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HomeMy WebLinkAboutD-1913 3987 Orcutt Road Recorded 04/03/2012. . .... ................. City Of sAn, tu% OBIS 990 Palm Street, San Luis Obi, JULIE RODEWALD IF San Luis Obispo County— Clerk/Recorder 4/03/2012 3:48 PM RECORDING REQUESTED BY Recorded at the request of Public ►:.MVP -: 91"KE ��T:.:} City Clerk's Office CITY OF SAN LUIS OBISPO 990 Palm Street San Luis Obispo, CA 93401 D o c # : 2012018090 Titles: 1 Pages: 41 Fees 0.00 Taxes 0.00 Others 0.00 PAID $0.00 i This document is recorded for the benefit of the City of San Luis Obispo, A Municipal Corporation, and is exempt from fee per Government Code Sections 27383. CERTIFICATE OF ACCEPTANCE — DEED OF OPEN SPACE AND AGRICULTURAL EASEMENT PARSONS, HELPHENSTINE, ESAJIAN ��The City of San Luis Obispo is committed to include the disabled in all of its services, programs and activities. Telecommunications Device for the Deaf (805) 781 -7410. / i O/3 0 qb CERTIFICATE OF ACCEPTANCE * * * * * * * * * * ** THIS IS TO CERTIFY that the interest in real property conveyed by DEED OF OPEN SPACE AND AGRICULTURAL CONSERVATION EASEMENT, dated March 24, 2012, by and between BARBARA PARSONS, Trustee of the Barbara Parsons Trust Under Agreement Dated January 28, 2000, JEANNE HELPHENSTINE, an unmarried woman, and GARY E. ESAJIAN AND ELENE P. ESAJIAN, Co- Trustees of the Gary E. Esajian and Elene P. Esajian Family Trust Under Declaration of Trust, dated June 29, 2006, ( "Grantor"), and the CITY OF SAN LUIS OBISPO, a municipal corporation, is hereby accepted by the undersigned officer on behalf of the City Council pursuant to authority conferred by Resolution No. 5870 (1984 Series) recorded June 15, 1984, in Volume 2604, Official Records, Page 878, San Luis Obispo County, California, and Grantor hereby consents to .recordation thereof by its duly authorized officer or his agent. Date: T�c,4,, 30 yon Z CITY OF SAN LUIS OBISPO by: owell Marx, Mayor ATTEST`. Elaina Cano, City Clerk 0 % RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO: CITY ATTORNEY CITY OF SAN LUIS OBISPO 990 PALM STREET SAN LUIS OBISPO, CA 93401 OPEN SPACE AND AGRICULTURAL CONSERVATION EASEMENT THIS, OPEN SPACE AND AGRICULTURAL CONSERVATION EASEMENT ( "Easement') dated tW-C i % ;; 2012 by BARBARA PARSONS, Trustee of the Barbara Parsons Trust Under Agreement dated January 28, 2000, JEANNE HELPHENSTINE, an unmarried woman and GARY E. ESAJIAN and ELENE P. E-SAJIAN, Co-Trustees of The Gary E. Esajian and Elene P. Esajian Family Trust Under Declaration of Trust, dated June 29, 2006, having a mailing address at 4650 Portola Road, Atascadero, CA 93.422 (collectively "Owner'), San Luis Obispo, CA. 93401 ( "Owner "), in favor of the City of San Luis Obispo, a chartered municipal corporation of the State of California, having an address at 990 Palm Street, San Luis Obispo, CA 93401 ( "City "), is made with respect to the following: RECITALS WHEREAS, Owner is the owner of certain real property (the "Property ") consisting of several assessor's parcels in'the County of San Luis Obispo more particularly described in Exhibit "A" and as shown on Exhibit "B" attached hereto and incorporated herein, commonly known as 3987.Orcutt Road, San Luis Obispo; and WHEREAS, the Property has certain agricultural resources, natural scenic beauty and'existing openness; and WHEREAS, placement of an open space and agricultural conservation easement on a portion of the Property was required by the San Luis Obispo County Local Agency Formation Commission (LAFCo) pursuant to Condition of Approval No. A, which approved annexation of nearby land into the City of San Luis Obispo, in order to meet specific conditions of said annexation under the policies of the LAFCo; and WHEREAS, City is a chartered municipal corporation of the State of California' that is authorized to accept Conservation Easements; and WHEREAS, both Owner and City desire to preserve and conserve for the public benefit the natural scenic beauty and existing openness, natural condition and agricultural use of the Property; and 278022_4.dots r • WHEREAS, the Owner has offered to dedicate this open space and agricultural conservation easement to preserve the site's beauty and existing openness by restricting Owner's use of and activities on the Subject Property through the imposition of a perpetual open space and agricultural conservation easement with the terms and conditions hereinafter set forth. NOW THEREFORE, in consideration of the above recitals, and in further consideration of the mutual promises, covenants and the conditions herein contained, the parties agree asfollows: AGREEMENT 1. Grant. of Easement. Owner hereby grants and conveys to the City a conservation easement in perpetuity over that portion of the Property described in Exhibit "C "_ and as shown on Exhibit—"D-". excepting therefrom any areas required for development of infrastructure incident to development of the Property, including but not limited to roads, sidewalks, landscaping and utility lines ( "Property Infrastructure "). Such area shall be referred to hereinafter as the "Easement Area ". The grant of this Easement conveys to the City an estate and interest in the Easement Area. s 2. Purpose. The purpose of this Easement is to allow the portion of the Property commonly known as and identified in the Orcutt Area Specific Plan ( "Plan ") as the Righetti Home Site ( "Righetti Homesite ") to remain in private ownership while limiting development of the Easement Area, and to otherwisd restrict use of the Properly as set forth herein. 3. Allowable and_Prohibited.AcfiVities and _Uses on Property., 3.1. Allowable. _Uses. Allowable uses on this parcel include agriculture, farmhouses, secondary dwellings, recreational horse ranch, and other passive or active recreational uses. In accordance with the terms of the Orcutt Area Specific Plan, Owner retains the right to the existing number of structures onsite (two independent residential units, outbuildings, and related structures) and will manage the Easement Area in accordance with City standards for Open Space areas. In accordance with applicable City codes and permits, construction of new facilities which support these ,uses will be allowed. 3.2. Prohibited_Activities and Uses on Property. The following activities and uses are prohibited in the Easement Area: 3.2.1. New Construction. The construction or placement of any building or structure is prohibited in the Easement Area except those that are consistent with the allowable uses described above, including but not limited to equipment sheds, irrigation systems, fencing, and improvements for agricultural production purposes and the sale of farm products and any structures permitted under Public Resources Code § 10262. All such structures and improvements, individually and combined, must be consistent with the provisions of this Easement and Public Resources Code § 10262. Any such structures proposed to be built or placed within the Easement Area shall be subject to applicable City approvals. 3.2.2. Signage. No permanent signs, billboards, or similar structures or devices or advertising may be located on or in the Easement Area except those advertising the sale of agricultural goods or products. 278022.4.do 2 0 % 3.2.3." Mining. No extraction of surface or subsurface natural resources (except water resources) shall be permitted in the Easement Area. 3.2.4. Subdivision. The Easement Area may be part of a subdivision which results in a legal lot being ? created having boundaries corresponding to the boundaries of the Easement Area but may not be subdivided further. 4. Retained Rights.: Owner shall retain and reserve the following rights: 4.1. All water rights of any kind or nature and all rights incidental thereto (including but not limited to rights to construct water supply systems and pipelines to direct water) on the Property, including the Easement Area. 4.2. The right to perform any act on the Property, including the Easement Area, not specifically prohibited or limited by this Easement. These rights include, but are not limited to; the right to exclude any member of the public from trespassing and the right to sell, lease, or otherwise transfer the Property, including the Easement Area, to anyone of Owner's choosing. 5. Additional Obligations. Other than as provided herein, this Easement is not intended to impose any legal or other responsibility on the City, or in any way to affect any existing obligation of the Owner as the owner of the Property including the Easement Area. 6. Taxes. Owner shall pay all taxes, assessments, fees, and charges of whatever description levied on or assessed against the Property by competent authority, including any taxes imposed upon, or incurred as a result of, this Easement (collectively "Taxes'), and shall furnish City with satisfactory evidence of payment upon request subject to the right to contest any Taxes. Should City ever pay any Taxes on the Property or the Easement Area, or should City levy on Owner's interest to protect City's interests in the Property or the Easement Area, Owner will reimburse City for the same. 7. .Maintenance. The Owner shall be solely responsible for the upkeep and maintenance of the Property including the Easement Area, to the extent it may be required by law. The City shall have no obligation for the upkeep or maintenance of the Property of the Easement Area. 8. City'sRemedie&, City shall have the right to prevent and correct violations of the terms of this Easement. If City determines that Owner is in violation of the terms of this Easement or that a violation is threatened, City shall give written notice to Owner of such violation and demand corrective action sufficient to cure the violation and, where the, violation involves injury to the Easement Area resulting from any use or activity inconsistent with the purpose of this Easement, to restore the portion of