Desert Hot Springs City Council
August 9, 2023

FIVEHUNDRED(500) FEETOFTHESUBSURFACEOFTHEPROPERTY.)
PARCELNO.2:

THE EAST1/2OFTHESOUTHWEST‘/4,ANDTHEEAST‘/2OF THE NORTHEAST‘/4OFTHE NORTHWEST‘/4OFTHESOUTHWESTM:OFSECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST, .2 SANBERNARDINOBASEANDMERIDIAN, STATEOFCALIFORNIA, ACCORDINGTOTHE OFFICIALGOVERNMENTPLATTHEREOF.

EXCEPTINGTHEREFROMTHESOUTHERLY40 FEETASCONVEYEDTOTHECOUNTYOF RIVERSIDE,BYDEEDRECORDEDJULY26, 1949ASINSTRUMENTNO.3081 OF OFFICIAL RECORDSOF RIVERSIDECOUNTY,CALIFORNIA.

ALSOEXCEPTINGTHEREFROMANYPORTIONLYINGWITHINTRACT32030-1ASSHOWNON FILEINBOOK404,.PAGES67 THROUGH75, OF MAPS,RECORDSOFRIVERSIDECOUNTY, CALIFORNIA.

ALSOEXCEPTINGTHEREFROMANYPORTIONLYINGWITHINTRACT32030-3ASSHOWNON ~pFILE IN BOOK419, PAGES29 THROUGH39, OFMAPS,RECORDSOF RIVERSIDECOUNTY, CALIFORNIA.
— :2 ;;.ALSO EXCEPTINGTHEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC.,A I COLORADOCORPORATIONBY DOCUMENTRECORDEDOCTOBER13, 2006, ASINSTRUMENT NO.2006-0756951 OFOFFICIALRECORDSOFSAIDCOUNTY.SAIDINTERESTIS FURTHER DESCRIBEDAS FOLLOWS: A
A.EANYANDJALL(I) OILRIGHTS,(II) MINERALRIGHTS,(III) NATURALGASRIGHTS,(IV) _—
—
‘ RIGHTS'TOALL3OTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(V)GEOTHERMAL “HEATRIGHTSORGEOTHERMAL SUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY, (VI)WATERRIGHTSANDCLAIMSOR RIGHTST0 WATERAND(VII)ALLPRODUCTSDERIVEDA " _i; ‘ FROMANYOF THE FOREGOING(COLLECTIVELY, "SUBSURFACERESOURCES")LOCATEDINOR

UNDERTHATICERTAINREALAPROPERTYSITUATEDINTHECOUNTYOFRIVERSIDE,STATEOF CALIFORNIADESCRIBEDIN EXHIBIT"A"ATTACHEDHERETOANDINCORPORATEDHEREIN I (THE"PROPER '—'—), TO THEEXTENTSUCHSUBSURFACERESOURCESHAVENOTBEEN PREVIOUSLYRESERVED;AND
B.THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE, I 7* STOREANDREMOVEANYOFTHESUBSURFACERESOURCESONORFROMTHEPROPERTY, — INCLUDINGWITHOUTLIMITATIONTHERIGHTTOWHIPSTOCKOR DIRECTIONALLYDRILLAND

I MINE,FROMLANDSOTHERTHANTHEPROPERTY, WELLS,TUNNELSANDSHAFTSINTO,

THROUGHOR ACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO BOTTOMSUCH PP WHIPSTOCKEDOR DIRECTIONALLYDRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR

A BEYONDTHE,EXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL,RETUNNEL, EQUIP, _. MAINTAIN,.REPAIR, DEEPENANDOPERATEANYSUCHWELLSOR MINES,BUTWITHOUTHE *RIGHT”TODRILL;*MINE,“ EXPLORE,OPERATE,PRODUCE,STOREOR REMOVEANYOFTHE A SUBSURFACERESOURCESTHROUGHOR INTHESURFACEOFTHEPROPERTYORTHEUPPER FIVEHUNDRED(500) FEETOFTHESUBSURFACEOFTHEPROPERTY.)
PARCEL3:

THATPORTIONOFTHEEAST1/2OFSECTION29, TOWNSHIP2 SOUTH,RANGE4 WEST,SAN

BERNARDINOBASEANDMERIDIAN, STATEOF CALIFORNIA, ACCORDINGTO THEOFFICIAL GOVERNMENTPLATTHEREOF. I
347/020269-0040
1036916.072108/07/23 -5 —
Item Number: 2.

COMMENCINGATTHESOUTHEASTCORNEROF SAIDSECTION29; THENCENORTHERLY ALONGTHEEASTERLYBOUNDARYOFSAIDSECTION29, A DISTANCEOF906 FEETTOTHE TRUEPOINTOF BEGINNING;THENCEWESTERLYANDPARALLELTHESOUTHERLYBOUNDARY OF SAIDSECTION29, ADISTANCEOF528 FEETTHENCENORTHERLYANDPARALLELWITH A THEEASTERLYBOUNDARYOF SAIDSECTION29, A DISTANCEOF577 FEET;THENCE EASTERLYANDPARALLELWITHTHESOUTHERLYBOUNDARYOFSAIDSECTION29, A DISTANCEOF 528 FEETTOTHEEASTERLYBOUNDARYOFSAIDSECTION29;THENCE SOUTHERLYALONGTHEEASTERLYBOUNDARYOF SAIDSECTION29, A DISTANCEOF577 FEETTO THETRUEPOINTOF BEGINNING.

ALSOEXCEPTINGTHEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC.,A COLORADOCORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2006,ASINSTRUMENT NO.2006-0756951OFOFFICIALRECORDSOF SAIDCOUNTY.SAIDINTERESTIS FURTHER DESCRIBEDAS FOLLOWS:

A. ANYANDALL(I) OILRIGHTS,(II) MINERALRIGHTS,(III) NATURALGASRIGHTS,(IV)

RIGHTSTO ALLOTHERHYDROCARBONSBYWHATSOEVERNAMEKNOWN,(V)GEOTHERMAL

HEATRIGHTSORGEOTHERMALSUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY, (VI)WATERRIGHTSANDCLAIMSOR RIGHTSTOWATERAND(VII) ALLPRODUCTSDERIVED FROMANYOFTHEFOREGOING(COLLECTIVELY,"SUBSURFACERESOURCES")LOCATEDINOR LCALIFORNIATDESCRIBEDINXHIBIT"A"ATTACHEDHERETOANDINCORPORATEDHEREIN 7’ I(THE’E"PROPERTY"),’TO THEEXTENTSUCHSUBSURFACERESOURCESHAVENOTBEEN’ PREVIOUSLYRESERVED;AND I B. THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE, ,~— STORELANDREMOVEANYOFTHESUBSURFACERESOURCESONORFROMTHE PROPERTY, 7 INCLUDINGWITHOUTLIMITATIONTHERIGHTTO WHIPSTOCKORDIRECTIONALLYDRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,

THROUGHORACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO BOTTOMSUCH

WHIPSTOCKEDORDIRECTIONALLYDRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL,RETUNNEL, EQUIP,

I MAINTAIN,IREPAIR, DEEPENANDOPERATEANYSUCHWELLSOR MINES,BUTWITHOUTTHE P “RIGHTO DRILL,”MINE, EXPLORE, OPERATE,PRODUCE,STOREORREMOVEANYOFTHE

SUBSURFACERESOURCESTHROUGHOR IN THESURFACEOFTHEPROPERTYORTHEUPPER _ FIVEHUNDRED(500) FEETOFTHESUBSURFACEOFTHEPROPERTY.)
PARCELNO.4:

THENORTH165 FEETOF THEREALPROPERTYDESCRIBEDAS FOLLOWS:

THATPORTIONOFTHEEAST‘/2OFSECTION29, TOWNSHIP2 SOUTH,RANGE4 EAST, SANI 55 —~
I
—— BERNARDINOBASEANDAMERIDIAN, STATEOFCALIFORNIA, ACCORDINGTOTHEOFFICIAL GOVERNMENTPLATTHEREOF. A
’
COMMENCINGATTHESOUTHEASTCORNEROF SAIDSECTION29; THENCENORTHERLY ALONGTHEEASTERLYBOUNDARYOF SAIDSECTION,ADISTANCEOF 329.0 FEETTOTHE TRUEPOINTOFBEGINNING;THENCEWESTERLYANDPARALLELWITHTHESOUTHBOUNDARY OF SAIDSECTION,A DISTANCEOF 528.0 FEET;THENCENORTHERLYANDPARALLELWITH THE EASTERLYBOUNDARYOFSAIDSECTION,A DISTANCEOF 577.0 FEET;THENCEEASTERLY ANDPARALLELWITHTHESOUTHBOUNDARYOF SAIDSECTIONA DISTANCEOF528.0 FEET;

THENCESOUTHERLYALONGTHEEASTERLYBOUNDARYOF SAIDSECTION,A DISTANCEOF 347/020269»O04O
1036916.072108/07/23 -6-
. UNDERITHATCERTAINREALPROPERTYSITUATEDINTHECOUNTYOF RIVERSIDE,STATEOF Item Number: 2.

577.0 FEETTO THETRUEPOINTOFBEGINNING.

ALSOEXCEPTINGTHEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC.,A COLORADOCORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2006, ASINSTRUMENT NO.2006-0756951OF OFFICIALRECORDSOF SAIDCOUNTY.SAIDINTERESTIS FURTHER DESCRIBEDAS FOLLOWS:

A.ANYANDALL(I) OILRIGHTS,(II) MINERALRIGHTS,(III) NATURALGASRIGHTS,(IV)

RIGHTSTO ALLOTHERHYDROCARBONSBYWHATSOEVERNAMEKNOWN,(V)GEOTHERMAL

HEATRIGHTSORGEOTHERMALSUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY, (VI)WATERRIGHTSANDCLAIMSORRIGHTSTOWATERAND(VII) ALLPRODUCTSDERIVED FROMANYOF THE FOREGOING(COLLECTIVELY, "SUBSURFACERESOURCES")LOCATEDINOR

UNDERTHATCERTAINREALPROPERTYSTTUATEDINTHECOUNTYOF RIVERSIDE,STATEOF CALIFORNIADESCRIBEDIN EXHIBIT"A"ATTACHEDHERETOANDINCORPORATEDHEREIN . (THE"PROPERTY"),TOTHEEXTENTSUCHSUBSURFACERESOURCESHAVENOTBEEN PREVIOUSLYRESERVED;AND
B.THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,

STOREANDREMOVEANYOFTHESUBSURFACERESOURCESONOR FROMTHEPROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTO WHIPSTOCKORDIRECTIONALLYDRILLAND I —MINE,—FROM LANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO, IS
*9 -‘THROUGHOR%ACROSS THESUBSURFACEOFTHEPROPERTY, ANDTO BOTTOMSUCH 7=2"WHIPSTOCKEDORDIRECTIONALLY DRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR, . BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL,RETUNNEL, EQUIP,

MAINTAIN, REPAIR,DEEPENANDOPERATEANYSUCHWELLSORMINES,BUTWITHOUTTHE RIGHTETODRILL,‘MINE,XPLORE,OPERATE,PRODUCE,STOREORREMOVEANYOFTHE

A SUBSURFACE RESOURCESTHROUGHORINTHESURFACEOFTHEPROPERTY ORTHEUPPER E’ FIVEHUNDRED(500) FEETOF THESUBSURFACEOFTHEPROPERTY.) PARCELNO. 5:

A THATPORTIONFTHEEAST‘/2OF SECTION29, TOWNSHIP2 SOUTH,RANGE4AST,SAN BERNARDINOBASEANDMERIDIAN, STATEOFCALIFORNIA, ACCORDINGTOTHEOFFICIAL.

GOVERNMENTPLATTHEREOF
COMMENCING ATTHESOUTHEASTCORNEROFSAIDSECTION29;THENCENORTHERLY ALONGTHEEASTERLYBOUNDARYOF SAIDSECTION29, A DISTANCEOF 329 FEETTOTHE TRUEPOINTOFBEGINNING;THENCEWESTERLYANDPARALLELWITHSOUTHERLYBOUNDARY OFSAIDSECTION29, A DISTANCEOF 528 FEET;THENCENORTHERLYANDPARALLELWITH THEEASTERLYBOUNDARYOFSAIDSECTION29, A DISTANCEOF 577 FEET;THENCE EASTERLYANDPARALLELWITHTHESOUTHERLYBOUNDARYOF SAIDSECTION29, A DISTANCEOF528 FEET;THENCESOUTHERLYANDALONGTHEEASTERLYBOUNDARYOF SAID SECTIONS29, ADISTANCEOF577 FEETTOTHETRUEPOINTOFBEGINNING.

EXCEPTINGTHEREFROMTHENORTH165 FEETTHEREOF.

ALSOEXCEPTINGTHEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC., A COLORADOCORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2006, ASINSTRUMENT NO. 2006-0756951 OFOFFICIALRECORDSOF SAIDCOUNTY.SAIDINTERESTIS FURTHER DESCRIBEDAS FOLLOWS:

A. ANYANDALL(I) OILRIGHTS,(II) MINERALRIGHTS,(III) NATURALGASRIGHTS,(IV)

T RIGHTSTO ALLOTHERHYDROCARBONSBYWHATSOEVERNAMEKNOWN,(V)GEOTHERMAL 347/020269-0040
1036916.07aO8/07/23 -'7-
Item Number: 2.

HEATRIGHTSOR GEOTHERMALSUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY, (VI)WATERRIGHTSANDCLAIMSOR RIGHTSTOWATERAND(VII) ALLPRODUCTSDERIVED FROMANYOF THEFOREGOING(COLLECTIVELY, "SUBSURFACERESOURCES")LOCATEDINOR

UNDERTHATCERTAINREALPROPERTYSTTUATEDINTHECOUNTYOF RIVERSIDE,STATEOF CALIFORNIADESCRIBEDIN EXHIBIT"A"ATTACHEDHERETOANDINCORPORATEDHEREIN (THE"PROPERTY"),TOTHEEXTENTSUCHSUBSURFACERESOURCESHAVENOTBEEN PREVIOUSLYRESERVED; AND
B.THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,

STOREANDREMOVEANYOFTHESUBSURFACERESOURCESONOR FROMTHEPROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTOWHIPSTOCKORDIRECTIONALLYDRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAETSINTO,

A THROUGHORGACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO BOTTOMSUCH

WHIPSTOCKED-ORDIRECTIONALLY DRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR — BEYOND=THEEXTERIORLIMITSOFTHEPROPERTY, ANDTO REDRILL,RETUNNEL, EQUIP, MAINTAIN,’REPAIR, DEEPENANDOPERATEANYSUCHWELLSORMINES,BUTWITHOUTHE

RIGHTTO DRILL,MINE,EXPLORE, OPERATE,PRODUCE, STOREORREMOVEANYOFTHE E SUBSURFACERESOURCESTHROUGHORINTHESURFACEOFTHE PROPERTYORTHEUPPER " E I FIVEHUNDRED(500) FEETOFTHESUBSURFACEOFTHEPROPERTY.)
PARCELNO. 6:

I A =rHAT=PORTIONOF=THEEAST1/:OFSECTION29, TOWNSHIP2 SOUTH,RANGE4EAST,SAN I
— = 15 Pi
??
?

BERNARDINOBASEANDMERIDIAN, STATEOFCALIFORNIA, ACCORDINGTO THEOFFICIAL GOVERNMENTPLATTHEREOF. A
“COMMENCING AT THESOUTHEASTCORNEROF SAIDSECTION29; THENCEWESTERLYALONG P ‘P EEETHEESOUTHERLY BOUNDARYOFSAIDSECTION29, A DISTANCEOF 528 FEETTOTHETRUE POINTOF BEGINNING; THENCECONTINUINGWESTERLYALONGTHESAIDSOUTHERLY I — 1BOUNDARYOF’SAID SECTION29, A DISTANCEOF528 FEET;THENCENORTHERLYAND 7 V ' PARALLELWITHTHEEASTERLYBOUNDARYOFSAIDSECTION29, ADISTANCEOF 2640 FEET; *
~ THENCEEASTERLYIANDPARALLELWITHTHESOUTHERLYBOUNDARYOF SAIDSECTION29, A DISTANCEOF,528f FEET;THENCESOUTHERLYANDPARALLELWITHTHEEASTERLYBOUNDARY OF SAIDSECTION‘29,’A DISTANCEOF 2640 FEETTOTHETRUEPOINTOFBEGINNING.

T ALSOEXCEPTINGTHEREFROM ALLTHATINTERESTCONVEYEDTO DRHENERGY,INC.,A COLORADOCORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2006,ASINSTRUMENT _;NO.—2006-0756951POFOFFICIALRECORDSOFSAIDCOUNTY.SAIDINTERESTIS FURTHER DESCRIBEDAS FOLLOWS: I
A A
f A.ANYANDALL(I)OIL RIGHTS,(II) MINERALRIGHTS,(III) NATURALGASGRIGHTS, (IV) RIGHTST0 ALLOTHERHYDROCARBONSBYWHATSOEVERNAMEKNOWN,(V)GEOTHERMAL A
I
I
E ”HEAT*RIGHTSORGEOTHERMALSUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY, — (VI)WATERRIGHTSANDCLAIMSOR RIGHTSTOWATERAND(VII)ALLPRODUCTSDERIVED I FROMANYTOFTHEFOREGOING(COLLECTIVELY, "SUBSURFACERESOURCES")LOCATEDINOR I UNDERTHATCERTAINREALPROPERTYSITUATEDINTHECOUNTYOFRIVERSIDE,STATEOF CALIFORNIADESCRIBEDINEXHIBIT"A"ATTACHEDHERETOANDINCORPORATEDHEREIN (THE"PROPERTY"),TO THEEXTENTSUCHSUBSURFACERESOURCESHAVENOTBEEN PREVIOUSLYRESERVED;AND
B.THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,

STOREANDREMOVEANYOFTHESUBSURFACERESOURCESONOR FROMTHEPROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTO WHIPSTOCKOR DIRECTIONALLYDRILLAND 347/020269-0040
1036916.07a08/07/23 "8'
Item Number: 2.

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,

THROUGHOR ACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO BOTTOMSUCH

WHIPSTOCKEDORDIRECTIONALLYDRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHEEXTERIORLIMITSOF THE PROPERTY,ANDTO REDRILL,RETUNNEL, EQUIP,

MAINTAIN,REPAIR,DEEPENANDOPERATEANYSUCHWELLSORMINES,BUTWITHOUTTHE

RIGHTTO DRILL,MINE,EXPLORE,OPERATE,PRODUCE,STOREORREMOVEANYOFTHE

SUBSURFACE-RESOURCES THROUGHORINTHESURFACEOFTHEPROPERTYORTHEUPPER FIVEHUNDRED(500) FEETOFTHESUBSURFACEOFTHEPROPERTY.)
PARCEL7: (APN'S:667-080-006;667-100-029,031 AND038; 667-120-051,052 AND024)‘ TENTATIVE(TRACT)MAP32030-6,BEINGASUBDIVISIONOFTHEFOLLOWINGDESCRIBED PROPERTY:

PARCELNO. 1:

THESOUTH1/2OFTHENORTHWESTV4OFSECTION28,TOWNSHIP2 SOUTH,RANGE4 EAST, 7SANBERNARDINOBASEANDMERIDIAN, STATEOF CALIFORNIA, ACCORDINGTO THE OFFICIALGOVERNMENTPLATTHEREOF.
4-ALSOEXCEPTINGTHEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC.,A COLORADOCORPORATION3-BY DOCUMENTRECORDEDOCTOBER13, 2006,ASINSTRUMENT "——PNO.=-2006-0756951I-OFOFFICIAL RECORDSOF SAIDCOUNTY.SAIDINTERESTIS FURTHER DESCRIBEDAS FOLLOWS:

A.ANYANDALL(I) OILRIGHTS,(II) MINERALRIGHTS,(III) NATURALGASRIGHTS,(IV) » RIGHTSTOIALLOTHERHYDROCARBONSBYWHATSOEVERNAMEKNOWN,(V) GEOTHERMAL

HEAT-RIGHTSORGEOTHERMALSUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY, —
_ _(VI)WATERRIGHTSANDCLAIMSOR RIGHTSTOWATERAND(VII)ALLPRODUCTSDERIVED A FROMANYOF THEFOREGOING(COLLECTIVELY, "SUBSURFACERSOURCES")LOCATEDINOR

UNDERITHATCERTAIN REALPROPERTYSITUATEDINTHECOUNTYOFRIVERSIDE,,STATEOF st - CALIFORNIAPDESCRIBEDIN EXHIBIT"A"ATTACHEDHERETOANDINCORPORATEDHEREIN ” ‘(THE -''PROPERTY''),TOTHEEXTENTSUCHSUBSURFACERESOURCESHAVENOTBEEN PREVIOUSLYRESERVED,‘ AND
~ B.”-"THE-IPERPETUAL RIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,

STOREANDREMOVEANYOFTHESUBSURFACERESOURCES ONORFROMTHEPROPERTY, —— INCLUDINGWITHOUTLIMITATIONTHERIGHTTO WHIPSTOCKOR DIRECTIONALLYDRILLAND

I MINE,FROMLANDSOTHERTHANTHEPROPERTY, WELLS,TUNNELSANDISHAFTS INTO,

THROUGHORACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO BOTTOMSUCH

WHIPSTOCKEDOR DIRECTIONALLYDRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR ‘BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY, ANDTO REDRILL, RETUNNEL, EQUIP, MAINT’AIN,‘REPAIR, DEEPENANDOPERATEANYSUCHWELLSOR MINES,BUTWITHOUTTHE . RIGHTWTODRILL,MINE,EXPLORE,OPERATE,PRODUCE,STOREOR REMOVEANYOFTHE SUBSURFACE’ RESOURCESTHROUGHORIN THESURFACEOFTHEPROPERTYORTHEUPPER FIVEHUNDRED(500) FEETOFTHESUBSURFACEOFTHEPROPERTY.)
PARCELNO.2:

THESOUTHWEST‘/4OFSECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST,SANBERNARDINO

BASEANDMERIDIAN, STATEOFCALIFORNIA, ACCORDINGTO THEOFFICIALGOVERNMENT PLATTHEREOF.
347/020269~0040
1036916.072108/07/23 '9'
Item Number: 2.

EXCEPTINGTHEREFROMTHEEAST‘/2OFTHESOUTHWEST‘/4.

ALSOEXCEPTINGTHEREFROMTHE EAST‘/2OFTHENORTHEAST‘AOFTHENORTHWEST‘/4 OFTHESOUTHWEST‘/4OF SAIDSECTION.

ALSOEXCEPTINGTHEREFROMTHESOUTHERLY40 FEETCONVEYEDTO THECOUNTYOF RIVERSIDEBYDEEDFILEDFORRECORDJULY26, 1949 ASINSTRUMENTNO.3081 OF OFFICIALRECORDSOF RIVERSIDECOUNTY,CALIFORNIA.

EXCEPTINGTHEREFROMANYPORTIONLYINGWITHINTRACT32030-1ASSHOWNONFILEIN BOOK404 PAGES67 THROUGH75 OF MAPS,RECORDSOFRIVERSIDECOUNTY,CALIFORNIA.

ALSOEXCEPTINGTHEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC.,A COLORADOCORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2006, ASINSTRUMENT NO.A2006-0756951’OFOFFICIALRECORDSOFSAIDCOUNTY.SAIDINTERESTIS FURTHER DESCRIBEDAS FOLLOWS:

A.‘ANYANDALL(I) OILPRIGHTS, (II) MINERALRIGHTS,(III) NATURALGASRIGHTS,(IV)

RIGHTSTOALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(V)GEOTHERMAL 0 1 HEATRIGHTSTORGEOTHERMAL SUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY, (VI) WATERRIGHTSANDISCLAIMS ORRIGHTSTOWATERAND(VII) ALLPRODUCTSDERIVED " FROMANYOF,THEfFOREGOING (COLLECTIVELY, "SUBSURFACERESOURCES")LOCATEDIN OR ‘* ‘F UNDERTHATCERTAINREAEPROPERTYSITUATEDIN THECOUNTYOFRIVERSIDE,STATEOF CALIFORNIA DESCRIBED INEXHIBIT"A"ATTACHEDHERETOANDINCORPORATEDHEREIN (THE"PROPERTY"),B’TOTHEEXTENTSUCHSUBSURFACERESOURCESHAVENOTBEEN PREVIOUSLYRESERVED;AND
” B.'THEPERPETUAL‘ RIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,’ ’ STOREAND’REMOVEANYOFTHESUBSURFACE RESOURCESONORFROMTHEPROPERTY, ‘INCLUDING’ WITHOUTFLIMIT/ATION THERIGHTPTOWHIPSTOCKORDIRECTIONALLYDRILLAND — MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAI-'|'S INTO, ’ 7 ‘THROUGHORACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO BOTTOMSUCH ’ —

IWHIPSTOCKEDORDIRECTIONALLYEDRILLED WELLS,TUNNELSANDSHAFFSWITHINOR

BEYONDTHE EXTERIORTLIMITS OF THEPROPERTY, ANDTO REDRILL, RETUNNEL, EQUIP, MAINTAIN,REPAIR;DEEPENANDOPERATEANYSUCHWELLSORMINES,BUTWITHOUTTHE

RIGHTTO DRILL,MINE,EXPLORE,OPERATE,PRODUCE,STOREOR REMOVEANYOFTHE F SUBSURFACERESOURCESTHROUGHOR IN THESURFACEOFTHEPROPERTYORTHEUPPER FIVEHUNDRED(500) FEETOFTHESUBSURFACEOFTHEPROPERTY.)
PARCELNO.3:

THEEAST‘/2 OFTHESOUTHWEST‘A,ANDTHEEAST‘/2OF THENORTHEAST‘AOFTHE '—"NORTHWEST”‘/47 OFTHESOUTHWEST‘/4OF SECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST, SANBERNARDINOBASEANDMERIDIAN,STATEOFCALIFORNIA,ACCORDINGTO THE A - OFFICIALGOVERNMENTPLATTHEREOF. I I ’
EXCEPTINGTHEREFROMTHESOUTHERLY40 FEETASCONVEYEDTOTHECOUNTYOF RIVERSIDE,BYDEEDRECORDEDJULY26, 1949 ASINSTRUMENTNO.3081 OF OFFICIAL RECORDSOF RIVERSIDECOUNTY,CALIFORNIA.

EXCEPTINGTHEREFROMANYPORTIONLYINGWITHINTRACT32030-1AS SHOWNONFILEIN BOOK404 PAGES67 THROUGH75 OF MAPS,RECORDSOF RIVERSIDECOUNTY,CALIFORNIA. 347/020269-0040
1036916.072108/07/23 -10-
Item Number: 2.

ALSOEXCEPTINGTHEREFROMANYPORTIONLYINGWITHINTRACT32030-3 ASSHOWNON FILEINBOOK419 PAGES29 THROUGH39 OF MAPS,RECORDSOFRIVERSIDECOUNTY, CALIFORNIA.

ALSOEXCEPTINGTHEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC.,A COLORADOCORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2006,ASINSTRUMENT NO.2006-0756951OFOFFICIALRECORDSOF SAIDCOUNTY.SAIDINTERESTIS FURTHER DESCRIBEDAS FOLLOWS:

A.ANYANDALL(I) OILRIGHTS,(II) MINERALRIGHTS,(III) NATURALGASRIGHTS,(IV)

RIGHTSTO ALLOTHERHYDROCARBONSBYWHATSOEVERNAMEKNOWN,(V)GEOTHERMAL

HEATRIGHTSORGEOTHERMALSUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY, (VI) WATERRIGHTSANDCLAIMSOR RIGHTSTOWATERAND(VII)ALLPRODUCTSDERIVED FROMANYOFTHEFOREGOING(COLLECTIVELY, "SUBSURFACE RESOURCES")LOCATEDIN OR

UNDERTHATCERTAINREALPROPERTYSITUATEDINTHECOUNTYOFRIVERSIDE, STATEOF CALIFORNIADESCRIBEDIN EXHIBIT"A"ATTACHEDHERETOANDINCORPORATEDHEREIN (THE"PROPERTY"),TO THEEXTENTSUCHSUBSURFACERESOURCESHAVENOTBEEN PREVIOUSLYRESERVED;AND 7
I B. THEPERPETUAL RIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE, ‘STOREANDREMOVEANYOFTHESUBSURFACERESOURCESONORFROMTHEPROPERTY, 2 ’ ‘i INCLUDINGWITHDUTJLIMITATTON THERIGHTTO WHIPSTOCKORDIRECTIONALLY DRILLAND 7T75MINE,4FROM,LANDS OTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO, 2 THROUGHORACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO BOTTOMSUCH * WHIPSTOCKEDOR DIRECTIONALLYDRILLEDWELLS,TUNNELSANDSHAWSWITHINOR ~ BEYOND—THE EXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL,RETUNNEL, EQUIP,

MAINTAIN,REPAIR,DEEPENANDOPERATEANYSUCHWELLSORMINES,BUTWITHOUTHE — H7— RIGHTTOIDRILL, MINE,EXPLORE,OPERATE,PRODUCE,STOREORREMOVEANYOFTHE A _‘HSUBSURFAJCEIRESOURCES THROUGHOR INTHESURFACEOFTHEPROPERTYORTHEUPPER IPFIVEVHUNDRED (S00) FEETOFTHESUBSURFACEOFTHEPROPERTY.) T
—
PARCELNO.4:
2 THATPORTIONIOE THEEAST1/; OFSECTION29, TOWNSHIP2 SOUTH,RANGE 3 EAST, SAN

LBERNARDINOBASEANDMERIDIAN,STATEOFCALIFORNIA, ACCORDINGTO THEOFFICIAL GOVERNMENTPLATTHEREOF.

COMMENCINGATTHESOUTHEASTCORNEROFSAIDSECTION29; THENCENORTHERLY ALONGTHEEASTERLY BOUNDARYOFSAIDSECTION29, ADISTANCEOF 1483 FEETTO THE TRUEPOINTOFBEGINNING;THENCEWESTERLYANDPARALLELWITHTHESOUTHERLY TBOUNDARYCOF5 SAIDSECTION29, A DISTANCEOF 528 FEET;THENCENORTHERLYAND PARALLELWITHTHEEASTERLYBOUNDARYOFSAIDSECTION29, A DISTANCEOF 577 FEET; I — ~—THENCEEASTERLYHLAND PARALLELWITHTHESOUTHERLYBOUNDARYOF SAIDSECTION29, A A —l5IST'_AI\j_CE OF.528’FEI:‘I' TOTHEEASTERLYBOUNDARYor SAIDSECTION29; THENCE SOUTHERLYALONGTHEEASTERLYBOUNDARYOFSAIDSECTION29, ADISTANCEOF 577 FEETTO THETRUEPOINTOFBEGINNING.

ALSOEXCEPTINGTHEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC., A COLORADOCORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2006,AS INSTRUMENT NO.2006-0756951 OF OFFICIALRECORDSOF SAIDCOUNTY.SAIDINTERESTIS FURTHER DESCRIBEDAS FOLLOWS:

A.ANYANDALL(I) OILRIGHTS,(II) MINERALRIGHTS,(III) NATURALGASRIGHTS,(IV) 347/020269-0040
1036916.07a08/07/23 ‘I I"
Item Number: 2.

RIGHTSTo ALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(v) GEOTHERMAL

HEATRIGHTSORGEOTHERMALSUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY, (VI)WATERRIGHTSANDCLAIMSORRIGHTSTO WATERAND(VII)ALLPRODUCTSDERIVED FROMANYOFTHEFOREGOING(COLLECTIYELY, "SUBSURFACERESOURCES")LOCATEDINOR

UNDERTHATCERTAINREALPROPERTYSITUATEDINTHECOUNTYOFRIVERSIDE, STATEOF CALIFORNIADESCRIBEDIN EXHIBIT"A"ATTACHEDHERETOANDINCORPORATEDHEREIN (THE"PROPERTY"),TOTHEEXTENTSUCHSUBSURFACERESOURCESHAVENOTBEEN PREVIOUSLYRESERVED;AND
B.THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,

STOREANDREMOVEANYOFTHESUBSURFACERESOURCESONORFROMTHEPROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTOWHIPSTOCKOR DIRECTIONALLYDRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,

FTHROUGHORACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO BOTTOMSUCH A WHIPSTOCKEDOR DIRECTIONALLYDRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL,RETUNNEL, EQUIP, MAINTAIN,’REPAIR, DEEPENANDOPERATEANYSUCHWELLSOR MINES,BUTWITHOUTTHE

RIGHTTO DRILL,MINE,EXPLORE,OPERATE,PRODUCE,STOREOR REMOVEANYOFTHE "SUBSURFACERESOURCESTHROUGHORIN THESURFACEOFTHEPROPERTYORTHE UPPER ’ FIVEHUNDRED(500) FEETOFTHESUBSURFACEOFTHEPROPERTY.)
PARCELNO.5:

I THATPORTION OFTHEEAST‘/2OFSECTION29, TOWNSHIP2 SOUTH,RANGE4 EAST,SAN

BERNARDINOBASEANDMERIDIAN, STATEOFCALIFORNIA, ACCORDINGTO THEOFFICIAL GOVERNMENTPLATTHEREOF.

I ‘S COMMENCING’ ATTHESOUTHEASTCORNEROF SAIDSECTION29; THENCEWESTERLYALONG I f 7 7 . THESOUTHERLYBOUNDARYOFSAIDSECTION29, A DISTANCEOF528 FEETTO THETRUE A POINTOFBEGINNING;THENCECONTINUINGWESTERLYALONGTHESAIDSOUTHERLY BOUNDARYOFISAIDSECTION29, A DISTANCEOF 528 FEET;THENCENORTHERLYAND PARALLELWITHTHEEAST-ERLYBOUNDARYOF SAIDSECTION29, A DISTANCEOF 2640 FEET; THENCEEASTERLYANDPARALLELWITHTHESOUTHERLYBOUNDARYOFSAIDSECTION29, A T
A
I DISTANCEOF 528 FEET;i'|' HENCESOUTHERLYANDPARALLELWITHTHEEASTERLYBOUNDARY F”FF*:=OFFFsAIDSECTION29,~ADISTANCEOF 2640 FEETTOTHETRUEPOINTOFBEGINNING. ’
I
’
I ALSOEXCEPTINGTHEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC.,A , (COLORADO CORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2006,ASINSTRUMENT NO.2006-0756951OFOFFICIALRECORDSOFSAIDCOUNTY.SAIDINTERESTIS FURTHER DESCRIBEDAS FOLLOWS:

A.ANYANDALL(I) OIL RIGHTS,(II) MINERALRIGHTS,(III) NATURALGASRIGHTS,(IV) E I ”
S’ ’RIGHTS"TO’ALLOTHERSSFHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(V)GEOTHERMAL ?HEATRIGHTSIORGEOTHERMALSUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY, "T 7 (VI) WATERRIGHTSBANDFCLAIMS ORRIGHTSTO WATERAND(VII)ALLPRODUCTSDERIVED FROMANYOFTHEFOREGOING(COLLECTIVELY, "SUBSURFACERESOURCES")LOCATEDIN OR

UNDERTHATCERTAINREALPROPERTYSITUATEDINTHECOUNTYOF RIVERSIDE,STATEOF CALIFORNIADESCRIBEDIN EXHIBIT"A"ATTACHEDHERETOANDINCORPORATEDHEREIN (THE"PROPERTY"),TO THEEXTENTSUCHSUBSURFACERESOURCESHAVENOTBEEN PREVIOUSLYRESERVED;AND
B.THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,

STOREANDREMOVEANYOFTHESUBSURFACERESOURCESONOR FROMTHEPROPERTY, 347/020269~0040
1036916.072108/07/23 -12-
Item Number: 2.

INCLUDINGWITHOUTLIMITATIONTHERIGHTTOWHIPSTOCKORDIRECFIONALLYDRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,

THROUGHORACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO BOTTOMSUCH

WHIPSTOCKEDORDIRECTIONALLYDRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL,RETUNNEL, EQUIP,

MAINTAIN,REPAIR,DEEPENANDOPERATEANYSUCHWELLSOR MINES,BUTWITHOUTTHE

RIGHTTO DRILL,MINE,EXPLORE, OPERATE,PRODUCE,STOREORREMOVEANYOFTHE

SUBSURFACERESOURCESTHROUGHORINTHESURFACEOFTHEPROPERTYORTHEUPPER FIVEHUNDRED(500) FEETOFTHESUBSURFACEOFTHEPROPERTY.)
PARCEL8: (APN'S:667-080~002THROUGH004 AND006)
TENTATIVE(TRACT)MAP32030-7,BEINGASUBDIVISIONOFTHEFOLLOWINGDESCRIBED PROPERTY:

PARCELNO.1
6 THATPORTIONOFTHENORTHWEST1/4OFTHENORTHWEST1/4OFSECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST,’SANBERNARDINOBASEANDMERIDIAN, STATEOFCALIFORNIA, ACCORDINGTO THEOFFICIALGOVERNMENTPLATTHEREOF.
—’~I
-— BEGINNINGATHEE-SOUTHEAST CORNEROFTHENORTHWEST‘/4OFTHENORTHWEST‘/4,OF _.—SAIDSEC—TIONP;‘fTHEN('iE WESTERLY, ONTHESOUTHLINEOF SAIDNORTHWEST‘/4OFTHE T I NORTHWEST‘/4980.5 FEET,TO THEEASTLINEOFTHATCERTAIN60 FOOTROADKNOWNAS 29 PALMSHIGHWAY;THENCENORTH23° 01' 13"EASTONTHENORTHLINEOF SAIDSECTION 390.71 FEETTO THENORTHEASTCORNEROFTHENORTHWEST‘/4OFTHENORTHWEST‘/4OF : SAIDSECTION,'?THENCE SOUTH0° 09' 30" EAST,ONTHEEASTLINEOFTHESAID NORTHWESTI/4’OF.THE—NORTHWEST ‘/4OFSAIDSECTION,1380.18FEET,TOTHEPOINTOF BEGINNING.

EXCEPTINGTHEREFROMONEHALFOFALLOIL,GASANDOTHERHYDROCARBONSUBSTANCES I UNDERLYINGSAID’LANDAND‘/2OFALLOTHERMINERALS,ASRESERVEDIN DEEDFROM » JOSEPHR.TROTTER,HUSBANDANDWIFEFILEDFORRECORDMARCH30, 1955ASBOOK1715 PAGE572 OFOFFICIALRECORDSOFSAIDCOUNTY.
— SAIDAPROPERTYIS ALSOSHOWNASPARCEL2, 3 AND4 ONRECORDOFSURVEYONFILEIN BOOK27 PAGE65 OF RECORDSOF SURVEY,RECORDSOFRIVERSIDECOUNTY,CALIFORNIA.

ALSOEXCEPTINGTHEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC.,A ” COLORADOCORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2006, ASINSTRUMENT NO.2006-0756951OFOFFICIALRECORDSOF SAIDCOUNTY.SAIDINTERESTIS FURTHER DESCRIBEDAS FOLLOWS:

L A A.ANYANDALL(I) OILRIGHTS,(II) MINERALRIGHTS,(III) NATURALGASRIGHTS,(IV) _ 6 ’
I RIGHTSTO ALI:OTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(V)GEOTHERMAL

HEATRIGHTSOR GEOTHERMALSUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY, (VI) WATERRIGHTSANDCLAIMSORRIGHTSTO WATERAND(VII)ALLPRODUCTSDERIVED FROMANYOF THEFOREGOING(COLLECTIVELY,"SUBSURFACERESOURCES")LOCATEDINOR

UNDERTHATCERTAINREALPROPERTYSITUATEDINTHECOUNTYOF RIVERSIDE,STATEOF CALIFORNIADESCRIBEDIN EXHIBIT"A"ATTACHEDHERETOANDINCORPORATEDHEREIN (THE"PROPERTY"),TOTHEEXTENTSUCHSUBSURFACERESOURCESHAVENOTBEEN PREVIOUSLYRESERVED;AND
347/020269-0040
103691607 2108/07/23 '13‘
Item Number: 2.

B.THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,

STOREANDREMOVEANYOFTHESUBSURFACERESOURCESONOR FROMTHEPROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTOWHIPSTOCKOR DIRECTIONALLYDRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO, THROUGHOR ACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO BOTTOMSUCH. WHIPSTOCKEDORDIRECTIONALLYDRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL, RETUNNEL, EQUIP,

MAINTAIN, REPAIR,DEEPENANDOPERATEANYSUCHWELLSOR MINES,BUTWITHOUTTHE

RIGHTTO DRILL,MINE,EXPLORE,OPERATE,PRODUCE, STOREOR REMOVEANYOFTHE

SUBSURFACERESOURCESTHROUGHOR INTHESURFACEOFTHEPROPERTYORTHEUPPER FIVEHUNDRED(500) FEETOFTHESUBSURFACEOFTHEPROPERTY.)
PARCELNO. 2
THESOUTH‘/2OFTHENORTHWESTM1OF SECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST,

SANBERNARDINOBASEANDMERIDIAN, STATEOFCALIFORNIA,CCORDINGTO THE OFFICIALGOVERNMENTPLATTHEREOF.

I ALSOEXCEPTINGTHEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY, INC.,A COLORADOCORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2006,AS INSTRUMENT NO.2006-0756951~OF-OFFICIALRECORDSOFSAIDCOUNTY.SAIDINTERESTIS FURTHER DESCRIBEDAS FOLLOWS:

A.ANYANDALL(I) oILRIGHTs, (II) MINERALRIGHTS,(III) NATURALGASRIGHTS,(IV) RIGHTSTOALLOTHERHYDROCARBONS avWHATSOEVERNAMEKNOWN,(v) GEOTHERMAL * HEATRIGHTSORGEOTHERMAL SUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY, ’ (VI)WATERRIGHTSANDCLAIMSORRIGHTST0 WATERAND(VII) ALLPRODUCTSDERIVED A FROMANYOF:THEFOREGOING(COLLECTIVELY, "SUBSURFACERESOURCES")LOCATEDINOR A i UNDERTHATCERTAINREALPROPERTYSITUATEDINTHECOUNTYOF RIVERSIDE,STATEAOF CALIFORNIADESCRIBEDTNI EXHIBIT"A"ATTACHEDHERETOANDINCORPORATEDHEREIN (THE"PROPERTY"),"TOTHEEXTENTSUCHSUBSURFACERESOURCESHAVENOTBEEN PREVIOUSLYRESERVED; AND
‘E BTTHEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE, *ST0RE5ANDREMOVEANYOFTHESUBSURFACERESOURCESONOR FROMTHEPROPERTY, ‘
— INCLUDINGWITHOUTLIMITATIONTHERIGHTTO WHIPSTOCKOR DIRECTIONALLYDRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,

THROUGHORACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO BOTTOMSUCH

WHIPSTOCKEDORE DIRECTIONALLYDRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR ’ BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL,RETUNNEL, EQUIP,

MAINTAIN, REPAIR,DEEPENANDOPERATEANYSUCHWELLSORMINES,BUTWITHOUTTHE

RIGHTTO DRILL,MINE,EXPLORE,OPERATE,PRODUCE,STOREORREMOVEANYOFTHE ’
’ SUBSURFACERESOURCESTTHROUGH ORINTHESURFACEOFTHEPROPERTYORTHEUPPER _;,FIVE HUNDRED(500) FEETOFTHESUBSURFACEOFTHEPROPERTY.) PARCEL9: (APN'S:667~080-006AND007)
TENTATIVE(TRACT)MAP32030~8,BEINGA SUBDIVISIONOFTHEFOLLOWINGDESCRIBED PROPERTY:

PARCELNO.1
THENORTHEAST‘A OFTHE NORTHWEST‘/4ANDTHENORTH‘/2OF THENORTHEAST‘/4OF 347/020269-0040
1036916.072108/07/23 -14-
Item Number: 2.

SECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST,SANBERNARDINOBASEANDMERIDIAN, STATE OFCALIFORNIA, ACCORDINGTO THEOFFICIALGOVERNMENTPLATTHEREOF.

EXCEPTINGTHEREFROMANYPORTIONLYINGWITHINTRACT32030-10ASSHOWNONFILEIN BOOK419 PAGES40 THROUGH47 OFMAPS,RECORDSOFRIVERSIDECOUNTY,CALIFORNIA.

ALSOEXCEPTINGTHEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC.,A COLORADOCORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2006,ASINSTRUMENT NO.2006-0756951 OFOFFICIALRECORDSOFSAIDCOUNTY.SAIDINTERESTIS FURTHER DESCRIBEDASFOLLOWS:

A.ANYANDALL(I) OILRIGHTS,(II) MINERALRIGHTS,(III) NATURALGASRIGHTS,(IV)

RIGHTSTO ALLOTHERHYDROCARBONSBYWHATSOEVERNAMEKNOWN,(V)GEOTHERMAL

HEATRIGHTSORGEOTHERMALSUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY, - — (VI)WATERRIGHTSANDCLAIMSOR RIGHTSTOWATERAND(VII)ALLPRODUCTSDERIVED I FROMIANYIOFTHEFOREGOING(COLLECTIVELY, "SUBSURFACERESOURCES")LOCATEDIN OR

UNDERTHATCERTAINREALIPROPERTYSITUATEDINTHECOUNTYOFRIVERSIDE,STATEOF -ACALIFORNIAADESCRIBED INEXHIBIT"A"ATTACHEDHERETOANDINCORPORATEDHEREIN (THE-"PROPERTY"), TOTHEEXTENTSUCHSUBSURFACERESOURCESHAVENOTBEEN PREVIOUSLYRESERVED;AND
- -7B.—THE.PERPEl'UAL-‘RIGHT TO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE, I PSTOREZANDREMOVE‘7ANY OFTHESUBSURFACERESOURCESONORFROMTHEPROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTO WHIPSTOCKOR DIRECTIONALLYDRILLAND IMINE,~FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,

THROUGHORACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO BOTTOMSUCH

WHIPSTOCKEDOR DIRECTIONALLYDRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR ~ -
A
- T BEYONDTHE EXTERIORPLIMITS OFTHEPROPERTY,ANDTO REDRILL,RETUNNEL, EQUIP,

T MAINTAIN, REPAIR,DEEPENAIAND OPERATEANYSUCHWELLSOR MINES,BUTWITHOUTTHE RIGHTTODRILL,‘MINE;.EXPLORE, OPERATE,PRODUCE,STOREORREMOVEANYOFTHE

A SUBSURFACERESOURCESTHROUGHORINTHESURFACEOFTHEPROPERTYORTHEUPPER —— ~ FIVEHUNDRED(500) FEETOFTHESUBSURFACEOFTHEPROPERTY.) PARCELNO.2:

THESOUTH‘/2OFTHENORTHWEST‘/4OFSECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST,

SANBERNARDINOBASEANDMERIDIAN, STATEOF CALIFORNIA, ACCORDINGTO THE OFFICIALGOVERNMENTPLATTHEREOF.

I ALSOEXCEPTINGTHEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC.,A COLORADOCORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2006,ASINSTRUMENT NO.2006-0756951 OFOFFICIALRECORDSOF SAIDCOUNTYSAIDINTERESTIS FURTHER DESCRIBEDAS FOLLOWS: ’
’ A.ANYANDIALL(I) OIL‘RIGHTS,(II) MINERALRIGHTS,(III) NATURALGASRIGHTS,(IV)

RIGHTSTO ALLOTHERHYDROCARBONSBYWHATSOEVERNAMEKNOWN,(V)GEOTHERMAL

HEATRIGHTSOR GEOTHERMALSUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY, (VI) WATERRIGHTSANDCLAIMSOR RIGHTSTO WATERAND(VII) ALLPRODUCTSDERIVED FROMANYOF THE FOREGOING(COLLECTIVELY, "SUBSURFACERESOURCES")LOCATEDINOR

UNDERTHATCERTAINREALPROPERTYSITUATEDINTHECOUNTYOF RIVERSIDE,STATEOF CALIFORNIADESCRIBEDIN EXHIBIT"A"ATTACHEDHERETOANDINCORPORATEDHEREIN (THE"PROPERTY"),TO THEEXTENTSUCHSUBSURFACERESOURCESHAVENOTBEEN PREVIOUSLYRESERVED;AND
347/020259-0040
1036916.07a08/07/23 -15-
Item Number: 2.

B. THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,

STOREANDREMOVEANYOFTHE SUBSURFACERESOURCESONORFROMTHEPROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTO WHIPSTOCKOR DIRECTIONALLYDRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,

THROUGHORACROSSTHESUBSURFACEOF THEPROPERTY,ANDTO BOTTOMTSUCH

WHIPSTOCKEDCOR DIRECTIONALLYDRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL,RETUNNEL, EQUIP,

MAINTAIN, REPAIR,DEEPENANDOPERATEANYSUCHWELLSORMINES,BUTWITHOUTTHE "RIGHTTO DRILL,’MINE,EXPLORE, OPERATE,PRODUCE,STOREORREMOVEANYOFTHE

SUBSURFACERESOURCESTHROUGHOR INTHESURFACEOFTHEPROPERTYORTHEUPPER FIVEHUNDRED(500) FEETOFTHESUBSURFACEOFTHEPROPERTY.)
PARCEL10: (APN'S:667-080-002THROUGH004, 006 AND007)
TENTATIVE(TRACT)MAP32030-9,BEINGASUBDIVISIONOFTHEFOLLOWINGDESCRIBED PROPERTY:

PARCELN0. 1
- THATPORTIONOFCTHENORTHWEST‘/4OFTHENORTHWEST‘/4OF SECTION28, TOWNSHIP2 SOUTH,-'RANGE—4 EASTf'SANBERNARDINOBASEANDMERIDIAN,STATEOF CALIFORNIA, ACCORDINGTO THEOFFICIALGOVERNMENTPLATTHEREOF.

BEGINNINGATTHESOUTHEAST CORNEROFTHENORTHWEST‘/4OFTHENORTHWESTM1,OF SAIDSECTION;THENCEWESTERLY, ONTHESOUTHLINEOF SAIDNORTHWEST‘AOFTHE - NORTHWEST‘/4980.5 FEET,TOTHEEASTLINEOFTHATCERTAIN60 FOOTROADKNOWNAS 29 PALMSHIGHWAY;THENCENORTH23° 01' 13" EASTONTHENORTHLINEOF SAIDSECTION ‘*3 C390.71‘FEETTOTHENORTHEASTCORNEROFTHENORTHWEST‘AOFTHE NORTHWESTV4OF B SAIDSECTION; THENCESOUTH0° 09' -30"EAST,ONTHEEASTLINEOFTHESAID 27I -NORTHWEST1/4OFTHENORTHWESTI/4OFSAIDsecnom,1380.18FEET,TO THEPOINTOF BEGINNING.

EXCEPTINGTHEREFROMOEONEIHALF OFALOIL,GASANDOTHERHYDROCARBONSUBSTANCES ” UNDERLYINGSAIDLANDAND‘/2OFALLOTHERMINERALS, ASRESERVEDINDEEDFROM 7’ JOSEPHIR.TROTTER,HUSBANDANDWIFEFILEDFORRECORDMARCH30, 1955 ASBOOK1715 PAGE572 OF OFFICIALRECORDSOFSAIDCOUNTY.

I ALSOEXCEPTINGTHEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC.,A COLORADOCORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2006, AS INSTRUMENT NO.C2006-0756951’O’F OFICIALRECORDSOF SAIDCOUNTY.SAIDINTERESTIS FURTHER DESCRIBEDAS FOLLOWS: 7 ANYCAND ALL”(I)OILRIGHTS,(II) MINERALRIGHTS,(III) NATURALGASRIGHTS,(IV) - =-*RIGHTS*TOALL-OTHER‘ HYDROCARBONSBYWHATSOEVERNAMEKNOWN,(V)GEOTHERMAL 7’ ’ *2HEATIRIGHTSWORIGEOTHERMAL SUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY, (VI) WATERRIGHTSANDCLAIMSORRIGHTSTO WATERAND(VII)ALLPRODUCTSDERIVED FROMANYOFTHEFOREGOING(COLLECTIVELY, "SUBSURFACERESOURCES")LOCATEDINOR

UNDERTHATCERTAINREALPROPERTYSITUATEDINTHECOUNTYOF RIVERSIDE,STATEOF CALIFORNIADESCRIBEDCINEXHIBIT"A"ATTACHEDHERETOANDINCORPORATEDHEREIN (THE "PROPERTY"),TO THEEXTENTSUCHSUBSURFACERESOURCESHAVENOTBEEN PREVIOUSLYRESERVED;AND
347/020269-0040
1036916.07aos/07/23 -16-
Item Number: 2.

B.THEPERPEFUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,

STOREANDREMOVEANYOFTHESUBSURFACERESOURCESONORFROMTHEPROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTO WHIPSTOCKOR DIRECTIONALLYDRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFFSINTO,

THROUGHORACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO BOTTOMSUCH

WHIPSTOCKEDORDIRECTIONALLYDRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL,RETUNNEL, EQUIP,

MAINTAIN,REPAIR,DEEPENANDOPERATEANYSUCHWELLSOR MINES,BUTWITHOUTTHE RIGHTTO DRILL,MINE,EXPLORE,OPERATE,PRODUCE,STOREOR REMOVEANYOFTHE 7 SUBSURFACERESOURCESTHROUGHOR INTHESURFACEOFTHEPROPERTYORTHEUPPER FIVEHUNDRED(500) FEETOFTHESUBSURFACEOFTHEPROPERTY.)
SAIDPROPERTYISALSOSHOWNASPARCEL2, 3 AND4 ONRECORDOF SURVEYONFILEIN BOOK27 PAGE65 OFRECORDSOF SURVEY,RECORDSOF RIVERSIDECOUNTY,CALIFORNIA.

PARCELNO. 2
THENORTHEAST1/4OFTHENORTHWEST‘/4ANDTHENORTH‘/2OFTHENORTHEAST‘/4OF SECTION28,—TO_WNSHIP—2 SOUTH,RANGE4 EAST,SANBERNARDINOBASEANDMERIDIAN, A
I STATEOFCALIFORNIA, ACCORDINGTO THEOFFICIALGOVERNMENTPLATTHEREOF.

D
A 1 EXCEPTING THEREFROM ANYPORTIONLYINGWITHINTRACT32030-10ASSHOWNONFILEIN I I, I
H z BOOK;4i9PAGES’401TH‘ROUGH 47 OF MAPS,RECORDSOF RIVERSIDECOUNTY,CALIFORNIA.

T _ ALSOEXCEPTINGTHEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC.,A I’ ’ COLORADOCORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2006,ASINSTRUMENT NO.2006~0756951OFOFFICIALRECORDSOF SAIDCOUNTY.SAIDINTERESTIS FURTHER DESCRIBEDAS FOLLOWS:

A.ANYANDALL(I)OILRIGHTS,(II) MINERALRIGHTS,(III) NATURALGASRIGHTS,(IV) , RIGHTSOHALLWQTHER HYDROCARBONS BYWHATSOEVERNAMEKNOWN, (V) GEOTHERMAL

A HEATRIGHTSOR GEOTHERMAL SUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY, _ (VI)WATERRIGHTSANDCLAIMSORRIGHTSTO WATERAND(VII)ALLPRODUCTSDERIVED, 7 FROMANYOFTHE FOREGOING (COLLECTIVELY, "SUBSURFACERESOURCES")LOCATEDIN OR

A UNDERTHATCERTAINREALPROPERTYSITUATEDINTHECOUNTYOF RIVERSIDE,STATEOF CALIFORNIADESCRIBEDIN EXHIBIT"A"ATTACHEDHERETOANDINCORPORATEDHEREIN (THE"PROPERTY"), TO THEEXTENTSUCHSUBSURFACERESOURCESHAVENOTBEEN PREVIOUSLYRESERVED;AND
A :,,B.,,THEPERPETUAL’ RIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE, ‘P STOREANDREMOVEANY OFTHESUBSURFACERESOURCESONOR FROMTHEPROPERTY, 0 * INCLUDINGWITHOUTLIMITATIONTHERIGHTTOWHIPSTOCKOR DIRECTIONALLYDRILLAND A MINE,~FROMLANDSOTHER THANTHEPROPERTY,WELLS,TUNNELSANDSHAFFSINTO, , THROUGHIQRjACRQSS,,]'HE SUBSURFACEOFTHEPROPERTY,ANDTO BOTTOMSUCH

A WHIPSTOCKEDORDIRECTIONALLY DRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL,RETUNNEL, EQUIP, MAINTAIN,REPAIR,DEEPENANDOPERATEANYSUCHWELLSORMINES,BUTwTrHOUTTHE

RIGHTTO DRILL,MINE,EXPLORE,OPERATE,PRODUCE,STOREORREMOVEANYOFTHE

SUBSURFACERESOURCESTHROUGHORINTHESURFACEOF THEPROPERTYORTHEUPPER FIVEHUNDRED(500) FEETOFTHESUBSURFACEOFTHEPROPERTY.)
PARCELNO.3
347/020269-0040
1036916.072108/07/23 -17-
Item Number: 2.

THESOUTH1/2OF THENORTHWEST‘/4OF SECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST,

SANBERNARDINOBASEANDMERIDIAN,STATEOF CALIFORNIA,ACCORDINGTO THE OFFICIALGOVERNMENTPLATTHEREOF.

ALSOEXCEPTINGTHEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC.,A COLORADOCORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2006, ASINSTRUMENT NO.2006-0756951OFOFFICIALRECORDSOFSAIDCOUNTY.SAIDINTERESTIS FURTHER DESCRIBEDAS FOLLOWS:

A.ANYANDALL(I) OIL RIGHTS,(II) MINERALRIGHTS,(III) NATURALGASRIGHTS,(IV)

RIGHTSTO ALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(V)GEOTHERMAL

HEATRIGHTSORGEOTHERMALSUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY, (VI)WATERRIGHTS ANDCLAIMSORRIGHTST0 WATERAND(VII)ALLPRODUCTSDERIVED FROMANYOFTHEFOREGOING(COLLECTIVELY, "SUBSURFACERESOURCES")LOCATEDINOR

UNDERTHATCERTAINREALPROPERTYSITUATEDINTHECOUNTYOF RIVERSIDE,STATEOF CALIFORNIADESCRIBEDINEXHIBIT"A"ATTACHEDHERETOANDINCORPORATEDHEREIN (THE"PROPERTY"),TOTHEEXTENTSUCHSUBSURFACERESOURCESHAVENOTBEEN PREVIOUSLYRESERVED;AND 7

T B,THEPERPETUAL RIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE, STOREANDREMOVEANYOFTHESUBSURFACERESOURCESomORFROMTHEPROPERTY, ~ "74 INCLUDING_WI:[IfIOUT;LIMITATION THERIGHTTOWHIPSTOCKORDIRECTIONALLY DRILLAND 1 TMINE,7SFROM LANDSOTHERTHANTHEPROPERTY, WELLS,TUNNELSANDSHAFTSINTO,

THROUGHORACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO BOTTOMSUCH

WHIPSTOCKED OR DIRECTIONALLY DRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHEPEXTERIOR LIMITSOFTHEPROPERTY,ANDTO REDRILL,RETUNNEL, EQUIP,

A MAINTAIN, REPAIR,DEEPENANDOPERATEANYSUCHWELLSORMINES,BUTWITHOUTTHE

RIGHTTODRILL,MINE,EXPLORE,OPERATE,PRODUCE,STOREOR REMOVEANYOFTHE

SUBSURFACERESOURCESTHROUGHORINTHESURFACEOFTHEPROPERTYORTHEUPPER FIVEHUNDRED(500) FEETOFTHESUBSURFACE OFTHEPROPERTY. "
347/020269-0040
1036916.07a08/07/23 -18-
Item Number: 2.

SCHEDULE 1

AGREEMENTS/LIEN AMOUNTS

AGREEMENTS LIEN AMOUNT

1. Monument Agreement for Tract No. 32030 (Villages 3 & 10) $20,000.00 dated March 22, 2006 by and between DR Horton Inc. and
City of Desert Hot Springs.

2. Grading Agreement for Tract No. 32030 (Villages 8) dated $57,000.00 ‘ , 2006 by and between DR Horton Inc. and City
of Desert Hot Springs.

3. Grading Agreement for Tract No. 32030 (Villages 9) dated 7 $12,000.00 , 2006 by and between DR‘Horton Inc. and City I
of Desert Hot Springs.

4. Street — Storm Drain Agreement for Tract No. 32030 $1,823,000.00 (Villages l, 2, 3, 4, 5, 6, 7, 8, 9, 10 — Spine Roads) dated March 22, 2006 by and between DR Horton Inc. and City of Desert Hot Springs. 7

5. A Street — Storm Drain Agreement for Tract No. 32030 $1,540,000.00 A (Villages 1, 2, 3, 4, 5, 6, 7, 8, 9, 10 — Public Roads) dated ” 1 March 22, 2006 by and between DR Horton Inc. and City of Desert Hot Springs.

6. Water and Sewer Improvements Agreement and Bond for $2,860,946.00 Tract No. 32030 (Villages 3 & 10) dated March 22, 2006 by andbetweenDR Horton Inc. and City of Desert Hot Springs.

7. Street — Storm Drain Agreement for Tract No. 32030 $2,609,530.00 A (Villages 3 & 10) dated March 22, 2006 by and betweenDR Horton Inc. and City of Desert Hot Springs.

8. , Grading Agreement for Tract No. 32030 (Village 5) dated $67,000.00 July 12, 2006 by and betweenDR Horton Inc. and City of
Desert Hot Springs.

9. Grading Agreement for Tract No. 32030 (Village 4) dated $26,000.00 July 12, 2006 by and between DR Horton Inc. and City of Desert Hot Springs.

10. [Need Subdivision Improvement Agreement which $20,000.00 Schedule 1
347/020269-0040
103691607a08/07/23
Item Number: 2.

11. corresponds to Bond No. 6374143]

12. [Need Subdivision Improvement Agreement which
corresponds to Bond No. 6416350]
$491,000.00
347/020269-0040
1036916072108/07/23 '2"
Item Number: 2.

Item Number: 2.

Agreements Lien Amount
New
Required
security
New Lien
Amount
1 Monument Agreement for Tract No. 32030
(Villages 3 and 10) dated March 22, 2006, by and
between DR Horton and City of Desert Hot
Springs
$
20,000.00 100%
$
20,000.00
2 Grading Agreement for Tract No. 32030 (Village
8) dated 2006 by and between DR Horton and
City of Desert Hot Springs
$
57,000.00 0%
$
-
3 Grading Agreement for Tract No. 32030 (Village
9) dated 2006 by and between DR Horton and
City of Desert Hot Springs
$
12,000.00 0%
$
-
4 Street - Storm Drain Agreement for Tract No.
32030 (Villages 1, 2, 3, 4, 5, 6, 7, 8, 9, 10 - Public
Roads - Exterior Streets) dated March 22, 2006,
by and between DR Horton and City of Desert
Hot Springs
$
1,823,000.00 60%
$
1,093,800.00
5 Street - Storm Drain Agreement for Tract No.
32030 (Villages 1, 2, 3, 4, 5, 6, 7, 8, 9, 10 - Spine
Roads-Interior Streets) dated March 22, 2006, by
and between DR Horton and City of Desert Hot
Springs
$
1,540,000.00 80%
$
1,232,000.00
6 Water and Sewer Improvements Agreement for
Tract No. 32030 (Villages 3 and 10) dated March
22, 2006, by and between DR Horton and City of
Desert Hot Springs
$
2,860,946.00 100%
$
2,860,946.00
7 Street - Storm Drain Agreement for Tract No.
32030 (Villages 3 and 10) dated March 22, 2006,
by and between DR Horton and City of Desert
Hot Springs
$
2,609,530.00 100%
$
2,609,530.00
8 Grading Agreement for Tract No. 32030 (Village
5) dated July 12, 2006, by and between DR
Horton and City of Desert Hot Springs
$
67,000.00 0%
$
-
9 Grading Agreement for Tract No. 32030 (Village
4) dated July 12, 2006, by and between DR
Horton and City of Desert Hot Springs
$
26,000.00 0%
$
-
Item Number: 2.

10 Bond No. 6374143
$
20,000.00 10%
$
2,000.00
11 Bond No. 6416350
$
491,000.00 10%
$
49,100.00
Total Public Improvements
$
9,526,476.00
$
7,867,376.00
Completed Public Improvements $ 1,659,100.00
New Total Public Improvements $ 7,867,376.00
Proposed 10% Infla�on of cost from 2006 Es�mate $ 786,737.60 Proposed First Amendment to Lien Contract Amount $ 8,654,114 Item Number: 2.

ORDINANCENUMBER

AN ORDINANCEOF THE CITYCOUNCILOF THE CITYOF DESERT HOT

SPRINGS, CALIFORNIA,APPROVINGTHE FIRST AMENDMENT

DEVELOPMENTAGREEMENTBYAND BETWEENTHE CITYOF DESERT

HOT SPRINGS ANDSKYBORNEVENTURES,LLC
WHEREAS,to strengthen the public planning process, encourage private participation in comprehensive planning and reduce the economic risk of development, the Legislature of the State of California adopted Section 65864 et seq. of the California Government Code (the “Development Agreement Statute”); and I
’ WHEREAS,the Development Agreement Statute authorizes the City to enterinto. a property development agreement with any person having legal or equitable interest inreal property for the development of such property in order to establish certain development rights; and
r:;.WHERE‘AS;_theidevelopment agreement and associated entitlements are Ii subject to CEQA and CEQA review was completed; and ‘ *
n WHEREAS*;Cityof Desert Hot Springs City Council conducted a properly E noticed public hearing to‘ consider the First Amendment to Development A r Agreement (as defined below), at which testimony and evidence, both written and I oral, iwerepresented to and considered by the City Council; and I WHEREAS,ntheCityICouncil shall approve a development agreement by ordinance.

E’
I NOWfTHEREFORFE,THE CITY COUNCILOF THE CTIY OF DESERT
HOT SPRINGS DOES ORDAINAS FOLLOWS:

SECTION 1. RECITALS
I That the above Recitalsare true and correct and are incorporatedas though fullyset forth herein.

Item Number: 2.

SECTION 2: APPROVAL OF FIRST AMENDMENTTO DEVELOPMENT

AGREEMENT
That the City Council hereby approves the First Amendment to Development Agreement By and Between the City of Desert Hot Springs and SKYBORNEVENTURES,LLC(“First Amendment to Development Agreement”), a copy of which is attached hereto and incorporated herein by this reference as Exhibit subject to the terms and conditions stated therein.

SECTION 3. SEVERABILITY
That the-City Council declares that, should any provision, section, paragraph, sentence or word of this Ordinance be rendered or declared invalidby any final court action in a court of competent jurisdiction or by reason of any , . preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this Ordinance as hereby adopted shall remain in fullforce and effect.

SECTION4: EFFECTIVEDATE OF ORDINANCE
That this Ordinance shall take effect thirty (30) days after its second reading by the City Council.

SECTION 5: EFFECTIVE DATE OF FIRST AMENDMENT TO
DEVELOPMENTAGREEMENT A . A
i ~
A —,The First Amendment to Development Agreement shallnot be executed by I
the City until on or after the effective date of the Ordinance.

SECTION 6: RECORDATION OF FIRST AMENDMENT TO I DEVELOPMENTAGREEEMENT A That the City Clerkeis hereby directed to record thefully executed First Amendment to Development Agreement with the Riverside County Recorder no later than ten (10) days after its execution.

SECTION 7: CERTIFICATION
= That the City;,Clerkshall certify to the passage of this Ordinance and shall I cause the same to be published according to law. [THE REMAINDEROF THIS PAGE INTENTIONALLYLEFTBLANK]
Item Number: 2.

PASSED AND ADOPTED THIS __ day of , 2023.

CITYOF DESERT HOT SPRINGS
Scott Matas, |\/‘layer A ATTEST:

Jerryl Soriano
City Clerk
APPROVED AS TO FORM:

Jennifer Mizrahi,City Attorney
Item Number: 2.

EXHIBIT“A”

FIRST AMENDMENTTO DEVELOPMENTAGREEMENT

BYAND BETWEEN

THE CITYOF DESERT HOT SPRINGS

AND SKYBORNEVENTURES,LLC

SEE ATTACHED
Item Number: 2.

