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Title Insurance Commitment (SRR) 1st American – 2014 Form No. 1068-2 Commitment No.: NCS-700079-ONT1 ALTA Plain Language Commitment Page Number: 1 First American Title Insurance Company First American Title Company National Commercial Services 3281 E Guasti Road, Suite 440 Ontario, CA 91761 December 10, 2014 Graham Culp Meriwether 11999 San Vicente Blvd., Suite 220 Los Angeles , CA 90049 Title Officer: Wendy Hagen Bowen Title Assistant: Diane Nesbit Phone: (909)510-6225 Phone: (909)510-6200 Email: whagen@firstam.com Email: dnesbit@firstam.com Order Number: NCS-700079-ONT1 Property: Vacant, La Quinta, CA Attached please find the following item(s): Commitment Thank You for your confidence and support. We at First American Title Insurance Company maintain the fundamental principle: Customer First! Form No. 1068-2 Commitment No.: NCS-700079-ONT1 ALTA Plain Language Commitment Page Number: 2 First American Title Insurance Company INFORMATION The Title Insurance Commitment is a legal contract between you and the company. It is issued to show the basis on which we will issue a Title Insurance Policy to you. The Policy will insure you against certain risks to the land title, subject to the limitations shown in the policy. The Company will give you a sample of the Policy form, if you ask. The Commitment is based on the land title as of the Commitment Date. Any changes in the land title or the transaction may affect the Commitment and the Policy. The Commitment is subject to its Requirements, Exceptions and Conditions. This information is not part of the title insurance commitment. TABLE OF CONTENTS Page Agreement to Issue Policy 3 Schedule A 1. Commitment Date 4 2. Policies to be Issued, Amounts and Proposed Insured 4 3. Interest in the Land and Owner 4 4. Description of the Land 4 Schedule B-1 - Requirements Schedule B-2 - Exceptions Conditions YOU SHOULD READ THE COMMITMENT VERY CAREFULLY. If you have any questions about the Commitment, please contact the issuing office. Form No. 1068-2 Commitment No.: NCS-700079-ONT1 ALTA Plain Language Commitment Page Number: 3 COMMITMENT FOR TITLE INSURANCE Issued by First American Title Insurance Company Agreement to Issue Policy We agree to issue a policy to you according to the terms of this Commitment. W h e n w e s h o w t h e p o l i c y a m o u n t a n d y o u r n a m e a s t h e p r o p o s e d i n s u r e d i n S c h e d u l e A , t h i s Commitment becomes effective as of the Commitment Date shown in Schedule A. If the Requirements shown in this Commitment have not been met within six months after the Commitment Date, our obligation under this Commitment will end. Also, our obligation under this Commitment will end when the Policy is issued and then our obligation to you will be under the Policy. Our obligation under this Commitment is limited by the following: The Provisions in Schedule A. The Requirements in Schedule B-1. The Exceptions in Schedule B-2. The Conditions. This Commitment is not valid without Schedule A and Sections 1 and 2 of Schedule B. Form No. 1068-2 Commitment No.: NCS-700079-ONT1 ALTA Plain Language Commitment Page Number: 4 SCHEDULE A 1. Commitment Date: December 04, 2014 at 7:30 A.M. 2. Policy or Policies to be issued: Amount (A) ALTA Standard Owner's Policy $TBD Proposed Insured: Silverock Development, LLC (B) ALTA Standard Loan Policy $TBD Proposed Insured: To Be Determined 3. (A) The estate or interest in the land described in this Commitment is: Fee Simple (B) Title to said estate or interest at the date hereof is vested in: La Quinta Redevelopment Agency, a public body, corporate and politics as to Parcels F through N and City of La Quinta, a California municipal corporation and Charter City as to Parcels 1 through 22 and Parcels A through E 4. The land referred to in this Commitment is situated in the City of La Quinta, County of Riverside, State of California, and is described as follows: PARCELS 1 THROUGH 22, INCLUSIVE AND A THROUGH N, INCLUSIVE OF PARCEL MAP NO. 33367 IN THE CITY OF LA QUINTA, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, AS PER MAP FILED ON JANUARY 24, 2008 IN BOOK 224 PAGES 24 THROUGH 39 OF PARCEL MAPS, IN THE OFFICE OF THE COUNTY RECORDER OF SAID COUNTY. APN'S: 777-060-009, 777-060-018 THRU 777-060-020, 777-060-052, 777-060,-055 THRU 777- 060-69, 777-490-001 THRU 777-490-018, 776-150-019 THRU 776-150-025 AND 770-200-025 THRU 770-027 Form No. 1068-2 Commitment No.: NCS-700079-ONT1 ALTA Plain Language Commitment Page Number: 5 SCHEDULE B SECTION ONE REQUIREMENTS The following requirements must be met: (A) Pay the agreed amounts for the interest in the land and/or the mortgage to be insured. (B) Pay us the premiums, fees and charges for the policy. (C) Documents satisfactory to us creating the interest in the land and/or the mortgage to be insured must be signed, delivered and recorded. (D) You must tell us in writing the name of anyone not referred to in this Commitment who will get an interest in the land or who will make a loan on the land. We may then make additional requirements or exceptions. (E) Releases(s) or Reconveyance(s) of Item(s): None (F) Other: None (G) You must give us the following information: 1. Any off record leases, surveys, etc. 2. Statement(s) of Identity, all parties. 