the Easement Area so injured. If Owner fails to cure the violation within thirty (30) days after receipt of notice thereof from City, or, under circumstances where the violation cannot reasonably be cured within a thirty (30) -day period, fails to begin curing such violation within the thirty (30) -day period, or fails to continue diligently to cure such violation until finally cured, City may bring an action at law or in equity in a court of competent jurisdiction to enforce the terms of this Easement, to enjoin the violation, ex parte as necessary, by temporary or permanent injunction, to recover any damages to which it may be entitled for violation of the terms of this Easement or injury to any conservation values protected by this Easement, including damages for the loss of scenic, aesthetic, or environmental values, and to require the restoration of the Easement Area to the condition that 278022 Ado= a % existed prior to any such injury. Without limiting Owner's liability therefore, City, in its sole discretion, may apply any damages recovered to the cost of undertaking any correction action on the Easement Area. If City, in its sole discretion, determines that circumstances require immediate action to prevent or mitigate significant damage to the conservation values of the Easement Area, City may pursue its remedies under this Section without prior notice to Owner or without waiting for the period provided for cure to expire. City's rights under this Section apply equally in the event of either actual or threatened violation of the terms of this Easement, and Owner agrees that City's remedies at law for any violation of the terms of this Easement are inadequate and that City shall be entitled to the injunctive relief described in this Section, both prohibitive and mandatory, in addition to such other relief to which City may be entitled, including specific performance of the terms of this Easement, without the necessity of proving either actual damages or the inadequacy of otherwise available legal remedies. City's remedies described in this Section shall be cumulative and shall be in addition to all remedies now or hereafter existing at law or in equity. 9. Costs of Enforcement. Any costs incurred by City in enforcing the terms of this Easement against Owner, including, without limitation, costs of suit and attorneys' fees, and any costs of restoration necessitated by Owner's violation of the terms of this Easement shall be borne by Owner. If Owner prevails in any action to enforce the terms of this Easement, Owner's costs of suit, including, without limitation, attorneys' fee, shall be borne by City. If City prevails in any action to enforce the terms of this Easement, City's costs of suit, including without limitation, attorneys' fees, shall be borne by Owner. 10. City's Discretion. Enforcement of the terms of this Easement shall be at the discretion of City, and any forbearance by City to exercise its rights under this Easement in the event of any breach of any term of this Easement by Owner shall not be deemed or construed to be a waiver by City of such term or of any of City's rights under this Easement. No delay or omission by City in the exercise of any right or remedy upon any beach by Owner shall impair such right or remedy or be construed as a waiver. . 11. Waiver of Certain Defenses. Owner and City hereby mutually waive any defense of laches, estoppel, or prescription. 12. Acts Beyond Owner's Control . ;r Nothing contained in this Easement shall be construed to entitle City to bring any action against Owner for any injury to or change in the Property resulting from causes beyond Owner's control, including, without limitation, fire, flood, storm, and earth movement, or from any prudent action taken by Owner under emergency conditions to prevent, abate, or mitigate significant injury to the Property resulting from such causes. 13. Termination or Extinguishment. Termination of the Easement shall be governed by Sections 10270 -10277 of the Public Resources Code of California. 14. Condemnation.- Termination of this Easement through condemnation is subject to the requirements of Section 10261 of the Public Resources Code. If the Easement is taken, in whole or in part, by exercise of the power of eminent domain, City shall be entitled to compensation in accordance with applicable law. Should the Easement be condemned or otherwise terminated on any portion of the Easement Area, the balance of the Easement Area shall remain subject to this Easement. In this event, all relevant related documents shall be updated and re- recorded by the City to reflect the modified Easement Area. s78mz 4A= 4 15. Transfer by City. City may transfer the, Easement to: a) a private nonprofit organization that, at the time of transfer, is a "qualified organization" under Section 170(h) of the U.S. Internal Revenue Code and under Section 815.3(a) of the Civil Code of California and has similar purposes to preserve farmland, as well as agreeing to assume the responsibilities imposed by this Easement; b) if no such private nonprofit organization is willing to assume the responsibilities imposed by this Easement, then the Easement may be transferred to any public agency authorized to hold interests in real property as provided in section 815.3(b) of the Civil Code of California. Such a transfer may proceed only if the organization or agency expressly agrees to assume the responsibility imposed on the City by this Easement. If the City ever ceases to exist or no longer qualifies under Section 170(h) of the U.S. Internal Revenue Code, or applicable state law, a court with jurisdiction shall, upon consultation with the California Department of Conservation, transfer this Easement, pursuant to the California Public Resources Code Section 10235(b), to another qualified organization, as defined in Section 815.3 of the Civil Code of California, and having similar,purposes that agrees to assume the responsibility imposed by this Easement. 16. No Approval. No provision of this Agreement shall constitute governmental approval of any improvements, construction or other activities which may be permitted under this Easement. 17. Perpetuity. The Easement created by this Agreement pursuant to Civil Code section 815.1 shall run with the land in perpetuity. 18. Subsequent .Transfers. Owner agrees to give written notice to City of the transfer of any interest in the Easement Area within thirty (30) days following to the date of such transfer. The failure of Owner to perform any act required by this section shall not impair the validity of this Easement or limit its enforceability in any way. 19. Certificates. Upon request by Owner, City shall within twenty (20) days execute and deliver to Owner any document, including an estoppel certificate, which certifies Owner's compliance with any obligation of Owner contained in this Easement and otherwise evidences the status of this Easement as may be requested by Owner. 20. Hazardous- Waste. Owner warrants that Owner has no actual knowledge of a release or threatened release of hazardous substances or wastes on the Easement Area and hereby promises to defend and indemnify City against all litigation, claims, demands, penalties and damages, including reasonable attorneys' fees, arising from or connected with any release of hazardous waste or violation of federal, state or local environmental laws. Notwithstanding any other provision herein to the contrary, the parties do not intend this Agreement be construed such that it creates in or gives the City: 20.1. the obligations or liability of an uowner or "operator as those words are defined and used in environmental laws, as defined below, including, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (42 USC section 9601 et seq. And hereinafter "CERCLA "); 20.2. the obligations or liability of a person described in 42 USC section 9607 (a)(3) or (4); 278022, 4.d= 5 a ft 20.3. the obligations of a responsible person under any applicable Environmental Laws, as defined below; 20.4. the right to investigate and remediate any Hazardous Materials, as defined below, associated with the Subject Property; or 20.5. any control over Owner's ability to investigate, remove, remediate, or otherwise clean up any Hazardous Materials associated with the Subject Property. The term "Hazardous Materials" includes, without limitation, (a) material that is flammable, explosive, or radioactive; (b) petroleum products; and (c) hazardous materials, hazardous wastes, hazardous or toxic substances, or related materials defined in the CERCLA (42 USC section 9601 et seq.), the Hazardous Materials Transportation Act (49 USC section 5101, et seq.); the Hazardous Waste Control Law (California Health and Safety Code section 25100 et seq.), and in the regulations adopted and publications promulgated pursuant to them, or any other applicable federal, state, or local laws, ordinances, rules, or regulations now in effect or enacted after this date. The term "Environmental Laws" includes, without limitation, any federal, state or local or administrative agency statute, regulation, rule, ordinance; order or requirement relating to pollution, protection of human health, the environment or Hazardous Materials. 21. Representations and Warranties. Owner represents and warrants that Owner has good fee simple title to the Property, free from any and all liens or encumbrances, except those set forth on the preliminary title report attached as Exhibit "E ". Owner represents and warrants that the Property is not subject to any other conservation easement whatsoever. Owner may grant subsequent conservation easements on the Easement Area, provided that such subsequent easements are for the purpose of wetland, wildlife habitat or biological resource creation, enhancement or preservation. City shall be notified in advance, in writing,, of any proposed conservation or other easement on the Property. 