RECORDING REQUESTEDBY AND
WHEN RECORDED MAIL TO:

City of Desert Hot Springs
Attn: City Clerk
11999 Palm Drive
Desert Hot Springs, CA 92240
(SPACE ABOVE FOR RECORDER’S USE)
[EXEMPTFROM RECORDING FEES PURSUANT TO GOVERNMENTCODE SECTION 6103 AND27383] FIRST AMENDMENT TO DEVELOPMENT AGREEMENT NO. 01-04

THIS FIRST AMENDMENT TO DEVELOPMENT AGREEMENT
9 NO. 01-04 (the “First
Amendment”)is made and entered into as of this __ day of August, 2023, by and between theCity To ‘ ’ O‘ of DesertHot Springs, a California municipal corporation (the “City”), andiSkyborne Ventures, a Californialimitedliability company (the “Developer”) with respect to the followingfacts:

RECITALS
so _ A; ; ,_,Cityand-Firs1_;West-DHSAssociates,LLC, a California limited liability company, as :;:.;;_i;;; g?predecessor,,in,..interest Ito”We’SferniP-aci?c,,.Housing, Inc., a Delaware corporation (“WPH”), entered " _into"thatcertain‘development"agreement,recorded as Document No. 2005-0355117 in the Official - Records of Riverside County, ‘State-ofCalifornia on or about May 5, 2005(the “Development Agreement”);
H 2
so
A
,,
9 B.; On or about September 15, 2008, City, pursuant to Section 3.5 of the Development » , "Agreement, approvedfaSubsequent DevelopmentApproval as to Section 4.1.3 related to the Karen Street Park (the “Subsequent Park Approval”);
*2 — » _ City, approvedFandapursuant to that approval, WPH assigned the Development A “Agreement toiSkyborneVentures, LLC,recorded September 19,2008 as Document No. 2008-0514881 ' in-theOf?c-ial—Records of Riverside County, State of California (the “Official Records”); T 7 , CD.", Pursuant to the .Development Approvals, WPH obtained a building permit and V
A A : constructedxno:lessthan 100 residentialunits at the Property within three (3) years of May 5, 2005, extending-theTerm of theDevelopmentAgreement, suchthatthe Term of the Agreement was to expire May 5, 2015;
T
O
E. __Pursuant to Sections 6.1 and 6.6 of the DevelopmentAgreement,heCity conducteda O A - PeriodicReview of the Development-Agreementon March 3, 2015 and certifiedthattheDevelopment Agreement remained then in effect and Developer was not in default of the Development Agreement ’ by recording a Certi?cate ofCompliance as Document No. 2015-0291464 in theOfficialRecords on or about July 7, 2015 and extended the Development Agreement for an additional ten (10) years, through May 5, 2025; and
F. In accordancewith Section 2.5 of the DevelopmentAgreement-and Government Code section 65868, City and Developer now desire to amend the DevelopmentAgreement subjectto, and on the terms and conditionsset forth in this First Amendment. I All capitalizedterms not otherwise defined herein shall have the meaning(s) set forth in the DevelopmentAgreement. In considerationof the mutual covenants and agreements containedherein Item Number: 2.

and other good and valuable consideration,the receipt and legal sufficiency of which is hereby acknowledged,City and Developeragree as follows:

1. Amendments.
(a) Section 1.2 of the DevelopmentAgreement is hereby deleted in its entirety and the following Section 1.2 is hereby substitutedin its place:
“Exhibits. The following exhibits are hereby replaced and revised exhibits are attachedto, and by this referenceare made a part of the Agreement:

Exhibit "A" - Legal Descriptionof the Property.

Exhibit “B" — Map showingProperty and its location.

Exhibit "C" - ExistingDevelopmentApprovals.

Exhibit "D” — ExistingLand Use Regulations.

Exhibit "E" - Performance Schedule.

Exhibit “F”
— Fee Schedule.”
following Section 2.3 is hereby substitutedin its place:
':?"7I‘:'=:(b)‘::’:;:’S.6CtlOl’l —2—.3*of—the:Development Agrement is hereby deleted in itsentirety and the———i?l- ‘ ' T‘?i..The term of this Agreement is extended such that it shall expire . -_ . I .0if on Maye5, 2035. The City Council shall find that the Owner is in substantial compliancewith this Agreement so long as the Owner is not in material default of any term herein. Thisfinding by the City Council as shall takeplace duringthe PeriodicReview. Further,ifthe City Council findsthat the Owner is in substantial complianceduring the Periodic , Review conducted in the year this Agreement is set to expire, this -«Agreement shall be automaticallyrenewed for an additionalten (10) years upon the same terms and conditionsas containedherein.” 9 (b)
‘(c) " Pursuant to Section27(0) of the DevelopmentAgreement, the notice addressesfor the parties are modi?ed as follows:

F Section 2.4.4 of the DevelopmentAgreement is hereby deleted in its entirety.

If to City:

CityManager
City of Desert Hot Springs
11999 Palm Drive
Desert Hot Springs, CA 92240
If to Owner.

SkyborneVentures, LLC
505 Lomas Santa Fe Drive, Suite 230
SolanaBeach, CA 92075
Attn: GregoryP. Lansing
Item Number: 2.

With a Copy to:

Lansing Industries,Inc.
505 Lomas Santa Fe Drive, Suite 230
SolanaBeach, CA 92075
Attn: Paul W. Pitingaro,Esq
(d) Section 3.3 of the DevelopmentAgreement is hereby deleted in its entirety and the following Section 3.3 is herebysubstitutedin its place:
“Timing of Development.The parties acknowledgethat Owner cannot at this time predict when or the rate at which phases of the Property will be developed.Such decisionsdependupon numerous factors that are not within the control of Owner, such as market orientation and demand, interestrates, absorption,completionand other similarfactors. Sincethe _ CaliforniaSupreme Court held in Pardee Construction Co. v. City of Camarillo (1984) 37 Cal.3d 465, that the failure of the partiestherein to provide for the timing of development resulted in a later adopted 4 initiative restricting the timing of developmentto prevail over such ’ parties’ agreement, it is the parties‘ intent to cure that de?ciency by * :5acknowledging and providing that Owner shallhave the right to develop . the‘Propertyin such order and at such rateandat such times as OwnerT ~ deems appropriate within the exerciseof its subjectivebusiness = judgment, subject only to the timing and phasing requirementsas shown inExhibit’"E",which timing and phasing requirementsmay be modi?ed ' from time to time by the City Manager, in City Manager’s reasonable ;:discretion, after request from Owner, and as otherwise set forth in the DevelopmentPlan or the Phasing Plan set forth in Section 3.4.” — r (e)., Section 3.3 of the DevelopmentAgreement is hereby deleted in its entirety and the following Section 3.3 is hereby substitutedin its place: 3 7 '
“PhasingPlan.Developmentof the Property shall be subjectto alltiming and phasing requirementsas shown in Exhibit "E"",which timing and phasing requirements may be modified from time to time by the City — ..__ __ . . Manager, in, City Manager’s reasonable discretion,after request from Owner, and as otherwise established by the Development Plan, includingthe Specific Plan. Once it has obtaineda building permit and ’ ,. begun construction of a phase of the Project, Owner shall diligently proceed to completionof such phase.”
(f) Section 3.6.1 ((1)of the DevelopmentAgreement is hereby deletedin its entirety. (g) Section 3.6.2 of the DevelopmentAgreement is hereby deleted in its entirety and the following Section 3.6.2 is hereby substitutedin its place:
“SubsequentDevelopmentApprovals. This Agreement shall not prevent City, in acting on SubsequentDevelopmentApprovals, from applying SubsequentLand Use regulations that are unrelated to the Development Plan, nor shall this Agreement prevent City from denying or conditionallyapproving any SubsequentDevelopmentApproval on the basis of Existing Land Use Regulations or any SubsequentLand Use Item Number: 2.

Regulation not in conflictwith the standardsset out in the Development Plan.”
(h) Section 4.1.1 of the DevelopmentAgreement is hereby deleted in its entirety and the following Section 4.1.1 is hereby substitutedin its place:
“Pierson Blvd. Improvements. Owner to make contribution to the City in the sum of $600,000,without any credit against impactfees or right of reimbursement whatsoever, toward the total cost of currently proposed improvements required on Pierson Boulevard east of the Project in order to meet the increasedtraf?c demand identi?ed in the EIR as being generated by the Project. Said contributionshall be in lieu of any other mitigation suggested or proposed in the EIR speci?c to the Project’s impacton PiersonBoulevardeast of the Project.As of the date hereof, Owner has contributed $400,000 of the $600,000 to the City.

Owner shall cause the ?nal payment of $200,000 to be directedto the City fromproceeds received by Owner from the remainingbond salesto fund improvementsin Improvement Area 1 of CFD2006—1(de?ned below)?’
* ::;::_z— .(i)::: .—;Section_4.i1_;2e:of:the Devlopment Agreement is hereby deleted in its entirety and they 77 1 following Section 4.1.2 is hereby substitutedin its place: a “Fire Station. Owner’s obligations to construct the Permanent Fire Station have been satis?ed.”
(j) , .,.Sections 4.1I.3._(a)and (b) of the A Development greement, as modi?ed by the Subisequent Park,Approval,is herebydeleted in its entirety and the following Sections 4.1.3 (a) and (b) is hereby substitutedin its place:
“(a) ;iKaren Street Park. Owner shall: (i) dedicate to City the ‘
— approximately?ve (5) acre site identi?ed in the conditionsof approval ‘ incorporatedin the DevelopmentPlan (the “Karen Park Parcel”) for use as a publicpark within ?fteen (15) businessdays of the recording of this First Amendmentin the Of?cial Records;and (ii) contribute$1,200,000 (“Karen Park Payment”) to the City for constructionof the improvementsat the Karen Park Parcel concurrent with the sale of the earlier of any lots in either Village 3 or Village 10. Owner will notify City Manager in writing upon the opening of escrow to sell the lots in either.Vil1age3 or Village 10 to facilitate City’s delivery of an escrow demand to Owner and escrow holder for payment of the ‘Karen Park Payment from Owner’s proceeds from the sale.Following dedicationof the Karen Park Parcel and delivery of the Karen Park Payment, Developershall have satis?ed its obligationsrelated to the Karen Park Parcel.
(b) s ParksWithin Development.Owner shall developthe park(s) and open areas described in the Development Plan consistent with City standards and as approved by the City Manager. Any and all parks identi?ed within any Village shall be completed on or before issuance of ?fty percent (50%) of the certi?cates of occupancy for a residential Item Number: 2.

unit in that Village. Provided all park areas are developed concurrent with the build—outof each Village, Owner shall be entitled to credit against Quiinby fees equal to the improvedpark acreage deemedby the City to be park area. Owner shall ensure that the park areas shall be owned, used and maintained by the Homeowner’s Association as park areas in perpetuity.”
(k) Section 4.1.4 of the Development Agreement is hereby deleted in its entirety and the following Section 4.1.4 is hereby substitutedin its place:
“Financingof Public Improvements.
(a) Infrastructure Financing. The Owner believes that the project cannot proceed without a CFD or Alternative Financing Mechanism (“Financing District”) to reimburse the developer for public facilities costs forinfrastructureto be owned by the City or other public agencies and associatedeveloperimpactfees. At Developer'srequest, Citymay at its solediscretion establish an assessment district(s), community ,, facilities district(s) or other public financingmechanismto finance any —— e :; necessary public improvementsfor the Project substantiallyconsistent with the financing plan (“FinancingPlan”).
j* P :(b) Improvements and Financing/CommunityFacilities District. Pursuant to Chapter2.5 (commencing with section53311)Part 1,Division 2, Title 5 of the Government Code of the State of California,commonly known ,
’ as the ."Mello-RoosCommunityFacilities Act of 1982," the Developer ‘ T
” c ?1nay,;iat itssole election,petition the City Council of the City or a joint 0 " powers ‘agency in which the City is a memberto establish a Community FacilitiesDistrict ("CFD" or “District”), in accordance with the City's policies in existence on the Effective Date. Alternatively, or in addition thereto, the Developer may request that the City initiateand complete .
. proceedings under the Municipal Improvement Act of 1911, the I "
_ ‘Municipal Improvement Act of 1913, the Improvement Bond Act of 1915, or any and all otheravailable public financing mechanism,to provide public conduit financing for the construction of public infrastructure improvements on the Property ("Alternative Financing Mechanisms").If so requested by the Developer,the City may at itssole discretion cooperate with the Developer (or, for matters beyond its . control, and may use its best efforts) in taking all steps necessary to causethe CFD or AlternativeFinancingMechanismsto issue bondsfor such purposes. If the Property is includedwithin a CFD or Alternative FundingMechanismwith othersurrounding properties,the specialtaxes or special assessments burdeningthe various propertiesso includedshall be apportionedona fair share basisrelatedto the benefitderivedby each of such properties in accordance with City policies at the time such property is included.
(c) Existing CFD. Community Facilities District No. 2006-1 (Skyborne) (“CFD2006—l”)was formedby the City in 2006. Developerhas applied for, and City Council has will work in good faith in implementingthe followingchangesto CFD2006-l: (i) issuance of a second (2nd)series of Item Number: 2.

bondsto fund further improvementsand fees in Improvement Area 1 of CFD2006-1;and (ii) dissolutionof ImprovementArea 2 of CFD2006-1 for Villages 3 and 10
(d) New CFD. City agrees that followingDeveloper’s application,petition or other request in writing for the dissolutionand/or establishmentof a CFD for any or all of Villages 3, 4, 5, 6, 7, 8, 9 or 10 (each, a “SubsequentCFD”), together with depositof sufficient funds to pay the City’s costs to undertake the proceedingsto establish any Subsequent CFD, City shall expeditiouslyconductsuch proceedings to establish the Subsequent CFD in accordancewith the Mello~RoosAct and City’s policies in existence as of the Effective Date and Developer shall cooperate in the conduct of such proceedings. Each Subsequent CFD shall, at a minimum,be subject to the followingrequirements i. Tax Rate. City agrees that the maximum effective tax rate for each Subsequent CFD shall not exceed two percent (2%) based upon the product andpricingprovided by the Developer.In addition,the effective tax rate calculationfor each CFD or AlternativeFinancingMechanisms shallnot include trash collectionand sewer service assessment charges that are levied on the annual property tax bill.
' 7?"ii—.~*~Joir‘ite:Facilities. City agrees that any Subsequent CFD may ?nance, in ’
4 addition to City fees, infrastructure,and public facilities, those fees, ' ‘ infrastructure, and public facilities of other governmental agencies A required’in connection with theDevelopmentPlan, the Developmentof the Property and any Subsequent DevelopmentApprovals, including, ‘ " without limitation, Palm Springs Unified School District, Mission ,, Springs Water District,and the County of Riverside.
‘ iii. a‘ Improvement Areas. City agrees that Developer, workingwiththe TT _ Cityis Special Tax Consultant and Formation Counsel, will advise the . City on the structure of proposed improvementareas’ whichwould be designated and includedwith each SubsequentCFD.”
(1) ~ Section 4.2.1 of the DevelopmentAgreement is hereby deleted in its entirety and the following Section 4.2.1 is herebysubstitutedin its place:
“Amount and Components of Fee. The Owner shall pay the service, a permit, impact and other applicable fees required by the City for the Existing Development Approvals and any Subsequent Development Approvals as provided in Exhibit “F”.”
(m) Section 4.2.4 is hereby added to the DevelopmentAgreement:
“Art In Public Places. Owner has donated approved public art in conjunction with the Project’s entry monumentation,which public art has been acceptedby the City Council, entitling Owner to fee credits in the amount of the actual cost of the public art. Documentation of actual costs are required, and its adequacy shall be determinedby the City Manager prior to allocating the fee credit. The amount of fee credits provided to the Owner shall be limited to the actual costs of the public Item Number: 2.

(H)
art and in the event the actual costs total an amount less than the Art In PublicPlaces Program contributionamount requiredby MunicipalCode section l7.60.050, Owner shall also pay into the City’s Art in Public PlacesFund an amount equalto the differencebetweenthe Art in Public Places contribution amount required by Municipal Code section l7.60.050 and the actual costs of the public art.”
Section 6.1 of the DevelopmentAgreement is hereby deleted in its entirety and the following Section 6.1 is herebysubstitutedin its place: ‘ 6 (0)
“Periodic Review. The City Council shall review this Agreement annually, on or beforethe anniversary of the Effective Date, in orderto ascertain the good faith compliance by Owner with the terms of the Agreement. Owner shallsubmit an AnnualMonitoringReport, in a form acceptableto the City Council, within 30 days after written notice from the City Council. The Annual MonitoringReport shall be accompanied by an annual review and administration fee sufficient to defray the estimated costs of review and administrationof the Agreement during thedsucceeding year. The amount of the annual review and 2 administrationfee shall be set annually by resolution of the City Council.”
A Section6.2 of the Development Agreement is hereby deleted in its entirety and the following Section 6.2 is hereby substitutedin its place:
(Pl
(C1)
. .,“Special Review. The City Council may order a special reviewof C compliance with this Agreement at any time. The City Manager shall conductsuch specialreviews.”
. ,, _ *7 Section 6.3 (b) ofthe DevelopmentAgreement is hereby deleted in its entiretyand the ,. following Section 6.3 (b) is herebysubstitutedin its place:
—f—‘Upon—completion of a periodic review or a special review, the City Manager shallsubmit a report to the City Council.”
Section 6.6 of the Development Agreement is hereby deleted in its entirety and the following Section 6.6 is herebysubstitutedin its place:
“Certificate of Agreement Com_pliance.If, at the conclusion of a Periodic or Special Review, Owner is found to be in compliance with ,_,this Agreement, City Manager shall, upon request by Owner, issue a Certificate of Agreement Compliance (“Certi?cate”) to Owner stating that after the most recent Periodicof SpecialReview and based upon the information known or made known to the City Council that (1) this Agreement remains in effect and (2) Owner is not in default. The Certificate shall be in recordable form, shall contain information necessary to communicateconstructive record notice of the finding of compliance,shall state whether the Certificateis issued after a Periodic of SpecialReview and shall state the anticipateddate of commencement of the next PeriodicReview. Owner may record the Certi?cate with the County Recorder.

Item Number: 2.

Whether or not the Certi?cate is relied upon by assignees or other transferees or Owner, City shall not be bound by a Certi?cate if a default existed at the time of the Periodic of SpecialReview, but was concealed from or otherwise not known to the City Manager or City Council.” (r) Exhibit “A” — Legal Description of Property, Exhibit “B” — Map Of Property and Exhibit “E” — Performance Schedule are deleted and the attachedExhibit “A” — Legal Descriptionof Property, Exhibit “B” — Map Of Property and Exhibit “E” — Performance Schedule are substituted in their place.
(s) Exhibit “F”
— Fee Schedule”, is hereby added to the DevelopmentAgreement.

2. Full Force andEffect. Except as expresslyprovided in this First Amendment,all of the terms and provisionsof the DevelopmentAgreement are and will remain in full force and effect and are hereby ratified and confirmed by the parties hereto. Without limiting the generality of the . foregoing, the amendments contained herein will not be construed as an amendmentto or waiver of any otherprovisionof the DevelopmentAgreement or as a waiver of or consent to any further or future ‘ action on the part ofeither party that would requirethe waiver or consent of the other party. On and F
._ after.the date hereof,each reference in the Development Agreement to “this Agreement,” “the W : '“Agreement,” “hereunder,” .‘e‘hereof,”e“herein” or words of like import, and each reference to the .:,»:;;—;:;:Agreement—ein any_other.—agreements; documents or instrumentsexecuted and deliveredpursuant to, or he iniconnection?/ith,ithe,Agr‘eement,~willmean and be a reference to the DevelopmentAgreement as amended by this First Amendment.

3. Miscellaneous.
.
_
* (a) This First Amendment is governed by, and construed in accordance with, the * lawsof the Stateof California,without regard to the con?ict of laws provisions of such state. .
— (b) 'ThiseFirstAmendmentshall inure to the benefit of and be binding upon each of F - —— the parties and each oftheir respective permittedsuccessors and permitted assigns. e . sf 2- .

F (c) .
e The headings in”thi'sFirst Amendment are for reference only and do not affect the interpretationof this First Amendment.
'(d) ” ‘This First ‘Amendment may be executed in counterparts, each of which is A deemed anoriginal, but all of which constitutes one and the same agreement. (e) Each party shall pay its own costs and expenses in connection with this First —
A Amendment(including the fees and expenses of its advisors,accounts and legal counsel). (f) This First Amendment constitutesthe sole and entire agreement of the parties hereto with respect to the subject matter contained herein, and supersedes all prior and contemporaneous understandings, agreements, representations and warranties, both written and oral, with respect to such subject matter.
[SIGNATURES ON FOLLOWING PAGE]
Item Number: 2.

Executed this __ day of August, 2023
CITY OF DESERT HOT SPRINGS: DEVELOPER:

SKYBORNE VENTURES, LLC, a California
limitedliabilitycompany
Doria Wilms,Interim City Manager BY: LANSING STRATEGIC ” MANAGEMENT,LLC a California limitedliability company
BY: JK—RIVERWOODS, LLC, A

CALIFORNIA LIMITED

LIABILITYCOMPANY

ITS GENERAL PARTNER
BYi
JAMES M. KOZAK
ITS: SOLE MEMBER ATTEST:

Jerryl Soriano,'City Clerk
APPROVED AS TO FORM:

Jennifer Mizrahi,City Attorney
Item Number: 2.

EXHIBIT “A”

LEGAL DESCRIPTION OF PROPERTY
[SEE ATTACHED]
Item Number: 2.

Real property in the City of Desert Hot Springs, County of Riverside,State of California, described as follows:

PARCEL1: INTENTIONALLYDELETED
PARCEL2: INTENTIONALLYDELETED
PARCEL3: (APN'S: 667-300-001 THROUGH054, 058; 667-310-001 THROUGH084 AND088; 667- 320-001 THROUGH026, 029 THROUGH078, 080 THROUGH083 AND667-330-001 THROUGH013, 015 THROUGH072 AND076) LOTS1 THROUGH286 ANDLETTEREDLOTS"O"THROUGH"Z"AND"AA"OF TRACTNO. 32030-3 AS SHOWNON BYMAPON FILEIN BOOK419 PAGES29 THROUGH39 OF MAPS,RECORDSOF RIVERSIDECOUNTY,CALIFORNIA.

E PARCEL4: (APN'S:667-340-001.THROUGH048 AND051; 667-350-001THROUGH074 AND078 THROUGH080; AND667-360-001 THROUGH060 AND064)
,
‘ LOTS1 THROUGH182,INCLUSIVE, ANDLETTEREDLOTS"H"THROUGH"S",INCLUSIVE, OF TRACT ‘"*%NO:.-‘3-2030-’10, AS SHOWN-:BIY, MAPON FILEIN BOOK419 PAGES40 THROUGH47 OF MAPS, RECORDSOF RIVERSIDECOUNTY,CALIFORNIA. 6 PARCEL5: (APN'S:667-080-006,667-100-029,031 AND038)
TENTATIVE.(TRACT)_MAP 32030-4, BEINGA SUBDIVISIONOFTHEFOLLOWINGDESCRIBED PROPERTY:

PARCELNO. 1:
i W THESOUTH_‘/2?OETH_ESNORTHWEST1/4OF SECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST,SAN . BERNARDINOBASEANDMERIDIAN, STATE OF CALIFORNIA, ACCORDINGTO THEOFFICIAL GOVERNMENTPLATTHEREOF.
'A.ANYANDALL(I)OILRIGHTS,(II)MINERALRIGHTS,(III)NATURALGASRIGHTS,(IV)RIGHTS Item Number: 2.

