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2015/06/02 California Electric Power Company Policy of Title Insurancecommonweami LAND TITLE COMPANY OUR NO.; 08021079 Property: 28401 BRADLEY ROAD, CITY OF MENIFEE, CA Policy No.: CA-SFXFC-IMP-81472-1-15-08021079 Dear Customer: Commonwealth Land Title Company 4100 Newport Place Drive, Suite 120 Newport Beach, CA 92660 Phone: (949) 724-3170 Attached is your CLTA Standard Coverage Policy of Title Insurance, per your instructions. NOTE: Your policy is a computer generated product. Although lacking color and "live" signatures, it is the original of your policy. Thank you for selecting Commonwealth Land Title Company for your transactional management needs. Enclosure 81472 CLTA Standard Coverage — 1990 (04-08-14) Page 1 © California Land Title Association. All rights reserved. The use of this Form is restricted to CLTA subscribers in good standing as of the date of use. All other uses are prohibited. Reprinted under license or express permission from the California Land Title Association. Commonwealth' LAND TITLE COMPANY re Commonwealth Land Title Insurance Company P Y Commonwealth Land Title Company 4100 Newport Place Drive , Suite 120 Newport Beach, CA 92660 Phone: (949) 724-3170 POLICY NO.: CA-SFXFC-IMP-81472-1-15-08021079 POLICY OF TITLE INSURANCE Issued by Commonwealth Land Title Insurance Company SUBJECT TO THE EXCLUSIONS FROM COVERAGE, THE EXCEPTIONS FROM COVERAGE CONTAINED IN SCHEDULE B AND THE CONDITIONS AND STIPULATIONS, COMMONWEALTH LAND TITLE INSURANCE COMPANY, a Nebraska corporation, herein called the Company, insures, as of Date of Policy shown in Schedule A, against loss or damage, not exceeding the Amount of Insurance stated in Schedule A, sustained or incurred by the insured by reason of: 1. Title to the estate or interest described in Schedule A being vested other than as stated therein; 2. Any defect in or lien or encumbrance on the title; 3. Unmarketability of the title; 4. Lack of right of access to and from the land; and in addition, as to an insured lender only: The invalidity or unenforceability of the lien of the insured mortgage upon the title; 6. The priority of any lien or encumbrance over the lien of the insured mortgage, said mortgage being shown in Schedule B in the order of its priority; The invalidity or unenforceability of any assignment of the insured mortgage, provided the assignment is shown in Schedule B, or the failure of the assignment shown in Schedule B to vest title to the insured mortgage in the named insured assignee free and clear of all liens. The Company will also pay the costs, attorneys' fees and expenses incurred in defense of the title or the lien of the insured mortgage, as insured, but only to the extent provided in the Conditions and Stipulations. Commonwealth Land Title Insurance Company Countersigned: Authorized Officer or Agent COMMONWEALTH LAND TITLE INSURANCE COMPANY q R�� By. 'I SEAL Rmav amok. Y.WnI - Almr N wi mW 81472 CLTA Standard Coverage — 1990 (04-08-14) Page 2 © California Land Title Association. All rights reserved. The use of this Form is restricted to CLTA subscribers in good standing as of the date of use. All other uses are prohibited. Reprinted under license or express permission from the California Land Title Association. Order'No. 08021079-920-CMM-CM8 Policy No. CA-SFXFC-IMP-81472-1-15-08021079 EXCLUSIONS FROM COVERAGE The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees are expenses which arise by reason of: (a) Any law, ordinance or governmental regulations (including but not limited to building or zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating to (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. (b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or a notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. 2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge. Defects, liens, encumbrances, adverse claims or other matters: (a) whether or not recorded in the public records at Date of Policy, but created, suffered, assumed or agreed to by the insured claimant; (b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy; (c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy; or (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the insured mortgage or for the estate or interest insured by this policy. 4. Unenforceability of the lien of the insured mortgage because of the inability or failure of the insured at Date of Policy, or the inability or failure of any subsequent owner of the indebtedness, to comply with the applicable doing business laws of the state in which the land is situated. 5. Invalidity or unenforceability of the lien of the insured mortgage, or claim thereof, which arises out of the transaction evidenced by the insured mortgage and is based upon usury or any consumer credit protection or truth in lending law. 6. Any claim, which arises out of the transaction vesting in the insured the estate of interest insured by this policy or the transaction creating the interest of the insured lender, by reason of the operation of federal bankruptcy, state insolvency or similar creditors' rights laws. 81472 CLTA Standard Coverage — 1990 04-08-14) Page 3 © California Land Title Association. All rights reserved. The use of this Form is restricted to CLTA subscribers in good standing as of the date of use. All other uses are prohibited. Reprinted under license or express permission from the California Land Title Association. Order No. 08021079-920-CMM-CM8 Policy No. CA-SFXFC-IMP-81472-1-15-08021079 CONDITIONS