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HomeMy WebLinkAboutBEACON BAY LEASE LOT 22_03_INSURANCE DOCUMENTSI lill 111 1111111111111 lill III III Beacon Bay Lease Lot 22 03_INSURANCE DOCUMENTS CITY OF NEWPORT BEACH City Manager's Office (949)644-3002 April 4, 2007 Chad and Christina Steelberg P.O. Box 8129 Newport Beach, CA 92660 RE: Notice of Rent Adjustment for 22 Beacon Bay Dear Mr. and Mrs. Steelberg: As per section 3.B.(4)(a) of your land lease agreement, effective May 19, 2007, your land lease payment per month will increase by $988.90. Your new monthly rent for this property will be $4,863.90. We will prorate the month -of May 2007 as follows: • May 1 - 19, 2007 = $2,454.17 (old rate) • May 20 - 30, 2007 = 1,783.43 (new rate) Total $4,237.60 Beginning June 2007, you will be billed at the new rate of $4,863.90 per month. If you have any questions, please contact Shirley Oborny at 949- 644-3002. Sincerely, "v Dave Kiff Assistant City Manager cc: Seanne Carney, Fiscal Specialist City Hall • 3300 Newport Boulevard • Post Office Box 1768 Newport Beach California 92658-8915 • www.city.newport-beach.ca.us Rent Increase Calculations for Lot 22 Beacon Bay Calculations are based on section 33.(4)(a) of 7M194lease. Lease Execution Date: Date of Rental Adjustment: Date 90 days prior to Rental Adjustment: CPI at time of Execution Date: CPI avail. 90 days prior to Rental Adjustment: Increase/Decrease In CPI: % of Increase/Decrease: Multiply current rent by % of increase/Decrease: Add or Decrease above total to determine new rent: 5/19/2000 5/19/2007 2/18/2007 171.1 (5/19/00 - attached) 214.76 (2/18/07 - attached) 43.66 25,52% increase (43.66 divided by 171.1) $3,875 X 25.52% _ $988.90 $3,875.00 + $988.90 = $4,863.90 (per lease, can never be increased/decreased by greater than 40%) Prorated rent for May, 2007 Old rent $ = 3,875.00 $129.17 per day May 1 - 19, 2007 = $2,454.17 Increased rent = $4,863.90 $162.13 per day May 19 - 30, 2007 = $1,783.43 Total: $4,237.60 4/3/2007 This card is available on the Internet on the day of publication at http:llwww.bls.gov/ro9/pachisthtm. Twenty year historical files for any of the indexes listed below are also available on the WEB by going to http:/Iwww.bls.gov/ro9/Mostrequ.htm. CONSUMER PRICE INDEXES PACIFIC CITIES AND U. S. CITY AVERAGE FEBRUARY 2007 ALL ITEMS INDEXES 11982-84=100 unless otherwise noted) All Urban Consumers (CPI-U) Urban Wage Earners and Clerical Workers (CPI-W) Percent Chan a Percent Change MONTHLY DATA Indexes Year 1 Month Indexes Year 1 Month endin ending endin end' Feb Jan. Feb. Jan. Feb. Feb. Feb Jan. Feb. Jan. Feb. Feb. 2006 2007 2007 2007 2007 20D7 2006 2007 2007 2007 2007 2007 198.7 202A16 203.499 2.1 2A 0.5 1942 197.559 198.544 1.8 2.2 0.5 U. S. City Average ................................ (1967=100)..................................... 595.2 606.348 609.594 - - - 578.6 588.467 591A03 - - - Los Angeles -Riverside -Orange Co...... 207.5 212.584 214.760 3.2 3.5 1.0 199.9 204A98 206.632 3.1 3.4 1.0 (1967=100)..................................... 613.2 628.068 634.496 - - - 590.8 604.353 610.660 - - - West ..................................................... 202.7 2D7.790 208.995 3.0 3.1 0.6 197.2 201.946 203.036 2.9 3.0 0.5 (Dec. 1977 = 100) .......................... 327.7 335.882 337.828 - - - 317.4 324.920 326.674 - - - West -A' .............................................. 205.7 211.102 212.549 3.1 3.3 0.7 198.6 203.537 204.885 3.0 3.2 0.7 (Dec. 1977 = 100) ................... :...... 335.5 344.231 346.590 - - - 321.5 329A86 331.670 - - - West-B/C"(Dec. 1996=100) .............. 123.7 126.244 126.805 2.7 2.5 0.4 123.1 125.593 126.161 2.7 2.5 0.5 All Urban Consumers (CPI-U) Urban Wage Earners and Clerical Workers (GPI-W) Percent Change Percent Chan e BI-MONTHLY DATA Indexes Year 2 Months Indexes Year 2 Months ending ending endin ending Feb. Dec. Feb. Dec. Feb. Feb. Feb. Dec. Feb. Dec. Feb. Feb. 2006 2006 2007 2006 2007 2007 2006 I 2006 2007 2006 2007 2007 San Francisco-OaklandSan Jose........ 207.1 210A 213.688 3.4 3.2 1.6 202.5 205.6 208.803 3.2 3.1 1.6 (1967=100)..................................... 636.6 646.7 656.937 - - - 616.6 626.1 635.823 - - - Seat(le-Tacoma-Bremerton.................. 203.6 209.3 211.704 4.2 4.0 1.1 198.9 204.3 205.7461 4.2 3.9 0.7 (1967=100)..................................... 620.7 638.1 645.356 - -1 587.3 606.0 610.243 - - A= 1,500.000 population and over -BIG= less than 1,500,000 population Dash (-)=Nut Available. Release date March 16, 2007. The next monthly releases are scheduled to be issued on April 17, 2007. The next bi-monthly releases are scheduled for May 15, 2007. Anchorage (907) 271-2770 Honolulu (808) 541-2808 Los Angeles (310) 235-6884 Portland (503) 326-5818 San Francisco (415) 975.4350 Phoenix (480) 503-9075 San Diego (619) 557-6538 Seattle (206) 553-0645 contact us atBLSinfoSF0BLS.G0V or (4161976-4350. • also on Jelickapac0)e Citl US. City.A, )CMontWy^' or D �'D]sMANDservire Tea L7)n a Copy, caa d15-975.4567. veraio� 1 I receive a copY of Apn7 2000 enter 9104, March 567' ., eD asked for a doeR+.)mmnber, enttr _ 99, enter 9331,October7999, eDter913q September 1999, ennter 910February Februmonths are ��eente 9J6) J Flo �orenter901, CONSUMER PRICE INDEXES b �Y zo95, enter 9301, & Y1999,eater9lD7,et- PdCIFi C CITIES AND U.S. CITY AVER HOM MY nm HAY. 1999 U. S. City ROCCO,................ 166.2 (1967.300).......... 266.2 Los Aagolas-RiPoicida-Ormge co.. 266.2 (196]v100).................. 490.9 Neat ..... (DOC. •1977 •. 100)........... 272.7 Heat - A+........._ (➢oc. 1977 100) ...... 169.8 west - 8/M (Dee. 1996.100)...... 204.8 HZ-Hn)rrrrr APR. 1999 San Psancieco-Oa)claad-San dose 1/.... 1.72.2 (1967a100).............. 529.4 Seattle- Bremerton ••••••- (1967=1�p0)........ 3/.......... 172.R 525.0 1/ she s m , 497 J Yzaadvco-osk3vad-8m ave and eaatele-Yee . Oc[. and Dsc). the Cart CPZ.Al1 Stet' a+a-Brmeitm iadezes !oz the sm Prmeiaro evd 6me u an PaDlisbut bi-asvthly oC evm voaehe �81za rloams A . S.SOD.0o0 t}e mom will b. Sez Java 2a0D sad za3eaavd On (rob. April. Jme. Tn9. popalatim and aveY.++B/C . ieae ttm 1.500.000 m '7^lY 18. 200D. Releave date dma 24. 2000, sort zelaava date JaZY 18, 2000. Poi IDoie Saio PIt 2atiaj1 �� (-) .Pot TvaylaLla (415) 975-435D. e 8oaoluln(808) 541-2808 Loa Angeles (310) 235-6884 VoCt2aml (503) 326-2081 Ran Diego (619) 557-6538 SOo Prmeiveo (415) 975-4350 Seattle (206) 553-0645 UR9AH NAM EMMnas Rtm CLERICAL AORRffitg 1xOMMS ALLIUMSINDEXES (1982-84-100 Dnies6 otherwise Doted) MAY 2000 ALL URRM MIM,,XUR8 P8RCMM cHRUOR 1tmRE8S Year 1 Hov1:D APR. HAY dinq APR N9 2000 2000 H 2000 2000 ' H 2000 ( 1 171.2 171.3 3.0 3.1 O.1 512_9 523.3 16 170.E 172.1 2g 2•g 48 504.0 SD5.4 , 0'2 15, 173.7 173.9 2.1 3.1 - 97: 280.8 211.2 0.1 16, 175.1 175.4 3.D 3.3 0.2 26i 2855 286.1 _ 161 207.. 2 307.3 2 .0 2.9 I`�I O.S. I 104 Year 22._M9ntbal PHH. APR. dig PR R. mdivg� .2000 2000 2000 2110 j yg 2000 176.5 542.5 178.6 549.2 4.2 3.7 12 1 . 168 176.0 177:7 32 3_ - . - 1.O 513 536.5 541.6 _ - 267 •a •9 PHRCMM momm 1lID�Hg Year 1 Month AY APR. ttAY Coding AP "R. ending 999 2000 2000 R. HAY 2000 2000 May 2000 9.8 167.9 16a.1 3.2 3.3 t.9 500.1 500.7 0.1 1.7 263.9 164.4 2.4 2.9 l.9 484.4 485.7 0.3 '.] 169.4 169.E 2,7 3,0 .9 272.5 272.9 0.1 _0 169.0 169.3 2.9 3.2 .4 273.6 274.1 0.2 •7 207.1 107.1 2.0 2.1 0.0 38Da1BS Yeas 21f9aLhs R• PER. APR. endias M. endiv9 99 3000 APR. 2000 - 2000 APR. .000 2000 172.5 174.8 4.2 3.6 525.3 523.4 1 .3 a 271.5 273.2 3.3 1.2 7 508.7 513.E - 1 .0 - E D_ EAFH TABNEAMRLIFE iN ANCIENT EGYPT Treasures from the British Museum a a ^ beaw �ariners <'`a ge l ftmw I, Loa -iV on(g01 Wa � WOk Pov, A 6cm Alh C wo R", avlj Minrmsfc, BOWERS MUSEUM 2002 N. Main St. Santa Ana. CA 92706 (714)567-3600 www.howam.org 41 CITY OF NEWPORT BEACH Office of the City Manager (949) 644-3002 December 1, 2006 Dan Bell Mariners Escrow 1100 Newport Center Drive, Ste. 200 Newport Beach, CA 92660 Subject: 22 Beacon Bay Loan No.0070901426 Dear Mr. Bell: Enclosed please find an executed Lessor's Consent and Agreement for the above -referenced property. This document should be recorded and returned to the City Manager's office. If you have any questions, please call me. Sincerely, - 1 f ()- tk Shirley Ot Administra Enclosure City Hall • 3300 Newport Boulevard • Post Office Box 1768 Newport Beach California 92658-8915 • www.city.newport-beach.ca.us RECORDING REQUESTED B FIRST AMERICAN TITLE COME RESIDENTIAL DIVISION City Manager's Office City of Newport Beach P.O. Box 1768 Newport Beach, CA 92658-8915 DocurnentAgs electronically recorded by First AWrican Mission Viejo irded in Official Records, Orange County Daly, Clerk -Recorder II IIIII IIIII IIIII IIIII I�0111111111111111I�II IIII IIIII IIII III 108.00 200600084223512:58pm 12/15/06 1'17 59 Al2 35 0. 0 0.00 0.00 0.00 102.00 0.00 0.00 0.00 THIS SPACE FOR RECORDERS USE ONLY LESSOR'S CONSENT AND AGREEMENT Loan No: 0070901426 Recitals Borrower, referred to in this Agreement as "Lessee" and as more particularly described in Exhibit A, has applied for a loan from Wells Fargo Bank, NA ("Lender) to be secured by leased property, as such property is more particularly described in Exhibit A ("Property"). Lessee currently holds or will acquire upon consummation of the pending transaction, a leasehold interest under the lease described in Exhibit A ("Lease") in which the undersigned ("Lessor") is the lessor. Agreement 1. The information on Exhibit A is incorporated herein by reference. 2. The property is subject to the Lease described in Exhibit A. The lease documents described in Exhibit A constitute the entire agreement of Lessee and Lessor regarding the Property. The lease is in full force and effect and unmodified. All rents and other charges due have been paid, there are no other defaults and the Lease is in good standing. Lessor has no knowledge of any facts which now or after the passage of time or the giving notice, or both, would constitute a default under the Lease. The payments required under the Lease are set forth in Exhibit A. Payments and notices to Lessor are deliverable as set forth in Exhibit A. Lessor has no claims outstanding against Lessee in connection with the Property. 1 Loan No: 0070901426 3. Lessor consents to the granting of a security interest in Lessee's interest in the lease to Lender. Lessor agrees to send concurrently to Lender copies of any notices sent to Lessee pertaining to Lessee's default or Lessor's intent to terminate the Lease or any part thereof by certified U.S. mail. No modification or termination of the Lease agreed upon by Lessee shall be effective without the express written consent of Lender. Notice will be provided to Lender by certified mail at the following address: Wells Fargo Bank, NA, 1000 Blue Gentian Rd., Eagan, MN, 55121, referencing the Loan Number set forth on Exhibit A or at such other address given to the undersigned by Lender, at the same time as the notices are sent to Lessee. 4. Should the Lease be terminated for any reason prior to expiration of its stated term, Lessor shall, upon written request by Lender to Lessor made within sixty (60) days after such termination, enter into a new lease ("New Lessee) with Lender as the Lessee. The New Lease shall have a term equal to the remainder to the stated term of the Lease has it not been terminated prior to the end its stated term. The New Lease shall have the same covenants, conditions and agreements (except for any requirements which have been satisfied by Lessee prior to termination) as are contained in the lease. Lessor shall be required to enter into the New Lease only if Lender has remedied and cured all monetary defaults under the lease and has cured or has commenced and is diligently pursing completion of the cure of all non -monetary defaults of Lessee susceptible to sure any party other than by the original Lessee. 5. This consent and agreement shall not operate to change or supercede the terms & conditions of the lease in the event of a conflict, the terms of the lease shall prevail. Lessor Homer Bludau, City Manager City of Newport Beach 2 E Loan No: 0070901426 STATE OF CALIFORNIA COUNTY OF bP-OP On IDECe M BAR. is 200(o before me, I.I14JA10 RAGAiAOT0n) "'Inky pou- personally appeared N(-sk L'1DA(J personally known to me to be the person whose name is subscribed to the within instrument and acknowledged to me that he\sA\t>ey executed the same in hi0dr9eir authorized capacityie's), and that by his/b r/fir signatures`} on the instrument the person or the entity upon behalf of which the person acted, executed the instrument. WITNESS my hand and official seal. Signatu Nota lic in and forthe Statb of �LIF02N IR 3 GOVERNMENT CODE 27361.7 I CERTIFY UNDER PENALTY OF PERJURY THAT THE NOTARY SEAL ON THE DOCUMENT TO WHICH THIS STATEMENT IS ATTACHED READS AS FOLLOW: NAME OF NOTARY: L. WASHINGTON COUNTY WHERE BOND IS FILED: LOS ANGELES DATE COMMISSION EXPIRES: MARCH 6, 2009 COMMISION NO: 1556952 MANUFACTURERS/VENDOR NO: NNAl PLACE OF EXECUTION: MISSION VIEJO, CALIFORNIA DATE: December 14, 2006 BY: K EDDIE ZAVALA FIRST AMERICAN TITLE INSURANCE COMPANY 1 EXHIBIT A — LESSOR'S CONSENT AND AGREEMENT Loan No. 0070901426 Unit No. Borrower's (Lessee) Name: Chad and Cristina Steelberg 2. Property Address: 22 Beacon Bay, Newport Beach, CA 92660 3. Property's Legal Description (if a metes & bounds attach legal): See Attached IM E Developer/Condo Homeowners Assoc. (Lessor) Name: Beacon Bay Lease (including all amendments and dates): See Attached 6. Borrower (Lessee's) Current Monthly Lease Payment Payments are current (circle eithe Yes r No). 7 $3,875.00 Deliver notices and payments to Lessor at: City Manager's Office, City of Newport Beach, P.O. Box 1768, Newport Beach, CA 92658-8915 8. Term of Lease: 50 Years; commenced on Expires on July 1, 2044 May 19, 2000; If applicable: Pursuant to the Lease, Lessee has the right, at its option, to renew the term of the Lease for N/A consecutive renewal terms of N/A years each. 11 ATTACHMENT TO EXHIBIT A — LESSOR'S CONSENT AND AGREEMENT Property Description Lot 22 and that portion of Lot H fronting Lot 22 and extending Northward 32 feet, and that portion of Lot 1 fronting Lot 22 and extending Southward 28 feet to the U.S. bulkhead line, as shown on the map filed in Book 9, Pages 42 and 43 of Record of Surveys in the Office of the County Recorder, County of Orange, State of California. 5 0 Exhibit "A" Title Order Number: He Number: 0-MV-2591995 Real property In the City of Newport Beach, County of Orange, State of California, described as follows: A LEASEHOLD ESTATE CREATED BY THAT CERTAIN MEMORANDUM OF LEASE EXECUTED BY THE CITY OF NEWPORT BEACH, A CHARTERED MUNICIPAL CORPORATION, LESSOR, AND CHAD E. STEELBERG AND CRISTINA M. STEELBERG, HUSBAND AND WIFE, AS COMMUNITY PROPERTY, LESSEE, AND SUBJECT TO ALL OF THE PROVISIONS THEREIN CONTAINED, AS DISCLOSED BY MEMORANDUM OF LEASE, DATED MAY 19, 2000 AND RECORDED MAY 19, 2000 AS INSTRUMENT NO. 20000265769 OF OFFICIAL RECORDS OF ORANGE COUNTY, CALIFORNIA. LOT 22 AND THAT PORTION OF LOT H FRONTING LOT 22 AND EXTENDING NORTHWARD 32 FEET, AND THAT PORTION OF LOT 1 FRONTING LOT 22 AND EXTENDING SOUTHWARD 28 FEET TO THE U.S. BULKHEAD LINE, AS SHOWN ON THE MAP FILED IN BOOK 9, PAGES 42 AND 43 OF RECORD OF SURVEYS IN THE OFFICE OF THE COUNTY RECORDER, COUNTY OF ORANGE, STATE OF CALIFORNIA. APN:988-88-031 u LEASE THIS LEASE is made and entered into as of the NEWPORT BEACH, a Charter City and municipal core r IvI tion ("Less referred to as 22 RECITALS 2000, by and between the CITY OF r"), and Chad E. Steelberg and Cristina "), regarding the real property commonly A. The City of Newport Beach, by virtue of a 1978 legislative grant found in Chapter 74 of the Statutes of 1978 (the "Beacon Bay Bill"), holds the right, title and interest to certain tidelands and uplands commonly known as Beacon Bay and generally described in Exhibit A attached hereto and incorporated by reference. B. The Beacon Bay Bill frees the "Westerly portion" of the filled tidelands from the public trust and specifically authorizes the lease of the property for residential purposes subject to certain express statutory conditions. C. Beacon Bay, including the "Westerly Portion" thereof, has been divided into individual lots, with each lot leased by the City for residential purposes until December 31, 2005. D. On November 3, 1987, a majority of electors of the City approved a measure which authorized the City Council to enter into new leases of residential lots in Beacon Bay for a period not to exceed fifty (50) years. E. On November 3, 1992, a majority of electors of the City approved Measure M which authorized the City Council to lease tidelands and waterfront property consistent with the provisions of state law. F. The City Council, pursuant to the authority conferred by the electors, entered into negotiations with current lessees and the parties have agreed on the terms and conditions of a new lease with a fifty (50) year term, provision for adjustments in lease payments to reflect changes in the value of Beacon Bay leaseholds, and a recalculation of lease payments in the event of a transfer of the Lease by the Current Lessee or any Subsequent Lessee (as defined herein). G. Lessee acknowledges that the terms and conditions of this Lease may result in Lessee paying substantially more or less than another Lessee for similar property depending upon the date this Lease is executed, the date of any subsequent transfer, and the consideration paid for transfers of similarly situated property. H. Lessee acknowledges that accurate and complete reporting to the City of all consideration paid for the transfer of this Lease is vitally important to the City in that failure to fully report all consideration could materially reduce the amount of rent received by the City from other Beacon Bay Lessees. I. Lessor and Lessee acknowledge that the City has agreed to a fifty (50) year term and limited lease payment increases in consideration of provisions which require payment of rent approximating fair market rental value, without regard to any advantage maintained by Current Lessees, upon transfer by Current Lessees and payment of deferred rent in the event the Lease is not signed on or before the Effective Date (as -defined herein). J. The California State Lands Commission has reviewed the form of this Lease and determined that it is in conformance with the provisions of relevant statutes, rules and regulations, including, without limitation, the Beacon Bay Bill. K. Lessor has determined that this Lease is consistent with provisions of the Beacon Bay Bill, the Charter, General Plan and Zoning Ordinance of the City of Newport Beach, and of all other applicable state and local laws. NB1.107371.V20W4194 L. Lessor has determined it is in the best interests of the citizens of Newport Beach to maintain the residential character of Beacon Bay and to enter into new leases with Current Lessees under the terms and conditions specified in this agreement. NOW, THEREFORE, in consideration of the foregoing recitals and the covenants in this lease, the parties agree as follows: LEASED LAND. Lessor hereby leases to Lessee the real property commonly known as Beacon Bay Lot 22 (the "Leased Land"), which is more particularly described in Exhibit B, and generally depicted on Exhibit A, each attached hereto and incorporated by reference, subject to the limitations on use specified in Section 6. As used in this Lease, the term "Premises" shall refer to the Leased Land and any improvements constructed thereon. Lessor expressly reserves all oil, oil rights, gas, minerals, mineral rights, natural gas rights and other hydrocarbon substances in and under the Leased Land and the right to grant and transfer the same, together with all necessary and convenient rights to explore for, develop, produce and extract and take the same, subject to the express limitation that any and all operations for the exploration, development, production, extraction and taking of any such substance shall be carried on at levels below the depth of five hundred feet (500') from the surface of the land by means of wells, derricks and other equipment from surface locations on adjoining or neighboring land, and subject further to all restrictions and regulations concerning the drilling for, and production of, oil, gas, minerals, petroleum and other hydrocarbon substances specified in the Newport Beach City Charter or the Newport Beach Municipal Code. 2. TERM. The term of this Lease shall commence on the Execution Date, but in no event prior to the Effective Date, and shall expire on the date fifty (50) years following the Effective Date, unless earlier terminated as provided in this Lease. 3. RENTAL. A. Definitions. For the purposes of this Lease, the following terms shall be defined as specified in this paragraph. In certain cases, the definition of the term contains operative language that affects the rights of the parties: (1) "Actual Sales Value" shall mean the total of all consideration paid for the non-exempt transfer of this Lease or the Pre-existing Lease, including the improvements on the Leased Land, from the Current Lessee, or Subsequent Lessee, to another person, excluding any consideration paid for the transfer of personal property in connection with such transaction. (2) "Average Actual Sales Value Rent" shall mean two and one-half percent (2.5 %) of the mean of the Actual Sales Value of the non-exempt transfer of a similarly situated (waterfront or interior) Beacon Bay parcels as specified in this subparagraph. Average Actual Sales Value Rent shall be the mean of the Actual Sales Value of the three similarly situated parcels most recently transferred. Exempt transfers, as defined in Paragraph 3.13(3), shall not be used to calculate Average Actual Sales Value rent. (3) "CPI" shall mean the Consumer Price Index - Los Angeles -Anaheim -Riverside Area, All Urban Consumers, All Items, published by the United States Department of Labor, Bureau of Labor Statistics (1982-1984=100). If the 1982-1984 base of said Consumer Price Index should hereafter be changed, then the new base shall be converted to the 1982-1984 base and the base as so converted shall be used. In the event that the Consumer Price Index, as now compiled and published', shall cease to be published, then the successor index shall be used provided that an appropriate conversion from the old index to the new index can feasibly be made. If such conversion cannot be made, or if no such index is published, then another index most nearly comparable thereto recognized as authoritative shall be substituted by agreement. (4) "Current Lessee" shall mean the person or persons who, as of April 1, 1994 (the "Cut-off Date"), was or were the Lessee under the Pre-existing Lease. (5) "Deferred Rent" shall mean the total rent that a Current Lessee would have paid had this Lease been executed on the Effective Date, through and including the date on which this Lease was first executed, less the rent actually paid pursuant to the Pre- existing Lease, together with interest at the rate of eight percent (8%) per annum calculated on the balance due at the end of each Lease Year or portion thereof. (6) "Effective Date" shall mean July 1, 1994. (7) "Execution Date" shall mean the date when this Lease is executed by Lessee (8) "Initial Rent" shall mean the effective net rent for the Leased Land as determined by the appraisal of George Hamilton Jones, with due consideration to the leasehold advantage created by the Pre-existing Lease, all as shown on Exhibit C attached hereto and incorporated herein by reference. (9) "Person" shall mean any natural person or natural person(s) and, does not include any corporation, association, or business entity in any form except a financial institution or other bona fide lender acting in the capacity of a lender or an inter vivos or living trust. (10) "Pre-existing Lease" shall mean the Lease for the Leased Land which was effective on January 1, 1988, and would, absent this Lease, expire on July 1, 2006. (11) "Transferred" shall mean any sale, assignment, sublease or other transaction, other than an exempt transfer as defined in Paragraph 3.6(3), pursuant to which the right to possession of the premises and the right to sign a new lease identical to this Lease is transferred'to another person. B. Rental Payments. Lessee shall pay annual rent in the sum of Forty-six thousand five hundred and 00/100 ($46.500.00 ), payable at the rate of Three Thousand eight hundred and seventy-five and ($3.875.00 ) per month. Lessee shall also pay, if applicable, deferred rent in the sum of upon execution of this Lease. ent shall - shall not (circle one) be adjusted every seven (7) years after the date of transfer in accordance with the provisions of Paragraph 3.6(4). Annual rent, deferred rent, and periodic adjustments are based upon the following: (1) Execution Before Effective Date. In the event this Lease is executed by the Lessee on or before the Effective Date, Rent shall be paid as follows: (a) Current Lessee: Current Lessee shall pay annual rent equal to Initial Rent as specified in Exhibit C. Thereafter, so long as there has been no transfer of this Lease by the Current Lessee (other than an exempt transfer as set forth in Paragraph 3.B(3), rent shall remain as specified in this subparagraph notwithstanding the provisions of Paragraph 3.13(4). (b) In the event of any transfer of this Lease to a Subsequent Lessee, ,the Subsequent Lessee shall pay annual rent equal to two and one-half percent (2.5%) of the Actual Sales Value determined as of the date of the transfer in accordance with the provisions of paragraph 3.A(1). Thereafter, rent shall be adjusted every seven years after the date of the transfer in accordance with the provisions of paragraph 3.8(4). (c) In the event of any transfer of this Lease to a Subsequent Lessee in a transaction other than an arm's length assignment of this Lease, and sale of the improvements on the Leased Land, if any, such as a gift or transfer by inheritance other than an exempt transfer under Paragraph 3.13(3), the Subsequent Lessee shall pay annual rent equal to the Average Actual Sales Value Rent calculated as of the date of the transfer in accordance with the provisions of Paragraph 3.A(2). (2) Execution After the Effective Date. In the event this Lease is first executed after the Effective Date, rent shall be determined and paid as follows: (a) Current Lessee/Within Five Years After Effective Date: In the event this Lease is executed by the Current Lessee within five (5) years after the Effective Date, the Current Lessee shall pay annual rent equal to Initial Rent plus a sum calculated by multiplying the difference between Initial Rent and Average Actual Sales Value Rent by a fraction equal to the number of months between the Effective Date and Execution Date, divided by sixty. The Current Lessee shall also pay all Deferred Rent concurrent with the execution of this Lease. Thereafter, So'long as there has been no transfer of this Lease by the Current Lessee, rent shall remain as specified in this subparagraph, notwithstanding the provisions of Paragraph 3.B(4). (b) Current Lessee/More Than Five Years After Effective Date: In the event this Lease is executed by the Current Lessee more than five (5) years after the Effective Date, the Current Lessee shall pay annual rent equal to Average Actual Sales Value Rent calculated as of the date of execution in accordance with the provisions of Paragraph 3.A(2). The Current Lessee shall also pay all Deferred Rent concurrent with the execution of this Lease. Thereafter, rent shall be adjusted every seven (7) years after the date of execution in accordance with the provisions of Paragraph 3.B(4). (c) Subsequent Lessee: In the event the Current Lessee transfers the Pre- existing Lease to a Subsequent Lessee who wishes to sign this Lease after the Cut-off Date, the Subsequent Lessee shall pay annual rent equal to two and one-half percent (2.5%) of Actual Sales Value determined as of the date of execution and in accordance with Paragraph 3.A(1). The Subsequent Lessee shall also pay all Deferred Rent concurrent with the execution of this Lease. The 4 annual rent shall be adjusted every seven (7) years following the Execution Date in accordance with the provisions of Paragraph 3.B(4). (d) Subsequent Lessee: In the event of any transfer of this Lease to a Subsequent Lessee who wished to sign this Lease after the Cut-off Date in a transaction other than an arm's length assignment of this Lease, and sale of the improvements on the Leased Land, if any, such as a gift or transfer by inheritance other than an exempt transfer under Paragraph 3.6(3), the Subsequent Lessee shall pay annual rent equal to the Average Actual Sales Value Rent calculated as of the date of the transfer in accordance with the provisions of Paragraph 3.A(2). The Subsequent Lessee shall also pay all Deferred Rent concurrent with the execution of this Lease. The annual rent shall be adjusted every seven (7) years following the Execution Date in accordance with the provisions of Paragraph 3.B(4). (3) Exempt Transfers. The provisions of Paragraph 3.13 regarding transfers shall not operate to increase rent if: (a) Lessee is assigning an interest in this Lease to a trustee under a deed of trust for the benefit of a lender; (b) the transfer is caused by the death of a spouse and the full interest of the deceased spouse is transferred to a surviving spouse; (c) the transfer of an interest in this Lease is between or among tenants in common or joint tenants in ownership of the leasehold estate created by this Lease, and such tenants in common or joint tenants first acquired their respective interests in this Lease simultaneously; (d) the transfer or assignment is by a bona fide lender acquiring title by foreclosure or deed in lieu of foreclosure of a trust deed; or (e) the transfer is a sublease of the premises for three years or less; provided, however, that in determining the term of a sublease, any options or rights to renew or extend the sublease shall be considered part of the term whether or not exercised; (f) the transfer is caused by the dissolution of the marriage of Lessee and the full interest of one of the spouses is transferred to the other spouse; (g) the transfer is to an inter vivos trust, living trust or other similar estate planning arrangement of Lessee; provided, however, that the provisions of Paragraph 3.0 shall apply upon ,the death of such Lessee if the beneficiary of such trust or other arrangement is other than the surviving spouse or a tenant in common or joint tenant in ownership of the leasehold estate created by this Lease, and such tenants in common or joint tenants first acquired their respective interests in this Lease simultaneously; or (h) the transfer is to a guardian or custodian of Lessee appointed due to the physical or mental incapacity of Lessee; provided, however, that the provisions of Paragraph 3.0 shall apply upon the death of such Lessee unless the transferee is the surviving spouse or a tenant in common or joint tenant in ownership of the leasehold estate created by this Lease, and such tenants in common or joint tenants first acquired their respective interests in this Lease simultaneously. (4) Rent Adjustments. (a) Except as provided in Paragraphs 3.13(I)(a), 3.6(2)(a) and 3.13(3), on the seventh (7th) anniversary of the Execution Date of this Lease, or the seventh (7th) anniversary of the date of any transfer of this Lease by any Current or Subsequent Lessee, rent shall be adjusted to reflect any increase or decrease in the cost of living, which adjustment shall be determined as set forth hereinafter. The most recently published CPI figure shall be determined as of the date ninety (90) days prior to the adjustment date, and rent payable during the ensuing seven (7) year period shall be determined by increasing or decreasing the then current rent by a percentage equal to the percentage increase or decrease, if any, in the CPI as of the Execution Date, or the date of the most recent rental adjustment, or the date of any transfer of this Lease by any Current or Subsequent Lessee, whichever is later. In no event shall rent be increased or decreased by a sum greater than forty percent (40%) of the rent paid by Lessee as of the later of (i) the Execution Date, or (ii) the last rental adjustment date. Lessor shall endeavor to notify Lessee of rental adjustments at least forty-five (45) days prior to the end of each seventh (7th) lease year; provided, however, failure of Lessor to give forty-five (45) days' notice does not relieve Lessee from the obligation to pay increased rent or the right to pay less rent in the event of a decrease in the CPI; and, provided further, that Lessee shall have no obligation to pay rent increases which apply to any period greater than ninety (90) days prior to the receipt by Lessee of Lessor's notice of an increase in rent. (b) In the event Lessee is two or more persons owning the leasehold estate created hereby as tenants in common or joint tenants, and less than all of such persons transfer their interest in this Lease to a person other than to an existing tenant in common or joint tenant, the rent adjustment shall be prorated to reflect the percentage interest being transferred to a third party. For example, if two persons are the Lessee as tenants in common as to equal one-half interests, and one of such persons transfers his/her 50% interest to a third party, the rent shall be adjusted as provided in Paragraph 3.13(2)(c), and thereafter as provided in Paragraph 3.6(4)(a), and the resultant rental increase multiplied by the percentage transferred (50%) to determine the rental increase; provided, however, that any subsequent transfer of an interest in this Lease to such third party shall not be exempt under subparagraph 3.6(3). (5) Installment Payments/Grace Period. Lessee shall pay rent in equal monthly installments, in advance, with payment due on or before the first day of the month for which rent is paid. Rent shall be prorated during any month when a transaction which increases rent becomes effective other than the first day of that month. No late payment charge applies to payments received by Lessor on or before 5:00 P.M. on the fifteenth (15th) day of the month for which the payment is made ("Grace Period") . If a rent payment, or any portion thereof, is received by Lessor after expiration of the Grace Period, Lessee shall pay Lessor a late payment charge equal to four percent (4%) of each late payment, or portion thereof. Rent payments shall be payable to the City of Newport Beach and sent, or delivered, to the Finance Director at the address specified for service of notices. Rent shall be payable by Lessee to Lessor in such coin or currency to the United States as at the time of payment is legal tender for public and private debts. Lessor and Lessee agree that late charges specified in this paragraph represent a fair and reasonable estimate of the cost Lessor will incur by reason of any late payment by Lessee. Any late or missed payment of rent constitutes a default pursuant to paragraph 14 of this Lease. Any failure by Lessor to declare a default and initiate termination of this Lease due to a late or missed payment shall not be considered a waiver of the right of Lessor to do so for that or any other late or missed payment. C. Credit to Tidelands Fund. In calculating Initial Rent under this Lease, a credit was given to certain of the Current Lessees equal to the annual amortization of the present value of the additional property tax to be paid by such lessees during the remaining period of the Pre-existing 6 Lease. This credit, commonly referred to as the "tax advantage", is shown on Exhibit D for each affected lot. This credit was extended by Lessor to Current Lessees as consideration for entering into this Lease. As a consideration in its approval of this Lease, the California State Lands Commission required Lessor to credit its State supervised Tidelands Trust Fund by an amount equivalent to the tax advantage derived from those lots in Beacon Bay comprising tidelands. This amount is shown on Exhibit D for each affected lot comprising tidelands. Accordingly, Lessor has unilaterally agreed to annually calculate the amount of such tax advantage derived from the tidelands parcels in Beacon Bay and to credit an equivalent amount as revenue to the State supervised Tidelands Trust Fund. This provision is included in this Lease to acknowledge the agreement of Lessor with the California State Lands Commission, and does not affect the rights and obligations of Lessor or Lessee under this Lease. 4. TRANSFERS. A. Conditions Precedent to Transfer. Lessee may transfer this Lease subject to the prior written consent of Lessor, which consent shall not be unreasonably withheld, delayed or conditioned. Lessor shall consent to any transfer when Lessee and the proposed transferee have complied with the following: (1) Lessee shall furnish Lessor with executed copies of each and every document used to effect the transfer. (2) Lessee or the proposed transferee shall pay to Lessor a transfer fee of one hundred dollars ($100.00); (3) Lessee shall execute a "Termination of Leasehold Interest" for recordation; and (4) The proposed transferee shall execute a new lease and execute a "Memorandum of Lease" for recordation, which lease shall be identical to this Lease and have a term equal to the remaining term of this Lease at the time of the transfer. B. Transfer Information. The parties to any non-exempt transfer of this Lease shall provide Lessor with all information relevant to a determination of the total consideration paid for the transfer, as well as all documents which are relevant to the total consideration paid for the transfer. Lessee and the proposed transferee shall provide this information not later than forty- five (45) days prior to the proposed effective date of the transfer of this Lease. Lessor shall have the right, at its sole discretion, to commission an appraisal of the fair market value of this Lease and improvements thereon as of the date of transfer. Any such appraisal shall be completed not later than thirty (30) days after receipt by Lessor of the aforementioned information from the Lessee. If the value determined by the appraiser commissioned by Lessor exceeds the stated total consideration to be paid based on the information received from the Lessee by more than ten percent (10%), Lessor shall so notify the Lessee and provide Lessee with a full copy of such appraisal report, and said value shall be deemed the Actual Sales Value for purposes of calculating Average Actual Sales Value Rent and rental payments unless within fifteen (15) days after receiving such notice and the report the Lessee notifies Lessor that Lessee elects to cause an appraisal of the fair market value of this Lease and improvements thereon as of the date of transfer to be conducted by an independent appraiser. In such event, Lessee cause such appraisal to be completed no later than thirty (30) days after the notice to Lessor and shall provide Lessor with a full copy of the appraisal upon completion. The Actual Sales Value for purposes of calculating Average Actual Sales Value Rent and rental payments shall be the greater of (1) the stated consideration for the transfer, or (H) the average of the two appraisals. Any appraisal commissioned by Lessor or Lessee under this Paragraph 4.6 shall be conducted by an MAI appraiser licensed to conduct business in the State of California and experienced in residential appraisals in Southern California. C. Exempt Transfer Information. Lessor's consent is not required for the "exempt transfers" referenced in Paragraph 3.B(3); provided, however, Lessee shall furnish Lessor with copies of all documents used to effect any exempt transfer. • I ' I D. Audit of Subleases. It is the intent of the parties that transfers referred to in Section 3.13(3)(e) shall only be exempt from the further provisions of Paragraph 3.B (in respect of rental adjustments) if such subleases are not substantially equivalent to, do not have substantially the same economic effect as, or are Intended to disguise, a transfer by the then Lessee of all or substantially all of his/her interest in this Lease to the putative sublessee. Lessor shall at all times have the right, upon written request to the Lessee, to receive copies of all written agreements, and to be advised in full of all oral agreements, between the Lessee and any sublessee of the Leased Land. Any purported sublease of the premises which is determined to be substantially equivalent to, or have substantially the same economic effect as, or is intended to disguise, a transfer by the then Lessee of all or substantially all of his/her interest in this Lease to the putative sublessee shall be void and of no force or effect, and such attempted or purported sublease shall, at the option of Lessor, (i) be an event of default by the Lessee under this Lease, or (ii) permit Lessor to treat such sublease as a transfer of this Lease subject to the provisions of Section 3.B. 5. ENCUMBRANCES. A. Right to Encumber. Lessee may encumber this Lease by deed of trust, mortgage, or similar instrument, in favor of any bona fide lender ("Lender") in a bona fide loan transaction for any purpose without the consent of Lessor. To determine whether a loan is a bona fide lending transaction, and not an arrangement for transfer of the possession or title to the Premises to the putative lender, Lessee and the lender agree to provide Lessor with all documentation executed between Lessee and the lender concerning the loan upon request of Lessor. Neither Lessee nor Lessor shall have the power to encumber Lessor's interest in the Leased Land. Any encumbrance shall be subject to all covenants, conditions and restrictions in this Lease and to all rights and interests of Lessor except as otherwise expressly provided in this Lease. Lessee shall give Lessor prior written notice of any encumbrance. B. Notice to Lender. Lessor shall have no obligation to give any Lender any written notice pursuant to this Lease unless the Lender has given Lessor written notice of its name, address, and nature of encumbrance ("Complying Lender") . Lessor shall give all Complying Lenders a copy of any written notice of default, notice of termination or other notice which may affect Lessee's rights under this Lease. Notice shall be deemed given by Lessor to Lender five (5) days following deposit in the United States mail, certified and return receipt requested, postage prepaid, and sent to Lender at the address furnished in writing by Lender. C. Modification. Lessor and Lessee agree that they will not modify, surrender or cancel this Lease by mutual agreement without the prior written consent of Lender. D. Rights of Lender. Any Lender holding or the beneficiary of a security interest or lien on this Lease and the leasehold estate created hereby shall have the right, during the term of the Lease, to: (1) perform any act required of Lessee pursuant to this Lease; (2) transfer this Lease to the purchaser at any foreclosure sale, the assignee in the event of an assignment in lieu of foreclosure, or to acquire the interest of Lessee pursuant to foreclosure or assignment and thereafter transfer this Lease to the Lender's successor. Lender shall have no right to transfer this Lease unless and until Lender has cured all defaults requiring the payment or expenditure of money by Lessee. E. Right of Lender to Cure Default. Lessor shall give written notice of any default or breach of this Lease by Lessee to Lender and afford Lender the opportunity, after notice, to: (1) cure the breach or default within ten (10) days after expiration of the time period granted to Lessee for curing the default if the default can be cured by payment of money; 8 0 0 (2) cure the breach or default within thirty (30) days after expiration of the time period granted to Lessee for curing the default when the breach or default can be cured within that period of time; or (3) cure the breach or default in a reasonable time when something other than money is required to cure the breach or default and cannot be performed within thirty (30) days after expiration of the time period granted to Lessee for curing the default, provided the acts necessary to cure the breach are commenced within thirty (30) days and thereafter diligently pursued to completion by Lender. F. Foreclosure in Lieu of Cure. Lender may forestall termination of this Lease for a default or breach by Lessee by commencing foreclosure proceedings subject to strict compliance with the following: (1) proceedings are commenced within thirty (30) days after the later of (i) expiration of the time period granted to Lessee for curing the default, or (ii) service on Lender of the notice describing the breach or default; (2) the proceedings are diligently pursued to completion in the manner authorized by law; and (3) Lender performs all of the terms, covenants and conditions of this Lease requiring the payment or expenditure of money by Lessee until the proceedings are complete or are discharged by redemption, satisfaction, payment or conveyance of this Lease to Lender. G. New Lease. Notwithstanding any other provision of this Lease, should this Lease terminate or be terminated because of any default or breach by Lessee, Lessor shall enter into a new lease with Lender as lessee provided: (1) the written request for the new lease is served on Lessor by Lender within thirty (30) days after the termination of this Lease. (2) the new lease contains the same terms and conditions as this Lease except for those which have already been fulfilled or are no longer applicable. (3) on execution of the new lease by Lessor, Lender shall pay any and all sums that would be due upon execution of the new lease, but for its termination, and shall fully remedy, or agree in writing to remedy, any other default or breach committed by Lessee that can reasonably be remedied by Lender. (4) Lender shall, upon execution of the new lease, pay all reasonable costs and expenses (including attorney's fees) incurred in terminating this Lease, recovering possession of the premises from Lessee, in preparing the new lease. H. Miscellaneous. The following provisions shall apply to Lessor, Lessee and any Lender: (1) Any Lender shall be liable to perform the obligations of the Lessee under this Lease only so long as the Lender holds title to this Lease; (2) Lessee shall, within ten (10) days after the recordation of any trust deed or other security instrument, record, at Lessee's sole expense, Lessor's written request for a copy of any notice of default and/or notice of sale under any deed of trust as provided by state law. 6. USE AND MAINTENANCE. A. Use of Leased Land. The Leased Land shall be solely for residential purposes. Lessee may demolish, construct, remodel, reconstruct and maintain structures on the Leased Land for residential purposes so long as the structures and construction are authorized by appropriate City permit and fully comply with all City ordinances, resolutions, regulations, policies, and plans. Lessee shall also obtain permission to construct and/or maintain structures from the California Coastal Commission and any other state agency if required by law. B. Maintenance of Improvements. Lessor shall not be required to make any changes, alterations, additions, improvements, or repairs in on or about all or part of the Premises. Lessee shall, at all times during the term of this Lease and without any cost or expense to Lessor, keep and maintain, the Premises, including, without limitation, all structures, facilities, walks, curbs, parkways and other improvements, in good order and repair and in a clean, safe, sanitary and orderly condition. Lessee shall repair or reconstruct any improvements on the Leased Land following any damage or destruction thereof, unless the improvements are being destroyed in conjunction with remodeling or reconstruction and Lessor has consented, in writing, to the damage or destruction. Lessee shall cause to be constructed, maintained and repaired all utilities, pipes, walls, sewers, drains, and other improvements on the Premises to the extent required by law or as necessary to maintain the improvement in good order and repair and safe and sanitary condition. C. Compliance with Laws. Lessee shall make, or cause to be made, any additions, alterations or repairs to any structure or improvement on the Premises which may be required by, and Lessee shall otherwise observe and comply with, any law, statute, ordinance, plan, resolution or policy applicable to the Premises. Lessee shall indemnify, defend and hold Lessor harmless from and against any loss, liability, action, claim or damage, arising out of, or in any way related, to Lessee's failure to comply with, and perform pursuant to, provisions of this subparagraph C. All repairs, additions, and alterations to the structures or improvements on the Premises shall conform to all applicable laws, ordinances, regulations, plans, policies and resolutions and all work shall be performed with reasonable diligence, completed within a reasonable time, and performed at the sole cost and expense of Lessee. D. As Is Condition of Premises. Lessee expressly accepts the Premises "as is" and acknowledges that Lessor has made no representations or warranties as to the suitability of the property or any construction or improvement. Lessee shall conduct all tests necessary to determine the suitability of the property for any proposed construction or improvement, including, without limitation, the amount and extent of any fill, and related factors. Lessee expressly acknowledges that Lessor shall not be liable for any damage or loss resulting from any subsurface or soil condition in, on, or under the Premises or adjacent property. Lessee expressly acknowledges that, while the legislature of the State of California has purportedly removed the public trust restrictions on use of the Property pursuant to the Beacon Bay Bill, the Leased Land may constitute filled tidelands, and Lessor has made no representation or warranty relative to the validity of the Beacon Bay Bill or the power of the legislature of the State of California to remove public trust restrictions on tidelands through legislation. Notwithstanding the foregoing, in the event of any challenge to the right and power of Lessor to lease the Leased Land for the purposes provided in this Lease, Lessor agrees, at its sole cost and expense, to use all reasonable efforts to resist and defend against such challenge and to seek a ruling or judgment affirming and upholding the right and power of Lessor to lease the Leased Land for the purposes provided in this Lease. TAXES AND UTILITIES. It is understood by Lessor and Lessee that this Lease shall give rise to a possessory interest tax obligation and that the execution of this Lease will constitute a reassessment event which may give rise to a material increase in the possessory interest tax currently payable by Lessee under the Pre-existing Lease. Lessee shall pay, before delinquent, all utility charges and any general and special taxes, assessments or other governmental charges, if any, which may be levied on the Leased Land, and/or any improvements, including, without limitation, any possessory interest tax. Any lien for unpaid utilities, taxes, 10 assessments or charges shall not attach to the leasehold interest but only to improvements located on the Leased Land. 8. USE AND MAINTENANCE OF COMMON AREA. Lessee shall have the right to use the streets, beaches, walkways, tennis courts, docks, piers, and common landscaped areas in Beacon Bay (as depicted on Exhibit A) and which are leased to the Beacon Bay Community Association by Lessor in consideration of the maintenance thereof by such Association and rent to be paid by individual Lessees under their respective leases. 