COMPLIANCE INFO_COMPLIANCE INFO 1983-2007

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Form No. 12(6/6/92) Order Number: 8701- 2930875 CLTA Lot Book Guarantee Page Number: 4 SCHEDULE OF EXCLUSIONS FROM COVERAGE OF THIS GUARANTEE 1. Except to the extent that spedfic assurance are provided in Schedule A of this Guarantee,the Company assumes no liability for loss or damage by reason of the following: (a) Defects,liens,encumbrances,adverse claims or other matters against the title,whether or not shown by the public records. (b) (1) Taxes or assessments of any taxing authority that levies taxes or assessments on real property;or,(2)Proceedings by a public agency which may result in taxes or assessments,or notices of such proceedings,whether or not the matters excluded under(1)or(2)are shown by the records of the taxing authority or by the public records. (c) (1) Unpatented mining daims;(2)reservations or exceptions in patents or in Acts authorizing the issuance thereof;(3)water rights,claims or title to water,whether or not the matters excluded under(1),(2)or(3)are shown by the public records. 2. Notwithstanding any specific assurances which are provided in Schedule A of this Guarantee,the Company assumes no liability for loss or damage by reason of the following: (a) Defects,liens,encumbrances,adverse claims or other matters affecting the title to any property beyond the lines of the land expressly described in the description set forth in Schedule(A),(C)or in Part 2 of this Guarantee,or title to streets,roads,avenues,lanes,ways or waterways to which such land abuts,or the right to maintain therein vaults,tunnels,ramps,or any structure or improvements;or any rights or easements therein,unless such property,rights or easements are expressly and specifically set forth in said description. (b) Defects,liens,encumbrances,adverse claims or other matters,whether or not shown by the public records;(1)which are created,suffered, assumed or agreed to by one or more of the Assureds;(2)which result in no loss to the Assured;or(3)which do not result in the invalidity or potential invalidity of any judicial or non-judicial proceeding which is within the scope and purpose of the assurances provided. (c) The identity of any party shown or referred to in Schedule A. (d) The validity,legal effect or priority of any matter shown or referred to in this Guarantee. GUARANTEE CONDITIONS AND STIPULATIONS 1. Definition of Terms. The following terms when used in the Guarantee mean: (a)the"Assured":the party or parties named as the Assured in this Guarantee,or on a supplemental writing executed by the Company. (b)"land":the land described or referred to in Schedule(A)(C)or in Part 2,and improvements affixed thereto which by law constitute real property. The term"land"does not indude any property beyond the lines of the area described or referred to in Schedule(A)(C)or in Part 2,nor any right,title, interest,estate or easement in abutting streets,roads,avenues,alleys,lanes,ways or waterways. (c)"mortgage": mortgage,deed of trust,trust deed,or other security instrument. (d)"public records":records established under state statutes at Date of Guarantee for the purpose of imparting constructive notice of matters relating to real property to purchasers for value and without knowledge. (e)"date":the effective date. 2. Notice of Claim to be Given by Assured Claimant. An Assured shall notify the Company promptly in writing in case knowledge shall come to an Assured hereunder of any claim of btle or interest which is adverse to the title to the estate or interest,as stated herein,and which might cause loss or damage for which the Company may be liable by virtue of this Guarantee. If prompt notice shall not be given to the Company,then all liability of the Company shall terminate with regard to the manner or matters for which prompt notice is required;provided,however,that failure to notify the Company shall in no case prejudice the rights of any Assured under this Guarantee unless the Company shall be prejudiced by the failure and then only to the extent of the prejudice. 3. No Duty to Defend or Prosecute. The Company shall have no duty to defend or prosecute any action or proceeding to which the Assured is a party,notwithstanding the nature of any allegation in such action or proceeding. 4. Company's Option to Defend or Prosecute Actions;Duty of Assured Claimant to Cooperate. Even though the Company has no duty to defend or prosecute as set forth in Paragraph 3 above: (a)The Company shall have the right,at its sole option and cost,to institute and prosecute any action or proceeding,interpose a defense,as limited in (b),or to do any other act which in its opinion may be necessary or desirable to establish the title to the estate or interest as stated herein,or to establish the lien rights of the Assured,or to prevent or reduce loss or damage to the Assured. The Company may take any appropriate action under the terms of this Guarantee,whether or not it shall be liable hereunder,and shall not thereby concede liability or waive any provision of this Guarantee. If the Company shall exercise its rights under this paragraph,it shall do so diligently. (b)If the Company elects to exercise its options as stated in Paragraph 4(a)the Company shall have the right to select counsel of its choice(subject to the right of such Assured to object for reasonable cause)to represent the Assured and shall not be liable for and will not pay the fees of any other counsel,nor will the Company pay any fees,costs or expenses incurred by an Assured in the defense of those causes of action which allege matters not covered by this Guarantee. (c)Whenever the Company shall have brought an action or interposed a defense as permitted by the provisions of this Guarantee,the Company may pursue any litigation to final determination by a court of competent jurisdiction and expressly reserves the right,in its sole discretion,to appeal from an adverse judgment or order. First American TI-Ne Company