COMMITMENT FOR TITLE INSURANCE Issued by Commonwealth … · COMMITMENT FOR TITLE INSURANCE Issued...

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COMMITMENT FOR TITLE INSURANCE

Issued by Commonwealth Land Title Insurance Company

COMMONWEALTH LAND TITLE INSURANCE COMPANY , a Nebraska corporation (“Company”), for a valuable consideration, commits to issue its policy or policies of title insurance, as identified in Schedule A, in favor of the Proposed Insured named in Schedule A, as owner or mortgagee of the estate or interest in the land described or referred to in Schedule A, upon payment of the premiums and charges and compliance with the Requirements; all subject to the provisions of Schedules A and B and to the Conditions of this Commitment. This Commitment shall be effective only when the identity of the Proposed Insured and the amount of the policy or policies committed for have been inserted in Schedule A by the Company. All liability and obligation under this Commitment shall cease and terminate 120 days after the Effective Date or when the policy or policies committed for shall issue, whichever first occurs, provided that the failure to issue the policy or policies is not the fault of the Company. The Company will provide a sample of the policy form upon request. IN WITNESS WHEREOF, the Company has caused this Commitment to be signed with the facsimile signatures of its President and Secretary and sealed as required by its By-Laws.

Lawyers Title, A Division of Commonwealth Commonwealth Land Title Insurance Company

By:

President

Land Title Insurance Company

By:

Countersigned

ATTEST Secretary

CONDITIONS 1. The term mortgage, when used herein, shall include deed of trust, trust deed, or other security instrument.

2. If the proposed Insured has or acquired actual knowledge of any defect, lien, encumbrance, adverse claim or other matter affecting the estate or interest or mortgage thereon covered by this Commitment other than those shown in Schedule B hereof, and shall fail to disclose such knowledge to the Company in writing, the Company shall be relieved from liability for any loss or damage resulting from any act of reliance hereon to the extent the Company is prejudiced by failure to so disclose such knowledge. If the proposed Insured shall disclose such knowledge to the Company, or if the Company otherwise acquires actual knowledge of any such defect, lien, encumbrance, adverse claim or other matter, the Company at its option may amend Schedule B of this Commitment accordingly, but such amendment shall not relieve the Company from liability previously incurred pursuant to paragraph 3 of these Conditions and Stipulations.

3. Liability of the Company under this Commitment shall be only to the named proposed Insured and such parties included under the definition of Insured in the form of policy or policies committed for and only for actual loss incurred in reliance hereon in undertaking in good faith (a) to comply with the requirements hereof, or (b) to eliminate exceptions shown in Schedule B, or (c) to acquire or create the estate or interest or mortgage thereon covered by this Commitment. In no event shall such liability exceed the amount stated in Schedule A for the policy or policies committed for and such liability is subject to the insuring provisions and Conditions and Stipulations and the Exclusions from Coverage of the form of policy or policies committed for in favor of the proposed Insured which are hereby incorporated by reference and are made a part of this Commitment except as expressly modified herein.

4. This Commitment is a contract to issue one or more title insurance policies and is not an abstract of title or a report of the condition of title. Any action or actions or rights of action that the proposed Insured may have or may bring against the Company arising out of the status of the title to the estate or interest or the status of the mortgage thereon covered by this Commitment must be based on and are subject to the provisions of this Commitment.

5. The policy to be issued may contain an arbitration clause. When the Amount of Insurance is less than that set forth in the arbitration clause, all arbitrable matters shall be arbitrated at the option of either the Company or the Insured as the exclusive remedy of the parties. You may review a copy of the arbitration rules at< http://www.alta.org/>.

ORIGINAL ALTA Commitment – 6/17/06 - AZ Form 1004-361

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DISCLOSURE NOTICES

Good Funds Law Arizona Revised Statutes Section 6-843 regulates the disbursement of escrow funds by an escrow agent. The law requires that funds be deposited in the escrow agent’s escrow account and available for withdrawal prior to disbursement. Funds deposited with the Company by wire transfer may be

disbursed upon receipt. Funds deposited with the Company in the form of cashier’s checks, certified checks or teller’s checks, or checks which are made by an affiliate of a state or federally regulated depository institution when the check is drawn on that institution, may be disbursed the same day as deposited. If funds are deposited with the Company by other methods, recording and/or disbursement may be delayed.

PURCHASER DWELLING ACTIONS NOTICE Pursuant to Arizona Revised Statutes Section 12-1363.N, notice is hereby provided to the purchaser of a dwelling of the provisions of Arizona Revised Statutes Sections 12-1361, 1362 and 1363. These statutory sections set forth the requirements to be met by a purchaser prior to bringing an action against the seller of a dwelling arising out of or related to the design, construction, condition or sale of the dwelling. “Dwelling” means a single or multifamily unit designed for residential use and common areas and improvements owned or maintained by an association or its members. “Seller” means any

person, firm, partnership, corporation, association or other organization engaged in the business of designing, constructing or selling dwellings. The complete statutory sections can be viewed on the Arizona State Legislature’s web site: www.azleg.state.az.us/ars/ars.htm.

NOTICE:

Pursuant to Arizona Revised Statutes 11-480, effective January 1, 1991, the County Recorder may not accept documents for recording that do not comply with the following:

a Print must be ten-point type (pica) or larger.

b Margins of at least one-half inch along the left and right sides one-half inch across the bottom and at least two inches on top for recording and return address information.

c Each instrument shall be no larger than 8 ½ inches in width and 14 inches in length.

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Effective Date: 5/1/2008

Fidelity National Financial, Inc. Privacy Statement

Fidelity National Financial, Inc. and its subsidiaries ("FNF") respect the privacy and security of your non-public personal information ("Personal Information") and protecting your Personal Information is one of our top priorities. This Privacy Statement explains FNF's privacy practices, including how we use the Personal Information we receive from you and from other specified sources, and to whom it may be disclosed. FNF follows the privacy practices described in this Privacy Statement and, depending on the business performed, FNF companies may share information as described herein. Personal Information Collected We may collect Personal Information about you from the following sources: � Information we receive from you on applications or other forms, such as your name, address, social security

number, tax identification number, asset information, and income information; � Information we receive from you through our Internet websites, such as your name, address, email address,

Internet Protocol address, the website links you used to get to our websites, and your activity while using or reviewing our websites;

� Information about your transactions with or services performed by us, our affiliates, or others, such as information concerning your policy, premiums, payment history, information about your home or other real property, information from lenders and other third parties involved in such transaction, account balances, and credit card information; and

� Information we receive from consumer or other reporting agencies and publicly recorded documents. Disclosure of Personal Information We may provide your Personal Information (excluding information we receive from consumer or other credit reporting agencies) to various individuals and companies, as permitted by law, without obtaining your prior authorization. Such laws do not allow consumers to restrict these disclosures. Disclosures may include, without limitation, the following: � To insurance agents, brokers, representatives, support organizations, or others to provide you with services you

have requested, and to enable us to detect or prevent criminal activity, fraud, material misrepresentation, or nondisclosure in connection with an insurance transaction;

� To third-party contractors or service providers for the purpose of determining your eligibility for an insurance benefit or payment and/or providing you with services you have requested;

� To an insurance regulatory authority, or a law enforcement or other governmental authority, in a civil action, in connection with a subpoena or a governmental investigation;

� To companies that perform marketing services on our behalf or to other financial institutions with which we have joint marketing agreements and/or

� To lenders, lien holders, judgment creditors, or other parties claiming an encumbrance or an interest in title whose claim or interest must be determined, settled, paid or released prior to a title or escrow closing.

