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LLA-Homestead Rd L.P.-10977, 22036 & 22032 Acacia Way, APNs: 326-02-067, 326-02-068, 362-02-069Cr 0z' FIRST AMERICAN TITLE NCS-164563-SC (RS) RECORDING REQUESTED BY City of Cupertino WHEN RECORDED MAIL TO City of Cupertino 10300 Torre Avenue Cupertino, CA 95014 NO FEE IN ACCORDANCE WITH GOV. CODE 6103 DOCUMENT: 18411138 �I Pages 24 Fees ... 76.00 Taxes... Copies. AMT PAID 76.00 BRENDA DAVIS SANTA CLARA COUNTY RECORDER Recorded at the request of First American Title Company RIDE # 005 6/09/2005 800AM (SPACE ABOVE THIS LINE FOR RECORDER'S USE) LOTLINE ADJUSTMENT Homestead Road, L.P., a California limited partnership who acquired title as Homestead Road, L.P., a California liability company Lots 5 and 6 and a Lot 4 (being a Portion of lot 3 and all of lot 4 as described on Lotline Adjustment recorded May 28, 2005 as instrument No. 18393344, Official Records) of Tract No. 9313 recorded in the Office of the Recorder of the County of Santa Clara, on August 7, 2001 in Book 741 of Maps, pages 16 and 17 APNs: 326-02-067, 326-02-068 and 326-02-069 Original ❑ For Fast Endorsement ... LOT LINE ADJUSTMENT Owner: Homestead Road, L.P., a California limited partnership who acquired title as Homestead Road, L.P., a California liability company Lots 5 and 6 and a Lot 4 (being a Portion of lot 3 and all of lot 4 as described on Lotline Adjustment recorded May 28, 2005 as instrument No. 18393344, Official Records) of Tract No. 9313 recorded in the Office of the Recorder of the County of Santa Clara, on August 7, 2001 in Book 741 of Maps, pages 16 and 17 APNs: 326-02-067, 326-02-068 and 326-02-069 ACTION BY THE CITY ENGINEER APPROVING A LOT LINE ADJUSTMENT BETWEEN TWO OR MORE ADJACENT PARCELS BE IT RESOLVED BY THE CITY ENGINEER OF THE CITY OF CUPERTINO: A request for a lot line adjustment between, lots 4, 5, and 6, as designated on the attached plat and descriptions marked Exhibit "A", and attached hereto, has been submitted by the record owners of the above properties (as shown in Exhibit `B", attached) of the City of Cupertino with the request that an adjustment of lot lines be approved by the City Engineer. The City Engineer hereby finds that the lot line adjustment requested is between two or more adjacent parcels, that the land taken from one of the parcels is added to the adjacent parcel and that a greater number of parcels than originally existed would not be created. Based on the above facts and findings and by the authority of Section 18.08.0101-1 of the City of Cupertino Municipal Code and Section #66412d of the Subdivision Map Act, said lot line adjustment is hereby approved. This lot line adjustment shall be totally null and void without further act of the City of Cupertino, in the event that the change in title interest of ownership (including lien holder interest) is not recorded by Grant Deeds within twelve (12) months from the approved date and/or in the event that any change in title interest of ownership (including lien holder interest) from the specified on the preliminary title report designated on Exhibit `B" and attached hereto, occurs prior to the recordation of the grant deed conveying the real property in conformity to Exhibit "A". Approved this � day of V , 2005. RALPH A. QUALLS, JR CITY ENGINEER CITY OF CUPERTINO C.E. # 22046 BY• C�Q, SIERRA WEST LAND SURVEYING, INC. 1359 Sand Hill Ct. Oakdale, Ca. 95361 Project Number: 1112 Date: 5/15/2005 Legal Description for Lot 4 Before 2"d Lot Line Adjustment EXHIBITA All that real property situate in the City of Cupertino, County of Santa Clara, State of California, being a portion of Lot 3 and all of Lot 4 as said lots are shown on that certain map entitled "Tract No. 9313", which map was filed for record in the office of the Recorder of the Santa Clara County, on August 7, 2001 in Book 741 of Maps at Pages 16 through 17, inclusive, and being more particularly described as follows: BEGINNING at the most southeasterly corner of Lot 4, as said corner and lot are shown on said map; thence northerly along the easterly line of said lot, as said line is shown on said map, North 00' 10' 00" East, a distance of 67.00 feet and North 29' 24' 43" East, a distance of 22.00 feet to the southerly right of way line of Acacia Street as said street is shown on said map and to the beginning of a non -tangent curve to the right from which a radial line bears North 05° 28' 08" East; thence northwesterly along said curve having a radius of 46.00 feet, through a central angle of 46' 42' 54" for an arc length of 37.51 feet: thence southwesterly leaving said right of way line, South 41 ° 20' 06" West, a distance of 43.43 feet; thence North 89' 50' 00" West, a distance of 68.16 feet to the westerly line of Lot 3, as said line is shown on said map; thence southerly along the westerly line of Lots 3 and 4, South 00' 10' 00" West, a distance of 71.00 feet to the most southwesterly corner of said Lot 4; thence along the southerly line of said lot as said line is shown on said map, South 89' 50' 00" East, a distance of 118.00 feet to the POINT OF BEGINNING and containing an area of 9,459 square feet, more or less. All bearings in this description are based on the bearing North 89' 50' 00" West, for the centerline of Homestead Road, as shown on that certain map entitled "Tract No. 801, Homestead Villa" which map was filed for record in the office of the Recorder of the Santa Clara County, on April 9, 1951 in Book 33 of Maps at Pages 16 through 17, inclusive. This description was prepared by me or under my direction. Bradley A. Bilbo L.S. 6141 Exp. 3/31 /06 BRADLEY A. BILBO EXR 3131/06 NO. 6141 C Page 1 of 1 D �te SIERRA WEST LAND SURVEYING, INC. 1359 Sand Hill Ct. Oakdale, Ca. 95361 Project Number: 1112 Date: June 1, 2005 Legal Description for Lot 4 After Lot Line Adjustment E)MIBITA All that real property situate in the City of Cupertino, County of Santa Clara, State of California, being a portion of Lot 4 as said lot is described in that certain Lot Line Adjustment filed in the City of Cupertino and recorded in the office of the Recorder of Santa Clara County on May 27, 2005 as Document No. 18393344,and being more particularly described as follows: BEGINNING at the most southwesterly comer of Lot 4, as said corner and lot are described in said document; thence northerly along the westerly line of said lot, North 00' 10' 00" East, a distance of 71.00 feet; thence easterly leaving said line, South 89' 50' 00" East, a distance of 68.16 feet; thence North 410 20' 06" East, a distance of 43.43 feet to the southerly right of way line of Acacia Street as said street is shown on that certain map entitled "Tract No. 9313", which map was filed for record in the office of the Recorder of the Santa Clara County, on August 7, 2001 in Book 741 of Maps at Pages 16 through 17, inclusive, and to the beginning of a non -tangent curve to the left from which a radial line bears North 52' 11' 0 1 " East; thence southeasterly along said curve having a radius of 46.00 feet through a central angle of 18" 03' 39" for an arc length of 14.50 feet: thence southwesterly leaving said right of way line, South 23' 57' 56" West, a distance of 57.76 feet; thence South 00' 10' 00" West, a distance of 41.00 feet to the southerly line of said Lot 4; thence westerly along said line North 89' 50' 00" West, a distance of 84.00 feet to the POINT OF BEGINNING and containing an area of 6,802 square feet, more or less. All bearings in this description are based on the bearing North 89' 50' 00" West, for the centerline of Homestead Road, as shown on that certain map entitled "Tract No. 801, Homestead Villa" which map was filed for record in the office of the Recorder of the Santa Clara County, on April 9, 1951 in Book 33 of Maps at Pages 16 through 17, inclusive. This description was prepared by me or under my direction. Bradley A. Bil o .S. 6141 Exp. 3/31/06 BRADLEY A. BILDO EXP. 3/31/06 N0. 6141 F CA% iv l d5 Date Page 1 of 1 SIERRA WEST LAND SURVEYING, INC. 1359 Sand Hill Ct. Oakdale, Ca. 95361 Project Number: 1112 Date: 5/ 15/2005 Legal Description for Lot 5, Tract 9313 Before Lot Line Adjustment EMIBITA All that real property situate in the City of Cupertino, County of Santa Clara, State of California, being described as follows: All of Lot 5 as said lot is shown on that certain map entitled "Tract No. 9313", which map was filed for record in the office of the Recorder of the Santa Clara County, on August 7, 2001 in Book 741 of Maps at Pages 16 through 17. This description was prepared by me or under my direction. Bradley A. Bilbo L. 141 Exp. 3/31/06 BRADLEY A. BILBO EXP. 3/31 /06 NO. 6141 Page I of 1 SIERRA WEST LAND SURVEYING, INC. 1359 Sand Hill Ct. Oakdale, Ca. 95361 Project Number: 1112 Date: June 1, 2005 Legal Description for Lot 5 After Lot Line Adjustment EXHIBITA All that real property situate in the City of Cupertino, County of Santa Clara, State of California, being a portion of Lot 4 as said lot is described in that certain Lot Line Adjustment filed in the City of Cupertino and recorded in the office of the Recorder of Santa Clara County on May 27, 2005 as Document No. 18393344, and a portion of Lot 5 as said lot is shown on that certain map entitled "Tract No. 9313", which map was filed for record in the office of the Recorder of the Santa Clara County, on August 7, 2001 in Book 741 of Maps at Pages 16 through 17, inclusive, and being more particularly described as follows: BEGINNING at the most southeasterly comer of Lot 