22. Notices. Any notice, demand, request, consent, approval, or communication that either party desires or is required to give to the other shall be in writing and either served personally or sent by first class mail, postage prepaid, addressed as follows: To Owner: Barbara Parsons 4650 Portola Road Atascadero,,CA 93422 To City: Ms. Katie Lichtig, City Manager City of San Luis Obispo 990 Palm Street San Luis Obispo, CA 93401 or to such other address as either party from time to time shall designate by written notice to the other. 279022_4d- 6 0 * 0 23. Recordation. City shall record this instrument in a timely fashion in the official records of San Luis Obispo County, California, and may re- record it at any time as may be required to preserve its rights in this Easement. 24. Amendment. This Easement may be amended only with the written consent of the Owner and City in accordance with applicable law. Any such amendment shall be consistent with the purposes of this Agreement and with the City's easement amendment policies, and shall comply with Section 170(h) of the Internal Revenue Code, or any regulations promulgated in accordance with that section, and with Section 815 et seq. of the Civil Code of California, or any regulations promulgated thereunder.. Any amendment to this Easement shall be recorded in San Luis Obispo County. 25. General Provisions. 25.1. Controlling Law. The interpretation and performance of this Easement shall be government by the laws of the _ State of California. 25.2. Liberal Construction. Any general rule of construction to the contrary notwithstanding, this Easement shall be liberally construed in favor of the grant to effect the purpose of this Easement and the policy and purpose of the Conservation Act of 1979 as described in Sections 815 through 816 of the California Civil Code. If any provision in this instrument is found to be ambiguous, an interpretation consistent with the purpose of this Easement that would render the provision valid shall be favored over any interpretation that would render it invalid. 25.3. Severability. If any provision of this Easement, or the application thereof to any person or circumstance, is found to be invalid, the remainder of the provisions of this Easement, or the application of such provision to persons or circumstances other than those as to which it is found to be invalid, as the case may be, shall not be affected thereby. 25.4. Entire Agreement. This instrument sets forth the entire agreement of the parties with respect to the Easement and supersedes all prior discussions, negotiations, understandings, or agreements relating to the Easement, all of which are merged herein. 25.5. Successors. The covenants, terms, conditions, and restrictions of this Easement shall be binding upon, and inure to the benefit of, the parties hereto and their respective personal representatives, heirs, successors, and assigns and shall continue as a servitude running perpetually with the Property. Every provision of this Agreement that applies to the Owner or City shall also apply to their respective agents, heirs, executors, administrators, assigns, and all other successors as their interests may appear. No merger of title, estate or interest shall be deemed effected by any previous, contemporaneous, or subsequent deed, grant, or assignment of an interest or estate in the Property, or any portion thereof, to City, or its successors or assigns, it being the express intent of the parties that this Easement not be extinguished by, or merged into, or any other interest or estate in the Property now or hereafter held by City or its successors or assigns. 25.6. Captions. The captions in this instrument have been inserted solely for convenience of reference and are not a part of this instrument and shall have no effect upon construction or interpretation. 25.7. Counterparts. The parties may execute this instrument in two or more counterparts, which shall, in -the aggregate, be signed by both parties; each counterpart shall be 278022 4.d= deemed an original instrument as against any party who has signed it. In the event of any disparity between the counterparts produced, the recorded counterpart shall be controlling. 26. City's Acknowledgement. As attested by the signature of its Mayor affixed hereto, in exchange for consideration, the City hereby accepts without reservation the rights and responsibilities conveyed by this Easement. IN WITNESS WHEREOF, the parties hereto have executed this document on the day and year first written above. "City" "Owner" THE CITY OF SAN LUIS OBISPO The Barbara Parsons Trust Under Agreement dated January 28, 2000 By:.. By: Ja owell Marx, Mayor Barbara Parsons, Trustee eanne Helphenstin The Gary E. Esajian and Elene P. Esajian Family Trust Unde ecl ation of Trust dated June 2�. �� V L - By:. - - - 0 Elene P. Esajian, Co-Trustib • L:i CERTIFICATE OF ACKNOWLEDGMENT OF NOTARY PUBLIC STATE OF CALIFORNIA }ss. COUNTY OF . OnVYhn ;.2012, before me, Lisa M. Borba, Notary Public Notary Public (her'e insert name and title of the officer), personally appease co - who proved to me on the basis. of satisfactory evidence to be the:f)ersonW Nwhose nam W is/ke subscribed to the within instrument and acknowledged to me that heft /*y. executed the same in his/AW /tbtir authorized capacity(*),. and that by his /h* /t*F signature(*, on the instrument the person(, or the entity upon behalf of which the personQg) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. ice: �• �� 1�+ tariPublic LISA M. BORBA NOTARY PUBLIC - CALIFORNIA COMMISSION O 1952992 KINGS COUNTY My Comm. Exp. September 19, 2015 CERTIFICATE OF ACKNOWLEDGMENT OF NOTARY PUBLIC STATE OF CAL_ RNIA )ss.: COUNTY OF nQA On f) �q , 2012, before me, ma M Borba NgM Public , Notary Public (here Insert naive and title of the officer), personally appeared ' who proved to me on the basis of.satisfactory evidence to be the person(jq\whose name (o is/ae subscribed to the within instrument and acknowledged to me that ) Ushe/tbey executed the same in M her /their authorized capacity(ss), and that by 49/her /trig signature(s) on the instrument the person(, or the entity upon .behalf of which the persons acted, executed the instrument. I certify under PENALTY OF .PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. WITNESS my hand and official seal. o Public LISA M. so NOTARY PUBLIC - CALIFORNIA COMMISSION 1962982 KINGS COUNTY My Comm..Exp. September 19, 2ols 9 278022_4.dom • • CERTIFICATE OF ACKNOWLEDGMENT OF NOTARY PUBLIC STATE OF C O COUNTY OF S l5 }ss. ' On -. - 2012, before me,:_ -__ N ����_ Notary Public (here insert name and title of the officer), personally appealed; _ — w. who proved to me on the basis of satisfactory evidence to be the persons) whose names) is/are subscribed to the within instrument and acknowledged to me that he /she/they executed the same in his/her /their authorized capacity(ies), and that by his /her /their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. ANN TAMBERELLA Commission # 1853249 Notary Public - California D San Luis Obispo County My Comm. Expires Jul 2, 2013 CERTIFICATE OF ACKNOWLEDGMENT OF NOTARY PUBLIC STATE OF �O COUNTY OF �� - On 12 r7 2012, before me, _ Notary Public (heqi ert name and title of the officer), personally appeared - _ who proved to me on the basis of satisfactory evidence to be the person(s) whose riame(s).is /are subscribed to the within instrument and acknowledged to me that he /she /they executed the same in his /her /their authorized capacity(ies), and that by his/her /their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed -the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and ANN TAMBERELLA a .m Notary Public - California D Z t� San Luis Obispo County j My 1 Commission # 1853249 Comm. Expires Jul 2, 2013 10 2790224.d6= • �J CERTIFICATE OF ACKNOWLEDGMENT OF NOTARY PUBLIC STATE OF CALIFORNIA } ss. COUNTY OF S4W L -U4 5 QQ/ s On rr4 r - / 3 , 2012; before me, � �+' — �i�Z�JS , Notary Public (here insert name and title of the officer), personally appeared Gi o iuel / Cif K . , who proved to me on the basis of satisfactory evidence to be the person() whose name() Mare subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his4eftheir authorized capacityli ), and that by hisAg /their signatures on the instrument the person(, or the entity upon behalf of which the person(s) acted, executed the instrument. I certify-under PENALTY OF PERJLJRY under the laws of the State of California that the foregoing paragraph is true and :correct: WITNESS my hand and official seal. Notary'Public 278D52_4:docii CLAUDIA PROWS Comndaaion f 1853990 - ' Notary Public - California i San Luis Obispo Cres ounty M Comm. Jun 14, 2013 11 M EXHIBIT "A" Legal Description of Property (to be attached) 278022_4.docx N EXHIBIT "A" L-:-77 LEGAL DESCRIPTION RIGHETTI HOMESTEAD PROPERTY All of that real property in the City of San Luis Obispo, County of San Luis Obispo, State of California described as follows: All of that parcel of land identified as "Remainder of Por Sec 6 T31 S RI 30' as shown on that Record of Survey recorded September 29`', 1998 . in Book 77 of Licensed Surveys at page 43 in the office of the San Luis Obispo County Recorder and described in the Certificate of Compliance in Book 3181 of Official Records at Page 649. END OF DESCRIPTION ���QRvTROe � a J c3 C55151 EXP oFCAUF° ���f ra- 275022_4.doa EXHIBIT "B" Plat Map (to be attached) M �I �� II J29 I i 7 �I II II REMAINDER Or FOR SEC o I 731S R 3E I \ (3"J3J -OR -o 9 I. \ �I � I® Roe J \\ I W 55 0: EXP la- i�r 1 w * \ \I �q Will. s EXHIBIT B 0 aoo sw PLAT M ACCOMPANY LEGAL DESCRIPTION Cannon RIGHETIY HOYEMEAD PROPERTY QTY OF SAN LUIS OMSPO, CNJFOMA 1 INCH = 200 FEET ORAMM BY 04Ea® By S. DATE RJ SR 1 O1 ♦ 2, EXHIBIT "C" Legal Description of Easement Area (to be attached) 278022_4.doc EXHIBIT "C" LEGAL DESCRIPTION RIGHETTI HOMESTEAD OPEN SPACE AND CONSERVATION