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1ST SUBMITTAL - PRELIMINARY TITLE REPORT 2019-01-08 CLTA Preliminary Report Form Order Number: OSA-5820313 (06) (Rev. 11/06) Page Number: 1 First American Title First American Title Company 18500 Von Karman Avenue, Suite 600 Irvine, CA 92612 File No.: OSA-5820313 (06) This report has been amended/updated to reflect the following matters: [ ] No changes made to the report other than the Effective Date [ ] Property address has been revised [ ] Vesting has been revised [ ] Legal Description has been revised [ X ] Taxes have been updated [ ] Original item number(s) have been removed [ X ] New item number(s) AA have been added [ X ] Original item number(s) A through K have been revised [ ] Other: Order Number: OSA-5820313 (06) Page Number: 2 First American Title Updated 01/08/2019 First American Title Company 4380 La Jolla Village Dr, Suite 200 San Diego, CA 92122 Customer Reference: Order Number: OSA-5820313 (06) Title Officer: Dianne Livingston Phone: (858)410-1303 Fax No.: (714)913-6750 E-Mail: dslivingston@firstam.com Escrow Officer: Brenna Ryan Phone: (949)885-2404 Fax No.: (714)913-6372 E-Mail: bryan@firstam.com Buyer: Meriwether Companies, LLC Owner: Sunrise LQ, LLC Property: APN: 766-070-012, 764-210-007, 764-210-028, 029, 764-200- 076 et al Palm Desert, CA PRELIMINARY REPORT In response to the above referenced application for a policy of title insurance, this company hereby reports that it is pre pared to issue, or cause to be issued, as of the date hereof, a Policy or Policies of Title Insurance describing the land and the esta te or interest therein hereinafter set forth, insuring against loss which may be sustained by reason of any defect, lien o r 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 f orth 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 Insure d 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 fort h 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. This report (and any supplements or amendments hereto) is issued solely for the purpose of facilitating the issuance of a pol icy 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. Order Number: OSA-5820313 (06) Page Number: 3 First American Title Dated as of December 28, 2018 at 7:30 A.M. The form of Policy of title insurance contemplated by this report is: to be determined 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: SUNRISE LQ, LLC, a Delaware limited liability company 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: AA. General and special taxes and assessments for the fiscal year 2019-2020, a lien not yet due or payable. A. General and special taxes and assessments for the fiscal year 2018-2019. First Installment: $8,778.22, PAID Penalty: $0.00 Second Installment: $8,778.22, OPEN Penalty: $0.00 Tax Rate Area: 020-195 A. P. No.: 764-200-076-0 The County Tax Collector could not verify the amounts shown above at this time. Please verify the amounts with the County Tax Collector prior to the close of the contemplated transaction. B. General and special taxes and assessments for the fiscal year 2018-2019. First Installment: $9,342.25, PAID Penalty: $0.00 Order Number: OSA-5820313 (06) Page Number: 4 First American Title Second Installment: $9,342.25, OPEN Penalty: $0.00 Tax Rate Area: 020-195 A. P. No.: 764-210-007-9 The County Tax Collector could not verify the amounts shown above at this time. Please verify the amounts with the County Tax Collector prior to the close of the contemplated transaction. C. General and special taxes and assessments for the fiscal year 2018-2019. First Installment: $84.43, PAID Penalty: $0.00 Second Installment: $84.43, OPEN Penalty: $0.00 Tax Rate Area: 020-195 A. P. No.: 764-210-028-8 The County Tax Collector could not verify the amounts shown above at this time. Please verify the amounts with the County Tax Collector prior to the close of the contemplated transaction. D. General and special taxes and assessments for the fiscal year 2018-2019. First Installment: $379.60, PAID Penalty: $0.00 Second Installment: $379.60, OPEN Penalty: $0.00 Tax Rate Area: 020-195 A. P. No.: 764-210-029-9 The County Tax Collector could not verify the amounts shown above at this time. Please verify the amounts with the County Tax Collector prior to the close of the contemplated transaction. E. General and special taxes and assessments for the fiscal year 2018-2019. First Installment: $17,314.54, PAID Penalty: $0.00 Second Installment: $17,314.54, OPEN Penalty: $0.00 Tax Rate Area: 020-149 A. P. No.: 766-070-003-7 The County Tax Collector could not verify the amounts shown above at this time. Please verify the amounts with the County Tax Collector prior to the close of the contemplated transaction. F. General and special taxes and assessments for the fiscal year 2018-2019. Order Number: OSA-5820313 (06) Page Number: 5 First American Title First Installment: $39,110.53, PAID Penalty: $0.00 Second Installment: $39,110.53, OPEN Penalty: $0.00 Tax Rate Area: 020-150 A. P. No.: 766-070-006-0 The County Tax Collector could not verify