Minutes — Desert Hot Springs City Council, August 9, 2023 (part 2 of 3)

ALSOEXCEPTINGTHEREFROMANYPORTTONLYINGWITHINTRACT32030-3 AS SHOWNON FILEINBOOK419 PAGES29 THROUGH39 OF MAPS,RECORDSOF RIVERSIDECOUNTY, CALIFORNIA.

ALSOEXCEPTINGTHEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC.,A COLORADOCORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2006, AS INSTRUMENT NO. Z006-0756951 OF OFFICIALRECORDSOF SAIDCOUNTY.SAIDINTERESTIS FURTHER DESCRIBEDAS FOLLOWS:

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

RIGHTSTO ALLOTHERHYDROCARBONSBYWHATSOEVERNAMEKNOWN,(V)GEOTHERMAL

STOREANDREMOVEANYOFTHE SUBSURFACERESOURCESONOR FROMTHEPROPERTY,

INCLUDINGWITHOUTLIMITATIONTHE RIGHTTO WHIPSTOCKOR DIRECTIONALLYDRILLAND

MINE,FROMLANDSOTHERTHANTHE PROPERTY,WELIS,TUNNELSANDSHAH'S INTO,

THROUGHOR ACROSSTHESUBSURFACEOF THEPROPERTY,ANDTO BOTTOMSUCH

WHIPSTOCKEDOR DIRECTIONALLYDRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHE EXTERIORLIMITSOF THE PROPERTY,ANDTO REDRILL,RETUNNEL,EQUIP,

MAINTAIN,REPAIR,DEEPENANDOPERATEANYSUCHWELLSOR MINES,BUTWITHOUTTHE

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

SUBSURFACERESOURCESTHROUGHOR IN THESURFACEOFTHE PROPERTYORTHEUPPER FIVEHUNDRED(500) FEETOFTHE SUBSURFACEOF THEPROPERTY.)
PARCELNO. 4:

THATPORTIONOF THEEAST‘/2OFSECTION29, TOWNSHIP2 SOUTH,RANGE3 EAST,SAN

BERNARDINOBASEANDMERIDIAN,STATEOFCALIFORNIA,ACCORDINGTO THEOFFICIAL GOVERNMENTPLATTHEREOF.

COMMENCINGAT THE SOUTHEASTCORNEROFSAID SECTION29; THENCENORTHERLY ALONGTHEEASTERLYBOUNDARYOF SAIDSECTION29, A DISTANCEOF 1483 FEETTO THE TRUE POINTOF BEGINNING;THENCEWESTERLYANDPARALLELWITHTHE SOUTHERLY BOUNDARYOF SAIDSECTION29, A DISTANCEOF 528 FEET;THENCENORTHERLYAND PARALLELWITHTHE EASTERLYBOUNDARYOF SAIDSECTION29, A DISTANCEOF 577 FEET; THENCEEASTERLYLANDPARALLELWITHTHE SOUTHERLYBOUNDARYOF SAIDSECTION29, A DISTANCEOF 528 FEETTO THE EASTERLYBOUNDARYOF SAIDSECTION29; THENCE SOUTHERLYALONGTHEBXSTERLYBOUNDARYOF SAIDSECTION29, A DISTANCEOF 577 FEETTO THETRUEPOINTOFBEGINNING.

A. ANYANDALL(I) OIL RIGHTS, (II) MINERALRIGHTS,(III) NATURALGASRIGHTS, (IV) 347/020269-0040
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RIGHTSTO ALLOTHERHYDROCARBONSBYWHATSOEVERNAMEKNOWN,(V) GEOTHERMAL

STOREANDREMOVEANYOFTHE SUBSURFACERESOURCESON OR FROMTHE PROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTO WHIPSTOCKOR DIRECTIONALLYDRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELS ANDSHAFTSINTO,

THROUGHORACROSSTHE SUBSURFACEOFTHEPROPERTY,ANDTO BOTTOMSUCH

WHIPSTOCKEDOR DIRECTIONALLYDRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHE EXTERIORLIMITSOFTHE PROPERTY,ANDTO REDRILL,RETUNNEL,EQUIP,

MAINTAIN,REPAIR,DEEPENANDOPERATEANYSUCHWELLSOR MINES,BUTWITHOUTTHE

RIGHTTO DRILL,MINE,EXPLORE,OPERATE,PRODUCE,STOREORREMOVEANYOF THE

SUBSURFACERESOURCESTHROUGHORIN THE SURFACEOFTHEPROPERTYORTHEUPPER FIVEHUNDRED(500) FEETOFTHESUBSURFACEOFTHE PROPERTY.)
PARCELNO. 5:

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

BERNARDINOBASEANDMERIDIAN,STATEOF CALIFORNIA,ACCORDINGTO THE OFFICIAL GOVERNMENTPLATTHEREOF.

COMMENCINGATTHE SOUTHEASTCORNEROF SAIDSECTION29; THENCEWESTERLYALONG THESOUTHERLYBOUNDARYOF SAIDSECTION29, A DISTANCEOF 528 FEETTO THETRUE POINTOF BEGINNING;THENCECONTINUINGWESTERLYALONGTHESAIDSOUTHERLY BOUNDARYOF SAIDSECTION29, A DISTANCEOF 528 FEET;THENCENORTHERLYAND PARALUELWITHTHEEASTERLYBOUNDARYOF SAIDSECTION29, A DISTANCEOF 2640 FEET; THENCEEASTERLYANDPARALLELWITHTHE SOUTHERLYBOUNDARYOF SAID SECTION29, A DISTANCEOF 528 FEET;THENCESOUTHERLYANDPARALLELWITHTHEEASTERLYBOUNDARY OF SAIDSECTION29, A DISTANCEOF 2640 FEETTO THETRUEPOINT OF BEGINNING.

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

RIGHTSTO ALLOTHERHYDROCARBONSBYWHATSOEVERNAMEKNOWN,(V) GEOTHERMAL

UNDERTHATCERTAINREALPROPERTYSITUATEDIN THECOUNTYOF RIVERSIDE,STATEOF CALIFORNIADESCRIBEDIN EXHIBIT“A"ATTACHEDHERETOANDINCORPORATEDHEREIN (THE "PROPERTY"),TO THE EXTENTSUCHSUBSURFACERESOURCESHAVENOTBEEN PREVIOUSLYRESERVED;AND
B. THE PERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,

STOREANDREMOVEANYOFTHESUBSURFACERESOURCESONOR FROMTHEPROPERTY, 367/020269-0040
1036916117a03/23/10 ‘I2’

Page 122 of 296 ends

INCLUDINGWITHOUTLIMITATIONTHERIGHTTO WHIPSTOCKORDIRECTIONALLYDRILLAND MINE,FROMLANDSOTHERTHANTHEPROPERTY,WEL|5, TUNNELSANDSHAFTSINTO,

THROUGHOR ACROSSTHESUBSURFACEOFTHE PROPERTY,ANDTO BOTTOMSUCH

WHIPSTOCKEDORDIRECTIONALLYDRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHE EXTERIORLIMITSOF THE PROPERTY,ANDTO REDRILL,RETUNNEL,EQUIP,

MAINTAIN,REPAIR,DEEPENANDOPERATEANYSUCHWELLSORMINES,BUTWITHOUTTHE

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

SUBSURFACERESOURCESTHROUGHORIN THESURFACEOF THE PROPERTYORTHEUPPER FIVEHUNDRED(500) FEETOFTHE SUBSURFACEOFTHEPROPERTY.)
PARCEL8: (APN'S: 667-080-002THROUGH004 AND006)
TENTATIVE(TRACT)MAP32030-7, BEINGA SUBDIVISIONOFTHEFOLLOWINGDESCRIBED PROPERTY:

PARCELNO. 1
THATPORTIONOF THE NORTHWEST‘/1OFTHENORTHWEST‘/3OF SECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST,SANBERNARDINOBASEANDMERIDIAN,STATEOFCALIFORNIA, ACCORDINGTO THEOFFICIALGOVERNMENTPLATTHEREOF.

BEGINNINGAT THESOUTHEASTCORNEROFTHE NORTHWEST‘/4 OFTHENORTHWEST‘/4,OF SAIDSECTION;THENCEWESTERLY,ONTHE SOUTHLINEOF SAIDNORTHWEST‘/4OF THE NORTHWEST‘/4 980.5 FEET, TO THEEASTLINEOFTHATCERTAIN60 FOOTROADKNOWNAS 29 PALMSHIGHWAY;THENCENORTH23" 01‘ 13" EASTON THENORTHLINEOF SAIDSECTION 390.71 FEETTO THENORTHEASTCORNEROFTHENORTHWEST‘/4 OFTHE NORTHWEST‘/4OF SAIDSECTION;THENCESOUTH0° 09' 30" EAST,ONTHE EASTLINEOFTHE SAID NORTHWEST‘/1OFTHENORTHWEST‘/4OF SAIDSECTION,1380.18 FEET,TO THEPOINTOF BEGINNING.

EXCEPTINGTHEREFROMONE HALFOF ALLOIL,GASANDOTHERHYDROCARBONSUBSTANCES UNDERLYINGSAIDLANDAND‘/2OF ALLOTHERMINERALS,AS RESERVEDIN DEEDFROM JOSEPHR. TROTTER,HUSBANDANDWIFEFILEDFORRECORDMARCH30, 1955ASBOOK1715 PAGE572 OF OFFICIALRECORDSOFSAIDCOUNTY.

SAIDPROPERTYIS ALSOSHOWNASPARCEL2, 3 AND4 ON RECORDOF SURVEYON FILEIN BOOK27 PAGE65 OF RECORDSOF SURVEY,RECORDSOF RIVERSIDECOUNTY,CALIFORNIA.

ALSOEXCEP'TINGTHEREFROMALLTHATINTERESTCONVEYEDTO DRH ENERGY,INC., A COLORADOCORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2006, AS INSTRUMENT NO.2006-0756951OF OFFICIALRECORDSOF SAIDCOUNTY.SAIDINTERESTIS FURTHER DESCRIBEDAS FOLLOWS:

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

RIGHTSTO ALLOTHERHYDROCARBONSBYWHATSOEVERNAMEKNOWN,(V) GEOTHERMAL

UNDERTHATCERTAINREALPROPERTYSITUATEDIN THECOUNTYOF RIVERSIDE,STATEOF CALIFORNIADESCRIBEDIN EXHIBIT"A"ATTACHEDHERHO ANDINCORPORATEDHEREIN (THE "PROPERTY"),TO THEEXTENTSUCHSUBSURFACERESOURCESHAVENOT BEEN PREVIOUSLYRESERVED;AND
347/020269»0O40 ,1
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Page 123 of 296 ends

B. THE PERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,

STOREANDREMOVEANYOF THESUBSURFACERESOURCESON OR FROMTHEPROPERTY, - INCLUDINGWITHOUTLIMITATIONTHERIGHTTO WHIPSTOCKOR DIRECTIONALLYDRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELIS,TUNNELSANDSHAFTS INTO,

THROUGHOR ACROSSTHE SUBSURFACEOFTHE PROPERTY,ANDTO BOTTOMSUCH

WHIPSTOCKEDOR DIRECTIONALLYDRILLEDWELLS,TUNNELSANDSHAETSWITHINOR

BEYONDTHE EXTERIORLIMITSOF THE PROPERTY,ANDTO REDRILL,RETUNNEL,EQUIP,

MAINTAIN,REPAIR,DEEPENANDOPERATEANYSUCHWELLSOR MINES,BUTWITHOUTTHE

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

SUBSURFACERESOURCESTHROUGHORIN THESURFACEOF THEPROPERTYORTHEUPPER FIVEHUNDRED(S00) FEETOFTHESUBSURFACEOFTHE PROPERTY.)
PARCELNO. 2
THE SOUTH‘/2OF THE NORTHWESTMaOF SECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST,

SANBERNARDINOBASEANDMERIDIAN,STATEOF CALIFORNIA, ACCORDINGTO THE OFFICIALGOVERNMENTPLATTHEREOF.

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

RIGHTSTO ALLOTHERHYDROCARBONSBYWHATSOEVERNAMEKNOWN,(V) GEOTHERMAL

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

STOREANDREMOVEANYOFTHE SUBSURFACERESOURCESON OR FROMTHE PROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTO WHIPSTOCKOR DIRECITONALLYDRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,

THROUGHORACROSSTHESUBSURFACEOFTHE PROPERTY,ANDTO BOTTOMSUCH

WHIPSTOCKEDOR DIRECTIONALLYDRILLEDWELIS, TUNNELSANDSHAFTSWITHINOR

BEYONDTHEEXTERIORLIMITSOFTHE PROPERTY,ANDTO REDRILL,RETUNNEL,EQUIP,

MAINTAIN,REPAIR,DEEPENANDOPERATEANYSUCHWELLSOR MINES,BUTWITHOUTTHE

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

SUBSURFACERESOURCESTHROUGHORIN THESURFACEOFTHEPROPERTYORTHEUPPER FIVEHUNDRED(S00) FEETOFTHESUBSURFACEOFTHE PROPERTY.)
PARCEL9: (APN‘S:667-080-006AND007)
TENTATIVE(TRACT)MAP32030-8, BEINGA SUBDIVISIONOF THE FOLLOWINGDESCRIBED PROPERTY:

PARCELNO. 1
THE NORTHEAST‘/4OFTHE NORTHWEST‘/4ANDTHENORTH‘/2OF THE NORTHEASTIA:OF 347lO20269-0040
1036916137a03/23/10 ‘14'

Page 124 of 296 ends

SECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST,SANBERNARDINOBASEANDMERIDIAN, STATEOFCALIFORNIA,ACCORDINGTO THE OFFICIALGOVERNMENTPLATTHEREOF.

EXCEPTINGTHEREFROMANYPORTIONLYINGWITHINTRACT32030—10ASSHOWNON FILEIN BOOK419 PAGES40 THROUGH47 OF MAPS,RECORDSOF RIVERSIDECOUNTY,CALIFORNIA.

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

RIGHTSTO ALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(V) GEOTHERMAL

STOREANDREMOVEANYOFTHESUBSURFACERESOURCESONORFROMTHE PROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTO WHIPSTOCKORDIRECTIONALLYDRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELIS, TUNNELSANDSHAI-TSINTO,

THROUGHOR ACROSSTHE SUBSURFACEOFTHEPROPERTY,ANDTO BOTTOMSUCH

WHIPSTOCKEDOR DIRECTIONALLYDRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHE EXTERIORLIMITSOF THE PROPERTY,ANDTO REDRILL,RETUNNEL,EQUIP,

MAINTAIN,REPAIR,DEEPENANDOPERATEANYSUCHWELLSORMINES,BUTWITHOUTTHE

RIGHTTO DRILL,MINE,EXPLORE,OPERATE,PRODUCE,STOREOR REMOVEANYOF THE

SUBSURFACERESOURCESTHROUGHOR IN THE SURFACEOFTHEPROPERTYORTHEUPPER FIVEHUNDRED(500) FEETOFTHE SUBSURFACEOFTHE PROPERTY.)
PARCELNO. 2:

THE SOUTH‘/1OFTHENORTHWEST‘/4OF SECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST,

SANBERNARDINOBASEANDMERIDIAN,STATEOF CALIFORNIA,ACCORDINGTO THE OFFICIALGOVERNMENTPLATTHEREOF.

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

RIGHTSTO ALLOTHERHYDROCARBONSBYWHATSOEVERNAMEKNOWN,(V) GEOTHERMAL

UNDERTHAT CERTAINREALPROPERTYSITUATEDIN THE COUNTYOF RIVERSIDE,STATEOF CALIFORNIADESCRIBEDIN EXHIBIT"A"ATTACHEDHERETOANDINCORPORATEDHEREIN (THE "PROPERTY“),TO THE EXTENTSUCHSUBSURFACERESOURCESHAVENOT BEEN PREVIOUSLYRESERVED;AND
347/o2o2e9.oo4o
103691607 a03/23/10 -15-

Page 125 of 296 ends

B. THE PERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,

STOREANDREMOVEANYOF THE SUBSURFACERESOURCESON OR FROMTHEPROPERTY,

INCLUDINGWITHOUTLIMITATIONTHE RIGHTTO WHIPSTOCKOR DIRECTIONALLYDRILLAND

MINE,FROMLANDSOTHERTHANTHE PROPERTY,WELLS,TUNNELSANDSHAFTSINTO,

THROUGHOR ACROSSTHESUBSURFACEOF THE PROPERTY,ANDTO BOTTOMSUCH

WHIPSTOCKEDOR DIRECTIONALLYDRILLEDWELIS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHEEXTERIORLIMITSOF THE PROPERTY,ANDTO REDRILL,RETUNNEL,EQUIP,

MAINTAIN,REPAIR,DEEPENANDOPERATEANYSUCHWELLSOR MINES,BUTWITHOUTTHE

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

SUBSURFACERESOURCESTHROUGHOR IN THESURFACEOFTHEPROPERTYORTHEUPPER FIVEHUNDRED(S00) FEETOFTHESUBSURFACEOF THEPROPERTY.)
PARCEL10: (APN‘S:667-080-002THROUGH004, 006 AND007)
TENTATIVE(TRACT)MAP32030-9, BEINGA SUBDIVISIONOFTHEFOLLOWINGDESCRIBED PROPERTY:

PARCELNO. 1
THATPORTIONOF THENORTHWEST‘/4OFTHENORTHWESTMaOF SECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST,SANBERNARDINOBASEAND MERIDIAN,STATEOF CALIFORNIA, ACCORDINGTO THEOFFICIALGOVERNMENTPLATTHEREOF.

BEGINNINGATTHE SOUTHEASTCORNEROF THENORTHWEST‘/4 OFTHENORTHWEST‘A, OF SAIDSECTION;THENCEWESTERLY,ONTHE SOUTHLINEOF SAIDNORTHWEST‘?xOFTHE NORTHWEST‘/4980.5 FEET,TO EASTLINEOF THAT CERTAIN60 FOOTROADKNOWNAS 29 PALMSHIGHWAY;THENCENORTH23'’ 01' 13" EASTONTHE NORTHLINEOF SAIDSECTION 390.71 FEETTO THENORTHEASTCORNEROF THENORTHWEST‘A OFTHE NORTHWEST‘/4OF SAIDSECTION;THENCESOUTH0° 09‘ 30" EAST,ON THE EASTLINEOFTHESAID NORTHWEST‘/4OF THE NORTHWEST‘/4OF SAIDSECTION, 1380.18 FEET,TO THEPOINTOF BEGINNING.

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

RIGHTSTO ALLOTHERHYDROCARBONSBYWHATSOEVERNAMEKNOWN,(V) GEOTHERMAL

UNDERTHATCERTAINREALPROPERTYSITUATEDIN THECOUNTYOF RIVERSIDE,STATEOF CALIFORNIADESCRIBEDIN EXHIBIT“A“ATTACHEDHERETOANDINCORPORATEDHEREIN (THE"PROPERTY"),TO THE EXTENTSUCHSUBSURFACERESOURCESHAVENOTBEEN PREVIOUSLYRESERVED;AND
347/02026941040
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Page 126 of 296 ends

B.THE PERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,

STOREANDREMOVEANYOFTHESUBSURFACERESOURCESONOR FROMTHEPROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTO WHIPSTOCKOR DIRECTIONALLYDRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,

THROUGHORACROSSTHESUBSURFACEOF THE PROPERTY,ANDTO BOTTOMSUCH

WHIPSTOCKEDOR DIRECTIONALLYDRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHE EXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL,RETUNNEL,EQUIP,

MAINTAIN,REPAIR,DEEPENANDOPERATEANYSUCHWELLSOR MINES,BUTWITHOUTTHE

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

SUBSURFACERESOURCESTHROUGHORIN THESURFACEOFTHEPROPERTYORTHE UPPER FIVEHUNDRED(S00) FEETOFTHE SUBSURFACEOFTHE PROPERTY.)
SAIDPROPERTYIS ALSOSHOWNAS PARCEL2, 3 AND4 ONRECORDOF SURVEYON FILEIN BOOK27 PAGE65 OF RECORDSOF SURVEY,RECORDSOF RIVERSIDECOUNTY,CALIFORNIA.

PARCELNO. 2
THENORTHEAST‘/4OFTHENORTHWEST‘A ANDTHENORTH‘/2OF THE NORTHEAST‘A OF SECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST,SANBERNARDINOBASEANDMERIDIAN, STATEOFCALIFORNIA,ACCORDINGTO THEOFFICIALGOVERNMENTPLATTHEREOF.

EXCEPTINGTHEREFROMANYPORTIONLYINGWITHINTRACT32030-10AS SHOWNON FILEIN BOOK419 PAGES40 THROUGH47 OF MAPS,RECORDSOF RIVERSIDECOUNTY,CALIFORNIA.

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

RIGHTSTO ALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(V)GEOTHERMAL

HEATRIGHTSOR GEOTHERMALSUBSTANCESTHATMAYBEPRODUCEDFROMTHE PROPERTY, (VI) WATERRIGHTSANDCLAIMSOR RIGHTST0 WATERAND(VII) ALLPRODUCTSDERIVED FROMANYOF THE FOREGOING(COLLECTIVELY, "SUBSURFACERESOURCES")LOCATEDIN OR

UNDERTHATCERTAINREALPROPERTYSITUATEDIN THECOUNTYOF RIVERSIDE,STATEOF CALIFORNIADESCRIBEDIN EXHIBIT"A"ATTACHEDHERETOANDINCORPORATEDHEREIN (THE"PROPERTY"),TOTHEEXTENTSUCHSUBSURFACERESOURCESHAVENOTBEEN PREVIOUSLYRESERVED;AND
. B. THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE, 5 STOREANDREMOVEANYOFTHE SUBSURFACERESOURCESON ORFROMTHE PROPERTY, — INCLUDINGWITHOUTLIMITATIONTHERIGHTTO WHIPSTOCKOR DIRECTIONALLY DRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,

THROUGHOR ACROSSTHE SUBSURFACEOFTHEPROPERTY,ANDTO BOTTOMSUCH WHIPSTOCKEDOR DIRECTIONALLYDRILLEDWELLS,TUNNEI5ANDSHAFTSWITHINOR

BEYONDTHE EXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL,RETUNNEL,EQUIP,

MAINTAIN,REPAIR,DEEPENANDOPERATEANYSUCHWELLSOR MINES,BUTWITHOUTTHE

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

SUBSURFACERESOURCESTHROUGHORIN THESURFACEOF THEPROPERTYOR THE UPPER FIVEHUNDRED(500) FEETOF THE SUBSURFACEOF THE PROPERTY.) PARCELNO. 3
347/0Z0269—0040
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Page 127 of 296 ends

THE SOUTH‘/2OFTHENORTHWEST‘/4 OF SECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST,

SANBERNARDINOBASEANDMERIDIAN,STATEOFCALIFORNIA,ACCORDINGTO THE OFFICIALGOVERNMENT PLATTHEREOF.

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

RIGHTSTO ALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(V) GEOTHERMAL

UNDERTHATCERTAINRFALPROPERTYSITUATEDIN THECOUNTYOFRIVERSIDE,STATEOF CALIFORNIADESCRIBEDIN EXHIBIT"A"ATTACHEDHERETOANDINCORPORATEDHEREIN (THE "PROPERTY"),TO THE EXTENTSUCHSUBSURFACERESOURCESHAVENOTBEEN PREVIOUSLYRESERVED;AND
B. THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,

STOREANDREMOVEANYOFTHESUBSURFACERESOURCESON ORFROMTHEPROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTO WHIPSTOCKORDIRECTIONALLY DRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,

THROUGHORACROSSTHESUBSURFACEOF THE PROPERTY,ANDTO BOTTOMSUCH

WHIPSTOCKEDOR DIRECTIONALLY DRILLEDWELLS,TUNNEISANDSHAFTSWITHINOR

BEYONDTHEEXTERIORLIMITSOFTHE PROPERTY,ANDTO REDRILL,RETUNNEL,EQUIP,

MAINTAIN,REPAIR,DEEPENANDOPERATEANYSUCHWELLSOR MINES,BUTWITHOUTHE

RIGHTTO DRILL,MINE,EXPLORE,OPERATE,PRODUCE,STOREOR REMOVEANYOF THE

SUBSURFACERESOURCESTHROUGHOR IN THESURFACEOF THEPROPERTYORTHEUPPER FIVEHUNDRED(500) FEETOFTHESUBSURFACEOFTHEPROPERTY.
347/020269-0040
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SCHEDULE 1

AGREEMENTS/LIENAMOUNTS

AGREEMENTS LIEN AMOUNT
l. 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 $12,000.00 , 2006 by and between DR Horton Inc. and City
of Desert Hot Springs.

4. Street ~ Storm Drain Agreement for Tract No. 32030 $1,823,000.00 (Villages 1, 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.

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

7. Street — Storm Drain Agreement for Tract No. 32030 $2,609,530.00 (Villages 3 & 10) dated March 22, 2006 by and between DR 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 between DR 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
3“7’°2°“""°°“°
103691607 2:03/23/10 TO LIEN CONTRACT

Page 129 of 296 ends

11. corresponds to Bond No. 6374143]

12. [Need Subdivision Improvement Agreement which $491,000.00 corresponds to Bond No. 6416350]
347/020269-0040 -2- 1036916.07a03/23/10

Page 130 of 296 ends

SCHEDULE2
BONDS
Skyborne Bonds
Bond Remaining Category Amount Actual
Surety Name Name Bond Number Issue Date Bond Description City Of Desert Hot Springs
Safeco Subdivision 6374143 10/13/2005 $20,000.00 SKYBORNEMONUMENT Safeco Subdivision 6397085 3/20/2006 $20,000.00 Skyborne Monument Village Band 10 The Continental lns Company (under CAN) Maintenance 929413952 1/9/2007 $57,000.00 SkybornelGrading For village 8 The Continental Ins Company (under CAN) Maintenance 929413955 1/9/2007 $12,000.00 Skyborne/Grading For village 9 Bond Safeguard Insurance Company Subdivision 5021469 3/21/2006 $1,823,000.00 Skyborne Village 1-10 street and storm drain spine roads tract 32030 Bond Safeguard Insurance Company Subdivision 5021470 3/21/2006 $1,540,000.00 Skyborne Village 1-10 street and storm drain Public Roads tract 32030 The Hartford Fire Insurance Company Performance 20BSBDU0285 3/21/2006 $2,860,946.00 Skyborne Village 3 and 10 water and sewer The Hartford Fire insurance Company Subdivision 20BSBDU0286 3/21/2006 $2,609,530.00 Skyborne Village 3 and 10 street and storm drain Safeco Subdivision 6416350 5/23/2006 $491 ,00000 Skyborne TR #32030 Village # 3 & 10 Grading AIG (American Home Assurance) Subdivision 295018 7/5/2006 $67,000.00 Skyborne Village 5 grading AIG(American Home Assurance) Subdivision 295015 7/5/2006 $26,000.00 Skyborne Village 4 grading Total Bonds with City $9,526,476.00
13148602 Page 131 of 296
°°° " 2@1a—@2362s7
05/21/zom
RECORDINGREQUESTEDBY custa
AND WHEN RECORDEDMAIL TO: Thgfpleggg rt‘:l13ieE°EZri;ai§ie1 is . s not been compared with the recorded document
SkyborneVentures, LLC Lam-¥ uHard
c/o Lansing Companies Qssessggungy 0 Riverside
12770High Bluff Drive, Suite 160
, ounty Clerk & Recorder
San Diego, CA 92130
Attention: Benjamin M. Weiss, Esq. S R U PAGE SIZE DA MISC LONG RFD copy SPACE ABOV M A L 465 426 PCOR NCOR smr NCHG EXAM
T: CTY UNI

SUBORDINATIONAGREEMENT
THIS SUBORDINATIONAGREEMENT(this "Sub0rdination") is dated for reference purposes only as of May 6, 2010 and is made by WESTERN PACIFIC HOUSING, INC., a Delaware corporation ("WPH“), in favor of the CITY OF DESERT HOT SPRINGS (the ncityn).

RECITALS:

A. On or about the date of this Subordination, the City and Skyborne Ventures LLC, a Delaware limited liability company ("Skyborne"), have entered into that certain Lien Contract recordedin the Of?cial Records of Riverside County, California (“Official Records") as Document No. 2010-$’7f’>ln’.7l£ia(the "Lien Contract"). 0 N 5 ' ll - 20 IO
B. Pursuant to the Lien Contract, Skyborne has granted the City a lien on that certain real property owned by Skybome and located in the City of Desert Hot Springs, Riverside County, California, and legally described on ExhibitA (collectively, the "Property"), in the initial amount of $9,526,476.00, in order to secure Skyborne's obligation to complete certain improvements relative to the Property, and the City has agreed, among other matters, to release certain improvement bonds previously posted by WPH or its affiliates (collectively, the "Bonds").

C. Pursuant to that certain Corporation Deed of Trust with Assignment of Rents recorded in the Of?cial Records on September l9, 2008, as Document No. 2008-514882 (the "Deed of Trust"), Skyborne previously granted to WPH a lien on the Property in order to secure Skyb0rne'sobligation to, among matters, cause the City to release the Bonds.

D. To induce the City to enter into the Lien Contract and release certain of the Bonds, WPH has agreed to subordinate the lien of its Deed of Trust to the Lien Contract, as providedherein.
741844.02/SD
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Page 132 of 296 ends

NOW THEREFORE, in considerationof the sum of Ten Dollars ($10.00) and other good and valuable consideration, the receipt and suf?ciency of which are hereby acknowledged, WPH hereby agrees as follows:

1. Subordination.

The Deed of Trust is hereby subjected and subordinatedto the Lien Contract and all liens, rights, titles, assignments and security interests created by the Lien Contract.

Notwithstanding the foregoing, the Subordination shall be null and void and of no further force or effect if there is any amendment or other modi?cation to the Lien Contract without the prior written approval of WPH. The foregoing sentence shall not, however, in any way limit or constrainthe City's right to release or partially release the Lien Contract as the Property as set forth in Paragraph 3 of the Lien Contract.

2. Miscellaneous Provisions.
(a) Binding Effect. This Subordinationshall inure to the bene?t of the City and shall be binding upon WPH and their successors and assigns. (b) Complete Agreement. This Subordinationcontains all of the agreements and conditionsmade by WPH regarding the subject matter hereof, supersedes prior negotiations and agreements regarding the subject matter hereof, and may not be modi?ed orally or in any manner otherthan by an agreement in writing signed by the City and WPH. (c) Governing Law. This Subordinationshall be governed by and construed in accordancewith the federal laws of the UnitedStates of America and internallaws of the State of Californiaapplicable to contracts made and to be performed in such state.

IN WITNESS WHEREOF, WPH has executedand delivered this Subordinationas of the date set forth above.

WPH:

WESTERN PACIFIC HOUSING, lNC.,
a Delaware co oration
Name: William E. Mayei,HI
Title: Vice President
741844.02/SD
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Page 133 of 296 ends

ACKNOWLEDGMENT
State of Californi )
county o >
On S 2010 , beforemeflhgug?i (Cpersonally
appeared(bl ' ,. , who proved to me on the basis of satisfactory evidence to be the personps’) w ose namegsbis/-aresubscribedto the within instrument and acknowledged to me that hekheplt-heyexecuted the same in his?her/*wir authorizedcapacity?esjf and that by his/Jr-ieralt-hei-r signaturegs)‘on the instrument the persongs’),or the entity upon behalfof which the person(s')'acted, executedthe instrument.

I certify under PENALTY OF PERJURY underthe laws of the State of Californiathat the foregoing paragraph istrue and correct. E >
COMM. # 1695372
‘ NOTARYPUBLICWJALIFOWAU
sm DIEGOcounty (3
My Commission Expires —-'
September 22, 2010
,. i
WITNESS my hand and of?cial seal.

I signatur (seal)
741844.02/SD
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Page 134 of 296 ends

EXHIBIT A
EXHIBIT“A”

PROPERTY
PARCEL3: (APN'S:667-300-001THROUGH054, 058; 667-310-001THROUGH084 AND088; 667-320-001THROUGH026, 029 THROUGH078, 080 THROUGH083 AND667-330-001 THROUGH013, 015 THROUGH072 AND076)
LOTS1 THROUGH286 ANDLEITEREDLOTS"0" THROUGH"Z"AND"AA”OFTRACTNO. 32030- 3 ASSHOWNONBYMAPON FILEIN BOOK419 PAGES29 THROUGH39 OF MAPS,RECORDSOF RIVERSIDECOUNTY,CALIFORNIA.

PARCEL4: (APN‘S:667-340-001THROUGH048 AND051,’667-350-001THROUGH074 AND078 THROUGH080; AND667-360-001THROUGH060 AND064) '
LOTS1 THROUGH182 ANDLETTEREDLOTS"H"THROUGH"S" OFTRACTNO. 32030-10, AS SHOWNBYMAPONFILEIN BOOK419 PAGES40 THROUGH47 OF MAPS,RECORDSOF RIVERSIDECOUNTY,CALIFORNIA.

PARCEL5: (APN'5:667-080-006, 667-100-029,031 AND038)
TENTATIVE(TRACT)MAP32030-4, BEINGASUBDIVISIONOFTHEFOLLOWINGDESCRIBED PROPERTY:

PARCELNO. 1:

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

SANBERNARDINOBASEANDMERIDIAN,STATE OF CALIFORNIA,ACCORDINGTO THE OFFICIALGOVERNMENTPLATTHEREOF.

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

RIGHTSTO ALLOTHERHYDROCARBONSBYWHATSOEVERNAMEKNOWN,(V) GEOTHERMAL 74184402/SD
142922-00008/S-4-)0/(bc/cjb *4‘

Page 135 of 296 ends

UNDERTHATCERTAINREALPROPERTYSITUATEDIN THECOUNTYOF RIVERSIDE,STATEOF CALIFORNIADESCRIBEDIN EXHIBIT"A"ATTACHEDHERETOANDINCORPORATEDHEREIN (THE "PROPERW"), TO THE EXTENTSUCHSUBSURFACERESOURCESHAVENOTBEEN PREVIOUSLYRESERVED;AND
B. THE PERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,

STOREANDREMOVEANYOFTHESUBSURFACERESOURCESONOR FROMTHEPROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTO WHIPSTOCKORDIRECTIONALLYDRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,

THROUGHORACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO BOTTOMSUCH

WHIPSTOCKEDOR DIRECTIONALLYDRILLEDWELLS,TUNNELSANDSHAH'SWITHINOR

BEYONDTHE EXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL,RETUNNEL,EQUIP,

MAINTAIN,REPAIR,DEEPENANDOPERATEANYSUCHWELLSOR MINES,BUTWITHOUTTHE

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

SUBSURFACERESOURCESTHROUGHORIN THESURFACEOFTHE PROPERTYORTHEUPPER FIVEHUNDRED(500) FEI:TOFTHE SUBSURFACEOFTHE PROPERTY.)
PARCELNO.2:

THESOUTHWEST‘AOF SECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST,SANBERNARDINO

BASEANDMERIDIAN,STATEOFCALIFORNIA,ACCORDINGTO THEOFFICIALGOVERNMENT PLATTHEREOF.

EXCEPTINGTHEREFROMTHEEAST‘/2OFTHESOUTHWEST‘/4.

ALSOEXCEPTINGTHEREFROMTHEEAST1/2OFTHENORTHEAST‘/1OFTHENORTHWEST‘A OFTHE SOUTHWEST‘/4OFSAIDSECTION.

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

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

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

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

RIGHTSTO ALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(V) GEOTHERMAL

Page 136 of 296 ends

B.THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,

STOREANDREMOVEANYOFTHESUBSURFACERESOURCESONOR FROMTHEPROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTO WHIPSTOCKOR DIRECTIONALLYDRILLAND

MINE,FROMLANDSOTHERTHANTHE PROPERTY,WELLS,TUNNELSANDSHAFTSINTO,

THROUGHORACROSSTHESUBSURFACEOFTHE PROPERTY,ANDTO BOTTOMSUCH

WHIPSTOCKEDORDIRECTIONALLYDRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHE EXTERIORLIMITSOFTHE PROPERTY,ANDTO REDRILL,RETUNNEL,EQUIP,

MAINTAIN,REPAIR,DEEPENANDOPERATEANYSUCHWELLSOR MINES,BUTWITHOUTTHE

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

SUBSURFACERESOURCESTHROUGHORINTHESURFACEOFTHE PROPERTYORTHEUPPER FIVEHUNDRED(500) FEETOFTHE SUBSURFACEOF THEPROPERTY.)
PARCELNO. 3:

THEEAST‘/2OFTHE SOUTHWEST‘A, ANDTHE EAST‘/2OFTHENORTHEASTI/a OFTHE NORTHWEST‘/4 OFTHESOUTHWEST1/:OF SECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST,

SANBERNARDINOBASEANDMERIDIAN,STATEOF CALIFORNIA,ACCORDINGTO THE OFFICIALGOVERNMENTPLATTHEREOF.

EXCEPTINGTHEREFROMTHESOUTHERLY40 FEETASCONVEYEDTO THECOUNTYOF RIVERSIDE,BYDEEDRECORDEDJULY26, 1949 ASINSTRUMENTNO. 3081 OFOFFICIAL RECORDSOFRIVERSIDECOUNTY,CALIFORNIA.

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

ALSOEXCEP'TINGTHEREFROMANYPORTIONLYINGWITHINTRACT32030-3ASSHOWNON FILEIN BOOK419 PAGES29 THROUGH39 OF MAPS,RECORDSOF RIVERSIDECOUNTY, CALIFORNIA.

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

RIGHTSTO ALLOTHERHYDROCARBONSBYWHATSOEVERNAMEKNOWN,(V) GEOTHERMAL

UNDERTHATCERTAINREALPROPERTYSITUATEDINTHECOUNTYOFRIVERSIDE,STATEOF CALIFORNIADESCRIBEDIN E(HIBIT “A"ATTACHEDHERETOANDINCORPORATEDHEREIN (THE"PROPERTY"),TO THE EXTENTSUCHSUBSURFACERESOURCESHAVENOTBEEN PREVIOUSLYRESERVED;AND
B.THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,

STOREANDREMOVEANYOFTHESUBSURFACERESOURCESONORFROMTHE PROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTO WHIPSTOCKOR DIRECTIONALLYDRILLAND

MINE, FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,

THROUGHORACROSSTHESUBSURFACEOF THEPROPERTY,ANDTO BOTTOMSUCH

WHIPSTOCKEDOR DIRECTIONALLYDRILLEDWELLS,TUNNELSANDSHAFTSWITHIN OR

BEYONDTHE EXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL,RETUNNEL,EQUIP,

MAINTAIN,REPAIR,DEEPENANDOPERATEANYSUCHWELLSOR MINES,BUTWITHOUTTHE 741844.02/SD
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Page 137 of 296 ends

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

SUBSURFACERESOURCESTHROUGHORINTHESURFACEOFTHE PROPERTYORTHEUPPER FIVEHUNDRED(500) FEETOFTHESUBSURFACEOFTHE PROPERTY.)
PARCEL6: (APN’S:667-100-029,031 AND038; 667-120-051,052, 025THROUGH027) TENTATIVE(TRACT)MAP32030-5,BEINGASUBDIVISIONOFTHEFOLLOWINGDESCRIBED PROPERTY:

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

BASEANDMERIDIAN,STATEOFCALIFORNIA,ACCORDINGTO THEOFFICIALGOVERNMENT PLATTHEREOF.

EXCEPTINGTHEREFROMTHEEAST‘/2OFTHESOUTHWEST‘/4.

ALSOEXCEPTINGTHEREFROMTHE EAST‘/2OFTHENORTHEAST‘/4OF THENORTHWEST‘/4 OFTHESOUTHWESTI/4OF SAIDSECTION.

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

ALSOEXCEPTINGTHEREFROMANYPORTIONLYINGWITHINTRACT32030-1ASSHOWNON FILEIN BOOK404, PAGES67 THROUGH75, OFMAPS,RECORDSOF RIVERSIDECOUNTY, CALIFORNIA.

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

A. ANYANDALL(I) OILRIGHTS,(II) MINERALRIGHTs,(111)NATURALGAsRIGHTS,(IV) RIGHTSTo ALLOTHERHYDRoGARBoNs BYWHATSOEVERNAMEKNOWN,(v) GEOTHERMAL HEATRIGHTSOR GEOTHERMALsUBsTANcEsTHAT MAYBEPRODUCEDFROMTHEPRDPERTY, (VI) WATERRIGHTSANDCLAIMSOR RIGHTSTOwATERAND(VII)ALLPRODUCTSDERIVED FROMANYor THE FOREGOING(COLLECTIVELY, "SUBSURFACERESOURCES")LOCATEDINOR UNDERTHATCERTAINREALPROPERTYSITUATEDINTHECOUNTYOF RIVERSIDE,sTATEOF CALIFORNIADESCRIBEDIN EXHIBIT"A"ATTACHEDHERETOANDINcoRPoRATEDHEREIN (THE"PROPERTY"),TO THEEXTEN'I' SUCHSUBSURFACERESOURCESHAVENoTBEEN PREVIOUSLYRESERVED;AND

B, THE PERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,

STOREANDREMOVEANYOFTHESUBSURFACERESOURCESONORFROMTHE PROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTO WHIPSTOCKOR DIRECTIONALLYDRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,

THROUGHOR ACROSSTHE SUBSURFACEOF THE PROPERTY,ANDTO BOTTOMSUCH

WHIPSTOCKEDOR DIRECTIONALLYDRILLEDWELLS,TUNNEISANDSHAWSWITHINOR

BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL,RETUNNEL,EQUIP,

MAINTAIN,REPAIR, DEEPENANDOPERATEANYSUCHWELLSOR MINES,BUTWITHOUTTHE

RIGHTTO DRILL,MINE,EXPLORE,OPERATE,PRODUCE,STOREOR REMOVEANYOF THE

SUBSURFACERESOURCESTHROUGHOR IN THESURFACEOFTHEPROPERTYORTHEUPPER 74 l 844,02/SD
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Page 138 of 296 ends

FIVEHUNDRED(500) FEETOFTHESUBSURFACEOFTHEPROPERTY.)
PARCELNO.2:

THE EAST‘/2OFTHE SOUTHWEST‘/4,ANDTHEEAST‘/2OF THENORTHEAST‘A OFTHE NORTHWEST‘/4OFTHE SOUTHWEST‘/4OF SECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST,

SANBERNARDINOBASEANDMERIDIAN,STATEOFCALIFORNIA,ACCORDINGTO THE OFFICIALGOVERNMENTPLATTHEREOF.

EXCEPTINGTHEREFROMTHESOUTHERLY40 FEETASCONVEYEDTO THECOUNTYOF RIVERSIDE,BYDEEDRECORDEDJULY26, 1949 ASINSTRUMENTNO.3081 OF OFFICIAL RECORDSOFRIVERSIDECOUNTY,CALIFORNIA.

ALSOEXCEPTINGTHEREFROMANYPORTIONLYINGWITHINTRACT320301 ASSHOWNON FILEIN BOOK404, PAGES67 THROUGH75, OF MAPS,RECORDSOFRIVERSIDECOUNTY, CALIFORNIA.

