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Contracts & Agreements_264-2017
Kelly Simoneau Escrow Officer ,drat A inerican ksimoneau@firstam.com Title Insui-ance Company 3281 E 0 Guasti Road,Suite 44 Ontario,CA 91761 INATIONIAL CrQPOMERCYAA SIIERVICE5 Phone Number:(909)510-6206 FAX: (877)461-2088 City of Redlands, a municipal corporation December 21, 2017 35 Cajon Street Redlands, CA 92373 Re: Property: 1267 West Redlands Boulevard Redlands, CA 92373 File No: NCS-882726-ONT1 ( ISS) City Clerk: Regarding your purchase of the property referenced above, First American Title insurance Company National Commercial Services will be handling your transaction. In connection with the above referenced transaction: COMPLETE IN FULL and/or SIGN AND RETURN the enclosed items: • Vesting Instruction and Amendment • Buyer Information Request • Preliminary Change of Ownership Report • W-9 Form • Exchange Information Worksheet PLEASE SIGN AND RETURN, retain the copy for your records: 0 Receipt for Natural Hazard Disclosure ENCLOSED please find the following for your records: • Natural Hazard Disclosure Report • Entity Document Request List(please provide applicable documentation) • Preliminary Title Report/Commitment for Title Insurance • Escrow Acceptance Letter In order to expedite the processing of your escrow, please email the enclosed completed documents to Kelly Simoneau at k,simoneau@flrstam.com or fax (877)461-2888, Please note that all original recordable documents must be sent directly to escrow. Should you have any questions or need further assistance, please contact the undersigned, We appreciate the opportunity to serve you. First American Title Insurance Company National Commercial File No.: NCS-882726-ONTI (KS) Services Date: 12/20/2017 Sincerely, Kelly Simoneau Escrow Officer First American Title Insurance Company KS/mv cc: Lee &Associates Commercial Real Estate Services, Inc. -Attn: Herrick Johnson; Via Email i 3281 E Gu,asti Road,Suite 440 First American Ontario,CA 91761 'ride Insurance Com ay, NATWNAA COMME.,RCIAL SERWCES VESTING INSTRUCTION AND AMENDMENT RE: 1267 West Rediands Boulevard, Redlands, CA Escrow No.: NCS-882726-ONT1 (KS) 92373 NOTE: Please indicate your choice by checking the appropriate selection. please fill in the blanks completely and print names exactly as they should appear on all documents and as you will be signing your name. PURSUANT TO THE ABOVE REFERENCED ESCROW, ESCROW HOLDER IS INSTRUCTED TO REFLECT MY/OUR NAME(S) AND VESTING AS FOLLOWS: 1. HUSBAN'DAND WIFE (Print names exactly as they should appear on documents incWding loan documents) AND A. As Joint Tenants B. As Community Property C. As Community Property with right of survivorship D. As Tenants in Common Each as to an undivided_% interest- percentage or fraction (i.e., 1/2 or SO%) E. Other, please specify 2. MARRIED MAN -AS HIS SOLE AND SEPARATE PROPERTY MARRIED WOMAN -AS HER SOLE AND SEPARATE PROPERTY Print Name exactly as it should appear on documents,including loan documents PLEASE INDICATE THE FULL NAME OF THE SPOUSE FOR PREPARATION OF AN INTERSPOUSAL TRANSFER DEED. Page 1 3. INDIVIDUAL(Print names exactly as they should appear on documents including loan documents) A, A SINGLE MAN (never married) Cr. ( ) A SINGLE WOMAN (never married) B. A WIDOWER (wife is deceased) E. ( ) A WIDOW (husband is deceased) C. AN UNMARRIED MAN (divorced) F. ( ) AN UNMARRIED WOMAN (divorced) AND A. A SINGLE MAN (never married) D� ( ) A SINGLE WOMAN (never married) B. A WIDOWER (wife is deceased) E. ( ) A WIDOW (husband is deceased) C. AN UNMARRIED MAN (divorced) R ( ) AN UNMARRIED WOMAN (divorced:) ADDITIONAL VESTING IF MORE THAN ONE INDIVIDUAL: A. As Joint Tenants B. As Tenants in Common Each as to an undivided % interest- percentage or fraction (i.e., 1/2 or 50%) C. Other, please specify - 4. TRUST (Please confirm with your lender it they will make a loan to the trust prior to completing this form) and (Name of Trustee) (Name of Trustee) dated (Name of Trust) (Date of Trust) 5. [ x ] OTHER: A Municipall Corporation HOW YOU HOLD TITLE TO YOUR PROPERTY CAN HAVE SERIOUS TAX CONSEQUENCES. IT is STRONGLY RECOMMENDED THAT'YOU SEEK TAX AN:D/OR LEGAL COUNSEL WHEN COMPLETING THIS FORM. City of Blands,,a 4nz!f it 1corporation p ByC Paul W. Foster Mayor ATTEST: X 4�6nne Donaldson City Clerk y v- O C U y U a c a cz r—ONy G tan a 7 u 73 � Lt"RS N 0 c3 � O 3' v� c' O tn CL CL ra u ✓C E; y Z ej zt A. 7 G-,z; 0 c ca rypy r� >rn r U ^O C�� O p r+/ ;+` . 4yi '.G w 'G r� � �+ � '4 "O �*" i.'. a y•i a V] � vii '. _vi cC3 p ! E > (Qh' v •'p� O A 6] :p':L Q.1 ':'a 'nc a� ?+ � � a� a e,., c ai ccs cz G " t U U Uvl 'L7 Lt Ct n f= o K Ed C7 O a a .- `O p"yw:,'_.Y. C Q.' ,� ' u o• C F d n ID" do 0 ID a� a� ax afli " °� :� > o ' v o o G ¢ T ai :mom p c ►� o :ai 12: 6. N v-, coi o ,� ' d '_ u .� :o y"po: .0 d C �►{ �►{ rL c o cud c o `o aFi 3 aui F O rig w W u C3 �H o" cdw o � o W � � F■ OOa aha n u a a`ius ZAz C6y n >, 2 n o q ca CL Z ps ' m : C' a CD v >. DoE H o d o caoa °' y c>i +: a ; w C7 C ; 0 13 th Ij G U 0E a a V_ 0 u O o u p v c ao U) O: i �. Y7 h '6 p y W Page 3 Kelly SimoIneau Escrow Officer First Arnerican ksimoneau@firstam,com 3281 E Guasti Road,Suite 410 Ontario,CA 91761 Title Insurance. Company PIZ A 0 r14 A L C 0 PA M IE R C I A E R'IV C.'E S Phone Number: (909)510-6206 FAXU (877)461-2088 File NoI.: NCS-882726-ONTI Buyer, I Borrower Information Reques Please supply us the information, below in order to expedite our escrow. New Lender is: NOT APPLICABLE Loan Officer: Phone: Fax: E-Mail: Name of Insurance Co. is: Agent: Phone: Fax: E-Mail: Buyer/Borrower Contact Information: City of Red1lands, a municipal corportation Mail Correspondence to: Attn: Mayor Foster PO Box 3005, Redlands, CA 92373 Home Phone: Office Phone: 909-798-7631 Cell: Fax: E-Mail: cboatman@cityofredlands.org *if the above address you've supplied is a P.C. Box, do you have a physical' address should we need to overnight something in the future? Yes, the address is: 35 Cajon Street, Redlands, CA 92.373 City of Redlands, aji al coTWUon co By:C-1 ,6- Paul W. Foster Mayor ATTEST: J 6 e Donaldson ify Clerk IMPORTANT INFORMATION ABOUT THE COMPLETION OF THIS FORM PENALTIES ASSESSED BY THE TAX COLLECTOR FOR NON-COMPLETION HAVE INCREASED CA Senate Bill 507 signed into Law and effective in 2012 amends Sections of the Revenue and Taxation Code relating to taxation, increasing the penalties imposed for failure to file a change of ownership report. Because of the potential for significantly higher penalties, it is very important that you: 1) Complete the Preliminary Change of Ownership Report ("PCOR") with all information; 2) Ensure that the mailing address for the grantee is complete and accurate to ensure that the Assessor can contact you with any inquiries. The Title Company/Escrow Officer cannot help you complete this document because of liability reasons. If you are unable to complete the PCOR or it is rejected for filing, the County will charge an additional $20 fee and the Assessor will mail notification to you requesting completion of the POOR. If you don't complete and return the PCOR at that time,a penalty can be assessed and added to your tax bill. BOE-502-A(P1)REV. 12(05-13) FOR RECORDER'S USE ONLY PRELIMINARY CHANGE OF OWNERSHIP REPORT To be completed by the transferee (buyer) prior to a transfer of subject property, in accordance with section 480.3 of the Revenue and Taxation Code. A Preliminary Change of Ownership Report must be filed with each conveyance in the County Recorder's office for the county where the property is located. NAME AND MAILING ADDRESS OF BUYER/TRANSFEREE (Make necessary corrections to the pnnted name and mailing address) ASSESSOR'S PARCEL.NUMBER City of Redlands,a municipal corporation 0169-351-04-0-000 SELLER/TRANSFEROR Cheryl A.Nelson BUYER'S DAYTIME TELEPHONE NUMBER BUYER'S EMAIL ADDRESS STREET ADDRESS OR PHYSICAL LOCATION OF REAL PROPERTY 1267 West Redlands Boulevard Redlands CA 92373 MAIL PROPERTY TAX INFORMATION TO(NAME) ADDRESS CITY STATE ZIP CODE [:]YES 2 NO This property is intended as my principal residence.If YES,please indicate the date MO DAY YEAR of occupancy or intended occupancy. PART 1.TRANSFER INFORMATION Please complete all statements This section contains possible exclusions from reassessment for certain types of transfers. YES NO ❑ ® A. This transfer is solely between spouses(addition or removal of spouse,death of spouse,divorce settlement,etc.). ❑ ® B. This transfer is solely between domestic partners currently registered with the California Secretary of State(addition or removal of partner,death of partner,termination settlement,etc.). ❑ [Z *C. This is a transfer: ❑ between parent(s)and child(ren) ❑ from grandparent(s)to grandchild(ren). ❑ ® *D. This transfer is the result of a cotenants death.Date of death ❑ 0 *E. This transaction is to replace a principal residence by a person 55 years of age or older. Within the same county? ❑ YES ❑ NO ❑ FXJ *F. This transaction is to replace a principal residence by a person who is severely disabled as defined by Revenue and Taxation Code section 69.5.Within the same county? ❑ YES ❑ NO ❑ ® G. This transaction is only a correction of the name(s)of the person(s)holding title to the property(e.g.,a name change upon marriage). If YES,please explain: ❑ ® H. The recorded document creates,terminates,or reconveys a lender's interest in the property. ❑ ® I. This transaction is recorded only as a requirement for financing purposes or to create,terminate,or reconvey a security interest (e.g.,cosigner),If YES,please explain: ❑ ® 1. The recorded document substitutes a trustee of a trust,mortgage,or other similar document. K. This is a transfer of property: ❑ ® 1.tolfrom a revocable trust that may be revoked by the transferor and is for the benefit of ❑ the transferor,and/or ❑ the transferor's spouse F-1 registered domestic partner. ❑ 2.to/from a trust that may be revoked by the creator/grantor/trustor who is also a joint tenant,and which names the other joint tenant(s)as beneficiaries when the creator/grantor/trustor dies. ❑ ❑ 3.to/from an irrevocable trust for the benefit of the ❑ creator/grantor/trustor and/or ❑ grantor's/trustor's spouse ❑ grantor's/trustor's registered domestic partner. ❑ ® L. This property is subject to a lease with a remaining lease term of 35 years or more including written options. ❑ ['2 M. This is a transfer between parties in which proportional interests of the transferor(s)and transferee(s)in each and every parcel being transferred remain exactly the same after the transfer. ❑ © N. This is a transfer subject to subsidized low-income housing requirements with governmentally imposed restrictions. ❑ *0. This transfer is to the first purchaser of a new building containing an active solar energy system. *Please refer to the instructions for Part 1. Please provide any other information that will help the Assessor understand the nature of the transfer. THIS DOCUMENT IS NOT SUBJECT TO PUBLIC INSPECTION BOE-502-A(P2)REV, 12(05-13) PART 2. OTHER TRANSFER,INFORMATION Check and complete as applicable, A, Date of transfer,if other than recording date: B. Type of transfer: Purchase [:]Foreclosure E]Gift []Trade or exchange []Merger,stock,or partnership acqulsition(Form BOE-100-B) Contract of sale. Date of contract: [—]inheritance,Date of death: -sale/leaseback [J creation of a lease, E]Assignment of a lease ]Termination of a lease. Date lease began; Original term in years(including written pptions,:_ Remaining term in years(including written optioptions);bn Other.Please explain: C. Only a partial interest in the property was transferred. []YES 0 NO If YES,indicate the percentage transferred: % PART 3. PURCHASE PRICE AND TERMS OF SALE Check and complete as applicable, A. Total purchase price B. Cash down payment or value of trade or exchange excluding closing costs Amount$ C. First deed of trust @ —%interest for_years. Monthly payment Amount$ FHA(_Discount Points) 7 Cal-Vet E]VA(__Discount Points) Fixed rate E]variable rate Bank/Savings&Loan/Credit Union Loan carried by seller Balloon payment$ Due date: D. Second deed of trust @ interest for _years.Monthly payment$ Amount$ Fixed rate ❑variable rate 0 Bank/Savings&Loan/Credit Union F7 Loan carried by seller Balloon payment$ Due clate: E. Was an Improvement Bond or other public financing assumed by the buyer?[]YES �NO Outstanding balance$ F. Arnount,if any,of real estate commission fees paid by the buyer which are not included in the purchase price $ G. The property was purchased: Through real estate broker.Broker name:Lee&Associates Phone number: Commercial Real Estate Services,Inc.-Riverside Direct from seller []From a family member-Relationship Other, Please explain: H. Please explain any special terms,seller concessions,broker/agent fees waived,financing,and any other information(e.g.,buyer assumed the existing loan balance)that would assist the Assessor in the valuation of your property.. PART 4: PROPERTY INFORMATION Check and complete as apollcable, A. Type of property transferred single-family residence Co-op/Own-your-own manufactured home Multiple-family residence. Number of units: Condominium Unimproved lot ]Other.Description: (i.e.,timber,mineral,water rights,etc.) EJ Timeshare Commercial/Industrial B. �YES R NO Personal/business property,or incentives, provided by seller to buyer are included in the put-chase price.Examples of personal property are furniture,farm equipment,machinery,etc. Examples of incentives are club memberships,etc.Attach list if available. If YES,enter the value of the personal/business property: $-- Incentives$ C. F]YES 2 NO A manufactured home is included in the purchase price. If YES,enter the value attributed to the manufactured home: FYES F >�NO The manufactured home is subject to local property tax,If NO,enter decal number ] D. []YES N NO The property produces rental or other income. If YES,the income is fromF]Lease/rent []Contract Fj mineral rights F-1 Other: E. The condition of the property at the time of sale was:, E]Good [:]Average ❑Fair El Poor Please describe: CERTIFICATION I certify(of declare)that the foregoing and aff information hereon,includIng any atccoinpanytng statements OrdOCUMentS,IS true and correct"to the best ofniy knowledge and belief. ........... �SlGfUgE-O�TF�SU R/TR R ICER DATE TEIEPHONE rN -EASE RUNT) TTTLE E-MAIL ADDRESS NAME OF BUYER[TRANSFEREEPLEGAL REPRESENTATIVEICORPORATE OFFICER(PI IMJIL:1�21� The Assessor's office may contact you for additional information regarding this transaction, BOE-502-A(133)REV. 12(05-13) ADDITIONAL INFORMATION Please answer all questions in each section,and sign and complete the certification before filing.This form may be used in all 58 California counties.If a document evidencing a change in ownership is presented to the Recorder for recordation without the concurrent filing of a Preliminary Change cf Ownershlp Report;the Recorder may charge an additional recording fee of twenty dollars($20). NOTICE:The property which you acquired may be subject to a supplemental assessment in an amount to be determined by the County Assessor. Supplemental assessments are not paid by the title or escrow company at close of escrow,and are not included in lender impound accounts.You may be responsible for the current or upcoming property taxes even if you do not receive the tax bili. NAME AND MAILING ADDRESS OF BUYER: Please make necessary corrections to the printed name and mailing address. Enter Assessor's Parcel Number, name of seller,buyer's daytime telephone number, buyer's email address,and street address or physical location of the real property. NOTE:Your telephone number and/or email address is veer important If there is a question or a problem,the Assessor needs to be able to contact you. MAIL PROPERTY TAX INFORMATION TO: Enter the name,address,city,state,and zip code where property tax information should be mailed.This must be a valid mailing address. PRINCIPAL RESIDENCE:To help you determine your principal residence,consider(1)where you are registered to vote,(2)the home address on your automobile registration,and(3)where you normally return after work.If after considering these criteria you are still uncertain,choose the place at which you have spent the major portion of your time this year.Check YES if the property is intended as your principal residence,and indicate the date of occupancy or intended occupancy. PART 1:TRANSFER INFORMATION If you check YES to any of these statements,the Assessor may ask for supporting documentation. C,D,E,F:If you checked YES to any of these statements,you may qualify for a property tax reassessment exclusion,which may allow you to maintain your property's previous tax base.A claim form must be filed and all requirements met in order to obtain any of these exclusions.Contact the Assessor for claim forms. NOTE: If you give someone money or property during your life,you may be subject to federal gift tax.You make a gift if you give property(including money),the use of property,or the right to receive income from property without expecting to receive something of at least equal value in return.The transferor(donor)may be required to file Form 709, Federal Gift Tax Return,with the Internal Revenue Service if they make gifts in excess of the annual exclusion amount. G:Check YES if the reason for recording is to correct a name already on title[e.g.,Mary]ones,who acquired title as Mary J.Smith,is granting to Mary ]ones).This is not for use when a name is being removed from title. H:Check YES if the change involves a lender,who holds title for security purposes on a loan,and who has no other beneficial interest in the property. "Beneficial interest"is the right to enjoy all the benefits of property ownership.Those benefits include the right to use,sell,mortgage,or lease the property to another.A beneficial interest can be held by the beneficiary of a trust,while legal control of the trust is held by the trustee. It:A"cosigner"is a third party to a mortgage/Joan who provides a guarantee that a loan will be repaid.The cosigner signs an agreement with the lender stating that if the borrower fails to repay the loan,the cosigner will assume legal liability for it. M.This is primarily for use when the transfer is into,out of,or between legal entities such as partnerships,corporations,or limited liability companies. Check YES only if the interest held in each and every parcel being transferred remains exactly the same. N:Check YES only if property is subject to subsidized low-income housing requirements with governmentally imposed restrictions;property may qualify for a restricted valuation method(i.e., may result in lower taxes). O:If you checked YES,you may qualify for a new construction property tax exclusion.A claim form must be filed and all requirements met in order to obtain the exclusion.Contact the Assessor for a claim form. PART 2:OTHER TRANSFER INFORMATION A:The date of recording is rebuttably presumed to be the date of transfer.If you believe the date of transfer was a different date(e.g.,the transfer was by an unrecorded contract,or a lease identifies a specific start date),put the date you believe is the correct transfer date.If it is not the date of recording,the Assessor may ask you for supporting documentation. B:Check the box that corresponds to the type of transfer. If OTHER is checked,please provide a detailed description.Attach a separate sheet if necessary. 130E-502-A(P4)REV. 12(05-13) PART 3:PURCHASE PRICE AND TERMS OF SALE It is important to complete this section completely and accurately.The reported purchase price and terms of sale are important factors in determining the assessed value of the property,which is used to calculate your property tax bill.Your failure to provide any required or requested information may result in an inaccurate assessment of the property and in an overpayment or underpayment of taxes. A.Enter the total purchase price, not including closing costs or mortgage insurance, "Mortgage insurance"is insurance protecting a lender against loss from a mortgagor's default,issued by the FHA or a private mortgage insurer. B. Enter the amount of the down payment,whether paid in cash or by an exchange.If through an exchange,exclude the closing costs. "Closing costs"are fees and expenses,over and above the price of the property,incurred by the buyer and/or seller,which include title searches,lawyer's fees,survey charges,and document recording fees. C.Enter the amount of the First Deed of Trust,if any.Check all the applicable boxes,and complete the information requested. A"balloon payment"is the final installment of a loan to be paid in an amount that is disproportionately larger than the regular installment. D. Enter the amount of the Second Deed of Trust,if any.Check all the applicable boxes,and complete the information requested. E.If there was an assumption of an improvement bond or other public financing with a remaining balance,enter the outstanding balance,and mark the applicable box. An"improvement bond or other public financing"is a lien against real property due to property-specific improvement financing,such as green or solar construction financing,assessment district bonds,Mello-Roos(a form of financing that can be used by cities,counties and special districts to finance major improvements and services within the particular district)or general improvement bonds,etc.Amounts for repayment of contractual assessments are included with the annual property tax bill. F.Enter the amount of any real estate commission fees paid by the buyer which are not included in the purchase price. G.If the property was purchased through a real estate broker,check that box and enter the broker's name and phone number.If the property was purchased directly from the seller(who is not a family member of one of the parties purchasing the property),check the"Direct from seller"box.If the property was purchased directly from a member of your family,or a family member of one of the parties who is purchasing the property,check the "From a family member"box and indicate the relationship of the family member(e.g.,father,aunt,cousin,etc.).If the property was purchased by some other means(e.g.,over the Internet,at auction,etc.),check the"OTHER"box and provide a detailed description(attach a separate sheet if necessary). H. Describe any special terms(e.g.,seller retains an unrecorded life estate in a portion of the property, etc.),seller concessions(e.g.,seller agrees to replace roof,seller agrees to certain interior finish work,etc.),broker/agent fees waived(e.g.,fees waived by the broker/agent for either the buyer or seller),financing,buyer paid commissions,and any other information that will assist the Assessor in determining the value of the property. PART 4:PROPERTY INFORMATION A.Indicate tate property type or property right transferred. Property rights may include water,timber,mineral rights,etc. B.Check YES if personal,business property or incentives are included in the purchase price in Part 3. Examples of personal or business property are furniture,farm equipment,machinery,etc.Examples of incentives are club memberships(golf,health,etc.),ski lift tickets,homeowners'dues,etc. Attach a list of items and their purchase price allocation.An adjustment will not be made if a detailed list is not provided. C.Check YES if a manufactured home or homes are included in the purchase price.Indicate the purchase price directly attributable to each of the manufactured homes. If the manufactured home is registered through the Department of Motor Vehicles in lieu of being subject to property taxes, check NO and enter the decal number. D.Check YES if the property was purchased or acquired with the intent to rent or lease it out to generate income,and indicate the source of that anticipated income. Check NO if the property will not generate income,or was purchased with the intent of being owner-occupied. E. Provide your opinion of the condition of the property at the time of purchase.If the property is in"fair"or"poor"condition,include a brief description of repair needed. Form W-9 Request for Taxpayer Give Form to the (Rev.November 2017) requester. Do not Department of the Treasury Identification Number and Certification send to the IRS. Internal Revenue Service l~Go to wwwJr$,gov1Forfn W9 for instructions and the latest information. 1 Naine(as shown on your Income tax return).Name is required on this line;do not leave this line blank. City of Redlands,a municipal corporation 2 Business name/disregarded entity name,if different from above rwi Check appropriate box for federal tax classification of the person whose name is entered an line 1,Check only one of the 4 Exemptions(codes apply only to M M following seven boxes. OL certain entities,not individuals;see Individuall proprietor or, 7 C Corporation [-]S Corporation [-]Partnership CVTrust/estate instructions on page 3): single-mernber LLC C. 2 Exempt payee,code(if any) Zr't L]Limited liability Company.Enter the tax classification(C-C corporation,S=S corporation,P=partnershfp) 01, Exemption from FATCA reporting 6 M Note.Check the appropriate box in the line above for the tax classification of the single-member owner,Do not check code(if any) r W LLC if the LLC is classified as a single-member LLC that is disregarded from the owner unless the owner of the LLC is C another LLC that is not disregarded from the owner for U.S.federal tax purposes.Otherwise,a single-member LLC that is disregarded from the owner should check the appropriate box for the tax classification of'its owner. Other(see instructions) 0, (Appbt©ercaunis mamexani outsdo ----------- C1. S Address(number,street,and apt.or—suite no.)see instructions. _Re'que st—er'sna in-e--a—Wad dress_(optional)--------- PO Box 3005 " " C'n state,and Z-1P code Redlands,CA 92373 7 List account number(s)here(optional) § Taxpayer Identifica, Enter your TIN in the appropriate box.The cur!ly..number backup withholding, For indlividuals,this is resident alien,sole proprietor,or disregard FT7 entities, it is your emplioyer identification n;MMMW�" TIN,later, or Note.If the account is in more than one name,see the instructions for Bine 1.Also see What Name and Emito er identification number Number TD Give the Requesterfor guidelines on whose number to enter, [Lo r I P7 certification Under penalties of perjury,I certify thaE ......... ................ .......... 1. The number shown on this form is my correct taxpayer identification number(or I am waiting for a number to be issued to me);and 2. 1 am not subject to backup withholding because: (a)I am exempt from backup withholding,or(b)I have not been notified by the Internal Revenue Service(IRS)that I am subject to backup withholding as a result of a failure to report all interest or dividends,or(c)the IRS has notified me that I am no longer subject to backup withholdiiig,- and 3. 1 am a U.S,citizen or other U.S. person(defined below); and 4. The FATCA code(s)entered on this form(if any)indicating that I am exempt from FATCA reporting is,correct. Certification instructions.You must cross out item 2 above if you have been notified by t the IRS that you are currently subject to backuT withholding because you have failed to report all interest and dividends on your tax return. For real estate transactions,you, 2 does not apply. For mo iWa e interest paid,acquisition or abandonment of secured property, cancellation of debt, contributions to an individual retirement arrangement � and generally, payments other than interest and dividends,you are not required to sign the certification, but you Must provide your correct TW See,the Instructions for Part II later.r. ................ Sign 1i. .person of H n gre U.S.person 01�_:P?t�k2 Date 0 General Instructions -Form 1099 DIV(cfiviclendsi,_ii cluding those from stocks or mutual funds) Section references are to the Internal Revenue Code unless otherwise - Form 1099-MISC(various types of income,prizes,awards,or gross noted, proceeds) -Form 1099-8(stock or mutual fund sales and certain other transactions by Future developments. For the latest information about developments brokers) related to Form'W-9 and its instructions,Such as legislation enacted after o Form 1099-S(proceeds from real estate transactions) they were published, go to wwwfis.gov1Forr77W.9, * Form 1099-K(merchant card and third party network transactions) Purpose of Form * Form 1098(home mortgage interest), 1098-E(student loan interest), 1098-T(tuition) An individual or entity(Form W-9 requester)who is required to rile an o Form 1099-C(canceled debt) information return with the IRS must obtain your correct taxpayer identification number(TIN)which may be your social security number . Form 1099-A(acquisition or abandonment of secured property) (SSM),individual taxpayer identification numberMN), adoption taxpayer Use Form W-9 only if you are a U.S. person(including a resident alien), identification number(ATIN),or employer Identification number(EIN),to to provide your correct TIN, report on an information return the amount paid to you,or other amount reportable on an information return. Examples of information returns If you do not return Form W-9 to the requester with a 77N,you might be include, but are not limited to,the foliowing, subject to backup withhoOng. See What is backup w1thholding, later Form 1099-INT(interest earned or paid) Cat.No. 10231X Form W-9(Rev. 11-2017) ATTEST: Jeanne Donaldson,City Clerk Form W-9 Rev. 11-2017 Page 2 By signing the filled-out form,you: I.Certify that the TIN you are giving is correct(or you are waiting for You will not be subject to backup withholding on payments you receive a number to be issued), if you give the requester your correct TIN, make the proper certifications, 2. Certify that you are not subject to backup withholding,or and report all your taxable interest and dividends on your tax return. 3. Claim exemption from backup withholding if you are a U.S. exempt Payments you receive will be subject to backup withholding if: payee. If applicable, you are also certifying that as a U.S, person, your 1.You do not furnish your TIN to the requester, allocable share of any partnership income from a U.S, trade or business 2.You do not certify your TIN when required(see the Part II is not subject to the withholding tax on foreign partners' share of instructions on page 3 for details) effectively connected income,and 3.The IRS tells the requester that you furnished an incorrect TIN, 4. Certifythat FATCA codes entered on this form �f an indicatin 4.The IRS tells you that you are subject to backupwithholding ( ) ( y) g because you did not report all your interest and dividnds on your tax that you are exempt from the FATCA reporting, is correct. See What is return(far reportable interest and dividends only),or FATCA reporting,later,for further information. S.You do not certify to the requester that you are not subject to Note: If you are a U.S. person and a requester gives you a form other backup withholding under 4 above(for reportable interest and dividend than Form W-9 to request your TIN,you must use the requester's form if accounts opened after 1983 only). it is substantially similar to this Form W-9. Certain payees and payments are exempt from backup withholding. Definition of a U.S. person. For federal tax purposes, you are See Exempt payee code later,,and the separate Instructions for the considered a U.S. person if you are: Re nester of Form W-9 for more information. •An individual who is a U.S.citizen or U.S.resident alien; lso see Special rules for paCtne�hips,earlier. •A partnership,corporation,company,or association created or W at IS FATCA Reporting- orgganized in tie United States or under the laws of the United States; The Foreign Account Tax Compliance Act(FATCA)requires a participating •An estate(other than a foreign estate)); or foreign financial institution to report all United States account holders that A domestic trust(as defined in Regulations section 301.7701-7). are specified United States persons. Certain payees are exempt from Special rules for partnerships.Partnerships that conduct a trade or FATCA reporting. See Exemption from FATCA reporting code, later, and business r the United States are generally required to pay a withholding the I strpctions for the Requester of Form W-9 for more information. tax under taxable 1445 on any foreign partners' share of effectively .Rating Your Information connected taxable income from such business. Further, in certain cases You must provide updated information to any person to whom you where a Form W-9 has not been received, the rules under section 1446 claimed to be an exempt payee if you are no longer an exempt payee and require a partnership to presume that a partner is a foreign person, and anticipate receiving reportable payments in the future from this person. pay the section r in withholding tax.Therefore, if you are a U.S. person For example you may need to provide updated information if you are a C that is a partner in partnership conducting a trade s business in the corporation khat elects to be an S corporation or if yyou no longer are tax statusted States,provide.Form W-9 it the partnership is establish your U.S. exempt.In addition,you must furnish a new Form W-9 if the name or TIN status and avoid section 1446 withholding on your share of partnership changes for the account; for example, if the grantor of a grantor trust income. dies. In the cases below, the following person must give Form W-9 to the partnership for purposes of establishing its U.S. status and avoid€ng Penalties withholding on its allocable share of net income from the partnership Failure to furnish TIN. If you fail to furnish your correct TIN to a conducting a trade or business in the United States. requester,you are subject to a penalty of$50 for each such failure unless • In the case of a disregarded entity with aU.S, owner, the U.S. owner your failure is due to reasonable cause and not to willful neglect. of the disregarded entity and not the enti�y. Civil penalty for false information with respect to withholding. If • In the case of a grantor trust with a U.S:grantor or other U.S. owner you make a false statement with no reasonable basis that results in no generall , the U.S. grantor or other U.S. owner of the grantor trust and backup withholding,you are sub ect to a$500 penalty. not the trust; and Criminal enol for falsi in information. Willful) • In the case of a U.S. trust(other than a ggraptor trust) the U.S. trust p ty � 9 y falsifying other than a grantor trust)and not the bene�iciaries of the trust, certifications or affirmations may subject you to criminal penalties oreign person. If you are a foreign person or the U.S. branch of a including fines and/or imprisonment. foreign bank that has elected to be treated as a U.S. person,do not use Misuse of TINS. If the requester discloses or uses TINS in violation of Form W-9. Instead, use the appropriate Form W-8 or Form 8233 (see federal law,the requestor may be subject to civil and criminal penalties. Publication 515, Withholding of Tax on Nonresident Aliens and Foreign Specific Instructions Entities), Nonresident alien who becomes a resident alien.Generally,only a Line 1 nonresident alien individual may use the terms of a tax treaty to reduce You must enter one of the following on this line' do not leave this line or eliminate U.S. tax on certain types of income. However, most tax blank.The name should match the name on your fax return, treaties contain a provision known as a saving clause." Exceptions If this Form W-9 is for a joint accountbother than an account specified in the saving clause may permit an exemption from tax to maintained by a foreign financial institution (�FYYI)), list first, and then continue for certain typme of th es of income even after the payee has otherwise circle the nae person or entity whose number you entered in Part became a U.S.resident al€en far tax purposes. I of�orrn W-9. Ifyou are providing Form W-9 to an FFI to document a If you are a U.S. resident alien who is relying on an exception joint account, eacF� holder of the account that is a U.S. person must contained in the saving clause of a tax treaty to claim an exemption from provide a Form W-9. U.S. tax on certain types of income you must attach a statement to a. Individual. Generally, enter the name shown on our tax return. If Form W-9 that specifies the following rive items. ou have chap ed our last name without informing your 1.The treaty country. Generally this must be the same treaty under y �' g th Social Security which�you claimed exemption from Fax as a nonresident alien. Administration SSA of the name change, enter your first name, the last 2.The trea article addressing the income. name as shown on your social security card,and your new last name. 3.The article number(or location) in the tax treaty that contains the Note: ITIN applicant; Enter your individual name as it was entered on savinyq�lause and its exceptions. your Form W-7 application, line 1a.This should also be the same as the from tahe type and amount of income that qualifies for the exemption napnpjic you entered on the Form 1040/1040A/1040EZ you filed with your 5.Sufficient facts to justify the exemption from tax under the terms of b. Sole proprietoror singgle-member LLC. Enter your individual the treaty article. name as shown on your 1040jI040A/1040EZ on line 1. You may enter Exam p e. Article 20 of the U.S.-China income tax treaty allows an your business,trade,or"doing bbusiness as"(DBA)name on line 2. exemption from tax for scholarship income received by a Chinese student c. Partnership LLC that is not a single-member LLC, C temporarily present in the United States. Under U.S. law this student will corporation, or 9 corporation. Enter the entity's name as shown on become a resident alien for tax purposes if his or her siay in the United the entitys tax return on line 1 and any business,trade,or DBA name on States exceeds 5 calendaryeaated rs. However paragraph 2 of the first line 2. Protocol to the U.S.-China treaty (dd nl 30, 1984) allows the d. Other entities. Enter your name as shown on required U.S. federal provisions of Article 20 to continue to a ps even after the Chinese tax documents on line 1 This name should match the name shown on the student becomes a resident alien of the UnI edyStates.A Chinese student charter or other legal document creating the entity. You may enter any who qualifies for this exception (under paragraph 2 of the first protocol) business,trade or DBA name on line 2. and is relying on this exception to claim an exemption from tax on his or e. Disregarded entity. For U.S. federal tax purposes, an entity that is her scholarship or fellowship income would attach to Form W-9 a disregarded as an entity separate from its owner is treated as a statement that includes the information described above to support that disregarded entity."See Regulations section 301.7701-2(c)(2�(iii). Enter exemption. the owner's name on line 1. The name of the entity en ere on line 1 If you are a nonresident alien or a foreign entity, give the requester should never be a disregarded enti The name on line 1 should be the the appropriate completed Form W-8 or Form 8233, name shown on the income tax return on which the income should be l3clClCu WithhOldin reported. For example if a foreign LLC that is treated as a disregarded Backup entity for U.S. federal tax purposes has a single owner that is a U.S. What is backup withholding? Persons making certain payments to person,the U.S.owner's name is required to be provided on line 1.If the you must under certain conditions withhold and pay to the IRS 28% of direct owner of the entity is also a disregarded entity, enter the first such payments.This is called"backup withholdin .' Payments that may owner that is not disregarded for federal tax purposes. Enter the be subject to backup withholding include interes�, tax-exempt interest, disregarded entity's name on line 2, "Business nameldisregarded entity dividends, broker and barter exchange transactions, rents, royalties name." If the owner of the disregarded entity is a foreign person the nonemployee pay, payments made in settlement of payment card ana owner must complete an appropriate Form W-8 instead o�a Form X1+1-9. third party network transactions, and certain payments from fishing boat This is the case even if the foreign person has a U.S.TIN. operators. Real estate transactions are not subject to backup withholding. Form W-9 Rev. 11-2017 Page 3 Ine Ft e a ment is or... HEN the a ment is exem t far... If you have a business name, trade name, DBA name, or disregarded Interest and dividend payments All exempt payees except entity name,you may enter it on line 2. for 7 Line 3 Broker transactions Exempt payees I throng 4 and 6 Check the appropriate box in line 3 for the U.S. federal tax classification through 11 and all C corporations. of the person whose name is entered on line 1. Check only one box in S corporations must not enter an line 3. exempt pa ee code because they are exempt only for sales of AF e en i person on line c ec a ox or... noncovereri securities acquired is a n prior to 2012. •Corporation Corporation Barter exc ange transactions an Exemptpayees rang •Individual Individual/sole proprietor or single patronage dividends •Sole proprietorship,or member LLC •Single-member limited liability company(LLC)owned by an individual and disregarded for U.S. federal tax purposes. LLC treated as a partnership for Limited liability company and ente Payments over required to be Genera lyZexempt payees 1 U.S.federal tax purposes, the appropriate tax classification. reported and direct sales over through 5 • LLC that has filed Form 8832 or (P= Partnership, C= C corporation; $5,000, 2553 to be taxed as a corporation, or S=S corporation) Paymentsmade in se m een o Exempt payees 1 through 4 ar payment card or third party •LLC that is disregarded as an network transactions entity separate from its owner but See Form 1099-MISC,Miscellaneous Income,and its instructions. the owner is another LLC that is no disregarded for U.S.federal tax 'However, the following payments made to a corporation and reportable purposes. on Form 1099-MISC are not exempt from backup withholding: medical •Partnership Partnership and health care payments, attorneys' fees, gross proceeds paid to an attorney reportabie under section 6045(f), and-payments for services paid •Trust/estate Trust estate by a federal executive agency. Line 4, xemp Ions Exemption from FATCA reporting code.The following codes identify If you are exempt from backup withholding and/or FATCA reporting, payees that are exempt from reporting under FATCA.These codes apply enter in theappropriate s ace in line 4 an codes that may apply to o persons submitting this form for accounts maintained outside of the P Y ( ) Y PP Y United States by certain foreign financial institutions.Therefore if you are you. only submitting this form for an account you hold in the Uni{ed States, Exempt payee code. you may leave this field blank. Consult with the person requesting this • Generally, individuals (including sole proprietors) are not exempt from farm if you are uncertain if the financial institution is subject to these backup withholding. requirements. A requester ma indicate that appcode is not required by • Except as provided below, corporations are exempt from backup ind[caton)ywritt with printed on the line for a FAT ICA exemption code, codeimilar withholding for certain payments,including interest and dividends. P • Corporations are not exempt from backup withholding for payments A—An organization exempt from tax under section 501(a} or any P P p p Y individual retirement plan as defined isection in ssttr made in settlement of payment card or third pa s network transactions. B—The United States or any of its agencies orr in • Corporations are not exempt from backup withholding with respect to C—A state, the District of Columbia, a U.S. commonwealth or attorneys'fees or gross proceeds paid to attorneys, and corporations that possession,or any of their politica[subdivisions or instrumentalities provide medical or health care services are not exempt with respect to D--A corporation the stock of which is regularly traded on one or more payments reportable on Form 1099-MISC. established securities markets, as described in Regulations section The following codes identify payees that are exempt from backup 1.1472-1(c)(1)(i) appropriate code in the space in line 4. E—A corporation that is a member of the same expanded affiliated withholding.Enter the appropriate group as a corporation described in Regulations section 1.1472-1(c(1)(i) 1—An organization exempt from tax under section 501(a),any IRA,or �A dealer in securities commodities, or derivative f nancial a custodial account under section 403(b)(7) if the account satisfies the instruments(including notional principal contracts, futures, forwards, and requirements of section 401(f)(2) options)that is registered as such under the laws of the United States or 2-The United States or any of its agencies or instrumentalities any state 3—A state, the District of Columbia, a U.S. commonwealth or G—A real estate investment trust possession,or any of their political subdivisions or instrumentalities H—A regulated investment company as defined in section 851 or an 4—A foreign government or any of its political subdivisions, agencies, entity Act od1940a11 times during the tax year under the Investment or instrumentalities I—A common trust fund as defined in section 584(a) 5—A corporation J—A bank as defined in section 581 6—A dealer in securities or commodities required to register in the K—A broker United States, the District of Columbia, or a U.S. commonwealth or L—A trust exempt from tax under section 664 or described in section possession 4947(a (1) 7—A futures commission merchant registered with the Commodity plan— tax exempt trust under a section 403(b) plan or section 457(g) Futures Trading Commission Note: You may wish to consult with the financial institution requesting 8—A real estate investment trust this form to determine whether the FATCA code and/or exempt payee 9—An entity registered at all times during the tax year under the code should be completed. Investment Company Act of 1940 Line 5 10—A common trust fund operated by a bank under section 584(a) Enter your address(number street and apartment or suite number),This 11—A financial institution is where the requester of this Vorm W-9 will mail your information 12—A middleman known in the investment community as a nominee returns. I€this address differs from the one the requester already has on or custodian file, write NEW at the top. If a new address is provided, there is still a chance the old address will be used until the payor changes your address 13—A trust exempt from tax under section 664 or described in section 4947 in their records. The following chart shows types of payments that may be exempt Line 6 Enter your city,state,and ZIP code, from backup withholding.The chart applies to the exempt payees listed Part I.Taxpayer Identification Number(TIN) above, I through 13. Enter your TIN in the appropriate box.If you are a resident alien and you do not have and are not eligible to get an SSN your TIN is your IRS individual taxpayer identification number (ITIN). Inter it in the social security number box. If you do not have an ITIN, see How to get a 77N below. Form W-9 Rev. 11-2017 Page 4 If you are a sole proprietor and you have an EIN, you may enter either What Name and Number To Give the Re uester your 55N or EIN, or is e o account; ive name ano If you are a single member LLC that is disregarded as an entity 1. Individual The individual separate from its owner,enter the owner's SSN(or EIN, if the owner has 2. Two or more individuals[joint The actual owner of the account one). Do not enter the disregarded entity's EIN.If the LLC is classified as a corporation or partnership,enter the entity's EIN. account)other than an account in if combined funds,the first Note. See What Name and Number To Give the Requester, later, for maintained by an A individual on the account' further clarification of name and TIN combinations. 9 3• Two or more U.S.persons Dint Each holder of the account account maintained f m o Mow to get a TIN.If you do not have a TIN,apply for one immediately. 4. Custodian account of a minor The minor 2 To apply for an SSN, get Farm SS-5, Application for a Social Security (Uniform Giftto Minors Act) Card, from your local SSA office or get this form online at www55A.gov.. S. a.The usual revocable savings trust The grantor-trustee' You may also get this form by calling 1-800-772-1213. Use Form W-7, (grantor is also trustee) Application for IRS Individual Taxpayer Identification Number, to apply b.So-called trust account that is not a The actual owner for an ITIN, or Form SS-4, Application for Employer Identification legal or valid trust under state law Number, to apply for an EIN. You can apply for an EIN online by 6. Sale proprietorship or disregarded The owner' accessing the IRS website at wwwdi S.gou/8usinesses and clicking on entity owned by an individual Employer Identification Number (EIN) under Starting a Business. Go to 7. Grantor trust filing under Optional The grantor` www.irsgou/Forms to view, download, or print Form W-7 and/or Form Form 1099 Filing Method I(see SS-4. Or, you can go to wwwirsgovlOrderFormsto place an order and Regulation section 1.671- have Form W-7 and/or SS-4 mailed to you within 10 business days. 4 b 2 i A If you are asked to complete Form W-9 but do not have a TIN, apply For this and EIN of: a of account; Give name for a TIN and write"Applied For"in the space for the TTN,sign and date 8• For entity not owned by an The owner the form, and give it to the requester. For interest and dividend individual payments, and certain payments made with respect to readily tradable g A valid trust,estate,or pension trust Legal enti q instruments, generally you will have 60 days to get a TIN and give it to 10. Corporation or LLC electing corporateThe corporation the requester before you are subject to backup withholding on payments, status on Form 8832 or Form 2553 The 60-day rule does not apply to other types of payments. You will be 11. Association club 32 religious, The organization subject to backup withholding on all such payments until you provide Association, educational,a other tax g your TIN to the requester. charitaexempt organization Note: Entering"Applied For"means that you have already applied for a 12. Partnership or multi-member LLC The partnership TIN or that you intend to apply for one soon. 13. A broker or registered nominee The broker or nominee Caution: A disregarded U.S. entity that has a foreign owner must use 14. Account with the Department of The public entity the appropriate Form W-8. Agriculture in the name of a public entity(such as a state or local Part II. Certification government,school district,or To establish to the withholding agent that you are a U.S. person, or prison)that receives agricultural resident alien, sign Form W-9. You may be requested to sign by the program payments withholding agent even if items 1,4,or 5 below indicate otherwise. 15. Grantor trust filing under the Form The trust For a joint account, only the person whose TIN is shown in Part I 1041 Filing Method or the Optional should sign (when required). In the case of a disregarded entity, the Form 1099 Firing Method 2(see person identified on line 1 must sign. Exempt payees, see Exemptpayee Regulation section 1.671- code,earlier. 4 b 2 i B Signature requirements. Complete the certification as indicated in 'List first and circle the name of the person whose number you furnish. If items 1 through 5 below. 1.Interest,dividend,and barter exchange accounts opened only one person on a joint account has an SSN, that person's number before 1984 and broker accounts considered active during 1983. must be furnished. You must give your correct TIN,but you do not have to sign the ZCircle the minor's name and furnish the minor's SSN. certification. 