We may also disclose your Personal Information to others when we believe, in good faith, that such disclosure is reasonably necessary to comply with the law or to protect the safety of our customers, employees, or property and/or to comply with a judicial proceeding, court order or legal process.

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(privacyform) Effective Date: 5/1/2008

Disclosure to Affiliated Companies - We are permitted by law to share your name, address and facts about your transaction with other FNF companies, such as insurance companies, agents, and other real estate service providers to provide you with services you have requested, for marketing or product development research, or to market products or services to you. We do not, however, disclose information we collect from consumer or credit reporting agencies with our affiliates or others without your consent, in conformity with applicable law, unless such disclosure is otherwise permitted by law. Disclosure to Nonaffiliated Third Parties - We do not disclose Personal Information about our customers or former customers to nonaffiliated third parties, except as outlined herein or as otherwise permitted by law. Confidentiality and Security of Personal Information We restrict access to Personal Information about you to those employees who need to know that information to provide products or services to you. We maintain physical, electronic, and procedural safeguards that comply with federal regulations to guard Personal Information. Access To Personal Information/ Requests for Correction, Amendment, or Deletion of Personal Information As required by applicable law, we will afford you the right to access your Personal Information, under certain circumstances to find out to whom your Personal Information has been disclosed, and request correction or deletion of your Personal Information. However, FNF's current policy is to maintain customers' Personal Information for no less than your state's required record retention requirements for the purpose of handling future coverage claims. For your protection, all requests made under this section must be in writing and must include your notarized signature to establish your identity. Where permitted by law, we may charge a reasonable fee to cover the costs incurred in responding to such requests. Please send requests to:

Chief Privacy Officer Fidelity National Financial, Inc.

601 Riverside Avenue Jacksonville, FL 32204

Title Officer: Quinn J. Burdick/CT

Typist: qb1 Amended: May 23, 2011 No. 2 of 35

Escrow Officer: Not Applicable Lawyers Service Center 1500 E Woolford Road Suite 102 Show Low, AZ 85901

COMMITMENT FOR TITLE INSURANCE Issued by,

Commonwealth Land Title Insurance Company

SCHEDULE A

1. Effective Date: May 3, 2011 at 7:30 a.m. File No.: 01723674

2. Policy or Policies to be issued: ALTA 2006 Std Owners Policy

Proposed Insured: Venture 40, LLC

Liability: $1,500,000.00

Policy or Policies to be issued: ALTA 2006 Lenders Policy

Proposed Insured: To Come

Liability: $TO COME

Policy or Policies to be issued: None

Proposed Insured:

Liability: $

3. The estate or interest in the land described or referred to in the Commitment and covered herein is a: a fee as to Parcel No.(s) 1, 2, 4, 5, 6, 7, 8, 9 and 10 and an easement as to Parcel No.(s) 3.

4. Title to the said estate or interest in said land is at the Effective Date hereof vested in:

Towne Bank of Arizona

5. The land referred to in this Commitment is situated in the County of Navajo, State of ARIZONA, and is described as follows:

As fully set forth on “Exhibit A” attached hereto and by this reference

incorporated herein

File No.: 01723674

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EXHIBIT “A”

PARCEL NO. 1: That portion of Section 10, Township 11 North, Range 22 East, of the Gila and Salt River

Base and Meridian, Navajo County, Arizona, described as follows: BEGINNING at the Southeast corner of the West half of the Northwest quarter of said Section 10;

THENCE North 89 degrees 04 minutes 36 seconds East, (North 89 degrees 04 minutes 52 seconds East record) a distance of 252.68 feet to the POINT OF BEGINNING;

THENCE North 89 degrees 04 minutes 36 seconds East (North 89 degrees 04 minutes 52 seconds East record), a distance of 1007.08 feet to the center of said Section 10;

THENCE North 89 degrees 03 minutes 59 seconds East (North 89 degrees 04 minutes 52 seconds East record), a distance of 1319.71 feet to the Southeast corner of the West half of the Northeast quarter;

THENCE North 75 degrees 00 minutes 00 seconds East, a distance of 96.40 feet; THENCE South 35 degrees 10 minutes 22 seconds West (South 35 degrees 30 minutes 00

seconds West record), a distance of 412.06 feet (408 feet record); THENCE South 86 degrees 26 minutes 39 seconds West (South 86 degrees 25 minutes 00 seconds West record) a distance of 305.83 feet;

THENCE South 35 degrees 33 minutes 12 seconds West (South 35 degrees 20 minutes 00 seconds West record) a distance of 275.13 feet (275 feet record);

THENCE South 58 degrees 18 minutes 36 seconds West (South 58 degrees 30 minutes 00 seconds West record) a distance of 838.88 feet (836.00 record);

THENCE North 70 degrees 56 minutes 25 seconds West (North 70 degrees 40 minutes 00 seconds West record) a distance of 235.91 feet (236.00 feet record); THENCE North 18 degrees 44 minutes 02 seconds West (North 18 degrees 35 minutes 00

seconds West record) a distance of 363.54 feet (365.00 feet record); THENCE North 67 degrees 31 minutes 17 seconds West (North 67 degrees 14 minutes 59

seconds West record) a distance of 274.81 feet (275 feet record); THENCE South 74 degrees 45 minutes 43 seconds West (South 75 degrees 00 minutes 00 seconds West record) a distance of 347.06 feet (346.24 feet record) to a pint in the East

line of right of way line of The White Mountain Apache Railroad; THENCE South 2 degrees 16 minutes 30 seconds West, along said right of way line, a distance of 50.80 feet;

THENCE South 87 degrees 54 minutes 57 seconds West (South 86 degrees 39 minutes 19 seconds West record) a distance of 106.02 feet;

File No.: 01723674

EXHIBIT “A”

(Continued)

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THENCE North 2 degrees 22 minutes 43 seconds East, to the POINT OF BEGINNING.