the amounts shown above at this time. Please verify the amounts with the County Tax Collector prior to the close of the contemplated transaction. G. General and special taxes and assessments for the fiscal year 2018-2019. First Installment: $11,363.76, PAID Penalty: $0.00 Second Installment: $11,363.76, OPEN Penalty: $0.00 Tax Rate Area: 020-150 A. P. No.: 766-070-012-5 The County Tax Collector could not verify the amounts shown above at this time. Please verify the amounts with the County Tax Collector prior to the close of the contemplated transaction. H. General and special taxes and assessments for the fiscal year 2018-2019. First Installment: $7,727.05, PAID Penalty: $0.00 Second Installment: $7,727.05, OPEN Penalty: $0.00 Tax Rate Area: 020-148 A. P. No.: 766-080-001-6 The County Tax Collector could not verify the amounts shown above at this time. Please verify the amounts with the County Tax Collector prior to the close of the contemplated transaction. I. General and special taxes and assessments for the fiscal year 2018-2019. First Installment: $7,727.05, PAID Penalty: $0.00 Second Installment: $7,727.05, OPEN Penalty: $0.00 Tax Rate Area: 020-148 A. P. No.: 766-080-002-7 The County Tax Collector could not verify the amounts shown above at this time. Please verify the amounts with the County Tax Collector prior to the close of the contemplated transaction. Order Number: OSA-5820313 (06) Page Number: 6 First American Title J. General and special taxes and assessments for the fiscal year 2018-2019. First Installment: $30,427.99, PAID Penalty: $0.00 Second Installment: $30,427.99, OPEN Penalty: $0.00 Tax Rate Area: 020-150 A. P. No.: 766-080-004-9 The County Tax Collector could not verify the amounts shown above at this time. Please verify the amounts with the County Tax Collector prior to the close of the contemplated transaction. K. General and special taxes and assessments for the fiscal year 2018-2019. First Installment: $14,377.67, PAID Penalty: $0.00 Second Installment: $14,377.67, OPEN Penalty: $0.00 Tax Rate Area: 020-150 A. P. No.: 766-080-005-0 The County Tax Collector could not verify the amounts shown above at this time. Please verify the amounts with the County Tax Collector prior to the close of the contemplated transaction. 1. The lien of supplemental taxes, if any, assessed pursuant to Chapter 3.5 commencing with Section 75 of the California Revenue and Taxation Code. 2. Water rights, claims or title to water, whether or not shown by the public records. 3. Intentionally Deleted 4. Intentionally Deleted 5. Intentionally Deleted 6. An easement for water pipeline and incidental purposes, recorded December 8, 1949 as Book 1130, Page 116 of Official Records. In Favor of: United States of America Affects: Parcel A as described therein A portion of said easement was abandoned by document recorded December 15, 2003 as Instrument No. 2003-978095. 7. Intentionally Deleted 8. Intentionally Deleted 9. Intentionally Deleted Order Number: OSA-5820313 (06) Page Number: 7 First American Title 10. Intentionally Deleted 11. An easement for road and incidental purposes, recorded November 29, 1956 as Book 2005, Page 328 of Official Records. In Favor of: Ethel L. Hicks, et al Affects: Parcel B as described therein 12. Rights of the public as to any portion of the land lying within an area 30.00 feet on each side of section lines, pursuant to a Resolution of the Board of Supervisors of the County of Riverside, per document recorded April 17, 1959 as Instrument No. 32692, of Official Records. Affects: The most northerly 30 feet (58th Avenue) of Parcels A and B 13. An easement for underground pipe lines, ingress, egress and incidental purposes, recorded September 28, 1960 as Instrument No. 84414 of Official Records. In Favor of: Coachella Valley County Water District Affects: As described therein 14. An easement for underground pipelines, ingress, egress and incidental purposes, recorded November 14, 1960 as Instrument No. 97202 of Official Records. In Favor of: Coachella Valley County Water District Affects: Parcel A as described therein 15. The Terms, Provisions and Easements contained in the document entitled "Final Judgment and Order of Condemnation" by Coachella Valley County Water District recorded October 17, 1962 as Instrument No. 96508 of Official Records. Affects: Parcel A as described therein 16. An easement for public utilities, ingress, egress and incidental purposes, recorded September 1, 1987 as Instrument No. 253363 of Official Records. In Favor of: General Telephone Company of California Affects: Parcel B and C as described therein 17. Intentionally Deleted 18. Intentionally Deleted 19. Intentionally Deleted 20. Intentionally Deleted 21. Intentionally Deleted 22. The terms and provisions contained in the document entitled "Domestic Water and/or Sanitation System Installation Agreement" executed by and between Coachella Valley Water District, a public agency of the State of California and T.D. Desert Development Corporation recorded February 27, 2001 as Instrument No. 2001-078866 of Official Records. Affects: Parcels A through E Order Number: OSA-5820313 (06) Page Number: 8 First American Title 23. Intentionally Deleted 24. Intentionally Deleted 25. Intentionally Deleted 26. The terms and provisions contained in the document entitled "Domestic Water, Sanitation System Installation and Irrigation Service Agreement" executed by and between Coachella Valley Water District, a public agency of the State of California and Coral Mountain, LLC recorded January 31, 2005 as Instrument No. 2005-0087385 of Official Records. Said instrument provides or establishes that the project will require domestic water distribution and sanitation collection systems and domestic water and sanitation service to each of the units. 