3You must show your individual name and you may also enter your 2.Interest,dividend,broker,and barter exchange accounts business or DBA name on the"Business name/disregarded entity" name opened after 1983 and broker accounts considered inactive line. You may use either your SSN or EIN (if you have one), but the IRS durinapply.g1983.You must If you are subject t backup withhothe lding and yoon or u aremerely will List firsencourat aes nd Acle the u to use name oour f the trust,estate,or pension trust.(Do not providing your correct TIN to the requester,you must cross out item 2 in furnish the TIN of the personal representative or trustee unless the legal the certification before signing the form, entity itself is not designated in the account title.) Also see Special rules 3.Real estate transactions.You must sign the certification.You for partnerships,earlier. may cross out item 2 of the certification. *Note.Grantor also must provide a Form W-9 to trustee of trust. 4.Other payments.You must give your correct TIN,but you do not Note. If no name is circled when more than one name is listed, the have to sign the certification unless you have been notified that you have number will be considered to be that of the first name listed. previously given an incorrect TIN."Other payments"include payments Secure Your Tax Records from Identity Theft made in the course of the requester's trade or business for rents, Identity theft occurs when someone uses your personal information such royalties,goods(other than bills for merchandise),medical and health as your name, SSN, or other identifying information without our care services(including payments to corporations),payments to a permission, to commit fraud or other c�nes. An identity thief mayusenonemployee for services,payments made in settlement of payment card your SSN to get a job or may file a tax return using your SSN to receive a and third party network transactions,payments to certain fishing boat refund. fu crew members and fishermen,and gross proceeds paid to attorneys refu reduce your risk: (including payments to corporation . •Protect our SSN, 5. Mortgage interest paid b you,acquisition or abandonment y of secured roe Ensure your employer is protecting your SSN,and property,rty,cancellation of debt, BLE qualified tuition • Be careful when choosing a tax preparer. program payments(under section 529),ABLE accounts(under If your tax records are affected a identity theft and you receive a section 529A),IRA,Coverdell ESA,Archer MSA or MSA notice from the IRS, respond right away to the name and phone number contributions or distributions,and pension distributions.You printed on the IRS notice or letter. must give your correct TIN,but you do not have to sign the certification. Form W-9 Rev. 11-2017 Pae 5 If your tax records are not currently affected by identity theft but you Privacy Act Notice think you are at risk due to a lost or stolen purse or wallet, questionable credit card activity or credit report, contact the IRS Identity Theft Hotline Section 6109 of the Internal Revenue Code requires you to provide your at 1-800-908-4490 or submit Form 14039. correct TIN to persons(including federal agencies)who are required to For more information, see Pub. 5027, Identity Theft Information for Ole information returns with the IRS to report interest,dividends,or Taxpayers. certain other income paid to you;mortgage interest you paid;the Victims of identity theft who are experiencing economic harm or a acquisition or abandonment of secured property;the cancellation of debt; system problem, or are seeking help in resolving tax problems that have or contributions you made to an IRA,Archer MSA,or HSA.The person not been resolved through normal channels, may be eligible for Taxpayer collecting this form uses the information on the form to file information Advocate Service(TAS)assistance.You can reach TAS by calling the TAS returns with the IRS,reporting the above information. Routine uses of this toll-free case intake line at 1-877-777-4778 or TTY/TDD 1-800-829-4059. information include giving it to the Department of Justice for civil and Protect yourself from suspicious emails or phishing schemes. criminal litigation and to cities,states,the District of Columbia,and U.S. Phishing is the creation and use of email and websites designed to mimic commonwealths and possessions for use in administering their laws.The legitimate business emails and websites. The most common act is information also may be disclosed to other countries under a treaty,to sending an email to a user falsely claiming to be an established legitimate federal and state agencies to enforce civil and criminal laws,or to federal enterprise in an attempt to scam the user into surrendering private law enforcement and intelligence agencies to combat terrorism.You must information that will be used for identity theft. provide your TIN whether or not you are required to file a tax return. The IRS does not initiate contacts with taxpayers via emails. Also, the Under section 3406,payers must generally withhold a percentage of IRS does not request personal detailed information through email or ask taxable interest,dividend,and certain other payments to a payee who taxpayers for the PIN numbers, passwords, or similar secret access does not ' a TIN to the payer.Certain penalties may also apply for information for their credit card,bank,or other financial accounts. providing false or fraudulent information. If you receive an unsolicited email claiming to be from the IRS,forward this message to phishin_q@irs.gov.You may also report misuse of the IRS name, logo, or other IRS property to the Treasury Inspector General for Tax Administration (TIGTA) at 1-800-366-4484. You can forward suspicious emails to the f=ederal Trade Commission at spamr?auce.govor report them at wwwftc.gov/complaint. You can contact the FTC at www.&c.gou/idtheft or 877-IDTHEI 1' (877-438-4338), If you have been the victim of identity theft,see www.IdentltyTheft.gov and Pub.5027. Visit www.irsgov/Identity7heftto learn more about identity theft and how to reduce your risk. 3281 E Guasti Road,Suite 440 Ontario,CA 91761 Eimf A merican Ph-(909)510-6206 Title hisurance Compaity FAX-(877)461-2088 1�1, x , NATIONAA C,()PANIERCIAL 5EIRVICEs DATE: February 05, 2018 Escrow #: NCS-882726-ONT1 TO: Escrow Officer: Kelly Simoneau EXCHANGE INFORMATION We need the following information to process your escrow Please complete this form and return to our office: I/We request that First American Exchange Company contact us to discuss a 1031 Exchange. Or, I/we may also contact First American Exchange directly at (877) 317-1031 to discuss a Tax- Deferred Exchange. I/We will contact My Exchange Company listed below regarding a Tax-Deferred Exchange, I/We will ask them to contact you. Accomm,odator,: Exchange Officer: Exchange Number: Phone and Fax Number: E-Mail Address: Final Date to Exchange: I/We are certain that we will NOT be doing a 1031 Exchange Transaction for this property. I/'We hereby authorize you as Escrow Holder to discuss this file with my Exchange Company in order to process this escrow. V .4 7" 0 Name Paul W. Foster, Mayor Signature Phone Number 04N- 7S - Jeanne Donaldson, City Clerk Signature Phone Number PLEASE COMPLETE AND RETURN F' HD Commercial Property Disclosure Reports Disclosure Report Signature Page For SAN BERNARDINO County Property Address: 1267 W REDLANDS BLVD APN: 0169-351-04-0000 REDLANDS, SAN BERNARDINO COUNTY, CA 92373 Report Date: 12/0812017 ("Property") Report Nuimber: 2208782 Natural Hazard Disclosure ("NHD") Statement and Acknowledgment of Receipt DISCLAIMER: This NHO Summary (a) is not valid unless dellivered with the completelFANHO Disclosure Report which transferee must read and acknowledge before close of escrow,and(b)is subject to the Terms and Conditions contained in that complete Disclosure Report. The transferor and his or her agents) or a third-party consultant disclose the following information with the knowledge that even though this is not a warranty, prospective transferees may rely on this information in deciding whether and on what terms to purchase the Property. Transferor hereby authorizes any agent(s) representing any principal(s)in this action to provide a copy of this statement to any person or entity in connection with any actual or anfiripated sale of the Property. The following are representations made by the transferor and his or her agent(s)or a third-party Consultant based on their knowledge and maps drawn by the State. This informabon is a disclosure and is not intended to be part of any contract between the transferee and the transferor.THIS REAL PROPERTY LIES WITHIN THE FOLLOVVlNG HAZARDOUS AREA(S): A SPECIAL FLOOD HAZARD AREA(Any type Zone"A"or"V")designated by the Federal Emergency Management Agency Yes— No X Do not know and information not available from local jurisdiction AN AREA OF POTENTIAL FLOODING shown on a dam failure inundation trap pursuant to Section B589.5 of the Government Code. Yes— No X Do not know and information not available from local jurisdiction A VERY HIGH FIRE HAZARD SEVERITY ZONE pursuant to Section 5117B or 51179 of the Government Code, The owner of this Property is subject to the maintenance requirements of Section 511 B2 of the Government Code, Yes— No-X A WILDLAND AREA THAT MAY CONTAIN SUBSTANTIAL FOREST FIRE RISK AND HAZARDS pursuant to Section 4125 of the Public Resources Code. The owner of this Property is subject to the maintenance requirements of Section 4291 of the Public Resources Code Additionally, it is not the state's responsibility to provide fire protection services to any building or structure located within the wildlands unless the Department of Forestry and Fire Protection has entered into a cooperative agreement with a local agency for those purposes pursuant to Section 4142 of the Public Resources Code, Yes— No-X AN EARTHQUAKE FAULT ZONE pursuant to Section 2622 of the Public Resources Code. Yes— No-X A SEISMIC HAZARD ZONE pursuant to Section 2696 of the Public Resources Code. Yes(Landslide Zone)® Yes(Liquefaction Zone)_ No, Map not yet released by state X THESE HAZARDS MAY LIMIT YOUR ABILITY TO DEVELOP THE REAL PROPERTY, TO OBTAIN INSURANCE, OR TO RECEIVE ASSISTANCE AFTER A DISASTER. THE MAPS ON WHICH THESE DISCLOSURES ARE BASED ESTIMATE WHERE NATURAL HAZARDS EXIST THEY ARE NOT DEFINITIVE INDICATORS OF WHETHER OR NOT A PROPERTY WILL BE AFFECTED BY A NATURAL DISASTER,TRANSFEREE($)AND TRANSFERORS)MAY WISH TO OBTAIN PROFESSIONAL ADVICE REGARDING THOSE HAZARDS AND OTHER HAZARDS THAT MAY AFFECT THE PROPERTY. Signature of Transf;r6r(s) 5—ate Signature of Transferor(s) at— Signature ofAgentDate Signature of Agent 5—ate , Transferar(s)and their agent(s)represent that the information herein is true and correct to the best of their knowledge as of the date signed by the transferor(s) and agent(s). Transferar(s)and their agent(s)acknowledge that they have exercised good faith in the selection of a third-party report provider as required in Civil Code Section 1103.7, and that the representations made in this Natural Hazard Disclosure Statement are based upon information provided by the independent third-party disclosure provider as a substituted disclosure pursuant to Civil Code Section 1103.4. Neither transferor(s)nor their agent(s)(1)has independently verified the information contained in this statement and Report or(2)is personally aware of any errors or inaccuracies in the information contained on the statement. This statement was prepared by the provider below Third-Party Disclosure Provider(s)FIRSTAMIERICAN PROFESSIONAL REAL ESTATE SERVICES INC.OPERATING THROUGH ITS FANHD DIVISION. Date 013 December 2017 Transferee represents that he or she has reaut„And understands this document. Pursuant to Civil Code Section 1103.13, the representations in this NaLiTal Hazard D�SG�Ure Statemenk�o tit �e transferor's or agent's disclosure obligations in this transaction. Signature of Transferees Da Signature or I ransteree(s) Date ' TRANSFEREEM)REPRESENTS ABOVE HEISHE HAS RECEIVED A.Commercial Natural Hazard Disclosure Report, B.Additional Property-specific Statutory Disclosures: Former Military Ordnance Site,Airport Influence Area, Airport Noise, San Francisco Bay Conservation and Development District Jurisdiction(in S.F.Bay counties only) C,Additional County and City Regulatory Determinations as applicable: Airports,Avalanche, Blow Sand,Coastal Zone, Dam/Levee Failure Inundation, Debris Flow, Erosion, Flood, Fault Zone, Fire,Groundwater, Landslide, Liquefaction, Methane Gas, Mines, Naturally Occurring Asbestos,Redevelopment Area, Right to Farm, Runoff Area,Seiche,Seismic Shaking,Seismic Ground Failure,Slope Stability,Soil Stability,Subsidence,TRPA,Tsunami. D.General advisoriesMethamphetamine Contamination, Mold, Radon, Endangered Species Act,Abandoned Mines,Oil&Gas Wells,Tsunami Maps(coastal only), Non-residential Building Energy Use. E.Government Guides in Combined Booklet with Report. Refer to Booklet Commercial Property Owner's Guide to Earthquake Safety. Government Guides are also available on the Company's"Electronic Bookshelf at Lit1p1twwww.r.L c a, , c @2017-FirstAirprican Piofessionai Real EMale Sewices,h1C.-20DCoinrne[r;p Su�ta 100E iivire,CA1')Xi02 Phone,{800�527-0027 Fax:(800),854-9625 F> HD Commercial Property Disclosure Report Map of Statutory Natural Hazards j' For SAN BERNARDINO County Property Address: 1267 W REDLAND S BLVD ARNW 0169�-3 511-a4-0000 REDLANDS, SAN BERNARDINO COUNTY, CA 92373 Report Date: 12/08/2017 ""Property„) Report Number: 2268782 'R4,L PARJIAve .w a 4 �D w �4 w tVo � k , �:. '�, +yw ♦ h. ,,^, "� y� Irv„. �, °��, , , , � �, �,`,,gym +•\� 'h,,"`h W,'M� . � �� \`,�k .,, '+•.'+i"�i4 „"ww� `.`y l� u,'w„ w,""MM"�y4\". '"lv'\,1t�' Subject Property EM Special Flood Hazard Area Area of Potential Flooding,Ciera Failure 3 0.125 0 215 Very High Fire Hazard Severity Zone: .,.,...,..- ,. WiIdland Area,Substantial Fore-.1 Fare RiskEarthquake Faeilt Zone mite Seismic Hazard Zone,LawA lide This map is provided for convenience only to show the approximate location of the Property and is not based on a field survey, Seismic Hazard,Zone,LigUefaJtion This COMMERCIAL.PROPERTY DISCLOSURE(REPORT contains THIS REPORT PROVIDES THE STATUTORY DISCLOSURES MANDATED BY CALIFORNIA LAWS SPECIFIED HEREIN AND DELIVERY OF THIS REPORT AND THE EXECUTED STATUTORY FORD IS SUFFICIENT TO MEET THE SAFE HARBOR FOR THE SELLER AND SELLER'S AGENT. THIS REPORT ALSO CONTAINS OTHER IMPORTANT DISCLOSURES AND (INFORMATION. SELLER AND SELLER'S AGENT MAY HAVE ADDITIONAL RESPONSIBLITIES FOR CERTAIN DISCLOSURES WITHINTHEIR ACTUAL KNOWLEDGE, @2017-h'iirst Aiooedp to Professionaf Real EMate Services Inca 200 Ewur coerce, S01e ILIa,IlundjoeE:,I.„A 92602 Phone:0800)527-00 27 Fran,(800)854-9625uw�.� Fuge 1 of 20 FANHD Commercial Property (Disclosure Reports The Natural Hazard Disclosure Report For SAN BERNARDINO County Property Address: 1267 W REDLANDS BLVD /SRN: 0169-351-04-(1000 REDLANDS, SAN BERNARDfNO COUNTY, 'CA 92373 Report Date: 12/08/2017 ("Property") Report Number: 2208782 Natural Hazard Disclosure ("NHD") Statement and Acknowledgment of Receipt The transferor and his or her agents) or a third-party consultant disclose the following information with the knowledge that even though this is riot a warranty, prospective transferees may rely on this information in deciding whether and on what terms to purchase the Property. Transferor hereby authorizes any ogent(s) representing any principal(s)in this action to provide a copy of this statement to any person or entity in connection with any actual or anticipated sale of the Property. The following are representations made by the transferor and his or her agents)or a third-party consultant based on their knowledge and maps drawn by the State. This information is a disclosure and is not intended to be part of any contract between the transferee and the transferor,THIS REAL PROPERTY LIES WITHIN THE FOLLOWING HAZARDOUS AREA(S): A SPECIAL FLOOD HAZARD AREA(Any type Zone"A"or"V")designated by the Federal Emergency Management Agency Yes- No X Do not know and information not available from local jurisdiction AN AREA OF POTENTIAL FLOODING shown on a dam failure inundation map pursuant to Section 6589.5 of the Government Code. Yes— No, Do not know and information not available from local jurisdiction_ A VERY HIGH FIRE HAZARD SEVERITY ZONE pursuant to Section 51178 or 51179 of the Government Code. The owner of this Property is subject to the maintenance requirements of Section 51182 of the Government Code. Yes—, No-X A WILDLAND AREA THAT MAY CONTAIN SUBSTANTIAL FOREST FIRE RISK AND HAZARDS pursuant to Section 4125 of the Public Resources Code, The owner of this Property is subject to the maintenance requirements of Section 4291 of the Public Resources Code,Additionally, it is not the state's responsibility to provide fire protection services to any building or structure located within the wildlands unless the Department of Forestry and Fire Protection has entered into a cooperative agreement with a local agency for those purposes pursuant to Section 4142 of the Public Resources Code. Yes— No X AN EARTHQUAKE FAULT ZONE pursuant to Section 2622 of the Public Resources Code, Yes— No X A SEISMIC HAZARD ZONE pursuant to Section 2696 of the Public Resources Code, Yes(Landslide Zone) Yes(Liquefaction Zone)_ No— Map not yet released by state X THESE HAZARDS MAY LIMIT YOUR ABILITY TO DEVELOP THE REAL PROPERTY, TO OBTAIN INSURANCE, OR TO RECEIVE ASSISTANCE AFTER A DISASTER. THE MAPS ON WHICH THESE DISCLOSURES ARE BASED ESTIMATE WHERE NATURAL HAZARDS EXIST., THEY ARE NOT DEFINITIVE INDICATORS OF WHETHER OR NOT A PROPERTY WILL BE AFFECTED BY A NATURAL DISASTER,TRANSFEREE(S)AND TRANSFEROR(S)MAY WISH TO OBTAIN PROFESSIONAL ADVICE REGARDING THOSE HAZARDS AND OTHER HAZARDS THAT MAY AFFECT THE PROPERTY. Signatureof—Transferor(s) 5—ate Signature of Transferor(s) 5—ate Signature of Agent Date Signature of Agent Date Transferor(s)and their agents)represent that the information herein is true and correct to the best of their knowledge as of the date signed by the transteror(s) and agent(s). Transferor(s)and their agent(s)acknowledge that they have exercised good faith in the selection of a third-party report provider as required in Civil Code Section 1103.7, and that the representations made in this Natural Hazard Disclosure Statement are based upon information provided by the Independent third-party disclosure provider as a Substituted disclosure pursuant to Civil Code Section 1103.4.Neither transferor(s)nor their agents)(1)has independently verified the information contained in this statement and Report or(2)is personally aware of any errors or inaccuracies in the information contained on the statement.This statement was prepared by the provider below: Third-Party Disclosure Provider(s)FIRST AMERICAN PROFESSIONAL REAL ESTATE SERVICES INC OPERATING THROUGH ITS FANHD DIVISION. Date 08 December 2017 Transferee represents that 4hke has read and understands this document. Pursuant to Civil Code Section 1103.8, the representations in this Natural Hazard at. t 3 D' Ii emept do i t c t I,of the transferees or a it's di at obligations in this transaction. closure Sibrmlib?i Te fereei Mte 0 --- Signature of Transferee(s) 5—ate TRANSFEREES A.Commercial Natural Hazard Disclosure Report. B.Additional Property-specific Statutory Disclosures: Former Military Ordnance Site,,Airport Influence Area, Airport Noise,, San Francisco Bay Conservation and Development Distilict Jurisdiction(in S.F.Bay counties only). C.Additional County and City Regulatory Determinations as applicable: Airports,Avalanche, Blow Sand, Coastal Zone, Darn/Levee Failure Inundation, Debris Flow, Erosion, Flood, Fault Zone, Fire, Groundwater, Landslide, Liquefaction, Methane Gas, Mines, Naturally Occurring Asbestos,Redevelopment Area, Right to Farm, Runoff Area,Seiche,Seismic Shaking,Seismic Ground Failure,Slope Stability,Soil Stability,Subsidence,TRP&Tsunami. D.General advisories: Methamphetamine Contamination,Mold, Radon, Endangered Species Act,Abandoned Mines,Oil&Gas Wells, Tsunami Maps(coastal only), Non-residential Building Energy Use. E.Government Guides in Combined Bucket with Report. Refer to Booklet:Commercial Property Owner's Guide to Earthquake Safety, Government Guides are also available on the Company's"Electronic Bookshelf'at hitp/MAYyLAL.disicIosLtgs.cicnl. t2011 7-First Ainerrican Prcfcs5ioraP Real Estate;.ervices Inc 200 CwllnlerCe Sure 100 Inine r.,A 92602 Phoiqe (8001)527-0027 Fax(800)854-9625 Page 2 of 20 FA h9 Commercial Property Disclosure Reports �I res'A--nary The Natural Hazard Disclosure Report N,,o,.1 For SAN BERNARDINO County Property Address: 1267 W REDLANDS BLVD APP: 0169-351-04-0000 REDLANDS, SAN BERNARDINO COUNTY, CA 92373 Report Date: 12/0812017 ("Property") Report Number: 2208782 Table of Contents Map of Statutory Natural Hazards........................ ...... ........ ....... Statutory NHC Statement and Acknowledgment of Receipt.... ............ —2 Table of Contents.................... —3 Summary of Disclosure Determinations—.......................... ...... ....... ...... ........... ........ 4- NHDN Report....................... ........ ......—.......--.......... ...... .......... ........ ---....... .... 5-18 Termsand Conditions.... ...... ......... .............. ......................—............... ..........- 19-20 (02017.Rrst American rlrofes;�anal Retic Estate Services,Inc.-no Cwmnerce,`rude 100 he rio,CA�2602 Phare (800)1527-0027 Fax:(800)854-9625 Page 3 of 20 FA Hl Commercial Property Disclosure Reports The, Natural Hazard Disclosure Report Ma—M—d Dia, For SAN BERNARDINO County Property ,address: 1287 W REDLANDS BLVD APN: 0189-351-04-0000 REDLANDS, SAID BE NAP,DINO COUNTY, CA 92373 Report Clete: 12/08/2017 ("Property") Report Number: 2208782 PROPERTY DISCLOSURE SUMMARY ® READ FULL REPORT statutoHHD�elterfmination^a NOT flap �ptr �Nt IN _ IN Nd14": Property Is: page: Flood X NOT IN a Special Flood Hazard Area.The property is IN a FSM,4-designated Flood Zone(s)X. Clam X NOT IN an area of potential dam inundation. 5 Very Htgh Fire Hazard Severity X NOT IN a very high fare hazard severity zone. 5 Wildland Fire Area X NOT IN a state responsibility area. 6 Fault X NOT IN an earthquake fault zone designated pursuant to the 7 Alquist-Priolo Act. Landsllde X Map Not Available 7 Liquefaction X Map Not Available 7 NNo NOT Map Report County-level fw HD Determinations IN NIA' <Property is: page: Liquefaction X NOT IN an area of liquefaction susceptibility J Fault X NOT WITHIN a designated or adopted fault zone. 9 Landslide X NOT IN a mapped Landslide rJ Fire X NOT IN e designated Fire Safety Area. g Flood X Map Not Available 10 Landslide Susceptlblity X IN a mapped area of low landslide susceptibility. g NHD Rep ,Additional Statutory Dis,'clt�iures Ilk. IN NIA*p � Property�iea � page Former Military Ordnance X NOT WITHIN one male of a formedy used ordnance site. 12 Airport Influence Area X NOT IN an airport influence area. 13 Airport Noise Area for 65 Decibel X NOT IN a delineated 65 dR CNFL or greater aviation noise zone, 14 Nl Report eneraui dvi aaole Description page. _ . . Methamphetamine Contamination Provides an advisory that e disclosure may be required pursuant to the"Methamphetarnine xL5 Contaminated Property Cleanup Act of 2005", Mold Provides an advasory that all prospective purchasers of residential and commercial property 16 should thoroughly inspect the subyect property for mold and sources dor additional in on the origins of and the damage caused by mold. Radon Provides an advisory on the risk associated with Radon gas concentrations. 17 Endangered Species Provides an advisory on resources to educate the public on locales of endangered or 17 threatened species, Abandoned Mines Provides an advisory on resources to educate the public oil the hazards posed by,and some 118 of the general locales of,abandoned mines. Oil and Gas Wells Provides an advisory on the potential existence of oil and gas wells and sources for additional 18 general and/or specific information, Determined by First American Professional Real Estate Services,the. For more detained information as to the foregoing determinations,please read this entire Report. 