9. MAINTENANCE AND IMPROVEMENT OF INFRASTRUCTURE. Lessor has no obligation to install, improve, repair, or maintain streets, curbs, gutters, water lines, sewer lines, drainage facilities, street lighting or other facilities used by the residents of Beacon Bay (Infrastructure). Notwithstanding Section 8 above, Lessor reserves the right, after a five (5) year period following the Effective Date and upon approval by the Lessees representing a majority of the lots in Beacon Bay, to improve and maintain streets, curbs, gutters, water lines, sewer lines', drainage facilities, street lighting, telephone and electricity lines and other Infrastructure facilities in Beacon Bay at its initial cost and to assess Lessee for a pro rata share of such costs, and to collect such costs from Lessee in the form of rent over the remaining term of this Lease. 10. COMMUNITY ASSOCIATION. A. Membership in Association. As a material part of the consideration of this Lease, and as an express condition to the continuance of any of the rights of Lessee pursuant to this Agreement, Lessee agrees to become, and during the term of this Lease to remain, a member in good standing of the Beacon Bay Community Association. B. Compliance with Rules and Regulations. Lessee agrees to abide by the Articles of Incorporation, bylaws, and all rules and regulations of the Association, and to pay to the Association, before delinquency, all valid dues, fees, assessments and other charges properly levied or assessed by the Association. Lessee's failure to comply with the provisions of Paragraph A and this Paragraph B shall constitute a material breach of this Lease. C. Lessor Maintenance of Common Areas. In addition to the rights reserved to Lessor pursuant to the provisions of Section 9, if the Community Association fails or ceases to maintain community facilities, Lessor may, at its option and without obligation, assume the obligations of the Community Association to maintain, repair, install or improve community facilities. In such event, Lessee shall pay a pro rata share of Lessor's reasonable expenses in maintaining and operating the community facilities, including a reasonable management fee or the fee charged by a management agent. Lessee's pro rata share shall be determined by dividing Lessor's costs by the number of residential lots within Beacon Bay (currently seventy-two lots) . Lessee's pro rate share of the annual costs incurred by Lessor shall be paid within thirty (30) days after written notice of the amount due, and any failure to pay shall constitute a material breach of this Lease. The costs of maintaining and operating community facilities shall be determined annually and solely from the financial records of Lessor. 11. COVENANTS, CONDITIONS AND RESTRICTIONS. Lessee agrees to abide and be bound by all covenants, conditions, restrictions and reservations as contained in Exhibit D attached hereto and incorporated herein by this reference, Said covenants, conditions and restrictions shall run with the Leased Land and shall be binding on Lessee and Lessee's successors in interest. 12. INDEMNIFICATION. Lessee shall indemnify, defend and hold harmless Lessor, its City Council, Boards and Commissions, officers, agents, servants and employees from and against any and all actions, causes of action, 11 obligations, costs, damages, losses, claims, liabilities and demands of any nature whatsoever, including reasonable attorneys' fees, regardless of the merit or outcome of any such claim or suit, arising out of, or in any way related, to the condition of the Premises, or the use or possession of the Premises by Lessee, or Lessee's employees, agents, representatives, guests or invitees, as well as any activity, work or things which may be permitted or suffered by Lessee in or on the Premises. Lessee shall indemnify, defend and hold harmless Lessor, its City Council, Boards and Commissions, officers, agents, servants and employees from and against any and all actions, causes of action, obligations, costs, damages, losses, claims, liabilities, and demands of any nature whatsoever, including reasonable attorneys' fees, accruing or resulting to any and all persons, firms or corporations furnishing or supplying work, services, materials, equipment or supplies arising from or in any manner connected to the use or possession of the Premises by Lessee or from any activity, work or things which may be permitted or suffered by Lessee in or about the Premises. Without limiting the generality of the foregoing, Lessee hereby assumes all risk of damage to property or injury to persons in or about the Premises from any cause except for damage or injury resulting from the negligence or willful, fraudulent or criminal conduct by Lessor and/or its officers, employees, agents and representatives, and Lessee hereby waives all claims in respect thereof against Lessor. 13. INSURANCE. A. General Conditions. All insurance required to be carried pursuant to this Section 13 shall be obtained from reputable carriers licensed to conduct business in the State of California. Each policy required to be carried pursuant to this Section 13 shall name Lessee and Lessor as additional named insureds, and shall provide that the policy may not be surrendered, cancelled or terminated, or coverage reduced, without not less than twenty (20) days prior written notice to Lessor. B. Fire Insurance. Lessee shall, during the term of this Lease, insure all structures and improvements on the Leased Land against loss or damage by fire or other risk for residential structures. The insurance shall provide coverage to at least ninety percent (90%) of the full insurable replacement value of all improvements on the Leased Land, with the loss payable to Lessee unless this Lease is terminated by Lessor for default of Lessee in which case the proceeds of insurance shall be paid to Lessor. C. Liability Insurance. Lessee shall, at Lessee's sole cost and expense, procure and maintain during the term of this Lease, a broad form comprehensive coverage policy of public liability insurance which insures Lessee and Lessor against any loss or liability caused by, or in any way related to, the condition, for Lessee's use and occupation, of the premises in amounts not less than: (1) $500,000 per occurrence for injury to, or,death of, one person; (2) $100,000 for damage to or destruction of property. 14. DEFAULT. A. Events of Default. The occurrence of any one or more of the following events shall constitute a material default and breach of this Lease by Lessee: (1) the abandonment of the Premises by Lessee; (2) the failure by Lessee to make any payment of rent when due if the failure continues for three (3) days after written notice has been given to Lessee. In the event that Lessor serves Lessee with a Notice to Pay Rent or Quit pursuant to applicable unlawful detainer statutes, such Notice to Pay Rent or Quit shall also constitute the notice required by this paragraph; (3) the failure by Lessee to perform any of the provisions of this Lease and any Exhibits attached hereto to be performed by Lessee, other than described in Paragraph 12 14.A(2) above, if the failure to perform continues for a period of thirty (30) days after written notice thereof has been given to Lessee. If the nature of Lessee's default is such that more than thirty (30) days are reasonably required for its cure, then Lessee shall not be in default if Lessee commences the cure within said thirty (30) day period and thereafter diligently prosecutes the cure to completion; or (4) the failure of Lessee to provide Lessor with all relevant information regarding the total consideration paid in conjunction with any transfer of this Lease; (6) the making by Lessee of any general assignment, or general arrangement for the benefit of creditors; the filing by or against Lessee of a petition to have Lessee adjudged a bankrupt or a petition for reorganization or arrangement of any law relating to bankruptcy unless the same is dismissed within sixty (60) days; the appointment of a trustee or receiver to take possession of substantially all of Lessee's assets located at the Premises or of Lessee's interest in the Lease, where possession is not restored to Lessee within thirty (30) days; or the attachment, execution or other judicial seizure of substantially all of Lessee's assets located at the Premises or of Lessee's interest in the Lease, where such seizure is not discharged within thirty (30) days. Notices given under this Paragraph 14.A shall specify the alleged default and the applicable lease provisions, and shall demand that Lessee perform the provisions of this Lease or pay the rent that is in arrears, as the case may be, within the applicable period of time. No such notice shall be deemed a forfeiture or a termination of this Lease unless Lessor so elects in the Notice. B. Landlord's Remedies. In the event of any default by Lessee as defined in Paragraph 14.A, Lessor may, in addition to any rights or remedies permitted by law, do the following: (1) Terminate Lessee's right to possession of the Leased Premises by any lawful means, in which case this Lease shall terminate and Lessee shall immediately surrender possession of the Premises to Lessor. In such event, Lessor shall be entitled to recover from Lessee all amounts to which Lessor is entitled pursuant to Section 1951.2 of the California Civil Code, or any other provision of law, including, without limitation, the following: (a) The worth at the time of award of the amount by which the unpaid rent and additional rent for the balance of the term after the time of award exceeds the amount of the loss than Lessee proves could be reasonably avoided; and (b) any other amount necessary to compensate Lessor for all detriment proximately caused by Lessee's failure to perform obligations pursuant to this Lease or which in the ordinary course of things would be likely to result from the breach, including, without limitation, the cost of recovering possession, expenses of reletting (including necessary repair, renovation and alteration) reasonable attorneys' febs, and any other reasonable costs. The "worth at the time of award" of all rental amounts other than that referred to in clause (i) above shall be computed by allowing interest at the rate of ten percent (10%) per annum from the date amounts accrue to Lessor. The worth at the time of award of the amount referred to in clause (1) shall be computed by discounting such amount at one percentage point above the discount rate of the Federal Reserve Bank of San Francisco at the time of award. (2) Without terminating or affecting the forfeiture of this Lease or, in the absence of express written notice of Lessor's election to do so, relieving Lessee of any obligation pursuant to this Lease, Lessor may, but need not, relet all or a portion of the Premises at any time, or from time to time, and on such terms and conditions as Lessor, at its sole discretion, deems appropriate. Whether or not the Premises are relet, Lessee shall pay all amounts required by this Lease up to the date that Lessor terminates Lessee's right to 13 possession of the Premises. Lessee shall make such payments at the time specified in the Lease and Lessor need not wait until termination of the Lease to recover sums due by legal action. If Lessor relets all or a portion of the Premises, the reletting shall not relieve Lessee of any obligation pursuant to this Lease; provided, however, Lessor shall apply the rent or other proceeds actually collected by virtue of the reletting against amounts due from Lessee. Lessor may execute any agreement reletting all or a portion of the leased premises and Lessee shall have no right to collect any proceeds due Lessor by virtue of any reletting. Lessor shall not, by any reentry or reletting or other act, be deemed to: (a) Have accepted any surrender by Lessee of this Lease or the leased premises; (b) have terminated this Lease; or (c) have relieved Lessee of any obligation pursuant to this Lease unless Lessor has given Lessee express written notice of Lessor's election to do so. (3) Lessor may terminate this Lease by express written notice to Lessee of its election to do so. The termination shall not relieve Lessee of any obligation which has accrued prior to the date of termination. In the event of termination, Lessor shall be entitled to recover the amount specified in Paragraph 143(1). C. Default By Lessor. Lessor shall not be in default unless Lessor fails to perform obligations required of Lessor within a reasonable time, but in no event later than thirty (30) days after written notice by Lessee to Lessor specifying wherein Lessor has failed to perform such obligation. If the nature of Lessor's obligation is such that more than thirty (30) days are required for performance, then Lessor shall not be in default if Lessor commences performance within such thirty (30) day period and thereafter diligently prosecutes the same to completion. D. Stay of Obligations. Neither party shall be under any obligation to perform or comply with its obligations pursuant to this Lease after the date of any default by the other party. E. Determination of Rental Value. In any action or unlawful detainer commenced by Lessor, the reasonable rental value of the Leased Land shall be deemed to be the amount of rent and additional rent (such as reimbursement for costs of Infrastructure improvements or the payment of taxes or assessments) for the period of the unlawful detainer, unless Lessor/Lessee shall prove to the contrary by competent evidence. F. Waiver of Rights. The failure or delay of either party to exercise any right or remedy shall not be construed as a waiver of such right or remedy or any default by the other party. Lessor's acceptance of any rent shall not be considered a waiver of any preexisting breach of default by Lessee other than the failure to pay the particular rent accepted regardless of Lessor's knowledge of the preexisting breach of default at the time rent is accepted. G. Waiver of Right of Redemption. Lessee waives any right of redemption or relief from forfeiture pursuant to Code of Civil Procedure Sections 1174 and 1179 and/or pursuant to any existing or future statutory or decisional law in the event Lessee is evicted or Lessor takes possession of the Premises by reason of Lessee's default. 15. SURRENDER OF POSSESSION UPON EXPIRATION OR TERMINATION. A. Surrender of Premises. Upon the expiration or termination of this Lease, Lessee agrees to peaceably deliver possession of, and agrees to vacate without contest, legal or otherwise, the Leased Land. Lessor, at its sole discretion, may record a document evidencing the expiration or termination of the leasehold interest. Lessee waives any right to receive relocation assistance or similar form of payment. 14 16. B. Removal of Improvements. Upon the expiration of the term of this Lease, and on condition that Lessee is not then in default of any of the provisions of this Lease, Lessee shall have the right to remove from the Leased Land all buildings and improvements built or installed on the Leased Land. Removal of any building or improvement shall be at the sole cost and expense of Lessee and removal must be complete no later than ninety (90) days after expiration of the term of this Lease. Lessee shall fill all excavations and remove all foundations, debris and other parts of the buildings or improvements remaining after removal and surrender possession of the Premises to Lessor in a clean and orderly condition. In the event any of the buildings and improvements are not removed within the time provided in this Paragraph 15.13, they shall become the property of Lessor without the payment of any consideration. EMINENT DOMAIN. A. Definitions of Terms. (1) The term "total taking" as used in this Section 16 shall mean the taking of the entire Premises under the power of eminent domain or the taking of so much of the Leased Land as to prevent or substantially impair the use thereof by Lessee for the residential purposes. (2), The term partial taking" shall mean the taking of a portion only of the Premises which does not constitute a total taking as defined above. (3) The term "taking" shall include a voluntary conveyance by Lessor to an agency, authority or public utility under threat of a taking under the power of eminent domain in lieu of formal proceedings. (4) The term "date of taking" shall be the date upon which title to the Premises or portion thereof passes to and vests in the condemnor. B. Effect of Taking. If, during the term hereof, there shall be a total taking or partial taking under the power of eminent domain, then the leasehold estate of the Lessee in and to the Leased Land or the portion thereof taken shall cease and terminate as of the date of taking of said Leased Land. If this Lease is so terminated in whole or in part, all rentals and other charges payable by Lessee to Lessor hereunder and attributable to the Leased Land or portion thereof taken shall be paid by Lessee up to the date of taking by the condemnor, and the parties shall thereupon be released from all further liability in relation thereto. C. Allocation of Award - Total Taking. All compensation and damages awarded for the total taking of the Premises and Lessee's leasehold interest therein shall be allocated as follows: (1) The Lessor shall be entitled to an amount equal to the sum.of the following: (a) The fair market value of the Premises as improved (exclusive of the dwelling and appurtenances to such dwelling) as of the date of taking, discounted by multiplying such fair market value by the factor for the present worth of one dollar ($1.00) at nine percent (9%) per annum compound interest for the number of years remaining from the date of taking to the date of the expiration of the term of this Lease; and (b) The present worth of rents due during the period from the date of taking to the date of the expiration of the term of this Lease, computed by multiplying the annual rent then payable by the factor for the present worth of one dollar ($1.00) per annum at nine percent (9%) per annum compound interest (Inwood Coefficient) for the number of years in such period. (2) The Lessee shall be entitled to the amount remaining of the total award after deducting therefrom the sums to be paid to Lessor as hereinafter provided. 15 D. Allocation of Award - Partial Taking. All compensation and damages awarded for the taking of a portion of the Leased Premises shall be allocated and divided as follows: (1) The Lessor shall be entitled to an amount equal to the sum of the following: (a) The proportionate reduction of the fair market value of the Premises as improved (exclusive of the dwelling and appurtenances to such dwelling) as of the date of taking, discounted by multiplying such proportionate reduction in fair market value by the factor for the present worth of one dollar ($1.00) at nine percent (9%) per annum compound interest for the number of years remaining from the date of taking to the date of expiration of the term of this Lease; and (b) The present worth of the amount by which the rent is reduced computed by multiplying the amount by which the annual rent is reduced by the factor for the present worth of $1.00 per annum at 9% per annum compound interest (Inwood Coefficient) for the number of years remaining from the date of taking to the date of expiration of the term of this Lease. (2) The Lessee shall be entitled to the amount remaining of the total award after deducting therefrom the sums to be paid to Lessor as hereinabove provided. E. Reduction of Rent on Partial Taking. In the event of a partial taking, the rent payable by Lessee hereunder shall be adjusted from the date of taking to the date of the expiration of the term of this Lease. Such rental adjustment will be made by reducing the basic rental payable by Lessee in the ratio that the Fair Market Rental Value of the Premises at the date of taking bears to the Fair Market Rental Value of the Premises immediately thereafter. 17. ATTORNEYS' FEES. Should either party be required to employ counsel to enforce the terms, conditions and covenants of this Lease, the prevailing party shall recover all reasonable attorneys' fees and charges (and court costs if applicable) incurred therein, whether or not court proceedings were commenced. 18. REMEDIES CUMULATIVE. The rights, powers, elections and remedies of the Lessor or Lessee contained in this Lease shall be construed as cumulative and no one of them shall be considered exclusive of the other or exclusive of any rights or remedies allowed by law, and the exercise of one or more rights, powers, elections or remedies shall not impair or be deemed a waiver of Lessor's or Lessee's rights to exercise any other. 19. NO WAIVER. No delay or omission of either party to exercise any right or power arising from any omission, neglect or default of the other party shall impair any such right or power or shall be construed as a waiver of any such omission, neglect or default on the part of the other party or any acquiescence therein. No waiver of any breach of any of the terms, covenants, agreements, restrictions or conditions of this Lease shall be construed as a waiver of any succeeding breach of the same or of any of the terms, covenants, agreements, restrictions or conditions of this Lease. 20. COMPLIANCE WITH LAWS. Lessee covenants and agrees to comply with all rules, regulations, statutes, ordinances and laws of the State of California, County of Orange, City of Newport Beach, or any other governmental body or agency having lawful jurisdiction over the Leased Land. 21. NOTICES. 16 I • Any notice or notices provided for by this Lease or by law, to be given or served by Lessee, may be given or served by mail, registered or certified, with postage prepaid, on the City of Newport Beach, addressed to the Mayor, City Manager, or City Clerk, 3300 Newport Boulevard, P.O. Box 1768, Newport Beach, California 92659-1768, or at such other address as may be hereafter furnished to Lessee in writing. If notice is intended to be served by Lessor on Lessee, it may be served either: A. By delivering a copy to the Lessee personally; or B. By depositing the Notice in the United States Mail, registered or certified, with postage prepaid, to the residence or business address furnished by Lessee; or C. If the Lessee is absent from the Leased Land by leaving a copy with some person of suitable age and discretion who may be occupying the Leased Land; or D. If no one can be found, then by affixing a copy of the notice in a conspicuous place on the Premises and also sending a copy through the mail addressed to the Lessee. Such service upon Lessor or Lessee shall be deemed complete upon the earlier of (i) actual delivery, or (ii) the expiration of seventy-two (72) hours from and after the deposit in the United States mail of such notice, demand or communication. 22. HOLDING OVER. This Lease shall terminate and become null and void without further notice upon the expiration of the term of this Lease. Any holding over by Lessee after expiration of the term shall not constitute a renewal of this Lease or give Lessee any rights in or to the Premises except as expressly provided in this Section. The parties agree this Lease cannot be renewed, extended, or in any manner modified except in a writing signed by all parties. However, if Lessee, or anyone claiming under Lessee, shall remain in possession of the Premises after expiration of the term of this Lease without any agreement in writing between the parties and Lessor accepts rent from Lessee, then Lessee shall be deemed a tenant from month -to -month subject to the provisions of this Lease insofar as they may be applicable to a month -to -month tendency. The month -to -month tendency may be terminated by Lessor or Lessor upon thirty (30) days' prior written notice to the other. 23. QUIET ENJOYMENT. Lessor covenants and agrees that Lessee, upon paying the rent set forth herein and observing and keeping all covenants and agreements to be observed or kept by Lessor hereunder, shall quietly have and enjoy the Leased Land during the term of this Lease without hindrance or molestation by anyone claiming by or through Lessor. 24. SEVERABILITY. If any term or provision of this Lease shall, to any extent be invalid or unenforceable, the remainder of this Lease shall not be affected thereby, and each term and provision of this Lease shall remain valid and enforceable to the fullest extent permitted by law. 25. MISCELLANEOUS. A. Representations. Lessee agrees that no representations as to the Premises have been made by Lessor or by any person or agent acting for Lessor. Lessor and Lessee agrees and acknowledges that this document contains the entire agreement of the parties, that there are no verbal agreements" representations, warranties or other understandings affecting this agreement, and Lessor and Lessee, as a material part of the consideration of this Lease, waives all claims 17 against the other for recision, damages, or otherwise by reason of any alleged covenant, agreement or understanding not contained in this Lease. B. Inurement. Each and all of the covenants, conditions and agreements herein contained shall,' in accordance with the context, inure to the benefit of Lessor and Lessee and apply to and bind Lessor and Lessee, as the case may be, their respective heirs, legatees, devisees, executors and administrators, successors, assigns, licensees, permittees, or any person who may come into possession or occupancy of said Leased Land or any part thereof in any manner whatsoever. Nothing In this paragraph shall in any way alter the provisions herein contained against assignment or subletting. C. Joint Several Liability. If'Lessee consists of more than one person, the covenants, obligations and liabilities of Lessee pursuant to this Lease shall be the joint and several covenants, obligations and liabilities of such persons. D. Captions. The section and paragraph captions used in this Lease are for the convenience of the parties and shall not be considered in the construction or interpretation of any provision. E. Gender. In this Lease, the masculine gender includes the feminine and neuter and the singular number includes the plural whenever the context so requires. M, IN WITNESS WHEREOF, the parties have caused this Lease to be executed as of the date first above written. APPROV D AS TO FORM: CI ATTORNEY LESSOR: CITY OF NEWPORT BEACH, By. �. Ti e: CITY MANA ER / IZ4� -21 Cristina M. Steelberg 19 ) STATE OF CALIFORNIA )ss. COUNTY OF G3 j-g ,n q �e_ } 0n� 1-7, lobo 7 before me, 'A� Zs Lle)Y4 ^ Nato-l'- Pu� k IL personally appeared C k &d C-�I-e-a-t kt-ey a personally known to me (or 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/sbefwey executed the same in his/19e4d-e.ir authorized capacity(ies), and that by his/he4their signatureN on the instrument the person(s�or the entity upon behalf of.which the person(v4acted, executed the instrument. WITNESS my hand and official seal. Signature JAMES LOREN Commission # 1186281 NotaryPublic- California y Orange County SMYCOMM. Expires JulS, 2002 (This area for official notarial seal) • STATE OF CALIFORNIA }ss. COUNTY OF ORAWR } On May 17th 2000 , before me, Jean Hickman r personally appeared Cristina M. SteelberE , personally known to me (or 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. WITNESS my hand and official seal. 0 JEAN HICIQ�N MOTARYPUSUIC-CAUFORNIA f COMMISSION 0 121661E c ORANGE COUNTY (This area for official nolarlai seal) m X ' 17 NIAP OF -REACON BAY • EXHIBIT B Beacon Bay Lot 22 described as follows: Lot 22 and that portion of Lot H fronting Lot 22 and extending Northward 32 feet, and that portion of Lot 1 fronting Lot 22 and extending Southward 28 feet to the U. S. bulkhead line, as shown on the map filed in Book 9, Pages 42 and 43 of Record of Surveys, in the Office of the County Recorder, County of Orange, State of California. SumyARY OF SALIENT FACTS AND CONCLUSIONS - continued SUMMARY OF VALUE INDICATIONS: Existing (lstyear) Unencumbered Fair Market Contract Effective Lot No. Fee Lot Value Rental Value"' Rent Net Rent Water Front Lots ' A $1,330,000 $48,520 $23,125.08 $31,940.00 B $1,200,000 $43,320 $12,506.85 $22,270.00 C $1,031,000 $37,560 $16,625.04 $22,490.00 1 $947,000 $34,200 $8,020.80 $15,030.00 2 $1,131,000 $41,640 $8,825.40 $17,950.00 3 $1,263,000 $46,920 $24,250.08 $31,560.00 4 $1,318,000 $49,120 $10,458.96 $21,260.00 5 $1,341,000 $50,120 $20,612,•.04 $29,840.00 6 $1,386,000 $51,680 $25,000.00 $34,260.00 7 $1,210,000 $44,800 $24,999.96 $31,870.00 8 $1,177,000 $43,480 $43,750.00 $43,480.00 9 $1,298,000 $47,840 $42,500.04 $44,350.00 10 $1,342,000 $49,600 $24,999.96 $33,540.00 11 $1,122,000 $41,290 $9,020.52 $17,020.00 v 12 $1,100,000 $40,400 $14,250.00 $22,190.00 13 $1,100,000 $40,400 $23,625.00 $29,450.00 14 $1,243,000 $45,640 $10,312.56 $19,690.00 15 $1,265,000 $46,520 $10,836.47 $20,240.00 16 $1,067,000 $39,080 $8,508.49 $16,480.00 17 $1,067,000 $39,080 $16,250.04 $21,750.00 18 $1,067,000 $39,080 $8,508.48 $16,480.00 19 $1,243,000 $45,640 $10,020.02 $19,500.00 20 $1,147,000 $42,320 $8,727.84 $17,910.00 21 $1,058,000 $38,760 $20,224.50 $26,660.00 22 $1,036,000 $37,880 $41,250.00 $37,880.00 ES 1 $1,037,000 $37,890 $28,749.96 $31,920.00 ES 2 $1,037,000 $37,880 $24,625.00 $29,220.00 Subtotals: $31,563,000 $1,i60,640 $519,983.08 $705,220.00 SUMMARY OF SALIENT FACTS AND CONCLUSIONS - continued Existing (lstyear) Unencumbered Fair Market Contract Effective Lot No. Fee Lot Value Rental Value Rent Net Rent Interior Lots 23 $478,000 $14,487 $2,782.32 $6,297.00 24 $501,000 $15,237 $6,125.04 $8,897.00 25 $509,000 $15,537 $3,399.12 $6,977.00 26 $511,000 $15,612 $3,417.72 $6,942.00 27 $519,000 $15,912 $3,436.44 $7,102.00 28 $542,000 $16,775 $4,137.72 $7,785.00 29 $518,000 $15,650 $15,375.00 $15,470.00 30 $510,000 $15,462 $3,551.16 $7,102.00 31 $517,000 $15,725 $8,750.00 $10,515.00 32 $520,000 $15,837 $3,588.,48 $7,217.00 33 $529,000 $16,137 $3,607.08 $7,307.00 34 $589,000 $18,200 $4,454.64 $8,490.00 35 $559,000 $17,000 $3,776.28 $7,780.00 36 $548,000 $16,662 $3,795.00 $7,672.00 37 $517,000 $15,725 $14,625.00 $15,005.00 38 $520,000 $15,837 $3,780.36 $7,967.00 39 $528,000 $16,137 $9,125.04 $11,557.00 40 $588,000 $18,162 $11,133.60 $13,572.00 41 $513,000 $15,500 $3,719.64 $7,300.00 42 $548,000 $16,662 $3,795.00 $7,672.00 43 $556,000 $16,962 $11,250.00 $13,232.00 44 $558,000 $17,037 $3,932.20 $7,787.00 45 $565,000 $17,300 $4,056.84 $7,990.00 46 $588,000 $18,162 $4,454.64 $8,492.00 47 $539,000 $16,475 $3,459.36 $7,365.00 48 $551,000 $16,775 $6,249.96 $9,305.00 49 $520,000 $15,837 $3,551.16 $7,197.00 50 $523,000 $15,950 $3,569.76 $7,240.00 51 $520,000 $15,837 $3,780.36 $7,857.00 52 $528,000 $16,137 $12,750.00 $13,927.00 53 $589,000 $18,162 $4,479.00 $8,492.00 54 $530,000 $15,987 $3,344.88 $7,227.00 55 $559,000 $17,075 $10,625.04 $12,965.00 56 $567,000 $17,375 $3,603.96 $7,915.00 57 $546,000 • $16,737 $3,551.16 $7,427.00 58 $528,000 $16,137 $6,750.00 $10,007.00 59 $525,000 $16,025 $10,125.00 $12,175.00 60 $533,000 $16,325 $3,533.88 $7,315.00 ORM ■_ : r_ !x w w :J SUMMARY OF SALIENT FACTS AND CONCLUSIONS - continued Unencumbered Fair Market Lot No. Fee Lot Value Rental Value Interior Lots - continued 61 $588,000 ES 3 $474,000 ES 4 $467,000 ES 5 $470,000 ES 6 $468,000 ES 7 $461,000 ES 8 $471,000 SubtotalInt.: $23,786,000 Subtotal W.F.: $31,563,000 Grand Totals: $55,349,000 u $18,162 $14,225 $13,962 $14,075 $14,000 $13,737 $13,925 $724,637 Existing Contract Rent $4,436.16 $8,750.04 $3,021.96 $10,000.08 $2,982.96 $2,966.04 $3,118.08 $254,617116 (1st year) Effective Net Rent $8,482.00 $10,325.00 $6,322.00 $11,415.00 $6,310.00 $6,057.00 $6,455.00 $397,807.00 $1,160,640 $519,983.08 $705,220.00 $1,885,277 $774,600.24 $1,103,027.00 Dis ribudon of Kents and Tax Advantage between Tidelands ann Uplands* (lstyear) Proportionate Proportionate Annual Amort. Tidelands Effective % % Rent Rent of PV of Tax Tax Lot No. Net Rent Tidelands Uplands Tidelands Uplands Advantage Advantage 1Vaterfront Lots A $31,940.00 10090 0% $31,940 $0 $0 $0 B $22,270.00 10070 0% $22,270 $0 $930 $930 C $22,480.00 100% 0% $22,480 $0 $1,410 $1,410 1 $15,030.00 10090 090 $15,030 $0 $2,080 $2,080 2 $17,950.00 100% 0% $17,950 $0 $2,260 $2,260 3 $31,560.00 10090 0% $31,560 $0 $560 $560 4 $21,260.00 100% 0% $21,260 $0 $2,610 $2,610 5 $28,840.00 100% 0% $28,840 $0 $1,620 $1,620 6 $34,260.00 100% 0% $34,260 $0 $0 $0 7 $31,870.00 95% 5% $30,276 $1,594 $0 $0 8 $43,480.00 50% 50% $21,740 $21,740 $0 $0 9 $44,350.00 5% 95% $2,217 $42,132 $0 $0 10 $33,540.00 0% 100% $0 $33,540 $0 $0 11 $17,020.00 0% 1000/0 $0 $17,020 $3,200 $0 12 $22,190.00 0% 100% $0 $22,190 $1,130 $0 13 $29,450.00 0% 100% $0 $29,450 $0 $0 14 v : $19,690.00 0% 100% $0 $19,690 $2,980 $0 15 $20,240.00 20% 80% $4,048 $16,192 $2,980 $596 16 $16,480.00 95% 5% $15,656 $824 $2,640 $2,508 17 $21,750.00 100% 0% $21,750 $0 $2,420 $2,420 18 $16,480.00 100% 0% $16,480 $0 $2,640 $2,640 19 $19,500.00 100% 070 $19,500 $0 $2,880 $2,880 20 $17,910,00 100% 090 $17,910 $0 $2,470 $2,470 21 $26,660.00 100% 0% $26,660 $0 $0 $0 22 $37,880.00 100% 0% $37,880 $0 $0 $0 ES 1 $31,920.00 100% 050 $31,920 $0 $0 $0 ES 2 $29,220.00 100% 0% $29,220 $0 $0 $0 Waterfront Subtotal; $705,220.00 $500,848 $204,372 $34,710 $24,984 Beacon Bay_616/94 - Page I L � L,.: L. i 'r J Distribution of R• and Tax Advantage between Tidelands and U• ds* - (istyear) Proportionate Proportionate Annual Amort. Tidelands Effective 9n % Rent Rent of PV of Tax Tax Lot No. Net Rent Tidelands Uplands Tidelands Uplands Advantage Advantage aterior Lots 23 $6,297.00 0% 100% $0 $6,297 $550 $0 24 $8,897.00 090 100% $0 $8,897 $390 $0 25 $6,977.00 590 95% $349 $6,628 $630 $31 26 $6,942.00 99% 1% $6,873 $69 $710 $703 27 $7,102.00 10090 0% $7,102 $0 $660 $660 28 $7,785,00 10090 0% $7,785 $0 $740 $740 29 $15,470.00 090 100% $0 $15,470 $0 $0 30 $7,102.00 0% 100% $0 $7,102 $580 $0 31 $10,515.00 3090 7090 $3,154 $7,361 $660 $198 32 $7',217.00 10090 090 $7,217 $0 $620 $620 33 $7,307.00 10090 090 $7,307 $0 j $650 $650 34 $8,490.00 100% 0% $8,490 $0 $730 $730 35 $7,780.00 0% 100% $0 $7,780 $580 $0 36 $7,672.00 090 100% $0 $7,672 $590 $0 37 $15,005.00 5170 95% $750 $14,255 $0 $0 38 $7,967.00 99% 1% $7,887 $80 $0 $0 39 u $11,557.00 100% 0% $11,557 $0 $0 $0 40 $13,572.00 10090 090 $13,572 $0 $0 $0 41 $7,300.00 0% 100% $0 $7,300 $510 $0 42 $7,672.00 090 10090 $0 $7,672 $590 $0 43 $13,232.00 0% 100% $0 $13,232 $0 $0 44 $7,787.00 090 100% $0 $7,787 $630 $0 45 $7,990.00 15% 85% $4198 $6,792 $660 $99 46 $8,492.00 0% 100% $0 $8,492 $720 $0 47 $7,365.00 0% 100% $0 $7,365 $610 $0 48 $9,305.00 0% , 10090 $0 $9,305 $600 $0 49 $7,197.00 0% 100% $0 $7,197 $620 $0 50 $7,240.00 0% 100% $0 $7,240 $630 $0 51 $7,857.00 090 100% $0 $7,857 $110 $0 52 $13,927.00 0% 100% $0 $13,927 $0 $0 53 $8,492.00 0% 100% $0 $9,492 $730 $0 54 $7,227.00 090 100% $0 $7,227 $500 $0 55 $12,865.00 090 100% $0 $12,865 $0 $0 56 $7,915.00 0% 10090 $0 57,915 $470 $0 57 $7,427.00 0% 10090 $0 $7,427 $700 $0 58 $10,007.00 0% 100% $0 $10,007 $0 $0 59 $12,175.00 0% 100% $0 $12,175 $0 $0 60 $7,315.00 0% 100% $0 $7,315 $660 $0 Beacon Bay 616194 • Page 2 i Exhihit -i1 Distribution of Rents and Tax Advantage between Tidelands and Uplands* (Ist year) Effective Lot No. Net Rent tenor Lots - continued 61 $8,482.00 ES 3 $10,325.00 ES 4 $6,322.00 ES 5 $11,415.00 ES 6 $6,310.00 ES 7 $6,057.00 ES 8 $6,455.00 terior Lots tbtotal: $397,807.00 Id Waterfront $705,220.00 -and Total: $1,103,027.00 of Total: 10090 v Proportionate Proportionate Annual Amort. Tidelands % % Rent Rent of PV of Tax Tax Tidelands Uplands Tidelands Uplands Advantage Advantage 070 100% $0 $8,482 $720 $0 100% 0% $10,325 $0 $320 $320 100% 0% $6,322 $0 $500 $500 85% 15% $9,703 $1,712 $0 $0 0% 100% $0 $6,310 $500 $0 0% 100% $0 $6,057 $650 $0 0% 100% $0 $6,455 $410 $0 $109,592 $288,215 $19,930 $5,251 $500,848 $204,372 $34,710 $24,984 $610,440 $492,587 $54,640 $30,235 55% 45% 100% 55% affective Net Rents consider tax advantage. Discount rate for present value of annual vantage is 6%. Rate for amortization of advantage is 7%. Rent and advantage ;ures are from 10/8193 appraisal. Lots 3, 7, and 21 have been adjusted for new contract rent real estate taxes. Beacon Bay 616194 - Page 3 t CITY OF NEWPORT BEACH Office of the City Manager (949)644-3002 August 18, 2004 Lisa Shimoda Washington Mutual Bank 17861 Von Karman Irvine, CA 92614 Subject: 22 Beacon Bay Loan No. 03-664-068241-068-3 Dear Ms. Shimoda: Enclosed please find an executed Lessor's Consent and Agreement for the above -referenced property. This document should be recorded and returned to the City Manager's office. If you have any questions, please call me. Shirley Enclosure Assistant City Hall • 3300 Newport Boulevard • Post Office Box 1768 ,, Newport Beach, California 92658-8915 • www.city.newport-beach.ca.us City Manager's Office City of Newport Beach P.O. Box 1768 Newport Beach, CA 92658-8915 LESSOR'S CONSENT AND AGREEMENT Loan No: 03-0664-068241-068-3 Recitals Borrower, referred to in this Agreement as "Lessee" and as more particularly described in Exhibit A, has applied for a loan from Washington Mutual Bank, FA ("Lender) to be secured by leased property, as such property is more particularly described in Exhibit A ('Property"). Lessee currently holds or will acquire upon consummation of the pending transaction, a leasehold interest under the lease described in Exhibit A ("Lease") in which the undersigned ("Lessor") is the lessor. Agreement 1. The information on Exhibit A is incorporated herein by reference. 2. The property is subject to the Lease described in Exhibit A. The lease documents described in Exhibit A constitute the entire agreement of Lessee and Lessor regarding the Property. The lease is in full force and effect and unmodified. All rents and other charges due have been paid, there are no other defaults and the Lease is in good standing. Lessor has no knowledge of any facts which now or after the passage of time or the giving notice, or both, would constitute a default under the Lease. The payments required under the Lease are set forth in Exhibit A. Payments and notices to Lessor are deliverable as set forth in Exhibit A. Lessor has no claims outstanding against Lessee in connection with the Property. 1 Loan No: 03-0664-068241-068-3 3. Lessor consents to the granting of a security interest in Lessee's interest in the lease to Lender. Lessor agrees to send concurrently to Lender copies of any notices sent to Lessee pertaining to Lessee's default or Lessor's intent to terminate the Lease or any part thereof by certified U.S. mail. No modification or termination of the Lease agreed upon by Lessee shall be effective without the express written consent of Lender. Notice will be provided to Lender by certified mail at the following address: Washington Mutual Bank, 17861 Von Karman, Irvine, CA 92614, referencing the Loan Number set forth on Exhibit A or at such other address given to the undersigned by Lender, at the same time as the notices are sent to Lessee. 4. Should the Lease be terminated for any reason prior to expiration of its stated term, Lessor shall, upon written request by Lender to Lessor made within sixty (60) days after such termination, enter into a new lease ("New Lessee') with Lender as the Lessee. The New Lease shall have a term equal to the remainder to the stated term of the Lease has it not been terminated prior to the end its stated term. The New Lease shall have the same covenants, conditions and agreements (except for any requirements which have been satisfied by Lessee prior to termination) as are contained in the lease. Lessor shall be required to enter into the New Lease only if Lender has remedied and cured all monetary defaults under the lease and has cured or has commenced and is diligently pursing completion of the cure of all non -monetary defaults of Lessee susceptible to sure any party other than by the original Lessee. 5. This consent and agreement shall not operate to change or supercede the terms & conditions of the lease in the event of a conflict, the terms of the lease shall prevail. Lessor 2 C, J Loan No: 03-0664-068241-068-3 STATE OF CALIFORNIA COUNTY OF lJ'T On ��5� �3�12�yi before me,`1 P)vv.,t�oh personally appeared personally known to me to be the person whose name is subscribed to the within instrument and acknowledged to me that 9she\they executed the same in hi er\their authorized capacity (1)4), and that by ii her/their signature* on the instrument the person or the entity upon behalf of which the person acted, executed the instrument. WITNESS my hand and official seal Signature 0� �✓' Notary Public in and for the State of CATHY FISHER Commission 11341 M9 z Notary Public. Caldomia Omnge County My Comm. Expires Feb 21, 2006 y EXHIBIT A — LESSOR'S CONSENT AND AGREEMENT Loan No. 03-0664-068241-068-3 Unit No. 1. Borrower's (Lessee) Name: Chad and Cristina Steelberg 2. Property Address: 22 Beacon Bay, Newport Beach, CA 92660 3. Property's Legal Description (if a metes & bounds attach legal): See Attached Cl E Developer/Condo Homeowners Assoc. (Lessor) Name: Beacon Bay Lease (including all amendments and dates): See Attached 6. Borrower (Lessee's) Current Monthly Lease Payment $3,875.00 Payments are current (circle either(Yes r No). 7. Deliver notices and payments to Lessor at: City Manager's Office, City of Newport Beach, P.O. Box 1768, Newport Beach, CA 92658-8915 8. Term of Lease: 50 Years; commenced on May 19, 2000; Expires on July 1, 2044 If applicable: Pursuant to the Lease, Lessee has the right, at its option, to renew the term of the Lease for N/A consecutive renewal terms of N/A years each. m ATTACHMENT TO EXHIBIT A — LESSOR'S CONSENT AND AGREEMENT Property Description Lot 22 and that portion of Lot H fronting Lot 22 and extending Northward 32 feet, and that portion of Lot 1 fronting Lot 22 and extending Southward 28 feet to the U.S. bulkhead line, as shown on the map filed in Book 9, Pages 42 and 43 of Record of Surveys in the Office of the County Recorder, County of Orange, State of California. 1 .0 OCTOBER 15, 2001 PER THE LENDER, WASHINGTON MUTUAL, THIS FORM MUST BE SIGNED BY THE LESSOR, CITY OF NEWPORT BEACH, A CHARTERED MUNICIPAL CORPORATION IN FRONT OF A NOTARY PUBLIC. THIS IS A REQUIREMENT TO FUND THE LOAN. THANK YOU. 33O'D cu'4 !I •— 'f' C; (,L of 'zn 4 0 RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: City Managers Office City of Newport Beach P.O. Box 1768 Newport Beach, CA 92658-8915 THIS SPACE FOR RECORDWS USE ONLY LESSOR'S CONSENT AND AGREEMENT Loan No.: no J�/2 � 019-q Recitals Borrower, referred to in this Agreement as "Lessee" and as more particularly described in Exhibit A, has applied for a loan from ❑ Washington Mutual Bank 13 Washington Mutual Bank fsb Washington Mutual Bank, FA ("Lender") to be secured by leased property, as such property is more particularly described in Exhibit A ("Property"). Lessee currently holds or will acquire upon consummation of the pending transaction, a leasehold interest under the lease described in Exhibit A ("Lease") in which the undersigned ("Lessor") is the lessor. Agreement 1. The information on Exhibit A is incorporated herein by reference. 2. The Property is subject to the Lease described in Exhibit A. The lease documents described in Exhibit A constitute the entire agreement of Lessee and Lessor regarding the Property. The Lease is in full force and effect and unmodified. All rents and other charges due have been paid, there are no defaults and the Lease is in good standing. Lessor has no knowledge of any facts which now or after the passage of time or the giving of notice, or both, would constitute a default under the Lease. The payments required under the Lease are set forth in Exhibit A. Payments and notices to Lessor are deliverable as set forth in Exhibit A. Lessor has no claims outstanding against Lessee in connection with the Property. Page 1 of 4 12802 (RDY i.EO) DEACON DAY Loan ` 61 y 3. Lessor consents to the granting of a security interest in Lessee's interest in the Lease to Lender. Lessor agrees to send concurrently to Lender copies of any notices sent to Lessee pertaining to Lessee's default or Lessor's intent to terminate the Lease or any part thereof by certified U.S. mail. No modification or termination of the Lease agreed upon by Lessee shall be effective without the express written consent of Lender. Notice will be provided to Lender by certified mail at the following address: Washington Mutual Bank, Collection Support MS: N010201, 9451 Corbin Ave, Northridge, CA 91$24, referencing the Loan Number set forth on Exhibit A or at such other address given to the undersigned by Lender, at the same time as the notices are sent to Lessee. 4. Should the Lease be terminated for any reason prior to expiration of its stated term, Lessor shall, upon written request by Lender to Lessor made within sixty (60) days after such termination, enter into a new lease ("New Lease") with Lender as the lessee, The New Lease shall have a term equal to the remainder of the stated term of the Lease had it not been terminated prior to the end of its stated term. The New Lease shall have the same covenants, conditions and agreements (except for any requirements which have been satisfied by Lessee prior to termination) as are contained in the Lease. Lessor shall be required to enter into the New Lease only if Lender has remedied and cured all monetary defaults under the Lease and has cured or has commenced and is diligently pursuing completion of the cure of all nonmonetary defaults of Lessee susceptible to cure by any party other than by the original Lessee. S. This consent & agreement shall not operate to change or supercede the terms & conditions of the lease and in the event of a conflict, the terms of the lease shall prevail. Y ^ o, Lessor Page 2 of 4 33802 OWY �) aEACON RAY , State of California� County of--11QQLLppCC����''6� On 000 )J UPbefore me, LALM( V• /90 ( ATE. A (NAMEITITLE OF OFFICER•...; JANE DOE, NOTARY PUBLIC') personally appeared r_lrr INAMEIS) OF SIGNERISI) Xpersonally known to me -OR- ❑ LEIIANI V. INES - }. `® Commission # 1170960 z § m No`aryPublic- California Orange County My Comm. Expires Jon25,2002 proved to me on the basis of satisfactory evidence to be the rson(�j1 whose name) is/ re ubscrlbed to e within instrument and knowledged to me that 'hh�V he/they cuted the same in hi her/their authorized c acity(J1W, and that b hi /her/their signature.K) on the instrument the person r, or the entity upon be if of which the person acted, executed instrument. Witness my hand and official seal. (SEAL) V7Awt, � �. S `'iOI_�> (SIGNATURE OF NOTARYI ATTENTION NOTARY The information requested below and in the column to the right is OPTIONAL. Recording of this document is not required by law and is also optional. It could, however, prevent fraudulent attachment of this certificate to any unauthorized document. THIS CERTIFICATE Title or Type of Document MUST BE ATTACHED TO THE DOCUMENT Number of Pages Date of DESCRIBED AT RIGHT: SiGnerlal Other Than Named Above WOLCOTTS FORM e3237 Rev. 3.94 Iptle..laer 9•2A) 01994 WOLCOTTS FORMS, INC. ALL PURPOSE ACKNOWLEDGMENT FOR CALIFORNIA WITH SIGNER CAPACITY/REPRESENTATIONnWO FINGERPRINTS RIGHT THUMBPRINT (Optional) CAPACITY CLAIMED BY SIONER(S) OINDIVIDUAL(S) ❑CORPORATE OFFICER(S) ❑PARTNER(S) OLIMITED OGENERAL OATTORNEY IN FACT OTRUSTEE(S) ❑GUARDIAN/CONSERVATOR OOTHER' SIGNER IS REPRESENTING: (Name of Peraonla) or Entitylwa) RIGHT THUMBPRINT (Optionall CAPACITY CLAIMED BY SIONERIS) OINDIVIDUAL(S) OCORPORATE OFFICER(S) (TITLES) ❑PARTNER(S) ❑LIMITED ❑GENERAL OATTORNEY IN FACT OTRUSTEE(S) ❑GUARDIAN/CONSERVATOR ❑OTHER: SIGNER IS REPRESENTING: (Name of Person(s) or Entity(iee) P3ofI 7 III67775 II 32 I7 I 8 EXHIBIT A - TO LESSOR'S CONSENT AND AGREEMENT Loan No. W�� MUM 4, Developer/Condo Homeowners Assoc. (Lessor) Name: P[Z _ bcdA S. Lease (including all amendments and dates):L�6�(( 6. Borrower (Less e's) Current Monthly Lease Payment: S U. Payments are current (circle elthe es r No). J/ 7. Deliver notices and payments to Lessor at: 8. Term of Lease: expires on — Years; commenced on If applicable: Purstlant to the Lease, Lessee has the right, at Its Qptio to renew the term of the Lease for U1 _ consecutive renewal terms of IY / ! years each. Page 4 of 4 12Yc3IM 4,09) 3MCON DAY 1. THE A LEASEHOLD AS REFERRED TO AND SUBJECT IN SAID SE. LESSEE: DATED: RECORDED: SCHEDULE A T IN THE LAND THIS REPORT IS: DESCRIBED OR C}ZATED BY THAT CERTAIN UNRECORDED LEASE AS bK THE DOCUMENT NAMED BELOW, FOR THE TERM, AND UPON ALL THE PROVISIONS CONTAINED IN SAID DOCUMENT, AND CITY OF NEWPORT BEACH, A CHARTERED MUNICIPAL CORPORATION CHAD E. STEELBERG AND CRISTINA M. STFLYLBERG, HUSBAND'AND WIFE AS GlOMMUNITY PROPERTY MAY 18, 2000 MAY 19, 2000 AS INSTRUMENT NO. 20000265769, OF OFFICIAL RECORDS '14 EXHIBIT "A" (LEGAL DESCRIPTION) LOT 22 AND THAT PORTION OF LOT H FRONTING LOT 22 AND EXTENDING NORTHWARD 32 FEET, AND THAT PORTION OF LOT 1 FRONTING LOT 22 AND EXTENDING SOUTHWARD 28 FEET TO U.S. BULKHEAD LINE, IN THE CITY OF NEWPORT BEACH, COUNTY OF ORANGE, STATE OF CALIFORNIA, AS SHOWN ON A RECORD OF SURVEY MAP RECORDED IN BOOK 9 PAGS 42 AND 43 OF RECORD OF SURVEYS, IN THE OFFICE OF THE COUNTY RECORDER OF ORANGE COUNTY, CALIFORNIA. 