating the lien of the Insured Mortgage, is - (a) a fraudulent conveyance or fraudulent transfer, or (b) a preferential transfer for any reason not stated in Covered Risk 13(b) of this policy. 7. Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching between Date of Policy and the date of recording of the Insured Mortgage in the Public Records. This Exclusion does not modify or limit the coverage provided under Covered Risk I I (b). The above policy form may be issued to afford either Standard Coverage or Extended Coverage. addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage: EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) that arise by reason of: (a) 'faxes or assessments that are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the Public Records; (b) proceedings by a public agency that may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the Public Records. Any facts, rights, interests, or claims that are not shown by the Public Records but that could be ascertained by an inspection of the Land or that may be asserted by persons in possession of the Land. Easements, liens or encumbrances, or claims thereof, not shown by the Public Records. Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land and not shown by the Public Records. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof-, (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the Public Records, Attachment One (11 / 17/06) ATTACHMENT ONE (CONTINUED) AMERICAN LAND TITLE ASSOCIATION OWNER'S POLICY (10-17-92) EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, Costs, attorneys' fees or expenses which arise by reason of: 1. (a) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating to (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Dated Policy. (b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge. Defects, liens, encumbrances, adverse claims, or other matters: (a) created, suffered, assumed or agreed to by the insured claimant; (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy; (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy, or (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the estate or interest insured by this policy. Any claim, which arises out of the transaction vesting in the insured the estate or interest insured by this policy, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that is based on. (i) the transaction creating the estate or interest insured by this policy being deemed a fraudulent conveyance or fraudulent transfer; or (ii) the transaction creating the estate or interest insured by this policy being deemed a preferential transfer except where the preferential transfer results from the failure: (a) to timely record the instrument of transfer; or (b) of such recordation to impart notice to a purchaser for value or a judgement or lien creditor. The above policy fort may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage: EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage (and the Company will not pay costs, attomeys' fees or expenses) which arise by reason of: Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the public records. Any facts, rights, interests or claims which are not shown by the public records but which could be ascertained by an inspection of the land or which may be asserted by persons in possession thereof. Easements, liens or encumbrances, or claims thereof, not shown by the public records. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the public records. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b) or (c) are shown by the public records. Attachment One (11 / t 7/06) ATTACHMENT ONE (CONTINUED) 2006 AMERICAN LAND TITLE ASSOCIATION OWNER'S POLICY (06-17-06) EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy, and the Company will not pay loss or damage, costs, attorneys' fees, or expenses that arise by reason of: 1. (a) Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to (i) the occupancy, use, or enjoyment of the land; (ii)the character, dimensions, or location of any improvement erected on the Land; (iii) the subdivision of land; or (iv) environmental protection; or the effect of any violation of these laws, ordinances, or governmental regulations. This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5. (b) Any governmental police power. This Exclusion I (b) does not modify or limit the coverage provided under Covered Risk 6. 2. Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8. 3. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed, or agreed to by the Insured Claimant; (b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; (c) resulting in no loss or damage to the Insured Claimant; (d) attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risk 9 and 10); or (e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Title. 4. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that the transaction vesting the Title as shown in Schedule A, is (a) a fraudulent conveyance or fraudulent transfer; or (b) a preferential transfer for any reason not stated in Covered Risk 9 of this policy. 5. Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching between Date of Policy and the date of recording of the deed or other instrument of transfer in the Public Records that vests Title as shown in Schedule A. The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage: EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) that arise by reason of (a) Taxes or assessments that are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the Public Records; (b) proceedings by a public agency that may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the Public Records. Any facts, rights, interests, or claims that are not shown by the Public Records but that could be ascertained by an inspection of the Land or that may be asserted by persons in possession of the Land. Easements, liens or encumbrances, or claims thereof, not shown by the Public Records. Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land and not shown by the Public Records. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof-, (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the Public Records. Attachment One (11/17/06) ATTACHMENT ONE (CONTINUED) CLTA HOMEOWNER'S POLICY OF TITLE INSURANCE (10-22-03) ALTA HOMEOWNER'S POLICY OF TITLE INSURANCE (10-22-03) EXCLUSIONS In addition to the Exceptions in Schedule B, You are not insured against loss, costs, attorneys' fees, and expenses resulting from: 1. Governmental police power, and the existence or violation of any law or government regulation. This includes ordinances, laws and regulations concerning: a. building b. zoning c. Land use d. improvements on Land e. Land division f. environmental protection This Exclusion does not apply to violations or the enforcement of these matters if notice of the violation or enforcement appears in the Public Records at the Policy Date. This Exclusion does not limit the coverage described in Covered Risk 14, 15, 16, 17 or 24. 2. The failure of Your existing structures, or any part of them, to be constructed in accordance with applicable building codes. This Exclusion does not apply to violations of building codes if notice of the violation appears in the Public Records at the Policy Date. 3. The right to take the Land by condemning it, unless: a. notice of exercising the right appears in the Public Records at the Policy Date; or b. the taking happened before the Policy Date and is binding on You if You bought the Land without Knowing of the taking. 4. Risks: a. that are created, allowed, or agreed to by You, whether or not they appear in the Public Records; b. that are Known to You at the Policy Date, but not to Us, unless they appear in the Public Records at the Policy Date; c. that result in no loss to You; or d. that first occur after the Policy Date — this does not limit the coverage described in Covered Risk 7, 8.d, 22, 23, 24 or 25. 5. Failure to pay value for Your Title. 6. Lack of a right: a. to any Land outside the area specifically described and referred to in paragraph 3 of Schedule A; and b, in streets, alleys, or waterways that touch the Land. This Exclusion does not limit the coverage described in Covered Risk 1 1 or 18. LIMITATIONS ON COVERED RISKS Your insurance for the following Covered Risks is limited on the Owner's Coverage Statement as follows: • For Covered Risk 14, 15, 16 and 18, Your Deductible Amount and Our Maximum Dollar Limit of Liability shown in Schedule A. The deductible amounts and maximtun dollar limits shown on Schedule A are as follows: Your Deductible Amount Our Maximum Dollar Limit of Liabilijy Covered Risk 14: 1.00% of Policy Amount $ 10,000.00 or $ 2,500.00 (whichever is less) Covered Risk 15: 1.00% of Policy Amount $ 25 0%00 or $ 5,000.00 (whichever is less) Covered Risk 16: 1.00% of Policy Amount $ 25,000,00 or $ 5,000.00 (whichever is less) Covered Risk 18: 1.00% of Policy Amount $ 5,000.00 or $ 2,500.00 (whichever is less) Attachment One (11 / 17/06) ATTACHMENT ONE (CONTINUED) ALTA EXPANDED COVERAGE RESIDENTIAL LOAN POLICY (10/13/01) EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of: 1. (a) Any law, ordinance or governmental regulation (including but not limited to zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating to (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any improvements now or hereafter erected on the Land; (iii) a separation in ownership or a change in the dimensions or areas of the Land or any parcel of which the Land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the Land has been recorded in the Public Records at Date of Policy. This exclusion does not limit the coverage provided under Covered Risks 12, 13, 14, and 16 of this policy. (b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the Land has been recorded in the Public Records at Date of Policy. This exclusion does not limit the coverage provided under- Covered Risks 12, 13, 14, and 16 of this policy. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the Public Records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without Knowledge. 3. Defects, liens, encumbrances, adverse claims or other matters: (a) created, suffered, assumed or agreed to by the Insured Claimant; (b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; (c) resulting in no loss damage to the Insured Claimant; (d) attaching or created subsequent to Date of Policy (this paragraph does not limit the coverage provided under Covered Risks 8, 16, 18, 19, 20, 21, 22, 23, 24, 25 and 26); or (e) resulting in loss or damage which would not have been sustained if the Insured Claimant had paid value for the Insured Mortgage. 4. Unenforceability of the lien of the Insured Mortgage because of the inability or failure of the Insured at Date of Policy, or the inability or failure of any subsequent owner of the indebtedness, to comply with applicable doing business laws of the state in which the Land is situated. 5. Invalidity or unenforceability of the lien of the Insured Mortgage, or claim thereof, which arises out of the transaction evidenced by the Insured Mortgage and is based upon usury, except as provided in Covered Risk 27, or any consumer credit protection or truth in lending law, 6. Real property taxes or assessments of any governmental authority which become a lien on the Land subsequent to Date of Policy. This exclusion does not limit the coverage provided under Covered Risks 7, 8(e) and 26. 7. Any claim of invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage as to advances or modifications made after the Insured has Knowledge that the vestee shown in Schedule A is no longer the owner of the estate or interest covered by this policy. This exclusion does not limit the coverage provided in Covered Risk 8. 8. Lack of priority of the lien of the Insured Mortgage as to each and every advance made after Date of Policy, and all interest charged thereon, over liens, encumbrances and other matters affecting the title, the existence of which are Known to the Insured at: (a) The time of the advance; or (b) The time a modification is made to the terms of the Insured Mortgage which changes the rate of interest charged, if the rate of interest is greater as a result of the modification than it would have been before the modification. This exclusion does not limit the coverage provided in Covered Risk 8. 9. The failure of the residential structure, or any portion thereof to have been constructed before, on or after Date of Policy in accordance with applicable building codes. This exclusion does not apply to violations of building codes if notice of the violation appears in the Public Records at Date of Policy. Attachment One (11 /1 T06 ) Notice You maybe entitled to receive a $20.00 discount on escrow services if you purchased, sold or refinanced residential property in California between May 19, 1995 and November 1, 2002. If you had more than one qualifying transaction, you may be entitled to multiple discounts. If your previous transaction involved the same property that is the subject of your current transaction,youu do not have to do anything; the Company will provide the discount, provided you are paying for escrow or title services in this transaction. If your previous transaction involved property different from the property that is subject of your current transaction, you must - prior to the close of the current transaction - inform the Company of the earlier transaction, provide the address of the property involved in the previous transaction, and the date or approximate date that the escrow closed to be eligible for the discount. Unless you inform the Company of the prior transaction on property that is not the subject of this transaction, the Company has no obligation to conduct an investigation to determine if you qualify for a discount. If you provide the Company information concerning a prior transaction, the Company is required to determine if you qualify for a discount which is subject to other terms and conditions. Effective through November 1, 2014 (privacy)(05-08) Page 1 of 2 Fidelity National Financial, Inc. Privacy Statement Effective Date: 5/1/2008 Fidelity National Financial, Inc. and its subsidiaries ("FNF") respect the privacy and security of your non- public personal information ("Personal Information") and protecting your Personal Information is one of our top priorities. This Privacy Statement explains FNF's privacy practices, including how we use the Personal Information we receive from you and from other specified sources, and to whom it may be disclosed. FNF follows the privacy practices described in this Privacy Statement and, depending on the business performed, FNF companies may share information as described herein. Personal Information Collected We may collect Personal Information about you from the following sources: • Information we receive from you on applications or other forms, such as your name, address, social security number, tax identification number, asset information, and income information; • Information we receive from you through our Internet websites, such as your name, address, email address, Internet Protocol address, the website links you used to get to our websites, and your activity while using or reviewing our websites; • Information about your transactions with or services performed by us, our affiliates, or others, such as information concerning your policy, premiums, payment history, information about your home or other real property, information from lenders and other third parties involved in such transaction, account balances, and credit card information; and • Information we receive from consumer or other reporting agencies and publicly recorded documents. Disclosure of Personal Information We may provide your Personal Information (excluding information we receive from consumer or other credit reporting agencies) to various individuals and companies, as permitted by law, without obtaining your prior authorization. Such laws do not allow consumers to restrict these disclosures. Disclosures may include, without limitation, the following: • To insurance agents, brokers, representatives, support organizations, or others to provide you with services you have requested, and to enable us to detect or prevent criminal activity, fraud, material misrepresentation, or nondisclosure in connection with an insurance transaction; • To third -party contractors or service providers for the purpose of determining your eligibility for an insurance benefit or payment and/or providing you with services you have requested; • To an insurance regulatory authority, or a law enforcement or other governmental authority, in a civil action, in connection with a subpoena or a governmental investigation; • To companies that perform marketing services on our behalf or to other financial institutions with which we have joint marketing agreements and/or • To lenders, lien holders, judgment creditors, or other parties claiming an encumbrance or an interest in title whose claim or interest must be determined, settled, paid or released prior to a title or escrow closing. We may also disclose your Personal Information to others when we believe, in good faith, that such disclosure is reasonably necessary to comply with the law or to protect the safety of our customers, employees, or property and/or to comply with a judicial proceeding, court order or legal process. (privacy) Page 2 of 2 Effective Date: 5/1/2008 Disclosure to Affiliated Companies - We are permitted by law to share your name, address and facts about your transaction with other FNF companies, such as insurance companies, agents, and other real estate service providers to provide you with services you have requested, for marketing or product development research, or to market products or services to you. We do not, however, disclose information we collect from consumer or credit reporting agencies with our affiliates or others without your consent, in conformity with applicable law, unless such disclosure is otherwise permitted by law. Disclosure to Nonaffiliated Third Parties -We do not disclose Personal Information about our customers or former customers to nonaffiliated third parties, except as outlined herein or as otherwise permitted by law. Confidentiality and Security of Personal Information We restrict access to Personal Information about you to those employees who need to know that information to provide products or services to you. We maintain physical, electronic, and procedural - safeguards that comply mith-federal regulations to guard Personal -Information. - Access To Personal Information/ Requests for Correction, Amendment, or Deletion of Personal Information As required by applicable law, we will afford you the right to access your Personal Information, under certain circumstances to find out to whom your Personal Information has been disclosed, and request correction or deletion of your Personal Information. However, FNF's current policy is to maintain customers' Personal Information for no less than vour state's reauired record retention reauirements for the Duroose of handlina future coverage claims. For your protection, all requests made under this section must be in writing and must include your notarized signature to establish your identity. Where permitted by law, we may charge a reasonable fee to cover the costs incurred in responding to such requests. Please send requests to: Chief Privacy Officer Fidelity National Financial, Inc. 601 Riverside Avenue Jacksonville, FL 32204 Changes to this Privacy Statement This Privacy Statement may be amended from time to time consistent with applicable privacy laws. When we amend this Privacy Statement, we will post a notice of such changes on our website. The effective date of this Privacy Statement, as stated above, indicates the last time this Privacy Statement was revised or materially changed. Notice of Available Discounts Pursuant to Section 2355.3 in Title 10 of the California Code of Regulations Fidelity National Financial, Inc. and its subsidiaries ("FNF") must deliver a notice of each discount available under our current rate filing along with the delivery of escrow instructions, a preliminary report or commitment. Please be aware that the provision of this notice does not constitute a waiver of the consumer's right to be charged the filed rate. As such, your transaction may not qualify for the below discounts. You are encouraged to discuss the applicability of one or more of the below discounts with a Company representative. These discounts are generally described below; consult the rate manual for a full description of the terms, conditions and requirements for such discount. These discounts only apply to transactions involving services rendered by the FNF Family of Companies. This notice only applies to transactions involving property improved with a one -to -four family residential dwelling. FNF Underwritten Title Companies FNF Underwriter FNTC — Fidelity National Title Company FNTIC — Fidelity National Title Insurance Company FNTCCA — Fidelity National Title Company of California Available Discounts CREDIT FOR PRELIMINARY REPORTS AND/OR COMMITMENTS ON SUBSEQUENT POLICIES (FNTIC) Where no major change in the title has occurred since the issuance of the original report or commitment, the order may be reopened within 12 or 36 months and all or a portion of the charge previously paid for the report or commitment may be credited on a subsequent policy charge. FEE REDUCTION SETTLEMENT PROGRAM (FNTC, FNTCCA and FNTIC) Eligible customers shall receive a $20.00 reduction in their title and/or escrow fees charged by the Company for each eligible transaction in accordance with the terns of the Final Judgments entered in The People of the State of California et al. v. Fidelity National Title Insurance Company et al., Sacramento Superior Court Case No. 99AS02793, and related cases. DISASTER LOANS (FNTIC) The charge for a Lender's Policy (Standard or Extended coverage) covering the financing or refinancing by an owner of record, within 24 months of the date of a declaration of a disaster area by the government of the United States or the State of California on any land located in said area, which was partially or totally destroyed in the disaster, will be 50% of the appropriate title insurance rate. CHURCHES OR CHARITABLE NON-PROFIT ORGANIZATIONS (FNTIC) On properties used as a church or for charitable purposes within the scope of the normal activities of such entities, provided said charge is normally the church's obligation the charge for an owner's policy shall be 50% or 70% of the appropriate title insurance rate, depending on the type of coverage selected. The charge for a lender's policy shall be 32% or 50% of the appropriate title insurance rate, depending on the type of coverage selected. CA Discount Notice (notdisc-fnt)Effective Date: 7/1/2010 Exhibit E Map of Natural Condition of the Property Please see attached -29- 41308562.7 LEGEND EXHIBIT E CONCRETE CARTPATH p TEES © GREEN n;•.an �� GATE ..... ---- HIKING TRAIL I DIRT ROAD OR A CONSERVATION EASEMENT PER R PCL E UNRECORDED DOCUMENT ENTITLED "CONSERVATION EASEMENT". _ GATE / / R �,... PCL F ,� Q ...'.. R DIRT ROAD PCL D l �✓ R a: \��� RESTROOMS—,,.., { �``� DIRT \PCL GAPE OOP GATE ® , R DIRT ROAD 10 GATETE 2 N Y R-- ' PCL C COVERED BBQ AREA 11 L H„ ;1 . _� �. 9 R R I'*: .r . .. ;5:� `1i.i'�' `�". PCL B PC G y%a R 11 (� PUMP HOUSE -' LAKE."' PCL F II O �p GAT O ..... �5. Q 11 u R / I 14 !1 PCL A �� II G--12 GATE�.'_ ;;'•`Ji r DIRT ROAD RESTROOMS . R PCL G 16 18 'PCL F PCL I ti R\ ,,�-•��, RESTROOMS GATE PCL F DIRT ROAD %" MAINTENANCE SHED RESTAURANT I J J 1 STORY STUCCO RESIDENCE �, PCL F DIRT ROAD I PCL F I 9 Q . f • '� ,. ASPH ROAD IMHUNSAKER & ASSOCIATES I R V I N E, I N C. STONE EAGLE GOLF COURSE EXHIBIT E PLANNING ■ ENGINEERING . ■ SURVEYING Three Hughes • Irvine, CA 92618 • PH (949) Sd3.1010 • FX; (949) 533-0759 CITY OF PALM DESERT, COUNTY OF RIVESIDE, STATE OF CALIFORNIA Exhibit F Annual Inspection Report Form C�y11'Z� ' • 11���hf.� PART I — EASEMENT MANAGEMENT ACTIVITIES (All actions shall be undertaken at the discretion of the City, as deemed necessary, a minimum of four times per year.) PART I — EASEMENT MANAGEMENT ACTIVITIES Time period covering to dd/mm/yy dd/mm/yy ❑1. CHECK FOR USE OF EASEMENT AREA INCONSISTENT WITH THE TERMS OF THE CONSERVATION EASEMENT (See Part II): ---_ _ --—Date(s) Performed: _ _ Corrective Action/Response Taken: Additional Notes: 41308562.8 -30- PART II PROHIBITED ACTIVITIES (Circle One) NOT 1. Supplemental Watering OBSERVED OBSERVED N/A (If observed, describe corrective action or response taken) NOT 2. Use of herbicides, pesticides, OBSERVED OBSERVED N/A biocides, fertilizers, or other agricultural chemicals, except as vector control or to control invasive plant species. (If observed, describe corrective action or response taken) NOT 3. Fire Protection activities. OBSERVED OBSERVED N/A (If observed, describe corrective action or response taken) NOT 4. Off -Road Vehicle use. OBSERVED OBSERVED N/A (If observed, describe corrective action or response taken) 41308562.8 -3 1 - NOT 5. Grazing or agriculture. OBSERVED OBSERVED N/A (If observed, describe corrective action or response taken) NOT 6. Horseback riding, bicycling, OBSERVED hunting or fishing. OBSERVED N/A (If observed, describe corrective action or response taken) NOT 7. Construction or placement of any OBSERVED building, billboard or sign. OBSERVED N/A (If observed, describe corrective action or response taken) NOT 8. Dumping or accumulation of trash. OBSERVED OBSERVED N/A (If observed, describe corrective action or response taken) NOT 9. Planting of non-native plants. OBSERVED OBSERVED N/A (If observed, describe corrective action or response taken) NOT 10. Excavation or extraction of OBSERVED minerals/soil. OBSERVED N/A (If observed, describe corrective action or response taken) 41308562.8 -32- NOT 11. Recent alterations of OBSERVED OBSERVED N/A topography/grading. (If observed, describe corrective action or response taken) NOT 12. Recently removed or destroyed OBSERVED OBSERVED N/A trees or shrubs. (If observed, describe corrective action or response taken) NOT 13. Activities detrimental to water OBSERVED OBSERVED N/A -- - quality. (If observed, describe corrective action or response taken) Additional Notes: 41308562.8 -33- RECORDING REQUESTED BY: City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 Attn: City Attorney AND WHEN RECORDED, MAIL TO: City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 Attn: City Clerk Space Above Line for Recorder's Use Only AGREEMENT REGARDING EASEMENTS THIS AGREEMENT REGARDING EASEMENTS ("Agreement") is dated as of , 2012, by and between the City of Palm Desert, a California municipal corporation ("City"), and Stone Eagle, LLC, a California limited liability company ("Stone Eagle"). The City and Stone Eagle are entering into this Agreement with reference to the following facts: 1.0 RECITALS. 1.1 Stone Eagle, as "Grantor", and City, as "Grantee", have entered into that certain Conservation Easement, dated as of , 2012, pursuant to which Grantor granted and conveyed to Grantee a conservation easement in perpetuity over that certain real property as more fully described therein, a copy of which is attached hereto as Exhibit A and incorporated herein (the "Stone Eagle Conservation Easement"). 1.2 Stone Eagle Association, a California nonprofit mutual benefit corporation ("Stone Eagle Association"), as "Grantor", and City, as "Grantee", have entered into that certain Conservation Easement, dated as of , 2012, pursuant to which Stone Eagle Association granted and conveyed to Grantee a conservation easement over that certain real property as more fully described therein, a copy of which is attached hereto as Exhibit B and incorporated herein (the "Association Conservation Easement"). 1.3 The Stone Eagle Conservation Easement and the Association Conservation Easement are sometimes hereinafter collectively referred to as the "Conservation Easements". 1.4 Pursuant to the terms of the Conservation Easements, the Grantee is to perform certain inspections of the easement property and to prepare an annual inspection report pursuant to the terms set forth in the Conservation Easements (the "Inspection Obligations"). gAplanninglaud aylaian\stone eagle agreement re conservation easements.docz Page 1 1.5 Stone Eagle and City wish to enter into this Agreement to set forth their agreement that the Inspection Obligations will be performed at Stone Eagle's expense by an independent consultant selected by Stone Eagle and approved by City, all as more fully set forth herein. NOW, THEREFORE, in consideration of the mutual covenants set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, City and Stone Eagle (each herein sometimes referred to as a "Party" and jointly, the "Parties") hereby agree as follows: 2.0 TERM. The term of this Agreement shall commence on the Effective Date and shall continue until the Inspection Obligations on behalf of the Grantee cease or are terminated ("Term"). 3.0 INSPECTIONS AND REPORTS. The Parties hereby agree that the quarterly compliance inspections of the easement property and the preparation of the annual inspection report required under Section 6(b) of the Conservation Easements shall be conducted by an environmental consultant (the "Consultant") designated by Stone Eagle and approved by City, which approval shall not be unreasonably withheld, conditioned or delayed. The initial Consultant will be Terra Nova Planning and Research, provided Stone Eagle may change the designated Consultant at anytime by notice to the City and City shall have 30 days in which to approve the new Consultant or provide Stone Eagle with written objections to the Consultant designated by Stone Eagle. The Consultant shall document the results of each of the quarterly inspections in a manner sufficient to prepare the "Annual Inspection Report" (as defined in the Conservation Easements), which shall be prepared by the Consultant and delivered to City, substantially in the form attached hereto as Exhibit C. The Annual Inspection Report shall be delivered to City for its review and approval within sixty (60) days of the end of each calendar year during the Term. 4.0 TERMINATION OF CONSULTANT BY CITY. City shall have the right to remove any Consultant providing inspection services pursuant to the provisions of Section 3.0 hereinabove, in City's reasonable discretion; provided that City shall provide thirty (30) days prior written notice to Stone Eagle of City's request to terminate the Consultant designated by Stone Eagle, specifying City's reasonable basis for requesting termination of the Consultant. If within such 30-day period Stone Eagle and City have not resolved City's objections to the Consultant, then the Consultant shall be terminated and a new Consultant shall be designated by Stone Eagle, subject to City's approval, as provided in Section 3.0 hereinabove, and subject to Stone Eagle's right to seek prompt judicial review pursuant to Section 6.0 herein. 5.0 INSPECTION COSTS. Stone Eagle shall reimburse City the reasonable costs for the Consultant to perform the quarterly inspections and prepare the Annual Inspection Report, provided, however, that City may direct Stone Eagle to pay the costs of the inspections and preparation of such reports directly to the Consultant. 6.0 CONFLICTS AND DISPUTE RESOLUTION. In the event there is a dispute in connection with the interpretation of or performance under this Agreement, including without limitation a dispute regarding the Inspection Obligations, and the complaining party has provided gAplanning\lauri aylaian\stone eagle agreement re conservation easements.docx Page 2 written notice to the non -complaining party detailing with particularity the claimed dispute (the "Dispute Notice"), then City and Stone Eagle will promptly endeavor in good faith to resolve such dispute. If no resolution can be reached within 30-days of delivery of the Dispute Notice to the non- performing party, or within such other time frame as the parties may mutually agree, then City shall have the right to unilaterally impose a reasonable cure, subject to Stone Eagle's right to challenge any such imposition by prompt judicial review. 7.0 GENERAL PROVISIONS. 7.1 Headings. Section headings contained in this Agreement are for reference purposes only and shall not in any way affect the meaning or interpretation of this Agreement. 7.2 Binding Effect; Successors and Assigns. This Agreement shall be binding upon, and inure to the benefit of, the Parties hereto and their respective successors and assigns. 7.3 Severability. If any term, provision, covenant, or condition of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions of this Agreement shall continue in full force and effect, unless and to the extent the rights and obligations of any of the Parties has been materially altered or abridged by such holding. 