27. The terms and provisions contained in the document entitled "Entry Facilities Use and Maintenance Agreement" executed by and between T.D. Desert Development Limited Partnership, a Delaware limited partnership and Andalusia at Coral Mountain Association, a California nonprofit mutual benefit corporation recorded March 21, 2006 as Instrument No. 2006-0197685 of Official Records. Document(s) declaring modifications thereof recorded November 14, 2006 as Instrument No. 2006- 0841432 of Official Records. The terms and provisions contained in the document entitled Assignment and Assumption of Entry Facilities Use and Maintenance Agreement recorded October 25, 2018 as Instrument No. 2018- 0421854 of Official Records. 28. The terms and provisions contained in the document entitled "Median Landscaping Maintenance Agreement Coral Mountain Development" executed by and between Coral Option 1, LLC, a Delaware limited liability company and City of La Quinta, a California municipal corporation recorded May 8, 2006 as Instrument No. 2006-00331924 of Official Records. Said instrument provides or establishes realigned Madison Street The terms and provisions contained in the document entitled Amendment to, Assignment and Assumption of Median Landscaping Maintenance Agreement recorded October 25, 2018 as Instrument No. 2018-421848 of Official Records. 29. The terms and provisions contained in the document entitled Development Covenant, Repurchase Option and Right of First Refusal executed by and between Coral Option I, LLC, a Delaware limited liability company, T.D. Desert Development L.P., a Delaware limited partnership and E&M Coral Mountain, LLC, a Delaware limited liability company recorded December 29, 2006 as Instrument No. 2006-0952926 of Official Records. Document declaring modification thereof recorded December 26, 2007 as Instrument No. 2007- 0764329 of Official Records. The terms and provisions contained in the document entitled Assignment and Assumption of Development Covenant recorded October 25, 2018 as Instrument No. 2018-0421852 of Official Records. Order Number: OSA-5820313 (06) Page Number: 9 First American Title 30. The Terms, Provisions and Easements contained in the document entitled Grant of Easement and Agreement recorded July 26, 2013 as Instrument No. 2013-0360337 of Official Records. Said instrument provides or establishes a perpetual and irrevocable easement in, on, under and across the Easement Area for right-of-way, public street, utility purposes and ancillary uses. 31. The Terms, Provisions and Easements contained in the document entitled "Grant of Easement and Agreement" recorded April 30, 2014 as Instrument No. 2014-0156366, of Official Records. Said instrument provides or establishes a perpetual and irrevocable easement in, on, under and across the Easement Area for right-of-way, public street, utility purposes and ancillary uses. 32. An easement for existing utilities and incidental purposes, as reserved in document recorded April 30, 2014 as Instrument No. 2014-0157740 of Official Records. In Favor of: City of La Quinta Affects: As described therein 33. The terms and provisions contained in the document entitled Memorandum of Agreement, executed by and between Coral Mountain Development, LLC, a Delaware limited liability company, Shea Homes, Inc., a Delaware corporation, T.D. Desert Development Corporation, a Delaware corporation and Coral Mountain, LLC, a Delaware limited liability company, recorded November 27, 2000, as Instrument No. Instrument No. 2000-470160 of Official Records. The terms and provisions contained in the document entitled Assignment and Assumption of Joint Development Agreement recorded October 25, 2018 as Instrument No. 2018-0421851 of Official Records. 34. The terms, provisions and easements contained in the document entitled Easement Agreement, executed by and between Coral Ridge, LLC, a California corporation, Coral Mountain, LLC, a Delaware limited liability company and Coral Option I, LLC, a Delaware limited liability company, recorded August 05, 2005, as Instrument No. Instrument No. 2005-0632449 of Official Records. 