20-45574-03 r �! SECURITYBANK 2101 E. 2f91 Coast Highway D Carona Del Mar, CA 92625 j MARINERS ESCROW e041766 222 ESCROW NO. CIVIC PLAZA 2-2066-MS 4 CIVIC PLAZA, STE. 100 NEWPORT BEACH, CA 92660 ' 714,729.0199 PAY Two Hundred Fifty And 00/100 Dollars TOTHE ORDER OF ! City -of Newport Beach I'm 0178080 1: i 2 2 23 76831: 0 1Lut 30 SO? DO MARINERS ESCROW CIVIC PLAZA Newport Beach, CA 92660 1780E DATE 05/22/00 AMOUNT $ 250.00 PLAZA 1780E Date: 05/22/00 Escrow No, 2-2066-MS Closed: 05/19/00 Check Amount$ 250.00 Funds Due You SELLER: The Caldwell Community Trust established 4-29 Transfer Fee for Beacon Bay Lease PROPERTY: 22 Beacon Bay Newport Beach, CA 92660 Chad E. Steelberg Cristina M. Steelberg We appreciate your business! AM MARINERS ESCROW fW so CIVIC PLAZA City of Newport Beach 3300 Newport Blvd. P. O. Box 1768 Newport Beach, CA 92658-8915 Attn: MARION BROCKMAN Re: 22 Beacon Bay Enclosed please find the following: Our check for $250.00 for transfer fee for Beacon Bay Lease & $3,875.00 for June ground rent. Thank you. 0 4 Civic Plaza, Suite 100 Newport Beach, Califoraia 92660 Phone (949) 729-0199 rax(949) 729.0190 Date: May 22, 2000 Escrow No.: 2-2066-MS Should you have any questions or need any further assistance, please do not hesitate to contact the undersigned. Thank you. Escrow Civic Plaza .ii 0 • CITY OF NEWPORT BEACH OFFICE OF THE CITY MANAGER May 19, 2000 TO: REVENUE DEPARTMENT FROM: MARION BROCKMAN SUBJECT: CHANGE IN OWNERSHIP FOR 22 BEACON BAY A new lease was signed for subject property (22 Beacon Bay) on May 19, 2000 The new monthly rental is $3,875.00. Please bill this amount to the new owners, Chad and Cristina Steelberg, 22 Beacon Bay. Thanks, Marion Brockman AeSh ® MARINERS ESCROW �„�► CIVIC PLAZA May 17, 2000 CITY OF NEWPORT BEACH/CITY HALL 3300 Newport Blvd., Newport Beach, CA., ATTN; MARION BROCKMAN Re: 2-2066-MS Dear Ms. Brockman: 4 Civic Plaza, Suite 100 Newport Beach, California 92660 Phone (949) 729.0199 Pax (949) 729.0190 In connection with 22 Beacon Bay, enclosed please find two executed original leases and Memorandum of Lease. Please expedite the signing of these documents by the City of Newport Beach and call when they are ready for pick-up. We hope to close escrow on Thursday or Friday at the latest so anything you can do to rush this one more time will be appreciated. Also enclosed is a certified copy of the Grant Deed to Steelberg. If you need anything further, please call. We appreciate the opportunity to be of service,to you in this transaction. Should you have any questions, please call us at the telephone number(s) referenced above. Mariners Escrow Civic Plaza <f� Jean Hickman Escrow Officer jh RECORDING REQUESTED BY 0 0 AND WHEN RECORDED MAIL TO: Chad E. Steelberg and Cristina M. Steelberg 22 Beacon Bay Newport Beach, CA., 92660 A.P.N.: CERTIFIED TO BE A TRUE AND CORRECT COPY Of THE ORIGINAL r3CRO1 Order No.: 2001830 Above This Line for Recorder's Use Only Escrow No.: 2-2066-MS GRANT DEED THE UNDERSIGNED GRANTOR(s) DECLARE(sj THAT DOCUMENTARY TRANSFER TAXIS: COUNTY NONE DUE -SUBJECT TO LEASE. Deed being recorded to perfect title. j—j-computed on full Value Of property conveyed, or l[ ]] computed on full value less value of liens or encumbrances remaining at time of sale, unincorporated area; [XXX] City of Newport Beach , and FOR A VALUABLE CONSIDERATION, Receipt of which is hereby acknowledged,. Charles B. Caldwell and J9mberly I{. Caldwell, as Trustee of the Caldwell Community Trust established 4-29-96 hereby GRANT(S) to CHAD E. STE,ELBERG and CRISTINA M. STE'ELBE,RG, husband and wife, as community' property t ALL BUILDING(S) AND IMPROVEMENTSJocated at the following described property in the City of Newport Beach, County of Orange State of California; A LEASEHOLD ESTATE IN AND TO: Lot 22 and that portion of Lot H fronting Lot 22 and extending Northward 32 feet and that portion of Lot I fronting Lot 22 and extending Southward 28 feet to U.S. Bulkhead line, as shown on a Record of Surveys Map recorded in Book 9, Pages 42 and 43 of Record of Surveys in the Office of the County Recorder of Orange County, California. The Caldwell Community Trust as Document Datk ' April 28, 2000 STATE OF CALIFORNIA )SS COUNTY OF ORANGF ) On May 8th. 2000 before me, Tenn Hirkman personally appeared Charles B. Caldwell and Kimberly K. Caldwell personally known tome (or proved tome on die basis of satisfactory evidence) to be die person(s) whose name(s) is/are subscribed to the within Instrument and acknowledged tome that he/she/they executed the same In his/her/their authorized capacity(ies) and that by his/her/their signature(s) on die instrument die person(s) or the entity upon behalf of which the person(s) acted, executed the Instrument. WITNESS my Band and official seal. This area for official notarial seal. F@��JEAN HW�(0MMIIION Ito 21881R8 u ORANGECOUNTY My Comm. Exp. April 20, 2003 0 me' fW) MARINERS ESCROW %„� CIVIC PLAZA City of Newport Beach 3300 Newport Blvd. P. O. Box 1768 Newport Beach, CA 92658-8915 Attn: Marion Brockman Re: 22 Beacon Bay, Newport Beach RE: Escrow #2-2066-MS 4 Civic Plaza, Suite 100 Newport Beach, California 92660 Phone (949)729.0199 Fax (949) 729-0190 Date : April 28, 2000 Escrow No. : 2-2066-MS A check in the amount of $100.00 for processing of the new lease & certified escrow instructions for your records. Thank you. • • `®,MARINERS ESCROW 4Civic Plaza,Suite 100 `lo CIVIC PLAZA 9)729-Newpo199 r,94)California9-0190 Phone (949)729.0199 Pax (949)729-0190 SALE ESCROW INSTRUCTIONS TO: Mariners Escrow Civic Plaza Date: April 26, 2000 Escrow Officer: Marilyn Sauter Escrow Assistant: Escrow Number: 2-2066-MS MARINERS ESCROW CORPORATION, IS LICENSED BY THE STATE OF CALIFORNIA DEPARTMENT OF CORPORATIONS, LICENSE NO. 963-1009, BRANCH NO. (863 1181). Terms of Transaction I have Deposited into Escrow the sum of $ 60,000.00 I will Deposit, prior to close of escrow, the sum of $ 800,000.00 I will Obtain a New First Trust Deed loan in the amount of $ 1,000,000:00 To Complete the Total Consideration of $ 1,860,000.00 The title is presently vested in Charles B. Caldwell and Kimberly K. Caldwell, as Trustees of the Caldwell Community Trust established 4-29-96, (hereinafter referred to as "Seller"). Ryan Steelberg, as Trustee of the C&CS 1999 International Trust dated August 6, 1999, (hereinafter referred to as "Buyer") will hand Mariners Escrow Civic Plaza, (hereinafter referred to as "Escrow Holder") an initial deposit of $60,000.00 and, prior to the close of escrow, will deposit the balance of the cash down payment and any additional funds and instruments necessary to enable Escrow Holder to comply with these instructions, all of which Escrow Holder is instructed to use provided that on or before May 19, 2000, the closing date of escrow, Escrow Holder holds an ALTA-R Owners Policy of Title Insurance with the usual title company's exceptions, with a liability of not less than $1,860,000.00, covering property in the County of Orange, State of California, described as follows: A LEASEHOLD ESTATE IN AND TO: Lot 22 and that portion of Lot H fronting Lot 22 and extending Northward 32 feet and that portion of Lot 1 fronting Lot 22 and extending Southward 28 feet to U.S. Bulkhead line, as shown on a Record of Surveys Map recorded in Book 9, Pages 42 and 43 of Record of Surveys in the Office of the County Recorder of Orange County, California. COMMONLY KNOWN AS: 22 Beacon Bay, Newport Beach, CA 92660 (NOT VERIFIED BY ESCROW HOLDER) SHOVING TITLE VESTED IN: Ryan Steelberg, as Trustee of the C&CS 1999 International Trust dated August 6, 1999 SUBJECT TO: (1) General and Special County and City (if any) Taxes for the current fiscal year, not due or delinquent, including any special levies, payments for which are included therein and collected therewith. (2) 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. (3) Covenants, Conditions and Restrictions, reservations easements for public utilities, districts, water companies, alleys and streets, rights and rights of way of record, if any; also exceptions of oil, gas, minerals and hydrocarbons, and/or lease, if any, without the right of surface entry. (4) A New Conventional First Trust Deed to record, executed by Vestee herein, securing a Note for $1,000,000.00 in favor of Lender, at prevailing rate and terms. Buyers' execution of the loan documents shall be deemed approval of all terms and conditions contained therein. Escrow Holder is instructed to comply with all of the lender's requirements in connection with said new loan. ESCROW INSTRUCTIONS/RESIDENTIAL PURCHASE AGREEMENT (AND RECEIPT FOR DEPOSIT): We, the undersigned hand you a copy of the Residential Purchase Agreement (and Receipt for Deposit) dated April 24, 2000, Contract Addendum No. 1 dated April 25, 2000. These escrow instructions have been taken from the Residential Purchase Agreement (and Receipt for Deposit), Contract Addendum No. 1, hereinafter referfed4o.as the "Agreement". Except for these escrow instructions, escrow holder is expressly deemed to not have any kno iI as ',�2rc�t3` constructive or otherwise, of the contents Continued on' Page.2 ADDITIONAL INSTRUCTIONS ATTACHED HERETO AND DES REOF A My hudals below represent any agreement and acknowledg Into he f 1J+gy Seller Initials: _ _ Buyer Initials: _ �l Page 1 , Mariners Escrow Civirlaza IS April 26, 2000 Es ow No.: 2-2066-MS Continued from Page 1 of same. Escrow Holder may retain a copy of the Agreement in their file strictly as an accommodation to the principals. However, the duties of the escrow holder are strictly and solely limited to the performance of the instructions set forth below. These instructions are not intended to, and do not amend, modify, cancel or supersede the Residential Purchase Agreement (and Receipt for Deposit) and any Counters/Addenda thereto. INSTRUCTIONS TO ESCROW: The following paragraphs in the Agreement shall constitute instructions to escrow holder, and escrow holder shall have no duty nor liability with respect to all other provisions of said Agreement. In the event there is a conflict between these escrow instructions (or amendments hereto) and the Agreement, the terms of the Agreement shall control. 1. PARAGRAPH 1/FINANCING Paragraph 1.A/Buyer's Deposit: In the amount of $60,000.00. Paragraph 1.C/First Loan: In the amount of $1,000,000.00. Paragraph LE/Balance of Purchase Price: In the amount of $800,000.00. Paragraph 1.F/Total Purchase Price: In the amount of $1,860,000.00. Paragraph 1.G/Loan Contingency: The loan contingency shall be removed by May 10, 2000. Paragraph 1.H/Loan Applications;Prequalification: Prequalification letter shall be provided by April 30, 2000. Paragraph 1.I/Appraisal: The Appraisal contingency is to be removed concurrent with the Loan Approval contingency, on or before May 10, 2000. 2. PARAGRAPH 2/ESCROW: Escrow shall close on or before May 19, 2000. 3. PARAGRAPH 4/ALLOCATION OF COSTS: Governmental Transfer Fees: A. Escrow holder is authorized and instructed to charge the account of Seller with the County Transfer Tax. Title and Escrow Costs: C. Escrow holder is authorized and instructed to charge the account of Seller with the Owner's title insurance policy, • issued by Commonwealth Land Title. Buyer shall pay for any title insurance policy insuring Buyer's Lender. D. Escrow holder is authorized and instructed to charge the account of Buyer and.Seller each party to pay own escrow fees. Other Costs: H. Escrow holder is authorized and instructed to charge the account of Seller with the Homeowner's Association transfer fee. I. Escrow holder is authorized and instructed to charge the account of Buyer with the homeowner's association documentation fee. J. Escrow holder is authorized and instructed to charge the account of Seller in the event a bill is placed in escrow for zone disclosure reports. K. Esbrow holder is authorized and instructed to charge the account of Seller in the event a bill is placed in escrow for smoke detector installation and/or water heater bracing. L. Escrow holder is authorized and instructed to charge the account of Seller in the event a bill is placed in escrow for any other minimum mandatory government retrofit standards and inspections required as a condition of closing escrow under any Law. M. Escrow holder is authorized and instructed to charge the account of Seller a maximum of $700.00, in the event a bill is placed in escrow for a home warranty plan. Policy to be issued by a company of Buyer's choice, with the following optional coverage: Roof, Refrigerator & A/C (if applicable). Pest Control Report: N. Escrow holder is authorized and instructed to charge the account of Seller for the termite report to be issued by Coast Termite. ' O. Escrow holder is authorized and instructed to charge the account of Seller for Section I items described on said report. P. Escrow holder is authorized and instructed to charge the account of Buyer for Section II items described on said report, unless waived by Buyer. 4. PARAGRAPH 5/PEST CONTROL TERMS: The report shall cover the main building and attached structures. 5. PARAGRAPH 7/DISCLOSURES: Escrow holder is authorized and instructed to charge the account of Buyer for property Continued on Page 3 i �.0` Z�.yy© ?� ADDITIONAL INSTRUCTIONS ATTACHED HERETO AND My initials below represent my agreement and acknowledl Seller Initials: _ _ Buyer Initials: _ Page 2 Mariners Escrow Ci%*Plaza April26, 2000 Prow No.: 2-2066-MS Continued from Page 2 disclosures, in the event a billing is placed in escrow for same. Escrow holder is authorized and instructed to order Homeowner's Association documents described in sub paragraph (B) and to charge the account of Seller for same. 6. PARAGRAPH 8/TITLE AND VESTING: Escrow holder is authorized and instructed to open the title order with Commonwealth Land Title. 7. PARAGRAPH 14/PRORATIONS AND PROPERTY TAXES: Escrow holder is authorized and instructed to prorate the following as of the date of close of escrow: (1) Taxes, based upon the latest available tax figures furnished by the title company; and (2) Homeowner's Association Dues, based upon statement to be obtained through the Management Company. 8. PARAGRAPH 16A&B&C/TIME PERIODS;INSPECTIONS;SATISFACTION/REMOVAL OF CONTINGENCIES;DISAPPROVAL/CANCELLATIONRIGHTS: Seller and Buyer have agreed to the "Passive Method" for contingency removal. Escrow holder is to be concerned with the removal of the following contingencies: (1) Preliminary Title Report approval, (2) Homeowner's Association document approval, if applicable (3) Loan Approval/Loan Assumption Approval, if applicable, (4) Pest Control approval, if applicable. (5) Beacon Bay Lease approval. CONTRACT ADDENDUM, ITEM NO. 2: Buyer's contingencies shall be removed the later of (1) May 10, 2000, (which is 15•calendar days from acceptance of offer) or (2) 5 calendar days from Buyer's receipt of all necessary disclosures and documents. 9. PARAGRAPH 28/OTHER TERMS AND CONDITIONS: BEACON BAY LEASE: This transaction is contingent upon Buyers approval of Beacon Bay Lease. Buyers shall remove this contingency by May 1, 2000 at noon. Buyer shall be responsible for payment of the transfer fee to the City of Newport Beach in the approximate amount of $250.00 and escrow holder is instructed to charge the account of Buyer for same at closing. ADDITIONAL MONIES: Buyer to deposit $100,000.00 additional monies into escrow for brokers commission (5% of $1,960,000.00) as per separate instructions and the remainder to apply to Seller's costs. INSTRUCTIONS NOT INCLUDED IN THE AGREEMENT: 1. FIRE INSURANCE: Buyer to obtain fire insurance coverage in accordance with lender requirements and pay the premium, through escrow, as required by lender. 2. PRELIMINARY TITLE REPORT: The closing of this escrow is contingent upon Buyer's approval of an up-to-date Preliminary Title Report, issued by Commonwealth Land Title, within 5 calendar days of receipt of same by Buyer. Buyer to notify escrow holder pursuant to the "Passive Method" within the time limit specified herein, of Buyer's approval or disapproval of the condition of title. I 3. RESIDENTIAL REPORT: Seller agrees to provide Buyer with a City of Newport Beach Residential Building Report. Escrowholder's only concern is to order the Report, if requested, and to charge the account of Seller for same, if a bill is presented into escrow for payment. 4. PRELIMINARY CHANGE OF OWNERSHIP REPORT Prior to the close of escrow, Grantee shall cause to be handed to Escrow Holder a fully completed and executed "Preliminary Change of Ownership Report" pursuant to the requirements and in accordance with Section 480.3 of the Revenue and Taxation Code, State of California. If Grantee so chooses, Grantee may elect not to complete and execute said form prior to the close of escrow. In such an event, Grantee is aware that a $20.00 charge will be assessed by the County Recorder's Office and Escrow Holder will charge the account of the Grantee accordingly. Said form will then be mailed directly to the Grantee after closing by the Assessor's office for completion outside of escrow. Escrow Holder's sole duty shall be the delivery of said form to the County Recorder at the time of recordation of transfer documents. 5. INCURRED EXPENSES: Buyer and Seller are aware that Mariners Escrow Corporation may` incur certain expenses during the course of processing this escrow which may be paid prior to the close of escrow. Such costs may include, but are not limited to, courier fees, overnight mail service, Homeowner's Association documents/transfer fees and City Building Reports, if applicable. Escrow Holder is authorized and instructed to release funds for payment of such costs, prior to the close of escrow, from funds deposited into escrow by Buyer. In the event Escrow Holder advances funds for certain costs Continued on ADDITIONAL INSTRUCTIONS ATTACHED HERETO` D MAD P EREOF My initials below represent my agreement and acknm VV qe 0 Seller Initials: _ _ Buyer Initials: Page 3 L',Qn , Mariners Escrow CivePlaza -0 April 26, 2000 Escrow No.: 2-2066-MS Continued from Page 3 described above, Escrow Holder is authorized to reimburse Escrow Holder's general account upon receipt of these signed escrow instructions from both Buyer and Seller. At close of escrow, Escrow Holder is authorized to charge the appropriate party for costs incurred, and is released from any and all liability in connection with complying with this instruction. 6. BUYER'S FINAL DEPOSIT: All conditions of this escrow will be deemed to be satisfied or waived by Buyer upon Buyer's deposit into escrow of sufficient funds to close this escrow, and Buyer's deposit of said funds shall be deemed Escrow Holder's unconditional authorization to proceed with closing this escrow. AS A MATTER OF MEMORANDUM ONLY: THE FOLLOWING IS ENTERED AS A MEMORANDUM ONLY, AT THE REQUEST OF THE PARTIES, WITH WHICH ESCROW HOLDER SHALL HAVE NO DUTY. A. DISCLOSURES: Buyers are related to their Agent. Seller is licensed Real Estate Broker. B. "AS IS": Security system not in operation and sold in as -is condition. Property sold as -is to breezeway greenhouse. C. SELLER TO OCCUPY PROPERTY: Seller to occupy property through June 30, 2000, at no cost to Seller. Seller to provide to Buyer access to property during lease -back period with 24 hour notice. D. FIXTURES EXCLUDED: Kitchen plate rack. E. PERSONAL PROPERTY: The following items of personal property, free of liens and 'AS IS" unless specifically warranted, are included in the purchase price: Train track, T.V. and components in media room. F.. SUPPLEMENTAL TAXES: Buyer is aware that the property will be reassessed upon change of ownership and that a supplemental tax bill will be received which may reflect an increase or decrease in property taxes based on property value. Tax bills received after close of escrow will be handled directly between Buyer and Seller. EACH PARTY SIGNING THESE INSTRUCTIONS HAS READ THE ADDITIONAL ESCROW CONDITIONS, GENERAL PROVISIONS AND INSTRUCTIONS ATTACHED HERETO AND MADE A PART HEREOF AND APPROVES, ACCEPTS AND AGREES TO BE BOUND THEREBY AS THROUGH SAID CONDITIONS, PROVISIONS AND INSTRUCTIONS APPEARED OVER THEIR SIGNATURES. The foregoing terms, provisions, conditions and instructions are hereby approved and accepted in their entirety and concurred in by me. The undersigned hereby agrees to pay on demand, charges for drawing, recording and notarizing documents, charges of title company, if any, charges of lender institution, if any, and the Buyer's and/or Borrower's customary escrow fees, necessary to complete this escrow. I HAVE RECEIVED A COPY OF THESE INSTRUCTIONS. Buyer's Signatures: The C&CS 1999 International Trust dated August 6, 1999 By: Ryan Steelberg, as Trustee The foregoing terms, provisions, conditions and instructions are hereby approved and accepted in their entirety and concurred in by me. I will hand you necessary documents called for on my part to cause title to be shown as set out herein, which you are authorized to deliver when you hold or have caused to be applied to funds set forth herein within the time as herein provided. You are authorized to pay on my behalf, my recording fees, charges for evidence of title as called for whether or not this escrow is consummated, except those the buyer agreed to pay. You are hereby authorized to pay bonds, assessments, taxes, and any liens of record, including prepayment penalties, if any, to show title as called for. I HAVE RECEIVED A COPY OF THESE INSTRUCTIONS. Seller's Signature: The Caldwell Community Trust established 4-29-96 By: Charles B. Caldwell, as Trustee By: Kimberly K. Caldwell, as Trustee - - END OF INSTRUC Page 4 GENERAL INSTRUCTIONS AND ADDITIONAL ESCROW 1. You are Instructed to deposit all funds received by you with any state or -national bank, state of federal savings bank, or state or federal savings and loan association, In a trust account in the name of escrow holder, without any liability for payment of interest. The funds may be withdrawn by you and disbursed according to the intmetion of the parties. All deposits made by personal check, cashier's check, certified check or deposit other than cash or wire transfer are subject to clearance and payment by financial institution on which drawn, All disbursements are tobe made by check of escrow holder from the trust account. Neither you nor any of your employees will identify any payee or guarantee signatures of any person or entity at any financial institution. Funds deposited into escrow in the form of a check, draft, or similar instrument will be identified as collected funds when the escrow holder's financial institution confirms that the funds are available for disbursement. 2. Your duty is to act as escrow holder only, and does not commence and escrow shall not be deemed opened until mutual escrow instructions signed by all parties are received by you. However, release of Buyer's funds will require mutual signed release instructions from both Buyer and Seller, judicial decision, or arbitration award. 3. All proralions and adjustments are to be made on the basis of a thirty (30) day month unless otherwise instructed in writing by all parties. For proration purposes, the Buyer will have ownership of the real property which is the subject of this escrow for the entire day, regardless of the hour of recording, The "close of escrow" with reference to proration, adjustments and all purposes in this escrow shall be the day the instruments of conveyance are recorded or filed with the county recorder. 4. Any funds disbursed during or on the close of escrow will be issued jointly to the parties designated as payees unless you are Instructed otherwise in writing by all designated payees. The funds representing loan and/or sale proceeds will be disbursed jointly to all persons who were the record owners of the real property which is the subject of the escrow, All disbursements of funds and/or delivery of other documents or instruments concerning this escrow will be mailed to the entitled parties by regular first-class mail, postage prepaid, at their respective addresses shown on file. However, at your discretion, you may send funds and/or other instruments or documents by certified or registered mail, Federal Express, messenger or facsimile machine, in which case the parry for whom the delivery was made agrees to pay the costs. The provision of this paragraph include, but are not limited to, requests for demand statements, requests for beneficiary statements, requests for homeowners' association statements, or any other requests as you may deem necessary for the timely closing of this escrow. You are to instruct the county recorder to mail recorded documents to the entitled parties at their respective addresses. You are to instruct die tide company to mail the title policy(s) to the Lender(s) or Buyer(s) as appropriate. 5. NOTWITHSTANDING ANY PROVISIONS TO THE CONTRARY CONTAINED IN THESE ESCROW INSTRUCTIONS OR SUPPLEMENTS OR AMENDMENTS, ESCROW HOLDER SHALL NOT BE RESPONSIBLE FOR THE SUFFICIENCY, VALIDITY OR CORRECTNESS OF ANY SIGNATURE OF ANY PRINCIPAL TO THIS ESCROW OR ANY THIRD PARTY TO THIS ESCROW, NOR FOR THE SUFFICIENCY OR CORRECTNESS AS TO FORM, MANNER OF EXECUTION OR VALIDITY OF ANY DOCUMENTS DEPOSITED IN THIS ESCROW, NOR AS TO THE IDENTITY, AUTHORITY, OR RIGHT OF ANY PERSONS EXECUTING THE SAME, EITHER AS TO DOCUMENTS OF RECORD OR THOSE HANDLED IN THIS ESCROW. SHOULD THE PARTIES DESIRE THAT YOU VERIFY THE SIGNATURES ON INSTRUCTIONS RECEIVED BY YOU, THE PARTY(IES) WITHOUT FURTHER INSTRUCTIONS AUTHORIZE THE PAYMENT OF ANY ESCROW FEE COMPUTED AT TWO TIMES YOUR REGULAR ESCROW FEE AND WILL DELIVER SEPARATE WRITTEN ESCROW INSTRUCTIONS SPECIFICALLY INSTRUCTING YOU TO DO SO, IF A LOAN ESCROW, BORROWER AGREES TO PAY CHARGES FOR TITLE POLICY, SPECIAL MESSENGERS, EXPEDITED MAIL, OFFSET STATEMENTS BENEFICIARY STATEMENTS AND/OR DEMANDS, PREPARATION OF, NOTARIZING AND RECORDING OF DOCUMENTS NECESSARY AND ON HIS BEHALF, AND ESCROW FEE AND OTHER COSTS AS CHARGED. 6. You shall not be responsible for the following: (1) the sufficiency or correctness as to form, manner of execution or validity of any documents deposited in this escrow; (2) the identity, authority, or right of any person executing the same, either as to documents of record or those handled in this escrow; or (3) the failure of any parry to comply with any of the provision of any agreement, contract or other Instrument filed or deposited in this escrow or referred to in these escrow instruction. Your duties shall be limited to die safekeeping of money and documents received by you as escrow holder and for the disposition in compliance with the written instructions accepted by you in this escrow. You shall not be required to take any action regarding the collections, maturity, or apparent outlaw of any obligation deposited with you unless otherwise instructed in writing. 7. Where'the assignment of any Insurance policy from Seller to Buyer is concerned, Seller guarantees to you any insurance policy handed you In this escrow Is a policy in force, the policy has not been hypothecated and that all necessary premiums have been paid. You are authorized to execute on behalf of the parties assignments of interest in any inumnce policy (other than tide insurance policies) called for in this escrow. You are authorized to transmit for assignment any insurance policy to the Insurance agent requesting that the insurer consent to such assignment, to request that a loss payee clause or such other endorsements as may be required be issued and to forward such policy to the Lender(s) and entitled party(ies). You shall not be responsible for verifying the acceptance of the request for assignment and policy of insurance by the insurance company. The parties mutually agree that you will make no attempt to verify the receipt of the request for assignment by the issuing insurance company. All parties are placed on notice that if the insurance company should fail to receive the assignment, the issuing company may deny coverage for any loss suffered by Buyer. IT IS THE OBLIGATION OF THE INSURED OR THE INSURED'S REPRESENTATIVE TO VERIFY THE ISSUING COMPANY'S ACCEPTANCE OF THE ASSIGNMENT OF THE POLICY. 8. You are not to be held responsible in any way whatsoever for any personal property tax which may be assessed against any former or present owner of the subject property described in these escrow Instructions, nor for the corporation or license tax of any corporation as a former or present owner. 9. If it is necessary, proper or convenient for the consummation of this escrow, you are authorized to deposit or have deposited funds or documents, or both, handed you under these escrow Instructions with any duly authorized sub -escrow agent, including, but not limited to, any bank, trust company, tide Insurance company, title company, savings and loan association, or licensed escrow agent, subject to your order at or before close of escrow,in connection with closing this escrow. Any such deposit shall be deemed a deposit under the meaning of these escrow instructions. 10. The parties to this escrow have satisfied themselves outside of escrow that the transaction covered by this escrow is not in violation of the Subdivision Map Act or any law regulating land division, zoning ordinances or building restrictions which may affect the land or improvements that are the subject of this escrow. You, as escrow holder, are relieved of all responsibility and liability in connection with such laws, ordinances, restriction or regulations and are not to be concerned with any of their enforcement. 11. If any form of Purchase Agreement or amendment or supplement (collectively "Purchase Agreement") is deposited in this escrow, it is understood that such document shall be effective only as between the parties signing the Purchase Agreement. You, as escrow holder, are not to be concerned with the terms of any Purchase Agreement and are relieved of all responsibility and liability for the enforcement of its terms. Your only duty is to comply with the instructions set forth in the escrow instructions. You are not responsible for Interpreting or acting on any provision of any Purchase Agreement on which these escrow Instructions may be based and you shall not rely on any knowledge or understanding you may have of any such Purchase Agreement in ascertaining or performing your duties as escrow holder. In connection with any loan transaction, you are authorized to deliver a copy of any Purchase Agreement, supplement or amendment and a copy of all escrow Instructions, supplements or amendments to the Lender, 12. You are not to be concerned with the giving of any disclosures required by federal or'sq%I1,. 4ncludi.ng, but not limited to, Real Estate Settlement ADDITIONAL INSTRUCTIONS ATTACHED HERETO MADE REOF My initials below represent my agreement and acknow dgnrent o t fe airr`g.xi Seller Initials: _ _ Buyer Initials cl,, Page 1 S+� Procedures Act, Regulation Z - Truth -In -Lending, condition of the subject property or other warnings, or any other warranties, express or implied. 13. You are authorized to deliver copies of all escrow Instructions, supplements and amendments, estimated and final closing statements, preliminary title reports, and notices of cancellation, If any, to die real estate broker(s), real estate sales agent(s), Lender(s), Lender's agent(s) and/or attorney(s) for the parties, upon the parties' oral or written request. You shall not incur any liability to the parties for delivery of the copies. 14. You shall -make no physical inspection of the real property or personal property described in any instrument deposited in or which is the subject of this escrow. You have made no representations or warranties concerning any such real property or personal property and are not to be concerned with nor liable for die condition of real property or personal property. 15. The parties authorize the recordation of any instrument delivered through this escrow if necessary or proper for the issuance of the required policy of tide insurance or for the closing of this escrow. Funds, instrnetions or instruments received in this escrow may be delivered to, or deposited with any title insurance company or tide company to comply with the terms and conditions of this escrow. 16. You are authorized to deduct from Seller's net proceeds or Buyer's net proceeds any amount which either Seller or Buyer may owe you in any other matter or transaction. You are authorized to charge, and the parties agree to pay additional escrow fees for extraordinary services not within the range of customary escrow processing, including, but not limited to, the verification of signatories to escrow instructions. 17. You are to use your usual document forms or the usual forms of any tide insurance company or title company and in our Instructions insert dates and terms on the instruments if incomplete when executed. 18. If the date by which Buyer's or Seller's performances are due shall be other than your regular business day, such performances shall be due on your next succeeding business day. 19. You shall conduct no lien or tide search of personal property regarding the sale or transfer of any personal property through this escrow. Should the party(ies) desire that you conduct a lien or title search of personal property, the party(ies) requesting the same shall deliver separate and specific written escrow instructions to you along with an agreement to pay your additional escrow fees. 20. You shall not be responsible in any way whatsoever nor are you to be concerned with any question of usury in any loan or encumbrance, whether new or of record, which may arise during the processing of this escrow. 21. The parties agree to deliver to you all documents, instruments, escrow instructions and funds required to process and close this escrow in accordance with its terms. 22. You are instructed to provide title to the subject real property in the condition identified in the escrow instructions by the parties. You are not responsible for die contents or accuracy of any beneficiary demands and/or beneficiary statements delivered to you by the existing lienholders. You are not required to submit any such beneficiary statement and/or beneficiary demand to the parties for approval before the close of escrow unless expressly instructed to do so in writing. Should the party(ies) desire to pre -approve any such beneficiary statement and/or beneficiary demand, the party(ies) requesting the same shall deliver separate and specific written escrow instructions to you. 23. You are not to be responsible in any way whatsoever nor to be concerned with the terms of any new loan or the content of any loan documents obtained by any party in connection with this escrow except to order such loan documents into the escrow file, tmmmit the loan documents to the Buyer for execution and transmit the executed loan documents to the Lender. The parties understand and agree that you are not involved nor concerned with the approval and/or processing of any loan or the contents and effect of loan documents prepared by a Lender. 24. The parties expressly indemnify and hold you harmless against third -party claims for any fees, costs or expenses where you have acted in good faith, with reasonable care and prudence and/or in compliance with these escrow instructions. 25. The parties agree that you have the responsibilities of any escrow holder only and there are no other legal relationships established in the terms and conditions of the escrow instructions. In connection with this escrow: (1) you shall have no duty or responsibility of notifying any of the parties to this escrow of any sale, resale, loan, exchange or other transaction involving any of the subject real property or personal property; (2) you shall have no responsibility or duty to disclose any benefit, including, but not limited to financial gain, realized by any person, firm or corporation involving any of the subject real property or personal property; and (3) you shall have no responsibility or duty to disclose any profit realized by any person, firm or corporation including, but not limited to, any real estate broker, real estate sales agent and/or a party to any other escrow, in connection therewith, although such other transaction may be handled by you in this escrow or in another escrow transaction. If, however, you are instructed in writing by any parry, Lender or other entitled person to disclose any sale, resale, loan, exchange or other transaction involving any of the subject real property or personal property or any profit realized by any person, firm or corporation to any party to this escrow, you shall do so without Incurring any liability to any party. You shall not be liable for any of your acts or omissions done in good faith nor for any claims, demands, losses or damages made or suffered by any party to this escrow, excepting such as may arise through or be caused by your willful neglect or gross misconduct. 26. Notwithstanding any other provisions in these escrow instructions and In addition to other fees and costs to which you may be entitled, the parties, jointly and severally, agree that if this escrow is not consummated within ninety (90) days of the date set for closing, you are instructed to, and without further instructions, withhold your escrow hold -open fee of $50.00 per month from the funds on deposit with you regardless of who deposited such funds. The parties, jointly and severally, further agree that if you are, for any reason, required to hold funds after close of escrow, you are instructed to, and without further instructions shall, withhold a hold -open fee of $50.00 per month from the funds on deposit with you regardless of who deposited such funds. The parties irrevocably instruct you to automatically cancel this escrow file without further instructions when all funds on deposit have been disbursed. 27. Your escrow holder agency shall terminate six (6) months following the date last set for close of escrow and shall be subject to earlier termination by receipt by you of mutually executed cancellation instructions, If this escrow was not closed or canceled, within the described six (6) month period, you shall have no further obligations as escrow holder except to disburse funds and documents pursuant to written escrow instructions and to interplead or otherwise dispose of funds and documents In accordance with a validly Issued and validly served order from,a court of competent jurisdiction. If the conditions of this escrow have not been complied with at the expiration date in these escrow instructions, you are instructed to complete die conditions at the earliest possible date, unless Buyer or Seller have made written demand upon you for the return of the funds and/or instruments deposited by Buyer or Seller and/or for cancellation of this escrow. Should demands be made upon you, you may withhold and stop all further+proceedings in this escrow without liability for interest on funds held or for damages until mutual cancellation instructions signed by all parties shall have been deposited with you. The parties, jointly and severally, agree that if this escrow cancels or is otherwise terminated and not closed, the parties shall pay for any costs and expenses which you have incurred or have become obligated for under these escrow instructions, including, but not limited to, attorneys' fees, arbitration fees and costs and reasonable escrow fees for the services rendered by you. The parties agree that such costs and expenses shall be paid and deposited in escrow before any cancellation or other termination of this escrow is effective. The parties agree that said charges for expenses, costs and fees may be apportioned between Buyer and Seller in a manner which, in your sole discretion, you consider equitable, and that your decision will be binding and conclusive upon the parties, Upon receipt of mutual cancellation instructions or a final order or judgment of a court of competent jurisdiction with accompanying writs of execution, levies or garnishments, you are instructed to disburse the escrow funds and instruments in accordance with such cancellation instructions, order or judgment and accompanying writ and this escrow shall, without further notice, be considered -terminated and canceled. 28. The pardeashall cooperate with you in carrying out the escrow instructions they depos l;tyi("h"��..you and completing this escrow. The parries shall deposit into ADDITIONAL INSTRUCTIONS ATTACHED HETa �ND �MA'DI y1+PART EREOF My inttiats below represent my agreement and acknow ien'trbf� heN i• go Seller Seller Initials: Buyer Initials: -- Page 2 %E�; Mariners Escrow Civic Plaza Date: April26, 2000 Escrow No.: 2-2066-MS page 4 escrow, upon request, any additional funds, instruments, documents, instructions, authorizations, or other items that are reasonably necessary to enable you to comply with demands made on you by third parties, to secure policies of tide insurance, or to otherwise carry out the terms of their instructions and close this escrow. If conflicting demands or notices are made or served upon you or any controversy arises between the parties or with any third person arising out of or relating to this escrow, you shall have the absolute right to withhold and stop all further proceedings in, and in performance of, this escrow until you receive written notification satisfactory to you of the settlement of the controversy by written agreement of the parties, or by the final order of judgment of a court of competent jurisdiction. All of the parties to this escrow, jointly and severally, promise to pay promptly on demand, as well as to indemnify you and to hold you harmless from -and against all administrative governmental investigation, audit and legal fees, litigation and Interpleader costs, damages, judgments, attorneys' fees, arbitration costs and fees, expenses, obligations and liabilities of every kind (collectively "costs") which in good faith you may incur or suffer in connection with or arising out of this escrow, whether said costs arise during the performance of or subsequent to this escrow, directly or indirectly, and whether at trial, on appeal, in administrative action, or in an arbitration. You are given a lien upon all the rights, titles and interest of the parties and all escrow papers and other property and monies deposited into this escrow to protect your rights and to indemnify and reimburse you. If the parties do not pay any fees, costs or expenses due you under the escrow instructions or do not pay for costs and attorneys' fees incurred in any litigation, administrative action and/or arbitration, on demand, they each agree to pay a reasonable fee for any attorney services which may be required to collect such fees or expenses, whether attorneys' fees are incurred before trial, at trial, on appeal or in arbitration. 29. ALL NOTICES, DEMANDS AND INSTRUCTIONS MUST BE IN WRITING. No notice, demand, instruction, amendment, supplement or modification of these escrow instructions shall be of any effect in this escrow until delivered in writing to you and mutually executed by all parties. AS SET FORTH ABOVE, YOU HAVE NO DUTY TO AND SHALL NOT VERIFY THE SIGNATURES OF ANY PARTIES OR NON-PARTIES UNLESS FURTHER WRITTEN ESCROW INSTRUCTIONS TO DO SO ARE RECEIVED AND THE ADDITIONAL ESCROW FEES ARE DEPOSITED. Any purported oral instruction, amendment, supplement, modification, notice or demand deposited with you by the parties or either of them shall be ineffective and invalid. You are to be concerned only with die directives expressly set forth in the escrow instructions, supplements and amendments thereto, and are not to be concerned with nor liable for items designated as "memorandum items" in die escrow instructions. 30. These escrow Instructions may be executed in counterparts, each of which shall be deemed an original regardless of the date of its execution and delivery. All such counterparts together shall constitute the same document. 31. If any check submitted to you is dishonored upon presentment for payment, you are authorized to notify all parties to the within escrow, their respective real estate broker(s) and real estate agent(s) and any other person or entity you deem in your sole discretion necessary to notify. 32. You are authorized to accept oral instructions from the parties' real estate broker(s), real estate agent(s), Lender(s) or Lender's agent(s) concerning the preparation of escrow instructions, amendments or supplements. However, you are not to act upon any Instruction so delivered until you have received die same in writing signed by all parties to this escrow. 33, In these escrow instructions, wherever the context so requires, the masculine gender includes the feminine and/or neuter and the singular number includes die plural. 34. The parties acknowledge and understand that you, as escrow holder, are not authorized to practice the law nor do you give financial advice. The parties are advised to seek legal and financial counsel and advice concerning the effect of these escrow instructions. The parties acknowledge that no representations are made by you about the legal sufficiency, legal consequences, financial effects or tax consequences of the within escrow transaction. 35. You are authorized to destroy or otherwise dispose of any and all documents, papers, escrow instructions, correspondence and records or other material constituting or pertaining to this escrow at any time after five (5) years from the date of: (1) the close of escrow; (2) the date of cancellation; or (3) the date of the last activity without liability and without further notice to the parties. 36. The parties agree to release you from any and all'liability of any kind or nature and to indemnify you from any loss, damages, claims, judgments or costs of any kind or nature resulting from or related to the release or discharge of ]hazardous or toxic wastes on the subject property whether it occurred in the past or present or may occur in the future which release or discharge is in violation of law, in excess of any state and/or federal standards, permit requirements and/or disclosure requirements existing at this time or which may exist at a future time. The parties represent that they made their own assessment of the condition of the subject ¢roperty and have not relied on any of your representations in making the assessment. The parties are advised to seek independent legal and technical environmental expert advice in assessing the risks associated with potential hazardous or toxic wastes. 37. All parties to this transaction instruct escrow holder to accept signatures forwarded herein via facsimile (faxed signatures) to close escrow, with the original Hereof signed to be forwarded to Escrow Holder directly upon such faxing. WE THE UNDERSIGNED WILL FORWARD THE ORIGINAL SIGNATURES VIA REGULAR MAIL, acknowledging the Corporate Commissioner of the State of California requests original signatures on all files. 38. The parties signatures on all escrow instructions and instruments pertaining to the within escrow indicates their unconditional acceptance and approval of same and you are entitled to rely on the parties execution. We jointly and severally, acknowledge receipt of a complete copy of the within escrow instructions and by our signatures set forth below, acknowledge that we have read, understood and agreed to the same in their entirety. BUYER(S): SELLER(S): The C&CS 1999 International Trust dated The Caldwell Community Trust August 6, 1999 established 4-29-96 Ryan Steelberg, as Trustee Charles B, Caldwell, as Trustee By Kimberly K. Caldw fas.Vustee ADDITIONAL INSTRUCTIONS ATTACHED HERETO AND MADE A P My initials below represent my agreement and acknowledgment of the ore ai Seller Initials: Buyer Initials: _ 05/16/00 09:10 MARINERS ESCROW CIUIC PLAZA i 96443020 NO.161 P001/002 MARINERS ESCROW CIVIC PLAZA W DATE : May 00 TO: : MARION BROCKMAN FAX NO : 644-3020 FRoM : JEAN SUBJECT: FAX TRANSMITTAL TIME: 12:42 PM 4 Civic Plaza, Suite 100 Newport Heeoh, Celiramle 72"0 Phana(949)129.0195 NA(949)729.0190 TOTAL NUMBER OF PAGES: (INCLUDING THIS PAGE) CERTIFIED COPY OF NEW VESTING FOR 22 BEACON BAY. AS PER TELEPHONE CONVERSATION IF YOU CAN JUST RE -DO THE FRONT PAGE AND THE SIGNATURE PAGE OF THE. LEASE AND DO A NEW MEMORANDUM, THAT WILL WORK FINE. I WILL REPLACE THE OLD FRONT PAGE AND THE SIGNATURE PAGE ON THE TWO COPIES OF THE LEASE THAT I HAVE. IF A SIGNATURE IS REQUIRED, PLEASE FAX BACK TO: 949-729-0190 IF YOU DO NOT RECEIVE ALL PAGES, PLEASE CONTACT US AT: 949-729-0199 IMPORTANT NOTE: Should any of these papers require an ORIGINAL SIGNATURE, Please sake a XEROX COPY BEFORE SIGNING. We will not accept an Original Signature on FAX paper. Thank you for your cooperation In this matter. THIS MESSAGE IS INTENDED ONLY FOR THE USE OF THE INDIVIDUAL OR ENTITY TO WHICH IT IS ADDRESSED. AND MAY CONTAIN INFORMATION THAT IS PRIVILEGED OR CONFIDENTIAL, IF THE HEADER OF THIS MESSAGE IS NOT THE INTENDED RECIPIENT, OR THE r.MPI.DYEF, OR AGENT RESPONSIBLE FOR DELIVERING THE MESSAGE TO THE INTENDED RECIPIENT YOU ARE HEREBY NOTIFIED THAT ANY DISSEMINATION, DISTRIBUTION OR COPYING OF THIS COMMUNICATION IS STRICTLY PROHIBITED. IF YOU HAVE READ THIS COMMUNICATION IN ERROR, PLCASk NOTIFY US IMMEDIATELY BY TLI.CPHONE AND RETURN THE ORIGINAL MFSSA(ih TO US AT THE ABOVE ADDRESS VIA THE. U.S. POSTAL SERVICE. 2.2066-MS MAY-16-2000 09:40 949 729 0190 97: P.01 05/16/00 09:10 'MARINERS ESCROW CIUIC PLAZA a 96443020 1,10.161 P002i002 0 AMARINERS ESCROW CIVIC PLAZA AMENDED ESCROW INSQVC!r10NS Escrow No. 2.2066-MS Re: 22 Reagan Bay. Newport Beach. CA 92660 4 Ciwe rim, Suite 190 N.wpud Rua, Catlrnma 91660 Phan.(9e9) 719411-N re.