PARCEL NO. 2:

That portion of Section 10, Township 11 North, Range 22 East, of the Gila and Salt River Base and Meridian, Navajo County, Arizona, described as follows: BEGINNING at the Southeast corner of the West half of the Northwest quarter of said

Section 10; THENCE North 89 degrees 04 minutes 36 seconds East (North 89 degrees 04 minutes 52

seconds East record) a distance of 252.68 feet; THENCE South 02 degrees 16 minutes 30 seconds West, a distance of 577.64 feet;

THENCE South 87 degrees 54 minutes 57 seconds West (South 86 degrees 39 minutes 19 seconds West record), 165.13 feet;

THENCE South 06 degrees 36 minutes 40 seconds West (South 05 degrees 23 minutes 43 seconds West record), 418.55 feet; THENCE South 78 degrees 01 minutes 12 seconds East (South 79 degrees 15 minutes 45

seconds East record) 294.61 feet (294.10 feet record), to the Northwest corner of Lot 25, White Mountain Lakes Unit #8, according to Book 9 of Plats, page 30, records of said county;

THENCE along a Westerly line of said White Mountain Lakes #8, being the arc of a curve to the right, through a central angle of 38 degrees 09 minutes 35 seconds (37 degrees 52 minutes 25 seconds record) having a radius of 1054.92 feet, a distance of 702.58 feet

(697.32 feet, record) to a point on the East line of the Southwest quarter of the Southwest quarter of said Section 10; THENCE North 01 degrees 13 minutes 42 seconds East, 348.65 feet to the Northeast corner

of the Southwest quarter of the Southwest quarter of said Section 10; THENCE North 01 degrees 16 minutes 24 seconds East, 1306.42 feet to the POINT OF

BEGINNING. PARCEL NO. 3:

An easement for ingress, egress and utility purposes over the property more particularly described and reserved in that certain deed recorded in Docket 827, at page 912 and as shown on that certain record of survey recorded in Book 32 of Surveys, page 71, Navajo

County, records.

PARCEL NO. 4:

File No.: 01723674

EXHIBIT “A”

(Continued)

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That part of Section 10, Township 11 North, Range 22 East, of the Gila and Salt River Base

and Meridian, Navajo County, Arizona, described as follows: BEGINNING at the Southeast corner of the West half of the Northeast quarter of said Section 10;

THENCE North 00 degrees 05 minutes 42 seconds West (North 00 degrees 06 minutes 57 seconds West, record) along the East line of the West half of the Northeast quarter of said Section 10, a distance of 1,824.26 feet;

THENCE South 53 degrees 46 minutes 05 seconds East (South 53 degrees 45 minutes 00 seconds East, record) 230.36 feet (230.49 feet, record);


THENCE North 88 degrees 40 minutes 42 seconds East (North 88 degrees 45 minutes 00 seconds East, record) 101.97 feet (102.00 feet, record);

THENCE North 52 degrees 13 minutes 55 seconds East (North 52 degrees 15 minutes 00 seconds East, record) 191.94 feet (192.00 feet, record); THENCE North 87 degrees 43 minutes 51 seconds East (North 87 degrees 45 minutes 00

seconds East, record) 139.84 feet (140.00 feet, record); THENCE South 58 degrees 26 minutes 47 seconds East (South 58 degrees 25 minutes 00 seconds East, record) 515.13 feet (515.00 feet, record);



THENCE South 55 degrees 24 minutes 05 seconds East (South 55 degrees 34 minutes 12 seconds East, record) 67.02 feet (67.20 feet, record), to a point on the East line of said Section 10;

THENCE South 00 degrees 03 minutes 28 seconds East (South 00 degrees 03 minutes 44 seconds East, record) along said East line, 415.54 feet (415.56 feet, record);

THENCE North 46 degrees 59 minutes 58 seconds West (North 47 degrees 00 minutes 00 seconds West, record) 476.99 feet (477.04 feet, record); THENCE North 54 degrees 18 minutes 4 seconds West (North 54 degrees 30 minutes 00

seconds West, record) 166.41 feet (166.00 feet, record); THENCE along the arc of a curve to the left having a radius of 200.00 feet, through a central

angle of 117 degrees 39 minutes 48 seconds (118 degrees 00 minutes 00 seconds record) 410.72 feet (411.90 feet record);

File No.: 01723674

EXHIBIT “A”

(Continued)

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THENCE South 07 degrees 51 minutes 44 seconds West (South 07 degrees 30 minutes 00

seconds West, record) 441.64 feet (447.00 feet, record); THENCE South 20 degrees 21 minutes 20 seconds West (South 21 degrees 00 minutes 00 seconds West, record) 191.62 feet (196.00 feet, record);

THENCE South 55 degrees 13 minutes 01 seconds West, (South 55 degrees 15 minutes 00 seconds West, record) 356.67 feet (353.00 feet, record);

THENCE South 75 degrees 00 minutes 00 seconds West 96.40 feet to the POINT OF BEGINNING.

PARCEL NO. 5: A parcel of land situated in the Southeast quarter of Section 10 and the Southwest quarter

of Section 11, Township 11 North, Range 22 East of the Gila and Salt River Base and Meridian, Navajo County, Arizona, and being more particularly described as follows:

COMMENCING at the Southeast corner of said Section 11, a found 5/8 inch pipe with aluminum cap; THENCE North 89 degrees 40 minutes 00 seconds West, along the South line of said Section

11, a distance of 5293.60 feet, to the Southwest corner of said Section 11, a found 1/2 inch rebar with cap; THENCE North 57 degrees 48 minutes 44 seconds West, a distance of 767.81 feet to the

TRUE POINT OF BEGINNING; THENCE North 54 degrees 58 minutes 13 seconds West, a distance of 815.64 feet;

THENCE North 00 degrees 06 minutes 45 seconds West, a distance of 214.64 feet; THENCE North 31 degrees 18 minutes 18 seconds West, a distance of 291.59 feet;

THENCE North 40 degrees 22 minutes 17 seconds West, a distance of 132.73 feet;

THENCE North 07 degrees 45 minutes 08 seconds West, a distance of 47.95 feet; THENCE North 01 degrees 19 minutes 22 seconds East, a distance of 89.27 feet;

THENCE North 51 degrees 09 minutes 48 seconds East, a distance of 77.27 feet; THENCE North 84 degrees 45 minutes 03 seconds East, a distance of 136.80 feet;


THENCE North 25 degrees 42 minutes 37 seconds East, a distance of 24.70 feet;

File No.: 01723674

EXHIBIT “A”

(Continued)

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THENCE South 73 degrees 34 minutes 16 seconds East, a distance of 96.11 feet; THENCE South 16 degrees 32 minutes 55 seconds East, a distance of 120.84 feet;

THENCE South 20 degrees 04 minutes 51 seconds West, a distance of 69.22 feet; THENCE South 42 degrees 22 minutes 02 seconds West, a distance of 182.93 feet;

THENCE South 03 degrees 23 minutes 21 seconds West, a distance of 58.95 feet;

THENCE South 25 degrees 52 minutes 47 seconds East, a distance of 132.77 feet; THENCE North 89 degrees 21 minutes 46 seconds East, a distance of 925.13 feet;