4�of (e,)2017 First American Prcalessi n at Real Estate Sewlc;es Mc,-200 Coin mane Sune 100,Ihvii CA 92602 Phone:(flt)tb)tr17 7t)� Fav(i'�810t 854-%25� Page N FAQ HSI Commercial Property Disclosure Reports FidA-H- The Natural' Haz,ard Disclosure Report For SAN BERNARDINO County Property Address., 1267 VV REDLANDS BLVD APN: 0169-351-04-0000 REDLANDS, SAN BERNARDINO COUNTY, CA 92373 Report Date. 12/08/2017 ("Property") Report Number: 2208782 Natural Hazard Disclosure Report Part 1. State Defined Natural Hazard Zones Statutory Natural Hazard Disclosures Section 1103 of the California Civil Code mandates the disclosure of six (6) natural hazard zones, if the Property is located within any such zone. Those six "statutory" hazard zones, disclosed on the Natural Hazard Disclosure Statement ("NHDS")on Page one of this Report, are explained below. Note that the NFIDS does not provide for informing buyers if a property is only partially within any of the delineated zones or provide additional flood zone information which could be very important to the process. The following summary is intended to give buyers additional information they may need to help them in the decision-making process and to place the information in perspective, SPECIAL FLOOD HAZARD AREA DISCUSSION- Property in a Special Flood Hazard Area (any type of Zone "A" or W"as designated by the Federal Emergency Management Agency ("FEMA") is subject to flooding in a 100-year rainstorm." Federally connected lenders require homeowners to maintain flood insurance for buildings in these zones. A 100-year flood occurs on average once every 100 years, but may not occur in 1,000 years or may occur in Successive years. According to FEMA, a home located within a SFHA has a 26% chance of suffering flood damage during the term of a 30-year mortgage. Other types of flooding, such as dam failure, are not considered in developing these zones. Flood insurance for properties in Zones 13, C, D, X, X500, and X500—Levee is available but is not required, Zones A,AO,AE,AH,AR,All-A30:Area of 100-year"flooding-a 1%or greater chance of annual flooding, Zone A99: An "adequate progress" determination for flood control system construction projects that, once completed, may significantly limit the area of a community that will be included in the Special Flood Hazard Area (SFHA), Such projects reduce but do not eliminate, the risk of flooding to people and structures in "levee-impacted" areas, and allow mandatory flood insurance to be available at a lower cost. Zones V,V1-W30:Area of"100-year"flooding in coastal (shore front)areas subject to wave action. Zone B:Area of moderate flood risk. These are areas between the"100"and"500"year flood-risk levels, Zones C, D: NOT IN an area of"100-year"flooding.Area of minimal(Zone C)or undetermined(Zone D)flood hazard, Zones X: An area of minimal flood risk. These are areas outside the"500"year flood-risk level. Zone X500: An area of moderate flood risk. These are areas between the"100"and"500"year flood-risk levels. Zone X5001—LEVEE: An area of moderate flood risk that is protected from "I 00-year flood"by levee and that is subject to revision to high risk(Zone A)if levee is decertified by FEMA, Zone N: Area Not Included, no flood zone designation, has been assigned or not participating in the National Flood Insurance Program. Notice: The Company is not always able to determine if the Property is subject to a FEMA Letter of Map Revision ("LOMR") or other FEMA letters of map change. If Seller is aware that the Property is subject to a LOMR or other letters of map change, the Seller shall disclose the map change and attach a copy of the FEMA letter(s)to the Report. Contact FEMA at littp,/�//mSs(qjerna.cLgv for additional information. For more information about flood zones, visit: jjtjg:l! floodsn2gr i_qov1floods1D niEc�flaod isks.i_qp PUBLIC RECORD: Official Flood Insurance Rate Maps ("FIRM") compiled and issued by the Federal Emergency Management Agency("FEMA")pursuant to 42 United States Code§40101,et seq. AREA OF POTENTIAL FLOODING (DAM FAILURE) DISCUSSION: LocaI governmental agencies, utilities, and owners of certain dams are required to prepare and submit inundation maps for review and approval by the California Office of Emergency Services ("OES"), A property within an Area of Potential Flooding Caused by Dam Failure is subject to potential flooding in the event of a sudden and total dam failure with a full reservoir. Such a failure could result in property damage and/or personal injury. However, dams rarely fail instantaneously and reservoirs are not always filled to capacity. Please note that not all dams (such as federally controlled dams) located within the state have been included within these dam inundation zones. Also these maps do not identify areas of potential flooding resulting from storms or other causes. PUBLIC RECORD: Official dam inundation maps or digital data thereof made publicly ava4able by the State of California Office of Emergency Services ("OES") pursuant to California Government Code§8589.5, @2017.FjTstAine,,iicBaur Red Estadr:Services,Inc.-SiCjo CweJJJJPria . S[Ifte 100,lyrVine,CA92602 Phojie:(800)527-0027 Far(800)8549625 Page5,of 20 FA IIID Commercial Property Disclosure Reports The Natural Hazard Disclosure Report For SAN BERNARDINO County Property Address: 1267 W REDLANDS BLVD APP: 0169-351-04-0000 REDLANDS, SAN BERNARDINO COUNTY, CA 92373 Report Date: 12/08/2017 ("Property") Report Number: 2208782 VERY HIGH FIRE HAZARD SEVERITY ZONE (VHFHSZ) DISCUSSION: VHFHSZs can be defined by the California Department of Forestry and Fire Protection ("Calfire")as well as by local fire authorities within, "Local Responsibility Areas" where fire suppression is the responsibility of a local fire department. Properties located within VHFHS Zones may have a higher risk for fire damage and, therefore, may be subject to (i) additional construction requirements such as a "Class A" roof for new construction or replacement of existing roofs- and (ii) additional maintenance responsibilities Such as adequate vegetation clearance near the structure, spark screenson chimneys and stovepipes, leaf removal from roofs, and other basic fire-safety practices. Contact the local fire department for a complete list of requirements and exceptions. PUBLIC RECORD: Maps issued by Calfire Pursuant to California Government Code § 51178 recommending VHFHSZs to be adopted by the local jurisdiction within its Local Responsibility Area, or VHFHSZs adopted by the local jurisdiction within the statutory 120-day period defined in California Government Code§51179. WILDLAND FIRE AREA (STATE RESPONSIBILITY AREA) DISCUSSION: The State Board of Forestry classifies all lands within the State of California based on various factors such as ground cover, beneficial use of water from watersheds, probable damage from erosion, and fire risks. Fire prevention and suppression in all areas which are not within a Wildland - State Responsibility Area ("WSRA") is primarily the responsibility of the local or federal agencies, as applicable. For property located within a WSRA, please note that (1) there may be substantial forest fire risks and hazards; (2) except for property located within a county which has assumed responsibility for prevention and suppression of all fires, it is NOT thestate's responsibility to provide fire protection services to any building or structure located within a WSRA unless the Department has entered into a cooperative agreement with a local agency; and (3) the property owner may be is subject to (i) additional construction requirements such as a "Class A" roof for new construction or replacement of existing roofs-' and (ii) additional maintenance responsibilities such as adequate vegetation clearance near the structure, spark screenson chimneys and stovepipes, leaf removal from roofs, and other basic fire-safety practices. The existence of local agreements for fire service is not available in the Public Record and, therefore, is not included in this disclosure. For very isolated properties with no local fire services or only seasonal fire services there may be significant fire risk. If the Property is located within a WSRA, please,contact the local fire department for more detailed information. PUBLIC RECORD: Official maps issued by the California Department of Forestry and Fire Protection ("Calfire") pursuant to California Public Resources Code§4125. SRA Fire Prevention Benefit Fee Advisory In 2011, the California Legislature and Governor enacted a "Fire Prevention Fee" on habitable structures in the State's wildland fire responsibility area. The yearly fee, levied on property owners, paid for various activities to prevent and suppress wildfires in the SRA,and was most recently at the rate of$152,33 per habitable structure on the property. Effective July 1, 2017, as authorized by Assembly Bill 398 and signed by the Governor, that fire Prevention fee is suspended until 203,1. For more information, please refer to "Part 6. State Responsibility Area Fire Prevention Fee"in the FANHD Property Tax Report. (c017F4sl Aineftan Professional Real Fs ate Serkes,inc..200 Cunn1,nrj(6'SUJU?10) IMne CA 92602 Phone0800)527-0027 Fax,(8 Cly 854-9625 Page 6 of 20 I ow,� I=A HD Commercial Property Disclosure Reports *'l ��� 'The Natural Hazard Disclosure Report y For SAN NO Count Property Address. 1267 W REDLANDS BLVD AP I: 0169-351-04-0,000 REDLANDS, SAN BERNARDINO COUNTY, CA 92373 Report Date: 12/08/2017 ("Property") Report Number: 2208782 EARTHQUAKE FAULT ZONE DISCUSSION. Earthquake Fault Zones are delineated and adopted by California as part of the Alquist-Pnolo Earthquake Fault Zone Act of 1972. Property in an Earthquake Fault Zone ("EF Zone") does not necessarily have a fault trace existing on the site. EF Zones are areas or bands delineated on both sides of known active earthquake faults, EF Zones vary in width but average one-quarter(1/4) mile in width with the "typical"zone boundaries set back approximately 660 feet on either side of the fault trace. The potential for "fault rupture" damage (ground cracking along the fault trace) is relatively high only if a structure is located directly on a fault trace. If a structure is not on a fault trace, shaking will be the primary effect of an earthquake. During a magor earthquake, shaking will be strong in the vicinity of the fault and may be strong at some distance frorn the fault depending on soil and bedrock conditions. It is generally accepted that properly constructed wood-frame houses are resistant to shaking damage. PUBLIC RECORD: Official earthquake fault zone or special study zone maps approved by the State Geologist and issued by the California Department of Conservation, California Geological Survey pursuant to California Public Resources Code§2622. SEISMIC HAZARD MAPPING ACT ZONE DISCUSSION: Official Seismic Hazard Zone ("SH Zone")maps delineate Areas of Potential Liquefaction and Areas of Earthquake-induced Lanclsficling, A property that lies partially or entirely within a designated SH Zone may be subject to requirements for site-specific geologic studies and mitigation before any new or additional construction may take place. Earthquake-Induced Landslide Hazard Zones are areas where the potential for earthquake-induced landslides is relatively high, Areas most susceptible to these landslides are steep Mopes in poorly cemented or highly fractured rocks, areas underlain by loose, weak soils, and areas on or adjacent to existing landslide deposits. The CGS cautions these maps do not capture all potential earthquake-induced landslide hazards and: that earthquake-induced ground failures are not addressed by these maps. Furthermore, no effort has been made to map potential run-out areas of triggered landslides. It is possible that such run-out areas may extend beyond the zone boundaries. An earthquake capable of causing liquefaction or triggering a landslide may not uniformly affect all areas within a SH Zone. Liquefaction; Hazard Zones are areas where there is a potential for, or an historic occurrence of liquefaction. Liquefaction is a soil phenomenon that can occur when loose, water saturated granular sediment within 40 feet of the ground surface, are shaken in a significant earthquake. The soil temporarily becomes liquid-like and structures may settie unevenly. The Public Record is intended to identify areas with a relatively high potential for liquefaction but not to predict the amount or direction of liquefaction- related: ground displacement, nor the amount of damage caused by liquefaction.. The many factors that control ground failure resulting from liquefaction must be evaluated on a site specific basis. PUBLIC RECORD: Official seismic hazard maps or digital data thereof approved by the State Geologist and issued by the California Department of Conservation, California Geological Survey pursuant to California Public Resources Code§2696. STATUTORY NATURAL HAZARD DISCLOSURE REPORTING STANDARD: "IN"shall be reported if any portion of the Property is located within any of the above zones as delineated in the Public Record, "NOT IN" shall be reported if no portion of the Property is located within any of the above zones as delineated in the Public Record'. Map Not Available shall be reported in areas not yet evaluated by the governing agency according to the Public Record, Please note that "MAP NOTAVAILABLE"will be applicable to most portions of the state, Official Seismic Hazard Zone ("SH Zone") maps delineate Areas of Potential Liquefaction and Areas of Earthquake-induced Landsliding, (r,)2017-FkMAmerican Professianal Real EstE�teSerke,,,,Inc.-200Commerce h" io,GA92602 Phone:(1300)527 002p Fax�t800)854-9625 Page 7 of 20 FANHD Commercial Property Disclosure Reports The Natural Hazard Disclosure Report For SAN BERNARDINO County Property Address: 1267 W REDLANDS BLVD APN: 0169-351-04-0000 REDLANDS, SAN BERNARDINO COUNTY, CA 92373 Report Date: 12/08/2017 ("Property") Report Number: 2208782 Part 2. County and City Defined Natural Hazard Zones HAZARD MAPS IN THE LOCAL GENERAL PLAN General Plan regulates property development,. There are currently over 530 incorporated cities and counties in California. The state Government Code (Sections 65000 et seq.) requires each of those jurisdictions to adopt a comprehensive, long-term "General Plan"for its phys�cal development, That General Plan regulates land uses within the local jurisdiction in order to protect the public from hazards in the environment and conserve local natural resources, The General Plan is the official city or county policy regarding the location of housing, business, industry, roads, parks, and other land uses. Municipal hazard zones can affect the cost of ownership. Each county and city adopts its own distinct General Plan according to that jurisdiction's unique vegetation, landscape, terrain, and other geographic and geologic conditions. The "Safety Element"(or Setismic Safety Element) of that General Plan identifies the constraints of earthquake fault, landslide, flood, fire and other natural hazards on local land use, and it delineates hazard zones within which private property improvements may be regulated through the building-permit approval process, which can affect the future cost of ownership.Those locally regulated hazard zones are in addition to the federal and state defined hazard zones associated with statutory disclosures in the preceding section. City and/or County natural hazard zones explained below. Unless otherwise specified, only those officially adopted Safety Element or Seismic Safety Element maps (or digital data thereof) which are publicly available, are of a scale, resolution, and quality that readily enable parcel-specific hazard determinations, and are consistent in character with those statutory federal or state disclosures will be considered for eligible for use as the basis for county- or city-level disclosures set forth in this Report. Please also note: • If an officially adopted Safety Element or Seismic Safety Element map relies on data which is redundant of that used for state- level disclosures, this Report will indicate so and advise Report recipients to refer to the state-level hazard discussion section for more information. • If an officially adopted Safety Element or Seismic Safety Element cites underlying maps created by another agency, those maps may be regarded as incorporated by reference and may be used as the basis for parcel-specific determinations if those maps meet the criteria set forth in this section. • Because county- and city-level maps are developed independently and do not necessarily define or delineate a given hazard the same way,the boundaries for the"same"hazard may be different. If one or more maps contained in the Safety Element and/or Seismic Safety Element of an officially adopted General Plan are used as the basis for local disclosure,those maps will appear Linder the"Public Record(s)Searched"for that county or city. REPORTING STANDARDS A good faith effort has been made to disclose all hazard features on pertinent Safety Element and Seismic Safety Element maps with well-defined boundaries: however, those hazards with boundaries that are not delineated will be deemed not suitable for parcel-specific hazard determinations. Some map features, such as lines drawn to represent the location of a fault trace, may be buffered to, create a zone to facilitate disclosure. Those map features which can not be readily distinguished from those representing hazards may be included to prevent an emission of a hazard feature. If the width of a hazard zone boundary m in question, "IN"will be reported if that boundary impacts any portion of a property. Further explanations concerning specific map features peculiar to a given county or city will appear Linder the"Reporting Standards"for that jurisdiction. PUBLIC RECORDS VS.ON-SITE EVALUATIONS Mapped hazard zones represent evaluations Of generalized hazard information. Any spedfic site wothin a mapped zone could be at less or more relative risk than is indicated by the zone designation. A site-specific evaluation conducted by a geotechnical consultant or other qualified professional may provide more detailed and definitive information about the Property and any conditions which may or do affect it. PROPERTY USE AND PERMITTING No maps beyond those identified as "'Public Record(s)"have been consulted for the purpose of these local disclosures. These disclosures are intended solely to make Report recipient(s) aware of the presence of mapped hazards. For this reason -- and because local authorities may use on these or additional rnaps or data differently to determine property-specific land use and permitting approvals -- Report recipients are advised to contact the appropriate local agency, Usually Community Development, Planning, and/or Building, prior to the transaction to ascertain if these or any other conditions or related regulations may impact the Property use or improvement, @2017-First Arn(necan ProfessionalReal Estate Ser,4r.,,es,ki(;. 100,IrvIne CA 92602 Phone (800)527-0027 Fax:(800)854-9625 Page 8 of 20 FAHD Commercial Property Disclosure Reports A""'k- The Natural Hazard Disclosure Re ort FV r lb—d D�s,b, P For SAN BERNARDINO County Property Address: 1267 W REDLANDS BLVD APIN. 0169-351-04-0000 REDLANDS, SAN BERNARDINO COUNTY, CA 92373 Report Date: 12/08/2017 ("Property") Report Number: 2208782 SAN BERNARDINO COUNTY OVERLAY ZONES DISCUSSION PUBLIC RECORD(S) SEARCHED: The following Public Records, incorporated by reference in the County Safety Element (and discussed at length in the related County Geologic Hazard Background Report) of the General Plan as adopted by the County Board of Supervisors in 2007 and updated in 2010, are utilized for those County-level disclosures below: "Geologic Hazard Overlay,""Flood Plain Safety Overlay,"and"Fire Safety Overlay"digital data provided by the County. FAULT ZONES San Bernardino County is crossed by numerous faults that have been, and could potentially be, the sources of moderate to large and potentially damaging earthquakes, While the County has officially adopted those "Earthquake Fault Zones" identified pursuant to the Alquist-Priolo Earthquake Fault Zoning Act for which disclosure is statutory, the Public Record also clefineates,the boundaries of"County Designated Fault Zones." Reporting Standards:11f any portion of the Property is located within either an "Earthquake Fault Zone" or a "County Designated Fault Zone"as delineated in the Public Record, "WITHIN"shall be reported, LIQUEFACTION POTENTIAL Liquefaction potential exists where relatively loose, sandy soils exist with high groundwater Ievel (less than 50 feet in depth) during long duration, high seismic ground shaking. Areas of the Valley Region that have liquefaction potential include the alluvial fans at the mouths of mountain, canyons and river floodplain deposits along the Santa Ana River, Cajon Creek, and Lytle Creek. Within the Mountain and Desert Regions there are areas where alluvial deposits exist with relatively shallow groundwater, indicating the potential for liquefaction. These include areas along the Mojave River; areas adjacent to certain faults that form groundwater barriers, such as local areas southwest of the Calico fault near Barstow, southwest of the Helendale fault in Lucerne Valley, and southwest of the Lockhart fault west of Barstow; the Mojave River Wash area south of the intersection of Interstate 15 and Basin Road; the area between Baker and Silver Lake; a small area between Big Bear Lake and Erwin Lake with high groundwater levels, and a small area between Big Bear Lake and Baldwin Lake, Please note that in March 2010 the County added new liquefaction Susceptibility data for the Big Bear area for which data was previously not available. While many Valley and Mountain Region potential liquefaction areas are clearly delineated in the Public Record, those in the Desert Region are not. Reporting Standards: If any portion of the Property is located within an area of Liquefaction Susceptibility as delineated in the Public Record, "IN"shall be reported. "Map Not Available"shall be reported for areas for which no data is available. EXISTING LANDSLIDES Landsiides typically occur in hillside or mountainous terrain, and occurrences are generally influenced by the nature of the rock or soil type, slope angle, groundwater ievels, and precipitation. New or existing landslides can also be influenced by construction activity, unusual natural or artificial wetting (such as irrigation), or erosion. Other equally important factors contributing to landslides are the relationship of discontinuity (bedding, foliation, joints, and faults) orientation of the rook in relation to the slope direction, the physical condition and degree of weathering of the rock and soil, and the frequency, location, and magnitude of earthquakes. The Public Record used as the basis for this disclosure represents a combination of findings from three separate geological Studies. Reporting Standards: If any portion of the Property is located within a mapped "existing landslide" as delineated in the Public Record, "IN"shall be reported. LANDSLIDE SUSCEPTIBILITY Different areas of the County have different levels of susceptibility to landslide activity.Areas of moderate relief, such as in the Chino Hilis, or in areas adjacent to high relief, such as along the Southern fronts of the San Gabriel and San Bernardino Mountains, are areas of concern. Localized areas in the Valley Region that have landslide potential include river banks and the areas Surrounding large open excavations, such as quarries. Landslides of all types are common in the Mountain Region of the County due to steep slopes, sharp narrow ridges, and steep-walled incised canyons and valleys, when combined with adverse geologic structure, high precipitation, and earthquakes. The landslides range in size from small rock falls or topples ,along road cuts to large landslide complexes. Reporting Standards: The area in which the Property is located with the highest Landslide Susceptibility ("High," "Medtum- High," "Low-Medium," or"Low") as delineated in the, Public Record shail be reported, "Map Not Available" shall be reported for areas for which no data is available. Please note that because subsurface conditions can vary over a relatively short distance in an area, some areas delineated as susceptible to landsliding may not actually be susceptible to landsliding. In aftbon, there may be localized areas that are susceptible to landsliding that have not been identified. FIRE SAFETY AREA The Fire Safety Overlay is created to provide greater public safety in areas prone to wildland brush, fires, by establishing additional development standards for these areas. The County has established three"Fire Safety Areas"�! Fire Safety Area I (FS'l), which includes areas within the mountains and valley foothills, is characterized by areas with moderate to steep terrain and moderate to heavy fuel loading, @M17-Fir.3t Amprican Profeqfimd Rpal EMate Seivices,inc.-2,00 Conrocv Suite t00 livrie CA 92602 Phonp (800)527-0027 Fax:(8001 854-9625 Page 9of20 FANHID Commercial Property Disclosure Reports The Natural Hazard Disclosure Report For SAN BERNARDINO County Property Address. 1267 W REDLANDS BLVD APN: 0169-351-04-0000 REDLANDS, SAN BERNARDINO COUNTY, CA 92373 Report Date: 12/08/2017 ("Property") Report Number: 2208782 • Fire Safety Area 2 (FS2), which includes areas lands just to the north and east of the mountain FS1 area in the mountain- desert interface, is characterized by areas with gentle to moderate sloping terrain and light to moderate fuel loading. In addition, these areas are periodically subject to high wind conditions that have the potential to spread wildfire, • Fire Safety Area 3 (F 3), which includes areas just south of the mountain FS1 area, is characterized by varying terrain from relatively flat to steeply sloping hillside areas. Present and future development is exposed to the impacts of wildland fires and other natural hazards primarily due to its proximity to FS1. These areas are subject to Santa Ana wind conditions that have the potential to spread wildfire. Reporting Standards: If a Property is within a Fire Safety Area as delineated in the Public Record, "IN"shall be reported. I'f the Property is in more than one Fire Safety Area, the highest numbered ("V being the highest) shall be reported, "NOT IN" shall be reported for those areas of the County not delineated in the Public Record as a Fire Safety Area, Please note the Public Record has a positional accuracy of+/-750 feet. AREAS OF SHALLOW FLOODING(PHELAN AREA ONLY) In 2008, FEMA completed their Digital Flood Insurance Rate Map (DFIRM) conversion and updated a number of flood zone areas in San Bernardino County, At that time FEMA designated large portions of the Phelan area Zone D, defined as an area with possible but undetermined flood hazards for which no flood analysis has been conducted. The County has since designated much of this area as a "Flood Plain Review Area 3" ("FP3") which includes areas, of shallow flooding with undetermined, but possible, flood hazards. New developments within this and other Flood Plain Review Areas are subject to corresponding provisions of the County Development Code(Section 82.14.040). Reporting Standards: If any portion of the Property is located within a "Flood Plain Review Area 3" as delineated in the Public Record, "IN" shall be reported. If a Property is within that portion of the designated Study Area for which FP3 data is not provided, or located outside the Study Area, "Map Not Available" shall be reported. For those properties for which, "Map Not Available" is applicable, please refer to the state-level discussion and disclosure of Spacial Flood Hazard Area and the Special Flood Hazard Area determination. @)2017-First A r Prcm Pmfcsslmal Real!Estate Se�rViCeS,,jr(', -200(,OMMeMe Suik100,hv�ne,CIAN,302 Phme (800)527.