(9e9) 729d199 Date: May 12, 2000 To: Mariners Fserow Clyle FUra - Marilyn Sauter My previous instructions in the above numbered escrow are hereby modified - supplemented in the following particulars only: BUYERS VESTING IS HEREBY AHMED TO READ AS FOLLOWS: CHAD E. STEELBERG and CRISTINA M. STEELBERO, husband and wife, an community property Eecrowholder is authorized and instructed to use said venting on all documents in this transaction. By signing this amendment Ryan Steelberg, an Trustee of The C&CSs 1999 International Trust dated August 6, 2999, relinquishes all of his interest in this transaction and all rights to the deposit, Ryan Steelberg understands that he will have no right, title or interest in thin transaction. By signing this instruction Chad E. Steelberg and Cristina M. Steelberg acknowledge that they have received a copy of the original escrow instructions and amendments thereto and are bound by all terms and conditions contained therein. Seller hereby authorizes and instructs escrowholder to insert the vesting on the grant deed over their signatures. All eater kmR ud cmdmmm Of We escrow shall re,mam the emot. All pam8 stamng thu intm ma utrostedle receipt oh copy orssme. SF.LLF.R(S)r The Caldwell Community Trust established 4.29.96 By: Charles B. Caldwell, as Trustee By: Kimberly K. Caldwell, u Trustee BUYER(S): The C&CS 1999 International Trust dated August 6, 1999 By: Ryan Steelberg, as Trustee Chad E. Steelberg Ctistina M. Steelberg MPIY-16-2000, 09:40 949 729 0190 76% 1 P.02 0 TO G OAT TIME _ AREA COD/E /�% O /� NO. r'7 r A� 0 ®�' MARINERS ESCROW CIVIC PLAZA May 9, 2000 CITY OF NEWPORT BEACH/CITY HALL 3300 Newport Blvd., Newport Beach, CA., ATTN; MARION BROCKMAN Re: 2-2066-MS Dear Ms. Brockman: 4 Civic Plaza, Suite 100 Newport Beach, California 92660 Phone (949)729.0199 Fax (949)729.0190 In connection with 22 Beacon Bay, enclosed please find two executed original leases, Memorandum of Lease and Termination of Lease. Please expedite the signing of these documents by the City of Newport Beach and call when they are ready for pick-up. We are very near escrow closing date so would appreciate getting these papers back as soon as possible. Also enclosed is a certified copy of the Grant Deed to Steelberg. If you need anything further, please call. We appreciate the opportunity to be of service to you in this transaction. Should you have any questions, please call us at the telephone number(s) referenced above. Mariners Escrow Civic Plaza Jean Hickman for Marilyn Sauter Escrow Officer jh RECORDING REQUESTED BY • AND WHEN RECORDED MAIL TO: The C&CS 1999 International Trust dated A.P.N.: A ME AUD Above This Line for Order No.: 2001830 GRANT DEED Use Only No.: 2-2066•MS THE UNDERSIGNED GRANTOR(s) DECLARE(s) THAT DOCUMENTARY TRANSFER TAX IS: COUNTY NONE DUE - SUBJECT TO LEASE. Deed being recorded to perfect title. —Computed on full value of property conveyed, or computed on full value less value of liens or encumbrances remaining at time of sale, unincorporated area; [XXX] City of Newport Beach , and FOR A VALUABLE CONSIDERATION, Receipt of which is hereby acknowledged, Charles B. Caldwell and Kimberly K. Caldwell, as Trustee of the Caldwell Community Trust established 4-29-96 hereby GRANT(S) to Ryan Steelberg, as Trustee of the C&CS 1999 International Trust dated August 6, 1999 ALL BUILDING(S) AND IMPROVEMENTS located at the following described property In the City of Newport Beach, County of Orange State of California; A LEASEHOLD ESTATE IN AND TO: Lot 22 and that portion of Lot H fronting Lot 22 and extending Northward 32 feet and that portion of Lot 1 fronting Lot 22 and extending Southward 28 feet to U.S. Bulkhead line, as shown on a Record of Surveys Map recorded in Book 9, Pages 42 and 43 of Record of Surveys in the Office of the County Recorder of Orange County, California. I The Caldwell Community Trust established 4-29-96 Kirliberly IAI)ril aldN/ell, as Trustee Document DaI 28, 2000 STATE OF CALIFORNIA )SS COUNTY OF ORANGE Ar) On a., Rth 9nnn before me. Jean Hickman personally known tome (or proved tome on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within Instrument and acknowledged tome that he/she/dtey executed the same in his/her/their authorized capacity(ies) and that by his/her/dteir signature(s) on ate Instrument the person(s) or We entityupon behalf of which the person(s) acted, executed the Instrument. WITNESS my hand and official seal, � JEAN HMKMAN - This area for official notarial seal. JEAN HICIOJAN MOTARYPUBllO•CAUFORNK OOMMISSION M 1216018 ORANGE COUNTY My Comm. Exp. AprU 20, 20D� Mail Tax Statements to: SAME AS ABOVE or Address Noted Below Q SEW PART e� CITY OF NEWPORT BEACH u r CqC/FppN`P' Office of City Manager (949) 644-3002 May 3, 2000 Marilyn Sauter Escrow Officer Mariners Escrow Civic Plaza 4 Civic Plaza, Suite 1000 Newport Beach, CA 92660 Subject: 22 Beacon Bay Dear Ms. Sauter: Enclosed please find two original leases, a Memorandum of Lease and a Termination of Lease. Please have all documents signed and the Memorandum of Lease and Termination of Lease notarized, and return to the City for signatures. Sincerely, Marion Brockman/ Administrative Assistant mb Enclosures City Hall • 3300 Newport Boulevard • Newport Beach, California 92663-3884 00� f0) MARINERS ESCROW 4,-W CIVIC PLAZA City of Newport Beach Attn: MARION BROCKMAN 3300 Newport Blvd. Newport Beach, CA 92658-8915 Attn: MARION BROCKMAN Re: 22 BEACON BAY, NEWPORT BEACH RE: Escrow k2-2066-MS 4 Civic Plaza, Suite 100 Newport Beach, California 92660 Phoac(949) 729.0199 Fax(949) 729.0190 Date : May 2, 2000 Escrow No. : 2-2066-MS A check in the amount of $100.00 for processing of the new lease & certified escrow instructions for your records. Thank you. Should you have any questions or need any further assistance, please do not hesitate to contact the undersigned. Thank you. Civic Plaza H ORIGINAL DOCUMENT IS PRINTED ON CHEMICAL REACTIVE PAPER A HAS A MICROPRINTED BORDER FIRST SECURITY BANK 2101 E Coast Highway Corona Dal Mar, CA 92625 MARINERS ESCROW 90.376PA222 CIVIC PLAZA 4 CIVIC PLAZA, STE. 100 NEWPORT BEACH, CA 92660 714.729.0199 PAY One Hundred And 00/100 Dollars TOTHE ORDER City of Newport Beach OF 3300 Newport Blvd. P. 0. Box 1768 Newport Beach, CA 92658-8915 17293 ESCROW NO. DATE 2-2066-MS 05/02/00 AMOUNT $ 100.00 9 THE REVERSE SIDE OF THIS DOCUMENT INCLUDES AN ARTIFICIAL WATERMARK • HOLD AT AN ANGLE TO VIEW a MARINERS ESCROW CIVIC PLAZA Newport Beach, CA 92660 Date: 05/02/00 Escrow No. 2-2066-MS Closed: 04/28/00 Check Amount$ 100.00 Funds Due You PROPERTY: 22 Beacon Bay Newport Beach, CA 92660 SELLER: The Caldwell Community Trust established 4-29 BUYER: The C&CS 1999 International Trust dated Processing for New lease We appreciate your business! 17293 1 MARINERS ESCROW CIVIC PLAZA ,3�31 FS TO: Mariners Escrow Civic Plaza SALE ESCROW INSTRUCTIONS 4 Civic Plaza, Suite 100 Newport Beach, California 92660 Phone (949) 729.0199 Pax (949) 729.0190 Date: April 26, 2000 Escrow officer: Marilyn Sauter Escrow Assistant: Escrow Number: 2-2066-MS MARINERS ESCROW CORPORATION, IS LICENSED BY THE STATE OF CALIFORNIA DEPARTMENT OF CORPORATIONS, LICENSE NO. 963-1009, BRANCH NO. (863 1181). Terms of Transaction I have Deposited into Escrow the sum of $ 60,000.00 I will Deposit, prior to close of escrow, the sum of $ 800,000.00 I will Obtain a New First Trust Deed loan in the amount of $ 1,000,000.00 To Complete the Total Consideration of 1,860,000.00 The title is presently vested in Charles B. Caldwell and Kimberly K. Caldwell, as Trustees of the Caldwell Community Trust established 4-29-96, (hereinafter referred to as "Seller"), Ryan Steelberg, as Trustee of the C&CS 1999 International Trust dated August 6, 1999, (hereinafter referred to as "Buyer") will hand Mariners Escrow Civic Plaza, (hereinafter referred to as "Escrow Holder") an initial deposit of $60,000.00 and, prior to the close of escrow, will deposit the balance of the cash down payment and any additional funds and instruments necessary to enable Escrow Holder to comply with these instructions, all of which Escrow Holder is instructed to use provided that on or before May 19, 2000, the closing date of escrow, Escrow Holder holds an ALTA-R Owners Policy of Title Insurance with the usual title company's exceptions, with a liability of not less than $1,860,000.00, covering property in the County of Orange, State of California, described as follows: A LEASEHOLD ESTATE IN AND TO: Lot 22 and that portion of Lot H fronting Lot 22 and extending Northward 32 feet and that portion of Lot 1 fronting Lot 22 and extending Southward 28 feet to U.S. Bulkhead line, as shown on a Record of Surveys'Map recorded in Book 9, Pages 42 and 43 of Record of Surveys in the Office of the County Recorder of Orange County, California. COMMONLY KNOWN As: 22 Beacon Bay, Newport Beach, CA 92660 (NOT VERIFIED BY ESCROW HOLDER) SHOWING TITLE VESTED IN: Ryan Steelberg, as Trustee of the C&CS 1999 International Trust dated August 6, 1999 SUBJECT TO: (1) General and Special County and City (if any) Taxes for the current fiscal year, not due or delinquent, including any special levies, payments for which are included therein and collected therewith. (2) 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. (3) Covenants, Conditions and Restrictions, reservations easements for public utilities, districts, water companies, alleys and streets, rights and rights of way of record, if any; also exceptions of oil, gas, minerals and hydrocarbons, and/or lease, if any, without the right of surface entry. (4) A New Conventional First Trust Deed to record, executed by Vestee herein, securing a Note for $1,000,000.00 in favor of Lender, at prevailing rate and terms. Buyers' execution of the loan documents shall be deemed approval of all terms and conditions contained therein. Escrow Holder is instructed to comply with all of the lender's requirements in connection with said new loan. ESCROW INSTRUCTIONS/RESIDENTIAL PURCHASE AGREEMENT (AND RECEIPT FOR DEPOSIT): We, the undersigned hand you a copy of the Residential Purchase Agreement (and Receipt for Deposit) dated April 24, 2000, Contract Addendum No. 1 dated April 25, 2000. These escrow instructions have been taken from the Residential Purchase Agreement (and Receipt for Deposit), Contract Addendum No. 1, hereinafter referred to as the "Agreement". Except for these escrow instructions, escrow holder is expressly deemed to not have any knowledge, actual, constructive or otherwise, of the contents Continued on Page 2 ADDITIONAL INSTRUCTIONS ATTACHED My initials below represent no, agreemen! Seller Initials: Bi Page 1 Mariners Escrow Civic Plaza Date: April26, 2000 Escrow No.: 2-2066-MS Continued from Page 1 of same. Escrow Holder may retain a copy of the Agreement in their file strictly as an accommodation to the principals. However, the duties of the escrow holder are strictly and solely limited to the performance of the instructions set forth below. These instructions are not intended to, and do not amend, modify, cancel or supersede the Residential Purchase Agreement (and Receipt for Deposit) and any Counters/Addenda thereto. INSTRUCTIONS TO ESCROW: The following paragraphs in the Agreement shall constitute instructions to escrow holder, and escrow holder shall have no duty nor liability with respect to all other provisions of said Agreement. In the event there is a conflict between these escrow instructions (or amendments hereto) and the Agreement, the terms of the Agreement shall control. 1. PARAGRAPH 1/FINANCING Paragraph 1.A/Buyer's Deposit: In the amount of $60,000.00. Paragraph 1.C/First Loan: In the amount of $1,000,000.00. Paragraph 1.E/Balance of Purchase Price: In the amount of $800,000.00. Paragraph 1.F/Total Purchase Price: In the amount of $1,860,000.00. Paragraph 1.G/Loan Contingency: The loan contingency shall be removed by May 10, 2000. Paragraph LH/Loan Applications;Prequalification: Prequaliftcation letter shall be provided by April 30, 2000. Paragraph 1.I/Appraisal: The Appraisal contingency is to be removed concurrent with the Loan Approval contingency, on or before May 10, 2000. 2. PARAGRAPH 2/ESCROW: Escrow shall close on or before May 19, 2000. 3. PARAGRAPH 4/ALLOCATION OF COSTS: Governmental Transfer Fees: A. Escrow holder is authorized and instructed to charge the account of Seller with the County Transfer Tax. Title and Escrow Costs: C. Escrow holder is authorized and instructed to charge the account of Seller with the Owner's title insurance policy, issued by Commonwealth Land Title. Buyer shall pay for any title insurance policy insuring Buyer's Lender. D. Escrow holder is authorized and instructed to charge the account of Buyer and Seller each party to pay own escrow fees. Other Costs: H. Escrow holder is authorized and instructed to charge the account of Seller with the Homeowner's Association transfer fee. I. Escrow holder is authorized and instructed to charge the account of Buyer with the homeowner's association documentation fee. J. Escrow holder is authorized and instructed to charge the account of Seller in the event a bill is placed in escrow for zone disclosure reports. K. Escrow holder is authorized and instructed to charge the account of Seller in the event a bill is placed in escrow for smoke detector installation and/or water heater bracing. L. Escrow holder is authorized and instructed to charge the account of Seller in the event a bill is placed in escrow for any other minimum mandatory government retrofit standards and inspections required as a condition of closing escrow under any Law. M. Escrow holder is authorized and instructed to charge the account of Seller a maximum of $700.00, in the event a bill is placed in escrow for a home warranty plan. Policy to be issued by a company of Buyer's choice, with the following optional coverage: Roof, Refrigerator & A/C (if applicable). Pest Control Report: N. Escrow holder is authorized and instructed to charge the account of Seller for the termite report to be issued by Coast Termite. O. Escrow holder is authorized and instructed to charge the account of Seller for Section I items described on said report. P. Escrow holder is authorized,and instructed to charge the account of Buyer for Section II items described on said report, unless waived by Buyer. 4. PARAGRAPH 5/PEST CONTROL TERMS: The report shall cover the main building and attached structures. S. PARAGRAPH 7/DISCLOSURES: Escrow holder is authorized and instructed to charge the account of Buyer for property Continued on Page 3 AND 0® � CIF D/TO BE A TRUE ADDITIONAL INSTRUCTIONS ATTACHED HERETO-AN7YMA A P P OOF Tyg OR►GlNAL. My initials below represent no, agreement and acknowledgment I - Seller Initials: Buyer Initials: _ Page 2 Mariners Escrow Civic Plaza Date: April26, 2000 Escrow No.: 2-2066-MS Continued from Page 2 disclosures, in the event a billing is placed in escrow for same. Escrow holder is authorized and instructed to order Homeowner's Association documents described in sub paragraph (B) and to charge the account of Seller for same. 6. PARAGRAPH 8/TITLE AND VESTING: Escrow holder is authorized and instructed to open the title order with Commonwealth Land Title. 7. PARAGRAPH 14/PRORATIONS AND PROPERTY TAXES: Escrow holder is authorized and instructed to prorate the following as of the date of close of escrow: (1) Taxes, based upon the latest available tax figures furnished by the title company; and (2) Homeowner's Association Dues, based upon statement to be obtained through the Management Company. 8. PARAGRAPH 16A&B&C/TIME PERIODS;INSPECTIONS;SATISFACTION/REMOVAL OF CONTINGENCIES;DISAPPROVAL/CANCELLATION RIGHTS: Seller and Buyer have agreed to the "Passive Method" for contingency removal. Escrow holder is to be concerned with the removal of the following contingencies: (1) Preliminary Title Report approval, (2) Homeowner's Association document approval, if applicable (3) Loan Approval/Loan Assumption Approval, if applicable, (4) Pest Control approval, if applicable. (5) Beacon Bay Lease approval., CONTRACT ADDENDUM, ITEM NO. 2: Buyer's contingencies shall be removed the later of (1) May 10, 2000, (which is 15 calendar days from acceptance of offer) or (2) 5 calendar days from Buyer's receipt of all necessary disclosures and documents. 9. PARAGRAPH 28/OTHER TERMS AND CONDITIONS: BEACON BAY LEASE: This transaction is contingent upon Buyers approval of Beacon Bay Lease. Buyers shall remove this contingency by May 1, 2000 at noon. Buyer shall be responsible for payment of the transfer fee to the City of Newport Beach in the approximate amount of $250.00 and escrow holder is instructed to charge the account of Buyer for same at closing. ADDITIONAL MONIES: Buyer to deposit $100,000.00 additional monies into escrow for brokers commission (5% of $1,960,000.00) as per separate instructions and the remainder to apply to Seller's costs. INSTRUCTIONS NOT INCLUDED IN THE AGREEMENT: 1. FIRE INSURANCE: Buyer to obtain fire insurance coverage in accordance with lender requirements and pay the premium through escrow, as required by lender. 2. PRELIMINARY TITLE REPORT: The closing of this escrow is contingent upon Buyer's approval of an up-to-date Preliminary Title Report, issued by Commonwealth Land Title, within 5 calendar days of receipt of same by Buyer. Buyer to notify escrow holder pursuant to the "Passive Method" within the time limit specified herein, of Buyer's approval or disapproval of the condition of title. 3. RESIDENTIAL REPORT: Seller agrees to provide Buyer with a City of Newport Beach Residential Building Report. Escrowholder's only concern is to order the Report, if requested, and to charge the account of Seller for same, if a bill is presented into escrow for payment. 4. PRELIMINARY CHANGE OF OWNERSHIP REPORT Prior to the close of escrow, Grantee shall cause to be handed to Escrow Holder a fully completed and executed "Preliminary Change of Ownership Report" pursuant to the requirements and in accordance with Section 480.3 of the Revenue and Taxation Code, State of California. If Grantee so chooses, Grantee may elect not to complete and execute said form prior to the close of escrow. In such an event, Grantee is aware that a $20.00 charge will be assessed by the County Recorder's Office and Escrow Holder will charge the account of the Grantee accordingly. Said form will then be mailed directly to the Grantee after closing by the Assessor's office for completion outside of escrow. Escrow Holder's sole duty shall be the delivery of said form to the County Recorder at the time of recordation of transfer documents. 5. INCURRED EXPENSES: Buyer and Seller are aware that Mariners Escrow Corporation may incur certain expenses during the course of processing this escrow which may be paid prior to the close of escrow. Such costs may include, but are not limited to, courier fees, overnight mail service, Homeowner's Association documents/transfer fees and City Building Reports, if applicable. Escrow Holder is authorized and instructed to release funds for payment of such costs, prior to the close of escrow, from funds deposited into escrow by Buyer. In the event Escrow Holder advances funds for certain costs Continued on Page 4 qqPP,, CEn II 6E ADDITIONAL INSTRUCTIONS ATTACHED iHmRETO'�A�[VD�MA ^ ' Vj= THE OFi1(�1(�� My initials below represent my agreement and acknowledginen o th f omg L Seller Initials: Buyer Initial` —_ Page 3 Mariners Escrow Civic Plaza Date: April26, 2000 Escrow No.: 2-2066-MS Continued from Page 3 described above, Escrow Holder is authorized to reimburse Escrow Holder's general account upon receipt of these signed escrow instructions from both Buyer and Seller. At close of escrow, Escrow Holder is authorized to charge the appropriate party for costs incurred, and is released from any and all liability in connection with complying with this instruction. 6. BUYER'S FINAL DEPOSIT: All conditions of this escrow will be deemed to be satisfied or waived by Buyer upon Buyer's deposit into escrow of sufficient funds to close this escrow, and Buyer's deposit of said funds shall be deemed Escrow Holder's unconditional authorization to proceed with closing this escrow. AS A MATTER OF MEMORANDUM ONLY: THE FOLLOWING IS ENTERED AS A MEMORANDUM ONLY, AT THE REQUEST OF THE PARTIES, WITH WHICH ESCROW HOLDER SHALL HAVE NO DUTY. A. DISCLOSURES: Buyers are related to their Agent. Seller is licensed Real Estate Broker. B. "AS IS": Security system not in operation and sold in as -is condition. Property sold as -is to breezeway greenhouse. C. SELLER TO OCCUPY PROPERTY: Seller to occupy property through June 30, 2000, at no cost to Seller. Seller to provide to Buyer access to property during lease -back -period with 24 hour notice. D. FIXTURES EXCLUDED: Kitchen plate rack. E. PERSONAL PROPERTY: The following items of personal property, free of liens and 'AS IS" unless specifically warranted, are included in the purchase price: Train track, T.V. and components in media room. F.. SUPPLEMENTAL TAXES: Buyer is aware that the property will be reassessed upon change of ownership and that a supplemental tax bill will be received which may reflect an increase or decrease in property taxes based on property value. Tax bills received after close of escrow will be handled directly between Buyer and Seller. EACH PARTY SIGNING THESE INSTRUCTIONS HAS READ THE ADDITIONAL ESCROW CONDITIONS, GENERAL PROVISIONS AND INSTRUCTIONS ATTACHED HERETO AND MADE A PART HEREOF AND APPROVES, ACCEPTS AND AGREES TO BE BOUND THEREBY AS THROUGH SAID CONDITIONS, PROVISIONS AND INSTRUCTIONS APPEARED OVER THEIR SIGNATURES. The foregoing terms, provisions, conditions and instructions are hereby approved and accepted in their entirety and concurred in by me. The undersigned hereby agrees to pay on demand, charges for drawing, recording and notarizing documents, charges of title company, if any, charges of lender institution, if any, and the Buyer's and/or Borrower's customary escrow fees, necessary to complete this escrow. I HAVE RECEIVED A COPY OF THESE INSTRUCTIONS. Buyer's Signatures: The C&CS 1999 International Trust dated August 6, 1999 By: Ryan Steelberg, as Trustee The foregoing terms, provisions, conditions and instructions are hereby approved and accepted in their entirety and concurred in by me. I will hand you necessary documents called for on my part to cause title to be shown as set out herein, which you are authorized to deliver when you hold or have caused to be applied to funds set forth herein within the time as herein provided. You are authorized to pay on my behalf, my recording fees, charges for evidence of title as called for whether or not this escrow is consummated, except those the buyer agreed to pay. You are hereby authorized to pay bonds, assessments, taxes, and any liens of record, including prepayment penalties, if any, to show title as called for. I HAVE RECEIVED A COPY OF THESE INSTRUCTIONS. Seller's Signature: The Caldwell Community Trust established 4-29-96 By: Charles B. Caldwell, as Trustee By: Kimberly K. Caldwell, as Trustee - - END OF INSTRUCTIO1 _ Page 4 Mariners Escrow Civic Plaza Date: April26, 2000 Escrow No.: 2-2066-MS Continued from Page 4 'ro�Iy OF Hz ©R!C;(NAt Page 5 GENERAL INSTRUCTIONS AND ADDITIONAL ESCROW CONDITIONS 9 1. You are instructed to deposit all funds received by you with any state or national bank, state of federal savings bank, or state or federal savings and loan association, in a trust account in the name of escrow holder, without any liability for payment of interest. The funds may be withdrawn by you and disbursed according to the instructions of the parties. All deposits made by personal check, cashier's check, carolled check or deposit other than cash or wire transfer are subject to clearance and payment by financial institution on which drawn. All disbursements are to be made by check of escrow holder from the trust account. Neither you nor any of your employees will identify any payee or guarantee signatures of any person or entity at any financial institution. Funds deposited into escrow in the form of a check, draft, or similar instrument will be identified as collected funds when the escrow holder's financial institution confirms that the funds are available for disbursement. 2. Your duty is to act as escrow holder only, and does not commence and escrow shall not be deemed opened until mutual escrow instructions signed by all parties are received by you. However, release of Buyer's funds will require mutual signed release instructions from both Buyer and Seller, judicial decision, or arbitration award. 3. All proration and adjustments are to be made on the basis of a thirty (30) day month unless otherwise instructed in writing by all parties. For proration purposes, the Buyer will have ownership of the real property which is the subject of this escrow for the entire day, regardless of the hour of recording. The "close of escrow" with reference to proration, adjustments and all purposes in this escrow shall be the day the instruments of conveyance are recorded or filed with the county recorder. 4. Any funds disbursed during or on the close of escrow will be issued jointly to the parties designated as payees unless you are instructed otherwise in writing by all designated payees. The funds representing loan and/or sale proceeds will be disbursed jointly to all persons who were the record owners of the real property which is the subject of the escrow. All disbursements of funds and/or delivery of other documents or instruments concerning this escrow will be mailed to the entitled parties by regular first-class mail, postage prepaid, at their respective addresses shown on file. However, at your discretion, you may send funds and/or other instruments or documents by certified or registered mail, Federal Express, messenger or facsimile machine, in which case the party for whom the delivery was made agrees to pay the costs. The provision of this paragraph include, but are not limited to, requests for demand statements, requests for beneficiary statements, requests for homeowners' association statements, or any other requests as you may deem necessary for the timely closing of this escrow. You are to instruct the county recorder to mail recorded documents to the entitled parties at their respective addresses. You are to instruct the title company to mail the tide policy(s) to the Lender(s) or Buyer(s) as appropriate. S. NOTWITHSTANDING ANY PROVISIONS TO THE CONTRARY CONTAINED IN THESE ESCROW INSTRUCTIONS OR SUPPLEMENTS OR AMENDMENTS, ESCROW HOLDER SHALL NOT BE RESPONSIBLE FOR THE SUFFICIENCY, VALIDITY OR CORRECTNESS OF ANY SIGNATURE OF ANY PRINCIPAL TO THIS ESCROW OR ANY THIRDTARTY TO THIS ESCROW, NOR FOR THE SUFFICIENCY OR CORRECTNESS AS TO FORM, MANNER OF EXECUTION OR VALIDITY OF ANY DOCUMENTS DEPOSITED IN THIS ESCROW, NOR AS TO THE IDENTITY, AUTHORITY, OR RIGHT OF ANY PERSONS EXECUTING THE SAME, EITHER AS TO DOCUMENTS OF RECORD OR THOSE HANDLED IN THIS ESCROW. SHOULD THE PARTIES DESIRE THAT YOU VERIFY THE SIGNATURES ON INSTRUCTIONS RECEIVED BY YOU, THE PARTY(MS) WITHOUT FURTHER INSTRUCTIONS AUTHORIZE THE PAYMENT OF ANY ESCROW FEE COMPUTED AT TWO TIMES YOUR REGULAR ESCROW FEE AND WILL DELIVER SEPARATE WRITTEN ESCROW INSTRUCTIONS SPECIFICALLY INSTRUCTING YOU TO DO SO. IF A LOAN ESCROW, BORROWER AGREES TO PAY CHARGES FOR TITLE POLICY, SPECIAL MESSENGERS, EXPEDITED MAIL, OFFSET STATEMENTS BENEFICIARY STATEMENTS AND/OR DEMANDS, PREPARATION OF, NOTARIZING AND RECORDING OF DOCUMENTS NECESSARY AND ON HIS BEHALF, AND ESCROW FEE AND OTHER COSTS AS CHARGED. 6. You shall not be responsible for the following: (1) the sufficiency or correctness as to form, manner of execution or validity of any documents deposited in this escrow; (2) the identity, authority, or right of any person executing the same, either as to documents of record or those handled in this escrow; or (3) the failure of any party to comply with any of the provisions of any agreement, contract or other instrument filed or deposited -in this escrow or referred to in these escrow instructions. Your duties shall be limited to the safekeeping of money and documents received by you as escrow holder and for the disposition in compliance with the written Instructions accepted by you in this escrow. You shall not be required to take any action regarding the collection, maturity, or apparent outlaw of any obligations deposited with you unless otherwise instructed in writing. 7. Where the assignment of any insurance policy from Seller to Buyer is concerned, Seller guarantees to you any insurance policy handed you in this escrow is a policy in force, the policy has not been hypothecated and that all necessary premiums have been paid. You are authorized to execute on behalf of the parties assignments of interest in any insurance policy (other than tide insurance policies) called for in this escrow. You are authorized to transmit for assignment any insurance policy to the insurance agent requesting that the insurer consent to such assignment, to request that a loss payee clause or such other endorsements as may be required be issued and to forward such policy to the Lender(s) and entitled party(ies). You shall not be responsible for verifying the acceptance of the request for assignment and policy of insurance by the insurance company. The parties mutually agree that you will make no attempt to verify the receipt of the request for assignment by the issuing Insurance company. All parties are placed on notice that if the insurance company should fail to receive the assignment, theissuing company may deny coverage for any loss suffered by Buyer. IT IS THE OBLIGATION OF THE INSURED OR THE INSURED'S REPRESENTATIVE TO VERIFY THE ISSUING COMPANY'S ACCEPTANCE OF THE ASSIGNMENT OF THE POLICY. S. You are not to be held responsible in any way whatsoever for any personal property tax which may be assessed against any former or present owner of the subject property described in these escrow instructions, nor for the corporation or license tax of any corporation as a former. or present owner. 9. If it is necessary, proper or convenient for the consummation of this escrow, you are authorized to deposit or have deposited funds or documents, or both, handed you under these escrow instructions with any duly authorized sub�cscmw agent, including, but not limited to, any bank, trust company, tide insurance company, title company, savings and loan association, or licensed escrow agent, subject to your order at or before close of escrow in connection with closing this escrow. Any such deposit shall be deemed a deposit under the meaning of these escrow instructions. 10. The parties to this escrow have satisfied themselves outside of escrow that the trap action covered by this escrow is not in violation of the Subdivision Map Act or any law regulating land division, zoning ordinances or building restrictions which may affect the land or improvements that are the subject of this escrow. You, as escrow holder, are relieved of all responsibility and liability in connection with suchdaws, ordinances, restrictions or regulations and are not to be concerned with any of their enforcement. 11. If any form of Purchase Agreement or amendment or supplement (collectively "Purchase Agreement") is deposited in this escrow, it is understood that such document shall be effective only as between the parties signing the Purchase Agreement. You, as escrow holder, are not to be concerned with the terms of any Purchase Agreement and are relieved of all responsibility and liability for the enforcement of its terms. Your only duty is to comply -with the instructions set forth in the escrow instructions. You are not responsible for interpreting or acting on any provision of any Purchase Agreement on which these escrow instmctions may be based and you shalt not rely on any knowledge or understanding you may have of any such Purchase Agreement in ascertaining or performing your duties as escrow holder. In connection with any loan transaction, you are authorized to deliver a copy of any Purchase Agreement, supplement or amendment and a copy of all escrow instructions, supplements or amendments to the Lender. 12. You are not to be concerned with the giving of any disclosures required by federal or state law, including, but not limited to, Real Estate Settlement ADDITIONAL INSTRUCTIONS ATTACHED HERETO AND MADE A PART HEREOF My inidals below represent my agreement and acknowledgment of the foregoing. Seller Initials: Buyer Initials: Page 1 AND BE A TRUE OR THE ORIGINAL" Procedures Act, Regulation Z - Truth -In -Lending, condition of the subject property or other warnings, or any other warranties, express or implied. 13. You are -authorized to deliver copies of all escrow instructions, supplements and amendments, estimated and final closing statements, preliminary tide reports, and notices of cancellation, if any, to the real estate broker(s), real estate sales agent(s), Lender(s), Lender's agent(s) and/or attomey(s) for the parties, upon the parties' oral or written request. You shall not incur any liability to the parties for delivery of the copies. 14. You shall make no physical inspection of the real property or personal property.described in any instrument deposited in or which is the subject of this escrow. You have made no representations or warranties concerning any such real property or personal property and are not to be concerned with nor liable for die condition of real property or personal property. 15. The parties authorize the recordation of any instrument delivered through this escrow if necessary or proper for the issuance of the required policy of tide insurance or for the closing of this escrow. Funds, instructions or instruments received in this escrow may be delivered to, or deposited with any title insurance company or tide company to comply with the terms and conditions of this escrow. 16. You are authorized to deduct from Seller's net proceeds or Buyer's net proceeds any amount which either Seller or Buyer may owe you in any other matter or transaction. You are authorized to charge, and the parties agree to pay additional escrow fees for extraordinary services not within the range of customary escrow processing, including, but not limited to, the verification of signatories to escrow instructions. 17. You are to use your usual document forms or the usual forms of any tide insurance company or, title company and in our instructions insert dates and terms on the instruments If incomplete when executed. 18. If the date by which Buyer's or Seller's performances are due shall be other than your regular business day, such performances shall be due on your next succeeding business day. 19. You shall conduct no lien or tide search of personal property regarding the sate or transfer of any personal property through this escrow. Should die party(ies) desire that you conduct a lien or title search of personal property, the party(ies) requesting the same shall deliver separate and specific written escrow instructions to you along with an agreement to pay your additional escrow fees. 20, You shall not be responsible in any way whatsoever nor are you to be concerned with any question of usury in any loan or encumbrance, whether new or of record, which may arise during the processing of this escrow. 21. The parties agree to deliver to you all documents, instruments, escrow instructions and funds required to process and close this escrow in accordance with its terms. 22. You are instructed to provide tide to the subject real property in the condition identified in the escrow instructions by the parties. You are not responsible for the contents or accuracy of any beneficiary demands and/or beneficiary statements delivered to you by the existing lienholders. You are not required to submit any such beneficiary statement and/or beneficiary demand to the parties for approval before the close of escrow unless expressly instructed to do so in writing. Should the party(ies) desire to pre -approve any such beneficiary statement and/or beneficiary demand, the party(hes) requesting the same shall deliver separate and specific written escrow instructions to you. 23. You are not to be responsible in any way whatsoever nor to be concerned with the terms of any new loan or the content of any loan documents obtained by any party in connection with this escrow except to order such loan documents into the escrow file, transmit the loan documents to the Buyer for execution and transmit the executed loan documents to the Lender. The parties understand and agree that you are not involved nor concerned with the approval add/or processing of any loan or the contents and effect of loan documents prepared by a Lender. 24. The parties expressly indemnify and hold you harmless against third -party claims for any fees, costs or expenses where you have acted in good faith, with reasonable care and prudence and/or in compliance with these escrow instructions. , 25. The parties agree that you have the responsibilities of any escrow holder only and there are no other legal relationships established in the terms and conditions of the escrow instructions. In connection with this escrow: (1) you shall have no duty or responsibility of notifying any of the parties to this escrow of any sale, resale, loan, exchange or other transaction involving any of the subject real property or personal property; (2) you shall have no responsibility or duty to disclose any benefit, including, but not 1united to financial gain, realized by any person, firm or corporation involving any of the subject real property or personal property; and (3) you shall have no responsibility or duty to disclose any profit realized by any person, firm or corporation including, but not limited to, any real estate -broker, real estate sales agent and/or a parry to any other escrow, in connection therewith, although such other transaction may be handled by you in this escrow or in another escrow transaction. If, however, you are instructed in writing by any party, Lender or other entitled person to disclose any sale, resale, loan, exchange or other transaction involving any of the subject real property or personal property or any profit realized by any person, firm or corporation to any party to this escrow, you shall do so without incurring any liability to any party. You shall not be liable for any of your acts or omissions done in good faith nor for any claims, demands, losses or damages made or suffered by any party to this escrow, excepting such as may arise through or be caused by your willful neglect or gross misconduct. 26. Notwithstanding any other provisions in these escrow instructions and in addition to other fees and costs to which you may be entitled, the parties, jointly and severally, agree that if this escrow is not consummated within ninety (90) days of the date set for closing, you are instructed to, and without further instructions, withhold your escrow hold -open fee of $50.00 per month from the funds on deposit with you regardless of who deposited such funds. The parties, jointly and severally, further agree that if you are, for any reason, required to hold funds after close of escrow, you are instructed to, and without further instructions shall, withhold a hold -open fee of $50.00,per month from the funds on deposit with you regardless of who deposited such funds. The parties irrevocably instruct you to automatically cancel this escrow file without further instructions when all funds on deposit have been disbursed. 27. Your escrow holder agency shall terminate six (6) months following the date last set for close of escrow and shall be subject to earlier termination by receipt by you of mutually executed cancellation instructions. If this escrow was not closed or canceled within the described six (6) month period, you shall have no further obligations as escrow holder except to disburse funds and documents pursuant to written escrow instructions and to interplead or otherwise dispose of funds and documents in accordance with a validly issued and validly served order from a court of competent jurisdiction. If the conditions of this escrow have not been complied with at the expiration date in these escrow instructions, you are instructed to complete the conditions at the earliest possible date, unless Buyer or Seller have made written demand upon you for the return of the funds and/or instruments deposited by Buyer or Seller and/or for cancellation of this escrow. Should demands be made upon you, you may withhold and stop all further proceedings in this escrow without liability for interest on funds held or for damages until mutual cancellation instructions signed by all parties shall have been deposited with you. The parties, jointly and severally, agree that if this escrow cancels or is otherwise terminated and not closed, the parties shall pay for any costs and expenses which you have incurred or have become obligated for under these escrow instructions, including, but not limited to, attorneys' fees, arbitration fees and costs and reasonable escrow fees for the services rendered by you. The parties agree that such costs and expenses shall be paid and deposited in escrow before any cancellation or other termination of this escrow is effective. The parties agree that said charges for expenses, costs and fees may be apportioned between Buyer and Seller in a manner which, in your sole discretion, you consider equitable, and that your decision will be binding and conclusive upon the parties. Upon receipt of mutual cancellation instructions or a final order or judgment of a court of competentjurisdiction with accompanying writs of execution, levies or garnishments, you are instructed to disburse the escrow funds and instruments in accordance with such cancellation instructions, order or judgment and accompanying writ and this escrow shall, without further notice, be considered terminated and canceled. 28. The parties shall cooperate with you in carrying out the escrow instructions they deposit with you and completing this escrow. The parties shall deposit into ADDITIONAL INSTRUCTIONS ATTACHED HERETO AND MADE A PART HEREOF bfy inftials below represent my agreement and acknowledgment of the foregoing. Seller Initials: _ _ Buyer Initials: Oil s:CERTIFIED P 'BE A TRUE Page 2 OF THE ORIGIf4AG: • 4 " 0 Mariners Escrow Civic Plaza Date: April26, 2000 Escrow No.: 2-2066-MS page 4 escrow, upon request, any additional funds, instruments, documents, instructions, authorizadow, or other items that are reasonably necessary to enable you to comply with demands made on you by third parties, to secure policies of tide insurance, or to otherwise carry out the terms of their instructions and close this escrow. If conflicting demands or notices are made or served upon you or any controversy arises between the parties or with any third person arising out of or relating to this escrow, you shall have the absolute right to withhold and stop all further proceedings in, and in performance of, this escrow until you receive written notification satisfactory to you of the settlement of the controversy by written agreement of the parties, or by the final order of judgment of a court of competentjurisdicdon. All of the parties to this escrow, jointly and severally, promise to pay promptly on demand, as well as to indemnify you and to hold you harmless from and against all administrative governmental investigation, audit and legal fees, litigation and interpleader costs, damages, judgments, attorneys' fees, arbitration costs and fees, expenses, obligations and liabilities of every kind (collectively "costs") which in good faith you may incur or suffer in connection with or arising out of this escrow, whether said costs arise during the performance of or subsequent to this escrow, directly or indirectly, and whether at trial, on appeal, in administrative action, or in an arbitration. You are given a lien upon all the rights, tides and interest of the parties and all escrow papers and other property and monies deposited into this escrow to protect your rights and to indemnify and reimburse you. If the parties do not pay any fees, costs or expenses due you under the escrow instructions or do not pay for costs and attorneys' fees incurred in any litigation, administrative action and/or arbitration, on demand, they each agree to pay a reasonable fee for any attorney services which may be requited to collect such fees or expenses, whether attorneys' fees are incurred before trial, at trial, on appeal or in arbitration. 29. ALL NOTICES, DEMANDS AND INSTRUCTIONS MUST BE IN WRITING. No notice, demand, instruction, amendment, supplement or modification of these escrow instructions shall be of any effect in this escrow until delivered in writing to you and mutually executed by all parties. AS SET FORTH ABOVE, YOU HAVE NO DUTY TO AND SHALL NOT VERIFY THE SIGNATURES OF ANY PARTIES OR NON-PARTIES UNLESS FURTHER WRITTEN ESCROW INSTRUCTIONS TO DO SO ARE RECEIVED AND THE ADDITIONAL ESCROW FEES ARE DEPOSITED. Any purported oral instruction, amendment, supplement, modification,notice or demand deposited with you by the parties or either of them shall be ineffective and invalid. You are to be concerned only with the directives expressly set forth in the escrow instructions, supplements and amendments thereto, and are not to be concerned with nor liable for items designated as "memorandum items" in the escrow instructions. 30. These escrow instructions may be executed in counterparts, each of which shall be deemed an original regardless of the date of its execution and delivery. All such counterparts together shall constitute the same document. 31. If any check submitted to you is dishonored upon presentment for payment, you are authorized to notify all parties to the within escrow, their respective real estate broker(s) and real estate agent(s) and any otter person or entity you deem in your sole discretion necessary to notify. 32. You are authorized to accept oral instructions from the parties' real estate broker(s), real estate agent(s), Lender(s) or Lender's agent(s) concerning the preparation of escrow instructions, amendments or supplements. However, you are not to act upon any instruction so delivered until you have received the same in writing signed by all parries to this escrow. 33. In these escrow instructions, wherever the context so requires, the masculine gender includes the feminine and/or neuter and the singular number includes the plural. 34. The parties acknowledge and understand that you, as escrow holder, are not authorized to practice the law nor do you give financial advice. The parties are advised to seek legal and financial counsel and advice concerning the effect of these escrow instructions. The parties acknowledge that no representadons are made by you about the legal sufficiency, legal consequences, financial effects or tax consequences of the within escrow transaction. 35. You are authorized to destroy or otherwise dispose of any and all documents, papers, escrow instructions, correspondence and records or other material constituting or pertaining to this escrow at any time after five (5) years from the date oft (1) the close of escrow; (2) the date of cancellation; or (3) the date of the last activity without liability and without further notice to the parties. 36. The parties agree to release you from any and all liability of any kind or nature and to indemnify you from any loss, damages, claims, judgments or costs of any kind or nature resulting from or related to the release or discharge of hazardous or toxic wastes on the subject property whether it occurred in the past or present or may occur in the future which release or discharge is in violation of law, in excess of any state and/or federal standards, permit requirements and/or disclosure requirements existing at this time or which may exist at a future time. The parties represent that they made their own assessment of the condition of the subject property and have not relied on any of your representations in making the assessment. The parties are advised to seek independent legal and technical environmental expert advice in assessing the risks associated with potential hazardous or toxic wastes. 37. All parties to this transaction instruct escrow holder to accept signatures forwarded herem via facsimile (faxed signatures) to close escrow, with the original thereof signed to be forwarded to Escrow Holder directly upon such faxing. WE THE UNDERSIGNED WILL FORWARD THE ORIGINAL SIGNATURES VIA REGULAR MAIL, acknowledging the Corporate Commissioner of the State of California requests original signatures on all files. 38. The parties signatures on all escrow instructions and instruments pertaining to the within escrow indicates their unconditional acceptance and approval of same and you are entitled to rely on the parties execution. We jointly and severally, acknowledge receipt of a complete copy of the within escrow instructions and by our signatures set forth below, acknowledge that we have read, understood and agreed to the same in their entirety. BUYER(S): The C&CS 1999 International Trust dated August 6, 1999 By: Ryan Steelberg, as Trustee SELLER(S): The Caldwell Community Trust established 4-29-96 By: Charles B. Caldwell, as Trustee By: Kimberly K. Caldwell, as Trustee ADDITIONAL INSTRUCTIONS ATTACHED HERETO AND MADE My initials below represent my agreement and acknowceergTeP(o),, tp't � Seller Initials: _ _ BuAPt'iniPRISPR_ C THE ORIGINAL. Q SEW PORT o ,@� CITY OF NEWPORT BEACH C'9<r FO RN�P Office of City Manager (714) 644-3002 April 17, 1996 Marilyn Sauter Mariners Escrow Corporation 190 Newport Center Drive Suite 250 Newport Beach, CA 92660 Subject: 22 Beacon Bay #12482MS Dear Ms. Sauter: Enclosed please find two original leases, a Termination of Lease, and a Memorandum of Lease. Please have all documents signed and the Memorandum and Termination of Lease notarized, and return to the City for signatures. Sincerely, Marion Brockman Executive Secretary mb enclosures City Hall • 3300 Newport Boulevard • Newport Beach, California 92663-3884 MARINERS ESCROW CORPORATION PEGGY DUCEY 3300 WEST NEWPORT BLVD. NEWPORT BEACH,CA. 92660 Attn: PEGGY DUCEY 190 Newport Center Drive. Suite 250 Newport Beach. California 92660 Port Office Box 8808 Newport Beach, California 92658 Phone (7141 640-6040 Fez (714) 721-8157 Date: April 5, 1996 Escrow No. 12482MS Subject Property Address: 22 Beacon Bay Newport Beach, CA Re: #12482MS In connection with the above numbered escrow, the following items are herewith enclosed: 1) OUR CERTIFIED COPY OF ESCROW INSTRUCTIONS 2) PRELIMINARY TITLE REPORT FROM COMMONWEALTH LAND TITLE 3) OUR CHECK IN THE AMOUNT OF $100.00 CAROL: THIS IS A PURCHASE AND WE NEED YOUR COMPANY TO ISSUE A NEW LEASE FOR THIS SUBJECT PROPERTY. WHEN COMPLETED, PLEASE CALL TO PICK UP SAME. THANKS FOR YOUR HELP IN THIS MATTER --- Sincerely Yours, Robin Funks for Marilyn Sauter APR- 4-96 THU 17: 56 MLMLL COMPARY ' FAX No 714+650+1830 P, 02 Commonwealth Land Title Company 200 West Santa Ana Boulevard Santa Ana, California 92701 (714) 835.5511 Issuing Policies Of ®Commonwealth. Land Title Insurance Company The Caldwell Company 2240 University Drive #210 Newport Beach, California Attn: Chuck Caldwell Your Ref: 22 Beacon Ray VMS DEPARTMENT FAX No. (714) 835-0513 Our No: 2601654-3 Title Officer: JIM PRASCH PRELINIINARY REPORT Dated as of Match 28, 1996 at 7:30 A.M. In response to the above referenced application for a policy of title insurance, Commonwealth Land 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 below or not excluded from coverage pursuant to the printed Schedules, Conditions and Stipulations of said policy forms. The printed Exceptions and Exclusions from the coverage of said Policy or Policies are set forth in Exhibit A attached. 