THENCE North 63 degrees 04 minutes 22 seconds East, a distance of 1040.91 feet; THENCE South 53 degrees 35 minutes 39 seconds East, a distance of 181.65 feet;




THENCE South 25 degrees 25 minutes 20 seconds West, a distance of 180.36 feet; THENCE North 85 degrees 10 minutes 30 seconds West, a distance of 260.57 feet;

THENCE South 14 degrees 10 minutes 09 seconds West, a distance of 278.23 feet; THENCE South 31 degrees 43 minutes 06 seconds West, a distance of 95.14 feet to the

TRUE POINT OF BEGINNING. PARCEL NO. 6:

All that part of Sections 10, 11, 14 and 15, Township 11 North, Range 22 East of the Gila and Salt River Base and Meridian, Navajo County, Arizona, described as follows:

BEGINNING at the Southwest corner of said Section 11; THENCE South 89 degrees 40 minutes 00 seconds East, along the South line of said Section

11, a distance of 980.87 feet to the TRUE POINT OF BEGINNING;

File No.: 01723674

EXHIBIT “A”

(Continued)

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THENCE South 89 degrees 40 minutes 00 seconds East, a distance of 672.74 feet;

THENCE North, a distance of 1128.35 feet; THENCE along the arc of a curve, a distance of 326.03 feet, said curve being concave to the Southeast, having a radius of 330.00 feet and a central angle of 27 degrees 41 minutes 35

seconds; THENCE South 56 degrees 36 minutes 24 seconds West, a distance of 303.88 feet;





THENCE North 15 degrees 09 minutes 52 seconds West, a distance of 52.67 feet; THENCE North 75 degrees 11 minutes 12 seconds East, a distance of 159.25 feet;

THENCE along the arc of a curve, a distance of 157.08 feet, said curve being concave to the Southeast, having a radius of 325.00 feet, a central angle of 27 degrees 41 minutes 35 seconds and a chord bearing of North 03 degrees 07 minutes 15 seconds East, to the TRUE

POINT OF BEGINNING. PARCEL NO. 7:

All that part of Section 11, Township 11 North, Range 22 East of the Gila and Salt River Base and Meridian, Navajo County, Arizona, more particularly described as follows:

BEGINNING at the Southwest corner of said Section 11; THENCE South 89 degrees 40 minutes 00 seconds East, along the South line of said Section

11, a distance of 1897.27 feet; THENCE North 00 degrees 20 minutes 00 seconds East, a distance of 3306.84 feet to the TRUE POINT OF BEGINNING;



File No.: 01723674

EXHIBIT “A”

(Continued)

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THENCE North 68 degrees 00 minutes 00 seconds West, a distance of 730.00 feet; THENCE South 84 degrees 30 minutes 00 seconds West, a distance of 175.00 feet;

THENCE North 60 degrees 00 minutes 00 seconds West, a distance of 200.00 feet; THENCE South 64 degrees 00 minutes 00 seconds West, a distance of 60.00 feet;

THENCE South 17 degrees 30 minutes 00 seconds West, a distance of 90.00 feet; THENCE South 27 degrees 30 minutes 00 seconds East, a distance of 140.00 feet;






THENCE North 65 degrees 00 minutes 00 seconds East, a distance of 77.06 feet; THENCE North 16 degrees 43 minutes 41 seconds West, a distance of 771.76 feet;


THENCE along the arc of a curve, a distance of 98.17 feet, said curve being concave to the Northwest, having a radius of 468.35 feet, a central angle of 12 degrees 00 minutes 35 seconds and a chord bearing of North 75 degrees 53 minutes 24 seconds East, a distance of the TRUE POINT OF BEGINNING.

PARCEL NO. 8:

All that part of Section 11, Township 11 North, Range 22 East of the Gila and Salt River Base and Meridian, Navajo County, Arizona, more particularly described as follows:

BEGINNING at the Southwest corner of said Section 11;

File No.: 01723674

EXHIBIT “A”

(Continued)

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THENCE South 89 degrees 40 minutes 00 seconds East, along the South line of said Section 11, a distance of 1897.27 feet;

THENCE North 00 degrees 20 minutes 00 seconds East, a distance of 3306.84 feet to the TRUE POINT OF BEGINNING;

THENCE North 42 degrees 30 minutes 32 seconds East, a distance of 77.06 feet; THENCE along the arc of a curve, a distance of 19.65 feet, said curve being concave to the Northwest, having a radius of 418.35 feet, a central angle of 02 degrees 41 minutes 30

seconds and a chord bearing of North 47 degrees 22 minutes 48 seconds East; THENCE North 46 degrees 01 minutes 23 seconds East, a distance of 60.71 feet;



THENCE along the arc of a curve, a distance of 50.27 feet, said curve being concave to the Southeast, having a radius of 274.26 feet, a central angle of 10 degrees 30 minutes 05 seconds and a chord bearing of North 71 degrees 40 minutes 34 seconds East;

THENCE North 12 degrees 31 minutes 44 seconds East, a distance of 334.62 feet; THENCE North 17 degrees 54 minutes 39 seconds West, a distance of 839.02 feet;


THENCE South 47 degrees 33 minutes 50 seconds West, a distance of 124.66 feet; THENCE North 25 degrees 00 minutes 00 seconds East, a distance of 370.04 feet;



THENCE along the arc of a curve, a distance of 370.74 feet, said curve being concave to the Southwest, having a radius of 2213.77 feet and a central angle of 09 degrees 35 minutes 43 seconds;

THENCE South 35 degrees 18 minutes 11 seconds East, a distance of 798.68 feet; THENCE along the arc of a curve, a distance of 405.27 feet, said curve being concave to the

Southeast, having a radius of 3552.61 feet and a central angle of 06 degrees 32 minutes 10 seconds;

File No.: 01723674

EXHIBIT “A”

(Continued)

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THENCE South 48 degrees 09 minutes 39 seconds West, a distance of 25.00 feet; THENCE along the arc of a curve, a distance of 79.15 feet, said curve being concave to the

Southeast, having a radius of 308.33 feet and a central angle of 14 degrees 42 minutes 27 seconds; THENCE South 33 degrees 27 minutes 12 seconds West, a distance of 105.66 feet;

THENCE along the arc of a curve, a distance of 186.99 feet, said curve being concave to the Northwest, having a radius of 517.91 feet and a central angle of 20 degrees 41 minutes 12

seconds; THENCE South 54 degrees 08 minutes 24 seconds West, a distance of 144.98 feet;

THENCE along the arc of a curve, a distance of 447.15 feet, said curve being concave to the Southeast, having a radius of 600.00 feet and a central angle of 42 degrees 42 minutes 00 seconds;



THENCE along the arc of a curve, a distance of 99.40 feet, said curve being concave to the Southeast, having a radius of 224.26 feet, a central angle of 25 degrees 23 minutes 40

seconds and a chord bearing of South 83 degrees 19 minutes 39 seconds West; THENCE South 12 degrees 31 minutes 44 seconds West, a distance of 673.44 feet;

THENCE North 35 degrees 28 minutes 31 seconds West, a distance of 436.84 feet to the TRUE POINT OF BEGINNING.