AND STIPULATIONS 1. Definition of Terms. policy shall not continue in force in favor of any purchaser from an insured of The following terms when used in this policy mean: either (i) an estate or interest in the land, or (ii) an indebtedness secured by a (a) "insured": the insured named in Schedule A, and, subject to any rights purchase money mortgage given to an insured. or defenses the Company would have had against the named insured, those who (c) Amount of Insurance. The amount of insurance after the acquisition succeed to the interest of the named insured by operation of law as distinguished or after the conveyance by an insured lender shall in neither event exceed the from purchase including, but not limited to, heirs, distributees, devisees, least of: survivors, personal representatives, next of kin, or corporate or fiduciary (i) The amount of insurance stated in Schedule A; successors. The term "insured" also includes: (ii) The amount of the principal of the indebtedness secured by the (i) the owner of the indebtedness secured by the insured mortgage insured mortgage as of Date of Policy, interest thereon, expenses of foreclosure, and each successor in ownership of the indebtedness except a successor who is an amounts advanced pursuant to the insured mortgage to assure compliance with obligor under the provisions of Section 12(c) of these Conditions and Stipulations laws or to protect the lien of the insured mortgage prior to the time of acquisition (reserving, however, all rights and defenses as to any successor that the Company of the estate or interest in the land and secured thereby and reasonable amounts would have had against any predecessor insured, unless the successor acquired expended to prevent deterioration of improvements, but reduced by the amount of the indebtedness as a purchaser for value without knowledge of the asserted all payments made; or defect, lien, encumbrance, adverse claim or other matter insured against by this (iii) The amount paid by an governmental agency or governmental policy as affecting title to the estate or interest in the land); instrumentality, if the agency or the instrumentality is the insured claimant, in the (ii) any governmental agency or governmental instrumentality acquisition of the estate or interest in satisfaction of its insurance contract or which is an insurer or guarantor under an insurance contract or guaranty insuring guaranty, or guaranteeing the indebtedness secured by the insured mortgage, or any part 3. Notice of Claim to be Given by Insured Claimant. thereof, whether named as an insured herein or not; An insured shall notify the Company promptly in writing (i) in case of any (iii) the parties designated in Section 2(a) of these Conditions and litigation as set forth in 4(a) below, (ii) in case knowledge shall come to an Stipulations. insured hereunder of any claim of title or interest which is adverse to the title to (iv) Subject to any rights or defenses the Company would have had the estate or interest or the lien of the insured mortgage, as insured, and which against the named insured, A) the spouse of an insured who receives title to the might cause loss or damage for which the Company may be liable by virtue of land because of dissolution of marriage, B) the trustee or successor trustee of a this policy, or (iii) if title to the estate or interest or the lien of the insured trust or any estate planning entity created for the insured to whom or to which the mortgage, as insured, is rejected as unmarketable. If prompt notice shall not be insured transfers title to the land after the Date of Policy or C) the beneficiaries of given to the Company, then as to that insured all liability of the Company shall such a trust upon the death of the insured. terminate with regard to the matter or matters for which prompt notice is (b) "insured claimant": an insured claiming loss or damage. required; provided, however, that failure to notify the Company shall in no case (c) "insured lender": the owner of an insured mortgage. prejudice the rights of any insured under this policy unless the Company shall be (d) "insured mortgage": a mortgage shown in Schedule B, the owner of prejudiced by the failure and then only to the extent of the prejudice. which is named as an insured in Schedule A. 4. Defense and Prosecution of Actions; Duty of Insured Claimant to (e) "knowledge" or "known": actual knowledge, not constructive Cooperate. knowledge or notice which may be imputed to an insured by reason of the public (a) Upon written request by an insured and subject to the options records as defined in this policy or any other records which impart constructive contained in Section 6 of these Conditions and Stipulations, the Company, at its notice of matters affecting the land. own cost and without unreasonable delay, shall provide for the defense of such (f) "land": the land described or referred to in Schedule A, and insured in litigation in which any third party asserts a claim adverse to the title or improvements affixed thereto which by law constitute real property. The term interest as insured, but only as to those stated causes of action alleging a defect, "land" does not include any property beyond the lines of the area described or lien or encumbrance or other matter insured against by this policy. The Company referred to in Schedule A, nor any right, title, interest, estate or easement in shall have the right to select counsel of its choice (subject to the right of such abutting streets, roads, avenues, alleys, lanes, ways