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 of facilitating the issuance of a policy of title insurance and no liability is assumed hereby. If it is desired that liability be assumed prior to the issuance of a policy of title insurance, a Binder or Commitment should be,requested. Please read the exceptions shown or referred to below and the exceptions and exclusions set forth in Exhibit A of this report carefully. The exceptions and exclusions are meant to provide you with notice of matters which are not covered tinder 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. CLTA Preliminary Report Form (Rev. 111195) APR- 4-96 THU 17:57 �E CALDWELL COMPANY' FAX N0 14+650+1830 P,03 2601654 Page 2 SCHEDULE A The form of policy of title insurance contemplated by this report is: A CLTA Owners Policy The estate or interest in the land hereinafter described or referred to covered by this report is: SEE EXHIBIT "I" ATTACKED HERETO AND MADE A PART HEREOF Title to said estate or interest at the date hereof is vested in: Linda Pfleger Edwards as Trustee of the Linda Pfleger Edwards Trust The land referred to in this Report is situated in the State of California, County of Orange, and is described as follows: Lot 22 and that portion of Lot H Fronting Lot 22 and extending Northward 32 feet and that portion of Lot I fronting Lot 22 and extending Southward 28 feet to U.S. Bulkhead Line, in the City of Newport Beach, as shown on a Record of Survey Map recorded in book 9, pages 42 and 43 of Record of Surveys in the Office of the County Recorder of Orange County, California. CLTA Preliminary Report Fenn (Rev. 111/95) APR- 4-96 THU 17:58 *HE CALDNELL, 60HPANY FAX 0 714+650+1830 P,04 2601654 Page 3 EXHIBIT "I" A Leasehold Estate created by that certain lease dated June 1, 1995, executed by The City of Newport Beach, as lessor, and by Linda Pfleger Edwards as Trustee of the Linda Pfleger Edwards Trust, as lessee, for a term of 49 years commencing June 1, 1995, recorded July 6, 1995 as Instrument No. 95-0288280, Official Records, upon the terms, covenants, and conditions provided in an unrecorded lease therein referred to. CLTA Preliminary Report Fonn (Rev. M/95) APR- 4-96 THU 17:58 •THE CALDWELL COMPANY FAX N 714+650+1830 P105 2601654 Page 4 SCHEDULE B At the date hereof Exceptions to coverage in addition to the printed exceptions and exclusions in said policy form would be as follows: A. General and special taxes, including any assessments collected with taxes, to be levied for the fiscal year 1996-1997, which are a lien not yet payable. B. General and special taxes for the fiscal year 1995-1996 have been paid. Total: $12,965.74 First Installment: 6,482.87 Second Installment: 6,482.87 Homeowners' Exemption: $0 Code: 07001 Parcel: 988 88 031 C. General and special taxes for the fiscal year 1995-1996 have been paid. Total: $116.10 First Installment: 58.05 Second Installment: 58.05 Homeowners' Exemption! s0 Code: 07001 Parcel: 050 212 09 D. The lien of supplemental taxes, if any, assessed pursuant to the provisions of Section 75, et seq. of the Revenue and Taxation Code of the State of California. 1. An easement for the purpose shown below and rights incidental thereto as set forth in document Granted to: Southern California Telephone Company Purpose: Public Utilities Recorded: December 17, 1940 in book 1075 page 53, Official Records Affects: the West 5 feet CLTA P,eliminary Ropon Form (Ray. 1/1195) APR- 4-96 THU 17:59 •THE CALDWELL COMPANY FAX i 714+650+1830 P.06 2601654 Page 5 2. Terms, covenants and conditions as contained in that certain deed restriction recorded September 27, 1985 as Instrument No. 85-370232 of Official Records. Record reference is made to said document for full particulars. 3. The effect of any failure to comply with the terms, covenants, conditions, and provisions of the lease described or referred to in Schedule A. 4. Any facts, rights, interests, or claims which are not shown by the public records but which could be ascertained by making inquiry of the lessors in the lease described or referred to in Schedule A. 5. Any defect in or invalidity of, or other matter relating to the leasehold described in Schedule A which would be disclosed by an examination of the unrecorded lease described or referred to in Schedule A. 6. This Company will require that a full copy of the unrecorded lease as referred to in the Memorandum of Short Form Lease the Company has been requested to insure be furnished to this Company, together with all supplements, assignments and amendments, before issuing any policy of title insurance, 7. In connection with the trust hereinafter referred to, this Company will require that the following item be submitted for review prior to closing, (a) A Certification of Trust in the form of an acknowledged declaration signed by all currently acting Trustees, containing the information specified in the attached form. Reference: Pfleger Trust 8. Any adverse claim based upon the assertion that some portion of said land is tide or submerged lands, or has been created by artificial means or has accreted to such portion so created, 9. Any rights in favor of the public which may exist on said land if said land or portions thereof are or were at any time used by the public. 10. Rights and easements for commerce, navigation and fishery. PAYOFF INFORMATION Note No. 1: AS OF JANUARY 1, 1990, CHAPTER 598, CALIFORNIA STATUTES OF 1989, (AB 512; INSURANCE CODE SECTION 12413.1) BECOMES EFFECTIVE. THE LAW REQUIRES THAT ALL FUNDS BE DEPOSITED AND AVAILABLE FOR WITHDRAWAL BY THE TITLE ENTITY'S ESCROW OR SUBESCROW ACCOUNT PRIOR TO DISBURSEMENT OF ANY FUNDS. CLTA PmGminary Report Form (Rov, 1/1/95) APR- 4-96 THU 17:59 THE CALDWELL COMPANY FAX jo 714+650+1830 P.07 4 2601654 Page 6 ONLY CASH OR WIRED FUNDS CAN BE GIVEN IMMEDIATE AVAILABILITY UPON DEPOSIT. CASHIER'S CHECKS, TELLER'S CHECKS AND CERTIFIED CHECKS MAY BE AVAILABLE ONE BUSINESS DAY AFTER DEPOSIT. ALL OTHER FUNDS SUCH AS PERSONAL, CORPORATE OR PARTNERSHIP CHECKS AND DRAFTS MAY CAUSE MATERIAL DELAYS IN DISBURSEMENT OF FUNDS ON THIS ORDER. IN ORDER TO AVOID DELAYS, ALL FUNDING SHOULD BE WIRE TRANSFERRED. OUTGOING WIRE 'TRANSFERS WILL NOT BB AUTHORIZED UNTIL CONFIRMATION OF THE RESPECTIVE INCOMING WIRE TRANSFER OR AVAILABILITY OF DEPOSITED CHECKS. WIRING INFORMATION FOR THIS OFFICE IS AS FOLLOWS: Union Bank 500 South Main Street Orange, California 92668 ABA No. 122000496 Account No. 9120008290 PLEASE REFERENCE TITLE ORDER NUMBER AND TITLE OFFICER Note No, 2: This report is incomplete as to the effect of documents, proceedings, liens, decrees, or other matters which do not specifically describe said land, but which, if any do exist, may affect the title or impose liens or encumbrances thereon. This Company will require statetnent(s) of information from buyer, seller, and/or borrower, in order to complete this report. Note No. 3: The only conveyances affecting said land recorded within six (6) months of the date of this report are as follows: None. Note No. 4: The premium for a policy of title insurance, if issued, will be based on 100%. jp/cr CLTA Preliminary Report Foan (Rev. 111195) I MARCH 1949 ., 42 MR. SEC. 357 T6 S. R 10W. 43 s NAR80R ISLAND lel rs/�f AR.j d �• u , san• ,� sT DR/Y£ a ea en W � O l � r f ® • '� 1.A91/ a 10 4 { < 'u 210 t Q O O 17 v � � • , � w' • o a 7 O rCOAC lOF 71 2 � l I"VATE 5rl/LFA 212 p• se N' se• .f/ M' .w. env AFA 9 Ka so rz 3uTxAiie — �--- us_ rol 03 07 0e 1, • r r2jf LME As PER "MA& ~a !s•r �7 -o 0 NOTE - ASSESSOk'S aLOOK 8 ASSESSOR'S AMP O PARCEL NUMBERS BOOK SO PAGES SHOWN /N OfRaES COUNTY OF ORANGE 0 0 c� r . rJ m m r- � r 1 m w 0 ME,d D OF SfM@£Y 9- 40 93 EAST SDE Awffx Y TO BEACOk 8AY r • CITY OF NEWPORT BEACH Office of City Manager (714) 644-3002 August 8, 1995 Ms. Linda Bystedt Escrow Officer Guardian Title Co., Escrow Division 2121 E. Coast Hwy., #120-6 Corona del Mar, CA 92625 Subject: 22 Beacon Bay Dear Linda: Enclosed please find two original leases, a Termination of Lease, and a Memorandum of Lease. Please have all documents signed and the Memorandum and Termination of Lease notarized, and return to the City for signatures. Sincerely, Marion Brockman Executive Secretary mb enclosures City Hall 9 3300 Newport Boulevard • Newport Beach, California 92663-3884 MARINERS 1 ESCROW CORPORATTON 6815 190 NEWT CENTER HtCA RIVE � 2111220 NEWPORT EACH ! CALIFORNIA 92660 (�14) 6406040 �- 4Y (�J l9 J THE RDE F $ LLARS [DEC bW EKk / Flot Nlm 0 Ba k First WGYIomN Ix27 _ Interstate OMCPn�vf Bal7k Naw ececn. CA 8267J ' 11m0068 i Slim 1: 1 2000- 1: 270 i 1796 i i 00'► 'MARINERS ® ESCROW CORPORATION I670 Date: April 5, 1996 Escrow No. 12482MS ASSIGNMENT AND INSTRUCTIONS TO Property Address: ESCROW FOR PAYMENT OF REAL ESTATE 22 Beacon Bay BROKER'S COMMISSION Newport Beach, CA 190 Newport Center Drive. Suite 250 Newport Beach. California 92660 Post Office Box 8808 Newport Bcuh. Califomia 92659 Phone (714) 640-6040 Fax f714) 721-8157 Upon close of escrow, from funds received and/or held by you on my behalf you are instructed to pay the total commission of $66,000.00 due. You are to disburse said commission as set forth below, unless subsequently instructed by said broker(s) as to a different division of said commission. WE HEREBY IRREVOCABLY ASSIGN TO: Coldwell Banker, a licensed real estate broker, the sum of $ 66,000.00 ASSIGNMENT OF REAL ESTATE BROKER'S COMMISSION: Seller hereby irrevocably directs escrowholder to pay commission as set forth herein in cash from proceeds due seller immediately upon the close of escrow. No change or modification in this instruction shall be of any effect unless it is signed both by the seller and by each of the undersigned brokers. Linda Pfleger Edwards, Trustee BROKER ACCEPTS AND AGREES TO THE FOREGOING: Coldwell Banker Licensed Real Estate Broker By: Address: 2121 East Coast Highway, Suite 180 Corona del Mar, CA 92625 MARINERS ® ESCROW CORPORATION Marilyn Sauter Escrow Officer Initial Deposit Balance of Downpayment Total Consideration 190 Newport Center Drive, Suite 250 Newport Beach, Cahfornla 92660 Putt Office Box 8808 Newport Beach, California 92658 Phone (7141 640-6040 Pax (714) 721-8157 12482MS Escrow Number Aril 5, 1996 Date $ 30,000.00 $ 1,070,000.00 $ 1,100,000.00 Buyer will hand escrow holder an initial deposit of $30,000.00 and, prior to the close of escrow, will deposit the balance of the cash down pAyment and any additional funds and instruments necessary to enable escrow holder to comply with these instructions, all of which escrow holder is instructed to use provided that on or before May 3, 1996, the closing date of escrow, escrowholder holds a(n) CLTA policy of title insurance with the usual title company's exceptions, with a liability of $1,100,000.00 covering: A LEASEHOLD ESTATE IN AND TO: Lot 22 and that portion of Lot H fronting Lot 22 and extending Northward 32 feet and that portion of Lot 1 fronting Lot 22 and extending Southward 28 feet to U.S. Bulkhead Line, in the City of Newport Beach, as shown on a Record of Survey Map recorded in Book 9, pages 42 and 43 of Records of Surveys in the office of the County Recorder of Orange County, California. Seller warrants the property address to be: 22 Beacon Bay, Newport Beach, CA Showing Buyer's Interest in the Leasehold Vested in: CHARLES B. CALDWELL AND KIMBERLY K. CALDWELL, as Trustees of the Caldwell Community Trust established April , 1996 Free from encumbrances except: (1) General and special county and city taxes, not delinquent, if any together with special district levies, if any, included and collected with tax bill. (2) Covenants, conditions, restrictions, reservations, rights, rights of way, easements and exceptions of minerals, oils, gas, water, carbons and hydrocarbons on or under said land, now of record, and in deed to file, if any, affecting the use of said property. INSTRUCTIONS TO ESCROW: DELIVER ESCROW INSTRUCTIONS: Escrow Instructions shall be signed by Buyer and Seller and delivered to Mariners Escrow Corporation, the designated escrowholder, within 3 calendar days from above date. Buyer and Seller hereby jointly instruct escrowholder and broker that Buyer's deposit placed into escrow will be held as a good faith deposit towards the completion of this transaction. Escrow shall close on/or before May 3, 1996. ESCROW INSTRUCTIONS/PURCHASE CONTRACT: Buyer and Seller are hereby advised that the escrow instructions may include matters required to close this transaction which are not covered by the Real Estate Purchase Contract dated April 4, 1996. The omission from escrow instructions of any provision Continued on Page 2 INITIALS: BUYER'S INITIALS 1 CER71F/Ep t CORRECTCp 0EA UEAND E ORIGINAL rI �1 �'► MARINERS ® ESCROW CORPORATION MARINERS ESCROW Marilyn Sauter Escrow officer Continued from Page 1 190 Newport Center Drive, Suite 250 Newport Beach, California 92660 Post office Box $808 Newport Beach, California 92658 Phone (714) 640-6040 Pax (7141 721-8157 12482MS Escrow Number April 5, 1996 Date in the Real Estate Purchase Contract dated April 4, 1996, shall not constitute a waiver of the provision or the contractual rights or obligations of any party. Any change in terms or provisions of this Agreement requires mutual, written consent of Buyer and Seller. ALL CASH OFFER: Buyer shall by April 9, 1996, provide to Seller a letter from California State Bank stating written verification of sufficient funds to close this transaction. LEASEHOLD ESTATE: This transaction is contingent upon Buyers obtaining a new ground lease from the City of Newport Beach at 2 1/2W of purchase price. Escrowholders receipt of a copy of the new grounds lease approved by buyer will remove this contingency. Buyer to pay transfer fee of $100.00 to the City of Newport Beach, through escrow. The parties hereto understand that funds to the city must accompany the escow instructions and they allow escrowholder to disburse funds from buyers initial deposit. PRELIMINARY TITLE REPORT: By signing these instructions the buyers acknowledge that they have received, read and approved a copy of the preliminary title report issued by Commonwealth Land Title Company covering the subject property under order No. 2601654-3, Jim Prasch, Title officer. Approval of the preliminary title report is no longer a condition of this transaction. INSPECTIONS: Buyer's acceptance of the condition of the Property is a contingency of this escrow. Buyer shall have the right to conduct inspections, investigation, tests, surveys, and other studies ("Inspections") at Buyer's expense. Buyer shall, on or before April 21, 1996 (within 17 calendar days from date of acceptance) complete the Geological Inspection and shall notify Seller in writing of any item(s) disapproved. Buyer shall, on or before April 14, 1996 (within 10 calendar days of acceptance of offer) complete all other inspections and shall notify Seller in writing of any item(s) disapproved. PEST CONTROL: Buyer acknowledges receipt of a copy of termite inspection report dated July 11, 1995, issued by Coast Termite and Fungus Control and acknowledges that seller shall have not responsibility and/or liability in connection termite work required at the subject property. Buyer to pay for corrective termite work. RESIDENTIAL REPORT: Buyer acknowledges receipt of Report of Residential Building Records issued by the City of Newport Beach dated July 24, 1995, and as this is an "as -is" purchase Buyer assumes the responsibility and/or liability for corrections noted therein and may be completed by buyer after close of escrow. Continued on Page 3 INITIALS: BUYER'S INITIALS SELLE -" INITIALS 2 CERFECTICD COR CV,_ AND BE A 7R rI ��► 1C MARINERS OD ESCROW CORPORATION KIVV MARINERS ESCROW Marilyn Sauter Escrow Officer Continued from Page 2 190 Newport Center Drive, Suite 250 Newport Beach. Califomin 92660 Post Office Box 8809 Newport Beach, California 92658 Phone (714) 640.6040 Fax (714) 721-8157 12462MS Escrow Number April 5, 1996 Date HOME WARRANTY: Buyer is to be provided with a home warranty policy, issued by American Home Shield, the premium for which is to be paid by seller. Escrowholder's only concern with said policy shall be to pay the premium for same from seller's proceeds at close of escrow, per billing to be placed in escrow, in an amount not to exceed $300.00. HOMEOWNER'S ASSOCIATION: Buyer is aware that there is a Homeowner's Association in connection with the property being conveyed in this escrow with an annual association fee payable in the approximate amount of $750.00. Escrow is instructed to obtain a statement from said association as to the status of the account and to charge the account of seller herein with any amount owing thereon, and for any documents obtained on behalf of seller. Charge the account of Buyer with amount of transfer fee, if any. As soon as practicable, Seller shall provide Buyer, at Seller's expense, with copies of covenants, conditions and restrictions, articles of incorporation, bylaws, current rules and regulations, most current financial statements, the most recent twelve months association minutes, if available, and any other documents as required by law. Seller shall disclose in writing any known pending special assessment, claims or litigation to buyer. No warranty is made regarding the Property's compliance with any governing document or Homeowner's Association requirements, unless agreed in writing. Buyer shall be allowed 5 calendar days from receipt to review these documents and to respond to escrowholder in writing of their disapproval, if any, silence shall be deemed approval. If such documents disclose conditions or information unsatisfactory to buyer, buyer may cancel the agreement, and in such event Buyer and Seller will execute mutual cancellation instructions. FIRE INSURANCE: Buyer will furnish fire insurance to comply with the lender's requirements. Escrowholder is instructed to pay the premium for same from funds deposited into escrow by buyer at the close of escrow. INCURRED EXPENSES: Buyer and seller are aware that Mariners Escrow Corporation may incur certain expenses during the course of processing this escrow which must be paid prior to the close of escrow. Such costs may include, but are not limited to, courier fees, overnight mail service, Homeowner's Association documents/transfer fees and City Building Reports, if applicable. Escrowholder is authorized and instructed to release funds for payment of such costs, prior to the close of escrow, from funds deposited into escrow by buyer. In the event escrowholder advances funds for certain costs described above, escrowholder is authorized to reimburse escrowholder's general account upon receipt of these signed escrow instructions from both Buyer and Seller. At close of escrow, escrowholder is authorized to charge the appropriate party for costs incurred, and is released from any and all liability in connection with complying with this instruction. Continued on Page 4 INITIALS: BUYER'S INITIALS 3 SELLER' col Ecrr, r] �'► MARINERS ® ESCROW CORPORATION INPO MARINERS ESCROW CORPORATION Marilyn Sauter Escrow Officer Continued from Page 3 190 Newport Center Drive, Suite 250 Newport Beach, Califomia 92660 Post office Box 9808 Newport Beach. California 92658 Phone (714) 640-6040 Pax (7141 721.9157 12482MS Escrow Number April 5, 1996 Date PRORATIONS: Escrowholder is authorized and instructed to make the following prorations as of the date of close of escrow: (1) General and special county and city taxes based on latest available tax bill. (2) Homeowner association dues. (3) Ground rent, if applicable. BUYER'S FINAL DEPOSIT: All conditions of this escrow will be deemed to be satisfied or waived by buyer upon buyer's deposit into escrow of sufficient funds to close this escrow, and buyer's deposit of said funds shall be deemed escrowholder's unconditional authorization to proceed with closing this escrow. THE FOLLOWING IS ENTERED AS A MEMORANDUM ONLY, AT THE REQUEST OF THE PARTIES, AND REFLECTS INFORMATION THAT IS CONTAINED IN THE ORIGINAL PURCHASE CONTRACT, WITH WHICH ESCROWHOLDER SHALL HAVE NO DUTY: POSSESSION AND OCCUPANCY: Possession and occupancy of subject property shall be given to buyer upon the close of escrow or tenant vacating subject property whichever occurs later, but in any event later than May 4, 1996. AS -IS: Buyer is purchasing subject property "as -is", in its present condition, as of the time of acceptance of the offer, without warranty. Seller shall not be responsible for making corrections or repairs of any nature EXCEPT: (1) Property, including pool/spa, landscaping, and grounds shall be maintained in substantially the same condition as on the date of acceptance of offer; (2) SELLER SHALL HAVE WATER, GAS AND ELECTRICAL UTILITIES ON FOR BUYER'S INSPECTIONS AND THROUGH THE DATE OF POSSESSION IS MADE AVAILABLE TO BUYER; (3) Seller shall not be relieved of any contractural obligations, if any, including Retrofit, Pest Control, Smoke Detectors and elsewhere in the original Purchase contract or escrow instructions. NOTE TO BUYER AND SELLER: Buyer retains the right to disapprove the condition of the Property based upon items discovered in Buyer's Inspections under Paragraph 7 of the original Purchase Contract. SELLER REMAINS OBLIGATED TO DISCLOSE KNOWN MATERIAL DEFECTS AND TO MAKE OTHER DISCLOSURES REQUIRED BY LAW. REAL ESTATE TRANSFER DISCLOSURE/MELLO-ROOS NOTICE: Unless exempt, Seller shall provide to Buyer a completed Real Estate Transfer Disclosure Statement (TDS) (Civil Code Section 1102 et seq.) Seller shall provide a TDS on or before April 9, 1996 (within 5 calendar days after acceptance of the offer), unless previously provided to Buyer. Seller shall make a good faith effort to obtain a disclosure notice from any local agencies which levy on the Property a special tax pursuant to the Mello -Roos Community Facilities Act, and shall promptly deliver to Buyer any such notice made available by those agencies, if applicable. If the TDS or the Mello -Roos disclosure notice is delivered to Buyer after the offer is signed, Continued on Page 5 INITIALS: BUYER'S INITIALS SELLER' 4 CO- tf IFIF O S A i CT YOFTyEOa r� MARINERS ® ESCROW CORPORATION MARINERS ESCROW Marilyn Sauter Escrow Officer Continued from Page 4 190 Newport Center Drive, Suite 250 Newport Beach, Cohrornia 92660 Post Orrice Box 8808 Newport Beach. Catromta 92658 Phone (714) 640.6040 Pax (7141 721-8157 124S2MS Escrow Number April 5, 1996 Date Buyer shall have 3 days after delivery to Buyer in person, or 5 days after delivery by deposit in the mail, to terminate the Agreement by delivering written notice of termination to Seller or Seller's agent. In this event, Buyer and Seller shall execute mutual cancellation instructions to escrowholder. FIXTURES/PERSONAL PROPERTY: All permanently installed fixtures and fittings that are attached to the property or for which special openings have been made are INCLUDED IN THE PURCHASE PRICE, free of liens. These include, but are not limited to, electrical, lighting, plumbing and heating fixtures, fireplace inserts, solar systems, built-in appliances, screens, awnings, shutters, window coverings, attached floor coverings, television antennas/satellite dishes and related equipment, private integrated telephone systems, air coolers/conditioners, pool/spa equipment, water softeners (if owned by Seller), security systems/alarms (if owned by Seller), garage door openers/remote controls, attached fireplace equipment, mailbox and in -ground landscaping, including trees and shrubs. GOVERNMENTAL COMPLIANCE: Seller shall promptly disclose to Buyer any improvements, additions, alterations, or repairs ("improvements") made by Seller or known to Seller to have been made without required governmental permits, final inspections, and approvals. In addition, Seller represents that Seller has no knowledge of any notice of violations of City, County, State or Federal building, zoning, fire or health laws, codes, statutes, ordinances, regulations or rules filed or issued against the property. Buyer shall be allowed five (5) calendar days after receipt of notice to provide written notice to Seller of any items disapproved. Nothing in this Paragraph relieves Seller of any other obligations in this Agreement. Neither Buyer nor Seller shall be required to make repairs to the Property for any purpose, unless agreed in writing between Buyer and Seller, or required by law as a condition of closing escrow. No warranty is made concerning the presence or absence of building permits or inspections, or compliance or lack of compliance with building codes, unless agreed in writing. BUYER'S SOLE REMEDY REGARDING DISCLOSURES: Buyer and Seller acknowledge and agree that disclosures and information regarding the condition and other aspects of the Property, including those given by way of a Real Estate Transfer Disclosure Statement, may properly be provided after acceptance of the offer and that Seller, by way of additional supplemental disclosures, may in good faith, undertake to correct, modify or supplement any such disclosures, information or representations. BUYER AGREES THAT IF BUYER DISAPPROVES OR IS DISSATISFIED WITH ANY CONDITIONS SO DISCLOSED BY SELLER OR BROKERS; BUYER'S SOLE REMEDY AS TO SUCH CONDITIONS, UNLESS OTHERWISE PROVIDED IN THIS AGREEMENT, SHALL BE TO SEEK, PRIOR TO CLOSE OF ESCROW, AND WITHIN THE TIME FRAME PROVIDED BY CIVIL CODE SECTION 1102.2 (i.e. THREE DAYS AFTER DELIVERY IN PERSON OR FIVE DAYS AFTER DELIVERY BY DEPOSIT IN THE MAIL), THE TERMINATION OF THIS AGREEMENT AND THE RETURN OF BUYER'S DEPOSIT, BUYER ACKNOWLEDGES THAT SELLER'S AGREEMENT TO SELL THE PROPERTY IS MADE IN RELIANCE UPON Continued on Page 6 INITIALS: BUYER'S INITIALS SELLER'S 5 CERTIric t / CORRPCTC E TRUE ..� OPY THEOnrAND MARINERS ESCROW CORPORATION 14vo MARINERS ESCROW CORPORATION Marilyn Sauter Escrow Officer Continued from Page 5 190 Newport Center Drive, Suite 250 Newport Beach, California 92660 Post Office Box 8808 Newport Beach, California 92658 Phone (714) 640-6040 Pax (714) 721-8157 12482MS Escrow Number April 5, 1996 Date BUYER'S ELECTION AND REPRESENTATION THAT BUYER WILL PURSUE NO OTHER CLAIM, ACTION, OR REMEDY (E.G. A LAWSUIT FOR NEGLIGENT MISREPRESENTATION OR NEGLIGENT FAILURE TO DISCLOSE) AGAINST SELLER OR BROKERS ARISING OUT OF SUCH GOOD FAITH DISCLOSURES, INFORMATION OR REPRESENTATIONS. FINAL WALK THROUGH: Buyer shall have the right to make a final inspection of the property approximately 5 days prior to close of escrow, NOT AS A CONTINGENCY OF THE SALE, but solely to confirm that: (a) Seller has completed Repairs as agreed in writing by Buyer and Seller and has complied with warranty obligations, if any, and (b) the property is otherwise in substantially the same condition as on the date of acceptance of the offer, unless otherwise agreed in writing. CANCELLATION OF SALE/ESCROW; RETURN OF DEPOSITS: If Buyer or Seller provides written notice of cancellation pursuant to rights duly exercised under Paragraphs 1A, 1L, 3, 7, 9, 11, 12, 15, 21, 25, 26, 27 or 30 of the original Real Estate Purchase Contract dated April 4, 1996, the deposits, less costs and fees, as applicable, shall be returned to Buyer. Buyer and Seller understand that, in such event: (1) Buyer and Seller are each required to sign mutual instructions to cancel the transaction and escrow, and release deposits, as provided by law; (2) A party may be subject to a civil penalty of up to $1,000.00 for refusal to sign such instructions (Civil Code Section 1057.3) if no good faith dispute exists as to who is entitled to the deposited funds; (3) Fees and costs may be payable to service providers and vendors for services and products provided during escrow. In the event of a conflict between Buyer and Seller, release of Buyer's funds deposited in escrow will require mutual signed release instructions from both Buyer and Seller, judicial decision, or arbitration award. DUAL AGENCY: Buyer and seller are aware that both parties are represented in this transaction by Coldwell Banker Company and do hereby consent to such dual agency. SUPPLEMENTAL TAXES: Buyer is aware that the property will be reassessed upon change of ownership and that a supplemental tax bill will be received which may reflect an increase or decrease in property taxes based on property value. Tax bills received after close of escrow will be handled directly between buyer and seller. MARINERS ESCROW CORPORATION IS LICENSED BY THE STATE OF CALIFORNIA DEPARTMENT OF CORPORATIONS. EACH PARTY SIGNING THESE INSTRUCTIONS HAS READ THE ADDITIONAL ESCROW CONDITIONS, GENERAL PROVISIONS AND INSTRUCTIONS ATTACHED HERETO AND MADE A PART HEREOF AND APPROVES, ACCEPTS AND AGREES TO BE BOUND THEREBY AS THOUGH SAID CONDITIONS, PROVISIONS Continued on Page 7 INITIALS: BUYER'S INITIALS 6 SELLER' BE A TRUE AND OF THE ORIGINAL. ��► MARINERS ® ESCROW CORPORATION MARINERS ESCROW CORPORATION Marilvn Sauter Escrow officer Continued from Page 6 AND INSTRUCTIONS APPEARED OVER THEIR SIGNATURES. 190 Newport Center Drive, Suite 250 Newport Beach, California 92660 Post office Box 8809 Newport Beach, California 92658 Phone (714) 640-6040 Pax (7141 721-8157 12482MS Escrow Number April 5, 1996 Date The foregoing terms, provisions, conditions and instructions are hereby approved and accepted in their entirety and concurred in. The undersigned hereby agrees to pay, on demand, charges for drawing, recording and notarizing documents, charges of title company, if any, charges of lending institution, if any, and the buyer's and/or borrower's customary escrow fees, necessary to complete,this escrow. I HAVE RECEIVED A COPY OF THESE INSTRUCTIONS. BUYER: Charles B. Caldwell, as Trustee Kimberly K. Caldwell, as Trustee SELLER'S ESCROW INSTRUCTIONS: All of the terms, conditions, demands and instructions contained herein, are hereby approved and accepted in their entirety by the undersigned who will hand you all instruments and/or funds necessary to enable you to comply therewith, including deed(s) to the herein described property, all of which you are authorized to use and/or deliver, pursuant to your obtaining in this escrow for the account of the undersigned party(ies) within the time limit as provided for, the monies, being the total consideration above plus or minus above prorations and adjustments, and instruments called for under these instructions. When property being conveyed is held in joint tenancy any cash derived therefrom in this escrow shall be joint tenancy funds. From said monies, together with any necessary funds I hand you, you shall deduct and pay your seller's escrow, drawing and recording fees, also for evidence of title called for above, documentary stamps as required on Deed to property I am conveying; and you are authorized to pay off any bonds, assessments and/or taxes, also any encumbrances of record, plus accrued interest, charges and prepayment penalty if any, per written demand of beneficiary, to show title as called for above and/or necessary to comply with same. Instruct the title company to begin search of title at once. I HAVE RECEIVED A COPY OF THESE INSTRUCTIONS. SELLER: Linda Pfleger Edwards, Trustee of the Linda Pfleger Edward Trust INITIALS: BUYER'S INITIALS 7 GENERAL INSTRUCTIONS AND ADDITIONAL ESCROW CONDITIONS 1. DUTY AS ESCROW HOLDER/EXCULPATORY PROVISIONS: 1.1 The parties hereby acknowledge that Mariners Escrow Corporation has the responsibilities of an Eacrowholder only and there are no other legal relationships established in the terms and conditions of the escrow instructions. 1.7 The parties hereby acknowledge that (a) Eacrowholder is not an attorney or tax advisor: and (b) no communications between Eacrowholder and the parties hereto relating to this escrow shall be considered legal or tax advice. Mariners Escrow Corporation recommends that you seek proper legal and tax counsel before signing these instructions. 1.3 Eacrowholder shall have no obligation to inform any party of any other transaction or of facts within Eacrowholder'a knowledge, even though the name concerns the property involved herein, provided such matters do not prevent Escrowholder's compliance with these instructions. 1.4 Eacrowholder shall not be responsible for (a) the sufficiency or correctness an to form or validity of any document deposited with Eacrowholder, (b) the manner of execution of any such deposited documents, unless ouch executions occur in Encrowholder6a premises and under its supervinion, or (c) the identity, authority or rights of any parson executing any document deposited with Eacrowholder. 1.5 Encrawholder'n duties hereunder shall be limited to the safekeeping of such money and documanta received as Eacrowholder, and for the disposition of the name in accordance with the written instructions accepted by Eacrowholder in this escrow. 1.6 Unless otherwine instructed in writing, Eacrowholder shall not be required to take any action in connection with the collection, maturity or apparent outlaw Of any obligation deposited in this escrow. 1.7 Eacrowholder shall not be liublo for any of its acts or omissions unless the same shall constitute gross negligence or willful misconduct. 1.8 Escrowholder'a duty to act as Eacrowholder does not commence until these instructions, signed by all parties hereto, are received by Eacrowholder. However, release of Buyer's funds will require mutual signed release instructions from both Buyer and Seller, judicial decision, or arbitration award, pursuant to the 1994 CAR Real Estate Purchase Contract and Receipt for Deposit. 2. FUNDS RECEIVED IN ESCROW: All funds received in thin escrow shall be deposited with a State or Federal bank with other escrow funds and disburaemento shall be made by an escrow trust account check of Mariners Escrow Corporation. Checks not presented for payment within six months after data are subject to service charges in accordance with your schedule in effect from time to time. All documents and funds due the respective parties herein are to be mailed to the addresses provided to Eacrowholder. Our signatures on any documents and instructions pertaining to the escrow indicate our unconditional approval of once. Whenever provision is made herein for the payment of any a=, the delivery of any inatrumant or the performance of any act "outside of escrow", you as Eacrowholder shall have no responsibility therefore, shall not be concerned therewith and are specifically relieved of any obligation relative thereto. 3. REAL ESTATE PURCHASE CONTRACT: These escrow instructions are not intended to amend or aupercede offer to purchase on subject property between Buyer and Seller and/or any counter/addenda thereto. These items shall not be the responsibility of Eacrowholder: any such items to remain in full force and effect between Buyer and Seller with which Eacrowholder is to have no concern or responsibility, unless specifically handed to the contrary and in writing and prior to the close of escrow. In the event any Real Eaters Purchase Contract and Receipt for Deposit or any other form of Purchase Agreement in deposited in this escrow, it is understood that such document shall be effective only an between the parties signing said document. Mariners Escrow Corporation as Eacrowholder is not to be concerned with the terms of such document and are relieved of all responsibility and/or liability for the enforcement of Ouch terms and your only duty being to comply with the instructions eat out in this escrow. 4. TIME IS OF THE ESSENCE: In the event that the conditions of this escrow have not been complied with at the expiration of the time provided for herein, Eacrowholder in instructed, nevertheless, to complete this transaction at any time thereafter as soon as the conditions (except as to time) have been complied with, unless a party or parties hereto have made written demand upon Hacrowholder for the return of money or documenta deposited by same. Following receipt of such written demand not to complete the escrow, Eacrowholder is instructed to promptly mail a copy of said demand to the other party. 5. CONFLICTING INSTRUCTIONS: All notices, demands and instructions must be in writing. In the event conflicting demands or notices are made%r served upon Eacrowholder, or any controversy arises between the portion hereto or with any third person gr ing out of f relating to Chia escrow, Eacrowholder shall have the absolute right to withhold and atop all further proceed go ia, an performance of, thin escrow, until Eacrowholder receives written notification aatinfactoryCt�p�,E,�Cowholder of a contra ray by agreement of the parties hereto, or by the final judgment of a court competent jurisdict9otr{�x.A 60,F6t,hpe tine this escrow hereby jointly and severally promise and agree to pay promptly on demand, as Wei- an to Irs(d4/mpi'f n/P older and to hold Eacrowholder harmless from and against all litigation and interpleader costa, damagaasd eat � R SyQ� fees, expansion, obligations and liabilities of every kind which, in good faith, Hacrowholder may incur or ��Q 4 co=a�%y,�4 ith or arising out of this O escrow, whether said litigation, interpleader, obligation, liabilitiea or expanses r 9 w ng tha�ar£ozmaaca of f this escrow or subsequent thereto, directly or indirectly. crow, receive or become are of any conflicting demands or claims with Should Bacrowholder, before or after clogs Of as respect to the escrow, the rights of any party hereto or any funds, do emeutn or property deposited with Eacrowholder, Eacrowholder may elect to do any or all of the following: 11.1 Withhold performance of Escrowholder'a obligations and atop all further processing of thin escrow pending resolution of any conflict by and between the parties hereto: and/or 11.1 File an action in interpleader, pursuant to the section titled "Action in Interpleader". 6. AUTHORIZATION TO FURBISH COPIES AND COMPLY WITH LENDER'S INSTRUCTIONS: Eacrowholder is authorized to furnish copies of thee, instructions, supplements, amendments, notices of cancellation, closing INITIALS: BTXLER'S INITIALS SELLER'S INITIALS statements and/or any other documents deposited in this escrow, to the real estate broker(e) representing the parties an evidenced by separate commission instructions, and any lender to whom a party to this escrow had made application for a loan sad/or the attorney(s) involved in this transaction. 8eczowholder is to follow the lender(s) instructions, if nay. 7. PRORATIONS AND ADJUSTMENTS: Eacrowholder is instructed to make prorationn and adjustments on the following basis, (a) on a 30 day month, (b) taxes and assessments on the latest information from the title company, or handed Escrow Holder, (a) fire insurance from premiums shown in policy(a) handed Eacrowholder and/or an shown on beneficiary -a statement, and you may assume that necessary premium- have been paid and policy is in force, (d) interest from information shown in beneficiary statement, and (a) rents from statement handed you by Seller or agent thereof, (f) Homeownar's Association dues from statement deposited into eecraw by the Homeowner's Association or their management company. The phrase "clone of escrow" (COE) as used in this escrow in the date on which documents are recorded and relates only to prorations and/or adjustments unless otherwise specified. a. INSURANCE: 9.1 Escrow shall transmit for assignment any insurance policy delivered for use in this escrow, but shall not be responsible for verifying the acceptance of the assignment and policy by the insurance company. Eacrowholder will make no attempt to verify the receipt of the request for aanignmont by the issuing company. If the insurance company should fail to receive the assignment, the issuing company may deny coverage for any loss suffered by Buyer. It in the obligation of the Buyer or Buyer's representative to verify the acceptance of the assignment of the policy by the innuing company. 9.2 Ia instances wherein Buyer is purchasing a new policy of insurance, it shall be the Seller'a responsibility to cancel the existing insurance policy. 9. EXECUTION OF ESCROW INSTRUCTIONS AND ADDENDA: These instructions may be executed in counterparts, each of which shall be doomed an original regardless of the data of its execution and delivery. All such counterparts shall constitute one and the acme document. A party'a signature on all instruments and instruction pertaining to this escrow indicates that party'e unconditional acceptance and approval of same. No notice, demand or change or instruction shall be effective unless executed and in writing. Any amended, supplemented or additional instruction shall be subject to the foregoing conditions. 10. USURY, Eecrowholder is not to be concerned with any question of usury in any loan or encumbrance involved in the processing of this narrow and Escrowholder in hereby released of any responsibility or liability therefore. 11. DISBURSEMENT OF PUNDS: Buyer and Seller instruct Eacrowholder to disburse fonds from deposit prior to the clone of escrow as necessary per demand(a) made by lender(a) for their demand/beneficiary statement, homeowners association for their documentation as demanded, title company just prior to the closing as may be necessary: Federal Express or any other special mailing/delivery as may be deemed necessary and charge appropriate party at the close of escrow. Ia the event subject escrow does cancel, said fees will not be available to any party, but only remaining fonds at said time. 12. SIGNATURE: All parties to this transaction instruct Encrowholder to accept signatures forwarded herein via Fax Machine (faxed signatures) to close escrow, with the original thereof signed to be forwarded to Escrow Holder directly upon such faxing. WE THE UNDERSIGNED WILL FORWARD THE ORIGINAL SIGNATURES VIA REGULAR MAIL, acknowledging the Corporate Cosm:insionsr Of the State of California requests original signatures on all files. 13. DISCLOSURES: Eecrswholder is not to be concerned with the giving of any disclosures required by Federal or State law, specifically but not exclusively, RESPA (Real Estate Settlement Procedures Act), Regulation Z (Truth in Lending disclosures) or other warnings, or any warranties, express or implied. Neither is Escrow Holder to be concerned with the effect of zoning ordinances, land division regulations, or building restrictions which may pertain to or affect the land or improvements that are the subject of this aacrow. 14, SUBDIVISION MAP ACT: The parties to this escrow have satisfied themselvea outside of escrow that the transaction covered by this escrow is not in violation of the Subdivision Map Act or any other law regulating land division, and you as Eacrowholder are relieved of all responsibility and/or liability in connection therewith and are not to be concerned with the enforcement of said laws. 15. DESTRUCTION OF FILE, The parties to these escrow instructions authorize Sscrowholder to destroy these instructions and all other instructions and records in this escrow at any time after five (5) years from the close of escrow. 16. THIS AGREEMENT: This agreement in all its parts applies to, inures to the benefit of and binds all parties hereto, their heirs, legatees, devises, administrators, executors, successors and assigns, and who the context so requires, the masculine gender includes the feminine gender and neuter, and the .(Oa f//umber in r.r s the plural. All parties indemnify Eacrowholder against forgery in the execution of any/all instruct ions/,mt2 a ransaction. SOP q R b BUYER: RSCRO /Nqt W Charles B. Caldwell, Trustee Kimberly K. Caldwell, Trustee SELLER: Linda Pfleger Edwards, Trustee �. ... �.� ,......�...,va...M,w.. .�._,� .� Page 1 Message for Brockman, Marion ,m From: Delino, Ken Date: Sun, Aug 6, 1995 3:13 PM Subject: RE: #22 Beacon Bay To: Brockman, Marion if it's a new lease(and I think it is) then it's 2.5% of the new price. that means we get less rent. if it's the old lease, then the higher rent stays put From: Brockman, Marion To: Delino Subject: #22 Beacon Bay Date: Friday, August 04, 1995 4:24PM I have a Beacon Bay question.... The old lease amount is $37,880/yr. and $3,156.67 per month. It has now sold for $1,250,000 and that computes to $31,250/yr. and $2,604.17/mo. Will the monthly rental fee remain the same? I will be in the Utilities Dept. 3011 Mon., Tues., and Wed. I am having my E-Mail forwarded to Utilities while I am there. I have to finish the Lease as soon as possible. Thanks, M P.S. File is on my desk in Lobby if you need it. y�2121 E. Coast Hwy 92625 Corona Del Mar, CA 92625 (714) 644-9390 t 5 t I I •o x r A x r 6 . FAX: 8 C R O W D I V I! f O N (714) 644-2825 Attn: Marlon Brockman Newport Beach City Hall 3300 Newport Blvd Newport Beach, CA. 92663 August 2,1995 Dear Marion: Enclosed, please find certified copy of Escrow Instructions regarding 22 Beacon Bay. Sincerely, Linda Bystedt(0 4 `f Escrow Officer �/ u AK21 E. Coast Hwy.,#120•B Linda A. Bystedt, `G�T /� T W14) 6 Del Mar, CA 92625 *ESCRDATE: J OFFICER ,jl`'1� V (714) 644-9390 DATE: June 29, 1995 1 4 1 L r • C O M P A R Y FAX: (714) 644-2825 ESCROW NO: 5-8496-L Z 8 C R 0 W- D I V 1 0 1 ON TO GUARDIAN TITLE COMPANY ESCROW DIVISION. We the undersigned, hand you a copy of the Buyers letter dated June 20, 1995, Real Estate Contract dated June 23, 1995, Letter from Joe Dickerson dated June 23, 1995 and Counter Offer dated June 26, 1995. Buyer and Seller agree that the Real Estate Contract also constitutes joint escrow instructions to you as Escrow Holder. The Real Estate Contract contains agreements between the Buyer(s) and Seller(s) which do not require action on the part of the escrow holder. You are Instructed as follows: CASH THROUGH ESCROW.............................................................. $1,250,000.00 (of which the sum of $ 50,000.00 has been deposited by Buyer) Prior to close of escrow, Buyer will deposit an additional amount of $1,200,000.00 TOTAL CONSIDERATION.......................................................... $1,250,000.00 Obtain for Buyer a standard policy of title Insurance, with the Title Company's exceptions, in the amount of the purchase price. ESCROW CLOSING DATE TO BE ON OR BEFORE July 31. 1995. The legal description of the property is: LEGAL DESCRIPTION ATTACHED HERETO AS EXHIBIT A AND MADE A PART HEREOF PROPERTY ADDRESS: 22 Beacon Bay (Not Verified) Newport Beach, CA 92660 TITLE TO APPEAR VESTED IN: HERBERT C. WIESENECK and MILLI A. WIESENECK, Husband and Wife BUYER(S) TO CHECK ONE OF THE FOLLOWING: () as Joint Tenants ................................ ( ) as Community Property () none of the above, TITLE TO BE VESTED AS FOLLOWS: (please type or print) FINANCIAL TERMS: A. CLOSING FUNDS: Each party acknowledges that the close of escrow is conditioned on check clearances. Funds to close must be in the form of a Cashiers Check drawn on a bank with clearing house in the State of California OR be wire transferred to Guardian Title Escrow Division Trust Account two (2) days prior to recording of documents. ALL FINAL FUNDS IN EXCESS OF $100,000.00 MUST BE WIRE TRANSFERRED. B. HOMEOWNER'S ASSOCIATION: Buyer is aware there is a Homeowner's Association affecting the subject property, and escrow holder is to prorate the monthly Homeowner's Association Dues as of close of escrow based on current dues of approximately $63.00 per month. Buyer is aware that said homeowner association dues may change from time to time as required by said Homeowner's Association. Seller to keep association fees current to the close of escrow. Escrow Holder to obtain a written statement from the Homeowner's Association and any dues in arrears shall be deducted from Seller's proceeds at close of escrow, including all unpaid assessments or delinquencies, if any. Any transfer fees shall be charged to BUYER. Escrow Holder shall obtain a Certificate of Insurance for the lender(s) and Buyer concerning the Master Fire Insurance Policy on the property, if any. Buyer shall obtain their own fire insurance covering their furnishings and personal property and any liability Insurance outside of escrow. Seller to furnish Buyer with a copy of the Declaration of Covenants, Conditions, and Restrictions, By -Laws, Articles of Incorporation (If any), a copy of the most recent budget, reserve study and financial statement of Homeowner's Association in compliance with Civil Code 1365, and most recent six months minutes, if available, OR Escrow Holder will order documents from Homeowner's Association and charge Seller for same. Buyer will provide lender with Homeowner's Association documents, if required. (CONTINUED ON PAGE 2) EACH PARTY ACKNOWLEDGES THAT THE REAL ESTATE BROKER IS AFFILIATED WITH THIS ESCROW COMPANY. COLDWELL BANKER, WHO MAY BE SERVING AS YOUR OR ANOTHER PERSON'S AGENT OR BROKER IN CONNECTION WITH THIS REAL ESTATE TRANSACTION IS OWNED BYA COMPANY WHICH ALSO HAS AN INTEREST IN GUARDIAN TITLE COMPANY. Buyer: Herbert C. Wleseneck ThrS . a ire a certIfi ney Buyer: to 6 e Milli A. Wleseneck co y The Linda Ptieger Edwards Trust established January 21, 1991 Seller: Linda Pfleger Edwards, Trustee Legal Description A leasehold estate in and to: Lot 22 and that portion of Lot H fronting Lot 22 and extending Northward 32 feet, ad that portion of Lot 1 fronting Lot 22 and extending Southward 28 fact to U.S. Bulkhead Line, as shown on a report of survey trap recorded in Book 9, Pages 42 and 43, of Record of Surveys in the office of the County Recorder of Orange County, California Date: Aune 29, 1995 PAGE 2 of 3: Additional instructions n& a part of previous pages as if fully iroorated therein. Escrow No: 5-8496-L C. LAND LEASE: Buyers shall receive and approve the land lease, prior to the close of escrow. Escrow holder is Instructed to prorate the monthly lease payments of approximately $1,578.33, at the close of escrow. Seller to keep lease payments current to the close of escrow. Escrow holder shall obtain a written statement from the City of Newport Beach and any payments in arrears shall be deducted from Seller's proceeds, at the close of escrow. Any transfer fee shall be charged to SELLER, at the close of escrow. D. MEDIA ROOM/4 POSTER BED: Escrow holder Is Instructed to charge the Buyer and credit"the Seller, the sum of $6,000.00, at the close of escrow. Said monies represent the purchase of the media room furniture and the 4 poster bed (presently in storage). E. PRELIMINARY TITLE REPORT: Close of escrow Is subject to Buyer's approval of the Preliminary Title Report and CC&R's within 5 calendar days of receipt of same from escrow. Disapproval must be in writing to Escrow Holder, and if no disapproval is received during the time specified, this contingency shall be considered satisfied. If Seller is unwilling or unable to eliminate any title matter, disapproved by Buyer as stated above, Buyer may terminate this agreement. If Seller falls to deliver title as above, Buyer mayterminate this agreement, in which case Buyers and Sellers agree to execute cancellation instructions wherein Buyers deposit shall be returned to Buyer. F. TERMITE: Seller to provide a Termite Inspection pursuant to terms of the Sales Contract. Charge the account of the Seller for same. BUYERS SHALL BE RESPONSIBLE FOR SECTIONS I AND II. G. GOOD FUNDS LAW: Due to the Good Funds Law (AB512) there may be a delay between the time buyers new loan is funded, close of escrow (recording), and/or disbursement of sellers proceeds, dependent upon the manner or form in which the buyers new loan proceeds are disbursed by lender. Buyers are aware that Interest on new loan commences on the date the funds are disbursed by lender, and sellers are aware that Interest on existing loans of record will accrue until date payoff is received by lender, REGARDLESS OF DATE ESCROW CLOSES (RECORDING). H. RELEASE OF FUNDS: If applicable, release sufficient funds from monies on deposit to pay for credit report, appraisal, city reports, lender or association statements/documents which may be required to be paid in advance. These monies are not refundable regardless of the consummation of this escrow. ESCROW HOLDER IS INSTRUCTED TO CHARGE THE SELLER AND REIMBURSE ANY PARTY SUBMITTING A PAID RECEIPT FOR THE CITY INSPECTION. I. INSPECTIONS: In the event Escrow Holder is not notified in writing of disapproval of inspections, reports, and/or contingencies contained in the Sales Contract contingencies are waived and conditions are approved. BUYERS ARE PURCHASE SUBJECT PROPERTY IN "AS IS" CONDITION. J. SUPPLEMENTAL TAXES: Buyer and Seller are aware that the property will be reassessed by the Tax assessor as of the close of escrow. As Escrow Holder, you are hereby relieved of any and all responsibility and/or liability in connection with any future or revised tax bills. Any supplemental tax bill Issued as a result of a reassessment of subject property "prior" to the close of this escrow, shall be the responsibility of the Seller, and Buyer to pay any supplemental tax bill assessments after close of escrow. Buyer and Seller will look to each other to resolve any disputed tax bill. K. CHANGE OF OWNERSHIP: Buyer will complete a "Preliminary Change of Ownership Report" which shall be presented to the County Recorder at the same time of recordation as the Deed for the subject property. Should Buyer decline to complete said "Preliminary Change of Ownership Report", or if rejected by the County Recorder, Buyer (or Seller if required by lender) will be assessed with an additional $20.00 surcharge by the County Recorder, which shall be charged to the Buyers account (or to Seller's account if required by lender). In this event, a Standard Change in Ownership statement (Revenue and Taxation Code, Section 480) will be mailed to the Buyer by the Office of the County Assessor. Failure on the part of the Buyer to complete and return said Standard Change of Ownership mailed under authority of Section 480 within 45 days, will result in a penalty of 10% of the taxes due, after processing the reassessment caused by a change in ownership or $100.00, whichever is greater, but not to exceed the sum of $2,500.00. L. SATISFACTION OF CONTINGENCY: Buyers deposit of balance of funds shall constitute their acknowledgement that all terms, conditions and contingencies have been met. THIS COMPANY HOLDS DEPARTMENT OF INSURANCE LICENSE #297. (CONTINUED) Buyer: Buyer: Herbert C. Wieseneck The Linda Pillager Edwards Trust established January 21, 1991 This is � r��d a�4 ca�tlfjea /J correct to be copy MIIII A. Wieseneck Seller: Linda Pfleger Edwards, Trustee Dater ,tune 29, 1995 Escrow No: 5-8496-L PAGE T'of 3: Additional instructions no a part of previous pages as if fully Ineorated therein. GENERAL PROVISIONS "ADDITIONAL ESCROW CONDITIONS AND INSTRUCTIONS" t. All funds received in this escrow shall be deposited with a State or Federal bank with other escrow funds and all disbursements shall be made by a check of this Escrow Co. The parties hereto understand and agree that all funds received by you will be deposited In a non -interest bearing trust account, that no Interest will be earned by or paid to either of the parties on the funds In such trust account and that Guardian Title Company Escrow Division and Its affiliates may receive direct or indirect benefits from the depository of such trust account as a result of the aggregate balances in glll accounts established by Guardian Title Company Escrow Division and its affiliates with such depository, Including such trust account, These benefits shall beconsidered asadditional compensation to you, and no other party shall have any Interest in or rights to such benefits. 