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Resolution Number 07-08-07-04 ' RESOLUTION NO. 07-08-07-04 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO, CALIFORNIA, APPROVING THE DECLARATION OF RESTRICTIVE COVENANTS FOR CONSERVATION PURPOSES FOR THE TERMINAL RESERVOIR NO. 3 PROJECT (CIP#753)(APN 675-011- 27 and 675-261-05) WHEREAS, the City of San Juan Capistrano (City), in implementing its Domestic Water Master Plan is constructing the Terminal Reservoir No. 3 Project, which will replace the existing Terminal Reservoir No. 2 with a new, 6 million gallon reservoir located south of . Highland Drive within the Mission Hills portion of the City; and, WHEREAS, the City, as part of constructing this project is required to establish riparian habitat restoration areas; and, WHEREAS, the City is required to execute a Declaration of Restrictive Covenants for the purpose of protecting and maintaining the riparian habitat restoration areas in perpetuity. NOW, THEREFORE, BE IT RESOLVED, on August 7, 2007, the City Council of the ' City of San Juan Capistrano, does hereby resolve, determine, and order as follows: SECTION 1. Construction of the Terminal Reservoir No. 3 Project is an essential part of implementing the City's Domestic Water Master Plan. SECTION 2. As part of constructing this project, the City is required to establish riparian habitat restoration areas, and execute a Declaration of Restrictive Covenants for the purpose of protecting and maintaining the restoration areas in perpetuity. SECTION 3. The City Council approves the Declaration of Restrictive Covenants for APN 675- 011-27 (Exhibit A) and 675-261-05 (Exhibit B) for the conservation of riparian habitat restoration areas for the Terminal Reservoir No. 3 Project. SECTION 6. The City Clerk is directed to forthwith-forward the Declaration to the Orange County ' Recorder's Office for recordation. Page 1 of 2 08/07/2007 PASSED, APPROVED, AND ADOPTED this 7th d of Aug t 2007 &0� AM ALLEVATO, MAYOR ATTES 4/ 1 MARG NAH N, CITY CL STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF SAN JUAN CAPISTRANO ) I, MARGARET R. MONAHAN, appointed City Clerk of the City of San Juan Capistrano,do hereby certify that the foregoing Resolution No. 07-08-07-04 was duly adopted by the City Council of the City of San Juan Capistrano at a Regular meeting thereof, held the 7"'day of August 2007, by the following vote: AYES: COUNCIL MEMBERS: Nielsen, Uso, Hribar, Soto and Mayor Allevato NOES: COUNCIL MEMBER: None ABSENT: COUNCIL MEMBER: None MAR AR T R. MONAHAN, City Clerk Page 2 of 2 08/07/2007 ' RECORDING AT REQUEST OF AND RETURN TO: City of San Juan Capistrano City Clerk's Office 32400 Paseo Adelanto San Juan Capistrano, CA 92675 RECORDING FEES EXEMPT DUE TO GOVERNMENT CODE 27383 & 6103 CITY OF SAN JUAN CAPISTRANO DECLARATION OF RESTRICTIVE COVENANTS (APN 675-011-27, CITY OF SAN JUAN CAPISTRANO, COUNTY OF ORANGE) This DECLARATION OF RESTRICTIVE COVENANTS ("Restrictive Covenant") is made this day of , 2007 by the City of San Juan Capistrano, a Municipal Corporation lawfully existing under the laws of the State of California (hereinafter "Declarant"). RECITALS ' A. Declarant is the developer of that certain real property in the City of San Juan Capistrano, County of Orange, State of California, commonly referred to as the Terminal Reservoir No. 3 Project—Off-site Mitigation at Reservoir Canyon (the "Project"). B. Declarant is the sole owner in fee simple of those portions of the Project legally described at Exhibit "A" and depicted at Exhibit "B," attached hereto and incorporated by this reference (the "Restricted Property"), which consists of approximately 0.54 acres. C. The Restricted Property provides, among other things, compensatory mitigation for certain impacts of the Project by Declarant pursuant to requirements of the United States Army Corps of Engineers' ("ACOE") Section 404 Permit No. 200401374-CJF and amendments thereto ("Section 404 Permit"). D. This Restrictive Covenant is designed to satisfy and is granted in satisfaction of Special Condition 4.2.4 of the Section 404. E. Consistent with the terms and conditions of this Restrictive Covenant, the Restricted Property currently is and will remain in a Natural Condition as defined herein and is intended to be preserved in its natural, scenic, open condition to maintain its ecological, historical, visual and educational values (collectively, "Conservation Values"). The Conservation Values are of importance to the people of the County of Orange and the people of the State of California. 288664 l 6/28/2007 10:02 AM EXHIBIT A F. The ACOE is the federal agency charged with the primary responsibility for regulating activities in waters of the United States, including wetlands, with regulatory authority over discharges of dredged and fill material into such waters pursuant to Section 404 of the Clean Water Act, and is a third party beneficiary of this Restrictive Covenant. COVENANTS, TERMS,CONDITIONS AND RESTRICTIONS 1. NOW THEREFORE, in consideration of the above recitals and the mutual covenants, terms, conditions, and restrictions contained herein, and pursuant to California law, including Civil Code Section 815, et seg., Declarant hereby declares the Restricted Property shall be held, transferred, conveyed, leased, occupied or otherwise disposed of and used subject to the following restrictive covenants (and incorporating the above recitals herein by this reference), which shall run with the land and be binding on Declarant's heirs, successors in interest, administrators, assigns, lessees, or other occupiers and users of the Restricted Property or any portion of it.Purpose. (a) The purpose of this Restrictive Covenant is to ensure the Restricted Property will be retained in perpetuity in a Natural Condition, defined below, and to prevent any use of the Restricted Property that will impair or interfere with the Conservation Values of the Restricted Property (the "Purpose"). Declarant intends that this Restrictive Covenant will confine the use of the Restricted Property to such activities, including without limitation, those involving the preservation and enhancement of native species and their habitat in a manner consistent with the habitat conservation purposes of this Restrictive Covenant. — (b) The term "Natural Condition," as referenced in the preceding paragraph and other portions of this Restrictive Covenant, shall mean the condition of the Restricted Property as it exists at the time this Restrictive Covenant is executed, as well as future enhancements or changes to the Restricted Property that occur directly as a result of the following activities: (1) Compensatory mitigation measures, including implementation, maintenance and monitoring activities, required by the Section 404 Permit, and as described in the "Habitat Mitigation and Monitoring Plan," prepared by Jeffrey B. Froke dated, February 2007. ("Mitigation Plan"), the cover page of which is attached as Exhibit "C" (collectively, "Compensatory Mitigation"); (2) In-perpetuity maintenance ("Long-Term Maintenance"), that occurs on the Restricted Property as described in the Management Plan and Section 13 herein; or (3) Activities described in Section 5 herein. (c) Declarant certifies to ACOE that, to Declarant's actual knowledge, there are no structures or other man-made improvements existing on the Restricted Property. Declarant further certifies to ACOE that, to Declarant's actual knowledge, there are no previously granted easements existing on the Restricted Property that interfere or conflict with the Purpose of this Restrictive Covenant as evidenced by the Title Report attached at Exhibit "D". The current Natural Condition is evidenced in part by the depiction of the Restricted Property attached on — Exhibit "E", showing all relevant and plottable property lines, easements, dedications, improvements, boundaries and major, distinct natural features such as waters of the United 288664 2 6/28/2007 10.02 AM States. Declarant has delivered further evidence of the Natural Condition to ACOE consisting of (1) a color aerial photograph of the Restricted Property at an appropriate scale taken as close in time as possible to the date this Restrictive Covenant is executed; (2) an overlay of the Restricted Property boundaries on that aerial photograph; and (3) on-site color photographs showing all natural features of the Restricted Property. (d) If a controversy arises with respect to the Natural Condition of the Restricted Property, Declarant or ACOE shall not be foreclosed from utilizing any and all other relevant documents, surveys, photographs or other evidence or information to assist in the resolution of the controversy. (e) The term "Biological Monitor" shall mean an independent third-party consultant or an employee of the City possessing familiarity with biological resources in the Orange County area and at least a B.A. or B.S. level of education in the field of biology or a related field. Qualifications of the Biological Monitor must be submitted to ACOE for review and approval. 2. ACOE's rights. To accomplish the Purpose of this Restrictive Covenant, Declarant hereby grants and conveys the following rights to ACOE (but without obligation of the ACOE): (a) A non-exclusive easement on and over the Restricted Property to preserve and protect the Conservation Values of the Restricted Property; and (b) A non-exclusive easement on and over the Restricted Property to enter upon the ' Restricted Property to monitor Declarant's compliance with and to otherwise enforce the terms of this Restrictive Covenant; and (c) A non-exclusive easement on and over the Restricted Property to prevent any activity on or use of the Restricted Property that is inconsistent with the Purpose of this Restrictive Covenant and to require the restoration of such areas or features of the Restricted Property that may be damaged by any act, failure to act, or any use that is inconsistent with the Purpose of this Restrictive Covenant; and (d) Except as otherwise set forth in this Restrictive Covenant, all present and future development rights allocated, implied, reserved or inherent in the Restricted Property; such rights are hereby terminated and extinguished, and may not be used on or transferred to any portion of the Property, nor any other property adjacent or otherwise; and (e) The right to enforce by means, including, without limitation, injunctive relief, the terms and conditions of this Restrictive Covenant. 3. Declarant's Duties. Declarant, its successors and assigns shall:Undertake all reasonable actions to prevent the unlawful entry and trespass by persons whose activities would be inconsistent with the Conservation Values and would violate the permitted uses of the Restricted Property set forth in this Restrictive Covenant; and (b) Post and maintain signage in or adjacent to the boundary areas of the Restricted Property as described in Section 5(d); and 288664 3 6/28/2007 10.02 AM (c) Comply with the terms of this Restrictive Covenant and cooperate with ACOE in the protection of the Conservation Values; and (d) Repair and restore damage to the Restrictive Property directly or indirectly caused by Declarant, Declarant's guests, representatives or agents and third parties; provided, however, Declarant, its successors or assigns shall not engage in any repair or restoration work in the Restricted Property without first consulting with ACOE pursuant to Section 13; and (e) Undertake construction, maintenance and monitoring of mitigated areas pursuant to the Mitigation Plan until receipt of final approval of the success of the mitigation from ACOE; and (f) Obtain any applicable governmental permits and approvals for any activity or use permitted by this Restrictive Covenant, and any activity or use shall be undertaken in accordance with all applicable federal, state, local and administrative agency statutes, ordinances, rules, regulations, orders or requirements; (g) Perform in-perpetuity Long-Term Maintenance set forth in Section 13 below; and (h) Perform an annual compliance inspection of the Restricted Property, prepare an inspection report and shall make reports available to ACOE upon request. 4. Prohibited Uses. Any activity on or use of the Restricted Property inconsistent with the _ Purpose of this Restrictive Covenant and not reserved as set forth in Section 5 hereof is prohibited. Without limiting the generality of the foregoing, the following uses by Declarant, and its respective guests, agents, assigns, employees, representatives, successors and third parties, are expressly prohibited, except as otherwise provided herein or unless specifically provided for in the Section 404 Permit, Mitigation Plan, and any easements and reservations of rights recorded in the chain of title to the Restricted Property at the time of this conveyance (as set forth in Exhibit D hereto): (a) Supplemental watering except for habitat enhancement activities described in Section 5(b); (b) Use of herbicides, pesticides, rodenticides, biocides, fertilizers, or other agricultural chemicals or weed abatement activities, except weed abatement activities necessary to control or remove invasive, exotic plant species; (c) Incompatible fire protection activities, except the fire prevention activities set forth in Section 5(f); (d) Use of off-road vehicles and use of any other motorized vehicles except on existing roadways and as necessary to restore native plant communities consistent with Section 5. (e) Grazing or other agricultural activity of any kind; (f) Recreational activities including, but not limited to, horseback riding, biking, hunting or fishing; 288664 4 6/28/2007 10.02 AM ' (g) Residential, commercial,retail, institutional, or industrial uses; (h) Any legal or de facto division, subdivision or portioning of the Restricted Property; (i) Construction, reconstruction or placement of any building or other improvement, billboard, or signs except signs permitted in Section 3(b) and Section 5(d); 0) Depositing, dumping or accumulating soil, trash, ashes, refuse, waste, bio-solids or any other material; (k) Planting, introduction or dispersal of non-native or exotic plant or animal species; (1) Filling, dumping, excavating, draining, dredging, mining, drilling, removing or exploring for or extraction of minerals, loam, gravel, soil, rock, sand or other material on or below the surface of the Restricted Property; (m) Altering the general topography of the Restricted Property, including but not limited to building of roads,trails, and flood control work; (n) Removing, destroying, or cutting of trees, shrubs or other vegetation, except as necessary for (1) emergency fire protection as required by fire safety officials as set forth in Section 5(f), (2) controlling invasive, exotic plants which threaten the integrity of the habitat, (3) ' preventing or treating disease, (4) completing the Mitigation Plan, or (5) activities described in Section 31 Section 5 and Section 13; (o) Manipulating, impounding or altering any natural watercourse, body of water or water circulation on the Restricted Property, and activities or uses detrimental to water quality, including but not limited to degradation or pollution of any surface or sub-surface waters; and (p) Fuel modification zones (defined as a strip of mowed land or the planting of vegetation possessing low combustibility for purposes of fire suppression). 5. Reserved Rights. Declarant reserves to itself, and to its personal representatives, heirs, successors, and assigns, all rights accruing from its ownership of the Restricted Property, including the right to engage in or to permit or invite others to engage in all uses of the Restricted Property that not prohibited or limited by, and are consistent with, the Purpose of this Restrictive Covenant, including the following uses: (a) Access. Reasonable access through the Restricted Property to adjacent land over existing roads, or to perform obligations or other activities permitted by this Restrictive Covenant or that are required under the Section 404 Permit. In addition, police and other public safety organizations and their personnel may enter the Restricted Property to address any legitimate public health or safety matter. (b) Habitat Enhancement Activities. Enhancement of native plant communities, ' including the right to plant trees and shrubs of the same type as currently existing on the Restricted Property, so long as such activities do not harm the habitat types identified in the 288664 5 6/28/2007 10:02 AM Section 404 Permit. For purposes of preventing erosion and reestablishing native vegetation, the Declarant shall have the right to revegetate areas that may be damaged by the permitted activities under this Section 5, naturally occurring events or by the acts of persons wrongfully damaging the Natural Condition of the Restricted Property. Prior to any habitat enhancement activities, Declarant shall have its Biological Monitor submit detailed plans to ACOE for review and approval. Habitat enhancement activities shall not be in direct or potential conflict with the preservation of the Natural Condition of the Restricted Property or the Purpose of this Restrictive Covenant and shall be performed in compliance with all applicable laws, regulations, and permitting requirements. (c) Vegetation, Debris, and Exotic Species Removal. Removal or trimming of vegetation downed or damaged due to natural disaster, removal of man-made debris, removal of parasitic vegetation (as it relates to the health of the host plant) and removal of non-native or exotic plant or animal species. Vegetation, debris, and exotic plant species removal shall not be in direct or potential conflict with the preservation of the Natural Condition of the Restricted Property or the Purpose of this Restrictive Covenant and shall be performed in compliance with all applicable laws, regulations, and permitting requirements. (d) Erection and Maintenance of Informative Signage. Erection and maintenance of signage and other notification features saying "Natural Area Open Space," "Protected Natural Area," or similar descriptions that inform persons of the nature and restrictions on the Restricted Property. Prior to erection of such signage, the Declarant shall submit detailed plans showing the location of such signs to ACOE for review and approval. The erection and maintenance of -- informative signage shall not be in direct or potential conflict with the preservation of the Natural Condition of the Restricted Property or the Purpose of this Restrictive Covenant and shall be performed in compliance with all applicable laws, regulations, and permitting requirements. (e) No Interference with Development of Adjoining Property. Notwithstanding anything set forth herein to the contrary, nothing in this Restrictive Covenant is intended nor shall be applied to in any way limit Declarant or any of Declarant's successors and assigns from (1) constructing, placing, installing, and/or erecting any improvements upon the portions of the Project not constituting the Restricted Property, (2) installing and/or maintaining the subsurface infrastructure improvements, utility lines, landscaping (including irrigation and runoff), landscape mitigation, and/or similar non-structural improvements within the Restricted Property, and/or(3) developing adjoining property for any purposes, except as limited by any local, state or federal permit requirements for such development and provided that for all of the above clauses (1), (2), and (3) neither such activity nor any effect resulting from such activity amounts to a use of the Restricted Property, or has an impact upon the Restricted Property, that is prohibited by Section 4 above. (f) Fire Protection. The right, in an emergency situation only, to maintain firebreaks (defined as a strip of plowed or cleared land made to check the spread of a fire), trim or remove brush, otherwise perform preventative measures required by the fire department to protect structures and other improvements from encroaching fire. All other brush management activities shall be limited to areas outside the Restricted Property. 288664 6 6/28/2007 10.02 AM ' 6. Enforcement. (a) Right to Enforce. Declarant, its successors and assigns, grant to ACOE, U.S. Department of Justice, and the State Attorney General a discretionary right to enforce these restrictive covenants in a judicial or administrative action against any person(s) or other entity (ies) violating or attempting to violate these restrictive covenants; provided, however, that no violation of these restrictive covenants shall result in a forfeiture or reversion of title. The U.S. Department of Justice and the State Attorney General shall have the same rights, remedies and limitations as ACOE under this Section 6. The rights under this Section are in addition to, and do not limit rights conferred in Section 2 above, the rights of enforcement against Declarant, its successor or assigns under the Section 404 Permit, or any rights of the various documents created thereunder or referred to therein. (b) Notice. (1) If ACOE determines Declarant is in violation of the terms of this Restrictive Covenant or that a violation is threatened, ACOE may demand the cure of such violation. In such a case, ACOE shall issue a written notice to Declarant (hereinafter "notice of violation") informing Declarant of the violation and demanding cure of such violation. (2) Declarant shall cure the noticed violation within fifteen (15) days of receipt of said written notice from ACOE. If said cure reasonably requires more than fifteen (15) days, Declarant shall, within the fifteen (15) day period submit to ACOE for review and approval ' a plan and time schedule to diligently complete a cure. Declarant shall complete such cure in accordance with the approved plan. If Declarant disputes the notice of violation, it shall issue a written notice of such dispute (hereinafter "notice of dispute") to the ACOE within fifteen (15) days of receipt of written notice of violation. (3) If Declarant fails to cure the noticed violation(s) within the time period(s) described in Section 6(b)(2) above, or Section 6(c) below, ACOE may bring an action at law or in equity in a court of competent jurisdiction to enforce compliance by Declarant with the terms of this Restrictive Covenant. In such action, the ACOE may (i) recover any damages to which they may be entitled for violation by Declarant of the terms of this Restrictive Covenant, (ii) enjoin the violation, ex parte if necessary, by temporary or permanent injunction without the necessity of proving either actual damages or the inadequacy of otherwise available legal remedies, or(iii) pursue other equitable relief, including, but not limited to, the restoration of the Restricted Property to the condition in which it existed prior to any such violation or injury. ACOE may apply any damages recovered to the cost of undertaking any corrective action on the Restricted Property. (4) If Declarant provides ACOE with a notice of dispute, as provided herein, ACOE shall meet and confer with Declarant at a mutually agreeable place and time, not to exceed thirty (30) days from the date that ACOE receives the notice of dispute. ACOE shall consider all relevant information concerning the disputed violation provided by Declarant and shall determine whether a violation has in fact occurred and, if so, whether the notice of violation ' and demand for cure issued by ACOE is appropriate in light of the violation. 