or waterways, but nothing insured to object for reasonable cause) to represent the insured as to those stated herein shall modify or limit the extent to which a right of access to and from the causes of action and shall not be liable for and will not pay the fees of any other land is insured by this policy. counsel. The company will not pay any fees, costs or expenses incurred by an (g) "mortgage": mortgage, deed of trust, trust deed, or other security insured in the defense of those causes of action which allege matters not insured instrument. against by this policy. (h) "public records": records established under state statutes at Date of (b) The Company shall have the right, at its own cost, to institute and Policy for the purpose of imparting constructive notice of matters relating to real prosecute any action or proceeding or to do any other act which in its opinion property to purchasers for value and without knowledge. may be necessary or desirable to establish the title to the estate or interest or the (i) "unmarketability of the title": an alleged or apparent matter affecting lien of the insured mortgage, as insured, or to prevent or reduce loss or damage to the title to the land, not excluded or excepted from coverage, which would entitle an insured. The Company may take any appropriate action under the terms of a purchaser of the estate or interest described in Schedule A or the insured this policy, whether or not it shall be liable hereunder, and shall not thereby mortgage to be released from the obligation to purchase by virtue of a contractual concede liability or waive any provision of this policy. If the Company shall condition requiring the delivery of marketable title. exercise its rights under this paragraph, it shall do so diligently. 2. Continuation of Insurance (c) Whenever the Company shall have brought an action or interposed a (a) Aft" Acquisition of Title U Insured Lender. If this policy insures the defense as required or permitted by the provisions of this policy, the Company owner of the indebtedness secured by the insured mortgage, the coverage of this may pursue any litigation to final determination by a court of competent policy shall continue in force as of Date of Policy in favor of (i) such insured jurisdiction and expressly reserves the right, in its sole discretion, to appeal from lender who acquires all or any part of the estate or interest in the land by any adverse judgment or order. foreclosure, trustee's sale, conveyance in lieu of foreclosure, or other legal (d) In all cases where this policy permits or requires the Company to manner which discharges the lien of the insured mortgage; (ii) a transferee of the prosecute or provide for the defense of any action or proceeding, an insured shall estate or interest so acquired from an insured corporation, provided the transferee secure to the Company the right to so prosecute or provide defense in the action is the parent or wholly -owned subsidiary of the insured corporation, and their or proceeding, and all appeals therein, and permit the Company to use, at its corporate successors by operation of law and not by purchase, subject to any option, the name of such insured for this purpose. Whenever requested by the rights or defenses the Company may have against any predecessor insureds; and Company, an insured, at the Company's expense, shall give the Company all (iii) any governmental agency or governmental instrumentality which acquires all reasonable aid (i) in any action or proceeding, securing evidence, obtaining or any part of the estate or interest pursuant to a contract of insurance or guaranty witnesses, prosecuting or defending the action or proceeding, or effecting insuring or guaranteeing the indebtedness secured by the insured mortgage. settlement, and (ii) in any other lawful act which in the opinion of the Company (b) Auer Conveyance of Title by an Insured. The coverage of this policy may be necessary or desirable to establish the title to the estate or interest or the shall continue in force as of Date of Policy in favor of an insured only so long as lien of the insured mortgage, as insured. If the Company is prejudiced by the the insured retains an estate or interest in the land, or holds an indebtedness failure of an insured to furnish the required cooperation, the Company's secured by a purchase money mortgage given by a purchaser from the insured, or obligations to such insured under the policy shall terminate, including any only so long as the insured shall have liability by reason of covenants of warranty liability or obligation to defend, prosecute, or continue any litigation, with regard made by the insured in any transfer or conveyance of the estate or interest. This to the matter or matters requiring such cooperation. 