TO ALLOTHERHYDROCARBONSBYWHATSOEVERNAMEKNOWN,(V) GEOTHERMALHEATRIGHTS

OR GEOTHERMALSUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY,(VI)WATER

RIGHTSANDCLAIMSOR RIGHTSTO WATERAND(VII) ALLPRODUCTSDERIVEDFROMANYOF THEFOREGOING(COLLECTIVELY, "SUBSURFACERESOURCES")LOCATEDIN OR UNDERTHAT

CERTAINREALPROPERTYSITUATEDIN THECOUNTYOF RIVERSIDE,STATEOF CALIFORNIA DESCRIBEDIN EXHIBIT"A"ATTACHEDHERETOANDINCORPORATEDHEREIN(THE"PROPERTY"), TO THEEXTENTSUCHSUBSURFACERESOURCESHAVENOT BEENPREVIOUSLYRESERVED; AND B. THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,STOREANDREMOVE

ANYOF THESUBSURFACERESOURCESON OR FROMTHEPROPERTY,INCLUDINGWITHOUTLIMITATIONTHE

RIGHTTO WHIPSTOCKOR DIRECTIONALLYDRILLANDMINE,FROM LANDSOTHERTHANTHEPROPERTY,

WELLS,TUNNELSANDSHAFTSINTO,THROUGHORACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO

BOTTOMSUCHWHIPSTOCKEDOR DIRECTIONALLYDRILLED WELLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL,RETUNNEL,EQUIP, MAINTAIN,REPAIR,

DEEPENANDOPERATEANYSUCHWELLSOR MINES,BUTWITHOUTTHERIGHTTO DRILL,MINE,EXPLORE,

OPERATE,PRODUCE,STOREOR REMOVEANYOF THESUBSURFACERESOURCESTHROUGHORINTHE SURFACEOFTHEPROPERTYORTHEUPPERFIVEHUNDRED(500) FEETOFTHESUBSURFACEOFTHE PROPERTY.) "
PARCELNO. 2:
7 I (THESOUTHWEST,1/4OF SECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST,SANBERNARDINO

BASEAND,MERIDIAN, STATEOF CALIFORNIA,CCORDINGTO THEOFFICIALGOVERNMENT PLAT THEREOF.
— EXCEPTINGTHEREFROMTHEEAST‘/2OF THESOUTHWEST‘/4.

I VWAILSO ‘EXCEPTINGTHEREFROMTHEEAST‘/2OFTHENORTHEAST1/4OFTHENORTHWEST ‘/4OF THESOUTHWEST‘/4OF SAIDSECTION. ‘I
*’ALSOEXCEPTINGTHEREFROMTHESOUTHERLY40 FEETCONVEYEDTO THECOUNTYOFI RIVERSIDEBYDEEDFILEDFORIRECORDJULY26, 1949 AS INSTRUMENTNO. 3081 OF OFFICIAL RECORDSOF RIVERSIDECOUNTY,CALIFORNIA.

I —EXCEPTING._THEREFROMANYPORTIONLYINGWITHINTRACT32030-1 AS SHOWNON FILEIN BOOK404 PAGES67 THROUGH75 OF MAPS,RECORDSOF RIVERSIDECOUNTY,CALIFORNIA.

ALSOEXCEPTINGTHEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC.,A COLORADOCORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2006, AS INSTRUMENTNO. , 2006-0756951 OF OFFICIALRECORDSOF SAIDCOUNTY.SAIDINTERESTIS FURTHERDESCRIBED AS FOLLOWS:

A. ANYANDALL(I),O|L RIGHTS,(II)MINERALRIGHTS,(III)NATURALGASRIGHTS,(IV)RIGHTSTO ALLOTHER

HYDROCARBONSBYWHATSOEVERNAMEKNOWN,(V)GEOTHERMALHEATRIGHTSORGEOTHERMAL

SUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY,(VI)WATERRIGHTSANDCLAIMSOR RIGHTS ‘TOWATERAND(VII)ALLPRODUCTS‘DERIVEDFROMANYOF THEFOREGOING(COLLECTIVELY, "SUBSURFACE RESOURCES")LOCATEDINOR UNDERTHATCERTAINREALPROPERTYSITUATEDINTHECOUNTYOF RIVERSIDE, STATEOFCALIFORNIADESCRIBEDINEXHIBIT"A"ATTACHEDHERETOANDINCORPORATED HEREIN(THE"PROPERTY"),TOTHEEXTENTSUCHSUBSURFACERESOURCESHAVENOTBEENPREVIOUSLY RESERVED;AND
B. THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,STOREANDREMOVE

ANYOFTHESUBSURFACERESOURCESON OR FROMTHEPROPERTY,INCLUDINGWITHOUTLIMITATIONTHE

RIGHTTO WHIPSTOCKORDIRECTIONALLYDRILLANDMINE,FROM LANDSOTHERTHANTHEPROPERTY,

WELLS,TUNNELSANDSHAFTSINTO,THROUGHORACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO

BOTTOMSUCHWHIPSTOCKEDOR DIRECTIONALLYDRILLED WELLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL,RETUNNEL,EQUIP, MAINTAIN,REPAIR,

DEEPENANDOPERATEANY
Item Number: 2.

SUCHWELLSOR MINES,BUTWITHOUTTHE RIGHTTO DRILL,MINE,EXPLORE,OPERATE, PRODUCE,STOREOR REMOVEANYOF THESUBSURFACERESOURCESTHROUGHOR INTHE SURFACEOFTHEPROPERTYORTHE UPPERFIVEHUNDRED(500) FEETOFTHESUBSURFACEOF THEPROPERTY.)
PARCELNO. 3:

THEEAST1/2OF THESOUTHWEST‘/4,ANDTHEEAST‘/2OFTHENORTHEAST‘/4OF THE NORTHWEST‘/4OFTHESOUTHWEST‘/4OF SECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST, SANBERNARDINOBASEANDMERIDIAN, STATE OF CALIFORNIA,CCORDINGTO THE OFFICIAL GOVERNMENTPLATTHEREOF.

EXCEPTINGTHEREFROMTHESOUTHERLY40 FEETASCONVEYEDTO THECOUNTYOF RIVERSIDE, BYDEEDRECORDEDJULY26, 1949 AS INSTRUMENTNO. 3081 OF OFFICIALRECORDSOF RIVERSIDECOUNTY,CALIFORNIA.

EXCEPTINGTHEREFROMANYPORTIONLYINGWITHINTRACT32030-1 AS SHOWNON FILEIN BOOK404 PAGES67 THROUGH75 OF MAPS,RECORDSOF RIVERSIDECOUNTY,CALIFORNIA.

ALSOEXCEPTINGTHEREFROMANYPORTIONLYINGWITHINTRACT32030-3 AS SHOWNON FILE A
I IN BOOK419 PAGES 29 THROUGH39 OF MAPS,RECORDSOF RIVERSIDECOUNTY,CALIFORNIA. ' ' TALSOEXCEPTINGTHEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC., A LLTCOLORADOICORPORATION BYDOCUMENTRECORDEDVOCTOBER 13, 2006, AS INSTRUMENTNO.

I£2006:0756951?OF’OFFICIAL‘RECORDSOF SAIDCOUNTY.SAIDINTERESTIS FURTHERDESCRIBED AS FOLLOWS:
' 7’ ’
' A."ANY'ANDALL(I)OILRIGHTS,(II)"MINERALRIGHTS,(III)NATURALGASRIGHTS,(IV)RIGHTSTO ALLOTHER

HYDROCARBONSBYWHATSOEVERNAMEKNOWN,(V)GEOTHERMALHEATRIGHTSORGEOTHERMAL — SUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY,(VI)WATERRIGHTSANDCLAIMSOR RIGHTS " ITO WATERAND(VII)ALLPRODUCTSDERIVEDFROM ANYOF THEFOREGOING(COLLECTIVELY, "SUBSURFACE' RESOURCES")LOCATEDINOR UNDERTHATCERTAINREALPROPERTYSITUATEDINTHECOUNTYOF —R|VERS|DE,'STATE'OFCALIFORNIADESCRIBEDINEXHIBIT"A"ATTACHEDHERETOANDINCORPORATED HEREIN(THEI'PROPERTY"),TO' THEEXTENTSUCHSUBSURFACERESOURCESHAVENOTBEENPREVIOUSLY RESERVED;AND ,
'
’ ‘DIST’ ’ B.-THEPERPETUALRIGHTTO DRIL|.«;%5M|'NE, EXPLOREANDOPERATEFORANDPRODUCE,STOREANDREMOVE I
" "L7 " ANYOFTHESUBSURFACERESOURCESONR FROMTHEPROPERTY,INCLUDINGWITHOUTLIMITATIONTHE

RIGHTTO WHIPSTOCKORDIRECTIONALLYDRILLAND MINE,FROM LANDSOTHERTHANTHEPROPERTY, — WELLS,TUNNELSANDSHAFTSINTO,THROUGHOR ACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO

BOTTOMSUCHWHIPSTOCKEDOR DIRECTIONALLYDRILLED WELLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL,RETUNNEL,EQUIP, MAINTAIN,REPAIR,-

IDEEPENANDOPERATEANYSUCHWELLSOR MINES,BUTWITHOUTTHERIGHTTO DRILL,MINE,EXPLORE,

OPERATE,PRODUCE,STOREOR REMOVEANYOFTHESUBSURFACERESOURCESTHROUGHOR INTHE SURFACEOFTHEPROPERTY.ORTHEUPPERFIVEHUNDRED(500) FEETOF THESUBSURFACEOFTHE PROPERTY.)
PARCEL6: (APN'S:667-100-029,031 AND038; 667-120-051,052, 025 THROUGH027) TENTATIVE(TRACT)MAP32030-5,BEINGA SUBDIVISIONOFTHEFOLLOWINGDESCRIBED PROPERTY:

PARCELNO. 1
THESOUTHWEST1/4OF SECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST,SANBERNARDINO

BASEANDMERIDIAN,STATEOF CALIFORNIA, ACCORDINGTO THEOFFICIALGOVERNMENTPLAT THEREOF.

Item Number: 2.

EXCEPTINGTHEREFROMTHE EAST1/2OF THESOUTHWESTI/4.

ALSOEXCEPTINGTHEREFROMTHEEAST1/2OF THENORTHEAST1/4OF THENORTHWEST1/4OF THESOUTHWEST1/4OFSAID SECTION.

ALSOEXCEPTINGTHEREFROMTHESOUTHERLY40 FEETCONVEYEDTO THE COUNTYOF RIVERSIDEBYDEEDFILEDFORRECORDJULY26, 1949 AS INSTRUMENTNO. 3081 OF OFFICIAL RECORDSOF RIVERSIDECOUNTY,CALIFORNIA.

ALSOEXCEPTINGTHEREFROMANYPORTIONLYINGWITHINTRACT32030-1 AS SHOWNON FILE IN BOOK404, PAGES67 THROUGH75, OF MAPS,RECORDSOF RIVERSIDECOUNTY,CALIFORNIA.

ALSOEXCEPTINGTHEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC., A COLORADOCORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2006, AS INSTRUMENTNO. 2006-0756951 OF OFFICIALRECORDSOF SAID COUNTY.SAIDINTERESTIS FURTHERDESCRIBED AS FOLLOWS:

A. ANYANDALL(I)OILRIGHTS,(II)MINERALRIGHTS,(III)NATURALGASRIGHTS,(IV)RIGHTSTO ALLOTHER , HYDROCARBONSBYWHATSOEVERNAMEKNOWN,(V)GEOTHERMALHEATRIGHTSORGEOTHERMAL

SUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY,(VI)WATERRIGHTSANDCLAIMSOR RIGHTS TOWATERAND(VII)ALLPRODUCTSDERIVEDFROMANYOF THEFOREGOING(COLLECTIVELY, "SUBSURFACE I RESOURCES")LOCATEDINOR UNDERTHATCERTAINREALPROPERTYSITUATEDINTHECOUNTYOF .. RIVERSIDE,.STATE OF.CALIFORNIADESCRIBEDIN EXHIBIT"A"ATTACHEDHERETOANDINCORPORATED "?5—HEREIN(THE-5'PROP—ERTYII),TO—THE EXTENTSUCHSUBSURFACERESOURCESHAVENOTBEENPREVIOUSLY RESERVED; AND
f B.THE PERPETUALRIGHTTOIDRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,STOREANDREMOVE :ANYOFTHESUBSURFACERESOURCESON OR FROMTHEPROPERTY,INCLUDINGWITHOUTLIMITATIONTHE 7 RIGHTTO WHIPSTOCKORDIRECTIONALLYDRILLANDMINE,FROMLANDSOTHERTHANTHEPROPERTY, — -WEI.—L'S, TUNNELSANDSHAFTSINTO,THROUGHORACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO ' BOTTOMSUCHWHIPSTOCKEDOR DIRECTIONALLYDRILLED WELLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL, RETUNNEL,EQUIP, MAINTAIN,REPAIR,

DEEPENANDOPERATEANYSUCH,WELLS OR MINES,BUTWITHOUTTHERIGHTTO DRILL,MINE,EXPLORE, ' OPERATE,’ PRODUCE,’ STOREOR REMOVEANYOFTHESUBSURFACERESOURCESTHROUGHOR INTHE SURFACE.OFTHEPROPERTYOR THEUPPERFIVEHUNDRED(500) FEETOF THESUBSURFACEOFTHE PROPERTY.)
PARCELNO. 2:

I * THEEAST‘/2OF THE--SOUTHWEST1/4,ANDTHEEAST‘/2OF THENORTHEAST‘/4OF THE NORTHWEST‘/4 OFTHESOUTHWEST‘/4OF SECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST,

SANBERNARDINOBASEANDMERIDIAN, STATE OF CALIFORNIA, ACCORDINGTO THEOFFICIAL GOVERNMENTPLATTHEREOF.

EXCEPTINGTHEREFROMTHESOUTHERLY40 FEETAS CONVEYEDTO THECOUNTYOFRIVERSIDE, BY DEEDRECORDEDJULY26, 1949 AS INSTRUMENTNO. 3081 OF OFFICIALRECORDSOF RIVERSIDECOUNTY,CALIFORNIA.

ALSOEXCEPTINGTHEREFROMANYPORTIONLYINGWITHINTRACT32030-1 AS SHOWNON FILE IN BOOK404, PAGES67 THROUGH75, OF MAPS,RECORDSOF RIVERSIDECOUNTY,CALIFORNIA.

ALSOEXCEPTINGTHEREFROMANYPORTIONLYINGWITHINTRACT32030-3 AS SHOWNON FILE IN BOOK419, PAGES29 THROUGH39, OF MAPS,RECORDSOF RIVERSIDECOUNTY,CALIFORNIA.

ALSOEXCEPTINGTHEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC.,A COLORADOCORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2006, AS INSTRUMENTNO. 2006-0756951 OF OFFICIALRECORDSOF SAIDCOUNTY.SAIDINTERESTIS FURTHERDESCRIBED AS FOLLOWS:

Item Number: 2.

A. ANYANDALL(I)OILRIGHTS,(II)MINERALRIGHTS,(III)NATURALGASRIGHTS,(IV)RIGHTSTO ALLOTHER

HYDROCARBONSBYWHATSOEVERNAMEKNOWN,(V)GEOTHERMALHEATRIGHTSORGEOTHERMAL

SUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY,(VI)WATERRIGHTSANDCLAIMSOR RIGHTS TO WATERAND(VII)ALLPRODUCTSDERIVEDFROMANYOFTHEFOREGOING(COLLECTIVELY, "SUBSURFACE RESOURCES")LOCATEDINOR UNDERTHATCERTAINREALPROPERTYSITUATEDINTHECOUNTYOF RIVERSIDE, STATEOF CALIFORNIADESCRIBEDINEXHIBIT"A"ATTACHEDHERETOANDINCORPORATED HEREIN(THE"PROPERTY"),TOTHEEXTENTSUCHSUBSURFACERESOURCESHAVENOTBEENPREVIOUSLY RESERVED;AND
B. THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREVAND OPERATEFORANDPRODUCE,STOREANDREMOVE

ANYOFTHESUBSURFACERESOURCESON OR FROMTHEPROPERTY,INCLUDINGWITHOUTLIMITATIONTHE

RIGHTTO WHIPSTOCKORDIRECTIONALLYDRILLANDMINE,FROM LANDSOTHERTHANTHEPROPERTY,

WELLS,TUNNELSANDSHAFTSINTO,THROUGHORACROSSTHESUBSURFACEOF THEPROPERTY,ANDTO

BOTTOMSUCHWHIPSTOCKEDORDIRECTIONALLYDRILLED WELLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHEEXTERIOR LIMITSOFTHE PROPERTY,ANDTO REDRILL,RETUNNEL,EQUIP,MAINTAIN,REPAIR,

DEEPENANDOPERATEANYSUCHWELLSOR MINES,BUTWITHOUTTHERIGHTTO DRILL,MINE,EXPLORE,

OPERATE,PRODUCE,STOREOR REMOVEANYOFTHESUBSURFACERESOURCESTHROUGHOR INTHE SURFACEOFTHEPROPERTYOR THEUPPERFIVEHUNDRED(500) FEETOFTHESUBSURFACEOFTHE PROPERTY.)
PARCEL3:
7 THAT, PORTION-OFJTHE_EAS7F1/2OF SECTION29, TOWNSHIP2 SOUTH,RANGE4 WEST,SAN ’BERNARDINO’BASEAND?MERIDIAN, STATE OF CALIFORNIA, ACCORDINGTO THEOFFICIAL GOVERNMENTPLATTHEREOF.'
COMMENCINGATCTHESOUTHEASTCORNEROF SAIDSECTION29; THENCENORTHERLYALONG THE EASTERLYBOUNDARY..OF.SAIDSECTION29, A DISTANCEOF 906 FEETTO THETRUEPOINT 1 OF BEGINNING;,THENCE WESTERLYANDPARALLELTHESOUTHERLYBOUNDARYOF SAIDSECTIONA T F 29, ADISTANCEJOF528 FEETTHENCENORTHERLYANDPARALLELWITHTHEEASTERLY BOUNDARYCOF SAIDSECTION-29,A DISTANCEOF 577 FEET;THENCEEASTERLYANDPARALLEL WITHTHESOUTHERLYBOUNDARYOF SAIDSECTION29, A DISTANCEOF 528 FEETTO THE E ’ EASTERLYBOUNDARYOF SAIDSECTION29; THENCESOUTHERLYALONGTHEEASTERLY A I IIBOUNDARYOFQSAIDTSECTION 29,’A DISTANCEOF 577 FEETTO THETRUEPOINTOF BEGINNING. 'ALSO§EXCEP_TING THEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC., A COLORADOCORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2006,AS INSTRUMENTNO.

I 2007640756951OF OFFICIALRECORDSOF SAIDCOUNTY.SAIDINTEREST IS FURTHERDESCRIBED AS FOLLOWS:

AIANYANDALL(I)OILRIGHTS,(II)MINERALRIGHTS,(III)NATURALGASRIGHTS,(IV)RIGHTSTO ALLOTHER

HYDROCARBONSBYWHATSOEVERNAMEKNOWN,(V)GEOTHERMALHEATRIGHTSORGEOTHERMAL

SUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY,(VI)WATERRIGHTSANDCLAIMSOR RIGHTS 'TO,WAT,ER,AND (VII)ALLPRODUCTSDERIVEDFROMANYOF THEFOREGOING(COLLECTIVELY, "SUBSURFACE " RESOURCES")LOCATEDINOR UNDERTHATCERTAINREALPROPERTYSITUATEDINTHECOUNTYOF RIVERSIDE, STATEOFCALIFORNIADESCRIBEDINEXHIBIT"A"ATTACHEDHERETOANDINCORPORATED HEREIN(THE"PROPERTY"),TOTHEEXTENTSUCHSUBSURFACERESOURCESHAVENOTBEENPREVIOUSLY RESERVED;AND
B.THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,STOREANDREMOVE

ANYOFTHESUBSURFACERESOURCESON OR FROMTHEPROPERTY,INCLUDINGWITHOUTLIMITATIONTHE

RIGHTTO WHIPSTOCKOR DIRECTIONALLYDRILLANDMINE,FROM LANDSOTHERTHANTHEPROPERTY,

WELLS,TUNNELSANDSHAFTSINTO,THROUGHORACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO

BOTTOMSUCHWHIPSTOCKEDOR DIRECTIONALLYDRILLED WELLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL,RETUNNEL,EQUIP,MAINTAIN,REPAIR,

DEEPENANDOPERATEANYSUCHWELLSOR MINES,BUTWITHOUTTHERIGHTTO DRILL,MINE,EXPLORE,

OPERATE,
Item Number: 2.

PRODUCE,STOREOR REMOVEANYOFTHESUBSURFACERESOURCESTHROUGHOR IN THE SURFACEOFTHEPROPERTYORTHEUPPERFIVEHUNDRED(500) FEETOFTHESUBSURFACEOF THE PROPERTY.)
PARCELNO.4:

THE NORTH165 FEETOFTHEREALPROPERTYDESCRIBEDAS FOLLOWS:

THATPORTIONOF THEEAST1/2OF SECTION29, TOWNSHIP2 SOUTH,RANGE4 EAST,SAN

BERNARDINOBASEANDMERIDIAN,STATE OF CALIFORNIA, ACCORDINGTO THE OFFICIAL GOVERNMENTPLATTHEREOF.

COMMENCINGAT THESOUTHEASTCORNEROF SAID SECTION29; THENCENORTHERLYALONG THE EASTERLYBOUNDARYOF SAIDSECTION,A DISTANCEOF 329.0 FEETTO THETRUEPOINTOF BEGINNING;THENCEWESTERLYANDPARALLELWITHTHESOUTHBOUNDARYOF SAIDSECTION, A DISTANCEOF 528.0 FEET;THENCENORTHERLYANDPARALLELWITHTHEEASTERLYBOUNDARY OF SAIDSECTION, A DISTANCEOF 577.0 FEET;THENCEEASTERLYANDPARALLELWITHTHE SOUTHBOUNDARYOFSAID SECTIONA DISTANCEOF 528.0 FEET;THENCESOUTHERLYALONG THE EASTERLYBOUNDARYOF SAIDSECTION,A DISTANCEOF 577.0 FEETTO THETRUEPOINTOF BEGINNING.

ALSOEXCEPTINGTHEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC., A COLORADOCORPORATION BY’-DOCUMENTRECORDEDOCTOBER13, 2006, AS INSTRUMENTNO. *1...;;20’06:0756951:OF.;OEEICIALfREC©RDS OF SAIDCOUNTY.SAIDINTERESTIS FURTHERDESCRIBEDA AS FOLLOWS:

A.ANYANDALL(I)'OILRIGHTS,‘(II)MINERALRIGHTS,(III)NATURALGASRIGHTS,(IV)RIGHTSTO ALLOTHER ' WHYDROCARBONSBYWHATSOEVERNAMEKNOWN,(V)GEOTHERMALHEATRIGHTSORGEOTHERMAL SUBSTANCESTHAT’MAYBEPRODUCEDFROMTHEPROPERTY,(VI)WATERRIGHTSANDCLAIMSOR RIGHTS TO WATERAND(VII)ALLPRODUCTSDERIVEDFROMANYOF THEFOREGOING(COLLECTIVELY, "SUBSURFACE, , RESOURCES")LOCATEDINOR UNDERTHATCERTAINREALPROPERTYASITUATED INTHEVCOUNTY OF ' 7 RIVERSIDE, STATEOF CALIFORNIADESCRIBEDIN EXHIBIT"A"ATTACHEDHERETOANDINCORPORATED "HEREIN(THE'"PROPERTY"),TOTHEEXTENTSUCHSUBSURFACERESOURCESHAVENOTBEENPREVIOUSLY RESERVED;AND
B.THEPERPETUALRIGHTTO ‘DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,STOREANDREMOVE 7 ANYOFTHESUBSURFACERSOURCESON OR FROM THEPROPERTY,INCLUDINGWITHOUTLIMITATIONTHE “RIGHT TO WHIPSTOCKORDIRECTIONALLYDRILLANDMINE,FROM LANDSOTHERTHANTHEPROPERTY,’

WELLS,TUNNELSANDSHAFTSINTO,THROUGHOR ACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO

BOTTOMSUCHWHIPSTOCKEDOR DIRECTIONALLYDRILLED WELLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL,RETUNNEL,EQUIP,MAINTAIN,REPAIR,

DEEPENANDOPERATEANYSUCHWELLSOR MINES,BUTWITHOUTTHERIGHTTO DRILL,MINE,EXPLORE,

OPERATE,PRODUCE,STOREOR REMOVEANYOFTHESUBSURFACERESOURCESTHROUGHOR INTHE SURFACEOFTHE PROPERTYOR THEUPPERFIVEHUNDRED(500) FEETOF THESUBSURFACEOFTHE PROPERTY.)
PARCELNO. 5:

THATPORTIONOF THEEAST‘/2OF SECTION29, TOWNSHIP2 SOUTH,RANGE4 EAST,SAN

BERNARDINOBASEANDMERIDIAN, STATEOF CALIFORNIA, ACCORDINGTO THEOFFICIAL

GOVERNMENTPLATTHEREOF
COMMENCINGAT THESOUTHEASTCORNEROF SAIDSECTION29; THENCENORTHERLYALONG THE EASTERLYBOUNDARYOF SAIDSECTION29, A DISTANCEOF 329 FEETTO THETRUEPOINT OF BEGINNING;THENCEWESTERLYANDPARALLELWITHSOUTHERLYBOUNDARYOF SAID SECTION29, A DISTANCEOF 528 FEET;THENCENORTHERLYANDPARALLELWITHTHEEASTERLY BOUNDARYOF SAIDSECTION29, A DISTANCEOF 577 FEET;THENCEEASTERLYANDPARALLEL WITHTHESOUTHERLYBOUNDARYOF SAIDSECTION29, A DISTANCEOF 528 FEET;THENCE Item Number: 2.

SOUTHERLYANDALONGTHEEASTERLYBOUNDARYOF SAIDSECTION29, A DISTANCEOF 577 FEETTO THETRUE POINTOF BEGINNING.

EXCEPTINGTHEREFROMTHENORTH165 FEETTHEREOF.

ALSOEXCEPTINGTHEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC.,A COLORADOCORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2006, AS INSTRUMENTNO. 2006-0756951 OF OFFICIALRECORDSOF SAIDCOUNTY.SAIDINTERESTIS FURTHERDESCRIBED AS FOLLOWS:

A. ANYANDALL(I)OILRIGHTS,(II)MINERALRIGHTS,(III)NATURALGASRIGHTS,(IV)RIGHTSTO ALLOTHER

HYDROCARBONSBYWHATSOEVERNAMEKNOWN,(V)GEOTHERMALHEATRIGHTSORGEOTHERMAL

SUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY,(VI)WATERRIGHTSANDCLAIMSOR RIGHTS TO WATERAND(VII)ALLPRODUCTSDERIVEDFROMANYOFTHEFOREGOING(COLLECTIVELY, "SUBSURFACE RESOURCES")LOCATEDINORUNDERTHATCERTAINREALPROPERTYSITUATEDINTHECOUNTYOF RIVERSIDE, STATEOFCALIFORNIADESCRIBEDINEXHIBIT"A"ATTACHEDHERETOANDINCORPORATED HEREIN(THE"PR'OPERTY"),TOTHEEXTENTSUCHSUBSURFACERESOURCESHAVENOTBEENPREVIOUSLY RESERVED;AND
B.THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,STOREANDREMOVE

ANYOF,THE SUBSURFACERESOURCESON OR FROMTHEPROPERTY,INCLUDINGWITHOUTLIMITATIONTHE 'RIGHTTO WHIPSTOCKORDIRECTIONALLYDRILLANDMINE,FROM LANDSOTHERTHANTHEPROPERTY, . WELLS,TUNNELSANDSHAFTSTINTO, THROUGHORACROSSTHESUBSURFACEOF THEPROPERTY,ANDTO BOTTOMSUC'H,WH|PSTOCKED'—OR DIRECTIONALLYDRILLED WELLS,TUNNELSANDSHAFTSWITHINOR ' I‘‘BEYONDTHE‘EXTER|OR’L|M|TS'OF’THE PROPERTY,ANDTO REDRILL,RETUNNEL,EQUIP, MAINTAIN,REPAIR,

DEEPENANDOPERATEANYSUCHWELLSOR MINES,BUTWITHOUTTHERIGHTTO DRILL,MINE,EXPLORE,

I OPERATE,PRODUCE,STOREOR REMOVEANYOFTHESUBSURFACERESOURCESTHROUGHOR INTHE SURFACEOFTHE-PROPERTYORTHE UPPERFIVEHUNDRED(500) FEETOF THESUBSURFACEOFTHE PROPERTY.) '
PARCELNO. 6:

THAT PORTIONTOFTHEEAST1/2OF SECTION29, TOWNSHIP2 SOUTH,RANGE4 EAST,SAN , BERNARDINOBASEANDMERIDIAN,STATE OF CALIFORNIA, ACCORDINGTO THEOFFICIAL GOVERNMENTPLATTHEREOF.
7’ COMMENCINGEATITHEI SOUTHTEAST’ CORNEROF SAIDSECTION29; THENCEWESTERLYALONGTHE A I
I SOUTHERLYBOUNDARYOFSAIDSECTION29, A DISTANCEOF 528 FEETTO THETRUEPOINTOF ’ “BEGINNING; THENCECONTINUINGWESTERLYALONGTHE SAIDSOUTHERLYBOUNDARYOF SAID ~SECTION929,A’DISTANCEOF 528 FEET;THENCENORTHERLYANDPARALLELWITHTHE EASTERLYA ” BOUNDARYOF SAIDSECTION29, A DISTANCEOF 2640 FEET;THENCEEASTERLYANDPARALLEL 6 WITHTHESOUTHERLYBOUNDARYOF SAIDSECTION29, A DISTANCEOF 528 FEET;THENCE SOUTHERLYANDPARALLELWITHTHEEASTERLYBOUNDARYOF SAIDSECTION29, A DISTANCE2 OF 2640 FEETTO THETRUEPOINT OF BEGINNING.

ALSOEXCEPTINGTHEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC., A COLORADOCORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2006, AS INSTRUMENTNO. 2006-0756951 OF OFFICIALRECORDSOF SAIDCOUNTY.SAIDINTERESTIS FURTHERDESCRIBED AS FOLLOWS:

A. ANYANDALL(I)OILRIGHTS,(II)MINERALRIGHTS,(III)NATURALGASRIGHTS,(IV)RIGHTSTO ALLOTHER

HYDROCARBONSBYWHATSOEVERNAMEKNOWN,(V)GEOTHERMALHEATRIGHTSORGEOTHERMAL

SUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY,(VI)WATERRIGHTSANDCLAIMSORRIGHTS TO WATERAND(VII)ALLPRODUCTSDERIVEDFROMANYOF THEFOREGOING(COLLECTIVELY, "SUBSURFACE RESOURCES")LOCATEDINOR UNDERTHATCERTAINREALPROPERTYSITUATEDINTHECOUNTYOF RIVERSIDE,STATEOF CALIFORNIADESCRIBEDIN EXHIBIT"A"ATTACHEDHERETOANDINCORPORATED HEREIN(THE"PROPERTY"),TOTHE EXTENTSUCHSUBSURFACERESOURCESHAVENOTBEENPREVIOUSLY RESERVED;AND
Item Number: 2.

* i'—TiCOLORADOCORPORATIONBY DOCUMENTRECORDEDOCTOBER13, 2006, AS INSTRUMENTNO.

B.THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,STOREANDREMOVE

ANYOFTHESUBSURFACERESOURCESON ORFROMTHEPROPERTY,INCLUDINGWITHOUTLIMITATIONTHE

RIGHTTO WHIPSTOCKOR DIRECTIONALLYDRILLANDMINE,FROM LANDSOTHERTHANTHEPROPERTY,

WELLS,TUNNELSANDSHAFTSINTO,THROUGHORACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO

BOTTOMSUCHWHIPSTOCKEDOR DIRECTIONALLYDRILLED WLLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL,RETUNNEL, EQUIP,MAINTAIN,REPAIR,

DEEPENANDOPERATEANYSUCHWELLSOR MINES,BUTWITHOUTTHERIGHTTO DRILL,MINE,EXPLORE,

OPERATE,PRODUCE,STOREORREMOVEANYOF THESUBSURFACERESOURCESTHROUGHOR INTHE SURFACEOFTHEPROPERTYORTHEUPPERFIVEHUNDRED(500) FEETOF THESUBSURFACEOFTHE PROPERTY.)
PARCEL7: (APN'S:667-080-006;667-100-029,031 AND038; 667-120-051,052 AND024) TENTATIVE(TRACT)MAP32030-6,BEINGASUBDIVISIONOF THEFOLLOWINGDESCRIBED PROPERTY:

PARCELNO. 1: I
‘ ’
’”
THESOUTH1/2OF:THENORTHWEST1/4OF SECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST,SAN

BERNARDINOBASE ANDMERIDIAN, STATE OF CALIFORNIA, ACCORDINGTO THEOFFICIAL GOVERNMENTPLATTHEREOF. -
6‘-;’i7’5’T—"—57 "IT‘”TTALSO?EXCEPTING‘ THEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC.,A 2006-0756951“OFOFFICIALRECORDSOF SAIDCOUNTY.SAIDINTERESTIS FURTHERDESCRIBED AS FOLLOWS:

V
- A. ANYANDALL(I)OILRIGHTS,—'(|I) MINERALRIGHTS,(III)NATURALGASRIGHTS,(IV)RIGHTSTO ALLOTHER

HYDROCARBONS BYWHATSOEVERNAMEKNOWN,(V)GEOTHERMALHEATRIGHTSORGEOTHERMAL

JSUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY,(VI)WATERRIGHTSANDCLAIMSORRIGHTS ,, TO WATERAND(VI|),ALLPRODUCTSDERIVEDFROMANYOFTHEFOREGOING(COLLECTIVELY, "SUBSURFACE RESOURCES")LOCATEDINOR UNDERTHATCERTAINREALPROPERTYSITUATEDINTHECOUNTYOF RIVERSIDE,'STATE OF CALIFORNIADESCRIBEDIN EXHIBIT"A"ATTACHEDHERETOANDINCORPORATED ‘" ' "_'"HEREIN(THE,','PROPERTY"),’TO'THE EXTENTSUCHSUBSURFACERESOURCES HAVENOTBEENPREVIOUSLY RESERVED; AND
B.THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,STOREANDREMOVE

ANYOFTHESUBSURFACERESOURCESON ORFROMTHEPROPERTY,INCLUDINGWITHOUTLIMITATIONTHE

RIGHTTOWHIPSTOCKOR DIRECTIONALLYDRILLANDMINE,FROM LANDSOTHERTHANTHEPROPERTY,' WELLS,TUNNELSANDSHAFTSINTO,THROUGHORACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO BOTTOMSUCHWHIPSTOCKEDORDIRECTIONALLYDRILLED WELLS,TUNNELSANDSHAFTSWITHINORV_ BEYONDTHEEXTERIORLIMITSOF THEPROPERTY,ANDTO REDRILL,RETUNNEL,EQUIP,MAINTAIN,REPAIR,

DEEPENANDOPERATEANYSUCHWELLSOR MINES,BUTWITHOUTTHERIGHTTO DRILL,MINE,EXPLORE, OPERATE,—PRODUCE, STOREORREMOVEANYOF THESUBSURFACERESOURCESTHROUGHOR INTHE SURFACEOFTHEPROPERTYORTHE UPPERFIVEHUNDRED(500) FEETOFTHESUBSURFACEOFTHE PROPERTY.)
PARCELNO. 2:

THESOUTHWEST1/4OF SECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST,SANBERNARDINO

BASEANDMERIDIAN, STATEOF CALIFORNIA,CCORDINGTO THEOFFICIALGOVERNMENTPLAT THEREOF.

EXCEPTINGTHEREFROMTHEEAST1/2OFTHESOUTHWEST‘/4.

ALSOEXCEPTINGTHEREFROMTHE EAST1/2OF THENORTHEAST1/4OFTHENORTHWEST‘/4OF Item Number: 2.

THESOUTHWEST1/4OF SAIDSECTION.

ALSOEXCEPTINGTHEREFROMTHESOUTHERLY40 FEETCONVEYEDTO THECOUNTYOF RIVERSIDEBYDEEDFILEDFORRECORDJULY26, 1949 AS INSTRUMENTNO. 3081 OF OFFICIAL RECORDSOF RIVERSIDECOUNTY,CALIFORNIA.

EXCEPTINGTHEREFROMANYPORTIONLYINGWITHINTRACT32030-1 ASSHOWNON FILEIN BOOK404 PAGES67 THROUGH75 OF MAPS,RECORDSOF RIVERSIDECOUNTY,CALIFORNIA.

ALSOEXCEPTINGTHEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC.,A COLORADOCORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2006, AS INSTRUMENTNO. 2006-0756951OF OFFICIALRECORDSOF SAIDCOUNTY.SAIDINTERESTIS FURTHERDESCRIBED AS FOLLOWS:

A. ANYANDALL(I)OILRIGHTS,(II)MINERALRIGHTS,(III)NATURALGASRIGHTS,(IV)RIGHTSTO ALLOTHER

I HYDROCARBONSBYWHATSOEVERNAMEKNOWN,(V)GEOTHERMALHEATRIGHTSORGEOTHERMAL

SUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY,(VI)WATERRIGHTSANDCLAIMSOR RIGHTS TO WATERAND(VII)ALLPRODUCTSDERIVEDFROMANYOFTHEFOREGOING(COLLECTIVELY, "SUBSURFACE RESOURCES")LOCATEDINOR UNDERTHATCERTAINREALPROPERTYSITUATEDINTHECOUNTYOF RIVERSIDE, STATEOFCALIFORNIADESCRIBEDINEXHIBIT"A"ATTACHEDHERETOANDINCORPORATED HEREIN(THE"PROPERTY"),TOTHEEXTENTSUCHSUBSURFACERESOURCESHAVENOTBEENPREVIOUSLY RESERVED; AND
" B.——'THE'PERPvE—,TUAL RIGHTTO DRILL—,—' MINE,EXPLOREANDOPERATEFORANDPRODUCE,STOREANDREMOVE ' "1 ”A'NY’OF;'|‘HESUBSURFA’CE’RES'OURCES ON OR FROMTHEPROPERTY,INCLUDINGWITHOUTLIMITATIONTHE RIGHTTO WHIPSTOCKOR.DIRECTIONALLYDRILLANDMINE,FROMLANDSOTHERTHANTHEPROPERTY, WELLS,TUNNELSANDSHAFTSINTO,THROUGHOR ACROSSTHESUBSURFACEOF THEPROPERTY,ANDTO

BOTTOMSUCHWHIPSTOCKEDORDIRECTIONALLYDRILLED WELLS,TUNNELSANDSHAFTSWITHINOR BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL,RETUNNEL, EQUIP,MAINTAIN,REPAIR, I ’ ‘DEEPENANDOPERATEANYSUCHWELLSOR MINES,BUTWITHOUTTHERIGHTTO DRILL,MINE,EXPLORE, OPERATE,PRODUCE,STOREOR REMOVEANYOFTHESUBSURFACERESOURCES THROUGHOR INTHE SURFACEOFTHEPROPERTYORTHEUPPERFIVEHUNDRED(500) FEETOFTHESUBSURFACEOFTHE PROPERTY.)
PARCELNO. 3:

F
I ’THE‘E’AST7‘/27 OFTHE SOUTHWEST1/4,ANDTHEEAST1/2OF THENORTHEAST‘/4OF THE — NORTHWEST1/4OFTHESOUTHWEST1/4OF SECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST, SANBERNARDINOBASEANDMERIDIAN, STATEOFCALIFORNIA, ACCORDINGTOTHEOFFICIAL GOVERNMENTPLATTHEREOF. —
EXCEPTINGTHEREFROMTHESOUTHERLY40 FEETASCONVEYEDTO THECOUNTYOFRIVERSIDE BYDEEDRECORDEDJULY26, 1949 AS INSTRUMENTNO. 3081 OF OFFICIALRECORDSOF RIVERSIDECOUNTY,CALIFORNIA.

I
EXCEPTINGTHEREFROMANYPORTIONLYINGWITHINTRACT32030-1 AS SHOWNON FILEIN BOOK404 PAGES67 THROUGH75 OF MAPS,RECORDSOF RIVERSIDECOUNTY,CALIFORNIA.

ALSOEXCEPTINGTHEREFROMANYPORTIONLYINGWITHINTRACT32030-3 AS SHOWNON FILE IN BOOK419 PAGES29 THROUGH39 OF MAPS,RECORDSOF RIVERSIDECOUNTY,CALIFORNIA.

ALSOEXCEPTINGTHEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC.,A COLORADOCORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2006,AS INSTRUMENTNO. 2006-0756951OF OFFICIALRECORDSOF SAIDCOUNTY.SAIDINTERESTIS FURTHERDESCRIBED AS FOLLOWS:

A. ANYANDALL(I)OILRIGHTS,(II)MINERALRIGHTS,(III)NATURALGASRIGHTS,(IV)RIGHTSTO ALLOTHER

HYDROCARBONSBYWHATSOEVERNAMEKNOWN,(V)GEOTHERMALHEATRIGHTS Item Number: 2.

OR GEOTHERMALSUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY,(VI)WATER

RIGHTSANDCLAIMSOR RIGHTSTO WATERAND(VII) ALLPRODUCTSDERIVEDFROMANYOF THEFOREGOING(COLLECTIVELY, "SUBSURFACERESOURCES")LOCATEDIN OR UNDERTHAT

CERTAINREALPROPERTYSITUATEDINTHECOUNTYOF RIVERSIDE, STATE OF CALIFORNIA DESCRIBEDIN EXHIBIT"A"ATTACHEDHERETOANDINCORPORATEDHEREIN(THE"PROPERTY"), TO THEEXTENTSUCHSUBSURFACERESOURCESHAVENOTBEENPREVIOUSLYRESERVED; AND B. THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,STOREANDREMOVE

ANYOFTHESUBSURFACERESOURCESON OR FROMTHEPROPERTY,INCLUDINGWITHOUTLIMITATIONTHE

RIGHTTO WHIPSTOCKOR DIRECTIONALLYDRILLANDMINE,FROM LANDSOTHERTHANTHEPROPERTY,

WELLS,TUNNELSANDSHAFTSINTO,THROUGHORACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO

BOTTOMSUCHWHIPSTOCKEDOR DIRECTIONALLYDRILLED WELLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHEEXTERIORLIMITSOF THEPROPERTY,ANDTO REDRILL,RETUNNEL,EQUIP,MAINTAIN,REPAIR,

DEEPENANDOPERATEANYSUCHWELLSOR MINES,BUTWITHOUTTHERIGHTTO DRILL,MINE,EXPLORE,

OPERATE,PRODUCE,STOREOR REMOVEANYOF THESUBSURFACERESOURCESTHROUGHOR INTHE SURFACEOF THEPROPERTYORTHEUPPERFIVEHUNDRED(500) FEETOF THESUBSURFACEOFTHE PROPERTY.)
PARCELNO. 4:

THATPORTIONOFTHEEAST1/2OF SECTION29, TOWNSHIP2 SOUTH,RANGE3 EAST,SAN _ _BERNARDINO BASEANDMERIDIAN, STATE OF CALIFORNIA, ACCORDINGTO THEOFFICIAL GOVERNMENTPLATTHEREOF.
"1 "’V*COMMENCINGATTTHESOUTHEAST CORNEROF SAIDSECTION29; THENCENORTHERLYALONG I, THELEASTERLYBOUNDARY OF SAIDSECTION29, A DISTANCEOF 1483 FEETTO THETRUEPOINT 5 OF.BEGINNING;THENCEWESTERLYANDPARALLELWITHTHESOUTHERLYBOUNDARYOF SAID SECTION29, A DISTANCEOF 528 FEET;THENCENORTHERLYANDPARALLELWITHTHEEASTERLY BOUNDARYOFSAIDSECTION29, A DISTANCEOF 577 FEET;THENCEEASTERLYLANDPARALLEL WITHTHEPSOUTHERLYBOUNDARYOF SAIDSECTION29, A DISTANCEOF 528 FEETTO THE F ._
I ,3 EASTERLYBOUNDARYOF SAIDSECTION29; THENCESOUTHERLY ALONGTHEEASTERLY BOUNDARYOFSAIDSECTION-29,A DISTANCEOF 577 FEETTO THETRUEPOINTOF BEGINNING. ‘
’ ALSOEXCEPTINGTHEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC.,A .COLORADOCORPORATION-BY. DOCUMENTRECORDEDOCTOBER13, 2006, AS INSTRUMENT7 20056307756951; OF OFFICIALFRECORDS OF SAIDCOUNTY.SAIDINTERESTIS FURTHERDESCRIBED 3 AS FOLLOWS: A
’
A. ANYANDALL(I)OILRIGHTS,(II)MINERALRIGHTS,(III)NATURALGASRIGHTS,(IV)RIGHTSTO ALLOTHER — HYDROCARBONSBYWHATSOEVERNAMEKNOWN,(V)GEOTHERMALHEATRIGHTSORGEOTHERMAL

SUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY,(VI)WATERRIGHTSANDCLAIMSOR RIGHTS ' TO WATERAND(VII)ALLPRODUCTSDERIVEDFROMANYOFVTHE FOREGOING(COLLECTIVELY, "SUBSURFACE RESOURCES")LOCATEDIN OR UNDERTHATCERTAINREALPROPERTYSITUATEDINTHECOUNTYOF RIVERSIDE,STATEOFCALIFORNIADESCRIBEDIN EXHIBIT"A"ATTACHEDHERETOANDINCORPORATED HEREIN(THE"PROPERTY"),TOTHEEXTENTSUCHSUBSURFACERESOURCESHAVENOTBEENPREVIOUSLY RESERVED; AND '
B. THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,STOREANDREMOVE

ANYOFTHESUBSURFACERESOURCESON OR FROMTHEPROPERTY,INCLUDINGWITHOUTLIMITATIONTHE

RIGHTTO WHIPSTOCKOR DIRECTIONALLYDRILLANDMINE,FROM LANDSOTHERTHANTHEPROPERTY,

WELLS,TUNNELSANDSHAFTSINTO,THROUGHORACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO

BOTTOMSUCHWHIPSTOCKEDOR DIRECTIONALLYDRILLED WELLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL, RETUNNEL,EQUIP, MAINTAIN,REPAIR,

DEEPENANDOPERATEANYSUCHWELLSOR MINES,BUTWITHOUTTHERIGHTTO DRILL,MINE,EXPLORE,

OPERATE,PRODUCE,STOREOR REMOVEANYOF THESUBSURFACERESOURCESTHROUGHOR INTHE SURFACEOFTHEPROPERTYORTHEUPPERFIVEHUNDRED(500) FEETOF THESUBSURFACEOFTHE PROPERTY.)
Item Number: 2.