34a. The terms and provisions contained in the document entitled "Andalusia at Coral Mountain Entry Facilities Use and Maintenance Agreement" recorded January 29, 2015 as Instrument No. 2015-0037683 of Official Records. The terms and provisions contained in the document entitled "Assignment and Assumption of Entry Facilities Use and Maintenance Agreement" recorded October 25, 2018 as Instrument No. 2018- 0421855 of Official Records. 35. An unrecorded easement for water, irrigation/drainage, regional stormwater protection and incidental purposes, authorized under the Act of August 30, 1890 (26 Stat. 391, 43 U.S.C. 945) identified as 20' BOR Easement No. 123.45-1.3. In Favor of: Coachella Valley Water District and/or United States Bureau of Reclamation Affects: As set forth in various unrecorded documents Order Number: OSA-5820313 (06) Page Number: 10 First American Title 36. An unrecorded easement for water, irrigation/drainage, regional stormwater protection and incidental purposes, authorized under the Act of August 30, 1890 (26 Stat. 391, 43 U.S.C. 945) identified as 20' BOR Easement Parcel C-7-6. In Favor of: Coachella Valley Water District and/or United States Bureau of Reclamation Affects: As set forth in unrecorded plat 37. An unrecorded easement for water, irrigation/drainage, regional stormwater protection and incidental purposes, authorized under the Act of August 30, 1890 (26 Stat. 391, 43 U.S.C. 945) identified as 20' BOR Easement Parcel C-7-12. In Favor of: Coachella Valley Water District and/or United States Bureau of Reclamation Affects: As set forth in unrecorded plat 38. Intentionally Deleted 39. Rights of the parties in possession of a portion of, or all of, said Land, which rights are not disclosed by the public records. 40. Matters which may be disclosed by an inspection and/or by a correct ALTA/NSPS Land Title Survey of said Land that is satisfactory to the Company, and/or by inquiry of the parties in possession thereof. Prior to the issuance of any policy of title insurance, the Company will require: 41. With respect to SUNRISE LQ, LLC, a Delaware limited liability company: a. A copy of its operating agreement and any amendments thereto; b. If it is a California limited liability company, that a certified copy of its articles of organization (LLC- 1) and any certificate of correction (LLC-11), certificate of amendment (LLC-2), or restatement of articles of organization (LLC-10) be recorded in the public records; c. If it is a foreign limited liability company, that a certified copy of its application for registration (LLC-5) be recorded in the public records; d. With respect to any deed, deed of trust, lease, subordination agreement or other document or instrument executed by such limited liability company and presented for recordation by the Company or upon which the Company is asked to rely, that such document or instrument be executed in accordance with one of the following, as appropriate: (i) If the limited liability company properly operates through officers appointed or elected pursuant to the terms of a written operating agreement, such document must be executed by at least two duly elected or appointed officers, as follows: the chairman of the board, the president or any vice president, and any secretary, assistant secretary, the chief financial officer or any assistant treasurer; (ii) If the limited liability company properly operates through a manager or managers identified in the articles of organization and/or duly elected pursuant to the terms of a written operating agreement, such document must be executed by at least two such managers or by one manager if the limited liability company properly operates with the existence of only one manager. e. Other requirements which the Company may impose following its review of the material required herein and other information which the Company may require. Order Number: OSA-5820313 (06) Page Number: 11 First American Title 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. Order Number: OSA-5820313 (06) Page Number: 12 First American Title LEGAL DESCRIPTION Real property in the City of Palm Desert, County of Riverside, State of California, described as follows: PARCEL A: (APN: 766-070-012-5, 764-210-007-9, 764-210-028-8, 764-210-029-9, 764-200-076-0) PARCEL "B" OF LOT LINE ADJUSTMENT NO. 2006-462, AS APPROVED BY THE CITY OF LA QUINTA DECEMBER 07, 2006 BEING: THAT PORTION OF THE NORTHEAST QUARTER OF THE NORTHEAS T QUARTER OF SECTION 28, TOWNSHIP 6 SOUTH, RANGE 7 EAST, S.B.M. IN THE CITY OF LA QUINTA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AND PARCEL "D" OF LOT LINE ADJUSTMENT NO. 2002 -930, RECORDED FEBRUARY 13, 2003, AS DOCUMENT NO. 2003-102524, RECORDS OF RIVERSIDE COUNTY MORE PARTICULARLY DESCRIBED AS FOLLOWS; BEGINNING AT THE NORTHWEST CORNER OF THE NORTHEAST QUARTER OF THE NORTHEAST QUARTER OF SAID SECTION 28; THENCE SOUTH 89° 56' 35" EAST ALONG THE NORTHERLY LINE OF SAID SECTION 28, A DISTANCE OF 499.01 FEET; THENCE SOUTH 00° 03' 25" WEST, A DISTANCE OF 261.25 FEET; THENCE SOUTH 58° 09' 44" EAST, A DISTANCE OF 765.93 FEET; THENCE NORTH 77° 42' 02" EAST, A DISTANCE OF 176.74 FEET, TO THE EASTERLY LINE OF SAID PARCEL "D" AND THE BEGINNING OF A NON-TANGENT CURVE CONCAVE EASTERLY HAVING A RADIUS OF 2455.00 FEET FROM