-0027 Fax (800)854-9625 Page 10 of 20 FANHD Commercial Property Disclosure Reports The Natural Hazard Disclosure Report Are y,,W R.-H D indc,r For SAN BERNARDINO County Property Address- 1257' REDLANDS BLVD APN: 0169-351-04-0000 REDLANDS, SAN BERNARDINO COUNTY, CA 92373 Report Date: 12/08/2017 ("Property") Report Number: 22087,82 CITY-LEVEL GEOLOGIC AND SEISMIC ZONES DISCUSSION This Report reviews the officially adopted geologic hazard rnaps in the Safety Element that each city in California is required to include in its General Plan, The city the subject Property is located in has either not officially adopted hazard zonation maps in its General Plan at an appropriate scale to delineate where hazards may exist on, a single parcel basis or will not make such maps available outside city offices. However, all Parties should be California is "earthquake country," Faults that may exist in this city or in neighboring regions could cause earthquake shaking or other fault related-phenomena on the Property. Other geologic hazards :such as, but not limited to liquefaction (a type of soil settling that can occur when loose, water-saturated' sediments are shaken significantly in an earthquake) may occur in certain valley floor areas and landslides are a possibility in any hillside area. Such potential natural hazards, may exist and be delineated on other sources used by the city in its Planning, Engineering, or Building Departments. Such potential sources are not reviewed in this Report, END OF LOCAL AREA DISCLOSURES AND DISCUSSIONS SECTION (0,2017-FrstAnmican Profpssuonai Real EsWe Services,Pnc.Z30 Cnnvjrj,ce Suele 100 Irvine ICA 92602 Prone (8001 ;-r 7)854_-9625 _P_a9e 1o_f20 FANHD Commercial Property Disclosure Reports The Natural Hazard Disclosure Report For SAN BERNARDINO County Property Address: 1267 W REDLANDS BLVD APN. 0169-351-,04-0000 REDLANDS, SAN BERNARDINO COUNTY, CA 92373 Report Date: 12/08/2017 ("Property") Report Number: 2208782 Part I Additional Property Specific Disclosures FORMER MILITARY ORDNANCE SITE DISCLOSURE DISCUSSION: Former Military Ordnance (FUD) sites can include sites with common industrial waste (such as fuels), ordnance or other warfare materiel, unsafe structures to be demolished, or debris for removal. California Civil Code Section 1102 requires disclosure of those sites containing unexploded ordnance. "Military ordnance" is any klind of munitions, explosive device/material or chemccal agent used in military weapons. Unexploded ordnance are munitions that did not detonate. NOTE: MOST FUD sites do not contain unexploded ordnance. Only those FUD sites that the U.S. Army Corps of Engineers (USACE) has identified to contain Military Ordnance or have mitigation projects planned for them are 6sclosed in this Report. Additional sites may be added as military installations are released under the Federal Base Realignment and Closure (BRAC)Act. Active military sites are NOT included on the FUD site list PUBLIC RECORD Data contained in Inventory Project Reports, Archives Search Reports, and related materials produced for, and made publicly available in conjunction with, the Defense Environmental Restoration Program for Formerly Used Defense Sites by the U.S,Army Corps of Engineers. Sites for which no map has been made publicly availab0e shall not be disclosed. REPORTING, STANDARD: If one or more facility identified in the Public Record is situated within a one (1) mile radius of the Property, "WITHIN"shall be reported. The name of that facility or facilities shall also be reported, @2017-IFkM Aro dcan Profcssionai Real Estate Seivkxas,Inc. Commerce Suee 1or.airvine,cA 92602 Phane1800)5274027 Fax l800)854-9 325 Page 12 of 20 FA Commercial Property Disclosure Reports The Natural Hazard Disclosure Report For SAN BERNARDINO County Property Address: 1267' REDLANDS BLVD APIN: 0169-351-04-0000 REDLANDS, SAN BERNARDINO COUNTY, CA 92373 Report Date: 12/08/2017 ("Property") Report Number: 2208782 AIRPORT INFLUENCE AREA DISCLOSURE DISCUSSION: Certain airports are not disclosed In this Report. FANHD has made a good faith effort to identify the airports covered under Section 1102.6a, Sources consulted include official land use maps and/or digital data made available by a governing Airport Land Use Commission (ALUC) or other designated government body. Most facilities for which an Airport Influence Area has been designated are included on the "California Airports List"maintained by the California Department of Transportation's Division of Aeronautics. Not disclosed in this Report are public use airports that are not in the "California Airports List", airports that are physically located outside California, heliports and seaplane bases that do not have regularly scheduled commercial service, and private airports or military air facilities unless specifically identified in the "California Airports List"'. If the seller has actual knowledge of an airport in the vicinity of the subject property that is not disclosed in this. Report, and that is material to the transaction,the seller should disclose this actual knowledge in writing to the buyer. Most facilities for which an Airport Influence Area has been designated are included on the"CaVornia Airports List"maintained by the California Department of Transportation's Division of Aeronautics. The inclusion of military and private airports varies by County, and heliports and seaplane bases are not included, therefore, airports in these categories may or may not be included in this disclosure, NOTE. Proximity to an airport does not necessarily mean that the property is exposed to significant aviation noise levels. Alternatively, there may be properties exposed to aviation noise that are greater than two miles from an airport. Factors that affect the level of aviation noise include weather, aircraft type and size, frequency of aircraft operations, airport layout, flight patterns or nighttime operations. Buyer should be aware that aviation noise levels can vary seasonally or change if airport usage changes. PUBLIC RECORD: Based on officially adopted land use,maps and/or digital data made publicly available by the governing ALUC or other designated government body. If the ALUC or other designated government body has not made publicly available a current officially adopted airport influence area map, then California law states that"a written disclosure of an airport within two(2)statute miles shall be deemed to satisfy any city or county requirements for the disclosure of airports in connection with transfers of real property," REPORTING STANDARD: "IN"shall be reported along with the facility names) and the"Notice of Airport in Vicinity"if any portion of the Property is situated within either(a) an Airport Influence Area as designated on officially adopted maps or digital data or(b) a two (2) mile radius of a qualrf&g facility for which an official Airport Influence Area map or digital data has not been made publicly available by the ALUC or other designated governing body, "NOT IN"shall be reported if no portion of the Property is within either area. @2017-Rist American Proossional Rea" EsWe SeMces,Inc,-200 Cornmowr ,Wel 100,k0ne,CA M02 Phoaw(800)527-0027 Fax:(800)854-9625 Page 13 of 2© FANHD Commercial Property Disclosure Reports The aturall azard Disclosure Report N.n—p M-1 Ois,A'— For SAN BERNARDINO County Property Address: 1267 W REDLANDS BLVD APN: 0169-351-04-0000 REDLANDS, SAN BERNARDINO COUNTY, CA 92373 Report Date: 12/08/2017 ("Property") Report Number: 2208782 AIRPORT NOISE DISCLOSURE P_ISCUSSION. California Civil Code §1102.17 requires the sefler(s) of residential real property who has/have actual knowledge that the property in the transaction is affected by airport use must give written notice of that knowledge, as soon as practicable, before transfer of title. Under the Federal Aviation Administration's Airport Noise Compatibility Planning Program Part 150, certain 65 decibel (dB) Community Noise Equivalent Level (CNEL) contour maps have been produced for some airports. Not all airports have produced noise exposure maps. A property may be near or at some distance from an airport and not be within a delineated noise exposure area, but stili experience aviation noise. Unless 65dB CNEL contour maps are published, helipads and military sites are not included in this section of the Report, The Airport Noise Compatibility Planning Program is voluntary and not all airports have ellected to participate. Furthermore, not all property in the vicinity of an airport is exposed to 65dB CNEL or greater average aviation noise levels. Conversely a property may be at some distance from an airport,and still experience aviation noise, Buyer should be aware that aviation noise levels can vary seasonally or change if airport usage changes after a map is published or after the Report Date, F,ANHID uses the most seasonally conservative noise exposures provided. Federal funding may be available to help airports implement noise reduction programs. Such programs vary and may include purchasing properties, rezoning, and insulating homes for sound within 65dB areas delineated on CNEL maps, Airport owners have also cooperated by imposing airport use restrictions that include curfews, modifying flight paths, and aircraft limitations, PUBLIC RECORD: Certain 65 decibel (dB)Community Noise Equivalent Level(CNEL)contour maps produced under the Federal Aviation Administration's,Airport Noise Compatibility Planning Program Part 1'50. REPORTING STANDARD:' "IN" shall be reported if any portion of the Property is situated within a 65 decibel Community Noise Equivalent Level contour identified in the Public Record. "NOT IN"shall be reported if no portion of the Property is situated within a 65 decibel Community Noise Equivalent Level contour identified in the Public Record, Cc)201 7-R'M Anieiilcml P¢ofessloim�Reay EsWe Servlces,he -2(10 cMMTwce suiicrifs(}, rYvon e,CA 02602 Rone (8001)5274027 Fav(800)854-9625 Page 14 of 20 FANHD Commercial Property Disclosure Reports The Natural Hazard Disclosure Re ort P For SAN BERNARDINO County Property Address: 1267 W REDLANDS BLVD APN- 0169-351-04-0000 REDLANDS, SAN BERNARDINO COUNTY CA 92373 Report Date: 12/08/2017 ("Property") Report Number: 2208782 Part 4. General Advisories METHAMPHETAMINE CONTAMINATED PROPERTY DISCLOSURE ADVISORY DISCUSSION: According to the"Methamphetamine Contaminated Property Cleanup Act of 2005"a property owner must disclose in writing to a prospectcve buyer of local health officials have issued an order prohibiting the use or Occupancy of a property contaminated by meth lab activity, The owner must also give a copy of the pending order to the buyer to acknowledge, receipt in writing, Failure to comply with these requirements may subject an owner to, among other things, a civil penalty up to $5,000. Aside from disclosure requirements, this new law also sets forth procedures for local authorities to deal with meth-contaminated properties, including the filing of a lien against a property until the owner cleans up the contamination or pays for the cleanup costs. @017-Flrat Aia-ielcaii Flt ofessioli Lill Real Estate Servl(.;es,InC-20OColnlnerce Smtei(hf ll rine CA92602P]ions (80 ),527 0027 Faux.(000)854-9626 Page 15 of 20 FANHD Commercial Property Disclosure Reports F,nWA,-'n— The Natural Hazard Disclosure Report Xaf—M....dDi-b--s" For SAN BERNARDINO County Property Address: 1267 W REDLANDS BLVD APN': 0169-351-04-0000 REDLANDS, SAN BERNARDINO COUNTY, CA 92.373 Report Date: 12/08/2017 ("Property") Report Number: 2208782 MOLD ADVISORY DISCUSSION: The Buyer is hereby advised that naturally occurring molds may exist both inside and outside of any home and may not be visible to casual inspection. Persons exposed to extensive mold levels can become sensitized and develop allergies to the mold or other health problems. Extensive mold growth can damage a structure and its contents. All prospective purchasers of residential and commercial property are advised to thoroughly inspect the Property for mold. Be Sure to inspect the Property inside and Out for sources of excess moisture, Current water leaks and evidence of past water damage. As part Of 2 buyer's physical inspection of the condition of a property, the buyer should consider engaging an appropriate and qualified professional to inspect and test for the presence of harmful molds and to advise the buyer of any potential rusk and options available. This advisory is not a disclosure of whether harmful mold conditions exist ata property or not. No testing or inspections of any kind have been Performed by The Company, Any use of this form is acknowledgement and acceptance that The Company does not disciosle, warrant or indemnify mold conditions at a property in any way and Is not responsible in any way for mold conditions that may exist. Information is available from the California Department of Health Services Indoor Air Quality Section fact sheet entitled, "Mold in My Home: What Do I Do?" The fact sheet is available at or by calling (510)620-3620. The Toxic Mold Protection Act of 2001 requires that information be developed regarding the potential issues surrounding naturally occurring molds within a home. Information was written by environmental authorities for inclusion in the Residential Environmental Hazards:A Guide for Homeowners, Buyers, Landlords and Tenants booklet developed by the California Environmental Protection Agency and the Department of Health Services. It is found in Chapter VII of that booklet, and includes references to sources for additional information. For local assistance,contact your county or city Department of Health, Housing,or Environmental Health, (s)2017-RV hm� ricaii Professional Re M Eswe Services,Inc.-,,?cx cunimme,S.We 100 Wine CA92602 Phwre,(800)527-0027 Fax�(8010854A625 Page 16 of 20 FANHD Commercial Property Disclosure Reports The Natural Hazard DiscIcy s�re Report NawrW HrdDm4o,,- For SAN BERNARDINO County Property Address: 1267 W REDLANDS BLVD APP: 0169-351-04-0000 REDLANDS, SAN BERNARDINO COUNTY, CA 92373 Report Date: 12/08/2017 ("'Property") Report Number: 2208782 RADON ADVISORY DISCUSSION: For its Radon Advisory, FANFID uses the updated assessment of radon exposure publishedin 1999 by the Lawrence Berkeley National Laboratory (LBNL) and Columbia University, under support from the U.S. Environmental Protection Agency (EPA), the National Science Foundation, and the US Department of Energy (published online at 11 Based on this recent assessment, FANHD radon advisory is as follows: All of California's 58 counties have a predicted median annual-average living-area concentration of radon below 2.0 pCi/L (picocuries per liter of indoor air) --which is well below the EPA's guideline level of 4 pCIlL and equivalent to the lowest hazard zone(Zone 3)on the 1993 EPA Map of Radon Zones. The "rnedian concentration" means that half of the homes in a county are expected to be below this value and half to be above it. AM houses contain some radon, and a few houses will contain Much more than the median concentration. The onlv wav to accurately assess Ion -term exposure to radon in a sgecific,house is through lona-term_testing (sampling the Indoor air for avear or more).The EPA recommends that all homes be tested for radon. Columbia University's"Radon Project"websiteoffers help to homeowners in assessing the cost vs. benefit of testing a specific house for radon or modifying it for radon reduction (see http,,//www.stat.columbia.edu/—i,adon/). NOTE: FANHD does not use the EPA's 1993 map for advisory purposes because that map shows "short-term" radon exposure averaged by county. It was based on "screening measurements" that were intentionally designed to sample the worst-case conditions for indoor air in US homes--using spot checks (sampling for just a few days), in the poorest air quality (with sealed doors and windows), at the worst time of the year (winter), in the worst part of the house (the basement, if one was available). These short-term, winter, basement measurements are both biased and variable compared to long-term radon concentrations (averaged over a year) in the living area of a house. Long-term concentrations are a more accurate way to judge the long-term health risk from radon. For the above reasons, the EPA expressly disclaims'the use of its 1993 map for determining whether any house should be tested for radon, and authorizes no other use of its map for property-specific purposes. For additional information about EPA guidelines and radon testing, see "Chapter VII--Radon", in the California Department of Real Estate's Residential Environmental Hazards:A Guide for Homeowners, Homebuyers, Landlords and Tenants. ENDANGERED SPECIES ACT ADVISORY DISCUSSION: The Federal Endangered Species Act of 1973 (""ESA"'), as amended', requires that plant and animal species identified and classified ("listed") by the Federal government as "threatened"or"endangered" be protected under U.S. law. Areas of habitat considered essential to the conservation of a listed species may be designated as "critical habitat" and may require special management considerations or protection. All threatened and endangered species -- even if critical habitat is not designated for them--are equally afforded the full range of protections available under the ESA. In California alone, over 300 species of plants and anirnals have been designated under the ESA as threatened or endangered, and over 80 species have critical habitats designated for them. Most California counties are host to a dozen or more protected species and, in many cases, 10 or mores ecies have designated critical habitats within_g_count y, ADVISORY: An awareness of threatened and endangered species and/or critical habitats is not reasonably expected to be within the actual knowledge of a seller. No federal or state law or regulation requires a seller or seller's agent to disclose threatened or endangered species or critical habitats, or to otherwise investigate their possible existence on reale property, Therefore, Buyer is advised that prior to Purchasing a vacant land parcel or other real property, Buyer should consider investigating the existence of threatened or endangered species, or designated critical habitats, on or in the vicinity of the Property which could affect the use of the Property or the success of any proposed (re)development. FOR MORE INIFORMATIO : Complete and current information about the threatened and endangered species in California that are Federally listed in each county--including all critical habitats designated there--is available on the website of the U.S. Fish& Wildlife Service, the Federal authority which has enforcement responsibility for the ESA, U.S. Fish &Wiildlife Service Endangered Species Database(TESS) L,tILL/e cojjh�vsovlt�ess (t)2017-Fjnrsr Ani ricin Prafessiond Rpal Estate Services,lnc.-'200 Couvier ce.Smte,100 herr,CA 92602 Phone i8001)527..01027 Fax-(800)894-9625 Page 17 of 20 FANHD Commercial Property Disclosure Reports axeThe Natural Hazard Disclosure Re ort Ill—d P For SAN BERNARDINO County Property Address: 1267 W REDLANDS BLVD APN: 0169-351-04-0000 REDLANDS, SAN BERNARDINO COUNTY, CA 92373 Report Date: 12/08/2017 ("Property") Report Number: 2208782 ABANDONED MINES ADVISORY DISCUSSION:According to the California Department of Conservation, Office of Mine Reclamation, since the Gold Rush of 1849, tens of thousands of mines have been dug in California, Many were abandoned when they became unproductive or unprofitable. The result is that California's landscape contains many thousands of abandoned mines, which can pose health, safety, or environmental hazards on and around the mine property. Mines can present serious physical safety hazards, such as open shafts or adits (mine tunnel), and they may create the potential to contaminate surface water, groundwater, or air quality. Some abandoned mines are such massive problems as to earn a spot on the Federal Superfund environmental hazard list, No California law requires the disclosure of abandoned mines in a real estate transaction, unless the existence of an abandoned mine is within the actual knowledge of the Seller and is deemed to be a fact material to the transaction, The Office of Mine Reclamation (OMR) and the U.S. Geological Survey maintain a database of abandoned mines-- however, it is known to be incomplete and based on maps that are often decades out of date. Many mines are not mapped because they are on private land. The OMR warns that, "Many old and abandoned mines are not recorded in electronic databases, and when they are, the information may not be detailed enough to accurately define, differentiate or locate the mine feature, such as a potentially hazardou's vertical shaft or horizontal aditormine waste."(See reference below.) Accordingly, this Report does not contain an abandoned mines disclosure from any government database or map or any other source,in order to protect the seller from liability for non-disclosure of unrecorded abandoned mines. Parties concerned about the possible existence or impact of abandoned mines in the vicinity of the Property are advised to retain a State-licensed geotechnical consultant to study the site and issue a report. Other sources of information include, but are not limited to, the State Office of Mine Reclamation at (916) 323-9198 (website:h!tLLM,Lonservation.ca.qRvIOMR), and the Engineering, Planning or Building Departments in the subject City and County. FOR MORE INEORMATION: For more information visit the State Office of Mine Reclamation's website at: h1tP,//wWW consft—ry OIL & GAS WELL ADVISORY California is currently ranked fourth in the nation among oil producing states. Surface oil production is concentrated mainly in the Los Angeles Basin and Kern County, and in districts elsewhere in the state. In recent decades, real estate development has rapidly encroached into areas where oil production has occurred. Because the state's oil production has been in decline since the 1980's, thousands of oil and gas wells have been shut down or abandoned, and Many of those wells are in areas where residential neighborhoods now exist. According to the California Department of Conservation ("DOC"), to date, about 230,000 oil and gas wells have been drilled in California and around 105,000 are still in use. The majority of remaining wells have been sealed ("capped") under the supervision of the DOC's Division of Oil, Gas and Geothermal Resources. A smaller number have been abandoned and have no known responsible operator--these are called "orphan"wells. The state has a special fund that pays,the cost of safely capping orphan wells, however,that program is limited in its scope and progress. Buyer should be aware that, while the DOC database is the most comprehensive source available for California oil and gas, well information, the DOC makes no warranties that the database is absolutely complete, or that reported well locations are known,with absolute accuracy. For More Information For a search of the state's databases of oil and gas wells and sites of known environmental contamination on or near the Property, please obtain the FANHD Residential Environmental Report, For general information, visit the California Department of Conservation, Division of Oil, Gas, and Geothermal Resources at btp.,//www.consrvca.qov1dcq. END OF NATURAL HAZARD DISCLOSURE REPORT SECTION See Terms and Conditions at end of this Report. @2017-First Arnedcari Profes6onM Real Estate SeMces,inc, -Xx Commerre &IM 100,lrviue CA 92602 Phcrne {800)5270027 Fax:(800)8549625 Page 18 of 20 FANHD Commercial Property Disclosure Reports F,-1 A-6,- Terms and Conditions Nar—.111--J Dk,h--- Property Address: 1267 W REDLANDS BLVD APN: 0169-351-04-0000 REDLANDS, SAN BERNARDINO COUNTY, CA 92.373 Report Date: 12/08/2017 ("Property") Report Number: 22087'82 TERMS and CONDITIONS ACCEPTANCE OR USE OF THIS REPORT CONSTITUTES APPROVAL AND ACCEPTANCE OF THE TERMS, CONDITIONS, AND LIMITATIONS STATED HEREIN. The Report ("Report") is subject to each of the following Terms and Conditions. Each Recipient (defined below) of the Report agrees that the Report is subject to the following Terms and Conditions, and each Recipient agrees to be bound by such. Use of this Report by any Recipient constitutes acceptance of the Terms and Conditions to the Report. The Terms and Conditions below are incorporated by this reference into the Report. This Report is not an insurance Policy. This Report is made for the real property specifically described in the Report (the "Property") and solely for the transaction for which it was originally purchased ("Transaction"), The Property shall not include any property beyond the boundaries of the real property described in the Report. The Property shall not include any structures(whether located on the Properly, or not),easements, or any right,title, interest,estate, or easernent in any abutting streets, roads,alleys,lanes,ways,orwaterways. IMPORTANT NOTICE,, Transferor(s) and transferee(s) shall read the complete Report in its entirety before the close of escrow. A "Signature Page" or "Summary Pages"document may be included in the electronic delivery of this Report.Those documents do not replace the complete Report or remove the need to read the complete Report,and do not remove the requirement to disclose.The Signature Page and Summary Pages documents are Subject to the Terms and Conditions of the complete Report, A. No Third Party Reliance on This Report. Only the transferor(s) and transferee(s), and their agents/brokers, if any, involved in the Transaction (collectively,the"Recipients")may use and rely on this Report and only after they have paid in full for the Report.While disclosures made on the Natural Hazard Disclosure Statement in the Report may indicate certain risks to the Property,the disclosures are only"...between the transferor,the transferor's agents, and the transferee, and shall not be used by any other party, including, but not limited to, insurance companies, lenders, or governmental agencies,for any purpose."Cal,Civil Code section 1103,2,subdivision(g). B. Seller and Seller's Agent's