PARCEL NO. 9: That part of Section 11, Township 11 North, Range 22 East, of the Gila and Salt River Base

and Meridian, Navajo County, Arizona, described as follows: BEGINNING at the Southwest corner of said Section 11;

THENCE South 89 degrees 40 minutes 00 seconds East along the South line of said Section 11, 2011.50 feet;

THENCE North 00 degrees 20 minutes 00 seconds East, a distance of 3432.93 feet to the TRUE POINT OF BEGINNING;

File No.: 01723674

EXHIBIT “A”

(Continued)

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THENCE South 17 degrees 54 minutes 39 seconds East, a distance of 839.02 feet; THENCE South 12 degrees 31 minutes 4 seconds West, a distance of 334.62 feet;

THENCE along the arc of a curve 50.27 feet, said curve being concave to the Southeast having a radius of 274.26 feet, a central angle of 10 degrees 30 minutes 5 seconds and a chord bearing of South 71 degrees 40 minutes 34 seconds West;


THENCE South 54 degrees 3 seconds 28 minutes West, a distance of 49.41 feet; THENCE South 6 degrees 52 minutes 12 seconds West, a distance of 254.20 feet;

THENCE South 46 degrees 01 minutes 23 seconds West, a distance of 60.71 feet; THENCE along the arc of a curve 19.65 feet, said curve being concave to the Northwest

having a radius of 418.35 feet, a central angle of 2 degrees 41 minutes 30 seconds to the TRUE POINT OF BEGINNING. EXCEPT the following described portion:

BEGINNING at the Southwest corner of said Section 11; THENCE South 89 degrees 40 minutes 00 seconds East along the South line of said Section

11, 2011.50 feet; THENCE North 00 degrees 20 minutes 00 seconds East, a distance of 3432.93 feet to the

TRUE POINT OF BEGINNING;

File No.: 01723674

EXHIBIT “A”

(Continued)

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THENCE South 12 degrees 31 minutes 4 seconds West, a distance of 334.62 feet; THENCE along the arc of a curve 50.27 feet, said curve being concave to the Southeast,

having a radius of 274.26 feet, a central angle of 10 degrees 30 minutes 5 seconds and a chord bearing of South 71 degrees 40 minutes 34 seconds West; THENCE North 45 degrees 00 minutes 00 seconds West, a distance of 170.82 feet;

THENCE South 54 degrees 3 seconds 28 minutes West, a distance of 49.41 feet;


THENCE along the arc of a curve 19.65 feet, said curve being concave to the Northwest having a radius of 418.35 feet, and a central angle of 2 degrees 41 minutes 30 seconds to the TRUE POINT OF BEGINNING.

PARCEL NO. 10:

File No.: 01723674

EXHIBIT “A”

(Continued)

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That part of the Southeast quarter of Section 10 and the Southwest quarter of Section 11, Township 11 North, Range 22 East, of the Gila and Salt River Base and Meridian, Navajo

County, Arizona, more particularly described as follows: COMMENCING at the Southeast corner of said Section 10;

THENCE South 89 degrees 38 minutes 23 seconds West, a distance of 842.11 feet; THENCE North 32 degrees 44 minutes 53 seconds East, 40.83 feet;

THENCE North 8 degrees 7 minutes 48 seconds East, 212.13 feet; THENCE North 39 degrees 28 minutes 21 seconds East, 220.23 feet to the POINT OF

BEGINNING OF THIS DESCRIPTION; THENCE North 54 degrees 58 minutes 13 seconds West, 815.60 feet to a point on a meander line around the White Mountain Lake;

THENCE along said meander line the following 37 courses:

1) North 00 degrees 6 minutes 45 seconds West, 214.64 feet; 2) North 31 degrees 18 minutes 18 seconds West, 291.59 feet; 3) North 40 degrees 22 minutes 17 seconds West, 132.73 feet; 4) North 7 degrees 45 minutes 8 seconds West, 47.95 feet;

5) North 1 degrees 19 minutes 22 seconds East, 89.27 feet; 6) North 51 degrees 9 minutes 48 seconds East, 77.27 feet; 7) North 84 degrees 45 minutes 3 seconds East, 136.80 feet; 8) North 61 degrees 54 minutes 1 seconds East, 101.65 feet;

9) North 38 degrees 29 minutes 11 seconds East, 158.01 feet; 10) North 25 degrees 42 minutes 37 seconds East, 24.70 feet; 11) North 85 degrees 2 minutes 10 seconds East, 57.80 feet;

12) South 73 degrees 34 minutes 16 seconds East, 96.11 feet; 13) South 16 degrees 32 minutes 55 seconds East, 120.84 feet; 14) South 20 degrees 4 minutes 51 seconds West, 69.22 feet; 15) South 42 degrees 22 minutes 2 seconds West, 182.82 feet;

16) South 3 degrees 23 minutes 21 seconds West, 58.95 feet; 17) South 25 degrees 52 minutes 47 seconds East, 132.77 feet; 18) North 89 degrees 21 minutes 46 seconds East, 925.13 feet;

19) North 63 degrees 4 minutes 22 seconds East, 1040.91 feet; 20) South 53 degrees 35 minutes 39 seconds East, 181.65 feet; 21) North 77 degrees 9 minutes 51 seconds East, 219.5 feet; 22) North 29 degrees 52 minutes 29 seconds East, 74.50 feet;

23) North 20 degrees 50 minutes 49 seconds West, 64.73 feet; 24) North 57 degrees 6 minutes 16 seconds West, 209.79 feet; 25) North 32 degrees 55 minutes 50 seconds West, 116.90 feet; 26) North 6 degrees 23 minutes 31 seconds West, 115.57 feet;

27) North 10 degrees 16 minutes 2 seconds East, 113.31 feet; 28) North 26 degrees 7 minutes 42 seconds West, 242.03 feet; 29) North 5 degrees 2 minutes 45 seconds West, 92.19 feet;

30) North 25 degrees 54 minutes 12 seconds East, 167.96 feet; 31) North 71 degrees 21 minutes 45 seconds East, 140.91 feet;

File No.: 01723674

EXHIBIT “A”

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32) South 29 degrees 43 minutes 32 seconds East, 168.38 feet; 33) South 24 degrees 20 minutes 38 seconds East, 222.60 feet;

34) South 19 degrees 46 minutes 49 seconds East 177.06 feet; 35) South 33 degrees 38 minutes 38 seconds East, 203.35 feet; 36) South 51 degrees 34 minutes 40 seconds East, 79.26 feet; 37) North 46 degrees 58 minutes 20 seconds East, 200.37 feet, to the End of Said Meander

Line; THENCE North 79 degrees 00 minutes 00 seconds East, 190.00 feet;

THENCE North 42 degrees 30 minutes 00 seconds East, 165.00 feet; THENCE North 64 degrees 50 minutes 31 seconds East, 74.47 feet;

THENCE North 65 degrees 00 minutes 00 seconds East, 208.00 feet; THENCE South 26 degrees 00 minutes 00 seconds West, 600.00 feet;

THENCE North 90 degrees 00 minutes 00 seconds West, 197.50 feet;

THENCE South 50 degrees 19 minutes 38 seconds West, 17.77 feet; THENCE South 58 degrees 00 minutes 28 seconds West, 458.66 feet;



THENCE South 25 degrees 25 minutes 20 seconds West, 179.32 feet; THENCE North 85 degrees 9 minutes 48 seconds West, 260.93 feet;

THENCE South 14 degrees 8 minutes 10 seconds West, 278.43 feet;

THENCE South 31 degrees 41 minutes 11 seconds West, 95.19 feet to the POINT OF BEGINNING; EXCEPT any portion of property described in Parcel No. 5 herein above.

