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Order Number: 1004-5251074 <br /> Page Number: 3 <br /> 7. An option in favor of Fern Island, LLC, a California Limited Liability Company as contained in or <br /> disclosed by a document recorded July 28, 2004 as Instrument No. 2004-167164 of Official <br /> Records. <br /> 8. An unrecorded lease dated April 20, 2012, executed by James E. Sanchez and Patricia L. <br /> Sanchez, as husband and wife as lessor and Valley Organics, Inc., a California corporation as <br /> lessee, as disclosed by a Memorandum of Ground Lease recorded May 03, 2012 as Instrument <br /> No. 2012-055556 of Official Records. <br /> Defects, liens, encumbrances or other matters affecting the leasehold estate, whether or not <br /> shown by the public records. <br /> 9. Any defects, liens, encumbrances or other matters which name parties with the same or similar <br /> names as James E. Sanchez(Eleven + Matters) and Patricia L. Sanchez (Eleven + Matters). The <br /> name search necessary to ascertain the existence of such matters has not been completed. In <br /> order to complete this preliminary report or commitment,we will require a statement of <br /> information. <br /> 10. Any claim that the Title is subject to a trust or lien created under The Perishable Agricultural <br /> Commodities Act, 1930 (7 U.S.C. §§499a, et seq.) or the Packers and Stockyards Act(7 U.S.C. <br /> §§181 et seq.) or under similar state laws. <br /> 11. Rights of the public in and to that portion of the land lying within any Road, Street, Alley or <br /> Highway. <br /> 12. Water rights, claims or title to water,whether or not shown by the public records. <br /> 13. Rights of parties in possession. <br /> FirstAmerican Title <br /> Page 3 of 16 <br />