Responsibility of Full Disclosure, Recipients are obligated to make disclosures, and always disclose material facts,that are within their actual knowledge. C. Scope of Report.This Report is limited to determining whether the Property is in those specified natural hazard zones and property tax districts, and in proximity to those specified environmental sites(depending on the report product ordered),as defined in the Report.The Report is not a geologic report or a land survey and no site inspection has been made in producing the Report. FANHD makes no determination,, expresses no opinion or view, and assumes no responsibility in this Report concerning the right, entitlement, or ability to develop or improve the Property. FANHD has no information concerning whether the Property can be developed or improved. No determination is made and no opinion is expressed, or intended, by this Report concerning structures or soils on or outside of the Property, including, without limitation, habitability of structures or the Property, suitability of the Property for construction or improvement, potential for soil settlement, drainage, soil subsidence, or other soil or site conditions. The Recipient(s) is advised to consult the local Planning Department to determine whether factors beyond the scope of this Report may limit the transferee(s)ability to use or improve the Property. The Report is not a title report,and no determination is made and no opinion is expressed,or intended, by this Report as to title to the Property or liens against the Property, recorded or otherwise, or whether the Property is cm-nprised of legal lots in conformance with the California Subdivision Map Act or local ordinances, The Report is not a property inspection report, and no determination is made and no opinion is expressed,or intended, by this Report concerning architectural,structural, mechanical, engineering, or legal matters, or the marketability or value of the Property. FANHD has not conducted any testing or physical or visual examination or inspection of the Property, nor is this Report a substitute for any Such tesfing, physical or ViSUat examination,or inspection. D. Tax and Environmental Disclosures (if !included in Report), No determination is made and no opinion is expressed, or intended, by the Report concerning the existence of property tax liabilities, or the existence of hazardous or toxic materials or substances, or any other defects, on, Linder, or in proximity to the Property, unless specifically described in the Report. FANHD's total liability for any error or omission in its disclosures relating to taxes and/or environmental matters shall be limited to actual proven damages not to exceed the price paid for this Report. E, FANHD Database Updates, Each database used in this, Report is updated Iby the responsible agency at various intervals. Updates for a database are determined by the responsible agency and may be made at any time and without notice. FANHD maintains an update schedule and makes reasonable efforts to use updated information. For these reasons, FANHD reports information as of the date when the database was last updated by FANHD.That date is specified as the"Database Date"for each database. F. Statutory and Additional Disclosures, Advisories, and Local Addenda (if included in Report). No determination is made and 110 opinion is expressed, or intended, by this Report concerning the need to purchase earthquake or flood insurance for the Property.In preparing the Report, FANHD accurately reported on information contained in Government Records. FANHD reviewed and relied upon those Government Records specifically identified and described in the Report.FANHD has not reviewed or relied upon any Government Records that are not specifically identified in the Report. FANHD also has not reviewed any plat maps, Survey maps, surveyor maps, assessor maps, assessor parcel maps, developer maps, or engineering wraps, whether or not such maps have been recorded. No determination is made and no opin%on is expressed, or intended, by the Report concerning, any matters identified in Government Records that were not reviewed by FANHD, Local Addenda, where applicable, are included "AS IS" as an accommodation to the local real estate board that provided the content; FANFID assumes no responsibility for the accuracy of any information included in the Local Addenda, G. FEMA Flood Determination Certificate (if accompanying the Report),. No determination is made and no opinion is expressed, or intended, by the Report concerning the requirement for or cost of flood insurance on the Property. Recipient(s) understands that a lender may require flood insurance to secure its loan collateral independent of whether FEMA may require flood insurance under the National Flood Insurance Program on a federally backed mortgage, The FEMA Flood Determination Certificate ("Flood Certificate"), which, may accompany the Report, is produced by a third-party expert certified by FEMA to provide Flood Certificates, FANHD assumes no liability for errors in that third-party flood determination. (00 17-First Ainericari P[rolessiona:Real Estale Services,Inc.-201) �aijie?Co fi.Anr r',A 92602 Phone.(800)527-0027 Fax:(800),554 9625, Page 19 of 20 FANHD Commercial Property Disclosure Reports Firw Ann,,k— Terms and Conditions N�....... Property Address: 1267W REDLANDS BLVD APN: 0169-351-04-0000 REDLANDS, SAN BERNARDINO COUNTY, CA 92373 Report Date: 12/08/2017 ("Property") Report Number: 2208782 K Changes to Government Record after Report Date, This Report is issued as of the Report Date identified in the Report. FANHD shall have no obligation to advise any Recipient of any information learned or obtained after the Report Date even if such information would modify or otherwise affect the Report. Subsequent to FANHD acquisition of Government Records, changes may be made to said Government Records and FANHD is not responsible for advising the Recipients of any changes.FANHD will update this Report upon request and at no charge during the transaction process for which this Report was issued, but not to exceed one year from the date of the Report. Likewise,' FANHD is not liable for any impact an the Property that any change to the Government Records may have, L Government Record Sources.FANHD relies upon the Government Records specifically identified in the Report without conducting an independent investigation of their accuracy. FANHD assunnes no responsibility for the accuracy of the Government Records identified in the Report. FANHD inakes no warranty or representation of any kind, express or implied, with respect to the Report. FANFID expressly disclaims and excludes any and all other express and implied warranties, including,without limitation,warranties of merchantability or fitness for a particular purpose. The FANHD Report is"AS IS". J. Limitation of FANHD's Liability 1. FANHD is not responsible for: Any inaccuracies or incompleteness of the information in the Public Records. Inaccurate address information provided for the Property, Any other information not contained in the Public Records as of the Report Date. Any information which would be disclosed by a physical inspection of the Property. • Any information known by one of the Parties. The health or risk to humans or animals that may be associated with any of the disclosed hazards. The costs of investigating or remediating any of the disclosed hazards. 2. FAli total liability and responsibility to all Recipients collectively for any and all liabilities, causes of action, claim or olaims, including but not limited to claims for breach of contract or negHgence, shall be limited to the price paid for the Report. FANHD expressly disclaims any liability for Recipients indirect, incidental and/or consequential damages, including without lirnitafion lost profits even if such damages are foreseeable. In the event of any error, omission or inaccuracy in the FANHD Report for which FANHD is liable, FANHD shall have no duty to defend or pay any attorneys' fees, costs or expenses incurred by the Recipients, or any of them, The Recipients, and each of them, expressly waive the benefits of California Civil Code Section 2778, FANHD has not conducted an independent investigation of the accuracy of the information provided by the Recipient. FANHD assumes no responsibility for the accuracy of information provided by the Recipient. FANHD shall be subrogated to all rights of any claiming party against anyone including, but not limited to, another party who had actual knowledge of a matter and failed to disclose it to the Recipients in writing prior to the close of escrow. K. Reportilngi of Risk Elements for Condominium Projects, Planned! Unit Developments, and Other Properties with Common or Undivided Interests.Because California's Residential Natural Hazard Disclosure Law requires disclosure if any portion of the Property is located within a specified natural hazard area/zone, the Report must indicate that the subject Property fats within the area/zone if any portion of such: a condominium project, planned unit development,or common area is located within a specified hazard area/zone. L. Governing Law.The Report shall be governed by,and construed in accordance with,the laws of the State of California. M. Small Claims or Arbitration. This provision constitutes an agreement to arbitrate disputes an an individual basis. Any party may li an individual action in small claims court instead Of pursuing arbitration. All disputes and claims arising Out of or relating to the Report must be resolved by binding arbitration.This Report to arbitrate includes,but is not limited to,all disputes and claims between FANHD,transferor(s)and transferee(s)and claims that arose prior to purchase of the Report. This agreement to arbitrate applies to transferor(s) and transferee(s) successors in interest, assigns, heirs, spouses, and children.As noted above,a party may elect to bring an individual action in small claims court instead of arbitration, so long as the dispute falls within the jurisdictional requirements of small claims court. Any arbitration must take place on an individual basis, FANHD, transferor(s)and transferee(s)agree that they are waiving any right to a jury trial and to bring or participate in a class, representative, or private attorney general action, and further agree that the arbitrator lacks the power to consider claims for injunctive or declaratory relief,or to grant relief effecting anyone other than the individual claimant. The arbitration is governed by the Commercial Arbitration Rules and the Supplementary Procedures for Consumer Related Disputes (the"AAA Rules") of the American Arbitration Association ("AAA"), as modified by this Agreement, and will be administered by the AAA. Company will pay all AAA filing, administration and arbitrator fees for any arbitration it initiates and for any arbitration initiated by another party for which the value of the claims is $75,000 or less,unless an arbitrator determines that the claims have been brought in bad faith or for an improper purpose,in which case the payment of AAA fees wilt be governed by the AAA Rules.A COPY OF THESE RULES IS AVAILABLE FROM THE AAA!S WEB SITE AT WWW.ADR.ORG OR ON REQUEST FROM THE COMPANY. THE ARBITRATION AWARD MAY INCLUDE ATTORNEY'S FEES IF ALLOWED BY—FEDERAL, STATE, OR OTHER APPLICABLE LAW AND MAY BE ENTERED AS A JUDGMENT IN ANY COURT OF PROPER JURISDICTION. The arbitration Will take place in the same county in which the property covered by the Report is located. The Federal Arbitration Act will govern the interpretation,applicability and enforcement of this arbitration agreement.This arbitration agreement will survive the termination of this Report. N. Severability,If any provision of the Terms and Conditions to this Report is determined to be invalid Or unenforceable for any reason,then Such provision shall be treated as severed from the remainder of the Terms and Conditions, and shall not affect the validity and enforceability of all of the other provisions of the Terms and Conditions, OOther Agreements. This Report constitutes the entire, integrated agreement between FANHD and Recipients, and supersedes and replaces all prior statements,representations,negotiations,and agreements. END OF REPORT @c)20117-f=irst American Professional Real Esiate 13ervices,Inc .2001 ConirnerC6r SrOp 1('@ Irdne CA 92602 Phonei(80(11)527-0027 Fax,(800)854-9625 Page 20 of 20 3281 E Guasti Road, Suite 440 First AmericanOntario,CA 91761 Ph-(909)510-6206 I tk In F - 088 -surance Company FAX (877)461-2 N AT'l 0 N A 1, C C)M N1 E R C,'IAL S E R V G C ES ENTITY D0CUMLLjAEQLjaL1�j In order for us to complete your escrow promptly, please furnish, Escrow with. the following documents as applicable: If you hold title oi-will be taking title as a Corporation, please send the following: l. Articles of Incorporation 2, By-Laws 1 Resolution to Sell or Borrow (not required to purchase) ,4. Certificate of Good Standing from Secretary of State (if outside of California, signatures must have two (2) Corporate Officers: President or Vice-President and Secretary or Treasurer. Less than two, signatures will require a Corporate Resolution authorizing a single signature). If you hold title or will be taking title as a Limited Liability Company, please send the following: 1. Full copy of Operating Agreementand all amendments 2. Certified copy of LLC-1 filed with Secretary of State to be recorded (if out of state, please provide equivalent and a Certificate of Good Standing and certified copy of LLC-5 filed in Sacramento to be recorded). 1 Resolution Showing Authorized Signers If you hold title or will be taking title as a General Partnership, please send the following: I. Full copy of Partnership Agreements and all amendments 2, Certified copy of GP-1 filed with Secretary of State to be recorded (if outside California, certified copy of the Statement of Partnership Authority filed in another state, should be filed with California Secretary of State and a certified copy submitted for recording.) 3. Resolution Showing Authorized Signers If you hold title or will be taking title as a Limited Partnership,please send the following: I. Full copy of Partnership Agreements and all amendments 2. Certified copy of LP-1 filed with Secretary of State to be recorded (if out of state, please provide equivalent and a Certificate of Good Standing and certified copy of LP-5 filed in Sacramento to be recorded.) 3. Resolution Showing Authorized Signers If you hold title or will be taking title in a Trust, please send the following: I. Full copy of the Trust for the Title Officer to examine. 2. Completion of the Trust Certification, which is attached. Please note that this document needs to be notarized when you sign. Form No. 1068-2 Commitment No.:NCS-882726-ONTI ALTA Plain Language Commitment Page Number:1 Amended/Updated `e1,0 First American Title Insurance Company National Commercial Services 3281 E Guasti Road, Suite 440 Ontario, CA 91761 January 19, 2018 Herrick Johnson Lee &Associates Commercial Real Estate Services, Inc. - Riverside 3240 Mission Inn Ave Riverside, CA 92507-4069 Phone: (951)276-3603 Fax: (951)823-8603 Customer Reference: 1267 West Redlands Boulevard Title Officer: Matthew Hooks Title Assistant: Erin West Phone: (909)510-6207 Phone: (909)510-6200 Email: mhooks@firstam.com Email:sss ewest@firstam.com Order Number: NCS-882726-ONT1 Escrow Officer: Kelly Simoneau Phone: (909)510-6206 Email: ksimoneau@firstam.com Owner: Cheryl A. Nelson First American Title Insurance Company Form No. 1068-2 Commitment No.:NCS-882726-ONT1 ALTA Plain Language Commitment Page Number:2 Property: 1267 West Redlands Boulevard, Redlands, CA Attached please find the following item(s): Commitment Thank You for your confidence and support. We at First American Title Insurance Company maintain the fundamental principle: Customer First. Form No. 1068-2 Commitment No.:NCS-882726-ONTI ALTA Plain Language Commitment Page Number:3 First American Title Insurance Company INFORMATION The Title Insurance Commitment is a legal contract between you and the company. It is issued to show the basis on which we will issue a Title Insurance Policy to you. The Policy will insure you against certain risks to the land title, subject to the limitations shown in the policy. The Company will give you a sample of the Policy form, if you ask. The Commitment is based on the land title as of the Commitment Date. Any changes in the land title or the transaction may affect the Commitment and the Policy. The Commitment is subject to its Requirements, Exceptions and Conditions. This information is not part of the title insurance commitment. TABLE OF CONTENTS Page Agreement to Issue Policy 3 Schedule A 1. Commitment Date 4 2. Policies to be Issued,Amounts and Proposed Insured 4 3. Interest in the Land and Owner 4 4. Description of the Land 4 Schedule B-1 - Requirements Schedule B-2 - Exceptions Conditions YOU SHOULD READ THE COMMITMENT VERY CAREFULLY. If you have any questions about the Commitment, please contact the issuing office. Form No. 1068-2 Commitment No.:NCS-882726-ONT1 ALTA Plain Language Commitment Page Number:4 COMMITMENT FOR TITLE INSURANCE Issued by Flrst Amerlcan Title Insurance Company Agreement to Issue Policy We agree to issue a policy to you according to the terms of this Commitment. When we show the policy amount and your name as the proposed insured in Schedule A, this Commitment becomes effective as of the Commitment Date shown in Schedule A. If the Requirements shown in this Commitment have not been met within six months after the Commitment Date, our obligation under this Commitment will end. Also, our obligation under this Commitment will end when the Policy is issued and then our obligation to you will be under the Policy. Our obligation under this Commitment is limited by the following: The Provisions in Schedule A. The Requirements in Schedule B-1. The Exceptions in Schedule B-2. The Conditions. This Commitment is not valid without Schedule A and Sections 1 and 2 of Schedule B, Form No. 1068-2 Commitment No.:NCS-882726-ONTI ALTA Plain Language Commitment Page Number:5 SCHEDULE A 1. Commitment Date: January 10, 2018 at 7:30 A.M. 2. Policy or Policies to be issued: Amount (A) ALTA Owner's Policy $2,162,728.00 ALTA Standard Owner Policy Proposed Insured: City of Redlands, a municipal corporation (B) ALTA Loan Policy $To Be Determined To Be Determined Proposed Insured: To Be Determined 3. (A) The estate or interest in the land described in this Commitment is: Fee (B) Title to said estate or interest at the date hereof is vested in: Cheryl A. Nelson, a Married woman as her sole and separate property 4. The land referred to in this Commitment is situated in the City of Redlands, County of San Bernardino, State of California, and is described as follows: PARCEL 1: ALL THAT PORTION OF BLOCK 20, BARTON RANCH, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA,AS PER PLAT RECORDED IN BOOK 6, PAGE 19 OF MAPS, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: COMMENCING AT A POINT ON THE SOUTHERLY LINE OF STATE HIGHWAY WHICH IS NORTH 710 4T WEST 350 FEET FROM THE WEST LINE OF TENNESSEE STREET; THENCE SOUTH PARALLEL WITH THE WEST LINE OF TENNESSEE STREET, 100 FEET; THENCE NORTH 710 4T WEST PARALLEL WITH THE STATE HIGHWAY, 205 FEET; THENCE NORTH PARALLEL WITH THE WEST LINE OF TENNESSEE STREET, 100 FEET TO THE SOUTH LINE OF STATE HIGHWAY; THENCE SOUTH 710 4T EAST ALONG THE SOUTH LINE OF STATE HIGHWAY, 205 FEET TO THE POINT OF BEGINNING. PARCEL 2: ALL THAT PORTION OF EAST HALF OF BLOCK 20, BARTON RANCH, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA,AS PER PLAT RECORDED IN BOOK 6, PAGE 19 OF MAPS, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: Form No. 1068-2 Commitment No.:NCS-882726-ONT1 ALTA Plain Language Commitment Page Number:6 COMMENCING AT A POINT ON THE SOUTHERLY LINE OF STATE HIGHWAY, WHICH IS NORTH 710 47`WEST 555 FEET FROM THE WEST LINE OF TENNESSEE STREET; THENCE SOUTH PARALLEL WITH THE WEST LINE OF TENNESSEE STREET, 100 FEET; THENCE NORTH 710 4T WEST PARALLEL WITH SAID STATE HIGHWAY TO THE WEST LINE OF THE EAST HALF OF SAID BLOCK 20; THENCE NORTH ALONG SAID WEST LINE OF SAID EAST HALF OF SAID BLOCK, 100 FEET TO THE SOUTH LINE OF SAID STATE HIGHWAY; THENCE SOUTH 710 47`EAST ALONG THE SOUTHERLY LINE OF SAID STATE HIGHWAY TO POINT OF BEGINNING. PARCEL 3: THE NORTHERLY 100 FEET, MEASURED ALONG THE EAST AND WEST LINE OF THE FOLLOWING DESCRIBED PROPERTY: ALL THAT PORTION OF THE SOUTHEAST QUARTER OF BLOCK 20, BARTON RANCH, IN THE COUNTY OF SAN BERNARDINO, STATE OF CALIFORNIA, AS PER PLAT RECORDED IN BOOK 6, PAGE 19 OF MAPS, RECORDS OF SAID COUNTY, DESCRIBED AS FOLLOWS: BEGINNING AT A POINT ON THE WESTERLY LINE OF TENNESSEE STREET, 100 FEET SOUTH OF THE STATE HIGHWAY, AS IT NOW EXISTS; THENCE CONTINUING SOUTH TO THE SOUTHEAST CORNER OF SAID SOUTHEAST QUARTER OF BLOCK 20; THENCE WEST TO THE SOUTHWEST CORNER OF SAID SOUTHEAST QUARTER; THENCE NORTH TO A POINT ON THE WEST LINE OF SAID SOUTHEAST QUARTER, 100 FEET SOUTH OF THE SOUTHERLY LINE OF SAID STATE HIGHWAY; THENCE SOUTHEASTERLY TO THE POINT OF BEGINNING. EXCEPT THE EAST 350 FEET MEASURED ALONG THE NORTH LINE THEREOF. APN: 0169-351-04-0-000 Form No. 1068-2 Commitment No.:NCS-882726-ONT1 ALTA Plaint Language Commitment Page Number:7 SCHEDULE B SECTION ONE REQUIREMENTS The following requirements must be met: (A) Pay the agreed amounts for the interest in the land and/or the mortgage to be insured. (B) Pay us the premiums, fees and charges for the policy. (C) Documents satisfactory to us creating the interest in the land and/or the mortgage to be insured must be signed, delivered and recorded. (D) You must tell us in writing the name of anyone not referred to in this Commitment who will get an interest in the land or who will make a loan on the land. We may then make additional requirements or exceptions. (E) Releases(s) or Reconveyance(s) of Item(s): 8 (F) Other: None (G) You must give us the following information: 1. Any off record leases, surveys, etc. 2. Statement(s) of Identity, all parties. 3. Other: None The following additional requirements, as indicated by "X", must be met: [X] (H) Provide information regarding any off-record matters, which may include, but are not limited to: leases, recent works of improvement, or commitment statements in effect under the Environmental Responsibility Acceptance Act, Civil Code Section 850, et seq. The Company's Owner's Affidavit form(as provided by company) must be completed and submitted prior to close in order to satisfy this requirement. This Commitment will then be subject to such further exceptions and/or requirements as may be deemed necessary. [] (I) An ALTA/NSPS survey of recent date, which complies with the current minimum standard detail requirements for ALTA/HSPS land title surveys, must be submitted to the Company for review. This Commitment will then be subject to such further exceptions and/or requirements as may be deemed necessary. [7 (J) The following LLC documentation is required: (i) a copy of the Articles of Organization (ii) a copy of the Operating Agreement, if applicable (iii) a Certificate of Good Standing and/or other evidence of current Authority to Conduct Business within the State (iv) express Company Consent to the current transaction Form No. 1068-2 Commitment No.:NCS-882726-ONT1 ALTA Plain Language Commitment Page Number:8 [] (K) The following partnership documentation is required : (i) a copy of the partnership agreement, including all applicable amendments thereto (ii) a Certificate of Good Standing and/or other evidence of current Authority to Conduct Business within the State (iii) express Partnership Consent to the current transaction [] (L) The following corporation documentation is required: (i) a copy of the Articles of Incorporation (ii) a copy of the Bylaws, including all applicable Amendments thereto (iii) a Certificate of Good Standing and/or other evidence of current Authority to Conduct Business within the State (iv) express Corporate Resolution consenting to the current transaction [] (M) Based upon the Company's review of that certain partnership/operating agreement dated Not disclosed for the proposed insured herein, the following requirements must be met: Any further amendments to said agreement must be submitted to the Company, together with an affidavit from one of the general partners or members stating that it is a true copy, that said partnership or limited liability company is in full force and effect, and that there have been no further amendments to the agreement. This Commitment will then be subject to such further requirements as may be deemed necessary. [] (N) A copy of the complete lease, as referenced in Schedule A, #3 herein, together with any amendments and/or assignments thereto, must be submitted to the Company for review, along with an affidavit executed by the present lessee stating that it is a true copy, that the lease is in full force and effect, and that there have been no further amendments to the lease. This Commitment will then be subject to such further requirements as may be deemed necessary. [X] (0) Approval from the Company's Underwriting Department must be obtained for issuance of the policy contemplated herein and any endorsements requested thereunder. This Commitment will then be subject to such further requirements as may be required to obtain such approval. [] (P) Potential additional requirements, if ALTA Extended coverage is contemplated hereunder, and work on the land has commenced prior to close, some or all of the following requirements, and any other requirements which may be deemed necessary, may need to be met: [] (Q) The Company's "Indemnity Agreement I" must be executed by the appropriate parties. [] (R) Financial statements from the appropriate parties must be submitted to the Company for review. [] (S) A copy of the construction contract must be submitted to the Company for review. [] (T) An inspection of the land must be performed by the Company for verification of the phase of construction. [] (U) The Company's "Mechanic's Lien Risk Addendum" form must be completed by a Company employee, based upon information furnished by the appropriate parties involved. Form No. 1068-2 Commitment No.:NCS-882726-ONTI ALTA Plain Language Commitment Page Number:9 SCHEDULE B SECTION TWO EXCEPTIONS Any policy we issue will have the following exceptions unless they are taken care of to our satisfaction. The printed exceptions and exclusions from the coverage of the policy or policies are set forth in Exhibit A attached. Copies of the policy forms should be read. They are available from the office which issued this Commitment. A. General and special taxes and assessments for the fiscal year 2018-2019, a lien not yet due or payable. 