288664 7 6/28/2007 10.02 AM (5) If, after reviewing Declarant's notice of dispute, conferring with Declarant, and considering all relevant information related to the violation, ACOE determines that a violation has occurred; ACOE shall give Declarant notice of such determination in writing. Upon receipt of such determination, Declarant shall have fifteen (15) days to cure the violation. If said cure reasonably requires more than fifteen (15) days, Declarant shall, within the fifteen (15) day period submit to ACOE for review and approval a plan and time schedule to diligently complete a cure. Declarant shall complete such cure in accordance with the approved plan. (c) Immediate Action. If ACOE, in its reasonable discretion, determines that circumstances require immediate action to prevent or mitigate significant damage to the Conservation Values of the Restricted Property, ACOE may immediately pursue all available remedies, including injunctive relief, available pursuant to both this Restrictive Covenant and state and federal law after giving Declarant at least twenty four (24) hours' written notice before pursuing such remedies. So long as such twenty four (24) hours' notice is given, ACOE may immediately pursue all available remedies without waiting for the expiration of the time periods provided for cure or notice of dispute as described in Section 6(b)(2). The written notice pursuant to this paragraph may be transmitted to Declarant by facsimile. The rights of ACOE under this paragraph apply equally to actual or threatened violations of the terms of this Restrictive Covenant. Declarant agrees that the remedies at law for ACOE for any violation of the terms of this Restrictive Covenant are inadequate and that ACOE shall be entitled to the injunctive relief described in this section, both prohibitive and mandatory, in addition to such other relief to which ACOE may be entitled, including specific performance of the terms of this Restrictive Covenant, without the necessity of proving either actual damages or the inadequacy of otherwise available legal remedies. The remedies described in this Section 6(c) shall be cumulative and shall be in addition to all remedies now or hereafter existing at law or in equity. (d) Costs of Enforcement. Any costs incurred by ACOE in enforcing the terms of this Restrictive Covenant against Declarant including, but not limited to, costs of suit and attorneys' fees, and any costs of restoration necessitated by Declarant's violation or negligence under the terms of this Restrictive Covenant shall be borne by Declarant, subject to California Civil Code section 815. (e) Enforcement Discretion. Enforcement of the terms of this Restrictive Covenant shall be at the discretion of ACOE. Any forbearance by ACOE to exercise rights under this Restrictive Covenant in the event of any breach of any term of this Restrictive Covenant by Declarant shall not be deemed or construed to be a waiver by ACOE of such term or of any subsequent breach of the same or any other term of this Restrictive Covenant or of any of the rights of ACOE under this Restrictive Covenant. No delay or omission by ACOE in the exercise of any right or remedy upon any breach by Declarant shall impair such right or remedy or be construed as a waiver. (f) Acts Beyond Declarant's Control. Nothing contained in this Restrictive Covenant shall be construed to entitle ACOE to bring any action against Declarant for any injury to or change in the Restricted Property resulting from: (1) Any natural cause beyond Declarant's control, including without limitation, fire not caused by Declarant, flood, storm, and earth movement; or 288664 8 6/28/2007 10:02 AM (2) Any prudent action taken by Declarant under emergency conditions to prevent, abate, or mitigate significant injury to persons and/or the Restricted Property resulting from such causes. Notwithstanding the foregoing, even actions undertaken during emergency conditions must receive prior authorization from the Department of Army (through expedited procedures, if appropriate) if the action involves a discharge of dredged or fill material into jurisdictional waters of the United States and before any ground-disturbing activities occur on the Restricted Property. 7. Access. This Restrictive Covenant does not convey a general right of access to the public or a general right of access to the Restricted Property. In accordance with Section 3(b), Declarant shall install signage at all likely points of entry informing persons of the nature and restrictions on the Restricted Property. This Restrictive Covenant will allow for access to the Restricted Property by ACOE and third-party easement holders of record at the time of this conveyance at locations designated in easements and reservations of rights recorded in the chain of title to the Restricted Property at the time of this conveyance. 8. Costs and Liabilities. Declarant, or its successor or assign retains all responsibilities and shall bear all costs and liabilities of any kind related to the ownership, operation, upkeep, and maintenance of the Restricted Property. Declarant agrees ACOE shall not have any duty or ' responsibility for the operation, upkeep, or maintenance of the Restricted Property, the monitoring of hazardous conditions thereon, or the protection of Declarant, the public or any third parties from risks relating to conditions on the Restricted Property. Declarant, its successor or assign remains solely responsible for obtaining any applicable governmental permits and approvals for any activity or use permitted by this Restrictive Covenant, and any activity or use shall be undertaken in accordance with all applicable federal, state, local and administrative agency statutes, ordinances, rules, regulations, orders and requirements. 9. Taxes. Declarant, its successor or assign shall pay before delinquency all taxes, assessments, fees, and charges of whatever description levied on or assessed against the Restricted Property by competent authority, including any taxes imposed upon, or incurred as a result of, this Restrictive Covenant, and agrees to furnish ACOE with satisfactory evidence of payment upon request. 10. Condemnation. The Purpose of the Restricted Property is presumed to be the best and most necessary public use as defined at California Civil Procedure Code Section 1240.680 notwithstanding California Civil Procedure Code Sections 1240.690 and 1240.700. 11. Assignment and Subsequent Transfers. (a) Declarant agrees to incorporate the terms of this Restrictive Covenant in any deed or other legal instrument by which Declarant divests itself of any interest in all or a portion of the Restricted Property. Declarant, its successor or assign agrees to (i) incorporate by reference to the title of and the recording information for this Restrictive Covenant in any deed or other legal instrument by which each divests itself of any interest in all or a portion of the Restricted 288664 9 6/28/2007 10.02 AM Property, including, without limitation, a leasehold interest and (ii)give actual notice to any such transferee or lessee of the existence of this Restrictive Covenant. Declarant, its successor or assign agrees to give written notice to ACOE of the intent to transfer any interest at least thirty (30) days prior to the date of such transfer. Any subsequent transferee shall be deemed to have assumed the obligations of this Restrictive Covenant and to have accepted the restrictions contained herein. The failure of Declarant, its successor or assign to perform any act provided in this Section shall not impair the validity of this Restrictive Covenant or limit its enforceability in any way. (b) From and after the date of any transfer of all or any portion of the Restricted Property by Declarant and each transfer thereafter, (i) the transferee shall be deemed to have assumed all of the obligations of Declarant as to the portion transferred, as set forth in this Restrictive Covenant, (ii) the transferee shall be deemed to have accepted the restrictions contained herein as to the portion transferred, (iii) the transferor, as applicable, shall have no further obligations hereunder except for the obligations set forth above in this paragraph and pursuant to Section 22, and (iv) all references to Declarant in this Restrictive Covenant shall thereafter be deemed to refer to such transferee. 12. Notices. Any notice, demand, request, consent, approval, or communication that either party desires or is required to give to the other shall be in writing and be served personally or sent by first class mail, postage prepaid, addressed as follows: To Declarant: Public Works Director — City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 To ACOE: District Counsel U.S. Army Corps of Engineers 915 Wilshire Blvd, Room 1535 Los Angeles, CA 90017-3401 or to such other address as either party shall designate by written notice to the other. Notice shall be deemed effective upon delivery in the case of personal delivery or, in the case of delivery by first class mail, five (5) days after deposit into the United States mail. 13. Lone-Term Maintenance. In addition to the other terms contained herein, Declarant, its successor or assign shall be responsible for the maintenance/repair of the Restricted Property in perpeutity. Such long-term maintenance shall consist of the following activities: (a) annual removal, by hand, of trash or man-made debris, (b) annual maintenance of signage and other notification features or similar descriptions that inform persons of the nature and restrictions on the Restricted Property pursuant to Section 3(b), and (c) annual restoration of the Restricted Property damaged by any activities prohibited by Section 4 herein. Declarant, its successors and assigns shall prepare a monitoring and maintenance report documenting activities performed under subsections (a) and (b) above, and shall make reports available to ACOE upon request. When activities are performed pursuant to subsection (c) above, Declarant shall have its Biological Monitor to prepare a Restoration Plan and to oversee/monitor such restoration 288664 10 6/28/2007 10.02 AM activities. Declarant shall have its Biological Monitor submit a draft Restoration Plan to ACOE for review and approval prior to its implementation. Upon completion of restoration as specified in the ACOE-approved Restoration Plan, Declarant shall have its Biological Monitor prepare a detailed monitoring report, and Declarant shall make the report available to ACOE within thirty (30) days of completion of restoration activities. Declarant, its successors or assigns and the Biological Monitor shall sign the monitoring report, and the report shall document the Biological Monitor's name and affiliation, dates Biological Monitor was present on-site, activities observed and their location, Biological Monitor's observations regarding the adequacy of restoration performance by the Declarant, its successors or assigns, or its contractor in accordance with the ACOE-approved Restoration Plan, corrections recommended and implemented. 14. Amendment. Declarant may amend this Restrictive Covenant only after written concurrence by ACOE. Any such amendment shall be consistent with the Purpose of this Restrictive Covenant and shall not affect its perpetual duration. Declarant shall record any amendments to this Restrictive Covenant approved by ACOE in the official records of Orange County, California, and shall provide a copy of the recorded document to ACOE. 15. Recordation. Declarant, its successor or assign shall promptly record this instrument in the official records of Orange County, California, and provide a copy of the recorded document to ACOE. 16. Estoppel Certificate. Upon request, ACOE shall within fifteen (15) days execute and ' deliver to Declarant, its successor or assign any document, including an estoppel certificate, which certifies compliance with any obligation of Declarant, its successor or assign contained in this Restrictive Covenant or otherwise evidences the status of this Restrictive Covenant as may be requested by Declarant, its successor or assign. 17. Controlling Law. The laws of the United States and the State of California shall govern the interpretation and performance of this Restrictive Covenant. 18. Liberal Construction. Any general rule of construction to the contrary notwithstanding, this Restrictive Covenant shall be liberally construed in favor of the deed to effect the purpose of this Restrictive Covenant and the policy and purpose California Civil Code Section 815, et seq. If any provision in this instrument is found to be ambiguous, an interpretation consistent with the purposes of this Restrictive Covenant that would render the provision valid shall be favored over any interpretation that would render it invalid. 19. Severability. If a court of competent jurisdiction voids or invalidates on its face any provision of this Restrictive Covenant, such action shall not affect the remainder of this Restrictive Covenant. If a court of competent jurisdiction voids or invalidates the application of any provision of this Restrictive Covenant to a person or circumstance, such action shall not affect the application of the provision to other persons or circumstances. 20. No Forfeiture. Nothing contained herein will result in a forfeiture or reversion of Declarant's title in any respect. ' 21. Successors and Assigns. The covenants, terms, conditions, and restrictions of this Restrictive Covenant shall be binding upon, and inure to the benefit of, the parties hereto and 288664 11 6/28/2007 10:02 AM their respective personal representatives, heirs, successors, and assigns and shall continue as a servitude running in perpetuity with the Restricted Property. 22. Termination of Rights and Obligations. A party's rights and obligations under this Restrictive Covenant terminate upon transfer of the party's interest in the Restrictive Covenant or Restricted Property, except that liability for acts or omissions occurring prior to transfer shall survive transfer. 23. Captions. The captions in this instrument have been inserted solely for convenience of reference and are not a part of this instrument and shall have no effect upon construction or interpretation. 24. No Hazardous Materials Liability. (a) Declarant represents and warrants that it has no knowledge of any release or threatened release of Hazardous Materials (defined below) in, on, under, about or affecting the Restricted Property. (b) Despite any contrary provision of this Restrictive Covenant, the parties do not intend this Restrictive Covenant to be, and this Restrictive Covenant shall not be, construed such that it creates in or gives ACOE any of the following: (1) The obligations or liabilities of an "owner" or "operator," as those terms _ are defined and used in Environmental Laws (defined below), including, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (42 U.S.C. Section 9601 et seq.; hereinafter, "CERCLA"); or (2) The obligations or liabilities of a person described in 42 U.S.C. Section 9607(a)(3) or(4); or (3) The obligations of a responsible person under any applicable Environmental Laws; or (4) The right to investigate and remediate any Hazardous Materials associated with the Restricted Property; or (5) Any control over Declarant's ability to investigate, remove, remediate or otherwise clean up any Hazardous Materials associated with the Restricted Property. (c) The term "Hazardous Materials" includes, without limitation, (a) material that is flammable, explosive or radioactive; (b)petroleum products, including by-products and fractions thereof; and (c) hazardous materials, hazardous wastes, hazardous or toxic substances, or related materials defined in CERCLA, the Resource Conservation and Recovery Act (42 U.S.C. Section 6901 et seq.); the Hazardous Materials Transportation Act (49 U.S.C. Section 5101 et seq.); the Hazardous Waste Control Law (California Health & Safety Code Section 25100 et seq.); the Hazardous Substance Account Act (California Health & Safety Code Section 25300 et seq.), and _ in the regulations adopted and publications promulgated pursuant to them, or any other 288664 12 6/28/2007 10:02 AM ' applicable federal, state or local laws, ordinances, rules, regulations or orders now in effect or enacted after the date of this Restrictive Covenant. (d) The term "Environmental Laws" includes, without limitation, any federal, state, local or administrative agency statute, ordinance, rule, regulation, order or requirement relating to pollution, protection of human health or safety, the environment or Hazardous Materials. Declarant represents, warrants and covenants to ACOE that activities upon and use of the Restricted Property by Declarant, its agents, employees, invitees and contractors will comply with all Environmental Laws. 25. Additional Easements. Declarant shall not grant any additional easements, rights of way or other interests in the surface or subsurface of the Restricted Property (other than a security interest that is subordinate to this Restrictive Covenant), or grant or otherwise abandon or relinquish any water rights relating to the Restricted Property, without first obtaining the written consent of ACOE. ACOE may withhold such consent if it determines that the proposed interest or transfer is inconsistent with the Purpose of this Restrictive Covenant or will impair or interfere with the Conservation Values of the Restricted Property. This Section shall not prohibit transfer of a fee or leasehold interest in the Restricted Property that is subject to this Restrictive Covenant and complies with Section 11. Declarant, its successors and assigns shall record any additional easements or other interests in the Restricted Property approved by the ACOE in the official records of Orange County, California and provide a copy of the recorded document to the ACOE. 26. ACOE Benefited Party. Except for Section 21, the terms of this Restrictive Covenant are for the benefit of the ACOE only and are not for the benefit of any other party. 27. Extinguishment. If circumstances arise in the future that render the Purpose of the Restrictive Covenant impossible to accomplish, the Restrictive Covenant can only be terminated or extinguished, in whole or in part, by judicial proceedings in a court of competent jurisdiction. 28. Warranty. Declarant represents and warrants that there are no outstanding mortgages, liens, encumbrances or other interests in the Restricted Property (including, without limitation, mineral interests) which have not been expressly subordinated to this Restrictive Covenant, and that the Restricted Property is not subject to any other Conservation Easement. IN WITNESS WHEREOF Declarant has executed this Restrictive Covenant the day and year first above written. ' City of San Juan Capistrano 288664 13 6/28/2007 10.02 AM By: Sam Allevato, Mayor Attest: By: Margaret R. Monahan City Clerk Approved as to Form: By: John R. Shaw City Attorney 288664 14 6/28/2007 10.02 AM ' EXHIBIT A Legal Description 1 288664 15 6/28/2007 10:02 AM EXHIBIT"A" LEGAL DESCRIPTION CITY OF SAN JUAN CAPISTRANO OPEN SPACE EASEMENT THOSE CERTAIN PARCELS OF LAND SITUATED IN THE CITY OF SAN JUAN CAPISTRANO,COUNTY OF ORANGE, STATE OF CALIFORNIA,BEING A PORTION OF LOT 7 AS SHOWN ON A MAP FILED IN BOOK 4 PAGE 15 OF RECORDS OF SURVEY IN THE OFFICE OF THE ORANGE COUNTY RECORDER MORE PARTICULARLY DESCRIBED AS FOLLOWS: PARCEL 1: COMMENCING AT THE CENTERLINE INTERSECTION OF CALLE DELGADO AND CALLE MIRAMAR AS SHOWN ON TRACT NO. 8087 FILED IN BOOK 331 PAGES 27 THROUGH 32,INCLUSIVE,OF MISCELLANEOUS MAPS IN THE OFFICE OF SAID ORANGE COUNTY RECORDER; THENCE EASTERLY ALONG THE CENTERLINE OF CALLE DELGADO NORTH 89010'11"EAST 158.50 FEET TO THE EASTERLY BOUNDARY OF TRACT NO. 8087; THENCE NORTH 75013'52 EAST 64.99 FEET TO THE TRUE POINT OF BEGINNING; THENCE NORTH 10012'48"EAST 34.07 FEET;THENCE NORTH 55°11'05"EAST 17.86 FEET; THENCE NORTH 73°03'23"34.98 FEET;THENCE NORTH 75°02'02"EAST 118.42 FEET;THENCE NORTH 74°50'51"EAST 146.52 FEET; THENCE NORTH 70040'45"EAST 107.76 FEET;THENCE NORTH 65°01'46"EAST 50.84 FEET; THENCE NORTH 72043'12" EAST 32.83 FEET;THENCE NORTH 71°34'16"EAST 85.15 FEET;THENCE NORTH 6937'19"EAST 78.18 FEET; THENCE NORTH 67016'58"EAST 66.23 FEET; THENCE NORTH 58°36'01"EAST 30.33 FEET TO A POINT HEREINAFTER REFERRED TO AS POINT"A"; THENCE SOUTH 24023'00"EAST 14.01 FEET; THENCE SOUTH 68°01'43"WEST 176.34 FEET; THENCE SOUTH 72041'33"WEST 85.60 FEET; THENCE SOUTH 57045'11"WEST 44.03 FEET; THENCE SOUTH 51°39'31"WEST 45.46 FEET; SOUTH 72058'38" WEST 66.80 FEET; THENCE SOUTH 79°11'47" WEST 41.76 FEET; THENCE SOUTH 61°13'56"WEST 44.27 FEET;THENCE SOUTH 67°07'43"WEST 53.66 FEET;THENCE SOUTH 81°34'11"WEST 63.18 FEET;THENCE SOUTH 44°07'52" WEST 40.49 FEET; THENCE SOUTH 62°22'29"WEST 41.70 FEET;THENCE NORTH 63042'20"WEST 38.15 FEET;THENCE SOUTH 6°57'29"WEST 30.21 FEET; THENCE SOUTH 64°02'27" WEST 31.04 FEET; THENCE NORTH 75°12'06" WEST 24.02 FEET;THENCE NORTH 45000'36"WEST 7.66 FEET;THENCE NORTH 11 022'14" WEST 13.29 FEET TO THE TRUE POINT OF BEGINNING. CONTAINING: 0.481 ACRES MORE OR LESS - F- 5 t ' PARCEL 2: COMMENCING AT POINT"A"AS PREVIOUSLY DESCRIBED; THENCE NORTH 78035'11"EAST 24.99 FEET TO THE TRUE POINT OF BEGINNING; THENCE NORTH 66054'03"EAST 67.92 FEET; THENCE NORTH 65140'33"EAST 17.51 FEET; THENCE NORTH 65°33'37"EAST 61.09 FEET;THENCE NORTH 54°42'34" EAST 46.80 FEET; THENCE NORTH 52-25'16"EAST 42.35 FEET; THENCE NORTH 47041'57"EAST 35.42 FEET; THENCE NORTH 38°36'00"EAST 13.07 FEET;THENCE SOUTH 80°29'09"EAST 4.38 FEET; THENCE SOUTH 68°58'10" EAST 2.83 FEET; THENCE SOUTH 3°00'34"WEST 12.83 FEET; THENCE SOUTH 54017'13"WEST 50.91 FEET; THENCE SOUTH 52°14'40"WEST 66.34 FEET; THENCE SOUTH 63018'OT'WEST 71.81 FEET; THENCE SOUTH65°21'48"WEST 96.34 FEET; THENCE NORTH 4°49'46" WEST 11.30 FEET TO THE TRUE POINT OF BEGINNING. CONTAINING : 0.059 ACRES MORE OR LESS EXHIBIT`B"ATTACHED HERETO AND BY THIS REFERENCE MADE A PART HEREOF. ' SUBJECT TO: COVENANTS, CONDITIONS, RESTRICTIONS,RIGHT OF WAY AND EASEMENTS OF RECORD. PREPARED UNDER THE SUPERV ION OF: t p 1PL LAND S. ,� -�' c, G Y S. BORCHARD, LS 7705 a �� MY GISTRATION EXPIRES: 12/31/08 L S NO. 7705 EXP. 12-31-C DF CAt1F�;' 1 I ► ► i I P 0 059 AC* I I ► LOT 1 SHEET 4 1 7 I I I ► I 1 I I SCALE.