3. Other: None The following additional requirements, as indicated by "X", must be met: [X] (H) Provide information regarding any off-record matters, which may include, but are not limited to: leases, recent works of improvement, or commitment statements in effect under the Environmental Responsibility Acceptance Act, Civil Code Section 850, et seq. The Company's Owner's Affidavit form(as provided by company) must be completed and submitted prior to close in order to satisfy this requirement. This Commitment will then be subject to such further exceptions and/or requirements as may be deemed necessary. [] (I) An ALTA/ACSM survey of recent date, which complies with the current minimum standard detail requirements for ALTA/ACSM land title surveys, must be submitted to the Company for review. This Commitment will then be subject to such further exceptions and/or requirements as may be deemed necessary. [] (J) The following LLC documentation is required: (i) a copy of the Articles of Organization (ii) a copy of the Operating Agreement, if applicable (iii) a Certificate of Good Standing and/or other evidence of current Authority to Conduct Business within the State (iv) express Company Consent to the current transaction Form No. 1068-2 Commitment No.: NCS-700079-ONT1 ALTA Plain Language Commitment Page Number: 6 [] (K) The following partnership documentation is required : (i) a copy of the partnership agreement, including all applicable amendments thereto (ii) a Certificate of Good Standing and/or other evidence of current Authority to Conduct Business within the State (iii) express Partnership Consent to the current transaction [] (L) The following corporation documentation is required: (i) a copy of the Articles of Incorporation (ii) a copy of the Bylaws, including all applicable Amendments thereto (iii) a Certificate of Good Standing and/or other evidence of current Authority to Conduct Business within the State (iv) express Corporate Resolution consenting to the current transaction [] (M) Based upon the Company's review of that certain partnership/operating agreement dated Not disclosed for the proposed insured herein, the following requirements must be met: Any further amendments to said agreement must be submitted to the Company, together with an affidavit from one of the general partners or members stating that it is a true copy, that said partnership or limited liability company is in full force and effect, and that there have been no further amendments to the agreement. This Commitment will then be subject to such further requirements as may be deemed necessary. [] (N) A copy of the complete lease, as referenced in Schedule A, #3 herein, together with any amendments and/or assignments thereto, must be submitted to the Company for review, along with an affidavit executed by the present lessee stating that it is a true copy, that the lease is in full force and effect, and that there have been no further amendments to the lease. This Commitment will then be subject to such further requirements as may be deemed necessary. [X] (O) Approval from the Company's Underwriting Department must be obtained for issuance of the policy contemplated herein and any endorsements requested thereunder. This Commitment will then be subject to such further requirements as may be required to obtain such approval. [] (P) Potential additional requirements, if ALTA Extended coverage is contemplated hereunder, and work on the land has commenced prior to close, some or all of the following requirements, and any other requirements which may be deemed necessary, may need to be met: [] (Q) The Company's "Mechanic's Lien Risk Addendum" form must be completed by a Company employee, based upon information furnished by the appropriate parties involved. [] (R) The Company's "Indemnity Agreement I" must be executed by the appropriate parties. [] (S) Financial statements from the appropriate parties must be submitted to the Company for review. [] (T) A copy of the construction contract must be submitted to the Company for review. [] (U) An inspection of the land must be performed by the Company for verification of the phase of construction. Form No. 1068-2 Commitment No.: NCS-700079-ONT1 ALTA Plain Language Commitment Page Number: 7 SCHEDULE B SECTION TWO EXCEPTIONS Any policy we issue will have the following exceptions unless they are taken care of to our satisfaction. The printed exceptions and exclusions from the coverage of the policy or policies are set forth in Exhibit A attached. Copies of the policy forms should be read. They are available from the office which issued this Commitment. 