81472 CLTA Standard Coverage —1990 (04-08-14) Page 4 © California Land Title Association. All rights reserved. The use of this Form is restricted to CLTA subscribers in good standing as of the date of use. All other uses are prohibited. Reprinted under license or express permission from the California Land Title Association. Order No.: 08021079-920-CMM-CM8 Policy No.: CA-SFXFC-IMP-81472-1-15-08021079 5. Proof of Loss or Damage. policy for the claimed loss or damage, other than the payments required to be In addition to and after the notices required under Section 3 of these made, sliall terminate, including any liability or obligation to defend, prosecute or Conditions and Stipulations have been provided the Company, a proof of loss or continue any litigation. damage signed and sworn to by each insured claimant shall be furnished to the 7. Determination and Extent of Liability. Company within 90 days after the insured claimant shall ascertain the facts giving This policy is a contract of indemnity against actual monetary loss or rise to the loss or damage. The proof of loss or damage shall describe the defect damage sustained or incurred by the insured claimant who has suffered loss or in, or lien or encumbrance on the title, or other matter insured against by this damage by reason of matters insured against by this policy and only to the extent policy which constitutes the basis of loss or damage and shall state, to the extent herein described, possible, the basis of calculating the amount of the loss or damage. If the (a) The liability of the Company under this policy to an insured lender Company is prejudiced by the failure of an insured claimant to provide the shall not exceed the least of: required proof of loss or damage, the Company's obligations to such insured (i) the Amount of Insurance stated in Schedule A, or, if applicable, under the policy shall terminate, including any liability or obligation to defend, the amount of insurance as defined in Section 2 (c) of these Conditions and prosecute, or continue any litigation, with regard to the matter or matters Stipulations; requiring such proof of loss or damage. (ii) the amount of the unpaid principal indebtedness secured by the In addition, an insured claimant may reasonably be required to submit to insured mortgage as limited or provided under Section 8 of these Conditions and examination under oath by any authorized representative of the Company and Stipulations or as reduced under Section 9 of these Conditions and Stipulations, shall produce for examination, inspection and copying, at such reasonable times at the time the loss or damage insured against by this policy occurs, together with and places as may be designated by any authorized representative of the interest thereon; or Company, all records, books, ledgers, checks, correspondence and memoranda, (iii) the difference between the value of the insured estate or interest whether bearing a date before or after Date of Policy, which reasonably pertain to as insured and the value of the insured estate or interest subject to the defect, lien the loss or damage. Further, if requested by any authorized representative of the or encumbrance insured against by this policy. Company, the insured claimant shall grant its permission, in writing, for any (b) In the event the insured lender has acquired the estate or interest in the authorized representative of the Company to examine, inspect and copy all manner described in Section 2(a) of these Conditions and Stipulations or has records, books, ledgers, checks, correspondence and memoranda in the custody or conveyed the title, then the liability of the Company shall continue as set forth in control of a third party, which reasonably pertain to the loss or damage. All Section 7(a) of these Conditions and Stipulations. information designated as confidential by an insured claimant provided to the (c) The liability of the Company under this policy to an insured owner of Company pursuant to this Section shall not be disclosed to others unless, in the the estate or interest in the land described in Schedule A shall not exceed the least reasonable judgment of the Company, it is necessary in the administration of the of: claim. Failure of an insured claimant to submit for examination under oath, (i) the Amount of Insurance stated in Schedule A; or, produce other reasonably requested information or grant permission to secure (ii) the difference between the value of the insured estate or interest reasonably necessary information from third parties as required in this paragraph, as insured and the value of the insured estate or interest subject to the defect, lien unless prohibited by law or governmental regulation, shall terminate any liability or encumbrance insured against by this policy. of the Company under this policy as to that insured for that claim. (d) The Company will pay only those costs, attorneys' fees and expenses G. Options to Pay or Otherwise Settle Claims; Termination of Liability, incurred in accordance with Section 4 of these Conditions and Stipulations. In case of a claim under this policy, the Company shall have the following 8. Limitation of Liability. additional options: (a) If the Company establishes the title, or removes the alleged defect, (a) To Pay _pflender Payment ie_Amount of Insurance or to Purchase lien or encumbrance, or cures the lack of a right of access to or from the land, or the Indebtedness. cures the claim of unmarketability of title, or otherwise establishes the lien of the (i) to pay or tender payment of the amount of insurance under this insured mortgage, all as insured, in a reasonably diligent manner by any method, policy together with any costs, attorneys' fees and expenses incurred by the including litigation and the completion of any appeals therefrom, it shall have insured claimant, which were authorized by the Company, up to the time of fully performed its obligations with respect to that matter and shall not be liable payment or tender of payment and which the Company is obligated to pay; or for any loss or damage caused thereby. (ii) in case loss or damage is claimed under this policy by the owner (b) In the event of any litigation, including litigation by the Company or of the indebtedness secured by the insured