7.4 Covenant Running with the Land. Stone Eagle's covenants to perform or cause the Inspection Obligations to be performed in accordance with this Agreement are covenants which shall run with the land, shall bind Stone Eagle's successors and assigns and shall remain in effect for so long as the Inspection Obligations remain in effect under the Conservation Easements. Stone Eagle shall only be liable for complying with this Agreement during the time when Stone Eagle owns the Property; thereafter, the obligations set forth herein shall be the responsibility of Stone Eagle's successor(s). 7.5 Waiver. No waiver of any provision of this Agreement shall be effective unless in writing and signed by the duly authorized representative of the party against whom enforcement of the waiver is sought. No waiver of any right or remedy in respect of any occurrence or event shall be deemed a waiver of any right or remedy in respect of any other occurrence or event. 7.6 No Partnership or Joint Venture. The Parties hereto agree that nothing contained in this Agreement shall be deemed or construed as creating a partnership, joint venture, or similar relationship between City and Stone Eagle. 7.7 Governing Law. This Agreement shall be construed and enforced in accordance with the laws of the State of California. 7.8 Notices. Any notice or communication required hereunder between City and Stone Eagle must be in writing and may be given personally, by first class United States mail, postage prepaid, or by reputable overnight delivery service which provides confirmation of receipt in writing. Either party hereto may at any time, by giving ten (10) days' written notice to the other g:\planningVaud aylaian\stone eagle agreement re conservation easements.dom Page 3 party hereto, designate any other address in substitution of the address to which such notice or communication shall be given. Such notices or communications shall be given to the parties at their addresses set forth below: To City: City of Palm Desert 73-510 Fred Waring Drive Palm Desert, California 92260 Attn: Director of Community Development With a copy to: Best, Best & Krieger, LLP 74-760 Highway 111, Suite 200 Indian Wells, CA 92210 Attn: Robert W. Hargreaves, Esq. To Stone Eagle: Stone Eagle, LLC 72450 Stone Eagle Drive Palm Desert, CA 92260-6279 Attn: General Manager With a copy to: The Busch Firm 2532 Dupont Drive Irvine, CA 92612-1524 Attn: George Mulcaire, Esq. 7.9 Time is of the Essence. Time is of the essence in this Agreement. 7.10 Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original. [SIGNATURES ON NEXT PAGE] gAplanningVauri aylaian\stone eagle agreement re conservation easements.d= Page 4 IN WITNESS WHEREOF, City and Stone Eagle have entered into this Agreement as of the date first written above. DECLARANT: STONE EAGLE, LLC, a California limited liability company By: Pacific Hospitality Group, LLC a California limited liability company Executive Manager By: Timothy R. Busch Its: Chief Executive Officer [signatures continued on next page] gaplanning\lauri aylaian\stone eagle agreement re conservation easements.docx Page 5 CITY: CITY OF PALM DESERT, a California municipal corporation ATTEST: City Clerk APPROVED AS TO LEGAL FORM: BEST, BEST & KRIEGER, LLP al David Erwin Robert A. Spiegel, Mayor gAplanning\lauri aylaian\stone eagle agreement re conservation easements.docx Page 6 STATE OF CALIFORNIA ) ) SS. COUNTY OF ) On , before me, , a Notary Public, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. 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. SIGNATURE OF NOTARY STATE OF CALIFORNIA ) ) SS. COUNTY OF ) On , before me, , a Notary Public, personally appeared who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s) or the entity upon behalf of which the person(s) acted, executed the instrument. 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. SIGNATURE OF NOTARY g:'lanningVauri aylaian\stone eagle agreement re conservation easements.docx Page 7 RECORDING REQUESTED BY: City of Palm Desert 73 -5 10 Fred Waring Drive Palm Desert, CA 92260 Attn: City Attorney MAIL TO: City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 Attn: City Clerk Space Above Line for Recorder's Use Only AMENDMENT TO CONSERVATION EASEMENT THIS AMENDMENT TO CONSERVATION EASEMENT ("Amendment") is made this day of , 2012, by and among Stone Eagle Open Space, LLC, a California limited liability company (herein, "Grantor"), and the City of Palm Desert, a California municipal corporation ("Grantee"), with reference to the following facts: RECITALS A. Grantor is the sole owner in fee simple of Lot B of Tract 30438-1, which is located in the City of Palm Desert, County of Riverside, State of California, as more particularly described on Exhibit A attached hereto and incorporated by this reference (the "Property"). B. On or about July 13, 2004, Grantor's predecessors -in -interest and Grantee entered into that certain Conservation Easement Deed, which was recorded in the Official. Records of the County of Riverside, recorded as Document No. 2004-0673241 ("Conservation Easement"). The Conservation Easement encumbers all of the Property. C. Grantor and Grantee wish to enter into this Amendment in order to amend and modify the Conservation Easement to amend and modify Exhibit B to the Conservation Easement to depict the location and existence of the existing Dirt Road (as hereinafter defined) and to provide for restrictions on the use of the Dirt Road, all as more fully set forth herein. D. Any capitalized terms not expressly defined in this Amendment shall have the meaning set forth in the Conservation Easement. BF Doc 521957-3 COVENANTS, TERMS, CONDITIONS, AND RESTRICTIONS In consideration of the above recitals and the mutual covenants, terms, conditions and restrictions contained herein, and pursuant to laws of the United States and the State of California, including Civil Code Section 815, et seq., the parties hereby agree as follows: 1. Grantor and Grantee acknowledge and agree that in addition to the manmade structures or improvements described in section 1.2 of the Conservation Easement there is an existing dirt road (the "Dirt Road") located on portions of Lot B, as shown on Exhibit 11B-1" attached to this Amendment and incorporated herein. 2. In addition to the rights granted to Grantor and its successors -in -interest pursuant to Section 8 of the Conservation Easement, Grantor and Grantee agree that Grantor shall have the right to use and maintain the Dirt Road located on Lot B for the limited purposes of: (i) accessing Lot B for maintaining the big horn sheep exclusionary fence, signage and other markers as provided in Section 6.5 of the Conservation Easement, and (ii) performing other duties of Grantor under the Conservation Easement, including, without limitation, the long term maintenance of the Property as provided in Section 18 of the Conservation Easement. 3. Pursuant to Section 17 of the Conservation Easement, this Amendment has been approved by the ACOE and USFWS. 4. Grantor and Grantee agree that this Amendment is consistent with the purpose of the Conservation Easement and shall not affect its perpetual duration. 5. Except as expressly amended and modified by this Amendment, the Conversation Easement remains in full force and effect, enforceable in accordance with its terms. 6. The parties may execute this instrument in two or more counterparts, which shall, in the aggregate, be signed by all parties; each counterpart shall be deemed an original instrument as against any party who has signed it. In the event of any disparity between the counterparts produced, the recorded counterpart shall be controlling. [SIGNATURES ON NEXT PAGE] -2- BF Doc 521957-3 IN WITNESS WHEREOF, Grantor and Grantee have executed this Amendment to Conservation Easement Deed the day and year first above written and have agreed to be bound by the terms and provisions hereof. GRANTOR: STONE EAGLE OPEN SPACE, LLC, a California limited liability company By: Pacific Hospitality Group, LLC, a California limited liability company Its: Manager By: Timothy R. Busch Its: Chief Executive Officer Approved as to form: CITY OF PALM DESERT, a California municipal corporation By: _ Name: Title: Pursuant to Section 17 of the Conservation Easement, the undersigned hereby consent to the terms of this Amendment. ACOE USFWS -3- BF Doc 521957-3 EXHIBIT A Legal Description Lot B of Tract Map No. 30438-1 on file in Book 351 of Maps, Pages 1 through 4, inclusive, records of Riverside County, California, as more particularly described on Exhibit A-1 attached hereto. -4- BF Doc 521957-3 51 I EXHIBIT B-1 Please see attached -5- BF Doc 521957-3 EXHIBIT B-1 II- „ DIRT ROAD---�\ I 1 DIRT ROAD CROSSES PL "r. IDIRT ROAD CROSSES PL f" DIRT ROAD--'--'; I / DIRT ROAD CROSSES PL����`� DIRT ROAD CROSSES PL ®HUNSAKER & ASSOCIATES 1 R V I N E , I N C . PLANNING ■ ENGINEERING ■ SURVEYING Three Hughes - IMne, CA 92618 - PH: (949) 533.1010 - PX. (949) 583-WW 9 i EXHIBIT B-1 CITY OF PALM DESERT, COUNTY OF RIVESIDE, STATE OF CAUFORNIA State of California } County of } On before me, Date Here Insert Name and Title of the Officer personally appeared Name(s) of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. 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. Signature Place Notary Seal Above Signature of Notary Public State of California } County of On before me, Date personally appeared Place Notary Seal Above Here Insert Name and Title of the Officer Name(s) of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. 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. Signature Signature of Notary Public C.� RECORDING REQUESTED BY: THE CITY OF PALM DESERT AND WHEN RECORDED MAIL TO: City of Palm Desert 73-510 Fred Warine Drive Palm Desert, CA 92260 Attn: City Clerk (THIS SPACE FOR RECORDER'S USE ONLY) COVENANT OF EASEMENT FOR CONSERVATION I.O. NO: N/A PTS NO: N/A NO DOCUMENT TAX DUE R & T CODE 11922 Assessor's Parcel No.: 771-030-008-6 DWG NO: MB 288/96-105 . NO FEE FOR GOVT. AGENCY GOVERNMENT CODE 27383 For valuable consideration, receipt of which is hereby acknowledged, CORNISHE OF BIGHORN, LLC, a California limited liability company ("Covenantor"), hereby enters into a covenant with the CITY OF PALM DESERT, a municipal corporation ("Covenantee"), in the County of Riverside, State of California, regarding the future use of land, over all that real property situated in the City of Palm Desert, County of Riverside, State of California, described on Exhibit "A" attached hereto and incorporated by this reference. THIS COVENANT OF EASEMENT FOR CONSERVATION ("Covenant of Easement") is made this _ day of August, 2012 by Covenantor in favor of Covenantee with reference to the following facts: RECITALS A. Covenantor is the sole owner in fee simple of certain real property in the County of Riverside, State of California, more particularly described in Exhibit "A" attached hereto and incorporated by this reference (the "Property"). B. Exhibit "B" depicts the area of the Property that will be developed, and the 8.72 acre area of the Property that will be preserved under this Covenant of Easement (the "Conserved Property"). C. Covenantor has applied to the Department of the Army, Los Angeles District Corps of Engineers (the "Corps of Engineers") for a Department of the Army Permit to discharge fill into waters of the United States in association with Covenantor's proposed development of the Property (the "Permit"). Covenant of Easement Page 1 of 6 G:\planning\lauri aylaian\covenant of easement for conservation — cornishe 8-3-12.docx D. Pursuant to that certain letter (the "Corps Letter") from the Corps of Engineers to Covenantor dated as of May 18, 2012, the Corps of Engineers agreed to issue the Permit subject to Covenantor's compliance with certain non -discretionary approvals, including the recordation of a conservation easement obligating Covenantor, and its successors and assigns, to protect and maintain the Conserved Property as natural open space in perpetuity. E. This Covenant of Easement shall impart notice to all persons to the extent afforded by the recording laws of the State of California regarding the restrictions affecting use of the Conserved Property. COVENANTS, TERMS, CONDITIONS AND RESTRICTIONS In consideration of the above recitals and the mutual covenants, terms, conditions, and restrictions contained herein, and pursuant to California law, Covenantor hereby voluntarily conveys to Covenantee a Covenant of Easement in perpetuity over the Conserved Property. 1. Purpose. The purpose of this Covenant of Easement is to ensure that the Conserved Property will be retained in perpetuity in a natural condition and to prevent any development of the Conserved Property. Covenantor intends that this Covenant of Easement will confine the use of the Conserved Property to such activities, including without limitation, activities that will preserve environmentally sensitive lands in a manner consistent with the purpose of this Covenant of Easement. 2. Covenantee's Rights. To accomplish the purposes of this Covenant of Easement, Covenantor hereby grants and conveys the following rights to Covenantee by this Covenant of Easement: (a) To preserve and protect any sensitive biological resources of the Conserved Property; (b) To enter upon the Property at reasonable times in order to monitor Covenantor's compliance with and to otherwise enforce the terms of this Covenant of Easement, provided that Covenantee shall first notify and obtain consent from Covenantor, which consent shall not be unreasonably withheld, and further provided that Covenantee shall not unreasonably interfere with Covenantor's use and quiet enjoyment of the Property; (c) To prevent any activity on or use of the Conserved Property that is inconsistent with the purposes of this Covenant of Easement and to require the restoration of such areas or features of the Conserved Property that may be damaged by any act, failure to act, or any use that is inconsistent with the purposes of this Covenant of Easement; (d) All mineral, air and water rights necessary to protect and to sustain the environmentally sensitive nature of any sensitive biological resources of the Conserved Property; and (e) All present and future development rights to the Conserved Property. Covenant of Easement Page 2of6 Wplanning\lauri aylaian\covenant of easement for conservation — cornishe 5-3-12.docx 3. Prohibited Uses. Any activity on or use of the Conserved Property inconsistent with the purposes of this Covenant of Easement is prohibited. Without limiting the generality of the foregoing, the following uses by Covenantor, Covenantor's agents, and third parties within Covenantor's control are expressly prohibited: the establishment of fuel modification zones, paved public trails, drainage facilities, walls, maintenance access roads and/or future easements, except as provided in the Project Description described in, and/or Exhibit 1 attached to, the Corps Letter. 4. Covenantor's Duties. Covenantor shall execute this Covenant of Easement in favor of the City of Palm Desert and record this Covenant of Easement against title to the Property with the Riverside County Recorder. 5. Reserved Rights. Covenantor reserves to itself, and to its personal representatives, heirs, successors, and assigns the following rights: (a) All rights accruing from its ownership of the Property, including the right to engage in or to permit or invite others to engage in all uses of the Property that are consistent with the purposes of this Covenant of Easement. (b) The right to perform brush management activities. (c) The right of ingress and egress for the construction and maintenance of utilities and public facilities within any easements of record as of the date of recordation of this Covenant of Easement. (d) The right to construct, repair or relocate fences. 6. Access. This Covenant of Easement does not convey a general right of access to the public. 7. Costs and Liabilities. Covenantor shall be responsible for, and shall bear and pay for all costs and liabilities associated with, the ownership, operation, upkeep, and maintenance of the Property. Without limiting the generality of the foregoing, Covenantor shall be responsible for entering into any maintenance contracts with third -party vendors to perform any and all maintenance required to be performed by Covenantor with respect to the Conserved Property. Notwithstanding anything to the contrary contained herein, it is understood between the parties that the easement rights conveyed by this Covenant are expressly subject to all matters of record as of the effective date of this Covenant and are conveyed in an "AS IS" condition. 7.1 Taxes. Covenantor shall pay before delinquency all taxes, assessments, fees, and charges of whatever description levied on or assessed against the Property by competent authority, including any taxes imposed upon, or incurred as a result of, this Covenant of Easement, and shall furnish Covenantee with satisfactory evidence of payment upon request. 7.2 Indemnity of Covenantee. Subject to the provisions of Section 7.3 below, Covenantor shall hold harmless, indemnify, and defend Covenantee and its, directors, officers, employees, agents, contractors, and representatives (collectively "Covenantee Indemnified Parties") from and against all liabilities, penalties, costs, losses, damages, expenses, causes of action, claims, Covenant of Easement Page 3of6 GAplanning\lauri aylaian\covenant of easement for conservation — cornishe 8-3-12.docx demands, or judgments, including without limitation, reasonable attorneys' fees, arising from or in any way connected with injury to or the death of any person, or physical damages to any property, resulting from any act, omission, condition, or other matter related to or occurring on or about the Property, regardless of cause, unless due to the negligent or intentional acts or omissions of any of the Covenantee Indemnified Parties. 7.3 Indemnity of Covenantor. Subject to the provisions of Section 7.2 above, Covenantee shall hold harmless, indemnify, and defend Covenantor and its, directors, officers, employees, agents, contractors, and representatives (collectively "Covenantor Indemnified Parties") from and against all liabilities, penalties, costs, losses, damages, expenses, causes of action, claims, demands, or judgments, including without limitation, reasonable attorneys' fees, arising from or in any way connected with injury to or the death of any person, or physical damages to any property, resulting from any act, omission, condition, or other matter related to or arising out of Covenantee's (or Covenantee's directors, officers, employees, agents, contractors, and representatives) entry onto the Conserved Property unless due to the negligent or intentional acts or omissions of any of the Covenantor Indemnified Parties. 8. Notices. Any notice, demand, request, consent, approval, or communication that either party desires or is required to give to the other shall be in writing and be served personally or sent by first class mail, postage prepaid, addressed as follows: To Covenantor: Mr. Fred T. Franzia Cornishe of Bighorn, LLC c/o Patrick Perry, Esq. Allen Matkins Leck Gamble Mallory & Natsis, LLP 515 South Figueroa Street, 91h Floor Los Angeles, California 90071 To Covenantee: City of Palm Desert Attn: City Manager 73-510 Fred Waring Drive Palm Desert, CA 92260 or to such other address as either party shall designate by written notice to the other. Notice shall be deemed effective upon delivery in the case of personal delivery or, in the case of delivery by first class mail, three (3) days after deposit into the United States mail. 9. Release of Covenant. A hearing shall be held to consider any formal, written request directed to Covenantee by any person requesting the release of this Covenant of Easement, whether or not that person has title to all or any portion of the Property. Covenantee shall record the release of this Covenant of Easement when it is determined that the restriction ensured by the Covenant of Easement is no longer necessary to achieve the goals of Covenantee. A determination by Covenantee to release the Covenant of Easement may be made only with the written concurrence of the Corps of Engineers. 10. Amendment. This Covenant of Easement may be amended by Covenantor and Covenantee by mutual written agreement. Any such amendment shall be consistent with the Covenant of Easement Page 4 of 6 GAplanning\lauri aylaian\covenant of easement for conservation — cornishe 8-3-12.docx purpose of this Covenant of Easement and, except as provided in Section 9 above, shall not affect its perpetual duration. Any such amendment shall be recorded in the Office of the Riverside County Recorder. 11. General Provisions. (a) Controlling Law. The interpretation and performance of this Covenant of Easement shall be governed by the laws of the State of California. (b) Severability. If a court of competent jurisdiction voids or invalidates on its face any provision of this Covenant of Easement, such action shall not affect the remainder of this Covenant of Easement. If a court of competent jurisdiction voids or invalidates the application of any provision of this Covenant of Easement to a person or circumstance, such action shall not affect the application of the provision to other persons or circumstances. (c) Entire Agreement. This instrument sets forth the entire agreement of the parties with respect to the Covenant of Easement and supersedes all prior discussions, negotiations, understandings, or agreements relating to the Covenant of Easement. No alteration or variation of this instrument shall be valid or binding unless contained in an amendment in accordance with Section 10 above. (d) No Forfeiture. Nothing contained herein will result in a forfeiture or reversion of Covenantor's title in any respect. (e) Successors. The covenants, terms, conditions, and restrictions of this Covenant of Easement shall be binding upon, and inure to the benefit of, the parties hereto and their respective personal representatives, heirs, successors, and assigns and shall continue as a servitude running in perpetuity with the Property. (f) Termination of Rights and Obligations. A party's rights and obligations under this Covenant of Easement terminate upon transfer of the party's interest in the Covenant of Easement, except that liability for acts or omissions occurring prior to transfer shall survive transfer. (g) Attorney, sus. Should any party hereto commence any action or proceeding to enforce any provision of this Agreement or for damages by reason of an alleged breach of any provision of this Agreement or for declaratory relief or specific performance, the prevailing party shall be entitled to recover from the losing party or parties such amount as the court may adjudge to be reasonable attorneys' fees for services rendered to the prevailing party in such action or proceeding. (h) Captions. The captions in this instrument have been inserted solely for convenience of reference and are not a part of this instrument and shall have no effect upon construction or interpretation . (i) Counterparts. The Parties may execute this instrument in two or more counterparts, which shall, in the aggregate, be signed by both parties; each counterpart shall be Covenant of Easement Page 5of6 Wplanning\lauri aylaian\covenant of easement for conservation — cornishe 8-3-12.docx deemed an original instrument as against any party who has signed it. In the event of any disparity between the counterparts produced, the recorded counterpart shall be controlling. IN WITNESS WHEREOF, Covenantor and Covenantee have entered into this Covenant of Easement the day and year first above written. Covenantor: CORNISHE OF BIGHORN, LLC, a California limited liability company By: Name: Title: Covenantee: CITY OF PALM DESERT, a municipal corporation By: Name: Robert A. Spiegel Title: Mayor This is to certify that the interest in real property conveyed by this instrument to the City of Palm Desert, a municipal corporation, is hereby accepted by the undersigned officer on behalf of the City of Palm Desert, pursuant to authority conferred by the Municipal Code and the covenantee consents to recordation thereof by its duly authorized officer. By: Name: Date NOTE. NOTARY ACKNOWLEDGMENTS FOR SIGNATURES MUST BE ATTACHED Covenant of Easement Page 6of6 Wplanning\lauri aylaian\covenant of easement for conservation — cornishe 8-3-12.docx EXHIBIT A LEGAL DESCRIPTION OF THE PROPERTY REAL PROPERTY IN THE CITY OF PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, DESCRIBED AS FOLLOWS: PARCEL 1: THAT PORTION OF THE SOUTH 1/2 OF THE NORTHEAST 1/4 OF SECTION 6, TOWNSHIP 6 SOUTH, RANGE 6 EAST, SAN BERNARDINO MERIDIAN, ACCORDING TO UNITED STATES GOVERNMENT SURVEY THEREOF, DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWEST CORNER OF SAID SOUTH 1/2, THENCE NORTH 00°49'30" WEST ALONG THE WESTERLY LINE OF SAID SOUTH 1/2, 152.6 FEET; THENCE NORTH 60°50'20" EAST, 821.28 FEET; THENCE NORTH 71 ° 14' EAST, 487.36 FEET; THENCE SOUTH 3°04'30" WEST, 693.08 FEET; THENCE NORTH 89°57' WEST ALONG THE SOUTHERLY LINE OF SAID SOUTH 1/2, 1159.32 FEET MORE OR LESS TO THE POINT OF BEGINNING. PARCEL 2: A NON-EXCLUSIVE ROAD EASEMENT 30 FEET IN WIDTH AS RESERVED BY GWYNN WILSON AND MARION B. WILSON IN DEED RECORDED OCTOBER 23, 1959 AS INSTRUMENT NO. 90727 OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA, DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTHWEST CORNER OF THE SAID SOUTH HALF; THENCE NORTH 00°49'30" WEST ALONG THE WESTERLY LINE OF THE SAID SOUTH HALF, 152.61 FEET; THENCE NORTH 60°50'20" EAST, 730 FEET TO THE POINT OF BEGINNING; THENCE NORTH 16°54' WEST, 480 FEET; THENCE NORTH 43°04' WEST, 209.40 FEET; THENCE NORTH 02°24' WEST, 150 FEET MORE OR LESS TO THE NORTHERLY LINE OF SAID SOUTH HALF, WHICH POINT IS THE NORTHERLY OF THE HEREIN DESCRIBED CENTER LINE; THENCE WEST ALONG THE NORTH LINE OF THE SAID SOUTH HALF TO THE WEST LINE OF THE SAID SOUTH HALF. APN: 771-030-008-6 Covenant of Easement — Exhibit A gAplanningVauri aylaian\cornishe exhibit A.docx Page 1 of 1 0 EXHIBIT 'B' SHEET 1 OF 1 CONSERVATION EASEMENT TRACT NO. 252961\ 3 MB 288/96-10511 LOT M •y j/ POR S 1/2, NE 1/4 SEC 69 T6S R 6 Ey SBM LOT M • O9, 45„E h8� •5� NI2 LOT J --' \ CYco 0 N O1 --' COD to o L2 m in z w 0• / U O �- J///i, z O 12 E 11.34 N89'44'38"E 1140.02' CENTER 1 /4 CORNER SEC 6, TPOB R S 72172 CURVE TABLE CURVE DELTA RADIUS ILENGTH C1 37'4945" 130.00' 85.83' C2 23'50'03" 130.00' 54.08' C3 81'46'35" 50.00' 71.36' C4 19'02'22" 112.00' 37.22' C5 141'22'53" 52.00' 128.31' C6 39'59'29" 65.00' 45.37' C7 23*46'14" 242.00' 100.40' C8 42'52'20" 88.00' 65.85' LINE LINE _TABLE BEARING LENGTH L1 N05'08'10"W 149.18 L2 N54'30'47"E 5.36 RCE Consultants, Inc. 23M NU Cf3$C DWE. SIM W5 LAGUNA F# IS. CAl1F{ r A 92653 (949) 453 Om RD9 (949) 453 0411 LEGEND: �ZGI PROPOSED CONSERVATION EASEMENT N SCALE: 1 "= 200' �40 LaNpS pM E. syG�G 3� EXPIRES d1e 0 a SEPT. 30, 2013 a o 1t N No.4725 WILLIAM E. SN DATE 'r �? P.L.S. NO. 47 5 of Ca4\�° REG. EXP: 09 0/1 SKETCH TO ACCOMPANY SCALE: AS —SHOWN A LEGAL DESCRIPTION DRAWN BY: REP CITY OF CHECKED BY: WES PALM DESERT DATE: 08-14-12 CONSERVATION EASEMENT JOB No. 03340.04 Al C 0 U L W a q d a J x i 0 v M C3 0 11 GL Page 1 of 3 RCE CONSULTANTS, INC. 23332 MILL CREEK DRIVE, SUITE 205 LAGUNA HILLS, CA 92653 AUGUST 14, 2012 EXHIBIT "A" LEGAL DESCRIPTION FOR CONSERVATION EASEMENT THAT PORTION OF THE SOUTH HALF OF THE SOUTHEAST QUARTER OF SECTION 6, T 6 S, R 6 E, SBM, IN THE CITY OF PALM DESERT, COUNTY RIVERSIDE, STATE OF CALIFORNIA, SHOWN AS "NOT A PART" ON TRACT NO.25296-3 FILED IN BOOK 288 PAGES 96 THROUGH 105, INCLUSIVE, OF RECORD MAPS, RECORDS IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT THE CENTER ONE QUARTER CORNER OF SAID SECTION 6 AS SHOWN ON SAID TRACT 25296-3; THENCE ALONG THE WESTERLY AND NORTHWESTERLY AND EASTERLY LINES OF SAID "NOT A PART" PARCEL THROUGH THE FOLLOWING FOUR COURSES: 1) NORTH 00-06-15" EAST 152.61 FEET; 2) NORTH 61 °46'05" EAST 821.28 FEET; 3) NORTH 72-09-45" EAST 487.57 FEET; 4) THENCE SOUTH 04-0015" WEST 262.89 FEET; THENCE LEAVING SAID "NOT A PART" PARCEL, SOUTH 54°30'47" WEST 5.36 FEET TO THE BEGINNING OF A CURVE CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 112.00 FEET; THENCE SOUTHWESTERLY ALONG SAID CURVE 37.22 FEET THROUGH A CENTRAL ANGLE OF 19002'22'; THENCE NORTH 05008'10" WEST 149.18 FEET TO THE BEGINNING OF A CURVE CONCAVE SOUTHWESTERLY HAVING A RADIUS OF 50.00 FEET; THENCE NORTHWESTERLY ALONG SAID CURVE 71.36 FEET THROUGH A CENTRAL ANGLE OF 81046'35"; THENCE SOUTH 64°04'04" WEST 30.27 FEET; THENCE SOUTH 67023'52" WEST 120.87 FEET; THENCE SOUTH 62003'46" WEST 42.32 FEET TO THE BEGINNING OF A CURVE CONCAVE NORTHERLY HAVING A RADIUS OF 130.00 FEET; THENCE WESTERLY ALONG SAID CURVE 54.08 FEET THROUGH A CENTRAL ANGLE OF 23°50'03'; THENCE SOUTH 85053'49" WEST 32.83 FEET TO THE BEGINNING OF A CURVE CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 130.00 FEET; FA JOB\2011\03340\XSurvey\Lcga]Descriptions\LEGAL-Esrnt-Conseivation.doc Page 2 of 3 THENCE SOUTHWESTERLY ALONG SAID CURVE 85.83 FEET THROUGH A CENTRAL ANGLE OF 37049'45'; THENCE SOUTH 48004'04" WEST 90.44 FEET TO THE BEGINNING OF A NON TANGENT CURVE CONCAVE SOUTHWESTERLY HAVING A RADIUS OF 771.23 FEET, A RADIAL LINE OF SAID CURVE FROM SAID POINT BEARS SOUTH 32051'19" WEST; THENCE SOUTHEASTERLY ALONG SAID CURVE 7,47 FEET THROUGH A CENTRAL ANGLE OF 00033'17" TO THE BEGINNING OF A COMPOUND CURVE CONCAVE SOUTHWESTERLY HAVING A RADIUS OF 765.00 FEET, A RADIAL LINE OF SAID CURVE FROM SAID POINT BEARS SOUTH 33"24'36" WEST; THENCE SOUTHEASTERLY ALONG SAID CURVE 232.62 FEET THROUGH A CENTRAL ANGLE OF 17025'20"; THENCE SOUTH 39010'04" EAST 145.17 FEET; THENCE NORTH 90000'00" EAST 84.16 FEET; THENCE NORTH 36037'12" EAST 11.34 FEET TO THE BEGINNING OF A NON TANGENT CURVE CONCAVE NORTHWESTERLY HAVING A RADIUS OF 52.00 FEET, A RADIAL LINE OF SAID CURVE FROM SAID POINT BEARS NORTH 36037'12" EAST; THENCE NORTHEASTERLY ALONG SAID CURVE 128.31 FEET THROUGH A CENTRAL ANGLE OF 141022'53" TO THE BEGINNING OF A REVERSE CURVE CONCAVE EASTERLY HAVING A RADIUS OF 65.00 FEET, A RADIAL LINE OF SAID CURVE FROM SAID POINT BEARS NORTH 75014'19" EAST; THENCE NORTHERLY ALONG SAID CURVE 45.37 FEET THROUGH A CENTRAL ANGLE OF 39059'29" TO THE BEGINNING OF A REVERSE CURVE CONCAVE WESTERLY HAVING A RADIUS OF 242.00 FEET, A RADIAL LINE OF SAID CURVE FROM SAID POINT BEARS NORTH 64046'12" WEST; THENCE NORTHERLY ALONG SAID CURVE 100.40 FEET THROUGH A CENTRAL ANGLE OF 23°46'14" TO THE BEGINNING OF A REVERSE CURVE CONCAVE SOUTHEASTERLY HAVING A RADIUS OF 88.00 FEET, A RADIAL LINE OF SAID CURVE FROM SAID POINT BEARS SOUTH 88032'26" EAST; THENCE NORTHEASTERLY ALONG SAID CURVE 65.85 FEET THROUGH A CENTRAL ANGLE OF 42052'20" TO THE EASTERLY LINE OF SAID "NOT A PART" PARCEL; THENCE ALONG THE EASTERLY AND SOUTHERLY LINES OF SAID "NOT A PART" PARCEL THROUGH THE FOLLOWING TWO COURSES: 1) SOUTH 04°00'15" WEST 391.26 FEET; FAJOB\201 I\03340\XSurvey\LegalDescriptions\LEGAL-Psmt-Conservation.doc Page 3 of 3 2) SOUTH 89°44-38" WEST 1,140.02 FEET TO THE TRUE POINT OF BEGINNING. CONTAINING: 8.747 ACRES, MORE OR LESS. EXHIBIT " B" ATTACHED AND BY THIS REFERENCE MADE A PART HEREOF. SUBJECT TO: COVENANTS, CONDITIONS, RESERVATIONS, RESTRICTIONS RIGHTS, RIGHTS OF WAY AND EASEMENTS OF RECORD, IF ANY. THIS DESCRIPTION PREPARED BY ME OR UNDER MY DIRECTION, 0 L WILLIAM E. SNOW i UATE P.L.S. N0.4701 REG. EXP: f 30/ I: - 0 ` No, 4725 Exp. C 3� �r `M. OF Ct�\\�o F:V OB\2011 \03340\XSurvey\Legal Descriptions\I.EGA[,-Esmt-Con servation.doc RECORDING REQUESTED BY: City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 Attn: City Attorney MAIL TO: City of Palm Desert ) 73-510 Fred Waring Drive ) Palm Desert, CA 92260 ) Attn: City Clerk ) Space Above Line for Recorder's Use Only CONSERVATION EASEMENT THIS CONSERVATION EASEMENT is made this day of , 2012 by Stone Eagle Association, a California non-profit mutual benefit corporation ("Grantor") in favor of the City of Palm Desert, a California municipal corporation (herein "Grantee") with reference to the following facts: RECITALS A. Grantor is the sole owner in fee simple of certain real property in the City of Palm Desert, County of Riverside, State of California, legally described on Exhibit "A" as depicted on Exhibit "B" attached hereto and incorporated by this reference ("Property"). The Property consists of not less than 4.51 acres and bears APN 652-020-013-9 and APN 652-070-036-5. B. The Property provides mitigation for certain impacts of the development commonly referred to as Stone Eagle (the "Project") by Stone Eagle Development, LLC, predecessor -in -interest to Stone Eagle, LLC, ("Developer'), located in the City of Palm Desert, County of Riverside, State of California, pursuant to requirements of 1. The United States Army Corps of Engineers' ("ACOE") Section 404 Permit No. 2002-01135-RRS and any amendments thereto ("Section 404 Permit"); and 2. The Agreement Regarding Proposed Activities Subject to California Fish and Game Code Section 1603 and any amendments thereto (the "Streambed Alteration Agreement"), issued by the California Department of Fish and Game ("CDFG"); and 3. Biological Opinion No. ERIV 3080.2 dated November 1, 2003 (the "Biological Opinion" or "BO") issued by the United States Fish and Wildlife Service ("USFWS"); and 4. The City of Palm Desert's Planning Commission Resolution 2155, dated October 1, 2002 and the City of Palm Desert's Ordinance 1028. 