EASEMENT All of that real property in the City of San Luis Obispo, County of San Luis Obispo, State of California described as follows: A portion of that parcel of land identified as "Remainder of Por Sec 6 T31 S RUE" as shown on that Record of Survey recorded September 291h, 1998 in Book 77 of Licensed Surveys at page 43 in the office of the San Luis Obispo County Recorder more particularly described as follows: BEGINNING at the northeasterly corner of the above described "Remainder of Por Sec 6 T3 IS R13E at an old "20" hub with tack, said corner being the southeasterly corner of the Suburban Tract, also being the southeasterly corner of Lot 129 and a point in the westerly line of Orcutt Road, as shown on the above described Record of Survey; Thence along the northerly line of said "Remainder of Por Sec 6 T31S RI 3E" and southerly line of the above described Lot 129 North 88° 53' 35" West 299.13 feet; Thence leaving said common line along a line parallel with and 250.00 feet westerly of the easterly line of the parcel identified as "Remainder of Por SEC 6 T31 S RI 3E" South 32° 59' 16" East 813.28 feet; Thence South 31° 05' 45" West 469.88 feet; Thence South 00° 45' 34" West 268.37 feet to a point in the northerly Right of Way line of Tank Farm Road as shown on the above described Record of Survey, said line also being the southerly line of the above described "Remainder of Por Sec 6 T31 S R13E "; Thence along said common line the following courses: South 89 ° 05' 25" East 100.43 feet; North 89 ° 55' 28" East 158.88 feet; South 89 ° 26' 18" East 418.59 feet; South 89 ° 21' 50 East 307.58 feet to the southeasterly corner of said "Remainder of Por Sec 6 T31S RUE"; % qb Thence along the easterly line of said "Remainder of Por Sec 6 T31 S R13E ", said easterly line being the westerly line of Orcutt Road North 32° 59'16" West 1596.45 feet; Thence North 38° 39 40" West 21.67 feet to the POINT OF BEGINNING and terminus of this description, containing 15.30 acres, more or less. END OF DESCRIPTION 551 on Exr C10-� ���OFCA1a►�" .�I to I ► a- M EXHIBIT "D" Plat Map of Easement Area (to be attached) 278022_4.doc 3 g e • to / IN / �988s�. / N BEGINNING N38'39'40 "W 21.67' 250' I \ \ lu io LL1 N pi I \ \I M co co 0 V I ' coo. I Z� LL1 y A5 °�N I kb9 I PEN SPACE &/ AGRICULTURAL CONSERVATION \ S89'05'25 "E EASEMENT 100.43' I N8955'28 "E 158.88' \ I S89'26'1 WE � 418.59' I Q��ONFE$$10iy� ROe F� ui m °C EXF'.�. --�1 � 589'2100 E 307.58' 0 2W 4W Cann $ 1 INCH =200 FEET .v..G�, Dum By oueu"r mw,w EXHIBIT PLAT TO ACCOMPANY LEGAL DESC�iIPT SPACE AND AGRICULTURAL CONSERVATION aW OF SM WIS COSK CALM MA Ydl.[ 00' 1' - 2 - RJ SR M » EXHIBIT "Ev 1 Prelilm-itiiry Title Report (to be attached) 278022 4.docx CLTA Preliminary Report Form (Rev. 11/06) a't a d First American Title Jeanne Helphenstine Order Number: 4001 - 3995594 (LI) Page Number: 1 First American Title Company 899 Pacific Street San Luis Obispo, CA 93401. 102 Bridge Street Arroyo Grande, CA 93420 Phone: Fax: Order Number: 4001- 3995594 (LI) Title Officer: Lisa :Irot Phone: (805)786 -2042 Fax No.: (866)397 -7092 E -Mail: lirot @firstam.com Owner: Parsons /Helphenstine /Esajian Property: 3987 Orcutt Road, Bullock Lane San Luis Obispo, CA PRELIMINARY REPORT In response to the above referenced application for a policy of title insurance, this company hereby reports that it is prepared to issue, or cause to be issued, as of the date hereof, a Policy or Policies of Title Insurance describing the land and the estate or interest therein hereinafter set forth, insuring against loss which may be sustained by reason of any defect, lien or encumbrance not shown or referred to as an Exception below or not excluded from coverage pursuant to the printed Schedules, Conditions and Stipulations of said Policy forms. The printed Exceptions and Exclusions from the coverage and Limitations on Covered Risks of said policy or policies are set forth in Exhibit A attached. The policy to be issued may contain an arbitration clause. When the Amount of Insurance is less than that set forth in the arbitration clause, all arbitrable matters shall be arbitrated at the option of either the Company or the Insured as the exclusive remedy of the parties. Limitations on Covered Risks applicable to the CLTA and ALTA Homeowner's Policies of Title Insurance which establish a Deductible Amount and a Maximum Dollar Limit of Liability for certain coverages are also set forth in Exhibit A. Copies of the policy forms should be read. They are available from the office which issued this report. Please read the exceptions shown or referred to below and the exceptions and exclusions set forth in Exhibit A of this report carefully. The exceptions and exclusions are meant to provide you with notice of matters which are not covered under the terms of the title insurance policy and should be carefully considered. It is important to note that this preliminary report is not a written representation as to the condition of title and may not list all liens, defects, and encumbrances affecting title to the land. First American Title MOrder Number: 400.1-3995594 LI Page Number: 2 This report (and any, supplements or amendments hereto) is issued solely for the purpose of facilitating the issuance of a policy of title insurance and no liability is assumed hereby. If it is desired that liability be assumed prior to the issuance of a policy of title insurance, a Binder or Commitment should be requested. First American Title Order Number �4061- 3995594. LI Page Number: 3 Dated as of March 05, 2012 at 7:30 A.M. The form of Policy of title insurance contemplated by this report is: A specific request should be made if another form or additional coverage is desired. Title to said estate or interest at the date hereof is vested in: Barbara Parsons, Trustee of the Barbara Parsons Trust Under Agreement dated Janaury 28, 2000 as to an undivided 29.75% interest; Jeanne Helphenstine, an unmarried woman, as to an undivided 40.5% interest; and Gary E.,Esajian and Elene P. Esajian, Co- Trustees of The Gary . E. Esajian and Elene P. Esajian Family Trust, under Declaration of Trust, dated June 29, 2006 (a Revocable Living Trust), as to an undivided 29.75% interest, all as Tenants in Common The estate or interest in the land hereinafter described or referred to covered by this Report is: A fee. The Land referred to herein is described as follows: (See attached Legal Description) At the date hereof exceptions to coverage in addition to the printed Exceptions and Exclusions in said policy form would be as follows: 1. General and special taxes and assessments for the fiscal year 2012 -2013, a lien not yet due or payable. 2. General and special taxes and assessments for the fiscal year 2011 -2012. First Installment: $1,720.49, PAID Penalty: $0.00 Second Installment: $1,720.49, PAYABLE Penalty: $0.00 Tax Rate Area: 112 -053 A. P. No.: 044 -412 -001 (Affects: Parcel A) 3. General and special taxes and assessments for the fiscal year 2011 -2012. First Installment: Penalty: Second Installment: Penalty: Tax Rate Area: A. P. No.: $5,302.71, PAID $0.00 $5,302.71, PAYABLE $0.00 112 -053 044- 412 -002 (Affects: Parcel B) First American Title Order Number!�4001- 3995594 (LI) Page Number: 4 4. General and special taxes and assessments for the fiscal year 2011 -2012. First Installment: Penalty: Second Installment: Penalty: Tax Rate Area: A. P. No.: $2,281.23, PAID $0:00 $2,281.23, PAYABLE $0.00 - 112 -053 076 - 491 -002 (Affects: Parcels D and E) 5. General and special taxes and assessments for the fiscal year 2011 -2012. First Installment: $501.25, PAID Penalty: $0.00 Second Installment: $501.25, PAYABLE Penalty: $0.00 Tax Rate Area: 112 -053 A. P. No.: 076 -491 -005 (Affects: Portion of Parcel C) 6. General and special taxes and assessments for the fiscal year 2011 -2012. First Installment: Penalty: Second Installment: Penalty: Tax Rate Area: A. P. No.: $830.45, PAID $0.00 $830.45, PAYABLE $0.00 112 -053 076- 491 -008 (Affects: Portion of Parcel C) 7. The lien of supplemental taxes, if any, assessed pursuant to Chapter 3.5 commencing with Section 75 of the California Revenue and Taxation Code. 8. Water rights, claims or title to water, whether or not shown by the public records. 9. An easement for slope maintenance, along railroad right of way line; and incidental purposes, recorded February 3, 1897 in Book 31 of Deeds, Page 409. In Favor of: Southern Pacific Railroad Affects: a portion of said land 10. An easement for water pipes; and incidental purposes, recorded May 13, 1988 as Book 3143, Page 414 of Official Records. In Favor of: City of San Luis Obispo, a Chartered Municipal Corporation Affects: a portion of said land 11. An easement for public road, bicycle lane, slopes; and incidental purposes, recorded July 22, 1997 as Instrument No. 1997 - 038137 of Official Records. In Favor of: County of San Luis Obispo, a political subdivision of the State of California Affects: a portion of said land First American Title Order Numbe#4001- 3995594 (LI) Page Number: 5 12. An easement for public road, bicycle lane; slopes; and incidental purposes, recorded October 9,. 