mortgage, to purchase the with the Company's consent, the Company shall have no liability for loss or indebtedness secured by the insured mortgage for the amount owning thereon damage until there has been a final determination by a court of competent together with any costs, attorneys' fees and expenses incurred by the insured jurisdiction, and disposition of all appeals therefrom, adverse to the title, or, if claimant which were authorized by the Company up to the time of purchase and applicable, to the lien of the insured mortgage, as insured. which the Company is obligated to pay. (c) The Company shall not be liable for loss or damage to any insured for If the Company offers to purchase the indebtedness as herein provided, the liability voluntarily assumed by the insured in settling any claim or suit without owner of the indebtedness shall transfer, assign, and convey the indebtedness and the prior written consent of the Company. the insured mortgage, together with any collateral security, to the Company upon (d) The Company shall not be liable to an insured lender for: (i) any payment therefor. indebtedness created subsequent to Date of Policy except for advances made to Upon the exercise by the Company of the option provided for in paragraph protect the lien of the insured mortgage and secured thereby and reasonable a(i), all liability and obligations to the insured under this policy, other than to amounts expended to prevent deterioration of improvements; or (ii) constriction make the payment required in that paragraph, shall terminate, including any loan advances made subsequent to Date of Policy, except construction loan liability or obligation to defend, prosecute, or continue any litigation, and the advances made subsequent to Date of Policy for the purpose of financing in policy shall be surrendered to the Company for cancellation, whole or in part the construction of an improvement to the land which at Date of Upon the exercise by the Company of the option provided for in paragraph Policy were secured by the insured mortgage and which the insured was and a(ii) the Company's obligation to an insured Lender under this policy for the continued to be obligated to advance at and after Date of Policy. claimed loss or damage, other than the payment required to be made, shall 9. Reduction of Insurance; Reduction or Termination of Liability. terminate, including any liability or obligation to defend, prosecute or continue (a) All payments under this policy, except payments made for costs, any litigation. attorneys' fees and expenses, shall reduce the amount of insurance pro tanto. (b) To eav or Othcayisc $gtile with Pluties Other h Insured or However, as to an insured lender, any payments made prior to the acquisition of With the Insured Claimaut. title to the estate or interest as provided in Section 2(a) of these Conditions and (i) to pay or otherwise settle with other parties for or in the name of Stipulations shall not reduce pro tanto the amount of insurance afforded under an insured claimant any claim insured against under this policy, together with any this policy as to any such insured, except to the extent that the payments reduce costs, attorneys' fees and expenses incurred by the insured claimant which were the amount of the indebtedness secured by the insured mortgage. authorized by the Company up to the time of payment and which the Company is (b) Payment in part by any person of the principal of the indebtedness, or obligated to pay; or any other obligation secured by the insured mortgage, or any voluntary partial (ii) to pay or otherwise settle with the insured claimant the loss or satisfaction or release of the insured mortgage, to the extent of the payment, damage provided for under this policy, together with any costs, attorneys' fees satisfaction or release, shall reduce the amount of insurance pro tanto. The and expenses incurred by the insured claimant which were authorized by the amount of insurance may thereafter be increased by accruing interest and Company up to the time of payment and which the Company is obligated to pay. advances made to protect the lien of the insured mortgage and secured thereby, Upon the exercise by the Company of either of the options provided for in with interest thereon, provided in no event shall the amount of insurance be paragraphs b(i) or b(ii), the Company's obligations to the insured under this greater than the Amount of Insurance stated in Schedule A. 81472 CLTA Standard Coverage —1990 04-08-14 Page 5 © California Land Title Association. All rights reserved. The use of this Form is restricted to CLTA subscribers in good standing as of the date of use. All other uses are prohibited. Reprinted under license or express oermission from the California Land Title Association. Order No.: 08021079-920-CMM-CM8 Policy No.: CA-SFXFC-IMP-81472-1-15-08021079 (c) Payment in full by any person or the voluntary satisfaction or release of the insured mortgage shall terminate all liability of the Company to an insured lender except as provided in Section 2(a) of these Conditions and Stipulations. 10. Liability Noncumulative. It is expressly understood that the amount of insurance under this policy shall be reduced by any amount the Company may pay under any policy insuring a mortgage to which exception is taken in Schedule B or to which the insured has agreed, assumed, or taken subject, or which is hereafter executed by an insured and which is a charge or lien on the estate or interest described or referred to in Schedule A, and the amount so paid shall be deemed a payment under this policy to the insured owner. The provisions of this Section shall not apply to an insured lender, unless such insured acquires title to said estate or interest in satisfaction of the indebtedness secured by an insured mortgage. 