2. You shall not be responsible or liable in any manner whatsoever for the sufficiency or correctness as to form, manner of execution or validity of any documents deposited In escrow, nor as to the identity, authority or rights of any person executing the same, either as to documents of record or those handled In this escrow. Your duties hereunder shall be limited to the safekeeping of such money and documents received by you as Escrow Holder, and for the disposition of the same in accordance with the written Instructions accepted by you in this escrow. You shall not be required to take any action In connection with the collection, maturity or apparent outlaw of any obligations deposited In this escrow, unless otherwise Instructed. You shall not be liable for any of your acts or omissions done In good faith, nor for any claims, demands, losses or damages made, claimed or suffered by any party to this escrow, excepting such as may arise through or be caused by your willful neglect or gross misconduct. 3. Seller guarantees and you shall be fully protected in assuming that, as to any Insurance policies handed you, each policy is In force, has not been hypothecated and that all necessary premiums therefore have been paid. You will, as my agent, assign any fire Insurance handed you for use in this escrow. 4. Escrow to close on or before the time set forth In the sales contract. However, you may close escrow after that date unless the Sale Contract is terminated, OR Buyer or Seller has made written demand upon you for the return of monies or documents deposited by him, in which event you are Instructed to prepare cancellation Instructions. 5. All notices, demands and Instructions must be In writing. In the event conflicting demands or notices are made or served upon you or any controversy arises between the parties hereto or with third person growing out of or relating to this escrow, you shall have the absolute right to withhold and stop all further proceedings In, and performances of, this escrow, until you receive written notification satisfactory to you of the settlement of the controversy by agreement of the parties thereto, or by final judgment of a court of competent jurisdiction. All of the parties to this escrow hereby jointly and severally promise and agree to pay promptly on demand, as well as to indemnify you and to hold you harmless from and against all litigation and Interpieader costs, damages, judgments, attorney's fees, expenses, obligations and liabilities of every kind which, in good faith, you may Incur or suffer in connection with or arising out of this escrow, whether said litigation, Interpleader, obligations, liabilities or expenses arise during the performance of this escrow, or subsequent thereto, directly or indirectly. 6. These Instructions may be executed in counterparts, each of which shall constitute an original regardless of the dates of Its execution and delivery. Ali such counterparts together shall constitute one and the same document. 7. You are hereby authorized to deposit any funds or documents handed you under these escrow Instructions, or cause the same to be deposited, with any duly authorized sub -escrow agent, subject to your order at or prior to close of escrow, in the event such deposit shall be necessary or convenient for the consummation of this escrow. S. The parties to these escrow Instructions authorize you to destroy these instructions and all other instructions and records in this escrow at anytime after five (5) years from close of escrow. 9. In the event of failure to pay fees or expenses due you hereunder, on demand, I agree to pay a reasonable fee for any attorneys services which may be required to collect such fees or expenses. 10. if Seller unilaterally assigns or orders the proceeds of this escrow to be paid to other than the original parties to this escrow, such assignment or order shall be subordinate to the expenses of this escrow, liens of record on the subject property, and payments directed to be made by Buyer and Seller together. If the result of such assignment or order would be to leave the escrow without sufficient funds to close, then you are directed to close nevertheless and to pay such assignments or orders only out of the net proceeds due Seller except for such assignments or orders, and to pay them In the order in which such assignments or orders are received by you. 11. If for any reason this escrow should be cancelled you are hereby authorized and directed to use funds an deposit herein for payment of any charges herein Including but not limited to your cancellation fee. 12. You are not to be concerned with the giving of any disclosures required by Federal or State law, specifically but not exclusively, RESPA (Real Estate Settlement Procedures Act), Regulation Z (Truth in Lending disclosures) orotherwarnings, or anywarrantles, express or Implied. Neither are you to be concerned with the effect of zoning ordinances, land division regulation, or building restrictions which may pertain to or affect the land or improvements that are the subject of this escrow. 13. Parties hereto understand Escrow Holder is not required to act on facsimile Instructions. 14.Order demand/payoff statement(s) on existing liens and loans, If applicable, AND/OR order beneficiary statement(s) on loan(s) of record being taken over by the Buyer, comply with lenders' requirements and pay costs of obtaining said statements(s) from Buyer's funds on deposit Provide copies of beneficiary statement(s) to Buyer, Seiler and their agents. Buyer's signature on the beneficiary statement(s), Note and Trust Deed constitute Buyer's approval of the terms and conditions of the existing loan (a). Charge Seller for any delinquent payments, if applicable. 15. The disbursement and mailing of the pay-off checks are normally done by the Title Company. The demands normally call for accrued interest to be collected and paid up to the time the actual check Is received In the lien holder's office. Additional Interest may be calculated to allow for any mailing time, whether it be by normal mail or Federal Express. Escrow Holder Is relieved of any and all liability and responsibility for the calculation of these fees, as may be railed for in the demands. 16. Adjustments and/or prorations called for in this escrow shall be made in the following manner: Prorate taxes on real property only, based on the last tax bill in your possession or on latest available tax figures furnished by the title company. 17. Prorate rentals on rental statement(s) handed you by Seller. You are to consider on basis of said rent statement that Seller will collect all rents which fall due prior to close of escrow unless he Instructs you in writing to the contrary. Any rents in arrears are to be disregarded. 16. Prorate Interest on notes secured by trust deeds of record, based on statement of beneficiary or agent. Make all adjustments and prorations an the basis of a 30-day month. "Close of Escrow" is the day Instruments are recorded. Our signatures on any documents and Instructions pertaining to this escrow Indicate our unconditional approval of same. 19. I/Wa agree to pay escrow fees and charges as per current schedule, Including messenger fees, If applicable. Escrow Holder to provide copies to Buyer and Seller and their agents of any notices received from the other party orthelr agents. Each party signing these Instructions states they have read and approved Instructions on all previous pages. I/We Irrevocably assign the fees to escrow, whether by cancellations or closing. 20. As the undersigned Seller, the foregoing terms, provisions, conditions and instructions, are approved and accepted in their entirety and concurred in by me. I will hand you necessary documents called for on my part to cause title to be shown as above, which you are authorized to deliver when you hold or have caused to be applied funds set forth above within the time as above provided. Pay your escrow charges, my recording fees, charges for evidence of title as called for whether or not this escrow is consummated, except those the buyer agreed to pay. You are hereby authorized to pay bonds, assessments, taxes, and any liens of record, Including prepayment penalties, if any, to show title as called for. Pay Documentary Transfer Tax on dead as required. Buyer: Herbert C. Wleseneck Buyer: Milli A. Wleseneck The Linda Pfleger Edwards Trust established January 21, 1991 Seller: Linda Pfleger Edwards, Trustee ,big is A frun „_deectt o�Y Correct orr u 2121 E. Coast Hwy.,#120-B Corona Del Mar, CA 92625 (714) 644-9390 t 4 r L E - t 0 At / A N Y FAX: (714) 644-2825 B S Q R O W- D IV I s I ON INSTRUCTIONS TO: GUARDIAN TITLE COMPANY ESCROW DIVISION. PROPERTY ADDRESS: 22 Beacon Bay, Newport Beach, CA 92660 .Linda A. Bystedt Escrow Officer DATE: 06/29/95 ESCROW NO: 5-8496-L The undersigned seller(s) hereby Irrevocably assigns to the Broker(s) the proceeds of this sale through escrow to the extent of the fee due. At the close of your above -numbered escrow, you are authorized and Instructed to pay the following: Pay Commission to Coldweil Banker Residential Real Estate $62,500.00 2121 E. Coast Hwy., #180 Corona del Mar, CA 92625- TOTAL COMMISSION The Linda Pfieger Edwards Trust established January 21, 1991 Seller: Linda Pfieger Edwards, Trustee $62,500.00 rh% GP apde�rf%e co��e to be copy It ��� ❑ Mayor ❑ City Council City Manager Assistant City Manager ❑ Attorney ❑ Building ❑ City Clerk ❑ Community Services ❑ Finance-Admin ❑ Accounts Payable ❑ Data Processing ❑ Duplicating ❑ Payroll ❑ Purchasing ❑ Revenue Date ❑ A ❑ General Services ❑ Marine ❑ Personnel ❑ Planning ❑ Police ❑ Public Works ❑ Traffic ❑ Utilities ❑ Telecomm Fir•! Action & Disposition ✓✓✓❑ "' File ❑ Information ❑ Review & Comm nt Return Rem ks } n 21•21 E. Coast Hwy.,#120-B InL V Corona Del Mar, CA 92625 c (714) 644-9390 i 1 T t E • C O M r A N r FAX: 714 644-2825 ascRow.nrvice�on ( ) CITY OF NEWPORT BEACH Leases on Beacon Bay 3300 Newport Blvd. Newport Beach, CA 92660 Property Address: 22 Beacon Bay Newport Beach, CA 92660 0 Date: July 14, 1995 Escrow No.: 5-8496-L Seller: Mrs. Linda Pffeger Edwards Legal: An escrow has been opened in our office for the transfer of the above referenced property. Please furnish the following information in connection with the Homeowner's Association affecting the property: Amount of Lease Pmts $ Payable: ( ) Monthly ( ) Quarterly ( ) Yearly Are there pending increases to monthly lease payments? ( ) Yes ( ) No Lease currently paid to Make checks for Lease Pmts payable to: Transfer Fee of $ Other Fees, if Special Assessments: Please forward the following documents: Payable to: - Statement of Account - Complete copy of land lease - LEASE ASSIGNMENT - ACCEPTANCE - CONSENT FORMS Please complete, sign on the next line and return to the undersigned. FORM COMPLETED BY: We sincerely appreciate your early reply to this request. ESCROW DIVISION Linda A. Bystedt Escrow Officer n Next due date PHONE: L �'A D FIRST INTERSTATE BANK of California #137 GLTAROIAN 2121 EAST COAST HWY.. SUITE 120•B F�I�u�ffie 4605 Lankershim Boulevard 041879 , . CORONA DEL MAR, CA 92625 Bahr P.O. Box 740 .. , a o .% - u I . r u North Hollywood, CA 91603-0740 ' ESCROWNo. 5-8496-L July 27, 19 95 16�2111220 PAY ONE HUNDRED AND 00/100------------------------------------------ City of Newport Beach THE 3300 Newport Blvd. ORDER Newport Beach, CA 92660 OF ATT: Ken Delano or II'04137911' 1:1220002181:1377470970 11 GUARDIAN TITLE COMPANY DETACH AND RETAIN THIS STATEMENT. Escrow Division THE ATTACHED CHECK IS IN PAYMENT OF ITEMS DESCRIBED BELOW, IF NOTCORRECT PLEASE NOTIFY US PROMPTLY. NO RECEIPT DESIRED. ESCROW #: 5-8496-L DATE: 07/27/95 OFFICER: Linda A. Bystedt PROPERTY: 22 Beacon Bay, Newport Beach, CA 92660 SELLER: Linda Pfleger Edwards BUYER: Herbert C. Wieseneck and Milli A. Wieseneck lease transfer fee DOLLARS $k*****100.00 041379 AMOUNT ******100.00 I r obegi9 poyle & Brewer A PROFESSIONAL CORPORATION ATTORNEYS BURLEIGH J. BREWER 4041 MACARTHUR BOULEVARD EDITH M. DOYLE SUITE 350 JOSEPH C. OBEGI NEWPORT BEACH, CALIFORNIA 92660 June 6, 1995 Mr. Ken Delino Office of The City Manager, City of Newport Beach 3300 Newport Boulevard Newport Beach, CA 92663 RE: 22 BEACON BAY Dear Ken: TELEPHONE (714) 833-7024 FAX (714) 833-3133 Enclosed are the original Leases and Memorandum of Lease which have be signed by Linda Pfleger Edwards as Trustee of the Linda Pfleger Edwards Trust established January 21, 1991 as the new tenant. Please return one original Lease and a copy of the Memorandum to me once the City has executed the documents. I certainly appreciate your help and patience in getting this matter completed. Thank you very much for your consideration. Very truly yours, fleigh Bre e /enclosure cc: Linda Pfleger Edwards RECEIVE,) JUN081995� OEPOTY CITY J. ;„ CITY OF NEY)PN@1 C BURLEIGH J. BREWER EDITH M. DOYLE JOSEPH C. OBEGI May 23, 1995 Obegi, Doyle & Brewer A PROFESSIONAL CORPORATION ATTORNEYS 4041 MACARTHUR BOULEVARD SUITE 350 NEWPORT BEACH, CALIFORNIA 92660 Mr. Ken Delino Office of The City Manager, City of Newport Beach 3300 Newport Boulevard Newport Beach, CA 92663 '&M RE: 22 BEACON BAY Dear Ken: TELEPHONE (714) 633-7024 FAX (714) $33-3133 j�e discussed today by phone the enclosed leases and m—e i randum should reflect Linda Pfleger Edwards as Trustee of the Linda Pfleger Edwards T t established January 2•L, 199.1 as the new tenan . I-ha�e�ra�kezl excird en with a * to show where this designation should be inserted and have attached a separate sheet with the same information. In addition while these are being rerun you may want to insert "2211 on page 2 of the lease to reflect the correct lot number as indicated. Finally, the earlier lease was dated July 14, 1989 and the Memorandum of Lease was recorded as Instrument No. 89- 372014. 1 have noted these changes in pen on the proposed new Memorandum. Once the revised documents are ready please call and I will have someone pick them up and circulate them for signature. As always, thanks for your help and patience. Very truly yours, Leigh Br r BB/jw cc: Linda Pfleger Edwards Linda Pfleger Edwards as Trustee of the Linda Pfleger Edwards Trust established Janaury 21, 1991 • SURLEIOH J. BREWER EDITH M. DOYLE JOSEPH C. OBEGI May 10, 1995 Mr. Ken Delino Obegi, Do le & Brewer A PROFESSIONAL CORPORATION ATTORNEYS 4041 MACARTHUR BOULEVARD SUITE 350 NEWPORT BEACH. CALIFORNIA 92660 Office of The City Manager, City of Newport Beach 3300 Newport Boulevard Newport Beach, CA 92663 RE: 22 BEACON BAY Dear Ken: TELEPHONE (714) 633-7824 FAX (714) 833-3133 CITYCF�TQ pY , G99S�. \ 0?r B(gCH S I finally received copies of the recorded documentation to establish the right of Linda Pfleger Edwards as Trustee of the Linda Pfleger Edwards Trust established Janaury 21, 1991 as the proper leasehold interest Lessee for 22 Beacon Bay. Enclosed you will find a copy of an Affidavit of Trustee to establish the signature authority for the Trustee of the Harriet Pfleger Trust, a copy of the Individual Quitclaim Deed transferring title from the Trust to Linda Pfleger Edwards to reverse the transfer mistakenly made under document number 93-0257200, a Quitclaim Deed from Mark Edwards to Linda Pfleger Edwards, a married woman as her sole and separate property and a Quitclaim Deed from Linda Pfleger Edwards to Linda Pfleger Edwards as Trustee of the Linda Pfleger Edwards Trust established January 21, 1991 which should now be the proper leasehold interest Lessee for 22 Beacon Bay. While I believe these documents clear -up the title issues we previously discussed, if you need any additional documentation or information regarding this matter please let me know. The Linda Pfleger Edwards Trust is prepared to execute the new Lease form once it has been prepared. If you would call and let me know when it is ready I will see that it is promptly delivered and returned signed. In the interim if you have any questions concerning this matter please let me know. Thank you very much for your help and patience in getting this matter completed. Ve truly yours, eigh Br er BB/jw cc: Linda Pfleger Edwards - P4EASE COMPLETE THIS INFTION • RECORDING REQUESTED BY: RECORDI14G r1EQKSTED DY WESTERN ATTORNEY SERVICE AND WHEN RECORDED MAIL TO: mi Fe iz. H LLFii51 1= Recorded in .,ffici;l Records of iirai.a_ Count'..ruiifir-ig Bar,' L. Granville, Clerk -Recorder Vi . i i+ v ;•Qes. R911 a sevj Tah:x 0 110 THIS PAGE ADDED TO PROVIDE ADEQUATE SPACE FOR RECORDING INFORMATION (Additional recording fee applies) '0 11192 ~ RECORDING REQUESTABY • AND WHEN RECORDED RETURN TO: Joseph C. Obegi, Esq. OBEGI, DOYLE & BREWER, P.C. 4041 MacArthur Blvd., Suite 350 Newport Beach, CA 92660 AFFIDAVIT - DEATH OF TRUSTEE STATE OF CALIFORNIA ) ) ss. COUNTY OF ORANGE ) The undersigned, Kathleen Knight, of legal age, being first duly sworn, deposes and says: 1. George T. Pfleger as Trustor, heretofore entered into a declaration of trust dated December 18, 1985, pursuant to which THE GEORGE T. PFLEGER TRUST was established (herein, the "Trust"). 2. Pursuant to the terms of the declaration of trust, George T. Pfleger was named as the original Trustee of the Trust. 3. Paragraph 1 of Article III on page 12 of the declaration of trust provides that if George T. Pfleger died, resigned, or was otherwise was unable to continue to act as Trustee then Harriet E. Pfleger would thereafter act as successor Trustee of the Trust. 4. George T. Pfleger died on November 6, 1989, as evidenced by a certified copy of his Certificate of Death which is attached hereto and is incorporated herein by this reference. 5. George Thomas Pfleger who is mentioned in the attached certified copy of Certificate of Death is the same person as George T. Pfleger who was named as the original Trustee pursuant to the terms of the declaration of trust. 6. George Thomas Pfleger who is mentioned in the attached certified copy of Certificate of Death is the same person as George T. Pfleger who was named as Trustee to hold leasehold title to the below described property: (a) In that certain Memorandum of Lease recorded as Document #89-372014 in the Official Records of Orange County, California as to the real property located at 22 Beacon Bay, Newport Beach, California which is more particularly described in Exhibit "A" attached hereto and incorporated herein by this reference. i 7. Kathleen Knight, who is an officer, to wit, Vide -President and manager of The Bank of California N.A. is filing this Affidavit with the Orange County Recorder to establish the succession of Harriet E. Pfleger as the successor Trustee of the Trust effective as of November 6, 1989 pursuant to the aforementioned declaration of trust. The Bank of California N.A. is now acting as the Trustee of The Harriet E. Pfleger Trust. Harriet E. Pfleger acted as the Trustee of the Trust from November 6, 1989 until the Trust was terminated by her on or about August 9, 1992. 8. Leasehold titleholder of the foregoing real property until the death of George T. Pfleger on November 6, 1989 was "Linda C. Jackson, an unmarried woman and George T. Pfleger as Trustee of the George T. Pfleger Trust dated 12-18-85, as joint tenants". Subsequent to the death of George T. Pfleger the successor leasehold titleholder of the interest of George T. Pfleger as Trustee of the George T. Pfleger Trust date 12-18-85 has been "Harriet E. Pfleger as Trustee U/D/T dated 12/18/85 F/B/O Harriet E. Pfleger". The current leasehold titleholder is The Bank of California N.A. as sole successor Trustee of the Harriet E. Pfleger Trust established October 12, 1989. I declare under penalty of perjury under the laws of the state of California that the foregoing is true and correct. Dated: !S%GFo%w .zo , 1994 Kathleen Knight Subscribed and sworn to before me on ;ld)beAj ,�d > 1994. 0 (Notary Public) CARLA SMILEY U Comm.#956071 O NOTARY PUSUG CALIFORN i ORANGE COUNTY MY Comm. r%Pkn Feb. 10, 1 Mail Tax Statements To: The Bank of California N.A. attn: Kathleen Knight, 1401 Dove Street, Suite 400, Newport Beach, CA 92660 2 EXHIBIT "A" Legal Description A leasehold estate in and to: Lot 22 and that portion of Lot H fronting Lot 22 and extending Northward 32 feet, and that portion of Lot 1 fronting Lot 22 and extending Southward 28 feet to U.S. Bulkhead Line, as shown on a report of survey map recorded in Book 9, Pages 42 and 43, of Record of Surveys in the office of the County Recorder of Orange County, California h- STAY! Flit NUMBlN CERTWICATE OF DEATH STATE OF CALIFORNIA 4Rgginn7gq1 DlCmlNT KIt]ONAL DATA uwAL RIUDWeE IA. NAM! OF D[CmlNf—FF11T /D, Mom] IDRW ; +C' �+ ffANCT 4A OAT! OF OGTN--Mq DAY. YAIZG Nqw 1 SO( George , Thomas Pfleger November 6 1989 10250 M A. RAC! ]' YwrAWW� ••_�R 4 OAT! OF WR+H—M0. D.Y. YR >. AO! IN P MOD. I Y,AR Wtt3te YISARs NwfNF wY. NOIAI.A a m No Dec. 25, 1897 91 1 ' ' 4 ]TAT! OF A CIRSlN OP WHAT ,OA, FULL NAN! OF FATD!R ' OB. TAT[ G 11A FULL MAIDt?l NAM! OF MOTNp1 11� lNAi• G B'RT++ COUNTRY IL e.IrR + U.S.A. Prank Pfle er ! ZL Jose Pratt I I ItRIN 12 MWTARY SIRVIC[T 19. BOCIAL ]Ktt1Y N0. lA. MAMiwt ]TATUi I& NAM! OF 151J ry NO ]POum • WFf. qRR Wcol IIAIIO 563-10-1450 Married Harriet Smith 1BA. uwu occ\.A1A1R 1M uww Kwo OF DiMY1raR 1BC. u.0 ! I 1BD.YGRFw t7 wvcAT*N—YIAR. Corpgrate I w'No11lIIIY 1U.S. E eccal + OOOOFw11oN- Press.dent 'Elect. Motor Mfg. !Motors ! 73 16 tBA. ReRODIc.�RaT wMa Nui1 OR IDCATpN 1 +�� �,ec z1P coo. 38 Evenia Star Drive Rancho Mira e i 92270 +BD. coum I tst Nu.Fu aF TweF tw. arw M OR Faval cpwlRY yT, NAu! IIO.o Mi ce AOBRw Riverside `I TI.. CO1M1Y AM1aPet a lege r Harriet Pfleger -Wife tBA. Puce OF DGTN 11B0.'F IP. MAI. . DMA IYG COUNTY OI! IP. lR,ov. DMA I 38 Evening Star Drive Eisenhower Medical Center' 1Riveraide rcwcE DF IF +G0. EiRF1•T wDOR!]]__FRIQY Rancho Mira a CA 92270 DEATH wNo NUR,a oR tDCATAIN tYG. C1+Y I TNR wmwM. 2z WM Durx ROOiRIm ro COwwDR 39000 Bob HoRe Drive ! Rancho Mira a CAM) OfATR RwMAL MA.B; 21. OGT1 WA] CAVsI'.p i ime , Yu Ab ONLY ONE CAV]! Hm ERz FOR A. 0. AND CI Ir.M„MU= {w Cardiopulmonary Arresr: ]1 WM 6W.Y PibVwYfni v OF DGTN OtEl o � Congestive Heart Failure I 2 WM AVICMy PDbVRIRDT �I Weeks ❑ XD ' r!s 1,+D Y,8 WM R ONm M DwDO�K OAIY Dul TO IQ End Stage Aortic Stenosis °F TKb �! Months ❑ YFs Ll N, 2a oDAasus'OA"Tc°ra'^oM cowrR.olworo DUTN Dur NorRwTm To cAua <aw'ws+, sa wMOFaunoNPwae�FOR ANrcow.noNwmr]tw]>n Chronic Aspiration Pneumonitis � I C?TF TWIT M M DfIY OFNY KNOM<oQ pATx jTg wT M'� �� A� 1 �wTm Fww m! ���,'• NO oR,TIOi p tMYNCNN' TjG ARiCwf. IJCpNt Ny��q' gyp• DAn TS =A. 1MXLmoR CERTU c �t YTlYcmIwq w.C�D.cmwr uaT �IAUYRI, NOTK D.Y. •• ! G40006 mN YlAR 12TG A 10/28/89 + "1J0e G PHYSICIAN'S NAM! AND ADDRFS, RanC O Mirage, CA 7 .11/5/89 M. Hirschberg, M.D., 39000 Bob Hope Drive, P-102 1 CIRinY TWT w MY,On.ON D.w1N OCCw1m AT 2M SF FA,- MD Trt{! OF. CCRwa•: OR pgRY CORpq TM[ HMM. DAU A4I PIAC! 1TA1D) FwMI T CAUW 12LB. Wn SnAm 3TATm. 1 CDRONlRI USE 2Y. MwIRIR OF OfATN—fpy/,c NML RObI ]DA.' Rwc[ OF WAwY swk �` RMI� wRhp11Y R tp I tl N k4fwiN 1 I ]OB. w AT WOIM I ]DC. DAT! OF DMAIY ONLY MONi+t tMY. ❑ Yw{ ❑ ]2 LOC.1TRw (w11YT AAO MARct OR U IIcw ANO ORYI - 1 NO ]]• DuelaRa Now ulAwr occuMm tavon] vmcx M1Fy1m w INAAIFJ - PUNIRAL DuAND ]Ah DI]Pp61RONp' DI ]AC, 1 5'rdai`er e�` ea, s� Ne m1] ]BA ]ru,WR OF tDwwurR ]aa LIClNS! I+Po# AND Cr/Sea ! Beach,Ne rt Beach, CA NVM1W 110. O1/89 I 11/11/89 Not embalmed - LOCAL ��HA loFFuaAL OM1CTq IOR FON011 AC1wp M wlfJp' ]OB, l!C!N]! NO. il. yDryATUR! R! M R!O"TRAR Wiefels & Son, Palm Springs 1 836 X NUIYJ 98 ]TAT& RlOUITIIAR A. Q C. D. Y VAn V� E ] TRACT L7 V611 wln. ].821 MM! ND 1DIABURrs. WNrrlOUi], OR O KR ALTlRATIONB .J V -AdOO CIDIJ 830. e eq of psi us eq lsnw uoileolppoo It `111t11Nf 1F6616 0 OR 'Paled + eluwol,le0lo ams -eplsje% la AlunoO 8BOU0338 A1NnOO'NOSNHOP •N NNVHd jr / 7 *0011l10 ((A�ml Us P102e1 jo pue etil uo lit ieulBuo 04110 i� yoauoo Pue eny nil a e4 of peyUeo sl peq=M sl eleollrueo slit gONM of wewnoop gw3 .Ad00 03131ME10. e eq of pea ul eq lsnw Sa 0 id t, MRY 11 yb 0z::�rr� • P.2 $SIERNAr�OdrxtScnYilE DOC v 95-0157961 l7—APR-199S 03259 F" O&60I, a0Y1Bk1RaY/tlt, ktn Attordtd ie OiNdd ihcnrEs AM Mrfolti NBCORM MMUM M 0 arm Carta, Wifcrnia Gera L. 6rarrille, tlerk-Re ar&r lk l41kQfCdfM& JtA. aftrzonnow P» ; of 1 FMA 1 11.00 14H ambf%1"400 Tal 1 0.00 tinllfwt Rani. CA 4M60 A.P.N. N8M8031 DoaMfg NA, ttrasferLlai0aaue-nv T* no* of Ca11l4 mk NA. m root ratxrrlor Trome d Tie Bmlkt E. mqw TtRst emdAm Odow 14 I499 hm* R14MUM RELEAM AVID YOREM QtU1VMAM to gf '0 xiwM ' Fa1+eRedr. ■ aa.rded wtiptROR d fke raft tod repmk prnptLt,� I polpetty m ma city of Neepm Beams, Catmw of O ale. Stdo of odub b dcKvgxd as Sa bib In. MR* `A' comrdm6 of 'eme (1) pp attrchW hmvw rad igcotpOoated he�ln by fllir t+eldmce .Mato camltta* b ma Rr 22 &ecaa OW. NCRMd Bftch. Cdff min This dead i s M lolCtre 11iC ix>mfa•alMnda Z mmda w dw t�Yidtenl QRiid�dull)eed$m4Catimanddr11o0Ctmor'sptafa�vorfniep�e� da0ed Mach 15, 1993 sad 1LCOtdL'Q ad Apt 19, I993 rs Doeommt Nc. St3.02s .'The Budd E. P&W Dcdiw*M of Tnotdetod Oamber 12,199 tr do UM a= ss Tde 1la dd E. PfIfM TWK e+WdIW Oetd=12, M. The k of Celifurnla a,& as solo tra of ne sL A. Pilau Trpxt SstabliaLed 10 12189 D*d� .�+i�,19% sYe afilseft ICn mm Kai^ '1 tCt 1I0afL T�1�erentealr?o: The Burt of Cs1+folttia N.A., OO KOMeea Ra AK 1401 DM SUICL 5dle 400, Ncwpocl ReNk CA gm SI'Alt OF CALWOMIA ) )w COUNTY Ol'W&Ce - ) • i •' sir ,. 4k!_ i Maud KAMM Y.NMHT. pwam9,y mown to me ( - to ho de pzm Winne eewo is aubectowd 10 the Vok 11 UP[aM ad aaCl4i0fYh7 o to M tba 66 M=MW tbt5 =W is bw abdzd Cgwgmo ad thlt by bw td as the f0eplgnM ttae oWam or die mft atpan bdatE.ad'vvtddt the pmw wt4 aax aw ahe maw WtDam my band aaaad awkw apt. (i1 XI Q4 A (Notts Pubm -,Z 1 ."1y 4 v A leasdeold ataac is N d 14, Let 22 and that port'= of Lot H ftNI g La 22 W s0° U2 Pod"* of Lot I bmd-Z W 22 and p.,i M of of a k the a� of tie Cm* R wd, r .. 4 • RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: BURLEIGH BREWER, ESQ. Obegi, Doyle & Brewer, P. C. 4041 MacArthur Boulevard, Suite 350 Newport Beach, CA 92660-2511 RECORM4 REQUESTED BY WESTERN ATTORNEY SERVICE QUITCLAIM DEED rlrin R 1',rgV-Q^�si Recorded in Official Records of Orange Coup*y, California G;r-Y L. GFarM112, Clerk -Recorder Page i of 2 Fees: i 8.00 Tax. 1 0.00 The undersigned Grantors declare that the DOCUMENTARY TRANSFER TAX is: S NONE computed on the full value of the interest of property conveyed, or _ computed on the full value less the value of liens or encumbrances remaining thereon at the time of sale, or XXXX transfer is EXEMPT from tax for the following reason: This conveyance establishes sole and separate property of a spouse. APN: 988-880-31 FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, Marc Edwards, a married man does hereby REMISE, RELEASE AND FOREVER QUITCLAIM to Linda Ptleger Edwards, a married woman as her sole and separate property the real property in the City of Newport Beach, County of Orange, State of California, described as follows: See Exhibit "A" Attached Hereto and Made a Part Hereof. DATED: MARC EDWARDS STATE OF CALIFORNIA ) )as COUNTY OF ORANGE ) On this a3 day of Mh)Z64 > in the year 1995, before me, P.A-eLA 51L4I LE`I , Notary Public, personally appeared MARC EDWARDS, r proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that -he executed the same in his authorized capacity, and that by his signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. WITNESS my hand and official seal. l CARLA SMILEY MOD Comm.#956071 Notary Public 6 �� NOTARY PUBLIC CAI "ORNIA ORANGE COUNTY 0 t>ty Comm. Expires Feb. 10. 1996A V. MAIL TAX STATEMENTS TO: Linda PBeger Edwards, Trustee, 5 Harbor Island, Newport Beach, CA 92660 EXHIBIT "A" Legal Description A leasehold estate in and to: Lot 22 and that portion of Lot H fronting Lot 22 and extending Northward 32 feet, and that portion of Lot 1 fronting Lot 22 and extending Southward 28 feet to U.S. Bulkhead Line, as shown on a report of survey map recorded in Book 9, Pages 42 and 43, of Record of Surveys in the office of the County Recorder of Orange County, California RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: BURLEIGH BREWER, ESQ. Obegi, Doyle & Brewer, P. C. 4041 MacArthur Boulevard, Suite 350 Newport Beach, CA 92660-2511 Rn' r,n!" G PF..QKsTED BY WESTERN AT161i��E�Y SERVICE TiI'it'r 'sa fir:' A-1 Cr71 r- i"t�U 1t Vt V1$j e . Ow Recorded in Dffici3l Records of Dranoe County, California Gary L. ;.iranville, Clerk -Recorder Pane 1 ,,f 2 Fees. # 8.00 Tan: $ 0.00 QUITCLAIM DEED The undersigned Grantors declare that the DOCUMENTARY TRANSFER TAX is: $ NONE computed on the full value of the interest of property conveyed, or _ computed on the full value less the value of liens or encumbrances remaining thereon at the time of sale, or XXXX transfer is EXEMPT from tax for the following reason: This conveyance transfers the grantor's interest into her revocable living trust. APN: 988-880-31 FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, Linda Pfleger Edwards, a married woman as her sole and separate property a P does hereby REMISE, RELEASE AND FOREVER QUITCLAIM to �I Linda Pfleger Edwards as Trustee of The Linda Pfleger Edwards Trust established January 21, 1991 the real property in the City of Newport Beach, County of Orange, State of California, described as follows: See Exhibit "A" Attached Hereto and Made a Part Hereof. 2z DATED: 401 "PFLEGEkARDS STATE OF CALIFORNIA ) )ss COUNTY OF ORANGE ) On this 9 day of r)1ARG14 , in the year 1995, before me, (I gy-LA $IYl ILE.q . Notary Public, personally appeared LINDA PFLEGER EDWARDS, for proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that she executed the same in her authorized capacity, and that by her signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument. WIIT.XNEESSSSS.r1m�y hand �and �official seal. 1.4 Notary Public CARLA SMILEY c0 Comm. #956071 NOTARY �� • " RY PUBLIC CALIFORNIA^^ G • ORANGE COUNTY 1/ My Comm. Expires Feb. 10, 1996'6 MAIL TAX STATEMENTS TO: Linda Pfleger Edwards, Trustee, 5 Harbor Island, Newport Beach, CA 92660 EXHIBIT "A" Legal Description A leasehold estate in and to: Lot 22 and that portion of Lot H fronting Lot 22 and extending Northward 32 feet, and that portion of Lot 1 fronting Lot 22 and extending Southward 28 feet to U.S. Bulkhead Line, as shown on a report of survey map recorded in Book'9, Pages 42 and 43, of Record of Surveys in the office of the County Recorder of Orange County, California CITY OF NEWPORT BEACH Office of City Manager (714) 644-3002 May 18, 1995 Mr. Burleigh Brewer Obegi, Doyle & Brewer Attorneys 4041 MacArthur Blvd., Suite 350 Newport Beach, CA 92660 Subject: 22 Beacon Bay Dear Mr. Brewer: Enclosed please find two original leases and a Memorandum of Lease. Please have all documents signed and the Memorandum of Lease notarized, and return to the City for signatures. Sincerely, Marion Brockman Executive Secretary mb enclosures City Hall 9 3300 Newport Boulevard • Newport Beach, California 92663-3884 situated parcels most recently transferred. Exempt transfers, as defined in Paragraph 3.6(3), shall not be used to calculate Average Actual Sales Value rent. (3) "CPI" shall mean the Consumer Price Index - Los Angeles -Anaheim -Riverside Area, All Urban Consumers, All Items, published by the United States Department of Labor, Bureau of Labor Statistics (1982-1984=100). If the 1982-1984 base of said Consumer Price Index should hereafter be changed, then the new base shall be converted to the 1982-1984 base and the base as so converted shall be used. In the event that the Consumer Price Index, as.now compiled and published, shall cease to be published, then the successor Index shall be used provided that an appropriate conversion from the old index to the new index can feasibly be made. If such conversion cannot be made, or if no such index is published, then another index most nearly comparable thereto recognized as authoritative shall be substituted by agreement. (4) "Current Lessee" shall mean the person or persons who, as of April 1, 1994 (the "Cut-off Date"), was or were the Lessee under the Pre-existing Lease. (5) 'Deferred Rent" shall mean the total rent that a Current Lessee would have paid had this Lease been executed on the Effective Date, through and including the date on which this Lease was first executed, less the rent actually paid pursuant to the Pre-existing Lease, together with Interest at the rate of eight percent (8%) per annum calculated on the balance due at the end of each Lease Year or portion thereof. (6) "Effective Date" shall mean July 1, 1994. (7) "Execution Date" shall mean the date when this Lease Is executed by Lessee. (8) 'Initial Rent' shall mean the effective net rent for the Leased Land as determined by the appraisal of George Hamilton Jones, with due consideration to the leasehold advantage created by the Pre-existing Lease, all as shown on Exhibit C attached hereto and Incorporated herein by reference. (9) 'Person" shall mean any natural person or natural person(s) and does not include any corporation, association, or business entity in any form except a financial Institution or other bona fide lender acting in the capacity of a lender or an inter vivos or living trust. (10) "Pre-existing Lease" shall mean the Lease for the Leased Land which was effective on January 1, 1988, and would, absent this Lease, expire on July 1, 2006. 4 (11) "Transferred" shall mean any sale, assignment, sublease or other transaction, other than an exempt transfer as defined 1n Paragraph 3.6(3), pursuant to which the right to possession of the premises and the right to sign a new lease Identical to this Lease is transferred to another person. B. Rental Payments. Lessee shall pay annual rent in the sum ofl] , 4vu1$1wu l i utz{ )V ai tukA„($ 31 f RSb .0 0 ), payable at the rate ofj�,11 AOutauI rar (,VNdy b' k ($ 3t L 7 ) r month. Lessee shall also pay, if applicable, deferred rent (n the s rn �( ($ ) upon execution of -this Lease. Rent shall - hall no (circle one) be adjusted every seven (7) years after the date of transfer in accordance with t e provisions of Paragraph 3.13(4). Annual rent, deferred rent, and periodic adjustments are based upon the following: NB1-107371.V2 3 05/24/94 LEASE Is made and entered into as of the _ day of , 1995, by and between the CITY OF NEWPORT BEACH, a Charter City and municipal corporation ("Lessor"), and The Bank of California N.A. as Trustee of the Harriet E. Pfleger Trust ("Lessee"), regarding the real property commonly referred to as Beacon Bay Lot 22. RECITALS A. The City of Newport Beach, by virtue of a 1978 legislative grant found in Chapter 74 of the Statutes of 1978 (the 'Beacon Bay Bill"), holds the right, title and interest to certain tidelands and uplands commonly known as Beacon Bay and generally described in Exhibit A attached hereto and incorporated by reference. B. The Beacon Bay Bill frees the "Westerly portion" of the filled tidelands from the public trust and specifically authorizes the lease of the property for residential purposes subject to certain express statutory conditions. C. Beacon Bay, including the "Westerly Portion" thereof, has been divided into individual lots, with each lot leased by the City for residential purposes until December 31, 2005. D. On November 3, 1987, a majority of electors of the City approved a measure which authorized the City Council to enter into new leases of residential lots in Beacon Bay for a period not to exceed fifty (50) years. E. On November 3, 1992, a majority of electors of the City approved Measure M •which authorized the City Council to lease tidelands and waterfront property consistent with the provisions of state law. F. The City Council, pursuant to the authority conferred by the electors, entered into negotiations with current'lessees and the parties have agreed on the terms and conditions of a new lease with a fifty (50) year term, provision for adjustments in lease payments to reflect changes in the value of Beacon Bay leaseholds, and a recalculation of lease payments in the event of a transfer of the Lease by the Current Lessee or any Subsequent Lessee (as defined herein). G. Lessee acknowledges that the terms and conditions of this Lease may result in Lessee paying substantially more or less than another Lessee for similar property depending upon the date this Lease is executed, the date of any subsequent transfer, and the consideration paid for transfers of similarly situated property. H. Lessee acknowledges that accurate and complete reporting to the City of all consideration paid for the transfer of this Lease is vitally important to the City in that failure to fully reportall consideration could materially reduce the amount of rent received by the City from other Beacon Bay Lessees. I. Lessor and Lessee acknowledge that the City has agreed to a fifty (50) year term and limited lease payment Increases in consideration of provisions which require payment of rent approximating fair market rental value, without regard to any advantage maintained by Current Lessees, upon transfer by -Current Lessees and payment of deferred rent in the event the Lease is not signed on or before the Effective Date (as defined herein). J. The California State Lands Commission has reviewed the form of this Lease and determined that it Is in conformance with the provisions of relevant statutes, rules and regulations, including, without limitation, the Beacon Bay Bill. N81.18MIV20524M 0 0 RECORDING REQUESTED BY AND WHEN RECORDED RETURN TO: City Manager's Office City of Newport Beach 3300 Newport Boulevard Newport Beach, CA 92663 MEMORANDUM OF LEASE This MEMORANDUM OF LEASE is entered into as of the day of 1995, by and between THE CITY OF NEWPORT BEACH, a chartered municipal corporation ("Lessor"), and The Bank of California N.A. as Trustee of the Harriet E. Pfleger Trust ("Lessee"), to witness that Lessor and Lessee executed a lease dated , 19_, a memorandum of which was recorded on 19_, as Instrument No. in the Official Records of Orange County. By said lease, the Real Property described below was leased to Lessee until July 1, 2006. The parties agree to terminate said lease as of the Commencement Date set forth below, and to discharge and release each other from all obligations under said lease as of said date (other than delinquent rent or other charges, if any, owed by Lessee pursuant to said lease as of the termination). Lessor hereby leases to Lessee, commencing on 1995 (the "commencement Date"), and ending on July 1, 2044, on the terms and conditions set forth in that certain lease by and between the parties hereto executed concurrently herewith, all the terms and conditions of which are made a part hereof as though fully set forth herein, those certain premises in the City of Newport Beach, County of Orange, State of California (the "Real Property"), described as follows: Lot 22 and that portion of Lot H fronting Lot 22 and extending Northward 32 feet, and that portion of Lot I fronting Lot 22 and extending Southward 28 feet to U.S. Bulkhead line, as shown on the map filed In Book 9, Pages 42 and 43 of Record of Surveys, In the Office of the County Recorder, County of Orange, State of California. IN WITNESS WHEREOF, the parties have executed this Memorandum of Lease as of the date first about written. LESSOR: ATTEST: City Clerk APPROVED AS TO FORM: City Attorney STATE OF CALIFORNIA COUNTY OF ORANGE CITY OF NEWPORT BEACH By: Mayor LESSEE: The Bank of California N.A. as Trustee of the Harriet E Pfleger Trust On _, 1995, before me, a Notary Public in and for said State, personally appeared , personally known to me (or 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(hes), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. WITNESS my hand and official seal. Signature (Seal) STATE OF CALIFORNIA COUNTY OF ORANGE On _, 1995, before me, a Notary Public in and for said State, personally appeared personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose names) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/hperson(s), eor the entity upoir authorized n behalf of )which the perand that son(s) acted, cted, executed the instrumenton the . the WITNESS WITNESS my hand and official seal. Signature (Seal) 0 1 0/ 03/94 R,l.^-.T rjTTnc CTTY OF NEWPORT BEACH BUSINESS H16TORY -----------_ c------- CYCLE TAX/PE?, _XEMPT --CREDIT ,GAME - r------.--- C=f7UTr= 4nnDCcc ------- RT1 , Tmc cnnc+ccm -- 6 PAGE 1 2BB-00a. ^-0 $ACIES-0;,, LIUDA W to N Y$940 0,2.. ROPERTY ID 050-ele-093 2 BSACON BAY 1111 )WAYSIDE OR2 STE 2 O {) ;E)4 ETD DEFINE)NEWPORT BEACH CA 92660 CORONA DEL MAR, CA 9262S (TO DEFINE)6tTO cF NF 7iTO DEFINE)SERVXcE SILLING REF CURRENT ADJUSTMENTS TAX PENALTY INTEREST BALANCE12 to BB-L-LEASE: 1994-05 BILLED 05/01/94 3,437.50 .00 .00 137.50 .00 DUE 06/01/94 PAID 5,43T.50 .00 137.50 .00 .00 t4tt t512 LEASESO-LEAVE 1994-06 BILLED 06/17/94 3,156.67 .00 .00 .00 .0 16 3 iDUE 07/01/94 PAID 3�1E6.sGT .00 . 00 LEASEEO-LEA F- 1?)9-5--97 BILLED 07/19/vj4 si156.67 .00 .00 .00 ,00 .OU .00 La14 9 1s WE 0" 01/94 PAID 3 56.67 .AO i16 LEASESO-LEASE 1994-08 BILLED 08/16/94 3,156.67 .00 .00 .00 .00 F 17 DUE 09/01/94 PAID 3,156.67 .00 .00 .00 .00 z3,s LEASESO-LEASE 1994-09 BILLED 09/20/94 3,156.67 .00 .00 .00 .00 2ato DUE 10/01/94 PAID O9/27194 3r156.67 .0O pO .OU ,1i0 5a,zi SERVICE BEILLINCZ RE.F DATE BATrH DEFO?SIT BILLING PAYMENT - - DESCRI T O1 - O" O2 LEASES 1994-05 06/17/94 0.00 3575.00 0.00 POST/UPDATE NEW BILLING-- dilly3 PAYMENT 1994-05 07/06/94 R42425 0.00 0.001301 wally 3t4 TOTAL 1994-OS 0.00 3575.00 3437.50 TOTAL BILLING REF willsi LEASE IT9 01-- 06/17/94 0.00 3156,67 0.00 POST/'UPDATE NEW BILLING Willy i PAYMENT 1994-0 07/13/94 P427SI 0.00 0.00 3E94.1T Mid Willys74 9RI TOTAL 1 94-tat+ €-.00 3156.67 3Z94 1'7 TOTA ILL E 6sLEASE 1994-07 07/19/94 0.00 3156.67 0.00 BILLED Willy PAYMENT 1994-07 08/05/94 RPOB0594 0.00 0.00 3156.67 WillyPAYMENT 1994-07 08/12/94 RP081294 0.00 0.00 3156.67 Wili1 TOTAL 1IT4-07 0.00 3IS6.G7 6'313.34 TOTAL BILLING REF Willy2, LEASE 19J4'-0$ OS/16/94 0.O'D 3156167 9- 00 BILL ED W3I3yg4 PAYMENT 19=t4-0Z 08/16/94 T #-?. 694 , OQ 0 16 A 4 PAYMENT 1994-08 08/E9/94 R45056 0.00 0.00 3156.67 - Willy s PAYMENT 1994-08 08/30/94 45717 0.00 0.00 3156.67 6 PAYMENT 1994-08 09/09/94 RP090994 0.00 0.00 1'"-.6.n E 371PAYMENT 1994-0? 09/14/94 R45656 0.110 0,00 3456.67 Willys' TOTAL 1994-0? 0.00 3156,67 IW783.35 TOTAL BILLING REP Willy stP ` 9 Ya -- a? '0 / 9 9 4607 I Sr, A ' < 52 LEASE 1994-09 09/20/94 0.00 3156.67 0.00 BILLED willy s41 PAYMENT 1994-09 09/20/94 CREDIT 0.00 0.00 3155.67 CREDIT APPLIED Willy 2 PAYMENT 1994-09 09/27/94 46480 0 00 0.AO 'z15-7W- I IV -2 TOTAL 1?9--;,:� 0,00 3156.r37 i470.01 TOTAL BILLING REF Willy4TOTAL 0.00 16801 .6S 3• �- so 3f r S^a. TOTr�J. r�U•-.IN's.•_., Willy s 61 s 4Ss•o( s271 1751 7 75 1 L UN DATE 10/03/94 TIME 08-1`:36 PEI - COUNT SYSTEMS - RECEIVABLE MANAGER. - a ,-;a r • • 12/09/94 To: Ken Fr: Irene Re: 22 Beacon Bay - Linda Pfleger Edwards. 10/07/94 Marion called Burleigh Brewer and told him that 22 Beacon Bay has been making multiple payments (overpayments). Brewer stated that he will call the "Bank" regarding overpayments. Nothing in the file presently indicates that this has been resolved. But, this may mean that it'has been resolved... 9/12/94 Ken called Burleigh Brewer, told him we need copies of all items/ quit claims, whatever, and evidence of any money exchanged. Nothing in the file indicates that he has sent this information. /s— doccJ�✓IP•vlc�7la�v s�ioc�lkq � ��qiw �� �'jf�� ��2oltl�iy c�q Jt9e�Sa�U t0 ;A-1 p�SSpSs, or✓ .CITY QF NEWPORTO BEACH Parks, Beaches & Recreation Commission 10 \\\\k \or, November 1, 1994 Page 5 Citv Council Chambers 7 n. in. INDEX Activity at 7:00 A.M. is too early and lights are often on after 10:00 P. at-shine-inte-h' me. He personally lights Friday evening when were not in _-tumed-6fflthhe use. He also suggested noise blockage adjacent Pacific View which is in the direction of the prevailing win S. Carol Fallon, 2672 San Joaquin Hills Road, addresse the Commission and presented a petition signed by 11 esidents of the Bayport Apartments in support of more c trol over excess noise, trespassing.and lighting. She s ed the lights are often on after 10:15 P.M. and she fee :00-9:30 P.M. is a more reasonable hour. In additi ,practice sometimes starts at 6:30 A.M. Karen Kopicki,l0 Crest ircle, addressed the Commission and requested the ac ' sties start later in the morning and end earlier in the ening. She stated more neighbors would have b n present had they known about tonight's meeting. Te Coville, 2481-A Irvine Avenue, addressed the ommission on behalf of Orange County United Soccer Club Wltich utilizes the fields, Mr. Coville explained their program and stated their coaches are all informed of the rules. He agreed ss te-the-timer-is-te and that a rued people use the fields. He asked that complaints concerning their program be directed to him. In response to a question from Commissioner Grant, r. Coville stated their group would help contribute yards a better timing device. Pat Beek, 528 S. Bay Front, addr ed the Commission. Ms. Beek stated she is Presi t of NewportBeach East Little League and expl ' ed their program which starts the end of February. y supply trash receptacles and instruct their manager n the use of the lighting system. The area closest to cific View is used by the younger children whose ents are more energetic and vocal. They hold a mini arade by special event permit on opening day, March 11, nd use no whistles except on closing day. Russ Har t, W4't Port A1hans;-addressed the Commission on behalf of AYSO. Mr. Hardt explained their schedule, noting that players arrive at 7:30 A.M. for 8:00 A.M. games. He pointed out their participation has increased to 1,350 and field space is at a premium. 0 1 • TO: Ken DATE: 8/31/94 FR: Irene RE: Lot 52 Transfer History. ---------------------------------------------------- 3/9/90 Lease recorded between the City and "Nancy E. Wright, an unmarried woman, and Ralph S. Zaun, a married man as his sole and separate property as joint tenants." Ralph Zaun was Nancy E. Wright's father and has since died. There is no date of death. The attorney's letter dated 7/14/94 states that Nancy E. Wright "may have conveyed title at one time or another by quitclaim deed to herself as Trustee of her own revocable living trust and then back to herself individually." There is no record of any such transfer in the City Clerk's file. Nancy E. Wright borrowed significant funds from the Harriet E. Pfleger Trust (where she was a co -Trustee with Mrs. Pfleger.) These borrowings were secured by a first deed of trust executed by Nancy Wright in favor of the Harriet E. Pfleger Trust. After Mrs. Pfleger died (on 8/28/93), Nancy Wright's relationship with the Pfleger family and trusts ended. She could not repay her borrowings secured by the first deed of trust on 52 Beacon Bay. She agreed to execute a deed transferring her ownership of 52 Beacon Bay to the Trust rather than force the Trust to institute a formal foreclosure. (Trust has taken the position with Ms. Wright that transfer of the property to the Trust was in satisfaction of the $600,000 debt owned the Trust). The deed was executed by Ms. Wright on 5/18/94. There is no record of this deed in the City Clerk's file. The attorney's letter states that the property is owned by The Bank of California N.A. as successor Trustee of The Harriet E. Pfleger Trust. TO: Ken DATE: 8/31/94 FR: Irene RE: Lot 22 Transfer History. I've put together this timeline using the attorney's letter dated July 14, 1994 and the chunky brown file from the City Clerk's office. 