File No.: 01723674

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SCHEDULE B – SECTION I REQUIREMENTS

The following are the requirements to be complied with prior to the issuance of said policy or policies. Any other instrument recorded subsequent to the date hereof may appear as an exception under Schedule B of the policy to be issued. Unless otherwise noted, all documents must be recorded in the office of the Recorder of the County in which said property is located.

1. Furnish proof that any outstanding municipal and/or county tax assessments which are due

have been paid current. 2. USUAL preliminary inspection report by an employee of the Company. The right is reserved to

make additional requirements or exceptions upon examination.

3. If a work of improvement is contemplated, no work is to be commenced or materials delivered to the Land the subject of this transaction prior to the recordation of the loan documents. If work is commenced or materials delivered, the Company reserves the right to add additional items or make further requirements and the closing may be delayed.

4. Notify the title department 3 days prior to the contemplated close of escrow to arrange for a

priority inspection of said Land. No work is to be commenced or materials delivered until the mortgage to be insured has been recorded. The Company reserves the right to add additional items or make further requirements if the inspection of said Land discloses the commencement of work or the delivery of materials and the closing may be delayed.

5. The transaction contemplated in connection with this Report is subject to the review and approval of the Company’s Corporate Underwriting Department. The Company will require a liability amount and list of requested endorsements prior to submitting the transaction for said approval. Failure to provide this information may result in the closing being delayed. The Company reserves the right to add additional items or make further requirements after review of the requested documentation.

File No.: 01723674

SCHEDULE B – SECTION I

REQUIREMENTS

(Continued)

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6. The Company will require the following documents for review prior to the issuance of any title assurance predicated upon a conveyance or encumbrance from the entity named below:

Limited Liability Company: Venture 40, LLC a) A copy of its operating agreement, if any, and any and all amendments, supplements

and/or modifications thereto, certified by the appropriate manager or member b) If a domestic Limited Liability Company, a copy of its Articles of Organization and all

amendments thereto with the appropriate filing stamps c) If the Limited Liability Company is member-managed, a full and complete current list

of members certified by the appropriate manager or member d) If the Limited Liability Company was formed in a foreign jurisdiction, evidence,

satisfactory to the Company, that it was validly formed, is in good standing and authorized to do business in the state of origin

e) If less than all members, or managers, as appropriate, will be executing the closing

documents, furnish evidence of the authority of those signing. The Company reserves the right to add additional items or make further requirements after

review of the requested documentation. 7. RECORD Trustee’s Deed correcting the Legal Description referred to below for the reason stated:

Recorded June 16, 2009 Document No. 2009-11093

Reason for correction Parcel 10, Line 33) South 24 degrees 20 minutes 38 seconds East, 22.60 feet should read 222.60 feet 8. PRIOR to the Company's willingness to insure this transaction, the Company must review the

Trustee's file in the matter of the Trustee's deed referred to below:

Document No 2009-11138 Trustee William Scott Jenkins, Jr., a member of the State Bar of Arizona The Company reserves the right to make additional requirements or exceptions based on the examination of Trustee's records.

9. PRIOR to the Company's willingness to insure this transaction, the Company must review the

Trustee's file in the matter of the Trustee's deed referred to below:

Document No 2009-11093 Trustee William Scott Jenkins, Jr. a member of the State Bar of Arizona The Company reserves the right to make additional requirements or exceptions based on the examination of Trustee's records.

File No.: 01723674


REQUIREMENTS

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10. Furnish for recordation a deed as set forth below:

Type of deed: Special Warranty Deed Grantor(s): Federal Deposit Insurance Corporation, (the “FDIC”), as Receiver for

Towne Bank of Arizona Grantee(s): Venture 40, LLC, a(n) ________________ limited liability company Note: ARS 11:1133 may require the completion and filing of an Affidavit of Value.

11. RECORD Deed of Trust to be insured. 12. Payment of taxes for the year 2010, plus interest and penalties, if any. TAX NOTE:

Year 2010 Parcel No. 304-16-002H Total Tax $4,041.74 First Half NOT PAID Second Half NOT PAID (Parcel 1)

TAX NOTE:

Year 2010 Parcel No. 304-16-002J Total Tax $1,212.60 First Half NOT PAID

Second Half NOT PAID (Parcel 1)

TAX NOTE:

Year 2010

Parcel No. 304-16-002K Total Tax $646.18 First Half NOT PAID Second Half NOT PAID (Parcel 2)

TAX NOTE:

Year 2010 Parcel No. 304-16-002L Total Tax $770.24 First Half NOT PAID Second Half NOT PAID (Parcel 2)

File No.: 01723674


REQUIREMENTS

(Continued)

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TAX NOTE:

Year 2010 Parcel No. 304-16-002G Total Tax $4,002.28 First Half NOT PAID Second Half NOT PAID (Parcel 4)

TAX NOTE: Year 2010 Parcel No. 304-16-006 Total Tax $1,130.58 First Half NOT PAID


TAX NOTE:

Year 2010 Parcel No. 304-16-007A

Total Tax $3,219.66 First Half NOT PAID Second Half NOT PAID (Parcel 5)

TAX NOTE:

Year 2010 Parcel No. 304-16-008 Total Tax $1,348.08 First Half NOT PAID Second Half NOT PAID (Parcel 5)

TAX NOTE:

Year 2010 Parcel No. 304-92-002C Total Tax $1,322.48 First Half NOT PAID


TAX NOTE:

Year 2010 Parcel No. 304-92-004K


File No.: 01723674


REQUIREMENTS

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TAX NOTE:

Year 2010 Parcel No. 304-92-007 Total Tax $3,901.44 First Half NOT PAID Second Half NOT PAID (Parcel 6)

TAX NOTE: Year 2010 Parcel No. 304-92-007A Total Tax $914.94 First Half NOT PAID


TAX NOTE:

Year 2010 Parcel No. 304-92-006

Total Tax $4,216.54 First Half NOT PAID Second Half NOT PAID (Parcel 7 and 8)

TAX NOTE:

Year 2010 Parcel No. 304-92-004D Total Tax $164.66 First Half NOT PAID Second Half NOT PAID (Parcel 9)

TAX NOTE:

Year 2010 Parcel No. 304-92-002B Total Tax $2,032.28 First Half NOT PAID


TAX NOTE:

Year 2010 Parcel No. 304-92-004J


File No.: 01723674


REQUIREMENTS

(Continued)

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Please be advised that our search did not disclose any open Deeds of Trust of record. If you should have knowledge of any outstanding obligation, please contact the Title Department

immediately for further review prior to closing.