1. General and special taxes and assessments for the fiscal year 2014-2015 are exempt. If the exempt status is terminated an additional tax may be levied. A.P. Nos.: 777-060-009-2, 777-060- 018-0, 777-060-019-1, 777-060-020-1, 777-060-052-0, 777-060-055-3, 777-060-056-4, 777-060- 057-5, 777-060-058-6, 777-060-059-7, 777-060-060-7, 777-060-061-8, 777-060-062-9, 777-060- 063-0, 777-060-064-1, 777-060-065-2, 777-060-066-3, 777-060-067-4, 777-060-068-5, 777-060- 069-6, 777-490-001-3, 777-490-002-4, 777-490-003-5, 777-490-004-6, 777-490-005-7, 777-490- 006-8, 777-490-007-9, 777-490-008-0, 777-490-009-1, 777-490-010-1, 777-490-011-2, 777-490- 012-3, 777-490-013-4, 777-490-014-5, 777-490-015-6, 777 -490-016-7, 777-490-017-8, 777- 490-018-9, 770-200-025-9, 770-200-026-0, 770-200-027-1, 776-150-019-2, 776-150-020-2, 776- 150-021-3, 776-150-022-4, 776-150-023-5, 776-150-024-6 and 776-150-025-7. 2. The lien of supplemental taxes, if any, assessed pursuant to Chapter 3.5 commencing with Section 75 of the California Revenue and Taxation Code. 3. Water rights, claims or title to water, whether or not shown by the public records. 4. A right of way for ditches and canals as reserved by the United States of America in the patent recorded July 14, 1910 in Book 6 of Patents, Page 1. 5. A right of way for ditches and canals as reserved by the United States of America in the patent recorded May 16, 1914 in Book 6 of Patents, Page 307. 6. A right of way for ditches and canals as reserved by the United States of America in the patent recorded September 2, 1922 in Book 8 of Patents, Page 273. 7. An easement for public utilities and incidental purposes, recorded February 24, 1926 in Book 664, Page 337 of Deeds. In Favor of: Southern Sierras Power Company Affects: As described therein 8. An easement for public utilities and incidental purposes recorded February 6, 1929 in Book 796 of Deeds, Page 507. In Favor of: Southern Sierras Power Company Affects: As described therein 9. An easement for pole lines and incidental purposes, recorded March 28, 1929 in Book 804 of Deeds, Page 100. In Favor of: Southern Sierras Power Company Affects: As described therein Form No. 1068-2 Commitment No.: NCS-700079-ONT1 ALTA Plain Language Commitment Page Number: 8 10. An easement for public utilities and incidental purposes, recorded April 01, 1929 in Book 806 of Deeds, Page 220. In Favor of: Southern Sierras Power Company Affects: As described therein 11. An easement for public utilities and incidental purposes, recorded December 21, 1937 in Book 353, Page 282 of Official Records. 12. An easement for public utilities and incidental purposes, recorded January 03, 1938 in Book 355, Page 586 of Official Records. In Favor of: Nevada California Electric Company Affects: As described therein 13. An easement for public utilities and incidental purposes, recorded May 14, 1952 in Book 1368, Page 365 of Official Records. In Favor of: Imperial Irrigation District Affects: Parcel 11 14. An easement for pipe lines and incidental purposes, recorded December 15, 1952 in Book 1424, Page 200 of Official Records. In Favor of: The United State of America Affects: As described therein 15. An easement for pipe lines and incidental purposes, recorded July 02, 1953 in Book 1487, Page 425 of Official Records. In Favor of: The United State of America Affects: As described therein 16. An easement for pipe line and incidental purposes, recorded May 19, 1955 in Book 1740, Page 345 of Official Records. In Favor of: Imperial Irrigation District Affects: Parcel 10 17. An easement for power lines and incidental purposes, recorded May 23, 1955 in Book 1741, Page 466 of Official Records. In Favor of: Imperial Irrigation District Affects: Parcel 10 18. An easement for public utilities and incidental purposes, recorded June 23, 1958 in Book 1756, Page 278 of Official Records. In Favor of: Imperial Irrigation District Affects: Parcel 2 19. An easement for power lines and incidental purposes, recorded April 26, 1961 as Instrument No. 35578 of Official Records. In Favor of: Imperial Irrigation District Affects: Parcels 11 and 12 20. An easement for public utilities and incidental purposes, recorded November 06, 1985 as Instrument No. 250971 of Official Records. In Favor of: General Telephon Company of California, a corporation Form No. 1068-2 Commitment No.: NCS-700079-ONT1 ALTA Plain Language Commitment Page Number: 9 Affects: Parcel 15 21. The terms and provisions contained in the document entitled "Resolution No. 86-48" recorded May 04, 1990 as Instrument No. 164277 of Official Records. 