1. General and special taxes and assessments for the fiscal year 2017-2018. First Installment: $8,437.20, PAID WITH PENALTY Penalty: $843.72 Second Installment: $8,437.16, OPEN Penalty: $0.00 Tax Rate Area: 005016 A. P. No.: 0169-351-04-0-000 2. The lien of supplemental taxes, if any, assessed pursuant to Chapter 3.5 commencing with Section 75 of the California Revenue and Taxation Code. 3. An easement for the purpose shown below and rights incidental thereto as set forth in a document Purpose: pipes, ditches and conduits Recorded: December 28, 1874 in Book N, Page 352 of Miscellaneous Records Affects: as described therein. Reference is also made to Deed recorded December 23, 1899 in Book 278, Page 90 of Deeds and in Book 213, Page 203 of Deeds, October 16, 1903 in Book 339, Page 65 of Deeds and recorded May 14, 1908 in Book 411, Page 238 of Deeds. The location of the easement cannot be determined from record information. 4. An easement for pipe line and incidental purposes, recorded June 22, 1928 as Book 380, Page 370 of Official Records. In Favor of: Joseph M. Taylor, et al Affects: as described therein The location of the easement cannot be determined from record information. 5. This item has been intentionally deleted. 6. The terms and provisions contained in the document entitled "Agreement for Maintenance of Pipe Line" recorded February 09, 1949 as Book 2358, Page 394 of Official Records. Form No. 1068-2 Commitment No.:NCS-882726-ONT1 ALTA Plain Language Commitment Page Number.10 7. An easement for water line and meter and incidental purposes in the document recorded May 14, 1958 as Book 4507, Page 593 of Official Records. The location of the easement cannot be determined from record information. 8. A deed of trust to secure an original indebtedness of$1,000,000.00 recorded May 09, 2006 as Instrument No. 2006-0315093 of Official Records. Dated: February 27, 2006 Trustor: Larry G. Adams and Cheryl A. Nelson, husband and wife, as joint tenants Trustee: Commonwealth Land Title Company, a California Corporation Beneficiary: Nancy Jo DeMaggio, a married woman, as her sole and separate property and Sally E. Tripp, a married woman, as her sole and separate property A document recorded February 13, 2009 as Instrument No. 2009-0063356 of Official Records provides that Stanley 3. Yates was substituted as trustee under the deed of trust. 9. The fact that the land lies within the boundaries of the Redlands Redevelopment Project Area, as disclosed by the document retarded December 05, 2007 as Instrument No. 2007-0680912 of Official Records. 10. Intentionally Deleted 11. Rights of parties in possession. 12. A lease dated Not Set Out, executed by The City of Redlands as lessor and Larry Adams, dba Buy Any Tire Depot, and Transmission Dynamics, Inc., dba AAMCO Transmission as lessee, recorded December 7, 2017 as Instrument No. 2017-0519018 of Official Records. Defects, liens, encumbrances or other matters affecting the leasehold estate, whether or not shown by the public records are not shown herein. Form No. 1068-2 Commitment No.:NCS-882726-ONT1 ALTA Plain Language Commitment Page Number:it INFORMATIONAL NOTES i ALERT- CA Senate Bill 2 imposes an additional fee of$75 up to $225 at the time of recording on certain transactions effective January 1, 2018. Please contact your First American Title representative for more information on how this may affect your closing. 1. According to the latest available equalized assessment roll in the office of the county tax assessor, there is located on the land a(n) Commercial Structure known as 1267 West Redlands Boulevard, Redlands, CA. 2. According to the public records, there has been no conveyance of the land within a period of twenty-four months prior to the date of this report, except as follows: None 3. This preliminary report/commitment was prepared based upon an application for a policy of title insurance that identified land by street address or assessor's parcel number only. It is the responsibility of the applicant to determine whether the land referred to herein is in fact the land that is to be described in the policy or policies to be issued. The map attached, if any, may or may not be a survey of the land depicted hereon. First American Title Insurance Company expressly disclaims any liability for loss or damage which may result from reliance on this map except to the extent coverage for such loss or damage is expressly provided by the terms and provisions of the title insurance policy, if any, to which this map is attached. *****To obtain wire instructions for deposit of funds to your escrow file please contact your Escrow Dicer.***** Form No. 1068-2 Commitment No.:NCS-882726-ON-Fl ALTA Plain Language Commitment Page Number:12 CONDITIONS X. DEFINITIONS (a)"Mortgage" means mortgage, deed of trust or other security instrument. (b)"Public Records" means title records that give constructive notice of matters affecting the title according to the state law where the land is located. 2. LATER DEFECTS The Exceptions in Schedule B - Section Two may be amended to show any defects, liens or encumbrances that appear for the first time in the public records or are created or attached between the Commitment Date and the date on which all of the Requirements (a) and (c) of Schedule B - Section One are met. We shall have no liability to you because of this amendment. 3. EXISTING DEFECTS If any defects, liens or encumbrances existing at Commitment Date are not shown in Schedule B, we may amend Schedule B to show them. If we do amend Schedule B to show these defects, liens or encumbrances, we shall be liable to you according to Paragraph 4 below unless you Knew of this information and did not tell us about it in writing. 4. LIMITATION OF OUR LIABILITY Our only obligation is to issue to you the Policy referred to in this Commitment, when you have met its Requirements. If we have any liability to you for any loss you incur because of an error in this Commitment, our liability will be limited to your actual loss caused by your relying on this Commitment when you acted in good faith to: comply with the Requirements shown in Schedule B - Section One or eliminate with our written consent any Exceptions shown in Schedule B - Section Two. We shall not be liable for more than the Policy Amount shown in Schedule A of this Commitment and our liability is subject to the terms of the Policy form to be issued to you. S. CLAIMS MUST BE BASED ON THIS COMMITMENT Any claim, whether or not based on negligence, which you may have against us concerning the title to the land must be based on this commitment and is subject to its terms. Form No. 1068-2 Commitment No.:NCS-882726-ONTI ALTA Plain Language Commitment Page Number:13 F.irstAmerican Wills Privacy Information We Are Committed to Safeguarding Customer Information In order to better serve your needs now and in the future,we may ask you to provide us with certain information.We understand that you may be concerned about what we will do with such information-particularly any personal or financial Information,We agree that you have a right to know how we will utilize the personal information you provide to us.Therefore,together with our subsidiaries we have adopted this Privacy Polity to govern the use and handling of your personal Information. Applicability This Privacy Policy governs our use of the information that you provide to us.It does not govern the manner in which we may use information we have obtained from any other source,such as information obtained from a public record or from another person or entity.First American has also adopted broader guidelines that govern our use of personal Information regardless of its source. First American calls these guidelines its Fair Information Values. Types of Information Depending upon which of our services you are utilizing,the types of nonpublic personal information that we may collect Include: • Information we receive from you on applications,forms and in other communications to us,whether in writing,in person,by telephone or any other means; • Information about your transactions with us,our affiliated companies,or others;and • Information we receive from a consumer reporting agency. Use of Information We request Information from you for our own legitimate business purposes and not for the benefit of any nonaffiliated party.Therefore,we will not release your information to nonaffiliated parties except:(1)as necessary for us to provide the product or service you have requested or us;or(2)as permitted by law.We may,however,store such information indefinitely,including the period after which any customer relationship has ceased.Such Information may be used for any internal purpose,such as quality control efforts or customer analysis.We may also provide all of the types of nonpublic personal Information listed above to one or more of our affiliated companies.Such affiliated companies include financial service providers,such as title Insurers,property and casualty Insurers,and trust and investment advisory companies,or companies involved in real estate services,such as appraisal companies,home warranty companies and escrow companies.Furthermore, we may also provide all the Information we collect,as described above,to companies that perform marketing services on our behalf,on behalf of our affiliated companies or to other financial institutions with whom we or our affiliated companies have joint marketing agreements. Former Customers Even if you are no longer our customer,our Privacy Policy will continue to apply to you. Confidentiality and Security We will use our best efforts to ensure that no unauthorized parties have access to any of your Information,We restrict access to nonpublic personal Information about you to those individuals and entities who need to know that information to provide products or services to you.We will use our best efforts to train and oversee our employees and agents to ensure that your information will be handled responsibly and in accordance with this Privacy Policy and First American's Fair Information Values.We currently maintain physical,electronic,and procedural safeguards that comply with federal regulations to guard your nonpublic personal information. Information Obtained Through Our Web Site First American Financial Corporation Is sensitive to privacy issues on the Internet.We believe it is important you know how we treat the information about you we receive on the Internet. In general,you can visit First American or its affiliates'Web sites on the World Wide Web without telling us who you are or revealing any information about yourself.Our Web servers collect the domain names,not the e-mail addresses,of visitors.This information is aggregated to measure the number of visits,average time spent on the site,pages viewed and similar Information.First American uses this information to measure the use of our site and to develop Meas to improve the content of our site There are times,however,when we may need information from you,such as your name and email address.When information is needed,we will use our hest efforts to let you know at the time of collection how we will use the personal information.Usually,the personal information we collect is used only by us to respond to your inquiry,process an order or allow you to access specific account profile information.If you choose to share any personal Information with us,we will only use it In accordance with the policies outlined above. Business Relationships First American Financial Corporation's site and its affiliates'sites may contain links to other Web sites.While we try to link only to sites that share our high standards and respect for privacy,we are not responsible for the content or the privacy practices employed by other sites. Cookies Some of First American's Web sites may make use of"cookie"technology to measure site activity and to customize Information to your personal tastes.A cookie is an element or data that a Web site can send to your browser,which may then store the cookie on your hard drive. FirstAm.rom uses stored cookies.The goal of this technology is to better serve you when visiting our site,save you time when you are here and to provide you with a more meaningful and productive Web site experience. ----------------•------------•-------------------------------------- Fair Information Values Fairness We consider consumer expectations about their privacy in all our businesses.We only offer products and services that assure a favorable balance between consumer benefits and consumer privacy. Public Record We believe that an open public record creates significant value for society,enhances consumer choice and creates consumer opportunity.We actively support an open public record and emphasize its importance and contribution to our economy. Use We believe we should behave responsibly when we use information about a consumer in our business.We will obey the laws governing the collection,use and dissemination of data. Accuracy We will take reasonable steps to help assure the accuracy of the data we collect,use and disseminate.Where possible,we will take reasonable steps to correct inaccurate information. When,as with the public record,we cannot correct Inaccurate Information,we will take all reasonable steps to assist consumers in identifying the source of the erroneous data so that the consumer can secure the required corrections. Education We endeavor to educate the users of our products and services,our employees and others in our industry about the Importance of consumer privacy.We will instruct our employees on our fair information values and on the responsible collection and use of data.We will encourage others in our Industry to collect and use information In a responsible manner. Security We will maintain appropriate facilities and systems to protect against unauthorized access to and corruption of the data we maintain. Form 50-PRIVACY(9/1/10) Page i of 1 Privacy Information(2001-2010 First American Financial Corporation) Form No. 1068-2 Commitment No.:NCS-882726-ONT1 ALTA Plain Language Commitment Page Number:14 EXHIBIT A LIST OF PRINTED EXCEPTIONS AND EXCLUSIONS(BY POLICY TYPE) 1. CALIFORNIA LAND TITLE ASSOCIATION STANDARD COVERAGE POLICY-1990 SCHEDULE B 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 notice 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. 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. f: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(1)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) whether or not recorded in the public records at Date of Policy,but 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 insured mortgage or for the estate or interest insured by this policy. 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 claim,which arises out of the transaction vesting in the insured the estate or interest insured by their policy or the transaction creating the interest of the insured lender,by reason of the operation of federal bankruptcy,state insolvency or similar creditors'rights laws. 2. AMERICAN LAND TITLE ASSOCIATION OWNER'S POLICY FORM B-1970 SCHEDULE OF EXCLUSIONS FROM COVERAGE L Any law,ordinance or governmental regulation(including but not limited to building and zoning ordinances)restricting or regulating or prohibiting the occupancy,use or enjoyment of the land,or regulating the character,dimensions or location of any improvement now or hereafter erected on the land,or prohibiting a separation in ownership or a reduction in the dimensions of area of the land,or the effect of any violation of any such law,ordinance or governmental regulation. 2. Rights of eminent domain or governmental rights of police power unless notice of the exercise of such rights appears in the public records at Date of Policy. 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 and not shown by the public records but known to the insured claimant either at Date of Policy or at the date such claimant acquired an estate or interest insured by this policy and not disclosed in writing by the insured claimant to the Company prior to the date such insured claimant became an insured hereunder;(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. 3. AMERICAN LAND TITLE ASSOCIATION OWNER'S POLICY FORM B-1970 WITH REGIONAL EXCEPTIONS When the American Land Title Association policy is used as a Standard Coverage Policy and not as an Extended Coverage Policy the exclusions set forth in paragraph 2 above are used and the following exceptions to coverage appear in the policy. SCHEDULES Form No. 1068-2 Commitment No.:NCS-882726-ONT1 ALTA Plain Language Commitment Page Number:15 This policy does not insure against loss or damage by reason of the matters shown in parts one and two following: Part One 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. 2. Any facts,rights,interests,or claims which are not shown by the public records but which could be ascertained by an inspection of said land or by making inquiry of persons in possession thereof. 3. Easements,claims of easement or encumbrances 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 public records. 5. Unpatented mining claims;reservations or exceptions in patents or in Acts authorizing the issuance thereof;water rights,claims or title to water. 6. Any lien,or right to a lien,for services,labor or material heretofore or hereafter furnished,imposed by law and not shown by the public records. 4.AMERICAN LAND TITLE ASSOCIATION LOAN POLICY-1970 WITH A.L.T.A.ENDORSEMENT FORM 1 COVERAGE SCHEDULE OF EXCLUSIONS FROM COVERAGE 1. Any law,ordinance or governmental regulation(including but not limited to building and zoning ordinances)restricting or regulating or prohibiting the occupancy,use or enjoyment of the land,or regulating the character,dimensions or location of any improvement now or hereafter erected on the land,or prohibiting a separation in ownership or a reduction in the dimensions or area of the land,or the effect of any violation of any such law ordinance or governmental regulation. 2. Rights of eminent domain or governmental rights of police power unless notice of the exercise of such rights appears in the public records at Date of Policy. 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 and not shown by the public records but known to the insured claimant either at Date of Policy or at the date such claimant acquired an estate or interest insured by this policy or acquired the insured mortgage and not disclosed in writing by the insured claimant to the Company prior to the date such insured claimant became an insured hereunder,(c)resulting in no loss or damage to the insured claimant;(d)attaching or created subsequent to Date of Polity(except to the extent insurance is afforded herein as to any statutory lien for 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). 4. Unenforceability of the lien of the insured mortgage because of failure of the insured at Date of Polity or of any subsequent owner of the indebtedness to comply with applicable"doing business"laws of the state in which the land is situated. S.AMERICAN LAND TITLE ASSOCIATION LOAN POLICY-1970 WITH REGIONAL EXCEPTIONS When the American Land Title Association Lenders Policy is used as a Standard Coverage Policy and not as an Extended Coverage Policy,the exclusions set forth in paragraph 4 above are used and the following exceptions to coverage appear in the policy. SCHEDULE 6 This policy does not insure against loss or damage by reason of the matters shown in parts one and two following: Part One 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. 2. Any facts,rights,interests,or claims which are not shown by the public records but which could be ascertained by an inspection of said land or by making inquiry of persons in possession thereof. 3. Easements,claims of easement or encumbrances 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 public records. 5. Unpatented mining claims;reservations or exceptions in patents or in Acts authorizing the issuance thereof;water rights,claims or title to water. 6. Any lien,or right to a lien,for services,labor or material theretofore or hereafter furnished,imposed by law and not shown by the public records. 6.AMERICAN LAND TITLE ASSOCIATION LOAN POLICY-1992 WITH A.L.T.A.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. Form No. 1068-2 Commitment No.:NCS-882726-ONT1 ALTA Plain Language Commitment Page Number:16 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)whether or not recorded in the public records at Date of Policy,but 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 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 the 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 polity,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 of 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. 7.AMERICAN LAND TITLE ASSOCIATION LOAN POLICY-1992 WITH REGIONAL EXCEPTIONS When the American Land Title Association policy is used as a Standard Coverage Policy and not as an Extended Coverage Policy the exclusions set forth in paragraph 6 above are used and the following exceptions to coverage appear in the policy. SCHEDULE B 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. faxes 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. 2. Any facts,rights,interests,or claims which are not shown by the public records but which could be ascertained by an inspection of said land or by making inquiry of persons in possession thereof. 3. Easements,claims of easement or encumbrances 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 public records. 5. Unpatented mining claims;reservations or exceptions in patents or in Acts authorizing the issuance thereof;water rights,claims or title to water. 6. Any lien,or right to a lien,for services,labor or material theretofore or hereafter furnished,imposed by law and not shown by the public records. 8.AMERICAN LAND TITLE ASSOCIATION OWNER'S POLICY-1992 EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this polity and the Company will not pay loss or damage,casts,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 Form No. 1068-2 Commitment No.:NCS-882726-ONTI ALTA Plain Language Commitment Page Number:17 (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, 9.AMERICAN LANA TITLE ASSOCIATION OWNER'S POLICY-1992 WITH REGIONAL EXCEPTIONS When the American Land Title Association polity is used as a Standard Coverage Policy and not as an Extended Coverage Policy the exclusions set forth in paragraph 8 above are used and the following exceptions to coverage appear in the policy. SCHEDULE B 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: Part One: I. 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. 2. Any facts,rights,interests,or claims which are not shown by the public records but which could be ascertained by an inspection of said land or by making inquiry of persons in possession thereof. 3. Easements,claims of easement or encumbrances 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 public records. 5. Unpatented mining claims;reservations or exceptions in patents or in Acts authorizing the issuance thereof;water rights,claims or title to water. 6. Any lien,or right to a lien,for services,labor or material theretofore or hereafter furnished,imposed by law and not shown by the public records. ALTA RESIDENTIAL TITLE INSURANCE POLICY(6-1-87) EXCLUSIONS In addition to the Exceptions in Schedule 8,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: (a)and use (b)improvements on the land (c)and division (d)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)a notice of exercising the right appears in the public records on the Policy Date (b)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: (a)that are created,allowed,or agreed to by you (b)that are known to you,but not to us,on the Policy Date--unless they appeared in the public records (c)that result in no loss to you (d)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: (a)to any land outside the area specifically described and referred to in Item 3 of Schedule A OR (b)in streets,alleys,or waterways that touch your land This exclusion does not limit the access coverage in Item 5 of Covered Title Risks. 11.EAGLE PROTECTION OWNER'S POLICY CLTA HOMEOWNER'S POLICY OF TITLE INSURANCE-1998 ALTA HOMEOWNER'S POLICY OF TITLE INSURANCE-1998 Covered Risks 14(Subdivision Law Violation). 15(Building Permit).16(Zoning)and 18(Encroachment of boundary wails or fences)are subject to Deductible Amounts and Maximum Dollar Limits of Liability Form No. 1068-2 Commitment No.:NCS-882726-ONT1 ALTA Plain Language Commitment Page Number:18 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 ordinances,laws and regulations concerning: a. building b. zoning c.land use d. improvements on the land e.land division f. environmental protection This exclusion does not apply to violations or the enforcement of these matters if notice of the violation or enforcement appears in the Public Records at the Policy Date. This exclusion does not limit the coverage described in Covered Risk 14, 15, 16, 17 or 24. 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 apply to violations of building codes if notice of the violation appears in the Public Records at the Policy Date. 3. The right to take the Land by condemning it, unless: a.a notice of exercising the right appears in the Public Records at the Policy Date;or b.the taking happened before the Policy Date and is binding on You if You bought the Land without Knowing of the taking. 