• 1"=200' I I 1 SHEET 3 1 ► I I PARCEL 1 R.S.B. I a481 AC* 4 15I I SHEET 2 I I i 1 LOT 69 ► ► 70 I 1 71 7875 72 6 S75 TRACT O8087 343352 /40 M.M. 331\ 27-32 41 .51 50 EXHIBIT "B" WRC 9HARD 8UFVWEYFNGI SKETCH TO ACCOMPANY &M A PP IN O. INC 1 A LEGAL DESCRIPMON FOR 815 CALLE PUENTE OPEN SPACE EASEMENT SAN CLEMENTE. CA 92872 PARCELS 1 & 2 PHONE (949)43e-46e2 CONTAINING. 0.540 AC. t SHEET 1 OF 4 SHEETS MARCH 28, 2007 MBF07002 'rl s 1' SEE SHEE 3 N745051 146.52' N8134'11"E -- 63.18' v N4407'52"E LOT 40.49' 7 ,W N622229 E h41.70' PARCEL81 1 N63 4z 20"W SCALE: 10 = 60' 38.15 N73'03'23"E N0657'29 34.98' 30.21' N640227 E N55*11'05£ 31.04' 17.86' T.P.0.9. PARCEL 1 � N1073 07E 24,02'N7572'06"W LOT B R.5.B. '32q?R. 3s 4- 4 15 h� TRACT Alo, 8087 2s• 70 ?s• o � 58 � •'� NI.M. 339/ a4 „0 27--32 67 m� 71 Q� o.a ss V Cq 55 72 ',y�R " EXHIBIT B" WROKARD SKETCH TO ACCOMPANY S M A P P I N O.INC A LEGAL DESCRIPTION FOR 815 CALLE PUENTE OPEN SPACE EASEMENT SAN CLEMENTE. CA 92872 PARCELS 1 & 2 PHONE. (9""-"82 CONTAINING: 0.540 AC. t SHEET 2 OF 4 SHEE MARCH 28. 2007 MBF07002 t{i t SEE SHEET 4 1 1 N69 3719E N68 01'43E 78.18 176.34' 0 b aW W W P'v Lor zA 7 N72'43'12"E N57'45'Il E 3283' 44.03' N6501'46 E N5139'31 E 50.84' 45.46' SCALE: 1" s 60' n n 0 N725838 E 66.80' a PARCEL 1 ' g 0.481 AGt n 2 N79'11'47"E 41.76' N6173'56 E p 44.27' N6707'43"E 53.66' h 1 2 N8134'1 f E 63.18' SEE SHEET 2 EXHIBIT �B" 60RCKA WRVEYNO SKETCH TO ACCOMPANY •N A V P I N A. I N C ' A LEGAL DESCRIPTION FOR 818 CALLE PUENTE OPEN SPACE EASEMENT SAN CLEMENM CA 22672 439-4882 PARCELS 1 & 2 PHONE � � CONTAINING: 0.540 AC. f SHEET 3 OF 4 SHEETS MARCH 26. 2007 MBF07002 N58'S8'10"W 28.3 NO3'00'34 E 4.38' )48079 12.83' — 4.38' N3836'00 E 13.07' N54'17'13 E 50.91' N47 4157"£ 35.42' N5275'16"£ N5274'40 E 42.35' 66.34' N5442'34 E 46.80' I i N6378'07"E N6533370E 71,81' 61.09PARCEL 2 0.059 A.C..t N65 40'33"E 17.51' v h rn SCALE: 1" = 60 )46634'03"E 6Z 92' _ -- T,P.aa h PARCEL 2 `� 4'49 1'1.30460 )42473'00"W ' 14.01' N78'35'U E 24.99' PCL 2 N58 36'01 E 30.33' n N6776'S8"E 66.23' PARCEL 1 W 0.481 A.C.f M v A N69 37'19 E 2 78.18' SEE SHEET 3 EXHIBI T "B" BONC11MD8lMVEY1N0 SKETCH TO ACCOMPANY &MAP P 1 N O. INC A LEGAL DESCRIPTION FOR 815 CALLS PUENTE OPEN SPACE EASEMENT SAN C.EMENTE, CA 92672 PARCELS 1 & 2 PHONE: (949)439-4662 CONTAINING: 0.540 AC. f SHEET 4 OF 4 SHEE MARCH 26, 2007 M13F070 22 EXHIBIT C Mitigation Plan 1 288664 17 6/28/2007 10.02 AM Reservoir Canyon Habitat Mitigation and Monitoring Plan for the 760 Zone SC-04 Reservoir Project Pursuant to the Condition Concurrence with the Special 4(D) Rule Interim Habitat Loss Mitigation Plan (IHLMP) for the Project (FWS/CDFG-OR-1602.3, CDFG 1066-2004- 0040-115, ACOE No. 200400717-CLM, RWQCB File No. 04C-010) Proposed Amendment of CSS and Wetland Elements Prepared for City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 Attn: Peter Salgado Prepared by ti Jeffrey B. Froke, Ph.D. California Wildlife Ecology jbfroke@mac.com February 21 , 2007 ' EXHIBIT D Title Report 1 1 288664 18 6/28/2007 10.02 AM Order No.M331945.6 ORANGE COAST TITLE COMPANY 640 NORTH TUSTIN #208 SANTA ANA, CA 92705 (714)558-2836 (800) 540-3515 PRELIMINARY REPORT SAN JUAN CAPISTRANO 32,400 JUAN CAPISTRANO SAN JUAN CAPISTRANO,CA Your no.: SAN JUAN CAPISTRANO Attention: KATHLEEN Order no: M331945-6 In response to the above referenced application for a policy of title insurance, Orange Coast Title Company hereby reports that it is prepared to issue,or cause to be issued,as of the date hereof, a policy or policies of title insurance describing the land and the estate or interest therein hereinafter set forth, insuring against loss which may be sustained by reason of any defect, lien or encumbrance not shown or referred to as an exception below or not excluded from coverage pursuant to the printed schedules,conditions and stipulations of said policy forms. The printed exceptions and exclusions from the coverage of said policy or policies are set forth in Exhibit A attached. Copies of the policy forms should be read. They are available from the office,which issued this report. Please read the exceptions shown or referred to below and the exceptions and exclusions set forth in Exhibit A of this report carefully. The exceptions and exclusions are meant to provide you with notice of matters, which are not covered — ! under the terms of the title insurance policy and should be carefully considered. i It is important to note that this preliminary report is not a written representation as to the condition of title and may not list all liens,defects,and encumbrances affecting title to the land. This report(and any supplements or amendments hereto)is issued solely for the purpose of facilitating the issuance of a policy of title insurance and no liability is assumed hereby. If it is desired th8t liability be assumed prior to the issuance of a policy of title insurance,a binder or commitment should be requested. Dated as of DECEMBER 24,2003 at 7:30 A.M. V KEVIN REICHLING TITLE OFFICER PAX(714)836-0349 KEVINR@OCTITLE.COM The form of Policy of Title Insurance contemplated by this report is: PRELIMINARY REPORT The premium for a Policy of Title Insurance,if issued will be based on: CONTRACT RATE i Order No.M331945-6 SCHEDULE"A" The estate or interest in the land hereinafter described or referred to covered by this report is: A FEE Title to said estate or interest at the date hereof is vested in: CITY OF SAN JUAN CAPISTRANO The land referred to in this report is situated in the County of ORANGE,State of California,and is described as follows: THAT CERTAIN PARCEL OF LAND BEING DESIGNATED AS ORANGE COUNTY TAX ASSESSOR'S PARCEL NO. 675-011-27,BEING A PORTION OF THE LAND DESCRIBED AS FOLLOWS: i SECTION 18,TOWNSHIP 8 SOUTH,RANGE 7 WEST,AND SECTION 13,TOWNSHIP 8 SOUTH,RANGE 8 WEST,SAN BERNARDINO BASE AND MERIDIAN,COUNTY OF ORANGE,STATE OF CALIFORNIA. EXCEPTING THEREFROM AN UNDIVIDED ONE-HALF INTEREST IN ALL OIL, GAS AND OTHER HYDROCARBON SUBSTANCES IN,UPON AND UNDER SAID LAND, TOGETHER WITH THE INCOME ACCRUING THEREFROM, AS RESERVED BY HOWARD L. KRUM AND FAY WILSON KRUM,HUSBAND AND WIFE,BY DEED RECORDED JUNE 8, 1956 IN BOOK 3538 PAGE 550 OF OFFICIAL RECORDS AND RERECORDED JULY 20, 1956 IN BOOK 3584,PAGE 339 OF OFFICIAL RECORDS. ' ALSO EXCEPTING ALL MINERALS, OIL, GAS, PETROLEUM, OTHER HYDROCARBON SUBSTANCES AND ALL UNDERGROUND WATER, IN OR UNDER OR WHICH MAY BE PRODUCED FROM THE PROPERTY, WITH ALL RIGHTS OF SURFACE ENTRY, TOGETHER WITH A PERPETUAL RIGHT TO DRILL, MINE, EXPLORE AND OPERATE THEREFOR AND REMOVE THE SAME FROM THE PROPERTY,OR ANY OTHER LAND,INCLUDING THE RIGHT TO WHIPSTOCK OR DIRECTIONALLY DRILL AND MINE FROM THE PROPERTY OIL AND GAS WELLS, TUNNELS AND SHAFTS INTO,THROUGH OR ACROSS THE PROPERTY AND TO BOTTOM SUCH WHIPSTOCK OR DIRECTIONALLY-DRILLED WELLS, TUNNELS AND SHAFTS UNDER, BENEATH OR BEYOND THE EXTERIOR LIMITS OF THE PROPERTY AND TO REDRILL,RETUNNEL,EQUIP,MAINTAIN, REPAIR,DEEPEN AND OPERATE ANY SUCH WELLS OR MINES,AS RESERVED IN THE DEED RECORDED OCTOBER 25, 1993 AS INSTRUMENT NO. 93-072590 OF OFFICIAL RECORDS, NOTE: THE ABOVE LEGAL DESCRIPTION IF FOR THE SOLE PURPOSE OF THIS REPORT AND MAY NOT BE CONSIDERED FOR USE IN ANY POLICY OF TITLE INSURANCE TO BE ISSUED BY THIS COMPANY AND IS SUBJECT TO CHANGE AT ANY TIME. Order No.M331945-6 SCHEDULE"B" At the date hereof exception to coverage in addition to the printed exceptions and exclusion contained in said policy form would be as follows: A. ACCORDING TO THE LATEST AVAILABLE EQUALIZED ASSESSMENT ROLL IN THE OFFICE OF THE COUNTY TAX ASSESSOR'S PARCEL NUMBER(S) FOR THE HEREIN MENTIONED LEGAL DESCRIPTION LEGAL DESCRIPTION IS 675-011-27. IT 1S A WHOLLY OWNED AND FULLY EXEMPTED GOVERNMENTAL PROPERTY. B. THE LIEN OF SUPPLEMENTAL TAXES,IF ANY,ASSESSED PURSUANT TO THE PROVISIONS OF SECTION 75, ET SEQ.OF THE REVENUE AND TAXATION CODE OF THE STATE OF CALIFORNIA. ASSESSMENTS, IF ANY, FOR COMMUNITY FACILITIES DISTRICTS AFFECTING SAID LAND, WHICH MAY EXIST BY VIRTUE OF ASSESSMENT MAPS OR NOTICES 14LED BY SAID DISTRICTS. ANY UNPAID AND/OR DELINQUENT BOND OR ASSESSMENT AMOUNTS WHICH MAY HAVE BEEN REMOVED FROM THE ROLLS OF THE COUNTY TAX ASSESSOR AND WHICH MAY HAVE BEEN REMOVED FROM THE TAX BILLS AND TAX DEFAULT REDEMPTION AMOUNTS. I) A RIGHT OF WAY 6 FEET WIDE OVER THE MOST SOUTHWESTERLY PORTION OF THE LAND FOR PIPES AND INCIDENTAL PURPOSES FOR THE FOWLER PIPE LINE,TO CONDUCT WATER FROM SAN JUAN CREEK PUMPING PLANT SERVING SAID LAND AND ITS RESERVOIRS,AS RESERVED IN THE DEED FROM BANK OF ITALY NATIONAL TRUST AND SAVINGS ASSOCIATION, RECORDED NOVEMBER 14, 1928 IN BOOK 212 PAGE 425 OF OFFICIAL RECORDS AND AS DESCRIBED IN OTHER INSTRUMENTS OF RECORDS. 2) AN EASEMENT FOR PURPOSES HEREIN STATE6,AND RIGHTS INCIDENTAL THERETO AS PROVIDED IN AN INSTRUMENT RECORDED: NOVEMBER 5, 1930 IN BOOK 431 PAGE 270,OFFICIAL RECORDS — FOR: EITHER OR BOTH POLE LINES,CONDUITS AND INCIDENTAL PURPOSES IN FAVOR OF: SAN DIEGO CONSOLIDATED GAS&ELECTRIC COMPANY AFFECTS: A 20-FOOT STRIP ACROSS PORTIONS OF SAID LAND. 3) AN EASEMENT FOR PURPOSES HEREIN STATED,AND RIGHTS INCIDENTAL THERETO AS PROVIDED IN AN INSTRUMENT RECORDED: DECEM13ER 2.1931 IN BOOK 523 PAGE 161,OFFICIAL RECORDS FOR: EITHER OR BOTH POLE LINES,CONDUITS AND INCIDENTAL PURPOSES IN FAVOR OF: SAN DIEGO CONSOLIDATED GAS&ELECTRIC COMPANY AFFECTS: A PORTION OF SAID LAND. 4) AN EASEMENT FOR PURPOSES HEREIN STATED,AND RIGHTS INCIDENTAL THERETO AS PROVIDED IN AN INSTRUMENT RECORDED: DECEMBER 2,1931 IN BOOK 521 PAGE 206,OFFICIAL RECORDS FOR: EITHER OR BOTH POLE LINES,CONDUITS AND INCIDENTAL PURPOSES _ IN FAVOR OF., SAN DIEGO CONSOLIDATED GAS&ELECTRIC COMPANY AFFECTS: A PORTION OF SAID LAND. 5) AN EASEMENT FOR PURPOSES HEREIN STATED,AND RIGHTS INCIDENTAL THERETO AS PROVIDED IN AN INSTRUMENT RECORDED: FEBRUARY 6, 1954 IN BOOK 6914 PAGE 546,OFFICIAL RECORDS FOR: INGRESS,EGRESS,PIPE LINE,POLE LINES AND INCIDENTAL PURPOSES IN FAVOR OF: COUNTY OF ORANGE, FOR AND IN BEHALF OF ORANGE COUNTY WATER WORKS DISTRICT NO.4 AFFECTS: PORTIONS OF SAID LAND. 6) THE EFFECT OF A MAP PURPORTING TO SHOW THE HEREIN DESCRIBED AND OTHER LAND RECORDED IN BOOK 91,PAGE 29 OF RECORD OF SURVEYS. ; 3 i- Order No.M331945-6 7) AN EASEMENT FOR PURPOSES HEREIN STATED,AND RIGHTS INCIDENTAL THERETO AS PROVIDED IN AN INSTRUMENT RECORDED; AUGUST 24, 1973 IN BOOK 10869 PAGE 6l,OFFICIAL RECORDS FOR: ACCESS,INGRESS AND EGRESS AND INCIDENTAL PURPOSES IN FAVOR OF: LEADERSHIP HOUSING SYSTEMS,INC. AFFECTS: A PORTION OF SAID LAND. 8) AN EASEMENT FOR PURPOSES HEREIN STATED, AND RIGHTS INCIDENTAL THERETO AS PROVIDED IN AN INSTRUMENT RECORDED: AUGUST 30,1974 IN BOOK 11232 PAGE 1968,OFFICIAL RECORDS FOR: WATER PIPELINES AND INCIDENTAL PURPOSES IN FAVOR OF: ORANGE COUNTY WATERWORKS DISTRICT NO.4 AFFECTS: A PORTION OF SAID LAND. 9) THE EFFECT OF A MAP PURPORTING TO SHOWN THE HEREIN DESCRIBED AND OTHER LAND RECORDED IN BOOK 95 PAGE I1 OF RECORD OF SURVEYS. 10) AN EASEMENT FOR PURPOSES HEREIN STATED,AND RIGHTS INCIDENTAL THERETO AS PROVIDED IN AN INSTRUMENT RECORDED: SEPTEMBER 13,1976 IN BOOK 11884 PAGE 135,OFFICIAL RECORDS FOR: EITHER OR BOTH UNDERGROUND LINES, CONDUITS AND INCIDENTAL PURPOSES,INCLUDING ABOVE GROUND APPURTENANT FIXTURES . IN FAVOR OF: PACIFIC TELEPHONE AND TELEGRAPH COMPANY AFFECTS: A PORTION OF SAID LAND. 11) AN UNRECORDED DRILLSITE AGREEMENT AND AN UNRECORDED AGREEMENT, BOTH DATED JUNE 7, 1978, EXECUTED BY AND BETWEEN GLENDALE FEDERAL SAVINGS AND LOAN ASSOCIATION, A FEDERALLY CHARTERED SAVINGS AND LOAN ASSOCIATION AND CROCKER NATIONAL BANK, A NATIONAL BANKING ASSOCIATION, IN ITS RESPECTIVE CAPACITIES AS TRUSTEE UNDER THE WILL OF HOWARD L. KRUM,DECEASED,AND AS TRUSTEE UNDER THE WILL OF FAY WILSON ,DECEASED,UPON THE TERMS, PROVISIONS, CONDITIONS AND EASEMENTS THEREIN CONTAINED, AS DISCLOSED BY ' MEMORANDUM THEREOF, RECORDED JULY 31, 1978 IN BOOK 12779 PAGE 1633 OF OFFICIAL RECORDS, AFFECTING A PORTION OF THE LAND. 12) THE EFFECT OF AN UNRECORDED OIL AND GAS LEASE, EXECUTED BY CLARENCE C. REED, M.D. AND CLARENCE C. REED MEMORIAL TRUST FUND,AS LESSOR AND BY GEORGE L. GUTHRIE, AS LESSEE, AS DISCLOSED BY A SHORT FORM OF THE LEASE RECORDED APRIL 14, 1983 AS INSTRUMENT NO. 83-157136 OF OFFICIAL RECORDS,PURPORTING TO COVER A PORTION OF THE HEREIN DESCRIBED LAND. NOTE: AT THE TIME OF EXECUTION OF SAID LEASE,THE LESSORS HAD NO RECORD RIGHT,TITLE OR INTEREST IN THE LAND,NOR HAVE THEY SINCE ACQUIRED ANY. 13) THE EFFECT OF ARTICLE XIV,ENTITLED"OBLIGATIONS OF DECLARANT PRIOR TO INITIATION DATE"OF THAT CERTAIN 'DECLARATION OF COVENANTS, CONDITIONS AND RESTRICTIONS RE RECREATIONAL VEHICLE PARKING SITE" RECORDED NOVEMBER 4, 1983 AS INSTRUMENT NO, 83-488373 OF OFFICIAL RECORDS, WHEREIN THE HEREIN DESCRIBED AND OTHER LAND ARE SET FORTH AS ANNEXABLE PROPERTY. AT THE DATE HEREOF,THE HEREIN DESCRIBED LAND HAS NOT BEEN ANNEXED. 14) AN ACTION COMMENC13D (NO DATE SET OUT IN RECORDED INSTRUMENT) AND NOW PENDING IN THE SUPERIOR COURT OF THE STATE OF CALIFORNIA,FOR THE COUNTY OF ORANGE,CASE NO.398090 PLAINTIFF:: CLARENCE C. REED, M.D., A MARRIED MAN AS HIS SEPARATE PROPERTY, CLARENCE C.REED,M.D.,AS TRUSTEE OF THE CLARENCE C.REED MEMORIAL TRUSTFUND DEFENDANT: JAMES W. DIFFLEY, AS TRUSTEE UNDER TRUST DATED FEBRUARY 12, 1972 FOR THE BENEFIT OF JAMES W. DIFFLEY, D.D.S., INC. PENSION AND PROFIT SHARING PROGRAM,ET AL. CROSS-COMPLAINANT CROCKER NATIONAL BANK, A NATIONAL BANKING ASSOCIATION, AS - TRUSTEE UNDER THE WILL OF HOWARD L.KRUM,DECEASED,ET AL CROSS-DEFENDANT: JAMES W. DIFFLEY, AS TRUSTEE UNDER TRUST DATED FEBRUARY 12, 1972, _ FOR THE BENEFIT OF JAMES W. DIFFLEY, D.D.S., INC. PENSION AND PROFIT ' SHARING PROGRAM,ET AL TO/FOR; TO QUIET TITLE AND FOR DECLARATORY RELIEF ITEM NO 14 CONTINUED-- n Order No.M331945-6 ITEM NO 14 CONTINUED-- NOTICE OF PENDENCY OF SAID ACTION WAS RECORDED MARCH 10, 1983 AS INSTRUMENT NO- 83-104721 OF OFFICIAL RECORDS AND DECEMBER 27, 1983 AS INSTRUMENT NO. 83-584869 OF OFFICIAL RECORDS. 15) A 'CERTIFICATE OF COMPLIANCE",AFFECTING THE HEREIN DESCRIBED AND OTHER LAND, RECORDED JANUARY 9, 1985 AS INSTRUMENT NO. 85-007171 OF OFFICIAL RECORDS, CERTIFYING THAT THE LAND DESCRIBED THEREIN CONSTITUTES A LAWFULLY CREATED PARCEL IN FULL COMPLIANCE WITH THE STATE SUBDIVISION MAP ACT AND LOCAL ORDINANCES ENACTED PURSUANT THERETO, 16) THE TERMS, PROVISIONS AND CONDITIONS CONTAINED IN DOCUMENT ENTITLED "MEMORANDUM OF SETTLEMENT AGREEMENT", EXECUTED BY AND BETWEEN NORTHERN TRUST BANK OF CALIFORNIA, N.A.,EXECUTOR OF THE ESTATE OF CLARENCE C.REED,M.D.,DECEASED AND AS SUCCESSOR TO TRUST SERVICES OF AMERICA, INC. AND TITLE INSURANCE AND TRUST COMPANY, A CALIFORNIA CORPORATION AS TRUSTEE UNDER DECLARATION OF TRUST 02-60942, DATED JANUARY 22, 1964 AND THE REGENTS OF THE UNIVERSITY OF CALIFORNIA,A CALIFORNIA CORPORATION,GLENDALE FEDERAL !a BANK,FEDERAL SAVINGS BANK,A UNITED STATES CORPORATION,COUNTY OF ORANGE,A MUNICIPAL CORPORATION, WILLIAM E. HOLMES AND MARGARET FERN HOLMES, AS HUSBAND AND WIFE, WELLS FARGO BANK, A NATIONAL ASSOCIATION,SUCCESSORS-IN-INTEREST TO CROCKER NATIONAL BANK, A NATIONAL BANKING ASSOCIATION, IN ITS CAPACITY AS TRUSTEE UNDER THE WILL OF HOWARD L KRUM AND GEORGE L GUTHRIE , RECORDED OCTOBER 15, 1993 AS INSTRUMENT NO. 93-0704485 OF OFFICIAL RECORDS, 17) NON-EXCLUSIVE EASEMENTS FOR THE OPERATION, FLOW, PASSAGE, USE, MAINTENANCE, CONNECTION, SERVICE, REPAIR AND REPLACEMENT-OF WATER AND GAS MAINS, STORM AND SANITARY SEWERS, ELECTRICAL SERVICE, TELEPHONE SERVICE, CABLE TELEVISION SYSTEMS AND OTHER CABLE SERVICE SYSTEMS AND OTHER UTILITY AND DRAINAGE LINES AND FACILITIES SERVING GRANTOR'S PROPERTY IN, OVER, UNDER AND ACROSS AND THROUGH ALL OF THE PROPERTY, TOGETHER WITH THE RIGHT TO GRANT SAME AND THE RIGHT OF ENTRY IN CONNECTION WITH INSTALLATION AND MAINTENANCE THEREOF;AS RESERVED IN THE DEED RECORDED OCTOBER 25,1993 — AS INSTRUMENT NO.93-072549,0 OF OFFICIAL RECORDS. 18) EXCLUSIVE EASEMENTS ON, ACROSS AND OVER ME PROPERTY, FOR THE PURPOSE OF LOCATING, IMPROVING, MAINTAINING AND TRAVERSING ALL ROADWAYS REQUIRED BY ANY GOVERNMENTAL AGENCY TO SERVICE GRANTOR'S PROPERTY; AS RESERVED IN THE DEED RECORDED OCTOBER 25, 1993 AS INSTRUMENT NO.93-0725490 OF OFFICIAL RECORDS. 19) NON-EXCLUSIVE EASEMENTS ON, ACROSS, OVER AND UNDER THE PROPERTY FOR THE PURPOSE OF CONDUCTING SURVEYS AND SOILS TESTS. GRANTOR SHALL RESTORE AS NEAR AS POSSIBLE THE LAND AFFECTED TO THE CONDITION IMMEDIATELY PRECEDING SUCH TESTS, AS RESERVED IN THE DEED RECORDED OCTOBER 25, 1993 AS INSTRUMENT NO.93-0725490 OF OFFICIAL RECORDS. 20) THE CONDITION,CHARACTER AND DEFINITION IMPOSED IN THE DEED RECORDED OCTOBER 25, 1993 AS INSTRUMENT NO, 93-0725490 OF OFFICIAL RECORDS,RECITES IN PART ALL SOUTH PUBLIC LAND TO BE CONVEYED BY THE GRANTOR TO THE GRANTEE PURSUANT TO THE TERMS OF AGREEMENT FOR CONVEYANCE OF LAND ENTERED ]NTO IN 1979 SHALL BE SO CONVEYED UPON THE EXPRESS CONDITION THAT THE LAND BE USED SOLELY FOR"PUBLIC USE"AS USED HEREIN SHALL MEAN USE OF THE LAND FOR PUBLIC FACILITIES AND SERVICES UNDER THE DIRECT CONTROL OF THE CITY OR A PUBLIC AGENCY BUT SHALL NOT INCLUDE USE FOR RESIDENTIAL OR COMMERCIAL PURPOSES,EXCEPT AS PROVIDED IN ARTICLE 3.5, SECTION 3.3.12 OF THE PLANNED COMMUNITY COMPREHENSIVE DEVELOPMENT PLAN. 21) AN EASEMENT FOR PURPOSES HEREIN STATED,AND RIGHT'S INCIDENTAL THERETO AS PROVIDED IN AN INSTRUMENT RECORDED: AUGUST 28, 1992 AS INSTRUMENT NO.92-580725,OFFICIAL RECORDS FOR: OVERHEAD AND/OR UNDERGROUND FACILITIES FOR DISTRIBUTION OF ELECTRICITY AND COMMUNICATION FACILITIES AND INCIDENTAL PURPOSES IN FAVOR OF: SAN DIEGO GAS AND ELECTRIC COMPANY AFFECTS: A PORTION OF SAID LAND. 4 S Order No.M331945.6 22) NOTE: INFORMATION IN POSSESSION OF THIS COMPANY INDICATES THAT A DIVISION OF LAND IS CONTEMPLATED IN THE CURRENT TRANSACTION INVOLVING LAND DESCRIBED IN THIS REPORT. SUCH ' CONTEMPLATED DIVISION OF LAND WOULD APPEAR TO FALL WITHIN THE PURVIEW OF THE SUBDIVISION MAP ACT (G.C. 66410 BT SEQ.) AS A PREREQUISrM TO THE ISSUANCE OF FINAL TITLE EVIDENCE, AT LEAST ONE OF THE FOLLOWING REQUIREMENTS MUST BE ACCOMPLISHED TO THIS COMPANY'S SATISFACTION; (I) A SUBDIVISION MAP MUST BE RECORDED IN COMPLIANCE WITH THE SUBDIVISION MAP ACT OR RELATED LOCAL ORDINANCES; (2) A PARCEL MAP MUST BE RECORDED IN COMPLIANCE WITH THE SUBDIVISION MAP ACT OR RELATED LOCAL ORDINANCES; (3) A CERTIFICATE OF COMPLIANCE AS PROVIDED FOR IN THE SUBDIVISION MAP ACT (G.C. 66499.35) MUST BE RECORDED; (4) A WAIVER AS PROVIDED FOR IN THE SUBDIVISION MAP ACT(G.C.66428)MUST BE OBTAINED;OR - (5) OTHER SATISFACTORY EVIDENCE INDICATING COMPLIANCE OR NON-VIOLATION MUST BE FURNISHED. ti i i End of Schedule B KR/SK 1 6 Order No.M331945-6 "NOTES AND REQUIREMENTS SECTION" Note No.I — "California state senate bill number 2319, effective January 1, 1991, requires that the buyer in all sales of California real estate, wherein the seller shows an out of state address,withhold 3 1/3 %of the total sales price as California state income tax,subject to the various provisions of the law as therein contained." NOTE NO.2 PAYOFF INFORMATION, Note: this company does require current beneficiary demands prior to closing. If the demand is expired and a correct demand cannot be obtained,our requirements will be as follows: A. If this company accepts a verbal update on the demand,we may hold an amount equal to one monthly mortgage payment. The amount of this hold will be over and above the verbal hold the lender may have stipulated. B. If this company cannot obtain a verbal update on the demand, will either pay off the expired demand or wait for the amended demand,at the discretion of the escrow. C. In the event that a payoff is being made to a servicing agent for the beneficiary,this company will require a complete copy of the servicing agreement prior to close. Note No.3 If this company is requested to disburse funds in connection with this transaction, chapter 598, statutes of 1989 mandates hold periods for checks deposited to escrow or sub-escrow accounts. The mandatory hold is one business day after the day deposited. Other checks require a hold period from three to seven business days after the day deposited. Notice Regarding Your Deposit of Funds California Insurance Code Sections 12413 et Seg. Regulates the disbursement of escrow and sub-escrow funds by title companies. The law requires that funds be deposited in the title company escrow and sub-escrow accounts and be available for withdrawal prior to disbursement. Funds deposited with the Company by wire transfer may be disbursed upon receipt. Funds deposited with the Company via cashier's checks drawn on a California based bank may be disbursed the next business day after the day of deposit.If funds are deposited with by other methods,recording or disbursement may be delayed.All escrow and sub- escrow funds received by the Company will be deposited with other funds in one or more non-interest bearing escrow accounts of the Company in a financial institution selected by the Company. The Company and/or its parent company may receive certain direct or indirect benefits from the financial institution by reason of the deposit of such funds or the maintenance of such accounts with the financial institution, and the Company shall have no obligation to account to the depositing party in any manner for the value of, or to pay such party, any benefit received by the Company and/or its parent Company. Those benefits may include, without limitation,credits allowed by such financial institution on loans to the Company and/or its parent company and earnings on investments made on the proceeds of such loans, accounting, reporting and other services and products of such financial institution. Such benefits shall be deemed additional compensation of the Company for its services in connection with the escrow or sub-escrow. If funds are to be deposited with Orange Coast Title Company by wire transfer, they should be wired to i the following bank/account: COMERICA BANK 611 ANTON BOULEVARD COSTA MESA,CA 92626 ABA 121137522 ACCOUNT NO. 1891629857 CREDIT TO THE ACCOUNT OF ORANGE COAST TITLE _ PAYOFF FAX NO.