WHICH A RADIAL LINE OF SAID CURVE BEARS NORTH 77° 42' 23" EAST; THENCE SOUTHERLY AND SOUTHEASTERLY ALONG SAID CURVE AND SAID EASTERLY LINE THROUGH A CENTRAL ANGLE OF 20° 10' 55", AN ARC DISTANCE OF 864.75 FEET; TO THE BEGINNING OF A REVERSE CURVE CONCAVE WESTERLY, HAVING A RADIUS OF 2345.00 FEET; THENCE SOUTHEASTERLY, SOUTHERLY AND SOUTHWESTERLY ALONG SAID CURVE AND SAID EASTERLY LINE THROUGH A CENTRAL ANGLE OF 65° 20' 50", AN ARC DISTANCE OF 2674.53 FEET; TO THE BEGINNING OF A REVERSE CURVE CONCAVE SOUTHEASTERLY, HAVING A RADIUS OF 2455.00 FEET; THENCE SOUTHWESTERLY AND SOUTHERLY ALONG SAID CURVE AND SAID EASTERLY LINE THROUGH A CENTRAL ANGLE OF 20° 25' 31", AN ARC DISTANCE OF 875.17 FEET TO THE EASTERLY LINE OF SAID SECTION 28 AND THE MOST SOUTHERLY CORNER OF SAID PARCEL "D"; THENCE NORTH 00° 17' 44" EAST ALONG THE EASTERLY LINE OF SAID SECTION 28 AND THE PARCEL LINE OF SAID PARCEL "D", A DISTANCE OF 2104.91 FEET TO THE EAST QUARTER CORNER OF SAID SECTION 28; THENCE SOUTH 89° 30' 09" EAST ALONG SAID PARCEL LINE, A DISTANCE OF 30.00 FEET; THENCE NORTH 00° 05' 52" EAST ALONG SAID PARCEL LINE, A DISTANCE OF 1326.33 FEET; THENCE NORTH 89° 30' 56" WEST ALONG SAID PARCEL LINE A DISTANCE OF 30.00 FEET TO THE SOUTHEAST CORNER OF THE NORTHEAST QUARTER OF THE NORTHEAST QUARTER OF SAID SECTION 28; THENCE NORTH 89° 54' 54" WEST ALONG THE SOUTHERLY LINE OF SAID NORTHEAST QUARTER OF THE NORTHEAST QUARTER, A DISTANCE OF 1322.31 FEET TO THE SOUTHWEST CORNER OF SAID NORTHEAST QUARTER OF THE NORTHEAST QUARTER; THENCE NORTH 00° 09' 14" EAST ALONG THE WESTERLY LINE OF SAID NORTHEAST QUARTER OF THE NORTHEAST QUARTER, A DISTANCE OF 1325.69 TO THE POINT OF BEGINNING. TOGETHER WITH THAT CERTAIN PORTION OF MADISON STREET, VACAT ED BY SAID CITY ON JANUARY 07, 2003 PER RESOLUTION NO. 2003-003, A COPY OF WHICH WAS RECORDED ON APRIL 30, 2014 AS INSTRUMENT NO. 2014-0157740 OF THE OFFICIAL RECORDS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, AND WHICH WOULD BY OPERATION OF LAW REVERT TO THE ABOVEDESCRIBED PROPERTY. PARCEL B: (APN: 766-070-003-7 AND 766-070-006-0) THE SOUTHEAST QUARTER OF THE NORTHWEST QUARTER, THE SOUTHERLY 180.00 FEET TO THE Order Number: OSA-5820313 (06) Page Number: 13 First American Title NORTHEAST QUARTER OF THE NORTHWEST QUARTER, THE SOUTH HALF OF THE NORTHEAST QUARTER, THE NORTHWEST QUARTER OF THE NORTHEAST QUARTER, EXCEPT THE WEST 820.00 FEET THEREOF AND THE SOUTHERLY 180.00 FEET OF THE WEST 820.00 FEET OF THE NORTHWEST QUARTER, OF THE NORTHEAST QUARTER, ALL IN SECTION 28, TOWNSHIP 6 SOUTH, RANGE 7 EAST, SAN BERNARDINO BASE AND MERIDIAN; EXCEPTING THEREFROM THAT PORTION THEREOF INCLUDED WITHIN 58TH AVENUE. TOGETHER WITH THAT CERTAIN PORTION OF MADISON STREET, VACATED BY SAID CITY ON JANUARY 07, 2003 PER RESOLUTION NO. 2003-003, A COPY OF WHICH WAS RECORDED ON APRIL 30, 2014 AS INSTRUMENT NO. 2014-0157740 OF THE OFFICIAL RECORDS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, AND WHICH WOULD BY OPERATION OF LAW REVERT TO THE ABOVEDESCRIBEDPROPERTY. PARCEL C: (APN: 766-080-001-6 AND 766-080-002-7) THE NORTHEAST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 28, TOWNSHIP 6 SOUTH, RANGE 7 EAST, SAN BERNARDINO BASE AND MERIDIAN; EXCEPTING THEREFROM ALL OIL, MINERAL, HYDROCARBON AND KINDRED SUBSTANCES IN AND UNDER SAID PROPERTY, WITHOUT RIGHT OF SURFACE ENTRY. PARCEL D: (APN: 766-080-005-0) THE SOUTHWEST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 28, TOWNSHIP 6 SOUTH, RANGE 7 EAST, SAN BERNARDINO BASE AND MERIDIAN; EXCEPTING THEREFROM THAT PORTION OF LAND LYING IN THE SOUTHWEST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 28, TOWNSHIP 6 SOUTH, RANGE 7 EAST, SAN BERNARDINO BASE AND MERIDIAN, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE SOUTH QUARTER CORNER OF SAID SECTION 28; THENCE NORTH 00°07'45" WEST, ALONG THE WEST BOUNDARY OF SAID SOUTHWEST QUARTER OF THE SOUTHEAST QUARTER, 287.38 FEET TO A POINT ON THE ARC OF A CURVE; THENCE 94.73 FEET ALONG THE ARC OF SAID CURVE TO THE LEFT, HAVING A RADIUS OF 910.00 FEET AND A CENTRAL ANGLE OF 05°57'51" WHOSE CHORD BEARS SOUTH 66°04'50" EAST, A DISTANCE OF 94.68 FEET; THENCE SOUTH 69°03'45" EAST, 679.03 FEET TO A POINT IN THE SOUTH BOUNDARY OF SAID SOUTHWEST QUARTER OF THE SOUTHEAST QUARTER; THENCE SOUTH 89°29'45" WEST, ALONG SAID SOUTH BOUNDARY, 720.12 FEET TO THE POINT OF BEGINNING; EXCEPTING THEREFROM THAT PORTION THEREOF LYING WITHIN 60TH AVENUE. PARCEL E: (APN: 766-080-004-9) THE NORTH HALF OF THE SOUTHEAST QUARTER OF SECTION 28, TOWNSHIP 6 SOUTH, RANGE 7 EAST, SAN BERNARDINO BASE AND MERIDIAN. TOGETHER WITH THAT CERTAIN PORTION OF MADISON STREET, VACAT ED BY SAID CITY ON JANUARY 07, 2003 PER RESOLUTION NO. 2003-003, A COPY OF WHICH RECORDED APRIL 30, 2014 AS INSTRUMENT NO. 2014-0157740 OF OFFICIAL RECORDS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY, AND WHICH WOULD BY OPERATION OF LAW REVERT TO THE ABOVE DESCRIBED PROPERTY. Order Number: OSA-5820313 (06) Page Number: 14 First American Title APN: 766-070-012-5 and 764-210-007-9 and 764-210-028-8 and 764-210-029-9 and 764-200-076-0 and 766-070-003-7 and 