6, as said comer and lot are shown on said map; thence along the southerly line of Lots 5 and 6 as said line is shown on said map, North 89° 50' 00" West, a distance of 88.58 feet to the TRUE POINT OF BEGINNING; thence along the southerly line of said Lot 5 and the southerly line of said Lot 4, North 89' 50' 00" West, a distance of 75.75 feet; thence northerly leaving said line, North 00' 10' 00" East, a distance of 41.00 feet; thence North 23' 57' 56" East, a distance of 57.76 feet to the southerly right of way line of Acacia Street as said street is shown on said map, and to the beginning of a non -tangent curve to the left from which a radial line bears North 34' 07' 22" East; thence southeasterly along said curve having a radius of 46.00 feet through a central angle of 33' 57' 22" for an arc length of 27.26 feet; thence continuing along said right of way line, South 89 50' 00" East, a distance of 26.75 feet; thence southerly leaving said right of way line, South 00" 10' 00" West, a distance of 86.00 feet to the TRUE POINT OF BEGINNING and containing an area of 6,146 square feet, more or less. All bearings in this description are based on the bearing North 89° 50' 00" West, for the centerline of Homestead Road, as shown on that certain map entitled "Tract No. 801, Homestead Villa" which map was filed for record in the office of the Recorder of the Santa Clara County, on April 9, 1951 in Book 33 of Maps at Pages 16 through 17, inclusive. This description was prepared by me or under my direction. SAND S Bradley A. Bilbo 141 BRADLEY A. BILE;O Date Exp.3/31/06 EXR 3/31/06 NO. 6141 _ CA' Page 1 of i SIERRA WEST LAND SURVEYING, INC. 1359 Sand Hill Ct. Oakdale, Ca. 95361 Project Number: 1112 Date: 5/ 15/2005 Legal Description for Lot 6, Tract 9313 Before Lot Line Adjustment EMIBITA All that real property situate in the City of Cupertino, County of Santa Clara, State of California, being described as follows: All of Lot 6 as said lot is shown on that certain map entitled "Tract No. 9313", which map was filed for record in the office of the Recorder of the Santa Clara County, on August 7, 2001 in Book 741 of Maps at Pages 16 through 17. This description was prepared by me or under my direction. a ey A. B 6141 Exp. 3/31/06 BRADLEY A. BILBO EXP. 3/31/06 NO. 6141 D�s Page 1 of I SIERRA WEST LAND SURVEYING, INC. 1359 Sand Hill Ct. Oakdale, Ca. 95361 Project Number: 1112 Date: 5/15/2005 Legal Description for Lot 6 After Lot Line Adjustment OMUTA All that real property situate in the City of Cupertino, County of Santa Clara, State of California, being a portion of Lot 5 and all of Lot 6 as said lots are shown on that certain map entitled "Tract No. 9313", which map was filed for record in the office of the Recorder of the Santa Clara County, on August 7, 2001 in Book 741 of Maps at Pages 16 through 17, inclusive, and being more particularly described as follows: BEGINNING at the most southeasterly corner of Lot 6, as said corner and lot are shown on said map; thence along the southerly line of Lots 5 and 6 as said line is shown on said map, North 89' 50' 00" West, a distance of 88.58 feet; thence northerly leaving said right of way line, North 00' 10' 00" East, a distance of 86.00 feet to the southerly right of way line of Acacia Street as said street is shown on said map; thence easterly along said right of way line and the northerly line of Lots 5 and 6, South 89' 50' 00" East, a distance of 55.46 feet to the southwesterly right of way line of Maxine Avenue, as said street and right of way line are shown on said map; thence southeasterly along said right of way line, South 20' 53' 40" East, a distance of 92.16 feet to the POINT OF BEGINNING and containing an area of 6,194 square feet, more or less. All bearings in this description are based on the bearing North 89' 50' 00" West, for the centerline of Homestead Road, as shown on that certain map entitled "Tract No. 801, Homestead Villa" which map was filed for record in the office of the Recorder of the Santa Clara County, on April 9, 1951 in Book 33 of Maps at Pages 16 through 17, inclusive. This description was prepared by me or under my direction. Bradley A. Bilbo L.S. 6141 Exp. 3/31 /06 BRADLEY A. BILBO�� EXP.3/31/06 yE NO. 6141 i Page I of 1 S /s' D to _ S 89'50'0" E _ 462.49' _ 182.11' CENTERLINE H O M E S T E A D R O A D ( A PUBLIC ROAD 86 FEET WIDE) \ — — CURVE TABLE CURVE LENGTH RADIUS DELTA TANGENT C1 27.26 46.00 33'57'22" 14.04 C2 30.49 46.00 37*58'59" 15.83 C3 14.50 46.00 18'03'39" 7.31 C4 4.26 46.00 05'18'07" 2.13 C5 37.51 46.00 46.42'54" 19.87 C6 1 49.48 T 31.50 1 90'00'00" 1 31.50 POS LOT 5 LOT 6 �26 25 I KAt: I yJlJ, LU 1 5 4- 0 LOT LINE ADJUSTMENT EXHIBIT TO ACCOMPANY LEGAL DESCRIPTIONS �p VAND S� LANDS OF MOZART DEVELOPMENT CO. CITY OF CUPERTINO, CALIFORNIA ► BI . BRADLEYAL60 THIS EXHIBIT WAS PREPARED BY ME OR UNDER MY DIRECTION. * EXPEYABI N 06 N0. 