7/14/89 Lease between City and "Linda C. Jackson, an unmarried woman and George T. Pfleger, Trustee of the George T. Pfleger Trust as joint tenants." A copy of this lease is in the Clerk's file. 7/14/89 Memorandum of Lease was recorded. This is in the Clerk's file. 11 /6/89 George T. Pfleger died and Linda C. Jackson became sole owner of the property. In a letter to Kevin Murphy dated 10/19/92, the attorney mentions George's death and their intent to effect two transfers: (1) Transfer from joint tenancy situation to the Trust of the surviving joint tenant .and (2) " [tjhereafter, the property will be sold to the Harriet E. Pfleger Trust...:' Note that there was no recording of these transfers in the City Clerk's file. The following information is contained solely in the attorney's letter. There are no corroborating documents in the Clerk's file. ????? Linda C. Jackson, now known as Linda Pfleger Edwards transferred ownership by quitclaim deed to herself and Nancy E. Wright as Trustees of Linda's revocable living trust. 4/19/94 Trustees of Linda's revocable living trust transferred title back to Linda Pfleger Edwards individually. The attorney's letter states that this transfer was recorded on this date, but there is no record in the brown City Clerk's file. 4/19/94 By quitclaim deed, recorded 4/19/94, Linda Pfleger Edwards sold the property to her mother, Harriet E. Pfleger and Nancy E. Wright as Trustees of the Harriet E. Pfleger Trust (which was her mother's revocable living trust). 8/28/93 Mrs. Pfleger dies and her living trust becomes irrevocable. The attorney's letter states that they are in the process of recording an affidavit setting forth the fact of her death and a quitclaim deed from Nancy E: Wright who has resigned as a Trustee of Mrs. Pfleger's Trust to The Bank of California as successor Trustee. 08-30-1994 11:20AM • Otegi, Doyle & Brewer A PROFE6610NAL CORPORATION ATTORNEYS BVRLEIGH J. BREWER 4041 MACARTHUR 0OU49VAR0 COITH M. DOYLE SUITE 350 JOSEPM C. *Beef NEWPORT BEACH, CALIFORNIA 02e$O-2$11 FACSIMILE COVER SHEET DATE: August 30, 1994 TO: KEN DELINO 644-3020 FROM: Burleigh Brewer RE: 22 Beacon Bay and:52. Beacon Bay (Pfleger Properties) 714833313615261 P.01 TELEPHONE (7141 B33.7GR4 FAX (714) a33-313s KEN: AS WE DISCUSSED THE LESSEE FOR EACH OF THE RESPECTIVE PROPERTIES NOTED ABOVE SHOULD READ AS FOLLOWS: 22 BEACON BAY: Linda Pfleger Edwards as Trustee of The Linda Pfleger Edwards Tnisi established. January 21;, 1991 52 BEACON BAY: The Bank of California N.A. as successor Trustee of The Harriet E. Pfleger Trust established October 12, 1989 If these lessees are acceptable to the City we are prepared to have the new lease forms executed immediately by the respective Trustees. Please let me laoow how you want us to proceed and we will follow up immediately. Thanks for your help. �� This message is intended only for the use of the individual or entity to which'•it is addressed, and may -contain information that is privileged, confidential and exempt from disclosure under applicable law. If the reader of this message is not the intended recipient, or the employee or agent responsible for delivering the message to the intended recipient, you are hereby notified that any dissemination, distribution or copying of this communication is strictly prohibited. If you brave received this commuaication in error, please notify us immediately by telephone, and return the original message to us at the above address via. the U.S. Postal Service. Thank you. SURLEIGH J. BREWER EDITH M. DOYLE JOSEPH C. OBEGI July 29, 1994 Obegig Doyle & Brewer A PROFESSIONAL. CORPORATION ATTORNEYS 4041 MACARTHUR BOULEVARD SUITE 350 NEWPORT BEACH. CALIFORNIA 92660 Ken Delino Office of the City Manager City of Newport Beach City Hall 3300 Newport Boulevard Newport Beach, CA 92663 RE: 22 & 52 BEACON BAY Dear Ken: TELEPHONE (714) 833-7824 FAX (714) 833-3133 Thank you very much for your phone call this morning concerning our earlier request for your input as to the proper tenant for the 11Pfleger Properties" at 22 and 52 Beacon Bay. It is my understanding that you have extended the deadline within which to execute the new Lease to August 31, 1994 to allow you time to review our request and other items relating to the Leases that have not yet been signed by other property owners in Beacon Bay. I appreciate your thoughtfulness in giving us this courtesy. As I indicated to you in our phone conversation my partner, Joe Obegi, and I are more than willing to sit down and meet with you or anyone else within the City to discuss how best to resolve the Pfleger property ownership situation. We have no intent to deceive the City as to any prior transfers and are on!interested in working P out the most ex Prlitious way of placing 1' y -- ., � pg the proper tenant on title for the properties. I appreciate your help in getting this resolved and look forward to hearing from you on your return from vacation. Thank you again for your consideration. Ve ry truly yours, BB/jw • ®begi, Doyle & Breuer A PROFESSIONAL CORPORATION ATTORNEYS BURLEIGH J BREWER 4041 MACARTHUR BOULEVARD EDITH M. DOYLE SUITE 3SO JOSEPH C. OSEGI NEWPORT BEACH, CALIFORNIA 92660 July 19, 1994 Mr. Ken Delino City of Newport Beach City Hall 3300 Newport Blvd. Newport Beach, CA 92663 RE: 22 AND 52 BEACON BAY Dear Mr. Delino: TELEPHONE (714) 833-7824 FAX 1714) 833-3133 Following up my letter to you of July 14, 1994 with respect to the property at 52 Beacon Bay, I have some additional transfer information. In my earlier letter I had stated that title to the city lease on that property was held by Nancy Wright and Ralph S. Zaun as joint tenants. At the time, I did not know who Ralph S. Zaun was. It turns out that he was Nancy Wright's father who has subsequently passed away leaving title vested in Nancy Wright as surviving joint tenant. Very truly yours, � s� O . J eph C. Obegi I/ JCO/mis cc: Kathleen Knight John P. King, Jr., Esq. Thomas G. Pfleger Linda Pfleger Edwards 2 oer I1994 �P�,�. . _w / w �. ®begs, Doyle & Brewer A PROFESSIONAL CORPORATION ATTORNEYS BURLEIGH J. BREWER 4041 MACARTHUR BOULEVARD H� D*B'L t�'HC EDITH M. DOYLE SUITE 350 �', � �`' t714) 033 J 05EPH C. OBEGI N EWPO RT BEACH, CALIFORNIA 92660 July 14, 1994 Mr. Ken Delino City of Newport Beach City Hall 3300 Newport Blvd. Newport Beach, CA 92663 RE: 22 AND 52 BEACON BAY Dear Mr. Delino: I am writing this letter in response to our several telephone conversations with respect to the above two properties in Beacon Bay now owned by our firm's client, The Bank of California N.A. which is acting as successor Trustee of The Harriet E. Pfleger Trust established October 12, 1989 (herein, the "Trust"). The Trust wants to execute the new city lease on 22 Beacon Bay prior to July 31, 1994 and may want to execute the new lease on 52 Beacon Bay as well. The purpose of this letter is to formally request your determination as to what documentation the city will require for the Trust to execute the new leases. Title, in each case, under the new lease would be as follows: "The Bank of California N.A. as successor Trustee of The Harriet E. Pfleger Trust established October 12, 198911 Your contact with respect to the Trust (e.g. billings, ordinary correspondence, etc.) would be as follows: Kathleen Knight vice -President and Manager The Bank of California N.A. 1401 Dove Street, Suite 400 Newport Beach, CA 92660 (714) 252-3311 You have asked for a summary discussion of the various transfers with respect to these two properties which have occurred since the existing city leases were executed. That discussion is as follows: I. 22 Beacon BX : This lease was executed with the city on July 14, 1989 by Linda C. L Obegi, Doyle & Brewer A PROFESSIONAL CORPORATION ATTORNEYS Mr. Ken Delino 0 July 14, 1994�,5 Page 2 O L Jackson and her father, Pfleger's interest was trust. {4 V ✓ George T. Pfleger as joint tenants. Mr. held by him as Trustee of his revocable George T. Pfleger died several months later on November 6, 1989. At that time his daughter, Linda C. Jackson, became the sole owner of the property. Sometime subsequent to execution of the lease, Linda (now known as Linda Pfleger Edwards) transferred ownership by quitclaim deed to herself and Nancy E. Wright as Trustees of Linda's revocable living trust. By quitclaim deed recorded April 19x_ 1994— the Trustees of Linda's revocable living trust transferred title back to Linda Pfleger Edwards individually. By quitclaim deed recorded April 19, 1994 Linda then sold the property for $1.7 Million to her mother, Harriet E. Pfleger and Nancy E. Wright as Trustees of The Harriet E. Pfleger Trust which was her mother's revocable living trust. Current rent on the property is apparently $41,250 which is almost equal to what should be the adjusted rent at 2.5% of the purchase price ($42,500). Mrs. Pfleger died on August 28, 1993 at which time her living trust became irrevocable. We are currently in the process of recording an affidavit setting forth the fact of her death and a quitclaim deed from Nancy E. Wright who has resigned as a Trustee of Mrs. Pfleger's Trust to The Bank of California as successor Trustee. With the exceptions of the inter -family sale which occurred last year and the subsequent death of Mrs. Pfleger, none of the other transfers and related documents should have resulted in a rental adjustment. Due to Mrs. Pfleger's death we have had the property appraised and find that the fair market value of the property, including improvements, is significantly less than $1.7 Million. As stated above, it is the Trust's desire to execute the new city lease prior to July 31 with the expectation that under the new lease the rent would be adjusted from $41,250 (or $42,500) annually down to $37,880 annually in accordance with the new lease. Please verify for me that this would be the new rent. This property is currently listed for sale. There is one other issue with respect to 22 Beacon Bay that you may be able to assist me with. Specifically, is there a tidelands u,hi c� OApSLee -t- Olegiy Doyle & Brewer A PROFESSIONAL CORPORATION ATTORNEYS Mr. Ken Delino July 14, 1994 Page 3 lease with the County and/or an encroachment permit with the County on this particular property? If so, I need to get that lease / permit updated to reflect the Trust as Tenant / Permittee. I would appreciate your letting me know anything you may have on the subject. II. 52 Beacon Bay,: It is my understanding that this dated March 3, 1990 with Nancy E. tenants. property is leased under a lease Wright and Ralph S. Zaun as joint I have no idea who Ralph S. Zaun is. I have calls in to several people who may know but I have not heard back from any of them. I suspect, based upon the legal work performed by other firms, that Mr. Zaun's interest in the property must have been assigned by him to Ms. Wright some time ago. I have been told by a number of people knowledgeable on the subject that, until very recently, Ms. Wright was the sole owner of this property. There is the possibility that Ms. Wright may have conveyed title at one time or another by quitclaim deed to herself as Trustee of her own revocable living trust and then back to herself individually. In any event, Ms. Wright borrowed very significant funds from The Harriet E. Pfleger Trust (the "Trust" as described above) of which she was a Co -Trustee with Mrs. Pfleger. Such borrowings were secured by a first deed of trust executed by Ms. Wright in favor of The Harriet E. Pfleger Trust. Subsequent to Mrs. Pfleger's death on August 28, 1993, Ms. Wright's relationship with the Pfleger family and trusts was terminated. She could not repay her borrowings secured by the first deed of trust encumbering 52 Beacon Bay. She agreed, in order for the Trust to obtain immediate control and possession (particularly since the Trust was then making the monthly lease payments to the city), to execute a deed transferring her ownership of 52 Beacon Bay to the Trust rather than force the Trust to institute a formal foreclosure under its deed of trust. The Trust has taken the position with Ms. Wright that transfer of the property to the Trust was in satisfaction of $600,000 of Ms. Wright's debt to the Trust. The deed was executed by Ms. Wright on May 18, 1994. This property is, therefore, owned by The Bank of California N.A. as successor Trustee of The Harriet E. Pfleger Trust established October 12, 1989. Depending upon your characterization of the o a satisfactory explanation of what has these two properties. We look forward that we can get one or both leases ®begi, Doyle & Brewer A PROFESSIONAL CORPORATION ATTORNEYS Mr. Ken Delino July 14, 1994 Page 4 above transfers, the Trust may or may not want to execute the new city lease prior to July 31. If the new lease is executed, it is my assumption, which I ask that you verify, that the rent would be adjusted upward from $12,750 annually to $13,927 annually. The property is currently listed for sale. I hope that the above is transpired with respect to to vour cruick response s ex DATE C -Ti FoR WHILE YOU WERE OUT PLEASE CALL TELEPHONED � a�vFse� 0 0\ Z441 a % CITY OF NEWPORT BEACH Office of City Manager (714) 644-3002 C October 30, 1992 Mr. John P. King, Jr. Drummy King & White Attorneys At Law 3200 Park Center Drive, Tenth Floor Costa Mesa, CA 92626 Subject: #22 Beacon Bay- Transfer of Leasehold Dear Mr. King: The transfer of the leasehold interests to a Living Trust can be handled rather expeditiously. We require a processing fee of fifty dollars ($50) to draw up and record a new lease, and we also need a copy of the complete trust with an amendment similar to the example attached. This amendment insures that any transfer of the leasehold will not circumvent that provision of the lease calling for increased rent upon transfer. We will quickly process the transfer to the trust upon receipt of the processing fee and a copy of the amended trust. If you have any questions please feel free to contact me directly. KJD:mb Attachment Sincerely, Kenneth J. I Deputy City City Hall • 3300 Newport Boulevard 0 P.O. Box 1768 • Newport Beach, California 92659-1768 9 STEPHEN C. CRUMMY JOHN P. KING, JR. ALAN 1. WHITE CHARLES W. PARRET MICHAEL O. JOEROER JEFFREY M. RICHARD GREGORY E. ROBINSON KEVIN M. TRIPI LISA A. STEPANSKI MARKS FAULKNER MARK R. BECKINOTON DOUGLAS P. RUBINO LAWRENCE M. BUREK GEOFFREY S. PAYNE KENNETH W. CURTIS ALAN A. GREENBERG ROBERT M. DEFEO DRUMMY KING & WHITE A PROFESSIONAL CORPORATION ATTORNEYS AT LAW 3200 PARK CENTER DRIVE, TENTH FLOOR COSTA MESA, CALIFORNIA 92626 DIRECT ALL MAIL TO: P.O. BOX 5080 COSTA MESA, CALIFORNIA 92628 Mr. Kevin Murphy City Manager City of Newport Beach 3300 Newport Boulevard Newport Beach, CA 92663 October 19, 1992 Re: Assignment of Leasehold Property; 22 Beacon Bay, Newport Beach Dear Mr. Murphy: AREA CODE 714 TELEPHONE SSO-IBOO TELECOPIER (714) 850-4500 IN REPLY REFER TO 07335.002 O °23 FPcT CITY 199Rk, Clty OF&ENe 861Cp h' The above -described property is held in joint tenancy between the George T. Pfleger Trust and Linda P. Edwards (formerly Linda C. Jackson), as joint tenants. Mr. Pfleger has passed away, and we intend to effect two transfers: 1. A transfer from the present joint -tenancy sf-taa-tion to the Trust of the surviving joint tenant (the Linda P. Edwards Trust dated January 21, 1991). 2. Thereafter, the property will be sold to the Harriet E. Pfleger Trust dated October 12, 1989. Please advise of any lease assignments or other documentation which the City desires, if any, in connection with these transfers. ver truly yours, J N P. KING, JR. of RUMMY KING & WHITE JPK:km JPK\COR\29509.1 .,i..,.,uii:,ii?;iiidtiti,iio�>ii.•s>iiGi,d a:i„i;i:i• i;iiiiiiiliii;iliii.3t?E ;ii �i,"i'Witi?ii;i3tit;id8utiti;i8:%,,878riiJ"uL`?t3,aa833titluv:+:+i;i,. �✓ n - _ i CITY OF NEW PORT-; 1, MEMORANDUM: FrOM EXECUTIVE ASSISTANT TO..... ......................... RE: Beacon Bay Lot No. 22 ._ July-. 25......................9 19.--$9 Effective July 14, 1989, the new monthly rental will be $3,437.50, for #22 Beacon Bay. The new owner is: Linda C. Jackson 22 Beacon Bay Newport Beach, CA 92660 KJD:mb Reply wonted ❑ �� Reply not neceaury Q KENNETH J. DELI i ne.ao- i '.r, it�� I�i =1B ;;.3.� 3, is :,i''e: { , � ,�� :A• .+_ .�•: . .Y. ',t••c: City of Newport Beach Attn: Marion, Manager office 3300 Newport Blvd. Newport Beach, CA 6 Branch amlo-y - (% t o' )-- Telephone Escrow Officer Escrow F- Date^ We enclose the forms listed below for your review. If they meet with your approval, please sign and return to our offices as soon as possible. A self addressed envelope is enclosed for your convenience. Escrow Instructions Commission Instructions PLEASE SIGN AND RETURN ENCLOSED Amendment INSTRUCTIONS (retain additional enclosed copies for your files). Statement of Identity Loan Information Letter Deed Trust Deed (and Note) 1 PLEASE FILL IN COMPLETELY, SIGN AND J( RETURN. Fire Insurance \ Latest Tax Bill 1 Money estimated as needed from you $ CASHIER'S CHECK to be payable to Spring Mountain Escrow Corporation SIGN AND ACKNOWLEDGE BEFORE A NOTARY PUBLIC EXACTLY THE WAY NAME APPEARS ON DOCUMENTS AND RETURN. PLEASE SEND TO US. X— NEW LEASE X_ CHECK FOR AUG. LEASE PAYMENT ENCLOSED FOR YOUR FILE. OF $3437.50. NOTE: escrow closed on 7-14-89. If you have any questions or if we can be of service to you in any way, please call us. Sincerely, Spring Mountain EC 1171 (8/86) CITY OF NEWPORT BEACH MEMORANDUM: FrOM EXECUTIVE ASSISTANT To_j, ice SPRING MOUNTAIN ESCROW RE: Beacon Bay Lot #22 - Escrow No. 654-LK .........June....... ...........27 Please return one (1) dated lease at -close of escrow. Also record one Termination of Lease and one Memorandum of Lease. One copy of each is for Buyer. If you have any questions call Marion at 644-3002. Reply wanted 0 Reply not necessary 0 Byv.kar,_�.. ...... *761� KENNETH J. E!K;1*ff6*** . . . . . . . . . . 0 1 i CITY OF NEWPORT BEACH MEMORANDUM: FrOM KENNETH J. DELINO TO ...... LINDA__KARCHER_,_.Escrow-Officer May 12 1 19.__89 SPRING MOUNTAIN ESCROW RE: BEACON BAY LOT #22 - ESCROW NO. 654-LK Attached please find two (2) copies each of New Lease, Termination of Lease and Memorandum of Lease. Please obtain signatures and notarize and return. All rental payments are current and new lease amount is $3,437.50 per month. Thank you, Reply wanted p Reply not nemmary ❑ Mao - r Marion Attachments MOUNTAINOSPFJNG CITY OF NEWPORT BEACH 3300 NEWPORT BLVD. NEWPORT BEACH, CA 92659 ATTN: CITY ATTORNEY 0 Branch P.O. BOX 9769 NEWPORT BEACH, CA 92 5 Telephone 721-6485 Escrow Officer Julia Lawless ' Escrow No. 6,54-TR Date JjjNE 2222, 1989 We enclose the forms listed below for your review. If they meet with your approval, please sign and return to our offices as soon as possible. A self addressed envelope is enclosed for your convenience. Escrow Instructions Commission Instructions PLEASE SIGN AND RETURN ENCLOSED Amendment INSTRUCTIONS (retain additional enclosed copies for your files). Statement of Identity Loan Information Letter PLEASE FILL IN COMPLETELY, SIGN AND J( RETURN. Deed SIGN AND ACKNOWLEDGE BEFORE A Trust Deed (and Note) NOTARY PUBLIC EXACTLY THE WAY NAME MEMORANDUM OF LEASE APPEARS ON DOCUMENTS AND RETURN. TERMINATION OF LEASE MeAgurance Latest Tax Bill Money estimated as needed from you $ CASHIER'S CHECK to be payable to Spring Mountain Escrow Corporation PLEASE SEND TO US. I ENCLOSED FOR YOUR FILE. If you have any questions or if we can be of service to you in any way, please call us. Sincerely, Spring Mountain Escrow Corporation FA e is La les , Jr. Escrow Officer Enclosure -- *CITY OF NEWPORT BE*H O� @m NEWPORT BEACH. CALIFORNIA 92663 w IgFOP1 RECEIVED FROM FOR: DEPARTMENT BY 9 & RECEIPT No. 32845 Ko SPRING ! MOUNTAIN ESCROW �- OR AT I , N I CITY OF NEWPORT BEACH 3300 Newport Blvd. Newport Beach, CA 92663 Attn: Ken Delino & Marion Date: May 12, 1989 Escrow No: 654-LK Dear Marion: In connection with the above numbered escrow, we enclose herewith the following: (XX) Cert. copy of our escrow instructions (XX) $50.00 check per your request Marion, per our phone conversation this morning.... please forward me a copy of the lease for #22 Beacon Bay, Newport Beach, CA for our buyer's review per instructions. In addition, please forward us the status of Ground lease payment(s) and any outstanding balances that may due the City, or appropriate transfer fee(s). Please issue and forward the New lease from MELVILLE to JACKSON, Termination of Lease, Memorandum of Lease (to file) and any other documents you require to transfer title to new buyer. PLEASE NOTE IN THE ESCROW INSTRUCTIONS THAT THE SELLER CONSIST OF RONALD E. MELVILLE and LOUISE MELVILLE @BX. Should you have any questions regarding the enclosed, please contact the undersigned. Sincerely, SP NG V40 dPtCROW PRPORATION B Linda Ka cher, Escrow Officer C I'SPFING MOUNTAIN Escrow No. 654-LK Date May 10, 1989 Page Page 1 1. ESCROW INSTRUCTIONS TO: 2. 3•.SPRING MOUNTAIN ESCROW'CORPORATION 4. Corporate Branch 5. 2101 E. Coast Hwy., Box 9769 6. Newport Beach, CA 92658 7. Telephone: (714) 721-6491 8. Escrow Officer: Linda Karcher 9. Escrow No.: 654-LK 10. Title Order No.: 11. Title Co.: First American Title Ins. Co. 12. Date: May 10, 1989 3. 14. MEMO 15. Cash through escrow $ 1,650,000.00 16. TOTAL CONSIDERATION $ 1,650,000.00 17. 18. 19. I will hand you $1,650,000.00 in cash plus my share of closing costs 20' incurred , of which I have handed you $25,000.00* as my initial deposit 21. in escrow, making a total consideration of.$1,650,000.00. 22. I will also hand you any additional funds and instruments required from 23. me to enable you to comply with these instructions, which you are to use 24. on or before 07/20/89**, and record any documents called for in this 25. escrow when you can obtain assurance of title in the form of a Standard 26. CLTA Owner's policy of Title Insurance on said property with liability 27. limited to $1,650,000.00 on real property in the City of Newport Beach, 28. County of Orange, State of California, described as follows: 9. 30. THE LEASEHOLD INTEREST IN AND TO: Lot 22 as shown upon a record of 31. survey map filed -in book 9, pages 42 and 43 records of survey in the 32. 33. office of the county recorder of said county. �OpTjF�EDrO ap 34. Property Address (not verified): OF f G TRUFgND Ep�"� � 35. Y. RfCT 36. 22 Beacon Bay, Newport Beach, CA 92660 G �• 37. MOU rA 38. Showing title vested in:Soaq, 39. LINDA C. JACKSON, complete vesting to follow40 PPq 41. BUYER(S) TO CHECK ONE OF THE FOLLOWING: 42. 43. *BUYER HAS BEEN ADVISED TO SEEK LEGAL AND/OR TAX COUNSEL AS TO THEIR 44. VESTING FOR ANY SUCH TAX RAMIFICATIONS.* . 46. ( ) as joint tenants ................( ).as community property ( ) a single woman (never married)..( ) a single man (never married) 47. ( ) an unmarried woman (divorced)...( ) an unmarried man (divorced) 48. ( ) a widow .........................( ) a widower 49. ( ) each as to an undivided (equal) interest, i.e. tenants in common 50. ( ) none of the above, TITLE TO BE VESTED AS FOLLOWS: 51. 52. 53. Free of encumbrance EXCEPT: 55. (1) All general and special real and personal property taxes 56. for the fiscal year 1989-90 . Record owner agrees to pay 57. Supplemental Taxes for periods assessed to previous tax years. 58. 0. 6(2) A lien of supplemental taxes, if any, assessed pursuant to . the provisions of Chapter 498, 1983 Statutes of the State of 62California. .i (3) Assessments and Bonds, not delinquent, having'an unpaid balance 63. of $ NONE . 64. (4) Easements, Rights of Way, Covenants, Conditions, Restrictions 6 65. . & Reservations of Record, or in deed to record. 67. 68. INSTRUCTIONS: 70.PLEASE INITIAL: E SPRING j MOUNTAIN ESCROW C 0BPOA AT 10N LINDA M. KARCHER i Escrow Officer 2101 E. Coast Highway, Third Fl. P.O. Box 9769 Newport Beach, CA 92658 (714) 721-6418 I I 6 Escrow No. 654-LK Date May 10, 1989 Page Page 2 1. 2. 3. 4. PRORATIONS to be made on the basis of a 30 day month on items marked 5 "X" below as of close of escrow 6 (x) TAXES, 1st 1/2 1989-90 on the basis of the latest tax 7 statement, PLUS ANY SUPPLEMENTAL TAXES, IF AVAILABLE, e BUT WITHOUT REGARD TO ANY FUTURE SUPPLEMENTAL TAXES INCURRED 9 BY REASON OF REASSESSMENT 10. 11. () FIRE INSURANCE on basis of premium shown on policies handed 12. you or that Beneficiaries inform you they hold. 13. () INTEREST on encumbrances(s) of record. 14. (X) LEASEHOLD RENTS basis of rental statement handed you by seller is. and approved by buyer. Make no adjustment,against buyer for 16, uncollected rents prior to close of escrow. 17 () PREMIUM on FHA, MMI, or any other stated 1�TTIteOsT(10'RUEAND CORRECT 18. insurance COPY 0 E SIGNEq ORIGINAL. 19. (x) HOMEOWNERS Association Dues, if any. 20. 21. SBY k�lTA N E CepC�p�� 22. BUYER IS AWARE THAT SUBJECT PROPERTY IS LOCATED ON CITY OF NEWPO%EACH 23. LEASED LAND. The City of Newport Beach to provide a copy of lease for 24. buyer. Escrow is contingent upon the Buyer's satisfactory examination of 25. all conditions contained in said lease, and will approve or disapprove 26. of its contents, in writing to escrow, within 10 days of buyer's receipt 27. of same. 28 Escrow holder is authorized and instructed to obtain a statement from 29. City of Newport Beach as to the status of current Leasehold payment(s), 30. charge the Seller for any past due payments and prorate the current 31. months payment at close of escrow. Escrow holder is instructed to 32. charge seller with $50.00 lease fee for the obtaining of necessary 33. documents from City. The city of Newport Beach shall provide a 34. Termination of Leasehold and a Memorandum of Lease for recordation at 35. close of escrow, along with a new lease for the buyer.Buyer is aware 36: that the aforementioned documents are in lieu of a Grant Deed, as this 37. is leased land. 38. Escrow holder is authorized and instructed to provide the city of 39. Newport Beach any documents and/or funds which may be required to comply 40. with these instructions. 41. Order domand/payoff statement on all existing liens and loans, if 42. applicable, charging the seller's account for same at the close of 43. escrow. 44. 45. Obtain a statement from the homeowners association as to the current 46. status of the dues, charge seller with any due, but unpaid assessments, 47. charge the buyer with transfer fee and prorate the current month to 48. close of escrow. In the event seller is unable to provide association 49. documents as described in the sale contract, escrow holder will order So. the documents from the association and charge the seller for same at the 51..close of escrow. In the event a second set of documents is required by S2. the buyer's new lender, escrow holder is authorized and instructed to 53. charge the buyer for same at the close of escrow. BUYER IS AWARE THAT 54. ASSOCIATION DUES ARE APPROXIMATELY $600.00 PER YEAR. 55. 56. Notify all parties and their agents if the deposit check is not received 57. or is returned uncollected by the bank. 58. 59. Provide copies to bu-yer, seller and their agents of any notices received 60. from the other party or their agents. 62. Each party acknowledges the close of escrow is conditioned upon check 63. clearances. Funds to close must be in the form of a cashiers check 64. drawn on a bank with clearing house in the State of California OR be 65. wire transferred to Spring Mountain Escrow's Trust Account. All final 66. funds in excess of $100,000.00 must be wire transferred. 67. 68. Release sufficient funds from monies on deposit to pay for credit 69. report, appraisal, city reports, lender or association statements which 70. PLEASE INITIAL: Escrow No. 654-LK Date May 10, 1989 Page page 3 1. 2.may be required to be paid in advance. These monies are not refundable 3.regardless of the consummation of this escrow. 4. 5. Seller shall provide buyer a copy of the City Residential Building 6. Report for Newport Beach, and make any repairs and/or adjustments 7.specified therein. At the close of escrow, escrow holder is authorized 8.and instructed to charge the seller and reimburse any party depositing a 9.paid receipt for the City Inspection Report. 10. 11.Seller is to furnish, at his expense, a current licensed structural pest 12.control report showing the accessible portions of subject property in 13.this escrow (and garage) to be free of visible evidence of active . 14.infestation by wood destroying insects, fungi and/or dry rot. Seller 15.authorizes payment for making the inspection report and repairs needed 16, to comply herewith. 17. 18.Buyer is aware the property will be reassessed by the Tax Assessor as of 19.the close of escrow and a supplemental tax bill will be received after 20.the close of escrow. As escrow holder, you are her y relieved of any 21.and all responsibility and/or liability in @roinjg_ with any future or 22. revised tax bills. COPY T SETRUE 23. 1GIVED pAND CORR 24. Buyer -will furnish this escrow with' a "Pre • ' n ry n e P 91)\QtinR9bip 25.Report" which shall be presented to the C t time of 26.recordation of the Deed for subject property. SN 1 ecline to 27.complete said report, or should the County Recorder rejec 0 "sport, 28.escrow holder is authorized and instructed to charge the buyer lie 29.additional $20.00 fee assessed by the County. Further, in such event, a 30.Standard Change in Ownership Statement will be mailed to the buyer by 31.the County Assessor with the recorded Deed for completion. Failure to 32.complete and return said form within the 45 days provided will result in 33.a penalty being assessed by the County. Escrow holder is relieved of 34.any responsibility and/or liability in connection with the completion of 35.the "Preliminary Change of Ownership Report." 36. 37.This escrow is contingent upon the buyer approving the preliminary title 38.report and CC&R's if any, within FIVE days of receipt of same from 39.escrow holder. In the event written disapproval is not received within 40.the time allowed, said items shall be deemed approved. 41. 42•Buyer to receive a one year home warranty plan. (of seller's choice,) on 43.subject property. At the close of escrow, charge the SELLER and pay the 44.bill as presented to escrow, however not exceeding $500.00. 45. 46.Escrow holder is instructed to comply with the 1986 Tax Revision and 47.cause to be drawn -and processed a W-9 form. Seller agrees to comply 48.with said requirement. 49. SO -Seller agrees to comply with state and local ordinances regarding the 51•installation of smoke detectors. 52. 53.*Buyer shall deposit an additional sum of $50,000.00 to escrow within 30 54•days from opening of escrow (by June 9,1989), making total deposit in 55•escrow at that time of $75,000.00. 56.From funds deposited in escrow by the Buyer, escrow holder is authorized 57•and instructed to release $50,000.00 to the Seller unconditionally, 58•immediately upon deposit, and without further instruction from the -99'parties. To allow Escrow Holder to comply with these instructions, "60.Buyer agrees to deposit funds in the form of a Cashier's Check written 61.bn a California Bank. 62. 63.Parties are aware and agree that early released funds are made part of 64.the purchase price, and will be applied accordingly at closing. 65.CR The undersigned Buyer and Seller hereby acknowledge that they are 66.aware that Spring mountain Escrow Corporation, its officers and 67•employees, make no warranty or representation of any kind or nature, 68.either expressed or implied, as to the ownership or condition of title 69•to the property described in this escrow, nor as to the condition of 70.PLEASE INITIAL: SPRING MOUNTAINEscrow No. 654-LK Date May 10, 1989 Page Page 4 2, encumbrances or liens, if any, thereon, nor as to the condition or 3. ultimate outcome of this escrow, and that at the time of release of 4 .funds as called for above, the conditions of this escrow will not have 5. been complied with nor will any documents be filed for record in 6. connection therewith. We, the undersigned, hereby hold Spring Mountain 7. Escrow Corporation harmless from any loss or damage which may be 8 sustained by reason of the above disbursement instruction, and for the S. failure of any of the conditions of this escrow, and for the recovery of 10 said money so released. 1 12. **For clarification purposes, the close of escrow to be on or before 13. July 20, 1989, however not sooner than June 26, 1989. 15. All parties acknowledge that Merrill Lynch Realty is representing only 16. the Buyer in this transaction, and the Seller is self -represented. g. The following items are matters of record only, of which escrow holder 19. has no duty or concern to: 20. 1) Possession and occupancy of subject property is to be granted to the 21. buyer at the close*of escrow plus 3 days thereafter. 22 2) EXCLUDED FROM PURCHASE PRICE is the patio furniture. 24. ALL PARTIES ACKNOWLEDGE THE ORIGINAL SALES CONTRACT DATED MAY 1st, 1989 25 AND COUNTERS CONTAINS PROVISIONS NOT STATED HEREIN AS THEY DO NOT 26. REQUIRE ACTION BY ESCROW HOLDER. BUYER AND SELLER AGREE TO BE BOUND BY 27. ANY ITEMS CONTAINED IN THE SALES CONTRACT AND COUNTERS, WHICH ARE NOT 28 SPECIFICALLY AMENDED BY THESE INSTRUCTIONS. 30. In the event escrow holder is not notified in writing of disapproval of 31. inspections, reports, and/or contingencies contained in the sale 32. contract, contingencies are waived and conditions are approved. 33. 34. BUYER'S APPROVAL 35. I agree to pay buyer's usual charges on demand, including, but not 36. limited to: -sub-escrow fee if incurred on my behalf only, recording 37. Memorandum of Lease, buyer's escrow fee, -drawing any trust deed and note 38. executed by me, recording and drawing any other documents necessary on 39. my part, and lender's fees incurred as specified in said lender's 40. documents, if any. 42. BY SIGNATURE BELOW, THE GENERAL PROVISIONS ON THE LAST PAGE HEREOF ARE 43. APPROVED AND INCORPORATED WITHIN THE TERMS OF'THIS ESCROW AS THOUGH THE 44. SAME APPEARED OVER MY SIGNATURE. BE TRUE AND CORRECT 45. CERTIFIED 46. COPY QF SIGNIL"D ORIGII4AL. 47. 48. LINDA C. JACKSON B 49. oU A14 �SGBO QUJR 51. SELLER'S APPROVAL 52. THE FOREGOING TERMS, CONDITIONS AND/OR INSTRUCTIONS TOGETHER WITH THE 53. GENERAL PROVISIONS ON THE LAST PAGE HEREOF, ARE CONCURRED IN, APPROVED 54. AND ACCEPTED BY THE UNDERSIGNED SELLER AS EVIDENCED BY SIGNATURE BELOW. 55. 56. I will hand you all instruments and money necessary for me to comply 57. with the above including a Termination of my leasehold interest to the 58, property described, which you are authorized to record or deliver when 59. you can comply with these instructions. 60. You -are authorized and instructed to pay all encumbrances on said 61. property, except those which are to remain a lien at close of escrow as 62. previously set forth, from the proceeds of this escrow. 63. I agree to pay seller's usual charges including,.but not limited to: 64. sub -escrow fee, policy of title insurance, documentary transfer tax if 65. any, seller's escrow fee, drawing any other document executed by me or 66. necessary on my part, offset, beneficiary and demand statement and 67. express mail and messenger fees, if applicable. 68. 69. 70. RONALD E. MELVILLE LOUISE MELVILLE cr.In' r.oi.a _ Spring Mountain Escrow Orporation Escrow No. 654-LK Date May 10, 1989 Page 5 Y GENERAL PROVISIONS 1. IT IS MUTUALLY UNDERSTOOD AND AGREED BY ALL PARTIES TO THIS ESCROW, JOINTLY AND SEVERALLY, THAT: 2. The close of escrow shall be the day documents deposited in this escrow are recorded. 3. If the conditions of this escrow have not been complied with at the time provided for in these instructions, you are 4. nevertheless to complete this escrow as soon as the conditions (except as to time) have been complied with, unless a written S. demand for the return of money and/or instruments by a party to this escrow is received by you prior to the recording of any 6. Instrument provided for in these instructions. 7. No notice, demand, or change of instructions shall be of any effect unless given to you in writing and approved in writing by 8. all parties affected by the same. 9. If, before or after recording documents, you receive or become aware o1 any conflicting demands or claims (hereafter, 10, "conflict") with respect to this escrow, the rights or obligations of any of the parties or any money or property deposited or 11. affected, you shall have the right to discontinue further performance on yourpart until the conflict is resolved to your satisfaction. 12. In addition, you shall have the right to commence or defend any action orproceeding you deem necessary forthe determination 13. of the conflict. A conflict shall be deemed to be your receipt of unilateral Instructions or mutual Instructions from some, but not 14. all of the parties to this escrow. 15. Should any controversy arise between the parties to this escrow or with any third person, you shall not be liable to take any 16. action of any kind, but may withhold all moneys, securities, documents or other things deposited into escrow until such 17. controversy has been determined by agreement of the parties or by legal process. 18. In the event any action is commenced to determine a conflict or otherwise to enforce or declare the provisions of these 19. instructions or to rescind them including, but not limited to: a suit in inlerpleader, whether or not the action is prosecuted to final 20: judgment, voluntarily dismissed or settled, and irrespective of whether you are the prevailing party in any such action; or if it 21. becomes necessary or desirable for you to obtain legal advice with respect to a conflict or on account of any matter or thing 22. arising out of or in any way related to these Instructions, whether or not suit is actually commenced, the parties to this escrow 23. jointly and severally agree to pay all of your costs, damages, judgments and expenses, including attorneys' tees, incurred by you 24, in connection with the same. 25. It is understood that the fees agreed to be paid for your services are for ordinary and usual services only, and should there be 26. any extraordinary or unusual services rendered by you, the undersigned agree to pay reasonable compensation to you for such 27. extraordinary or unusual services, together with any costs and expenses which may be incurred by you in connection with the 28. same; and you are hereby given a lien upon all documents, moneys and securities deposited in this escrow until you have been so 29. compensated or reimbursed. It is understood that in the event this escrow is cancelled, you will receive compensation for such 30. services as you have rendered in connection with this escrow. 31. Escrow holder shall not be held liable for sufficiency or correctness as to form, manner or execution or validity of any 32. document deposited into escrow, nor as to the identity, authority, or rights of any person executing them, nor for failure of any 33. party to this escrow to comply with any of the provisions of any agreement, contract or other instrument filed or referred to in 34. these instructions. The duties of escrow holder shall be limited to the safekeeping of money, instruments or other documents 35. received by escrow holder and for the disposition of them in accordance with the written instructions accepted by escrow holder, 36. The knowledge of escrow holder of matters affecting th;y property, provided such facts do not prevent compliance with these 37. Instructions, does not create any liability or duty in addition to the responsibility of escrow holder under these instructions. 38. Escrow holder shall not be obligated to make any physical examination of any real or personal property described in any 39. document deposited into this escrow. The parties agree escrow holder is not making any representationswhatsoever regarding 40. said property. 41. Escrow holder shall be under no obligation or liability for failure to inform the parties to this escrow regarding any sale, loan, 42. exchange, or other transaction of facts within the knowledge of escrow holder concerning the herein described property, provided 43. it does not prevent escrow holder's compliance with these instructions. 44. Escrow holder shall not be concerned with giving any disclosures required by Federal or State law, including, b: t not limited 45. to, any disclosures required under Regulation Z pursuant to the Federal Consumer Credit Protection Act, the effect c! any zoning 46. laws, ordinances or regulations affecting any other property described in this escrow. The undersigned jointly and severally 47. agree to Indemnify and hold escrow holder harmless by reason of any misrepresentation or omission by either party or their 48. respective agents or the failure of the parties to this escrow to comply with the rules and/or regulations of any governmental 49. agency, state, federal, county, municipal or otherwise. Parties to this escrow have satisfied themselves outside escrow that this 50. transaction is not in violation of the Subdivision Map Act orany other law relating to land division, and escrow holder is relieved of 51. all responsibility and/or liability in connection with the same and is not to be concerned with the enforcement of said laws. 52. You are authorized and instructed to utilize the services of a sub -escrow agent, within the scope of Section 1738.4,.5 of the 53. California Administrative Code, as a depository for funds and/or documents prior to close of escrow, if necessary. 54. Escrow is authorized and instructed to furnish information from this escrow to lenders and/or brokers as may be requested 55. Dy them, including, but not limited to copies of all instructions and closing statements in this escrow. Escrow is authorized to 56. accept funds deposited to our account by our broker or agent without further authorization. 57, All deposits made by the parties to this escrow shall be deposited by escrow holder in an account designated as "Escrow 58. Trust Account" with any local bank, without any liability for interest. All disbursements shall be made by check of escrow holder 59. drawn on said account. Escrow holder shall not be obligated to identify or to guarantee the signature of any payee on said 60. checks. All documents and checks in favor of the parties shall be mailed, unregistered, to the addresses of the respective parties 61. set forth in these instructions. 62. These instructions may be executed in counterparts, each shall be deemed an original regardless of the date executed and 63. delivered, and said counterparts shall constitute one and the same instrument. 64. The signature of the undersigned hereon and on any document(s) and instrument(s) pertaining to this escrow indicates their 65. unconditional acceptance and approval of the same, and the undersigned hereby acknowledge receipt of a copy of these 66. instructions. 6CERTIFIED 0 BE TRUE AND CORRECT 58. COPY H SIGNED ORIGINAL. 69, B 70. 71 SPRING Rot ' NT 7N ESCROW rORP. 72. Signature(s) Signatures) 73. . RONALD E. MELVILLE LINDA C. JACKSON 74. , 75. LOUISE MELVILLE 76. 77. 78. EL 1104C (41871 AS SSGNMENT AND 2NSTRUCTSON TO ESCROW FOR PAYMENT OF IZMAI• ESTATE :BROKER'S COMMSSSMON COMMISSION AUTHORIZATION Date: May 10, 1989 Corporate Branch Escrow No.: 2101 E. Coast Hwy., Box 9769 654-LK Newport Beach CA 92658 Gentlemen: WE HM:REBY 2R1;?EV0CABLY ASSMON TO: MERRILL LYNCH REAL ESTATE Lic. # 00957341 the sum of $ 49, 500. 00 2101 E. Coast Hwy., 200 Newport Beach, Ca 92658 Lie. # the sum of $ TOTAL$ 49,500.00 PAYABLE FROM PROCEEDS DUE US AT =TZ CLOSE OW FISCRC-)W - We hereby irrevocably direct you to pay assignee the funds assigned `'immediately upon'the close of escrow. No change or modification in this instruction shall be of any effect unless signed by both the undersigned as sellers and by the undersigned brokers. In the event, however, any controversy or dispute arises regarding ,said commission, escrow holder is instructed to proceed with the closing of this escrow if all other conditions of the transaction have been met. No liability is assumed by escrow holder for the payment of' the assigned funds in the event this transaction is not consumated or this assignment is revoked or modified with the broker's approval. RONALD E. MELVILLE _ LOUISE MELVILLE TRUE AND CORRECT BROKER ACCEPTS AND AGREES TO THE Property Address: Escfov 22 Beacon Bay Newport Beach CA 92660 �AL1­1 VA June 8, 1987 Mr. Ken Delino CITY OF NEWPORT BEACH 3300 Newport Beach Blvd. Newport Beach, Cal. 92663-3884 Regarding: Lot 0022 Leasehold Estate Dear Mr. Delino, As per our conversation, we -enclose check #580 in the amount of $100.00 payable to City of Newport Beach as the transfer fee in connection with the transaction as described in the attached escrow instructions. Please prepare the necessary Leasehold documents for signa— tures and forward to our office at your earliest convenience. Sincerely, FREEDOM ESCROW rus :er 1001 Dove Street • Suile 270 • Newport Beach, California 92660 • Telephone (714) 833-1252 jut vOVOU d P 0t���t Go,,, -Se coo a�a to t 4 - PAY TOTHE ORDER RONALD E. MELVILLE - _- 22 BEACON BAY 675.335E - r ,.NEWPORT BEACH, CA 92660 �I r/ p� 18.4/1220 26 lyO 7 $ V\ti _��DOLLARS SECURITY PACIFIC NATIONAL BANK New ort C rt teOffr Drive NowportpBee C CA 92660FOR r 119000 8011' : 12 6EO004 31: 16go" 11,9 19 211' q' t EEDOM ESCROW. 1001 Dove Street Newport Beach, (714) � 833-1252 Suite 270 4� JcNOF vA California COG` R"�O 9?t6S00raoc�o�. ESCROW INSTRUCTIONS Escrow No. 10027 Newport Beach , Calif., Buyer has handed Seller, outside escrow the sum of 3rd loan prior to the close of escrow, plus pay costs in connection with t is transaction, and will dahvar to You any Inctroments which this escrnw fecluir n %hall he executed by me, all o/ wMch You are instructed ro use Provided on or before June 1. 1987 you hold a Policy Of title insurance with the usual title eompanV'a exceptions, With a flabllitY of S N / A C vermg A Leasehold estate created by that certain lease r�atei Paid outside of Escrow I J U , tJ V V { t1 v Cash through ESCrdw Encumbrance of record Encumbrances of record New EnCPmbrafiCes iincilA Redict. Total Coml ration uanu ry , n a o h e r.p t of o , except any oil or mineral rerervahon of record title vested in: RONALD E. MELVILLE AND LOUISE COOK MELVILLE, HUSBAND AND WIFE IACB Tn AN TTNDTVTDFD 307interest. as tenants in common. F fall from enCuthbranees exCept: (1 ) N / A General and Spacial Take lot the final year 19— 19.. including PRtonal property taxes, If any, asmred against former owner 131 Covenants, conditions, restriction%, reservations, lights, fight%Of way. and easements of record, if env (3) 1st Trust Deed of record with IMPERIAL SAVINGS, showing an approximate bal- ance of $418,257.00. (4) 2nd Trust Deed of record with FAR EAST -NATIONAL BANK, showing an approximate balance of $135,659.00 (5) 3rd Trust Deed of record with CITY NATIONAL BANK, showing an approximate balance of $100,677.60. Buyer herein agrees to pay to CIT NATIONAL BANK the sum of $60,000.00 as a principal reduction to loan balance and provide adequate evidence to Seller and copy to escrow holder for their files. CONDITIONS: 1. This transaction is for the purpose of the Buyer, LOUISE COOK MELVILLE to pay the Seller, RONALD E. MELVILLE the cash sum of $50,000.00 (OUTSIDE ESCROW) and a principal reduction of 160,000.00 payable to IMPERIAL .SAVINGS. In consideration of the conditions herein stated, Buyer shall be added to title of subject property a stated above. 2. Escrow Holder is instructed to request Lease Holder; CITY OF NEWPORT BEACH, to furnish Leasehold documents for the purpose of .title veting change as in- dicated above. Escrow Holder is instructed to record the new Leasehold documents after proper signatures and approval has been obtained. 3. Parties herein agree that there will be no proration of taxes, insurance or association dues or ground lease payments through this escrow. 4. Parties herein agree that there will be no title insurance ordered through this escrow. - —' EASH OF THE ABOVE SINGED STATES HE HIAS"READ THE FOREGOING INSTRUCTIONS AND UNDERSTANDS AND AGREES TO THEM. EM Ronald E. Melville Address: 22 Beacon Bay, Newport.Beach, Telephone: 714) 476-5115 BY: Louise Cook Melvill California ;; PACE 2 "ADDITIONAL ESCROW CONDITIONS AND INSTRUCTIONS" 1. All funds received in this escrow shall be deposited with a State or Federal bank with other escrow funds and all disbursements shall be made -by check of this Escrow Co. Make all adjustments and proratings on the basis of a 30 day month. "Close of Escrow" is the day instruments are recorded. All documents and funds due the respective parties herein are to be mailed to the addresses act out below their respective signatures, unless otherwise instructed. Our signatures on any documents and instructions pertaining to this escrow indicated our unconditional approval of same, 2. You shall not be responsible, pr liable in any manner whatsoever for the sufficiency or correctness as to form, manner of execution or validity of spy documents deposited in escrow, nor as to the identity, authority or right, of any pr".00 executing the same, either as to the documents of record or those handled in this escrow. Your duties hereunder shall be limited to the safekeeping of such money and documents received by you as escrow holder, and for the disposition of the same in accordance with the written instructions accepted by you in this escrow. You s4ali not he required to take any action in connection with the collection, maturity or apparent outlaw of spy obligations deposited In this escrow unless otherwise instructed. You shall not be liable for any of your acts or omissions done in good -faith nor for any claims, demalido, losses -or damages made, claimed -or buffered by any party to this escrow, excepting such as may arise through or be caused by your willful neglect or gross misconduct. 3. Seller guarantees and you shall be fully protected in assuming that, as to any insurance policies handed vou, each policy is in force, has not been hypothecated and that all necessary premiums therefor have been paid. You will. as my agent, assign any fire insurance handed you for use Lu this escrow. 4. Deliver assurances of title, and insurance policies, if any, to holder of senior encumbrance or his order, or if there be no encumbrances, then to the buyer or his order. S. In the event that. the conditions of this escrow have not been complied with at the expiration of time provided for herein, you are instructed, nevertheless, to complete the some at any time thereafter as soon as the conditions (except as to time) have been complied with unless any of us shall have made wrrtten demand upon you for the return of money or documents deposited by him. Party electing to cancel this escrow hereby promises and agrees to pov your cancellation expenses. After the c::piration of such time this escrow may be cancelled by any one party thereto only by depositing into escrow a written demand on the other party or'parties to perform hereunder within five days from such deposit and if such other party or parties do not perform with said five days, then, in addition, by depositing a written cancellation in escrow after said five days. 6. All noticus, demands and instructions must be in writing. In the event conflicting demand or notices are made or served upon you or any controversy arises between the parties hereto or with third person growing out of or re- lating to this escrow, you shall have the absolute right to witbold and stop all further proceedings in, and per- formante of, this escrow, until you tuceive written notification satisfactory to you of the settlement of the con- troversy by agreement of the parties thereto or by final judgment of a court of competent jurisdiction. All of the parties to this escrow hereby jointly and severally promise and agree to pay promptly on demand, as veil as to idemnLfy you and to hold you harmless from and against all litigation and interpleader costs, damages, judgments, attorney's fees, expenses, obligations and liabilities of every kind which, in good faith, you may incur or suffer in connection with or arising out of this escrow, whether said litigation, interpleader, obligations, liabilit Les or expenses arise during the performance of this escrow, or subsequent thereto, directly or indirectly. 