766-070-006-0 and 766-080-001-6 and 766-080-002-7 and 766-080-002-7 and 766-080-005-0 and 766-080-004-9 Order Number: OSA-5820313 (06) Page Number: 15 First American Title Order Number: OSA-5820313 (06) Page Number: 16 First American Title 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. Order Number: OSA-5820313 (06) Page Number: 17 First American Title EXHIBIT A LIST OF PRINTED EXCEPTIONS AND EXCLUSIONS (BY POLICY TYPE) CLTA STANDARD COVERAGE POLICY – 1990 EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of: 1. (a) Any law, ordinance or governmental regulation (including but not limited to building or z oning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimens ions or location of any improvement now or hereafter erected on the land; (iii) a separatio n 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 eff ect 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 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 purch aser 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 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 claim thereof, which arises out of the transaction evi denced 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 of interest insured by this policy or the tr ansaction creating the interest of the insured lender, by reason of the operation of federal bankruptcy, state insolvency or similar creditors' rights laws. EXCEPTIONS FROM COVERAGE - SCHEDULE B, PART I 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 assess ments on real property or by the public records. Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the public, records. 2. Any facts, rights, interests, or claims which are not shown by the public records but which could be a scertained by an inspection of the land or which may be asserted by persons in possession thereof. 3. Easements, liens or encumbrances, or claims thereof, not shown by the public records. 4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the public records. 5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) wate r rights, claims or title to water, whether or not the matters excepted under (a), (b) or (c) are shown by the public records. 6. Any lien or right to a lien for services, labor or material not shown by the public records. Order Number: OSA-5820313 (06) Page Number: 18 First American Title CLTA/ALTA HOMEOWNER'S POLICY OF TITLE INSURANCE (12-02-13) 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; and f. environmental protection. This Exclusion does not limit the coverage described in Covered Risk 8.a., 14, 15, 16, 18, 19, 20, 23 or 27. 2. The failure of Your existing structures, or any part of them, to be 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 Dat e; c. that result in no loss to You; or d. that first occur after the Policy Date - this does not limit the coverage described in Covered Risk 7, 8.e., 25, 26, 27 or 28. 5. Failure to pay value for Your Title. 6. Lack of a right: a. to any land outside the area specifically described and referred to in paragraph 3 of Schedule A; and b. in streets, alleys, or waterways that touch the Land. This Exclusion does not limit the coverage described in Covered Risk 11 or 21. 7. The transfer of the Title to You is invalid as a preferential transfer or as a fraudulent transfer or conveyance under federal bankruptcy, state insolvency, or similar creditors' rights laws. 8. Contamination, explosion, fire, flooding, vibration, fracturing, earthquake, or subsidence. 9. Negligence by a person or an Entity exercising a right to extract or develop minerals, water, or any other substances. LIMITATIONS ON COVERED RISKS Your insurance for the following Covered Risks is limited on the Owner's Coverage Statement as follows: For Covered Risk 16, 18, 19, and 21 Your Deductible Amount and Our Maximum Dollar Limit of Liability shown in Schedule A. The deductible amounts and maximum dollar limits shown on Schedule A are as follows: Your Deductible Amount Our Maximum Dollar Limit of Liability Covered Risk 16: 1% of Policy Amount Shown in Schedule A or $2,500 $10,000 (whichever is less) Covered Risk 18: 1% of Policy Amount Shown in Schedule A or $5,000 $25,000 (whichever is less) Covered Risk 19: 1% of Policy Amount Shown in Schedule A or $5,000 $25,000 (whichever is less) Covered Risk 21: 1% of Policy Amount Shown in Schedule A or $2,500 $5,000 (whichever is less) 2006 ALTA LOAN POLICY (06-17-06) EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy, and the Company will not pay loss or damage, costs, attorneys' fees, or expenses that arise by reason of: 1. (a) Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, reg ulating, 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; Order Number: OSA-5820313 (06) Page Number: 19 First American Title (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 R isk 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 Cov ered 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 applica ble 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 evi denced 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 tr ansaction creating the lien of the Insured Mortgage, is (a) a fraudulent conveyance or fraudulent transfer, or (b) a preferential transfer for any reason not stated in Covered Risk 13(b) of this policy. 7. Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching b etween 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). The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage : EXCEPTIONS FROM COVERAGE [Except as provided in Schedule B - Part II,[ t[or T]his policy does not insure against loss or damage, and the Company will not pay costs, attorneys' fees or expenses, that arise by reason of: [PART I [The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage : 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 inspecti on 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 a n 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) wate r rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the Public Records. 6. Any lien or right to a lien for services, labor or material not shown by the public records. PART II In addition to the matters set forth in Part I of this Schedule, the Title is subject to the following matters, and the Company insures against loss or damage sustained in the event that they are not subordinate to the lien of the Insured Mortgage:] 2006 ALTA OWNER'S POLICY (06-17-06) EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy, and the Company will not pay loss or damage, costs, attorneys' fees, or expenses that arise by reason of: 1. (a) Any law, ordinance, permit, or governmental regulation (including those relating to bui lding and zoning) restricting, regulating, prohibiting, or relating to Order Number: OSA-5820313 (06) Page Number: 20 First American Title (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 8. 3. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed, or agreed to by the Insured Claimant; (b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; (c) resulting in no loss or damage to the Insured Claimant; (d) attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risk 9 or 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 insolv ency, or similar creditors' rights laws, that the transaction vesting the Title as shown in Schedule A, is (a) a fraudulent conveyance or fraudulent transfer, or (b) a preferential transfer for any reason not stated in Covered Risk 9 of this policy. 5. Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching between Date of Policy and the date of recording of the deed or other instrument of transfer in the Public Records that vests Title as shown in Schedule A. The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the fol lowing Exceptions from Coverage: EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage, and the Company will not pay costs, attorneys' fees or expenses, that ari se by reason of: [The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage : 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 inspecti on 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 a n 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) wate r rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the Public Records. 6. Any lien or right to a lien for services, labor or material not shown by the Public Records. 7. [Variable exceptions such as taxes, easements, CC&R's, etc. shown here.] ALTA EXPANDED COVERAGE RESIDENTIAL LOAN POLICY (07-26-10) EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy, and the Company will not pay loss or damage, costs, attorneys' fees, or expenses that arise by reason of: 1. (a) Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to (i) the occupancy, use, or enjoyment of the Land; (ii) the character, dimensions, or location of any improvement erected on the Land; (iii) the subdivision of land; or (iv) environmental protection; or the effect of any violation of these laws, ordinances, or governmental regulations. This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5, 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), First American Title 14 or 16. 2. Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8. 3. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed, or agreed to by the Insured Claimant; (b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy; (c) resulting in no loss or damage to the Insured Claimant; (d) attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risk 11, 16, 17, 18, 19, 20, 21, 22, 23, 24, 27 or 28); or (e) resulting in loss or damage that would not have been sustained if the Insured Claimant ha d 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 applica ble doing-business laws of the state where the Land is situated. 5. Invalidity or unenforceability in whole or in part of the lien of the Insured Mortgage that arises out of the transaction evidenced by the Insured Mortgage and is based upon usury or any consumer credit protection or truth-in-lending law. This Exclusion does not modify or limit the coverage provided in Covered Risk 26. 