6141 BRADLEY A. BILBO L.S. 6141 9 ` EXPIRES 03/31 /06 SCALE: 1"=40' N0. REVISIONS DATE: 05/12/05 SIERRA WEST DRAWN BY: BB \ ILAPdD S>iTIM&TIIIYG, IINC- CECKED BY: BB 1359 SAND HILL CT. OAKDALE, CA. 95361 PROJECT NO. 1112 (209) 845-2773 FAX (209) 845-9042 Order Number: NCS-164563-SC Page Number: 1 ,. N, F. f EXHIBIT B r First American Title 1737 North First Street, Suite 100 San Jose, CA 95112 Justin Mozart Homestead Road, L.P., c/o Mozart Development 1068 E. Meadow Circle Palo Alto, CA 94303 Escrow Officer: Renee Stenesen Phone: (408) 451-7800 Buyer: Owner: Homestead Road, L.P. Property: Acacia Way, Cupertino, CA PRELIMINARY REPORT In response to the above referenced application for a policy of title insurance, this company hereby reports that it is prepared to issue, or cause to be issued, as of the date hereof, a Policy or Policies of Title Insurance describing the land and the estate or interest therein hereinafter set forth, insuring against loss which may be sustained by reason of any defect, lien or encumbrance not shown or referred to as an Exception below or not excluded from coverage pursuant to the printed Schedules, Conditions and Stipulations of said Policy forms. The printed Exceptions and Exclusions from the coverage of said 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 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 policy of title insurance and no liability is assumed hereby. If it is desired that liability be assumed prior to the issuance of a policy of title insurance, a Binder or Commitment should be requested. First American Title Insurance Company Order Number: NCS-164563-SC Page Number: 2 EXHIBIT B Dated as of May 20, 2005 at 7:30 A.M. The form of Policy of title insurance contemplated by this report is: 1992 ALTA Owners Policy 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: Homestead Road, L.P., a California limited partnership who acquired title as Homestead Road, L.P., a California liability company The estate or interest in the land hereinafter described or referred to covered by this Report is: A fee as to Parcel One and Two and an easement as to Parcel Three The Land referred to herein is described as follows: (See attached Legal Description) At the date hereof exceptions to coverage in addition to the printed Exceptions and Exclusions in said policy form would be as follows: 1. General and special taxes and assessments for the fiscal year 2005-2006, a lien not yet due or payable. 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. LIMITATIONS, covenants, conditions, restrictions, reservations, exceptions or terms, but deleting any covenant, condition or restriction indicating a preference, limitation or discrimination based on race, color, religion, sex, marital status, ancestry, disability, handicap, familial status, or national origin, to the extent such covenants, conditions or restrictions violate Title 42, Section 3604(c), or California Government Code 12955 or contained in the document recorded September 11, 1951 in Book 2280, page 447, Official Records. CONTAINS mortgagee protection clause. Terms, Covenants, Conditions, Provisions as disclosed in that certain Purchase and Sales Contract dated July 12, 1996 and by an undated Amendment to said purchase and sales contract, between Exxon Corporation, a New Jersey corporation and Hossain E. Khaziri, as disclosed to First American Title by that certain Purchase and Sale Agreement dated September 16, 1996 between Exxon Corporation, a New Jersey corporation and First X Realty, L.P., a Texas limited partnership. First American Title Insurance Company Order Number: NCS-164563-SC Page Number: 3 EXHIBIT B 5. The fact, as disclosed by that certain Grant Deed, recorded June 11, 1998, as Document No. 14230072, Official Records, that some violation of the Environmental Protection Laws may have occurred, which may affect the land. 6. TERMS, conditions and provisions contained in the Grant Deed From : First X Realty, L.P., a limited partnership To : Hossain E. Khaziri, an individual Recorded : June 11, 1998, as Document No. 14230072, Official Records. 7. An easement shown or dedicated on the map filed or recorded August 7, 2001 as Book 741, pages 16 and 17 of Maps For: Public utilities and incidental purposes. and incidental purposes. 8. A Deed of Trust to secure an original indebtedness of $1,875,000.00 recorded April 19, 2005 as Instrument No. 18331570 of Official Records. Dated: April 8, 2005 Trustor: Homestead Road, L.P., a California limited partnership Trustee: Comerica Bank Beneficiary: Comerica Bank Said matter affects this and other property. 