300081746.2 All of the foregoing shall hereafter be collectively referred to as the "Agency Permits." C. This Conservation Easement is designed to satisfy and is granted in partial satisfaction of Special Condition 4 of the Section 404 Permit which requires recordation of a Conservation Easement over the Compensatory Mitigation (defined below) areas and water quality stormwater basin (the "Basin") constructed as part of the Project. D. Consistent with the terms and conditions of this Conservation Easement, the Property is and will remain in a Natural Condition as defined herein and is intended to be preserved in its natural, scenic, open condition to maintain its ecological, historical, visual and educational values (collectively, "Conservation Values"), and these Conservation Values are consistent with the habitat conservation purposes of this Conservation Easement. The Conservation Values are of importance to the people of the County of Riverside and the people of the State of California and United States. E. Grantee is authorized to hold conservation easements pursuant to Civil Code Section 815.3. Specifically, Grantee is an entity identified in Civil Code Section 815.3 and otherwise authorized to acquire and hold title to real property. F. The Developer has agreed to enter into this Conservation Easement for the purpose of undertaking certain obligations identified herein. G. The ACOE is the Federal agency charged with regulatory authority over discharges of dredged and fill material in waters of the United States pursuant to Section 404 of the Clean Water Act, and is a third party beneficiary of this Conservation Easement. COVENANTS TERMS CONDITIONS AND RESTRICTIONS In consideration of the above recitals and the mutual covenants, terms, conditions, and restrictions contained herein, and pursuant to laws of the United States and state of California, including Civil Code Section 815, et seq., Grantor hereby voluntarily grants and conveys to Grantee a conservation easement in perpetuity over the Property of the nature and character and to the extent hereinafter set forth ("Conservation Easement"). This Conservation Easement shall run with the land and be binding on Grantor's heirs, successors, administrators, assigns, lessees, and other occupiers or users of the Property or any portion of it. 1. Purpose. (a) The purposes of this Conservation Easement are to ensure the Property, although portions are man-made, will be preserved in a Natural Condition, as defined herein, in perpetuity and to prevent, subject to the duties and rights retained by Grantor hereunder, any other use of the Property that will impair or interfere with the Conservation Values of the Property, as long as such uses or restrictions are consistent with the maintenance and management activities associated with the Basin and are consistent with the concepts contained in this Section 1(a) (the "Purpose"). Grantor intends that the Basin, which comprise portions of the Property, will be subject to routine maintenance and upkeep on at least an annual basis. Growth of vegetation and accumulated sediment within the Basin will be cleared periodically so as not to impair the hydrologic and water quality function of the Basin. Grantor intends that this IWM 300081746.2 Conservation Easement will confine the use of the Property to such activities, including without limitation, those involving the preservation and enhancement of native species and their habitat, in a manner consistent with the habitat conservation and water quality stormwater basin purposes of this Conservation Easement and those rights retained herein. (b) The term "Natural Condition," as referenced in the preceding paragraph and other portions of this Conservation Easement, shall mean the condition of the Property, as it exists at the time this Conservation Easement is executed, as well as future enhancements or changes to the Property that occur directly as a result of the following activities: (1) Compensatory mitigation measures, including implementation, maintenance, and monitoring activities (collectively, "Compensatory Mitigation") required by the Agency Permits and as described in the Final Habitat Mitigation and Monitoring Plan dated February 24, 2004 ("Mitigation Plan"), a copy of which is attached as Exhibit "C;" (2) In -perpetuity maintenance ("Long -Term Maintenance") that occurs on the Property as described in Section 20 herein; or (3) Activities described in Section 4, Section 8 and Section 20 herein. (c) Grantor certifies to Grantee and ACOE, that to Grantor's actual knowledge the only man-made structures or improvements existing on the Property at the time this grant is executed consist of the Basin and revegetation efforts. Grantor further certifies to Grantee and ACOE that, to Grantor's actual knowledge, there are no previously granted easements, limitations, restrictions, dedications, rights of way or encumbrances existing on the Property that interfere or conflict with the Purpose of this Conservation Easement as evidenced by the Preliminary Title Report attached at Exhibit "D". The current Natural Condition is evidenced in part by the depiction of the Property attached on Exhibit "E," showing all relevant and plottable property lines, easements, dedications. Grantor has delivered further evidence of the current Natural Condition to Grantee and ACOE consisting of (1) an aerial photograph of the Property at an appropriate scale taken as close in time as possible to the date this Conservation Easement is executed; (2) an overlay of the Property boundaries on such aerial photograph; and (3) on -site photographs showing all man-made improvements or structures (if any) and the major, distinct natural features of the Property. (d) If a controversy arises with respect to the current Natural Condition of the Property, Developer, Grantor, Grantee, or ACOE as a third party beneficiary, or any designees or agents of Grantor, Developer, Grantee, and ACOE shall not be foreclosed from utilizing any and all other relevant documents, surveys, photographs or other evidence or information to assist in the resolution of the controversy. (e) The term "Biological Monitor" shall mean an independent third -party consultant possessing knowledge of aquatic resources in the Riverside County area and expertise in the field of biology or a related field. 2. Grantee's Rights. To accomplish the Purpose of this Conservation Easement, Grantor, its successor and assign hereby grants and conveys the following rights to Grantee. -3- 300081746.2 Subject to and in accordance with Section 10(a), these rights are also granted to ACOE or its designees as a third party beneficiary of this Conservation Easement: (a) To preserve and protect the Conservation Values of the Property; and (b) To enter upon the Property at reasonable times in order to monitor compliance with and to otherwise enforce the terms of this Conservation Easement provided that Grantee shall not unreasonably interfere with Grantor's use and quiet enjoyment of the Property; and (c) To prevent any activity on or use of the Property that is inconsistent with the Purpose of this Conservation Easement and to require the restoration of such areas or features of the Property that may be damaged by any act, failure to act, or any use that is inconsistent with the Purpose of this Conservation Easement; and (d) All mineral, air, and water rights necessary to protect and to sustain the biological resources of the Property, provided that any exercise of such rights by Grantee shall not result in conflict with such Conservation Values; and (e) Except as provided in Section 8, the right to all present and future development rights allocated, implied, reserved or inherent in the Property; such rights are hereby terminated and extinguished, and may not be used on or transferred to any portion of the Property, nor any other property adjacent or otherwise; and (f) The right to enforce by any means available at law or equity, including, without limitation, injunctive relief, the terms and conditions of this Conservation Easement. 3. Developer's Rights. To accomplish the Purpose of this Conservation Easement as described in Section 1, Grantor hereby grants to the Developer the following rights: (a) The right to enter the Property to conduct the activities required under the Agency Permits and the Mitigation Plan to implement the Compensatory Mitigation requirements, including but not limited to the following activities: (1) remove trash and debris; (2) excavate and regrade the surface as appropriate for detention and flow of water for wetlands; (3) eradicate weeds and non-native plants; (4) install and maintain irrigation system; (5) prepare the site for native seeding and planting, including amending soils; (6) install native seeds and container plants; and (7) maintain, restore and monitor the wetlands; and (b) Upon issuance of final approval from the ACOE of the success of Developer's construction, maintenance and monitoring of mitigated areas pursuant to the Mitigation Plan, Developer's right to enter the Property pursuant to Section 3(a), above, shall cease. 4. Prohibited Uses. Any activity on or use of the Property inconsistent with the Purpose of this Conservation Easement and not reserved as a right of Grantor is prohibited. Without limiting the generality of the foregoing, the following uses by Grantor, Grantee, Developer and their respective guests, agents, assigns, employees, representatives, successors, and third parties within their control are expressly prohibited on the Property except as otherwise 300081746.2 provided herein or unless specifically provided for in the Agency Permits, Mitigation Plan, and any easements and reservations of rights recorded in the chain of title to the Property at the time of this conveyance (as set forth on Exhibit D hereto): (a) Unseasonable or supplemental watering except for habitat enhancement activities described in Section 8(b) or the Mitigation Plan; (b) Use of herbicides, pesticides, biocides, fertilizers, or other agricultural chemicals or weed abatement activities, except weed abatement activities necessary to control or remove invasive species pursuant to Section 8 or the Mitigation Plan; (c) Incompatible fire protection activities except fire prevention activities set forth in Section 8, (d) Use of off -road vehicles and use of any other motorized vehicles except in the execution of management duties; (e) Use of plants for landscaping or other purposes that are invasive or pose a health threat to wildlife; (f) Grazing or other agricultural activity of any kind; (g) Surface entry for exploration or extraction of minerals of any kind; (h) Recreational activities including, but not limited to, horseback riding, biking, hunting or fishing; (i) Residential, commercial, retail, institutional or industrial uses; 0) Any legal or de facto division, subdivision or portioning of the Property; (k) Construction, reconstruction or placement of any building or other improvement, billboard, or sign except the Basin and those signs specifically allowed under Section 5(d) and Section 8(d); (1) Dumping, depositing or accumulating soil, trash, ashes, refuse, waste, bio- solids or any other material; (m) Planting, introduction or dispersal of non-native or exotic plant or animal species; (n) Filling, dumping, excavating, draining, dredging, mining, drilling, removing or exploring for or extraction of minerals, loam, gravel, soil, rock, sand or other material on or below the surface of the Property; (o) Altering the general topography of the Property, including but not limited to building of roads, flood control work, and trails, except for maintaining the Basin as shown on -5- 300081746.2 Exhibit "B" in accordance with Section 8(g) and completing the Mitigation Plan on the Property or as provided in Section 20; (p) Removing, destroying, or cutting of trees, shrubs or other vegetation, except for (1) emergency fire breaks as required by fire safety officials as set forth in Section 8D, (2) prevention or treatment of disease, (3) maintenance of the Basin as set forth in Section 8(g), (4) control of invasive species which threaten the integrity of the habitat, (5) completing the Mitigation Plan, or (6) activities described in Sections 5-8 and Section 20; (q) Activities or uses detrimental to water quality, including but not limited to degradation or pollution of any surface or sub -surface waters except as necessary to implement the Mitigation Plan or any right reserved in Section 8 or Section 20; and (r) Creating, enhancing or maintaining fuel modification zones (defined as a strip of mowed land or the planting of vegetation possessing low combustibility for purposes of fire suppression) or other activities that could constitute fuel modification zones. 5. Grantor's Duties. To accomplish the Purpose of this Conservation Easement as described in Section 1, Grantor, its successors and assigns shall: (a) Undertake all reasonable actions to prevent the unlawful entry and trespass by persons whose activities may degrade or harm the Conservation Values of the Property. In addition, Grantor shall undertake all necessary actions to grant Grantee's rights under Section 2 of this Conservation Easement; and (b) Cooperate with Grantee in the protection of the Conservation Values; and (c) Repair and restore damage to the Conservation Easement directly or indirectly caused by Grantor, Grantor's guests, representatives, employees or agents, and third parties within its control, provided, however, Grantor, its successors or assigns shall not engage in any repair or restoration work in the Property without first consulting with the ACOE; and (d) Install signs as described in Section 8(d) deemed necessary by Grantee and/or ACOE to manage human disturbance of the Property and maintain and replace such signs in accordance with Section 20 herein; and (e) Upon receipt of ACOE final approval, perform Long -Term Maintenance of the Property as described in Section 20 herein and conduct any other activities necessary for the maintenance and protection of this Conservation Easement in order to preserve wildlife and wetland/water quality values in perpetuity; and (f) Obtain any applicable governmental permits and approvals for any activity or use permitted by this Conservation Easement, and any activity or use shall be undertaken in accordance with all applicable federal, state, local and administrative agency statutes, ordinances, rules, regulations, orders or requirements. 6. Grantee's Duties. To accomplish the Purpose of this Conservation Easement as described in Section 1, Grantee, its successors and assigns shall: Ir'� 300081746.2 (a) Prevent any activity on or use of the Property that is inconsistent with the Purpose of this Conservation Easement; and (b) Perform at least quarterly compliance inspections of the Property, prepare an annual inspection report (the "Annual Inspection Report") that documents the annual inspection results that substantially follows the form attached in Exhibit "F" attached hereto, and make the Annual Inspection Report available to ACOE upon request. 7. Developer's Duties. To accomplish the Purpose of this Conservation Easement as described in Section 1, Developer shall: (a) Undertake construction, maintenance and monitoring of mitigated areas pursuant to the Mitigation Plan until issuance of final approval from the ACOE confirming that Developer has successfully completed construction, maintenance and monitoring of mitigated areas pursuant to the Mitigation Plan; and (b) Cooperate with Grantee in the protection of the Conservation Values; and (c) Repair and restore damage to the Conservation Easement directly caused by Developer, Developer's guests, representatives, employees or agents, and third parties under the control of Developer; provided, however, Developer, its successors or assigns shall not engage in any repair or restoration work on the Property without first consulting with Grantee and ACOE; and (d) Obtain any applicable governmental permits and approvals for any activity or use permitted by this Conservation Easement, and any activity or use shall be undertaken in accordance with all applicable federal, state, local and administrative agency statutes, ordinances, rules, regulations, orders or requirements; and (c) Upon receipt of the final approval of the success of the mitigation from the ACOE, Developer's duties under this Conservation Easement shall cease and Developer shall have no further obligations whatsoever with respect to the Property. 8. Reserved Rights. Grantor reserves to itself, and to its personal representatives, heirs, successors, and assigns, all rights accruing from its ownership of the Property, including the right to engage in or to permit or invite others to engage in all uses of the Property that are not expressly prohibited or limited by, and are consistent with the Purpose of this Conservation Easement, including the following uses: (a) Access. Reasonable access through the Property to adjacent land over existing roads, or to perform obligations or other activities permitted by this Conservation Easement or that are required under the Agency Permits. (b) Habitat Enhancement Activities. Enhancement of native plant communities, including the right to plant trees and shrubs of the same type as currently existing on the Property, so long as such activities do not harm the habitat types identified in the Section 404 Permit or Mitigation Plan. For purposes of preventing erosion and reestablishing native -7- 300081746.2 vegetation, the Grantor shall have the right to revegetate areas that may be damaged by the permitted activities under this Section 8, naturally occurring events or by the acts of persons wrongfully damaging the Natural Condition of the Property. Prior to any habitat enhancement activities, Grantor shall have its Biological Monitor submit detailed plans to the Grantee and ACOE for review and approval. Habitat enhancement activities shall not be in direct or potential conflict with the preservation of the Natural Condition of the Property or the Purpose of this Conservation Easement and shall be performed in compliance with all applicable laws, regulations, and permitting requirements. (c) Vegetation Debris and Exotic Species Removal. Removal or trimming of vegetation downed or damaged due to natural disaster, removal of man-made debris, removal of parasitic vegetation (as it relates to the health of the host plant) and removal of non-native or exotic plant or animal species. Vegetation, debris, and exotic plant species removal shall not be in direct or potential conflict with the preservation of the Natural Condition of the Property or the Purpose of this Conservation Easement and shall be performed in compliance with all applicable laws, regulations, and permitting requirements. (d) Erection and Maintenance of Informative Signage. Erection and maintenance of signage and other notification features saying "Natural Area Open Space," "Protected Natural Area," or similar descriptions that inform persons of the nature and restrictions on the Property. Prior to erection of such signage, the Grantor shall submit detailed plans showing the location and language of such signs to the Grantee and ACOE for review and approval. The erection and maintenance of informative signage shall not be in direct or potential conflict with the preservation of the Natural Condition of the Property or the Purpose of this Conservation Easement and shall be performed in compliance with all applicable laws, regulations, and permitting requirements. (e) No Interference with Development of Adjoining Property. Notwithstanding anything set forth herein to the contrary, nothing in this Conservation Easement is intended nor shall be applied to in any way limit Grantor or any of Grantor's successors and assigns from (1) constructing, placing, installing, and/or erecting any improvements upon the portions of the Project not constituting the Property, (2) developing adjoining property for any purposes, except as limited by any local, state or federal permit requirements for such development and provided that for all of the above clauses (1) and (2) neither such activity nor any effect resulting from such activity amounts to a use of the Property, or has an impact upon the Property, that is prohibited by Section 4 above. (f) Fire Protection. The right, in an emergency situation only, to maintain firebreaks (defined as a strip of plowed or cleared land made to check the spread of a fire), trim or remove brush, otherwise perform preventative measures required by the fire department to protect structures and other improvements from encroaching fire. All other brush management activities shall be limited to areas outside the Property. (g) Basin. The right to maintain, repair, utilize, remove, and replace the Basin shown on Exhibit "B," and the right to access this structure. Maintenance of the Basin shall include, but not be limited to, those long-term maintenance activities such as (i) periodic inspection, (ii) vegetation removal, (iii) debris/sediment removal, (iv) rodent control, (v) outlet structure and spillway inspection or repair for cracking, movement, seepage, and piping, (vi) -8- 300081746.2 inspection or repair of embankment and slopes for seepage, piping, and instability, and (vii) if necessary, removal and replacement. Maintenance of the Basin shall be performed in compliance with all applicable statutes, regulations, and permitting requirements. 9. Principles of Conservation Presentation. Grantor's activities and Grantee's right to enforce the provisions of this Conservation Easement shall be guided by certain principles ("Principles"), including but not limited to the following: (a) Conservation in Perpetuity. Grantee's rights shall be exercised for their permanent benefits to the Conservation Values. (b) Natural Regeneration. Natural restoration shall be used if appropriate, based on the magnitude of the impact, the impacts on listed or sensitive species, and the estimated time for recovery to occur. (c) Limited Resources. No endowment is provided for the stewardship of the Property. Grantor has limited financial resources for funding activities in or about the Property. (d) Intent to Cooperate. Grantor and Grantee agree to cooperate in achieving the Purpose of this Conservation Easement. 10. Enforcement. (a) Right to Enforce. Grantor, its successors and assigns, grant to the ACOE, the U.S. Department of Justice, and the State Attorney General a discretionary right to enforce this Conservation Easement in a judicial or administrative action against any person(s) or other entity(ies) violating or attempting to violate this Conservation Easement; provided, however, that no violation of this Conservation Easement shall result in a forfeiture or reversion of title. The ACOE, U.S. Department of Justice, and the State Attorney General shall have the same rights, remedies and limitations as Grantee under this Section 10. The rights under this Section are in addition to, and do not limit rights conferred in Section 2 above, the rights of enforcement against Grantor and their successors or assigns under the Agency Permits, or any rights of the various documents created thereunder or referred to therein. (b) Notice. (1) If Grantee determines Grantor or Developer is in violation of the terms of this Conservation Easement or that a violation is threatened, Grantee may demand the cure of such violation. In such a case, Grantee shall issue a written notice to Grantor and/or Developer (hereinafter "Notice of Violation") informing Grantor and/or Developer of the violation and demanding cure of such violation. (2) Grantor and/or Developer, as appropriate, shall cure the noticed violation within fifteen (15) days of receipt of said written notice from Grantee. If said cure reasonably requires more than fifteen (15) days, Grantor and/or Developer shall, within the fifteen (15) day period, submit to Grantee for review and approval a plan and time schedule to diligently complete a cure. Grantor and/or Developer shall complete such cure in accordance with the approved plan. If Grantor or Developer disputes the notice of violation, it shall issue a -9- 300081746.2 written notice of such dispute (hereinafter "Notice of Dispute") to the Grantee within fifteen (15) days of receipt of written notice of violation. (3) If Grantor or Developer fails to cure the noticed violation(s) within the time period(s) described in Section 10(b)(2) above, or Section 10(4) below, Grantee may bring an action at law or in equity in a court of competent jurisdiction to enforce compliance by Grantor or Developer with the terms of this Conservation Easement. In such action, the Grantee may (i) recover any damages to which they may be entitled for violation by Grantor or Developer of the terms of this Conservation Easement, (ii) enjoin the violation, ex parte if necessary, by temporary or permanent injunction without the necessity of proving either actual damages or the inadequacy of otherwise available legal remedies, or (iii) pursue other equitable relief, including, but not limited to, the restoration of the Property to the condition in which it existed prior to any such violation or injury. Grantee may apply any damages recovered to the cost of undertaking any corrective action on the Property. (4) If Grantor or Developer provides Grantee with a notice of dispute, as provided herein, Grantee shall meet and confer with Grantor or Developer at a mutually agreeable place and time, not to exceed thirty (30) days from the date that Grantee receives the notice of dispute. Grantee shall consider all relevant information concerning the disputed violation provided by Grantor or Developer, and shall determine whether a violation has in fact occurred and, if so, whether the notice of violation and demand for cure issued by Grantee is appropriate in light of the violation. (5) If, after reviewing Grantor's or Developer's notice of dispute, conferring with Grantor or Developer, and considering all relevant information related to the violation, Grantee determines that a violation has occurred, Grantee shall give Grantor or Developer notice of such determination in writing. Upon receipt of such determination, Grantor or Developer shall have fifteen (15) days to cure the violation. If said cure reasonably requires more than fifteen (15) days, Grantor or Developer shall, within the fifteen (15) day period, submit to Grantee for review and approval a plan and time schedule to diligently complete a cure. Grantor or Developer shall complete such cure in accordance with the approved plan. (c) Conflicting Notices of Violation. (1) If Grantor or Developer receives a Notice of Violation from Grantee or ACOE that is in material conflict with one or more prior written Notices of Violation that have not yet been cured by Grantor or Developer (hereinafter "Active Notice(s) of Violation") such that the conflict makes it impossible for Grantor or Developer carry out cure consistent with all prior Active Notices of Violation, Grantor or Developer shall give written notice (hereinafter "Notice of Conflict") to the agency or agencies issuing the later, conflicting Notice(s) of Violation. Grantor or Developer shall issue said Notice of Conflict to the appropriate agency or agencies within fifteen (15) days of the receipt of each such conflicting Notice of Violation. A valid Notice of Conflict shall describe the conflict with specificity, including a description of how the conflict makes compliance with all Active Notices of Violation impossible. (2) Upon issuing a valid notice of conflict to the appropriate agency, as described above, Grantor or Developer shall not be required to carry out the cure described in ,Bulls 300081746.2 the conflicting Notice or Notices of Violation until such time as the agency or agencies responsible for said conflicting Notice(s) of Violation issue(s) a revised Notice of Violation that is consistent with prior Active Notices of Violation. Upon receipt of a revised, consistent Notice of Violation, Grantor or Developer shall carry out the cure recommended in such notice within the time period(s) described in Section 10(b)(2), above. Notwithstanding Section 10(d), failure to cure within said time period(s) shall entitle Grantee to the remedies described in Section 10(b)(3). (3) The failure of Grantor or Developer to issue a valid Notice of Conflict within fifteen (15) days of receipt of a conflicting Notice of Violation shall result in a waiver of Grantor's or Developer's ability to claim a conflict. (4) This Section 10(c) shall not apply to Section 10(d), below. (d) Immediate Action. If Grantee determines that circumstances require immediate action to prevent or mitigate significant damage to the Natural Condition or Conservation Values of the Property, Grantee may immediately pursue all available remedies, including injunctive relief, available pursuant to both this Conservation Easement and state and federal law after giving Grantor or Developer at least twenty four (24) hours' written notice before pursuing such remedies. So long as such twenty four (24) hours' notice is given, Grantee may immediately pursue all available remedies without waiting for the expiration of the time periods provided for cure or notice of dispute as described in Section 1.0(b)(2). The written notice pursuant to this paragraph may be transmitted to Grantor or Developer by facsimile. The rights of Grantee under this paragraph apply equally to actual or threatened violations of the terms of this Conservation Easement. Grantor or Developer agrees that the remedies at law for Grantee for any violation of the terms of this Conservation Easement are inadequate and that Grantee shall be entitled to the injunctive relief described in this Section 10, both prohibitive and mandatory, in addition to such other relief to which Grantee may be entitled, including specific performance of the terms of this Conservation Easement, without the necessity of proving either actual damages or the inadequacy of otherwise available legal remedies. The remedies described in this Section 10(c) shall be cumulative and shall be in addition to all remedies now or hereafter existing at law or in equity. (e) Costs of Enforcement. Any costs incurred by Grantee, as the prevailing party, in enforcing the terms of this Conservation Easement against Grantor or Developer including, but not limited to, costs of suit and attorneys' fees, and any costs of restoration necessitated by Grantor's or Developer's violation or negligence under the terms of this Conservation Easement shall be borne by Grantor or Developer, as appropriate. (f) Enforcement Discretion. Enforcement of the terms of this Conservation Easement shall be at the discretion of the Grantee. Any forbearance by Grantee to exercise rights under this Conservation Easement in the event of any breach of any term of this Conservation Easement by Grantor or Developer shall not be deemed or construed to be a waiver by Grantee of such term or of any subsequent breach of the same or any other term of this Conservation Easement or of any of the rights of Grantee a under this Conservation Easement. No delay or omission by Grantee in the exercise of any right or remedy upon any breach by Grantor or Developer shall impair such right or remedy or be construed as a waiver. MBE 300081746.2 (g) Acts Beyond Grantor's Control. Nothing contained in this Conservation Easement shall be construed to entitle Grantee to bring any action against Grantor or any injury to or change in the Property resulting from: (1) Any natural cause beyond Grantor's control, including without limitation, fire not caused by Grantor, flood, storm, and earth movement; or (2) Any prudent action taken by Grantor under emergency conditions to prevent, abate, or mitigate significant injury to persons and/or the Property resulting from such causes; or (3) Acts by Grantee, Developer, and/or ACOE or their employees, directors, officers, agents, contractors, or representatives. Notwithstanding the foregoing, Grantor must obtain any applicable governmental permits and approvals for any emergency activity or use permitted by this Conservation Easement, and undertake any activity or use in accordance with all applicable federal, state, local and administrative agency statutes, ordinances, rules, regulations, orders or requirements. (h) Acts Beyond Developer's Control. Nothing contained in this Conservation Easement shall be construed to entitle Grantee to bring any action against Developer for any injury to or change in the Property resulting from: (1) Any natural cause beyond Developer's control, including without limitation, fire not caused by Developer, flood, storm, and earth movement; (2) Any prudent action taken by Developer under emergency conditions to prevent, abate, or mitigate significant injury to persons and/or the Property resulting from such causes; (3) Acts by Grantor, Grantee, ACOE or their employees, directors, officers, agents, contractors, or representatives; or (4) Acts of third parties (including any governmental agencies) that are beyond Developer's control. Notwithstanding the foregoing, Developer must obtain any applicable governmental permits and approvals for any emergency activity or use permitted by this Conservation Easement, and undertake any activity or use in accordance with all applicable federal, state, local and administrative agency statutes, ordinances, rules, regulations, orders or requirements 11. Vegetation Replacement and Maintenance. Grantor shall not be responsible for any vegetation replacement, maintenance, or the cost thereof, except for vegetation replacement or maintenance required as part of the Long -Term Maintenance of the Property per Section 20. 