22. An easement for public utilities and incidental purposes, recorded May 07, 1990 as Instrument No. 167234 of Official Records. In Favor of: General Telephone Company of California, a corporation Affects: As described therein 23. An easement for public utilities and incidental purposes, recorded May 23, 1990 as Instrument No. 188795 of Official Records. In Favor of: City of La Quinta, a municipal corporation Affects: Parcel 1 24. An easement for pipe lines and necessary devices and appurtenances and incidental purposes, recorded August 03, 1990 as Instrument No. 287666 of Official Records. In Favor of: The United States of America Affects: Parcel G 25. An easement for pipe lines and necessary devices and appurtenances and incidental purposes, recorded August 03, 1990 as Instrument No. 287668 of Official Records. In Favor of: The United States of America Affects: Parcels I and 21 26. An easement for public utilities and incidental purposes, recorded August 28, 1991 as Instrument No. 297804 of Official Records. In Favor of: GTE California Incorporated, a corporation Affects: Parcel 15 27. An irrevocable offer of dedication for public streets and public utility and incidental purposes, recorded April 07, 1999 as Instrument No. 147656 of Official Records. To: City of La Quinta, a municipal corporation Affects: Parcels G and N 28. An easement for public utilities and incidental purposes, recorded September 08, 1999 as Instrument No. 1999-402112 of Official Records. In Favor of: GTE California Incorporated, a corporation Affects: Parcels G, E and N 29. An easement for public right of way and roadway and incidental purposes, recorded February 18, 2000 as Instrument No. 2000-059968 of Official Records. In Favor of: City of La Quinta, a charter city Affects: As described therein 30. An easement for build and maintain an access, road, and devices and appurtenances necessary for such access and incidental purposes, recorded September 18, 2000 as Instrument No. 2000- 364484 of Official Records. In Favor of: Coachella Valley Water District Form No. 1068-2 Commitment No.: NCS-700079-ONT1 ALTA Plain Language Commitment Page Number: 10 Affects: Parcels 15 and G 31. Easements, Covenants and Conditions contained in the deed from KSL Land Holdings, Inc., a Delaware corporation, as Grantor, to La Quinta Redevelopment Agency, a public body corporate and politic, as Grantee, recorded June 27, 2002 as Instrument No. 2002-352579 of Official Records. Reference being made to the document for full particulars, but deleting any covenant, condition, or restriction indicating a preference, limitation or discrimination based on race, color, religion, sex, sexual orientation, familial status, disability, handicap, national origin, genetic information, gender, gender identity, gender expression, source of income (as defined in California Government Code § 12955(p)) or ancestry, to the extent such covenants, conditions or restrictions violation 42 U.S.c. § 3604(c) or California Government Code § 12955. Lawful restrictions under state and federal law on the age of occupants in senior housing or housing for older persons shall not be construed as restrictions based on familial status. 32. The terms and provisions contained in the document entitled "Notice of Discontinue Use of Easements Boulder Canyon Project All American Canal system, Coachella Division, California" recorded December 06, 2004 as Instrument No. 2004-0967905 of Official Records. 33. An easement for public utilities and incidental purposes, recorded April 28, 2005 as Instrument No. 2005-0337291 of Official Records. In Favor of: Southern California Gas Company, a corporation, its successors and/or assigns Affects: As described therein 34. The terms and provisions contained in the document entitled "Domestic Water and Sanitation System Installation and Irrigation System Agreement" recorded October 14, 2005 as Instrument No. 2005-0852063 of Official Records. 