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. INFORMATIONAL NOTES General and special taxes and assessments for the fiscal year 2004-2005. First Installment: $647.00, PAID Penalty: $0 Second Installment: $647.00, PAID Penalty: $0 Tax Rate Area: 13.009 A. P. No.: 326-02-066 Said matter affects a portion of said land and other property. 2. General and special taxes and assessments for the fiscal year 2004-2005. First Installment: $639.78, PAID Penalty: $0 Second Installment: $639.78, PAID Penalty: $0 First American Title Insurance Company Order Number: NCS-164563-SC Page Number: 4 Tax Rate Area: 13-009 A. P. No.: 326-02-067 3. General and special taxes and assessments for the fiscal year 2004-2005. First Installment: $608.13, PAID Penalty: $0 Second Installment: $608.13, PAID Penalty: $0 Tax Rate Area: 13-009 A. P. No.: 326-02-068 EXHIBITB 4. General and special taxes and assessments for the fiscal year 2004-2005. First Installment: $608.17, PAID Penalty: $0 Second Installment: $608.17, PAID Penalty: $0 Tax Rate Area: 13-009 A. P. No.: 326-02-069 5. SALE of said land is subject to the County of Santa Clara Transfer Tax of $1.10 per thousand based on equity transferred. First American Title Insurance Company Order Number: NCS-164563-SC Page Number: 5 EXHIBIT B LEGAL DESCRIPTION Real property in the City of Cupertino, County of Santa Clara, State of California, described as follows: Parcel One: Lots 5 and 6, as shown on that certain Map entitled "Tract No. 9313", which Map was filed for record in the office of the Recorder of the County of Santa Clara, State of California on August 7, 2001 in Book 741 of Maps, pages 16 and 17. Parcel Two: All that certain real property in the City of Cupertino, County of Santa Clara, State of California, being a portion of Lot 3 and all of Lot 4 as said lots are shown on that certain map entitled "Tract No. 9313", which map was filed for record in the office of the Recorder of the Santa Clara County, on August 7, 2001 in Book 741 of Maps at pages 16 through 17, inclusive and being more particularly described as follows: Beginning at the most Southeasterly corner of Lot 4, as said corner and lot are shown on said map; thence Northerly along the Easterly line of said lot, as said line is shown on said map, North 00010' 00" East, a distance of 67.00 feet and North 290 24' 43" East, a distance of 22.00 feet to the Southerly right of way line of Acacia Street as said street is shown on said map and to the beginning of a non -tangent curve to the right from which a radial bears North 050 28' 08" East; thence Northwesterly along said curve having a radius of 46.00 feet, through a central angle of 460 42' 54" for an arc length of 37.51 feet; thence Southwesterly leaving said right of way line, South 411 20' 06" West, a distance of 43.43 feet; thence North 890 50' 00" West, a distance of 68.16 feet to the Westerly line of Lot 3, as said line is shown on said map; thence Southerly along the Westerly line of Lots 3 and 4, South 000 10' 00" West, a distance of 71.00 feet to the most Southwesterly corner of said Lot 4; thence along the Southerly line of said lot as said line is shown on said map, South 891 50' 00" East, a distance of 118.00 feet to the point of beginning. Said parcel is as described on the Lotline Adjustment Permit recorded May 28, 2005 as Instrument No. 18393344, Official Records. Parcel Three: A non-exclusive easement for private street purposes over Lot 8 as shown on that certain Map entitled "Tract No. 9313", which Map was filed for record in the office of the Recorder of the County of Santa Clara, State of California on August 7, 2001 in Book 741 of Maps, pages 16 and 17. APN: 326-02-x066, 067, 068, 069 First American Title Insurance Company Order Number: NCS-164563-SC Page Number: 6 EXHIBIT B NOTICEI Section 12413.1 of the California Insurance Code, effective January 1, 1990, requires that any title insurance company, underwritten title company, or controlled escrow company handling funds in an escrow or sub -escrow capacity, wait a specified number of days after depositing funds, before recording any documents in connection with the transaction or disbursing funds. This statute allows for funds deposited by wire transfer to be disbursed the same day as deposit. In the case of cashier's checks or certified checks, funds may be disbursed the next day after deposit. In order to avoid unnecessary delays of three to seven days, or more, please use wire transfer, cashier's checks, or certified checks whenever possible. If you have any questions about the effect of this new law, please contact your local First American Office for more details. NOTICEIT As of January 1, 1991, if the transaction which is the subject of this report will be a sale, you as a party to the