11. Payment of Loss. (a) No payment shall be made without producing this policy for endorsement of the payment unless the policy has been lost or destroyed, in which case proof of loss or destruction shall be furnished to the satisfaction of the Company. (b) When liability and the extent of loss or damage has been definitely fixed in accordance with these Conditions and Stipulations, the loss or damage shall be payable within 30 days thereafter. 12. Subrogation Upon Payment or Settlement. (a) The Company's Right of Subrogation Whenever the Company shall have settled and paid a claim under this policy, all right of subrogation shall vest in the Company unaffected by any act of the insured claimant. The Company shall be subrogated to and be entitled to all rights and remedies which the insured claimant would have had against any person or property in respect to the claim had this policy not been issued. If requested by the Company, the insured claimant shall transfer to the Company all rights and remedies against any person or property necessary in order to perfect this right of subrogation. The insured claimant shall permit the Company to sue, compromise or settle in the name of the insured claimant and to use the name of the insured claimant in any transaction or litigation involving these rights or remedies. If a payment on account of a claim does not fully cover the loss of the insured claimant, the Company shall be subrogated (i) as to an insured owner, to all rights and remedies in the proportion which the Company's payment bears to the whole amount of the loss; and (ii) as to an insured lender, to all rights and remedies of the insured claimant after the insured claimant shall have recovered its principal, interest, and costs of collection. If loss should result from any act of the insured claimant, as stated above, that act shall not void this policy, but the Company, in that event, shall be required to pay only that part of any losses insured against by this policy which shall exceed the amount, if any, lost to the Company by reason of the impairment by the insured claimant of the Company's right of subrogation. (b) The Insured's Rights and Limitations. Notwithstanding the foregoing, the owner of the indebtedness secured by an insured mortgage, provided the priority of the lien of the insured mortgage or its enforceability is not affected, may release or substitute the personal liability of any debtor or guarantor, or extend or otherwise modify the terms of payment, or release a portion of the estate or interest from the lien of the insured mortgage, or release any collateral security for the indebtedness. When the permitted acts of the insured claimant occur and the insured has knowledge of any claim of title or interest adverse to the title to the estate or interest or the priority or enforceability of the lien of an insured mortgage, as insured, the Company shall be required to pay only that part of any losses insured against by this policy which shall exceed the amount, if any, lost to the Company by reason of the impairment by the insured claimant of the Company's right of subrogation. (c) The Company's Rights Against Non-insured Obligors. The Company's right of subrogation against non-insured obligors shall exist and shall include, without limitation, the rights of the insured to indemnities, guaranties, other policies of insurance or bonds, notwithstanding any terms or conditions contained in those instruments which provide for subrogation rights by reason of this policy. The Company's right of subrogation shall not be avoided by acquisition of an insured mortgage by an obligor (except an obligor described in Section I(a)(ii) of these Conditions and Stipulations) who acquires the insured mortgage as a result of an indemnity, guarantee, other policy of insurance, or bond and the obligor will not be an insured under this policy, notwithstanding Section 1(a)(i) of these Conditions and Stipulations. 13. Arbitration. Unless prohibited by applicable law, either the Company or the insured may demand arbitration pursuant to the Title Insurance Arbitration Rules of the American Arbitration Association. Arbitrable matters may include, but are not limited to, any controversy or claim between the Company and the insured arising out of or relating to this policy, any service of the Company in connection with its issuance or the breach of a policy provision or other obligation. All arbitrable matters when the Amount of Insurance is $1,000,000 or less shall be arbitrated at the option of either the Company or the insured. All arbitrable matters when the Amount of Insurance is in excess of $1,000,000 shall be arbitrated only when agreed to by both the Company and the insured. Arbitration pursuant to this policy and under the Rules in effect on the date the demand for arbitration is made or, at the option of the insured, the Rules in effect at Date of Policy shall be binding upon the parties. The award may include attorneys' fees only if the laws of the state in which the land is located permit a court to award attorneys' fees to a prevailing party. Judgment upon the award rendered by the Arbitrator(s) may be entered in any court having jurisdiction thereof. The law of the situs of the land shall apply to an arbitration under the Title Insurance Arbitration Rules. A copy of the Rules may be obtained from the Company upon request. 