END OF SCHEDULE B – SECTION I

File No.: 01723674

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SCHEDULE B – SECTION II EXCEPTIONS

Schedule B of policy or policies to be issued will contain exceptions to the following matters unless the same are disposed of to the satisfaction of the Company: . A. Defects, liens, encumbrances, adverse claims or other matters, if any, created, first appearing

in the public records or attaching subsequent to the Effective Date but prior to the date the proposed Insured acquires for value of record the estate or interest or mortgage thereon covered by this Commitment.

1. RESERVATIONS contained in the Patent from the United States of America, reading as follows:

SUBJECT to any vested and accrued water rights for mining, agricultural, manufacturing or other purposes, and rights to ditches and reservoirs used in connection with such water rights as may be recognized and acknowledged by the local customs, laws and decisions of courts; and there is reserved from the lands hereby granted, a right of way thereon for ditches or canals constructed by the authority of the United States of America.

2. Water rights, claims or title to water, whether or not disclosed by the public records. 3. Property taxes, which are a lien not yet due and payable, including any assessments collected

with taxes to be levied for the year 2011. 4. Liabilities and obligations imposed upon said Land by its inclusion within any district formed

pursuant to Title 48, Arizona Revised Statutes. 5. Easement(s) for the purpose(s) shown below and rights incidental thereto as set forth in a

document: Purpose: canals, laterals, ditches and reservoirs and appurtenant facilities

Recording No: Book 1 of NARE, page 20; Recording No: Book 1 of NARE, page 160; Recording No: Book 2 of NARE, page 59; and Recording No: Book 6 of NARE, PAGE 210

(Parcels 5 through 10) 6. Easement(s) for the purpose(s) shown below and rights incidental thereto as set forth in a

document: Purpose: stock watering and appurtenant facilities Recording No: Book 1 of NARE, page 160; Recording No: Book 7 of NARE, page 449

(Parcels 5 through 10)

7. RESTRICTIONS, CONDITIONS, COVENANTS, RESERVATIONS, including but not limited to any recitals creating easements, liabilities, obligations or party walls, omitting, if any, from the above, any restrictions based on race, color, religion sex, handicap, familial status or national origin contained in instrument: Recorded in Book 14 of Deeds

Page 77 (Parcels 5 through 10)

File No.: 01723674 SCHEDULE B – SECTION II

EXCEPTIONS

(Continued)

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8. RESTRICTIONS, CONDITIONS, COVENANTS, RESERVATIONS, including but not limited to any recitals creating easements, liabilities, obligations or party walls, omitting, if any, from the

above, any restrictions based on race, color, religion sex, handicap, familial status or national origin contained in instrument: Recorded in Book 17 of Deeds Page 138 (Parcels 5 through 10)

9. Easement(s) for the purpose(s) shown below and rights incidental thereto as set forth in a document: Purpose: electric lines and appurtenant facilities Recording No: Book 29 of Deeds, page 223 (Parcels 5 through 10)

10. Easement(s) for the purpose(s) shown below and rights incidental thereto as set forth in a

document: Purpose: electric lines Recording No: Docket 80, page 595 (All Parcels)


document: Purpose: electric lines and appurtenant facilities Recording No: Docket 121, page 47 (Parcels 5 through 10)


document: Purpose: electric lines and appurtenant facilities Recording No: Docket 143, page 504


document: Purpose: ingress and egress Recording No: Docket 656, page 239


document: Purpose: ingress and egress Recording No: Docket 658, page 694

(Parcels 5 through 10)


EXCEPTIONS

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15. Easement(s) for the purpose(s) shown below and rights incidental thereto as set forth in a document:

Purpose: ingress and egress Recording No: Docket 659, page 93 (Parcels 5 through 10)

16. RESTRICTIONS, CONDITIONS, COVENANTS, RESERVATIONS, including but not limited to any recitals creating easements, liabilities, obligations or party walls, omitting, if any, from the

above, any restrictions based on race, color, religion sex, handicap, familial status or national origin contained in instrument: Recorded in Docket 666 Page 643; and Recorded in Docket 770

Page 301; and Recorded in Docket 1184 Pages 865 and 868 (All parcels)

17. MATTERS SHOWN ON SURVEY:

Recorded in Book 5 of Land Surveys Page 31 (Parcel 1, 2 and 4)


document:

Purpose: sewer disposal purposes Recording No: Docket 1021, page 599; and Recording No: 1996-3673 and Recording No: 1998-20350 (Parcels 1, 2 and 4)

19. Easement(s) for the purpose(s) shown below and rights incidental thereto as set forth in a document: Purpose: sewer lines, pipes and related facilities, roadway Recording No: Docket 1071, page 815; Recording No: 1996-3673; and Recording No: 1998-20350

(Parcels 1, 2 and 4) 20. AGREEMENT according to the terms and conditions contained therein:

Purpose sewer plant access Dated March 27, 1992 Recorded March 31, 1992

Docket 1072 Page 822 (Parcels 2, 5 through 10)


EXCEPTIONS

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21. Easement(s) for the purpose(s) shown below and rights incidental thereto as set forth in a document:

Purpose: roadway Recording No: Docket 1129, page 930 (Parcels 1 and 4)

22. AGREEMENT according to the terms and conditions contained therein:

Purpose Agreement for Management Dated March 27, 1992 Recorded October 5, 1993 Docket 1151 Page 130 (Parcels 1 and 4)


document: Purpose: roadway and utilities Recording No: 1996-7729 (Parcels 1 and 4)

24. MATTERS SHOWN ON SURVEY:

Recorded in Book 32 of Maps Page 71 (Parcels 1 and 4)

25. MATTERS SHOWN ON SURVEY: Recorded in Book 10 of Land Surveys Page 25; and Recorded in Book 29 of Land Surveys Pages 53 and 54

(Parcels 5 through 10) 26. ASSIGNMENT OF SEWER CAPACITY, OPTION AGREEMENT according to the terms and

conditions contained therein: Recorded in Document No. 1998-20350; and Recorded in Document No. 1998-22826

(Parcels 5 through 10) 27. AGREEMENT according to the terms and conditions contained therein:

Purpose Easement and Maintenance Agreement Dated May 3, 2000 Recorded May 19, 2000

Document No. 2000-9482; and Ratification 2002-6298 (Parcels 5 through 10)


EXCEPTIONS

(Continued)

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28. AGREEMENT according to the terms and conditions contained therein:

Dated August 17, 2006 Recorded August 24, 2006 Document No. 2006-25597 (Parcels 5 through 10)

. END OF SCHEDULE B – SECTION II

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ALTA HOMEOWNER'S POLICY OF TITLE INSURANCE(1-1-08)

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 those portions of any law or government regulation concerning:

a. building; b. zoning; c. land use; d. improvements on the Land; e. land division; and f. environmental protection. This Exclusion does not limit the coverage described in Covered Risk 8.a., 14, 15, 16, 18, 19, 20, 23 or 27.