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

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

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

RIGHTSTO ALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(V)GEOTHERMAL

STOREANDREMOVEANYOFTHESUBSURFACERESOURCESON ORFROMTHE PROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTO WHIPSTOCKOR DIRECTIONALLYDRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,

THROUGHORACROSSTHE SUBSURFACEOFTHEPROPERTY,ANDTO BOTTOMSUCH

WHIPSTOCKEDOR DIRECTIONALLYDRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHEEXTERIORLIMITSOF THEPROPERTY,ANDTO REDRILL,RETUNNEL,EQUIP,

MAINTAIN,REPAIR,DEEPENANDOPERATEANYSUCHWELLSORMINES,BUTWITHOUTTHE

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

SUBSURFACERESOURCESTHROUGHORIN THESURFACEOFTHEPROPERTYORTHEUPPER FIVEHUNDRED(S00) FEETOFTHESUBSURFACEOFTHEPROPERTY.)
PARCEL3:

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

BERNARDINOBASEANDMERIDIAN,STATEOFCALIFORNIA,ACCORDINGTO THEOFFICIAL GOVERNMENTPLATTHEREOF.
741844.02/SD
142922-00008/5-LI?ltbucjb '8'

Page 139 of 296 ends

COMMENCINGATTHE SOUTHEASTCORNEROF SAIDSECTION29; THENCENORTHERLY ALONGTHEEASTERLYBOUNDARYOF SAIDSECTION29, A DISTANCEOF906 FEETTO THE TRUE POINTOFBEGINNING;THENCEWESTERLYANDPARALLELTHESOUTHERLYBOUNDARY OF SAIDSECTION29, A DISTANCEOF 528 FEETTHENCENORTHERLYANDPARALLELWITH THEEASTERLYBOUNDARYOF SAIDSECTION29, A DISTANCEOF 577 FEET;THENCE EASTERLYANDPARALLELWITHTHESOUTHERLYBOUNDARYOF SAIDSECTION29, A DISTANCEOF 528 FEETTO THE EASTERLYBOUNDARYOF SAIDSECTION29; THENCE SOUTHERLYALONGTHEEASTERLYBOUNDARYOF SAIDSECTION29, A DISTANCEOF 577 FEETTO THETRUEPOINTOFBEGINNING.

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

RIGHTSTO ALLOTHERHYDROCARBONSBYWHATSOEVERNAMEKNOWN,(V) GEOTHERMAL

STOREANDREMOVEANYOFTHESUBSURFACERESOURCESONORFROMTHE PROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTO WHIPSTOCKOR DIRECTIONALLYDRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,

THROUGHORACROSSTHESUBSURFACEOF THEPROPERTY,ANDTO BOTTOMSUCH

WHIPSTOCKEDOR DIRECTIONALLYDRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHEEXTERIORLIMITSOFTHE PROPERTY,ANDTO REDRILL,RETUNNEL,EQUIP, ‘ MAINTAIN,REPAIR,DEEPENANDOPERATEANYSUCHWELLSOR MINES,BUTWITHOUTTHE

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

SUBSURFACERESOURCESTHROUGHORIN THESURFACEOFTHEPROPERTYORTHEUPPER FIVEHUNDRED(500) FEETOFTHESUBSURFACEOF THE PROPERTY.)
PARCELNO. 4:

THENORTT1165 FEETOF THEREALPROPERTYDESCRIBEDAS FOLLOWS:

THATPORTIONOFTHE EAST‘/2OFSECTION29, TOWNSHIP2 SOUTH,RANGE4 EAST,SAN

BERNARDINOBASEANDMERIDIAN,STATEOFCALIFORNIA,ACCORDINGTO THEOFFICIAL GOVERNMENTPLATTHEREOF.

COMMENCINGATTHESOUTHEASTCORNEROFSAIDSECTION29; THENCENORTHERLY ALONGTHEEASTERLYBOUNDARYOFSAIDSECTION,ADISTANCEOF 329.0 FEETTOTHE TRUE POINTOFBEGINNING;THENCEWESTERLYANDPARALLELWITHTHE SOUTHBOUNDARY OF SAIDSECTION,A DISTANCEOF 528.0 FEET;THENCENORTHERLYANDPARALLELWITH THE EASTERLYBOUNDARYOF SAIDSECTION,A DISTANCEOF 577.0 FEET;THENCEEASTERLY ANDPARALLELWITHTHE SOUTHBOUNDARYOF SAIDSECTIONA DISTANCEOF 528.0 FEET;

THENCESOU'THERLYALONGTHE EASTERLYBOUNDARYOF SAID SECTION,A DISTANCEOF 741844.02/SD
I4Z922-00O08l5»4-10/Ibc/cjb -9-

Page 140 of 296 ends

577.0 FEETTO THETRUEPOINTOF BEGINNING.

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

RIGHTSTO ALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(V) GEOTHERMAL

HEATRIGHTSORGEOTHERMALSUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY, (VI) WATERRIGHTSANDCLAIMSOR RIGHTSTo wATERAND(VII) ALLPRODUCTSDERIVED FROMANYOF THE FOREGOING(COLLECTIVELY, "SUBSURFACERESOURCES")LOCATEDINOR

UNDERTHATCERTAINREALPROPERTYSIIUATEDINTHE COUNTYOF RIVERSIDE,STATEOF CALIFORNIADESCRIBEDIN E)(HIB1T "A"ATTACHEDHERETOANDINCORPORATEDHEREIN (THE "PROPERTY"),TO THEEX'l'ENTSUCHSUBSURFACERESOURCESHAVENOTBEEN PREVIOUSLYRESERVED;AND
B.THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,

STOREANDREMOVEANYOFTHESUBSURFACERESOURCESONOR FROMTHEPROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTO WHIPSTOCKORDIRECTIONALLYDRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,

THROUGHOR ACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO BOTTOMSUCH

WHIPSTOCKEDOR DIRECTIONALLYDRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHEEXTERIORLIMITSOF THE PROPERTY,ANDTO REDRILL,RETUNNEL,EQUIP,

MAINTAIN,REPAIR,DEEPENANDOPERATEANYSUCHWELLSORMINES,BUTWITHOUTTHE

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

SUBSURFACERESOURCESTHROUGHOR INTHESURFACEOFTHEPROPERTYORTHE UPPER FIVEHUNDRED(500) FEETOFTHESUBSURFACEOFTHEPROPERTY.)
PARCELNO. 5:

THAT PORTIONOFTHEEAST‘/2 OF SECTION29, TOWNSHIP2 SOUTH,RANGE4 EAST,SAN

BERNARDINOBASEANDMERIDIAN,STATEOFCALIFORNIA,ACCORDINGTO THEOFFICIAL

GOVERNMENTPLATTHEREOF
COMMENCINGATTHESOUTHEASTCORNEROF SAIDSECTION29; THENCENORTHERLY ALONGTHE EASTERLYBOUNDARYOF SAIDSECTION29, A DISTANCEOF 329 FEETTO THE TRUEPOINTOF BEGINNING;THENCEWESTERLYANDPARALLELWITHSOUTHERLYBOUNDARY OF SAIDSECTION29, A DISTANCEOF 528 FEET;THENCENORTHERLYANDPARALLELWITH THE EASTERLYBOUNDARYOF SAIDSECTION29, A DISTANCEOF 577 FEET;THENCE EASTERLYANDPARALLELWITHTHESOUTHERLYBOUNDARYOFSAIDSECTION29, A DISTANCEOF 528 FEET;THENCESOUTHERLYANDALONGTHEEASTERLYBOUNDARYOF SAID SECTION29, ADISTANCEOF 577 FEETTOTHETRUEPOINTOFBEGINNING.

EXCEPTINGTHEREFROMTHENORTH165 FEETTHEREOF.

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

RIGHTSTO ALLOTHERHYDROCARBONSBYWHATSOEVERNAMEKNOWN,(V) GEOTHERMAL 74 1844.02lSD
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Page 141 of 296 ends

B, THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,

STOREANDREMOVEANYOFTHESUBSURFACERESOURCESONOR FROMTHEPROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTO WHIPSTOCKOR DIRECTIONALLYDRILLAND

MINE,FROMLANDSOTHERTHANTHE PROPERTY,WELLS,TUNNELSANDSHAFTSINTO,

THROUGHORACROSSTHE SUBSURFACEOFTHEPROPERTY,ANDTO BOTTOMSUCH

WHIPSTOCKEDORDIRECTIONALLYDRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHE EXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL,RETUNNEL, EQUIP,

MAINTAIN,REPAIR,DEEPENANDOPERATEANYSUCHWELLSORMINES,BUTWITHOUTTHE

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

SUBSURFACERESOURCESTHROUGHOR IN THESURFACEOFTHE PROPERTYORTHE UPPER FIVEHUNDRED(500) FEETOFTHESUBSURFACEOFTHEPROPERTY.)
PARCELNO. 6:

THATPORTIONOFTHEEAST‘/2OF SECTION29, TOWNSHIP2 SOUTH,RANGE4 EAST,SAN

BERNARDINOBASEANDMERIDIAN,STATEOFCALIFORNIA,ACCORDINGTO THE OFFICIAL GOVERNMENTPLATTHEREOF.

COMMENCINGATTHESOUTHEASTCORNEROF SAIDSECTION29; THENCEWESTERLYALONG THESOUTHERLYBOUNDARYOF SAIDSECTION29, ADISTANCEOF 528 FEETTO THETRUE POINTOF BEGINNING;THENCECONTINUINGWESTERLYALONGTHE SAIDSOUTHERLY BOUNDARYOF SAIDSECTION29, A DISTANCEOF 528 FEET;THENCENORTHERLYAND PARALLELWITHTHEEASTERLYBOUNDARYOF SAIDSECTION29, A DISTANCEOF 2640 FEET; THENCEEASTERLYANDPARALLELWITHTHESOUTHERLYBOUNDARYOF SAIDSECTION29, A DISTANCEOF 528 FEET;THENCESOUTHERLYANDPARALLELWITHTHEEASTERLYBOUNDARY OF SAIDSECTION29, A DISTANCEOF 2640 FEETTO THETRUEPOINTOF BEGINNING.

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

RIGHTSTO ALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(V) GEOTHERMAL

HEATRIGHTSORGEOTHERMALSUBSTANCESTHATMAYBEPRODUCEDFROMTHE PROPERTY, (VI)WATER RIGHTSANDCLAIMSOR RIGHTSTO WATERAND(VII) ALLPRODUCTSDERIVED FROMANYOF THE FOREGOING(COLLECTIVELY, "SUBSURFACERESOURCES")LOCATEDIN OR UNDERTHATCERTAINREALPROPERTYSITUATEDIN THE COUI\TTYOF RIVERSIDE,STATEOF CALIFORNIADESCRIBEDIN EXHIBIT"A"ATTACHEDHERETOANDINCORPORATEDHEREIN (THE "PROPERTY"),TO THEEXTENTSUCHSUBSURFACERESOURCESHAVENOT BEEN PREVIOUSLYRESERVED;AND
B.THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,

STOREANDREMOVEANYOFTHESUBSURFACERESOURCESON ORFROMTHE PROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTO WHIPSTOCKOR DIRECTIONALLYDRILLAND 741844.02/SD
142922-00008/5-4-I0/tbc/cjb -I 1-

Page 142 of 296 ends

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,

THROUGHORACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO BOTTOMSUCH

WHIPSTOCKEDOR DIRECFIONALLYDRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHEEXTERIORLIMITSOFTHE PROPERTY,ANDTO REDRILL,RETUNNEL, EQUIP,

MAINTAIN,REPAIR,DEEPENANDOPERATEANYSUCHWELLSOR MINES,BUTWITHOUTTHE

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

SUBSURFACERESOURCESTHROUGHORINTHESURFACEOFTHEPROPERTYORTHEUPPER FIVEHUNDRED(500) FEETOFTHESUBSURFACEOFTHEPROPERTY.)
PARCEL7: (APN'S:667-080-006;667-100-029, 031 AND038; 667-120~0S1, 052 AND024) TENTATIVE(TRACT)MAP320306, BEINGASUBDIVISIONOFTHEFOLLOWINGDESCRIBED PROPERTY:

PARCELNO. 1:

THESOUTH‘/2OFTHE NORTHWEST‘AOFSECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST,

SANBERNARDINOBASEANDMERIDIAN,STATEOFCALIFORNIA,ACCORDINGTO THE OFFICIALGOVERNMENT PLATTHEREOF.

AISO EXCEPTINGTHEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC.,A COLORADOCORPORAUONBYDOCUMENTRECORDEDOCTOBER13, 2006, ASINSTRUMENT NO.2006-0756951OFOI-TICIALRECORDSOF SAIDCOUNTY.SAIDINTERESTIS FURTHER DESCRIBEDAS FOLLOWS:

A.ANYANDALL(I) OILRIGHTS,(II) MINERALRIGHTS,(III) NATURALGASRIGHTS,(IV) RIGHTSTO ALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(v) GEOTHERMAL

STOREANDREMOVEANYOFTHESUBSURFACERESOURCESONOR FROMTHE PROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTO WHIPSTOCKOR DIRECFIONALLY DRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,

THROUGHORACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO BOTTOMSUCH

WHIPSTOCKEDOR DIRECTIONALLYDRILLEDWELLS,TUNNEISANDSHAFTSWITHINOR

BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL,REFUNNEL,EQUIP,

MAINTAIN,REPAIR,DEEPENANDOPERATEANYSUCHWELLSOR MINES,BUTWITHOUTTHE

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

SUBSURFACERESOURCESTHROUGHORIN THESURFACEOFTHEPROPERTYORTHEUPPER FIVEHUNDRED(500) FEE"OFTHESUBSURFACEOFTHEPROPERTY.)
PARCELNO. 2:

THESOUTHWEST‘/4OF SECITON28, TOWNSHIP2 SOUTH,RANGE4 EAST,SANBERNARDINO

BASEANDMERIDIAN,STATEOF CALIFORNIA,ACCORDINGTO THE OFFICIALGOVERNMENT PLATTHEREOF.
741844.02lSD
142922—oooos/5-4.10/xbacjb -12-

Page 143 of 296 ends

EXCEPTINGTHEREFROMTHEEAST‘/2OFTHESOUTHWEST‘/I.

ALSOB(CEPTING THEREFROMTHEEAST‘/2OFTHENORTHEAST‘A OF THENORTHWEST‘/4 OFTHE SOUTHWEST‘/4OF SAIDSECTION.

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

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

ALSOEXCEP'TINGTHEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC., A COLORADOCORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2006, AS INSTRUMENT NO.Z006-0756951OFOFFICIALRECORDSOF SAIDCOUNTY.SAIDINTERESTIS FURTHER DESCRIBEDAS FOLLOWS:

A.ANYANDALL(I) OILRIGHTS,(II) MINERALRIGHTS,(III) NATURALGASRIGHTS,(IV) RIGHTSTO ALLOTHERHYDROCARBONS BYwHATsOEvERNAMEKNOWN,(v) GEOTHERMAL

HEATRIGHTSORGEOTHERMALSUBSTANCESTHATMAYBEPRODUCEDFROMTHE PROPERTY, (V1)WATERRIGHTSANDCLAIMSOR RIGHTSTOwATERAND(VII) ALLPRODUCTSDERIVED FROMANYOFTHE FOREGOING(COLLECTIVELY, "SUBSURFACERESOURCES")LOCATEDIN OR

UNDERTHATCERTAINREALPROPERTYSITUATEDIN THECOUNTYOF RIVERSIDE,STATEOF CALIFORNIADESCRIBEDIN EXHIBIT"A"ATTACHEDHERETOANDINCORPORATEDHEREIN (THE"PROPERTY"),To THE EXTENTSUCHSUBSURFACERESOURCESHAVENOTBEEN PREVIOUSLYRESERVED;AND
B.THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,

STOREANDREMOVEANYOFTHE SUBSURFACERESOURCESONORFROMTHEPROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTO WHIPSTOCKOR DIRECTIONALLYDRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,

THROUGHOR ACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO BOTTOMSUCH

WHIPSTOCKEDOR DIRECTIONALLY DRILLEDWELIS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHEEXTERIORLIMITSOF THE PROPERTY,ANDTO REDRILL,RETUNNEL,EQUIP,

MAINTAIN,REPAIR,DEEPENANDOPERATEANYSUCHWELLSOR MINES,BUTWITHOUTTHE

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

SUBSURFACERESOURCESTHROUGHOR IN THESURFACEOFTHEPROPERTYORTHE UPPER FIVEHUNDRED(500) FEETOFTHESUBSURFACEOFTHEPROPERTY.)
PARCELNO. 3:

THEEAST‘/2 OFTHESOUTHWEST‘/4,ANDTHE EAST‘/2OFTHENORTHEAST‘A OFTHE NORTHWEST‘AOFTHESOUTHWEST‘AOF SECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST,

SANBERNARDINOBASEANDMERIDIAN,STATEOFCALIFORNIA,ACCORDINGTO THE OFFICIALGOVERNMENTPLATTHEREOF.

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

EXCEPTINGTHEREFROMANYPORTIONLYINGWITHINTRACT32030-1 AS SHOWNON FILEIN BOOK404 PAGES67 THROUGH75 OF MAPS,RECORDSOF RIVERSIDECOUNTY,CALIFORNIA. 741844.02/SD
142922-00008/5-4-I0/tbs:/Djb -13-

Page 144 of 296 ends

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

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

RIGHTSTO ALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(V) GEOTHERMAL

STOREANDREMOVEANYOF THE SUBSURFACERESOURCESONOR FROMTHEPROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTO WHIPSTOCKOR DIRECTIONALLYDRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,

THROUGHORACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO BOTTOMSUCH

WHIPSTOCKEDOR DIRECTIONALLYDRILLEDWELLS,TUNNELSANDSHAHSWITHIN OR

BEYONDTHE EXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL,RETUNNEL,EQUIP,

MAINTAIN,REPAIR,DEEPENANDOPERATEANYSUCHWELLSOR MINES,BUTWITHOUTTHE

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

SUBSURFACERESOURCESTHROUGHORINTHESURFACEOFTHE PROPERTYORTHEUPPER FIVEHUNDRED(500) FEETOF THESUBSURFACEOFTHEPROPERTY.)
PARCELNO.4:

THATPORTIONOF THEEAST‘/2OFSECTION29, TOWNSHIP2 SOUTH,RANGE3 EAST,SAN

BERNARDINOBASEANDMERIDIAN,STATEOFCALIFORNIA,ACCORDINGTO THEOFFICIAL GOVERNMENTPLATTHEREOF.

COMMENCINGAT THESOUTHEASTCORNEROF SAIDSECTION29,’THENCENORTHERLY ALONGTHEEASTERLYBOUNDARYOFSAIDSECTION29, A DISTANCEOF 1483 FEETTO THE TRUEPOINTOF BEGINNING;THENCEWESTERLYANDPARALLELWITHTHE SOUTHERLY BOUNDARYOFSAIDSECTION29, A DISTANCEOF 528 FEET;THENCENORTHERLYAND PARALLELWITHTHE EASTERLYBOUNDARYOF SAIDSECTION29, A DISTANCEOF 577 FEET; THENCEEASTERLYLANDPARALLELWITHTHE SOUTHERLYBOUNDARYOF SAIDSECTION29, A DISTANCEOF 528 FEETTO THE EASTERLYBOUNDARYOF SAIDSECTION29; THENCE SOUTHERLYALONGTHEEASTERLYBOUNDARYOF SAIDSECTION29, ADISTANCEOF 577 FEETTO THETRUEPOINTOF BEGINNING.

ALSOEXCEPTINGTHEREFROMALLTHATINTERESTCONVEYEDT0 DRHENERGY,INC., A COLORADOCORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2006, AS INSTRUMENT NO. 2006-0756951OF OFFICIALRECORDSOF SAIDCOUNTY.SAIDINTERESTIS FURTHER DESCRIBEDAS FOLLOWS:

A. ANYANDALL(I) OIL RIGHTS, (II) MINERALRIGHTS,(III) NATURALGASRIGI-TTS,(IV) 741844.02/SD
142922-00008/5-4-I0/Ibo/cjb -14-

Page 145 of 296 ends

RIGHTSTO ALLOTHERHYDROCARBONSBYWHATSOEVERNAMEKNOWN,(V)GEOTHERMAL

HEATRIGHTSOR GEOTHERMALSUBSTANCESTHATMAYBEPRODUCEDFROMTHE PROPERTY, (VI) WATERRIGHTSANDCLAIMSOR RIGHTST0 WATERAND(VII) ALLPRODUCTSDERIVED FROMANYOFTHE FOREGOING(COLLECTNELY,"SUBSURFACERESOURCES")LOCATEDIN OR

STOREANDREMOVEANYOFTHE SUBSURFACERESOURCESONORFROMTHEPROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTO WHIPSTOCKOR DIRECTIONALLYDRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,

THROUGHORACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO BOTTOMSUCH

WHIPSTOCKEDOR DIRECIIONALLYDRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHEEXTERIORLIMITSOFTHE PROPERTY,ANDTO REDRILL,RETUNNEL, EQUIP,

MAINTAIN,REPAIR,DEEPENANDOPERATEANYSUCHWELLSOR MINES,BUTWITHOUTTHE

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

SUBSURFACERESOURCESTHROUGHORIN THE SURFACEOFTHEPROPERTYORTHEUPPER FIVEHUNDRED(500) FEETOFTHESUBSURFACEOFTHEPROPERTY.)
PARCELNO. 5:

THATPORTIONOFTHE EAST‘/2OF SECTION29, TOWNSHIP2 SOUTH,RANGE4 EAST,SAN

BERNARDINOBASEANDMERIDIAN, STATEOF CALIFORNIA,ACCORDINGTO THEOFFICIAL GOVERNMENTPLATTHEREOF.

COMMENCINGATTHESOUTHEASTCORNEROF SAIDSECTION29; THENCEWESTERLYALONG THESOUTHERLYBOUNDARYOFSAIDSECTION29, A DISTANCEOF 528 FEETTO THETRUE POINTOF BEGINNING;THENCECONTINUINGWES'TERLYALONGTHESAIDSOUTHERLY BOUNDARYOF SAIDSECTION29, A DISTANCEOF 528 FEET;THENCENORTHERLYAND PARALLELWITHTHEEASTERLYBOUNDARYOF SAIDSECTION29, ADISTANCEOF 2640 FEET; THENCEEASTERLYANDPARALLELWITHTHESOUTHERLYBOUNDARYOF SAIDSECTION29, A DISTANCEOF 528 FEET;THENCESOUTHERLYANDPARALLELWITHTHEEASTERLYBOUNDARY OF SAIDSECTION29, A DISTANCEOF 2640 FEETTO THETRUEPOINTOFBEGINNING.

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

A. ANYANDALL(I) oIL RIGHTs,(II) MINERALRIGHTS,(III) NATURALGASRIGHTS,(IV) RIGHTSTO ALLOTHERHYDROCARBONSBYWHATSOEVERNAMEKNOWN,(v) GEOTHERMAL

HEATRIGHTSORGEOTHERMALSUBSTANCESTHATMAYBEPRODUCEDFROMTHE PROPERTY, (v1) WATERRIGHTSANDCLAIMSOR RIGHTSTO WATERAND(VII) ALLPRODUCTSDERIVED FROMANYOFTHE FOREGOING(COLLECTIVELY, "SUBSURFACERESOURCES“)LOCATEDIN OR UNDERTHATCERTAINREALPROPERTYSHUATEDINTHECOUNTYor RIVERSIDE,STATEOF CALIFORNIADESCRIBEDIN EXHIBIT"A"ATTACHEDHERETOANDINCORPORATEDHEREIN (THE"PROPERTY"),TO THE EXTENTSUCHSUBSURFACERESOURCESHAVENOTBEEN PREVIOUSLYRESERVED;AND
B. THE PERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,

STOREAND REMOVEANYOF THESUBSURFACERESOURCESON OR FROMTHEPROPERTY, 741844.02/SD
142922-00008/5-4-10/the/cjb -15—

Page 146 of 296 ends

INCLUDINGWITHOUTLIMITATIONTHERIGHTTO WHIPSTOCKORDIRECFIONALLY DRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,

THROUGHORACROSSTHESUBSURFACEOFTHE PROPERTY,ANDTO BOTTOMSUCH

WHIPSTOCKEDORDIRECTIONALLYDRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL,RITUNNEL,EQUIP,

MAINTAIN,REPAIR,DEEPENANDOPERATEANYSUCHWELLSORMINES,BUTWITHOUTTHE

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

SUBSURFACERESOURCESTHROUGHORINTHE SURFACEOFTHE PROPERTYORTHEUPPER FIVEHUNDRED(500) FEETOFTHESUBSURFACEOFTHEPROPERTY.)
PARCEL8: (APN'S: 667-080-002THROUGH004 AND006)
TENTATIVE(TRACT)MAP32030-7, BEINGA SUBDIVISIONOFTHEFOLLOWINGDESCRIBED PROPERTY:

PARCELNO. 1
THATPORTIONOF THE NORTHWEST‘/4OFTHENORTHWESTI/AOF SECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST,SANBERNARDINOBASEANDMERIDIAN,STATEOF CALIFORNIA, ACCORDINGTO THEOFFICIALGOVERNMENT PLATTHEREOF.

BEGINNINGATTHESOUTHEASTCORNEROFTHE NORTHWEST‘/4OF THE NORTHWEST‘/4,OF SAIDSECTION;THENCEWESTERLY,ONTHESOUTHLINEOF SAIDNORTHWEST‘/4OFTHE NORTHWEST‘/4980.5 FEET,TOTHEEASTLINEOFTHATCERTAIN60 FOOTROADKNOWNAS 29 PALMSHIGHWAY;THENCENORTH23° 01‘ 13" EASTONTHENORTHLINEOF SAIDSECTION 390.71 FEETTO THENORTHEASTCORNEROF THENORTHWEST‘/4OFTHE NORTHWEST‘/4OF SAIDSECTION;THENCESOUTH0° 09' 30" EAST,ONTHE EASTLINEOFTHE SAID NORTHWEST‘/4OFTHENORTHWEST‘£1OF SAIDSECTION,1380.18FEET,TO THE POINTOF BEGINNING.

EXCEPTINGTHEREFROMONEHALFOFALLOIL,GASANDOTHERHYDROCARBON SUBSTANCES UNDERLYINGSAIDLANDAND‘/2OF ALLOTHERMINERALS,AS RESERVEDIN DEEDFROM JOSEPHR. TROTTER,HUSBANDANDWIFEFILEDFORRECORDMARCH30, 1955ASBOOK1715 PAGE572 OF OFFICIALRECORDSOFSAIDCOUNTY.

SAIDPROPERTYIS ALSOSHOWNAS PARCEL2, 3 AND4 ON RECORDOF SURVEYONFILEIN BOOK27 PAGE65 OF RECORDSOFSURVEY,RECORDSOFRIVERSIDECOUNTY,CALIFORNIA.

A. ANYANDALL(I) OILRIGHTS,(II) MINERALRIGHTS,(III) NATURALGASRIGHTS,(IV) RIGHTSTo ALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(v) GEOTHERMAL

UNDERTHATCERTAINREALPROPERTYSTTUATEDINTHECOUNTYOF RIVERSIDE,STATEOF CALIFORNIADESCRIBEDIN EXHIBIT"A"ATTACHEDHERETOANDINCORPORATEDHEREIN (THE "PROPERTY"),To THEE)('TENT SUCHSUBSURFACERESOURCESHAVENOTBEEN PREVIOUSLYRESERVED;AND
741844.02/SD
142922-oooos/54.1o/the/cjb -16-

Page 147 of 296 ends

B.THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,

STOREANDREMOVEANYOFTHESUBSURFACERESOURCESONORFROMTHEPROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTOWHIPSTOCKOR DIRECTIONALLYDRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,

THROUGHOR ACROSSTHE SUBSURFACEOFTHE PROPERTY,ANDTO BOTTOMSUCH

WHIPSTOCKEDOR DIRECTIONALLYDRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHE EXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL,RETUNNEL,EQUIP,

MAINTAIN,REPAIR,DEEPENANDOPERATEANYSUCHWELLSOR MINES,BUTWITHOUTTHE

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

SUBSURFACERESOURCESTHROUGHORIN THESURFACEOFTHEPROPERTYORTHEUPPER FIVEHUNDRED(500) FEETOFTHESUBSURFACEOFTHEPROPERTY.)
PARCELNO. 2
THESOUTH‘/2OF THE NORTHWEST‘A OF SECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST,

SANBERNARDINOBASEANDMERIDIAN,STATEOFCALIFORNIA,ACCORDINGTO THE OFFICIALGOVERNMENTPLATTHEREOF.

A. ANYANDALL(I) OILRIGHTS,(II) MINERALRIGHTS,(III) NATURALGASRIGHTS,(IV) RIGHTSTO ALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(v) GEOTHERMAL

HEATRIGHTSORGEOTHERMALSUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY, (VI) wATERRIGHTSANDCLAIMSOR RIGHTSTOWATERAND(VII) ALLPRODUCTSDERIVED FROMANYOFTHE FOREGOING(COLLECTIVELY, "SUBSURFACERESOURCES")LOCATEDIN OR UNDERTHATCERTAINREALPROPERTYsmJATEDINTHECOUNTYOF RIVERSIDE,STATEOF CALIFORNIADESCRIBEDIN EXHIBIT"A"ATTACHEDHERETOANDINCORPORATEDHEREIN (THE"PROPERTY"),TO THE EXTENTSUCHSUBSURFACERESOURCESHAVENOTBEEN PREVIOUSLYRESERVED;AND
B. THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,

STOREANDREMOVEANYOFTHESUBSURFACERESOURCESONOR FROMTHE PROPERTY,

INCLUDINGWITHOUTLIMITATIONTHE RIGHTTO WHIPSTOCKOR DIRECTIONALLYDRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,

THROUGHOR ACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO BOTTOMSUCH

WHIPSTOCKEDORDIRECTIONALLYDRILLEDWELLS,TUNNELSANDSHAT-TSWITHINOR

BEYONDTHEEXTERIORLIMITSOFTHE PROPERTY,ANDTO REDRILL,RETUNNEL, EQUIP,

MAINTAIN,REPAIR,DEEPENANDOPERATEANYSUCHWELLSOR MINES,BUTWITHOUTTHE

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

PARCELNO. 1
THE NORTHEAST‘A:OF THE NORTHWEST‘/AANDTHENORTH‘/2 OF THE NORTHEAST‘/1OF 741344.02/sD
142922-00008/5-4-10/tbc/cjb -17-

Page 148 of 296 ends

SECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST,SANBERNARDINOBASEANDMERIDIAN, STATEOF CALIFORNIA,ACCORDINGTO THEOFFICIALGOVERNMENTPLATTHEREOF.

EXCEPTINGTHEREFROMANYPORTIONLYINGWITHINTRACT32030-10ASSHOWNON FILEIN BOOK419 PAGES40 THROUGH47 OF MAPS,RECORDSOF RIVERSIDECOUNTY,CALIFORNIA.

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

RIGHTSTO ALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(V)GEOTHERMAL

UNDERTHATCERTAINREALPROPERTYSTTUATEDIN THECOUNTYOF RIVERSIDE,STATEOF CALIFORNIADESCRIBEDIN EXHIBIT"A“ATTACHEDHERETOANDINCORPORATEDHEREIN (THE"PROPERTY"),TO THEB(TENT SUCHSUBSURFACERESOURCESHAVENOTBEEN PREVIOUSLYRESERVED;AND
B.THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,

STOREANDREMOVEANYOFTHESUBSURFACERESOURCESONORFROMTHE PROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTO WHIPSTOCKORDIRECTIONALLYDRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAI-TSINTO,

THROUGHORACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO BOTTOMSUCH

WHIPSTOCKEDOR DIRECTIONALLYDRILLEDWELIS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHE EXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL,RETUNNEL,EQUIP,

MAINTAIN,REPAIR,DEEPENANDOPERATEANYSUCHWELLSORMINES,BUTWITHOUTTHE

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

SUBSURFACE RESOURCESTHROUGHORIN THESURFACEOFTHEPROPERTYORTHEUPPER FIVEHUNDRED(500) FEETOFTHESUBSURFACEOFTHEPROPERTY.)
PARCELNO. 2:

THE SOUTH‘/2OFTHENORTHWEST‘/1OFSECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST,

SANBERNARDINOBASEANDMERIDIAN,STATEOF CALIFORNIA,ACCORDINGTO THE OFFICIALGOVERNMENTPLATTHEREOF.

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

RIGHTSTO ALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(V) GEOTHERMAL

UNDERTHATCERTAINREALPROPERTYSTTUATEDIN THE COUNTYOF RIVERSIDE,STATEOF CALIFORNIADESCRIBEDIN EXHIBIT"A"ATTACHEDHERETOANDINCORPORATEDHEREIN (THE "PROPERTY“),TO THEEXTENTSUCHSUBSURFACERESOURCESHAVENOT BEEN PREVIOUSLYRESERVED;AND
741344.02/so
I42922-00008/5-4-I0/Lbc/cjb -18-

Page 149 of 296 ends

B. THE PERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,

STOREANDREMOVEANYOFTHE SUBSURFACERESOURCESON ORFROMTHEPROPERTY,

INCLUDINGWITHOUTLIMITATIONTHE RIGHTTOWHIPSTOCKOR DIRECTIONALLY DRILLAND

MINE,FROMLANDSOTHERTHANTHE PROPERTY,WELLS,TUNNELSANDSHAITSINTO,

THROUGHORACROSSTHESUBSURFACEOFTHE PROPERTY,ANDTOBOTTOMSUCH

WHIPSTOCKEDOR DIRECTIONALLYDRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL,RETUNNEL,EQUIP,

MAINTAIN,REPAIR,DEEPENANDOPERATEANYSUCHWELLSORMINES,BUTWITHOUTTHE

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

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

PARCELNO. 1
THATPORTIONOF THE NORTHWEST‘/4OFTHENORTHWEST‘/4OFSECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST,SANBERNARDINOBASEANDMERIDIAN,STATEOFCALIFORNIA, ACCORDINGTO THE OFFICIALGOVERNMENTPLATTHEREOF.

BEGINNINGATTHESOUTHEASTCORNEROFTHE NORTHWEST‘/4OFTHENORTHWEST‘/4,OF SAIDSECTION;THENCEWESTERLY,ONTHESOUTHLINEOF SAIDNORTHWEST‘/4OFTHE ‘NORTHWEST ‘/4980.5 FEET,TO THEEASTLINEOFTHATCERTAIN60 FOOTROADKNOWNAS 29 PALMSHIGHWAY;THENCENORTH23° 01' 13" EASTONTHE NORTHLINEOF SAIDSECTION 390.71 FEETTO THENORTHEASTCORNEROFTHENORTHWEST‘/1OFTHE NORTHWEST‘/4OF SAIDSECTION;THENCESOUTH0° 09' 30" EAST,ONTHEEASTLINEOFTHESAID NORTHWEST‘/4OFTHE NORTHWEST‘AOF SAIDSECTION,1380.18FEET,TO THEPOINTOF BEGINNING.

EXCEPTINGTHEREFROMONE HALFOF ALLOIL,GASANDOTHERHYDROCARBONSUBSTANCES UNDERLYINGSAIDLANDAND‘/2OF ALLOTHERMINERALS,ASRESERVEDIN DEEDFROM JOSEPHR.TROTTER,HUSBANDANDWIFEFILEDFORRECORDMARCH30, 1955 ASBOOK1715 PAGE572 OF OFFICIALRECORDSOFSAIDCOUNTY.

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

RIGHTSTO ALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(V) GEOTHERMAL

UNDERTHATCERTAINREALPROPERTYSITUATEDIN THE COUNTYOF RIVERSIDE,STATEOF CALIFORNIADESCRIBEDIN EXHIBIT“A"ATTACHEDHERETO‘ANDINCORPORATEDHEREIN (THE "PROPERTY"),TO THEEXTENT’SUCHSUBSURFACERESOURCESHAVENOTBEEN PREVIOUSLYRESERVED;AND
741844.02/SD
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Page 150 of 296 ends

B.THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,

STOREANDREMOVEANYOFTHESUBSURFACERESOURCESONORFROMTHEPROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTOWHIPSTOCKOR DIRECTIONALLY DRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELIS,TUNNELSANDSHAFTSINTO,

THROUGHORACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO BOTTOMSUCH

WHIPSTOCKEDOR DIRECTIONALLYDRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHE EXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL,RETUNNEL, EQUIP,

MAINTAIN,REPAIR,DEEPENANDOPERATEANYSUCHWELISOR MINES,BUTWITHOUTTHE

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

SUBSURFACERESOURCESTHROUGHORIN THESURFACEOFTHEPROPERTYORTHE UPPER FIVEHUNDRED(500) FEETOFTHE SUBSURFACEOFTHEPROPERTY.)
SAIDPROPERTYIS ALSOSHOWNAS PARCEL2, 3 AND4 ON RECORDOF SURVEYON FILEIN BOOK27 PAGE65 OF RECORDSOF SURVEY,RECORDSOF RIVERSIDECOUNTY,CALIFORNIA.

PARCELNO. 2
THENORTHEAST‘/4OFTHENORTHWEST‘/4ANDTHENORTH‘/2OFTHENORTHEAST‘/1OF SECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST,SANBERNARDINOBASEANDMERIDIAN, STATEOFCALIFORNIA,ACCORDINGTO THE OFFICIALGOVERNMENTPLATTHEREOF.

EXCEPTINGTHEREFROMANYPORTIONLYINGWITHINTRACT32030-10AS SHOWNON FILEIN BOOK419 PAGES40 THROUGH47 OF MAPS,RECORDSOF RIVERSIDECOUNTY,CALIFORNIA.

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

RIGHTSTO ALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(V)GEOTHERMAL

STOREANDREMOVEANYOFTHE SUBSURFACERESOURCESONORFROMTHEPROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTO WHIPSTOCKOR DIRECTIONALLY DRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,

THROUGHOR ACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO BOTTOMSUCH

WHIPSTOCKEDORDIRECTIONALLYDRILLEDWELLS,TUNNEISANDSHAFISWITHINOR

BEYONDTHE EXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL,RETUNNEL,EQUIP,

MAINTAIN,REPAIR,DEEPENANDOPERATEANYSUCHWELLSOR MINES,BUTWITHOUTTHE

RIGHTTO DRILL,MINE,D(PLORE, OPERATE,PRODUCE,STOREORREMOVEANYOFTHE

SUBSURFACERESOURCESTHROUGHOR IN THESURFACEOFTHEPROPERTYORTHEUPPER FIVEHUNDRED(500) FEETOFTHE SUBSURFACEOFTHE PROPERTY.)
PARCELNO. 3
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Page 151 of 296 ends

THESOUTH‘/2OFTHENORTHWEST‘/4 OF SECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST,

SANBERNARDINOBASEANDMERIDIAN,STATEOFCALIFORNIA,ACCORDINGTO THE OFFICIALGOVERNMENTPLATTHEREOF.

A.ANYANDALL(I) OILRIGHTS,(II) MINERALRIGHTS,(III) NATURALGASRIGHTS,(IV) RIGHTSTO ALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(v) GEOTHERMAL

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

STOREANDREMOVEANYOFTHESUBSURFACERESOURCESONORFROMTHEPROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTO WHIPSTOCKOR DIRECTIONALLYDRILLAND

MINE,FROMIANDSOTHERTHANTHEPROPERTY,WELIS,TUNNELSANDSHAFTSINTO,

THROUGHORACROSSTHESUBSURFACEOFTHE PROPERTY,ANDTO BOTTOMSUCH

WHIPSTOCKEDORDIRECTIONALLY DRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL,RETUNNEL,EQUIP,

MAINTAIN,REPAIR,DEEPENANDOPERATEANYSUCHWELLSOR MINES,BUTWITHOUTTHE

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

SUBSURFACERESOURCESTHROUGHORINTHESURFACEOFTHEPROPERTYORTHEUPPER FIVEHUNDRED(500) FEETOFTHESUBSURFACEOFTHEPROPERTY.
741844.02/SD
142922-00008/S—4<l0/tbc/cjb -21-

Page 152 of 296 ends

RECORDING REQUESTEDBY AND
WHEN RECORDED MAIL TO:

City of Desert Hot Springs
Attn: City Clerk
11999 Palm Drive.

Desert Hot Springs, California 92240
APN:
(SPACE ABOVE FOR RECORDER'SUSE)

I (EXEMPT FROM RECORDING FEESPURSUANT TO GOVERNMENT CODE 9 SECTIONS 6103 AND27383) I
E
“
First Amendmentto Lien Contract
1

Page 153 of 296 ends

AMENDMENT TO LIEN CONTRACT

BY AND BETWEEN

THE CITY OF DESERT HOT SPRINGS
AND

SKYBORNE VENTURES LLC
TRACT NUMBER 32030
THIS AMENDMENT TO LIEN CONTRACT (“Amendment”), is made and enteredinto as of the day of , 2023, by and between the City of Desert Hot Springs, a municipal corporation, in the County of Riverside,State of California, hereinafter referred to as the "City,” and Skyborne Ventures, LLC, a California limited liability company, hereinafter , referred to as ,"Developer,",with the City and Developersometimes together referred to herein as the “Parties” or individuallyas “Party.”

RECITALS
WHEREAS, the Parties previously entered into that certain Lien Contract dated March 313‘,2010 (“Contract”).and recordedin the Official Records of Riverside County as Document 1 Number,2010—023626,6,:, which servesiassecurity for the City in connection with Developer’s lconstructionof thelmprovementsi in connection with development of Skyborne Development Tract Map No. 32030, a copy of whichContract being attachedhereto and incorporatedherein by this reference as Exhibit “A”; and
, _ WHEREAS, as re?ected in the Contract, Developer granted the Lien against the Property —inthe amount of$9,526,476,asrsecurityefor completion of the Improvements, all as provided in the Contract; and
L
,2 WHEREAS, the Property’ is‘generallydescribedas Skyborne Villages 3, 4, 5, 6, 7, 8, 9, and 10, and is further describedin Exhibit A to the Contract; WHEREAS, an appraisal report was prepared byTheProperty Sciences Group Inc, dated January 17, 2022 (“Updated Appraisal Report”), which establisheda value for Skyborne Village 5 at $18,940,000; and
WWHEREAS, ‘thusfar, Developer has completed a portion of the Improvements, more _ speci?cally thestreet improvements and storm drainimprovementsfor exterior streets and interior ’ streets,equivalentto avalue of $1,659,100 and these Improvements were completedbetween2006 and 2010 and inspected, con?nned and accepted by the City Engineer on May 2, 2022; WHEREAS, the Parties now desire to amend the Contract to re?ect a reduction in the amount of the Lien to account for certain Improvements already completedby Developer, as well as to add a 10% estimated construction in?ation to the engineer’s estimate from 2010, and to releaseportions of the Property which serve as security for the Lien.

NOW THEREFORE, in consideration of the foregoing recitals and other good and valuable considerationthe receipt and adequacy of which is hereby acknowledged, the Parties First Amendmentto Lien Contract
2

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hereby agree as follows:

AGREEMENT
Section 1. RECITALS
The Recitals set forth above are hereby incorporated into this Amendment by this reference, as though fully set forth herein.

Section 2. DEFINITIONS AND TERMS
All words, terms and phrases used or referenced in this Amendment,not expressly de?ned in this Amendment,shallhave the same meaning ascribed to them in the Contract.

Section 3.,
, ALTERNATIVE FORM OF SECURITY/EFFECT OF LIEN
CONTRACT.