(714)245.7780 Reference Tide Order No. M331945-6 and KEVIN REICHLING,title officer si t, 7 Order No.M331945-6 Attention ' Please note that this preliminary report now has an extra copy of the legal description on a separate sheet of paper. There are no markings on the page. The idea is to provide you with a legal description that can be attached to other documents as needed. Thank you for your support of Orange Coast Title Company. We hope that this makes your job a little easier. 's 'r r 8 Order No.M331945-6 Exhibit "A" THAT CERTAIN PARCEL OF LAND BEING DESIGNATED AS ORANGE COUNTY TAX ASSESSOR'S PARCEL NO. 675-011-27,BEING A PORTION OF THE LAND DESCRIBED AS FOLLOWS: SECTION 18,TOWNSHIP 8 SOUTH,RANGE 7 WEST,AND SECTION 13,TOWNSHIP 8 SOUTH,RANGE 8 WEST,SAN BERNARDINO BASE AND MERIDIAN,COUNTY OF ORANGE,STATE OF CALIFORNIA. EXCEPTING THEREFROM AN UNDIVIDED ONE-HALF INTEREST IN ALL OIL,GAS AND OTHER HYDROCARBON SUBSTANCES IN, UPON AND UNDER SAID LAND,TOGETHER WITH THE INCOME ACCRUING THEREFROM, AS RESERVED BY HOWARD L. KRUM AND FAY WILSON KRUM, HUSBAND AND WIFE, BY DEED RECORDED JUNE 8, 1956 IN BOOK 3538 PAGE 550 OF OFFICIAL RECORDS AND RE-RECORDED JULY 20, 1956 IN BOOK 3584,PAGE 339 OF OFFICIAL RECORDS. ALSO EXCEPTING ALL MINERALS, OIL, GAS, PETROLEUM, OTHER HYDROCARBON SUBSTANCES AND ALL UNDERGROUND WATER, IN OR UNDER OR WHICH MAY BE PRODUCED FROM THE PROPERTY, WITH ALL RIGHTS OF SURFACE ENTRY, TOGETHER WITH A PERPETUAL RIGHT TO DRILL, MINE, EXPLORE AND OPERATE THEREFOR AND REMOVE THF-SAME FROM THE PROPERTY,OR ANY OTHER LAND,INCLUDING THE RIGHT TO WHIPSTOCK OR DIRECTIONALLY DRE LL AND MINE FROM THE PROPERTY OIL AND GAS WELLS, TUNNELS AND SHAFTS INTO,THROUGH OR ACROSS THE PROPERTY AND TO BOTTOM SUCH WHIPSTOCK OR DIRECTIONALLY-DRILLED WELLS, TUNNELS AND SHAFTS TINDER, BENEATH OR BEYOND THE EXTERIOR LIMITS OF THE PROPERTY AND TO REDRILL, RETUNNEL, EQUIP,MAINTAIN, REPAIR, DEEPEN AND OPERATE ANY SUCH WELLS OR MINES,AS RESERVED IN THE DEED RECORDED OCTOBER 25, 1993 AS INSTRUMENT NO. 93-072590 OF OFFICIAL RECORDS. NOTE: THE ABOVE LEGAL DESCRIPTION IF FOR THE SOLE PURPOSE OF THIS REPORT AND MAY NOT BE CONSIDERED FOR USE IN ANY POLICY OF TITLE INSURANCE TO BE ISSUED BY THIS COMPANY AND IS SUBJECT TO CHANGE AT ANY TIME. si 9 i. Order No.M331945-6 CALIFORNIA LANDTITLE ASSOCIATION STANDARD COVERAGE POLICY—1990 EXCLUSIONS FROM COVERAGE The following matters aro 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 r of which Any law, ordinance or governmental regulation(including but not limited to building or zoning laws,ordinances,or regulations)restricting,regulating, prohibiting or relating(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 st famfion in Ownaship 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 a govemmeutal 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 govcmtnental police power not excluded by(a)above,except to the extent that a notice of the exercise thereof or notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has ban recorded In the public records at Date of Policy. 2. Rights of eminent domain unless notice of the exorcise thereof has been recorded in the public records at Date of Policy,but not excluding from coverage any taking which has occurred print to Date of Policy which would be binding on the rights of a purchases for value without knowledge. 3. Defects,liens,encumbrances,adverse claims or other matter: (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 Was 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 bean sustained if the insured claimant had paid value for the insured mortgage or for the estate or interest insured by this policy- 4. Unenfmceabibly 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 subs Delta owner of the indebtedness,to comply with the applicable doing business laws of the state in which the land is situated S. 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 inured the estate of interest insured by this policy or the transaction westing the interest of the insured lender,by reason of the operation of federal bankruptcy,state insolvency or similar creditors'rights laws. EXCEPTIONS FROM COVERAGE-SCHEDULE B,PART I Ibis policy does not insure against loss or damage(and the Company will not pay Costs,atteaneys'fees or expenses)which arise by reason of: 1. Taxes or assessments which are not shown as exislin�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 m 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,interest,or chins which arc not shown by the public records but which could be ascertained by an inspection of the land which may be asserted by persona in possession thereof. 3. Easements,kens or encumbrances,or claims thereof,which are not shown by the public records. 4. Discrepancies,conflicts in boundary lines, shortage in area,eneroachrmn s,or any other fats 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 patens or in Acs 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. CLTA HOMEOWNER'S POLICY OF TIME INSURANCE(6/2/96) & ALTA HOMEOWNER'S POLICY OF TIME INSURANCE(10117/98)EXCLUSIONS FROM COVERAGE In addition to the Exceptions in Schedule B,You are not insured against loss,toss,attorneys'fees,and expenses resulting from: 1. GDVMMMlal police power,and the existence or violation of any law or govemment regulation. This includes ordinances,laws and regulations concerning. (a) building; (b) sterling;(c)Land use; (d)Improvements on Land;(e) Land division;(f)environmental protection. This Exclusion does not apply to violations or she enforcement of time matters if notice of the violation or enforcement appear in the Public Records at the Policy Date. This Exclusion does not limit the coverage described in Covered Risk 14,15,16,17,a 24. 2. The failure of Your existing structures,or any pan 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 Data 3. The right to lake the Land by condemning it, unless (a)notice of exercising the right appears in the Public Records at the Policy Date; (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 arc 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 Dale-this does not limit the coverage described in Covered Risk 7,SA,24 23,24 or 25. 5. Failure to pay value fm Your Tis, 6. Lack of a right:(a)to any Lend 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. Tits Exclusion does not limit the coverage described in Covered Risk I1 or 18. AMERICAN LAND TITLE ASSOCIATION RESIDENTIAL TIME INSURANCE POLICY(6.1.87) EXCLUSIONS FROM COVERAGE In addition to the Exceptions in Schedule B,you ere not insured against loss,costs,attorneys'fees,and expos=resulting from: 1. Govemnuarld police power,and the"late=or violation of any law or government regulation. This includes building and zoning ordinances and also laws and regulations concerning:land use,improvements on the land,land division or environmental protection. Ibis exclusion does not apply to violations or the enforcement of these matters which appear in the public records at Policy Date. This exclusion does nes limit the zoning coverage described in Items 12 and 13 of Covered Title Risks. 2. The right to tike the land by condemning it,unless:a notice of exercising the tightappears in the public records,on the Policy Date,the taking happened prior to the Policy Das and is binding on you if you bought the land without knowing of the taking 3. Title Risks:that am created,allowed, or agreed to by you;that are lams"to you,but not to us,on the Policy Date-- unless they appeared in the public records;that result in no loss to yon; that first affect your title after the Policy Date--this does not limit the labor and material lien coverage in Item 8 of Covered Mile Risks 4. Failure to pay value fm your title. 5. Lack of a right.to any land oumide the area specifically described and referred to in Item 3 of Schedule A; OR in streets,alleys,or waterways that touch your land. This exclusion does not limit the access coverage in Item 5 of Covered Mile Risks. s 1 Order No.M331945-6 AMERICAN LAND TITLE ASSOCIATION LOAN POLICY(10-17.92) WITH ALTA ENDORSEMENT-FORM 1 COVERAGE& AMERICAN LAND TITLE ASSOCIATION LEASEHOLD LOAN POLICY(10-17.92) WITH ALTA ENDORSEMENT-FORM I COVERAGE EXCLUSIONS FROM COVERAGE The following matters aro expressly excluded from the coverage of this policy and the Company will not pay loss or damage costs,attorneys'fees m expenses Which arise by reason of: 1. (a) Any law, ordinance m governmental regulation (including but not limited to building and zoning laws, ordinances, or regulations) restricting, regulating,prohibitiog or relating to(t)the Occupancy,use,a enjoyment of the land;(ii)the character,dimensions or location of any improvement now or hercalla 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 wasa part; or(iv)environmental protection,or the effect of any violation of these laws,unbeaten ten Or gavemmental 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 ban recorded in the public records at Dale 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 ban 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,Sens,eocumbrances,adverse claims or other matters: (a) mated,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 prim to the date the insured cWn=t 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 It=of the insured mortgage ova any statutory,hen for services, labor or material or to the extent insurance is afforded herein as to assessments for street improvements under construction or completed at date of policy);or (e) resulting in loss a damage which would not have been sustained if the insured claimant had paid value for the insured mortgage. 4. Unenforceability,of the lien of the insured mortgage because of the inability Or failure of the insured at Date of Policy,or the inability or failure of any subsequent owner of the indebtedness,to comply with applicable doing business laws of the state in which the land is situated. 5. Invalidity or unenforceability of the lien of the insured mortgage or claim thereof,which arises out of the transaction evidenced by the insured mortgage and is based upon usury Or any consumer credit protection Or troth In lending law, 6. Any statutory Ileo for services,labor or materials(or the claim of priority of any statutory gm 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 fm and commenced subsequent to Date of Policy and is nm financed in whole a in pan by proceeds of the indebtedness secured by the insured mortgage which at Date of Policy the insured has advanced or is obligated to advance. T Any claim,which arises out of the transaction crating the interest of the mortgagee insured by(his policy,by reason of the operation of federal bankruptcy, state insolvency,or similar aeditors'rights laws,that is based on: (i)the transaction crating the interest of the insured mortgagee being deemed a fraudulent conveyance or fraudulent transfer;or (it)the subordination of the interest of the insured mortgagee as a result of the application of the doctrine or equitable subordination;or- (i ill (iii)the transaction crating the interest of the insured mortgagee being deemed a preferendal transfer except where the preferential transfer results from the failme:(a)to timely record the instrument of transfer;or of such recordation to impart notice to a purchaser for value or a judgement or gen creditor. AMERICAN LAND TITLE ASSOCIATION OWNER'S POLICY(10.17-92)& — AMERICAN LAND TITLE ASSOCIATION LEASEHOLD OWNER'S POLICY(10.17.92) EXCLUSIONS FROM COVERAGE The following matters are exprasly excluded from the coverage of this policy and the Company will not pay Ions w damage,costs,attorneys feu Or expenses which arise by mason of: 1. (a) Any law, Ordinance a governmental regulation (including but not limited to building and zoning laws, ordinances, or regulations) restricting, regulating,prohibiting Or relating to(t)the occupancy,use,Or enjoyment of the land; (ii)the character,dimensions Or location of any improvement now or he after anted on the land; (iii)a separation in ownership or a change in the dimeusicus Or area of the laud 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 goverumentai regulations,except to the extent that a Alice of the enforcement thereof Or a uotice of a defect,lite or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in rhe 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 my taking which has occurred prim to Date of Policy which would be binding on the rights of a purchaser for value without knowledge. 3. Defects,lies,encumbrances,adverse claims or other matters; (a) crated,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 claitam; ,n (d) attaching or anted subsequent to Date of Policy;or (e) resulting in loss or damagge 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 om (i) the transaction creating the estate or interest normal by this policy being deemed a fraudulent conveyance or fraudulent transfer;or (ii) the transaction crating 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 judgement Or lien creditor. The above policy forms may be issued to afford eitha Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage,the Exceptions from Coverage in a Standard Coverage Policy will also include rhe following Game]Instructions! SCHEDULE E-EXCEPTIONS FROM COVERAGE This policy don not insure against loss or damage(and the Company will not pay costs,attorneys'fees or expenses)which arise by trim Of. 1. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxa Or assessments on real property Or by the public records. Proceedings by a public agency which may result in taxa or assessments,Or notices of such proceedings,whether or not shown by the records of such agency Or by thepublic records. 2. Any facts,rights,imerats or claims which are not shown by the public records but which could be ascertained by an inspection of the land or by making inquiry of pentons in possession thereof. — 3. Basements,liens or encumbrances,or claims thereof,which are not shout/by the public records. 4. Discrepancies, conflicts In boundary tines,shortage in now,enerachnsents,or any other facts which a cortect survey would disclose, and which are not shown by the public records. _ 5. (a)Unpetented 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 2 Order No.M331945-6 ORANGE COAST 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 that you provide to us. Therefore, 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 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. 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. o 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 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. 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 beat 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 that 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. We currently maintain physical, electronic, and procedural. safeguards that comply with federal regulations to guard your nonpublic personal information. EXHIBIT E Map of Natural Condition of the Restricted Property 288664 19 6/28/2007 10.02 AM 17n `o _ �. pie rr/t5. ,Cs t � K, s .k "'': y S H a xAV { ij /r r - _ i C �c 9• r r - r g v v51 z r TOPOGRAPHIC MAP 760S ZONE SOUTH TERMINAL RESERVOIR PROPOSED • WETLAND ENHANCEMENT AREA LU LL Ld w LLI LU Z UJmxz ; �yv�������� y\�(lr���1111��1w ��,����`��`� \ vv` ` ' OW V0- o a. z x' .. ! iilllli � ! I � III���/�rr� "' Al I IIII I( vF' O ' RECORDING AT REQUEST OF AND RETURN TO: City of San Juan Capistrano City Clerk's Office 32400 Paseo Adelanto San Juan Capistrano, CA 92675 RECORDING FEES EXEMPT DUE TO GOVERNMENT CODE 27383 & 6103 CITY OF SAN JUAN CAPISTRANO DECLARATION OF RESTRICTIVE COVENANTS (APN 675-261-05, CITY OF SAN JUAN CAPISTRANO, COUNTY OF ORANGE) This DECLARATION OF RESTRICTIVE COVENANTS ("Restrictive Covenant") is made this day of , 2007 by the City of San Juan Capistrano, a Municipal Corporation lawfully existing under the laws of the State of California (hereinafter "Declarant"). RECITALS ' A. Declarant is the developer of that certain real property in the City of San Juan Capistrano, County of Orange, State of California, commonly referred to as the Terminal Reservoir No. 3 Project—Off-site Mitigation at Acu Canyon (the "Project"). B. Declarant is the sole owner in fee simple of those portions of the Project legally described at Exhibit "A" and depicted at Exhibit "B," attached hereto and incorporated by this reference (the"Restricted Property"), which consists of approximately 0.34 acres. C. The Restricted Property provides, among other things, compensatory mitigation for certain impacts of the Project by Declarant pursuant to requirements of the United States Arany Corps of Engineers' ("ACOE") Section 404 Permit No. 200401374-CJF and amendments thereto ("Section 404 Permit"). D. This Restrictive Covenant is designed to satisfy and is granted in satisfaction of Special Condition 4.2.4 of the Section 404. E. Consistent with the terns and conditions of this Restrictive Covenant, the Restricted Property currently is and will remain in a Natural Condition as defined herein and is intended to be preserved in its natural, scenic, open condition to maintain its ecological, historical, visual and educational values (collectively, "Conservation Values"). The Conservation Values are of importance to the people of the County of Orange and the people of the State of California. 1 288664 1 6/28/2007 9.39 AM Exhibit B F. The ACOE is the federal agency charged with the primary responsibility for regulating activities in waters of the United States, including wetlands, with regulatory authority over discharges of dredged and fill material into such waters pursuant to Section 404 of the Clean Water Act, and is a third party beneficiary of this Restrictive Covenant. COVENANTS,TERMS,CONDITIONS AND RESTRICTIONS 1. NOW THEREFORE, in consideration of the above recitals and the mutual covenants, terms, conditions, and restrictions contained herein, and pursuant to California law. including Civil Code Section 815, et seq., Declarant hereby declares the Restricted Property shall be held, transferred, conveyed, leased, occupied or otherwise disposed of and used subject to the following restrictive covenants(and incorporating the above recitals herein by this reference), which shall run with the land and be binding on Declarant's heirs, successors in interest, administrators, assigns, lessees, or other occupiers and users of the Restricted Property or any portion of it.Purpose. (a) The purpose of this Restrictive Covenant is to ensure the Restricted Property will be retained in perpetuity in a Natural Condition, defined below, and to prevent any use of the Restricted Property that will impair or interfere with the Conservation Values of the Restricted Property (the "Purpose"). Declarant intends that this Restrictive Covenant will confine the use of the Restricted Property to such activities, including without limitation, those involving the preservation and enhancement of native species and their habitat in a manner consistent with the habitat conservation purposes of this Restrictive Covenant. — (b) The term "Natural Condition," as referenced in the preceding paragraph and other portions of this Restrictive Covenant, shall mean the condition of the Restricted Property as it exists at the time this Restrictive Covenant is executed, as well as future enhancements or changes to the Restricted Property that occur directly as a result of the following activities: (1) Compensatory mitigation measures, including implementation, maintenance and monitoring activities, required by the Section 404 Permit, and as described in the "San Juan Capistrano Terminal Reservoir No. 3 Conceptual Wetlands Restoration Plan," prepared by Merkel and Associates dated August 10, 2004 ("Mitigation Plan"), the cover page of which is attached as Exhibit"C" (collectively, "Compensatory Mitigation"); (2) In-perpetuity maintenance ("Long-Term Maintenance"), that occurs on the Restricted Property as described in the Management Plan and Section 13 herein; or (3) Activities described in Section 5 herein. (c) Declarant certifies to ACOE that, to Declarant's actual knowledge, there are no structures or other man-made improvements existing on the Restricted Property. Declarant further certifies to ACOE that, to Declarant's actual knowledge, there are no previously granted easements existing on the Restricted Property that interfere or conflict with the Purpose of this Restrictive Covenant as evidenced by the Title Report attached at Exhibit "D". The current Natural Condition is evidenced in part by the depiction of the Restricted Property attached on — Exhibit "E", showing all relevant and plottable property lines, easements, dedications, improvements, boundaries and major, distinct natural features such as waters of the United 288664 2 6/28/2007 9.39 AM ' States. Declarant has delivered further evidence of the Natural Condition to ACOE consisting of (1) a color aerial photograph of the Restricted Property at an appropriate scale taken as close in time as possible to the date this Restrictive Covenant is executed; (2) an overlay of the Restricted Property boundaries on that aerial photograph; and (3) on-site color photographs showing all natural features of the Restricted Property. (d) If a controversy arises with respect to the Natural Condition of the Restricted Property, Declarant or ACOE shall not be foreclosed from utilizing any and all other relevant documents, surveys, photographs or other evidence or information to assist in the resolution of the controversy. (e) The term "Biological Monitor" shall mean an independent third-party consultant or an employee of the City possessing familiarity with biological resources in the Orange County area and at least a B.A. or B.S. level of education in the field of biology or a related field. Qualifications of the Biological Monitor must be submitted to ACOE for review and approval. 