12. Access. This Conservation Easement does not convey a general right of access to the public or a general right of access to the Property. In accordance with Section 5(d), Grantor, its successors or assigns shall install signage at all likely points of entry informing persons of the nature and restrictions on the Property. This Conservation Easement will allow for -12- 300081746.2 access to the Property by the ACOE, USFWS, CDFG, and third -party easement holders of record at the time of this conveyance at locations designated in easements and reservations of rights recorded in the chain of title to the Property at the time of this conveyance. 13. Costs and Liabilities. (a) General Costs. Grantor, its successors and assigns retain all responsibilities and shall bear all costs and liabilities of any kind related to the ownership, operation, upkeep, and maintenance of the Property except as expressly set forth herein. Notwithstanding anything to the contrary contained herein, it is understood between the parties that the easement rights conveyed herein are expressly subject to all matters of record as of the date hereof and are conveyed in an "as -is" condition, "with all faults" as of such date. No representations or warranties have been, are or will be made and no responsibility has been, is, or will be assumed by Grantor as to the physical, biological, or legal condition of the Property as of the date hereof. (b) Hold Harmless. Grantor, its successors and assigns shall hold harmless, protect and indemnify ACOE and its respective directors, officers, employees, agents, contractors, and representatives and the heirs, personal representatives, successors and assigns of each of them (each an "ACOE Indemnified Party" and collectively, "ACOE Indemnified Parties") from and against any and all liabilities, penalties, costs, losses, damages, expenses (including, without limitation reasonable attorneys' fees and experts' fees), causes of action, claims, demands, orders, liens or judgments (each a "Claim" and, collectively, "Claims"), to the extent arising from or in any way connected with: (i) injury to or the death of any person, or physical damage to any property, resulting from any act, omission, condition, or other matter related to or occurring on or about the Property, regardless of cause and (ii) the existence or administration of this Conservation Easement by Grantor; provided, however, that the indemnification in this Section 13(b) shall be inapplicable to an ACOE Indemnified Party to the extent of any Claim due solely to the negligence of that ACOE Indemnified Party or any of its employees. 14. Taxes. Grantor, its successors and assigns shall pay before delinquency all taxes, assessments, fees, and charges of whatever description levied on or assessed against the Property by competent authority, including any taxes imposed upon, or incurred as a result of, this Conservation Easement, and shall furnish Grantee or the ACOE with satisfactory evidence of payment upon request. 15. Condemnation. The Purpose of the Conservation Easement is presumed to be the best and most necessary public use as defined in Civil Procedure Code Section 1240.680 notwithstanding of Civil Procedure Code Sections 1240.690 and 1240.700. Nevertheless, if the Property is taken, in whole or in part, by exercise of the power of eminent domain, Grantor and Grantee shall be entitled to compensation in accordance with applicable law. 16. Subsequent Transfers. (a) By Grantee. This Conservation Easement is transferable by Grantee, but Grantee may assign its rights and delegate obligations under this Conservation Easement only to an entity or organization authorized to acquire and hold conservation easements pursuant to Civil -13- 300081746.2 Code Section 815.3 and Government Code Section 65965 (or any successor or other provision(s) then applicable) and only with the prior written approval of Grantor and ACOE. Grantee shall record the assignment in the county where the Property is located. (b) By Grantor. (1) The covenants, conditions, and restrictions contained in this Conservation Easement are intended to and shall run with the land and bind all future owners of any interest in the Property. Grantor, its successor or assign agrees to (i) incorporate by reference to the title of and the recording information for this Conservation Easement in any deed or other legal instrument by which each divests itself of any interest in all or a portion of the Property, including, without limitation, a leasehold interest and (ii) give actual notice to any such transferee or lessee of the existence of this Conservation Easement. Grantor, its successor and assign agrees to give written notice to Grantee and ACOE of the intent to transfer any interest at least sixty (60) days prior to the date of such transfer. The failure of Grantor, its successor or assign to perform any act provided in this Section 14 shall not impair the validity of this Conservation Easement or limit its enforceability in any way. (2) Grantor agrees to (i) establish a separate reserve fund to ensure the Grantor's full compliance with the terms of this Conservation Easement and to cover all anticipated maintenance or repair costs as well as extraordinary repair or maintenance; (ii) reevaluate the appropriate, amount of the separate reserve fund described in item (i) above every two years and maintain a minimum balance of $5,000 in the separate reserve fund at all times, such fund to initially be funded by Grantor, and subject to an automatic increase of 2% (two percent) at each two-year interval; unless a smaller increase is approved by the ACOE, at each two-year interval; and (iii) perform an internal review each year of the status of the land governed by this Conservation Easement. (3) From and after the date of any transfer of the Property by Grantor and each transfer thereafter, (i) the transferee shall be deemed to have assumed all of the obligations of Grantor, (ii) the transferee shall be deemed to have accepted the restrictions contained herein, (iii) the transferor, as applicable, shall have no further obligations hereunder except pursuant to Section 25O, and (iv) all references to Grantor in this Conservation Easement shall thereafter be deemed to refer to such transferee. 17. Additional Easements. Grantor shall not grant any additional easements, rights of way or other interests in the surface or subsurface of the Property (other than a security interest that is subordinate to this Conservation Easement), or grant or otherwise abandon or relinquish any water rights relating to the Property, without first obtaining the written consent of Grantee and ACOE. Grantee and/or ACOE may withhold such consent if it determines that the proposed interest or transfer is inconsistent with the Purpose of this Conservation Easement or will impair or interfere with the Conservation Values of the Property. This Section 17 shall not prohibit transfer of a fee or leasehold interest in the Property that is subject to this Conservation Easement and complies with Section 16. Grantor, its successors and assigns shall record any additional easements or other interests in the Property approved by the Grantee and ACOE in the official records of Riverside County, California and provide a copy of the recorded document to Grantee and ACOE. -14- 300081746.2 18. Notices. All notices, demands, requests, consents, approvals, or communications from one party to another shall be personally delivered or sent by facsimile to the persons set forth below or shall be deemed given five (5) days after deposit in the United States mail, certified and postage prepaid, return receipt requested, and addressed as follows, or at such other address as any Party may from time to time specify to the other parties in writing: To Grantor: Stone Eagle Association c/o Albert Management, Inc. 41-865 Boardwalk, Suite 101 Palm Desert, CA 92211 FAX 760-346-9997 To Grantee: City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 FAX: 760-340-0574 To Developer: Stone Eagle, LLC 72450 Stone Eagle Drive Palm Desert, CA 92260 FAX: 760-773-6201 With a copy to: District Counsel U.S. Army Corps of Engineers Los Angeles District 915 Wilshire Boulevard, Room 1535 Los Angeles, CA 90017-3401 FAX: 213-452-4217 The parties agree to accept facsimile signed documents and agree to rely upon such documents as if they bore original signatures. Each party agrees to provide to the other parties, within seventy-two (72) hours after transmission of such a facsimile, the original documents that bear the original signatures. 19. Amendment. Grantor, Grantee, and Developer (while Developer is a party to the Conservation Easement) may amend this Conservation Easement only by mutual written agreement and with the written consent of the ACOE. Any such amendment shall be consistent with the Purpose of this Conservation Easement and shall not affect its perpetual duration. Grantor or its successors and assigns shall record any amendments to this Conservation Easement approved by the Grantee and ACOE in the official records of Riverside County, California and shall provide a copy of the recorded document to the Grantee, Developer and ACOE. 20. Long -Term Maintenance. (a) Grantor shall be responsible for in -perpetuity, ongoing, long-term maintenance and management of the Property. -15- 300081746.2 (b) Such long-term maintenance shall consist of the following activities: (1) annual removal of trash or man-made debris; (2) maintenance, repair or replacement of signage and other notification features installed pursuant to Section 5(d) or Section 8(d), as needed; (3) removing and controlling non-native weeds and exotic vegetation including but not limited to oleanders (Nerium oleander), fountain grass (Pennisteum villosum), and tamarix spp. (c) Restoration Responsibilities. Grantor, Developer, and their successors and assigns shall each individually be obligated to repair, remediate, or restore the Property damaged by any activities prohibited by Section 4 herein for which it is responsible. (d) Annual Reporting. Grantor, its successors and assigns, shall prepare an annual maintenance report documenting activities performed under Section 20(b)(1)-(3) above, and shall make such report available to Grantee and/or ACOE upon request. (e) Grantor Restoration. When activities are performed pursuant to Section 20 c herein that are the obligations and responsibilities of Grantor, Grantor its successors and assigns, shall retain, at Grantor's expense, a Biological Monitor to prepare a Restoration Plan and to oversee/monitor such restoration activities. Grantor shall have its Biological Monitor submit a draft Restoration Plan to Grantee and ACOE for review and written approval prior to its implementation. Upon completion of restoration as specified in the approved Restoration Plan, Grantor shall have a Biological Monitor prepare a detailed monitoring report, and Grantor shall make the report available to Grantee and ACOE within thirty (30) days of completion of restoration activities. Grantor, its successors or assigns and Biological Monitor shall sign the monitoring report, and the report shall document the Biological Monitor's name and affiliation, dates Biological Monitor was present on -site, activities observed and their location, Biological Monitor's observations regarding the adequacy of restoration performance by the Grantor, its successors or assigns, or its contractor in accordance with the approved Restoration Plan, corrections recommended and implemented. (f) Developer Restoration. When activities are performed pursuant to Section 20 c herein that are the obligations and responsibilities of Developer, Developer shall retain, at Developer's expense, a qualified Biological Monitor to prepare a Restoration Plan and to oversee/monitor such restoration activities. Developer shall have its Biological Monitor submit a draft Restoration Plan to Grantee and ACOE for review and for ACOE written approval prior to its implementation. Upon completion of restoration as specified in the approved Restoration Plan, Developer shall have a Biological Monitor prepare a detailed monitoring report, and Developer shall make the report available to Grantee and ACOE within thirty (30) days of completion of restoration activities. Developer and Biological Monitor shall sign the monitoring report, and the report shall document the Biological Monitor's name and affiliation, dates Biological Monitor was present on -site, activities observed and their location, Biological Monitor's observations regarding the adequacy of restoration performance by Developer or its contractor in accordance with the approved Restoration Plan, corrections recommended and implemented. 21. Intentionally Omitted. 22. Recordation. Grantor shall promptly record this instrument in the official records of Riverside County, California and immediately notify Grantee, Developer and the ACOE through the mailing of a conformed copy of the recorded easement. -16- 300081746.2 23. Estoppel Certificate. Upon request, Grantee shall within fifteen (15) days execute and deliver to Grantor, its successors and assigns any document, including an estoppel certificate, which certifies compliance with any obligation of Grantor, its successors and assigns contained in this Conservation Easement and otherwise evidences the status of this Conservation Easement as may be requested by Grantor, its successors and assigns. 24. Extinguishment. If circumstances arise in the future that render the Purpose of this Conservation Easement impossible to accomplish, this Conservation Easement can only be terminated or extinguished, in whole or in part, by judicial proceedings in a court of competent jurisdiction. 25. General Provisions. (a) Controlling Law. The laws of the United States and the State of California, disregarding the conflicts of law principles of such state, shall govern the interpretation and performance of this Conservation Easement. (b) Liberal Construction. Any general rule of construction to the contrary notwithstanding, this Conservation Easement shall be liberally construed in favor of and to effect the purposes of this Conservation Easement and the policy and purpose set forth in California Civil Code Section 815, et seq. If any provision in this instrument is found to be ambiguous, an interpretation consistent with the purposes of this Conservation Easement that would render the provision valid shall be favored over any interpretation that would render it invalid. (c) Severability. If a court of competent jurisdiction voids or invalidates on its face any provision of this Conservation Easement, such action shall not affect the remainder of this Conservation Easement. If a court of competent jurisdiction voids or invalidates the application of any provision of this Conservation Easement to a person or circumstance, such action shall not affect the application of the provision to other persons or circumstances. (d) Entire Agreement. This instrument together with the attached exhibits and any documents referred to herein sets forth the entire agreement of the parties with respect to the Conservation Easement and supersedes all prior discussions, negotiations, understandings, or agreements relating to the Conservation Easement. No alteration or variation of this instrument shall be valid or binding unless contained in an amendment in accordance with Section 19. (e) No Forfeiture. Nothing contained herein will result in a forfeiture or reversion of Grantor's title in any respect. (f) Successors and Assigns. The covenants, terms, conditions, and restrictions of this Conservation Easement shall be binding upon, and inure to the benefit of, the parties hereto and their respective personal representatives, heirs, successors, and assigns and shall constitute a servitude running in perpetuity with the Property. The covenants hereunder benefiting Grantee shall also benefit the ACOE as a third party beneficiary. (g) Termination of Rights and Obligations. Except as otherwise expressly set forth in this Conservation Easement, a party's rights and obligations under this Conservation Easement shall terminate upon transfer of the party's interest in the Conservation Easement or -17- 300081746.2 Property (respectively), except that liability for acts or omissions occurring prior to transfer shall survive transfer. (h) Captions. The captions in this instrument have been inserted solely for convenience of reference and are not a part of this instrument and shall have no effect upon its construction or interpretation. (i) Counterparts. The parties may execute this instrument in two or more counterparts, which shall, in the aggregate, be signed by all parties; each counterpart shall be deemed an original instrument as against any party who has signed it. In the event of any disparity between the counterparts produced, the recorded counterpart shall be controlling. 0) Exhibits. All Exhibits referred to in this Conservation Easement are attached and incorporated herein by reference. (k) Subordination. No breach, enforcement or attempted enforcement of any of the terms, covenants, conditions or restrictions of this Conservation Easement will defeat or render invalid the lien of any mortgage or deed of trust securing a loan made in good faith and for value with respect to the Property; provided, however, that all provisions of this Conservation Easement will be binding upon and effective against any subsequent owner of the Property whose title to the Property or any portion of such is acquired by foreclosure, trust deed sale, or otherwise. Grantor hereby represents to Grantee that, as of the date of this Conservation Easement, the Property is not encumbered with any mortgage, deed of trust or other monetary encumbrance, except for liens for non -delinquent real property taxes and assessments, and that the Property is not subject to any other conservation easement. (1) No Hazardous Materials Liability. Grantor represents and warrants that to Grantor's actual knowledge there has been no release or threatened release of Hazardous Materials (defined below) or underground storage tanks existing, generated, treated, stored, used, released, disposed of, deposited or abandoned in, on, under, or from the Property in violation of applicable Environmental Laws (as defined herein below), or transported to or from or affecting the Property in violation of applicable Environmental Laws. Without limiting the obligations of Grantor under Section 13(b) herein, Grantor hereby releases and agrees to indemnify, protect and hold harmless the ACOE Indemnified Parties (defined in Section 13(b)) against any and all Claims (defined in Section 13(b)) to the extent arising from or connected with any Hazardous Materials used, released, disposed of, deposited or abandoned in, on, under, or from the Property in violation of applicable Environmental Laws or transported to or from or affecting the Property in violation of applicable Environmental Laws from and after the date of this Conservation Easement, except that this release and indemnification shall be inapplicable to the ACOE Indemnified Parties with respect to any Hazardous Materials placed, disposed or released by an ACOE Indemnified Party or to the extent of any Claim due to the negligence of that ACOE Indemnified Party or any of its employees or agents. This release and indemnification includes, without limitation, Claims for (i) injury to or death of any person or physical damage to any property; and (ii) Grantor's violation or alleged violation of, or other failure to comply with, any Environmental Laws. If any action or proceeding is brought against any of the ACOE Indemnified Parties by reason of any such Claim, Grantor shall, at the election of and upon written notice from the applicable ACOE Indemnified Party, defend such action or proceeding by counsel reasonably acceptable to the applicable ACOE Indemnified Party or Parties or -18- 300081746.2 reimburse the applicable ACOE Indemnified Party or Parties for all charges incurred for the services of the United States Attorney General in defending the action or proceeding. Despite any contrary provision of this Conservation Easement, the parties do not intend this Conservation Easement to be, and this Conservation Easement shall not be, construed such that it creates in or gives to Grantee or ACOE any of the following: (1) The obligations or liabilities of an "owner" or "operator," as those terms are defined and used in Environmental Laws (defined below), including, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (42 U.S.C. Section 9601 et seq.; hereinafter, "CERCLA"); or (2) The obligations or liabilities of a person described in 42 U.S.C. Section 9607(a)(3) or (4); or (3) The obligations of a responsible person under any applicable Environmental Laws; or (4) The right to investigate and remediate any Hazardous Materials associated with the Property; or (5) Any control over Grantor's ability to investigate, remove, remediate or otherwise clean up any Hazardous Materials associated with the Property. The term "Hazardous Materials" includes, without limitation, (a) material that is flammable, explosive or radioactive; (b) petroleum products, including by-products and fractions thereof; and (c) hazardous materials, hazardous wastes, hazardous or toxic substances, or related materials defined in CERCLA; Resource Conservation and Recovery Act (42 U.S.C. 6901 et seq.); the Hazardous Materials Transportation Act (49 U.S.C. Section 5101 et seq.); the Hazardous Waste Control Law (California Health & Safety Code Section 25100 et seq.); the Hazardous Substance Account Act (California Health & Safety Code Section 25300 et seq.), and in the regulations adopted and publications promulgated pursuant to them, or any other applicable federal, state or local laws, ordinances, rules, regulations or orders now in effect or enacted after the date of this Conservation Easement. The term "Environmental Laws" includes, without limitation, any federal, state, local or administrative agency statute, ordinance, rule, regulation, order or requirement relating to pollution, protection of human health or safety, the environment or Hazardous Materials. Grantor represents, warrants and covenants to Grantee and ACOE that Grantor's activities upon and use of the Property will comply with all Environmental Laws. (m) Miscellaneous. In the event of any conflict between the terms of this Conservation Easement and the terms of the Covenant Codes & Restrictions for the Project and any amendments thereto recorded prior to date this Conservation Easement is executed, the terms of this Conservation Easement shall control. [REMAINDER LEFT INTENTIONALLY BLANK] -19- 300081746.2 IN WITNESS WHEREOF Grantor, Developer and Grantee have executed this Conservation Easement the day and year first above written and have agreed to be bound by the terms and provisions hereof. GRANTOR: STONE EAGLE ASSOCIATION, a California non-profit mutual benefit corporation By: Name: Title: By: Name: Title: DEVELOPER: STONE EAGLE, LLC, a California limited liability company By: Name: Title: Approved as to form: CITY OF PALM DESERT, a California municipal corporation By: _ Name: Title: -20- 300081746.2 CERTIFICATE OF ACCEPTANCE This is to certify that the interest in real property conveyed by the Conservation Easement by Stone Eagle Association dated _, 2012, to the City of Palm Desert, a California municipal corporation, is accepted by the undersigned officers on behalf of Grantee. GRANTEE: CITY OF PALM DESERT, a California municipal corporation By: _ Name: Title: Date: Attest: By: _ Name: Title: Date: IWQE 300081746.2 State of California County of On Date personally appeared } before me, Here Insert Name and Title of the Officer Place Notary Seal Above State of California } County of } On Date personally appeared Name(s) of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. 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. Signature Signature of Notary Public before me, Here Insert Name and Title of the Officer Place Notary Seat Above Name(s) of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. 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. Signature Signature of Notary Public 300081746.2 State of California } County of } On before me, Date personally appeared Place Notary Seal Above State of California } County of } On Date personally appeared Here Insert Name and Title of the Officer Name(s) of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. 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. Signature Signature of Notary Public before me, Here Insert Name and Title of the Officer Place Notary Seal Above Name(s) of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. 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. Signature Signature of Notary Public 300081746.2 State of California } County of } On Date personally appeared before me, Here Insert Name and Title of the Officer Place Notary Seal Above State of California } County of } On Date personally appeared before me, Place Notary Seal Above Name(s) of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. 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. Signature Signature of Notary Public Here Insert Name and Title of the Officer Name(s) of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. 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. Signature Signature of Notary Public 300081746.2 State of California } County of } On Date personally appeared before me, Here Insert Name and Title of the Officer Name(s) of Signer(s) who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. 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. Signature Place Notary Seal Above Signature of Notary Public 300081746.2 Exhibit A Legal Description of Property 300081746.2 i EXHIBIT "A" LEGAL DESCRIPTION PARCEL "P": BEING AN EASEMENT OVER AND ACROSS THAT PORTION OF LOT "H" OF TRACT MAP NO. 30438-2 ON FILE IN BOOK 396 OF MAPS, PAGES 82 THROUGH 89, INCLUSIVE, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA, SECTION 31, TOWNSHIP 5 SOUTH, RANGE 6 EAST, SAN BERNARDINO BASE AND MERIDIAN, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: COMMENCING AT THE SOUTHWEST CORNER OF SAID LOT "H'; THENCE NORTH 44039'04' EAST 10.33 FEET TO THE POINT OF BEGINNING; THENCE NORTH 00038'07" EAST 365.47 FEET; THENCE SOUTH 86049'19" EAST 69.48 FEET; THENCE SOUTH 57032'32" EAST 75.36 FEET; THENCE SOUTH 46045'02" EAST 89.95 FEET; THENCE SOUTH 80016'38" EAST 136.85 FEET; THENCE NORTH 8393947" EAST 52.35 FEET; THENCE SOUTH 77"12'37" EAST 67.11 FEET; THENCE SOUTH 0005V37" WEST230.76 FEET; THENCE NORTH 89"34'04" WEST 450.96 FEET TO THE POINT OF BEGINNING. SAID ABOVE DESCRIBED PARCEL "P" CONTAINING 2.93 ACRES MORE OR LESS AND AS SHOWN ON ATTACHED EXHIBIT" 5", BY THIS REFERENCE BEING MADE A PART HEREOF. PARCEL BEING AN EASEMENT OVER AND ACROSS THAT PORTION OF LOT "B" OF TRACT MAP NO. ' 30438 ON FILE IN BOOK 396 OF MAPS, PAGES 93 THROUGH 95, INCLUSIVE, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA, SECTION 31, TOWNSHIP 5 SOUTH, RANGE 6 EAST, SAN BERNARDINO BASE AND MERIDIAN, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: i COMMENCING AT THE SOUTHWEST CORNER OF SAID LOT "B' ; THENCE NORTH 17020'49" EAST 25.61 FEET TO THE POINT OF BEGINNING; THENCE NORTH 0001CO' EAST 377.36 FEET; t THENCE NORTH 51 °46'50" EAST 32.90 FEET; THENCE NORTH 02039'52" EAST 33.70 FEET; THENCE NORTH 84008'49" EAST 30.71 FEET; c-Wocumnrr and Sc dngslodorJWakopL-done Fo,#678600�CONSERYAWIV EASSHM710TX REVISED 12.2246.doex Pagel of 3 EXHIBIT "A" LEGAL DESCRIPTION THENCE SOUTH 02°26'00" WEST 202.95 FEET; THENCE SOUTH IS°2T46" EAST 67.43 FEET; THENCE SOUTH 10014'10" EAST 16852 FEET; THENCE SOUTH 89028'01" WEST 98.88 FEET TO THE POINT OF BEGINNING. SAID ABOVE DESCRIBED PARCEL." Q" CONTAINING 0.63 ACRES MORE OR LESS AND AS SHOWN ON ATTACHED EXHIBIT "$ ", BY THIS REFERENCE BEING MADE A PART HEREOF. PARCEL "R": BEING AN EASEMENT OVER AND ACROSS THAT PORTION OF LOT "H" OF TRACT MAP NO. 30438-2 ON FILE IN BOOK 396 OF MAPS, PAGES 82 THROUGH 89, INCLUSIVE, RECORDS OF RIVERSIDE COUNTY, CALIFORNIA, SECTION 31, TOWNSHIP 5 SOUTH, RANGE 6 EAST, SAN BERNARDINO BASE AND MERIDIAN, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS; COMMENCING AT THE SOUTHWEST CORNER OF SAID LOT "H"; THENCE NORTH 01051'23" EAST 383.90 FEET TO THE POINT OF BEGINNING; THENCE NORTH 0593'25" WEST 56.46 FEET; THENCE NORTH 66020'25" EAST 49.71 FEET; THENCE NORTH 88*41'55" EAST 53.80 FEET; THENCE SOUTH 67947V7" EAST 61.40 FEET; THENCE SOUTH 46-51'44" EAST 40.20 FEET; THENCE SOUTH 3904348" EAST 41.68 FEET; THENCE SOUTH 3801018" EAST 28:04 FEET; THENCE SOUTH 84°20'51" EAST 101.99 FEET; THENCE NORTH 82052'43" EAST 39.42 FEET; THENCE NORTH 4001874" EAST 36.85 FEET; THENCE NORTH 5203933" EAST 56.87 FEET; THENCE NORTH 729'5344" EAST 121.26 FEET; THENCE. SOUTH 29*51'53" EAST 52.66 FEET; THENCE SOUTH 83011'32" WEST 77.17 FEET; C.Woeumcaa arcd ScaingsWdotpDoktopfSlone f4gfe17,?OR CONSERYA770N EASE.{fEM'I.OT 11 RFY/Sf. D 12-22.10.d=T Pap of EXHIBIT "A" LEGAL DESCRIPTION THENCE SOUTH 74047-42" WEST 10290 FELL; THENCE SOUTH 33019'27" WI?S'r 36.47 FEET: THENCE: SOUTH 01030'30" FIAST 66, 19 FEET; TIIENCF, SOUrl-I 71034'21" wE-s'r 18.41 FEET; THENCE NORTH 89*06'19" WEST 39.12 FEET; THENCE NORT1-i 81009'46" WEST 83.30 FEET: THENCE NORTH 61°31'00" WEST 48.67 FEET; THENCE NORTH 4202626" WEST 77.09 FEET; THENCE NORTH 65026'38" WEST 94.07 FEET; THENCE SOUTH 80°09'30" WEST 42.84 FE.CT-TO'n.m,'; POINT OF BEGENNI.NC, SAID ABOVE DESCRIBED PARCEL "R" CONTAINING 093 ACRES MORE OR LESS AND AS SHOWN ON ATTACHED EXHIBIT "$", BY THIS REFERENCE BEING MADE A PART HEREOF. Prp��red under the supervision o1: 40�NOSL�` ELA VAtg"(V—;laE. or P.L.S. #SO10 Illyy �2fir+�C3 Lxpires 12,31110 I STANITC CONSULTING q�F 8010 73.733.Fred Waring Dr., Suite 100 Palm Desert, CA 92260 �• (760)3,16.9844 C iUv�rnnrnrs a�xl Sertings�rrlorfilJssknrp�sure h�4(e 1Sbr>n_CD,VSBRi ITION I.iSF.AlE:Y7'!,t)7' I( REVISED I:-213.10 dlva NEC 3 of .1 Exhibit B Map of Property 300081746.2 r LL w GiJ� vQ� o \ ` Vsi o 0 W m � W � t } J/aaJV YAgCF ' N I YLL/Y-JUlJ 70 J/aaJV YAgCF ' N I YLL/Y-JUlJ 70 Exhibit C Mitigation Plan 300081746.2 T.Q.S. ARMY CORPS OF ENGINEERS SECTION .404(b)(1) HABITAT MITIGATION AND MONITORING PLAN CREST/STONE EAGLE GOLF COURSE AND RESIDENTIAL PROJECT February 25, 2004 PREPARED EOR: US ARMY CORD'S OF ENGINEERS 915 WILSHIRE BOULEVARD SUM 1410 LOS ANGELE:i, CA 90017 PREPARED BY: TERRA NOVA PLANNING & RESEARCH INC.® 400 SOUTH FARRELL DRIVE SUITE B-205 PALM SPRINGS, CA 92262 TWOty of Palm Doren 6,WStonc Eag3aSredon 404(b)(1) HIVl i? F&=ffy 25, 2004 TABLE OF CONTENTS Page No. A. DESCRIPTION OF THE PROACT/IMPACT SITE 3 1. Responsible Patties 2. Crest/Stone Eagle Project Location 3. Brief Summary of Crest/Stone Eagle Project 4. Jurisdictional Areas to Be Filled by Habitat Type 5. Type(s),lunctions, and Values of the Jurisdictional Areas to be Directly and indirectly impacted 6. Assurances of Revegetation Success B. GOALS OF TBE COMPENSATORY MITIGATION PROJAC)r 12 1. Type(s) and Area(s) of Habitat to be Established, Restored, Enhanced and/or Preserved 2. Specific Punctions•and Values of Habitat Type(s) to be Established, Restored, Enhanced andlor Preserved 3, Time Lapse Between Jurisdictional Impacts and Expected Compensatory Mitigation Success 4, Estimated Total Cost (including all compensatory mitigation site preparation, planting, maintenance, and monitoring 5. Special Aquatic Habitats, Other Waters of the U.S., and Non -Jurisdictional Areas Proposed'as Compensatory Mitigation C. DF,SCRU TION OF THE PROPOSED COMPENSATORY MITIGATION SITE 17 I. Location and Size of Compensatory Mitigation Site 2. Ownership Status 3. Existing Functions and Values of the Compensatory Mitigation Site 4. Jurisdictional Delineation 5. Present and Proposed uses of the Compensatory Mitigation site and All Adjacent Areas 6, Referenced Site D. MAINTENANCE ACITIVITEES DURING THE MONITORING PERIOD 21 ' 1. Maintenance Activities 2. Responsible Parties 3. Schedule E. MONITORING PLAN FOR THE COMPENSATORY MITIGATION SITE 23 1. Performance Standards for Target'Dates and Success Criteria 2. Target Functions and Values TNIaq 6f Palm DcsW Q-t4t(Stono Eaglo S oa 404(b)(1)11WM February 25, 2004 3. Target Hydrological Regime 4. Target Jurisdictional and Non -Jurisdictional Acreages W be Established, -Restored, Enhanced, andlor Preserved 5. Monitoring Methods . 