Section—2of the Contract is deletedin its entirety and is replaced as follows:
“AlternativeForm of Security/Effect of Lien Contract. In lieu of the Bonds as‘ security for the performance of the obligations set forth in Section 1 above, Developer hereby grants to City a lien upon the Property in the amount of $8,654,114 plus any future advancesin excess of this sum resulting from increased constructioncosts of the Improvements (the “Lien”). The amount of the Lien is ==allocatedto zeachofthe Agreements in the amounts shown on Schedule 1. The amount‘ of the Lien shall automatically be reduced as the Improvements are ‘completed by an amount equal to the amount of security required for such Improvementunder the applicableAgreement as shownin Schedule 1. City hereby agrees that notwithstanding anything to the contrary set forth in the Agreements, Developer shall not be deemed in breach of the Agreements by virtue of . withdrawingthe Bonds. Within thirty (30) days after the recordationof this Lien Contract, the City shall exonerate and release the Bonds and return the Bonds to the person or entity which posted such Bonds. In the event Developer, its successors,heirs, assigns or transferees fail to (i) install and construct the , Improvements in the time and manner required under the applicable Agreement * following theexpiration of any and all applicablenotice and cure periods; or (ii) paythe Security Fee as required under’Section 5 below (in either case,an "Event of Default"), City may exercise its rights or remedies under this Lien Contract if Developerfails to cure any such Event of Default within thirty (30) days of City’s written notice to Developer specifying in reasonable detail the nature of such default. If such default is of such a character as to require more than thirty (30) daysto cure, said thirty (30) day period stallbe extended to include such additional time as is reasonably necessary to cure such default. Upon the occurrence of an Event of Default and Developer'ssubsequentfailure to cure such defaultwithin the time period set forth in this Section 2, Developer agrees that the City may install and construct, or cause the installation and construction of the Improvements First Amendmentto Lien Contract
3

Page 155 of 296 ends

which are the subject of such Event of Default. City or its contractor may enter upon the Property as reasonably necessary to construct such Improvements.

Developer or its successors, heirs, assigns or transferees shall reimburse City for the cost of such Improvements upon their completion. In the event such costs are not paid to City withinninety (90) days from completion,City may foreclose this lien as provided by law for the foreclosure of mortgages.” Section 4. RELEASE,’ SUBORDINATION.

Section 3 of the Contract is deleted in its entirety and is replaced as follows:
“Release Subordination. This Lien Contract may be released in whole or in part and may be subordinatedto other liens or encumbrancesif the City Manager or his/her designee determinesthat the obligation to construct the Improvements is sufficiently secured by a lien on other property or that the release or subordination of the lien will not jeopardize the completion of the Improvements, and any such subordination must first be approved in writing by the City Manager or his/her _._designeeinits reasonable discretion. Without limiting the foregoing, Developer C _;mayobtain andCity Manager or his/her designee shall grant the partialrelease (the *"Partial Release") ‘of any portion of the Property comprising of one or more subdivided lots within the Property or phases or tracts within the Property (the "Released Lots/Phases") from this Lien Contract, if at the time of the request for the Partial Release: (a) Developer provides new performance and labor and materialsbondsreasonably acceptable to the City Manager or his/her designee or pursuant to the terms and conditionsof the applicable Agreement with respect to such Released Lots/Phases; or (b) Developer has substantially completed the required Improvements on the Released Lots/Phases; or (c) Developer 7 i .demonstrates_(bydelivery of an appraisal or other methodreasonableacceptableto Z the City Manager or his/herdesignee)thatthe Lien—to—Value Ratio ( definedbelow) with respect to the Remaining Property ( de?ned below) is not greater than ?fty percent (50%). The “Lien-to-Value Ratio” shallmean the ratio of (i) the amount of security for the constructionof the Improvements requiredunderthe then remaining Agreements with respect to the Property, to (ii) the fair market value of the Remaining Property. “RemainingProperty” shallmean that portion of the Property “remaining subject to this Lien Contract upon or after the release of Released Lots/Phases from this Lien Contract. Developer agrees that prior to the issuance of any permitsto commence construction of improvements on or with respect to any i Released Lots/Phases within the Property, the Developer shall deliver to City Manager or his/her designee in accordancewith the City's General Guidelines on Useof FinancialAssurances And Security ProvidedBy MunicipalCode,California Government Code and the Subdivision Map Act," a performance bond, cash or an acceptableletter of credit equal to the cost of the improvements to be constructed thereon,and suchReleasedLots/Phaseswill be released from the Lien Contract as provided above and the amount of the Lien shall be reduced commensurately.

During the term of this Lien Contract, Developer agrees to provide the maintenance necessary to keep the existing PM-10 permit and the SWPPP and its applicable First Amendmentto Lien Contract
4

Page 156 of 296 ends

permits in complianceon the Property.”
Section 5. SECURITY FEE.

In exchange for the payment of One HundredThousand andNo/100 Dollars($100,000.00), Section 5 of the Contract shallbe deletedin its entirety and City shall release Developerfrom any and all claims or causes of action City may have now or in the future based upon Developer’s obligation to pay the Security Fee.

Section 6. PARTIAL RELEASE.

Pursuant to Section 3 of the Contract, Developerhasdemonstrated,through the delivery of the UpdatedAppraisal Report, thattheLien-to—ValueRatio supports the Partial Release of Villages 3, 4, 6, 7, 8, 9 and 10 of the Property from the Contract such that the fair market value of Village 5 maintains a Lien-to-Value Ratio that is not greater than ?fty percent (50%) for the Remaining Property that would result from the Partial Release of Villages 3, 4, 6, 7, 8, 9 and 10. Attached c
— hereto and incorporated herein as Exhibit “B” is the legal description for the real property ' comprising Village 5 oftheAProperty.,City shall record a release in the form set forth as Exhibit , “C’3attached hereto andoincorporatedihereinconcurrently with recordation of this Amendment.

Section 7. RECORDATION
This Amendment shall be recorded in the Official Records of Riverside County solely as to the real property comprising Village 5 of the Property. c a
Section 8. ATTORNEY'S FEES
In the event any action, suit or proceeding is brought for the enforcement of, or the A declarationof any right or obligation pursuant to the Contract or this Amendment or as a result of any alleged breach of any provision of the Contract or this Amendment,the prevailing party in such suit or proceeding shall beentitled to recover its costs and expenses, including reasonable attorney's fees and expert witness costs, and any judgment or decree renderedin sucha proceeding shall include an awardthereof.

Section 9. COUNTERPARTS
This Amendment maybe executed in any number of counterparts and each of such7 counterparts shall for all purposes be deemed to be an original; and all such counterparts shall together constitutebut one and the same Amendment.

Section 10. CONFLICTS
In the event there exists any conflicts between the terms of this Amendment and the Contract, the terms of this Amendmentshallbe superseding.

Section 11. REMAINING PROVISIONS
First Amendmentto Lien Contract
5

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All other remaining terms and conditions of the Contract shall remain unchanged. [THE REMAINDER OF THIS PAGE LEFT INTENTIONALLY BLANK]
First Amendmentto Lien Contract
6

Page 158 of 296 ends

IN WITNESS WHEREOF, the Parties hereto have caused this Amendment to be executed as of the date first written above.

CITY OF DESERT HOT SPRINGS SKYBORNE VENTURES, LLC, a
— California limited liability company
BY: LANSING STRATEGIC
MANAGEMENT, LLC a California
limited liability company
Doria Wilms, Interim City Manager
C BY: JK-RIVERWOODS, LLC, A

CALIFORNIA LIMITED
ATTEST: ” LIABILITY COMPANY
,
’

T ITS GENERAL PARTNER
BY:

Jerry1,Soriano,{City;C1erk JAMES M. KOZAK
, ,_,c.
,
,
'7 ITS: SOLE MEMBER
APPROVED AS TO FORM:

Jennifer Mizrahi, City Attorney
First Amendmentto Lien Contract
7

Page 159 of 296 ends

EXHIBIT “A”

LIEN CONTRACT

SEE ATTACHED
First Amendmentto Lien Contract
8

Page 160 of 296 ends

DOC 83 2010-0236266‘
05/21/2610
Customer Co Label
= RECORDING REQUESTEDBY Thefpgepgg ?gsugéihbig?scggggrl eés FIRST AMERICANFUND CONTROL, INC. a mil-(,hthe recorded document AND ’ WHENRECORDED MAILTO: LarryllHard
V County o Riverside
Qssessor, County Clerk 8: Recorder -o
' IA copy)
te?nwwmmwm

LIEN CONTRAT
FIRST AMERICANFUND CONTROL, INC.
200 COMMERCE
IRVINE, CA 92602
6 6 THIS LIEN CONTRACT (“Lien Contract") is entered into tl1is2Z::_day of March, 2010, byand between the City of Desert Hot Springs ("City") and Skybome Ventures LLC, a Delaware limited liability company ("Developer").
' RECITALS
‘J ’A. , ::_Developer is the‘rc‘u_'_r._1'rent ownr of that certainreal property situatedin the City of if Desert Hot Springs,County of Riverside,State of California, as more particularlydescribedon V; ~.= “Exhibit"A"attachedhereto and incorporatedherein ("Property").

V B. ; In accordance with the Subdivision Map Act (California Government Code Section 66410, et seq.), Developer’s predecessor in interest posted bonds with the City in connectionwiththe City's approval of the finalmap(s) for the Property.

C. I 2 Pursuant to California Government Code Section 66499(a)(4), the City is authorizedto accept the alternate securityproposed by Developer. Developer and City desire to substitutethis Lien Contractforthe bonds postedwith the City.

NOW, THEREFORE,forvaluableconsideration, the receiptand sufficiency of which are hereby acknowledged,the partieshereto agree as follows: "

1. Develo;_3_er’s Performance. Developerhas agreed (or has assumedthe obligations) to constuct the improvements previously approved by the City in connection with the development of the Property (the "Improvements”)pursuant to those certain subdivision improvement agreements more particularly set forth in Schedule1 attached hereto and incorporated‘herein (collectively referredto herein as the “Agreements”). Pursuant to the Agreements, Developeror its predecessorin interestdelivered to the City the performance and labor and material bonds more particularly set forth in Schedule attached hereto and’ incorporatedherein (“Bonds”).

2. Alternative,Form_p_f._§ecuritty(_Effecto_f;_L_i§nContract In lieu of the Bonds as security for the performanceof the obligations set forth in Section 1 above, Developer hereby grants to City, effective as of the date of recordation of this Lien Contract, a lien upon the Property in the initial amount of $9,526,476.00 plus any future advancesin excess of this sum resulting from increasedconstructioncosts of the Improvements(the “Lien”). Theamount of the 347/020269-0040
l0369l6.072103/23/l0

Page 161 of 296 ends

Lien is allocated to eachof the Agreements in the amounts shown on Schedule1. The amount of the Lien shall automatically be reducedas the Improvementsare completedby an amount equal to the amount of security required for such Improvement under the applicableAgreement as shown in Schedule 1. City hereby agrees that notwithstanding anything to the contrary set forth in the Agreements, Developer shall not be deemed in breach of the Agreements by virtue of withdrawing the Bonds. Withinthirty (30) days after the recordationof this Lien Contract, the City shall exonerate and release the Bonds and return the Bondsto the person or entity which postedsuchBonds. In the event Developer,its successors, heirs,assigns or transfereesfail to (i) if install and construct the Improvements in the time and manner requiredunderthe applicable Agreement followingthe expirationof any and all applicablenoticeand cure periods;or (ii) pay the Security Fee as requiredunder Section5 below (in either case, an "Event ofDefault"), City may exercise its rights or remediesunderthis LienContract if Developerfails to cure anysuch Event of Defaultwithin thirty (30) days of City’s written notice to Developer specifyingin reasonabledetailthe (nature of such default. If such default is of such a characteras to require more than thirty(30) days to cure,saidthirty (30) day periodstall be extendedto includesuch I additionaltime as is reasonablynecessary to cure suchdefault. Uponthe occurrenceof an Event I of Default and Developer'ssubsequentfailure to cure such default within the time period set forth in this Sectiong2,*Devélopei_' agreesthat the City may install and construct, or cause the C’ installationand construction of,’the Improvements which are the subject of such Event of if Default? City orits contractor mayenter upon the Property as reasonably necessary to construct such Improvements. Developer or its successors, heirs, assigns or transfereesshallreimburse City for the costof suchlrnprovernentsupon their completion. In the event such costsare not paidto City withinininety(90) daysfrom completion,City may foreclosethis lien as providedby law for the foreclosure of mortgages.
j ,3. Release’‘Subordination. This Lien Contract may be releasedin whole or in part and maybe subordinated to‘ other liens’ or encumbrancesif the City determinesthat the obligation to construct theclmprovementsis sufficiently securedby a lien on other property or I that the releasefor subordinationof the lien will not jeopardize the completion of the Irnprovernents,andanygsuchsubordinationmust first be approvedin writing by theCity in its reasonablediscretion. Without limiting the foregoing, Developer may obtain and City shall grant the partialrelease(the "PartialRelease") of any portion of the Property comprisingof one or more subdivided‘lots- within the Property or phases or tracts within the Property (the “ReleasedLots/Phases”)from this Lien Contract, if at the time of the request for the Partial Release: (a) Developer providesnewperformance and labor and materials bonds reasonably acceptableto the City or pursuantto the terms and conditionsof the applicableAgreementwith respect to suchReleasedLots/Phases; or (b) Developerhas substantially completedthe required Improvements onethe Released Lots/Phases; or (c) Developer demonstrates (by delivery of an appraisalor other method reasonable acceptable to the City) that the Lien-tosVa1ueRatio (de?ned below) with respect to theRemaining Property (de?ned below) is not greater thanfifty percent (50%). The “Lien-to-ValueRatio" shall mean the ratio of (i)the amount of securityfor the constructionof the Improvements required under the then remaining Agreements with respect to the Property, to (ii)the fair market value of the Remaining Property. “Remaining Property” shall mean that portionof the Property remaining subjectto this Lien Contractupon or after the release of Released Lots/Phasesfrom this Lien Contract. Developeragreesthat prior to the issuanceof any permitstocommence constructionofimprovementson or with respect to any ReleasedLots/Phaseswithinthe Property, the Developershall deliverto City in accordancewith 347/020269-0040 2 103691607a03/23/l0 " '

Page 162 of 296 ends

the City’s “General Guidelines on Use of FinancialAssurances And Security ProvidedBy MunicipalCode,CaliforniaGovernment Code and the SubdivisionMap Act,” a performance bond, cash or an acceptableletter of credit equal to the cost of the improvements to be constructedthereon, and suchReleasedLots/Phaseswill be released from the Lien Contract as providedabove and the amount of the Lien shall be reducedcommensurately. During the term of this Lien Contract, Developer agrees to providethe maintenance necessary to keep the existing PM-10permitand the SWPPP and its applicablepermitsin complianceon the Property.

4. Termination. This Lien Contractshallterminate upon the earlierto occur of the following: (i) release of the Propertyfrom this Lien Contract by the City, (ii) Developer's substantialcompletionof the Irnprovements, or (iii) substitutionof other security as authorized by the SubdivisionMapAct.
e 5;‘ ?eggrity Fee, In considerationof the mutualagreements in this Lien Contract, Developershallpay to City a fee equal to one percent (1%) per calendaryear of the amount of security for the constructionof the Improvements as requiredunder the Agreements whichare secured by this Lien Contract from time to time (“Security Fee”). Developer shall pay the H
' SecurityPeeto‘Cityin quarterly-payments within30 days followingthe end of each calendar P
C quarter. Payments for anypartial calendar quarter shallbe prorated. The SecurityFeeand the t akcorrcspondingquarterlypayments ‘shall be adjusted following the completionof any of the 4 3 improvements (or the reductionof the estimatedcost to complete any of the Improvements),or the occurrence (if each PartialReleasepursuant to Section3 above. If any installmentof the Security Fee is not paidwithin10days alter Developer’sreceipt of writtennotice from Citythat e the installment is delinquent,the City may impose a late charge in the amount of 10% of the amount unpaid. This fee is used to also cover any costs the City may incur with regard to implementingthis LienContract.

6. a Transfer of the Property. ThisLienContract and the covenants containedherein '
shallbe binding uponand inureitothe benefit of the successors,heirs, assigns and transfereesof Developer, shall run with the Property, and create an equitable servitude upon the Property. e Notwithstandingtheforegoing, Developer shall have the right to convey any portion of the Property covered by this Lien Contract, and the purchasershall be bound by the terms and provisionsof thisLienContract; provided,however, inthe event Developertransfersany part of the Property to an individualhomeowner, such individualhomeowner purchasershallnot be bourid by this Lien Contract and title to the lot purchasedby such homeowner shall not be subjectto thisLien Contract. Uponthe conveyanceany portion of the Property by Developer, Developershall be released from any obligations hereunderwith respect to that portion of the Property conveyed.

7. Recordation.Upon execution of this Lien Contract by_both City and Developer, City shallrecordthisLienContract with the Clerkof RiversideCounty.

8. GeneralProvisions.
' 8.1 EntireAgreement ThisLien Contract together with all exhibits and other agreements expresslyreferredto herein constitutesthe entire agreement betweenthe parties with 347/020269-0040
103691607a03/23/10 '3 "

Page 163 of 296 ends

respect to the subject matter containedherein. All prior _or contemporaneous agreements, understandings,representations,warrantiesand statements, oral or written,are superseded.

8.2 Governing Law. This Lien Contract shall be governed, interpreted, construedand enforcedin accordancewiththe laws of the Stateof California.

8.3 Headings. The captions and headings used in this LienContract are for convenienceonlyand are not a part of this Lien Contractand are not intendedto de?ne, limitor affectthe constructionor interpretationof any term or provisionhereof.

8.4 Modi?cation"Wa_i_vg.No modi?cation,waiver, amendment,discharge or changeof this_Lien Contractshallbe valid unlessit is in writing and signed by the party against i whichthe enforcement of such modification,waiver, amendment,dischargeor change is or may be sought.
a _ 8.5 * Severability; If any term, provision, covenant or conditionof this Lien Contract’is held to be invalid, void or otherwiseunenforceable, to any extent, by any court of competent jurisdiction, the remainderof this Lien Contract shall not be affectedthereby, and each tern1,iprovision;”co'Vei1ant’orconditionof this Lien Contract shallbe valid and enforceable to the fullest extent permittedby law.

8.6 ~ Countemarts. —This Lien Contract may be eirecuted in counterparts, each 7 of which,whentaken together, will constitutea fully executed original.

8.7 Exhibits andSchedules. All exhibits and schedules attached heretoare incorporatedhereinby reference.

IN WITNESSWHEREOF,this Lien Contract has been made and executed as of the date first above written. -
SKYBORNE VENTURBSLLC, a Delaware
limited liability company
By: StrategicLandPartnersLP, as Member
By: JK—Riverwc0ds,LLC as GeneralPartner a
" ?/?g

CITYOF DESERT HOT SPRINGS
By: -..__. ......___. Name: mes M,Kozak _____ Title’ Member 347/020269-0040 -4-. l0369l6.072103/23/10

Page 164 of 296 ends

.. .‘
; S: _ E
_.

STATE OF CALIFORNIA )
_ , )
COUNTYOFRNevade, )
On\\/ion \'33.Z0_\O.before‘me,\-<\/.\S‘Fl€’.. Rccmo? , Notary Public, personally appeared A ,I(16L(/j_{\,.D(/H/ll_\€'l% M who proved to me on the basis of satisfactory evidence to be the personée) whose narneé??yare subscribed to the within instrument and acknowledged to me that C??she/they executed the same in@/her/their authorizedcapacityé-ies) and that by?his/her/theirsignatureés? on the instrument the personés), or the entity uponbehalfof which the personfs-)acted, executedthe instrument. _
I certify under—PENALTYOF PERJURY under the laws of the State of Californiathatthe foregoingparagraphis true and correct _ .1 KRISTIERAMOS<‘ 4'! 1
" COMM.#1765869 U] NOTARYPualtc-GALIFORNIA
. RIVERSIDE comm : MyCountExp.SE91‘. 7,2011
WIpTNI3SSimy handand officialseal.

Signature W [SEAL] s

STATE OF CALIFORNIA )
)
COUNTY or «SMvtggo )
011 gig“!V‘) W
e a ,before me, \<W0N _, Notary Public, personally
appeared ~ _— whoproved to me onthe basis "of
" satisfactory :ev’i’dei1;c’eeto"be"the ~ persor.1és9 whose namefs?is/~aae~‘ subscribed to" the within — instrument’and ~acknow1edgedto me that h€ executed the same in his%i1e17‘their authorizedcapaeity{-iee)and that by m signature/(,8) on the instrumentthe persongef), or _
the entity uponbehalfof whichthe personggf acted, executedthe instrument.

I certifyiunder PENALTY OF PERJURY under the laws of the State of Californiathat the foregoing paragraphis true and correct
WITNESSmy hand and officialseal.
., Gommtssian av1624273
NotaryPublic- Gaufamla
. LosAngelaacounty xir Nov25.2012
[SEAL]
347/020269-0040 5 103691607e03/23/10

Page 165 of 296 ends

EXHIBIT“A”
'

PROPERTY
PARCEL3: (APN'S:667-300-001THROUGH054,058,‘667-310-001THROUGH084 AND088; 667-320-001THROUGH026,029 THROUGH078, 080THROUGH083 AND667-330-001 THROUGH013, 015THROUGH072.AND076)
LOTS1THROUGH286ANDLETTEREDLOTS"0"THROUGH"2"AND"AA"OFTRACTNO.32030- 3 ASSHOWNON BYMAPON FILEIN BOOK419 PAGES29 THROUGH39 OF MAPS,RECORDSOF RIVERSIDECOUNTY,CALIFORNIA.

I PARCEL4: (APN‘S:667-340-001THROUGH048AND051,‘667-350-001 THROUGH074ANDW078 THROUGH080; AND667-360-001THROUGH060AND064)
LOTS1 THROUGH182ANDLEITEREDLOTS"H"THROUGH"5" OFTRACTNO.32030-10,AS SHOWNBYMAPONFILEIN BOOK419 PAGES40 THROUGH47 OFMAPS,RECORDSOF RIVERSIDE COUNTY,CALIFORNIA.

PARCEL5: (APN‘S:667-080-006,667-100-029,031AND038)
TENTATIVE(TRACT) MAP32030-4,BEINGASUBDIVISIONFTHEFOLLOWINGDESCRIBED PROPERTY: -
PARCELNO. 1:
’
7 . THESOUTH‘/2OFTHENORTHWEST‘AOFSECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST, ”SANBERNARDINOBASEANDMERIDIAN, STATEOFCALIFORNIA, ACCORDINGTO THE OFFICIAL GOVERNMENTPLATTHEREOF.
_ A.ANYANDALL(I) OILRIGHTS,(II) MINERALRIGHTS,(III) NATURALGASRIGHTS,(IV) ' RIGHTSTO ALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(V)_GEOTHERMAL

EXHIBITA
347/020269-0040
1036916072103/23/10

Page 166 of 296 ends

STOREANDREMOVEANYOFTHESUBSURFACERESOURCESONORFROMTHEPROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTO WHIPSTOCKOR DIRECIIONALLYDRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,

THROUGHORACROSSTHESUBSURFACEOFTHEPROPERTY, ANDTO BOTTOMSUCH WHIPSTOCKEDOR DIRECTIONALLYDRILLEDWELLS,TUNNEL5ANDSHAI-TSWITHINOR

BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL,RETUNNEL, EQUIP,

I MAINTAIN, REPAIR,DEEPENANDOPERATEANYSUCHWELLSORMINES,BUTWITHOUTHE

RIGHTTO DRILL,MINE,EXPLORE,OPERATE,PRODUCE,STORE,ORREMOVEANYOFTHE

SUBSURFACERESOURCESTHROUGHORIN THESURFACEOFTHEPROPERTYORTHEUPPER FIVEHUNDRED(500) FEETOFTHESUBSURFACEOFTHEPROPERTY.)
PARCELNO. 2:

THESOUTHWEST 1/4,OFSECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST,sANBERNARDINO I

BASEANDMERIDIAN, STATEOFCALIFORNIA,CCORDINGTOTHEOFFICIALGOVERNMENT PLATHEREOF.

EXCEPTINGTHERE!‘-‘ROMTHEEAST1/2OFTHESOUTHWEST‘/4.
"ALSOEXCEP1‘INGI‘THEREFROM THEEAST1/:OFTHENORTHEAST1%:or THENORTHWEST 1/4 OFTHESOUTHWEST‘/4OF SAIDSECTION.

ALSOEXCEPTING THEREFROMTHESOUTHERLY40 FEETCONVEYEDTO THECOUNTYOF ARIVERSIDEBYDEEDFILEDFORRECORDJULY26, 1949AS INSTRUMENTNO.3081 OF — ' OFFICIALRECORDSOF RIVERSIDECOUNTY,CALIFORNIA.

I I EXCEPTINGTHEREFROMANYPORTIONLYINGWITHINTRACT32030-1ASSHOWNONFILEIN BOOK404 PAGES757THROUGH75OF MAPS,RECORDSOFRIVERSIDECOUNTY,CALIFORNIA.

ALSOEXCEPTINGTHEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC.,A COLORADOCORPORATIONBYDOCUMENTRECORDED OCTOBER13, 2006,AS INSTRUMENT NO.200643756951OFOFFICIALRECORDSOFSAIDCOUNTY.SAIDINTERESTIS FURTHER DESCRIBEDASFOLLOWS:

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

RIGHTSTO ALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(V)GEOTHERMAL

UNDERTHATCERTAINREALPROPERTYSITUATEDIN THECOUNTYOF RIVERSIDE,STATEOF CALIFORNIADESCRIBEDINEXHIBIT"A"ATTACHEDHERHO ANDINCORPORATEDHEREIN (THE “PROPERTY"),TO THEEXTENTSUCHSUBSURFACERESOURCESHAVENOTBEEN PREVIOUSLYRESERVED;AND
347/020269-0040
1036916072103/23/10 '‘2'‘_

Page 167 of 296 ends

B.THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,

STOREANDREMOVEANYOFTHESUBSURFACERESOURCESONORFROMTHEPROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTO WHIPSTOCKOR DIRECIIONALLYDRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,

THROUGHORACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO BOTTOMSUCH WHIPSTOCKEDORDIRECTIONALLYDRILLEDWELLS,TUNNELSANDSHAFT5WITHINOR

BEYONDTHEEXTERIORLIMITSROF THEPROPERTY,ANDTO REDRILL,RETUNNEL, EQUIP,

MAINTAIN, REPAIR,DEEPENANDOPERATEANYSUCHWELLSORMINES,BUTWITHOUTHE

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

SUBSURFACERESOURCESTHROUGHORINTHESURFACEOFTHEPROPERTYORTHEUPPER FIVEHUNDRED(500) FEETOFTHESUBSURFACEOFTHEPROPERTY.)
PARCELNO.3:

THE ‘/2OFTHESOUTHWEST‘/4,ANDTHEEAST‘/2OFTHENORTHEASTI/4OF THE NORTHWEST‘/4OFTHESOUTHWEST‘/4:OFSECTION28, TOWNSHIP‘2SOUTH,RANGE4 EAST,

SANBERNARDINOBASEANDMERIDIAN, STATEOFCALIFORNIA, ACCORDING TOTH OFFICIALGOVERNMENTPLATTHEREOF. - EXCEPTING THEREFROMTHESOUTHERLY40 FEET"ASCONVEYED TOTHECOUNTYOF RIVERSIDE, BYDEEDRECORDEDJULY26, 1949 ASINSTRUMENTNO.3081 OFOFFICIAL RECORDSOFRIVERSIDECOUNTY,CALIFORNIA.

EXCEPTING THEREFROM ANYPORTIONLYINGWITHINTRACT320304 ASSHOWNON FILEIN BOOK404 PAGES67 THROUGH75 or MAPS,ruzconnsor RIVERSIDEcouxxmr, CALIFORNIA.

ALSOEXCEPTING THEREFROMANYPORTIONLYINGWITHINTRACT32030—3ASSHOWNON ’ FILEIN BOOK419 PAGES29THROUGH39 OF MAPS,RECORDSOFRIVERSIDECOUNTY, CALIFORNIA.

ALSOEXCEPTING THEREF-ROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC.,A COLORADOCORPORATIONBYDOCUMENTRECORDEDOCTOBER13,2006,ASINSTRUMENT NO.Z006-0756951OFOFFICIALRECORDSOFSAIDCOUNTY.SAIDINTERESTIS FURTHER DESCRIBEDASFOLLOWS:

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

RIGHTSTOALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(V)GEOTHERMAL HEATRIGHTSORGEOTHERMALSUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY,. (VI)WATERRIGHTSANDCLAIMSORRIGHTSTO WATERAND(VII)ALLPRODUCTSDERIVED FROMANYOFTHE,FOREGOING(COLLECTIVELY, "SUBSURFACERESOURCES")LOCATEDINOR

UNDERTHATCERTAINREALPROPERTYSITUATEDINTHECOUNTYOFRIVERSIDE,STATEOF CALIFORNIA DESCRIBEDINEXHIBIT"A"ATTACHEDHERETOANDINCORPORATEDHEREIN (THE"PROPERTY"),TOTHEEXTENTSUCHSUBSURFACERESOURCESHAVENOTBEEN PREVIOUSLYRESERVED;AND
B.THEPERPETUAL RIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE, STOREANDREMOVEANYOFTHESUBSURFACERESOURCESONORFROMTHEPROPERTY.

INCLUDINGWITHOUTLIMITATIONTHERIGHTTOWHIPSTOCKORDIRECTIONALLY DRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,

THROUGHORACROSSTHESUBSURPACEOFTHEPROPERTY,ANDTO BOTTOMSUCH WHIPSTOCKEDORDIRECTIONALLY DRILLEDWELLS,TUNNEL5ANDSHAFTSWITHINOR

BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL,RETUNNEL, EQUIP,

MAINTAIN, REPAIR,DEEPENANDOPERATEANYSUCHWELLSORMINES,BUTWITHOUTHE 347/020269~0040 ,., 1036916072103/23/I0

Page 168 of 296 ends

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

SUBSURFACERESOURCESTHROUGHORINTHESURFACEOFTHEPROPERTYORTHEUPPER FIVEHUNDRED(500) FEETOFTHE SUBSURFACEOFTHEPROPERTY.)
PARCEL6: (APN'S:667-100-029, 031 AND038; 667~120~OS1,052, 025THROUGH027)’ TENTATIVE(TRACT)MAP32030-5,BEINGASUBDIVISIONOFTHEFOLLOWINGDESCRIBED PROPERTY:

PARCELNO.1
THESOUTHWEST1/:OFSECTION28,TOWNSHIP2 SOUTH,RANGE4 EAST,SANBERNARDINO

BASEANDMERIDIAN, STATEOFCALIFORNIA,ACCORDINGTO THEOFFICIALGOVERNMENT PLATTHEREOF.

EXCEPTINGTHEREFROMTHEEAST‘/2OFTHESOUTHWEST‘/4.

ALSOEXCEPTINGTHEREFROMTHELEAST‘/2.OFTHENORTHEAST‘A OFTHENORTHWEST‘/4 OFTHESOUTHWEST‘/4OFSAIDSECTION.

I ALSOEXCEPYTINEG THEREFROMTHESOUTHERLY40 FEETCONVEYEDTO THECOUNTYOF RIVERSIDEBYDEEDFILEDFORRECORDJULY26, 1949 ASINSTRUMENT NO.3081OF. I 7 OFFICIALRECORDSOFRIVERSIDECOUNTY,CALIFORNIA.

ALSOEXCEPTINGTHEREFROM ANYPORTION‘LYING WITHINTRACT32030~1ASSHOWNON FILEIN BOOK404,PAGES67 THROUGH75, OF MAPS,RECORDSOFRIVERSIDECOUNTY, CALIFORNIA.

ALSOEXCEPTING THEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC.,A COLORADOCORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2006, ASINSTRUMENT NO.2006-0756951OFOFFICIALRECORDSOFSAIDCOUNTY.SAIDINTERESTIS FURTHER DESCRIBEDAS FOLLOWS: A
7 A.ANYANDALL(I) OILRIGHTS,(II) MINERALRIGHTS,(III) NATURAL GSRIGHTS,(IV) RIGHT5T0 ALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(V)GEOTHERMAL HEATRIGHTSORGEOTHERMAL SUBSTANCES THATMAYBEPRODUCEDFROMTHEPROPERTY,— (VI)WATERRIGHTSANDCLAIMSORRIGHTSTO WATERAND(VII)ALLPRODUCTSDERIVED 0 FROMANYOFTHEFOREGOING(COLLECITVELY, "SUBSURFACERESOURCES”)LOCATEDIN OR

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

INCLUDINGWITHOUTLIMITATIONTHERIGHTTOWHIPSTOCKORDIRECTIONALLYDRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,

THROUGHOR ACROSSTHESUBSURFACEOFTHE PROPERTY,ANDTO BOTTOMSUCH

WHIPSTOCKEDORDIRECTIONALLYDRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHEEXTERIORLIMITSOF THEPROPERTY,ANDTO REDRILL,RETUNNEL, EQUIP,

MAINTAIN,REPAIR,DEEPENANDOPERATEANYSUCHWELLSOR MINES,BUTWITHOUTHE

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

SUBSURFACERESOURCESTHROUGHOR INTHESURFACEOFTHEPROPERTYORTHEUPPER 347l020269-0040
1036916072103/23/10 "4"

Page 169 of 296 ends

FIVEHUNDRED(500) FEETOFTHESUBSURFACEOFTHEPROPERTY.)
PARCELNO.2:.

THEEAST‘/2OFTHESOUTHWEST‘/4,ANDTHEEAST‘/2OFTHENORTHEAST‘AOFTHE NORTHWEST‘/4OFTHESOUTHWEST‘/4OF SECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST,

SANBERNARDINOBASEANDMERIDIAN,STATEOFCALIFORNIA,CCORDINGTOTHE OFFICIALGOVERNMENTPLATTHEREOF.'
EXCEPTINGTHEREFROMTHESOUTHERLY40 FEETASCONVEYEDTOTHECOUNTYOF RIVERSIDE,BYDEEDRECORDEDJULY26, 1949ASINSTRUMENT NO.3081OFOFFICIAL RECORDSOFRIVERSIDECOUNTY,CALIFORNIA.

ALSOEXCEPTINGTHEREFROMANYPORTIONLYINGWITHINTRACT32030~1ASSHOWNON FILEIN BOOK404, PAGES67 THROUGH75, OF MAPS,RECORDSOFRIVERSIDECOUNTY, CALIFORNIA.

ALSOEXCEPTINGTHEREFROMANYPORTIONLYINGWITHINTRACT32030-3ASSHOWNON FILEIN BOOK419, PAGES29THROUGH39, OFMAPS,RECORDSOFRIVERSIDECOUNTY, 0 CALIFORNIA.

ACSO‘Ext;E}?IN1G’THEREFRoM ALLTHATINTERESTCONVEYEDT0 DRHENERGY, INc.,A ,COLORA_D,O_CQRRORATIONBYDOCUMENTRECORDEDocroaea13, 2005, ASINSTRUMENT NO.200640756951 OFOFFICIALRECORDSOFSAIDCOUNTY.SAIDINTERESTIS FURTHER DESCRIBEDASFOLLOWS:

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

RIGHTSTOALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(V)GEOTHERMAL

HEATRIGHTSORGEOTHERMAL SUBSTANCES THATMAYBEPRODUCEDFROMTHEPROPERTY, (VI)WATERRIGHTSANDCLAIMSOR RIGHTSTO WATERAND(VII)ALL.PRODUCTSDERIVED 0' FROMANYOFTHEFOREGOING(COLLECTIVELY, "SUBSURFACE RESOURCES")LOCATEDINIOR

UNDER THATCERTAINREALPROPERTYSITUATEDINTHECOUNTYOFRIVERSIDE,STATEOF CALIFORNIADESCRIBEDINEXHIBIT"A"ATTACHEDHERETOANDINCORPORATED HEREIN . * (THE"PROPERTY"), TOTHEEXTENTSUCHSUBSURFACERESOURCES HAVENOTBEEN PREVIOUSLYRESERVED;AND
B.THEPERPETUALRIGHTTODRILL,MINE,EXPLORE ANDOPERATEFORANDPRODUCE, STOREANDREMOVEANY[OFTHESUBSURFACERESOURCESONORFROMTHEPROPERTY, 7 INCLUDINGWITHOUTLIMITATIONTHERIGHTTOWHIPSTOCK ORDIRECTIONALLY DRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,

THROUGHORACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO BOTTOMSUCH

WHIPSTOCKEDORDIRECTIONALLY DRILLEDWELLS,TUNNELSANDSHAFFSWITHINOR BEYONDTHEEXTERIORLIMITS OFTHEPROPERTY,‘ANDTOREDRILL,RETUNNEL, EQUIP,

MAINTAIN,REPAIR,DEEPENANDOPERATEANYSUCHWELLSORMINES,BUTWITHOUTHE

A RIGHTODRILL,MINE,EXPLORE,OPERATE,PRODUCE, STOREOR REMOVEANYOFTHE SUBSURFACERESOURCESTHROUGHORINTHESURFACEOFTHEPROPERTYORTHEUPPER. FIVEHUNDRED(S00) FEETOFTHESUBSURFACEOFTHEPROPERTY.) PARCEL‘ 3:

THATPORTIONOFTHE EAST‘/2OF SECTION29, TOWNSHIP2 SOUTH,RANGE4 WEST,SAN

BERNARD-INOBASEANDMERIDIAN, STATEOFCALIFORNIA,ACCORDINGTOTHEOFFICIAL GOVERNMENTPLATTHEREOF.
347/0202690040
103691607a03/23/I0 "5"

Page 170 of 296 ends

COMMENCINGATTHESOUTHEASTCORNEROFSAIDSECTION29; THENCENORTHERLY ALONGTHEEASTERLYBOUNDARYOFSAIDSECTION29, A DISTANCEOF906 FEETTOTHE TRUEPOINTOF BEGINNING;THENCEWESTERLYANDPARALLELTHESOUTHERLYBOUNDARY OF SAIDSECTION29, ADISTANCEOF 528 FEETTHENCENORTHERLYANDPARALLELWITH THEEASTERLYBOUNDARYOFSAIDSECTION29, A DISTANCEOF 577 FEET;THENCE EASTERLYANDPARALLELWITHTHESOUTHERLYBOUNDARYOFSAIDSECTION29, A DISTANCEOF528 FEETTOTHEEASTERLYBOUNDARYOFSAIDSECTION29; THENCE SOUTHERLYALONGTHEEASTERLYBOUNDARYOF SAIDSECTION29, ADISTANCEOF 577 FEETTOTHETRUEPOINTOFBEGINNING.

ALSOEXCEPTING THERE?"-‘ROM ALLTHATINTERESTCONVEYEDTO DRHENERGY,INC.,A COLORADOCORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2006, ASINSTRUMENT NO. 2006-0756951OF OFFICIALRECORDSOFSAIDCOUNTY.SAIDINTERESTIS FURTHER DESCRIBEDAS FOLLOWS:

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

RIGHTSTOALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(V)GEOTHERMAL

HEATRIGHTSORGEOTHERMAL SUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY, ’ (VI)WATERRIGHTSANDCLAIMSORRIGHTSTO WATERAND(VII)ALLPRODUCTSDERIVED FROMANYOFTHEFOREGOING (COLLECIIVELY,"SUBSURFACERESOURCES")LOCATEDINOR UNDERTHAT_CERTAI_NREALPROPERTYSITUATEDINTHECOUNTYOFRIVERSIDE,STATEOF DESCRIBED INEXHIBIT"A"ATTACHEDHERETOANDINCORPORATEDHEREIN 9 (TH "PROPERTY"),TO THEEXTENTSUCHSUBSURFACERESOURCESHAVENOTBEEN PREVIOUSLYRESERVED;AND
I B.THEPERPETUAL RIGHTTODRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,

STOREANDVREMOVE ANYOFTHESUBSURFACERESOURCESONOR FROMTHEPROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTOWHIPSTOCKORDIRECTIONALLY DRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO, I THROUGHonACROSSTHESUB’.-SURFACE OFTHEPROPERTY,ANDTO BOTTOMSUCH

WHIPSTOCKEDWOR DIRECTIONALLY DRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR ‘ BEYOND EXTERIORLIMITSOFTHEPROPERTY, ANDTO REDRILL,RETUNNEL, EQUIP,

MAINTAINLREPAIR, DEEPENANDOPERATEANYSUCHWELLSORMINES,BUTWITHOUTTHE

RIGHTTODRILL,MINE,EXPLORE, OPERATE,PRODUCE,STOREORREMOVEANYOFTHE

A SUBSURFACERESOURCESTHROUGHORINTHESURFACEOFTHEPROPERTYORTHEUPPER FIVEHUNDRED(500) FEETOFTHESUBSURFACEOFTHEPROPERTY.)
PARCELNO.4:

THENORTH165 FEETOFTHEREALPROPERTYDESCRIBEDAS FOLLOWS:

THATPORTIONOFTHEEAST‘/2OFSECTION29,TOWNSHIP 2 SOUTH,RANGE4 EAST,SAN

BERNARDINOBASEANDMERIDIAN, STATEOFCALIFORNIA,CCORDINGTOTHEOFFICIAL GOVERNMENTPLATTHEREOF.

COMMENCINGATTHESOUTHEASTCORNEROFSAIDSECTION29;,THENCENORTHERLY ALONGTHEEASTERLYBOUNDARYOFSAIDSECTION,ADISTANCEOF 329.0 FEETTOTHE TRUEPOINTOFBEGINNING;THENCEWESTERLYANDPARALLELWITHTHESOUTHBOUNDARY OF SAIDSECTION,A DISTANCEOF528.0 FEET;THENCENORTHERLYANDPARALLELWITH THEEASTERLYBOUNDARYOFSAIDSECTION,A DISTANCEOF 577.0 FEET;THENCEEASTERLY ANDPARALLELWITHTHESOUTHBOUNDARYOF SAIDSECTIONADISTANCEOF 528.0 FEET;

THENCESOUTHERLYALONGTHEEASTERLYBOUNDARYOF SAIDSECTION,ADISTANCEOF 347/020269-0040
103691607aO3l23/10 -5-

Page 171 of 296 ends

577.0 FEETTOTHETRUEPOINTOF BEGINNING.

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

RIGHTSTO ALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(V)GEOTHERMAL

STOREANDREMOVE ANYOFTHESUBSURFACERESOURCES ONORFROMTHEPROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTOWHIPSTOCKORDIRECFIONALLYDRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO, I I fT'H‘ROTUGH OR,A§RQSSTHESUBSURFACEOFTHEPROPERTY, ANDTO BOTTOMSUCHA A 1WHIPSTOCKEDTOR DIRECTIONALLYDRILLED wsus, TUNNELSANDSHAFTSWITHINOR

BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL,RETUNNEL, EQUIP,

MAINTAIN,LREPAIR, DEEPENANDOPERATEANYSUCHWELLSOR MINES,BUTWITHOUTHE

RIGHTVTO DRILL,MINE,EXPLORE, OPERATE,PRODUCE,STOREORREMOVEANYOFTHE

SUBSURFACERESOURCESTHROUGHORINTHESURFACEOFTHEPROPERTYORTHEUPPER FIVEHUNDRED(S00) FEETOFTHESUBSURFACEOFTHEPROPERTY.)
PARCELNO. 5:
' THATPORTIONTOF THEEAST1/2OFSECTION29, TOWNSHIP2 SOUTH,RANGE4 EAST,sAN

BERNARDINOBASEANDMERIDIAN, STATEOFCALIFORNIA, ACCORDINGTOTHEOFFICIAL

GOVERNMENTPLATTHEREOF
COMMEN_CIN_G.AT THESOUTHEAST CORNEROFSAIDSECTION29; THENCENHORTHERLY _ ALONGTHEEASTERLYBOUNDARYOFSAIDSECTION29, A DISTANCEOF329.FEETTOTHE TRUEPOINTOFBEGINNING; THENCEWESTERLYANDPARALLELWITHSOUTHERLYBOUNDARY OFSAIDSECTION29, A DISTANCEOF528 FEET;THENCENORTHERLYANDPARALLEL WITH THEEASTERLYBOUNDARYOFSAIDSECTION29,ADISTANCEOF577 FEET;THENCE EASTERLYANDPARALLEL WITHTHESOUTHERLYBOUNDARYOFSAIDSECTION29,A DISTANCE OF528 FEET;THENCESOUTHERLYANDALONGTHEEASTERLYBOUNDARYOFSAID SECTION29, A DISTANCEOF577 FEETTOTHETRUEPOINTOF BEGINNING.