6. Any claim of invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage as to Advances or modificat ions 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 an d 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. 9. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' ri ghts laws, that the transaction creating the lien of the Insured Mortgage, is (a) a fraudulent conveyance or fraudulent transfer, or (b) a preferential transfer for any reason not stated in Covered Risk 27(b) of this policy. 10. Contamination, explosion, fire, flooding, vibration, fracturing, earthquake, or subsidence. 11. Negligence by a person or an Entity exercising a right to extract or develop minerals, water, or any other substances. Privacy Information 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 subsidiaries 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 that 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 guideline s that govern our use of personal information regardless of its source. First American calls these guidelines its Fair Information Values. 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, w e 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 compa nies, 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 acces s 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. Information Obtained Through Our Web Site First American Financial Corporation is sensitive to privacy issues on the Internet. We believe it is important you know how we treat the information about you we receive on the Internet. In general, you can visit First American or its affiliates’ Web sites on the World Wide Web without telling us who you are or revealing any information about yourself. Our Web servers collect the domain names, not the e-mail addresses, of visitors. This information is aggregated to measure the number of visits, average time spent on the site, pages viewed and similar information. First American uses this information to measure the use of our site and to develop ideas to improve the content of our site. There are times, however, when we may need information from you, such as your name and email address. When information is needed, we will use our best efforts to l et you know at the time of collection how we will use the personal information. Usually, the personal information we collect is used only by us to respond to your inquiry, process an order or allow you to access specific account/profile information. If you choose to share any personal information with us, we will only use it in accordance with the policies outlined above. Business Relationships First American Financial Corporation's site and its affiliates' sites may contain links to other Web sites. While we try to link only to sites that share our high standards and respect for privacy, we are not responsible for the content or the privacy practices employed by other sites. Cookies Some of First American's Web sites may make use of "cookie" technology to measure site activity and to customize information to your personal tastes. A cookie is an element of data that a Web site can send to your browser, which may then store the cookie on your hard drive. FirstAm.com uses stored cookies. The goal of this technology is to better serve you when visiting our site, save you time when you are he re and to provide you with a more meaningful and productive Web site experience. -------------------------------------------------------------------------------- Fair Information Values Fairness We consider consumer expectations about their privacy in all our businesses. We only offer products and services that assure a favorable balance between consumer benefits and consumer privacy. Public Record We believe that an open public record creates significant value for society, enhances consumer choice and creates consumer opportunity. We actively support an open public re cord and emphasize its importance and contribution to our economy. Use We believe we should behave responsibly when we use information about a consumer in our business. We will obey the laws governing the collection, use and dissemination of data. Accuracy We will take reasonable steps to help assure the accuracy of the data we collect, use and disseminate. Where possible, we will take reasonable steps to correct inaccurate information. When, as with the public record, we cannot correct inaccurate information, we will take all reasonable steps to assist consum ers in identifying the source of the erroneous data so that the consumer can secure the required corrections. Education We endeavor to educate the users of our products and services, our employees and others in our industry about the importance of consumer privacy. We will instruct our employees on our fair information values and on the responsible collection and use of data. We will encourage others in our industry to collect and use information in a responsible manner. Security We will maintain appropriate facilities and systems to protect against unauthorized access to and corruption of the data we maintain. Form 50-PRIVACY (9/1/10) Page 1 of 1 Privacy Information (2001-2010 First American Financial Corporation)