PARCELNO. 5:

THATPORTIONOF THEEAST‘/2OF SECTION29, TOWNSHIP2 SOUTH,RANGE4 EAST,SAN

BERNARDINOBASEANDMERIDIAN, STATE OF CALIFORNIA, ACCORDINGTO THEOFFICIAL GOVERNMENTPLATTHEREOF.

COMMENCINGAT THESOUTHEASTCORNEROFSAIDSECTION29; THENCEWESTERLYALONGTHE SOUTHERLYBOUNDARYOF SAIDSECTION29, A DISTANCEOF 528 FEETTO THETRUEPOINTOF BEGINNING;THENCECONTINUINGWESTERLYALONGTHESAID SOUTHERLYBOUNDARYOF SAID SECTION29, A DISTANCEOF 528 FEET;THENCENORTHERLYANDPARALLELWITHTHEEASTERLY BOUNDARYOF SAIDSECTION29, A DISTANCEOF 2640 FEET;THENCEEASTERLYANDPARALLEL I WITHTHESOUTHERLYBOUNDARYOF SAIDSECTION29, A DISTANCEOF 528 FEET;THENCE SOUTHERLYANDPARALLELWITHTHE EASTERLYBOUNDARYOF SAIDSECTION29, A DISTANCE OF 2640 FEETTO THETRUEPOINTOF BEGINNING.

ALSOEXCEPTINGTHEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC.,A I COLORADOCORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2006, AS INSTRUMENTNO. 2006-0756951OF OFFICIALRECORDSOF SAIDCOUNTY.SAIDINTERESTIS FURTHERDESCRIBED AS FOLLOWS: .
,A. ANYANDALL(I)OILRIGHTS,(II)MINERALRIGHTS,(III)NATURALGASRIGHTS,(IV)RIGHTSTO ALLOTHER

QIHYDROCARBONSBYWHATSOEVERNAMEKNOWN,(V)GEOTHERMALHEATRIGHTSORGEOTHERMAL fi"SUBSTANCESTHAT;'MA9Y'BE7PRODUCEDFROMTHEPROPERTY,(VI)WATERRIGHTSANDCLAIMSOR RIGHTS - ,’TO"WATER7AND”(V||)‘A|jI; PRODUCTSDERIVEDFROMANYOF THEFOREGOING(COLLECTIVELY, "SUBSURFACE, ‘ ” ‘I
T» RESOURCES")LOCATEDINOR UNDERTHATCERTAINREALPROPERTYSITUATEDINTHECOUNTYOF , RIVERSIDE, STATEOF.CALIFORNIADESCRIBEDIN EXHIBIT"A"ATTACHEDHERETOANDINCORPORATED HEREIN(THE"PROPERTY"),TOTHEEXTENTSUCHSUBSURFACERESOURCESHAVENOTBEENPREVIOUSLY RESERVED; AND
A '17 .B. THEPERPETUALRIGHTFTODRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,STOREANDREMOVE

ANYOFTHESUBSURFACERESOURCESON OR FROMTHEPROPERTY,INCLUDINGWITHOUTLIMITATION THE . , RIGHTTO WHIPSTOCKOR DIRECTIONALLYDRILLANDMINE,FROMLANDSOTHERTHANTHEPROPERTY, ,
' WELLS,TUNNELSANDSHAFTSINTO,THROUGHOR ACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO , ',BO'I'|'OM SUCHWHIPSTOCKEDORDIRECTIONALLYDRILLED WELLS,TUNNELSANDSHAFTSWITHINOR BEYONDTHEEXTERIORLIMITSOF THEPROPERTY,ANDTO REDRILL, RETUNNEL, EQUIP,MAINTAIN,-REPAIR, DEEIPENANDOPERATEANYSUCHWELLSOR MINES,BUTWITHOUTTHERIGHTTO DRILL,MINE,EXPLORE, " OPERATE,PRODUCE,STOREORREMOVEANYOF THESUBSURFACERESOURCESTHROUGHOR INTHE SURFACEOFTHE PROPERTYORTHEUPPERFIVEHUNDRED(500) FEETOFTHESUBSURFACEOF THE PROPERTY.) '
PARCEL8: (APN'S:667-080-002THROUGH004 AND006)
TENTATIVE(TRACT)MAP32030-7,BEINGA SUBDIVISIONOFTHEFOLLOWINGDESCRIBED PROPERTY:

PARCELNO. 1
THATPORTIONOFTHENORTHWEST‘/4OF THENORTHWEST‘/4OF SECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST,SANBERNARDINOBASEANDMERIDIAN, STATEOF CALIFORNIA, ACCORDINGTO THEOFFICIALGOVERNMENTPLATTHEREOF.

BEGINNINGAT THESOUTHEASTCORNEROFTHENORTHWEST‘/4OF THENORTHWEST1/4,OF SAIDSECTION;THENCEWESTERLY, ON THESOUTHLINEOF SAIDNORTHWEST‘/4OFTHE NORTHWEST‘/4980.5 FEET,TO THEEASTLINEOFTHATCERTAIN60 FOOT ROADKNOWNAS 29 PALMSHIGHWAY;THENCENORTH23° 01' 13" EASTONTHENORTHLINEOF SAIDSECTION 390.71 FEETTO THENORTHEASTCORNEROF THENORTHWEST‘/4_OFTHENORTHWEST1/4OF SAIDSECTION;THENCESOUTH0° 09' 30" EAST,ON THEEASTLINEOF THESAIDNORTHWESTI/4 Item Number: 2.

OF THE NORTHWEST1/4OF SAID SECTION,1380.18 FEET,TO THE POINTOF BEGINNING.

EXCEPTINGTHEREFROMONE HALFOF ALLOIL,GASANDOTHERHYDROCARBONSUBSTANCES UNDERLYINGSAIDLANDAND‘/2OF ALLOTHERMINERALS, AS RESERVEDIN DEEDFROMJOSEPH R. TROT|'ER, HUSBANDANDWIFEFILEDFORRECORDMARCH30, 1955 AS BOOK1715 PAGE 572 OF OFFICIALRECORDSOF SAID COUNTY.

SAID PROPERTYIS ALSOSHOWNAS PARCEL2, 3 AND4 ON RECORDOF SURVEYON FILEIN BOOK 27 PAGE65 OF RECORDSOF SURVEY,RECORDSOF RIVERSIDECOUNTY,CALIFORNIA.

ALSOEXCEPTINGTHEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC., A COLORADOCORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2006,AS INSTRUMENTNO. 2006~O756951OF OFFICIALRECORDSOF SAIDCOUNTY.SAIDINTERESTIS FURTHERDESCRIBED AS FOLLOWS:
,, A.,ANY ANDALL(I)OILRIGHTS,(II)MINERALRIGHTS,(III)NATURALGASRIGHTS,(IV)RIGHTSTO ALLOTHER ' HYDROCARBONS BYWHATSOEVERNAMEKNOWN,(V)GEOTHERMALHEATRIGHTSORGEOTHERMAL

SUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY,(VI)WATERRIGHTSANDCLAIMSOR RIGHTS TO WATERAND(VII)ALLPRODUCTSDERIVEDFROMANYOF THEFOREGOING(COLLECTIVELY, "SUBSURFACE RESOURCES")LOCATEDIN OR UNDERTHATCERTAINREALPROPERTYSITUATEDINTHECOUNTYOF RIVERSIDE, STATEOF CALIFORNIADESCRIBEDIN EXHIBIT"A"ATTACHEDHERETOANDINCORPORATED HEREIN(THE"PROPERTY"),TOTHEEXTENTSUCHSUBSURFACERESOURCESHAVENOTBEENPREVIOUSLY RESERVED;AND '7‘ '1‘"*‘f7'T‘?“4TB."THE’PERPETUAL—RIGHT‘TO,DR|LL}MINE, EXPLOREANDOPERATEFORANDPRODUCE, STOREANDREMOVE ' ANYOFTHESUBSURFACERESOURCESON ORFROMTHEPROPERTY,INCLUDINGWITHOUTLIMITATIONTHE RIGHTTO WHIPSTOCKOR DIRECTIONALLYDRILLANDMINE,FROMLANDSOTHERTHANTHEPROPERTY, WELLS,'TUNNELSANDSHAFTSINTO,THROUGHORACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO_ ' BOTTOMSUCHWHIPSTOCKEDOR DIRECTIONALLYDRILLED WELLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHEEXTERIORLIMITSOF THEPROPERTY,ANDTO REDRILL, RETUNNEL,EQUIP,MAINTAIN,REPAIR, I
’ DEEPENANDOPERATEANYSUCHWELLSOR MINES,BUTWITHOUTTHERIGHTVTODRILL,(MINE,EXPLORE, : OPERATE,PRODUCE,STOREOR REMOVEANYOF THESUBSURFACERESOURCESTHROUGHOR INTHE SURFACEOFTHEPROPERTYORTHEUPPERFIVEHUNDRED(500) FEETOF THESUBSURFACEOF THE PROPERTY.)
PARCELNO. 2
’ FTHEIISOUTH1/2OF THENORTHWEST‘/4OF SECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST,SAN BERNARDINO BASEANDMERIDIAN, STATEOF CALIFORNIA,CCORDINGTO THEOFFICIAL GOVERNMENTPLATTHEREOF.

ALSOEXCEPTINGTHEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC., A . COLORADOCORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2006, AS INSTRUMENTNO. 2006-0756951OF OFFICIALRECORDSOF SAIDCOUNTY.SAIDINTERESTIS FURTHERDESCRIBED AS FOLLOWS:

A. ANYANDALL(I)OILRIGHTS,(II)MINERALRIGHTS,(III)NATURALGASRIGHTS,(IV)RIGHTSTO ALLOTHER

HYDROCARBONSBYWHATSOEVERNAMEKNOWN,(V)GEOTHERMALHEATRIGHTSORGEOTHERMAL

SUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY,(VI)WATERRIGHTSANDCLAIMSOR RIGHTS TO WATERAND(VII)ALLPRODUCTSDERIVEDFROM ANYOFTHEFOREGOING(COLLECTIVELY, "SUBSURFACE

RESOURCESV) LOCATEDINOR UNDERTHATCERTAINREALPROPERTYSITUATEDINTHECOUNTYOF RIVERSIDE, STATEOF CALIFORNIADESCRIBEDIN EXHIBIT"A"ATTACHEDHERETOANDINCORPORATED HEREIN(THE"PROPERTY"),TOTHEEXTENTSUCHSUBSURFACERESOURCESHAVENOTBEENPREVIOUSLY RESERVED; AND
B.THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,STOREAND

REMOVEANYOFTHESUBSURFACERESOURCESON OR FROMTHEPROPERTY,INCLUDINGWITHOUT

LIMITATIONTHERIGHTTO WHIPSTOCKOR DIRECTIONALLYDRILLANDMINE,FROM Item Number: 2.

LANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,THROUGHOR ACROSS

THESUBSURFACEOFTHEPROPERTY,ANDTO BOTTOMSUCHWHIPSTOCKEDOR DIRECTIONALLY

DRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR BEYONDTHEEXTERIORLIMITSOF THE

PROPERTY,ANDTO REDRILL,RETUNNEL, EQUIP,MAINTAIN, REPAIR,DEEPENANDOPERATEANY

SUCHWELLSOR MINES,BUTWITHOUTTHERIGHTTO DRILL,MINE,EXPLORE,OPERATE, PRODUCE,STOREOR REMOVEANYOF THESUBSURFACERESOURCESTHROUGHOR IN THE SURFACEOF THEPROPERTYORTHE UPPERFIVEHUNDRED(500) FEETOF THE SUBSURFACEOF THEPROPERTY.)
PARCEL9: (APN'S: 667-080-O06AND007)
TENTATIVE(TRACT)MAP32030-8,BEINGA SUBDIVISIONOF THE FOLLOWINGDESCRIBED PROPERTY:

PARCELNO. 1
THENORTHEAST‘/4OF THENORTHWEST‘/4ANDTHENORTH‘/2OF THENORTHEAST‘/4OF SECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST,SANBERNARDINOBASEANDMERIDIAN, STATE - OF CALIFORNIA, ACCORDINGTO THEOFFICIALGOVERNMENTPLATTHEREOF.

EXCEPTINGTHEREFROMANYPORTIONLYINGWITHINTRACT32030-10AS SHOWNONFILEIN BOOK419PAGES40 THROUGH47 OF MAPS,RECORDSOF RIVERSIDECOUNTY,CALIFORNIA.

ALSOEXCEPTINGITHEREEROM ALLTHATINTEREST CONVEYEDTO DRHENERGY,INC.,A ‘“GOLORADOICORPORATION-‘BY‘DOCUMENT RECORDEDOCTOBER13, 2006, AS INSTRUMENTNO. 2006-0756951OF OFFICIALRECORDSOF SAIDCOUNTY.SAIDINTERESTIS FURTHERDESCRIBED AS FOLLOWS: I
' A; ANYANDALL(I)OILRIGHTS,(II)MINERALRIGHTS,(III)NATURALGASRIGHTS,(IV)RIGHTSTO ALLOTHER 7 -HYDROCARBONS BYWHATSOEVERNAMEKNOWN,(V)GEOTHERMAL HEATRIGHTSORGEOTHERMAL

SUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY,(VI)WATERRIGHTSANDCLAIMSOR RIGHTS 7 ' TOrWATER'AND’(VII)'ALL PRODUCTSDERIVEDFROMANYOFTHEFOREGOING(COLLECTIVELY, "SUBSURFACE RESOURCES")LOCATEDINOR UNDERTHATCERTAINREALPROPERTYSITUATEDINTHECOUNTYOF , ?R|VERSIDE,—STATEOFCALIFORNIADESCRIBEDINEXHIBIT"A"ATTACHEDHERETOANDINCORPORATED HEBE|N_(THE",PROPERTY"),TOTHEEXTENTSUCHSUBSURFACERESOURCESHAVENOT BEENPREVIOUSLY RESERVED; AND
-—B. THEPERPETUALRIGHTTO DRILL,’MINE, EXPLOREANDOPERATEFORANDPRODUCE,STOREANDREMOVE —ANYOFTHESUBSURFACERSOURCESON OR FROMTHEPROPERTY,INCLUDINGWITHOUTLIMITATIONTHE

RIGHTTO WHIPSTOCKOR DIRECTIONALLYDRILLANDMINE,FROMLANDSOTHERTHANTHEPROPERTY, WELLS,TUNNELSANDSHAFTSINTO,THROUGHORACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO

BOTTOMSUCHWHIPSTOCKEDOR DIRECTIONALLYDRILLED WELLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL,RETUNNEL, EQUIP,MAINTAIN,REPAIR, DEEPENANDOPERATEANYSUCHWELLSOR MINES,BUTWITHOUTTHERIGHTTO DRILL,MINE,EXPLORE, OPERATE,PRODUCE, STOREOR REMOVEANYOF THESUBSURFACERESOURCESTHROUGHOR INTHE SURFACEOFTHEPROPERTYORTHEUPPERFIVEHUNDRED(500) FEETOF THESUBSURFACEOFTHE PROPERTY.)
PARCELNO. 2:

THESOUTH‘/21OF THENORTHWEST‘/4OF SECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST,SAN

BERNARDINOBASEANDMERIDIAN, STATEOF CALIFORNIA, ACCORDINGTO THEOFFICIAL GOVERNMENTPLATTHEREOF.

ALSOEXCEPTINGTHEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC.,A COLORADOCORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2006,AS INSTRUMENTNO. 2006-0756951OF OFFICIALRECORDSOF SAIDCOUNTY.SAIDINTERESTIS FURTHERDESCRIBED AS FOLLOWS:

Item Number: 2.

A. ANYANDALL(I)OILRIGHTS,(II)MINERALRIGHTS,(III)NATURALGASRIGHTS,(IV)RIGHTSTO ALLOTHER

HYDROCARBONSBYWHATSOEVERNAMEKNOWN,(V)GEOTHERMALHEATRIGHTSORGEOTHERMAL

SUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY,(VI)WATERRIGHTSANDCLAIMSOR RIGHTS TO WATERAND(VII)ALLPRODUCTSDERIVEDFROMANYOF THEFOREGOING(COLLECTIVELY, "SUBSURFACE RESOURCES")LOCATEDIN OR UNDERTHATCERTAINREALPROPERTYSITUATEDINTHECOUNTYOF RIVERSIDE, STATEOF CALIFORNIADESCRIBEDINEXHIBIT"A"ATTACHEDHERETOANDINCORPORATED HEREIN(THE"PROPERTY"),TOTHEEXTENTSUCHSUBSURFACERESOURCESHAVENOTBEENPREVIOUSLY RESERVED;AND
B. THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,STOREANDREMOVE

ANYOFTHESUBSURFACERESOURCESON OR FROMTHEPROPERTY,INCLUDINGWITHOUTLIMITATIONTHE

RIGHTTO WHIPSTOCKOR DIRECTIONALLYDRILLANDMINE,FROM LANDSOTHERTHANTHEPROPERTY, WELLS,TUNNELSANDSHAFTSINTO,THROUGHOR ACROSSTHESUBSURFACEOF THEPROPERTY,ANDTO

BOTTOMSUCHWHIPSTOCKEDOR DIRECTIONALLYDRILLED WELLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL, RETUNNEL, EQUIP,MAINTAIN,REPAIR, DEEPENANDOPERATEANYSUCHWELLSORMINES,BUTWITHOUTTHERIGHTTO DRILL,MINE,EXPLORE, '7 " OPERATE,PRODUCE,STOREOR REMOVEANYOFTHESUBSURFACERESOURCESTHROUGHOR INTHE SURFACEOF THEPROPERTYORTHEUPPERFIVEHUNDRED(500) FEETOF THESUBSURFACEOFTHE PROPERTY.)
~ PARCEL10: (APN'S:667-080-002THROUGH004, 006 AND007)
" ;
' OffI’TEN'LAIIVE:(TRAU)TMAP
PROPERTY:
32030-9,BEINGA SUBDIVISION
‘ OF THEFOLLOWINGDESCRIBED
PARCELNO. 1
z THATPORTIONOF THENORTHWEST‘/4OFTHENORTHWEST‘/4OF SECTION28, TOWNSHIP2 ‘ :SOUTH,RANGE54EAST,'SANBERNARDINOBASEANDMERIDIAN, STATEOFCALIFORNIA, ' ACCORDINGTO THE OFFICIALGOVERNMENTPLATTHEREOF.

BEGINNINGAT THESOUTHEASTCORNEROFTHENORTHWEST‘/4OFTHENORTHWEST1/4,OF , SAID’SECTION;.THENCELWESTERLY, ONTHESOUTHLINEOF SAIDNORTHWEST‘/4OF THE ,, NORTHWEST-I/4 9.80.5FEET,-ITOTHEEASTLINEOFTHATCERTAIN60 FOOTROADKNOWNAS29 I - PALMSHIGHWAY;;THENCE NORTH23° 01' 13" EASTONTHENORTHLINEOF SAIDSECTION I .3 ,7
T 390.71 FEETITO/THENORTHEASTCORNEROFTHE NORTHWEST1/4OFTHENORTHWEST‘/4OF SAIDSECTION;THENCESOUTH70° 09' 30" EAST,ONTHEEASTLINEOFTHESAIDNORTHWEST1/4 OF THENORTHWEST1/4OF SAIDSECTION,1380.18 FEET,TO THEPOINTOF BEGINNING. , EXCEPTINGTHEREFROMONEHALFOF ALLOIL,GASANDOTHERHYDROCARBONSUBSTANCES UNDERLYINGSAID LANDAND1/2OFALLOTHERMINERALS, AS RESERVEDIN DEEDFROMJOSEPH R.TROTFER,HUSBANDANDWIFEFILEDFORRECORDMARCH30, 1955 AS BOOK1715 PAGE572 OF OFFICIALRECORDSOF SAIDCOUNTY.

ALSOTEXCEPTINGTHEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC.,A COLORADOCORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2006, AS INSTRUMENTNO. 2006-0756951OF OFFICIALRECORDSOF SAIDCOUNTY.SAIDINTERESTIS FURTHERDESCRIBED AS FOLLOWS:

A.ANYANDALL(I)OILRIGHTS,(II)MINERALRIGHTS,(III)NATURALGASRIGHTS,(IV)RIGHTSTO ALLOTHER

HYDROCARBONSBYWHATSOEVERNAMEKNOWN,(V)GEOTHERMALHEATRIGHTSORGEOTHERMAL

SUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY,(VI)WATERRIGHTSANDCLAIMSORRIGHTS TO WATERAND(VII)ALLPRODUCTSDERIVEDFROMANYOFTHEFOREGOING(COLLECTIVELY, "SUBSURFACE RESOURCES")LOCATEDIN OR UNDERTHATCERTAINREALPROPERTYSITUATEDINTHECOUNTYOF RIVERSIDE, STATEOF CALIFORNIADESCRIBEDINEXHIBIT"A"ATTACHEDHERETOANDINCORPORATED HEREIN(THE"PROPERTY"),TOTHEEXTENTSUCHSUBSURFACERESOURCESHAVENOTBEENPREVIOUSLY RESERVED; AND
Item Number: 2.

B. THE PERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,STOREANDREMOVE

ANYOF THESUBSURFACERESOURCESON OR FROMTHEPROPERTY,INCLUDINGWITHOUTLIMITATIONTHE

RIGHTTO WHIPSTOCKORDIRECTIONALLYDRILLANDMINE,FROMLANDSOTHERTHANTHEPROPERTY,

WELLS,TUNNELSANDSHAFTSINTO,THROUGHORACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO

BOTTOMSUCHWHIPSTOCKEDOR DIRECTIONALLYDRILLED WELLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHEEXTERIORLIMITSOF THEPROPERTY,ANDTO REDRILL,RETUNNEL,EQUIP,MAINTAIN,REPAIR,

DEEPENANDOPERATEANYSUCHWELLSOR MINES,BUTWITHOUTTHERIGHTTO DRILL,MINE,EXPLORE,

OPERATE,PRODUCE,STOREOR REMOVEANYOF THESUBSURFACERESOURCESTHROUGHOR INTHE SURFACEOFTHEPROPERTYORTHEUPPERFIVEHUNDRED(500) FEETOF THESUBSURFACEOF THE PROPERTY.)
SAID PROPERTYIS ALSOSHOWNAS PARCEL2, 3 AND4 ON RECORDOF SURVEYON FILEIN BOOK 27 PAGE 65 OF RECORDSOF SURVEY,RECORDSOF RIVERSIDECOUNTY,CALIFORNIA.