6. •Monitoring Schedule 7. Annual Monitor ng.Repprts F. , COMPLETION OF•COMPENSATORY MITIGATION 28 1. Notification of Completion 2. Agency Confirmation G. ' CONTINGENCY MEASURES 29 1. Wtiating Procedures 2. Alternative Locations for Contingency Compensatory Mitigation 3, Funding Mechanism 4, Responsible Parties APPENDIX A: EX)EiIMITS A. Regional Map •B. vicinity Map C. - Aerial Vtevv of Planning Area D1. Proposed Irnpacts&ower Bruce & Ramon Creek D2. Proposed Impacts/CJpper Bruce Creek El. Permanent Impacts to Desert Dry Wash WoodlanNLower Bruce & Ramon Greek E2. Pemtancnt Impacts to Desert Dry Wash Woodland/Upper Bruce Creek Fl. On -Site Deseri Dry Wash Woodland Midgation/Lower Bruce & Ramon Creek P2. On -Site Desert Dry Wash Woodland Ntigation/Upper Bruce & Ramon Creek F3. Off -Site Desert Dry Wash Woodland Mitigation Area 01, Residential Landscape Zones . G2. Golf Course Landscape Zones G3. Typical Landscaping— Base Reveg Zone G4. Typical Landscaping — Enhanced Reveg Zone G5. Typical Landscaping — Arroyo Zone G6. Typical Landscaping— Oasis Zone 07. Typical Landscaping— Goff Holes Zone Hi. Off -Site Mitigation (Doorley Property) H2. Off -Site Mitigation (Haystack Property) M. Off -Site Mitigation (Haystack/Amlanco Property) H4, Off -Site Mitigation (Dick Property) Hl. Off -Site Mitigation (Egan Property) APPENDIX B: PROPOSED PLANT PALETTE 2 TN/City of Palm Desert Crest/Stone Eagle -Section 404(b)(1) HbW Rebrauy 25, M A. ' DESCRIPTION OF TTIM PROJEC rAWA.CT SITE 1. k&To€tsible Parties Ted Lennon President, Stone Eagle LLC Sr. V.P., Destination Development Corporation 74-001 Reserve Drive • Indian Wells, CA 92210 (760) 779-1646 2. Crest/Stone Eagle Project Location The Crest(Stone Eagle project site is comprised of two planning areas, totalling approximately 703± acres, referred to herein as Planning Areas "A" and "B". Planning Area A is the easternmost portion of the pmject site and extends west from State Highway 74, across the Coachella Valley Water District's Palm Valley $tormwater Channel, and continues westward into the low-lying foothills of the Santa Rosa Mountains (see Exhibits A, B and C of Appendix A). Access to the site will be from Highway 74 and a bridge that will.cross the stormwater channel and will require an encroachment perm t from CalThws and the Coachella Valley Water District. Planning Area A encompasses 63± acres and is planned for a maximum of sixty (60) dwelling units, with current City approvals for 44 single family homes and approved 'Development Agreement to allow pp to the aforementioned 60 units. The golf clubhouse and golf maintenance buildings and facilities are also planned for development in Planning Area A. Planning Area A can also be described as a portion of Section 31, Township 5 South, Range 6 East, San Bernardino Baseline and Meridian. Planning Area B is located directly northwest of Planning Area A in the City's Sphere of Influence, includes all of Section 25 and encompasses approximately 640 acres, of which approximately 250± acres are proposed for development as an 18-hole championship golf course, practice hole and driving range, with comfort stations and an equipment storage facility. Access to the golf course will be through Planning Area A and an easement on an adjoining lot, Planning Area B can also be described as Section 25, Township 5 South, Range 5. East, San Bernardino Baseline and Meddian. Access is provided to Section 25 by an easement through and adjoining five -acre parcel located in the northwest one-quartcr of Section 36, Township 5 South, Range 5 East - Latitude anal Lonidtude: Planning Area A: Latitude 33' 37' 28", Longitude 1160 24' Planning Area B: Latitude 33° 37' 30", Longitude 1160 25' 3 TNICity of Palm Desert CrestlStonc Fi&-Section 404(b)(1) H&W February 25, 2004 3. Summary of Overall Project Residential Component The residential component of this project consists of a maximum bf 60 attached and/or detached dwelling$ units -located in Planning Area A (see description of planning areas in A_l, above), the easternmost portion of the project development. Dwellings are largely single story, -although some units could be two storks. A11 residences are planned in a village atmosphere with a careful integration of native desert enyironment ,and water features. The development plan will encourage the use of consolidated- on -site parldug and electric vehicles within the project. The residential portion of the project also incorporates community swimming, pools and associated amenities. Recreational Component In the Preferred- project, the principle recreational component of this project, located primarily in 'Planning Area .l3 (Section 25), includes an 18-hole championship golf course and associated starter facilities, open-air pavilion, equipment storage, and comfort stations. Clubhouse and golf course maintenance facilities are to be located in Planning Area A. An undisturbed open space area of .approximately 390t acres adjoins the golf course on the east, west and north, and is planned to remain as open space. The activity involves modifications to drainages and desert dry wash areas. determined to be jurisdictional waters of the United States. The purpose of these modifications is to protect building sites from flooding and sediment deposition during large flood events. The project proposes minor modification of upstream drainages within Bruce and Ramon Creeks in Section 25, Township 5 South, Range 5 East, San Bernardino Baseline and Median. The project also includes -the construction of a system of water and sediment control on the lower portions of Bruce and Ramon Creeks in Section 31, Township 5 South, Range 6 East, San Bernardino Baseline and Meridian. Project Timeline ' • Project start date (golf course): Spring/Early Summer 2004 • Golf course completion: Fall 2005 • Golf.Clubhouse completion: Pall 2007 • Residential component start date: FaIl 2005 • Project buildout (residential component): Expected to be complete by Fall 2008 4. jurisdictional Areas to be lolled by Habitat Type Jurisdictional Waters within the Crest/Stone Eagle Project Area Impacted By Project Development The following three tables summarize permanent and temporary project impacts to Ramon Creek and Bruce Creek Washes' within the CrestlStone Eagle project area. Impacts requiring mitigation are shown on Exhibits DI and D2 of Appendix A attached at the end of this document. 'These areas have been calculated through consultation with the U.S. Army Corps of Engineers, the U.S. Fish and Wildlife Service and the California Departtnent of Fish & Game. Calculated impact areas have been provided to these agencies and mitigation has been offend to off -set impacts. A 4 nV bty of Palm Desert CrestJStone Eagle -Section 404(b)(1) ISM February 25, 2004 complete list of mitigation measures is included in the 404(b)(1) Evaluation Public'Interest Review. Table 1 Proiect impacts to Ramon Creek Wash Areal Area Volume of FiU Type of Fill' Type Of Land (Acres) (Cubic Yards) Impact , _ 3. Flow Control Weir . 0.01 16 Rock, Concrete Permanent 5_ Golf Maintenance .2 00 32,267 Soil, Rock, Concrete Permanent Building/Yard 6. Road & Entry 0.70 27,427 Soil, Rock, Concrete Permanent 6A. Ramon Tributaries 0.50. 126 Soil, Rock, Concrete Permanent Total Permanent 3.21 • Im_pacts — --- 1.Offsite Arroyo 0.45 0 N.A. Temporary Z Arroyo 5'6 0.45 0 NA: Temporary 4 Arroyo 5'6 1.10 0 N.A. Tetnporary4 Total Temporary 2.00 !!!pads TOTAL Sal 60,435 '••Area Identification Numbers correspond to krcations on Exhibits D1 and D2 of Appendix A. 2 Standard Wading equipment appropriate for the work planned will be used wittun the Wash for excavation and placement of fill. a' Miner temporary disturbance to offsite areas is anticipated 4'Terrgwrary impact areas will be restored to native vegetation, x Arroyo wig be graded to provide sediment storage, then replanted with native vegetation. c Includes bank stabilization to be designed. Includes various tributaries of the Ramon Creek drainage as determined by the Corps (not illustrated). Source pacific Advanced Civil Engineering, Inc. (PACE) prepared for Lowe Reserve Corporation, May 6, 2002. Rev- 614/02, 6I19/02. 5 71-Wity ofPalm Doseil ' CrestlSmM Eagfo, Winn 404(b)(1)iEv11VIP February 25, 2004 . Table 2 Proieet Impacts to Bruce Creek Wash "+ T_ Volume of Axes bill (Cubic Type of . Area' (Acres) Yards,) Type of Fi112 Land Impact 7, Swiuuning fool 0.05 161 Soil, Rock, Concrete Permanent 9. Footpaths 0.02 65 Rock, Concrete Permanent 11. Water Panne" 0.51. 1,210 Rock, Concrete Permanent 12, Lake 1.29 3,227 Soil, Concrete Permanent Aggregate, Concrete, 13. Rod 0.05 126 Soil Petmartent 15. Residential Development 4.72 56,467 Soil Petnn3nent 16. Sediment Basin (GC)" 1.15 0 N.A.' Pern MMI:4 17..Sediment Basin Levee 0.88 14,520 Soil, Concrete Permanent I8 Golf Cotlrse(tributaries)" 0.50 1,200 Soil Permanent Total Permanent Impacts 9.17 8. Armyo 3 0.74 0 N.A. Temtporarya 10. Arroyo 0.52 0 N.A. Temporary 14 Arroyo" 0.19 0 N.A. Temparary4 Total Temporary Impacts L45 TOTAL 10.62 77,575 t Area Identification Nurnberg correspond to locations on Exhibits DI and D2 of Appendix A 2 Standard grading equipment appropriate for the work planned will be used within the wash• for excavation and placement of fill. 3 This portion of the Arroyo will be graded to provide sediment retention during minor storms, 4 Impact areas will be regraded and planted with native vegetation.. 3 Path made of rock and concrete. Also provides flow control during storms. °' Includes S80' of grouted rock (or equivalent) bank stabilization. T Water feature will include concrete (or equivalent) lining on the bottom and the banks, and will incorporate ruinped ornamental water and landscaping. Feature will convey floods. Lake bottom will be lined with a synthetic membrane liner under 12" of soil sediment to permit heavy equipment access for sediment removal following major storms. Lake serves as flood conveyance and ceunent retention basin during major floods. 9 Road crossing will consist of a 24' wide road over three Varched culverts (or egtivalent) with concrete botton►s and gravel fil I between culverts. is Area will serve as staging area for sediment removal from the lake following major storms. Native vegetation will be restored following diAtvbanm tl Sediment basin will retain sediment during maiorstorms. Basin will be planmA with native vegetation. Source. Pacific Advanced Civil Engineering, Iroc. (PACE) prepared for Lowe Reserve Corporation, May 6, 2002. Rev. 614102, 6/19102. N& IVr Ity of Palm Desert C mUStona E4e-Swdbu 404(b)(1) iIt W Ferry u, 2004 Table 3 Su imary of Permanent and Temporary impacts Ramon and Bruce Creek Wash Total Permanent Impacts (acres) Ramon Creek 3.21 Bruce Creek 9.17 Total Permanent ImEacts W8 Total Temporary Impacts (acres) Ramon Creek 2.00 Bruce Creek 1.45 Total Temporary Lnpacts 3.45 TOTAL IMPACTS 15.83 5. Type, Functions and Values of the jurisdictional Areas Directly and Indirectly Impacted Tables-4 through b in Section B.1, below, list on and off -site mitigation lands, mitigation ratios, and acreage for each habitat type to be impacted. Functions, values, and baseline information for the impacted areas are discussed below with regard to water quality, habitat, hydrology, -and soils, as suggested in the US Army Corps of Engineers HMMP Guides c&. These impacts have been thoroughly analyzed, in accordance with the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 2I000-21177) and CEQA Guidelines of 1998 (California Code of Regulations Section 15000 et seq.), as amended, in the Crest/Stone Eagle Subsequent Environmental Impact Report (SIIIt) (SCH 199102034). The Crest/Stone Eagle Final SEIR was certified by'the City of Palm Desert on October 24, 2002, and is hereby incorporated by reference into this document. WategQuality - Soils present in the lower portions of Bruce Creek and Ramon Creek ate primarily Riverwash and Carsitas type soils; characterized by stony, cobbey, and gravelly coarse sand with minor amounts of fine material, or by the presence of cobbles and sand on the surface as well as within the soil profile. Based on these soil types, suspended particulates, with the exception of very fine material, will Iargely fall out prior to reaching the concrete -lined Palm Valley Stormwater Channel, into which stormwater runoff will discharge. From there stormwater will flow into the soft -bottomed Whitewater River where there will be further opportunity for stormwater to precipitate out. Therefore, stormwater runoff from the project is expected to generate very little or no suspended particulates, and no turbidity, for either the Crest/Stone Eagle preferred project or either of the project alternatives. A 401 Water Quality Standards Certification (dated December 18, 2003) has been issued for this project by the Colorado River Basin Regional Water Quality Control Board, The 401 - certification includes a Best Management Practices&tegmted Pest Management flan TN/City of Palm Desert . Crmt/Stone &Oe-Section 4040)(1) BbOe February 25, 2004 (BMPIZIP), which effectively eliminates the'discharge of fertilizers, herbicides and pesticides into surface waters and ground water. The stormwater nianagement system designed for the Crest/Stone, Eagle project will conform to National Pollutant Discharge Elimination System (NPDES) standards. The 401 Water Quality Standards. Permit -Application, -including the BMPANT, and certification, has been provided to the Corps. Portions of the subject property' are located *within the foothills of the Santa Rosa Mountains, which serve as an effective groundwater barrier. Therefore, the Whitewater River subbasin does not directly underlie the upper elevations of the subject property. The subject= property is, however, immediately w4acent.to the southerly limits of the Whitewater River subbasin. Within the CrestlStone Eagle project, on -site stormwater detention facilities will provide an opportunity for percolation and passage of irrigation through underlying soil and rock, also providing further filtration and bio-remediation.'There is expected to be very limited incidental runoff from any kind of irrigation. The project incorporates a limited irrigation area, using about 66 percent of the turf area that is typical of golf course development_ In addition, design of the stormwater system will enhance the detention and percolation of stormwater runoff before it reaches the concrete lined Palm Valley Stormwater Channel. Any stormwater runoff that does reach the channel will then discharge into the soft -bottomed Whitewater River, which will provide additional opportunities for percolation Bruce Creek and Ramon Creek are dry ephemeral washes. Water is'prdent in these washes only during storm events in the upper watershed generating sufficiently intense rainfall to exceed rates of percolation within the watershed Based on field surveys -it appears that -it has been several years sines storm -flows have occurred in this area. Thera are no jurisdictional wetlands present on the development portion of the Crest/Stone Eagle project site. As previously noted, in order to protect building sites from the hooding and sediment deposition during large flood events it will be necessary to construct a system of water and sediment control features on Bruce Creek and Ramon Creek. Ramon Creek has a watershed of approximately 0.56 square miles, and Bruce Creek has a watershed of approximately 1.15 square miles. Each creek runs through incised channels and canyons that end near the lower edge of. the project site, adjacent to the Palm Valley Stormwater Channel. The project site and the two watersheds that drain through the site are currently undeveloped, but have been somewhat impacted by, off -highway vehicle use and dumping. The proposed Crest/Stone Eagle project improvements will impact a limited portion of the site, and are not expected to have a significant impact on stormwater peak flow rate, stormwater volume, or debris yield from large events like the 100-year and standard project floods. r 'Sngineer's Report on water Supply and Replenishment Assessment 2001/2=' prepared by water Resources Branch, Engineering Departmenu Coacbeila Valley Water District, April2001. • � � • :. .. � � � . ` . _, • ; .... .. :.:..' . • � � � .f Pal D' .. T[�JGty o M crest CmstfStone Eagle -Section 404(bXl) HMW Febnu 25, M The eastern portion of the project site is adjacent to the Pali Valley Stormwater Channel� owned by the Coachella Valley Water District (CVWD), which serves as the downstream drain for all surface runoff that leaves the site. This drainage is a sloping concrete channel with hard bottom, and CVWD regulations limit the discharge of stormwater and sediment to the channel. Under current conditions, runoff and sediment from the project site and tributary watersheds enters the Pahri Valley Channel via concrete side inlet weirs. Each of the two project watersheds has a weir to* allow inflow to the channel. These weirs will continue to be used after development of the Crest/Stone Eagle piojecL It is anticipated that the peak stomwater discharge rate from each of the two watersheds will be equal to or I= than the peak flow rate with existing conditions, and discharge over each weir will be limited to a rate acceptable to CVWD. CVWD -allows a :discharge rate into the Palm Valley Channel not to exceed 5 efs per linear foot of weir, and prefers that discharge be, limited to 2 cfs per foot of weir. The Crest/Stone Eagle project incorporates. stormwater detention and desalting facilities that will reduce impacts on the CVWD channel. Hlihitat There is no standing water or jurisdictional wetlands on the development portions of -the Crest/Stone Eagle project site, nor is there habitat capable of supporting fish or other aquatic organisms. Bruce Creek and Ramon Creek are ephemeral, dry desert streams. A biological survey was copducted by AMEC Earth and Environmental (AMEC) biologists on the Crest/Stone Eagle development site in the Nall of 2001 and in Matt h and April of 2002? The survey included a Iiterature review and field assessment, including a detailed site survey for Desert Tortoise (Gopherus• agassixr). A complete copy .of the study has been hi luded with the Department of the Army permit_ application previously filed with the CORPS, and is also included in the appendices of the Crest/Stone Eagle SERR also previously provided the CORPS. The survey includes a complete species list. Peninsular*ghom Sheep Most of the subject property is located within "Critical Habitat" for Peninsular Bighorn Sheep (PBS), as designated by the U.S. Fish and Wildlife Service, with the exception of that portion of the site located east of the -Palm Valley Stormwater Channel. This species is Federally listed as Endangered, and State listed as Threatened. Telemetry data collected on the Northern Santa Rosa herd since the early 1980s shows occasiortal sheep observations in the northwest. portion of Section 25 but outside the area proposed for golf development. Although bighorn sheep have been mown to utilize portions of the site for foraging, it is not considered a heavy use area. Nonetheless, golf course development in Section 25 will have an iricremtdntal, limited impact on regional habitat for bighorn sheep. Off -site compensatory mitigation Iands have been approved by the California Department bf Fish and Game (CDFG) and the U.S. Fish and Wildlife Service (USFWS). As noted above, the golf course plan avoids impacts to the two seeps located in Section 25, with both seeps to be located outside the fenced wa. These seeps do not have free water and their 2 'Biological Stuvey of the Crest Development Site, R•svurside County, California," prepared by AMC Earth and Environmental, Inc., May 2002. 9 + t r 7N/City of Palm Desert Crest/stone Eagle Section 404(b)(1) HtvAVIP February 2S, M locations close to residential development in the C"lla 11111s makes them undesirable for sheep. use. The proposed golf course fence is designed to isolate the golf course from bighorn sheep, leaving approximatoly 390± acres in Section 25 that will remain untouched and available to and protected for wildlife, including sheep, and will be monitored and protected from current adverse impacts from roaming pets apd extensive off -road vehicle use. Desert Tortoise The proposed development areas were surveyed for the presence of federal and state listed Threatened Desert Tortoise in accordance with prevailing federal protocol. A February 1990 tortoise survey (ERC 1991) found a one to two. year old card?m in Section 25 •bat no other tortoise sign. The 1991 ERC surveyors postulated that the carcass may have represented an escaped captive from the neighboring houses in the Cahuilla Hills development. The Spring 2002 survey, biologists for which concurred with the. "escaped tortoise" hypothesis, only detected a single Class 4 burrovi in the south-central portion of Section 25, which showed no sign of recent use'and was determined to be "quite old". A Class 4 burrow is defined as being of deteriorated condition, and having been sRo sibly dug by a tortoise. The extremely rugged and rocky terrain present over most of the site represents low quality habitat. Impacts from surrounding development has also further degraded the limited value of this habitat. Potential impacts to Desert Tortoise are considered minimal, if non-existent During the course of projeet'design, the developer has conferred with representatives of the U.S. Fish and Wildlife Service, California Department of•Fish and Game and the Bighorn Institute to assure a plan that minimizes impacts• to wildlife and their habitat. As a result of these consultations, an extensive mitigation program has been developed to address potential impacts - to sensitive species and habitats. • Pant Communities The MFG and USFWS have.determined that the project site impacts very limited areas of desert scrub (3.6 acres) and desert dry wash (microphyll) woodland (8.5 acres). The portion of lower Ramon Creek -which will be filled to support construction of maintenance building as, well as an area where the project developer may enhance storm water detention, are characterized by project biologists and California Department of Fish & Game as desert scrub, rather than microphyll woodland. These areas of impact are illustrated in Appendix A on Exhibit El and E2 included with this document. A 1603 Streambed Alteration Agreement has been issued for this project. A copy of this agreement has been provided to the Corpg. The agreement sets 'forth. provisions and requirements, to uritigate project impacts to peninsular bighorn sheep, desert dry wash (microphyil) woodland, and desert scrub habitats. These measures are further discussed in Sections E and F, below. The 1603 Strearnbed Alteration Agreement is hereby incorporated by reference into this document. The USFWS Biological Opinion (BO) issued for this project on November 7, 2003 includes the Service's analysis of the project's effects on PBS and Desert Tortoise. A copy of this agreement has been provided to the Corps. The BO further sets forth mitigation requirements for off -site mitigation lands that the project applicant must acquire to compensate for loss of on -site PBS 1Q TN/City of Patin Desert i t Crest/Stone Eagle -Section 404(b)(1) VhW s l pcbruary 25, 2004 i arid Desert Tortoise habitat, w well as dry wash woodland and desert scrub plant communities. These requirements are further discussed in Sections E and P, below. The BO is hereby incorporated by reference into this document i H•,ydrolo�y As previously discussed, drainage facilities designed to .adequately inanage and convey stormwater runoff throughout the project site will be constructed at the site development. The series of stormwat incorporate system a- cr and sediment control features that convey wi, . stormwater and sediment along existing and modified natural drainages of Bruce. Creek and Ramon Creek, Stormwater but not sediment will be conveyed and discharged into the Palm Valley Stormwater Channel, which occurs along the project'•s eastern boundary. The project is not expected to have a considerable or significant cumulative impact on the major serving the area. The. planned development is anticipated to create no increase drainage, facthpes se g p p in stormwater volume, peak discharge rate, or sediment yield from large floods such as the 100- year and standard project flood. The flood and sediment control facilities for the project are .designed to eliminate sediment discharge to the Palm Valley Stormwater Channel and to limit stormwater discharge at or below existing levels and below rate of discharged limits imposed by Coachella Valley Water District 3 58 Hs The soils in the upper reaches of -Ramon Creek and Bruce Greek are comprised primarily of Rock Outcrop (RO) and Rock Outcrop Uthie Torrispsamments complex (RT). As noted in the Riverside County Soil Survey, Coachella Valley Area,' these soils have a low soil horizon. Soils generated by erosion are quickly transported down into lower canyon areas. The relevant soil horizons occur in the mouth of the lower reaches of Bruce and Ramon Creek. Within these areas, soils are primarily comprised of Riverwash (RA) and Carsitas (ChC). Riverwash is a water -deposited stony, cobbey, and gravelly coarse sand. This soil is found in and adjacent to stream channels, and contains minor amounts of fine material, but is primarily comprised of sand, gravel and cobbles, with occasional boulders of up to three feet. Carsitas soils typically occur on slopes of 2 to 9 percent Cobbles and sand are found on the surface as well as within the soil profile. 11wre,are no jurisdictional wetlands occurring within the project, site. The soils found on the. project site are well drained, and as discussed in Section A.4, portions are supporting a limited microphyll woodland. It should be noted that the portion of lower Ramon Creek which will be filled to support construction of maintenance building, as well as an area where the project developer may enhance storm ' water detention,, are characterized by project biologists and C41ifornia Department of Fish 8c Game as desert scrub, rather than rnicrophyll woodland. 3 "Usting Conditions Hydrology & Sediment Yield Analysis for the Crest Project Site," Palm Desert. Riverside'County, California. prepared for Lowe Reserve Corporation, Pacific Advanced Civil Engineering, June,2AEl2. ' t "Soir Survey of Riverside County, California, Coachella Valley Area," prepared by US Dept_ of Agriculture Soil Conservation Service, September,1980- 11 •• TN1City of Palm Desert Crest/StowEaglcSection 400)(1) HIVW February 25, =4 B. GOATS OF THE COMPENSATORY MMGATION PROJECT -Type(s) and Areas) of Habitat to be Established, Restored, Enhanced and/or Preserved As` set forth in the USFWS Biological Opinion, the project proponent will transfer title or. provide a conservation easement to approximately S00i• acres of bighorn shetp habitat-irr the 'Northern Santa Rosa Recovery Region. The final and exact number of acres required to be conserved shall .equal twice the number of acres fenced as part of the proposed golf course. Ice addition to or as a part of the acquisition of bighorn sheep habitat, depending on whether the acquired area affords suitable habitat for desert tortoise, the 250t acres of tortoise habitat on the proposed golf course situ will be replaced at a 1:1 ratio. Additionally, the project proponent will purchase 10D± acres of d=rt scrub and dry wash woodland in the Martinez Canyon area to offset impacts to these plant communities and desert tortoise -in Planning Area A. This acquisition also could' contribute to the 1:1 replacement of tortoise habitat agreed to above if the area -provides suitable habitat for the species. The purchase of this'property will also benefit bighorn sheep in the Central Santa Rosa Recovery Region. Together with the on -site lands in 'Section 25,.approximately 1,000 acres would be. protected in perpetuity by the Service (see Appendix A Exhibit F3 and Exhibits 1 through 5 illustrating.the off -site mitigation parcels). Table 4 On -Site Plant Community Mitigation Upper Ramon Creek DewrtDry Wash Woodland 1.33 3:1- Lower Ramon Creak Desert Dry Wash Woodland 4.27 3:1 Upper Bruce Creek Desert DryWash Woodland 334 3:1 Lower Bruce Creek Desert Drry Wasb Woodland 0.63 3: l DDWW Subtotal 8.57 3:1 Lower Br= CreeMewer Ramon Crwi ' Desert Scrub 3.60 1:1 Ramon Creek Tributaries Desert Snub 3.00 1:1 DS Subtotal 6.60 1:1 Total 15.17 Mitigation mdo as der rnfaed by California Dept. of Fish and Game in the pmicct 1603 Stmo bed Alteration Agreement. Mitigation requirements for Desert Dry Wash (miaophyll) woodland wilt be -met through rc•vcgaidon of impacted arras on - site, and acquisition of off -site compwswry mitigation iands.as shown is Table 6. Source: Pacific Advanced Civil Eugineertn& December 18, 20W 12 TN/City of Palm Desert Crest/Stone Eagle -Section 404(b)(1) HMW February 25,2004 Table 5 On -Site Wildlife Miitiltation Location Type of Habitat Approximate Mitigation Ratio/Acreage Acreaget Requirementsx _ Section 25 - Peninsular BighornSheep 390 390 • r'.r WWgation rcquite a is ss determined by MFG in the Crest/Stone Eagle 1603 Streambed Alteration Agreement and USM in the Crest/Swac Ente Biological Opinion Final and exact number of acres required to be conserved off -site shall equal twice the uumbtr of aces fenced as part of the proposed golf coarse: See Table 6 for off -site mitigation lands to complete these requirements. For on -site mitigation lands in Section 25. project psoponeat will transfer title or provide conservation easement to coachdla Valley Mountains Conservancy or other appropriate entity in perpetuity. Source: Cresttstone Eagle] 6D3 Streambed Alteration Agreement MDFG). Table 6 Approved Off -Site Mitigation Sites Parcel Name/No. Type of Mbuat" Acreage Doorley APN 686-130-005 Peninsular Bighorn Sheep 160.00 APN 686-120-003 Peninsular Bighorn Sheep 22.23 Haysfaek APN 635-030-009 Peninsular Bighorn Sheep 158.25 Desert Ttmoise HaystscktAmlanco APN 635-030-D12 PettkMar Bighorb Sheep 156.38 DIck . APN 753-340.008 Desert Dry wash woodland 100-W Desert Scrub DesertTortoise Egon APN 635-430-WI Peninsular Bighorn Sheep 100.60 Desert Tertoise Acquisition of APH 753-340-008 could also contribute to the 1:1 replacement of tortoise habitat if the area provides suitable habitat for the species. The purchase of this property will also benefit bighorn sheep in the Central Santa Rosa Recovery Region. 2 Real and exact number of acres required to be conserved off -site shall equal twice the number of acres fenced as part of the proposed golf course. Based on golf course at 250 acres. Mitigation rados/requtred acreages as follows Desert Dry Wash Woodland 3.1 (l:l restored on -site, 2:I off -site); Desert Scrub 1:1 (restored on -site, with Approximately 6.6 acres additional DS habitat provided off site): Desert Tortoise 1.1, or 250 acres (requirement met with lands on and off -site): PBS 2:1, or 500 acres (mice the number of acres fenced for golf course; requirement met with lands on and off -site). 20f thelo0,00 acres on the'Dick property, approximately 48.3 acres have been estimated to be waters of the U.S. comprised of 41.7 acres of desert dry wash woodland, and 6.6 acres of desert scrub. ¢Egan property not fisted in Biological Opinion; approved by Guy Wagner (USFWS) and Eddie Mono (CDFG). s Of these properties, or other Corps and Service approved parcels, the project applicant plans to acquire a subset that will total a minimum of 541.07 acres, subicct to regulatory agency approval, Source: Destination Development Corporation, December 2003. As shown in the preceding tables, total mitigation lands consist of on and off -site habitat Dedicationhlrstoration of these on -site lands, in conjunction with acquisition of the approved off - site mitigation lands, will comply with requirements set forth by the U.S. Fish and Wildlife Setvipe in the Crest/Stone Eagle Biological Opinion and the California Department of Fish and 13 TNIC"ity of Palm Desert Cresdstone Eagle -Section 404(bxl) BMW February n 2W4 Garin in the Crest/Stone Eagle 1603 Streambed Alteration Agreement. Six off -site properties are currently being considered and are approved by USFWS for conservation of open space preservations (see Exhibit F3 and Exlvbits I through'5). Of these properties an estimated jurisdictional delineation of waters of the U.S. was done on the Dick .propexty because it exhibited the highest abundance of waters of the U.S. As set forth in the Department of the Army Permit and the Biological Opinion for this project, the permittee shall acquire and record a conservation easement over a subset of the mitigation land parcels listed in Table 6, or other Corps and Service approved substitute parcels, that will total a minimum of 541.07 acres. 