1997 as Instrument No. 1997 - 055770 of Official Records. In Favor of: County of San Luis Obispo, a political subdivision of the State of California Affects: a portion of said land 13. Any facts, rights, interests or claims that may exist or arise by reason of matters, if any, disclosed by that certain Record of Survey filed September 29, 1998 in book 77, page 43 14. Any change, hereto or hereafter, occurring in the location of the boundary line of the land herein described, due to the change in the course of the "Small Gulch" and /or the location of the "Small Gulch" as referred to and tied to in all previous deeds describing said land. Affects: The Northeasterly line of Parcel A. 15. A deed of trust to secure an original indebtedness of $2,060,000.00 recorded January 27; 2006 as Instrument No. 2006 - 006108 of Official Records. Dated: November 30, 2005 Trustor: Gary Esajian, a married man as his sole and separate property Trustee: First American Title Company, a California corporation Beneficiary: Barbara Parsons, Trustee of the Barbara Parsons Trust under agreement dated January 28, 2000 16. The terms and provisions contained in the document entitled Memorandum of Cotenancy Agreement recorded January 27, 2006 as Instrument No. 2006 - 006109 of Official Records. First American Title Order Numb%e4001- 3995594 (LI) Page Number: 6 INFORMATIONAL NOTES Note: The policy to be issued may contain an arbitration clause. When the Amount of Insurance is less than the certain dollar amount set forth in any applicable arbitration clause, all arbitrable matters shall be arbitrated at the option of either the Company or the Insured as the exclusive remedy of the parties. If you desire to review the terms of the policy, including any arbitration clause that may be included, contact the office that issued this Commitment or Report to obtain a sample of the policy jacket for the policy that is to be issued in connection with your transaction. The map attached, if any, may or may not be a survey of the land depicted hereon. First American expressly disclaims any liability for loss or damage which may result from reliance on this map except to the extent coverage for such loss or damage is expressly provided by the terms and provisions of the title insurance policy, if any, to which this map is attached. First American Title go 4 Order Numb4001- 3995594 (LI) Page Number: 7 LEGAL DESCRIPTION Real property in the unincorporated area of the County of San Luis Obispo, State of California, described as follows: Parcel A: (Certificate of Compliance Recorded in. Book 3181, Page 649) (A.P.N.: 044 - 412 -001) A parcel of land lying within Sections 6 and 7 of Township 31 South, Range 13 East, Mount Diablo Meridian, being more particularly described as follows: That portion of the Southwesterly 1/4 of said Section 6, conveyed by Nis M. Jacobson, et ux. to Allen E. Righetti, et ux. described as Parcel 3 and that portion lying Southwest of Orcutt Road described as Parcel 4 in deed recorded August 28, 1944, in Book 365, Page 457 of Official Records, partley in the City of San Luis Obispo and partley in the County of San Luis Obispo, all in the State of California, along with all that portion of Parcel 1 of Parcel Map SLAL87 -220 according to map recorded in Book 42, Page 43 of Parcel Maps, in the office of the County Recorder of said County lying Northerly and Westerly of the following described East -West line: Commencing at the Northwest corner of said Parcel 1; thence along the Southern Pacific Railroad right -of -way North 33 026'04" West 21.67 feet; thence leaving said right -of -way along the following courses: North 89 058'23" East, 559.58 feet; thence South 89 041'14" East, 198.71 feet; thence North 89 031'26" East, 107.75 feet; thence South, 89 000'57" East, 92.74 feet; thence South 89 054'04" East, 267.64 feet; thence South 89 018'00" East, 10.33 feet to a 1 -1/2" iron pipe with tag stamped "RCE 12545" at the corner of Sections 1 and 12 of Township 31 South, Range 12 East, and Sections 6 and 7 of Township 31 South, Range 13 East, Mount Diablo Meridian, as shown on map recorded in Book 42, Page 43 of Parcel Maps, in the office of the County Recorder of said County, said point being the true point of beginning of said East -West line; thence along said East -West line; South 88 041'02" East, 49.78 feet; thence South 89 013'37" East, 85.07 feet; thence South 87 048'54" East, 160.40 feet; thence South 88 004'35" East, 109.46 feet; thence South 88 053'26" East, 101.04 feet; thence North 89 030'56" East, 421.60 feet; thence North 88 031'23" East, 158.93 feet; thence North 89 008'40" East, 418.51 feet; thence North 89 013'08" East, 331.38 feet; thence North 34 018'20" West, 28.05 feet to a 1 -1/2" iron pipe with tag stamped "RCE 12545" as shown on map recorded in Book 42, Page 43 of Parcel Maps, in the office of the County Recorder of said County, also being a point on the Northerly line of said Parcel 1; said point being the point of terminus of said East -West line. Parcel B: (Certificate of Compliance Recorded in Book 3181, Page 645) (A.P.N.: 044 -412 -002) A portion of Lot 130 of San Luis Suburban Tract as shown on map recorded in Book 1, Page 92 of Record of Surveys in the County of San Luis Obispo, State of California: Being that portion of said Lot 130, lying Northerly of the following described East -West line: Commencing at the Northwest corner of Parcel 1 of Parcel Map SLAL'87 -220 as shown on map filed in Book 42, Page 43 of Parcel Maps in the office of the County Recorder of said County; thence along the Southern Pacific Railroad right -of -way North 33 026'04" West 21.67 feet to the true point of beginning of said East -West line; thence leaving said right -of -way along the following courses: North 89 058'23" East, 559.58 feet; thence South 89 041'14" East, 198.71 feet; thence�North First American Title a 4 Order Number'�4001- 3995594 (LI) Page. Number: 8 89 031'26" East, 107.75 feet; thence. South 89 000'57" East, 92.74 feet; thence South 89 054'04" East, 267.64 feet; thence South 89 018'00" East, 10.33 feet to a 1=1/2" iron pipe with tag stamped "RCE 12545" at the corner Sections 1 and 12 of Township 31 South, Range 12 East, and Sections 6 and 7 of Township 31 South, Range 13 East, Mount Diablo Meridian, as shown on map recorded in Book 42, Page 43 of Parcel Maps in the office of the County Recorder. Parcel C: (A.P.N.: 076 - 491 -005 and 076 - 491 -008) Lot 129 of the San Luis Obispo Suburban Tract, in the County of San Luis Obispo, State of California, according to map recorded February 7, 1906 in Book 1 at Page 92 of Record of Surveys in the office of the County Recorder of said County. Parcel D: (A.P.N.: Portion of 076 - 491 -002) Lot 127 of the San Luis Obispo Suburban Tract, in the County of San Luis Obispo, State of California, according to map in Book 1 at Page 92 of Record of Surveys, recorded February 7, 1906 in the office of the County Recorder of said County. Except the Easterly half of said Lot 127 as conveyed to F.P. Hottle by deed recorded November 26, 1906 in Book 73 at Page 173 of Deeds, records of said County. Parcel D -1: An easement for a right of way ten feet wide off the Northerly side of the Easterly half of said Lot 127 to the County Road as said lots and road are shown on the map above referred to. Parcel E: (A.P.N.: Portion of 076 - 491 -002) Lots 131 and 132 of the San Luis Obispo Suburban Tract, in the City of San Luis Obispo, County of San Luis Obispo, State of California, according to the map thereof recorded February 7, 1906 in Book 1 at Page 92 of Record of Surveys, in the office of the County Recorder of said County. APN: 044 - 412 -001 & 002 and 076 - 491 -002, 005 & 008 First American Title MOrder Numb%001- 3995594 (LI) Page Number: 9 NOTICE Section 12413.1 of the California Insurance Code, effective January 1, 1990, requires that any title insurance company, underwritten title company, or controlled escrow company handling funds in an escrow or sub - escrow capacity, wait a specified number of days after depositing funds, before recording any documents in connection with the transaction or disbursing funds. This statute allows for funds deposited by wire transfer to be disbursed the.same day as deposit. In the case of cashier's checks or certified checks, funds may be disbursed the next day after deposit. In order to avoid unnecessary delays of three to seven days, or more, please use wire transfer, cashier's checks, or certified checks whenever possible. If you have any questions about the effect of this new law, please contact your local First American Office for more details. First American Title Order Numbel'�4001- 3995594 (LI) Page Number: 10 EXHIBIT A LIST OF PRINTED EXCEPTIONS AND EXCLUSIONS (BY POLICY TYPE) 1. CALIFORNIA LAND TITLE ASSOCIATION STANDARD COVERAGE POLICY - 1990 SCHEDULE B EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) which arise by reason of: I. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real.property or by the public records. Proceedings by a public agency which may result in taxes or assessments, or notice of such proceedings, whether or not shown by the records of such agency or by the public records. 2. Any facts, rights, interests, or claims which are not shown by the public records but which could be ascertained by an inspection of the land or which may be asserted by persons in possession thereof. 3. Easements, liens or encumbrances, or claims thereof, which are not shown by the public records. 4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the public.records. 5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof, (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the public records. EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of: I. (a) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating to (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. (b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect, lien or encumbrance. resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge. 3. Defects, liens, encumbrances, adverse claims or other matters: (a) whether or not recorded in the public records at Date of Policy, but created, suffered, assumed or agreed to by the insured claimant; (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy; (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy; or (e) resulting, in loss or damage which would not have been sustained if the insured claimant had paid value for the insured mortgage or for the estate or interest insured by this policy. 4. Unenforceability of the lien of the insured mortgage because of the inability or failure of the insured at Date of Policy, or the inability or failure of any subsequent owner of the indebtedness, to comply with applicable "'doing business" laws of the state in which the land is situated. 