2. ACOE's riehts. To accomplish the Purpose of this Restrictive Covenant, Declarant hereby grants and conveys the following rights to ACOE (but without obligation of the ACOE): (a) A non-exclusive easement on and over the Restricted Property to preserve and protect the Conservation Values of the Restricted Property; and (b) A non-exclusive easement on and over the Restricted Property to enter upon the ' Restricted Property to monitor Declarant's compliance with and to otherwise enforce the terms of this Restrictive Covenant; and (c) A non-exclusive easement on and over the Restricted Property to prevent any activity on or use of the Restricted Property that is inconsistent with the Purpose of this Restrictive Covenant and to require the restoration of such areas or features of the Restricted Property that may be damaged by any act, failure to act, or any use that is inconsistent with the Purpose of this Restrictive Covenant; and (d) Except as otherwise set forth in this Restrictive Covenant, all present and future development rights allocated, implied, reserved or inherent in the Restricted Property; such rights are hereby terminated and extinguished, and may not be used on or transferred to any portion of the Property, nor any other property adjacent or otherwise; and (e) The right to enforce by means, including, without limitation, injunctive relief, the terns and conditions of this Restrictive Covenant. 3. Declarant's Duties. Declarant, its successors and assigns shall:Undertake all reasonable actions to prevent the unlawful entry and trespass by persons whose activities would be inconsistent with the Conservation Values and would violate the permitted uses of the Restricted Property set forth in this Restrictive Covenant; and (b) Post and maintain signage in or adjacent to the boundary areas of the Restricted ' Property as described in Section 5(d); and 288664 3 6/28/2007 9:39 AM (c) Comply with the terms of this Restrictive Covenant and cooperate with ACOE in the protection of the Conservation Values; and (d) Repair and restore damage to the Restrictive Property directly or indirectly caused by Declarant, Declarant's guests, representatives or agents and third parties; provided, however, Declarant, its successors or assigns shall not engage in any repair or restoration work in the Restricted Property without first consulting with ACOE pursuant to Section 13; and (e) Undertake construction, maintenance and monitoring of mitigated areas pursuant to the Mitigation Plan until receipt of final approval of the success of the mitigation from ACOE; and (f) Obtain any applicable governmental permits and approvals for any activity or use permitted by this Restrictive Covenant, and any activity or use shall be undertaken in accordance with all applicable federal, state, local and administrative agency statutes, ordinances, rules, regulations, orders or requirements; (g) Perform in-perpetuity Long-Term Maintenance set forth in Section 13 below; and (h) Perform an annual compliance inspection of the Restricted Property, prepare an inspection report and shall make reports available to ACOE upon request. 4. Prohibited Uses. Any activity on or use of the Restricted Property inconsistent with the Purpose of this Restrictive Covenant and not reserved as set forth in Section 5 hereof is prohibited. Without limiting the generality of the foregoing, the following uses by Declarant, and its respective guests, agents, assigns, employees, representatives, successors and third parties, are expressly prohibited, except as otherwise provided herein or unless specifically provided for in the Section 404 Permit, Mitigation Plan, and any easements and reservations of rights recorded in the chain of title to the Restricted Property at the time of this conveyance (as set forth in Exhibit D hereto): (a) Supplemental watering except for habitat enhancement activities described in Section 5(b); (b) Use of herbicides, pesticides, rodenticides, biocides, fertilizers, or other agricultural chemicals or weed abatement activities, except weed abatement activities necessary to control or remove invasive, exotic plant species; (c) Incompatible fire protection activities, except the fire prevention activities set forth in Section 5(f); (d) Use of off-road vehicles and use of any other motorized vehicles except on existing roadways and as necessary to restore native plant communities consistent with Section 5. (e) Grazing or other agricultural activity of any kind; (f) Recreational activities including, but not limited to, horseback riding, biking, hunting or fishing; 288664 4 6/28/2007 9:39 AM ' (g) Residential, commercial,retail, institutional, or industrial uses; (h) Any legal or de facto division, subdivision or portioning of the Restricted Property; (i) Construction, reconstruction or placement of any building or other improvement, billboard, or signs except signs permitted in Section 3(b) and Section 5(d); 0) Depositing, dumping or accumulating soil, trash, ashes, refuse, waste, bio-solids or any other material; (k) Planting, introduction or dispersal of non-native or exotic plant or animal species; (1) Filling, dumping, excavating, draining, dredging, mining, drilling, removing or exploring for or extraction of minerals, loam, gravel, soil, rock, sand or other material on or below the surface of the Restricted Property; (m) Altering the general topography of the Restricted Property, including but not limited to building of roads, trails, and flood control work; (n) Removing, destroying, or cutting of trees, shrubs or other vegetation, except as necessary for (1) emergency fire protection as required by fire safety officials as set forth in Section 5(f), (2) controlling invasive, exotic plants which threaten the integrity of the habitat, (3) ' preventing or treating disease, (4) completing the Mitigation Plan, or (5) activities described in Section 3, Section 5 and Section 13; (o) Manipulating, impounding or altering any natural watercourse, body of water or water circulation on the Restricted Property, and activities or uses detrimental to water quality, including but not limited to degradation or pollution of any surface or sub-surface waters; and (p) Fuel modification zones (defined as a strip of mowed land or the planting of vegetation possessing low combustibility for purposes of fire suppression). 5. Reserved Rights. Declarant reserves to itself, and to its personal representatives, heirs, successors, and assigns, all rights accruing from its ownership of the Restricted Property, including the right to engage in or to permit or invite others to engage in all uses of the Restricted Property that not prohibited or limited by, and are consistent with, the Purpose of this Restrictive Covenant, including the following uses: (a) Access. Reasonable access through the Restricted Property to adjacent land over existing roads, or to perform obligations or other activities permitted by this Restrictive Covenant or that are required under the Section 404 Permit. In addition, police and other public safety organizations and their personnel may enter the Restricted Property to address any legitimate public health or safety matter. (b) Habitat Enhancement Activities. Enhancement of native plant communities, including the right to plant trees and shrubs of the same type as currently existing on the Restricted Property, so long as such activities do not harm the habitat types identified in the 288664 5 6/28/2007 9.39 AM Section 404 Permit. For purposes of preventing erosion and reestablishing native vegetation, the Declarant shall have the right to revegetate areas that may be damaged by the permitted activities under this Section 5, naturally occurring events or by the acts of persons wrongfully damaging the Natural Condition of the Restricted Property. Prior to any habitat enhancement activities, Declarant shall have its Biological Monitor submit detailed plans to ACOE for review and approval. Habitat enhancement activities shall not be in direct or potential conflict with the preservation of the Natural Condition of the Restricted Property or the Purpose of this Restrictive Covenant and shall be performed in compliance with all applicable laws, regulations, and permitting requirements. (c) Vegetation. Debris, and Exotic Species Removal. Removal or trimming of vegetation downed or damaged due to natural disaster, removal of man-made debris, removal of parasitic vegetation (as it relates to the health of the host plant) and removal of non-native or exotic plant or animal species. Vegetation, debris, and exotic plant species removal shall not be in direct or potential conflict with the preservation of the Natural Condition of the Restricted Property or the Purpose of this Restrictive Covenant and shall be performed in compliance with all applicable laws, regulations, and permitting requirements. (d) Erection and Maintenance of Informative Signage. Erection and maintenance of signage and other notification features saying "Natural Area Open Space," "Protected Natural Area," or similar descriptions that inform persons of the nature and restrictions on the Restricted Property. Prior to erection of such signage, the Declarant shall submit detailed plans showing the location of such signs to ACOE for review and approval. The erection and maintenance of -- informative signage shall not be in direct or potential conflict with the preservation of the Natural Condition of the Restricted Property or the Purpose of this Restrictive Covenant and shall be performed in compliance with all applicable laws, regulations, and permitting requirements. (e) No Interference with Development of Adjoining PropeM. Notwithstanding anything set forth herein to the contrary, nothing in this Restrictive Covenant is intended nor shall be applied to in any way limit Declarant or any of Declarant's successors and assigns from (1)constructing, placing, installing, and/or erecting any improvements upon the portions of the Project not constituting the Restricted Property, (2) installing and/or maintaining the subsurface infrastructure improvements, utility lines, landscaping (including irrigation and runoff), landscape mitigation, and/or similar non-structural improvements within the Restricted Property, and/or(3) developing adjoining property for any purposes, except as limited by any local, state or federal permit requirements for such development and provided that for all of the above clauses (1), (2), and (3) neither such activity nor any effect resulting from such activity amounts to a use of the Restricted Property, or has an impact upon the Restricted Property, that is prohibited by Section 4 above. (f) Fire Protection. The right, in an emergency situation only, to maintain firebreaks (defined as a strip of plowed or cleared land made to check the spread of a fire), trim or remove brush, otherwise perform preventative measures required by the fire department to protect structures and other improvements from encroaching fire. All other brush management activities shall be limited to areas outside the Restricted Property. 288664 6 6/28/2007 9:39 AM ' 6. Enforcement. (a) Right to Enforce. Declarant, its successors and assigns, grant to ACOE, U.S. Department of Justice, and the State Attorney General a discretionary right to enforce these restrictive covenants in a judicial or administrative action against any person(s) or other entity (ies) violating or attempting to violate these restrictive covenants; provided, however, that no violation of these restrictive covenants shall result in a forfeiture or reversion of title. The U.S. Department of Justice and the State Attorney General shall have the same rights, remedies and limitations as ACOE under this Section 6. The rights under this Section are in addition to, and do not limit rights conferred in Section 2 above, the rights of enforcement against Declarant, its successor or assigns under the Section 404 Permit, or any rights of the various documents created thereunder or referred to therein. (b) Notice. (1) If ACOE determines Declarant is in violation of the terms of this Restrictive Covenant or that a violation is threatened, ACOE may demand the cure of such violation. In such a case, ACOE shall issue a written notice to Declarant (hereinafter "notice of violation") informing Declarant of the violation and demanding cure of such violation. (2) Declarant shall cure the noticed violation within fifteen (15) days of receipt of said written notice from ACOE. If said cure reasonably requires more than fifteen (15) days, Declarant shall,within the fifteen (15) day period submit to ACOE for review and approval ' a plan and time schedule to diligently complete a cure. Declarant shall complete such cure in accordance with the approved plan. If Declarant disputes the notice of violation, it shall issue a written notice of such dispute (hereinafter "notice of dispute") to the ACOE within fifteen (15) days of receipt of written notice of violation. (3) If Declarant fails to cure the noticed violation(s) within the time period(s) described in Section 6(b)(2) above, or Section 6(c) below, ACOE may bring an action at law or in equity in a court of competent jurisdiction to enforce compliance by Declarant with the terms of this Restrictive Covenant. In such action, the ACOE may (i) recover any damages to which they may be entitled for violation by Declarant of the terms of this Restrictive Covenant, (ii) enjoin the violation, ex parte if necessary, by temporary or permanent injunction without the necessity of proving either actual damages or the inadequacy of otherwise available legal remedies, or(iii) pursue other equitable relief, including, but not limited to, the restoration of the Restricted Property to the condition in which it existed prior to any such violation or injury. ACOE may apply any damages recovered to the cost of undertaking any corrective action on the Restricted Property. (4) If Declarant provides ACOE with a notice of dispute, as provided herein, ACOE shall meet and confer with Declarant at a mutually agreeable place and time, not to exceed thirty (30) days from the date that ACOE receives the notice of dispute. ACOE shall consider all relevant information concerning the disputed violation provided by Declarant and shall determine whether a violation has in fact occurred and, if so, whether the notice of violation ' and demand for cure issued by ACOE is appropriate in light of the violation. 288664 7 6/282007 9:39 AM (5) If, after reviewing Declarant's notice of dispute, conferring with Declarant, and considering all relevant information related to the violation, ACOE determines that a violation has occurred; ACOE shall give Declarant notice of such determination in writing. Upon receipt of such determination, Declarant shall have fifteen (15) days to cure the violation. If said cure reasonably requires more than fifteen (15) days, Declarant shall, within the fifteen (15) day period submit to ACOE for review and approval a plan and time schedule to diligently complete a cure. Declarant shall complete such cure in accordance with the approved plan. (c) Immediate Action. If ACOS, in its reasonable discretion, determines that circumstances require immediate action to prevent or mitigate significant damage to the Conservation Values of the Restricted Property, ACOE may immediately pursue all available remedies, including injunctive relief, available pursuant to both this Restrictive Covenant and state and federal law after giving Declarant at least twenty four (24) hours' written notice before pursuing such remedies. So long as such twenty four (24) hours' notice is given, ACOE may immediately pursue all available remedies without waiting for the expiration of the time periods provided for cure or notice of dispute as described in Section 6(b)(2). The written notice pursuant to this paragraph may be transmitted to Declarant by facsimile. The rights of ACOE under this paragraph apply equally to actual or threatened violations of the terms of this Restrictive Covenant. Declarant agrees that the remedies at law for ACOE for any violation of the terms of this Restrictive Covenant are inadequate and that ACOE shall be entitled to the injunctive relief described in this section, both prohibitive and mandatory, in addition to such other relief to which ACOE may be entitled, including specific performance of the terms of this Restrictive Covenant, without the necessity of proving either actual damages or the inadequacy — of otherwise available legal remedies. The remedies described in this Section 6(c) shall be cumulative and shall be in addition to all remedies now or hereafter existing at law or in equity. (d) Costs of Enforcement. Any costs incurred by ACOE in enforcing the terms of this Restrictive Covenant against Declarant including, but not limited to, costs of suit and attorneys' fees, and any costs of restoration necessitated by Declarant's violation or negligence under the terms of this Restrictive Covenant shall be borne by Declarant, subject to California Civil Code section 815. (e) Enforcement Discretion. Enforcement of the terms of this Restrictive Covenant shall be at the discretion of ACOE. Any forbearance by ACOE to exercise rights under this Restrictive Covenant in the event of any breach of any term of this Restrictive Covenant by Declarant shall not be deemed or construed to be a waiver by ACOE of such term or of any subsequent breach of the same or any other term of this Restrictive Covenant or of any of the rights of ACOE under this Restrictive Covenant. No delay or omission by ACOE in the exercise of any right or remedy upon any breach by Declarant shall impair such right or remedy or be construed as a waiver. (f) Acts Beyond Declarant's Control. Nothing contained in this Restrictive Covenant shall be construed to entitle ACOE to bring any action against Declarant for any injury to or change in the Restricted Property resulting from: (1) Any natural cause beyond Declarant's control, including without limitation, fire not caused by Declarant, flood, storm, and earth movement; or 288664 8 6/28/2007 9:39 AM ' (2) Any prudent action taken by Declarant under emergency conditions to prevent, abate, or mitigate significant injury to persons and/or the Restricted Property resulting from such causes. Notwithstanding the foregoing, even actions undertaken during emergency conditions must receive prior authorization from the Department of Army (through expedited procedures, if appropriate) if the action involves a discharge of dredged or fill material into jurisdictional waters of the United States and before any ground-disturbing activities occur on the Restricted Property. 7. Access. This Restrictive Covenant does not convey a general right of access to the public or a general right of access to the Restricted Property. In accordance with Section 3(b), Declarant shall install signage at all likely points of entry informing persons of the nature and restrictions on the Restricted Property. This Restrictive Covenant will allow for access to the Restricted Property by ACOE and third-party easement holders of record at the time of this conveyance at locations designated in easements and reservations of rights recorded in the chain of title to the Restricted Property at the time of this conveyance. 8. Costs and Liabilities. Declarant, or its successor or assign retains all responsibilities and shall bear all costs and liabilities of any kind related to the ownership, operation, upkeep, and maintenance of the Restricted Property. Declarant agrees ACOE shall not have any duty or responsibility for the operation, upkeep, or maintenance of the Restricted Property, the monitoring of hazardous conditions thereon, or the protection of Declarant, the public or any third parties from risks relating to conditions on the Restricted Property. Declarant, its successor or assign remains solely responsible for obtaining any applicable governmental permits and approvals for any activity or use permitted by this Restrictive Covenant, and any activity or use shall be undertaken in accordance with all applicable federal, state, local and administrative agency statutes, ordinances, rules, regulations, orders and requirements. 9. Taxes. Declarant, its successor or assign shall pay before delinquency all taxes, assessments, fees, and charges of whatever description levied on or assessed against the Restricted Property by competent authority, including any taxes imposed upon, or incurred as a result of, this Restrictive Covenant, and agrees to furnish ACOE with satisfactory evidence of payment upon request. 10. Condemnation. The Purpose of the Restricted Property is presumed to be the best and most necessary public use as defined at California Civil Procedure Code Section 1240.680 notwithstanding California Civil Procedure Code Sections 1240.690 and 1240.700. 