2, Specific Functions and Values of HabitatType(s) to be Established, Restored, Enhanced and/or served Habitat to be established, restored, enhanced and/or preserved consists of desert scxuV and dry wash woodland, -peninsular bighorn sheep habitat, and desert tortoise habitat. Impacted areas have been quantified in Section A.4, above, and on and off -site mitigation lands are shown in the preceding tables. Functions and values of on -site habitat have been thoroughly analyzed in the Crest/Stone Eagle SEIR, incorporated by reference into this document. Impacts to PBS and Desert Tortoise have been further analyzed by the U.S. Fish and Wildlife Service in the Cxest(Stond Eagle Biological Opinion letter. Yunetions.and values of off site lands specified as compensation for the loss of on -site PBS and/or Desert Tortoise habitat; and desert scrub and desert dry wash woodland plant communities? are consistent with requirements to support for -those species and habitats. These lands have been found to be acceptable as compensatory mitigation for project impacts to these habitats by the California Department of Fish and Game (CDFG), as set forth in the 1063 Strelambed .Alteration Agreement, and by the U.S. fish and Wildlife Service (USFWSJ as set forth in the Biological Opinion (BO) letter issued for this project. According to the BO, it is the assessment of the USFWS that "the conservation value of this 600 acres of compensation habitat exceeds the value of the 250 acres that would be lost on the proposed project site." With regard to PBS, the BO states that "the proposed habitat replacement would result in a net reduction in the level of threat and an increase in the likelihood of recovery for these ewe groups.' 3. Time Lapse Between Jurisdictional Impacts and Expected Compensatory r Mitigation Success required b the USFWS in the Biological Opinion issued for this project, the acquisition of As r-eq • y P GP p j � � off -site compensatory mitigation lands shall take place prior to initiation of project construction. In accordance with. requirements set forth by CDFG in the 1603 Agreement, approximately 390 acres of PBS habitat (based on a 250-acre golf course) on the project site adjacent to the golf course in Section 25 shall be transferred to the Coachefla Valley Mountains Conservancy or other'appropriate entity through a title transfer or cons&vation easement in perpetuity. These lands will be -separated from the golf course by a sheep exclusion fence, to be constructed prior to golf, course construction. s 'Biological Opinion Letter," Stone Eagle Project (fon=ly Crest Golf Club and Residential Village," November 7, 2003. 14• .' . TNCktf of Palm Desert Crest/Stone Eagl&,.=t on 4o4(bx1) BMW February25, 2004 Re-establishmenthevegetation of impacted desert dry wash woodland and desert scrub habitat will take place commensurate with project construction and buildout. Revegetation of impacted areas will begin immediately as soon as construction impacts to each area are completed. It is estimated that impacted a= of desert dry wash Woodland and desert scrub habitat could be re- established within two years of mvegetation. However, as noted In Section C.3, a more conservatively defined target performance standards used herein: This standard sets a target function and value standard as follows: within three years of rovegetation, a re -naturalized site shall achieve a minimum of 40 percent of natural condition coverage (see Table 7). With regard to on -site revegetation, there will be a five-year monitoring program and annual reporting shall be provided to the, Corps reporting on the efficacy'of the revegctation effort and meeting the success criteria set forth in Table 7. If revegetation is proven effective at the end of five years, no further monitoring of revegetated areas shall be required. . Table 7 Mitigation Success Criteria By Year Year Percent of Natural Condition Coverage 1 10 2 20 4 60 5 80 Source Robot Smith US Am►X Corps of EYi im lannary i542QD4. ' 4. Estimated Total Cost Land Acquisition Costs: Project lands, including on -site mitiption lands: $19 milbort6 off -site mitigation lands: $635,000 h anagement Costs: Management costs, mitigation lands:. $25,000 year$ 6 Ted Lennon, Destination Development Corporation, personak commimication, January 1, 2004. 7 John Fitzpatrick, Destination Development Corporation, personal communication, December 31, 2004. 1 Op-QL 15 l ' : MCSty of Patin Desert CreWS tone Eagle -Section 404(b)(I) ENW February 25, 2004 1 udeation Costs: Assumes 15 acres of on -site Mitigation lands at cost of land restoration at $50,000 per acre - Total estitnated cost for land restoration will not exceed $750,000. Other Funding: As set forth in the Department of the Army Permit, the permittee shall submit a performance bond to the Corps prior to initiation Af construction to insuze that all special condipons of the permit are complied with. As set forth in the USFWS Biological Opinion, the project proponent shall sponsor two annual ,golf fund raisers to benefit Bighorn institute and Friends of Desert Mountains. Cost to sponsor these events has not yet been:dctermined, nor is a specific funding target required. The proponent shall also create an endowment fund to provide for future management of off -site conservation lands at a 2003 rate of $200 per acre. This is a one-time fee. Based on this rate, and the acreage of off -site mitigation lands shown in Table 6, above, cost to the proponent contribution to establish this fund would be approximately $139,492. 5. , Special Aquatic habitats, Other Waters of tho U.S., and Non -Jurisdictional Areas Proposed as Compensatory Mitigation Approximately 12.38 acres has been detemiined to be waters of the US, which includes desert dry wash. woodland and desert scrub habitat that would be permanently impacted by the project. On -site mitigation area for these habitats includes 15.17 acres. In addition, a Jurisdictional Delineation has been conducted on the approximately 100 acres of off -site mitigation lands. Of this 100 acres, 41.7 acres was determined to be Desert Dry Wash Woodland and the remainder was Desert Serub.9 The off -site mitigation lands have been approved by the CDFG and USFWS as off -site compensatory mitigation for the loss of on -site PBS, Desert Tortoise, desert dry wash woodland and desert scrub habitat. No other special aquatic habitats or other waters of the U.S. are proposed as compensatory mitigation. Twa Nova P14nWng & Research delineation basal on USGS Marti= 7.5 Quadrangle, January 8, 2004. 116 4i .. n4/city of Penn Desert Cresotone Fagte-Sectioa 404(b)(1) F3hSIP February 25, 2004 C. DESCRIPTION OF THE PROPOSED COMPENSATORY MITIGATION SITE 1. Location and Size of Compensatory Mitigation Site On -Site Comvettsatory Mitigation Site Approximately 390 acres adjacent to the proposed C =t/Stone Eagle Golf Course A.portion of Section 25, T5S, R5E, SBB&M Approved Off -Site ComtaensatorvMitigation Sites The following describes the approved off -site compensatory mitigation sites (see Appendix A Exhibit P and Exhibits 1 through 5). • Doortey 182.22 acres, comprised of the following. o 160,00 acres APN 686-120-003 A portion of the NE 1/4 of Section 8, T5S, R5E, SBB&M. o, 22,23 acres APN 686-130-005 A portion of the SE 114 of Section 5, T5S, R5E, SBB&M. + Haystack 158.25 acres APN 635-030-009 A portion of •tlta SW 1/4 of Sec 3, US, R5E, SBB&M • HaystacWAmlanco 156.38 acres. APN 635-030-12 A portion of -the NE 1/4 of Section 3, US, R5E, SBB&M. . • 'Dick 100.00 acres APN 753•-340-008 A portion of the E 1/2 of Section 33, T7S, R7E, SBB&M. • Egan 100.60 APN 635-430-001 A p6rtion of the NE 1/4 of Section 23, T6S, RSE, SBB&M 2. Ownership Status All compensatory mitigation lands will be ' acquired and managed by the project proponent, ' Destination Development Corporation/Stone Eagle LLC. As set forth in the Crest/Stone Eagle Biological Opinion, the Corporation will transfer title or conservation easement in perpetuity for on -site mitigation lands in Section 25 to the Coachella Valley Mountains Conservancy or other appropriate entity approved by the USFWS prior to project construction. The Corporation will transfer title or conservation easement in perpetuity for off -site mitigation lands to the California Department of Fish and Game, Bureau of Land Management (BLND, or other appropriate entity approved by the USFWS prior to project construction. 17- '� , • , Y , � J.. - .. • '_ .. • , r• 3'DUCity of Palm Dcsert C=Y3tonc7Agle-Swdoa 404(bXl) HMW February 25,2004 3. Existing Functions 'and Values of the Compensatory Mitigation Site As discussed in Section B3, existing functions and values of all on -site mitigation lands have beenthoroughly analyzed in the Crest Golf Course and Residential Village SEM. CDFG and USFWS have approved all off --site mitigation .lands as suitable for mitigation of impacts to species and habitat impacted by the project. Existing functions and values of these lands are consistept.with those necessary to support the impacted species. 4. Jurisdictional Delineation Cif applicable) `here am approximately 12.3S.aores of jurisdictional areas on-site.that will be impacted by the project Of the off -site properties, an estimated jurisdictional delineation of waters of the US. was done on the Dick property because it exhibited the highest abundance of waters of the U.S. Approximately 41.7 acres of the 100 acres on the Dick property was determined to be Desert Dry Wash Woodland; the remainder was Desert Scrub (see Appendix A Exhibit F3). 5. Present and Proposed uses of the Compensatory Mitigation site and All Adjacent Areas On -Site Approximately 390 acres adjacent to the proposed CrestlStone Eagle Golf Course Zoning; County of Riverside: W-2 (Controlled Development) City of Palm Desert: Pre -annexation zoning requested: OS (Open Space) Off -Site • Doorley 182.22 acres, comprised of the following. 0 160.00 acres APN 686-120-W3 Zoning, City of Palm -Springs: 0-20•(Open Land,1 du/20 ac) o 2223 acres APN APN 686-130-605 . Zoning, City of Palen Springs:•0-20 (Open ,hand, 1 du/20 ac) • Haystack 15825 acres APN 635-030-009, Zoning, County of Riverside: R-1-1('1 du/ac) • Haystack/Amlanco 156.38 acres APN 635-M12 Zoning, County of Riverside: R-1-1 (1 du/ac) Dick 100_00 acres APN 753-340-008 Zoning, County of Riverside: W-2 (Controlled Development) • Egan 100.60 APN 635-430-001 Zoning, County of Riverside: W-2 (Controlled l�eveloprment) Land use; All off -site mitigation lands are currently vacant and undeveloped. Lands adjacent to the off -site mitigation lands are owned by the Bureau of Land Management and 18 THICity of Palm Desert ' CrewV tone Eagle -Section 404(b)(1) HI W Febnrary al. 2004 California Department of Fish and Game, with some private land ownership adjacent to .the Haystack parcels. Adjacent lands are primarily open space lands. •Lands west and north of the.couserved.portion of Section 25 are vacant and undisturbed foothills, canyons and plateaus of the Santa Rosa Mountains_ To the east is hilly terrain with scattered single-family homes on large lots. The proposed Stone Eagle Golf Course will occur on approxunately 250 acres immediately southeast of the conserved areas, within Section- 25. To the south is substantial but scattered low density single-family development on large lots, water storage tanks and several unimproved drainages and limited flood control improvements. bong -term protection measures include the recently adopted Riverside County General Plan and the proposed Coachella Valley Multiple Species Habitat Conservation PIan (Plan). The long-term protection measures afforded by these Plans are briefly discussed below. Riverside County General Plan1° four of the six parcels listed above are located in unincorporated areas of Riverside County in the Coachella Valley. The County adopted a new General Plan on October 7, 2003. The General Plan provides new land use designations for all parcels in the unincorporated area of Riverside County. The County is currently reviewing zoning designations within its planning. area -to ensure their consistency with land use designations in the new General. Plan. This 'review process is expected to provide further protection for lands containing stn4itive environmental resources by restricting permitted uses to those which would not adversely impact those resources! Coachella Valley Multiple S� Habitat Conservation Plan 11 - The Coachella Valley Association of Governments (CVAG), in conjunction with a number of federal, state, and regional agencies is currently (2003) preparing the Coachella Valley Multiple Species Habitat Conservation Plan (Plan). The MSHCP planning area includes the entire Coachella Valley and surrounding mountains. All of the five parcels listed above are within the planning area for the Plan. The Plan is intended to address current and potential future state and federal Endangered Species Act issues in the Plan Area. The MSHCP 'Memorandum of Understanding ("Planning Agreement'), under the auspices of CVAG, gvas originally signed in late 1995 and' early 1996 by Cathedral -City, Coachella, Desert Hot Springs, Indian Wells, Indio, La QQtainta, Palm Desert, Palm Springs, and Rancho Mirage; County bf Riverside (County); U-S. Fish and Wildlife Service (USFWS); California Department of Fish and Gamer (CDFG); Bureau of Land Management (BLM); U.S. Forest Service (LISPS); and National Park Service (NPS)_ Subsequently, Caltrans, Coachella Valley Water District (CVWD), Desert Water Agency (DWA), Imperial Irrigation District (LID), Riverside County Flood - . 10 www.tlMa.co.ri _M;dax&us, accessed January 2, 2004. "Coachella Valley Multiple Species Habitat Conservation Plan(Natural Community Conservation Plan, final Administrative Draft," prepared by Coachella Valley Association of Governments and {rowheila Valley Mountains Conservancy, December 1, 2003. 19 TN/City of Palm Desert Crewstone Eaet,-A Lion 404(b)(1) HMW Febraa:y 2S, 2004 Control and Water Conservation District (County Flood Coritrol),'Riv=ide County Waste Mp. agement Department (County Waste), California Department of Parks and Recreation (State.Parks), and Coachella Valley Mountains Conservancy decided to participate -.Since signing the original Memorandum -of Understanding, the -.Parties to the agreement have agreed to an amendment stipulating that the Plan will meet the intent of the Natural Community Conservation Planning Act (NCCF Act) as well as the CaUfgrWa Endangered Species Act (CFSA) and the FedeW Endangered Species Act (FESA). The amendment also states that the Planning Agreement constitutes an agreement to prepare a -Natural Cotmnttttity Conservation flan (NCCP)'as specified in California Fish, and Gam Code 'Section 2810. 'Tice Plan, which balances environmental protection and econorzuc development objectives in the Plan Area, simplifies compliance with endangered species related laws. It is intended to satisfy the legal requirements for the issuance of an incidental Take Permit that will allow the Take of species covered by the Plan in the course of otherwise lawful activities. To the maxiznum extent practicable Plan will, to the, minimize and uaidiate ft. impacts of the Taidng. Adoption of the MSHCP is anticipated prior to the end of 2004. . 6. Referenced Site(s) Referenced sites include' approximately 15.17 acres op -sits to ' be revegetated after site disturbance. As previously stated, these sites will be revegetated immediately following completion of construction -related activities in each area. It may generally be expected that natural vegetation would be re-established within two years_ Thb more conservaUive•perfortpance standard for target values and functions for this project is •defined as follows: within three years of revegetation, a re -naturalized site shall achieve a minimum of 40 percent of natural condition coverage; and 80 percent in five•years. 20 i • TNtC1ty'gfPalm Desert Crest/Stone EaglaSec6on 404(b)(1)1iMle February 25, 2004 D. IMPLLMENTA'TiON PLAN FOR THE CONTENSATORY MIGIMON SITE 1. Rationale for Expecting Implementation Success Extensive and on -going consultations with the California•Depattinent of Fish and Game and U.S. Fish'and Wildlife Service have resulted in a thorough and stringent compliance program that incorporates review and approval processes, project and maintenance monitoring, and funding mechanisms for mitigation of impacts. The program includes requirements. for the project proponene's acquisition of carefully selected suitable off -site mitigation lands. These lands have been approved by both agencies as appropriate and adequate, in terms of size, location, and environmental functions and values, to compensate for the loss of on -site peninsular, bighorn sheep, desert tortoise, desert dry wash (microphyll) woodland and -desert scrub habitat. The project landscape plan, which will provide for the revegetadon of approximately 1238 acres of impacted jmisdlctional areas'on-site, is subject to approval by these agencies prior to project construction, with a total of 15.17 acres to be. revegetated on -site. The project proponent will comply with USMS and CDFG conditions for approval of the landscape plan. Ile 1603 Agreement requires the pzbject proponent to prepare and submit for CDFG approval detailed zevegetation/enhancement plans for the revegetation and resioration of, on -site dry wash and desert -scrub babitat affected by the project. Review and approval of these plans, as well as compliance with other the requirements set forth by the CDFG in the Crest/Stone Eagle 1603 Strcambcd Alteration Agreement and by the USFWS in the Crest/Stone Eagle Biological Opinion provides the rationale for expecting implementation success. 2_ Responsible parties Ted Lannon President, Stone Eagle LI.0 Sr. V.P., Destination Development Corporation 74-WI Reserve Drive Indian Wells, CA 92210 (760) 779-1646 3. Schedule Off -site mitigation lands will be acquired prior to initiation of project construction. In addition, on -site revegetadon of approximately 15.17 acres of iinpacted jtuisdictionai areas win take place commensurate with project construction. Re-establishment of plants in revegetated areas is expected to be complete within two to three years of revegetation, Title transfer or conservation easement to CVMC or other appropriate entity for conservation lands in Section 25 will be executed prior to project construction. 21 Wcity of Palm Aemn CresdStow Eagle don 404(b)(I) Hh4W February 25, 2004 4. Site Preparation Site preparation' is commensurate with site disturbance. As •previously noied, revegetation will 'begin immediately following completion of construction in each impacted area on -site. �. Planting & Irrigation Plan A prelirninary landscape and 'irrigation plan is included with the exiubits at the end of this document (See Appendix A, Exhibits GI through 07). A plant palette prepared by the project biologist is also attached aE the 6d of this document (Appendix B). It includes primary (dominant species) and secondary, (understory) components for desert dry wash woodland and desert scrub habitat. 6. • As Built -Conditions As set forth in the US Army Corps of Engineers Mitigation Guidelines and Monitoring Requirements, as -built conditions •will•be certified by a professional engineer and submitted to the Corps within 45 days of fully implementing the compensatory mitigation. Q) 7MCity of Palm Desert Cmst/Stonc Bagta•Sectlon 400)(1) RNM February 25, 2004 F_ bUINTENANCEACITIVITIES DURING THE MONITORING PERIOD 1. Maintenance Activities The Crest/Stone, Eagle Biological Opinion authorizes the Corporation. to assume direct respgnsibility for management of conservation lands within Section 25. Management efforts shall include' the removal of invasive, exotic plant species and poisonous plants, and enhancement and restoration of water sources located within Section 25, The BO further states 'that the management plan shallby approved by the Service. prior to project construction, the project proponent shall provide the USFWS with the management plan for review and approval. A, 401 Water Quality Certification has been issued by the Regional Water Quality Control Board (Colorado River Basin Region) for this project. The 401 application and associated Best Management PracticeslIntegrated Pest Management plan effectively eliminates the discharge of fertilizers, herbicides and pesticides into surfage waters and ground water. The stormwater management system designed for the Crtst/Stone Eagle project will conform to National Pollutant Discharge Elimination System (NPDES) standards. The 401 'Water Quality Standards Permit Application, including the •BMP/IMP', and cerUcation, have been provided to the U.S. ,Army Corps of Engineers. A Conservation Easement between the project proponent and the Coachella Valley Mountains Conservancy or other appropriate• endtp approved by the USFWS for bn-site mitigation lands in Section 25 will dedicates those lands for conservation in perpetuity. it restricts permitted activities on those lands to those expressly stated in the Easement Agreement. It restricts access by persons other than those authorized access for purposes of land management, and allows for mechanisms to ensure that access by domestic pets is prevented as much as is feasible. The I603 Streambed Alteration Agreement sets forth an extensive list of requirements and conditions; these include specific management activities on mitigation lands, and scheduling and funding mechanisms for these activities. The Biological opinion -requires that 'the project proponent remove all can ay existing unauthorized trails from Section 25, including the unauthorized trail leading to Ramon Peak, and shall post and enforce no trespassing restrictions at all likely points of entry within six months after the beginning of construction. The project proponent (Corporation) shall employ security personnel for the life of the project to periodically patrol the area to prevent unauthorized trail construction, cross-country hiking and trespassing, off -road vehicle traffic, and domestic dogs from entering bighorn sheep habitat through Corporation lands. The Biological Opinion also requires that prior to earth -moving activities, the project proponent designate an authorized biologist who will be responsible for overseeing compliance with desert tortoise protection measures. No more than 24 hours prior to any earth moving activity, the authorized biologist shall inspect the construction. site for the presence of desert tortoise or burrows. 23 r' TN Qty of Palm Desert: Crest/Stone Eagle -Suction 40*Xl) HhW ' Rhmary 25, 2004 2. Responsible Pares . Ted Lennon President; Stone Fagle:LLC Sr. V.R., Destination Development Corporation 74-001•Reserve Drive Indian Wells, CA 9Z210• ' 60) 779-1646 3, Schedule As noted in Section E.1, Maintenance Activities, the Crest/Stone Eagle Biological Opinion sets forth certain time -sensitive activities for management of on -site mitigation lands in Section 25. These include removal of unauthorized trmgs, continuous monitoring to prevent unauthorized trail construction, hiking, trespassing, off -road vehicle traffic; and access by domestic pets through Corporation •lands. These activities also relate to designation of an authorized biologist to ,oveFsee compliance with desert tortoise protection measures, and site inspection by the . authorized biologist prior to earth moving activities. The Biological Opinion provides for development of funding mechanisms for management of on and off -site mitigation lands. it requires that tbc, project proponent, within six months following the'effective date of ihe'Biological Opinion, provide a detailed plan outlining the creation of an endowment fund to provide for future management of off -site; mitigation lands. It further requires the project proponent to sponsor, in perpetuity, two annual golf tournament fund raisers per year to benefit the general funds of the Bighorn Institute and the Friends of the Desert Mountains. This funding mechanism is to be established prior to project construction. Time sensitive requirements set forth in the -Department of the Army permit for this project include subinittal of a performance bond prior of $750,000 to initiation of construction to insure That all special conditions of the permit are complied with. These include -the successful completion of the HMMP, as well as klivW O&M associated with the project for five years. The permit also sets forth compliance requirements with other conditions of approval prior to initiation of construction. These include notification of USFWS of intended project initiation dates and anticipated construction duration,. acquisition and recordation of conservation .easements as specified in the permit and the L1SFWS BO, Corps review and approval of final detail construction plans, and a pre -construction conference to educate personnel with the project regarding authorized activities. The Crest/Stone Eagle 1603 Streambed Alteration Agreement requires the project proponent to coordinate with the California Department of Fish and Game for the remediation and enhancement of the on -site seeps in Section 25. The remediation program is to be approved by the CDFG and USFWS, and will be carried ont over a period of five years. The project proponent is also required to remove or have removed all invasive, non-native plant species occurring on on -sine conservation/mitigation lands over a period of five years. 24 TTUCi . of PaimDcsert. Crest/Stone Eaglo-Section 404(b)(I) i& ' Fobiwy 25, 2004 j The CDFG further requires the project proponent to'submit a security (e.g., an irrevocable letter of credit, pledge savings account or -CD) for the amount of complete restoradon of streambed covered by this agreement prior to construction of grading. A cost estimate shall be submitted to the CDFG v6fin 30 days of execution of the 1603 Agreement 25 7N/City of Palm Des -CxcsdStone Eagle-Scc n 404(b)(1) HMW Febr, 25,2004 F. MONITORING PLAN•FOR THE COMPENSATORY MITIGATION SITE 1. Performance standards for target dates and success criterla Itmay generally be erected .that natural vegetation would be re-established within two years. The more conservative performance standard for target values and -functions for this project is -defined as follows: within three years of revegetation and renanrralization as set forth hi Table 7, plantings in this area 'shall. be established within 3 years and -shall achieve a minimum of 40 percent of natural condition coverage within that period (see Table 7 for 5 year plan). 2. Target Functions and Values A baseline Vegetation Transect study to detr urine target Functions and Values will be completed by the ' project, biologist, and submitted to the USFWS for approval prior to cdmpletion of the revegetation.plan. The Corps will field review the revegetated areas during compliance surveys to assure efficacious mitigation. 3, Target Hydrological Regime The project SEiR provides a thorough analysis of hydrological conditions on the project site, including on -site mitigation lands. It is anticipated that peak stormwater discharge rate from each of the two watersheds affecting the subject property will be less than or equal to the peak flow rate with existing conditions. Artificial irrigation shall be used to assure the establishment and survival of all revegetated on -site mitigation lands. As previously noted, the identified off -site mitigation lands have been approved by the appropriate permitting state •and federal agencies, and have been determined to be adequate and suitable to mitigate on -site impacts to peninsular bighorn sheep, desert tortoise, desertt dry wash -woodland and desert scrub habitat. As such, target functions and values, including the target hydrological regime, are also considered suitable to support these habitats. 4. Target Jurisdictional and Non -Jurisdictional Acreages- to be Established, Restored, Enhanced and/or Preserved Tables. 3, 4, and 5 in Section B.1 of this document list the target Jurisdictional and Non - Jurisdictional Acreages to be established, restored or preserved. These include on and off4te lands, as shown in these tables and discussed throughour this document.' These target acreages are also documented in the Biological Opinion and the 1603 Streambed Alteration Agreement issued for this project. 5. Monitoring Methods The Crest/Stone Eagle Biological Opinion and the 1603 Sweambed Alteration Agreement set forth a series of conditions and requirements for the project proponent with regard to management of the compensatory mitigation lands. These measures and requirements provide an intrinsic mechanism for monitoring the implementation, management and target performance 26 pQdty of Palm D=9 GcWSiotu Eagio•Secaon 40*)(1) Z tiAvtl' February 25, 2004 standards that established to mitigate impacts to peninsular bighorn -sheep, desert tortoise,. desert -dry wash woodland and desert scrub habitat from this project. Methodology includes fulfillment of requirements prior to initiation *of grading, such as review and approval of landscape&rigation and seep remediation, .and enhanceinent plans, review and approval of detailed• tovegetation plans, designation o€ biologist to oversee desert tortoise protection measures, securing of funding for revegetation of affected streambed on -site, and annual fundraisers. Representatives of monitoring agencies reserve the right to enter the project site at any time to ensure compliance with terms and conditions of permits and agreements. 6. Monitoring Schedule Measures described under "Amount or Extent of Take Anticipated" in the Crest/Stone Eagle Biological Opinion are non -discretionary and will be, binding conditions of the 404 Department of the Array permit for work that is likely to adversely affect listed species. As shown in Section R7,, below, the project proponent shall provide an annual written report to the USNWS by January 31 of each year the Biological Opinion is in effect. The project proponent shall comply with the monitoring schedule for submittal of reports, designation of biologist to oversee desert tortoise protection methods, and other schedules as set forth in the Biological Opinion issued by the USFWS, and the Crest/Stone Eagle 1603 Streambed Alteration Agreement issued by CDFG. 7. Annual Monitoring Reports As set forth in the Cmst/Stone Eagle Biological Opinion issued by the U S. Fish and Wildlife Service, the project proponent shall provide a written, annual report to the United States Reh and Wildlife Service by January 31 of each year, If the revegetation is proven to be effective after 5 years, no further •monitoring of revegetation is required. The report shall document implementation of the proposed conservation measures and compliance with the terms and conditions in this incidental take statement. The report shall contain a discussion of the activities conducted, the approximate acreage of habitat affected by agency activities, problems encountered in implementing terms and conditions, recommendations for modifying the biological opinion to enhance the conservation of Peninsular bighorn sheep and desert tortoise, results of surveys, evaluations, and reviews, and information on new locations of bighorn sheep. This document will assist the Service and the Corps in evaluating future measure for the conservation of the species. With regard to on -site revegetation, there will be a five-year monitoring program and annual reporting shall be provided to the Corps reporting on the efficacy of the'revegetation effort and meeting the success criteria set forth in 'Table 7. if reveget4on is proven effective at the end of five years, no farther monitoring of revegetated areas shall be required 27: TN/City of Palm Desen CresdStone Ea& 4e on 404(b)(1) EMW February 25, 2004 G. COMPLETION OF COMPENSATORY IMIGATYON 1. Notification of completion: Upon completion of the initial monitoring period; and once final success criteria have been met, the project proponent shall notify'. the Corps when submitting the final report documenting this completion. 2. Agency Confirmation Following receipt of the report, project proponent shall coordinate a site visit to confirm the completion of the mitigation effort and any delineation and to determine whether on -site mitigation has met success criteria set forth in this Plan. 28 TN/City of Palm Desert CmWStme l✓agk4wdon 404(b)(1) M&tl? Nbn+ary 25, 2004 H. C©NTINCENCY MEASURES 1. Initiating Procedures As set forth in the U.S. Army Corps Habitat Mitigation and Monitoring Proposal Guidelines, if an annual performance. criterion is not met for all or any portion of the mitigation project in any year, qr if the final success criteria are not met, the permittee shall prepare an analysis of the cause(s) of failure and, if determined necessary by the Corps; propose remedial action for -approval. if the mitigation site' has not met the performance criterion, the responsible party maintenance and monitoring obligations continue until the Corps gives final project confirmation. 