5. Invalidity or unenforceability of the lien of the insured mortgage, or claim thereof, which arises out of the transaction evidenced by the insured mortgage and is based upon usury or any consumer credit protection or truth in lending law. 6. Any claim, which arises out of the transaction vesting in the insured the estate or interest insured by their policy or the transaction creating the interest of the insured lender, by reason of the operation of federal bankruptcy, state insolvency or similar creditors' rights laws. 2. AMERICAN LAND TITLE ASSOCIATION OWNER'S POLICY FORM B - 1970 SCHEDULE OF EXCLUSIONS FROM COVERAGE I. Any law, ordinance or governmental regulation (including but not limited to building and zoning ordinances) restricting or regulating or prohibiting the occupancy, use or enjoyment of the land, or regulating the character, dimensions or location of any improvement now or hereafter erected on the land, or prohibiting a separation in ownership or a reduction in the dimensions of area of the land, or the effect of any violation of any such law, ordinance or governmental regulation. 2. Rights of eminent domain or governmental rights of police power unless notice of the exercise of such rights appears in the public records at Date of Policy. 3. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed or agreed to by the insured claimant; (b) not known to the Company and not shown by the public records but known to the insured claimant either at Date of Policy or at the date such claimant acquired an estate or interest insured by this policy and not disclosed in writing by the insured claimant to the Company prior to the date such insured claimant became an insured hereunder; (c) resulting in no loss or damage to the insured claimant; (d) attaching or First American Title so Order Number 001- 3995594 (LI) Page Number: 11 created subsequent to Date of Policy; or (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the estate or interest insured by this policy. 3. AMERICAN LAND TITLE ASSOCIATION OWNER'S POLICY FORM B - 1970 WITH REGIONAL EXCEPTIONS When the American Land Title Association policy is used as a Standard Coverage Policy and not as an Extended Coverage Policy the exclusions set forth in paragraph 2 above are used and the following exceptions to coverage appear in the policy. SCHEDULE B This policy does not insure against loss or damage by reason of the matters shown in parts one and two following: 1. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. 2. Any facts, rights, interests, or claims which are not shown by the public records but which could be ascertained by an inspection of said land or by making inquiry of persons in possession thereof. 3. Easements, claims of easement or encumbrances which are not shown by the public records. 4. Discrepancies; conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by public records. 5. Unpatented mining claims; reservations or exceptions in patents or in Acts authorizing the issuance thereof; water rights, claims or title to water. 6. Any lien, or right to a lien, for services, labor or material heretofore or, hereafter furnished, imposed by law and not shown by the public records. 4. AMERICAN LAND TITLE ASSOCIATION LOAN POLICY - 1970 WITH A.L.T.A. ENDORSEMENT FORM 1 COVERAGE SCHEDULE OF EXCLUSIONS FROM COVERAGE I . Any law, ordinance or governmental regulation (including but not limited to building and zoning ordinances) restricting or regulating or prohibiting the occupancy, use or enjoyment of the land, or regulating the character, dimensions or location of any improvement now or hereafter erected on the land, or prohibiting a separation in ownership or a reduction in the dimensions or area of the land, or the effect of any violation of any such law ordinance or governmental regulation. 2. Rights of eminent domain or governmental rights of police power unless notice of the exercise of such rights appears in the public records at Date of Policy. 3. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed or agreed to by the insured claimant, (b) not known to the Company and not shown by the public records but known to the insured claimant either at Date of Policy or at the date such claimant acquired an estate or interest insured by this policy or acquired the insured mortgage and not disclosed in writing by the insured claimant to the Company prior to the date such insured claimant became an insured hereunder, (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy (except to the extent insurance is afforded herein as to any statutory lien for labor or material or to the extent insurance is afforded herein as to assessments for street improvements under construction or completed at Date of Policy). 4. Unenforceability of the lien of the insured mortgage because of failure of the insured at Date of Policy or of any subsequent owner of the indebtedness to comply with applicable "doing business" laws of the state in which the land is situated. S. AMERICAN LAND TITLE ASSOCIATION LOAN POLICY - 1970 WITH REGIONAL EXCEPTIONS When the American Land Title Association Lenders Policy is used as a Standard Coverage Policy and not as an Extended Coverage Policy, the exclusions set forth in paragraph 4 above are used and the following exceptions to coverage appear in the policy. SCHEDULER This policy does not insure against loss or damage by reason of the matters shown in parts one and two following: I . Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. 2. Any facts, rights, interests, or claims which are not shown by the public records but which could be ascertained by an inspection of said land or by making inquiry of persons in possession thereof. 3. Easements, claims of easement or encumbrances which are not shown by the public records. 4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by,public records. 5. Unpatented mining claims; reservations or exceptions in patents or in Acts authorizing the issuance thereof; water rights, claims or title to water. 6. Any lien, or right to a lien, for services, labor or material theretofore or hereafter furnished, imposed by law and not shown by the public records. First American Title NOrder Number X4001- 3995594 (U) Page Number: 12 6. AMERICAN LAND TITLE ASSOCIATION LOAN POLICY - 1992 WITH A.L.T.A. ENDORSEMENT FORM 1 COVERAGE EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attomeys' fees or expenses which arise by reason of: 1. (a) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating to (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location c any improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy; (b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect; lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge. 3. Defects, liens, encumbrances, adverse claims, or other matters: (a) whether or not recorded in the public records at Date of Policy, but created, suffered, assumed or agreed to by the insured claimant; (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy; (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy (except to the extent that this policy insures the priority of the lien of the insured mortgage over any statutory lien for services, labor or material or the extent insurance is afforded herein as to assessments for street improvements under construction or completed at date of policy); or (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the insured mortgage. 4. Unenforceability of the lien of the insured mortgage because of the inability or failure of the insured at Date of Policy, or the inability or failure of any subsequent owner of the indebtedness, to comply with the applicable "doing business" laws of the state in which the land is situated. 5. Invalidity or unenforceability of the lien of the insured mortgage, or daim thereof, which arises out of the transaction evidenced by the insured mortgage and is based upon usury or any consumer credit protection or truth in lending law. 6. Any,statutory lien for services, labor or materials (or the claim of priority of any statutory lien for services, labor or materials over the lien of the insured mortgage) arising from an improvement or work related to the land which is contracted for and commenced subsequent to Date of Policy and is not financed in whole or in part by proceeds of the indebtedness secured by the insured mortgage which at Date of Policy the insured has advanced or is obligated to advance. 7. Any claim, which arises out of the transaction creating the interest of the mortgagee insured_ by this policy, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that is based on: (i) the transaction creating the interest of the insured mortgagee being deemed a fraudulent conveyance or fraudulent transfer; or (ii) the subordination of the interest of the insured mortgagee as a result of the application of the doctrine of equitable subordination; or (iii) the transaction creating the interest of the insured mortgagee being deemed a preferential transfer except where the preferential transfer results from the failure: (a) to timely record the instrument of transfer; or (b) of such recordation to impart notice to a purchaser for value or a judgment or lien creditor. 7. AMERICAN. LAND TITLE ASSOCIATION LOAN POLICY - 1992 WITH REGIONAL EXCEPTIONS When the American Land Title Association policy is used as a Standard Coverage Policy and not as an Extended Coverage Policy the exclusions set forth in paragraph 6 above are used and the following exceptions to coverage appear in the policy. SCHEDULE B This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) which arise by reason of: 1. Taxes or assessments which are not.shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. 