4. Risks: a.that are created,allowed,or agreed to by You,whether or not they appear in the Public Records; b.that are Known to You at the Policy Date, but not to Us,unless they appear 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.d,22,23,24 or 25. S. 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 18. 12.THIRD GENERA'T'ION EAGLE LOAN POLICY AMERICAN LAND TITLE ASSOCIATION EXPANDED COVERAGE RESIDENTIAL LOAN POLICY(1/01/08) 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 (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 11,16,17, 18, 19,20,21,22,23,24,27 or 28);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 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.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)ar 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. 13.AMERICAN LAND TITLE ASSOCIATION LOAN POLICY-2006 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 Form No. 1068-2 Commitment No.:NCS-882726-ONT1 ALTA Plain Language Commitment Page Number:14 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 (1)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 (€v)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 B. 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,or14);or (e)resulting in loss or damage that would not have been sustained€F 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 Pal icy 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), 14.AMERICAN LAND TITLE ASSOCIATION LOAN 1POLICY-2006 WITH REGIONAL EXCEPTIONS When the American Land Title Association policy is used as a Standard Coverage Policy and not as an Extended Coverage Policy the exclusions set forth In paragraph 13 above are used and the following exceptions to coverage appear in the polity. SCHEDULE B 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. (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. 15.AMERICAN LAND TITLE ASSOCIATION OWNER'S POLICY-2006 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. Form No. 1068-2 Commitment No.:NCS-882726-ONTI ALTA Plain Language Commitment Page Number:20 (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 S. 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 Polity(however,this does not modify or limit the coverage provided under Covered Risks 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. S. 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. 16.AMERICAN LAND TITLE ASSOCIATION OWNER'S POLICY-2006 WITH REGIONAL EXCEPTIONS When the American Land Title Association policy is used as a Standard Coverage Policy and not as an Extended Coverage Policy the exclusions set forth in paragraph 15 above are used and the following exceptions to coverage appear in the polity. SCHEDULE B 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. (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. ♦ 7 ti •f LCA First American Title Insurance Company National Commercial Services 3281 E Guasti Road, Suite 440, Ontario, CA 91761 Phone Number: (909)510-6200 FAX: (877)461-2088 Christina Corral Direct Phone Number:(909)slo-5821 Escrow Assistant FAX:877-461-2088 December 20, 2017 City of Redlands, a municipal corporation Cheryl A. Nelson 35 Cajon Street 6917 Dover Court Redlands, CA 92373 Highland, CA 92346 ESCROW ACCEPTANCE LETTER Re: File No: NCS-882726-ONT1 Property: 1267 West Redlands Boulevard , Redlands, CA 92373 Ladies and Gentlemen: This letter shall serve as notification of the opening of escrow on the above referenced property. The escrow opening date is December 7, 2017, the date on which we received a fully executed copy of Purchase and Sale Agreement and Joint Escrow Instructions, and Tenant Relocation Incentives Agreement dated December 5, 2017, by and between Cheryl A. Nelson ("Seller") and City of Redlands, a municipal corporation, ("Buyer"). In addition we are in receipt of the Buyer's deposit in the amount of$10,000.00. First American Title Insurance Company hereby accepts its designation as Escrow Holder for the parties insofar as the terms and conditions contained in the Agreement pertain to Escrow Holder to close this escrow. The parties will hand you all of the documents and funds and comply with all of the terms, conditions and provisions called for therein. First American Title Insurance Company General Provisions are attached hereto and incorporated herein by this reference. In the event we can be of further assistance, at this time, please do not hesitate to contact the undersigned. Sincerely, First American Title Insurance Company Kelly Simoneau Senior Commercial Escrow Officer KS/CC Page 1 of 6 cc/02/05/2018 Escrow General Provisions-REVISED JULY 22, 2014 Receipt of these provisions deems acceptance of the terms. Please read for general information about the escrow process. 1. SPECIAL DISCLOSURES: A. DEPOSIT OF FUNDS&DISBURSEMENTS Unless directed in writing to establish a separate, interest-bearing account together with all necessary taxpayer reporting information, all funds shall be deposited in general escrow accounts in a federally insured financial institution including those affiliated with Escrow Holder("depositories'}. All disbursements shall be made by Escrow Holder's check or by wire transfer unless otherwise instructed in writing. The Good Funds Law (California Insurance Code 12413.1) mandates that Escrow Holder may not disburse funds until the funds are, in fact, available in Escrow Holder's account. Wire transfers are immediately disbursable upon confirmation of receipt. Funds deposited by a cashier's or certified check are generally available on the next banking day following deposit. Funds deposited by a personal check and other types of instruments may not be available until confirmation from Escrow Holder's bank which can vary from 2 to 10 days. B. DISCLOSURE OF POSSIBLE BENEFITS TO ESCROW HOLDER As a result of Escrow Halder maintaining its general escrow accounts with the depositories, Escrow Holder may receive certain financial benefits such as an array of bank services, accommodations, loans or other business transactions from the depositories ("collateral benefits). All collateral benefits shall accrue to the sole benefit of Escrow Holder and Escrow Holder shall have no obligation to account to the parties to this escrow for the value of any such collateral benefits. C. MISCELLANEOUS FEES Escrow Halder may incur certain additional costs on behalf of the parties for services performed, or fees charged, by third parties. The fees charged by Escrow Holder for services including, but not limited to, wire transfers, overnight delivery/courier services, etc. may include a mark up over the direct cost of such services to reflect the averaging of direct, administrative and overhead charges of Escrow Holder for such services which shall, in no event, exceed $10 for each markup. D. METHOD TO DELIVER PAYOFF TO LENDERS/LIEN HOLDERS To minimize the amount of interest due on any existing loan or lien, Escrow Holder will deliver the payoff funds to the lender/lienholder as soon as Escrow Holder is able after confirmation of recordation/close of escrow and as demanded by the I ender/l ien holder using (a) personal delivery, (b) wire transfer, or(c) overnight delivery service, unless otherwise directed in writing by the affected party. Certain payments such as home equity line of credit payoffs ("HELOCTO may require additional time to process. 2. "CLOSE OF ESCROW"/PRORATIONS&ADJUSTMENTS The term "close of escrow" means the date on which documents are recorded. All prorations and/or adjustments shall be made to the close of escrow based on the number of actual days, unless otherwise instructed in writing. 3. CONTINGENCY PERIODS Escrow Holder shall not be responsible for monitoring contingency time periods between the parties. The parties shall execute such documents as may be requested by Escrow Holder to confirm the status of any such periods. 4. REPORTS a. Preliminary Report-Escrow Holder has neither responsibility nor liability for any title search that may be performed in connection with the issuance of a preliminary report. b. Other Reports-As an accommodation, Escrow Holder may agree to transmit orders for inspection, termite, disclosure and other reports if requested, in writing or orally, by the parties or their agents. Escrow Holder shall deliver copies of any such reports as directed. Escrow Holder is not responsible for reviewing such reports or advising the parties of the content of same. S. INFORMATION FROM AFFILIATED COMPANIES Escrow Holder may provide the parties'information to and from its affiliates in connection with the offering of products and services from these affiliates. THIS COMPANY CONDUCTS ESCROW BUSINESS UNDER CERTIFICATE OF AUTHORITY ISSUED BY THE STATE OF CALIFORNIA DEPARTMENT OF INSURANCE. O 2014 First American Title Insurance Company and/or its affiliates. Page 1 of 4 All rights reserved.o NYSE: FAF Page 2 of 6 Kelly Simoneau/cc/02/05/2018/NCS-882726-OWFl/30 6. RECORDATION OF DOCUMENTS Escrow Halder is authorized to record documents delivered through escrow which are necessary or proper for the issuance of the requested title insurance policy(les). Buyer will provide a completed Preliminary Change of Ownership Report form ("PCOR'�. If Buyer fails to provide the PCOR, Escrow Holder shall close escrow and charge Buyer any additional fee incurred for recording the documents without the PCOR. Escrow Holder is released from any liability In connection with same. 7. PERSONAL PROPERTY TAXES No examination, UCC search, insurance as to personal property and/or the payment of personal property taxes is required unless otherwise instructed in writing. 8. REAL PROPERTY TAXES Real property taxes are prorated based on the most current available tax statement from the tax collector's office. Supplemental taxes may be assessed as a result of a change in ownership or completion of construction. Adjustments due either party based on the actual new tax bill issued after close of escrow or a supplemental tax bill will be made by the parties outside of escrow and Escrow Halder is released of any liability in connection with such adjustments. The first Installment of California real property taxes is due November 1st(delinquent December 10th) and the second installment is due February 1st(delinquent April 10th). If a tax bill is not received from the County at least 30 days prior to the due date, buyer should contact the County Tax Collector's office and request one. Escrow Holder is not responsible for same. 9. CANCELLATION OF ESCROW a. Any party desiring to cancel this escrow shall deliver written notice of cancellation to Escrow Holder. Within a reasonable time after receipt of such notice, Escrow Holder shall send by regular mail to the address on the escrow instructions, one copy of said notice to the other party(ies). Unless written objection to cancellation is delivered to Escrow Holder by a party within 10 days after date of mailing, Escrow Holder is authorized, at its option, to comply with the notice and terminate the escrow. If a written objection is received by Escrow Holder, Escrow Holder is authorized, at its option, to hold all funds and documents in escrow (subject to the Funds Held in Escrow fee) and to take no other action until otherwise directed by either the parties' mutual written instructions or a final order of a court of competent jurisdiction. If no action is taken on this escrow within 6 months after the closing date specified in the escrow instructions, Escrow Holder's obligations shall, at its option, terminate. Upon termination of this escrow, the parties shall pay all fees, charges and reimbursements due to Escrow Holder and all documents and remaining funds held in escrow shall be returned to the parties depositing same. b. Notwithstanding the foregoing, upon receipt of notice of cancellation by a seller in a transaction subject to the Home Equity Sales Contract law (CC §1695 et seq.), Escrow Holder shall have the right to unilaterally cancel the escrow and may return all documents and funds without consent by or notice to the buyer. 10.CONFLICTING INSTRUCTIONS& DISPUTES If Escrow Holder becomes aware of any conflicting demands or claims concerning this escrow, Escrow Holder shall have the right to discontinue all further acts on Escrow Holder's part until the conflict is resolved to Escrow Holder's satisfaction. Escrow Holder has the right at its option to file an action in interpleader requiring the parties to litigate their claims/rights. If such an action is filed,the parties jointly and severally agree (a) to pay Escrow Holder's cancellation charges, costs (including the Funds Held in Escrow fee) and reasonable attorneys'fees, and (b) that Escrow Holder is fully released and discharged from all further obligations under the escrow. If an action is brought involving this escrow and/or Escrow Holder, the party(ies) involved in the action agree to indemnify and hold the Escrow Holder harmless against liabilities, damages and costs incurred by Escrow Holder(including reasonable attorneys'fees and costs) except to the extent that such liabilities, damages and costs were caused by the negligence or willful misconduct of Escrow Holder. 11.FUNDS HELD IN ESCROW When funds remain in escrow over 90 days after either close of escrow or estimated close of escrow, a monthly holding fee of$25 shall be imposed by Escrow Holder that is to be charged against the funds held. 12.USURY Escrow Holder is not to be concerned with usury as to any loans or encumbrances in this escrow and is hereby released of any responsibility and/or liability therefore. THIS COMPANY CONDUCTS ESCROW BUSINESS UNDER CERTIFICATE OF AUTHORITY ISSUED BY THE STATE OF CALIFORNIA DEPARTMENT OF INSURANCE. 9 2014 First American Title Insurance Company and/or its affiliates. Page 2 of 4 Ail rights reserved.® NYSE: FAF Page 3 of 6 Kelly Simoneau cc/02/05/2018/NCS-882726-ONTI/30 13.AMENDMENTS TO ESCROW INSTRUCTIONS Any amendment to the escrow instructions must be in writing, executed by all parties and accepted by Escrow Holder. Escrow Holder may, at its sole option, elect to accept and act upon oral instructions from the parties. If requested by Escrow Holder the parties agree to confirm said instructions in writing as soon as practicable. The escrow instructions as amended shall constitute the entire escrow agreement between the Escrow Holder and the parties hereto with respect to the subject matter of the escrow. 14.FIRE, HAZARD OR LIABILITY INSURANCE POLICIES In all matters relating to fire, hazard or liability insurance, Escrow Holder may assume that each policy is in force and that the necessary premium has been paid. Escrow Holder is not responsible for obtaining fire, hazard or liability insurance, unless Escrow Holder has received specific written instructions to obtain such insurance prior to close of escrow from the parties or their respective lenders. IS.COPIES OF DOCUMENTS; ELECTRONIC SIGNATURES;AUTHORIZATION TO RELEASE Escrow Holder is authorized to rely upon copies of documents, which include facsimile, electronic, NCR, or photocopies as if they were an originally executed document. Escrow Holder may agree to accept electronically signed documents from a platform or program approved by Escrow Holder. If requested by Escrow Holder, the originals of such documents and/or original signatures shall be delivered to Escrow Holder. Escrow Holder may withhold documents and/or funds due to the party until such originals are delivered. Documents to be recorded MUST contain original signatures. Escrow Holder may furnish copies of any and all documents to the lender(s), real estate broker(s), attorney(s) and/or accountant(s) involved in this transaction upon their request. Delivery of documents by escrow to a real estate broker or agent who is so designated in the purchase agreement shall be deemed delivery to the principal. 16.EXECUTION IN COUNTERPART The escrow instructions and any amendments may be executed in one or more counterparts, each of which shall be deemed an original, and all of which taken together shall constitute the same instruction. 17.TAX REPORTING, WITHHOLDING &DISCLOSURE The parties are advised to seek independent advice concerning the tax consequences of this transaction, including but not limited to, their withholding, reporting and disclosure obligations. Escrow Holder does not provide tax or legal advice and the parties agree to hold Escrow Halder harmless from any loss or damage that the parties may incur as a result of their failure to comply with federal and/or state tax laws. WITHHOLDING OBLIGA77ONSARE THEEXCLUSII/E OBLIGATIONS OF THE PARTIES. ESCROW HOLDER IS NOT RESPONSIBLE TO PERFORM THESE OBLIGATIONS UNLESS ESCROW HOLDER AGREES IN WRITING. A. TAXPAYER IDENTIFICATION NUMBER REPORTING Federal law requires Escrow Holder to report seller's social security number or tax identification number(both numbers are hereafter referred to as the"TIN"), forwarding address, and the gross sales price to the Internal Revenue Service ("IRS's. To comply with the IDSA PATRIOT Act, certain taxpayer identification information (including, but not limited to, the TIN) may be required by Escrow Holder from certain persons or entities involved (directly or indirectly) in the transaction prior to closing. Escrow cannot be closed nor any documents recorded until the information is provided and certified as to its accuracy to Escrow Holder. The parties agree to promptly obtain and provide such information as requested by Escrow Holder. B. STATE WITHHOLDING &REPORTING In accordance with Section 18662 of the Revenue and Taxation Code (R&TC), a buyer may be required to withhold an amount equal to 3 1/3% (,0333) of the sale price, or an optional gain on sale withholding amount certified by the seller in the case of a disposition of California real property interest by either; 1. A seller who is an individual, trust, estate, or when the disbursement instructions authorize the proceeds to be sent to a financial intermediary of the sellers. 2. A corporate seller that has no permanent place of business in California immediately after the transfer of title to the California property. THIS COMPANY CONDUCTS ESCROW BUSINESS UNDER CERTIFICATE OF AUTHORITY ISSUED BY THE STATE OF CALIFORNIA DEPARTMENT OF INSURANCE. ©2014 First American Tide Insurance Company and/or its affiliates. Page 3 of 4 All rights reserved.V NYSE: FAF Page 4 of 6 Kelly 5imoneau/cc/02/05/2018/NCS-882726-OM1/30 The buyer may become subject to penalty for failure to withhold an amount equal to the greater of 10 percent of the amount required to be withheld or five hundred dollars ($500). However, notwithstanding any other provision included in the California statutes referenced above, no buyer will be required to withhold any amount or be subject to penalty for failure to withhold if any of the following applies: 1. The sale price of the California real property conveyed does not exceed one hundred thousand dollars ($100,000). 2. The seller executes a written certificate under the penalty of perjury certifying that the seller is a corporation with a permanent place of business in California. 3. The seller, who is an individual, trust, estate, or a corporation without a permanent place of business in California, executes a written certificate under the penalty of perjury of any of the following: a. The California real property being conveyed is the seller's or decedent's principal residence (within the meaning of Section 121 of the Internal Revenue Code (IRC)). b. The last use of the property being conveyed was by the transferor as the transferor's principal residence (within the meaning of IRC Section 121). c. The California real property being conveyed is, or will be, exchanged for property of like kind (within the meaning of IRC Section 1031), but only to the extent of the amount of gain not required to be recognized for California income tax purposes under IRC Section 1031. d. The California real property has been compulsorily or involuntarily converted (within the meaning of IRC Section 1033) and the seller intends to acquire property similar or related in service or use so as to be eligible for nonrecognition of gain for California income tax purposes under IRC Section 1033. e. The California real property transaction will result in a loss or net gain not required to be recognized for California income tax purposes. The seller is subject to penalty for knowingly filing a fraudulent certificate for the purpose of avoiding the withholding requirement. Contact FTB: For additional information regarding California withholding or for the Alternative Withholding, contact the Franchise Tax Board at(toll free) 888-792-4900), by e-mail WSCS.GEN@ftb.ca.gov; or visit their website at www.ftb.ca.gov. C. FEDERAL WITHHOLDING &REPORTING Certain federal reporting and withholding requirements exist for real estate transactions where the seller(transferor) is a non-resident alien, a non-domestic corporation, partnership, or limited liability company; or a domestic corporation, partnership or limited liability company controlled by non-residents; or non-resident corporations, partnerships or limited liability companies. D. TAXPAYER IDENTIFICATION DISCLOSURE Federal and state laws require that certain forms include a party's TIN and that such forms or copies of the forms be provided to the other party and to the applicable governmental authorities. Parties to a real estate transaction involving seller-provided financing are required to furnish, disclose, and include the other party's TIN in their tax returns. Escrow Holder is authorized to release a party's TINs and copies of statutory forms to the other party and to the applicable governmental authorities in the foregoing circumstances. The parties agree to hold Escrow Holder harmless against any fees, costs, or judgments incurred and/or awarded because of the release of their TIN as authorized herein. THIS COMPANY CONDUCTS ESCROW BUSINESS UNDER CERTIFICATE OF AUTHORITY ISSUED BY THE STATE OF CALIFORNIA DEPARTMENT OF INSURANCE. ©2014 First American Title Insurance company and/or its affiliates, Page 4 of 4 All rights reserved.O NYSE: FAF Page 5 of 6 Kelly Simoneau/cc/02/05/2018/NCS-882726-ONT1/30 sr sei,°jc rs , The First American Corporation First American Title Company Privacy Policy We Are Committed to Safeguarding Customer Information In order to better serve your needs now and in the future, we may ask you to provide us with certain information. We understand that you may be concerned about what we will do with such information—particularly any personal or financial information. We agree that you have a right to know how we will utilize the personal information you provide to us. Therefore, together with our parent company, The First American Corporation, we have adopted this Privacy Policy to govern the use and handling of your personal information. Applicability This Privacy Policy governs our use of the information which you provide to us. It does not govern the manner in which we may use information we have obtained from any other source, such as information obtained from a public record or from another person or entity. First American has also adopted broader guidelines that govern our use of personal information regardless of its source. First American calls these guidelines its Fair Information Values, a copy of which can be found on our website at www.firstam.com. Types of Information Depending upon which of our services you are utilizing, the types of nonpublic personal information that we may collect include: • Information we receive from you on applications, forms and in other communications to us, whether in writing, in person, by telephone or any other means; • Information about your transactions with us, our affiliated companies, or others; and • Information we receive from a consumer reporting agency. Use of Information We request information from you for our own legitimate business purposes and not for the benefit of any nonaffiliated party. Therefore, we will not release your information to nonaffiliated parties except: (1) as necessary for us to provide the product or service you have requested of us; or (2) as permitted by law. We may, however, store such information indefinitely, including the period after which any customer relationship has ceased. Such information may be used for any internal purpose, such as quality control efforts or customer analysis. We may also provide all of the types of nonpublic personal information listed above to one or more of our affiliated companies. Such affiliated companies include financial service providers, such as title insurers, property and casualty insurers, and trust and investment advisory companies, or companies involved in real estate services, such as appraisal companies, home warranty companies, and escrow companies. Furthermore, we may also provide all the information we collect, as described above, to companies that perform marketing services on our behalf, on behalf of our affiliated companies, or to other financial institutions with whom we or our affiliated companies have joint marketing agreements. Former Customers Even if you are no longer our customer, our Privacy Policy will continue to apply to you. Confidentiality and Security We will use our best efforts to ensure that no unauthorized parties have access to any of your information. We restrict access to nonpublic personal information about you to those individuals and entities who need to know that information to provide products or services to you. We will use our best efforts to train and oversee our employees and agents to ensure that your information will be handled responsibly and in accordance with this Privacy Policy and First American's Fair Information Values. We currently maintain physical, electronic, and procedural safeguards that comply with federal regulations to guard your nonpublic personal information. Page 6 of 6 Kelly Simoneau/cc/02/05/20181 NCS-882726-0NT1/30