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 limit the coverage described in Covered Risk 14 or 15.

3. The right to take the Land by condemning it. This Exclusion does not limit the coverage described in Covered Risk 17.4. Risks: a. that are created, allowed, or agreed to by You, whether or not they are recorded in the Public Records; b. that are Known to You at the Policy Date, but not to Us, unless they are recorded 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.e., 25, 26, 27 or 28.

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 21.

LIMITATIONS ON COVERED RISKS

Your insurance for the following Covered Risks is limited on the Owner’s Coverage Statement as follows: • For Covered Risk 16, 18, 19, and 21 Your Deductible Amount and Our Maximum Dollar Limit of Liability shown in Schedule

A. The deductible amounts and maximum dollar limits shown on Schedule A are as follows:

Your Deductible Amount Our Maximum Dollar Limit of Liability

Covered Risk 16: 1% of Policy Amount Shown in Schedule A or $2,500.00 $10,000.00 (whichever is less)

Covered Risk 18: 1% of Policy Amount Shown in Schedule A or $5,000.00 $ 25,000.00 (whichever is less)



AMERICAN LAND TITLE ASSOCIATION RESIDENTIAL TITLE INSURANCE POLICY (6-1-87)

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 building and zoning

ordinances and also laws and regulations concerning: * land use * improvements on the land * land division * 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

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* 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.

ALTA LOAN POLICY (10-17-92) WITH ALTA 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) 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 (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 to 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 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 or 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.

The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage:

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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 notices 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, 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.

2006 ALTA LOAN POLICY (06-17-06) 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 that arise by reason of: 1. (a) Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating,

prohibiting, or relating to (i) the occupancy, use, or enjoyment of the Land; (ii) the character, dimensions, or location of any improvement erected on the Land; (iii) the subdivision of land; or (iv) environmental protection; or the effect of any violation of these laws, ordinances, or governmental regulations. This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5.

(b) Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 6. 2. Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8. 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 (however, this does not modify or limit the coverage provided under

Covered Risk 11, 13 or 14); or (e) resulting in loss or damage that 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 an Insured to comply with applicable doing-

business laws of the state where the Land is situated. 5. Invalidity or unenforceability in whole or in part of the lien of the Insured Mortgage that 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, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors’ rights laws, that the transaction

creating the lien of the Insured Mortgage, is (a) a fraudulent conveyance or fraudulent transfer, or (b) a preferential transfer for any reason not stated in Covered Risk 13(b) of this policy.

7. Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching between Date of Policy and the date of recording of the Insured Mortgage in the Public Records. This Exclusion does not modify or limit the coverage provided under Covered Risk 11(b).

The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage:

EXCEPTIONS FROM COVERAGE

This policy does not insure against loss or damage (and the Company will not pay costs, attorneys’ fees or expenses) that arise by reason of: 1. (a) Taxes or assessments that 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; (b) proceedings by a public agency that may result in taxes or assessments, or notices 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 that are not shown by the Public Records but that could be ascertained by an inspection of the Land or that may be asserted by persons in possession of the Land.

3. Easements, liens or encumbrances, or claims thereof, not shown by the Public Records. 4. Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an

accurate and complete land survey of the Land and 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.

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ALTA OWNER'S POLICY (10-17-92) 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) 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.

The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage Policy will also include the following 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 notices 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.

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2006 ALTA OWNER’S POLICY (06-17-06)

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 that arise by reason of: 1. (a) Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating,

prohibiting, or relating to (i) the occupancy, use, or enjoyment of the Land; (ii) the character, dimensions, or location of any improvement erected on the Land; (iii) the subdivision of land; or (iv) environmental protection; or the effect of any violation of these laws, ordinances, or governmental regulations. This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5.

(b) Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 6. 2. Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8. 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



Covered Risk 9 and 10); or (e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Title.

4. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors’ rights laws, that the transaction vesting the Title as shown in Schedule A, is (a) a fraudulent conveyance or fraudulent transfer; or (b) a preferential transfer for any reason not stated in Covered Risk 9 of this policy.

5. Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching between Date of Policy and the date of recording of the deed or other instrument of transfer in the Public Records that vests Title as shown in Schedule A. The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above

Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage:


This policy does not insure against loss or damage (and the Company will not pay costs, attorneys’ fees or expenses) that arise by reason of:

1. (a) Taxes or assessments that 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; (b) proceedings by a public agency that may result in taxes or assessments, or notices 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 that are not shown in the Public Records but that could be ascertained by an inspection of the Land or that may be asserted by persons in possession of the Land.

3. Easements, liens or encumbrances, or claims thereof, not shown by the Public Records. 4. Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by

an accurate and complete land survey of the Land and that 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.

ALTA EXPANDED COVERAGE RESIDENTIAL LOAN POLICY (01- 01-08) 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, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating,

prohibiting or relating to

(i) the occupancy, use, or enjoyment of the Land;

(ii) the character, dimensions or location of any improvement erected on the Land;

(iii) the subdivision of land; or

(iv) environmental protection;

or the effect of any violation of these laws, ordinances or governmental regulations. This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5, 6, 13(c), 13(d), 14 or 16.

(b) Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 5, 6, 13(c), 13(d), 14 or 16.

2. Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8. 3. Defects, liens, encumbrances, adverse claims or other matters:

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(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



Covered Risk 11,16, 17, 18, 19, 20, 21, 22, 23, 24, 27 or 28); or (e) resulting in loss or damage that 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 an Insured to comply with applicable doing

-business laws of the state where the Land is situated. 5. Invalidity or unenforceability in whole or in part of the lien of the Insured Mortgage that 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. This Exclusion does not modify or limit the coverage provided in Covered Risk 26.

6. 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 modify or limit the coverage provided in Covered Risk 11.

7. Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching subsequent to Date of Policy. This Exclusion does not modify or limit the coverage provided in Covered Risk 11(b) or 25.

8. The failure of the residential structure, or any portion of it, to have been constructed before, on or after Date of Policy in accordance with applicable building codes. This Exclusion does not modify or limit the coverage provided in Covered Risk 5 or 6.

B2210-12

COMMITMENT FOR TITLE INSURANCE Issued by Commonwealth … · COMMITMENT FOR TITLE INSURANCE Issued...

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