2. Any facts, rights, interests, or claims which are not shown by the public records but which could be ascertained by an inspection of said land or by making inquiry of persons in possession thereof. 3. Easements, daims of easement or encumbrances which are not shown by the public records. 4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by public records. 5. Unpatented mining claims; reservations or exceptions in patents or in Acts authorizing the issuance thereof, water rights, claims or title to water. 6. Any lien, or right to a lien, for services, labor or material theretofore or hereafter furnished, imposed by law and not shown by the public records. 8. AMERICAN LAND TITLE ASSOCIATION OWNER'S POLICY 1992 First American Title Order Number001- 3995594 (U) Page Number: 13 EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of: 1. (a) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating to (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or. any parcel of which. the land is or was a part, or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. (b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge. 3. Defects, liens, encumbrances, adverse claims, or other matters: (a) created, suffered, assumed or agreed to by the insured claimant; (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy; (c) resulting in no loss or damage to the insured claimant, (d) attaching or created subsequent to Date of Policy; or (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the estate or interest insured by this policy. 4. Any claim, which arises out of the transaction vesting in the insured the estate or interest insured by this policy, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that is based on: (i) the transaction creating the estate or interest insured by this policy being deemed a fraudulent conveyance or fraudulent transfer; or (ii) the transaction creating the estate or interest insured by this policy being deemed a preferential transfer except where the preferential transfer results from the failure: (a) to timely record the instrument of transfer; or (b) of such recordation to impart notice to a purchaser for value or judgment or lien creditor. 9. AMERICAN LAND TITLE ASSOCIATION OWNER'S POLICY - 1992. WITH REGIONAL EXCEPTIONS When -the American Land Title Association policy is used as a Standard Coverage Policy and not as an Extended Coverage Policy the exclusions set forth in paragraph 8 above are used and the following exceptions to coverage appear in the policy. SCHEDULE B This policy does not insure against loss or damage (and the Company will not pay costs, attomeys' fees or expenses) which arise by reason of: 1. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records.. 2. Any facts, rights, interests, or claims which are not shown by the public records but which could be ascertained by an inspection of said land or by making. inquiry of persons in possession thereof. 3. Easements, claims of easement or encumbrances which are not shown by the public records. 4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by public records. 5. Unpatented mining claims; reservations or exceptions in patents or in Acts authorizing the issuance thereof; water rights, claims or title to water. 6. Any lien, or right to a lien, for services, labor or material theretofore or hereafter furnished, imposed by law and not shown by the public records. 10. AMERICAN LAND TITLE ASSOCIATION RESIDENTIAL TITLE INSURANCE POLICY - 1987 EXCLUSIONS In addition to the Exceptions in Schedule B, you are not insured against loss, costs, attorneys' fees and expenses resulting from: 1. Governmental police power, and the existence or violation of any law or government regulation. This includes building and zoning ordinances and also laws and regulations concerning: • land use * land division • improvements on the land * environmental protection This exclusion does not apply to violations or the enforcement of these matters which appear in the public records at Policy Date. This exclusion does not limit the zoning coverage described in items 12 and 13 of Covered Title Risks. 2. The right to take the land by condemning it, unless: First American Title Order Number'4001- 3995594 (LI) Page Number: 14 * a notice of exercising the right appears in the public records on the Policy Date * the taking happened prior to the Policy Date and is binding on you if you bought the land without knowing of the taking. 3. Title Risks: • that are created, allowed, or agreed to by you • that are known to you, but not to us; on the Policy Date - unless they appeared in the public records • that result in no loss to you • that first affect your title after the Policy Date - this does not limit the labor and material lien coverage in Item 8 of Covered Title Risks 4. Failure to pay value for your title. 5. Lack of a right: • to any land outside the area specifically described and referred to in Item 3 of Schedule A, or • in streets, alleys, or waterways that touch your land This exclusion does not limit the access coverage in Item 5 of Covered Title Risks. il. EAGLE PROTECTION OWNER'S POLICY CLTA HOMEOWNER'S POLICY OF TITLE INSURANCE - 2008 ALTA HOMEOWNER'S POLICY OF TITLE INSURANCE - 2008 Covered Risks 16 (Subdivision Law Violation). 18 (Building Permit). 19 (Zoning) and 21 (Encroachment of boundary walls or fences) are subject to Deductible Amounts and Maximum Dollar Limits of Liability EXCLUSIONS In addition to the Exceptions in Schedule B, You are not insured against loss, costs, attorneys' fees, and expenses resulting from: 1. Governmental police power, and the existence or violation of those portions of any law or government regulation concerning: a. building b. zoning c. land use d. improvements on the land e. land division f. environmental protection This Exclusion does not limit the coverage described in Covered Risk 8.a., 14, 15, 16, 18, 19, 20, 23 or 27. 2. The failure of Your existing structures, or any part of them, to be'constructed in accordance with applicable building codes. This Exclusion does not limit the coverage described in Covered Risk 14 or 15. 3. The right to take the Land by condemning it. This Exclusion does not limit the coverage described in Covered Risk 17. 4. Risks: a. that are created, allowed, or agreed to by You, whether or not they are recorded in the Public Records; b. that are Known to You at the Policy Date, but not to Us, unless they are recorded in the Public Records at the policy Date; c. that result in no loss to You; or d. that first occur after the Policy Date - this does not limit the coverage described in Covered Risk 7, 8.e., 25, 26, 27 or 28. 5. Failure to pay value for Your Title. 6. Lack of a right: a. to any land outside the area specifically described and referred to in paragraph 3 of Schedule A; and b. in streets, alleys, or waterways that touch the Land. This Exclusion does not limit the coverage described in Covered Risk it or 21 LIMITATIONS ON COVERED RISKS Your insurance for the following Covered Risks is limited on the Owner's Coverage Statement as follows: Covered Risk 16, 18, 19 and 21, Your Deductible Amount and Our Maximum Dollar Limit of Liability shown in Schedule A. The deductible amounts and maximum dollar limits shown on Schedule A are as follows: Your Deductible Amount Our Maximum Dollar Limit of Liability Covered Risk 16: 1% of Policy Amount or $5,000.00 (whichever is less) $10,000.00 Covered Risk 18: 1% of Policy Amount or $5,000.00 (whichever is less) $25,000.00 Covered Risk 19: 1% of Policy Amount or $5,000.00 (whichever is less) $25,000.00 Covered Risk 21: 1% of Policy Amount or $2,500.00 (whichever is less) $5,000.00 12. THIRD GENERATION EAGLE LOAN POLICY AMERICAN LAND TITLE ASSOCIATION EXPANDED COVERAGE RESIDENTIAL LOAN POLICY (1 /01/08) First American Title Order Number 001- 3995594 (LI) Page Number: 15 EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of: 1. (a) Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to (i) the occupancy, use, or enjoyment of the Land; (ii) the character, dimensions, or location of any improvement erected on the Land; (iii) the subdivision of land; or(iv) environmental protection; or the effect of any violation of these laws, ordinances, or governmental regulations. This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5, 6, 13(c), 13(d), 14 or 16. (b)Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 5, 6, 13(c), 13(d), 14 or 16. 2. Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8. 3. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed or agreed to by the Insured Claimant; (b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; (c) resulting in no loss or damage to the Insured Claimant; (d) attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risk 11, 16, 17, 18, 19, 20, 21, 22, 23, 24, 27 or 28); or (e) resulting in loss or damage which would not have been sustained if the Insured Claimant had paid value for the Insured Mortgage. 4. Unenforceability of the lien of the Insured Mortgage because of the inability or failure of an Insured to comply with applicable doing business laws of the state where the Land is situated. 5. Invalidity or unenforceability in whole or in part of the lien of the Insured Mortgage that arises out of the transaction evidenced by the Insured Mortgage and is based upon usury, or any consumer credit protection or truth-in- lending lain. This Exclusion does not modify or limit the coverage provided in Covered. Risk 26. 6. Any claim of invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage as to Advances or modifications made after the Insured has Knowledge that the vestee shown in Schedule A is no longer the owner of the estate or interest covered by this policy. This Exclusion does not modify or limit the coverage provided in Covered Risk 11. 7. Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching subsequent to Date of Policy. This Exclusion does not modify or limit the coverage provided in Covered Risk 11(b) or 25. 