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PRELIMINARY REPORT YOUR ESCROW OFFICER IS: SUE ARMSTRONG-MOORE 345 N. E1 Dorado St. , Stockton, CA 95202 (209) 948-2732 Our No. : 0271276 BUYER(S) : FALCON ENERGY, A CALIFORNIA GENERAL PARTNERSHIP ASSESSORS PROPERTY ADDRESS 6600 S. Austin Road Stockton, CA In response to the above referenced application for a Policy of Title Insurance, TICOR TITLE INSURANCE COMPANY OF CALIFORNIA 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 on the attached cover. Copies of the Policy forms should be read. They are available from the office which issued this report. This report (and any supplements or amendments thereto) 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. Dated as of October 2 , 1987 at 7 : 30 a.m. TITLE OFFICER: GEORGE DENNIS The form of Policy of Title Insurance contemplated by this Report is: ALTA Residential Title Insurance Policy - 1979 ALTA Loan Policy - 1970 with ALTA Endorsement Form 1 Coverage (Amended 10-17-70) X_ CLTA Standard Coverage Policy - 1973 (Amended 12-6-85 and 2-20-86) ALTA Owner' s Policy Form B - 1970 (Amended 10-17-70) The estate or interest in the land hereinafter described or referred to covered by this Report is a fee. Title to said estate or interest at the date hereof is vested in: NILSSON FARMS, a partnership composed of CLARENCE ARTHUR NILSSON and JAMES ROBERT NILSSON At the date hereof exceptions to coverage in addition to the printed Exceptions and Exclusions contained in said Policy Form would be as follows: