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EFE' SCHEDULE OF EXCLUSIONS FROM COVERAGE OF THIS GUARANTEE
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<br />I. Except to the extent that specific assurances are provided in Schedule A of this Guarantee, the Company assumes no liability for loss or damage by
<br />reason of the following:
<br />(a) Defects, liens, encumbrances, adverse claims or other matters against the title, whether or not shown by the public records.
<br />(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
<br />result in taxes of assessments, or notices of such proceedings, whether or not the matters excluded tinder (1) or (2) are shown by the records of the taxing
<br />authority 'or by the public records.
<br />(c) (1) Unpatented mining claims; (2) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (3) water rights, claims or title to
<br />" water, whether or not the matters excluded under (1), (2) or (3) are shown by the public records.
<br />2. Notwithstanding any specific assurances which are provided in Schedule A of this Guarantee, the Company assumes no liability for loss or damage by
<br />reason of the following:
<br />(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
<br />description set forth in Schedule (A) of this Guarantee, or title to streets, roads, avenues, lanes, ways or waterways to which such land abuts, or the right to
<br />maintain therein vaults, tunnels, ramps or any structure or improvements; or any rights or easements therein, unless such property, rights or easements are,
<br />expressly and specifically set forth in said description.
<br />(b) Defects, liens, encumbrances, adverse claims or other matters; whether or not shown by the public records; (1) which are created, suffered; assumed or
<br />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
<br />judicial oi, non judicial proceeding which is within the scope and purpose of the assurances provided.
<br />(c) The identity of any party shown or referred to in Schedule A.
<br />(d) The validity, legal effect or priority of any matter shown or referred to in this Guarantee.
<br />GUARANTEE CONDITIONS AND STIPULATIONS
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<br />1. Definition of Terms.
<br />The following terms when used in the Guarantee mean:
<br />(a) the "Assured": the parry or parties named as the Assured
<br />in this Guarantee, or on a supplemental writing executed by the
<br />Company. I
<br />(b) "land' the land described or referred to in Schedule A
<br />and improvements affixed thereto which by law constitute real
<br />property_ The term "land" does not include any property beyond
<br />the lines of the area described or referred to in Schedule A, nor
<br />any right, title, interest, estate or easement in abutting streets,
<br />roads, avenues, allevs, lanes, ways or waterways_
<br />(c) "mortgage mortgage, deed of trust. trust deed orother
<br />security instrument
<br />i (d) "publicrecords":records established understate statutes
<br />'Lat Date of Guarantee for the purpose of imparting constructive
<br />..,, otice of matters relating to real property to purchasers for value
<br />and without knowledge.
<br />(e) "date": the effective date.
<br />2. Notice of Claim to be Given by Assured Claimant.
<br />An Assured shall notify the Company promptly in writingin
<br />case knowledge shall come to an Assured hereunder cf any claim
<br />of title or interest which is adverse to the title to the estate or
<br />interest, as slated herein, and which might cause loss or damage
<br />forwhich the Company may be liable byvittue of this Guarantee.
<br />If prompt notice shall not be given to the Company, then all
<br />liability of the Company shall terminate with regard to the matter
<br />or matters for which prompt notice is required; provided,
<br />.however, that failure to notify the Company shall in no case
<br />prejudice the rights of any Assured under this Guarantee unless
<br />the Company shall be prejudiced by the failure and then only to
<br />the extent of the prejudice.
<br />3. No Duty to Defend or Prosecute
<br />The Company shall have no duty to defend or prosecute any
<br />action or proceeding to which the Assured is a party,
<br />notwithstanding the nature of any allegation in such action or
<br />proceeding i
<br />4. Company's Option to Defend or Prosecute Actions;
<br />Duty of Assured Claimant to Cooperate.
<br />Even though the Company has no duty to defend or
<br />prosecute asset forth in Paragraph 3 above:
<br />(a) The Company shall have the right, at its sole option and
<br />cast, to institute and prosecute any action or proceeding interpose
<br />a defense, as limited in (b), or to do any other act which in its
<br />opinion may be necessary or desirable to establish the title to the
<br />estate or interest as stated herein, or to establish the lien rights of
<br />the Assured, or to prevent or reduce loss or damage to the
<br />Assured. The Company may take any appropriate action under
<br />the terms of this Guarantee, whether or not it shall be liable
<br />hereunder, and shall not thereby concede liability or waive any
<br />provision of this Guarantee. If the Company shall exercise its
<br />rights underthis paragraph, it shall do m diligently.
<br />(b) Ifthe Company elects to exercise its options as stated in
<br />G
<br />Paragraph 4(e) the Company shall have the right to select counsel
<br />of its choice (subject to the right of such Assured to object for
<br />reasonable cause) to represent the Assured and shall not be liable
<br />for and will not pay the fees of any other counsel, nor will the
<br />Company pay any fees, costs or expenses incurred by an Assured
<br />in the defense of those causes of action which allege matters not
<br />covered by this Guarantee_
<br />(c) whenever the Company shall have brought an action or
<br />interposed a defense as permitted by the provisions of this
<br />Guarantee, the Company may pursue any litigation to final
<br />determination by a court of competent jurisdiction and expressly
<br />reserves the right, in its sole discretion, to appeal from an adverse:
<br />judgment or order.