PARCELNO. 2
THENORTHEASTI/4FOFTHE NORTHWEST1/4ANDTHENORTH‘/2OF THENORTHEAST1/4OF SECTION28, TOWNSHIP2 SOUTH,’RANGE4 EAST,SANBERNARDINOBASEANDMERIDIAN, STATE 7OF CALIFORNIA, ACCORDINGTO THEOFFICIALGOVERNMENTPLATTHEREOF.

I
. EXCEPTINGLTHEREFROM ANYPORTIONLYINGWITHINTRACT32030-10 AS SHOWNON FILEIN LBOOK 419. PAGES40.THROUGH47 OF MAPS,RECORDSOF RIVERSIDECOUNTY,CALIFORNIA.

I ALSOEXCEPTINGTHEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC.,A COLORADOCORPORATION BYDOCUMENTRECORDEDOCTOBER13, 2006,AS INSTRUMENTNO. 2006=0756951OFOFFICIALRECORDS OF SAIDCOUNTY.SAID INTERESTIS FURTHERDESCRIBED AS FOLLOWS:

A. ANY.ANDALL’(|)OILRIGHTS,(II)MINERALRIGHTS,(III)NATURALGASRIGHTS,(IV)RIGHTSTO ALLOTHER » I

I HYDROCARBONSBYWHATSOEVERNAMEKNOWN,(V)GEOTHERMALHEATRIGHTSORGEOTHERMAL '
7 SUBSTANCESTHATMAYBEVPRODUCEDFROMTHEPROPERTY,(VI)WATERRIGHTSANDCLAIMSOR RIGHTS 'TO WATERAND(VII)ALLPRODUCTSDERIVEDFROMANYOF THEFOREGOING(COLLECTIVELY, "SUBSURFACE, RESOURCES")LOCATEDINORUNDERTHATCERTAINREALPROPERTYSITUATEDINTHECOUNTYOF RIVERSIDE,STATEOF CALIFORNIADESCRIBEDIN EXHIBIT"A"ATTACHEDHERETOANDINCORPORATED _ , .HERE|N (THE':'PROPERTY:5:‘),TO THEEXTENTSUCHSUBSURFACERESOURCESHAVENOTBEENPREVIOUSLY RESERVED;AND
' B.THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORAND PRODUCE,STOREAND REMOVE

ANYOFTHESUBSURFACEVRESOURCES ON OR FROMTHEPROPERTY,INCLUDINGWITHOUTLIMITATIONTHE

RIGHTTO WHIPSTOCKOR DIRECTIONALLYDRILLAND MINE,FROMLANDSOTHERTHANTHEPROPERTY, 'WELLS,TUNNELSANDSHAFTSINTO,THROUGHORACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO " ' BOTTOM SUCHWHIPSTOCKEDOR DIRECTIONALLYDRILLED WELLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL,RETUNNEL,EQUIP,MAINTAIN,REPAIR,

DEEPENANDOPERATEANYSUCHWELLSOR MINES,BUTWITHOUTTHERIGHTTO DRILL,MINE,EXPLORE,

OPERATE,PRODUCE,STOREOR REMOVEANYOF THESUBSURFACERESOURCESTHROUGHORINTHE SURFACEOFTHEPROPERTYORTHEUPPERFIVEHUNDRED(500) FEETOFTHESUBSURFACEOFTHE PROPERTY.)
PARCELNO. 3
THESOUTH‘/2OF THENORTHWEST‘/4OF SECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST,SAN

BERNARDINOBASEANDMERIDIAN, STATEOF CALIFORNIA, ACCORDINGTO THEOFFICIAL GOVERNMENTPLATTHEREOF.

ALSOEXCEPTINGTHEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC.,A COLORADOCORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2006,AS INSTRUMENTNO.

Item Number: 2.

2006-0756951 OF OFFICIALRECORDSOF SAIDCOUNTY.SAID INTERESTIS FURTHERDESCRIBED AS FOLLOWS:

A. ANYANDALL(I)OILRIGHTS,(II)MINERALRIGHTS,(III)NATURALGASRIGHTS,(IV)RIGHTSTO ALLOTHER

HYDROCARBONSBYWHATSOEVERNAMEKNOWN,(V)GEOTHERMALHEATRIGHTSORGEOTHERMAL

SUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY,(VI)WATERRIGHTSANDCLAIMSOR RIGHTS = TO WATERAND(VII)ALLPRODUCTSDERIVEDFROMANYOFTHEFOREGOING(COLLECTIVELY, "SUBSURFACE RESOURCES")LOCATEDINOR UNDERTHATCERTAINREALPROPERTYSITUATEDINTHECOUNTYOF RIVERSIDE, STATEOF CALIFORNIADESCRIBEDINEXHIBIT"A"ATTACHEDHERETOANDINCORPORATED HEREIN(THE"PROPERTY"),TOTHEEXTENTSUCHSUBSURFACERESOURCESHAVENOT BEENPREVIOUSLY RESERVED;AND
B. THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,STOREANDREMOVE

ANYOFTHESUBSURFACERESOURCESON OR FROMTHEPROPERTY,INCLUDINGWITHOUTLIMITATIONTHE

RIGHTTO WHIPSTOCKORDIRECTIONALLYDRILLANDMINE,FROM LANDSOTHERTHANTHEPROPERTY,

WELLS,TUNNELSANDSHAFTSINTO,THROUGHOR ACROSSTHESUBSURFACEOF THEPROPERTY,ANDTO

BOTTOMSUCHWHIPSTOCKEDOR DIRECTIONALLYDRILLED WELLS,TUNNELSANDSHAFTSWITHINOR —.BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL,RETUNNEL,EQUIP,MAINTAIN,REPAIR,

DEEPENANDOPERATEANYSUCHWELLSOR MINES,BUTWITHOUTTHERIGHTTO DRILL,MINE,EXPLORE, ,,.OPERATE,PRODUCE,STOREOR REMOVEANYOFTHESUBSURFACERESOURCESTHROUGHOR INTHE SURFACEOFTHEPROPERTYORTHEUPPERFIVEHUNDRED(500) FEETOFTHESUBSURFACEOFTHE PROPERTY.
—:-"TLPARCEI:11~1::—(APN'S:-667:300-055510,.667-300-056-1, 667-300-057-2,667-310-085-8,677-310-086-9, ---:—Z6773’310-T087-0,"677-3201027-7,-677-320-028-8, 677-320-079-4,667-330-O14-6,667-330-073-9,667- 330-074-0 AND667-330-075-1)
LE'I'I,'ERED_LOTSA, B,C, F,’G, H, I, J, K,L,MANDNOF TRACTNO. 32030-3 AS SHOWNON BYMAPS ON FILEINBOOK419 PAGES29 THROUGH39 OF MAPS,RECORDSOF RIVERSIDECOUNTY, CALIFORNIA.

EXCEPTINGTHEREFROM:
- A. ANY'AND,ALL(I)OIL-RIGHTS, (II)MINERALRIGHTS,(III)NATURALGASRIGHTS,(IV)RIGHTSTO ALLOTHER -
' HYDROCARBONSBYWHATSOEVERNAMEKNOWN,(V)GEOTHERMALHEATRIGHTSORGEOTHERMAL , , Z',’S'UBSTANCES,THATMAYBE,PRODUCED FROMTHEPROPERTY,(VI)WATERRIGHTSANDCLAIMSOR RIGHTS . TO WATERAND(VI|)'ALLPRODUCTS"'DERIVED FROMANYOF THEFOREGOING(COLLECTIVELY, "SUBSURFACE RESOURCES")LOCATEDINOR UNDERTHATCERTAINREALPROPERTYSITUATEDINTHECOUNTYOF RIVERSIDE, STATEOF CALIFORNIADESCRIBEDINEXHIBIT"A"INDEEDRECORDEDOCTOBER13, 2006 AS INSTRUMENTNO. 2006- 0756951 OF OFFICIAL(THE"PROPERTY"), TO THEEXTENTSUCHSUBSURFACE RESOURCESHAVENOT BEENPREVIOUSLYRESERVED;AND
B.THEPERPETUALRIGHTTOIDRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,STOREANDREMOVE

ANYOFTHESUBSURFACERESOURCESON OR FROMTHEPROPERTY,INCLUDINGWITHOUTLIMITATIONTHE

RIGHTTOWHIPSTOCKOR DIRECTIONALLYDRILLAND MINE,FROM LANDSOTHERTHANTHEPROPERTY, , WWELLS, TUNNELSANDSHAFTSINTO,THROUGHOR ACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO

BOTTOMSUCHWHIPSTOCKEDORDIRECTIONALLYDRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL, RETUNNEL, EQUIP, MAINTAIN,REPAIR,

DEEPENANDOPERATEANYSUCHWELLSOR MINES,BUTWITHOUTTHERIGHTTO DRILL,MINE,EXPLORE,

OPERATE,PRODUCE,STOREOR REMOVEANYOF THESUBSURFACERESOURCESTHROUGHORINTHE , SURFACEOFTHEPROPERTYORTHEUPPERFIVEHUNDRED(500) FEETOFTHESUBSURFACEOFTHE PROPERTY.ASCONVEYEDINDEEDRECORDEDOCTOBER13, 2006 AS INSTRUMENTNO. 2006-0756951OF OFFICIALRECORDS.

PARCEL12: (APN'S:667-340-049-9,667-340-350-9,667-350-O75-3,667-350-O76-4,667-360-061-1, 667-360-062-2 AND667-360-063-3) Item Number: 2.

LETTEREDLOTSA THROUGHF OF TRACTNO.32030-10,AS SHOWNBYMAPON FILEIN BOOK419 PAGES40 THROUGH47 OF MAPS,RECORDSOF RIVERSIDECOUNTY,CALIFORNIA.

EXCEPTINGTHEREFROM:

A. ANYANDALL(I)OILRIGHTS,(II)MINERALRIGHTS,(III)NATURALGASRIGHTS,(IV)RIGHTSTO ALLOTHER

HYDROCARBONSBYWHATSOEVERNAMEKNOWN,(V)GEOTHERMALHEATRIGHTSORGEOTHERMAL

SUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY,(VI)WATERRIGHTSANDCLAIMSOR RIGHTS TO WATERAND(VII)ALLPRODUCTSDERIVEDFROM ANYOFTHEFOREGOING(COLLECTIVELY, "SUBSURFACE RESOURCES")LOCATEDINOR UNDERTHATCERTAINREALPROPERTYSITUATEDINTHECOUNTYOF RIVERSIDE, STATEOF CALIFORNIADESCRIBEDINEXHIBIT"A"INDEEDRECORDEDOCTOBER13, 2006 AS . INSTRUMENTNO. 2006- 0756951 OF OFFICIALRECORDS(THE"PROPERTY"), TO THEEXTENTSUCH SUBSURFACERESOURCESHAVENOTBEENPREVIOUSLYRESERVED; AND
- B.THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,STOREANDREMOVE

ANYOFTHESUBSURFACERESOURCESON OR FROMTHEPROPERTY,INCLUDINGWITHOUTLIMITATIONTHE

RIGHTTO WHIPSTOCKOR DIRECTIONALLYDRILLANDMINE,FROMLANDSOTHERTHANTHEPROPERTY,

I WELLS,TUNNELSANDSHAFTSINTO,THROUGHORACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO '

I BOTTOMSUCHWHIPSTOCKEDOR DIRECTIONALLYDRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR i BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL,RETUNNEL,EQUIP,MAINTAIN,REPAIR, '

I FDEEPENANDOPERATETANYSUCHWELLSOR MINES,BUTWITHOUTTHERIGHTTO DRILL,MINE,EXPLORE, '
. ‘Cf ‘I?7’T.T;"OPERATE', PRODUCE,"STOR‘E'OIR’REMOVE ANYOFTHESUBSURFACERESOURCESTHROUGHOR INTHE " 2 ' V ISURF'ACE’OF'THEPROPERTY*'ORTHEUPPERFIVEHUNDRED(500) FEETOF THESUBSURFACEOFTHE ' 'PROPERTYEASCONVEYED,IN DEEDRECORDEDOCTOBER13, 2006 AS INSTRUMENTNO. 2006-0756951 OF OFFICIALRECORDS. ’
PARCEL13: (APN:162—230-015AND162-230-O21)
. ,PARCEL——'.-'B'v' ASSHOWNONLOTLINEADJUSTMENT NO.LLA#19007, AS EVIDENCEDBY 3 1 *
‘ DOCUMENTRECORDEDMARCH12, 2020 AS INSTRUMENTNO. 2020-0115685OF OFFICIAL .

P . RECORDS,BEINGMOREPARTICULARLYDESCRIBEDAS FOLLOWS:
7’ THATPORTION‘OFLOT 3 OF TRACTNO. 36822, IN THECITYOFJURUPAVALLEY,COUNTYOF I
I TRIVERSIDE,STATE OF CALIFORNIA, AS PERMAPRECORDED IN BOOK465 OF MAPS,PAGES69 — — THROUGH73,-—INCLUSIV—E,1OF MAPS,IN THEOFFICEOF THECOUNTYRECORDEROF SAID I CO,UNTY,f LYINGWITHINSECTION27, TOWNSHIP2 SOUTH,RANGE6 WEST,S.B.M.,MORE PARTICULARLYDESCRIBEDAS FOLLOWS:

I ”BEGINNINGATTHENORTHEASTCORNEROF SAIDLOT3, SAIDPOINT BEINGONTHESOUTHERLY RIGHTOFWAYOF RANCHOJURUPADRIVE,HAVINGA HALFWIDTHOF 30.00 FEET,AS SHOWNON

SAIDMAP,SAIDPOINTALSOBEINGONA NONTANGENTCURVECONCAVETO THENORTHAND HAVINGA RADIUSOF 280.00 FEET,A RADIALLINEFROMSAIDPOINTBEARSNORTH08° 54’ 47" EAST;
THENCESOUTH00° 36’107”WEST;ALONGTHEEASTLINEOF SAID LOT3, A DISTANCEOF 516.44 FEET;
THENCESOUTH28° 46’ 32" WEST,A DISTANCEOF 49.89 FEETTO A POINTONTHESOUTHERLY LINEOFSAID LOT3, SAID POINTALSOBEINGONTHENORTHERLYRIGHTOF WAYOF EQUESTRIANWAY,HAVINGA HALFWIDTHOF 30.00 FEET,AS SHOWNONSAIDMAP; THENCENORTH61° 13’ 28" WEST,ALONGSAIDSOUTHERLYLINEOF SAIDLOT3, A DISTANCEOF

28.60 FEET;
THENCESOUTH31° 30’ 21" WEST,A DISTANCEOF 275.43 FEET;
Item Number: 2.

THENCESOUTH76° 56’ 11"WEST,A DISTANCEOF 35.62 FEET;
THENCENORTH57° 37’ 59" WEST,A DISTANCEOF 340.72 FEETTO THEBEGINNINGOF A TANGENTCURVECONCAVETO THENORTHEASTANDHAVINGA RADIUSOF 345.00 FEET; THENCENORTHWESTERLYALONGSAIDCURVE,ANARCDISTANCEOF 88.86 FEET,THROUGH ACENTRALANGLEOF 14° 45’ 26";
THENCENORTH72° 23' 25" WEST,A DISTANCEOF 496.61 FEETTO THE BEGINNINGOF A TANGENTCURVECONCAVETO THESOUTHANDHAVINGA RADIUSOF 845.00 FEET; THENCEWESTERLYALONGSAIDCURVE,ANARCDISTANCEOF 484.34 FEET,THROUGH CENTRALANGLEOF 32° 50’ 27";
THENCESOUTH749 46708"WEST,A DISTANCEOF 153.49 FEETTO THEBEGINNINGOF A TANGENTCURVECONCAVETO THESOUTHEASTANDHAVINGA RADIUSOF 670.00 FEET; THENCESOUTHWESTERLYALONGSAIDCURVE,ANARCDISTANCEOF1.51FEET,THROUGHA CENTRALANGLEOF 00° 07’44"; ’
THENCENORTH64°15’-42" WEST,A DISTANCEOF 19.83 FEETTO A POINTONTHEWEST * LINEOFSAID_.LOT'3,ISAID§iEOINT BEINGONTHEEASTRIGHTOF WAYOF BEACHSTREET, HAVINGA HALFWIDTHOF 28.00 FEET,AS SHOWNON SAIDMAP; * F THENCENORTH"15°’13'*52" WEST,A DISTANCEOF 80.36 FEETTO THEBEGINNINGOF A 7 I TANGENTCURVECONCAVETO THEEASTANDHAVINGA RADIUSOF 302.00 FEET; “ THENCENORTHERLYALONGSAIDCURVE,ANARCDISTANCEOF 294.47 FEET,THROUGHA ’ CENTRALANGLEOF 55° 52' 01'’ TO THEBEGINNINGOF A REVERSECURVECONCAVETO THE J NORTHWESTANDHAVINGA RADIUSOF 258.00 FEET,A RADIALLINEFROMSAIDPOINT BEARSNORTH49° 21’ 51" WEST;
'
* THENCENORTHERLYALONGSAIDCURVE,ANARCDISTANCEOF 170.77 FEET, THROUGHACENTRALANGLEOF 37° 55' 25";
THENCENORTH51° 01’.34”EAST,A DISTANCEOF 19.54 FEETTO A POINTONTHENORTH LINEOFSAID LOT 3, SAID POINTBEINGONTHESOUTHRIGHTOF WAYOF RANCHO JURUPADRIVE,HAVINGA HALFWIDTHOF 30.00 FEET,AS SHOWNONSAIDMAP; THENCESOUTH89° ,05' 29" EAST,ALONGSAIDNORTHLINE,A DISTANCEOF 1041.48 FEET TOTHE BEGINNINGOFATANGENTCURVECONCAVETO THESOUTHANDHAVINGA RADIUS3 OF 220.00 FEET;
THENCEEASTERLYALONGSAIDCURVE,ANARCDISTANCEOF 84.14 FEET,THROUGHA CENTRALANGLEOF 21° 54’ 51";
THENCESOUTH67° 10’38 EAST,A DISTANCEOF 57.56 FEETTO THEBEGINNINGOFA TANGENTCURVECONCAVETO THENORTHANDHAVINGA RADIUSOF 280.00 FEET; THENCESOUTHEASTERLYALONGSAIDCURVE,ANARCDISTANCEOF 67.98 FEET,THROUGHA CENTRALANGLEOF 13° 54’35”TO THEPOINTOF BEGINNING.

Item Number: 2.

PARCEL14: (APN: 162-220-019;162-220-020;162-220-021;162-230-010;162-230-011;162- 230-
012; 162-230-013;162-230-014AND162-230-016)
LOT4, 5, 6, 7, 8 AND9 OF TRACTNO. 36822, INTHECITYOFJURUPAVALLEY,COUNTYOF RIVERSIDE, STATE OF CALIFORNIA, AS PERMAPRECORDEDIN BOOK465 OF MAPS,PAGES 69THROUGH73, INCLUSIVE, OF MAPS,INTHEOFFICEOF THECOUNTYRECORDEROF SAID COUNTY.

Item Number: 2.

EXHIBIT “B”

MAP OF PROPERTY
A.i
‘PINTRSTATE do
M A
Item Number: 2.

EXHIBIT “C”

EXISTING DEVELOPMENTAPPROVALS
Final Environmental Impact Report (SCH# 2004061026),including Environmental Assessment No. 01-04 and associated CEQAFindings, Statements of Overriding Consideration, the Comments and Response Document, and Mitigation, Monitoring Program for the StoneRidge Specific Plan
General Plan Amendment No. 02-04
Zoning Map Amendment N0. 02-04
;‘,,s_';;:;.i:‘Specific Plan 0. 01=04, “The StoneRidge Specific Plan” Vesting Tentative Map No. 32030
Tentative Map No. 32029
Development Agreement No. 01-04
Item Number: 2.

EXHIBIT “D”

EXISTING LAND USE REGULATIONS
City of Desert Hot Springs Comprehensive General Plan, including all amendments up to and including General Plan Amendment No. 02-04
City of Desert Hot Springs Zoning Ordinance, Design Guidelines and Subdivision Ordinanceg including all amendments up to and including Zoning Map AmendmentNo. 02-04
Specific Plan N0. 01-04, “The StoneRidge Specific Plan” Item Number: 2.

EXHIBIT “E”

PERFORMANCE SCHEDULE
Date Performance Due Measured by
Anniversary Date of Recordation of First
Amendment to Development Agreement
5”‘Anniversary
10”‘Anniversary A
’ 15”‘Anniversary* ‘
" ——20‘?_An'niVersary:
-30?‘Anniversary “
-1
25“ Al’11’llVCI'S3.1‘y ’ E’ ’ V” " 7
"

3.5“:Anniversa_r’y1 < ,
40“ Anniversary ’r 7 1;
45“ Anniversary
Description of Cumulative Performance
Owner to have obtainedcerti?cates of
occupancy for at least 200 homes
Owner to have obtainedcerti?cates of
occupancy for at least400 homes
Owner to have obtainedcerti?cates of
occupancy for at least 600 homes
Owner to have obtainedcerti?cates of
occupancy for at least 800 homes
Owner to have obtainedcerti?catesof
occupancy for at least 1,000homes
Owner to have obtainedcerti?cates of
occupancy for at least 1,200 homes
Owner to have obtainedcertificatesof
occupancyfor at least 1,400 homes
Owner to have obtainedcerti?cates of
occupancy for at least 1,600homes
Owner to have obtainedcerti?cates of
occupancy for at least 1,746homes
Item Number: 2.

I2I
E
II
EXHIBIT“F”

SCHEDULE OF FEES APPLICABLE TO EXISTING DEVELOPMENTAPPROVALS AND SUBSEQUENTDEVELOPMENTAPPROVALS AMOUT
§ E — . QUIMBYACT- PARKLANDDEDICATIONFEE § 7 LAWENFORCEMENT FACILITIESIMPACTFEE F FIREPROTECTIONIMPACTFEE V ‘
V . LAWENFORCEMENTFACILITIESIMPACTFEE

GENERALFACILITIESIMPACTFEE

CIRCULATIONSYSTEMIMPAGEFEE
0 DU 0.00 $0.00
‘ 565.00 $161,590.00
583.00 $166,738.00

0.00 $0.00
699.00 $199.914.00
STORMDRAINAGE 4466.00 01.277.276.00 IMPAGT~FEE":’. .
‘ COMMUNIWCENTER “£293.00 $055,798.00 IMPAO'I'v,FEE‘. 1' PARKLAND . $293,722.00 IMPAGTFEE(1) ; L ' AQUATICCENTERIMPACT $633,204.00 FEE5' '-' ..
$54,626.00
BUILDING&SAFE]! DEBT.DEVELQPMENT IMPACTEEES 8SA$RF FEE(GREENFEE) ' 3' ' '"“ STRONGMOTIONIMPLEMENTATION PROGRAM- SMIP ARTINPUBLICPLACESFEE~ ' - 52.86000

31.30 $8,951.60
1205.00 $344,630.00
Item Number: 2.