EXCEPTINGTHEREFROMTHENORTH165FEETTHEREOF.

ALSOEXCEPTING THEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC.,A COLORADOCORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2006, ASINSTRUMENT NO.2006—07S6951OFOFFICIALRECORDSOFSAIDCOUNTY.SAIDINTERESTIS FURTHER DESCRIBEDAS FOLLOWS:

A.ANYANDALL(I) OILRIGHTS,(II) MINERALRIGHTS,(111)NATURALGASRIGHTS,(IV) RIGHTSTo ALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(V)GEOTHERMAL 347/020269-0040
To3s916.o72103/23/10 -7-

Page 172 of 296 ends

UNDERTHATCERTAINREALPROPERTYSFIUATEDINTHECOUNTYOFRIVERSIDE, STATEOF CALIFORNIADESCRIBEDIN EXHIBIT"A"ATTACHEDHERETOANDINCORPORATEDHEREIN (THE"PROPERTY"), TOTHEEXTENTSUCHSUBSURFACERESOURCESHAVENOTBEEN PREVIOUSLYRESERVED;AND
B‘.THEPERPETUAL RIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,

STOREANDREMOVEANYOFTHESUBSURFACERESOURCES ONORFROMTHEPROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTOWHIPSTOCKORDIRECTIONALLY DRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,

THROUGHORACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO BOTTOMSUCH

WHIPSTOCKED ORDIRECTIONALLY DRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR ' BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY,ANDTOREDRILL, RETUNNEL, EQUIP,

MAINTAIN, REPAIR,DEEPENANDOPERATEANYSUCHWELLSORMINES,BUTWITHOUTTHE

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

SUBSURFACERESOURCESTHROUGHORINTHESURFACEOFTHEPROPERTYORTHEUPPER FIVEHUNDRED(S00) FEETOFTHESUBSURFACEOFTHEPROPERTY.)
PARCELNO.6:
, f]T’HATi§OR1IONL’QF THEEAST1/2OFSECTION29, TOWNSHIP2 SOUTH,RANGE4 EAST,SAN

BERNARDINOBASEANDMERIDIAN,STATEOFCALIFORNIA, ACCORDINGTOTHEOFFICIAL GOVERNMENTPLATTHEREOF.

COMMENCING ATTHETSOUTHEAST CORNEROF SAIDSECTION29;THENCEWESTERLYALONG I THESOUTHERLY BOUNDARY OF SAIDSECTION29, A DISTANCEOF528 FEETTOTHETRUE POINTOFBEGINNING; THENCECONTINUINGWESTERLYALONGTHESAIDSOUTHERLY I BOUNDARY OFSAID,SECTION29, A DISTANCEOF528 FEET;THENCENORTHERLYAND PARALLEL WITHTHEEASTERLYBOUNDARYOF SAIDSECTION29, A DISTANCEOF2640 FEET; I THENCEEASTERLYANDPARALLEL WITHTHESOUTHERLYBOUNDARYOF SAIDSECTION29, A DISTANCE OF 528 FEET,‘THENCESOUTHERLYANDPARALLELWITHTHEEASTERLYBOUNDARY OFSAIDSECTION29, A DISTANCEOF2640FEETTOTHETRUEPOINTOFBEGINNING.

ALSOE5<CEPTING THEREFROM ALLTHATINTERESTCONVEYEDTO DRHENERGY,INc., A 7 COLORADOCORPORATIONavDOCUMENTRECORDED OCTOBERI3, 2006, As INSTRUMENT NO.2006-0756951OFOFFICIALRECORDSOFSAIDCOUNTY.SAIDINTERESTIS FURTHER DESCRIBEDASFOLLOWS:

A.ANYANDALL(I) OILRIGHTS,(II) MINERALRIGHTS,(III) NATURALGASRIGHTS,(IV) RIGHTSTOALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(v) GEOTHERMAL

HEATRIGHTSORGEOTHERMAL SUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY, (VI)WATERRIGHTSANDLOLAIMS OR RIGHTSTOWATERAND(VII)ALLPRODUCTSDERIVED ' ‘FROMANYOFOTHEFOREGOING(COLLECTIVELY, "SUBSURFACERESOURCES")LOCATEDINOR — UNDERTHATCERTAINREALPROPERTYSITUATEDINTHECOUNTYOFRIVERSIDE. STATEOF CALIFORNIADESCRIBEDINEXHIBIT "A"ATTACHEDHERETOANDINCORPORATED HEREIN (THE“PROPERTY"),TO THEEXTENTSUCHSUBSURFACERESOURCESHAVENOTBEEN PREVIOUSLYRESERVED;AND
B.THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,

STOREANDREMOVEANYOFTHESUBSURFACERESOURCESONOR FROMTHEPROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTO WHIPSTOCKOR DIRECTIONALLY DRILLAND 347/020259-0040
1036916972103/23/10 -8—

Page 173 of 296 ends

MINE, FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,

THROUGH ORACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO BOTTOMSUCH

WHIPSTOCKEDORDIRECTIONALLYDRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR 1 BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY,ANDTOREDRILL,RETUNNEL,EQUIP,

MAINTAIN,REPAIR,DEEPENANDOPERATEANYSUCHWELLSORMINES,BUTWITHOUTTHE

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

A SUBSURFACERESOURCESTHROUGHORINTHESURFACEOFTHEPROPERTYORTHEUPPER FIVEHUNDRED(500) FEETOFTHESUBSURFACEOFTHEPROPERTY.)
PARCEL7: (APN‘S:6674380-006;667-100~029,031 AND038; 667'-120~0S1,052AND024) TENTATIVE(TRACT)MAP32030-6,BEINGASUBDIVISIONOFTHEFOLLOWINGDESCRIBED PROPERTY:

PARCELNO.1:

THESOUTH‘/2OFTHENORTHWEST‘AOFSECTION28,TOWNSHIP2 SOUTH,RANGE4 EAST,

I SANBERNARDINOBASEANDMERIDIAN, STATEOF CALIFORNIA, ACCORDINGTOTHE OFFICIALGOVERNMENT PLATTHEREOF.

I ALSOLEXQEPTTNG THEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC.,A CDLDRADD CORPORATION BYDOCUMENTRECORDEDOCTOBER13,2006,ASINSTRUMENT I NO; 2006-’0756951'OF OFFICIALRECORDSOF SAIDCOUNTY.SAIDINTERESTIS FURTHER DESCRIBEDASFOLLOWS:

A.ANYANDALL(1) OILRIGHTS,(11)MINERALRIGHTS,(111)NATURALGASRIGHTS,(IV) RIGHTSTOALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(v) GEOTHERMAL

HEATRIGHTSORGEOTHERMAL SUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY, ,, (VI) WATERRIGHTSANDCLAIMSORRIGHTSTOWATERAND(VII)ALLPRODUCTSDERIVED FROMANYOFTHEFOREGOING (COLLECTIVELY, "SUBSURFACE RESOURCES")LOCATEDINOR ’ UNDERTHATCERTAINREALPROPERTYSITUATEDIN THECOUNTYOFRIVERSIDE,STATEOF CALIFORNIADESCRIBED IN EXHIBIT"A"ATTACHEDHERETOANDINCORPORATED-HERE-IN (THE"PROPERTY"),TOTHEEXTENTSUCHSUBSURFACE RESOURCES HAVENOTBEEN PREVIOUSLYRESERVED; AND
7,‘THE’PERPET,UA_L,RIGHT TODRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,, STOREANDREMOVEANYOFTHESUBSURFACERESOURCESONORFROMTHEPROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTOWHIPSTOCKORDIRECTIONALLY DRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO, 7,TTHROUGH DRACROSSTHESUBSURFACIE OFTHEPROPERTY,ANDTO BOTTOMSUCH

WHIPSTOCKED ORDIRECTIONALLYDRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHE EXTERIOR LIMITSOFTHEPROPERTY,ANDTOREDRILL, RETUNNEL,EQUIP,

MAINTAIN,IREPAIR, DEEPENANDOPERATEANYSUCHWELLSORMINES,BUTWITHOUTTHE

RIGHTTOIDRILL,,MINE,,EXPLORE, OPERATE,PRODUCE,STOREORREMOVEANYOFTHE ‘ SUBSURFACE RESOURCESTHROUGHORINTHESURFACEOFTHEPROPERTYORTHEUPPER FIVEHUNDRED(S00) FEETOFTHESUBSURFACEOFTHEPROPERTY.)
PARCELNO. 2:

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

BASEANDMERIDIAN,STATEOFCALIFORNIA, ACCORDINGTOTHEOFFICIALGOVERNMENT PLATTHEREOF.
'347/o2o2a9.uo4o
1o3a91e.o7a03/23/10 ~9-

Page 174 of 296 ends

EXCEPTINGTHEREFROMTHEEAST‘/2OFTHESOUTHWEST‘/4.

ALSOEXCEPTINGTHEREFROMITHE EAST‘/2OFTHENORTHEAST‘AOF THENORTHWEST‘/4 OFTHESOUTHWEST‘A OFSAIDSECTION.

ALSOEXCEPTINGTHEREFROMTHESOUTHERLY40 FEETCONVEYEDTO THECOUNTYOF RIVERSIDEBYDEEDFILEDFORRECORDJULY26, 1949ASINSTRUMENTNO.3081 OF OFFICIALRECORDSOFRIVERSIDECOUNTY,CALIFORNIA.

EXCEPTINGTHEREFROMANYPORTIONLYINGWITHINTRACT32030-1 ASSHOWNONFILEIN BOOK404 PAGES67 THROUGH75 OFMAPS,RECORDSOFRIVERSIDECOUNTY,CALIFORNIA.

A.ANYANDALL(1) OILRIGHTS,(II) MINERALRIGHTS,(111)NATURALGASRIGHTS,(IV) 7 RIGHTSTo ALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(V)GEOTHERMAL HEATRIGHTSORGEOTHERMAI. SUBSTANCESTHATMAYBE-PRODUCEDFROMTHEPROPERTY, _ ,(VI)__V_VATER ‘RIGHTS AND,CLAIMSORRIGHTSTOWATERAND(VII)ALLPRODUCTSDERIVED.

A —— FROMTANY OFTHEFOREGOING(COLLECTIVELY, "SUBSURFACERESOURCES")LOCATEDIN OR ",UN_D’,ER THATCERTAINREALPROPERTYSITUATEDIN THECOUNTYOFRIVERSIDE, STATEOF T CALIFORNIA DESCRIBEDIN EXHIBIT"A"ATTACHEDHERETOANDINCORPORATEDHEREIN I (THE"PROPERTY"), TO THEEXTENTSUCHSUBSURFACERESOURCES HAVENOTBEEN PREVIOUSLYRESERVED;AND

8. THEPERPETUAL RIGHTTODRILL,MINE,EXPLORE ANDOPERATEFORANDPRODUCE, — STOREANDREMOVEANYOFTHESUBSURFACERESOURCESONORFROMTHEPROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTO WHIPSTOCKORDIRECTIONALLY DRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS, TUNNELSANDSHAFTSINTO, ‘THROUGHORACROSSTHESUBSURFACEOFTHEPROPERTY, ANDTO BOTTOMSUCH " WHIPSTOCKEDORDIRECTIONALLY DRILLEDWELLS,TUNNELS ANDSHAFTSWITHINOR

BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY, ANDTO REDRILL,RETUNNEL, EQUIP,

MAINTAIN, REPAIR,DEEPENANDOPERATEANYSUCHWELLSORMINES,BUTWITHOUTHE

A RIGHTTODRILL,MINE,EXPLORE,OPERATE,PRODUCE,STOREORREMOVEANYOFTHE

SUBSURFACEJRESOURCES THROUGHORINTHESURFACEOFTHEPROPERTYORTHEUPPER FIVEHUNDRED(500) FEE!"OFTHESUBSURFACEOFTHEPROPERTY.)
PARCELNO.3:

THEEAST.‘/2OFTHELSOUTHWEST ‘A,ANDTHEEASTV2OFTHENORTHEAST‘/4OFTHE NORTHWEST‘AOFTHESOUTHWEST‘/4OFSECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST,

A SANBERNARDINOBASEANDMERIDIAN, STATEOFCALIFORNIA,CCORDINGTO THE OFFICIALGOVERNMENTPLATTHEREOF. A
EXCEPTINGTHEREFROMTHESOUTHERLY40 FEETASCONVEYEDTOTHECOUNTYOF RIVERSIDE,BYDEEDRECORDEDJULY25, 1949 AS INSTRUMENTNO. 3081 OF OFFICIAL RECORDSOFRIVERSIDECOUNTY,CALIFORNIA.

EXCEPTINGTHEREFROMANYPORTIONLYINGWITHINTRACT32030-1ASSHOWNONFILEIN BOOK404 PAGES67 THROUGH75 OF MAPS,RECORDSOF RIVERSIDECOUNTY,CALIFORNIA. 347/020269-0040 - 10369]6.07 5403/23/10 "'10"

Page 175 of 296 ends

ALSOEXCEPTINGTHEREFROMANYPORTIONLYINGWITHINTRACT32030-3AS SHOWNON FILEINBOOK419 PAGES29THROUGH39 OFMAPS,RECORDSOF RIVERSIDECOUNTY, CALIFORNIA.

ALSOEXCEPTINGTHEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC.,'A COLORADOCORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2005, ASINSTRUMENT NO. 2006-0756951OF OFFICIALRECORDSOFSAIDCOUNTY.SAIDINTERESTIS FURTHER DESCRIBEDAS FOLLOWS:

A.ANYANDALL(I) OILRIGHTS,(II) MINERALRIGHTS,(III) NATURALGASRIGHTS,(IV) RIGHTSTOAU.OTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(v) GEOTHERMAL

HEATRIGHTSORGEOTHERMALSUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY, (VI)WATERRIGHTSANDCLAIMSORRIGHTSTOWATERAND(VII)ALLPRODUCTS DERIVED FROMANYOETHEFOREGOING (COLLECTIVELY, "SUBSURFACERESOURCES")LOCATEDIN OR UNDERTHATCERTAINREALPROPERTYsITuATEDINTHECOUNTYOF RIVERSIDE, STATEOF CALIFORNIA DESCRIBEDIN EXHIBIT"A“ATTACHEDHERETOANDINCORPORATEDHEREIN (THE"PROPERTY"),TOTHEExTENTSUCHSUBSURFACERESOURCESHAVENOTBEEN PREVIOUSLYRESERVED;AND
B.THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,

STOREANDREMOVEANYOETHESUBSURFACERESOURCESONORFROMTHEPROPERTY, ” ‘INCLUDINGWITHOUTLIMITATIONTHERIGHTTOWHIPSTOCKORDIRECTIONALLYDRILLAND -MINE,I'FR'OTM LANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,

TVTHROUTGH ORACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO BOTTOMSUCH ' WHIPSTOCKED ORDIRECTIONALLY DRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL,RETUNNEL, EQUIP,

MAINTAIN, REPAIR,DEEPENANDOPERATEANYSUCHWELLSORMINES,BUTWITHOUTHE ’ RIGHTTODRILL,”MINE,EXPLORE, OPERATE,PRODUCE,STOREORREMOVEANYOFTHE

SUBSURFACERESOURCES THROUGHORINTHESURFACEOFTHEPROPERTYORTHEUPPER FIVEHUNDRED(500) FEE!‘OFTHESUBSURFACEOFTHEPROPERTY.)
PARCELNO.4:

THATPORTIONOFTHEEAST‘/2OFSECTION29,TOWNSHIP2 SOUTH,RANGE3 EAST,SAN

BERNARDINOBASEANDMERIDIAN, STATEOFCALIFORNIA, ACCORDINGTO THEOFFICIAL GOVERNMENTPLATTHEREOF.

COMMENCING ATTHESOUTHEASTCORNEROFSAIDSECTION29,‘THENCENORTHERLY ALONGTHEEASTERLYBOUNDARYOFSAIDSECTION29, ADISTANCEOF1483FEETTO THE TRUE,POINTOFBEGINNING; THENCEWESTERLYANDPARALLELWITHTHESOUTHERLY BOUNDARYOFSAIDSECTION29, A DISTANCEOF528 FEET;THENCENORTHERLYAND PARALLELWITHTHEEASTERLYBOUNDARYOFSAIDSECTION29, A DISTANCEOF577FEET‘; 17 THENCEEASTERLYLANDPARALLELWITHTHESOUTHERLY BOUNDARYOFSAIDSECTION29, A I DISTANCEOF538FEETTO THEEASTERLYBOUNDARYOFSAIDSECTION29; THENCE SOUTHERLYALONGTHEEASTERLYBOUNDARYOFSAIDSECTION29,A DISTANCEOF 577 FEETTO THETRUEPOINTOFBEGINNING. '
ALSOEXCEPTINGTTHEREFROM ALLTHATINTERESTCONVEYEDT0 DRHENERGY,INC.,A COLORADOCORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2006, ASINSTRUMENT NO.2006~0756951OF OFFICIALRECORDSOFSAIDCOUNTY.SAIDINTERESTIs FURTHER DESCRIBEDAS FOLLOWS:

A.ANYANDALL(I) OILRIGHTS,(II) MINERALRIGHTS,(III) NATURALGASRIGHTS,(IV) 347/020269-0040
l036916.07E03/23/I0 . -11-

Page 176 of 296 ends

RIGHTSTOALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(V)GEOTHERMAL

UNDERTHATCERTAINREALPROPERTYSITUATEDINTHECOUNTYOFRIVERSIDE,STATEOF CALIFORNIA DESCRIBEDINEXHIB1T”A"ATTACHEDHERETOANDINCORPORATEDHEREIN (THE"PROPERTY"),TOTHEEXTENTSUCHSUBSURFACERESOURCESHAVENOTBEEN PREVIOUSLYRESERVED; AND
B.THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,

STOREANDREMOVEANYOFTHESUBSURFACERESOURCESON ORFROMTHEPROPERTY, INCLUDINGWITHOUTLIMITATIONTHERIGHTTO WHIF-‘STOCKOR DIRECIIONALLYDRILLAND MINE: FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSAND SHAFTSINTO,

THROUGHORACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO BOTTOMSUCH

WHIPSTOCKED OR DIRECTIONALLYDRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL,RETUNNEL, EQUIP,

MAINTAIN,REPAIR,DEEPENANDOPERATEANYSUCHWELLSORMINES,BUTWITHOUTHE

RIGHTTO DRILL,MINE,EXPLORE, OPERATE,PRODUCE,STOREORREMOVE ANYOFTHE

SUBSURFACERESOURCESTHROUGHORINTHESURFACEOFTHEPROPERTYORTHEUPPER FIVEHUNDRED(500) FEETOFTHESUBSURFACEOFTHEPROPERTY.)
PARCELNO. 5:
(THATPORTION OFTHEASTt/2OFSECTION29, TOWNSHIP2 soum, RANGE4 EAST,SAN

IBERNARDINOBASEANDMERIDIAN, STATEOFCALIFORNIA, ACCORDINGTO THEOFFICIAL GOVERNMENTPLATTHEREOF.

A COMMENCINGATTHESOUTHEASTCORNERop SAIDSECTION29; THENCEwesremxALONG _THE SOUTHERLYBOUNDARYor SAIDSECTION29, A DISTANCEOF 523 FEETTO THETRUE POINTorBEGINNING; THENCE CONTINUINGWESTERLYALONGTHESAIDSOUTHERLY BOUNDARY or;sunSECTION29, ADISTANCEOF 523 FEET;THENCENORTHERLYAND ? PARALLEL wrmTHEEASTERLYBOUNDARYOFSAIDSECTION29, A DISTANCEOF2540 FEET; THENCEEAS'TEBLY_ANDPARALLEL wrmms SOUTHERLYBOUNDARYorsun SECTION29, A _’ DISTANCE528 FEET;THENCESOUTHERLYANDPARALLELWITHTHEEASTERLYBOUNDARY 9 OF SAIDSECTION’.?.9, A DISTANCEOF 2640 FEETTOTHETRUEPOINTOFBEGINNING.

I ALSOEIXCEPTINVGITHEREFROM ALLTHATINTERESTCONVEYEDTO DRHENERGY,INC., A COLORADO CORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2006, ASINSTRUMENT NO.20060756951OF OFFICIALRECORDSOFSAIDCOUNTY.SAIDINTERESTIS FURTHER DESCRIBEDASFOLLOWS:

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

I RIGHTSTO ALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(V)GEOTHERMAL

HEATRIGHTSORGEOTHERMALSUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY, (VI)WATERRIGHTSANDCLAIMSORRIGHTSTOWATERAND(VII)ALLPR0DUCI'SL,DERIVED_ FROMANYOFTHEFOREGOING(COLLECTIVELY, "SUBSURFACE RESOURCES")LOCATEDINOR I

T UNDERTHATCERTAINREALPROPERTYSIIUATEDINTHECOUNTYOF RIVERSIDE, STATEOF CALIFORNIADESCRIBEDIN EXHIBIT"A“ATTACHEDHERETOANDINCORPORATEDHEREIN (THE"PROPERTY"),TOTHEEXTENTSUCHSUBSURFACERESOURCESHAVENOTBEEN PREVIOUSLYRESERVED; AND
B.THEPERPETUAL RIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,

STOREANDREMOVEANYOFTHESUBSURFACERESOURCESONOR FROMTHEPROPERTY, 347/020269-0040
10369l6.073025/23/10 "12"

Page 177 of 296 ends

INCLUDINGWITHOUTLIMITATIONTHERIGHTTO WHIPSTOCKORDIRECIIONALLYDRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,

THROUGHOR ACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO BOTTOMSUCH

WHIPSTOCKEDORDIRECTIONALLYDRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL, RETUNNEL, EQUIP,

MAINTAIN,REPAIR,DEEPENANDOPERATEANYSUCHWELLSORMINES,BUTWITHOUT THE

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

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

PARCELNO.1
THATPORTIONOFTHENORTHWEST‘/4OFTHENORTHWEST‘.4:OFSECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST,SANBERNARDINOBASEANDMERIDIAN, STATEOFCALIFORNIA, ACCORDINGTOTHEOFFICIALGOVERNMENTPLATTHEREOF.

QBE§3I_N’N_ING ATOTHEOSOUTHEAST CORNEROFTHENORTHWEST1/4OFTHENORTHWEST1/4,OF ;SAID’SECTI_ON; *THENCEfWESTERLY, ONTHESOUTHLINEOFSAIDNORTHWEST1/4OFTHE ' NORTHWESTI/4980.5FEET,TOTHEEASTLINEOFTHATCERTAIN60 FOOTROADKNOWNAS 7 29 PALMSHIGHWAY;THENCENORTH23° 01' 13"EASTONTHENORTHLINEOF SAIDSECTION I I390.71 FEETTOTHENORTHEASTCORNEROFTHENORTHWEST‘/4OFTHENORTHWEST‘/4OF SAID,SECTION;THENCESOUTH0° 09' 30"EAST,ONTHEEASTLINEOFTHESAID NORTHWEST 7/4OFTHENORTHWEST1/:OF SAIDSECTION, 1380.18FEET,TO THEPOINTOF BEGINNING.

I EXCEPTING ITHEREFROM ONEHALFOFALLOIL,GASANDOTHERHYDROCARBONSUBSTANCES 7'UNDERLYINGSAIDLANDANDV2OFALLOTHERMINERALS, ASRESERVEDIN DEEDFROMI JOSEPHR.TROTTER,HUSBANDANDWIFEFILEDFORRECORDMARCH30, 1955ASBOOK1715 PAGE572OFOFFICIALRECORDSOFSAIDCOUNTY.

SAIDPROPERTY Is ALSOSHOWNAs PARCEL2, 3 AND4 ONRECORDOFSURVEYONFILEIN BOOK27 PAGE65 OFRECORDSOFSURVEY,RECORDSOF RIVERSIDECOUNTY,CALIFORNIA.

ALSOEXCEPTINGTHEREFROMALLTHATINTERESTCONVEYEDTODRHENERGY,INC.,A COLORADOCORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2005, ASINSTRUMENT NO.20060756951 OFOFFICIALRECORDSOFSAIDCOUNTY.SAIDINTERESTIS FURTHER DESCRIBEDASFOLLOWS:

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

I RIGHTSTOALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(V)GEOTHERMAL

I HEATRIGHTSORGEOTHERMALSUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY, (VI)WATERRIGHTSANDCLAIMSORRIGHTSTO WATERAND(VII) ALLPRODUCTSDERIVED FROMANYOF THEFOREGOING(COLLECHVELY,"SUBSURFACERESOURCES")LOCATEDINOR

UNDERTHATCERTAINREALPROPERTYSITUATEDINTHECOUNTYOFRIVERSIDE,STATEOF CALIFORNIADESCRIBEDIN EXHIBIT"A“ATTACHEDHERETOANDINCORPORATEDHEREIN (THE"PROPERTY"),TO THEEXTENTSUCHSUBSURFACERESOURCESHAVENOTBEEN PREVIOUSLYRESERVED;AND
347/020269»0040 103691607a03/23/I0 -13-

Page 178 of 296 ends

B.THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,

STOREANDREMOVEANYOFTHESUBSURFACERESOURCESONORFROMTHEPROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTOWHIPSTOCKORDIRECTIONALLY DRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,

THROUGHORACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO BOTTOMSUCH

WHIPSTOCKEDORDIRECTIONALLYDRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY, ANDTO REDRILL, RETUNNEL,EQUIP,

MAINTAIN, REPAIR,DEEPENANDOPERATEANYSUCHWELLSORMINES,BUTWITHOUTHE

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

SUBSURFACERESOURCESTHROUGHORINTHESURFACEOFTHEPROPERTYORTHEUPPER FIVEHUNDRED(S00) FEETOFTHESUBSURFACEOFTHEPROPERTY.) '
PARCELNo.2
THESOUTH1/2OFTHENORTHWESTIAOFSECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST, ‘SANBERNARDINOBASEANDMERIDIAN, STATEOFCALIFORNIA, ACCORDINGTO THE OFFICIALGOVERNMENTPLATTHEREOF.

UNDERTHATCERTAINREALPROPERTYSITUATEDINTHECOUNTYOFRIVERSIDE,STATEOF CALIFORNIA DESCRIBEDIN EXHIBIT"A"ATTACHEDHERETOANDINCORPORATEDHEREIN (THE"PROPERTY"), TOTHEEXTENTSUBSURFACERESOURCESHAVENOTBEEN PREVIOUSLYRESERVED;AND
B.‘THEPERPETUAL RIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE, * OREANDREMOVE ANYOFTHESUBSURFACERESOURCESONOR FROMTHEPROPERTY, , INCLUDINGWITHOUTLIMITATIONTHERIGHTTOWHIPSTOCKORDIRECTIONALLY DRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFFSINTO,

THROUGHORACROSSTHESUBSURFACE OFTHEPROPERTY,ANDTO BOTTOMSUCH * WHIPSTOCKEDOR DIRECTIONALLY DRILLEDWELLS,TUNNELSANDSHAFISWITHINOR BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY,AND_TOREDRILL,REIUNNEL,EQUIP,

MAINTAIN, REPAIR,DEETPENANDOPERATEANYSUCHWELLSOR MINES,BUTWITHOUTTHE

RIGHTTODRILL,MINE,EXPLORE, OPERATE,PRODUCE, STOREORREMOVEANYOFTHE A SUBSURFACERESOURCESTHROUGHORINTHESURFACEOFTHEPROPERTYORTHEUPPER FIVEHUNDRED(S00) FEETOFTHESUBSURFACE OFTHEPROPERTY.)
PARCEL9: (APN‘S:667~080-006AND007)
TENTATIVE(TRACT)MAP3203043,BEINGASUBDIVISIONOFTHEFOLLOWINGDESCRIBED PROPERTY: '
PARCELNO. 1
THENORTHEAST‘/4OFTHENORTHWEST‘/4ANDTHENORTH‘/2OF THENORTHEASTIA OF 347/020269-0040
1036916072103/23/10 "14’

Page 179 of 296 ends

SECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST,SANBERNARDINOBASEANDMERIDIAN, STATEOFCALIFORNIA, ACCORDINGTO THEOFFICIALGOVERNMENTPLATTHEREOF.

EXCEPTINGTHEREFROMANYPORTIONLYINGWITHINTRACT3203040 ASSHOWNONFILEIN BOOK419 PAGES40THROUGH47 OFMAPS,RECORDSOF RIVERSIDECOUNTY, CALIFORNIA.

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

RIGHTSTO ALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(V)GEOTHERMAL

HEATRIGHTSORGEOTHERMALSUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY, (VI)WATERRIGHTSANDCLAIMSORRIGHTSTOWATERAND(VII)ALLPRODUCTSDERIVED I FROMANYOFTTHEFOREGOING(COLLECTIVELY, "SUBSURFACERESOURCES")LOCATEDINOR

UNDERTHATCERTAINREALPROPERTYSIIUATEDINTHECOUNTYOFRIVERSIDE, STATEOF ’ CALIFORNIA DESCRIBEDINEXHIBIT“A"ATTACHEDHERETOANDINCORPORATEDHEREIN (THE"PROPERTY"),TOTHEEXTENTSUCHSUBSURFACERESOURCESHAVENOTBEEN PREVIOUSLYRESERVED; AND _ 7 E ,3.‘STREIPERPIETTALTIRIGHT TOmm,MINE,EXPLORE ANDOPERATEFORANDPRODUCE, , STOREDANDREMOVE ANYorTHEsussumceRESOURCESonGRFROMTHEPROPERTY,A

INCLUDINGWITHOUTLIMITATIONTHERIGHTTO WHIPSTOCKORDIRECTIONALLY DRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,

THROUGHORACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTOBOTTOMSUCH

WHIPSTOCKEDORDIRECTIONALLYDRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL,RETUNNEL, EQUIP,

MAINTAIN, REPAIR,DEEPENANDOPERATEANYSUCHWELLSORMINES,BUTWITHOUTHE D
I "RIGHTTODRILL,MINE,EXPLORE,OPERATE,PRODUCE,STOREORREMOVEANYOFTHE

SUBSURFACE RESOURCES THROUGHORINTHESURFACEOFTHEPROPERTY ORTHEUPPER I FIVEHUNDRED(500) FEE!‘OPTHESUBSURFACE OFTHEPROPERTY.) PARCELNO.2: '
I HESOUTH“/Ii OFTHENORTHWEST FAOFSECTION28,TOWNSHIP 2 SOUTH,RANGE4 EAST,

SANBERNARDINO BASEANDMERIDIAN, STATEOFCALIFORNIA, ACCORDINGTO THE OFFICIALGOVERNMENTPLATTHEREOF.

ALSO_EX_CEPTING THEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC.,A COLORADOCORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2006,AS INSTRUMENT NO.2006-0756951OFOFFICIALRECORDSOFSAIDCOUNTY.SAIDINTEREST IS FURTHER DESCRIBEDASFOLLOWS:

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

RIGHTSOTO ALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(V)GEOTHERMAL

HEATRIGHTSORGEOTHERMAL SUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY, (VI) WATERRIGHTSANDCLAIMSORRIGHTST0 WATERAND(VII)ALLPRODUCTSDERIVED FROMANYOF THEFOREGOING(COLLECTIVELY, "SUBSURFACERESOURCES")LOCATEDIN OR

UNDERTHATCERTAINREALPROPERTYSITUATEDINTHECOUNTYOFRIVERSIDE, STATEOF CALIFORNIADESCRIBEDINEXHIBIT"A"ATTACHEDHERETOANDINCORPORATEDHEREIN (THE "PROPERTY“),TOTHEEXTENTSUCHSUBSURFACERESOURCESHAVENOTBEEN PREVIOUSLYRESERVED;AND
347/020259-0040
10369I6.07a03/23/10 -15-

Page 180 of 296 ends

B.THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,

STOREANDREMOVEANYOFTHESUBSURFACERESOURCESONORFROMTHEPROPERTY, INCLUDINGWITHOUTLIMITATIONTHERIGHTTOWHIPSTOCKORDIRECTIONALLYDRILLAND _ MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,

THROUGHORACROSSTHESUBSURFACE OFTHEPROPERTY,ANDTO BOTTOMSUCH

WHIPSTOCKED ORDIRECTIONALLYDRILLEDWELLS,TUNNELSANDSHAFFSWITHINOR

BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL,RETUNNEL, EQUIP,

MAINTAIN, REPAIR,DEEPENANDOPERATEANYSUCHWELLSORMINES,BUTWITHOUTTHE

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

SUBSURFACERESOURCESTHROUGHORINTHESURFACEOFTHEPROPERTYORTHEUPPER FIVEHUNDRED(500) FEETOFTHESUBSURFACEOFTHEPROPERTY.)
PARCEL10: (APN'S:667~080~O02THROUGH004,006 AND007)
I TENTATIVE(TRACT)MAP32030-9,BEINGASUBDIVISION OFTHEFOLLOWINGDESCRIBED PROPERTY:

PARCELN0. 1
THATPORTIONOFTHENORTHWEST‘/4OFTHENORTHWEST‘/4OFSECTION28, TOWNSHIPZ A SOUTH,RANGE4 EAST,SANBERNARDINOBASEANDMERIDIAN, STATEOFCALIFORNIA, T ACCORDINGTOTHEOFFICIALGOVERNMENTPLATTHEREOF.

BEGINNING ATTHESQUTHEAST CORNEROFTHENORTHWEST‘/4OFms Nomawesr 1/4,OF I
SAIDSECTION;THENCEWESTERLY,ONTHESOUTHLINEOF SAIDNORTHWEST‘AOFTHE NORTHWEST‘/4980.55FEET,TO EASTLINEOFTHATCERTAIN60 FOOTROADKNOWNAS 29 PALMSHIGHWAY;THENCENORTH23° 01.‘13" EASTONTHENORTHLINEOFSAIDSECTION 390.71 FEEI"TOTHENORTHEASTCORNEROFTHENORTHWEST‘AOFTHENORTHWEST‘/4OF I SAIDSECTION,‘THENCESOUTH0° 09' 30" EAST,ONTHEEASTLINEOFTHESAID NORTHWEST1/: OFTHENORTHWEST‘/4OFSAIDSECTION,1380.18 FEET,TO THEPOINTOF BEGINNING. ,

I V I EXCEPTING THEREFROM ONEHALFOFALLOIL,GASANDOTHERHYDROCARBONSUBSTANCES UNDERLYINGSAIDLANDAND‘/2OFALLOTHERMINERALS, ASRESERVEDIN DEEDFROM JOSEPHR.TROTTER,HUSBANDANDWIFEFILEDFORRECORDMARCH30, 1955ASBOOK1715 — PAGE572 OFOFFICIALRECORDSOF SAIDCOUNTY. , ALSOEXCEPTINGTHEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC.,A COLORADOCORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2006, AS INSTRUMENT NO.2006-0756951OF OFFICIALRECORDSOF SAIDCOUNTY.SAIDINTERESTIS FURTHER DESCRIBEDASFOLLOWS:

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

RIGHTSTOALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(V)GEOTHERMAL

Page 181 of 296 ends

B.THEPERPETUALRIGHTTODRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,

STOREANDREMOVEANYOFTHESUBSURFACE RESOURCESONORFROMTHEPROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTO WHIPSTOCKOR DIRECTIONALLY DRILLAND MINE,FROMLANDSOTHERTHANTHEPROPERTY, WELLS,TUNNELSANDSHAI-W5INTO,

THROUGHORACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO BOTTOMSUCH WHIPSTOCKEDOR DIRECTIONALLYDRILLEDWELLS,TUNNEI5ANDSHAFFSWITHINOR

BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL,RETUNNEL, EQUIP,

MAINTAIN,REPAIR,DEEPENANDOPERATEANYSUCHWELLSOR MINES,BUTWITHOUTTHE

RIGHTTODRILL,MINE,EXPLORE,OPERATE,PRODUCE,STOREORREMOVEANYOFTHE

SUBSURFACERESOURCESTHROUGHORINTHESURFACEOFTHEPROPERTYORTHEUPPER FIVEHUNDRED(500) FEETOFTHESUBSURFACEOFTHEPROPERTY.)
SAIDPROPERTYIS ALSOSHOWNASPARCEL2, 3 AND4 ONRECORDOFSURVEYONFILEIN BOOK27 PAGE65 OFRECORDSOFSURVEY, RECORDSOFRIVERSIDECOUNTY,CALIFORNIA.

PARCELNO.2
THENORTHEAST, ‘/4OFTHENORTHWEST-’/4ANDTHENORTH‘/2OFTHENORTHEAST‘/4OF SECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST,SANBERNARDINOBASEANDMERIDIAN, $TATE OFCALIFORNIA,ACCORDINGTOTHEOFFICIALGOVERNMENTPLATTHEREOF.

EXCEPTING THEREPROMIANY PORTIONLYINGWITHINTRACT32030~l0ASISHOWNONFILEIN A BOOK419 PAGESIIUITHROUGH47 OF MAPS,RECORDSOF RIVERSIDECOUNTY,CALIFORNIA.

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

I ‘
W A.ANYANDALL(I) OILRIGHTS,(II) MINERALRIGHTS,(III) NATURALGASRIGHTS,(IV) RIGHTSTO ALLOTHERZHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(v) GEOTHERMAL

HEATRIGHTSORGEOTHERMAL SUBSTANCES THATMAYBEPRODUCEDFROMTHEPROPERTY, _(VI)WATERRIGHTS,ANDCLAIMSOR RIGHTST0 WATERAND(VII)ALLPRODUCTSDERIVED I FROMANYOF THEFOREGOING(COLLECTIVELY, "SUBSURFACERESOURCES")LOCATEDINOR UNDER‘THATCERTAINREALPROPERTYSITUATEDINTHECOUNTYOFRIVERSIDE,STATEOF CALIFORNIADESCRIBEDINEXHIBIT"A"ATTACHEDHERETOANDINCORPORATEDHEREIN (THE"PROPERTY"),TOTHEEXTENTSUCHSUBSURFACERESOURCESHAVENOTBEEN PREVIOUSLYRESERVED;AND
B.THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,

STOREANDREMOVEANYOFTHESUBSURFACERESOURCESONORFROMTHEPROPERTY,

LJIINCLUDING WITHOUTLIMITATIONTHERIGHTTO WHIPSTOCKORDIRECTIONALLY DRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAIWSINTO, THROUGH ORACROSSTHESUBSURFACE OFTHEPROPERTY,ANDTO[BOTTOMSUCH

WHIPSTOCKED ORDIRECTIONALLYDRILLEDWELLS,TUNNELSANDSHAFISWITHINOR

BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL,RETUNNEL, EQUIP,

MAINTAIN, REPAIR,DEEPENANDOPERATEANYSUCHWELLSORMINES,BUTWITHOUTHE

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

SUBSURFACERESOURCESTHROUGHORINTHESURFACEOFTHEPROPERTYORTHEUPPER FIVEHUNDRED(500) FEETOFTHESUBSURFACEOFTHEPROPERTY.)
PARCELNO. 3
347/020269-0040
103691607aos/23/Io -17-

Page 182 of 296 ends

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

SANBERNARDINOBASEANDMERIDIAN,STATEOFCALIFORNIA, ACCORDINGTOTHE OFFICIALGOVERNMENT PLATTHEREOF.

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

I RIGHTSTOALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(V) GEOTHERMAL

HEATRIGHTSORGEOTHERMALSUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY, (VI)WATERRIGHTSANDCLAIMSORRIGHTSTOWATERAND(VII)ALLPRODUCTSDERIVED ! FROMANYOFTHEFOREGOING (COLLECTIVELY, "SUBSURFACE RESOURCES")LOCATEDINOR I

I UNDERTHATCERTAINREALPROPERTYSITUATEDINTHECOUNTYOFRIVERSIDE,STATEOF CALIFORNIADESCRIBEDIN‘EXHIBIT"A"ATTACHEDHERETOANDINCORPORATED HEREIN ‘ (THE"PROPERTY"),TOTHEEXTENTSUCHSUBSURFACE RESOURCESHAVENOTBEEN PREVIOUSLYRESERVED; AND
B.THE‘PERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE, STOREANDREMOVE_ANY_,OF THESUBSURFACE RESOURCES ONORFROMTHEPROPERTY, MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS. TUNNELS ANDSHAFFSINTO,

THROUGHORACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO BOTTOMSUCH

WHIPSTOCKEDORDIRECTIONALLY DRILLEDWELLS,TUNNELSANDSHAFFSWITHINOR

BEYONDTHEEXTERIORLIMITSOFTHE PROPERTY,ANDTO REDRILL,REFUNNEL,EQUIP,

MAINTAIN,REPAIR,,DEEPENADOPERATEANYSUCHWELLSORMINES,BUTWITHOUTTHE

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

SUBSURFACE RESOURCES THROUGHOR INTHESURFACEOFTHEPROPERTYORTHEUPPER FIVEHUNDRED(500) FEETOFTHESUBSURFACEOFTHEPROPERTY.
347/02025943040
103691607aos/2:-mo -18—
IfI INCLUDINGWITHOUTLIMITATIONTHERIGHTOWHIPSTOCKORDIRECTIONALLY DRILLAND

Page 183 of 296 ends

SCHEDULE1

AGREEMENTS/LIENAMOUNTS

AGREEMENTS LIEN AMOUNT
MonumentAgreement for TractNo. 32030 (Villages3 & 10)
datedMarch22, 2006 by and between DR HortonInc. and
City ofDesert Hot Springs.
$20,000.00
GradingAgreement for Tract No. 32030 (Villages 8) dated ,2006 by and betweenDR Horton Inc. and City
of Desert Hot Springs.
$57,000.00
2 GradingAgreement forTract No. 32030 (Villages 9) dated , 2006 by and betweenDR Horton Inc. andCity
1 of DesertHot Springs. .
$12,000.00 ,
Street ~ StormDrainAgreement forTractNo. 32030
(Villages 1, 2, 3, 4, 5, 6, 7, 8, 9, 10 —— SpineRoads) dated March22, 2006 by and betweenDR Horton Inc. and City of
DesertHotSprings.
$1,823,000.00
Street - Storm DrainAgreement for Tract No. 32030
(Villages 1,2, 3, 4, 5, 6, 7, 8, 9, 10 — Public Roads) dated March22,.2006by and betweenDR Horton Inc. andCity of
H Desertjjlot Springs.
$1,540,000.00
Water and SewerImprovementsAgreement andBond for
Tract No. 32030 (Villages3 & 10)dated March22, 2006 by
and betweenDR Horton Inc. and City of Desert Hot Springs. $2,860,946.00
0 Street — StormDrain‘Agreement for Tract No. 32030
(Villages 3 & 10)datedMarch22, 2006 by andbetweenDR
Horton Inc. andCity of Desert Hot Springs.

Grading Agreement for TractNo. 32030 (Village 5) dated
July 12,2006by and betweenDR Horton Inc. andCity of
DesertI-IotwSprir1gs.
$2,609,530.00
$67,000.00

10. 347/020269-0040
1036916072103/23/10
GradingAgreement for Tract No. 32030 (Village 4) dated
July 12, 2006 by and betweenDR Horton Inc. and City of
Desert Hot Springs.
[Need Subdivision Imp_rovementAgreement which
$26,000.00
$20,000.00
Schedule 1

TO LIEN CONTRACT

Page 184 of 296 ends

11. correspond? to Bond No. 6374143]

12. [NeedSubdivision Improvement Agreement which
corresponds to Bone;No.6416350]
$491,000.00
347/02026943040
l036916.07a03/23/10 ' 2"

Page 185 of 296 ends

Page 186 of 296 ends

U09 H 2@1a~
'
o5/21/2o1o 3236267
RECORDINGREQUESTEDBY Custmmer CDLat I ANDWHENRECORDEDMAILTO: Thgf?ggg?gswngohbg is lgbelI with the recardggndggiiirliigigf SkyborneVentures, DLC Lanny Hward
c/o Lansing Companres RS5e5sgoL'In<f:_gIugtyRéYerside
12770HighBluffllmive,Suite 160 9"‘ & R*‘-'=°"der
SanDiego, CA 92130
Attention:BenjaminM. Weiss, Esq._
- SPACE ABOV

SUBORDINATIONAGREEMENT
o THISSUBORDINATIONAGREEMENT(this "_Subordination")is datedfor reference purposesonly asof May"6,;2010and is made by WESTERNPACIFIC HOUSING,INC, a 0 Delaware corporation("WPH"), in favor of the CITY OF DESERT HOT SPRINGS (the 1uCifyn)'
RECITALS:
_c A, On or aboutthe date of this Subordination,the City and SkyborneVentures LLC, a Delawarelimitedliabilitycompany("Skyborne"), have entered into that certainLienContract recoidedin the Of?cialRecords of Riverside County, California("Official Records‘)as DocumentNo. 2010-0'L”.>(o'%dc» (the "Lien Contract").
0N E3~ 9.:- Z010 . B. Pursuantto theLien Contract, Skybornehas grantedthe City a lien on that certain realproperty ownedby Skyborne and located in the City of Desert Hot Springs, Riverside County, California, and legally describedon ExhibitA (collectively, the "Property"), in the "initial amountof $9,526,476.00, in order to secure Skyborne's obligationto completecertain improvementsrelativeto the Property, and the City has agreed, among othermatters, to release certain improvement bonds previously posted by WPH ‘or its affiliates (collectively, the ''Bonds''). 0
'
T C. — Pursuant toithat certain CorporationDeed of Trust with Assignment of Rents recorded in the OfficialRecordson.September 19, 2008, as Document No. 2008614882 (the "Deedof Trust"), Skybornepreviouslygrantedto WPHa lien on the Property in orderto secure Skyborne'sobligationto, among matters, cause the City to release the Bonds.

D. To induce the City to enter into the Lien Contract and release certain of the Bonds, WPH has agreed to subordinatethe lien of its Deed of Trust to the Lien Contract, as providedherein.
741244.02/so
142922-00008/5-4-10/the/cjb -1~

Page 187 of 296 ends

NOW THEREFORE,in considerationof the sum of Ten Dollars($10.00) and other good and valuableconsideration,the receiptand sufficiency of whichare herebyacknowledged, WPI-I herebyagreesasfollows:

I. Subordination.
'-The Deed of Trust is hereby subjectedand subordinatedto theLien Contract and all liens, rights, titles, assignments and security interestscreated by the Lien Contract.

Notwithstandingthe foregoing, the Subordination shallbe null and void and of no furtherforce or effect if there is any amendmentor othermodi?cationto the LienContractwithoutthe prior written approval of WPH. The foregoing sentence shall not, however, in any way limit or constrainthe City's right to releaseor partiallyrelease the Lien Contract as the Property as set forthin Paragraph3 of the Lien Contract.

2. Miscellaneous Prvisions.
(a) Binding Effect. This Subordinationshall inureto the bene?t of the City and shallbebinding upon WPHandtheir successorsand assigns. ~ is 3
,(b) ————Complete Agreement. This Subordinationcontainsall of the agreements , = 7;Pfandiconditionsrnade by —WPH.regarding the subjectmatter hereof,supersedesprior negotiations , l and eagreemehtsregardingtlie subject matter hereof, and may not be modified orally or in any ~ mannerotherthanby an agreement in writingsignedby the City and WPH. g (c) ” Governing Law. ThisSubordinationshallbe governedby and construed in accordancewith.the federal laws of the UnitedStatesof Americaand internallawsof the State of Californiaapplicableto contracts made andto be performedin suchstate.

IN WITNESSWHEREOF,WPHhas executedanddeliveredthis Subordinationas of the L’ 1 date set forth above.

WPH:

WESTERNPACIFIC HOUSING, INC,
a Delawareco oration
T B
_
‘u /m
_ Name: WilliamE. Ma , 111
Title: Vice President
741‘844.02/SD
“Z- l42922-00008/5~4-10/tbclcjb

Page 188 of 296 ends

ACKNOWLEDGMENT
State ofCaliforni ) countyof )
On S 26710, before
I r_l{lQ?
(7&ipe1'sona11y appearedLUtU‘J_Q(Y\4._ .- 4/“,IE: ___, whoprovedto meon thebasisof satisfactory evidenceto be thepersonge) w osénameggaéisylaresubscribedto the withininstrumentand acknowledgedto me that 11e executedthe same in 1?S authorizedcapacity?ieeyf andthat by Ins/hee?theirsignaturecs)‘on the instrumentthe persontej,or the entityupon behalfof whichthe person§s7 acted, executedthe instrument.

I certifyunderPENALTYOF PERJURYunderthe laws of the State of Ca11fo1'niathat ‘
" ' . ' |?\—--1'3-rIs=\-.vs'.>w-44......»-t3.~...nc3..
' theforegomgparagl aph 1s true andcorrect. N SHELLEYQ hwmfé?g T
T
” ‘T COMM.# 1695872
,
‘
Vb tnornnvpusue-cM.s1=onma{3
" SAN DIEGOcoumv C}
MyComnntsmian Expires
September 22, 2010 T
WITNESSmy handand ofhcial seal.
‘ *==--va-'-*~v=~‘-a--v«s:.-»-u.-..
, 1"" '
7 EV
V
' -I I
' Signatur®& s T, (Seal)
741344.02/so
142922-00003/5-4-10/tbc/cjb -3-

Page 189 of 296 ends

EXHIBIT A
EXHIBIT“A”

PRO EERTY
PARCEL3:(APN'S:667-300-001THROUGH054,058,’667-310-001THROUGH084 AND088; 657-320-001THROUGH026, 029THROUGH078, 080 THROUGH083AND667-330-001 THROUGH013, 015THROUGH072AND076)
LOTS31THROUGHZ86ANDLETTEREDLOTS"O"THROUGH“Z"AND"AA"OF NO.32030- 3 ASSHOWNONBYMAPONFILEINBOOK419 PAGES29 THROUGH39 OF MAPS,RECORDSOF RIVERSIDECOUNTY, CALIFORNIA.

PARCEL4: (APN‘S:667-340-001THROUGH048 AND051,’667-350-001THROUGH074AND078 THROUGH080; AND567-360-001THROUGH060AND064) '
LOTS1jTHROUGH182*ANDLEITEREDLOTS-"H"THROUGH"5"OFTRACTNO.32030-10,AS I SHOWNBYMAPONFILEIN BOOK419 PAGES40 THROUGH47 OFMAPS,RECORDSOF’ RIVERSIDECOUNTY,CALIFORNIA.

PARCEL5: (APN’S:667-080-006,667-100-029,031 AND038)
TENTATIVE (TRACT) MAP32030-4, BEINGASUBDIVISIONOFTHEFOLLOWINGDESCRIBED PROPERTY:

PARCELNO.I:

I THESOUTH ‘/52OFTHENORTHWEST‘/4OF SECTION28,TOWNSHIP2 SOUTH,RANGE4 EAST, SANBERNARDINOBASEANDMERIDIAN, STATEOFCALIFORNIA, ACCORDING TO THE OFFICIAL GOVERNMENTPLATTHEREOF. .

T _A.ANYAND>ALL*(I)IOIL,RIGHTS, (II) MINERALRIGHTS,(III) NATURALGASRIGHTS,(IV)

RIGHTSTO ALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(V)GEOTHERMAL 741344.002/s13
142922-00008/5-4-I0/tbclcjb -4-

Page 190 of 296 ends

STOREANDREMOVEANYOFTHESUBSURFACERESOURCESONORFROMTHEPROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTOWHIPSTOCKORDIRECTIONALLYDRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY, WELLS,TUNNELSANDSHAFISINTO, -THROUGHORACROSSTHESUBSURFACE OFTHEPROPERTY, ANDTO BOTTOMSUCH

WHIPSTOCKEDORDIRECTIONALLY DRILLEDWELLS,TUNNELSANDSHAITSWITHINOR

BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL, RETUNNEL, EQUIP,

MAINTAIN, REPAIR,DEEPENANDOPERATEANYSUCHWELLSORMINES,BUTWITHOUTHE RIGHTTODRILL,MINE,EXPLORE, OPERATE,PRODUCE,STOREORREMOVEANYOFTHE _ SUBSURFACERESOURCESTHROUGHORIN THESURFACEOFTHEPROPERTYORTHEUPPER FIVEHUNDRED(500) FEETOFTHESUBSURFACE OFTHEPROPERTY.)
PARCELNO.2:
‘THESOUTHWESTIJ/A IOF,’SEC’I'I0N 28,TOWNSHIP2 SOUTH,RANGE4 EAST,SANBERNARDINO BASEANDMERIDIAN, ‘STATEOFCALIFORNIA, ACCORDINGTO THEOFFICIALGOVERNMENT PLATTHEREOF.

EXCEPTINGTHEREFROMTHEEASTV2OFTHESOUTHWEST‘/4.

ALSOIEXCEPTINGHEREFROM THEEAST‘/2OFTHENORTHEAST‘AOFTHENORTHWEST‘A:

OFTHESOUTHWEST‘/4OFSAIDSECTION.

EXCEPTING THEREFROMTHESOUTHERLY40 FEETCONVEYEDTO THECOUNTYOF I RIVERSIDEBYDEEDFILEDFORRECORDJULY26, 1949ASINSTRUMENTNO.3081OF OFFICIALRECORDSOFRIVERSIDECOUNTY,CALIFORNIA.

EXCEPTINI3 THEREFROM ANYPORTIONLYINGWITHINTRACT32030-1C ASSHOWNONFILEIN BOOKF404PAGES67 THROUGH75 OFMAPS,RECORDSOFRIVERSIDECOUNTY, CALIFORNIA.

ALSOEXCEPTING THEREFROMALLTHATINTERESTCONVEYEDTODRHENERGY,INC.,A COLORADOCORPORATION BYDOCUMENTRECORDEDOCTOBER13, 2006, ASINSTRUMENT ONO. 2006-0756951OFOFFICIALRECORDSOFSAIDCOUNTY.SAIDINTERESTIS FURTHER DESCRIBEDASFOLLOWS:

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

RIGHTSTOALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(V)GEOTHERMAL HEATRIGHTSOR‘GEOTHERMALSUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY, (VI)WATERRIGHTSANDCLAIMSORRIGHTSTO WATERAND(VII)ALLPRODUCISDERIVED FROMANYOF THEFOREGOING(COLLECTIVELY, "SUBSURFACERESOURCES")LOCATEDIN OR

UNDERTHATCERTAINREALPROPERTYSITUATEDINTHECOUNTYOFRIVERSIDE,STATEOF CALIFORNIADESCRIBEDINEXHIBIT"A"ATTACHEDHERETOANDINCORPORATEDHEREIN (THE“PROPERTY“),TO THEEXTENTSUCHSUBSURFACERESOURCESHAVENOTBEEN PREVIOUSLY RESERVED;AND
741344.02/sn
I42922-00008/5—4-10/lbc/cjb -5»

Page 191 of 296 ends

B.THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,

STOREANDREMOVEANYOFTHESUBSURFACERESOURCESONORFROMTHEPROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTOWHIPSTOCKORDIRECTIONALLY DRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY, WELLS,TUNNELSANDSHAFTSINTO, ' THROUGHORACROSSTHESUBSURFACE OFTHEPROPERTY, ANDTO BOTTOMSUCH

WHIPSTOCKEDORDIRECTIONALLY DRILLEDWELLS,TUNNELSANDSHAI-TSWITHINOR

BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY,ANDTOREDRILL,REIUNNEL, EQUIP,

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

SUBSURFACERESOURCESTHROUGHORINTHESURFACEOFTHEPROPERTYORTHEUPPER FIVEHUNDRED(500) FEETOFTHESUBSURFACEOFTHEPROPERTY.)
PARCELNO.3:

THEEAST‘/2OFTHESOUTHWEST‘A,ANDTHEEAST‘/2OFTHENORTHEAST‘/54OFTHE NORTHWEST‘/4OFTHESOUTHWEST1/:OFSECTION28,TOWNSHIP2 SOUTH,RANGE4 EAST,

SANBERNARDINOBASEANDMERIDIAN,STATEOFCALIFORNIA, ACCORDINGTOTHE OFFICIALGOVERNMENTPLATTHEREOF.

EXCEPTINGTHEREFROMTHESOUTHERLY40 FEETASCONVEYEDTO THECOUNTYOF RIVERSIDE, BYDEEDRECORDEDJULY26, 1949ASINSTRUMENTNO.3081 OFOFFICIAL RECORDSOFRIVERSIDECOUNTY,CALIFORNIA.
’ EXCEPTING—THEREFROM ANYPORTIONLYINGWITHINTRACT32030-1ASSHOWNONFILEIN BOOK404 PAGES67THROUGH75 or MAPS,RECORDSOFRIVERSIDECOUNTY,CALIFORNIA.

I ALSOIEXCEPTING THEREFROMANYPORTIONLYINGWITHINTRACT32030-3ASISHOWNON ’ FILEIN BOOK419 PAGES29 THROUGH39 OFMAPS,RECORDSOFRIVERSIDECOUNTY, CALIFORNIA.

ALSOEXCEPTINGTHEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC.,A COLORADO CORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2006,ASINSTRUMENT 0 N0.2006-0756951OFOFFICIALRECORDSOFSAIDCOUNTY. SAIDINTERESTIS FURTHER DESCRIBED ASFOLLOWS:
, A.ANYANDALL(I)COILRIGHTS,(II) MINERALRIGHTS,(III) NATURALGASRIGHTS,(Iv)

RIGHTSTO ALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(V)GEOTHERMAL I’ HEATRIGHTSORGEOTHERMAL SUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY, ’ (VI)WATERRIGHTSANDCLAIMSORRIGHTSTO WATERAND(VII)ALLPRODUCTSDERIVED FROMANYOFTHEFOREGOING(COLLECTIVELY, "SUBSURFACERESOURCES")LOCATEDIN OR

UNDERTHATCERTAINREALPROPERTYSITUATEDINTHECOUNTYOFRIVERSIDE, STATEOF CALIFORNIADESCRIBEDIN EXHIBIT"A"ATTACHEDHERETOANDINCORPORATEDHEREIN (THE."PROPERTY"), TOTHEEXTENTSUCHSUBSURFACE RESOURCESHAVENOTBEEN PREVIOUSLYRESERVED; AND
7’ B;THEAPERPETUAI. RIGHTTODRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,

STOREANDREMOVEANYOFTHESUBSURFACERESOURCESONORFROMTHEPROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTO WHIPSTOCKORDIRECTIONALLYDRILLAND MINE,FROMLANDSOTHER"THANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,

THROUGHORACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO BOTTOMSUCH WHIPSTOCKEDORDIRECTIONALLYDRILLEDWELLS,TUNNEL5ANDSHAFTSWITHINOR

BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL,RETUNNEL, EQUIP,

MAINTAIN, REPAIR,DEEPENANDOPERATEANYSUCHWELLSOR MINES,BUTWITHOUTTHE 741344.02/so
I42922:oooos/5.4-10/the/cjb -6-

Page 192 of 296 ends

RIGHTTODRILL,MINE,EXPLORE, OPERATE,PRODUCE, STOREORREMOVEANYOFTHE

SUBSURFACERESOURCESTHROUGHORINTHESURFACEOFTHEPROPERTYORTHEUPPER FIVEHUNDRED(500) FEETOFTHESUBSURFACEOFTHEPROPERTY.) '
PARCEL6: (AF’N’S:667-100-029,031 AND038;667-12U~O5I, 052, 0255THROUGH027) TENTATIVE(-TRACT)MAP32030—5,BEINGASUBDIVISIONOFTHEFOLLOWINGDESCRIBED PROPERTY:

PARCELNO.1
THESOUTHWEST1/4OFSECTION28,TOWNSHIP2 SOUTH,RANGE4 EAST,SANBERNARDINO

BASEANDMERIDIAN, STATEOFCALIFORNIA,CCORDINGTOTHEOFFICIALGOVERNMENT PLATTHEREOF.

EXCEPTINGTHEREFROMTHEEAST‘/2OFTHESOUTHWESTI/4.

ALSOEXCEP'l'INGTHEREFROMTHEEAST‘/2OFTHENORTHEAST‘/4OFTHENORTHWEST‘/4 OFTHESOUTHWEST‘/4OFSAIDSECTION.

IALSOEXCEPTING THEREFROMTHESOUTHERLY40 FEETCONVEYEDTOTHECOUNTYOF RIVERSIDEBYDEEDFILEDFORRECORDJULY26, 1949ASINST NO.3081OF OFFICIALRECORDSOFRIVERSIDECOUNTY,CALIFORNIA.

ALSOEXCEPTING THEREFROM ANYPORTIONLYINGWITHINTRACT32030-1AsSHOWNON FILEINBOOK404, PAGES67 THROUGH75, OFMAPS,RECORDS OFRIVERSIDECOUNTY, CALIFORNIA.

ALSOEXCEPTINGTHEREFROMALLTHATINTERESTCONVEYEDTODRHENERGY,INC.,A COLORADOCORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2006,ASINSTRUMENT i NO.2006-0756951OFOFFICIALRECORDSOFSAIDCOUNTY.SAIDINTERESTIS FURTHER’ DESCRIBEDASFOLLOWS:

A.’ANYANDALL(I) OILRIGHTS,(II) MINERALRIGHTS,(III) NATURAL GASRIGHTS,(IV) RIGHTSTO ALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN, (v) GEOTHERMAL _VHEATRIGHTSORGEOTHERMALSUBSTANCESTHAT‘MAYBEPRODUCED FROMTHEPROPERTY, (VI)WATERRIGHTSANDCLAIMSORRIGHTST0 WATERAND(VII)ALLPRODUCTSDERIVED7 FROMANYOFTHEFOREGOING(COLLECTIVELY, "SUBSURFACERESOURCES") LOCATEDINOR UNDERTHATCERTAINREALPROPERTYSITUATEDINTH_ECOUNTYOFRIVERSIDE, STATEOF CALIFORNIADESCRIBEDINEXHIBIT"A"ATTACHEDHERETOANDINCORPORATEDHEREIN (THE"PROPERTY"), TOTHEEXTENTSUCHSUBSURFACERESOURCESHAVENOTBEEN PREVIOUSLY RESERVED;AND _

3..THEPERPETUALRIGHTTODRILL,MINE,EXPLOREANDOPERATEFOR ANOPRODUCE, _ _PORE ANDREMOVE ANYOFTHESUBSURFACERESOURCESONORFROMTHEPROPERTY,

A INCLUDINGWITHOUTLIMITATIONTHERIGHTTOWHIPSTOCKORDIRECTIONALLYDRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO, - THROUGHORACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO BOTTOMSUCH

WHIPSTOCKEDORDIRECTIONALLYDRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL, RETUNNEL,EQUIP,

MAINTAIN, REPAIR,DEEPENANDOPERATEANYSUCHWELLSOR MINES,BUTWITHOUTHE

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

SUBSURFACERESOURCESTHROUGHORINTHESURFACEOFTHEPROPERTYORTHEUPPER 741844.02/SD
142922«00008l5-4-10/tbc/cjh ~7~

Page 193 of 296 ends

FIVEHUNDRED(SOO)FEE!‘OFTHESUBSURFACEOFTHEPROPERTY.)
PARCEL NO.2:

THEEAST1/2OFTHESOUTHWEST1/4,ANDTHEEAST1/2OFTHENORTHEAST‘AOf?THE "NORTHWEST‘/1OFTHESOUTHWEST‘/4OFSECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST,

SANBERNARDINOBASEANDMERIDIAN, STATEOFCALIFORNIA, ACCORDINGTOTHE OFFICIALGOVERNMENTPLATTHEREOF.

EXCEPTINGTHEREFROMTHESOUTHERLY40 FEETASCONVEYEDTOTHECOUNTYOF RIVERSIDE,BYDEEDRECORDEDJULY26, 1949ASINSTRUMENTNO.3081OFOFFICIAL RECORDSOFRIVERSIDECOUNTY, CALIFORNIA.

ALSOEXCEPTING THEREFROMANYPORTIONLYINGWITHINTRACT320301 ASSHOWNON FILEIN BOOK404, PAGES67THROUGH75, OFMAPS,RECORDSOFRIVERSIDECOUNTY, CALIFORNIA.
‘ALSO EXCEPTING THEREFROM ANYPORTIONLYINGWITHIN'|'l-‘(ACT32030~3ASSHOWNON FILEINBOOK419, PAGES29THROUGH39, OFMAPS,RECORDSOFRIVERSIDECOUNTY,’ CALIFORNIA.
” I ALSOEXCEPTINGTHEREFROMALLTHATINTERESTCONVEYEDTODRHENERGY,INC.,A COLORADOCORPORAIION BYDOCUMENTRECORDEDOCTOBER13, 2006,ASINSTRUMENT I 7 NOT. 2005-0756951OFOFFICIALRECORDSOFSAIDCOUNTY.SAIDINTERESTIS FURTHER DESCRIBEDASFOLLOWS:
* A.ANYANDALL(I),O_ILRIGHTS,(II) MINERALRIGHTS,(III) NATURAL GASRIGHTS,(IV) I
’

RIGHTSTO ALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(V)GEOTHERMAL

HEATRIGHTSORGEOTHERMAL SUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY, (VI)WATERRIGHTSANDCLAIMSORRIGHTSTOWATERAND(VII)ALLPRODUCTSDERIVED, FROMANYOFTHEFOREGOING(COLLECTIVELY, "SUBSURFACERESOURCES")LOCATEDIN OR UNDER_THATjCERTAIN REALPROPERTYSITUATEDINTHECOUNTYOF RIVERSIDE,STATEOF I CALIFORNIADESCRIBEDIN EXHIBIT"A“ATTACHEDHERETOANDINCORPORATEDHEREINI (THE"PROPERTY"), TOTHEEXTENTSUCHSUBSURFACERESOURCESHAVENOTBEEN PREVIOUSLYRESERVED;AND I B.j'II-IEPERPETUALT RIGHTTODRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,

STOREANDREMOVEANYOFTHESUBSURFACERESOURCESONORFROMTHEPROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTOWHIPSTOCKORDIRECTIONALLY DRILLAND

I MINE,FROMLANDSOTHERTHANTHEPROPERTY, WELLS,TUNNELSANDSHAFTSINTO,

THROUGHORACROSSTHESUBSURFACE OFTHEPROPERTY,ANDTO BOTTOMSUCH

IWHIPSTOCKED ORDIRECTIONALLYDRILLEDWELLS,TUNNELSANDSHAI-TSWITHINOR

BEYONDTHEEXTERIOR LIMITSOFTHEPROPERTY,ANDTO REDRILL,RETUNNEL, EQUIP,

MAINTAIN, REPAIR,DEEPENANDOPERATEANYSUCHWELLSORMINES,BUTWITHOUTETHE

RIGHTTODRILL,MINE,EXPLORE, OPERATE,PRODUCE,STOREORREMOVEANYOFTHE

SUBSURFACERESOURCES THROUGHORINTHESURFACEOFTHEPROPERTYORTHEUPPER I FIVEHUNDRED(S00)FEETOFTHESUBSURFACEOFTHEPROPERTY.)
PARCEL3:

THATPORTIONOFTHEEAST‘/2OFSECTION29, TOWNSHIP2 SOUTH,RANGE4 WEST,SAN

BERNARDINOBASEANDMERIDIAN, STATEOFCALIFORNIA, ACCORDINGTOTHEOFFICIAL GOVERNMENTPLATTHEREOF.
741844.02/SD
142922-pooos/5A1o/Ibo/cjb -8-

Page 194 of 296 ends

COMMENCINGATTHESOUTHEASTCORNEROFSAIDSECTION29; THENCENORTHERLY ALONGTHEEASTERLYBOUNDARYOFSAIDSECTION29,ADISTANCEOF906 FEETTOTHE TRUEPOINTOFBEGINNING;THENCEWESTERLYANDPARALLELTHESOUTHERLYBOUNDARY OFSAIDSECTION29,ADISTANCEOF528 FEETTHENCENORTHERLYANDPARALLELWITH THEEASTERLYBOUNDARYOFSAIDSECTION29, ADISTANCEOF577 FEET;THENCE -EASTERLYANDPARALLELWITHTHESOUTHERLYBOUNDARYOFSAIDSECTION29, A DISTANCE‘ OF523 FEETTOTHEEAFSTERLY BOUNDARYOFSAIDSECTION29; THENCE SOUTHERLYALONGTHEEASTERLYBOUNDARYOFSAIDSECTION29, ADISTANCEOF577 FEETTO THETRUEPOINTOFBEGINNING.

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

RIGHTSTOALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(V)GEOTHERMAL

HEATRIGHTSORGEOTHERMAL SUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY,

I (VI)WATERPRIGHTS ANDCLAIMSORRIGHTSTOWATERAND(VII)ALLPRODUCTSDERIVED FROMANYOFTHEFOREGOING (COLLECTIVELY, "SUBSURFACERSOURCES")LOCATEDINOR

UNDERTHATCERTAINREALPROPERTYSIDJATEDINTHECOUNTYOFRIVERSIDE, STATEOF MCALIFORNIAFDIESCRIBEPD INEXHIBIT"A"ATTACHEDHERETOANDINCORPORATED HEREIN (THE"PROPERTY‘—'), To THEEXTENTSUCHSUBSURFACERESOURCESHAVENOTBEEN PREVIOUSLYRESERVED; AND
I B.THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,

STOREANDREMOVEANYOFTHESUBSURFACE RESOURCESONORFROMTHEPROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTOWHIPSTOCKORDIRECHONALLYDRILLAND P:MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,_TUNNELS ANDSHAFT’.-3 INTO,

THROUGH ORACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO BOTTOMSUCH ’ WHIPSTOCKED OR DIRECTIONALLYDRILLEDWELLS,TUNNELSANDSHAFISWITHINOR BEYOND THEEXTERIORLIMITSOFTHEPROPERTY, ANDTO REDRILL,RETUNNEL,QUIP, _ MAINTAIN, REPAIR,DEEPENANDOPERATEANYSUCHWELLSORMINES,BUTWITHOUTTHE

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

A ISUBSURFACE RESOURCESTHROUGH ORINTHESURFACEOFTHEPROPERTYORTHEUPPER FIVEHUNDRED(S00)FEE!"OFTHESUBSURFACEOFTHEPROPERTY.)
PARCELNO.4:

THENORTH165 FEETOFTHEREALPROPERTYDESCRIBEDASFOLLOWS:

THATPORTIONOFTHEEAST‘/2OFSECTION29,TOWNSHIP2 SOUTH,RANGE4 EAST,SAN

BERNARDINOBASEANDMERIDIAN, STATEOFCALIFORNIA,CCORDINGTOTHEOFFICIAL GOVERNMENT PLATTHEREOF.

A COMMENCING ATTHESOUTHEASTCORNEROFSAIDSECTION 29;THENCENORTHERLY A ALONGTHEEASTERLYsounmmvorsmosscrrom,Amsmnceor 329.0 FEETTOTHE TRUEPOINTOFBEGINNING;THENCEWESTERLYANDPARALLELWITHTHESOUTHBOUNDARY OF SAIDSECTION,ADISTANCEOF528.0 FEET;THENCENORTHERLYANDPARALLELWITH THEEASTERLYBOUNDARYOFSAIDSECTION,ADISTANCEOF577.0FEET;THENCEEASTERLY ANDPARALLELWITHITHESOUTHBOUNDARYOF SAIDSECTIONADISTANCEOF528.0 FEET;

THENCESOUTHERLYALONGTHEEASTERLYBOUNDARYOF SAIDSECTION,A DISTANCEOF 741844.02/SD
I42922-OOOOSIS-4wI0/tbc/cjb -9-

Page 195 of 296 ends

.577.0 FEETTO THETRUEPOINTOFBEGINNING.

ALSOEXCEPTINGTHEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC.,A COLORADOCORPORATIONBYDOCUMENTRECORDEDOCTOBER13,2006,ASINSTRUMENT NO.200643756951OFOFFICIALRECORDSOFSAIDCOUNTY.SAIDINTERESTIS FURTHER DESCRIBEDASFOLLOWS:

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

RIGHTSTOALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(V)GEOTHERMAL

UNDERTHATCERTAINREALPROPERTYSITUATEDINTHECOUNTYOFRIVERSIDE, STATEOF CALIFORNIADESCRIBEDINEXHIBIT"A"ATTACHEDHERETOANDINCORPORATEDHEREIN —— (THE."PROPERTY"), TOTHEEXTENTSUCHSUBSURFACERESOURCESHAVENOTBEEN PREVIOUSLYRESERVED;AND
B.THEPERPETUALRIGHTTODRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE, A
’ STOREANDREMOVEANYOFTHESUBSURFACERESOURCESONORFROMTHEPROPERTY, 2 INCLUDINGWITHOUTLIMITATIONTHERIGHTTOWHIPSTOCKORDIRECTIONALLYDRILLAND_ MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,

THROUGHORACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO BOTTOMSUCH WHIPSTOCKED onDIRECTIONALLY DRILLEDWELLS,TUNNELSANDSHAFTS WITHINon 7 1 BEYONDTHE—EXTERIOR LIMITSOFTHE PROPERTY,ANDTOREDRILL, RETUNNEL, EQUIP,

MAINTAIN, REPAIR,DEEPENANDOPERATEANYSUCHWELLSORMINES,BUTWITHOUTHE RIGHTYTODRILL,’MINE,EXPLORE, OPERATE,PRODUCE,STOREORREMOVEANYOFTHE

A SUBSURFACERESOURCESTHROUGHORINTHESURFACEOFTHEPROPERTYORTHEUPPER FIVEHUNDRED(500) FEETOFTHESUBSURFACEOFTHEPROPERTY.)
PARCELNO.5:
** ‘THATP_oImoNor"meEAST1./2OFSECTION29,TOWNSHIP2 SOUTH,RANGE 4 EAST, SAN

A A BERNARDINOBASEANDMERIDIAN, STATEOFCALIFORNIA, ACCORDINGTO THEOFFICIAL

GOVERNMENTPLATTHEREOF
,CQMMENCING ATTHESOUTHEASTCORNERor SAIDSECTION29;THENCENORTHERLY I ALONGTHEIEASTERLYBOUNDARYos SAIDSECTION29, ADISTANCEor 329 FEETTOTHE A TRUEPOINTOFBEGINNING; THENCEWESTERLYANDPARALLELWITHSOUTHERLYBOUNDARY OFSAIDSECTION29, A DISTANCE OF 528 FEET;THENCENORTHERLYANDPARALLELWITH THEEASTERLYBOUNDARYOFSAIDSECTION29, ADISTANCEOF577 FEET;THENCE EASTERLYANDPARALLELWITHTHESOUTHERLYBOUNDARYOFSAIDSECTION29, A DISTANCEOF 528 FEET,‘THENCESOUTHERLYANDALONGTHEEASTERLYBOUNDARYOFSAID SECTION29, ADISTANCEOF577 FEETTOTHETRUEPOINTOFBEGINNING.

EXCEPTINGTHERE]-‘ROMTHENORTH165 FEETTHEREOF.

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

RIGHTSTOALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(V)GEOTHERMAL 741844.02/sD
142922-00008/5-4-10/Ibo/cjb ~10-

Page 196 of 296 ends

UNDERTHATCERTAINREALPROPERTYSITUATEDINTHECOUNTYOFRIVERSIDE,STATEOF CALIFORNIADESCRIBEDIN EXHIBIT"A"ATTACHEDHERETOANDINCORPORATEDHEREIN (THE‘'PROPERTY"),T0 THEEXTENTSUCHSUBSURFACERESOURCESHAVENOTBEEN PREVIOUSLYRESERVED; AND
B.THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,

STOREANDREMOVEANYOFTHESUBSURFACERESOURCESONORFROMTHEPROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTOWHIPSTOCKORDIRECTIONALLY DRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,

THROUGHORACROSSTHESUBSURFACE OFTHEPROPERTY,ANDTO BOTTOMSUCH WHIPSTOCKEDORDIRECTIONALLYDRILLEDWELLS,TUNNEL5ANDSHAFTSWITHINOR

BEYONDTHEEXTERIORLIMITS OFTHEPROPERTY,ANDTOREDRILL,RETUNNEL, EQUIP,

MAINTAIN, REPAIR,DEEPENANDOPERATEANYSUCHWELLSORMINES,BUTWITHOUTHE

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

SUBSURFACERESOURCESTHROUGHORINTHESURFACEOFTHEPROPERTYORTHEUPPER FIVEHUNDRED(500) FEETOFTHESUBSURFACEOFTHEPROPERTY.)
PARCELNO.6:
* _THAI PORTIONQFTHEEAST1/2OFSECTION29,TOWNSHIP2 SOUTH,RANGE4 EAST,SAN A : BERNARDINOBASEANDMERIDIAN, STATEOFCALIFORNIA, ACCORDINGTOTHEOFFICIAL GOVERNMENTPLATTHEREOF.

COMMENCING ATTHESOUTHEASTCORNEROFSAIDSECTION29; THENCEWESTERLYALONG THESOUTHERLYBOUNDARYOFSAIDSECTION29, ADISTANCEOF528FEETTO THETRUE POINTOFBEGINNING; THENCECONTINUINGWESTERLYALONGTHESAIDSOUTHERLY BOUNDARY OFSAIDSECTION29,A DISTANCEOF528 FEET;THENCENORTHERLYAND PARALLEL WITHTHEEASTERLYBOUNDARYOFSAIDSECTION29, ADISTANCEOF2640FEET,’ ’ THENCEASTERLYANDPARALLELWITHTHESOUTHERLYBOUNDARYOFSAIDSECTION29, A DISTANCE OF528FEET;THENCESOUTHERLYANDPARALLELWITHTHEEASTERLYBOUNDARY OFSAIDSECTION29, A DISTANCEOF2640FEETTOTHETRUEPOINTOFBEGINNING.

I ALSOEXCEPTING THEREFROMALLTHATINTERESTCONVEYED TO DRHENERGY,INC.,A COLORADOCORPORATIONBYDOCUMENTRECORDEDOCTOBER13,2006,ASINSTRUMENT ONO. 20060756951OFOFFICIALRECORDSOFSAIDCOUNTY.SAIDINTERESTIS FURTHER DESCRIBEDASFOLLOWS:

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

RIGHTSTOALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(V)GEOTHERMAL HEAT ORGEOTHERMAL SUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY,» “ (VI)WATERRIGHTSANDCLAIMSORRIGHTSTOWATERAND(VII)ALLPRODUCTSDERIVED FROMANYOFTHEFOREGOING(COLLECTIVELY, "SUBSURFACERESOURCES") LOCATEDINOR UND.ER,_THATCERTAINREALPROPERTYSITUATEDINTHECOUNTYOFRIVERSIDE, STATEOF I CALIFORNIADESCRIBED INEXHIBIT"A"ATTACHEDHERETOANDINCORPORATED HEREIN (THE"PROPERTY"),TOTHEEXTENTSUCHSUBSURFACERESOURCESHAVENOTBEEN PREVIOUSLYRESERVED;AND .

B.THEPERPETUAL RIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,

STOREANDREMOVEANYOFTHESUBSURFACE RESOURCESONORFROMTHEPROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTOWHIPSTOCK ORDIRECTIONALLY DRILLAND 741844.02/SD - 142922-00008/5-4-I0/tbc/ojb -I 1-

Page 197 of 296 ends

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,

THROUGHORACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO BOTTOMSUCH

WHIPSTOCKEDORDIRECFIONALLY DRILLEDWELLS,TUNNELSANDSHAI-TSWITHINOR BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY,AND"TOREDRILL,RETUNNEL, EQUIP,

MAINTAIN,REPAIR,DEEPENANDOPERATEANYSUCHWELLSORMINES,BUTWITHOUTTHE

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

SUBSURFACERESOURCESTHROUGHORINTHESURFACEOFTHEPROPERTYORTHEUPPER FIVEHUNDRED(500) FEETOFTHESUBSURFACEOFTHEPROPERTY.)
PARCEL7: (APN'S:667-080-006;667~100~O29,031 AND038; 667-120~051,052 AND024) TENTATIVE (TRACT)MAP320306, BEINGASUBDIVISIONOFTHEFOLLOWINGDESCRIBED PROPERTY:

PARCELNO. 1:
’ THESOUTH"/2OFTHENORTHWEST‘AOFSECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST,

SANBERNARDINOBASEANDMERIDIAN, STATEOFCALIFORNIA, ACCORDINGTOTHE OFFICIALGOVERNMENT PLATTHEREOF. , ALSOgsxcemws THEREFROMALLTHATINTERESTcosweveoT0 DRHENERGY,Inc, A _coLoRA,D0CORPORATION BYDOCUMENTRECORDEDOCTOBER13, 2006,ASINSTRUMENT I NO.2O06~075695’1OFP’OFFICIAL RECORDSOFSAIDCOUNTY.SAIDINTERESTIS FURTHER DESCRIBEDASFOLLOWS: A
I
I
’
A-AIANY ANDALL0(1)OIL,RIGHTS,(II) MINERALRIGHTS,(III) NATURALGASRIGHTS,(IV)

RIGHTSTOALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN, (V)GEOTHERMAL

HEATRIGHTSORIGEOTHERMAL SUBSTANCES THATMAYBEPRODUCEDFROMTHEPROPERTY, (VI)WATERRIGHTSANDCLAIMSORRIGHTSTOWATERAND(VII)ALLPRODUCTSDERIVED FROMANYOFTHEFOREGOING (COLLECTIVELY, "SUBSURFACERESOURCES")LOCATEDINOR

UNDERTHATCERTAINREALPROPERTYSI'TUATEDINTHECOUNTYOFRIVERSIDE, STATEOF 7 CALIFORNIADESCRIBEDIN EXHIBIT"A"ATTACHEDHERETOANDINCORPORATED HEREIN .(THE"PROPERTY"),TO THEEXTENTSUCHSUBSURFACE RESOURCESHAVENOTBEEN "PREVIOUSLY RESERVED; AND
B.THEPERPETUAL RIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,

STOREANDREMOVEANYOFTHESUBSURFACERESOURCESONORFROMTHEPROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTOWHIPSTOCKORDIRECTIONALLY DRILLAND

MINE,FROMIANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,

THROUGHORACROSSTHESUBSURFACE OFTHEPROPERTY,ANDTOBOTTOMSUCH

WHIPSTOCKEDORDIRECTIONALLYDRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHE EXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL, RETUNNEL, EQUIP,

MAINTAIN, REPAIR,DEEPENANDOPERATEANYSUCHWELLSOR MINES,BUTWITHOUTTHE

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

SUBSURFACERESOURCES THROUGHORINTHESURFACEOFTHEPROPERTYORTHEUPPER FIVEHUNDRED(500) FEETOFTHESUBSURFACEOFTHEPROPERTY.) ,
PARCELNO.2:

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

BASEANDMERIDIAN,STATEOFCALIFORNIA, ACCORDINGTOTHEOFFICIALGOVERNMENT PLATTHEREOF.
741844.02/SD
142922-oooos/5-4.To/we/cjb -12-

Page 198 of 296 ends

EXCEPTINGTHEREFROMTHEEAST‘/2OFTHESOUTHWEST‘/4.

ALSOEXCEPTINGTHEREFROMTHEEAST‘/2OFTHENORTHEAST‘AOFTHENORTHWEST‘A OFTHESOUTHWEST1/4OFSAIDSECTION.

ALSOEXCEPTINGTHEREFROMTHESOUTHERLY40 FEETCONVEYEDTOTHECOUNTYOF RIVERSIDEBYDEEDFILEDFORRECORDJULY26, 1949ASINSTRUMENTNO.3081 OF OFFICIAL RECORDSOFRIVERSIDECOUNTY,CALIFORNIA.

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

A.ANYANDALL(I) OILRIGHTS,(II) MINERALRIGHTS,(III)NATURALGASRIGHTS,(IV) RIGHTS TO ALLOTHERHYDROCARBON3 BYWHATSOEVERNAMEKNOWN,(V)GEOTHERMAL

HEATRIGHTSORGEOTHERMAL SUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY, (VI)WATERRIGHTSAND‘CLAIMSOR‘RIGHTSTOWATERAND(VII)ALLPRODUCTS DERIVED _ FROMANYOFTHEFOREGOING(COLLECTIVELY, "SUBSURFACERESOURCES")LOCATEDIN OR I UNDERTHATCERTAINREAL "PROPERTYSITUATEDINTHECOUNTYOFRIVERSIDE,STATEOF " 7”CALIEO.RNIAADESCRI8ED INEXHIBIT"A"ATTACHEDHERETOANDINCORPORATEDHEREIN (THE"PROPERTY“), TOTHEEXTENTSUCHSUBSURFACERESOURCESHAVENOTBEEN PREVIOUSLYRESERVED;AND
B.THEPERPETUAL RIGHTTODRILL, MINE,EXPLOREANDOPERATEFORANDPRODUCE, I STOREANDREMOVEANYOFTHE.SUBSURFACERESOURCES ONORFROMTHEPROPERTY,

INLCLUDINGWITHOUT LIMITATIONTHERIGHTTOWHIPSTOCKORDIRECTIONALLYDRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,

THROUGHORACROSSTHESUBSURFACE OFTHEPROPERTY,ANDTO BOTTOMSUCH I ‘ WHIPSTOCKED ORDIRECTIONALLY DRILLEDWELES,TUNNELSANDSHAFTSWITHINOR - BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY,ANDTOREDRILL, RETUNNEL, EQUIP, 7’ MAINTAIN, REPAIR,DEEPENADOPERATEANYSUCHWELLSORMINES,BUTWITHOUTHE _RIGHT_TO DRILL,MINE,EXPLORE, OPERATE,PRODUCE,sromzORREMOVEANYor:THE SUBSURFACE RESOURCESTHROUGHORINTHESURFACEorTHEEPROPERTYORTHEUPPER FIVEHUNDRED (500) FEE!‘or THEsuasumceor=THEPROPERTY.)
PARCELN0. 3:

THEEAST‘/2OFTHESOUTHWEST‘A,ANDTHEEAST‘/,2OFTHENORTHEAST ‘A OFTHE NORTHWEST 1/4__0.F THESOUTHWEST‘/4OFSECTION28,TOWNSHIP2 SOUTH,RANGE4 EAST,

SANBERNARDINOBASEANDMERIDIAN, STATEOFCALIFORNIA, ACCORDINGTOTHE OFFICIALGOVERNMENTPLATTHEREOF.