<br />(d) in all cases where this Guarantee permits the Companyto
<br />prosecute or provide for the defense of any action or proceeding,
<br />an Assured shall secure to the Company the right to so prosecute
<br />or provide for the defense of any action or proceeding, and all
<br />appeals therein, and permit the Company to use, at its option, the
<br />name of such .Assured for this purpose. Whenever requested by
<br />the Company, an Assured, at the Company's expense, shall give
<br />the Company all reasonable aid in any action or proceeding,
<br />securing evidence, obtaining witnesses, prosecuting or defending
<br />the action or lawful act which in the opinion of the Companymay
<br />be necessary or desirable to establish the title to the estate or
<br />interest as stated herein, or to establish the lien rights of the
<br />Assured_ If the Company is prejudiced by the failure of the
<br />Assured to famish the required cooperation, the Company's
<br />obligations to the Assured under the Guarantee shall terminate.
<br />5. ProofofLoss orDamage.
<br />In addition to and atter the notices required under Section 2
<br />of these Conditions and Stipulations have been provided to the
<br />Company, a proof of loss or damage signed and swom to by the
<br />Assured shall be furnished to the Company within ninety (90)
<br />days after the Assured shall ascertain the facts giving rise to the
<br />loss or damage. no proof of loss or damage shall describe the
<br />matters covered by this Guarantee which constitute the basis of
<br />loss or damage and shall state, to the extent possible, the basis of
<br />calculating the amount cf the loss or damage. If the Company is
<br />prejudiced by the failure of the Assured to provide the required
<br />proof of loss or damage, the Companys obligation to such assured
<br />under the Guarantee shall terminate. In addition theAsstued may
<br />reasonably be required to submit to examination under oath by
<br />any authorized representative of the Company and shall produce
<br />for examination, inspection and copying, at such reasonahletimes
<br />and places as may be designated by any authorized representative
<br />of the Company, all records, hooks, ledgers, checks,
<br />correspondence and memoranda, whether bearing a date before or
<br />after Date of Guarantee, which reasonably pertain to the loss or
<br />damage- Further, if requested by any authorized representative of
<br />the Company, the Assured shall grant its permission, in writing,
<br />for any authorized representative of the Company to examine,
<br />inspect and copy all records, hooks, ledgers, checks,
<br />correspondence and memoranda in the custody or control of a
<br />third patty, which reasonably pertain to the loss or damage. All
<br />information designated as confidential by the Assuredprocidedto
<br />the Company pursuant to this Section shall not be disclosed to
<br />others unless, in the reasonable judgment of the Company, it is
<br />necessary in the administration of the claim. Failure of the
<br />Assured to submit for examination under oath, produce other
<br />reasonably requested information or grant permission to secure
<br />reasenablynecessary information from third parties as requiredin
<br />the above paragraph, unless prohibited by law or governmental
<br />regulation, shall terminate any liability of the Company taster this
<br />Guarantee to the Assured for that claim.
<br />6. Options to Pay or Otherwise Settle Claims:
<br />Termination of Liability.
<br />In case of a claim under this Guarantee, the Company shall
<br />have the following additional options,
<br />(a) To Pay or Tender Payment of the Amount of Liability or
<br />to Purchase the Indebtedness-
<br />. The Company shall have the option to pay or settle cr
<br />compromise for or in the name of thc Assured any claim which
<br />could result in loss to the Assured within the coverage of this
<br />Guarantee, or to pay the full amount of this Guarantee or, if this
<br />Guarantee is issued for the benefit of a holder of a mortgage or a
<br />lienholder, the Comparry shall have the option to purchase the
<br />indebtedness secured by said mortgage or said lien for the amount
<br />owing thereon, together with any costs, reasonable attomeys' fees
<br />and expenses incurred by the Assured claimant which were
<br />authorized by the Company up to the time of purchase,
<br />Such purchase, payment or tender of payment of the full
<br />amount of the Guarantee shall terminate all liability of the
<br />Company hereunder. In the event after notice of claim has been
<br />given to the Company by the Assured the Company offers to
<br />purchase said indebtedness, the owner of such indebtedness shall
<br />transfer and assign said indebtedness, together with any collateral
<br />security, to the Company upon payment ofthe purchase price.
<br />Upon the exercise by the Company of the option provided
<br />for in Paragraph (a) the Company's obligation to the Assured
<br />under this Guarantee for the claimed loss or damage, other than to
<br />make the payment required in that paragraph, shall terminate,
<br />including any obligation to continue the defense or prosecationof
<br />any litigation for which the Company has exercised its options
<br />under Paragraph 4, and the Guarantee shall be surrendered to the
<br />Company for cancellation.
<br />(b) To Pay or Otherwise Settle With Parties Other Thanthe
<br />Assured or With the Assured Claimant.
<br />To pay or otherwise settle with other parties for or in the
<br />name of an Assured claimant any claim assured against underthis
<br />Guarantee, together with any costs, attorneys' fees and expenses
<br />incurred by the Assured claimant which were authorized by the
<br />Company up to the time of payment and which the Company is
<br />obligated to pay
<br />Upon the exercise by the Company of the option provided
<br />for in Paragraph (b) the Company's obligation to the Assured
<br />under this Guarantee for the claimed loss or damage, other than to
<br />make the payment required in that paragraph, shall terminate,
<br />including any obligation to continue the defense or prosecutionof
<br />any litigation for which the Company has exercised its options
<br />under Paragraph 4.
<br />7. Determination and Extent of Liability.
<br />This Guarantee is a contract of indemnity against actual
<br />monetary loss or damage sustained or incurred by the Assured
<br />claimant who has suffered loss or damage by reason of reliance
<br />upon the assurances set forth in this Guarantee and only to the
<br />Chain of Title Guarantee
<br />CL'1'AGuarantee Form No. 6 (12115!95)
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