transaction, may have certain tax reporting and withholding obligations pursuant to the state law referred to below: In accordance with Sections 18662 and 18668 of the Revenue and Taxation Code, a buyer may be required to withhold an amount equal to three and one-third percent of the sales price in the case of the disposition of California real property interest by either: A seller who is an individual with a last known street address outside of California or when the disbursement instructions authorize the proceeds be sent to a financial intermediary of the seller, OR A corporate seller which has no permanent place of business in California. The buyer may become subject to penalty for failure to withhold an amount equal to the greater of 10 percent of the amount required to be withheld or five hundred dollars ($500). However, notwithstanding any other provision included in the California statutes referenced above, no buyer will be required to withhold any amount or be subject to penalty for failure to withhold if: 1. The sales price of the California real property conveyed does not exceed one hundred thousand dollars ($100,000), OR 2. The seller executes a written certificate, under the penalty of perjury, certifying that the seller is a resident of California, or if a corporation, has a permanent place of business in California, OR 3. The seller, who is an individual, executes a written certificate, under the penalty of perjury, that the California real property being conveyed is the seller's principal residence (as defined in Section 1034 of the Internal Revenue Code). The seller is subject to penalty for knowingly filing a fraudulent certificate for the purpose of avoiding the withholding requirement. The California statutes referenced above include provisions which authorize the Franchise Tax Board to grant reduced withholding and waivers from withholding on a case -by -case basis. The parties to this transaction should seek an attorney's, accountant's, or other tax specialist's opinion concerning the effect of this law on this transaction and should not act on any statements made or omitted by the escrow or closing officer. The Seller May Request a Waiver by Contacting: Franchise Tax Board Withhold at Source Unit P.O. Box 651 Sacramento, CA 95812-0651 (916) 845-4900 First American Title Insurance Company Order Number: NCS-164563-SC Page Number:7 EXHIBIT B Privacy Policy We Are Committed to Safeguarding Customer Information In order to better serve your needs now and in the future, we may ask you to provide us with certain information. We understand that you may be concerned about what we will do with such information - particularly any personal or financial information. We agree that you have a right to know how we will utilize the personal information you provide to us. Therefore, together with our parent company, The First American Corporation, we have adopted this Privacy Policy to govern the use and handling of your personal information. Applicability This Privacy Policy governs our use of the information which you provide to us. It does not govern the manner in which we may use information we have obtained from any other source, such as information obtained from a public record or from another person or entity. First American has also adopted broader guidelines that govern our use of personal information regardless of its source. First American calls these guidelines its Fairinformation Values, a copy of which can be found on our website at www.firstam.com. Types of Information Depending upon which of our services you are utilizing, the types of nonpublic personal information that we may collect include: • Information we receive from you on applications, forms and in other communications to us, whether in writing, in person, by telephone or any other means; • Information about your transactions with us, our affiliated companies, or others; and • Information we receive from a consumer reporting agency. Use of Information We request information from you for our own legitimate business purposes and not for the benefit of any nonaffiliated party. Therefore, we will not release your information to nonaffiliated parties except: (1) as necessary for us to provide the product or service you have requested of us; or (2) as permitted by law. We may, however, store such information indefinitely, including the period after which any customer relationship has ceased. Such information may be used for any internal purpose, such as quality control efforts or customer analysis. We may also provide all of the types of nonpublic personal information listed above to one or more of our affiliated companies. Such affiliated companies include financial service providers, such as title insurers, property