11. Assiiznment and Subsequent Transfers. (a) Declarant agrees to incorporate the terms of this Restrictive Covenant in any deed or other legal instrument by which Declarant divests itself of any interest in all or a portion of the Restricted Property. Declarant, its successor or assign agrees to (i) incorporate by reference to ' the title of and the recording information for this Restrictive Covenant in any deed or other legal instrument by which each divests itself of any interest in all or a portion of the Restricted 288664 9 6/28/2007 9:39 AM Property, including, without limitation, a leasehold interest and (ii) give actual notice to any such transferee or lessee of the existence of this Restrictive Covenant. Declarant, its successor or assign agrees to give written notice to ACOE of the intent to transfer any interest at least thirty (30) days prior to the date of such transfer. Any subsequent transferee shall be deemed to have assumed the obligations of this Restrictive Covenant and to have accepted the restrictions contained herein. The failure of Declarant, its successor or assign to perform any act provided in this Section shall not impair the validity of this Restrictive Covenant or limit its enforceability in any way. (b) From and after the date of any transfer of all or any portion of the Restricted Property by Declarant and each transfer thereafter, (i) the transferee shall be deemed to have assumed all of the obligations of Declarant as to the portion transferred, as set forth in this Restrictive Covenant, (ii) the transferee shall be deemed to have accepted the restrictions contained herein as to the portion transferred, (iii) the transferor, as applicable, shall have no further obligations hereunder except for the obligations set forth above in this paragraph and pursuant to Section 22, and (iv) all references to Declarant in this Restrictive Covenant shall thereafter be deemed to refer to such transferee. 12. Notices. Any notice, demand, request, consent, approval, or communication that either party desires or is required to give to the other shall be in writing and be served personally or sent by first class mail, postage prepaid, addressed as follows: To Declarant: Public Works Director — City of San Juan Capistrano 32400 Paseo Adelanto San Juan Capistrano, CA 92675 To ACOE: District Counsel U.S. Army Corps of Engineers 915 Wilshire Blvd,Room 1535 Los Angeles, CA 90017-3401 or to such other address as either party shall designate by written notice to the other. Notice shall be deemed effective upon delivery in the case of personal delivery or, in the case of delivery by first class mail, five (5) days after deposit into the United States mail. 13. Long-Term Maintenance. In addition to the other terms contained herein, Declarant, its successor or assign shall be responsible for the maintenance/repair of the Restricted Property in perpeutity. Such long-term maintenance shall consist of the following activities: (a) annual removal, by hand, of trash or man-made debris, (b) annual maintenance of signage and other notification features or similar descriptions that inform persons of the nature and restrictions on the Restricted Property pursuant to Section 3(b), and (c) annual restoration of the Restricted Property damaged by any activities prohibited by Section 4 herein. Declarant, its successors and assigns shall prepare a monitoring and maintenance report documenting activities performed under subsections (a) and (b) above, and shall make reports available to ACOE upon request. When activities are performed pursuant to subsection (c) above, Declarant shall have its Biological Monitor to prepare a Restoration Plan and to oversee/monitor such restoration 288664 10 6/28/2007 9:39 AM activities. Declarant shall have its Biological Monitor submit a draft Restoration Plan to ACOE for review and approval prior to its implementation. Upon completion of restoration as specified in the ACOE-approved Restoration Plan, Declarant shall have its Biological Monitor prepare a detailed monitoring report, and Declarant shall make the report available to ACOE within thirty (30) days of completion of restoration activities. Declarant, its successors or assigns and the Biological Monitor shall sign the monitoring report, and the report shall document the Biological Monitor's name and affiliation, dates Biological Monitor was present on-site, activities observed and their location, Biological Monitor's observations regarding the adequacy of restoration performance by the Declarant, its successors or assigns, or its contractor in accordance with the ACOE-approved Restoration Plan, corrections recommended and implemented. 14. Amendment. Declarant may amend this Restrictive Covenant only after written concurrence by ACOE. Any such amendment shall be consistent with the Purpose of this Restrictive Covenant and shall not affect its perpetual duration. Declarant shall record any amendments to this Restrictive Covenant approved by ACOE in the official records of Orange County, California, and shall provide a copy of the recorded document to ACOE. 15. Recordation. Declarant, its successor or assign shall promptly record this instrument in the official records of Orange County, California, and provide a copy of the recorded document to ACOE. 16. Estoppel Certificate. Upon request, ACOE shall within fifteen (15) days execute and ' deliver to Declarant, its successor or assign any document, including an estoppel certificate, which certifies compliance with any obligation of Declarant, its successor or assign contained in this Restrictive Covenant or otherwise evidences the status of this Restrictive Covenant as may be requested by Declarant, its successor or assign. 17. Controlling Law. The laws of the United States and the State of California shall govern the interpretation and performance of this Restrictive Covenant. 18. Liberal Construction. Any general rule of construction to the contrary notwithstanding, this Restrictive Covenant shall be liberally construed in favor of the deed to effect the purpose of this Restrictive Covenant and the policy and purpose California Civil Code Section 815, et seq. If any provision in this instrument is found to be ambiguous, an interpretation consistent with the purposes of this Restrictive Covenant that would render the provision valid shall be favored over any interpretation that would render it invalid. 19. Severability. If a court of competent jurisdiction voids or invalidates on its face any provision of this Restrictive Covenant, such action shall not affect the remainder of this Restrictive Covenant. If a court of competent jurisdiction voids or invalidates the application of any provision of this Restrictive Covenant to a person or circumstance, such action shall not affect the application of the provision to other persons or circumstances. 20. No Forfeiture. Nothing contained herein will result in a forfeiture or reversion of Declarant's title in any respect. ' 21. Successors and Assigns. The covenants, terms, conditions, and restrictions of this Restrictive Covenant shall be binding upon, and inure to the benefit of, the parties hereto and 288664 11 6/28/2007 939 AM their respective personal representatives, heirs, successors, and assigns and shall continue as a servitude running in perpetuity with the Restricted Property. 22. Termination of Rights and Obligations. A party's rights and obligations under this Restrictive Covenant terminate upon transfer of the party's interest in the Restrictive Covenant or Restricted Property, except that liability for acts or omissions occurring prior to transfer shall survive transfer. 23. Captions. The captions in this instrument have been inserted solely for convenience of reference and are not a part of this instrument and shall have no effect upon construction or interpretation. 24. No Hazardous Materials Liability. (a) Declarant represents and warrants that it has no knowledge of any release or threatened release of Hazardous Materials (defined below) in, on, under, about or affecting the Restricted Property. (b) Despite any contrary provision of this Restrictive Covenant, the parties do not intend this Restrictive Covenant to be, and this Restrictive Covenant shall not be, construed such that it creates in or gives ACOE any of the following: (1) The obligations or liabilities of an "owner" or "operator," as those terns _ are defined and used in Environmental Laws (defined below), including, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (42 U.S.C. Section 9601 et seq.; hereinafter, "CERCLA"); or (2) The obligations or liabilities of a person described in 42 U.S.C. Section 9607(a)(3) or(4); or (3) The obligations of a responsible person under any applicable Environmental Laws; or (4) The right to investigate and remediate any Hazardous Materials associated with the Restricted Property; or (5) Any control over Declarant's ability to investigate, remove, remediate or otherwise clean up any Hazardous Materials associated with the Restricted Property. (c) The term "Hazardous Materials" includes, without limitation, (a) material that is flammable, explosive or radioactive; (b)petroleum products, including by-products and fractions thereof; and (c) hazardous materials, hazardous wastes, hazardous or toxic substances, or related materials defined in CERCLA,the Resource Conservation and Recovery Act(42 U.S.C. Section 6901 et seq.); the Hazardous Materials Transportation Act (49 U.S.C. Section 5101 et seq.); the Hazardous Waste Control Law (California Health & Safety Code Section 25100 et seq.); the Hazardous Substance Account Act (California Health & Safety Code Section 25300 et seq.), and _ in the regulations adopted and publications promulgated pursuant to them, or any other 288664 12 6/28/2007 9'.39 AM applicable federal, state or local laws, ordinances, rules, regulations or orders now in effect or enacted after the date of this Restrictive Covenant. (d) The term "Environmental Laws" includes, without limitation, any federal, state, local or administrative agency statute, ordinance, rule, regulation, order or requirement relating to pollution, protection of human health or safety, the environment or Hazardous Materials. Declarant represents, warrants and covenants to ACOE that activities upon and use of the Restricted Property by Declarant, its agents, employees, invitees and contractors will comply with all Environmental Laws. 25. Additional Easements. Declarant shall not grant any additional easements, rights of way or other interests in the surface or subsurface of the Restricted Property (other than a security interest that is subordinate to this Restrictive Covenant), or grant or otherwise abandon or relinquish any water rights relating to the Restricted Property, without first obtaining the written consent of ACOE. ACOE may withhold such consent if it determines that the proposed interest or transfer is inconsistent with the Purpose of this Restrictive Covenant or will impair or interfere with the Conservation Values of the Restricted Property. This Section shall not prohibit transfer of a fee or leasehold interest in the Restricted Property that is subject to this Restrictive Covenant and complies with Section 11. Declarant, its successors and assigns shall record any additional easements or other interests in the Restricted Property approved by the ACOE in the official records of Orange County, California and provide a copy of the recorded document to the ACOS. ' 26. ACOE Benefited Party. Except for Section 21, the terms of this Restrictive Covenant are for the benefit of the ACOE only and are not for the benefit of any other party. 27. Extinguishment. If circumstances arise in the future that render the Purpose of the Restrictive Covenant impossible to accomplish, the Restrictive Covenant can only be terminated or extinguished, in whole or in part, by judicial proceedings in a court of competent jurisdiction. 28. Warranty. Declarant represents and warrants that there are no outstanding mortgages, liens, encumbrances or other interests in the Restricted Property (including, without limitation, mineral interests) which have not been expressly subordinated to this Restrictive Covenant, and that the Restricted Property is not subject to any other Conservation Easement. IN WITNESS WHEREOF Declarant has executed this Restrictive Covenant the day and year first above written. ' City of San Juan Capistrano 288664 13 6/28/2007 9:39 AM By: Sam Allevato, Mayor Attest: By: Margaret R. Monahan City Clerk Approved as to Form: By: John R. Shaw City Attorney 288664 14 6/28/2007 9:39 AM ' EXHIBIT A Legal Description 288664 15 6/28/2007 939 AM EXHIBIT"A" LEGAL DESCRIPTION CITY OF SAN JUAN CAPISTRANO OPEN SPACE EASEMENT THOSE CERTAIN PARCELS OF LAND SITUATED IN THE CITY OF SAN JUAN CAPISTRANO, COUNTY OF ORANGE,STATE OF CALIFORNIA,BEING A PORTION OF LOT E OF TRACT NO. 9784 AS SHOWN ON A MAP FILED IN BOOK 482 PAGES 23 THROUGH 30 OF MISCELLANEOUS MAPS IN THE OFFICE OF THE ORANGE COUNTY RECORDER MORE PARTICULARLY DESCRIBED AS FOLLOWS: PARCELI: COMMENCING AT THE NORTHEASTERLY TERMINUS OF THAT CERTAIN COURSE OF THE CENTERLINE OF CAMINO LAS RAMBLAS HAVING A BEARING AND DISTANCE OF"NORTH 80°15'42"EAST 509.00 FEET"AS SHOWN ON SAID TRACT NO. 9784;THENCE NORTH 9'44'18"WEST 221.83 FEET;THENCE SOUTH 80°15'42"WEST 73.82 FEET;THENCE NORTH 12°31'24"WEST 14.42 FEET TO THE TRUE POINT OF BEGINNING;THENCE NORTH 86017'27"WEST 34.73 FEET;THENCE SOUTH 79005'39" WEST 18.99 FEET;THENCE SOUTH 73045'06"WEST 21.7I FEET;THENCE SOUTH 69027'35"WEST 35.81 FEET;THENCE SOUTH 55°25'25"WEST 47.49 FEET;THENCE -- SOUTH 49°21'31"WEST 25.17 FEET;THENCE SOUTH 22°36'32"WEST 25,99 FEET; THENCE SOUTH 7859'50"EAST 19.83 FEET; THENCE NORTH 79°50'42"EAST 23.45 FEET;THENCE NORTH 77°31'20"EAST 33.49 FEET;THENCE NORTH 77144'25"EAST 36.89 FEET;THENCE NORTH 73°51'02"EAST 27.92 FEET;THENCE NORTH 29°14'42" EAST 28.18 FEET;THENCE NORTH 25°56'44"EAST 36.45 FEET;THENCE NORTH 49054'29"EAST 10.51 FEET TO THE TRUE POINT OF BEGINNING. CONTAINING: 0.197 ACRES MORE OR LESS PARCEL 2: COMMENCING AT THE NORTHEASTERLY TERMINUS OF THAT CERTAIN COURSE OF THE CENTERLINE CAMINO LAS RAMBLAS HAVING A BEARING AND DISTANCE OF"NORTH 80015'42"EAST 509.00 FEET"AS SHOWN ON SAID TRACT NO. 9784; ! THENCE NORTH 9044'18"WEST 221.83 FEET;THENCE SOUTH 80015'42"WEST 73.82 FEET TO THE TRUE POINT OF BEGINNING;THENCE SOUTH 8801'05"WEST 10.73 FEET;THENCE SOUTH 12°48'54"WEST 20.23 FEET;THENCE SOUTH 22°21'37"WEST 21.12 FEET;THENCE SOUTH 34°17'46"WEST 15.77 FEET;THENCE SOUTH 59°40'38" WEST 19.61 FEET;THENCE SOUTH 83°03'55"WEST 17.78 FEET;THENCE SOUTH 81011'35"WEST 31.57 FEET;THENCE SOUTH 81-09'11" WEST 36.04 FEET;THENCE SOUTH 84001'46"WEST 14.25 FEET;THENCE SOUTH 55004'24"EAST 12.24 FEET; THENCE NORTH 82059'48"EAST 39.92 FEET,THENCE NORTH 82025'42"EAST 34.99 - FEET;THENCE NORTH 71055'52"EAST 16.00 FEET;THENCE NORTH 66021'02"EAST 21.98 FEET;THENCE NORTH 35'00'18"EAST 18.68 FEET;THENCE NORTH 19053'18" ' EAST 27.53 FEET;THENCE NORTH 22029'43"EAST 20.70 FEET TO THE TRUE POINT OF BEGINNING. CONTAINING : 0.033 ACRES MORE OR LESS PARCEL3: COMMENCING AT THE NORTHEASTERLY TERMINUS OF THAT CERTAIN COURSE OF THE CENTERLINE CAMINO LAS RAMBLAS HAVING A BEARING AND DISTANCE OF"NORTH 80015'42"EAST 509.00 FEET'AS SHOWN ON SAID TRACT NO.9784; THENCE NORTH 904418"WEST 231.47 FEET;THENCE NORTH 80'15'42"EAST 75.70 FEET TO THE TRUE POINT OF BEGINNING;THENCE NORTH 87°43'13"EAST 39.58 FEET;THENCE NORTH 84°08'50"EAST 38.62 FEET;THENCE NORTH 82°28'42"EAST 67.70 FEET;THENCE NORTH 84°50'19"EAST 38.89 FEET;THENCE NORTH 85°01'27" EAST 52.80 FEET;THENCE SOUTH 9°50'47"WEST 8.91 FEET;THENCE SOUTH 81012'05"WEST 83.78 FEET;THENCE SOUTH 32-0619"WEST 42:09 FEET;THENCE SOUTH 77042'09"WEST 43.93 FEET;THENCE SOUTH 80°41'58" WEST 38.06 FEET; THENCE SOUTH 29048'37"EAST 53.82 FEET;THENCE SOUTH 60°39'57"WEST 19.14 FEET;THENCE NORTH 29-35'16"WEST 23.71 FEET;THENCE NORTH 35-08'12"WEST 33.11 FEET;THENCE NORTH 17°47'01"WEST 3025 FEET TO THE TRUE POINT OF BEGINNING. CONTAINING: 0.110 ACRES MORE OR LESS ' EXHIBIT"B"ATTACHED HERETO AND BY THIS REFERENCE MADE A PART HEREOF. SUBJECT TO:COVENANTS,CONDITIONS,RESTRICTIONS,RIGHT OF WAY AND EASEMENTS OF RECORD. PREPARED UNDER THE SUPERVIS NOF: S. 8p� `. 2 c GRE(30*S.BORCHARD,LS 7705 MY RE STRATION EXPIRES: 12/31/08L S N0.7705 CCP. 12-31-0f y N 426't9.E y � SCALE.. 1" = 220' 7246.02 5249 2 25"E 461.47 SHEET 3 t N� \ SSS NB33027' S-67N 224 .59,£ N7g2 SHEET 2tt tt pApCEL 3 tt $�4 \\�� µ'41 ' LOT t E 1 00't L3 / 6azsrO3£ PARCfLtt1'"� t t 1 ,5k"'53 N0647' ria cr No, 9734t Lam' tt ` R1y �y6 188.60.47 N1.M, 482/ 23 - 30 � 2 t t 657'26 a=1628'23" pARCE� 2 R9t2 Ft N837555"{y R=1158.00' t" 509.00' f-�yg12" Y�J 625.70' L=332.94' N80'15.4 1E ' LAScv CAM/NO1628'23" LINE TABLE R-1200.00' LIN£ BEARING DISTANCE L=345.01' L3 N0654'48-E 36.20' L4 N7549'13"E 107.60' EXHIBIT " " DOACHARD SURVEYMG B F M N P P I N a. INC C SNZTCH TO ACCOMPANY 815 CAU£ PUENTE A LEGAL DESORPTION FOR SAN CLEMENTE, CA 92872 OPEN SPACE EASEMENT PHONE; (94e)43e-4682 PARCELS 1,2 & 3 SHEET 1 OF 4 SHEETS CONTAINING' 0.340 AC. t MARCH 30, 2007 MBF07003 LOT c N8677'27"W �� L6 L5 34.73' N55 2525E PARCEL 1 47.49' L14 N1231'24"W 24.42' N8075 4 E SCALE- 1" = 50' z 99F PARCEL 1 N) N29'1 2'420 1 �ry PARCEL B2 B o� g �Y 1 1 A 23 L22 L21 2 X19 0Z) N55 74 24"W 12.24 2 A� - N82 59 48 E 39.92' PARCEL 2 M 0.033 AC.-+ w TRI CT 1v0. 978 N W W cn4a2 23 30 i i N Ni plaa G �'N8075'42 E — 509,00' x3175'72" R=1200.00' CAMINO LAS RAMBLAS L-554.57' NOTE: SEE SHEET 4 FOR LINE TABLE " EXHIBI T " M- BeORCHARO SURVEYING 8 M A P P I N 6,I N C SKETCH TO ACCOMPANY 515 CALLS PUENTE A LEGAL DESCRIPTION FOR SAN CLEMENTE, CA 92672 OPEN SPACE EASEMENT PHONE: (949)439^4662 PARCELS 1,2 & 3 SHEET 2 OF 4 SHEETS CONTAINING: 0.340 AC, t MARCH 30, 2007 MBF07003 i i. ' LOT E SCALE. 1" = 50' N87'43'13"E N8417 x 8500E 9.58' 38.62N84'50'19"E N86;b127 E T T T 38.89 52.60' N8075 42 E 75.70 N 7 N17.4 '01"W PARCEL i " 67 ° 30.25' 0.110 AC.f N N8172 05£ 83.78 �. c9 W Imo' Afmw'120W �y�'r�s8,. 9.T'�`'Ogry g?9 'j9+ 4 33.11' ,$fig?4B3j F F F 0950 9• N29 35'16"W L i 23.71' 060'3919 4 TRA CT NO, 9784 1 6-1200,00 � tV RAMBLAS 01.a-- k 4-3175.1," G� CAMINO LAS A N a EXHIBIT "B» ���eua�� •M A V P I N 6 , I N G SKETCH TO ACCOMPANY 615 CALLE PUENTE - A LEGAL DESORPTION FOR SAN CLEMENTE. CA 62872 OPEN SPACE EASEMENT PHONE. (949"-4682 PARCELS 1,2 & 3 SHEET 3 OF 4 SHEETS CONTAINING: 0.340 AC. t MARCH 30, 2007 MBF07003 {S 4 LINE TABLE LINE I BEARING DISTANCE L5 N790539 18.99' L6 N7345'06"E 21.71' L7 N692735 E 35.81' , L8 N492131 E 2517' .� L9 147950'42"E 23.45' LID N773120E 3349' 01N7714425"E 156,69, L12 N73'51'02"E 27.92' L13 N255 '44"E 36.45' L14 N495429E 10.51' L15 N880i'05E 10.7 ' L16 N12-48-54-E 0.23' L17 N2221'37"E 21.12' 08 1 N341746 E 15.77' L19 N,59'40'38'E 19.61' L20 N8303'55" 17. 8' L21 N8171 35 E 31.57' L22 N81,09,11,E 36.04' L23 N8401'46 E 14.25' L24 N82 542 E 34.99' L25 N715552E 16.00' L26 N66*21'02'E 21-98' L27 N35 '18" 18.68' L28 N19'53'18'E 2753' L29 142229'43"E 20.70' -i i EXHIBI T "B" BORCHARD dMAPPINO, INC SKETCH TO AOOOMPANY 815 CALLE PUENTE A LEGAL DESCRIPTION FOR SAN CI.EMENTE, CA 92872 . OPEN SPACE EASEMENT Pte` (949)439-4182 PARCELS 1,2 & 3 SHEET 4 OF 4 SHEETS CONTAINING: 0.340 AC. t MARCH 30, 2007 MBF07003 i I ' EXHIBIT C Mitigation Plan 1 288664 17 6/28/2007 939 AM SAN JUAN CAPISTRANO TERMINAL RESOVOIR NO. 3 CONCEPTUAL WETLAND RESTORATION PLAN REVISED i' Prepared for: y Mr.Wain Cooper Camp Dresser&McKee 1925 Palomar Oates Way Suite 300 Carlsbad,CA 92008 i — a Prepared by: I Merkel&Associates,Inc. 5434 Ruffin Road San Diego,California 92123 Phone:(858)560-5465 Far.•(858)560-7779 June 28,2004 Revised August 1100,2004 Melaena A.Hooker Division Manager t .. . ... 5 en R Rink.' Senior Biologist EXHIBIT D ' Title Report ' 288664 18 6/28/2007 9:39 AM Fidelity National Title Company PRELIMIlVARY REPORT In response to the application for a policy of title insurance referenced herein, Fidelity National Title Company hereby reports that it is prepared to issue,or cause to be issued,as ofthe date hereof,a policy or policies oftitle insurance describing the land and the estate or interest therein hereinafter setforth,insuring against loss which may be sustained by reason ofany defect,lien or encumbrance not shown or referred to as j an exception herein or not excluded from coverage pursuant to the printed Schedules, Conditions and Stipulations or Conditions ofsaid policy forms. i The printed Exceptions and Exclusions from the coverage and Limitations on Covered Risks ofsaid policyor policies are serforth in Attachment One. The policy to be issued may contain an arbitration clause. Ken the Amount of Insurance is less than that set forth in the arbitration clause, all arbitrable matters shall be arbitrated at the option of either the Company or the Insured as the exclusive remedy of the parties. Limitations on Covered Risks applicable to the CLTA and ALTA homeowner's Policies ofT'ftle Insurance which establish a Deductible Amount and aMaximum Dollar Limit ofLiability for certain coverages are also set forth in Attachment One. Copies of the policy forms should be read. They are available from the office which issued this report. This report(and any supplements or amendments hereto)is issued solely for the purpose offacilitating the issuance of a policy of title insurance and no liability is assumed hereby. If it is desired that liability be assumed prior to the issuance of a policy of title insurance, a Binder or Commitment should be requested. the policy(s)of title insurance to be issued hereunder will be policy(s)of FidelityNational Title Insurance Company, a California corporation. Please read the exceptions shown or referred to herein and the exceptions and exclusions set forth in Attachment One of this report carefully. The exceptions and exclusions are meant to provideyou with notice of matters which are not covered under the terms of the title insurance policy and should he carefully considered It is important to note that this preliminary report is nota written representation as to the condition oftitle and may not list all liens, defects and encumbrances affecting title to the land a t Fidelity Nationall ritle Company ^ SEAL rr �•'"• Countersigned CLTA Predminazy Report Fonn-Modified(11117106) �I �is/t Us 017 Mr Weftft' MM MUCm ' = Fidelity National Title Company 1300 Dove Street,Suite 310•Newport Beach,CA 92660 949 622.5000•FAX 949 477.3640 PRELIMINARY REPORT Title Officer: John Glance Title No.: 07-259904244-JG Locate No.: CAFNT0925-0925-0199-0259904244 Escrow No.: Prelim Only TO: Borchard Surveying &Mapping, Inc. 815 Calle Puente San Clemente 92672 ATTN: Greg Borchard YOUR REFERENCE: Prelim Only SHORT TERM RATE: PROPERTY ADDRESS: San Juan Capistrano, California EFFECTIVE DATE: April 5, 2007,07:30 A.M. The form of policy or policies of tide insurance contemplated by this report is: 1. THE ESTATE OR INTEREST IN THE LAND HEREINAFTER DESCRIBED OR REFERRED TO COVERED BY THIS REPORT IS: A Fee 2. TITLE TO SAID ESTATE OR INTEREST AT THE DATE HEREOF IS VESTED IN: The City of San Juan Capistrano, by dedication on the map of Tract 9784. 