14. Liability Limited to This Policy; Policy Entire Contract. (a) This policy together with all endorsements, if any, attached hereto by the Company is the entire policy and contract between the insured and the Company. In interpreting any provision of this policy, this policy shall be construed as a whole. (b) Any claim of loss or damage, whether or not based on negligence, and which arises out of the status of the lien of the insured mortgage or of the title to the estate or interest covered hereby or by any action asserting such claim, shall be restricted to this policy. (c) No amendment of or endorsement to this policy can be made except by a writing endorsed hereon or attached hereto signed by either the President, a Vice President, the Secretary, an Assistant Secretary, or validating officer or authorized signatory of the Company. 15. Severability. In the event any provision of the policy is held invalid or unenforceable under applicable law, the policy shall be deemed not to include that provision and all other provisions shall remain in full force and effect. 16. Notices, Where Sent. All notices required to be given the Company and any statement in writing required to be furnished the Company shall include the number of this policy and shall be addressed to the Company at Commonwealth Land Title Insurance Company, Attn: Claims Department, P.O. Box 45023, Jacksonville, FL 32232- 5023. 81472 CLTA Standard Coverage — 1990 (04-08-14) Page 6 © California Land Title Association. All rights reserved. The use of this Form is restricted to CLTA subscribers in good standing as of the date of use. All other uses are prohibited. Reprinted under license or express Dermission from the California Land Title Association. Order No. 08021079-920-CMM-CM8 Policy No. CA-SFXFC-IMP-81472-1-15-08021079 CLTA Standard Coverage 1990 - (04-08-14) SCHEDULE A Order No.: 08021079-920-CMM-CM8 Policy No.: CA-SFXFC-IMP-81472-1-15-08021079 Amount of Insurance: $626,000.00 Date of Policy: June 2, 2015 at 2:12 p.m. 1. Name of Insured: City of Menifee, a California municipal corporation 2. The estate or interest in the land which is covered by this policy is: A FEE 3. Title to the estate or interest in the land is vested in: City of Menifee, a California municipal corporation 4. The land referred to in this policy is described as follows: See Exhibit A attached hereto and made a part hereof. Premium: $1,922.00 81472 CLTA Standard Coverage —1990 04-08-14 Page 7 © California Land Title Association. All rights reserved. The use of this Form is restricted to CLTA subscribers in good standing as of the date of use. All other uses are prohibited. Reprinted under license or express permission from the California Land Title Association. Order No. 08021079-920-CMM-CM8 Policy No. CA-SFXFC-IMP-81472-1-15-08021079 EXHIBIT A LEGAL DESCRIPTION The Land referred to herein below is situated in the County of RIVERSIDE, State of California, and is described as follows: PARCEL A BEING A PORTION OF LOT 485 OF TRACT NO. 2364 AS SHOWN BY MAP ON FILE IN BOOK 43, PAGES 57 THROUGH 65, INCLUSIVE OF MAPS, RECORDS OF THE COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, IN SECTION 21, TOWNSHIP 5 SOUTH, RANGE 3 WEST OF SAN BERNARDINO MERIDIAN, BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS: BEGINNING AT THE MOST SOUTHERLY CORNER OF SAID LOT 485, SAID POINT ALSO BEING THE SOUTHEAST CORNER OF LAND DESCRIBED IN GRANT DEED AS INSTRUMENT NO. 37728, RECORDED APRIL 23, 1970, OFFICIAL RECORDS OF SAID COUNTY, SAID POINT ALSO BEING ON THE WESTERLY RIGHT OF WAY LINE OF BRADLEY ROAD, 44.00 FEET HALF WIDTH AS SHOWN ON SAID MAP; THENCE NORTH ALONG THE EASTERLY LINE OF SAID LOT 485 AND SAID LAND DESCRIBED IN INSTRUMENT NO. 37728 AND SAID WESTERLY RIGHT Of WAY LINE, NORTH 00°15'24" WEST, A DISTANCE OF 329.00 FEET TO A POINT ON SAID EASTERLY LINE OF' SAID LOT 485, SAID POINT ALSO BEING THE NORTHEAST CORNER OF SAID LAND AND THE TRUE POINT OF BEGINNING; THENCE SOUTHWEST LEAVING SAID EASTERLY LINE AND SAID WESTERLY RIGHT OF WAY LINE ALONG THE NORTHERLY BOUNDARY LINE OF SAID LAND DESCRIBED IN INSTRUMENT NO. 37728, SOUTH 66044'36" WEST, A DISTANCE OF 377.23 FEET, TO A POINT ON THE SOUTHWESTERLY LINE OF SAID LOT 485, SAID POINT ALSO BEING THE MOST WESTERLY CORNER OF SAID LAND; THENCE NORTHWESTERLY ALONG SAID SOUTHWESTERLY LINE, NORTH 56°55'15" WEST, A DISTANCE OF 143.66 FEET TO AN ANGLE POINT ON SAID SOUTHWESTERLY LINE OF SAID LOT 485; THENCE CONTINUING NORTHWESTERLY ALONG THE WESTERLY LINE OF SAID LOT 485, NORTH 18°56'11" WEST, A DISTANCE OF 74.33 FEET TO A POINT ON SAID WESTERLY LINE; THENCE LEAVING SAID WESTERLY LINE, NORTH 66044'36" EAST, A DISTANCE OF 533.41 FEET TO A POINT ON SAID EASTERLY LINE OF SAID LOT 485 AND SAID WESTERLY RIGHT OF WAY LINE; THENCE SOUTH ALONG SAID EASTERLY LINE AND SAID WESTERLY RIGHT OF WAY LINE, SOUTH 00015'24"EAST, A DISTANCE OF 210.41 FEET TO THE TRUE POINT OF BEGINNING. THE ABOVE DESCRIBED PARCEL OF LAND CONTAINS 2.10 CRES MORE OR LESS. APN: 337-230-006-8 81472 CLTA Standard Coverage — 1990 (04-08-14) Pale 8 © California Land Title Association. All rights reserved. The use of this Form is restricted to CLTA subscribers in good standing as of the date of use. All other uses are prohibited. Reprinted under license or express permission from the California Land Title Association. Order No. 08021079-920-CMM-CM8 Policy No. CA-SFXFC-IMP-81472-1-15-08021079 SCHEDULE B EXCEPTIONS FROM COVERAGE This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) which arise by reason of: PART I 1. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records. Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the public records. 2. Any facts, rights, interests or claims which are not shown by the public records but which could be ascertained by an inspection of the land or which may be asserted by persons in possession thereof. I Easements, liens or encumbrances, or claims thereof, which are not shown by the public records. 4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the public records. 5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b) or (c) are shown by the public records. 6. Any lien or right to a lien for services, labor or material not shown by the public records. 81472 CLTA Standard Covera e —1990 (04-08-14) Page 9 © California Land Title Association. All rights reserved. The use of this Form is restricted to CLTA subscribers in good standing as of the date of use. All other uses are prohibited. Reprinted under license or express permission from the California Land Title Association. order No. 08021079-920-CMM-CM8 Policy No. CA-SFXFC-IMP-81472-1-15-08021079 SCHEDULE B EXCEPTIONS FROM COVERAGE PART II 1. Water rights, claims or title to water, whether or not disclosed by the public records. 2. Easement(s) for the purpose(s) shown below and rights incidental thereto, as granted in a document: Granted to: Southern Sierras Power Company, a Corporation Purpose: public utilities Recording Date: May 18, 1928 Recording No: In Book 767, Page 131 of Deeds Affects: said land 3. Easement(s) for the purpose(s) shown below and rights incidental thereto, as delineated on or as offered for dedication on Map/Plat: Tract 2364 Recording No: In Book 43, Page 57 of Maps Purpose: public utilities Affects: the Southwesterly 5 feet and the Southerly 5 feet of said land 4. Declaration of covenants, conditions and restrictions but omitting any covenants or restrictions, if any, including but not limited to those based upon race, color, religion, sex, sexual orientation, familial status, marital status, disability, handicap, national origin, ancestry, source of income, gender, gender identity, gender expression, medical condition or genetic information, as set forth in applicable state or federal laws, except to the extent that said covenant or restriction is permitted by applicable law, as set forth in the below document, which, among other things, may contain or provide for easements; assessments, liens and the subordination thereof; said covenants, conditions and restrictions provide that a violation thereof shall not defeat the lien of any mortgage or deed of trust made in good faith and for value: Recording Date: March 27, 1962 Recording No: as Instrument No. 27668 of Official Records 5. Easement(s) for the purpose(s) shown below and rights incidental thereto, as granted in a document: Granted to: California Electric Power Company, a Corporation and California Water and Telephone Company, a Corporation Purpose: public utilities Recording Date: April 27, 1962 Recording No: as Instrument No. 39179 of Official Records Affects: within the Southwesterly 5 feet and the Southerly 5 feet of said land 6. Easement(s) for the purpose(s) shown below and rights incidental thereto, as granted in a document: Granted to: California Electric Power Company, a Corporation Purpose: public utilities Recording Date: May 18, 1962 Recording No: as Instrument No. 46769 of Official Records Affects: a portion of said land 81472 CLTA Standard Coverage — 1990 (04-08-14) Page 10 © California Land Title Association. All rights reserved. T The use of this Form is restricted to CLTA subscribers in good standing as of the date of use. All other uses are prohibited. Reprinted under license or express permission from the California Land Title Association. Order No.: 08021079-920-CMM-CM8 Policy No.: CA-SFXFC-IMP-81472-1-15-08021079 SCHEDULE B — Part II (Continued) 7. Easement(s) for the purpose(s) shown below and rights incidental thereto, as granted in a document: Granted to: California Electric Power Company, a Corporation Purpose: public utilities Recording Date: May 25, 1962 Recording No: as Instrument No. 49272 of Official Records Affects: a portion of said land 8. The Land described herein is included within a project area of the Redevelopment Agency shown below, and that proceedings for the redevelopment of said project have been instituted under the Redevelopment Law (such redevelopment to proceed only after the adoption of the Redevelopment Plan) as disclosed by a document. Redevelopment Agency: The I-215 Corridor Redevelopment Project Area Recording Date: June 1, 2006 Recording No: as Instrument No. 2006-0398540 of Official Records 81472 CLTA Standard Covers e —1990 (04-08-14) Page 11 © California Land Title Association. All rights reserved. The use of this Form is restricted to CLTA subscribers in good standing as of the date of use. All other uses are prohibited. Reprinted under license or express permission from the California Land Title Association. Order No. 08021079-920-CMM-CM8 Policy No. CA-SFXFC-IMP-81472-1-15-08021079 all I E�illillilli 919111111111 81472 CLTA Standard Coverage — 1990 (04-08-14) Page 12 © California Land Title Association. All rights reserved. The use of this Form is restricted to CLTA subscribers in good standing as of the date of use. All other uses are prohibited. Reprinted under license or express permission from the California Land Title Association.