EXCEEPTINGCTHEREFROM THESOUTHERLY40 FEETAScomveveoTOTHEcourmOF RIVERSIDE,BYDEEDRECORDEDJULY25,1949ASmsmumewvN0. 3081 OF OFFICIAL RECORDSOFRIVERSIDECOUNTY,CALIFORNIA. A
EXCEPTINGTHEREFROMANYPORTIONLYINGWITHINTRACT32030-1ASSHOWNON FILEIN BOOK404 PAGES67THROUGH75 OF MAPS,RECORDSOFRIVERSIDECOUNTY,CALIFORNIA. 741844.02/SD
142.922-00008/5-4-10/the/ojb -13-

Page 199 of 296 ends

ALSOEXCEPTINGTHEREFROMANYPORTIONLYINGWITHINTRACT320306 ASSHOWNON FILEINBOOK419PAGES29 THROUGH39 OF MAPS,RECORDSOFRIVERSIDECOUNTY, CALIFORNIA.

ALSOEXCEPTINGTHEREFROMALLTHATINTEREBT CONVEYEDTODRHENERGY,INC.,A COLORADOCORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2006,ASINSTRUMENT NO.2006-0756951OFOFFICIALRECORDSOFSAIDCOUNTY. SAIDINTERESTIS FURTHER . DESCRIBEDAS FOLLOWS: ,
A.ANYANDALL(I) OILRIGHTS,(II) MINERALRIGHTS,(III) NATURALGASRIGHTS,(IV)

RIGHTSTOALLOTHERHYDROCARBONS BYWHATSOEVER NAMEKNOWN,(V)GEOTHERMAL

UNDERTHATCERTAIN, REALPROPERTYSITUATEDINTHECOUNTYOFRIVERSIDE, STATEOF CALIFORNIADESCRIBEDIN EXHIBIT"A"ATTACHEDHERETOANDINCORPORATED HEREIN (THE"PROPERTY"),TOTHEEXTENTSUCHSUBSURFACERSOURCESHAVENOTBEEN PREVIOUSLYRESERVED;AND
B.THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATE FORANDPRODUCE,

STOREANDREMOVEANYOFTHESUBSURFACERESOURCESONORFROMTHEPROPERTY, INCLUDING" WITHOUTLIMITATIONTHERIGHTTOWHIPSTOCKORDIRECTIONALLYDRILLAND

I MINE,FROEMLANDSPOTHER THANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,

A -A THROUGH ORACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO BOTTOMSUCH ’
* PWHIPSTOCKEDWOR DIRECTIONALLY DRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHEEXTERIOR LIMITSOFTHEPROPERTY,ANDTO REDRILL, RETUNNEL, EQUIP,

MAINTAIN, REPAIR, DEEPENANDOPERATEANYSUCHWELLSORMINES,BUTWITHOUTTHE

RIGHTTO DRILL,MINE,EXPLORE,OPERATE,PRODUCE,STOREORREMOVEANYOFTHE SUBSURFACE RESOURCESTHROUGHORINTHESURFACEOFTHEPROPERTY" ORTHEUPPER FIVEHUNDRED(500)FEETOFTHESUBSURFACE OFTHEPROPERTY.)
PARCELNO.4:

THATPORTIONOFTHEEAST‘/2OFSECTION29,TOWNSHIP 2 SOUTH,RANGE3 EAST,SAN I 5 BERNARDINO BASEANDMERIDIAN,STATEOFCALIFORNIA, ACCORDINGTOTHEOFFICIAL GOVERNMENT PLATTHEREOF.

COMMENCING ATTHESOUTHEASTCORNEROFSAIDSECTION29,‘THENCENORTHERLY ALONGTHEEASTERLYBOUNDARYOFSAIDSECTION29, ADISTANCE OF 1483FEETTOTHE TRUEPOINT(OFBEGINNING; THENCEWESTERLYANDPARALLELWITHTHESOUTHERLY BOUNDARYOFSAIDSECTION29,ADISTANCEOF528 FEET}THENCENORTHERLYAND I PARALLELWITHTHEEASTERLYBOUNDARYOFSAIDSECTION29, ADISTANCEOF 577FEB‘; THENCEASTERLYLANDPARALLELWITHTHESOUTHERLYBOUNDARYOFSAIDSECTION29, A ’ DISTANCEOFF528FEETTO THEEASTERLYBOUNDARYOFSAIDSECTION29; THENCE SOUTHERLYALONGTHEEASTERLYBOUNDARYOFSAIDSECTION29, ADISTANCEOF 577 FEETTOTHETRUEPOINTOFBEGINNING. -
ALSOEXCEPTINGTHEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC.,A COLORADOCORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2006, ASINSTRUMENT NO.2005-0756951OFOFFICIAL RECORDSOFSAIDCOUNTY. SAIDINTERESTIS FURTHER DESCRIBED ASFOLLOWS:

A. ANYANDALL(I) OILRIGHTS,(II) MINERALRIGHTS,(III) NATURALGASRIGHTS,(IV) 741344.02/so
142922-oooos/54-10/we/ojb -14-

Page 200 of 296 ends

RIGHTSTO ALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(V)GEOTHERMAL '-HEATRIGHTSORGEOTHERMALSUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY, (VI)WATERRIGHTSANDCLAIMSORRIGHTSTOWATERAND(VII)ALLPRODUCTSDERIVED FROMANYOFTHEFOREGOING(COLLECTIVELY, "SUBSURFACERESOURCES") LOCATEDINOR

STOREANDREMOVEANYOFTHESUBSURFACERESOURCES ONORFROMTHEPROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTO WHIPSTOCKORDIRECTIONALLY DRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELS ANDSHAFTSINTO, - THROUGHORACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO BOTTOMSUCH

WHIPSTOCKED ORDIRECTTONALLY DRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR

A BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL,RETUNNEL, EQUIP,

MAINTAIN, REPAIR,DEEPENANDOPERATEANYSUCHWELLSORMINES,BUTWITHOUTTHE

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

SUBSURFACE RESOURCESTHROUGHORINTHESURFACEOFTHEPROPERTYORTHEUPPER FIVEHUNDRED'(500)FEETOFTHESUBSURFACEOFTHEPROPERTY.)
PARCELNO.5:

THATPORTIONOFTHEEAST‘/2OFSECTION29, TOWNSHIP2 SOUTH,RANGE4 EAST,SAN, I
- BERNARDINO BASEFFAFND MERIDIAN, STATEOF CALIFORNIA, ACCORDING TOTHEOFFICIAL GOVERNMENT PLATTHEREOF.

COMMENCING ATTHESOUTHEASTCORNEROFSAIDSECTION29; THENCEWESTERLYALONG 7 THESOUTHERLYFBOUNDARY OFSAIDSECTION29, A DISTANCEOF528FEETTOTHETRUE ’ POINT BEGINNING;THENCECONTINUING WESTERLYALONGTHESAIDSOUTHERLY BOUNDARYOFSAIDSECTION29,ADISTANCEOF528FEET;THENCENORTHERLYAND PARALLELWITHTHEEASTERLYBOUNDARY OFSAIDSECTION29, ADISTANCEOF2540 FEET; THENCEASTERLYANDIPARALLEL WITHTHESOUTHERLYBOUNDARYOF SAIDSECTION29, A DISTANCEOF528 FEET;THENCESOUTHERLYANDPARALLELWITHTHEEASTERLYBOUNDARY ’ OFSAIDSECTION29, A DISTANCEOF2640FEETTOTHETRUEPOINTOFBEGINNING.

I ALSOEXCEPTIN_G_ THEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC.,A COLORADO CORPORATION BYDOCUMENTRECORDEDOCTOBER13,2006,ASINSTRUMENT NO.2006-0756951OFOFFICIALRECORDSOFSAIDCOUNTY. SAIDINTERESTISFURTHER DESCRIBEDASFOLLOWS:

A.ANYANDALL(I) OILRIGHTS,(II) MINERALRIGHTS,(III) NATURALGASRIGHTS,(IV) RIGHTSTO ALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN, (V)GEOTHERMAL_ HEATRIGHTSORGEOTHERMAL SUBSTANCES THATMAYBEPRODUCEDFROMTHEPROPERTY, (VI)WATER»RIGHTSANDCLAIMSORRIGHTST0 WATERAND(VII)ALLPRODUCTSDERIVED FROMANYOFTHEFOREGOING(COLLECTIVELY, "SUBSURFACERESOURCES“)LOCATEDINOR

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

STOREANDREMOVEANYOFTHESUBSURFACERESOURCESONORFROMTHEPROPERTY, 741844.02/SD
142922-00008/5-4-10/the/cjb -15—

Page 201 of 296 ends

INCLUDINGWITHOUTLIMITATIONTHERIGHTTO WHIPSTOCKORDIRECTIONALLY DRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,

THROUGHORACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO BOTTOMSUCH

WHIPSTOCKEDOROIRECTIONALLY DRILLEDWELLS,TUNNELSANDSHAFFSWITHINOR

BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL, RETUNNEL, EQUIP,

MAINTAIN,REPAIR,DEEPENANDOPERATEANYSUCHWELLSORMINES,BUTWITHOUTTHE

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

SUBSURFACE RESOURCESTHROUGHORINTHESURFACEOFTHEPROPERTYORTHEUPPER FIVEHUNDRED(500) FEETOFTHESUBSURFACE OFTHEPROPERTY.)
PARCEL8: (APN’S:667-080-002THROUGH004AND006)
TENTATIVE(TRACT)MAP320304, BEINGASUBDIVISIONFTHEFOLLOWINGDESCRIBED PROPERTY:

PARCELNO.1
THATPORTION OFTHENORTHWESTI/4OFTHENORTHWEST‘/4OFSECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST,SANBERNARDINOBASEAND.MERIDIAN,STATEOF CALIFORNIA, ACCORDINGTOTHEOFFICIALGOVERNMENT PLATTHEREOF. A
’ BEGINNING ATTHESOUTHEASTCORNEROFTHENORTHWEST1/4OFTHENORTHWESTI/4,OF I NSAID’SEC’l'IO.N;ITHENCE WESTERLY,ONTHESOUTHLINEOFSAIDNORTHWEST V4OFTHE NORTHWEST,‘/4N 980,5FEET,TOTHEEASTLINEOFTHATCERTAIN60 FOOTROADKNOWNAS I 29 PALMSHIGHWAYEOTHENCE NORTH23° 01‘ 13"EASTFONTHENORTHLINEOFSAIDSECTION 390.71FEETTO THENORTHEASTCORNEROFTHENORTHWESTI/4OFTHENORTHWEST ‘/4OF SAIDSECTION;THENCESOUTH0° 09' 30"EAST,ONTHEEASTLINEOFTHESAID I NORTHWEST‘/4OFTHENORTHWEST‘/4OFSAIDSECTION,1380.18FEET,TO THEPOINTOF BEGINNING.

EXCEPTINC THEREPROM ONEHALFOFALLOIL,GASANDOTHERHYDRQCARBON SUBSTANCES I
NC
jlJ_NDERLYING SAIDLANDAND 1/:OFALLOTHERMINERALS, AsRESERVEDIN DEEDFROM A ‘JOSEPHR.TROTTER,HUSBANDANDWIFEFILEDFORRECORDMARCH30, 1955ASBOOK1715 PAGE572OFOFFICIALRECORDSOFSAIDCOUNTY. , TSAIDNPROPERTY IS ALSOSHOWNAs PARCEL2, 3 AND4 ONRECORDOFSURVEYONFILEIN BOOK27 PAGE65OFRECORDSOFSURVEY,RECORDSOFRIVERSIDECOUNTY,CALIFORNIA.

ALSOEXCEPTING THEREFROM ALLTHATINTERESTCONVEYEDTO DRHENERGY,INc.,A I
COLORADOCORPORATION BYDOCUMENTRECORDEDOCTOBER13, 2006, ASINSTRUMENT I NO;"2006-0756951OFOFFICIALRECORDSOFSAIDCOUNTY.sAIDINTERESTIS FURTHERA DESCRIBEDASFOLLOWS:

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

RIGHTSTOALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(V)GEOTHERMAL

HEATRIGHTSORGEOTHERMAL SUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY, I I (VI)NWATER RIGHTSANDCLAIMSOR RIGHTSTo WATERAND(VII)ALLPRODUCTSDERIVED FROMANYOFTHEFOREGOING (COLLECTFIVELY, "SUBSURFACE RESOURCES")LOCATEDINOR

UNDERTHATCERTAINREALPROPERTYSITUATEDINTHECOUNTYOFRIVERSIDE,STATEOF CALIFORNIADESCRIBEDIN EXHIBIT“A"ATTACHED" HERETOANDINCORPORATEDHEREIN (THE"PROPERTY"),TO THEEXTENTSUCHSUBSURFACE RESOURCESHAVENOTBEEN PREVIOUSLYRESERVED;AND
741844.02/SD
142922—00O08/5-4-10/tbc/cjb -16-

Page 202 of 296 ends

B.THEPERPETUALRIGHTTODRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,

STOREANDREMOVEANYOFTHESUBSURFACE RESOURCESONORFROMTHEPROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTOWHIPSTOCKORDIRECTIONALLY DRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFISINTO,

THROUGHORACROSSTHESUBSURFACEOFTHEPROPERTY, ANDTO BOTTOMSUCH

WHIPSTOCKEDOR DIRECFIONALLYDRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY,ANDTOREDRILL, RITUNNEL, EQUIP,

MAINTAIN, REPAIR,DEEPENANDOPERATEANYSUCHWELLSORMINES,BUTWITHOUTTHE

RIGHTTODRILL,MINE,EXPLORE, OPERATE, PRODUCE, STOREORREMOVEANYOFTHE

SUBSURFACERESOURCESTHROUGHORINTHESURFACEOFTHEPROPERTYORTHEUPPER FIVEHUNDRED(500) FEETOFTHESUBSURFACEOFTHEPROPERTY.)
PARCELNO. 2
THESOUTH‘/2OFTHENORTHWEST‘AOFSECTION28,TOWNSHIP2 SOUTH,RANGE4 EAST,

SANBERNARDINOBASEANDMERIDIAN, STATEOFCALIFORNIA,CCORDINGTOHE OFFICIALGOVERNMENTPLATTHEREOF.

ALSOEXCEPTINGTHEREFROMALLTHATINTERESTCONVEYEDT0 DRHENERGY,LINC., A COLORADO CORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2006, ASINSTRUMENT NO.2006-0756951OFOFFICIALRECORDSOFSAIDCOUNTY.SAIDINTERESTIS FURTHER DESCRIBEDASFOLLOWS: - A;-ANYA_Nb,ALL (T),g1,LRIGHTS,(II) MINERALRIGHTS,(111)NATURAL GASRIGHTS,(IV) A RIGHTSTo ALLOTHERHYDROCARBONS BYWHATSOEVER NAMEKNOWN,(v) GEOTHERMAL * HEATRIGHTSonGEOTHERMALSUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY, (VI)WATERRIGHTS ANDCLAIMSORRIGHTST0 WATERAND(VII)ALLPRODUCTSDERIVED FROMANYOFTHEFOREGOING(COLLECTIVELY, "SUBSURFACERESOURCES“)LOCATEDINOR

STOREANDREMOVEANYOFTHESUBSURFACERESOURCESONORFROMTHEPROPERTY,

INCLUDINGVVITHOUT LIMITATIONTHERIGHTTOWHIPSTOCKORDIRECFIONALLY DRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,

THROUGHORACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO BOTTOMSUCH

WHIPSTOCKEDORDIRECTIONALLY DRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHEZEXTERIOR LIMITSOFTHEPROPERTY,ANDTO REDRILL, RETUNNEL, EQUIP,

MAINTAIN, REPAIR,DEEPENANDOPERATEANYSUCHWELLSORMINES,BUTWITHOUTHE

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

SUBSURFACERESOURCESTHROUGHORINTHESURFACEOFTHEPROPERTYORTHEUPPER FIVEHUNDRED(S00) FEETOFTHESUBSURFACEOFTHEPROPERTY.)
PARCEL9: (APN'S:667-080-006AND007)
ITENTATIVE(TRACT) MAP32030-8,‘BEINGASUBDIVISION OFTHEFOLLOWINGDESCRIBED PROPERTY:

PARCELNo. ,1
THENORTHEASTIAOFTHENORTHWEST1/4ANDTHENORTHV2OFTHENORTHEAST T/4OF 741344.02/s13
14292240003/5-4-10/The/cjb -17-

Page 203 of 296 ends

SECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST,SANBERNARDINOBASEANDMERIDIAN, STATEOFCALIFORNIA, ACCORDINGTOTHEOFFICIALGOVERNMENTPLATTHEREOF.

EXCEPTINGTI-IEREFROMANYPORTIONLYINGWITHINTRACT32030~10ASSHOWNONFILEIN BOOK419 PAGES40THROUGH47OFMAPS,RECORDSOFRIVERSIDECOUNTY,CALIFORNIA.

ALSOEXCEPTINGTHEREFROM ALLTHATINTERESTCONVEYEDTO DRHENERGY,INC.,A COLORADOCORPORATIONBYDOCUMENT RECORDEDOCTOBER13, 2006,ASINSTRUMENT NO.2006~07569S1OFOFFICIALRECORDSOFSAIDCOUNTY.SAIDINTERESTIS FURTHER DESCRIBEDASFOLLOWS:

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

RIGHTSTO ALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(V)GEOTHERMAL

HEATRIGHTSORGEOTHERMAL SUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY, (VI)WATERRIGHTSANDCLAIMSORRIGHTSTOWATERAND(VII)ALLPRODUCTSDERIVED A FROMANYOFTHEFOREGOING (COLLECTIVELY, "SUBSURFACERESOURCES")LOCATEDINOR " UNDERTHATCERTAINREALPROPERTYSITUATEDINTHECOUNTYOFRIVERSIDE,STATEOF CALIFORNIADESCRIBEDINEXHIBIT"A“ATTACHEDHERETOANDINCORPORATEDHEREIN (THE"PROPERTY"), TOTHEEXTENTSUCHSUBSURFACERESOURCESHAVENOTBEEN PREVIOUSLYRESERVED;AND
I LB.,THE..P.ERPETUAL.RI,GHT TODRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE, STOREANDREMOVE.ANY_,0F THESUBSURFACERSOURCESONORFROMTHEPROPERTY, , INCLUDINGWITHOUT LIMITATIONTHERIGHTTO WHIPSTOCKORDIRECTIONALLY DRILLAND ;, ‘MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,

THROUGHORACROSSTHESUBSURFACE OFTHEPROPERTY,ANDTOBOTTOMSUCH A WHIPSTOCKEDORDIRECTIONALLYDRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHEEXTERIOR LIMITSOFTHEPROPERTY, ANDTOREDRILL,RETUNNEL,EQUIP,

MAINTAIN,REPAIR,DEEPENANDOPERATEANYSUCHWELLSORMINES,BUTWITHOUTTHE

RIGHTTODRILL,MINE,EXPLORE, OPERATE,PRODUCE,STOREORREMOVEANYOFTHE A

ISUBSURFACE RESOURCES THROUGHORINTHESURFACEOFTHEPROPERTYORTHEUPPER FIVEHUNDRED (S00) FEETOFTHESUBSURFACE OFTHEPROPERTY.)
PARCEL N0. 2:

I THESOUTH 1/; OFTHENORTHWEST‘AOFSECTION28, TOWNSHIP 2 SOUTH,RANGE4 EAST,

SANBERNARDINO BASEANDMERIDIAN, STATEOFCALIFORNIA,CCORDINGTOTHE OFFICIALGOVERNMENT PLATTHEREOF.
’ ALSOEXCEPTINGTHEREFROMALLTHATINTERESTCONVEYEDTODRHENERGY,INC.,A COLORADO CORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2006,ASINSTRUMENT I NO.20060756951OFOFFICIALRECORDSOFSAIDCOUNTY.SAIDINTERESTIS FURTHER DESCRIBEDAS FOLLOWS:

A.,_ANY_ ANDALL(I) OILRIGHTS,(II) MINERALRIGHTS,(III) NATURAL. GASRIGHTS,(IV) I TVRIGHTS TO’ALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(V)GEOTHERMAL

UNDERTHATCERTAINREALPROPERTYSTTUATEDINTHECOUNTYOF RIVERSIDE,STATEOF CALIFORNIADESCRIBEDINEXHIBIT"A"ATTACHEDHERETOANDINCORPORATEDHEREIN (THE"PROPERTY“),TO THEEXTENTSUCHSUBSURFACERESOURCESHAVENOTBEEN PREVIOUSLYRESERVED;AND
741344.02/sn _ 142922~00008/5-4-10/Lbc/cjb -18-

Page 204 of 296 ends

B. THEPERPETUALRIGHTTODRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE, ' STOREANDREMOVEANYOFTHESUBSURFACERESOURCES ONORFROMTHEPROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTOWHIPSTOCKORDIRECTIONALLY DRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,

THROUGHORACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTOBOTTOMSUCH

WHIPSTOCKEDORDIRECTIONALLY DRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY, ANDTOREDRILL,RETUNNEL, EQUIP,

MAINTAIN, REPAIR,DEEPENANDOPERATEANYSUCHWELLSORMINES,BUTWITHOUTTHE

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

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

PARCELNO.1
THATPORTIONOFTHENORTHWEST‘/4OFTHENORTHWEST‘AOFSECTION28,TOWNSHIP2 SOUTH,RANGE4 EAST,SANBERNARDINOBASEANDMERIDIAN, STATEOFCALIFORNIA, ACCORDINGTOTHEOFFICIALGOVERNMENT PLATTHEREOF. I
U
‘ BFRGINNINGFFAT THESOUTHEAST CORNEROFTHENORTHWEST‘AOFTHENORTHWEST I/4,OF SAIDSDECTION; THENCEWESTERLY,ONTHESOUTHLINEOFSAIDNORTHWEST‘/4OFTHE ‘NORTHWEST ‘/4980.5FEET,TOTHEEASTLINEOFTHATCERTAIN60 FOOTROADKNOWNAS 29PALMSHIGHWAYITHENCE NORTH23° 01' 13"EASTONTHENORTHLINEOFSAIDSECTION 390.71 FEETTOTHENORTHEASTCORNEROFTHENORTHWEST‘/4OFTHENORTHWEST‘/4OF SAIDSECTION;THENCESOUTH0° 09' 30"EAST,ONTHEEASTLINEOFTHESAID NORTHWEST‘/4OFTHENORTHWEST‘AOFSAIDSECTION,1380.18FE|:"l',FTOTHEPOINTOF BEGINNING. A
_EXCEPTING’ THEREFROM ONEHALFOFALLOIL,GASANDOTHERHYDROCARBON SUBSTANCES A UNDERLYING, SAIDLANDAND1/2OFALLOTHERMINERALS, As RESERVEDINDEEDFROM JOSEPHR.TROTTER,HUSBANDANDWIFEFILEDFORRECORDMARCH30, 1955ASBOOK1715 PAGE572OFOFFICIALRECORDSOFSAIDCOUNTY.

ALSOEXCEPTTNG THEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY, INC.,A COLORADOCORPORATIONBYDOCUMENTRECORDEDOCTOBER13,2005, ASINSTRUMENT. ‘No.2005-0755951OFOFFICIALRECORDSor SAIDCOUNTY.SAIDINTEREST IS FURTHER DESCRIBEDASFOLLOWS:

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

RIGHTSTO ALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN, (V)GEOTHERMAL

HEATRIGHTSORGEOTHERMAL SUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY, ’ A (VI)WATERRIGHTSANDCLAIMSORRIGHTSTO WATERAND(VII)ALLPRODUCTSDERIVED "FROMANYOFTHEFOREGOING(COLLECFIVELY, "SUBSURFACERESOURCES")LOCATEDINOR (UNDER THATCERTAINREALPROPERTYSITUATEDINTHECOUNTYOF RIVERSIDE,STATEOF CALIFORNIADESCRIBEDINEXHIBIT"A"ATTACHEDHERETOANDINCORPORATEDHEREIN (THE"PROPERTY"), TOTHEEXTENTSUCHSUBSURFACERESOURCESHAVENOTBEEN PREVIOUSLYRESERVED;AND
741844.02/SD
142922-00008/5-4-10ltbclcjb -19-

Page 205 of 296 ends

B.THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANOOPERATEFORANDPRODUCE,

STOREANDREMOVEANYOFTHESURSURPACERESOURCESONORFROMTHEPROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTOWHIPSTOCKORDIRECTIONALLY DRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY, WELLS,TUNNELSANDSHAPTSINTO,

THROUGHORACROSSTHESUBSURFACE OFTHEPROPERTY,ANDTO BOTTOMSUCH WHIPSTOCKEDORDIRECTIONALLY DRILLEDWELLS,TUNNELSANDSHAFTSwITHINOR BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY,ANDTo REDRILL, RETUNNEL, EQUIP, MAINTAIN, -REPAIR, DEEPENANDOPERATEANYSUCHwELLSORMINES,BUTWITHOUTTHE

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

SUBSURPACERESOURCESTHROUGHORINTHESURFACEOETHEPROPERTYORTHEUPPER FIVEHUNDRED(500) FEETOFTHESUBSURFACEOFTHEPROPERTY.)
SAIDPROPERTYISALSOSHOWNASPARCEL2, 3 AND4 ONRECORDOFSURVEYONFILEIN BOOK27 PAGE65 OF RECORDSOFSURVEY,RECORDSOFRIVERSIDECOUNTY,CALIFORNIA.

PARCELNO. 2
THENORTHEAST‘AOFTHENORTHWEST‘/4ANDTHENORTH‘/2OFTHENORTHEASTV4OF SECTION28,TOWNSHIP 2 SOUTH,RANGE4 EAST,SANBERNARDINOBASEANDMERIDIAN, STATEOFCALIFORNIA, ACCORDINGTOTHEOFFICIALGOVERNMENTPLATTHEREOF.

EXCEPTINGHEREEROM ANYPORTIONLYINGWIIHINTRACT‘32030-10ASsHOwNONFILEIN I
A BOOK«T19PAGES40THROUGH47 OFMAPS,RECORDSOFRIVERSIDECOUNTY,CALIFORNIA. "AISOEXCEPTING_LTHEREFROM ALLTHATINTERESTCONVEYEDTO ORHENERGY,INC, A COLORADO CORPORATION BYDOCUMENTRECORDEDOCTOBER13, 2006,ASINSTRUMENT N0. 200641756951OFOFFICIALRECORDSOF SAIDCOUNTY.SAIDINTERESTIS FURTHER DESCRIBEDASFOLLOWS:

A.ANYANDALL(I),0ILRIGHTS,(II) MINERALRIGHTS,(III) NATURALGASRIGHTS,(IV) I RIGHTSTOALI.OTHERHYDROCARBONS BYWHATSOEVER NAMEKNOWN,(V)GEOTHVERMAL

HEATPRIGHTS ORCEOTHERMAL SUBSTANCES THATMAYBEPRODUCEDFROMTHEPROPERTY, (VI)WATERRIGHTSANDCLAIMSORRIGHTSTOWATERAND(VII)ALLPRODUCTSDERIVED FROMANYOFTHEFOREGOING(COLLECTIVELY, "SUBSURFACE RESOURCES")LOCATEDINOR

I UNDERTHATCERTAINREALPROPERTYSITUATEDINTHECOUNTYOFRIVERSIDE,STATEOF CALIFORNIADESCRIBED INEXHIBIT"A"ATTACHEDHERETOANDINCORPORATED HEREIN ' (THE"PROPERTY“), TOTHEEXTENTSUCHSUBSURFACE RESOURCESHAVENOTBEEN PREVIOUSLYRESERVED;AND '
B.THEPERPETUAL RIGHTTODRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,

I STOREANDREMOVE ANYOFTHESUBSURFACERESOURCES ONORFROMTHEPROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTOWHIPSTOCKORDIRECTIONALLY DRILLAND

I(MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFFSINTO,

THROUGHORACROSSTHESUBSURFACE OFTHEPROPERTY,ANDTOBOTTOMSUCH,

LWHIPSTOCKEDORDIRECFIONALLYDRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR ?"‘8E,YOND THEEXTERIORVLIMITS OFTHEPROPERTY,ANDTOREDRILL,RETUNNEL, EQUIP,

MAINTAIN, REPAIR,OEEPENANDOPERATEANYSUCHWELLSORMINES,SUTWITHOUTHE

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

SUBSURFACERESOURCESTHROUGHORINTHESURFACEOFTHEPROPERTYORTHEUPPER FIVEHUNDRED(500)FEETOFTHESUBSURFACEOFTHEPROPERTY.)
PARCELNO. 3
741844.02/SD
142922-00008/5-4«10/tbc/cjb -20~

Page 206 of 296 ends

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

SANBERNARDINOBASEANDMERIDIAN, STATEOFCALIFORNIA,CCORDING TOTHE OFFICIALGOVERNMENTPLATTHEREOF.

ALSOEXCEPTING THEREFROMALLTHATINTERESTCONVEYEED T0 DRHENERGY,INC.,A COLORADOCORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2006, ASINSTRUMENT NO.2006-0756951OF OFFICIALRECORDSOFSAIDCOUNTY.SAIDINTERESTIS FURTHER DESCRIBEDASFOLLOWS:

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

RIGHTSTOALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(V)GEOTHERMAL

STOREANDREMOVEANYOFTHESUBSURFACERESOURCES ONORFROMTHEPROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTOWHIPSTOCKORDIRECIIONALLY DRILLAND ; MINE,*I=RoMLANDS OTHERTHANTHEPROPERTY,WELLS, TUNNELSANDSHAFISINTO, ‘THROUGH ORACROSSTHESUBSURFACE or-*THEPROPERTY,ANDTo BOTTOMSUCH ’WHIPSTOCKED ORDIRECTFIONALLY DRILLEDWELLS,TUNNELSANDsHAr-TsWITHINOR BEYONDITHE EXTRIORLIMITSOFTHEPROPERTY,ANDTO REDRILL,‘ RETUNNEL, EQUIP,

TEMAINTAIN, REPAIR, DEEPENANDOPERATEANYSUCHWELLSORMINES,BUTWITHOUTHE

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

SUBSURFACERESOURCES THROUGHORINTHESURFACEOFTHEPROPERTYORTHEUPPER FIVEHUNDRED(500) FEETOFTHESUBSURFACEOFTHEPROPERTY.
741844.02/SD
I42922-0D003/5—4- I0/the/cjb ~21-

Page 207 of 296 ends

EXHIBIT “B”
VILLAGE 5 LEGAL DESCRIPTION
Real property in the City of Desert Hot Springs, County of Riverside,State of California,described as follows:

TENTATIVE(TRACT)MAP32030—5,BEINGA SUBDIVISIONOFTHEFOLLOWING DESCRIBEDPROPERTY:

PARCELNO. 1
I THESOUTHWEST‘/4 OF SECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST,SAN

BERNARDINOBASEANDMERIDIAN,STATE OFCALIFORNIA,CCORDINGTO THE OFFICIAL GOVERNMENTPLATTHEREOF.

EXCEPTINGTHEREFROMTHEEAST‘/2OF THESOUTHWEST‘/4.

TALSOLEXCEPTINGTHEREFROMTHEEAST1/2OFTHE NORTHEAST1/4OF THE NORTHWEST ‘/4 OFTHESOUTHWEST‘/4OF SAIDSECTION.

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

ALSOLEXCEPTINGTHEREFROMANYPORTIONLYINGWITHINTRACT32030-1 AS SHOWNON ~ FILEIN:BOOK_404,PAGES 67 THROUGH75, OF MAPS,RECORDSOF RIVERSIDECOUNTY, CALIFORNIA.
,ALSO EXCEPTINGTHEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC.,A COLORADOCORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2006, AS INSTRUMENT NO._2006-0756951 OF OFFICIALRECORDSOF SAID COUNTY.SAIDINTERESTIS FURTHER DESCRIBEDASFOLLOWS:

A. ANYANDALL(I) OIL RIGHTS,(II) MINERALRIGHTS,(III) NATURALGASRIGHTS,(IV) RIGHTSTo ALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(V) GEOTHERMAL

HEATRIGHTSORGEOTHERMALSUBSTANCESTHAT MAYBEPRODUCEDFROMTHE

PROPERTY,(VI) WATERRIGHTSANDCLAIMSOR RIGHTSTO WATERAND(VII) ALL PRODUCTSDERIVEDFROMANYOFTHEFOREGOING(COLLECTIVELY, "SUBSURFACE RESOURCES")LOCATEDIN OR UNDERTHATCERTAINREALPROPERTYSITUATEDIN THE COUNTYOFRIVERSIDE,STATE OF CALIFORNIADESCRIBEDIN EXHIBIT"A"ATTACHED HERETOANDINCORPORATEDHEREIN(THE"PROPERTY"),TOTHEEXTENTSUCH SUBSURFACERESOURCESHAVENOTBEENPREVIOUSLYRESERVED;AND
B. THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,

STOREANDREMOVEANYOFTHE SUBSURFACERESOURCESON OR FROMTHE PROPERTY,

INCLUDINGWITHOUTLIMITATIONTHE RIGHTTO WHIPSTOCKOR DIRECTIONALLYDRILL

ANDMINE,FROMLANDSOTHERTHANTHE PROPERTY,WELLS,TUNNELSANDSHAFTSINTO,

THROUGHORACROSSTHESUBSURFACEOF THEPROPERTY,ANDTO BOTTOMSUCH

WHIPSTOCKEDOR DIRECTIONALLYDRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHEEXTERIORLIMITSOFTHE PROPERTY,ANDTO REDRILL,RETUNNEL,EQUIP,

MAINTAIN,REPAIR,DEEPENANDOPERATEANYSUCHWELLSOR MINES,BUTWITHOUTTHE First Amendment to Lien Contract
9

Page 208 of 296 ends

THEEASTERLYBOUNDARYOFSAIDSECTION,A DISTANCEOF 577.0 FEET;THENCEEASTERLY ANDPARALLELWITHTHESOUTHBOUNDARYOF SAID SECTIONA DISTANCEOF 528.0 FEET;

THENCESOUTHERLYALONGTHE EASTERLYBOUNDARYOF SAID SECTION,A DISTANCEOF 577.0 FEETTO THETRUEPOINTOFBEGINNING.

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

RIGHTSTO ALLOTHERHYDROCARBONSBYWHATSOEVERNAMEKNOWN,(V) GEOTHERMAL

HEATRIGHTSORGEOTHERMALSUBSTANCESTHATMAYBEPRODUCEDFROMTHE

PROPERTY,(VI)WATERRIGHTSANDCLAIMSOR RIGHTSTO WATERAND(VII) ALL PRODUCTSDERIVEDFROMANYOF THEFOREGOING(COLLECTIVELY, "SUBSURFACE RESOURCES")LOCATEDIN OR UNDERTHATCERTAINREALPROPERTYSITUATEDIN THE COUNTYOF RIVERSIDE, STATE OF CALIFORNIA DESCRIBEDIN EXHIBIT"A"ATTACHED HERETOANDINCORPORATEDHEREIN(THE"PROPERTY"),TOTHEEXTENTSUCH SUBSURFACERESOURCESHAVENOT BEENPREVIOUSLYRESERVED;AND
" B..THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFOR ANDPRODUCE,

STOREANDREMOVEANYOFTHE SUBSURFACERESOURCESON OR FROMTHEPROPERTY,

INCLUDINGWITHOUTLIMITATIONTHE RIGHTTO WHIPSTOCKOR DIRECTIONALLYDRILL

ANDMINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAETSINTO,

THROUGHOR ACROSSTHESUBSURFACEOF THEPROPERTY,ANDTO BOTTOMSUCH

WHIPSTOCKEDOR DIRECTIONALLYDRILLEDWELLS,TUNNELSANDSHAETSWITHINOR

BEYONDTHEEXTERIORLIMITSOF THEPROPERTY,ANDTO REDRILL,RETUNNEL,EQUIP,

MAINTAIN,REPAIR,DEEPENANDOPERATEANYSUCHWELLSOR MINES,BUTWITHOUTTHE

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

SUBSURFACERESOURCESTHROUGHOR IN THESURFACEOF THE PROPERTYORTHEUPPER FIVEHUNDRED(500) FEETOF THE SUBSURFACEOF THEPROPERTY.)
PARCELNO. 5:

THATPORTIONOFTHEEAST‘/2OF SECTION29, TOWNSHIP2 SOUTH,RANGE4 EAST,

SANBERNARDINOBASEAND MERIDIAN,STATE OF CALIFORNIA, ACCORDINGTO THE

OFFICIALGOVERNMENT PLATTHEREOF
COMMENCINGAT THESOUTHEASTCORNEROF SAIDSECTION29; THENCENORTHERLY ALONGTHEEASTERLYBOUNDARYOF SAIDSECTION29, A DISTANCEOF 329 FEETTO THE TRUEPOINTOF BEGINNING; THENCEWESTERLYANDPARALLELWITHSOUTHERLY BOUNDARYOF SAIDSECTION29, A DISTANCEOF 528 FEET;THENCENORTHERLYAND PARALLELWITHTHEEASTERLYBOUNDARYOF SAIDSECTION29, A DISTANCEOF 577 FEET; THENCEEASTERLYANDPARALLELWITHTHESOUTHERLYBOUNDARYOF SAID SECTION29, A DISTANCEOF 528 FEET;THENCE
SOUTHERLYANDALONGTHEEASTERLYBOUNDARYOF SAIDSECTION29, A DISTANCEOF 577FEETTO THETRUEPOINTOF BEGINNING.

EXCEPTINGTHEREFROMTHE NORTH165 FEETTHEREOF.

ALSOEXCEPTINGTHEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC.,A COLORADOCORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2006, AS INSTRUMENT NO. 2006-0756951.0F OFFICIALRECORDSOF SAIDCOUNTY.SAIDINTERESTIS FURTHER First Amendmentto Lien Contract
12

Page 209 of 296 ends

DESCRIBEDASFOLLOWS:

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

HEATRIGHTSORGEOTHERMALSUBSTANCESTHATMAYBEPRODUCEDFROMTHE

PROPERTY,(VI)WATERRIGHTSANDCLAIMSOR RIGHTSTO WATERAND(VII) ALL PRODUCTSDERIVEDFROMANYOFTHEFOREGOING(COLLECTIVELY,"SUBSURFACE RESOURCES")LOCATEDIN OR UNDERTHATCERTAINREALPROPERTYSITUATEDIN THE COUNTYOF RIVERSIDE,STATE OF CALIFORNIADESCRIBEDIN EXHIBIT"A"ATTACHED HERETOANDINCORPORATEDHEREIN(THE"PROPERTY"),TOTHE EXTENTSUCH SUBSURFACERESOURCESHAVENOT BEENPREVIOUSLYRESERVED;AND
B.THE PERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,

STOREANDREMOVEANYOFTHESUBSURFACERESOURCESON OR FROMTHE PROPERTY,

INCLUDINGWITHOUTLIMITATIONTHE RIGHTTO WHIPSTOCKOR DIRECTIONALLYDRILL

ANDMINE,FROMFLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFISINTO,

THROUGHOR ACROSSTHESUBSURFACEOF THEPROPERTY,ANDTO BOTTOMSUCH — WHIPSTOCKEDOR DIRECTIONALLYDRILLEDWELLS,TUNNELSANDSHAI-TSWITHINOR

BEYONDTHE EXTERIORLIMITSOFTHE PROPERTY,ANDTO REDRILL,REFUNNEL,EQUIP, . MAINTAIN,REPAIR,DEEPENANDOPERATEANYSUCHWELLSOR MINES,BUTWITHOUTTHE ‘ 7 RIGHTTO’DRILL',‘MINE, EXPLORE,OPERATE,PRODUCE,STOREOR REMOVEANYOF THE A " I "SUBSURFACE RESOURCESTHROUGHOR IN THESURFACEOFTHE PROPERTYORTHEUPPER FIVE, HUNDRED(500) FEE" OF THESUBSURFACEOFTHEPROPERTY.) PARCELNO. 6:

THATPORTIONOF THE EAST‘/2 OF SECTION29, TOWNSHIP2 SOUTH,RANGE4 EAST,

SANBERNARDINOBASEAND MERIDIAN,STATE OF CALIFORNIA,ACCORDINGTO THE OFFICIALGOVERNMENTPLATTHEREOF. ’
COMMENCINGAT THESOUTHEASTCORNEROF SAIDSECTION29; THENCEWESTERLYALONG * THESOUTHERLYBOUNDARYOF SAIDSECTION29, A DISTANCEOF 528 FEETTO THETRUE POINTOFBEGINNING;THENCECONTINUINGWESTERLYALONGTHESAIDSOUTHERLY '6 BOUNDARYOF SAIDSECTION29, A DISTANCEOF 528 FE|:T|';THENCENORTHERLYAND ’ "PARALLELWITHTHE EASTERLYBOUNDARYOF SAIDSECTION29, A DISTANCEOF 2640 FEET; ’ THENCEEASTERLYANDPARALLELWITHTHE SOUTHERLYBOUNDARYOF SAIDSECTION29, A DISTANCEOF528 FEl:T|';THENCESOUTHERLYANDPARALLELWITHTHEEASTERLY BOUNDARYOF SAIDSECTION29, A DISTANCEOF 2640 FEETTO THETRUEPOINTOF BEGINNING. *
ALSOEXCEPTINGTHEREFROMALLTHAT INTERESTCONVEYEDTO DRHENERGY,INC., A ICOLORADOIICORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2006, AS INSTRUMENT "NO.2006-0756951 OF OFFICIALRECORDSOF SAIDCOUNTY.SAIDINTERESTIS FURTHER DESCRIBEDASFOLLOWS:

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

RIGHTSTO ALLOTHERHYDROCARBONSBYWHATSOEVERNAMEKNOWN,(V) GEOTHERMAL

HEATRIGHTSORGEOTHERMALSUBSTANCESTHATMAYBEPRODUCEDFROMTHE

PROPERTY,(VI)WATERRIGHTSANDCLAIMSOR RIGHTSTO WATERAND(VII) ALL PRODUCTSDERIVEDFROMANYOF THEFOREGOING(COLLECTIVELY,"SUBSURFACE RESOURCES")LOCATEDIN OR UNDERTHATCERTAINREALPROPERTYSITUATEDIN THE COUNTYOF RIVERSIDE,STATE OF CALIFORNIADESCRIBEDIN EXHIBIT"A"ATTACHED HERETOANDINCORPORATEDHEREIN(THE"PROPERTY"),TOTHEEXTENTSUCH First Amendmentto Lien Contract
13

Page 210 of 296 ends

SUBSURFACERESOURCESHAVENOTBEENPREVIOUSLYRESERVED;AND
B.THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,

STOREANDREMOVEANYOFTHE SUBSURFACERESOURCESON OR FROMTHEPROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTO WHIPSTOCKOR DIRECTIONALLYDRILL

ANDMINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO, THROUGHOR ACROSSTHESUBSURFACEOF THEPROPERTY,ANDTO BO'|'|'OM SUCH

WHIPSTOCKEDOR DIRECTIONALLYDRILLED WELLS,TUNNELSANDSHAFTSWITHINOR

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

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

SUBSURFACERESOURCESTHROUGHOR IN THESURFACEOFTHEPROPERTYORTHEUPPER FIVEHUNDRED(500) FEETOFTHESUBSURFACEOF THEPROPERTY.)
First Amendmentto Lien Contract
14

Page 211 of 296 ends

EXHIBIT C

PARTIAL RELEASE OF LIEN AGREEMENT

SEE ATTACHED
First Amendmentto Lien Contract
15

Page 212 of 296 ends

RECORDING REQUESTEDBY AND WHEN
RECORDEDRETURN TO:

City of Desert Hot Springs
Attn: City Clerk
11999 Palm Drive
Desert Hot Springs, California 92240
SPACE ABOVE LINE FOR RECORDER’S USE ONLY

RELEASE OF LIEN CONTRACT
— THIS RELEASE OF LIEN CONTRACT(this “Release”) is dated 2023.