35. The terms and provisions contained in the document entitled "Grant Deed" recorded February 01, 2007 as Instrument No. 2007-0076268 of Official Records. By and between La Quinta Redevelopment Agency, a public body, corporate and politic and the City of La Quinta, a California municipal corporation and charter city 36. The terms and provisions contained in the document entitled "Resolution 2007-098" recorded October 26, 2007 as Instrument No. 2007-0660684 of Official Records. 37. An easement shown or dedicated on the Map as referred to in the legal description For: sewer and incidental purposes. Affects: Parcel I 38. An easement shown or dedicated on the Map as referred to in the legal description For: pedestrian access and incidental purposes. Affects: Parcels 1 and A 39. An easement shown or dedicated on the Map as referred to in the legal description For: pipeline easement for storm drain & lake level maintenance and incidental purposes. Affects: Parcels 1, 14 and 19 Form No. 1068-2 Commitment No.: NCS-700079-ONT1 ALTA Plain Language Commitment Page Number: 11 40. An easement for sewer pipeline and incidental purposes, recorded May 07, 2008 as Instrument No. 2008-0242520 of Official Records. In Favor of: Coachella Valley Water District, a public agency of the State of California, and its successors and assigns Affects: Parcel 10 41. The terms and provisions contained in the document entitled "Grant Deed" recorded March 04, 2011 as Instrument No. 2011-0100371 of Official Records. By and between La Quinta Redevelopment Agency, a public body, corporate and politic and the City of La Quinta, a California municipal corporation and charter city 42. The terms and provisions contained in the document entitled "Grant Deed" recorded March 04, 2011 as Instrument No. 2011-0100372 of Official Records. By and between La Quinta Redevelopment Agency, a public body, corporate and politic and the City of La Quinta, a California municipal corporation and charter city 43. The terms and provisions contained in the document entitled "Quitclaim Deed" recorded September 03, 2014 as Instrument No. 2014-0334253 of Official Records. Successor Agency, a public body, corporate and politic pursuant to Health and Safety Code Section 34173 and City of La Quinta, a California municipal corporation and charter city 44. The terms and provisions contained in the document entitled "Quitclaim Deed" recorded September 03, 2014 as Instrument No. 2014-0334254 of Official Records. Successor Agency, a public body, corporate and politic pursuant to Health and Safety Code Section 34173 and City of La Quinta, a California municipal corporation and charter city 45. The terms and provisions contained in the document entitled "Quitclaim Deed" recorded September 03, 2014 as Instrument No. 2014-0334255 of Official Records. Successor Agency, a public body, corporate and politic pursuant to Health and Safety Code Section 34173 and City of La Quinta, a California municipal corporation and charter city 46. The terms and provisions contained in the document entitled "Quitclaim Deed" recorded September 03, 2014 as Instrument No. 2014-0334256 of Official Records. Successor Agency, a public body, corporate and politic pursuant to Health and Safety Code Section 34173 and City of La Quinta, a California municipal corporation and charter city 47. The terms and provisions contained in the document entitled "Quitclaim Deed" recorded September 03, 2014 as Instrument No. 2014-0334257 of Official Records. Successor Agency, a public body, corporate and politic pursuant to Health and Safety Code Section 34173 and City of La Quinta, a California municipal corporation and charter city 48. The terms and provisions contained in the document entitled "Quitclaim Deed" recorded September 03, 2014 as Instrument No. 2014-0334258 of Official Records. Successor Agency, a public body, corporate and politic pursuant to Health and Safety Code Section 34173 and City of La Quinta, a California municipal corporation and charter city 49. The terms and provisions contained in the document entitled "Quitclaim Deed" recorded September 03, 2014 as Instrument No. 2014-0334259 of Official Records. Successor Agency, a public body, corporate and politic pursuant to Health and Safety Code Section 34173 and City of La Quinta, a California municipal corporation and charter city 50. The terms and provisions contained in the document entitled "Quitclaim Deed" recorded September 03, 2014 as Instrument No. 2014-0334260 of Official Records. Successor Agency, a public body, corporate and politic pursuant to Health and Safety Code Section 34173 and City of La Quinta, a California municipal corporation and charter city Form No. 1068-2 Commitment No.: NCS-700079-ONT1 ALTA Plain Language Commitment Page Number: 12 51. The terms and provisions contained in the document