3. THE LAND REFERRED TO IN THIS REPORT IS DESCRIBED AS FOLLOWS: SEE EXHIBIT"A"ATTACHED HERETO AND MADE A PART HEREOF EH\EH 04/12/2007 1 I 0.Tq Mdininary Report Form-Modified(11/17/06) Title Na 07-259904244-IG Locate No. CAFNT0925-0925-0199-0259904244 LEGAL DESCRIPTION EXHIBIT^A" LOT E OF TRACT NO. 9794 AS SHOWN OIN MAP RECORDED IN BOOK 482, PAGES 23 TO 30, BOTH INCLUSIVE,OF MISCELLANEOUS MAPS, RECORDS OF ORANGE COUNTY,CALIFORNIA. EXCEPTING THEREFROM AN UNDIVIDED ONE-HALF INTEREST IN AND TO ALL OIL,GAS AND OTHER HYDROCARBON SUBSTANCES IN, UPON AND UNDER SAID LAND TOGETHER WITH ONE-HALF OF ALL RENTALS,ROYALTIES,BONUS PAYMENTS AND OTHER THINGS,OF VALUE NOW OR HEREAFTER ACCRUING FROM SAID UNDIVIDED ONE-HALF INTEREST IN AND TO SAID SUBSTANCES AS RESEVED BY HOWARD L. KRUM AND FAY WILSON KRUM, HUSBAND AND WIFE, BE DEED RECORDED AND RE-RECORDED JULY 20, 1956 IN BOOK 3584, PAGE 339 OF OFFICIAL RECORDS. SAID INTEREST IS NOW VESTED IN CROCKER NATIONAL BANK,A NATIONAL BANKING ASSOCIATION,AS SUCCESSOR TRUSTEE TO THE ESTATE OF HOWARD L. KRUM, DECEASED, BY INSTRUMENTS RECORDED OCTOBER 9, 1973 IN BOOK 10933 PAGE 663 OF OFFICIAL RECORDS AND MAY 14, 1979 IN BOOK 13143 PAGE 1453 OF OFFICIAL REORDS. ALSO EXCEPTING ALL WATER RIGHTS IN OR APPURTENANTTO SAID LAND AS DEDICATED TOTHE ORANGE COUNTY WATERWORKS DISTRICT NO. 4, BY INDORSEMENT ON THE MAP OF SAID TRACT. APN: 675-261-05 i 2 CLTA Pelt hb Repan fmn MuliflM(11/17(06) i Tide No. 07-259904244JG Locate No, CAFNT0925-0925.0199-0259904244 AT THE DATE HEREOF,ITEMS TO BE CONSIDERED AND EXCEPTIONS TO COVERAGE IN ADDITION TO THE PRINTED EXCEPTIONS AND EXCLUSIONS IN SAID POLICY FORM WOULD BE AS FOLLOWS: 1. Property taxes,which are a lien not yet due and payable,including any assessments collected with taxes to be levied for the fiscal year 2007-2008. 2. GENERAL AND SPECIAL C1TH AND/OR COUNTY TAXES, BONDS OR ASSESSMENTS, WHICH MAY BECOME DUE ON SAID LAND,IF AND/OR WHEN TALE TO SAID LAND IS NO LONGER ASSESSED TO A GOVERNMENTAL OR QUASI-GOVERNMENTAL AGENCY. 3, The lien of supplemental taxes, if any, assessed pursuant to the provisions of Chapter 3.5 (Commencing with Section 75) of the Revenue and Taxation code of the State of California. 4. Water rights,claims or title to water, whether or not disclosed by the public records. S. A perpetual easement and right of way for water pipe lines and appurtenances thereto,as granted to Orange County Waterworks District No. 4, recorded August 30, 1974 in Book 11232, Page 1963 of Official Records.Affecting a 20 foot strip in Lot E ' 6. The effect of an agreement for construction of Master Planned Facilities dated September 8, 1980 by and between Morris Misben and The City of San Juan Capistrano, upon the terms, provisions and conditions contained therein,recorded October 6, 1980 om Bppl 13776,Page 590 of Official Records. Reference being hereby made to the record thereof for the full particulars. 7. The fact that the dedication to the City of San Juan Capistrano on the map of Tract 9784 designates Lot E as being for flood control purposes. END OF ITEMS Note 1. If a county recorder, title insurance company,escrow company, real estate broker, real estate agent or association provides a copy of a declaration, governing document or deed to any person,California law requires that the document provided shall include a statement regarding any unlawful restrictions. Said statement is to be in at least 14-point bold face type and may be stamped on the first page of any document provided or included as a cover page attached to the requested document. Should a party to this transaction request a copy of any document reported herein that fns this category,the statement is to be included in the manner described. 1 3 CLTA Pml.mi Report krt -ModA.d(11117M) 5, r. NOTES: (continued) Title No. 07-259904244-JG Locate No. CAFNT0925-0925-0199-0259904244 Note 2. Wiring instructions for Fidelity National title Company, Corona, CA,are as follows: Receiving Bank: Union Bank of California (800)849-6466 Irvine,CA 92614 ABA Routing No.: 122000496 Credit Account Name: Fidelity National title Company- Builder Services Payoff/Admin 1315 Corona Pointe Court,Corona, CA 92879 Credit Account No.: 9100586700 Reference No.: 07-259904244 These wiring instructions are for this specific transaction involving the Title Department of the Newport Beach office of Fidelity National Title Company.These instructions therefore should not be used in other transactions without first verifying the Information with our accounting department. It is imperative that the wire text be exactly as indicated. Any extraneous information may cause unnecessary delays in confirming the receipt of funds. END OF NOTES i i 4 II CLTA P e iminary Report Form-Modified(11/170) 675-26 :A•+s nr as PNEPIiFD tM MAwf SEE SPECIAL PAGE 675.269 FOR SUBSURFACE FE T?LE ASSESSMENT _,¢Y:r tsmw R-PI. IF s G¢`. S:13 5f 3 W DAsµD hNRA'Mf K T. . iKWlrl I [5"Nµ(5 tM((Nlr IY F0.!OW✓t5. W,h a PFtRf4r,Civ'. R.PIM.K dx6 ,D. 4 CM�iIW:MI 11W!F ASSY GMr 27 3 3 28 29 4 = p Y 110 v RACT 2 t t s.O tnon DiY ma.+r •-. Qaq .%i . P 'y two 3 Y tort 261 cO NO. 9784 • ,s�trj ✓ r .s Na� 'y CAMINO .nr ~• rANoLAS LAS wrt M 262 '0A'ie 32 a 20 x vn/YA F rrrcer MARCH 198f 7RACF AMO. 9784 M. M. 492-23%030 BIG NOTE-ASSESSOR'S BLOCK 8 ASSESSOR'S MAP PARCEL NLGNEAS SOOK675 PAGE 26 CD SNOWN W OECLES CoL OF ORANGE 1 ATTACHMENT ONE i AMERICAN LAND TITLE ASSOCIATION RESIDENTIALTITLE INSURANCE POLICY(6-1-87)EXCLUSIONS In addition to the Exceptions in Schedule B,you are not insured 3. Title Risks: against loss,costs,attorneys'fees,and expenses resulting from: • that are created,allowed,or agreed to by you I. Governments]police power,and the existence or violation of • that are known to you,but not to us,on the Policy Date- any law or government regulation.This includes building and unless they appeared in the public records zoning ordinances and also laws and regulations concerning: a that result in no loss to you • land use • that first affect your title after the Policy Date—this does not • improvements on the land limit the labor and material lien coverage in Item 8 of • land division Covered Title Risks • environmental protection 4. Failuretop value for your title. This exclusion does not apply to violations or the enforcement 5. Lack of a right: of these matters which appear in the public records at policy • to any land outside the area specifically described and date. referred to in Item 3 of Schedule A This exclusion does not limit the zoning coverage described in or Items 12 and 13 of Covered Title Risks. • in streets,alleys,or waterways that touch your land 2. The right to take the land by condemning it,unless: This exclusion does not limit the access coverage in Item 5 of ! a notice of exercising the right appears in thepublicrecords Covered Title Risks. on the Policy Date • the takingg happened prior to the Policy Date and is binding on you if you bought the land without knowledge of the taldng In addition to the Exclusions,you are not insured against loss, 3. Any facts about the land which a correct survey would disclose costs,attorneys'fees,and the expenses resulting from and which are not shown by the public records.This does not 1. Any rights,interests,or clams of parties in possession of the limit the forced removal coverage in Item 12 of Covered land not shown by the public records. Title Risks. 2. Any easements or liens not shown by the public records.This 4. Any water rights or claims or title to water in or under the land, does not limit the lien coverage in Item 8 of Covered whether or not shown by the public records. Title Risks. Anselment One(11/17106) k4q[ 4 ATTACHMENT ONE (CONTINUED) CALIFORNIA LAND TITLE ASSOCIATION STANDARD COVERAGE POLICY—1990 EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of (a)whether or not recorded in the public records at Date of this policy and the Company will not pay loss or damage,costs, Policy, but created, suffered, assumed or agreed to by the attomeys'fees or expenses which arise by reason of: insured claimant; . 1. (a)Any law,ordinance or governmental regulation(including (b)not known to the Company, not recorded in the public but not limited to building and zoning laws, ordinances,or records at Date of Policy,but known to the insured claimant regulations) restricting, regulating, prohibiting or relating and not disclosed in writing to the Company by the insured (i)the occupancy, use, or enjoyment of the land; (ii)the claimant prior to the date the insured claimant became an character,dimensions or location of any improvement now or insured under this policy; hereafter erected on the land;(iii)a separation in ownership or (c)resulting in no loss or damage to the insured claimant; a change in the dimensions or area of the land or any parcel of (d)attaching or created subsequent to Date of Policy;or which the land is or was a part; or (iv)environmental (e)resulting in loss or damage which would not have been protection, or the effect of an violation of these laws, sustained if the insured claimant had paid value for the insured ordinances or governmental regulations,except to the extent mortgage or for the estate or interest insured by this policy. that a notice of the enforcement thereof or a notice of a defect, 4. Unenforceability ofthe lien of the insured mortgage because of lien or encumbrance resulting from a violation or alleged the inability or failure of the insured at Date of Policy,or the violation affecting the land has been recorded in the public inability or failure of an subsequent owner of the indebtedness, records at Date of Policy. to comply with the applicable doing business laws of the state (b)Any governmental police power not excluded by(a)above, in which the land is situated. except to the extent that a notice of the exercise thereof or a 5. Invalidity or unenforceability of the lien of the insured ' notice of a defect, lien or encumbrance resulting from a mortgage,or claim thereof,which arises out of the transaction violation or alleged violation affecting the land has been evidenced by the insured mortgage and is based upon usury or recorded in the public records at Date of Policy. any consumer credit protection or truth in lending law. 2. Rights of eminent domain unless notice of the exercise thereof 6. Any claim, which arises out of the transaction vesting in the has been recorded in the public records at Date of Policy,but insured the estate or interest insured by this policy or the not excluding from covers ggee any taking which has occurred transaction creating the interest of the insured lender,byreason prior to Date of Policy whiehwouldbebinding onthe rights of of the operation of federal bankruptcy, state insolvency or a purchaser for value without knowledge. similar creditors'rights taws. 3. Defects,liens,encumbrances,adverse claims,or othermattes: SCHEDULE B,PART I EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage(and the Company will not pay costs,attomeys'fees or expenses)which arise by reason of: PART 1. Taxes or assessments which are not shown as existing liens by 3. Easements,liens or encumbrances,or claims thereof,not shown the records of any taxing authority that levies taxes or by the public records. assessments on real property or by the public records. 4. Discrepancies, conflicts in boundary lines, shortage in area, Proceedings by a public agency which may result in taxes or encroachments,or any otherfacts which a correct surveywould assessments, or notices of such proceedings,whether or not disclose,and which are not shown by the public records. shown by the records of such agency or by the public records. 5. (a)Unpatented mining claims;(b)reservations or exceptionsin 2. Any facts,tights,interests or claims which are not shown by the patents or in Acts authorizing the issuance thereof;(e)water public records but which could be ascertained by an inspection rights, claims or title to water, whether or not the matters of the land or which may be asserted by persons in possession excepted under(a),(b),or(c)are shown by the public records. thereof. 1 Attadvnent One(1 MW06) ATTACHMENT ONE — (CONTINUED) AMERICAN LAND TITLE ASSOCIATION LOAN POLICY(10-17-92) WITH A.L.T.A.ENDORSEMENT-FORM I COVERAGE EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverageof material or to the extent insurance is afforded herein as to this policy and the Company will not pay loss or damage,costs, assessments for street improvements under construction or attorneys'fees or expenses which arise by reason of: completed at Date of Policy);or 1. (a)Any law,ordinance or governmental regulation(including (e)resulting in loss or damage which would not have been but not limited to building and zoning laws, ordinances, or sustained if the insured claimant had paid value for the insured regulations)restricting, regulating, prohibiting or relating to mortgage. (i)the occupancy, use, or enjoyment of the land; (ii)the 4. Unenforceabilityofthe lien ofthe insured mortgage because of character,dimensions or location of any improvement now or the inability or failure of the insured at Date of Policy,or the hereafter erected on the land;(iii)a separation in ownership or inability or failure of any subsequent owner of the indebtedness, a change in the dimensions or area of the land or any parcel of to comply with applicable doing business laws of the state in .y. which the land is or was a part; or (iv)environmental which the land is situated. "I protection, or the e$'ecl of any violation of these laws, 5. Invalidity or unenforceability of the lien of the insured , ordinances or governmental regulations,except to the extent mortgage,or claim thereof,which arises out of the transaction that a notice of the enforcement thereof or a notice of a defect, evidenced by the insured mortgage and is basad upon usury or lien or encumbrance resulting from a violation or alleged any consumer credit protection or truth in lending law. violation affecting the land has been recorded in the public 6. Any statutory lien for services,labor or materials(or the claim records at Date of Policy. of priority of any statutory lien for services,labor or materials (b)Any governmental police power not excluded by(a)above, over the lien of the insured mortgage) arising from an except to the extent that a notice of the exercise thereof or a improvement or work related to the lend which iscontraMedfor notice of a defect, lien or encumbrance resulting from a and commenced subsequent to Dale of Policy and is not violation or alleged violation affecting the land has been financed in whole or in pati by proceeds of the indebtedness recorded in the public records at Date of Policy, secured by the insured mortgage which at Date of Policy the 2. Rights of eminent domain unless notice of the exercise thereof insured has advanced or is obligated to advance. has been recorded in the public records at Date of Policy,but 7. Any claim, which arises out of the transaction seating the not excluding from coverage any taking which has occurred interest of the mortgaggee insured by this Policy,by mason ofthe prior to Date of Policy which would be binding on the rights of operation of federal bankruptcy, state insolvency,or similar — a purchaser for value without knowledge. creditors'rights laws,that is based on: 3. Defects,liens,encumbrances,adverse claims,or other matters: (i) the transaction creating the interest ofthe msutedmoriggagee (a)crcated, suffered, assumed or agreed to by the insured being deemedafraudulentcxmvcyanceorfraudulentbwsferor claimant; (ii)the subordination of the interest ofthe insured mortgagee as (b)not known to the Company, not recorded in the public a result of the application of the doctrine of equitable records at Date of Policy,but known to the insured claimant subordination;or and not disclosed in writing to the Company by the insured (iii) the transaction creating the interest of the insured claimant prior to the date the insured claimant became an mortgagee being deemed a preferential transfer except where insured under this policy; the preferential transfer results from the failure: (c)resulting in no loss or damage to the insured claimant; (a)to timely record the instrument of transfer;or (d)attaching or created subsequent to Date of Policy(except to (b)of such recordation to impart notice to a purchaser for the extent that this policy insures the priority of the lien of the value or a judgement or lien creditor. insured mortgage over any statutory lien for services,labor or The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage,the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions frau Coverage: 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 4. Discrepancies, conflicts in boundary lines,shortage in area, the records of any taxing authority that levies taxes or encroachments,or any other facts which a correct=would assessments tui real property or by the public records. disclose,and which are not shown by the public race dr s. Proceedings by a public agency which may result in taxes or 5. (a)Unpatented muting claims;(b)reservations orexoeptionsin assessments, or notices of such proceedings,whether or not patents or in Acts authorizing the issuance thereof;(c)water shown by the records of such agency or by the public records. rights, claims or title to water, whether or not the matters 2. Any facts,rip]tts,interests or claims which are notshownby the excepted under(a),(b)or(c)are shown by the public records. 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 orencumbrances,orclaim thereat not shown by the public records. Anacla writ Om(11117/06) g 1 ATTACHMENT ONE (CONTINUED) 2006 AMERICAN LAND TITLE ASSOCIATION LOAN POLICY(06-17-06) EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of (c)resulting in no loss or damage to the Insured Claimant; this policy,and the Company will not pay loss or damage,costs, (d)attaching or created subsequent to Date of Policy(however, attorneys'fees,or expenses that arise by reason of: this does not modify or limit the coverage provided under I. (a)An law, ordinance, permit, or governmental regulation Covered Risk 11, 13,or 14);or (including those relating to building and ztming) restricting, (e)resulting in loss or damage that would not have been regulating,prohibiting,or relating to sustained if the Insured Claimant had paid value for the Insured (i) the occupancy,use,or enjoyment of the Land; Mortgage. (n)the character, dimensions, or location of any 4. Unenforceability of the lien of the Insured Mortgage becauseof improvement erected on the Land; the inability or failure of an Insured to comply with applicable (iii) the subdivision of land;or doing-business laws of the state where the Landis situated. (rv) environmental protection; 5. Invalidity or unenforceability in whole or in part of the lien of _ or the effect of any violation of these laws, ordinances, or the Insured Mortgage that arises out of the transaction governmental regulations.This Exclusion I(a)does notmodify evidenced by the Insured Mortgage and is based upon usury or or limit the coverage provided under Covered Risk 5. any consumer credit protection or truth-in-lending law. (b)Any governmental police power.This Exclusion 1(b)does 6. Any claim, by reason of the operation of federal bankruptcy, not modify or limit the coverage provided under Covered state insolvency, or similar creditors' rights laws, that the Risk 6. transaction creating the lien of the Insured Mortgage,is 2. Rights of eminent domain.This Exclusion does not modify or (a)a fraudulent conveyance or fraudulent transfer,or limit the coverage provided under Covered Risk 7 or 8. (b)a preferential transfer for any reason not stated in Covered ' 3. Defects,liens,encumbrances,adverse claims,or other matters Risk 13(b)of this policy. (a)created, suffered, assumed, or agreed to by the Insured 7. Any lien on the Title for real estate taxes or assessments Claimant; imposed by governmental authority and created or attaching (b)not Known to the Company, not recorded in the Public between Date of Policy and the date of recording of the Insured Records at Date of Policy,but Known to the Insured Claimant Mortgage in the Public Records, This Exclusion does not and not disclosed in writing to the Cornany by the Insured modify or limit the coverage provided under Covered Claimant prior to the date the Insured Claimant became an Risk I I(b). Insured under this policy; The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage,the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage: EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage(and the Company will not pay costs,attorneys'fees or expenses)that arise by reason of: 1. (a)Taxes or assessments that are not shown as existing liens by 3. Easements,liens or encumbrances,orclaims theieof,not shown the records of any taxing authority that levies taxes or by the Public Records. assessments on real property or by the Public Records; 4. Any encroachment, encumbrance, violation, variation, or (b)proceedings by a public agency that may result in taxes or adverse circumstance affecting the Title that would be disclosed assessments,or notices of such proceedings,whether or not by an accurate and complete land survey of the Land and not shown by the records of such agency or by the Public Records. shown by the Public Records. 