and casualty insurers, and trust and investment advisory companies, or companies involved in real estate services, such as appraisal companies, home warranty companies, and escrow companies. Furthermore, we may also provide all the information we collect, as described above, to companies that perform marketing services on our behalf, on behalf of our affiliated companies, or to other financial institutions with whom we or our affiliated companies have joint marketing agreements. Former Customers Even if you are no longer our customer, our Privacy Policy will continue to apply to you. Confidentiality and Security We will use our best efforts to ensure that no unauthorized parties have access to any of your information. We restrict access to nonpublic personal information about you to those individuals and entities who need to know that information to provide products or services to you. We will use our best efforts to train and oversee our employees and agents to ensure that your information will be handled responsibly and in accordance with this Privacy Policy and First American's Fair Information Values We First American Title Insurance Company Order Number: NCS-164563-SC Page Number:8 currently maintain physical, electronic, and procedural safeguards that comply with feder�l..r�da�1bT B guard your nonpublic personal information. First American Title Insurance Company Order Number: NCS-164563-SC Page Number: 9 EXHIBIT P 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 o 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 First American Title Insurance Company Order Number: NCS-164563-SC Page Number: 10 EXHIBIT B 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 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 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. First American Title Insurance Company Order Number: NCS-164563-SC Page Number: 11 E)MIBIT B 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. 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 cisclosed 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, clams or title to water. First American Title Insurance Company Order Number: NCS-164563-SC Page Number: 12 EVIBIT B 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: I. (a) Any law, ordinance or governmental regulation (including but not limited to building and zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating to (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. (b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge. 3. Defects, liens, encumbrances, adverse claims, or other matters: (a) created, suffered, assumed or agreed to by the insured claimant; (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy; (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy; or (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the estate or interest insured by this policy. 4. Any claim, which arises out of the transaction vesting in the insured the estate or interest insured by this policy, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws, that is based on: (i) the transaction creating the estate or interest insured by this policy being deemed a fraudulent conveyance or fraudulent transfer; or (ii) the transaction creating the estate or interest insured by this policy being deemed a preferential transfer except where the preferential transfer results from the failure: (a) to timely record the instrument of transfer; or (b) of such recordation to impart notice to a purchaser for value or 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: I. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. 2. Any facts, rights, interests, or claims which are not shown by the public records but which could be ascertained by an inspection of said land or by making inquiry of persons in possession thereof. 3. Easements, claims of easement or encumbrances which are not shown by the public records. 4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by public records. 5. Unpatented mining claims; reservations or exceptions in patents or in Acts authorizing the issuance thereof; water rights, clams or title to water. 6. Any lien, or right to a lien, for services, labor or material theretofore or hereafter furnished, imposed by law and not shown by the public records. 10. AMERICAN LAND TITLE ASSOCIATION RESIDENTIAL TITLE INSURANCE POLICY - 1987 EXCLUSIONS In addition to the Exceptions in Schedule B, you are not insured against loss, costs, attorneys' fees and expenses resulting from: First American Title Insurance Company Order Number: NCS-164563-SC Page Number: 13 EMIBIT B 1. Governmental police power, and the existence or violation of any law or government regulation. This includes building and zoning ordinances and also laws and regulations concerning: * land use * land division * improvements on the land * environmental protection This exclusion does not apply to violations or the enforcement of these matters which appear in the public records at Policy Date. This exclusion does not limit the zoning coverage described in items 12 and 13 of Covered Title Risks. 