IWHEREAS, the City of -DesertcHot Springs, a municipal corporation, in the County of inRiverside;StateiiofCaliforniaghereinaftér referred to as the "City,” and SkyborneVentures, LLC, a California limited liability company, hereinafter referred to as "Developer" had previously entered into that certain LiensContract dated March 31st, 2010 (“Contract”) and recorded in the Official Records of Riverside County ‘as Document Number 2010-0236266, which serves as security for the City in connection with Deve1oper’s constructionof the Improvements in 6 connection with development of Skyborne DevelopmentTract Map No. 32030; NOWTHEREFORE, City and Developer hereby terminate and releasethe Contract as to — that certain real property more particularly identified on Exhibit “A” attached hereto and incorporatedherein by this reference.
[SIGNATURES ON FOLLOWING PAGE[S]]
First Amendment to Lien Contract
16

Page 213 of 296 ends

IN WITNESS WHEREOF, the parties have executedthis Releaseas of the date first above written.

CITY OF DESERT HOT SPRINGS SKYBORNE VENTURES, LLC, a
California limited liability company
BY: LANSING STRATEGIC
MANAGEMENT, LLC a California
limited liability company
Doria Wilms, Interim City Manager
BY: JK-RIVERWOODS, LLC, A

CALIFORNIA LIMITED
ATTEST: LIABILITY COMPANY

ITS GENERAL PARTNER
BY:

Jerryl Soriano,City Clerk A JAMES M. KOZAK
_,_. . -_,_ ITS:SOLEMEMBER
APPROVED AS TO FORM:
‘ Jennifer Mizrahi,City Attorney
First Amendmentto Lien Contract
17

Page 214 of 296 ends

A notary public or other officer completing this certificateverifies only the identity of the individualwho signed the documentto which this certificate is attached,and not the truthfulness,accuracy, or validity of that document.

STATE OF CALIFORNIA )
) ss.

COUNTY OF )
Qri , 202 before me, , a Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name is/are subscribedto the within instrumentand acknowledged to me that he/she/they executedthe same in his/her/theirauthorizedcapacity(ies), and that by his/her/theirsignature(s) on the instrument the person, or the entity upon behalf of which the person(s) acted, executed the instrument. 7 7 I certify under PENALTY OF PERJURY under the laws of the State of Californiathat the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature (Seal)

Page 215 of 296 ends

EXHIBIT “A”
TO

RELEASE OF MEMORANDUMOF AGREEMENT
[LEGAL DESCRIPTIONOF PROPERTY]
Real property in the City of Desert Hot Springs, County of Riverside,State of California,describedas 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) 1 ' LOTS1 THROUGH286 ANDLEITEREDELOTS"O"THROUGH"Z"AND"AA"OF TRACTNO. 32030-3AS “f”SHOWNiON BYiMAP"ONFILEIN‘BOGKC4f1'9PAGES29 THROUGH39 OF MAPS,RECORDSOFRIVERSIDE COUNTY,CALIFORNIA. ‘
_
N PARCEL4: (APN'S: 667-340-0011.THROUGH048 AND051; 667-350-001 THROUGH074 AND078 I S ’
'}"7-—2 THROUGH080; AND667-360-001 THROUGH060 AND064)
LOTS1THROUGH182, INCLUSIVE,FAND§LE'|"|'ERED LOTS"H"THROUGH"S",INCLUSIVE,OFTRACTNO. 32030-10;AS SHOWNBYEMAP ON F-ILE‘.INBOOK419 PAGES40 THROUGH47 OF MAPS,RECORDSOF RIVERSIDECOUNTY,CALIFORNIA. A
PARCEL5: (APN'S: 667-080-006,667-100-029,031 AND038)
’iTENTATIVEE(TRACT) MAP"-3-2030-4, BEINGA SUBDIVISIONOFTHEFOLLOWINGDESCRIBED PROPERTY:

PARCELNO. 1:

A THESOUTH1/>2OF__THE—NORTHWEST 3/4OF SECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST,-SAN

BERNARDINOBASEANDMERIDIAN,STATE OF CALIFORNIA, ACCORDINGTO THEOFFICIALGOVERNMENT PLATTHEREOF.

A. ANYAND’ALL(I) OIL RIGHTS,(II) MINERALRIGHTS,(III) NATURALGASRIGHTS,(IV) RIGHTS

Page 216 of 296 ends

TO ALLOTHERHYDROCARBONSBYWHATSOEVERNAMEKNOWN,(V) GEOTHERMALHEATRIGHTSOR

GEOTHERMALSUBSTANCESTHATMAYBEPRODUCEDFROMTHE PROPERTY,(VI)WATERRIGHTSAND

CLAIMSOR RIGHTSTO WATERAND(VII) ALLPRODUCTSDERIVEDFROMANYOFTHEFOREGOING (COLLECTIVELY,"SUBSURFACERESOURCES")LOCATEDIN OR UNDERTHATCERTAINREALPROPERTY SITUATED IN THE COUNTYOF RIVERSIDE,STATE OF CALIFORNIADESCRIBEDIN EXHIBIT"A"ATTACHED HERETOANDINCORPORATEDHEREIN(THE"PROPERTY"),TOTHEEXTENTSUCHSUBSURFACE RESOURCESHAVENOTBEENPREVIOUSLYRESERVED;AND
B. THE PERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,STORE

ANDREMOVEANYOFTHESUBSURFACERESOURCESON OR FROMTHE PROPERTY,INCLUDING

WITHOUTLIMITATIONTHERIGHTTO WHIPSTOCKOR DIRECTIONALLYDRILLANDMINE,FROM

LANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,THROUGHOR ACROSS

THESUBSURFACEOF THE PROPERTY,ANDTO BOTTOMSUCHWHIPSTOCKEDOR DIRECTIONALLY DRILLEDWELLS,TUNNELSANDSHAI-_|'S WITHINOR BEYONDTHEEXTERIORLIMITSOF THE

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

SUCHWELLSOR MINES,BUTWITHOUTTHE RIGHTTO DRILL,MINE,EXPLORE,OPERATE, 1 PRODUCE,STOREOR REMOVEANYOFTHESUBSURFACERESOURCESTHROUGHOR IN THE SURFACEOF THEPROPERTYOR THE UPPERFIvE HUNDRED(500) FEETOFTHESUBSURFACEOF THEPROPERTY.) 2
PARCELNO. 2:

THESOUTHWEST‘/4OF SECTION28,:.TOWNSHIP2 SOUTH,RANGE4 EAST,SANBERNARDINOBASE ~ I
A
EXCEPTINGTHEREFROMTHE EAST1/2OFTHESOUTHWEST1/4.

ALSOEXCEPTINGTHEREFROMTHEEAST‘/2OF THENORTHEAST1/4OFTHE NORTHWEST1/4,OFFHE SOUTHWEST1/4OF SAID SECTION.

ALSOEXCEPTINGTHEREFROMTHEISOUTHERLY40 FEETCONVEYEDTO THECOUNTYOF RIVERSIDEBY I DEEDFILEDFORRECORD‘JULY26,1949—ASINSTRUMENTNO. 3081 OF OFFICIALRECORDSOF RIVERSIDE’ 3 COUNTY,CALIFORNIA.

I
’ EXCEPTINGTHEREFROM,_ANYPORTIONLYINGWITHINTRACT32030-1 AS SHOWNON FILEINBOOK _ 404 PAGES.67THROUGH75 OF MAPS,RECORDSOF RIVERSIDECOUNTY,CALIFORNIA.

ALSOEXCEPTINGTHEREFROMALLTHATINTEREST CONVEYEDTO DRHENERGY,INC.,A COLORADO CORPORATION BYDOCUMENTRECORDEDOCTOBER13, 2006, AS INSTRUMENTNO.2006-0756951 OF_ OFFICIALRECORDSOF SAIDCOUNTY.SAIDINTERESTIS FURTHERDESCRIBEDASFOLLOWS:

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

ALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(V) GEOTHERMALHEATRIGHTSOR GEOTHERMALSUBSTANCESTHAT‘MAYBEPRODUCEDFROMTHEPROPERTY,(VI) WATERRIGHTS A ANDCLAIMSOR RIGHTSTO WATERAND(VII) ALLPRODUCTSDERIVEDFROMANYOFTHE A FOREGOING(COLLECTIVELY,"SUBSURFACERESOURCES")LOCATEDIN OR UNDERTHATCERTAIN

REALPROPERTYSITUATEDIN THECOUNTYOF RIVERSIDE,STATE OF CALIFORNIADESCRIBEDIN EXHIBIT"A"ATTACHEDHERETOANDINCORPORATEDHEREIN(THE"PROPERTY"),TOTHE EXTENTSUCHSUBSURFACERESOURCESHAVENOT BEENPREVIOUSLYRESERVED;AND B. THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,STORE

ANDREMOVEANYOFTHESUBSURFACERESOURCESON OR FROMTHEPROPERTY,INCLUDING

WITHOUTLIMITATIONTHERIGHTTO WHIPSTOCKOR DIRECTIONALLYDRILLANDMINE,FROM

LANDSOTHERTHANTHE PROPERTY,WELLS,TUNNELSANDSHAI-TSINTO,THROUGHORACROSS

THESUBSURFACEOF THE PROPERTY,ANDTO BOTTOMSUCHWHIPSTOCKEDOR DIRECTIONALLY

DRILLEDWELLS,TUNNELSANDSHAFFSWITHINOR BEYONDTHE EXTERIORLIMITSOFTHE

PROPERTY,ANDTO REDRILL,RETUNNEL,EQUIP,MAINTAIN,REPAIR,DEEPENANDOPERATEANY 2 ANDMERIDIAN,fSTATEOFCALIFORNIA,ACCORDINGTO THE OFFICIALGOVERNMENTPLA'l'|'HEREOF._~I » I

Page 217 of 296 ends

SUCHWELLSOR MINES,BUTWITHOUTTHERIGHTTO DRILL,MINE,EXPLORE, OPERATE,PRODUCE,

STOREOR REMOVEANYOF THE SUBSURFACERESOURCESTHROUGHOR IN THESURFACEOF THE PROPERTYORTHEUPPERFIVEHUNDRED(500) FEETOF THESUBSURFACEOFTHEPROPERTY.) PARCELNO. 3:

THE EAST‘/2OF THESOUTHWEST‘/4,ANDTHE EAST1/2OFTHE NORTHEAST‘/4 OFTHENORTHWEST 1/4OFTHE SOUTHWEST‘/4 OF SECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST,SANBERNARDINO

BASEANDMERIDIAN,STATE OF CALIFORNIA, ACCORDINGTO THEOFFICIALGOVERNMENT PLAT THEREOF.

EXCEPTINGTHEREFROMTHESOUTHERLY40 FEETASCONVEYEDTO THECOUNTYOF RIVERSIDE,BY DEEDRECORDEDJULY26, 1949 AS INSTRUMENTNO. 3081 OF OFFICIALRECORDSOFRIVERSIDE COUNTY,CALIFORNIA.

EXCEPTINGTHEREFROMANYPORTIONLYINGWITHINTRACT32030-1 AS SHOWNON FILEINBOOK 404. PAGES167THROUGH75 OF MAPS,RECORDSOF RIVERSIDECOUNTY,CALIFORNIA.

ALSOEXCEPTINGTHEREFROMANYPORTIONLYINGWITHINTRACT32030-3 AS SHOWNON FILEIN BOOK419PAGES29 THROUGH39 OF MAPS,RECORDSOF RIVERSIDECOUNTY,CALIFORNIA.

I ALSOEXCEPTINGTHEREFROMALL-THATINTERESTCONVEYEDTO DRHENERGY,INC.,A COLORADO CORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2006, AS INSTRUMENTNO. 2006-0756951OF ~ -}OFFICIAL'RECORDS1OF SAIDCOUNTY.SAIDINTERESTIS FURTHERDESCRIBEDASFOLLOWS: — T’:”:"; 1‘? A.ANYANDALL(I) OIL RIGHTS,(II) MINERALRIGHTS,(III) NATURALGASRIGHTS,(IV) RIGHTSTO.

ALLOTHERHYDROCARBONSBYWHATSOEVERNAMEKNOWN,(V) GEOTHERMALHEATRIGHTSOR GEOTHERMALSUBSTANCESTHAT MAYBEPRODUCEDFROMTHEPROPERTY,(VI) WATERRIGHTS* ANDCLAIMSOR RIGHTSTO WATERAND(VII) ALLPRODUCTSDERIVEDFROMANYOF THE F g I " FOREGOING(COLLECTIVELY, "SUBSURFACERESOURCES")LOCATEDIN OR UNDERTHATCERTAIN REALPROPERTYSITUATEDIN-THECOUNTYOF RIVERSIDE,STATE OF CALIFORNIADESCRIBEDIN * A .EXHIBITI'A"- ATTACHEDHERETOANDINCORPORATEDHEREIN(THE"PROPERTY"),TOTHE ‘ ' I I _ EXTENTSUCHSUBSURFACERESOURCESHAVENOTBEENPREVIOUSLYRESERVED;AND ;B. THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,STORE’’ ‘F
I ” ’ T-ANDREMOVEANYOFTATHEISUBSURFACE RESOURCESON OR FROMTHE PROPERTY,INCLUDING1 WITHOUTLIMITATIONTHERIGHTTO WHIPSTOCKOR DIRECTIONALLYDRILLANDMINE,FROM

LANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,THROUGHOR ACROSS THESUBSURFACEOF THE PROPERTY,ANDTO BOTTOMSUCHWHIPSTOCKEDOR DIRECTIONALLY ’ DRILLEDWELLS,TUNNELSANDSHAFFSWITHINOR BEYONDTHEEXTERIORLIMITSOF THE C PROPERTY,ANDTO REDRILL,RETUNNEL, EQUIP, MAINTAIN,REPAIR,DEEPENANDOPERATEANY ” "SUCHWELLSOR MINES,BUTWITHOUTTHE RIGHTTO DRILL,MINE,EXPLORE,OPERATE,

PRODUCE,STORE OR REMOVEANYOF THESUBSURFACERESOURCESTHROUGHOR IN THE * SURFACEOF THEPROPERTYAORTHEUPPERFIVEHUNDRED(500) FEETOFTHE SUBSURFACEOF THEPROPERTY.)

Page 218 of 296 ends

PARCEL7: (APN'S: 667-080-006; 667-100-029, 031 AND038; 667-120-051, 052 AND024) TENTATIVE(TRACT)MAP32030-6, BEINGA SUBDIVISIONOFTHE FOLLOWINGDESCRIBED PROPERTY:

PARCELNO. 1:

THESOUTH1/2OF THE NORTHWEST1/4OF SECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST,SAN

BERNARDINOBASEANDMERIDIAN,STATE OF CALIFORNIA, ACCORDINGTO THE OFFICIALGOVERNMENT PLATTHEREOF.

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

TO ALLOTHERHYDROCARBONSBYWHATSOEVERNAMEKNOWN,(V) GEOTHERMALHEATRIGHTS

OR GEOTHERMALSUBSTANCESTHATMAYBEPRODUCEDFROMTHE PROPERTY,(VI) WATER

RIGHTSANDCLAIMSOR RIGHTSTO WATERAND(VII) ALLPRODUCTSDERIVEDFROMANYOF THEFOREGOING (COLLECTIVELY, "SUBSURFACERESOURCES")LOCATEDIN OR UNDERTHAT CERTAINREALPROPERTYSITUATEDIN THECOUNTYOF RIVERSIDE,STATEOFCALIFORNIAS : , = DESCRIBEDINEXHIBIT"A".A'|':|'ACHE,DHERETOANDINCORPORATEDHEREIN(THE"PROPERTY,"),;i ‘ JTOSTHEEXTENTiSUCH{SUBSUR;F,ACE RESOURCESHAVENOT BEENPREVIOUSLYRESERVED;AND B. THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,STORE

ANDREMOVEANYOF THE SUBSURFACERESOURCESON OR FROMTHE PROPERTY,INCLUDING

I I WITHOUT LIMITATIONTHE RIGHTTO WHIPSTOCKOR DIRECTIONALLYDRILLANDMINE,FROM I LANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,THROUGHOR ACROSS

THESUBSURFACEOF THEPROPERTY,ANDTO BOTTOMSUCHWHIPSTOCKEDOR DIRECTIONALLY

DRILLEDWELLS,TUNNELSAND-SHAI-TSWITHINOR BEYONDTHE EXTERIORLIMITSOFTHE

PROPERTY, ANDTO REDRILL,REFUNNEL,EQUIP,MAINTAIN,REPAIR,DEEPENANDOPERATEANY 0 I

SUCHWELLSOR MINES,BUTWITHOUTTHERIGHTTO DRILL,MINE,EXPLORE,OPERATE, ,2 PRODUCE,STOREOR REMOVEANYOFTHESUBSURFACERESOURCESTHROUGHOR IN THE , * SURFACEOFTHE PROPERTYORTHE UPPERFIVEHUNDRED(500) FEEFOFTHESUBSURFACEOF THEPROPERTY.) ’
PARCELNO.2:

THESSOUTHWEST‘/4OF SECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST,SANBERNARDINOBASE ANDMERIDIAN,STATE OF CALIFORNIA, ACCORDINGTO THEOFFICIALGOVERNMENTPLATTHEREOF.

I EXCEPTINGTHEREFROMTHE EAST‘/2OF THESOUTHWEST‘/4.

ALSOEXCEPTINGTHEREFROMTHEEAST‘/2OFTHE NORTHEAST‘/4OFTHE NORTHWEST1/4OF

Page 219 of 296 ends

THESOUTHWEST‘/4OF SAIDSECTION.

ALSO EXCEPTINGTHEREFROMTHESOUTHERLY40 FEETCONVEYEDTO THECOUNTYOF RIVERSIDEBY DEEDFILEDFORRECORDJULY26, 1949 AS INSTRUMENTNO. 3081 OF OFFICIALRECORDSOF RIVERSIDE COUNTY,CALIFORNIA.

EXCEPTINGTHEREFROMANYPORTIONLYINGWITHINTRACT32030-1 AS SHOWNON FILEINBOOK 404 PAGES67 THROUGH75 OF MAPS,RECORDSOF RIVERSIDECOUNTY,CALIFORNIA.

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

TO ALLOTHERHYDROCARBONSBYWHATSOEVERNAMEKNOWN,(V) GEOTHERMALHEATRIGHTS

OR GEOTHERMALSUBSTANCESTHATMAYBEPRODUCEDFROMTHE PROPERTY,(VI)WATER , RIGHTSANDCLAIMSOR RIGHTSTO WATERAND(VII) ALLPRODUCTSDERIVEDFROMANYOF THE FOREGOING(COLLECTIVELY,"SUBSURFACERESOURCES")LOCATEDIN OR UNDERTHAT

CERTAINREALPROPERTYSITUATEDIN THE COUNTYOF RIVERSIDE,STATE OF CALIFORNIA DESCRIBEDIN EXHIBIT"A"ATTACHEDHERETOANDINCORPORATEDHEREIN(THE"PROPERTY"), TO THEEXTENTSUCHSUBSURFACERESOURCES HAVENOT BEENPREVIOUSLYRESERVED;AND0 F B.THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE, STORE A
I
A A —-ANDREMOVErANY—OF—THE SUBSURFACERESOURCESON OR FROMTHEPROPERTY,INCLUDING’

I WITHOUTFLIMITATIONTHERIGHTTOWHIPSTOCKOR DIRECTIONALLYDRILLANDMINE,FROM

LANDSOTHERTHAN(THE PROPERTY,WELLS,TUNNELSANDSHAFTSINTO,THROUGHOR ACROSS

THESUBSURFACEOFTHELPROPERTY, ANDTO BOTTOMSUCHWHIPSTOCKEDOR DIRECTIONALLY

DRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR BEYONDTHEEXTERIORLIMITSOF THE

PROPERTY,ANDTO REDRILL,RETUNNEL, EQUIP, MAINTAIN,REPAIR,DEEPENANDOPERATEANY 9 SUCH_WELLS TORMINES,BUTWITHOUTTHE RIGHTTO DRILL,MINE,EXPLORE,OPERATE, I

I PRODUCE,STOREOR REMOVEANYOF THESUBSURFACERESOURCESTHROUGHOR IN THE SURFACE OF THE PROPERTY-ORTHE UPPERFIVEHUNDRED(500) FEETOFTHESUBSURFACEOF THE PROPERTY.)
PARCELNO.3: *-
THE EAST‘/2OFTHESOUTHWEST1/4,ANDTHEEAST‘/2OFTHE NORTHEAST1/4OFTHE NORTHWEST 1/4OFTHESOUTHWEST_‘/4OF SECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST,SANBERNARDINO

BASEANDMERIDIAN,STATE OF CALIFORNIA,CCORDINGTO THE OFFICIALGOVERNMENTPLAT THEREOF.

EXCEPTINGTHEREFROMTHESOUTHERLY40 FEETASCONVEYEDTO THECOUNTYOFRIVERSIDE,BY I DEEDRECORDEDJULY26, 1949 AS INSTRUMENTNO. 3081 OF OFFICIALRECORDSOF RIVERSIDE COUNTY,CALIFORNIA.

I TEXCEPTINGTHEREFROM ANYPORTIONLYINGWITHINTRACT32030-1 AS SHOWNON FILEINBOOK 404 PAGES67 THROUGH75 OF MAPS,RECORDSOF RIVERSIDECOUNTY,CALIFORNIA.

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

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

TO ALLOTHERHYDROCARBONSBYWHATSOEVERNAMEKNOWN,(V) GEOTHERMALHEATRIGHTS

Page 220 of 296 ends

OR GEOTHERMALSUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY,(VI) WATERRIGHTS

ANDCLAIMSOR RIGHTSTO WATERAND(VII) ALLPRODUCTSDERIVEDFROMANYOFTHEFOREGOING (COLLECTIVELY,"SUBSURFACERESOURCES")LOCATEDIN OR UNDERTHATCERTAINREALPROPERTY SITUATEDIN THE COUNTYOF RIVERSIDE,STATE OF CALIFORNIADESCRIBEDIN EXHIBIT"A" ATTACHEDHERETOANDINCORPORATEDHEREIN(THE"PROPERTY"),TOTHE EXTENTSUCH SUBSURFACERESOURCESHAVENOTBEENPREVIOUSLYRESERVED;AND
B.THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,STORE

ANDREMOVEANYOF THESUBSURFACERESOURCESON OR FROMTHEPROPERTY,INCLUDING

WITHOUTLIMITATIONTHE RIGHTTO WHIPSTOCKOR DIRECTIONALLYDRILLANDMINE,FROM

LANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,THROUGHOR ACROSS

THESUBSURFACEOFTHE PROPERTY,ANDTO BOTTOMSUCHWHIPSTOCKEDOR DIRECTIONALLY

DRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR BEYONDTHEEXTERIORLIMITSOF THE

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

SUCHWELLSOR MINES,BUTWITHOUTTHE RIGHTTO DRILL,MINE,EXPLORE,OPERATE,

PRODUCE,STOREOR REMOVEANYOF THESUBSURFACERESOURCESTHROUGHOR IN THE SURFACEOFTHEPROPERTYORTHE UPPERFIVEHUNDRED(500) FEETOF THESUBSURFACEOF THEPROPERTY.)
PARCELNO. 4:

THAT PORTIONOF THE EAST ‘/2 OF SECTION29, TOWNSHIP2 SOUTH, RANGE3 EAST, SAN

BERNARDINOBASEAND MERIDIAN, STATE OF CALIFORNIA,ACCORDINGTO THE OFFICIAL GOVERNMENTPLATTHEREOF.

COMMENCING AT THESOUTHEASTCORNEROF SAIDSECTION29; THENCENORTHERLYALONGTHE (EASTERLYBOUNDARY OF SAIDSECTION29, A DISTANCEOF 1483 FEETTO THETRUEPOINTOF BEGINNING; THENCEWESTERLYANDPARALLELWITHTHESOUTHERLYBOUNDARYOF SAIDSECTION 1 29, A DISTANCEOF 528 FEET;THENCENORTHERLYANDPARALLELWITHTHE EASTERLYBOUNDARY OF SAID SECTION29, A DISTANCEOF 577 FEET;THENCEEASTERLYLANDPARALLELWITHTHESOUTHERLY BOUNDARYOF SAIDSECTION29,A’DISTANCEOF 528 FEETTO THEEASTERLYBOUNDARYOF SAID SECTION29;”THENCESOUTHERLYALONGTHE EASTERLYBOUNDARYOF SAID SECTION29, A DISTANCE OF 577 FEETTO THETRUEPOINTOF BEGINNING.

H ALSOEXCEPTINGTHEREFROMOALL THATINTERESTCONVEYEDTO DRHENERGY,INC.,ACOLORADO .

T CORPORATIONBYEDOCUMENTARECORDED OCTOBER13, 2006, AS INSTRUMENTNO. 2006-0756951OF 5 OFFICIALRECORDSOF SAIDICOUNTY. SAIDINTERESTIS FURTHERDESCRIBEDASFOLLOWSI T 7 A. ANYANDALL(I) OIL RIGHTS,(II) MINERALRIGHTS,(III) NATURALGASRIGHTS,(IV) RIGHTS

TO ALLOTHERHYDROCARBONSBYWHATSOEVERNAMEKNOWN,(V) GEOTHERMALHEATRIGHTS ~ OR GEOTHERMALSUBSTANCESTHATMAYBEPRODUCEDFROMTHE PROPERTY,(VI) WATER

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

CERTAINREALPROPERTYSITUATEDIN THE COUNTYOF RIVERSIDE,STATE OF CALIFORNIA A DESCRIBEDINExHIBIT."A".ATTACHEDERETOANDINCORPORATEDHEREIN(THE"PROPERTY"), TO THEEXTENTSUCHSUBSURFACERESOURCESHAVENOT BEENPREVIOUSLYRESERVED; AND” B.THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,STORE

ANDREMOVEANYOF THESUBSURFACERESOURCESON OR FROMTHE PROPERTY,INCLUDING

WITHOUTLIMITATIONTHE RIGHTTO WHIPSTOCKOR DIRECTIONALLYDRILLANDMINE,FROM

LANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,THROUGHOR ACROSS

THESUBSURFACEOFTHEPROPERTY,ANDTO BOTTOMSUCHWHIPSTOCKEDOR DIRECTIONALLY

DRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR BEYONDTHEEXTERIORLIMITSOFTHE

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

SUCHWELLSOR MINES,BUTWITHOUTTHE RIGHTTO DRILL,MINE,EXPLORE,OPERATE,

PRODUCE,STOREOR REMOVEANYOFTHESUBSURFACERESOURCESTHROUGHORIN THE SURFACEOF THEPROPERTYORTHE UPPERFIVEHUNDRED(500) FEETOFTHESUBSURFACEOF THEPROPERTY.)

Page 221 of 296 ends

PARCELNO. 5:

THAT PORTION OF THE EAST ‘/2 OF SECTION 29, TOWNSHIP 2 SOUTH,RANGE4 EAST, SAN

BERNARDINOBASE AND MERIDIAN,STATE OF CALIFORNIA,ACCORDINGTO THE OFFICIAL GOVERNMENTPLATTHEREOF.

COMMENCINGAT THESOUTHEASTCORNEROF SAIDSECTION29; THENCEWESTERLYALONGTHE SOUTHERLYBOUNDARYOF SAID SECTION29, A DISTANCEOF 528 FEETTO THETRUEPOINTOF BEGINNING; THENCECONTINUINGWESTERLYALONGTHESAID SOUTHERLYBOUNDARYOF SAID SECTION29, A DISTANCEOF 528 FEET;THENCENORTHERLYANDPARALLELWITHTHEEASTERLY BOUNDARYOF SAIDSECTION29, A DISTANCEOF 2640 FEET;THENCEEASTERLYANDPARALLELWITH THESOUTHERLYBOUNDARYOF SAIDSECTION29, A DISTANCEOF 528 FEET;THENCESOUTHERLYAND PARALLELWITHTHEEASTERLYBOUNDARYOF SAID SECTION29, A DISTANCEOF 2640 FEETTO THE TRUEPOINTOF BEGINNING.

ALSO EXCEPTINGTHEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC.,A COLORADO V CORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2006, AS INSTRUMENTNO. 2006-0756951 OF OFFICIALRECORDSOF SAIDCOUNTY.SAIDINTERESTIS FURTHERDESCRIBEDASFOLLOWS:

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

TO ALLOTHERHYDROCARBONSBYWHATSOEVERNAMEKNOWN,(V) GEOTHERMALHEATRIGHTS

L OR GEOTHERMALSUBSTANCESTHAT MAYBEPRODUCEDFROMTHE PROPERTY,(VI)WATER r 7
777 _ RIGHTSANDCLAIMSOR RIGHTSTO WATERAND(VII) ALLPRODUCTSDERIVEDFROMANYOF A I
' ,
I -THEFOREGOING(COLLECTIVELY,""SUBSURFACERESOURCES")LOCATEDINORUNDERTHAT

A CERTAINREALPROPERTYSITUATED IN THECOUNTYOF RIVERSIDE,STATE OF CALIFORNIA DESCRIBEDINEXHIBIT"A"ATTACHEDHERETOANDINCORPORATEDHEREIN(THE"PROPERTY"), , TO THEEXTENTSUCHSUBSURFACERESOURCESHAVENOT BEENPREVIOUSLYRESERVED;AND I w
I
I
I B.THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,STORE I ANDREMOVEANYOF THESUBSURFACERESOURCESON OR FROMTHE PROPERTY,INCLUDING I T I
"
: WITHOUTLIMITATIONTHE RIGHTTO WHIPSTOCKOR DIRECTIONALLYDRILLANDMINE,FROM — ’ LANDSOTHERTHANTHE PROPERTY,WELLS,TUNNELSANDSHAETSINTO,THROUGHOR ACROSS V
A
F THESUBSURFACEOF THE PROPERTY,"ANDTO BOTTOMSUCHWHIPSTOCKEDOR DIRECTIONALLY F” F‘ ’ DRILLEDWELLS,‘TUNNELSANDSHAFTSWITHINOR BEYONDTHE EXTERIORLIMITSOFTHE ’ ’ ’
— _—PROPERTY, AND,TO»REDRILL,RETUNNEL,EQUIP,MAINTAIN,REPAIR,DEEPENANDOPERATEAN ’

V SUCHWELLSOR MINES,BUTWITHOUTTHERIGHTTO DRILL,MINE,EXPLORE, OPERATE, I 7 " PRODUCE,STOREOR REMOVEANYOFTHESUBSURFACERESOURCESTHROUGHOR IN THE SURFACEOFTHE PROPERTYORTHE UPPERFIVEHUNDRED(500) FEETOFTHESUBSURFACEOF THEPROPERTY.)
PARCEL8: (APN'S:667-080-002THROUGH004 AND006)
TENTATIVE(TRACT)MAP32030-7, BEINGA SUBDIVISIONOFTHE FOLLOWINGDESCRIBED PROPERTY:

PARCELNO. 1
THATPORTIONOF THE NORTHWEST‘/4OFTHENORTHWEST‘/4OF SECTION28, TOWNSHIP2SOUTH, RANGE4 EAST,SANBERNARDINOBASEANDMERIDIAN, STATEOF CALIFORNIA, ACCORDINGTO THE OFFICIALGOVERNMENTPLATTHEREOF.

BEGINNINGATTHESOUTHEASTCORNEROF THE NORTHWEST‘/4 OFTHE NORTHWEST‘/4,OF SAID SECTION;THENCEWESTERLY,ONTHESOUTHLINEOF SAIDNORTHWEST‘/4OFTHE NORTHWEST‘/4 980.5 FEET,TO THE EASTLINEOFTHATCERTAIN60 FOOTROADKNOWNAS 29PALMSHIGHWAY; THENCENORTH23° 01' 13" EASTONTHENORTHLINEOF SAIDSECTION 390.71 FEETTO THE NORTHEASTCORNEROFTHE NORTHWEST‘/4OFTHE NORTHWEST‘/4OF SAID SECTION;THENCESOUTH0° 09' 30" EAST,ON THEEASTLINEOFTHESAID NORTHWEST‘/4

Page 222 of 296 ends

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

EXCEPTINGTHEREFROMONE HALFOF ALLOIL,GASANDOTHERHYDROCARBONSUBSTANCES UNDERLYINGSAID LANDAND‘/2OF ALLOTHERMINERALS, ASRESERVEDIN DEEDFROMJOSEPH R.TROTTER,HUSBANDANDWIFEFILEDFORRECORDMARCH30, 1955 AS BOOK1715 PAGE572OF OFFICIALRECORDSOF SAIDCOUNTY.

SAID PROPERTYIS ALSOSHOWNAS PARCEL2, 3 AND4 ON RECORDOF SURVEYON FILEIN BOOK27 PAGE 65 OF RECORDSOF SURVEY,RECORDSOF RIVERSIDECOUNTY,CALIFORNIA.

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

TO ALLOTHER HYDROCARBONSBYWHATSOEVERNAMEKNOWN,(V) GEOTHERMALHEATRIGHTS

OR GEOTHERMALSUBSTANCESTHAT MAYBEPRODUCEDFROMTHEPROPERTY,(VI) WATER

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

CERTAINREALPROPERTYSITUATEDIN THECOUNTYOF RIVERSIDE,STATE OF CALIFORNIA 7 DESCRIBEDIN EXHIBIT"A",ATTACHEDHERETOANDINCORPORATEDHEREIN(THE"PROPERTY"),6 TO THEEXTENTSUCHSUBSURFACERESOURCESHAVENOT BEENPREVIOUSLYRESERVED;AND A 1_B.’THEPERPETUAL?RIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,STORE I’)0’ 1 ANDREMOVE7ANY”OF’THE‘SUBSURFACE RESOURCESON OR FROMTHE PROPERTY,INCLUDING WITHOUT.LIMITATIONTHE RIGHTTO WHIPSTOCKOR DIRECTIONALLYDRILLANDMINE,FROM

LANDSOTHERTHANTHE PROPERTY,WELLS,TUNNELSANDSHAFTSINTO,THROUGHOR ACROSS

THESUBSURFACEOF THE PROPERTY,ANDTO BOTTOMSUCHWHIPSTOCKEDOR DIRECTIONALLY

DRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR BEYONDTHEEXTERIORLIMITSOF THE

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

SUCHWELLSOR MINES,BUTWITHOUTTHERIGHTTO DRILL,MINE,EXPLORE,OPERATE, PRODUCE,STORELORREMOVEANYOF THESUBSURFACERESOURCESTHROUGHOR IN THE 0 SURFACEOF THEPROPERTY.ORTHE UPPERFIVEHUNDRED(500) FEETOFTHESUBSURFACEOF THEPROPERTY.)
PARCELNO. 2
THESOUTH1/2OF THE NORTHWEST1/4OF SECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST,SAN

BERNARDINOBASEANDMERIDIAN,STATE OF CALIFORNIA,ACCORDINGTO THE OFFICIALGOVERNMENT PLATTHEREOF.

ALSOEXCEPTINGTHEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC., A COLORADO . CORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2006, AS INSTRUMENTNO. 2006-0756951 OF ” OFFICIALRECORDSOF SAIDCOUNTY.SAIDINTERESTIS FURTHERDESCRIBEDASFOLLOWS:

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

TO ALLOTHER HYDROCARBONSBYWHATSOEVERNAMEKNOWN,(V) GEOTHERMALHEATRIGHTS

OR GEOTHERMALSUBSTANCESTHATMAYBEPRODUCEDFROMTHE PROPERTY,(VI) WATER

RIGHTSANDCLAIMSOR RIGHTSTOWATERAND(VII) ALLPRODUCTSDERIVEDFROMANYOF THE FOREGOING(COLLECTIVELY,"SUBSURFACERESOURCES")LOCATEDIN OR UNDERTHAT

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

ANDREMOVEANYOF THE SUBSURFACERESOURCESON OR FROMTHE PROPERTY,INCLUDING

WITHOUTLIMITATIONTHERIGHTTO WHIPSTOCKOR DIRECTIONALLYDRILLANDMINE,FROM

Page 223 of 296 ends

LANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,THROUGHORACROSSTHE

SUBSURFACEOFTHE PROPERTY,ANDTO BOTTOMSUCHWHIPSTOCKEDOR DIRECTIONALLYDRILLED

WELLS,TUNNELSANDSHAFTSWITHINOR BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY,ANDTO

REDRILL,RETUNNEL, EQUIP,MAINTAIN,REPAIR,DEEPENANDOPERATEANYSUCHWELLSOR MINES, BUTWITHOUTTHE RIGHTTO DRILL,MINE,EXPLORE, OPERATE,PRODUCE,STORE OR REMOVEANYOF

THESUBSURFACERESOURCESTHROUGHOR IN THE SURFACEOF THE PROPERTYOR THEUPPERFIVE HUNDRED(500) FEETOFTHESUBSURFACEOFTHEPROPERTY.)
PARCEL9: (APN'S:667-080-006 AND007)
TENTATIVE(TRACT)MAP32030-8, BEINGA SUBDIVISIONOF THEFOLLOWINGDESCRIBED PROPERTY:

PARCELNO. 1
THENORTHEAST1/4OF THE NORTHWEST‘/4ANDTHE NORTH1/2OFTHENORTHEAST‘/4OF SECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST,SANBERNARDINOBASEANDMERIDIAN, STATEOFCALIFORNIA, ACCORDINGTO THE OFFICIALGOVERNMENTPLATTHEREOF.

EXCEPTINGTHEREFROMANYPORTIONLYINGWITHINTRACT32030-10 AS SHOWNON FILEINBOOK 419 PAGES40 THROUGH47 OF MAPS,RECORDSOF RIVERSIDECOUNTY,CALIFORNIA. ”
* ALSOEXCEPTINGTHEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC.,A COLORADO A CORPORATIONBY—DOCUMENT- RECORDEDOCTOBER13, 2006, AS INSTRUMENTNO. 2006-0756951OF ‘ OFFICIAL-RECORDSOFSAID COUNTY.SAIDINTERESTIS FURTHERDESCRIBEDASFOLLOWS: - 33 ’ A. ANYANDALL(I) OILRIGHTS,(II) MINERALRIGHTS,(III) NATURALGASRIGHTS,(IV) RIGHTSTO

T , , ALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(V) GEOTHERMALHEATRIGHTSOR

GEOTHERMALSUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY,(VI) WATERRIGHTS

ANDCLAIMSOR RIGHTSTO WATERAND(VII) ALLPRODUCTSDERIVEDFROMANYOFTHE FOREGOING’(COLLECTIVELY, 1'SUBSURFACERSOURCES")LOCATEDIN OR UNDERTHATCERTAIN . ’
— REALPROPERTYSITUATEDIN THECOUNTYOF RIVERSIDE,STATEOF CALIFORNIADESCRIBEDIN EXHIBIT"A"ATTACHEDHERETOANDINCORPORATEDHEREIN(THE"PROPERTY"),TOTHE EXTENTSUCHSUBSURFACERESOURCESHAVENOT BEENPREVIOUSLYRESERVED;AND B. THEPERPETUALRIGHT—TODRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,STORE

ANDREMOVEANYOFTHESUBSURFACERESOURCESON OR FROMTHEPROPERTY,INCLUDING I
I I WITHOUTLIMITATIONTHE RIGHTTO WHIPSTOCKOR DIRECTIONALLYDRILLANDMINE,FROM; 7 LANDSOTHERTHANTHE PROPERTY,WELLS,TUNNELSANDSHAFTSINTO,THROUGHORACROSS

THESUBSURFACEOFTHEPROPERTY,ANDTO BOTTOMSUCHWHIPSTOCKEDOR DIRECTIONALLY

DRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR BEYONDTHEEXTERIORLIMITSOFTHE PROPERTY,ANDTOLREDRILL, RETUNNEL, EQUIP,MAINTAIN,REPAIR,DEEPENANDOPERATEANY 7 SUCHWELLSOR MINES,BUTWITHOUTTHE RIGHTTO DRILL,MINE,EXPLORE,OPERATE,

PRODUCE,STOREOR REMOVEANYOFTHESUBSURFACERESOURCESTHROUGHOR IN THE SURFACEOF THE PROPERTYFORTHE UPPERFIVEHUNDRED(500) FEETOFTHESUBSURFACEOFF THEPROPERTY.)
PARCELNO. 2:
-THESOUTH‘/2OFTHE NORTHWEST‘/4OF SECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST,SAN

BERNARDINOBASEANDMERIDIAN,STATE OF CALIFORNIA, ACCORDINGTO THEOFFICIALGOVERNMENT PLATTHEREOF.

Page 224 of 296 ends

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

TO ALLOTHERHYDROCARBONSBYWHATSOEVERNAMEKNOWN,(V) GEOTHERMALHEATRIGHTS

OR GEOTHERMALSUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY,(VI) WATER

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

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

ANDREMOVEANYOFTHESUBSURFACERESOURCESON OR FROMTHEPROPERTY,INCLUDING

WITHOUTLIMITATIONTHERIGHTTO WHIPSTOCKOR DIRECTIONALLYDRILLANDMINE,FROM

LANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,THROUGHOR ACROSS

THESUBSURFACEOFTHEPROPERTY,ANDTO BOTTOMSUCHWHIPSTOCKEDOR DIRECTIONALLY

DRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR BEYONDTHEEXTERIORLIMITSOFTHE

PROPERTY,ANDTOREDRILL,RETUNNEL,EQUIP,MAINTAIN,REPAIR,DEEPENANDOPERATEANY . SUCHWELLSOR MINES,BUTWITHOUTTHE RIGHTTO DRILL,MINE,EXPLORE,OPERATE,

PRODUCE,STOREOR REMOVEANYOF THE SUBSURFACERESOURCESTHROUGHOR IN THE SURFACEOF THEPROPERTYOR THEUPPERFIVEHUNDRED(500) FEETOFTHESUBSURFACEOF A THEPROPERTY.) ‘ , PARCEL10: (APN'S:667-080-002THROUGH004, 006 AND007)
1 ’ TENTATIVE(TRACT)MAP-32030-9,BEINGA SUBDIVISIONOFTHEFOLLOWINGDESCRIBED5 PROPERTY:

PARCELNO. 1
THATPORTIONOFTHENORTHWEST‘/4OFTHE NORTHWEST1/4OF SECTION28, TOWNSHIPZSOUTH, RANGE4 EAST,SAN BERNARDINOBASEANDMERIDIAN,STATE OF CALIFORNIA, ACCORDINGTO THE OFFICIALGOVERNMENTPLATTHEREOF.