2. Any facts,rights,interests,or claims that are not shown by the 5. (a)Unpatented mining claims;(b)reservations or exceptions in Public Records but that could be ascertained by an inspection patents or in Acts authorizing the issuance thereof,(e)water of the Land or that may be asserted by persons in possession of rights, claims or title to water, whether or not the matters the Land. excepted under(a),(b),or(c)are shown by the Public Records. Athwlui One(11/17/06) i• t` ATTACHMENT ONE (CONTINUED) AMERICAN LAND TITLE ASSOCIATION OWNER'S POLICY(10-17-92) EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of 3. Defects,liens,encumbrances,adverse claims,or other matters: this policy and the Company will not pay loss or damage,costs, (a)created, suffered, assumed or agreed to by the insured attorneys'fees or expenses which arise by reason of: claimant; 1. (a)Atry law,ordinance or governmental regulation(including (b)not known to the Company, not recorded in the public but not limited to building and zoning laws, ordinances,or records at Date of Policy, but known to the insured claimant regulations) restricting, regulating,prohibiting or relating to and not disclosed in writing to the Company by the insured (i)the occupancy, use, or enjoyment of the land; (ii)the claimant prior to the date the insured claimant became an ' character,dimensions or location of any improvement now or insured under this policy; ` here aRer erected on the land;(iii)a separation in ownership or (c)resulting in no loss or damage to the insured claimam; a change in the dimensions or area of the land or aT parcel of (d)attaching or created subsequent to Date of Policy,or which the land is or was a pari, or (iv)environmental (e)resulting in loss of damage which would not have been protection, or the effect of any violation of these laws, sustained'ftheinsured claimant had paid value for the estateor ordinances or governmental regulations,except to the extent interest insured by this policy, that a notice of the enforcement thereof or a notice of a defect, 4. Any claim,which arises out of the transaction vesting in the lien or encumbrance resulting from a violation or alleged insured the estate or interest insured by this policy,by reason of violation affecting the land has been recorded in the public the operationoffederal bankruptcy,state insolvency,orsimilar records at Date of Policy. creditors'rights laws,that is based on: (b)Any governmental police power not excluded by(a)above, (i) the transaction creating the estate or interest insured by this j except to the extent that a notice of the exercise thereof or policy being deemed a fraudulent conveyance or fraudulent _ notice of a defect, lien or encumbrance resulting from a transfer,or violation or alleged violation affecting the land has been (ii)the transaction creating the estate or interest insured by this recorded in the public records at Date of Policy. policy being deemed a preferential transfer except where the 2. Rights of eminent domain unless notice of the exercise thereof preferential transfer results from the failure: has been recorded in the public records at Date of Policy,but (a)to timely record the instrument of transfer;or not excluding from coverage any taking which has occurred (b)of such recordation to impart notice to a purchaser for prior to Date of Policy which would be binding on the rights of value or a judgement or lien creditor. a purchaser for value without knowledge. The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage,the Exceptions from Coverage in a Standard Coverage policy will also include the - following Exceptions from Coverage: EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage(and the Company will not pay costs,attomeys'fees or expenses)which arise by reason of. f�` 1. Taxes or assessments which are not shown as existing liens by 3. Easements,liens or encumbrances,or claims thereof,not shown s the records of any taxing authority that levies taxes or by the public records. assessments on real properly or by the public records. 4. Discrepancies, conflicts in boundary lines, shortage in area, f Proceedings by a public agency which may result in taxes or encroachments,or any other facts which a correctsurveywoukl assessments,or notices of such proceeding,whether or not disclose,and which are not shown by the public records. shown by the records of such agency or by Ore public records. 5. (a)Unpatented mining claims;(b)reservations orexceptions in 2. Any facts,rights,interests or claims which are not shown by the patents or in Acts authorizing the issuance thereof;(c)water public records but which could be ascertained by an inspection rights, claims or title to water, whether or not the matters of the land or which may be asserted by persons in possession excepted under(a),(b)or(c)are shown by the public records. thereof. Augelmunr One(11/17,06) i` 1 ATTACHMENT ONE (CONTINUED) 2006 AMERICAN LAND TITLE ASSOCIATION OWNER'S POLICY(06-17-06) EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of (b)not Known to the Company, not recorded in the Public this policy,and the Company will not pay lass or damage,costs, Records at Date of Policy,but Known to the Insured Claimant attorneys'fees,or expenses that arise by reason of: and not disclosed in writing to the Company by the Insured 1. (a)Any law, ordinance, permit, or governmental regulation Claimant prior to the date the Insured Claimant became an I (including those relating to building and zoning)restricting, Insured under this policy; regulating,prohibiting,or relating to (c)resulting in no loss or damage to the Insured Claimant; (i) the occupancy,use,or enjoyment of the Land; (d)attaching or created subsequent to Date of Policy(however, (ii)the character, dimensions, or location of any this does not modify or limit the coverage provided under improvement erected on the Land; Covered Risk 9 and 10);or (iii) the subdivision of land;or (e)resulting in loss or damage that would not have been (iv) environmental protection; sustained if the Insured Claimant had paid value for the Title. or the effect of any violation of these laws, ordinances, or 4. Any claim,by reason of the operation of federal bankruptcy, governmental regulations.This Exclusion I(a)does notmodify state insolvency, or similar creditors' rights laws, that the or limit the coverage provided under Covered Risk 5. transaction vesting the Title as shown in Schedule A,is (b)Any governmental police power.This Exclusion 1(b)does (a)a fraudulent conveyance or fraudulent transfer;or not modify or limit the coverage provided under Covered (b)a preferential transfer for any reason not stated in Covered ' Risk 6. n 9 of this policy. A 2. Rights of eminent domain. This Exclusion does not modify or 5. Any lien on the Title for real estate taxes or assessments limit the coverage provided under Covered Risk 7 or 8. imposed by governmental authority and created or attaching 3. Defects,liens,encumbrances,adverse claims,or other matters between Dale ofPolicy and the date ofrecording of the deed or (a)created, suffered, assumed, or agreed to by the Insured other instrument of transfer in the Public Records that vests Claimant; Tide as shown in Schedule A. The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage,the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage: EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage(and the Company will not pay costs,attorneys'fees or expenses)that arise by reason of: t. (a)Taxes or assessments that are not shown as existing liens by 3. Easements,liens or encumbrances,or claim thered,,not shown the records of any taxing authority (hat levies taxes or by the Public Records. assessments on realproperty or by the Public Records; (b) 4. Any encroachment, encumbrance, violation, variation, or , proceedings by a public agency that may result in taxes or adverse circumstance affecting the Title thotwouldbediseiosed assessments, or notices of such proceedings, whether or not by an accurate and complete land survey of the Land and that shown by the records of such agency or by the Public Records. arc not shown by the Public Records. 2. Any facts,rights,interests,or claims that are not shown in the 5. (a)Unpatented mining claims;(b)reservations orexceptions in Public Records but that could be ascertained by an inspection patents or in Acts authorizing the issuance thereof,(c)water of the Land or that may be asserted by persons in possession of rights, claims or title to water, whether or not the matters the Land. excepted under(a),(b),or(c)are shown by the Public Records. Amcameffi One(11/17/06) [[{{r ATTACHMENT ONE — (CONTINUED) CLTA HOMEOWNER'S POLICY OF TITLE INSURANCE(10-22-03) ALTA HOMEOWNER'S POLICY OF TITLE INSURANCE(10-22-03) EXCLUSIONS In addition to the Exceptions in Schedule B,You are not insured against loss,costs,attorneys'foes,and expenses resulting from: I. Governmental police power,and the existence or violation of b, the taking happened before the Policy Date and is binding any low or government regulation. This includes ordinances, on You if You bought the Land without Knowing of the laws and regulations concerning: taking, a. building 4. Risks: b. zoning a. that are created,allowed,or agreed to by You,whether or c. Land use not they appear in the Public Records; d. improvements on Land b. that are Known to You at the Policy Date,but not to Us, e. Land division unless they appear in the Public Records at the Policy Date; f. environmental protection c. that result in no loss to You;or This Exclusion does not apply to violations or the enforcement of d. that first occur after the Policy Date—this does not limit the 'I these matters if notice of the violation or enforcement appears in coverage described in Covered Risk 7, 8.d, 22, 23, 24 the Public Records at the Policy Date, or 25. This Exclusion does not limit the coverage described in Covered 5. Failure to pay value for Your Title. Risk 14,15, 16, 17 or 24. 6. Lack of a right: 2. The failure of Your existing structures,or anypart of them,to a. to any Land outside the area specifically described and be constructed in accordance with applicable building codes. referred to in paragraph 3 of Schedule A;and This Exclusion does not apply to violations ofbuilding codes if b. in streets,alleys,or waterways that touch the Land. notice of the violation appears in the Public Records at the This Exclusion does not limit the coverage described in Covered Policy Date. Risk I 1 or 18. 3. The right to take the Land by condemning it,unless: a. notice of exercising the right appears inthe Public Records at the Policy Date;or LIMITATIONS ON COVERED RISKS Your insurance for the following Covered Risks is limited on the Owner's Coverage Statement as follows: • For Covered Risk 14,15,16 and 18,Your Deductible Amount and Our Maximum Dollar Limit of Liability shown in Schedule A. The deductible amounts and maximum dollar limits shown on Schedule A are as follows: - Your Deductible Amount Our Maximum Dollar Limit of Liability Covered Risk 14: 1,,QQ%ofPolicy Amount $ 10.000.00 or $2500.00 (whichever is less) Covered Risk 15: 1,&/o of Policy Amount $25,000.00 or $5,000.00 (whichever is less) Covered Risk 16. 1.00%of Policy Amount $25.000.00 or $50 . (whichever is less) Covered Risk 18: IQ%of Policy Amount $5.000.00 or $2,500.00 (whichever is less) Anachment One(11!17/06) i 1 ATTACHMENT ONE (CONTINUED) ALTA EXPANDED COVERAGE RESIDENTIAL LOAN POLICY(10113101) EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of Risks 8, 16, 18, 19,20,21,22,23,24,25 and 26);or - Us policy and the Company will not pay loss or damage,costs, (e)resulting in loss or damage which would not have been attorneys'fees or expenses which arise by reason of sustained if the Insured Claimant had paid value forthe Insured I. (a)Any law,ordinance or governmental regulation(includin Mortgage. but not limited to zoning laws, ordinances, or regulations 4. Unenforceability of the lien of the Insured Mortgage been=of restricting, regulating, prohibiting or relating to (i)the the inability or failure of the Insured at Date of Policy,or the occupancy,use, or enjoyment of the Land;(ii)the character, inability or failure of any subsequent owner of the indebtedness, dimensions or location of any improvements now or hereafter to comply with applicable doing business laws of the state in erected on the Land;(iii)a separation in ownership or a change which the Land is situated. in the dimensions or areas of the Land or arty parcel of which 5. Invalidity or unenforceability of the lien of the Insured the Land is or was a part;or(iv)environmental protection,or Mortgage,or claim thereof,which arises out of the transaction the effect of any violation of these laws, ordinances or evidenced by the Insured Mortgage and is based upon usury, governmental regulations,except to the extent that a notice of except as provided in Covered Risk 27,or any consumer credit the enforcement thereof or a notice of a defect, lien orprotection or truth in lending law. encumbrance resulting from a violation or alleged violation 6. Real property taxes or assessments of any governmental affectin the Land has been recorded in the Public Records at authority which become a lien on the Land subsequent to Date Date of Policy. This exclusion does not limit the coverage of Policy.This exclusion does not limit the coverage provided ' provided under Covered Risks 12, 13,14,and 16 of this policy. under Covered Risks 7,8(e)and 26. (b)Any governmental police power not excluded by(a)above, 7. Any claim of invalidity,unenforceability or lack of priority of except to the extent that a notice of the exercise thereof or a the lien of the Insured Mortgage as to advances or notice of a defect, lien or encumbrance resulting from a modifications made after the Insured has Knowledge that the violation or alleged violation affecting the Land has been vestee shown in Schedule A is no longer the owner of the estate recorded in the Public Records at Date of Policy. This or interest covered by this policy.This exclusion does not limit exclusion does not limit the coverage provided under Covered the coverage provided in Covered Risk 8. Risks 12, 13, 14,and 16 of this policy. 8. Lack of priority of the lien of the Insured Mortgage as to each 2. Rights of eminent domain unless notice of the exercise thereof and every advance made after Date of Policy,and all interest has been recorded in the Public Records at Date of Policy,but charged thereon,over liens,encumbrances and other matters not excluding from coversge any (akin&which has occurred affecting the title, the existence of which are Known to the prior to Date of Policy which would be binding on the rights of Insured at: a purchaser for value without Knowledge. (a)The time of the advance;or 3. Defects,liens,encumbrances,adverse claims or other matters: (b)The time a modification is made to the terms of the insured (a)created, suffered, assumed or agreed to by the Insured Mortgage which changes the rate of interest charged,if the rate Claimant; of interest is greater as a result of the modification than it would (b)not Known to the Company, not recorded in the Public have been before the modification. This exclusion does not Records at Date of Policy,but Known to the Insured Claimant limit the coverage provided in Covered Risk 8. ` and not disclosed in writing to the Company by the Insured 9. The failure of the residential structure,or any portion thereof to 3 Claimant prior to the date the Insured Claimant became an have been constructed before, on or after Date of Policy in ; hisured under this policy, accordance with applicable building codes.Thisexclusion does (c)resulting in no loss damage to the Insured Claimant; not apply to violations of building codes if notice of the (d)attaching or created subsequent to Date of Policy (this violation appears in the Public Records at Date of Policy, paragraph does limit the coverage provided under Covera/ 1 Attadnnaa One(11/17/06) r i Notice You maybe entitled to receive a$20.00 discount on escrow services if you purchased,sold or refinanced residential property In California between May 19, 1995 and November 1,2002. If you had more than one qualifying transaction, you may be entitled to multiple discounts. If your previous transaction involved the same property that is the subject of your current transaction,you do not have to do anything;the Company will provide the discount,provided you are paying for escrow or title services in this transaction. If your previous transaction involved property different from the property that is subject of your current transaction,you must-prior to the close of the current transaction-inform the Company of the earlier transaction, provide the address of the property involved in the previous transaction,and the date or approximate date that the escrow dosed to be eligible for the discount. Unless you inform the Company of the prior transaction on property that is not the subject of this transaction,the Company has no obligation to conduct an investigation to determine if you qualify for a discount. If you provide the Company information concerning a prior transaction, the Company is required to determine if you qualify for a discount which is subject to other terms and conditions. Effective through November 1, 2014 1 Fidelity National Title Group of Companies'Private Statement July 1,2001 We recognize and respect the privacy expectations of today's consumers and the requirements of applicable federal and state privacy laws. We believe that making you aware of how we use your non-public personal information(Tersonaf Information'),and to whom It is disclosed,will form the basis for a relationship of trust between us and the public that we serve. This Privacy Statement provides that explanation. We reserve the right to change this Privacy Statement from time to time consistent with applicable privacy laws. In the course of our business,we may coiled Personal Information about you from the following sources: • From applications or other forms we receive from you or your authorized representative; • From your transactions with,or from the services being performed by,us,our affiliates,or others; • From our Internet web sloes; • From the public records maintained by governmental entitles that we either obtain directly from Corse entities,or from our affiliates or others;and • From consumer or other reporting agencies. Our Policies Regarding the Protection of the Confidentiality and Security of Your Personal Information We maintain physical, electronic and procedural safeguards to protect your Personal Information from unauthorized access or Intrusion. We limit access to the Personal Information only to those employees who meed such access In connection with providing products or services to you or for other legitimate business purposes. Our Policies and Practices Regarding the Sharing of Your Personal Information We may stare your Personal Information with our affiliates,such as Insurance companies,agents,and other real estate settlement service providers. We also may disclose your Personal Information: ' to agents,brokers a representatives to provide you with services you have requested; to third-party contractors or service providers who protide services or perform marketing or other functions on our behalf;and to others with whom we enter into joint marketing agreements for products or services that we believe you may find of interest. In addition,we will disclose your Personal Information when you direct or give us permission,when we are required by law to do so, _ or when we suspect fraudulent or criminal activities. We also may disclose your Personal Information when otherwise permitted by applicable privacy laws such as,for example,when disclosure Is needed to enforce our rights arising out of any agreemeM,transaction or relationship with you. One of the important responsibilities of some of our affiliated companies is to record documents in the public domain. Such documents may contain your Personal Information. Right to Access Your Personal Information and Ability to Correct Errors or Request Changes or Deletion Certain states afford you the right to access your Personal Information and,under certain circumstances,to find out to whom your Personal Information has been disclosed. Also,certain states afford you the right to request correctiay amendmertor deletion of your Personal Information. We reserve the right,where permitted by law,to large a reasonable fee to cover the costs incurred in responding to such requests. All requests must be made in writing to the following address: Fidelity National Title Group,Inc. Privacy Compliance Officer 601 Riverside Avenue Jacksonville,FL 32204 Multiple Products or Services If we provide you with more than one financial product or service,you may receive more than one privacy novice from us. We apologize for any Inconvenience this may cause you. PWlraw Sut ant(prMq)(11(05) July 9, 2007 Mr. Peter Salgado, P.E. Senior Civil Engineer CITY OF SAN JUAN CAPISTRANO 32400 Paseo Adelanto San Juan Capistrano, CA 92675 i Re: ACU Canyon Mitigation Easement Dear Mr. Salgado: Following the review of the existing and readily available information, we found no active facilities easement that has an impact on the mitigation area reserved for the ACU Canyon Project. Sincerely, Michael Fakhar, PE a a 22312 Birchleaf,Mission Viejo,CA 92692 Tel:(949)340-6642 Fax:(949)340-6640 !- ' EXHIBIT E Map of Natural Condition of the Restricted Property 1 1 288664 19 6/28/2007 9:39 AM ' � ..V :. rim" y 14 n 19 NIPPON mWiWiii pillillill lip "' -� — \ J Site A _— -- --- \� \ - - - - - - - -- - - - - - - - - J \ ' Site B xly 07.83 1 It / x42 Aou Can EnhancemArea rea Aou Canyon Boundary a � Lag am.. las Al Edsdng Drainages tJ m�n NOTE: Edg6p elwadona to mnWn unchanged City of San Juan Capistrano TR-3 Reservoir Project I�/—\�� Acu Canyon.Off-site Wetland Enhancement Area(0.34 acre) N