entitled "Quitclaim Deed" recorded September 03, 2014 as Instrument No. 2014-0334261 of Official Records. Successor Agency, a public body, corporate and politic pursuant to Health and Safety Code Section 34173 and City of La Quinta, a California municipal corporation and charter city 52. The terms and provisions contained in the document entitled "Quitclaim Deed" recorded September 03, 2014 as Instrument No. 2014-0334262 of Official Records. Successor Agency, a public body, corporate and politic pursuant to Health and Safety Code Section 34173 and City of La Quinta, a California municipal corporation and charter city 53. The terms and provisions contained in the document entitled "Quitclaim Deed" recorded September 03, 2014 as Instrument No. 2014-0334263 of Official Records. Successor Agency, a public body, corporate and politic pursuant to Health and Safety Code Section 34173 and City of La Quinta, a California municipal corporation and charter city 54. The terms and provisions contained in the document entitled "Quitclaim Deed" recorded September 03, 2014 as Instrument No. 2014-0334264 of Official Records. Successor Agency, a public body, corporate and politic pursuant to Health and Safety Code Section 34173 and City of La Quinta, a California municipal corporation and charter city 55. An easement for pipelines and conduits and incidental purposes, recorded November 30, 2014 as Instrument No. 2014-0417728 of Official Records. In Favor of: Imperial Irrigation District, an irrigation district, its successors and assigns Affects: as described therein Terms and provisions contained in the above document. 56. Rights of parties in possession. Form No. 1068-2 Commitment No.: NCS-700079-ONT1 ALTA Plain Language Commitment Page Number: 13 INFORMATIONAL NOTES 1. The property covered by this report is vacant land. 2. According to the public records, there has been no conveyance of the land within a period of twenty four months prior to the date of this report, except as follows: A document recorded September 03, 2014 as Instrument No. 2014-0334253 of Official Records. From: Successor Agency, a public body, corporate and politic pursuant to Health and Safety Code Section 34173 To: City of La Quinta, a California municipal corporation and charter city A document recorded September 03, 2014 as Instrument No. 2014-0334254 of Official Records. From: Successor Agency, a public body, corporate and politic pursuant to Health and Safety Code Section 34173 To: City of La Quinta, a California municipal corporation and charter city A document recorded September 03, 2014 as Instrument No. 2014-0334255 of Official Records. From: Successor Agency, a public body, corporate and politic pursuant to Health and Safety Code Section 34173 To: City of La Quinta, a California municipal corporation and charter city A document recorded September 03, 2014 as Instrument No. 2014-0334256 of Official Records. From: Successor Agency, a public body, corporate and politic pursuant to Health and Safety Code Section 34173 To: City of La Quinta, a California municipal corporation and charter city A document recorded September 03, 2014 as Instrument No. 2014-0334257 of Official Records. From: Successor Agency, a public body, corporate and politic pursuant to Health and Safety Code Section 34173 To: City of La Quinta, a California municipal corporation and charter city A document recorded September 03, 2014 as Instrument No. 2014-0334258 of Official Records. From: Successor Agency, a public body, corporate and politic pursuant to Health and Safety Code Section 34173 To: City of La Quinta, a California municipal corporation and charter city A document recorded September 03, 2014 as Instrument No. 2014-0334259 of Official Records. From: Successor Agency, a public body, corporate and politic pursuant to Health and Safety Code Section 34173 To: City of La Quinta, a California municipal corporation and charter city A document recorded September 03, 2014 as Instrument No. 2014-0334260 of Official Records. From: Successor Agency, a public body, corporate and politic pursuant to Health and Safety Code Section 34173 To: City of La Quinta, a California municipal corporation and charter city Form No. 1068-2 Commitment No.: NCS-700079-ONT1 ALTA Plain Language Commitment Page Number: 14 A document recorded September 03, 2014 as Instrument No. 2014-0334261 of Official Records. From: Successor Agency, a public body, corporate and politic pursuant to Health and Safety Code Section 34173 To: City of La Quinta, a California municipal corporation and charter city A document recorded September 03, 2014 as Instrument No. 2014-0334262 of Official Records. From: Successor Agency, a public body, corporate and politic pursuant to Health and Safety Code Section 34173 To: City of La Quinta, a California municipal corporation and charter city A document recorded September 03, 2014 as Instrument No. 2014-0334263 of Official Records. From: Successor Agency, a public body, corporate and politic pursuant to Health and Safety Code Section 34173 To: City of La Quinta, a California municipal corporation and charter city A document recorded September 03, 2014 as Instrument No. 2014-0334264 of Official Records. From: Successor Agency, a public body, corporate and politic pursuant to Health and Safety Code Section 34173 To: City of La Quinta, a California municipal corporation and charter city 3. This preliminary report/commitment was prepared based upon an application for a policy of title insurance that identified land by street address or assessor's parcel number only. It is the responsibility of the applicant to determine whether the land referred to herein is in fact the land that is to be described in the policy or policies to be issued. The map attached, if any, may or may not be a survey of the land depicted hereon. First American Title Insurance Company 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. *****To obtain wire instructions for deposit of funds to your escrow file please contact your Escrow Officer.***** Form No. 1068-2 Commitment No.: NCS-700079-ONT1 ALTA Plain Language Commitment Page Number: 15 CONDITIONS 1. DEFINITIONS (a)"Mortgage" means mortgage, deed of trust or other security instrument. (b)"Public Records" means title records that give constructive notice of matters affecting the title according to the state law where the land is located. 2. LATER DEFECTS The Exceptions in Schedule B - Section Two may be amended to show any defects, liens or encumbrances that appear for the first time in the public records or are created or attached between the Commitment Date and the date on which all of the Requirements (a) and (c) of Schedule B - Section One are met. We shall have no liability to you because of this amendment. 3. EXISTING DEFECTS If any defects, liens or encumbrances existing at Commitment Date are not shown in Schedule B, we may amend Schedule B to show them. If we do amend Schedule B to show these defects, liens or encumbrances, we shall be liable to you according to Paragraph 4 below unless you knew of this information and did not tell us about it in writing. 4. LIMITATION OF OUR LIABILITY Our only obligation is to issue to you the Policy referred to in this Commitment, when you have met its Requirements. If we have any liability to you for any loss you incur because of an error in this Commitment, our liability will be limited to your actual loss caused by your relying on this Commitment when you acted in good faith to: comply with the Requirements shown in Schedule B - Section One or eliminate with our written consent any Exceptions shown in Schedule B - Section Two. We shall not be liable for more than the Policy Amount shown in Schedule A of this Commitment and our liability is subject to the terms of the Policy form to be issued to you. 5. CLAIMS MUST BE BASED ON THIS COMMITMENT Any claim, whether or not based on negligence, which you may have against us concerning the title to the land must be based on this commitment and is subject to its terms. Form No. 1068-2 Commitment No.: NCS-700079-ONT1 ALTA Plain Language Commitment Page Number: 16 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 guidelines 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, 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. 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 let 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 here 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 record 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 consumers 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) = Form No. 1068-2 Commitment No.: NCS-700079-ONT1 ALTA Plain Language Commitment Page Number: 17 = 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: 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. 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: 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) 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 1. 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 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 Form No. 1068-2 Commitment No.: NCS-700079-ONT1 ALTA Plain Language Commitment Page Number: 18 This policy does not insure against loss or damage by reason of the matters shown in parts one and two following: Part One 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 1. 