2. The right to take the land by condemning it, unless: * a notice of exercising the right appears in the public records on the Policy Date * the taking happened prior to the Policy Date and is binding on you if you bought the land without knowing of the taking. 3. Title Risks: * that are created, allowed, or agreed to by you * that are known to you, but not to us, on the Policy Date - unless they appeared in the public records * that result in no loss to you * that first affect your title after the Policy Date - this does not limit the labor and material lien coverage in Item 8 of Covered Title Risks 4. Failure to pay value for your title. 5. Lack of a right: * to any land outside the area specifically described and referred to in Item 3 of Schedule A, or * in streets, alleys, or waterways that touch your land This exclusion does not limit the access coverage in Item 5 of Covered Title Risks. 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 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. AMERICAN LAND TITLE ASSOCIATION LOAN POLICY - 1992 WITH A.L.T.A. ENDORSEMENT FORM 1 COVERAGE WITH EAGLE PROTECTION ADDED EXCLUSIONS FROM COVERAGE First American Title Insurance Company Order Number: NCS-164563-SC Page Number: 14 E,v.HIBIT P 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. This exclusion does not limit the coverage provided under insuring provisions 14, 15, 16 and 24 of this 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. This exclusion does not limit the coverage provided under insuring provisions 14, 15, 16 and 24 of this 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 (this paragraph (d) does not limit the coverage provided under insuring provisions 7, 8 16, 17, 19, 20, 21, 23, 24 and 25); 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 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: (a) usury, except as provided under insuring provision 10 of this policy; or (b) any consumer credit protection or truth in lending law. 6. Taxes or assessments of any taxing or assessment authority which become a lien on the Land subsequent to Date of Policy. 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: (a) the transaction creating the interest of the insured mortgagee being deemed a fraudulent conveyance or fraudulent transfer; or (b) the subordination of the interest of the insured mortgagee as a result of the application of the doctrine of equitable subordination; or (c) the transaction creating the interest of the insured mortgagee being deemed a preferential transfer except where the preferential transfer results from the failure: (i) to timely record the instrument of transfer; or (ii) of such recordation to impart notice to a purchaser for value or a judgment or lien creditor. 8. 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 limit the coverage provided under insuring provision 7. 9. Lack of priority of the lien of the Insured Mortgage as to each and every advance made after Date of Policy, and all interest charged thereon, over liens, encumbrances and other matters affecting title, the existence of which are Known to the Insured at: (a) The time of the advance; or (b) The time a modification is made to the terms of the Insured Mortgage which changes the rate of interest charged, if the rate of interest is greater as a result of the modification than it would have been before the modification. This exclusion does not limit the coverage provided under insuring provision 7. 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: Environmental protection liens provided for by the following existing statutes, which liens will have priority over the lien of the Insured Mortgage when they arise: NONE. 13. AMERICAN LAND TITLE ASSOCIATION LOAN POLICY - 1992 WITH EAGLE PROTECTION ADDED WITH REGIONAL EXCEPTIONS When the American Land Title Association loan policy with EAGLE Protection Added is used as a Standard Coverage Policy and not as an Extended Coverage Policy the exclusions set forth in paragraph 12 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: First American Title Insurance Company Order Number: NCS-164563-SC Page Number: 15 EXHIBIT B 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. Part Two: 1. Environmental protection liens provided for by the following existing statutes, which liens will have priority over the lien of the Insured Mortgage when they arise: NONE First American Title Insurance Company