8. The failure of the residential structure, or any portion of it, to have been constructed before, on or after Date of Policy in accordance with applicable. building codes.. This Exclusion does not modify or limit the coverage provided in Covered Risk 5 or 6. 13. AMERICAN LAND TITLE ASSOCIATION LOAN POLICY - 2006 EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy, and the Company will not pay loss or damage, costs, attorneys' fees, or expenses that arise by reason of: 1. (a) Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to (i) the occupancy, use, or enjoyment of the Land; (ii) the character, dimensions, or location of any improvement erected on the Land; (iii) the subdivision of land; or (iv) environmental protection; or the effect of any violation of these laws, ordinances, or governmental regulations. This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk S. (b) Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 6. 2. Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8. 3. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed, or agreed to by the Insured Claimant; (b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; (c) resulting in no loss or damage to the Insured Claimant; (d) attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risk 11, 13, or 14); or (e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Insured Mortgage. 4. Unenforceability of the lien of the Insured Mortgage because of the inability or failure of an Insured to comply with applicable doing - business laws of the state where the Land is situated. 5. Invalidity or unenforceability in whole or in part of the lien of the Insured Mortgage that arises out of the transaction evidenced by the Insured Mortgage and is based upon usury or any consumer credit protection or truth -in- lending law. 6. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that the transaction creating the lien of the Insured Mortgage, is First American Title Order Numbe4001- 3995594 (LI) Page Number: 16 (a) a fraudulent conveyance or fraudulent transfer, or (b) a preferential transfer for any reason not stated in Covered Risk 13(b) of this policy. Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching between Date of Policy and the date of recording of the Insured Mortgage in the Public Records. This Exclusion does not modify or limit the coverage provided under Covered Risk 11(b). 14. AMERICAN LAND TITLE ASSOCIATION LOAN POLICY - 2006 WITH REGIONAL EXCEPTIONS When the American Land Tide Association policy is used as a Standard Coverage Policy and not as an Extended Coverage Policy the exclusions set forth in paragraph 13 above are used and the following exceptions to coverage appear in the policy. SCHEDULE B This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) which arise by reason of: 1. (a) Taxes or assessments that are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the Public Records; (b) proceedings by a public agency that may result in taxes or assessments, or notices of such proceedings, whether or not.shown by the records of such agency or by the Public Records. 2. Any facts, rights, interests, or claims that are not shown by the Public Records but that could be ascertained by an inspection of the Land or that may be asserted by persons in possession of the Land. 3. Easements, liens or encumbrances, or claims thereof, not shown by the Public Records. 4. Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land and not shown by the Public Records. 5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the Public Records. 15. AMERICAN LAND TITLE ASSOCIATION OWNER'S POLICY - 2006 EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of: 1. (a) Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to (i) the occupancy, use, or enjoyment of the Land; (ii) the character, dimensions, or location of any improvement erected on the Land,-- (iii) the subdivision of land; or (iv) environmental protection;or the effect of any violation of these laws, ordinances, or governmental regulations. This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5. (b) Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 6. 2. Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or B. 3. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed, or agreed to by the Insured Claimant; (b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; (c) resulting in no loss or damage to the Insured Claimant; (d) attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risks 9 and 10); or (e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Title. 4. Any claim, by reason of the. operation of federal bankruptcy, state insolvency, or similar creditors? rights laws, that the transaction vesting the Title as shown in Schedule A, is (a) a fraudulent conveyance or fraudulent transfer, or (b) a preferential transfer for any reason not stated in Covered Risk 9 of this policy. 5. Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching between Date of Policy and the date of recording of the deed or other instrument of transfer in the Public Records that vests Title as shown in Schedule A. 16. AMERICAN LAND TITLE ASSOCIATION OWNER'S POLICY - 2006 WITH REGIONAL EXCEPTIONS First American Title When the American Land Title Assoc .i olicy is used as a Standard Coverage Policy and notftended Coverage. Policy the exclusions set forth in paragraph 15 above are used and the following exceptions to coverage appear in the policy. SCHEDULE B This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) which arise by reason of: 1. (a) Taxes or assessments that are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the Public Records; (b) proceedings by a public agency that may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the Public Records. 2. Any facts, rights, interests, or claims that are not shown by the Public Records but that could be ascertained by an inspection of the Land or that may be asserted by persons in possession of the Land. 3. Easements, liens or encumbrances, or claims thereof, not shown by the Public Records. 4. Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land and not shown by the Public Records. 5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the Public Records. First American Title PRIVACY POLICY We Are Committed to Safeguarding Customer Information In order to better serve your needs now and in the future, we may ask you to provide us with certain information. We understand that you may be concerned about what we will do with such information — particularly any personal or financial information. We agree that you have a right to know how we will utilize the personal information you provide to us. Therefore, together with our parent company, The First American Corporation, we have adopted this Privacy Policy to govern the use and handling of your personal information. Applicability This Privacy Policy governs our use of the information which you provide to us. It does not govern the manner in which we may use information we have obtained from any other source, such as information obtained from a public record or from another person or entity. First American has also adopted broader guidelines that govern our use of personal information regardless of its source. First American calls these guidelines its Fair Information Values, a copy of which can be found on our website at www.firstam.com. Types of Information Depending upon which of our services you are utilizing, the types of nonpublic personal information that we may collect include: • Information we receive from you on applications, forms and in other communications to us, whether in writing, in person, by telephone or any other means; • Information about your transactions with us, our affiliated companies, or others; and • Information we receive from a consumer reporting agency. Use of Information We request information from you for our own legitimate business purposes and not for the benefit of any nonaffiliated party. Therefore, we will not release your information to nonaffiliated parties except: (1) as necessary for us to provide the product or service you have requested of us; or (2) as permitted by. law. We may, however, store such information indefinitely, including the period after which any customer relationship has ceased. Such information may be used for any internal purpose, such as quality control efforts or customer analysis. We may also provide all of the types of nonpublic personal information listed above to one or more of our affiliated companies. Such affiliated companies include financial service providers, such as title insurers, property and casualty insurers, and trust and investment advisory companies, or companies involved in real estate services, such as appraisal companies, home warranty companies, and escrow companies. Furthermore, we may also provide all the information we collect, as described above, to companies that perform marketing services on our behalf, on behalf of our affiliated companies, or to other financial institutions with whom we or our affiliated companies have joint marketing agreements. Former Customers Even if you are no longer our customer, our Privacy Policy will continue to apply to you. Confidentiality and Security We will use our best efforts to ensure that no unauthorized parties have access to any of your information. We restrict access to nonpublic personal information about you to those individuals and entities who need to know that information to provide products or services to you. We will use our best efforts to train and oversee our employees and agents to ensure that your information will be handled responsibly and in accordance with this Privacy Policy and First American's Fair Information Values. We currently maintain physical, electronic, and procedural safeguards that comply with federal regulations to guard your nonpublic personal information. © 2001 The First American Corporation • All Rights Reserved END OF DOCUMENT