7. These instructions may be exuected in counterparts, each of vhich-shall fe deem"ed s orisinal'regardles3 of the date of its execution and delivery. All such counterparts together shall constitute one and the same document. You are hereby given a lien upon all the right,, title and interest of each of the parties hereto in all escrowed documents, funds and other property, and all monies 'or property for any and all expenses, attorney's fees, losses and other liabilities caused you in this escrow. 8. You are hereby authorized to deposit any funds or documents handed you under these escrow instructions, or cause the same to he deposited, with any duly authorized sub -escrow agent, subject to your order at or prior to close of vbcrow in the event such deposit shall be necessary, or convenient for the consummation of this escrow. y. The parties to these escrow instructions authorize you to destroy these instructions and all other instructtons and roc-,,db in this escrow at any time after five (5) years from date of these escrow instructions. 10. You may deduct from my net proceeds any amount I may owe you in any other matter. 11. In the .cunt of failure to pay fees or expenses due you hereunder, or demand, I agree to pay a resonable fee - for any attorney's services which may be required to collect such fees or expenses. 12. H ,eIlvr unLlaterally assigns or orders the ptoceeds of this escrow to be paid to other than the original parties to this escrow, such assignment or order #hail be subordinate to the expenses of thin escrow, liens of record on the subject property, and payments directed to be made by buyer and seller together. If the results of such assignment or order would be to leave the escrow without sufficient funds to close, then you are directed to close nevertheless and to pay such assignment or orders only out of the net proceeds due seller except for such assignment or orders, and to pay them in the order in which such assignments or orders are received by you. OC�t. OV A LEGAL DESCRIPTION f v ••"" LOT 22, in the City di Newport Beach,. County ,of Orange, State of California, as per map filed in Book,9, Pages 42 and 43 of Record of Surveys, in the office•of'the County Recorder of ,said County, together with certain'portions',of adjoining Tots °I".and' °Ht? as shown upon said Map and is described more fully in the Sublease, recorded ,tune, 11; 194,0 i� Bo'o.k TQ-52� tPa;gam -101,-,Off.icial Recordz, as ainen,d.ed by instrument recorded December 29, 1950 in Book 2122, Page 279, Official Records. END. DATE l Tim XORy, ° (/ WHILE YOU WERE OUT M OF " "u �(iPHONE No. V O l EXT.- TELEPHONED PLEASE CALL RETURNED YOUR CALL WILL CALL AGAIN CAME IN TO SEE YOU URGENT r�- 2z t BY •e FQMOM EOSCQOW May 20, 1987 MAY 2 61 Utjj eayse�e G:i kuwgtm 016x My of *WMI &r• City of Newport Beach 3300 Newport Blvd., Newport Beach, Cal. 92663-3884 Regarding: Lot 0022 Leasehold Estate Attention: FINANCE DIRECTOR Gentlemen: Please be advised that we have an open escrow to purchase a 50% interest in the above referenced property. Please forward your Leasehold Assignment forms and necessary conditions and requirements of your office in order to con— duct this transaction. The present owner is: Ronald E. Melville. Our open escrow # 10027 Please forward your documents as soon as possible to the undersigned. Sincerely, FREEDOM ESC ROW 1001 Dove Street • Suile 270 • NewporL Beach, California 92660 • Telephone (714) 833-1252 i CITY NEWPORT BEACH RECEIPT aEW PpRA R NEWPORT BEACH, CALIFORNIA 92663 No. 08086 a t4a�LIFOPH�P ✓Vv! �+C� � ///VJ' � 9n� RECEIVED FROM ��, o rE ��� �� •` �� �l�` L FOR: ACCOUNT NO. AMOUNT o 5 DEPARTMENT AV fj i4 b FQWOM EOSCQOW May 20, 1987 MAY 2 G 7987 rc+ewers mc;o City of Newport Beach 3300 Newport Blvd., Newport Beach, Cal. 92663-3884 Regarding: Lot 0022 Leasehold Estate Attention: FINANCE DIRECTOR Gentlemen: Please be advised that we have an open escrow to purchase a 50% interest in the above referenced property. Please forward your Leasehold Assignment forms and 'necessary conditions and requirements of your office in order to con— duct this transaction. The present owner is: Ronald E. Melville. Our open escrow # 10027 Please forward your documents as soon as possible to the undersigned. Sincerely, FREEDOM ESC ROW Joanie Watfous Escrow Officer a I 1001 Dove Slreel • c5udc 270 • Newport Beach, California 92660 • Telephone (714) 833-1252 CITY OF NEWPORT BEACH OFFICE OF THE CITY MANAGER (714) 644-3002 March 18, 1985 Mr. Ronald E. Melville 22 Beacon Bay Newport Beach, CA 92660 SUBJECT: California Coastal Commission Deed Restriction Dear Mr. Melville: I am returning to you the correspondence and deed restriction received from the California Coastal Commission . regarding your leasehold at 22 Beacon Bay. It is not the policy of the City of Newport Beach to execute such deed restrictions on city -owned property. While the current zoning on the property is R-2 which allows no more than two units on the subject lot, the City does not wish to foreclose its option in future years to change that designation. While the.City cannot accept such a restriction on the property, a similar restriction on your leasehold would be acceptable. Please use this letter in any further proceedings with the Coastal Commission on this matter. Sincerely, 1 '4 -J, KENNETH J� DELI NO Executive Assistant KJD:gIo cc: 22 Beacon Bay File City Hall 0 3300 Newport Boulevard, Newport Beach, California 92663 State of California, George Deukmejian, California Coastal Commission 631 Howard Street, 4th Floor San Francisco, California 94105 (415) 543-8555 �ld E. Melville 22 Beacon Bay Newport Beach, CA Dear Mr. Melville: MAg11}1985i ,'„ 11., // tf9'4X"ooA Be�S \ . December 31, 1984 Enclosed you will find the deed restriction. It has been completed, except for the required signatures. The City of Newport Beach,�as owner, and you, as lessee must sign it on page 4. The signatures must be notarized. — I i After signing, please obtain a conformed copy of the deed,restriction to send to US. After receipt of the conformed copy, I will notify the Lon_g.Beach -� Office the permit condition has been satisfied. The permit can than be issued. V ry tru lours, ' David In 9erso RECEIVED OCT 2 9 1904 / �• 5-�Y 5i5 N y CALIFORNIA COASTAL COMMISSION 631 Howard Street, San Francisco 94105—(415) 543-8555 TO: PERMIT APPLICANTS OR AGENTS /,Va4r,*40p S Xta,hneek FROM: LEGAL STAFF, CALIFORNIA COASTAL COMMISSION/.&v&raA $ehrudf RE: INSTRUCTIONS FOR THE COMPLETION OF ENCLOSED DEED RESTRICTION Enclosed you will find a Deed Restriction to be completed for compliance of one of the special conditions of the approved permit. The document should be completed by the applicants, as shown on the attached instruction sheet. Once the Deed Restriction has been executed, please send it to this office to the attention of Deborah Benrabi. The document will be reviewed for correctness and returned to the applicant, with instructions, for recording. Revised 8/82 - w I A 1 2 3 4 5 C7 7 8 9 10 11 12i 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 RECORDING REQUESTED BY AND RETURN TO: STATE OF CALIFORNIA CALIFORNIA COASTAL COMMISSION 631 HOWARD STREET, FOURTH FLOOR SAN FRANCISCO, CALIFORNIA 94105 DEED RESTRICTION I. WHEREAS, City of Newport Beach, Municipal Corporation of the State of California and Ronald Melville, Lessee, hereinafter referred to as Owners" 4uthe record ownerkof the following real property: It Lot 22 as shown upon a Record of Survey Man recorded in book 9. pages 42 and 43 Record of Surveys, on file in the office of the county recorder. Orange County, California,toeether with certain Imrions of adjoining lots to "I" and "H" as shown upon said Map and as described more fully in said lease hereinafter referred to as the subject property; and II. WHEREAS, the California Coastal Commission is acting on behalf of the People of the State of California; and III. WHEREAS, the subject property is located within the coastal zone as defined in SEction 30103 of the California Public Resources Code (hereinafter referred to as the California Coastal Act); and IV. WHEREAS, pursuant to the California Coastal Act of 1976, the Owner applied to the California Coastal Commission for a coastal development permit for the development on the subject property described above; and ,/ V. .WHEREAS, coastal development permit No. S"F'd/-.iS as granted on OGr l tl `tl L by the California Coastal Commission; and VI. WHEREAS, coastal development permit No. subject to the terms and conditions including but not limited to -the following condition: SEE PAGE 2 COURTPAPER *TAT& .....p STD. 113 ,REV. 4.12) 08, -2 1 11Prior to issuance of Coastal Permit, the applicant shall submit a deed 2 triction limiting the number of dweeling units on the property to two." 3 4 5 6 7 10- 11 13 14 15 16 17 16 VII. WHEREAS, the Commission found that but for the imposition of 19 the above condition the proposed development could not be found consistent 20 with the provisions of the California Coastal Act of 1976 and that a permit 21 could therefore not have been granted; and •" 22 VIII. WHEREAS, it is intended that this Deed Restriction is irrevocable 23 and shall constitute enforceable restrictions; and 24 IX. WHEREAS, Owner has elected to comply with the condition 1 25 imposed by Permit No. 5-84-515 so as to enable Owner to undertake the 26 development authorized by the permit; { 27 COURTPAPER GTATL or MUFOAMIA I SM. 113 (ACV. 8.721 GNP i -3- 21 22 23 24 25 cover PAPER Mrs 1/ GLIMMMIA 0.711 MI V . 2 3 4 5 6 7 8 9 10 11 12 13 14 -15, 16 17 18 19 Said deed restriction shall remain in full force and effect during the period that said permit, or any modification or amendment thereof, remains effective,'and during the period that the development authorized by said permit or any modification of said development, remains in existence in or upon any part of, and thereby confers benefit upon, the subject property described herein, and to that extent, said deed restriction is hereby deemed and agreed by Owner to be a covenant running with the land, and shall bind Owner and all his/her assigns or successors in interest. �I NOW, THEREFORE, in consideration of the granting of permit No. 5-84-515 to the Owner by the California Coastal Commission, the Owner hereby irrevocably covenants with the California Coastal Commission that there be and hereby is created the following restrictions on the use and enjoyment of said property, to be attached to and become a part of the deed to the property. The undersigned Owner, for himself/herself and for his/her heirs, assigns, and successors in interest, covenants and agrees that: "The number of dwelling units on the property shall be limited to two." /l f/ 4 1 2 3 4 5 6 ,7 8 9 10 11 12 13 141 15 16 17 18 19 20 21 22 23 24 25 26 27 COURT PAPER fTATi O, GLI,OAHIA STD. 113 tRj O41I a.. Owner agrees to record this Deed Restriction in the Recorder's office for the County of Orange as soon as possible after the date ofitsexecution. DATED: / Gcr/ti lgrs OWNER Cit ew ort Beach TYPK OR RRINT NIYAF, OF AB VE , M LESSEE Ronald Melville TYPE R PRINT NAME OF ABOVE NOTE TO NOTARY PUBLIC: If you are notarizing the signatures of persons signing on behalf of a corporation, partnership, trust, etc., please use the correct notary jurat (acknowledgment) as explained in your Notary Public Law Book. State of California, County of Los Angeles ss On this 5th day of March in the year 85 , before me Pel i x Alirnra,Tn a Notary Public, personally appeared Ronald E. Melville , personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to this instrument, and acknowledged that he/she executed it. NOT RYPUBLIG IN AND FUR SAID C U� NT?—AND STATE OFFICIAL SEAL a FELIX ALVARADO NOTARY PUBLIC - CALIFORNIA LOS ANGELES COUNTY !Ay Comm. expires JU!! 4, 1886 _4_ Felix Alvaradp 1 2 3 4 5 10 11 12 13 14 15 16 17 18 1s 20 211 22 23 24 25 26 27 This is to certify that the deed restriction set forth above is hereby acknowledged by the undersigned officer on behalf of the California Coastal Commission pursuant to authority conferred by the California Coastal Commission when it granted Coastal Development Permit No. 5-84 515 on October 11, 1984 and the California Coastal Commission consents to recordation thereof by its duly authorized officer. Dated: L{JLIQ/}}t�jPn cg3 �Q$ i�'F�irnw►dP Gaiifornia7Goastal-omission STATE OF ) )ss COUNTY OF &7jn -47^0-pe-Ion ) On 'DorD,v, 6A aR', 192q before me --UU IJAV)UAX� rnnonQ. , a Notary Public, personally appeared -j 2. prm a h personally known to me to be (or proved to me on the basis of satisfactdry evidence) to be the person who executed this instrument as the ULUY (4!2G IS' Y , —VFITLE and authorized representative of the California Coastal Commission and acknowledged to me that the California Coastal Commission executed it. OFFICIAL SEAL h, P,C PAH 5 nr- .nUBI (3 . .( E f107Any W6UC - CALIFORr71A „ 'r �a:�nasco courrrt ` = M/ comm. expire; MAY 2D, 1988 COURT PAPER RTATO� GIJIORNIA STn.R I I7 (RRV. R•T7,'1 ORI —5 — t CITY OF NEWPORT BEACH P.U. BOX 1768, NEWPORT BEACH, CA 92663.3884 Planning Department 640-2218 Modifications Committee Findings and Actions Application No.: 2976 Applicant: Ron Melville Address of Property Involved: 22 •Beacon Bay Legal Description: Lot 22 Beac -Bay Modification Requested: to permit replacement of an existing enclosed porch that encroaches into the front yard setback with a new enclosed porch and construction of a second story bay window that are proposed to encroach 11'-6" and 2'0" respectively into the required 15 foot front yard setback area adjacent To- the bay. The Modifications Committee on July 17, 1984 approved the application subject to the following conditions: 1. That development shall be in substantial and elevations. not The Modifications Committee determined in this case that the proposal would not be detrimental to persons, property or improvements in the neighborhood and that the modification as approved would be consistent with the legislative intent of Title 20 of the Newport Beach Municipal Code, and made the following findings: 1. That the Architectural Committee of the Beacon Bav Community Association is in favor of the proposal. 2. That the approved plans are consistent with other lzm NOTE: This approval shall extend for a period of 24 months from the end of the appeal period, and cannot be extended. The decision of the Committee may be appealed to the Planning Commission within 14 days of the date of the decision. Any appeal filed shall be accompanied by a filing fee of $484.00. No building permits may be issued until the appeal period has expired. MODIFICATIONS.COMMITTEE PLANNING DEPARTMENT JAMES D. HEWICKER, Director By W l l� William R. Laycock,� Current Planning Administrator NOTE: The above application number must be affixed to the plans when being submitted for plan check and building permits. WRL/kln 3300 Newport Boulevard, Newport Beach Ll MARINERS ESCROW CORPORATION CITY OF NEWPORT BEACH 3300 NEWPORT BLVD. NEWPORT BEACH, CALIFORNIA ATTN: KEN DELINO 4/4/84 ESCROW: 1961 JP DEAR KEN: PLEASE FIND ENCLOSED A CERTIFIED COPY OF BUYER AND SELLER CLOSING STATEMENT, RE: 22 BEACON BAY. SINCERELY, JACKIE PENNEY DDDD� EASTMEZZANINE • FOUR CORPORATE PLAZA DRIVE • NEWPORT BEACH, CALIFORNIA 92660 • (714)640-6040 B. TYPE OF LOAN A. IMPERIRL SRV111GS 1. 0 FHA 2. 0 FmHA 3.Q;FONV.UNINS AND LOAN ASSOCIATION. q, OVA 5 0 CONV. INS. A FEDERAL SAVINGS AND LOAN ASSOCIATION 6. File Number 7. Loan Number: US DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT 96 COCt -fi:L h33-:I. SETTLEMENT STATEMENT 8. Mortgage Insurance Case Number; C. NOTE: This form is furnished to give you a statement of actual settlement costs. Amounts paid to and by the settlement agent are shown. Items marked "(p o.c.y' were paid outside the closing; they are shown here for informational purposes and are not included in the totals. D., NAME OF BORROWER: E.NAME OF SELLER: F. NAME OF LENDER: I RCINf=I)...If I.- MELV:I:I...I..E SECURITY PACIFIC A13 'y IciiL...lJ1CJl( IMPERIAL SAVINGS AND 709 l i iERAL.II BAY LOAN ASSOCIATION LAGUNA PEAT.".I-Iv CA 92651. G. PROPERTY LOCATION: H. SETTLEMENT AGENT: I. SETTLEMENTOATE: 22 RULII'1r::R ROAD MARINERS ESCROW CORP. '3/30/84 r (PLACE OF SETTLEMENT: NEWP0NT BEACHY CA., 1/26 t FOUJR CORPORATI--: -F'I.-A7-A NEWP0RT BEACH, r CA 92660 J. SUMMARY OF BORROWER'S TRANSACTION 100. GROSS AMOUNT DUE FROM BORROWER: 101. Contract sales price 400-820„0( 102, Personal properly 103. Settlement charges to borrower (line 1400) 104. 105. Adjustments for items paid by seller in advance 106, City/towntaxes to 107. Countytaxes3/3® 4/1 8.00 108. Assessments to 109. H.O. $350.00 PER A 3/30-2/1 292.57- ,10. GR. RENT 793.76 er A 111. 0 t0 1 1 85 597.46 112. 120• GROSS AMOUNT DUE FROM BORROWER 613.986.75 200. AMOUNTS PAID BY OR IN BEHALF OF BORROWER: 201. Deposit or earnest money 100 000.00 202. Principal amount of new loan(s) 203. Existing loan(s) taken subject to 204, PAID OUTSIDE OF ESCROW 60,082.00 205, PURCHASE MONEY DEED OF TRUST 459 000.00 206. 207. 208. 209. Adjustments for Items unpaid by seller 210. City/towntaxes to 211. County taxes to 212. Assessments to 213. 214. 215. 216. 217. 218. 219. 220. TOTALPAIDSY/FOR BORROWER 619,082.00 300. CASH AT SETTLEMENT FROM/TO BORROWER 301. Gross amount due from borrower (line 120) 302. Less amounts paid by/for borrower (line 220) 303 CASH (0 FROM) ([4TO) BORROWER 5,095.25 LP•1I I (REV. 7.82) K. SUMMARY OF SELLER'S TRANSACTION 400. GROSS AMOUNT DUE TO SELLER: 401. Contract sales price A00,4 R90: ) 402. Personal property 403. 404 405. Adjustments for Items paid by seller in advance 406. City/towntaxes to 407. Countytaxes 1 8.00 408. Assessments to 469. R 30-2 1 292.57 410.13R. RENI $7 6 per 411. 313at0 9 412. 420. GROSS DUE - TOSELLER 601 ,718.03 500. REDUCTIONS IN AMOUNT DUE TO SELLER: 5gl. Excess deposit (see Instructions) 502. Settlement charges to seller (line 1400) 44 654.40 503. Existing loan(s) taken subject to 504. Payoff of first mortgage loan 505. Payoff of second mortgage loan 506. PAID OUTSIDE OF ESCROW 60-082-on 507. 508. 509. Adjustments for items unpaid by seller 510. City/towntaxes to 511. County taxes to 512. Assessments to 513. 514. 515. 516. 517. 518. 519. 520. TOTAL REDUCTION AMOUNT DUE SELLER 104,736.40 800. CASH AT SETTLEMENT TO/FROM SELLER 601. Gross amount due to seller (line 420) 802. Lass reduction In amount due seller (line 520) e03. CASH (EXTO) (0 FROM) SELLER 496 , 981 .63 CERiltREl7 GE A THE AND CORRECT P O'FT10 IN 1 of 2 MARINERS ESCROIV HUP-1 (nev.rro/ Form Approved' OMB NO.63-R-160t " . 0 0 L SETTLEMENT CHARGES 700. TOTAL SALES/BROKERS COMMISSION based on price $ (g, %= PAID FROM BORROWER'S FUNDSAT SETTLEMENT PAID FROM SELLER'S FUNDSAT SETTLEMENT Division of Commission (line 700) as follows: ,D20.50 to INDO 702. $ II to UNIQUE 703 Commission paid as Settlement 704 800. ITEMS PAYABLE IN CONNECTION WITH LOAN 801. Loan Origination Fee % t 802. Loan Discount % 803. Appraisal Fee to 804. Credit Report to f 805 Lender's Inspection Fee 800. Mortgage Insurance Application Fee to 807 Assumption Fee Bus. o't11 R FFiF 2% -SRAKSF� mD 12 016.40 all __ still. 11 EMS REQUIRED SY LENDER TO DE PAID IN ADVANCE 00I. Interest from to Q.. /day -ter 002. Mortgage Insurance Premium for months to 396.12 903. Hazard insurance Premium for years to 653.00 904, years to 905 1000. RESERVES DEPOSITED WITH LENOER 1001, Hazard msurancu months@$ permonth 1002 Mortgage insurance months@$ permonth 1003. City property taxes months@$ permonth 1004 County prop ertytaxes months@$ permonth 1005 Annual assessments months @$ permonth 1006. months @$ permonth 1007, months @$ permonth 1008. months @$ permonth _ 1100. TITLE CHARGES 1101. Salllernont or closing lee to _ 1102. Abstraclortitle search to '"" '• '� �� 1103 Title examination to 1104. Title Insurance binder to 1105. Document preparation to 1100. Notaryfees to •, "' }`RF, •' 1 0.00 1107 Attorney's fees to includes above items numbers: 1108, Title Insurance to , includes above Items numbers: 1109. Lender's coverage S 1110. Owner'scovemge $ 11n. r.•:,:' r-•�arN1rzr:r•ui:• v<'� 1112c:1 Ir,�1:-SC•,j{( 1113. 35.00 1200. GOVERNMENT RECORDING AND TRANSFER CHARGES 1201. Recording fees: Dead S : Mortgage $ : Releases $ 22.0 6.00 1202.City/county tax/stamps, Deed S :Mortgage s 1203, Slate lax/stamps. Deed .Mortgage $ 1204. ADD_ILUM R S-RD NG EES 120s RESIDENTIAL REPORT 25.00 22.00 1300. ADDITIONAL. SETTLEMENT CHARGES 1301, Survey to 1302. Pest Inspection to 1303. Really Tax Contract __ 13_ 04 CANSiH EE�A,_CIT_ 1305. TOTAL SETTLEMENT CHARGES 1400. tenter on 1IM03103.80011on J end 502. Section K) 150.00 r1VU•1 triev 5.76) LP•111 (REV. 7.82) ' CERi IFtEO �'0 GE A T RcE Aid CORREC" . Y 0 i RI , L 2 of - MARINERS ESCROW 0 CITY OF NEWPORT BEACH OFFICE OF THE CITY MANAGER April'21 1984 TO: TED KRAMP, Data Processing Manager FROM: Executive Assistant SUBJECT: LOT NO. 22, BEACON BAY Effective April-1, 1984, Lot No. 22 Beacon Bay changed owners as a result of death to.James P. Crane. The new lessee, Ronald E. Melville, has executed a lease with the City and this lot will now be an active account. The Lease payments will be calculated on 2-1/2% of $600,820 ($15,020.50), minus the annual Beek pay- ment ($793.76) divided by 12 months, or a monthly total of $1,317.86. Please begin billing Mr. Melville as of April 1, 1984 at 709 Emerald Bay, Laguna Beach, CA 92651. KENNETH J. IPLINQ KJD ; mm cc: City Manager RECEIVED FROM FOR+: CITY OF NEWPORT BEACH NEWPORT BEACH, CALIFORNIA 92663 RECEIPT No. 03153 DEPARTMENT BY i/////////^/ I V s MARINERS r ` ESCROW CORPORATION 9. 2g 1g8 March 29, 1984to City of Newport Beach 3300 Newport Blvd. Newport Beach, California Attn: Ken Delino Re: Escrow No. 1961-JP 22 Beacon Bay Dear Mr. Delino: In connection with the above numbered escrow, and the leasehold transfer to Ronald E. Melville, enclosed herewith is'our check in the amount of $100.00, representing the fee required by the City of Newport Beach for the assignments. Anything you can do to expedite this matter would be greatly appreciated. We would still like to close escrow Friday, March 30. Please call the undersigned as soon as the necessary papers are signed, and I will arrange for a messenger. Thank you. Very truly yours, 4tct.� Laura Pershall EASTMEZZANINE • FOUR CORPORATE PLAZA DRIVE • NEWPORT BEACH, CALIFORNIA 92660 • (714)640-6040 MARINERS ESCROW CORPORATION March 15, 1984 City of Newport Beach 3300 Newport Blvd. Newport Beach, California / Attn: Ken Delino Re: Escrow No. 1961-JP Re: 22 Beacon Bay Dear Mr. Delino: In connection with the above numbered escrow, I am herewith enclosing Resolution No. 10040, in duplicate, signed by Ronald E. Melville. Our escrow is scheduled to close March 30, however Mr. Melville will be unavailable after March 23, so any additional papers requiring his signature must be prepared by that time. If there are any other papers to be signed, please advise the under- signed as soon as they are ready, and I will arrange fora messenger. If you should have any questions, please do not hesitate to contact the undersigned. Very truly yours, Laura Pershall for Jackie Penney EASTMEZZANINE • FOUR CORPORATE PLAZA DRIVE • NEWPORT BEACH, CALIFORNIA 92660 • (714)640-6040 CITY OF 'NEWPORT BEACH P.O. BOX 1768, NEWPORT BEACH, CA 92663-3884 OFFICE OF THE CITY MANAGER ? (714) 640-2153 February 24, 1984 Ms. Laura Pershall Mariners Escrow Corporation East.Mezzanine Four Corporate Plaza Drive Newport Beach, California 92660 Dear Ms. Pershall: SUBJECT: Escrow No. 196,1-JP #22 Beacon Bay, Newport Beach Enclosed you will find two copies of the lease documents. It is requested that you have executed both copies and return them to me. I will then have the Mayor execute both copies and mail one back to you or to the buyer, whichever is appropriate. The attached material assumes a purchase price of $600,820, and the annual ,lease payments to the City would be 2-1/2% of that or $15,020.50 as written in on Page 2,of the Agreement to Lease. This represents an increase from the current annual lease of $8,020.80. The only page that your client should sign is Page 6 of the Agreement to Lease. No other pages are to be signed or executed at this time. Please fill in the dates on Pages 1 and Ywith the date of the close of escrow. Also, please return to me a copy of the escrow closing statement and an address where we may bill the lessee. If you have any questions, please feel free to call me. Sincerely, KENNETH J. D`LIND Executive Assistant KJD;mm enclosures (two) 3300 Newport Boulevard, Newport Beach 0 LAW OFFICES WITTER AND HARFOLE DEBRA M. OLSBN ATTORNEY AT LAW (714)644.7600 (213)E24.1311� NEWPORTCENTER FINANCIAL PLAZA 270 LA wmU) T m cCN1LR 610 NewP C2 OR.•SURE 1330 330 SOUTH FIGUEROA STREET NEWPORT BEACH. CALIF. 92660 LOS ANOCLES. CALIF. 90071 BRADD JAMES THOMAS, SRA 311 JASMINE CORONA DEL MAR, CA 92626 REAL ESTATE APPRAISER 714, 673.3270 0 MARINERS ESCROW CORPORATION February 22, 1984 City 'of Newport Beach 3300 Newport Blvd. Newport Beach, California Attn: Ken Delino Re: Escrow No. 1961-JP 22 Beacon Bay, Newport Beach Dear Mr. Delino: Pursuant to our telephone conversation of yesterday, I am herewith enclo- sing a copy of our escrow instructions for the sale of the leasehold interest in the above mentioned property. Please forward the necessary transfer documents, together with your statement of fees, if any. If you should need anything further, or should you have any questions, please do not hesitate to contact the undersigned. Very truly Ur, Laura Pershall for Jackie Penney EASTMEZZANINE • FOUR CORPORATE PLAZA DRIVE • NEWPORT BEACH, CALIFORNIA 92660 • (714)640-6040 ' MARINERS �4 `� ESCROW CORPORATION Page 1 of 2 Sale Escrow Instructions Jackie Penney Escrow Officer I/We will hand you the sum of $540,738.00, including proceeds of a new loan, the sum of $60,082.00 having been paid outside of escrow, with which escrowholder is not to be concerned East Mezzanine, Four Corporate Plaza Newport Beach, California 92660 (714) 640.6040 1961-JP Escrow Number 2-21-84 Paid outside of Escrow 60,082 00 Cash through Escrow 540,738 00 Encumbrances of record In addition to the aforementioned sums, buyer will hand you, prior to close of escrow, sufficient funds to I New Encumbrances cover adjustments, prorations, recording fees and your escrow charges, and will deliver to you any instru• merits which this escrow requires shall be executed by me, all of which You are instructed to use provided Total Consideration that on or before 3-30-84 you hold a policy of title insurance with the usual 1 600.8z0 0 title company's exceptions, with a liability of $ 600,820.00 covering A Leasehold Estate in and to 22 Beacon Bay, Newport Beach, more fully described by legal description on addendum and by reference made a part hereto showing title vested in: RONALD E. MELVILLE, an unmarried man Free from encumbrances except: (1) General and special county and city taxes, if any, together with special district levies, if any, included and collected with tax bill. 12) Covenants, conditions, restrictions, reservations, rights, rights of way, easements and exceptions of minerals, oils, gas, water, carbons and hydrocarbons on or under said land, now of record, and in deed to file, if any, affecting the use and occupancy of said property. (3) A First Trust Deed to file to secure a note, as per its further terms and conditions to be placed in escrow. Buyer's execution of loan documents will be deemed to be approval of all terms and conditions. INSTRUCTIONS: 1. It is understood and agreed between the parties herein that this transaction is contingent upon court order confirming sale. 2. This transaction is further contingent upon buyer's approval of Preliminary Title Report on subject property within 5 days of receipt of same by buyer. Failure of buyer to notify escrowholder in writing of disapproval will be deemed to be satisfaction of this contingency. 3. Seller agrees to furnish buyer with a current Residential Report from the City of Newport Beach covering subject property. Escrowholder's only concern with said report is to reimburse the party, if any, presenting the paid receipt from the City of Newport Beach. 4. Seller agrees to pay all transfer fees, as required, for the sale of this property. 5. Buyer's signature on these escrow instructions signifies his approval of ground lease documents and CC&R's on subject property. 6. Prior to close of escrow, seller shall cause a structural pest control inspection to be made of the subject property at his expense by a duly licensed structural pest control operator and shall furnish to buyer a copy of the resulting structural pest control inspection report prepared by such structural pest control operator. If no infestation or infection of wood destroying pests or organisms (including termites, beetles, dry rot and fungus) is found, such report shall include the certification required by law If above encumbrance is a purchase money trust deed, endorse interest on note as of date of recording deed. In event unpaid balance of trust deed(s) of record are more or less than the sum(s) set forth above, adjust difference 1 1 in cash 1 1 thru deed of trust to file. Prorate taxes on real property only, based on the latest tax bill in your possession or on latest available tax figures furnished by the title company as of Close Of escrow Prorate interest on loans of record as of n/a Prorate rents as of n/a based on rent statement handed you. Any rents in arrears to be disregarded in your prorations. %sprrsurance as handed you as of close of escrow from buyer and in the event the lender requires additional insurance to cover new loan, this is your authorization to order same and pay premium, tf any, from buyer's funds. As of n/a credit seller and debit buyer the amount of impounds, if any, as disclosed by beneficiary statement from the holder of the loan of record. 6_�............. .. ,.Cahn. rind nrnunel rent. if any. as of Cl OSe of escrow "Ora C EACH PARTY SIGNING THESE INSTRUCTIONS HAS READ THE ADDITIONAL ESCROW CONDITIONS AND INSTRUCTIONS ON THE REVERSE SIDE HEREOF AND APPROVES, ACCEPTS, AND AGREES TO BE BOUND THEREBY AS THOUGH THE REVERSE SIDE HEREOF APPEARED OVER THEIR SIGNATURES. The undersigned hereby agrees to pay, on demand, charges for drawing, recording and notarizing an documents, charges or ns,v ceup.a ir. •n •r, ••••••n-• —• •-•• institution, Many, and the buyer's and/or borrower's customary escrow fees, necessary to complete -this escrow. _ Lender's or Lender's or Buyer'�s Ig� atlBuyer's Signature AddresfHLD .MELVILLE Phone The foregoing terms, provisions, conditions and instructions are hereby approved and accepted in their entirety and concurred in by me. I will hand you necessary documents andfor funds called for on my part to cause title to be shown as above, which you are authorized to deliver when you hold for my account the sum of s 540, 738. 00 together with any documents, due the undersigned as described above, within the time as above provided. Pay your escrowcharges. my recording fees, charges for evidence of title as called for, whether or not this escrow is consummated, except those the buyer agreed to Pay -YOU are hereby authorized to pay bonds, assessments• taxes, and any liens or encumbrances of record, plus accrued interest, charges and bonus• if any. Affix Internal Revenue Stamps as required on Deed to property I am conveying. License No. Pay commission of515,020.50 to Lingo Real Estate 15,020.50 Unique Homes Borrower's ig at SECURITY PACIFIC NATIONAL BANK Borrower's or AY: Seller's Signature Seller's Signatu B,5, Executor of the Estate 01 0 fiver P. H. Crane, deceased Phone MEC-100 PAGE 2 OF 2 ADDITIONAL ESCROW CONDITIONS AND INSTRUCTIONS 1. Your duty to act as escrow holder does not commence until these Instructions, signed by all parties, ore received by you. Until such time either party may unilaterally cancel and upon written request delivered to you, the parry may withdraw funds and documents he previously handed to you. 2. All funds received In this escrow shall be deposited with a State or National Bank with other escrow funds. Make disbursements by your chock; checks not presented for payment within six months after data are subject to service charges in accordance with your schedule In affect from time to time. Make all adjustments and proratings on the basis of a 30day month. "Close of Escrow" Is the day instruments are recorded. All documents and funds due the respective parties herein are to be mailed to the addresses set out below their respective signatures, unless otherwise Instructed. Our signatures on any documents and instructions pertaining to the escrow indicate our unconditional approval of some. Whenever provision is made herein for the payment of any sum, the delivery of any Instrument or the performance of any act "outside of escrow," you as escrow holder shall have no responsibility therefor, shall not be concerned therewith and are specifically relieved of any obligation relative thereto. 3. You shall not be responsible or liable in any manner whatsoever for the sufficiency or correctness as to form, manner or execution or validity of any documents deposited in escrow, nor as to the Identity, authority or rights of any person executing the some, either as to documents of record or those handled in this escrow. Your duties hereunder shall be limited to the safekeeping of such money and documents received by you as escrow holder, and for the disposition of the some in accordance with the written Instructions accepted by you in this escrow. You shall not be required to take any action in connection with the collection, maturity or apparent outlaw of any obligations deposited in this escrow, unless otherwise Instructed. 4. Sailor guarantees, and you shall be fully protected In assuming, that as to any insurance policy handed you each policy is in force, has not boon hypothecated, and that all necessary premiums therefor have been paid. You will transmit for assignment any insurance policy handed you for use In this escrow, but you shall not be responsible for verifying the acceptance of the assignment and policy by the Insurance company. ESCROW HOLDER WILL MAKE NO ATTEMPT TO VERIFY THE RECEIPT OF THE REQUEST FOR ASSIGNMENT BY THE ISSUING COMPANY, You are hereby placed on notice that If the Insurance company should fall to receive sold assignment, the Issuing company may deny coverage for any loss suffered by Buyer. IT IS THE OBLIGATION OF THE INSURED OR HIS REPRESENTATIVE TO VERIFY THE ACCEPTANCE OF THE ASSIGNMENT OP THE POLICY BY THE ISSUING COMPANY, B. Deliver assurance of title, and insurance policies, If any, to holder of senior encumbrance or his order, or if,there be no encumbrances, than to the buyer or his order. 6. If the conditions of this escrow have not boon complied with prior to the expiration of time provided for heroin, or any extension thereof, you are nevertheless to complete the escrow as soon as the conditions, except as to time, have been complied with unless written demand shall have boon mode upon you not to complete It, Following receipt of such written demand not to complete the escrow, you are to promptly mall a copy of sold demand to the other party. 7. NO NOTICE, DEMAND OR CHANGE OF INSTRUCTIONS SHALL BE OF ANY EFFECT IN THIS ESCROW UNLESS GIVEN IN WRITING BY ALL PARTIES AFFECTED THEREBY. In the event conflicting demands or notices ore made, or served upon you or any controversy arises be- tweon the parties hereto or with third persons growing out of or relating to this escrow, you shall have the absolute right to withhold and stop all further proceedings in, and performance of, this escrow, until you receive written, notification satisfactory to you of the settlement of the contro. versy by agreement of the parties thereto, or by final judgment of a court of competent jurisdiction. All of the parties to this escrow hereby jointly and severally promise and agree to pay promptly on demand, as wall as to indemnify you and to hold you harmless from and against all litigation and interpleader costs, damages, judgments, attorney's fees, expanses, obligations and liabilities of ovary kind which, in good faith, you may incur or suffer In connection with or arising out of this escrow, whether sold litigation, interpleader, obligations, liabilities or expenses arise during the performance of this escrow, or subsequent thereto, directly or indirectly. 8, You are hereby authorized to deposit any funds or documents handed you under these escrow Instructions, or cause the same to be deposited, with any duly authorized sub escrow agent, subject to your,order at or prior to close of escrow, in the event such deposit shall be necessary or con- venient for the consummation of this escrow. 9, All parties agree that as for as your rights and liabilities are Involved, this transaction is an escrow and not any other legal relation, and you are an escrow holder only on the within expressed terms, and you shall have no responsibility of notifying me or any of the parties to this escrow of any sale, resole, loan, exchange, or other transaction involving any property heroin described or of any profit realized by any person, firm or corporation (broker, agent and parties to this and/or any other escrow included) In connection therewith, regardless of the fact that such transaction(0, may be handled by you In this escrow or in another escrow. 10. You are not to be concerned with the giving of any disclosures required by Federal or State law, specifically but not exclusively, RESPA (Real Estate Settlement Procedures Actl, Regulation Z (Truth in Lending disclosures) or other warnings, or any warranties, express or implied. Neither are you to be concerned with the affect of zoning ordinances, land division regulations, or building restrictions which may pertain to or offect,the land or improvements that are the subject of this escrow. 11. The parties to this escrow have satisfied themselves outside of escrow that the transaction covered by this escrow is not in violation of the Sub- division Map Act or any other law regulating land division, and you as escrow holder are relieved of all responsibility and/or liability in connection therewith, and are not to be concerned with the enforcement of said laws, t2. In the event any Offer to Purchase, Deposit Receipt or any other form of Purchase Agreement is deposited In this escrow, it is understood that such document shall be effective only as between the parties signing said document. You as escrow holder are not to be concerned with the terms of such document and arc relieved of all responsibility and/or liability for the enforcement of such terms and your only duty being to�comply with the Instructions sot out in this escrow. In connection with any loan transaction Involving an FHA, or VA loan, you are authorized to deliver a copy of any such escrow instructions to FHA, VA or lender as the case may be. 13. Time Is of the essence of these escrow Instructions. In the event of failure, to pay fees or expenses due you hereunder, on demand,( agree to pay a reasonable fee for any attorney's services which may be required to collect such fees or expanses. 14.--If-a-porty-to, this escrow-unllotomily^osalgnroroMars the procoeds of -this escrow to be pafd`to otnor then lhe`driginat partiestothis ascro'w,such assignment or order shall be subordinated to the expenses of this escrow, lions of record on the subject property, and payments directed to be made by original parties together, If the result of such assignments or order would be to leave the escrow without sufficient funds to close, then you are directed to close noverthcloss, and to pay such assignments or orders only out of the net proceeds due except for such assignments or orders, and to pay them in the order in which such assignments or orders ore received by you. You are to furnish a copy of those Instructions, amendments thereto, closing statements and/or any other documents deposited In this escrow to the lender or lenders and/or the real estate broker or brokers involved in this transaction upon request of such fenders or-brokors. In the event of an assignment or transfer of interest by operation of law, with or without the approval or consent of any or all of the parties hereto, you shall retain the right to deduct any and all escrow costs, fees and expenses provided for herein from sold assigned or transferred funds, properties or rights, sold assignment or transfer notwithstanding. 15, These instructions may be executed in counterparts, each of which shall be deemed an original regardless of the date of Its execution and delivery. All such counterparts together shall constitute one and the some document. 16. The parties to these escrow instructions authorize you to destroy these Instructions and all other Instructions and records in this escrow at any time after five 15) years from the close of escrow. MARINERS ESCROW CORPORATION ADDENDUM TO ESCROW INSTRUCTIONS 22 Beacon Bay, Newport Beach Mariners Escrow OFFICE ESCROW NO. 1961-JP East Mezzanine, Four Corporate Plaza Newport Beach, California 92660 (714)640-6040 Date 2-21 , 1s84. INSTRUCTIONS CONTINUED: to the effect that the subject property was inspected and that no evidence of active infestation or infection was found. All work recommended in such report to repair damage caused by infestation or infection of wood destroying pests or organisms found in accessible areas and all work to correct conditions that caused such infestation or infection shall be done at the expense of seller, including, without limitation, any leaking shower stalls and replacement of any tile removed to make such repairs, and such structural pest control operator shall make the certification required by law to the effect that the subject property is then free of evidence of active infestation or infection, all prior to close of escrow. Buyer agrees that any work recommended to correct conditions usually deemed likely to lead to infestation or infection of wood destroying pests or organisms, but where no evidence of existing infestation or infection is found with respect to such conditions, is not the responsibility of seller, and such work shall be done only if requested by buyer and then at the expense of buyer and need not be completed prior to close of escrow. MEMORANDUM WITH WHICH ESCROWHOLDER IS NOT TO BE CONCERNED: 1. Seller warrants that all plumbing, water heater(s), furnace(s), appliances, electrical systems and devices, air Conditioner(s) (if any), garage door opener(s) and remote control(s) thereto, sprinkler systems and all other electrical, electronic and mechanical apparatus on the subject property shall be in good operating condition upon the close of escrow and that the landscaping and grounds on the subject premises will be maintained in at least their present condition until close of escrow. Buyer and seller hereby acknowledge and agree that Broker shall incur no liability whatsoever as a result of any failure of seller to fulfill his obligation under this paragraph. 2. Buyer and seller further agree that buyer, accompanied by a representative of the listing and/or selling broker, shall have the right to inspect the subject property not more than 5 days prior to the date the subject escrow is scheduled to close in order to assure himself that the items specified above are then in good working order and that the landscaping and grounds have been maintained as required up to that time. Any deviations from the requirements of this paragraph discovered by buyer during such inspection shall be promptly communicated in writing to seller and the escrow holder and shall be corrected by seller prior to close of escrow. 3. Buyer and seller agree that included in the purchase of the subject property are all tacked down carpeting, all window coverings, all built-in appliances, all lighting fixtures, including, but not limited to, chandeliers and swag lamps and refrigerator. END OF ADDENDUM Signature Signature , Signature CFt'IIRITy PACIFICNATIONAL BANK Signature as Executor of the Estate of Oliver P. H Crane, deceased ADDENDUM MEC-112 `j MARINERS moo ESCROW CORPORATION ADDENDUM TO ESCROW INSTRUCTIONS 22 Beacon Bay, Newport Beach Mariners Escrow OFFICE Date ESCROW NO. 1961-JP The legal description of subject property is as follows: 7t Mezzanine, Four Corporate Plaza Newport Beach, California 92660 (714)640.6040 2-21 , 19 84 Lot 22 in the City of Newport Beach, County of Orange, State of California. as per map filed in Book 9, Pages 42 and 43 of Record of Surveys, in the Office of the County Recorder of said County, together with certain portions of adjoining lots "I" and "H", as shown upon said Map and as described more fully in the Sublease recorded June 11, 1940 in Book 1052, Page 101, Official Records, as amended by instrument recorded December 29, 1950 in Book 2122, Page 279, Official Records. END OF ADDENDUM. Signature Signature RONALD E. MELVILLE Signature SECURITY PACIFIC NATIONAL BANK, Signature. as Executor of the Estate of Oliver P.H. Crane, Deceased ADDENDUM MEC • 111 - - - - - - - - - -;, CITY OF NEWPORT BEACH '4 (714) 640-2151 July 22, 1981 Mr. James P. Crane No. 22 Beacon Bay Newport Beach, Calif. 92660 r Dear Mr. Crane: Enclosed you will find an executed copy of "Agreement to Rescind" the Agreement to Lease concerning your Lot No. 22 in Beacon Bay. Thank you. Sincerely, AOBERTUL L. WYNN � n City Manager - RLW : mm Enclosure City Hall 0 3300 Newport Boulevard, Newport Beach, California 92663 AGREEMENT TO RESCIND The CITY OF NEWPORT BEACH, (hereinafter "City") and JAMES P. CRANE (hereinafter "Sublessee"), having entered into an Agreement to Lease dated June 25, 1981, attached hereto as Exhibit "A", hereby agree to rescind this Agreement to Lease. City and Sublessee stipulate that no consideration has exchanged hands and that agreement of each party to surrender their respective rights under the Agreement to Lease, attached hereto as Exhibit "A", constitutes adequate consideration for this Agreement to Rescind. City and Sublessee stipulate and agree that each of the parties hereto'is relinquishing all of the rights that arise under the Agreement to Lease and that performance required of either party under this Agreement to Lease is waived by the other. 5 IN WITNESS WHEREOF, the parties have caused this Agreement to Rescind to be executed on the date specified herein. Dated: July 20, 1981 ATTEST: City Clerk CITY OF NEWPORT BEACH =I I .f'M SUBLESSEE Dated: ^—,P0 - f z I /1 s- J mes P. Crane rustee AS T ORIfJNAL 2 CITI CLERK OF THE CITY OF RF.WK*f 6EAC* DATES 0 0 CITY OF NEWPORT BEACH OFFICE OF THE CITY ATTORNEY (714) 640-2201 July 16, 1981 r. James P. Crane / } o. 22 Beacon Bay Emerald fMewport Beach. CA 92660 Re: Agreement to Rescind Agreement to Lease Dear Mr. Crane: On July 14, 1981 the City Council approved a Resolution authorizing the rec%ssion of the Agreement to Lease that you executed with the City regarding Beacon Bay number 22. Please execute the Agreement to Rescind and return to this office at your earliest convenience. Thereafter, the City will execute the document and return one fully executed copy to you. When you are in a position to execute again the Agreement to Lease in the proper vesting, please transmit the documents to the City Manager of the City of Newport Beach. Thank you for your your courtesy apd cooperation. Very/trulp youfh, *GH R\\VW �i City Attorney HRC/bf attach. xc: City Manager t City Hall • 3300 Newport Boulevard, Newport Beach, California 92663 July 16, 1981 Mr. James P. Crane No. 22 Beacon Bay Emerald Mewport Beach. CA 92660 Re: Agreement to Rescind Agreement to Lease Dear Mr. Crane: on July 14, 1981 the City Council approved a Resolution authorizing the recession of the Agreement to Lease that you executed with the City regarding Beacon Bay number 22. Please execute the Agreement to Rescind and return to this office at your earliest convenience. Thereafter, the City will execute the document and return one fully executed copy to you. When you are in a position to execute again the Agreement to Lease in the proper vesting, please transmit the documents to the City Manager of the City of Newport Beach. Thank you for v=. your courtesy and cooperation. Very truly yours, HUGH R. COFFIN City Attorney HRC/bf attach. xc: City Manager -'�� r 0 CITY OF NEWPORT BEACH (714) 640-2151 July 16, 1981 Mr. Oliver P. c/o Mr. James No. 22 Beacon Newport Beach, H. Crane Perry Crane Bay Calif. 92660 Dear Mr. Crane: Please be advised that on July 14, 1981, the Newport Beach City Council approved of the Recission of Agreement concerning your leased parcel in Beacon Bay. (Lot No. 22) it will be necessary for you to contact the City if and when you desire to sign the Agree- ment for the extension of..your lease at Beacon Bay. You are aware that the fees to the City increase in six month increments. Sincerely, ROBERT L. WYNN City Manager City Hall • 3300 Newport Boulevard, Newport Beach, California 92663 Agenda Item No. July 14, 1981 Page Two Subject: RECOMMENDATION Y F2(J) for Rescission It is recommended that the City Council approve a Resolution authorizing the rescission of the Agreement to Lease as to Nos. 22 and 48 Beacon Bay. DISCUSSION The tenants in Nos. 22 and 48 Beacon Bay have executed the Agreement to Lease and the Agreements to Lease have been executed by the City, all prior to July 1, 1981. Prior to July 1, the tenant on each parcel requested rescission of the Agreement, but since the Agreement had been executed by the City, the City staff is unable to rescind to permit recission, it required that the City Council adopt a resolution authorizing the rescission. Once rescission is effected, the tenant on each parcel will transfer his or her respective interest into a family trust and thereafter, re -execute the Agreements to Lease. The later execution, after July 1, 1981, of the Agreements to Lease will result in higher lease payments being made to the City, consistent with the scheduleyof rents which increase on a regular basis and an increase in the cost of living. The City will therefore receive additional funds when these Agreements to Lease are finally executed in their new format. No other requests will be considered after the July 1, 1981 effective date of the Beacon Bay Agreement to Lease. i ug o HRC/pr I )