BEGINNING"ATTHESOUTHEASTCORNEROFTHE NORTHWEST‘/4OF THE NORTHWEST‘/4,OF SAID SECTION;‘THENCEWESTERLY,ONTHELSOUTHLINEOF SAIDNORTHWEST1/4OFTHENORTHWEST1/4 , 980.5-FEET,iTOTHE EASTLLINEOF THATCERTAIN60 FOOTROADKNOWNAS 29PALMSHIGHWAY; THENCENORTH23° 01' 13" EASTONTHE NORTHLINEOF SAIDSECTION 3 390.71 FEETTO THENORTHEASTCORNEROF THE NORTHWEST1/4OFTHE NORTHWEST‘/4OF SAID , SECTION;THENCESOUTH0° 09' 30" EAST,ONTHE EASTLINEOF THESAIDNORTHWEST1/4OFTHE NORTHWEST‘/4OFSAID SECTION,1380.18 FEET,TO THEPOINTOF BEGINNING.

EXCEPTINGTHEREFROMONE HALFOF ALLOIL,GASANDOTHERHYDROCARBONSUBSTANCES UNDERLYINGSAIDLANDAND‘/2OFALLOTHERMINERALS,ASRESERVEDIN DEEDFROMJOSEPH R.TROTTER,HUSBANDANDWIFEFILEDFORRECORDMARCH30, 1955 AS BOOK1715 PAGE572OF OFFICIALRECORDSOF SAIDCOUNTY.

ALSOEXCEPTINGTHEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC.,A COLORADO CORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2006, AS INSTRUMENTNO. 2006-0756951 OF 3 OFFICIALRECORDSOF SAIDCOUNTY.SAIDINTERESTIS FURTHERDESCRIBEDASFOLLOWS:

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

TO ALLOTHERHYDROCARBONSBYWHATSOEVERNAMEKNOWN,(V) GEOTHERMALHEATRIGHTS

OR GEOTHERMALSUBSTANCESTHATMAYBEPRODUCEDFROMTHE PROPERTY,(VI)WATER

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

Page 225 of 296 ends

B.THE PERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,STORE

ANDREMOVEANYOFTHESUBSURFACERESOURCESON OR FROMTHEPROPERTY,INCLJDING

WITHOUTLIMITATIONTHE RIGHTTO WHIPSTOCKOR DIRECTIONALLYDRILLANDMINE,FROM

LANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAETSINTO,THROUGHOR ACROSS

THESUBSURFACEOFTHEPROPERTY,ANDTO BOTTOMSUCHWHIPSTOCKEDOR DIREL IONALLY DRILLEDWELLS,TUNNELSANDSHAF|'S WITHINOR BEYONDTHEEXTERIORLIMITSOF THE

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

SUCHWELLSOR MINES,BUTWITHOUTTHERIGHTTO DRILL,MINE,EXPLORE, OPERATE,

PRODUCE,STOREOR REMOVEANYOF THESUBSURFACERESOURCESTHROUGHOR IN THE SURFACEOFTHEPROPERTYORTHE UPPERFIVEHUNDRED(500) FEETOFTHESUBSURFACEOF THE PROPERTY.)
SAID PROPERTYIS ALSOSHOWNAS PARCEL2, 3 AND4 ON RECORDOF SURVEYON FILEIN BOOK27 PAGE65 OF RECORDSOF SURVEY,RECORDSOF RIVERSIDECOUNTY,CALIFORNIA.

PARCELNO. 2
THENORTHEAST1/4OFTHE NORTHWEST1/4ANDTHE NORTH‘/2OF THENORTHEAST‘/4OF SECTION28, . TOWNSHIP2 SOUTH,RANGE4 EAST,SAN BERNARDINOBASEANDMERIDIAN, STATEOFCALIFORNIA, I ACCORDINGTO THE OFFICIALGOVERNMENTPLATTHEREOF.
. EXCEPTINGTHEREFROMANY’PORTIONLYINGWITHINTRACT320I30~10 AS SHOWNON FILEINBOOKA 2419 PAGES40“THROUGH'47OF MAPS,RECORDSOF RIVERSIDECOUNTY,CALIFORNIA.

ALSOEXCEPTINGTHEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC.,A COLORADO. I CORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2006, AS INSTRUMENTNO. 2006-0756951 OF OFFICIALRECORDSOF SAIDCOUNTY.SAIDINTERESTIS FURTHERDESCRIBEDASFOLLOWS:

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

YTOWALLIOTHERHYDROCARBONSBY WHATSOEVERNAMEKNOWN,(V) GEOTHERMALHEAT,RIGHTS L 5 II ORVGEOTHERMALSUBSTANCESTHATMAYBEPRODUCEDFROMTHE PROPERTY,(VI) WATER

RIGHTSANDCLAIMSORRIGHTS TO WATERAND(VII) ALLPRODUCTSDERIVEDFROMANYOF THE FOREGOING(COLLECTIVELY,"SUBSURFACERESOURCES")LOCATEDIN OR UNDERTHAT I CERTAINREALPROPERTYSITUATEDIN THECOUNTYOF RIVERSIDE,STATE OF CALIFORNIA -DESCRIBEDTINEXHIBIT"A"ATTACHEDHEREFOANDINCORPORATEDHEREIN(THE "PROPERTY'.'),:, TO THEEXTENTSUCHSUBSURFACERESOURCESHAVENOTBEENPREVIOUSLYRESERVED;AND . B.THE PERPETUALRIGHTTODRILL,MINE,EXPLOREANDOPERATEFOR ANDPRODUCE,STORE

ANDREMOVEANYOF THESUBSURFACERESOURCESON OR FROMTHE PROPERTY,INCLUDING

WITHOUTLIMITATIONTHE RIGHTTO WHIPSTOCKOR DIRECTIONALLYDRILLANDMINE,FROM

LANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,THROUGHOR ACROSS I I
. THESUBSURFACEOF THEPROPERTY,ANDTO BOTTOMSUCHWHIPSTOCKEDOR DIRECTIONALLY

DRILLEDWELLS,TUNNELSANDSHAI-TSWITHINOR BEYONDTHE EXTERIORLIMITSOF THE E —— PROPERTY,ANDTOREDRILL,RETUNNEL, EQUIP,MAINTAIN,REPAIR,DEEPENANDOPERATEANY’

SUCHWELLSOR MINES,BUTWITHOUTTHERIGHTTO DRILL,MINE,EXPLORE, OPERATE,

PRODUCE,STOREOR REMOVEANYOFTHESUBSURFACERESOURCESTHROUGHOR IN THE SURFACEOF THEPROPERTYORTHEUPPERFIVEHUNDRED(500) FEETOFTHESUBSURFACEOF THE PROPERTY.)
PARCELNO. 3
THESOUTH1/2OF THE NORTHWEST‘/4OF SECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST,SAN

BERNARDINOBASEANDMERIDIAN, STATE OF CALIFORNIA, ACCORDINGTO THEOFFICIALGOVERNMENT PLATTHEREOF.

ALSOEXCEPTINGTHEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC.,A COLORADO CORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2006, AS INSTRUMENTNO.

Page 226 of 296 ends

2006-0756951 OF OFFICIALRECORDSOF SAIDCOUNTY.SAID INTERESTIS FURTHERDESCRIBEDAS FOLLOWS:

A. ANYAND-ALL(I) OIL RIGHTS,(II) MINERALRIGHTS,(III) NATURALGASRIGHTS,(IV) RIGHTS

TO ALLOTHERHYDROCARBONSBYWHATSOEVERNAMEKNOWN,(V)GEOTHERMALHEATRIGHTS

OR GEOTHERMALSUBSTANCESTHATMAYBEPRODUCEDFROMTHE PROPERTY,(VI) WATER

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

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

ANDREMOVEANYOF THESUBSURFACERESOURCESON OR FROMTHEPROPERTY,INCLUDING

WITHOUTLIMITATIONTHE RIGHTTO WHIPSTOCKOR DIRECTIONALLYDRILLANDMINE,FROM

LANDSOTHERTHANTHEPROPERTY, WELLS,TUNNELSANDSHAFTSINTO,THROUGHOR ACROSS

THESUBSURFACEOF THEPROPERTY,ANDTO BOTTOMSUCHWHIPSTOCKEDOR DIRECTIONALLY

DRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR BEYONDTHE EXTERIORLIMITSOFTHE

PROPERTY,ANDTO REDRILL,RETUNNEL, EQUIP,MAINTAIN,REPAIR,DEEPENANDOPERATEANY _ SUCHWELLSOR MINES,BUTWITHOUTTHERIGHTTO DRILL,MINE,EXPLORE, OPERATE, I PRODUCE,STOREOR REMOVEANYOFTHESUBSURFACERESOURCESTHROUGHOR IN THE F SURFACEOF THEPROPERTYORTHEUPPERFIVEHUNDRED(500) FEETOFTHESUBSURFACE0 THE PROPERTY.

A --PARCEL-,~1-1-:(APN'S:667-300-055-0,667-300-056-1,667-300-057-2,667-310-085-8,677-310-086-9, ”
I
I 677-310-087-O,677-320-O27-7,677-320-028-8, 677-320-O79-4,667-330-014-6,667-330-073-9,667- 2’ 330-074-0 AND667-330-075-1) LETTEREDLOTSA, B, C,—F,G, H,I, J,”'K,C.L, MANDN OF TRACTNO. 32030-3 AS SHOWNON BYMAPON FILE INBOOK419 PAGES29 THROUGH39 OF MAPS,RECORDSOF RIVERSIDECOUNTY,CALIFORNIA.

EXCEPTINGTHEREFROM:

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

TO ALLOTHERHYDROCARBONSBYWHATSOEVERNAMEKNOWN,(V)GEOTHERMALHEATRIGHTS -ORFGEOTHERMAL SUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY,(VI) WATER

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

CERTAINREALPROPERTYSITUATEDIN THECOUNTYOF RIVERSIDE,STATE OF CALIFORNIA DESCRIBEDIN EXHIBIT"A"IN DEEDRECORDEDOCTOBER13, 2006 AS INSTRUMENTNO. 2006- 0756951 OF OFFICIAL(THE "PROPERTY"),TO THE EXTENTSUCHSUBSURFACERESOURCES HAVE NOT BEENPREVIOUSLYRESERVED;AND I
B.THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,STORE I “ ANDREMOVEANYOFTHESUBSURFACERESOURCESON OR FROMTHEPROPERTY,INCLUDINGI WITHOUTLIMITATIONTHE RIGHTTO WHIPSTOCKOR DIRECTIONALLYDRILLANDMINE,FROM

LANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,THROUGHORACROSS

THESUBSURFACEOF THEPROPERTY,ANDTO BOTTOMSUCHWHIPSTOCKEDOR DIRECTIONALLY

DRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR BEYONDTHEEXTERIORLIMITSOFTHE

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

SUCHWELLSOR MINES,BUTWITHOUTTHERIGHTTO DRILL,MINE,EXPLORE, OPERATE,

PRODUCE,STOREOR REMOVEANYOFTHESUBSURFACERESOURCESTHROUGHOR IN THE SURFACEOFTHEPROPERTYOR THE UPPERFIVEHUNDRED(500) FEETOFTHESUBSURFACEOF THE PROPERTY.AS CONVEYEDIN DEEDRECORDEDOCTOBER13, 2006 AS INSTRUMENTNO. 2006- 0756951 OF OFFICIALRECORDS.

PARCEL12: (APN'S:667-340-049-9,667-340-350-9,667-350-075-3,667-350-O76-4,667-360-061-1, 667-360-062-2 AND667-360-063-3)

Page 227 of 296 ends

LEITEREDLOTSATHROUGHF OFTRACTNO. 32030-10,AS SHOWNBYMAPON FILEIN BOOK419PAGES 40 THROUGH47 OF MAPS,RECORDSOF RIVERSIDECOUNTY,CALIFORNIA.

EXCEPTINGTHEREFROM:

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

TO ALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(V) GEOTHERMALHEATRIGHTS

OR GEOTHERMALSUBSTANCESTHATMAYBEPRODUCEDFROMTHE PROPERTY,(VI) WATER

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

ANDREMOVEANYOF THESUBSURFACERESOURCESON OR FROMTHEPROPERTY,INCLUDING

WITHOUTLIMITATIONTHERIGHTTO WHIPSTOCKOR DIRECTIONALLYDRILLANDMINE,FROM

LANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,THROUGHOR ACROSS

THESUBSURFACEOF THEPROPERTY,ANDTO BOTTOMSUCHWHIPSTOCKEDOR DIRECTIONALLY

DRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR BEYONDTHEEXTERIORLIMITSOF THE . .
- PROPERTY,:ANDTO REDRILL, RETUNNEL, EQUIP,MAINTAIN,REPAIR,DEEPENANDOPERATEANY ,
A SUCHWELLS-ORMINES,-BUT.WITHOUTTHE RIGHTTO DRILL,MINE,EXPLORE, OPERATE, PRODUCE;:STORE’ORREMOVEANYOFTHESUBSURFACERESOURCESTHROUGHoR IN THE - SURFACEIOFTHEPROPERTYOR THEUPPERFIVEHUNDRED(500) FEETOFTHESUBSURFACEOF THEPROPERTY.AS CONVEYEDINDEEDRECORDEDOCTOBER13, 2006 AS INSTRUMENTNO. 2006- 7 0756951 OF OFFICIALRECORDS.

PARCEL13: (APN: 162-230-015AND162-230-021)
"
~ PARCEL"B"ASSHOWNON LOTLINEADJUSTMENTNO. LLA#19007, AS EVIDENCEDBY DOCUMENTRECORDEDMARCH12, 2020 AS INSTRUMENTNO. 2020-0115685 OF OFFICIAL RECORDS,BEINGMOREPARTICULARLYDESCRIBEDAS FOLLOWS:

THATPORTIONOF LOT3:OF.TRACTNO. 36822, IN THECITYOF JURUPAVALLEY,COUNTYOF RIVERSIDE, STATEOF CALIFORNIA,S PERMAPRECORDEDIN BOOK465 OF MAPS,PAGES69 THROUGH73, INCLUSIVE, OF MAPS,IN THEOFFICEOFTHECOUNTYRECORDEROF SAIDCOUNTY,I LYINGWITHINSECTION27, TOWNSHIP2 SOUTH,RANGE6 WEST,S.B.M.,MOREPARTICULARLY DESCRIBEDAS FOLLOWS: A
BEGINNINGAT THE NORTHEASTCORNEROF SAIDLOT3, SAIDPOINTBEINGONTHESOUTHERLYRIGHT OFWAYOF RANCHOJURUPADRIVE,HAVINGA HALFWIDTHOF 30.00 FEET,AS SHOWNONSAIDMAP, SAIDPOINTALSOBEINGON A NONTANGENTCURVECONCAVETO THENORTHANDHAVINGA RADIUSOF 280.00 FEET,A RADIALLINEFROMSAID POINTBEARSNORTH08° 54’ 47" EAST; THENCESOUTH00° 36’ 07" WEST,ALONGTHEEASTLINEOF SAIDLOT3, A DISTANCEOF 516.44FEET; THENCESOUTH28° 46’ 32" WEST,A DISTANCEOF 49.89 FEETTO A POINTONTHESOUTHERLYLINEOF SAIDLOT3, SAIDPOINTALSOBEINGONTHENORTHERLYRIGHTOF WAYOF EQUESTRIANWAY, HAVINGA HALFWIDTHOF 30.00 FEET,AS SHOWNON SAID MAP; THENCENORTH610 13’28" WEST,ALONGSAIDSOUTHERLYLINEOF SAIDLOT3, A DISTANCEOF

28.60 FEET;
THENCESOUTH31° 30’ 21" WEST,A DISTANCEOF 275.43 FEET;

Page 228 of 296 ends

THENCESOUTH76° 56’ 11" WEST,A DISTANCEOF 35.62 FEET;
THENCENORTH57° 37’ 59" WEST,A DISTANCEOF 340.72 FEETTO THEBEGINNINGOF ATANGENT CURVECONCAVETO THE NORTHEASTANDHAVINGA RADIUSOF 345.00 FEET; THENCENORTHWESTERLYALONGSAIDCURVE,ANARCDISTANCEOF 88.86 FEET,THROUGHA CENTRALANGLEOF 14° 45’ 26";
THENCENORTH72° 23’ 25" WEST,A DISTANCEOF 496.61 FEETTO THEBEGINNINGOF ATANGENT CURVECONCAVETO THESOUTHANDHAVINGA RADIUSOF 845.00 FEET; THENCEWESTERLYALONGSAIDCURVE,ANARCDISTANCEOF 484.34 FEET,THROUGHACENTRAL ANGLEOF 32° 50’ 27";
THENCESOUTH74° 46' 08" WEST,A DISTANCEOF 153.49 FEETTO THEBEGINNINGOF ATANGENT CURVECONCAVETO THESOUTHEASTANDHAVINGA RADIUSOF 670.00 FEET; THENCESOUTHWESTERLYALONGSAIDCURVE,ANARCDISTANCEOF 1.51 FEET,THROUGHA CENTRALANGLEOF 00° 07’ 44";
, :;l_THENCE NORTH64°15’ 42’5WEST,"A'DISTANCEOF 19.83 FEETTO A POINTON THEWEST LINEOF ‘ - -{SAID-I.-COT3, SAIDPOINT BEING-ONTHE EASTRIGHTOF WAYOF BEACHSTREET,HAVINGA HALF WIDTHOF 28.00 FEET,AS SHOWNON SAIDMAP;
TTHENCENORTH15° 13’52"WEST,’ADISTANCEOF 80.36 FEETTO THEBEGINNINGOF ATANGENT CURVECONCAVETO THEEASTANDHAVINGA RADIUSOF 302.00 FEET;
A THENCENORTHERLYALONGSAIDCURVE,ANARCDISTANCEOF 294.47 FEET,THROUGHA CENTRAL ANGLEOF 55952’°01”TO THE BEGINNINGOF A REVERSECURVECONCAVETO THE 5 F
,, NORTHWESTANDHAVINGA.RADIUSOF 258.00 FEET,A RADIALLINEFROMSAID POINTBEARS T NORTH49° 21’ 51" WEST; THENCENORTHERLYAALONGSAID CURVE,ANARCDISTANCEOF 170.77 FEET,THROUGHA CENTRALANGLEOF 37° 55’ 25";
THENCENORTH51° 01’ 34" EAST,A DISTANCEOF 19.54 FEETTO A POINTONTHE NORTHLINEOF SAIDLOT3, SAIDPOINTBEINGONTHESOUTHRIGHTOF WAYOF RANCHOJURUPADRIVE, ~ HAVINGA HALFWIDTHOF 30.00 FEET,AS SHOWNON SAIDMAP;
THENCESOUTH89° 05’ 29" EAST,ALONGSAIDNORTHLINE,A DISTANCEOF 1041.48 FEETTOTHE

I BEGINNINGOFA TANGENTCURVECONCAVETO THESOUTHANDHAVINGA RADIUSOF 220.00 FEET;
THENCEEASTERLYALONGSAIDCURVE,ANARCDISTANCEOF 84.14 FEET,THROUGHA CENTRAL ANGLEOF 21° 54' 51";
THENCESOUTH67° 10’38 EAST,A DISTANCEOF 57.56 FEETTO THEBEGINNINGOF ATANGENT CURVECONCAVETO THENORTHANDHAVINGA RADIUSOF 280.00 FEET; THENCESOUTHEASTERLYALONGSAIDCURVE,ANARCDISTANCEOF 67.98 FEET,THROUGHA CENTRALANGLEOF 13° 54’ 35"TO THEPOINTOF BEGINNING.

PARCEL14: (APN: 162-220-019;162-220-020;162-220-021;162-230-010;162-230-011; 162-230-

Page 229 of 296 ends

012; 162-230-O13;162~230-O14AND162-230-016)
LOT4, 5, 6, 7, 8 AND9 OF TRACTNO. 36822, IN THECITYOF JURUPAVALLEY,COUNTYOF RIVERSIDE,STATE OF CALIFORNIA, AS PERMAPRECORDEDIN BOOK465 OF MAPS,PAGES69 THROUGH73, INCLUSIVE,OF MAPS,IN THE OFFICEOFTHECOUNTYRECORDEROF SAIDCOUNTY.

Page 230 of 296 ends

RECORDING REQUESTEDBY
AND WHEN RECORDED MAIL TO:
(Space Above For Recorder's Use)

LIEN CONTRACT
THIS LIEN CONTRACT (“Lien Contract") is entered into this day of January, 2010, by and between the City of Desert Hot Springs ("City") and Skybome Ventures LLC, a Delaware limited liability company ("Developer").

RECITALS
A. Developer is the current owner of that certain real property situated in the City of Desert Hot Springs, County of Riverside, State of California, as more particularly described on Exhibit "A" attached hereto and incorporated herein ("Property").

B. In accordance with the Subdivision Map Act (California Government Code Section 66410, et seq.), Developer’s predecessor in interest posted bonds with the City in connection with the City's approval of the ?nal map(s) for the Property.

C. Pursuant to California Government Code Section 66499(a)(4), the City is authorized to accept the alternate security proposed by Developer. Developer and City desire to substitute this Lien Contract for the bonds posted with the City.

NOW, THEREFORE, for valuable consideration, the receipt and suf?ciency of which are hereby acknowledged, the parties hereto agree as follows:

1. Developer’s Performance. Developer has agreed (or has assumed the obligations) to construct the improvements previously approved by the City in connection with the development of the Property (the ''Improvements’’) pursuant to those certain subdivision improvement agreements more particularly set forth in Schedule 1 attached hereto and incorporated herein (collectively referred to herein as the “Agreements”). Pursuant to the Agreements, Developer or its predecessor in interest delivered to the City the performance and labor and material bonds more particularly set forth in Schedule 2 attached hereto and incorporated herein (“Bonds”).

2. Alternative Form of Security/Effect of Lien Contract. In lieu of the Bonds as security for the performance of the obligations set forth in Section 1 above, Developer hereby grants to City a lien upon the Property
in the initial—amountof $ 8 654 114 plus any future advances in excess of this sum resulting from increased construction costs of the Improvements (the “Lien”). The amount of the 347/020269-0040
103691607 1-108/O7/23 Page 231 of 296
Lien is allocated to each of the Agreements in the amounts shown on Schedule 1. The amount of the Lien shall automatically be reduced as the Improvements are completed by an amount equal to the amount of security required for such Improvement under the applicable Agreement as shown in Schedule 1. City hereby agrees that notwithstanding anything to the contrary set forth in the Agreements, Developer shall not be deemed in breach of the Agreements by virtue of withdrawing the Bonds. Within thirty (30) days after the recordation of this Lien Contract, the City shall exonerate and release the Bonds and return the Bonds to the person or entity which posted such Bonds. In the event Developer, its successors, heirs, assigns or transferees fail to (i) install and construct the Improvements in the time and manner required under the applicable Agreement following the expiration of any and all applicable notice and cure periods; or (ii) pay the Security Fee as required under Section 5 below (in either case, an "Event of Default"), City may exercise its rights or remedies under this Lien Contract if Developer fails to cure any such Event of Default within thirty (30) days of City’s written notice to Developer specifying in reasonable detail the nature of such default. If such default is of such a character as to require more than thirty (30) days to cure, said thirty (30) day period stall be extended to include such additional time as is reasonably necessary to cure such default. Upon the occurrence of an Event of Default and Developer's subsequent failure to cure such default within the time period set forth in this Section 2, Developer agrees that the City may install and construct, or cause the installation and construction of, the Improvements which are the subject of such Event of Default. City or its contractor may enter upon the Property as reasonably necessary to construct such Improvements.

Developer or its successors, heirs, assigns or transferees shall reimburse City for the cost of such Improvements upon their completion. In the event such costs are not paid to City within ninety (90) days from completion, City may foreclose this lien as provided by law for the foreclosure of mortgages.

3. Release‘ Subordination. This Lien Contract may be released in whole or in part and may be subordinated to other liens or encumbrances if the City Manager or his/her designee determines that the obligation to construct the Improvements is suf?ciently secured by a lien on other property or that the release or subordination of the lien will not jeopardize the completion of the Improvements, and any such subordination must first be approved in writing by the City Manager or his/her designee in its reasonable discretion. Without —li1nitingthe foregoing, Developer may obtain and City Manager or his/her designee shall grant the partial release (the "Partial Release") of any portion of the Property comprising of one or more subdivided lots within the Property or phases or tracts within the Property (the %ReleasedLots/Phases1)?) from this Lien Contract, if at the time of the request for the Partial Release: (a) Developer provides new performance and labor and materials bonds reasonably acceptable to the City Manager or his/her designee or pursuant to the terms and conditions of the applicableAgreement with respect to such Released Lots/Phases; or (b) Developer has substantially completed the required Improvements on the Released Lots/Phases; or (c) Developer demonstrates (by delivery of an appraisal or other method reasonable acceptable to the City Manager or his/her designee) that the Lien-to~Value Ratio (_de?ned below) with respect to the Remaining Property (_de?ned below) is not greater than ?fty percent (50%). —The“Lien-to-Value Ratio” shall mean the ratio of (i)—_theamount of security for the construction of the Improvements required u11derthe then remaining Agreements with respect to the Property, to (ii)—_thefair market value of the Remaining Property. “Remaining Property” shall mean that portion of the Property remaining subject to this Lien Contract upon or after the release of Released Lots/Phases from this Lien Contract. _Developeragrees that prior to the issuance of any permits to commence construction of improvements on or with respect to any 347/020269»O040
lO369l6.07 aO8/O7r'23 '2‘

Page 232 of 296 ends

Released Lots/Phases within the Property, the Developer shall deliver to City Manager or his/her designee in accordance with the GitJyL’siCity'sGeneral Guidelines on Use of Financial Assurances And Security Provided By Municipal Code, California Government Code and the Subdivision Map Act,—”,?a performance bond, cash or an acceptable letter of credit equal to the cost of the improvements to be constructed thereon, and such Released Lots/Phases will be released from the Lien Contract as provided above and the amount of the Lien shall be reduced coimnensurately.

During the term of this Lien Contract, Developer agrees to provide the maintenance necessary to keep the existing PM-l0 permit and the SWPPP and its applicable permits in compliance on the Property.

Notwithstanding the foregoing, Developer shall have the right to convey any portion of the Property covered by this Lien Contract, and the purchaser shall be bound by the terms and provisions of this Lien Contract; provided, however, in the event Developer transfers any part of the Property to an individual homeowner, such individual homeowner purchasershall not be bound by this Lien Contract and title to the lot purchased by such homeowner shall not be subject to this Lien Contract. Upon the conveyance of any portion of the Property by Developer,Developer shall be released from any obligations hereunder with respect to that portion of the Property conveyed. 7—.6. Recordation. Upon execution of this Lien Contract by both City and Developer, City shall record this Lien Contract with the Clerk of Riverside County. 8:7. General Previsions.

8.—l7.1Entire Agreement. This Lien Contract together with all exhibits and other agreements expressly referred to herein constitutes the entire agreement between the parties with 347/020269-0040
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Page 233 of 296 ends

respect to the subject matter contained herein. All prior or contemporaneous agreements, understandings, representations, warranties and statements, oral or written, are superseded. 8727.2 Governing Law. This Lien Contract shall be governed, interpreted, construed and enforced in accordance with the laws of the State of California. 8737.3 Headings. The captions and headings used in this Lien Contract are for convenience only and are not a part of this Lien Contract and are not intended to de?ne, limit or affect the construction or interpretation of any term or provision hereof.

8.47.4 Modi?cation; Waiver. No modi?cation, waiver, amendment, discharge or change of this Lien Contract shall be valid unless it is in writing and signed by the party against which the enforcement of such modification, waiver, amendment,discharge or change is or may be sought.

8.é7.5 Severability. If any term, provision, covenant or condition of this Lien Contract is held to be invalid, void or otherwise unenforceable, to any extent, by any court of competentjurisdiction, the remainder of this Lien Contract shall not be affected thereby, and each term, provision, covenant or condition of this Lien Contract shall be valid and enforceable to the fullest extent permitted by law.
&67.6 Counterparts. This Lien Contract may be executed in counterparts, each of which, when taken together, will constitute a fully executed original.

8.—77.7Exhibits and Schedules. All exhibits and schedules attached hereto are incorporated herein by reference.

IN WITNESS WHEREOF, this Lien Contract has been made and executed as of the date ?rst above written.

CITY OF DESERT HOT SPRINGS SKYBORNE VENTURES LLC, a Delaware limited liability company
By: By:

Name: Name:

Title: Title:
347/020269-0040
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Page 234 of 296 ends

STATE OF CALIFORNIA )
)

COUNTY OF )
On ,before me, , Notary Public, personally
appeared who proved to me on the basis of satisfactory
evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorizedcapacity(ies) andthat by his/her/theirsignature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executedthe instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct
WITNESS my hand and official seal.

Signature
I [SEAL]

STATE OF CALIFORNIA )
)

COUNTY OF )
Onjag, before me, e
" , , Notary Public, personally * appeared * E
A who proved to me on the basis of satisfactory
evidence to be the person(s) whose .name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorizedcapacity(ies) and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under”PENALTY OF PERJURY under the laws of the State of California that the E foregoing paragraph is true and correct
WITNESS my hand and official seal.

Signature
[SEAL]
347/020269-0040
l036916.07 a08/07/23 ‘S’

Page 235 of 296 ends

EXHIBIT “A”

PROPERTY
6 PARCEL3: (APN'S:667-300-001THROUGH054, 058; 667-310-001THROUGH084 AND088; 667-320-001THROUGH026, 029 THROUGH078, 080 THROUGH083 AND667-330-001 THROUGH013, 015 THROUGH072 AND076)
LOTS1 THROUGH286 ANDLETFEREDLOTS"0" THROUGH"Z"AND"AA"OFTRACTNO.32030- 3 ASSHOWNONBYMAPON FILEINBOOK419 PAGES29 THROUGH39 OF MAPS,RECORDSOF RIVERSIDECOUNTY,CALIFORNIA.

T PARCEL4:“(APN'S:667-340-001THROUGH048 AND051,’667-350-001THROUGH074 AND078 THROUGH080; AND667-360-001THROUGH060AND064) '
LOTS1 THROUGH182 ANDLEITEREDLOTS"H"THROUGH"S"OFTRACTNO.32030-10,AS I SHOWNBYMAPON FILEIN BOOK419 PAGES40 THROUGH47 OF MAPS,RECORDSOF RIVERSIDECOUNTY,CALIFORNIA.
" PARCEL5: (APN'S:667-080-006,667-100-029,031 AND038)
TENTATIVE(TRACT)MAP32030-4, BEINGASUBDIVISIONOFTHEFOLLOWINGDESCRIBED PROPERTY:

PARCELNO. 1:

THESOUTH*1/2OF-THENORTHWESTV4OF SECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST, ” SANBERNARDINOBASE ANDMERIDIAN, STATE OF CALIFORNIA, ACCORDINGTOTHE OFFICIALGOVERNMENTPLATTHEREOF.
’
I ‘A.ANYANDALL*(I)OILRIGHTS,(II) MINERALRIGHTS,(III) NATURALGASRIGHTS,(IV)

RIGHTSTOSALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(V)GEOTHERMAL

EXHIBIT A
?3Z2°921°§.33’§§§/$7/23 TO LIEN CONTRACT

Page 236 of 296 ends

STOREANDREMOVEANYOFTHESUBSURFACERESOURCESONORFROMTHEPROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTO WHIPSTOCKOR DIRECTIONALLYDRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,

THROUGHORACROSSTHESUBSURFACEOFTHEPROPERTY,ANDTO BOTTOMSUCH , WHIPSTOCKEDC OR DIRECTIONALLYDRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL, RETUNNEL, EQUIP,

MAINTAIN, REPAIR,DEEPENANDOPERATEANYSUCHWELLSOR MINES,BUTWITHOUTTHE

RIGHTTO DRILL,MINE,EXPLORE,OPERATE,PRODUCE,STOREORREMOVEANYOFTHE SUBSURFACERESOURCESTHROUGHOR INTHESURFACEOFTHEPROPERTYORTHEUPPER . —
I FIVEHUNDRED(500) FEETOFTHESUBSURFACEOFTHEPROPERTY.)
PARCELNO. 2:

THESOUTHWEST?‘/4:OF— SECTION28,TOWNSHIP2 SOUTH,RANGE4 EAST,SANBERNARDINO I BASEANDMERIDIAN,‘STATEOFCALIFORNIA,CCORDINGTO THEOFFICIALGOVERNMENT PLATTHEREOF.
” EXCEPTINGTHEREFROMTHEEAST‘/2OFTHESOUTHWEST‘/4.

A ALSOAEXCEPTING’/THEREFROM THEEAST1/2OFTHENORTHEAST‘/1OFTHENORTHWEST‘/4 OFTHESOUTHWEST‘/4OFSAIDSECTION.

A :A ,:ALSO—EXCEPTINGTHEREFROMTHESOUTHERLY40 FEETCONVEYEDTO THECOUNTYOF “RIVERSIDEBYFDEEDFILEDFORRECORDJULY26,1949 AS INSTRUMENT NO.3081 OF A OFFICIALRECORDSOF RIVERSIDECOUNTY,CALIFORNIA. , A
I EXCEPTINGTHEREFROMANYPORTIONLYINGWITHINTRACT32030-1 ASSHOWNONFILEIN 7 BOOK404 PAGES067THROUGH75 OFMAPS,RECORDSOF RIVERSIDECOUNTY,CALIFORNIA. — ALSOEXCEPTINGTHEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC.,A COLORADOCORPORATIONBYDOCUMENT RECORDEDOCTOBER13, 2006,ASINSTRUMENT ‘NO.20060-0756951OFOFFICIALRECORDSOF SAIDCOUNTY.SAIDINTERESTIS FURTHER DESCRIBEDAS FOLLOWS:

A
-. . :A; ANY;ANDIALL’(I)LOIL-RIGHTS, (II) MINERALRIGHTS,(III) NATURALGASRIGHTS,(IV) ” RIGHTSTOALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(V)GEOTHERMAL

UNDERTHATCERTAINREALPROPERTYSITUATEDIN THECOUNTYOFRIVERSIDE,STATEOF CALIFORNIADESCRIBEDIN EXHIBIT"A"'ATTACHEDHERETOANDINCORPORATEDHEREIN (THE"PROPERTY"),TO THEEXTENTSUCHSUBSURFACERESOURCESHAVENOTBEEN PREVIOUSLYRESERVED;AND
347/020269-0040
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Page 237 of 296 ends

B.THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,

STOREANDREMOVEANYOFTHESUBSURFACERESOURCESONORFROMTHEPROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTOWHIPSTOCKORDIRECTIONALLYDRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,

THROUGHOR ACROSSTHESUBSURFACEOFTHE PROPERTY,ANDTO BOTTOMSUCH

WHIPSTOCKEDORDIRECTIONALLYDRILLEDWELLS,TUNNELSANDSHAFFSWITHINOR

I BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL,RETUNNEL, EQUIP,

MAINTAIN,REPAIR,DEEPENANDOPERATEANYSUCHWELLSOR MINES,BUTWITHOUTTHE

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

SUBSURFACERESOURCESTHROUGHORINTHESURFACEOFTHEPROPERTYORTHEUPPER FIVEHUNDRED(500) FEETOFTHESUBSURFACEOF THEPROPERTY.)
PARCELNO.3:
4 THEEAST‘/2OFTHESOUTHWEST1/4,ANDTHEEAST‘/2OFTHENORTHEAST‘/4OFTHE NORTHWEST‘/4OFTHESOUTHWEST‘/4OFSECTION28, TOWNSHIP2 SOUTH,RANGE4 EAST,

SANBERNARDINOBASEANDMERIDIAN,STATEOF CALIFORNIA, ACCORDINGTOTHE OFFICIALGOVERNMENTPLATTHEREOF. ”
EXCEPTING‘ THEREFROMTHESOUTHERLY40 FEETASCONVEYEDTO THECOUNTYOF RIVERSIDE,BYDEEDRECORDEDJULY26, 1949 ASINSTRUMENTNO.3081 OFOFFICIAL RECORDSOFRIVERSIDECOUNTY,CALIFORNIA.

EXCEPTING THEREFROMANYPORTIONLYINGWITHINTRACT32030-1ASSHOWNONFILEINF ’ BOOK404PPAGES’67THROUGH75 OF MAPS,RECORDSOFRIVERSIDECOUNTY,CALIFORNIA.

ALSOEXCEPTINGTHEREFROM ANYPORTIONLYINGWITHINTRACT32030-3 ASSHOWNON * FILEINBOOKT419PAGES29THROUGH39 OF MAPS,RECORDSOF RIVERSIDECOUNTY, CALIFORNIA.

A
A
ALSOEXCEPTINGTHEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC.,A I COLORADOCORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2006, AS INSTRUMENT * ; ‘NO.2006-0756951’0FOFFICIALRECORDSOF SAIDCOUNTY.SAIDINTERESTIS FURTHER DESCRIBEDASFOLLOWS:

A: ANYANDALL—(I) OIL RIGHTS,(11)MINERALRIGHTS,(III) NATURALGASRIGHTS,(IV)

I RIGHTSTO ALLOTHERHYDROCARBONSBYWHATSOEVERNAMEKNOWN,(V)GEOTHERMAL -HEATRIGHTSORGEOTHERMALSUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY, (VI)WATERRIGHTSANDCLAIMSORRIGHTSTO WATERAND(VII)ALLPRODUCTSDERIVED ’ FROMANYOFTHEFOREGOING(COLLECTIVELY, "SUBSURFACERESOURCES")LOCATEDINOR

UNDERTHATCERTAINREALPROPERTYSITUATEDINTHECOUNTYOF RIVERSIDE,STATEOF CALIFORNIADESCRIBEDLINEXHIBIT"A"ATTACHEDHERETOANDINCORPORATEDHEREIN 7 (THE"PROPERTY"), TOTHEEXTENTSUCHSUBSURFACERESOURCESTHAVE NOTBEEN PREVIOUSLYRESERVED,‘ AND A
B.THEPERPETUALRIGHTTODRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE,

STOREANDREMOVEANYOFTHESUBSURFACERESOURCESONORFROMTHEPROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTO WHIPSTOCKOR DIRECTIONALLYDRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO,

THROUGHORACROSSTHESUBSURFACEOF THEPROPERTY,ANDTO BOTTOMSUCH

WHIPSTOCKEDOR DIRECTIONALLYDRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL,RETUNNEL, EQUIP,

MAINTAIN,REPAIR,DEEPENANDOPERATEANYSUCHWELLSORMINES,BUTWITHOUTTHE 347/020269-0040
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Page 238 of 296 ends

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

SUBSURFACERESOURCESTHROUGHOR INTHESURFACEOFTHEPROPERTYORTHEUPPER FIVEHUNDRED(500) FEETOFTHESUBSURFACEOFTHEPROPERTY.)
PARCEL6: (APN'S:667-100-029,031 AND038; 667-120-051,052, 025 THROUGH027) TENTATIVE(TRACT)MAP32030-5,BEINGASUBDIVISIONOFTHEFOLLOWINGDESCRIBED PROPERTY:

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

BASEANDMERIDIAN, STATEOFCALIFORNIA,CCORDINGTO THEOFFICIALGOVERNMENT PLATTHEREOF.

EXCEPTINGTHEREFROMTHEEAST‘/2OFTHESOUTHWEST‘/4.

I — ALSOEXCEPTINGTHEREFROMTHEEAST‘/2OFTHENORTHEAST‘AOFTHENORTHWESTMI OFTHESOUTHWEST‘/4OF SAIDSECTION.

I - ETALSOEXCEPTINGTHEREFROMTHESOUTHERLY40 FEETCONVEYEDTOTHECOUNTYOF I "’"'fRIVERSIDE:BYDEEDFFILEDFORRECORDJULY26, 1949 AS INSTRUMENTNO.3081 OF 0 OFFICIALRECORDSOFRIVERSIDECOUNTY,CALIFORNIA. ”ALSOEXCEPTINGLTHEREFROM ANYPORTIONLYINGWITHINTRACT32030-1 ASSHOWNON FILEIN BOOK404,PAGES67 THROUGH75, OFMAPS,RECORDSOF RIVERSIDECOUNTY, CALIFORNIA. I
*
A TAALSOEXCEPTINGTHEREFROMALLTHATINTERESTCONVEYEDTO DRHENERGY,INC.,A ’ COLORADOCORPORATIONBYDOCUMENTRECORDEDOCTOBER13, 2006, ASINSTRUMENT A. NO.2006-075695T1’OF OFFICIALRECORDSOF SAIDCOUNTY.SAIDINTERESTIS FURTHER DESCRIBEDAS FOLLOWS:
’ ” "ATANYANDALL(I)’OIL’-RIGHTS, (II) MINERALRIGHTS,(III) NATURALGASRIGHTS,(IV)I ’ 7’ SRIGHTSITOALLOTHERHYDROCARBONS BYWHATSOEVERNAMEKNOWN,(V)GEOTHERMAL I "HEATRIGHTSORGEOTHERMAL SUBSTANCESTHATMAYBEPRODUCEDFROMTHEPROPERTY, ' (VI)WATERRIGHTSANDCLAIMSOR RIGHTSTOWATERAND(VII)ALLPRODUCTSDERIVED ,
I ' ;FROM ANYOFTHELFOREGOING(COLLECTIVELY, "SUBSURFACERSOURCES")LOCATEDINOR ’ " UNDERTHATCERTAINREALPROPERTYSITUATEDINTHECOUNTYOFRIVERSIDE,STATEOF ,,CALIFORNIA DESCRIBEDIN EXHIBIT"A"ATTACHEDHERETOANDINCORPORATEDHEREINI (THE'_'PROPERTY"L),“TO THEEXTENTSUCHSUBSURFACERESOURCESHAVENOTBEEN I PREVIOUSLYRESERVED;AND A I — =7-B.THEPERPETUALRIGHTTO DRILL,MINE,EXPLOREANDOPERATEFORANDPRODUCE, A A A * STOREANDREMOVEANYOFTHESUBSURFACERESOURCESONORFROMTHEPROPERTY,

INCLUDINGWITHOUTLIMITATIONTHERIGHTTO WHIPSTOCKORDIRECITONALLYDRILLAND

MINE,FROMLANDSOTHERTHANTHEPROPERTY,WELLS,TUNNELSANDSHAFTSINTO, THROUGHORAcROss THESUBSURFACEOF THEPROPERTY,ANDTO BOTTOMSUCH

WHIPSTOCKEDOR DIRECTIONALLYDRILLEDWELLS,TUNNELSANDSHAFTSWITHINOR

BEYONDTHEEXTERIORLIMITSOFTHEPROPERTY,ANDTO REDRILL,RETUNNEL, EQUIP,

MAINTAIN,REPAIR,DEEPENANDOPERATEANYSUCHWELLSORMINES,BUTWITHOUTTHE

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

SUBSURFACERESOURCESTHROUGHOR INTHESURFACEOFTHEPROPERTYORTHEUPPER 347/020269-0040
103691607a08/07/23 '4"

Page 239 of 296 ends

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 —

Page 240 of 296 ends

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.

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

Page 241 of 296 ends

Desert Hot Springs City CouncilAugust 9, 2023

Desert Hot Springs City Council
August 9, 2023