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. 5. 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. SCHEDULE B This policy does not insure against loss or damage by reason of the matters shown in parts one and two following: Part One 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. 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, 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. Form No. 1068-2 Commitment No.: NCS-700079-ONT1 ALTA Plain Language Commitment Page Number: 19 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 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 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, 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. 8. AMERICAN LAND TITLE ASSOCIATION OWNER'S POLICY - 1992 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 Form No. 1068-2 Commitment No.: NCS-700079-ONT1 ALTA Plain Language Commitment Page Number: 20 (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 a 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, attorneys' fees or expenses) which arise by reason of: Part One: 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. ALTA RESIDENTIAL TITLE INSURANCE POLICY (6-1-87) 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: (a) and use (b) improvements on the land (c) and division (d) 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: (a) a notice of exercising the right appears in the public records on the Policy Date (b) 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: (a) that are created, allowed, or agreed to by you (b) that are known to you, but not to us, on the Policy Date -- unless they appeared in the public records (c) that result in no loss to you (d) 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: (a) to any land outside the area specifically described and referred to in Item 3 of Schedule A OR (b) in streets, alleys, or waterways that touch your land This exclusion does not limit the access coverage in Item 5 of Covered Title Risks. 11. EAGLE PROTECTION OWNER'S POLICY CLTA HOMEOWNER'S POLICY OF TITLE INSURANCE - 1998 ALTA HOMEOWNER'S POLICY OF TITLE INSURANCE - 1998 Covered Risks 14 (Subdivision Law Violation). 15 (Building Permit). 16 (Zoning) and 18 (Encroachment of boundary walls or fences) are subject to Deductible Amounts and Maximum Dollar Limits of Liability Form No. 1068-2 Commitment No.: NCS-700079-ONT1 ALTA Plain Language Commitment Page Number: 21 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 ordinances, laws and regulations concerning: a. building b. zoning c. land use d. improvements on the land e. land division f. environmental protection This exclusion does not apply to violations or the enforcement of these matters if notice of the violation or enforcement appears in the Public Records at the Policy Date. This exclusion does not limit the coverage described in Covered Risk 14, 15, 16, 17 or 24. 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 apply to violations of building codes if notice of the violation appears in the Public Records at the Policy Date. 3. The right to take the Land by condemning it, unless: a. a notice of exercising the right appears in the Public Records at the Policy Date; or b. the taking happened before the Policy Date and is binding on You if You bought the Land without Knowing of the taking. 4. Risks: a. that are created, allowed, or agreed to by You, whether or not they appear in the Public Records; b. that are Known to You at the Policy Date, but not to Us, unless they appear 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.d, 22, 23, 24 or 25. 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 18. 12. THIRD GENERATION EAGLE LOAN POLICY AMERICAN LAND TITLE ASSOCIATION EXPANDED COVERAGE RESIDENTIAL LOAN POLICY (1/01/08) 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 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 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 Form No. 1068-2 Commitment No.: NCS-700079-ONT1 ALTA Plain Language Commitment Page Number: 22 (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 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 (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 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 Title 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. Form No. 1068-2 Commitment No.: NCS-700079-ONT1 ALTA Plain Language Commitment Page Number: 23 (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 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 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 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.