2. Atternative'Locafioitsfor Contingency Compensatory Mitigation Off --site mitigation lands have been identified by the project proponent, and approved as appropriate 'by the CDFG and USFWS. Identified and approved lands are available and acquisition will be accomplished prior to project construction. 3. Funding Mechanjsms The Crest(Stone Eagle Department of the ATMY Permit (File # 200201135-RES), the'Crest/Stone Eagle Biological Opinion, and the Crest/Stone Eagle Streambed Alteration Agreement provide for funding compensatory and on -site revegetation mitigation as follows: a. Prior to construction in waters of the .U.S., the pennittee shall submit a performance bond to the Corps of $750,000 to insure that all special conditions of this permit are complied with. Special conditions include 'the successful completion of the 0", with 1iMIv1P OW associated with the project, for five years, and the onsite and offsite dedication and reco;lotion of the conservation easement of over 1000 acres, per the Biological Opinion. The permittee shall comply with all jegWremeats regarding the bonding company and performance bond conditions, as set forth in the Crest/Stone Eagle Department of the Army permit. ' b. The project proponent shall sponsor, in perpetuity, two annual golf tournament fund-raisers each to the benefit of the general funds of the Bighorn Institute and the Friends of the- Desert Mountains for the -acquisition-, management and monitoring of conservation lands identified above or other appropriate use. No specific funding target is required but the project proponent shall make a good . faith effort tp optimiie funding from these annual events. The funding mechanism, and responsible management entity shall be established prior to project construction. The, project conservation lands shall be managed by an entity agreed upon by the project proponent, City, Department and tine U.S. Fish and Wildlife Service. The Bighorn Institute or other acceptable'entity shall be selected by the City and/or resource agencies to provide monitoring in the first year. R TTBCity of Palm Vcgert Crest/Stone Eagte�SeWon 4")(1) Hboo Ply 25� 2004 C. A seatrdty, (e.g. an irrevocable letter of credit, pledge savings account or CD) for -the amount of complete restoration of strumbed covered by this agreement shall be submitted to the Department prior to initiation of construction activities: This amount shall be b'ascd on a.cost estimate that shall be submitted to the Department for approval within 30 days of signing this Agreement. The security shall be approved by the Department's legal advisors prior to its execution, and shall allow the Department at its sole discretion to, recover finds immediately if the Department determines thecae has been a defauIL d. The project proponent (Corporation) shall create an endowment fund, foundation, or other mutually agreed upon entity to provide for the future management of conservation lands other than Section 25, which the Corporation shall manage, at the 2003 rate of $200/acre• This is a one-time endowment. The Corporation shall present a detailed plan • for approval by the U.S. Fish and Wildlife Service approval within six months following the date this biological 'opinion becomes effective. The Corporation shall place a permanent conservation easement on all conservation lands (other than Section 25) or donate such lands to the California Department of Fish and Game, Bureau of Land Management or other entity approved by the,USFWS prior to beginning construction. 4. Responsible Parties Ted Lennon President, Stone Eagle LLC Sr. V,P., Destination Development Corporation 74-001 Reserve Drive Indian Wells, CA 92210 (760) 779-1646 • 30. Exhibit D Title Report -29- 300081746.2 Fidelity National. Title Company PRELIMINARY REPORT In response to the application for a policy of title insurance referenced herein, Fidelity National Title Company hereby reports that it is prepared to issue, or cause to be issued, as of the date hereof a policy or policies of title insurance describing the land and the estate or interest therein hereinafter set forth, insuring against loss which may be sustained by reason of any defect, lien or encumbrance not shown or referred to as an exception herein or not excluded from coverage pursuant to the printed Schedules, Conditions and Stipulations or Conditions of said policy forms. The printed Exceptions and Exclusions from the coverage and Limitations on Covered Risks of'said policy or policies are set forth in Attachment One. The policy to be issued may contain an arbitration clause. When the Amount of Insurance is less than that set forth in the arbitration clause, all arbitrable matters shall be arbitrated at the option of either the Company or the Insured as the exclusive remedy of the parties. Limitations on Covered Risks applicable to the CLTA and ALTA Homeowner's Policies of Title Insurance which establish a Deductible Amount and a Maximum Dollar Limit ofLiabiliryfor certain coverages are also set forth in Attachment One. Copies of the policy forms should be read. They are available from the office which issued this report. This report (and any supplements or amendments hereto) is issued solely for the purpose offaeilitating the issuance of a policy of title insurance and no liability is assumed hereby. If it is desired that liability be assumed prior to the issuance of a policy of'title insurance, a Binder or Commitment should be requested. The policy(s) of title insurance to be issued hereunder will be policy(s) of Fidelity National Title Insurance Company, a California corporation. Please read the exceptions shown or referred to herein and the exceptions and exclusions set forth in Attachment One of this report carefully. The exceptions and exclusions are meant to provide you with notice of matters which are not covered under the terms of the title insurance policy and should be carefully considered It is important to note that this preliminary report is not a written representation as to the condition of title and may not list all liens, defects and encumbrances affecting title to the land Countersigned Fidelity National Title Company BY � SEAL ATTEST Secretary CLTA Preliminary Report Form -Modified (1 1/ 17/06) visit us on our website: www.fnbc.com Fidelity National Title Company ISSUING OFFICE: 1300 Dove Street, Suite 310 • Newport Beach, CA 92660 949 622-5000 • FAX Call for Fax PRELIMINARY REPORT Amended Title Officer: Patti Porter Title No.: 10-725127369-E-PP Locate No.: CAFNT0972-0972-0051-0725127369 TO: Manatt, Phelps & Phillips, LLP 11355 Olympic Boulevard Los Angeles, CA 90064 ATTN: Justin Thompson YOUR REFERENCE: Stone Eagle Association SHORT TERM RATE: PROPERTY ADDRESS: Vacant, Palm Desert, California EFFECTIVE DATE: August 30, 2011, 07:30 A.M. The form of policy or policies of title insurance contemplated by this report is: ALTA Loan Policy (6/17/06) 1. THE ESTATE OR INTEREST IN THE LAND HEREINAFTER DESCRIBED OR REFERRED TO COVERED BY THIS REPORT IS: A FEE as to Parcel(s) Al & B1; AN EASEMENT more fully described below as to Parcel(s) A2, A3, B2, B3, B4. 2. TITLE TO SAID ESTATE OR INTEREST AT THE DATE HEREOF IS VESTED IN: STONE EAGLE ASSOCIATION, a California non-profit mutual benefit corporation 3. THE LAND REFERRED TO IN THIS REPORT IS DESCRIBED AS FOLLOWS: SEE EXHIBIT "A" ATTACHED HERETO AND MADE A PART HEREOF CJ\JH 02/24/2010 1 CLTA Preliminary Report Form - Modified (11117/06) Title No. 10-725127369-E-PP Locate No. CAFNT0972-0972-0051-0725127369 LEGAL DESCRIPTION EXHIBIT "A" THE LAND REFERRED TO HEREIN BELOW IS SITUATED IN THE CITY OF PALM DESERT, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA AND IS DESCRIBED AS FOLLOWS: PARCEL Al: Lot H of Tract No. 30438-2, as shown by map on file in Book 396, Pages 82 through 89, inclusive of Maps, in the Office of the County Recorder of Riverside County, California. PARCEL A2: INTENTIONALLY DELETED PARCEL A3: INTENTIONALLY DELETED PARCEL Bl: Lot B of Tract No. 30438, as shown by map on file in Book 396, Pages 93 through 95, inclusive of Maps, in the office of the County Recorder of Riverside County, California. PARCEL B2: INTENTIONALLY DELETED PARCEL B3: INTENTIONALLY DELETED PARCEL B4: INTENTIONALLY DELETED APN: 652-020-013-9, 652-070-036-5 2 CLTA Preliminary Report Form - Modified (11/17/06) Title No. 10-725127369-E-PP Locate No. CAFUT0972-0972-0051-0725127369 AT THE DATE HEREOF, ITEMS TO BE CONSIDERED AND EXCEPTIONS TO COVERAGE IN ADDITION TO THE PRINTED EXCEPTIONS AND EXCLUSIONS IN SAID POLICY FORM WOULD BE AS FOLLOWS: 1. 2. Property taxes, which are a lien not yet due and payable, including any assessments collected with taxes to be levied for the fiscal year 2011-2012. Property taxes, including any personal property taxes and any assessments collected with taxes, for the fiscal year 2010-2011, Assessor's Parcel Number 652-020-013-9. Code Area Number: 1st Installment: 2nd Installment: Land: Improvements: Exemption: Personal Property: Bill No.: 018-372 $0.00 NO TAXES DUE $0.00 NO TAXES DUE $0.00 $0.00 $0.00 $0.00 0000000 Property taxes, including any personal property taxes and any assessments collected with taxes, for the fiscal year 2010-2011, Assessor's Parcel Number 652-070-036-5. Code Area Number: 1st Installment: 2nd Installment: Land: Improvements: Exemption: Personal Property: Bill No.: 018-209 $0.00 NO TAXES DUE $0.00 NO TAXES DUE $0.00 $0.00 $0.00 $0.00 0000000 The lien of supplemental taxes, if any, assessed pursuant to the provisions of Chapter 3.5 (Commencing with Section 75) of the Revenue and Taxation code of the State of California. Water rights, claims or title to water, whether or not disclosed by the public records. The lack of a legal right of access to and from a public street or highway. Easement(s) for the purpose(s) shown below and rights incidental thereto as granted in a document. Granted to: Southern Pacific Railroad Purpose: Roads Recorded: March 23, 1912, Book 347, Page 127, of Deeds The exact location and extent of said easement is not disclosed of record. CLTA Preliminary Report Form - Modified (11/17/06) ITEMS: (continued) Title No. 10-725127369-E-PP Locate No. CAFNT0972-0972-0051-0725127369 7. Easement(s) for the purpose(s) shown below and rights incidental thereto as granted in a document. Granted to: R. Virginia Black Purpose: Public utilities and roads Recorded: January 22, 1951, Book 2028, Page 211, of Official Records Affects: A portion of said land 8. The effect of a document entitled "Easement Grant Deed and Agreement", dated April 1, 1992, by and between Miller -Richards Limited Partnership, a California Limited Partnership, Marc Glassman, Jerold R. Meints and Deborah A. Meints and Walter Davenport and Erma Davenport, recorded March 29, 1995 as Instrument/File No. 094601, and re -recorded August 2, 1995 as Instrument/File No. 250056, both of Official Records, Riverside County, California. Reference being made to the record for full and further particulars. 9. The effect of a document entitled "City of Palm Desert Ordinance No. 1028 - Approving a Development Agreement Relating to The Crest Golf Club and Residential Village", dated October 24, 2002, by the City of Palm Desert, California, recorded March 11, 2003 as Instrument/File No. 2003- 172463 of Official Records, Riverside County, California. Reference being made to the record for full and further particulars. Matters contained in that certain document entitled "Assignment of Rights Under Development and Improvement Agreements dated August 16, 2004, executed by and between Stone Eagle Development, LLC, a Delaware limited liability company and Valley Independent Bank, a California corporation, recorded August 31, 2004, Instrument No. 2004-0690274, of Official Records. Reference is hereby made to said document for full particulars. Note 1: An amendment to said agreement recorded October 29, 2007, Instrument No. 2007- 0663645, of Official Records. Note 2: A second amendment to said agreement recorded July 24, 2008, Instrument No. 2008- 0404071, of Official Records. 10. The effect of a document entitled "Easement Agreement", dated February 2004, by and between Miller -Richards Limited Partnership, a California limited partnership; and Sabby Jonathan and Wendy Sue Jonathan, Trustees of the Sabby and Wendy Sue Jonathan Inter Vivos Revocable Trust Declaration dated September 7, 1989, recorded February 25, 2004 as Instrument/File No. 2004- 0128833 of Official Records, Riverside County, California. Reference being made to the record for full and further particulars. 11. Intentionally Deleted 12. Intentionally Deleted CLTA Preliminary Report Form -Modified (11/17/06) ITEMS: (continued) Title No. 10-725127369-E-PP Locate No. CAFNT0972-0972-0051-0725127369 13. The recital on the map of Tract No. 30438-2 that Lot H is reserved for common area purposes. 14. Easement(s) for the purpose(s) shown below and rights incidental thereto as delineated or as offered for dedication, on the map of said tract. Purpose: Access road and maintenance purposes Affects: A portion of said land 15. An easement for access road purposes as shown and reserved on the map of said Tract No. 30438- 2, over a portion of Lot H. 16. An easement for access road and maintenance purposes as shown and reserved on the map of said Tract No. 30438-2, over a portion of Lot H. 17. Covenants, conditions and restrictions in the declaration of restrictions but omitting any covenants or restrictions, if any, including, but not limited to those based upon race, color, religion, sex, sexual orientation, familial status, marital status, disability, handicap, national origin, ancestry, or source of income, as set forth in applicable state or federal laws, except to the extent that said covenant or restriction is permitted by applicable law. Recorded: March 16, 2006, Instrument No. 2006-0188878, of Official Records Said covenants, conditions and restrictions provide that a violation thereof shall not defeat the lien of any mortgage or deed of trust made in good faith and for value. 18. Matters contained in that certain document entitled "Agreement for Supplemental Imported Water Supply Charges" dated August 2, 2006, executed by and between Stone Eagle Development, LLC, a Delaware limited liability company and Coachella Valley Water District, a public agency, recorded August 2, 2006, Instrument No. 2006-0567773, of Official Records. Reference is hereby made to said document for full particulars. 19. Covenants, conditions, restrictions and easements, as set forth in Grant Deed recorded July 18, 2006, as Instrument No. 2006-0522446, of Official Records. 20. The recital on the map of Tract No. 30438, that Lot B is reserved for common area purposes. 21. Covenants, conditions and restrictions in the declaration of restrictions but omitting any covenants or restrictions, if any, including, but not limited to those based upon race, color, religion, sex, sexual orientation, familial status, marital status, disability, handicap, national origin, ancestry, or source of income, as set forth in applicable state or federal laws, except to the extent that said covenant or restriction is permitted by applicable law. Recorded: March 16, 2006, Instrument No. 2006-0188878, of Official Records CLTA Preliminary Report Form - Modified (11/17/06) ITEMS: (continued) Title No. 10-725127369-E-PP Locate No. CAFUT0972-0972-0051-0725127369 Said covenants, conditions and restrictions provide that a violation thereof shall not defeat the lien of any mortgage or deed of trust made in good faith and for value. The provisions of said covenants, conditions and restrictions were extended to include the herein described land by an instrument Recorded: March 16, 2006, Instrument No. 2006-0188881, of Official Records Affects: Parcel B 22. Easement(s) for the purpose(s) shown below and rights incidental thereto as granted in a document. Granted to: Ted R. Lennon and Pamela Lennon Purpose: Pedestrian and vehicular travel Recorded: August 10, 2006, Instrument No. 2006-0590332, of Official Records Affects: Parcel B 23. Matters which may be disclosed by an inspection and/or by a correct ALTA/ACSM Land Title Survey of said land that is satisfactory to this Company, and/or by inquiry of the parties in possession thereof. 24. Any easements not disclosed by those public records which impart constructive notice as to matters affecting title to real property and which are not visible and apparent from an inspection of the surface of said land. 25. Any rights of the parties in possession of a portion of, or all of, said land, which rights are not disclosed by the public record. This Company will require, for review, a full and complete copy of any unrecorded agreement, contract, license and/or lease, together with all supplements, assignments and amendments thereto, before issuing any policy of title insurance without excepting this item from coverage. The Company reserves the right to except additional items and/or make additional requirements after reviewing said documents. 6 CLTA Preliminary Report Form -Modified (11/17/06) ITEMS: (continued) Title No. 10-725127369-E-PP Locate No. CAFNT0972-0972-0051-0725127369 26. This Company will require the following documents for review prior to the issuance of any title assurance predicated upon a conveyance or encumbrance by the corporation named below. Corporation: STONE EAGLE ASSOCIATION, a California nonprofit mutual benefit corporation, (a) A copy of the corporation By -Laws and Articles of Incorporation. (b) An original or certified copy of the Resolution authorizing the transaction contemplated herein. (c) If the Articles and/or By -Laws require approval by a "parent" organization, a copy of the Articles and By -Laws of the parent. The right is reserved to add requirements or additional items after completion of such review. END OF ITEMS Note 1. The only deeds affecting said land, which recorded within twenty-four (24) months of the date of this report, as are follows: Grantor: Stone Eagle Development, LLC, a Delaware limited liability company Grantee: Stone Eagle Association, a California non-profit mutual benefit corporation Recorded: May 25, 2010, Instrument No. 2010-0239271, of Official Records Note 2. If a county recorder, title insurance company, escrow company, real estate broker, real estate agent or association provides a copy of a declaration, governing document or deed to any person, California law requires that the document provided shall include a statement regarding any unlawful restrictions. Said statement is to be in at least 14-point bold face type and may be stamped on the first page of any document provided or included as a cover page attached to the requested document. Should a party to this transaction request a copy of any document reported herein that fits this category, the statement is to be included in the manner described. Note 3. Wiring instructions for Fidelity National Title Company, Riverside, CA, are as follows: Receiving Bank: Union Bank of California (800)849-6466 Irvine, CA 92614 ABA Routing No.: 122000496 Credit Account Name: Fidelity National Title Company - Major Accounts Payoff/Admin 11870 Pierce St. Suite 100, Riverside, CA 92505 Credit Account No.: 9100586999 Reference No.: 10-725127369 These wiring instructions are for this specific transaction involving the Title Department of the Newport Beach office of Fidelity National Title Company. These instructions therefore should not be used in other transactions without first verifying the information with our accounting department. It is imperative that the wire text be exactly as indicated. Any extraneous information may cause unnecessary delays in confirming the receipt of funds. CLTA Preliminary Report form - Modified (11/17/06) NOTES: (continued) Title No. 10-725127369-E-PP Locate No. CAFNT0972-0972-0051-0725127369 Note 4. Any documents being executed in conjunction with this transaction must be signed in the presence of an authorized Company employee, an authorized employee of an agent, an authorized employee of the insured lender, or by using Bancsery or other approved third -party service. If the above requirements cannot be met, please call the company at the number provided in this report. CLTA Preliminary Report Form - Modified (11/17/06) NOTES: (continued) Title No. 10-725127369-E-PP Locate No. CAFNT0972-0972-0051-0725127369 OWNER'S DECLARATION The undersigned hereby declares as follows: 1. (Fill in the applicable paragraph and strike the other) a. Declarant ("Owner") is the owner or lessee, as the case may be, of certain premises located at , further described as follows: See Preliminary Report/Commitment No. for full legal description (the "Land"). b. Declarant is the of ("Owner"), which is the owner or lessee, as the case may be, of certain premises located at . further described as follows: See Preliminary Report/Commitment No. for full legal description (the "Land"). 2. (Fill in the applicable paragraph and strike the other.) a. During the period of six months immediately preceding the date of this declaration no work has been done, no surveys or architectural or engineering plans have been prepared, and no materials have been furnished in connection with the erection, equipment, repair, protection or removal of any building or other structure on the Land or in connection with the improvement of the Land in any manner whatsoever. b. During the period of six months immediately preceding the date of this declaration certain work has been done and materials furnished in connection with upon the Land in the approximate total sum of $ but no work whatever remains to be done and no materials remain to be furnished to complete the construction in full compliance with the plans and specifications, nor are there any unpaid bills incurred for labor and materials used in making such improvements or repairs upon the Land, or for the services of architects, surveyors or engineers, except as follows: . Owner, by the undersigned Declarant, agrees to and does hereby indemnify and hold harmless Fidelity National Title Insurance Company against any and all claims arising therefrom. 3. Owner has not previously conveyed the Land; is not a debtor in bankruptcy (and if a partnership, the general partner thereof is not a debtor in bankruptcy); and has not received notice of any pending court action affecting the title to the Land. 4. Except as shown in the above -referenced Preliminary Report/Commitment, there are no unpaid or unsatisfied mortgages, deeds of trust, Uniform Commercial Code financing statements, claims of lien, special assessments, or taxes that constitute a lien against the Land or that affect the Land but have not been recorded in the public records. 5. The Land is currently in use as occupy/occupies the Land; and the following are all of the leases or other occupancy rights affecting the Land: 6. There are no other persons or entities that assert an ownership interest in the Land, nor are there unrecorded easements, claims of easement, or boundary disputes that affect the Land. 7. There are no outstanding options to purchase or rights of first refusal affecting the Land. CLTA Preliminary Report Form - Modified (11/17/06) NOTES: (continued) Title No. 10-725127369-E-PP Locate No.CAFNT0972-0972-0051-0725127369 This declaration is made with the intention that Fidelity National Title Insurance Company (the "Company") and its policy issuing agents will rely upon it in issuing their title insurance policies and endorsements. Owner, by the undersigned Declarant, agrees to indemnify the Company against loss or damage (including attorneys fees, expenses, and costs) incurred by the Company as a result of any untrue statement made herein. I declare under penalty of perjury that the foregoing is true and correct and that this declaration was executed on at Signature: END OF NOTES 10 CLTA Preliminary Report Form - Modified (11/17106) b �N Qp�B• ng�L.i ,A 3 O 1 p= till 8. Pa 3 WA °b s boy k o of ^�7R 3$o�30i Yn2� aa. ;s m>�sy FiA eog N�7 � O a �P +o a' a 0 TRA 0/8-187 0 �s Bs _ wpm w .i T7 6 TRA 018-003 TRA 018-209 O UO ti -I ki8 p D 0, m C'n IUM yr 3 py �. O WUP CN �W� Rb „ TRA *� W 018.209 'v '0 b bbZ ES � $ W ► BI W� N O� � +I � `A�...,.- O Mal I u � O � A I. e C6 LMB.YE L.CI.,O 4TS.w LrtB.bd I STONE ""` z TRAIL- LOTA mdduyd L•de� .y OLD Y � LOT A LOTB EW.d� -�-----�—' ren . r _ TRA 018A71 c.v.c.w. Riw 151 Cf O o 0 0 0 9 � sNp��g p� b N �O V .V• W M LN6.td / Ttd■ ap la being huntaM es • ConYMiMtp l0 OCNe d11 \ hersln described land In rotation to adulnlnp stroete and other lands. The Company don not puAMOs dimensions, distances, boorings,or acreage stated thereon, nor Is It T \ btended to Illueb ib Ie961 building altos or supeneds City or w 4 y County ordinances, I.s. toning and butdlna-cimete. / CIIIcbt l..d fro on concerning use of ar%' Psresl should x be ohMned from lml povemmers apsnGaa. $ �/ a ao co W 2 9d O N 4 �• - ```` ��� cn ° �g N w to O twat S LL m 6 11.1p 1 g Pop 12 0 � c � e o'sor jN< N z� r. >Wo _ y�w PIQ 9 0 x < o l:' a him Ml- <� m N? K U w1! Is SR i 6 ATTACHMENT ONE AMERICAN LAND TITLE ASSOCIATION RESIDENTIAL TITLE INSURANCE POLICY (6-1-87) EXCLUSIONS In addition to the Exceptions in Schedule B, you are not insured against loss, costs, attorneys' fees, and expenses resulting from: 1. Governmental police power, and the existence or violation of any law or government regulation. This includes building and zoning ordinances and also laws and regulations concerning: • land use • improvements on the land • land division • environmental protection This exclusion does not apply to violations or the enforcement of these matters which appear in the public records at policy date. This exclusion does not limit the zoning coverage described in Items 12 and 13 of Covered Title Risks. 2. The right to take the land by condemning it, unless: • a notice of exercising the right appears in the public records on the Policy Date • the taking happened prior to the Policy Date and is binding on you if you bought the land without knowledge of the taking In addition to the Exclusions, you are not insured against loss, costs, attorneys' fees, and the expenses resulting from: 1. Any rights, interests, or claims of parties in possession of the land not shown by the public records. 2. Any easements or liens not shown by the public records. This does not limit the lien coverage to Item 8 of Covered 'title Risks. 3. Title Risks: • that are created, allowed, or agreed to by you • that are known to you, but not to us, on the Policy Date - unless they appeared in the public records • that result in no loss to you • that first affect your title after the Policy Date - this does not limit the labor and material lien coverage in Item 8 of Covered Title Risks 4. Failure to pay value for your title. 5. I.ack of a right: • to any land outside the area specifically described and referred to in Item 3 of Schedule A or • in streets, alleys, or waterways that touch your land This exclusion does not limit the access coverage in Item 5 of Covered Title Risks. 3. Any facts about the land which a correct survey would disclose and which are not shown by the public records. This does not limit the forced removal coverage in Item 12 of Covered Title Risks, 4. Any water rights or claims or title to water in or under the land, whether or not shown by the public records. Attachment One (7/26/10) ATTACHMENT ONE (CONTINUED) CALIFORNIA LAND TITLE ASSOCIATION STANDARD COVERAGE POLICY - 1990 EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of: 1. (a) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. (b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge. 3. Defects, liens, encumbrances, adverse claims, or other matters: (a) whether or not recorded in the public records at Date of Policy, but created, suffered, assumed or agreed to by the insured claimant; (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy, (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy; or (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the insured mortgage or for the estate or interest insured by this policy. Uncnforceability of the lien of the insured mortgage because of the inability or failure of the insured at Date of Policy, or the inability or failure of any subsequent owner of the indebtedness, to comply with the applicable doing business laws of the state in which the land is situated. Invalidity or unenforceability of the lien of the insured mortgage, or claim thereof, which arises out of the transaction evidenced by the insured mortgage and is based upon usury or any consumer credit protection or truth in lending law. Any claim, which arises out of the transaction vesting in the insured the estate or interest insured by this policy or the transaction creating the interest of the insured lender, by reason of the operation of federal bankruptcy, state insolvency or similar creditors' rights laws. SCHEDULE B, PART I EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) which arise by reason of: PART Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the public records. Any facts, rights, interests or claims which are not shown by the public records but which could be ascertained by an inspection of the land or which may be asserted by persons in possession thereof. Easements, liens or encumbrances, or claims thereof, not shown by the public records. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the public records. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts; authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the public records. Any lien or right to a lien for services, labor or material not shown by the public records. Attachment One (7/2G/ 10) ATTACHMENT ONE (CONTINUED) FORMERLY AMERICAN LAND TITLE ASSOCIATION LOAN POLICY (10-17-92) WITH A.L.T.A. ENDORSEMENT -FORM 1 COVERAGE EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of: 1. (a) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating to (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. (b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge. 3. Defects, liens, encumbrances, adverse claims, or other matters: (a) created, suffered, assumed or agreed to by the insured claimant, (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the -Company by the insured claimant prior to the date the insured claimant became an insured under this policy; (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy (except to the extent that this policy insures the priority of the lien of the insured mortgage over any statutory lien for services, labor or material or to the extent insurance is afforded herein as to assessments for street improvements under construction or completed at Date of Policy); or (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the insured mortgage, 4. Unenforceability of the lien of the insured mortgage because of the inability or failure of the insured at Date of Policy, or the inability or failure of any subsequent owner of the indebtedness, to comply with applicable doing business laws of the state in which the land is situated. 5. Invalidity or unenforceability of the lien of the insured mortgage, or claim thereof, which arises out of the transaction evidenced by the insured mortgage and is based upon usury or any consumer credit protection or truth in lending law. 6. Any statutory lien for services, labor or materials (or the claim of priority of any statutory lien for services, labor or materials over the lien of the insured mortgage) arising from an improvement or work related to the land which is contracted for and commenced subsequent to Date of Policy and is not financed in whole or in part by proceeds of the indebtedness secured by the insured mortgage which at Date of Policy the insured has advanced or is obligated to advance. 7. Any claim, which arises out of the transaction creating the interest of the mortgagee insured by this policy, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that is based on: (i) the transaction creating the interest of the insured mortgagee being deemed a fraudulent conveyance or fraudulent transfer, or (ii) the subordination of the interest of the insured mortgagee as a result of the application of the doctrine of equitable subordination; or (iii) the transaction creating the interest of the insured mortgagee being deemed a preferential transfer except where the preferential transfer results from the failure: (a) to timely record the instrument of transfer; or (b) of such recordation to impart notice to a purchaser for value or a judgement or lien creditor. The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage. EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) which arise by reason of: Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the public records. Any facts, rights, interests or claims which are not shown by the public records but which could be ascertained by an inspection of the land or which may be asserted by persons in possession thereof. Easements, liens or encumbrances, or claims thereof, not shown by the public records. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the public records. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b) or (c) are shown by the public records. Any lien or right to a lien for services, labor or material not shown by the public records. Attachment One (7/26/10) ATTACHMENT ONE (CONTINUED) 2006 AMERICAN LAND TITLE ASSOCIATION LOAN POLICY (06-17-06) EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy, and the Company will not pay loss or damage, costs, attorneys' fees, or expenses that arise by reason of: 1. (a) Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to (1) the occupancy, use, or enjoyment of the Land, (ii) the character, dimensions, or location of any improvement erected on the Land, (iii) the subdivision of land; or (iv) environmental protection; or the effect of any violation of these laws, ordinances, or governmental regulations. This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5. (b) Any governmental police power. This Exclusion I (b) does not modify or limit the coverage provided under Covered Risk 6. 2. Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8. 3. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed, or agreed to by the Insured Claimant; (b) not Known to the Company, not recorded in the Public Records al Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; (c) resulting in no loss or damage to the Insured Claimant; (d) attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risk 11, 13, or 14); or (e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Instrreci Mortgage. 4. Unenforceability of the lien of the Insured Mortgage because of the inability or failure of an Insured to comply with applicable doing -business laws of the state where the Land is situated. 5. Invalidity or unenforceability in whole or in part of the lien of the Insured Mortgage that arises out of the transaction evidenced by the Insured Mortgage and is based upon usury or any consumer credit protection or tnrth-in-lending law. 6. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that the transaction creating the lien of the Insured Mortgage, is (a) a fraudulent conveyance or fraudulent transfer, or (b) a preferential transfer for any reason not stated in Covered Risk 13(b) of this policy. 7. Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching between Date of Policy and the date of recording of the Insured Mortgage in the Public Records. This Exclusion does not modify or limit the coverage provided under Covered Risk I I (b). The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage: EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) that arise by reason of: (a) 'I'axes or assessments that are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the Public Records; (b) proceedings by a public agency that may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the Public Records. Any facts, rights, interests, or claims that are not shown by the Public Records but that could be ascertained by an inspection of the Land or that may be asserted by persons in possession of the Land. Easements, liens or encumbrances, or claims thereof, not shown by the Public Records. Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land and not shown by the Public Records. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the Public Records. Any lien or right to a lien for services, labor or material not shown by the Public Records. Attachment One (7/26110) ATTACHMENT ONE (CONTINUED) FORMERLY AMERICAN LAND TITLE ASSOCIATION OWNER'S POLICY (10-17-92) EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of: l . (a) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating to (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. (b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge. Defects, liens, encumbrances, adverse claims, or other mattes: (a) created, suffered, assumed or agreed to by the insured claimant; (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy, (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy, or (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the estate or interest insured by this policy. Any claim, which arises out of the transaction vesting in the insured the estate or interest insured by this policy, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that is based on: (i) the transaction creating the estate or interest insured by this policy being deemed a fraudulent conveyance or fraudulent transfer; or (ii) the transaction creating the estate or interest insured by this policy being deemed a preferential transfer except where the preferential transfer results from the failure: (a) to timely record the instrument of transfer; or (b) of such recordation to impart notice to a purchaser for value or a judgement or lien creditor. The above policy torn may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage: EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) which arise by reason of: Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the public records. Any facts, rights, interests or claims which are not shown by the public records but which could be ascertained by an inspection of the land or which may be asserted by persons in possession thereof. Easements, liens or encumbrances, or claims thereof, not shown by the public records. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the public records. (a) Unpatented mining claims., (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted tinder (a), (b) or (c) are shown by the public records. Any lien or right to a lien for services, labor or material not shown by the public records. Attachment One (7126,110) ATTACHMENT ONE (CONTINUED) 2006 AMERICAN LAND TITLE ASSOCIATION OWNER'S POLICY (06-17-06) EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy, and the Company will not pay loss or damage, costs, attorneys' fees, or expenses that arise by reason of: l . (a) Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to (i) the occupancy, use, or en'joyment of the Land; (ii) the character, dimensions, or location of any improvement erected on the Land; (iii) the subdivision of land; or (iv) environmental protection; or the effect of any violation of these laws, ordinances, or governmental regulations. This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5. (b) Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 6. 2. Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8. 3. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed, or agreed to by the Insured Claimant; (b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; (e) resulting in no loss or damage to the Insured Claimant, (d) attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risk 9 and 10); or (e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Title. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that the transaction vesting the Title as shown in Schedule A, is (a) a fraudulent conveyance or fraudulent transfer; or (b) a preferential transfer for any reason not stated in Covered Risk 9 of this policy. Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching between Date of Policy and the date of recording of the deed or other instrument of transfer in the Public Records that vests Title as shown in Schedule A. The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage: EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) that arise by reason of. (a) Taxes or assessments that are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the Public Records; (b) proceedings by a public agency that may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the Public Records. Any facts, rights, interests, or claims that are not shown by the Public Records but that could be ascertained by an inspection of the Land or that may be asserted by persons in possession of the Land. Easements, liens or encumbrances, or claims thereof, not shown by the Public Records. Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land and not shown by the Public Records. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b) or (c) are shown by the Public Records. Any lien or right to a lien for services, labor or material not shown by the Public Records, Attachment One (7/26/10) ATTACHMENT ONE (CONTINUED) CLTA HOMEOWNER'S POLICY OF TITLE INSURANCE (10-22-03) ALTA HOMEOWNER'S POLICY OF TITLE INSURANCE (10-22-03) EXCLUSIONS In addition to the Exceptions in Schedule B, You are not insured against loss, costs, attorneys' fees, and expenses resulting from: l . Governmental police power, and the existence or violation of any law or government regulation. 'This includes ordinances, laws and regulations concerning: a. building b. zoning c. Land use d. improvements on Land e. Land division f, environmental protection This Exclusion does not apply to violations or the enforcement of these matters if notice of the violation or enforcement appears in the Public Records at the Policy Date. 'Phis hxclusion does not limit the coverage described in Covered Risk 14, 15, 16, 17 or 24. 2. The failure of Your existing structures, or any part of them, to be constructed in accordance with applicable building codes. This Exclusion does not apply to violations of building codes if notice of the violation appears in the Public Records at the Policy Date. 3. The right to take the Land by condemning it, unless: a. notice of exercising the right appears in the Public Records at the Policy Date; or b. the taking happened before the Policy Date and is binding on You if You bought the land without Knowing of the taking. 4. Risks: a. that are created, allowed, or agreed to by You, whether or not they appear in the Public Records; b. that are Known to You at the Policy Date, but not to Us, unless they appear in the Public Records at the Policy Date-, c. that result in no loss to You; or d. that first occur after the Policy Date - this does not limit the coverage described in Covered Risk 7, 8A, 22, 23, 24 or 25. 5. Failure to pay value for Your Title. 6. Lack of a right: a. to any Land outside the area specifically described and referred to in paragraph 3 of Schedule A; and b. in streets, alleys, or waterways that touch the Land. This Exclusion does not limit the coverage described in Covered Risk I 1 or 18. LIMITATIONS ON COVERED RISKS Your insurance for the following Covered Risks is limited on the Owner's Coverage Statement as follows: For Covered Risk 14, 15, 16 and 18, Your Deductible Amount and Our Maximum Dollar Limit of Liability shown in Schedule A. The deductible amounts and maximum dollar limits shown on Schedule A are as follows: Your Deductible Amount Our Maximum Dollar Limit of Liabili Covered Risk 14: 1.00% of Policy Amount $ 10,000.00 or $ 2,500.00 (whichever is less) Covered Risk 15: 1.00% of Policy Amount $ 25,000.00 or $ 5,000.00 (whichever is less) Covered Risk 16: 1.00% of Policy Amount $ 25,000.00 or $ 5,000.00 (whichever is less) Covered Risk 18: 100% of Policy Amount $ 5,000.00 or $ 2,500.00 (whichever is less) AtUtchment One (7/26110) ATTACHMENT ONE (CONTINUED) CLTA HOMEOWNER'S POLICY OF TITLE INSURANCE (02-03-10) ALTA HOMEOWNER'S POLICY OF TITLE INSURANCE (02-03-10) EXCLUSIONS In addition to the Exceptions in Schedule B, You are not insured against loss, costs, attorneys fees, and expenses resulting from: l . Governmental police power, and the existence or violation of those portions of any law or government regulation concerning: a. building; b. zoning, c. land use; d. improvements on the Land; e. land division; and f. environmental protection. This Exclusion does not limit the coverage described in Covered Risk 8.a., 14, 15, 16, 18, 19, 20, 23 or 27. 2. The failure of Your existing structures, or any part of them, to be constricted in accordance with applicable building codes. This Exclusion does not limit the coverage described in Covered Risk 14 or 15. 3. The right to take the Land by condemning it. This Exclusion does not limit the coverage described in Covered Risk 17. 4. Risks: a. that are created, allowed, or agreed to by You, whether or not they are recorded in the Public Records; b. that are Known to You at the Policy Date, but not to Us, unless they are recorded in the Public Records at the Policy Date; c. that result in no loss to You; or d. that first occur after the Policy Date - this does not limit the coverage described in Covered Risk 7, 8.e., 25, 26, 27 or 28. 5. Failure to pay value for Your Title. 6. Lack of a right: a. to any land outside the area specifically described and referred to in paragraph 3 of Schedule A; and b. in streets, alleys, or waterways that touch the Land. This Exclusion does not limit the coverage described in Covered Risk 11 or 21. 7. The transfer of the Title to You is invalid as a preferential transfer or as a fraudulent transfer or conveyance under federal bankruptcy, state insolvency, or similar creditors' rights laws. LIMITATIONS ON COVERED RISKS Your insurance for the following Covered Risks is limited on the Owner's Coverage Statement as follows: • For Covered Risk 16, 18, 19 and 21, Your Deductible Amount and Our Maximum Dollar Limit of Liability shown in Schedule A. The deductible amounts and maximum dollar limits shown on Schedule A are as follows: Covered Risk 16 Covered Risk 18 Covered Risk 19: Covered Risk 21 Your Deductible Amount 1.00% of Policy Amount Shown in Schedule A or 1500.00 (whichever is less) 1.00% of Policy Amount Shown in Schedule A or $ 5,000.00 (whichever is less) 1.00% of Policy Amount Shown in Schedule A or $ 5,000.00 (whichever is less) 1.00% of Policy Amount Shown in Schedule A or $ 2,500.00 (whichever is less) Our Maximum Dollar Limit of Liabili $ 10,000.00 $ 25,000.00 $ 25,000.00 $ 5,000.00 Attachment One (7/26110) ATTACHMENT ONE (CONTINUED) ALTA EXPANDED COVERAGE RESIDENTIAL LOAN POLICY (10113101) EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of: I . (a) Any law, ordinance or governmental regulation (including but not limited to zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating to (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any improvements now or hereafter erected on the Land; (iii) a separation in ownership or a change in the dimensions or areas of the Land or any parcel of which the Land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the Land has been recorded in the Public Records at Date of Policy. This exclusion does not limit the coverage provided under Covered Risks 12, 13, 14, and 16 of this policy. (b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the Land has been recorded in the Public Records at Date of Policy. This exclusion does not limit the coverage provided under Covered Risks 12, 13, 14, and 16 of this policy. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the Public Records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which R ld be binding on the rights of a purchaser for value without wledge:3. Defectsliensenumbrances,erse claims or other matters: (a) created, suffered, assumed or agreed to by the Insured Claimant; (b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in whiting to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; (c) resulting in no loss damage to the Insured Claimant; (d) attaching or created subsequent to Date of Policy (this paragraph does not limit the coverage provided under Covered Risks 8, 16, 18, 19, 20, 21, 22, 23, 24, 25 and 26); or (e) resulting in loss or damage which would not have been sustained if the Insured Claimant had paid value for the Insured Mortgage. 4. Unenforecability of the lien of the Insured Mortgage because of the inability or failure of the Insured at Date of Policy, or the inability or failure of any subsequent owner of the indebtedness, to comply with applicable doing business laws of the state in which the Land is situated. 5. Invalidity or unenforceability of the lien of the Insured Mortgage, or claim thereof, which arises out of the transaction evidenced by the Insured Mortgage and is based upon usury, except as provided in Covered Risk 27, or any consumer credit protection or truth in lending law. 6. Real property taxes or assessments of any governmental authority which become a lien on the Land subsequent to Date of Policy. This exclusion does not limit the coverage provided under Covered Risks 7, 8(e) and 26. 7. Any claim of invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage as to advances or modifications made after the Insured has Knowledge that the vestee shown in Schedule A is no longer the owner of the estate or interest covered by this policy. This exclusion does not limit the coverage provided in Covered Risk 8. 8. Lack of priority of the lien of the Insured Mortgage as to each and every advance made after Date of Policy, and all interest charged thereon, over liens, encumbrances and other matters affecting the title, the existence of which are Known to the Insured at: (a) The time of the advance; or (b) The time a modification is made to the terms of the Insured Mortgage which changes the rate of interest charged, if the rate of interest is greater as a result of the modification than it would have been before the modification. This exclusion does not limit the coverage provided in Covered Risk 8. 9. The failure of the residential stricture, or any portion thereof to have been constructed before, on or after Date of Policy in accordance with applicable building codes. This exclusion does not apply to violations of building codes if notice of the violation appears in the Public Records at Date of Policy. Attachment One (7/26/ 10) ATTACHMENT ONE (CONTINUED) ALTA EXPANDED COVERAGE RESIDENTIAL LOAN POLICY (07/26/10) EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of 1. (a) Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to (i) the occupancy, use, or enjoyment of the Land; (ii) the character, dimensions, or location of any improvement erected on the Land; (iii) the subdivision of land; or (iv) environmental protection; or the effect of any violation of these laws, ordinances, or governmental regulations. This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5, 6, 13(c), 13(d), 14 or 16. (b) Any govenunental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 5, 6, 13(c), 13(d), 14 or 16. 2. Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8. 3. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed, or agreed to by the Insured Claimant; (b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy, (c) resulting in no loss or damage to the Insured Claimant; (d) attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risk 11, 16, 17, 18, 19, 20, 21, 22, 23, 24, 27 or 28); or (e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Insured Mortgage. 4. Unenforceability of the lien of the Insured Mortgage because of the inability or failure of an Insured to comply with applicable doing -business laws of the state where the Land is situated. 5. Invalidity or unenforceability in whole or in part of the lien of the Insured Mortgage that arises out of the transaction evidenced by the Insured Mortgage and is based upon usury, or any consumer credit protection or truth -in -lending law. This Exclusion does not modify or limit the coverage provided in Covered Risk 26. 6. Any claim of invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage as to Advances or modifications made after the Insured has Knowledge that the vestee shown in Schedule A is no longer the owner of the estate or interest covered by this policy. This Exclusion does not modify or limit the coverage provided in Covered Risk 11. 7. Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching subsequent to Date of Policy. This Exclusion does not modify or limit the coverage provided in Covered Risk 1 I (b) or 25. 8. The failure of the residential structure, or any portion of it, to have been constructed before, on or after Date of Policy in accordance with applicable building codes. This Fxclusion does not modify or limit the coverage provided in Covered Risk 5 or 6. 9. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that the transaction creating the lien of the Insured Mortgage, is (a) a fraudulent conveyance or fraudulent transfer, or (b) a preferential transfer for any reason not stated in Covered Risk 27(b) of this policy. Attachment One (7/26/10) Notice You may be entitled to receive a $20.00 discount on escrow services if you purchased, soli or refinanced residential property in California between May 19, 1995 and November 1, 2002. If you had more than one qualifying transaction, you may be entitled to multiple discounts. If your previous transaction involved the same property that is the subject of your current transaction, you do not have to do anything; the Company will provide the discount, provided you are paying for escrow or title services in this transaction. If your previous transaction involved property different from the property that is subject of your current transaction, you must - prior to the close of the current transaction - inform the Company of the earlier transaction, provide the address of the property involved in the previous transaction, and the date or approximate date that the escrow closed to be eligible for the discount. Unless you inform the Company of the prior transaction on property that is not the subject of this transaction, the Company has no obligation to conduct an investigation to determine if you qualify for a discount. If you provide the Company information concerning a prior transaction, the Company is required to determine if you qualify for a discount which is subject to other terms and conditions. Effective through November 1, 2014 (privacy)(05-08) Page 1 of 2 Fidelity National Financial, Inc. Privacy Statement Effective Date: 5/1/2008 Fidelity National Financial, Inc. and its subsidiaries ("FNF") respect the privacy and security of your non-public personal information ("Personal Information") and protecting your Personal Information is one of our top priorities. This Privacy Statement explains FNF's privacy practices, including how we use the Personal Information we receive from you and from other specified sources, and to whom it may be disclosed. FNF follows the privacy practices described in this Privacy Statement and, depending on the business performed, FNF companies may share information as described herein. Personal Information Collected We may collect Personal Information about you from the following sources: • Information we receive from you on applications or other forms, such as your name, address, social security number, tax identification number, asset information, and income information; • Information we receive from you through our Internet websites, such as your name, address, email address, Internet Protocol address, the website links you used to get to our websites, and your activity while using or reviewing our websites; • Information about your transactions with or services performed by us, our affiliates, or others, such as information concerning your policy, premiums, payment history, information about your home or other real property, information from lenders and other third parties involved in such transaction, account balances, and credit card information; and • Information we receive from consumer or other reporting agencies and publicly recorded documents. Disclosure of Personal Information We may provide your Personal Information (excluding information we receive from consumer or other credit reporting agencies) to various individuals and companies, as permitted by law, without obtaining your prior authorization. Such laws do not allow consumers to restrict these disclosures. Disclosures may include, without limitation, the following: • To insurance agents, brokers, representatives, support organizations, or others to provide you with services you have requested, and to enable us to detect or prevent criminal activity, fraud, material misrepresentation, or nondisclosure in connection with an insurance transaction; • To third -party contractors or service providers for the purpose of determining your eligibility for an insurance benefit or payment and/or providing you with services you have requested; • To an insurance regulatory authority, or a law enforcement or other governmental authority, in a civil action, in connection with a subpoena or a governmental investigation; • To companies that perform marketing services on our behalf or to other financial institutions with which we have joint marketing agreements and/or • To lenders, lien holders, judgment creditors, or other parties claiming an encumbrance or an interest in title whose claim or interest must be determined, settled, paid or released prior to a title or escrow closing. We may also disclose your Personal Information to others when we believe, in good faith, that such disclosure is reasonably necessary to comply with the law or to protect the safety of our customers, employees, or property and/or to comply with a judicial proceeding, court order or legal process. (privacy) Page 2 of 2 Effective Date: 5/1/2008 Disclosure to Affiliated Companies -We are permitted bylaw to share your name, address and facts about your transaction with other FNF companies, such as insurance companies, agents, and other real estate service providers to provide you with services you have requested, for marketing or product development research, or to market products or services to you. We do not, however, disclose information we collect from consumer or credit reporting agencies with our affiliates or others without your consent, in conformity with applicable law, unless such disclosure is otherwise permitted by law. Disclosure to Nonaffiliated Third Parties - We do not disclose Personal Information about our customers or former customers to nonaffiliated third parties, except as outlined herein or as otherwise permitted by law. Confidentiality and Security of Personal Information We restrict access to Personal Information about you to those employees who need to know that information to provide products or services to you. We maintain physical, electronic, and procedural safeguards that comply with federal regulations to guard Personal Information. Access To Personal Information/ Requests for Correction, Amendment, or Deletion of Personal Information As required by applicable law, we will afford you the right to access your Personal Information, under certain circumstances to find out to whom your Personal Information has been disclosed, and request correction or deletion of your Personal Information. However, FNF's current o(�licy is to maintain customers' Personal Information for no less than your state's required record retention requirements for the purpose of handling future coverage claims. For your protection, all requests made under this section must be in writing and must include Your notarized signature to establish your identity. Where permitted by law, we may charge a reasonable fee to cover the costs incurred in responding to such requests. Please send requests to: Chief Privacy Officer Fidelity National Financial, Inc. 601 Riverside Avenue Jacksonville, FL 32204 Changes to this Privacy Statement This Privacy Statement may be amended from time to time consistent with applicable privacy laws. When we amend this Privacy Statement, we will post a notice of such changes on our website. The effective date of this Privacy. Statement, as stated above, indicates the last time this Privacy Statement was revised or materially changed. Notice of Available Discounts Pursuant to Section 2355.3 in Title 10 of the California Code of Regulations Fidelity National Financial, Inc. and its subsidiaries ("FNF") must deliver a notice of each discount available under our current rate filing along with the delivery of escrow instructions, a preliminary report or commitment. Please be aware that the provision of this notice does not constitute a waiver of the consumer's right to be charged the filed rate. As such, your transaction may not qualify for the below discounts. You are encouraged to discuss the applicability of one or more of the below discounts with a Company representative. These discounts are generally described below; consult the rate manual for a full description of the terms, conditions and requirements for such discount. These discounts only apply to transactions involving services rendered by the FNF Family of Companies. This notice only applies to transactions involving property improved with a one -to -four family residential dwelling. FNF Underwritten Title Companies FNF Underwriter FNTC — Fidelity National Title Company FNTIC — Fidelity National Title Insurance Company FNTCCA — Fidelity National Title Company of California Available Discounts CREDIT FOR PRELIMINARY REPORTS AND/OR COMMITMENTS ON SUBSEQUENT POLICIES (FNTIC) Where no major change in the title has occurred since the issuance of the original report or commitment, the order may be reopened within 12 or 36 months and all or a portion of the charge previously paid for the report or commitment may be credited on a subsequent policy charge. FEE REDUCTION SETTLEMENT PROGRAM (FNTC, FNTCCA and FNTIC) Eligible customers shall receive a $20.00 reduction in their title and/or escrow fees charged by the Company for each eligible transaction in accordance with the terms of the Final Judgments entered in The People of the State of California etal v. Fidelity National Title Insurance Company et al., Sacramento Superior Court Case No. 99AS02793, and related cases. DISASTER LOANS (FNTIC) The charge for a Lender's Policy (Standard or Extended coverage) covering the financing or refinancing by an owner of record, within 24 months of the date of a declaration of a disaster area by the government of the United States or the State of California on any land located in said area, which was partially or totally destroyed in the disaster, will be 50% of the appropriate title insurance rate. CHURCHES OR CHARITABLE NON-PROFIT ORGANIZATIONS (FNTIC) On properties used as a church or for charitable purposes within the scope of the normal activities of such entities, provided said charge is normally the church's obligation the charge for an owner's policy shall be 50% or 70% of the appropriate title insurance rate, depending on the type of coverage selected. The charge for a lender's policy shall be 32% or 50% of the appropriate title insurance rate, depending on the type of coverage selected. CA Discount Notice (notdisc-fnt) Effective Date: 71112010 Exhibit E Map of the Natural Condition of the Property 300081746.2 -30- mm wmhwmw - 7wa Ms i r r u = J f Qa ❑O w �oon44b®ao®o®�,®a� Exhibit F Annual Inspection Report Form CITY OF PALM DESERT PART I — EASEMENT MANAGEMENT ACTIVITIES (All actions shall be undertaken at the discretion of the City, as deemed necessary, a minimum of four times per year.) PART I — EASEMENT MANAGEMENT ACTIVITIES Time period covering to dd/mm/yy dd/mm/yy 1. CHECK FOR USE OF EASEMENT AREA INCONSISTENT WITH THE TERMS OF THE CONSERVATION EASEMENT (See Part II): Date(s) Performed: Corrective Action/Response Taken: Additional Notes: 300081746.2 -3 1 - PART II PROHIBITED ACTIVITIES NOT 1. Supplemental Watering OBSERVED (Circle One) OBSERVED N/A (If observed, describe corrective action or response taken) NOT 2. Use of herbicides, pesticides, OBSERVED biocides, fertilizers, or other agricultural chemicals, except as vector control or to control invasive plant species. OBSERVED N/A (If observed, describe corrective action or response taken) NOT 3. Fire Protection activities. OBSERVED OBSERVED N/A (If observed, describe corrective action or response taken) NOT 4. Off -Road Vehicle use. OBSERVED OBSERVED N/A (If observed, describe corrective action or response taken) 300081746.2 -32- NOT 5. Grazing or agriculture. OBSERVED OBSERVED N/A (If observed, describe corrective action or response taken) NOT 6. Horseback riding, bicycling, OBSERVED hunting or fishing. OBSERVED N/A (If observed, describe corrective action or response taken) NOT 7. Construction or placement of any OBSERVED building, billboard or sign. OBSERVED N/A (If observed, describe corrective action or response taken) NOT 8. Dumping or accumulation of trash. OBSERVED OBSERVED N/A (If observed, describe corrective action or response taken) NOT 9. Planting of non-native plants. OBSERVED OBSERVED N/A (If observed, describe corrective action or response taken) NOT 10. Excavation or extraction of OBSERVED minerals/soil. OBSERVED N/A (If observed, describe corrective action or response taken) 300081746.2 -33- NOT 11. Recent alterations of OBSERVED OBSERVED N/A topography/grading. (If observed, describe corrective action or response taken) NOT 12. Recently removed or destroyed OBSERVED OBSERVED N/A trees or shrubs. (If observed, describe corrective action or response taken) NOT 13. Activities detrimental to water OBSERVED OBSERVED N/A quality. (If observed, describe corrective action or response taken) Additional Notes: 300081746.2 -34-